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2022 06 02 MDD Minutes, Joint (BRA/TIRZ) MINUTES OF THE JOINT MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT,BAYTOWN REDEVELOPMENT AUTHORITY,AND THE TAX INCREMENT REINVESTMENT ZONE NUMBER ONE OF THE CITY OF BAYTOWN June 2, 2022 The Board of Directors of the Baytown Municipal Development District (MDD), Baytown Redevelopment Authority (BRA), and the Tax Investment Redevelopment Zone Number One (TIRZ) met in a Joint Meeting on Thursday, June 2, 2022, at 5:30 P.M., in the Council Chamber of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance: Chris Presley Vice President Laura Alvarado Secretary Suhey Rios-Alvarez Director Mary Hernandez Director Heather Betancourth Director Jacob Powell Director Mike Lester Director David P. Jirrels Director Gary Englert Director Bandon Capetillo President Rick Davis General Manager Trevor Fanning General Counsel Angela Jackson Assistant Secretary Terry Sain Chairperson Brenda Bradley-Smith Director Frederick Harlow Director Oscar Chapa Director(Via Zoom) President Brandon Capetillo convened the June 2, 2022, MDD, BRA, and TIRZ Joint Meeting with a quorum of only the MDD Board present at 5:30 P.M., all members were present with the exception of MDD Director Charles Johnson who was absent, MDD Director Suhey Rios-Alvarez who later arrived at 5:33 P.M., BRA/TIRZ Chairperson Terry Sain who later arrived at 5:31 P.M., and the other remaining BRA/TIRZ Directors who were absent resulting in their lack of quorum. 1. DISCUSSIONS a. Receive a presentation on projects/activities funded by the Baytown Municipal Development District: • Parks and Recreation Capital Improvement Projects; • Utility-Related Projects; and • Economic Development Activities. MDD,BRA,and TIRZ Joint Meeting Minutes June 2,2022 Page 2 of 12 General Manager Rick Davis opened the item stating that, over the years, there had not been an opportunity to present some of the things that that staff thought may be helpful in terms of projects and moving the MDD objectives forward. Before presenting the budget, Mr. Davis wished for the MDD Board to be given at least a month to consider some of the items that staff has configured for that year for the MDD budget before voting. Also, Mr. Davis relayed staff thought it would be important for the TIRZ and MDD to hear about the projects that would impact both organizations. Lastly, Mr. Davis stated the City wanted to find and get a sense of whether it was moving forward with the MDD and the projects in the way the Board so desired. Mr. Davis shared that he had visited Oklahoma City with their economic development people. Oklahoma City went through a series of trials and emerged as a world class city.Mr. Davis relayed they did that by focusing resources on what was called"economic development nodes."Economic development nodes were areas that Oklahoma City anticipated, or hoped to realize, more intense economic development activity. The City of Baytown, for example, could look at the mall redevelopment, Highway 99, I-10, Highway 146, or the Evergreen area as nodes and then, all planning and investment would be focused on those notes. Mr. Davis explained that was how Oklahoma City spent their equivalent of what Baytown called its MDD and TIRZ money. He wished for the Boards present to consider that and if that was more of the approach they wanted. The City was interested in hearing their feedback as the following were presented. Parks and Recreation Capital Improvement Projects Parks and Recreation Director Clifford Hatch presented the proposal of his department's Capital Improvement Projects (CIP) funded by the MDD. All the items Mr. Hatch would cover were in the CIP document that Public Works and Engineering Director Frank Simoneaux gave to Council on May 26th. The presentation Mr. Hatch would give included the following: funding location overview, a discussion of five projects, and other amenities and recreational opportunities not in the CIP but still funded by the MDD. Mr. Hatch displayed a map that exhibited the funding locations within parks that were both funded in 2021-2022 and proposed in 2022-2023. The first project, of the five that would be presented, was the Lakewood(Dog) Park. Mr. Hatch relayed that Parks and Recreation hoped to replicate the same projects done in Ginger Creek. With Ginger Creek, the City allocated a spot to put the park, engaged the citizens, and came up with a rendering. Then, the City went back to the residents of the area and got a feel of what they wanted and needed in their neighborhood park. The City accordingly developed a plan and implemented it to produce a park that was displayed on his presentation before the Boards. Mr. Hatch reiterated that was what Parks and Recreated hoped to replicate that same concept in their park planning for Lakewood. The next project Mr. Hatch presented was the Tomkins Area Park with the Texas Parks and Wildlife Grant (TPWG). Mr. Hatch explained the park had moved up on their propriety list after it was awarded the TPWG on March 24,2022. The TPWG was a 50%matching grant of$750,000 for a total of$1.5 million. Upon completion, it would have a fully inclusive playground. Mr. Hatch stressed that the playground was fully inclusive as it would be designed for anybody to fully utilize the entire playground structure—not just provide access. The park would also have fishing areas, picnic areas, parking lots, and walking trails around the perimeter. The first year would be MDD,BRA,and TIRZ Joint Meeting Minutes June 2,2022 Page 3 of 12 dedicated to an archeological study, the yellow book appraisal, and the engineering of the kayak launches. Mr. Hatch then discussed the following project which was the shade structures for Bergeron and Allenbrook. Every year, Parks and Recreation tried to put in at least two shade structures. For the current year, Parks were proposing that for Bergeron and Allenbrook. Mr. Hatch imparted the shade structures had been hugely successful as it extended the usability of the courts both in the daytime for shade and at night for the lights provided. The last playground that was covered was at Roseland Park. Mr. Hatch noted that was not included in the original design,and was something similar to the proposal for Central Heights. The fourth project was a forty-acre disc golf course. Mr. Hatch relayed it was the Parks and Recreation's role to restore Baytown to a premier destination for disc golfing. The City had been in rotation to be a host site for a state-level tournament before the decision to turn the Evergreen disc golf course to a traditional golf course was made.After that fact,Parks and Recreation reached out to the Evergreen course's owner and showed him the forty-acre property that the City owned at the corner of 146, Market, and LB Lefever. It would be a fully wooded course and the first one like that in the area. The course would be built to a state-championship level and would also provide a lot of amenities outside of golf for local residents, such as: wooded trails, parking, and a spot to access the Goose Creek Trail. Mr. Hatch further described the layout and noted the underbrush would be cleared for a sight line of Goose Creek Trail out to the waterway for security and open visibility. The course would utilize the waterways more allowing people to sit, kayak, and watch golf Mr. Hatch noted the disc golf course accomplished a lot of the goals that aligned with the City's Master Plan. The last project Mr. Hatch presented was the Chandler Arboretum and the Wetlands Center relocation study. Essentially, the Wetlands Center would be combined and moved to the Nature Center. Mr. Hatch showed artwork that was a conceptual portion of the Master Plan that depicted what the Arboretum could be. He noted Baytown's Wetlands and Nature Center staff was statewide and nationally recognized for their innovation and professionalism. The project would provide that staff with a facility equal to them to further educate people on Baytown's local ecosystems and allow that staff to do everything in one place. Currently,busloads of children went to the Wetlands Center and participated in what that facility had to offer. Then,the children would get back on the bus to go over to the Nature Center. The combination would provide a one-stop shop and allow the City to have staff at the Nature Center full time, which the City currently did not have. Mr. Hatch stated the project would allow the City to better utilize the waterways atboth centers because the City would continue to use the Wetlands Center location to rent paddle boards, kayaks, and etc. as well as over at the Nature Center location. The City had already begun the process of the Arboretum due to the Houston Port Authority Grant received the previous year. To conclude his presentation, Mr. Hatch ended on other amenities and recreation opportunities outside of the CIP. Those opportunities included things such as: park art projects, youth sports improvement, and the Town Square Ice Rink Chiller. In addition, Parks and Recreation recently redid the scoreboards of the Girls Fastpitch and at the Little League Baseball. Mr. Hatch commented art projects allowed Parks and Recreation to either back Baytown Engage projects or do their own thing, such as the basketball court at Ginger Creek. MDD,BRA,and TIRZ Joint Meeting Minutes June 2,2022 Page 4 of 12 Utility-Related Projects Public Works and Engineering Assistant Director Andrea Brinkley presented the utility-related projects to the Boards. Ms. Brinkley's first slide was of the I-10 Lift Station Number One improvements. The slide had an image that represented the service area of the lift station. Ms. Brinkley pointed out that it was a large service area in an extremely fast-growing part of town. The project would provide some of the support needed for all the sanitary sewer that would be coming Baytown's way. Much of the surface area the image depicted was already in-filled with development. Ms. Brinkley noted there would be other projects coming that would close up any open spaces. The area covered a portion of San Jacinto Boulevard and south of I-10. Ms. Brinkley pointed on her presentation as to where that lift station would be located and would be upsized. She further described the routes as it eventually reached the City's wastewater treatment plant. The cost of the project, in total, was about $23 to $25 million. The portion that would be funded through MDD was about $7 million. Public Works and Engineering wanted to bring that to the MDD's attention because it did support economic development and growth. The design was already underway and would be concluded early next year. After that, constructions would take place which was expected to be going through the end of 2024. Economic Development Activities General Manager Rick Davis gave the presentation that addressed future economic development in Baytown and the City's strategy, staffing, and resources that would be dedicated to that. Mr. Davis recalled Council's directives that had been articulated through the Strategic Plan and placed in the Implementation Plan associated with growing the City's internal economic development capabilities. With that, Mr. Davis stated there were six new initiatives and strategies focused on expanding that economic development programming.Thus,staff put together a plan that Mr.Davis believed was incremental in its approach,but based on what other successful programs looked like throughout the state. Mr. Davis indicated that the City would not get there overnight as economic development offices in other cities were sometimes with seven or eight people. As of that time, Baytown only had Economic Development Manager Bret Gardella. Mr. Davis listed the things that Mr. Gardella was called upon to do and commented that he was spread very thin. Council had brought up needs that Mr. Davis explained the City did not have the bandwidth to handle at that time. Therefore, staff started looking at other economic development programs in the state. Mr. Davis presented a visual of the positions and structure of the following cities: the City of Sugar Land, Frisco,Georgetown, Brownsville,and Abilene.The City of Abilene,in particular,had been recently named as the eighth best economic development program nationally for cities under the population of 200,000. In developing Baytown's internal economic development capabilities, the City was specifically proposing to act step by step and incrementally. Mr. Davis expressed he would like, in the coming budget, was to utilize 25%out of the general fund—due to Chambers County not being within the MDD—and 75% out of the MDD. With that, there would be two additional coordinators for economic development. Mr. Davis further listed the coordinators' duties with one that would be MDD,BRA,and TIRZ Joint Meeting Minutes June 2,2022 Page 5 of 12 focused on businesses and the other that would be more so focused on real estate. The City had a Business Improvement Grant (BIG) that began the momentum, outflow, and assistance coming out of that program for the current year. Mr. Davis believed it would be a successful year as the City worked with at least three business that he was aware of to get those grants in their hands to get those businesses established. Staff wished to create additional programming due to the requirement of marketing those programs. In summary, economic development was a community priority. The City heard from its citizens through the strategic planning process and heard from Council through goal setting and envisioning that had been implemented or placed in the Implementation Plan. Mr. Davis relayed the City would like to move forward, in the coming budget year, to bring more resources to effectively build an economic development program. He reiterated a few points,such as comparing other cities' economic development per Council's request and taking the time for the City to build on its capacities year after year. Baytown had brought one person, and staff now proposed additional resources to help incrementally. During the City Council Retreat, Secretary Alvarado noted Council discussed that particular position. Council talked about how they could offset some of the costs in terms of what the Economic Development Foundation (EDF) was doing and how they could partner more with the Chamber of Commerce. Secretary Alvarado inquired if there were maybe other plans to supplement some of those costs. Mr. Davis had discussed that very issue with staff the day prior. It was discussed that there was not as great of a need for special services as part of the City's contract with the EDF as the City had done so in the past. Those funds, which Mr. Davis believed was at $100,000 at the moment, could probably be redirected to help supplement some of their internal economic development growth capabilities. That was one possible source. As to the Chamber of Commerce, Mr. Davis stated the City had not discussed with the Chamber on any partnerships, but they certainly could. Building Baytown's economic development capabilities opened up the possibilities of doing more synergistic things with the Chamber—specifically, business education and retention. On the special services, Vice President Presley questioned if the $100,000 was strictly on a reimbursement basis. Mr. Davis confirmed so,but noted that it was funding that the City budgeted annually for that. Vice President Presley understood and acknowledged the City funding the special services contract and speculated that the City would do those things still. He did not know how that would be a savings and believed it seemed more like a wash. Mr. Davis agreed it was a wash and that the City would budget that money anyways—except, things had evolved. For example, the Hotel Convention Center and other 212 type of work. Mr. Davis agreed that need was no longer as great and was not expected to be as great in the coming years. In terms of budgeting that money anyway, Mr. Davis noted that perhaps might not be the case since those needs were evaporating to a certain degree. Vice President Presley was correct that it was not a cost saving as it was a redirection of funding. Director Lester noted that Mr. Davis wanted to grow that program incrementally, but there were two positions listed. Director Lester questioned if Mr. Davis intended to bring both those on at the same time? If those two were brought at the same time, what incremental growth after that was Mr. Davis looking at? Mr. Davis answered those positions, in terms of envisions their new office, MDD,BRA,and TIRZ Joint Meeting Minutes June 2,2022 Page 6 of 12 was about as far as they had gone. Those two positions were where staff thought they could fill with the tasks and objectives of things the City wanted to be done. Mr. Davis relayed other organizations,that Baytown tried to parallel or mimic,had people completely dedicated to a certain aspect of economic development. Baytown was not there yet and Mr. Davis suggested the City not go that far. If there was a want to go more incremental, staff would be happy with an additional position. However, if Director Lester was asking for only one position instead of two, Mr. Davis stated the City would be happy with any augmentation of their capabilities. Director Lester clarified his question followed up on Mr. Davis's comment on growing the program and department incrementally. So, would two folks be hired that current year with more hired on the next following years? Mr. Davis believed that needed to be evaluated during the year. City staff wanted to see what they could accomplish with those two positions. If the results were positive, Mr. Davis would have more conversations and get an evaluation from the MDD. Vice President Presley agreed with Director Lester. Upon further discussion, he stated there needed to be enough work to go around especially if the City would continue to pay the Economic Development Foundation (EDF) $250,000. Mr. Davis agreed and stated the City was grateful for any assistance it could get as their desire was to deliver the objective of continuing to grow the City's economic development capabilities. The need to grow an internal economic development program was separate from the EDF. Mr. Davis further expanded on that internal program and the growth he wished to see. While agreeing with the comparison to Baytown's growth with other cities, Director Lester cautioned Baytown to scrutinize that list of cities it was being compared to. For instance, Director Lester opposed comparing Baytown to Frisco. Mr. Davis relayed what he believed Council wanted him to do was to at least look at other successful programs and create something that was uniquely Baytown. Instead of just mimicking Frisco or any other city, Mr. Davis decided to develop a plan that was incremental. However, he recognized that was in the eye of the beholder. Those people were not what drove the City, it was what the City wanted to accomplish that should drive that. Thus,Mr.Davis tried to look at what Baytown was not doing at that moment sufficiently—or what did the City want to do that was not being done at all—and let that drive how many positions would be asked for. He reiterated not wanting to mimic any other city and hoped that he could work with the MDD to evolve that program in a Baytown way. Vice President Presley was glad to see the BIG was getting big.A limitation of that was the amount of funding which was why he made that earlier comment on the two positions. When new bodies were hired, that was just an administrative cost and was much less resources the City would have to deploy to improvement grants and things of that nature. Vice President Presley would hate for the City to get top heavy in administrative costs and have less of a budget to work with. Mr. Davis agreed that was a great point and that being why he suggested the incremental approach. 2. TAX INCREMENT REINVESTMENT ZONE NUMBER ONE a. Receive a presentation regarding the projects that will be funded by the Tax Increment Reinvestment Zone Number One. MDD,BRA,and TIRZ Joint Meeting Minutes June 2,2022 Page 7 of 12 Public Works and Engineering Director Frank Simoneaux had a few updates to give regarding the Tax Increment Reinvestment Zone(TIRZ)Number One and some of the projects involved in that area. The first was the Northern San Jacinto Boulevard Preliminary Engineering Study. One item that was included was the extension of Lone Star Avenue and the relocation of a Park and Ride lot. Harris County Transit approached the City with the demolition of the mall. Mr. Simoneaux relayed that Harris County Transit would, in turn, lose the Park and Ride lot, so the City needed to relocate that. A site was selected south of Buc-ee's to necessitate the extension of Lone Star Avenue to service that lot. Mr. Simoneaux explained the idea was to extend Lone Star parallel to I-10 and then,on the other side of Buc-ee's,curve north and intersect with I-10. That was one item part of that study nearing completion. The other item was the regional detention for that same area. The San Jacinto Boulevard District was intended to have regional detention so that the City could avoid having all the detention ponds on each tract. Mr. Simoneaux stated there was some development interest in the northern part of the San Jacinto Boulevard District. Thus, the City needed to get started with plans for regional detention. The study started the process of selecting sites and sizes while scoping out costs. As the study neared completion, the Public Works and Engineering staff would probably be there next month with a presentation of that Preliminary Engineering Report. Mr. Simoneaux explained he had just wanted to give the MDD an update on what was being done and why. Mr. Simoneaux emphasized that regional detention was important for that area. The idea was that the developers would repay the TIRZ the cost of that detention, and then the TIRZ would initiate the design and construction of that regional detention. Mr. Simoneaux stated that would be a presentation given most likely in the next month. Harris County was contributing to the Park and Ride lot and Lone Star extension with federal funds that needed to be committed. Thus, Baytown would start the Request for Qualification process to get a design engineer on board to do the final design for both projects. Mr. Simoneaux relayed that process would start while Public Works and Engineering staff finalized the report and presented it to the MDD next month. Another project Mr. Simoneaux wanted to update the MDD Board on was the West Cedar Bayou Lynchburg widening. The project was being led by Harris County with TIRZ contributions. The overall project was to widen West Cedar Bayou Lynchburg from Garth Road to Wade Road. It would start with phase one going from Garth Road to just past John Martin. Harris County had broken that up in to three different segments. Mr. Simoneaux stated there would be two different cross sections of the street within the project. Garth to San Jacinto would feature two travel lanes in each direction with a median in the center and a ten-foot trail on the south side. West of John Martin would also have a section that would have two travel lanes on each side and a center turn with a sidewalk on the south side. Mr. Simoneaux reiterated the project was being led by the county and they had just started the final design on phase one. The City recently executed an Interlocal Agreement with Harris County for all the three segments and had a kick off meeting about a week ago for each of the segments. Mr. Simoneaux expected the design to last about a year. Also, there would be a right of way required. depending on how quickly the right of way could be acquired, construction would start. MDD,BRA,and TIRZ Joint Meeting Minutes June 2,2022 Page Sof12 3. PROPOSED TAX INCREMENT REINVESTMENT ZONE NUMBER TWO a. Discuss the possible creation of Tax Increment Reinvestment Zone Number Two for common area improvements. Economic Development Manager Bret Gardella wished to echo for the Tax Increment Reinvestment Zone(TIRZ) Board what Public Works and Engineering Director Frank Simoneaux had mentioned in the last item. Since the TIRZ would pay for that preliminary engineering and would contribute to the final engineering of phase one, that would be presented next month at the TIRZ meeting as soon as that report was received from the Engineering Department. Mr. Gardella relayed there was an urgency because there were three projects that were basically waiting for the TIRZ. Mr. Gardella wished to remind everyone that there was an overlay over that area that did not permit online storage of water for anybody who was building there.Thus,the City had to create drainage in that area along San Jacinto Boulevard. Mr. Gardella wanted to introduce to the Boards that there had been some preliminary discussions over the last couple of months about creating a second TIRZ. The south side of the City,displayed on a map via a PowerPoint presentation, would be the boundary of what staff would present and request to make a second TIRZ. The reason being was that staff knew a lot of development was coming up on the south side of the City and a lot of infrastructure was missing. To develop properly, there would need to be water, sewer, perhaps wider roads, and some type of drainage. Mr. Gardella commented the drainage would be different because of the closeness to the bay. With the onset of the golf course and development immediately west of the golf course that would be residential in nature, Mr. Gardella stated that would bring in the level of housing stock that had been requested. Furthermore, there needed to be a step up in their efforts to create connectivity— specifically, Wismer Road would be connected from Highway 99 all the way down to Evergreen. Additionally,there would also be a need for connection points with water and sewer being that 90- 95% of that property was already in city limits. The Councilman of that district has had conversations with Public Works and Council regarding the residents that had been down there for decades that did not have those services. A second TIRZ would allow the City the ability to create that increment and be able to do some of that work. Mr. Gardella displayed a map that showed the boundary that would be presented to Council in an upcoming meeting to discuss the creation of a second TIRZ. The second TIRZ was not a complicated process to walk through. Mr. Gardella introduced the City's Public Improvement District (PID) consultant who was also coming on to the City as their TIRZ consultant.The TIRZ consultant could answer any questions that the Board may have or talk through the process. Mr. Gardella stated it would be about a five to six weeks process to create a TIRZ. After that, it would be about the increment created down there. The consultant and his staff would prepare that report with the Harris County Appraisal District (HCAD) and the school district.They would determine what the increment would be,how the City would get that collected, and etc. In regards to the proposed boundary, Mr. Gardella relayed that gave the City the ability to do additional work on Bayland Island if projects came up in that direction as well. MDD,BRA,and TIRZ Joint Meeting Minutes June 2,2022 Page 9 of 12 President Capetillo noted Bayland Island was not in the footprint provided to the Boards. Mr. Gardella replied it was not included in the drawing, but had been part of the discussion to make sure they went from West Main and Highway 146 down to incorporate the Island and the Bayou. In regards to Wismer Road, Vice President Presley presumed the developer was considering bringing in $300,000 to $400,000 homes. As the developer was interested in extending Wismer, Vice President Presley questioned if they would pay and want reimbursement from the TIRZ. Mr. Gardella answered they could figure out the funding mechanism, such as either they pay and get reimbursement or they could bond. It all depended on what the strength of Council would be and after the level of increment was developed. Mr. Gardella assured the developer was interested and knew that a collector had to be created. The City and developer had looked to split the western side of the owner's property with the eastern side of the track immediately adjacent. In that way, both property owners in that area would share equally in the loss of potential developable property. Vice President Presley additionally commented over the TIRZ consultant. The City had a lot of issues on larger areas as far as old infrastructure that needed to be improved, such as water, sewer, and drainage. Considering the size of the older part of town and the proposed boundaries, Vice President Presley was curious to the rationale as to why the City was not looking at a larger area. Mr. Gardella stated that was something the City started with management about eight or nine months ago. It was determined that the north end, to run along West Main, could be increased if necessary. However, the challenge increasing in to existing areas was that there would not be increment due to the properties already built out. 4. BAYTOWN HOTEL AND CONVENTION CENTER a. Receive the Monthly Construction Status Report for the Baytown Hotel and Convention Center Project. Finance Director Victor Brownlees introduced Hugh Cronin representing Broaddus, the construction monitors. Mr. Cronin was responsible for producing the report before the Boards and would give the Boards an update on the progress as of that day. After further introductions, Mr. Cronin stated there were three key areas he would like to cover: scope,budget, and duration. What was put in place on the project conformed to the project's plan and specification as they were originally drawn up. Concrete had been poured the morning prior which completed one half of the second level of the podium. As far as budgets were concerned, the current contract value was $58,490,921 which had not changed since the Initial Guaranteed Minimum Price (IGMP) was executed back in February. On to the construction schedule,Mr. Cronin relayed they were meeting their critical path activity timelines and durations. Broaddus had their bi-monthly update the day prior and were very happy with the progress of the project. b. Consider a technical budget adjustment to the Initial Guaranteed Minimum Price regarding the Baytown Hotel and Convention Center. Finance Director Victor Brownlees opened the item stating that President Capetillo had before him the detailed documents outlining the technical adjustment. Mr. Brownlees clarified it would not increase the overall development budget. The technical adjustment was intended to move the MDD,BRA,and TIRZ Joint Meeting Minutes June 2,2022 Page 10 of 12 expenditures related to kitchen equipment for the hotel from one part of the budget to another. Mr. Brownlees added that necessitated its inclusion in the Initial Guaranteed Minimum Price(IGMP). Mr. Brownlees guided President Capetillo to turn to the last page that showed the development budget. He noted $1,685,316 had been added to the construction contract. Furthermore, Furniture, Fixtures, and Equipment (FF&E) had a corresponding credit of $1,408,099. Under owner's contingency, there was a credit of$277,000. Mr. Brownlees explained those two, together, were the overall increases to the IGMP—not an increase to the budget. A motion was made by Secretary Laura Alvarado and seconded by Director David P. Jirrels to approve the technical budget adjustment to the Initial Guaranteed Minimum Price (IGMP) regarding the Baytown Hotel and Convention Center. The vote was as follows: Ayes: President Brandon Capetillo, Vice President Chris Presley, Secretary Laura Alvarado, Director Suhey Rios-Alvarez, Director Mary Hernandez, Director Heather Betancourth,Director Jacob Powell,Director Mike Lester, Director David P. Jirrels, and Director Gary Englert Nays: None Other: Director Charles Johnson(Absent) Approved 5. BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT FY 2022-23 PROPOSED BUDGET a. Consider a resolution setting a public hearing regarding the Baytown Municipal Development District's Fiscal Year 2022-23 Proposed Budget. Finance Director Victor Brownlees relayed it was staffs intention to bring a draft of the budget at their next MDD Meeting on the 7th of July. Due to the condensed timescale for the budget between then and the end of August, staff suggested holding a public hearing the following week on the 14th of July. Mr. Brownlees stated staff would like to see if the MDD Board would be happy and agree to do that so it could be posted within the required statutory time limit. Thus, the proposal was to hold a public hearing on the 14th of July before the Council Meeting. Secretary Alvarado inquired if they needed to amend the item as the original requested for July 7th Mr. Brownlees responded the proposal was that the budget be brought to the MDD at their Regular Meeting on the 7th of July with the public hearing being held on the 14th of July. President Capetillo additionally noted the item did not have a date and questioned if that was open based off the motion that would be made. It was confirmed that was correct. A motion was made by Secretary Laura Alvarado and seconded by Director Mary Hernandez to approve Resolution No. 440, related to Item 5.a., establishing July 14, 2022 as the date for the public hearing regarding the proposed budget. The vote was as follows: MDD,BRA,and TIRZ Joint Meeting Minutes June 2,2022 Page 11 of 12 Ayes: President Brandon Capetillo, Vice President Chris Presley, Secretary Laura Alvarado, Director Suhey Rios-Alvarez, Director Mary Hernandez, Director Heather Betancourth,Director Jacob Powell,Director Mike Lester, Director David P. Jirrels, and Director Gary Englert Nays: None Other: Director Charles Johnson(Absent) Approved RESOLUTION NO. 440 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT, ESTABLISHING THE DATE, TIME AND PLACE FOR A PUBLIC HEARING ON THE FISCAL YEAR 2022- 2023 PROPOSED BUDGET; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 6. REPORTS a. Receive the Baytown Municipal Development District's Quarterly Financial and Investment Reports for the Quarter Ending March 31, 2022. Finance Director Victor Brownlees opened the item wishing to draw attention to the sales tax figures. Mr. Brownlees anticipated heading$8 million that year in sales tax to the MDD against a budget of$6.6 million. Looking out to the next year, Mr. Brownlees projected the MDD would bring in over $8 million easily in the next fiscal year. The MDD Board was in good shape; however,he emphasized that the MDD made a major commitment, in the last and in to the current year, to ensure the City had a first-class Hotel and Convention Center. Mr. Brownlees explained that meant not as much money was left in the fund balance as the MDD Directors were used to. Therefore, when looking at the budget for the next year, they would need to consider the extent to which they could commit fully to all of the project that the MDD would like to see funded through the Capital Improvement Projects(CIP).The CIP was a very deliverable and actionable plan,but— in the context of the funding available from the MDD—the Board may need to rethink the timing of some of those projects. Overall, Mr. Brownlees concluded it was a good half-term report. 7. CLOSING COMMENTS General Manager Rick Davis hoped everything had been helpful, and relayed that staff thought it was important that TIRZ heard some of the things going on in with the MDD and vice versa. Mr. Davis stated they could expect to continue to utilize those instruments to fund critical infrastructure. Also, staff would recommend an expansion of the first TIRZ to probably take the mall redevelopment,prior to that project going vertical,so that the MDD could reap that increment. Mr. Davis explained that would help fund some of the infrastructure around the mall MDD,BRA,and TIRZ Joint Meeting Minutes June 2,2022 Page 12 of 12 redevelopment area,including Garth Road. As seen in their last meeting,the MDD had$1.8 billion worth of capital project slated for the next five to ten years. Mr. Davis stated that would require exceptional creativity on all of their part to make that happen. Mr. Davis expressed his appreciation to the Boards and questioned if they liked the direction of the MDD and the TIRZ. In regards to the City's internal economic development and the Economic Development Foundation (EDF), Vice President Presley commented it seemed like there were synergies there that could be better utilized in various ways. Director Betancourth agreed and stated she could not answer Mr. Davis's question due to her needing more time to process all the information. In the future, if the Boards wanted to have those meeting where there could be actual feedback, Director Betancourth suggested they should receive the presentations ahead of time instead of at the meeting. Mr. Davis replied staff was fine waiting for that, but that he did want to get that question out there. Conceptually, in the discussion about Oklahoma City, Mr. Davis believed the question needed to be asked. After all those years, were the Directors happy with the way the City utilized the MDD? The Directors did not need to answer that day, yet Mr. Davis suggested they think about it and sit down with him to talk about it. President Capetillo agreed with the comments made. With TIRZ Number One turning in to TIRZ Number Two, that was a component of development and growth of the City. President Capetillo interpreted Mr. Davis's question in that he was asking the Boards of the philosophical approach and if they approved,wanted to add input,or wanted to change direction.President Capetillo stated it would take each one of the Directors time to be able to absorb that and provide a proper response. To follow up, Vice President Presley stated that the agenda on TIRZ Number Two referenced having a discussion to find common area improvements. In relation to Director Betancourth's comment, if the map was attached with a little more information, that could have helped. 8. ADJOURN With there being no further business to discuss, President Capetillo adjourned the June 2, 2022, MDD, BRA, and TIRZ Joint Meeting at 6:31 P.M. Angela Jac1 son, Assistant S ar}, ;= City of Baytown = 4.- = = • r Ulflfll 1N�1