2022 08 04 MDD MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT
August 4, 2022
The Board of Directors of the Baytown Municipal Development District (MDD) met in a Regular
Meeting on Thursday, August 4, 2022, at 4:30 P.M., in the Council Chamber of the Baytown City
Hall, 2401 Market Street, Baytown, Texas with the following in attendance:
Chris Presley
Donna Winfrey
Suhey Rios -Alvarez
Charles Johnson
Heather Betancourth
Jacob Powell
David P. Jirrels
Bandon Capetillo
Rick Davis
Scott Lemond
Angela Jackson
Vice President
Director
Director
Director
Director
Director
Director
President
General Manager
General Counsel
Assistant Secretary
President Brandon Capetillo convened the August 4, 2022, MDD Board Regular Meeting with a
quorum present at 4:30 P.M., all members were present with the exception of the absence of
Secretary Laura Alvarado, Director Mary Hernandez, Director Mike Lester, Director Gary Englert,
Director Shaunna Bernshausen, and Director Suhey Rios -Alvarez who later arrived at 4:32 P.M.
1. MINUTES
A motion was made by Director Charles Johnson and seconded by Director Jacob Powell to
approve the minutes of Items La. through 1.c. together, as submitted. The vote was as follows:
Ayes: President Brandon Capetillo, Vice President Chris Presley, Director Donna
Winfrey, Director Suhey Rios -Alvarez, Director Charles Johnson, Director
Heather Betancourth, Director Jacob Powell, and Director David P. Jirrels
Nays: None
Other: Secretary Laura Alvarado (Absent), Director Mary Hernandez (Absent),
Director Mike Lester (Absent), Director Gary Englert (Absent), and
Director Shaunna Bernshausen (Absent)
Approved
MDD Board Regular Meeting Minutes
August 4, 2022
Page 2 of 7
a. Consider approving the minutes of the Municipal Development District, Baytown
Redevelopment Authority and Tax Increment Reinvestment Zone Number One Joint Special
Meeting held on June 2, 2022.
b. Consider approving the minutes of the Municipal Development District Regular
Meeting held on July 7, 2022.
C. Consider approving the minutes of the Municipal Development District Special
Meeting held on July 14, 2022.
2. BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT FY2022-23 PROPOSED
BUDGET
a. Consider a resolution adopting the Baytown Municipal Development District Fiscal
Year 2022-23 Budget.
Finance Director Victor Brownlees opened the item noting there were no changes to the budget as
last presented to the MDD Board. President Capetillo inquired for any additional entries as he
wished to make sure all the Directors had the opportunity to communicate with Administration.
In looking at the Capital Improvement Project ("CIP") Budget, Director Betancourth noticed three
projects that might be more appropriate under MDD funding. The projects were as follows:
1) A Design for the Jenkins Park Clubhouse for $270,000;
2) A Design for the 100 Block at Texas Avenue for $200,000; and
3) Renovations to the Art League Building for $600,000.
In regards to the Art League Building, Director Betancourth wished to consider lowering that to
$150,000. With that, she requested to hear the MDD Directors' thoughts on taking those items out
of the CIP and into their budget. Director Betancourth noted the MDD Budget had $742,000 in
unallocated funds and reiterated her thoughts that those projects belonged on MDD and not on
debt issuance.
In response to Director Betancourth, Vice President Presley believed the Architectural and
Engineering Committee should finish their process with the CIP before making any
recommendations. Also, two of the items mentioned were in his district so he requested
Administration to include the Council Member when there were proposed changes to their district.
Nevertheless, Vice President Presley agreed that looking at reducing larger numbers made sense.
Vice President Presley then further inquired if there were still two positions in the budget for the
Economic Development Department. Mr. Brownlees confirmed there were, so Vice President
Presley shared he supported allocating money for only one position. He questioned if the Economic
Development Foundation ("EDF") had a full contract in the budget. General Manager Rick Davis
replied the special services section was not, but the base contract was in the MDD budget. With
that, Vice President Presley asked they move slow and deliberate to make sure the duties were well
MDD Board Regular Meeting Minutes
August 4, 2022
Page 3 of 7
defined for the new position. He was prepared to support one position in the spirit of moving
forward incrementally.
Director Betancourth clarified she suggested the MDD was an appropriate funding source and not
questioning whether those projects were warranted, nor if their cost was correct. President
Capetillo believed both comments were correct. It seemed prudent to him that the Architectural
and Engineering Committee analyze if there needed to be transfers between the CIP and the MDD.
With their contingency fund of $742,000 in mind, and if there was a recommendation by the
Committee, President Capetillo believed that could be cash -funded by the MDD. Moreover,
Director Betancourth was also correct in regards to certain projects being more appropriate for the
MDD—if that was what the Committee decided. If they left that $742,000 as unforeseen and there
was a recommendation in thirty or sixty days, the MDD could always take action at that time.
President Capetillo then relayed in front of the MDD Directors was a communication by the Art
League regarding their facility improvement needs. As suggested, he agreed the $150,000
threshold was appropriate; however, no action would be taken that day. President Capetillo thought
that amount was appropriate for the aesthetics and improvement of the gallery, but there may be
more complex engineering or structural needs where a larger amount may be needed. However,
they were not there yet and President Capetillo would await the Architectural and Engineering
Committee's as well as the Finance Committee's recommendation. He further discussed the checks
and balances between those two committees and he hoped they may get those recommendations
before Council approved the budget later in August.
Regarding the two new positions being requested for Economic Development, President Capetillo
also supported only one position as a budgetary item. Secretary Alvarado had communicated to
President Capetillo about the help needed by small businesses, which he believed one position
could fill that gap. Director Johnson agreed on that note, although he advised to keep in mind the
bigger businesses wanting to come in to Baytown as well. He gave favorable words on the job
done by Economic Development Manager Bret Gardella, so he did not see anything wrong with
the two requested positions. If Economic Development was important to their City, there should
be an emphasis on that. Director Johnson relayed comments he received regarding the expansion
of Economic Development as a fully functioning department, and cautioned against moving in
increments as he wished to see the full effects sooner. However, Director Johnson did agree there
should be more thought before deciding on that second position.
Director Betancourth, likewise, supported having two positions. Director Powell had no
preference. However, if they chose two positions, he believed they should pull back from the EDF
and allocate more funds to develop that department internally. Furthermore, Director Powell liked
the idea of moving projects from the CIP that the Architectural and Engineering Committee would
review to see what the City could cash -fund as opposed to keeping those on Certificates of
Obligation (COs) In looking at the projects, he wondered if the City could fully execute all of
those. If not, Director Powell suggested they find somewhere else to spend that in the current year.
Director Jirrels preferred adding one position at this time, and the other position being added later
in order to see if the position would benefit the City. In looking at the numbers under staff, it went
from $173,000 to $285,000 which Director Jirrels did not believe was an excessive amount of
MDD Board Regular Meeting Minutes
August 4, 2022
Page 4 of 7
money for two positions anyways. Regardless, he felt more comfortable with adding one position
at that time. President Capetillo confirmed they had that ability to add one position now and
another position at a later date. Director Rios -Alvarez similarly supported starting with one
position. In regards to projects and future amenities, she inquired about planning for a dog park on
their side of town, in Council Districts 1 or 2. Parks and Recreation Director Clifford Hatch
confirmed his department were always looking for dog parks in different areas, but their location
was a delicate matter. Returning to the discussion about the two positions, Director Winfrey agreed
with funding one position at a time to see if the second would be necessary. She also liked the idea
of the MDD being a funding source for the CIP as it took away from the debt of the City.
President Capetillo informed the Directors about the differences the City did economically in-
house versus with the EDF. The EDF facilitated site selection for international matters. In the
Baytown area, the EDF worked mostly in Chambers County as that was where growth was
occurring. The in-house economic team focused more on retail, restaurants, and small businesses.
President Capetillo believed they had two different missions and both should be funded
appropriately. Moreover, he reiterated supporting one position for the Economic Development
Division to start off with. Before utilizing the $742,000, he requested they reserve funds and revisit
the request around mid -budget for that second position.
Mr. Davis advised the MDD to authorize the two positions. Before they fill the second position,
he offered to come back and discuss how they utilized that first position. Rather than having to
wait a year to get the second position, he could come back mid -year to hear the MDD Directors
feedback. Vice President Presley requested clarification on when would be "mid -year," which Mr.
Davis replied about March. The next City Manager would then have input on that additional
position. President Capetillo then discussed the adoption of the budget. If it were approved as is,
the MDD Directors could come back for more things as he wanted to have a better understanding
on the Art League and the two positions. President Capetillo agreed to leave the two positions in
the budget, as Mr. Davis suggested. He only requested staff to not advertise for that second position
until mid -year when the MDD revisit the discussion.
A motion was made by Director Charles Johnson and seconded by Vice President Chris Presley to
approve Resolution No. 433, related to Item 2.a. The vote was as follows:
Ayes: President Brandon Capetillo, Vice President Chris Presley, Director Donna
Winfrey, Director Suhey Rios -Alvarez, Director Charles Johnson, Director
Heather Betancourth, Director Jacob Powell, and Director David P. Jirrels
Nays: None
Other: Secretary Laura Alvarado (Absent), Director Mary Hernandez (Absent),
Director Mike Lester (Absent), Director Gary Englert (Absent), and
Director Shaunna Bemshausen (Absent)
Approved
MDD Board Regular Meeting Minutes
August 4, 2022
Page 5of7
RESOLUTION NO.443
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
MUNICIPAL DEVELOPMENT DISTRICT ADOPTING A BUDGET FOR THE
ENSUING FISCAL YEAR, BEGINNING OCTOBER 1, 2022, AND ENDING
SEPTEMBER 30, 2023; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
3. PROPOSED RESOLUTIONS
a. Consider a resolution approving a Business Improvement Grant application
submitted by Grind and Rise Inc. for an amount not to exceed $40,000.00.
Economic Development Manager Bret Gardella opened the item explaining to the MDD Board
Grind and Rise Inc., was an in -door batting range complex. The company was working towards
getting their DBA, or trade name, assigned, which would then be given to him. Mr. Gardella
relayed the application had been approved by the City Council in their meeting the month prior, in
July. City Attorney Scott Lemond clarified Council approved the amount without the company
name, and they had worked through the issues of the legal name of the company, which was Grind
and Rise Inc.
Director Rios -Alvarez inquired if what they were approving was specific to the Grind and Rise
Inc., business or to general improvements. Mr. Gardella answered it was specific to their business
and to the guidelines of the Business Improvement Grant Program regarding the exterior
beautification of the property. On the interior, the program allowed for life -safety issues but had
been expanded for items such as flooring, doors, and/or the addition of built-in units. The program
also expanded its dollar amount from $20,000 up to $40,000, but was still a fifty-fifty
reimbursement program. Mr. Gardella further reiterated everything would be specific to the
individual business.
Director Rios -Alvarez rephrased her question to be if the business were to move, would they
approve something that would not help other businesses move in. Mr. Gardella replied the
improvements would have been made to the location. If it were a lease premises, improvements
needed permissions from the landlord and not the City. Nonetheless, the program allowed
businesses to be reimbursed for that expense. Vice President Presley then gave the instance if the
City would approve a business to purchase furniture, would personal property be an eligible
expense and Mr. Gardella answered it was not. The Revolving Loan Fund did allow for such
expenses, but machinery specific to the business would be attached with a Uniform Commercial
Code Article 9 (UCC 9). If they went out of business, the equipment could be taken back as a
reimbursement on the loan. However, the City did not have a loan and only worked with the grant
program.
Before entertaining the motion, President Capetillo gave positive comments of the item regarding
the franchise and the facility for both baseball and softball.
MDD Board Regular Meeting Minutes
August 4, 2022
Page 6 of 7
A motion was made by Director Heather Betancourth and seconded by Vice President Chris
Presley to approve Resolution No. 444, related to Item 3.a. The vote was as follows:
Ayes: President Brandon Capetillo, Vice President Chris Presley, Director Donna
Winfrey, Director Suhey Rios -Alvarez, Director Charles Johnson, Director
Heather Betancourth, Director Jacob Powell, and Director David P. Jirrels
Nays: None
Other: Secretary Laura Alvarado (Absent), Director Mary Hernandez (Absent),
Director Mike Lester (Absent), Director Gary Englert (Absent), and
Director Shaunna Bernshausen (Absent)
Approved
RESOLUTION NO. 444
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
MUNICIPAL DEVELOPMENT DISTRICT APPROVING A BUSINESS
IMPROVEMENT GRANT APPLICATION SUBMITTED BY GRIND AND
RISE INC.; AUTHORIZING REIMBURSEMENT FUNDING UNDER THE
BUSINESS IMPROVEMENT GRANT PROGRAM IN AN AMOUNT NOT TO
EXCEED FORTY THOUSAND AND NO/100 DOLLARS ($40,000.00); AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
4. REPORTS
a. Receive the Baytown Municipal Development District's Quarterly Financial and
Investment Reports for the Quarter Ending June 30, 2022.
Finance Director Victor Brownlees presented the District with their quarterly financial and
investment reports, and noted the rise of sales tax continued. The MDD was on target to achieve
over $8 million in sales tax in the current year, which was reflected in the next year's budget. On
expenditures, the MDD was where it was expected to be leaving them good for the next year. As
the budget had already been discussed, Mr. Brownlees relayed they had a healthy contingency,
which would grow rather than reduce if sales tax continued at its current pace.
b. Receive the Monthly Construction Status Report for the Baytown Hotel and
Convention Center Project.
As the Broaddus Representative was not able to attend the meeting, Finance Director Victor
Brownlees gave the status report to the MDD Directors. He noted the hotel looked good to achieve
the timeframe established at the commencement of the project and was currently on budget. In
fact, Mr. Brownlees had received an Order Request for regular payments to the contractor that day,
which was well within the development budget. He anticipated the MDD would receive the final
guaranteed maximum price at their next meeting. Mr. Brownlees believed there was no indication
MDD Board Regular Meeting Minutes
August 4, 2022
Page 7 of 7
that price would deviate, but inflation was running amuck in the construction industry. If that
presented itself as an issue, Mr. Brownlees would raise that to the MDD Board.
5. MANAGER'S REPORT
a. The next Baytown Municipal Development District meeting is scheduled for
Thursday, September 1, 2022, at 4:30 P.M., in the Council Chamber located at City Hall, 240
I Market Street, Baytown, Texas, 77520.
General Manager Rick Davis informed the MDD Board he was in the midst of meeting with
ExxonMobil to discuss future Economic Development Agreements and relayed he would keep
them updated on how those talks proceeded as their next meeting would be on August 18, 2022.
He reminded the District that their next MDD Meeting was scheduled for September 1, 2022, at
4:30 P.M.
6. ADJOURN
With there being no further business to discuss, President Capetillo adjourned the August 4, 2022,
MDD Board Regular Meeting at 5:10 P.M.
City of Baytown