Loading...
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