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2023 03 02 MDD MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT March 2, 2023 The Board of Directors of the Baytown Municipal Development District (MDD) met in a Regular Meeting on Thursday, March 2, 2023, at 4:40 P.M., in the Council Chamber of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance: Bandon Capetillo President Laura Alvarado Vice President David P. Jirrels Secretary Donna Winfrey Director Suhey Rios- Alvarez Director Kenrick Griffith Director Mike Lester Director Gary Englert Director Jason Reynolds General Manager Scott Lamond General Counsel Raquel Martinez Deputy Assistant Secretary Vice President Laura Alvarado convened the March 2, 2023, MDD Board Regular Meeting with a quorum present at 4:40 P.M., all members were present with the exception of President Brandon Capetillo who arrived at 4:44 P.M., and Directors Heather Betancourth, Sarah Graham, Jacob Powell, and Shaunna Bernshausen, who were all absent. 1. PROPOSED RESOLUTIONS a. Consider a resolution authorizing an Interlocal Agreement with the City of Baytown for the purchase and use of 5335 East Road, Baytown, Texas, in association with the Wayne Gray Sports Complex Parking Expansion. Director of Public Works and Engineering Frank Simoneaux presented Agenda Item l.a. and stated that Resolution No. 458 approves an Interlocal agreement with the City of Baytown for the purchase and use of 5335 East Road, Baytown, Texas, in association with the Wayne Gray Sports Complex Parking Expansion Project, which will allow for additional overflow parking. Furthermore, Mr. Simoneaux stated that the Municipal Development District will contribute $250,000 for the purchase of the property and that additional funds in the amount of $25,566.70 are needed from the City's General Fund to complete the purchase of the property. A motion was made by Director Mike Lester, and seconded by Director Gary Englert to approve Resolution No. 458, related to Item La. The vote was as follows: Ayes: Vice President Laura Alvarado, Secretary David P. Jirrels, Director Donna Winfrey, Director Suhey Rios -Alvarez, Director Kenrick Griffith, Director Gary Englert, Director Mike Lester MDD Board Regular Meeting Minutes March 2, 2023 Page 2 of 5 Nays: None Other: President Brandon Capetillo (Not Present for Vote), Director Sarah Graham (Absent), Director Heather Betancourth (Absent), Director Jacob Powell (Absent), Director Shaunna Bernshausen (Absent) Approved RESOLUTION NO. 458 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING THE PRESIDENT TO EXECUTE AN INTERLOCAL AGREEMENT WITH THE CITY OF BAYTOWN FOR FUNDING THE PURCHASE AND USE OF 5335 EAST ROAD, BAYTOWN, TEXAS, IN ASSOCIATION WITH THE WAYNE GRAY SPORTS COMPLEX PARKING EXPANSION;AUTHORIZING PAYMENT IN AN AMOUNT NOT TO EXCEED TWO HUNDRED FIFTY THOUSAND AND N0/100 DOLLARS ($250,000.00);MAKING OTHER PROVISIONS RELATED THERETO;AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 2. a. Discuss proposed amendments to the Business Improvement Grant program policy and guidelines. Senior Economic Development Analyst Emilio Levario presented Agenda Item 2.a., and stated that Staff presented an overhaul of the proposed amendments to Business Improvement Grant (BIG) program to the Board at their February 2, 2023 meeting, and that the Directors provided input and direction to staff concerning the proposed changes, and as such, the following changes were presented to the Board for their input: Tiers: Improvement Tier 1: • Interior Renovations o Enhance the commercial usability of the building • ugagJIDprovements o Interior; Pedestrlan; Accents; Slgnage • Pedestrian Amenities o Pavers; Exterior Sooting Areas: Shade; Trash Receptacles; Play Equipment; • Emlfl,$l9o.BpglBG,glmmIl[ o fi@Al9C1mg.4SlSVD9.Rm19.S19D3 Improvement Tier 2: • Lgm4SG@NmgIMprovements Edging, Shrubs/Trees; Seasonal Color; Irrigation; Lawn Improv.; fencing • Pff&g4Drivew y I provements o Reconstruction; Resurfacing; Restriping; • Demolitlon Improvement Tler 8: • Code Co gllance l ilrovements o Public Accessibility; Fire Suppression Systems; Compliance w/ Energy Codes, Compliance w/ IBC • EflCi11 L(FJSt9tlg )Zgrovemoms o Materials; Repainting; windows & Doors; Awnings/Canoples; Historical Restoration; Roof Repair: Gutters & Downspouts; MDD Board Regular Meeting Minutes March 2, 2023 Page 3 of 5 Mr. Lavario elaborated on the three tiers and stated that Tier One is focused on manageable improvements that will provide visual impacts, but on a smaller scale. Tier Two would focus on site work, in specific, and it would have a slightly larger visual impact than Tier One. Lastly, Tier Three contained the items with the largest impact visually as well as the life and safety items that tend to be costly. Furthermore, he stated that the three proposed improvement tiers presented are associated to the below maximum reimbursement amounts, and that these amounts would be established based on a scoring matrix that Staff has yet to formalize: Maximum S Current Max. Reimbursement $4t1,00n Proposed Total Max. Reimbursement: $80,000 Improvement Tier 1: $5,000 Improvement Tier 2: 025,000 Improvement Tier 3: 050,000 Tier Amounts: The applicant can apply for more than one tier, including all three tiers, therefore, obtaining a potential max reimbursement amount of $80,000, and reiterated that this is a matching grant so their improvements might be more than the amount that the BIG program can reimburse them. Lastly, Mr. Levario presented the proposed Evaluation Criteria as listed below and stated that Staff is still exploring a Point Waiting Matrix, which is an Excel tool that would calculate a score based on the improvements that are submitted with their application. Criteria: Current EveluatlOn rrituria • Grant applications must score a minimum ofsixty (60) points to be considered for funding, but does not need to address each criterion to receive the total number of allotted points Possible 50 Points Awarded for: Visual Impact or LlfCISafety Code Improvements Possible SO Paints Awarded for: Economic Impact - Possible 20 Points Awarded for: Community E Rtrtorlcal Impact • Applications subject to review and scoring by the Review Committeecomprised of: City Manager's Office, Economic Development, Planning, and finance Proposal Refining point-welghling matrix to compliment the proposed Improvement tiers; scoring ultimately based on Impact of the Improvements MDD Board Regular Meeting Minutes March 2, 2023 Page 4 of 5 Director Kenrick Griffith asked what exactly is the visual impact scoring criteria and Mr. Levario responded that Staff is still fine tuning this item and that Staff will bring this information to the Board at a later date. Director Mike Lester reiterated his desire for the visual impact matrix to be implemented, and expressed his support of what has been presented thus far. In conclusion Mr. Levario responded that the next steps will be for Staff to incorporate the Board's feedback on the matrix and tiers and to present a final packet of amendments and changes at their next meeting, and that the upfront funding will be presented as an amendment at a later date. President Brandon Capetillo reiterated that Staff is seeking to gain consensus from the Board concerning a few of the requested changes to the program, prior to presenting the final version of the policy and guidelines for adoption at the Board's next meeting in April. 3. REPORTS a. Receive the Monthly Construction Status Report for the Baytown Hotel and Convention Center Project. Finance Director Victor Brownlees presented the monthly construction status report for the Baytown Hotel and Convention Center Project and noted that the project is nearing the end, but that there has been a slight delay in completion due to the number of bad weather days and a delay in the arrival of the computer chips for the chillers. However, despite the delays, the opening date is still on schedule for the week commencing May 8, 2023. Mr. Brownlees stated that the next steps are to ensure that the assets are managed properly by Hyatt from this point forward, and introduced Mr. Jeffrey ("Jeff') Binford, with Garfield Asset Management, which is a solely owned subsidiary of Garfield Public/Private, LLC, who has developed the Hotel on the City's behalf. Mr. Jeffrey Binford approached the podium and introduced himself and provided his business credentials, as well as briefly describing the role of an Asset Manager. He stated that a Hotel Asset Manager is hired by the owner to protect the interest of the owner and to maximize the real-estate of the hotel by ensuring that the operator is adhering to the confines of their agreement and everyone is operating as efficiently as possible. Furthermore Mr. Binford explained that he will be reporting quarterly before the Board and weekly at the location once the Hotel is opened and offered any questions from the Board Director Gary Englert asked the length of his agreement and how often the Board will receive updates and Mr. Binford responded that the agreement is for thirty years and that written updates will be submitted monthly from himself, the Asset Manager, and the operator, Hyatt Regency, and he will also present quarterly either in person or via video conference. Director Donna Winfrey questioned if the Asset Management position is in addition to a General Manager and Mr. Binford responded that Property Management (Hyatt Regency) manages and brands the hotel, as they see the day-to-day operations of the hotel. Alternatively, the Asset Manager oversees their processes and procedures to ensure they are operating efficiently, reducing cost and increasing revenues, as the end goal is to maximize performance at a much higher level than day-to-day operations. This is done by reviewing the physical assets, the financials and numbers and measured those against industry standards and make recommendations. MDD Board Regular Meeting Minutes March 2, 2023 Page 5 of 5 4. MANAGER'S REPORT a. The next Baytown Municipal Development District meeting is scheduled for Thursday, April 6, 2023, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas, 77520. General Manager Jason Reynolds reminded the Directors that the next Baytown Municipal Development District meeting is scheduled for Thursday, April 6, 2023, at 4:30 P.M. 5. ADJOURN With there being no further business to discuss, President Brandon Capetillo adjourned the March 2, 2023, MDD Board Regular Meeting at 5:01 P.M. Angela JaOson, City of Baytown