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2004 01 08 WS Minutes, Work Session 4111 City of Baytown WORK SESSION January 8, 2004 4:50 p.m. 1111 'gam' i 3� �� y�y iFV Y �n x' ga 41. s y� 3 "s �4A`8i bnkd '� m r MINUTES OF THE WORK SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN 41 January 8,2004 The City Council of the City of Baytown, Texas, met in work session on January 8, 2004, at 4:50 p.m. in the Hullum Conference Room of Baytown City Hall, 2401 Market Street, Baytown, Texas, with the following in attendance: Ronnie Anderson Council Member Coleman Godwin Council Member Calvin Mundinger Council Member Don Murray Council Member Mercedes Renteria III Council Member Scott Sheley Council Member Pete C. Alfaro Mayor Gary Jackson City Manager Bob Leiper Assistant City Manager Ignacio Ramirez, Sr. City Attorney Gary W. Smith City Clerk • The meeting was opened with a quorum present after which the following business was conducted: Discuss Bayland Island. City Manager, Gary Jackson, reviewed the responses of potential bidders who did not bid in response to the invitation to bid on Bayland Island. Some talked about encumbrances on the development. Others heard about the invitation to bid too late to respond and others heard about the invitation to bid after the bid deadline. At least one person has indicated an interest in bidding on the restaurant at least at the minimums set out in the invitation to bid. Mr. Jackson stated that staff recommended one more attempt to attract bids on the same terms as previously advertised. Council has authority to alter the terms of the bid package, but changes may affect the timeframe for advertising and receipt of bids. Council Member Anderson stated his support for readvertising. In response to a question, Mr. Jackson stated that the invitation to bid provides that the Council may reject any and all bids. Council discussed the basis for the minimum bids that were part of the initial invitation to bid and the possibility of informing potential bidders of the marina operator's willingness to negotiate regarding the lease on the marina. The discussion included the minimum values required for bids. Mr. Jackson explained that the City currently owes in excess of$722,000-on the restaurant building and in excess of $180,000 on the ship store building. Mr. Jackson S explained that an election is required to sell the park land on the island and provision must be made to discharge the general obligation debt for the marina improvements of which $2,770,000 is outstanding. The possibility of including a referendum on the sale of the park land on the May election was discussed. The restrictions on use of the property to be included in the invitation to Page 3 of 3 Minutes of the Work Session—January 8, 2004 Kimberly Brooks, Assistant Director of Planning and Building Services, described existing and • former enterprise zones within the City and listed the incentives that the City offers. The Ernst &Young representative detailed the steps required for nominating a project to the State of Texas, including calling a public hearing, providing notice of the public hearing, holding the public hearing, adopting an enterprise zone policy, and nominating a project. The current policy could be adopted to apply to any enterprise zone over which the City has authority. Mayor Alfaro asked that an item be included on the January 22 work session to discuss the proposed incentives for a project within an enterprise zone. The regular meeting on that date will provide an item to vote on the policy. Discuss appointments. Baytown Industrial Development Corporation Board. Council Member Sheley announced that he was not ready to make a nomination at the meeting. Electrical Board. Council Member Mundinger indicated that he would move the reappointment of the John Rowland (Graduate Electrical Engineer), A. L. Jordan (Electrical Contractor) and Mark Stanley (Journeyman Electrician)to the Electrical Board. 111) Adjourn. There being no further business, Council Member Mundinger moved adjournment. Council Member Anderson seconded the motion. The vote follows: Aye: Council Members Anderson, Godwin, Mundinger, Murray, Renteria, and Sheley Mayor Alfaro Nay: None. The motion carried and the meeting adjourned at 6:25 p.m. 2)/�'(' Gary/W. Smith City Clerk NOTICE OF MEETING • (IN COMPLIANCE WITH SEC. 551.041, ET SEQ., TEX. GOV'T. CODE) NOTICE is hereby given that the City Council of the City of Baytown will hold a work session on the 8th day of January, 2004 at 4:50 p.m. in the Hullum Conference Room of Baytown City Hall, 2401 Market Street,Baytown, Texas. ITEM(S) to be discussed and acted upon by the Council at this meeting is/are listed on the attached agenda. • j Cryfy Cl k Posted: January 5, 2004 Time: 3:30 p.m. AGENDA Call to Order. �{ U�1��I Ip _ �', 1. Discuss Bayland Island. -I, /1W�t��� 2. Discuss possible Charter review process and Charter amendment procedures. 3. Receive presentation and discuss ExxonMobil Enterprise Zone Project. 4. Appointments Baytown Industrial Development Corporation Electrical Board 5. Adjourn. agenda/worksession/2004/0 1 08 * * * MEMORANDUM * * * January 8, 2004 TO: Mayor and City Council FROM: Gary Jackson, City Manager SUBJECT: Bayland Island Bids Staff has attempted to contact the potential bidders that received information on the Bayland Island/Restaurant sale to learn why no bids were received. The. two recurring issues/comments appeared to be: • The existing lease to the marina operator limiting their options • The amount of the minimum bid on the island sale Several expressed an interest if we placed the property out for bid again. A summary of their comments is attached. We have also received several calls from "new" interested parties who learned of the bid opening either too late or after it had occurred We have provided them CD's with the terms of sale and have solicited their cornmentSr.d1WelkkSleyer.al, have expressed verbal interest in submitting a bid, primarily for the restaurant alone F;.;One has provided a written statement of interest as well-as a request for the opportunity toinmediately re-bid the project to coincide with funding he has available (copies,attached)( In light of the interest expressed in purchasing the,restaurant;abuilding, and considering the time and effort invested in developing the plans an`d specifications for the sale, it appears appropriate to simply change the bid ,;opening date{and rebid the sale. If no additional changes to the specifications-are added, it[is-anticipated-that we could open bids on January to i--� -� ,� �� ��,-� ,� � �, � � ��. to 30 Council could consider them Oat the r re ular neeting on February 12 . Bids would be advertised on January i1r4th fjjahti 21st ands documents �would=tbe llprovided to all parties € �` 71 3 1t �` • in k sT V expressing a continued interest ntIf no bids acceptable area received after re-bidding, other options could be explored. X� ax r✓ f 1 BIDDER'S COMMENTS ON SALE OF BAYLAND ISLAND 12/30/03 SCOTT COVINGTON S. E. COVINGTON & COMPANY 7026 OLD KATY ROAD SUITE 300 HOUSTON, TEXAS 77024 TEL: 713-974-7600 12-17-03 — Looked very hard at the sale. However, the tied up lease agreement and the undetermined cost of dredging caused him to back off. The minimums also carried some weight in his decision. He would develop it, however the market at this time is down in that location. If some changes in minimums, would possibly reconsider. WALKER ROYALL 2911 TURTLE CREEK BLVD. SUITE 1240 DALLAS, TEXAS 75219 TEL: 214-522-7740 12-17-03 — He looked at it and felt like minimum was too high. So he focused his energies elsewhere. He was interested in the island marina. Not a broker. If minimum were $1,000,000.00 would be more appealing. Owns several marinas. Has the cash capital to do it. SOLID WASTE, LTD., INC. P. O. BOX 838 BAYTOWN, TEXAS 77522-0838 ATTN: TIM HAZELWOOD (12-8-03 — not interested —too much to take care of at this time) TEL: 281-837-9000 GRINGOS MEXICAN KITCHEN C/O JOE AGUILAR 2601 UNDERWOOD ROAD LAPORTE, TEXAS 77571 TEL: 281-470-7900 FAX: 281-470-7799 GRINGOS MEXICAN KITCHEN ATTN: AL FLORES (ATTORNEY FOR SAME) 2605 Underwood Road LaPorte, Texas 77571 12-17-03—According to Jonathon Kim, Operations Manager, (281-330-9464) they have operations in Pearland that have them tied up at this time. Said price may be too high, but did not confirm. Only the Restaurant interests him and if we send out again, send it to him to look at. 1 ry • Beazley Company 50 Pond Road Old Saybrook, CT 06475 (860) 388-3491 12-17-03 —Carolyn, Secretary, does all the mail and no idea what I was talking about. Said never received it. Real Estate Company and have numerous offices all over country. Would not be interested in any Texas property anyway. Landry's Restaurants Inc. 1510 West Loop South Houston, TX 77027 10-20-03 Internet correct address TEL: 713-850-1010 (Also refers to Salt Grass Steak House) Received call from Amy 10-21-03 —resent CD to attn: Christina Havik 10-21-03 12-17-03 ---Passed it on to Real Estate & Development personnel. They are more focused on Galveston interests and are definitely not interested in expanding in Baytown. Glenn Angel Legna, Ltd 5210 West Road Baytown, TX 77521 281-421-5721 12-17-03 — Interested in the whole thing, however, the minimum bid was too high. If no minimum bid and can find a way to get out of the lease of the marina, would consider bidding on it. RAWHIDE ROOFING P. O. BOX 1517 BAYTOWN, TEXAS 77522 ATTN: JOYCE TEL: 281-428-8847 FAX: 281-428-1861 12-17-03 —Was getting a group together, but too many restrictions in the spec., i.e., contracts with marina, dredging, etc. Would not bid on it if specs remained the same. In all his years never seen anything like it as far as selling with so many restrictions. If sent exactly as is, not interested. However, showed some interest in restaurant. Previous operator of Marina, 2 reasons why not biddable, 1) dredging expense, and 2) not having covered boat slips. People with expensive boats want to protect their property. • 2 a ACREM, INC. 10-15-03 PICKED UP CD P. O. BOX 1157 BAYTOWN, TEXAS 77522 ATTN: KATHY HOLMES TEL: 281-831-3985 (CELL) FAX: 281-837-6943 12-17-03 — Kathy Holmes said she had a partner and let time slip before realized it and forgot. Said partner, (Jack Adcox) dealt in Real Estate and was looking at the sale of the entire island for himself. Jack Adcox called back and said too many issues in the specs to mention that caused him to back off. Would have to have changes in specs before he would be interested again. Maintenance fee, etc. Not specific. RICHARD STEPHENS 232 CREEKVIEW DRIVE LEAGUE CITY, TEXAS 77573 TEL: 832-385-0874 (MAILED BY TVD 10-17-03) 12-17-03— Said his CD wouldn't download. Individual investor. Location was out of the way to interest him. However, if we changed minimums, might be interested. DOUGLAS JACOBSON (10-20-03 Obtained from Dallas News — will fly in Wed. to pick it up — met with Travis for tour 10-22-03) (12-8-03 not interested. Working on other things at this time) P. O. BOX 9007 DALLAS, TEXAS 75209 • TEL: 214-762-0091 A & M YACHT SALES JESSE EDMUNDSON 1800 SHIPYARD DRIVE SEABROOK, TEXAS 77586 TEL: 281-291-9090 FAX: 281-291-7950 12-18-03 — The lease the marina is under is too cheap and return investment not as good as expected. He has talked to people at the marina and they are nervous because the lease isn't bringing in enough and nervous about the unknown. Too much expense involved in operation, i.e., dredging expense. Change specs and maybe look at it, but based on the existing lease, would only submit a very low offer. 40 3 POST OAK PARTNERS (Wall Street Journal 10-22-03) 411 Moving to 2121 Sage Road after Xmas Suite 185 Houston, Texas 77056 ATTN: JIM MAHONEY TEL: 713-223-4040 FAX: 713-223-4044 12-18-03 Minimum too high. If change minimums might look at again. Would rather be in a position to negotiate price. Sealed bid process is like a shot in the dark and not a big motivator to buy as an investor. Have to do too much research and getting $ numbers together as an investor to throw a bid out there and no chance of negotiating the price. Has seen the property and familiar with it. An investor is looking at return for his investment. Without changes in specs, not interested. ROBBIE WARE P. O. BOX 674 ANAHAUC, TEXAS 77514 TEL: 409-267-3838 12-18-03— Didn't look to be that lucrative of an investment. Was interested in the whole thing, however, price too high to effectively recoup. An investor. Not interested if minimums stay the same. CENTILLION REALTY (10-26-03 Dallas News) • 4011 WEST PLANO PARKWAY SUITE 104 PLANO, TEXAS 75093 ATTN: MARK MESSER TEL: 972-309-0220 FAX: 972-309-0225 12-18-03 Were looking at Marina mainly, however, because of lease didn't bid. Does not understand why anyone would do a long-term lease and then decide to sell it. Not possible to put any value on it because of the lease which doesn't bring in enough money to make it worthwhile for a long period of time. With changes in lease, interested. REMAX SOUTHWEST REAL ESTATE (Houston Chronicle 10-26-03) 14905 SOUTHWEST FREEWAY SUGARLAND, TEXAS 77478 ATTN: IKE SAMAD TEL: 281-207-5000 FAX: 281-242-6754 12-18-03 — Said he had a client who had not come down from up North yet, but if bid it out again would be interested in trying to get his client to look at it. S 4 TEXAS GENERAL LAND OFFICE 1700 NORTH CONGRESS AVENUE SUITE 720 AUSTIN, TEXAS 78701 ATTN: VINCE FRANCE TEL: 512-463-6345 FAX: 512-463-5098 12-18-03 Does not bid on properties. Has to be a chance for open market sales. Does direct purchase for the TX. School Fund. Looking for good deals. Agency to Agency can sell direct. Looking to receive a return on their investment and must be adequate to get their board to accept purchase. Takes 90 days to purchase property. Would be mid January before can come look at the property. Wants to review the CD himself. Has not had a chance to do so. Might call us back after reviewing the CD he has. DORES, LLC. (Wall Street Journal 10-29-03) 2928 NORTH 30TH STREET SUITE C PHOENIX, ARIZONA 85016 ATTN: PETER DAY TEL: 602-667-7713 FAX: 602-667-7796 12-18-03 —Didn't bid because of the lease of the marina. If nothing changes not interested. • QUANTUM INTERNATIONAL, LTD. W _ -(Wall Street Journal 10 29 03) 14922 WEST BEND HOUSTON, TEXAS 77082-4149 ATTN: CAPTAIN ROY SEGERS TEL: 281-558-3876 FAX: 281-558-3876 SAME 12-18-03 — Did not bid because minimums too high. We asked a lot more than he thought it is worth. If we lower the minimum bid on the restaurant, might consider bidding. BROTHERS PROPERTY CORPORATION TWO ALHAMBRA PLAZA SUITE 1280 CORAL GABLES, FLORIDA 33134 ATTN: CHARLES BROEMAN TEL: 305-285-1035 or 1-800-257-8323 FAX: 305-858-2733 Email: cwbroeman(a�brothersproperty.com 12-12-03 — said he sent someone a no-bid. Do all maintenance, dredging, etc., and no money for it. Leased marina not enough revenue to pay for large minimum investment up front. He was only interested in the marina and it is tied up. If drastically change specs, he would be interested. • 5 T , I LARRY BOOZER • ALBERT BURNEY P. O. BOX 426 GADSDEN, ALABAMA 35902 TEL: 256-543-1654 12-18-03 Auctions real estate. Have talked to Federal & State Agencies before and helped them sell their property. If want help call them. ROBERT GREIG (Lives in LaMarque — saw it in the Dallas Morning News 11-3-03) P. O. BOX 16145 GALVESTON, TEXAS 77552 TEL: 409-539-2013 FAX: 409-935-7101 Willing to pay minimum. Interested in restaurant to lease. Has insurance questions. Overlooked the bid opening date. Has sent a letter of interest if we re-bid. SPARK CHASER (Baytown Sun — electric company 2 people going together on entire thing 11-3-03) 1003 COLBY DRIVE BAYTOWN, TEXAS 77520 BUS: 281-420-9472 HOME: 281-428-0100 (ALSO FAX#) ATTN: PAMELA ROLAND • 12-18-03 — Pamela has been very sick. She had some.friends who are interested and was not aware was over. Would be interested if we do it again. CLEARVIEW INVESTMENTS, LTD. (website 11-10-03 —wants FedEx) 2311 CEDAR SPRINGS ROAD SUITE 100 DALLAS, TEXAS 75201 ATTN: TOM MARTIN TEL: 214-855-0550 FAX: 214-855-0558 FEDX ACCT. 1178-5682-8 12-18-03 — Combination of reasons why didn't bid. Principally interested in the marina and no opportunity to change or improve the marina because of the existing lease. No marina opportunity. Not interested. • 6 THOMAS HITCHCOCK INTERESTS, INC. 11334 CEDAR ROAD • BEACH CITY, TEXAS 77520 ATTN: TOM HITCHCOCK TEL: 281-383-2927 FAX: 1-281-573-9229 CELL: 713-254-3105 EMAIL: tomhitch(a�get.net 12-18-03 — Was the only one who showed up for the bid opening. Been in the business for 30 years and developed 2 marinas and would be glad to meet with the City to set down and discuss how to make this property sellable. 2 main reasons for not bidding, 1) existing marina lease with no ability to break the lease 2) $25,000 election to held before could buy it. All unacceptable to a businessman. Couldn't get past these. JOEL KING P. O. BOX 236 HARDY, ARKANSAS 72542 TEL: 870-847-0945 12-19-03 — Not in the market to buy. Wants to go through the auction process. Website — jpking.com Wants to come look at the property after the 1st of the year. SPERRY VAN NESS (Dallas Morning News 11-17-03) 411 4251 FM 2181 SUITE 230-148 CORINTH, TEXAS 76210 ATTN: LESLIE COX TEL: 1-940-270-0042 FAX: 1-940-269-2322 12-19-03 — Broker who presented it to 2 potential buyers, but was not right for them. Considered a highly specialized investment, or high risk, and unknown return. He would be interested if we put it out again for other buyers that might be available even if specs stay the same. 7