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2023 06 01 MDD MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT June 11, 2023 The Board of Directors of the Baytown Municipal Development District (MDD) met in a Regular Meeting on Thursday, June 1, 2023, at 4:36 P.M., in the Council Chamber of the Baytown City Hall, 2401 Market Street, Baytown, Texas, with the following in attendance: Laura Alvarado Vice President David P. Jirrels Secretary Donna Winfrey Director Suhey Rios- Alvarez Director Sarah Graham Director Kenrick Griffith Director Heather Betancourth Director Jacob Powell Director Mike Lester Director Shaunna Bernshausen Director Bandon Capetillo President Brant Gary Interim Assistant General Manager Carol Flynt Interim Assistant General Manager Kristin Holmes Assistant General Counsel Angela Jackson Assistant Secretary President Capetillo convened the June 1, 2023, MDD Board Regular Meeting with a quorum present at 4:36 P.M. All members were present with the exception of Director Gary Englert. 1. MINUTES a. Consider approving the minutes of the Municipal Development District Regular Meeting held on April 6, 2023. A motion was made by Vice President Laura Alvarado and seconded by Director Jacob Powell to approve the meeting minutes of the Municipal Development District Regular Meeting held on April 6, 2023, as submitted. The vote was as follows: Ayes: President Brandon Capetillo, Vice President Laura Alvarado, Secretary David P. Jirrels, Director Donna Winfrey, Director Suhey Rios -Alvarez, Director Sarah Graham, Director Kenrick Griffith, Director Heather Betancourth, Director Jacob Powell, Director Mike Lester, and Director Shaunna Bernshausen Nays: None Other: Director Gary Englert (Absent) Approved MDD Board Regular Meeting Minutes June 1, 2023 Page 2 of 5 2. BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT FY 2023-24 PROPOSED BUDGET a. Discuss the Baytown Municipal Development District's Fiscal Year 2023-24 Proposed Budget and budget process. Finance Director Victor Brownlees presented the first draft of the Municipal Development District (MDD) Fiscal Year 2023-2024 Proposed Budget. He informed the Board that there was an item on this agenda to set the Public Hearing at their next meeting scheduled for July 6, 2023. Mr. Brownlees proceeded to make note of the significant changes year over year. Over the last five years, they have added over $2.1 million in revenues from sales tax. He informed the Board that was a 33% increase in their budget over the last five years. Although that was something to celebrate, Mr. Brownlees was concerned they may not be able to rely upon those sales tax revenues moving forward due to trends in the economy. For that reason, he did not want to be ambitious with the revenues they anticipated next year. Thus, sales tax was added conservatively at a 2% increase. Mr. Brownlees did note that the Board could revisit the budget and go back and spend any additional monies if the numbers were to come in higher than projected. Lastly, Mr. Brownlees highlighted the new projects that were added to the budget as follows: • $60,000 — Art in the Park; • $70,000 — Baytown Sports Youth League Improvements; • $749,914 — Thompson Area Park, which would be a 50% match of funds from a grant that the City sourced in March of 2022 from the Texas Park and Wildlife; • $260,000 — Shade Structures for basketball courts at Pelly and Barkaloo Parks; and • $350,000 — Pirates Bay Waterpark Splash Pad. While he was not opposed to the projects presented, Director Powell wished to see moving forward with the major projects coming out of the MDD to have more of a focus on economic development. He noted there may be projects elsewhere, such as the General Fund, that had more of an economic impact where they could do a swap on. Director Betancourth agreed and noted that same philosophy could be utilized with the Texas Avenue area. She knew that there were utility issues and that this may be another avenue to get those issues fixed. Moreover, Director Betancourth questioned over the Baytown Sport League Improvements' location. Was that a generic name or the name of a specific location? Parks and Recreation Director Clifford Hatch stepped up to the podium and confirmed that was a generic name. The item was for a lot of little things, such as fence, sidewalk, and bleacher repairs. Director Betancourth additionally asked if that had anything to do with the baseball field that the MDD Board stated they would not invest in because it was owned by the school district. President Capetillo also recalled that they did not want to invest in capital improvements unless the City owned the property. However, he understood the item in question was for maintenance, repairs, and general upkeep since the property was in operation. Mr. Hatch confirmed that was correct. MDD Board Regular Meeting Minutes June 1, 2023 Page 3 of S With regard to Director Powell's point, President Capetillo would also like the MDD to focus more on large scale campaigns. He offered Bayland Island as an example. President Capetillo proposed to construct a parking garage along with other improvements as that would promote economic growth. He agreed that the MDD should wean off of being Parks and Recreation's funding source as they had the General Fund for that. He believed their investments should relate directly to economic growth and that was the direction he would like to go to as soon as possible. Vice President Alvarado wondered if there was room in the General Fund if they were to move the Parks and Recreation items now. Or, should they wait until the next fiscal year? Mr. Brownlees's opinion was that it was a huge merit what the Board was suggesting. He was concerned that by shifting that to the General Fund, it would require further decisions on the General Fund on projects that decisions had already been made about. Nevertheless, he conceptually agreed that the Board was right but he did not think they could do that in one step. Mr. Brownlees suggested they take this back to the Capital Improvement Plan (CIP) Committee. Director Graharn was concerned that putting everything in to one area would risk those other things not being taken care of. She did not want to see those items being taken away and then also having to redo the General Fund. In the end, as everything would still be paid for, what did it hurt to keep them in the MDD Fund? Director Powell responded that it related to the make-up of the MDD having an expertise in banking and real-estate which was very specific to economic development. As such, he did not think all of the Parks projects fed in to economic development. Therefore, for these decisions, he believed it was best to use the expertise of the MDD Board. Vice President Alvarado wished to note that there may be some Parks projects that would add economic development. For example, Pirates Bay and Calypso Cove brought in people from outside of the City who spent money. Thus, she cautioned against crossing all Parks projects out. Nevertheless, she did like the idea of making that movement. Director Lester agreed, like with the Pirates Bay Splash Pad, that it did bring economic development. However, considering that the Sports League item was for small maintenance projects, he did question why that was in the MDD Budget. If they did not move those to the General Fund, then they would have to compete with other more significant projects. Thus, Director Lester agreed that the MDD should look at projects that could be competitive with each other to see which would move forward. President Capetillo summarized the intent of the MDD was for economic growth and that they needed to come to a consensus for the future direction of the MDD. Having heard the discussion of the Board, Mr. Brownlees questioned if it would help if they moved the Art in the Park, Baytown Youth Sports League Improvements, and the Basketball Shade Structure items to the General Fund. President Capetillo responded with a yes. Director Betancourt questioned what would be the time to discuss what projects should be included in the MDD. Mr. Brownlees replied that this was the meeting to discuss that as well as their next MDD meeting, at the Budget Public Hearing, and or if the Board wished to call a Special Meeting beforehand. President Capetillo noted that the MDD collectively had expenditures at $8.3 million, and wondered how much of that was already committed. Mr. Brownlees replied about $6.5 million. President Capetillo requested that there be some way for them to identify what was off the table and what could be up for discussion. Mr. Brownlees relayed the list of the new projects he gave could all be in play except Thompson Area Park because they were already committed to that. Also, as the Board recognized the Pirates Bay Splash Pad had merit, he suggested that not be up MDD Board Regular Meeting Minutes June 1, 2023 Page 4 of 5 for debate as well. All the others could be shifted to the General Fund and the City Council could then decide what would be priority. President Capetillo reiterated his request to have a printout of all the projects to note what was obligated and to have that for each MDD Board Member. The MDD Board proceeded to discuss matters concerning their budget and projects with City Staff. After, Interim Assistant General Manager Brant Gary asked the Board to clarify what projects needed to be moved in or out of the General Fund. President Capetillo broadly responded that the Board was interested in first looking at what that would look like as both the MDD and City Council would have to make decisions on what that transition would look like. b. Consider a resolution setting a public hearing regarding the Baytown Municipal Development District's Fiscal Year 2023-24 Proposed Budget. A motion was made by Vice President Laura Alvarado and seconded by Director Sarah Graham to approve Resolution No. 462, related to Item 2.b., establishing July 6, 2023 as the date for the Baytown Municipal Development District's Fiscal Year 2023-24 Proposed Budget. The vote was as follows: Ayes: President Brandon Capetillo, Vice President Laura Alvarado, Secretary David P. Jirrels, Director Donna Winfrey, Director Suhey Rios -Alvarez, Director Sarah Graham, Director Kenrick Griffith, Director Heather Betancourth, Director Jacob Powell, Director Mike Lester, and Director Shaunna Bernshausen Nays: None Other: Director Gary Englert (Absent) Approved RESOLUTION NO.462 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT, ESTABLISHING THE DATE, TIME AND PLACE FOR A PUBLIC 2023-2024 PROPOSED BUDGET: AND DATE THEREOF. 3. REPORTS HEARING ON THE FISCAL YEAR PROVIDING FOR THE EFFECTIVE 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. The Soft Opening of the Hotel and Convention Center was held on May 18, 2023, and there would be a formal Grand Opening organized by the Hyatt Regency sometime later this month. Mr. Brownlees stated the project would be closed out and finalized with Garfield Public/Private LLC and DPR Construction in the next few weeks. MDD Board Regular Meeting Minutes June 1, 2023 Page 5 of 5 President Brandon Capetillo requested Staff to present a final report to the Board once all payments have been paid. Mr. Brownlees concurred with his request. b. Receive the Economic Development Foundation's First and Second Quarter 2023 Reports. President and CEO of the Baytown West Chamber Economic Development Foundation ("EDF") B.J. Simon presented agenda item 3.b. He provided the Board with an overview of the Economic Development Foundation's First and Second Quarter 2023 Reports for the period of October 1, 2022, through March 31, 2023. Mr. Simon noted that the reporting categories were adopted by the Foundation back in 2006 for all of their contracts. However, after discussions with the new City Manager, it was discussed that there would be a new reporting format. As such, this would be the last time he would present these specific reports as presented that day. He then briefly walked through the report that was provided to each of the MDD Board of Directors. 4. MANAGER'S REPORT a. The next Baytown Municipal Development District meeting is scheduled for Thursday, July 6, 2023, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas, 77520. Interim Assistant General Manager Brant Gary reminded the Board that their next Baytown Municipal Development District meeting was scheduled for Thursday, July 6, 2023, at 4:30 P.M., in the Council Chamber located at City Hall. 5. ADJOURN With there being no further business to discuss, President Brandon Capetillo adjourned the June 1, 2023, MDD Board Regular Meeting at 5:20 P.M. It Angela J,*kson, City of Baytown