2015 03 05 MDD Minutes1%-IINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT
March 05, 2015
The Board of Directors of the Baytown Municipal Development District (MDD) i-net in a
Regular Meeting on Thursday, 1 larch 05. 2015, at 4:32 P.M_ in the Council Chamber of the
Baytown City Hall, 2401 Market Street, Baytown, Texas with the l'ollowing in attendance:
Stephen DonCarlos
President
Chris Presley
Vice President
Reggie Brewer
Secretary
Brandon Capetillo
Director
Gary Englert
Director
Mary Hernandez
Director
Robert Hoskins
Director
Dave J i rrel s
Director
David McCartney
Director
Terry Sain
Director
Roil Bottorns.
Acting General Manager
Ignacio Ramirez, Sr.
General Counsel
Leticia Brysch
Assistant Secretary
President DonCarlos convened the March 05, 2015, Municipal Development District (MDD)
Board Regular Meeting With a (ILlorurn present at 4:32 P.M., all members were present with the
exception of Director Renteria who was absent.
I. MINUTES
a. Consider approNing the minutes of the Municipal Development District Regular
Meeting held on .1 a n tj a r} 08, 2015.
A motion was Inadc by Director Mary Hernandez and seconded by Director Robert C. Hoskins
approving the January 08, 2015. MDD Board Regular Meet][I" 1111111ites. The vote was as
follows:
Ayes: Secretary Reggie Brewer, Director Brandon Capetilio. President Stephen
H. DonCarlos, Director Gary Englert, Director Mary Hernandez, Director
Robert C. Hoskins, Director David P. Jirrels, Director David McCartney,
Vice-President Chris Presley, Director Terry Sain
Nays: Noiic
Other: Director Mercedes Renteria III (Absent)
iNIDD Board Regular Meeting Minutes
March 05. 2015
Page 2 of 5
Approved
2. PROPOSED RESOLUTIONS
a. Consider a resolution authorizing an interlocal agreement with the City of Baytown
for the purchase of properly for an economic development project.
Acting General Manager Botton}s presented the agenda item and stated that Rcsolution No.
251 authorizes interlocal agreement with the City of Baytown for the purchase of property for an
economic development project at 1800 N. Alexander Drive in an amount not to exceed
5805,000. He stated that Mr. Lciper was able to negotiate a price of S2 per square foot for the
property and that City Council approved the agreement on February 26. 2015.
A motion was made by Secretary Reggie Brewer and seconded by Director Robert C. Hoskins
approving. Resolution No. 251. The vote was as follows:
Ayes: Secretary Reggie Brewer, Director Brandon Capetillo. President Stephen
H. DonCarlos, Director Gary En,glert, Director Mary Hernandez, Director
Robert C. Hoskins, Director David P. Jirrels, Director David McCartney,
Vice - President Chris Presley, Director Terry Sain
Nays: None
Other: Director Mercedes Rentcria III (Absent)
Approved
RESOLUTION NO. 251
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING THE PRESIDENT
TO EXECUTE AND THE ASSISTANT SECRETARY TO ATTEST TO AN
AGREEMENT FOR FUNDING THE PURCHASE OF PROPERTY FOR AN
ECONOMIC DEVELOPMENT PROJECT WITH THE CITY OF BAYTOWN;
AUTHORIZING PAYMENT IN THE AMOUNT NOT TO EXCEED EIGHT
HUNDRED FIVE THOUSAND AND NO/ 100 DOLLARS (8805.000.00); AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
3. DISCUSSIONS
a. Discuss use of h -IDD funds for Phase II of the Baytown Little Theater Renovation
Project.
Patti Meiners, President of the Baytown Little Theater, presented the board with an update on its
capital project. She stated than they have developed a plan to structure their building in phases.
She stated that the first phase would be the redeveloping and finalizing of the plans for the
MDD Board Re�-ular Meeting Minutes
March 05. 2015
Page 3 of 5
vacant property that was purchased and that the second phase would include the renovation of
the Wilkenfield building. She stated that it was brought to their attention that the funds allocated
for the project could possibly be released at the beginning of the project so that they could begin
with please 11 to maintain the structural integrity of the building instead of receiving it
incrementally after the project begun.
For clarity purposes, Mayer DonCarlos inquired if phase I would iticlude building on the
property across the street and if would be totally funded from BLT. In response to Mayor
DonCarlos's inquiry, Ms. Meiners stated that tlhe property would be totally funded through BLT.
Mayor DonCarlos also stated for clarity that the fitnds that the MDD board agreed to for this
project is requesting to be utilized to secure the Wilkenfield building until they receive funds to
begin the interior work. Ms. Meiners stated that Please III would include working on the interior
of the building.
During further discussion, an inquiry was made regarding the cost to do the roof. Ms. Meiners
stated that the most recent last unofficial bid that they received included work consisting of the
outer shell of the building, maintaining the roof, the structure of tlhe walls and some interior work
at an estimate of S2.5 million.
Director Capettllo inquired about the status of the fundraising efforts aside from the funds agreed
with MDD. In response to Director C apetillo's inquiry, Ms. Meiners stated that although they
have some fundraising funds other circumstances caused the fundraising efforts to be pushed to
tlhe side. Assistant General Manager, Kevin 'Troller stated that the last amount of Funds
mentioned was a pledge ol'approxiniatelV S,N0,000 and about $240,000 received.
During further discussion, Director Presley 111quired if the City would maintain a lien position oil
the $500,000 that will go towards Phase Pl of the Wilkenfield building and/or will there be
a timeline put in place for the improvements that need to be started. Mayor DonCarlos stated that
a lien was never discussed, but that it would be prudent to put a timefranhc on the
building. Director Presley further inquired if the BLT Would have the ability to sale the building
with the fund of 5500,000 that the City put toward it. Mayor DonCarlos inquired of the City
Attorney if any documentation was created in this regard. City Attorney, Ignacio Ramirez stated
that no documentation was formulated in this regards, but that staff was seeking direction from
the board. Mayor DonCarlos further stated that the agreement should be whereby tlhe City would
have tlhe first option to receive the building at a favorable cost. Director Presley further stated
that in regards to tlhe lien position that technically if BLT supplement with bank financing there
could be some stickiness in this regard. Ms. Meiners stated the original agreement was that the
5500,000 funds were originally for the building and the only difference between the original
agreement and now is that BLT is recluesting the funds upfront rather than increincntally to help
maintain the building. Director Presley stated that the difference is that the first right of refusal
would ofter the: City plenty of protection in that regard without the owner's second lien position.
Additionally, Director Presley stated that during an internal discussion and according to
administration that the roof and some of the improvements to the shell of the building could be
done for 5500,000 or less which also included all the guild out to the interior as well. Assistant
General Manager Troller stated that the last figure in this regard was 5520,000 for the roof and
the structural repairs.
MDD Board Regular Meeting iviinutes
March 05, 2015
Page 4 of 5
For clarity purposes with regards to the original intent of the 5500,000 agreement, City Attorney
Ramirez stated that the City did an agreement in April of 2013 with BLT called a first
amendment to the development project which rccluires that the: building be complete in ten years.
Additionally, he stated that a lien was done oil the #2 North Main property across the street
which is the vacant lot that was annexed. Director Brewer stated that lie's concerned that it's
taking BLT longer to meet their fundraising goal to complete the project and requested the value
amount of the building.
Mayor DonCarlos requested that BLT provide the board with the value amount of the building as
it is now and the value if the funds are spent on the roof and the structural repairs. He also
requested that BLT educate the board on their plans regarding fundraising efforts going forward,
as well as, the plans for the annexed portion and the redesign of the Wilkenfield building.
4. REPORTS
a. Receive the first quarter Economic Development Report for 2015.
Mr. BJ Simon presented the first quarter Economic Devclnpinent Report for 2015, covering
the period of October 01, 2015 through December 31, 2015. He stated that they responded to
65 requests for information and hosted four (4) site visits. He further stated that their
development efforts include continuing with the various program initiatives, as well as, attending
conferences and meetings with retailers and developers.
Director Presley requested that the EDF reach out to the BLT in regards to the economic
development aspect of the idle property as well as the new construction.
5. MANAGER'S REPORT
a. Reminder that the next Baytown Municipal Development District meeting is
scheduled for Thursday, April 02, 2015, at 4 :30 P.M., in the City Council Chamber, 2401
Market Street, Baytown, Texas, 77520.
Acting General Manager Bottoms presented the agenda item and stated that the next MDD
meeting is scheduled for April 02, 2015, at 4:30 P.M., in the City Council Chamber.
6. ADJOURN
A motion was made; by Director David McCartney and seconded by Vice- President Chris
Presley adjourning the March 05, 2015, MDD Board Regular ineeting. Tile vote was as follows:
Ayes: Secretary Reggie Brewer, Director Brandon Capetillo, President Stephen
H. DonCarlos, Director Gary Englert, Director Mary Hernandez, Director
Robert C. Hoskins, Director David P. Jirrels, Director David McCartney,
Vice - President Chris Preslcy, Director Terry Sain
Nays: None
N-IDD Board Regular Mecting Minutes
March 05, 2015
Page 5 of 5
Other: Director Mercedes Renteria III (Absent)
Approved
With there being no further business to discuss, President DonCarlos adjourned the March 05,
2015, Municipal Development District (MDD) Board Regular Meeting at 5:06 P.M.
Leticia Brysch, Ass
City of Baytown