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2016 10 11 MDD Minutes, SpecialMINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT October 11, 2016 The Board of Directors of the Baytown Municipal Development District (MDD) met in a Special Meeting on Tuesday, October 11, 2016, at 5:04 P.M., in the Council Chamber of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance: Stephen DonCarlos President Chris Presley Vice President Brandon Capetillo Director Mary Hernandez Director Dave Jirrels Director David McCartney Director Terry Sain Director Rick Davis General Manager Ignacio Ramirez, Sr. General Counsel Leticia Brysch Assistant Secretary President DonCarlos convened the October 11, 2016, Municipal Development District (MDD) Board Special Meeting with a quorum present at 5:04 P.M., all members were present with the exception of Directors Brewer, Englert, Hoskins, and Renteria who were all absent. 1. MINUTES President DonCarlos recommended that agenda items La. and I.b. be considered together. a. Consider approving the minutes of the Municipal Development District Board Regular Meeting held on September 01, 2016. b. Consider approving the minutes of the Municipal Development District Board Regular Meeting held on August 04, 2016. A motion was made by Director Mary Hernandez and seconded by Director David McCartney approving the August 04, 2016, and the September 01, 2016, MDD Board Regular Meeting minutes. The vote was as follows: Ayes: Director Brandon Capetillo, President Stephen H. DonCarlos, Director Mary Hernandez, Director David P. Jirrels, Director David McCartney, Vice - President Chris Presley, Director Terry Sain Nays: None MDD Board Special Meeting Minutes October 11, 2016 Page 2 of 8 Other: Secretary Reggie Brewer (Absent), Director Gary Englert (Absent), Director Robert C. Hoskins (Absent), Director Mercedes Renteria III (Absent) Approved 2. PROPOSED RESOLUTIONS a. Consider a resolution authorizing the Termination of the Development Project Contract with The Baytown Little Theater Incorporated. General Manager Davis presented the agenda item and stated that Resolution No. 295 authorizes the Termination of the Development Project Contract with The Baytown Little Theater Incorporated ( "BLT "). He stated that the BLT abandoned its plan to renovate the 2013 Property and built a theater on the 2012 Property, as such, the BLT has requested that the Development Project Contract be terminated and the liens be released. Director Presley inquired of the future plans for the abandoned building. Jan Herring- Seeley registered to speak regarding agenda item 2.a. and stated that she's the current president of the BLT. She stated that the BLT requested the termination of the development project contract between MDD and the BLT in the amount of $500,000, as well as, the simultaneous release of the liens on BLT's property on Texas Avenue and South Main. She stated that the agreement was for assistance to build a brand new theater and later the renovations of the Wilkenfield's building, but it resulted in BLT's realization that these multi - million dollar projects were unrealistic; therefore, two (2) years ago the decision was made to invest in a 6,000 square feet building at 2 East Texas Avenue instead. Ms. Seeley further stated that if the BLT decides to develop and need the City's support, they will discuss options of opportunity at that time. In regards to Director Presley inquiry regarding the future plans of the abandoned Wilkenfield's building, Ms. Seeley stated that according to various contractor's, it would be more expensive to renovate than it would be to demolish and reproduce the building; therefore, they are looking at demolition. A motion was made by Vice - President Chris Presley and seconded by Director David McCartney approving Resolution No. 295. The vote was as follows: Ayes: Director Brandon Capetillo, President Stephen H. DonCarlos, Director Mary Hernandez, Director David P. Jirrels, Director David McCartney, Vice - President Chris Presley, Director Terry Sain Nays: None Other: Secretary Reggie Brewer (Absent), Director Gary Englert (Absent), Director Robert C. Hoskins (Absent), Director Mercedes Renteria III (Absent) Approved RESOLUTION NO. 295 MDD Board Special Meeting Minutes October 11, 2016 Page 3 of 8 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING THE GENERAL MANAGER TO EXECUTE AND THE ASSISTANT SECRETARY TO ATTEST TO THE TERMINATION OF THE DEVELOPMENT PROJECT CONTRACT BETWEEN THE BAYTOWN LITTLE THEATRE INCORPORATED AND THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT; MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. President DonCarlos recommended that agenda items 2.b. and 2.c. be considered together. b. Consider a resolution authorizing the Economic Development Basic Services Contract with Baytown/West Chambers County Economic Development Foundation. C. Consider a resolution authorizing the Economic Development Special Services Contract with Baytown/West Chambers County Economic Development Foundation. General Manager Davis stated that the basic and special services contracts are similar to the ones in the past. There was no further discussion regarding the two (2) agenda items. A motion was made by Director Brandon Capetillo and seconded by Director Terry Sain approving Resolution No. 296 and Resolution No. 297. The vote was as follows: Ayes: Director Brandon Capetillo, President Stephen H. DonCarlos, Director Mary Hernandez, Director David P. Jirrels, Director David McCartney, Vice - President Chris Presley, Director Terry Sain Nays: None Other: Secretary Reggie Brewer (Absent), Director Gary Englert (Absent), Director Robert C. Hoskins (Absent), Director Mercedes Renteria III (Absent) Approved RESOLUTION NO. 296 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING THE GENERAL MANAGER TO EXECUTE AND THE ASSISTANT SECRETARY TO ATTEST TO AN ECONOMIC DEVELOPMENT CONTRACT BETWEEN THE BAYTOWN AREA/WEST CHAMBERS COUNTY ECONOMIC MDD Board Special Meeting Minutes October 11, 2016 Page 4 of 8 DEVELOPMENT FOUNDATION AND THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT FOR ECONOMIC DEVELOPMENT SERVICES; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. RESOLUTION NO. 297 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING THE GENERAL MANAGER TO EXECUTE AND THE ASSISTANT SECRETARY TO ATTEST TO AN ECONOMIC DEVELOPMENT SPECIAL SERVICES CONTRACT BETWEEN THE BAYTOWN AREA/WEST CHAMBERS COUNTY ECONOMIC DEVELOPMENT FOUNDATION AND THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT FOR ECONOMIC DEVELOPMENT SERVICES; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. President DonCarlos stated that agenda items 2.d. and 2.e. would be considered together. d. Consider a resolution reprogramming FY2016 -2017 budget funds to provide additional funding for the purchase of an Aqua Loop /Aqua Drop Slide for Pirates Bay Water Park. e. Consider a resolution authorizing the First Amendment to the Interlocal Agreement for Funding of Pirates Bay Water Park Aqua Loop Project with the City of Baytown for additional funding for the addition of an Aqua Loop /Aqua Drop slide. Director of Parks and Recreation, Scott Johnson presented agenda items 2.d. and 2.e. He stated that after the completion of the budget staff noticed that additional funds were needed to complete the project and the options were to request additional funds or eliminate the aqua drop slide from the aqua loop, in which the request for additional fund was chosen. Deputy General Manager Bottoms stated that the majority of the costs for the project are funded from the Pirates Bay fund and the original fund request was made for $250,000 to assist with such. He stated that because the costs came in higher than originally expected an additional $450,000 is being requested, in which those dollars will be reprogrammed from the $500,000 from the BLT. Director Capetillo inquired of the reasoning for the significant increase amount. In response to Director Capetillo's inquiry, Mr. Johnson stated that the reason for increased amount was because the original estimate was not as accurate. Additionally, Mr. Johnson stated that this project will be built by the same contractor used to build Pirates Bay and Calypsco Cove and will include all new parts, as well as, be completely designed to accommodate the future third slide. Director Jirrels inquired if the park generated enough funds to cover the costs for the additions by itself up until now being that the MDD hasn't funded anything until now. Mr. Johnson stated that the funds from the park partially pay for the last expansion, but that the majority was paid MDD Board Special Meeting Minutes October 11, 2016 Page 5 of 8 for through MDD and Aquatic Bonds. Mr. Johnson further stated that the funds received from the park pays for the operations costs, maintenance, and some is put towards expansion costs. Additionally, Mr. Johnson stated that the total cost for the project is $2.6 million which includes the two slides and the setup for the third slide, which will allow for an additional 150 participants in the park. Director Presley inquired if an increase in the ticket price was considered. Mr. Johnson stated that staff discussed a possible price increase on the weekend due to it being constantly busy. General Manager Davis stated that a note to remember is that competition emerged within the last 12 months to the Pirates Bay Park and that there's a life span associated with interest of the park, in which, as interest arise it must be maintained. Additionally, General Manager Davis noted that one of the reasons for the escalated costs includes the consideration of the integrity required to ensure safety while taking on the daily usage of the ride. A motion was made by Director David P. Jirrels and seconded by Director Mary Hernandez approving Resolution No. 298 and Resolution No. 299. The vote was as follows: Ayes: Director Brandon Capetillo, President Stephen H. DonCarlos, Director Mary Hernandez, Director David P. Jirrels, Director David McCartney, Vice - President Chris Presley, Director Terry Sain Nays: None Other: Secretary Reggie Brewer (Absent), Director Gary Englert (Absent), Director Robert C. Hoskins (Absent), Director Mercedes Renteria III (Absent) Approved RESOLUTION NO. 298 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT MAKING A CHANGE IN THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT'S FISCAL YEAR 2016 -2017 BUDGET IN ORDER TO REPROGRAM FUNDS FOR THE PURCHASE OF AN AQUA LOOP /AQUA DROP SLIDE FOR PIRATES BAY WATER PARK; MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. RESOLUTION NO. 299 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING THE PRESIDENT TO EXECUTE THE FIRST AMENDMENT TO THE INTERLOCAL AGREEMENT FOR FUNDING OF PIRATES BAY WATER PARK AQUA LOOP PROJECT WITH THE CITY OF BAYTOWN; AUTHORIZING MDD Board Special Meeting Minutes October 11, 2016 Page 6 of 8 PAYMENT OF AN ADDITIONAL AMOUNT NOT TO EXCEED FOUR HUNDRED FIFTY THOUSAND AND NO /100 DOLLARS ($450,000.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. f. Consider a resolution authorizing the First Amendment to the Interlocal Agreement with City of Baytown for the funding of property acquisition costs related to the San Jacinto Boulevard Project. Deputy General Manager Bottoms presented the agenda item and stated that the original agreement authorized up to $500,000 for the acquisition of the property needed for the San Jacinto Boulevard Project. He stated that the HCAD values used for the acquisition were less than what the property was expected to be purchased for and that there were some total buy out to properties that had to be done that were not originally anticipated; therefore, an additional $250,000 is being requested for land acquisition costs. A motion was made by Director Terry Sain and seconded by Vice - President Chris Presley approving Resolution No. 300. The vote was as follows: Ayes: Director Brandon Capetillo, President Stephen H. DonCarlos, Director Mary Hernandez, Director David P. Jirrels, Director David McCartney, Vice - President Chris Presley, Director Terry Sain Nays: None Other: Secretary Reggie Brewer (Absent), Director Gary Englert (Absent), Director Robert C. Hoskins (Absent), Director Mercedes Renteria III (Absent) Approved RESOLUTION NO. 300 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING THE PRESIDENT TO EXECUTE THE FIRST AMENDMENT TO THE INTERLOCAL AGREEMENT WITH CITY OF BAYTOWN FOR THE FUNDING OF PROPERTY ACQUISITION COSTS RELATED TO THE SAN JACINTO BOULEVARD PROJECT; AUTHORIZING PAYMENT OF AN ADDITIONAL AMOUNT NOT TO EXCEED TWO HUNDRED FIFTY THOUSAND AND NO /100 DOLLARS ($250,000.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 3. EXECUTIVE SESSION MDD Board Special Meeting Minutes October 11, 2016 Page 7 of 8 Director Presley recused himself from agenda items 3.a. and 3.b. and stated that he filed a disclosure form with the City Clerk's office. a. Recess into and conduct an executive session pursuant to Section 551.071 and Section 551.087 of the Texas Government Code (i) to deliberate the offer of a financial or other incentive to one or more business prospects that the Board seeks to have locate, stay, or expand in the Arts, Cultural and Entertainment Zoning District and with which the governmental body is conducting economic development negotiations and (ii) to seek the advice of the City Attorney on legal matters related thereto. At 5:34 P.M., President DonCarlos recessed into and conducted an executive session pursuant to Section 551.071 and Section 551.087 of the Texas Government Code (i) to deliberate the offer of a financial or other incentive to one or more business prospects that the Board seeks to have locate, stay, or expand in the Arts, Cultural and Entertainment Zoning District and with which the governmental body is conducting economic development negotiations and (ii) to seek the advice of the City Attorney on legal matters related thereto. At 6:17 P.M., Mayor DonCarlos reconvened the Open Meeting of the Municipal Development District Special Meeting and announced that in accordance with Section 551.102 of the Texas Open Meetings Act, no action was taken in the Executive Session. b. Consider a resolution authorizing an interlocal agreement with the City of Baytown to fund an economic development project in the Arts, Cultural and Entertainment Zoning District. Mayor DonCarlos stated that the parameters of this agreement were discussed during the executive session. A motion was made by Director Terry Sain and seconded by Director David McCartney approving Resolution No. 301. The vote was as follows with the exception of Director Presley who recused himself from the agenda item: Ayes: Director Brandon Capetillo, President Stephen H. DonCarlos, Director Mary Hernandez, Director David P. Jirrels, Director David McCartney, Director Terry Sain Nays: None Other: Secretary Reggie Brewer (Absent), Director Gary Englert (Absent), Director Robert C. Hoskins (Absent), Vice - President Chris Presley (Not Present for Vote), Director Mercedes Renteria III (Absent) Approved RESOLUTION NO. 301 MDD Board Special Meeting Minutes October 11, 2016 Page 8 of 8 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 AN ECONOMIC DEVELOPMENT PROJECT WITH THE CITY OF BAYTOWN; AUTHORIZING PAYMENT IN THE AMOUNT NOT TO EXCEED TWO HUNDRED TEN THOUSAND AND NO /100 DOLLARS 210,000.00); AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 4. MANAGER'S REPORT a. Reminder that the next Baytown Municipal Development District meeting is scheduled for Thursday, November 03, 2016, at 4:30 P.M., in the City Council Chamber, 2401 Market Street, Baytown, Texas, 77520. There was no report. Director Presley returned to the meeting at 6:18 P.M. 5. ADJOURN A motion was made by Director David McCartney and seconded by Vice - President Chris Presley adjourning the October 11, 206, MDD Board Special meeting. The vote was as follows: Ayes: Director Brandon Capetillo, President Stephen H. DonCarlos, Director Mary Hernandez, Director David P. Jirrels, Director David McCartney, Vice - President Chris Presley, Director Terry Sain Nays: None Other: Secretary Reggie Brewer (Absent), Director Gary Englert (Absent), Director Robert C. Hoskins (Absent), Director Mercedes Renteria III (Absent) Approved With there being no further business to discuss, President DonCarlos adjourned the October 11, 2016, Municipal Development District (MDD) Board Special Meeting at 6:19 P.M. Le icia Brysch, Assistant SUsetary City of Baytown