2011 08 04 MDD MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT
August 04, 2011
The Board of Directors of the Baytown Municipal Development District (MDD) met in a
Regular Meeting on Thursday, August 04, 2011, at 4:31 P.M., in the Council Chamber of
the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in
attendance:
Stephen DonCarlos
Ruben Linares
David McCartney
Brandon Capetillo
Mary Hernandez
Dee Anne Navarre
Terry Sain
Scott Sheley
President
Vice President
Secretary
Director
Director
Director
Director
Director
Robert D. Leiper
General Manager
Kevin Troller
Assistant General Manager
Ignacio Ramirez, Sr.
General Counsel
Leticia Brysch
Secretary
President DonCarlos convened the August 04, 2011, Municipal Development District
(MDD) Board Regular Meeting with a quorum present at 4:31 P.M., all members were
present with the exception of Director Hernandez who arrived at 4:50 P.M., and Directors
Brewer, Hoskins, and Renteria who were absent.
1. PUBLIC HEARINGS
a. Conduct Public Hearing for the Baytown Municipal Development District
2011 -12 Proposed Budget - Finance.
At 4:32 P.M., Mayor DonCarlos opened the public hearing concerning the Baytown
Municipal Development District's 2011 -2012 Proposed Budget.
General Manager Leiper stated that the budget was discussed at the July 07, 2011 with no
changes being made and stated that the highlights of the new projects in the proposed
budget are as follows:
• One time investment of the Baytown Little Theater for $500,000;
• GLO /CMP Grant Match of $54,000;
• Basketball Court Cover for NC Foote Park for $75,000;
• Eddie Huron Park Phase II for $92,689;
• Duke Hill Quick Soccer Court for $8,030; and
• City Hall Courtyard Improvements Phase I for $61,283
General Manager Leiper stated that the approval amount being requested is
for $4,514,057 that will carry forward and adding a new allocation amount of $5,347,197
having a total of $9,861,254 in the fund balance.
Mr. Chris Presley registered to speak at the public hearing and stated that he is requesting
a non binding resolution where the MDD Board would resolve to supplement the project
with soft funding (some form of a repayable loan) so that he may have something to show
potential lenders.
Mayor DonCarlos closed the public hearing at 4:50 P.M.
2. PROPOSED RESOLUTIONS
a. Consider Adopting the Baytown Municipal Development District 2011 -12
Proposed Budget - Finance.
Mayor DonCarlos presented the agenda item and stated that the Resolution adopts the
Baytown Municipal Development District 2011 -12 Budget.
A motion was made by Director David McCartney and seconded by Director Brandon
Capetillo approving Resolution No. 166. The vote was as follows:
Ayes: Director Brandon Capetillo, President Stephen H. DonCarlos,
Director Mary Hernandez, Director Ruben Linares, Director David
McCartney, Director Dee Anne Navarre, Director Terry Sain, and
Vice President Scott Sheley
Nays: None
Other: Director Reggie Brewer (Absent), Director Robert Hoskins
(Absent), and Director Mercedes Renteria (Absent)
Approved
RESOLUTION NO. 166
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT ADOPTING A
BUDGET FOR THE ENSUING FISCAL YEAR, BEGINNING
OCTOBER 1, 2011, AND ENDING SEPTEMBER 30, 2012; AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
3. REPORTS
a. Receive the Draft Phase Two Housing Study from the Economic
Development Foundation - Administration.
General Manager Leiper presented the agenda item and stated that in 2008, the Baytown
Municipal Development District (MDD) tasked the Baytown West Chambers County
Economic Development Foundation (EDF) to study retail development for potential
diversification and ability to increase the amount of upscale housing in Baytown. General
Manager Leiper stated that phase one of this study took place in 2010, and consisted of
(1) having the EDF survey Baytown area employees who chose to not live in Baytown
and find out why this was the case, and (2) examining the potential impacts of tighter
windstorm requirements on the development of residential housing within the City; and
phase two of the study focused on qualitative factors that impact the market for upscale
housing in Baytown, as well as, the competitive landscape for surrounding areas and
offers strategies to help Baytown successfully attract a larger market of upscale housing.
General Manager Leiper indicated that in the year of 2000 the average land value was
about $60,000 and now it is about $109,000.
Mr. B.J. Simon, a representative from the EDF, introduced Mr. Steve Spillette and
Lawrence Dean, representatives from CDS Market Research to discuss the results from
the housing study that was completed.
Mr. Spillette presented an overview of the housing study and stated that the type of retail
that the City of Baytown has matched with its demographic statistics shows that in order
to diversify different retail the city needs to attract more expensive single family housing.
Mr. Lawrence Dean stated that as it relates to the housing study, 1,375 Baytown area
employees who do not necessarily live in Baytown but they work in Baytown, were
provided an online survey through their employers. He indicated that a significant portion
of the group of respondents stated that (a) within 24 to 36 months they would be looking
to purchase a different home from where they are located now and (b) that home would
be a for sale home priced at $200,000 or above. Mr. Dean stated that approximately '/ of
the respondents that fit those two criteria stated that they would be interested in living in
Baytown and that the information obtained from the criteria predicated the phase two
study of what are some strategies of how can the leakage of residents be captured and
how to keep them in Baytown.
During the discussion a question was asked in regards to what percentage of the people
that were surveyed currently live in Baytown and met the two criteria would be interested
in continuing to live in Baytown. Mr. Dean stated that percentage of those surveyed that
currently lived in Baytown was 53% and the 47% remaining lived in 70 different zip
codes around the Houston area.
Mr. Dean continued the presentation and stated that the primary objectives of the phase
two study was to look at qualitative and quantitative factors impacting the market for
upscale housing. He indicated that interviews were done with developers, home builders,
and buyers that were active in the Houston market but to include those active and not
active in Baytown. Mr. Dean stated that various focus groups were included in the study
such as Baytown area realtors, human resource managers of local employees, and
Baytown area employees.
Mr. Dean stated that some of the opinions from the developers in regards to Baytown
were that it was off many of the Houston area developer's radar and was perceived as a
local market. He indicated that some of the strengths were that Baytown has a strong
local employment, a strong sense of community, an ease of travel and that the proximity
to water amenities and open space was underplayed. He also indicated that some of the
weaknesses were that Baytown has an industrial area image which could be an asset as
well, has poor aesthetic appearance, lacks definable identities in the region except as an
industrial center, perception of crime and poorly performing schools, lacks established
upscale communities, and that it has limited quality retail and services. He stated that
some of the competitive communities are Mont Belvieu/Barbers Hill ISD, Clear
Lake/League City, and Atascocita/Lake Houston. He stated that GCCISD has
unpublicized strengths and in comparison to Barbers Hill, they don't have better test
score performances and have higher tax rates. Additionally during the discussion, he
stated that the focus groups stated that the existing homes and neighborhoods lack desired
features and amenities; desired larger lots but not necessarily exurban and the quality of
open space and recreation; there were a lack of certain product types such as patio homes,
townhomes, and gated communities; and the architectural and structure finishes were
important. Some of the drawbacks to many of the existing neighborhoods were the
distance to retail and services and the perceived lack of community initiative for
improvement.
Mr. Spillette stated that the objective is to increase total number of upscale housings
using a multifaceted approach, which is most effective if implemented collectively and
requires major commitment of effort and resources over long period of time and listed the
following recommended strategies as follows:
• Identify the infill areas that are located within good school zones and have trade
offs for new housing development such as adding sidewalks, curbs, gutters,
having deed restricted neighborhoods with home owners association (HOA) and
strict building codes;
• Promote master planned developments in the northeastern portion of Baytown
which is generally the area east of Garth Road and north of I -10;
• Have incentives such as an infrastructure and amenity reimbursement program
and other forms of agreements.
• Commit to building things up front such as parks and extended water lines so the
developer doesn't have to pay that cost;
• Select a parcel and begin the planning and infrastructure amenity development of
that parcel and provide it at low market rate to a developer;
• Promote existing neighborhoods with active enforcement of codes;
• Promote school sites in new development areas; and
• Get the community involved in the clean up and landscaping improvements
Mr. Spillette stated that if all of the strategies were to take place, by 2020 there could be
roughly 1,000 additional affluent households with $100,000 incomes generating a
$41,000,000 increase in retail spending and approximately $370,000 in annual sales tax.
General Manager Leiper stated that a finalized report with strategies will be brought back
before the MDD Board.
4. BUSINESS ITEMS
a. Election of Officers - Assistant Secretary.
General Manager Leiper presented the agenda item to consider the election of officers for
President, Vice President, and Secretary; and the appointment of an Assistant Secretary.
He stated that the current officers are Stephen DonCarlos as the President, Ruben Linares
as the Vice President, Reggie Brewer as the Secretary, and the City Clerk as the Assistant
Secretary. Director Capetillo made a motion that all active positions remain the same.
Director Navarre nominated Director Sheley as the Vice President.
A motion was made by Director Brandon Capetillo and seconded by Director Dee Anne
Navarre approving that all active positions remain the same with the amendment of
Director Sheley as Vice President. The vote was as follows:
Ayes: Director Brandon Capetillo, President Stephen H. DonCarlos,
Director Mary Hernandez, Director Ruben Linares, Director David
McCartney, Director Dee Anne Navarre, Director Terry Sain, and
Vice President Scott Sheley
Nays: None
Other: Director Reggie Brewer (Absent), Director Robert Hoskins
(Absent), and Director Mercedes Renteria (Absent)
Approved
5. MANAGER'S REPORT
There was no report.
6. ADJOURN
A motion was inade by Director David McCartney and seconded by Director Brandon
Capetillo adjourning the AugLISt 04, 2011, NIDD Board RCgUlar Meeting. The vote was
as, follows:
Ayes: Director Brandon Capetillo, President Stephen H. DonCarlos,
Director Mary Hernandez, Director Ruben Linares, Dircctor David
McCartney, Director Dee Anne Nawn-re, Dircclor Teeny Bahl,, and
Vice President Scott Slicley
Nays: None
Other Director Rcggle Brewer (Absent), Director Robert Hoskins
(Absent), and Dircctor Mercedes Rentcria (Absent)
Approved
With there being ncr further bLIS111CSS try diSCUSS, President Don( arlos actiourned the
AugLISt 04, 2011, Municipal Development District (M'DD) Board Regular Mecting at
6:05 P.NL
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