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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 L LIticia Br IIANT'll. i Ci t Y o I" Ba A s),