Loading...
2017 06 01 MDD MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT June 01, 2017 The Board of Directors of the Baytown Municipal Development District (MDD) met in a Regular Meeting on Thursday, June 01 2017 at 431 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 Reggie Brewer Secretary Laura Alvarado Director Charles Johnson Director Gary Englert Director Mary Hernandez Director Robert Hoskins Director David McCartney Director Terry Sam Director Rick Davis General Manager Ignacio Ramirez, Sr General Counsel Leticia Brysch Assistant Secretary President DonCarlos convened the June 01 2017 Municipal Development Distnct (MDD) Board Regular Meeting with a quorum present at 4.31 P M. all members were present with the exception of Director Jiaels who was absent a Discuss the redevelopment of the Brunson Theater Building, located at 315 W Texas Avenue, and related off site infrastructure and parking improvements General Manager Davis presented the agenda item and stated that the three (3) objectives for this project is 1) to address proactively the coordination of the historic downtown and create a municipal presence as part of the main street program on Texas Avenue 2) inspire economic development in the downtown area and 3) preserve a historic landmark on Texas Avenue He stated that the proposal is to utilize the front half of the Brunson budding for the placement of the city's tourism office, which may in the future include marketing staff for downtown events and utilize the back half of the building which is approximately more than 50% of the building for the placement of office incubator space He stated that BJ Simon would provide more detailed information to address the questions from the previous meeting associated with what the program looks like in other cities along with the potential revenues and uses Additionally, he stated that Drew Potts the Purchasing and Facilities Manager would go over the estimated costs, but further noted that the more concrete numbers would be available once moving towards the design of the project MDD Board Regular Meeting Minutes June 01, 2017 Page 2 of 7 Mr Potts stated that Phase I of the project is basically putting the building back together which includes the roof the elechical, the plumbing the infrastructure of the budding, the water and sewer the walls the restrooms, and bring the flooring back up to level He stated that the projected costs for Phase 1 would be $1 5 million of which $200,000 of such would be for the design and engineering costs Additionally he noted that the mfrastmcture for the parking, the landscaping, and the lightning would be an additional $600,000 Director Sam inquired if the cost would include the balcony and if elevators were included in order to meet ADA requirements In response to Director Sam's inquiry, Mr Potts stated that the balcony would be included but that elevators were not included in this proposal Director Presley noted that there are rules and regulations regarding mezzanine, which aren't full floors, which typically don't have to meet ADA requirements Director Alvarado further noted that there can be certain areas designated for certain ADA requirements Additionally General Manager Davis noted that his understanding of having an elevator necessity is driven by whether there's something being offered in the mezzanine area or conference room that cannot be provided on the bottom level, which will not be the case of this building Director Presley stated that the roof plan will have to be stamped by a licensed engineer and further inquired if an alternate route from the normal RFQ and A&E Committee process could be taken such as, going under the authority of the city manager's office to save on the design costs Mr Potts stated that staff will explore the possibilities for costs savings During further discussion Mr BJ Simon provided an overview of the incubator program and stated that when they audit the entrepreneurship ecosystem in Baytown the number of elements that currently exist includes the incubator without walls program which is essentially a referral service provided through the EDF, networking with various organizations to promote their business utilizing capitalization to incentivize economic development and the adoption of vanous committees that target the development of the community infrastructure He noted that an incubator is defined as a physical location that provides a defined set of services to individuals or small companies wluch may include specific types of office space flexible lease terms, access to technology financing technical assistance and proximity to other entrepreneurs He also noted that there are some gaps in the different types of space that an incubator can fill He stated according to the data from the Kauffman Foundation which is the prenuer resource institution in the United States, that the pre -dominate type of incubator is mixed use followed by technology and then by manufactunng, which was at 3% He noted that the manufacturing percentage was very low because of the physical space acquired to facilitate manufacturing Mr Simon provided an appropriate example of the economic growth and business incubator (EGBI) in Austin, Texas that showed types of services from a micro to macro perspective that an entrepreneur could access at an incubator He noted that the example was of co working space from a daily rate to a monthly part time or full time rate that included shared desk/cubicle, a phone WiFi fax and printer mail receipt, conference room access and staff counseling He stated that also included in the example was EGBI rental rates for dedicated spaces that varied according to the size of the cubicle or office space as well as, conference and training room rates that accompany various number of seating according to membership type Additionally Mr MDD Board Regular Meeting Minutes June 01 2017 Page 3 of 7 Simon stated that the next step for the City of Baytown would be to develop an incubator concept relative to the needs of this area President DonCarlos inquired if this program was the type where incubator spaces partner with local education institutions, because he wants to have a full service business incubation where people have the ability to connect with experts that will direct them to capital sources, trainings, workforce development and permanent office space resulting in their idea converting into a business Mr Simon noted that incubators allowed at colleges and universities do well in which President DonCarlos's concept would be one of the best practices being that the small business development center framework is already at Lee College He further stated that elements can be easily integrated if there's space and because there's no physical space in the small business development center for incubation this redevelopment would provide for such by integrating what the EDF have been doing virtually and develop the programming. Director Alvarado stated with regards to filling the office spaces that in doing research whoever is running the program is basically serving as the landlord and further inquired if there was currently resources to have a person to serve in such capacity In response to Director Alvarado's inquiry, Mr Simon stated that this design element would have to be discussed as part of the program development Director Alvarado noted that some of the business owners on Texas Avenue are excited about the opportunity of tourism possibly being in the area as it will bring more foot traffic and further stated that a suggestion was posed to her about the possibility of moving the utility billing department on Texas Avenue being that they have constant foot traffic which will allow customers to experience downtown Mr Simon noted that having a municipal presence in the area is a known best practice but further stated that entrepreneurship and development would be separate from what Director Alvarado mentioned regarding the utility billing department Additionally he noted that the best practice is to also not have a passive incubator, as this incubator space will not be limited to Baytown only, but rather the Houston Metro area Director Brewer stated that the MDD Board is tasked with deciding whether or not to provide the funds for the space for such project but there were many unanswered questions as to how the program will be developed once the space is secured which will not be the responsibility of the MDD Board and further inquired if there was someone assigned to such task General Manager Davis stated that there's considerable amount of work to do and although this has never been done by the City of Baytown there's optimism that it will be successful General Manager Davis stated that the proposal was submitted to the MDD Board, because staff was driven to stop the degradation of the central business district preserve an historical landmark, and enhance economic development He further stated that currently they have not discussed this project with Lee College nor has anyone been assigned to manage this program as more discussion has to be done Additionally General Manager Davis stated that staff needed to receive an approval from the MDD Board before moving forward with the preservation of the building. Director McCartney noted that the main intent of the project is to preserve the budding and if the incubator phase does not succeed than staff will move forward with another option. Director Brewer further noted that he's in support of preserving the building but that he also wanted to be clear to the people with ingmnes regarding the specifics of the building that at this point there's MDD Board Regular Meeting Minutes Jane 01 2017 Page 4 of 7 no certainties but rather a chance that will put the building in good shape of not being an eye sore General Manager Davis stated that some of the scrutiny that may be heard is related to the options that could be exercised on the building such as demolishing it, in which there's a misconception that demolition is free. He noted that its expensive to demolish a building and remediate the damage left from such He stated that they didn't consider bringing demolition as an option for the board to consider but started with the assumption that the board wanted to preserve the downtown area, whereas the Brunson Theater is a landmark in the community Director Presley noted that as the council member for District 2 he doesn't hear or see any scrutiny in this district but rather positivity to repair the building and have it occupied PROPOSED RESOLUTION a Consider a resolution reprogramming FY2016-2017 budget funds to provide additional fundmg for the Brunson Theater Redevelopment Project A motion was made by Vice -President Chris Presley and seconded by Director David McCartney approving Resolution No 306 regarding agenda dem 2.a. The vote was as follows Ayes Secretary Reggie Brewer Director Charles Johnson, President Stephen H DonCarlos, Director Gary Engled Director Mary Hernandez, Director Robert C Hoskins, Director David McCartney Vice -President Chris Presley Director Laura Alvarado, Director Terry Sam Nays None Other Director David P Jirrels (Absent) Approved RESOLUTION NO 306 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT MAKING A CHANGE IN THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICTS FISCAL YEAR 2016 2017 BUDGET IN ORDER TO REPROGRAM FUNDS FOR THE BRUNSON THEATER REDEVELOPMENT PROJECT MAKING OTHER PROVISIONS RELATED THERETO, AND PROVIDING FOR THE EFFECTIVE DATE THEREOF b Consider a resolution authorizing an interlocal agreement with the City of Baytown to fund a professional services agreement for the redevelopment of the Brunson Theater located at 315 W Texas Avenue MDD Board Regular Meeting Minutes June 01 2017 Page 5 of 7 A motion was made by Vice President Chris Presley and seconded by Director David McCartney approving Resolution No 307 regarding agenda item 2.b The vote was as follows Ayes Secretary Reggie Brewer Director Charles Johnson, President Stephen H DonCarlos, Director Gary Englert Director Mary Hernandez, Director Robert C Hoskins, Director David McCartney Vice -President Chris Presley Director Laura Alvarado, Director Terry Sam Nays None Other Director David P Jirrels (Absent) Approved RESOLUTION NO 307 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 A PROFESSIONAL SERVICES AGREEMENT FOR THE REDEVELOPMENT OF THE BRUNSON THEATER WITH THE CITY OF BAYTOWN AUTHORIZING PAYMENT IN THE AMOUNT NOT TO EXCEED TWO HUNDRED THOUSAND AND NO/100 DOLLARS ($200,000.00), AND PROVIDING FOR THE EFFECTIVE DATE THEREOF President DonCarlos stated that for years there's been a split of the community in support of or against the rehabilitation of the Brunson Theater with many wondering why spend funding on an old building. He stated that from his stand point the attempt is to bring new life to this area of the city and if the Branson Theater is critical to such, than it's worth saving REPORT Receive the Economic Development Foundation's 2016 Annual Report Mr Simon presented the Economic Development Foundation's 2016 Annual Report and stated that their programs of work included the following stimulate and encourage business, workforce analysis and development, facilitate tax incentive programs conduct educational and informational seminars support foreign trade zones, research and economic data clearinghouse collaborate w/public officials and ED allies, and promote regional tourism He stated that in the year 2016, they responded to 324 requests for information and hosted 43 site visits that included the categories of manufacturing logistics and distnbution/transportatwn, and retail/hospitality/residential development He noted that the manufacturing category was the well represented with categories of petrochemical. OCTG Pipe and advanced manufacturing. Additionally he noted that walk ins visitors increased dramatically within the last four (4) to five (5) years MDD Board Regular Meeting Minutes June 01, 2017 Page 6 of 7 Mr Simon stated that they hosted several international prospects and supported projects that represented $14 billion in investments, m well as created 525 Jobs He stated that they also hosted in the year 2016 the 3rd annual Industrial Expansion Symposium He noted that some of the emerging employers in the year 2016 included Ikea, Geodis, Tidal Tank RedBull Katoen Nane, Ravage, SBE Raven Topsail Energy and Duna USA Addihonally, he noted that the year 2017 is peak for construction, but will decrease after the year ends During further discussion Mr Simon noted for informational purposes that the City of Baytown started its retail development strategy in the year 2008, whereas a commercial market analysts was completed and later updated in the year 2013 He stated that substantial retail development of over two (2) million square feet of retail space has emerged since 2008 He stated that they support the continued developments within a 15 mile radius from Baytown to include some of the Mont Belvieu area in which they supported two TIGER grant applications for Chambers County and Chambers County Improvement District (CCID) #1 Mr Simon noted that they've undertaken a significant labor market analyses effort in which they will develop job profiles to understand labor dynamics particular to in/out migration and will be presented with the third quarter report He stated that on a daily basis the average wage for people in the primary zip code areas of 77520 77523 is $78,000, which is compared to the national average of $57,000 He stated that the growth trend for Chambers County is approximately 17 5% and noted that in west Chambers County it will be exceeded He further noted that the average wage per Job in the entire Chambers County is $59,380 Mr Simon stated that in the year 2004 the EDF worked with the City of Baytown and adopted a strategic plan with the area of focus on advanced manufacturing energy logistics and distribution as well as retail and restaurants He stated that in the yew 2010 updates were made to the plan that included adding the area of healthcare as an important focus as well as putting emphasis on improvements in the areas of workforce development, sites and infrastructure economic development, marketing and image and the quality of life He stated that in the year 2016 they made 28 referrals to various entities for business development and noted that these elements can be easily integrated into a physical incubation program Additionally he stated that they continue to work on the areas of the strategic plan as the city continues to grow MANAGER'S REPORT a Reminder that the next Baytown Municipal Development District meeting is scheduled for Thursday, July 06, 2017 at 4.30 P.M., in the City Council Chamber, 2401 Market Street, Baytown, Texas, 77520 General Manager Davis presented the agenda item and stated that the next Baytown Municipal Development District meeting is scheduled for Thursday July 06 2017 at 430 P M. in the City Council Chamber 2401 Market Street Baytown, Texas, 77520 ADJOURN MDD Board Regular Meeting Minutes June Ol 2017 Page 7 of 7 A motion was made by Director Robert C Hoskins and seconded by Director Mary Hernandez adjourning the June 01 2017 MDD Board Regular meeting The vote was as follows Ayes Secretary Reggie Brewer Director Charles Johnson, President Stephen H DonCarlos, Director Gary Englert Director Mary Hernandez, Director Robert C Hoskins, Director David McCartney Vice -President Chris Presley Director Laura Alvarado, Director Terry Sam Nays None Other Director David P Jurels (Absent) Approved With there being no further busmess to discuss, President DonCarlos adjourned the June 01, 2017, Municipal Development District (MDD) Board Regular Meeting at 5 36 P M Leticia Brysch Assistant Stl6retary City of Baytown