2019 01 10 MDD Minutes, SpecialMINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT
January 10, 2019
The Board of Directors of the Baytown Municipal Development District (MDD) met in a Special
Meeting on Thursday, January 10, 2019, at 4:30 P.M., in the Council Chamber of the Baytown
City Hall, 2401 Market Street, Baytown, Texas with the following in attendance:
Chris Presley
Vice President
Laura Alvarado
Secretary
Suhey Rios -Alvarez
Director
Mary Hernandez
Director
Charles Johnson
Director
Heather Betancourth
Director
Robert C. Hoskins
Director
David Himsel
Director
David P. Jirrels
Director
Gary Englert
Director
Ron Bottoms Deputy General Manager
Ignacio Ramirez, Sr. General Counsel
Alisha Segovia Deputy Assistant Secretary
Vice President Chris Presley convened the January 10, 2019, MDD Board Special Meeting with
a quorum present at 4:30 P.M., all members were present with the exception of Director Brandon
Capetillo.
1. BUSINESS ITEMS
a. Consider the election of officers for the position of MDD President.
Deputy Assistant Secretary Alisha Segovia presented agenda item La. and stated that on
September 6, 2018, former City of Baytown Mayor and MDD President Stephen H. DonCarlos
was elected to serve another one year term as the President for the MDD Board and since such
that time, Mr. DonCarlos has come off both the Council and the MDD board, leaving the
position of MDD President vacant. As such Mr. Segovia stated that this item allows the MDD
board to elect one of its members to serve in this capacity to complete the unexpired term of
office for President of the Baytown Municipal Development District Board.
A motion was made by Director Gary Englert, and seconded by Director David Himsel
approving the election of Brandon Capetillo as President to complete the unexpired term left by
Stephen H. DonCarlos. The vote was as follows:
Ayes: Vice -President Chris Presley, Secretary Laura Alvarado, Director Mary
Hernandez, Director Charles Johnson, Director Heather Betancourth, Director
MDD Board Special Meeting Minutes
January 10, 2019
Page 2 of 7
Robert C. Hoskins, Director David Himsel, Director David P. Jirrels, Director
Gary Englert
Nays- None
Other: President Brandon Capetillo (Absent), Director Suhey Rios -Alvarez (Not Present
for Vote)
Approved
2. MINUTES
Vice President Chris Presley stated that agenda items 2.a. and 2.b. would be considered together.
a. Consider approving the minutes of the Baytown Municipal Development District
Regular Meeting held on August 2, 2018.
b. Consider approving the minutes of the Baytown Municipal Development District
Regular Meeting held on September 6, 2018.
A motion was made by Director Mary Hernandez, and seconded by Secretary Laura Alvarado
approving the August 2, 2018 and September 6, 2018, MDD Board Regular Meeting minutes.
The vote was as follows:
Ayes: Vice -President Chris Presley, Secretary Laura Alvarado, Director Mary
Hernandez, Director Charles Johnson, Director Heather Betancourth, Director
Robert C. Hoskins, Director David Himsel, Director David P. Jirrels, Director
Gary Englert
Nays: None
Other: President Brandon Capetillo (Absent), Director Suhey Rios -Alvarez (Not Present
for Vote)
Approved
3. PROPOSED RESOLUTIONS
a. Consider resolution authorizing the Ground Lease and License Agreement with the
City of Baytown for the Baytown Convention Center Hotel.
b. Consider a resolution authorizing the City Facilities Lease Agreement with the City
of Baytown.
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January 10, 2019
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Deputy General Manager Ron Bottoms presented agenda item 3.a. and 3.b. together and stated
that these items approve a lease agreement and facility agreement for the Hotel and Convention
Center Project.
The Ground Lease is the land where the facility will be located and the agreement is a lease
where the City of Baytown is leasing the land to the Hotel to MDD and the second item is the
lease the convention center to the MDD for the entire project and Mr. Bottoms reiterated that the
agreements are between MDD and the City of Baytown. Mr. Bottoms further stated that the in
order for the documents to be modified. Investors look at the document and that the document is
before the Board electronically.
Vice President Chris Presley questioned what could possibly be the nature of an amendment in
the future and Deputy General Manager Bottoms responded that more than likely it would be
amendments related to bonds, as the bond council stated that there might be a chance that
amendments might need to be made, as the investors for the bonds have not reviewed the ground
lease document yet, however staff is comfortable approving the agreements at this point.
Director Robert Hoskins expressed his concern with not having the document with advance
notice to review as the documents are rather large and voluminous. Director Charles Johnson
and Secretary Laura Alvarado concurred with Director Hoskins sentiments. Director David
Jirrels questions who has reviewed the document and Mr. Bottoms responded that General and
Bond Counsel have reviewed the documents.
Vice President Presley further questioned if there are time constrains with approving these
agreements and Mr. Bottoms responded that there is not a time constraint but that staff is trying
to keep the item moving forward so that CitiGroup and other interested parties can have ample
time to review the agreements.
Vice President Chris Presley requested a motion to consider agenda items 2.a. and 2.b. together.
A motion was made by Secretary Laura Alvarado, and seconded by Director Mary Hernandez
approving agenda items 3.a. and 3.b. The vote was as follows:
Ayes: None
Nays: Vice -President Chris Presley, Secretary Laura Alvarado, Director Suhey Rios -
Alvarez, Director Mary Hernandez, Director Charles Johnson, Director Heather
Betancourth, Director Robert C. Hoskins, Director David Himsel, Director David
P. Jirrels, Director Gary Englert
Other: President Brandon Capetillo (Absent)
Rejected
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January 10, 2019
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C. Consider a resolution reprogramming funds in the Baytown Municipal
Development District FY 2018-2019 budget to provide additional funding for furniture,
fixtures and equipment for the Evergreen Park Clubhouse.
Parks and Recreation Director Scott Johnson presented agenda item 3.c. and stated that
Resolution No. 365 approved the reallocation of $175,000.00 in the Baytown Municipal
Development District FY 2018-2019 budget from contingencies to the Evergreen Park
Clubhouse to use to ready the facility for rental. Mr. Johnson further stated that this funding
would cover the purchase and installation of audio visual equipment including large screen TVs
for presentations, quality sound system, lobby furniture, dressing room furniture and finishing, as
well as commercial kitchen equipment including a refrigerator, ice machine, warming cabinet, a
freezer and portable bar. As well as IT needs and some needed electrical improvements to
provide power for bands and exterior lighting. A portable podium and cell phone charging
station is also included in the project.
Mr. Johnson presented the Board with a Power Point Presentation with pictures of the newly
renovated facility and stated that requests for rental were already coming in. Director Heather
Betancourth questioned if an open house will be conducted to intrude the public to the facility
and Mr. Johnson responded that staff will look into conducting a ribbon cutting ceremony
sometime in April.
Director David Himsel asked the capacity of the facility and the rental fees and Mr. Johnson
responded that the capacity is around 150 to 175 and rental fees are the following:
• $500 refundable deposit
• $60 hourly rental rate
• $30 hourly rate (each) for fire and security personnel if required based on number of
attendees and if alcohol will be served.
The Board commended staff for their efforts on this project and Director Robert Hoskins
requested staff to schedule a tour of the facility once the project is complete.
A motion was made by Director Robert C. Hoskins, and seconded by Director Heather
Betancourth approving Resolution No. 365, regarding agenda item 3.c. The vote was as follows:
Ayes: Vice -President Chris Presley, Secretary Laura Alvarado, Director Suhey Rios -
Alvarez, Director Mary Hernandez, Director Charles Johnson, Director Heather
Betancourth, Director Robert C. Hoskins, Director David Himsel, Director David
P. Jirrels, Director Gary Englert
Nays: None
Other: President Brandon Capetillo (Absent)
Approved
MDD Board Special Meeting Minutes
January 10, 2019
Page 5 of 7
RESOLUTION NO. 365
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
2018-2019 BUDGET IN ORDER TO REPROGRAM FUNDS TO PROVIDE
FUNDING FOR FURNITURE, FIXTURES, AND EQUIPMENT FOR THE
EVERGREEN PARK CLUBHOUSE; MAKING OTHER PROVISIONS
RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE
THEREOF.
d. Consider a resolution authorizing an interlocal agreement with the City of Baytown
for furniture, fixtures and equipment for the Evergreen Park Clubhouse.
A motion was made by Director Robert C. Hoskins, and seconded by Director David Himsel
approving Resolution No. 366, regarding agenda item 3.d. The vote was as follows:
Ayes: Vice -President Chris Presley, Secretary Laura Alvarado, Director Suhey Rios -
Alvarez, Director Mary Hernandez, Director Charles Johnson, Director Heather
Betancourth, Director Robert C. Hoskins, Director David Himsel, Director David
P. Jirrels, Director Gary Englert
Nays: None
Other: President Brandon Capetillo (Absent)
Approved
RESOLUTION NO. 366
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING THE PRESIDENT
TO EXECUTE AN INTERLOCAL AGREEMENT WITH THE CITY OF
BAYTOWN FOR FUNDING THE FURNITURE, FIXTURES AND
EQUIPMENT FOR THE EVERGREEN PARK CLUBHOUSE; AUTHORIZING
PAYMENT OF AN AMOUNT NOT TO EXCEE ONE HUNDRED SEVENTY-
FIVE THOUSAND AND NO/100 DOLLARS ($175,000.00); MAKING OTHER
PROVISIONS RELATED THERETO; AND PROVIDING FOR THE
EFFECTIVE DATE THEREOF.
4. MANAGER'S REPORT
a. The next Baytown Municipal Development District meeting is scheduled for
Thursday, February 7, 2019, at 4:30 p.m., in the Council Chamber located at City Hall,
2401 Market Street, Baytown, Texas, 77520.
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January 10, 2019
Page 6 of 7
Deputy General Manager Ron Bottoms presented the Managers Report and stated that the
Brunson Theater Project is moving along and that they did not make the December I" deadline
but possible completion in late February or early March. The roof is almost complete and the
inside steel structure is being worked on
Hotel/Convention Center continues to be a challenge and that the ground and facilities lease
agreements will be brought back before the Board at their next meeting. Mr. Bottoms stated that
the franchise agreement has been a challenge with Marriott as they are not accustomed to
working with municipalities in the structure that is being presented and there are several
attorneys reviewing and commenting back and forth on legal documents. However, staff feels
they have all of the comments down to a minimum and hopefully approval is expected in the
next future.
Mr. Bottoms further stated that as part of the franchise agreement there is an attachment for an
owner agreement which is another piece that the MDD Board is a party of as well and the
operator agreement. The franchise agreement between Marriott and Interstate (operator) and the
owner agreement with Marriott, Interstate, and the City of Baytown and the Operator Agreement,
which needs to be vetted very well vetted because they will operate the facility for several years,
but that staff has comfort in knowing that Interstate manages approximately 240 Marriot
properties so they are versed in this area. Optimistically ground breaking is expected sometime
in the second quarter.
Staff met with the Mall Group on Tuesday and ground breaking is looking like sometime in
February and at this moment the plan is a mini mall between JC Penny's and Macy's and that the
building plans were expected to be turned in sometime today and Mr. Bottoms noted that the San
Jacinto Blvd Project is moving along as well and is expected to be completed in the summer.
5. ADJOURN
A motion was made by Director Charles Johnson, and seconded by Secretary Laura Alvarado
adjourning the January 10, 2019, MDD Board Special Meeting. The vote was as follows:
Ayes: Vice -President Chris Presley, Secretary Laura Alvarado, Director Suhey Rios -
Alvarez, Director Mary Hernandez, Director Charles Johnson, Director Heather
Betancourth, Director Robert C. Hoskins, Director David Himsel, Director David
P. Jirrels, Director Gary Englert
Nays: None
Other: President Brandon Capetillo (Absent)
Approved
MDD Board Special Meeting Minutes
January 10, 2019
Page 7 of 7
With there being no further business to discuss, Vice President Chris Presley adjourned the
January, 10, 2019, MDD Board Special Meeting at 4:59 P.M.
Leticia Brysch, AssistantvAcretary
City of Baytown