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2021 01 07 MDD MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT January 7, 2021 The Board of Directors of the Baytown Municipal Development District (MDD) met in a Regular Meeting on Thursday, January 7, 2021, at 6:16 P.M., in the Council Chamber of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance: Brandon Capetillo President Chris Presley Vice President Laura Alvarado Secretary Suhey Rios -Alvarez Director Mary Hernandez Director Charles Johnson Director Heather Betancourth Director Jacob Powell Director Mike Lester Director David P. Jirrels Director Rick Davis General Manager Karen Horner General Counsel Leticia Brysch Assistant Secretary President Brandon Capetillo convened the January 7, 2021, MDD Board Regular Meeting with a quorum present at 6:16 P.M., all members were present with the exception of Director Englert who was absent. 1. MINUTES a. Consider approving the minutes of the Municipal Development District Regular Meeting held on November 5, 2020. b. Consider approving the minutes of the Municipal Development District Regular Meeting held on December 3, 2020. A motion was made by Director Charles Johnson, and seconded by Secretary Laura Alvarado to approve the minutes of the Municipal Development District Regular Meeting minutes held on November 5, 2020, and December 3, 2020, both as submitted. The vote was as follows: Ayes: President Brandon Capetillo, Vice -President Chris Presley, Secretary Laura Alvarado, Director Suhey Rios -Alvarez, Director Mary Hernandez, Director Charles Johnson, Director Heather Betancourth, Director Jacob Powell, Director Mike Lester, Director David P. Jirrels Nays: None MDD Board Regular Meeting Minutes January 7, 2021 Page 2 of 12 Nays: None Other: Director Gary Englert (Absent) Approved 2. PROPOSED RESOLUTIONS a. Consider a resolution authorizing an interlocal agreement with the City of Baytown for the funding of a portion of the Citizens Bank Renovation Project. Assistant General Manager Nick Woolery introduced the item and stated that if the directors recalled, last year, they authorized an interlocal agreement to fund the design of the Citizen's Bank Renovation Project, and he was happy to report that staff is almost finished with its design. He noted that Assistant Director of Public Works and Engineering Andrea Brinkley was going to talk about the status, but before she did, he want to note that this resolution will fund a portion of the project, in the amount of one point four million dollars, with the total amount being roughly two point four million. Mr. Woolery noted that the project will be jointly funded by the city and the water and sewer fund. Mrs. Brinkley noted that they are now at 90% completion level with the project plans, which are scheduled for completion by the end of next month. Once completed, they will move into the permit stage, followed by the bid process and, hopefully, MDD can award this construction contract in May 2021. Mrs. Brinkley showed a number of pictures showing renderings of the outside elevation of the building, as well as, sections of the interior including the service desk, back offices, shared areas, etc. She noted that there will be a new terrazzo floor because they cannot save the original as it is too damaged and the building does need a new foundation. Mrs. Brinkley also noted that they will attempt to save as much of the limestone fagade as they can; however, it is very fragile, so they have added a few windows to help accommodate the amount that can be salvaged, she noted that these additional windows will add a lot of really nice bright light along the Texas Avenue side of the building. Mrs. Brinkley stated that she believes that this will be a much -improved area for the inside and outside of the building, and was very excited to see it come to fruition. Director Presley stated that he believed that the MDD got this project right. Director Alvarado stated that she was sure the Utility Billing (UB) staff will be happy in the new building and asked what was going to happen to the old UB building once it is unoccupied. Mr. Woolery noted that the City is currently completing a facilities master plan so no decisions have been made for this building at this time. He noted that the building is not in the best shape and it would probably require quite a bit of work, but he did not want to throw anything out today as there are no solutions that are necessarily on the table, but it is one of the buildings that staff is looking at within that process. MDD Board Regular Meeting Minutes January 7, 2021 Page 3 of 12 Director Lester stated that as a new director, he felt that this project is great for Texas Avenue and moving UB down there, it is going to help create a lot of foot traffic to the area that will hopefully spur some additional business growth. The vote was as follows: Ayes: President Brandon Capetillo, Vice -President Chris Presley, Secretary Laura Alvarado, Director Suhey Rios -Alvarez, Director Mary Hernandez, Director Charles Johnson, Director Heather Betancourth, Director Jacob Powell, Director Mike Lester, Director David P. Jirrels Nays: None Other: Director Gary Englert (Absent) Approved RESOLUTION NO.408 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 INTERLOCAL AGREEMENT WITH THE CITY OF BAYTOWN TO PROVIDE FUNDING FOR A PORTION OF THE CITIZENS BANK RENOVATION PROJECT; AUTHORIZING PAYMENT IN AN AMOUNT NOT TO EXCEED ONE MILLION FOUR HUNDRED THOUSAND AND NO/100 DOLLARS ($1,400,000.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 3. DISCUSSIONS a. Receive and discuss proposed guidelines for the Business Improvement Grant Program and the Baytown Revolving Loan Fund. Economic Development Manager Bret Gardella presented the item and stated that staff first introduced this item to the MDD directors back in the budget cycle, which included new economic development programs in order to give us a couple more tools in our toolbox to help local businesses. He stated that he was going to give the directors a general overview of the proposed programs and then based on their comments, staff would bring back some actual guidelines for their consideration. Mr. Gardella noted that the first of the two proposed programs is the Business Improvement Grant that is really very loosely patterned after the City's Fagade Program that already exist for the City's Downtown corridor, but this option would take this program citywide. He noted that staff wanted to have the ability to go out and attract any of these business opportunities out within the city to be able to come in front of us and work with us on helping them improve their buildings. He stated that this proposed program is a reimbursement grant and no monies would be given out to applicants upfront. He noted that people would have to get accepted into the program first and MDD Board Regular Meeting Minutes January 7, 2021 Page 4 of 12 then they would become eligible to do the work once they are accepted into the program, and then it would be a fifty-fifty match, with a ten -thousand -dollar maximum grant amount. Mr. Gardella noted that twenty thousand dollars on someone's property can go a long way to making the types of improvements that really beautify these properties, which will then make them more valuable not only on the tax rolls, but also it will make them more valuable to their customers because we want to make sure that we are making some improvements, so people will stop and go in. This program is looking at everything in the exterior, from painting to signage; the removal of old signage, the repair of parking lots, facades, awnings, and other such things that will make the exterior more attractive and more palatable for customers to stop and want to go see and then, hopefully, the customer service on the inside will generate the sales. Mr. Gardella noted that the evaluation criteria is fairly simple and staff is going look at three different items: 1. the visual impact of what the project is going to do is going to be most important because the goal, obviously, are the repairs to the outside, in order to make it visually appealing; 2. the economic impact, comes in if after the improvements to the property, it does help increase it in value on the ad valorem side, and the secondary economic impact is getting the customers in the door to give that business to the owner, whomever that may be, their money we can make a better economic impact not only for that business but generate some other sales tax revenue as well; and 3. then the third is the historical impact in the community; such as Alexander Drive. Mr. Gardella then presented the Baytown Revolving Loan Fund, which is a revolving loan fund that is also a perpetual fund. He noted that we will need to fund this upfront with some money and we are only looking to create a loan that is going to be in a second position to a financial institution; i.e. to bridge the gap for any business that does not have a hundred percent of the financial means to get where they need to go. Mr. Gardella noted that this plan has two different loan structures to it. He also noted that hopefully out of this we can get businesses to expand or find some of those businesses that we can attract to come into our city that are maybe not here, and of course, this gives us that ability to work in some of the underserved or redeveloping areas that we have around the city so we can attract people here to put them in those areas because we have this ability to help them out with a low -interest loan. Mr. Gardella noted that this is all about creating private -sector jobs. It is all about creating full- time jobs, full-time equivalent jobs, so if you have two part-timers, we will take that into consideration. He also stated that these are loans on this particular program because we want to make sure that the business has skin in the game, which they will; they have to have at least ten percent equity into it, but this is about bridging that gap, making the financial institution that we end up working with on this comfortable that if they cannot loan a hundred percent of the money. The City is going to come in with up to a hundred thousand potentially, based on the job creation, and if our rate is at four percent and a typical loan rate right now is about six to six and a half depending on credit, we can aggregate that money down to about a five percent rate for the borrower, which gives them the ability to have a stronger financial position and have a stronger financial position to make their payments. MDD Board Regular Meeting Minutes January 7, 2021 Page 5 of 12 Mr. Gardella also noted that this is why we would come in as a second position, but with personal guarantees and even if their business ends up not succeeding, they will still owe the money back as this is not a forgivable type of program. He stated that we want to make sure that we are covering our bases on helping people as much as we can, and lastly, on the revolving loan fund, it is a ten percent gap, second position, four percent. Now, both of these programs will have a committee that approves it just like the other program so it is not like anybody can just apply and get accepted and move forward. This will have to have committee approval, which we are looking at staff members to do right now because you all are so busy and those staff recommendations would come to you guys for final yes or no anyway as we move forward. Director Presley stated that he would begin with the BIG, Business Improvement Grant Program and noted that just to be clear. We pretty much did away with the facade program a year or so ago and that program offered up to forty thousand dollars as a fifty-fifty match. He sees the BIG here is essentially for facades, parking lots, and landscaping, so instead of forty that was previously available per applicant, we are down to ten thousand now, so he does not really see this as increasing the incentives that we have talked about on several occasions. Instead, he sees it as a downsized incentive and when you get into facades and concrete parking lots and things like that, he is just speaking from experience here and learn some things the hard way over twenty-five years. That is an astronomically low number, and asked what did we designate for this program, fifty or a hundred? Mr. Woolery noted that the program has fifty thousand dollars designated in this budget. Mr. Woolery noted that we wanted to pilot something new, so the hope is that we get ten businesses that walk in the door with great projects to where we realize that we need to up the game and provide more funding. He further noted that we do not know that quite yet, but we do still have facade program money, but nobody is coming in the door for it. City Manager Rick Davis stated that the Fagade Program is still in existence and the proposed programs are additional programs and what we do with the facade program is not nix, but we have in fact expanded it. Mr. Davis noted that as Council directed we will bring any worthy project to you and this program does not preclude this body's ability to partner on any economic development project, so this is additional. Director Presley noted in relation to the revolving loan fund that he wanted to start with citywide first, and you know, one hundred thousand dollars does not go very far citywide and what he had envisioned, it is not only old Baytown in District 2 and Market Street in District 1, but whether it is Bayway or Alexander, maybe there is a portion of District 5, and some portions of District 4, but would we really consider this program for a business on Garth Road? Director Presley commented that that he kind of thought that the focus of this program was on the older areas of the city. He stated that he understands the term that it is preferred in the areas we were redeveloping, but would we want to consider, maybe require it to be in those areas, it is given high priority. He just thought the focus was incentives to help redevelop the areas that needed redeveloping. Mr. Davis noted that this is the concept called Economic Development Gardening which could be used anywhere in the city and its intention is to create jobs and, obviously, to do other things that MDD Board Regular Meeting Minutes January 7, 2021 Page 6 of 12 incentivize economic growth. We anticipate that most likely, it is going to be businesses in the older part of Baytown that will probably participate in this program but we can talk about that as a policy modification. Director Presley noted that he wanted to share some food for thought, so as far as the other portions of it, you know, gap financing, second lien position, there needs to be full-time employment and personal guarantees. Let us remember that this is geared predominantly to small business owners who are not overly sophisticated and who essentially run from red tape more often than not. In his opinion, this is just one person's opinion here, it seems like it is too onerous to be considered a true incentive and he thinks we are going to have to have an analyst now, a loan committee. We are going to have to figure out creditworthiness; to make credit decisions and to figure out what the gap is. It seems that the bureaucratic cost will exceed the community benefit five or ten times over. Director Presley stated that he liked to BIG program much better as it is simple. If you invest in an old building in Old Baytown or on Bayway or on Alexander or in an older part of District 4, we are going to help you. We are going to do a fifty-fifty match on the improvements that we think make sense. You have the building or the property listed for sale. You have it listed for rent. If you have an active business, maybe you put the stipulation and they have to be in business for a year or two years. However, we are trying to help small businesses and to make this congruent with the paperwork and the leg work that is required for a first lien loan, and he is just not sure. It is not going to achieve what he had envisioned with all of these stipulations and requirements. He would like to see this combined into the BIG to where it is real simple. If you do those things, we are going to help you, period, no ifs, ands, or buts. Obviously, he is passionate about it because his District needs all the help it can get, just as Laura's does, the older areas of everyone's District. He is aggressive on this and is putting it out there because he believes we all need to kind of consider it and try to make this thing the best it can be and wished Director Gary Englert was here because he would really have some good information as well, about small business lending and the challenges that they already face. He would like to see the BIG program bigger and if we are willing to see who signs up for this program, that is fine, but believes they are going to be sadly disappointed. We are here to discuss it and he just wanted to get it out there. President Capetillo commented that he appreciated Director Presley's comments and he believes that the biggest thing he would do is to separate these two, regardless of the amounts and the conceptual framework and guidelines. He asked if the BIG was in a sense a grant, so it is fifty- fifty, you know, so if is a grant, there is nothing to recover, and then the revolving loan program is, let us just say, a hundred thousand. We have to start somewhere. We have to kind of say this is the fund. We hope that it is successful, so we have to come back and say, "Hey, it was knocked out of the park. Let us go and we need more funding." But that is going to be a program that will replenish and hopefully keep sustaining whatever balance that we see if it is a 100K or 200K, so I want to kind of separate those two, but I think what I am hearing from you is you like the concept and framework of the program itself, but one needs to be a grant. Director Presley stated that he did not want the revolving loan fund at all because it puts us in a position, for example, if is a resident with a small business that we are going to foreclose, do we really want to be in the position to add insult to injury? He just likes it clean, the grant program. We are trying to revitalize our older areas and have been trying for ten years. He thinks there is room, the BIG is much more aggressive; it is easier, and it is simpler. He likes it ten times better than this revolving loan fund. MDD Board Regular Meeting Minutes January 7, 2021 Page 7 of 12 President Capetillo asked Director Presley that if the BIG was funded a 100K and they started at 50K for the loan program, would that work for him. Director Presley stated that this would be better and would be a good start in the right direction and if and when he is wrong, he admits it. He is just putting things out there, for someone that has borrowed, honestly, a couple of million dollars over thirty years and starting out very small, he knows how ten thousand dollars goes and how red tape and bureaucracy can be deal -killers and turn people off, and also the full-time employment contingency. Small-business owners are usually operators and supplement their work with part-time work, and contract labor. The full-time employment stipulation is a very high hurdle to clear when we are really just trying to improve and update the aesthetics of older buildings and a lot of stuff that really just does not contribute anything to the city. He knows he is going all in here, but he has been beating on the table to do more on our older areas, and get serious about revitalization, and he is still pounding on the table. That is a good step, Mayor, and he would reluctantly support that, but he has doubts on the revolving loan fund. Director Betancourth stated that she liked the Business Improvement Grants and that it expanded from more than just the facades. She noted that Mr. Gardella has mentioned that staff would take this proposal and pilot it on Alexander, so does that mean you are not going to open it up to the community at large just yet, so if we approved this, you would just focus on Alexander first and then open it up? Mr. Gardella noted that the program would be opened up citywide, but what they are going to do is between the Planning department and himself, they are going to focus on Alexander Drive by sending them direct information. Director Betancourth asked how are staff was going to let people know about the program because she has found that we come up with these great programs that are extremely useful for redevelopment and then when she is out in the community talking to people, no one has any idea that they exist. She understands that some of it falls on them for not inquiring about it, but if our goal really is to drive redevelopment, we are going to have to get a lot more proactive and actually, going door-to-door to these businesses. If we do move forward with that one, she just asks that we would be very proactive. She understands Alexander is your preferred pilot, but after that, we just need to do more than just put it on Facebook every now and then. Mr. Gardella noted that he completely agreed. Director Betancourth liked the idea of reaching out to businesses with code enforcement issues, as well as the point about council members having a proactive role in identifying buildings or businesses and bringing that back to staff for further processing. She stated that her last comment is on the revolving loan. She noted that she did like the concept, but Councilman Presley had a good point about maybe the bureaucracy and the red tape being a bit much for the business owners with the type of entrepreneurs that she thinks we are targeting with this. The terms that she is looking at are not much different than the terms she would get from a bank, except maybe the interest rates a little lower, but she does not know if the requirements needed would incentivize her enough to get one percentage point more. To her, and this is again food for thought, the people who would need something like this from the city, are people who probably are not that creditworthy and cannot go to a bank and so having these types of terms still may not be attractive to them. However, if you start dipping into that pole of person like you said, are we really going to foreclose? She thinks there are some good points there to think through a little more but likes MDD Board Regular Meeting Minutes January 7, 2021 Page 8 of 12 the concept as a whole. There is a need for people who maybe are not creditworthy who want to open a business, expand their business, or improve their business and cannot go the traditional route. They do need an alternative route and she is not quite feeling that this is it just yet. Mr. Gardella stated that he had worked with both of these programs in previous communities and they both worked very successfully, including the revolving loan fund. We would not internally manage this money, but rather they would put an RFQ out and would work with a local lender. The benefit of the local lender is obviously going to be to bring in a new client, whoever wants to borrow money for a project, and it is typically an expansion project or relocation. It is not normally someone who is, with the exception of the microloan, just starting up but the bank, then runs their loan that they cannot fund a hundred percent for this person. That is why we come in as a second to close that gap, so it gives the financial institution the confidence to lend to that person. They are also getting that person as a client; therefore, they will end up making additional monies off of that client at some point in time in the future through credit cards or whatever else that they use and then they manage the payment system for us. They would also send out the notices, collect the money, and let us know if and when the person gets behind. He also noted that in the last community he was in, they did have to go out and collect on people that forfeited or defaulted on their notes and that is a part of the standard process of being in business. If you take out a note on something and you cannot make your payments, you are still personally liable for it. It is not trying to put the city or us, as individuals, in a bad position because we are quite honestly doing the opposite. On the front end, we are trying to support these people who may not have all the creditworthiness in the world to get where they need to go and we are trying to offset that and help them to get where they need to go to get them into business. Personally, he has seen it work successfully. Mr. Gardella further noted that the failure rate on these programs have been low, but that does not mean it cannot be different down here, but it is a concept of how we can help other people to help themselves. The grant program, obviously, is a very simple and easy grant program that we can all benefit from because we can get out to these people directly and help them make a difference. We can change the dollar amounts for it if we want to, since we only had 50K initially for the program and we were trying to go citywide, that is why we were keeping the dollar amounts low. If there is more funding that could be made available to the program and instead of a ten -thousand -dollar cap, we want to go higher. We can absolutely do that because we know there are a lot of buildings and a lot of properties that need to be improved around the city. Mr. Woolery noted that there is one key difference, one other reason that it is important that both programs move forward. He noted that the Business Improvement Grant is all external stuff, for example, all kind of publicly visible items, while the Revolving Loan Fund can be for actual internal improvements, which is a key point that will be of great assistance to small businesses. Mr. Gardella stated that he had seen the microloan, for example, for up to ten thousand dollars that were very successful in helping to start small retail businesses because we do allow people to buy inventory out of those monies, and we always treat whoever the business owner is, who typically runs it by themselves as one full-time equivalent. Therefore, even though the business owner has some equity in the game, they are also managing the business and are working at a full-time status, so they are one full-time equivalent person. MDD Board Regular Meeting Minutes January 7, 2021 Page 9 of 12 Director Alvarado stated that she through that she wanted to have additional time on this item in order to have additional discussions, and while she did not know if she was in agreement with Director Presley, she wanted more time to consider and understand the FTEs for small businesses. Mr. Gardella stated that the FTEs issue could be changed at their direction. Director Alvarado also noted that different small businesses nationwide had been impacted in one way or another by the pandemic, so she thought that they were off to a great start in thinking about this program, however, she did caution on how the programs were going to be promoted. She noted that with the revolving loan, she kind of cautioned especially some of the smaller businesses who may have had some misconceptions on the program because businesses were getting millions of dollars that they felt maybe did not need that much. The small businesses who may see this as the red tape and say, you know, it has been a go -to for some other businesses that probably do not need it before I do. Perhaps what we can do aside from any fliers and promotions on Facebook, maybe hold an information session whether on Zoom or at the Community Center, about these programs and how they can help supplement businesses. She also noted that she thought that we needed to do a little bit more to gain the trust of small businesses who have been heavily impacted and not detour them because of red tape or because they think some other business is going to get it. Mr. Gardella noted that he completely agreed and he echoed Director Presley's sentiments about the revolving loan as most of those are not going to go to small businesses that are existing right now that have struggled. Again, this loan is for a business that is looking to expand or that is looking to relocate into the city. The small businesses that we have right now that are struggling, he believes our Community Development Program will have a presentation coming up at the next council meeting or by the end of this month to talk about another program that they can operate that can assist them. There is a difference in the programs. The Revolving Loan Fund is really meant to be a little bit more long-term of those expanding or relocating, not necessarily for those people right now that are struggling. The Business Improvement Grant can help some of those people that are struggling now, but not to make payroll or to buy inventory. He noted that the program can help them to change the physical look of their building so it would be more attractive to bring people in. He noted that the Economic Development Program does not currently have a plan or a program in place that has monies to assist businesses that are struggling making payroll, this is more in line with the Community Development Division which are going to be finalizing something to present to the council about that in the near future. Director Alvarado thanked Mr. Gardella for his clarifications and noted that her last point is that she thought it would be a little bit prudent that instead of saying preferred, that it would be an area at least for the pilot, this is just my thought, I meant least for this pilot program that it would be in an area that is needing redevelopment versus just prefer because then we are going to get all over the place. I know that we want to expand this program, I know that we want to bring in businesses citywide, but I do not really like the preferred because we need to concentrate on the area that needs redevelopment within the entire District, areas that need redevelopment. Mr. Gardella clarified with Director Alvarado that this request to focus on districts that need redevelopment be just for the Revolving Fund Program. MDD Board Regular Meeting Minutes January 7, 2021 Page 10 of 12 Director Presley stated that he wanted to talk about the difference in the BIG and the Revolving Loan Fund because the Revolving Loan Fund would qualify for things inside the building and the BIG is just the facade of the exterior. He noted that they had previously talked about altering the Facade Program to were that fifty percent match, bringing a building up to code, even if it was in the interior, whether it was adding restrooms or a fire alarm system, that was eligible, but now, this program dictates that if you want to do those things, you have to pay a four percent interest, get a starting loan, and give a personal guarantee. He believes they said something a little different there so according to Mr. Woolery, you have to go to the Revolving Loan Fund Program to bring a building up to code other than just the facade and that is a problem. Mr. Davis noted that he did not think there was anything in the presentation of these programs that precluded or was intended to preclude the ability of this body to partner on any economic development endeavor, so if you want to participate in a different way, these are just two different programs. Director Presley noted that according to Mr. Woolery, the Business Improvement Grant has to be used for facade or exterior only and that is not what we have been talking about for a year or two. We have a number of older buildings where it is cost -prohibited to bring them up to code. We need to find ways to help people bring those older buildings up to code. That is just as important as putting up a facade and let me tell you something, we are going to have more people to bring an old building up to code, put in a fire alarm, put in two new restrooms, do whatever needs to be done if it cannot be on a fifty percent reimbursement basis as opposed to a personal guarantee, a second lien, a four percent interest rate, a credit check, full-time employment positions. While this is a great step and he is so happy they are having this discussion, he just wants them to get it right and it has been such a long time coming. Director Alvarado stated that the way she saw it, it would be an option. She does not know if she understood it would be one thing or the other so if there is not any additional monies left in the facade improvement that could be used as, if she heard correctly, Mr. Davis said that we are evolving that particular program to include inside renovations, but let us say we have all the businesses come forward to do the facade program and we have no additional monies then this revolving one would be another option for them. Would that be something that is possible instead of saying, "Okay, if you need sprinklers or fire alarms, you are going to have to get the revolving door or loan." Mr. Davis stated that the best way to think of this program is that we are going to beget another arrow in the quiver of a lending institution that already exists. They have customers, they have businesses that are coming to them. There is a limitation of what that institution will lend that business but with the city participating with this program, they can go a little bit further because of the type of institution that we are, what we are going to provide. We are just another tool in their toolbox to deal with those clients. If you are asking if it is conceivable that a business who may not want to go the direction of the business, the BIG can go the route of the BRLF, he can imagine so, of course, he can do that. President Capetillo stated that he wanted to make sure if there is any funding balance from the previous Facade Program that currently may not exist as far as the program, but if there is funding, MDD Board Regular Meeting Minutes January 7, 2021 Page 11 of 12 please let us know what that amount is. Mr. Woolery noted that the Facade Program has a little over a hundred thousand dollars, and someone could apply for that program today. President Capetillo stated that he appreciated all comments. He noted that he thinks the first need is aesthetics, right? There are some businesses that probably exist that should almost be a qualification, but it does not have to be the first need, it is either an existing business that wants to go into a fifty percent match with the city, wherever they may be in this city. If someone wants to improve their business and we offer'Y' amount of money for that, that is a need, there is no doubt. It certainly improves the external aesthetics, whatever the case may be. I think there is a need, certainly in the outer areas of town and he has been saying this for a while. He guarantees you, there is a need in every District. President Capetillo also noted that there is a commercial quarter that could have a building that needs internal repairs that needs bringing up to code; it could be bars that need to add a three - compartment sink, or whatever the case may be. He thinks there is a need for the internal improvements of those buildings, there is no doubt, especially in historic areas. He does like that it is more of an economic development tool to say if you are a business, like you say, is probably somebody that probably does not have the best credit but they are going out on it. We are kind of that supplemental funding to help them get over this, the point where they could get their private financing in order, and then hopefully replenish that fund. He thinks there are three components here. This is a discussion item tonight and no decision is required tonight. He further stated that the purpose of this is to receive and discuss. He believes they have identified three areas. He thinks if there is anything that we want to do different, please, convey that to staff. He is not trying to encourage more discussion tonight, but he thinks they have identified three areas and that was the purpose and he agrees wholeheartedly. Mr. Davis noted that he would rather not talk about these programs in terms of a facade program as we need to expand how we apply these dollars. The second thing he wants to point out is in regards to the revolving fund because this is how we magnify dollars. We can reuse dollars and that is why we would advise you that both components are necessary to the degree that you want to fund those. That is a policy decision, obviously, but this is ground, well -trod by lots of different cities. This is, I think it has been more than twenty years that I have heard about these city revolving loan programs and that they have been very, very, very successful. He thinks that staff needs to have another discussion with you, unless we are fine, we will take your feedback and come back for another discussion. 4. EXECUTIVE SESSION a. Recess and convened into executive session pursuant to Sections 551.071 of the Texas Government Code to seek the advice of the District's attorneys on legal matters related to the Baytown Hotel and Convention Center Project. At 7:08 P.M. President Capetillo recess and convened into executive session pursuant to Sections 551.071 of the Texas Government Code to seek the advice of the District's attorneys on legal matters related to the Baytown Hotel and Convention Center Project. MDD Board Regular Meeting Minutes January 7, 2021 Page 12 of 12 At 8:07 P.M., Mayor Capetillo reconvened the open meeting of the Baytown Municipal Development District's Regular Meeting and announced that in accordance with Section 551.102 of the Texas Open Meetings Act, no action was taken in the executive session. 5. MANAGER'S REPORT b. The next Baytown Municipal Development District meeting is scheduled for Thursday, February 3, 2021, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas, 77520. General Manager Rick Davis reminded the members of their next meeting on February Yd. 6. ADJOURN With there being no further business to discuss, President Capetillo adjourned the January 7, 2021, MDD Board Regular Meeting at 8:07 P.M. Leticia Brysch, Assistant City of Baytown