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2021 03 04 MDD Minutes, SpecialMINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT March 4, 2021 The Board of Directors of the Baytown Municipal Development District (MDD) met in a Special Meeting on Thursday, March 4, 2021, at 6:15 P.M., in the Council Chamber of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance: Brandon Capetillo Laura Alvarado Suhey Rios -Alvarez Mary Hernandez Charles Johnson Heather Betancourth Jacob Powell Mike Lester David P. Jirrels Gary Englert Rick Davis Karen Horner Leticia Brysch President Secretary Director Director Director Director Director Director Director Director General Manager General Counsel Assistant Secretary President Brandon Capetillo convened the March 4, 2021, MDD Board Special Meeting with a quorum present at 6:16 P.M., all members were present. 1. MINUTES A motion was made by Director Charles Johnson, and seconded by Secretary Laura Alvarado to approve the meeting minutes of the Municipal Development District related to Items 1.a. through 1.c., as submitted. The vote was as follows: Ayes: President Brandon Capetillo, Vice -President Chris Presley, Secretary Laura Alvarado, Director Suhey Rios -Alvarez, Director Charles Johnson, Director Mary Hernandez, Director Heather Betancourth, Director Jacob Powell, Director Mike Lester, Director David P. Jirrels, Director Gary Englert Nays: None Approved a. Consider approving the minutes of the Municipal Development District Regular Meeting held on January 7, 2021. MDD Board Special Meeting Minutes March 4, 2021 Page 2 of 4 b. Consider approving the minutes of the Municipal Development District Special Meeting held on January 14, 2021. C. Consider the approval of the minutes of the Municipal Development District Special Meeting held on January 21, 2021. 2. PROPOSED RESOLUTIONS a. Consider a resolution repealing Resolution No. 389 and adopting a revised budget for the Baytown Hotel Convention Center Project under the terms of the Development Management Agreement. General Manager Rick Davis presented the item and stated that they had discussed before the necessity adjusting the budget to accommodate the costs associated with the project. Especially during the last year, we talked about some of the different elements that needed to be adjusted to accommodate a 2021 scenario versus a 2020 scenario. We have with us Mr. Steve Galbreath, from Garfield, and he is going to take you through this look at his way. Mr. Steve Galbreath, representative of Garfield Public/Private LLC, stated that we have had some cost escalations and as you have seen in the budget, we have also added three pieces of scope to this project that were not initially on this item, one is the lift station, that is the $2.4 million and then the next two are what is one called utilities, mostly for power, but also for some additional utilities that the city might want to put in that area and that is about $600,000 and then there is a contingency of about $298,000 for those utilities. The total add to the hotel project is about $3 million, which is about a 4.7% increase. They were initially thinking, when we decided to kind of pause this because of COVID, that that we might be seeing escalations of between five and 10% when we came back a year later, but we are pretty pleased that we came back and have escalations of 4.7%, which is very reasonable. He stated that he also has Nicole here with DPR, who has been our liaison, and is our design -builder, contractor and he has been connected to the sub -trade market and that is really what is been able to keep those prices down. He then presented a recap of the budget with the noted changes. A motion was made by Director Charles Johnson, and seconded by Secretary Laura Alvarado to approve Resolution No. 410, related to Item 2.a. The vote was as follows: Ayes: President Brandon Capetillo, Vice -President Chris Presley, Secretary Laura Alvarado, Director Suhey Rios -Alvarez, Director Charles Johnson, Director Mary Hernandez, Director Heather Betancourth, Director Jacob Powell, Director Mike Lester, Director David P. Jirrels, Director Gary Englert Nays: None Approved MDD Board Special Meeting Minutes March 4, 2021 Page 3 of 4 RESOLUTION NO. 410 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT REPEALING RESOLUTION NO. 3891 WHICH APPROVED A BUDGET FOR THE BAYTOWN HOTEL AND CONVENTION CENTER PROJECT; APPROVING AN UPDATED BUDGET FOR THE BAYTOWN HOTEL CONVENTION CENTER PROJECT; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. b. Consider a resolution authorizing the First Amendment to the Funding Agreement with the Baytown Hospitality Public Facilities Corporation and the City of Baytown to fund the costs of the Pre -Construction Agreement with DPR Construction and a portion of the costs of the Development Management Agreement with Garfield Public/Private LLC, for expenses associated with the Baytown Hotel and Convention Center Project. Director of Finance Victor Brownlees presented the item and stated that following from your approval of the budget, this item puts into effect some of the detailed work that needs to be carried out to bring the project to fruition relating to the costs of DPR, under franchise Garfield, so this is the practical application's decision you just made to approve the budget. A motion was made by Secretary Laura Alvarado, and seconded by Director Charles Johnson to approve Resolution No. 411, related to Item 2.b. The vote was as follows: Ayes: President Brandon Capetillo, Vice -President Chris Presley, Secretary Laura Alvarado, Director Suhey Rios -Alvarez, Director Charles Johnson, Director Mary Hernandez, Director Heather Betancourth, Director Jacob Powell, Director Mike Lester, Director David P. Jirrels, Director Gary Englert Nays: None Approved RESOLUTION NO. 411 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT AUTHORIZING THE PRESIDENT TO EXECUTE THE FIRST AMENDMENT TO THE AGREEMENT FOR FUNDING ASSOCIATED WITH THE HOTEL/CONVENTION CENTER PRE - CONSTRUCTION EFFORTS WITH THE BAYTOWN HOSPITALITY PUBLIC FACILITIES CORPORATION AND THE CITY OF BAYTOWN; AUTHORIZING PAYMENT OF AN ADDITIONAL AMOUNT NOT TO EXCEED FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($500,00.00); MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. MDD Board Special Meeting Minutes March 4, 2021 Page 4 of 4 3. REPORTS a. Receive the Baytown Municipal Development District's Quarterly Financial and Investment Reports for the Quarter Ending December 31, 2020. Director of Finance Victor Brownlees presented the item and stated that in the first quarter of the current fiscal year, we have turned in about three hundred fifty to four hundred thousand excess dollars in terms of sales tax collections. They have been extremely cautious last year when they put the budget together for the MDD and they are right performing, not just the budget but last year's sales tax. If the City continues at this rate, by the end of this current year, they will have turned in a surplus of something approaching $1.5 million. On the expenditure side, many of the parks projects are almost fully committed as they have been 90% of those either spent or encumbered. The other main items of expenditure, one is for the Convention Centre, you have $1.6 million in your budget in respect of that. As previously stated, they just spent some money, but thankfully, they had a little bit extra money. The other projects that are still to come to pass are the item for the lift station, you have $250,000 in there, which remains in the budget, but is uncommitted, and you have some contingencies and other project costs. All in all, they are in excellent shape. 5. MANAGER'S REPORT a. The next Baytown Municipal Development District meeting is scheduled for Thursday, March 4, 2021, at 4:30 p.m., in the Council Chamber located at City Hall, 2401 Market Street, Baytown, Texas, 77520. General Manager Rick Davis stated that the correct meeting date is Thursday, April 1, 2021, for the next scheduled Municipal Development District meeting. 6. ADJOURN With there being no further business to discuss, President Capetillo adjourned the March 4, 2021, MDD Board Special Meeting at 6:27 P.M. OJK� CKA Angela JacUson, Acting Assistant Secretary = _ City of Baytown = y