2003 08 18 WS MinutesMINUTES OF THE WORK SESSION
OF THE CITY COUNCIL OF THE CITY OF BAYTOWN
August 18, 2003
The City Council of the City of Baytown, Texas, met in work session on August 18, 2003, at
4:00 p.m. in the Council Chamber of Baytown City Hall, 2401 Market Street, Baytown, Texas,
with the following in attendance:
Ronnie Anderson
Coleman Godwin
Calvin Mundinger
Don Murray
Mercedes Renteria III
Scott Sheley
Pete C. Alfaro
Gary Jackson
Bob Leiper
Gary W. Smith
Council Member
Council Member
Council Member
Council Member
Council Member
Council Member
Mayor
City Manager
Assistant City Manager
City Clerk
The meeting was opened with a quorum present after which the following business was
conducted:
Discuss progress report on the redevelopment of San Jacinto Mall.
Don Murray, City Council Member and Chairman of the Redevelopment Authority explained the
purpose of the meeting and that the information should be provided to both boards at the same
time. Gary Jackson, City Manager, related that the information would provide an update on the
status of Tax Increment Reinvestment Zone 1. Mall redevelopment is a key component in the
$42,000,000 Financing Plan for the Zone. The City has $4,000,000 from the sale of certificates
of obligation for the construction of a conference center. The Financing Plan provides
$2,000,000 for the construction of a conference center. Mall redevelopment will have an impact
on property tax, sales tax revenues, and spillover development. Staff and the Redevelopment
Authority are seeking direction from Council on issues related to the conference center.
Primarily, if a conference center is to be built, should it be Mall- integrated or stand -alone in the
TIRZ? DP Consulting provided information that a stand -alone conference center is more
expensive. If the conference center is Mall- integrated, it could be operated by the Mall and the
developer's expenses could be eligible for reimbursement from the tax increments.
Bill Calderon, Hawes, Hill & Associates, reviewed the revenues based on four scenarios. He
noted that $32,000,000 of the $42,000,000 in the Financing Plan was designated for
repositioning of the Mall. It is in the best interest of the City to make the improvements. The
scenarios are as follows:
• Scenario 1— Satellite college, conference center, 10 more pad sites, a junior anchor, a
lifestyle center and a power center.
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Minutes of the Work Session – August 18, 2003
• Scenario 2—One pad site per year and no junior anchor for several years.
• Scenario 3— Satellite college.
• Scenario 4— Conference center.
The assumptions included in the study involve the participation of Lee College and Harris
County. There is no commitment for Lee College to participate at the present time. Mr.
Calderon reviewed the income potential of the various developments in the scenarios. Under
Scenario 1, the property tax would increase from $736,000 in 2004 to $9.1 million in 2010.
Sales tax revenues would increase from $1.3 million to $3.3 million during the same interval.
Under Scenario 2, ad valorem taxes would increase to $6.3 million and sales tax revenue would
increase to $1.6 million in 2010. In Scenarios 3 and 4, property tax would increase a cumulative
$24 million and sales tax would increase a cumulative $10 million.
Mr. Calderon explained the benefit to Lee College for participating in the Zone. They would
have a dedicated revenue steam for improvements and, upon the end of the TIRZ, the College
would receive taxes based on the increased valuations.
Council Member Murray explained that the Redevelopment Authority seeks to understand
Council's comfort level on a conference center at the Mall. If Council is supportive, the
Redevelopment Authority can develop more information. Mayor Alfaro asked if the Council
wants the City to be in the business of owning a conference center. Council Member Murray
noted that if a conference center is to be constructed the most economic arrangement is mall -
integrated.
Council Member Mundinger expressed that it was not reasonable to include Lee College in the
projections, therefore Scenario 1 should be eliminated. Council Member Godwin stated that the
City should be out of private enterprise. Council Member Sheley stated that the City could not
afford to develop another money loser. Council Member Anderson stated that he would not
support a project that would lose money.
Mr. Jackson stated that the staff is seeking guidance on the future of the bonds. Staff will bring
to Council information on defeasing the bonds and will provide Council with DP Consulting's
study on the conference center.
Discuss Harris County TIRZ participation and the proposed project to be funded by
Harris County tax increments.
Mr. Jackson related that the County was interested in participating in the TIRZ and desired the
realignment of John Martin Road at Cedar Bayou - Lynchburg Road to match Bush Road. The
inclusion of this project will require annexation and the extension of the TIRZ boundaries.
Assistant City Manager Bob Leiper reviewed the summary of costs for the project and
acknowledged the work of the Legal Department and Engineering Department in compiling the
information. The proposed realignment would have the minimal impact on property and
structures. The project would improve mobility.
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Minutes of the Work Session — August 18, 2003
r. Mr. Jackson stated that the County would participate to 75% of the County's base tax rate. The
County's increment would be used to secure the bonded indebtedness that would be issued to
pay for the project.
Discuss a regional detention project as a joint venture City/TIRZ,
Mr. Jackson reminded Council of the bond funds that were dedicated to land acquisition for
regional storm water detention. A potential detention area has been identified, along the Hutton
ditch, which could serve the Country Club Manor development in TIRZ 1. The development of
a regional detention facility in this area will allow the developer to use an off -site area that may
be eligible for reimbursement. This will allow the developer to use his more desirable property
for home sites. The regional facility can serve other development.
Council Member Murray and Board Member Strausser expressed support for the concept.
Adjourn.
There being no further business, Council Member Mundinger moved adjournment. Council
Member Renteria seconded the motion. The vote follows:
Aye: Council Members Anderson, Godwin, Mundinger, Murray, Renteria, and Sheley.
Mayor Alfaro
Nay: None.
The motion carried and the meeting adjourned at 6:04 p.m.
Gifiy W. Smith
City Clerk
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