2021 04 15 MDD Minutes, SpecialMINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS
OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT
April 15, 2021
The Board of Directors of the Baytown Municipal Development District (MDD) met in a Special
Meeting on Thursday, April 15, 2021, at 4:30 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 (Teleconference)
Suhey Rios -Alvarez
Director
Charles Johnson
Director
Jacob Powell
Director (Teleconference)
Mike Lester
Director
David P. Jirrels
Director
Gary Englert
Director
Rick Davis General Manager
Karen Horner General Counsel
Angela Jackson Acting Assistant Secretary
President Brandon Capetillo convened the April 15, 2021, MDD Board Special Meeting with a
quorum present at 4:36 P.M., all members were present with the exception of Director Heather
Betancourth and Director Mary Hernandez, who were both absent.
1. Discussion..
a. Discuss the timeframe and the next steps for Hotel and Convention Center Project.
(Via Zoom) Mr. David Dawson presented the item and noted that Mr. Stephen Galbreath with
Garfield Public/Private was in attendance and would provide more detail regarding the cost
increases from the subcontractors on the project, as well as, the timeline of the transaction process.
He stated that some contractors held their bids to the end of March, whereas, the manufacturing
market supply prices increased for some of the subcontractors. Additionally, he noted that the City
restarted the process for the project and updated Standard and Poor's to include budget costs
documentation.
Director of Finance, Victor Brownlees presented an introduction to the budget and noted that in a
previous meeting, the Board agreed to certain increases in the budget line items that were a result
of a fundamental review of the overall development budget. He noted that staff recommended a
necessary increase to the construction contingency which would show the rating agency that the
City recognized the issue related to the construction market and made provisions for any additional
cost escalations and further noted that the contingency was not a commitment to actually pay any
money. He further noted that the money was not an additional in terms of the resources coming
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April 15, 2021
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from the MDD, but would take funds already set aside from previous years debt fund and be
transferred into the contingency. Additionally, he emphasized that it was not a further increase to
the call on the reserve to the resources of the MDD.
The consensus of the committee was to approve the additional contingency to assure for purchase
purposes in June.
Mr. Brownlees further noted that more delays from the City would snake for more difficulties,
therefore, the City should get as many contractors on -site to get the work underway as the
development would create a cornucopia of economic development benefits.
Further during the presentation, Mr. Dawson noted that the closing for the project was tentative
for July 01, 2021. He stated that the process in order to close*included getting the confinned rating
from the rating agency. He stated that the rating was necessary to have before the City could hold
a MDD meeting to approve all of the substance and documents for the project's transaction. He
mentioned the timefratne of mid to late May for having the rating prepared and noted that once
everything was approved by the City, the project would immediately go to the financial market.
Mr. Dawson stated that the City would work with the Office of the Attorney General for a sign -
off on the final executed documents then have the closing process. He stated that there was verbal
confirmation that the comptroller was fine with the structure, whereas, the estimated $2.8 million
dollars in construction, sales taxes, and construction supplies and sources were exempt, but noted
that the preference was that this be in writing, therefore, the comptroller was in the process of
working on that analysis.
President Brandon Capetillo inquired of further questions from the committee members, in which
there were none.
2. PROPOSED RESOLUTIONS
a. Consider a resolution repealing Resolution No. 410 and adopting a revised budget for
the Baytown Hotel Convention Center Project.
A motion was made by Secretary Laura Alvarado and seconded by Director Mike Lester to
reconsider 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
Other: Director Heather Betancourth (Absent ) and Director Mary Hernandez (Absent)
Approved
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April 15, 2021
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RESOLUTION NO. 410
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
MUNICIPAL DEVELOPMENT DISTRICT REPEALING RESOLUTION NO.
389, 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 THEROF.
A motion was made by Director Charles Johnson and seconded by Secretary Laura Alvarado to
approve Resolution No. 415, 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
Other: Director Heather Betancourth (Absent) and Director Mary Hernandez (Absent)
Approved
RESOLUTION NO. 415
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN
MUNICIPAL DEVELOPMENT DISTRICT REPEALING RESOLUTION NO.
410, 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 THEROF.
Director Mike Lester requested a clarification in regards to the revised budget. Mr. Brownlees
stated there was an additional $1.8 million to the contingency from the debt, which was the only
amendment to the budget.
3. MANAGER'S REPORT
a. The next Baytown Municipal Development District meeting is scheduled for
Thursday, May 6, 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 next MDD meeting date was scheduled for Thursday,
May 6, 2021.
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April 15, 2021
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4. ADJOURN
With there being no further business to discuss, President Capetillo adjottmed the April 15, 2021,
MDD Board Special Meeting at 4:48 P.M.
J
Angela Ja son, Acting Assistant Secretary
City of Baytown