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2021 06 03 MDD MinutesMINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT June 3, 2021 The Board of Directors of the Baytown Municipal Development District (MDD) met in a Regular Meeting on Thursday, June 3, 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 Mary Hernandez Director Heather Betancourth Director Jacob Powell Director Mike Lester Director David P. Jirrels Director Rick Davis General Manager Karen Horner General Counsel Angela Jackson Acting Assistant Secretary President Brandon Capetillo convened the June 3, 2021, MDD Board Regular Meeting with a quorum present at 4:33 P.M., all members were present with the exception of Director Charles Johnson, Director Suhey Rios -Alvarez, and Director Gary Englert, who were absent. 1. MINUTES a. Consider approving the minutes of the Municipal Development District Regular Meeting held on April 1, 2021. b. Consider approving the minutes of the Municipal Development District's Special Meeting held on April 15, 2021. A motion was made by Director Mike Lester and seconded by Director Jacob Powell to approve the meeting minutes with regards to agenda items La. through l .b., as submitted. The vote was as follows: Ayes: President Brandon Capetillo, Vice -President Chris Presley, Secretary Laura Alvarado, Director Mary Hernandez, Director Heather Betancourth, Director Jacob Powell, Director Mike Lester, Director David P. Jirrels, Director Gary Englert Nays: None Other: Director Charles Johnson (Absent ), Director Suhey Rios -Alvarez (Absent) and Director Gary Englert (Absent) MDD Board Regular Meeting Minutes June 3, 2021 Page 2 of 7 Approved 2. BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT FY 2021-22 PROPOSED BUDGET a. Discuss the Baytown Municipal Development District's Fiscal Year 2021-22 Proposed Budget and budget process. General Manager Rick Davis presented the item and began by thanking the staff that worked so diligently on the Baytown Municipal Development District's Fiscal Year 2021-22 proposed budget as this is one of the most significant budgets. Mr. Davis noted that the City anticipated some impacts on the current budget year on sales tax due to COVID, but fortunately did not materialize. The City is projecting about 6.637 million dollars in revenue for the MDD and noted that the three most prominent parts of the MDD budget being: 1) Economic Development Projects, 2) Utility Projects, and 3) Parks Projects. Mr. Davis wanted to highlight some items in regards to the new nature inside of economic development, the first being that the City has made some changes to the Business Improvement Grant Program and the Baytown Revolving Loan Fund. They are proposing $200,000 to be allocated to the Business Improvement Grant Program, and $50,000 be appropriated to the Revolving Loan Fund. In regards to the Hotel and Convention Center debt payment of 1.4 million dollars, Mr. Davis stated they are expecting to receive the bond rating for the A and B series bonds on the Hotel Convention Center from Standard and Poor's, which will set in motion a number of other things that will enable the City to hopefully set a date for a groundbreaking. Forthcoming, the directors will be receiving the Hotel Service Agreement and a number of other ancillary agreements that will solidify the project and get it off the ground. He stated that another initiative occurring in the proposed expenditures for economic development projects, is the addition of a Business Retention Coordinator. The MDD has supported the City of Baytown Economic Development Manager for the last three years, and the City would like to add a person that would add strength to the economic development program, which among other things, this person would promote economic development, tools to small businesses, and potential businesses, including the Business Improvement, the Revolving Loan Fund, and the Revitalization Incentive Zone. The Business Retention Coordinator would be the point person for small business development and entrepreneurship opportunities in the city, especially in the key revitalization areas. They would meet with local small businesses facing challenges who require guidance, work with the city property list to sell commercial and real estate parcels, get them back on the tax rolls, and work with the owners of vacant building to promote the utilization of the buildings. Mr. Davis stated that the City of Baytown continues to grow as a community, the demands for services from the City particularly of an economic development nature continue to blossom and grow as well. The City Council has in the past designated Economic Development as a priority. He recalled Secretary Laura Alvarado discussing the need for Business Retention Services, and to provide support to the lower altitude of economic development. In order to accommodate direction in Economic Development, the staff is proposing to make some modifications to the Brunson Theater to provide some office space for the new program. The office space has not been designed MDD Board Regular Meeting Minutes June 3, 2021 Page 3 of 7 as of now, however, there are authorized funds in the budget to provide the opportunity to design the space in order to provide vital economic development functionality, programs, and contributing energy to Texas Avenue. Mr. Davis stated that the reasons listed, are reasons he would advocate and ask for support in the expenditures. Mr. Davis proceeded to provide an overview of the Utility Projects, which consist of an allocation for the I-10 Lift Station at $750,000, as well as the contribution to the Debt Service which has been done over the last several years to the Northeast Wastewater Plant project of $958,000. Mr. Davis also provided a summary of some new items under the Parks Projects, such as the Goose Creek Trail Phase 7, Newcastle Phase 2 and 3, Baytown Nature Center Wetlands Overlook Walkway, and Evergreen Water Replacement and Decking. There is also the perfect trail implementation on Goose Creek Trail and the Baytown Nature Center at $350,000, and finally the City is proposing that it address the landscaping at Town Square in order to create an environment that is mostly composed of artificial turf. The reason is not to cut the amount of maintenance that needs to be done, but provide a more stable, suitable, and useful environment. lie further noted that the City has some unspent funds due to the sales tax being so robust. The new revenue that the City is expecting is $6.6 million and the City is proposing to be quite aggressive in terms of Economic Development Projects, Utility Projects, and Park Projects. Mr. Davis complimented the staff for the feedback that allowed the budget to be brought before the Municipal Development District, and staff from the Finance, Parks and Recreation, and the Public Works Departments were available to answer any questions the directors had. President Brandon Capetillo opened the floor for questions in regards to the proposed budget. Director Chris Presley asked whether the two programs are different compared to what was voted on in the last meeting in regard to the Revolving Loan Program and the Grant Program, to which General Manager Rick Davis answered no, that it is congruent to what was shared at the previous meeting. Director Presley stated that as far as the economic development component, they have taken two attempts to bring it in-house and it has not worked out, and the current attempt would be the third, and it seems to be a work in progress. In addition, he noted that the City pays hundreds of thousands of dollars to an outside contractor for economic development services, which is to the Economic Development Foundation. He believes that Mr. BJ Simon with the EDF is the ultimate professional when it comes to taking the lead in economic development, but Director Presley stated he wishes it would have gone in-house years ago. General Manage Davis stated that Director Presley had valid comments and explained the City of Baytown's perspective, as he does not believe the City is on the third attempt. The City has begun to invest in a program for lower altitude economic development problem resolution on a business level. He noted that Mr. BJ Simon has never been utilized by the City for the lower altitude economic development work. The City views it as community -based economic developments and industrial -based economic developments. He noted how Secretary Alvarado has spoken about the mom and pop shops that have been glossed over or taken for granted, and the City has not had enough outreach for those businesses. The City has vacant buildings, properties on the City rolls that need to be put back on the tax rolls. There are many things that still need to be done and that MDD Board Regular Meeting Minutes June 3, 2021 Page 4 of 7 the City Council prioritized everything, and Mr. Davis just supplied the person that would help in that regard. The City really needs something of a lower elevation and it needs to maintain the presence and efforts on the macro industrial level. The Business Retention Coordinator would provide more of a hometown effort. Secretary Laura Alvarado noted that the City has a great opportunity to bounce some of the small business outreach efforts to the Chamber, and ensured that they are engaged with the City whether it is helping with retention or with growth. A partnership with the Chamber would facilitate the needs rather than bring in a brand-new person. She also stated that she is not opposed but would like to see exactly what the future is for that proposition, and if the City can utilize and grow the partnership with the Chamber. General Manager Davis stated he will assure the Directors get a copy of the responsibilities from Brett to the Business Retention Coordinator, and agreed with Secretary Alvarado in regards to the Chamber, however does not believe the Chamber will assist in filling vacant buildings or necessarily market our vacant properties such as the Business Retention Coordinator. Director Mike Lester stated he agreed with Secretary Alvarado and believes there is an opportunity to establish better relations between the City and the Chamber and it is something the City has missed for a long time and must be developed. Director Lester believed that the Community Development Manager Chris Chavis is more than capable of developing that relationship. The concern Director Lester has is that the MDD was first created to fund projects and is moving towards funding staff. Mr. Lester noted he is not opposed; however, the Directors have to be aware and cautious moving forward in regards to the need for staff, staff buildings, staff cars, which would cause it to grow. Director Mike Lester stated that if the district were to create a position it should not be eliminated down the line, and to be cautious in doing so. Secretary Alvarado and Director Presley agreed with Director Mike Lester's comments. Director Presley had additional comments including the addition of the first position created two years ago, and the Directors fight to advocate for money in the programs, more money toward overhead, less money in the programs. There is a vacant building ordinance, which has not been enforced due to lack of political will and the solution would not be one or two people the solution would be money. Mr. Presley was glad the Chambers of Commerce was a topic of conversation as it is missed opportunity and clarified that at one point in time part of the EDS role was to help in not only the old downtown area but in all parts of old Baytown, but slowly that went away. Mr. Presley stated that he has expressed his hesitation and that although he is not necessarily opposed, he has to believe in what he votes on. President Capetillo agreed, and stated that he would like to see what the new role would look like for Bret Gardellas's position as well as the new proposed position and how success would be measured. He further noted that vacant buildings should be handled by brokers as they do not get paid unless the building is occupied and that is at the brokers expense not the City of Baytown's. Director Chris Presley agreed with President Capetillo' s comments and that it was a great idea as there are a lot of opportunities to engage contractors on a commission basis and zero overhead to generate results. President Capetillo was glad the conversation was being held early to provide direction that is needed to meet the timelines that were presented the to the Directors. MDD Board Regular Meeting Minutes June 3, 2021 Page 5 of 7 Director Mary Hernandez discussed the possibility of adding an incentive for the broker to handle the vacant buildings and manage them quickly to which President Capetillo agreed. Director Jacob Powell asked when the Parks and Recreation Master Plan would be completed, and when the final copy would be given to the Directors to ensure all the projects are aligned with the objectives and goals the District is seeking. Park Planner Cornell Gordon answered that the last changes were being done this week and hoped to send out the final plan by the end of the month, so they can vote on it in July. Assistant City Manager Kevin Troller stated the general nature of the master plan and macro nature of these projects would certainly fit in the objectives of the district. President Capetillo stated he liked the proposed budget and what he saw, he is happy to see more trails and improvements to the Nature Center. The artificial turf in Town Square is needed, especially during events. President Capetillo noted that the Directors should consider a pet relief area at Town Square for the people that bring their pets out and allows them to be taken care of on a special pet friendly turf. The MDD wants to make sure the Economic Development project is done right as it is initiation process, and must be measured, engaged, and define its success. General Manager Rick Davis stated that the delineation of responsibilities of the two positions, will allow the measurement of productivity of these positions as the Economic Development program is flushed with outcome measure potential. Director Presley stated he would like to see an incorporated measurement of the first new position before the formal vote on the second position. b. Consider a resolution setting a public hearing regarding the Baytown Municipal Development District's Fiscal Year 2021-22 Proposed Budget. A motion was made by Secretary Laura Alvarado and seconded by Director Mary Hernandez to set a public hearing regarding the Baytown Municipal Development District's Fiscal Year 2021- 22 proposed budget on July 1 ", 2021 Resolution No. 416, related to Item 2.b. The vote was as follows: Ayes: President Brandon Capetillo, Vice -President Chris Presley, Secretary Laura Alvarado, Director Mary I iemandez, Director Heather Betancourth, Director Jacob Powell, Director Mike Lester, Director David P. Jirrels Nays: None Other: Director Charles Johnson (Absent ), Director Suhey Rios -Alvarez (Absent) and Director Gary Englert (Absent) Approved RESOLUTION NO. 416 MDD Board Regular Meeting Minutes June 3, 2021 Page 6 of 7 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT, ESTABLISHING THE DATE, TIME AND PLACE FOR A PUBLIC HEARING ON THE FISCAL YEAR 2021- 2022 PROPOSED BUDGET; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. 3. PROPOSED RESOLUTIONS a. Consider a resolution amending the Municipal Development District's Fiscal Year 2021- 21 Budget in order to transfer monies from Unforeseen/New Initiatives for the purpose of Newcastle Park Project. Director of Finance Victor Brownlees presented the item and stated that General Manager Davis had already discussed the benefit of additional sales tax revenues in the current year. The item has been previously considered and the intention is to utilize resources within the Capital Improvement Plan. A motion was made by Director Heather Betancourth and seconded by Director Mike Lester to consider Resolution No. 417, related to Item 3.a. The vote was as follows: Ayes: President Brandon Capetillo, Vice -President Chris Presley, Secretary Laura Alvarado, Director Mary Hernandez, Director 1leather Betancourth, Director Jacob Powell, Director Mike Lester, Director David P. Jirrels Nays: None Other: Director Charles Johnson (Absent ), Director Suhey Rios -Alvarez (Absent) and Director Gary Englert (Absent) Approved RESOLUTION NO.417 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT AMENDING THE BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT'S FISCAL YEAR 2020-2021 BUDGET BY REPROGRAMING THREE HUNDRED FIDTY THOUSAND AND NO.100 DOLLARS ($350,000.00) FROM UNFORESEEN/NEW INITIATIVES TO THE NEWCASTLE PARK PROJECT MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EDDECTIVE DATE THEREOF. 4. REPORTS MDD Board Regular Meeting Minutes June 3, 2021 Page 7 of 7 a. Receive the Baytown Municipal Development District's Quarterly Financial and Investment Reports for the Quarter Ending March 31, 2021. Director of Finance Victor Brownlees presented the Baytown Municipal Development District's Quarterly Financial and Investment Reports for the Quarter Ending March 31, 2021. He stated that the City's sales tax revenues continue to be robust despite the pandemic. The returns for February and March are astounding, however, he would not suggest the trend to continue. The City is anticipating three and a half percent in sales tax collections, which is healthy and leaves the City in a good position. The resources give the city substantial additional funding in next year's budget. In regards to the expenditure side, Mr. Brownlees stated that in the current year's budget, it has some underspends, however, much of that relates to some of the economic development activities, such as the Hotel Convention Center. He noted that General Manager Davis had conveyed that the City is fully funding the Hotel Convention Center going forward. The Citizens Bank refurbishment will take place next year and is fully funded. The City has spent almost the maximum on the Parks Projects in the current year. Mr. Brownlees concluded that the City is in a healthy position with the current year and in an incredibly robust position going into the next budget year. 5. MANAGER'S REPORT a. The next Baytown Municipal Development District meeting is scheduled for Thursday, July 1, 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, July 1, 2021. President Capetillo asked if there would be a foreseeable special meeting to which Mr. Davis stated staff would consult with the members prior to scheduling a special meeting. 6. ADJOURN With there being no further business to discuss, President Capetillo adjourned the June 3, 2021, MDD Board Regular Meeting at 5:08 P.M. Angela Jack n, City of Baytowr