HomeMy WebLinkAboutMinutes Reinvestment Zone No. 3 - 08/27/2019 City of Corpus Christi 1201 Leopard Street
Corpus Christi,TX 78401
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Meeting Minutes
Reinvestment Zone No. 3
Tuesday,August 27,2019 9:30 AM City Council Chambers
Persons with disabilities who plan to attend this meeting and who may need auxiliary
aids or services are requested to contact the City Secretary's office (at 361-826-3105) at
least 48 hours in advance so that appropriate arrangements can be made.
A. Chairman Everett Roy to call the meeting to order.
Chairman Roy called the meeting to order at 9:31 a.m.
B. City Secretary Rebecca Huerta to call roll of the Corporation Directors.
Secretary Rebecca L. Huerta called the roll and verified that a quorum of the
Board was present to conduct the meeting. Board Member Guajardo arrived at
9:32 a.m.
Present 11 - Chair Everett Roy, Board Member Roland Barrera, Board Member Rudy
Garza, Board Member Paulette Guajardo, Board Member Gil Hemandez,
Board Member Michael Hunter, Board Member Susan Hutchinson, Board
Member Al Jones, Board Member Joe McComb, Board Member Greg
Smith, and Vice Chair Carolyn Vaughn
Absent 1 - Board Member Ben Molina
C. PUBLIC COMMENT:
Chairperson Roy referred to Public Comment.There were no comments from
the public.
D. MINUTES:
1. Approval of Minutes of the July 23, 2019 Regular Meeting
Chairman Roy referred to approval of minutes. Board Member Garza made a
motion to approve the minutes,seconded by Board Member Hunter and
passed unanimously(Board Member Molina-absent).
E. FINANCIAL REPORT:
2. TIRZ#3 Financial Reports as of June 30, 2019
Chairman Roy referred to Item 2.Treasurer Constance Sanchez presented the
financial report for Tax Reinvestment Zone No. 3 ending June 30, 2019
including:total assets; revenues; expenditures; commitment reports; and fund
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Reinvestment Zone No.3 Meeting Minutes August 27, 2019
balance.
F. EXECUTIVE SESSION ITEMS:
Chairman Roy referred to the day's Executive Session Items. Board Members
went into executive session at 9:34 a.m.Board Members returned from
executive session at 10:00 a.m.
3. Executive Session pursuant to Texas Government Code § 551.071
and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to
consult with attorneys concerning legal issues related to economic
development agreement(s) involving 31102 LLC and/or other persons or
entities desiring to engage in commercial development at or in the vicinity
of 201 S Chaparral Street; and pursuant to Texas Government Code
§ 551.087 to discuss or deliberate regarding commercial or financial
information relating to some or all of the aforementioned matter(s) or
entities that the governing body seeks to have locate, stay, or expand
within the City limits and with which the governing body is conducting
economic development negotiations and/or financial or other incentives
involving said business prospect, and possible action related to the
aforementioned matters in open session.
Chairman Roy referred to Item 3 and the following motion was considered:
Motion directing the City,as an agent of TIRZ#3,to prepare a Downtown
Development Reimbursement Agreement with 31102 LLC,for improvements to
the property located at 201 South Chaparral Street for a total incentive amount
not to exceed$200,000 under the Downtown Living Initiative grant program,
the incentive being contingent on the subsequent execution of an agreement
and approval of the agreement by the Board.
Board Member Guajardo made a motion to approve the Motion,seconded by
Board Member Garza and passed unanimously(Board Member Molina-
absent).
4. Executive Session pursuant to Texas Government Code§ 551.071
and Texas Disciplinary Rules of Professional Conduct Rule 1.05 to
consult with attorneys concerning legal issues related to economic
development agreement(s) involving 807 N Upper Broadway, LLC and/or
other persons or entities desiring to engage in commercial development
at or in the vicinity of 807 N Upper Broadway; and pursuant to Texas
Government Code § 551.087 to discuss or deliberate regarding
commercial or financial information relating to some or all of the
aforementioned matter(s) or entities that the governing body seeks to
have locate, stay, or expand within the City limits and with which the
governing body is conducting economic development negotiations and/or
financial or other incentives involving said business prospect, and
possible action related to the aforementioned matters in open session.
Chairman Roy referred to Item 4 and the following motion was considered:
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Motion directing the City,as an agent of TIRZ#3,to prepare a Downtown
Development Reimbursement Agreement with 807 N. Upper Broadway, LLC,
for improvements to the property located at 807 N. Upper Broadway for a total
incentive amount not to exceed$520,000,which consists of reimbursement of
75%of the increased tax increment paid to the TIRZ#3 over 10 years,or until
expiration of the TIRZ#3, under the Project Specific Development Agreement
grant program,the incentive being contingent on the subsequent execution of
an agreement and approval of the agreement by the Board.
Board Member Garza made a motion to approve the Motion,seconded by
Board Member Vaughn and passed unanimously(Board Member Molina-
absent).
G. AGENDA ITEMS:
11. Motion to approve a TIRZ#3 redevelopment letter for the 1914 Nueces
County Courthouse regarding a potential reimbursement of TIRZ#3 ad
valorem property tax until the expiration of the Reinvestment Zone
Number Three.
Chairman Roy deviated from the agenda and referred to Item 11. Executive
Director of the Downtown Management District(DMD)Alyssa Barrera Mason
stated that the purpose of this agenda item is to approve a TIRZ#3
redevelopment letter for the 1914 Nueces County Courthouse regarding a
potential reimbursement of future TIRZ#3 ad valorem property taxes for a
future development.
Board Members, Nueces County Judge Barbara Canales,and Ms.Mason
discussed the following topics: Texas Historical Commission restrictions on the
courthouse; Nueces County securing a grant through the National Park Service,
in conjunction with the Texas Historical Commission, in the amount of
$150,000; cleaning up the courthouse and grounds; interest in developing the
courthouse property;the recently completed feasibility study;the impact on the
courthouse property from changes to rights-of-way resulting from the eventual
removal of the existing Harbor Bridge;a timeline regarding development of
the courthouse property; rebating TIRZ#3 property taxes as an incentive to
development;creating an incentive package for potential developers and if
doing so creates a precedent for TIRZ#3;the potential increase in value of the
courthouse property once the existing Harbor Bridge is removed; delinquent
property taxes owed on the courthouse;the current availability/inventory of
vacant properties downtown; Nueces County and the City of Corpus Christi
working in cooperation with each other to facilitate the development of the
courthouse property;the potential economic impact of developing the
courthouse property;the negative impact of Fire Station Number l's proximity
to the courthouse property; relocating Fire Station Number 1,which serves
North Beach,due to changes in access to the new Harbor Bridge and to relieve
the negative impact of the station's proximity to the courthouse property;the
cost to relocate Fire Station Number 1; potential uses for the Fire Station
Number 1 property in relation to developing the courthouse;the Texas
Department of Transportation's process for making properties surplus; Nueces
County and the City working in cooperation with the Regional Transportation
Authority(RTA)and the Metropolitan Planning Organization(MPO)to designate
properties as surplus; petitioning the Texas Legislature to change existing
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statutes that prohibit the forgiveness of delinquent property taxes;the
impediment created by the statutory prohibition on the forgiveness of
delinquent property taxes;the dollar amount of the delinquent taxes versus
additional fees and penalties thereon;the potential to forgive penalties and
interest on the delinquent taxes owed;and if approval of the proposed motion
would create restrictions on the type of development.
Board Member Vaughn made a motion to approve Item 11,seconded by Board
Member Hunter and passed unanimously(Board Member Molina-absent).
5. Resolution to approve the Proposed FY 2020 Tax Increment
Reinvestment Zone Number Three Board Operating Budget
Chairman Roy referred to Item 5. Director of the Office of Management and
Budget Eddie Houlihan presented the proposed FY 2020 Tax Increment
Reinvestment Zone Number Three(TIRZ#3)operating budget.
A board member asked for clarification regarding revenue from property taxes.
Board Member Barrera made a motion to approve Item 5,seconded by Board
Member Garza and passed unanimously(Board Member Molina-absent).
6. Motion to approve nine additional Corpus Christi Police Department
surveillance cameras in the Corpus Christi Downtown in the amount of
$3,510 to be purchased with funding currently encumbered for this
purpose.
Chairman Roy referred to Item 6. Business Liaison Arlene Medrano stated that
the purpose of this item is to approve funding for nine additional cameras in
the downtown area.
Business Liaison Medrano presented information on the following topics: the
locations of cameras currently installed;the proposed locations of the nine
additional cameras proposed;and the cost. There were no comments from
board members.
Board Member Barrera made a motion to approve Item 6,seconded by Board
Member Garza and passed unanimously(Board Member Molina-absent).
7. Motion recommending that City Council approve an Interlocal
Cooperation Agreement between the City of Corpus Christi and the
Corpus Christi Downtown Management District (DMD) for improvements
to Artesian Park and encumbering $150,000 of FY 2019 budgeted funds
for said improvements to become effective once approved by City
Council.
Chairman Roy referred to Item 7. Business Liaison Arlene Medrano presented
information on the following topics related to proposed improvements to
Artesian Park: purpose;site; location of Artesian Park; approval timeline;
project timeline;oversight; and maintenance.
Board Members, Business Liaison Medrano and Executive Director of the
Downtown Management District Alyssa Barrera Mason discussed the following
topics:the cost of erecting a fence around the park; protecting investment in
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the park;controlling access to the park; restricting access to the park after
hours; opposition to erecting a fence around the park;separating the phase
proposed in this agenda item from installation of a fence around the park;
maintenance of pet waste stations;the potential impact on the park of
improvements to Twigg Street that are part of the new Harbor Bridge project;
installing surveillance cameras to monitor park activity;that adding lighting to
the park is a priority;adding hedges to define the park's boundary;security
concerns; adding to this agenda item fencing,as Phase 2;that installation of
fencing would require the allocation of additional funds; the type of activity
that occurs in the park at night;and the need to approve this agenda item in
order to move forward with wrapping trees in the park with lights for
Christmas.
Board Member Garza made a motion to approve Item 7, including direction to
staff to bring back to the TIRZ#3 a Phase 2,to include a fence or landscaping
barrier,seconded by Board Member Hunter and passed unanimously(Board
Member Molina-absent).
8. Motion to approve a TIRZ#3 Downtown Development Reimbursement
Agreement for Gift & Gallery Shop with K Space Contemporary for
improvements to the property located at 623 N Chaparral Street for a
total incentive amount not to exceed $6,490
Chairman Roy referred to Items 8-10. There were no comments from board
members.
Board Member Smith made a motion to approve Items 8- 10,seconded by
Board Member Jones and passed unanimously, by one vote(Board Members
Hunter and Molina-absent).
9. Motion to approve a TIRZ#3 Streetscape Reimbursement Agreement
with Tim Clower for improvements to the property located at 623 N
Chaparral Street for a total incentive amount not to exceed $20,075
This item was passed by one vote(see Item 8).
10. Motion to approve a TIRZ#3 Streetscape Reimbursement Agreement
with Americano Properties for improvements to the properties located at
415 &419 Peoples Street for an incentive amount not to exceed $76,450
and a sidewalk repair to be performed by the City not to exceed $17,000
for a total incentive amount not to exceed $93,450
This item was passed by one vote(see Item 8).
12. Motion to approve Amendment No. 2 to the TIRZ#3 Downtown
Development Reimbursement Agreement for Shoreline Hospitality, LP, at
311 S. Shoreline Blvd. which provides that the Developer must complete
improvements on or before November 30, 2019, effective upon signature
by the City Manager.
Chairman Roy referred to Item 12. Executive Director of the Downtown
Management District Alyssa Barrera Mason stated that the purpose of this item
is to extend the completion date requirement to November 30, 2019 due to the
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impact of recently imposed tariffs on furniture and fixtures from China is
having on meeting the existing completion date requirement.
There were no comments from board members.
Board Member Garza made a motion to approve Item 12,seconded by Board
Member Smith and passed unanimously(Board Members Hunter and Molina-
absent).
H. PRESENTATION ITEMS:
13. Funding and Grant Update for the Ritz Theatre and TIRZ#3 MOU
executed in August 2018.
Chairman Roy referred to Item 13. Executive Director of the Downtown
Management District Alyssa Barrera Mason presented information on the
following topics related to the Ritz Theater: background; memorandum of
understanding(MOU)details;TSI feasibility study;funding and grant update;
and next steps.
There were no comments from board members.
MOTION OF DIRECTION
Board Member Smith made a motion directing General Manager Peter Zanoni
to implement Option 1,as presented,seconded by Board Member Hunter and
passed unanimously(Board Member Molina-absent).
14. Presentation on the Proposed Seawall Steward Program
Chairman Roy referred to Item 14 and announced that this item is postponed to
the next TIRZ#3 meeting.
15. Monthly update of the TIRZ#3 Approved Programs and Initiatives -
August 2019
Chairman Roy referred to Item 15. Business Liaison Arlene Medrano presented
the August 2019 Update of TIRZ#3 Programs and Initiatives. There were no
comments from board members.
I. IDENTIFY FUTURE AGENDA ITEMS:
Chairman Roy referred to Identify Future Agenda Items. The following item
was identified: the presentation ori the proposed seawall steward program,
postponed from today's meeting. /
J. ADJOURNMENT
The meeting was adjourned at 11:07 a.m.
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*Regardless of the agenda heading under which any item is listed,any word or phrase of any item listed on this agenda shall
be considered a subject for consideration for purposes of the Texas Open Meetings Act and other relevant laws,and the
Board of Directors may deliberate and vote upon any such subject and resolutions related thereto.Any descriptions of
property or amounts stated in this agenda are descriptive and not restrictive.and property and amounts may be changed in
the motions,actions or documents. In addition to other items listed in this agenda.policies and procedures of this
corporation,legal analysis of any items.policies or procedures,and any items that are currently receiving funding from this
corporation may be discussed and deliberated and these matters are added as subjects of discussion to this meeting. This
agenda has been reviewed and approved by the attorney for the goveming body.and the presence of any subject or
description in the Executive Session portion of this agenda constitutes a written interpretation of Chapter 551 of the Texas
Local Govemment Code by the attomey for this corporation indicating that said subject or description thereof may be legally
discussed in a closed meeting.
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