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HomeMy WebLinkAboutMinutes Reinvestment Zone No. 3 - 07/28/2020City of Corpus Christi Meeting Minutes Reinvestment Zone No. 3 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com Tuesday, July 28, 2020 9:30 AM 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 9:37 a.m. B. City Secretary Rebecca Huerta to call roll of the Corporation Directors. City Secretary Rebecca Huerta called the roll and verified that a quorum of the Board was present to conduct the meeting. Note: Chairman Roy, Board Members Roland Barrera, Paulette Guajardo and Greg Smith participated by video conference. Board Member Michael Hunter participated telephonically. Present 9 - Chair Everett Roy, Board Member Roland Barrera, Board Member Rudy Garza, Board Member Paulette Guajardo, Board Member Greg Smith, Board Member Michael Hunter, Board Member Joe McComb, Board Member Ben Molina, and Board Member James Sedwick Absent 3 - Board Member Gil Hernandez, Board Member Susan Hutchinson, and Vice Chair Carolyn Vaughn C. PUBLIC COMMENT: Chairman Roy referred to Public Comment. There were no written public comments submitted. D. MINUTES: 1. Approval of the minutes of the Reinvestment Zone No. 3, June 23, 2020 Chairman Roy referred to Item 1. Board Member Garza made a motion to approve the minutes, seconded by Board Member Molina and passed unanimously (Board Members Carolyn Vaughn, Gil Hernandez and Susan Hutchinson -absent). E. FINANCIAL REPORT: 2. Reinvestment Zone No. 3 Financial Reports as of May 31, 2020. City of Corpus Christi Page 1 Printed on 8/3/2020 SCANNED Reinvestment Zone No. 3 Meeting Minutes July 28, 2020 Chairman Roy referred to Item 2. Director of Finance Heather Hurlbert presented the financial report for Tax Reinvestment Zone No. 3 ending May 31, 2020, including: total assets; revenues; expenditures; and fund balance. A Council Member and Director Hurlbert discussed the following topic: the $4.8 million includes the future commitments excluding the rebates. F. EXECUTIVE SESSION ITEMS: 3. G. AGENDA ITEMS: 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 SEA District Hotel Group L.P. and/or other entities involved with a development at or near the intersection of Brewster Street and Tancahua Street in the downtown area 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 governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations and/or financial or other incentives involving said business prospect Chairman Roy referred to Executive Session Item 3. The Council went into Executive Session at 9:42 a.m. The Council returned from Executive Session at 10:11 a.m. The following motion was made by Board Member Hunter to approve Item 3, seconded by Board Member Molina and passed unanimously (Board Members Carolyn Vaughn, Gil Hernandez and Susan Hutchinson -absent). Motion directing the City, as an agent of TIRZ #3, to prepare a Downtown Development Reimbursement Agreement with SEA District Hotel Group L.P., for improvements to the property located near the intersection of Brewster Street and Tancahua Street for a total incentive amount not to exceed $1,415,000, which consists of 75% of the increment on the property reimbursed over the course of ten years or until the expiration of TIRZ #3, whichever is sooner, under the Project Specific Development grant program, the incentive being contingent on the subsequent execution of an agreement and approval of the agreement by the Board. Resolution approving the Proposed FY 2021 Tax Increment Reinvestment Zone Number Three Operating Budget in the amount of $1,983,228 in revenues and $1,985,924 in expenditures to become effective upon City Council approval during the normal budget process. City of Corpus Christi Page 2 Printed on 8/3/2020 Reinvestment Zone No. 3 Meeting Minutes July 28, 2020 Chairman Roy referred to Item 4. Director of Management and Budget Eddie Houlihan and Executive Director of Downtown Management District Alyssa Barrera Mason presented information on the proposed budget for TIRZ #3: budgeted revenues; program budget; proposed expenses; budget overview; total revenues; total expenditures; gross ending balance; and net ending balance. Board Members, Director Houlihan and Director Mason discussed the following topics: the 600 Building project is still going forward; the manufacturer would install and maintain the smart parking meters and there will be a profit sharing included; how would the smart parking meters effect the parking study and plan; and the parking decision is made by the parking enforcement division. Board Member Smith made a motion to amend the revenue amount to $1,930,767, seconded by Board Member Molina. Board Member Smith made a motion to approve Item 4 as amended, second by Board Member Guajardo and passed unanimously (Gil Hernandez, Carolyn Vaughn and Susan Hutchinson -absent). H. PRESENTATION ITEMS: 5. TIRZ #3 2020 Incentives Update & Review Chairman Roy referred to Item 5. Executive Director of Downtown Management District Alyssa Barrera Mason presented information on the TIRZ #3 downtown incentives: adopted incentive programs; incentive investment and value tracking; return on investment; new commercial tenant finish -out; steps to new tenant; Chaparral Street property improvement; Chaparral Street vacancy; downtown living initiative; development agreement; project specific development agreement calculations; catalytic projects; and recommendation/next steps. Board Members and Director Mason discussed the following topics: Board Members thanked staff for their hard work on these projects; a Board Member's concern of changing the guidelines in the amount of money available due to COVID-19; we may not be able to get the investments needed for the downtown projects; and a Board Member's suggestion to keep existing strategies until conditions change with COVID-19. 6. Discussion on possible meeting schedule changes. Chairman Roy referred to Item 6. Senior Management Analyst Randy Almaguer presented the following information: discussion to move the TIRZ #3 meetings from monthly to quarterly with the option of having special meetings if needed. I. IDENTIFY FUTURE AGENDA ITEMS: Chairman Roy referred to Identify Future Agenda Items. No items were discussed or identified. City of Corpus Christi Page 3 Printed on 8/3/2020 Reinvestment Zone No. 3 Meeting Minutes July 28, 2020 J. ADJOURNMENT This meeting was adjourned at 10:54 a.m. * 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 governing 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 Government Code by the attorney for this corporation indicating that said subject or description thereof may be legally discussed in a closed meeting. City of Corpus Christi Page 4 Printed on 8/3/2020