HomeMy WebLinkAboutMinutes Reinvestment Zone No. 4 - 08/27/2020City of Corpus Christi
Meeting Minutes
Reinvestment Zone No. 4
1201 Leopard Street
Corpus Christi, TX 78401
cctexas. com
Thursday, August 27, 2020
11:15 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 11:21 a.m.
B City Secretary Rebecca Huerta to call roll of the Corporation Directors.
TIRZ No. 4 Board Members:
City Secretary Rebecca L. Huerta called the roll and verified that a quorum of
the Board was present to conduct the meeting.
NOTE: Steve Banta, Carol Scott, Tom Schmid, Roland Barrera, Ben Molina,
Greg Smith and Paulette Guajardo participated by video conference. Board
Member Michael Hunter participated telephonically.
Present 15 - Chair Everett Roy, Board Member Steve Banta, Board Member Roland
Barrera, Vice Chair Barbara Canales, Board Member Rudy Garza, Board
Member Paulette Guajardo, Board Member Gil Hernandez, Board Member
Michael Hunter, Board Member Joe McComb, Board Member Carrie Meyer,
Board Member Ben Molina, Board Member Tom Schmid, Board Member
Carol Scott, Board Member Greg Smith, and Board Member 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. 4, July 21, 2020.
Chairman Roy referred to Item 1.
Board Member Garza made a motion to approve the minutes, seconded by
Board Member Schmid and passed unanimously.
E. FINANCIAL REPORT: None
City of Corpus Christi
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Meeting Minutes August 27, 2020
F. EXECUTIVE SESSION ITEMS:
2.
G. AGENDA ITEMS:
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 agreements(s)
involving The Breakers at North Beach, L.P. and/or other persons or entities
desiring to engage in commercial development at or in the vicinity of 3612
Surfside Blvd. This item is for discussion purposes only. There will be no action
taken and public comment will not be solicited.
This E -session Item was withdrawn.
Motion to approve Rules of Procedure for the TIRZ #4, which set quarterly
meetings and provide an alternative method in which items are placed on a
meeting agenda.
Chairman Roy referred to Item 3.
Senior Management Analyst Randy Almaguer presented the following
information: the purpose of this item is to set a quarterly schedule for the TIRZ
#4 meetings (January, April, July and October) and hold special meetings as
needed; and to approve an alternative method in which items are placed on
the agenda.
Board Members, City Manager Peter Zanoni, City Secretary Rebecca Huerta,
Senior Analyst Almaguer and Assistant City Attorney Aimee Alcorn -Reed
discussed the following topics: staffs recommendation is items may be placed
on the agenda by the 1) Chair, Vice -Chair or other presiding officer in the
Chair's absence, 2) the City Manager, or 3) at least four Board Members who
sign a memorandum making the request; other TIRZ boards do not have a
policy regarding how items are placed on the agenda; it is up to each TIRZ
Board to decide on their process; a board member's request that the policy be
consistent across all TIRZ Boards; staff is presenting a policy at the request of a
board member made during the last meeting; clarification that the Board
Member requesting that an item be placed on an agenda can contact the other
three Board Members directly about the request since it's less than a quorum; a
request from a Board Member to have the City Secretary's Office send a memo
regarding the process for placing an item on the agenda; a Board Member's
request to amend Section c. of the Rules of Procedure from "inquire" to
"confirm"; a request that Section a.4. of the Rules of Procedure be amended to
say a special or workshop session can be called by four members of the board
rather than a majority of the board; and a special meeting will be held in
September; the quarterly meetings will begin in October 2020;
Board Member Hernandez made a motion to amend the Rules of Procedure,
Section a(4) to allow a special or workshop session to be called by four
members of the board rather than a majority of the board; and Section c. to
replace the word "inquire" with "confirm," seconded by Board Member
Vaughn. The motion to amend was approved unanimously. Mr. Hernandez
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made a motion to approve the motion as amended, seconded by Ms. Vaughn,
with the following vote:
Aye: 15 - Chair Roy, Board Member Banta, Board Member Barrera, Vice Chair
Canales, Board Member Garza, Board Member Guajardo, Board Member
Hernandez, Board Member Hunter, Board Member McComb, Board
Member Meyer, Board Member Molina, Board Member Schmid, Board
Member Scott, Board Member Smith, and Board Member Vaughn
Abstained: 0
H. PRESENTATION ITEMS:
4.
Staff update on the Breakers at North Beach,L.P. "Frazier Hotel" project
and associated TIRZ funded incentive agreement, located at 3612
Surfside Boulevard. The incentive award totaled an amount not to exceed
$7,826,200 and required completion by July 31, 2022.
Chairman Roy referred to Item 4.
Director of Finance and Business Analysis Heather Hurlbert presented a
timeline and next steps regarding the Frazier Hotel project as follows: the
initial agreement between the TIRZ and the developer was adopted in
December 2019; June 2, 2020 - deadline for first milestone in the agreement
was not met by developer, resulting in the developer being in default of the
agreement; July 15, 2020 - city sent developer a default notice; July 20, 2020 -
city received request from Jeff Blackard to extend the deadline for 12 months;
August 14, 2020 - city received a new request from an attorney who claimed to
be sending the letter on behalf of the developer; August 21, 2020 - city
responded via e-mail to Aug. 14th letter from attorney and sent a letter
granting extension to cure period until Sept. 30, 2020. Ms. Hurlbert said city
staff was working to reconcile the two different requests for an extension. She
said the city is working with the developer to negotiate a cure provision to be
presented to the Board during the September or October 2020 meeting.
Board Members, Director of Finance Hurlbert and City Manager Peter Zanoni
discussed the following topics: there are permits for site development, but no
other permits issued beyond that; a Board Member's concern regarding waiting
to extend the deadline until September or October; a Board Member's concern
about why the developer did not reach out to the City regarding the deadline,
and perhaps it was an oversight; a Board Member's concern why the City did
not reach out to the developer and why the media was notified; the City put a
four year deadline on this project; when the agreement was approved by the
TIRZ Board, it was known that there was not going to be an engineer at the
time the project should have started; the engineering report will clarify "what
is the project?" and "will the canal works; many entities are granting
extensions due to the pandemic; the City staff recommends an extension; as
soon as the City staff can meet with the developer's attorney, then a new
deadline can be determined; the developer asked for a 12 -month extension in
the first extension request and the developer's attorney asked for a 12 month
extension after COVID-19 in the second extension request; the developer
clarified today that the city should work with his attorney regarding extension
request; City needs clarification from the developer's attorney regarding his
request; the purpose of this TIRZ is to encourage economic development on
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North Beach; the contract includes language as to who the owner of the work
is (the City), so the engineering firm knows who to work for and who to report
to; and the developer will not be put in default.
Board Member Hernandez made a motion to negotiate an extension of this
agreement, seconded by Board Member Vaughn. This motion was passed and
approved with the following vote:
Aye: 15 -
Abstained: 0
Chair Roy, Board Member Banta, Board Member Barrera, Vice Chair
Canales, Board Member Garza, Board Member Guajardo, Board Member
Hernandez, Board Member Hunter, Board Member McComb, Board
Member Meyer, Board Member Molina, Board Member Schmid, Board
Member Scott, Board Member Smith, and Board Member Vaughn
Presentation on the Texas General Land Office (GLO) Community
Development Block Grant - Mitigation (CDBG-MIT) Program
Chairman Roy referred to Item 5.
Nueces County Grant Administrator Maria Bedia and Nueces County Judge
Barbara Canales presented the following information: background; mitigation
competitions; important notes; 2015 floods competition; 2015 flood competition
projects; 2016 floods competition; Hurricane Harvey competition; eligible
project activities; Hurricane Harvey competition-Nueces County as lone
applicant; Hurricane Harvey competition -joint projects (up to 3 allowed); and
Nueces County will put together a total of nine projects.
Board Members, City Manager Peter Zanoni and Grant Administrator Bedia
discussed the following topics: grant applications are due on October 28, 2020;
the deadline for LAN is December; the City is committed to working with Judge
Canales on this grant; the infrastructure is part of the process; a Board
Member's concern regarding coastal flooding issues; a Board Member's
request for the City to authorize LAN to speak to Judge Canales and make this
project a priority for staff; and the National Park Service gave the City a grant
to develop a plan for the north end of North Beach for an eco -friendly park.
I. IDENTIFY FUTURE AGENDA ITEMS:
J. ADJOURNMENT
Chairman Roy referred to Identify Future Agenda Items.
The following items were discussed: Board Member Hernandez requested
information regarding Flat Iron Dragado; Board Member Meyer wants to
ensure that a September meeting will be held; Board Member Canales
requested that Board Member Vaughn determine the default date is
September 13, 2020; in response to Judge Canales', City Manager Peter Zanoni
stated that the new default deadline for the Breakers project is September 30,
2020; and Board Member Meyer requested to put all Board Member in the
Council Chambers for the meetings.
This meeting was adjourned at 12:49 p.m.
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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.
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