HomeMy WebLinkAboutMinutes City Council - 06/26/2007I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Regular
Meeting of the Corpus Christi City Council of June 26, 2007, which were approved by the City
Council on July 10, 2007.
WITNESSETH MY HAND AND SEAL, on this the 10th day of July, 2007.
Armando Chapa
City Secretary
SEAL
MINUTES
CITY OF CORPUS CHRISTI, TEXAS
Regular Council M ting
Jure 26, 2007 - 10:00 a.m.
PRESENT
Mayor Henry Garrett
Mayor Pro Tem Nelda Martinez
Council M mb rs:
Melody Cooper*
Larry Elizondo, Sr.
Mike Hummell
Bill Kelly
Priscilla Leal
Michael McCutchon
John illlar**
*Arrived at 12:06 p.m.
**Arrived at 11:23 a.m.
City Staff:
City Manager George K. Noe
City Attorney Mary Kay Fischer
City Secretary Armando Chapa
Mayor Garrett called the meeting to order in the Council Chambers of City Hall.
The invocation was delivered by Dr. Sam Gutierrez of Cornerstone Church and the Pledge of
Allegiance to the United States flag was led by Council Member McCutchon.
Mayor Garrett called for approval of the minutes of the Retreat meeting ofJun , 2007 and
Regular Council meeting of June 19, 2007. A motion was made and passed to approve the minutes
as presented.
* * * * * * * * ***
Mayor Garrett referred to Item 2 and the following board appointment was made:
Civil Service Board/Commission
Eileen Butler (Reappointed)
* * * * * * * * * *
Mayor Garrett called for consideration of the consent agenda (items 3 - 10). Mr. Errol
Summerlin requested that Item 4 be pulled for individual consideration. Council member Leal
requested that Item 6 be pulled for individual consideration, City Secretary Chapa polled the Cuncil
for their votes as follows:
3. I I Ti N N . 2007-160
Motion approving a contract with Wells Fargo Merchant Services, LLC, of Melville, NewYoric
for establishment of a merchant services account in accordance with Request for Proposal
No. B1-0088-07 for an estimated annual expenditure of $107561.65 of which $8,963.47 is
budgeted in F 2 -2007. The account will establish credit/debit card service for
approximately eleven City revenue collection locations throughout the City. Funding is
budgeted in the various using departmental operations budgets.
Minutes — Regular ular Coun it Meeting
June 26, 2007 — Page 2
The foregoing motion was passed and approved with the following vote: Garrett, Elizondo,
Hummel', Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez were
absent.
5.a. RESOLUTION NO. 027316
Resolution authorizing the City Manager or his designee to execute an Interlocal Agreement
between the City of Corpus Christi and Nueces County to establish terms for the sharing of
the 2007 Edward Byrne Justice Assistance Grant (JAG) Program Award.
The foregoing resolution was passed and approved with the following vote: Garrett,
Elizondo, Hummel', Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez
were absent.
5.b. RESOLUTION NO. 027317
Resolution authorizing the City Manager or his designee to submit a grant application in the
amount of $236,403 to the United States Department of Justice, Bureau of Justice
Assistance, for funding eligible under the FY 2007 Edward Byrne Memorial Justice
Assistance Grant, 50 percent of the funds to be distributed to Nueces County under the
established Interlocal Agreement. Grant funds will be used for the enhancement of law
enforcement efforts by the Police Department and Nueces County.
The foregoing resolution was passed and approved with the following vote: Garrett,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez
were absent.
7. RESOLUTION NO. 027319
Resolution authorizing the City Manager or his designee to execute a letter of commitment to
provide funding through the Corpus Christi Business and Job Development Corporation in
the amount of $135,000 related to the WorkSource of the Coastal Bend grant application for
the YouthBuild program to provide affordable housing.
The foregoing resolution was passed and approved with the following vote: Garrett,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez
were absent.
8. MOTION NO. 2007-162
Motion authorizing the City Manager or his designee to execute a construction contractwith
Advantage Electrical, of Corpus Christi, Texas in the amount of $51 ,900 for the Animal
CareNector for Control Alternate Power Project.
The foregoing motion was passed and approved with the following vote: Garrett, Elizondo,
Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye", Cooper and Marez were
absent.
9. MOTION NO. 2007-163
Motion authorizing the City Manager or his designee to execute a construction contract with
The Anchor Group, Inc. of New Braunfels, Texas in the amount of $68,242 for the Sports
Minutes — Regular Council Meeting
June 26, 2007 — Page 3
Field Fencing Improvements for the Total Base Bid and Additive Alternate No. 1. (BOND
ISSUE 2004)
The foregoing motion was passed and approved with the following vote: Garrett, Elizondo,
Hummel!, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez were
absent.
10. MOTION N 1 .2007-1 4
Motion authorizing the City Manager or his designee to execute a Real Estate Sales
Contract with Robert C. Sanchez and wife, Irma V. Sanchez in the amount of $88,000 plus
$1,500 in closing costs and an additional amount not to exceed $22,500 for relocation
assistance to cover moving costs and incidental expenses in connection with a replacement
dwelling, all for the purchase of fee simple property rights to Parcel 1, described as Lot 15,
Block 14, Gardendale 3, with the street address of 4910 Williams Dr., necessary for traffic
congestion management (Williams Drive Alternate Access). (BOND ISSUE 2004)
The foregoing motion was passed and approved with the following vote: Garrett, Elizondo,
Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez were
absent.
Mayor Garrett opened discussion on Item 4 regarding security access gates for the
Wastewater Treatment Plants. Errol Summerlin, Texas Grande Legal Aid and representative of the
Hillcrest Neighborhood Association, said that if staff had followed the direction of Mayor Mary
Rhodes in 1997 to close the Broadway Wastewater Treatment Plant, the purchase of security gates
would be unnecessary for that facility. Council Members asked questions regarding the number of
gates at the Broadway Treatment Plant and if the purchase of security gates was mandatory.
Director of Wastewater Foster Crowell said that the Broadway Plant has two gates and that the
security requirement is mandated by the federal government. City Secretary Chapa polled the
Council for their votes as follows:
4. MOTION NO. 2007-161
Motion approving the award of security access gates for the Wastewater Treatment Plants
with Total Protections Systems, Inc., of Corpus Christi, Texas for a total amount of
$765,351.55. Funds are available in the 2007 Wastewater Capital Improvement Program
Fund.
The foregoing motion was passed and approved with the following vote: Garrett, Elizondo,
Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Are"; Cooper and Marez were
absent.
Mayor Garrett opened discussion on item 6 regarding a grant application for the FY2007-
2008 Community Youth Development (CYD) Program. Council Member Leal asked questions
regarding transportation for the youth of the 78415 area and if the money was guaranteed to go to
78415 residents. Director of Park and Recreation Sally Gavlik stated that the applicants of the grant
funding must provide services in the community or provide transportation and that the grant follows
strict guidelines and an audit process. Ms. Leal asked staff to provide a presentation or report on
how many children are provided service through the 78415 program and program funding. City
Secretary Chapa polled the Council for their votes as follows:
Minutes — Regular Council Meeting
June 26, 2007 — Page
6. RESOLUTION NO. 027318
Resolution authorizing the City Manager or his designee to submit a grant application to
serve as the Fiscal Agent for the Texas Department of Family and Protective Services
{DEPS} FY 2007-2048 78415 Community Youth Development (CYD) Program, with
$500,000 DFPS funding.
The foregoing resolution was passed and approved with the following vote: Garrett,
Elizondo, Rummell, Kelly, Leal, M Cut h n, and Martinez, voting "Aye"; Cooper and Marez
were absent.
Mayor Garrett referred to Item 11, and a motion was made, seconded and passed to open
the public hearing on the following zoning case:
Case No. 0507-07, Noe Nilo Ortiz: A change of zoning from a "F -1 B11 " One -family Dwelling
District with the Island Overlay to a "B -2A/10" Barrier Island Business District with the Island
Overlay on property described as Padre Island Section E, Block 2, Lots 19, 20, and 21,
located on the corner of Leeward Drive and Aruba Drive.
City Secretary Chapa stated that the Planning Commission and staff recommended approval
of the "B-2Al1" Barrier island Business District with Island Overlay.
Noe Nilo Ortiz, representative of the property owner, thanked the Council for their support of
the recommendation. Mr. Kelly made a motion to close the public hearing, seconded by Mr.
Elizondo, and passed. Mr. Chapa polled the Council for their votes as follows:
11. ORDINANCEN . 027320
Amending the Zoning Ordinance, upon application by Noe Nilo Ortiz, by changing the zoning
map in reference to 0.77 acres out of Padre Island Section E, Block 2, Lots 19, 20, and 21,
from "R-113/10" One -family Dwelling District/Island Overlay to "B -2N10" Barrier Island
Business District/Island Overlay; amending the Comprehensive Plan to account for any
deviations from the existing Comprehensive Plan; providing a repealer clause; providing a
penalty; providing for publication.
An emergency was declared, and the foregoing ordinance was passed and approved with
the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting
"Aye"; Cooper and Marez were absent.
Mayor Garrett referred to Item 12, and a motion was made, seconded and passed to open
the public hearing on the following zoning case:
Case No. 0507-08, yalee Shih: A change of zoning from an "AB" Professional Office District
to a "13-1" Neighborhood Business District on property described as Bratton Place, Block 1,
Lots 1 through 4 and the northeast fifteen feet of Lot 5, located on the east side of Weber
Road, approximately 350 feet south of Brett Street.
City Secretary Chapa stated that the Planning Commission and staff recommended approval
of a "B -l" Neighborhood Business District.
Minutes — Regular Council Meeting
June 26, 2007 — Page
No one appeared in opposition to the zoning change. Mr. Elizondo made a motion to close
the public hearing, seconded by Mr. Kelly, and passed. Mr. Chapa polled the Council forth irvot s
as follows:
12. ORDINANCE NO. 027321
Amending the Zoning Ordinance, upon application by Yalee Shih, by changing the zoning
map in reference to 0.7 acres (30,705 -square feet) out of Bratton Place, Block 1, Lots 1
through 4 and the northeast fifteen (15) feet of Lot 5 from "A" Professional Office District to
"B-1" Neighborhood Business District; amending the Comprehensive Plan to account for any
deviations from the existing Comprehensive Plan; providing a repealer clause; providing a
penalty; providing for publication.
An emergency was declared, and the foregoing ordinance was passed and approved with
the following vote: Garrett, Elizondo, Hummel', Kelly, Leal, McCutchon, and Martinez, voting
"Aye"; Cooper and Marez were absent.
Council Member Hummel' referred to Item 11 and asked if it was a common practice to
rezone a property because the owner is having trouble selling the property. City Planner Shannon
Murphy stated that this practice was common as long as the change in zoning was consistent with
the future land use map.
City Secretary Chapa announced that Item 13 was withdrawn by the applicant.
13. VII I T H D RAW N
Amending the Zoning Ordinance, upon application by Share' Zacharias, by changing the
map in reference to 0.13 acres (6250 -square feet) out of Del Monte, Block 2, Lot 17,
pfoviding a repealer clause; providing a penalty; providing for publication.
City Secretary Chapa referred to Item 12, regarding the public hearing on the following
zoning case:
Case No. 0507-01, tre_m Homes of Texas, L L.C. A change of zoning from a "R -1B"
One -family Dwelling District to a "B-1" Neighborhood Business District on property dscribed
as 1.93 acres out of a 35.75 acre tract recorded by deed in Volume 1450, Page 535, Nueces
County, Texas Deed Records, located on the south side of Up River Road approximately
350 feet from the intersection on Mcg in ie Road.
City Secretary Chapa announced that this zoning case had been tabled from June 12, 2007
and the applicant has requested to extend the table until July 24, 2007. Council Member Kelly said
that Tuloso-Midway Independent School District will be discussing this item on July 16th and
recommended the tabling to allow arrangements by the school district and the property owner. Mr.
Kelly made a motion to table until July 24th seconded by Ms. Leal, and passed.
14. TABLED TO JULY 24, 2007
Case No. 0507-01 Extreme_ Homes of _Texas, L_L.S.: A change of zoning from a "R-1 B"
On f.ny Dwelling District to a "B-1" Neighborhood Business District on property described
e
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a
Minutes --- Regular Council Meeting
June 26, 2007 — Page
County, Texas Deed Records, located on the south side of Up River Road approximately
350 feet from the intersection of McKinzie Road. (Tabled on 6/12/07) (REQUEST BY
APPLICANT TO TABLE UNTIL 7124107)
Mayor Garrett opened discussion on Item 22 regarding a grant application for the
enhancement of voice interoperability on the 800 MHz radio System. Assistant Chief Ken Bung
referred to a powerpoint presentation including a summary of the grant; a map of the current 800
MHz system; the agencies currently on the radio system; the proposal to include Aransas County,
the City of Rockport and the City of Port Aransas Police, Fire, and EMS and the purchase of
equipment to enhance the 800 MHz system; a proposed map of the full implementation linking the
Coastal Counties* and the request by the City of Corpus Christi. In response to Mayor Garrett,
Assistant Chief Bung provided a list of the repeater sites. There were no comments from the
audience. City Secretary Ch pa polled the Council for their votes as follows:
22. RESOLUTION NO. 027323
Resolution authorizing the City Manager or his designee to submit a grant application in the
amount of $2,017,550 to the United States Department of Justice, Office of Community
Oriented Policing Services for funding eligible under the COPS 2007 Technology Program
Grant. Funds will be used for the enhancement of voice interoperability on the 800 MHz
radio system, with a City match of $672,517, fora total grant application of $2,690,067; and
authorizing the City Manager or his designee to apply for, accept, reject, alter or terminate
the grant.
The foregoing resolution was passed and approved with the following vote: Garrett,
Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez
were absent.
Mayor Garrett announced the executive sessions, which were listed on the agenda as
follows:
23. Executive session under Texas Government Code Section 551.071 regarding Arnulfo
Garcia v. City of Corpus Christi; Civil Action No. 06-198; in the United States District Court,
with possible discussion and action related thereto in open session.
The Council went into executive session. The Council returned from executive session.
Mayor Garrett referred to Item 15, a presentation on the final report on the 80th Texas
Legislative Session. Special Assistant to the City Manager Tom Utter provided a summary of the
legislative program including: franchise fees; state hotel tax for beach maintenance; mandated fees;
municipal court costs; protection of water rights; transportation; manufactured housing; annexation
authority; condemnation authority; redemption periods; CHIPS funding; higher education; crime or
emergency service districts; court of record; photographic traffic signal enforcement; dangerous dog
bill; air quality; environmental issues; economic development; property tax exemption; delinquent
sales tax; and the open meetings act.
Minutes — Regular Council Meeting
June 26, 2007 — Page 7
Council Members afed questions regarding CHIPS enrollment and the General Land Office
using the Bureau of Economic Geology data for future beach maintenance.
Tim Brown spoke regarding water issues and Senate Bill 3. Snapper Carr spoke regarding
the water debates. Hugo Berlanga spoke regarding the red light system. Todd Hunter said it was
an honor to represent the city on legislative issues and pledged to continue.
The Mayor and Council Members thanked Tom Utter for his service to the City and
assistance with the legislative session. City Manager Noe thanked the delegation including Snapper
Carr, Tim Brown, Hugo Berlanga and Todd Hurter. Mr. Noe thanked Mr. Utter for his years of
dedication, knowledge and expertise in the legislative program.
Mayor Garrett called for petitions from the audience. Carolyn Moon, 4902 Calvin, spoke
regarding the cleanliness of the bay and the use of street sweepers. Jack Gordy, 4118 Bray, spoke
regarding an article stating that the City is at risk of losing road construction funding because of the
use of illegal signs. City Manager Noe said there was no relation between the article and the issue
of the signs. J.E. O'Brien, 4130 Pompano, provided a handout from the City's financial statement
and spoke regarding the City's total debt and utility increases. John Torrey, 7253 Yaupon Drive,
spoke regarding staff's conclusions on Grade 1 and 11 specifications for crushed concrete.
Mayor Garrett announced that Item 16, an overview of the Proposed FY2007-2008 Budgets
for the Enterprise Funds was postponed.
Mayor Garrett referred to Item 17, a presentation by Trademark Property Company regarding
the Proposed Re -development of Padre Staples Mali and the Staples Center.
Debbie Lindsey -Opel and Jimmy Rodriguez introduced the Trademark representatives and
provided a background of the company. Terry R. Monte i, President/CEO President/CEOof Trademark Property
Company, referred to a powerpoint presentation including: an overview and purpose of the
Trademark Company; examples of Trademark projects; the vision for the revitalization of Padre
Staples Mali; community benefits; three scenarios for the community; and the results of a survey.
Dr. Ray Perryman, The Perryman an Group, spoke regarding retail development; incentives for
retail; cannibalizing the existing retail market; the results of the ERA study; the economic impact of
building Crosstown Commons as proposed; the economic impact of upgrading and expanding
Padre Staples Mall and the addition of 1.1 million square foot range Crosstown Commons
development: and the effects of a Tax Increment Finance (TIF) projections.
Stan Ei helbaum, President of Marketing Development, provided a summary of main
findings for potential and risk including the following: the challenges of specialty shops; the increase
in retail square feet per capita} research on the attempts of two specialty department stores failing or
collapsing; economic distress; overexpansion per the market; second stores policies; site of Padre
Staples comparable to other sites; problems with the ERA study; market leakage; and the potential
and vulnerability of Padre Staples Mall. Mr. Ei h lbaum added that he advised Trademark to
consider a non -specialty appropriately sized quality retail project if there is a developer needed for
Crosstown Commons.
Minutes — Regular Council Meeting
June 26, Zoo — Page
Council members asked questions regarding whether Crosstown Commons would achieve
the status of a regional shopping center at the 1.1 million square foot range; sales leakage; the
reason why Padre Staples Mali could not survive if the relocations are capped at 30%; why existing
companies could not retain quality tenants; the use of TIF funds; tenants that anchor large shopping
centers; the Tax incentive Policy; cannibalization of sales tax from neighboring municipalities and
existing markets; percentage rate of return, personal income and retail sales per capita; TIF
proposals that include on-site infrastructure; the recommended percentage of retail space
relocation; best geographic retail location for Corpus Christi; the retail square feet per capita; anchor
stores located at Padre Staples; specialty retailing; the population required for Corpus Christi to
accommodate two major shopping centers and anchors of other Trademark projects.
illlayor Garrett referred to item 18, a presentation by Economics Research Associates (ERA)
regarding the Economic impact of Retail/Mixed Use Development Projects proposed by
CBL Hawk ins Group. Dick Starr, Senior Vice President of ERA, provided a brief summary of the
Economic Impact Assessment of the proposed Crosstown Commons mall based on thmarket data
currently available including the impacts projected; the Crosstown Commons visitor activities and
attractions; goals for increasing employment opportunities, tourism, enhanced quality of life, traffic
issues, and other related economic priorities; and the economic impacts including the building
program, operating program for sales tax and property tax, and other tax revenues.
Council members asked questions regarding the factors that determine the projections of
retail sales dollars; the factors of the project that will draw new retailers and customers; capturing of
sales leakage; if Crosstown Commons has to have one or more anchors from Padre Staples Mall to
be a successful enterprise; the attractions data; the determination of a department store; if Padre
Staples Mali could survive as a viable shopping center if Crosstown Commons is built; traffic issues
impact on South Padre Island Drive; the retail sales tax impact; the estimated Crosstown Commons
annual property taxes; the net amount of job growth; population expansion of the metropolitan
statistical area; net economic gain for the future; the dimensions of the completed project; the site
build -out expectations; the impact of the analysis should the market dictate the development;
multiplier effects of a retail center; the perimeters of a TIF zone; the revenue split; and the percent of
sales from existing market.
* * * * * * * * * * * *
Mayor Garrett opened discussion on Item 19 regarding the City of Corpus Christi Tax
incentive Policy. Irma Caballero, Director of Economic Development, referred to a powerpoint
presentation on the redrafted policy including policy sections; applicability; guiding principals
including the addition of Section H. regarding employment of an undocumented worker); other
taxing entities; the initial review; requirements of new large retail projects, large projects and
redevelopment; city review; financial requirements other policy considerations and fees. Ms.
Caballero added that the Small Business Policy would be provided to council at a later date.
Council members asked questions regarding the cap on the incentive payment at 15%;
proposals not exceeding 25 years; the City's protection if bond payments are not made; policy
consideration for contractors that pay higher than the local average; the establishment of a
relocation percentage; monitoring the compliance requirements of the goals and utilization of local
contractors and suppliers; the entity that will determine relocation percentage; the defining of off-site
infrastructure; the creation of the local government corporation, obligation of bonds and bond
capacity; a definition of relocation that excludes small business; the checks and balances of the TIF;
incentive requirements; net economic impact; the developer's pro forma; performance requirements;
audit and monitoring procedures; the Public Improvement District; the timeframe for relocation; and
second stores.
Minutes — Regular Council Meeting
June 26, 2007 — Page 9
Mayor Garrett called for comments from the audience. Charlie Torres, Coastal Bend Union
Council, said the union passed a resolution in support of the Crosstown Commons development and
the use of local contractors and craftsmen. Tom Iegly, Bay Area Bicycles, spoke in opposition of a
TIF incentive. Mike Moore spoke in support of Padre Staples Mall and slowing down the process.
Margo Moore, 7401 Holly, spoke regarding the relocation of existing retail. Rick Leiter, Marketing
Director of Padre Staples hall, provided definitions from the International Council of Shopping
Center's website and asked to slow down the process. Hal George, 5350 S. Staples, asked the
Council to slow the process down to receive sufficient public input. Hugo Berlanga, asked the
Council to slow down the process. Beth Mills, Bourbon Street Candy Company, spoke in support of
slowing down the process and delaying the vote for at least 30 days.
Caitlin Bevly spoke regarding the TIF policy and asked the Council to slur down the
process. Roy Moore spoke regarding the relocation of retail stores and the use of tax incentives.
Amanda Sanchez, 5392 County Road 73A, spoke in support of Padre Staples Mall and provided the
Council with comment cards from shoppers. Joe Ortiz, 3718 Mendenhall, spoke in support of the
TIF policy, the Crosstown Commons project, and minority participation for the project. Butch
Escobedo, 3 Great Lakes, expressed his concerns regarding new and existing business, on-site
development and a TIF for small businesses. Dr. Nick Adame asked the Council to slow down the
process and look at the impact to small businesses. Carol Scott, 338 Bermuda, spoke in support of
Padre Staples Mali and expressed concern to the policy including the financial comparison,
relocation, and the local government corporation. Susie Luna Saldana, 4710 Hake', spoke in
support of City growth.
Victoria Brown, Weingarten Realty Investors, spoke regarding cannibalization of existing
retail. Abel Alonzo, 1701 Thames, spoke regarding economic development and improving the
quality of life. Arnold Gonzales asked the Council to slow down the process and delay the issue.
Devita Bates, 3121 Bourgogre, spoke regarding the confusion of the TIF policy. Pauletta Scheinder,
10614 Shiloh Lane, spoke regarding anchors preventing the renovation of the mall and asked the
council to slow down the decision of the policy. Leon Loeb, 921 N. chaparral, spoke regarding the
subsidizing of new retail development anmajor projects and the fairness to smaii business owners.
David Engel, 230 Amistad, spoke in support of City growth, the development of Crosstown
Commons and redevelopment of Padre staples Mall. Charles Kaffie, 2717 Ocean Drive, asked the
Council not to delay the vote and miss the opportunity for City growth.
Wes Bevly, 3368 FM2292, spoke in support of Padre staples Mali. Lynn Allison asked the
Council to slow down the process and review the information provided by the experts. Debbie
Lindsey -Opel, 15862 Cuttysark, spoke in support of City growth but asked the Council to slow down
the process. John Kelley, 3621 Austin, said that retail is not economic development unless it is
small business and stated that the plan for economic development is much bigger than the TIF
proposal. Jimmy Rodriguez, 4002 Up River Road, spoke regarding crafting a vision for small
businesses and supporting local retail. Sean Bevly, asked the Council to slow down and review the
policy so that both the Crosstown Commons and Padre staples Mali revitalization can occur. David
Loeb, spoke regarding subsidizing the TIF, the disadvantage to small businesses, future
investments and slowing down the process.
Danita West, 13941 Man °'War, spoke in opposition of the TIF and slowing down the
process. Carolyn Moon spoke regarding the effects of the project and slowing down the process.
George Clower, 415 Starr, spoke regarding relocation percentage, protection of existing retail and
the polling information provided. Dr. Nancy Vera, President of LULAC #4444, spoke in support of a
TIF. John Bell, 13750 Primavera, spoke in support of the project and the need for a policy. Eloy
Minutes — Regular Council Meeting
June 26, 2007 — Page 10
Salazar, 8206 Campodolcino, ino, spoke in support for the policy, growth and a policy for small business
but asked the Council to slow down the process. Reagen Brown spoke regarding net economic
growth, small business, and creating a fair TIF policy. Roland Garza encouraged the Council to
work through the process and make it happen.
A motion was made by Mr. Kelly to amend Section XII. Other Policy Considerations, to
include priority consideration for construction companies that pay employees at or above the median
wage in Corpus Christi. The motion was seconded by Ms. Cooper and passed unanimously.
A motion was made by Council Member Kelly to amend Section VI1. Requirements for New
Large Retail Projects, (0), to include that the developer agrees that no more than 15% of the total
gross floor area of the retail space in the project may come from any one retail center. The motion
was seconded by Ms. Cooper and passed unanimously.
A motion was made by Dr. McCutchon to amend Section VIII. Requirements for
Redevelopment Projects, (F), to include that the developer agrees that no more than 15% of the
total gross floor area of the retail space in the project may come from any one retail center. The
motion was seconded by Mr. Kelly and passed unanimously.
A motion was made by Ms. Leal to amend Section XIV. Fee, by deleting the option that the
City at its discretion may consider waiving a portion of the fee upon request, seconded by Mr. Marez.
City Secretary Chapa polled the Council for their votes as follows:
The foregoing motion was passed and approved with the following vote: Garrett, Cooper,
Elizondo, Kelly, Leal, Marez, and Martinez, voting "Aye"; Hummel) and McCutchon voting
"No".
A motion was made by Mr. Hummel' to amend Section VII. Requirements for New Large
Retail Projects, (0), and Section VIII. Requirements entsforRedevelopment Projects, (F), to reduce the
relocation percentage from 30 % to 20%, seconded by Mr. Elizondo. After a brief discussion, Mr.
Hummel! withd rew his motion.
A motion was made by Dr. McCutchon to amend Section VII. Requirements for New Large
Retail Projects, (0), and Section VIII. Requirements for Redevelopment Projects, (F), to reduce the
relocation percentage to 10% with no penalty and reduce the value of the TIF by 10% with each
10% increase in relocation percentage. The motion failed for a lack of second.
A motion was made by Mr. Hummell to amend Section VII. Requirements for New Large
Retail Projects, (0), and Section VIII. Requirements edevelopment Projets, (F), to reduce the
relocation percentage from 30 % to not to exceed 20%, seconded by Mr. Elizondo. A brief
discussion ensued. City Secretary Chapa polled the Council for their votes as follows:
The foregoing motion failed by the following vote: Elizondo, Hummel), and McCutchon,
voting "Aye"; Garrett, Cooper, Leal, Kelly, Marez, and Martinez, voting "No"
A motion was made by Dr. McCutchon to amend Section IV. Guiding Principles for
Consideration of Applications for Tax Incentives, (1), by adding the word "incremental" before sales
tax collections and before increases in property tax revenues. Motion was seconded by Mr.
Hummel) and passed unanimously.
A motion was made by Dr. McCutchon to change Section VII. Requirements for New Large
Retail Projects, (H), and Section VIII. Requirements nts for Redevelopment Projects, (E), to reflect the
wording in the draft preliminary infrastructure financing agreement as detailed in Section I., E. "in the
Minutes — Regular Council Meetirg
June 26, 2007 — Page 11
event that the new store in the Project is larger than the closed store, the percentage of Gross Floor
Area (as such term is defined in industry standards) which represents the increase shall not be
considered part of the Relocation but shall be treated as new store sales." The motion was
seconded by Mr. Hummel) and passed unanimously.
A motion was made by Dr. McCutchon t amend Section XI. Financial Requirements (F), by
adding the word "incremental" remental" before sales tax collections and before increases in property tax
revenues. Motion was seconded by Ms. Martinez and passed unanimously.
City Secretary Chapa polled the Council for their votes as follows:
19. RESOLUTION NO. 027322
Resolution approving the City of Corpus Christi Tax Incentive Policy for large retail/mixed
use development and redevelopment.
The foregoing resolution was passed and approved as amended with the following vote:
Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Mare , and Martinez, voting
"Aye".
Mayor Garrett opened discussion on Items 20 and 21 regarding the Preliminary
Infrastructure Financing Agreement and Development Agreement with Crosstown Commons, LLC.
Assistant City Manager Oscar Martinez provided a review of the contents of the agreement including
an overview of the agreement; key terms of the agreement; key provisions; the financing structure;
the TiF Bond Schedule; projected growth of property values; taxable sales projections; and sales
taxable revenue projections.
Council members asked questions regarding the total adjustable taxable sales; inflation
adjustments; the new sales on non -relocated stores; the ERA study on the retail pull from existing
market retail; and addressing inremental increases in the policy.
John Bell, Attorney for Crosstown Commons, provided a list of proposed new terms including
changing the revenue split t 7%-33%; setting a cap of new retail space with proportionate steps
for lesser development; store closure periods; procedures for calculating square feet of relocation
stores; maximum of relocations remaining at 30%; and TiF projections with relocations for year
2015.
Council members asked questions regarding the release of properly space for store
closures; the opening period; the proportionate step formula; the issuance and sale of bonds; the
cap for relocations; the size ofthe regional centert develop synergy tdraw from a larger market;
reduction of square footage; TIF projections; second store sales; net new sales revenue; projection
of utilities revenue; historical information from State Comptrollers Office; if additional partners will be
receiving revenue; the revenue split; the definition of a local contractor; the location of Coastal
Crosstown Drive; the scale of TiF values by square footage as defined by the opening; relocation
percentage; when the Public Improvement District would take affect; and the base ad valorem taxes
excluded from the T1F.
Council Member Kelly announced a Town Hall meeting on Wednesday, June 26th at 6:00
p.m. at West Guth Park to discuss the Coliseum and the potential redevelopment on the bayfront
around the Coliseum.
Minutes — Regular Council Meeting
June 26, 2007 -- Page 12
Mayor Garrett called for comments from the audience. Hal George spoke regarding a
protection for release of property and the sharing of tax increments. Hugo Berlanga spoke
regarding a draft development agreement prepared by staff in February 2007. Debbie Lindsey -Opel
spoke regarding adopting the policy as related to the TIF and limiting public comment. Carol Scott
spoke regarding the retail space cap and the relocation allowance. Susie Luna Saldana said she
was interested in what is best for the City. Terry Montesi spoke regarding the policy amendment for
relocation from anyone center and the TIF policy applying to the Crosstown Commons project. Bill
Morris spoke regarding relocations by municipalities. Shawn Bevly spoke regarding the relocation of
stores. Craig Murphy spoke regarding the thresholds of the agreement and the proportionate steps.
Roland Gaona spoke regarding the relocation percentage.
A motion was made by Mr. Hummel' that retailers classified as a relocation be required by
contract to cooperate with their prior landlord in fulfilling and/or terminating requirements of their
lease before relocating to Crosstown Commons. Motion was seconded by Mr. Kelly and passed
unanimously.
A motion was made by Ms. Martinez to adopt the Proposed New Terms submitted by John
Bell, Attorney for Crosstown Commons and include them in the Infrastructure Agreement, Section!,
(B), City's Limited Obligation of Reimbursement; to change the relocation years from two years to
three years in Section 1, (E), Definition of Relocations, immediately following opening of the project
and does not open another location elsewhere in the City; define "Opening Date" as when the
developer submits an application to the City showing the project is complete per Section 1, (B);
change the revenue split to 67%-33%; and directing the city Attorney and Bond Counsel to clean-up
and incorporate these changes into the document. A brief discussion ensued. The motion was
seconded by Council Member Leal and passed; McCutchon voting "No".
A motion was made by Mr. Kelly to amend Section 1, (G) Limitation on Relocations, to include
that the developer agrees that no more than 15% of the total gross floor area of the retail space in
the project may come from any one retail center. After a brief discussion, Mr. Kelly withdrew his
motion.
A motion was made by Dr. McCutchon to table the Crosstown Commons items, seconded by
Mr. Elizondo. After a brief discussion, Dr. McCutchon withdrew his motion.
A motion was made by Council Member Kelly to amend Section 1, (G) Limitations on
Relocations, that in the event 1,400,000 square feet is built, there will be a 15% project cap of that
square footage from any one other retail center. Motion was seconded by Ms. Cooper and passed
unanimously.
A motion was made by Ms. Martinez to clarify by adding the 90% occupancy to the previous
amendment in Section 1, (E) Definition of Relocations. Motion was seconded by Ms. Cooper and
passed unanimously.
A motion was made by Mr. Hummel) directing staff to make the document compatible with
the changes made by other council members as well as the proposed new terms submitted by John
Bell on behalf of CBL. Motion was seconded by Ms. Martinez and passed unanimously.
A motion was made by Dr. McCutchon to cap relocations to the facility at 30% up to
1,500,000 square feet of build out and at 20% beyond 1,500,000 square feet. Motion failed for a
lack of second.
Minute — Regular Cun it Meeting
June 26, 2007 — Page 13
City Secretary Chapa polled the Council for their votes as follows:
20. 11 TI N NO. 2007-165
Motion authorizing the City Manager to execute a Preliminary Infrastructure Financing
Agreement with Crosstown Commons, LLC (Developer) to set forth terms, conditions and
obligations by which the Developer and the City intent to participate in the development of a
lifestyle and power center to e know as "Crosstown Commons" to be developed on an
approximate 227 acre tract north of Holly Road between Crosstown Expressway frontage
road and Greenwood Drive.
The foregoing motion was passed and approved as amended with the following vote:
Garrett, Cooper, Kelly, Leal, Marez, and Martinez, voting "Aye"; Elizondo, Hummell, and
McCutchon, voting "No".
21. MOTION NO. 2007-1
Motion authorizing the City Manager to execute a Development Agreement with Crosstown
Commons, LLC, (Developer), to establish development requirements for Crosstowm
Commons, a proposed mixed use development located north of Holly Road between
Crosstown Expressway frontage road and Greenwood Drive.
The foregoing motion was passed and approved with the following vote: Garrett, Cooper,
Kelly, Leal, Marez, and Martinez, voting 'Aye"; Elizondo, Hummell, and McCutchon, v ting
There being no further business to come before the Council, Mayor Garrett adjourned the
Council meeting at 11:52 p.m. on June 26, 2007.