WEBVTT 00:00:00.000 --> 00:00:05.200 Good morning, ladies and gentlemen. 00:00:05.200 --> 00:00:07.600 My name is John Baines, CPA. 00:00:07.600 --> 00:00:14.240 I have the privilege of being the chair of the economic development partnership board. 00:00:14.240 --> 00:00:21.080 And I have a very prestigious group of board members and city employees with me this morning. 00:00:21.080 --> 00:00:26.320 And we're about to start our meeting. 00:00:26.320 --> 00:00:35.520 And the first item on the agenda is TURS 21-001. 00:00:35.520 --> 00:00:40.840 Consider approval of the meeting minutes of February 12, 2020. 00:00:40.840 --> 00:00:44.040 So that's a year ago was the last time we had the meeting. 00:00:44.040 --> 00:00:48.280 And we'll give everyone just a second to take a look at the minutes. 00:00:48.280 --> 00:00:52.440 And once you're ready, you can just wave your hand and then that way we can go ahead and 00:00:52.440 --> 00:01:04.480 proceed. 00:01:04.480 --> 00:01:09.160 If everyone's had a chance to read the minutes, we'll entertain a motion to accept the minutes 00:01:09.160 --> 00:01:11.160 as presented, please. 00:01:11.160 --> 00:01:19.600 John Baines, this is Jill Jester and I move approval of the minutes as presented. 00:01:19.600 --> 00:01:21.800 We have a motion on the floor from Jill Jester. 00:01:21.800 --> 00:01:24.880 We need a second. 00:01:24.880 --> 00:01:27.260 Mr. Chairman, Tony Clark, I will second that. 00:01:27.260 --> 00:01:29.040 Mr. Clark seconds. 00:01:29.040 --> 00:01:37.360 Do we have any discussion of the minutes as presented? 00:01:37.360 --> 00:01:46.240 Hearing none, we will need to take a verbal approval of the minutes as presented. 00:01:46.240 --> 00:01:53.720 And we'll start with, let's see, Jesse Davis? 00:01:53.720 --> 00:01:57.280 I vote aye. 00:01:57.280 --> 00:01:59.280 Tony Clark? 00:01:59.280 --> 00:02:00.840 Aye. 00:02:00.840 --> 00:02:03.840 Jason Tomlinson? 00:02:03.840 --> 00:02:05.520 Aye. 00:02:05.520 --> 00:02:07.200 Jill Jester? 00:02:07.200 --> 00:02:08.360 Aye. 00:02:08.360 --> 00:02:10.000 Lee Ramsey? 00:02:10.000 --> 00:02:11.000 Aye. 00:02:11.000 --> 00:02:16.080 Jimmy Mejia? 00:02:16.080 --> 00:02:24.680 I'm going to mute Jimmy. 00:02:24.680 --> 00:02:25.680 Is it up now? 00:02:25.680 --> 00:02:26.680 Yes. 00:02:26.680 --> 00:02:27.680 Yes. 00:02:27.680 --> 00:02:28.680 Can you hear me? 00:02:28.680 --> 00:02:29.680 Aye. 00:02:29.680 --> 00:02:30.680 Okay. 00:02:30.680 --> 00:02:31.680 Mark McClellan? 00:02:31.680 --> 00:02:32.680 Aye. 00:02:32.680 --> 00:02:35.420 And let's see, is Steve on? 00:02:35.420 --> 00:02:42.880 I know I've tended to ignore Steve a few times, I don't see Steve, and then John Baines approved 00:02:42.880 --> 00:02:43.880 the minutes. 00:02:43.880 --> 00:02:44.880 Did I get everyone? 00:02:44.880 --> 00:02:46.280 Selwyn? 00:02:46.280 --> 00:02:50.840 Selwyn, forgive me, Selwyn. 00:02:50.840 --> 00:02:52.160 Okay. 00:02:52.160 --> 00:02:57.280 So we have unanimous approval of the minutes. 00:02:57.280 --> 00:03:05.960 And with that, we'll go on to the next item on the agenda, TURS 21-002. 00:03:05.960 --> 00:03:10.960 We want to receive a report, hold a discussion, and make a recommendation to city council 00:03:10.960 --> 00:03:21.100 regarding the 2019-2020 tax increment reinvestment zone number two, the West Park annual report. 00:03:21.100 --> 00:03:25.200 And I believe Jessica Rogers is going to give us that report, please. 00:03:25.200 --> 00:03:30.640 I'm actually going to turn it over to Erica Sullivan, who many of you know, our economic 00:03:30.640 --> 00:03:36.080 development analyst, who has worked on the West Park TURS for, I believe, since its creation. 00:03:36.080 --> 00:03:39.600 So she's going to give the report to you. 00:03:39.600 --> 00:03:40.600 Thank you, Erica. 00:03:40.600 --> 00:03:41.600 I'm going to go to your report here. 00:03:41.600 --> 00:03:48.440 I'm going to start by sharing my screen. 00:03:48.440 --> 00:03:56.600 Well, good morning. 00:03:56.600 --> 00:03:59.680 As you heard, my name is Erica Sullivan, I'm the analyst here at the city, and I'm going 00:03:59.680 --> 00:04:04.600 to be providing presentation on the 19-20 annual report for the TURS. 00:04:04.600 --> 00:04:09.980 The objective today is provide an overview of the West Park TURS and the 19-20 annual 00:04:09.980 --> 00:04:13.840 report. 00:04:13.840 --> 00:04:18.520 As many of you realize, we typically meet one time per year to review the TURS annual 00:04:18.520 --> 00:04:20.560 report that's required by the state. 00:04:20.560 --> 00:04:25.800 So we have a new member, relatively new, so I wanted to provide a little background. 00:04:25.800 --> 00:04:31.120 So in 2012, the city council adopted an ordinance designating and describing the boundaries 00:04:31.120 --> 00:04:32.760 of West Park TURS. 00:04:32.760 --> 00:04:36.640 You'll see the city limits in red and the West Park TURS on the west side of the map 00:04:36.640 --> 00:04:40.240 outlined in black. 00:04:40.240 --> 00:04:44.840 This map provides a little bit more detail of the boundaries. 00:04:44.840 --> 00:04:49.560 And the TURS is comprised of approximately 800 acres and is located north of Airport 00:04:49.560 --> 00:04:52.160 Road in the largest industrial area within the city. 00:04:52.160 --> 00:05:00.080 So you'll see Airport Road, you'll see Jim Crystal, and then 380. 00:05:00.080 --> 00:05:03.920 The West Park TURS district has established in its project and finance plans a budget 00:05:03.920 --> 00:05:09.480 for public improvements and these are necessary to support infrastructure in the zone. 00:05:09.480 --> 00:05:14.720 And so we have street improvements at 8 million, utilities and drainage at 5 million, industrial 00:05:14.720 --> 00:05:22.040 projects, which includes Chapter 380 agreements at 1.3 million for a total of 4.3 million 00:05:22.040 --> 00:05:27.200 estimated project costs for the TURS. 00:05:27.200 --> 00:05:31.160 There are two taxing entities that participate in the West Park TURS, the city of Denton 00:05:31.160 --> 00:05:40.120 and Denton County, and both participate at a rate of 40 percent for a period of 25 years. 00:05:40.120 --> 00:05:45.040 Now the TURS board structure consists of 14 members, 12 are from our Economic Development 00:05:45.040 --> 00:05:46.800 Partnership Board. 00:05:46.800 --> 00:05:51.120 Denton County has a single board member and Razor Investments, the developer also is a 00:05:51.120 --> 00:05:52.120 representative. 00:05:52.120 --> 00:05:56.760 And this structure was designed to streamline the process as the same group would be reviewing 00:05:56.760 --> 00:06:01.340 incentive agreements. 00:06:01.340 --> 00:06:05.520 The annual report is required by the State Comptroller of Public Accounts and is supposed 00:06:05.520 --> 00:06:08.480 to report on the previous year's activities. 00:06:08.480 --> 00:06:12.220 According to Chapter 311 of the tax code, the report is required to include the base 00:06:12.220 --> 00:06:18.520 and appraised value, revenue in the tax increment fund from all the participating tax entities, 00:06:18.520 --> 00:06:24.040 the purpose of the expenditures, the amount of principal and any outstanding bond indebtedness 00:06:24.040 --> 00:06:27.400 interest due. 00:06:27.400 --> 00:06:31.760 The first table we're going to go over provides the city valuation summary. 00:06:31.760 --> 00:06:36.960 You'll see on the left-hand column you have the tax year, you have the certified value, 00:06:36.960 --> 00:06:39.160 then you have the supplemental value. 00:06:39.160 --> 00:06:44.380 For both of our TURS, the last supplement for the calendar year in December is used 00:06:44.380 --> 00:06:46.400 for our cutoff point. 00:06:46.400 --> 00:06:51.280 Then you see the increase, decrease, and then the contribution and adjusted incremental 00:06:51.280 --> 00:06:55.600 value, and these are both at a rate of 40%. 00:06:55.600 --> 00:06:59.960 And then in the final column, you see the total revenue. 00:06:59.960 --> 00:07:17.560 So for 2019-20, the revenue that went into this particular TURS is $281,041. 00:07:17.560 --> 00:07:23.480 You'll now see the county valuation summary, and you'll see that on the bottom line there 00:07:23.480 --> 00:07:33.400 $107,227 went into this for the revenue and contribution for the county. 00:07:33.400 --> 00:07:39.360 And then you see the third table, which is the total combined city and county revenue, 00:07:39.360 --> 00:07:45.560 and so you'll see on the bottom line that a total of $388,268 went in, and there was 00:07:45.560 --> 00:07:56.080 also $7,709 in interest for a grand total of $395,977 contributed from both taxing entities. 00:07:56.080 --> 00:08:04.080 Now, the majority of this increase was due to Winko Foods, U.S. Cold Storage, and Exeter's 00:08:04.080 --> 00:08:09.880 new spec building for the new Lowe's Distribution Center. 00:08:09.880 --> 00:08:16.320 The market value you can see is $175.5 million – I'm sorry, the net taxable, but the market 00:08:16.320 --> 00:08:19.360 value is actually $191.3 million. 00:08:19.360 --> 00:08:23.880 As I've been presenting this on annual basis, we've seen that disparity get smaller and 00:08:23.880 --> 00:08:29.640 smaller as more and more of the property becomes developed and the ag exemptions removed. 00:08:29.640 --> 00:08:33.320 I'd be happy to entertain questions. 00:08:33.320 --> 00:08:40.960 I'm going to go ahead and stop sharing. 00:08:40.960 --> 00:08:47.400 Do we have any questions from the floor? 00:08:47.400 --> 00:08:50.640 So Erica, I do have a couple of questions, please. 00:08:50.640 --> 00:08:58.000 So I guess I'm supposed to know this, but I don't. 00:08:58.000 --> 00:09:02.000 We've got this piece of property there, and you prepared this report. 00:09:02.000 --> 00:09:06.460 This is a required report to the state comptroller? 00:09:06.460 --> 00:09:09.880 That's correct. 00:09:09.880 --> 00:09:16.000 It's governed by Chapter 311 of the tax code, and it requires us to submit an annual report 00:09:16.000 --> 00:09:23.040 to the state every year detailing the previous year's activities. 00:09:23.040 --> 00:09:26.560 So what do they do with this information? 00:09:26.560 --> 00:09:31.840 Actually they have a registry that they put out biannually, and it summarizes all of the 00:09:31.840 --> 00:09:35.740 tax increment reinvestment zones in the state. 00:09:35.740 --> 00:09:36.740 It's a little bit outdated. 00:09:36.740 --> 00:09:41.560 So if you go today, you'd probably be a little bit behind, but they do it on a biannual basis. 00:09:41.560 --> 00:09:49.760 So the state of Texas has some type of reinvestment credit that goes to people who invest in these 00:09:49.760 --> 00:09:51.720 particular zones? 00:09:51.720 --> 00:09:55.800 They track it, and it's required by the tax code. 00:09:55.800 --> 00:09:58.720 So who provides the credit? 00:09:58.720 --> 00:10:04.240 Is it the taxing entity rather than the state, and the state is keeping an idea of what's 00:10:04.240 --> 00:10:07.040 going on in their jurisdiction? 00:10:07.040 --> 00:10:09.680 They're keeping an eye on what's going on. 00:10:09.680 --> 00:10:14.760 Basically what happens is they increment, in a tax increment reinvestment zone and tax 00:10:14.760 --> 00:10:20.720 increment financing in general, you create a base year, and anything that increases over 00:10:20.720 --> 00:10:25.840 that year goes into the tax increment fund every year to support projects in that zone. 00:10:25.840 --> 00:10:29.400 All the entities in there are paying the same tax rate as you would in any other part of 00:10:29.400 --> 00:10:30.400 the city. 00:10:30.400 --> 00:10:34.760 You're just dedicating money to support projects in that zone over a long period of time. 00:10:34.760 --> 00:10:39.400 And that's a good sell for developers saying that this city, no matter what council changes 00:10:39.400 --> 00:10:45.560 is going to, and what other management changes, they've dedicated this amount of funds to 00:10:45.560 --> 00:10:49.400 this particular area over this period of time, in this case, 25 years. 00:10:49.400 --> 00:10:50.400 Thank you. 00:10:50.400 --> 00:10:55.640 I don't know if this is out of order or not, Jessica, but I have a question for you, Selwyn, 00:10:55.640 --> 00:11:05.480 since you are a Razor Ranch investor, how have you felt about the turrets? 00:11:05.480 --> 00:11:09.480 Do you feel like we're doing okay there? 00:11:09.480 --> 00:11:11.760 What's your thoughts there? 00:11:11.760 --> 00:11:13.200 Okay. 00:11:13.200 --> 00:11:17.360 I think it was, and first of all, just to make sure that it's not Razor Ranch, because 00:11:17.360 --> 00:11:22.320 we sold Razor Ranch, and Razor has nothing to do with Razor Ranch except for our name, 00:11:22.320 --> 00:11:26.120 so I just want to be careful about that. 00:11:26.120 --> 00:11:29.280 I think it actually worked really well with the city. 00:11:29.280 --> 00:11:38.040 I do think that because going forward, we don't have a lot of property left to develop, 00:11:38.040 --> 00:11:45.840 and I think how our partnership worked with the city and developing it, and also putting 00:11:45.840 --> 00:11:51.040 in all the infrastructure, I think it could be a great roadmap for other areas, and obviously 00:11:51.040 --> 00:11:56.640 we don't own these other areas, but I think, you know, Phil and myself would be happy to 00:11:56.640 --> 00:12:02.220 help with other, you know, to be consultants or do something on, or be a third party to 00:12:02.220 --> 00:12:07.400 look at which things work for us and which things were challenging. 00:12:07.400 --> 00:12:11.520 You know, clearly we still need to revisit some of the documents, because, you know, 00:12:11.520 --> 00:12:17.860 in this process, it was fluid and we had to, you know, prices changed and needs changed 00:12:17.860 --> 00:12:22.840 for the city since 2012, so there have been some, you know, changes that haven't quite 00:12:22.840 --> 00:12:30.960 been finalized in the documentation, but I think in general it went really well. 00:12:30.960 --> 00:12:31.960 Thank you, Sheila. 00:12:31.960 --> 00:12:32.960 I agree, Erica. 00:12:32.960 --> 00:12:33.960 I agree. 00:12:33.960 --> 00:12:37.320 And you'll hear more about the development in the next staff report. 00:12:37.320 --> 00:12:38.320 Okay. 00:12:38.320 --> 00:12:39.320 Oh, okay. 00:12:39.320 --> 00:12:40.320 Okay. 00:12:40.320 --> 00:12:41.320 Thank you. 00:12:41.320 --> 00:12:42.320 Thank you. 00:12:42.320 --> 00:12:43.320 Any, I recognize your gesture. 00:12:43.320 --> 00:12:44.320 Thank you. 00:12:44.320 --> 00:12:52.080 I wanted to comment on the big leap that we have in between 2018 and 2019, and how encouraging 00:12:52.080 --> 00:12:53.080 that looks. 00:12:53.080 --> 00:13:00.480 I know that we're very early into the 25-year projections and expectations, but I'm sure 00:13:00.480 --> 00:13:07.120 that that is a good sign as far as getting a return of value for the city of Denton, 00:13:07.120 --> 00:13:12.800 as well as Denton County, and so, and luckily, you know, everything that I read in here is 00:13:12.800 --> 00:13:19.880 that we can continue to have high expectations for these next couple of years, so, you know, 00:13:19.880 --> 00:13:23.200 as expected, it was a little bit of a slow start. 00:13:23.200 --> 00:13:28.720 However, we are still very early in this investment, and so I think this is a really great indicator 00:13:28.720 --> 00:13:32.760 of things to come, and I'm very encouraged by that, and these numbers are very helpful, 00:13:32.760 --> 00:13:36.160 and so is the way that it's being presented, so I'd also just want to say thank you for 00:13:36.160 --> 00:13:40.800 the work that was put into the presentation that really simplifies it for those of us 00:13:40.800 --> 00:13:42.840 that don't do what you do for our living. 00:13:42.840 --> 00:13:43.840 Thank you. 00:13:43.840 --> 00:13:44.840 Thank you. 00:13:44.840 --> 00:13:54.480 Any other questions or comments from the committee board members? 00:13:54.480 --> 00:14:03.280 Hearing none, seeing none, let's see, Erica, have we handled all of the exhibits that were 00:14:03.280 --> 00:14:04.280 listed there? 00:14:04.280 --> 00:14:11.360 Are we complete with 21-002? 00:14:11.360 --> 00:14:12.920 Well we provided the presentation. 00:14:12.920 --> 00:14:17.800 We also have an annual report and then a funding balance sheet at the end of that. 00:14:17.800 --> 00:14:19.520 That was provided in your backup materials. 00:14:19.520 --> 00:14:24.160 No, so I was asking, are we done with this particular agenda item, are we ready to go 00:14:24.160 --> 00:14:25.160 to the next one? 00:14:25.160 --> 00:14:26.160 Yes, sir. 00:14:26.160 --> 00:14:27.160 Okay. 00:14:27.160 --> 00:14:28.160 Thank you. 00:14:28.160 --> 00:14:34.640 Do we have a motion to recommend approval of the annual report? 00:14:34.640 --> 00:14:35.640 Yes. 00:14:35.640 --> 00:14:36.640 I'm sorry. 00:14:36.640 --> 00:14:37.640 Sorry. 00:14:37.640 --> 00:14:38.640 Thank you. 00:14:38.640 --> 00:14:39.640 Thank you. 00:14:39.640 --> 00:14:46.600 As indicated, we need to recommend approval of this report, and we'll entertain a motion. 00:14:46.600 --> 00:14:49.480 Mr. Chair, this is Jesse Davis. 00:14:49.480 --> 00:14:53.080 I'll move to approve the report or recommend approval of the report. 00:14:53.080 --> 00:14:54.720 Thank you, Jesse. 00:14:54.720 --> 00:14:56.400 We have a recommendation to approve. 00:14:56.400 --> 00:14:58.480 Do we have a second? 00:14:58.480 --> 00:14:59.480 Chair, this is Mark McClellan. 00:14:59.480 --> 00:15:01.040 I will second. 00:15:01.040 --> 00:15:02.040 Okay. 00:15:02.040 --> 00:15:04.020 Mark McClellan seconds. 00:15:04.020 --> 00:15:10.160 Do we have any further discussion before we vote? 00:15:10.160 --> 00:15:16.960 Hearing none, seeing none, we'll do the verbal acknowledgement once again. 00:15:16.960 --> 00:15:17.960 Let's see. 00:15:17.960 --> 00:15:18.960 Jesse? 00:15:18.960 --> 00:15:19.960 Aye. 00:15:19.960 --> 00:15:20.960 Tony Clarke? 00:15:20.960 --> 00:15:21.960 Aye. 00:15:21.960 --> 00:15:22.960 Selwyn Razor? 00:15:22.960 --> 00:15:23.960 Aye. 00:15:23.960 --> 00:15:24.960 Jason Tomlinson? 00:15:24.960 --> 00:15:25.960 Aye. 00:15:25.960 --> 00:15:26.960 Jill Jester? 00:15:26.960 --> 00:15:27.960 Aye. 00:15:27.960 --> 00:15:28.960 Jimmy Mejia? 00:15:28.960 --> 00:15:29.960 Aye. 00:15:29.960 --> 00:15:30.960 Mark McClellan? 00:15:30.960 --> 00:15:31.960 Aye. 00:15:31.960 --> 00:15:32.960 Lee Ramsey? 00:15:32.960 --> 00:15:33.960 Aye. 00:15:33.960 --> 00:15:42.760 And, Lee, did we miss you the first time on the first vote? 00:15:42.760 --> 00:15:43.760 Nope. 00:15:43.760 --> 00:15:44.760 You got me. 00:15:44.760 --> 00:15:45.760 Okay. 00:15:45.760 --> 00:15:46.760 All right. 00:15:46.760 --> 00:15:47.760 All right. 00:15:47.760 --> 00:15:48.760 Good deal. 00:15:48.760 --> 00:15:50.940 And then John Baines approves the recommendation as well. 00:15:50.940 --> 00:15:54.800 So I believe we're unanimous, and I don't think we missed anyone. 00:15:54.800 --> 00:15:59.760 I believe Bob Eames has joined us, at least via phone. 00:15:59.760 --> 00:16:00.760 Okay. 00:16:00.760 --> 00:16:01.760 Okay. 00:16:01.760 --> 00:16:02.760 Thank you. 00:16:02.760 --> 00:16:03.760 Thank you, Jessica. 00:16:03.760 --> 00:16:04.840 Bob Eames, we have you. 00:16:04.840 --> 00:16:10.920 Can you unmute, please? 00:16:10.920 --> 00:16:23.880 Good morning, Bob. 00:16:23.880 --> 00:16:28.960 See, we don't quite have an audio for you, Bob. 00:16:28.960 --> 00:16:32.160 So how about we do this, Bob? 00:16:32.160 --> 00:16:34.960 We'll catch you on the next one. 00:16:34.960 --> 00:16:42.120 And we have another report, and by then, we should have all the technical difficulties 00:16:42.120 --> 00:16:43.960 taken care of. 00:16:43.960 --> 00:16:44.960 Okay. 00:16:44.960 --> 00:16:48.360 We're ready to go to the next one, Jessica? 00:16:48.360 --> 00:16:49.840 Yes, sir. 00:16:49.840 --> 00:16:51.080 Thank you. 00:16:51.080 --> 00:16:59.240 We're now on agenda item, TURS 21-003, receive a report, hold a discussion, and give staff 00:16:59.240 --> 00:17:04.800 direction regarding the industrial development and tax increment reinvestment zone number 00:17:04.800 --> 00:17:05.800 two. 00:17:05.800 --> 00:17:06.800 That's the West Park TURS. 00:17:06.800 --> 00:17:09.760 And I believe, Erica, you're up once again, please. 00:17:09.760 --> 00:17:10.760 Yes. 00:17:10.760 --> 00:17:13.760 Let me share my screen. 00:17:13.760 --> 00:17:21.680 My name's Erica Sullivan, and I'm the analyst here, and I'm going to be providing a report 00:17:21.680 --> 00:17:26.240 on the industrial developments in the West Park TURS. 00:17:26.240 --> 00:17:30.280 The objective of this presentation is to overview the current and future development in the West 00:17:30.280 --> 00:17:34.520 Park TURS reinvestment zone number two. 00:17:34.520 --> 00:17:41.560 The first project that was developed in the West Park TURS was Winko Foods, and they constructed 00:17:41.560 --> 00:17:48.680 a regional 800,000 square foot multi-state distribution facility on 77 acres in the zone. 00:17:48.680 --> 00:17:53.040 Winko wanted to control their timeline, so Winko agreed to execute phase one of the reimbursement 00:17:53.040 --> 00:17:58.600 agreement with our developer, Westray, and was awarded an economic incentive to reimburse 00:17:58.600 --> 00:18:00.220 these improvements. 00:18:00.220 --> 00:18:08.120 They have 165 full-time employees and 130 million capital investment. 00:18:08.120 --> 00:18:11.720 The next project was United States Cold Storage. 00:18:11.720 --> 00:18:15.440 This is a refrigerated warehouse on a 40-acre site. 00:18:15.440 --> 00:18:21.520 And they employ 67 full-time employees with a $34 million capital investment. 00:18:21.520 --> 00:18:27.680 And they generate 1.5 megawatts per year of power use, so they are a top 25 customer for 00:18:27.680 --> 00:18:33.220 Denton Municipal Electric. 00:18:33.220 --> 00:18:35.800 Another development in the TURS is the retreat at Denton. 00:18:35.800 --> 00:18:41.760 This is a multi-family development that has been constructed, and it includes 193 units, 00:18:41.760 --> 00:18:46.520 and it's on 22 acres in the southern section of the zone. 00:18:46.520 --> 00:18:53.660 This construction accelerated some of the improvements along precision. 00:18:53.660 --> 00:18:57.540 New and future developments, Tyson Sales and Distribution. 00:18:57.540 --> 00:19:02.860 This company is planning to construct 350,000 square foot, highly automated refrigerated 00:19:02.860 --> 00:19:09.840 distribution center, and they estimate 100 full-time employees with a $97 million capital 00:19:09.840 --> 00:19:10.840 investment. 00:19:10.840 --> 00:19:16.220 They're a 2 megawatt annual electric demand user, which will add another top 25 customer 00:19:16.220 --> 00:19:18.900 for Denton Municipal Electric. 00:19:18.900 --> 00:19:23.620 This project has been paused as the company reexamines and prioritizes their expansions 00:19:23.620 --> 00:19:25.680 due to COVID-19. 00:19:25.680 --> 00:19:31.960 We remain in contact with Tyson and will bring any additional information forward when available. 00:19:31.960 --> 00:19:39.680 Our speculative developments, Denton Crossing at I-35, also known as Ironwood. 00:19:39.680 --> 00:19:44.800 This is a, at full buildout, will be a 1.2 million square foot industrial spec space along 00:19:44.800 --> 00:19:45.800 western. 00:19:45.800 --> 00:19:49.040 There will be four buildings upon completion. 00:19:49.040 --> 00:19:53.080 Buildings one and two are in the concept plan stage, and buildings three and four are currently 00:19:53.080 --> 00:19:57.600 under construction. 00:19:57.600 --> 00:20:04.320 Industrial speculative development, Exeter, what I mentioned, has completed 649,000 square 00:20:04.320 --> 00:20:09.520 foot building that will be the home to the Lowe's Home Improvement, and this is a distribution 00:20:09.520 --> 00:20:10.520 center. 00:20:10.520 --> 00:20:15.880 Hunt Southwest is developing a 23 acre site, and it's planned to have a 250,000 square 00:20:15.880 --> 00:20:25.080 foot warehouse space with a proposed build-a-suit for another 227,420 square foot building. 00:20:25.080 --> 00:20:32.000 West Park Industrial is in the planning stages, and this is a 16 acre parcel on southwestern 00:20:32.000 --> 00:20:40.520 that will be divided into two sites that will each have 100,000 square feet. 00:20:40.520 --> 00:20:45.580 This is a map of the West Park Industrial area of what's been developed inside and outside 00:20:45.580 --> 00:20:46.760 the TURS. 00:20:46.760 --> 00:20:50.840 You'll see the TURS boundary in yellow, and then you'll see some of the projects that 00:20:50.840 --> 00:20:58.520 we discussed in purple, leased and spec space, and in red, recently sold and developed. 00:20:58.520 --> 00:21:05.560 Under contract is included in orange, available is included in green, and then finally on 00:21:05.560 --> 00:21:11.120 the southern portion of the zone, you'll see the police department in blue, and this gives 00:21:11.120 --> 00:21:17.720 you an idea of what's going on out there currently. 00:21:17.720 --> 00:21:23.760 And then the final thing is a summary of the West Park Industrial development. 00:21:23.760 --> 00:21:27.920 So you'll see in the first column, you have the development itself, the estimated square 00:21:27.920 --> 00:21:34.480 footage, the status, if there's any additional square footage available, a number of these 00:21:34.480 --> 00:21:38.320 are multi buildings, and then the project type. 00:21:38.320 --> 00:21:43.320 So that you can see at the bottom, the square footage, it's roughly 1.6 million has been 00:21:43.320 --> 00:21:48.920 constructed and/or occupied, there's a remaining almost 2 million that's still planned and 00:21:48.920 --> 00:21:53.440 under construction that we can market, and then the total square footage in the entire 00:21:53.440 --> 00:21:57.960 West Park TURS is close to 3.6 million. 00:21:57.960 --> 00:22:03.160 And this was just an update to give you an idea of what's going on there. 00:22:03.160 --> 00:22:05.960 I'd be happy to interchange questions. 00:22:05.960 --> 00:22:16.000 Erica, could you go back to that last slide where you have all of the different companies 00:22:16.000 --> 00:22:18.840 and the square footage, please? 00:22:18.840 --> 00:22:19.840 Sure. 00:22:19.840 --> 00:22:24.840 Summary slide. 00:22:24.840 --> 00:22:28.440 Yes. 00:22:28.440 --> 00:22:32.960 One more. 00:22:32.960 --> 00:22:33.960 It's blocked. 00:22:33.960 --> 00:22:39.960 Try resharing. 00:22:39.960 --> 00:22:45.040 Okay. 00:22:45.040 --> 00:22:51.880 Okay. 00:22:51.880 --> 00:22:54.600 Thank you. 00:22:54.600 --> 00:22:59.800 So board members, please feel free to prepare your questions. 00:22:59.800 --> 00:23:02.440 I did have a few I was going to ask. 00:23:02.440 --> 00:23:06.720 And then we'll continue if there are some more. 00:23:06.720 --> 00:23:07.800 Tell us about Exeter. 00:23:07.800 --> 00:23:13.780 What is Exeter, Erica, or who is Exeter? 00:23:13.780 --> 00:23:18.280 Exeter is a developer that's developed spec space in the zone. 00:23:18.280 --> 00:23:23.000 And so they completed a 649,000 square foot building. 00:23:23.000 --> 00:23:25.960 And that's going to be home to the new Lowe's distribution center. 00:23:25.960 --> 00:23:28.520 So they built spec space out there. 00:23:28.520 --> 00:23:29.520 I see. 00:23:29.520 --> 00:23:30.520 Okay. 00:23:30.520 --> 00:23:33.600 And Hunt Southwest, what are they doing? 00:23:33.600 --> 00:23:34.600 Okay. 00:23:34.600 --> 00:23:37.880 So they're developing on a 23-acre site. 00:23:37.880 --> 00:23:42.420 So they're developing two buildings, one 250,000 square feet. 00:23:42.420 --> 00:23:47.720 And then another build a suit on seven acres for another 227,420 square feet. 00:23:47.720 --> 00:23:51.280 So they'll be over 400,000 for both. 00:23:51.280 --> 00:23:56.240 So Hunt then will have the opportunity to have some tenants in their property. 00:23:56.240 --> 00:23:57.560 Okay. 00:23:57.560 --> 00:24:04.440 And then I saw on the next slide that U.S. cold storage had 92,000. 00:24:04.440 --> 00:24:08.080 I was thinking they had much more square footage than that. 00:24:08.080 --> 00:24:12.000 Actually, they have about 350,000. 00:24:12.000 --> 00:24:17.160 So what does this 93 represent? 00:24:17.160 --> 00:24:18.160 That is an error. 00:24:18.160 --> 00:24:20.880 It was probably done earlier and not updated. 00:24:20.880 --> 00:24:21.880 Okay. 00:24:21.880 --> 00:24:23.600 I apologize for that. 00:24:23.600 --> 00:24:26.600 I was thinking that they were a little bit larger than that. 00:24:26.600 --> 00:24:28.080 Yes, they are. 00:24:28.080 --> 00:24:32.480 Tyson and U.S. cold are very similar in square footage. 00:24:32.480 --> 00:24:34.640 I don't have it here, but I remember. 00:24:34.640 --> 00:24:35.640 Okay. 00:24:35.640 --> 00:24:36.640 Okay. 00:24:36.640 --> 00:24:38.960 I'm going to stop sharing. 00:24:38.960 --> 00:24:39.960 Okay. 00:24:39.960 --> 00:24:42.200 So we can discuss. 00:24:42.200 --> 00:24:44.080 Okay. 00:24:44.080 --> 00:24:49.120 Any other conversation or questions from the other committee members? 00:24:49.120 --> 00:24:51.160 We have one from Jesse Davis, please. 00:24:51.160 --> 00:24:52.880 Thank you, Mr. Chair. 00:24:52.880 --> 00:25:00.680 A year ago when we last met as this board and discussed this part of the world, we talked 00:25:00.680 --> 00:25:04.840 a little bit about some of the prospects for the remaining properties, some of the challenges 00:25:04.840 --> 00:25:05.840 specifically. 00:25:05.840 --> 00:25:11.960 And I wonder if, and maybe Selwyn is a question for you as well, if there are any particular 00:25:11.960 --> 00:25:16.080 challenges we foresee for future development out there and if there's anything that this 00:25:16.080 --> 00:25:21.320 board or, you know, wearing our other hats, members of this board ought to be thinking 00:25:21.320 --> 00:25:27.200 about for those remaining properties that we'd like to see developed out there. 00:25:27.200 --> 00:25:28.720 Sure. 00:25:28.720 --> 00:25:32.600 I think, Erica, you want to, can you put the map back up while I? 00:25:32.600 --> 00:25:33.600 Certainly. 00:25:33.600 --> 00:25:36.280 Maybe it'd be easier to look at it that way. 00:25:36.280 --> 00:25:41.040 I mean, I think what you're, we really have one large piece left in that. 00:25:41.040 --> 00:25:47.440 And it's, you know, it's south of the old, we'll refer to it as the Selwyn school site. 00:25:47.440 --> 00:25:53.160 And I mean, as you know, it just recently went under contract with Billingsley who I've 00:25:53.160 --> 00:25:56.480 had various conversations with. 00:25:56.480 --> 00:26:00.640 And we'll see, we'll get the picture. 00:26:00.640 --> 00:26:05.400 I mean, I think what you're seeing is that the least attractive sites are the ones that 00:26:05.400 --> 00:26:10.880 are left and most of them because of, you know, flood issues, floodplain issues. 00:26:10.880 --> 00:26:17.640 I think the Selwyn school site that, you know, there was this pond or I want to say legal 00:26:17.640 --> 00:26:21.200 pond, not really well, well managed water. 00:26:21.200 --> 00:26:22.200 Yeah. 00:26:22.200 --> 00:26:23.760 See where they stand are under contract. 00:26:23.760 --> 00:26:28.200 I want to point to my screen that the green 80 plus net acres there. 00:26:28.200 --> 00:26:29.200 Yes. 00:26:29.200 --> 00:26:34.600 I think depending on, you know, we were in conversations with many of the people that 00:26:34.600 --> 00:26:38.180 have already, you know, that have already purchased land from us that are looking at 00:26:38.180 --> 00:26:45.000 expanding there and potentially with Billingsley again, it's, it's most likely going to be, 00:26:45.000 --> 00:26:49.160 you know, warehouse, you know, space as well. 00:26:49.160 --> 00:26:53.000 But most of the problems there have been with, with flood issues. 00:26:53.000 --> 00:26:58.760 But I think if now that you have somebody taking it under control, the Selwyn school, 00:26:58.760 --> 00:27:02.000 they'll, they'll be able to manage that. 00:27:02.000 --> 00:27:06.960 And you know, I think it's just a matter of time at this point. 00:27:06.960 --> 00:27:08.680 We have strong interest in that. 00:27:08.680 --> 00:27:13.960 But again, what, what it's going to be most likely, I think similar to what Billingsley 00:27:13.960 --> 00:27:21.080 is doing north of us and what you've already seen in the, in the rest of West park. 00:27:21.080 --> 00:27:22.080 Thank you. 00:27:22.080 --> 00:27:23.080 That answers my question nicely. 00:27:23.080 --> 00:27:24.080 I appreciate it. 00:27:24.080 --> 00:27:25.080 Sure. 00:27:25.080 --> 00:27:33.040 We have any other questions from the committee. 00:27:33.040 --> 00:27:37.560 I would just like to add that we know that the cost of improvements is going to exceed 00:27:37.560 --> 00:27:42.560 the total amount that we estimated in the project plan and finance plans. 00:27:42.560 --> 00:27:45.720 So we are aware of that. 00:27:45.720 --> 00:27:48.560 You mean to finish out the development, Tony Clark? 00:27:48.560 --> 00:27:53.400 Yeah, Mr. Chairman, along those lines, Erica, I think there was something in our package 00:27:53.400 --> 00:27:55.840 that estimated those costs. 00:27:55.840 --> 00:28:00.960 Now I was curious as to what those costs are and what the city has, has budgeted or committed 00:28:00.960 --> 00:28:06.640 to infrastructure wise to continue to allow those properties out there to be developable. 00:28:06.640 --> 00:28:11.680 Is that a good way of putting that we have a number of that or idea? 00:28:11.680 --> 00:28:13.080 Thank you. 00:28:13.080 --> 00:28:14.080 Yes. 00:28:14.080 --> 00:28:20.640 The, the project cost involves street improvements for 8 million utilities and drainage for 5 00:28:20.640 --> 00:28:26.880 million industrial projects for a little under 1.3 million for a total of $4.3 million. 00:28:26.880 --> 00:28:33.640 These were written generically and openly so we wouldn't have to amend the plan so, 00:28:33.640 --> 00:28:34.640 so many times. 00:28:34.640 --> 00:28:39.480 So street improvements, if you want the definitions for that, that includes construction and reconstruction 00:28:39.480 --> 00:28:43.740 of paving improvements capable of handling heavy truck traffic that can provide common 00:28:43.740 --> 00:28:48.920 turning radius for semi-trailers and may consist of it's not limited to primary secondary major 00:28:48.920 --> 00:28:51.640 arterial thoroughfares and collector streets. 00:28:51.640 --> 00:28:54.960 And this is to improve access utilities and drainage. 00:28:54.960 --> 00:28:58.780 We mentioned that a number of the properties are in the floodplain. 00:28:58.780 --> 00:29:03.280 This includes the extension of water, wastewater, because this was a undeveloped area, lines 00:29:03.280 --> 00:29:06.360 along the right of ways of the streets within the district. 00:29:06.360 --> 00:29:10.760 Water and wastewater lines will be built adequately accommodate the district build out. 00:29:10.760 --> 00:29:15.520 We discussed the floodplain and then there's also adequate storm water drainage as well. 00:29:15.520 --> 00:29:20.400 And then the final project category of industrial projects, this may include grants loans or 00:29:20.400 --> 00:29:26.080 Chapter 380s and services for public and private development, eligible tourist project costs 00:29:26.080 --> 00:29:31.360 are not limited to public uses specifically, including that stimulate economic development 00:29:31.360 --> 00:29:35.800 under Chapter 380, which I mentioned. 00:29:35.800 --> 00:29:40.040 And these are outlined in our project plan and finance plans. 00:29:40.040 --> 00:29:44.960 Does that answer your question, Tony? 00:29:44.960 --> 00:29:45.960 I think so. 00:29:45.960 --> 00:29:49.400 I guess maybe Jesse or Selwyn could just expand on that. 00:29:49.400 --> 00:29:51.960 Are we are we taking the right approach? 00:29:51.960 --> 00:29:56.280 Are we investing the dollars that we need to as a city to continue to make those properties 00:29:56.280 --> 00:30:08.600 attractive for developers to come in and continue to grow that area for us? 00:30:08.600 --> 00:30:14.560 I think at this point, we mean most of everything's I mean, unless I'm wrong here, just Jessica 00:30:14.560 --> 00:30:20.460 or Eric, I mean, the only thing that's left is really development within infrastructure 00:30:20.460 --> 00:30:29.520 and you'd probably be negotiating with Billingsley as opposed to us on on water issues on floodplain 00:30:29.520 --> 00:30:30.520 issues. 00:30:30.520 --> 00:30:34.900 I think a lot of it is just, you know, there's a negotiation between us about what becomes 00:30:34.900 --> 00:30:38.040 a price on what we net out, what is gross, what is net. 00:30:38.040 --> 00:30:41.160 And that's just kind of wheeling and dealing kind of discussions. 00:30:41.160 --> 00:30:47.160 But I don't really think anything now is substantial in our area within TURS. 00:30:47.160 --> 00:30:51.960 Now outside of our area, I think there is some other infrastructure issues, but I don't 00:30:51.960 --> 00:31:01.000 necessarily think within our what we consider West Park, there's much left to do, if anything. 00:31:01.000 --> 00:31:04.160 I can add a little bit more clarification for the board. 00:31:04.160 --> 00:31:07.920 It's probably been a long time since everyone's reviewed the project plan, but in the project 00:31:07.920 --> 00:31:13.360 plan itself, there is an identification of some more specificity in the projects. 00:31:13.360 --> 00:31:18.960 Western Boulevard is a great example of an improvement that was done in conjunction with 00:31:18.960 --> 00:31:20.560 this with the TURS. 00:31:20.560 --> 00:31:25.080 And so when WINCO needed that improvement to be made, they took on those improvements 00:31:25.080 --> 00:31:27.720 and they're now being reimbursed back through the TURS. 00:31:27.720 --> 00:31:32.680 And so those are the types of projects that we're going, Jim Crystal being precision being 00:31:32.680 --> 00:31:37.400 the other kind of major infrastructure projects that were identified. 00:31:37.400 --> 00:31:42.640 The city is aware that obviously Jim Crystal as development occurs will likely need to 00:31:42.640 --> 00:31:45.120 be improved sooner rather than later. 00:31:45.120 --> 00:31:48.860 And that's something that we look at pretty regularly and we're doing a little bit more 00:31:48.860 --> 00:31:55.120 of a deep dive into that particular roadway right now in conjunction with our capital 00:31:55.120 --> 00:31:57.160 projects department. 00:31:57.160 --> 00:32:02.920 And how do we get that roadway where we need it to be to support the development that's 00:32:02.920 --> 00:32:03.920 occurring. 00:32:03.920 --> 00:32:08.080 And then the other piece of that, like Selwyn mentioned, are those adjacent pieces. 00:32:08.080 --> 00:32:14.240 So there are roadways that are immediately adjacent to the TURS that get impacted by 00:32:14.240 --> 00:32:16.360 development within the TURS. 00:32:16.360 --> 00:32:23.640 The piece of Western Boulevard north of Jim Crystal, again, I'm sorry, if you're not looking 00:32:23.640 --> 00:32:28.800 on a map, it's kind of hard to visualize, but the piece that connects Western Boulevard, 00:32:28.800 --> 00:32:33.880 a piece of Western Boulevard that connects from Jim Crystal to US 380, lies outside of 00:32:33.880 --> 00:32:34.880 the TURS. 00:32:34.880 --> 00:32:36.680 And so it has not been improved. 00:32:36.680 --> 00:32:40.360 And so those improvements are also not supported by funds from within the TURS. 00:32:40.360 --> 00:32:47.000 And so there are adjacent impacts that occur that we're looking at in a really holistic 00:32:47.000 --> 00:32:54.680 level from our team of how does the TURS impact that development and how can we best situate 00:32:54.680 --> 00:33:00.980 properties that are influenced by the TURS for future development. 00:33:00.980 --> 00:33:04.040 These specifics are actually included in the reimbursement agreement. 00:33:04.040 --> 00:33:08.800 And we work with Kimley-Horn, that is the engineering firm that the developer uses, 00:33:08.800 --> 00:33:19.200 and they provide us with regular updates on that as well, on phasing and whatnot. 00:33:19.200 --> 00:33:21.200 Thank you guys for that. 00:33:21.200 --> 00:33:24.680 Good information. 00:33:24.680 --> 00:33:26.160 Any other questions from anyone? 00:33:26.160 --> 00:33:35.400 I'm sitting here with a couple, but I'm reluctant to ask, but I'd rather defer to someone else. 00:33:35.400 --> 00:33:47.880 Okay, we'd like to entertain a motion to accept the recommendation at this point. 00:33:47.880 --> 00:33:50.040 So no motion needed on this one. 00:33:50.040 --> 00:33:52.480 This was just a discussion. 00:33:52.480 --> 00:33:57.320 Last year, we recognized that there was probably a level of detail that needed to be provided 00:33:57.320 --> 00:34:02.200 to this board related to development that's not required as part of the annual report. 00:34:02.200 --> 00:34:07.760 So we wanted to give everyone the opportunity to discuss what's happening in sort of a more 00:34:07.760 --> 00:34:11.760 global perspective as opposed to what's statutorily required. 00:34:11.760 --> 00:34:19.400 So we're here to answer questions or take any guidance you have related to other information 00:34:19.400 --> 00:34:24.440 that might be helpful specific to the TERS, but no motion is necessary. 00:34:24.440 --> 00:34:30.520 Well, Jessica, with that being said, I think I will ask the question, just kind of to continue 00:34:30.520 --> 00:34:34.460 Tony Clark's question. 00:34:34.460 --> 00:34:37.600 And I hope this isn't a bad analogy. 00:34:37.600 --> 00:34:44.280 I think there was a movie called, what, "Seven Brides for Seven Husbands" at one time, and 00:34:44.280 --> 00:34:50.300 I'm thinking the seven of the husbands, excuse me, several of the husbands have been taken 00:34:50.300 --> 00:34:58.000 away and now we have the less favorable husbands left and it's going to be hard to dress them 00:34:58.000 --> 00:34:59.000 up and make it simpler. 00:34:59.000 --> 00:35:00.000 Yeah, you got it. 00:35:00.000 --> 00:35:01.000 Yes. 00:35:01.000 --> 00:35:02.000 They need to go to the gym. 00:35:02.000 --> 00:35:03.000 Yeah. 00:35:03.000 --> 00:35:04.000 Okay. 00:35:04.000 --> 00:35:05.000 All right. 00:35:05.000 --> 00:35:06.000 Well, good. 00:35:06.000 --> 00:35:08.520 Some of them, I think, are under construction. 00:35:08.520 --> 00:35:09.520 Okay. 00:35:09.520 --> 00:35:10.520 All right. 00:35:10.520 --> 00:35:11.520 Thank you. 00:35:11.520 --> 00:35:16.480 But they're beginning to look good because all the other ones are gone, so… 00:35:16.480 --> 00:35:19.480 All the good looking ones are gone, so now we're working on the ones that they were… 00:35:19.480 --> 00:35:20.480 Yeah, so they look pretty good, though. 00:35:20.480 --> 00:35:21.480 So they're beginning to look okay. 00:35:21.480 --> 00:35:30.600 I don't want to make a reference of 2 a.m. at the bar, but yeah, that's good. 00:35:30.600 --> 00:35:31.600 Thank you. 00:35:31.600 --> 00:35:32.600 Thank you. 00:35:32.600 --> 00:35:33.600 All right. 00:35:33.600 --> 00:35:41.760 All right, so do we have any concluding items according to the agenda? 00:35:41.760 --> 00:35:44.640 Okay. 00:35:44.640 --> 00:35:50.960 So we'll entertain a motion to adjourn the meeting. 00:35:50.960 --> 00:35:54.720 I'll make that motion. 00:35:54.720 --> 00:35:55.720 Lee Ramsey makes the motion. 00:35:55.720 --> 00:35:56.720 Need a second? 00:35:56.720 --> 00:35:57.720 Sure. 00:35:57.720 --> 00:35:58.720 Sal will make the second, too. 00:35:58.720 --> 00:35:59.720 All right. 00:35:59.720 --> 00:36:05.280 So thank you. 00:36:05.280 --> 00:36:09.360 So I'm just going to be brief here. 00:36:09.360 --> 00:36:13.320 If you feel good about this, just wave your hand, and we'll go from there. 00:36:13.320 --> 00:36:15.800 We'll go ahead and adjourn the meeting. 00:36:15.800 --> 00:36:19.760 And thank everyone for your participation today, and Happy New Year. 00:36:19.760 --> 00:36:22.720 Hope that 2021 is a good one for all of us. 00:36:22.720 --> 00:36:23.720 Thank you. 00:36:23.720 --> 00:36:24.720 Thank you. 00:36:24.720 --> 00:36:25.720 Thank you. 00:36:25.720 --> 00:36:26.720 Thank you.