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 All right good morning everyone I have just after 11 o'clock and I believe we

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 have established a quorum so we're gonna go ahead and start the meeting it is

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 11.03 on Wednesday January 8 2025 we're gonna start with the review of the ADP

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 board minutes any questions for those that were for those minutes that were

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 shared if no questions I'll receive have a move and a second second any

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 discussion around them hearing done everyone a favor signify by saying aye

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 aye any opposed so carries thanks everyone let's move into item B which is

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 24 - 0 8 9 reappoint members at EVP and to the to the downtown Economic

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 Development Committee any questions on that

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 this is a reminder of the dedicated committee of this board so we are you do

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 oversee the dead at board directors and so Vanessa and the exhibit had listed more

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 members that are seeking reappointment so Scott I believe it could be one

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 appointment and then also we're asking you to vote nominate a chair from this

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 board to serve on the dead at committee and that's something that Jeremy Pikes

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 was serving on for the past year and you may recall last meeting possible and so

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 anyone that's maybe willing to serve on the dead at core as chair for the room

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 next year that's what we're seeking to vote on - any questions on that just

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 because you've knocked off your nameplate so no one can see

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 consideration all right so first do we need to do first the the board members

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 and get it for the reappointment I'm sorry and then from that choose or

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 nominate a chair that appropriate reappoint the people who are eligible for

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 reappointment and then their vacancy thank you okay so three steps is that

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 right first is recognizing voting for reappointment of those who are already

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 established and those names are on the monitors at this point so each member

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 needs attendance requirements for reappointment so Peggy caps Hank

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 Dickinson Rita Maloney with the county and Brock McKnight are seeking

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 reappointment thank you is there a second to that thank you I'll bet you do

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 and any discussion on it all right if ready to vote all in favor signify by

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 saying aye aye any opposed that that carries thank you for that and then the

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 second is to nominate folks to continue the urge to fulfill like chair has to be

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 a member of this body so the first four were second year reappointments those

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 two it sounds like those are also reappointments another motion to

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 reappoint the people to continue that term okay all right so that's Jill and

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 Pearson Kristen rather so I'll take that again second thing Jeremy any questions

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 or conversation around it hearing that all in favor say goodbye but signify by saying aye aye any

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 opposed that carries as well and how many do we need for completion of that

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 board nominees we've successfully renominated so we've addressed the the

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 board needs and now we need to identify and nominate a board chair from that and

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 that comes from this board thank you all right the chair will accept nominations

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 or that I'm not doing this but you can nominate yourself right yeah yeah I think

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 I might even return the favorite Tony's I might even know what I tell you this

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 is my last meeting when you meet it's the every other month I believe the next

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 meeting for daddy is in February it's the first I'm sorry every six is every

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 other month the first Thursday Thursday Thursday the first Thursday at 830 and

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 it's usually for an hour in the morning a third

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 background she was we're looking at ways to consolidate as you recall what we

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 discussed last December we have four boards direct economic development board

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 so we have three downtown boards that we're working with right now and we some

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 of our the content that we're presenting every month is repetitive and so this

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 position it may depending on how the board consolidation looks it may not be

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 the full year right there's other members willing to I'm sure serve us

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 maybe fill in during those meetings if you can't make it we have a nomination

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 by your second it's in this same room break you're comfortable with the

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 nomination thank you we'll move forward with a vote all in favor of nominating

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 rec who has agreed to participate as such signify by saying aye aye accepting

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 you know objections no objections noted thank you we appreciate you stepping in

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 and Jeremy thank you for serving as well thank you all right that was supposed to

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 take 15 minutes and it felt a lot longer but I think we're done with it thank you

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 all all right work session we're ready to go into all right we'll begin the work

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 session with the item a EDP 24 - 0 and 9 0

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 Erica Sullivan will be presenting this well Erica gets ready I had a couple of

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 folks asked me what the other person looked like and the other person looks

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 like my dermatologist so always bet on the dermatologist and any direct

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 consultant good morning my name is Erica Sullivan I'm the economic development

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 administrator here at the city and I'll be giving a joint presentation today

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 with Paul Sherman he's the economist from impact data source so I'll be

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 conducting the first part which is a presentation and he will follow with a

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 live demonstration of our impact model so impact dashboard from impact data

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 source on it is an Austin based company it's an economic development modeling

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 tool that's fully customizable it allows us to perform economic impact analysis

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 to see over here as well as an incentive analysis period prior practice we used a

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 formula from UNT Center for economic development research that anticipated

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 those spin-off effects but this is much more detailed and provides much more

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 information which we're going to go into some of the key inputs that staff puts

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 into the model or jobs the average weighted salaries the NAICS code capital

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 investment we include other things like sales tax sales tax spending a number of

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 truck nights they might be spending for to estimate hotel occupancy taxes for

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 example and so the way the model works is you have an event so it's either a

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 contraction of a business or it's an expansion or a new business locating

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 we're going to focus on the newer expanding business so you'll see the

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 economic impact here which is the direct impact today we're using Southwire

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 also called project orange which we approved in the fall as an example

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 project so the direct impact or the direct jobs are created by the project so

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 in the case of Southwire that's 95 derived jobs so then you have your

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 indirect impact and you're induced these are your ripple effects or spin-offs so

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 indirect as a jobs and sales output companies supplying goods or services to

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 the new expanded industry if they hire a consulting firm or they hire a CPA for

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 example induced impact the jobs and sales output created with an employee

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 from the new expanded job spends their money at another establishment so in this

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 case we have an expanded manufacturing facility they might be spending money at

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 a restaurant and then that restaurant hires employees so those together is our

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 spin-off and that's 64 for a total of 159 jobs and they use a rims model from

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 the Department of Commerce to come up with the multipliers for both the number

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 of jobs and for their wishes and then the fiscal impact is a tax revenue

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 generated by the project so that would be your sales or indoor property and

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 that's why the businesses and the households that are created from the

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 employees that are relocating so then the fiscal impact also includes and we

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 that's one of the things we really liked about this model is the cost for

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 utility and governmental services particularly since we have debt municipal

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 electric our own municipal utility so fiscal impacts we'll go over the benefits

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 a little bit more detail so the public tax revenue we talked about ad loan or

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 property tax sales tax sales tax can include a number of different things so

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 you have sales tax that they a taxable spending from the business that taxable

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 sales that they generate hotel occupancy they also are spending money while

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 they're staying here sales tax purchasing items while they're here gas

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 and food other public revenue so utility revenue franchise fees building and

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 permit fees now we look at the fiscal impact cost after we looked at the

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 benefits the cost providing municipal services and utility services and of

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 course the incentive so the property tax abatement or rebate so ad valorem sales

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 tax that could be a Texas direct pay permit for the construction of the

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 facility or it can also be the sales tax cost share they generate and then DME

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 our municipal electric utility growth rider so that's a five-year demand

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 charge billing that's reduced from 50% for the five-year period at 10%

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 decreasing and then we have a cash incentive so through our catalyst fund

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 we can offer relocation expansion our new headquarters grant we can also do

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 our job based grant residency bonus and then infrastructure so utility line fine

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 for water and wastewater plan lines and here we're going to get into the model

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 and into summary sheet a little bit and Paul will go into it in more detail but

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 the net benefits that's from the business or workforce you look at the

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 additional revenues created so it is a less the incentive and the government

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 services and so the net in general should be positive if you see here over

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 the ten-year period you've got a chart as well as on my hand side you've got

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 all the benefits listed out and you also have it in your backup materials but the

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 net benefits less incentives is in yellow and then the net benefits are

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 orange and you'll see that's about the chart there and on top here as well so

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 it's 1.7 for that 10-year period for this project for the net benefits less

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 the incentive and so we have the rate of return and payback period and keep in

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 mind that this is quantitative right we have qualitative things we look at as

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 well fine arts is a good example of that but right now we're focusing on the

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 quantitative so the rate of return the larger the rate of turn generally the

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 better it is for the city and the payback the shorter the term the better

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 is so in this particular project we had a rate of return of 22.9 percent and a

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 payback period of 9 years which is ideal so if you see the chart over here you

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 can see that the cumulative net benefit and the total incentive in that Nexus

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 where they meet that's your payback period and then I'm going to hand it

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 over to Paul Sharon who's going to do the live demo and then we'll both be

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 available for questions

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 when we tested you Paul can you hear us Paul can you yes yes I can how's it going

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 we're gonna turn a demonstration over to you now ball okay cool let me see if I

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 can get do you want me to share the the slides or you have those that you're

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 showing we've done the slides it's just the demo so if you could just share the

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 okay yeah okay

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 all right so I think you can see that so I just to let you know I couldn't hear

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 earlier I can hear you now so I apologize I know generally what went

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 through on those slides but I don't know exactly what was said and maybe

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 questions that were asked but I'll just kind of go through what we're looking at

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 here with impact dashboard in the actual app so one of the outputs that you saw

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 was the summary report for the city of Denton so that's kind of the page that

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 we're looking at here we're in the software impact dashboard it's set up

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 where you can get different iterations or different scenarios for a particular

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 project so this is our project orange slash south wire and it this the one

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 that we're looking at is called scenario one the selected one here right now

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 again we're on our reports tab and we're on the kind of one page summary report

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 from the perspective of the city of dent this this project included aspects of an

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 existing company planning and expansion right now we're showing the results that

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 zero in or focus on just the expansion impact you have the ability to kind of

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 take the broader view to say what's the total impact of this company if we were

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 to include the expansion as well as the company's existing activity so kind of

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 that retained business but right now as we look at this we're noting 95 direct

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 jobs and that's we're kind of clarifying that here where we say 95 new jobs at

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 that $62,000 salary and we're clarifying the summary does not include the impact

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 from the company's current activity which includes 324 retained jobs as well

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 as some other property and so forth so everything we're looking at here as we

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 present this version of the report it's just on that expansion or the new

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 activity we're projecting the impact over the next 10 years that's just kind

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 of a variable that depending on the circumstances you can adjust but again

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 these blue boxes in the upper right hand corner are kind of capturing those

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 economic impacts as we think about impact dashboard there's the economic

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 impact which will drive the fiscal impact and then from that point you can

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 analyze different incentives so these blue boxes in the upper right the

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 economic impact with the 95 jobs 63 spinoff did this was information that was

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 on the slide go ahead yeah okay sure go ahead just in regard to the 90 plus new

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 jobs how many employees does that actually translate out to is that 95

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 full-time jobs or is it a series of part-time are these benefited jobs yes

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 it's 95 benefited jobs it is full-time jobs okay okay thank you thanks when we

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 don't have full-time we use to part-time for a full-time equivalent okay yeah

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 and it can that's a good point to clarify on a given project I would

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 anticipate in most of these situations like I think this is a manufacturer we're

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 probably going to be talking in terms of full-time positions and I don't know if

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 it comes up in the indent and but I know for some of our other clients if we're

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 looking at other types of development like a retail and restaurant and you're

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 kind of trying to run something like through here there are going to be a

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 higher number of part-time and so you can either reflect for example the head

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 count of jobs so if that's full-time then that that's truly the head count but

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 it would be reflected maybe in the average salary so this is kind of saying

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 that 95 and the average across with 95 would be $62,000 per year when you see

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 like a retailer a restaurant project that you put head count where the head

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 count includes a lot of part-time folks you might see an average salary that you

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 know maybe 17,000 or 20,000 or something and that just reflects the fact that

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 there's a lot of people making you know part-time wages there but in this one we

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 are talking about full-time folks at 95 again I apologize if I'm kind of

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 retreading some of the things that were mentioned in the slides the 95 direct

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 jobs will from our modeling is going to support an estimated 63.8 spin-off jobs

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 so spin-off we're just saving some characters there that includes the

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 indirect and induced impact so if we were to write that out it should really

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 say indirect and induced but we're lumping it into say just spin-off

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 indirect being jobs supported by suppliers for this business so the local

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 supply chain the induced representing the workers spending so when these 95

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 workers get paid their salary they're going to go re-spend some of that money

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 in the community and supporting restaurants grocery stores and all that

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 sort of thing so in total we're estimating the total employment impact

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 from the expansion to be about 159 jobs let's call it we're noting the average

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 salary just to kind of show the quality of jobs so to speak so the average

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 worker makes direct worker makes about 62 or almost 63,000 spin-off workers

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 make a little bit less across the average of all of the workers the 159

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 it's about still about 61 almost $61,000 per year the other note that we make

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 here is capital investment of almost 70 million dollars as we think of just the

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 new buildings and FFME investments as we go over to this graph here this is where

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 we capture that fiscal impact and it's almost easier to kind of take this in

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 chunks the first step that we're going to be doing is looking at the benefits

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 the cost and then boiling it down to the net benefit so the benefits really

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 represent those additional revenues that we're estimating for the city so in the

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 case of the city of Denton that includes some local sales taxes that are that the

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 city will collect different amounts of property taxes and then some other

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 revenues kind of related to utilities and some other things that's the benefit

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 part of this as we look at this graph here the dark blue bar is showing us

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 that benefit so as we kind of go across here you see this dark blue bar every

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 year we add up all of those dark blue bars that's this five point six five

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 point seven million in net benefit or excuse me in benefit the costs in this

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 case are really reflective of just what we think of as costs to the city so

221
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 we've got two of them in this case the cost of government service of kind of

222
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 municipal services so police fire EMS those sorts of things as you have a new

223
00:21:11,800 --> 00:21:15,920
 business coming in or I guess in this case an existing business expanding you

224
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 have the potential for an increased demand on city services you also have

225
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 the potential for workers filling those jobs that might relocate to the city and

226
00:21:25,680 --> 00:21:29,080
 so that would be some residential costs to provide services to those new

227
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 residents so that's kind of what we're reflecting here we're taking a look at in

228
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 the background this is information that we update kind of on an annual basis

229
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 we're looking at the city to try to understand from the general funds

230
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 perspective what are the types of services that the city provides and then

231
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 coming up with kind of a marginal cost for the city services to new businesses

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 or to new households and so that's the reflection of what we're capturing there

233
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 the other cost that's listed here for the city would be this cost of utility

234
00:21:59,320 --> 00:22:04,600
 services this is intended to represent city-owned utilities so if we're trying

235
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 to identify not only the you know the revenue that the city will collect from

236
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 the increase in this company using more electricity more water and more solid

237
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 waste and sewer services but also the fact that there's going to be a cost for

238
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 the city to provide those services so that's what we're reflecting there so

239
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 it's a lot of our clients you know you could kind of look at this and say well

240
00:22:27,280 --> 00:22:30,280
 there's city-owned utility revenue coming in and then there's city-owned

241
00:22:30,280 --> 00:22:35,120
 utility costs going out and so the net there this is a lot of flash but there

242
00:22:35,120 --> 00:22:39,400
 is a little bit of a net as we're capturing here and so that's what we're

243
00:22:39,400 --> 00:22:44,400
 seeing it when we see this 2.6 million in costs again going up here to just

244
00:22:44,400 --> 00:22:49,360
 focus on these first three little icons the benefits the cost and the net

245
00:22:49,360 --> 00:22:54,200
 benefits the cost would be these lighter blue bars that I'm hovering over now

246
00:22:54,200 --> 00:22:58,000
 there's kind of a second level to that so we'll talk about in a second so the

247
00:22:58,000 --> 00:23:02,040
 cost being adding up to about 2.6 million so just putting those two pieces

248
00:23:02,040 --> 00:23:05,960
 together we get a net benefit of about three million dollars over this 10-year

249
00:23:05,960 --> 00:23:10,440
 time period that sets us up to to kind of just say what's the value of this

250
00:23:10,440 --> 00:23:15,120
 project now in this case we have an incentive that we're modeling which in

251
00:23:15,120 --> 00:23:19,920
 this case happens to be just a property tax abatement in other instances if you

252
00:23:19,920 --> 00:23:24,840
 were to do a property tax abatement and a grant or maybe some other other

253
00:23:24,840 --> 00:23:27,880
 incentives you would see kind of different line items listed but in this

254
00:23:27,880 --> 00:23:31,520
 case it's just a property tax abatement and the value that we've estimated for

255
00:23:31,520 --> 00:23:36,520
 that property tax abatement to be is to be about 1.3 million dollars so we're

256
00:23:36,520 --> 00:23:40,080
 kind of taking a look at that here in this graph we're also reflecting it up

257
00:23:40,080 --> 00:23:44,240
 here so we see the 1.3 million in incentives and then we're backing that

258
00:23:44,240 --> 00:23:48,720
 out of that net benefit so we're taking our three million of net benefit and if

259
00:23:48,720 --> 00:23:54,560
 we were to give up those incentives tax abatement we get down to a 1.7 net

260
00:23:54,560 --> 00:23:59,520
 benefit less incentive and so graphically what that's doing here is

261
00:23:59,520 --> 00:24:05,600
 we're starting from our net benefit with the orange dot that we see each year and then we backed out that

262
00:24:05,600 --> 00:24:09,720
 incentive amount the abatement each year and we see that abatement amount in the

263
00:24:09,720 --> 00:24:15,360
 lightest blue here and so that brings us down to this kind of yellow diamond for

264
00:24:15,360 --> 00:24:19,720
 the net benefit less incentives each year so that's kind of this graph is a

265
00:24:19,720 --> 00:24:23,400
 lot when you're jumping straight to the end here where we have the you know all

266
00:24:23,400 --> 00:24:27,360
 of these different things calculated but that's that's where we're ending up now

267
00:24:27,360 --> 00:24:32,200
 as we think about the idea that this project is going to generate three

268
00:24:32,200 --> 00:24:37,080
 million dollars in benefit net benefits for the city and that will accrue to the

269
00:24:37,080 --> 00:24:40,680
 city over this ten-year period this orange line is giving us a sense of that

270
00:24:40,680 --> 00:24:45,160
 cumulative net benefit over ten years so by year ten we're stretching up there to

271
00:24:45,160 --> 00:24:50,520
 three million dollars now this tax abatement that we're considering in this

272
00:24:50,520 --> 00:24:55,840
 case is getting modeled for each year there's a certain amount of taxes

273
00:24:55,840 --> 00:24:59,840
 abated and so in year one we can see the value of the abatement is about

274
00:24:59,840 --> 00:25:04,680
 195,000 in this little box down here it's a little hard to see and then in

275
00:25:04,680 --> 00:25:07,840
 year two it's a hundred and eighty one thousand in year three it's a hundred and

276
00:25:07,840 --> 00:25:12,800
 sixty six and so on but across if we add up all of the incentive it's the 1.3

277
00:25:12,800 --> 00:25:16,800
 million that we're noting here we're also reflecting it here with this dash

278
00:25:16,800 --> 00:25:21,160
 reference line and what we're trying to consider here is where does that line

279
00:25:21,160 --> 00:25:25,520
 intersects and the cumulative net benefit and the total incentive and in

280
00:25:25,520 --> 00:25:29,480
 this case we were kind of marking it for us at two point nine years so that's

281
00:25:29,480 --> 00:25:34,000
 telling us that go ahead I want to interrupt just pause for a second in case

282
00:25:34,000 --> 00:25:42,600
 anybody has any questions or any further demonstration questions yes yeah this is

283
00:25:42,600 --> 00:25:49,280
 a you know very slick and full framework I wonder if two things one is is there

284
00:25:49,280 --> 00:25:54,440
 like a discount factor for what percent of the new jobs you assume won't result

285
00:25:54,440 --> 00:25:58,940
 in residency here you know I mean not everybody moves directly to debt and

286
00:25:58,940 --> 00:26:03,200
 right it could be saying or a fire bound or wherever you know outside so which

287
00:26:03,200 --> 00:26:09,840
 would affect both the cost of services you know and the tax revenue that's one

288
00:26:09,840 --> 00:26:15,800
 question that that's right yeah so I'm gonna jump around a little bit so if we

289
00:26:15,800 --> 00:26:19,180
 go back we're gonna be able to plug in when the jobs are created so we have

290
00:26:19,180 --> 00:26:25,820
 this 95 jobs it's actually 19 jobs in year 2 and 76 jobs in year 3 the next

291
00:26:25,820 --> 00:26:30,960
 question we have is what percent of those new direct workers will represent

292
00:26:30,960 --> 00:26:37,840
 a new household moving to the city and in this case we're using I'm guessing

293
00:26:37,840 --> 00:26:42,120
 this is our baseline default that we build in there for cases where you

294
00:26:42,120 --> 00:26:47,040
 don't just have more information so this is something that can be adjusted

295
00:26:47,040 --> 00:26:52,000
 depending on the circumstances but at a baseline we're plugging in an estimate

296
00:26:52,000 --> 00:26:56,560
 that it might be about nine percent of those 95 workers would represent new

297
00:26:56,560 --> 00:27:01,100
 households that means that most of the jobs are either being filled by existing

298
00:27:01,100 --> 00:27:06,760
 Denton residents or people who commute to the city of Denton to work there so they

299
00:27:06,760 --> 00:27:09,100
 don't necessarily live there but they live close enough and they'll just commute

300
00:27:09,100 --> 00:27:15,360
 to fill some of those 95 jobs so if we go to again I'm gonna jump around a

301
00:27:15,360 --> 00:27:20,760
 little bit here we have in our detailed report the the number of new residents

302
00:27:20,760 --> 00:27:24,880
 in the city of Denton sorry workers who will move to the city this first one

303
00:27:24,880 --> 00:27:29,520
 being the 8.5 we are capturing a few spin-off as well so in total we're

304
00:27:29,520 --> 00:27:33,840
 capturing out of the hundred and fifty eight total new jobs being created

305
00:27:33,840 --> 00:27:39,300
 about 14 worker households moving to the city and then as we assume that each

306
00:27:39,300 --> 00:27:43,800
 household might just might have you know maybe two and a half or 2.6 residents

307
00:27:43,800 --> 00:27:47,920
 per household that's going to drive a total population or total new residents

308
00:27:47,920 --> 00:27:54,240
 in the city 36 37 there that's an impressive level nuance built in that's

309
00:27:54,240 --> 00:28:00,480
 cool question was just whether you're you have any experience of and is there

310
00:28:00,480 --> 00:28:07,440
 any structure for you know tracking how much of this comes comes true you know

311
00:28:07,440 --> 00:28:11,920
 over time at least the parts not so much the some of them some of it would be

312
00:28:11,920 --> 00:28:15,280
 very hard to track right the new residents part but I mean the enterprise

313
00:28:15,280 --> 00:28:22,000
 specific you know tax revenue and so on is there any kind of you know tracking

314
00:28:22,000 --> 00:28:28,640
 over time to see if it bears out yeah right now I'm so it's come up in the

315
00:28:28,640 --> 00:28:34,400
 context of maybe a in another city where the the company didn't hit their goals

316
00:28:34,400 --> 00:28:37,720
 and they're in the position of a clock clawback and so then we need to go back

317
00:28:37,720 --> 00:28:42,160
 and say this is what was projected and expected and then this is what actually

318
00:28:42,160 --> 00:28:48,120
 happened and so we've done that sort of thing the the the thing that I would

319
00:28:48,120 --> 00:28:54,520
 suggest and typically when a when one of our clients is using the model for this

320
00:28:54,520 --> 00:28:58,240
 sort of thing there's usually if when I say this sort of thing when they're

321
00:28:58,240 --> 00:29:03,120
 sorry when they're using the model to do in it to estimate the impact on an

322
00:29:03,120 --> 00:29:06,840
 incentive or the rate of return on an incentive there's usually an agreement

323
00:29:06,840 --> 00:29:10,760
 and the agreement is going to dictate the company needs to invest whatever if

324
00:29:10,760 --> 00:29:14,760
 it's six seventy million dollars and they need to hire ninety five workers by

325
00:29:14,760 --> 00:29:18,400
 this point in time and those are usually the big things that are going to be

326
00:29:18,400 --> 00:29:23,960
 driving this in this case the other kind of element here is this idea that this

327
00:29:23,960 --> 00:29:27,760
 investment will come on to the tax rolls at a certain value and drive the

328
00:29:27,760 --> 00:29:31,920
 property tax so those would be the things to follow up on and I think a lot

329
00:29:31,920 --> 00:29:36,320
 of times depending on the incentive agreement and the type of incentive that

330
00:29:36,320 --> 00:29:41,360
 would be you know what you are checking in on with the you know the performance

331
00:29:41,360 --> 00:29:47,200
 of the projects of speaking those performance reports so we also have and

332
00:29:47,200 --> 00:29:51,080
 as I look at this one we also have a return on investment report or net

333
00:29:51,080 --> 00:29:54,320
 revenue report that tracks all that information and like he said everything's

334
00:29:54,320 --> 00:30:05,400
 in the contract the other thing that I'll point out if we step back on this

335
00:30:05,400 --> 00:30:11,080
 when I look at net benefits of three million I want to understand where is

336
00:30:11,080 --> 00:30:16,080
 that coming from what are we depending on to happen and so kind of a important

337
00:30:16,080 --> 00:30:20,480
 step of this is just trying to drill in and say okay well a lot of it a million

338
00:30:20,480 --> 00:30:24,760
 almost comes from real property and one point seven comes from FF&E so those are

339
00:30:24,760 --> 00:30:28,240
 kind of our major major moving things there's some back and forth with

340
00:30:28,240 --> 00:30:32,200
 utilities as we see here and there's some other calculations that we do around

341
00:30:32,200 --> 00:30:37,200
 franchise fees and you know other tax revenue that we estimate but the the

342
00:30:37,200 --> 00:30:41,720
 major thing that's driving that three million in this case is really the

343
00:30:41,720 --> 00:30:47,000
 property tax aspect of it so in that case I would ask myself you know you know

344
00:30:47,000 --> 00:30:51,020
 is our agreement kind of solid around well they have to invest this property

345
00:30:51,020 --> 00:31:03,080
 and do we feel good about those any other questions before I also talk very fast

346
00:31:03,080 --> 00:31:06,680
 right now and so I want to make sure that the chair are you okay do we want to

347
00:31:06,680 --> 00:31:11,040
 continue ask questions go through the are there any other questions not

348
00:31:11,040 --> 00:31:14,760
 specifically on this but I have a question to them before we leave this

349
00:31:14,760 --> 00:31:23,880
 door closed okay thanks yeah I think we had 15 minutes allocated for it we're

350
00:31:23,880 --> 00:31:29,920
 right at the 15 to 18 minute mark on it so a couple more minutes to wrap up is

351
00:31:29,920 --> 00:31:37,920
 that fair okay so just to kind of put a button on the incentive part we're

352
00:31:37,920 --> 00:31:43,920
 looking at that total 1.3 million incentive or in this case relative to

353
00:31:43,920 --> 00:31:48,160
 this cumulative net benefit we see it intersects here around year three and we

354
00:31:48,160 --> 00:31:52,620
 calculate that it'll take the city 2.9 years to collect enough in net benefits

355
00:31:52,620 --> 00:31:58,880
 to pay back or to cover that full 1.3 million dollar incentive we we put it in

356
00:31:58,880 --> 00:32:04,480
 this payback framework because it's easy to think about for an abatement it's

357
00:32:04,480 --> 00:32:07,760
 important to keep in mind that you're never actually out of pocket that full

358
00:32:07,760 --> 00:32:12,440
 amount up front you're you're as you see here kind of paying it out over time so

359
00:32:12,440 --> 00:32:18,520
 this is the concept of 2.9 years is just the idea that it'll take the city 2.9

360
00:32:18,520 --> 00:32:22,160
 years to pay the entire incentive but you're never it's not like you're out of

361
00:32:22,160 --> 00:32:25,760
 pocket the 1.3 million up front necessarily at least the way that this

362
00:32:25,760 --> 00:32:30,440
 model or this incentive is modeled the other calculation the kind of key

363
00:32:30,440 --> 00:32:36,600
 calculation here is this rate of return and we're just doing simply that the

364
00:32:36,600 --> 00:32:42,080
 annual average annual rate of return and so we're saying okay look we're gonna

365
00:32:42,080 --> 00:32:45,280
 get three million dollars over ten years that's about three hundred thousand

366
00:32:45,280 --> 00:32:50,120
 dollars a year on an investment of 1.3 million that's about twenty two twenty

367
00:32:50,120 --> 00:32:56,120
 three percent average annual rate of return this is more or less just kind of

368
00:32:56,120 --> 00:33:00,320
 a benchmark for you to think about it as maybe you compare the next project to

369
00:33:00,320 --> 00:33:04,600
 the last project and that sort of thing so this is helpful just to kind of

370
00:33:04,600 --> 00:33:08,840
 understand you know like is this a ten year ten percent rate of return or is it

371
00:33:08,840 --> 00:33:12,760
 a twenty five percent rate just helping you kind of conceptualize that as well

372
00:33:12,760 --> 00:33:17,880
 the per job incentive gets reflected here which in a lot of instances doesn't

373
00:33:17,880 --> 00:33:21,440
 necessarily make sense you're not you're not deciding this incentive based on a

374
00:33:21,440 --> 00:33:26,760
 job count because this is a tax abatement and it just kind of is what it

375
00:33:26,760 --> 00:33:32,160
 is in terms of this job calculation but but it's reflected there as well just

376
00:33:32,160 --> 00:33:36,920
 I'll click on one more screen for you on the public support tab this is where

377
00:33:36,920 --> 00:33:39,880
 you're actually able to model that incentive so in our case we had put in

378
00:33:39,880 --> 00:33:44,280
 fifty percent on the building and FF&E over the ten year period and so that was

379
00:33:44,280 --> 00:33:51,120
 how we were getting that abatement value of 1.3 million but presumably if there

380
00:33:51,120 --> 00:33:54,680
 was a question and we wanted to say well what if we did seventy five percent for

381
00:33:54,680 --> 00:34:00,080
 ten years we could go and adjust that sort of thing I'll leave it there if

382
00:34:00,080 --> 00:34:04,320
 there's any questions I think I mentioned the the ability to look at

383
00:34:04,320 --> 00:34:10,040
 this either just the expansion or to kind of also incorporate the existing

384
00:34:10,040 --> 00:34:14,840
 activity I'll click on that button real quick so we click total combined that's

385
00:34:14,840 --> 00:34:20,000
 going to give us so to speak give us the context of the company's existing

386
00:34:20,000 --> 00:34:25,040
 activity projected out over the next ten years as well so now when we look at our

387
00:34:25,040 --> 00:34:31,080
 direct employment we're showing 419 and that's reflective of the 95 new jobs and

388
00:34:31,080 --> 00:34:38,320
 the 324 retained jobs so again when you take that broader view the benefits and

389
00:34:38,320 --> 00:34:41,240
 ever all of this kind of looks a little bit different quite a bit different in

390
00:34:41,240 --> 00:34:48,840
 this case as we capture the ongoing benefits of the existing activity but in

391
00:34:48,840 --> 00:34:51,800
 most cases a lot of our clients are going to want to focus on just the

392
00:34:51,800 --> 00:34:55,800
 expansion because let's say that the incentive is just tied to providing the

393
00:34:55,800 --> 00:35:01,680
 you know the company to to do that to kind of incentivize the company to

394
00:35:01,680 --> 00:35:05,360
 expand as opposed to kind of you know compare it to the total value of the

395
00:35:05,360 --> 00:35:10,200
 company there are instances I think with some of our clients where maybe it's a

396
00:35:10,200 --> 00:35:14,120
 real retention type of project where it's all or nothing either they're gonna

397
00:35:14,120 --> 00:35:18,720
 add this manufacturing line here in our city or they're gonna go somewhere else

398
00:35:18,720 --> 00:35:22,680
 entirely and we're gonna lose the existing activity and so in those cases

399
00:35:22,680 --> 00:35:27,160
 it might be more reasonable to look at the total combined but in this case I

400
00:35:27,160 --> 00:35:29,800
 mean I think this is kind of a reasonable way to present it and it's

401
00:35:29,800 --> 00:35:33,440
 definitely between the two options this is a more conservative way to look at

402
00:35:33,440 --> 00:35:38,600
 it and it still shows a pretty quick payback period thank you for that

403
00:35:38,600 --> 00:35:44,680
 presentation any questions from the board that there's no vote required on

404
00:35:44,680 --> 00:35:49,200
 this this is for information only correct I think it's very good

405
00:35:49,200 --> 00:35:54,560
 presentation do we do the very same thing for a city entity on your aviation

406
00:35:54,560 --> 00:35:59,200
 representing on this board we're in the process of looking at fees as we go

407
00:35:59,200 --> 00:36:03,360
 forward to make sure the airport pays for itself and one of the arguments I've

408
00:36:03,360 --> 00:36:09,040
 had recently with them is they have never assessed all of the impact that

409
00:36:09,040 --> 00:36:13,640
 the airport brings this community we don't have a clue what property tax is

410
00:36:13,640 --> 00:36:18,240
 paid on the properties out the airport because it all goes to General Fund I'm

411
00:36:18,240 --> 00:36:22,080
 okay with that but when we have a really big project like 35 million dollar

412
00:36:22,080 --> 00:36:27,840
 runway we had to replace this year and this FAA pays 90% of our big ticket

413
00:36:27,840 --> 00:36:32,400
 items how it returned to the community but the city still has to come up with

414
00:36:32,400 --> 00:36:37,080
 three and a half million and those kind of projects our revenue has covered that

415
00:36:37,080 --> 00:36:42,920
 without considering some of the other things like we know that this company

416
00:36:42,920 --> 00:36:47,880
 here is here because we have an airport all these years ago that they can bring

417
00:36:47,880 --> 00:36:52,940
 people in from Mexico and visit and those kind of things the indirect

418
00:36:52,940 --> 00:36:57,720
 economic impact is also not measured for the City Council when they have a bill

419
00:36:57,720 --> 00:37:04,240
 come to them for lots of money to say okay not only are they paying cash but

420
00:37:04,240 --> 00:37:10,000
 in the future the economic benefit to this community is so large we're happy

421
00:37:10,000 --> 00:37:13,080
 to come up with a million or two million dollars out of the general fund to

422
00:37:13,080 --> 00:37:17,240
 support these kind of things when the airport needs money I don't think that's

423
00:37:17,240 --> 00:37:22,520
 been looked at seriously and I'm arguing now with the airport staff and it's

424
00:37:22,520 --> 00:37:26,640
 before the council so I'll be making a presentation there at their upcoming

425
00:37:26,640 --> 00:37:32,160
 workshop but I think that's an issue that I want to bring up here and until

426
00:37:32,160 --> 00:37:38,120
 this came up I didn't know how to get it on the agenda but I hope the city and I

427
00:37:38,120 --> 00:37:43,280
 don't know of another entity in the city that generates kind of return at the

428
00:37:43,280 --> 00:37:49,200
 airport does but I think we ought to use this very kind of thing to examine what

429
00:37:49,200 --> 00:38:00,680
 it is. We have used this model for other departments. One of the things that I like about using impact data source is that Paul works with us to buy customized services so within

430
00:38:00,680 --> 00:38:04,120
 municipal electric he's done a customized input output model for

431
00:38:04,120 --> 00:38:09,320
 construction workers because that was key to the project. He's also given step-by-step

432
00:38:09,320 --> 00:38:13,280
 instructions how to do modeling for development services when a large

433
00:38:13,280 --> 00:38:17,120
 housing development comes in. It doesn't exactly fit but he's helped us with that.

434
00:38:17,120 --> 00:38:21,800
 As far as the airport in the past not with this model but we've done sales tax

435
00:38:21,800 --> 00:38:26,320
 reports going through the council to see what the sales tax impact is of that and now I'll

436
00:38:26,320 --> 00:38:30,520
 move it to now that you know the departments to Paul if he has anything

437
00:38:30,520 --> 00:38:36,480
 else to add about the economic impact in case you didn't hear at the airport. Yeah

438
00:38:36,480 --> 00:38:40,560
 we we looked at it and you can probably do it I think what you're talking about

439
00:38:40,560 --> 00:38:45,080
 is kind of the all of the activity there at the airport I think you could do

440
00:38:45,080 --> 00:38:49,120
 something like that. We've had experience using the model to try to reflect you

441
00:38:49,120 --> 00:38:54,800
 know a business that's going to locate at the city's airport for example and a

442
00:38:54,800 --> 00:38:58,200
 lot of times the types of revenues that we see come through the model there will

443
00:38:58,200 --> 00:39:03,400
 be the company having to pay like lease payments for like either a building

444
00:39:03,400 --> 00:39:08,400
 that's owned by the city or hanger leases those sorts of revenues are new

445
00:39:08,400 --> 00:39:13,600
 things that you would see pop up on the list of benefits. The other thing would

446
00:39:13,600 --> 00:39:17,760
 be like fuel taxes or maybe fuel fees that are charged if the city's the

447
00:39:17,760 --> 00:39:21,460
 fixed-base operator there that getting revenue from there's going to be a

448
00:39:21,460 --> 00:39:25,720
 different set of revenues for example like the typical ones on a project like

449
00:39:25,720 --> 00:39:29,720
 this are sales taxes and property taxes maybe hotel taxes those kinds of things

450
00:39:29,720 --> 00:39:33,160
 but at the airport there's are there are some probably other revenues that might

451
00:39:33,160 --> 00:39:40,160
 come into play like fuel fees and just other charges that are specific to sites

452
00:39:40,160 --> 00:39:44,400
 on the airport and so those could be reflected as well either for an

453
00:39:44,400 --> 00:39:47,840
 individual project or maybe you know which we try to look at you know the

454
00:39:47,840 --> 00:39:52,600
 annual impact of all of the activity at the airport for example.

455
00:39:52,600 --> 00:40:01,400
 Is the lack of that process kept the airport from growing or expanding

456
00:40:01,400 --> 00:40:08,320
 because the City Council hasn't? Fortunately it's not because our request today the FAA

457
00:40:08,320 --> 00:40:12,320
 funds so much that when it comes to them they're almost embarrassed to turn us

458
00:40:12,320 --> 00:40:16,520
 down. So I guess I'm trying to I'm not just trying to reconcile what what's

459
00:40:16,520 --> 00:40:21,920
 missing from your being able to go there. And they're raising fees they're raising I mean

460
00:40:21,920 --> 00:40:27,640
 a hang of rents gone from $250 a month to $900 a month effective in the next few

461
00:40:27,640 --> 00:40:33,240
 months. That's pretty hard on general aviation. Now we're gonna have more

462
00:40:33,240 --> 00:40:40,720
 commercials because they write it off. But Joe Smith has a little trouble writing it off and the

463
00:40:40,720 --> 00:40:46,120
 reason we've grown is because general aviation has helped us grow.

464
00:40:46,120 --> 00:41:14,360
 I think that may be a good discussion for the second item here. Any other conversation? I just have a common question and I don't know that it pertains really to all but so how much of a factor is employee count to this model? And the reason I'm asking that is what if we have a business that needs to do a lot of expansion to stay competitive but isn't gonna

465
00:41:14,360 --> 00:41:20,420
 necessarily add new employees but it's a decision of keeping employees that we do

466
00:41:20,420 --> 00:41:26,240
 have or keeping 80% of those employees versus losing all of those employees. He

467
00:41:26,240 --> 00:41:30,520
 was demonstrating that with the total combined so if it was an all or nothing

468
00:41:30,520 --> 00:41:34,600
 when he toggles between the expansion only and the total combined that's when

469
00:41:34,600 --> 00:41:41,920
 you recapture that information. And yeah we have different projects sometimes like for

470
00:41:41,920 --> 00:41:47,000
 engine tech you're investing in human capital rather than actual capital so

471
00:41:47,000 --> 00:41:52,680
 there's a different concept and I'll let Paul speak to that. Yeah it's a little bit

472
00:41:52,680 --> 00:41:58,640
 of a judgment call I think if if your mandate or your goal in economic

473
00:41:58,640 --> 00:42:02,880
 development is to kind of make jobs that comes into the play to play with how

474
00:42:02,880 --> 00:42:07,000
 you'll evaluating kind of what rate of return and payback period you'll accept

475
00:42:07,000 --> 00:42:13,520
 for a particular project when you're trying to incentivize it. The model you

476
00:42:13,520 --> 00:42:18,320
 know as you think about you know putting different projects through here and like

477
00:42:18,320 --> 00:42:21,960
 let's say it was a company where they're going to invest a lot of taxable

478
00:42:21,960 --> 00:42:26,480
 party but they're not going to have a large head count well just based on the

479
00:42:26,480 --> 00:42:30,040
 local tax structure and that's something that's a little bit out of out of our

480
00:42:30,040 --> 00:42:33,280
 hands but based on the local tax structure you're you're gonna be driving

481
00:42:33,280 --> 00:42:38,000
 a good bit of property tax on a project that has a big capital investment and few

482
00:42:38,000 --> 00:42:45,760
 jobs. So that would that would show very favorable if it's just kind of a you

483
00:42:45,760 --> 00:42:52,640
 know light head count but there are times when you know we see this with some of

484
00:42:52,640 --> 00:42:57,160
 our clients that they're trying to get like a headquarters and it's a large

485
00:42:57,160 --> 00:43:01,480
 head count but relatively small capital investment maybe it's just some build

486
00:43:01,480 --> 00:43:05,040
 out because they're leasing tenants in a shop because they're leasing a building

487
00:43:05,040 --> 00:43:10,040
 and so there's not a big property tax impact from that but there is a high

488
00:43:10,040 --> 00:43:15,600
 number of jobs so you're gonna see a lower payback period or lower I should

489
00:43:15,600 --> 00:43:20,400
 say on a project like that just because it doesn't have kind of the average

490
00:43:20,400 --> 00:43:25,000
 amount of property per employee those kind of ratios that you would expect you

491
00:43:25,000 --> 00:43:30,760
 know you know in a typical business. So the model is going to reflect that but

492
00:43:30,760 --> 00:43:36,920
 typically higher capital investment and honestly higher taxable sales just based

493
00:43:36,920 --> 00:43:41,040
 on the local tax structure are gonna drive higher net benefits. So there's a

494
00:43:41,040 --> 00:43:45,760
 little bit of judgment that's needed to just kind of direct things in the way

495
00:43:45,760 --> 00:43:50,080
 that you want right. So if you the example that I give sometimes is you

496
00:43:50,080 --> 00:43:53,120
 know if you if you wanted to run a Chick-fil-A restaurant through here we

497
00:43:53,120 --> 00:43:57,640
 could do that and it would show tons of taxable sales lots of sales tax revenue

498
00:43:57,640 --> 00:44:01,800
 that'd be you know that'd be a good project so to speak from a position of

499
00:44:01,800 --> 00:44:05,280
 net benefits but you know do we take a step back and say are we gonna

500
00:44:05,280 --> 00:44:09,440
 incentivize a Chick-fil-A in that's not what we're trying to do here. So there is

501
00:44:09,440 --> 00:44:14,640
 that added layer of kind of you know directing the types of projects that

502
00:44:14,640 --> 00:44:18,440
 you're focused on which I think is kind of part of what Eric is already doing

503
00:44:18,440 --> 00:44:27,240
 there. So are you saying that number is in there when you toggle that? When he toggles between it like if you're talking in all or nothing. So this would be the

504
00:44:27,240 --> 00:44:32,520
 facility and the expansion when you toggles to that combined is that. So if they

505
00:44:32,520 --> 00:44:36,240
 were going to leave all together without the incentive that's what that would

506
00:44:36,240 --> 00:44:45,560
 capture. Yeah. So they leave all together it's what? And this is also set up for

507
00:44:45,560 --> 00:44:49,560
 contractions that you say FEMA is going to leave and we want to see what that

508
00:44:49,560 --> 00:44:53,680
 impact would be. So what is that 11 million net benefit versus the one

509
00:44:53,680 --> 00:45:00,040
 million on the other? What's the 11 million show? Yeah let me flip over to

510
00:45:00,040 --> 00:45:08,940
 this other table here. So the this table is going to show us that same

511
00:45:08,940 --> 00:45:14,480
 information the benefits, costs, net benefits, net benefits less than cents and but it's

512
00:45:14,480 --> 00:45:18,200
 putting it in columns in terms of what the impact that is associated with the

513
00:45:18,200 --> 00:45:22,480
 current activity versus the expansion and this is all projected out over the

514
00:45:22,480 --> 00:45:26,880
 next 10 years. So if we assume the current level of activity continues on

515
00:45:26,880 --> 00:45:31,360
 for 10 years this is the total kind of sales tax, property tax, different types

516
00:45:31,360 --> 00:45:35,160
 of revenues that it generates. If we just want to look at the expansion which is

517
00:45:35,160 --> 00:45:37,720
 kind of where we started where it's going to generate 3 million in net

518
00:45:37,720 --> 00:45:42,240
 benefits and then after we back out these incentives 1.7 this is just the

519
00:45:42,240 --> 00:45:47,560
 expansion over that 10 year period. And so the total column is kind of saying

520
00:45:47,560 --> 00:45:53,560
 okay look the company sticks around that's going to drive 8.8 million of net

521
00:45:53,560 --> 00:46:00,560
 benefits for the city if they do this expansion. I don't understand that, that wasn't really the question but we're fine we can move forward.

522
00:46:00,560 --> 00:46:14,160
 In this case zero jobs. My question is is a little different because from an

523
00:46:14,160 --> 00:46:19,680
 elected standpoint right I trust staff to crunch the numbers that sort of thing

524
00:46:19,680 --> 00:46:25,240
 right that that y'all do very well. My question would be adding to your

525
00:46:25,240 --> 00:46:29,880
 visibility. So my question is does a tool do that and and to put that in

526
00:46:29,880 --> 00:46:37,120
 perspective what I'm thinking is like a Yelp review meets Carfax report for

527
00:46:37,120 --> 00:46:41,720
 businesses right. Do you have a historical look at businesses either

528
00:46:41,720 --> 00:46:44,920
 they performed under form you use the example of one business that under

529
00:46:44,920 --> 00:46:49,720
 perform do you archive that information to give us visibility because in an

530
00:46:49,720 --> 00:46:53,640
 environment we're in now where you may have a startup that can present well in

531
00:46:53,640 --> 00:46:58,120
 paper you know and and all those things but then having business records or

532
00:46:58,120 --> 00:47:04,160
 archives or that sort of thing that then speaks to if they can because if the

533
00:47:04,160 --> 00:47:07,560
 tool crunches the numbers I give you great numbers right I know the answers

534
00:47:07,560 --> 00:47:12,840
 producing those producing those results is the hard part so and all they've done

535
00:47:12,840 --> 00:47:18,120
 it in other cities productive presumably do you crawl networks do you leverage

536
00:47:18,120 --> 00:47:23,400
 that information to understand kind of a scoring system for these businesses to

537
00:47:23,400 --> 00:47:28,520
 the viability of them that sort of thing. Are you asking that specific business or

538
00:47:28,520 --> 00:47:33,000
 that industry? That business so business comes to us and says hey we have one

539
00:47:33,000 --> 00:47:36,760
 million locations we're gonna bring you one million dollars we're gonna hire one

540
00:47:36,760 --> 00:47:42,600
 million people immediately but that same business failed to do so in eight other

541
00:47:42,600 --> 00:47:46,120
 cities or they submitted different numbers to different cities that that

542
00:47:46,120 --> 00:47:52,840
 sort of thing does is there a fact check component or a historical crawl? I don't

543
00:47:52,840 --> 00:47:57,280
 think for impact data source and Paul you can I'll let you chime in but we are

544
00:47:57,280 --> 00:48:03,040
 working on our CRM system you like you working track incentives that whenever

545
00:48:03,040 --> 00:48:06,880
 what engine type for example we'll be able to track what we started their apple

546
00:48:06,880 --> 00:48:11,040
 worm fact is that and track it over a 10 year period so we can measure how they

547
00:48:11,040 --> 00:48:15,000
 actually met those criteria and Erica does as far as our compliance every year

548
00:48:15,000 --> 00:48:20,040
 as well but we could also include sales tax dollars and other. We actually include

549
00:48:20,040 --> 00:48:24,240
 sales tax in our net revenue reports so we do track that information we also

550
00:48:24,240 --> 00:48:28,200
 have reference solutions we have a free membership through the library where it

551
00:48:28,200 --> 00:48:32,280
 gives business credit rating so when we do retention visits you can get a summary

552
00:48:32,280 --> 00:48:36,920
 from them a one page summary gives their competitors gives their information

553
00:48:36,920 --> 00:48:40,760
 their credit rating everything you need when you go to that visit so that's key

554
00:48:40,760 --> 00:48:45,880
 in having that information in hand. We can look at that as well like we can see

555
00:48:45,880 --> 00:48:50,920
 other because it's a US database so we can compare with other cities you know

556
00:48:50,920 --> 00:48:54,160
 that are comparable like a Waco because they're college down we can look at a

557
00:48:54,160 --> 00:48:58,680
 business in another city and see as well and you can immediately get their

558
00:48:58,680 --> 00:49:02,840
 headquarters too when you click on one button on the reference solutions. Yeah so that

559
00:49:02,840 --> 00:49:07,040
 would be critical to me just to understand the numbers present right

560
00:49:07,040 --> 00:49:11,960
 because if you present these it presents well that doesn't mean it's there's you

561
00:49:11,960 --> 00:49:15,160
 know it's good to go so I I would think those two need to work in concert

562
00:49:15,160 --> 00:49:19,800
 somehow to say before we get to this phase that other phase to kind of

563
00:49:19,800 --> 00:49:25,080
 process the numbers understand those and then before we go if we were to proceed

564
00:49:25,080 --> 00:49:30,720
 plugging the numbers etc. We looked at other models too. We looked at Remian and Plan and this one is more

565
00:49:30,720 --> 00:49:35,480
 conservative in the ripple effects. You're right to your point it's underwriting the

566
00:49:35,480 --> 00:49:38,480
 business and what they've done in other cities to make sure what we're

567
00:49:38,480 --> 00:49:42,600
 forecasting if they have ever done an incentive did they meet the incentive in other cities.

568
00:49:42,600 --> 00:49:48,800
 Yes yeah because that that that beef place the guy showed up the next day had

569
00:49:48,800 --> 00:49:58,400
 business cards everything said good to go right. It was an industry too even if you Google it you're just going to see farmland because they were raising cattle

570
00:49:58,400 --> 00:50:03,560
 yeah so that one was very hard to check. Sure sure but you know just what have we

571
00:50:03,560 --> 00:50:07,520
 learned from that and how do we then I know we've done a lot and shirred up a lot

572
00:50:07,520 --> 00:50:11,760
 and we didn't lose anything on that deal right but but but that's just making

573
00:50:11,760 --> 00:50:15,760
 sure that continues to be the case. That's beyond the business too or that

574
00:50:15,760 --> 00:50:19,840
 person or that entity it could be the industry as well so I think it goes back to

575
00:50:19,840 --> 00:50:25,040
 underwriting the staff. You're not going to be able to pull that on whatever you're

576
00:50:25,040 --> 00:50:28,280
 gonna have to actually do research and call and try to find that out and that's

577
00:50:28,280 --> 00:50:35,280
 gonna be where you're going to have to do that. Yeah just a little bit more about that it's just yeah right now we're in a

578
00:50:35,280 --> 00:50:41,080
 we're in a situation where I mean I can watch a bird on YouTube talk to me and

579
00:50:41,080 --> 00:50:46,800
 it looks really real right I mean technology is such that you know they

580
00:50:46,800 --> 00:50:50,400
 those that are doing bad things have stepped up their game there's and there's

581
00:50:50,400 --> 00:50:54,200
 a reason because they're successful right and so what are we doing to continue to

582
00:50:54,200 --> 00:50:57,680
 stay not ahead of that curve you're never gonna get ahead of it I ask the

583
00:50:57,680 --> 00:51:03,440
 cable companies but you at least you at least try to keep up. I look at the valuation in other

584
00:51:03,440 --> 00:51:07,960
 counties or parishes if you're looking at this to see if what they're telling me looks

585
00:51:07,960 --> 00:51:13,800
 right. Yeah. And do we utilize this on Google too? We usually try to research and then make sure that they're

586
00:51:13,800 --> 00:51:19,840
 legitimate. We don't want to be embarrassed and give incentives to somebody that's not legit. Sure all right good

587
00:51:19,840 --> 00:51:25,560
 conversation we appreciate you timing in with us all. We're gonna close the

588
00:51:25,560 --> 00:51:30,580
 conversation and certainly can come back I'm sure that we're gonna arrange this as

589
00:51:30,580 --> 00:51:36,680
 well. No vote needed. Thank you. I think we maybe just did these in opposite

590
00:51:36,680 --> 00:51:47,160
 sequence, is that right? So that was 91 and we're going to 90 now. That was 90 and we're going to 91. All right. Thank you.

591
00:51:47,160 --> 00:52:06,080
 Perfect. All right so in December actually early last year we discussed

592
00:52:06,080 --> 00:52:09,480
 completing an incentive study and so we now change the name to competitiveness

593
00:52:09,480 --> 00:52:14,080
 study and so this session we want to get your feedback I know that's something we

594
00:52:14,080 --> 00:52:17,760
 also discussed in this December meeting we want to ensure before we release this

595
00:52:17,760 --> 00:52:22,720
 RP to find consultants to complete the study that we are covering all basis and

596
00:52:22,720 --> 00:52:30,600
 so a brief overview and then we'll revert to getting your feedback. The objective

597
00:52:30,600 --> 00:52:33,840
 of the study is to evaluate Denton's competitiveness based on top-site

598
00:52:33,840 --> 00:52:38,160
 selection criteria considerations and provide recommendations to staff and the

599
00:52:38,160 --> 00:52:41,880
 board on areas of improvements and opportunities and so right now we have a

600
00:52:41,880 --> 00:52:46,200
 current deadline to submit for the consultants to submit the RP proposals

601
00:52:46,200 --> 00:52:50,880
 on February 28 2024 and so as soon as we get your feedback we'll release it next

602
00:52:50,880 --> 00:52:55,840
 Monday. I'm gonna skip that slide real quick. There are three deliverables that

603
00:52:55,840 --> 00:52:59,760
 we're asking for and the number one is city comparisons. We're asking the

604
00:52:59,760 --> 00:53:03,880
 consultant to collect and compare data based on the criteria section from cities

605
00:53:03,880 --> 00:53:08,360
 in the Dallas/Port Worth region including Denton, Fort Worth, Dallas, McKinney,

606
00:53:08,360 --> 00:53:12,200
 Fort Warney and surrounding counties as well as cities in other parts of Texas

607
00:53:12,200 --> 00:53:18,800
 and the US that are comparable to our size or population, attributes, geography,

608
00:53:18,800 --> 00:53:22,920
 demographics and other relevant factors to determine successes in recruitment of

609
00:53:22,920 --> 00:53:27,800
 businesses and creating new jobs. The second deliverable is evaluation of

610
00:53:27,800 --> 00:53:32,280
 existing incentives and ROI so analysis of existing incentive policies to

611
00:53:32,280 --> 00:53:36,560
 ensure competitiveness and evaluation of existing incentive agreements and short

612
00:53:36,560 --> 00:53:41,800
 and long-term ROI for the city's general fund. Evaluation of commercial first

613
00:53:41,800 --> 00:53:45,640
 residential land within the city limits and tax revenue generated per acre or

614
00:53:45,640 --> 00:53:50,240
 other metrics compared to other cities and the reason being is multiple state

615
00:53:50,240 --> 00:53:53,600
 and county government entities on land within the city limits therefore averting

616
00:53:53,600 --> 00:53:58,040
 Avalorum taxes collected for the city. And consideration of other development

617
00:53:58,040 --> 00:54:03,080
 limitations including existing zoning or other factors. The third deliverable is

618
00:54:03,080 --> 00:54:07,000
 recommendations and so the consultant will provide recommendations for

619
00:54:07,000 --> 00:54:10,520
 improving all aspects of economic development practices, policies,

620
00:54:10,520 --> 00:54:14,040
 developer environment and incentive structures in the city including the

621
00:54:14,040 --> 00:54:18,000
 implementation of new facilities and infrastructure improvements if relevant

622
00:54:18,000 --> 00:54:22,640
 and identify top trends impacting the facility location decision-making process

623
00:54:22,640 --> 00:54:28,000
 in Texas, US and nation. So I'm gonna go back to this slide. Deliverable number one

624
00:54:28,000 --> 00:54:32,880
 city comparisons, this is where I need your help. So these are their type, site

625
00:54:32,880 --> 00:54:37,960
 selection criteria that we're asking the consultants to compare us to or evaluate

626
00:54:37,960 --> 00:54:41,880
 and so number one is workforce labor availability and that's the average

627
00:54:41,880 --> 00:54:46,480
 wage comparisons, cost of living for employees. Number two availability of

628
00:54:46,480 --> 00:54:50,080
 development-ready sites. What do we currently have available in terms of land

629
00:54:50,080 --> 00:54:54,080
 with ready infrastructure and existing building availability. The cost of doing

630
00:54:54,080 --> 00:54:58,000
 business, how do we compare to other cities. That's local property tax and

631
00:54:58,000 --> 00:55:01,800
 sales tax rates, development permit and impact fees, development timelines and

632
00:55:01,800 --> 00:55:07,000
 other related costs. Incentive evaluation, that's comparison of our current

633
00:55:07,000 --> 00:55:10,600
 incentives and funding mechanisms to other cities and economic development

634
00:55:10,600 --> 00:55:15,600
 policies of top performing cities. So why do Fort Worth have a better funding

635
00:55:15,600 --> 00:55:20,960
 incentives for or funding pools for incentives? Yes, right and so that's

636
00:55:20,960 --> 00:55:24,920
 something that they're gonna identify how we can improve and then fiscal and

637
00:55:24,920 --> 00:55:28,880
 economic impacts of top incentivized projects awarded to comparable cities

638
00:55:28,880 --> 00:55:33,280
 including what not limited to revenue recovery timelines, new revenue gains, new

639
00:55:33,280 --> 00:55:37,480
 job gains, tax base diversification and other relevant factors. Of course

640
00:55:37,480 --> 00:55:42,520
 utilities is very important when companies are looking to relocate so

641
00:55:42,520 --> 00:55:45,520
 we're gonna look at utility rate comparisons and access infrastructure and

642
00:55:45,520 --> 00:55:49,960
 number six transportation supply chain risk mitigation and number seven

643
00:55:49,960 --> 00:55:55,840
 industrial and office market outlook. So on your table you have a draft of the

644
00:55:55,840 --> 00:56:02,200
 RFQ and if you wanted to turn to page two please there are additional

645
00:56:02,200 --> 00:56:06,000
 considerations on there which we will either eliminate today or keep depending

646
00:56:06,000 --> 00:56:09,160
 on your feedback. I already heard Rick that we need to add airport development

647
00:56:09,160 --> 00:56:16,080
 policies so if you look through seven through 16 there's other considerations

648
00:56:16,080 --> 00:56:20,760
 that we could add that's political elections, project financing, cost of

649
00:56:20,760 --> 00:56:26,760
 capital, climate change, environment and sustainability, geopolitical risk, federal

650
00:56:26,760 --> 00:56:31,800
 and state legislation and policy, public opinion regarding projects, diversity, equity,

651
00:56:31,800 --> 00:56:37,640
 inclusion, quality of placemaking or other factors. I will pass this to you are

652
00:56:37,640 --> 00:56:40,640
 you okay? Everything listed in bold is something that we would definitely

653
00:56:40,640 --> 00:56:45,800
 include in the RFQ. Is there anything else that we'd like to consider maybe

654
00:56:45,800 --> 00:56:53,320
 that we have missed? Yes Councilman Meltzer. Well actually prior question is are we

655
00:56:53,320 --> 00:57:01,160
 also asking you know in the RFQ for the provider to to give us information on

656
00:57:01,160 --> 00:57:06,120
 what the top factors are to impact site selection or refill. If you know that we

657
00:57:06,120 --> 00:57:11,840
 just want to do the evaluations. We are it'll depend on how they evaluate top

658
00:57:11,840 --> 00:57:15,240
 site selection criteria so I believe we pulled this from the site selection

659
00:57:15,240 --> 00:57:18,880
 guilds their report from last year what their top considerations were but on

660
00:57:18,880 --> 00:57:22,160
 deliverable number three and we're listening then we're asking them to list

661
00:57:22,160 --> 00:57:29,800
 trends that they see in the site selection world. Second of three questions

662
00:57:29,800 --> 00:57:36,080
 what does quality of placemaking mean? It could be order redevelopment standards

663
00:57:36,080 --> 00:57:41,000
 are we is this a great place to live? Are companies are we a competitive place

664
00:57:41,000 --> 00:57:45,320
 where companies want to really relocate their company their employees here

665
00:57:45,320 --> 00:57:52,560
 versus Frisco or Fort Worth or Arlington? Okay so not knowing exactly what that meant

666
00:57:52,560 --> 00:57:58,760
 it sounds like it might mean what I was saying. No I would think quality of life

667
00:57:58,760 --> 00:58:04,920
 factors maybe that means the same thing and and it's going to be different you

668
00:58:04,920 --> 00:58:10,880
 know different definitions of what quality of life but I know historically

669
00:58:10,880 --> 00:58:19,320
 where the CEO wants to live has an out-size effect on the location you know

670
00:58:19,320 --> 00:58:26,320
 may well be due to personal factors or just general quality of life offered by that location.

671
00:58:26,320 --> 00:58:34,000
 We'll add quality of life factors CEO housing availability. I use the CEO as

672
00:58:34,000 --> 00:58:38,600
 a way to illustrate quality of life factors matter.

673
00:58:38,600 --> 00:58:46,080
 Couple of things I would think about as far as I wouldn't necessarily compare

674
00:58:46,080 --> 00:58:51,440
 just to cities that are our size I would compare to cities that we compete with.

675
00:58:51,440 --> 00:58:56,680
 Northlake is a much smaller city but we compete with them against industrial

676
00:58:56,680 --> 00:59:01,680
 users all the time. So Fort Worth obviously the Alliance Corridor Alliance

677
00:59:01,680 --> 00:59:06,880
 everything around the Alliance I would pick who are we competing with for

678
00:59:06,880 --> 00:59:11,440
 Frisco's not on here. I know there's been a few businesses we've lost to Frisco

679
00:59:11,440 --> 00:59:17,800
 because they pay per employee right that you move into Frisco. South of Dallas you

680
00:59:17,800 --> 00:59:20,680
 know with all the industrial down there I can't remember the name of the town

681
00:59:20,680 --> 00:59:27,200
 but for industrial we compete with those guys all the time.

682
00:59:27,200 --> 00:59:32,600
 And it's just I can't remember and then of course around the airport we're

683
00:59:32,600 --> 00:59:37,940
 competing for businesses around the airport back to how can we you know what

684
00:59:37,940 --> 00:59:42,880
 improvements do we need at our airport to be able to compete with DFWs. We need a

685
00:59:42,880 --> 00:59:48,800
 distributions industrial building that has runway access you know is that

686
00:59:48,800 --> 00:59:53,080
 something we need because we have the whole west side of the airport to be

687
00:59:53,080 --> 00:59:59,640
 able to do those. You're not going to get that. Yeah I'm just well you know we can't land those size planes well. No because the FAA isn't going to fund them.

688
00:59:59,640 --> 01:00:09,320
 Yeah well maybe privately though I may go build that building right. Oh the building? Yeah the building is what I'm talking about. The runway is about all we're gonna get.

689
01:00:09,320 --> 01:00:15,880
 Yeah so anyway there's different things that we could do. Who is our

690
01:00:15,880 --> 01:00:21,160
 competitors? The other thing I would say is we really need to look at is what

691
01:00:21,160 --> 01:00:27,760
 land which you mentioned in here in infrastructure but if if we have a 300

692
01:00:27,760 --> 01:00:32,800
 acre parcel which I currently have that we're working on developing is the

693
01:00:32,800 --> 01:00:39,160
 sewer capacity is the water capacity enough to quickly go develop that. And

694
01:00:39,160 --> 01:00:46,320
 the third thing I would say is not just looking at what our city reports say our

695
01:00:46,320 --> 01:00:51,320
 timeline is to get a preliminary a final flat a building ready to go. What's the

696
01:00:51,320 --> 01:00:55,400
 actual timelines and you know we're serving on a board right now that we're

697
01:00:55,400 --> 01:01:00,880
 looking at all those things but look at say okay how long does it really take us

698
01:01:00,880 --> 01:01:06,400
 from the time somebody has a pre-app to the time they can turn dirt and not not

699
01:01:06,400 --> 01:01:10,960
 what the flowchart says. Or the time they finally walk away. Yeah because that's I

700
01:01:10,960 --> 01:01:17,840
 know several. And so I think those those things talking with businesses are the

701
01:01:17,840 --> 01:01:24,120
 major things right. They don't plan 24 months to get a building permit you know

702
01:01:24,120 --> 01:01:28,800
 and you know especially raw land if they're willing to build a building you

703
01:01:28,800 --> 01:01:33,400
 know there's you go through all the processes. So I think those are three

704
01:01:33,400 --> 01:01:37,520
 things that I think are really important. What about development fees? Do you think that we're

705
01:01:37,520 --> 01:01:41,160
 competitive in that nature? I think that's definitely a thing we have to look at is our

706
01:01:41,160 --> 01:01:45,920
 impact fees which is a hot topic right now but we have to look at that and go

707
01:01:45,920 --> 01:01:51,600
 what's the cost to get a permit in the city. And how does that compare?

708
01:01:51,600 --> 01:01:57,080
 Again I don't know that it's I don't think our mindset can be comparable size

709
01:01:57,080 --> 01:02:02,920
 cities it's our competitors which may not be our size.

710
01:02:07,920 --> 01:02:17,120
 15 years. I don't want to be negative about this whole process but I've been

711
01:02:17,120 --> 01:02:22,400
 a den for 30 years in developing chamber. I can I don't know if I can count on one

712
01:02:22,400 --> 01:02:28,520
 hand. It's a number of times we've done this. The last one we did was my I guess

713
01:02:28,520 --> 01:02:33,400
 I just joined this board. You probably have it in your file. Was it six

714
01:02:33,400 --> 01:02:38,880
 years ago? Seven years ago? I think so. I mean it was a very comprehensive I don't

715
01:02:38,880 --> 01:02:42,520
 know what it cost the city. You know they came up here and interviewed business

716
01:02:42,520 --> 01:02:52,640
 people and they came back with a massive suggestion. At the end of the day as Lee

717
01:02:52,640 --> 01:02:58,520
 said every city almost every city in the Dallas Fort Worth area that we compete

718
01:02:58,520 --> 01:03:03,560
 with big small medium. We don't compete with from an economic development

719
01:03:03,560 --> 01:03:06,520
 standpoint because they had the sales tax they had the economic development

720
01:03:06,520 --> 01:03:13,520
 tax. We are so underfunded compared to our competition that this almost seems

721
01:03:13,520 --> 01:03:18,600
 like a moot point to me. We've done it so many times the results are always the

722
01:03:18,600 --> 01:03:24,240
 same and we never do anything about it. I don't know what these costs the city to

723
01:03:24,240 --> 01:03:31,320
 do. You know it's our revenue ability. It's our competitive revenue. It's the

724
01:03:31,320 --> 01:03:36,160
 process that the city goes through for permitting and getting deals done. We

725
01:03:36,160 --> 01:03:40,440
 have probably one of the worst reputations in Texas for that process

726
01:03:40,440 --> 01:03:45,620
 for people to come in and build stuff in our city. That's been that's been the

727
01:03:45,620 --> 01:03:51,520
 same thing for 20 or 30 years. So I guess this has to be done for five or six or

728
01:03:51,520 --> 01:03:57,040
 seven years but it seems like it's it's like the definition of insanity you know

729
01:03:57,040 --> 01:04:00,920
 when you're doing the same same thing over and over again and inspecting

730
01:04:00,920 --> 01:04:08,440
 different results. To me that is exactly what this process is.

731
01:04:08,440 --> 01:04:15,280
 As I walked out the door as a member of this board and someone who's been you

732
01:04:15,280 --> 01:04:20,960
 know who's had kind of a front row seat to this process five six seven times

733
01:04:20,960 --> 01:04:25,720
 throughout the last 30 years. Maybe some things have changed but for the most

734
01:04:25,720 --> 01:04:31,880
 part it hasn't changed. Nothing's changed. Do you feel like the specific to the permitting

735
01:04:31,880 --> 01:04:39,160
 because that comes up with most anyone trying to do work either new or extensive?

736
01:04:39,160 --> 01:04:48,500
 You talk to developers. You talk to developers coming in from outside the city. Is it the policy side of permitting or is it the

737
01:04:48,500 --> 01:04:54,080
 resources that we have to actually move the permitting along?

738
01:04:54,080 --> 01:05:00,360
 To speak to that a little bit with Scott McDonald being in his position now I

739
01:05:00,360 --> 01:05:04,400
 think very highly of him and he's working very hard to try to make some

740
01:05:04,400 --> 01:05:09,440
 of those changes to get there and it's probably the first time since I've been

741
01:05:09,440 --> 01:05:14,600
 doing business here for 20 years that I feel like the needle can really move and

742
01:05:14,600 --> 01:05:19,520
 I think we got the right guy in that position to look at that and I think the

743
01:05:19,520 --> 01:05:25,040
 other thing to your point on this you're hundred percent right on we've done this

744
01:05:25,040 --> 01:05:30,040
 and done this and done this. I think we have to go to City Council and when City

745
01:05:30,040 --> 01:05:34,960
 Council or whoever has to final approve this I think we need to say hey are we

746
01:05:34,960 --> 01:05:41,120
 all on board to making some changes because Tony's right there's no reason

747
01:05:41,120 --> 01:05:45,560
 to go spend this is not gonna be cheap this is gonna be very expensive and I

748
01:05:45,560 --> 01:05:50,520
 just think I would like to see this presented to council and say hey guys if

749
01:05:50,520 --> 01:05:54,680
 we get this report back is this something we're interested in looking at

750
01:05:54,680 --> 01:05:58,400
 if councils view overall is like yeah I think we're kind of where we want to be

751
01:05:58,400 --> 01:06:02,920
 on city incentives then there's no reason to spend the money if council

752
01:06:02,920 --> 01:06:08,560
 goes hey yeah we're on board we want to see and we're willing to make action on

753
01:06:08,560 --> 01:06:13,200
 these changes then let's do it but let's not let's not waste our time or money if

754
01:06:13,200 --> 01:06:19,440
 we don't have support of our leaders. City Council just say yeah we're open to

755
01:06:19,440 --> 01:06:23,360
 that from a political standpoint and then we get we spend the money good and

756
01:06:23,360 --> 01:06:33,720
 they're not gonna change their mind. Well then we get them reelected. I was I was I was the treasurer in 2000 the last time I guess the only time I know of that the

757
01:06:33,720 --> 01:06:39,160
 economic development sales tax was we spent a lot of time and money as a

758
01:06:39,160 --> 01:06:44,160
 business community to get that on a ballot if you remember if you were here

759
01:06:44,160 --> 01:06:49,920
 Bill Patterson was chairman of that committee I was I was a treasurer and it

760
01:06:49,920 --> 01:06:56,000
 was destroyed by the voter I mean it was winning close when we voted for that and

761
01:06:56,000 --> 01:07:00,440
 for whatever reason whether it was the political climate whether it was the

762
01:07:00,440 --> 01:07:07,120
 City Council at the time did not support it but this this community said you know

763
01:07:07,120 --> 01:07:11,600
 a very effective no to that they didn't want that development here they didn't

764
01:07:11,600 --> 01:07:15,880
 want other people coming in to our community helping pay for that which is

765
01:07:15,880 --> 01:07:23,680
 ludicrous man and so we sit back for the last 25 years and we watched everything

766
01:07:23,680 --> 01:07:31,000
 around us grow Flower Mountain, Lewisville, McKinney, Crisco, Sanger you know all

767
01:07:31,000 --> 01:07:36,680
 these communities that have this this ability to raise funds to compete and

768
01:07:36,680 --> 01:07:42,600
 and we're just sitting here in this little bubble and we were playing with

769
01:07:42,600 --> 01:07:48,400
 you know with with almost play money now you know we do have certain avenues for

770
01:07:48,400 --> 01:07:54,280
 incentives but it's so far from what our competition is doing and and I'm likely

771
01:07:54,280 --> 01:07:59,280
 if the City Council is going to approve spending this money which they've done

772
01:07:59,280 --> 01:08:04,680
 five or six times over the last 20 years and the results always come back and tell

773
01:08:04,680 --> 01:08:10,080
 us what our problem is and they're not going to do anything about it it seemed

774
01:08:10,080 --> 01:08:17,400
 like as a taxpayer we're just throwing money out the door so that's all

775
01:08:17,400 --> 01:08:22,080
 the proposal here I believe this is not for us to vote on to give recommendation

776
01:08:22,080 --> 01:08:28,820
 to from a board standpoint is the recommendation almost to reverse

777
01:08:28,820 --> 01:08:34,420
 engineering understand that there will be an acceptance and an action taken by

778
01:08:34,420 --> 01:08:41,120
 the recommendations before we make recommendations to these additions that

779
01:08:41,120 --> 01:08:45,680
 Britain is asking for I would like to say listen RFP did that right so we're

780
01:08:45,680 --> 01:08:49,920
 not wasting council's time so respectful that and take that to council and say

781
01:08:49,920 --> 01:08:54,560
 this is what we're about to do and then get council's feedback to say you know

782
01:08:54,560 --> 01:09:01,320
 we support this and we're going to take action you know consider action for sure

783
01:09:01,320 --> 01:09:06,920
 on what the results of the report are one is going to be the train right we

784
01:09:06,920 --> 01:09:12,000
 all everybody knows where I stand on this thing and we're spending our EDC

785
01:09:12,000 --> 01:09:18,160
 dollars there and so I think that needs to be a topic and be able to say okay are

786
01:09:18,160 --> 01:09:22,080
 these we pretty much know what recommendations this report are going to

787
01:09:22,080 --> 01:09:29,160
 be I mean if you remember that that study we did five six years ago yeah no

788
01:09:29,160 --> 01:09:32,720
 I was gonna say to your point I think there probably needs to be a look back

789
01:09:32,720 --> 01:09:37,880
 to see the changes to then answer because I think your questions valid what's

790
01:09:37,880 --> 01:09:42,760
 changed why would we do this again right and I think credit to Brittany her staff

791
01:09:42,760 --> 01:09:49,360
 and some others components there that give me hope now you know if there's

792
01:09:49,360 --> 01:09:52,960
 an elephant in the room you might as well it's a pet right the council is absolutely

793
01:09:52,960 --> 01:09:57,520
 crazy right like that what they're gonna do nobody knows right like we held up a

794
01:09:57,520 --> 01:10:02,040
 school project for a neighborhood of 20 people right like we're gonna lose a

795
01:10:02,040 --> 01:10:07,360
 year of a school being open Borman so that we can go back and talk to 20

796
01:10:07,360 --> 01:10:12,720
 people that makes no sense to me I'm on the record that that's not a shock to

797
01:10:12,720 --> 01:10:17,400
 anybody in the room but what I'm saying is yeah so no we're not we're not

798
01:10:17,400 --> 01:10:23,480
 clicking on all cylinders at all it's but even in spite of that I'm not

799
01:10:23,480 --> 01:10:26,720
 encouraged by the council layout I'm encouraged there's an election every

800
01:10:26,720 --> 01:10:30,520
 year but what I am encouraged by is that Brittany and her staff and the people

801
01:10:30,520 --> 01:10:36,120
 that actually do the work are bringing in results irrespective of that right

802
01:10:36,120 --> 01:10:41,000
 they that the engine tech the the Schultz people those sort of things and

803
01:10:41,000 --> 01:10:44,400
 that was very compelling right and understanding that and so credit to them

804
01:10:44,400 --> 01:10:49,680
 credit to and just the energy of people wanting to be indenting and that sort of

805
01:10:49,680 --> 01:10:55,080
 thing so there's there's an organic desire to be in didn't in spite of these

806
01:10:55,080 --> 01:11:00,480
 dollars we don't have and the other thing that kind of in that kind of review

807
01:11:00,480 --> 01:11:06,880
 of what's changed you do have a ability to have that staffing that that human

808
01:11:06,880 --> 01:11:10,840
 capital that Frisco doesn't have that the colony doesn't have and so you're

809
01:11:10,840 --> 01:11:14,800
 we're able to leverage some of those unique opportunities now and that's

810
01:11:14,800 --> 01:11:19,440
 been even more pronounced and and so I think you know grants gate is as shiny

811
01:11:19,440 --> 01:11:22,440
 as nice as all of them but I'm hearing they're struggling during the week and

812
01:11:22,440 --> 01:11:26,160
 booming during the weekend and and so we're all kind of fighting those same

813
01:11:26,160 --> 01:11:31,680
 fights and so I think the ground has leveled a bit right and so then it's

814
01:11:31,680 --> 01:11:35,320
 about being intentional about what we go after having the right staff the right

815
01:11:35,320 --> 01:11:40,120
 tools that sort of thing but I think it's fair to say what's changed if we

816
01:11:40,120 --> 01:11:44,640
 look at the previous and look at now and to the railroad component the DCTA

817
01:11:44,640 --> 01:11:50,040
 train they they project now we'll see if it comes to be but next year or two

818
01:11:50,040 --> 01:11:55,960
 they'll speed up the train and can sync up with the silver line so now and then

819
01:11:55,960 --> 01:12:00,960
 if I can say 40 bucks a day and not have to park at DFW not have to be on the

820
01:12:00,960 --> 01:12:06,720
 train for eight hours to get there now it begins to you know now should have

821
01:12:06,720 --> 01:12:10,600
 been done a long time ago playing down a long time ago certainly you know but I'll

822
01:12:10,600 --> 01:12:16,500
 have to say I think we owe it to answer the questions concerns you have Lee is

823
01:12:16,500 --> 01:12:20,400
 spot-on with Scott McDonald he's putting out fires left and right but as we know

824
01:12:20,400 --> 01:12:24,640
 that top-down approach isn't the most efficient but it's it's what we have

825
01:12:24,640 --> 01:12:28,760
 right and so trying to change that culture but yeah I think there's there

826
01:12:28,760 --> 01:12:34,960
 needs to be a breakdown of who's new in place what new policies in place for the

827
01:12:34,960 --> 01:12:40,680
 board to consider and say okay yes or no do we feel like enough change to but but

828
01:12:40,680 --> 01:12:45,000
 I also tell you I'll say this the money I don't know what it's gonna cost but

829
01:12:45,000 --> 01:12:49,620
 we're $200,000 into a marijuana litigation of taxpayer money that we're

830
01:12:49,620 --> 01:12:53,280
 going to lose right and we're gonna come back for more right we're gonna we burn

831
01:12:53,280 --> 01:12:57,600
 through to what it came so when you talk about fiscal responsibility it's not

832
01:12:57,600 --> 01:13:04,240
 there and so and all these things are well documented I'm just your straight

833
01:13:04,240 --> 01:13:10,600
 shooter I'm a straight shooter just give it to you to work with yeah well I'm

834
01:13:10,600 --> 01:13:17,480
 just leaving it this I would love for any for you to read that report and you

835
01:13:17,480 --> 01:13:22,360
 know maybe even since a lot of these members of this board have not seen it

836
01:13:22,360 --> 01:13:28,480
 maybe you come back with a high-level you know summary of what the previous

837
01:13:28,480 --> 01:13:32,600
 report said our strengths and weaknesses were at the time and what they

838
01:13:32,600 --> 01:13:38,800
 recommended just as a benchmark you know for what this report is probably gonna

839
01:13:38,800 --> 01:13:46,120
 say the same thing but at least you know I have those bullet points I will say

840
01:13:46,120 --> 01:13:49,160
 that one of the things I learned while working for the city of Arlington is

841
01:13:49,160 --> 01:13:54,320
 that although the same issues will be persistent over time you have different

842
01:13:54,320 --> 01:13:59,280
 leadership and I do think that at the CMO level Sarah Hensley the three ACM I

843
01:13:59,280 --> 01:14:02,840
 really do enjoy working with them I think they're visionary and they want

844
01:14:02,840 --> 01:14:06,000
 change in the city and I think that matters what I've heard in the past is

845
01:14:06,000 --> 01:14:09,240
 that's been challenging and then City Council even though they don't always

846
01:14:09,240 --> 01:14:12,960
 get along or see eye-to-eye I do feel like all of them want the best for the

847
01:14:12,960 --> 01:14:17,860
 city and they do see that other cities are benefiting from sales tax

848
01:14:17,860 --> 01:14:22,000
 corporation right other funding mechanisms that we don't have and so the

849
01:14:22,000 --> 01:14:25,320
 way that our stuff is looking at it is the next five to ten years because as

850
01:14:25,320 --> 01:14:28,480
 you said we're already behind right like we're never gonna catch up to what the

851
01:14:28,480 --> 01:14:32,520
 sales tax money that Frisco has but in five to ten years we're still gonna be

852
01:14:32,520 --> 01:14:36,040
 behind if we don't do anything about it so that's kind of where we're looking at

853
01:14:36,040 --> 01:14:40,920
 it and yeah the same thing is Tony have you had a chance to read that last

854
01:14:40,920 --> 01:14:46,040
 report I have not okay then I that was what my recommendation is I would like

855
01:14:46,040 --> 01:14:52,640
 to know if you still think that is still relevant and if it's still relevant if

856
01:14:52,640 --> 01:14:57,640
 there's if there's bullet points in there that we did not do then I would

857
01:14:57,640 --> 01:15:02,640
 say let's address that if you think it makes sense as opposed to spending that

858
01:15:02,640 --> 01:15:07,340
 money because we may have all the tools that we need to do right there I mean

859
01:15:07,340 --> 01:15:10,680
 unless you think in the last I don't know how many years six seven years is

860
01:15:10,680 --> 01:15:14,440
 what you guys are saying unless you think that field has changed that much

861
01:15:14,440 --> 01:15:18,960
 but it sounds like we're so far off anyway if we start with the starter pack

862
01:15:18,960 --> 01:15:24,780
 and we already have in the desk drawer that'll probably get us along the way

863
01:15:24,780 --> 01:15:31,200
 redistribute that to the board members that are gonna be continuing so don't

864
01:15:31,200 --> 01:15:36,920
 tag Tony with it again but so we can all be familiar with it that was right

865
01:15:36,920 --> 01:15:49,160
 around 2021 right it was right and I think the other thing that I mean we

866
01:15:49,160 --> 01:15:55,320
 kind of mentioned I feel like several meetings and I go to different city

867
01:15:55,320 --> 01:15:59,600
 events or chamber events just various community events we'll have a panel of

868
01:15:59,600 --> 01:16:05,040
 people up there they all work here none of them live here so how do we fix that

869
01:16:05,040 --> 01:16:10,040
 I mean we'll start with the city how many of the city management office live

870
01:16:10,040 --> 01:16:16,640
 in the city then and then we go to every employer and how many of the top level

871
01:16:16,640 --> 01:16:21,140
 people live in the city so it's not a cross issue because those people can

872
01:16:21,140 --> 01:16:26,520
 afford to live here why do they choose not to that's right I'm going through it

873
01:16:26,520 --> 01:16:32,600
 right now actually I understand yeah I'll write that down all right Paul last

874
01:16:32,600 --> 01:16:36,800
 question and then we'll wrap on this if everyone's agreeable well I think it'll

875
01:16:36,800 --> 01:16:43,440
 surprise no one to hear that man I don't have the same wouldn't characterize

876
01:16:43,440 --> 01:16:49,520
 council and attitudes of the city the same way all right and I'll share with

877
01:16:49,520 --> 01:16:56,120
 you you know so obvious observations that when I counsel is elected they're

878
01:16:56,120 --> 01:17:01,200
 elected and they're reflecting what people want you know versus the

879
01:17:01,200 --> 01:17:04,880
 alternatives that are presented to them and I suggest to you that it

880
01:17:04,880 --> 01:17:09,960
 overwhelmingly people go down that proposal it's because they didn't want

881
01:17:09,960 --> 01:17:14,720
 it but what is it that they don't want and you know I'm I'm not here with a

882
01:17:14,720 --> 01:17:18,200
 raft of statistics I've just a lot of doors that would suggest that the

883
01:17:18,200 --> 01:17:22,600
 difference between what you know you see as obvious and what people aren't

884
01:17:22,600 --> 01:17:28,820
 responding to is they explicitly say to me I don't don't frisco my dent they

885
01:17:28,820 --> 01:17:31,960
 don't want to be frisco they don't want to be far around all these things that

886
01:17:31,960 --> 01:17:34,960
 you say look at all this great stuff that's happening it's not what they want

887
01:17:34,960 --> 01:17:39,020
 but it doesn't necessarily mean they don't want that and to develop they want

888
01:17:39,020 --> 01:17:45,480
 then to develop in ways that are better building on the aspects of dead in bed

889
01:17:45,480 --> 01:17:49,680
 they proceed to be special and so that then becomes even more special as they

890
01:17:49,680 --> 01:17:54,400
 grow possible to do but you know I'll also highlight to you I don't think

891
01:17:54,400 --> 01:17:57,760
 there's been an incentive proposed in the last five years it's been turned down

892
01:17:57,760 --> 01:18:03,480
 so that characterization is just not born out by the facts but why is it true

893
01:18:03,480 --> 01:18:07,760
 that you know in a council environment that you might perceive as hostile to

894
01:18:07,760 --> 01:18:09,920
 business that they're approving incentive after incentive after

895
01:18:09,920 --> 01:18:13,440
 incentive they're doing it because things that are brought to us reflect

896
01:18:13,440 --> 01:18:20,940
 some you know pure economics plus some contribution or resonance with the

897
01:18:20,940 --> 01:18:27,040
 character of Denton you know some you know they're bringing it's a little hard

898
01:18:27,040 --> 01:18:30,220
 to define I mean you know but the things that make Denton special and you

899
01:18:30,220 --> 01:18:33,880
 probably all know them without my saying it and they're looking for that they're

900
01:18:33,880 --> 01:18:39,040
 not looking for cookie cutter suburban North Texas they're just not so you know

901
01:18:39,040 --> 01:18:43,800
 the developers were smart about it and I would include people in this room no to

902
01:18:43,800 --> 01:18:47,240
 bring things that build on that character that's it's it's hard to

903
01:18:47,240 --> 01:18:54,400
 define but it's they're they're not just going off while the crazy they're

904
01:18:54,400 --> 01:18:58,320
 responding to the sentiment of the voters and the more that we can find the

905
01:18:58,320 --> 01:19:01,040
 common ground we're going to be able to move forward you know there's the

906
01:19:01,040 --> 01:19:06,120
 support for the downtown design plans huge a couple of big distinctions you

907
01:19:06,120 --> 01:19:12,240
 don't want to get rid of the pool neither do I but you know the center

908
01:19:12,240 --> 01:19:21,160
 polls slated to all you're doing a great job okay so in conclusion you know I

909
01:19:21,160 --> 01:19:25,240
 would say look for the common ground with the population there's an appetite

910
01:19:25,240 --> 01:19:36,440
 for Denton you know getting character development okay the final request I

911
01:19:36,440 --> 01:19:42,280
 think is give yourself an opportunity to see that report and perhaps circulated

912
01:19:42,280 --> 01:19:47,680
 to the returning members the 2025 members of the world as well the other

913
01:19:47,680 --> 01:19:51,760
 thing that I would just note we started off in a conversation around trying to

914
01:19:51,760 --> 01:19:56,400
 remove some redundancies of economic development boards and I think that

915
01:19:56,400 --> 01:20:01,240
 plays in well and the more cohesive we can be in tighter we can be in those

916
01:20:01,240 --> 01:20:07,520
 conversations we want to agree on and can put our support behind I think that

917
01:20:07,520 --> 01:20:16,800
 hands out in this too so anything else for us to bring to the table today we

918
01:20:16,800 --> 01:20:20,760
 still have staff reports right

919
01:20:20,760 --> 01:20:26,840
 we have seven minutes for staff reports

920
01:20:26,840 --> 01:20:37,280
 on the month of December it's only one slide we attended the Dallas regional

921
01:20:37,280 --> 01:20:40,880
 chamber breakfast and luncheon with the state economic development team and so

922
01:20:40,880 --> 01:20:44,480
 the Dallas regional chamber invited all the economic development agencies in the

923
01:20:44,480 --> 01:20:48,200
 region to attend a breakfast to meet with the state economic development team

924
01:20:48,200 --> 01:20:51,680
 so clay Parker business recruitment specialist attended that meeting in

925
01:20:51,680 --> 01:20:56,560
 Arlington and then I was invited to a private lunch with the DRC along with

926
01:20:56,560 --> 01:21:01,840
 Sherman McKinney and Frisco to in Frisco actually to meet with the team so that

927
01:21:01,840 --> 01:21:04,480
 was nice to catch up but they were really interested in learning more about

928
01:21:04,480 --> 01:21:08,040
 didn't and of course it's always marketing right it's great to make those

929
01:21:08,040 --> 01:21:11,180
 connections they're the ones that are sending us RFIs every month and we want

930
01:21:11,180 --> 01:21:13,960
 them to ensure that they are selling didn't when they're talking to

931
01:21:13,960 --> 01:21:19,920
 companies talking at the state level and so we also hosted a site tour a project

932
01:21:19,920 --> 01:21:23,760
 server this was a lead that came in from a site selection firm in the Dallas

933
01:21:23,760 --> 01:21:27,200
 Fort Worth region they contacted us at the beginning of December and said hey

934
01:21:27,200 --> 01:21:30,760
 we have a prospect coming in can you host them in the next two to three weeks

935
01:21:30,760 --> 01:21:37,160
 and so this is the thing the last week of Christmas clay myself and Jamie and

936
01:21:37,160 --> 01:21:42,600
 Matilda hosted the team and they also went all over the state of Texas I think

937
01:21:42,600 --> 01:21:48,240
 toward other cities that for a two-day period and so we're currently working on

938
01:21:48,240 --> 01:21:51,480
 incentive proposal hopefully in February we'll be able to bring it to you for

939
01:21:51,480 --> 01:21:55,800
 review we're working with our procurement legal and transportation

940
01:21:55,800 --> 01:21:59,800
 departments to develop a mobility test pilots for the city the city of Austin

941
01:21:59,800 --> 01:22:03,440
 is known for being a test bed for mobility startups and so they have

942
01:22:03,440 --> 01:22:08,000
 assisted many EV related companies autonomous vehicle technology pilots in

943
01:22:08,000 --> 01:22:12,160
 the city and so we're also working in that direction as well so Matilda is

944
01:22:12,160 --> 01:22:15,160
 leading that effort and hopefully we'll be able to launch that sometime this

945
01:22:15,160 --> 01:22:20,000
 year and on December 17th City Council approved hers one the terms one boundary

946
01:22:20,000 --> 01:22:25,160
 and term amendment so they are on the same page so we're moving forward right

947
01:22:25,160 --> 01:22:30,080
 now that means that we secured 50 million dollars of the next until 2041

948
01:22:30,080 --> 01:22:35,200
 for TERS related and Senate projects so that was that was great it was a good

949
01:22:35,200 --> 01:22:38,480
 start so that's all for December and actually I'm Kristen if you want to

950
01:22:38,480 --> 01:22:42,920
 quickly go over the downtown small business utility grant program sure if

951
01:22:42,920 --> 01:22:46,160
 it's okay I'll stand here Chris and Polita Main Street program manager you'll

952
01:22:46,160 --> 01:22:50,360
 remember back in September we worked with the city manager's office to

953
01:22:50,360 --> 01:22:55,480
 initiate the downtown small business utility grant and so we mailed out over

954
01:22:55,480 --> 01:22:59,920
 500 letters we hosted in person and virtual sessions for everyone to

955
01:22:59,920 --> 01:23:04,440
 understand how to process all of that working with the grants team we had 28

956
01:23:04,440 --> 01:23:07,160
 businesses that were approved for the reimbursement so it was a reimbursement

957
01:23:07,160 --> 01:23:11,200
 up to a thousand dollars the average reimbursement about seven hundred and

958
01:23:11,200 --> 01:23:16,760
 forty three dollars so businesses downtown received their reimbursement on

959
01:23:16,760 --> 01:23:23,240
 their December utility bill and so we spent a total of $20,000 for that

960
01:23:23,240 --> 01:23:39,960
 utility grant all of the downtown businesses UPS update last meeting last

961
01:23:39,960 --> 01:23:45,980
 month we talked about what happened with UPS so I was able to speak with their

962
01:23:45,980 --> 01:23:50,640
 leadership you know a little history they've been around on Shady Oaks Drive

963
01:23:50,640 --> 01:23:57,200
 since 1991 it was a 30,000 square foot facility over the last 34 years they

964
01:23:57,200 --> 01:24:02,280
 only applied with the city for one commercial alteration permit 2003 was

965
01:24:02,280 --> 01:24:07,560
 finished in 2004 they had not applied for any alterations in 20 years they had

966
01:24:07,560 --> 01:24:13,120
 69 drivers at that warehouse and 50 warehouse loaders workers just general

967
01:24:13,120 --> 01:24:20,120
 workers less than 50 in their warehouse they closed on October 7th 2024 part of

968
01:24:20,120 --> 01:24:25,760
 the closed part of their national campaign called Network of the Future

969
01:24:25,760 --> 01:24:30,600
 where they're closing 200 distribution facilities around the country they want

970
01:24:30,600 --> 01:24:34,520
 to increase automation and reduce operational costs obviously they want to

971
01:24:34,520 --> 01:24:40,160
 save some money through automation on this this was their five initiatives the one

972
01:24:40,160 --> 01:24:45,560
 to focus on was other 200 facilities that closed around the country 70 have

973
01:24:45,560 --> 01:24:51,160
 already been closed 200 are going to be closed and then an expansion which is

974
01:24:51,160 --> 01:24:55,820
 kind of key here I'll talk about the second in 2028 they've got 63 automated

975
01:24:55,820 --> 01:25:02,880
 warehouses in the country which could be hope for us one day I'll mention just a

976
01:25:02,880 --> 01:25:06,960
 second so why they leave them had a chance to speak with Nick DeAndre who's

977
01:25:06,960 --> 01:25:10,760
 vice president public affairs for UPS he filled a lot of these calls from cities

978
01:25:10,760 --> 01:25:16,800
 around the country no fault they loved him they want to write the UPS ship he

979
01:25:16,800 --> 01:25:20,720
 stayed that over and over mr. mayor he gave me a cell phone number so if you

980
01:25:20,720 --> 01:25:25,160
 want to call him he'd love to talk to you also and let you know that you really

981
01:25:25,160 --> 01:25:29,480
 love this the workers love their time here and then but they want to be more

982
01:25:29,480 --> 01:25:34,120
 efficient focus on automation and their buildings for sale and they were

983
01:25:34,120 --> 01:25:37,480
 looking for help so they were able to talk with John weather to stack and

984
01:25:37,480 --> 01:25:40,280
 they've come back and told him that they're gonna hold on that building a

985
01:25:40,280 --> 01:25:43,880
 little bit which leaves the door a little bit open for maybe that becomes

986
01:25:43,880 --> 01:25:46,840
 an automated warehouse at some point but they own that building they're gonna

987
01:25:46,840 --> 01:25:51,840
 hold on to it for a while the drivers were able to keep their jobs not though

988
01:25:51,840 --> 01:25:55,800
 like I said the warehouse workers or loaders or whoever was working there

989
01:25:55,800 --> 01:26:01,560
 less than 50 employees there's 69 drivers 60 went to the independence

990
01:26:01,560 --> 01:26:06,360
 facility which is their crown jewel down a fourth automation six went to Sherman

991
01:26:06,360 --> 01:26:13,640
 3 went to Wichita Falls so I won't get anything else but that's kind of a

992
01:26:13,640 --> 01:26:18,800
 recap it was asked about you know what happened with UPS was it arguing the

993
01:26:18,800 --> 01:26:21,920
 city was the permits it wasn't any of that was just automation and they're

994
01:26:21,920 --> 01:26:26,640
 going down that route to save some money in the future but with them holding the

995
01:26:26,640 --> 01:26:30,480
 rights that building their hope is you know maybe they will retrofit that

996
01:26:30,480 --> 01:26:36,880
 facility and come back that's where we are that hopefully every month we can

997
01:26:36,880 --> 01:26:40,160
 give some updates on some business retention similar to this to give you

998
01:26:40,160 --> 01:26:45,080
 guys some key nuggets what's going on everybody real quick I think last month

999
01:26:45,080 --> 01:26:50,800
 my comment was that doesn't look at the issue here but going forward I still

1000
01:26:50,800 --> 01:26:56,680
 would like to get a process in place where that if there is or at least to

1001
01:26:56,680 --> 01:27:01,780
 consider it if there is a decision that a department within the city of Denton

1002
01:27:01,780 --> 01:27:09,920
 makes on a business over a certain number of employees that as that decision

1003
01:27:09,920 --> 01:27:12,960
 is being made that they bring it to economic development to discuss that so

1004
01:27:12,960 --> 01:27:17,640
 that if there's something that economic development do to kind of offset that

1005
01:27:17,640 --> 01:27:22,720
 burden this group has the opportunity to hear that and I think that department

1006
01:27:22,720 --> 01:27:28,320
 head should present that you know to explain it really why they're saying

1007
01:27:28,320 --> 01:27:32,040
 what they're saying so

1008
01:27:32,040 --> 01:27:39,600
 and that may be part of Jamie's that's probably not an immediate deal okay

1009
01:27:39,600 --> 01:27:43,280
 that's more of a long-term deal but I think it's important for city staff

1010
01:27:43,280 --> 01:27:47,600
 that's making that decision to make that presentation here because they're making

1011
01:27:47,600 --> 01:27:52,720
 decisions based on rules and guidelines that they have that only their

1012
01:27:52,720 --> 01:27:58,440
 department knows about Rick thank you for bringing the this topic forward and

1013
01:27:58,440 --> 01:28:04,880
 the last week appreciate it Jamie thank you for anything else to be brought

1014
01:28:04,880 --> 01:28:10,240
 before the board only just brief comment not to talk now but you know we talked

1015
01:28:10,240 --> 01:28:13,760
 about the uniqueness of the square we talked you know we made comments over

1016
01:28:13,760 --> 01:28:21,360
 the last six months about issues on leasing I continue to open although the

1017
01:28:21,360 --> 01:28:26,040
 paper less but whenever articles are sent to me about then then I read them

1018
01:28:26,040 --> 01:28:32,440
 can we you know balling boards gone Andy's is gone voodoo I heard is not

1019
01:28:32,440 --> 01:28:39,480
 coming that was coming before is that true that's correct so that's three

1020
01:28:39,480 --> 01:28:45,200
 buildings on the square I've heard that there's you know obviously two of those

1021
01:28:45,200 --> 01:28:48,160
 businesses have common ownership I don't know if there's future businesses are

1022
01:28:48,160 --> 01:28:54,920
 really in the square associated with that so I guess my goal or my question is

1023
01:28:54,920 --> 01:28:59,800
 is our goal to have a unique square or a vibrant square and if it's unique but

1024
01:28:59,800 --> 01:29:03,200
 vacant I don't think that's really what we're going for so I think we need to

1025
01:29:03,200 --> 01:29:10,200
 figure out how we stop or fix or help that area

1026
01:29:10,200 --> 01:29:13,840
 it is on our radar Jeremy because it is very concerning that's on a fun thing to

1027
01:29:13,840 --> 01:29:18,560
 read in the last quarter that's three we agree and so we were aware of some of

1028
01:29:18,560 --> 01:29:22,240
 the issues behind the scenes right and so we have a strategy in place that

1029
01:29:22,240 --> 01:29:26,080
 we're still kind of putting together we have a general idea what we're gonna do

1030
01:29:26,080 --> 01:29:31,320
 right but it is on our radar we're gonna start on business pretty soon and we're

1031
01:29:31,320 --> 01:29:34,400
 probably gonna look at unique businesses right that are going to ensure that we

1032
01:29:34,400 --> 01:29:38,800
 keep our eccentric nature downtown that probably have a larger capital step

1033
01:29:38,800 --> 01:29:46,080
 behind them but regional and general that's something I'll do that it's a

1034
01:29:46,080 --> 01:29:52,640
 really good point and I would imagine those decisions yeah in the paper it's

1035
01:29:52,640 --> 01:29:57,600
 becoming it's a trend let's figure out what's causing that trend and if there's

1036
01:29:57,600 --> 01:30:00,480
 adverse factors that are affecting those businesses people don't want to go

1037
01:30:00,480 --> 01:30:08,160
 there my personal shopping patterns I don't go downtown much anymore and I

1038
01:30:08,160 --> 01:30:13,240
 can't really explain why that is but it's something we need to address and I

1039
01:30:13,240 --> 01:30:16,840
 want to support it and probably more than anybody

1040
01:30:16,840 --> 01:30:26,520
 next year any other completely take your point I just just have one data point

1041
01:30:26,520 --> 01:30:31,200
 and said I understand for brilliant board there's another one behind it so

1042
01:30:31,200 --> 01:30:36,960
 that won't be naked but I don't know if the situation is just in the paper yeah

1043
01:30:36,960 --> 01:30:46,480
 yeah this week anything like they have to go yeah all right it is 1233 we'll

1044
01:30:46,480 --> 01:30:50,440
 adjourn at this point thank you everyone Tony thank you for your service on this

1045
01:30:50,440 --> 01:30:53,320
 board appreciate you