WEBVTT 00:00:00.000 --> 00:00:07.640 All right good morning everyone I have just after 11 o'clock and I believe we 00:00:07.640 --> 00:00:14.960 have established a quorum so we're gonna go ahead and start the meeting it is 00:00:14.960 --> 00:00:28.800 11.03 on Wednesday January 8 2025 we're gonna start with the review of the ADP 00:00:28.800 --> 00:00:34.020 board minutes any questions for those that were for those minutes that were 00:00:34.020 --> 00:00:41.560 shared if no questions I'll receive have a move and a second second any 00:00:41.560 --> 00:00:45.800 discussion around them hearing done everyone a favor signify by saying aye 00:00:45.800 --> 00:00:52.200 aye any opposed so carries thanks everyone let's move into item B which is 00:00:52.200 --> 00:01:00.520 24 - 0 8 9 reappoint members at EVP and to the to the downtown Economic 00:01:00.520 --> 00:01:06.040 Development Committee any questions on that 00:01:06.040 --> 00:01:15.000 this is a reminder of the dedicated committee of this board so we are you do 00:01:15.000 --> 00:01:21.920 oversee the dead at board directors and so Vanessa and the exhibit had listed more 00:01:21.920 --> 00:01:26.280 members that are seeking reappointment so Scott I believe it could be one 00:01:26.280 --> 00:01:31.080 appointment and then also we're asking you to vote nominate a chair from this 00:01:31.080 --> 00:01:34.880 board to serve on the dead at committee and that's something that Jeremy Pikes 00:01:34.880 --> 00:01:41.520 was serving on for the past year and you may recall last meeting possible and so 00:01:41.520 --> 00:01:45.040 anyone that's maybe willing to serve on the dead at core as chair for the room 00:01:45.040 --> 00:01:51.080 next year that's what we're seeking to vote on - any questions on that just 00:01:51.080 --> 00:01:55.640 because you've knocked off your nameplate so no one can see 00:01:55.640 --> 00:02:06.200 consideration all right so first do we need to do first the the board members 00:02:06.200 --> 00:02:11.240 and get it for the reappointment I'm sorry and then from that choose or 00:02:11.240 --> 00:02:17.220 nominate a chair that appropriate reappoint the people who are eligible for 00:02:17.220 --> 00:02:31.760 reappointment and then their vacancy thank you okay so three steps is that 00:02:31.760 --> 00:02:38.240 right first is recognizing voting for reappointment of those who are already 00:02:38.240 --> 00:02:47.800 established and those names are on the monitors at this point so each member 00:02:47.800 --> 00:02:51.240 needs attendance requirements for reappointment so Peggy caps Hank 00:02:51.240 --> 00:02:55.420 Dickinson Rita Maloney with the county and Brock McKnight are seeking 00:02:55.420 --> 00:03:12.720 reappointment thank you is there a second to that thank you I'll bet you do 00:03:12.720 --> 00:03:20.620 and any discussion on it all right if ready to vote all in favor signify by 00:03:20.620 --> 00:03:28.120 saying aye aye any opposed that that carries thank you for that and then the 00:03:28.120 --> 00:03:38.620 second is to nominate folks to continue the urge to fulfill like chair has to be 00:03:38.620 --> 00:03:45.640 a member of this body so the first four were second year reappointments those 00:03:45.640 --> 00:03:53.240 two it sounds like those are also reappointments another motion to 00:03:53.240 --> 00:04:00.240 reappoint the people to continue that term okay all right so that's Jill and 00:04:00.240 --> 00:04:09.840 Pearson Kristen rather so I'll take that again second thing Jeremy any questions 00:04:09.840 --> 00:04:15.840 or conversation around it hearing that all in favor say goodbye but signify by saying aye aye any 00:04:15.840 --> 00:04:23.480 opposed that carries as well and how many do we need for completion of that 00:04:23.480 --> 00:04:36.800 board nominees we've successfully renominated so we've addressed the the 00:04:36.800 --> 00:04:44.680 board needs and now we need to identify and nominate a board chair from that and 00:04:44.680 --> 00:04:52.480 that comes from this board thank you all right the chair will accept nominations 00:04:52.480 --> 00:05:08.240 or that I'm not doing this but you can nominate yourself right yeah yeah I think 00:05:08.240 --> 00:05:13.200 I might even return the favorite Tony's I might even know what I tell you this 00:05:13.200 --> 00:05:26.920 is my last meeting when you meet it's the every other month I believe the next 00:05:26.920 --> 00:05:36.720 meeting for daddy is in February it's the first I'm sorry every six is every 00:05:36.720 --> 00:05:44.660 other month the first Thursday Thursday Thursday the first Thursday at 830 and 00:05:44.660 --> 00:05:48.740 it's usually for an hour in the morning a third 00:05:48.740 --> 00:06:03.080 background she was we're looking at ways to consolidate as you recall what we 00:06:03.080 --> 00:06:06.720 discussed last December we have four boards direct economic development board 00:06:06.720 --> 00:06:12.160 so we have three downtown boards that we're working with right now and we some 00:06:12.160 --> 00:06:16.280 of our the content that we're presenting every month is repetitive and so this 00:06:16.280 --> 00:06:21.080 position it may depending on how the board consolidation looks it may not be 00:06:21.080 --> 00:06:26.480 the full year right there's other members willing to I'm sure serve us 00:06:26.480 --> 00:06:34.720 maybe fill in during those meetings if you can't make it we have a nomination 00:06:34.720 --> 00:06:45.560 by your second it's in this same room break you're comfortable with the 00:06:45.560 --> 00:06:52.760 nomination thank you we'll move forward with a vote all in favor of nominating 00:06:52.760 --> 00:06:59.520 rec who has agreed to participate as such signify by saying aye aye accepting 00:06:59.520 --> 00:07:06.600 you know objections no objections noted thank you we appreciate you stepping in 00:07:06.600 --> 00:07:13.200 and Jeremy thank you for serving as well thank you all right that was supposed to 00:07:13.200 --> 00:07:17.920 take 15 minutes and it felt a lot longer but I think we're done with it thank you 00:07:17.920 --> 00:07:27.040 all all right work session we're ready to go into all right we'll begin the work 00:07:27.040 --> 00:07:33.000 session with the item a EDP 24 - 0 and 9 0 00:07:33.000 --> 00:07:41.960 Erica Sullivan will be presenting this well Erica gets ready I had a couple of 00:07:41.960 --> 00:07:46.040 folks asked me what the other person looked like and the other person looks 00:07:46.040 --> 00:07:51.400 like my dermatologist so always bet on the dermatologist and any direct 00:07:51.400 --> 00:07:57.240 consultant good morning my name is Erica Sullivan I'm the economic development 00:07:57.240 --> 00:08:00.560 administrator here at the city and I'll be giving a joint presentation today 00:08:00.560 --> 00:08:06.160 with Paul Sherman he's the economist from impact data source so I'll be 00:08:06.160 --> 00:08:09.120 conducting the first part which is a presentation and he will follow with a 00:08:09.120 --> 00:08:16.360 live demonstration of our impact model so impact dashboard from impact data 00:08:16.360 --> 00:08:20.280 source on it is an Austin based company it's an economic development modeling 00:08:20.280 --> 00:08:25.280 tool that's fully customizable it allows us to perform economic impact analysis 00:08:25.280 --> 00:08:31.360 to see over here as well as an incentive analysis period prior practice we used a 00:08:31.360 --> 00:08:36.040 formula from UNT Center for economic development research that anticipated 00:08:36.040 --> 00:08:41.240 those spin-off effects but this is much more detailed and provides much more 00:08:41.240 --> 00:08:45.640 information which we're going to go into some of the key inputs that staff puts 00:08:45.640 --> 00:08:51.120 into the model or jobs the average weighted salaries the NAICS code capital 00:08:51.120 --> 00:08:56.440 investment we include other things like sales tax sales tax spending a number of 00:08:56.440 --> 00:09:01.360 truck nights they might be spending for to estimate hotel occupancy taxes for 00:09:01.360 --> 00:09:08.040 example and so the way the model works is you have an event so it's either a 00:09:08.040 --> 00:09:11.880 contraction of a business or it's an expansion or a new business locating 00:09:11.880 --> 00:09:15.520 we're going to focus on the newer expanding business so you'll see the 00:09:15.520 --> 00:09:20.120 economic impact here which is the direct impact today we're using Southwire 00:09:20.120 --> 00:09:24.200 also called project orange which we approved in the fall as an example 00:09:24.200 --> 00:09:28.160 project so the direct impact or the direct jobs are created by the project so 00:09:28.160 --> 00:09:31.760 in the case of Southwire that's 95 derived jobs so then you have your 00:09:31.760 --> 00:09:36.320 indirect impact and you're induced these are your ripple effects or spin-offs so 00:09:36.320 --> 00:09:39.760 indirect as a jobs and sales output companies supplying goods or services to 00:09:39.760 --> 00:09:44.560 the new expanded industry if they hire a consulting firm or they hire a CPA for 00:09:44.560 --> 00:09:48.760 example induced impact the jobs and sales output created with an employee 00:09:48.760 --> 00:09:53.080 from the new expanded job spends their money at another establishment so in this 00:09:53.080 --> 00:09:56.400 case we have an expanded manufacturing facility they might be spending money at 00:09:56.400 --> 00:10:01.480 a restaurant and then that restaurant hires employees so those together is our 00:10:01.480 --> 00:10:08.160 spin-off and that's 64 for a total of 159 jobs and they use a rims model from 00:10:08.160 --> 00:10:12.480 the Department of Commerce to come up with the multipliers for both the number 00:10:12.480 --> 00:10:16.720 of jobs and for their wishes and then the fiscal impact is a tax revenue 00:10:16.720 --> 00:10:19.920 generated by the project so that would be your sales or indoor property and 00:10:19.920 --> 00:10:22.640 that's why the businesses and the households that are created from the 00:10:22.640 --> 00:10:28.560 employees that are relocating so then the fiscal impact also includes and we 00:10:28.560 --> 00:10:31.960 that's one of the things we really liked about this model is the cost for 00:10:31.960 --> 00:10:36.600 utility and governmental services particularly since we have debt municipal 00:10:36.600 --> 00:10:42.800 electric our own municipal utility so fiscal impacts we'll go over the benefits 00:10:42.800 --> 00:10:46.480 a little bit more detail so the public tax revenue we talked about ad loan or 00:10:46.480 --> 00:10:51.600 property tax sales tax sales tax can include a number of different things so 00:10:51.600 --> 00:10:55.600 you have sales tax that they a taxable spending from the business that taxable 00:10:55.600 --> 00:11:00.360 sales that they generate hotel occupancy they also are spending money while 00:11:00.360 --> 00:11:04.400 they're staying here sales tax purchasing items while they're here gas 00:11:04.400 --> 00:11:10.560 and food other public revenue so utility revenue franchise fees building and 00:11:10.560 --> 00:11:17.120 permit fees now we look at the fiscal impact cost after we looked at the 00:11:17.120 --> 00:11:21.840 benefits the cost providing municipal services and utility services and of 00:11:21.840 --> 00:11:26.520 course the incentive so the property tax abatement or rebate so ad valorem sales 00:11:26.520 --> 00:11:29.880 tax that could be a Texas direct pay permit for the construction of the 00:11:29.880 --> 00:11:35.000 facility or it can also be the sales tax cost share they generate and then DME 00:11:35.000 --> 00:11:38.960 our municipal electric utility growth rider so that's a five-year demand 00:11:38.960 --> 00:11:42.920 charge billing that's reduced from 50% for the five-year period at 10% 00:11:42.920 --> 00:11:46.440 decreasing and then we have a cash incentive so through our catalyst fund 00:11:46.440 --> 00:11:52.760 we can offer relocation expansion our new headquarters grant we can also do 00:11:52.760 --> 00:11:57.480 our job based grant residency bonus and then infrastructure so utility line fine 00:11:57.480 --> 00:12:05.480 for water and wastewater plan lines and here we're going to get into the model 00:12:05.480 --> 00:12:11.200 and into summary sheet a little bit and Paul will go into it in more detail but 00:12:11.200 --> 00:12:15.000 the net benefits that's from the business or workforce you look at the 00:12:15.000 --> 00:12:19.840 additional revenues created so it is a less the incentive and the government 00:12:19.840 --> 00:12:24.520 services and so the net in general should be positive if you see here over 00:12:24.520 --> 00:12:28.760 the ten-year period you've got a chart as well as on my hand side you've got 00:12:28.760 --> 00:12:32.760 all the benefits listed out and you also have it in your backup materials but the 00:12:32.760 --> 00:12:36.440 net benefits less incentives is in yellow and then the net benefits are 00:12:36.440 --> 00:12:42.320 orange and you'll see that's about the chart there and on top here as well so 00:12:42.320 --> 00:12:47.240 it's 1.7 for that 10-year period for this project for the net benefits less 00:12:47.240 --> 00:12:54.360 the incentive and so we have the rate of return and payback period and keep in 00:12:54.360 --> 00:12:58.000 mind that this is quantitative right we have qualitative things we look at as 00:12:58.000 --> 00:13:01.320 well fine arts is a good example of that but right now we're focusing on the 00:13:01.320 --> 00:13:04.720 quantitative so the rate of return the larger the rate of turn generally the 00:13:04.720 --> 00:13:07.800 better it is for the city and the payback the shorter the term the better 00:13:07.800 --> 00:13:12.520 is so in this particular project we had a rate of return of 22.9 percent and a 00:13:12.520 --> 00:13:17.560 payback period of 9 years which is ideal so if you see the chart over here you 00:13:17.560 --> 00:13:22.320 can see that the cumulative net benefit and the total incentive in that Nexus 00:13:22.320 --> 00:13:29.840 where they meet that's your payback period and then I'm going to hand it 00:13:29.840 --> 00:13:35.240 over to Paul Sharon who's going to do the live demo and then we'll both be 00:13:35.240 --> 00:13:38.240 available for questions 00:13:53.480 --> 00:14:07.720 when we tested you Paul can you hear us Paul can you yes yes I can how's it going 00:14:07.720 --> 00:14:15.480 we're gonna turn a demonstration over to you now ball okay cool let me see if I 00:14:15.480 --> 00:14:20.160 can get do you want me to share the the slides or you have those that you're 00:14:20.160 --> 00:14:24.180 showing we've done the slides it's just the demo so if you could just share the 00:14:24.180 --> 00:14:29.080 okay yeah okay 00:14:29.080 --> 00:14:49.080 all right so I think you can see that so I just to let you know I couldn't hear 00:14:49.080 --> 00:14:55.080 earlier I can hear you now so I apologize I know generally what went 00:14:55.080 --> 00:14:58.160 through on those slides but I don't know exactly what was said and maybe 00:14:58.160 --> 00:15:01.560 questions that were asked but I'll just kind of go through what we're looking at 00:15:01.560 --> 00:15:08.840 here with impact dashboard in the actual app so one of the outputs that you saw 00:15:08.840 --> 00:15:12.320 was the summary report for the city of Denton so that's kind of the page that 00:15:12.320 --> 00:15:16.920 we're looking at here we're in the software impact dashboard it's set up 00:15:16.920 --> 00:15:22.080 where you can get different iterations or different scenarios for a particular 00:15:22.080 --> 00:15:26.920 project so this is our project orange slash south wire and it this the one 00:15:26.920 --> 00:15:30.760 that we're looking at is called scenario one the selected one here right now 00:15:30.760 --> 00:15:35.360 again we're on our reports tab and we're on the kind of one page summary report 00:15:35.360 --> 00:15:44.200 from the perspective of the city of dent this this project included aspects of an 00:15:44.200 --> 00:15:48.840 existing company planning and expansion right now we're showing the results that 00:15:48.840 --> 00:15:53.600 zero in or focus on just the expansion impact you have the ability to kind of 00:15:53.600 --> 00:15:57.160 take the broader view to say what's the total impact of this company if we were 00:15:57.160 --> 00:16:01.520 to include the expansion as well as the company's existing activity so kind of 00:16:01.520 --> 00:16:06.880 that retained business but right now as we look at this we're noting 95 direct 00:16:06.880 --> 00:16:11.600 jobs and that's we're kind of clarifying that here where we say 95 new jobs at 00:16:11.600 --> 00:16:15.980 that $62,000 salary and we're clarifying the summary does not include the impact 00:16:15.980 --> 00:16:21.080 from the company's current activity which includes 324 retained jobs as well 00:16:21.080 --> 00:16:24.800 as some other property and so forth so everything we're looking at here as we 00:16:24.800 --> 00:16:28.680 present this version of the report it's just on that expansion or the new 00:16:28.680 --> 00:16:33.960 activity we're projecting the impact over the next 10 years that's just kind 00:16:33.960 --> 00:16:38.120 of a variable that depending on the circumstances you can adjust but again 00:16:38.120 --> 00:16:41.400 these blue boxes in the upper right hand corner are kind of capturing those 00:16:41.400 --> 00:16:45.480 economic impacts as we think about impact dashboard there's the economic 00:16:45.480 --> 00:16:50.160 impact which will drive the fiscal impact and then from that point you can 00:16:50.160 --> 00:16:55.000 analyze different incentives so these blue boxes in the upper right the 00:16:55.000 --> 00:16:59.640 economic impact with the 95 jobs 63 spinoff did this was information that was 00:16:59.640 --> 00:17:07.960 on the slide go ahead yeah okay sure go ahead just in regard to the 90 plus new 00:17:07.960 --> 00:17:15.160 jobs how many employees does that actually translate out to is that 95 00:17:15.160 --> 00:17:24.160 full-time jobs or is it a series of part-time are these benefited jobs yes 00:17:24.160 --> 00:17:29.440 it's 95 benefited jobs it is full-time jobs okay okay thank you thanks when we 00:17:29.440 --> 00:17:35.160 don't have full-time we use to part-time for a full-time equivalent okay yeah 00:17:35.160 --> 00:17:41.240 and it can that's a good point to clarify on a given project I would 00:17:41.240 --> 00:17:45.640 anticipate in most of these situations like I think this is a manufacturer we're 00:17:45.640 --> 00:17:50.840 probably going to be talking in terms of full-time positions and I don't know if 00:17:50.840 --> 00:17:53.680 it comes up in the indent and but I know for some of our other clients if we're 00:17:53.680 --> 00:17:57.300 looking at other types of development like a retail and restaurant and you're 00:17:57.300 --> 00:18:00.240 kind of trying to run something like through here there are going to be a 00:18:00.240 --> 00:18:07.160 higher number of part-time and so you can either reflect for example the head 00:18:07.160 --> 00:18:13.640 count of jobs so if that's full-time then that that's truly the head count but 00:18:13.640 --> 00:18:16.720 it would be reflected maybe in the average salary so this is kind of saying 00:18:16.720 --> 00:18:22.680 that 95 and the average across with 95 would be $62,000 per year when you see 00:18:22.680 --> 00:18:28.600 like a retailer a restaurant project that you put head count where the head 00:18:28.600 --> 00:18:32.960 count includes a lot of part-time folks you might see an average salary that you 00:18:32.960 --> 00:18:37.840 know maybe 17,000 or 20,000 or something and that just reflects the fact that 00:18:37.840 --> 00:18:43.360 there's a lot of people making you know part-time wages there but in this one we 00:18:43.360 --> 00:18:49.840 are talking about full-time folks at 95 again I apologize if I'm kind of 00:18:49.840 --> 00:18:54.000 retreading some of the things that were mentioned in the slides the 95 direct 00:18:54.000 --> 00:19:00.600 jobs will from our modeling is going to support an estimated 63.8 spin-off jobs 00:19:00.600 --> 00:19:04.680 so spin-off we're just saving some characters there that includes the 00:19:04.680 --> 00:19:08.920 indirect and induced impact so if we were to write that out it should really 00:19:08.920 --> 00:19:12.000 say indirect and induced but we're lumping it into say just spin-off 00:19:12.000 --> 00:19:16.880 indirect being jobs supported by suppliers for this business so the local 00:19:16.880 --> 00:19:21.880 supply chain the induced representing the workers spending so when these 95 00:19:21.880 --> 00:19:25.680 workers get paid their salary they're going to go re-spend some of that money 00:19:25.680 --> 00:19:29.320 in the community and supporting restaurants grocery stores and all that 00:19:29.320 --> 00:19:32.600 sort of thing so in total we're estimating the total employment impact 00:19:32.600 --> 00:19:38.200 from the expansion to be about 159 jobs let's call it we're noting the average 00:19:38.200 --> 00:19:41.800 salary just to kind of show the quality of jobs so to speak so the average 00:19:41.800 --> 00:19:46.700 worker makes direct worker makes about 62 or almost 63,000 spin-off workers 00:19:46.700 --> 00:19:51.080 make a little bit less across the average of all of the workers the 159 00:19:51.080 --> 00:19:56.800 it's about still about 61 almost $61,000 per year the other note that we make 00:19:56.800 --> 00:20:02.420 here is capital investment of almost 70 million dollars as we think of just the 00:20:02.420 --> 00:20:09.440 new buildings and FFME investments as we go over to this graph here this is where 00:20:09.440 --> 00:20:15.200 we capture that fiscal impact and it's almost easier to kind of take this in 00:20:15.200 --> 00:20:19.600 chunks the first step that we're going to be doing is looking at the benefits 00:20:19.600 --> 00:20:24.160 the cost and then boiling it down to the net benefit so the benefits really 00:20:24.160 --> 00:20:29.200 represent those additional revenues that we're estimating for the city so in the 00:20:29.200 --> 00:20:33.560 case of the city of Denton that includes some local sales taxes that are that the 00:20:33.560 --> 00:20:38.240 city will collect different amounts of property taxes and then some other 00:20:38.240 --> 00:20:42.720 revenues kind of related to utilities and some other things that's the benefit 00:20:42.720 --> 00:20:46.480 part of this as we look at this graph here the dark blue bar is showing us 00:20:46.480 --> 00:20:50.480 that benefit so as we kind of go across here you see this dark blue bar every 00:20:50.480 --> 00:20:54.320 year we add up all of those dark blue bars that's this five point six five 00:20:54.320 --> 00:20:58.880 point seven million in net benefit or excuse me in benefit the costs in this 00:20:58.880 --> 00:21:03.840 case are really reflective of just what we think of as costs to the city so 00:21:03.840 --> 00:21:07.080 we've got two of them in this case the cost of government service of kind of 00:21:07.080 --> 00:21:11.800 municipal services so police fire EMS those sorts of things as you have a new 00:21:11.800 --> 00:21:15.920 business coming in or I guess in this case an existing business expanding you 00:21:15.920 --> 00:21:20.400 have the potential for an increased demand on city services you also have 00:21:20.400 --> 00:21:25.680 the potential for workers filling those jobs that might relocate to the city and 00:21:25.680 --> 00:21:29.080 so that would be some residential costs to provide services to those new 00:21:29.080 --> 00:21:33.800 residents so that's kind of what we're reflecting here we're taking a look at in 00:21:33.800 --> 00:21:36.880 the background this is information that we update kind of on an annual basis 00:21:36.880 --> 00:21:40.840 we're looking at the city to try to understand from the general funds 00:21:40.840 --> 00:21:44.840 perspective what are the types of services that the city provides and then 00:21:44.840 --> 00:21:49.520 coming up with kind of a marginal cost for the city services to new businesses 00:21:49.520 --> 00:21:54.360 or to new households and so that's the reflection of what we're capturing there 00:21:54.360 --> 00:21:59.320 the other cost that's listed here for the city would be this cost of utility 00:21:59.320 --> 00:22:04.600 services this is intended to represent city-owned utilities so if we're trying 00:22:04.600 --> 00:22:09.400 to identify not only the you know the revenue that the city will collect from 00:22:09.400 --> 00:22:15.560 the increase in this company using more electricity more water and more solid 00:22:15.560 --> 00:22:20.480 waste and sewer services but also the fact that there's going to be a cost for 00:22:20.480 --> 00:22:23.320 the city to provide those services so that's what we're reflecting there so 00:22:23.320 --> 00:22:27.280 it's a lot of our clients you know you could kind of look at this and say well 00:22:27.280 --> 00:22:30.280 there's city-owned utility revenue coming in and then there's city-owned 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 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 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 00:22:44.400 --> 00:22:49.360 focus on these first three little icons the benefits the cost and the net 00:22:49.360 --> 00:22:54.200 benefits the cost would be these lighter blue bars that I'm hovering over now 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 00:22:58.000 --> 00:23:02.040 cost being adding up to about 2.6 million so just putting those two pieces 00:23:02.040 --> 00:23:05.960 together we get a net benefit of about three million dollars over this 10-year 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 00:23:10.440 --> 00:23:15.120 project now in this case we have an incentive that we're modeling which in 00:23:15.120 --> 00:23:19.920 this case happens to be just a property tax abatement in other instances if you 00:23:19.920 --> 00:23:24.840 were to do a property tax abatement and a grant or maybe some other other 00:23:24.840 --> 00:23:27.880 incentives you would see kind of different line items listed but in this 00:23:27.880 --> 00:23:31.520 case it's just a property tax abatement and the value that we've estimated for 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 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 00:23:40.080 --> 00:23:44.240 here so we see the 1.3 million in incentives and then we're backing that 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 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 00:23:54.560 --> 00:23:59.520 benefit less incentive and so graphically what that's doing here is 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 00:24:05.600 --> 00:24:09.720 incentive amount the abatement each year and we see that abatement amount in the 00:24:09.720 --> 00:24:15.360 lightest blue here and so that brings us down to this kind of yellow diamond for 00:24:15.360 --> 00:24:19.720 the net benefit less incentives each year so that's kind of this graph is a 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 00:24:23.400 --> 00:24:27.360 of these different things calculated but that's that's where we're ending up now 00:24:27.360 --> 00:24:32.200 as we think about the idea that this project is going to generate three 00:24:32.200 --> 00:24:37.080 million dollars in benefit net benefits for the city and that will accrue to the 00:24:37.080 --> 00:24:40.680 city over this ten-year period this orange line is giving us a sense of that 00:24:40.680 --> 00:24:45.160 cumulative net benefit over ten years so by year ten we're stretching up there to 00:24:45.160 --> 00:24:50.520 three million dollars now this tax abatement that we're considering in this 00:24:50.520 --> 00:24:55.840 case is getting modeled for each year there's a certain amount of taxes 00:24:55.840 --> 00:24:59.840 abated and so in year one we can see the value of the abatement is about 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 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 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 00:25:12.800 --> 00:25:16.800 million that we're noting here we're also reflecting it here with this dash 00:25:16.800 --> 00:25:21.160 reference line and what we're trying to consider here is where does that line 00:25:21.160 --> 00:25:25.520 intersects and the cumulative net benefit and the total incentive and in 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 00:25:29.480 --> 00:25:34.000 telling us that go ahead I want to interrupt just pause for a second in case 00:25:34.000 --> 00:25:42.600 anybody has any questions or any further demonstration questions yes yeah this is 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 00:25:49.280 --> 00:25:54.440 like a discount factor for what percent of the new jobs you assume won't result 00:25:54.440 --> 00:25:58.940 in residency here you know I mean not everybody moves directly to debt and 00:25:58.940 --> 00:26:03.200 right it could be saying or a fire bound or wherever you know outside so which 00:26:03.200 --> 00:26:09.840 would affect both the cost of services you know and the tax revenue that's one 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 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 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 00:26:25.820 --> 00:26:30.960 question we have is what percent of those new direct workers will represent 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 00:26:37.840 --> 00:26:42.120 this is our baseline default that we build in there for cases where you 00:26:42.120 --> 00:26:47.040 don't just have more information so this is something that can be adjusted 00:26:47.040 --> 00:26:52.000 depending on the circumstances but at a baseline we're plugging in an estimate 00:26:52.000 --> 00:26:56.560 that it might be about nine percent of those 95 workers would represent new 00:26:56.560 --> 00:27:01.100 households that means that most of the jobs are either being filled by existing 00:27:01.100 --> 00:27:06.760 Denton residents or people who commute to the city of Denton to work there so they 00:27:06.760 --> 00:27:09.100 don't necessarily live there but they live close enough and they'll just commute 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 00:27:15.360 --> 00:27:20.760 little bit here we have in our detailed report the the number of new residents 00:27:20.760 --> 00:27:24.880 in the city of Denton sorry workers who will move to the city this first one 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 00:27:29.520 --> 00:27:33.840 capturing out of the hundred and fifty eight total new jobs being created 00:27:33.840 --> 00:27:39.300 about 14 worker households moving to the city and then as we assume that each 00:27:39.300 --> 00:27:43.800 household might just might have you know maybe two and a half or 2.6 residents 00:27:43.800 --> 00:27:47.920 per household that's going to drive a total population or total new residents 00:27:47.920 --> 00:27:54.240 in the city 36 37 there that's an impressive level nuance built in that's 00:27:54.240 --> 00:28:00.480 cool question was just whether you're you have any experience of and is there 00:28:00.480 --> 00:28:07.440 any structure for you know tracking how much of this comes comes true you know 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 00:28:11.920 --> 00:28:15.280 very hard to track right the new residents part but I mean the enterprise 00:28:15.280 --> 00:28:22.000 specific you know tax revenue and so on is there any kind of you know tracking 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 00:28:28.640 --> 00:28:34.400 context of maybe a in another city where the the company didn't hit their goals 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 00:28:37.720 --> 00:28:42.160 and say this is what was projected and expected and then this is what actually 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 00:28:48.120 --> 00:28:54.520 suggest and typically when a when one of our clients is using the model for this 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 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 00:29:03.120 --> 00:29:06.840 incentive or the rate of return on an incentive there's usually an agreement 00:29:06.840 --> 00:29:10.760 and the agreement is going to dictate the company needs to invest whatever if 00:29:10.760 --> 00:29:14.760 it's six seventy million dollars and they need to hire ninety five workers by 00:29:14.760 --> 00:29:18.400 this point in time and those are usually the big things that are going to be 00:29:18.400 --> 00:29:23.960 driving this in this case the other kind of element here is this idea that this 00:29:23.960 --> 00:29:27.760 investment will come on to the tax rolls at a certain value and drive the 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 00:29:31.920 --> 00:29:36.320 of times depending on the incentive agreement and the type of incentive that 00:29:36.320 --> 00:29:41.360 would be you know what you are checking in on with the you know the performance 00:29:41.360 --> 00:29:47.200 of the projects of speaking those performance reports so we also have and 00:29:47.200 --> 00:29:51.080 as I look at this one we also have a return on investment report or net 00:29:51.080 --> 00:29:54.320 revenue report that tracks all that information and like he said everything's 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 00:30:05.400 --> 00:30:11.080 when I look at net benefits of three million I want to understand where is 00:30:11.080 --> 00:30:16.080 that coming from what are we depending on to happen and so kind of a important 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 00:30:20.480 --> 00:30:24.760 almost comes from real property and one point seven comes from FF&E so those are 00:30:24.760 --> 00:30:28.240 kind of our major major moving things there's some back and forth with 00:30:28.240 --> 00:30:32.200 utilities as we see here and there's some other calculations that we do around 00:30:32.200 --> 00:30:37.200 franchise fees and you know other tax revenue that we estimate but the the 00:30:37.200 --> 00:30:41.720 major thing that's driving that three million in this case is really the 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 00:30:47.000 --> 00:30:51.020 is our agreement kind of solid around well they have to invest this property 00:30:51.020 --> 00:31:03.080 and do we feel good about those any other questions before I also talk very fast 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 00:31:06.680 --> 00:31:11.040 continue ask questions go through the are there any other questions not 00:31:11.040 --> 00:31:14.760 specifically on this but I have a question to them before we leave this 00:31:14.760 --> 00:31:23.880 door closed okay thanks yeah I think we had 15 minutes allocated for it we're 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 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 00:31:37.920 --> 00:31:43.920 looking at that total 1.3 million incentive or in this case relative to 00:31:43.920 --> 00:31:48.160 this cumulative net benefit we see it intersects here around year three and we 00:31:48.160 --> 00:31:52.620 calculate that it'll take the city 2.9 years to collect enough in net benefits 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 00:31:58.880 --> 00:32:04.480 this payback framework because it's easy to think about for an abatement it's 00:32:04.480 --> 00:32:07.760 important to keep in mind that you're never actually out of pocket that full 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 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 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 00:32:22.160 --> 00:32:25.760 pocket the 1.3 million up front necessarily at least the way that this 00:32:25.760 --> 00:32:30.440 model or this incentive is modeled the other calculation the kind of key 00:32:30.440 --> 00:32:36.600 calculation here is this rate of return and we're just doing simply that the 00:32:36.600 --> 00:32:42.080 annual average annual rate of return and so we're saying okay look we're gonna 00:32:42.080 --> 00:32:45.280 get three million dollars over ten years that's about three hundred thousand 00:32:45.280 --> 00:32:50.120 dollars a year on an investment of 1.3 million that's about twenty two twenty 00:32:50.120 --> 00:32:56.120 three percent average annual rate of return this is more or less just kind of 00:32:56.120 --> 00:33:00.320 a benchmark for you to think about it as maybe you compare the next project to 00:33:00.320 --> 00:33:04.600 the last project and that sort of thing so this is helpful just to kind of 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 00:33:08.840 --> 00:33:12.760 a twenty five percent rate just helping you kind of conceptualize that as well 00:33:12.760 --> 00:33:17.880 the per job incentive gets reflected here which in a lot of instances doesn't 00:33:17.880 --> 00:33:21.440 necessarily make sense you're not you're not deciding this incentive based on a 00:33:21.440 --> 00:33:26.760 job count because this is a tax abatement and it just kind of is what it 00:33:26.760 --> 00:33:32.160 is in terms of this job calculation but but it's reflected there as well just 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 00:33:36.920 --> 00:33:39.880 you're actually able to model that incentive so in our case we had put in 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 00:33:44.280 --> 00:33:51.120 how we were getting that abatement value of 1.3 million but presumably if there 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 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 00:34:00.080 --> 00:34:04.320 there's any questions I think I mentioned the the ability to look at 00:34:04.320 --> 00:34:10.040 this either just the expansion or to kind of also incorporate the existing 00:34:10.040 --> 00:34:14.840 activity I'll click on that button real quick so we click total combined that's 00:34:14.840 --> 00:34:20.000 going to give us so to speak give us the context of the company's existing 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 00:34:25.040 --> 00:34:31.080 direct employment we're showing 419 and that's reflective of the 95 new jobs and 00:34:31.080 --> 00:34:38.320 the 324 retained jobs so again when you take that broader view the benefits and 00:34:38.320 --> 00:34:41.240 ever all of this kind of looks a little bit different quite a bit different in 00:34:41.240 --> 00:34:48.840 this case as we capture the ongoing benefits of the existing activity but in 00:34:48.840 --> 00:34:51.800 most cases a lot of our clients are going to want to focus on just the 00:34:51.800 --> 00:34:55.800 expansion because let's say that the incentive is just tied to providing the 00:34:55.800 --> 00:35:01.680 you know the company to to do that to kind of incentivize the company to 00:35:01.680 --> 00:35:05.360 expand as opposed to kind of you know compare it to the total value of the 00:35:05.360 --> 00:35:10.200 company there are instances I think with some of our clients where maybe it's a 00:35:10.200 --> 00:35:14.120 real retention type of project where it's all or nothing either they're gonna 00:35:14.120 --> 00:35:18.720 add this manufacturing line here in our city or they're gonna go somewhere else 00:35:18.720 --> 00:35:22.680 entirely and we're gonna lose the existing activity and so in those cases 00:35:22.680 --> 00:35:27.160 it might be more reasonable to look at the total combined but in this case I 00:35:27.160 --> 00:35:29.800 mean I think this is kind of a reasonable way to present it and it's 00:35:29.800 --> 00:35:33.440 definitely between the two options this is a more conservative way to look at 00:35:33.440 --> 00:35:38.600 it and it still shows a pretty quick payback period thank you for that 00:35:38.600 --> 00:35:44.680 presentation any questions from the board that there's no vote required on 00:35:44.680 --> 00:35:49.200 this this is for information only correct I think it's very good 00:35:49.200 --> 00:35:54.560 presentation do we do the very same thing for a city entity on your aviation 00:35:54.560 --> 00:35:59.200 representing on this board we're in the process of looking at fees as we go 00:35:59.200 --> 00:36:03.360 forward to make sure the airport pays for itself and one of the arguments I've 00:36:03.360 --> 00:36:09.040 had recently with them is they have never assessed all of the impact that 00:36:09.040 --> 00:36:13.640 the airport brings this community we don't have a clue what property tax is 00:36:13.640 --> 00:36:18.240 paid on the properties out the airport because it all goes to General Fund I'm 00:36:18.240 --> 00:36:22.080 okay with that but when we have a really big project like 35 million dollar 00:36:22.080 --> 00:36:27.840 runway we had to replace this year and this FAA pays 90% of our big ticket 00:36:27.840 --> 00:36:32.400 items how it returned to the community but the city still has to come up with 00:36:32.400 --> 00:36:37.080 three and a half million and those kind of projects our revenue has covered that 00:36:37.080 --> 00:36:42.920 without considering some of the other things like we know that this company 00:36:42.920 --> 00:36:47.880 here is here because we have an airport all these years ago that they can bring 00:36:47.880 --> 00:36:52.940 people in from Mexico and visit and those kind of things the indirect 00:36:52.940 --> 00:36:57.720 economic impact is also not measured for the City Council when they have a bill 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 00:37:04.240 --> 00:37:10.000 in the future the economic benefit to this community is so large we're happy 00:37:10.000 --> 00:37:13.080 to come up with a million or two million dollars out of the general fund to 00:37:13.080 --> 00:37:17.240 support these kind of things when the airport needs money I don't think that's 00:37:17.240 --> 00:37:22.520 been looked at seriously and I'm arguing now with the airport staff and it's 00:37:22.520 --> 00:37:26.640 before the council so I'll be making a presentation there at their upcoming 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 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 00:37:38.120 --> 00:37:43.280 don't know of another entity in the city that generates kind of return at the 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 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 00:38:00.680 --> 00:38:04.120 municipal electric he's done a customized input output model for 00:38:04.120 --> 00:38:09.320 construction workers because that was key to the project. He's also given step-by-step 00:38:09.320 --> 00:38:13.280 instructions how to do modeling for development services when a large 00:38:13.280 --> 00:38:17.120 housing development comes in. It doesn't exactly fit but he's helped us with that. 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 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 00:38:26.320 --> 00:38:30.520 move it to now that you know the departments to Paul if he has anything 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 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 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 00:38:45.080 --> 00:38:49.120 something like that. We've had experience using the model to try to reflect you 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 00:38:54.800 --> 00:38:58.200 lot of times the types of revenues that we see come through the model there will 00:38:58.200 --> 00:39:03.400 be the company having to pay like lease payments for like either a building 00:39:03.400 --> 00:39:08.400 that's owned by the city or hanger leases those sorts of revenues are new 00:39:08.400 --> 00:39:13.600 things that you would see pop up on the list of benefits. The other thing would 00:39:13.600 --> 00:39:17.760 be like fuel taxes or maybe fuel fees that are charged if the city's the 00:39:17.760 --> 00:39:21.460 fixed-base operator there that getting revenue from there's going to be a 00:39:21.460 --> 00:39:25.720 different set of revenues for example like the typical ones on a project like 00:39:25.720 --> 00:39:29.720 this are sales taxes and property taxes maybe hotel taxes those kinds of things 00:39:29.720 --> 00:39:33.160 but at the airport there's are there are some probably other revenues that might 00:39:33.160 --> 00:39:40.160 come into play like fuel fees and just other charges that are specific to sites 00:39:40.160 --> 00:39:44.400 on the airport and so those could be reflected as well either for an 00:39:44.400 --> 00:39:47.840 individual project or maybe you know which we try to look at you know the 00:39:47.840 --> 00:39:52.600 annual impact of all of the activity at the airport for example. 00:39:52.600 --> 00:40:01.400 Is the lack of that process kept the airport from growing or expanding 00:40:01.400 --> 00:40:08.320 because the City Council hasn't? Fortunately it's not because our request today the FAA 00:40:08.320 --> 00:40:12.320 funds so much that when it comes to them they're almost embarrassed to turn us 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 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 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 00:40:27.640 --> 00:40:33.240 months. That's pretty hard on general aviation. Now we're gonna have more 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 00:40:40.720 --> 00:40:46.120 reason we've grown is because general aviation has helped us grow. 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 00:41:14.360 --> 00:41:20.420 necessarily add new employees but it's a decision of keeping employees that we do 00:41:20.420 --> 00:41:26.240 have or keeping 80% of those employees versus losing all of those employees. He 00:41:26.240 --> 00:41:30.520 was demonstrating that with the total combined so if it was an all or nothing 00:41:30.520 --> 00:41:34.600 when he toggles between the expansion only and the total combined that's when 00:41:34.600 --> 00:41:41.920 you recapture that information. And yeah we have different projects sometimes like for 00:41:41.920 --> 00:41:47.000 engine tech you're investing in human capital rather than actual capital so 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 00:41:52.680 --> 00:41:58.640 of a judgment call I think if if your mandate or your goal in economic 00:41:58.640 --> 00:42:02.880 development is to kind of make jobs that comes into the play to play with how 00:42:02.880 --> 00:42:07.000 you'll evaluating kind of what rate of return and payback period you'll accept 00:42:07.000 --> 00:42:13.520 for a particular project when you're trying to incentivize it. The model you 00:42:13.520 --> 00:42:18.320 know as you think about you know putting different projects through here and like 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 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 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 00:42:30.040 --> 00:42:33.280 hands but based on the local tax structure you're you're gonna be driving 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 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 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 00:42:52.640 --> 00:42:57.160 our clients that they're trying to get like a headquarters and it's a large 00:42:57.160 --> 00:43:01.480 head count but relatively small capital investment maybe it's just some build 00:43:01.480 --> 00:43:05.040 out because they're leasing tenants in a shop because they're leasing a building 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 00:43:10.040 --> 00:43:15.600 number of jobs so you're gonna see a lower payback period or lower I should 00:43:15.600 --> 00:43:20.400 say on a project like that just because it doesn't have kind of the average 00:43:20.400 --> 00:43:25.000 amount of property per employee those kind of ratios that you would expect you 00:43:25.000 --> 00:43:30.760 know you know in a typical business. So the model is going to reflect that but 00:43:30.760 --> 00:43:36.920 typically higher capital investment and honestly higher taxable sales just based 00:43:36.920 --> 00:43:41.040 on the local tax structure are gonna drive higher net benefits. So there's a 00:43:41.040 --> 00:43:45.760 little bit of judgment that's needed to just kind of direct things in the way 00:43:45.760 --> 00:43:50.080 that you want right. So if you the example that I give sometimes is you 00:43:50.080 --> 00:43:53.120 know if you if you wanted to run a Chick-fil-A restaurant through here we 00:43:53.120 --> 00:43:57.640 could do that and it would show tons of taxable sales lots of sales tax revenue 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 00:44:01.800 --> 00:44:05.280 net benefits but you know do we take a step back and say are we gonna 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 00:44:09.440 --> 00:44:14.640 that added layer of kind of you know directing the types of projects that 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 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 00:44:27.240 --> 00:44:32.520 facility and the expansion when you toggles to that combined is that. So if they 00:44:32.520 --> 00:44:36.240 were going to leave all together without the incentive that's what that would 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 00:44:45.560 --> 00:44:49.560 contractions that you say FEMA is going to leave and we want to see what that 00:44:49.560 --> 00:44:53.680 impact would be. So what is that 11 million net benefit versus the one 00:44:53.680 --> 00:45:00.040 million on the other? What's the 11 million show? Yeah let me flip over to 00:45:00.040 --> 00:45:08.940 this other table here. So the this table is going to show us that same 00:45:08.940 --> 00:45:14.480 information the benefits, costs, net benefits, net benefits less than cents and but it's 00:45:14.480 --> 00:45:18.200 putting it in columns in terms of what the impact that is associated with the 00:45:18.200 --> 00:45:22.480 current activity versus the expansion and this is all projected out over the 00:45:22.480 --> 00:45:26.880 next 10 years. So if we assume the current level of activity continues on 00:45:26.880 --> 00:45:31.360 for 10 years this is the total kind of sales tax, property tax, different types 00:45:31.360 --> 00:45:35.160 of revenues that it generates. If we just want to look at the expansion which is 00:45:35.160 --> 00:45:37.720 kind of where we started where it's going to generate 3 million in net 00:45:37.720 --> 00:45:42.240 benefits and then after we back out these incentives 1.7 this is just the 00:45:42.240 --> 00:45:47.560 expansion over that 10 year period. And so the total column is kind of saying 00:45:47.560 --> 00:45:53.560 okay look the company sticks around that's going to drive 8.8 million of net 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. 00:46:00.560 --> 00:46:14.160 In this case zero jobs. My question is is a little different because from an 00:46:14.160 --> 00:46:19.680 elected standpoint right I trust staff to crunch the numbers that sort of thing 00:46:19.680 --> 00:46:25.240 right that that y'all do very well. My question would be adding to your 00:46:25.240 --> 00:46:29.880 visibility. So my question is does a tool do that and and to put that in 00:46:29.880 --> 00:46:37.120 perspective what I'm thinking is like a Yelp review meets Carfax report for 00:46:37.120 --> 00:46:41.720 businesses right. Do you have a historical look at businesses either 00:46:41.720 --> 00:46:44.920 they performed under form you use the example of one business that under 00:46:44.920 --> 00:46:49.720 perform do you archive that information to give us visibility because in an 00:46:49.720 --> 00:46:53.640 environment we're in now where you may have a startup that can present well in 00:46:53.640 --> 00:46:58.120 paper you know and and all those things but then having business records or 00:46:58.120 --> 00:47:04.160 archives or that sort of thing that then speaks to if they can because if the 00:47:04.160 --> 00:47:07.560 tool crunches the numbers I give you great numbers right I know the answers 00:47:07.560 --> 00:47:12.840 producing those producing those results is the hard part so and all they've done 00:47:12.840 --> 00:47:18.120 it in other cities productive presumably do you crawl networks do you leverage 00:47:18.120 --> 00:47:23.400 that information to understand kind of a scoring system for these businesses to 00:47:23.400 --> 00:47:28.520 the viability of them that sort of thing. Are you asking that specific business or 00:47:28.520 --> 00:47:33.000 that industry? That business so business comes to us and says hey we have one 00:47:33.000 --> 00:47:36.760 million locations we're gonna bring you one million dollars we're gonna hire one 00:47:36.760 --> 00:47:42.600 million people immediately but that same business failed to do so in eight other 00:47:42.600 --> 00:47:46.120 cities or they submitted different numbers to different cities that that 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 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 00:47:57.280 --> 00:48:03.040 working on our CRM system you like you working track incentives that whenever 00:48:03.040 --> 00:48:06.880 what engine type for example we'll be able to track what we started their apple 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 00:48:11.040 --> 00:48:15.000 actually met those criteria and Erica does as far as our compliance every year 00:48:15.000 --> 00:48:20.040 as well but we could also include sales tax dollars and other. We actually include 00:48:20.040 --> 00:48:24.240 sales tax in our net revenue reports so we do track that information we also 00:48:24.240 --> 00:48:28.200 have reference solutions we have a free membership through the library where it 00:48:28.200 --> 00:48:32.280 gives business credit rating so when we do retention visits you can get a summary 00:48:32.280 --> 00:48:36.920 from them a one page summary gives their competitors gives their information 00:48:36.920 --> 00:48:40.760 their credit rating everything you need when you go to that visit so that's key 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 00:48:45.880 --> 00:48:50.920 other because it's a US database so we can compare with other cities you know 00:48:50.920 --> 00:48:54.160 that are comparable like a Waco because they're college down we can look at a 00:48:54.160 --> 00:48:58.680 business in another city and see as well and you can immediately get their 00:48:58.680 --> 00:49:02.840 headquarters too when you click on one button on the reference solutions. Yeah so that 00:49:02.840 --> 00:49:07.040 would be critical to me just to understand the numbers present right 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 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 00:49:15.160 --> 00:49:19.800 somehow to say before we get to this phase that other phase to kind of 00:49:19.800 --> 00:49:25.080 process the numbers understand those and then before we go if we were to proceed 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 00:49:30.720 --> 00:49:35.480 conservative in the ripple effects. You're right to your point it's underwriting the 00:49:35.480 --> 00:49:38.480 business and what they've done in other cities to make sure what we're 00:49:38.480 --> 00:49:42.600 forecasting if they have ever done an incentive did they meet the incentive in other cities. 00:49:42.600 --> 00:49:48.800 Yes yeah because that that that beef place the guy showed up the next day had 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 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 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 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 00:50:11.760 --> 00:50:15.760 sure that continues to be the case. That's beyond the business too or that 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 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 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 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 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 00:50:41.080 --> 00:50:46.800 it looks really real right I mean technology is such that you know they 00:50:46.800 --> 00:50:50.400 those that are doing bad things have stepped up their game there's and there's 00:50:50.400 --> 00:50:54.200 a reason because they're successful right and so what are we doing to continue to 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 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 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 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 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 00:51:19.840 --> 00:51:25.560 conversation we appreciate you timing in with us all. We're gonna close the 00:51:25.560 --> 00:51:30.580 conversation and certainly can come back I'm sure that we're gonna arrange this as 00:51:30.580 --> 00:51:36.680 well. No vote needed. Thank you. I think we maybe just did these in opposite 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. 00:51:47.160 --> 00:52:06.080 Perfect. All right so in December actually early last year we discussed 00:52:06.080 --> 00:52:09.480 completing an incentive study and so we now change the name to competitiveness 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 00:52:14.080 --> 00:52:17.760 also discussed in this December meeting we want to ensure before we release this 00:52:17.760 --> 00:52:22.720 RP to find consultants to complete the study that we are covering all basis and 00:52:22.720 --> 00:52:30.600 so a brief overview and then we'll revert to getting your feedback. The objective 00:52:30.600 --> 00:52:33.840 of the study is to evaluate Denton's competitiveness based on top-site 00:52:33.840 --> 00:52:38.160 selection criteria considerations and provide recommendations to staff and the 00:52:38.160 --> 00:52:41.880 board on areas of improvements and opportunities and so right now we have a 00:52:41.880 --> 00:52:46.200 current deadline to submit for the consultants to submit the RP proposals 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 00:52:50.880 --> 00:52:55.840 Monday. I'm gonna skip that slide real quick. There are three deliverables that 00:52:55.840 --> 00:52:59.760 we're asking for and the number one is city comparisons. We're asking the 00:52:59.760 --> 00:53:03.880 consultant to collect and compare data based on the criteria section from cities 00:53:03.880 --> 00:53:08.360 in the Dallas/Port Worth region including Denton, Fort Worth, Dallas, McKinney, 00:53:08.360 --> 00:53:12.200 Fort Warney and surrounding counties as well as cities in other parts of Texas 00:53:12.200 --> 00:53:18.800 and the US that are comparable to our size or population, attributes, geography, 00:53:18.800 --> 00:53:22.920 demographics and other relevant factors to determine successes in recruitment of 00:53:22.920 --> 00:53:27.800 businesses and creating new jobs. The second deliverable is evaluation of 00:53:27.800 --> 00:53:32.280 existing incentives and ROI so analysis of existing incentive policies to 00:53:32.280 --> 00:53:36.560 ensure competitiveness and evaluation of existing incentive agreements and short 00:53:36.560 --> 00:53:41.800 and long-term ROI for the city's general fund. Evaluation of commercial first 00:53:41.800 --> 00:53:45.640 residential land within the city limits and tax revenue generated per acre or 00:53:45.640 --> 00:53:50.240 other metrics compared to other cities and the reason being is multiple state 00:53:50.240 --> 00:53:53.600 and county government entities on land within the city limits therefore averting 00:53:53.600 --> 00:53:58.040 Avalorum taxes collected for the city. And consideration of other development 00:53:58.040 --> 00:54:03.080 limitations including existing zoning or other factors. The third deliverable is 00:54:03.080 --> 00:54:07.000 recommendations and so the consultant will provide recommendations for 00:54:07.000 --> 00:54:10.520 improving all aspects of economic development practices, policies, 00:54:10.520 --> 00:54:14.040 developer environment and incentive structures in the city including the 00:54:14.040 --> 00:54:18.000 implementation of new facilities and infrastructure improvements if relevant 00:54:18.000 --> 00:54:22.640 and identify top trends impacting the facility location decision-making process 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 00:54:28.000 --> 00:54:32.880 city comparisons, this is where I need your help. So these are their type, site 00:54:32.880 --> 00:54:37.960 selection criteria that we're asking the consultants to compare us to or evaluate 00:54:37.960 --> 00:54:41.880 and so number one is workforce labor availability and that's the average 00:54:41.880 --> 00:54:46.480 wage comparisons, cost of living for employees. Number two availability of 00:54:46.480 --> 00:54:50.080 development-ready sites. What do we currently have available in terms of land 00:54:50.080 --> 00:54:54.080 with ready infrastructure and existing building availability. The cost of doing 00:54:54.080 --> 00:54:58.000 business, how do we compare to other cities. That's local property tax and 00:54:58.000 --> 00:55:01.800 sales tax rates, development permit and impact fees, development timelines and 00:55:01.800 --> 00:55:07.000 other related costs. Incentive evaluation, that's comparison of our current 00:55:07.000 --> 00:55:10.600 incentives and funding mechanisms to other cities and economic development 00:55:10.600 --> 00:55:15.600 policies of top performing cities. So why do Fort Worth have a better funding 00:55:15.600 --> 00:55:20.960 incentives for or funding pools for incentives? Yes, right and so that's 00:55:20.960 --> 00:55:24.920 something that they're gonna identify how we can improve and then fiscal and 00:55:24.920 --> 00:55:28.880 economic impacts of top incentivized projects awarded to comparable cities 00:55:28.880 --> 00:55:33.280 including what not limited to revenue recovery timelines, new revenue gains, new 00:55:33.280 --> 00:55:37.480 job gains, tax base diversification and other relevant factors. Of course 00:55:37.480 --> 00:55:42.520 utilities is very important when companies are looking to relocate so 00:55:42.520 --> 00:55:45.520 we're gonna look at utility rate comparisons and access infrastructure and 00:55:45.520 --> 00:55:49.960 number six transportation supply chain risk mitigation and number seven 00:55:49.960 --> 00:55:55.840 industrial and office market outlook. So on your table you have a draft of the 00:55:55.840 --> 00:56:02.200 RFQ and if you wanted to turn to page two please there are additional 00:56:02.200 --> 00:56:06.000 considerations on there which we will either eliminate today or keep depending 00:56:06.000 --> 00:56:09.160 on your feedback. I already heard Rick that we need to add airport development 00:56:09.160 --> 00:56:16.080 policies so if you look through seven through 16 there's other considerations 00:56:16.080 --> 00:56:20.760 that we could add that's political elections, project financing, cost of 00:56:20.760 --> 00:56:26.760 capital, climate change, environment and sustainability, geopolitical risk, federal 00:56:26.760 --> 00:56:31.800 and state legislation and policy, public opinion regarding projects, diversity, equity, 00:56:31.800 --> 00:56:37.640 inclusion, quality of placemaking or other factors. I will pass this to you are 00:56:37.640 --> 00:56:40.640 you okay? Everything listed in bold is something that we would definitely 00:56:40.640 --> 00:56:45.800 include in the RFQ. Is there anything else that we'd like to consider maybe 00:56:45.800 --> 00:56:53.320 that we have missed? Yes Councilman Meltzer. Well actually prior question is are we 00:56:53.320 --> 00:57:01.160 also asking you know in the RFQ for the provider to to give us information on 00:57:01.160 --> 00:57:06.120 what the top factors are to impact site selection or refill. If you know that we 00:57:06.120 --> 00:57:11.840 just want to do the evaluations. We are it'll depend on how they evaluate top 00:57:11.840 --> 00:57:15.240 site selection criteria so I believe we pulled this from the site selection 00:57:15.240 --> 00:57:18.880 guilds their report from last year what their top considerations were but on 00:57:18.880 --> 00:57:22.160 deliverable number three and we're listening then we're asking them to list 00:57:22.160 --> 00:57:29.800 trends that they see in the site selection world. Second of three questions 00:57:29.800 --> 00:57:36.080 what does quality of placemaking mean? It could be order redevelopment standards 00:57:36.080 --> 00:57:41.000 are we is this a great place to live? Are companies are we a competitive place 00:57:41.000 --> 00:57:45.320 where companies want to really relocate their company their employees here 00:57:45.320 --> 00:57:52.560 versus Frisco or Fort Worth or Arlington? Okay so not knowing exactly what that meant 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 00:57:58.760 --> 00:58:04.920 factors maybe that means the same thing and and it's going to be different you 00:58:04.920 --> 00:58:10.880 know different definitions of what quality of life but I know historically 00:58:10.880 --> 00:58:19.320 where the CEO wants to live has an out-size effect on the location you know 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. 00:58:26.320 --> 00:58:34.000 We'll add quality of life factors CEO housing availability. I use the CEO as 00:58:34.000 --> 00:58:38.600 a way to illustrate quality of life factors matter. 00:58:38.600 --> 00:58:46.080 Couple of things I would think about as far as I wouldn't necessarily compare 00:58:46.080 --> 00:58:51.440 just to cities that are our size I would compare to cities that we compete with. 00:58:51.440 --> 00:58:56.680 Northlake is a much smaller city but we compete with them against industrial 00:58:56.680 --> 00:59:01.680 users all the time. So Fort Worth obviously the Alliance Corridor Alliance 00:59:01.680 --> 00:59:06.880 everything around the Alliance I would pick who are we competing with for 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 00:59:11.440 --> 00:59:17.800 because they pay per employee right that you move into Frisco. South of Dallas you 00:59:17.800 --> 00:59:20.680 know with all the industrial down there I can't remember the name of the town 00:59:20.680 --> 00:59:27.200 but for industrial we compete with those guys all the time. 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 00:59:32.600 --> 00:59:37.940 competing for businesses around the airport back to how can we you know what 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 00:59:42.880 --> 00:59:48.800 distributions industrial building that has runway access you know is that 00:59:48.800 --> 00:59:53.080 something we need because we have the whole west side of the airport to be 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. 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. 01:00:09.320 --> 01:00:15.880 Yeah so anyway there's different things that we could do. Who is our 01:00:15.880 --> 01:00:21.160 competitors? The other thing I would say is we really need to look at is what 01:00:21.160 --> 01:00:27.760 land which you mentioned in here in infrastructure but if if we have a 300 01:00:27.760 --> 01:00:32.800 acre parcel which I currently have that we're working on developing is the 01:00:32.800 --> 01:00:39.160 sewer capacity is the water capacity enough to quickly go develop that. And 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 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 01:00:51.320 --> 01:00:55.400 actual timelines and you know we're serving on a board right now that we're 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 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 01:01:06.400 --> 01:01:10.960 what the flowchart says. Or the time they finally walk away. Yeah because that's I 01:01:10.960 --> 01:01:17.840 know several. And so I think those those things talking with businesses are the 01:01:17.840 --> 01:01:24.120 major things right. They don't plan 24 months to get a building permit you know 01:01:24.120 --> 01:01:28.800 and you know especially raw land if they're willing to build a building you 01:01:28.800 --> 01:01:33.400 know there's you go through all the processes. So I think those are three 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 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 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 01:01:45.920 --> 01:01:51.600 what's the cost to get a permit in the city. And how does that compare? 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 01:01:57.080 --> 01:02:02.920 cities it's our competitors which may not be our size. 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 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 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 01:02:28.520 --> 01:02:33.400 I just joined this board. You probably have it in your file. Was it six 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 01:02:38.880 --> 01:02:42.520 know what it cost the city. You know they came up here and interviewed business 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 01:02:52.640 --> 01:02:58.520 said every city almost every city in the Dallas Fort Worth area that we compete 01:02:58.520 --> 01:03:03.560 with big small medium. We don't compete with from an economic development 01:03:03.560 --> 01:03:06.520 standpoint because they had the sales tax they had the economic development 01:03:06.520 --> 01:03:13.520 tax. We are so underfunded compared to our competition that this almost seems 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 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 01:03:24.240 --> 01:03:31.320 do. You know it's our revenue ability. It's our competitive revenue. It's the 01:03:31.320 --> 01:03:36.160 process that the city goes through for permitting and getting deals done. We 01:03:36.160 --> 01:03:40.440 have probably one of the worst reputations in Texas for that process 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 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 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 01:03:57.040 --> 01:04:00.920 when you're doing the same same thing over and over again and inspecting 01:04:00.920 --> 01:04:08.440 different results. To me that is exactly what this process is. 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 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 01:04:20.960 --> 01:04:25.720 throughout the last 30 years. Maybe some things have changed but for the most 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 01:04:31.880 --> 01:04:39.160 because that comes up with most anyone trying to do work either new or extensive? 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 01:04:48.500 --> 01:04:54.080 resources that we have to actually move the permitting along? 01:04:54.080 --> 01:05:00.360 To speak to that a little bit with Scott McDonald being in his position now I 01:05:00.360 --> 01:05:04.400 think very highly of him and he's working very hard to try to make some 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 01:05:09.440 --> 01:05:14.600 doing business here for 20 years that I feel like the needle can really move and 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 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 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 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 01:05:34.960 --> 01:05:41.120 all on board to making some changes because Tony's right there's no reason 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 01:05:45.560 --> 01:05:50.520 just think I would like to see this presented to council and say hey guys if 01:05:50.520 --> 01:05:54.680 we get this report back is this something we're interested in looking at 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 01:05:58.400 --> 01:06:02.920 on city incentives then there's no reason to spend the money if council 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 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 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 01:06:19.440 --> 01:06:23.360 that from a political standpoint and then we get we spend the money good and 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 01:06:33.720 --> 01:06:39.160 economic development sales tax was we spent a lot of time and money as a 01:06:39.160 --> 01:06:44.160 business community to get that on a ballot if you remember if you were here 01:06:44.160 --> 01:06:49.920 Bill Patterson was chairman of that committee I was I was a treasurer and it 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 01:06:56.000 --> 01:07:00.440 for whatever reason whether it was the political climate whether it was the 01:07:00.440 --> 01:07:07.120 City Council at the time did not support it but this this community said you know 01:07:07.120 --> 01:07:11.600 a very effective no to that they didn't want that development here they didn't 01:07:11.600 --> 01:07:15.880 want other people coming in to our community helping pay for that which is 01:07:15.880 --> 01:07:23.680 ludicrous man and so we sit back for the last 25 years and we watched everything 01:07:23.680 --> 01:07:31.000 around us grow Flower Mountain, Lewisville, McKinney, Crisco, Sanger you know all 01:07:31.000 --> 01:07:36.680 these communities that have this this ability to raise funds to compete and 01:07:36.680 --> 01:07:42.600 and we're just sitting here in this little bubble and we were playing with 01:07:42.600 --> 01:07:48.400 you know with with almost play money now you know we do have certain avenues for 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 01:07:54.280 --> 01:07:59.280 if the City Council is going to approve spending this money which they've done 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 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 01:08:10.080 --> 01:08:17.400 like as a taxpayer we're just throwing money out the door so that's all 01:08:17.400 --> 01:08:22.080 the proposal here I believe this is not for us to vote on to give recommendation 01:08:22.080 --> 01:08:28.820 to from a board standpoint is the recommendation almost to reverse 01:08:28.820 --> 01:08:34.420 engineering understand that there will be an acceptance and an action taken by 01:08:34.420 --> 01:08:41.120 the recommendations before we make recommendations to these additions that 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 01:08:45.680 --> 01:08:49.920 not wasting council's time so respectful that and take that to council and say 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 01:08:54.560 --> 01:09:01.320 we support this and we're going to take action you know consider action for sure 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 01:09:06.920 --> 01:09:12.000 all everybody knows where I stand on this thing and we're spending our EDC 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 01:09:18.160 --> 01:09:22.080 these we pretty much know what recommendations this report are going to 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 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 01:09:32.720 --> 01:09:37.880 to see the changes to then answer because I think your questions valid what's 01:09:37.880 --> 01:09:42.760 changed why would we do this again right and I think credit to Brittany her staff 01:09:42.760 --> 01:09:49.360 and some others components there that give me hope now you know if there's 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 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 01:09:57.520 --> 01:10:02.040 school project for a neighborhood of 20 people right like we're gonna lose a 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 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 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 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 01:10:23.480 --> 01:10:26.720 encouraged by the council layout I'm encouraged there's an election every 01:10:26.720 --> 01:10:30.520 year but what I am encouraged by is that Brittany and her staff and the people 01:10:30.520 --> 01:10:36.120 that actually do the work are bringing in results irrespective of that right 01:10:36.120 --> 01:10:41.000 they that the engine tech the the Schultz people those sort of things and 01:10:41.000 --> 01:10:44.400 that was very compelling right and understanding that and so credit to them 01:10:44.400 --> 01:10:49.680 credit to and just the energy of people wanting to be indenting and that sort of 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 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 01:11:00.480 --> 01:11:06.880 of what's changed you do have a ability to have that staffing that that human 01:11:06.880 --> 01:11:10.840 capital that Frisco doesn't have that the colony doesn't have and so you're 01:11:10.840 --> 01:11:14.800 we're able to leverage some of those unique opportunities now and that's 01:11:14.800 --> 01:11:19.440 been even more pronounced and and so I think you know grants gate is as shiny 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 01:11:22.440 --> 01:11:26.160 booming during the weekend and and so we're all kind of fighting those same 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 01:11:31.680 --> 01:11:35.320 about being intentional about what we go after having the right staff the right 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 01:11:40.120 --> 01:11:44.640 look at the previous and look at now and to the railroad component the DCTA 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 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 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 01:12:00.960 --> 01:12:06.720 train for eight hours to get there now it begins to you know now should have 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 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 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 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 01:12:24.640 --> 01:12:28.760 right and so trying to change that culture but yeah I think there's there 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 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 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 01:12:45.000 --> 01:12:49.620 we're $200,000 into a marijuana litigation of taxpayer money that we're 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 01:12:53.280 --> 01:12:57.600 through to what it came so when you talk about fiscal responsibility it's not 01:12:57.600 --> 01:13:04.240 there and so and all these things are well documented I'm just your straight 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 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 01:13:17.480 --> 01:13:22.360 know maybe even since a lot of these members of this board have not seen it 01:13:22.360 --> 01:13:28.480 maybe you come back with a high-level you know summary of what the previous 01:13:28.480 --> 01:13:32.600 report said our strengths and weaknesses were at the time and what they 01:13:32.600 --> 01:13:38.800 recommended just as a benchmark you know for what this report is probably gonna 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 01:13:46.120 --> 01:13:49.160 that one of the things I learned while working for the city of Arlington is 01:13:49.160 --> 01:13:54.320 that although the same issues will be persistent over time you have different 01:13:54.320 --> 01:13:59.280 leadership and I do think that at the CMO level Sarah Hensley the three ACM I 01:13:59.280 --> 01:14:02.840 really do enjoy working with them I think they're visionary and they want 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 01:14:06.000 --> 01:14:09.240 that's been challenging and then City Council even though they don't always 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 01:14:12.960 --> 01:14:17.860 city and they do see that other cities are benefiting from sales tax 01:14:17.860 --> 01:14:22.000 corporation right other funding mechanisms that we don't have and so the 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 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 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 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 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 01:14:40.920 --> 01:14:46.040 report I have not okay then I that was what my recommendation is I would like 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 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 01:14:57.640 --> 01:15:02.640 say let's address that if you think it makes sense as opposed to spending that 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 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 01:15:10.680 --> 01:15:14.440 what you guys are saying unless you think that field has changed that much 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 01:15:18.960 --> 01:15:24.780 and we already have in the desk drawer that'll probably get us along the way 01:15:24.780 --> 01:15:31.200 redistribute that to the board members that are gonna be continuing so don't 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 01:15:36.920 --> 01:15:49.160 around 2021 right it was right and I think the other thing that I mean we 01:15:49.160 --> 01:15:55.320 kind of mentioned I feel like several meetings and I go to different city 01:15:55.320 --> 01:15:59.600 events or chamber events just various community events we'll have a panel of 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 01:16:05.040 --> 01:16:10.040 I mean we'll start with the city how many of the city management office live 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 01:16:16.640 --> 01:16:21.140 people live in the city so it's not a cross issue because those people can 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 01:16:26.520 --> 01:16:32.600 right now actually I understand yeah I'll write that down all right Paul last 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 01:16:36.800 --> 01:16:43.440 surprise no one to hear that man I don't have the same wouldn't characterize 01:16:43.440 --> 01:16:49.520 council and attitudes of the city the same way all right and I'll share with 01:16:49.520 --> 01:16:56.120 you you know so obvious observations that when I counsel is elected they're 01:16:56.120 --> 01:17:01.200 elected and they're reflecting what people want you know versus the 01:17:01.200 --> 01:17:04.880 alternatives that are presented to them and I suggest to you that it 01:17:04.880 --> 01:17:09.960 overwhelmingly people go down that proposal it's because they didn't want 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 01:17:14.720 --> 01:17:18.200 raft of statistics I've just a lot of doors that would suggest that the 01:17:18.200 --> 01:17:22.600 difference between what you know you see as obvious and what people aren't 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 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 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 01:17:34.960 --> 01:17:39.020 but it doesn't necessarily mean they don't want that and to develop they want 01:17:39.020 --> 01:17:45.480 then to develop in ways that are better building on the aspects of dead in bed 01:17:45.480 --> 01:17:49.680 they proceed to be special and so that then becomes even more special as they 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 01:17:54.400 --> 01:17:57.760 there's been an incentive proposed in the last five years it's been turned down 01:17:57.760 --> 01:18:03.480 so that characterization is just not born out by the facts but why is it true 01:18:03.480 --> 01:18:07.760 that you know in a council environment that you might perceive as hostile to 01:18:07.760 --> 01:18:09.920 business that they're approving incentive after incentive after 01:18:09.920 --> 01:18:13.440 incentive they're doing it because things that are brought to us reflect 01:18:13.440 --> 01:18:20.940 some you know pure economics plus some contribution or resonance with the 01:18:20.940 --> 01:18:27.040 character of Denton you know some you know they're bringing it's a little hard 01:18:27.040 --> 01:18:30.220 to define I mean you know but the things that make Denton special and you 01:18:30.220 --> 01:18:33.880 probably all know them without my saying it and they're looking for that they're 01:18:33.880 --> 01:18:39.040 not looking for cookie cutter suburban North Texas they're just not so you know 01:18:39.040 --> 01:18:43.800 the developers were smart about it and I would include people in this room no to 01:18:43.800 --> 01:18:47.240 bring things that build on that character that's it's it's hard to 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 01:18:54.400 --> 01:18:58.320 responding to the sentiment of the voters and the more that we can find the 01:18:58.320 --> 01:19:01.040 common ground we're going to be able to move forward you know there's the 01:19:01.040 --> 01:19:06.120 support for the downtown design plans huge a couple of big distinctions you 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 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 01:19:21.160 --> 01:19:25.240 would say look for the common ground with the population there's an appetite 01:19:25.240 --> 01:19:36.440 for Denton you know getting character development okay the final request I 01:19:36.440 --> 01:19:42.280 think is give yourself an opportunity to see that report and perhaps circulated 01:19:42.280 --> 01:19:47.680 to the returning members the 2025 members of the world as well the other 01:19:47.680 --> 01:19:51.760 thing that I would just note we started off in a conversation around trying to 01:19:51.760 --> 01:19:56.400 remove some redundancies of economic development boards and I think that 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 01:20:01.240 --> 01:20:07.520 conversations we want to agree on and can put our support behind I think that 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 01:20:16.800 --> 01:20:20.760 still have staff reports right 01:20:20.760 --> 01:20:26.840 we have seven minutes for staff reports 01:20:26.840 --> 01:20:37.280 on the month of December it's only one slide we attended the Dallas regional 01:20:37.280 --> 01:20:40.880 chamber breakfast and luncheon with the state economic development team and so 01:20:40.880 --> 01:20:44.480 the Dallas regional chamber invited all the economic development agencies in the 01:20:44.480 --> 01:20:48.200 region to attend a breakfast to meet with the state economic development team 01:20:48.200 --> 01:20:51.680 so clay Parker business recruitment specialist attended that meeting in 01:20:51.680 --> 01:20:56.560 Arlington and then I was invited to a private lunch with the DRC along with 01:20:56.560 --> 01:21:01.840 Sherman McKinney and Frisco to in Frisco actually to meet with the team so that 01:21:01.840 --> 01:21:04.480 was nice to catch up but they were really interested in learning more about 01:21:04.480 --> 01:21:08.040 didn't and of course it's always marketing right it's great to make those 01:21:08.040 --> 01:21:11.180 connections they're the ones that are sending us RFIs every month and we want 01:21:11.180 --> 01:21:13.960 them to ensure that they are selling didn't when they're talking to 01:21:13.960 --> 01:21:19.920 companies talking at the state level and so we also hosted a site tour a project 01:21:19.920 --> 01:21:23.760 server this was a lead that came in from a site selection firm in the Dallas 01:21:23.760 --> 01:21:27.200 Fort Worth region they contacted us at the beginning of December and said hey 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 01:21:30.760 --> 01:21:37.160 and so this is the thing the last week of Christmas clay myself and Jamie and 01:21:37.160 --> 01:21:42.600 Matilda hosted the team and they also went all over the state of Texas I think 01:21:42.600 --> 01:21:48.240 toward other cities that for a two-day period and so we're currently working on 01:21:48.240 --> 01:21:51.480 incentive proposal hopefully in February we'll be able to bring it to you for 01:21:51.480 --> 01:21:55.800 review we're working with our procurement legal and transportation 01:21:55.800 --> 01:21:59.800 departments to develop a mobility test pilots for the city the city of Austin 01:21:59.800 --> 01:22:03.440 is known for being a test bed for mobility startups and so they have 01:22:03.440 --> 01:22:08.000 assisted many EV related companies autonomous vehicle technology pilots in 01:22:08.000 --> 01:22:12.160 the city and so we're also working in that direction as well so Matilda is 01:22:12.160 --> 01:22:15.160 leading that effort and hopefully we'll be able to launch that sometime this 01:22:15.160 --> 01:22:20.000 year and on December 17th City Council approved hers one the terms one boundary 01:22:20.000 --> 01:22:25.160 and term amendment so they are on the same page so we're moving forward right 01:22:25.160 --> 01:22:30.080 now that means that we secured 50 million dollars of the next until 2041 01:22:30.080 --> 01:22:35.200 for TERS related and Senate projects so that was that was great it was a good 01:22:35.200 --> 01:22:38.480 start so that's all for December and actually I'm Kristen if you want to 01:22:38.480 --> 01:22:42.920 quickly go over the downtown small business utility grant program sure if 01:22:42.920 --> 01:22:46.160 it's okay I'll stand here Chris and Polita Main Street program manager you'll 01:22:46.160 --> 01:22:50.360 remember back in September we worked with the city manager's office to 01:22:50.360 --> 01:22:55.480 initiate the downtown small business utility grant and so we mailed out over 01:22:55.480 --> 01:22:59.920 500 letters we hosted in person and virtual sessions for everyone to 01:22:59.920 --> 01:23:04.440 understand how to process all of that working with the grants team we had 28 01:23:04.440 --> 01:23:07.160 businesses that were approved for the reimbursement so it was a reimbursement 01:23:07.160 --> 01:23:11.200 up to a thousand dollars the average reimbursement about seven hundred and 01:23:11.200 --> 01:23:16.760 forty three dollars so businesses downtown received their reimbursement on 01:23:16.760 --> 01:23:23.240 their December utility bill and so we spent a total of $20,000 for that 01:23:23.240 --> 01:23:39.960 utility grant all of the downtown businesses UPS update last meeting last 01:23:39.960 --> 01:23:45.980 month we talked about what happened with UPS so I was able to speak with their 01:23:45.980 --> 01:23:50.640 leadership you know a little history they've been around on Shady Oaks Drive 01:23:50.640 --> 01:23:57.200 since 1991 it was a 30,000 square foot facility over the last 34 years they 01:23:57.200 --> 01:24:02.280 only applied with the city for one commercial alteration permit 2003 was 01:24:02.280 --> 01:24:07.560 finished in 2004 they had not applied for any alterations in 20 years they had 01:24:07.560 --> 01:24:13.120 69 drivers at that warehouse and 50 warehouse loaders workers just general 01:24:13.120 --> 01:24:20.120 workers less than 50 in their warehouse they closed on October 7th 2024 part of 01:24:20.120 --> 01:24:25.760 the closed part of their national campaign called Network of the Future 01:24:25.760 --> 01:24:30.600 where they're closing 200 distribution facilities around the country they want 01:24:30.600 --> 01:24:34.520 to increase automation and reduce operational costs obviously they want to 01:24:34.520 --> 01:24:40.160 save some money through automation on this this was their five initiatives the one 01:24:40.160 --> 01:24:45.560 to focus on was other 200 facilities that closed around the country 70 have 01:24:45.560 --> 01:24:51.160 already been closed 200 are going to be closed and then an expansion which is 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 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 01:25:02.880 --> 01:25:06.960 second so why they leave them had a chance to speak with Nick DeAndre who's 01:25:06.960 --> 01:25:10.760 vice president public affairs for UPS he filled a lot of these calls from cities 01:25:10.760 --> 01:25:16.800 around the country no fault they loved him they want to write the UPS ship he 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 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 01:25:25.160 --> 01:25:29.480 love this the workers love their time here and then but they want to be more 01:25:29.480 --> 01:25:34.120 efficient focus on automation and their buildings for sale and they were 01:25:34.120 --> 01:25:37.480 looking for help so they were able to talk with John weather to stack and 01:25:37.480 --> 01:25:40.280 they've come back and told him that they're gonna hold on that building a 01:25:40.280 --> 01:25:43.880 little bit which leaves the door a little bit open for maybe that becomes 01:25:43.880 --> 01:25:46.840 an automated warehouse at some point but they own that building they're gonna 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 01:25:51.840 --> 01:25:55.800 like I said the warehouse workers or loaders or whoever was working there 01:25:55.800 --> 01:26:01.560 less than 50 employees there's 69 drivers 60 went to the independence 01:26:01.560 --> 01:26:06.360 facility which is their crown jewel down a fourth automation six went to Sherman 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 01:26:13.640 --> 01:26:18.800 recap it was asked about you know what happened with UPS was it arguing the 01:26:18.800 --> 01:26:21.920 city was the permits it wasn't any of that was just automation and they're 01:26:21.920 --> 01:26:26.640 going down that route to save some money in the future but with them holding the 01:26:26.640 --> 01:26:30.480 rights that building their hope is you know maybe they will retrofit that 01:26:30.480 --> 01:26:36.880 facility and come back that's where we are that hopefully every month we can 01:26:36.880 --> 01:26:40.160 give some updates on some business retention similar to this to give you 01:26:40.160 --> 01:26:45.080 guys some key nuggets what's going on everybody real quick I think last month 01:26:45.080 --> 01:26:50.800 my comment was that doesn't look at the issue here but going forward I still 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 01:26:56.680 --> 01:27:01.780 consider it if there is a decision that a department within the city of Denton 01:27:01.780 --> 01:27:09.920 makes on a business over a certain number of employees that as that decision 01:27:09.920 --> 01:27:12.960 is being made that they bring it to economic development to discuss that so 01:27:12.960 --> 01:27:17.640 that if there's something that economic development do to kind of offset that 01:27:17.640 --> 01:27:22.720 burden this group has the opportunity to hear that and I think that department 01:27:22.720 --> 01:27:28.320 head should present that you know to explain it really why they're saying 01:27:28.320 --> 01:27:32.040 what they're saying so 01:27:32.040 --> 01:27:39.600 and that may be part of Jamie's that's probably not an immediate deal okay 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 01:27:43.280 --> 01:27:47.600 that's making that decision to make that presentation here because they're making 01:27:47.600 --> 01:27:52.720 decisions based on rules and guidelines that they have that only their 01:27:52.720 --> 01:27:58.440 department knows about Rick thank you for bringing the this topic forward and 01:27:58.440 --> 01:28:04.880 the last week appreciate it Jamie thank you for anything else to be brought 01:28:04.880 --> 01:28:10.240 before the board only just brief comment not to talk now but you know we talked 01:28:10.240 --> 01:28:13.760 about the uniqueness of the square we talked you know we made comments over 01:28:13.760 --> 01:28:21.360 the last six months about issues on leasing I continue to open although the 01:28:21.360 --> 01:28:26.040 paper less but whenever articles are sent to me about then then I read them 01:28:26.040 --> 01:28:32.440 can we you know balling boards gone Andy's is gone voodoo I heard is not 01:28:32.440 --> 01:28:39.480 coming that was coming before is that true that's correct so that's three 01:28:39.480 --> 01:28:45.200 buildings on the square I've heard that there's you know obviously two of those 01:28:45.200 --> 01:28:48.160 businesses have common ownership I don't know if there's future businesses are 01:28:48.160 --> 01:28:54.920 really in the square associated with that so I guess my goal or my question is 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 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 01:29:03.200 --> 01:29:10.200 figure out how we stop or fix or help that area 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 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 01:29:18.560 --> 01:29:22.240 the issues behind the scenes right and so we have a strategy in place that 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 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 01:29:31.320 --> 01:29:34.400 probably gonna look at unique businesses right that are going to ensure that we 01:29:34.400 --> 01:29:38.800 keep our eccentric nature downtown that probably have a larger capital step 01:29:38.800 --> 01:29:46.080 behind them but regional and general that's something I'll do that it's a 01:29:46.080 --> 01:29:52.640 really good point and I would imagine those decisions yeah in the paper it's 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 01:29:57.600 --> 01:30:00.480 adverse factors that are affecting those businesses people don't want to go 01:30:00.480 --> 01:30:08.160 there my personal shopping patterns I don't go downtown much anymore and I 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 01:30:13.240 --> 01:30:16.840 want to support it and probably more than anybody 01:30:16.840 --> 01:30:26.520 next year any other completely take your point I just just have one data point 01:30:26.520 --> 01:30:31.200 and said I understand for brilliant board there's another one behind it so 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 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 01:30:46.480 --> 01:30:50.440 adjourn at this point thank you everyone Tony thank you for your service on this 01:30:50.440 --> 01:30:53.320 board appreciate you