1 00:00:00,000 --> 00:00:07,000 Okay, everybody. Well, welcome to the Economic Development Partnership board meeting. 2 00:00:07,000 --> 00:00:10,000 We'll go ahead and get started. A quorum is present. 3 00:00:10,000 --> 00:00:13,000 All we do in the introduction today because we don't have a chair. 4 00:00:13,000 --> 00:00:17,000 CVEGOR is no longer in the board. We have new board members today. 5 00:00:17,000 --> 00:00:27,000 Let's help welcome our new board members, Amy Bissette, who is now serving as the Ditton Chamber of Commerce seat. 6 00:00:27,000 --> 00:00:35,000 Ron Crockett, who is in the top 20 taxpayer seat. 7 00:00:35,000 --> 00:00:42,000 And Leo Morales in the Hispanic Chamber of Commerce seat. 8 00:00:42,000 --> 00:00:47,000 And Jeremy Fice was previously serving on the Chamber of Commerce seat, and now he's moved to the at-large seat. 9 00:00:47,000 --> 00:00:55,000 So he's kind of nickel-bet. 10 00:00:55,000 --> 00:01:02,000 Okay, so we have a sandwich a quorum, so I'll call the meeting to order at 1103 AM. 11 00:01:02,000 --> 00:01:04,000 Call for presentations from members of the public. 12 00:01:04,000 --> 00:01:11,000 We will now begin with presentations from members of the public. 13 00:01:11,000 --> 00:01:15,000 There are none, so we'll move forward. 14 00:01:15,000 --> 00:01:20,000 Now we will call items for considerations. 15 00:01:20,000 --> 00:01:30,000 We'll now begin with item A, EDP 25-009, receive nominations and elect a chair to the Economic Development Partnership Board. 16 00:01:30,000 --> 00:01:32,000 Amy Bissette. 17 00:01:32,000 --> 00:01:37,000 I'd like to nominate Brian Dantalk. My name is here today as chair. 18 00:01:37,000 --> 00:01:44,000 I'd second that. 19 00:01:44,000 --> 00:01:48,000 Okay, we have a second. 20 00:01:48,000 --> 00:02:04,000 Any other nominations or items for discussion? 21 00:02:04,000 --> 00:02:21,000 Okay, perfect. 22 00:02:21,000 --> 00:02:24,000 Okay, so do we have a vote? 23 00:02:24,000 --> 00:02:25,000 Yes. 24 00:02:25,000 --> 00:02:29,000 All in favor of Brian Dantalk as the chair? 25 00:02:29,000 --> 00:02:33,000 Any opposed? 26 00:02:33,000 --> 00:02:38,000 Great job, Brian. 27 00:02:38,000 --> 00:02:42,000 All right, you want me to take over then? 28 00:02:42,000 --> 00:02:46,000 I'll brush up on Robert's Rules of Order again. 29 00:02:46,000 --> 00:03:13,000 All right, consider item number EDP 25-010, receive nominations and elect a vice chair to the Economic Development Partnership Board. 30 00:03:13,000 --> 00:03:16,000 We have a nomination for Jeremy Fikes. Do I have a second? 31 00:03:16,000 --> 00:03:17,000 I second. 32 00:03:17,000 --> 00:03:20,000 We have a second for Mr. Ramsey. 33 00:03:20,000 --> 00:03:24,000 Do we have any other nominations? 34 00:03:24,000 --> 00:03:27,000 Any other nominations for vice chair? 35 00:03:27,000 --> 00:03:31,000 I should nominate Lee just to make it interesting. 36 00:03:31,000 --> 00:03:35,000 All right, we've got a nomination and a second. 37 00:03:35,000 --> 00:03:44,000 With no other nominations, can I get a vote for consent and approval? 38 00:03:44,000 --> 00:03:47,000 Like I said, it's been a minute. 39 00:03:47,000 --> 00:03:50,000 Any opposed? 40 00:03:50,000 --> 00:04:02,000 All right, motion passes. Mr. Fikes, you are now the vice chair. 41 00:04:02,000 --> 00:04:06,000 Where am I at here? 42 00:04:06,000 --> 00:04:14,000 All right. Item EDP 25-011, consider approval for April 9th, 2025. 43 00:04:14,000 --> 00:04:19,000 So last meeting minutes were in our packet. 44 00:04:19,000 --> 00:04:20,000 Second. 45 00:04:20,000 --> 00:04:23,000 We've got a motion to second. Can I get all in favor? 46 00:04:23,000 --> 00:04:25,000 Any opposed? 47 00:04:25,000 --> 00:04:27,000 All right, motion passes. 48 00:04:27,000 --> 00:04:29,000 Can I get a voice vote from everybody on those? 49 00:04:29,000 --> 00:04:30,000 Okay. 50 00:04:30,000 --> 00:04:33,000 There are just a couple of people saying aye. 51 00:04:33,000 --> 00:04:36,000 The new voters do not vote, right, because we were not here for that meeting. 52 00:04:36,000 --> 00:04:37,000 We vote, yeah. 53 00:04:37,000 --> 00:04:38,000 We vote. 54 00:04:38,000 --> 00:04:39,000 Okay. 55 00:04:39,000 --> 00:04:40,000 Approval of minutes. 56 00:04:40,000 --> 00:04:41,000 All right, we'll do it again. 57 00:04:41,000 --> 00:04:42,000 Approval of the minutes. 58 00:04:42,000 --> 00:04:45,000 Can everyone give us a loud, boisterous aye or no? 59 00:04:45,000 --> 00:04:46,000 Aye. 60 00:04:46,000 --> 00:04:47,000 All right. 61 00:04:47,000 --> 00:04:49,000 Does that satisfy counsel? 62 00:04:49,000 --> 00:04:50,000 Yes. 63 00:04:50,000 --> 00:04:51,000 Excellent. 64 00:04:51,000 --> 00:04:54,000 Thank you. 65 00:04:54,000 --> 00:04:59,000 Hey, don't nominate me. 66 00:04:59,000 --> 00:05:02,000 All right. 67 00:05:02,000 --> 00:05:27,000 EDP 25-012, consider making a recommendation to the city council for approval of an incentive agreement for US cold storage for a 60% property tax rebate for eight years and 75% sales tax rebate for the construction and equipping of the expanded facility under Chapter 380 of the local government code 68 00:05:27,000 --> 00:05:34,000 for an amount not to exceed $1,067,871. 69 00:05:34,000 --> 00:05:37,000 We have some backups. 70 00:05:37,000 --> 00:05:38,000 Good morning. 71 00:05:38,000 --> 00:05:39,000 My name is Erica Sullivan. 72 00:05:39,000 --> 00:05:48,000 I'm the economic development partner and administrator here with the city, and I'll be doing a presentation on the incentive application received from the United States cold storage. 73 00:05:48,000 --> 00:05:54,000 The United States cold storage is a leader in temperature controlled storage and transportation logistics. 74 00:05:54,000 --> 00:06:05,000 Many of the country's largest food providers such as Kraft, Butterball, and Bar S Foods, their existing debt and company that have 37 facilities in 13 states. 75 00:06:05,000 --> 00:06:08,000 The company has been operating for over 126 years. 76 00:06:08,000 --> 00:06:22,000 They started American Ice Company in 1899 and renamed to United States cold storage in 1920 and became a wholly owned subsidiary of John Swire and Sons in 1982. 77 00:06:22,000 --> 00:06:24,000 So some background on their prior incentive. 78 00:06:24,000 --> 00:06:33,000 In 2018, they received a performance based 50% cost share sales tax for construction and equipping of their facility. 79 00:06:33,000 --> 00:06:38,000 This is accomplished through a Texas direct payment through the State Council or public accounts. 80 00:06:38,000 --> 00:06:45,000 It allows businesses to source their purchases from anywhere in Texas to a specific location. 81 00:06:45,000 --> 00:06:47,000 In this case, it was 10. 82 00:06:47,000 --> 00:06:51,000 In 2020, they received their certificate of occupancy. 83 00:06:51,000 --> 00:07:02,000 I also want to note that they are a high end electric user generating over 1.5 megawatts per year, making them a top 25 customer for VET municipal electric. 84 00:07:02,000 --> 00:07:08,000 They received a growth rider from VET municipal electric at that time as well and on the growth rider. 85 00:07:08,000 --> 00:07:17,000 In 2023, we terminated the agreement because they did not obtain a Texas direct payment and filed to their Dallas location. 86 00:07:17,000 --> 00:07:27,000 So our finance department couldn't verify sales taxes or facility. 87 00:07:27,000 --> 00:07:30,000 The current incentive of request for the expansion. 88 00:07:30,000 --> 00:07:36,000 U.S. cold storage is examining multiple site locations, opportunities in Texas. 89 00:07:36,000 --> 00:07:46,000 One of the reasons they were looking at Denton as a potential location is for the support that they've received in the past with their facility to help their growth. 90 00:07:46,000 --> 00:07:56,000 This 100,000 square foot expansion is planned and the request includes the investment in the building, the expansion itself, machinery and equipment. 91 00:07:56,000 --> 00:08:00,000 Here's their current location at 3255 Jim Crystal. 92 00:08:00,000 --> 00:08:11,000 The current expansion will be on the same track to land this 45 acre site to the north and to the south of them. 93 00:08:11,000 --> 00:08:17,000 The key components of the application includes a $35 million capital investment of that $35 million, 94 00:08:17,000 --> 00:08:32,000 12 million is in business, 23 million is in business personal property and 172 new jobs will be created by the project with a weighted average wage of $50,583 for all the conditions. 95 00:08:32,000 --> 00:08:39,000 You can see here that over a four year period, 172 new jobs will be added. 96 00:08:39,000 --> 00:08:49,000 The jobs are approaching the county's average wage of $61,651 and then you can see in the second table this is the MIT living wage calculator 97 00:08:49,000 --> 00:09:02,000 and you can see where the U.S. cold storage $27.68 is higher for the company in the highlighted categories in the one adult quadrant and the two adults. 98 00:09:02,000 --> 00:09:08,000 Here you can see the economic impact report. I'm going to start with the right side of the page with jobs. 99 00:09:08,000 --> 00:09:21,000 So 172 direct jobs are created by the project of that, the indirect and induced spinoff will generate another nearly 112 jobs for a total of 284 jobs. 100 00:09:21,000 --> 00:09:30,000 Moving to the left side of the page, you have the benefits, the cost, the incentive leaving you with the net benefit, less incentives of $1.4 million. 101 00:09:30,000 --> 00:09:42,000 And over that 10 year period, the rate of return is 24.9 with a payback period, that's your nexus of your incentive and your net benefits is 4.8 years. 102 00:09:42,000 --> 00:09:49,000 So I'd like to highlight that. And for those of you that participated in the past in my presentation on the economic impact model, 103 00:09:49,000 --> 00:09:54,000 our model allows us to look at the expansion project plus the initial current facility. 104 00:09:54,000 --> 00:10:06,000 So the actual rate of return, if you look at the whole project, what's already existing and the expanded facility, is 90 percent rate of return with a payback period of 1.4 years. 105 00:10:06,000 --> 00:10:12,000 So we've talked about some of the benefits, quantitative, we're going to go over some of the qualitative benefits. 106 00:10:12,000 --> 00:10:18,000 So this is a business retention expansion. We're trying to grow businesses and helping them expand here in Denton. 107 00:10:18,000 --> 00:10:32,000 So 148 jobs are retained and 172 new jobs are planned. Cold storage is in our connected strategic growth area sector and they are key to the supply chain of cold storage. 108 00:10:32,000 --> 00:10:41,000 US cold storage is also a sustainable partner. Their CO2, according to their report, emission reduction of 11.4 percent. 109 00:10:41,000 --> 00:10:49,000 They also have a goal to reach net zero emissions by 2050 and they also have food, waste and sustainability programs. 110 00:10:49,000 --> 00:10:55,000 Again, they are a they do generate high utility usage. They didn't qualify for an economic growth rate at this time. 111 00:10:55,000 --> 00:11:00,000 Did you have to actually generate another additional megawatt? 112 00:11:00,000 --> 00:11:08,000 The DME said that they would look at the facility again once they were in operation if they think they might be close to that. 113 00:11:08,000 --> 00:11:11,000 Here you see the incentive and project revenue generation. 114 00:11:11,000 --> 00:11:19,000 The first table is a performance based 60 percent property tax rebate on improvements in business personal property for eight years. 115 00:11:19,000 --> 00:11:25,000 That's 981,970 sales and use tax rebate for construction at 75 percent. 116 00:11:25,000 --> 00:11:32,000 This is a one time estimating will come on in about a year or two after they receive a CEO for the 100,000 square foot expansion. 117 00:11:32,000 --> 00:11:38,000 That would be 85,901 for a cumulative incentive total of a little over a million. 118 00:11:38,000 --> 00:11:45,000 You'll see the city revenue that 40 percent on improvements in BPP for eight years and additional two years at 100 percent. 119 00:11:45,000 --> 00:11:52,000 And then the sales and use tax for construction rebate sales taxes we wouldn't otherwise receive through this program of 25 percent. 120 00:11:52,000 --> 00:11:59,000 That means it would equal 28,634 for a cumulative city total of a little over one million as well. 121 00:11:59,000 --> 00:12:04,000 And then on the bottom you can see the land improvements and business personal property valuation on that left side. 122 00:12:04,000 --> 00:12:10,000 You get the current valuation, the estimated increase and then the total valuation on the last three columns. 123 00:12:10,000 --> 00:12:20,000 You can see the revenue, the estimated increase in revenue from just the expansion alone and then the total estimated revenue on the project. 124 00:12:20,000 --> 00:12:27,000 So our incentive recommendation today is a performance based ad valorem tax rebate at 60 percent for eight years. 125 00:12:27,000 --> 00:12:33,000 Sales and use tax for construction rebate for the construction and equipping facility at 75 percent. 126 00:12:33,000 --> 00:12:38,000 The agreements will include valuation thresholds and caps as well as timely completion dates. 127 00:12:38,000 --> 00:12:47,000 And then once you receive an incentive at their category of jobs and valuation, it would make them eligible for the state program, the Texas Enterprise Zone program. 128 00:12:47,000 --> 00:12:54,000 We have six nominations per biennium and we have offered to nominate them should they pursue that. 129 00:12:54,000 --> 00:13:01,000 So the staff recommendation again is an eight year performance based chapter 380 grant not to exceed one million sixty seven eight seventy one. 130 00:13:01,000 --> 00:13:07,000 And the next steps, it's gone to city council for a closed meeting to give us direction to move forward. 131 00:13:07,000 --> 00:13:12,000 If you recommend it here, it would go back to city council for individual consideration. 132 00:13:12,000 --> 00:13:21,000 We're planning June 3rd if possible and then we would execute the agreement following that. 133 00:13:21,000 --> 00:13:24,000 With us today, we have two members from cold storage. 134 00:13:24,000 --> 00:13:27,000 We have Carlos Stern, vice president and regional manager. 135 00:13:27,000 --> 00:13:31,000 And then we have Arnold Tanaka, general manager of the Dutton location. 136 00:13:31,000 --> 00:13:37,000 We'll be happy to answer questions. 137 00:13:37,000 --> 00:13:43,000 Just a quick question. What happened on the termination of the agreement when we terminated in 2023? 138 00:13:43,000 --> 00:13:51,000 Okay, so it was just the sales and use tax construction since they didn't obtain the permit and we couldn't verify the sales tax as we terminated. 139 00:13:51,000 --> 00:13:55,000 So nothing was granted. Nothing was given. 140 00:13:55,000 --> 00:14:01,000 Nothing initiated at that point. Are they able to retroactive and do that? 141 00:14:01,000 --> 00:14:12,000 I don't believe so. I'm looking to our legal counsel to see if they retroactively get sales and use tax construction. 142 00:14:12,000 --> 00:14:15,000 The state comptroller can go back multiple years and audit. 143 00:14:15,000 --> 00:14:20,000 So I would imagine possible, but I don't know. We'd have to look into that. 144 00:14:20,000 --> 00:14:24,000 So by them filing it in Dallas, does that mean the money went to Dallas as opposed to here? 145 00:14:24,000 --> 00:14:27,000 They filed jointly so we couldn't separate it. 146 00:14:27,000 --> 00:14:37,000 So on the confidential reports from finance, they received two codes, 26 and 28, one for the regular sales tax, one for the Texas Direct Pay Permit. 147 00:14:37,000 --> 00:14:39,000 They couldn't verify on either. They couldn't fund them at all. 148 00:14:39,000 --> 00:14:46,000 So we never received any revenue from the sales tax that went to Dallas, so therefore there is no... 149 00:14:46,000 --> 00:14:51,000 We can't reimburse or cause share funds we don't receive to be good stewards, certainly. 150 00:14:51,000 --> 00:14:55,000 And they didn't fulfill the agreement by not obtaining a Texas Direct Pay Permit. 151 00:14:55,000 --> 00:14:59,000 So going forward, is there a risk of that on this? No one? 152 00:14:59,000 --> 00:15:04,000 Well, again, we've provided the application. We provided technical assistance on that. 153 00:15:04,000 --> 00:15:09,000 I know they are also using a consultant. We provided them with the same genovus, the same information. 154 00:15:09,000 --> 00:15:20,000 I just had a quick question. I mean, you guys have something in place now to make sure that if we approve that, that we've got stop blocks in place so that doesn't happen? 155 00:15:20,000 --> 00:15:28,000 I think that is confirmed, but I think having these two colleges be a part of the conversation with our finance team up in... 156 00:15:28,000 --> 00:15:33,000 I support it. I just want to make sure that if we go through this approval again, you know what I'm saying, 157 00:15:33,000 --> 00:15:36,000 we've got to ensure that the camera has got that. 158 00:15:36,000 --> 00:15:42,000 I couldn't answer that question just in terms of making an agreement right here. 159 00:15:42,000 --> 00:15:48,000 I'm saying that there's something in place, but I don't think that that's out of the question. 160 00:15:48,000 --> 00:15:55,000 So based on their structure, legally they can pay either in Dallas or here. It doesn't matter? 161 00:15:55,000 --> 00:15:58,000 It's how they file, and I know they file a little bit differently. 162 00:15:58,000 --> 00:16:08,000 They report a little bit differently than most of our taxpayers. I did find that out in the process. They report ahead. They prepay. 163 00:16:08,000 --> 00:16:18,000 We used to probably speak a little bit better than this, but my understanding is in order for them to be able to actually collect the sales tax in Denver from sourcing construction materials, 164 00:16:18,000 --> 00:16:24,000 they have to set up a specific permit, and that's what didn't occur. 165 00:16:24,000 --> 00:16:35,000 [inaudible] 166 00:16:35,000 --> 00:16:39,000 It's extremely easy to administer once they set up that Texas Direct Pay Permit. 167 00:16:39,000 --> 00:16:49,000 Like I said, it appears on a separate code, and it's set up before the financial service review, and we've done that for several, for Winko and for O'Reilly. 168 00:16:49,000 --> 00:16:53,000 Can you maybe go back to that summary, because that's just unfortunate, right? 169 00:16:53,000 --> 00:16:54,000 Yes. 170 00:16:54,000 --> 00:16:56,000 I just want to make sure. 171 00:16:56,000 --> 00:17:06,000 So there's an ad morum for 60%, and then there's 75% one time for estimating year two after they receive their CEO of that $85,900. 172 00:17:06,000 --> 00:17:16,000 [inaudible] 173 00:17:16,000 --> 00:17:19,000 Any other questions? 174 00:17:19,000 --> 00:17:21,000 I'll move for approval. 175 00:17:21,000 --> 00:17:23,000 I got a motion for approval. 176 00:17:23,000 --> 00:17:25,000 Can I get a second for approval? 177 00:17:25,000 --> 00:17:26,000 Second. 178 00:17:26,000 --> 00:17:27,000 Second? 179 00:17:27,000 --> 00:17:28,000 I got a motion and a second. 180 00:17:28,000 --> 00:17:30,000 Any discussion? 181 00:17:30,000 --> 00:17:31,000 Any further discussion? 182 00:17:31,000 --> 00:17:32,000 All right. 183 00:17:32,000 --> 00:17:33,000 Can I get a vote? 184 00:17:33,000 --> 00:17:34,000 All in favor, say aye. 185 00:17:34,000 --> 00:17:36,000 Aye. 186 00:17:36,000 --> 00:17:38,000 Any opposed? 187 00:17:38,000 --> 00:17:39,000 All right. 188 00:17:39,000 --> 00:17:42,000 I'm stating just to be consistent as I get another fight out. 189 00:17:42,000 --> 00:17:43,000 Go ahead. 190 00:17:43,000 --> 00:17:44,000 I'm supporting. 191 00:17:44,000 --> 00:17:45,000 Good. 192 00:17:45,000 --> 00:17:46,000 Good. 193 00:17:46,000 --> 00:17:48,000 With that, the motion passes. 194 00:17:48,000 --> 00:17:51,000 The board makes a recommendation to approve. 195 00:17:51,000 --> 00:17:54,000 Thank you for choosing them to expand it. 196 00:17:54,000 --> 00:18:00,000 [inaudible] 197 00:18:00,000 --> 00:18:04,000 Now for item EDP 25-013. 198 00:18:04,000 --> 00:18:17,000 Consider making a recommendation to city council for approval of an incentive agreement for Mayday Manufacturing Company for a 60% property tax rebate for 10 years and an expansion grant under Chapter 3A. 199 00:18:17,000 --> 00:18:26,000 With a local government code, they amount not to exceed $577,944. 200 00:18:26,000 --> 00:18:27,000 Yep. 201 00:18:27,000 --> 00:18:29,000 Backup materials. 202 00:18:29,000 --> 00:18:38,000 [inaudible] 203 00:18:38,000 --> 00:18:50,000 [inaudible] 204 00:18:50,000 --> 00:18:51,000 A little bit of background. 205 00:18:51,000 --> 00:18:58,000 Mayday Manufacturing was founded 49 years ago. 206 00:18:58,000 --> 00:19:08,000 It is a world leader in building and manufacturing of space kitchens, kins, seas, and turned-out parts. 207 00:19:08,000 --> 00:19:15,000 They have created over 1,000 different part numbers of hundreds of different companies from 18 countries. 208 00:19:15,000 --> 00:19:25,000 In 2016, they were acquired by Esco Technologies alongside the CapEx plating shop HiTech Finishing, which is actually part of the family business. 209 00:19:25,000 --> 00:19:32,000 In 2022, HiTech was absorbed by Mayday and become a part of their business. 210 00:19:32,000 --> 00:19:35,000 Another context for a previous expansion. 211 00:19:35,000 --> 00:19:39,000 They were originally incentivized in 2012. 212 00:19:39,000 --> 00:19:42,000 At that point in time, that was an $8.5 million expansion. 213 00:19:42,000 --> 00:19:50,000 [inaudible] 214 00:19:50,000 --> 00:19:53,000 That was a 10-year deal that expired after 10 years. 215 00:19:53,000 --> 00:20:06,000 In March of 2025, just two months ago, staff received an application from Mayday for a new expansion that is due to increased demand and trying to improve their capacity to meet their clients' demands. 216 00:20:06,000 --> 00:20:11,000 They're planning to expand their facility footprint by 45,000 square feet. 217 00:20:11,000 --> 00:20:23,000 The plan is to ideally break ground between the Y of this year and ideally finish construction sometime between December of 2016 and February of 2016. 218 00:20:23,000 --> 00:20:28,000 Just to put you in context of where we are, this is at 3100 Jim Crystal Road. 219 00:20:28,000 --> 00:20:30,000 That's our current operations. 220 00:20:30,000 --> 00:20:35,000 That's right down to 380 and off the road to 35. 221 00:20:35,000 --> 00:20:37,000 This is what we currently have happening there. 222 00:20:37,000 --> 00:20:41,000 It's a current operation both on the outside and inside. 223 00:20:41,000 --> 00:20:48,000 And in the top right, once again, if you look at that star in the outline, the red lines there, that is the planned expansion. 224 00:20:48,000 --> 00:20:58,000 Basically, just put it in the footprint, make it a little bit bigger with that 45,000 square feet expand operations. 225 00:20:58,000 --> 00:21:07,000 The similar benefits to the last proposal, the business retention and expansion deal, it supports the industry manufacturing leader within the Denton region. 226 00:21:07,000 --> 00:21:17,000 Additionally, they play a pretty integral role within the aerospace supply chain, working with a variety of clients in a variety of parts, multiple different nations. 227 00:21:17,000 --> 00:21:20,000 And it also helps out with the local workforce. 228 00:21:20,000 --> 00:21:26,000 They employ around 400 at their Denton facility with a mean salary that's greater than the city's average. 229 00:21:26,000 --> 00:21:33,000 So to be able to support those existing jobs as long as it's alongside some of these new jobs. 230 00:21:33,000 --> 00:21:38,000 So the expansion itself would be $14.5 million. 231 00:21:38,000 --> 00:21:55,000 That would be divided between $9 million in terms of construction improvements, $5.5 million for business personal property, and then directly that would help support 50 new jobs for May Day. 232 00:21:55,000 --> 00:22:04,000 And this gives you a summary table similar to the last presentation of current valuation, current revenue, and how this would help increase. 233 00:22:04,000 --> 00:22:19,000 So outside of that $14.5 million we've already talked about, basically what that leads to is a total of almost the sky of $85,000 in annual tax revenue added, bringing them to a total of $281,000. 234 00:22:19,000 --> 00:22:31,000 That's revenue between real and business personal property. And the incentive terms that we're specifically proposing here is a 60% rebate on these new improvements in BPP. 235 00:22:31,000 --> 00:22:36,000 Again, that's added value. So we're only incentivizing basically what the expenses are. 236 00:22:36,000 --> 00:22:44,000 So the estimated total for that over the 10-year deal is $552,945. 237 00:22:44,000 --> 00:22:56,000 Alongside that, we're considering a direct expansion grant of $25,000, bringing the total incentive number to $577,000. 238 00:22:56,000 --> 00:23:09,000 Some of that job and wage information for those 50 new jobs that you're talking about includes an annual payroll just over $27 million, salaries ranging from $45,000 to $65,000. 239 00:23:09,000 --> 00:23:25,000 And you get a range of roles there for their different options between platers, paints, quality control, max effects, geniuses, just expanding operations and helping with the same activities. 240 00:23:25,000 --> 00:23:33,000 And then here's that same economic impact report. It gives you an idea of on the expansion alone, what the payback period and the return is. 241 00:23:33,000 --> 00:23:49,000 Specifically, Impact Data Sorts estimates that this would be a 4.3-year payback period with a 21.3% rate of return and net benefits less incentives of $552,000, a little bit more than that. 242 00:23:49,000 --> 00:24:04,000 Again, like Erica said, we have the option to include retention as a part of this calculation, and we consider this a retention deal. That payback period drops to 1.2 years, and it's a 77.7% rate of return. 243 00:24:04,000 --> 00:24:20,000 So staff recommendation is option number one, a 60% rebate on new business version of property and real property taxes, 10 years up to $552,924, and a $25,000 expansion grant. 244 00:24:20,000 --> 00:24:35,000 And that staff recommendation drops to number one. The next steps, very similarly, would be City Council and individual consideration on June 3rd, followed by the execution of new business. Any questions? 245 00:24:35,000 --> 00:24:49,000 And I'll also mention real quick, we also do additionally have Corey Peeples, the Director of Finance, and Chad Leach, the Senior VP and General Manager from Mayday here. In case any of the questions are too tough or... 246 00:24:49,000 --> 00:24:52,000 Welcome. Thank you. 247 00:24:52,000 --> 00:25:03,000 I don't have a question, but I do have a comment. This particular company has put substantial money in the LeBron Career and Technology Center up north of Loop 288. 248 00:25:03,000 --> 00:25:15,000 And the last time I knew, when I was previously on the board and on that committee up there, they were offering scholarships to students to come work for them, and they would put them through college over the four-year period. 249 00:25:15,000 --> 00:25:21,000 So they do substantial other things to help the economy in this community. Very good partner. 250 00:25:21,000 --> 00:25:36,000 I'd like to add to that, you know, when they came to town, they used local contractors to build their expansion when they came to town, which means a lot to our community and a wonderful company to work with. 251 00:25:36,000 --> 00:25:46,000 If you've ever seen a Navy jet slam on a carrier, they make the landing gear for them. That's amazing. 252 00:25:46,000 --> 00:25:52,000 Thank you guys for staying in our community. 253 00:25:52,000 --> 00:26:01,000 So I got a comment. I gotta be creative on how I'm going to word this because it's not specific to this one, but I've got it, I think, under this deal. 254 00:26:01,000 --> 00:26:16,000 If we have a proposal that's coming through and we have a history of not using one of the incentives or not fulfilling the agreement, I think we should show the return on investment two ways. 255 00:26:16,000 --> 00:26:32,000 One, if it includes both of the incentives or what it is if they don't fulfill their obligation on IE sales and we just pay the other to see if it's materially different. 256 00:26:32,000 --> 00:26:41,000 I think the council would appreciate to see that to make sure that one's not slanted and when you put them together, it is more of a return. 257 00:26:41,000 --> 00:26:47,000 Kind of gives you a band of risk. Right. 258 00:26:47,000 --> 00:26:55,000 If we give it all to them, but then they meet the criteria of one and they don't the other and the two combined gives you a point in return. 259 00:26:55,000 --> 00:27:05,000 And then but one gives you a bigger, a smaller return as a city. You know, it could change the decision making process when it gets to council or whatever. 260 00:27:05,000 --> 00:27:23,000 Right now, since we're under this topic, I'm talking in general terms, but I think we all know what is bringing what made me think of that. 261 00:27:23,000 --> 00:27:35,000 I'm just trying to start the legal aspect on the corner of the table. 262 00:27:35,000 --> 00:27:42,000 So I have a motion to approve or to recommend the approval to city council. 263 00:27:42,000 --> 00:27:54,000 Second second second. All right. So I got a motion and a second. So all do I have any further discussion. 264 00:27:54,000 --> 00:27:59,000 All in favor of the motion, please say aye. 265 00:27:59,000 --> 00:28:03,000 Any opposed. 266 00:28:03,000 --> 00:28:14,000 Motion passes. Yeah. 267 00:28:14,000 --> 00:28:20,000 Thank you. Thanks. Thank you. Thank you. 268 00:28:20,000 --> 00:28:36,000 Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. 269 00:28:36,000 --> 00:28:51,000 Hello. Good morning. 270 00:28:51,000 --> 00:29:06,000 Good morning. 271 00:29:06,000 --> 00:29:21,000 Thank you. 272 00:29:21,000 --> 00:29:36,000 Thank you. 273 00:29:36,000 --> 00:29:51,000 Thank you. 274 00:29:51,000 --> 00:30:06,000 Thank you. 275 00:30:06,000 --> 00:30:21,000 Thank you. 276 00:30:21,000 --> 00:30:47,000 Thank you. 277 00:30:47,000 --> 00:31:02,000 Thank you. 278 00:31:02,000 --> 00:31:17,000 Thank you. 279 00:31:17,000 --> 00:31:32,000 Thank you. 280 00:31:32,000 --> 00:31:48,000 Thank you. 281 00:31:48,000 --> 00:32:03,000 Thank you. 282 00:32:03,000 --> 00:32:18,000 Thank you. 283 00:32:18,000 --> 00:32:33,000 Thank you. 284 00:32:33,000 --> 00:32:48,000 Thank you. 285 00:32:48,000 --> 00:33:03,000 Thank you. 286 00:33:03,000 --> 00:33:18,000 Thank you. 287 00:33:18,000 --> 00:33:33,000 Thank you. 288 00:33:33,000 --> 00:33:48,000 Thank you. 289 00:33:48,000 --> 00:34:03,000 Thank you. 290 00:34:03,000 --> 00:34:18,000 Thank you. 291 00:34:18,000 --> 00:34:33,000 Thank you. 292 00:34:33,000 --> 00:34:48,000 Thank you. 293 00:34:48,000 --> 00:35:03,000 Thank you. 294 00:35:03,000 --> 00:35:18,000 Thank you. 295 00:35:18,000 --> 00:35:33,000 Thank you. 296 00:35:33,000 --> 00:35:48,000 Thank you. 297 00:35:48,000 --> 00:36:03,000 Thank you. 298 00:36:03,000 --> 00:36:18,000 Thank you. 299 00:36:18,000 --> 00:36:33,000 Thank you. 300 00:36:33,000 --> 00:36:48,000 Thank you. 301 00:36:48,000 --> 00:37:03,000 Thank you. 302 00:37:03,000 --> 00:37:18,000 Thank you. 303 00:37:18,000 --> 00:37:33,000 Thank you. 304 00:37:33,000 --> 00:37:41,000 Thank you. 305 00:37:41,000 --> 00:38:09,000 Thank you. 306 00:38:09,000 --> 00:38:24,000 Thank you. 307 00:38:24,000 --> 00:38:39,000 Thank you. 308 00:38:39,000 --> 00:38:54,000 Thank you. 309 00:38:54,000 --> 00:39:09,000 Thank you. 310 00:39:09,000 --> 00:39:24,000 Thank you. 311 00:39:24,000 --> 00:39:38,000 Thank you. 312 00:39:38,000 --> 00:39:39,000 Thank you. 313 00:39:39,000 --> 00:39:40,000 Thank you. 314 00:39:40,000 --> 00:39:41,000 Thank you. 315 00:39:41,000 --> 00:39:42,000 Thank you. 316 00:39:42,000 --> 00:40:08,000 Thank you. 317 00:40:08,000 --> 00:40:23,000 Thank you. 318 00:40:23,000 --> 00:40:24,000 Thank you. 319 00:40:24,000 --> 00:40:25,000 Thank you. 320 00:40:25,000 --> 00:40:26,000 Thank you. 321 00:40:26,000 --> 00:40:27,000 Thank you. 322 00:40:27,000 --> 00:40:28,000 Thank you. 323 00:40:28,000 --> 00:40:39,000 Thank you. 324 00:40:39,000 --> 00:41:01,000 Thank you. 325 00:41:01,000 --> 00:41:09,000 Thank you. 326 00:41:09,000 --> 00:41:31,000 Thank you. 327 00:41:31,000 --> 00:41:46,000 Thank you. 328 00:41:46,000 --> 00:42:01,000 Thank you. 329 00:42:01,000 --> 00:42:16,000 Thank you. 330 00:42:16,000 --> 00:42:31,000 Thank you. 331 00:42:31,000 --> 00:42:46,000 Thank you. 332 00:42:46,000 --> 00:43:01,000 Thank you. 333 00:43:01,000 --> 00:43:16,000 Thank you. 334 00:43:16,000 --> 00:43:30,000 Thank you. 335 00:43:30,000 --> 00:43:32,000 Thank you. 336 00:43:32,000 --> 00:43:33,000 Thank you. 337 00:44:00,000 --> 00:44:01,000 Thank you. 338 00:44:01,000 --> 00:44:10,000 Thank you. 339 00:44:10,000 --> 00:44:11,000 Thank you. 340 00:44:30,000 --> 00:44:32,000 Thank you. 341 00:44:32,000 --> 00:44:33,000 Thank you. 342 00:44:33,000 --> 00:44:34,000 Thank you. 343 00:44:34,000 --> 00:45:00,000 Thank you. 344 00:45:00,000 --> 00:45:16,000 Thank you. 345 00:45:16,000 --> 00:45:31,000 Thank you. 346 00:45:31,000 --> 00:45:46,000 Thank you. 347 00:45:46,000 --> 00:46:01,000 Thank you. 348 00:46:01,000 --> 00:46:16,000 Thank you. 349 00:46:16,000 --> 00:46:32,000 Thank you. 350 00:46:32,000 --> 00:46:47,000 Thank you. 351 00:46:47,000 --> 00:47:02,000 Thank you. 352 00:47:02,000 --> 00:47:03,000 Thank you. 353 00:47:03,000 --> 00:47:04,000 Thank you. 354 00:47:04,000 --> 00:47:05,000 Thank you. 355 00:47:05,000 --> 00:47:20,000 Thank you. 356 00:47:20,000 --> 00:47:35,000 Thank you. 357 00:47:35,000 --> 00:47:57,000 Thank you. 358 00:47:57,000 --> 00:48:13,000 Thank you. 359 00:48:13,000 --> 00:48:14,000 Thank you. 360 00:48:27,000 --> 00:48:49,000 Thank you. 361 00:48:49,000 --> 00:48:50,000 Thank you. 362 00:48:50,000 --> 00:48:58,000 Thank you. 363 00:48:58,000 --> 00:48:59,000 Thank you. 364 00:48:59,000 --> 00:49:00,000 Thank you. 365 00:49:00,000 --> 00:49:22,000 Thank you. 366 00:49:22,000 --> 00:49:37,000 Thank you. 367 00:49:37,000 --> 00:49:38,000 Thank you. 368 00:49:38,000 --> 00:49:53,000 Thank you. 369 00:49:53,000 --> 00:50:08,000 Thank you. 370 00:50:08,000 --> 00:50:23,000 Thank you. 371 00:50:23,000 --> 00:50:38,000 Thank you. 372 00:50:38,000 --> 00:50:53,000 Thank you. 373 00:50:53,000 --> 00:51:08,000 Thank you. 374 00:51:08,000 --> 00:51:09,000 Thank you. 375 00:51:09,000 --> 00:51:24,000 Thank you. 376 00:51:24,000 --> 00:51:25,000 Thank you. 377 00:51:25,000 --> 00:51:26,000 Thank you. 378 00:51:26,000 --> 00:51:41,000 Thank you. 379 00:51:41,000 --> 00:51:56,000 Thank you. 380 00:51:56,000 --> 00:51:57,000 Thank you. 381 00:51:57,000 --> 00:52:12,000 Thank you. 382 00:52:12,000 --> 00:52:13,000 Thank you. 383 00:52:13,000 --> 00:52:14,000 Thank you. 384 00:52:14,000 --> 00:52:38,000 Thank you. 385 00:52:38,000 --> 00:52:55,000 Thank you. 386 00:52:55,000 --> 00:52:56,000 Thank you. 387 00:53:08,000 --> 00:53:30,000 Thank you. 388 00:53:30,000 --> 00:53:31,000 Thank you. 389 00:53:38,000 --> 00:53:39,000 Thank you. 390 00:53:39,000 --> 00:53:40,000 Thank you. 391 00:53:40,000 --> 00:53:41,000 Thank you. 392 00:53:41,000 --> 00:53:42,000 Thank you. 393 00:53:42,000 --> 00:53:43,000 Thank you. 394 00:53:43,000 --> 00:53:44,000 Thank you. 395 00:53:44,000 --> 00:54:11,000 Thank you. 396 00:54:11,000 --> 00:54:21,000 Thank you. 397 00:54:41,000 --> 00:54:56,000 Thank you. 398 00:54:56,000 --> 00:54:57,000 Thank you. 399 00:54:57,000 --> 00:54:58,000 Thank you. 400 00:54:58,000 --> 00:54:59,000 Thank you. 401 00:54:59,000 --> 00:55:14,000 Thank you. 402 00:55:14,000 --> 00:55:15,000 Thank you. 403 00:55:15,000 --> 00:55:16,000 Thank you. 404 00:55:16,000 --> 00:55:17,000 Thank you. 405 00:55:17,000 --> 00:55:18,000 Thank you. 406 00:55:18,000 --> 00:55:19,000 Thank you. 407 00:55:19,000 --> 00:55:34,000 Thank you. 408 00:55:34,000 --> 00:55:49,000 Thank you. 409 00:55:49,000 --> 00:56:04,000 Thank you. 410 00:56:04,000 --> 00:56:19,000 Thank you. 411 00:56:19,000 --> 00:56:34,000 Thank you. 412 00:56:34,000 --> 00:56:49,000 Thank you. 413 00:56:49,000 --> 00:57:04,000 Thank you. 414 00:57:04,000 --> 00:57:05,000 Thank you. 415 00:57:05,000 --> 00:57:06,000 Thank you. 416 00:57:06,000 --> 00:57:19,000 Thank you. 417 00:57:19,000 --> 00:57:38,000 Thank you. 418 00:57:38,000 --> 00:57:53,000 Thank you. 419 00:57:53,000 --> 00:57:54,000 Thank you. 420 00:57:54,000 --> 00:58:08,000 Thank you. 421 00:58:08,000 --> 00:58:09,000 Thank you. 422 00:58:24,000 --> 00:58:45,000 Thank you. 423 00:58:45,000 --> 00:58:46,000 Thank you. 424 00:58:54,000 --> 00:58:55,000 Thank you. 425 00:59:24,000 --> 00:59:25,000 Thank you. 426 00:59:25,000 --> 00:59:26,000 Thank you. 427 00:59:26,000 --> 00:59:27,000 Thank you. 428 00:59:27,000 --> 00:59:28,000 Thank you. 429 00:59:28,000 --> 00:59:29,000 Thank you. 430 00:59:29,000 --> 00:59:30,000 Thank you. 431 00:59:30,000 --> 00:59:55,000 Thank you. 432 00:59:55,000 --> 01:00:14,000 Thank you. 433 01:00:14,000 --> 01:00:29,000 Thank you. 434 01:00:29,000 --> 01:00:44,000 Thank you. 435 01:00:44,000 --> 01:00:45,000 Thank you. 436 01:00:45,000 --> 01:00:46,000 Thank you. 437 01:00:46,000 --> 01:01:01,000 Thank you. 438 01:01:01,000 --> 01:01:16,000 Thank you. 439 01:01:16,000 --> 01:01:31,000 Thank you. 440 01:01:31,000 --> 01:01:32,000 Thank you. 441 01:01:32,000 --> 01:01:33,000 Thank you. 442 01:01:33,000 --> 01:01:48,000 Thank you. 443 01:01:48,000 --> 01:01:49,000 Thank you. 444 01:02:03,000 --> 01:02:04,000 Thank you. 445 01:02:04,000 --> 01:02:05,000 Thank you. 446 01:02:05,000 --> 01:02:06,000 Thank you. 447 01:02:06,000 --> 01:02:07,000 Thank you. 448 01:02:07,000 --> 01:02:08,000 Thank you. 449 01:02:08,000 --> 01:02:09,000 Thank you. 450 01:02:09,000 --> 01:02:34,000 Thank you. 451 01:02:34,000 --> 01:02:53,000 Thank you. 452 01:02:53,000 --> 01:03:05,000 Thank you. 453 01:03:05,000 --> 01:03:06,000 Thank you. 454 01:03:23,000 --> 01:03:24,000 Thank you. 455 01:03:24,000 --> 01:03:25,000 Thank you. 456 01:03:25,000 --> 01:03:26,000 Thank you. 457 01:03:26,000 --> 01:03:27,000 Thank you. 458 01:03:27,000 --> 01:03:28,000 Thank you. 459 01:03:28,000 --> 01:03:53,000 Thank you. 460 01:03:53,000 --> 01:03:54,000 Thank you. 461 01:03:54,000 --> 01:03:55,000 Thank you. 462 01:03:55,000 --> 01:03:56,000 Thank you. 463 01:03:56,000 --> 01:03:57,000 Thank you. 464 01:03:57,000 --> 01:03:58,000 thank you. 465 01:03:58,000 --> 01:03:59,000 Thank you. 466 01:03:59,000 --> 01:04:00,000 Thank you. 467 01:04:00,000 --> 01:04:01,000 Thank you. 468 01:04:01,000 --> 01:04:02,000 Thank you. 469 01:04:02,000 --> 01:04:03,000 Thank you. 470 01:04:03,000 --> 01:04:28,000 Thank you. 471 01:04:28,000 --> 01:04:33,000 Thank you. 472 01:04:58,000 --> 01:04:59,000 Thank you. 473 01:05:28,000 --> 01:05:29,000 Thank you. 474 01:05:29,000 --> 01:05:30,000 Thank you. 475 01:05:30,000 --> 01:05:31,000 Thank you. 476 01:05:31,000 --> 01:05:32,000 Thank you. 477 01:05:32,000 --> 01:05:33,000 Thank you. 478 01:05:33,000 --> 01:05:34,000 Thank you. 479 01:05:34,000 --> 01:05:59,000 Thank you. 480 01:05:59,000 --> 01:06:18,000 Thank you. 481 01:06:18,000 --> 01:06:19,000 Thank you. 482 01:06:29,000 --> 01:06:30,000 Thank you. 483 01:06:30,000 --> 01:06:31,000 Thank you. 484 01:06:31,000 --> 01:06:32,000 Thank you. 485 01:06:32,000 --> 01:06:33,000 Thank you. 486 01:06:33,000 --> 01:06:34,000 Thank you. 487 01:06:34,000 --> 01:06:59,000 Thank you. 488 01:06:59,000 --> 01:07:00,000 Thank you. 489 01:07:00,000 --> 01:07:01,000 Thank you. 490 01:07:01,000 --> 01:07:02,000 Thank you. 491 01:07:02,000 --> 01:07:03,000 Thank you. 492 01:07:03,000 --> 01:07:04,000 Thank you. 493 01:07:33,000 --> 01:07:35,000 Thank you. 494 01:07:35,000 --> 01:07:36,000 Thank you. 495 01:07:36,000 --> 01:07:37,000 Thank you. 496 01:07:37,000 --> 01:07:38,000 Thank you. 497 01:07:38,000 --> 01:07:39,000 Thank you. 498 01:07:39,000 --> 01:07:40,000 Thank you. 499 01:07:40,000 --> 01:08:06,000 Thank you. 500 01:08:06,000 --> 01:08:12,000 Thank you. 501 01:08:36,000 --> 01:08:39,840 But where those leads are generated from is going to be different and closer. 502 01:08:39,840 --> 01:08:42,640 I show how much it's been vetted or not. 503 01:08:42,640 --> 01:08:46,120 Second thing I'd say is talking about utilities. 504 01:08:46,120 --> 01:08:50,320 Scott McDonald, he's on the curve here. 505 01:08:50,320 --> 01:08:52,200 He's working hard on that. 506 01:08:52,200 --> 01:08:56,960 There's a large sewer project that we're actually involved in with the city. 507 01:08:56,960 --> 01:09:01,840 And Scott McDonald and the utility departments are getting ahead of the curve. 508 01:09:01,840 --> 01:09:06,920 They're looking at joint, how the city can work with developers and 509 01:09:06,920 --> 01:09:12,000 fund those things together on oversizing and working on getting the easements. 510 01:09:12,000 --> 01:09:13,320 We're working on a project right now. 511 01:09:13,320 --> 01:09:18,000 We're going and getting all the easements for a joint project with us in the city. 512 01:09:18,000 --> 01:09:22,760 And the sewer line, we've run all the calculations for our whole sewer basin. 513 01:09:22,760 --> 01:09:30,320 So Scott's doing a really good job of looking at a bigger picture than just one project. 514 01:09:30,320 --> 01:09:34,640 And he's looking at what the future land use plans are in those areas. 515 01:09:34,640 --> 01:09:39,440 And the utility department is too, sizing these utilities for 516 01:09:39,440 --> 01:09:44,820 that future land use of stuff that could be an ETJ, could be in the city limits. 517 01:09:44,820 --> 01:09:47,800 And he's doing a great job of planning that. 518 01:09:47,800 --> 01:09:50,840 Some of those things are gonna be before city council soon. 519 01:09:50,840 --> 01:09:53,560 And we're gonna really be able to see if what, 520 01:09:53,560 --> 01:09:56,240 cuz what you're saying is happening right now. 521 01:09:56,240 --> 01:10:00,720 And so we'll see that support which I believe it's kind of a no brainer. 522 01:10:00,720 --> 01:10:04,000 I think we'll see the support from council on these things. 523 01:10:04,000 --> 01:10:09,720 The second thing is on water, we're looking at some of these districts that 524 01:10:09,720 --> 01:10:14,720 are outside in the ETJ, mud districts and those kind of things. 525 01:10:14,720 --> 01:10:20,280 He's actually being, we work in, I got projects in probably nine cities right now. 526 01:10:20,280 --> 01:10:26,340 And Scott McDonald is way more aggressive, and our utility department is way more 527 01:10:26,340 --> 01:10:30,720 aggressive on going, how do we get the right infrastructure in place for 528 01:10:30,720 --> 01:10:32,040 long term here? 529 01:10:32,040 --> 01:10:36,520 So there's some large, very large water line projects being worked on right now 530 01:10:36,520 --> 01:10:41,080 that are gonna be funded in different, maybe some creative funding ways between 531 01:10:41,080 --> 01:10:44,440 districts and city to be able to get that done. 532 01:10:44,440 --> 01:10:51,100 So for the first time in a long time, I would say we're actually got that vision. 533 01:10:51,100 --> 01:10:55,000 >> Well, I mean, I don't know the whole picture like you probably do, but 534 01:10:55,000 --> 01:10:58,240 I just know there's examples that we've had meetings on that are contrary to what 535 01:10:58,240 --> 01:10:59,200 you just said. 536 01:10:59,200 --> 01:11:02,000 >> No, I understand, it can only be done once, right? 537 01:11:02,000 --> 01:11:05,960 >> So that's a challenge and it has to do with stuff that's in the ETJ. 538 01:11:05,960 --> 01:11:10,560 It has to do with stuff where people can't tap in and there's a line there. 539 01:11:10,560 --> 01:11:14,600 Or the manual project you guys talked about before, so 540 01:11:14,600 --> 01:11:19,320 I think there's plenty of examples that contradict that too. 541 01:11:19,320 --> 01:11:22,480 >> But I'm telling you, there's things that are working awesome, right? 542 01:11:22,480 --> 01:11:27,160 You may have these specific projects that one project, okay, 543 01:11:27,160 --> 01:11:31,600 it's not viable for the city to bring a whole water line from one project, right? 544 01:11:31,600 --> 01:11:38,120 But if you have a whole regional area and making a large investment, I mean, 545 01:11:38,120 --> 01:11:42,160 I can tell you 50 of them that I've done that didn't work because utilities, right? 546 01:11:42,160 --> 01:11:46,360 But I think what the concept that we're looking at now 547 01:11:46,360 --> 01:11:49,120 is we're looking at mass areas, right? 548 01:11:49,120 --> 01:11:55,160 And as I'm on both sides of this fence, I think I would rather see the dollars 549 01:11:55,160 --> 01:12:00,960 spent to provide service for large areas and then get it close, right? 550 01:12:00,960 --> 01:12:03,520 And then we can come off to some of those things on 380. 551 01:12:03,520 --> 01:12:06,560 What I'm talking about is what you're talking about on 380. 552 01:12:06,560 --> 01:12:08,960 That's a problem going out 380. 553 01:12:08,960 --> 01:12:12,360 And so I think if you're looking at how Scott and 554 01:12:12,360 --> 01:12:18,460 some of the team are looking at the overall picture to get the main chunk lines in, 555 01:12:18,460 --> 01:12:22,200 then those subsidiary things will start happening because it's at least within two 556 01:12:22,200 --> 01:12:23,120 or three miles. 557 01:12:23,120 --> 01:12:26,360 >> And I think that's exactly what we asked for in the water, the overlay, 558 01:12:26,360 --> 01:12:29,520 where the demand is and then where the capacity is or excess capacity. 559 01:12:29,520 --> 01:12:34,440 Hopefully that's what the city is gonna bring to us next month is that what is our 560 01:12:34,440 --> 01:12:38,560 excess capacity so we can look and see, these are the developed areas we wanna 561 01:12:38,560 --> 01:12:40,640 develop, like mass areas, I agree with that. 562 01:12:40,640 --> 01:12:44,360 And then, what's our excess capacity for that area? 563 01:12:44,360 --> 01:12:46,720 The gaps don't, it doesn't match. 564 01:12:46,720 --> 01:12:49,640 >> 100%, I think we've gotta analyze that as a city, and 565 01:12:49,640 --> 01:12:51,640 I think hopefully they're doing that. 566 01:12:51,640 --> 01:12:55,040 And the master water plan that the city has already done, 567 01:12:55,040 --> 01:12:56,320 they already have that information. 568 01:12:56,320 --> 01:12:59,000 It's not like we're asking them to go do a whole new water study. 569 01:12:59,000 --> 01:13:01,560 They've done a master sewer and water study. 570 01:13:01,560 --> 01:13:06,160 Kimley Horn did it for the city out of Fort Worth, and so we have that. 571 01:13:06,160 --> 01:13:10,080 But putting those heat maps and things like that together to be able to make 572 01:13:10,080 --> 01:13:14,160 somebody that doesn't understand gallons per day or sewer flows. 573 01:13:14,160 --> 01:13:17,880 And it takes forever to get your mind around all that. 574 01:13:17,880 --> 01:13:21,680 But some of the things you're asking for so that a city council member or 575 01:13:21,680 --> 01:13:25,920 a planning and zoning member can see that easily, we do have, yes or no, 576 01:13:25,920 --> 01:13:30,520 we do have extra capacity, we have capacity for this many years in these areas. 577 01:13:30,520 --> 01:13:33,440 So let's focus where we need to spend our dollars. 578 01:13:33,440 --> 01:13:39,000 But to my original point is, it may not be in the exact locations that we site 579 01:13:39,000 --> 01:13:43,720 this 20 acre site or this 50 acre site, but 580 01:13:43,720 --> 01:13:48,120 some things that are going on right now are very positive. 581 01:13:48,120 --> 01:13:53,920 Especially on the west side of town, where is our most advantageous to develop. 582 01:13:53,920 --> 01:13:59,560 From Denton to the county line, you go east, you got the lake, you go north. 583 01:13:59,560 --> 01:14:01,560 There's some opportunity north. 584 01:14:01,560 --> 01:14:06,640 There's some headwinds on the neighborhoods out there that what they want to see for 585 01:14:06,640 --> 01:14:08,520 development, so there's some headwinds going north. 586 01:14:08,520 --> 01:14:12,160 South, I think we know we're full up, we're not going very far south. 587 01:14:12,160 --> 01:14:16,080 So if you look at what's the most advantageous for development for 588 01:14:16,080 --> 01:14:20,960 Denton other than infill, I'm a big infill guy too, infill. 589 01:14:20,960 --> 01:14:25,440 But if you're looking at where it's gonna expand, because as a developer, 590 01:14:25,440 --> 01:14:29,000 we look where it's most cost effective, right, infill's tough. 591 01:14:29,000 --> 01:14:32,400 I love it, we still do it, but it's gonna be west. 592 01:14:32,400 --> 01:14:36,960 And that's where Scott McDonald and the engineering team is spending a lot of time 593 01:14:36,960 --> 01:14:41,840 on getting major water lines and sewer line extensions in capacity. 594 01:14:41,840 --> 01:14:46,520 And the city's done some big projects actually from Western Boulevard, 595 01:14:46,520 --> 01:14:48,720 all the way back under 35W. 596 01:14:48,720 --> 01:14:53,440 They've been working very quickly, when I say very quickly on the city terms, 597 01:14:53,440 --> 01:14:58,920 not my terms, as quick as the city can move to get those lines upgraded. 598 01:14:58,920 --> 01:15:02,640 Down underneath by the airport, back down with Coal Ranch coming in. 599 01:15:02,640 --> 01:15:06,960 There's been a lot, so it pains me to say, but 600 01:15:06,960 --> 01:15:11,880 there is a lot of really good things happening in long term. 601 01:15:11,880 --> 01:15:13,920 >> Why does it pain you so much? 602 01:15:13,920 --> 01:15:19,240 >> Because it takes five years to get it done, we need to celebrate the wins, right? 603 01:15:19,240 --> 01:15:26,160 This is to celebrate the win, but so there's a lot of good things happening to your point. 604 01:15:26,160 --> 01:15:30,840 I think if we could demonstrate these things in a map, like you're saying, 605 01:15:30,840 --> 01:15:34,400 I think it would, if we talk about the work we're doing, 606 01:15:34,400 --> 01:15:37,800 I think it's gonna change some of that perception. 607 01:15:37,800 --> 01:15:43,840 I think we just need to show some of that work that's happening, and some of the wins. 608 01:15:43,840 --> 01:15:46,680 And I think it'll change some perspectives. 609 01:15:46,680 --> 01:15:48,320 >> Is it funded? 610 01:15:48,320 --> 01:15:50,720 >> It's gonna be coming to city council to get funded, that's what I was gonna say. 611 01:15:50,720 --> 01:15:54,080 >> To get it funded, I think we're gonna have to show why it should be funded. 612 01:15:54,080 --> 01:15:55,520 And you're gonna need all that information to do that. 613 01:15:55,520 --> 01:15:58,560 >> That's right, and I think they have it, I think cuz I know for 614 01:15:58,560 --> 01:16:03,320 the projects I'm working on, we've done studies for the whole drainage basin. 615 01:16:03,320 --> 01:16:08,500 To say, okay, do we need an 18 inch line, do we need a 21 inch line, 30 inch line? 616 01:16:08,500 --> 01:16:12,720 We've done the whole basin study, not just for our project. 617 01:16:12,720 --> 01:16:18,440 And so I think those are positive things, so we need to celebrate those. 618 01:16:18,440 --> 01:16:20,480 And I don't think we've talked about those things enough, 619 01:16:20,480 --> 01:16:22,400 the good things that are going on. 620 01:16:22,400 --> 01:16:25,800 >> I know Lee and Amy serve on the development, so there's a separate 621 01:16:25,800 --> 01:16:28,160 committee going on to talk about future developments. 622 01:16:28,160 --> 01:16:31,440 But I think for our board, I have no doubt that those discussions are going on. 623 01:16:31,440 --> 01:16:35,560 But I think for our board, maybe we start identifying parcels that we can actually 624 01:16:35,560 --> 01:16:40,120 start recruiting manufacturers in, and then we actively market those sites to come in. 625 01:16:40,120 --> 01:16:43,480 Because what happens is the landowner may wanna sell it pretty quickly, or 626 01:16:43,480 --> 01:16:45,160 the program may have other ideas. 627 01:16:45,160 --> 01:16:49,280 And so we can probably pitch a certified site program, 628 01:16:49,280 --> 01:16:54,680 which is a shuttle ready site that I've been using in Corpus Christi. 629 01:16:54,680 --> 01:16:56,880 Previously, I didn't think they were successful, but 630 01:16:56,880 --> 01:17:00,160 Corpus Christi is a great example of how those are potential where it can be 631 01:17:00,160 --> 01:17:02,560 beneficial in economic development. 632 01:17:02,560 --> 01:17:05,760 Because if you do have a green cell site, what's the highest and best use? 633 01:17:05,760 --> 01:17:08,560 Is it warehouse space, or is it a manufacturer where you're gonna get 634 01:17:08,560 --> 01:17:11,360 ad valorem, you'll get sales tax, and you'll get jobs? 635 01:17:11,360 --> 01:17:14,400 With warehouse space, sometimes you'll get the ad valorem, but 636 01:17:14,400 --> 01:17:17,880 then you may just get a service company that may not create as many jobs. 637 01:17:17,880 --> 01:17:21,560 And so from our perspective, we would love another Peterbilt here. 638 01:17:21,560 --> 01:17:26,480 But it's gonna take the work of all of us to get that done, so. 639 01:17:26,480 --> 01:17:30,200 All right, that's all I have, any other questions, sir? 640 01:17:30,200 --> 01:17:36,200 >> Yeah, just a comment, yeah, it makes all the sense in the world to 641 01:17:36,200 --> 01:17:42,560 invest proactively where our future land use map tells us we wanna go. 642 01:17:42,560 --> 01:17:47,520 Make those investments and then market in a coordinated way. 643 01:17:47,520 --> 01:17:52,920 My question is, also building on your point, if in fact the conversion is so 644 01:17:52,920 --> 01:17:57,540 much stronger, which I expect to be right, off of brokers versus, say, 645 01:17:57,540 --> 01:18:00,440 the general ones that have three income sources. 646 01:18:00,440 --> 01:18:05,200 Do we have a program where we are marketing and 647 01:18:05,200 --> 01:18:09,920 selling specifically to members of brokers? 648 01:18:09,920 --> 01:18:14,200 It must be a finite universe, I don't know, it might be zillions, I don't know. 649 01:18:14,200 --> 01:18:17,800 >> That's a great question, and that's why we try to attend as many local events as 650 01:18:17,800 --> 01:18:19,800 possible so that we're meeting with them. 651 01:18:19,800 --> 01:18:23,920 We do try, Christina has it really, she reaches out to them often to ensure that 652 01:18:23,920 --> 01:18:27,600 their sites are still available, and to kinda get a know of what's going on. 653 01:18:27,600 --> 01:18:32,320 But we could do a better job, especially networking with the site selectors. 654 01:18:32,320 --> 01:18:36,000 And so that part of my first year was mostly getting the administrative work 655 01:18:36,000 --> 01:18:39,560 together, getting operations together, and so, but that's the next phase of what my 656 01:18:39,560 --> 01:18:43,200 role will be, is reaching out to more of the regional partners, so 657 01:18:43,200 --> 01:18:44,960 we make sure that we're getting the leads. 658 01:18:44,960 --> 01:18:48,300 And that's why I'm going with the Dallas Reno Tamer, thank you. 659 01:18:48,300 --> 01:18:54,600 >> I mean, just a super thought, I can imagine a cycle where you just try to 660 01:18:54,600 --> 01:18:59,120 cover a particular universe of brokers, just taking leads to make them, 661 01:18:59,120 --> 01:19:03,520 just to heighten their awareness of what we have thought, two minutes. 662 01:19:03,520 --> 01:19:05,960 >> I think if we go back and do some forensics, though, right? 663 01:19:05,960 --> 01:19:09,240 You're gonna have all that added, you know the stories, right? 664 01:19:09,240 --> 01:19:12,280 Ones that have been successful, you know the stories of ones that have been unsuccessful, 665 01:19:12,280 --> 01:19:17,400 and you start mining those with those specific topics in mind, right? 666 01:19:17,400 --> 01:19:20,640 What things can Denton do? 667 01:19:20,640 --> 01:19:25,200 What is making Denton attractive when you exploit those things, right? 668 01:19:25,200 --> 01:19:29,200 Based on the successful companies or whoever you want here, 669 01:19:29,200 --> 01:19:33,280 you'll be able to tell that through your data, so just encourage, 670 01:19:33,280 --> 01:19:40,840 continue to look through the data and help us to inform our decisions with that history. 671 01:19:40,840 --> 01:19:45,280 >> To build on top of that, you can just use Western Boulevard as one example. 672 01:19:45,280 --> 01:19:51,120 Just look at, the city spent the money to put one road in, and a water line, 673 01:19:51,120 --> 01:19:56,240 and there's an existing sewer, and you just say what was the investment of that road, 674 01:19:56,240 --> 01:20:01,520 and that water line, and then look at then the amount of improvements that, 675 01:20:01,520 --> 01:20:05,800 if I was presenting to the city council asking for a sewer line extension, 676 01:20:05,800 --> 01:20:10,320 I would just say, okay, we spent this many dollars on a road, 677 01:20:10,320 --> 01:20:14,720 and half of a road, not even the old road, half of a road, and a water line, 678 01:20:14,720 --> 01:20:19,280 and look at how many thousands of square feet, maybe millions of square feet, 679 01:20:19,280 --> 01:20:23,960 I know it's millions of square feet that we got by making that investment. 680 01:20:23,960 --> 01:20:27,880 So that shows if we just get a little bit ahead of it and get enough, 681 01:20:27,880 --> 01:20:31,400 that it can have a large return on a number of jobs. 682 01:20:31,400 --> 01:20:34,000 That may be a good, what do you know? 683 01:20:34,000 --> 01:20:36,840 >> You can go spend a fair amount of money on that road as well. 684 01:20:36,840 --> 01:20:37,400 >> On the other half. 685 01:20:37,400 --> 01:20:42,440 >> Yes, we did. 686 01:20:42,440 --> 01:20:44,080 >> That's right. 687 01:20:44,080 --> 01:20:46,760 >> Well, thank you for all your wisdom and advice. 688 01:20:46,760 --> 01:20:49,760 This is helpful for us because we do need your help. 689 01:20:49,760 --> 01:20:51,480 We often want to call you. 690 01:20:51,480 --> 01:20:52,800 We call you a lot, actually. 691 01:20:52,800 --> 01:20:55,200 We call a lot of our board members, so thank you so much. 692 01:20:55,200 --> 01:20:59,840 I know we have our TURS 2 meeting at 1237 minutes, so I'll let you take a break. 693 01:20:59,840 --> 01:21:02,680 But, oh, how's everything going? 694 01:21:02,680 --> 01:21:06,600 >> Oh, I think our last item is just future agenda topics. 695 01:21:06,600 --> 01:21:10,040 This slide is a little different than what we're going to mention. 696 01:21:10,040 --> 01:21:11,240 There's a few things. 697 01:21:11,240 --> 01:21:15,680 So for the June item, we have the water infrastructure item coming back. 698 01:21:15,680 --> 01:21:20,320 A couple placeholders for additional incentives will be brought forward. 699 01:21:20,320 --> 01:21:24,160 If we can get them through the additional due diligence staff is doing. 700 01:21:24,160 --> 01:21:28,960 The update on the RFI or the RFQ that Brittany mentioned previously. 701 01:21:28,960 --> 01:21:33,400 And another item for June that's not listed that I wanted to call to your attention is 702 01:21:33,400 --> 01:21:38,920 that in a prior meeting, we had a work session on rolling over incentives, expiring incentives 703 01:21:38,920 --> 01:21:42,440 from the Catalyst Fund, from the general fund to the Catalyst Fund. 704 01:21:42,440 --> 01:21:47,880 We held the work session with city council last week, and they provided a recommendation 705 01:21:47,880 --> 01:21:48,880 to move forward with that. 706 01:21:48,880 --> 01:21:52,320 So we're working on drafting that ordinance, and at one of the upcoming meetings, we'll 707 01:21:52,320 --> 01:21:56,520 bring that forward for a vote of individual consideration and then council adoption. 708 01:21:56,520 --> 01:22:02,240 So where we landed from your feedback is to recommend that the incentives be evaluated 709 01:22:02,240 --> 01:22:06,800 annually through the budget process to roll the entire expiring incentive or a portion 710 01:22:06,800 --> 01:22:07,800 of it. 711 01:22:07,800 --> 01:22:13,520 So giving that conversation for council to have annually and elect to move those over. 712 01:22:13,520 --> 01:22:20,280 And the estimated growth for that fund is about $9 million over the next nine years. 713 01:22:20,280 --> 01:22:25,120 A date on the utility department for my chain room. 714 01:22:25,120 --> 01:22:29,600 Yes, I checked in with Tony Puente, the general manager, he's going to provide me a date of 715 01:22:29,600 --> 01:22:33,080 when they can follow back up on the commercial deposits for utility accounts. 716 01:22:33,080 --> 01:22:37,080 So yes, they have it in queue, they were doing their study and I believe he should be able 717 01:22:37,080 --> 01:22:40,080 to come in July or August. 718 01:22:40,080 --> 01:22:44,080 Is there any other concluding items for this meeting? 719 01:22:44,080 --> 01:22:49,080 I do not need a motion to adjourn the meeting, correct? 720 01:22:49,080 --> 01:22:50,080 I do not. 721 01:22:50,080 --> 01:22:51,080 We do not. 722 01:22:51,080 --> 01:22:52,080 All right. 723 01:22:52,080 --> 01:23:07,440 With that, we can close until our 1230, and I'll see you all back here at 1230. 724 01:23:07,440 --> 01:23:22,460 Thank you very much.