Aug 05, 2024 Tax Increment Finance Reinvestment Zone Board Meeting

[1. Call to Order: The Tax Increment Financing Reinvestment Zone #2 Board of the City of Sachse will hold a regular meeting on Monday, August 5, 2024, at 6 p.m. to consider the following items of business:]

[00:00:03]

WELL, WELCOME EVERYONE OUT TO THE TAX INCREMENT FINANCING REINVESTMENT ZONE NUMBER TWO, OTHERWISE KNOWN AS TIRZ NUMBER TWO BOARD MEETING.

TODAY IS MONDAY, AUGUST 5TH, 2024.

THE TIME MS. GRANGER.

6 P.M. TIME IS 6 P.M..

WE ARE CALLED TO ORDER.

NEXT ITEM ON THE AGENDA IS ITEM TWO.

INVOCATION AND PLEDGE OF ALLEGIANCE TO THE US AND TEXAS FLAGS.

I'VE ASKED MR. PRESTENBERG TO LEAD OUR INVOCATION AND MAYOR PRO TEM FRANKS TO LEAD OUR PLEDGES.

IF YOU'LL PLEASE RISE. ALL RIGHT.

LET US PRAY. I COME BEFORE YOU TODAY, UNITED IN PURPOSE FOR THE BETTERMENT OF OUR COMMUNITY.

GRANT US WISDOM AND DISCERNMENT AS WE DELIBERATE ON THE MATTERS BEFORE US.

MAY OUR DECISIONS BE GUIDED BY COMPASSION, FAIRNESS, AND THE COMMON GOOD.

THANK YOU, LORD. AMEN.

IT'S THE AMERICAN FLAG.

THANK YOU. YOU MAY BE SEATED. NEXT ITEM ON THE AGENDA IS ITEM NUMBER THREE.

THE PUBLIC IS INVITED TO ADDRESS THE BOARD REGARDING ANY TOPIC NOT ALREADY ON THE AGENDA.

THE TIME LIMIT IS THREE MINUTES PER SPEAKER.

A PUBLIC COMMENT CARD SHOULD BE PRESENTED TO THE ACTING.

EXCUSE ME, TO THE CITY SECRETARY PRIOR TO THE MEETING.

ACCORDING TO THE TEXAS OPEN MEETINGS ACT, THE BOARD IS PROHIBITED FROM DISCUSSING ANY ITEM NOT POSTED ON THE AGENDA BUT WILL TAKE COMMENTS UNDER ADVISEMENT.

DIDN'T MEAN TO DEMOTE YOU, MISS GRANGER THERE.

SO, ANYONE LIKE TO ADDRESS THE BOARD AT THIS TIME? COME ON DOWN.

MATTHEW HOLBOKE, 5511 OAK RIDGE CIRCLE, TOP OF THE HILL.

I STUMBLED INTO A MEETING.

SO, WHEN YOU BANG THE GAVEL, YOU SCARED ME MORE THAN ANYTHING.

SORRY ABOUT THAT. BUT I DID HAVE A QUESTION.

BECAUSE IT IS ON THE REGULAR AGENDA.

THE PARKING LOT ON HUDSON DRIVE IS IT TIRZ TWO OR IS IT TIRZ THREE, AND IF IT'S ON THE AGENDA LATER, I APOLOGIZE BECAUSE I DON'T HAVE THAT. AND IT WAS JUST A BIT OF INFORMATION I WAS LOOKING FOR.

THANK YOU. THANK YOU, MR. HOLBOKE. ANYONE ELSE LIKE TO ADDRESS THE BOARD AT THIS TIME? SEEING NONE, WE'LL MOVE ON.

NEXT ITEM ON THE AGENDA IS ITEM FOUR.

[4. Consider approving the October 26, 2020, meeting minutes.]

THE MEETING MINUTES ARE IN YOUR PACKET AND QUESTIONS, COMMENTS OR MOTIONS.

MR. MILLSAP.

I JUST HAVE A QUESTION OF CLARIFICATION, I THINK ON PAGE 48 OR 52.

ABOUT FOUR LINES UP FROM THE BOTTOM.

MR. MILLSAP. COULD YOU SCOOT YOUR MIC UP? SURE. OKAY. THANK YOU.

BE GLAD TO.

I CAN HEAR ME.

OKAY. WELL, ANYWAY.

ANYWAY, FOUR LINES UP.

I JUST SAID IT SAYS COMPANY MAY SUBMIT THE PAYMENT REQUEST FOR THE ECONOMIC DEVELOPMENT GRANTS NO EARLIER THAN APRIL 15TH, FOLLOWING THE DAY THE CALENDAR YEAR.

MR. MILLSAP I.

CORRECT ME, I THINK YOU'RE READING FROM THE AGREEMENT, NOT THE MINUTES.

OKAY, SO WE'LL COVER THAT ONE.

OKAY, OKAY. ALL RIGHT.

YOU'RE RIGHT. OKAY.

NO PROBLEM. ANYONE ELSE HAVE A QUESTION? COMMENT? MOTION FOR THE MINUTES.

MR. PRESTENBERG, I'D JUST LIKE TO MAKE A MOTION.

IF THERE ARE NO IS THERE IS NO FURTHER COMMENT TO APPROVE ITEM A3 AS PRESENTED.

A 4 OR 5 AND SIX. EXCUSE ME.

OKAY, WELL, WE WON'T DO ONE AT A TIME.

OH, WELL, YOU SAID MINUTES.

YOU DIDN'T SAY OCTOBER MINUTES, I APOLOGIZE.

OH. OCTOBER 26TH, 2020.

THERE YOU GO. ALL RIGHT. GOT A MOTION TO APPROVE ITEM FOUR AS PRESENTED.

I HAVE A SECOND, MISS BUHLER.

SECOND. SECOND BY MISS BUHLER.

ANY FURTHER DISCUSSION? HEARING NONE. PLEASE CAST YOUR BALLOT.

MOTION CARRIES UNANIMOUSLY.

NEXT ITEM ON THE AGENDA IS ITEM FIVE.

[5. Consider approving the November 14, 2022, regular meeting minutes.]

AGAIN, TAKE QUESTIONS.

COMMENTS. MOTIONS.

DON'T EVERYBODY FIGHT FOR AT ONCE.

MR. LINDSEY.

MR. MAYOR MAKE A MOTION TO APPROVE.

ITEM A5 IS PRESENTED A MOTION BY MR. LINDSEY TO APPROVE ITEM A5 AS PRESENTED TO HAVE A SECOND.

MR. PRESTENBERG SECOND.

HAVE A SECOND BY MR. PRESTENBERG.

ANY FURTHER DISCUSSION? HEARING NONE. PLEASE CAST YOUR BALLOT.

[00:05:05]

NEXT ITEM ON THE AGENDA IS ITEM SIX.

[6. Consider approving the December 4, 2023, regular meeting minutes.]

STOP ME IF YOU HEARD THIS.

QUESTIONS? COMMENTS. MOTIONS.

MR. LINDSEY.

MR. MAYOR, MAKE A MOTION TO APPROVE A6 AS PRESENTED.

I HAVE A MOTION BY MR. LINDSEY TO APPROVE ITEM A6 AS PRESENTED.

DO I HAVE A SECOND? SECOND.

I HAVE A SECOND BY MR. MILLSAP. ANY FURTHER DISCUSSION? HEARING NONE. PLEASE CAST YOUR VOTE.

WE'LL SEE HOW QUICK MR. GRANGER IS TONIGHT.

MOTION CARRIES UNANIMOUSLY.

NEXT ITEM ON THE AGENDA IS ITEM SEVEN.

[7. Consider accepting the City of Sachse Investment Policy for FY 2023-2024, as adopted by the City Council on December 4, 2023.]

DID WE NEED AN INTRODUCTION FROM STAFF ON THIS? NO, I MEAN I CAN OKAY.

YEAH, JUST MAYBE JUST A BRIEF.

SO YEAH. MAYOR AND COUNCIL, AS YOU KNOW, ON ANY OF OUR BOARDS THAT HAVE ANY FIDUCIARY RESPONSIBILITY, SUCH AS THE MDD BOARD, THE EDC BOARD, AND THIS PARTICULAR BOARD, YOU DO HAVE TO THE BOARD SPECIFICALLY HAS TO ACCEPT THE INVESTMENT POLICY THAT'S APPROVED BY THE CITY COUNCIL ON THE BOARD LEVEL. AND SO THAT'S THE REQUEST THAT WE'RE MAKING OF THE BOARD TONIGHT.

THANK YOU, MISS NASH. QUESTIONS OR COMMENTS FROM COUNCIL? YES. WE CAN ASK THEM A QUESTION.

YOURS, I THINK, IS RELATED TO NUMBER NINE.

YOU WERE NINE. YEAH. OKAY, SO WE'RE ALMOST THERE.

ANY FURTHER DISCUSSION? HEARING NONE. EXCUSE ME, I NEED A MOTION FIRST.

MISS BUHLER, I'D LIKE TO MAKE A MOTION TO APPROVE ITEM SEVEN AS PRESENTED.

I HAVE MOTION BY MISS BUHLER TO APPROVE ITEM SEVEN AS PRESENTED.

DO I HAVE A SECOND MR. LINDSEY SECOND.

HAVE A SECOND BY MR. LINDSEY.

ANY FURTHER DISCUSSION? HEARING NONE, PLEASE CAST YOUR BALLOT.

MOTION CARRIES UNANIMOUSLY.

NEXT ITEM ON THE AGENDA IS ITEM EIGHT.

[8. Consider accepting the Quarterly Investment Reports for the quarters ending December 31, 2023, and March 31, 2024.]

MUCH LIKE THE PREVIOUS ONE, ALTHOUGH SLIGHTLY DIFFERENT.

ANY SAME IDEA FOR MRS. NASH OKAY. DISCUSSIONS.

COMMENTS. MOTIONS. MR. LINDSEY. HI MR. MAYOR. MOTION TO APPROVE ITEM A EIGHT AS PRESENTED.

I HAVE A MOTION BY MR. LINDSEY TO APPROVE ITEM A8.

GOSH, A8 TO HAVE A SECOND MR. PRESTENBERG SECOND, HAVE A SECOND BY MR. PRESTENBERG. ANY FURTHER DISCUSSION? HEARING NONE, PLEASE CAST YOUR BALLOT.

MOTION CARRIES UNANIMOUSLY.

ALL RIGHT. I FEEL LIKE WE GOT THE LAUNDRY LIST DONE.

SO NOW WE CAN GET TO THE MEAT OF THE AGENDA, IF YOU WILL.

NEXT ITEM ON THE AGENDA IS ITEM NINE.

[9. Consider authorizing an amendment to the existing Tax Increment Reinvestment Zone (TIRZ) Reimbursement Agreement with the City of Sachse, the TIRZ #2 Board, and the PMB Station Developer, LLC.; and any amendments or instruments related thereto.]

THE TIRZ NUMBER TWO BOARD AND THE PNB STATION DEVELOPER, LLC, AND ANY AMENDMENTS OR INSTRUMENTS RELATED THERETO.

AND BEFORE YOU GET TO YOU, MR. MILLSAP, WE ARE GOING TO HAVE A PRESENTATION FROM STAFF.

SO OKAY WITH THAT, MISS ROSE.

GOOD EVENING, MAYOR AND COUNCIL.

YOU GUYS HEAR ME? OKAY.

YEAH, YEAH.

OKAY, THERE WE GO.

TONIGHT, WE'RE HERE TO TALK IN YOUR CAPACITY AS A TIRZ BOARD ABOUT MAKING AN AMENDMENT TO THE TIRZ REIMBURSEMENT AGREEMENT THAT YOU ALL APPROVED LAST DECEMBER.

WHAT THIS AGREEMENT WAS A NEGOTIATED BETWEEN THE CITY, THE DEVELOPER, WITH THE ASSISTANCE OF OUR ATTORNEYS.

THAT WE'VE IDENTIFIED IN THE EXHIBIT TO THE AGREEMENT SOME SPECIFIC IMPROVEMENTS ON BOTH THE PRIVATE AND PUBLIC SIDE FOR WHICH REIMBURSEMENT GRANTS FROM THE TIRZ FUNDS WOULD BE PAID.

THIS WAS A PART OF YOUR ORIGINAL DEVELOPMENT AGREEMENT BACK WITH THE STATION, WHICH WAS NEGOTIATED ALL THE WAY BACK IN 2018.

SO THIS IS JUST A FINAL COMPONENT OF THAT.

WHAT THIS AGREEMENT DOES, IS IT FURTHER CAPS REIMBURSEMENT GRANTS TO THE ESTIMATED COST FOR DESIGN AND CONSTRUCTION OF EACH COMPONENT OF THE IMPROVEMENTS ON A PER COMPONENT BASIS. AND THOSE CAPS WERE SET FORTH IN THE AGREEMENT TO THE EXHIBITS.

AND THE ORIGINAL ITERATION, AS I MENTIONED, WAS APPROVED BY YOU ALL AS THE TIRZ BOARD AND BY YOU ALL AS THE CITY COUNCIL BACK IN DECEMBER OF 2023.

SO WHAT WE FOUND SINCE THAT TIME IS WE WERE A REALLY RESTRICTIVE AGREEMENT.

THAT WAS A BIT TOO RESTRICTIVE, IN FACT.

IT WAS PRETTY LIMITING IN WHAT THE DEVELOPER COULD GET REIMBURSED FOR AND WAS A BIT TOO LIMITING.

SO WE IT DOESN'T ALLOW THE DEVELOPER TO BE REIMBURSED FOR AMOUNTS EXCEEDING EACH INDIVIDUAL LINE ITEM.

[00:10:05]

IT WAS TO SET ASIDE CLEAR GUIDELINES FOR WHAT THE ITEMS WOULD BE, BUT NOT TO LIMIT THE AMOUNT OF THE OVERALL GRANT.

AND BECAUSE WE HAVE REALLY STRICT INTERPRETATIONS OF OUR AGREEMENTS, OUR CITY ATTORNEYS AND CONSULTATION WITH OUR ADMINISTRATOR AND OUR CHURCH ADMINISTRATOR P3 WORKS ADVISED THAT WE MAKE AN AMENDMENT TO FIX THE RESTRICTIVE NATURE OF THIS AND MAKE IT A LITTLE BIT EASIER FOR THE DEVELOPER TO ACHIEVE COST OVERRUNS AND SOME MOVEMENT WITHIN THOSE INDIVIDUAL LINE ITEMS. IT'S IMPORTANT TO NOTE THAT THIS LANGUAGE REFLECTS WHAT'S ACTUALLY IN THE ORIGINAL DEVELOPMENT AGREEMENT, AND WHAT LANGUAGE IS IN PLACE FOR THE PID, SO IT ACTUALLY MATCHES THAT LANGUAGE AND MAKES IT CONSISTENT ACROSS THE BOARD.

SO OUR TEAM HAS NEGOTIATED THIS PROPOSED AMENDMENT TO MAKE THIS CORRECTION, AND IT'S IMPORTANT TO REMIND EVERYBODY THAT THIS DOES NOT CHANGE THE TOTAL AMOUNT OF THE GRANTS TO BE RECEIVED BY PMB.

IT JUST ALLOWS THEM A LITTLE BIT MORE FLEXIBILITY TO BE REIMBURSED FOR INDIVIDUAL ITEMS. SO THE NEXT STEPS HERE WOULD BE TO CONSIDER A RECOMMENDATION FROM YOU ALL AS A TOURIST BOARD, AND THEN TO CONSIDER APPROVAL OF THAT FOR THE CITY COUNCIL.

AND WITH THAT, I'D BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE.

I DON'T KNOW, MISS ROSE.

WHEN'S THE COUNCIL MEET AGAIN? OH, THAT'S RIGHT. WE'RE MEETING RIGHT AFTER THIS.

THANK YOU, MISS ROSE.

MR. MILLSAP, DID YOU WANT TO ADDRESS YOUR QUESTION? OKAY, NOW THAT YOU MADE YOUR STATEMENT MAYBE I HAVE TWO QUESTIONS.

OKAY. YOU ALLUDED TO THE FACT THAT THE COST OF IT CAN BE A COST OVERRUN.

ACCEPTABLE. NOW. DO WE HAVE ANY LIMITS ON THIS GRANT? COST OVERRUN? SO IT DON'T CONTINUALLY HABITUATE? WELL, WE HAD TO RAISE THIS, AND SOMETHING ELSE HAPPENED.

I WOULD LIKE TO SEE MAYBE A LIMIT ON COST OVERRUN.

MAYBE, SAY, A 10% ABOVE THE NO GREATER THAN 10% ABOVE THE ORIGINAL GRANT? WELL, ACTUALLY, IT'S EVEN MORE RESTRICTIVE THAN THAT.

THERE'S A SECTION 4.4 MAXIMUM GRANT PAYMENTS THAT CAPS THE TOTAL AMOUNTS FOR EACH GRANT, AND THERE ARE TWO THAT THEY'RE ELIGIBLE TO RECEIVE UNDER THIS AGREEMENT.

SO THOSE ARE SPECIFICALLY CAPPED AS THE TOTAL.

THE ISSUE WAS JUST THEY WERE BEING CAPPED WITH AN INDIVIDUAL LINE ITEMS, AND THEY COULD NEVER GET TO THE TOTAL.

DOES THAT MAKE SENSE? OKAY, SO THE NEW CAP LISTED IS THE GRANT PLUS ANY COST OR ANTICIPATED COST OVERRUN? THERE'S NO NEW CAP.

IT'S THE ORIGINAL CAP THAT YOU ALL AGREED UPON.

IT JUST ALLOWS THEM MORE FLEXIBILITY WITHIN THAT CAP.

OKAY, OKAY.

THAT ANSWERS THAT QUESTION.

NOW THEN WHEN I HAD ON PAGE 48, I THINK IT'S JUST INTERPRETATION OF THE WORDING TO MEAN YES, IT WAS A VERY RESTRICTIVE AGREEMENT.

SO, WELL, IT SAYS THE COMPANY MAY SUBMIT THE PAYMENT REQUEST FOR THE ECONOMIC DEVELOPMENT GRANTS NO EARLIER THAN APRIL 1ST, FOLLOWING THE CALENDAR YEAR FOR WHICH THE REQUEST IS MADE, BUT NOT LATER THAN JULY 1ST.

FAILURE OF THE COMPANY TO TIMELY SUBMIT A PAYMENT REQUEST FOR AN ANNUAL ECONOMIC DEVELOPMENT GRANT SHALL RESULT.

IN FORFEITURE OF THE PAYMENT OF SUCH ANNUAL ECONOMIC DEVELOPMENT GRANTS.

SUBJECT TO NOTES TO SECTION NUMBER FOUR.

DOES THAT MEAN THAT IF THEY IF THEY DON'T SUBMIT IT BY THIS DATE, THEY DON'T GET ANY MONEY? IT MEANS THAT EACH YEAR THEY HAVE AN OPPORTUNITY IN A WINDOW OF TIME TO SUBMIT FOR THEIR REIMBURSEMENTS, AND IF THEY DON'T FALL WITHIN THAT TIME FRAME, THEN THEY ARE SUBJECT TO LOSING OUT ON THAT PAYMENT EACH YEAR.

THEY'RE RESTRICTED TO THAT TIME FRAME BECAUSE IT HAS TO DO WITH WHEN THE THE TIRZ FUNDS ARE AVAILABLE WITHIN THE ACCOUNT.

AND THAT, OF COURSE, ISN'T AVAILABLE UNTIL AFTER THE START OF THE YEAR ONCE REVENUES COME IN.

OKAY. BECAUSE I, I DON'T SEE WHERE IT SAYS THEY'RE SUBJECT TO LOSING AND IT SAYS THEY CAN'T GET IT.

THAT'S THE REASON I THAT'S THE REASON I WANTED TO CLARIFY THAT STATEMENT I SHALL.

YEAH. SHALL RESULT IN A FORFEITURE OF THE PAYMENT OF SUCH ANNUAL INFRASTRUCTURE GRANT.

YEAH. SHE'S FOR FORFEITURE.

MEANS YOU DON'T GET IT.

INSTEAD OF A SUBJECT TO LOSING IT, I THINK WE PROBABLY NEED TO THINK ABOUT REWORDING THAT STATEMENT A LITTLE BIT.

THEY'RE VERY DILIGENT ABOUT SUBMITTING THEIR REQUESTS FOR REIMBURSEMENT.

YEAH. IF I WASN'T GOING TO GET ANY MONEY, I WOULD.

THEY'RE NOT GOING TO MISS AN OPPORTUNITY.

BUT IF A MAIL TRUCK HAS A FLAT AND IT DOESN'T GET HERE ON TIME, YOU MAY BE IN TROUBLE.

YES. YEAH, I THINK THIS IS A PROTECTION FOR THE CITY, IN CASE THERE WAS ANY TURNOVER AT THE DEVELOPER LEVEL TO MAKE SURE THAT THEY'RE SUBMITTING THEIR PAYMENTS ON TIME AND THEY CAN'T COME ASK FOR IT AFTER THE FACT.

OKAY. OTHER QUESTIONS FROM COUNCIL.

THANK YOU, MISS ROSE.

QUESTIONS FROM THE AUDIENCE.

OH, I'M SORRY, MR. PRESTENBERG.

YEAH. HEY, LAUREN.

REAL QUICK. SO MAYBE I'M THINKING ABOUT THIS ALL WRONG.

WHEN THE LIMITS WERE PUT IN INITIALLY, WAS IT TO PROTECT THE CITY, TO REIMBURSE FOR THINGS THAT WE WANTED, OR THAT WE DIDN'T WANT THEM TO SPEND MONEY

[00:15:10]

SO THESE WERE ITEMS, IF YOU'LL CAST YOUR MEMORY BACK TO THE ORIGINAL DEVELOPMENT AGREEMENT, WHICH I KNOW NOT EVERYBODY ON THIS COUNCIL WAS PRESENT AT THAT TIME, BUT THERE WERE THINGS THAT WE AGREED UPON BEING PRESENT AT THE STATION, AND WE DID NOT HAVE OUR PID ADMINISTRATOR IN PLACE AT THE TIME.

SO, THERE WAS A VISION THAT THEY WOULD GET REIMBURSED FOR CERTAIN ITEMS AND CERTAIN AMENITIES THAT ARE NOT PIT ELIGIBLE EXPENSES.

SO OUR PIT ADMINISTRATOR SAID, ABSOLUTELY NOT.

YOU CANNOT PAY THEM FOR THESE ITEMS BECAUSE THEY'RE NOT ELIGIBLE UNDER THE PIT ACT, BUT THEY ARE ELIGIBLE UNDER THE TIRZ ACT.

AND BECAUSE THERE IS A PID TIRZ OVERLAY, THEY ARE ELIGIBLE FOR REIMBURSEMENT OUT OF THE TIRZ.

THE ORIGINAL TIRZ REIMBURSEMENT AGREEMENT ALLOWS THEM TO BE REIMBURSED FOR THOSE ITEMS THAT THEY CAN'T GET PAID FOR OUT OF THE PID.

OKAY. SO, IT IS A LITTLE BIT OF THESE ARE THINGS THAT THE CITY WANTED AND ASKED FOR.

LIKE A LOT OF THE LIGHT FIXTURES DOWN THERE, SOME OF THE NICER AMENITIES THAT YOU SEE THAT JUST COULDN'T BE REIMBURSED FOR OUT OF THE PID.

OKAY. ALL RIGHT.

THAT MAKES SENSE. THANK YOU.

YOU'RE WELCOME. OTHER QUESTIONS FROM COUNCIL.

ALL RIGHT. HEARING NONE. THE MORE DISCUSSION MOTIONS.

DON'T BE SHY.

MR. LINDSEY.

MR. MAYOR, I'D LIKE TO MAKE A MOTION AGAIN.

FOR ITEM A9.

AS PRESENTED, THAT MOTION BY MR. LINDSEY TO APPROVE ITEM A9 AS PRESENTED.

DO I HAVE A SECOND, MISS BUHLER? OH, THERE YOU GO.

SECOND. SECOND BY MISS BUHLER.

ANY FURTHER DISCUSSION? HEARING NONE. PLEASE CAST YOUR BALLOT.

MOTION CARRIES UNANIMOUSLY.

WE WILL SEE THIS ITEM SHORTLY AT OUR WHEN WE PUT OUR OTHER HATS ON.

SO, WITH THAT NEXT ITEM IS ITEM TEN.

ADJOURNMENT. THE TIME IS GRANGER 6:17 P.M..

WE ARE ADJOURNED AT 6:17 P.M..

SEE YOU IN 13 MINUTES.

* This transcript was compiled from uncorrected Closed Captioning.