Jan 13, 2025 Economic Development

[A. REGULAR SESSION]

[00:00:05]

SIR. OKAY, GREAT. HI, EVERYONE. COLBY. PRESIDENT, BOARD OF DIRECTORS. DEVELOPMENT CORPORATION IS HEREBY CALLED TO ORDER. ON THIS MONDAY, JANUARY THE 13TH. MY BIRTHDAY AT 616.

PUT A DOLLAR ON HIM. PUT A DOLL ON HIM. A DOLL ON HIM. I SAID 6:08 P.M. WHAT A GREAT DAY TO BE BORN. YES IT IS. SO WELCOME TO. I'M GLAD FOR WHAT IS HERE AND HOPEFULLY EVERYONE HAD A WONDERFUL, WONDERFUL HOLIDAY SEASON AND LOOKING FORWARD TO A RICHLY BLESSED NEW YEAR 2025.

THANK YOU. AND ON THAT NOTE, IF I MAY ASK FOR INVOCATION FROM. REVEREND DOCTOR BREW. YES, SIR.

TELL ME ABOUT GOD, OUR FATHER. WE ARE GRATEFUL, GOD, FOR THIS NEW OPPORTUNITY, THIS NEW YEAR AND THIS A NEW SEASON. AND OUR LIVES INDIVIDUALLY. WE'RE THANKFUL, GOD, FOR THESE DIRECTORS THAT YOU'VE ASSEMBLED HERE TO LOOK AT THE ECONOMIC DEVELOPMENT PROGRESS OF OUR CITY. WE ASK NOW AND PRAY FOR CLARITY OF THOUGHT AND OF MIND. ONE IS THE SPIRIT AND ONE IS A VISION. WE PRAY FOR OUR PRESIDENT, GOD AND EVERY DIRECTOR THAT'S ASSEMBLED HERE.

BLESS OUR EFFORTS AND BLESS OUR TIME. IN JESUS CHRIST NAME WE PRAY. AMEN. AMEN. AMEN. THANK YOU VERY MUCH FOR THAT, COUNCILMAN BYRD. PASTOR BYRD. AGAIN, JUST WELCOME EVERYONE.

IT'S JUST I'M JUST REALLY EXCITED BECAUSE OF THE FACT THIS IS A NEW TIME FOR US. IF I MAY SAY, WE NORMALLY WOULD. MEETING ON THURSDAYS. THIS IS OUR FIRST MEETING OF THE YEAR, AND WE'RE MOVING, MOVING TO THIS NEW SECOND MONDAY OF EVERY MONTH. SO I THINK THAT HOPEFULLY THIS WORKS A LOT BETTER FOR EVERYBODY. AND OUR CONTINUITY PROCESS, IF YOU WILL. SO BASED

[B.1. City Council Liaison update regarding City events and meetings Councilmember Andre' Byrd]

HOPEFULLY YOU'VE ALREADY NOTICED IT, BUT BY CHANCE YOU DID NOT. YOU GO DOWN MAJOR CORRIDORS. YOU WILL SEE NEW LIGHTING ON THE STREETS. COMING DOWN HAMPTON ROAD. SO THERE HAS BEEN A CONCERTED EFFORT TO UPGRADE ALL OF THE OLD LIGHTING FIXTURES TO LEDS. AND SO SOME OF THE MAJOR CORRIDORS HAVE ALREADY BEEN BEEN ENGAGED. AND WE JUST WE JUST AGREED TO A $92,000 TO CONVERT 340 STREET LIGHTS ALONG COCKRELL HILL ROAD WEST OF PARKVILLE NORTH. OH, SORRY. WEST OF PARKVILLE. NORTH TO WINTERGREEN ROAD. SOUTH HAMPTON ROAD FROM PARKVILLE ROAD NORTH TO BELTLINE ROAD. AND SO $92,000 HAVE BEEN SPENT OR WAS ALLOCATED. WAS GIVEN TO THE CITY MANAGER TO NEGOTIATE AND TO EXECUTE A SUPPLEMENT TO THE AGREEMENT FOR THE STREET LIGHTS. SO THAT'S GOOD. IT GIVES IF YOU'VE NOT NOTICED TONIGHT, MAYBE WHEN YOU LEAVE YOU CAN SEE YOU'LL SEE AREAS WHERE THE OLD STREET LIGHTS VERSUS THE NEW ONE. IT JUST MAKES THE CITY LOOK BRIGHTER, CLEANER. IT GIVES A PERCEPTION OF WHERE WE ARE HOPEFULLY GOING THIS YEAR, A MORE PRESTIGIOUS LOOK FOR OUR CITY AND A UPGRADED LOOK. A MORE MODERN LOOK. SO THOSE ARE THE TWO THINGS THAT I HAVE. RIGHT NOW I WENT TO RETREAT IS THE BIG DEAL THAT'S HAPPENING. AND JANUARY. OH ALSO THERE ARE TWO ELECTIONS. THERE'S ONE ELECTION, BUT THERE ARE SEVERAL SPOTS THAT'S UP. AND YOU PROBABLY ARE ALREADY AWARE. TWO COUNCIL MEMBERS, ONE OF WHICH IS HERE.

[00:05:05]

ALSO, DOCTOR DIANA MARKS IN PLACE FIVE. SHE IS TERMED OUT AND WE'LL GET SOMEONE THERE. AND ALSO THE MAYOR'S POSITION IS UP FOR REELECTION. AND SO THOSE THAT'S THE CYCLE THAT ALWAYS HAVE THREE NORMAL CYCLES WILL HAVE TWO COUNCIL PEOPLE RUNNING. BUT THE ONE WHERE WE HAVE THE MAYOR TYPICALLY IS THREE POSITIONS INSTEAD OF JUST TWO. THOSE ARE THAT'S MY REPORT. I'M OPEN FOR ANY QUESTIONS IF THERE BE ANY. ANY QUESTIONS FROM THE COUNCIL? YEAH. I'M CURIOUS TO KNOW ABOUT THE LED LIGHTS. WILL THERE BE ANY SAVINGS INVOLVED IN TERMS OF GOING LED IN TERMS OF THE LIGHT BILL? I DON'T KNOW THE ANSWER TO THAT. WE CAN WE CAN ASK THE CITY MANAGER, I'M SURE I THINK THAT IT WAS PRIMARILY DONE FOR ESTHETICS, FOR ESTHETICS. AND BUT, YOU KNOW, LED IS A LOT BETTER THAN THE OTHER ONE. I DON'T I CAN'T SPEAK TO THE COST SAVINGS EXACTLY BUT I CAN GET THAT INFORMATION. THAT'S A WONDERFUL QUESTION. AND I DON'T UNFORTUNATELY I DON'T KNOW THE ANSWER TO THAT. SO WE WILL GET YOU AN ANSWER. THANK YOU. YES, SIR. IN MOST CASES WHEN YOU CONVERT TO LED, THERE ARE SAVINGS TO SURVIVE. SO YEAH, IN MOST CASES, YES. OKAY. ANY ADDITIONAL QUESTIONS FOR COUNCILMAN? THANK YOU VERY MUCH SIR. THANK YOU SIR. THANK YOU.

[B.2. Review of October 2024, FY23/24 Year End, & November 2024 Finance Status Reports. Tracy Cormier, Director Financial Services.]

IT WAS AT 2.781 MILLION OF THE 113,406 GAINS FROM THE PREVIOUS FISCAL YEAR. INTEREST, OF COURSE, WITH THE GREAT RATES WE HAD LAST YEAR, WE CAME IN AT 470,809. THAT IS A 144,000 DIFFERENCE IN THE PREVIOUS YEAR. OVERALL REVENUE FOR THE FISCAL YEAR WAS 753,000 OVER WHAT WAS.

AS FAR AS EXPENDITURES. OVERALL, THE EXPENDITURES CAME IN TREMENDOUSLY UNDER BUDGET, AT 64%. YOUR BUDGET WAS AT 3.3%. YOUR OVERALL IS AT 2.1 FOR THE YEAR. AND ONCE AGAIN, THESE ARE UNAUDITED FIGURES, BUT I DON'T SEE THEM CHANGING MUCH. ONCE THE AUDIT IS COMPLETE. SO THE SALES TAX I MEAN WE'RE UP. DO YOU KNOW WHY? I MEAN, I KNOW IT'S SALES TAX, BUT YEAH. NOT IN PARTICULAR. I MEAN, IT FLUCTUATES FROM MONTH TO MONTH THROUGHOUT THE FISCAL YEAR. I MEAN, IT IS UP SOME MONTHS FROM THE PREVIOUS YEAR. IT WAS DOWN OTHER MONTHS. SO, I MEAN, WE HAVE A PRESENTATION COMING THAT MIGHT GIVE THEM. A LITTLE MORE CLEARER ASPECT OF US MOVING. MR. CHAIRMAN. SO I WOULD LIKE WHEN WE TALK ABOUT SINCE NOW THAT WE HAVE THE SUPPORTING INFORMATION.

I MEAN, PART OF THE SALES TAX COULD BE SEASONALITY. IT COULD BE. AND SO I'D LIKE TO HAVE A LITTLE COLOR IN TERMS OF WHAT'S HAPPENING WITH THE REVENUES THROUGHOUT THE YEAR OTHER THAN THE SALES TAX WENT UP. WE WENT DOWN. BUT WHY? WELL I KNOW I DON'T KNOW, MATT. IS HE GOING TO TALK ABOUT IT IN THE FUTURE. BUT WE'RE GOING TO GET A SOFTWARE THAT WE'RE ABLE TO GIVE YOU THAT INFORMATION ON A I'M NOT SURE IF IT'S GOING TO BE A MONTHLY, BUT A QUARTERLY BASIS. I THINK THAT'S A GOOD POINT. I'LL TAKE QUARTERLY, BUT WE DIDN'T BEFORE. WE NEVER HAD THE SOFTWARE TO GIVE YOU THAT INFORMATION. WELL, WE HAVE NEW STREET LIGHTS. WE NEED TO WE NEED TO WE NEED TO BE ABLE TO ANALYZE THE DATA THAT'S ON OUR SIDE, THOUGH. THE STREET LIGHTS ON OUR SIDE. WE NEED LIGHT ON THE INSIDE. SO WE ACTUALLY HAVE A PRESENTATION TONIGHT THAT DOES THAT REVIEW SOME OF THOSE TRENDS SO THAT WE CAN START TO START TO LOOK AT THAT. I WISH I COULD TELL YOU THAT THERE'S A WHOLE LOT. AND NOT TO STEAL STEAL YOUR THUNDER SOLELY. BUT THERE'S NOT NOT A WHOLE LOT THAT JUST JUMPS OFF THE PAGE AT YOU AND THINK, OH MY GOSH. WE'LL I'LL SAVE THAT FOR WHEN WE GO AHEAD AND REVIEW IT. BUT, BUT THE IDEA IS FOR AT LEAST FOR US TO HAVE SOME IDEA OF SOME OF THE PIECES AND PARTS THAT ARE CHANGING. BUT BUT TO YOUR POINT, MADAM SECRETARY,

[00:10:05]

RIGHT, RIGHT, RIGHT. SO. ALSO ON PAGE 14, I WANTED TO SAY WHAT I DID AT THE END OF THE YEAR, I SEPARATED DCVC AND MATT AND I HAD A DISCUSSION ON IT IS PROBABLY IN THE BEST INTEREST TO DO IT THIS WAY BECAUSE DEPDC HAS A DEBT OBLIGATION OVER THE NEXT 20 YEARS RELATED TO THE AQUATICS CENTER. SO WHAT WE WANT TO DO IS MAKE SURE THAT MONEY SEPARATED FROM THE EDC IS GOING TO BE IN A SEPARATE BANK ACCOUNT, AND IT'S GOING TO BE REPORTED SEPARATELY ON A MONTHLY BASIS. SO LET ME JUST REMIND THE BOARD THAT WE'RE SEPARATING THAT THE CHARTER OR THE BYLAWS DON'T CHANGE THE STRUCTURE. THAT'S THAT REMAINS THE SAME. SO THE PARKS BOARD WILL PRESENT ANNUALLY A BUDGET.

AND, AND THAT'S INCORPORATED AS PART OF OUR BUDGET. BUT THE FUNDS WILL BE BROKEN OUT AND THE EXPENSES WILL BE BROKEN OUT SEPARATE IN TWO SEPARATE ACCOUNTS. BECAUSE REALLY, OUR ROLE WITH THE PARKS BOARD IS NOTHING MORE THAN PERFUNCTORY. IT'S SIMPLY A PASS THROUGH. AND IT ISN'T AS IF WE, WE REALLY, YOU KNOW, REVIEW THEIR BUDGET OR THEIR, THEIR PROJECTS WITH ANY SORT OF SCRUTINY AT ALL. IT'S REALLY JUST A MATTER OF THE WAY THE STRUCTURE WAS SET UP ORIGINALLY. AND IT PASSES THROUGH AS AS A SINGLE ENTITY. WE TAKE THAT IN, WE PROCESS IT WITH OUR BUDGET. IT'LL SHOW UP AS ITS OWN, AS ITS OWN STANDALONE, AND THEN WE'LL PASS IT ON TO THE COUNCIL FOR APPROVAL AS WELL. OKAY. ALL RIGHT. THAT'S IT FOR SEPTEMBER.

ANY ADDITIONAL QUESTIONS? YEAH, I KNOW I'M NOT THERE, BUT WHEN WE HAD GONE BACK AND THIS IS RELEVANT BECAUSE OF OUR PRESENTATION THAT WE'RE GOING TO DO AT CITY COUNCIL MEETING, ACTUALLY WHEN IT GOES TO CITY COUNCIL IS IF. DDC REJECTS WHAT THE PARK BOARD DOES, THAT'S THE ONLY TIME THAT THE THAT THE COUNCIL WOULD ACTUALLY HAVE AN OPPORTUNITY TO LOOK AT IT ACCORDING TO HOW THE BYLAWS ARE WRITTEN. SO THERE'S SOMETHING ON THE AGENDA TONIGHT. AND IF YOU ALL VOTE, VOTE IT UP. THEN IT REALLY PASSES AND IT GOES TO CITY COUNCIL FOR CITY COUNCIL TO SEE. THE CITY COUNCIL IS LIKE THE REFEREE. THE PARK BOARD SAID, WE WANT IT AND YOU ALL SAY, NO, WE DON'T WANT IT. THEN IT GOES TO CITY COUNCIL AND CITY COUNCIL THEN BECOMES THE BODY THAT DETERMINES WHAT WILL HAPPEN FROM THERE. SO REMEMBER THAT THE SEPTEMBER IS ACTUALLY THE YEAR END AS WELL. YES. SO OCTOBER AND NOVEMBER IF TRACY, IF YOU WANT TO RUN ON THROUGH THOSE, THAT WOULD BE GREAT. I THINK OCTOBER ACTUALLY WAS IN HERE FIRST, BUT YES, OCTOBER AND NOVEMBER TOGETHER. BASICALLY YOU JUST HAVE PICTURES FOR THE MONTH. I REMEMBER SALES TAX IS TWO MONTHS BEHIND. SO THE MONEY THAT CAME IN IN OCTOBER AND NOVEMBER WAS ACTUALLY FOR AUGUST AND SEPTEMBER, AND IT WAS RECOGNIZED IN THE PREVIOUS REPORT. WE DO HAVE, YOU KNOW, BASIC SALARY AND EXPENDITURES FOR THE MONTH, FOR OCTOBER AND NOVEMBER, SAYING, I THINK WE DID, YOU. NO, WE DIDN'T DO THIS. SO WE JUST GOT NORMAL OPERATING EXPENDITURES FOR OCTOBER. SO THIS I'M SORRY, THE REVENUES AND EXPENDITURES THROUGH OCTOBER. THAT'S JUST FOR THAT'S FOR HOW MANY MONTHS? JUST FOR. SO IF I LOOK AT CURRENT MONTH ACTUALS ON REVENUE SIDE, INTEREST REVENUE OF 29. THREE.

YEAH. ACTUAL CURRENT YEAR TO DATE. THAT SHOULD BE 29. 3 OR 8. OKAY. SO IT SHOULD BE THE SAME.

YEAH. OKAY. AND THEN ON THE EXPENDITURE SIDE, I DON'T WANT TO MAKE ASSUMPTIONS, BUT IF I LOOK AT SALARIES COMPARED TO LAST YEAR AND SOME OF THE IS THAT ADDITIONAL PERSONNEL. WHY IS WHY IS IT A IF YOU DO HAVE ADDITIONAL PERSONNEL FROM THE PDC? IT'S I'M NOT I DON'T THINK

[00:15:01]

BUT IF THERE'S IF THERE'S A LINE ITEM THAT'S NOT INCLUDED OR THAT IS, IS DELAYED FOR WHATEVER REASON THAT WILL BE NOTATED CORRECT. IT'LL DEPEND ON THE ITEM. WELL, ALL I'M SAYING IS THAT IF IN FACT, WE HAVE SOMETHING THAT NEGATES THE QUESTIONS THAT PEOPLE MAY BE RAISED FOR PEOPLE, FRANKLY SPEAKING. YEAH. WELL, LET'S SEE WHAT THOSE QUESTIONS LOOK LIKE.

AS A GENERAL RULE, IF WE HAVE A LARGE EXPENDITURE FOR AN INCENTIVE PAYMENT OR WHETHER IT'S A PREPROGRAMED INCENTIVE PAYMENT YEAR OVER YEAR OVER YEAR, OR IT'S ONE THAT WE'VE RECENTLY PASSED AND IT'S GOING TO HIT IN THAT PARTICULAR MONTH, WE'VE USUALLY, AS A GENERAL RULE, KIND OF FLAGGED THOSE BECAUSE IT MAKES SIGNIFICANT CHANGE IN TERMS OF THAT PARTICULAR LINE ITEM MOVES A SIGNIFICANT AMOUNT IN THAT PARTICULAR MONTH. WE'VE TRIED TO DO THAT. AND I THINK IN MOST CASES. SO ARE YOU SAYING BECAUSE WE'VE MOVED TO MONDAY, THAT THE DATA THAT WE SEE WHEN WE MEET, IT'S GOING TO BE LAGGING EVEN MORE? YES, BECAUSE WE MOVED TO MONDAY A WEEK EARLIER. IT'S REALLY NOT MONDAY TO THURSDAY. IT'S MONDAY A WEEK EARLIER IN THE MONTH THAT WE'LL END UP HAVING OUR OUR FINANCIALS BEING A MONTH IN, IN IN ARREARS. I WOULD THINK WE'D HAVE WE'D BE CAUGHT UP FROM THE PREVIOUS MONTH THOUGH. WELL, LET ME GIVE

[00:20:05]

AGAIN, IT DOESN'T CHANGE THE FINANCIALS. IT JUST CHANGES WHEN WE'RE LOOKING AT THE REPORT AND WE'RE NOT SAYING IT'S CHANGING THE FINANCIALS TO YOUR POINT, BUT WE ARE SAYING IF THERE ARE ANY OBSERVATIONS THAT DIDN'T NEED TO BE NOTED, THAT THEY'RE NOTED. THAT'S ALL WE'VE ALL WE'VE ALWAYS DONE THAT. YES, SIR. SO. ANY ADDITIONAL QUESTIONS? OBSERVATIONS. OKAY.

THANK YOU TRACY. THANK YOU. GOT ONE MORE MONTH AND NOVEMBER. NOVEMBER. BASICALLY, IT WAS JUST ONCE AGAIN SALES TAX THAT WAS COLLECTED IN NOVEMBER WAS ACTUALLY FOR SEPTEMBER. AND THEN YOU HAVE YOUR NORMAL OPERATING EXPENDITURES. THE FACT THAT IT CONTINUES TO LAG BEHIND ON.

SALARIES. TRACY. MAKES ME WONDER IF YOU ARE RIGHT THAT THERE WAS A PIECE OF THAT TO CHANGE WHEN WE MOVED FROM UNITS. I WILL GET THAT INFORMATION TO YOU. I'M SORRY. ONE MORE CLARIFICATION, PLEASE. SO? SO WHEN YOU HAVE THE NARRATIVE HERE THAT SAYS SALES TAX REVENUE WAS UP FROM THE PREVIOUS YEAR. DO YOU HAVE A REASON WHY IT'S A NOT EVERY SINGLE TIME. NO. WHAT DOES THAT MEAN. WELL IT'S THE REPORTING THAT THEY GIVE IS VERY I MEAN YOU'RE GOING TO SEE IN THE NEXT SOME OF THE EXPLANATION THEY'RE GOING TO GIVE. IT'S VERY DIFFICULT TO TELL FROM MONTH TO MONTH WHAT INDUSTRY IS INCREASED. I MEAN, WE CAN PROBABLY HIRE SOME CONSULTANTS TO FIGURE THAT OUT. WELL, WITH THE SOFTWARE, YOU'LL BE ABLE TO DO THAT, RIGHT? NO. YOUR SOFTWARE, YOU'LL SEE WHAT THE SOFTWARE TELLS YOU QUARTERLY BASIS OR ON A QUARTERLY BASIS, YOU'LL BE ABLE TO NOTICE TRENDS. THERE'S JUST NOT MUCH DIFFERENCE BETWEEN WE STARTED DISSECTING IT WHEN WE TOOK THE SOFTWARE FOR THE TEST DRIVE, IF YOU WILL. OKAY. WE STARTED LOOKING AT IT MONTH BY MONTH, AND THE CHANGES WERE JUST NOT RELEVANT. BUT ON A QUARTERLY BASIS, YOU STARTED TO SEE CYCLICALITY, YOU KNOW, THINGS LIKE THE DECEMBER OR THE HOLIDAY PERIOD. YOU PRETTY MUCH KNOW OCTOBER, NOVEMBER, DECEMBER. YOU STARTED TO BE ABLE TO SEE SOME PEAKS THERE. BUT AS LONG AS YOU GO ON UP, EVERYBODY'S OKAY. WELL, IN SOME CASES THEY GO DOWN. NO, BUT IF YOU LOOK AT IT BUT YOU GET A SLOWDOWN IN THE ECONOMY FOR WHATEVER REASON, YOU'RE GOING TO WANT TO KNOW. THAT'S RIGHT. AND TO THAT POINT, IF I COULD I'M SORRY TO THAT POINT. I WAS SAYING THAT DURING THE TIME OF COVID, YES, OUR SALES TAX AND EVERYONE ELSE'S SALES TAX WAS ACTUALLY TRENDING DOWN. THAT QUESTION WAS ASKED AND WE KNEW THAT OURS WAS TRENDING UP BECAUSE OF ONLINE SHOPPING AND BECAUSE OF. AND SO IT WAS MORE IT WAS MORE WE COULD DEFINE IT A BIT MORE BECAUSE WE KNEW WHAT WAS HAPPENING IN THE ECONOMY, NOT NECESSARILY WHAT WE KNEW SPECIFICALLY WHERE. AND THEN WE WERE GETTING A REPORT. I THINK AT THAT TIME, IF I'M NOT MISTAKEN, WE WERE GETTING REPORTS FROM KOHL'S AND WE SAW THEIR NUMBERS NOT INDIVIDUALLY GO UP BECAUSE THERE WAS A AN INCENTIVE AGREEMENT WITH THEM. SO NOW THAT THOSE INCENTIVE AGREEMENTS ARE NOT NECESSARILY THERE, I THINK TO YOUR POINT, IT MIGHT WE MIGHT HAVE TO TAKE A FRESHER LOOK OUTSIDE OF JUST WHICH WAY THE ECONOMY IS TRENDING. IS THE ECONOMY SLOWING DOWN? JUST BROAD, BROAD STROKES? I KNOW LOCALLY WE WERE THE ONLY CITY DURING COVID WHERE SALES TAX ACTUALLY WENT UP. DURING COVID. EVERYONE ELSE LOST THEIR BUTTS BEHIND SALES TAX EXCEPT US. I THINK WE'LL GET SOME CLARITY WHEN WE LOOK AT THE REPORT THAT COMES AFTER THESE.

THAT GIVES YOU A LITTLE MORE INSIGHT INTO THE COMPONENTS OF OUR SALES TAX BY BY SECTOR. AND THE OTHER PIECE THAT THAT I'LL REMIND YOU IS WHEN WE LOOK AT THAT DATA, WE ACTUALLY HAVE IT ON A COMPANY BY COMPANY DATA. WE CANNOT REPORT IT THAT WAY. SO WE CAN ONLY THE SMALLEST THAT WE CAN TAKE IT DOWN TO IS BY SECTOR. AND THAT'S WHAT WE'VE DONE IS TO TREND THOSE SECTORS THAT WERE MEANINGFUL AND TRY TO GIVE YOU SOME INSIGHTS IN TERMS OF JUST HOW IT PLAYS OUT QUARTER

[00:25:05]

SOMETHING THAT WAS JUST CHANGED, BUT WE CAN'T IDENTIFY AN ACTUAL EXECUTIVE SESSION. I'M SORRY. IT DOESN'T FIT WITHIN A LOUD CATEGORY FOR EXECUTIVE SESSION. OR FOR IF I KNEW WHAT A PERSON'S SALES TAX WERE, I CAN BAG INTO THEIR TO THE WEALTH, TO THE VALUE OF THEIR COMPANY. SO NORMALLY THOSE THINGS ARE NEVER DISCLOSED TO THAT LEVEL, EVEN IN BECAUSE WE CAN ALWAYS BACK. YOU CAN TAKE THAT NUMBER, DIVIDE IT BY THE SALES TAX. AND YOU KNOW WHAT THE WHAT THEIR INCOME WOULD BE. SO THANK YOU. THANK YOU. THANK YOU. ANY FURTHER QUESTIONS? OBSERVATIONS. OKAY.

SO THE ONLY ONE I'LL MAKE IF YOU LOOK AT THE TOP OF THESE REPORTS EACH EACH TIME YOU'LL SEE UNDERNEATH NOVEMBER 17TH PERCENT OF THE BUDGET YEAR. SO IN A PERFECT WORLD, ALL OF YOUR EXPENSES WOULD BE AT 17% OF WHAT YOUR TOTAL EXPENSES ARE. AND THAT WAY IT TRACKS FROM MONTH TO MONTH TO MONTH. CORRECT. THE ISSUE BECOMES OUR BUDGETING. IN ORDER TO GET TO A BALANCED BUDGET. WE HAVE SEVERAL NUMBERS IN OUR BUDGET THAT ARE PLUG NUMBERS. THEY DON'T THEY THEY AREN'T SPENT. THEY HAVE NO BASIS IN IN THAT THERE ARE CONTRACTS FOR THOSE. THEY ARE NOTHING BUT PLUG NUMBERS. ONE OF THOSE IS THE ADVERTISING. THE PIECE THAT YOU SEE IS $275,000. IF YOU'LL NOTE, IT IS LITERALLY 10% OF OUR TOTAL EXPECTED REVENUES. AND IT'S WHAT WE'RE ALLOWED BY THE STATE TO BUDGET FOR THAT ACTIVITY, EVEN THOUGH WE DON'T KNOW WHAT THE ACTIVITIES THAT ARE GOING TO BE IN THAT CATEGORY ARE FROM YEAR TO YEAR, WE BANK THAT AMOUNT AND THAT IS WHERE WE THAT IS THE LINE ITEM WHERE WE USE FOR FACADE GRANT IMPROVEMENTS, FACADE IMPROVEMENT GRANTS, AND THAT ACCUMULATES FROM YEAR TO YEAR. IF WE DON'T SPEND IT, WE HAVE IT TO ACCUMULATE. AND THAT'S WHAT ALLOWS US TO THEN CONSIDER SOME OF THE IN SOME CASES, THESE LARGER FACADE GRANTS THAT WE'VE THAT WE'VE DONE OVER THE LAST COUPLE OF YEARS. BUT AT SOME POINT WE DEPLETE THAT. RIGHT? SO IT ENDS UP HAVING TO ACCUMULATE EACH YEAR. SO JUST KNOW THAT THAT'S ONE OF THOSE PLUG NUMBERS. AND IF YOU TAKE THIS BACK TO, YOU KNOW, WE ESSENTIALLY DO ZERO BASED BUDGETING EVERY YEAR. WE LOOK AT EVERY ITEM, WE LOOK AT EVERY EVERY ITEM THAT MAKES UP THAT ITEM TO LOOK AND IDENTIFY WHETHER OR NOT THE WE FEEL LIKE THERE'S SUFFICIENT RETURN ON THOSE INVESTMENTS. WE DON'T DO IT ON A LINE BY BY LINE ITEM IRR OR INTERNAL RATE OF RETURN OR RETURN ON INVESTMENT. IT WOULD BE FAR TOO COMPLEX TO DO THAT.

BUT BUT THE IDEA IS THAT WE WANT TO KNOW WHAT WE'RE SPENDING MONEY ON WHEN WE PUT THAT BUDGET TOGETHER. SO WE LOOK THROUGH THAT AND SAY, WOW, YOU KNOW, THAT CONFERENCE DIDN'T WORK OUT SO WELL, OR THAT WE'RE CHANGING INDUSTRY SECTORS, SO WE'RE NOT GOING TO FOCUS ON THAT ANYMORE.

AND WE MAKE THOSE CHANGES YEAR TO YEAR. THOSE ARE REFLECTED FROM YEAR TO YEAR. THE OTHER ITEM THAT YOU'LL SEE THAT IS ANOTHER PLUG NUMBER IN HERE IS BUSINESS GRANTS. IT ISN'T AS IF WE HAVE A MILLION, $280,000 OF BUSINESS GRANTS THIS YEAR. THAT'S SIMPLY WHAT IS LEFT OVER AFTER WE TAKE OUR REVENUES LESS, OUR OPERATING EXPENSES LESS, THE AMOUNT FOR ADVERTISING. WHAT'S LEFT OVER CREATES THAT BUSINESS GRANTS LINE ITEM. THAT'S ESSENTIALLY THE POTENTIAL YOU HAVE IN THAT PARTICULAR YEAR FOR BUSINESS GRANTS. THAT'S WHAT'S THERE. AND IF WE DON'T USE IT, IT GOES BACK TO THE FUND BALANCE AT THE END OF THE YEAR. SO IF WE WERE ONLY TO CREATE BUSINESS GRANTS THIS COMING YEAR OF $500,000, THEN WE WOULD PUT BACK INTO THIS FUND BALANCE. THE FUND BALANCE WOULD INCREASE AT THE END OF THE YEAR BY $780,759. SO IN OTHER WORDS, WE'RE TAKING RATIOS BASICALLY. NO, THEY'RE NOT REALLY RATIOS. THEY'RE THEY ARE THEY ARE. IN THAT CASE IT IS IT IS JUST A HARD NUMBER. THAT'S THE TOTAL REVENUES LESS THE OPERATING EXPENSES LESS THE ALLOWED AMOUNT TO A RATIO OF 10%. BUT THEN WHAT'S LEFT AFTER THAT HAS NOTHING TO DO WITH THE RATIO. IT'S WHAT'S LEFT. AND WHAT'S PUT IN THERE IS BASED ON THE RATIO OF THE MAX THAT WE CAN DO. ONLY FOR THAT ONE ITEM IS BASED ON THE RATIO OF WHAT WE CAN DO, THE REST OF IT. AND IN SOME CASES OF THAT 1.2 MILLION, SOME OF THAT'S ALREADY SPOKEN FOR IN OUR GRANT, SOME OF THAT'S ALREADY SPOKEN FOR IN OUR ONGOING KOHLER GRANT. SO SOME OF THOSE NUMBERS ARE ACTUALLY FIXED

[00:30:07]

OKAY. THAT THAT TAKES ONE HALF OF REMEMBER THE CITY SALES TAX IS 2%, RIGHT. OF THAT 2%, ONE QUARTER OF IT OR ONE HALF COMES TO THE DEVELOPMENT CORPORATION. RIGHT, OF THAT ONE HALF, ONE QUARTER OF THAT GOES TO THE PARKS AND REC BOARD AND THREE QUARTERS OF ONE HALF. SO ESSENTIALLY THREE, 3/8 OF A CENT COME TO THE DEVELOPMENT CORPORATION. THAT'S WHAT THAT 2.7 ODD NUMBER IS. YES. SO IF OUR SALES TAXES GO UP, OUR REVENUES GO UP. NOW, IN ADDITION TO THAT, AND WE'RE NOT LIMITED IN TERMS THAT WE CAN'T EARN REVENUES. SO REMEMBER SALES SAID DEVELOPMENT CORPORATION. THAT'S MY QUESTION. DEVELOPMENT CORPORATIONS ARE SPECIFICALLY SET UP WITH THE AND EMPOWERED. AND VICTORIA, YOU MAY BE BETTER OFF TO ANSWER THIS THAN I AM ARE EMPOWERED TO PURCHASE, DEVELOP, LEASE AND SELL PROPERTY. WE ARE, WE ARE SPECIFICALLY MADE AND EMPOWERED TO DO THOSE THINGS THAT FRANKLY, A CITY CAN'T. A CITY CAN'T HAVE A DEED ENCUMBRANCE ON A PIECE OF PROPERTY. WE CAN. AND THAT'S WHAT REALLY DIFFERENTIATES US AND IS HAVING THAT ABILITY. THIS CORPORATION HAS NO HISTORY OF MAKING THOSE KINDS OF INVESTMENTS. BUT IN MANY DEVELOPMENT CORPORATIONS, THEY'LL GO AND BUY A THOUSAND ACRES OF LAND, AND THEN THEY'LL GO IN AND DO THE HORIZONTAL DEVELOPMENT ON IT, AND THEN THEY'LL PARCEL THAT OFF AND THEY'LL SELL IT, OR THEY'LL LEASE IT TO A TO AN ONGOING ORGANIZATION. SO THEY'LL ATTRACT THE BUSINESS. THEY'LL LEASE IT TO IT. THERE ARE SOME WHO HAVE BEEN SO SUCCESSFUL THAT THEY'VE ACTUALLY, AT THE END OF A LONG PERIOD OF TIME, TURN AROUND. SO THERE ARE OTHER SOURCES OF WE COULD BE GENERATING OTHER. I'M NOT SAYING WE WILL, BUT THEY IN FACT, COULD YOU IN FACT, COULD GENERATE SOURCES FROM LEASING PROPERTY. DEVELOPING PROPERTY. I THINK YOU'VE HEARD ME SAY NUMEROUS TIMES THAT THERE'S NO HISTORY OF THAT IN THIS, IN THIS DEVELOPMENT CORPORATION. YEAH. BUT I THINK WE ARE WE'RE GOING TO BE ASKED TO FILL THOSE SHOES FOR, FOR WHATEVER KINDS OF PROJECTS THOSE LOOK LIKE. YOU'LL REMEMBER AT OUR BOARD RETREAT THIS LAST YEAR, I SUGGESTED TO YOU, I THINK IT BEHOOVES US TO GET SOME HELP FROM FROM DEVELOPMENT CORPORATION FINANCE FOLKS THAT TALK ABOUT WHAT ARE THE VARIOUS BUCKETS THAT YOU HAVE OF REVENUE SOURCES. HOW CAN YOU UTILIZE THOSE? WHERE ARE THEY BEST UTILIZED? WHERE ARE

[00:35:01]

WELL, WE DON'T WANT TO HEAR FROM THEM. WELL THERE'S NOT THERE'S NOT NECESSARILY WANT TO LEARN.

WE WANT TO LEARN FROM THEIR MISTAKES. THEY WANT TO LEARN ABOUT IT, READ ABOUT THEM AND HEAR FROM THE PEOPLE DOING IT RIGHT. THAT'S RIGHT. THAT'S WANT TO READ ABOUT WHO DIDN'T DO RIGHT AND HEAR FROM WHO DID IT RIGHT. THAT'S RIGHT. BUT THERE IS INHERENT RISK TO DOING TO DOING BUSINESS LIKE THAT. THERE IS AN OPPORTUNITY. I MEAN, WE HAVE THE OPPORTUNITY TO BOND AGAINST OUR FUTURE, OUR FUTURE CASH FLOWS. AGAIN. THAT'S ONE OF THOSE THINGS THAT STATE STATUTE SPECIFICALLY ALLOWS US TO DO. WE'RE NOT WE'RE NOT AS CREDITWORTHY AS, SAY, THE CITY IS THE FULL FAITH AND CREDIT OF THE CITY. BUT WE STILL HAVE. AND VICTORIA HELPED ME. WE HAVE TAX PREFERENTIAL BONDS. YEAH, THAT'S A GOOD JOKE. BUT LET ME JUST SAY, OBVIOUSLY THIS IS A HEALTHY SUBJECT. OKAY. AND SO AS YOU'RE EXPLAINING RIGHT NOW, THIS NEEDS TO BE ANOTHER MEETING THAT WE NEED TO SIT DOWN AND HAVE UNDERSTANDING FRANKLY KIND OF GETS TO WHAT I WAS SAYING EARLIER, MAYBE SOME KIND OF CHEAT SHEET OR SOMETHING THAT WE HAVE POINT OF REFERENCE, BECAUSE YOU HAVE THE EXPERTISE AND WE NEED TO GLEAN BETTER WHAT WE CAN OR CAN'T DO OR WHAT NEW PATH WE NEED TO HEAD DOWN. SO THIS WILL HELP US ALL. SO PLUS WE HAVE TO BE WILLING TO UNDERSTAND WHAT OUR CITY COUNCIL YES IS UP FOR. SO WE HAVE TO IF WE GOT TO GET, WE GOT TO GET EXPLAINED TO US.

YES, WE HAVE TO GET EXPLAINED TO OUR COUNCIL RIGHT, TO MAKE SURE THAT THEY'RE ON BOARD BECAUSE WE CAN'T DO ANYTHING WITHOUT THEM. THAT'S RIGHT. PAUL. PAUL, WHO'S SITTING BEHIND YOU, WHO SITS ON THE PARKS AND REC BOARD HAS KIND OF LIKE, YOU KNOW, A HISTORY AND A CAREER IN THIS. YEAH. SO THIS IS KILLING ME. SO BACK IN WE VOTED THAT SALES TAX BACK IN 1992. THERE YOU GO. I WAS ONE OF THE COAUTHORS AND THE FIRST PRESIDENT OF THE PARK DEVELOPMENT CORPORATION. BEFORE V CORPORATION, WE STARTED IN 1993. WE DID PURCHASE 100 ACRES OF PROPERTY, AND THAT'S NOW MCALLEN PARK BACK THEN. AND WE WERE GOING TO BUILD A WATER PARK ON THAT PROPERTY, LIKE IN OUR H2O IN NORTH RICHLAND HILLS. AND THE IDEA WAS TO LITERALLY FUND THE ENTIRE PARK SYSTEM HERE WITH THAT REVENUE. IT GOT POLITICALLY SHOT DOWN. AND THEN I ROTATED OFF THE BOARD. AND SO IT BASICALLY SAT THERE, BUT WE HAD THE RIGHT TO SELL IT IF WE WANTED TO FOR DEVELOPMENT. WE DID SELL OUR SALES TAX MONEY. WE SIMPLY PARLAYED THAT AND SOLD DEBT AND LITERALLY BUILT THE ENTIRE PARK FOR THE WHOLE PARK SYSTEM. WE REBUILT JUST BY LEVERAGING THOSE FUNDS. I'VE DONE THIS BEFORE. I KNOW HOW TO DO IT. THAT'S WHY I'M BACK ON THE PARK BOARD AGAIN. IT'S KIND OF WE SORT OF FORGOTTEN HOW TO DO THESE THINGS, BUT WE HAVE A HUGE, HUGE RESOURCE AT OUR FINGERTIPS. AND YOU AND I HAVE MET. YES, I THINK ALL OF US ARE ON THE SAME PAGE. WHEN I REREAD THE BYLAWS TO THE PARK, THE CORPORATION OR THE PARK PARK BOARD AND THE EDC, WE'RE ESSENTIALLY IN LOCKSTEP, GUYS. YES. PARKS ARE ECONOMIC DEVELOPMENT. IF YOU'RE IN REAL ESTATE AT ALL, THE VERY FIRST THING YOU'RE GOING TO BE ASKED IS FOR BY A YOUNG COUPLE IS SCHOOLS. AND THEN CITY AMENITIES. WHAT DO WE GET HERE? WHAT'S OUR LIBRARY LOOK LIKE? WHAT ARE OUR PARKS LOOK LIKE? THINGS LIKE THAT. SO IT'S A IT'S AN ATTRACTOR AND IT'S WHAT BRINGS PEOPLE TO THIS TOWN THAT GETS PEOPLE HERE. NOW WE GOT TO KEEP THEM HERE. THANK YOU. OKAY.

SO THAT'S. ANYWAY, I JUST KIND OF WANT TO GET YOU CAUGHT UP. THE OLD DAYS, 30 YEARS AGO, WE DID ALL THIS, AND IT WAS BEAUTIFUL. AND IT WAS A LOT OF FUN. AND IT WAS REALLY EXCITING.

YOU KNOW, THE CITY WAS WAS ALL ON BOARD. WE'RE ALL ON THIS, EVEN EVEN ENEMIES. IT WAS AMAZING. SO ANYWAY, YES, WE'VE DONE THIS BEFORE AND YOUR QUESTIONS ARE VERY, VERY VALID.

ABSOLUTELY. HOW DO YOU TURN THIS PIECE OF REVENUE INTO OTHER REVENUE STREAMS ALONG THE WAY? SO YES, IT'S VERY DOABLE. OKAY. THANK YOU FOR SHARING THAT. THANKS, PAUL. TO PAUL'S POINT, IF YOU WERE GOING TO EXPLODE, THEY'RE TRYING TO GET EVERYBODY AS EXCITED AS I AM. WELL AND THERE ARE. AND PART OF OUR DISCUSSION THIS EVENING IS TO TALK ABOUT SOME OF THE USES THAT

[00:40:04]

THAT'S I THINK WHAT WE WANT TO CREATE A FINANCING PLAN FOR THE DEVELOPMENT CORPORATION. THAT WAS ONE OF THE THINGS WE SUGGESTED AS A PART OF OUR BOARD RETREAT THAT YOU ALL SAID, GO FORTH AND DO AS PART OF OUR WORK PLAN FOR THIS YEAR, AND THAT SHOULD BE THE PARALLEL PATH SO THAT WE'RE NOT LOOKING AT SEPTEMBER, ANOTHER RETREAT OR OCTOBER. AND WE'VE ALREADY GOT THAT IN THE WORKS. SO THAT'S A GOOD ONE. YEAH. GOOD FOLLOW UP. YEAH. ABSOLUTELY. THANK YOU.

HEALTHY DISCUSSION. FRANKLY SPEAKING. GREAT OBSERVATION. SO ANY OTHER QUESTIONS ON THE SUBJECT MATTER OBSERVATIONS. LET ME BEFORE WE GO TO REVIEW OF THE SALES TAX TRENDS OKAY. LET ME NOT BE REMISS. JUST SO YOU KNOW, WE HAVE VIRTUALLY. NO DIRECTOR DOCTOR GARRETT PRICE ON WITH US AS WELL. I WANT TO BE SURE TO ACKNOWLEDGE, DOCTOR PRICE. HOW ARE YOU DOING, SIR? IN ESSENCE, WE HAVE A FULL BOARD TONIGHT WITH US. SO AS NOW, WE'LL GO FORWARD WITH THE REVIEW OF THE

[B.3. Review of Sales Tax Trends for FY 24 - Tracy Cormier, Director Financial Services & Matt Carlson, Chief Executive Officer]

IT'S A IT'S A TWO WAY MIRROR BETWEEN THE TWO, THE TWO ENTITIES. SO IF YOU WANT TO TALK A LITTLE BIT ABOUT WHERE YOU STARTED AND WHAT YOU STARTED TO LEARN, BECAUSE QUITE FRANKLY, THIS TOOK US MULTIPLE ITERATIONS OF A NEW PIECE OF SOFTWARE WITH A BAJILLION DATA POINTS THAT THAT WERE A LITTLE BIT ON THE MIND NUMBING SIDE, BECAUSE WE LITERALLY GET NOW USING THIS QUARTER BY QUARTER, I THINK IT WAS QUARTER, IF I'M NOT MISTAKEN, QUARTER BY QUARTER, COMPANY BY COMPANY, INCLUDING INTERNET SALES FOR EVERY ENTITY AND EVERY TRANSACTION. SO

[00:45:02]

SIMILAR SALES AND SO GENERAL MERCHANDISE GROCERY SALES, RESTAURANT SALES, AUTOMOBILE SALES, YOU GET THE IDEA. I'M NOT LOOKING AT AT THE TOYOTA VERSUS THE NISSAN VERSUS THE FORD. WE COULD WE CAN'T REPORT IT THAT WAY TO YOU. BUT WHAT WE DID WAS TO GET SOME EFFORT OF TRYING TO FIGURE OUT WHAT WAS MEANINGFUL, SO THAT WE HAD SOME UNDERSTANDING OF WHAT TRENDS LOOKED LIKE, BECAUSE IT WAS PRETTY CLEAR. I THINK THAT'S WHAT THIS BOARD WAS ASKING FOR, WAS NOT POINT BY POINT DETAIL. YOU WERE LOOKING AT. TELL US KIND OF WHAT'S GOING ON IN OUR ECONOMY. SO YOU WANT TO RUN THROUGH IT AND I'LL STAND BEHIND YOU AND EITHER WAY, BEHIND YOU OR RIGHT BEHIND YOU, DEPENDING ON WHERE YOU GO. OKAY. SO WE TOOK THE QUARTER THREE OF 2023 THROUGH QUARTER THREE OF 2024 AND LOOKED AT THE SALES TAX TRENDS. AND WE FOUND THE TOTAL SALES TAX BETWEEN THAT TIME PERIOD WAS $16,103,889.32. AND THEN IN THE NEXT SLIDE, WE BROKE THAT DOWN INTO THE CATEGORIES THAT ARE CONTRIBUTING TO THAT NUMBER. WE FOUND THAT THE TWO LARGEST GENERATORS OF ALL THOSE CATEGORIES WERE ACCOMMODATION AND FOOD SERVICE AND RETAIL TRADE. SO ON THE NEXT SLIDE THAT'S A LOOK AT THOSE TWO. YOU WILL SEE THERE'S NOT MUCH CHANGE FROM THE FIRST ONE THAT SHOWED ALL CATEGORIES TELLING US THAT. THAT'S BY FAR THE TWO LARGEST CONTRIBUTORS TO OUR SALES TAX. AND THEN IN THE NEXT ONE WE SHOW WHAT IS THAT CHART SHOWING ME THE SALES TAX REVENUE GENERATED BY ACCOMMODATION AND FOOD SERVICE AND RETAIL TRADE. SO WHAT DOES THE TREND LINE TELL ME? DOWN? BUT THAT'S WHAT WE EXPECT. BUT THAT COULD BE THAT SEASONALITY PERHAPS OKAY. 224. OUR SECOND MOST. THANK YOU THAT. STAGE TWO THREE. YEAH. SO CAN I ASK A QUESTION. YES. THERE WE ARE. YES. NEXT PAGE. AGAIN I GOT THAT NEXT WEEK. WHAT WHAT WHAT LINE IS THAT. THAT IS THAT IS TRENDING UP. YOU SEE THE GREEN ONE. YES. AGRICULTURE AND FORESTRY. FISHING AND HUNTING IS WHAT IS MANUFACTURING I'M SORRY. THE SECOND ONE. AGRICULTURE.

MANUFACTURING. MANUFACTURING. THAT'S MANUFACTURING. OKAY. BECAUSE EVERYTHING ELSE IS. AND THEN THERE'S ONE WHICH THE ONE THAT ALMOST IT LOOKED LIKE I GUESS IT'S BLUE AT THE BOTTOM THAT HAS A DOWNTICK FROM FIRST QUARTER OF 2024 TO THE SECOND QUARTER OF 2024. YOU SEE THAT WHERE EVERYTHING ELSE IS KIND OF STAYING STATUS, THERE'S ONE THAT IS TRENDING DOWN SLIGHTLY AT THE BOTTOM. IS TRANSPORTATION. SO THEY ALL ARE. LOOK SIMILAR. YES. THEY DO LOOK VERY SIMILAR. SO SIMILAR. YEAH. THE REAL MESSAGE HERE IF YOU WILL. SO THE BLACK LINE THAT PEAKS IN THE MIDDLE THERE, RIGHT. COMES OVER AND PEAKS IN THE THIRD AND THE SECOND QUARTER. WE KNOW ENOUGH ABOUT WHAT'S GOING ON WITH OUR INDUSTRIES. THAT WAS A THAT WAS A SALES TAX ON PURCHASES OF NEW EQUIPMENT FROM ONE OF OUR BUSINESS EXPANSIONS. OKAY. IT'S NOT THAT SOMETHING CRAZY WENT ON IN THAT MONTH. IT'S WHAT REALLY IT LOOKS LIKE IS A MUCH MORE A MUCH MORE FLATTENED LINE THAT TYPICALLY DROPS OFF BECAUSE OF THE BECAUSE OF SEASONALITY, BUT THAT HAD A TREMENDOUS INCREASE IN SALES BECAUSE IT WAS ASSOCIATED WITH MACHINERY. GOT IT. THAT'S WHAT I WAS LOOKING FOR. SO THAT'S YOUR MANUFACTURING LINE. YOU SEE A COUPLE OTHERS THAT KIND OF FOLLOW ALONG THAT CONSTRUCTION SUMMER PERIOD, WINTER PERIOD. SO YOU CAN START TO SEE. BUT IF YOU LOOK AT THESE AND YOU LOOK CLEAR OVER HERE ON THE LEFT HAND COLUMN, YOUR BREAKDOWN BETWEEN

[00:50:03]

SO WE WOULD HAVE TO HAVE OTHER PLAYERS DOING THIS VERY SAME THING, WHICH OBVIOUSLY WE DON'T.

SO WE REALLY START TO LOOK AT OURS AND START TO ASK OUR SELVES, DOES IT MAKE SENSE? DO WE DO WE BELIEVE WHAT WE'RE SEEING AND THEN START MAKING SENSE OUT OF IT IN TERMS OF. AND THEN WE STARTED JUST POINT CHECKING WHEN WE SAW IN THIS CASE YOU'LL SEE LARGEST TWO ECONOMIC DEVELOPMENT OR THE LARGEST TWO ECONOMIC DRIVERS ACCOMMODATIONS AND FOOD SERVICES. NOT A HUGE SURPRISE RIGHT. AND RETAIL TRADE NOT A HUGE SURPRISE. THINK OF THAT AS AND WHAT THAT ACTUALLY BREAKS DOWN TO. AND THAT'S REALLY WHERE YOU GET TO THE NEXT SLIDE. SO WE TOOK THOSE TWO RETAIL TRADE AND ACCOMMODATION SERVICES IF YOU'LL IF YOU'LL GRANT ME THAT THOSE WERE THE TWO BIGGEST DRIVERS. AND THEN YOU DRIVE THAT DOWN TO THE SECTOR LEVEL. AUTOMOBILE DEALERS, BEER AND WINE BUILDING MATERIALS, DEPARTMENT STORES, DRINKING PLACES, ELECTRONICS, FURNITURE STORES. YOU CAN SEE THAT DEPARTMENT STORES IS ABSOLUTELY THE BIGGEST DRIVER OF EVERYTHING WE DO. GENERAL MERCHANDISE IS THE ABSOLUTE LARGEST DRIVER. AND I MEAN BY FACTORS OF, YOU KNOW, MOST OF THESE ARE DOWN UNDER $100,000 AND IT'S OPERATING SOMEWHERE BETWEEN 350 AND $600,000. SO YOU'RE TALKING ABOUT A FACTOR OF TEN. IT'S THAT MUCH LARGER. IT IS THE LARGEST SINGLE DRIVER OF SALES TAX IN OUR COMMUNITY. SO WHAT YOU GET IS OVER. THE REST OF THIS IS ALL CROWDED DOWN HERE. AND IT'S REALLY HARD TO FIGURE OUT WHAT'S WHAT THE DIFFERENCES LOOK LIKE. SO I ASKED SOLELY GO IN AND PULL OUT THAT THAT TOP ONE, GO IN AND PULL OUT DEPARTMENT STORES IN ORDER TO GIVE YOU SOME LOOK AT WHAT THE OTHER CATEGORIES ARE DOING UP OR DOWN HERE. THEY LOOK DEAD FLAT. HERE IT IS. AND TAKING IT DOWN AND BREAKING IT DOWN INTO $5,000 INCREMENTS ON A QUARTER BY QUARTER BASIS. YOU START TO SEE THAT THERE IS, IN FACT, SOME SEASONALITY. BUT IF YOU LOOK AT THE TOTAL AMOUNT THAT'S VARYING BETWEEN THEM,

[00:55:02]

HE'S TALKING ABOUT LABOR EMPLOYMENT. HE'S NOT TALKING ABOUT SALES. HE'S TALKING ABOUT EMPLOYMENT. AND THOSE EMPLOYERS AREN'T HERE. THAT'S WHY 85% OF OUR WORKING ADULTS GET UP AND LEAVE OUR COMMUNITY EVERY DAY. LET'S BRING THOSE OPPORTUNITIES HERE SO THOSE DOLLARS GO ELSEWHERE. THEY EARN THOSE DOLLARS, SOME IN SOME OTHER CITY. AND WHAT WE KNOW AS ECONOMIC DEVELOPERS AND BIG STUDIES THAT GET DONE, IS THAT A SIGNIFICANT PORTION OF THOSE DOLLARS THAT ARE EARNED SOMEPLACE ELSE ARE SPENT SOMEPLACE ELSE. SO THEY DON'T BRING THAT HOME TO SPEND IT HERE. RIGHT. SO I GUESS MY QUESTION IS, BASED ON WHAT WE KNOW, RIGHT? AND WHAT WE SEE, THE TREND IS IF ANTOINE IS I WANT TO SAY ANTON. BUT, YOU KNOW, I KNOW, YOU KNOW, IF ANTOINE IS IF HE'S GOING OUT SAYING, WHERE ARE THOSE OPPORTUNITIES, WHERE DESOTO IS BEST POSITIONED IS THERE? I FEEL LIKE THAT THERE'S STILL A WAY FOR US TO COME OUT AND BE ABLE TO SAY, HERE'S WHERE WE SHOULD BE POSITIONING OURSELVES AS A AM I RIGHT? I MEAN, YEAH, I MEAN, YOU'RE TRACKING BECAUSE I THINK IN COMBINATION WITH THIS, THEN WE ALSO LOOK AT THE LEAKAGE REPORT, RIGHT. BREAKING DOWN THE DIFFERENT RETAIL CATEGORIES, WHAT'S NEEDED. WE CAN BREAK THAT DOWN AND HUNT ACCORDINGLY. YEAH. INTERESTINGLY ENOUGH. SO FOR YEARS I MEAN 20 YEARS I'VE HAD ACCESS TO LEAKAGE REPORTS FROM THROUGH ESRI. ESRI HAS RECENTLY.

AND I SUSPECT THE ANSWER IS THEY'RE PROBABLY IF YOU STARTED DIGGING INTO THIS, THE ANSWER IS YOU COULD FINDING LAWSUITS THAT WELL, IT WAS TOO SUDDEN FOR IT TO HAVE CHANGED. THERE ARE NO LONGER LEAKAGE REPORTS THAT LOOK LIKE WHAT WE ARE, WHAT WE HAVE GROWN USED TO, OF LOOKING AND BEING ABLE TO SAY IN SPORTING GOODS, THERE'S THIS MUCH OPPORTUNITY BECAUSE IT'S ALL DONE BASED ON ON RELATIVE POSITIONS. IT'S ALL DONE BASED ON PERCENTAGES THAT IN MOST COMMUNITIES, IF THERE'S THIS KIND OF EXPENDABLE INCOME, IT'S GETTING SPENT ON THESE KINDS OF THINGS. SO THERE'S A WHOLE LOT OF INTERPOLATION THAT'S HAPPENING THERE TO SAY THERE'S $2 MILLION OF SALES OF SPORTING GOODS SALES AND YOU DON'T HAVE ANY. SO $2 MILLION OF YOUR EXPENDABLE INCOME IS GOING TO SOMEPLACE ELSE. I CAN'T TELL YOU WHERE. YOU AREN'T ABLE TO TELL WHERE THOSE GO, RIGHT AT THAT LEVEL. IT'S JUST SAYING THAT THAT'S AN OPPORTUNITY. THAT'S WHAT WE'VE USED TO IDENTIFY AS AS HUNTING GROUNDS, ESPECIALLY WHEN IT COMES WHEN YOU GET THIS INTO RETAIL. YEAH. ONCE YOU FILTER THIS DOWN INTO THE RETAIL INDUSTRY, THAT'S WHERE WE THAT'S WHERE WE IDENTIFY THAT THERE ARE OPPORTUNITIES IN FURNITURE, THERE'S OPPORTUNITY IN SPORTING GOODS. THERE'S OPPORTUNITIES. IF I SAT DOWN AND SAID, WHAT ARE THE THINGS THAT ARE MISSING? I'LL BET AS ENGAGED CITIZENS, YOU HAVE A PRETTY GOOD IDEA ALREADY. I'M PROBABLY JUST AFFIRMING TO YOU WHAT THE NUMBERS ASSOCIATED WITH THAT LOOK LIKE. I'M PROBABLY NOT GIVING YOU ANY MOMENTS ABOUT WHAT'S MISSING IN OUR COMMUNITY. YEAH, AND JUST FOR REFERENCE, YOUR LAST BOARD PACKAGE FROM DECEMBER, IT ACTUALLY INCLUDED A 20 MINUTE DRIVE TIME AROUND DESOTO AND WHAT'S KIND OF THAT LEAKAGE. SO JUST REVIEWING THAT IT DOES HAVE THOSE DETAILS.

[01:00:04]

AND SO, SO MUCH SO THAT THEY SHOULD BE ABLE TO DRILL DOWN. IF I HAD DINNER IN ARLINGTON, SOMEBODY KNOWS. ABSOLUTELY. THEY KNOW THAT I LIVE MY ZIP CODE HERE, BUT THAT CARD WAS USED AT P.F. CHANG'S. YEAH. AND SO AND THEN WHEN YOU BOUGHT TWO PACKS. THE. SPICY CHICKEN AND THE GAP AND PLACER BUXTON, THEY'LL ALL TELL YOU THE LIMITATIONS. THEY HAVE IT AND IT'S AND IT'S BASED ON PRIVACY IS DRIVING IT DOWN. THEY KNOW EXACTLY WHAT YOU SPEND. THEY JUST CAN'T SHARE THAT WITH YOU. SO WHAT YOU GET IS AN AMALGAMATION OF DATA ABOUT WHAT'S BEING SPENT WHERE. BUT WHAT THAT DOESN'T TELL US IS WHAT'S AVAILABLE, WHAT WHAT WE USED TO KNOW WAS WHAT WAS AVAILABLE ON A PERCENTAGE BASIS THAT THAT'S NO LONGER AVAILABLE TO US. SO I CAN TELL YOU THAT IF I WENT AND I LOOKED AT WHAT WAS HAPPENING AT WALMART, RIGHT, WE CAN WE CAN FIGURE OUT THAT THEY'RE COMING FROM ALL THESE DIFFERENT ZIP CODES. THEY'RE COMING AND THEY'RE SPENDING THIS MUCH MONEY ON THE AVERAGE. BUT I CAN'T TELL YOU THAT DESOTO CITIZENS ARE SPENDING MORE THAN CEDAR HILL CITIZENS, BECAUSE THEY'RE NOT ATTACHING IT TO THAT LEVEL OF DATA. IT EXISTS AT THAT LEVEL, JUST LIKE WE HAVE SALES TAX DATA. I SIMPLY CAN'T REPORT IT THAT WAY. SO I HATE TO CLOSE US DOWN ON THIS BECAUSE WE'RE GOING TO BE HERE ALL NIGHT OTHERWISE. BUT BUT I DO WANT TO SAY THAT THERE'S AN OPPORTUNE WORD IN THE INDUSTRY TODAY. AND THAT IS PREDICTABILITY. AND THAT'S WHAT WE WANT TO DO. WE WANT TO UNDERSTAND BETTER. WHERE ARE WE MISSING IT? OKAY. HOW DO WE START EMBRACING PREDICTABILITY FROM OUR STANDPOINT OF SAYING WE GOT A GAP HERE, HOW DO WE CLOSE THAT GAP? AND BASED ON THE INFORMATION THAT'S BEEN SHARED RIGHT NOW, THERE'S SOME INFORMATION YOU SAY THAT'S NOT AVAILABLE. BUT HOW DO WE START LOOKING AT ASCERTAINING WHAT IS AVAILABLE FOR US AND WE START BUILDING OUR OWN, SO TO SPEAK, SO THAT WE START LOOKING MORE FROM THE ASPECT OF WHAT CAN WE DO VERSUS WHAT WE CAN'T DO. I THINK THAT'S WHAT WE'RE GOING TO HAVE TO GO THERE. WELL, WE'RE ALREADY WORKING ON EXACTLY THAT.

YEAH. OF AGAIN, IT'S SORT OF IT'S ALMOST THE MIRROR IMAGE IF YOU WILL. YEAH. BECAUSE WE'VE HAD THIS DATA IN THE PAST. BUT WHAT YOU REALLY LOOK AT WHAT IT USED TO TELL ME, WHAT WASN'T THERE. WELL THE MIRROR IMAGE OF THAT IS WHAT IS. YEAH. SO IF YOU CAN LOOK AT IT IN A MIRROR, YOU CAN SEE THAT THERE'S SOMETHING MISSING. THERE'S, THERE'S IT'S THE BLACK HOLE THAT YOU'RE TRYING TO FIGURE OUT. YEAH. THAT THAT'S ESSENTIALLY WHERE WE'RE GOING NOW. EVERYBODY WANTS TO RETAIL COACH RETAIL STRATEGY. THEY'RE ALL STRUGGLING WITH THE SAME THING. I MEAN, WHEN I FIRST CAME HERE, I SAID TO YOU THAT A CITY THIS SIZE PROBABLY DIDN'T NEED TO ENGAGE RETAIL STRATEGIES, RETAIL COACH, BECAUSE WE HAVE RELATIONSHIPS WITH THE BROKERS THAT ARE TELLING US ENOUGH OF THAT INFORMATION. IF WE LOOK BACK TO 23 AND YOU LOOK AT THE OVERALL GROWTH OF OUR CITY AND YOU LOOK AT WHAT THE GAPS WERE, THEN THERE'S STILL THE SAME. HAVE WE ADDED ANY SPORTING GOODS COMPANIES? NO. IF I DID AND I COULD KNOW THE DATA OF WHAT'S

[01:05:06]

WELL, LET'S LOOK AT OURS AND CREATE OURS. I KNOW WE'RE DOING THAT. DON'T GET ME WRONG, I UNDERSTAND. I WORK WITH THE SINS OF THE WORLD. I UNDERSTAND THEY'RE STRUGGLING FOR A REASON BECAUSE EVERYTHING IS CHANGING AROUND US. PERIOD. BUT I DO THINK WE CREATE THE PREDICTABILITY FOR OURSELVES. NOW. I DO THINK WE DO THAT. YEAH, YEAH, I THINK I THINK TO SOME EXTENT THAT'S VERY TRUE. BUT WE HAVE TO DO THAT. SO ALL RIGHT. BUT LET'S MOVE FORWARD PLEASE. HOPEFULLY THAT GIVES YOU SOME INSIGHT THOUGH I APPRECIATE THAT. YEAH. RIGHT. WELL SO LEE'S QUESTION WAS DID WE LEARN ANYTHING FROM THIS. AND I SAID YEAH, WE LEARNED THAT. WE DON'T KNOW. YEAH. WE KNOW THAT WE REALLY CAN'T DO VERY MUCH PREDICTION FROM THIS. BUT WE ALSO UNDERSTAND A LITTLE BIT BETTER KIND OF ORDER OF MAGNITUDE. WHAT MAKES UP, WHAT MAKES UP BIGGER SPACES, WHAT MAKES UP SMALLER SPACES. WE ALSO UNDERSTAND THE IMPORTANCE. AS MUCH AS EVERYBODY WANTS TO CRY ABOUT WHAT WALMART DOES OR WHAT ANY GENERAL GENERAL MERCHANDISE RETAILER IS DOING, YOU KNOW THAT IT'S PUTTING THE LITTLE PEOPLE OUT OF OUT OF BUSINESS. IT'S DRIVING A HUGE PIECE OF OUR BUSINESS, WITHOUT A DOUBT. OKAY. INNOVATION. OKAY. THANK YOU.

IT'S NICE TO HAVE DATA. OH, YES IT IS. IT'S WHAT YOU DO. OKAY. LET'S GO OVER HERE. VERY TRUE.

[B.4. Presentation regarding Creation of a Tech Innovation Fund & Potential Innovation Lab -Antoine Long, Economic Development Manager]

[01:10:06]

THAT IF WHAT WE WANT TO DEVELOP IS TECH COMPANIES, THEN WE THEN WE HAVE TO DEVELOP TECH COMPANIES. AND IF THERE ARE TECH COMPANIES WHO WHO ARE ALREADY FINDING THESE OPPORTUNITIES, IF WE WANT SOME OF THOSE TO DEVELOP HERE OR MORE IMPORTANTLY, TO MOVE HERE, AND THAT WOULD BE THE OTHER PIECE OF THIS IS THIS ISN'T STRICTLY FOR DEVELOPMENT FOR DESOTO COMPANIES, BUT THEY HAVE TO BE WILLING TO LOCATE TO DESOTO IN ORDER TO BE AVAILABLE TO HAVE THE OPPORTUNITY FOR A GRANT FROM FROM THIS FUND, YOU HAVE TO LOCATE HERE. YOU HAVE TO PROVIDE US BUSINESS PLANS. THE UNDERWRITING PORTION OF THIS LOOKS VERY DIFFERENT THAN, SAY, A FACADE. GRANT. AND DO WE HAVE THAT ON HERE? WHAT ARE THE WHAT ARE THE STIPULATIONS. OH YOU GOT THE CRITERIA AT LEAST SUGGESTIONS OF. YEAH OKAY. NOT WHERE IT'S ANY OF IT JUST YET. BUT YOU KNOW, OPEN OPEN TO YOUR FEEDBACK. YES, MA'AM. MY LIST IS FOR EDUCATIONAL PURPOSES FOR MYSELF. ONE WHAT ARE THE TYPES OF FUNDS DO WE ONLY HAVE THAT ONE OTHER FUNDS THAT CURRENTLY EXISTS ON THE BDC. SO WE HAVE NOTHING THAT LOOKS LIKE THIS KIND OF A FUND. WE DO. WE DO FACADE GRANT IMPROVEMENTS. AND WE AND WE HAVE PUT TOGETHER, BUT WITHOUT ANY ANY OPPORTUNITIES TO UTILIZE IT. YET A PROPERTY IMPROVEMENT OPPORTUNITY AS WELL, WHERE LANDLORDS AND THE CITY AND THE DDC COME TOGETHER TO TAKE AN EXISTING PIECE OF PROPERTY AND IMPROVE IT BASED ON THEIR INVESTMENT, THEN WE'RE REBATING A CERTAIN PORTION OF THAT, AND THAT WOULD BE, WHILE IT'S NOT SET UP AS A FUND WITH SPECIFIC LIMITED ACTIVITIES TO IT, IT DOES HAVE A VERY SPECIFIC POLICY THAT REVOLVES AROUND IT. I'M THINKING OF LIKE THE DIFFERENT FUNDING PROGRAMS THAT WE HAVE AVAILABLE AS A BDC. SO THIS WOULD BE A NEW ONE, A NEW ONE. IT WOULD. YES. AND THEN THERE'S TWO OTHERS THAT ALREADY EXIST EITHER. AND THEN I'M JUST CURIOUS AS TO OTHER TYPES OF PROGRAMS. I MEAN LIKE HOW ARE THEY CREATED BASED ON LIKE THIS IS INNOVATION. IS THERE THE POSSIBILITY OF SOMEONE COMING OUT YEARS LATER AND SAYING, WE NEED A HEALTH FUND OR WE NEED A GOOD EDUCATION? I'M JUST CURIOUS, IS IT KIND OF UNLIMITED IN THE WAYS IN WHICH THESE TYPES OF PROGRAMS VERY INTENTIONALLY RESTRICTED FUNDS COME ABOUT, OR DO OTHER EXAMPLES, AS IN OTHER CITIES, THAT'S LIKE POTENTIALLY COULD BE BRINGING YES FOR CONSIDERATION IN THE FUTURE. YES. AND I THINK A LOT OF THESE COMMUNITIES THAT WE IDENTIFIED, THEY MIGHT HAVE STARTED KIND OF WITH THIS INNOVATION FUND OR TECH FUND AND IT'S MIGRATED TO SOMETHING ELSE OR EVOLVED TO SOMETHING ELSE, OR THEY ADDED A WHOLE NOTHER FUND TO SUPPORT WHAT THEY'RE DOING HERE. I THINK ONE OF THE THINGS, YOU KNOW, LOOKING AT TWO, AS FAR AS THE MARKET OPPORTUNITY, IT SAYS 20 TECH COMPANIES INCREASED IN THE LAST NINE MONTHS. THAT'S VERY REAL. IT'S PROBABLY MORE SO LIKE SIX BECAUSE AGAIN, WE HAVE BEEN OUT, YOU KNOW, TALKING WITH FOLKS, ENGAGING WITH FOLKS. AND AS YOU REALIZE, YOU KNOW, AVIATION IN THE SOUTHERN SECTOR REALLY DOESN'T EXIST OUTSIDE OF DALLAS EXECUTIVE AIRPORT. SO BEING ABLE TO HAVE ACTUAL INNOVATION FUND THAT PEOPLE CAN GRAVITATE TOWARD AND HAVE THAT CONCENTRATION, THERE'S A LOT OF EXCITEMENT AROUND THAT. TO MATT'S POINT, IT ISN'T JUST AIR MOBILITY. YOU KNOW, WE'VE TALKED TO ESPORTS, YOU KNOW, HAVE CONVERSATIONS ABOUT AUTONOMOUS VEHICLES AS WELL. MOSEY OUT THERE IN ARLINGTON. SO IT'S A NUMBER OF ENTITIES. BUT AGAIN, TO BE ABLE TO SAY TECH INNOVATION RIGHT HERE IN DESOTO, IT ALLOWS US TO BE A LITTLE BIT MORE STREAMLINED. I FEEL GOOD THE THIS IS THE GRADUATION OF OUR ESPORTS, POTENTIALLY KIND OF RIGHT AS WE ARE EVOLVING AND WHAT WE DID WITH ESPORTS, IT WAS A GREAT IT WAS A GREAT PLACE TO START IT OFF IN OUR SCHOOL SYSTEM. AND HERE'S ANOTHER, POTENTIALLY ANOTHER LEVEL. I'M SEEING THAT AVIATION IN MY HEAD SAYS SOMETHING LIKE AIR TRAFFIC CONTROLLERS, AND THE DEMAND THAT THEY'RE NEEDING RIGHT NOW THAT IN IN FIVE YEARS, THEY'RE GOING TO BE 10 OR 20,000. SHORT. SO WE

[01:15:06]

CORRECT. AND SO A REVOLVING LOAN FUND IS IN FACT AN INVESTMENT THAT YOU EXPECT TO GET PAID BACK IN RETURN. THAT'S ONE OF THE THINGS THAT'S UP IN THE AIR ABOUT THIS. DO WE WANT TO TAKE A POSITION IN THAT? BUT NOW WE'RE OFFERING WHAT IT LOOKS LIKE TO LOOT OF EQUITY, AND DO WE REALLY WANT TO DO THAT? THAT'S NOT A BAD IDEA. YOU ASKED EARLIER HOW DO WE GENERATE REVENUES. YES.

WELL, IF YOU HAVE AN EQUITY POSITION AND NOW THIS COMPANY GROWS AND YOU OWN YOUR 3% OR WHATEVER, THEN YOU YOU CAN GENERATE SOME SIGNIFICANT REVENUES, THROWS IT BACK. WELL.

SO LET ME ASK YOU THIS. SO YOU TALKED ABOUT LOCATION. SO ARE WE TALKING ABOUT LIKE HAVING THIS SPACE WHERE YOU CAN CREATE THIS INNOVATION AND PEOPLE OR YOU KNOW, JUST I DON'T WANT TO SAY CO-WORKING SPACE, BUT YOU GET YOU GET WHERE I'M GOING. RIGHT. IS THERE A SPACE THAT'S AVAILABLE FOR THIS TO HAPPEN? WE HAVE A FEW IN MIND. I DON'T THINK WE'RE AT THE POINT TO, BUT

[01:20:03]

YES, BUT I CAN FORGIVE THE $50,000, LET'S SAY THE LET'S SAY THE 3% GETS UP TO A BIG NUMBER.

LET'S SAY THEY DO INDEED GET AN OPPORTUNITY TO GET A UNICORN, A GSA CONTRACT, AND IT'S 50 TO 75, $100 MILLION OVER A FIVE YEAR PERIOD. HE'S SAYING THAT YOU COULD SAY, OKAY, WE'RE GOING TO WIPE THE SLATE CLEAN ON THE 50,000, BECAUSE NOW THE 3% IS OUTWEIGHING THAT. WE GOT YOU STARTED. AND NOW WE'RE ANNUALLY GENERATING 50,000 TO $100,000 ON OUR 3%. YEAH, I GUESS I DON'T SEE IT AS LIKE, I'M GOING TO FORGET THE 50,000. MY 50,000 IS IN. IT'S IN. YOU DON'T YOU DON'T HAVE TO. YEAH. LOOK, IF YOU MAKE TEN INVESTMENTS, I JUST NEED ONE TO HIT. BUT WE WOULDN'T BE ALONE IN DOING THAT IS WHAT I'M TELLING YOU. YEAH. THERE ARE PEOPLE WHO DO WHO MAKE THOSE KINDS OF INVESTMENTS. YES. AND THE IDEA IS IF YOU HAVE THESE TO YOUR POINT, YOUR, YOUR 3% STAKE IS, IS SUBSTANTIALLY LARGER THAN THE 50,000. YES. AND SO THAT THAT'S JUST HOW THEY'VE CHOSEN TO RUN THEIRS. YEAH. IT DOESN'T MEAN WE HAVE TO. THERE'S THREE NOT JUST THE NUMBER COULD BE FIVE. YEAH. YEAH. SO QUESTIONNAIRES. YEAH. DON'T DON'T GET HUNG UP ON THE DETAILS I JUST DON'T LIKE THAT. SO IT'S FORGIVING PRACTICES. WE AIN'T DOING IT. REGIONAL EXAMPLES. SO DO WE HAVE ANY CORRELATION FROM A TIME STANDPOINT OF WHAT I MEAN WHAT THE BENEFITS HAVE BEEN FOR MCKINNEY AND FRISCO WAS IN THE WORLD. WE HAVE ANYTHING THAT SPEAKS TO. YEAH. DOES MCKINNEY REAL QUICK. THERE'S WE'RE SO GOOD. I THINK THEY'VE BEEN ACTIVE ABOUT 4 OR 5 YEARS.

THEY'VE RECENTLY BUMPED THEIR INVESTMENT AMOUNT FROM, I THINK, 50,000 TO $200,000 PER COMPANY THAT THEY'RE WORKING WITH BECAUSE THEY'VE GOT THEY'VE GOT THE RETURN, THEY'VE GOT QUALITY COMPANIES THAT'S COMING TO THEM. SO THEY CAN KIND OF TURN FOLKS AWAY KNOWING IT'S KIND OF THAT CRITERIA TO MEET, BUT KNOWING THAT THEY'VE BUMPED THEIR INVESTMENT UP FOR COMING FROM FOUR X, THAT'S PRETTY SUBSTANTIAL. AND AGAIN, WE'VE WE'VE MET WITH THEM OVER THE SUMMER TO KIND OF STRUCTURE AND UNDERSTAND HOW THEY SET THEIRS UP AND AGAIN EVOLVE THEIRS FROM THEIR INITIAL ORIGIN A FEW YEARS AGO. SO HAS THAT BEEN THE MOST SUCCESSFUL MODEL? IT DEPENDS WHAT METRICS YOU'RE LOOKING AT, TRULY. I MEAN, YOU KNOW, MCKINNEY HAS TALKED ABOUT A LOT HERE LOCALLY IN THE METROPLEX AND MY EDC CIRCLES, FRISCO AS WELL. IF YOU'RE DOWN IN AUSTIN, FOLKS ARE TALKING ABOUT BEXAR COUNTY. IT JUST TRULY, JUST TRULY DEPENDS ON WHAT METRICS AND WHAT YOU GUYS ARE FOCUSING ON. AND I DON'T KNOW ALL THE METRICS, BUT JUST BASED ON THE PROGRAM AND THE BEST PRACTICES THAT HAVE BEEN IDENTIFIED, WHICH PROGRAM HAS REALLY SOARED, IF YOU WILL? YEAH. LOOK INTO THE MCKINNEY INNOVATION FUND. THAT'S TRULY ONE THAT GETS CALLED OUT.

RICHARDSON IQ IS ANOTHER ONE. I MEAN, THIS IS NOT AN EXHAUSTIVE LIST OF SUCCESSFUL PROGRAMS. JUST BECAUSE WE HAD IT AS WELL. YEAH, BUT WHAT'S INTERESTING ABOUT WHAT'S INTERESTING ABOUT WHERE WE SIT IN TERMS OF GEOGRAPHICALLY AT OUR LOCATION, BILL JUST GOT A BIG CONTRACT.

YEAH. YES THEY DID. I'M TALKING ABOUT A HUGE ONE. AS A MATTER OF FACT, IT'S THE LARGEST ONE THEY'VE GIVEN THE GOVERNMENT'S GIVEN OUT. AND FOR US TO BE SITTING HERE AND THEN HAVE ALL OF THE MINORITY STATUS THAT GOES ALONG WITH IT, WE COULD REALLY BE CREATING A REAL OPPORTUNITY.

YEAH, ABSOLUTELY. WE ARE GEOGRAPHICALLY NOT LIKE THESE PARTICULAR ONES THAT YOU'VE LOOKED AT IS DO THEY HAVE A HOLD PERIOD ON THEIR INVESTMENTS, OR IS THERE A RANGE? I DON'T KNOW THAT I KNOW THE ANSWER TO THAT. OKAY. I DON'T KNOW THE ANSWER TO THAT QUESTION. SO TONIGHT, WHAT IS THE ACTION YOU WANT THIS BOARD TO TAKE? WE WANT TO KNOW IF THERE'S AN APPETITE TO LOOK INTO THIS AND START TO BUILD. THIS IS ESSENTIALLY NOTHING MORE THAN THE POTENTIAL FOR A SKELETON. WE'LL BUILD OUT THE SKELETON AND START TO AND FERRET OUT SORT OF SOME OF THESE, SOME

[01:25:05]

ABSOLUTELY. LET'S DO THAT. YEAH. NO QUESTION ABOUT IT. THE QUESTION AT HAND IS, IS THERE AN APPETITE TO MOVE FORWARD AND START TO CREATE THAT NARRATIVE SO THAT WE CAN CROSS THE T'S AND DOT I'S? SO DO WE NEED TO VOTE ON THAT? NO, NO, WE'RE JUST TRYING TO TEST THE WATERS TO SEE IF THERE'S A GENERAL CONSENSUS AMONGST YOU. IF THERE'S SOMEBODY WHO SAYS, THAT'S THE STUPIDEST IDEA EVER, WE'D LIKE, WE'D LIKE TO KNOW ABOUT IT. I WOULD ADD ONE THING TO THIS. AND MAYBE DOCTOR PRICE CAN KIND OF SPEAK TO THIS. SO WE'RE ALSO TALKING ABOUT HAVING THIS HEALTH THING.

AND SO WHEN WE TALK ABOUT TECHNOLOGY AND HEALTH, LIKE THAT'S WHAT I TAKE FOLKS ON IS CAN WE BUILD ON THAT. BECAUSE BECAUSE I DON'T I DON'T WANT TO FORGET THAT WE'RE GOING AFTER THAT AS WELL. NO. ABSOLUTELY. SO SOME OF THE FOLKS ON THIS LIST HERE. ABSOLUTELY. YEAH. AND THAT'S THE REASON I SAY IT'S NOT JUST AROUND AEROSPACE. DOCTOR PRICE I MEAN YOU'RE ON MUTE I THINK. YOU'RE STILL ON MUTE. HELLO. YES, THERE YOU ARE. THERE WE GO. SO WHAT I SEE THIS AS IS THIS IS ALL A SYNERGISTIC EFFORT, RIGHT? WE HAVEN'T TALKED EXPLICITLY ABOUT THE BIOTECH CAMPUS, BUT ALSO THIS IS ONE OF THOSE THINGS WHERE THIS ALLOWS YOU TO MOVE FORWARD AS A CITY PER SE, AND ALSO INVEST IN NEW AND NOVEL THINGS THAT MAY BE COMING YOUR WAY. I KNOW WE'RE

[01:30:05]

AND WHEN YOU SAY TECH, YOU HAVE TO UNDERSTAND, YOU KNOW, I'VE TALKED ABOUT MY BROTHER BEFORE.

HE WAS ONE OF THE FIRST EMPLOYEES AT AIRBNB. BE VERY CLEAR THAT AIRBNB CONSIDERS THEMSELVES A TECH COMPANY. RIGHT. SO THIS IS APPLICABLE ACROSS MULTIPLE DOMAINS AND HAS THE POTENTIAL, AGAIN, TO BEAR FRUITS IN WAYS THAT WE CAN'T QUITE QUANTIFY AT THE MOMENT. SO I THINK IT'S WORTH EXPLORING AND KIND OF TEASING OUT HOW IT WOULD LOOK. AND SURE, WE HAVE TO DECIDE ARE WE, YOU KNOW, ARE WE INVESTORS OR ARE WE PRINCIPLES? IS THIS OPERATING LIKE A VENTURE FUND? THERE'S DIFFERENT THINGS TO TEASE OUT, BUT I THINK IT'S IMPORTANT FOR OUR FUTURE THAT WE AT LEAST INVESTIGATE THIS. RIGHT. BECAUSE I CAN SEE THIS BEING A DEVELOPER OF TALENT, BUT ALSO HELPING US GROW AND INCUBATE TRULY HOMEGROWN COMPANIES. MAYBE THE KIDS AT THE HIGH SCHOOL COME UP WITH A GREAT IDEA, AND WE CAN FUND IT, RIGHT, AND AT LEAST GET THEM OFF OF THE GROUND. BUT THAT'S ONE OF THE I WILL SAY, THIS FUNDING IS ONE OF THE BIGGEST BARRIERS FOR CREATORS OF COLOR, BLACK, BROWN FOLKS. BUT ALSO, YOU KNOW, WE DON'T NECESSARILY WANT GOOD IDEAS TO GO TO WASTE, ESPECIALLY IF THOSE GOOD IDEAS ARE CULTIVATED IN OUR BACKYARD. OH, BY THE WAY, IT'S A GREAT SIGNAL TO THOSE COMPANIES THAT WE HOPE TO ATTRACT THAT WE HAVE SOMETHING LIKE THIS. RIGHT. AND WE JUST HAVE TO LOOK AT IT AS IT'S THE FIRST OF ITS KIND, AND MAYBE WE'LL EXTRAPOLATE IT TO OTHER DOMAINS AS WE MOVE FORWARD. BUT I REALLY LIKE THIS IDEA. I'M ACTUALLY WHEN I SAW THAT ON THE AGENDA, I GOT QUITE EXCITED ABOUT IT. SO YEAH, OBVIOUSLY IT HAS TO BE HANDLED WITH CARE, BUT I THINK IT'S A GOOD STEP IN THE RIGHT DIRECTION. THANK YOU. AND THE JOINT VENTURE PIECE HAS TO THE GOVERNMENT GIVES AWAY BILLIONS AND BILLIONS OF DOLLARS OF CONTRACTS EVERY YEAR, AND THEY LEAVE THEM DORMANT WHEN THERE ARE NO. AND THEY SAY WE DON'T HAVE A MINORITY BASED COMPANY TO PARTNER WITH. YEAH, RIGHT. AND THEY WOULD. EXACTLY. AND THEY WOULD RATHER PARTNER WITH A MINORITY TO GET THEIR BIGGER PIECE OF THE PIE THAN TO GET THE JUST PIECE THAT THEY DID. THEY'D RATHER GIVE UP 20%, 25% OF 100% OF A PIE JUST SO THAT THEIR NUMBER WOULD GROW UP. AND THE LEVERAGE THAT EVEN PARTICIPATE IN THE NEXT ROUND. SO THEY GOT A PARTNER. IF THEY GOT A JV, THEY CAN CREATE A JV. THEY GOT A MINORITY PARTNER, A REAL MINORITY PARTNER. THEY GET TO PARTICIPATE IN IN THE OTHER, OTHER ROUNDS TOO. SO THAT'S THAT'S WHY WE'LL BE ATTRACTIVE. OKAY. SO THE GENERAL CONSENSUS THAT I'M HEARING AND I'M DEFINITELY ON BOARD MYSELF, IS THAT THERE'S AN APPETITE TO ENCOURAGE GETTING MORE INFORMATION. AND TO CONSERVATIVES, OKAY. SO I WOULD SAY THAT'S NEXT STEPS PHASE ONE. YEAH. THANK YOU ALL VERY MUCH. WE'LL MOVE TO THE NEXT STEP WITH PHASE TWO. GREAT. THANK YOU. THANK YOU VERY MUCH. SO THANK YOU. A LOT OF INFORMATION. OKAY.

[B.5. Presentation regarding Hampton Road Redevelopment Corridor Map Revisions and Proposed Dates of Rezoning Hearings - Matt Carlson, Chief Executive Officer]

YEAH. AND REALLY, THIS IS THIS GETS YOU SORT OF CAUGHT UP, YOU KNOW, IT'S LITERALLY BEEN A YEAR SINCE IN FEBRUARY, SINCE THE CITY COUNCIL ADOPTED THE FORM BASED CODE, THE CHARACTER BASED CODE THAT OVER THAT THAT WAS CREATED FOR THE ORIGINAL REZONING AREA HERE THAT YOU SEE BEHIND TAB FIVE, IF YOU WILL, THE FIRST THE FIRST PAGE IN THERE ON PAGE 31 IS THE ENTIRETY OF THE HAMPTON ROAD AREA. AND THE VARIOUS COMPONENTS THAT MADE THAT UP. THE CODE WAS ADOPTED.

SO THE FORM BASED CODE AND ALL THE PIECES OF WHAT IT TELLS US WE'RE GOING TO CREATE WITHIN THAT ARE THERE THE PLACE WHERE WHERE WE HIT A BUMP, IF YOU WILL, OR TAP THE BRAKES. AND I'M GOING TO SAY, REALLY TAP THE BRAKES, BECAUSE I THINK IT WAS THE WISE THING TO DO WAS TO LISTEN TO OUR COMMUNITY, BECAUSE THERE WAS A LOT OF DISSENSION AROUND, AROUND THE TOPIC OF WHAT ARE YOU DOING WITH MY PROPERTY? AND THE VAST MAJORITY OF THAT DISSENSION AND CONCERN WAS COMING FROM PEOPLE WHO OWNED WHO OWNED RESIDENCES THAT ARE OUTSIDE OF THE CORE CHARACTER AREA, WHICH IS THE HAMPTON ROAD CORRIDOR AND THE COMMERCIAL PROPERTIES THAT THAT WERE THE, THE, THE, THE NEXUS FOR MAKING THIS, THIS HAPPEN. SO ONE OF THE THINGS THAT GOT SUGGESTED WAS THAT WE THAT WE BACK UP, MOVE AWAY FROM THE RESIDENTIAL COMPONENTS OF THAT AND STRICTLY

[01:35:04]

AND THEN THERE ARE A FEW OTHER EXCEPTIONS THAT LAY OUTSIDE OF THAT, BECAUSE THEY WERE ENGAGED IN PROJECTS THAT WERE BEING WORKED ACTIVELY, THAT WE NEEDED TO CONSIDER. SO ESSENTIALLY WHAT WE DID WAS TO WAS TO SHRINK OR WITHDRAW, IF YOU WILL, THE RESIDENTIAL COMPONENTS TO COME UP WITH A MUCH REDUCED MAP. AND THERE'S EVEN BEEN SOME REVISIONS TO THIS. I'M LOOKING AT SOME OF THEM NOW BECAUSE I KNOW THE PROJECTS THAT ARE UNDERWAY, THAT EVEN THIS MAP IS WRONG, BUT THE COUNCIL IS RECONSIDERING. WHAT COUNCIL DIRECTED LAST YEAR WAS TO SEND THIS BACK TO PLANNING AND ZONING FOR RECONSIDERATION. PART OF THAT RECONSIDERATION THAT'S COMING BEFORE THE PLANNING AND ZONING COMMISSION FOR THE FIRST TIME TOMORROW NIGHT, AND THEN TWO WEEKS LATER, FOR THE SECOND TIME, FOR THEM TO CONSIDER IT AND SEND IT BACK TO COUNCIL WITH A RECOMMENDATION ON FEBRUARY 18TH, IT WILL COME BEFORE COUNCIL FOR A CONSIDERATION OF REZONING THE COMMERCIAL PROPERTIES THAT ARE ALONG THE HAMPTON ROAD CORRIDOR AS AS WAS ORIGINALLY DEPICTED IN THIS. IT'S REALLY JUST AN UPDATE FOR YOU ALL. I KNOW WE'VE TALKED ABOUT HAMPTON, THE HAMPTON ROAD CORRIDOR IN SO MANY DIFFERENT PLACES WITH SO MANY DIFFERENT PEOPLE. THIS IS THIS IS ONE THAT I THINK THE APPROACH WAS RIGHT IN TERMS OF RETHINKING IT AND GIVING IT THE TIME THAT WAS NECESSARY TO REALLY GO THROUGH THE PROCESS. WE'VE HAD MULTIPLE, LITERALLY DOZENS NOW OF COMMUNITY OUTREACH MEETINGS. THE PARTICIPATION OF THOSE ORIGINALLY WAS FAIRLY HIGH.

WE'VE HAD SOME OVER THE LAST TWO WEEKS THAT HAVE HAD JUST ONE OR 2 OR 3 PEOPLE NOW THAT ARE SORT OF COMING, AND I THINK WE'VE WE HAVE, WE HAVE CERTAINLY I DON'T I THINK IT WOULD BE PURE FOLLY TO BELIEVE THAT WE'RE GOING TO MAKE 100% OF PEOPLE HAPPY. THERE'S ALWAYS GOING TO BE SOME PEOPLE WHO SAY, I'M NOT REALLY INTO THAT, AND I UNDERSTAND THAT AND I RESPECT THAT, BUT IT DOESN'T MEAN THAT WE CAN'T CONTINUE FORWARD AND SHOULD CONTINUE FORWARD. BUT AT LEAST WE CAN'T HAVE ANYBODY SAY, GOSH, NOBODY TOLD ME. I WASN'T INFORMED, I DIDN'T HAVE THE OPPORTUNITY TO GET THE INFORMATION. THAT'S REALLY TONIGHT. THERE'S NO ACTION NECESSARY FROM YOU. I JUST WANTED YOU TO HEAR SORT OF WHERE WE WERE AT AND WHAT THE NEXT STEPS WERE. THE DATES THAT ARE THAT ARE THERE. CAN YOU REPEAT THOSE DATES ONE MORE TIME? NO, HE WANTS TO SAY IT, I FORGET IT. I'M JUST KIDDING. TOMORROW NIGHT, THE PNC HEARS IT FOR THE FIRST TIME. TWO WEEKS LATER, IT HEARS IT FOR THE SECOND TIME. THE FEBRUARY 18TH IS THE CITY COUNCIL MEETING WHERE THIS WILL BE COMING TO COUNCIL FOR CONSIDERATION. A PRESENTATION WILL BE DONE BY LIKELY BY MR. BREWER AND HIS CREW. I MAY BE PART OF THAT. THE PLANNING AND ZONING COMMISSION ACT, THEIR COMMISSIONER, THEIR CHAIR, ACTUALLY ASKED THAT I BE PRESENT TOMORROW NIGHT TO ANSWER ANY QUESTIONS FROM A DEVELOPMENT STANDPOINT WHICH WHICH I FIND VERY ENCOURAGING. IT'S NOT KIND OF THE WAY WE'VE OPERATED IN THE PAST. I'M REALLY EXCITED THAT WE'RE STARTING TO GET SOME OF THIS OVERLAP BETWEEN OUR BOARDS AND COMMISSIONS AND OUR COUNCIL, SO THAT WE'RE ALL WORKING FROM THE SAME SET OF INFORMATION, AND THERE'S NOT GAPS IN THAT INFORMATION. SO I'M VERY EXCITED ABOUT THAT OPPORTUNITY. I'D SAY THE NEXT TIME, IF YOU WANT TO HAVE A, YOU KNOW, AN INPUT INTO THIS, IT WOULD BE TO BE AT THE BOARD MEETING. THE COUNCIL MEETING ON THE 18TH WOULD BE A GREAT PLACE FOR SOME OF OUR COMMISSION FROM SOME OF OUR BOARD MEMBERS TO BE ABLE TO SAY THAT, YOU KNOW, WE'RE WE'VE BEEN BEHIND THIS, WE'VE CONTINUED TO BE BEHIND IT. WE'VE PUSHED ON THIS FOR A YEAR. THIS IS A GREAT OPPORTUNITY TO MOVE THIS FORWARD AND TO REALLY BEGIN TO ENGAGE WITH OUR DEVELOPMENT COMMUNITY. BECAUSE AS MUCH AS ANTOINE AND I WENT BACK AND WE DID SOME, WE'RE WORKING THROUGH SOME METRICS, I THINK THAT WE'VE VISITED WITH 39 DIFFERENT DEVELOPERS AROUND THE HAMPTON ROAD CORRIDOR LAST YEAR, 39 OF THEM. AND THE QUESTIONS ARE THE SAME. OKAY, WHAT'S THE ZONING WILL THE ZONING IS NOT DONE. WELL, WHAT'S IT GOING TO BE? WELL, HERE'S HERE'S WHAT HERE'S WHAT THE FORM BASED CODE SAYS. BUT IT'S NOT BEEN APPLIED TO THE INDIVIDUAL PIECES OF PROPERTY. AND IT'S NOT BECAUSE ANY ONE PROPERTY THEY COULDN'T REZONE IT. THEY COULD. THE CODE EXISTS. THEY COULD ADOPT THE CODE FOR THAT PIECE OF PROPERTY.

BUT WHEN YOU HAVE NO CONFIDENCE ABOUT WHAT YOUR NEIGHBORS ARE GOING TO DO, YOU'RE NOT GOING TO BUILD THE TAJ MAHAL NEXT TO WHAT'S GOING TO END UP BEING AN AUTO PARTS JUNKYARD, RIGHT? IT'S NOT GOING TO HAPPEN. AND, YOU KNOW, THESE ARE SIZABLE INVESTMENTS WE'RE TALKING ABOUT FOR THE DEVELOPERS WE'RE TALKING TO. THERE WILL BE A LOT OF SMALLER DEVELOPMENTS ALONG THIS

[01:40:01]

THERE'S NO REQUIREMENTS FOR THEM TO CHANGE AT ALL. SO THAT THE COMPONENT OF, YOU KNOW, SITTING AT THE COUNCIL MEETING AND THE APPROVAL OF THE COMMUNITY AT THE CHURCH. YEAH. HOW DOES THAT IMPACT THIS? SO WHAT'S THE BENEFACTOR? WELL, YOU KNOW, I'M GOING TO LET ME LET ME HOLD THAT COMMENT BECAUSE I'M GOING TO TALK A LITTLE BIT ABOUT COMMUNITY MISSIONARY BAPTIST CHURCH IN A MINUTE. OKAY. BUT BUT REST ASSURED, IT'S ONE OF THOSE MAJOR COMPONENTS THAT THERE AREN'T THERE AREN'T ALL THAT MANY LARGE COMPONENTS ALONG THE CORRIDOR. I CAN I CAN CERTAINLY POINT THOSE OUT THAT THERE WILL PROBABLY BE LESS THAN HALF A DOZEN LARGER PROJECTS.

AND TO THE EXTENT THAT THOSE ARE LARGE PROJECTS, IT MATTERS THAT WE GET THIS THING AND THAT WE GET IT RIGHT AND WE GET THOSE IN PLACE BECAUSE NOBODY'S GOING TO MOVE FORWARD WITH A $300 MILLION PROJECT OR A $250 MILLION PROJECT WHEN THERE'S UNCERTAINTY AROUND IT. AND THE ZONING IS THE UNCERTAINTY. I MEAN, THE ZONING IS THE UNCERTAINTY. SO HOW DOES IT IMPACT IT? IT IMPACTS IT A LOT, OF COURSE IT OKAY. THAT'S PROGRESS. OKAY. OH COME ON. OKAY. SO WE ALREADY AUTHORIZED

[B.6. Presentation regarding Authorized Use of DDC Project Funds - Victoria Thomas, Board General Counsel - Nichols Jackson]

AND WHY DO WE WANT TO IDENTIFY ELIGIBLE PROJECTS? BECAUSE UNDER THE DEVELOPMENT CODE, THE FLIP OVER FROM EACH ONE. NEXT SLIDE PLEASE. GOTCHA, GOTCHA. UNDER THE DEVELOPMENT CODE, IN ORDER FOR US TO SPEND MONEY, IT HAS TO BE ON A PROJECT. SO THEN NEXT SLIDE PLEASE. THE DEVELOPMENT CODE LISTS EVERYTHING THAT CAN QUALIFY AS A PROJECT. AND THERE'S A LOT IN THERE WHERE, YOU KNOW, CERTAIN CITY POPULATIONS HAVE DIFFERENT PROJECTS. LANDLOCKED CITIES HAVE DIFFERENT PROJECTS. CITIES THAT ARE BUYING COASTLINES HAVE DIFFERENT ELIGIBLE PROJECTS. SO WHAT YOU'RE GOING TO HEAR TONIGHT, YOU KNOW, YOU MAY TALK TO SOMEBODY ELSE AND SAY, OH, BUT WE GET TO DO THIS. THESE ARE FOR DESOTO. THESE ARE DESOTO ELIGIBLE PROJECTS. AND ALMOST ALL OF THOSE ELIGIBLE PROJECTS WILL REQUIRE THE CREATION OR THE RETENTION OF PRIMARY JOBS. SO WHAT'S A PRIMARY JOB? IT IS A JOB THAT'S AVAILABLE AT A COMPANY THAT DEALS IN REGIONAL OR STATEWIDE, NATIONAL OR INTERNATIONAL MARKETS. IT HAS TO EXPORT AT LEAST REGIONALLY. SO IT CAN'T JUST BE A LOCAL CITY BUSINESS, AND THEIR BUSINESS FALLS WITHIN A LIST OF BUSINESSES THAT ARE LISTED IN THE DEVELOPMENT ECONOMIC DEVELOPMENT CODE. WHAT'S THAT LIST? THEY THEY'RE GENERALLY THE BUSINESSES THAT WE'RE ABOUT TO TALK ABOUT RIGHT NOW. ON THE NEXT SLIDE. CHRISTMAS. YOU WANT TO DO IT. SO WHEN WE MEET THAT PRIMARY JOB REQUIREMENT, IT ALLOWS THE DDC TO FUND LAND, BUILDINGS, EQUIPMENT, FACILITIES, EXPENDITURES,

[01:45:04]

SO ON THE NEXT SLIDE, WE START TALKING ABOUT WHAT THOSE PROJECTS CAN BE. THESE ARE THE PROJECTS THAT YOU CAN INVEST FOR GRANT DDC FUNDS TO THAT HAVE TO CREATE OR RETAIN PRIMARY JOBS, MANUFACTURING AND INDUSTRIAL FACILITIES. AND WE HAVE PLENTY OF THOSE THAT WE THAT WE'RE FAMILIAR WITH. THE PROJECT ROCKER. WHAT'S THE REAL NAME OF IT? LIMESTONE ALLY. THERE YOU GO. ALLIED STONE BEING ONE RESEARCH AND DEVELOPMENT FACILITIES. AND THAT'S WHERE WE WOULD MOST LIKELY PUT WHAT WE WERE TALKING ABOUT JUST A MINUTE AGO WITH THE TECHNOLOGIES, MILITARY FACILITIES, ALTHOUGH WE DON'T REALLY SEE MUCH OF THAT HERE. BUT THOSE WOULD ALSO BE AN ELIGIBLE PROJECT. TRANSPORTATION FACILITIES, ALL WOULD BE ELIGIBLE PROJECTS, SEWAGE OR SOLID WASTE DISPOSAL FACILITIES, RECYCLING FACILITIES, AIR OR WATER POLLUTION CONTROL FACILITIES. AGAIN, ALL OF THESE ARE ELIGIBLE FOR YOU SPENDING YOUR MONEY AS LONG AS YOU'RE CREATING OR RETAINING PRIMARY JOBS. THE NEXT SLIDE LISTS A FEW OTHERS FACILITIES FOR FURNISHING WATER TO THE PUBLIC DISTRIBUTION CENTERS, AND WE SEE A LOT OF THAT WITH AEDC'S SMALL WAREHOUSE FACILITIES, PRIMARY JOB TRAINING FACILITIES USED BY AN INSTITUTE OF HIGHER LEARNING AND THEN REGIONAL OR NATIONAL CORPORATE HEADQUARTER FACILITIES. AND AGAIN, WE SEE THAT A FAIR AMOUNT TOO, WITH OUR ECONOMIC DEVELOPMENT CORPORATIONS. SO CAN YOU DO ANYTHING ELSE WITH YOUR MONEY? YES YOU CAN. THERE ARE QUITE A FEW PROJECTS THAT YOU CAN PUT YOUR MONEY INTO THAT YOU'RE NOT REQUIRED TO CREATE OR RETAIN PRIMARY JOBS FOR. AND ONE OF THOSE IS JOB TRAINING CLASSES. ANOTHER, AND THIS IS A BIG ONE, IS IF YOU WANTED TO SPEND THE MONEY ON CERTAIN INFRASTRUCTURE IMPROVEMENTS THAT PROMOTE OR DEVELOP NEW OR EXPANDED BUSINESS ENTERPRISES, WE'LL TALK ABOUT THAT ONE SOME MORE IN JUST A MINUTE. CAREER CENTERS, AFFORDABLE HOUSING AND THEN ROUNDING IT OUT. COMMUNITY FACILITIES LIKE SPORTS, ENTERTAINMENT, TOURISM, CONVENTION CENTERS AND PARKS. AND WE'LL TALK MORE ABOUT THAT ONE, TOO. ON THE NEXT SLIDE. SO WHAT COMMUNITY FACILITIES WOULD BE ELIGIBLE FOR YOU TO PROVIDE AN ECONOMIC DEVELOPMENT INCENTIVE GRANT TO OR ALONE OR ANY OTHER TIME, ANY OTHER TYPE OF FUNDING? IT CAN BE PROFESSIONAL OR AMATEUR SPORTS. IT CAN EVEN BE YOUTH SPORTS AND ATHLETIC FACILITIES. IT INCLUDES STADIUMS AND BALLPARKS, ANY SORT OF ENTERTAINMENT FACILITY LIKE AN AMPHITHEATER, THAT KIND OF THING. BUT ANY TOURIST AND CONVENTION FACILITIES, PUBLIC PARKS, OPEN SPACE IMPROVEMENTS AND PUBLIC MUSEUMS ALL. AND THAT ENCOMPASSES THE LAND, THE EQUIPMENT, THE FACILITIES AND THE IMPROVEMENTS. IT CAN ALSO INCLUDE RELATED STORES OR RESTAURANTS OR CONCESSIONS, AS WELL AS PARKING FACILITIES, TRANSPORTATION FACILITIES, ROADS THAT ARE NECESSARY FOR THAT BALL PARK OR WHATEVER THE PROJECT MAY BE, SEWER FACILITIES, ANY OTHER RELATED IMPROVEMENTS IN ORDER TO FUND THAT PROJECT, TO GET THAT PROJECT OFF THE GROUND. NOW FOR INFRASTRUCTURE, THIS IS THE OTHER BIG TICKET ITEM THAT WE SEE A LOT OF FOR PROJECTS THAT DON'T REQUIRE THAT THE BUSINESS ENTERPRISE CREATE NEW ELIGIBLE JOBS, PRIMARY JOBS, INFRASTRUCTURE IMPROVEMENTS THAT ARE ELIGIBLE FOR YOU TO SPEND MONEY ON CAN BE STREETS, ROADS, RAIL SPURS, WATER AND SEWER, ELECTRIC OR GAS UTILITIES, DRAINAGE, TELECOMMUNICATIONS AND INTERNET IMPROVEMENTS AND SITE IMPROVEMENTS. THEY HAVE TO PROMOTE AND DEVELOP NEW OR EXPANDED BUSINESS ENTERPRISE, AND THE BOARD HAS TO MAKE THAT FINDING. SO YOU'LL ALWAYS SEE THAT IN MY RESOLUTIONS THAT YOU'VE MADE THE FINDING THAT FUNDING OF THIS INFRASTRUCTURE PROMOTES OR EXPANDS NEW OR EXPANDED BUSINESS ENTERPRISES. AND A BIG ONE. THERE IS SITE IMPROVEMENTS. THAT'S ACTUALLY WHERE YOUR FACADE GRANTS COME FROM. IS A SITE IMPROVEMENT. AND THE FINAL THING THAT YOU CAN SPEND MONEY ON IS A PROMOTIONAL PROJECT. AND I THINK AS MATT TALKED ABOUT EARLIER, YOU CAN'T

[01:50:06]

AND THOUGH IT HAS TO ADVERTISE OR PUBLICIZE THE CITY FOR THE PURPOSE OF DEVELOPING NEW AND EXPANDED BUSINESS ENTERPRISES AND THAT'S THAT'S IT. THAT'S WHAT YOU CAN SPEND YOUR MONEY ON. THANK YOU, THANK YOU. NO MENTION OF FELONIES. THAT'S THE NEXT CLASS, MARK. THE NEXT QUESTION. THE NEXT SLIDE. WHEN I CAN BE A FELON, I GOT A PREDATOR IS ONE. WHAT? WHAT SHE DIDN'T PUT ON THAT SLIDE IS OR ANY OF THESE THINGS THAT MATT CALLS AND GOES, HEY VICTORIA, CAN IT BE THIS CAN NOW LOOK AT IT THROUGH YOUR LEFT EYE AND YOU CAN SEE THAT THIS IS CLEARLY SITE IMPROVEMENTS. WE HAVE TO REALLY LOOK AT SOME OF THEM AND PIGEONHOLE THEM AND GET IT JUST RIGHT, BECAUSE WE WANT TO BE ABLE TO SAY, YOU KNOW, WE ARE OPERATING LEGALLY. SOMETIMES IT TAKES A LITTLE FINAGLING BACK AND FORTH WITH A DEVELOPER OR AN APPLICANT. BUT BUT WE GOOD JOB.

AND WE DO A PRETTY GOOD JOB OF PAPERING THOSE. YES. SO THAT IT MEETS THE LETTER OF THE LAW. IT DOESN'T MEAN IT DOESN'T. WE DON'T BREAK THE LAW. THAT'S NOT WHAT WE DO. WE BEND IT SOMETIMES AND WE AND WE PUSH THE EDGE. AND I DON'T THINK I'M WRONG WHEN I SAY THIS, BUT VICTORIA WILL CORRECT ME IF I AM. SHE MADE A VERY INTERESTING POINT. AND IT'S KEY. YOU ALL ARE THE ARBITER OF WHAT IS A PROJECT, RIGHT? IT CAN BE CHALLENGED BY OTHER PEOPLE. BUT I MEAN, THE COMPTROLLER COULD COME BACK AND CHALLENGE HIM FOR THAT MATTER. BUT THE QUESTION IS ALWAYS GOING TO BE, DID THEY DID THEY DID YOU THE BOARD, NOT MATT, NOT ANTOINE, NOT VICTORIA. DID THE BOARD DETERMINE THAT THIS IS IN FACT AN ELIGIBLE PROJECT? AND IF YOU DID, THEN WE'VE MET THE LETTER OF THE LAW, AND THAT'S IN EVERY RESOLUTION. IT IS IT IS ABSOLUTELY IN EVERY RESOLUTION THAT YOU ALL DID THAT IT'S AND IT'S CRITICAL. SO EVEN THOUGH WE MAY LOOK AT IT AND GO, WOW, THAT'S THAT'S OUT THERE, ONE OF THE THINGS I ALWAYS ASK EITHER VICTORIA OR WHOEVER HAPPENS TO SIT THERE FIRM HAPPENS TO BE WORKING ON IT IS I WANT TO LOOK FOR PLACES WHERE WE HAVE SPECIFIC CASE LAW THAT SAID, WE CAN'T. OTHERWISE WE CAN START TO MAKE SOME INTERPRETATIONS AROUND THOSE THINGS AND WAIT FOR SOMEBODY ELSE TO CHALLENGE IT. AND, AND THAT'S I THINK I THINK THAT'S WHERE WE HAVE GREAT LEGAL REPRESENTATION. WHO SAYS, MAN, YOU'RE WAY OUT ON THE EDGE OF THE END OF THE LIMB. YOU MIGHT WANT TO COME BACK A COUPLE OF STEPS, BUT BUT IT DOES ALLOW US TO BE A LITTLE MORE, MAYBE AGGRESSIVE, BECAUSE I'M NOT AFRAID TO LOOK AND FIND PLACES THAT THAT WE CAN DO THAT IT ALSO IT ALSO ALLOWS US TO BE A LITTLE MORE ROBUST IN OUR THINKING AROUND THINGS LIKE YOU SAW A LOT OF STUFF ABOUT WATER UTILITIES, ELECTRIC UTILITIES, GAS UTILITIES, A LOT OF STUFF ABOUT PUBLIC INFRASTRUCTURE. WELL, A LOT OF TIMES THAT'S INFRASTRUCTURE THAT'S GETTING DONE BY OTHER DEPARTMENTS IN OUR CITY, WHERE THE DEVELOPMENT CORPORATION COULD BE DOING THOSE. SO MAYBE WE TAKE ON SOME OF THOSE PROJECTS AND WE GET UNRESTRICTED FUNDS FROM THE FROM THE GENERAL FUND THAT NOW WE GET TO USE FOR OTHER THINGS THAT OTHER THAT WE WOULD NOT BE ABLE TO DO. YOU SAID WHERE OUR SOURCES OF REVENUE. I HAVE NOT DONE THAT HERE YET, BUT I'VE DONE IT OTHER PLACES WHERE I'VE BEEN WHERE ESSENTIALLY WE AGREED TO PUT INFRASTRUCTURE IN. SOMETIMES WE CAN DO THAT EARLIER THAN THE CIP MIGHT ALLOW, AND WE'RE GOING TO PUT IN $3 MILLION OF INFRASTRUCTURE, AND YOU'RE GOING TO GIVE ME $3 MILLION OF GENERAL FUND THAT IS NOW UNRESTRICTED, THAT I CAN GO DO OTHER THINGS WITH THAT.

OTHERWISE WE WOULDN'T BE ABLE TO CONSIDER. THAT'S ESPECIALLY IMPORTANT WHEN WE CAN'T PIGEONHOLE IT. YOU KNOW, MAYBE YOU'VE GOT A GREAT RETAIL STORE OR, YOU KNOW, SOMETHING LIKE THAT, BUT I CAN'T GET I CAN'T FIT IT WITHIN AN ELIGIBLE PROJECT. RIGHT. WE CAN STILL PROVIDE INFRASTRUCTURE FOR THAT BUSINESS. ENTERPRISE. YEP. SO IF THE DDC COULD DO INFRASTRUCTURE, THEN THAT FREES UP MONEY IN THE CITY. THE CITY CAN 380 OR ANYTHING, QUITE LITERALLY ANYTHING. THE CITY COUNCIL HAS THE ABILITY UNDER THE STATUTES OF THREE OF THE CHAPTER 380 TO CREATE. THEY CAN SPEND TAX FUNDS ANYWHERE THEY WANT TO GENERAL FUND MONEY, ANYWHERE THEY WANT TO. NOW THEY STILL HAVE TO ANSWER TO THE TAXPAYERS, BY THE WAY. AND THAT'S REALLY THE ULTIMATE THAT'S THE ULTIMATE CHALLENGE, RIGHT? IS YOU'RE REPRESENTING THE PEOPLE AND WE DO TOO. BUT WE HAVE A LITTLE BIT DIFFERENT OPERATING ENVIRONMENT. WELL, WELL, THANK YOU FOR THAT CLARITY. AND I'M GOING TO SAY THE EDUCATION BECAUSE THANK YOU VICTORIA. DOES THIS ELECTRONIC.

CAN I GET I LIKE TO SHARE IT WITH THE COUNCIL. OH YEAH. SURE. IN AN ELECTRONIC. YEAH I THINK

[01:55:06]

[B.7. Update & Discussion of Esports Project Matching Grant -Antoine Long, Economic Development Manager]

LOOK, NEITHER ONE OF US IS AFRAID TO MAKE A PHONE CALL AND OPEN A DOOR. WE DO IT ALL THE TIME. WE'RE JUST TRYING TO. TO MAKE THAT MOVE FASTER AND MOVE THAT MORE EXPEDITIOUSLY TOWARDS THAT GOAL. YOU REMEMBER WHAT WE TALKED ABOUT ON THIS WAS, WAS HELP ME. I THINK WE TALKED ABOUT $30,000 AND WE'RE LOOKING FOR 30,000 MATCH FROM INDUSTRY. THAT CREATED A $60,000 GRANT. THAT GOES A LONG WAYS IN TERMS OF STANDING UP ADDITIONAL UNITS AT THE HIGH SCHOOL, AS WELL AS THE MIDDLE SCHOOLS. AND SO IT'S NOT LIKE WE'RE AND WE'RE NOT ASKING FOR ANY ONE PERSON TO PUT PUT THAT MONEY IN. WE'RE LOOKING FOR MUCH SMALLER CONTRIBUTIONS ALONG THE WAY. TWO, THREE, $5,000 FROM FROM 6 OR 8 PEOPLE. AND WE'RE DONE. WE'RE DONE. BECAUSE YOU ALL AGREED THAT YOU WANTED TO INVEST $30,000, MAKE A GRANT OF $30,000. FROM A WORKFORCE DEVELOPMENT STANDPOINT, AND WE THINK THIS IS A GREAT OPPORTUNITY FOR US TO LEVERAGE WHAT WE DID LAST YEAR, SHARE WHAT WE'RE PLANNING ON DOING, AND ASK FOR SOME ADDITIONAL HELP. SO TO YOUR SPECIFICITY, YEAH, LOOK, IF WE COULD IF WE COULD FIND OURSELVES AT THE END OF NEXT WEEK WITH WHATEVER, WHATEVER RESPONSES YOU'RE GOING TO PROVIDE, IF YOU COULD SET THAT GOAL FOR YOURSELF, THAT WOULD BE TREMENDOUS, BECAUSE AT SOME POINT WE'VE KIND OF BEEN WAITING AND HAVE NOT HAD THOSE RESPONSES. SO WE'RE GOING TO HAVE TO MOVE FORWARD IF WE IF WE ACTUALLY WANT TO LIVE UP TO WHAT WE SAID WE WERE GOING TO DO. SO CORRECT ME IF I'M WRONG AND I MAY BE AN OVERSIGHT ON OUR BEHALF, INDIVIDUALLY AND MAYBE EVEN COLLECTIVELY. BUT DIDN'T YOU GUYS? WE ASKED YOU TO PROVIDE SOME LANGUAGE? DID YOU GUYS PROVIDE US SOME LANGUAGE? DIDN'T WE ASK FOR THAT? LANGUAGE? I THINK SO, I THINK WE DID, BECAUSE I THINK WE DID. I THINK WHAT WE SAID WAS IT MIGHT BE EASIER FOR US TO MAKE THE WARM INTRODUCTION, THE WARM HANDOFF, INSTEAD OF YOU EVEN JUST CALLING AND SAYING, HEY, TASHA GAVE ME YOUR NAME, THAT IF WE DID A WARM INTRODUCTION BY EMAIL WITH LANGUAGE THAT YOU PROVIDE US, THAT MIGHT BE EVEN A BETTER WAY TO DO IT. WE CAN DO

[02:00:05]

PRESIDENT NOTION FOR MY BIRTHDAY TO. AND WE'RE GOING TO SING HAPPY BIRTHDAY WHEN WE OPEN I GOT YOU. I CAN GET THAT TO YOU TOMORROW. I SAY TWO YEAR SPECIFIC TIMELINE DEPENDING ON WHAT WE GET OUT OF HERE STILL. YEAH, WE WILL HAVE THAT TO YOU BEFORE CLOSE OF BUSINESS TOMORROW. OKAY. GOTCHA. WELL, WE WOULD BE SITTING HERE IF WE WEREN'T DISCUSSING FINANCES RIGHT NOW. JUST CUT TO THE CHASE. THANKS, FELICIA. THANK YOU. WELL, THANK YOU VERY MUCH.

ANTOINE. THIS IS GREAT SPEAKING. I KNOW THAT THERE'S A GREAT VALUE THAT HAS BEEN RECEIVED FROM IT ALL. TO BE HONEST, NOT ONLY EXPOSURE, EXPOSURE FOR THE KIDS, EXPOSURE FOR US, AND EXPOSURE AS A TEAM. AND YES, WE NEED TO WRAP IT UP. AND I'LL JUST PUT ONE MORE NOTE ON THAT.

THE BEST SOUTHWEST THEY ARE HAVING A STEAM COMPETITION NEXT MONTH. FEBRUARY 9TH IS A SATURDAY OVER AT CEDAR VALLEY, AND ESPORTS IS ONE OF THOSE THINGS THAT THEY'LL BE PARTICIPATING IN DESOTO ISD. SO THIS IS THE SECOND YEAR THEY'RE DOING THAT. THEY HAVE DRONE RACING, 3D PRINTING, ESPORTS, AND A NUMBER OF OTHER THINGS THAT SATURDAY, LIKE I SAID, SECOND, SECOND YEAR UP. SO I'LL SEE YOU GUYS SOME MORE INFORMATION ON THAT. I KNOW MATT HAS IT ON HIS NOTES. IT'S ON MY REPORT WITH THE DATE AND I DON'T THINK I HAD THE TIME. SO WE'LL MAKE SURE THAT YOU GET AN INVITATION TO THAT. THAT'S OVER AT CEDAR VALLEY COLLEGE. I WENT OVER THERE LAST YEAR AND THEY LET ME FLY A DRONE, AND I FLEW IT INTO THE AIR CONDITIONING VENTS. SO I'M NOT INVITED BACK THIS YEAR. SO. OKAY. THANK YOU. TURN YOUR HEAD TO THE THING

[B.8. Presentation regarding Community Missionary Baptist Church Purchase and Potential Financial Impacts on DeSoto Development Corporation - Matt Carlson, Chief Executive Officer.]

[02:05:05]

[02:10:01]

IT'S THE REASON I'M THRILLED ABOUT THE RELATIONSHIP THAT WE'RE BUILDING WITH OUR PARKS AND REC BOARD AND THINKING THROUGH THIS HOLISTICALLY, I'M VERY SUPPORTIVE OF WHAT THE OF WHAT THE CITY MANAGER IS TALKING ABOUT, OF US BRINGING TOGETHER ALL THESE DISPARATE IDEAS AND CREATING KIND OF A HOLISTIC PLAN THAT EMBRACES ALL OF THESE PIECES. I THINK IT'S CRITICALLY IMPORTANT TO OUR SUCCESS. AND YOU DON'T CLOSE ON THIS UNTIL WE GET THE ZONING CORRECT. SO THE ZONING, THE ZONING, IF IT HAPPENS AS IT SHOULD, WILL HAPPEN IN FEBRUARY. THIS WON'T CLOSE BEFORE THE END OF APRIL. THE CLOSING ON THIS IS CONTINGENT UPON GETTING THE ZONING IS THAT THAT IS NOT THE WAY THE PSA IS WRITTEN TODAY. INTENTIONALLY. WE DON'T WE DON'T WANT TO. WE DON'T WANT. I WOULD MUCH PREFER THAT TO BE THE CASE. WE BUT WE WILL LOSE CONTROL OF THE PIECE OF LAND IF WE DO. AND IF FOR SOME REASON, UNFORESEEN CIRCUMSTANCE OR WHATEVER THE ZONING DOESN'T HAPPEN, WE WOULD LOSE CONTROL OF THIS PIECE OF PROPERTY AND WE DON'T WANT TO DO THAT. SO WE WEREN'T GOING TO PUT SOMETHING INTO IT THAT THAT BY ITS VERY NATURE, COULD CHANGE THE DYNAMIC OF THAT TRANSACTION. IT DOESN'T SERVE AS A LEVER FOR US. OKAY. I KNOW YOU'RE THINKING, YES, I AM, BUT I'M THINKING IN THE INTEREST OF TIME. YEAH. DO WE HAVE TO DO ANY ENVIRONMENTALS BEFORE BEFORE IT'S PURCHASED OR NOT? WE DON'T HAVE TO, BUT WE'VE CHOSEN TO.

OKAY. AS PART OF OUR DUE DILIGENCE IS TO DO A PHASE ONE ENVIRONMENTAL. OKAY. ON THAT PIECE OF PROPERTY. I'M NOT SO CONCERNED ABOUT IT AS I AM ABOUT SOME OF ITS SURROUNDING PIECES OF PROPERTY. YEAH, SPECIFICALLY THE GAS STATION ON THE CORNER. BUT BUT NONETHELESS, WE'RE GOING TO GO AHEAD AND DO A PHASE ONE ENVIRONMENTAL AS JUST A PRECAUTION. OKAY. MAKE SURE THAT THERE'S NO INDICATORS THAT SUGGEST OTHERWISE. AND IF WE NEED TO MOVE TO A PHASE TWO WE'LL DO THAT. WE HAVE THE ABILITY TO DO THAT. ACCORDING TO OUR THE PSA CHANGES THE PRICE.

EXACTLY. PERHAPS. PROBABLY NOT THOUGH, DEPENDING ON HOW CONTAMINATED THE REMEDIATION. IF WE HAVE TO START LOOKING AT REMEDIATION, IT CERTAINLY WOULD. IT ABSOLUTELY WOULD. IT WOULD CHANGE THE DYNAMIC ENTIRELY. YEAH, ABSOLUTELY. THE FACT THAT WE WOULD HAVE TO DO A PHASE TWO WOULDN'T LIKELY CHANGE THE PRICE. IT'S WHAT KIND OF REMEDIATION CAME OUT OF THAT OR RECOMMENDED REMEDIATION CAME OUT OF THAT. THAT WOULD CERTAINLY MAKE MAKE US SIT UP AND GO, YOU KNOW, WE'RE NOT GOING TO TAKE ON A BUNCH OF LIABILITY. ANY ADDITIONAL QUESTIONS ON THAT? OBSERVATIONS? GREAT, GREAT. THE ZONING CHANGE. NO PRESSURE. WELL, THERE'S TWO COUNCIL PEOPLE SITTING IN THIS ROOM. I'LL TELL. NOT NOT TO PUT YOU GUYS ON THE SPOT. NO, I APPRECIATE BOTH THE GOOD NATUREDNESS BUT ALSO THE DUE DILIGENCE AND THE INTENTIONALITY THAT OUR COUNCIL HAS SHOWN IN MAKING THIS PROJECT MOVE FORWARD. YEAH, I THINK IT WAS THE RIGHT THING. SO THANK YOU. THANK YOU. OKAY. MOVING ON. THANK YOU VERY MUCH FOR THAT. YEAH. FOR THAT COMPREHENSIVE

[C. CONSENT AGENDA]

[02:15:04]

THE MEETING THAT WAS I'M SORRY THE AVAILABLE FUNDING AND UNDER NEW BUSINESS ON THAT AGENDA. THE SECOND BULLET POINT, THE THIRD BULLET POINT WAS THAT THE PARK BOARD UNANIMOUSLY VOTED TO APPROVE $2 MILLION OF THEIR FUNDS TO BE ALLOCATED TO THE PARKS AND RECREATION RECREATION PROJECT FOR THE EXPANSION OF THE LENGTH OF THE LANES TO OLYMPIC SIZE FACILITY. THE PARKS BOARD HAS APPROVED THAT. WE'VE ADDED IT TO OUR CONSENT AGENDA AS A MATTER OF CONVENIENCE. IF THERE'S ANY OTHER QUESTIONS, THE PARKS BOARD IS REPRESENTED AS WELL AS THE PARKS AND REC DEPARTMENT. IF YOU HAVE ANY SPECIFIC QUESTIONS FOR THEM. AND WE'LL PROBABLY NEED TO UPDATE THAT. IT'S NOT REALLY FOR THE EXTENSION OF THE LANES. WE TOOK MONEY FROM OUR CONTINGENCY TO EXTEND THE LANES. SO WE'RE ACTUALLY REPLACING THE FUNDING TO THE CONTINGENCY OF THE PROJECT AND NOT FOR THE EXTENSION OF THE LANES. ISN'T THAT A MATTER OF EXPEDIENCY, THOUGH? WHAT'S THAT? THAT YOU USE THE MONEY THAT YOU HAD TO GO AHEAD AND AUTHORIZE THE CONTRACT, BECAUSE WE HAD SOME GAPS IN OUR MEETINGS. SO WHAT WE REALLY WERE DOING WAS EXTENDING THE LANES. IT'S JUST HAPPENED. NOW THAT WHAT WE'RE REALLY DOING IS REPLACING THE CONTINGENCY.

THAT IS CORRECT. YES. THAT'S WHAT I THOUGHT. THAT'S CORRECT. OKAY. ANY QUESTIONS ON THE CONSENT AGENDA. OTHERWISE YOU NEED A MOTION. YES. OTHERWISE IN THAT. CAN I GET A MOTION ON THE CONSENT AGENDA, THE APPROVAL OF THE CONSENT AGENDA WITH THE ALTERATIONS THAT ARE MADE RELATIVE TO THE PM, IF YOU WILL. A MOTION. NO, NO. MOVE AS MOVE AS PRESENTED. SECOND. THE MOTION HAS BEEN IT'S BEEN MOTION. AND SECOND, THAT THE CONSENT AGENDA BE APPROVED. AND I'D LIKE TO SAY ALL IN FAVOR OF SAY I FOR I ANY OPPOSED. THE AYES HAVE IT AND NO OPPOSITION MOTION PASSES. THANK YOU GUYS VERY MUCH FOR BEING A PATIENT WITH US IF YOU AND THANK YOU ALL. ABSOLUTELY APPRECIATE YOU ALL. OKAY. OKAY. THANK YOU. OKAY. CONGRATULATIONS TO YOU ALL. WE APPRECIATE IT. THANK YOU AND HAPPY BIRTHDAY. THANK YOU. ENJOY THE REST OF THE DAY. ALL OF THAT. THANK YOU MATTHEW WE

[D. EXECUTIVE SESSION UNDER TEXAS GOVERNMENT CODE]

[02:20:05]

[E. RETURN TO OPEN SESSION]

[BRIEFING BY CHIEF EXECUTIVE OFFICER - Matt Carlson]

THERE'S MOST OF THESE, EITHER ONE OR SOME, OR ALL OF US WILL BE AT THESE THESE VARIOUS FUNCTIONS. WE WOULD LOVE TO HAVE YOU AS PART OF THE TEAM WITH US AT ANY OF THESE. THE FIRST OF THOSE UPCOMING IS THE STEAM COMPETITION AT CEDAR VALLEY COLLEGE. IT'S ON FEBRUARY 8TH, AND ANTOINE IS GOING TO GET YOU SOME HARD DETAILS AROUND THAT. OUR FEBRUARY BOARD MEETING IS ON THE 10TH OF FEBRUARY. THAT'S THE SECOND MONDAY OF THE MONTH. THE STATE OF THE CITY THAT FOLLOWS

[02:25:05]

STATE OF THE CITY IS UPCOMING. AT LUNCHTIME ON FEBRUARY THE 13TH. WE WILL HAVE A TABLE FOR THAT. WE WOULD INVITE YOU ALL TO JOIN US AS OUR GUESTS, SO PLEASE LET MELBA KNOW IF YOU'RE GOING TO BE ABLE TO DO THAT OR NOT. JOINT MEETING OF THE BOARDS, THE COMMISSIONS AND THE COUNCIL IS ON FEBRUARY 22ND. WE'RE WORKING ON AN AGENDA FOR THAT WITH OUR COLLEAGUES. UNFORTUNATELY, YOU'RE GOING TO HAVE TO PUT UP WITH ANTOINE AT THAT. I WILL NOT BE AT THAT MEETING. LINDSAY AND I ARE HAVING A CELEBRATION OF OUR WEDDING. WE NEVER DID HAVE A CELEBRATION HERE, BUT WE'RE GOING TO HAVE ONE IN PHOENIX FOR A RECEPTION VISIT. THAT'S WHERE HER FAMILY AND FRIENDS ALL COME FROM. SO I WILL BE IN PHOENIX OVER THAT ON THAT SATURDAY. SO I WILL MISS YOU AND I APOLOGIZE.

WE'VE BEEN TRYING TO DO THIS FOR HOW LONG? AND THEN I DON'T SHOW UP. THAT'S REALLY BAD, BUT I HAVE I HAVE SOMEBODY WHO'S EVERY BIT AS GOOD AS ME AND EVEN BETTER IN MANY CASES, WHO WILL BE THERE TO REPRESENT US AT THE TEXAS ECONOMIC DEVELOPMENT COUNCIL'S WINTER RETREAT IS DOWN IN AUSTIN FEBRUARY 25TH THROUGH 28TH. OUR TEAM WILL BE IT WILL BE THERE AND WE'LL BE BE PRESENT. ANY OF YOU ARE WELCOME TO JOIN US. MANY TIMES THERE ARE COUNCIL. THERE ARE COUNCIL MEMBERS AND OUR BOARD MEMBERS WHO JOIN US FOR THE WHO JOIN OTHER ECONOMIC DEVELOPMENT CORPORATIONS AND COME ALONG. SOME OF YOU GUYS WENT DOWN TO THE SALES TAX MEETING. I ASSURE YOU THIS IS A LOT MORE FUN. YES. NEXT MEETING. FREE RIDES. SO DON'T LET THAT OPPORTUNITY SKEW YOUR VIEW. IN TERMS OF THE REST OF US. THE REST OF THESE ARE JUST DATES THAT ARE THAT ARE UPCOMING FOR A LOT OF THE THINGS THAT WE'RE WORKING ON AND DOING. AND THEN AT THE VERY BOTTOM OF THIS PAGE ARE PROJECT UPDATES AROUND OUR LIFE SCIENCE CAMPUS, THE I-35 CORRIDOR, AND WHAT'S GOING ON WITH THAT. MEETINGS ARE ONGOING WITH KROGER. A RESTAURANT ROW IS AN AREA THAT'S NORTH OF THAT THAT WE'RE TRYING TO WORK ON, AND LOOKING AT HOW THE CITY COULD MAKE KEY INVESTMENTS IN INFRASTRUCTURE THAT WOULD ALLOW RESTAURANTS TO LOOK AND SAY, OH, THAT'S A PLACE WHERE I WOULD WANT TO BE RIGHT NOW. IT'S JUST RAW LAND AND IT'S REALLY HARD TO GET EXCITED ABOUT IT. BUT IF WE CREATED A WATER FEATURE ON THE BACKSIDE OF THAT TOOK THE CREEK AND ENABLED THAT, PUT THAT ON THE GROUND IN COORDINATION WITH THE PROPERTY OWNER TO GET THAT DONE, WE FEEL CERTAIN THAT WE'D HAVE SOME SOME INTERESTED PARTIES THERE. THE ASSEMBLAGE THAT WE'VE TALKED ABOUT AT THE ENTERTAINMENT CENTER IS PROGRESSING NICELY. THERE'S SEVERAL CIVIL AND ARCHITECTURAL FIRMS, MEPS THAT ARE WORKING ON THAT TO PREPARE TO PREPARE OPINIONS OF PROBABLE COST. THAT GROUP IS LOOKING TO TAKE IT TO THEIR INVESTORS SOMEWHERE AROUND THE END OF FEBRUARY, AFTER THEY'VE ACCUMULATED ALL THOSE COSTS. SO WE'RE SUPER EXCITED ABOUT THAT OPPORTUNITY AS THAT WOULD FOLLOW ON THEN WITH CAPITAL AND DEVELOPER DISCUSSIONS. HAMPTON ROAD CORRIDOR, WE'VE KIND OF BEATEN TO DEATH TONIGHT. THE OTHER ONE THAT I'M REALLY EXCITED ABOUT THAT WE'VE KIND OF FINALIZED, BUT AGAIN, IT'S WAITING FOR THE REZONING HEARING IS WE HAVE FINALIZED THE CONTRACT WITH CHICKEN SHACK. ALL THE DETAILS OF THAT HAVE BEEN WORKED OUT BETWEEN THE PARTIES. THERE'S A LEASE AGREEMENT THAT STILL HAS TO BE DRAWN UP, BUT THE NEW OWNER THERE, TOM AND TIFFANY DERRY, REQUESTED THAT WE NOT SET A CLOSING DATE UNTIL AFTER THE REZONING. AGAIN, WE'RE ASKING THEM TO DO SOMETHING THAT JUST WOULDN'T MAKE SENSE IF IT DIDN'T GET REZONED. THEY'RE NOT THEY'RE NOT INTERESTED IN THAT PIECE OF PROPERTY. SO NEEDLESS TO SAY, YOU KNOW, WHEN SOMEBODY TELLS ME, OH, THERE'S NOBODY INTERESTED IN THESE PROPERTIES, I'M LIKE, MAN, THEY'VE BEEN CIRCLING FOR A YEAR. WE CAN'T WAIT TO GET IT DONE BECAUSE WE THINK IT'S GOING TO IT'S GOING TO OPEN UP THE DOORS FOR A LOT OF OTHER THINGS GOING ON. THAT'S WHY YOU DO KNOW THAT THE CHAMBER MEETING IS THURSDAY, NOT FEBRUARY 16TH, BUT IT'S LIKE THURSDAY, JANUARY 6TH. OH, DID I SCREW THAT UP? THERE YOU GO. I JUST WANT TO MAKE SURE Y'ALL KNOW I KNOW FEBRUARY 3RD OF THE TEAM ARE GOING TO BE THERE FOR THAT. I WILL NOT BUT BUT ANTOINE AND SOLI AND MELBA ARE ALL GOING TO BE THERE. OKAY. I JUST WANT TO MAKE SURE. ANY OTHER QUESTIONS THAT I CAN ANSWER FOR ANYBODY, ANY QUESTIONS FOR MR. EVER? THANK YOU VERY MUCH.

APPRECIATE YOU. WISH YOU ALL A GREAT NEW YEAR. WE GOT ONE MORE AGENDA. YES. YEAH. AGENDA ITEMS. YES. YEAH. THERE'S ONE MORE AGENDA ITEM, MR. PRESIDENT THAT'S BACK TO YOU. BOARD

[G. BOARD ANNOUNCEMENTS]

[02:30:03]

AND THAT'S STATE. HOWEVER, IT WAS ALWAYS HER REQUEST THAT SHE BE DONATED TO SCIENCE. AND SO IT'S JUST BEEN A VERY INTERESTING PROCESS TO BE GOING THROUGH. I FORGOT TO SAY SOMETHING. RIGHT NOW WE HAVE ANNOUNCEMENTS ANYWHERE YET. BUT JUST AN INTERESTING DYNAMIC AND LEARNING EXPLORING THAT AS WELL, ESPECIALLY WITH THE BLACK FAMILY AND CULTURALLY AND ALL THE THINGS THAT THAT SOME PEOPLE WENT THROUGH. YES, YES, YES INDEED, REALLY, REALLY SINCERELY. THANK YOU FOR SHARING WITH US. THANK YOU. IN THE SPIRIT OF SHARING. IT IS WITH MIXED EMOTIONS AND THAT I WANT TO SHARE WITH EVERYONE AT THIS TIME. YOU KNOW, I KNOW YOU ALL LOVE ME. I KNOW. WOW, IT'S FUNNY. I KNOW THE RELATIONSHIPS AND THE CAMARADERIE THAT WE'VE ALL BUILT. AND DOCTOR GARRETT PRICE AND I HAVE REALLY, REALLY CONNECTED SINCE THIS ALL CAME TOGETHER. I KNOW HE LOVES ME TOO, BUT I KNOW YOU LOVE LATASHA MORE. YOU KNOW THIS. SO I AM. SO I WILL SAY, AND AT THE SAME TIME. WITH ALL OF YOU. I'M SADDENED TO SAY THAT LATASHA WILL BE MOVING ON. NO. I KNOW SHE HAS. SHE HAS GREATER THINGS THAT SHE NEEDS TO ADDRESS, WANTS TO ADDRESS, LOVES TO ADDRESS, AND WILL BE ADDRESSING. AND YET, HOW DO WE SAY, HOW DO WE TELL HER THAT WE REALLY, REALLY GOING TO MISS HER AND WE COULDN'T FIGURE OUT ANY WAY TO RECOGNIZE THE CONTRIBUTIONS THAT SHE'S MADE TO THIS DYNAMIC BOARD? SUCH A TREMENDOUS GROUP OF LEADERS.

AND YET YOU'VE BEEN A LEADER AMONG LEADERS. AND WE THANK WE THANK YOU FOR FUCHSIA LEE, FOR ALL THAT YOU'VE GIVEN AND THAT ALL YOU WILL CONTINUE TO GIVE, BECAUSE WE DECIDED THAT YOU CAN HAVE THIS ONLY IF YOU DETERMINE THAT YOU'RE GOING TO BE IN THE X. ■LOOK, WE WANT YOU TO KNOW HW MUCH WE CARE FOR YOU, LOVE YOU, RESPECT YOU, BUT WE WANT TO SAY NOT GOODBYE. JUST SO LONG FOR A MINUTE. RIGHT? EXACTLY, EXACTLY. WELL, I WANT TO SAY THANK YOU. WELL, I APPRECIATE THAT. AND I'M TICKETS TO DUBAI. TWO WEEKS TRIP TO DUBAI. WELL, YOU KNOW, THIS WAS THIS WAS A THANK YOU, PRESIDENT. WOW. AND THIS IS THIS WAS A VERY DIFFICULT DECISION BECAUSE I LOVE THIS BOARD. I LOVE WITH EVERYTHING THAT THIS BOARD STANDS FOR STANDS FOR. BUT WHAT I REALLY APPRECIATE MOST WHO'S HERE NOW NO SHADE TO ANYBODY HERE WHO WAS HERE BEFORE. BUT THE GROUP THAT'S HERE NOW, I BELIEVE REALLY, GENUINELY CARES ABOUT THE CITY OF DESOTO AND IS PRIORITIZING ITS FUTURE LIKE, AND I LOVE BEING A PART OF PEOPLE WHO WANT TO SEE ACTION. SO I SAY TO YOU, YOU KNOW, I'M JUST A SMALL PART OF THIS, SO THIS WILL GO ON WITHOUT ME, BUT I WILL CONTINUE TO CHEER AND ADVOCATE AND CHAMPION. I'VE ALREADY SAID IF THERE'S ANYTHING THAT I CAN DO, YOU KNOW, YOU CAN REACH OUT AND CALL ME ANYTIME. I'LL BE AVAILABLE. BUT ONE OF THE THINGS THAT I STRUGGLED WITH IS REALLY HAVING TO PRIORITIZE ALL THE OTHER THINGS THAT I'M JUGGLING RIGHT NOW, WHICH IS A LOT. AND I JUST SAID RIGHT NOW, AND YOU WERE TALKING ABOUT YOUR GRANDMOTHER. THERE'S A LADY THAT ADOPTED ME AS MY I'M HER GRANDDAUGHTER, ADOPTED GRANDDAUGHTER. SHE'S 98 YEARS OLD. SHE HAS NO FAMILY, AND I TAKE CARE OF HER. AND SHE'S IN HOSPICE RIGHT NOW. AND THIS LADY DEALING WITH MY FAMILY, WITH MY WORK, ALL THE OTHER EXPANDED ROLES IN MY WORK THAT'S COMING UP, I JUST HAVE TO MAKE SURE THAT I'M PRESENT IN ALL THOSE

[02:35:05]

I'LL TALK OFFLINE. YEAH, I HAD TO MAKE A DECISION. THAT'S RIGHT. YES. BECAUSE SOME FOLKS JUST BURN IT DOWN. EXACTLY. AND WE APPRECIATE YOU FOR THAT. BURNING US. YES. NO, I WOULD NEVER I WOULD NEVER, I WOULD NEVER, BUT THANK YOU, THANK YOU, THANK YOU. SO THANK YOU, THANK YOU, THANK YOU, THANK YOU, THANK YOU. ANYBODY ELSE WANT TO SHARE. BUT WE WANT TO PRESENT. YOU WHILE YOU YET LIVE. YES, YES, YES. YOU CAN ALWAYS COME BACK. YEAH. SO WE HAVE TO GET IT.

CHEERS, TASHA. CHEERS. THANK YOU. YES. CHEERS. CHEERS. BUT ONE THING WE MUST DO IS WE MUST GET A PHOTO OF US AND AROUND THE GP THERE TO GO TO ALL OF US. OKAY, SO WE'RE ALL TOGETHER AS A FAMILY? YES. FOR SURE. THANK YOU VERY MUCH. ON THAT NOTE, ANYTHING ELSE ANYONE NEEDS TO SHARE BEFORE WE. YES, SIR. JUST ONE THING. FIRST OFF, NATASHA, IT'LL BE HARD TO SEE YOU LEAVE.

I FEEL THAT WE HAVE A GOOD GROUP WORKING, AND I KNOW WE'LL CONTINUE TO DO WORK. GOOD WORK MOVING FORWARD. I JUST WANTED TO LET YOU GUYS KNOW IN THIS ADDRESS THAT I'M GOING TO GIVE THAT YALE MEDICAL SCHOOL AND YALE SCHOOL OF PUBLIC HEALTH NEXT WEEK, WHERE WE TALK ABOUT HEALTHSPAN AND LONGEVITY. I AM GOING TO AND I HAVE A COUPLE SLIDES DEDICATED TO OUR WORK. SO JUST KNOW THAT OUR WORK IS GOING TO REACH IVY LEAGUE EARS TO BE. ESTABLISHMENT AND LONGEVITY. AND SO I'LL BE REALLY PROUD TO TALK ABOUT OUR WORK AND THE BIOTECH CAMPUS, AND A LOT OF THE THINGS THAT WE'VE TOUCHED ON IN THIS GROUP. SO I JUST WANT YOU TO KNOW, THIS IS A SPECIAL GROUP, AND WE'RE MAKING NOISES AND PLACES THAT WE DIDN'T KNOW WE CAN MAKE NOISES AT. SO YEAH. AND THAT'S A TEAM EFFORT. SO I'M GOING TO BE PROUD TO TALK ABOUT OUR EFFORTS. SO I JUST WANT TO LET YOU GUYS KNOW THAT. THAT'S GREAT. YEAH. THANK YOU FOR YOUR YOUR WILLINGNESS. THANK YOU VERY MUCH FOR YOUR LEADERSHIP IN THAT CAPACITY AS WELL. TREMENDOUSLY. ALL RIGHT. SO THAT'S IT. NO FURTHER ITEMS OF DISCUSSION. THIS MEETING IS THEREFORE ADJOURNED AT

* This transcript was compiled from uncorrected Closed Captioning.