[1. CALL TO ORDER AND CERTIFICATION OF A QUORUM]
[00:00:02]
3:00 PM AND WE'LL CALL THIS MEETING IN THE DICKINSON MANAGEMENT DISTRICT TO ORDER.
CAN WE GET CERTIFICATION OF A QUORUM, PLEASE? WE CAN.
UM, MR. BLACKSHIRE, WOULD YOU DELIVER THE INVOCATION? AND MR. DIETZ, WOULD YOU LEAD US IN THE PLEDGES? HEAVENLY FATHER, THANK YOU FOR THIS GROUP THIS EVENING.
UH, LORD, LET US, UH, FOLLOW YOUR WILL AND DO THE TAX PAYING CITIZENS OF THE CITY OF DICKINSON A GOOD SERVICE HERE TONIGHT.
I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL, HONOR THE TEXAS FLAG.
I PLEDGE ALLEGIANCE TO THE TEXAS ONE STATE UNDER GOD, ONE AND INDIVISIBLE.
AND, UM, NOW WE WILL, UH, TAKE PUBLIC COMMENTS.
MEMBERS OF THE PUBLIC ARE INVITED TO GIVE COMMENTS AT THIS TIME LASTING NO LONGER THAN THREE MINUTES.
COMMENTS MAY BE GENERAL IN NATURE OR MAY ADDRESS A SPECIFIC AGENDA ITEM AND SHOULD BE DIRECTED AT THE ENTIRE BOARD.
NOT INDIVIDUAL MEMBERS OF THE BOARD OR STAFF.
ANY SPEAKER MAKING PERSONAL ATTACKS OR USING GELLER LANGUAGE SHALL FORFEIT HIS OR HER REMAINING TIME AND SHALL BE SEATED.
AND COMPLIANCE WITH THE OPEN MEETINGS ACTS, THE MANAGEMENT DISTRICT MAY NOT DELIBERATE.
DO WE HAVE ANYBODY SIGNED UP FOR OPEN COMMENT TODAY? PUBLIC COMMENT.
IS THERE ANYBODY IN THE AUDIENCE THAT WISHES TO SPEAK AT THIS TIME? OKAY, AWESOME.
[4. ANNOUNCEMENTS AND PRESENTATIONS]
THEN MOVING ON TO ANNOUNCEMENTS AND PRESENTATIONS, BOARD COMMENTS.FULCHER, DO YOU HAVE ANY COMMENTS? UH, NONE.
BUT IN THE ABSENCE OF, UH, MR. OVAL, JUST SAY SPEND LOCALLY.
UM, I GUESS, UH, NOTHING TO DO.
AND YOU KNOW WHAT, AND, AND ME BEING RUNNING LATE, THE PLAQUE IS IN THE BACKSEAT OF MY CAR, AND I'LL BRING THAT IN AT THE END OF THE MEETING.
BUT YEAH, GO AHEAD AND GIVE AN UPDATE ON THAT.
WE ATTENDED THE DICKINSON VOLUNTEER FIRE DEPARTMENT, UH, AWARD CEREMONY.
AND, UH, MANAGEMENT DISTRICT WAS, UH, RECOGNIZED AND, UH, AMY AND I ACCEPTED A PLAQUE FOR, UH, FOR US HELPING THEM OUT WITH SOME FUNDS.
AND, UH, I GUESS IT WAS THAT FIRETRUCK.
YEAH, IT WAS A GREAT, BUT, UH, THAT WAS A GOOD EVENING.
AND, UH, GOT THE, UH, FESTIVAL LIGHTS COMING UP.
JUST ENCOURAGE EVERYBODY TO VISIT THE FESTIVAL LIGHTS.
JUST LIKE TO WELCOME, UM, THOSE THAT, UH, ARE HERE IN PERSON AND THOSE, UH, WATCHING ONLINE, UH, DON'T REALLY HAVE ANY COMMENTS.
AND MR. BLACKSHIRE STOLE MINE, SO, UM, IT WAS A GREAT EVENT.
WE APPRECIATE THE FIRE DEPARTMENT FOR, UM, HONORING US OR REC OR RECOGNIZING US FOR THAT AWARD.
UM, AND LIKE I SAID, I DO HAVE THE PLAQUE IN MY CAR, SO I'LL BRING THAT IN BEFORE I TAKE OFF FOR THE EVENING.
I DON'T THINK WE HAVE ANY STAFF UPDATES.
MR. CAREY, IS THERE ANYTHING THAT, UH, THAT YOU CAN THINK OF? NO, WE'RE, WE'RE GOOD.
ACTUALLY, I NEED TO GO BACK ON MY COMMENTS.
SO, UM, LAST MONTH, IT'S PROBABLY BEEN ABOUT FOUR OR FIVE WEEKS NOW, I THINK WE HAD ONE OF THE PROPERTIES THAT WE OWN THAT WERE, UM, A BUYOUT WHERE YOU CAN'T PUT A HOUSE ON THERE.
YOU CAN'T PUT A BUSINESS ON THERE.
IT IS JUST A PIECE OF LAND THAT WE OWN.
UM, WE WORKED WITH THE HOUSTON WILDERNESS AND THEY DONATED, I DON'T KNOW HOW MANY TREES THEY PLANTED.
IT WAS PROBABLY, I FEEL LIKE 1500 WAS WHAT WAS WRITTEN IN THERE WAS THE GOAL, BUT I DON'T THINK THAT'S HOW MANY WE SHOVED INTO THE PROPERTY.
RIGHT? SO AVENUE F IS WHERE THE PROPERTY'S LOCATED, AND THEY CAME OUT AND HAD VOLUNTEERS FROM, UM, ONE OF THE EAST SIDE OF HOUSTON'S, UH, SCHOOL DISTRICTS.
AND THEY DUG HOLES AND PLANTED SOME TREES ON THAT PROPERTY.
SO IT'D BE REALLY NICE, YOU KNOW, IT IS A FLOOD PROPERTY, SO IT'LL BE A GREAT PLACE FOR THOSE TREES TO GET A LOT OF WATER AND SOAK IT UP FOR THE RESIDENTS THERE.
[00:05:01]
AND, UM, I'VE BEEN DRIVING BY REGULARLY AND CHECKING ON IT, AND THE FIRE DEPARTMENT HAS BEEN GRACIOUS ENOUGH IN OUR DROUGHT SITUATION WE'RE IN TO GO AND, UM, WATER THOSE TREES FOR US ON A PRETTY REGULAR BASIS THAT MR. MAGGIO HAS, UM, ORGANIZED.SO REALLY APPRECIATE STAFF AND THE FIRE DEPARTMENT FOR THEIR HELP WITH THAT.
I THINK IT'S GONNA BE A GREAT ASSET FOR THE COMMUNITY.
ALSO, WE DID LEAVE A SPACE IN THERE THAT EVENTUALLY WHEN WE DO HAVE SOME FUNDS THAT WE COULD PUT A GRAVEL PATH IN, UH, IT'S ABOUT A QUARTER MILE TRAIL.
SO JUST A REALLY NICE AMENITY FOR THAT NEIGHBORHOOD OVER THERE.
I I WOULD VENTURE TO CALL IT A POCKET PARK SOMEDAY, BUT I WANNA BE VERY CAREFUL USING THE WORD PARK AND GETTING PEOPLE ALARMED RIGHT WAY DOWN THE ROAD.
AS THOSE TREES MATURE, WE'LL HAVE SOME TREE CANOPY.
WE'LL START SEEING BIRDS IN THERE AND ALL KINDS OF FUN STUFF.
DO YOU HAVE AN ADDRESS FOR THAT? WHAT WAS THE THINK 1 0 1 AVENUE? NO, IT'S, UH, IT'S NOT 33 0 5.
I'LL, I'LL GIVE YOU AN ADDRESS IN A MINUTE.
AVENUE F 27 0 1 AVENUE CAPITAL.
THINK IT'S RIGHT, IT'S LIKE LITERALLY KIN KENNY CORNER FROM THE COMMUNITY CENTER ON THE BACKSIDE.
I THINK IT'S 27 0 1, BUT I'M NOT TALKING.
I THINK IT IS 27 0 1 AVENUE F.
[5. CONSENT AGENDA]
ALRIGHT, THE CONSENT AGENDA.THE FOLLOWING ITEMS ARE CONSIDERED ROUTINE BY THE MANAGEMENT DISTRICT AND WILL BE ENACTED BY ONE MOTION.
THERE WILL NOT BE A SEP SEPARATE DISCUSSION ON THESE ITEMS UNLESS A BOARD MEMBER REQUESTS IN WHICH EVENT THE ITEM WILL BE REMOVED FROM THE CONSENT AGENDA AND DISCUSSED AFTER THE CONSENT AGENDA.
A CONSIDERATION AND PO POSSIBLE ACTION TO APPROVE THE MINUTES OF THE DICKINSON MANAGEMENT DISTRICT.
NUMBER ONE, REGULAR MEETING HELD ON SEPTEMBER 30TH, 2025.
FIVE B CONSIDERATION AND POSSIBLE ACTION TO APPROVE THE FINANCIAL REPORT FOR AUGUST 20, 25 AND FIVE C CONSIDERATION AND POSSIBLE ACTION TO APPROVE THE MONTHLY ADMINISTRATIVE SER SERVICE AGREEMENT FEE TRANSFER REQUEST FOR THE SEPTEMBER AND OCTOBER, 2025.
WHAT IS YOUR PLEASURE? MOVE TO APPROVE ANY DISCUSSION.
WE DON'T HAVE ANY OLD BUSINESS
[7.A Consideration and possible action to establish a procedure for the handling and evaluation of applications for funding.]
AND SO WE'LL MOVE TO NEW BUSINESS SEVEN.A CONSIDERATION AND POSSIBLE ACTION TO ESTABLISH A PROCEDURE FOR HANDLING AND FOR THE HANDLING AND EVALUATION OF APPLICATIONS FOR FUNDING.
UH, MADAM CHAIR, THIS ITEM WAS ON THE AGENDA BECAUSE, UH, STAFF WAS, OR STAFF HAD A CONVERSATION ABOUT, UH, HOW THESE REQUESTS OUGHT TO BE HANDLED.
UH, HISTORICALLY, AT LEAST IN THE TIME I'VE BEEN, UH, WITH THE CITY, UH, IT'S, IT SEEMED TO ME THAT IT WAS THE PREVIOUS BOARD PRESIDENT THAT WOULD RECEIVE THE FUNDING REQUESTS IN, AND THAT HE SEEMED TO, UH, HAVE A LOT OF SAY IN WHICH ONE WOULD PROCEED TO THE BOARD AND, AND WHATNOT.
I, I'M, I, I'M NOT FAMILIAR WITH WHAT ALL HE WOULD'VE SHARED WITH THE INDIVIDUAL BOARD MEMBERS, BUT, UM, I DO SEE THAT, UH, IN THE BOARD BYLAWS THERE ARE, YOU KNOW, THERE IS NO PROCEDURES SET FORTH FOR HOW THESE REQUESTS OUGHT TO BE HANDLED.
AND SO, UM, STAFF JUST FELT THAT IT WOULD BE, UH, AN APPROPRIATE TOPIC OF CONVERSATION TO BRING TO THE BOARD, UH, ON WHETHER YOU GUYS WOULD WANT TO, UH, MAYBE INITIATE THE PROCESS OF PUTTING TOGETHER A SET OF PROCEDURES, YOU KNOW, THAT WE COULD FINALIZE AND PUT ONLINE ALONG WITH THE, UH, THE FUNDING APPLICATION, YOU KNOW, UH, PACKET MATERIALS TO FORMS AND SUCH SO THAT WE KNOW HOW TO HANDLE THOSE THINGS, UH, AS WE RECEIVE THEM.
DOES ANYBODY HAVE ANY, WHAT'S THE VOLUME OF, UH, APPLICATIONS? UM, BECAUSE THE APPLICATIONS DON'T COME TO ME.
I, I'M HOPING MR. MAG CONS, I, I DON'T KNOW.
AND SO THAT'S PART OF WHY WE
I MEAN, UH, YEAH, I MEAN, I'VE ONLY BEEN TO WHAT, THIS IS MY SECOND MEETING, OR THIRD, I GUESS.
AND THIS IS MY THIRD AS PRESIDENT, SO, UM, YEAH, THERE'S ONE SO FAR.
SO I WOULD SAY THAT, GO AHEAD, DR.
I WAS JUST GONNA SAY, IT'S, IT'S BEEN VARIABLE OVER THE, OVER THE YEARS.
UH, THERE ARE SOME MONTHS FOR WHATEVER REASON THERE, THERE'S A CLUSTER OF, UH, REQUESTS THAT COME IN.
AND, UH, OTHER TIMES WE GET NOTHING, SO THERE'S REALLY NO WAY OF PREDICTING THAT MM-HMM
EXCEPT THAT, UH, IT, IT'S PROBABLY ANECDOTAL,
[00:10:01]
BUT, UH, MY SENSE IS THAT WHEN THERE'S SOME DISCUSSION OF A SIGNIFICANT SUM OF MONEY THAT'S BEEN GRANTED FOR ONE THING OR ANOTHER, IT LEADS TO A FLURRY OF APPLICATIONS.SO WE JUST HAVE TO, I WOULD AGREE WITH THAT.
DO WHAT WE DO AND SEE WHAT WE GET.
NO, I THINK HAVING A FORMAL PROCESS WOULD BE APPRECIATED BY ME AS THE PRESIDENT.
I DON'T WANNA HAVE TO SCREEN ALL OF THOSE.
AND I THINK THAT THEY SHOULD COME THROUGH THE CITY AND POTENTIALLY HAVE THE CITY ATTORNEY LOOK AT THOSE, MATT, LOOK AT THOSE, AND THEN BRING THEM TO ME, AND THEN WE CAN, UM, ME OR MR. BLACK SHARE AS THE VICE PRESIDENT AND WE CAN KIND OF DETERMINE YEAH.
DO THEY MEET THE STANDARD FOR BEING CONSIDERED, AND THEN HOW DOES THAT FLOW? SO I WOULD CERTAINLY BE OPEN TO THAT IF YOU HAVE ANY SUGGESTIONS ON HOW WE SHOULD STREAMLINE THAT PROCESS.
YEAH, I, I DON'T AGREE WITH THAT.
UM, WE'RE A FIVE MEMBER BOARD AND ANY CONSIDERATION OF ANY GRANT APPLICATIONS SHOULD COME TO THE FULL BOARD, COME TO THE FULL BOARD, NOT SO, SO I WOULD NOT A SCREENING BY A PORTION OF THE, UH, UNDERSTOOD.
I I WOULD RECOMMEND THAT THEY DO COME THROUGH STAFF FIRST THOUGH, SO THAT WE CAN GET THEM DISTRIBUTED TO YOU GUYS SINCE YOU DON'T CHECK YOUR EMAILS, UH, THE CITY EMAILS AS MUCH.
AND IF SOMEBODY HAND DELIVERS IT TO, TO STAFF, THEN WE COULD GET IT PRESENTED AT THAT POINT.
I'M SORRY, MR. DIETZ, I THOUGHT YOU WERE DONE.
SO, UM, YEAH, I DON'T HAVE A PROBLEM WITH, UM, STAFF TAKING A LOOK AT IT FROM THE, STRICTLY FROM THE STANDPOINT OF IS THIS, UH, REQUEST WITHIN THE DISTRICT AND, AND THE, THOSE TYPE OF, UM, MECHANICAL THINGS THAT COULD, YOU KNOW, AUTOMATICALLY EXCLUDE THE REQUEST.
AND THAT'S WHAT I, THAT'S WHAT I MEANT BY MY COMMENTS.
BUT AS FAR AS THE MERITS, UM, I'LL BE FULL BOARD.
I, I WOULDN'T RECOMMEND THAT WE SCREEN THEM AT ALL.
I WOULD RECOMMEND THAT IT COMES TO STAFF AND, SORRY, I THOUGHT IT WAS ON, I WOULD RECOMMEND IT COMES TO STAFF AND WE JUST AUTOMATICALLY DISTRIBUTE IT TO THE BOARD AND YOU GUYS SCREEN IT.
THAT'S NOT, I, I WOULDN'T THINK THAT THAT WOULD BE UNDERNEATH THE, THE FUNCTION OF MY POSITION OR MY ROLE THAT THAT'S FINE.
SO WE CURRENTLY HAVE THE APPLICATION, THAT'S WHAT WE HAVE TODAY, RIGHT? THE APPLICATION APPLICATIONS FOR THEM TO FILL OUT FORM, APPLICATION FORM.
FORM, FORM FOR THE, SO YEAH, WE CAN THROW AROUND MAYBE A DRAFT FOR PROCEDURE AND MAYBE ALL AT THE SAME TIME.
WHAT IT, WHAT IT MAY MORPH INTO IS JUST A CHECKLIST BEING ADDED TO THE APPLICATION FOR, BUT, BUT WE CAN, WE CAN, WE CAN SEE FOR WHAT THE APPLICATION SHOULD CONTAIN.
WHEN YOU SAY A CHECKLIST, I, I, I'M GUESSING NOT CHECKLIST.
SO, SO WHEN, RATHER THAN A FULL-BLOWN PROCEDURE, I'VE, I I, I'VE SEEN THAT CHECKLISTS SERVE, SERVE A BETTER PURPOSE SOMETIMES.
SO IF WE ALREADY HAVE THE APPLICATION FORM MM-HMM
WE THROW AROUND WHAT WOULD BE NEEDED IN THIS PROCEDURE, THE PROCEDURE COULD JUST SIMPLY BE A CHECKLIST OF ITEMS, RIGHT? SO THEN THE APPLICANT WHO'S FILLING PROCEDURE, WHO'S FILLING OUT THE CHECKLIST, IS IT THE APPLICANT OR STAFF MEMBER OR, I MEAN, IS IT A STAFF MEMBER WHO REVIEWS THE APPLICATION TO CHECK OFF THE CHECKLIST? TO BE, TO BE, TO BE DETERMINED.
I COULD SEE THAT AS IN, SO LIKE THE APPLICANT FILLS OUT THE FORM CHECK, THEY TURN IT INTO THE CITY SECRETARY'S OFFICE CHECK, THE ATTORNEY CHECKS IT FOR VALIDITY BASED ON OUR BYLAW THAT YEAH.
AND THAT RIGHT THERE IS A VERY BIG PIECE, YOU KNOW, AND I'M, I'M NOT SURE OF LIKE, THAT'S A, THAT'S A CHECK BOX, LIKE CHECKLIST KIND OF BOX KIND OF ITEM, YOU KNOW, THERE IS, IS TO WHAT EXTENT DOES THE BOARD WANT? WELL, I THINK IT, WHETHER IT FALLS IN, YOU KNOW, A LOT OF THE APPLICATIONS WE'VE GOTTEN HAVE JUST CLEARLY NOT MET THE LEGAL, THE LEGAL PARAMETERS, FEASIBILITY FOR YES.
THAT'S THE WORD THAT WE COULD ACTUALLY FUND IT.
AND SO WHY MAKE THE APPLICANT COME TO THE BOARD SCHEDULE TIME TO COME TO THIS MEETING FOR US TO JUST TURN AROUND AND TELL THEM IT DOESN'T MEET THE REQUIREMENTS FOR WHAT WE CAN FUND IT MM-HMM
SO I THINK THAT WOULD BE THE ONLY SCREENING THAT WOULD HAPPEN ON STAFF SIDE THAT WOULD SAY, HEY, THIS DOESN'T MEET THE, AND THEN WE COULD ALL JUST BE NOTIFIED THAT THAT APPLICATION CAME THROUGH AND DIDN'T MEET THE STANDARD TO BE BROUGHT TO THE FULL BOARD.
AND THEN ANY OTHER APPLICATION THAT DID MEET THOSE STANDARDS WOULD JUST COME TO US FOR CONSIDERATION.
SO, SO IN MY MIND, WHAT I AM ENVISIONING IS, LET'S SAY WE SET UP A, A DEDICATED EMAIL ADDRESS,
[00:15:01]
YOU KNOW, THAT COULD BE UTILIZED FOR SUBMISSION OF, UH, APPLICATION FORMS AND MATERIALS THAT HAVE BEEN FILLED OUT, UH, THAT COMES TO STAFF.UH, AND, AND I CERTAINLY WOULD LOOK AT THEM, LET'S SAY THERE ARE, UH, FIVE, UH, APPLICATIONS THAT COME IN.
AND ONE OF THEM, WHEN I LOOK AT IT, I FIND THAT IT REQUESTS FUNDING THAT THE BOARD IS NOT EMPOWERED LEGALLY TO GRANT.
UH, AT THAT POINT, THE OTHER FOUR WOULD CERTAINLY COME TO THE BOARD AND BE PLACED ON AN AGENDA FOR THE BOARD TO DISCUSS THEM AND, AND, YOU KNOW, KICK AROUND THE MERITS AND SUCH.
BUT WOULD Y'ALL ALSO WANT TO BE SENT THAT FIFTH ONE TO SAY, HEY, HERE'S THIS FIFTH ONE, YOU KNOW, UH, IT'S NOT BEING PLACED ON YOUR AGENDA, BECAUSE I FIND THAT IT'S OUTSIDE THE LEGAL PARAMETERS, OR WOULD YOU GUYS NOT CARE TO SEE THAT ONE AT ALL? I, I WOULD SAY WE WANT, WE WOULD WANT KNOWLEDGE OF IT.
I THINK IT WOULD BE ONLY, YOU KNOW, UM, POLITE TO BE ABLE TO, UH, NOTIFY THE PERSON OR THE ENTITY THAT SENT THAT IN THAT THERE WAS AN ISSUE WITH THEIR REQUEST, SO THAT THEY'RE NOT JUST SITTING OUT THERE WAITING.
THAT, THAT, THAT WOULD BE A, A SEPARATE COMPONENT OF OUR, OUR PROCEDURE.
SO ACKNOWLEDGING AND LETTING THEM KNOW THAT IT FALLS OUTSIDE THE PARAMETERS.
AND, AND, AND I WOULD THINK, AND, AND AGAIN, NOT TRYING TO FIND MORE THINGS FOR YOU TO DO
UH, YOU, YOU'RE SAYING THAT THE RESPONSE BACK TO THAT FIFTH APPLICATION OR MM-HMM
UH, WHOSE APPLICATION I FOUND TO BE OUTSIDE LEGAL PARAMETERS, YOU WOULD WANT THAT, UH, RESPONSE TO COME FROM THE BOARD OR FROM STAFF, FROM, FROM THE BOARD, I THINK IS APPROPRIATE BECAUSE IT'S BEING SUBMITTED TO THE BOARD.
AND WE APPRECIATE YOUR YES, SIR.
YOUR REVIEW AND YOUR ADVISEMENT AS FAR AS, YOU KNOW, THE LEGALITY OF OKAY.
US BEING ABLE TO PROVIDE THAT.
WELL THEN IF THAT, IF THAT'S THE CASE, THEN, THEN SHOULD WE GO AHEAD AND JUST PLAN ON A PROCEDURE THAT WOULD ENVISION THAT FIFTH APPLICATION COMING TO THE BOARD ANYWAY, AND THEN YOU GUYS CAN MAKE THE DECISION RE REGARDING WHAT THAT RESPONSE OUGHT TO STATE AND WHO ON THE BOARD'S GONNA ASSIGN, IT'S GONNA BE THE BOARD PRESIDENT? I MEAN, IS IT GONNA BE SOMETHING THAT Y'ALL, SO, SO BASICALLY IT'S ALMOST LIKE YOU GUYS WILL TAKE UP EVERY SINGLE APPLICATION AND THEN AS A BOARD DECIDE WHAT THE RESPONSE IS GOING TO BE, AND THEN AF CAN DRAFT DRAFT IT UP.
AND LET'S SAY THAT THE BOARD PRESIDENT IS THE DESIGNATED SIGNATORY FOR THAT COMMUNICATION.
IS, IS, IS THAT WHAT I'M KIND OF HEARING IN TERMS OF A DRAFT PROCEDURE? YEAH, IT SEEMS, IT SEEMS APPROPRIATE TO ME SINCE THE APPLICATION IS BEING MADE, IT CERTAINLY TO THE WAR.
IT IS Y'ALL'S PREROGATIVE AS TO WHAT PGE YOU WANT, BUT WE VERY MUCH, UH, APPRECIATE YOUR OPINIONS ABOUT THESE AND, AND YOUR, YOUR JUDGMENT ON WHETHER IT'S APPROPRIATE OR NOT FOR US TO CONSIDER IT.
UM, ONE OF THE THINGS, I DON'T KNOW IF WE WANT TO TRY TO INCLUDE THIS SOMEHOW, BUT ONE OF THE THINGS THAT I'VE NOTICED FROM THE OUTSIDE LOOKING IN IN THE PAST HAS BEEN, UM, ENTITIES THAT HAVE COME BEFORE THE BOARD REQUESTING A GRANT WITH, UH, NO BID TO BUY, TO MAKE A PURCHASE WITH NO BIDS, NO SPECS.
AND YOU KNOW, I, I CAN'T IN ALL GOOD CONSCIENCE, YOU KNOW, EVEN CONSIDER AN APPROVAL UNLESS, UH, YOU KNOW, ALL THOSE, UH, REQUIREMENTS ARE MET.
I MEAN, I I'VE EVEN SEEN ONE GRANT APPLICANT, UH, WHEN ASKED, UH, YOU KNOW, EXACTLY WHAT WERE THEY GONNA PURCHASE, GET ON HIS PHONE, ON THE INTERNET IN THE MEETING, AND TRY TO PULL UP SOMETHING SIMILAR TO WHAT THEY WERE LOOKING AT PURCHASING.
SO I DON'T KNOW IF THAT TAKES PLACE AFTER THE APPLICATION'S UP FOR CONSIDERATION OR YOU TRY TO GET THAT KIND OF INFORMATION, UH, YOU KNOW, INTO THE APPLICATION AS A BOARD REQUIREMENT.
[00:20:01]
WITH THE, THE SENTIMENT THAT, UH, IF THE BOARD IS LOOKING AT GRANTING, UH, FUNDING OF TAX DOLLARS, WE CERTAINLY WANT THE BEST DEAL, UH, TO BE OBTAINED BY, YOU KNOW, BY THAT, UH, GRANTEE.UM, BUT IN TERMS OF LIKE GETTING BIDS OR QUOTES, YOU KNOW, THAT APPLIES NOT JUST TO THE PURCHASE OF GOODS.
IT CAN ALSO APPLY TO, YOU KNOW, SERVICES, SERVICES, YOU KNOW, AS WELL.
AND SO LIKE, LIKE PAINTING OR THAT TYPE OF THING.
AND, AND SO I I, IS IT SOMETHING THAT YOU WOULD TRY TO CAPTURE AS REQUIRED COMPONENTS IN THE APPLICATION MATERIALS? OR IS IT SOMETHING THAT GETS DELVED INTO, IN FRONT OF THE FULL BOARD WHEN THE BOARD IS CONSIDERING THAT APPLICATION? RIGHT.
I, THAT'S WHY I SAY IT'S, IT'S A QUESTION, YOU KNOW.
UH, IT DOES SAY IN THE APPLICATION IT MIGHT BE HARD TO COVER, UH, YOU KNOW, ALL, YOU KNOW, INSTANCES, BUT DEFINITELY THE BOARD NEEDS SUPPORTING DOCUMENTATION, UH, WHATEVER THAT MIGHT BE, UH, FOR THE GRANT APPLICATION.
AND IF THE BOARD DOESN'T FEEL LIKE, YOU KNOW, THE BOARD HAS RECEIVED ENOUGH, UH, INFORMATION IN THE REQUEST FORM MATERIALS, UH, SUBMITTED, DENIES THE REQUEST, YOU KNOW, THERE'S NO RULE THAT THAT SAYS THAT THEY CAN'T COME BACK FOR THE NEXT MEETING AND MAKE THAT REQUEST AGAIN AND, AND, AND HAVE ADDITIONAL MATERIALS.
SO IT'S, IT'S NOT LIKE JUST A ONE BITE OF THE APPLE.
IN THE, UM, IN THE APPLICATION IT SAYS, EXPLAIN IN DETAIL HOW THE LOAN OR GRANT FUNDS WOULD BE SPENT, AND IN PARENTHESES IT SAYS, PROVIDE A DETAILED BUDGET.
IF POSSIBLE, PERHAPS WE COULD ADD, PROVIDE A DETAILED BUDGET AND TWO TO THREE YEAH, YEAH.
QUOTES AND QUOTES FOR THE SERVICES OR MATERIALS YOU'RE LOOKING TO PURCHASE.
UH, YES, MA'AM, WE CAN DO THAT.
SO DO WE NEED A MOTION TO MAKE THAT CHANGE TO THE APPLICATION THEN? UH, NO.
WHAT I ENVISION IS I WILL, UM, WORK ON A DRAFT PROCEDURE AND ALSO THAT, THAT CHANGE TO THE APPLICATION FORM.
THE ONLY VOTE THAT WE'LL NEED FROM THE BOARD IS THE FINAL APPROVAL.
YOU KNOW, AT, AT, AT THE END OF THAT, I, I THINK I'VE HEARD, UH, ENOUGH DIRECTION FROM THIS DISCUSSION TO PROCEED.
THAT SETTLES SEVEN A THEN, UNLESS THERE'S ANY MORE COMMENTS OR CAN I MAKE A STATEMENT THAT CHARLES WAS JUST TALKING ABOUT ROBERT'S RULES? IS HE ABLE TO MAKE A STATEMENT? UH, IT IS UP TO THE CHAIR.
CHARLES SUMAN, 27 0 5 JAMESTOWN DRIVE, DICKINSON.
I REPRESENT THE FESTIVAL OF LIGHTS TONIGHT.
OTHER ORGANIZATIONS, WHEN WE'VE MADE APPLICATIONS, AND WHEN I SAW THIS ON THE AGENDA FOR DISCUSSION, I'M NOT SURE WHAT THE, IF THERE WAS A PROCEDURE WITH THE OTHER BOARD.
UH, AS FAR AS SUBMITTING THE APPLICATIONS, AND I UNDERSTAND WHAT Y'ALL HAVE BEEN TALKING ABOUT, Y'ALL NEED TO COME UP WITH YOUR INTERNAL PROCEDURE.
BUT ONCE THAT'S DONE, CAN A REVISION BE MADE TO THE APPLICATION AT THE BOTTOM, AT THE TOP, WHEREVER IT WOULD BE APPROPRIATE TO FILE THE APPLICATION WITH THE FOLLOWING AND AN EMAIL ADDRESS IF IT'S A CITY SECRETARY OR IF IT'S A CITY ATTORNEY OR THE ASSISTANT CITY, UH, MANAGER SOMEWHERE WHERE WE KNOW, BECAUSE THAT'S ALWAYS BEEN A QUESTION, AND I'VE ASKED IT ALMOST EVERY, OH, WHETHER IT'S BEEN RECEIVED.
WHEN YOU, WHEN ARE YOU TALKING ABOUT WHEN YOU TURN THE APPLICATION, WHETHER IT'S BEEN RECEIVED, YOU TURN THAT OCCASION BECAUSE I'VE BROUGHT 'EM UP HERE, PHYSICALLY HANDED THEM TO SOMEBODY.
I USED TO SUBMIT 'EM ELECTRONICALLY TO, UH, MR. SIMPSON AND I NEVER GOT ANY RESPONSE KIND OF CONFIRMATION THAT THEY RECEIVED IT WELL, THAT THEY WERE RECEIVED INTO THE SYSTEM OR NOT.
SO I'M JUST ASKING FROM THE APPLICANT'S STANDPOINT IF, IF SOMETHING CAN BE PUT ON THERE SO WE KNOW WHERE IT NEEDS TO GO BACK TO MR. ERMAN.
I THINK IF I UNDERSTAND MR. DOME CORRECTLY, UM, HE'S PROBABLY GOING TO, WE'RE GONNA CREATE AN EMAIL ADDRESS.
IT'LL HAVE A FEW RECIPIENTS IN THE CITY MANAGER'S OFFICE TO PROBABLY CITY MANAGER, MYSELF, ANYBODY THAT, THAT IT WANTS TO ADD TO THAT.
WE'LL CHECK IT AND THEN WE WILL RESPOND.
HEYO WAS RECEIVED AND FORWARDED AND I THINK THAT, THAT, THAT WOULD MOST DEFINITELY, THAT WAS ALL I WANTED.
I THINK THAT MR. DUN ON THAT, SO, WE'LL, I'LL, I'LL LET YOU KNOW ONCE IT, UH, ONCE HE DOES THAT.
THANK YOU VERY MUCH FOR YOUR TIME.
[00:25:01]
COMMENTS.THAT'S WHAT WE DID WITH THE HUGHES ROAD PROJECT.
ALRIGHT, ANY OTHER COMMENTS? OKAY.
SEVEN B CONSIDERATION AND POPS POSSIBLE ACTION TO APPROVE THE PROFESSIONAL SERVICE CONSULTING AGREEMENT WITH HMWK CONSULTING.
AND ACTUALLY, MADAM CHAIR, IF WE CAN, UH, HAVE A REQUEST TO MOVE CONSIDERATION OF THIS ITEM AFTER CLOSED SESSION, UH, WE'RE GOING TO ASK THAT THERE BE A, UH, CLOSED SESSION TO DISCUSS A CONSULTATION WITH ATTORNEY.
'CAUSE WE WILL BE TALKING ABOUT SOME, UM, KIND OF STATUTORY BASIS FOR THE, THE DMD AND AND, AND THINGS LIKE THAT.
DO WE NEED A MOTION TO DO THAT? UH, IF YOU WANNA BE TECHNICAL ABOUT IT, YOU CAN HAVE A MOTION TO SUSPEND THE RULES AND A SECOND AND A VOTE.
OR YOU CAN, AS THE CHAIR CAN JUST SIMPLY MOVE IT, UH, TO, UH, YOU AFTER ITEM.
WE'LL DO, WE'LL JUST MOVE IT TO THE AFTER THE CLOSED SESSION.
[7.C Consideration and possible action to approve a funding request from Stella’s II, LLC.]
CONSIDERATION AND POSSIBLE ACTION TO APPROVE, APPROVE A FUNDING REQUEST FROM STELLAS TO LLC.UH, GOOD EVENING, MEMBERS OF THE BOARD.
MY NAME IS VIJAY MISRA AND I'M HERE ON BEHALF OF DICKINSON PLAZA, LLC.
TOGETHER WITH STELLA'S TWO LLC, WE ARE SEEKING $130,000 LOAN TO RENOVATE AND REFRESH THE FORMER LITTLE MEXICO SPACE AT DICKINSON PLAZA IN PREPARATION FOR STELLA'S FRESH BRUNCH.
TO MOVE IN, TO KICK THINGS OFF, I'D LIKE TO SHOW A BRIEF VIDEO FEATURING STELLA'S THRIVING LAND RESTAURANT TEXAS, AN ITALIAN RESTAURANT.
I WANTED TO START SOMETHING I A PANCAKES.
IT STARTED OFF AS A PANCAKE OF THE SPECIAL, BUT THEY WERE SO POPULAR RIGHT NOW, FARMHOUSE LIKE HASH BROWN WITH CHICKEN.
EVERY FEW MONTHS WE GO BREAKFAST FACE PAIN, MORE POPULAR THAN ANY OTHER FAMILY MEMBERS.
SO WE GET A HEADING TO A RESTAURANT IS GETTING YEAH.
[00:30:15]
WELL THAT WAS AN INFORMATIVE VI VIDEO AND HOPEFULLY GAVE Y'ALL A TRUE SENSE AND EVEN A TASTE OF THE STELLA'S EXPERIENCE.I WISH I COULD DO BREAKFAST FOR DINNER RIGHT NOW, BECAUSE WATCHING THAT VIDEO MADE ME REALLY HUNGRY.
WE'RE VERY EXCITED THAT STELLA'S FRESH BRUNCH.
A SUCCESSFUL LAND RESTAURANT HAS SIGNED A LEASE TO OPEN ITS SECOND LOCATION IN DICKINSON PLAZA.
STELLA'S WILL BE THE FIRST AND ONLY PLACE IN DICKINSON, FOCUSED EXCLUSIVELY ON BREAKFAST AND BRUNCH.
AL HOSPITAL HOSPITALITY CURRENTLY OPERATES THREE SUCCESSFUL PIER LAND RESTAURANTS, STELLA'S FRESH BRUNCH, TAGLIA FRESH ITALIAN, AND PORT FRESH MEDITERRANEAN.
EACH LOCATION MAINTAINS A STRONG REPUTATION AND LOYAL FOLLOWING.
UH, WITH THAT, I'D LIKE TO RE UH, INTRODUCE SOME OF THE RAVENAL FAMILY THAT'S HERE TODAY.
THE TWO OWNERS ARE HERE, RANDY AND HIS DAUGHTER SHERRY.
SHE'S THE ONE THAT WAS IN THE VIDEO.
WHY STELLA'S? STELLA'S FRESH BRUNCH IS WELL REGARDED FOR ITS WARM HOSPITALITY, FRESH INGREDIENTS, AND INNOVATIVE BRUNCH MENU.
MY FAMILY AND I HAVE EATEN THERE MANY TIMES OVER THE PAST YEARS.
IT'S OUR FAVORITE BRUNCH PLACE AND WE'VE BEEN TO MANY AND HASH.
FIRST WATCH, SNOOZE, TOASTED YOLK, ET CETERA.
FROM PERSONAL EXPERIENCE, I CAN TELL YOU THEIR FOOD AND SERVICE ARE BOTH GREAT AT THE PIER LAND LOCATION, WAIT TIMES FOR BRUNCH OFTEN EXCEED 45 MINUTES AND GUESTS RARELY, RARELY LEAVE DESPITE BEING TOLD THE WAIT TIME.
IT'S THE ONLY A RESTAURANT IN THE AREA WITH A CONSISTENT WAIT TIME AND LIMITED PARKING MAKING DICKINSON PLAZA IDEAL WITH ITS LARGER SPACE AND AMPLE PARKING.
PIER LANDS LOCATION MAINTAINS A FOUR AND A HALF STAR AVERAGE RATING ACROSS MANY REVIEW PLATFORMS. THE BRAND'S STRONG SUCCESS MAKES IT IDEALLY SUITED TO FILL DICKINSON'S BRUNCH GAP.
WHY NOW? AFTER HURRICANE HARVEY DICKINSON LOST OVER A DOZEN LOCAL RESTAURANTS IMPACTING SALES TAX AND LOCAL DINING.
MORE RECENTLY, HOWEVER, WE LOST LITTLE MEXICO IN DICKINSON PLAZA SHOWING THAT THE LOCAL DINING SCENE IS STILL STRUGGLING TO RECOVER.
AND IN THE MEANTIME, THE CITY ISN'T GENERATING ANY TAX REVENUE FROM THIS EMPTY RESTAURANT.
STELLA'S WILL RESTORE VIBRANCY, ATTRACT DAYTIME VISITORS, AND ENHANCE THE CITY'S IMAGE ALONG THE GULF FREEWAY.
THE PROJECT EMBODIES COMMUNITY REVITALIZATION AND SUSTAINABLE ECONOMIC DEVELOPMENT, STRENGTHENING DICKINSON'S LONG-TERM FUTURE.
THE INVESTMENT, WHAT WE PLAN ON DOING THERE IS, UH, RAISING THE FASCIA, DOING AN UPLIFT TO IT, AND, UH, THE BUDGET ON THAT IS $130,000.
IN ADDITION TO THAT, ON THE INSIDE WE PLAN ON ADDING A RESTROOM, DOING NEW LIGHTING AND PAINT, AND TO THE PATIO LANDSCAPE AND, AND PARKING LOT.
WE PLAN ON REFRESHING ALL THAT.
AND THE PRICES, UH, THAT WE HAVE ON THAT ARE, ARE $50,000.
IN ADDITION TO THE $50,000 IN THIS CATEGORY, ANY COST EXCEEDING THE BUDGETED $180,000 FOR THIS PROJECT WILL BE COVERED BY DICKINSON PLAZA, LLC.
UH, SO THE FUNDING REQUEST, UH, FROM THE DMD HERE TONIGHT IS FOR $130,000.
THIS PROJECT IS CONTINGENT UPON DM D'S SUPPORT BECAUSE WITHOUT LOAN APPROVAL, THE EXTERIOR RENOVATION AND THEREFORE STELLA'S OPENING IN DICKINSON CANNOT PROCEED.
WE UNDERSTAND THAT GATOR'S CANTINA WAS APPROVED, WAS APPROVED FOR RENOVATION FUNDING LAST YEAR, BUT DIDN'T MOVE FORWARD WITH IT.
WE'RE REQUESTING THOSE UNUSED FUNDS NOW TO HELP MAKE STELLA'S OPENING IN DICKINSON A REALITY.
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HERE'S SOME BEFORE AND AFTER PICTURES.THE CURRENT VENUES ON THE LEFT AND ON THE RIGHT WE HAVE A CONCEPTUAL RENDERING OF THE IMPROVED VENUE.
HOW DICKINSON WILL BENEFIT FROM THIS NEW BUSINESS.
STELLA'S WILL CREATE JOBS AND STRENGTHEN THE LOCAL WORKFORCE.
STELLA'S WILL INCREASE SALES AND PROPERTY TAX REVENUE FOR THE CITY, AND THOSE DOLLARS CAN BE REINVESTED INTO CITY SERVICES AND IMPROVEMENTS.
STELLA'S WILL ENHANCE LOCAL AMENITIES AND DINING OPTIONS.
STELLA'S WILL BE AN ATTRACTION OF NEW RESIDENTS, VISITORS, AND FUTURE BUSINESSES.
STELLA'S WILL PROVIDE LONG-TERM ECONOMIC VITALITY AND DIVERSIFICATION.
UH, I THINK THERE'S SOMETHING WRONG WITH THIS SLIDE.
UH, THE NUMBERS ARE NOT SHOWING UP ON THE GRAPH, IT'S JUST
SO LET'S GET INTO THE NITTY GRITTY WITH THE NUMBERS NOW.
UM, THE FIRST THING THAT THE FIRST, UH, BENEFIT TO THE GONNA COME IN A VALOREM TAXES.
WE ESTIMATE THIS PROJECT TO INCREASE THE APPRAISAL DISTRICT'S VALUE OF THE PROPERTY BY $250,000.
THAT WILL GENERATE ADDITIONAL PROPERTY TAXES FOR THE CITY IN THE AMOUNT OF ABOUT $920.
THE BIG BOOST IS GONNA COME IN SALES TAX, UH, IN THEIR PEER LAND LOCATION.
STELLA'S IS DOING ABOUT $2.2 MILLION PER YEAR IN GROSS SALES.
HOWEVER, TO USE A CONSERVATIVE NUMBER FOR DICKINSON, WE'LL USE 1.635 MILLION IN TAXABLE SALES.
BY USING THIS NUMBER, WE COME UP, UH, WITH THE SALES, UH, REVENUE FOR THE CITY IN THE AMOUNT OF $32,700.
AND THAT'S BASED ON A CITY SALES TAX RATE OF 2%, WHICH THE DMD DOES GET PART OF THAT NUMBER AS WELL.
UH, IN ADDITION, AFTER PEOPLE EAT AT STELLA'S, THEY'LL GO TO OTHER PLACES IN THE CENTER, FOR EXAMPLE, BOOT BARN AND DOLLAR TREE.
AND THE BENEFITS TO THIS SYNERGY ARE UNMEASURABLE.
UH, THE THIRD BENEFIT TO THE CITY IS GONNA BE THE EMPLOYMENT GROWTH.
STELLA'S PLANS ON EMPLOYING 35 PEOPLE JUST IN THE DICKINSON LOCATION ALONE.
SO TO COME UP WITH THE TOTAL RETURN, WE'RE TALKING ABOUT $33,620 ANNUALLY TO THE CITY, WHICH, UH, RESULTS IN LESS THAN A FOUR YEAR BREAK, EVEN ON $130,000 LOAN WITH STRONG UPSIDE POTENTIAL FOR THE FOLLOWING REASONS, THE DICKINSON LOCATION IS LARGER THAN PIER LANDS AND DRIVE-BY TRAFFIC ON THE GULF FREEWAY IS MUCH GREATER THAN IT IS ON DIXIE FARM ROAD.
THEREFORE, THE DICKINSON LOCATION'S REVENUE IS VERY LIKELY TO BE HIGHER THAN PEER LAND'S REVENUE.
AFTER THE FOUR YEAR BREAK EVEN TIMEFRAME, THE CITY WILL CONTINUE TO MAKE MONEY FROM THE INVESTMENT LONG INTO THE FUTURE.
UH, THE INFORMATION THAT'S ON THE APPLICATION SHOWS A DIFFERENT BREAK EVEN POINT.
I BELIEVE MATT JUST PASSED OUT A REVISED, UH, SHEET FOR THAT APPLICATION RIGHT BEFORE THE MEETING TO ALL THE BOARD MEMBERS, WHICH SHOULD SHOW IT FOUR YEARS OR LESS, WHICH IS WHAT WE DISCUSSED, UH, ON THIS SLIDE.
COMMUNITY IMPACT STELLA'S WILL PROVIDE THE DICKINSON CITIZENS WITH A NEW DISTINCTIVE DINING OPTION THAT ENCOURAGES LOCAL SPENDING AND SOCIAL CONNECTION.
STELLA'S WILL DRAW VISITORS FROM SURROUNDING CITIES AND BEYOND FURTHER BOOSTING SALES ACTIVITY.
THE CITY UNDERSTANDS THE NEED TO KEEP ITS RESIDENTS SPENDING HERE AT HOME, RATHER THAN IN THE SURROUNDING CITIES, WHILE ALSO BRINGING IN NEW VISITORS TO ENJOY DICKINSON'S BUSINESSES IS AS MENTIONED IN THE VIDEO.
MANY CRUISERS AND BEACH GOERS DRIVING FROM HOUSTON TO GALVESTON STOP AT THE PIER LAND LOCATION, EVEN THOUGH IT'S OUT
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OF THEIR WAY.JUST IMAGINE THE IMPACT STELLAS WILL HAVE HERE IN DICKINSON WHEN IT'S RIGHT ON THEIR ROUTE.
UH, IN ADDITION, STELLA'S WILL ENHANCE CURB APPEAL AND CIVIC IMAGE ALONG THE GULF FREEWAY.
AND STELLA'S WILL GENERATE ENOUGH ONGOING REVENUE TO PAY FOR FIRST RESPONDERS, UTILITIES, INFRASTRUCTURE, AND ROAD MAINTENANCE THAT WILL SERVE IT FOR YEARS TO COME.
VISION ALIGNMENT STELLA'S EMBODIES THE DMDS MISSION THAT IS STIMULATING LOCAL BUSINESS AND COMMUNITY VITALITY WITH THOUGHTFUL DESIGN, QUALITY, FOOD, AND PROVEN MANAGEMENT.
THIS PROJECT BRINGS BOTH MEASURABLE ECONOMIC GROWTH AND RENEWED COMMUNITY PRIDE TO DICKINSON.
UH, I'D LIKE TO EMPHASIZE THAT THE LOAN WILL BE BACKED BY GUARANTEES FROM BOTH OF THESE TWO ENTITIES FURTHER STRENGTHENING THE REPAYMENT SECURITY.
SO HERE'S THE CONTACT INFORMATION FOR MYSELF WITH DICKINSON PLAZA, AND THERE'S THE CONTACT INFORMATION FOR RANDY ELLA'S TWO.
UH, AT THIS POINT I'D LIKE TO INVITE RANDY AND HIS DAUGHTER SHERRY TO SPEAK ABOUT WHY THEY SELECTED DICKINSON, THEIR VISION FOR SUCCESS, AND ANY ADDITIONAL THOUGHTS THEY'D LIKE TO SHARE.
AFTER THEY'RE DONE, WE CAN ANSWER ANY QUESTIONS Y'ALL MAY HAVE.
THANK YOU BOARD FOR YOUR TIME.
I'M SHERRY, AS YOU HEARD, AND THIS IS MY FATHER RANDY.
UM, THANK YOU FOR THIS OPPORTUNITY TO BE HERE TONIGHT AND GET TO SEE ALL OF YOU.
I WILL JUST SPEAK REALLY QUICKLY ABOUT WHY AT DICKINSON, WE HAVE THIS VIDEO THAT YOU WATCHED WAS FILMED BEFORE.
I GIVE BIRTH TO MY SON A WEEK BEFORE AND HE'S 15 MONTHS OLD NOW.
SO THAT WAS STUFF I WAS SAYING 15 MONTHS AGO.
WE HAVE PEOPLE COME WITH THEIR SUITCASES ALL THE TIME GOING TO AND FROM CRUISES, AND WE HAVE CUSTOMERS THAT COME EVERY WEEK THAT ARE FROM THIS AREA, FROM DICKINSON, TEXAS CITY LEAGUE CITY THAT DRIVE THE 20 MINUTES TO OUR PEARLAND LOCATION.
SO I'M MORE THAN CONFIDENT THAT THIS LOCATION WILL BRING THOSE PEOPLE AND MANY, MANY MORE PEOPLE.
UM, ALSO THIS LOCATION IS ABOUT TWICE THE SIZE OF OUR PARA LAND LOCATION.
SO IF HE'S USING THOSE NUMBERS AND HE'S USING LOWER NUMBERS ON THE NUMBERS THAT WE'RE DOING RIGHT NOW IN OURAND LOCATION, I HAVE, UH, THE CONFIDENCE THAT THIS LOCATION WILL BRING IN MUCH MORE SALES, TAX REVENUE AND, UM, REVENUE FROM LABOR IN THE CITY AND GIVE MANY MORE JOBS.
UM, A LITTLE BIT ABOUT HOW THIS ALL STARTED.
I SAID IN THE VIDEO, UM, MY UNCLE HAS RESTAURANTS AND I WANTED TO OPEN RESTAURANTS AND I ALWAYS THOUGHT, OH, I WANNA BE LIKE PAPA'S.
AND SO I HAVE THE THREE AND UM, IT'S A LOT EASIER TO GO WITH THE CONCEPT THAT I'VE ALREADY MADE TO EXPAND IT.
AND THIS IS THE CONCEPT THAT EVERYONE KEEPS ASKING ME TO EXPAND.
I'VE HAD OFFERS FROM THE WOODLANDS, FROM FRIENDSWOOD BEFORE TO MOVE THE, UH, TO OPEN RESTAURANTS THERE.
BUT I REALLY FEEL LIKE THIS OPPORTUNITY IS THE BEST OPPORTUNITY FOR US AND FOR THE COMMUNITY.
UM, AND THEN AFTER I OPENED TAGLIA TO OPEN NEED MEET THAT GOAL, I NEEDED A PARTNER BECAUSE I COULDN'T OPEN ALL THESE RESTAURANTS BY MYSELF.
AND SO I SOLD PART OF MY BUSINESS TO MY FATHER AND HE'S HELPED ME GROW IT TO FOUR LOCATIONS.
NOW WITH THIS ONE, DO YOU WANNA SAY ANYTHING? AFTER PANDEMIC WE OPENED 19, UH, 2019.
I SAW THAT SHE DID VERY WELL SAY, YOU KNOW WHAT? I NEED A PIECE OF THIS.
SO I BOUGHT A PIECE OF THE BUSINESS, SO NOW I'M HELPING HER.
AND THAT IS WHAT WE'RE DOING MOSTLY.
THANK YOU FOR THE OPPORTUNITY.
WE'LL STAY UP HERE FOR ANY QUESTIONS.
BOARD MEMBERS, DO YOU HAVE ANY QUESTIONS? I DO.
FIRST OF ALL, WE'RE WE, UH, LEMME MAKE SURE MY MICS ON.
WE'RE EXCITED TO HAVE YOU HERE AND WELCOME.
UM, THE, ON THE APPLICATION, UM, MR. UH, MISRA, ARE YOU THE APPLICANT OR IS STELLA'S THE APPLICANT? UH, WE'RE BOTH, SORRY.
WE'RE BOTH GONNA BE, UH, GUARANTEEING THE LOAN.
SO YOU'RE ASKING FOR A, UH, A LOAN.
IS THAT NOT WHAT WAS PRESENTED WOULD BE REPAIR REPAYABLE, THEY'D REPAY THE LOAN, CORRECT.
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NOT ASKING FOR A GRANT.YEAH, THERE WEREN'T ANY, I HAVEN'T SEEN ANY TERMS OF INTEREST OR ANYTHING LIKE THAT.
UH, I THINK THAT WOULD BE UP FOR US TO DECIDE AND THEN HAVE THE CITY ATTORNEY.
WELL, IT, IT WOULD BE, AND I THINK WHAT'S GOING ON IS, UH, THEY'RE GOING OFF OF THE, UH, THE LOAN, THE FORGIVABLE LOAN THAT THE PREVIOUS BOARD HAD APPROVED FOR THE MONTEREY HOUSE CANTINA, YOU KNOW, THAT, THAT, THAT BUSINESS.
SO THERE WAS A, A LOAN THAT WAS GRANTED THERE.
UH, IT DID NOT HAVE ANY INTEREST PAID UNLESS THE LOAN WAS DEFAULTED ON.
THERE WERE MILESTONES IN TERMS OF PERFORMANCE, UH, THAT AS THE APPLICANT WOULD MEET THOSE MILESTONES, THEY WOULD EARN FORGIVENESS KIND OF A CHUNK AT A TIME OF THE LOAN PRINCIPLE.
SO, AND IF THEY FAIL TO MEET ANY OF THE MILESTONES, THEN THE BALANCE WOULD BECOME, UH, IMMEDIATELY DUE.
AND THEN AT THAT POINT YOU'D HAVE INTEREST START ACCRUING.
SO IS IT TRUE THAT, UH, YOU TRIED TO GET THE, UH, LESSEE AT MONTEREY TO SUBLET TO ANOTHER, UH, RESTAURANT SO THAT, UH, YOU COULD BENEFIT FROM THE 120,000 GRANT THAT THEY HAD RECEIVED? WELL, IT'S NOT ME THAT'S BENEFITING IT ALL.
UH, COULD YOU REPEAT THE QUESTION PLEASE? OKAY.
SO MADE REFERENCE TO THE 120, YOU MADE REFERENCE TO THE $120,000 GRANT THAT WAS, UH, 130,000 LOAN.
OUR LOANABLE LOAN, FORGIVABLE LOAN LOAN THAT WAS, WAS GRANTED TO THE, UH, PREVIOUS LESSEE OF THE PROPERTY, WHICH WAS THE MONTEREY HOUSE PROPERTY, RIGHT? YES.
IS IT TRUE THAT YOU TRIED TO GET THAT LESSEE TO SUBLET TO A DIFFERENT RESTAURANT SO THAT YOU COULD RETAIN THAT, UH, FORGIVABLE LOAN? WHAT I $120,000 LOAN? WHAT I ASKED HER IF SHE WANTED TO DO WAS MOVE GATORS TO THIS LOCATION, THAT WAY SHE COULD KEEP THE $120,000 LOAN AND SHE DIDN'T WANNA MOVE.
SO YOU ARE THE, UH, THE OWNER OF THE, UH, SHOPPING CENTER, RIGHT? THE, THE OWNER OF THE SHOPPING CENTER IS DICKINSON PLAZA, LLC.
IS THAT YOU? I REPRESENT DICKINSON PLAZA, LLC.
SO YOU, YOU HAVE A BOARD, ARE YOU LIKE THE, THE PRESIDENT OR CEO OR I I'M THE MANAGER OF DICKINSON PLAZA, LLC.
WHO OWNS IT? THERE'S, THERE'S MEMBERS OF, OF, OF THE LLC THAT, THAT ARE THE OWNERS.
SO YOU'RE ONE OF THE OWNERS? YES, SIR.
DO YOU HAVE A LEASE THAT'S CURRENTLY IN EFFECT WITH STELLAS? YES.
AND I WAS A LITTLE BIT CONFUSED BECAUSE YOU MENTIONED THE WORD CONTINGENT OR CONTINGENCY.
IS THERE A CONTINGENCY IN THAT LEASE AGREEMENT? YES, SIR.
FOR WHAT? FOR, UH, GETTING THIS RENOVATION DONE.
THEY HAVE AN OUT IN THE LEASE THAT IF THE RENOVATION DOESN'T GET DONE, THEY DON'T HAVE TO OCCUPY THE SPACE OR GO FORWARD WITH THE LEASE.
AND WHY WOULDN'T YOU AS THE LESSOR, UM, PAY FOR THAT? I, I AM PUTTING SKIN INTO THE GAME, SIR.
I'M, I'M JUST, UH, REQUESTING, WELL, I HEARD $50,000, NOT 130 OR 180.
YOUR SKIN IN THE GAME IS 50,000.
WELL, IT DEPENDS WHAT THE, YOU KNOW, TOTAL COST OF THE PROJECT IS.
IF IT GOES OVER ONE, UH, ANYTHING OVER ONE 30, I'M BEARING THAT.
SO THE 50,000 FOR THE OTHER IMPROVEMENTS, AND LET'S SAY THE UPLIFT FACADE COSTS MORE THAN ONE 30, I'M BEARING THAT AS WELL.
WELL, I'M JUST CURIOUS AS, AS TO, UH, LIKE THE GYM THAT MOVED IN THERE.
DID, UH, DID THEY PUT THE, UH, THE BILL FOR A BILL, THE BILL FOR A BUILD OUT ON THAT PROPERTY, OR DID YOU UH, IT WAS NOT DONE FULLY BY EITHER PARTY.
SO BOTH PARTIES PARTICIPATED IN FOOTING THAT BILL.
HOW LONG HAS YOUR GROUP OWNED THAT PROPERTY? UH, THREE TO FOUR YEARS.
THREE TO FOUR YOU SAID? THREE TO FOUR YEARS, YES, MA'AM.
IS IT TRUE THAT THE, THE PREVIOUS OWNER RECEIVED $1.2 MILLION FROM TDOT FOR A FIVE FOOT EASEMENT AROUND THE PERIMETER OF THAT PROPERTY? I, I DON'T KNOW, SIR.
I, I DO KNOW THAT HE DID SELL PROPERTY TO TXDOT.
I DON'T KNOW THE AMOUNT, BUT THAT WAS BEFORE WE GOT INVOLVED WITH THE PROPERTY.
THAT WAS BEFORE YOU, YOU PURCHASED THE PROPERTY? YES, SIR.
I, I DON'T KNOW THE AMOUNT, BUT I DO
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KNOW HE DID SELL LAND TO TECH STOCK.SO HAVE YOU EVER DONE A DEAL ON THAT PROPERTY WHERE WHEREBY THE, UH, THE LESSEE PAID FOR, UH, RENOVATIONS, UH, IN RETURN FOR A BREAK ON RENT FOR A PERIOD OF TIME? SO YOU'RE SAYING THAT THE TENANT PAYS, UH, THE IMPROVEMENTS AND THEN THEY GET A BREAK ON RENT? YEAH.
HAVE I EVER DONE A DEAL LIKE THAT? YEAH.
AND WHY WOULDN'T THAT APPLY TO, UH, THIS SITUATION? THIS IS A BIGGER DOLLAR AMOUNT AND, UH, WE'D REALLY LIKE TO GET STELLA'S IN BECAUSE I THINK IT'S GOOD FOR THE COMMUNITY AND THEY FEEL THAT THEY'RE GONNA BE SUCCESSFUL HERE AS WELL.
I JUST, I'M, I'M CURIOUS AS TO WHY TAXPAYERS ARE, ARE BEING ASKED TO, UH, TO FUND IT WHEN, UH, YOU KNOW, IT SEEMS THAT, THAT YOU AS, AS THE, THE LANDLORD AND THE, THE OWNER, YOU KNOW, HAVE THE MEANS TO, UH, ATTRACT THIS BUSINESS AND, AND, AND MAKE IT A, A SUCCESS ON YOUR OWN.
WELL, WE, WE'D HAVE THE MEANS TO GET IT STARTED, BUT I'D LIKE TO GET ACROSS THE FINISH LINE AND I'M ASKING FOR SOME HELP FROM THE CITY, AND I'M NOT ASKING FOR A GRANT.
SO THIS IS NOT THE TAXPAYER'S MONEY THAT'S JUST BEING THROWN AWAY.
IT WILL BE, UH, IN THE FORM OF A LOAN BASED ON THE TERMS THAT THE ATTORNEY, UH, WAS TALKING ABOUT JUST A FEW MINUTES AGO OR THIS, OR SOME OTHER TERMS. SO HAVE RENOVATIONS ALREADY STARTED TO THE FACILITY? NO, SIR.
YOU HAVEN'T DONE ANY WORK ON THE INTERIOR? NO.
WELL, SO IT, IT WILL BE, WELL IT WOULD BE STRUCTURED AS A FORGIVABLE LOAN, BUT THE LOAN REPAYMENT IS NOT BEING REPAID WITH MONEY.
OR UNLESS YOU ARE THINKING IT'S GONNA BE YOU'RE GONNA PAY THE MONEY BACK.
NO, I'M THINKING LIKE YOU'RE THINKING, RIGHT.
SO IT'S STRUCTURED AS A FORGIVABLE LOAN.
WE'RE, BUT I MEAN, BUT REALLY IN ACTUALITY IT'S MORE LIKE A GRANT THAN IT IS A LOAN.
WELL, I DON'T, I HAVE TO MEET CERTAIN REQUIREMENTS.
IT'S, WE COULD DO IT THAT WAY OR I COULD DO IT AS A GRANT, UH, STRUCTURE, AS A GRANT AGREEMENT, AND THEN I WOULD HAVE TO BUILD IN CLAWBACK PROVISIONS IN THE EVENT THAT YOU DON'T MEET THE PARAMETERS WITHIN THE GRANT.
BUT THEN I'D HAVE TO LOOK TO YOU TO SAY, WELL, YOU DIDN'T MEET THIS AND SO I HAVE TO COME OUT TO YOU TO CLAW IT BACK.
IT'S MUCH MORE STRAIGHTFORWARD FOR ME TO CALL IT A FORGIVABLE LOAN BECAUSE THEN IT GIVES THE IMPRESSION THAT YOU GUYS UNDERSTAND IT'S A LOAN, YOU HAVE TO REPAY THE MONEY IF YOU DON'T DO THESE THINGS.
BUT REALLY, IF YOU THINK ABOUT IT, IT IS MORE LIKE A GRANT THAN IT IS A TRUE LOAN.
'CAUSE YOU'RE NOT PAYING BACK THE MONEY WITH MONEY.
SO, JUST, JUST A CLARIFICATION, RIGHT, THAT'S IF THEY MEET THE REQUIREMENTS, SET FORTH CORRECT.
IN THE AGREEMENT AND, AND, AND THAT, AND IT'S VERY KEY WHAT THOSE MILESTONES WOULD BE.
I CERTAINLY HAVEN'T HAD ANY DISCUSSIONS, UH, WITH THE APPLICANT REGARDING WHAT THOSE MILES MILESTONES? WELL, WE HAVEN'T SEEN ANYTHING, UH, WOULD BE, I SAW HIS, IN HIS, UH, PRESENTATION, UH, SOME STATEMENTS REGARDING HOW MUCH, UH, INCREASE IN PROPERTY TAX.
YOU KNOW, THERE WOULD BE HOW MUCH, UH, ANTICIPATED, UH, SALES TAX WOULD BE.
UH, ALSO THE, THE NOTION THAT IT WOULD GENERATE, I DON'T KNOW, 32 ISH JOBS.
I MEAN, THOSE ARE THREE THINGS.
IS THAT FULL-TIME EQUIVALENT OR IS THAT, UH, UH, I WOULD HAVE TO ASK RANDY AND SHERRY THAT, IS THAT FTE? SO 35 FULL-TIME RIGHT NOW WE HAVE 28 IN OUR LOCATION, SO WE WOULD THINK 35 IN THIS ONE.
'CAUSE IT'S BIGGER, MAYBE MORE, BUT A CONSERVATIVE ESTIMATE IS 35.
WE, WE DON'T, WE PROBABLY IN THIS LOCATION IN PEARLAND, WE HAVE THREE OR FOUR EMPLOYEES THAT ARE PART-TIME.
IT'S GONNA BE A BOON TO THE CITY.
I I THINK THE, THE CITIZENS OF DICKINSON ARE GONNA LOVE IT.
BECAUSE THERE'S, THERE'S NO OTHER BURN SPOT HERE IN THE CITY.
HOW MUCH, HOW MUCH IN HOW MUCH, UH, HAVE YOU SPENT IN THE TIME YOU'VE OWNED THAT PROPERTY ON IMPROVEMENTS TO IT? I DON'T KNOW OFF THE TOP OF MY HEAD, SIR, BUT I CAN GET YOU THAT INFORMATION.
I MEAN, FROM, FROM, FROM A STAND A DRIVE-BY STANDPOINT, I DON'T REALLY SEE ANYTHING OTHER THAN NEW TENANTS MOVING IN AND OUT AND SIGN EXCHANGE AND SOME PAINT HERE AND THERE, BUT IT'S NOT CLEAR WHO'S PAYING FOR THAT, WHETHER IT'S YOU OR THE, THE TENANT MOVING IN OR, YOU KNOW, UM, RIGHT, RIGHT.
I MEAN, IF YOU LOOK AT THE PROPERTY NOW, TO ME, YOU OUGHT TO BE ABLE TO TELL ME OFF THE TOP OF YOUR HEAD A GENERAL AMOUNT OF IMPROVEMENTS,
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UH, EXPENDITURE YOU'VE MADE IN THE, THE TIME YOU'VE HAD.ARE, ARE YOU TALKING ABOUT EXTERIOR ONLY OR INCLUDING TENANT IMPROVEMENTS? I'M TALKING ABOUT MAINTAINING THE PROPERTY AND UPGRADING THE PROPERTY.
SO INSIDE AND OUTSIDE OR SOLELY EXTERIOR? EITHER.
ON, ON THE OUTSIDE, WE'VE PROBABLY SPENT AT LEAST A MILLION DOLLARS.
AND IF YOU INCLUDE TENANT IMPROVEMENTS, WE'VE SPENT OVER $2 MILLION.
SO ABOUT 500 A YEAR? NO, IT, IT DOESN'T BREAK DOWN PER YEAR, BUT I MEAN, I MEAN, IF YOU GO BY AN AVERAGE, THEN YES, THAT'S CORRECT.
BUT THAT'S NOT HOW THE MONEY GETS SPENT.
UH, WHEN THERE'S A PROBLEM, YOU SPEND A CHUNK OF MONEY AT ONE TIME.
AND WHEN THERE'S NO PROBLEMS, UH, YOU DON'T HAVE TO SPEND AS MUCH AT ONE TIME.
WOULD YOU SAY THAT'S PRE PREDOMINANTLY, UH, ROOF REPAIRS OR WHAT, WHAT, WHAT'S THE, UH, SOME OF THAT IS DUE TO ROOF REPAIRS.
WE HAD TO DO QUITE A BIT OF ROOF REPAIRS OVER PLANET FITNESS BEFORE THEY MOVED IN.
DO YOU PAY FOR GARBAGE SERVICE? NO, SIR.
HAVE YOU EVER PAID FOR GARBAGE SERVICE? NO, SIR.
UH, DO YOU, DO YOU MEAN THE DUMPSTERS THAT THE TENANTS HAVE? YEAH, NO.
THO THOSE, THE, THE DUMPSTERS ARE A RESPONSIBILITY OF THE TENANT AND IT'S ALWAYS BEEN THAT WAY.
EVEN PRIOR TO US GETTING INVOLVED WITH THE PROPERTY.
UH, ANY OTHER QUESTIONS FROM ANY OF THE BOARD MEMBERS LIKE MR. DIETZ? I WANTED TO SAY THAT WE'RE EXCITED THAT STELLA'S IS HERE.
I HAVE A COUPLE OF QUESTIONS FOR COUNSEL.
SO WHAT WE HAVE BEFORE US, DOES IT SHOW AT ALL THAT IT'S TIED TO THE FORGIVABLE LOAN FROM BEFORE? IT'S, UH, I'LL LET YOU ANSWER THAT.
AND THEN, UH, AND MY QUESTION IS, IS ALL THAT THE D UH, DOES THE DMD ONLY DO FORGIVABLE LOANS OR DO WE ALSO DO ACTUAL LOANS? DO ACTUAL LOANS? YEAH, AN ACTUAL LOAN.
UH, WELL, I'VE ONLY BEEN Y'ALL'S LEGAL COUNSEL FOR GOING ON TWO YEARS.
I HAVE NEVER SEEN, UH, THIS BODY DO AN ACTUAL LOAN.
I'VE SEEN A LOT OF GRANTS AND WHENEVER, UH, I GOT INVOLVED AND KIND OF STARTED GETTING MORE INVOLVED IN THE STRUCTURING OF IT, UM, MY IDEA HAS BEEN TO MAKE IT INTO A FORGIVABLE LOAN VERSUS JUST A STRAIGHT OUT GRANT WITH MILESTONES TO MAKE SURE THAT THERE IS A PERFORMANCE.
BUT NO, UH, TO ANSWER YOUR QUESTION, I'VE NOT SEEN A TRUE TRADITIONAL LOAN.
'CAUSE TO ME THAT'S WHAT THIS PAPERWORK REFLECTS IS A, IS A TRUE LOAN.
UH, WHICH PAPERWORK IS THAT, SIR? THE APPLICATION MATERIALS OR THE YES, SIR.
IT IS CIRCLED LOAN ON THE YEAH, SURE.
APPLICATION FOR A LOAN? YEAH, YEAH.
I WAS JUST WONDERING,
BUT IN TALKING TO SOME OF THE STAFF, UH, MULTIPLE STAFF MEMBERS, UH, IT WAS DETERMINED THAT THE BOARD WOULD HAVE, UM, GREATER CONFIDENCE IF THERE WAS TWO PEOPLE, YOU KNOW, SIGNING ON THE GUARANTEE VERSUS JUST ONE ENTITY SIGNING ON THE GUARANTEE.
SO THAT'S ANOTHER REASON WAS TO GIVE THE BOARD GREATER CONFIDENCE IN THE STRENGTH OF THE GUARANTEE.
AND, AND HOW WOULD YOU LOOK TO SECURE, LIKE IN YOUR MIND, WHAT WOULD YOU, UH, THINK THE SECURITY WOULD BE? THE GUARANTEE WOULD TAKE THE FORM OF, ASIDE FROM A SIGNATURE, I DON'T KNOW WHAT THE CITY REQUIRES, BUT I'M OPEN.
OH, I CAN THINK OF ALL KINDS OF STUFF I'D REQUIRE, BUT I'M NOT SURE YOU WANT TO, I MEAN, A LIEN ON THE PROPERTY THAT, THAT'S FINE.
I MEAN, THAT'S, THAT'S TO ME SOMETHING THAT WOULD BE LIKE TRUE SECURITY, RIGHT? TO SECURE THE, UH, THE CITY'S INTEREST.
WELL, I'D LIKE TO SAY THAT I, UM, REACHED OUT TO SOME, I HAVE QUITE A FEW PEOPLE THAT I'M ACQUAINTED WITH THAT LIVE IN PEARL
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LAND, AND THEY HAVE, UH, EXPRESSED THAT IT IS AN EXTREMELY POPULAR RESTAURANT, MORE POPULAR THAN THE OTHER TWO THAT YOU DO OWN.UM, AND THAT ON SATURDAYS, IF YOU'RE NOT THERE, YOU'RE NOT GETTING IN
AND SO, UM, THAT, THAT ABSOLUTELY SOUNDS LIKE A GREAT PROBLEM TO HAVE HERE IN DICKINSON FOR A RESTAURANT, IN MY OPINION.
AND I THINK, UM, YOU'RE PROBABLY RIGHT WITH THE NUMBERS THAT YOU'RE LOOKING TO HIT AND, AND OUTPACING PEARLAND BECAUSE OF THE I 45 FRONTAGE PLACEMENT, AND, UM, VERY SOON HERE THAT INTERSECTION IMPROVEMENTS WILL BE COMPLETED AND THE TRAFFIC COUNTS WILL PROBABLY, I THINK THE BUSINESSES THAT ARE IN THERE NOW, WHEN THE PROJECT WAS, UM, STARTED WITH TECH STOP FOR THE EXPANSION OF I 45 AND REDOING OF THAT, THEY LOST 50% OF TRAFFIC TO THOSE BUSINESSES.
SO IF YOU'RE BASING IT ON WHAT YOU'RE GONNA SEE FOR TRAFFIC NOW, YOU'RE PROBABLY GONNA SEE 50% MORE WHEN, WHEN YOU ACTUALLY DO OPEN THE RESTAURANT AND THE INTERSECTION OPENS AS WELL.
DR. FULLER, YOU HAVE ANYTHING TO SAY? NO, JUST, JUST ONE THING, UH, JUST CURIOUS.
YOU SPEAK WITH CONFIDENCE AND IT SEEMS, IT SOUNDS LIKE THE, UM, BUSINESS, THE PRODUCT THAT YOU PROVIDE TO PEOPLE IN PEARLAND IS APPARENTLY EXCELLENT, UH, EXCELLENT ENOUGH TO BUILD A GOOD FOLLOWING.
UM, IF, IF I REMEMBER CORRECTLY IN THE APPLICATION, IT, IT SOUNDS LIKE IT'S CONTINGENT UPON THE DMD APPROVING THIS, THIS LOAN, UH, SUGGESTING THAT IF IT'S NOT APPROVED, THEN YOU'RE GONNA GO AWAY.
IS THAT, DID I READ THAT WRONG? NO, YOU'RE CORRECT.
UH, SO COULD WE HAVE THEM ANSWER THAT? OH, YEAH, SURE,
I MEAN, WHEN YOU, UH, THIS IS THE FOURTH ONE.
THE OTHER THREE, THE AMOUNT OF INITIAL INVESTMENT IT TAKES TO GET A RESTAURANT GOING IS SEVERAL HUNDREDS OF THOUSAND DOLLARS.
AND SO WE TOLD, UM, WE MET VIJAY THROUGH, UH, HE'S A CUSTOMER OF OURS, AND HE ASKED US WOULD WE BE INTERESTED IN DICKINSON? WE'VE HAD MONEY OFFERS.
AND AT FIRST, I'LL BE HONEST WITH YOU, I WAS LIKE, OH, THE LOCATION, THE OUTSIDE THE APPEARANCE, LIKE, I'M NOT SURE WE TALKED ABOUT IT.
AND UM, BASICALLY IN THE LEASE IT'S WRITTEN THAT IF THE OUTWARD APPEARANCE OF THE BUILDING DOES NOT IMPROVE, THAT WE HAVE THE RIGHT TO BREAK THE LEASE AND IT'S IN THE LEASE.
AND THAT'S YOUR INTENT? UH, YES SIR.
I DO, I'M INVESTING MAYBE HALF A MILLION DOLLARS INTO THIS PROJECT ON THE INSIDE.
I DON'T WANNA HAVE TO INVEST HALF A MILLION ON THE OUTSIDE.
IF HE DOES NOT IMPROVE THE OUTSIDE, THEN YES, WE WILL NOT BE MOVING FORWARD WITH THE STARS.
BUT DO YOU HAVE A, A LEASE IN EFFECT? YES, THERE'S A LEASE IN EFFECT RIGHT NOW.
ANY OTHER QUESTIONS? THANK YOU.
WELL, UH, I'D ENTERTAIN A MOTION THEN IF AT THIS TIME I WANT TO TALK ABOUT BUDGET.
WELL, I THINK THAT WOULD ALL COME IN THE DETAILS OF THE AGREEMENT.
UH, YES MA'AM, IT WOULD, UNLESS MR. DIETZ IS TALKING ABOUT, I'M TALKING ABOUT WHAT WE HAVE BUDGETED FOR SURE.
GRANTS, AND MAYBE SARAH CAN SPEAK TO THAT, BUT, UH, IT IS TRUE THAT, THAT MY NOTES SAY $40,000, BUT THAT THERE WAS PREVIOUSLY THE 130,000 THAT WAS GRANTED AS A FORGIVABLE LOAN, BUT THAT'S CLEARLY NOT GOING TO BE UTILIZED.
AND SO I'M NOT SURE HOW THAT'S BEEN ACCOUNTED FOR IN, IN, IN Y'ALL'S, UH, NUMBERS.
WELL, IT DIDN'T MAKE IT INTO THE BUDGET.
WHAT I'M LOOKING AT, CORRECT ME IF I'M WRONG, UH, SARAH, DO WE HAVE FOUR, DID WE BUDGET $40,000 FOR SPONSORSHIPS? AND IS THAT GRANTS, IS THAT WHAT WE'RE TALKING ABOUT? YES, SIR.
IS THAT THE ONLY LINE ITEM WE HAVE FOR GRANTS? YES, SIR.
SO WE HAVE BUDGETED $40,000, WHICH OBVIOUSLY, YOU KNOW, EXCEEDS THIS APPLICATION, EXCEEDS THAT, EXCEEDS IT.
SO IF THE BOARD WANTED TO GRANT THIS FUNDING, I MEAN, IT WOULD JUST NEED TO DO A BUDGET AMENDMENT, YOU KNOW, MOVE SOME MONEY AROUND, YOU KNOW, AS AN OPTION.
UM, PROBABLY STATING THE OBVIOUS.
WHAT'S YOUR PLEASURE? WELL, SINCE PRIOR TO THE MAKING OF ANY MOTION, I, I WOULD SUGGEST
[01:05:01]
TO THE BOARD THAT, UH, SINCE WE ACTUALLY HAVE NOT HAD ANY DISCUSSION ON THE ACTUAL TERMS OF AN AGREEMENT.REALLY, I MEAN, THE PROOF IS IN THE PUDDING.
UH, I WOULD BE INTERESTED IN LEARNING, UH, HOW LONG OF A TERM, WHAT THE MILESTONES ARE, YOU KNOW, THOSE KINDS OF THINGS.
AND SO IF THE BOARD WISHES TO TAKE ACTION, UH, I WOULD SUGGEST, UH, RESPECTFULLY THAT IT BE JUST A MOTION TO DIRECT, UH, YOUR LEGAL COUNSEL TO COMMENCE NEGOTIATIONS, YOU KNOW, WITH THE APPLICANTS AND WORK TOWARDS, UH, THE PARAMETERS OF THE DEAL THAT WOULD SEE A FORGIVABLE LOAN IN THE AMOUNT OF $130,000 AND SEE WHAT IT IS IN TERMS OF, UH, MILESTONES AND SECURITY WE CAN, UH, WE CAN HAMMER OUT SO THAT ONCE THAT'S DONE, WE CAN TAKE THAT, UH, AGREEMENT DRAFT BACK TO THE BOARD FOR FINAL APPROVAL.
WELL, I, I, I'M ASSUMING WE STILL HAVE DISCUSSION.
UM, IT WOULD HAVE TO BE A VERY DETAILED, UM, AGREEMENT TO EVEN BE CONSIDERED BECAUSE I DON'T THINK THE BOARD HAS, UH, THIS BOARD HAS ESTABLISHED A HISTORY OF, UH, OF BEING ABLE TO GO BACK AND, UM, AND HAVE MEANINGFUL REPORTS ISSUED TO THEM TO VERIFY THE TERMS OF THOSE AGREEMENTS.
SO, AND, AND, UH, YOU KNOW, SO WHEN, WHEN I SAY, WHEN YOU SAY, YOU KNOW, DRAFT UP AN AGREEMENT, THERE NEEDS TO BE SPECIFIC LANGUAGE THAT ADDRESSES HOW OFTEN WHAT, UH, WHAT ITEMS ARE GONNA BE PART OF THE CLAWBACK, WHETHER IT BE SALES TAX GENERATED, WHETHER IT BE FULL-TIME EQUIVALENT JOBS, THOSE TYPE OF THINGS, AND HOW THAT'S GOING TO BE AUDITED AND REPORTED BACK TO THE BOARD.
UM, THERE ALSO WOULD NEED TO BE, AND, AND I'M NOT SAYING THIS JUST FOR THIS AGREEMENT, I'M TALKING IN GENERAL, YOU KNOW, FOR THIS BOARD, UH, BUT, UH,
SO THERE NEEDS TO BE LANGUAGE IN THERE THAT WE DON'T HAVE TO SUE IN ORDER TO CLAW BACK IF, UH, ONE OF OUR CLIENTS HAS NOT MET THE, UH, AGREEMENTS.
THE AGREEMENT WOULD CERTAINLY BE VERY DETAILED.
UM, I'M NOT SURE IF YOU'VE HAD A CHANCE TO SEE THE AGREEMENT THAT WE PUT TOGETHER FOR THE GAZ CANTINA AND, AND HOW THAT WAS DRAFTED.
YEAH, I THINK THAT WAS PRIOR TO MR. DETS COMING ON.
IT WAS, IT WAS PRIOR TO MR. DET, BUT I KNOW MR. DETS, LIKE DEL WAS INTO A LOT OF DOCUMENTATIONS.
I DON'T KNOW IF HE'S HAD A BENEFIT OF OF, OF LOOKING AT THAT, BUT CERTAINLY WE WOULD HAVE, WELL, THERE'S, UH, THERE'S A LOT OF THAT IN THIS APPLICATION, A LOT OF WHICH, A LOT OF THAT LANGUAGE FROM GATORS IS IN THERE.
THE APPLICATION FORM DOESN'T STAND FOR THE, UH, FOR THE AGREEMENT.
UH, AND SO, OH, YOU'RE TALKING ABOUT THE AGREEMENT ITSELF, RIGHT? CORRECT.
THE AGREEMENT ITSELF THAT WE, NO, I HAVEN'T SEEN THAT, THAT WE HAMMERED OUT WITH, UH, THE CANTINA AND THE MILESTONES THAT WE PUT IN THERE AND RIGHT.
SO, UH, AND IN, IN MY MIND, THE MILESTONES WOULD BE OBJECTIVE AND OBJECTIVELY KNOWABLE MILESTONES.
LIKE IF WE'RE TALKING ABOUT FTES, WE WOULD TAKE A LOOK AT, YOU KNOW, THE, THE LABOR REPORTS TO TEXAS FORCE COMMISSION WHEN THE TIME HAS BEEN, UH, AUDITED.
UH, THE GATORS AGREEMENT, NOT THE CANTINA AGREEMENT, THE GATORS AGREEMENT IS A DIFFERENT AGREEMENT.
OH, YOU'RE TALKING ABOUT, OKAY, SO I'M, I'M CONFUSED.
YOU'RE TALKING ABOUT THE, UH, THE CANTINA BEING THE MONTEREY HOUSE, CORRECT? CORRECT.
THAT'S THE ONE THAT I WORKED ON, THE GATORS AGREEMENT.
SO, SO ANOTHER QUESTION IS, WHY ISN'T THIS AN EDC PROJECT INSTEAD OF A DMD PROJECT? I DON'T KNOW THAT I CAN ANSWER THAT, BUT I WOULD TELL YOU THAT THE WAY THAT THE STATUTE IS SET UP TO CREATE THE DMD, I WILL TELL YOU THAT THE DMD, IF YOU READ THOSE PROVISIONS, READS MORE LIKE YOU GUYS ARE A SUPER EDC.
WE HAVE THE AUTHORITY TO DO IT.
I'M JUST WONDERING WHY HAVE, DID YOU GUYS GO TO EDC? NO.
ECONOMIC DEVELOPMENT? I HAVE NO ANSWER.
AND, AND ACTUALLY ALONG, UH, YOUR QUESTION REMINDS ME OF A QUESTION THAT I HAD WHEN, UH, THE, THE LADY WAS SPEAKING.
UH, YOU MENTIONED THAT YOU'VE OPENED FOUR RESTAURANTS IN PEARLAND? NO,
[01:10:01]
THREE.UH, SO PEARLAND HAS A VERY ACTIVE EDC.
DID YOU SEEK FUNDING FROM, UH, THE EDC FOR ANY OF THE THREE RESTAURANTS IN PEARL LAND? NO.
I WISH I DID 'CAUSE I PAID BACK A LOT OF MONEY, BUT NO, I DID NOT.
'CAUSE I, WELL, I USED TO BE LEGAL COUNSEL FOR THEM.
AND IT'S PROBABLY OKAY YOU DIDN'T ASK BECAUSE I DON'T THINK THEY WOULD'VE GRANTED IT.
THEY, I JUST LETTING YOU KNOW.
ANY FURTHER DISCRETION OR QUESTIONS.
WELL, YOU DON'T LIKE A NEGATIVE MOTION, RIGHT.
SO SOMEBODY ELSE IS GONNA HAVE TO MAKE
WE, WE MOVED A LOT OF MONEY AROUND YES.
AT OUR LAST MEETING AND I'M, I'M JUST NOT SURE WHAT'S AVAILABLE AT THIS POINT.
WELL, ACCORDING TO SARAH AND WHAT I HAVE IN, IN MY BUDGET MEETING NOTES, WE HAVE $40,000 AVAILABLE TOTAL.
WELL, GIVEN THAT, UH, ANY AGREEMENT THAT IS HAMMERED OUT WOULD NEED TO COME BACK TO THE BOARD FOR FINAL APPROVAL ANYWAY, UH, I WOULD RESPECTFULLY SUGGEST THAT BETWEEN NOW AND THAT POINT IN TIME, THAT NEXT MEETING, UH, THERE WOULD BE ENOUGH TIME FOR SARAH TO KINDA WORK OUT WHAT MONIES ARE AVAILABLE TO EVEN BE MOVED AROUND TO, TO FUND SUCH AN AGREEMENT.
YOU KNOW, SO I MEAN, WHAT I THINK STAFF IS LOOKING FOR IS JUST A MOTION TO, YOU KNOW, DIRECT, UH, THE DMDS ATTORNEY TO, AND NEGOTIATE AND, AND WORK ON A, UH, A, A PROPOSED A DRAFT, UH, INCENTIVE AGREEMENT.
SO I WOULD MOVE, YOU CAN JUST SAY, SO MOVE, I JUST STATED IT.
BECAUSE THAT'S A WHOLE LOT TO SAY.
SORRY, I'M A LAWYER, BUT I APPRECIATE THE POINT IS THAT YOU'LL BE ABLE TO RESEARCH THIS AND PUT INTO, UM, EASY TO FOLLOW FORM THAT, UH, WE CAN DELIBERATE UPON AND MAKE A FINAL DECISION UPON.
OUR NEXT MEETING AT THE NEXT MEETING, CORRECT.
DO I HEAR A SECOND? SECOND THAT? YEAH.
ANY DISCUSSION? ALL IN FAVOR SAY AYE.
[8. EXECUTIVE (CLOSED) SESSION(S)]
WE ARE ON TO ITEM EIGHT, TEXAS GOVERNMENT CODE SECTION 5 5 1 0.072 REAL PROPERTY DELIBERATIONS REGARDING THE PURCHASE EXCHANGE, LEASE OR VALUE OF REAL PROPERTY.UH, WE ALSO, UH, UH, GO INTO, OH, AND THE ITEM, UM, IT'S GONNA BE UNDER 5 5 1 0 7 1, CONSULTATION WITH ATTORNEY TO, UH, HAVE A DISCUSSION ON SEVEN ONE CONSULTATION WITH ATTORNEY, UM, FOR THE DELIBERATIONS REGARDING THE PURCHASE EXCHANGE, LEASE AND VALUE OF REAL PROPERTY.
CORRECT? AM I IN THE RIGHT PLACE? NO, IT'S JUST, IT'LL, THAT'S SEPARATE FROM THE REAL PROPERTY DISCUSSION.
IT'LL JUST BE A CONSULTATION WITH A ATTORNEY ON LEGAL MATTERS SO LONG AS YOU IDENTIFY THE, UH, THE SECTION OF TOMA.
UM, SO IT IS SEVEN SEVEN AND WE WILL ADJOURN INTO EXECUTIVE SESSION.
[9. ACTION ITEMS FROM EXECUTIVE (CLOSED) SESSION(S)]
THE TIME IS NOW EIGHT 30 AND WE ARE BACK FROM EXECUTIVE SESSION.MADAM CHAIR, THERE'S THE NO ACTION REQUESTED ON ITEM NINE A,
[7.B Consideration and possible action to approve Professional Services Consulting Agreement with HMWK Consulting.]
BUT, UH, WE WOULD LIKE TO REQUEST ACTION ON ITEM SEVEN B THAT HAD BEEN POSTPONED UNTIL, UH, THIS SECTION OF THE AGENDA.MOVE TO APPROVE THE, UH, RECOMMENDATION FOR ITEM SEVEN.
ANY DISCUSSION? ALL IN FAVOR SAY AYE.
[10. FUTURE AGENDA ITEMS]
RIGHT.UM, ANY, ANY FUTURE AGENDA ITEMS THAT ANYBODY WOULD LIKE TO SEE? WHEN IS THE NEXT MEETING? JANUARY.
SO IT WOULD BE THE THIRD THUR, SORRY, SECOND THURSDAY IN JANUARY AT 6:00 PM OKAY, GREAT.
ANYTHING YOU'D LIKE TO SEE ON THE AGENDA? ANYONE? UH, ACTUALLY LOOKING AT THE CALENDAR, I
[01:15:01]
DO SEE THAT I WILL BE, I, I'M PLANNING ON TAKING A VACATION TRIP, UM, DURING THAT TIME, SO I WOULD NOT BE AVAILABLE.SO IF THE BOARD, UH, WANTS ME THERE AT, AT THE MEETING, THEN IT WOULD, UH, ON A THURSDAY IT WOULD NEED TO BE LIKE THE 22ND OR THE 29TH.
SO THE FOURTH OR FIFTH THURSDAY OF JANUARY, I APOLOGIZE.
I WOULD SAY GO AHEAD AND HAVE THE MEETING AND IF, UH, THERE'S ANY, WELL, WE'RE GONNA HAVE THE, THE AGREEMENT, THE CONTRACT AGREEMENT FOR ASTELLAS.
SO I THINK YOU'D PROBABLY HAVE TO BE HERE.
IS IT FAIR FOR ME TO SAY THAT WE'LL PROBABLY HAVE THAT WORKED OUT WELL IN ADVANCE OF THAT MEETING THOUGH? UH, YES.
I WOULD ANTICIPATE THAT IT WOULD BE, AND THAT I, ONCE IT'S, UM, HAMMERED OUT, I WOULD CERTAINLY EMAIL IT TO THE ENTIRETY OF THE BOARD.
OF COURSE, YOU GUYS WOULD NOT BE ABLE TO DELIBERATE ABOUT IT, BUT YOU'D HAVE IT IN ADVANCE TO LOOK AT AND, UH, ASK ANY QUESTIONS AND SUCH.
BUT IF THERE IS DELIBERATION AT THE MEETING WHEN YOU CONSIDER APPROVAL OF IT, AND THAT DELIBERATION WOULD NEED MY INPUT AS TO, HEY, WHY WAS THIS TERM, YOU KNOW, STATED THIS WAY AS STRUCTURED THAT WAY, THEN I WOULD NOT BE THERE TO ANSWER THOSE QUESTIONS, MOVE THE MEETING.
CAN YOU, UM, MOVE THE MEETING? YEAH.
SO WE'RE SAYING YOU MEET BEFORE 22ND OR 29TH? THAT WOULD BE JANUARY 1ST.
CAN YOU MEET BEFORE THE EIGHTH? UH, I CAN MEET BEFORE THE EIGHTH IF IT IS IN DECEMBER.
OH, BUT NOT IN JANUARY? UH, NO, SIR.
AND THE EARLIEST IN JANUARY IS THE EARLIEST IN JANUARY IS NEW YEAR'S DAY, THE WEEK OF THE 19TH IF MEMORY SERVES.
SO THE 22ND OR THE 29TH, DOES ANYBODY HAVE A, WHAT'S THE PREFERENCE? THURSDAY? I'D PREFER THURSDAY THE 29TH.
WE, WE DON'T HAVE ANY OTHER PRESSING BUSINESS OTHER THAN, UH, DALLAS OR STELLA'S, WHATEVER IT'S MM-HMM.
NOT THAT I'M AWARE OF UNLESS SOMETHING POPS UP BEFORE THEN.
SO IS EVERYBODY AGREEABLE TO JANUARY 29TH? JANUARY 29TH.
UM, THEN I MOVE, WE ADJOURN OR LOOK FOR A MOTION FOR ADJOURNMENT,