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EVERYBODY, IT'S NINE O'CLOCK IN THE MORNING ON THURSDAY, MARCH 19TH, 2024.
AND I WILL CALL TO ORDER THE CITY COUNCIL OF AUSTIN, TEXAS WORK SESSION FOR THIS DAY, WE ARE MEETING IN THE CITY COUNCIL CHAMBERS IN AUSTIN CITY HALL, WHICH IS LOCATED AT 3 0 1 WEST SECOND STREET IN AUSTIN, TEXAS.
WE HAVE A QUORUM OF THE CITY COUNCIL PRESENT, AND SO WE WILL, UH, BEGIN THE WORK SESSION MEMBERS.
WHAT I THOUGHT WE WOULD DO IS ON THE BRIEFINGS, I'M TOLD THAT ITEM NUMBER B THREE IS A VERY SHORT BRIEFING.
UM, I'M TOLD THAT BY MS. HARDEN.
UH, SO, UH, WE'LL SEE HOW SHE DOES, UH, NOW THAT SHE'S TOLD ME THAT.
AND, UM, SO WHAT I THOUGHT I WOULD DO SO THAT, SO THAT STAFF ON THIS ITEM WOULD BE ABLE TO GO BACK AND DO OTHER THINGS THAT THEY MIGHT NEED TO DO, WE WOULD CALL UP B THREE FIRST AND THEN GO TO B ONE AND THEN B TWO.
[B3. CD-2023-0001 - Development assessment for a proposed planned unit development located at 500 and 510 South Congress Avenue, 105 West Riverside Drive, and 407 ½ Haywood Avenue - within the Lady Bird Lake and East Bouldin Creek Watersheds - Urban Watersheds. ]
THE FLOOR IS YOURS, WE HARDEN WITH THE PLANNING DEPARTMENT.I'M HERE TO PRESENT THIS DEVELOPMENT ASSESSMENT ITEM, CASE NUMBER CD 20 23 0 0 1.
THIS IS A BRIEFING ON A PROPOSED PLAN UNIT DEVELOPMENT OR P PUD LOCATED AT 505 10 SOUTH CONGRESS AVENUE, 1 0 5 WEST RIVERSIDE DRIVE IN 4 0 7 AND HALF HAYWOOD AVENUE.
AND SO, JUST AS A QUICK REMINDER TO COUNSEL, THE CITY'S LAND DEVELOPMENT CODE REQUIRES THAT PRIOR TO AN APPLICANT SUBMITTING A PUTT APPLICATION, THE APPLICANT IS REQUIRED TO DO WHAT WE CALL A DEVELOPMENT ASSESSMENT, WHICH IS ESSENTIALLY A DRY RUN OF WHAT THEY'RE PROPOSING TO SUBMIT.
STAFF OFFERS COMMENTS, AND COMMENTS COME FROM NUMEROUS CITY DEPARTMENTS, AND WE GIVE THEM BACK TO THE APPLICANT.
AND THEN WE GIVE A BRIEFING TO COUNCIL ON SOME OF THE OVERALL BIG PICTURE ITEMS IN REFERENCE TO WHAT THE APPLICANT IS GOING TO SUBMIT IN THEIR FUTURE PUT APPLICATION.
THIS IS THE TIME WHERE YOU PROVIDE FEEDBACK TO THAT PROPOSAL.
AS I STATED, THIS SITE IS LOCATED AT 505 10 SOUTH CONGRESS AVENUE, 1 0 5 WEST RIVERSIDE DRIVE, AND 4 0 7 AND A HALF HAYWOOD AVENUE.
THE SITE IS 6.0102 ACRES IN SIZE, AND CURRENTLY IS DEVELOPED WITH A TWO STORY OFFICE STRUCTURE, WHICH IS 1 0 5 RIVERSIDE DRIVE, A MULTIFAMILY USE SOUTH CONGRESS SQUARE APARTMENTS.
A RESTAURANT EGOS A FIVE STORY OFFICE BUILDING FIVE 10 SOUTH CONGRESS AVENUE.
AND THAT ARE, UH, AND THOSE ARE ZONED CS ONE NP AND CS ONE VNP.
IT IS DESIGNATED AS MIXED USE ON THE FEATURE AND LAND USE MAP FLU IN THE ING CREEK NEIGHBORHOOD PLAN THAT WAS ADOPTED IN MAY OF 2022.
THE PROPERTY IS LOCATED WITHIN THE LADY BURKE LAKE IN EAST BALDING CREEK WATERSHEDS, WHICH ARE CLASSIFIED AS URBAN WATERSHED AND IS PART OF THE SOUTH CENTRAL WATERFRONT DISTRICT.
THE PROPERTY IS LOCATED WITHIN THE BOUNDARIES OF THE SOUTH CENTRAL WATERFRONT VISION FRAMEWORK PLAN, WHICH THE LONG RANGE PLANNING DIVISION, THE PLANNING DEPARTMENT IS CURRENTLY IN THE PROCESS OF REVISING PER COUNCIL RESOLUTION.
AGAIN, THE APPLICANT IS PROPOSING PUD AND PEACE ZONING.
THE PROPOSED PROJECT WILL CONSIST OF A MIXED USE DEVELOPMENT OF APPROXIMATELY 800 RESIDENTIAL UNITS, A 225 KEY HOTEL, 200,000 SQUARE FEET OF OFFICE, 90,000 SQUARE FEET OF RETAIL USE, 30,000 SQUARE FEET OF RESTAURANT USE, AND A 25,000 SQUARE FOOT GROCERY STORE.
MUCH OF THE PARKING FOR THE DEVELOPMENT WILL BE ACHIEVED THROUGH BELOW GRADE PARKING STRUCTURES, AS THE MAJORITY OF THE SITE IS SEE US ONE, WHICH ALLOWS FOR 60 FEET IN HEIGHT.
THE CS ONE ZONING DISTRICT WOULD BE THE BASELINE ZONING DISTRICT FOR THE, SO ANY DEVELOPMENT OVER THE HEIGHT OF 60 FEET WOULD HAVE TO COMPLY WITH TIER THREE OF THE PUT ORDINANCE, WHICH ALLOW OUTLINES THE AFFORDABILITY REQUIREMENT.
THE APPLICANT IS REQUESTING 25 CO MODIFICATIONS, WHICH IS OUTLINED IN EXHIBIT F.
AND OF NOTE, THE APPLICANT IS REQUESTING A MAXIMUM HEIGHT OF 575 FEET AND A FLORIDA AREA RATIO REQUEST OF 6.1121, WHICH OF COURSE, THE EXISTING ZONING OF CS ONE DOES NOT ALLOW IN EXCHANGE FOR RECEIVING THE INCREASE IN ENTITLEMENTS OF HEIGHT, FAR AND OTHER MODIFICATIONS THE APPLICANT IS SEEKING.
SOME OF THE APPLICANT'S PROPOSED SUPERIOR SUPERIORITY ITEMS ARE AS FOLLOWS, PROVIDING FOR OPEN SPACE THAT IS 10% ABOVE THE MINIMUM REQUIREMENT, THAT WILL RESULT IN A MINIMUM OF 100 LINEAR FEET ALONG THE TRAIL ALONG EAST BOULDER CREEK TRAIL ENTRANCE TO THE DEVELOPMENT OF SOUTH CONGRESS AVENUE TO BRING USERS INTO THE DEVELOPMENT THROUGH OPEN SPACE AND ALONG THE RESTORED CREEK, A MINIMUM OF 1000 LINEAR FEET OF INTERNAL SIDEWALKS, A MINIMUM OF 300 LINEAR FEET OF BIKE PATHS, A MINIMUM OF 2000 SQUARE FEET OF RECREATIONAL COURTS AND PLAY SPACES.
A REDUCTION IN MAXIMUM PERMITTING IMPERVIOUS COVER BY 5%.
RAINWATER HARVESTING STORMWATER RUNOFF FROM IMPERVIOUS SERVICES THAT WILL BE DIRECTED TO LANDSCAPED AREAS
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EQUAL TO OR GREATER THAN THE REQUIRED LANDSCAPE AREA.5,000 SQUARE FEET OF COMMERCIAL SPACE TO BE PROVIDED FOR LOCAL BUSINESSES OR NONPROFITS FOR LEASE AT AN AFFORDABLE RATE FOR A PERIOD OF 25 YEARS.
AND AGAIN, THERE'S OTHER SUPPORT SUPERIORITY ITEMS LISTED ON PAGE TWO OF THE STAFF REPORTING YOUR BACKUP.
AND ALSO TO NOTE THAT THIS PROPERTY IS LOCATED NEAR THEIR FUTURE ORANGE AND BLUE LINE.
SO, COUNSEL, JUST TO NOTE THAT ONCE THIS BRIEFING GETS COMPLETE, THE APPLICANT MAY SUBMIT THEIR ACTUAL P APPLICATION.
IT WILL GO THROUGH THE USUAL PROCESS REVIEW BY MULTIPLE CITY DEPARTMENTS, REVIEW BY A MINIMUM OF THE ENVIRONMENTAL COMMISSION PLANNING COMMISSION, AND FINALLY, BACK TO COUNCIL.
AND THAT CONCLUDES MY PRESENTATION.
PLEASE FEEL FREE TO RELAY ANY COMMENTS AT THIS TIME.
MEMBERS, YOU GOT ANY QUESTIONS OR COMMENTS OF, OF MS. ARDEN, COUNCIL MEMBER CADRE? UM, I'LL RECOGNIZE YOU.
UH, COMMENTS AND THEN SOME QUESTIONS FOR THE APPLICANT.
UM, I THINK THAT DEVELOPMENT, UH, GIVES US AN IMMENSE OPPORTUNITY, UH, AT THE SOUTH CENTRAL WATERFRONT AREA.
IT LOOKS LIKE IT'S ALIGNING TO A LOT OF THE, THE VISION, UH, THAT'S BEEN LAID OUT WHEN IT COMES TO SUSTAINABILITY, INCLUSIVITY, UH, AND MULTI MODES OF, OF, OF, OF MOBILITY.
UH, BUT WE JUST WANNA MAKE SURE, UH, YOU KNOW, WE SHOULD REALLY MAKE SURE WE, WE GET A LOT OF THIS RIGHT.
IF THE APPLICANT'S IN THE ROOM, I CAN'T TELL IF THEY ARE, BUT IS THE APPLICANT THERE? YES, MS. HERE, SOMEBODY'S JUST VOLUNTEERING TO ASK ANSWER QUESTIONS.
WELL, I'M HAPPY TO ASK, UH, ASK QUESTION.
WHY DON'T YOU IDENTIFY YOURSELF FOR THE RECORD VOLUNTEERING TO ASK, UH, ANSWER QUESTIONS.
COUNCIL, FIRST QUESTIONS ON, UH, COUNCIL, COUNCIL MEMBER ON MOBILITY.
I, SO I GONNA, I'M GONNA ASK AGAIN, HELP IF THEY'VE LOCKED UP YET, BUT, UH, COULD, COULD, WHOEVER'S THERE, COULD THEY EXPAND MORE ON HOW THE PROPOSAL WOULD GO ABOVE AND BEYOND WHEN IT COMES TO MULTIMODAL MOBILITY? NOW, IDENTIFY YOURSELF,
I'M AN EXECUTIVE VICE PRESIDENT WITH THE RELATED COMPANIES.
COULD YOU REPEAT THE QUESTION? YEAH, I CAN REPEAT IT.
UH, COULD YOU JUST EXPAND MORE ON HOW THE PROPOSED, UH, THE PROPOSAL WOULD GO ABOVE AND BEYOND, UH, WHEN IT COMES TO MULTIMODAL MOBILITY? SO IN TERMS OF MULTIMODAL MOBILITY, UM, OBVIOUSLY THIS IS, THIS SITE IS DIRECTLY ADJACENT TO THE, THE RAIL LINE.
UH, SO THE, THE PROJECT CONNECT WOULD BE AN IMPORTANT PART OF THIS PROJECT.
IN ADDITION, THIS IS A, UH, AN SORT OF THE HEART OF SOUTH CONGRESS.
AND WHEN YOU'RE THINKING ABOUT EAST WEST, UH, TRAFFIC IN TERMS OF, UH, BIKE AND PEDESTRIAN, WE'RE ALSO PLANNING A BIKE PATH AND PEDESTRIAN PATH ALONG THE CREEK ON THE BOLDEN CREEK SIDE, UH, IN ADDITION TO BIKE, PET AND SCOOTER PATHS ALONG RIVERSIDE AND ALONG SOUTH CONGRESS.
AND THEN, UM, HOW HAVE CONVERSATIONS AROUND AFFORDABILITY BEEN WITH STAFF? WE CONTINUED TO DISCUSS, UM, BOTH WITH THE SOUTH CENTRAL WATERFRONT COMMITTEE AND, UH, AS IT RELATES TO THE PUD UH, ALTERNATIVES ON AFFORDABLE HOUSING.
AND THEN WHEN IT COMES TO, UH, COMMERCIAL RETAIL COMPONENT, UH, OR A VENUE, HAS THAT SOMETHING THAT'S BEEN, UH, CONSIDERED? UH, CAN YOU ELABORATE ON THAT QUESTION, PLEASE? YEAH, I, I WAS JUST, I WAS JUST ASKING IF YOU, IF YOU CONSIDERED ANY AFFORDABLE COMMERCIAL RETAIL COMPONENT OR A VENUE? UM, YOU KNOW, I THINK IT WOULD BE, IT WOULD HELP, UM, KEEP WHAT FUELS AUSTIN, YOU KNOW, JUST THE UNIQUENESS OF ALL THAT.
LIKE ON, ON SITE, I BELIEVE IN THE PUD FILING, UH, THERE'S AN ALLOCATION FOR, UH, AFFORDABLE RETAIL FOR MWB APPLICANTS.
AND THEN ARE THERE APARTMENTS ON SITE THAT, SORRY, THE APARTMENTS THAT ARE ON SITE, ARE THEY, ARE THEY CURRENTLY VACANT OR ARE THEY, ARE THEY OCCUPIED? THE APARTMENTS ON THE SITE ARE APPROXIMATELY 80% OCCUPIED.
AND THEN I, I ASSUME YOU GUYS HAVE HAD A CHANCE TO TALK TO THE, TO THE TENANTS? UH, WE HAVE THE, THE VAST MAJORITY OF THE TENANTS ARE, ARE NEW TENANTS, UH, POST, UH, ARE ACQUISITION OF THE PROPERTY.
UM, SO THOSE WERE, UH, THE QUESTIONS I HAD.
ANYBODY ELSE HAVE QUESTIONS? COUNCIL MEMBER RYAN ALTER THAT 800 RESIDENTIAL UNITS, THAT'S ALL OWNERSHIP OR, UH, NO.
A SMALL PORTION OF THEM WOULD BE FOR SALE AND THE VAST MAJORITY OF THEM WOULD BE FOR RENT.
ANY OTHER QUESTIONS OR COMMENTS? THANK YOU, SIR.
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ACTUALLY INVOLVED WITH THE PROJECT, YOU DID A GOOD JOB ANSWERING QUESTIONS.UM, ALL RIGHT, MS. HARDEN, YOU GOT ANYTHING MORE? ALL RIGHT, EVERYBODY.
SHE TOLD ME IT WAS GONNA BE THREE MINUTES, IT WAS 10, BUT THAT'S OKAY.
UM, WE WON'T BLAME COUNCIL MEMBER CADRE AT ALL FOR THAT.
UM, IT WILL ALL BE ON MS. HARDEN.
ANYBODY ELSE GOT ANYTHING ON ITEM B THREE? COUNCIL MEMBER CADRE, THANK YOU FOR YOUR QUESTIONS.
[B1. IH-35 cap and stitch project. ]
BACK TO ITEM NUMBER B ONE, AND I'LL RECOGNIZE MR. GOOD MORNING, MAYOR AND COUNCIL.ROBERT, GOOD ASSISTANT CITY MANAGER.
I'M GONNA DO A REAL BRIEF, UH, INTRO TO THIS JUST TO SET THE STAGE FOR, RICHARD'S GONNA REMIND YOU OF THE, THE CAP PROJECT.
WE'VE BEEN BEFORE COUNCIL IN NOVEMBER OF LAST YEAR.
HE'LL TALK ABOUT THE PROJECT COMPONENTS, THE COSTS, FUNDING DEADLINES, FUNDING OPTIONS, WHICH HAVE CHANGED BECAUSE OF OUR SUCCESSFUL $105 MILLION GRANT, UM, THAT WE RECEIVED FROM THE FEDERAL GOVERNMENT.
SO, WE'LL, WE'LL TALK ABOUT HOW THAT IMPACTS THE PROJECT, BUT MAINLY TODAY WE'RE HERE TO TALK ABOUT, CONSIDERING ON THURSDAY, YOU HAVE AN AGENDA ITEM TO CONSIDER A STATE INFRASTRUCTURE BANK LOAN APPLICATION.
WE HAD LOOKED AT THAT DEBT INSTRUMENT BEFORE, BUT WE HAD DISCARDED THAT MAINLY BECAUSE THE AMOUNT OF LOAN APPLICATIONS THAT HAVE BEEN GIVEN BY T RUNNING THE FIVE TO $10 MILLION RANGE.
THROUGH OUR CONVERSATIONS WITH TDO, THEY ENCOURAGED US TO THINK BEYOND THAT BOX, OUTSIDE THAT BOX AND PUSH THE ENVELOPE.
I WANTED TO MAKE SURE YOU THAT I SET EXPECTATIONS THIS WOULD, IF WE APPLY FOR 191 MILLION AS OUR RECOMMENDATION IS, IT'S FIVE TIMES THEIR NORMAL HIGHEST BID, UH, LOAN APPLICATION AWARD.
SO THEY WERE ENCOURAGING US TO STRETCH THE ENVELOPE.
WE'VE TAKEN THAT TO HEART AND WE'RE REALLY STRETCHING THE ENVELOPE.
SO THEY WANTED TO MAKE SURE YOU KNEW THE EXPECTATIONS.
THAT IS A VERY HIGH ASK, AND WE MAY NOT GET THAT NUMBER, BUT AGAIN, IF WE DON'T ASK FOR IT, WE WOULDN'T GET IT FOR SURE.
THE, THE STAFF TODAY WILL TELL YOU WHY THIS IS A GOOD DEBT INSTRUMENT FOR US AND WHY WE ENCOURAGE THE COUNCIL TO CONSIDER THIS ON YOUR THURSDAY AGENDA.
SO WITH THAT, I'M GONNA TURN OVER RICHARD AND HE'S GONNA RUN, REMIND YOU WHAT THE PROJECT IS ABOUT, AND THEN WE'LL GET TO KIM RIS.
WE'LL TALK ABOUT THE FUNDING OPTION AND STATE INFRASTRUCTURE BANK AND ASKING, UH, ANSWER ANY QUESTIONS YOU MAY HAVE, AND THEN I'LL TURN IT OVER TO RICHARD.
UH, GOOD MORNING, MAYOR AND COUNCIL.
RICHARD MENDOZA, DIRECTOR TRANSPORTATION AND PUBLIC WORKS.
I'M GONNA GIVE A QUICK OVERVIEW OF THE, UH, THE CAPTAIN STITCH PROJECT AND, UH, COVER SOME OF THE COST AND TIMELINES, AND THEN I'LL BE FOLLOWED BY DEPUTY CFO KIM VARS TO TALK ACTUALLY ABOUT THE, UH, THE MECHANICS OF THE STATE INFRASTRUCTURE BANK AND FUNDING SCENARIOS.
UH, SO THIS IS A REVIEW, BUT FOR OUR VIEWERS OUT THERE, UM, THE, UH, TXDOT IS LOWERING I 35, AND SO WE HAVE THIS OPPORTUNITY TO CAP OVER THE FREEWAY AND RECLAIM PROPERTY, AS WELL AS RECONNECT COMMUNITIES IN GREEN.
ON THIS MAP ARE DEPICTED THE CITY CAP AND STITCH LOCATIONS.
IN ORANGE DEPICTS THE UNIVERSITY OF TEXAS, UH, PLAN CAPS, WHICH ARE UNDER SEPARATE DISCUSSION BETWEEN UT AND TXDOT.
AND THEN ON THE FAR LOWER RIGHT YOU CAN SEE, UH, PURPLE, THAT'S DEPICTING THE HOLLY STITCH.
UH, YOU MAY RECALL THAT LAST DECEMBER, COUNSEL APPROVED US TO ENTER INTO AN ADVANCED FUNDING AGREEMENT WITH TEXDOT FOR THE 30% DESIGN OF THE CITY LOCATIONS.
OKAY, THE NEXT FOLLOWING SLIDES WILL COVER THE COST ESTIMATES AND TIMELINES FOR BUILDING THE CAPS.
BUT FOR EASE OF DISCUSSION, WE HAVE SEPARATED THEM INTO THREE DISTINCT PROJECT ELEMENTS, THE ROADWAY, THE TUNNEL CAP, AND THE AMENITIES.
THE ROADWAY ELEMENTS ARE NEEDED TO SUPPORT ANY FUTURE OVERHEAD CAPS, AND, UH, INCLUDE UPGRADED FOUNDATIONS WALLS.
THE LOWERED ROADWAY THEMSELVES HAS HAZARDOUS MATERIAL CATCHMENT CONCRETE COLUMNS TO SUPPORT THE DEBT CAP.
IT'S IMPORTANT TO NOTE THAT FUNDING THESE COMPONENTS ARE NEEDED TO PRESERVE OUR ABILITY TO CAP IN FUTURE AND FUTURE PROOF, UH, THESE IMPROVEMENTS, UH, IN THE FUTURE.
THE NEXT COMPONENT ARE THE TUNNEL ELEMENTS AND THE CAP OR LID ITSELF.
THESE CONSIST OF A TUNNEL SUPPORT BUILDING THAT IS LOCATED ON THE SURFACE, THE ACTUAL DECK CAP AND VENTILATION JET FANS.
AND THEN FINALLY, THE THIRD, UH, COMPONENT ARE THE AMENITIES, AND THESE ARE WHAT WE ACTUALLY WILL IMPROVE ON TOP OF THE DECKS.
AND EXAMPLES OF THESE COULD BE PARK SPACE, OPEN SPACE, OTHER, UH, LIGHT STRUCTURES SUCH AS RESTROOMS, PAVILIONS,
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TREES, PUBLIC ART, AND CULTURAL FACILITIES.SO WE'LL TALK ABOUT THE COST ESTIMATES, UH, I'M SORRY, ONE SLIDE OVER.
SO THESE ARE THE PROJECT COMPONENTS AND ARE ILLUSTRATED HERE, UH, AND COLOR CODED.
AND SO IN ROAD, THE IN BLUE, UH, WE DEPICT THE ROADWAY ELEMENTS.
THE TUNNEL AND CAP ELEMENTS ARE DEPICTED IN ORANGE, AND THEN THE AMENITIES ON TOP IN GREEN.
AND ALSO FOR YOUR REFERENCE, WE SHOW IN SOLID BLACK THE BASELINE T PROJECT WITH NO CAPS.
AND YOU CAN SEE THAT IN ORDER TO ACCOMMODATE CAPS, THOSE COLUMNS NEED TO BE, UH, SIGNIFICANTLY DEEPER AND WIDER.
THE ROADWAY ITSELF NEEDS TO BE LOWERED TO ACCOMMODATE THE CLEARANCE OF THE OVERHEAD, UH, JET FANS.
AND THOSE ROADWAY ELEMENTS, AGAIN, IN THE SHADED BLUE ARE WHAT THE CITY WOULD NEED TO, UH, COMMIT TO FUNDING BY THE END OF THIS YEAR IN ORDER TO PRESERVE OUR ABILITY TO CAP ALL OF THE LOCATIONS.
OKAY, NOW WE'LL TALK A LITTLE BIT ABOUT COST ESTIMATES AS WELL AS SOME TIMELINES.
SO THESE ARE THE COST ESTIMATES FOR THE C CAPS, AND WE'VE ALSO COLOR CODED THEM BY EACH COMPONENT AND EACH ELEMENT ON THE LEFT, THAT COLUMN ARE THE ACTUAL CAPS SECTIONS.
AND ACROSS THE TOP ARE THE COMPONENTS WITH DECISION POINTS NEEDED.
UH, THIS SECURED FUNDING LINE AT THE BOTTOM WAS RECENTLY UPDATED LAST WEEK, AS, AS YOU KNOW, WITH THE RECENT ANNOUNCEMENT OF THE AWARD, UH, TO THE CITY OF AUSTIN OF 105 MILLION NEIGHBORHOOD ACCESS AND EQUITY OUGH GRANT.
AND THAT LOCATION THAT WE APPLIED FOR WAS FROM CAESAR CHAVEZ TO FOURTH AVENUE.
AND SO THE REMAINING NEED, UH, FIRST FOR DESIGN, UH, IS $19 MILLION.
THIS WILL GET US TO A HUNDRED PERCENT DESIGN FOR ALL OF THE PROPOSED, UH, CAP AND STITCH LOCATIONS.
WE HAVE THE 15 MILLION SECURED AND PAID TO TDOT THAT YOU AUTHORIZED IN DECEMBER.
NEXT DECISION POINT IS DECEMBER 21ST.
AND SO THAT NUMBER 1 44, UH, IS REFLECTIVE OF THE 30 MILLION THAT WE ARE RECEIVING WITH THAT FEDERAL GRANT TO APPLY TO THE ROADWAY ELEMENTS FOR THE CAESAR CHAVEZ TO FOURTH.
AND SO THE REMAINING, UH, NEED AND COMMITMENT TO TXDOT IS $144 MILLION.
THAT DECISION IS NEEDED BY DECEMBER 24.
AND THEN FOR THE DEBT COST THEMSELVES, THIS, THESE ARE THE ACTUAL LIDS ON TOP.
UH, THE TXDOT DOES NOT NEED THE DECISION FOR THAT UNTIL 2026.
AND THAT REMAINING NEED ALSO HAS BEEN UPDATED LAST WEEK, UH, AND IS 249 MILLION FOR ALL THE DECK COSTS.
AND THEN I'VE ALSO INCLUDED SOME ESTIMATES FOR THE IMPROVEMENTS TO AMENITIES FOR BOTH DESIGN AND CONSTRUCTION.
SO THESE WOULD BE FOR THE IMPROVEMENTS THAT WE ACTUALLY, UH, WORK WITH OUR COMMUNITY AND DECIDE TO BUILD ON TOP OF THE CAP DECK, UH, STRUCTURES.
THIS IS THE SAME SLIDE, BUT WE'VE ADDED WHAT WE ESTIMATE COULD BE THE ANNUAL OPERATIONS AND MAINTENANCE COSTS, BOTH FOR THE STRUCTURAL ELEMENTS, WHICH TDO WILL REQUIRE US TO ENTER INTO A, UM, MUNICIPAL MAINTENANCE AGREEMENT TO MAINTAIN, AS WELL AS FOR POTENTIAL AMENITIES ON TOP.
THE STRUCTURES ESSENTIALLY ARE OUR RESPONSIBILITY FOR THOSE JET FANS, FOR THE FIRE SUPPRESSION SYSTEM AND FOR THE HAZARDOUS MATERIAL CATCHMENT BASIN, AS WELL AS THE TUNNEL SUPPORT BUILDING THE AMENITIES, OPERATIONS AND MAINTENANCE COSTS WOULD BE FOR ANY IMPROVEMENTS THAT WE PLACE ON TOP, ANY BUILDINGS, ANY LANDSCAPING, ANY PUBLIC, UH, PUBLIC SPACES.
AND THOSE WILL BE RECURRING ANNUALLY AFTER APPROXIMATELY 2032 WHEN TEXTILE IS FULLY COMPLETED, THE CAPEX CENTRAL PROJECT AND LOWER THE FREEWAY.
AND NOW WE'RE READY TO COME BUILD ON TOP SOME KEY TEXTILE DEADLINES, UH, TO SHARE.
OF COURSE, WE ALREADY REACHED THE DECEMBER 23RD FIRST DEADLINE FROM TXDOT TO COMMIT TO 30% DESIGN.
AND, UH, THAT DESIGN IS BEING INITIATED NOW WITH OUR STAFF AND TXDOT, UH, IN DECEMBER OF 2024.
THAT'S, THEY'LL NEED A A FA AND FUNDING FOR TO COMPLETE THAT DESIGN 200%, UH, FOR THOSE, UH, DESIGN ELEMENTS.
AND THEN OF THAT, UH, ALSO THE
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ROADWAY ELEMENTS FUNDING, THEY'LL NEED A COMMITMENT, BUT NOT CASH IN HAND BY DECEMBER FOR WHICH, UH, CAP LOCATIONS THAT WE INTEND TO MOVE FORWARD.AGAIN, OF THAT 174 MILLION SHOWN HERE, UH, WE RECENTLY SECURED 30 MILLION FROM, UH, US DEPARTMENT OF TRANSPORTATION WITH THAT NEIGHBORHOOD ACCESS EQUITIES GRANT.
AND THEN IN 2026 THINGS REALLY START ROLLING WITH THE PROJECT.
THEY'RE READY TO GO TO CONSTRUCTION.
UH, THE ROADWAY ELEMENTS, UH, ACTUAL PAYMENTS WILL HAVE TO BEGIN, UH, TO TXDOT AS EARLY AS, UH, 26 IN 2027.
UH, THAT'S THE DEADLINE FOR FINAL CHANGE ORDERS TO CONSTRUCT, UH, WHATEVER THE, OUR, OUR CITY DECIDES TO MOVE FORWARD WITH IN TERMS OF ROADWAY ELEMENTS AND CAP, UH, STRUCTURES.
AND THEY WILL DO THAT UNDER THEIR CONTRACT WITH A CHANGE ORDER.
AND 2032, IF WE STILL HAVE NOT, UH, IDENTIFIED FUNDING OR MADE THE DECISION, WE CAN STILL MOVE FORWARD WITH THE DECISION TO CAP.
THEY WOULD SECURE AN ADDITIONAL, UH, OR THEY WOULD DO AN ADDITIONAL CONTRACT FOR THAT.
BUT THAT'S OUR FINAL, UH, DECISION POINT IF WE'RE GONNA MOVE FORWARD, UH, WITH CONSTRUCTION OF OUR CAPTAIN STITCH PROGRAMS. UH, AND OBVIOUSLY, UH, YOU KNOW, AS TIME EVOLVES, THOSE CONSTRUCTION COSTS WE COULD EXPECT, UH, TO GO UP.
AND THEN FINALLY, IF, UH, WE PRESERVE, UH, OUR ABILITY TO COME BACK AND CAP AT A LATER TIME, WE'RE NOT READY BY THE 27 AND 32, UH, DATES.
THEY'VE ASKED FOR A 10 YEAR MORATORIUM ON ANY ADDITIONAL CONSTRUCTION ON I 35, UH, DOWNTOWN, ONCE THEY FINISH THEIR CAPEX, UH, PROJECT.
SO THAT WOULD BE OUR NEXT OPPORTUNITY.
OKAY, SO THESE ARE THE FUNDING OPTIONS, UH, FOR THE CAP AND STITCH PROGRAM.
AND I'M GONNA HAND THIS OVER TO MS. OLIVAREZ.
UM, WE, THE LANDSCAPE HAS, UH, CONTINUED TO CHANGE IN A GOOD WAY.
UH, WHEN IT COMES TO THE CAP ANDIT, WE'VE RECEIVED THAT, THE $105 MILLION GRANT THAT RICHARD MENTIONED.
UM, AND WE CONTINUE TO HAVE REALLY GREAT CONVERSATIONS WITH TXDOT THAT HELP US IN TERMS OF SHAPING WHAT FUNDING OPTIONS WOULD BE BEST, UM, FOR THE VARIOUS COMPONENTS OF THIS PROJECT.
UM, PREVIOUSLY WE HAVE TALKED A LOT ABOUT TIA, THE TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT LOAN.
UH, BUT WE'VE TALKED ABOUT THE TFI LOAN AS BEING A GOOD OPTION SINCE THEN.
AS WE CONTINUE TO EXPLORE IT, WE'VE ACTUALLY DETERMINED IT'S NOT LIKE, IT'S NOT NECESSARILY WHERE WE SHOULD BE FOCUSING BECAUSE IT WOULD REQUIRE US TO STILL GO FOR A BOND ELECTION.
IT'S ESSENTIALLY PRIVATE PLACEMENT OF DEBT, AND WE WOULD HAVE TO DO, UH, UM, GO TO THE VOTERS FOR THAT BOND ELECTION.
SO, AND THE INTEREST, UH, COMPONENTS OR STRUCTURE TO THE LOAN ARE ACTUALLY NOT IN OUR FAVOR.
WE WOULD GET BETTER INTEREST RATES JUST WITH OUR REGULAR BOND SALES, UM, AS OPPOSED TO WITH THE TIA.
UM, FEDERAL GRANTS, UH, FOR INFRASTRUCTURE ARE ABSOLUTELY, UM, TOP OF MIND.
WE, LIKE I NOTED, WE RECEIVED 105 MILLION.
WE'RE CONTINUING TO GO AFTER ADDITIONAL GRANT FUNDING.
UM, BUT, UH, AND THEN PUBLIC IMPROVEMENT BONDS ARE OBVIOUSLY A, A, A VERY VIABLE SOURCE OF FUNDING, BUT WILL REQUIRE US TO GO TO THE VOTERS FOR THAT PURPOSE.
NOW, THE NEW KIND OF, UH, UM, UH, UH, GUEST TO THE PARTY IS THE STATE INFRASTRUCTURE BANK LOAN.
WE HAD LOOKED AT THIS SIB LOAN PREVIOUSLY, BUT THE DOLLAR AMOUNTS THAT THEY WERE AWARDING WERE NOT EXACTLY AT LEVELS THAT WERE JUST INTRIGUING FOR US.
UM, SINCE THEN, WE'VE HAD SOME REALLY POSITIVE CONVERSATIONS WITH FOLKS AT THE STATE THAT INDICATE THAT IT REALLY COULD BE A GREAT OPTION.
AND SO YOU ACTUALLY SEE ON YOUR AGENDA THIS WEEK, UM, A RESOLUTION TO APPROVE AN APPLICATION FOR AN SIB LOAN.
UM, THE, THE WAY THEY STRUCTURE THE INTEREST, UM, RATES FOR IT IS INCREDIBLY POSITIVE.
UM, IT'S BASICALLY IN LINE WITH WHAT WE WOULD BE GETTING ON THE MARKET BECAUSE OF OUR, OUR, UH, GEO CREDITED RATING.
UM, AND SO WE'RE, WE'RE REALLY EXCITED TO BE WORKING WITH TXDOT AND THE STATE GOING FORWARD ON, ON THIS APPLICATION PROCESS.
AND, UM, FOR THE, THE VARIOUS FUNDING OPPORTUNITIES IT CREATES.
UM, SO OUR VERY, OUR FOCUS RIGHT NOW IS FOR, IS FOR CERTAIN IS THE INFRASTRUCTURE, IS THAT, THAT BASE LEVEL, BUT WE DO NEED TO CONTINUE TO BE THINKING ABOUT THE AMENITIES AND THOSE OPERATING EXPENSES, UM, LONG TERM.
SO TAX INCREMENT FINANCING IS, IS STILL ON THE TABLE.
UM, BUT LIKE I NOTED BEFORE, THE, THE LANDSCAPE HAS CHANGED IN A GOOD WAY.
SO, BUT, AND IT'S CONTINUING TO CHANGE WITH THE VARIOUS FUNDING SOURCES COMING TO THE TABLE.
SO IT WILL BE SMART FOR US TO KIND OF STEP
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BACK AND TAKE A NEW FRESH LOOK, UM, AT WHAT THE TAX INCREMENT FINANCING, UM, CAPABILITIES FOR THE AREA WOULD BE, UM, TO MAKE SURE THAT WE'RE, WE'RE, WE'RE, WE'RE ATTACKING THAT PROSPECT, UM, WITH THE BEST INFORMATION POSSIBLE.UM, CERTIFICATES OF OBLIGATION, UM, BECAUSE THERE'S A DESIRE FOR US TO BE, TO PRESERVE ECONOMIC DEVELOPMENT, UM, POSSIBILITIES ON THESE CAPS.
UM, WE, WE DON'T, COS ARE NOT NECESSARILY THE BEST CHOICE FOR THE INFRASTRUCTURE, UM, AND CAP AMENITIES BECAUSE YOU CANNOT USE THOSE COS FOR ECONOMIC DEVELOPMENT PURPOSES.
UM, SO IF WE START USING IT FOR THE BASE INFRASTRUCTURE, IT WOULD PRECLUDE US FROM DOING THE ECONOMIC DEVELOPMENT ON THE CAPS LATER.
UM, THE, WE WILL CONTINUE TO LOOK AT PUBLIC PRIVATE PARTNERSHIPS FOR THOSE AMENITIES.
AND THE OPERATINGS IS GO, UM, FEES ARE DEFINITELY AN OPTION AND O AND M REVENUE.
UM, BUT IT'S THAT, I DON'T KNOW THAT THAT'S OUR, WHERE WE SHOULD BE PUTTING ALL, ALL OUR EGGS IN ONE BASKET KIND OF A, OF A SITUATION.
AND FINALLY, PHILANTHROPY, UM, PHILANTHROPY HAS BEEN VERY SUCCESSFUL IN OTHER CITIES, UM, THAT HAVE UTILIZED CAPS.
SO WE'LL DEFINITELY PURSUE THAT OPTION HERE AS WELL.
UM, HYPOTHETICAL FUNDING STACKS.
SO YOU'VE SEEN A SLIDE LIKE THIS BEFORE.
UM, WE'VE UPDATED IT TO, UH, NOTE WHERE WE'VE RECEIVED GRANTS.
WHAT WE'RE LOOKING AT IN TERMS OF SIB LOANS ALSO HAVE ADDED IN SOME DATE COMPONENTS TO IT.
UM, SO AGAIN, IT IS HYPOTHETICAL.
THIS IS NOT THE EXACT FINAL APPROVED FUNDING PLAN, BUT THESE IS, WE'RE KIND, WE'RE CONSTANTLY TWEAKING AND WORKING TO FIND WHERE WE COULD ACHIEVE THIS.
THE, THE VISION OF THIS, OF THIS PROGRAM, UM, SO YOU CAN SEE HERE WE THE, LIKE RICHARD WAS NOTING WITH THE VARIOUS DECISION POINTS BY THIS COMING DECEMBER, WE WOULD NEED TO BE, UH, MAKING FINAL DECISIONS ON CERTAIN ROADWAY ELEMENTS.
AND THAT'S WHERE FEDERAL GRANTS AT SIB LOANS ARE A SIGNIFICANT COMPONENT.
AND THEN BY DECEMBER OF 26, WE NEED TO START MAKING SOME BIG DECISIONS IN TERMS OF THE CAP, THE DECKS, UM, FOR CONSTRUCTION OF THAT.
UM, AND AGAIN, FEDERAL GRANTS CONTINUE TO PURSUE THAT SIB LOANS, UM, IN COMBINATION WITH FROM THE FIRST PHASE OF IT.
UM, BUT THIS IS WHERE A BOND ELECTION IS, IS A, IS A LIKELY, UM, COMPONENT OF IT.
UM, AND WE'VE TALKED ABOUT DOING A 2026 BOND ELECTION, SO THIS WOULD CO COINCIDE, UM, WITH THAT.
UM, CAP AMENITIES, AGAIN, THESE ARE ALL VERY, VERY ROUGH NUMBERS.
UM, AS WELL AS THE ANNUAL OPERATING EXPENSES.
IT'S, WE HAVEN'T DONE A FULL DESIGN OF THOSE ELEMENTS.
UM, SO, UH, WE'LL CONTINUE TO WORK DOWN THAT PATH.
BUT WE, WE RECOGNIZE THAT ONE FUNDING SOURCE IS ABSOLUTELY NOT GOING TO SOLVE ALL OF THIS.
THERE NEEDS TO BE A VERY, UM, A, A COMBINATION OF SOURCES THAT CREATE THAT OVERALL STACK FOR US TO ACHIEVE THIS VISION.
UM, AND IT'S WILL REQUIRE A LOT OF DIFFERENT, UM, FOLKS TO BE INVOLVED THROUGH FEDERAL, STATE, LOCAL, AND, UM, PRIVATE FUNDS TO MAKE THIS HAPPEN.
BUT WITH THAT FEDERAL GRANT AND OTHER HOPES WE HAVE FOR FUTURE PHOTO GRANTS AND THE SIB LOAN, IT IS A FAR MORE POSITIVE, UH, PERSPECTIVE WE HAVE ON THIS OVERALL PROGRAM GOING FORWARD.
UM, AND THEN WITH THAT, I'LL TURN IT BACK TO RICHARD.
UM, JUST ON THE GRANT FRONT, UH, WE DO KNOW THAT THE, UH, U-S-D-O-T OR US, UH, HIGHWAY ADMINISTRATION WILL BE PUTTING A CALL OUT FOR ANOTHER ROUND OF MEGA AND FRA GRANTS, UH, THIS SUMMER.
SO THOSE ARE THE LARGER PROGRAMS AND, UH, WE'VE ALREADY BEEN ADVISED, UH, BY OUR CONSULTANT THAT, UH, WOULD BE GOOD FOR US TO REAPPLY FOR THOSE, UH, THIS YEAR.
SO THIS DOESN'T DETERMINE THE OUTCOME OF A GRANT, BUT I'LL, I'LL LET THE COUNCIL AND OTHERS KNOW THAT.
UH, AFTER WE RECEIVED THE MOST RECENT 105 MILLION, UM, I RECEIVED A VERY GOOD PHONE CALL, UH, NICE PHONE CALL FROM, UH, THE SECRETARY OF TRANSPORTATION CONGRATULATING US ON RECEIVING THE 105 MILLION AND, UH, MAKING REFERENCE TO THE COMPELLING VISION OF WHAT WE'RE WE'RE ATTEMPTING TO DO HERE.
SO, UH, BUT WE, WE HAVE THE ATTENTION OF FOLKS, UH, OBVIOUSLY $105 MILLION IS TELLS YOU YOU HAVE SOME ATTENTION, BUT, UH, I'LL JUST ADD THAT.
AND SO OUR RECOMMENDATION TODAY IS TO APPLY FOR $191 MILLION OF STATE INFRASTRUCTURE BANK LOAN, AND THIS WILL BE APPLIED TO THE A HUNDRED PERCENT DESIGN AND CONSTRUCTION OF ALL THE ROADWAY ELEMENTS, UM, AS WELL AS THE HOLLY.
AND ADDITIONALLY, UH, WE RECOMMEND, UH, FUNDING WITH THIS LOAN.
THE DECK FOR THE CAP AT BETWEEN 11TH AND 12TH, WHICH WE HEARD VERY LOUDLY FROM OUR COMMUNITY IS, IS VERY DESIRED.
AND, UM, SO THAT, THAT AMOUNT TOTALS $291 MILLION.
AND, UM, YOU KNOW, THAT'S REALLY GOING OUTSIDE THE BOX AS MR. GOODE SAID.
[00:30:01]
BUT WE FEEL WE GOT A VERY STRONG, STRONG, UH, APPLICATION FOR THAT.SO I DID MENTION PREVIOUSLY THAT TEXTILE WILL BE ENTERING A HUNDRED PERCENT DESIGN.
THEY ARE GOING TO NEED MORE DESIGN CRITERIA FROM THE CITY BY THIS DECEMBER ON WHAT WE PLAN TO PLACE ON TOP OF THE CAPS TO INFORM THAT REMAINING A HUNDRED PERCENT DESIGN.
AND SO, I MEAN, THIS GETS DOWN TO WHAT ZONES WOULD WE LIKE TREES, WHERE WOULD WE LIKE TO PLACE BUILDINGS, UH, AMPHITHEATERS AMENITIES.
AND, UH, YOU WOULDN'T THINK, BUT TREES ACTUALLY ARE, ARE PRETTY, PRETTY HEAVY
AND SO FOR THEM TO MOVE FORWARD WITH A HUNDRED PERCENT DESIGN, THEY NEED AN IDEA OF WHERE OR, AND WHAT THAT WE INTEND TO PLACE ON THESE CAPS.
AND SO WHAT OUR TEAM HAS DONE IS, AND THIS WILL HAVE TO BE INFORMED AND ENGAGED WITH A VERY STRENUOUS PUBLIC ENGAGEMENT PRO PROCESS, OBVIOUSLY.
AND SO BETWEEN NOW AND OCTOBER, UH, WE'VE LAID OUT A FRAMEWORK FOR GOING OUT TO OUR PUBLIC THROUGHOUT THE CITY TO HELP INFORM US WHAT WOULD THEY LIKE TO SEE ON CAPS AND STITCHES ON, UH, I 35, UH, CENTRAL.
AND SO, UH, THIS BEGINS, UH, NEXT MONTH WHERE WE DEVELOP BASELINE PARAMETERS FOLLOWED BY PUBLIC HOUSES AND A CO COUPLE OF SERIES OF ONE-ON-ONES, UH, WITH EACH COUNCIL OFFICE SO WE CAN HEAR DIRECTLY FROM YOU, UH, UH, AND YOUR CONSTITUENTS, UH, VIA YOUR OFFICE.
AND SO THAT I BELIEVE CONCLUDES THE PRESENTATION AND I'M AVAILABLE FOR ANY QUESTIONS.
COUNCIL MEMBERS, ANY QUESTIONS OR COMMENTS? COUNCIL MEMBER VELA FOLLOWED BY COUNCIL MEMBER RYAN ALTER, WOULD THE ROADWAY ELEMENTS BE A PART OF, IN THAT, IN THAT ONE SLIDE YOU HAVE THE, THE SECTIONS HIGHLIGHTED WHERE, UH, IN BLUE FOR THE CITY AND IN ORANGE FOR THE, THE UT UH, CAPS, UM, THE OTHER SECTIONS WILL NOT BE CAPPED LIKE EITHER TODAY OR IN THE FUTURE.
I MEAN, THAT'S, THAT'S THEN THAT'S A QUESTION.
UH, AND IN OTHER WORDS, ARE THERE ANY AREAS WHERE WE WOULD PUT THE BASE SUPPORT IN ANTICIPATION OF FUTURE CAPS THAT ARE NOT HIGHLIGHTED ON THAT CHART? MM-HMM.
UM, AND THE SIZE OF THE BUILDINGS THAT CAN BE BUILT ON THE CAPS, DO WE HAVE ANY MORE KIND OF INSIGHT INTO, 'CAUSE I SAW THAT YOU'RE CONTEMPLATING, I THINK IT WAS $10 MILLION FOR THE GROUND LEASES FOR, YOU KNOW, UH, SPOTS ON THE CAPS.
AGAIN, WHAT SIZE BUILDINGS, ANY SENSE OF THAT AT THIS POINT? SO WE'LL KNOW MORE SPECIFICALLY AS WE GET COMMUNITY INPUT, BUT RIGHT NOW WE'RE WORKING WITH TDOT UNDER THE PREMISE.
THERE'LL BE TWO, THREE STORIES MAX, TWO TO THREE STORIES MAX? CORRECT.
FOLLOWED BY COUNCIL MEMBER FUENTES, WHAT IS THE TIMELINE FOR THE APPLICATION FOR THE INFRASTRUCTURE BANK? LIKE WHAT, SO HOW FAST WE GET THAT DETERMINATION? SORRY, SORRY.
UH, YES, I MEAN, WE'VE GOT THE APPLICATION DRAFTED AND IT'S READY TO LAUNCH, UH, UPON YOUR APPROVAL.
WE'VE BEEN TOLD IT'S ABOUT A SIX MONTH PROCESS FOR PROCESSING THAT WOULD PUT US ABOUT AUGUST, SEPTEMBER.
UM, WHAT DO WE HAVE A BACKUP PLAN? LIKE I, I'M LOOKING AT SLIDE 11 AND YOU KNOW, WE'VE GOT $163 MILLION IN THE DECISION BY DECEMBER, 2024 COLUMN AS A FROM THE SIB, IF WE EITHER DON'T GET THE AWARD OR GET A DIMINISHED AWARD, DO WE HAVE A BACKUP PLAN? YES.
IF WE GET LESS THAN THE 1 91, WE'LL HAVE TO HAVE ADDITIONAL CONVERSATIONS PRIMARILY AROUND WHERE WE WANT TO PRIORITIZE AND MOVE FORWARD WITH THE AVAILABLE FUNDING THAT WE HAVE.
UM, I ALSO UNDERSTAND THAT THE MEGA AND INFRA GRANT PROGRAMS FOR HIGHWAY PROJECTS IS GOING, THAT CALL'S GONNA COME SOONER THAN LAST YEAR AND IT'S GONNA BE FACILITATED, UH, FAIRLY QUICKLY.
SO IT'S A DYNAMIC, THE FUNDING, UH, IS A DYNAMIC SITUATION FOR US.
I'M JUST TRYING TO THINK OF THE OPTIONS AVAILABLE IF WE GET TO OCTO OR TO AUGUST, SEPTEMBER, IF THE ONLY OPTION AT THAT POINT AVAILABLE IS SOMETHING THAT REQUIRES VOTER APPROVAL, ARE WE GOING TO RUN UP AGAINST TIMELINES TO DO THAT? AND SO I JUST, I WANNA MAKE SURE AS WE THINK ABOUT BACKUP PLANS, THAT WE KEEP WHATEVER CONTINGENCIES IN PLACE AND, AND ARE RES YOU
[00:35:01]
KNOW, THINKING ABOUT THE TIMELINES OR THE, THE DEADLINES INVOLVED CORRECT.UM, AND THEN ON THE, THE TAX INCREMENT FINANCING TO ACHIEVE THAT, ARE WE PLANNING ON SETTING UP THE ZONE NOW OR SOON TO NOW SO THAT WE CAN GET THE MAXIMUM GAIN? SO WITH THE TAX INCREMENT FINANCING, I MEAN THERE WAS SOME INCREDIBLY PRELIMINARY WORK, UM, DONE TO JUST KINDA LOOK AT VERY HIGH LEVEL POSSIBILITIES.
BUT WITH THE, THE SHIFTS IN TERMS OF, UM, WHERE WE'RE LOOKING AT CAPS FOR AND THEN THE KIND OF THE STITCH WE'VE, WE'VE HAD CHANGES ON THAT FRONT.
UM, AND THEN ALSO WHAT WE'RE LOOKING AT IN TERMS OF THE NEW LAND THAT HAS CREATED.
UM, SO THERE'S BEEN A LOT OF, THERE'S BEEN CHANGES THAT REQUIRE US TO DO SOME MORE DETAILED INVESTIGATION AND ANALYSIS, UM, DETERMINE CAPABILITIES, UH, FINANCING CAPABILITIES FOR THE AREA.
UM, SO WE WOULD LIKELY, I DON'T, WE COULD, WE COULD LOOK INTO THE POSSIBILITY OF, OF ESTABLISHING SOMETHING THIS YEAR, BUT, UM, I'M JUST, I'M NOT A HUNDRED PERCENT CONFIDENT THAT THAT'S DOABLE AT THIS POINT.
I THINK THERE'S A LOT MORE CONVERSATION THAT NEEDS TO TAKE PLACE, UM, ESPECIALLY RELATIVE TO THE, UM, THE RESULTS OF THE SIB LOAN APPLICATION AND WHAT WE'RE LOOKING AT IN TERMS OF, OF IF, ARE WE STICKING WITH WHAT CAPS ARE PROPOSING OR ARE WE GONNA HAVE TO MAKE CHANGES BECAUSE THERE'S JUST, WE'RE JUST, WE'RE RIGHT.
WE'RE ALMOST THERE OF BEING ABLE TO HAVE JUST THE RIGHT AMOUNT OF INFORMATION TO DO SOMETHING AND DO IT MORE MEANINGFULLY.
UM, BUT WE'RE JUST NOT QUITE THERE YET.
UH, AND THANK YOU TO OUR STAFF FOR TODAY'S PRESENTATION.
I KNOW THIS IS VERY TIMELY COMING OFF THE HILLS OF $105 MILLION FEDERAL GRANT AWARD.
UM, SO CERTAINLY THIS INFORMATION IS SUPER RELEVANT TO US.
YOU KNOW, WE KNOW THAT THIS PROJECT, THE EXPANSION AND RENOVATION OF I 35 IS A GENERATIONAL PROJECT.
AND CERTAINLY IF WE'RE ASKING AUSTINITES TO GO THROUGH A DECADE OF TRAFFIC DELAYS IN CONSTRUCTION, UH, WE WANNA MAKE SURE THAT WE TAKE THE TIME TO, TO GET IT RIGHT.
AND ESPECIALLY FOR ME, THAT MEANS ENSURING THAT WE HAVE AS MUCH COVERS AND CAPS AND STITCHES AS POSSIBLE, UH, TO HAVE THAT RECONNECT FOR OUR COMMUNITIES AND TO HAVE THE AVAILABLE SPACE AND, UH, POTENTIAL OPPORTUNITIES TO MAKE THIS AN EVEN BETTER PROJECT.
SO SOME OF THE QUESTIONS I HAVE, UM, TO START WITH INCLUDE, I KNOW THAT THIS RECOMMENDATION INCLUDES THE HOLLY STITCH.
UM, WHAT HAPPENED TO THE OTHER TWO STITCHES THAT WE HAD PREVIOUSLY CONSIDERED? I THINK THERE WAS ONE ON 31ST, CORRECT? A 32ND AND 51ST, CORRECT.
SO IF YOU RECALL IN OUR CONVERSATIONS LAST DECEMBER, UH, WHEN WE BROUGHT FORWARD AN RCA TO ENTER TO THE A FA TO START 30% DESIGN, WE TALKED ABOUT THE, THE PROPOSED CAPS AND PROPOSED STITCH LOCATIONS, AND WE HAD CONVERSATION THAT PERHAPS STITCHES IN OF THEMSELVES DON'T CREATE THE ENVIRONMENT AND THE INSULATION, IF YOU WILL, FROM THE LOWER, UH, FROM THE FREEWAY UNDERNEATH THAN A FULL CAP DOES.
AND KNOWING THAT WE WERE GONNA HAVE, YOU KNOW, FUNDING, UH, CHALLENGES TO MAKE THESE IMPROVEMENTS, WE TALKED ABOUT FOCUSING OUR ATTENTION AND RESOURCES ON THE CAPS TO REALIZE THAT POTENTIAL.
AND THEN I BELIEVE I RECALL AT THE, TOWARDS THE END OF THAT CONVERSATION, UM, THERE WAS A DESIRE TO RETAIN AT LEAST THE HOLLY STITCH, UM, BECAUSE WE HAD FEEDBACK FROM, UH, THAT, THAT THAT IMMEDIATE COMMUNITY.
AND SO WE RETAINED THE HOLLY STITCH FOCUSED OUR ENERGIES AND ATTENTIONS ON THE REMAINING CAPS.
UM, AND SO THAT'S, THAT'S WHERE THE OTHER ONES FELL OFF.
AND DOES THIS SCENARIO, THE RECOMMENDATION THAT STAFF HAS LAID OUT TODAY, THAT INCLUDES THE STITCH AT CESAR CHAVEZ AS WELL? OR IS IT, SO CHAVEZ IS THE BEGINNING OF THE, UM, FEDERAL GRANT AWARD CAP, BUT IT EXTENDS FROM CESAR CHAVEZ NORTH TO FOURTH.
WE WANT TO RETAIN WHAT WE'RE CALLING IT, AN EXTENSION, NOT A STITCH SOUTH OF CAESAR CHAVEZ.
SO THAT DOES A COUPLE OF THINGS.
UH, IT HELPS WITH THE DESIGN AND PLACEMENT OF THOSE VENTILATION FANS.
BUT I HAVE IT DIFFERENTIATED IN THE COST ESTIMATES AS A CAESAR CHAVEZ SOUTH EXTENSION, UH, BECAUSE THAT WAS AFTER WE HAD APPLIED FOR THE GRANT AND IT WAS KIND OF MAKING THE MATH A LITTLE FUZZY.
SO, UM, THAT ONE'S, UH, RETAINED IN THERE.
AND THEN AS FAR AS, YOU KNOW, APPLYING FOR THIS
[00:40:01]
SIB LOAN, THE STATE INFRASTRUCTURE BANK LOAN, UM, ARE WE TAKING INTO ACCOUNT OR FACTORING IN ANY ADMINISTRATIVE COSTS? WILL WE NEED ADDITIONAL PERSONNEL TO HELP WITH THE, THE LOAN AND FINANCE ARRANGEMENTS? UM, HAS THAT BEEN FACTORED IN? I'M NOT SURE.SO FORTUNATELY WE HAVE STAFF THAT ARE INCREDIBLY CAPABLE, UH, ALREADY OF HANDLING THAT.
WE ACTUALLY HAVE, UH, WITHIN FINANCIAL SERVICES, WE HAVE, ONE OF OUR DEPUTY TREASURERS ACTUALLY USED TO RUN THIS PROGRAM, SO OH, NICE.
SO, UM, I'M, I'M FULLY CONFIDENT IN OUR, OUR STAFF'S CAPABIL ABILITY TO MANAGE THIS FOR SURE.
I JUST WANNA FLAG THAT BECAUSE I KNOW WITH THE OTHER LARGE INFRASTRUCTURE PROJECTS, YOU FIND OUT AFTER THE FACT THAT WE DIDN'T HAVE THE NECESSARY STAFF, UM, ADMINISTRATIVE LEAVE FOR US TO PROPERLY SCALE FROM, I MEAN, FROM THE FINANCIAL SIDE OF THINGS MANAGING IT, IT'S, UM, WE'LL BE INCORPORATING THIS INTO OUR DEBT SERVICE RATE.
IT'S JUST, IT'S LIKE ANY OF OUR, OUR, OUR REPAYMENT, UM, RESPONSIBILITIES FOR BONDS AND THE SORT.
UM, WHEN IT COMES TO THE ACTUAL PROJECT ADMINISTRATION, I WOULD DEFER TO RICHARD ON, ON THAT.
UM, BUT FROM FINANCIAL PERSPECTIVE, I THINK WE'RE, WE'RE SOLID.
AND THEN I THINK MS. OLIVARES, REAL QUICK, JUST ONE QUESTION MORE, ONE MORE QUESTION FOR YOU.
SO THE, UM, ON THIS SLIDE NINE SIDE, SLIDE 11, THE HYPOTHETICAL FUNDING STACK, THIS JUST TO BE SUPER CLEAR HERE, FOR US TO MOVE FORWARD WITH, UH, WITH THE MENU OF CAPS AND TO ENSURE THAT WE ARE SET UP TO HAVE THE CONVERSATION OF HAVING THE OTHER CAPS, UM, THAT ARE PROPOSED, THAT WILL INCLUDE A BOND ELECTION IN 2026.
THAT IS, THAT IS THE MOST LIKELY PATH.
AND, UH, LAST QUESTION, THE PRIORITIZATION OF CAPS, YOU KNOW, MY COLLEAGUES, I KNOW THAT AS WE SEE HERE, THAT WE HAVE ALL THESE DIFFERENT FINANCING MECHANISMS. THERE'S A LOT OF VARIABLES IN WHETHER OR NOT WE GET THE LOAN, WHETHER OR NOT MORE FEDERAL FUNDING COMES IN.
UM, AND, YOU KNOW, WANTING TO ADHERE TO THE, THE TIMELINES THAT TXDOT HAS LAID OUT FOR US, I WOULD LIKE TO KNOW FROM STAFF, WHEN SPECIFICALLY SHOULD WE START HAVING A CONVERSATION OR HOW DOES IT LOOK LIKE US HAVING THOSE DELIBERATIONS OF PRIORITIZE PRIORITIZING THE CAPS IN THEIR CONSTRUCTION? SO COUNCIL MEMBER, WE'LL BE WORKING WITH YOU CLOSELY THROUGH THE REMAINDER OF THIS YEAR AS PART OF THAT COMMUNITY ENGAGEMENT, UM, PLAN TO GET, UH, PUBLIC INPUT ON NOT ONLY WHICH, WHERE THE CAPS SHOULD BE PRIORITIZED, BUT ALSO WHAT THEY WANT TO SEE BUILT ON TOP.
AND SO WE'VE BUILT IN THE SCHEDULE A COUPLE OF SERIES ON OF ONE-ON-ONES AS WELL AS PUBLIC WORKSHOPS, UM, TO, TO, UM, GO THROUGH THAT PRIORITIZATION PROCESS.
UM, IS THERE CURRENTLY EVALUATION BEING DONE FOR GOING BACK TO THE SAME FEDERAL, UH, GRANT APPLICATION PROCESS FOR OTHER CAPS AND STITCHES? I KNOW WE WERE JUST SUCCESSFUL WITH THE $105 MILLION FOR CESAR CHAVEZ TO FOURTH STREET.
CAN WE CONTINUALLY GO BACK TO THOSE BUCKETS OR ARE THEY STARTING TO BE ALLOCATED TO PROJECTS? SO ALL THAT IS PART OF THE INFRASTRUCTURE INVESTMENT GENERATING JOBS ACT, AND THERE'S, I THINK IT'S LIKE A FOUR OR FIVE YEAR PROGRAM.
SO THERE'LL BE RECURRING CALLS AND NOTICE OF FUNDING OPPORTUNITIES BETWEEN NOW AND 26.
SO WE ARE DEFINITELY WORKING WITH OUR, UH, INTERGOVERNMENTAL RELATIONS OFFICE AND, UH, AT EVERY OPPORTUNITY THERE IS FOR FEDERAL APPLICATION, WE WILL BE MAKING THAT.
AND I'M, I'M REMEMBERING AS YOU WERE ANSWERING THAT QUESTION, I THINK THEY HAD SPELLED OUT OVER A NUMBER OF YEARS THEY WERE GONNA BE ALLOCATING CERTAIN PERCENTAGES OF WHAT CONGRESS HAD ALLOCATED.
IS THAT CORRECT? THAT'S CORRECT.
UM, DO WE KNOW THE STANDARD INTEREST RATE FOR THE SIB LOAN THAT WE'RE GOING TO BE APPLYING FOR? SO IT'S, THEY BASE IT OFF OF YOUR, YOUR GEO CREDIT RATING.
SO IN OUR CASES WE, WE HAVE AAA AND A AA PLUS RATING.
SO, UM, AND IT'S BASED OFF THE MMD, THERE'S, THERE'S STANDARDS IN TERMS OF THE MUNICIPAL, UM, INTEREST RATES.
UM, SO IT'S BASICALLY ON PAR WITH WHAT WE'D BE GETTING ON THE MARKET.
SO WE ARE ANTICIPATING INCREDIBLY LOW INTEREST RATES.
UM, SO IT, IT'S, UH, KIND OF A BLESSING KIND OF A SITUATION.
SO I'M PRETTY EXCITED FOR THAT ONE.
UM, AND I FORGET WHICH SLIDE NUMBER IT'S ON, BUT IT LOOKED LIKE WE WERE GOING TO BE EXPECTING ABOUT $50 MILLION PER YEAR FOR OPERATIONS AND MAINTENANCE OF THE AMENITIES.
DOES THAT SOUND RIGHT? I KNOW THIS IS A REALLY GREAT, UH, BREAKDOWN OF ALL OF THE DETAILS.
I JUST CAN'T REMEMBER WHICH SLIDE IT'S ON.
AND THESE ARE VERY ROUGH ESTIMATES.
COUNCIL MEMBER, UH, AS YOU CAN IMAGINE, YOU KNOW, WILL BE INFORMED WHAT THOSE AMENITIES WILL BE.
UH, BUT RIGHT NOW WE'VE GOT IT ESTIMATED AT 34 MILLION ANNUAL COSTS
[00:45:01]
FOR MAINTENANCE AMENITIES AND $15 MILLION A YEAR FOR THOSE ROADWAY ELEMENTS.AND I APOLOGIZE, I'M GONNA BACK UP ON THE 191 MILLION FOR SIB LOANS.
UM, THAT WILL NOT INCLUDE THE INTEREST RATE FOR REPAYMENT BECAUSE WE DON'T KNOW WHAT THAT IS YET.
AND THEN I WAS JUST MAKING A MENTAL NOTE THAT IF YOU ACTUALLY LOOK AT I 35 ON GOOGLE MAPS, IT, IT HAS A NAME OF MONARCH HIGHWAY, WHICH I THINK IS, UM, IS REALLY AMAZING.
I KNOW THERE'S BEEN A LOT OF WORK THAT TDOT ACTUALLY HAS DONE ON MAKING SURE THAT, UH, MONARCH BUTTERFLIES AND OTHER POLLINATORS OR NOT IN, YOU KNOW, IMPACTED AS, AS ROADS GET BUILT.
UM, SO AS FAR AS COMMUNITY BENEFITS, AMENITIES, YOU KNOW, WHAT DO WE WANT THE TOPS OF THOSE HIGHWAYS TO LOOK LIKE? UM, I HOPE THAT WE CAN PAY A SPECIAL MIND TO, YOU KNOW, TRYING TO GET THOSE TREES IN OR PICKING LIGHTER WEIGHT PLANTS THAT CAN STILL ACHIEVE THE SAME GOAL.
UM, I KNOW WE HAVE ANOTHER ITEM ON THE AGENDA THAT, UM, MAYOR PRO TEM POOL HAS AUTHORED THAT I'M CO-SPONSORING THAT IS SPECIFICALLY AROUND RIGHT OF WAY AND, AND TREES AND TRYING TO MITIGATE HEAT ISLAND EFFECT.
AND SO MAYBE WE CAN FIND A WAY TO INCORPORATE POLLINATOR GARDENS AND OTHER THINGS THAT ARE GONNA, UM, HELP OUR ECOSYSTEM IN THE LONG RUN.
BUT, UH, TO MY COLLEAGUES, I KNOW I'VE TALKED TO COUNCIL MEMBER CADRE A LITTLE BIT ABOUT THE PRIORITIZATION QUESTION THAT COUNCIL MEMBER FUENTES HAD BROUGHT UP.
AND SO WE MAY JUST ALL WANNA THINK ON OUR OWN AS THEY START THIS PUBLIC ENGAGEMENT AND GETTING OUR FEEDBACK OF, YOU KNOW, WHICH ONES WE THINK ARE HIGHEST PRIORITY AND IF, IF WE NEED TO PHASE THEM IN OVER A NUMBER OF YEARS, YOU KNOW, WHICH ONES ARE MOST IMPORTANT TO DO FIRST.
SO WE COULD PROBABLY START SOME OF THAT WORK ON OUR OWN, BUT CERTAINLY LOOK FORWARD TO HAVING THAT CONVERSATION, WHETHER IT'S THE FULL DAIS OR, UM, OR AT THE MOBILITY COMMITTEE MOVING FORWARD.
COUNCIL MEMBER, UH, ALISON ALTER, FOLLOWED BY COUNCIL MEMBER CADRE.
UM, THIS IS VERY EXCITING AND, AND I REALLY APPRECIATE THE PRESENTATION AND CONGRATULATIONS, UM, TO EVERYONE INVOLVED IN SECURING THE FEDERAL GRANT.
UM, I HAD A COUPLE OF QUESTIONS ABOUT THE UT CAP.
UM, I UNDERSTAND THAT GOES THROUGH A DIFFERENT PROCESS, BUT CAN YOU SPEAK TO US A LITTLE BIT ABOUT WHAT THEY HAVE PLANNED AND SORT OF THE HEIGHT AND TYPE AND HOW IT COMPARES TO WHAT WE'RE ABLE TO DO AND ANY ESTIMATES OF COSTS THAT WE HAVE FOR, FOR THAT ACREAGE? CERTAINLY, COUNCIL MEMBER, UH, OUR TEAM DOES MEET WITH THEM PERIODICALLY JUST TO COMPARE NOTES.
I KNOW THEY ARE PROBABLY ABOUT EIGHT TO 10 MONTHS BEHIND US.
THEY'VE ONLY JUST ONBOARDED A DESIGN CONSULTANT.
UH, WE'VE HAD ONE ON BOARD FOR, UM, A LITTLE OVER A YEAR.
AND, UH, IN TERMS OF COST ESTIMATES, YOU KNOW, OUTSIDE OF WHAT'S DEPICTED IN ORANGE, WHERE ALL THEIR POTENTIAL CAP LOCATIONS ARE, UH, WE DON'T HAVE ANYTHING FURTHER ON THAT.
WHAT ABOUT THE TIMETABLE THAT, UM, TDOT IS OFFERED TO THEM? HOW DOES THAT COMPARE TO OURS? I'M SORRY, COULD YOU REPEAT THAT? HOW DOES THE TIMETABLE THAT THEY'RE OPERATING WITH FROM TXDOT COMPARE TO OURS THAT I WOULD NEED TO REVIEW WITH THEM? I, I DON'T HAVE THAT INFORMATION RIGHT NOW.
UM, I WOULD BE CURIOUS ABOUT THAT.
AND, YOU KNOW, ALSO IN TERMS OF, UH, FINANCIAL STRUCTURING OF THAT, UM, IF THEY HAVE, UM, IDENTIFIED SOME ADDITIONAL WAYS, UH, TO FUND CAPS THAT WE MIGHT WANNA BE LOOKING AT AS WELL.
UM, AND THEN FOR THE, UM, SIB UH, FUNDING, UM, IF YOU COULD PLEASE LET THOSE OF US WHO KNOW WHO ON CAMPO, IF IT WOULD BE HELPFUL FOR US TO OFFER SOME KIND OF RESOLUTION AT CAMPO IN SUPPORT OF THE APPLICATION, UM, SURE THAT THE OTHER MEMBERS OF CAMPO WOULD BE SUPPORTIVE OF US GOING AFTER THIS LOAN.
UM, AND THAT MIGHT BE HELPFUL, UM, IN THE APPLICATION PROCESS TO DEMONSTRATE THAT COMMUNITY, UM, SUPPORT ACROSS THE REGION FOR IT.
UM, SO IF YOU COULD LET US KNOW THAT, IF THAT WOULD BE HELPFUL AND HELP US WITH THAT, THAT WOULD BE GREAT.
WE WILL WORK ON THAT RIGHT AWAY.
AND THEN I DID HAVE A QUESTION FOR MS. OLIVAREZ ON THE SAB LOAN.
UM, WE HAVE USED A SIMILAR LOAN STRUCTURE, I BELIEVE, FOR OUR WATER INFRASTRUCTURE FOR MANY YEARS.
IT'S ALLOWED US TO DEFEASE OUR DEBT, UM, OVER AND OVER AGAIN AND WAS ONE OF THE REASONS THAT WE WERE FOR SO LONG ABLE TO KEEP OUR WATER RATES DOWN.
HOW DOES THE SIB PROCESS COMPARE TO THAT WATER, UM, FUND? SO ARE YOU REFERRING TO THE TEXAS WATER DEVELOPMENT BOARD? YES.
UM, SO WITH THE TEXAS WATER DEVELOPMENT BOARD, UM, FUNDING IT, IT'S, THERE'S A LOT MORE SIMILARITIES TO, UM, A DEBT ISSUANCE, UM, FOR, SO IT'S A LITTLE BIT MORE COMPLICATED.
THE SIB LOAN, UM, IT'S ACTUALLY A LITTLE BIT MORE SIMPLIFIED.
UM, IT'S JUST A DIRECT AGREEMENT WITH THE STATE.
SO THE SIB IS BASICALLY REVOLVING LOAN FUND.
[00:50:01]
THE STATE IS, UM, UM, ADDING FUNDS TO THIS, UH, TO THIS PROGRAM.UM, AND THEY'RE CONTINUALLY RECYCLING THOSE SAME DOLLARS YEAR OVER YEAR, UM, TO VARIOUS PROJECTS.
SO, UM, IT IS JUST A DIRECT LOAN AGREEMENT.
UM, AND THEN, UM, THERE'S, WE'LL WORK OUT AN AMORTIZATION SCHEDULE, SO IT'S, IT'S LIKE, UM, DOING OUR, OUR BONDS, BUT SIMPLER.
UM, SO IT'S ACTUALLY A LITTLE BIT EASIER THAN THE WATER DEVELOPMENT BOARD, UM, AS A RESULT.
AND THE SAVINGS COMES FROM A REDUCTION IN THE INTEREST RATE THAT WE WOULD BE PAYING RELATIVE TO WHAT WE WOULD GET ON THE MARKET FOR THE SAME AMOUNT.
SO THERE'S, THERE'S NOT A A SAVINGS PER SE, IT'S JUST, IT'S, UM, LIKE THEY, SO THE M AND D, IT'LL BASICALLY BE THE AAA, UM, INTEREST RATE ON THE MMD WOULD, WOULD BE THE SAME RATE WE'D BE PAYING, UM, OR IF THEY GO WITH OUR AA PLUS, IT WOULD BE THE AAA PLUS FIVE BASIS POINTS.
UM, SO, UM, IT'S, THERE'S JUST A SET INTEREST RATE, A SET DIRECT LOAN AGREEMENT, SET AMORTIZATION SCHEDULE.
UM, WE'RE ABLE TO NEGOTIATE DIRECTLY WITH THEM AS OPPOSED TO HAVING TO DEAL WITH BROKERS AND DEALERS, UM, AND THE SORT LIKE IN A REGULAR BOND DEAL.
AND SO WE HAVE ACCESS TO THIS MONEY, BUT WE'D ALSO HAVE AC WHERE DOES THE SAVINGS COME FROM THEN? WHICH, WHAT SA I, I DON'T WHICH SAVINGS ARE YOU REFERRING TO? SO I, IF THIS IS JUST A WAY TO GET A LOAN YES, YES.
UM, WE STILL HAVE TO, YOU KNOW, PAY IT OFF OVER TIME.
IT'S NOT, IT'S JUST SLIGHTLY, I'M JUST TRYING TO UNDERSTAND KIND OF THE BENEFIT OF DOING YEAH, WELL, WAY VERSUS THE OTHER, WHICH IS RELEVANT IF WE DON'T RECEIVE THE LOAN.
AND RICHARD JUST, UH, REMINDED ME THERE ARE NO CLOSING COSTS FOR THIS.
SO IF WITH A REGULAR BOND DEAL YOU HAVE ISSU COST OF ISSUANCE, SO THERE'S, IT'S THE, IT COSTS MONEY TO MAKE MONEY KIND OF CONCEPT.
UM, IN THIS CASE YOU DON'T, IT'S JUST YOUR DIRECT LOAN AGREEMENT AND YOU'RE NOT, AND, AND YOU START MAKING YOUR PAYMENTS WHEN YOU DRAW DOWN ON THE LOAN.
UM, SO IT'S JUST, IT'S A MUCH SIMPLER SITUATION.
AND NOW MY BOSS IS BEHIND ME, SO I'LL LET HIM JUMP IN.
ED VAN NINO, CHIEF FINANCIAL OFFICER.
SO THERE'S NOT REALLY A SAVINGS TO THIS APPROACH.
THE ADVANTAGE IS THAT THE, THE RESTRICTIONS ON THIS SOURCE OF FUNDING COMPARED TO OTHER SOURCES OF FUNDING ARE FAVORABLE TO THIS CITY.
WE CAN, THROUGH USING THIS LOAN TO BUILD THE, THE KEY INFRASTRUCTURE, WE REALLY WOULD HAVE NO LIMITATIONS ON WHAT WE PUT ON TOP OF THE CAPS.
WE COULD DO PARKS, WE COULD DO ECONOMIC DEVELOPMENT.
SO THAT'S WHY THE SIB LOAN PROCESS IS MORE ATTRACTIVE TO, TO US AND SOME OF OUR OTHER DEBT OPTIONS.
COUNCIL MEMBER CADRE, FOLLOWED BY THE MAYOR PRO, TIM.
THANK YOU MAYOR, UH, AND REALLY APPRECIATE THE PRESENTATION.
ONE'S MORE OF A GENERAL QUESTION, AND THEN I WANT TO GET INTO SOME, UH, PET BIKE CROSSINGS, UH, QUESTIONS.
BUT MY GENERAL QUESTION IS WHAT PART OF THESE CAPS, UH, IS TEXT DOT GOING TO, TO BE PAYING FOR? OKAY, SO AS IN TERMS OF THE CAPS, THE CITY IS RESPONSIBLE FOR ALL COSTS, BOTH, UH, ENGINEERING, DESIGN, CONSTRUCTION, AND THEN THE ONGOING MAINTENANCE.
AND THIS IS NO DIFFERENT THAN ANY OTHER TEXAS DOT HIGHWAY PROJECT, UH, WHERE A MUNICIPALITY WILL COME TO THEM AND SEEK BETTERMENTS AND THEY'LL ENTER THOSE AGREEMENTS AND THEN RE REQUIRE, UH, THAT, UM, UH, MUNICIPALITY TO ASSUME THOSE COSTS.
AND THEN, UH, I APPRECIATE THAT.
UH, AND THEN MY, MY NEXT SET OF QUESTIONS, UM, YOU KNOW, I BELIEVE, YOU KNOW, THE LEAST WE CAN DO IS HAVE A SIMPLE PED BIKE CROSSING SOUTH OF HOLLY AND ST.
YOU KNOW, I THINK HUMAN SAFETY, UH, BEATS EVERYTHING, UH, QUITE FRANKLY, AND, YOU KNOW, WE'VE, UH, UNFORTUNATELY SEEN WHEN WE DON'T PRIORITIZE HUMAN SAFETY, WHAT, UH, WHAT WOULD OFTEN HAPPEN.
SO I JUST WANTED TO KNOW THREE QUESTIONS ON THAT.
UH, YOU KNOW, QUESTION NUMBER ONE, IS THERE A POSSIBILITY TO ADD SOUTH OF THE BRIDGE? SO WE CAN DEFINITELY, UH, HAVE THOSE CONVERSATIONS WITH TXDOT.
WE'RE HAVING SIMILAR CONVERSATIONS, COUNCIL MEMBER AT THE 51ST STREET BRIDGE AND, UH, WHICH THEY RECONSTRUCTED MUCH LIKE THEY JUST, UH, RECENTLY RECONSTRUCTED THE UL TORF, UH, CROSSING.
THEY'RE AMENABLE TO ADDING, UH, SOME SAFETY FEATURES FOR BIKE AND P AS WELL AS SOME LIGHTWEIGHT SHADE STRUCTURES.
UM, BUT AT THIS MOMENT, WE'RE NOT ANTICIPATING MOVING FORWARD WITH ADDITIONAL STITCH LOCATION SOUTH OF THE, THE HOLLY STITCH.
SO, SO YOU WOULDN'T BE ABLE TO HAVE ANY, UH, POTENTIAL COST ESTIMATE OF, OF, OF THAT CURRENTLY? UM, THE ONLY COST ESTIMATE WOULD BE IF WE, UM, UM, LIKE FOR THE HOLLY STITCH ROADWAY ELEMENTS ARE LIKE NINE TO $10 MILLION.
[00:55:01]
BE PHASED.THEY WOULD HAVE TO BE DONE UP FRONT.
AND, AND IS THIS SOMETHING, I KNOW YOU, YOU JUST SAID IT'S NOT SOMETHING BEING CONSIDERED NOW, BUT COULD THIS BE ADDED AFTER CONSTRUCTION J JUST TO ADD SOMETHING TOO, AND RICHARD, CORRECT ME IF I'M WRONG, BUT TDOT'S PUTTING IN THE BASE, THEIR BASE STITCH ON ALL THE CROSSINGS SO THEIR, THEIR BASE STITCH WOULD ACCOMMODATE BIKE AND PIT.
IT, IT'S, WHEN WE GO BEYOND THAT, AND I CAN'T REMEMBER THE DIMENSION, IF YOU DO RICHARD, IF I THINK IT IS 30 FEET, IF WE GO BEYOND THAT, IT WAS THE CITY'S EXPENSE.
SO TEXTILES ALREADY PUTTING IN AN ENHANCED CROSSING ON ALL THEIR OVER ON ALL THEIR, UH, BRIDGES.
SO THERE, THERE'LL BE BIKE PED COMPONENTS ON ALL THE TECH STOCK CROSSINGS.
UM, ONE WAY TO VISUALIZE THOSE IS, WHILE NOT EXACT, THIS IS NOT, I WANNA BE CLEAR, I'M NOT GIVING AN EXACT NUMBER, BUT IF YOU VISUALIZE THE PFLUGER PEDESTRIAN BRIDGE AT, YOU KNOW, ROUGHLY AT LAMAR OVER LADY BIRD LAKE, THAT IS ROUGHLY THE WIDTH OF THE TEXDOT STITCHES THAT IT'S DOING ALREADY.
WE'RE TALKING ABOUT THE ADDITIONS TO THE SIZE OF THOSE STITCHES AND OR CAPS.
SO COUNCIL MEMBER, WE'LL, WE'LL WORK ON THAT WITH TDOT TO ENSURE THOSE BIKE AND PED FACILITIES ARE ON THEIR, THEIR, ON THEIR BASELINE STITCHES.
COUNCIL MEMBER CADRE, UH, MAYOR PRO TEM, THAT'S REALLY GOOD REMINDER ABOUT WHAT TTA IS DOING WITH THE BIKE AND PED CROSSINGS AND, AND, UM, JUST TO BE REMINDED OF THAT AND TO SEE WHERE ALL THOSE ARE GONNA BE, THE QUESTION I HAD WAS ON INTEREST RATES FOR THE VARIOUS TOOLS, ARE THOSE FIXED OR VARIABLE? CAN YOU ASK THE QUESTION AGAIN? I'M SORRY.
INTEREST RATES ON THE VARIOUS DIFFERENT TYPES OF FINANCIAL INSTRUMENTS OKAY.
IF WE ARE, IF WE'RE BUYING, IF WE ARE USING THEM AND INTEREST IS ATTACHED, IS IT A FIXED RATE OR DOES IT FLUCTUATE WITH THE FED? WITH THE FED RESERVE, WE, WE DO A FIXED RATE.
UM, SO, AND I'VE JUST BEEN GETTING SOME ADDITIONAL INFORMATION, AND THIS CONNECTS BACK TO COMM S QUESTION, UM, WITH THE SIB LOAN AND WITH OUR, JUST OUR GEO DEBT IN GENERAL, AAA RATING IS RANGING, THE INTEREST RATE IS RANGING AT AROUND THREE AND A HALF, THREE AND QUARTER PERCENT RIGHT NOW.
I JUST, THE QUAL OUR GO RATING CONTINUES TO BE AN INCREDIBLY IMPORTANT FACTOR FOR US WHEN IT COMES TO OUR, OUR FINANCIAL PLANNING.
UM, AND SO WE'RE LOOKING AT AN INCREDIBLY LOW INTEREST RATE FOR BOTH ANY, UH, BOND ELECTION AS WELL AS SIB LOAN.
UH, SO, BUT IT, IT WILL BE FIXED.
AND ALSO A REMINDER TO US TO BE REALLY CAUTIOUS WITH REGARD TO OUR SPENDING AND OUR POLICIES SUCH THAT WE ENSURE THAT WE KEEP THOSE BOND RATINGS AS HIGH AS POSSIBLE AS WE POSSIBLY CAN.
BECAUSE WHEN THOSE SHIFT AND DROP, THEN WE WILL, WE PAY MORE IN INTEREST RATES.
UM, I THINK THAT CONCLUDES EVERYBODY THAT HAD A COMMENT OR A QUESTION.
UH, I WILL, UH, SAY AS WE, AS WE CONCLUDE THIS BRIEFING, AND THANK YOU VERY MUCH FOR A VERY THOROUGH BRIEFING.
UH, YOU CAN TELL THERE'S A LOT OF, UM, ANTICIPATION WITH REGARD TO THIS.
UH, I ALSO WANNA SAY THANK YOU TO TDOT, BECAUSE AS MR. GOOD, UH, GOOD POINTED OUT AT THE VERY BEGINNING, UH, THIS, THEY HAVE SIGNALED TO US, UH, A WILLINGNESS TO ENTERTAIN A MUCH BIGGER OPPORTUNITY HERE THAT IS CONSISTENT, I THINK WITH HAVING, UH, THE KIND OF RELATIONSHIP THAT WE WANT TO HAVE WITH THE STATE GOVERNMENT SO THAT WE CAN PARTNER ON PROJECTS LIKE THIS.
AND I JUST WANT TO, UH, SAY TO THEM, THANK YOU FOR, UH, TAKING THAT POSITION.
[B2. Dougherty Arts Center. ]
MOVE TO ITEM NUMBER B TWO AND, UM, MANAGER, I'LL RECOGNIZE YOU.UH, UH, ASSISTANT MANAGER STEPHANIE HAYDEN HOWARD IS GONNA MAKE, UH, THE INTRODUCTION TO THIS.
AND THEN, UH, KIMBERLY, UH, UH, MCNEELY IS GONNA DO THE PRESENTATION.
THIS SHOULD BE A ROUTINE 10 MINUTE ITEM.
GOOD MORNING, STEPHANIE HAYDEN HOWARD, ASSISTANT CITY MANAGER.
IN 2018, THE VOTERS APPROVED A BOND, UM, TO PROVIDE AN UPDATE TO THE DORY ARTS CENTER.
OUR STAFF MOVED FORWARD WITH COMMUNITY ENGAGEMENT, AND WE ALSO RECEIVED DIRECTION, UM, FROM COUNCIL ON THIS PROJECT.
AND FROM THERE, UM, STAFF BEGAN TO WORK ON THE PROJECT BASED UPON THE FEEDBACK THAT WE RECEIVED.
AND AFTER WE STARTED TO PUT EVERYTHING TOGETHER, THE PROJECT, UM, INCREASED BY 30, OVER $30 MILLION.
[01:00:01]
WITH THAT IN MIND, AS WE BEGAN TO LOOK AT THE PROJECT A LITTLE CLOSER AND STARTED TO EVALUATE WHERE WE WOULD RECEIVE THE ADDITIONAL OVER $30 MILLION, UM, WE'RE COMING BACK TO YOU TO PROVIDE AN UPDATE OF OUR RECOMMENDATIONS, UM, BECAUSE WE REALLY NEED TO BE ABLE TO MOVE THIS PROJECT FORWARD USING ONLY THE $28 MILLION.SO I WILL ASK KIMBERLY MC, DIRECTOR KIMBERLY MCNEELY TO COME UP AND PROVIDE THE PRESENTATION.
GOOD MORNING, COUNCIL MEMBERS AND MAYOR BUDDIES OFF THE DAIS.
UM, KIMBERLY MCNEELY SERVING AS THE PARKS AND RECREATION DIRECTOR.
SO TODAY'S PRESENTATION, WE'LL JUST GIVE YOU A LITTLE BIT OF THE PROJECT HISTORY, UM, TALK A LITTLE BIT ABOUT THE CURRENT CONDITIONS OF THE SITE, TALK A LITTLE BIT ABOUT THE PROJECT TIMELINE AND THE CHALLENGES, AND THEN IT'S A PROJECT RECOMMENDATION AT THE END OF THIS PARTICULAR PRESENTATION.
SO THE HISTORY OF OUR PROJECT IS THAT WE WERE ORIGINALLY UH, HAD $28 MILLION FOR THIS PARTICULAR PROJECT, AND WE, UH, ADVERTISED THIS PROJECT AS BEING A, UH, REBUILD OF THE EXISTING DECK.
SO THE DOHERTY ART CENTER IS SITTING RIGHT NOW ON BARTON SPRINGS ROAD, MOVING THAT FROM BARTON SPRINGS TO THE BUTLER SHORES AREA.
AND I BEG YOUR PARDON, TO BUTLER PARK AREA, WHICH IS ACTUALLY BEHIND THE CURRENT, UH, PARKS AND RECREATION DEPARTMENT, UH, HEADQUARTERS AND ADJACENT TO THE, TO THE ZACH SCOTT THEATER.
AND IT TALKED ABOUT, UH, HAVING A, A VERY, UH, UH, REPLACING THE EXISTING, THE EXISTING SPACE, WHICH WOULD'VE INCLUDED A THEATER, WHICH IS ABOUT 200 SEATS.
IT WOULD'VE INCLUDED A GALLERY ABOUT 2,500 SQUARE FEET OF A GALLERY.
UM, THE SCHOOL THAT IS AVAILABLE THERE FOR AFTERSCHOOL PROGRAMMING AND ALSO ADULT PROGRAMMING, WHICH INCLUDED, UM, WET CLASSROOMS. AND BY THAT, IT MEANS THAT THERE WOULD BE AREAS FOR, UH, THINGS THAT NEED CLEANUP OR CLAY, UH, TO HAPPEN, UH, AND A DARK ROOM, A STUDIO, AND THEN ALSO SOME MODEST SPACES FOR STAFF, UH, TO BE ABLE TO HOUSE 11 PERMANENT STAFF AND NINE TEMPORARY EMPLOYEES.
AND WE ALSO ASKED FOR A LUNCH ROOM AND A COFFEE ROOM TO BE ABLE TO, UH, EAT AND, UH, AND MAKE COPIES OF STUFF, RIGHT, DO ADMINISTRATIVE WORK.
SO IT WAS PRETTY MODEST, JUST A REPLACEMENT OF THE FACILITY, UH, HOW WE GOT TO THIS, RIGHT? HOW WE BECAME AWARE THAT THIS WAS GOING TO BE, THE RECOMMENDATION IS THAT THE PARKS AND RECREATION DEPARTMENT STARTED IN 2010, UH, WHERE WE HAD A FEASIBILITY STUDY, I BEG YOUR PARDON, WHERE WE DID A CONDITIONS ASSESSMENT.
AND THAT CONDITIONS ASSESSMENT REMINDED US THAT THIS IS THE SPACE WHERE THE DOOR CURRENTLY SITS, IS ON A, UH, ON A, A LANDFILL.
AND IT'S IN THE 25 YEAR FLOOD PLAIN.
AND THAT IT HAD SOME CONDITIONS, UH, ABOUT THE BUILDING BECAUSE THE BUILDING'S FROM 1974, SO IT HAD SOME PLUMBING ISSUES AND SOME MECHANICAL ISSUES AND SOME ROOF ISSUES.
AND THEN IN 2012, BETWEEN 2010 AND 2018, UH, WE DID RECEIVE $3.9 MILLION VIA A BOND PROGRAM, UH, IN 2012.
HOWEVER, AT THAT TIME, WE TRIED TO EXPRESS THAT THAT AMOUNT OF MONEY WAS NOT GOING TO BE SUFFICIENT TO BE ABLE TO REPLACE.
AND SO WE TRIED TO BE VERY FISCALLY RESPONSIBLE AND SET THAT MONEY ASIDE EXCEPT FOR $400,000 THAT WE USED TO REPLACE THE ROOF.
AND WE ALSO, UH, AT THAT TIME, BETWEEN 2012 AND 2018, WE EXPLORED MULTIPLE OPTIONS, UH, MULTIPLE PARTNERSHIP OPTIONS WITH A ISD.
WE APPLIED, UH, LOOKED AT OPTIONS, PERHAPS WITH TRAVIS COUNTY.
WE LOOKED AT OTHER CITY FACILITIES.
WE LOOKED AT OTHER PIECES OF PROPERTY FOR SALE, BUT ULTIMATELY ENDED UP WHERE WE ARE, WHERE THE BUILDING IS GOING TO BE, OR WHERE WE PROPOSE THAT THE BUILDING BE BUILT.
UM, TODAY IN 2015, WE DID A FEASIBILITY STUDY AND WE BROUGHT FORWARD, UM, MULTIPLE OPTIONS AS TO WHERE THE BUILDING COULD BE, AND THAT'S WHERE WE ENDED UP WITH THE, UH, WITH THE SITE THAT WE ARE PROPOSING TODAY.
WE EXPLORED, UH, WITH ED AND HIS TEAM, WE EXPLORED THE P THREE OPTION, UM, IN, IN 2016 AND 2017.
BUT BECAUSE OF THE UNIQUENESS OF BEING ON PARKLAND, THE, UH, THE PUBLIC PRIVATE PARTNERSHIPS MODEL DOES NOT WORK FOR, FOR THIS PIECE OF PROPERTY BECAUSE IT IS PARKLAND PROPERTY.
I ALSO WANTED TO JUST LET YOU KNOW THAT IN THIS TIME RIGHT AFTER THE BOND WAS UH, PASSED, WE DID ADVERTISE TO THE COMMUNITY THAT, AND WE SENT A MEMO TO, TO MAYOR AND COUNCIL, AND WE SAID, HEY, WE WANNA LET YOU KNOW THAT WE'RE GONNA USE SOME OF THIS BOND MONEY TO FIX THE ROOF, BECAUSE WE KNOW THAT WE CAN'T CONTINUE TO HAVE PROGRAMMING WITHOUT THE ROOF BEING FIXED.
HOWEVER, WE HAVE REALLY GREAT NEWS FOR YOU CITY COUNCIL.
WE ARE GOING TO START AN RFQ IN THE SPRINGTIME.
WE'RE GOING TO GO THROUGH THE CONSTRUCTION PROCESS AND THE, AND THE ENGAGEMENT
[01:05:01]
PROCESS, AND HOPEFULLY HAVE THIS PARTICULAR PROJECT, UH, ON THE GROUND IN THE FALL OF 2021 WITH SUBSTANTIAL COMPLETION IN THE SUMMER OF 2023.THAT'S WHAT WE ADVERTISED TO YOU IN 2018.
SO I DON'T HAVE TO TELL YOU THAT IT'S 2024.
SO HERE'S A LITTLE BIT ABOUT THAT.
CONDITIONS AS YOU IS, IS DIFFERENT.
UH, JUST SO YOU KNOW THAT THE CONDITIONS ASSESSMENT THAT WE DID THAT YOU SAW ON THE FIRST PAGE, THIS IS WHAT IT TOLD US.
IT SAID, HEY, YOU'RE IN A FLOODPLAIN AND YOU HAVE A LOT OF FLOOD RISKS, JUST SO THAT YOU ALL KNOW.
UH, AND THE PUBLIC KNOWS, UH, THAT BUILDING.
WHEN WE HAVE, UH, EXTRA WATER, IT DOES FLOOD ON A REGULAR BASIS.
WE HAVE AN ENTIRE PROTOCOL FOR OUR EMERGENCY MANAGEMENT TO MAKE SURE THAT EVERYONE IS SAFE AND TO MAKE SURE THAT WE PROTECT THE BUILDING TO THE EXTENT POSSIBLE.
UH, WE HAVE SOME A DA COMPLIANCE CONSTRAINTS, AND WE DO MAKE SURE THAT WE HAVE APPROPRIATE ACCOMMODATIONS, BUT IT'S NOT AS A DA COMPLIANT AS IT COULD BE.
UH, WE HAVE STRUCTURAL ISSUES.
UH, THE BUILDING IS BEGINNING TO, UH, IT'S FOUNDATION TO SINK A LITTLE BIT INTO THE, INTO THE LANDFILL, WHICH THEN MEANS THAT WE HAVE, UH, PLUMBING ISSUES.
UH, WE HAVE LEAD AND ASBESTOS ISSUES.
WE DO HAVE A ROOF THAT WAS FAILING, BUT WE FIXED IT.
AND WE HAVE CEILINGS THAT HAVE SOME OF THOSE ISSUES.
'CAUSE AS THE FOUNDATION ISN'T AS STURDY, RIGHT, WE KNOW WHAT GOES ALONG WITH THAT.
THE HVAC IS HAVING SOME TROUBLE AND, UM, THE DOORS AND WINDOWS, BECAUSE THE FOUNDATION IS SHIFTING A LITTLE BIT, THEY ALSO HAVE THEIR, THEIR OWN, UM, THEIR OWN ISSUES.
AND SO WE'VE BEEN MAINTAINING THIS STRUCTURE, FRANKLY, SINCE 2010, BECAUSE WE BECAME AWARE THAT THE STRUCTURE WAS, UH, HAVING ISSUES IN 2010.
SO FOR THE LAST, UH, 14 YEARS WE'VE BEEN, WE'VE BEEN MAKING IT WORK, WHICH MEANS THAT I'M GETTING MORE AND MORE ANXIOUS AS TIME GOES ON.
AND THAT'S ABOUT THE REASON WHY WE'RE ABOUT TO BRING THIS RECOMMENDATION FORWARD, TO MOVE FORWARD WITH THE PROJECT.
UH, THIS IS A LITTLE BIT ABOUT THE TIMELINE.
UH, WE DID HAVE COMMUNITY ENGAGEMENT IN 2018, JUST AS WE HAD ADVERTISED IN 2019.
WE BROUGHT FORWARD, UH, SOME INFORMATION TO THE CITY COUNCIL AT THAT TIME AND RECEIVED DIRECTION.
AND THAT DIRECTION INCLUDED THAT WE WOULD WANT TO PER PRESERVE OPEN SPACE.
WE WANNA EXPLORE SHARED INFRASTRUCTURE WITH OUR, OUR ADJACENT LANDOWNERS.
AND BY ADJACENT LANDOWNERS, THAT MEANT THE ZACH SCOTT THEATER.
ALSO MAKING SURE THAT WE WERE TAKING CARE OF THE BUTLER, I BEG YOUR PARDON, THE, UH, BALL FIELDS THAT WERE, UH, JUST ADJACENT TO THE BUTLER FIELD.
AND THAT WE WERE ALSO TAKING A LOOK AT HOW THE PARKS AND RECREATION DEPARTMENT HEADQUARTERS COULD BE INCORPORATED.
UM, THAT WE NEEDED TO DO A COMPREHENSIVE TRAFFIC DEMAND MANAGEMENT STUDY, AND IT WOULD BE FOR THE LARGER DISTRICT AREA.
WE WERE ALSO ASKED TO PROVIDE PARKING, AND THAT ANY PARKING BE STRUCTURED AND UNDERGROUND, AND THAT SHOULD ONLY BE ACCESSED FROM RIVERSIDE DRIVE.
UH, THIS MEANT THAT WE HAD TO REMOVE THE SURFACE PARKING.
UH, WE HAD TO ALSO FIGURE OUT HOW TO MAKE SURE WE WERE MANAGING THE USE OF THE SURFACE PARKING THAT ZACH SCOTT THEATER HAD.
AND SO WE HAD TO COME UP WITH WAYS THAT ZACH COULD SHARE SOME SPACES WE HAD TO EXPLORE.
WE WERE ASKED TO EXPLORE ALTERNATIVE FINANCING, UM, MECHANISMS, INCLUDING THE PARKING GARAGE, A PHILANTHROPIC INTEREST, UM, BEING ABLE TO SEE IF THERE WERE OTHER, UH, PARKING STRUCTURES THAT WERE GOING UP NEIGHBORING THE, IN THE AREA THAT COULD BE USED FOR THIS PURPOSE.
UM, WE LOOKED INTO REVENUE, FINANCE, PARKING, TRANSPORTATION, DEMAND MANAGEMENT.
WE WERE DIRECTED TO DESIGN FOR FUTURE PHASES, AND THEN WE WERE DIRECTED TO EXPLORE PHILANTHROPIC INTERESTS.
UH, I, THAT WAS BOTH THE, THAT WAS ALL THE DIRECTION THAT WE RECEIVED IN 2019.
AND THEN IN 2021, I JUST WANNA GO BACK TO, I BEG YOUR TURN IN 2022.
I WANNA GO BACK TO 2021 AND LET YOU KNOW THAT, UH, THE COUNCIL AT THAT TIME ALSO WAS BROUGHT FORWARD TWO OPTIONS OF HOW THE BUILDING COULD SIT ON THE LAND.
AND THEY SELECTED A PREFERRED OPTION.
AND WITH THAT PREFERRED OPTION, IT ALSO ADDED SOME ADDITIONAL EXPENSES TO THE WAY THAT THE BUILDING WAS SITTING ON THE SITE.
SO PLEASE KNOW THAT WE DID TRY TO REITERATE THAT ALL OF THE DIRECTION THAT WAS BEING PROVIDED WOULD ABSOLUTELY, UH, INCREASE THE COSTS OF THIS PARTICULAR PROGRAM, AND THAT WE DIDN'T HAVE ADDITIONAL FUNDING, ALTHOUGH WE WERE GOING TO EXPLORE TO THE BEST OF OUR ABILITY, THE OPTIONS, UH, RELATED TO PHILANTHROPIC.
AND WE WERE ALSO GOING TO WORK WITH OUR PARTNERS IN TRANSPORTATION.
ULTIMATELY, I'LL TALK A LITTLE BIT ABOUT THAT.
UM, NEITHER OF THOSE WORKED, UH, TO, TO OUR ADVANTAGE.
WE ALSO EXPLORED THE ISSUANCE OF DEBT.
SO CERTIFICATES OF OBLIGATION AND THE MOST THAT WE HAVE EVER RECEIVED, AND CERTIFICATES OF OBLIGATION BEING AS FISCALLY RESPONSIBLE AS POSSIBLE WAS 3.3 MILLION.
AND THAT WAS FOR A DIFFERENT PROJECT WITH THE, UM, NASH HERNANDEZ
[01:10:01]
BUILDING.SO ASKING FOR 30 MILLION IN CERTIFICATES OF OBLIGATION JUST WAS NOT FEASIBLE, NOR WAS WE, DID I BELIEVE IT WAS FISCALLY IRRESPONSIBLE.
AND I BELIEVE ED AND HIS TEAM AGREED, UH, HENCE THAT WAS NOT AN OPTION THAT WE WERE ABLE TO CONTINUE TO EXPLORE.
THIS SLIDE RIGHT HERE HELPS TO, UM, SHOW HOW THE DIFFERENT DIRECTION THAT WE PROVIDED, UH, INCREASE THE COST OF THE PROJECT.
AND SO, UH, THERE IS SOME ESCALATING COST RELATED TO, UH, THE ACTUAL CONSTRUCTION, RIGHT? SO INFLATION SUPPLY CHAIN ISSUES, THAT WAS ABOUT A $6 MILLION INCREASE IN, IN THE, UH, INFLATION OR IN THE COST ESCALATION, BUT IT ULTIMATELY, IT'S $30.65 MILLION THAT THIS PROJECT, UH, EXCEEDED THE BUDGET THAT WE WERE GIVEN.
UM, PLEASE KNOW THAT THERE'S A COUPLE OF CHALLENGES THAT I THINK I MIGHT HAVE ALREADY TALKED ABOUT, BUT THE COUNCIL DIRECT AND EXPANDED THE SCOPE.
UM, THE, UH, IT EXCEEDED THE BUDGET.
THE ALTERNATIVE FUNDING OPTIONS DIDN'T MATERIALIZE.
PLEASE KNOW, THE FRIENDS OF THE DOHERTY, UH, CENTER ARE VERY, VERY COMMITTED TO THIS PROJECT.
HOWEVER, THEY'RE GRASSROOTS AND TRYING TO RAISE AN, UH, $30 MILLION IS JUST NOT SOMETHING IN THEIR WHEELHOUSE, RIGHT? THAT'S A LOT OF MONEY.
EVEN FOR THE, UH, OUR PARTNERS THAT ARE THE BEST FUNDRAISING PARTNERS, UH, 30 MILLION IS A HUGE ASK.
AND SO, AS THOUGH, AS MUCH AS THEY ARE COMMITTED TO THIS PROJECT, THAT JUST WASN'T SOMETHING THAT THEY WERE ABLE TO TAKE ON.
UM, WE TALKED A LITTLE BIT ABOUT, UH, THE 10 YEARS OF PLANNING AND DESIGN THAT THAT HELPS.
TIME IS MONEY FOR US IN CONSTRUCTION.
AND SO THAT ADDED TO THIS, AND IN DECEMBER OF 2022, THERE WAS THE ASK THAT WE GO AHEAD AND BUILD SOMETHING.
AND I JUST WANNA BRING THIS TO YOUR ATTENTION.
WE WERE ASKED TO GO AHEAD AND BUILD SOMETHING.
UH, THE COUNCIL UNANIMOUSLY PASSED THE RESOLUTION AND THEN JUST ASK FOR THE FUNDING, THE ADDITIONAL FUNDING NEEDED IN THE 2024 BOND.
BUT WE KNOW THAT WE'RE NOT ABLE TO HAVE A 2024 BOND.
AND FOR ME, UH, MY RECOMMENDATION BRINGING FORWARD IS THAT IT WAS VERY, UH, IT MAKES ME VERY ANXIOUS TO BUILD SOMETHING BECAUSE THE ENTIRE DESIGN IS PREDICATED ON A PARKING GARAGE THAT IS UNDERNEATH.
AND SO IF WE WERE TO BUILD SOMETHING RIGHT NOW AND WAIT UNTIL A FUTURE BOND, WE WOULD HAVE A CEMENT BUILDING THAT WAS NOT USABLE AT THIS PARTICULAR POINT IN TIME.
WE'D HAVE TO WAIT FOR THE 2026 BOND.
AND WE'RE NOT SURE IF VOTERS WILL VOTE FOR, FOR THAT BOND.
I MEAN, I HOPE THAT THEY WILL.
I THINK THAT WE HAVE HAD A LOT OF SUPPORT, BUT I CAN'T COUNT ON SOMETHING.
AND WE WOULD STILL HAVE A BUILDING OVER AT THE DOUGHERTY ART CENTER THAT WE'VE BEEN, UM, FIXING OVER THE NUMBER OF YEARS THAT'S BEGINNING TO FAIL AND NO PLACE FOR THE PROGRAMS. AND SO THAT BRINGS US TO THE RECOMMENDATION, WHICH IS FOR THE PARKS AND RECREATION DEPARTMENT TO WORK WITH THE CAPITAL DELIVERY SERVICES TEAM TO DELIVER A NEW D FACILITY USING THE MONEY THAT WE HAVE, AND WITH THAT MONEY THAT WE HAVE, UM, MAKE SURE WE'RE DESIGNING IN SUCH A WAY THAT WE COULD ADD PHASES.
UH, AND IF WE WEREN'T ABLE TO MEET ALL OF THE NEEDS OF THE COMMUNITY FOR THE DOHERTY ART CENTER IN A SINGLE DESIGN, THAT WE WOULD BE ABLE TO ASK FOR FUNDING IN 2026 OR, OR BOND PROGRAMS BEYOND THAT.
BUT WE WOULD HAVE A USABLE SPACE AT THE TIME WHEN CONSTRUCTION WAS COMPLETED WITH THE, WITH THE ORIGINAL 28 MILLION THAT WE'VE RECEIVED.
SO WITH THAT, UH, I AM HERE TO, UH, TELL YOU ABOUT THE NEXT STEPS THAT I AM RECOMMENDING, WHICH IS TO INFORM OUR STAKEHOLDERS AND OUR COMMUNITY.
UH, OBVIOUSLY WE, UH, CAME TO YOU FIRST, UH, CONDUCT ADDITIONAL COMMUNITY ENGAGEMENT TO INFORM A REDESIGN.
AND PERHAPS THERE'S A POSSIBILITY THAT WE COULD USE SOME OF THE DESIGN THAT'S ALREADY, UM, THAT'S ALREADY BEEN IN OUR HANDS THAT WE ALREADY HAVE AVAILABLE TO US.
WE WOULD COMPLETE, UH, ANOTHER BOARD AND COMMISSION PROCESS, AND THEN WE WOULD PERMIT THE PROJECT FOR CONSTRUCTION.
ULTIMATELY, AGAIN, THE GOAL IS TO BRING FORWARD SOMETHING THAT'S USABLE SO THE COMMUNITY COULD IMMEDIATELY MOVE PROGRAMMING FROM THE DOHERTY ART CENTER, AT LEAST A PORTION OF IT OVER INTO, UH, THIS NEW FACILITY AND BE IN A SAFE AND WELCOMING LOCATION.
AND I AM AVAILABLE FOR QUESTIONS.
UM, MEMBERS QUESTIONS, UH, COUNCIL MEMBER ALLISON ALTER.
UM, THANK YOU, DIRECTOR MCNEELY, I KNOW THIS IS NOT NEWS THAT YOU WANTED TO DELIVER, UM, THIS MORNING, AND I APPRECIATE YOUR KINDER ON THIS.
UM, GIVEN THE ITEMS THAT WE HAVE ON THIS WEEK'S AGENDA RELATED TO THE TOKYO ELECTRON CAMPUS, UM, I'M WONDERING TO WHAT EXTENT WE MIGHT ALSO CONSIDER, UM, PIVOTING ON THE LOCATION.
AND I HAVE NO IDEA IF THAT WOULD BE A GOOD LOCATION.
IT JUST SEEMS LIKE IT'S AN AREA THAT MIGHT BE LESS CONSTRAINED THAN WHERE
[01:15:01]
WE ARE CURRENTLY, UM, PLACING THE ART CENTER.AND JUST WANTED TO ASK IF THERE COULD BE SOME CONSIDERATION OF WHETHER THAT LOCATION WOULD BE GOOD OR NOT.
I HAVE, I DON'T HAVE, YOU KNOW, OBVIOUSLY WE HAVEN'T DONE ANY, ANY, UH, COMMUNITY ENGAGEMENT ON THAT AND, BUT THERE IS A LOT OF LAND THERE.
IT WOULD BE RIGHT ON, UM, THE PROJECT CONNECT LINES, UM, IN AN AREA THAT WOULD BENEFIT FROM THE ART CENTER BEING THERE.
AND IT JUST MIGHT BE LESS COMPLICATED AND NOT REQUIRE THE UNDERGROUND GARAGE.
YOU MIGHT BE ABLE TO, UM, COMPARE WITH, WITH, UM, PARKING ACROSS, YOU KNOW, CITY USES, UM, FOR DIFFERENT TIMES OF DAY WHEN THE CENTER WOULD BE MORE IN USE.
UM, THAT MIGHT BE BENEFICIAL AS WELL.
SO, UH, WHAT I WILL TELL YOU ABOUT MY, UH, THE PREVIOUS COMMUNITY ENGAGEMENT WAS THAT THE INDIVIDUALS WHO ENJOY GOING TO THE DAC COME FROM ALL OVER, UH, OUR, UH, OUR CITY.
SO THEY'RE NORTH, SOUTH, EAST AND WEST.
AND THAT THE CENTRAL, THE MORE CENTRAL THE LOCATION, THE MORE, UH, MORE SUPPORT THAT WE RECEIVED.
WHEN WE, UH, EXPLORED AS FAR SOUTH AS THE ANN RICHARDS SCHOOL, WE HAD SOME PUSHBACK, UH, ABOUT THAT LOCATION BEING TOO FAR SOUTH FOR THE INDIVIDUALS WHO WERE TRYING TO COME NORTH.
WHEN WE LOOKED, UH, I'M GONNA SAY THIS OUT LOUD, AND WHEN WE LOOKED AT THE PALM SCHOOL AS AN OPTION, AT ONE PARTICULAR POINT IN TIME IN EARLY 2016 OR SO, UH, WE HAD PUSHBACK ABOUT, UH, PARKING AND THE FACT THAT IT WOULD BE TOO CONGESTED DOWNTOWN.
WHEN WE LOOKED AT A LOCATION UP NORTH, UH, JUST NORTH OF, I THINK IT WAS, UH, 35, 30 FIFTH STREET, IT WAS A, A COMPLEX THAT HAD A A, AN OFFICE BUILDING THAT WAS FOR SALE.
WE HAD PUSHBACK FROM THE INDIVIDUALS DOWN SOUTH.
SO I SAY ALL THAT TO SAY WE COULD LOOK AT EVERYTHING, BUT I CAN TELL YOU THE MORE CENTRAL THE LOCATION, THE MORE, UH, THE MORE THAT THE COMMUNITY WILL BE IN SUPPORT OF THAT.
SOMETIMES THOUGH, I'M SURE THE COMMUNITY'S IN SUPPORT OF A BRAND NEW DECK RIGHT NOW.
SO SOMETIMES WE HAVE TO MAKE THOSE TOUGH DECISIONS REGARDLESS.
AND SO WE WILL EXPLORE EVERY AND ALL OPTION.
COUNCIL MEMBER, ANY OTHER COUNCIL MEMBER RYAN, ALTER THE, AS YOU LOOK AT RECOUPING, IT SEEMS JUST BASED ON YOUR SLIDE ABOUT ADDITIONAL COSTS, IT WOULD SEEM TO BE UNDERGROUND PARKING WOULD, WOULD ALMOST HAVE TO BE OFF THE TABLE.
IS THAT A FAIR ASSESSMENT? THAT IS A FAIR ASSESSMENT.
AND SO IF THAT ELEMENT IS REMOVED, AND I'M LOOKING ALSO AT THE, THE DIRECTION ABOUT THE SITE DESIGN AND, AND CONSTRAINTS, UM, YOU KNOW, YOU ELIMINATE THOSE TWO THINGS.
THAT'S 23 OF YOUR $30 MILLION GAP RIGHT THERE.
I, I ASSUME THAT'S KIND OF THE DIRECTION YOU'RE GONNA LOOK, IS KIND, PRESERVE AS MUCH BUILDING, USABLE BUILDING AS YOU CAN, AND THEN FIGURE OUT KINDA WHAT, WHAT RIGHT SIZING NEEDS TO BE DONE.
IS THAT RIGHT? I, I BELIEVE, AS I UNDERSTAND IT, 'CAUSE I'M NOT AN ARCHITECT, BUT THE TEAM MEMBERS WHO ARE ENGINEERS AND ARCHITECTS, THAT YOU HAVE TO DO A REDESIGN BECAUSE EVERYTHING IS PREDICATED ON, ON BUILDING ON TOP OF A FOUNDATION THAT IS AN UNDERGROUND GARAGE.
AND SO TO THE POINT THAT YOU'RE MAKING SOME OF THE DESIGN ELEMENTS, LIKE THE LOOK AND THE THINGS THAT PEOPLE ARE VERY INTERESTED IN, UH, BELIEVE CAN STAY, BUT THEN THE FOUNDATION SETTING AND ALL OF THAT WILL HAVE TO BE RETOOLED, WHICH JUST GIVES US A CHANCE TO GO BACK AND CHECK AND SAY, IS THIS WHAT WE WANT? OR DO WE WANNA SHIFT IT AROUND A LITTLE BIT SINCE WE DON'T HAVE TO PREDICATE IT ON THE UNDERGROUND GARAGE? UH, SO SOME OF THE ELEMENTS OF THE DESIGN, I THINK MIGHT BE ABLE TO BE REUSED, BUT TO THE EXTENT THAT IT HAS TO BE COMPLETELY RE PERMITTED AND OBVIOUSLY RE-ENGINEERED, UH, THAT WILL TAKE A LITTLE BIT OF TIME.
AND THEN ONCE Y'ALL DO HAVE THAT REDESIGNED, WILL WE ALL COME BACK AND, AND I CAN'T REMEMBER THE PROCESS, BUT LIKELY YES.
I APOLOGIZE FOR BEING IGNORANT ON THAT.
WE'LL AT LEAST BE GIVING YOU MEMOS,
AND I'M JUST CURIOUS, HOW BIG IS WHAT WE HAVE PLANNED? LIKE HOW MANY? ABOUT 4,500 SQUARE FEET? NO.
WE COULD HAVE BUILT THAT FOR 28 MILLION.
COUNCIL MEMBER, MAYOR PRO TIM, I JUST WANNA THANK STAFF FOR YOUR PERS PERSISTENCE IN THIS PROCESS.
I WAS ACTUALLY ON THAT BOND COMMITTEE BACK IN 2012 THAT RECOMMENDED THAT INITIAL FUNDING.
UM, IT'S A REALLY IMPORTANT PROJECT AND I THINK ULTIMATELY IF WE ARE ABLE TO MAKE IT HAPPEN WITH THIS REVISED APPROACH, UH, CITY MANAGER, I THINK THAT WOULD BE A REAL PLUS FOR THE CITY.
YEAH, MAYOR COUNCIL AND I THANK STAFF REALLY FOR THE DILIGENCE.
I THINK WE HEAR, WE HEAR WHAT THE COUNCIL'S SAYING.
I THINK ONE OF THE THINGS THAT, UH, WE'VE TRIED TO DO WITH THE CAPITAL DELIVERY, UH, DEPARTMENT THAT WE'VE CREATED IS TO TRY TO REALLY DESIGN PROJECTS WITHIN THE BUDGET THAT'S
[01:20:01]
ALLOWED.AND THIS PROJECT WAS ALLOWED TO ESCALATE BEYOND, BEYOND OUR MEANS.
AND HENCE WE'RE WE, WE'VE BEEN, UH, HAVE A FACILITY THAT'S SUBSTANDARD AND WE HAVEN'T BEEN ABLE TO GET GOING.
AND SO THE ONLY CAUTION I HAVE IS IF WE COME BACK WITH WHATEVER THIS NEW LOOK LOOKS LIKE, WHAT I WOULD WANT TO CAUTION THE COUNCIL IS NOT TO BEGIN TO, TO, TO REDESIGN IT FROM THE DIOCESE AND THEN, AND THEN WE END UP HAVING THE, THE, AS THEY SAY IN SPANISH
SO WE JUST WANNA KEEP FROM HAVING THAT.
OKAY, MEMBERS, THAT CONCLUDES ALL THE ITEMS THAT WE HAVE, UH, ON THE AGENDA FOR THIS, UH, CITY COUNCIL WORK SESSION.
AGAIN, I ALSO WANNA SAY THANK YOU, THE STAFF.
I DIDN'T MEAN TO ABRUPTLY CUT THAT OFF, BUT, UH, I APPRECIATE Y'ALL AND, UH, ON ALL OF THE, THE ALL THAT'S BEEN PRESENTED TODAY, UH, SINCE THERE'S NO OTHER BUSINESS TO COME BEFORE THE CITY COUNCIL AT THIS UH, POSTED WORK SESSION.
WITHOUT OBJECTION, WE WILL ADJOURN THE WORK SESSION.
IT IS STILL MARCH 19TH, 2024 AND IT'S 10:21 AM THANKS EVERYBODY.