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[00:00:01]

GOING TO BE HERE, BUT SHE IS, DAVID. YEAH. GOOD MORNING AND WELCOME TO THE AUGUST 27TH,

[INVOCATION]

2020 CITY COUNCIL MEETING. WE'RE GOING TO BEGIN WITH THE INVOCATION FROM COUNCIL MEMBER HAWKINS, FOLLOWED BY THE PLEDGE, IF YOU'LL PLEASE STAND. GOOD MORNING. BOW WITH ME IF YOU WILL, PLEASE. DEAR HEAVENLY FATHER, WE THANK YOU FOR THIS DAY AND THE OPPORTUNITY TO SERVE OUR COMMUNITY. WE PLEASE ASK THAT YOU GRANT US THE UNITY IN OUR BLESSING. I'M SORRY.

UNITY IN OUR DECISIONS, WISDOM IN OUR DISCUSSIONS AND GUIDANCE TO LEAD WITH INTEGRITY AND GRACE. BLESS THE CITY, OUR CITIZENS, OUR CITY EMPLOYEES, THIS COUNCIL AND EVERYONE THAT'S GATHERED HERE TODAY. WE ASK THESE BLESSINGS IN YOUR DAUGHTER AND SON. JESUS'S NAME.

AMEN. AMEN. 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. ALRIGHT, WE'RE GOING TO BEGIN WITH THE MINUTES FROM JULY THE 9TH, 2025. MOVE

[MINUTES]

TO APPROVE. SECOND AND A MOTION BY WIND. SECOND BY HAWKINS. ALL THOSE IN FAVOR SAY AYE. AYE.

OPPOSED? MOTION CARRIES. WE'RE GOING TO COME DOWN FOR ONE SERVICE AWARD. I DON'T KNOW WHO.

[AWARDS]

ALRIGHT. WE HAVE ONE SERVICE AWARD TODAY. TIMOTHY CRAVENS, CONSTRUCTION SUPERINTENDENT.

WASTEWATER, 25 YEARS OF SERVICE. COME ON.

WON'T GIVE A SPEECH? NO. JUST THANK YOU FOR YOUR 25 YEARS. AND WE HOPE YOU MAKE IT ANOTHER TEN. WELL. THANK YOU. THANK YOU.

[Z -1 PD25-014 MEZAYEK BUILDING LTD (2571 WEST GRANDE BOULEVARD) Request that the City Council consider adoption of an Ordinance approving a zone change from AG, Agricultural District to PMF, Planned Multi-Family District with a final site plan.]

ALRIGHT. ZONING Z1. GOOD MORNING, MAYOR AND COUNCIL. GOOD MORNING. THE FIRST ITEM WE HAVE IS A ZONING ZONE CHANGE REQUEST FROM AGRICULTURAL DISTRICT TO PM'S PLANNED MULTIFAMILY DISTRICT. THIS IS TO ALLOW FOR THE DEVELOPMENT OF TOWNHOMES ON THIS PROPERTY.

THIS IS AT CROW ROAD AND OAK HILL BOULEVARD. AS YOU SEE HERE, SURROUNDING PROPERTIES TO THE EAST ARE CURRENTLY AGRICULTURAL, AGRICULTURALLY ZONED AND COMMERCIAL, AND THEN TO THE SOUTH WAS RECENTLY REZONED TO COMMERCIAL. USE. TO THE WEST IS ALSO MULTIFAMILY WITH A SIMILAR TYPE DEVELOPMENT, AND THEN TO THE NORTH THERE IS SOME RESIDENTIAL, ONE OF THEM, ONE OF WHICH THERE IN ORANGE OR BROWN IS THE SIMILAR TYPE DEVELOPMENT AS WELL FOR FOR TOWNHOMES. THIS REQUEST WOULD AMEND THE FUTURE LAND USE GUIDE TO TOWNHOME OR TOWNHOUSE GARDEN APARTMENT. THE APPLICANT HAS SUBMITTED A SITE PLAN AS YOU SEE HERE, WHICH IS IN TWO PHASES. THE APPLICANT PLANS TO DEVELOP 100 126 ATTACHED TOWNHOMES AND A DENSITY OF 5.5.4 UNITS PER ACRE. THERE IS A WATER DETENTION AREAS AND A KIND OF A WATER FEATURE THROUGH THE MIDDLE OF THE PROPERTY, WHICH PROVIDES OPEN SPACE FOR THE THE RESIDENTS. EACH UNIT WILL BE ON AN INDIVIDUAL LOT AND SO THEY THEY CAN BE OWNER OCCUPIED, BUT THEY WILL BE ATTACHED UNITS. SOME OF THEM ARE OR FOREIGN UNIT ATTACHED UNITS, SOME ARE TOO. SO THERE'S A RANGE WITHIN THE DEVELOPMENT. THE DEVELOPMENT WILL HAVE ACCESS ON BOTH CROW ROAD AND

[00:05:06]

OAK HILL BOULEVARD IN THE FUTURE. OF THE NOTICES THAT WERE SENT OUT TO THE NEIGHBORS WITHIN 200FT, TWO WERE RETURNED AND ONE WAS RETURNED IN FAVOR. TWO WERE RETURNED IN OPPOSITION.

AS YOU SEE THERE IN RED. THE PROTEST CALCULATION WAS 1.25%. THE CONCERN WAS WITH ADDITIONAL TRAFFIC WITHIN THE AREA. IF THIS PROPERTY WERE TO BE DEVELOPED AS SUCH, THE THE TWO PROPERTIES TO THE NORTH THAT WERE IN OPPOSITION ARE ARE IN A SIMILAR TYPE DEVELOPMENT AS AS WHAT'S BEING PROPOSED HERE. THE PLANNING COMMISSION, BY A70 VOTE, RECOMMENDED APPROVAL OF THIS REQUEST. ANY QUESTIONS FOR KYLE? MOVE TO APPROVE. SECOND. MOTION BY HAWKINS. SECOND BY WIND. ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED. MOTION CARRIES Z2.

[Z -2 C25-003 MARCUS WYNNE AND STEPHANIE MURPHY (AN UNIMPROVED ALLEY RIGHT-OF-WAY) Request that the City Council consider adoption of an Ordinance approving the closure of an unimproved alley right-of-way adjacent to 1907 North Glenwood Boulevard.]

THIS IS A REQUEST FOR A CLOSURE OF ALLEY. RIGHT OF WAY. THIS IS OFF GLENWOOD BOULEVARD. NORTH.

NORTH. GLENWOOD, AS YOU SEE HERE, IS JUST SOUTH OF MARTIN LUTHER KING BOULEVARD. AND SO THE THE PROPERTY THERE IN GREEN IS AN UNIMPROVED ALLEY RIGHT OF WAY. THE APPLICANT PLANS TO INCORPORATE THIS INTO THEIR PROPERTY SO THEY CAN CONTINUE TO MAINTAIN IT AND HAVE IT AS PART OF THEIR LOT. IT'S CURRENTLY UNDEVELOPED. THERE IS NO NO ALLEY WITHIN IT. AND SO THE PLANNING COMMISSION, BY UNANIMOUS VOTE, RECOMMENDED APPROVAL, SUBJECT TO THE APPLICANT REPLANTING THE PROPERTY WITHIN SIX MONTHS. ANY QUESTIONS FOR KYLE? I MOVE TO APPROVE Z2 SECOND. GOT A MOTION BY MARK. SECOND BY NICHOLAS. ANY FURTHER DISCUSSION? ALL

[Z -3 Z25-017 TUAN ANH VO (935 SOUTH PEACH AVENUE) Request that the City Council consider adoption of an Ordinance approving a zone change from R-1B, Single-Family Residential District to R-2, Two-Family Residential District.]

THOSE IN FAVOR SAY AYE. AYE. OPPOSED. MOTION CARRIES Z3. THIS IS A REQUEST FOR A ZONE CHANGE FROM R-1 SINGLE FAMILY TO TWO FAMILY ON SOUTH PEACH AVENUE. AND THIS IS TO ALLOW FOR THE DEVELOPMENT OF A DUPLEX ON THE PROPERTY. THE SURROUNDING PROPERTIES ARE CURRENTLY ZONED R2, WHICH IS WHAT THE APPLICANT IS REQUESTING. THERE ARE A LOT.

MANY OF THE PROPERTIES ARE CURRENTLY UNDEVELOPED. THERE'S SINGLE FAMILY HOMES TO THE WEST, AND THERE'S A PARK TO THE EAST. THIS REQUEST WOULD AMEND THE FUTURE LAND USE GUIDE TO SINGLE FAMILY AND SINGLE FAMILY ATTACHED. YOU SEE HERE INSIDE THE CORNER OF PEACH AND JACKSON STREET. AND AGAIN, THE APPLICANT PLANS TO DEVELOP A DUPLEX ON THE PROPERTY, WHICH WILL ALSO ADD ONE ADDITIONAL UNIT TO THE TO THE HOUSING INVENTORY WITHIN THE NORTH END, WHICH IS RECOMMENDED BY THE THE COMPREHENSIVE PLAN OF THE NOTICES THAT WERE SENT OUT.

NONE WERE RETURNED IN FAVOR OR IN OPPOSITION TO THIS REQUEST, AND THE PLANNING COMMISSION RECOMMENDS APPROVAL. ANY QUESTIONS OR COMMENTS FOR KYLE? MOVE TO APPROVE. SECOND, GOT A MOTION BY HAWKINS. SECOND BY CURTIS. ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR SAY AYE. AYE.

[Z -4 PD25-017 GENECOV PROPERTIES INC (8667 SOUTH BROADWAY AVENUE) Request that the City Council consider adoption of an Ordinance approving a PMXD-1, Planned Mixed-Use District-1 final site plan amendment.]

OPPOSED? MOTION CARRIES FOUR. THE NEXT ITEM IS OUR REALLY INVOLVED IN THE SAME SAME DEVELOPMENT. BUT I'LL GO THROUGH ONE EACH ONE INDIVIDUALLY. AND SO THE FIRST REQUEST HERE IS A REQUEST FOR A SITE PLAN. THE FINAL SITE PLAN FOR THIS PROPERTY HERE ON WEST CUMBERLAND ROAD. IT'S WITHIN THE THE FUTURE PARKSIDE DEVELOPMENT, JUST AT THE SOUTHWEST CORNER OF CUMBERLAND AND SOUTH BROADWAY. THE APPLICANT PLANS TO ESTABLISH A SITE PLAN TO ALLOW FOR A A WHOLESALE RETAIL STORE. HERE YOU HAVE A SITE PLAN AS YOU SEE RIGHT THERE. AND SO THIS REQUEST IS TO APPROVE THIS THIS LAYOUT FOR THE THE PROPERTY IS CURRENTLY ZONED PMC'S D1 AND ZONED THAT WAY. BACK IN 2019. THE SITE PLAN DOES INCORPORATE THE REQUIRED 15 FOOT UNDISTURBED GREENBELT ALONG CUMBERLAND ROAD. AND SO IT'S INCORPORATING IT INTO THIS DEVELOPMENT. THEY ACTUALLY HAVE MORE OF THAT AREA BEING BEING SAVED FOR GREEN SPACE ON THE NORTH SIDE TO AGAIN, THAT WAS INTENDED TO PROVIDE SOME TRANSITION BETWEEN THE THE HOMES THAT ARE NORTH OF CUMBERLAND AND THE COMMERCIAL DEVELOPMENT ON THIS PROPERTY. SO THIS IS WHAT'S BEING PROPOSED AGAIN, OVER 100,000 SQUARE FOOT RETAIL DEVELOPMENT. AND SO THIS REQUEST IS TO ESTABLISH THE SITE PLAN AS PART OF THE ZONING FOR THE PROPERTY. THE NOTICES THAT WERE SENT OUT, TWO WERE RETURNED IN OPPOSITION FROM THE SAME OWNER ON THE NORTH SIDE THERE. AND THEY OWN BOTH BOTH THOSE PROPERTIES. THE PROTEST CALCULATION WAS 2.7%, AND THE CONCERN WAS JUST THE AS THE THE PROPERTY TO THE SOUTH

[00:10:09]

DEVELOPS AND CONCERNED ABOUT ADDITIONAL TRAFFIC AND KIND OF THE CHANGE IN THAT IN THAT AREA.

BUT I'M NOT SURE THEY WERE AWARE AT THE TIME THAT THAT 15 FOOT UNDISTURBED GREENBELT IS ALSO BEING PRESERVED WITH THIS DEVELOPMENT. SO THAT'S STILL BEING HONORED AS PART OF THIS.

AND SO THAT SHOULD ACT TO MITIGATE ANY VISUAL EFFECTS OF WHAT'S OCCURRING SOUTH OF CUMBERLAND. THE PLANNING COMMISSION, BY A70 VOTE, RECOMMENDED APPROVAL. ANY QUESTIONS FOR KYLE? YEAH, KYLE. SO WHEN WE DEVELOPED THIS SECTION, HOW MANY ENTRANCES AND EXITS WILL BE HERE? WE'VE GOT THE ONE GOING TO CUMBERLAND. IT LOOKS LIKE TWO GOING OUT TO 69.

IS THAT CORRECT? YEAH. SO THIS THIS DEVELOPMENT HERE WILL ACCESS THE THE NORTH SOUTH COLLECTOR AND PARKSIDE ROAD ONLY AND WILL NOT HAVE SEPARATE ACCESS ONTO CUMBERLAND ROAD.

THE ENTIRE DEVELOPMENT AS IT IS WILL JUST, JUST HAVE THE ONE ROAD CONNECTION TO CUMBERLAND.

THERE WILL BE SOME SHARED SHARED DRIVEWAYS DOWN BROADWAY. YOU SEE TWO THERE. I THINK THERE MIGHT BE 1 OR 2 MORE SOUTH OF HERE. AND SO BUT IN TERMS OF THIS, THIS ACTUAL, YOU KNOW, DEVELOPMENT ON THIS PROPERTY HERE IS THEY THEY DON'T HAVE ANY ADDITIONAL ACCESS TO, TO CUMBERLAND. SO ONE WAY IN, ONE WAY OUT. NO. SO YOU'LL HAVE WE HAD LOOKED ON CUMBERLAND AS A POSSIBLE ROAD ON THE WHAT WE'LL SAY IS THE THERE WE GO. THANK YOU. ON THE WEST SIDE OF THAT, AS YOU GET CLOSER TO DAYSPRING METHODIST CHURCH, THE DROP OFF OF THE PROPERTY, THE TOPOGRAPHY THERE IS GETS IS PRETTY STEEP IN THAT SPOT AS WELL. SO MADE THE ROAD OR EVEN A DRIVE ACCESS POINT ON THE BACK SIDE OF THE LOCATION THAT YOU'RE SEEING THERE IN PRACTICAL. SO YOU HAVE THE ROAD PIECE THERE. NOW YOU DO HAVE BECAUSE OF THE PAD SITES, FLIP IT TO THE NEXT ONE. AND THIS IS THE ONES YOU'RE SEEING FOR BROADWAY, RIGHT. THE PAD SITES THERE. THEN THE EAST SIDE OF PARKSIDE DRIVE HAVE ACCESS. THERE'S YOU SEE THE TWO THERE.

AND THEN I THINK THERE IS A THIRD ONE THAT'S PART OF THIS FIRST PHASE OF THIS DEVELOPMENT ALSO, THEN HAS ACCESS ON THE BROADWAY FROM THERE. AND I THINK THE PADS AND I KNOW THE DEVELOPERS HERE, SO YOU PROBABLY MUCH MORE ATTUNED TO ANSWERING THESE QUESTIONS, BUT I THINK THAT THE PAD SITES ARE SOMETHING WE WANT TO TRY TO MOVE FORWARD WITH AT THE TIME.

THEY'RE ALSO BUILDING THIS. SURE. AND CENTENNIAL PARKWAY WILL ALSO COME INTO THE DEVELOPMENT AS WELL, RIGHT? YEAH. BUT WHEN WE OPEN THIS AS AS IT'S MOVING FORWARD RIGHT NOW, THERE'S BASICALLY ONE ENTRY AND ONE EXIT OFF CUMBERLAND ONLY. RIGHT. DO YOU WANT TO TRY TO ANSWER THAT? HELLO. MY NAME IS TREY BREWER, PRESIDENT, 50 DOMINION PLAZA, AND THE VICE PRESIDENT OF REAL ESTATE AT THE TENNECO GROUP. SO MR. BROUSSARD IS CORRECT.

THERE'S ONE ENTRANCE UP ON CUMBERLAND ROAD WHERE PARKSIDE DRIVE WILL COME DOWN TO, JUST ACROSS WHERE DAIRY QUEEN IS, AND THAT WILL BE A FOUR WAY TRAFFIC LIGHT. WE DO HAVE PLANS TO CONSTRUCT. IF YOU'RE LOOKING NORTH TO SOUTH, THERE'S ONE PAD SITE ADJACENT TO CUMBERLAND ROAD AND THERE'S ONE SOUTH OF THAT. THERE WILL BE AN ACCESS DRIVE FROM PARKSIDE TO BROADWAY.

AND THAT WE THINK IF YOU'RE COMING SOUTH FROM BROADWAY TO BJ'S, THAT'S WHERE YOU'RE GOING TO TURN IN RIGHT OVER TO BJ'S. THAT'LL BE THE MAIN ENTRANCE. OF COURSE, WE WE WOULD APPRECIATE ANOTHER ACCESS DRIVE TO PAD SITE SOUTH, BUT THAT THAT HASN'T BEEN APPROVED YET JUST SO THE INGRESS AND EGRESS. BUT RIGHT NOW THERE'LL BE TWO ACCESS POINTS ON BROADWAY AND ONE ON CUMBERLAND. PHASE TWO LATER WILL HAVE 2 OR 3 MORE ACCESS POINTS. ACCORDING TO THE PRELIMINARY PLAT. SO WE'RE CALLING THIS PHASE ONE AND THE TWO ENTRIES OFF OF BROADWAY THAT WE SEE ONE RIGHT THERE. AND THE NEXT ONE WILL BE BUILT WHEN THIS IS OPENED OR WILL NOT.

WE WOULD APPRECIATE APPROVAL OF THAT ONE, BUT THAT THAT HASN'T BEEN APPROVED AT THIS TIME.

OKAY. BUT THE ONE SOUTH OF THAT CENTENNIAL WILL BE A FULL FOUR WAY TRAFFIC LIGHT. YES, SIR. SO THE ROAD HE'S TALKING ABOUT, THE ONE THAT GOES PARKSIDE DRIVE. WHEN YOU GET TO CUMBERLAND, CAN YOU TURN LEFT OR RIGHT, OR IS IT A RIGHT TURN ONLY? WHICH WAY ARE YOU COMING? RIGHT THERE. WHERE THE POINTER IS. WHEN YOU GET UP TO CUMBERLAND, YOU'RE COMING OUT.

GOING OUT? I BELIEVE YOU CAN DO RIGHT OR LEFT. IS THERE A LOT THERE? NO. RIGHT. IT'S TOO CLOSE TO THE OTHER TRAFFIC SIGNAL FOR ANY TYPE OF CONTROLLED ACCESS AT THAT POINT.

SO YOU CAN SO YOU CAN SEE KIND OF THE CONTROLLED ACCESS PIECES THAT YOU HAVE THAT ARE FOR THE RIGHT TURN IN OFF OF CUMBERLAND, HEADED SOUTH ONTO PARKSIDE DRIVE, COMING OFF OF PARKSIDE

[00:15:07]

DRIVE, THERE IS AND YOU CAN KIND OF SEE HOW THAT COME ON PIECES THERE AS WELL. AS FAR AS SOME, WE'LL CALL THEM HOODS OR PROTECTIONS THAT ARE THERE FOR THOSE WHO ARE TURNING LEFT OFF OF PARKSIDE DRIVE ONTO WEST CUMBERLAND TO THEN TURN WEST. SO SOME OF THAT IS IS IN THERE TO HELP BREAK THAT UP. I THINK IT'S ALSO IN THERE TO HELP PREVENT TRAFFIC GOING ACROSS INTO CROOKED TRAIL ALSO, AND CREATING UNNECESSARY TRAFFIC INTO THE NEIGHBORHOOD. YEAH, THAT WAS A CONCERN OF OURS. THAT'S THE REASON WE ACTUALLY LOOKED TO SEE IF WE COULD MOVE THIS TO THE WESTERN SIDE OF THIS PROPERTY, BECAUSE OF HOW IT LINES UP WITH THE CROOKED TRAIL. BUT AS I SAID EARLIER, THAT WAS JUST IMPRACTICAL TO BE ABLE TO DO THAT. SO IT DOES LINE UP. AND THAT IS SOMETHING LONG TERM WE'LL PROBABLY HAVE TO LOOK AT. BUT EVEN FURTHER BEYOND JUST THIS CASE. SO THEN WHEN WE DO OPEN THIS DEVELOPMENT, THERE'S GOING TO BE ONE ENTRY AND ONE EXIT ONLY. WE'RE GOING TO BUILD PARKS, RIGHT. WE WILL DEFINITELY BUILD BUILD THAT. THAT'S THE CONSTRUCTION PLANS AND WE WILL BUILD CENTENNIAL IS IS JUST TO THE SOUTH OF THIS DRAWING. YEAH. YOU CAN'T SEE THE TWO PARKS. IT'S GOING TO BE LIKE AN L. SO BOTH OF THOSE WILL BE BUILT WHEN WE OPEN UP THIS. SO WE'LL HAVE GOOD CIRCULATORY. YES, SIR.

OKAY, GOOD. THANK YOU. I GOT A QUESTION OUT OF CURIOSITY, HOW MANY PARKING SPACES WILL THIS HOLD? SO THEY'RE THEY'RE PROVIDING 439. WHEN 357 ARE REQUIRED. SO THEY'RE OVER PARKED SO THEY'LL BE ABLE TO CIRCULATE PRETTY FREELY GOING IN AND OUT. I BELIEVE SO OKAY.

THANK YOU. ANY OTHER QUESTIONS FOR TREY OR I MOVE TO APPROVE SECOND. WHO'S THE WHO WAS THE SECOND? I'VE GOT A MOTION BY ME. SECOND BY CURTIS. ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR

[Z -5 PD25-016 GENECOV PROPERTIES INC (302 WEST CUMBERLAND ROAD) Request that the City Council consider adoption of an Ordinance approving a zone change from AG, Agricultural District to PMXD-1, Planned Mixed-Use District-1 with final site plan.]

SAY AYE. AYE. OPPOSED. MOTION CARRIES FIVE. DON'T GO ANYWHERE, TREY. OKAY. SO THIS IS PART OF THAT OVERALL DEVELOPMENT. BUT THIS IS A PIECE THAT WAS LEFT OUT I THINK IT WAS RECENTLY PURCHASED BY BY BY THE APPLICANT. IT'S JUST THAT LITTLE TRIANGULAR PIECE THERE.

SO THEY'RE ASKING TO REZONE THIS PIECE TO BE ONE LIKE THE REST OF IT. AND TO ALSO ESTABLISH THAT SITE PLAN FOR THAT LITTLE PORTION OF IT. AND SO AS YOU SEE HERE, IT'S THE SAME, SAME DEVELOPMENT. IT'S JUST. IT'S JUST THAT'S WHAT'S BEING TECHNICALLY APPROVED HERE IS THIS LITTLE DRIVE AREA. AND SO THE PLANNING COMMISSION RECOMMENDS APPROVAL. CORRECT QUESTIONS FOR CARL. MOVE TO APPROVE. SECOND A MOTION BY SECOND BY NICHOLAS. ANY FURTHER DISCUSSION. ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED. MOTION

[Z -6 S25-002 GENECOV PROPERTIES INC (8667 SOUTH BROADWAY AVENUE AND 302 WEST CUMBERLAND ROAD) Request that the City Council consider adoption of a Special Use Permit to allow for fuel sales.]

CARRIES C6. ALL RIGHT. AND THIS LAST PIECE. SO WITH A B IN ZONE ONE THAT THE UNIFIED DEVELOPMENT CODE ACTUALLY REQUIRES THAT ANY FUEL STATIONS HAVE A SPECIAL USE PERMIT APPROVED. I THINK THAT'S BECAUSE MANY MIXED USE DEVELOPMENTS MIGHT, MIGHT, MIGHT BE A LITTLE BIT MORE, MORE RESIDENTIAL THAN COMMERCIAL. AND THIS PARTICULAR ONE, OR IN THIS PARTICULAR CASE, IT IS A COMMERCIAL AREA. SO IT DOES MAKE SENSE TO ALLOW A FUEL STATION HERE UNDER THIS PMD, AT LEAST IN THIS, THIS PART OF IT. AND SO IT'S THE SAME AGAIN, SAME DEVELOPMENT AS WE'VE BEEN TALKING ABOUT. WE'RE REALLY ESTABLISHING THE THE ALLOWANCE FOR A FUEL STATION TO BE ON THE PROPERTY IN THIS AREA HERE. SO IT'S ON THE NORTH SIDE, JUST SOME STALLS FOR, FOR KIOSKS FOR. FOR FUELING. AND, AND SO WITH THIS REQUEST, WITH IT BEING A SPECIAL USE PERMIT AND BEING MORE OF A TYPICAL, YOU KNOW, DEVELOPMENT, COMMERCIAL DEVELOPMENT, IT'S RECOMMENDED TO APPROVE THIS FOR AN INDEFINITE PERIOD OF TIME. PLUS IT'S ALSO SUBJECT TO THAT SITE PLAN. AND SO THE THE NOTICES THAT WERE SENT OUT, WE DID RECEIVE OPPOSITION AGAIN FROM THE SAME, SAME OWNER FOR THE SAME REASONS, CONCERNED ABOUT HOW THE AREA WILL DEVELOP AND HOW THAT IMPACTS THEIR THEIR PROPERTY. BUT AGAIN, THIS SPECIAL USE PERMIT DOES NOT AFFECT THE THAT BUFFER THAT'S REQUIRED. AND SO IT MEETS ALL THE REQUIREMENTS OF WHAT WAS APPROVED BACK IN 2019. AND THE PLANNING COMMISSION RECOMMENDS APPROVAL. ANY QUESTIONS FOR CARL. SECOND GOT A MOTION BY SECOND BY NICHOLAS. ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED? MOTION CARRIES C7. OKAY. THESE NEXT

[Z -7 A25-001 LC QOZB LP (4344 MACNAB DRIVE) Request that the City Council consider adoption of an Ordinance approving the voluntary annexation of approximately 3.55 acres of land lying adjacent to the present boundary limits of the City of Tyler, located at the southeast intersection of Old Omen Road and Huntingtower Drive. Also consider recommending: A. The new boundary of the City Limits. B. The new boundary of the City Council District #5. C. The new boundary of the Tyler Extraterritorial Jurisdiction upon consent. D. That the City Manager be authorized to sign a written agreement for provision of City services per Texas Local Government Code Section 43.0672. E. Amendment of the Future Land Use Guide to reflect Townhome/Garden Apartment. F. Establishment of original zoning of PMF, Planned Multi-Family Residential District with final site plan.]

TWO ITEMS ARE ALSO RELATED, BUT I'LL GO THROUGH ONE EACH. AND THE FIRST ONE IS A REQUEST FOR

[00:20:02]

AN ANNEXATION. THIS IS BEING MADE ON BEHALF OF THE THE OWNER. SO THIS OWNER DRIVEN ANNEXATION REQUEST THIS IS ON AT 344 MCNAB. IT'S REALLY ON THE THE CORNER OF OLD BOWMAN ROAD AND COUNTY ROAD 2120. AS YOU SEE HERE, IT'S THIS THIS DEVELOPMENT WAS IT'S ACTUALLY CURRENTLY ALREADY DEVELOPED WITH. AS A DETACHED, SINGLE FAMILY DETACHED DEVELOPMENT. I'LL GO TO THE SITE PLAN OR IN THE PROPERTY. HERE THEY ARE ON A SINGLE LOT AND THE APPLICANT IS REQUESTING TO ANNEX THIS INTO THE THE PROPERTY TO, TO HAVE IT UNDER CITY ZONING, BUT ALSO HAVE CITY UTILITIES. AS WELL. THE SURROUNDING PROPERTIES ARE SOME VACANT PROPERTY RIGHT NOW.

THERE ARE WAREHOUSES TO THE STORAGE UNITS TO THE EAST, SOME TOWNHOMES TO THE NORTH, MULTI-FAMILY TO THE NORTH AS WELL. THIS IS THE SITE PLAN. SO WITH IT BEING REQUESTED TO BE PLANNED MULTIFAMILY TO ALLOW FOR THIS DEVELOPMENT OR PLAN, MULTIFAMILY WOULDN'T BE IN THE ZONING CLASSIFICATION FOR THIS DEVELOPMENT IF THEY WERE IN THE CITY. AND SO THE APPLICANT IS REQUESTING THAT AND THIS IS THE SITE PLAN THEY'VE PREPARED FOR IT. AND SO THE OF THE NOTICES THAT WERE SENT OUT, NUMBER RETURNED IN FAVOR OR IN OPPOSITION TO THIS ANNEXATION REQUEST. AND THE PLANNING COMMISSION, BY A70 VOTE, RECOMMENDED APPROVAL. THE ANNEXATION, WHICH ESTABLISHES THE NEW CITY LIMITS, ESTABLISHES THE NEW BOUNDARY OF CITY COUNCIL DISTRICT NUMBER FIVE. AND ALSO WILL AUTHORIZE THE CITY MANAGER TO SIGN A WRITTEN AGREEMENT FOR THE PROVISIONS OF CITY SERVICES, WHICH IS REQUIRED BY THE TEXAS LOCAL GOVERNMENT CODE. IT WILL ESTABLISH THE FUTURE LAND USE GUIDE TO REFLECT TOWNHOME, GARDEN APARTMENT, AND THEN IT WILL ALSO ESTABLISH THE ZONING AS PMF PLAN MULTIFAMILY.

SUBJECT TO THIS, THE SITE PLAN YOU SEE HERE. ANY QUESTIONS FOR KYLE? YEAH. KYLE. WILL MCNAB DRIVE BE BROUGHT INTO THE CITY? IT LOOKS TO ME LIKE IT'S JUST THE WESTERN SIDE OF MCNAB, BUT WE'LL BE BRINGING BRING THE WHOLE STREET INTO THE CITY LIMITS. THE ANY ANY COUNTY ROAD OR. YEAH, THE THE REQUEST WOULD HAVE OR THE ANNEXATION LAWS TO REQUIRE THAT ANY ADJACENT STREETS ARE ALSO ANNEXED AS WELL. SO I'LL MOVE TO APPROVE SECOND. SECOND. GOT A MOTION BY NICHOLS. SECOND BY CURTIS. ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED.

[Z -8 PD25-015 LC QOZB LP (4344 MACNAB DRIVE) Request that the City Council consider adoption of an Ordinance approving a zone change from R-1A, Single-Family Residential District to PMF, Planned Multi- Family District with final site plan.]

MOTION CARRIES TO. SO THIS NEXT REQUEST IS, IS TO REZONE PART OF THAT PROPERTY THAT IS CURRENTLY IN THE CITY LIMITS FROM THE R-1A INTO THE PLANNED MULTIFAMILY. AGAIN, THIS THIS LITTLE STRIP HERE THAT IS ACTUALLY IN THE CITY LIMITS. AND SO THE REQUEST HERE IS TO CLEAN THAT UP AND TO REZONE THAT TO, TO MATCH WHAT WAS JUST ANNEXED. AND YOU CAN SEE HERE THIS IS THAT THAT SCRIPT THAT'S ACTUALLY INSIDE THE CITY LIMITS THAT THEY WILL NEED TO REZONE THE PLAN MULTIFAMILY IN ACCORDANCE WITH THIS SITE PLAN, WHICH ESSENTIALLY MATCHES WHAT THEY'VE ALREADY BUILT. AND SO THE, THE, THE OF THE NOTICES THAT WERE SENT OUT NEVER RETURNED IN FAVOR OR OPPOSITION. AND THE PLANNING COMMISSION RECOMMENDS IT RECOMMENDS APPROVAL OF THE ZONE CHANGE FROM R1, A TO PMF. ANY QUESTIONS FOR KYLE? MOVE TO APPROVE. SECOND, GOT A MOTION BY SECOND BY WINNING. ANY FURTHER DISCUSSION. ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED. MOTION CARRIES. THANKS, KYLE. THANK. H1, MR. BROUSSARD. GOOD

[H-1 Request that the City Council consider conducting a public hearing on the proposed Fiscal Year 2025-2026 Annual Budget and on the proposed property tax rate of $0.236452 per $100 of taxable property value.]

MORNING. GOOD MORNING. GOOD MORNING INDEED. MORNING, MAYOR WARREN, CITY COUNCIL, THIS MORNING. WE ARE HERE FOR THE NEXT STEP IN THE ANNUAL BUDGET ADOPTION PROCESS. WE PRESENTED THE PROPOSED BUDGET TO YOU ON AUGUST 13TH. OUR CORE SERVICES STRONG FOUNDATIONS BUDGET REFLECTS OUR CONTINUED FOCUS ON DELIVERING THE ESSENTIAL SERVICES THAT RESIDENTS RELY ON EVERY DAY SAFE NEIGHBORHOODS, SMOOTH ROADWAYS, CLEAN WATER, AND RESPONSIVE CITY SERVICES.

BEFORE WE OPEN FOR THE PUBLIC HEARING, I WANT TO BRIEFLY REVIEW OUR PROPOSAL. WE BEGIN THIS MORNING'S RECAP WITH THE GENERAL FUND. THE GENERAL FUND CONSISTS OF DEPARTMENTS THAT

[00:25:03]

DON'T GENERATE FUNDS DIRECTLY FROM THE SERVICES THEY PROVIDE. ANOTHER WAY TO LOOK AT IT IS THESE ARE THE GENERAL SERVICES ALL CITIES SHOULD PROVIDE THEIR THEIR CITIZENS. THESE DEPARTMENTS INCLUDE POLICE, FIRE, PARKS, STREET MAINTENANCE, TRAFFIC OPERATIONS, THE LIBRARY AND OUR MUNICIPAL COURT. AS IS IN THE PAST, SALES TAXES ARE THE LARGEST SOURCE OF FUNDING.

WE ESTIMATE THAT SALES TAX WILL PROVIDE ABOUT $44 MILLION IN FUNDING FOR THE NEXT FISCAL YEAR, AFTER SALES TAX. THE NEXT LARGEST SOURCE OF REVENUE IS OUR PROPERTY TAXES, FOLLOWED BY FRANCHISE FEES, FINES AND PENALTIES AND OTHER REVENUES. WITH SUCH A HEAVY RELIANCE ON SALES TAX, WE CAREFULLY REVIEW ECONOMIC TRENDS AND OTHER LOCAL INDICATORS WHILE FORMULATING SALES TAX REVENUE PROJECTIONS YEAR OVER YEAR. FOR FISCAL YEAR 2026, WE ESTIMATE A 3% INCREASE IN OUR SALES TAX REVENUES. THIS IS BELOW THE AVERAGE GROWTH OF 4.75% FROM THE LAST THREE YEARS.

AND WE BELIEVE THIS IS AN ATTAINABLE OBJECT. THE CITY OF TYLER RECEIVES THE MAXIMUM AMOUNT OF SALES TAX THAT CAN, BY LAW, IN THE STATE OF TEXAS, SALES TAX IS CAPPED AT 8.25% OF THE PURCHASE PRICE ON CERTAIN TAXABLE ITEMS. OUT OF THAT, 6.25% GOES TO THE STATE, AND THEN THE REMAINING 2% CAN BE SPLIT AMONG THE LOCAL ENTITIES. IN OUR LOCAL ARRANGEMENT, THE CITY OF TYLER RECEIVES 1.5% OF THE SALES TAX. 1% OF THAT IS USED FOR MAINTENANCE AND OPERATIONS. IN NOVEMBER 1995, VOTERS IN TYLER ELECTED TO USE THE REMAINING HALF PERCENT TO FUND CAPITAL PROJECTS AND ESTABLISH THE HALF CENT SALES TAX BOARD TO OVERSEE THE EXPENDITURE OF THESE FUNDS. NOW, LET'S LOOK AT OUR PROPERTY TAX REVENUES WHEN IT COMES TO CALCULATING OUR PROPERTY TAX REVENUES. EACH YEAR WE HAVE TWO DIFFERENT COMPONENTS WE HAVE TO CONSIDER. THE FIRST PIECE OF THE EQUATION IS THE VALUE OF THE TAXABLE PROPERTY IN THE CITY OF TYLER. THIS JOURNEY BEGINS JANUARY 1ST OF EACH YEAR WHEN THE APPRAISAL DISTRICT BEGINS DETERMINING THE VALUE OF PROPERTY IN EACH TAXING JURISDICTION. AFTER THE APPRAISAL DISTRICT DETERMINES THE VALUE OF THE PROPERTY, THEY THEN CAN DETERMINE THE NET TAXABLE VALUE BY SUBTRACTING ANY EXEMPTIONS THAT PROPERTY IS SUBJECT TO. IN TYLER. THESE EXEMPTIONS INCLUDE ITEMS SUCH AS THE HOMESTEAD EXEMPTION, CERTAIN EXEMPTIONS FOR INDIVIDUALS OVER THE AGE OF 65, AND INDIVIDUALS WITH DISABILITIES. ONCE THOSE CALCULATIONS ARE COMPLETED, THE APPRAISAL DISTRICT PROVIDES THE CITY WITH A TOTAL NET TAXABLE VALUES OF PROPERTIES WITHIN THE CITY LIMITS. AS ILLUSTRATED ON THE CHART ABOVE, THE GROWTH IN NET TAXABLE VALUE FROM 2016 TO 2022 WAS APPROXIMATELY $1.7 BILLION. FROM 2022 TO 2025, NET TAXABLE VALUE GREW APPROXIMATELY $3.8 BILLION. THIS GROWTH IS DUE TO MULTIPLE FACTORS. ONE FACTOR IS THE ADDITION OF NEW PROPERTIES THAT HAVE THROUGH NEW CONSTRUCTION.

OVER THE PAST THREE YEARS, TYLER HAS AVERAGED ADDING APPROXIMATELY $225 MILLION IN VALUE THROUGH NEW CONSTRUCTION. OTHER FACTORS INCLUDE THE STANDARD VALUE APPRECIATION OF PROPERTY AND DEMAND. IN THE LAST FEW YEARS, WE'VE SEEN DEMAND FOR PROPERTY GROW, AND IN RETURN, THE VALUE OF THE EXISTING PROPERTY HAS GROWN DUE TO THE APPRECIATION THAT DEMAND GENERATES. IT'S IMPORTANT TO REMEMBER THAT CHANGES IN TAXABLE VALUES VARY. FOR EACH PROPERTY. YOUR NEIGHBOR'S VALUE MAY DIFFER SIGNIFICANTLY FROM YOUR FROM YOUR OWN. BECAUSE OF THESE DIFFERENCES, THE PROPOSED TAX RATE WILL AFFECT EACH PROPERTY OWNER DIFFERENTLY BASED ON THE AVERAGE CHANGES IN APPRAISED VALUES. THE PROPERTY TAX RATE WE ARE PROPOSING FOR FISCAL YEAR 2026 IS 23.645 $0.02 PER $100 VALUATION. THIS IS LOWER THAN THE CURRENT RATE OF 24.008 $0.05 PER EVALUATION OR VALUATION. PARDON ME? WHILE IT IS LOWER THAN THE CURRENT RATE, IT IS HIGHER THAN THE RATE THAT WOULD GENERATE THE SAME AMOUNT OF REVENUE LAST YEAR OR THE NO NEW REVENUE RATE. THE EASIEST WAY TO ILLUSTRATE THIS IS BY LOOKING AT THE EFFECT IT WOULD HAVE ON THE AVERAGE HOMESTEAD IN TYLER LAST YEAR, OUR AVERAGE HOMESTEAD HAD A TAXABLE VALUE OF $256,262 DUE TO FACTORS WE DISCUSSED JUST A MINUTE AGO, THE AVERAGE HOMESTEAD VALUE HAS A VALUE THIS YEAR OF $274,111. WITH THIS INCREASE IN VALUE IN THE PROPERTY TAX RATE, WE ARE PROPOSING AN OWNER WITH A HOUSE THAT HAS A TAXABLE VALUE EQUAL TO THE AVERAGE WOULD SEE A $32.41 INCREASE ON THEIR ANNUAL TAX BILL. WITH THE PROPOSED TAX RATE, TYLER CONTINUES TO MAINTAIN THE LOWEST TAX RATE FOR CITIES IN TEXAS. THE SLIDE ON THE SCREEN SHOWS THE TAX RATE FOR OUR BENCHMARK CITIES IN RELATION TO OUR TAX RATE.

ONE ITEM TO NOTE ON ALL OF OUR BENCHMARK CITIES, YOU CAN SEE THEY HAVE TWO COMPONENTS TO THEIR TAX RATES. THEY HAVE THE STANDARD MAINTENANCE AND OPERATIONS COMPONENT. THIS PORTION OF THE TAX RATE THAT GOES TO OPERATING THE CITY AND ITS SERVICES, AND THEN THEY HAVE AN ADDITIONAL INTEREST AND SINKING COMPONENT THAT IS PART OF THEIR TOTAL TAX RATE. THE INTEREST IN SINKING COMPONENT CAN ONLY BE USED TO PAY OFF THE OUTSTANDING DEBT OBLIGATIONS OF THESE BENCHMARK CITIES THROUGH FISCAL RESPONSIBILITY AND FUNDING CAPITAL PROJECTS WITH

[00:30:03]

CASH THROUGH THE HALF CENT SALES TAX. TYLER HAS BEEN ABLE TO USE EVERY DOLLAR IT GENERATES THROUGH PROPERTY TAXES TO PAY FOR THE PUBLIC SAFETY AND QUALITY OF LIFE SERVICES THAT OUR CITIZENS EXPECT. YOU MAY BE WONDERING WHAT WHERE THOSE GENERAL FUND REVENUES GO ONCE THEY ARE COLLECTED. THE ILLUSTRATION SHOWN HERE PROVIDES A BREAKDOWN OF WHERE EVERY DOLLAR OF REVENUE IS USED. AGAIN, THIS IS JUST THE GENERAL FUND AND DOES NOT INCLUDE ANY OF OUR ENTERPRISE FUNDED SERVICES SUCH AS UTILITIES, SOLID WASTE, THE AIRPORT DEVELOPMENT SERVICES, ETC. AND THE GENERAL FUND. APPROXIMATELY $0.66 OF EVERY DOLLAR GOES TOWARDS FUNDING OUR PUBLIC SAFETY DEPARTMENTS. THIS PAYS SALARIES, BENEFITS, EQUIPMENT COSTS AND OTHER ITEMS TO ENSURE THAT WE HAVE THE NECESSARY PEOPLE AND TOOLS TO MAINTAIN TYLER'S PLACE AS ONE OF THE BEST PLACES TO LIVE. THE REMAINING $0.34 ARE SPLIT BETWEEN DEPARTMENTS SUCH AS THE LIBRARY, COURT, PARKS, STREETS, TRAFFIC AND INTERNAL SERVICES SUCH AS FINANCE, ORGANIZATIONAL DEVELOPMENT, LEGAL AND ADMINISTRATION. ALSO, I SHOULD NOTE THAT THE MEMBERS OF CITY COUNCIL ARE VOLUNTEERS AND RECEIVE NO COMPENSATION OR BENEFITS. DESPITE DESPITE WHAT SOCIAL MEDIA MIGHT STATE, THIS FUNDING ALLOWS US TO CONTINUE PROGRAMS SUCH AS THE AXON, TASER AND BODY CAMERA REPLACEMENT FOR POLICE, PAYING FOR THE SELF-CONTAINED BREATHING APPARATUS, SYSTEMS FOR FIRE, REMOVING DILAPIDATED STRUCTURES THROUGHOUT THE CITY, AND REMOVING DEAD TREES FROM OUR PARKS BEFORE THEY POSE A THREAT TO THE PERSONS OR PROPERTY. IT ALSO ALLOWS US TO MAINTAIN AND UPGRADE ITEMS SUCH AS THE KENNELS AT OUR ANIMAL SHELTER, THE FACILITIES AT OUR PARKS AND OUR STREET INFRASTRUCTURE. MOVING AWAY FROM THE GENERAL FUND, LET'S REVIEW OUR PROPOSED CHANGES TO THE UTILITY BILLS FOR FISCAL YEAR 2026. WE'VE HELD THE LINE ON MOST FEES, INCLUDING WATER, SEWER AND SOLID WASTE RATES. THE ONLY UTILITY INCREASE PROPOSED IN THE 2026 BUDGET IS A $6.47 ADJUSTMENT TO THE REGULATORY COMPLIANCE FEE TO PAY FOR DEBT RELATED TO FEDERALLY MANDATED PROJECTS. UNDER THE 2017 EPA CONSENT DECREE. WE'VE TAKEN A DIFFERENT APPROACH TO HOW THIS INCREASE WILL BE ADDED TO THE UTILITY BILLS. THIS YEAR, WE'RE PLANNING TO SPLIT THE REGULATORY COMPLIANCE FEE INTO INTO INCREASED IMPLEMENTATION INTO TWO COMPONENTS. THE FIRST PHASE OF THE INCREASE WILL BE EFFECTIVE ON OCTOBER 1ST, 2025, AND WILL INCREASE THE FEE FROM $19.70 TO $22.94. THE SECOND PHASE OF THE INCREASE WILL BEGIN JANUARY 1ST, AND WILL INCREASE THE FEE FROM $22.94 TO $26.17. INCLUDED IN THE PROPOSED FISCAL YEAR 2026 BUDGET IS $14.5 MILLION IN CASH FUNDED WATER AND WASTEWATER CAPITAL IMPROVEMENTS, AN INVESTMENT IN THE FUTURE, RELIABILITY AND SAFETY OF OUR SYSTEM PROJECTS INCLUDE SERVICE LINE REPLACEMENTS, WATER MAIN IMPROVEMENTS, UPGRADES AT THE LAKE PALESTINE WATER TREATMENT PLANT, AND CONTINUED WORK ON THE TASTE AND ODOR IMPROVEMENTS TO ADDRESS WATER QUALITY. WE WILL ALSO PLUG UNUSED WELLS PER TCGC REQUIREMENTS, EXTEND SERVICE LINES WERE NEEDED AND FUND THE WESTSIDE WASTEWATER TREATMENT PLANT REHABILITATION PROJECT AS PART OF A 15 YEAR PLAN TO INCREASE STORMWATER OPERATIONAL EFFICIENCY AND PREVENT COSTLY MAINTENANCE ISSUES. WE IDENTIFIED THE NEED FOR NEW EQUIPMENT AND INCLUDED THE FUNDS IN OUR PROPOSAL. THIS INCLUDES UPGRADING A ONE YARD CONCRETE TRAILER TO A FIVE YARD MINI MIXER CONCRETE TRUCK. THIS UPGRADE WILL SAVE TIME AND IMPROVE CREW EFFECTIVENESS IN MAINTAINING THE STORM SEWER SYSTEM. ADDITIONALLY, WE HAVE PROPOSED ALLOCATING $768,000 FOR CAPITAL PROJECTS IN THE BUDGET WITH APPROXIMATELY $500,000 OF THOSE DEDICATED DRAINAGE AND EROSION REPAIRS, AND THE REMAINDER FOR STRUCTURE FLOODING PROJECTS. THESE IMPROVEMENTS ENSURE THAT MAINTENANCE PROBLEMS ARE MANAGED PROACTIVELY. FINALLY, WITHIN THE PROPOSED BUDGET, WE ARE PROPOSING THE FOLLOWING FEE CHANGES RELATED TO THE RENTAL OF CITY FACILITIES. THE FIRST PROPOSAL IS TO IMPLEMENT A RENTAL FEE FOR THE LIBRARY'S TAYLOR AUDITORIUM, TO HELP RECOUP A PORTION OF THE COST ASSOCIATED WITH MAKING THIS SPACE AVAILABLE FOR PUBLIC USE. THE PROPOSED FEE STRUCTURE IS $100 PER HOUR FOR PRIVATE USE, $50 PER HOUR FOR NON-PROFITS WITH A TWO HOUR MINIMUM. THE SECOND FEE CHANGE PROPOSAL IS RELATED TO THE FEES ASSOCIATED WITH RENTALS AT THE ROSE GARDEN CENTER. AS YOU CAN SEE ON THE SLIDE IN FRONT OF YOU, WE'RE PROPOSING VARIOUS FEE INCREASES FOR RENTAL OF THESE FACILITIES.

THESE FEE INCREASES HELP OFFSET THE COST OF RUNNING THE FACILITIES AND REDUCE THE IMPACT ON THE TOURISM FUND, WHICH SUBSIDIZES THESE FACILITIES. AS PER THE BUDGET AND TAX RATE ADOPTION SCHEDULE PER STATE STATUTES, THE COUNCIL'S ONLY ACTION TO TAKE TODAY IS CONDUCTING A PUBLIC HEARING. AS A REMINDER, OUR SECOND PUBLIC HEARING WILL TAKE PLACE AT YOUR NEXT MEETING ON SEPTEMBER 10TH. AFTER THE HEARING ON SEPTEMBER 10TH, WE WILL TAKE THE. WE WILL BRING THE TAX RATE AND BUDGET TO THE COUNCIL FOR ADOPTION. THANK YOU FOR THE OPPORTUNITY FOR THIS MORNING TO GO OVER THE HIGHLIGHTS AND THE PROPOSED BUDGET FOR FISCAL YEAR 2026. THANK YOU. THANK YOU. ARE THERE ANY QUESTIONS FOR THE CITY MANAGER BEFORE WE GO INTO PUBLIC HEARING? I JUST WANT TO ASK HIM AGAIN THAT NONPAYING THING THAT YOU MENTIONED. YES, WE JUST WANT TO. YOU'VE BEEN HERE FIVE YEARS, COUNCILMAN. I DON'T KNOW, I DON'T KNOW IF YOU THOUGHT YOU WERE PAID. WE MAY HAVE TOLD YOU TO PAY. IT GOT

[00:35:03]

LOST, BUT IT'S NOT EVERY DAY. RIGHT? ALRIGHT. AT THIS POINT, WE'RE GOING TO OPEN UP A PUBLIC HEARING ON THE PROPOSED FISCAL YEAR 2025, 2026 ANNUAL BUDGET AND ON THE PROPOSED PROPERTY TAX RATE OF 0.236452 PER 100 OF TAXABLE PROPERTY VALUE. I DON'T HAVE ANY CARDS THAT ON THE COMPUTER UP HERE. IS THERE ANYBODY OUT THERE OUT THERE THAT WISHES TO COME SPEAK TO THIS ITEM? YOUR SHOT IS YOUR CHANCE. NOBODY WANTS YOU. HAVE ANOTHER PUBLIC HEARING. DO YOU WANT TO COME UP? OH, COME ON, COME ON. CAN YOU STATE YOUR NAME AND ADDRESS FOR THE RECORD, PLEASE? MY NAME IS TYLER BROOKS. I LIVE AT 17 101 PILOT DRIVE. SO I DID HAVE A QUESTION. IT SAID $0.23 PER $100. BUT YOU WERE SAYING THAT LIKE, IT'S GOING TO BE AN INCREASE OF AROUND $30 PER THE AVERAGE HOUSEHOLD. IS THAT SO? YES. WITH THE WHILE THE RATE WILL BE GOING DOWN DEPENDING ON WHAT YOUR VALUATIONS WERE I UNDERSTAND. YES, YES. AND SO YEAH THE AVERAGE HOUSEHOLD WILL SEE AN INCREASE, AN ANNUAL INCREASE OF $32 FOR THE NEXT YEAR FOR THE WHOLE FISCAL YEAR. YES. OKAY. I GUESS I'M NOT UNDERSTANDING THE MATH BECAUSE.

SO MY PROPERTY WAS EVALUATED AT 727,000 THIS YEAR. SO PER EVERY $100 IS A $0.23 INCREASE. NO, SIR. IT ACTUALLY IT THE WAY THE STATE OF TEXAS HAS THE TAX RATE PIECE. THE THE RATE COMPONENT IS IT DEPENDS ON WHAT YOUR VALUATION LAST YEAR WAS COMPARED TO YOUR VALUATION THAT YOU GOT FOR FOR THIS YEAR. AND THEN THAT DIFFERENCE ULTIMATELY YOU THEN MULTIPLY. YOU CAN LOOK AT THE RATES. OKAY. SO THE DELTA IS MULTIPLIED BY THE $0.23. WELL THE ULTIMATELY YOU'RE GOING TO HAVE TO PAY THE TAXES AND COME HELP EXPLAIN A LITTLE BIT BETTER. WELL YOU TAKE YOUR YOUR VALUE. YOU KNOW, YOU DO THE DIVISION. ANY EXEMPTIONS THAT YOU MIGHT GET AND MULTIPLY THAT BY THAT TAX RATE. IF YOU DID YOUR VALUES GO UP OR DOWN AS COMPARED. WELL I WENT AND I WENT AND DEBATED THEM AND WE BROUGHT THEM DOWN ABOUT $120,000 FROM WHAT IT WAS ORIGINALLY VALUED. SO NUMBER ONE, THAT WAS KIND OF CRAZY THAT IT WAS OVERVALUED BY THAT MUCH. YEAH. SO I'M GLAD I WENT AND DID THAT. YEAH. SO AND SO DEPENDING ON WHAT YOUR VALUE WAS LAST YEAR, IF EVEN AT THE NEW VALUE THEY HAD YET IF YOUR NEW VALUE ACTUALLY IS, YOUR VALUE THAT YOU HAVE FOR THIS YEAR IS LESS THAN THE VALUE THAT THEY VALUED AT THE YEAR BEFORE, YOUR TAXES WILL ACTUALLY PROPERTY TAXES WILL GO DOWN. CORRECT. IF IT IS HIGHER THAN IT WAS THE YEAR BEFORE, THEN YOUR THE CHANGE WILL BE DEPENDENT UPON WHAT YOU PAID IN TAXES LAST YEAR AS COMPARED TO YOUR NEW PROPERTY VALUATION. MINUS EXEMPTIONS TIMES WITH THE NEW RATE. OKAY. DOES THAT OR HE'S OUR IF YOU WOULD LIKE. I MEAN IF THERE'S MORE DETAIL BECAUSE FROM FROM WHAT I UNDERSTOOD, MY RATE WAS GOING TO GO UP $1,600 FOR NEXT YEAR, WHICH TO BE HONEST, I'M LIVING ON A PRETTY TIGHT BUDGET AND I WOULD HAVE TO PROBABLY MOVE OUT.

I MEAN, I'D HAVE TO SELL MY HOUSE WITH AN INCREASE THAT HIGH BECAUSE FROM FROM THE MATH THAT I DID, APPARENTLY, I DON'T KNOW. I MIGHT BE MISSING A FACTOR HERE, BUT IT WAS LOOKING LIKE A 20% INCREASE ON MY TAXES OVER ONE FISCAL YEAR. SO YEAH. SO YOUR THE RATE ITSELF IS, LIKE I SAID, IS DROPPING BECAUSE THE RATE WAS $0.24 AND WE'RE DROPPING IT OR THE RECOMMENDATION IS TO DROP IT TO 23.645 $0.02. SO YOU'LL SEE THE RATE THAT YOU'LL MULTIPLY BY DROPS. BUT AGAIN, IT ALL DEPENDS ON WHAT THAT APPRAISED VALUE INCREASED OR DECREASED BY TO. THEN WHAT IS THAT IMPACT GOING TO BE ON. SO HOPEFULLY IT'LL BE AN OFFSET. MAYBE IT'LL JUST BE AN OFFSET FROM WHEN I WAS ABLE TO DEDUCT. NO. IF YOUR VALUE WENT DOWN YOU WILL PAY LESS IN TAX. OKAY OKAY. EACH PROPERTY THAT. AVERAGE. CORRECT. SO THE IMPACT ON PROPERTY PATRICK, CAN YOU COME TO THE MICROPHONE. SO EACH EACH THOSE NUMBERS ARE AVERAGES. SO EACH PROPERTY COULD BE IMPACTED A LITTLE DIFFERENTLY. BUT WHAT I WOULD SUGGEST IS IF YOU DON'T MIND I'LL JUST STEP OUT WITH YOU. I'D LOVE TO GO THROUGH THE DETAILS AND I CAN ANSWER ANY QUESTIONS YOU HAVE. AND AND ALSO WE GOT A SECOND PUBLIC HEARING. SO IF YOU WANT TO COME BACK. SURE. RIGHT. AND AND ALSO JUST AS A POINT OF REFERENCE, AND THANK YOU FOR GIVING US THE OPPORTUNITY TO SAY THIS IS FOR THE CITY SIDE. SO YOU KNOW, YOUR TAX BILL. YOU KNOW, MY TAX BILL INCLUDES THE CITY, THE COUNTY, THE SCHOOL DISTRICT, THE TJC. SOME PARTS OF TYLER HAVE DIFFERENT SCHOOL DISTRICTS. AND SO IT IS IT WILL VARY BASED UPON. YEAH. ALL THOSE ADDITIONAL, YOU KNOW, BECAUSE YOU KNOW, THE COUNTY YOU KNOW, THEY'RE WORKING ON THEIR TAX COMPONENT. AND SO THAT COULD CHANGE AS WELL. AND THE SCHOOL DISTRICTS YOU KNOW THEIR TAX LEVY CHANGES AS WELL. SO SO YOU HAVE ALL THOSE DIFFERENT FACTORS FOR US. WE CAN ONLY SPEAK TO THE CITY COMPONENT. BUT YEAH WE CAN HELP YOU WITH THAT. RIGHT. NO I UNDERSTAND.

[00:40:05]

OKAY. THANK YOU FOR YOUR TIME. THANK YOU. I DO I DO APPLAUD YOU FOR GOING OUT TO THE APPRAISAL DISTRICT AND HAVING A DISCUSSION WITH THEM OVER YOUR VALUE. I'VE DONE THAT EVERY YEAR AND WE'VE BEEN ABLE TO BRING IT DOWN, WHICH I UNDERSTAND. THERE'S LOTS OF HOUSES AND BUILDINGS TO APPRAISE, BUT IT WAS KIND OF SURPRISING TO SEE THE. WELL, I ENCOURAGE EVERYONE TO DO THAT. YEAH. SO ANYWAY, THANK YOU FOR COMING. THANK YOU. HEATHER.

HEATHER, DID YOU HAVE SOMETHING DIFFERENT THAT YOU WANTED TO SAY? YOU WERE ITCHING TO GO UP THERE? SHE'S JUST SOMETHING. OKAY. JUST. I KNOW SHE HAS SOMETHING DIFFERENT. ALRIGHT.

IS THERE ANYONE ELSE THAT WISHES TO COME SPEAK TO THIS AGENDA ITEM? ALRIGHT. SEEING NONE, WE'RE GOING TO CLOSE THE PUBLIC HEARING AND MOVE ON TO M ONE. HEATHER. GOOD MORNING,

[M -1 Request that the City Council consider accepting the annual review of City of Tyler property tax abatements regarding Hood Flexible Packaging and Trane Technologies.]

MAYOR AND COUNCIL. SO I HAVE SOME GREAT NEWS THIS MORNING. WE HAVE OUR ANNUAL ACCEPTING OF THE ANNUAL REVIEW OF THE CITY OF TYLER PROPERTY TAX ABATEMENTS, WHICH THIS YEAR INCLUDE ONLY HOOD PACKAGING AND TRAIN. THE COMMITTEE FOUND THAT ALL WERE IN COMPLIANCE. BOTH COMPANIES SUBMITTED THEIR NUMBERS AND THIS IS GOOD. THROUGH THE END OF 2024.

DECEMBER 31ST OF 2024, AND HOOD PACKAGING HAS EXPANDED ITS EMPLOYMENT BY 18 NEW JOBS. AND WITH A $20 MILLION INVESTMENT IN THEIR PLANT AND EQUIPMENT, WHICH EXCEEDS THEIR TARGET PERFORMANCE AT 17 MILLION. THE COMMITTEE RECOMMENDS THAT THE 2024 ABATEMENT IS GRANTED AT THE FULL 80% AND TRAIN AS AT, THEY'VE MAINTAINED THEIR EMPLOYMENT AT 400 FOR THE NEW BUILDING INVESTMENT AT 118 MILLION. THEY'VE ADDED A TOTAL OF 17 1730 NEW JOBS THROUGHOUT THIS PROJECT, AND THEY NOW HAVE A CURRENT TOTAL OF 2139. SO WITH THAT, THEY MEET THEIR REQUIREMENT FOR PERFORMANCE, AND THEY ARE RECOMMENDING FULL ABATEMENT AT 100%. THE CITY COUNCIL IS ASKED TO ACCEPT THE ANNUAL REVIEW OF THE CITY OF TYLER PROPERTY TAX ABATEMENT REGARDING HOOD PACKAGING AND TRAINING. ALL RIGHT. ANY QUESTIONS FOR HEATHER? YEAH, I HAVE A QUICK QUESTION WITH TRAIN. DIDN'T THEY JUST RECENTLY LAY OFF. ARE THESE NUMBERS REFLECTIVE OF THAT LAYOFF. NOT THOSE NUMBERS. THIS REPORT IS GOOD THROUGH DECEMBER 31ST OF 2024. OKAY. IS THIS THE THIRD YEAR OF THE 100% TRAIN? DO YOU KNOW? SEEMS LIKE IT.

PROBABLY NO. ON TRAIN. THIS. YEAH. WE'RE AT 100% THE THREE YEARS. YES. THIRD YEAR. YEAH.

OKAY. ANY OTHER QUESTIONS? MOVE TO APPROVE. SECOND. GOT A MOTION BY SECOND BY HAYNIE. ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED. MOTION CARRIES. WE'RE GOING TO COME BACK TO M2 AFTER WE GET THROUGH WITH OUR EXECUTIVE SESSION. SO WE'RE GOING TO MOVE

[CONSENT]

DOWN TO THE CONSENT AGENDA. DO WE WANT TO APPROVE AS PRESENTED MOVE TO APPROVE THE CONSENT AGENDA AS WRITTEN. SECOND MOTION BY CURTIS AND BY NICHOLS. ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED. MOTION CARRIES. THE CITY MANAGER'S REPORT. MAYOR

[CITY MANAGER'S REPORT]

AND COUNCIL. I'M HERE WITH YOUR WEEKEND PLANS. SO ON FRIDAY MORNING, WE ARE GOING TO HAVE A GROUNDBREAKING. THIS IS AT 9:30 A.M. OVER IN DOING THIS, IN COLLABORATION WITH SMITH COUNTY FOR OUR DOWNTOWN IMPROVEMENT PROJECT. AND SO THAT WILL BE DONE. MAYOR WARREN AND COUNTY JUDGE JUDGE NEIL FRANKLIN WILL BE THERE TO GIVE REMARKS AND THEN ALSO TO BUST SOME STUFF UP ON THE SQUARE. AND SO NONE OF THE MONUMENTS ARE JUST SOME OTHER STUFF. AND AND SO WE'RE VERY EXCITED ABOUT THAT. THIS IS A GREAT OPPORTUNITY TO KIND OF CELEBRATE THIS PROJECT AND THE THINGS THAT ARE GOING ON DOWNTOWN. AND SO THAT WILL BE AT 9:30 A.M. ON FRIDAY MORNING.

THAT EVENING, YOU AND YOUR PUP AND DOG CAN THEN GO CELEBRATE THE THE BEING BEATING THE HEAT, I GUESS WITH PAUL OVER AT FUN FOREST PARK AT OUR THE SWIMMING POOL THERE. IT'S THE LAST DAY OF THE POOLS OPERATIONS THAT FRIDAY AND SO IT JUST ALL GOES TO THE DOGS. AND SO OUR RESIDENTS ARE INVITED TO COME AND HAVE THEIR DOGS SWIM AND ENJOY THE SPRAY PARK THAT EVENING AS PART OF PAUL TAYLOR. THEN ON SATURDAY NIGHT, FEEL FREE TO COME TO BURCHFIELD PARK, BRING A BLANKET, BRING SOME CHAIRS, BRING SOME FRIENDS AND ENJOY THE EAST TEXAS SYMPHONY ORCHESTRA AS THEY HAVE THE CONCERT IN THE PARK ON SATURDAY NIGHT. THAT'S ALWAYS A GREAT TIME. WE ALWAYS HAVE SUCH A GREAT OUTING AT THAT EVENT. AND IF YOU LIKE THE MUSIC AT THE

[00:45:05]

PARK ON THAT SATURDAY NIGHT, COME BACK THE NEXT SATURDAY ON THE FIRST SATURDAY IN SEPTEMBER, WHERE GREGGY AND THE JETS, WHICH IS JOHN TRIBUTE BAND, WILL BE PERFORMING. PARKS AND RECREATION DEPARTMENT IN LIBERTY HALL HAVE WORKED IN COLLABORATION TO BRING TO WORK TO CONTINUE TO BRING MORE MUSIC TO THE PARK AND SO AND USE OF THE AMPHITHEATER THERE. AND SO WE WILL HAVE THAT EVENT THAT SATURDAY NIGHT. WE'RE LOOKING FORWARD TO THAT AND APPRECIATIVE OF PARKS AND RECREATION AND LIBERTY HALL OF HELPING MAKE THAT HAPPEN. SO CAN YOU SING THAT ONE LINE, GREGGY AND THE JETS DON'T DO IT. THAT'S NOT ACTUALLY HOW THAT LINE GOES. BUT NO, WE ARE BEING RECORDED AS WE SPEAK. ALRIGHT. ANY COMMENTS OR ANYTHING FROM

[EXECUTIVE SESSION]

THE CITY MANAGER BEFORE WE GO INTO EXECUTIVE SESSION? NO. OKAY, OKAY. SORRY, I GOTTA READ ALL THIS. THE CITY COUNCIL MAY GO INTO EXECUTIVE SESSION REGARDING ANY ITEM ON THE AGENDA AS AUTHORIZED BY TITLE FIVE, CHAPTER 551. THE TEXAS GOVERNMENT CODE NOTICE IS HEREBY GIVEN THAT THE CITY COUNCIL MAY GO INTO EXECUTIVE SESSION IN ACCORDANCE WITH THE FOLLOWING PROVISION OF THE GOVERNMENT CODE UNDER TEXAS GOVERNMENT CODE SECTION 551.087.

ECONOMIC DEVELOPMENT. DELIBERATION REGARDING THE FOLLOWING POSSIBLE OFFER OF FINANCIAL OR OTHER INCENTIVE TO TYLER HOTEL PARTNERS LP, AND CONSIDER FINANCIAL AND OTHER INFORMATION REGARDING THE PROPOSED DEVELOPMENT OF A FULL SERVICE HOTEL IN DOWNTOWN TYLER, TEXAS, WITH WHICH THE CITY IS CONDUCTING CONDUCTING ECONOMIC DEVELOPMENT NEGOTIATIONS THAT COULD LEAD TO A PARTNERSHIP IN THAILAND. ANY FINAL ACTION BY THE CITY COUNCIL WILL BE TAKEN IN OPEN SESSION. SO WE'RE GOING TO GO TO EXECUTIVE SESSION. AREE BACK ON. YEAH. OKAY. ALL RIGHT.

[RECONVENE INTO OPEN SESSION]

WE ARE BACK FROM EXECUTIVE SESSION AND WE'RE GOING TO GO BACK TO M2. STEPHANIE. MAYOR

[M -2 Request that the City Council consider authorizing the City Manager to sign the Chapter 380 Economic Development Incentive Agreement between the City of Tyler and Tyler Hotel Partners, LP for development of a full-service hotel to be located in Downtown Tyler, Texas.]

COUNCIL JUST A QUICK PRESENTATION TO GO THROUGH THIS ITEM TODAY. AND THEN I'LL BRING UP TRENT PETTY OUR CONSULTANT ON THE PROJECT. SO JUST WANTED TO START OUT WITH VALENCIA HOTEL GROUP AND HOW THE HOW AND THE WHY. SO REALLY WE STARTED TALKING WITH VALENCIA GROUP. WE SENT AN EMAIL, REALLY HAD THE PRIVILEGE OF STAYING AT SOME OF THEIR HOTELS AND WHAT THEIR ELEVATED BRAND OFFERS. THEY HAVE MANY DESTINATION HOTELS THROUGHOUT THE STATE AND OTHER STATES. AND YOU KNOW, WHAT I HAVE HERE IS JUST SOME OF THOSE LOCATIONS. THE RIVERWALK, SAN ANTONIO, ARLINGTON, BRYAN, COLLEGE STATION. SO A BIG PRESENCE IN TEXAS. NOT ONLY THAT, BUT THEY HAVE A TREMENDOUS BACKGROUND IN HOSPITALITY. AND WHAT THEY BRING IS A UNIQUE AND FRESH PERSPECTIVE TO THE HOTEL MARKET. SO AFTER THE EMAIL, WE EMAILED THEM IN AUGUST 3RD YEARS AGO TO THIS MONTH, WE HAVE BEEN IN THIS RELATIONSHIP AND MOVED RATHER QUICK AT THE BEGINNING. WE EMAILED THEM. THEY SHOWED UP FOR US A WEEK LATER. WE GAVE THEM A BUS TOUR, DROVE AROUND TYLER, SHOWED THEM THE NEW CONFERENCE CENTER, TALKED TO THEM ABOUT WHAT WAS GOING ON DOWNTOWN, AND THAT'S REALLY LED TO THIS EXCITING PARTNERSHIP.

AND, YOU KNOW, AGAIN, JUST THEIR ELEVATED BRAND AND WHAT THEY BRING. AND I THINK ONE OF THE UNIQUE THINGS THAT THEY HAVE OFFERED IS THEY'VE DONE EXTENSIVE RESEARCH IN OUR COMMUNITY. AND THE BLACKSTONE HOTEL WAS A HIGH END LUXURY HOTEL IN TYLER. AND THEY REALLY WANT TO BRING BACK THAT BRAND AND ALMOST THE SAME LOCATION. IT WAS LOCATED IN DOWNTOWN TYLER. SO THEY'VE DONE A GREAT JOB REALLY LOOKING AT HOW CAN THEY CONNECT TO THE COMMUNITY.

AND THEY DO THAT IN EACH COMMUNITY THAT THEY'VE BEEN LOCATED IN. SO AGAIN, THIS PROJECT OVERVIEW IS REALLY A DESTINATION. FULL SERVICE HOTEL, 140 ROOMS, EXTENSIVE MEETING SPACE AND WEDDING SPACE, AND THEN ALSO AN INVESTMENT OF OVER $47 MILLION INTO THE DOWNTOWN LOCATION. THIS IS A RENDERING THAT WE'VE BEEN WORKING WITH VALENCIA ON IS YOU CAN SEE POOL, HIGH END PROPERTY, SOMETHING THAT IS REALLY GOING TO BE A CATALYST PROJECT FOR DOWNTOWN.

AND SO ONE THING I WOULD BE REMISS IF I DIDN'T SAY IS THAT WE HAVE HAD A TREMENDOUS EFFORT.

THE STAFF LEGAL, EVERYONE FROM LEGAL TO HEATHER, NICK, HER STAFF AND VALENCIA GROUP REALLY PUSHING THIS TO THE END TO GET IT READY FOR TODAY. SO I JUST WANT TO SAY THANK YOU TO EVERYBODY ON THE CITY STAFF LEVEL IN VALENCIA WHO'S DONE THE WORK. AND THEN THE LION'S SHARE REALLY WAS TRENT PETTY. AND SO I'M GOING TO BRING HIM UP AND HE'S GOING TO GO INTO SOME MORE DETAILS WITH THE DEAL. THANKS, STEPHANIE. THANK YOU. THANK YOU STEPHANIE. MAYOR AND COUNCIL, GREAT TO BE WITH YOU THIS MORNING. TRENT PETTY PETTY AND ASSOCIATES, WE ARE IN NORTH RICHLAND HILLS, TEXAS. I AM A FORMER CITY MANAGER THAT HAS A PASSION FOR DOWNTOWN. SO THIS HAS BEEN A VERY EXCITING PROJECT TO BE ABLE TO WORK ON. IT'S BEEN A PLEASURE WORKING WITH THE VALENCIA TEAM AND WITH YOUR TEAM. THIS IS THIS IS A GREAT CATALYTIC PROJECT FOR THE

[00:50:04]

CITY OF TYLER. THE BLACKSTONE HOTEL IS GOING TO REPRESENT AN OPPORTUNITY TO REALLY TAKE A HUGE PUBLIC STATEMENT TOWARD A VERY EMPIRICAL INVESTMENT IN DOWNTOWN THAT WILL PAY OFF DECADES AND DECADES TO COME. THESE ARE DIFFICULT PROJECTS TO GET POST-COVID. THESE KIND OF HOTELS DO NOT COME ALONG EVERY DAY. AND WHEN THEY DO COME ALONG, IT TAKES A LOT OF WORK TO MAKE ONE HAPPEN. BUT THERE'S NOTHING MORE CATALYTIC TO A DOWNTOWN THAN A FIRST CLASS HOTEL LIKE THIS PROJECT REPRESENTS. IT IS ONE OF THOSE THINGS THAT YOU REALLY WILL WORK AN ENTIRE CAREER FOR WHEN IT WORKS TOWARD A DOWNTOWN RENOVATION, BECAUSE ALL OF OUR DOWNTOWN INFRASTRUCTURE IS SUFFERING FROM AGE, RIGHT? IN EVERY COMMUNITY IN TEXAS, IT TAKES THESE KIND OF CATALYTIC STEPS TO BE ABLE TO SAY, LOOK, WE WANT TO INVEST IN OUR REGION AND OUR CITY AND OUR COMMUNITY, BUT WE KNOW THAT DOWNTOWN IS THE HEART, AND THIS GIVES US THE OPPORTUNITY TO INVEST IN THAT DOWNTOWN. IN A WAY, I THINK THAT VERY IS VERY EMPIRICALLY SOLID FOR THE CITY OF TYLER. WHAT YOU HAVE BEFORE YOU FOR THE BLACKSTONE SUMMARY, THIS INVESTMENT IS PROBABLY GOING TO BE CLOSER TO $50 MILLION. THE 47.7 REPRESENTS THE CONTINGENCY REDUCTION OVER THEIR BUDGET, BUT A $50 MILLION INVESTMENT IN TYLER, 140 ROOMS, 5700FT■!S OF MEETING SPACE, PROBABLY ABOUT 93,000FT■!S. TOTL BUILDING AREA, ABOUT A 42 MONTH MAXIMUM TIME FRAME. IT'S PROBABLY GOING TO BE CLOSER TO 36, BUT ALL THESE AGREEMENTS PROVIDE FOR A LITTLE BIT OF A HEDGE IN CASE THERE ARE SLOWDOWNS OF ANY KIND ON THE CITY SIDE THERE. THIS IS A PARTNERSHIP THAT WILL INVOLVE NOT ONLY THE CITY OF TYLER, WHO BY FAR IS THE MOST IMPORTANT INVESTOR IN THIS PROJECT, BUT ALSO SMITH COUNTY HAS INDICATED A VERY INTEREST IN BRINGING THIS ON THEIR AGENDA, TO CONSIDER IT AS A SUPPORT AS WELL AS TYLER TYLER JUNIOR COLLEGE. AND I'VE HAD THE OPPORTUNITY TO MEET WITH ALL OF THOSE ENTITIES AND HAD GREAT CONVERSATIONS WITH THEM. AND I THINK SUBSEQUENT TO YOUR MEETING, THERE'LL BE MEETINGS ON THEIR AGENDA FOR THEM TO CONSIDER WHETHER OR NOT THIS IS AN INVESTMENT THAT THEY'D LIKE TO LOOK AT, TOO. SO FAR, IT LOOKS VERY, VERY FAVORABLE. THE REASON THAT OCCURRED IS BECAUSE THIS TYPE OF PROJECT REQUIRES A SUBSTANTIAL AMOUNT OF PUBLIC INVESTMENT, AND THIS IS NOT UNIQUE TO TYLER. THIS HAPPENS ALL OVER THE STATE AGAIN POST COVID. IT'S VERY DIFFICULT TO PUT THESE PROJECTS TOGETHER. BUT THE GOOD NEWS ABOUT THIS PROJECT IS WHEN YOU LOOK AT THE PUBLIC INVESTMENT, THERE'S STILL ABOUT A 4 TO 1 RATIO OF BENEFIT. AND THAT'S KIND OF A MAGIC NUMBER IN THIS BUSINESS. WE WANT TO BE ABLE TO SHOW ABOUT A 4 TO 1 RATIO. AND THIS PROJECT DOES PRODUCE THAT. SO WHEN YOU LOOK AT THE OVERALL MAXIMUM PAYMENTS ON THIS PROJECT THERE'S TWO TIERS. THE GOAL IS IN TEN YEARS TO BE ABLE TO ASSEMBLE $11.4 MILLION IN TOTAL INCENTIVES. IF FOR SOME REASON WE DON'T MAKE THAT, AND THIS IS A 100% PERFORMANCE BASED AGREEMENT, THERE'S NO CASH COMING OUT OF THE CITY WHATSOEVER. THIS IS ONLY BASED ON THE PERFORMANCE OF THE PRODUCT. SO THERE'S NO RISK TO THE CITY FROM FROM A STANDPOINT OF HAVING MONEY OUT THERE ON THE TABLE THAT YOU COULD LOSE, THAT'S NOT GOING TO HAPPEN. BUT IF WE CAN MAKE THAT $11.4 MILLION FROM THE INCENTIVES THAT HAVE BEEN OFFERED, THEN THE PROJECT ENDS AT 11, $11.4 MILLION IN TEN YEARS AND YOU'RE DONE. AND 100% THEN OF THOSE BENEFITS COME BACK TO THE CITY OF TYLER. IF WE DON'T MAKE THAT NUMBER, THEN WE PUSH UP TO A THRESHOLD OF $12 MILLION. THAT WILL BE IN 11 YEARS. BUT IN EITHER CASE, THAT IS THE MAXIMUM. SO THIS IS A 10 TO 11 YEAR INVESTMENT IN TYLER THAT WILL ULTIMATELY OVER 20 YEARS GIVE YOU A 4 TO 1 RATIO OF RETURN, WHICH IS A GOOD PROJECT.

THAT'S A GOOD RETURN ON INVESTMENT. IT'S A RESPONSIBLE USE OF THE PUBLIC DOLLARS.

STEPHANIE WILL GO TO THE NEXT ONE. WHEN YOU LOOK AT THE OVERALL INVESTMENT IN COST, AS I SAID, WE'RE LOOKING AT AN ABSOLUTE MAXIMUM OF $12 MILLION, AND THAT WOULD INCLUDE YOUR PROPERTY TAX AS WELL AS HOTEL MOTEL TAX, SALES TAX, DIRECT PERMIT REVENUES, FEE WAIVERS, ALL THE DIFFERENT VARIABLES THAT TIE INTO THIS FROM THE CITY OF TYLER MAKE UP ABOUT 90% OF THE TOTAL INCENTIVE. AND THE REASON FOR THAT IS BECAUSE THE BULK OF THIS INCENTIVE IS MADE UP OF SALES TAX, AND THE BULK OF THAT SALES TAX IS COMING FROM HOTEL MOTEL TAX, WHEREAS TYLER JUNIOR COLLEGE AND SMITH COUNTY, THE ONLY THING THEY HAVE TO OFFER IS PROPERTY TAX.

AND SO THEY'RE GOING TO BE CONSIDERING 50% ABATEMENTS OF PROPERTY TAXES FOR TEN YEARS UNDER A CHAPTER 312 AGREEMENT TO SUPPLEMENT WHAT THE CITY IS DOING IN ORDER TO MAKE THESE NUMBERS WORK AS A RISK PROTECTION, UNDERSTAND THAT ANY OF THE COMPONENTS OF THIS AGREEMENT THAT ARE NOT MET, ABSENT FORCE MAJEURE, ACTUALLY RESULT IN THE PROJECT HAVING TO RETURN THE INVESTMENT DOLLARS TO THE CITY OF TYLER. SO THERE'S A LOT OF CLAWBACKS HERE THAT PROTECT THE CITY AND PROTECT THE CITY'S INVESTMENT, BUT ALSO REFLECT THE PARTNERSHIP MOVING FORWARD OF HOW MUCH THIS HOTEL IS NECESSARY FOR TYLER AND THE

[00:55:02]

PARTNERSHIP NECESSARY TO MAKE IT HAPPEN. OKAY, STEPHANIE, IN TERMS OF ECONOMIC BENEFITS, THERE IS IN THESE NUMBERS ARE PROBABLY LOW. THESE ARE ALWAYS HEDGED DOWN A LITTLE BIT JUST TO BE SAFE, BUT PROBABLY A MAXIMUM A MINIMUM OF 60 FULL TIME EMPLOYMENT JOBS PAYROLL OF 2 MILLION. IT'S PROBABLY GOING TO BE CLOSER TO THREE BY THE TIME IT'S ALL SAID AND DONE.

BUT THESE GIVE US A SIGNIFICANT AMOUNT OF MULTIPLIERS THAT YOU CAN SEE ON YOUR SLIDES. I KNOW YOU HAVE THIS THAT ARE NOT JUST PRIMARY BUT SECONDARY AND TERTIARY BENEFITS. AND THOSE BENEFITS EXTEND DRAMATICALLY. THIS BECOMES ABOUT A $40 MILLION OVERALL BENEFIT. WHEN YOU LOOK AT ALL OF THOSE SECONDARY AND TERTIARY ECONOMIC BENEFITS, THE CITY OF TYLER. SO THE NUMBERS ARE THERE. THE NUMBERS MAKE SENSE. IT GIVES US A GOOD OPPORTUNITY TO HAVE A BASE ON WHICH A PROJECT LIKE THIS CAN OCCUR. OKAY, STEPHANIE, LONG TERM REVENUE GENERATION, YOU CAN SEE ON THE RIGHT, EVEN THOUGH WE'RE PUTTING IN $12 MILLION, THIS PRODUCES ABOUT $17.7 MILLION IN ASSESSED VALUATION. I THINK THAT NUMBER MAY BE LOW AS WELL. ANYTHING THAT COMES UP IN THAT NUMBER IN TERMS OF VALUE INCREASES THE OVERALL CONTRIBUTION AND THEN WHITTLES AWAY QUICKER AT THE OVERALL OBLIGATION. STEPHANIE, GO BACK ONE MORE. THERE WE GO.

ALRIGHT. IN TERMS OF THE ESTIMATED ANNUAL CITY PROPERTY TAX, ABOUT $400,000 OVER A 20 YEAR POST INCENTIVE AFTER THE PAYMENT IS ALL BEEN MADE. THIS IS AN $8 MILLION POSITIVE IMPACT ON THE CITY, AND ABOUT A $12 MILLION, 30 YEAR POST INVESTMENT TIME FRAME. OKAY, IN TERMS OF COST BENEFIT, LIKE I SAID, ABOUT A 4 TO 1 PRIVATE TO PUBLIC INVESTMENT RATIO, $2 MILLION IN ANNUAL EMPLOYMENT BENEFIT, MAXIMUM CONTRIBUTION OF 11 YEARS. A PROJECT LIKE THIS HOPEFULLY WILL BE OPERATING IN TYLER WHEN ALL OUR GRANDKIDS ARE IN TYLER. SO THIS IS A VERY, VERY LONG TERM INVESTMENT. TEN YEARS IS NOT A SUPER LONG TIME TO INVEST IN A PROJECT WITH THIS KIND OF IMPACT. OKAY, STEPHANIE. AND THAT'S IT. I'M HAPPY TO ANSWER ANY QUESTIONS THAT YOU MAY HAVE. AGAIN, ON BEHALF OF THE CITY TEAM AS WELL AS THE VALENCIA TEAM, I THINK THE BLACKSTONE HOTEL IS GOING TO BE A HOME RUN FOR TYLER, AND WE LOOK FORWARD TO TAKING THIS TO THE OTHER ENTITIES AND GETTING THEIR SUPPORT AS WELL. ALL RIGHT. ANY QUESTIONS FOR TRENT? I DON'T HAVE A QUESTION, BUT JUST A GENERAL COMMENT. FIRST, THANK YOU FOR YOUR WORK THAT YOU'VE DONE ON THIS PROJECT. AND I THINK THE THE WORD THAT YOU USED, CATALYTIC, I THINK DESCRIBES THIS PROJECT TO A TEE. THE AMOUNT OF ADDITIONAL GROWTH AND ADDITIONAL INVESTMENT THAT WE WILL SEE NOT JUST IN DOWNTOWN, BUT OUR CITY FROM THIS PROJECT IS GOING TO BE MONUMENTAL. SO THANK YOU VERY MUCH. YES, SIR. THANK YOU. AND ONE OTHER THING WE'RE TALKING ABOUT TAX MONEY THAT DOESN'T EXIST RIGHT NOW. I MEAN, THERE'S IT'S NOT THERE. IT'S COMING WHEN THE WHEN THE PROJECTS COMPLETE. IT'S NOT THERE. NOW. THAT'S EXACTLY RIGHT. THIS IS 100% PERFORMANCE BASED PROJECT. WITHOUT THIS WE'RE NOT GOING TO MAKE A PENNY. AND SO ALL OF THESE DOLLARS ARE THERE TO BENEFIT OF THE COMMUNITY NO DOUBT. THAT'S VERY ADMIRABLE. BUT WE'RE NOT JUST WAITING ON OUR GRANDKIDS. IT'LL HAPPEN IN OUR LIFETIME. YOU BET. WE'RE HOPING THE GRANDKIDS ENJOY IT AS MUCH AS WE GET TO ENJOY IT. BUT NO, THIS PROJECT MAXIMUM PROBABLY IS ABOUT A 42 MONTH CONSTRUCTION TIME. MORE LIKELY IT'LL BE SIGNIFICANTLY LESS THAN THAT. I KNOW YOU KNOW A PROJECT LIKE THIS, ONCE IT'S APPROVED, THEY DON'T MAKE ANY MONEY UNTIL IT'S BUILT. SO THERE IS SIGNIFICANT MOTIVATION ON THEIR PART TO GET THIS THING MOVING QUICKLY. AND WE HAVE TO MAKE SURE THAT WE PUT PARAMETERS IN THESE AGREEMENTS WITH FORCE MAJEURE AND ALL THE THINGS THAT COULD DELAY A PROJECT, BUT THEY ARE AS MOTIVATED AS YOU ARE TO GET THIS PROJECT UP. WE COULD SEE 25 WHERE THEY BEGIN IN 25, 26, 26, 26, LIKELY DEPENDING ON HOW LONG THE PERMIT PROCESS IS TAKE.

WE NEED TO BE ABLE TO GET BEFORE THE COUNTY AND TJC AND HOPEFULLY, HOPEFULLY IN THEIR SEPTEMBER MEETINGS, WE'LL HAVE THE OPPORTUNITY TO ASK FOR THEIR SUPPORT AS WELL FORMALLY.

BUT AFTER THAT, WE SHOULD BE TALKING ABOUT HOPEFULLY GETTING CONSTRUCTION PERMITS, MOVING 6 TO 12 MONTHS AND GETTING CONSTRUCTION STARTED. THANK YOU. YEAH, I'LL MAKE ONE COMMENT.

THERE MIGHT BE A COUPLE. STEPHANIE WAS ALLUDING TO. ONE OF THE FIRST EMAILS WAS AUGUST THE 17TH OF 2022. SO WE ARE APPROACHING THAT THREE YEAR ANNIVERSARY OF OUR FIRST CONTACT TO VALENCIA, ASKING THEM TO COME AND CONSIDER TYLER AS A PLACE FOR FOR A HOTEL. AND IN MY TIME ON COUNCIL THAT STARTED IN 2014, I'VE BEEN AROUND A LOT OF DEVELOPERS, AROUND A LOT OF DIFFERENT PEOPLE THAT HAVE GREAT IDEAS. AND BUT SOMETIMES THE THE, THE GOAL LINE MOVES AND THE ASKS ARE INCREASED. AND WITH THE VALENCIA GROUP, IT'S BEEN IT'S

[01:00:03]

BEEN A SOLID GOAL LINE WHERE WE'VE UNDERSTOOD WHAT THEY'VE WANTED, AND THEY KIND OF UNDERSTOOD WHAT WE HAVE TO OFFER. SO IT'S BEEN A RELATIONSHIP THAT THAT HAS INVOLVED A LOT OF VERY SERIOUS CONVERSATIONS, BUT A LOT OF INTEGRITY AND A LOT OF OF TRUST BETWEEN THE PARTIES. AND THAT'S THE KIND OF PARTNER WE WANT TO HAVE IN WHAT WE'RE DOING DOWNTOWN WITH, YOU KNOW, THE GROUNDBREAKING ON FRIDAY, WHICH WILL TAKE SEVERAL YEARS. THE TIMING OF THIS IS IS A PROJECT THAT WILL BE GENERATIONAL, NOT JUST THE DOWNTOWN PROJECT ITSELF, BUT BUT THE THE ADDITION OF THE HOTEL. SO YEAH, I'LL JUST SAY THAT THAT THE FOLKS AT VALENCIA HAVE AND I'VE TOLD YOU ALL THIS BEFORE, I MEAN, A COUPLE CHRISTMASES, THEY CAME TO OUR HOUSE FOR DINNER AND DOYLE, THE CEO, WENT TO THE RESTROOM AND HE CAME OUT OF THE RESTROOM AND HE'S HOLDING A NAPKIN IN THE NAPKIN, SAID, PLEASE LEAVE BY 9 P.M.

AND SO HE HELD THAT NAPKIN UP AND IT WAS 8:45 P.M. AND HE GOES, DO I HAVE TO LEAVE? AND I SAID, YES, YOU HAVE TO. SO IT'S JUST IT'S BEEN A GREAT RELATIONSHIP AND AND I KNOW IT'LL BE THIS WAY GOING FORWARD. AND SO I'LL JUST STOP THERE. SO ANY OTHER COMMENTS OR I MOVE TO APPROVE. SECOND. ALL RIGHT. WE GOT A MOTION BY SECOND BY NICHOLS. ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED. MOTION CARRIES. WE DO HAVE SOME FOLKS IN THE AUDIENCE FROM THE VALENCIA HOTEL GROUP. WE GOT DOYLE GRAHAM, WHO'S THE PRESIDENT AND CEO. WE GOT DAVID MILLER, WHO'S THE CFO, AND WE HAVE JENNIFER SCHULTZ, WHO'S THE VICE PRESIDENT OF CORPORATE FINANCE. THANK YOU GUYS FOR MAKING ALL YOUR TRIPS UP HERE. DOYLE, WILL YOU PLEASE COME UP AND JUST MAKE A FEW COMMENTS? WE'D LOVE TO HEAR FROM YOU. HE'S A AGGIE. THANK YOU. MAYOR.

WELL, THAT'S THIS IS VERY EXCITING. AND I WANT TO FIRST SAY THAT WE ARE REALLY EXCITED TO BE HERE AS AS BOTH MAYOR AND STEPHANIE MENTIONED, WE RECEIVED A PHONE CALL FROM THE MAYOR'S OFFICE. I CAN'T BELIEVE IT, BUT IT'S BEEN THREE YEARS AGO NOW, ALMOST TO THE MONTH, AND WE CAME UP HERE AND I'D SPENT SOME TIME YOUNGER IN IN TYLER. AND WHEN I WAS HERE, PROBABLY TEN YEARS PRIOR TO THAT TRIP, I DROVE AROUND TYLER AND DROVE THROUGH ALL THROUGHOUT DOWNTOWN LOOKING, AS I ALWAYS DO, BEING IN THE BUSINESS THAT WE'RE IN. I WONDER IF THERE ARE ANY HOTEL OPPORTUNITIES HERE IN TYLER. AND TEN YEARS AGO THAT WOULD HAVE BEEN 13 YEARS TO TODAY, AND I JUST DIDN'T SEE ANY, ANY OPPORTUNITY REALLY FOR US IN DOWNTOWN TYLER. WELL, AFTER THE MAYOR'S OFFICE CONTACTED US AND WE BROUGHT A GROUP OF FOUR OF US UP HERE ON THE FIRST TRIP, AND I, I COULDN'T BELIEVE WHAT I THE CHANGE THAT I HAD SEEN IN DOWNTOWN TYLER SINCE TEN YEARS PRIOR TO THAT. AND SO I WENT BACK TO THE TEAM AND I SAID, Y'ALL AREN'T GOING TO BELIEVE I THINK THAT THERE'S A REAL OPPORTUNITY HERE IN TYLER. WE GOT TO FIGURE IT OUT, BUT I CAN'T EXPLAIN IT. YOU'RE JUST GOING TO HAVE TO WE'RE GOING TO HAVE TO ALL LOAD UP, AND WE'RE GOING TO HAVE TO ALL AS A TEAM COME BACK TO TYLER. SO WE CAME UP, I THINK, WITH EIGHT OF US ON OUR DEVELOPMENT TEAM, AND YOU JUST HAD TO SEE IT. AND SO THE ENTIRE TEAM SAW IT. WE FELL IN LOVE WITH THE OPPORTUNITY. HAVE ALWAYS LOVED TYLER AND THE PEOPLE IN TYLER ARE AMAZING CITY. AND SO WE JUST ROLLED UP OUR SLEEVES AND SAID, DOGGONE IT, WE GOTTA FIGURE OUT A WAY TO MAKE THIS WORK. AND WE WENT DOWN ONE PATH AND WE COULDN'T FIND THE RIGHT SITE AND WE COULDN'T FIND ANYTHING WAS WOULD WORK. SIX MONTHS INTO IT, I THOUGHT WE HAD JUST ABOUT GIVEN UP. AND AND THEN THIS OPPORTUNITY CAME FOR THIS LOCATION NEXT TO THE REGIONS BANK BUILDING. AND WE BEGAN WORKING ON THAT AND THINGS STARTED KIND OF FALLING INTO PLACE. AND THEN WE STARTED LOOKING AT THE DESIGN OF THE HOTEL. AND HOW CAN WE MAKE THIS FIT ON THIS SITE? BECAUSE IT'S A SMALL SITE. AND AND THEN THROUGH OUR RESEARCH DEPARTMENT, OUR DESIGN AND DESIGN TEAM, YOU KNOW, WE'RE, WE'RE COMING UP WITH A DESIGN FOR THIS HOTEL FOR THIS SITE. AND LO AND BEHOLD, WE COME TO FIND OUT THAT THERE WAS A LUXURY HOTEL BUILT ABOUT A BLOCK FROM THIS SITE CALLED THE BLACKSTONE, AND IT OPENED ITS DOORS IN 1922. SO WHAT WE'RE ACTUALLY DOING HERE IS, IS WE'RE BRINGING BACK WITH, WITH WITH WE REFER TO AS THE REIMAGINATION, THE ORIGINAL BLACKSTONE HOTEL. WE WILL WE

[01:05:05]

WILL BE BRINGING BACK THE ONLY LUXURY FULL SERVICE HOTEL IN TYLER, TEXAS. THERE HADN'T BEEN A LUXURY FULL SERVICE HOTEL IN TYLER, TEXAS SINCE THE ORIGINAL BLACKSTONE THAT WAS BUILT IN 1922, SO WE'RE REALLY EXCITED TO BE A PART OF IT. ALL. THE COMMENTS THAT YOU ALL MADE ABOUT THIS IS GOING TO BE A BENEFIT THAT SOMETHING THAT HOPEFULLY THE ENTIRE COMMUNITY WILL ENJOY. YOUR KIDS WILL ENJOY IT, YOUR GRANDKIDS WILL ENJOY IT. AND AND WE'RE EXCITED ABOUT THAT. THAT'S THE BUSINESS WE'RE IN. THAT'S WHAT WE DO. IT'S ALL ABOUT HOSPITALITY, AND I'M LOOKING FORWARD TO COMING BACK WHEN THIS HOTEL IS OPEN FOR THE TYLER ROSE FESTIVAL, THEY'LL BE WEDDING EVENTS, THERE'LL BE BUSINESS FUNCTIONS. WE'RE GOING TO HAVE AN INCREDIBLE BALLROOM ON THE ROOF OF THIS HOTEL. AND IT'S IT'S GOING TO BE IT'S GOING TO BE A GREAT DESTINATION. AND NOT TO MENTION THE FACT THAT IT'LL BE A GREAT PLACE FOR ALL THE VISITORS THAT YOU'LL BE HAVING COMING TO TYLER OVER THE NEXT 50 YEARS. SO THANK YOU ALL VERY MUCH. WE'RE EXCITED. THANK YOU, THANK YOU. WELL, EXCITING TIME IN TYLER, TEXAS. I'LL

* This transcript was compiled from uncorrected Closed Captioning.