[5E. Update from the City Council and Management: Financial Position, Major Projects, Operational Issues, Upcoming Dates of Interest and Items of Community Interest.]

>> MAYOR MARGOLIS: IS THAT IT, ALL RIGHT. WE'LL MOVE ON TO THE NEXT ITEM. OUR NEXT ITEM. OUR NEXT ITEM IS NEXT ITEM. OUR NEXT ITEM IS 5E. UPDATE FROM THE CITY COUNCIL AND MANAGEMENT: FINANCIAL POSITION, MAJOR PROJECTS, OPERATIONAL ISSUES, UPCOMING DATES OF INTEREST AND ITEMS OF COMMUNITY INTEREST. MAKING THOSE ANNOUNCEMENTS IS DEPUTY MAYOR

PRO TEM SHINDER. >> HAVE YOU FOR GOTTEN TO RETURN LIBRARY ITEMS ON TIME? ARE YOU AFRAID THAT OUR NEWLY SWORN IN POLICE CHIEF WILL KNOCK ON YOUR DOOR? NOT GOING TO HAPPEN. NO WORRIES, IT'S FOOD FOR FINES IN THE LIBRARY. GET A DOLLAR OFF FOR EACH ITEM THAT I APPLY FOR A LIBRARY. LIFE MESSAGE FOOD PANTRY AND HOPE IN HAND FOOD PANTRY. SO, BRING IN THOSE ITEMS AND KNOCK OUT THOSE LIBRARY FUNDS. THE TWELVE DAYS OF CHRISTMAS BEGINS ON NOVEMBER 28TH. DECORATE A GINGER BREAD HOUSE, CRAFT YOUR LETTERS TO SANTA, OR TAKE IN A CHRISTMAS. I GOT CUT OFF THERE. UM, WHERE WAS MY MOVIE. OKAY.

THESE ARE JUST SOME OF THE FAMILY FUN EVENTS THAT ROWLETT PARKS AND RECREATION HAS PLANNED. WE HOPE TO SEE YOU OUT THERE THIS HOLIDAY SEASON. ON THE 6TH DAY OF CHRISTMAS, NOW, IF IT BEGINS ON THE 28TH, THAT WOULD BE, WELL, WE'LL FIGURE IT OUT. JOIN US FOR MAIN STREET FEST AND THE HOLIDAY PARADE. A FESTIVE EVENING OF LIVE PERFORMANCES, SHOPPING, KID'S ACTIVITIES AND THE ANNUAL LIGHTING PARADE. SATURDAY, DECEMBER 3RD, 5-8:00 P.M. IN THE VILLAGE OF ROWLETT DOWNTOWN. WE EVEN HEARD THAT SANTA CLAUSE WILL BE STOPPING BY TO GET A PICTURE WITH ALL THE KIDS OF BEFORE ALL OF THAT, THE CITY OF ROWLETT FACILITIES WILL BE CLOSED THURSDAY AND FRIDAY, NOVEMBER 24TH AND 25TH FOR THE THANKSGIVING HOLIDAY. EVERYONE WILL BE AT HOME EATING TURKEY, SO, YOU WON'T EVEN MISS IT. AS ALWAYS, EMERGENCY SERVICES WILL BE AVAILABLE 24/7. THERE'LL BE NO TRASH, RECYCLING OR BULK COLLECTION ON THANKSGIVING DAY.

SERVICES WILL BE DELAYED BY ONE DAY SO YOU DON'T HAVE TO WAIT TOO LONG FOR THEM TO PICK UP ALL THE TRASH THAT YOU MADE WHILE EATING ALL OF THAT FOOD. FOR MORE INFORMATION ON THESE AND ALL OTHER CITY RELATED INFORMATION, PLEASE VISIT ROWLETT.COM. OR CALL THE ACTION CENTER AT 972-412-6100. AND, NOW, WE HAVE OUR ANIMAL OF THE MEETING. TONIGHT'S FEATURE FROM THE ANIMAL SHELTER IS NAMED HOMER, HE'S THE NEW KID ON THE BLOCK, SOMEHOW HE MADE HIS WAY TO OUR SHELTER AFTER HIS ADOPTION FROM THE FORT WORTH SHELTER A YEAR AGO. HE'S A LITTLE OVER 1-YEAR-OLD, AND IS 57 POUNDS AND IS FRIENDLY TO ALL, DOGS, KIDS, AND PEOPLE. DOESN'T SAY ANYTHING ABOUT CATS, THOUGH. HE LOVES TO GIVE HUGS AND HE LOVES HIS NEW BEST FRIEND FOREVER, LUCY. HOMER IS A BIG GENTLE BOY WHO IS GREAT ON HIS LEASH AND IS ALWAYS SMILING DESPITE NOT LIKING BEING LOCKED UP. THE GOOD NEWS IS THAT HOMER'S ALREADY NEWTTURED SO HE'S READY TO JUMP IN THE CAR AND GO HOME. ALL ADOPTIONS.

CONTACT THE ANIMAL SHELTER TO MEET HOMER AND HOPEFULLY TO MAKE

HIM PART OF YOUR FOREVER FAMILY. >> MAYOR MARGOLIS: THANK YOU.

COUNCIL, ANY OTHER UPDATES OR ANNOUNCEMENTS? ALL RIGHT.

THAT'S A FIRST. ALL RIGHT. SO, WE WILL NOW MOVE INTO OUR NEXT

[6. CITIZENS’ INPUT]

ITEM WHICH IS ITEM 6, CITIZENS' INPUT. AT THIS TIME, COMMENTS WILL BE TAKEN FROM THE AUDIENCE. COUNCIL, PRIOR TO ENTERING THE REGULAR SESSION, DECIDED TO PULL ITEM 7E REGARDING THE LAKELAKES ADVISORY COMMITTEE. WE PULLED IT OFF OF THE AGENDA WE HAVE MORE DISCUSSION THAT WE WANT TO HAVE BEFORE BRINGING IT BACK.

[00:45:01]

BUT, IT WILL COME BACK IT A FUTURE MEETING. SO, LAURA, DO

WE HAVE ANY CARDS? >> (INAUDIBLE)

>> IF YOU COULD PLEASE STATE YOUR NAME AND CITY OF RESIDENCE

FOR THE RECORD. >> AN ISSUE HAS RECENTLY COME TO LIGHT REGARDING EXISTING STORAGE SHEDS BUILT PRIOR TO DECEMBER 2019 IN THE CITY OF ROWLETT. PRIOR TO DECEMBER 2019, THE CITY OF ROWLETT DID NOT REQUIRE A PERMIT REVIEW PROCESS FOR ATTACHED STRUCTURES IN ORDINANCE 03619, HOWEVER THE UPDATE OF THE ORDINANCE ALSO DID NOT ADDRESS THE EXISTING ISSUE. BECAUSE OF A DISGRUNTLED NEIGHBOR WHO FILED A COMPLAINT, MY SHED OF 18 YEARS WAS FOUND TO BE OUT OF COMPLIANCE. I HAD TO REQUEST A WAIVER FROM THE BOABOARD OF ADJUSTMENTS, THE PROCESS WAS ARDUOUS, AND I WOULD HATE TO HAVE ANY OTHER HOMEOWNER HAVE TO GO THROUGH THIS PROCESS. PLEASE CONSIDER ADDING THE DISCUSSION AND IT CONSIDERATION OF AN ORDINANCE TO MAKE SHEDS PRIOR TO THE ENACTMENT OF ORDINANCE 03619 AS COMPLIANT OR GRANDFATHERED TO THE CITY AGENDA. ACCESSORY STRUCTURES SUCH AS SETBACKS, UNFORTUNATELY, THE CURRENT APPROACH TO THE VERY COMMON PROBLEM IN THE CITY IS TO REQUIRE HOMEOWNERS TO MEET THESE STANDARDS YEARS LATER. AND AT A GREAT EXPENSE AND LOSS TO SOME HOMEOWNERS. WE WOULD BE GRAD TO DISCUSS THIS WITH ANY MEMBER WHO NEEDS MORE INFORMATION. JUST

CONTACT ME. THANK YOU. >> MR. TASHIC, YOU HAD A SECOND ITEM, DO YOU WISH TO SPEAK TO THAT?

>> (INDISCERNIBLE)

>> OKAY. THANK YOU. >> DAVE HALL DID YOU WISH TO

SPEAK TO THAT ITEM? >> PLEASE STATE YOUR NAME AND CITY OF RESIDENCE FOR THE RECORD.

>> DAVE HOLL, ROWLETT, IN LIGHT OF THE PRESENTATION BY THE VETERAN, I WOULD LIKE TO FOREGO TALKING ABOUT THE LAKE ADVISORY COMMITTEE AND JUST REMIND YOU THAT AT PADDLE POINT PARK WE HAVE AN ACTIVE CHAPTER OF HEROS ON THE WATER THAT GETS VETERANS OUT AND WITH KAYAK FISHING HELPS. IN ADDITION WE HAVE A NEW CHAPTER THAT'S STARTING UP AT PADDLE POINT PARK THAT WILL HELP VETERANS WITH KAYAK FISHING IN THEIR RECOVERY AND LAST MONTH I WAS NOTIFIED BY TEAM RIVER RUNNER THAT WE HAVE A CHAPTER NOW IN ROWLETT, DALLAS, NORTH TEXAS. TEAM RIVER RUNNER ORIGINAL NATURED WITH WALT TERRE REID AND TAKES VETERANS OUT IN TRAINING AND WHITE WATER KAYAKING AND HELPS THEM ON THE RETURN. SO, WE HAVE A NUMBER OF VERY HONORABLE THINGS TAKING PLACE AT PADDLE POINT PARK AND I BELIEVE EVERYBODY CAN GET INVOLVED AND HELP WITH THE PROCESS. THANK YOU.

>> THANK YOU. >> OUR NEXT SPEAKER IS STEVEN

HOROWITZ. >> STATE YOUR NAME AND CITY OF

RESIDENCE, PLEASE. >> STEVE HOROWITZ, ROWLETT, I LIKE DAVE WILL SUSPEND CERTAIN REMARKS, I WANT TO THANK YOU FOR YOUR HONORING OF VETERANS, THANK YOU, GABRIEL T JUST TO ALL THE CITY COUNCIL MEMBERS AND THE MAYOR, WALK THE BRIDGE.ORG IS THE WEBSITE AND IT'S ON THE 22ND OF EVERY MONTH. NOW, THAT THINGS ARE GETTING DARKER, WE'RE GOING TO START AT 6:00 P.M. FOR THE WALKS. THE 6:00 P.M. WALKS GO THROUGH, UM, WHAT IS IT ARE MARCH AND THEN WE'LL GO BACK TO 6:30 P.M. BUT, A WEEK FOR TODAY IS THE NEXT WALK THE BRIDGE, WE START ON THE ROCKWALL PUT INSIDE OF THE BRIDGE, WE WALK HALFWAY DOWN AND HALFWAY BACK. WE WOULD LOVE TO SEE YOU THERE. ALSO, THANK YOU, GABRIEL FOR ALLOWING US TO CONTEST FOOTBALL. AND I WOULD LIKE TO REMIND THE COUNCIL AND THE MAYOR THAT WE DO HAVE A ROCKWALL SIDE OF ROWLETT. AND GO JACKETS, GLOBE LIFE FIELD FRIDAY NIGHT WE'RE IN THE AREA

PLAYOFFS. THANK YOU. >> THANK YOU.

>> I DON'T HAVE ANY OTHER CARDS.

>> MAYOR MARGOLIS: ALL RIGHT. THEN IN THAT CASE, WE'LL MOVE ON TO THE NEXT ITEM WHICH IS, OH, YEAH, WE DID, COUNCIL DID

[00:50:05]

RECEIVE ONE PUBLIC INPUT FORM REGARDING ITEM 7E, AND AGAIN,

[7. CONSENT AGENDA]

WE'RE GOING TO POSTPONE THAT TO A FUTURE MEETING.

>>> OUR NEXT ITEM IS THE CONSENT AGENDA, THESE ITEMS WILL BE ACTED UPON IN ONE MOTION. COUNCIL HAS PULLED 7E FROM THE AGENDA. DOES ANYONE IN ATTENDANCE WISH TO PULL ANY OTHER ITEMS FOR INDIVIDUAL CONSIDERATION? SEEING NONE, PLEASE READ THE CONSENT AGENT ITEMS INTO THE RECORD. 7

>> 7A, CONSIDER APPROVING THE MINUTES.

>>> 7B CONSIDER ACTION AUTHORIZING THE PURCHASE OF TWO POLICE MOTORCYCLES WITH WARRANTY TEES AND SERVICE PACKAGE. 7 C, CONSIDER ACTION AUTHORIZING THE PURCHASE OF AN OFF-ROAD AMBULANCE. 7D, CONSIDER ACTION AUTHORIZING THE PURCHASE OF A FIRE VEHICLE AND ASSOCIATED EQUIPMENT. 7F, CONSIDER ACTION APPROVING AN ADDITIONAL CONTINGENCY FOR THE DALROCK SOUTH CURVE IMPROVEMENT PROJECT. 7G CONSIDER ACTION AWARDING A CONTRACT FOR ALLEY RECONSTRUCTION.

>> 7H, CONSIDER ACTION AWARDING A CONTRACT FOR ALLEY

RECONSTRUCTION. >> AND 7I CONSIDER ACTION AWARDING A CONTRACT FOR THE ALLEY RECONSTRUCTION. 7J CONSIDER ACTION APPROVING A PURCHASE ORDER FOR UTILITY BILL PRINTING AND MAILING SERVICES. AND 7K, CONSIDER ACTION AMENDING THE FISCAL YEAR 2022 ADOPTED BUDGET.

>> I MOVE THAT WE APPROVE THE ITEMS WHICH WERE READ INTO THE

RECORD. >> COUNCILMAN BELL?

>> I SECOND. >> MAYOR MARGOLIS: MOTION BY MAYOR PRO TEM WINGET AND SECOND BY MAYOR PRO TEM BELL. CALL THE

VOTE. >> THAT ITEM PASSES UNANIMOUSLY. WE'LL NOW MOVE ONTO INDIVIDUAL CONSIDERATION ITEM. WHICH IS, ITEM 8B CONDUCT A -- 8A.

[8A. Conduct a second public hearing on the annexation of Vinson Road, an orphaned roadway in the unincorporated area of Dallas County.]

>> MAYOR MARGOLIS: SORRY. I GOT EXCITED. YOU SAID 8A? SORRY. IT'S OUT OF MY PACKET. SO, I'LL HAVE TO GO TO THE IPAD.

SOMETHING'S WRONG HERE. SO, CONDUCT A PUBLIC HEARING ON THE ANNEXATION OF VINSON ROAD AND THE ORPHANED ROADWAY IN THE UNINCORPORATED AREA OF DALLAS COUNTY.

>> GOOD EVENING, MAYOR, COUNCIL, THANK YOU, I'M HERE TO PRESENT BACKGROUND INFO ON THE SECOND PUBLIC HEARING THAT WE'RE HAVING FOR THE VINSON ROAD ANNEXATION. IN 2011, DALLAS COUNTY AND THE CITY ENTERED INTO AN MCIP MASTER AGREEMENT WHICH IS A MASTER AGREEMENT GOVERNING MAJOR CAPITAL IMPROVEMENT PROGRAM AND THAT SETS FAITH A FRAMEWORK FOR THE COUNTY TO SET FORTH FUNDING FOR THE CITY FOR CAPITAL IMPROVEMENT PROJECTS.

THE MASTER AGREEMENT WAS RENEWED BY THE COUNTY AND THE CITY IN 2021. IN THE MASTER AGREEMENT THERE IS AN ORPHANED ROAD CLAUSE THAT BASICALLY PROVIDES FOR THE COUNTY TO EITHER PRIORITIZE CAPITAL IMPROVEMENT PROJECTS IN CITIES THAT HAVE PLANNED OR HAVE ALREADY ANNEXED ORPHANED ROAD SEGMENTS. THEY CAN ALSO REFUSE TO PARTICIPATE WITH CAPITAL IMPROVEMENT PROJECTS IN CITIES THAT HAVE NOT ANNEXED ORPHANED ROADS IT. AND THEY CAN SELECT SPECIFIC ORPHANED ROADS FOR IMPROVEMENT AFTER THE CITY IS ANNEXED AND THOSE CAN BE IMPROVED BY THE CITY AS AN MCI PROJECT. AN ORPHANED ROAD IS DEFINED IN THE AGREEMENT ALL OR PART OF A WAY OUTSIDE THE CORPORATE LIMITS OF THE CITY AND WHERE THOSE INCORPORATED AREA OF THE CITY ABUTS OR EXTENDS INTO THAT RIGHT-OF-WAY. SO, WE HAVE TRAIL CREEK PARTNERS THAT IS DEVELOPING THE TRAILS OF COTTON WOOD CREEK IT'S A MULTIPHASE SINGLE-FAMILY DEVELOPMENT. ON 227 ACRES. AND YOU CAN SEE, THE RED, UM, SEGMENT THAT IS SHOWN TO THE IMAGE AT THE LEFT THIS IS

[00:55:06]

VINSON ROAD, THAT'S A TWO-LANE ASPHALT ROADWAY WHICH SKIRTS THE WESTERN PERIMETER OF THAT PROJECT AND IT SERVES AS A PRIMARY LINK FOR TRAFFIC BETWEEN GEORGE BUSH TURNPIKE AND THE SOUTHERN REGION. CITY OF WYLIE. SO, THE ENTIRETY OF THE TRAILS OF COTTCOTTONWOOD CREEK DEVELOP LIES WITHIN THE CITY OF ROWLETT.

AND VINSON ROAD IS NOT. VINSON ROAD MEETS THE DEFINITION OF AN ORPHANED SEGMENT. AND SO NOW THAT THE TRAILS OF COTTONWOOD CREEK IS BEING DEVELOPED, DALLAS COUNTY ASK THAT THE CITY ANNEX THAT PORTION OF VINSON ROAD. AND FORMERLY REQUESTED MUCH ON OCTOBER 18TH. THE RIGHT-OF-WAY TO BE ANNEXED IS 1860-FEET LONG WITH THE INTERSECTION NORTH TO THE CITY OF GARLANDS TRANSMISSION LINE EASEMENT. VINSON ROAD NORTH OF THAT ABUTS DALLAS OR UNINCORPORATED DALLAS COUNTY SO IT'S NOT MANAGEABLE FOR US TO INCORPORATE. PRODUCED A LEGAL DESCRIPTION AND A MAP AND UPON ANNEXATION, WE WILL BE RESPONSIBLE FOR MAINTAINING THAT ROADWAY INCLUDING THINGS LIKE SWEEPING, PATCHING AND OTHER VARIOUS REPAIRS AND THERE'S A BOX CULVERT THAT WE WOULD NEED TO MAINTAIN AND THERE'S, OF COURSE, POSTING AND MAINTAINING TRAFFIC SIGNS, ENFORCEMENT OF THE TRAFFIC REGULATIONS AND TRUCK ROUTES AND RESPONDING WITH POLICE AND FIRE TO VEHICULAR ACCIDENTS. GOVERNED BY THE TEXAS LOCAL GOVERNMENT CODE IN SECTIONS 43.1055 AND 43.106 AND ALSO IN SUB-CHAPTER C-1, THAT SET FORTH NOTIFICATION REQUIREMENTS THAT INCLUDES PUBLICATION OF NOTICES, A WEBSITE POSTING AND PREPARATION AND ADOPTION OF AN ORDINANCE. SO, PUBLIC HEARING NOTICES WERE SENT BY CERTIFIED LETTER ON SEPTEMBER 30TH, TO 6 INDIVIDUAL PROPERTY OWNERS THAT ABUT THE VINSON ROAD PROPOSED ANNEXATION TO THE ONE LIMITED PARTNERSHIP WHOSE PROPERTY ALSO ABUTS IT, THAT, OF COURSE IS TRAIL CREEK PARTNERS DOING TRAILS AT COTTONWOOD CREEK ADDITIONALLY, A NOTICE WAS PUBLISHED IN THE "DALLAS MORNING NEWS" ON SUNDAY OCTOBER 23RD, WEDNESDAY, OCTOBER 26TH, AND SUNDAY ON OCTOBER 30TH, AND THE SAME NOTICE HAS BEEN POSTED ON THE CITY'S PUBLIC BULL TIN BOARD SINCE OCTOBER 12TH AND HAS REMAINED THERE DURING THIS PROCESS INCLUDING UP UNTIL TODAY. SO, THE COST TO MAINTAIN VINSON ROAD IS ESTIMATED AS YOU COULD SEE THERE, A LIST OF COSTS, WE SPENT $4,500 FOR THE SURVEY AND A LITTLE OVER $2,000 FOR THE NOTICE AND WE ESTIMATE $200 A YEAR FOR STREET SWEEPING AND CRACKED CEILINGS, AND ANOTHER $500,000 A YEAR FIXES POTHOLES WHILE THE ROADWAY'S ASPHALT WOULD BE $500 A YEAR.

AND WHEN THE ROAD IS CONCRETE, WE ESTIMATE $1,800 A YEAR TO FIX THOSE. BRIDGE MAINTENANCE IS COMPLICATED AND THAT WOULD BE BID AS NEEDED. THOSE COSTS WERE DETERMINED BY WORKING WITH PUBLIC WORKS AND LOOKING AT CURRENT ESTIMATES OF WHAT THEY SPEND ON THOSE TYPES OF PROCEDURES AND OF COURSE, EXTRAPOLATING IT BASED ON THE LENGTH AND THE NUMBER OF LANES THAT WE'RE ANNEXING. OF COURSE, SOME COSTS MAY NOT BE INCURRED EACH YEAR. SO, THE RECOMMENDED ACTION, THIS IS THE SECOND REQUIRED PUBLIC HEARING. THE FIRST WAS HELD ON NOVEMBER FIRST, AND STAFF REQUESTS COUNCIL ACTION ON. THAT CONCLUDES MY PRESENTATION AND I'LL HAPPY TO ANSWER ANY

QUESTIONS. >> COUNCIL, ANY QUESTIONS.

>> MAYOR MARGOLIS: ALL RIGHT. THEN, I WILL OPEN THE PUBLIC HEARING, ANYONE WISHING TO MAKE A COMMENT, YOU'LL HAVE THREE MINUTES, PLEASE COME TO THE PODIUM, SPEAK INTO THE MICROPHONE AND STATE YOUR NAME AND CITY OF RESIDENCE FOR THE RECORD. DO WE HAVE ANY? ALL RIGHT, I WILL NOW CLOSE THE

[8B. Conduct a public hearing under Section 311.003 of the Texas Tax Code for the creation of a Tax Increment Reinvestment Zone to be known as the North Shore TIRZ #4, containing approximately 1,686.66 acres of land in the area known generally located near the President George Bush Turnpike, North of Lakeview Parkway, and being wholly located within the corporate limits of the City of Rowlett, Texas.]

[01:00:04]

PUBLIC HEARING AND WE MOVE ON NOW TO ITEM 8B. CONDUCT A PUBLIC HEARING UNDER SECTION 311.003 OF THE TEXAS TAX CODE FOR THE CREATION OF A TAX INCREMENT ZONE TO BE KNOWN AS THE NORTH SHORE TIRZ NUMBER 4 CONTAINING APPROXIMATELY 1686.66 ACRES OF LAND IN THE AREA KNOWN GENERALLY LOCATED NEAR THE PRESIDENT GEORGE BUSH TURNPIKE NORTH OF LAKEVIEW PARKWAY AND BEING WHO'LLY LOCATED WITHIN THE CORPORATE LIMITS ON THE CITY OF

ROWLETT, TEX EX-TEX. >> JUST TO GIVE BACKGROUND ON THIS, YOU'RE TALKING ABOUT CREATING A TAX INCENTS MEANT REINVESTMENT ZONE OR TIRZ, AND THE THE PUBLIC HEARING WAS SET BY RESOLUTION ON OCTOBER 18TH, AND IT HAS BEEN ADVERTISED IN THE "DALLAS MORNING NEWS" ON NOVEMBER THE 8TH. AND IT WAS PUBLISHED ON THE CITY'S WEBSITE AND BULL LIT BULLETIN BOARDS.

AND YOU CAN CAPTURE THE INCREMENT AND THE CHANGE IN THE TAX VALUE TO BE USED FOR ECONOMIC DEVELOPMENT GRANTS.

SO, IT COULD BE UTILITIES, INFRASTRUCTURE, LANDSCAPING, STREETSCAPES AND THOSE TYPES OF IMPROVEMENTS. JUST SO YOU KNOW, ROWLETT HAS TWO ACTIVE IMPROVEMENT DISTRICTS WWITH BAYSIDE AND SAPPHIRE BAY. AND DOWNTOWN ROWLETT. SO, THE STEPS TO CREATE A TIRZ IS WE CREATE A PRELIMINARY PROJECT AND WE BEEN WORKING WITH PETTY AND ASSOCIATED AND KIRK MCDANIEL IS HERE TO ANSWER ANY QUESTIONS AS WELL. THEY HELPED US TO CRAFT THE DOCUMENT THIS EVENING AND OBVIOUSLY YOU HOLD THE PUBLIC HEARING SO THAT CAN BE VIEWED AND VETTED OUT IN THE COMMUNITY.

AND THE NEXT STEP IS TO DESIGNATE THE TIRZ THROUGH THE ORDINANCE AND THE NEXT STEP WOULD BE AT THE DECEMBER 6TH MEETING TO PREPARE THE FINAL PROJECT PLAN, SO, WE'VE GOT SOME MAPS AND OTHER THINGS TO GET IT INTO FINAL FORM. BUT, WE'LL HAVE THAT ON DECEMBER 6TH FOR YOUR FINAL APPROVAL. AND THE TIRZ BOARD WOULD ALSO LOOK AT IT AT THAT TIME TO MAKE A RECOMMENDATION TO COUNCIL FOR APPROVAL AND THEN THERE'S ANNUAL REPORTING WHICH TAKES PLACE AS WELL THAT WOULD GO BEFORE THE BOARD AND THE COUNCIL AS WELL. SO, THE STRUCTURE OF THIS TIRZ DISTRICT WOULD BE THAT 50% OF THE NEW INCREMENT, THAT IS CREATED BY ANY NEW DEVELOPMENT WOULD GO INTO THE TIRZ PROJECT FUND AND FOR THE PORTION WHICH IS JUST THE JACKSON SHAW DEVELOPMENT WHICH IS ON THE EAST SIDE OF THE GEORGE BUSH, THEY WOULD RECEIVE 50% OF THE INCREMENT IN THEIR DEVELOPMENT, AND 40% WHAT'S CREATED IN THE REST OF THE DISTRICT UP TO A CAP OF $15.1 MILLION. AND WE'LL GO THROUGH WHAT THOSE PROJECTS ARE HERE IN A MOMENT. THE TIRZ, THE PART THAT THEY WOULD RECEIVE IS FOR A PERIOD OF ONLY 22 YEARS. WE THINK THAT $15 MILLION WILL BE PAID BACK TO THEM MUCH MORE QUICKLY THAN THAT. BUT, THE DESIGNATED PERIOD IS 22 YEARS. THE ENTIRE LENGTH OF THE TIRZ IS 30 YEARS. AND THERE ARE CITY PROJECTS DESIGNATED AS WHAT ARE CALLED TIER TWO PROJECTS IN THERE. SO, WE'VE DESIGNATED

[01:05:03]

ABOUT $117.5 MILLION OF PROJECTS THAT THE CITY COULD USE THE TIRZ FUNDS FOR FOR SO, THIS SLIDE SHOWS YOU PROS PROJECTS THAT CAN HE TALKED ABOUT. TIER ONE IS THE JACKSON SHAW PROJECTS, THE MERIT ROAD EXTENSION, MERIT ROAD WATER LINE, STORM DRAINAGE AND THE ECONOMIC DEVELOPMENT GRANT PORTION IS FOR THE RETAINING WALL AND THE ELECTRIC UNDER GROUNDING THAT WILL OCCUR. AND THEBE THEN THE TIER TWO PROJECTS WE WORKED WITH STAFF WITH ANYTHING THAT WE COULD THINK OF THAT WOULD QUALIFY THE TIRZ.

THE ROADWAY CONNECTORS, THE PUBLIC SAFETY FACILITY THERE AS WELL AND THEN FUNDING FOR ECONOMIC DEVELOPMENT GRANTS WHICH COULD BE USED FOR OTHER FUTURE DEVELOPMENT PROJECTS THAT MIGHT NEED ASSISTANCE AS WELL. ALL IN ALL, THOSE PROJECTS TOTAL $133.1 MILLION. SO, THE INCREMENT IS EXPECTED TO GENERATE $136.1 BILLION, SO, THE OTHER 50% OF THE SAME AMOUNT COMES TO THE CITY'S GENERAL FOUND FROM THE PROPERTY TAXES WHICH ARE ALREADY BEING CREATED. AGAIN, IT USES '22 AS THE BASE YEAR. SO, THIS YEAR, BY APPROVING IT IN '22 IT'S THE BASE YEAR OF THIS YEAR. AND THE PROJECTED PROJECTS THAT WE THINK WILL COME AND FOLLOW ALL OF THIS ARE PROJECTED TO BE AT $1.4 BILLION IN ADDED TAX VALUE. SO, WE THINK, OBVIOUSLY, THE JACKSON SHAW PROJECT IS AN I IMPATUS OF MORE VALUE TO COME.

MANY OTHER DEVELOPERS COMING IN, THAT THE ZONE IS FEASIBLE AND THAT THE IMPROVEMENT OF THE AREA WILL ADD VALUE TO THE BENEFIT OF THE CITY. AND SO, UM, THAT IS WHAT YOU'RE APPROVING AND CONSIDERING THIS EVENING. AND ALSO, THE COMPOSITION OF THE TIRZ BOARD WHICH AGAIN IS PRIMARILY, AS YOUR SEAT IS PLACED ON CITY COUNCIL AND THERE IS A SEAT ALSO, A PLACE EIGHT, SHOULD DALLAS COUNTY CHOOSE TO PARTICIPATE. WE'RE STILL IN DISCUSSIONS WITH THEM. THEY HAVE A POLICY AND CERTAIN THINGS STILL NEED TO BE MET. SO, WE'RE TALKING WITH THEM TO SEE IF WE MEET THE CRITERIA. SO, THE REQUESTED ACTION IS FOLLOWING THE PUBLIC HEARING TO APPROVE THE ORDINANCE TO ESTABLISH THE TIRZ AND THE BOARD, AS WELL AS THE PRELIMINARY PLAN THAT WE GO

WITH THAT. SO, THAT IS IT. >> MAYOR MARGOLIS: I HAVE ONE QUESTION FOR NOW. THANK YOU FOR THAT PRESENTATION, BY THE WAY.

SO, DO WE HAVE A COST ANALYSIS OF WHAT THE DIFFERENCE IS OF THE 10% OF THAT 50% AND THE NORTH SHORE OTHER THAN THE IMMEDIATE JACKSON SHAW DEVELOPMENT? DO WE KNOW WHAT THE BREAKDOWN IS, YOU KNOW, WHAT WE PROJECT ANNUALLY TO THE TIRZ? IT'S FINE IF WE DON'T HAVE THE ANSWER TONIGHT, I'M JUST OUT OF CURIOSITY.

>> CALLING FOR REENFORCEMENTS. >> GOOD EVENING, THANK YOU, WE HAVE THAT INFORMATION AVAILABLE AS PART OF THE BACK END OF FEASIBILITY. BUT, I DON'T HAVE IT READILY AVAILABLE RIGHT NOW, BUT I COULD GET IT TO YOU TOMORROW.

>> MAYOR MARGOLIS: PLEASE, DO, I WOULD LIKE TO SEE THAT. AND TIER ONE IS OBVIOUSLY, THE FUNDING, THE FIRST, WHAT, YOU SAID ROUGHLY 10 YEARS OF THE TIRZ FOR JACKSON SHAW, RIGHT? THAT WOULD BE THE PAYBACK PERIOD?

>> 10 TO 12 YEARS. >> MAYOR MARGOLIS: SO THEN TIER TWO WOULD KICK IN AFTER THAT? OR WHEN, I GUESS?

>> A PORTION OF THE FUNDS OF THE WAY THAT THE ZONE IS BEING SPLIT CURRENTLY, SO THE JACKSON SHAW DOLLARS, THE NEW INCREMENT GENERATED GOING INTO THE TIRZ FUND IS USED SOLELY FOR THE

[01:10:01]

$15 MILLION. BUT, WHENEVER IT COMES TO THE INCREMENT OUTSIDE OF THE JACKSON SHAW PROPERTY, THE MAJORITY OF DOLLARS GOES TO REIMBURSING THE JACKSON SHAW BUT THERE'S ANOTHER PART THAT GOES

TO WORKING ON. >> THAT'S WHY I WANT TO KNOW WHAT THAT NUMBER IS, AND WHAT THE PROJECTIONS ARE. THANK YOU.

>> COUNCIL, ANY OTHER QUESTIONS?

>> MAYOR MARGOLIS: WE USUALLY DO QUESTIONS AND THEN THE PUBLIC HEARING. YEAH, I MEAN, I CAN TAKE QUESTIONS AFTER THE PUBLIC HEARING TOO. ANY OTHER QUESTIONS? ALL RIGHT. THEN I'LL OPEN THE PUBLIC HEARING. ANYONE WISHING TO MAKE A COMMENT, YOU'LL HAVE THREE MINUTES, PLEASE COME UP TO THE PODIUM AND SPEAK YOUR NAME AND CITY OF RESIDENCE INTO THE

RECORD. >> OUR FIRST SPEAKER IS MICHAEL

GALLOPS. >> MY NAME IS MICHAEL GALLOPS AND I RESIDE IN THE CITY OF ROWLETT. GOOD EVENING, MAYOR, COUNCIL, AND STAFF, HERE ON BEHALF OF THE ROWLETT CHAMBER OF BUSINESS AND OUR BUSINESS COMMUNITY, PART OF WHICH, THE SMALL BUSINESS COMMUNITY WE RECOGNIZED EARLIER TONIGHT. THE ESTABLISHMENT OF THE NORTH SHORE TIRZ IS CRITICAL FOR THE LAKE SHORE BUSINESSES TO BE DEVELOP AND FOR FUTURE DEVELOPMENT OF THE AREA DUE TO THE MASSIVE AMOUNT OF INFRASTRUCTURE IMPROVEMENTS NECESSARY FOR THE DEVELOPMENT TO OCCUR INCLUDING ROADWAYS, WATER, AND SEWAGE AND UPGRADES TO THE ESSENTIAL SYSTEMS. EXISTING DEVELOPMENTERS WITH VITAL INFRASTRUCTURE PROJECTS SUCH AS THE EXTENSION TO THE MERIT ROAD TO LIBERTY ROAD EX-TENSE, WATER AND STORM WATER IMPROVEMENTS AND OTHER INFRASTRUCTURE AS IDENTIFIED ON THE MASTER THOROUGH FAIR PLAN. INDEED, THE MERE MENTION OF THE TIRZ HAS ALREADY DRAWN INTEREST FROM POTENTIAL DEVELOPERS BECAUSE IT SHOWS THE CITY'S AND YOUR COMMITMENT SHOWING SUPPORT IN THE AREA OF ROWLETT. THE ROWLETT CHAMBER AND BORED OF DIRECTORS CONTINUE TO REMEMBER SUPPORT THE PROJECT. AS IT WILL SUPPORT BOTH THAT PROJECT AND FUTURE DEVELOPMENTS. WE STRONGLY ENCOURAGE YOU TO VOTE IN FAVOR OF THE NORTH SHORE TERSE NUMBER FOUR AS IT IS LAID OUT AND DESCRIBED IN YOUR PACT.

THANK YOU. >> MAYOR MARGOLIS: NO OTHER COMMENTS? ALL RIGHT. THEN I WILL NOW CLOSE THE PUBLIC HEARING. AND DO WE HAVE ANY OTHER QUESTIONS OR STATEMENTS?

COUNCIL MEMBER GALUARDI? >> LIBBY, JUST A COUPLE OF QUICK QUESTIONS. SO, I SEE, THE TIER TWO POTENTIAL INVESTMENTS HAD SOMETHING CALLED THE NORTH SHORE BACK EDGE ROAD.

>> YES. >> WHAT IS A BACKAGE ROAD?

>> MAYOR MARGOLIS: THE OPPOSITE OF A FRONTAGE ROAD.

>> OKAY. >> TECHNICALLY, YOU HAVE A FRONTAGE ROAD WHICH IS ADJACENT TO THE HIGHWAY, IT'S PART OF THE HIGHWAY RIGHT-OF-WAY SYSTEM. THE BACKAGE ROAD IS SET OFF FROM THAT, SO THAT, THERE IS ANOTHER, CORRIDOR THAT DOESN'T GET, YOU KNOW, INTERFERED WITH TRAFFIC GOING IN AND OUT OF THE BUSINESSES OFTEN LINE A FRONTAGE ROAD, YOU KNOW, DRIVEWAY ACCESS.

PLUS, IT AFFORDS, TXDOT FRONTAGE ROADS HAVE A LARGE DISTANCE BETWEEN DRIVEWAYS, BACKAGE ROADS ARE USUALLY MUNICIPAL SO THE DISTANCES BETWEEN DRIVEWAYS CAN BE SMALLER.

>> THANK YOU, THE OTHER QUESTION I HAVE HAS TO DO WITH THE LAKE VIEW BUSINESS AND THE ENTER SECTIONS OF THE LIBERTY GROVE AND THE TRAFFIC SIGNALS THERE. AND THEY'RE NOT, OF COURSE, IN THE TIER TWO PROJECTS HERE. WE HAVE A COUPLE OF OTHER SIGNALS LISTED THERE. WHAT IS TWO INTERSECTIONS. S AT THOSE -

>> I SEE HICK COX AND MERIT, I DON'T THINK ANYTHING ABOUT

SIGNALS. >> MAYOR MARGOLIS: THEY'RE HERE

IN TIER TWO. OH, YOU'RE RIGHT? >> WAIT, WHICH ONES?

>> THE PGBT. >> OKAY. THE PGBT, WHEN I SPOKE WITH DECKS DOT ABOUT THOSE, THEY SAID THAT WE DO HAVE TO COME UP WITH THE MONEY FOR THEM, BUT, THEN, WE GET REIMBURSED, THEY ARE A TXDOT RESPONSIBILITY. SO, WE HAVE TO

[01:15:02]

WARRANTY THEM, AND WE HAVE TOLL BUILD THEM AND THEN THEY WILL REIMBURSE US AND OF COURSE, AFTERWARDS, WE MAINTAIN THEM.

>> OH, BOY. OKAY. THANK YOU. >> AND, I NOTICE IN THE CREATION OF THE TIRZ BOARD SOMEHOW YOU'VE PICKED COUNCIL PLACE ONE AS THE CHAIR. WHAT WAS THE THINKING BEHIND THAT?

>> . [LAUGHTER]

>> MAYOR MARGOLIS: WE JUST KIND OF, IT'S THE DICE YOU GAVE ME, IT WAS KIND OF LIKE, ROLL THE DICE, AND IT LANDED ON ONE.

>> I'M OKAY BECAUSE IT SAYS THAT I CAN COMPEL SOMEONE ELSE

TO DO THE WORK, OKAY. >> THANK YOU.

>> MAYOR MARGOLIS: PASS IT ONTO JEFF, THEN.

>> COUNCIL MEMBER GRUBISICH? >> THIS IS, THANK YOU, LIBBY FOR THAT. I KNOW THAT WE HAD TO LIST OUT OTHER POSSIBLE DEALS, BUT, THE ADDITIONAL 40% ON THE OR SIDE THAT'S NOT JACKSON SHAW WILL BE DRIVEN BY FUTURE DEVELOPMENT.

>> RIGHT. >> AND SO, I THINK FOR THE PUBLIC TO REALIZE IT'S NOT $136 MILLION BEING INTO THE BUDGET NEXT YEAR, THAT IS ALL DRIVEN BY FUTURE DEVELOPMENTS HAPPENING AND THOSE FUTURE DEVELOPMENTS WILL HAVE OTHER NEEDS TOO. SO, THIS IS A REALLY GREAT LIST, THERE'S GOING TO BE OTHER INFRASTRUCTURE NEEDS, WATER, SEWER NEEDS AND THINGS LIKE THAT, TO BE ABLE TO MAKE THESE DEVELOPMENTS HAPPEN. IT LOOKS GOOD THAT WE MAY BE ABLE TO FUND THE CONNECTER, AND THE REALITY IS THERE'S PROBABLY NOT GOING TO BE ENOUGH MONEY THERE WHEN THIS PLAYS OUT, BECAUSE THERE'S GOING TO BE ADDITIONAL MONEY NEEDED BY THE TIME THIS ALL HAPPENS. I JUST WANTED TO LET THAT AND PUT THAT OUT THERE. AM I READING THAT CORRECTLY?

>> YES. >> SO, JUST FOR THE PUBLIC'S EARS TO BE ABLE TO UNDERSTAND THAT PIECE OF IT. BUT, FULL SUPPORT OF THIS. FOR SURE, AND THANK YOU FOR ALL OF THE HARD

WORK. >> THANK YOU, COUNCIL, ANY

[8C. Consider approval of an ordinance to establish a Tax Increment Reinvestment Zone (TIRZ) in the area known as the North Shore District, to be named “Reinvestment Zone Number 4, City of Rowlett, Texas”; create and appoint members to a Board of Directors for the Zone; establish a Tax Increment Fund (TIRZ Fund) for the Zone; provide a date for the creation and termination of the Zone; and provide an effective date.]

OTHER QUESTIONS OR COMMENTS? >> ALL RIGHT. WE'LL MOVE ON TO THE NEXT ITEM, 8 C WHICH IS CONSIDER APPROVAL OF AN ORDINANCE TO ESTABLISH A TIRZ IN THE AREA KNOWN AS THE NORTH CAP SHORE DISTRICT TO BE NAMED REINVESTMENT ZONE NUMBER 4, CITY OF ROWLETT, TEXAS, CREATE AND APPOINT MEMBERS TO A BOARD OF DIRECTORS FOR THE ZONE, ESTABLISH A TAX INCREMENT TIRZ FOR THE ZONE. PROVIDE A DATE FOR THE CREATION OF TERMINATION

OF THE ZONE. >> I MOVE TO APPROVE THE ORDINANCE TO ESTABLISH A TAX INCREMENT REFINANCE KNOWN IN THE AREA KNOWN AS THE NORTH SHORE DISTRICT TO BE NAMED REINVESTMENT ZONE NUMBER 4 AND CREATE AND APPOINT MEMBERS TO THE BOARD OF DIRECTORS FOR THE ZONE, ESTABLISH THE PROVIDE AN DATE OR THE CREATION OF THE TERMINATION OF THE ZONE AND

PROVIDE AN EFFECTIVE DATE. >> I SECOND THAT MOTION.

>> MAYOR MARGOLIS: WE HAVE A MOTION BY COUNCIL MEMBER GRUBISICH AND A SECOND BY COUNCILMAN BRITTON, IS THERE ANY DISCUSSION BEFORE I CALL THE VOTE?

>> DEPUTY MAYOR PRO TEM SHINDER?

>> YES, I WANT TO SAY FIRST, THAT I'M NOT OPPOSED TO THE CONCEPT OF A TIRZ IN GENERAL, I THINK IT CAN BE A VALUABLE TOOL FOR ATTRACTING THE RIGHT DEVELOPMENTS AND GETTING MUCH NEEDED INFRASTRUCTURE BUILT. AND, I DO THINK THAT WE HAVE TO BE CAUTIOUS ABOUT WHERE AND HOW WE CREATE THEM. A TIRZ IS LIKE A FACEBOOK RELATIONSHIP, IT'S COMPLICATED. BUT, IT TAKES TAX REVENUE GENERATED IN A PARTICULAR AREA AND REINVESTS IT IN THAT AREA. THAT MONEY DOESN'T GO INTO THE GENERAL FUND TO BENEFIT THE CITY AS A WHOLE THE WAY THE REST OF PROPERTY TAXES THAT WE PAY DO FOR THE DURATION OF THE TIRZ, SO, THE TIRZ LOCKS IN THAT AMOUNT OF THE TAXES THAT THE CITY GET FROM THAT TIRZ AREA, NO MATTER HOW MUCH THE PROPERTY VALUE OF THAT AREA GOES UP. SO, THIS TIRZ, YOU KNOW, THE HISTORY THERE. I WAS OPPOSED TO THE REZONING FOR THIS DEVELOPMENT. I VOTED AGAINST IT AS A MEMBER OF PLANNING AND ZONING, AND I WON'T GO INTO ALL OF MY REASONS FOR THAT, BECAUSE THAT'S ALL WATER UNDER THE BRIDGE. BUT, THAT BODY'S RECOMMENDATION WAS OVERRIDDEN BY THE PREVIOUS CITY COUNCIL AS WAS THEIR PURVIEW. I WAS OPPOSED TO THE MOU, THE INCENTIVE AGREEMENT WITH JACKSON SHAW AND VOTED AGAINST IT AS A MEMBER OF THIS COUNCIL AND I WAS OUTVOTED. AND THIS TIRZ IS PART OF THAT AGREEMENT. I WILL BE VOTING AGAINST IT AGAIN TONIGHT, I'M CERTAIN I'LL BE OUTVOTED

[01:20:02]

AGAIN AND THAT'S OKAY. I'M GLAD THAT I SIT ON A COUNCIL THAT DOESN'T VOTE IN LOCKED STEP WITH MEMBERS WHO REPRESENT A D DIVERSITY OF OPINIONS AND WHO CAN AGREE TO DISAGREE IN AN

AGREEABLE WAY. >> MAYOR MARGOLIS: THANK YOU FOR THE COMMENTS. COUNCIL MEMBER GRUBISICH?

>> NO. >> MAYOR MARGOLIS: OH, MAYOR

PRO TEM WINGET? >> THANK YOU, MAYOR, THANK YOU FOR YOUR COMMENTS MAYOR PRO TEM SHINDER, I APPRECIATE THAT. I MUST SAY, HOWEVER, THIS IS THE CULMINATION OF THE WORK THAT WE'VE DONE OVER THE PAST SEVERAL MONTHS. WHILE LIKE YOU, I MIGHT NOT HAVE APPROVED THIS DEVELOPMENT IF I HAD WITHIN ON COUNCIL AT THE TIME, THE FACT OF THE MATTER IS THAT IT WAS APPROVED FOR REZONING AND NOW WE SIT IN THE POSITION WHERE WE HAVE TO MAKE THIS THE BEST DEVELOPMENT THAT WE CAN. AND I MADE A PRETTY EMPASSIONENED SET OF COMMENTS AT THE DISCUSSION WHERE WE APPROVED THE MOU AND SOME THOSE COMMENTS WERE SURROUNDING THE SAME THING. MAKING THIS DEVELOPMENT THE BEST IS THAT WE ENGAGE THE DEVELOPER. I HAVE A REAL FEAR AND CONCERN THAT REFUSING TO ENGAGE THIS DEVELOPER ON THE GROUNDS OF NOT LIKING THE DEVELOPMENT IN PARTICULAR WOULD SEND A MESSAGE TO NOT ONLY THIS DEVELOPER BUT ALL OTHER POTENTIAL DEVELOPMENT COMPANIES COMPANIES THAT ENGAGE OUR CITY THAT WE'RE NOT WILL TO GO WORK WITH THEM AND THAT'S A DANGEROUS PRECEDENT TO SET ESPECIALLY WITH THE AMOUNT OF LAND THAT WE ARE HOPING TO ADD TO OUR TAX ROLLS. I WOULD AGAIN, PLEAD WITH MY COUNCIL MEMBERS TO PLEASE CONSIDER VOTING YES TO THIS ITEM AND CONSIDER APPROVING THIS TIRZ AGREEMENT. I BELIEVE THIS IS A STEP IN THE RIGHT DIRECTION ARE FOR OUR COMMUNITY AND IT WILL MAKE A HUGE DIFFERENCE IN THE FUTURE FOR THE CITY OF ROWLETT.

>> MAYOR MARGOLIS: COUNCIL MEMBER GALUARDI.

>> SO, I THINK IT'S IMPORTANT TO MAKE SURE THAT EVERYONE WATCHING UNDERSTANDS THAT WHAT WE'RE TALKING ABOUT HERE IS CREATING AN INCENTIVE CAPABILITY, NOT JUST FOR THE LAKE VIEW BUSINESS DISTRICT BUT FOR THE BALANCE OF THE ACREAGE OF THE TIRZ. THE LAKE VIEW BUSINESS DISTRICT ZONES WHAT WAS CHANGED AND THAT IS IRREVERSIBLE. THE ZONING GOES WITH THE PROPERTY AT THIS TIME, IF WE DO NOT SUPPORT THE EXISTING DEVELOPER AND THAT DEVELOPER MOVES ON, THAT ZONING STILL STAYS WITH THE PROPERTY AND SOMEONE ELSE CAN COME IN AND DO SOMETHING ELSE THAT MEETSES THE ZONING WHICH IS ESTABLISHED FOR THAT PROPERTY. AS COUNCIL MEMBER WINGET SAID, I THINK OUR BEST OPPORTUNITY IS TO MAKE SOME LEMONADE OUT OF WHAT SOME MIGHT CONSIDER THE LEMONS. I THINK WE HAVE AN OPPORTUNITY TO HAVE THIS DISTRICT WITH THE INCENTIVE THAT WE'RE OFFERING TO THE CURRENT AND FUTURE DEVELOPERS. I HAVE STILL SOME CONCERNS THAT I THINK THAT WE COULD WORK THROUGH WITH THE DEVELOPER ABOUT WHAT CAN HAPPEN IN THAT AREA REGARDING TRAFFIC, HENCE MY CONCERN ABOUT TRAFFIC LIGHTS. AND WE HAVE TOLL MAKE SURE THAT AS WE GO THROUGH THE PROCESS THAT WE MAKE SURE THAT THE DEVELOPER ADHERES TO THE TENANTS THAT WE AGREED TO IN THE DEVELOPER AGREEMENT. I DO INTEND TO SUPPORT THIS. AND I LOOK FORWARD TO SEEING DEVELOPMENT BEFORE I PASS FROM THIS CITY. ON THE WEST SIDE OF PRESIDENT GEORGE BUSH TURNPIKE SO, I WILL SUPPORT THIS TIRZ.

>> MAYOR MARGOLIS: ANY OTHER COMMENTS? I'LL DEFER TO THE COMMENTS I MADE ON SEPTEMBER 20TH, 2022, WHEN WE APPROVED THE MOU. I APPRECIATE MY COLLEAGUES ON COUNCIL FOR SHARING THEIR THOUGHTS ON THIS. ALL RIGHT, AGAIN, A MOTION WAS MADE BY COUNCIL MEMBER GRUBISICH, A SECOND MADE BY COUNCIL MEMBER BRITTON, AND I'LL NOW CALL THE VOTE. AND THAT

ITEM PASSES 6-1. >>> WE WILL NOW MOVE ONTO ITEM

[8D. Consider action to approve an ordinance adopting changes to the Bayside Public Improvement District (PID) Service and Assessment Plan including the annual update to the Assessment Roll and levy of assessments on property in the PID pursuant to the Service and Assessment Plan for the Bayside PID – South Improvement Area.]

8D: WHICH IS TO CONSIDER ACTION TO APPROVE AN ORDINANCE ADOPTING CHANGES TO THE BAYSIDE PUBLIC IMPROVEMENT DISTRICT PID SERVICE AND ASSESSMENT PLAN INCLUDING THE ANNUAL UPDATE TO THE ASSESSMENT ROLL AND THE LEVEE OF ASSESSMENTS ON PROPERTY IN THE PID PURSUANT TO THE SERVICE AND ASSESSMENT PLAN FOR THE BAYSIDE PID IMPROVEMENT AREA.

[01:25:06]

>> AND THE FISCAL YEAR 2023 ASSESSMENT ROLL FOR THE SOUTH IMPROVEMENT AREA. ANNUAL UPDATES ARE REQUIRED BY THE PID ACT UNDER CHAPTER 372 OF THE TEXAS LOCAL GOVERNMENT CODE.

AND THEY ALSO REAFFIRM THE CITY'S VISION OF THE DISTRICT PLAN. AUTHORIZED IMPROVEMENTS, BUDGET, ASSESSMENT METHODOLOGY, PARCEL STATUS, PRE-PAYMENTS FOR ASSESSMENT AND ANNUAL INSTALLMENTS TO BE COLLECTED FOR PID BONDS AND OBLIGATIONS. THIS ORDINANCE PROVIDES FOR BILLING OF THE ASSESSMENT EACH YEAR. AT THIS TIME, I WOULD LIKE TO WELCOME OUR PID ADMINISTRATOR TO

PRESENT THIS UPDATE. >> GOOD EVENING, MAYOR AND COUNCIL, I'M YOUR TIRZ AND PID ADMINISTRATOR. THE TEXAS LOCAL GOVERNMENT CHAPTER 372 REQUIRE AS PID TO CONDUCT ON ANNUAL UPDATE OF THE SERVICES AND ASSESSMENT PLAN. AND THERE WERE CERTAIN ASPECTS OF THAT PLAN THAT WAS APPROVED IN 2013 TO LEVEE ASSESSMENT ON THE BAYSIDE PUBLIC IMPROVEMENT DISTRICT.

SO, PART OF THAT PLAN ARE REQUIRED TO BE UPDATED EACH YEAR. AND MOST IMPORTANTLY HAVE AN OPPORTUNITY TO REVISIT THE BUDGET WHICH WILL BE BILLED TO THE PROPERTY OWNERS EACH YEAR.

AS PART OF THAT ONGOING PROCESS THIS IS THE 5TH ANNUAL PROCESS DONE FOR THIS PARTICULAR AREA. AND THERE ARE 7 PARTS THAT WE UPDATE ON AN ANNUAL SERVICE PLAN UPDATE. I DON'T KNOW IF WE COULD MOVE FORWARD WITH THE PRESENTATION. THE FIRST PART THAT IS REQUIRED TO BE UPDATED IS THE SERVICE PLAN SECTION WHICH IS THE BUDGET FOR THE AUTHORIZED IMPROVEMENT THE. AS YOU COULD SEE IN THE SCHEDULE THAT IS PRESENTED BEFORE YOU, THE OVERALL BUDGET FOR THE DISTRICT WAS $49,435,475, THAT BUDGET STAYED THE SAME LAST YEAR AND THIS YEAR. OF THAT AMOUNT 71% HAS BEEN SPENT OF THE OVERALL BUDGET AND THE BALANCE REMAINING TO COMPLETE THE SETS OF IMPROVEMENTS IDENTIFIED IS $14 MILLION $15,680. OF THAT $14 MILLION REMAINING TO BE SPENT. $12 MILLION IS REMAINING FOR THE WATER FEATURES AND THE LAGOON AREA. AND THE BALANCE ARE ADDITIONAL ITEMS WHICH ARE LANDSCAPING AND SEA WALL, TXDOT BRIDGE ENHANCEMENT. THE OVERALL BUDGET IS RELATIVERY THE SAME BETWEEN LAST YEAR AND THIS YEAR.

THE NEXT AREA TO BE UPDATED IS THE DEVELOPMENT PLAN. THE OVERALL DEVELOPMENT PLAN AND AGAIN, AS YOU COULD SEE IN THE SCHEDULE HERE, THE OVERALL DEVELOPMENT PLAN PRETTY MUCH STAYED THE SAME BETWEEN LAST YEAR AND THIS YEAR WITH THE EXCEPTION OF ONE BASICALLY CHANGE. WHAT'S KNOWN AS PARCEL EIGHT IS ORIGINALLY EAR-MARKED FOR 58 TOWN HOMES. NOW, THOSE 58 TOWN HOMES ARE BEING REPLACED WITH 377 MULTIFAMILY UNITS.

THAT'S THE ONLY CHANGE FROM LAST YEAR. THE DEVELOPMENT WERE CURRENT ANNUAL SERVICE PLAN UPDATE. AND THAT CHANGE IS PROJECTED TO BRING IN APPROXIMATELY $15.95 MILLION ADDITIONAL TAXABLE VALUE BECAUSE OF THE CHANGE FROM TOWN HOME TOSS MULTIFAMILY UNITS, IT IS PROJECTED THAT IT WILL BE $15.95 MILLION VALUE TO THE CITY. THE OUTSTANDING INDEBTEDNESS OF THE DISTRICT. SO, WHEN THE ASSESSMENTS WERE LEVEED BACK IN 2017, THE OVERALL INDEBTEDNESS WAS $36,035,000, AND OF THAT AMOUNT THERE'S THE AMOUNT OF THE BIGGEST DIFFERENCE WHICH WAS ORIGINALLY OUTSTANDING AND NOW IS A PRE-PAYMENT WHICH WAS UNDER TAKEN BY ONE OF THE MULTIFAMILY DEVELOPERS, THEY PREPAID 2,000,073 IN OUTSTANDING ASSESSMENT WHICH WAS THE DECREASE IN THAT OUTSTANDING BALANCE. THE FOURTH ITEM WHICH IS INCLUDED IN THAT ANNUAL UPDATE IS THE OVERALL BUDGET FOR THE YEAR. THIS PART SHOWS THE AMOUNT THAT WE NEED TO DIRECT FROM THE PROPERTY OWNERS WITHIN THE PID IN ORDER TO MEET THE PID

[01:30:06]

OBLIGATIONS FOR THE YEAR. THE OVERALL BUDGET LAST YEAR WAS $3,100,000, AND THE BUDGET THIS YEAR IS $29,281,683. THAT'S ENTIRELY TIED TO THE BONDS THAT WE RETIRED WITH THE $2,000,073 ASSESSMENTS PAID BY ONE OF THE DEVELOPERS. UNLESS THERE ARE ADDITIONAL PREPAYMENTS WE EXPECT THE REMAINDER OF THE YEAR TO BE THAT $2.9 MILLION. THE OTHER PARTS OF THE UPDATE SUBMITTED BEFORE YOU IS ONE, ABOUT THE METHODOLOGIES IN THE PROPERTIES PARTICULARLY IN THAT IMPROVEMENT AREA WILL CONTINUE TO BE ASSESSED IN THE SAME MANNER THAT WAS ORIGINALLY CONTEMPLATED.

THERE WERE ALSO NO NEW ACCOUNTS CREATED ACCORDING TO DCAD AND RCAD. SO, THERE HAVE BEEN A LOT OF MOVEMENT SINCE JANUARY 1ST, TO CREATE TO SUBDIVIDE AND CREATE NEW PARCELS. WE EXPECT MORE ACTIVITY BETWEEN THAT SUBDIVISION AND OWNERSHIP TRANSFER BETWEEN THIS YEAR AND LAST YEAR, BUT, LAST YEAR THERE WERE NOT MANY CHANGES. THE LAST ITEM THAT WE HAVE IN THERE IS THE PREPAYMENT THAT I TALKED ABOUT EARLIER WHERE ONE OF THE MULTIFAMILY DEVELOPERS PAID OFF THE ASSESSMENT IN FULL FOR 393 MULTIFAMILY UNITS. THAT HAS BEEN PAID OFF IN FULL AND THE BONDS HAVE BEEN RETIRED WITH THAT AMOUNT. SO, THE BUDGET REDUCTION THAT WE SAW EARLIER WAS THE RESULT OF THAT PRE-PAYMENT, SO WE'VE INCORPORATED THAT AS WELL.