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>> ALL RIGHTY, FOLKS, IT IS 4:06, WE DO HAVE A QUORUM. I'M GOING TO LOOK, APPROVE
[2. Approve minutes from the following meeting(s): January 6, 2026. ]
MINUTES FROM JANUARY 6 2026, THESE MINUTES PROVIDED IN YOUR PACKET.ANY CHANGES OR QUESTIONS THAT NEED TO BE RAISED? IF NOT, I WILL ENTERTAIN A MOTION TO APPROVE THE MINUTES. GIBBS.
>> APPROVE MINUTES FROM JANUARY 6. >> SECOND BY CONGRESSMAN
BOWERS. >> NEXT THE PRESENTATION. I'M SORRY.
DO YOU HAVE TO DO THE VOTE? THERE WE GO, IT PASSES 7-0. ALL RIGHT. NEXT WE'LL HAVE A
[3. Presentation and discussion regarding TIRZ #2 adopted financial plan. ]
PRESENTATION ON TIRZ 2, ADOPTED PLAN AND TURN IT OVER.>> COULD YOU PULL UP THE POWERPOINT FOR THE SECOND ITEM AND TALK ABOUT IT BRIEFLY, COLLAPSE THEM BOTH INTO ONE DECK? OKAY.
ALL RIGHT, GOOD AFTERNOON, BOARD. PRESENTED ON THE SCREEN IS THE PROJECT LIST FROM THE TIRZ NUMBER TWO OVERVIEW FOR BAYSIDE NORTH AND BAYSIDE SOUTH.
WE'LL GET INTO THIS A LITTLE MORE IN THE SECTION THAT FOLLOWS WHEN WE TALK ABOUT WHAT THE BUDGET LOOKS LIKE FOR FUNDING THESE TYPES OF PROJECTS. BUT EFFECTIVELY PFP CONTEMPLATES VARIOUS STREET IMPROVEMENT, WASTE WATER, WATER, ON-SITE ROADS, PARKS, ART AND ADIN M
ADMINISTRATIVE EXPENSE AND FINANCE AND COST. >> INTERRUPT FOR A SECOND, IF GIVEN FINANCIAL PLAN FOR ALL TIRZ TALKING ABOUT TODAY, SENT IN SEPARATE DOCUMENT, QUICK INTRODUCTION TO WHAT THE DOCUMENTS DO. THIS IS WHAT THIS MONEY COULD BE USED FOR WITH INITIAL INVESTMENT WHEN THEY WERE FORMED. THESE NUMBERS ARE BASED ON FAST PLAN PUT IN PLACE WHEN TIRZ WAS FORMED, IT DOES THE NOT MEAN IT WILL ALL BE SPENT MOST LIKELIHOOD NOT BE SPENT THIS WAY. IT CREATES LIMITATION HOW YOU CAN SPEND FUNDS THIS IS HOW IT COULD BE SPENT AND WE'LL TALK ABOUT THE WAY IT IS CURRENTLY BEING SPENT AND ON THE RESOURCES AVAILABLE TO MEET CURRENT OBLIGATION, MAKE SURE YOU UNDERSTAND THE FINANCIAL PLAN AND BUDGET AND WHERE WE ARE IN THIS PROCESS.
AS TIRZ BOARD, YOU CAN AMEND THE FINANCIAL PLAN, WE HAVE DONE THAT IN THE PAST.
WE DON'T HAVE THAT ON THE AGENDA TODAY, IF THERE IS INTEREST IN AMENDING FINANCIAL PLANS IT IS SOMETHING TO BRING UP AND PUT ON FU FUTURE TIRZ BOARD FOR
CONSIDERATION. >> SO FOR TIRZ 2, SOMETHING WE NEED TO ANSWER IT IS BROKEN UP INTO TWO AREAS BAYSIDE NORTH AND SOUTH, SAPPHIRE BAY SOUTH PORTION.
BAYSIDE NOW NORTH, THERE IS A DEVELOPER THAT HAS DEVELOPER LOAN IN PLACE THROUGH TIRZ AGREEMENT, SUBMITTED COST AND ARE BEING REIMBURSED FOR COST THROUGH BAYSIDE NORTH PORTION OF TIRZ AND BAYSIDE SOUTH TIRZ FURTHER IN BUDGET DEVELOPER AGREEMENT ASSOCIATED WITH THOSE
PROJECTS WAS TERMINATED AND THE FUND BALANCE IS BUILDING. >> IC MICHAEL, I HATE TO SAY
THIS, I CANNOT HEAR YOU. >> OH, I'M SORRY. OKAY.
WHERE DID YOU LOSE ME? OKAY, BRING IT ALL THE WAY BACK, AS ELUDED TO PFP SET OUT A LIST OF PROJECTS THAT COULD BE DEVELOPED BASED ON PLAN ESTABLISHED IN 2015.
THE DEVELOPMENT OF PROJECTS ARE CONTINGENT ON GROWTH HAPPENING IN TIRZ, INCREASE OF VALUE
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WITHIN TIRZ AFTER TIRZ IS ESTABLISHED CREATES VALUE, THAT VALUE WHEN CAPTURED IN TAX RATE IS SET ASIDE IN TIRZ FUND AND CAN BE SPENT ON THOSE PROJECTS. TIRZ 2 HAS TWO COMPONENTSES NORTH OPPCOMPONENT AND THE DEVELOPER MOVED FORWARD WITH DIFFERENT PROJECTS AND HE'S BEING REPAID. SOUTH PORTION, THERE WAS AGREEMENT IN PLACE, AGREEMENT TERMINATED EARLIER THIS YEAR AND PAT THIS POINT NO ACTIVITY HAD BEG YOUR PARDON DONE WITH THETIRZ MONEY, SO THAT BALANCE IS BUILDING. >> MICHAEL, YOU JUST SAID THAT BACKWARD, NORTH BAYSIDE VERSION HAS REIMBURSEMENT AGREEMENT AND THE SOUTH, THE SAPPHIRE BAY ONE
THERE IS NO AGREEMENT IN PLACE. >> YES. NORTH IS DEVELOPER LOAN, BAYSIDE
SOUTH NO TIRZ AGREEMENT IN PLACE. >> OKAY.
OKAY. RIGHT HERE WE HAVE OVERVIEW OF BOUNDARY FOR NORTH IMPROVEMENT AREA AND THE SOUTH AREA AND I THINK AFTER THIS SLIDE WE GET INTO THE BUDGET SECTION, WE CAN
HOLD OFF FOR NEXT SECTION OF THE BOARD MEETING. >> QUESTIONS ABOUT CURRENT FUNDING PLAN OR ANYTHING ELSE ON THE BAYSIDE NORTH AND SOUTH BEFORE WE GET INTO THE BUDGET
PROPOSED FOR THE NEXT YEAR? >> LET'S TALK ABOUT THE BUDGET. >> DO WE NEED TO READ THAT INTO
THE RECORD? >> OKAY, WE HAD THE DISCUSSION OF THE PRESENTATION, ARE THERE
ANY QUESTIONS THAT YOU MAY HAVE? >> ONE. I THINK I MISSED IT, I HEARD YOU
ON IT, WAS ONE TERMINATED? ONE OF THE TIRZ? >> CORRECT.
>> ONE BEING PAID BACK? >> CLARIFY THAT, TIRZ HAS NOT BEEN TERMINATED, DEVELOPMENT AGREEMENT WITH THE DEVELOPER FOR THE SAPPHIRE BAY PORTION OF THIS HAS BEEN TERMINATED.
AT THAT TIME, THERE WAS NO REIMBURSEMENT AGREEMENT OR OTHER COST OR OBLIGATION OF THE TIRZ
OBLIGATED IN THAT AGREEMENT. >> OKAY. FOR THE NORTH SIDE, THAT ONE IS A DEVELOPER LOAN THAT IS BEING PAID BACK VIA THE TIRZ, ARE WE AHEAD OF SCHEDULE, ON SCHEDULE?
>> CONTINGENT ON THE GROWTH SO THE FASTER THE AREA GROWS, THE SOONER IT GETS PAID BACK.
IT IS A RISK SHIFTING TOOL SO INSTEAD OF PLACING BURDEN, SO IF LIKE I DON'T WANT TO GO TOO DEEP IN THE WEEDS. THEY, YOU GET OUT WHAT YOU PUT IN.
IF THEY INVEST, THERE IS GROWTH AND THEY GET PAID BACK. IF GROWTH HAPPENS MORE SLOWLY KNOW THAT ANTICIPATED, THEN THE RISK THEY DON'T GET PAID BACK. THEY HAVE SKIN IN THE GAME.
>> THANK YOU. >> ARE THERE ANY MORE QUE QUESTIONS, DISCUSSIONS?
>> SO GIVEN HOW MANY EMPTY LOTS THERE ARE IN THE NORTH IMPROVEMENT AREA, STILL SUBSTANTIAL OPPORTUNITY FOR THINGS TO ACCELERATE AND GO FASTER IF THE DEVELOPER BUILDS
OUT REMAINDER OF THE HOME SITES. >> I THINK THEY HAVE SUBMITTED ALL RIUMBURRSMENT FOR PUBLIC
INFRASTRUCTURE PART OF TIRZ THEY ARE GETTING REIMBURSED WITH. >> ON THE REVENUE SIDE STILL OPPORTUNITY TO INCREASE INCREMENT BUILDING MORE HOMES THAT ADD TAXABLE VALUE, RIGHT?
>> I WOULD NEED TO PHONE A FRIEND IN ECONOMIC DEVELOPMENT. >> ANSWER TO THAT QUESTION IS YES, YES, THEY HAVE, AGAIN, CONDO DEVELOPMENT ON THE SHOR THEY ARE IN PROCESS OF CONSTRUCTING AND COTTAGE HOMES AD ADJACENT TO THAT AND THE HOTEL PROJECT CURRENTLY UNDER CONSTRUCTION ADD TO TAX VALUE. WE HAVE 380 AGREEMENT WITH HOTEL, GIVING TAXES BACK THAT WILL NOT IMPAIR THE TIRZ AND BE COST TO GENERAL FUND.
>> ANY OTHER QUESTIONS? IF NOT, THEN WE'LL MOVE TO DISCUSSION AND CONSIDERATION TO
[4. Discussion and consideration to approve recommendation of TIRZ #2 Budget to City Council. ]
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APPROVE RECOMMENDATION OF TIRZ 2 BUDGET TO THE CITY COUNCIL. >> HOLD ON GET INTO THE BUDGET
FIRST, SIR. >> WE CAN GET IN THE BUDGET RIGHT NOW.
>> YEAH. >> BEING00. SO ON THE SLIDE PRESENTED HERE BAYSIDE NORTH COMPONENT OF THE TIRZ BUDGET, SO WE HAVE $1.4 MILLION ROUGHLY ESTIMATED OF REVENUE COMING IN. ON THE EXPENSE SIDE YOU SEE UNDER PURCHASE SERVICES ABOUT $1.39 MILLION GOING OUT AND 5000 TO GENERAL FUND FOR CITY COST OF MANAGING TIRZ AND 1.4 MILLION COMBINATION OF VERY, VERY MODEST AMOUNT TO MINICAP FOR TIRZ ADMINISTRATIVE SERVICES WITH VAST MAJORITY GOING TO BAYSIDE NORTH DEVELOPER FOR REPAYMENT OF THEIR LOAN.
AS OF MID-YEAR, REMAINING LOAN BALANCE ABOUT 7.3 MILLION. ANY QUESTIONS ON THE BUDGET FOR
NORTH IMPROVEMENT AREA? >> SO JUST BASED ON THAT 1.4 MILLION ABOUT FIVE YEARS WORTH OF REPAYMENT, IF TAXABLE VALUE GROW THAT WOULD ACCELERATE, FIVE YEARS WORTH OF PAYMENT ROUGHLY REMAINING REIMBURSABLE TO THE DEVELOPER AND THAT POINT NO MORE OBLIGATION AND THE NORTH TIRZ IS FREE AND CLEAR TO BE USED FOR ECONOMIC DEVELOPMENT OR ANY OTHER PLANNED EXPENSES?
>> CORRECT. I THINK SOME REVIEW OF THE TIRZ AGREEMENT NEEDED TO MAKE SURE IT DOES NOT CONTEMPLATE THE TIRZ THAT INCREMENT THERE FREED UP FOR PROJECTS COUNCIL CHOOSES OR
ANOTHER AGREEMENT. >> THIS WAS A 20-YEAR TIRZ, IS THAT CORRECT?
>> I'VE GOT IT RIGHT HERE, 20 YEARS, YES, SIR. >> OKAY, SORRY.
SHOULD HAVE ASKED WHEN I WERE ON THAT SLIDE. THANK YOU.
>> ANY OTHER QUESTIONS, COMMENTS RELATED TO TIRZ 2 BUDGET?
IF NOT, I WILL ENTERTAIN A MOTION. >> SAME ITEM JUST --
>> OKAY, SORRY ABOUT THAT. >> THIS SLIDE SOUTH PORTION OF THE TIRZ PRESENTED, BEGINNING BALANCE PROJECTED FISCAL 27 IS $1.9 MILLION, REVENUE 1.2 MILLION COMING IN UNDER PURCHASE SERVICES AND MINI-CAP FEES, TIRZ ADMINISTRATOR ESTIMATED, AS WELL AS SMALL PORTION OF 5000 FOR THE CITY FOR SERVICES. PROJECTED FUND BALANCE FOR FISCAL YEAR END IS 3.1 MILLION.
AS PREVIOUSLY DISCUSSED, BALANCE GOING UP, NO TIRZ AGREEMENT IN PLACE NOR HAS TIRZ BOARD
APPROVED PROJECT FOR MONEY TO BE SPENT ON. >> WITH THE TERMINATION OF THE MASTER DEVELOPMENT AGREEMENT AND ALL RELATED DEVELOPMENT AGREEMENT WITH SAPPHIRE BAY LAND
HOLDINGS THERE ARE NO OBLIGATIONS THAT THIS TIRZ HAS? >> CORRECT.
>> SO JUST TO BE CLEAR, NO MORE I GUESS WE'D CALL THEM FUNDS FROM TIRZ WILL BE GOING TO THAT
ENTITY? >> CORRECT. AND THERE WERE NO OBLIGATIONS PRIOR TO THE DEVELOPMENT AGREEMENT BEING TERMINATED FOR TIRZ, IMPROVEMENT DOING OUT THERE HAD BEEN SUPPORTED BY A PID, AND THAT IS WHERE MOST OF THE WORK BEEN DONE OUT THERE HAS BEEN FUNDED THROUGH THE PID PROCESS. SO PUBLIC IMPROVEMENT DISTRICT FUNDED BY BONDHOLDERS AND THEY HAVE LIEN AND THAT IS PROCESS WE ARE MOVING FORWARD THROUGH NOW, NEVER BEEN REIMBURSEMENT DEVELOPMENT AGREEMENT ASSOCIATED WITH THE TIRZ.
>> SO WE ANTICIPATE TIRZ BALANCE TO CONTINUE TO RISE BASED ON THE DEPARTMENTS THAT ARE THERE AND HOMES THAT ARE THERE, ALL THOSE ADDING TO TIRZ AND CONTINUE TO GROW?
>> IF YOU LOOK AT ACTUAL LAST TWO YEARS JUMP FROM 541 TO 826 AND PROJECTED GOING UP TO 1.2, SEE THAT GROW AND OF COURSE RESERVE UNLESS THERE IS PROJECT IDENTIFIED OR FUTURE FUNDING AGREEMENT THAT FUNDING WILL CONTINUE TO INCREASE. THERE IS OPPORTUNITY OF COURSE FOR COUNCIL TO UTILIZE FUNDS IN WAY CONSISTENT WITH THE PLAN OR AMEND THE PLAN.
ONE SIGNIFICANT OBLIGATION IS PART OF THIS AGREEMENT WATER AND SEWER IMPROVEMENT TO GET
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SUFFICIENT WATER OUT THERE. FOR DEVELOPMENT RIGHT NOW, WE HAVE SUFFICIENT WATER AND MORE THAN ENOUGH WATER CURRENTLY BUT TO WITH PLAN BUILD-OUT WAY IT HAS BEEN TALKED ABOUT, WE NEED SIGNIFICANT ADDITIONAL IMPROVEMENT IN WATER SYSTEM UPSTREAM TO GET WATER TO THISLOCATION. SO -- >> THIS IS DALROCK LINE FROM
DALROCK -- >> DALROCK LINE AND MERIT ROAD, AS WELL.
>> USING THESE FUNDS FOR UPSTREAM FOR THE WATER IS WHAT THE PLAN IS, THAT WOULD NOT BE
IF SAPPHIRE BAY; CORRECT? >> IMPROVEMENTS OCCUR NOT IN SAPPHIRE BAY, SUPPORT SERVICE TO
SAPPHIRE BAY, SO WOULD BE ALLOWED EXPENSE TO THE TIRZ. >> OKAY, THANKS.
ANY OTHER QUESTIONS OR COMMENTS? >> JUST A QUESTION, TOO, ABOUT WATER PIECE WASN'T THERE A DEAL THAT INCLUDED DALROCK PIECE OF WATER, THAT IS SEPARATE DEAL FROM BEFORE APPROVED?
>> THIS THE DEVELOPMENT COST-SHARING TERM WHERE THE DEVELOPER WAS SUPPOSED TO PAY ANYTHING ABOVE LIKE 13 MILLION, CITY WOULD PAY 13 MILLION AND DEVELOPER SUPPOSED TO PAY ANYTHING ON TOP OF THAT. THAT DEVELOPMENT AGREEMENT NO LONGER EXISTS.
>> IS OUR PART BACK TO REINTERPRET LATER OR STILL OBLIGATED TO WHO COMES IN
AFTERWARD? >> IF SOMEONE BUILD IT OUT THAT IMPROVEMENT WILL NEED TO OCCUR.
>> SO THOSE FUNDS ARE, OUT OF GENERAL FUND NOT ALLOCATED, THAT IS FUTURE --
>> THAT IS CORRECT. HAVE NOT ALLOCATED FUND, WE HAVE SPENT 13 MILLION, HAVE NOT TAKEN
ON OBLIGATION IN EXCESS OF THAT. >> THAT WOULD BE UTILITY FUND CAPITAL PROJECT WHICH COULD BE REIMBURSED BY TIRZ OR POTENTIALLY A DEVELOPER IF THEY WERE ON THE HOOK FOR THAT
GROWTH. >> JUST TO CLARIFY, WE HAVE NOTHING COMMITTED TO WHOEVER COMES IN AFTER THE FACT THAT THE DISCUSSION LATER TO HAVE THAT WE WOULD THAT 68 ACRES OR WHATEVER
HE'S GOT REINTERPRETED LATER. >> NOT WITH THAT PROPERTY AT THIS TIME.
ANYTHING BE DISCUSSION WITH FUTURE DEVELOPER OR CURRENT DEVELOPER IF THEY CAME BACK AND
WANTED TO DO A DIFFERENT TRANS ACTION WITH THE CITY. >> WE'D HAVE THAT DISCUSSION
LATER THEN? >> CORRECT. >> THAT'S IT.
>> ANY OTHER COMMENTS OR QUESTIONS? IF NOT, NOW I WILL ENTERTAIN A
MOTION TO APPROVE TIRZ 2 BUDGET. I SEE A MOTION BY MAYOR. >> MOTION TO APPROVE BUDGET
PRESENTED. >> SECOND BY GIBBS. >> IS SECOND.
POINT OF ORDER WAITING FOR COUNCIL MEMBER HOLSTON COMPUTER TO LOAD BACK UP, DON'T WANT HIM
TO MISS THE VOTE. >> BACK UP NOW. >> YEP.
>> IT IS NOT FLASHING. OKAY. >> NOW IT MAY BE.
THERE WE GO. OKAY. I SEE THAT PASSES 7-0.
ALL RIGHT, IT IS
* This transcript was compiled from uncorrected Closed Captioning.