[00:00:05] OKAY. SO TODAY IS MONDAY, JUNE 16TH. WE'LL NOW CALL THE CITY COUNCIL SPECIAL MEETING TO ORDER [1. CALL TO ORDER ] AT 5:20 P.M. ITEM NUMBER TWO, A ROLL CALL. WE DO HAVE A QUORUM OF COUNCIL. ITEM NUMBER THREE, OUR PUBLIC COMMENTS. DEPUTY CITY SECRETARY, DO WE HAVE ANY PUBLIC COMMENTS FOR ANY OF THE ITEMS ON [5. CLOSED EXECUTIVE SESSION] THE AGENDA? NO, SIR. MR. MAYOR, WE DO NOT. OKAY, SO I'D LIKE TO ASK MY COLLEAGUES IF THERE ARE NO OBJECTIONS, CAN THE CITY COUNCIL WILL NOT GO INTO EXECUTIVE SESSION PURSUANT TO SECTION 551.071 OF THE TEXAS GOVERNMENT CODE. WE NEED A VOTE OR. ALL RIGHT. SEEING NO OBJECTION, LET'S GO INTO CLOSED EXECUTIVE SESSION AT FIVE £0.20. TIME IS 6:13 P.M. CITY COUNCIL [6. RECONVENE] IS BACK INTO SPECIAL CITY COUNCIL SPECIAL MEETING. ITEM FOUR A IS DISCUSSION AND [(a) Receive a Presentation and Hold a Discussion - Update on proposed chan...] POSSIBLE ACTION TO RECEIVE A PRESENTATION AND HOLD DISCUSSION. UPDATE ON PROPOSED CHANGES TO CERTAIN ECONOMIC DEVELOPMENT INCENTIVE PROGRAMS. EAGLES. GOOD EVENING. THANK YOU. THIS IS STAFF'S CURRENT REALLY PROVISION OF THE ECONOMIC DEVELOPMENT ORDINANCE THAT YOU ALL ASKED US TO TAKE A LOOK AT LAST YEAR. THIS ORDINANCE HAS BEEN UTILIZED TO PROVIDE FUNDING IN THE TEXAS PARKWAY CORRIDOR, AS WELL AS SOME OTHER LOCATIONS IN THE CITY. BUT AS WE TALKED ABOUT LAST YEAR, THIS WAS A BRAND NEW PROGRAM. AND IS A VERY YOUNG PROGRAM. SO AS WE AND STAFF FACILITATED THIS PROGRAM, SEVERAL ISSUES WERE IDENTIFIED DURING THE PROCESS. I AM PRESENTING THIS AT THIS TIME JUST TO PROVIDE ASSISTANCE STAF, SPECIFICALLY JASON MANGUM AND ELIJAH WASHINGTON ARE IN THE BACK. SO WHERE THERE ARE SPECIFIC ECONOMIC DEVELOPMENT POLICY RELATED QUESTIONS, IN ADDITION TO, OF COURSE, THE CITY MANAGER TEAM MEMBERS WILL PROVIDE THAT THAT SUPPORT. BUT STAFF HAS BEEN WORKING ON THE ORDINANCE FOR THIS ITEM. SO AGAIN, THIS PROVIDES OR SPEAKS TO YOUR STRATEGIC GOALS OF CREATING A GREAT PLACE TO LIVE AND MAINTAINING A FINANCIALLY SOUND CITY GOVERNMENT. THE SUMMARY OF THE PROPOSED CHANGES INCLUDE AND SOME OF YOU HAVE HEARD THIS BEFORE. THIS HAS BEEN PRESENTED TO THE ECONOMIC DEVELOPMENT COMMITTEE AS WELL AS THE TEXAS PARKWAY COMMITTEE. BASED ON THE FEEDBACK THAT STAFF HAS GOTTEN, ITEMS HAVE BEEN REVISED AND ADDED TO THE PROPOSAL. BUT AGAIN, THE PRIMARY CHANGE HERE IS THAT THIS CREATES A MATRIX SYSTEM FOR RECOMMENDATIONS THAT WILL GO BEFORE COUNCIL. IT REMOVES LOCATION REQUIREMENTS, BUT ADDS POINTS FOR CERTAIN REDEVELOPMENT LOCATIONS IN THE CITY. IT DECREASES SALES TAX REQUIREMENTS FOR CERTAIN REDEVELOPMENT AREAS BECAUSE IN LOOKING AT THIS PROGRAM, STAFF IDENTIFIED THAT THERE IS A NEED NOT JUST FOR REDEVELOPMENT DOLLARS AND TO ENCOURAGE AND INCENTIVIZE REDEVELOPMENT, BUT THERE'S ALSO A NEED TO BRING IN KIND OF BIG RETAILERS AND BIG RESTAURANTS, AS WELL AS KIND OF HAVING A BALANCE BETWEEN THE BIG BUSINESSES AS WELL AS THE SMALL BUSINESSES. THERE ARE GENERAL REQUIREMENTS FOR ALL PROGRAMS, AS WELL AS COMBINING THE RESTAURANT, PATIO AND FACADE PROGRAM INTO A SINGLE PROGRAM, AS WELL AS BASICALLY ONLY FORWARDING APPLICATIONS ONTO YOU. ALL THAT MEET THE THRESHOLD CRITERIA. AND AGAIN, THIS IS JUST A RECOMMENDATION. THIS IS FOR DISCUSSION PURPOSES. SO AT THE END, IF YOU SEE SOMETHING THAT YOU DO NOT AGREE WITH THAT YOU DON'T THINK SHOULD BE CHANGED, THAT'S THE PURPOSE OF THIS DISCUSSION. I WILL ALSO STATE THAT IT IS 615. AND SO WE DO RECOGNIZE THAT WE WILL NOT GET THROUGH THIS DISCUSSION TODAY. BUT WE DID WANT TO KICK IT OFF FOR YOU ALL. THE NEXT SLIDE JUST DESCRIBES WHAT WE CURRENTLY HAVE UNDER THE CITY'S CURRENT ORDINANCE, WHICH IS A REDEVELOPMENT INCENTIVE POLICY. THE TEXAS PARKWAY CARTWRIGHT ROAD FACADE IMPROVEMENT PROGRAM, [00:05:03] TEXAS PARKWAY, CARTWRIGHT ROAD RESTAURANT INCENTIVE PROGRAM, AS WELL AS A RESTAURANT PATIO PROGRAM. THE PROPOSED CHANGE BASICALLY CREATES TWO DIFFERENT PROGRAMS, ONE FOR NEW DEVELOPMENT, THE OTHER ONE FOR REDEVELOPMENT. THERE IS A SALES TAX REIMBURSEMENT PROGRAM, AS WELL AS A RESTAURANT REIMBURSEMENT PROGRAM. THE FACADE REIMBURSEMENT PROGRAM AS A RESTAURANT REIMBURSEMENT PROGRAM. THE. THIS IS AN OVERVIEW OF THE UPDATED PROPOSED PROGRAMS. AS I MENTIONED, THEY'RE REALLY IN TWO BUCKETS NEW DEVELOPMENT AND REDEVELOPMENT OR NEW DEVELOPMENT. THE CITY. THE PROPOSAL IS FOR THE CITY TO HAVE A SALES TAX REIMBURSEMENT PROGRAM. THIS WOULD INCENTIVIZE HIGH VALUE BUSINESSES. SO BUSINESSES THAT BRING IN A MINIMUM OF $500,000 IN NEW TAXES, TAX REVENUE OR PROPERTY TAX VALUE, ACTUALLY TO THE CITY, THEY WOULD GET UP TO 100% OF SALES TAX OF THE CITY'S SHARE FOR FIVE YEARS. THE NEXT PROGRAM IS A NEW DEVELOPMENT RESTAURANT PROGRAM. SO THE GOAL HERE IS TO ATTRACT UPSCALE RESTAURANTS, DINE IN RESTAURANTS THAT WOULD LOCATE IN IN THE CITY. THEY WOULD GET UP TO $100,000 IN 70, WHICH WOULD BE UP TO 75% FOR FACADE IMPROVEMENTS OR SALES TAX FOR FIVE YEARS, AND PERMIT FAST TRACK FOR REDEVELOPMENT. THE CITY WOULD HAVE A FACADE PROGRAM THAT WOULD IMPROVE AND MODERNIZE AGING BUSINESS FACADES THAT WOULD BE UP TO $100,000, OR 25% OF ELIGIBLE COSTS. AND THAT IS A REIMBURSEMENT PROGRAM. WE WOULD ADD A REQUIREMENT THAT THE BUILDINGS BE AT LEAST 20 YEARS OLD BECAUSE, AGAIN, THIS IS A REDEVELOPMENT. THIS PORTION IS A REDEVELOPMENT PROGRAM. WE WANT TO MAKE WHAT OUR EXISTING STOCK AND COMMERCIAL STOCK LOOK BETTER THAN WHAT WE HAVE RIGHT NOW. THE NEXT ITEM IS THE REDEVELOPMENT, RESTAURANT REIMBURSEMENT. AND AGAIN WE WANT TO BRING DINE IN RESTAURANTS TO THE CITY. AND SO THIS WOULD REALLY BE FOR THE SMALLER DINE IN RESTAURANTS. AND IT WOULD BE FOR UP TO $100,000. THE GENERAL ELIGIBILITY REQUIREMENTS. WE WOULD CLARIFY THAT THESE PROGRAMS ARE ONLY FOR PROFIT BUSINESSES LOCATED ON TAXABLE PROPERTY. PART OF ECONOMIC DEVELOPMENT IS ATTRACTING NEW BUSINESS, BUT IT'S ALSO PART OF THAT IS ALSO GAINING AND GARNERING NEW REVENUE FOR THE CITY. SO THAT'S PART OF ECONOMIC DEVELOPMENT. SO WE WOULD WANT TO MAKE SURE IT'S FOR PROFIT BUSINESSES. THEY HAVE TO HAVE OPERATED IN MISSOURI CITY FOR AT LEAST SIX MONTHS. THERE ARE CERTAIN LIMITATIONS OR EXCEPTIONS TO THAT THAT STAFF IS PROPOSING. THEY INCLUDE IF THEY'RE GOING INTO LIKE A REDEVELOPMENT AREA THAT'S BEEN VACANT FOR A SIGNIFICANT AMOUNT OF TIME. WE DO WANT TO INCENTIVIZE BUSINESSES TO LOCATE IN THOSE AREAS, AND THEY HAVE TO MEET MINIMUM INVESTMENT DESIGN AND SALES TAX THRESHOLDS. THIS INCENTIVE, NONE OF THE INCENTIVES WOULD BE ALLOWED FOR GAS, VAPE, PAWN SHOPS, MASSAGE ESTABLISHMENT ESTABLISHMENTS AND A HOST OF OTHER PLACES, AND THEY COULD NOT HAVE OPEN CODE VIOLATIONS OR DELINQUENT TAXES. WE WOULD ALSO PROVIDE THAT ONCE A BUSINESS RECEIVES THIS PUBLIC SUBSIDY, THEY WOULD NOT BE ABLE TO GET ANOTHER ONE WITHIN A FIVE YEAR PERIOD. SO IF A PROPERTY IS OWNED BY A CERTAIN OWNER AND THEY GET A PUBLIC SUBSIDY FOR THEIR FACADE, THEY COULDN'T TWO YEARS LATER, THEN TRY TO GET A PUBLIC SUBSIDY FOR THEIR PARKING LOT UNDER A DIFFERENT BRIGADE. THE NEXT RECOMMENDATION WOULD BE TO PROVIDE THAT THEY FOLLOW PUBLIC BIDDING. THIS IS THESE ARE PUBLIC DOLLARS. SO IF THEY RECEIVE OVER $100,000, THEY WOULD HAVE TO FOLLOW THE PUBLIC BIDDING PROCESS. AND WE DO REQUIRE THIS ALREADY FOR FOLKS WHO GET TOURIST DOLLARS AND THINGS LIKE THAT. THIS IS THE PROPOSED MATRIX FOR THE NEW DEVELOPMENT PROJECTS. THE FIRST ITEM IS THAT THEY WOULD PROVIDE THE CITY WOULD PROVIDE A MAXIMUM OF 25 POINTS FOR THEIR TAX IMPACT. SO BASED ON THE LEVEL OF TAX IMPACT, IF IT'S IF THEY ONLY, YOU KNOW, HAVE A TAX IMPACT OF $5,000, THE CITY WOULD BASICALLY ONLY PROVIDE ABOUT FIVE POINTS. SO THIS WOULD BE A TIERED POINT SYSTEM BASED ON THE IMPACT TO THE CITY. BECAUSE AGAIN, THE PURPOSE OF THESE PROGRAMS IS TO MAKE SURE THAT THE PUBLIC IS GETTING SOMETHING [00:10:03] BACK FOR WHAT THEY'RE INVESTING IN THESE BUSINESSES. THE NEXT ITEM IS LOCATION. WE HAVE DEFINED WHAT WE'LL CALL A REDEVELOPMENT CORRIDOR. SO THOSE CORRIDORS, TEXAS PARKWAY, CARTWRIGHT ROAD, 1092 FIFTH STREET, THOSE CORRIDORS WILL GET AN AUTOMATIC FIVE POINTS BECAUSE THEY'RE LOCATED IN THOSE CORRIDORS WHERE WE WANT TO MAKE SURE THAT WE HAVE MORE, BASICALLY MORE BUSINESSES AND CERTAIN TYPES OF BUSINESSES. AND THEN WE WOULD ALSO GIVE TEN POINTS IF THEY'RE LOCATED, ADDITIONAL POINTS IF THEY'RE LOCATED OFF OF THE TEXAS PARKWAY CORRIDOR, AND TEN ADDITIONAL POINTS THAT ARE LOCATED OFF OF CARTWRIGHT ROAD, WE WOULD GIVE TEN POINTS FOR NATIONAL BRANDS, TEN POINTS FOR DESTINATION BUSINESSES. SO THAT MEANS AN ANCHOR BUSINESS, SOMETHING LIKE A HOTEL, A MAJOR RETAIL CENTER. IT CAN BRING IN A LOT OF FOOT TRAFFIC. THAT WOULD BE AN ANCHOR TYPE OF BUSINESS, FINANCIAL VIABILITY. WE WANT TO LOOK AT WHETHER THESE BUSINESSES CAN ACTUALLY SURVIVE, WHETHER THEY KNOW WHAT THEY'RE DOING IN TERMS OF THEIR BUDGETING, IN TERMS OF THEIR FINANCING, BECAUSE WE DON'T WANT TO INVEST THE PUBLIC'S DOLLARS IN A BUSINESS THAT WILL NOT, YOU KNOW, MAKE IT PAST A YEAR OR SO INNOVATION IF THE BUSINESS IS BRINGING SOMETHING NEW AND UNIQUE, WE DEFINITELY WANT TO RECOGNIZE THOSE BUSINESSES AND AWARD POINTS FOR THAT REASON, ARCHITECTURAL DESIGN, A BASIC A BUSINESS THAT FOLLOWS THE CITY'S BASIC ARCHITECTURAL CODE AND REQUIREMENTS WOULD GET AT LEAST FIVE POINTS. BUT WE'RE A BUSINESS ACTUALLY, YOU KNOW, ADDS SOMETHING TO THAT ARCHITECTURAL DESIGN. WE WANT TO REWARD THAT AND GIVE THEM AN EXTRA TEN POINTS. AND THE LAST POINT FOR NEW DEVELOPMENT IS JOB CREATION. WE DEFINITELY WANT TO ENSURE THAT WHEN BUSINESSES ARE COMING, THEY ARE ADDING VALUE FOR THE RESIDENTS AND FOR THE COMMUNITY. SO IT WOULD GET FIVE POINTS FOR JOB CREATION OR REDEVELOPMENT. AGAIN, WE'RE LOOKING AT TAX IMPACT, ADDITIONAL POINTS FOR LOCATION, BRAND AND ATTRACTION VALUE AND POTENTIAL FINANCIAL VIABILITY AND INNOVATION, AS WELL AS ARCHITECTURAL DESIGN. SO THIS IS THE SIMPLIFIED APPLICATION AND EVALUATION PROCESS. IT WOULD BEGIN WITH A PRE-SUBMISSION MEETING THAT WOULD INCLUDE CITY STAFF, THE ECONOMIC DEVELOPMENT COMMITTEE AND THE APPLICANT. THEN IT WOULD BE FOLLOWED BY THE FORMAL SUBMISSION OF AN APPLICATION, A REVIEW. THE SCORING WOULD TAKE PLACE BY A CITY STAFF INTERNAL COMMITTEE. THAT'S THE SAME THAT YOU ALL HAVE. IT WOULD BE THE SAME ESSENTIAL STAFF THAT YOU ALL HAVE. NOW LOOKING AT THAT, THAT COMMITTEE INCLUDES MEMBERS OF THE ECONOMIC DEVELOPMENT. IT'S A REAL MULTIDISCIPLINARY TEAM. AND THEN IF AN APPLICATION GETS AT LEAST 60 OF THE 100 POINTS, THEN THAT APPLICATION WOULD BE SUBMITTED FOR REVIEW TO THE ECONOMIC DEVELOPMENT COMMITTEE. COUNCIL WOULD THEN CONSIDER THE POTENTIAL RECOMMENDATION FROM THE COMMITTEE IN A CLOSED SESSION PURSUANT TO STATE LAW. AND IF THE DIRECTION IS TO GO FORWARD, STAFF WOULD PREPARE AN AGREEMENT AND THAT WOULD BE FOLLOWED BY FORMAL COUNCIL APPROVAL, COMPLETION AND VERIFICATION, OF COURSE, OF THE PROJECT AND REIMBURSEMENT AFTER IT'S REVIEWED BY A CPA. THIS IS JUST AN EXAMPLE OF THE EDUCATION EDUCATIONAL TYPE OF MATERIAL THAT STAFF WOULD PROVIDE. IT'S AN FAQ THAT WOULD SIMPLIFY THE PROCESS. SO STAFF, STAFF AND THE PUBLIC KNOW KIND OF WHAT TO EXPECT DURING THIS PROCESS. AND AGAIN, INSTEAD OF HAVING MULTIPLE PROGRAMS, THERE'S REALLY ONE ONE PROCESS HERE THAT WOULD APPLY TO EACH IN TERMS OF WHAT OTHER CITIES ARE DOING. JASON, YOU WANT TO JUST TALK BRIEFLY ABOUT WHAT OTHER CITIES ARE DOING. YEAH. SO TAKING A LOOK AT SOME OF OUR NEIGHBORS, WE SEE THAT WE'RE NOT THE ONLY ONES LOOKING AT DOING THESE TYPES OF PROJECTS OR PROGRAMS. SUGARLAND HAS A 20% REIMBURSEMENT UNDER THEIR COMMERCIAL REVITALIZATION GRANT. THEIR THEIR GOAL IS TO TARGET AGING SHOPPING CENTERS AND RETAIL CENTERS. ROSENBERG. ALSO FACADE SIGNAGE AND PROPERTY IMPROVEMENTS ALSO FOR DEMOLITION. THIS IS FOR THEIR INDUSTRIAL GROWTH PROGRAM. PEARLAND IS USING THEIR. FOR TAX DOLLARS FOR INFRASTRUCTURE, PROVIDING LOANS AND TAX ABATEMENTS, AND THEN RICHMOND, AS WELL AS LOOKING AT DOWNTOWN [00:15:03] IMPROVEMENTS AND SIGNAGE WITH UP TO 50% MATCHING GRANTS. SO THIS IS SOMETHING THAT OUR OUR NEIGHBORS ARE DOING AS WE ARE LOOKING TO INCREASE THE ECONOMIC DEVELOPMENT AND THE QUALITY OF THE DEVELOPMENT IN FORT BEND COUNTY. AS JOYCE MENTIONED, THE NEXT STEPS FOR THIS IS WILL RECEIVE FEEDBACK TONIGHT OR ONGOING IN JULY. WE'LL PROVIDE EITHER A SECOND REPORT OR PRESENT ORDINANCE FOR CONSIDERATION. AND THEN IN SEPTEMBER, DEVELOP OUTREACH, EDUCATION AND MARKETING WITH BEGINNING WITH THE IDEA TO BEGIN ACCEPTING APPLICATIONS IN OCTOBER OF 2025. ONE OF THE GOALS WITH THIS ALSO IS TO MAKE SURE THAT THE INFORMATION AND THE MARKETING THAT WE'RE PUTTING OUT THERE IS CLEAR, USER FRIENDLY, AND PEOPLE KNOW EXACTLY WHAT TO DO STEP BY STEP IN THE APPLICATION PROCESS. ALL RIGHT. THANK YOU, I GUESS. I JUST HAVE A QUESTION. SO YOU PRESENTED THIS AND I SEE IT UP HERE THAT SHOWS FEEDBACK. SO ARE WE ARE YOU TAKING FEEDBACK TONIGHT OR ARE YOU TALKING ABOUT AT THE JULY 21ST WHERE WE IT'S OUR FEEDBACK BACK. IT'S UP TO THE CITY COUNCIL, ALTHOUGH IT IS 627. SO WE CAN BRING THIS BACK IN JULY AND THEN GAIN FEEDBACK SO THAT WE HAVE MORE TIME TO TALK THROUGH. MY RECOMMENDATION TO CITY MANAGER IS THIS IS THE FIRST TIME WE'RE SEEING THIS. LET US HAVE THIS IN OUR PACKET. SO LET'S GO THROUGH IT AND ASK QUESTIONS. SO THIS WAY WE'RE READY TO GIVE FEEDBACK THAT MAKES SENSE I DON'T WANT TO REALLY RUSH SOMETHING LIKE THIS. IF A PROGRAM INTO 5 OR 10 MINUTES, BUT AS LONG AS WE CAN GIVE CONSTRUCTIVE, YOU KNOW, FEEDBACK AND LOOKING INTO IT IS MY OPINION, I'M GOING TO YIELD BACK TO RECOGNIZING COUNCILMEMBER CLOUSER. YES. I JUST WANT TO THANK YOU FOR. REALLY REVAMPING THIS PROGRAM AND REALLY LOOKING TO PUT SOME REAL TEETH INTO IT. YOU ANSWERED TWO OF MY QUESTIONS, WHICH WAS THE REFERENCE FOR THE PROGRAMS, WHICH IS GREAT THAT WE'RE LOOKING AT OTHER CITIES AND HOW THEY ARE DOING THIS. AND WE DO HAVE WE DO HAVE BUSINESSES THAT WERE IN THE QUEUE, SO TO SPEAK, FOR OPPORTUNITIES. AND SO I'M GLAD THAT WE ARE WE'RE GOING TO ACTUALLY HAVE A PROGRAM THAT IS NOT AS SUBJECTIVE AS THE OTHER ONE WAS. SO I'M VERY, VERY HAPPY ABOUT THAT. MY ONLY IF YOU CAN GO BACK WITH THE THAT RIGHT HERE, MY QUESTION NUMBER ONE, THAT PRE-SUBMISSION MEETING MEETING WITH CITY STAFF AND THE ED COMMITTEE. WHEN YOU THINK ABOUT HOW MANY APPLICATIONS WE COULD RECEIVE, I'M NOT SURE THAT THE COMMITTEE WOULD NEED TO BE IN ON THAT. IF WE IF WE HAVE THE REVIEW AT NUMBER FIVE. I'M JUST WONDERING, LIKE IF WE HAVE 20 APPLICATIONS, THAT WOULD MEAN THAT WE WOULD HAVE TO MEET 20 WITH WITH 20 PEOPLE. SO JUST, YOU KNOW, THINKING ABOUT ABOUT THAT WHEN THE INITIAL APPLICATION COMES IN. OKAY, I KNOW WE'RE GOING TO BE TALKING ABOUT THIS BACK AND FORTH, BUT THE IDEA WOULD BE THAT WE WOULD GO THROUGH RANK THOSE APPLICATIONS THAT WE GET, AND IF THEY DON'T MEET THE MINIMUM SCORE, THEN WE WOULD BE NOTIFYING THE APPLICANT AT THAT POINT. SO YOU DON'T HAVE A LONG DELAY BETWEEN SOMEONE SUBMITTING SOMETHING AND THEN GETTING A RESPONSE. AND THEN THOSE THAT DO MEET THE 60 THRESHOLD, THOSE WOULD BE THE ONES THAT WOULD BE BEFORE THE. OKAY. SO THIS PRE-SUBMISSION MEETING DOES NOT INCLUDE THE APPLICANT. I WOULD NOT I WOULD NOT SUGGEST OKAY, THAT WAS MY ONLY CONCERN. THANK YOU SO MUCH FOR PUTTING THIS TOGETHER. ALL RIGHT, ALL RIGHT. THANK YOU. THANK YOU JOYCE. SEEING NO ONE ELSE IN THE QUEUE. SO THERE'S NO FURTHER BUSINESS. THE TIME IS 6:31 P.M. THE * This transcript was compiled from uncorrected Closed Captioning.