[3. PUBLIC COMMENTS]
          [00:00:11]
          YES. WE HAVE ONE, MR. NISHI. 
          AND I'M ON MY WAY. OH. THANK YOU. THEME WITHIN. WOW. THEME WITHIN MISSOURI CITY. AND THAT IS NOT HAVING ENOUGH MONEY, RIGHT? WE'RE CONSTANTLY BUDGET CONSTRAINED. EVEN WHEN WE'VE BEEN TALKING ABOUT THIS WETLANDS PROJECT, WHICH I THINK A LOT OF Y'ALL ARE INWARDLY VERY EXCITED ABOUT, THE BIG THING IS MONEY. HOW WOULD WE FUND IT? AND ONE OF THE THINGS I WANTED TO EXPLORE AND TALK ABOUT WITH YOU IS SALES TAX REVENUE, RIGHT? I THINK THERE'S A BIG PUSH FOR COMMERCIALIZATION WITHIN MISSOURI CITY. AND AS I YOU KNOW, I'VE KIND OF GOTTEN MORE FAMILIAR WITH THE CITY. I'VE LEARNED THAT MISSOURI CITY HAS A RELATIONSHIP WITH THE METRO, WHERE THE 2% SALES TAX, 1% GOES TO MISSOURI CITY, 1% GOES TO MTA, AND THEN THEY REBATE US 50% OF THAT 1%, 50% OF THE 1% FOR STREET IMPROVEMENTS, MOBILITY AND THINGS LIKE THAT. AND SO I WANTED TO DIG DEEPER BECAUSE I WAS LIKE, WOW, THAT MEANS BASICALLY HALF OF OUR SALES TAX REVENUE GOES TO THE METRO. AND THAT'S KIND OF, KIND OF A LOT, RIGHT? THAT'S KIND OF A LOT. 
          THAT'S 50%. AND SO, YOU KNOW, WANTING TO DIG DEEPER, I LOOKED AT OUR COMPARISONS THAT WE ALWAYS WHO WE WANT TO BE SUGARLAND AND PEARLAND. AND THEY BOTH RETAIN THEIR FULL 2% OF SALES TAX. RIGHT. AND PEARLAND, FUNNY ENOUGH, ACTUALLY DEDICATES 0.5% OF ITS 2% TO ECONOMIC DEVELOPMENT. SO WHAT DOES THAT MEAN FOR US? WE EFFECTIVELY HAVE HALF THE MONEY THAT WE SHOULD HAVE COMING IN FOR ANYTHING COMMERCIAL THAT WE DO, RIGHT? SO IN FY 23 THAT EQUALS $16 MILLION. SO THAT MEANS WE COULD HAVE HAD $32 MILLION, RIGHT. SO AGAIN, THAT'S $16 MILLION THAT WE'RE LEAVING ON THE TABLE JUST RIGHT THERE. SO AGAIN, WHEN WE TALK ABOUT GREEN SPACE, RIGHT, WITH THAT ADDITIONAL $16 MILLION COMING IN A YEAR'S, WE'D BE ABLE TO BUY ALL THE WETLANDS WE HAD MENTIONED, AND WE'D BE ALSO BE ABLE TO MAINTAIN THEM IN A, IN A SELF MAINTAINED WAY. SO NOT ONLY BUY THE LAND, BUT ACTUALLY HAVE FUNDS IN THE COFFERS TO MAINTAIN THE LANDS AND CONTINUE TO DO THAT WITHOUT LIKE HAVING TO, YOU KNOW, PASS BONDS, INCREASE TAXES, ETC. SO, YOU KNOW, WHEN WE TALK ABOUT ONE OF THE BIG CONCERNS FOR THE PUBLIC, IT'S ELECTION YEAR IS FLOOD INSURANCE, FLOOD INSURANCE PRICES GOING UP, FLOOD INSURANCE BEING MANDATED, THINGS LIKE GREEN SPACE IS AGAIN WHAT WE ONE OF THE BEST BENEFITS FOR FLOOD AND FLOOD MITIGATION WHEN THEY SEE THAT LIKE THE INSURANCE COMPANIES, SEE ALL THOSE GREEN SPACES STARTING TO BE CONCRETED OVER AND LESS AND LESS THERE, THAT'S WHEN WE START HAVING FLOOD INSURANCE MANDATED AND THOSE PRICES INCREASING. SO CURRENTLY, TO GET KIND OF DEEPER INTO THIS ANALYSIS, I LOOKED AT WHAT IS OUR USAGE OF METRO, RIGHT. I WAS LIKE, IF WE'RE GOING TO GIVE THEM 50% OF OUR SALES TAX, THEN HOPEFULLY 50% OF OUR POPULATION USES IT. AND OBVIOUSLY THAT PROBABLY ISN'T TRUE. BUT CURRENTLY WE'RE ABOUT 400 TO 500. AND ACTUALLY RIDERSHIP HAS NOT GONE UP SINCE THE PARKING GARAGE HAS OPENED, WHICH I THOUGHT AS A BUSINESSPERSON KIND OF NOT A GREAT SIGN, BUT ESSENTIALLY STAYED THE SAME. AND SO THERE'S 1785 PARKING SPOTS. AGAIN, MAXIMUM RIDERSHIP IS AROUND 500. SO THAT MEANS AGAIN, THREE, THREE FOURTHS OF THAT SPACE IS UNUSED AND NOT USED BY ANYONE. SO WE'RE GIVING ESSENTIALLY $16 MILLION A YEAR UP FOR SOMETHING THAT LESS THAN 1% OF MISSOURI CITY'S POPULATION USES, RIGHT? I DID THE MATH, AND I THINK IT'S HALF OF A SINGLE PERCENT. SO THAT IS A REALLY KIND OF BIG, GLARING RED LIGHT FISCAL EXAMPLE. YOU COULD DOUBLE THE COMMERCIAL ANYTHING IN MISSO&RI CITY AND YOU'D ESSENTIALLY IT WOULD BE THE SAME AMOUNT OF MONEY THAT YOU MAKE. NOW, IF YOU JUST RATIONALIZE THIS CONTRACT AND AS WE WOULD SAY IN THE BUSINESS WORLD, THIS IS LIKE A MOB LIKE TO ME, LIKE CONTRACT, RIGHT? I'D ACTUALLY RATHER IT BE THE MOB BECAUSE I THINK THERE IS 20% THERE, BUT 50% IS INSANE. 
          AND THAT WOULD BE A GREAT IDEA FOR YOU ALL TO LOOK INTO AND PAY ATTENTION TO. THANK YOU. THANK YOU. WE HAVE NO OTHER PUBLIC SPEAKERS SIGNED UP. OKAY. WELL, I GUESS WE'LL MOVE ON TO AGENDA 
          [a. Public Hearing - To receive comments for or against a moratorium pursu...]
ITEM NUMBER FOUR. OTHER MATTERS WITHIN THE JURISDICTION OF THE COMMISSION OR THE CAPITAL IMPROVEMENTS ADVISORY COMMITTEE. AGENDA ITEM FOUR A PUBLIC HEARING TO RECEIVE COMMENTS FOR OR AGAINST MORATORIUM PURSUIT PURSUANT TO SUBCHAPTER E OF CHAPTER 212 OF THE TEXAS LOCAL GOVERNMENT CODE AND DEVELOPMENT ON COMMERCIAL PROPERTY CONSISTING OF SMOKE SHOPS, 
          [00:05:01]
INCLUDING RETAIL ESTABLISHMENTS ENGAGED IN THE SALE OF SMOKING AND VAPING PRODUCTS WITHIN THE CORPORATE LIMITS OF MISSOURI CITY, TEXAS. THANK. GOOD EVENING, COMMISSIONERS. AS YOU ALL KNOW, THE CITY IS CURRENTLY REVIEWING ITS COMPREHENSIVE PLAN TO PROVIDE AN UPDATE. PART OF THAT REVIEW WAS TO CONSIDER THE DIFFERENT USES THAT ARE CURRENTLY ALLOWED AND AUTHORIZED UNDER THE CITY'S ORDINANCES. ONE USE THAT HAS KIND OF COME UP IS THE USE OF PROPERTY AS SMOKE AND VAPE SHOPS. THE CITY HAS SEEN AN INCREASE IN THE NUMBER OF SMOKE AND VAPE SHOPS IN RECENT YEARS, AND THIS PROPOSED MORATORIUM WOULD ADDRESS THAT. IN REQUIRING THE STAFF TO NOT CONSIDER ADDITIONAL SMOKE AND VAPE SHOPS UNTIL THE CITY HAS HAD THE OPPORTUNITY TO REVIEW ITS ORDINANCES TO ADDRESS THE DENSITY THAT IS OCCURRING WITH SMOKE AND VAPE SHOPS. THIS SPEAKS TO THE COUNCIL'S GOAL OF CREATING A GREAT PLACE TO LIVE. AS MENTIONED, SMOKE AND VAPE SHOPS ARE CURRENTLY AUTHORIZED UNDER SECTION SEVEN OF THE CITY ZONING ORDINANCE. MOST OF THE SMOKE AND VAPE SHOPS IN MISSOURI CITY ARE LOCATED ALONG A MAJOR MAJOR THOROUGHFARES, SPECIFICALLY HIGHWAY SIX AND FM 22. 34 ALSO HAS SEVERAL SMOKE AND VAPE SHOPS AS WELL, AND AS YOU CAN SEE FROM THE MAP BEFORE YOU, CARTWRIGHT ROAD ALSO HAS SEVERAL SMOKE AND VAPE SHOPS. 
          MISSOURI CITY, AS COMPARED TO OUR NEIGHBORS, HAS ABOUT 20 SMOKE AND VAPE SHOPS. SUGARLAND HAS ABOUT NINE. PEARLAND HAS 11, AND ROSENBERG HAS 16. SUGARLAND AS RECENTLY AS LAST YEAR IN 2024, PROHIBITED ADDITIONAL SMOKE AND VAPE SHOPS WITHIN THEIR CITY LIMITS. PEARLAND HAS A VERY RESTRICTIVE REGULATION IN THAT SMOKE AND VAPE SHOPS ARE ONLY ALLOWED IN EXTREME INDUSTRIAL AREAS WITH A SPECIFIC USE PERMIT, AND THEY'RE PROHIBITED IN ALL OTHER DISTRICTS. THIS OPPORTUNITY, THIS MORATORIUM, WOULD GIVE STAFF THE OPPORTUNITY AND YOU ALL TO LOOK AT RECOMMENDATIONS AS IT RELATES TO ADDRESSING THE HIGH DENSITY AND THE LEVEL OF SMOKE AND VAPE SHOPS THAT ARE EXISTING IN MISSOURI CITY. AS YOU ALL MAY KNOW, THE NATIONAL INSTITUTE OF HEALTH IS, AS WELL AS THE CDC, THE CENTER FOR DISEASE CONTROL HAVE FOUND THAT THERE ARE THERE IS A DETRIMENTAL IMPACT ON THE PUBLIC AND PUBLIC HEALTH AS IT RELATES TO SMOKING AND VAPING. THAT MATERIAL, AND SOME OF THOSE POINTS ARE INCLUDED IN YOUR COVER MEMO. SO I WILL NOT DELIVER THAT POINT. BUT THIS PROPOSED MORATORIUM WOULD ADDRESS AREAS THAT ARE WITHIN THE CORPORATE LIMITS OF THE CITY, AS WELL AS AREAS THAT ARE SUBJECT TO LAND USE REGULATIONS IN THE CITY. IT WOULD APPLY TO COMMERCIAL PROPERTIES, AND AS YOU CAN SEE FROM THE SLIDE, IT WOULD ADDRESS PROPERTIES THAT ARE USED AS SMOKE SHOPS, VAPE SHOPS, DISPENSARIES THAT SMELL SMOKING RELATED PRODUCTS INCLUDING CIGARETTES, CIGARS, E-CIGARETTES, HEIGHTS, HOOKAHS, BONGS, TOBACCO, CANNABIS, THC, VAPE CARTRIDGES, AND CHEWING TOBACCO. IF MORE THAN 30% OF GROSS SALES ARE MADE UP OF THOSE PRODUCTS. THE REASON STAFF IS RECOMMENDING THE 30% LEVEL IS THAT THERE ARE CONVENIENCE STORES AND GROCERY STORES THAT ALSO SELL TOBACCO RELATED PRODUCTS, SO THE 30% IS REALLY INTENDED TO CAPTURE STORES THAT SELL A LARGE AMOUNT OF THESE TYPE OF SMOKING PRODUCTS. THE OBJECTIVE OF THIS MORATORIUM IS TO PROVIDE YOU ALL OF THE CITY COUNCIL WITH A NEW ORDINANCE THAT ADDRESSES SMOKE AND VAPE SHOPS IN THE CITY, AND TO PAUSE TEMPORARILY, NEW APPLICATIONS FOR DEVELOPMENT FOR SMOKE AND VAPE SHOPS. STATE LAW ALLOWS A MORATORIUM OF THIS NATURE THAT IMPACTS, IMPACTS, PUBLIC HEALTH, SAFETY AND WELFARE TO LAST 90 DAYS, WITH EXTENSIONS UP TO 180 DAYS. THIS PROPOSAL IS ONLY FOR 90 DAYS, WHICH WOULD TERMINATE THE MORATORIUM ON OR ABOUT NOVEMBER 9TH, 2025. SO THE NEXT STEPS AT THIS POINT ARE FOR YOU ALL TO CONDUCT A PUBLIC HEARING. THE CITY COUNCIL DID CONDUCT A PUBLIC HEARING ON MONDAY ON THIS ISSUE. THIS IS THE PLANNING AND ZONING COMMISSION COMMISSION'S OPPORTUNITY TO CONDUCT ITS PUBLIC HEARING AND ISSUE A REPORT, AS WELL AS JUST AS AN 
          [00:10:06]
FYI TO YOU, THE TEMPORARY MORATORIUM DOES TAKE EFFECT AS OF TODAY. IT OCCURS FIVE DAYS AFTER FIVE BUSINESS DAYS AFTER NOTICE. NOTICE OF THE PUBLIC HEARING. THE FIRST PUBLIC HEARING WAS PUBLISHED LAST THURSDAY. SO TODAY WOULD BE THE DAY THAT THE TEMPORARY MORATORIUM TAKES EFFECT. IT WILL END ON AUGUST 4TH. IF COUNCIL DOES NOT ADOPT THAT ORDINANCE, PROVIDING FOR THE MORATORIUM. SO THIS SLIDE PROVIDES NEXT STEPS. AND IF THE COUNCIL ADOPTS THE ORDINANCE, THE MORATORIUM AGAIN WILL CONTINUE UNTIL NOVEMBER 9TH OF 2025. I'M HAPPY TO ANSWER ANY QUESTIONS YOU ALL HAVE BEFORE YOU OPEN YOUR PUBLIC HEARING. IF NOT, I'LL LET YOU OPEN UP THAT PUBLIC HEARINGS. I DO HAVE ONE QUESTION. IN LIGHT OF WHAT THE STATE LEGISLATURE HAS BEFORE THEM NOW PERTAINING TO THC, I THINK THIS WOULD BE A GOOD THING TO DO TO SEE WHAT THE OUTCOME IS GOING TO BE WITH THAT, BECAUSE THAT'S A BIG YES. AND THE STATE LEGISLATURE ACTUALLY PASSED A BAN IN THE LEGISLATURE. THAT BILL WAS VETOED. AND THEY ARE LOOKING AT THAT AGAIN IN THIS SPECIAL SESSION. SO THC HAS BEEN INCLUDED AS WELL IN THIS PROPOSED MORATORIUM. I HAD A QUICK QUESTION. YES. I'M CURIOUS TO KNOW WHERE THE IN THE LANGUAGE THE 30% CAME FROM IF THAT WAS BENCHMARKED. AND I'M ASKING BECAUSE I'M WONDERING IF A COMPANY MAYBE AT THE BOUTIQUE LEVEL OR SOMETHING SMALLER WHERE THEY COULD ATTEMPT TO BE UNDER THE THRESHOLD AND STILL MOVE FORWARD, DO WE ARE WE AT ANY POTENTIAL RISK FOR THAT TYPE OF ACTIVITY, WHERE WE KNOW WHAT THE SPIRIT OF THE PROPOSED MORATORIUM IS? BUT PEOPLE COULD POTENTIALLY STILL GET AROUND IT? THERE'S ALWAYS THAT POTENTIAL. THE 30% ACTUALLY CAME FROM A REPORT BY THE CONVENIENCE STORE ASSOCIATION, WHERE THEY FOUND THAT CONVENIENCE STORE SALES OF TOBACCO PRODUCTS WERE AT ABOUT 25 TO 27%. THE STATE DID HAVE SOME LEGISLATION THAT WAS PROPOSED IN THE LAST SESSION, WHERE THEIR THRESHOLD WAS AT ABOUT 50%, BUT WE WERE TRYING TO MAKE SURE THAT WE DID INCLUDE A MORE MORE ENTITIES VERSUS LESS SO THAT THE CITY COULD REALLY USE THE TIME TO REVIEW THE ISSUE. THANK YOU. AND SO QUICK FOLLOW UP QUESTION SLASH COMMENT. THERE'S ROOM DOWN THE ROAD TO ADJUST THAT NUMBER. OH ABSOLUTELY. PERFECT. ABSOLUTELY. AND THE PROPOSED ORDINANCE DOES INCLUDE EXCEPTIONS. IT DOES INCLUDE A WAIVER PROCESS. SO IF THERE IS A BUSINESS THAT THINKS THAT THEY SHOULD HAVE A WAIVER, THEY WILL HAVE THE OPPORTUNITY TO PRESENT THAT CASE TO THE CITY COUNCIL FOR A DECISION ON WHETHER OR NOT THEY SHOULD HAVE THE WAIVER. BUT AGAIN, WE WERE TRYING TO INCLUDE MORE SO THAT THE CITY WOULD REALLY HAVE THE OPPORTUNITY TO LOOK AT THE TYPES OF VAPE AND SMOKE SHOPS THAT IT IS ATTEMPTING TO ADDRESS WITH THE PROPOSED ORDINANCE. THANK YOU. I HAD A COUPLE QUESTIONS. I LISTENED TO THE CITY COUNCIL DISCUSSION FROM THE OTHER NIGHT. 
          BUT ONE THING I GUESS I STILL WASN'T REAL CLEAR ON IF THERE IS. IF THIS GOES INTO PLACE, WHAT HAPPENS TO THOSE BUSINESSES THAT ARE CURRENTLY OPERATING UNDER THAT? THEY BECOME KIND OF A NONCONFORMING USE WHERE IF THEY WANT TO LIKE, WE'VE HAD THIS DISCUSSION WITH GAS STATIONS, THERE'S THEY FALL UNDER THAT SAME KIND OF UMBRELLA WHERE IF THEY WANT TO MAKE CHANGES OR SELL OR DO THOSE THINGS. SO THIS CURRENT PROPOSAL THAT IS BEFORE YOU IS FOR A MORATORIUM. SO THAT'S A MORATORIUM ON APPLICATIONS CONSENTS AND AUTHORIZATIONS. SO EXISTING SMOKE AND VAPE SHOPS WOULD CONTINUE TO OPERATE AS THEY ARE OPERATING. THERE ISN'T OR WOULD NOT BE A CHANGE IN THE CITY'S PROVISIONS BASED ON THIS MORATORIUM. THIS ONLY GIVES STAFF THE AUTHORITY TO REJECT APPLICATIONS FOR THIS TYPE OF USE FOR A TEMPORARY PERIOD. NOW, I DO BELIEVE I DON'T KNOW IF THE AGENDA HAS BEEN POSTED YET, BUT THERE IS A PROPOSED ORDINANCE THAT IS IN THE QUEUE THAT WOULD PROHIBIT ADDITIONAL SMOKE AND VAPE SHOPS IN MISSOURI CITY. SO THAT ORDINANCE, IF PASSED, WOULD MAKE SMOKE AND VAPE SHOPS NON-CONFORMING USES, WHICH WOULD THEN HAVE TO GO THROUGH THE SAME TERMINATION PROCESS. AS WE DISCUSSED WITH GAS STATION, IF THE CITY EVER DECIDED THAT IT WOULD FORCE THEM TO CLOSE. BUT AS I MENTIONED IN THAT PROCESS THERE THERE IS A VERY SPECIFIC PROCESS THAT THE CITY WOULD HAVE TO FOLLOW IF IT WANTED TO 
          [00:15:07]
REQUIRE THOSE ENTITIES TO ACTUALLY STOP OPERATING. OKAY, OKAY. A COUPLE OTHERS. SO YOU TALK ABOUT RETAIL SALES. IT TALKS ABOUT RETAIL SALES IN HERE. DOES THAT INCLUDE ONLINE SALES. SO CAN SOME OF THESE BECAUSE I GUESS IF THE OTHER QUESTION I HAD IS THERE ANYTHING OUT THERE SOMEBODY'S GOT TO HAVE LOOKED AT IT, BECAUSE IT SEEMS LIKE A LOT OF THESE SHOPS OPEN TO POSITION THEMSELVES FOR POTENTIALLY SELLING THC PRODUCTS AND SO FORTH DOWN THE ROAD. AND WE'VE GOT MORE THAN ANY OF OUR KIND OF NEIGHBORING COMMUNITIES. IS THERE ANYTHING OUT THERE THAT INDICATES THAT? THAT'S EXACTLY WHY THEY SET UP, AND THAT'S WHERE THEY'RE GOING, AND THAT'S WHERE THEIR BUSINESS MODEL HAS THEM LOOKING FOR THE FUTURE. SO THEY HAVE THAT SPOT SO THEY CAN DO THAT. AND IF THAT'S THE CASE, HOW DO HOW DO ONLINE SALES POSSIBLY ALLOW THEM TO STAY IN BUSINESS WAITING FOR THAT TO HAPPEN? SURE. SO TO ANSWER YOUR SECOND QUESTION FIRST, WE DID NOT LOOK AT THAT. WE DON'T KNOW THE INTENTION OF THESE BUSINESSES. I DID READ SOMEWHERE THAT THEY CAN BE SOMEWHAT PROFITABLE DEPENDING ON THE LOCATION OF THE BUSINESS, BUT I DON'T I CAN'T SPEAK TO THE INTENT OF WHY EACH INDIVIDUAL PROPERTY OWNER OR BUSINESS OWNER OPENED THIS TYPE OF BUSINESS. AS IT RELATES TO YOUR FIRST QUESTION, WHICH WAS WHETHER THIS WOULD ADDRESS ONLINE SALES, THIS IS LAND USE. AND SO THIS IS THIS SPECIFICALLY RELATES TO BRICK AND MORTAR LOCATIONS WITHIN OUR CITY LIMITS. I'VE GOT IT FITTED. SO IF I WROTE A BRICK AND MORTAR AND I'M SELLING A WHOLE BUNCH OF STUFF SO I COULD OPEN A, AN ONLINE BUSINESS SELLING BASEBALL CARDS, WELL, ALL OF A SUDDEN MY VAPE BUSINESS IS UP, 30% OF MY BUSINESS IS PROBABLY 500. SO THAT'S WHAT I WAS WONDERING ABOUT. WHEN YOU TALK ABOUT THE MIXED USE KIND OF TO THE OTHER SIDE OF, OF COMMISSIONERS, QUESTION IS, COULD THEY DO SOMETHING TO GET UNDERNEATH THAT NUMBER BUT STILL OPERATE OUT OF THAT LOCATION IF THEY'RE DOING THEIR ONLINE, OUT OF THAT LOCATION? JUST A QUESTION. POSSIBLY. OKAY. I'M DONE. THANK YOU. AND I SAY POSSIBLY THAT'S NOT LEGAL ADVICE AS TO WHETHER OR NOT THEY CAN SELL THIS TYPE OF TOBACCO OR DRUGS IN THE MAIL THROUGH THE FEDERAL SYSTEM OR, OR PRIVATE PARCELS OR DELIVERY SERVICES. BUT POSSIBLY I WANTED TO MAYBE CONSIDER WHEN YOU IF WE DO PUT A MORATORIUM IN PLACE, IS THAT'S A POSSIBILITY TO ADDRESS. 
          THANK YOU. COULD WE STAY ON HIS STREET FOR LIKE TWO SECONDS. BECAUSE IF THEY DO ONLINE SALES BUT THEY PICK UP IN PERSON, THEN THAT BRICK AND MORTAR WOULD THAT FALL ON? I THINK IF THEY PICKED UP IN PERSON THAT WOULD FALL UNDER. THAT'S A GOOD QUESTION. YEAH. THE GROSS SALES, I DO THINK THAT WOULD FALL UNDER THAT IF THEY ACTUALLY HAD CUSTOMERS COMING IN. YEAH. SO CAN SOME OF THAT NOW THAT WE'VE HAD A DISCUSSION ABOUT IT, COULD THAT BE CONSIDERED TO BE PUT IN THER. 
          BECAUSE THAT'S THEIR OPPORTUNITY TO CIRCUMVENT THE SYSTEM, SO TO SPEAK, I WOULD THINK I CAN LOOK INTO ONLINE SALES AND HOW WE COULD POSSIBLY ADD THAT TO THE ORDINANCE, YOU KNOW, PICK UP PICKUPS I THINK ARE EASIER TO ADDRESS. BUT SALES FROM THE BUSINESS TO, YOU KNOW, COLORADO OR WHEREVER, FOLKS ARE SELLING THIS TYPE OF PRODUCT TO, I NEED TO LOOK AT WHETHER AND TO THE EXTENT THAT WE CAN DO THAT WITH ALL THE, YOU I'M NOT. NO WORRIES. YOU ALL ALWAYS HAVE INTERESTING QUESTIONS. SO PROBABLY. WHAT IT IS, IS I HAVE ONE QUESTION REGARDING THE DAYCARES AND NAIL SHOPS AND THE BUSINESS SURROUNDING THESE, THESE. SMOKE VAPE SHOPS. THERE'S CHURCHES THAT FROM TIME TO TIME OPEN UP IN THESE MALLS. WAS THERE AN ORDINANCE THERE THAT THOSE GUYS WERE THERE IS NOT. THAT IS SOMETHING AND THIS IS ONLY THIS ONLY RELATES TO THE MORATORIUM ON ACCEPTING APPLICATIONS. THAT'S CERTAINLY SOMETHING THAT COULD COME UP IN THE DISCUSSIONS OF THE PROPOSED ORDINANCE. THERE ARE SOME CITIES, I BELIEVE IS ONE OF THEM THAT HAS DISTANCE REQUIREMENTS FROM CERTAIN USES. SO THAT IS CERTAINLY A CONSIDERATION. BUT MY UNDERSTANDING IS THAT THE PROPOSED ORDINANCE THAT WILL COME BEFORE YOU ALL ON THIS TOPIC WOULD PROHIBIT ADDITIONAL SMOKE AND VAPE SHOPS IN THEIR ENTIRETY. SO THE SHOPS WE HAVE NOW WOULD BE GRANDFATHERED. THEY WOULD BE GRANDFATHERED. YES, SIR. I THINK THAT IT WOULD BEHOOVE US TO LOOK AT SOME OF THE STATE GUIDELINES AND REGISTER SOME OF THAT. THOSE ARE POTENTIALLY GOING TO BE CHANGING THAT. YES, BEFORE THE LEGISLATURE NOW. SO WE NEED TO 
          [00:20:04]
KEEP AN EYE ON THAT BECAUSE THAT IS A VALID QUESTION. YEAH. YOU KNOW, THE PROXIMITY OF A DAYCARE OR SCHOOL, YOU KNOW, THE EFFORT IS TO KEEP IT OUT OF CHILDREN'S. YES. AND I KNOW THE STATE IS ACTUALLY FOCUSING ON THAT AREA. AND THEY'RE ALSO LOOKING AT A LOT OF MARKETING REGULATIONS AS WELL AS IT RELATES TO THE YOUTH. I HAVE ONE QUESTION. HAVE THERE BEEN ANY STUDIES DONE TO SHOW HOW THESE FACILITIES AFFECT CRIME OR BRINGING CRIME TO CERTAIN AREAS? THERE THERE IS, AND I BELIEVE IT'S POSTED IN THE CITY COUNCIL PACKET. THERE IS A STUDY THAT DOES DISCUSS PROXIMITY TO THESE LOCATIONS AND PUBLIC SAFETY. IT'S IT LOOKS AT ABOUT 100FT FROM DIFFERENT VAPE AND SMOKE SHOPS. AND THAT'S A PUBLICLY AVAILABLE NOW IN THE CITY COUNCIL PACKET FOR MONDAY. 
          AND JUST ONE LAST THING. WE MAY HAVE DISCUSSED IT IN CRAFTING THIS ORDINANCE. YOU DID LOOK AT SOME OF THE SURROUNDING CITIES TO SEE WHAT THEY HAVE IN THEIRS, TO SEE WHAT WE COULD BEST USE. 
          ALSO, I DID, BUT AND YOU KNOW, TO BE CANDID, THE GOAL WAS TO NOT HAVE MORE JUST BASED ON ALL OF THE PUBLICLY AVAILABLE INFORMATION AND THE DETRIMENT POTENTIAL DETRIMENT TO PUBLIC HEALTH, SAFETY AND WELFARE. AS I HAD MENTIONED EARLIER, SUGARLAND COMPLETELY BANS ADDITIONAL OR NEW DAVE AND SMOKE SHOPS, AND SO THAT'S KIND OF THE PATH THAT WE ARE RECOMMENDING THAT THE CITY TAKE, BECAUSE AS A COMMUNITY LIKE THAT, THAT'S RIGHT NEXT DOOR TO OUR COMMUNITY HAS THAT TYPE OF REGULATION. THOSE USES WILL POUR OVER INTO OUR COMMUNITY. AS WE CAN SEE WITH THE NUMBER, YOU KNOW, ON ALREADY LOCATED IN THE SPACE. ALREADY HAVE THEM. THANK YOU. ANY OTHER DISCUSSION? THANK YOU, THANK YOU. YES. WE'LL MOVE ON TO AGENDA ITEM FIVE A YES. YOU NEED TO OPEN AND CLOSE YOUR PUBLIC. OH OKAY. WE NEED TO MAKE A MOTION. SORRY. DO WE NEED TO MAKE A MOTION. YES. OKAY. TO CALL FOR THE PUBLIC HEARING OKAY OKAY OKAY. THANK YOU. ALL RIGHT. 
          YEAH. COMMISSIONER DAVIDSON CALLS FOR THE PUBLIC HEARING TO BE OPEN. YES, THAT'S MY MOTION. 
          I. COMMISSIONER DAVIDSON, CALL IT. WELL, YOU SHOULD CALL TO SEE IF ANYONE HAS SIGNED UP TO SPEAK. WE HAVE NOBODY REGISTERED TO SPEAK ON THIS AGENDA ITEM. OKAY, SO NOW WE CAN MAKE A MOTION TO CLOSE IT. SO MOVED. OKAY. I, I. GUESS. GO. YES, YES. WE MOVE ON 
          [a. Receive a Presentation and Hold a Discussion - Comprehensive Plan fisc...]
TO AGENDA ITEM FIVE A. ALL RIGHT. WELL I'M GOING TO HAVE JUSTIN PULLIAM, OUR SENIOR PLANNER, INTRODUCE OUR GUEST SPEAKER. AND WE HOPE THAT THIS IS A INFORMATIVE, INTERACTIVE DISCUSSION THAT WILL HELP GUIDE YOU AS WE CONTINUE THROUGH THIS COMPREHENSIVE PLAN UPDATE PROCESS. SO WITH THAT I'M GOING TO INTRODUCE AND THEN WE'LL GET STARTED FROM THERE. THANK YOU. 
          GOOD EVENING COMMISSIONERS. GOOD EVENING. I AM HAPPY TO INTRODUCE FELIX LANDRY HERE. HE IS A VERY SMART INDIVIDUAL. HE DOES A LOT OF FISCAL ANALYSIS FOR CITIES. HE HAS AN INCREDIBLE AMOUNT OF ACCOLADES WORKING IN A BUNCH OF DIFFERENT AREAS. I WAS INTRODUCED TO HIM, ALONG WITH MY COLLEAGUES AND SOME OF THE COMMISSIONERS HERE AT THE TEXAS CITIZEN PLANNER CONFERENCE, AND WHERE HE'S SPECIALIZED IN TONIGHT IS IN SCENARIO PLANNING AND SHOWING HOW DIFFERENT KINDS OF DEVELOPMENTS AND THE DIFFERENT WAYS THAT WE ASSESS THEM TAX WISE, IN TERMS OF PER ACRE, PER SQUARE FOOTAGE OR PER PARCEL, CAN HAVE A REAL BIG IMPACT ON THE CITY'S FINANCES AND THE DEVELOPMENT OF THE CITY. SO FURTHER ADO, PLEASE GO AHEAD. THANK YOU. THANK YOU JUSTIN. 
          GOOD EVENING, COMMISSIONERS AND STAFF AND CITIZENS. MAYBE JUSTIN SAID, MY NAME IS FELIX. I'M SURE 
          [00:25:07]
MAKING IT NERVOUS WITH MY WATER BOTTLE. LIKE JUSTIN SAID, I WORK IN CITY PLANNING. I'VE BEEN WORKING FOR ABOUT 15 YEARS. MOST OF IT HAS BEEN ON THE STAFF SIDE, SO IT'S REALLY FUN TO BE IN A COUNCIL CHAMBERS AGAIN. SPEAKING WITH COMMISSIONERS. A LOT OF MY CAREER OFF AND ON, IS FOCUSED ON DATA ANALYSIS, SPECIFICALLY WITH FINANCES FOR CITIES. SO I BUILT MY FIRST MODELS WITH THE CITY. I WENT ON TO DO SOME CONSULTING, AND NOW I WORK FOR THE A&M EXTENSION OFFICE, IDEALLY WORKING FOR A VARIETY OF CITIES ACROSS TEXAS. SO I GOT TO MEET SOME OF YOUR STAFF AT THE TEXAS CITIZEN PLANNER SESSIONS, WHERE I WENT OVER SCENARIO PLANNING. AND THE IDEA TONIGHT IS TO INTRODUCE AND WALK THROUGH A BIT OF THE CONCEPTS THAT I TEND TO FOCUS ON THAT I THINK ARE ARE VERY USEFUL. IT'S A BIT OF A UNIQUE CONTEXT TO THINK ABOUT CITY PLANNING IN. SO WE'LL START BROADLY AND HIT SOME BIG CONCEPTS. AND THEN THE FURTHER ALONG WE GO, THE MORE DOWN INTO THE DETAILS WE'LL GET. SO WE'LL START OFF WITH CONCEPTS AND SOME EXAMPLES FROM OTHER CITIES. WE DO HAVE SOME MISSOURI CITY DATA TO GET INTO. WE SHOULD BE FUN ANYTIME ALONG THE WAY. IF YOU GUYS HAVE QUESTIONS OR IF YOU NEED TO TAKE A BREAK, FEEL FREE TO ASK QUESTIONS OR TO COLLABORATE OR STEP OUT IF YOU NEED TO. I WON'T BE OFFENDED. 
          OKAY, SO WHEN WE TALK ABOUT FISCAL ANALYSIS FOR A LOT OF CITY PLANNERS AND MAYBE FOR COMMISSIONERS OR COUNCIL MEMBERS, TALKING ABOUT FINANCIAL ANALYSIS AND CITY PLANNING IS A BIT NEW, WE SHOULDN'T THINK OF IT THAT WAY. IT'S A PRETTY OLD PRACTICE. ANYTIME WE THINK ABOUT STEWARDING RESOURCES OR ACCOUNTING THE COST, YOUR FINANCIALLY ANALYZING THE DECISIONS YOU'RE ABOUT TO MAKE. SO IT'S NOTHING NEW. IT'S A BIT OF A REDISCOVERING OF WHAT WE DO IN A LOT OF OTHER PLACES, AND TRYING TO APPLY IT TO A FIELD THAT HAS HISTORICALLY FOCUSED MOSTLY ON HEALTH, SAFETY HAZARDS, ENVIRONMENTAL HAZARDS AND SOCIAL DYNAMICS OF CITIES. 
          BUT THERE'S DEFINITELY A FINANCIAL COMPONENT THAT WE'LL GET INTO. THERE'S A LOT OF REASONS WHY YOU MIGHT DO THIS. SOME OF THE MORE SUPERFICIAL ONES ARE TO CREATE A REALLY HIGH RETURN ON INVESTMENT, TO HAVE REALLY FUN GRAPHICS, AND TO GET SOME SUPPORT AND SOME ENERGY BEHIND A PLANNING PROCESS. BUT AT THE END OF THE DAY, THE FINANCIAL, THE FOUNDATIONAL PURPOSES THAT I GO FOR ARE VIRTUOUS. SO AS ELECTED AND APPOINTED OFFICIALS, THE STAFF MEMBERS, THE CITIZENS, WE SHOULD STEWARD OUR RESOURCES WELL. SO A LOT OF THIS FOR ME AND MY BACKGROUND IS ABOUT STEWARDSHIP. WE TALK ABOUT VIRTUES. BEING PRUDENT IS BEING ABLE TO MAKE WISE DECISIONS AND PRESENT THAT WILL GET US TO A BETTER FUTURE. JUSTICE RENDERING TO PEOPLE WITH THEIR DUE. SO THAT GOES THAT'S A VERY MUCH A TWO WAY STREET, SOMETIMES A FOUR WAY INTERSECTION. AS A CITY, WE RECEIVE FUNDS AND WE SHOULD DISTRIBUTE THOSE FUNDS AND USE THOSE FUNDS IN A WAY THAT PROVIDES THE SERVICES WE'VE BEEN ASKED TO PROVIDE IN A JUST WAY. 
          ON THE FLIP SIDE, WHEN CITIZENS HAVE DEMANDS OF THE CITY, HAVE DESIRES OF THE CITY, IT IS ALSO ADJUSTING FOR THOSE CITIZENS TO ADEQUATELY FUND THE SERVICES THAT THEY'RE EXPECTING FROM THE CITY. AND SO THROUGHOUT THE PROCESS, WHAT WE'LL BE LOOKING FOR IS HARMONY BETWEEN ALL THESE THINGS. WE'LL BE CLOSER TO THE TRUTH THE MORE THINGS START TO HARMONIZE. OKAY, SO BEING ON PLANNING COMMISSION AND ON STAFF, WE SHOULD RECOGNIZE THESE TWO THINGS AND WE SHOULD KNOW RELATIVELY HOW THEY RELATE. SO ON THE LEFT YOU HAVE A FUTURE LAND USE PLAN MISSOURI CITY. ON THE RIGHT YOU HAVE THE ZONING MAP AND PLANNING CIRCLES. THESE ARE THE COLORED MAPS. SOMEONE TALKS ABOUT A COLORED MAP. IT'S ONE OF THESE TWO. THE ONE ON THE LEFT IS FUTURE LAND USE PLAN IS A POLICY VISIONING DOCUMENT. IT'S VERY CONCEPTUAL. IT'S BROADER THAN ONE. ON THE LEFT IS REGULATORY DOCUMENT. IT'S LEGAL. IT'S GOT TEETH TO IT AND IT'S A BIT MORE SPECIFIC. SO AS PLANNERS OR PEOPLE WHO OPERATE IN THE PLANNING FIELD, WE KNOW HOW THESE TWO THINGS RELATE. WE KNOW HOW THEY WORK TOGETHER. WE KNOW WHAT GOES INTO THEM AND WHAT KIND OF OUTCOMES THEY THEY PRODUCE TOGETHER. HOPEFULLY MOST OF US KNOW WHAT THESE ARE. SO ON THE LEFT YOU HAVE THE ANNUAL BUDGET FOR MISSOURI CITY. THAT IS OUR BEST ESTIMATION OF HOW THE CITY IS GOING TO SPEND MONEY IN THE COMING YEAR. ON THE RIGHT, WE HAVE THE ANNUAL FINANCIAL REPORT, WHICH IS THE ACCOUNTING OF HOW THE CITY ACTUALLY SPENT MONEY IN THE PRECEDING YEAR. THESE TWO THINGS ARE VERY RELATED. UNLESS FINANCE DEPARTMENTS AND MANAGEMENT DEPARTMENTS HAVE A VERY INTIMATE UNDERSTANDING OF HOW THESE THINGS ARE RELATED, AND SOME REALLY AWESOME CITIZENS DO TO WHAT WE DON'T OFTEN REALIZE IS THAT THESE FOUR DOCUMENTS ARE VERY INTIMATELY RELATED. SO WHEN YOU THINK ABOUT COLORED MAPS, WE SHOULD THINK OF THEM MORE THAN JUST THE BUILT ENVIRONMENT OR USES OR PARKING REQUIREMENTS OR LANDSCAPING REQUIREMENTS. THESE ARE FINANCIAL DECISIONS. THERE 
          [00:30:06]
IS AN ANGLE OF THESE COLORED MAPS, WHERE THEY REPRESENT AN INVESTMENT PORTFOLIO THAT THE CITY HAS DECIDED TO PURSUE, AND IT'S A VERY LONG TERM INVESTMENT. WHEN YOU TALK ABOUT FUNDING THE CITY, OUR PRIMARY FUNDERS ARE PROPERTY TAXES AND RETAIL SALES TAXES. MOST OF THE DATA WE'LL LOOK AT TONIGHT IS REGARDING PROPERTY TAXES, WHICH IN TEXAS IS A PRETTY HEAVY HITTER FOR OUR LOCAL MUNICIPALITIES, RETAIL SALES TAXES WE CAN GET INTO. THERE'S A STRONG RELATIONSHIP BETWEEN THE TWO. A LOT OF THE OUTCOMES YOU'LL SEE WITH THE PROPERTY TAXES APPLY EQUALLY TO RETAIL SALES TAX. BUT THE IDEA IS OR ONE OF THE BIG TAKEAWAYS THAT I HOPE WE CAN ALL WALK AWAY WITH IS THAT WHEN YOU THINK ABOUT THESE COLORED MAPS, THINK ABOUT THEM AS A AS AN INVESTMENT PORTFOLIO. AND THE IDEA ISN'T TO MAKE YOUR PORTFOLIO A WINNER ACROSS THE BOARD, IT'S TO MAKE IT A WINNER OVERALL. SO WE'LL START TO SEE LAND USES AND DEVELOPMENT PATTERNS THAT DON'T REALLY MAKE A WHOLE LOT OF MONEY. THEY DON'T GENERATE A LOT OF REVENUE. THAT'S OKAY. THERE IS NO EVIL LAND USE PATTERN. THERE'S JUST SOME THAT DON'T GENERATE AS MUCH REVENUE AND BUSINESS TERMS, YOU MIGHT CALL IT AS LOSS LEADERS. IF THEY PROVIDE SOME OTHER BENEFIT. IT'S OKAY TO HAVE LOSS LEADERS IN YOUR PORTFOLIO, JUST AS LONG AS YOUR PORTFOLIO KNOWS HOW TO MAKE UP FOR THOSE LOSS LEADERS. OKAY, SO WHEN WE TALK ABOUT FINANCIAL ANALYSIS, A FAMILIAR TERM FOR MOST PEOPLE IS RETURN ON INVESTMENT. SO THESE ARE BROADER MAPS. THESE ARE FROM THE CITY OF FORNEY, WHICH IS IN A DIFFERENT METROPLEX TO THE NORTH OF US. 
          AND WHAT YOU'RE LOOKING AT IS A MAP OF THEIR TAX REVENUE FOOTPRINT. SO WHAT IT'S SHOWING IN THE HEIGHT OF THE PARCELS IS THE OVERALL TAX REVENUE GENERATED BY THAT PARCEL. SO THE DARKER THE GREEN THE HIGHER THE REVENUE. OF COURSE THE TALLER THE BAR GETS. AND THERE IS NO RED BECAUSE THERE ARE NONE THAT ARE IN THE NEGATIVE AS FAR AS REVENUE GOES. BUT WHAT YOU'RE LOOKING AT IS JUST REVENUE ON THE LOT. AND A LOT OF TIMES CITIES WILL DO AN ANALYSIS OF REVENUE PER LOT OR VALUE PER LOT. IF YOU LOOK AT APPRAISED VALUE OR ASSESSED VALUE, AND IT'S AN INTERESTING METRIC, YOU CAN TELL SOME GOOD STORIES WITH IT, BUT IT'S NOT THE MOST IT'S NOT THE MOST FUNCTIONAL OR EFFECTIVE METRIC TO USE WHEN YOU'RE TALKING ABOUT FISCAL ANALYSIS FOR CITY. SO A LOT OF CITIES MIGHT DO A STUDY LIKE THIS. AND WHAT YOU'LL SEE IN THESE COLORED MAPS COMING UP IS THAT A CITY MIGHT FOCUS ON THESE RURAL HIGH PERFORMERS AND SAY, WELL, LET'S JUST DO THAT. LET'S DO MORE AND MORE OF THAT. AND WHAT YOU END UP GETTING IS A LOT OF COMMERCIAL AND INDUSTRIAL ZONING THAT NEVER DEVELOPS COMMERCIAL AND INDUSTRIAL. NOW, THIS IS THE SAME CITY, THIS IS PROPERTY TAX REVENUE, BUT IT'S TELLING A VERY DIFFERENT STORY. 
          RIGHT. THESE TWO THINGS USE THE ARROWS I CAN'T OKAY. SO THIS IS TAX REVENUE PER ACRE OKAY. SO TOTAL REVENUE PER LOT. SO JUST THE TOTAL REVENUE OF THE LOT AND THEN REVENUE PER ACRE ON THAT LOT OKAY. SO WHEN WE THINK ABOUT CITY FINANCES, MOST OF OUR SERVICES THAT ARE PAID FOR BY PROPERTY AND RETAIL SALES TAX ARE NOT FUNDED ON A PER CALL OR PER USE BASIS. CITIES OPERATE A BIT MORE LIKE A GYM MEMBERSHIP. IF YOU HAVE A MEMBERSHIP TO A GYM, YOU MIGHT GO AND USE THE TREADMILL AND NOTHING ELSE, BUT YOUR MEMBERSHIP IS PAYING FOR EVERYTHING IN THE GYM, NO MATTER HOW OFTEN YOU USE IT, NO MATTER WHAT YOU USE, YOU'RE PAYING THE SAME AMOUNT EVERY MONTH. SO OUR PROPERTY TAXES TEND TO FUND SERVICES THAT WAY BECAUSE THE SERVICES THEY FUND, WE DON'T WANT THEM TO EVER GO OUT FROM LACK OF FUNDING. SO YOU WANT THE POLICE AND THE FIRE TO ALWAYS PICK UP. YOU WANT THEM TO ALWAYS SHOW UP WHEN THEY'RE NEEDED. SO YOU DON'T WANT TO HAVE A REALLY GOOD YEAR WHERE NO ONE CALLS THE POLICE DEPARTMENT, ONLY FOR THE NEXT YEAR TO NOT HAVE A POLICE DEPARTMENT BECAUSE THEY DIDN'T GENERATE ANY REVENUE. SO PROPERTY TAXES ARE REALLY STABLE WAY TO DO THAT. BUT WHAT THAT MEANS, TOO, IS THAT A LOT OF OUR SERVICES ARE PROVIDED FOR ON A GEOGRAPHIC BASIS. SO WHEN YOU THINK ABOUT YOUR FIRE FIRE RESPONSE, THEY ARE PLANNED AND BUILT BASED ON RESPONSE TIMES. SO A CITY MIGHT ADOPT. I THINK WHEN I WAS IN FORT WORTH, WE HAD A FOUR MINUTE RESPONSE TIME. AND SO WE WOULD BUILD NEW FIRE STATIONS. WE HAD 54 WHEN I WAS THERE. WE HAD 55 AND 56 LINED UP, NOT BECAUSE THE OTHER 54 WERE EXCEEDING THEIR CALL VOLUME OR WERE WORKING TOO MUCH AND COULDN'T RESPOND, IS THAT WE HAD DEVELOPMENT PATTERNS THAT WERE POPPING UP OUTSIDE OF THEIR RESPONSE TIME WINDOWS, AND SO IT WASN'T A MATTER OF VOLUME THAT WAS GETTING THEM. IT WAS THE GEOGRAPHIC FOOTPRINT. AND SO WHEN WE THINK ABOUT COST BURDEN AND THE REVENUE GENERATION TO COVER IT, IT'S MUCH MORE EFFECTIVE FOR A CITY TO THINK ABOUT REVENUE PER ACRE THAN IT IS PER LOT. YES, SIR. I. I HAVE A QUICK QUESTION AND IT'S TO YOU, BUT THE STAFF ALSO LOOKING AT THE FACT THAT WE HAVE VERY LIMITED PARCELS OF LAND FOR 
          [00:35:06]
DEVELOPMENT LEFT, HOW COULD WE TAKE THIS? BECAUSE I KNOW THAT WE'VE, WE USE, WE LOOK TO THE DEVELOPER TO COME WITH DEMOGRAPHIC INFORMATION AND ALL OF THAT. BUT HOW COULD WE UTILIZE THIS? WE DON'T MEAN TO PUT YOU ON THE SPOT. IT'S JUST NO, I THINK THE PRESENTATION IS GOING TO BE WE'LL GET THERE. OKAY. WE'RE GOING TO WE'RE GOING TO CIRCLE AROUND. SO WE'RE STARTING BIG. WE'LL CIRCLE DOWN AND DOWN AND DOWN. SO IF YOU IF YOU HAVE A QUESTION I'M PROBABLY GOING TO GET THERE AT SOME POINT OR I'LL GET TO I'LL CIRCLE BACK AROUND AND IT'LL SPARK IT IN YOUR MIND AGAIN. SO YES SIR. THAT IS A TAX REVENUE THAT ANY PROPERTY TAX AND SALES TAX. THIS IS DESCRIBING THE VISUALS ONLY DESCRIBING PROPERTY TAX REVENUE. WE'LL TALK ABOUT RETAIL SALES TAX. BUT THIS IS PROPERTY TAX. AND SO WHEN IT SAYS TAX REVENUE THAT IS INCORPORATING EXEMPTIONS FREEZES CEILINGS ABATEMENTS ALL THAT STUFF'S BEEN INCORPORATED. SO SOMETIMES YOU'LL SEE AN APPRAISED VALUE PER ACRE MAP. AND IT'S A LOT MORE FILLED IN. BUT YOU'LL NOTICE GAPS IN HERE. 
          THOSE MIGHT BE SCHOOLS, HOSPITALS, CHURCHES, INDUSTRIAL BUILDINGS THAT HAVE TAX ABATEMENTS, THINGS LIKE THAT. SO ON THE ROI SIDE, WHAT YOU WANT TO END UP WITH IS YOUR REVENUE DATA IF YOU GOT TO INCORPORATE COSTS. SO IN THIS PARTICULAR PROJECT. FOR PAWNEE, WE ALLOCATED COSTS BACK OUT BASED ON THEIR BUDGET. WE LAID IT OVER WITH THE REVENUE. AND WHAT YOU SEE NOW IS THAT SOME PROPERTIES OPERATE AT A LOSS, SOME OPERATE AT A WIN, SOME AT A SIGNIFICANT WIN. SO WHAT YOU SEE HERE IS PAWNEE'S TINY HISTORIC DOWNTOWN. AND WE'LL GET INTO WHY THAT PERFORMS SO WELL. BUT WHAT'S ALSO INTERESTING TO NOTE IS THAT SOME OF THESE RESIDENTIAL USES STILL STILL PERFORM AT A, AT A GOOD AT A GOOD WINNING PACE. AND SOME OF THESE COMMERCIAL INDUSTRIAL USES DON'T ANYMORE. WHEN YOU THINK ABOUT ROI IN CITY FINANCING SOMETHING WE ALSO SOMETIMES PROBABLY NOT THE PEOPLE IN THIS ROOM LOSE SIGHT OF IS THAT THE CITIES ARE NOT WELL, THEY'RE HARDLY EVER FULLY FUNDED, SO THERE'S ALWAYS SOMETHING WE'RE KICKING THE CAN ON. OFTENTIMES THE BIGGEST ITEM IS ROAD MAINTENANCE. WE DO NOT HAVE A MAINTENANCE AND OPERATIONS BUDGET THAT PROVIDES ALL OF THE FUNDS WE WOULD EVER NEED AS A CITY TO MAINTAIN ALL OF THE ROADS AS WE NEED THEM. SO THOSE TYPICALLY GO INTO CAPITAL IMPROVEMENT PLANS. WE TAKE ON DEBT TO DO THEM, TO BUY THEM IN BULK. SO THERE'S ALWAYS UNFUNDED MAINTENANCE COSTS THAT GO INTO THIS. FOR THIS PARTICULAR PROJECT, WE LAY THOSE ON TOP SO EVERYTHING DROPS AGAIN. BUT YOU SEE THERE ARE STILL WINNERS. AND SO THE IDEA TO TAKE HOME HERE IS THAT PORTFOLIO IDEA. PAWNEE HAS A PORTFOLIO RIGHT NOW THAT IF YOU LOOK AT THE SCREEN, OPERATES AT A -$6 MILLION A YEAR. IF THEY WANTED TO INCORPORATE THOSE ADDITIONAL COSTS INTO THEIR BUDGET. THEY WERE GOING THROUGH A COMP PLAN PROCESS. SO THEY DID A COUPLE OF SCENARIOS WHERE THEY BUILT OUT ACCORDING TO THEIR POPULATION GROWTH. THIS PARTICULAR SCENARIO PUT THEM BACK IN THE BLACK AT 3.3 MILLION A YEAR. THIS SCENARIO INCORPORATED SOME OF THEIR DENSER RESIDENTIAL DEVELOPMENT PATTERNS AND PLACES THAT WE'RE CALLING FOR LOWER DENSITY, LOWER DENSITY, MORE SPREAD OUT DEVELOPMENT PATTERNS, AND A FEW MIXED USE AREAS THAT WOULD REPLACE SOME TRADITIONAL COMMERCIAL, COMMERCIAL, SUBURBAN COMMERCIAL STYLE AREAS. SO IF IT DEVELOPS OUT THAT WAY, AS OPPOSED TO THEIR TREND, IT'S AN ADDITIONAL $3 MILLION A YEAR IN REVENUE. NOW, THAT'S A SCENARIO. 
          IT'S A CONCEPT TO THINK ABOUT. IT IMPACTED THEIR DISCUSSION. IT IMPACTED THE RELATIONSHIP THEY HAD WITH THEIR CITIZENS AND THE PROCESS, AND THEY ENDED UP GOING FOR DEVELOPMENT PATTERN THAT HAD A BRIGHTER FINANCIAL FUTURE. SOME OF THE DISCUSSION ABOUT THIS IS MANY CITIZENS DO NOT WANT TO PAY MORE IN TAXES. THEY WOULD RATHER PAY LESS. RIGHT? SO BEYOND STATE REGULATIONS, TWO THINGS IMPACT YOUR PROPERTY TAXES, YOUR BILL VALUE THE RATE. CITIES OFTEN DO NOT HAVE MUCH POWER WHEN IT COMES TO THE VALUE. OKAY. SO WE CAN WE CAN PLAY WITH THE RATE A LITTLE BIT WITHIN STATE GUIDELINES. BUT IT'S A HARD NUMBER TO CHANGE. AND FOR MOST CITIES THE RATE IS A VERY EMOTIONAL NUMBER. IT'S NOT A VERY SCIENTIFIC NUMBER. SO YOU TEND TO INHERIT A PROPERTY TAX RATE. WHO KNOWS WHERE IT CAME FROM. IT MIGHT BE HALF THE RATE THAT YOUR NEIGHBORING CITY HAS. AND WE OFTEN DON'T KNOW WHY. IT COULD BE DOUBLE THE RATE YOUR NEIGHBORING CITY HAS, AND WE OFTEN DON'T KNOW WHY, BUT THE IDEA IS TO MAKE THOSE DISCUSSIONS A BIT MORE PRAGMATIC AND LOGISTICAL. AND SO A GOOD WAY TO DO THAT IS TO INTRODUCE THE DATA IN A PUBLIC SETTING. SO THAT'S PHOURNI THAT WAS A FULL RANGE OF A PROJECT WE DID FOR THEM. ANY SORT OF FISCAL ANALYSIS, NO MATTER HOW FAR YOU TAKE IT, YOU'RE GOING TO WANT TO GET AS FAR INTO THE DETAILS IN THE DATA YOU DO HAVE. SO WE'RE GOING TO LOOK AT SOME MISSOURI CITY DATA BEFORE I DO THAT. ANY CONCEPTUAL. QUESTIONS? HOW DOES THE HOW DOES THAT MATCH A VACANT PROPERTY IS GOING TO BE IT'S 
          [00:40:08]
GOING TO SHOW UP ON THE MAP. SO WE'LL BE ABLE TO LOOK AT IT. IT DOESN'T PERFORM WELL I UNDERSTAND THAT, BUT IT'S A 4 MILLION SAMPLE RIGHT. IS THERE IS ANY OF THAT. WHY? IS IT BECAUSE THERE'S DEVELOPED POOR PERFORMANCE PROPERTIES OR FINANCIAL STANDPOINT WITH UNDEVELOPED. IS THAT STOOD OUT IN THE IN THE IN THE GRAPHIC IN A. GOOD TO HAVE OKAY. SO IN YOU'LL SEE IT BETTER IN THE MISSOURI CITY OKAY. SO LET ME GET THERE AND I'LL CIRCLE BACK AROUND TO THAT QUESTION. OH YES SIR. AND THIS SLIDE ALMOST ANSWERS IT I KNOW POPULATION SIZE. IT'S NOT THE BEST COMPARISON BETWEEN PAWNEE. IF I FORNACE SMALL. YEAH. BUT I'M JUST CURIOUS IN TERMS OF LAND SIZE, BECAUSE I FIGURED THERE WAS A REASON YOU SHOWED IT BEFORE OURS. BECAUSE WHAT I'M GETTING AT IS HOW HOW DO WE COMPARE RELATIVE TO THEM WITH THE MODELING IN TERMS OF LENGTH, I THINK WE'RE AT ALMOST 9% LESS FOR BUILD OUT. SO I'M JUST CURIOUS IF THAT WAS CONSIDERED PAWNEE. WELL, IN COMPARISON, WHAT I WAS MOSTLY WORKING WITH IS I HAD DATA SETS FROM MILWAUKEE, FROM FORT WORTH, AND FROM SAN ANGELO AND FROM PAWNEE. 
          AND SO IN WILLMAR, WHICH IS EVEN SMALLER. SO PAWNEE WAS THE CLOSEST, AND IT WAS IN TEXAS. SO I USED PAWNEE. PAWNEE HAS A BIT MORE AVAILABLE LAND AROUND IT. IT'S NOT QUITE AS ENCIRCLED AS MISSOURI CITY IS BECOMING. SO THERE'S SOME DIFFERENT DYNAMICS THERE. IT'S ALSO DOESN'T HAVE MISSOURI CITY HAS A MUCH BIGGER FOOTPRINT OF OLDER DEVELOPMENT THAN PAWNEE. DOES ITS AVERAGE BUILD YEARS YOUNGER THAN MISSOURI CITY. SO MISSOURI CITY IS GOING TO BE LOOKING AT A LOT MORE. IT'S GOING TO BE HAVING A LOT MORE REDEVELOPMENT DISCUSSIONS THAN PAWNEE IS GOING TO HAVE A MIX OF, BOTH BECAUSE THEY THEY GREW AND THEN THEY PAUSED FOR A LONG TIME, AND NOW THEY'RE GROWING AGAIN. SO THEY'VE GOT PLACES THEY NEED TO REDEVELOP, AND THEY'VE GOT A LOT OF NEW DEVELOPMENT PRESSURE COMING IN. SO THIS IS TAX REVENUE PER LOT. SO TOTAL REVENUE PER LOT. IT'S TEN CATEGORIES. THE DARK TALL OBJECTS ARE HIGHER VALUE. THE SHORTER ONES ARE LOWER VALUE. YOU GUYS CAN PROBABLY RECOGNIZE SOME OF YOUR COMMERCIAL CENTERS AND SOME OF THE INDUSTRIAL COMMERCIAL TO THE NORTH. AND THEN YOUR RESIDENTIAL PATTERNS. 
          THIS IS THE REVENUE PER ACRE. SO AGAIN VERY DRAMATICALLY, DRAMATICALLY DIFFERENT STORY. 
          THERE ARE SOME INTERESTING WELL MISSOURI CITY I COULD NOT SEE YOU ON THE AERIAL A HISTORIC DOWNTOWN FOOTPRINT, BUT THERE ARE SOME INTERESTING RESIDENTIAL DEVELOPMENT PATTERNS THAT ACTUALLY PERFORM VERY, VERY WELL, NOT ONLY JUST IN MISSOURI CITY, BUT JUST IN GENERAL ACROSS THE BOARD. SO MOVING FORWARD AND ALL THE STUDIES I'VE DONE, THERE'S AN INTERESTING NUMBER, AROUND $6,500 AN ACRE TENDS TO BE RIGHT AROUND WHERE CITIES BREAK EVEN. POINT IS, I DON'T KNOW WHY THAT IS, BUT THAT'S WHEN WE'VE DONE THE STUDIES THAT HAVE THE FULL ROI, BETWEEN 6000 AND $7000 AN ACRE HAS BEEN ABOUT WHERE THE CITY'S BREAK EVEN POINTS HAVE FALLEN. I'VE NEVER LOOKED INTO THE UNDERLYING REASONS WHY THAT MIGHT BE. OUR PROPERTY TAX SYSTEM IS RELATIVELY STRUCTURED CONSISTENTLY, SO IT MAKES SENSE THAT THERE MIGHT BE CONSISTENT PATTERNS LIKE THAT, BUT JUST KEEP THAT 6000 TO $7000 IN MIND AS WE GET INTO MISSOURI CITY DATA. SO THIS IS THE SAME DATA, BUT IT'S COLOR CODED DIFFERENTLY. SO THIS IS THE VALUE PER LOT COLOR CODED BY LAND USES. SO YOU CAN SEE YOUR COMMERCIAL IN RED YOUR INDUSTRIAL AND PURPLE. THOSE ORANGE ONES ARE APARTMENTS. SO APARTMENTS HISTORICALLY DO VERY WELL FINANCIALLY. THEY'RE JUST NOT THE EASIEST THING TO GET ON THE GROUND. PUBLICLY. SO THIS IS THE REVENUE PER ACRE. WHAT'S GREAT ABOUT THESE MAPS IS WHEN YOU SHIFT FROM THIS TO THIS, IT REALLY EVENS THE PLAYING FIELD BETWEEN COMMERCIAL AND RESIDENTIAL LAND USES, WHICH IS REALLY GOOD FOR THESE KIND OF DISCUSSIONS, BECAUSE THERE'S OFTEN A DRIVE TO GO FOR RETAIL SALES TAX AND COMMERCIAL DEVELOPMENT, WHICH IS TOTALLY UNDERSTANDABLE. COMMERCIAL DEVELOPMENT IS TYPICALLY A HIGHER VALUE DEVELOPMENT, EVEN IF IT ISN'T PERFORMED AT THE REVENUE PER ACRE, BUT YOU ALSO GET YOUR RETAIL SALES TAXES FROM IT. BUT THERE IS A AN UNDERLYING CONUNDRUM IN THAT YOU CANNOT FILL YOUR COMMERCIAL PROPERTIES UNLESS YOU HAVE THE ROOFTOPS. SO IF YOU'VE EVER WATCHED A CITY GROW OUT OVER TIME, IF YOU ALL LIVED HERE A LONG TIME, YOU'VE PROBABLY SEEN THIS HAPPEN IN MISSOURI CITY, WHERE A NEIGHBORHOOD GOES IN. THERE'S NOTHING OUT THERE. A LITTLE BIT MORE OF A NEIGHBORHOOD GOES IN. YOU GET A IT'S THE FIRST THINGS YOU FIRST THINGS YOU USED TO GET WERE LIKE A BLOCKBUSTER AND A GAS STATION. NOW YOU GET A GAS STATION AND A DONUT SHOP AND MAYBE A DRY CLEANER. SO THAT'S THE FIRST WAVE. THEY HAVE A LOW ROOFTOP THRESHOLD. MORE ROOFTOP TOPS COME IN. THE NEXT THING YOU MIGHT GET ARE SOME. LIKE THE 
          [00:45:07]
FIRST FAST FOOD RESTAURANTS TO COME IN POPEYES, DAIRY QUEEN. SOMETIMES MCDONALD'S. STARBUCKS NOW IS GETTING EARLIER AND EARLIER, BUT TYPICALLY THE THINGS ON THE BACK END ARE YOUR MAJOR RETAIL STORES IN YOUR GROCERY STORES. SO THERE'S THIS COMMON TREND AND DEVELOPMENT PATTERN. THOSE COMMERCIAL BUSINESSES ONLY RESPOND TO DEMAND IF YOU DO NOT HAVE THE ROOFTOPS. IT DOES NOT MATTER WHAT YOUR ECONOMIC DEVELOPMENT DEPARTMENT DOES. THEY'RE NOT GOING TO BE ABLE TO SUSTAIN A BUSINESS. WHAT I'VE SEEN IN RETAIL SUPERMARKET SIDE IS THOSE LARGER RETAILERS TYPICALLY BUY THAT PROPERTY FIVE, TEN, EVEN IN MANY INSTANCES 15 YEARS PRIOR TO ANY OTHER DEVELOPMENT IN THAT AREA. AND THEY JUST SIT ON IT. YEAH, THEY'RE REALLY GOOD AT WHAT THEY DO. WE HAD WHEN I WORKED FOR THE CITY OF WACO, WE HAD A OUR ONLY GROCERY STORE WAS H-E-B, WHICH I'M FINE WITH, BUT WE DIDN'T HAVE ALBERTSONS. WE DIDN'T WE DIDN'T HAVE ANYBODY ELSE. H-E-B OWNED 2 OR 3 PARCELS AROUND TOWN THAT WERE VACANT THAT THEY'D OWNED FOR YEARS. WE WOULD EVERY SIX MONTHS OR SO, WE'D GET A ZONING VERIFICATION LETTER FROM ALBERTSONS OR KROGER OR ONE OF THE OTHER BIG BOYS, AND WITHOUT FAIL, WITHIN SIX WEEKS WE'D GET AN APPLICATION FOR A PREDEVELOPMENT MEETING FROM H-E-B ON ONE OF THE SITES. ALBERTSONS OR KROGER WOULD CATCH WIND OF IT. THEY'D LET THEIR PROJECT GO. THE APPLICATION WE GOT FROM H-E-B WOULD NEVER GO ANYWHERE. IT WAS PURELY A DEFENSIVE MECHANISM, WHICH I THOUGHT WAS BRILLIANT, BUT WE ALSO WANTED ANOTHER GROCERY STORE. SO WHEN THE REVENUE PER ACRE, YOU CAN DO LAND USE ANALYSIS WITH YOUR REVENUE PER ACRE, WHICH IS A GOOD THING TO DO. WE'LL GET INTO THAT. BUT THERE'S. YES, SIR. ANY QUESTIONS ON THIS THAT THIS MAP RIGHT HERE, THE SINGLE FAMILY TRUST IS AT THE BOTTOM OF THE PAGE. YES. WHAT WAS THAT TO BE SO MUCH LOWER TAX REVENUE. WE'LL GET INTO A LOT MORE DETAILS. BUT IT'S BASICALLY THE VALUE. THE WAY THE APPRAISAL SYSTEM WORKS IS THAT THE VALUE THAT'S GENERATING YOUR PROPERTY TAXES, THE MOST VALUE IS COMING FROM SPACE BUILT FOR PEOPLE. SO THE LARGER YOUR LOT GETS, THE CHEAPER PER SQUARE FOOT THE DIRT BECOMES, THE LARGER THE HOUSE GETS, THE CHEAPER PER SQUARE FOOT, THE HOUSE BECOMES, THE MORE DILUTED THE REVENUE POOL COMES. YOUR LOT MIGHT GO FROM A FIFTH ACRE TO TEN ACRES, WHICH IS AN EXPONENTIAL INCREASE IN ACREAGE SIZE. BUT HOUSES. YOU'RE RARELY GOING TO SEE A HOUSE BIGGER THAN 4000FT■!S. YOU'RE JT NOT. IT DOESN'T MATTER HOW BIG THE LOT GETS, SO THERE'S KIND OF A CAP. THERE'S A DIMINISHING RETURN ON LARGENESS THAT A LOT OF THESE ARE SOME OF TAKE THE PROPERTIES OVER LARGER ACREAGE. THERE'S ALSO A DYNAMIC WHEN YOU GET PAST SOME OF THOSE AG EXEMPTION THRESHOLDS, THE AG EXEMPTIONS WILL ALSO CUT IN BECAUSE THEY MIGHT HAVE A HORSE THEY MIGHT HAVE SOMETHING. RIGHT. SO THERE'S A NUMBER OF FACTORS THAT ARE LEADING INTO THOSE NOT BEING AS OH THIS IS THIS IS 22. THIS WAS THE 2023 DATA THAT FED INTO THE 2324 FISCAL YEAR. SO WE HAD A YEAH, WE'LL HAVE A NEWER DATA SET PRETTY SOON. WE'RE GOING TO REVISIT THIS. I'M NOT GOING TO I'VE GOT A CHART THAT SHOWS THIS. I'M NOT GOING TO SPEND TOO MUCH TIME ON THIS. BUT WHAT WE'RE GOING TO SEE IN THE CHART IS THESE REVENUE PER ACRE NUMBERS. IF YOU JUST LOOK AT LAND USE, YOU COULD ARRIVE AT A PLACE WHERE YOU SAY, WELL, WE DON'T WANT APARTMENTS AND WE DON'T REALLY WANT DUPLEXES AND CONDOS. SO OUR NEXT BEST BET ARE THESE COMMERCIAL AND OFFICE. AND YOU CAN DO THAT IN A LOT OF CITIES DO THAT. IT'S NOT GOING TO WORK OUT VERY WELL. AND YOU'RE NOT YOU'RE NOT GOING FAR ENOUGH FOR THE SAKE OF BEING GOOD STEWARDS AND MANAGING RESOURCES. WELL WHEN YOU GET FURTHER INTO THE DATA. SO THIS IS THE SAME DATA, BUT IT'S BROKEN DOWN INTO MORE SPECIFICS FOR SINGLE FAMILY AND COMMERCIAL. SO SINGLE FAMILY AND COMMERCIAL ARE BROKEN DOWN INTO LOT SIZE SEGMENTS. SO LOTS SMALLER THAN 5000FT■!S. PRODUCE $8,300 AN ACRE. THAT REVENUE PER ACRE DROPS THE HIGHER THE LOT SIZE GETS. THE SAME TREND EXISTS FOR COMMERCIAL. SO IF YOU'RE JUST LOOKING AT LAND USE, YOU GET TWO DISCOMBOBULATING STORIES. WHEN YOU DIG INTO THE DETAILS, YOU CAN SEE PATTERNS AND TRENDS. WHEN YOU'RE DOING DATA ANALYSIS, THAT'S WHAT YOU'RE LOOKING FOR. SO WHAT YOU'RE SEEING IN THIS CHART ARE THOSE NUMBERS FOR SINGLE FAMILY, WHAT YOU HAVE IN THE ORANGE BARS ARE THE AVERAGE. THE AVERAGE, THE AVERAGE SIZE OF THE LOT. AND THEN YOU HAVE THOSE LOT SIZE 
          [00:50:04]
CATEGORIES. AND WHAT YOU SEE IN THE LINE IS YOUR REVENUE PER ACRE. SO THERE'S AN INVERSE RELATIONSHIP BETWEEN YOUR LOT SIZE AND YOUR REVENUE PER ACRE. THE BIGGER YOUR LOT SIZE GETS, THE SMALLER YOUR REVENUE PER ACRE IS GOING TO GET. YEAH. BUT ONE QUESTION I NEED TO ASK YOU. 
          WHAT ABOUT THE RETAIL PORTION OF IT. SO YOU'VE GOT 1000 HOMES. THE WHICH PORTION. SAY THAT AGAIN. YEAH THE RETAIL END OF IT. YOU KNOW, RESTAURANTS, STORES, ACADEMIES OF ALL THAT REVENUE TO FOR THE CITY ALSO. CORRECT. YES. AND SO WHEN YOU THINK ABOUT THOSE RETAIL PORTIONS SO THIS IS COMMERCIAL. THIS IS THE SAME DATA. BUT FOR COMMERCIAL IT'S GOT THE SAME TREND. THE BIGGER THE LOT SIZE GETS THE LOWER YOUR REVENUE PER ACRE GETS. NOW WITH RETAIL SALES TAX, IF YOU GO BACK TO THE RESIDENTIAL, WHEN YOU STAY ON THE LEFT SIDE OF THIS CHART AND YOU HAVE REALLY SMALL LOTS SIMILAR TO THE FIRE STATION EXAMPLE EARLIER, STARBUCKS HAVE CRITERIA THAT THEY MEET TO COME IN BEFORE THEY BUILD. IT'S A IT'S A DAILY TRAFFIC COUNT IS ONE OF THEM. AND A LACK OF COMPETITION WITHIN A CERTAIN DRIVE TIME. SO IF YOU HAVE. 
          HOUSEHOLDS DEVELOPED AT A LOW ENOUGH DENSITY WHERE THEY CANNOT GENERATE THE TRAFFIC DEMAND STARBUCKS IS LOOKING FOR, OR THAT THE SERVICE AREA IS SO SPREAD OUT THAT A COFFEE SHOP FIVE MILES AWAY IS ACTUALLY OVERLAPPING. THE STARBUCKS ISN'T GOING TO COME IN. WELL, WE HAD THE SAME TROUBLE TOO, WITH THE COMMERCIAL DEVELOPMENT THAT HAPPENED RIGHT HERE BETWEEN THE BELTWAY EIGHT AND 90. ALL THOSE DEVELOPMENTS, YOU KNOW, THERE IS NO TRAFFIC OTHER THAN DURING THE WEEK. WE TALKED ABOUT THAT EARLIER THIS YEAR, LAST YEAR, LAST MOMENTS, THAT LAST MEETINGS THAT WE HAD WERE, YOU KNOW, THE CHURCHES GENERATED ONLY ON SUNDAYS OR SATURDAYS, WHEREAS THE COMMERCIAL. STORAGE OR BUILDING. THAT WERE THERE, THAT'S ONLY THEY GENERATE SO MUCH MONEY THROUGHOUT THE THROUGHOUT THE YEAR. CORRECT. THE COMMERCIAL BUSINESSES, THE, THE, THE THAT DEVELOPMENT THAT'S OUT HERE ON THE BELTWAY EIGHT AND, AND US 90. WHAT'S THAT. THE INDUSTRIAL PARKS THAT ARE THERE. CORRECT. CORRECT. SO. OKAY, THAT TOOK AWAY A LOT OF ACREAGE IN DEVELOPMENT, A LOT OF ACREAGE. IT'S A LOT OF ACREAGE WITH NOT. WELL, WE'LL SEE BECAUSE WE'LL ZOOM IN ON A FEW OF THESE AREAS. AND I THINK I ZOOMED IN ON YOUR COMMERCIAL INDUSTRIAL AREA TO THE NORTH OF THAT DOES A LOT OF DENSITY TRAFFIC. NOW, AS FAR AS HOMEOWNERS, THAT'S OKAY. 
          REVENUE. WE'LL SEE THE REVENUE. I DON'T KNOW ABOUT TRAFFIC GENERATION RIGHT HERE. I MEAN, ON THE LAST 2 OR 3 SLIDES, YOU SAID INDUSTRIAL DEVELOPMENT, SMALL COMMERCIAL. MY LAST TWO SLIDES THAT YOU SHOWED OKAY. ONE MORE. THERE YOU GO. COMMERCIAL AND OFFICES, INDUSTRIAL DEVELOPMENT BY BY. AVERAGE TAX REVENUE PER ACRE. YEAH. SO THE INDUSTRIAL PERFORMS AT 1900 AN ACRE, WHICH IS PRETTY LOW. AND IT DOESN'T. THERE WERE ONLY ABOUT I BROKE OUT THE COMMERCIAL AND OFFICE IN THE SINGLE FAMILY BECAUSE YOU HAVE LOTS OF THEM. THE COMMERCIAL, THE INDUSTRIAL. 
          I THINK YOU HAD 12 THAT FOR TAXING PURPOSES ARE CLASSIFIED AS INDUSTRIAL UNDER ZONING. YOU MIGHT HAVE A LOT MORE INDUSTRIAL, BUT FOR PROPERTY TAXES, A LOT OF WHAT YOU THINK OF IN YOUR COMMERCIAL, YOUR IN YOUR INDUSTRIAL AREA IS CLASSIFIED COMMERCIAL. SO THERE'S ONLY ABOUT 12 INDUSTRIAL INDUSTRIAL PROPERTIES ACCORDING TO PROPERTY TAX CLASSIFICATION SYSTEMS. OKAY. SO A LOT OF LIKE CONTRACTORS OFFICES THEN ZONING CODES ARE GOING TO BE INDUSTRIAL. THOSE ARE GOING TO BE CLASSIFIED AS A COMMERCIAL PROPERTY AND FOR PROPERTY TAX PURPOSES. LET'S SEE. SO I MENTIONED EARLIER THAT A LOT OF THE VALUE COMES FROM SPACE BUILT FOR PEOPLE. AND SO IT'S NOT NECESSARILY ABOUT SPACE. WE SAW THE INVERSE RELATIONSHIP BETWEEN LOT SIZE AND REVENUE PER ACRE, WHICH YOU SEE VERY CLOSE RELATIONSHIP BETWEEN REVENUE PER ACRE AND IN THIS CASE FLOOR AREA RATIO. SO THIS THE BARS IN THIS CASE ARE REPRESENTING THE AVERAGE FLOOR AREA RATIO FOR EACH OF THESE LOT SIZE SEGMENTS. SO YOU CAN SEE AS THE LOT GETS SMALLER YOUR FLOOR AREA RATIO GOES UP. AND IT TENDS TO MIMIC THE PATTERNS OF THE REVENUE PER ACRE. THIS IS TRUE FOR COMMERCIAL AS WELL. AND WHAT YOU'RE SEEING HERE IS THAT THE WAY THE APPRAISAL SYSTEM WORKS IS THAT IT VALUES SMALLER SPACES MORE THAN BIGGER SPACES, AND A 
          [00:55:05]
VALUE SPACE FOR PEOPLE MORE THAN SPACE FOR PARKING, MORE THAN SPACE FOR DRAINAGE, MORE THAN SPACE FOR LANDSCAPING. OKAY, SO THE DENSER FOOTPRINT YOU CAN HAVE OF STRUCTURE AND BUILT ENVIRONMENT AIMED AT PEOPLE OCCUPYING IT, THE HIGHER THE DENSITY OF PROPERTY TAX REVENUE YOU'RE GOING TO GET. AND THAT'S JUST THAT'S ACROSS THE BOARD. THAT'S EVERY PROJECT I'VE EVER DONE, EVERY MAP I'VE EVER LOOKED AT HAS THAT SAME TREND. THANK YOU. YES, SIR. ARE YOU GOING TO BRING IN SALES TAX REVENUE FOR YOUR COMPANY? I DON'T HAVE SALES TAX NUMBERS, BUT WE CAN TALK SO WE CAN PAUSE RIGHT NOW AND TALK ABOUT SALES TAX. SO WHEN YOU LOOK AT YOUR YOUR YOUR MAPS RIGHT. SO THE ONE THAT KIND OF STANDS OUT IS THE, YOU KNOW, THE AMAZON WAREHOUSE ITSELF IS PROBABLY REALLY LOW ON THE BIG. IT'S PROBABLY NOT. IF YOU LOOK AT THE REVENUE THAT'S IN SALES TAX. BUT WHAT DOES THAT NOT AS IF THAT'S SOMETHING THAT WE THAT IF THAT'S WELL THAT ONE MIGHT ACTUALLY DO. SO IS THAT NUMBER THREE. RIGHT. OKAY. SO IT'S NOT DOING AS BAD ESPECIALLY AS LIKE INDUSTRIAL WAREHOUSES. BECAUSE WHAT THIS INCORPORATES IS ALSO PERSONAL BUSINESS PROPERTY. 
          AMAZON WAREHOUSES TEND TO HAVE A VERY LARGE INVENTORY. SO THEY WILL PERFORM BETTER THAN SOME OTHER TYPES OF STORAGE FACILITIES. THE RETAIL SALES TAX DATA IS HEAVILY GUARDED BY THE STATE. SO THEY'RE NOT GOING TO LET ME KNOW HOW MUCH RETAIL SALES TAX WENT THROUGH THAT PARTICULAR WAREHOUSE, BECAUSE IT'S AN UNFAIR DATA POINT FOR AMAZON'S COMPETITORS TO KNOW. I THINK WE CAN MAKE SOME INFERENCES, THOUGH, JUST BASED ON HOW WE'RE SET UP AS A CITY. 
          AND I'M HOPING THEY'RE ON ADDITIONAL SLIDES, BECAUSE YOU BROUGHT UP WHAT WAS IN MY HEAD AROUND REDEVELOPMENT. IF I'M LOOKING AT THIS MAP, I SEE WE ARE OVERINDEX WITH HOW MUCH WE'RE RELYING ON PROPERTY TAX TO HELP RUN THIS CITY. WELL, SO YOUR PROPERTY TAX RATE FOR THIS YEAR FOR THIS DATA SET WAS 0.570825, I THINK. IS IT STILL THAT DOES IT CHANGE? OKAY. WELL IT'S PROBABLY GOING TO BE CLOSE. THAT'S A PRETTY MID-RANGE TAX RATE. I THINK YOU'RE SAYING OKAY FOR FROM THE CITIES I'VE WORKED IN, THAT'S A VERY MID-RANGE TAX RATE. IT'S ABOUT AND I'M WITH THAT AND I'M GLAD I THINK WE'RE DOING RIGHT. BUT MY POINT IS IF YOU GO BACK, YOU DON'T HAVE TO GO BACK NOW. BUT WITH FORNEY AND, YOU KNOW, YOU PUT IT IN MY HEAD. SO THAT'S WHY I'M USING IT AS AN EXAMPLE. THEY HAD LAND THAT WE DON'T HAVE, BUT THERE'S JUST SO MANY PEOPLE HERE AND NOT ENOUGH BUSINESSES TO KIND OF BALANCE OUT THAT REVENUE, WHERE IF YOU DID THAT FOR ANY EXAMPLE WHERE THEY WERE -3 MILLION, I DON'T I'M A LITTLE BIT SCARED TO SEE WHAT OURS IS. I MEAN, I SAW THE NUMBER ONLINE, BUT I WON'T BRING IT UP NOW. BUT I THINK AS COMMISSIONERS WE'RE TRYING TO FIND WAYS TO EASE TAX BURDEN AND ALSO ATTRACT NEW BUSINESSES. AND IN TERMS OF LAND USE, THERE'S NOT A WHOLE LOT OF PLACES FOR US TO DO THAT IN NEW SPACES. SO I ONE OF THE THING THAT I'M LOOKING FOR IS HOW WE CAN PUSH REDEVELOPMENT OR FIND CREATIVE WAYS THAT ISN'T A HINDRANCE ON LAND BECAUSE WE DON'T HAVE A LOT, BUT THAT CAN HELP US BALANCE THIS OUT. DOES THAT MAKE SENSE? SO OUR LAST SECTION WE'RE GOING TO GET TO IS IMPLEMENTATION. SO WHAT DO YOU ACTUALLY DO WITH ANY OF THIS STUFF. AND WE'LL GO OVER SOME EXAMPLES. SO WHEN YOU THINK ABOUT A GOOD METRIC TO LOOK AT WE'VE TALKED ABOUT REVENUE PER ACRE. FLOOR AREA RATIO IS THE OTHER BIG ONE. AND YOU'LL HEAR DEVELOPERS WILL TALK ABOUT THIS IN AN INDIRECT WAY. THEY OFTEN DON'T USE FOURIER RATIO, BUT THEY GET ANNOYED AT ALL THE ZONING REGULATIONS THAT CUT INTO THEIR BUILDABLE FOOTPRINT. RIGHT. SO THAT BUILDABLE FOOTPRINT IS YOUR FOURIER RATIO. 
          SO SETBACKS EAT INTO IT, LANDSCAPING EATS INTO IT, DRAINAGE FACILITIES. PARKING IS A HUGE ONE THAT EATS INTO IT. SO IN THE IMPLEMENTATION IMPLEMENTATION DISCUSSION WE'LL GO OVER SOME EXAMPLES OF WHAT CITIES HAVE DONE TO KIND OF ADDRESS THAT. THE LAST THING I'LL MENTION HERE IN THESE CHARTS IS THERE WEREN'T ENOUGH APARTMENT PROPERTIES IN MISSOURI CITY TO DO ONE OF THESE FOR APARTMENTS, BUT APARTMENTS. WELL, YOU HAD LIKE SIX, I THINK 6 OR 7 APARTMENT COMPLEXES ON THE GROUND. I GRABBED ONE IN A LITTLE BIT THAT YOU'LL SEE. BUT I ALSO, I THINK I GRABBED ONE THAT'S ACTUALLY IN STAFFORD. APARTMENT COMPLEXES HAVE A LITTLE BIT OF A HUMP AND IT COMES BACK DOWN. AND THE HISTORICALLY APARTMENT COMPLEXES YOU HAD LIKE 70S, 80S AND 90S, YOU HAD GARDEN STYLE APARTMENT COMPLEXES. THEY WERE VERY SPREAD OUT, TWO STORY, MAYBE LOTS OF SURFACE PARKING. AND THE LAST 10 TO 15 YEARS, YOU'VE HAD A TON OF 
          [01:00:01]
WHAT PEOPLE CALL TEXAS DONUTS, THE REAL URBAN APARTMENTS WITH THE PARKING GARAGE IN THE MIDDLE AND THE APARTMENTS ACTUALLY AROUND THE EDGES. THOSE ARE HISTORIC OR TYPICALLY ON SMALLER LOTS THAN THE GARDEN STYLE APARTMENTS, BUT THEY PERFORM MUCH BETTER. SO YOU'LL SEE A BUMP IN THE REVENUE PER ACRE APARTMENT LINE. AND THAT'S WHAT THOSE TEXAS DONUTS ARE BUMPING UP. THOSE MID LOT SIZE DEVELOPMENT PACKAGE. OFTENTIMES THE GARDEN STYLE APARTMENTS ACTUALLY DON'T PERFORM AS WELL AS DENSE SINGLE FAMILY DETACHED HOMES. OKAY. SO WE'LL GO THROUGH THESE KIND OF QUICK. THE IMPORTANT INFORMATION ON ON A LOT OF THESE SLIDES IS YOU'RE GOING TO LOOK AT THIS AVERAGE REVENUE PER ACRE NUMBER. AND THEN HERE AT THE BOTTOM IS A FLOOR AREA RATIO. SO YOU GUYS WILL HAVE ALL THESE SLIDES. SO IF Y'ALL WANT TO GO HOME AND JUST LOOK AT THEM TONIGHT YOU CAN. OR IN THE MORNING OVER COFFEE. BUT THIS IS TEXAS PARKWAY CORRIDOR IN MISSOURI CITY. IF I GOT SOME OF THE NAMES OF WHAT YOU CALL THESE PLACES WRONG, FORGIVE ME. OR IF I MISSED SOME PROPERTIES IN IT, BUT THIS IS A COMMERCIAL STRIP THAT YOU'RE PROBABLY FAMILIAR WITH, $4,500 AN ACRE. YOU HAVE SINGLE FAMILY DEVELOPMENT THAT PERFORMS BETTER THAN THIS COMMERCIAL STRIP. NOW THE COMMERCIAL STRIP IS PROVIDING RETAIL SALES TAX, BUT YOU ALSO CAN'T LAY ALL OF THE RETAIL SALES TAX AT THE FEET OF THE COMMERCIAL PROPERTY BECAUSE THERE IS NO RETAIL SALES TAX WITHOUT THE RESIDENCES THAT GO THERE AND SUPPORT IT 4500 AN ACRE. THIS IS THE ONE TO THE NORTH, RIGHT. THIS IS YOUR COMMERCIAL INDUSTRIAL FOOTPRINT MORE THAN NORTHERN INDUSTRY. OKAY. SO THERE'S A MIX. THERE'S SOME HIGH EARNERS IN THERE AND SOME LOW EARNERS. I DON'T KNOW IF YOU ALL HAVE BIG ABATEMENT PROGRAMS AND IT'S TIME TO LOOK INTO THAT. BUT IN DFW WHEN I WAS UP THERE, YOU'D HAVE WHOLE INDUSTRIAL FOOTPRINTS THAT JUST EARN NOTHING BECAUSE THEY HAD TEN YEAR PROPERTY TAX ABATEMENT PROGRAMS THAT GOT RID OF ALL THE REVENUE WE WERE EVER GOING TO GET FROM THOSE. BUT THIS IS ACTUALLY A DECENT FROM MY EXPERIENCE, A LOT OF INDUSTRIAL AREAS PERFORM IN THE 1 TO 3000 PER ACRE RANGE, SO THIS ONE'S DOING RELATIVELY WELL. YOU MIGHT HAVE A HIGHER FOOTPRINT OF OFFICE SPACES MIXED IN THERE. WITH LIKE IF YOU HAVE HEADQUARTER SPACES, THEY MIGHT HAVE A BIGGER OFFICE FOOTPRINT THAT HAS MORE EXPENSIVE PERSONAL PROPERTY AND A HIGHER LEVEL OF FINISH OUTS IN IT. ANOTHER COMMERCIAL CENTER, THIS ONE'S AT 6600 AN ACRE. THIS ONE I THINK WAS A BIT NEWER THAN THE OTHERS, WHICH WILL PLAY INTO IT. THE SAME PROPERTY BUILT TEN YEARS AGO IS NOT GOING TO BE WORTH THE SAME AMOUNT. SO ANYTIME YOU HAVE NEW DEVELOPMENT, IT'S GOING TO OVER COMPENSATE FOR THE VALUE YOU GET OUT OF. LET'S SEE. SO THIS WAS A GOOD ONE. SO THIS IS ACTUALLY A MIX I PUT THE AERIAL IN THERE. SO THIS IS I WOULD GUESS SOMEWHAT OF AN OLDER COMMERCIAL STRIP. YEAH. OKAY. AND THEN THE HOUSING BEHIND IT IS REALLY DENSE REALLY DENSE. 
          AND A LOT OF IT WAS SHOWING UP IN THE TAX RECORDS AS TOWNHOMES. SO THEY'RE INDIVIDUALLY OWNED LOTS AND STRUCTURES BUT THEY'RE REALLY DENSE NONETHELESS. AND SO WHEN YOU LOOK AT COMMERCIAL DEVELOPMENT, COMMERCIAL DEVELOPMENT 20 YEARS AGO DID NOT HAVE THE SAME PARKING REQUIREMENTS THAT COMMERCIAL DEVELOPMENT FIVE YEARS AGO. AND YOU CAN SEE IT IN THE ROI. SO IF YOU HAVE A WELL-MAINTAINED COMMERCIAL DEVELOPMENT FROM 20 OR 30 YEARS AGO, IT'S GOING TO PERFORM BETTER SAME SIZE DEVELOPMENT AS SOMETHING BUILT IN THE SAME ACREAGE FIVE YEARS AGO, BECAUSE A LOT OF OUR PARKING AND LANDSCAPING REQUIREMENTS HAVE GONE UP SIGNIFICANTLY, AND IT EATS INTO THE BUILDABLE FOOTPRINT THAT DEVELOPERS ARE ALWAYS ASKING FOR MORE. SO IF YOU BUILT THIS DEVELOPMENT TODAY, IT WOULD PROBABLY NEED A BIGGER SITE JUST FROM PARKING, DRAINAGE AND LANDSCAPING REQUIREMENTS. BUT WHAT IT ALSO SHOWS IS THIS IS $1,800 AN ACRE IN REVENUE IN. TYPICALLY, YOU WOULDN'T HEAR A PLANNER SAY THAT THIS IS MIXED USE. BUT IF YOU THINK ABOUT HORIZONTAL MIXED USE, IF YOU HAVE A PROJECT COME IN AND SOMEONE SAYS, YOU KNOW, WE'LL DO TWO STORY COMMERCIAL WITH MAYBE OFFICE ON TOP, AND WE'LL BUILD DENSE HOUSING BEHIND IT THAT CAN PERFORM REALLY WELL. SOME CITIES WILL GET STUCK ON COMMERCIAL ON THE BOTTOM, RESIDENTIAL ON THE TOP, AND IT KILLS SOME PROJECTS THAT WOULD OTHERWISE BE REALLY, REALLY GOOD FOR THEM. SO SOMETHING TO THINK ABOUT. YOU CAN DO MIXED USE PROJECTS REALLY WELL IN ADJACENCY, AND IT DOESN'T HAVE TO BE A VERTICAL MIXED USE TO PERFORM PRETTY WELL. THIS FOURIER RATIO 0.718 IS REALLY GOOD. OKAY. SO THESE ARE CONTEXT AREAS. AND I'VE GOT A FEW MORE MISSOURI CITY EXAMPLES THAT ARE A LOT MORE SPECIFIC. THESE ARE VERY GEOGRAPHIC AREAS. BUT WE'LL GO OVER SOME CONTEXT. SO SENTARA AND KATY HAS A FLOOR AREA RATIO 
          [01:05:05]
OF 0.327. THERE'S A BIG FOOTPRINT FOR FLOOD CONTROL. THERE'S A BIG FOOTPRINT FOR PARKING. IT EATS INTO THEIR REVENUE STREAMS. AND I ADJUSTED THESE FOR MISSOURI CITY'S TAX RATE. SO THE ASSUMPTION WAS IF THIS WAS IN MISSOURI CITY, THIS IS HOW MUCH REVENUE IT WOULD PRODUCE. THEY'RE AT 1300 AN ACRE. THIS GUY DID BETTER THAN SENTARA DID, WHICH I DON'T THINK A LOT OF PEOPLE WOULD ASSUME. BUT THAT'S HOW THE DATA CAME IN. THIS ONE. SUGAR LAND TOWN SQUARE, 37,000 AN ACRE. SOME OF THE BIG WIN IS THAT YOU HAVE STRUCTURED PARKING. SO YOUR FOOTPRINT FOR PEOPLE SPACE IS MUCH BIGGER AND TALLER. AND YOU ALSO HAVE A LOT OF RESIDENTIAL USES IN THERE, SOMETHING I ALWAYS HAVE TO DO THAT YOU HAVE TO BE CAREFUL OF IS WHEN YOU HAVE CONDOS, YOU'VE GOT TO MAKE SURE YOU CAPTURE ALL OF THOSE RECORDS AND APPLY THEM TO THE SHAPE. BECAUSE SOMETIMES IF YOU JUST LOOK AT THE APPRAISAL DISTRICT WEBSITE, YOU MIGHT CLICK ON A CONDO TOWER AND IT'LL BRING UP ONE RECORD. SO THIS DATA ACTUALLY INCORPORATES ALL THE CONDO RECORDS. SO IT'S GOING TO SHOW THE TRUE VALUE OF YOUR FLOOR RATIOS OF OVER ONE, WHICH IS PRETTY HARD TO DO IN TEXAS. YOU DON'T SEE THAT VERY OFTEN. AND IT'S INTERESTING ON THIS ONE YOU SEE A HIGH CONSISTENCY OF MULTI-STORY DEVELOPMENT. A LOT A LOT OF THESE EXAMPLES, YOU'LL SEE LIKE A LITTLE SQUARE OF TWO STORY BUILDINGS, AND THEN THE REST OF IT'S SINGLE STORY AND SURFACE PARKING. SO IF YOU CAN GET MULTI-STORY DEVELOPMENT OVER A BIGGER FOOTPRINT, IT'S A EXPONENTIAL INCREASE IN YOUR REVENUE. PEARLAND TOWN CENTER. SO THIS IS AN INTERESTING ONE FOR REDEVELOPMENT, FOLKS, BECAUSE THIS IS BASICALLY A MALL FOOTPRINT THAT WAS REDEVELOPED. 
          I LIVE OUT IN CLEAR LAKE, SO WE HAVE. BEIRUT, THE BEIRUT, BEIRUT, THE ONE AT THE BAY MALL ON 45 HAS AN OUTDOOR SETTING LIKE THIS NEXT TO A MALL. SO THEY'VE DONE SOMETHING SIMILAR. 
          THE NICE THING IS, IS THAT IF YOU CAN DO THIS, YOU CREATE A MORE ATTRACTIVE SPACE FOR PEOPLE, BUT YOU ALSO TYPICALLY ALSO GET TWO AND THREE STORY DEVELOPMENT PATTERNS OUT OF IT, WHICH INCREASES YOUR REVENUE THAT PARKING IS NOT REALLY GOING TO GO ANYWHERE. BUT THERE'S OTHER CREATIVE THINGS YOU CAN DO WITH THE PARKING. THEY'VE ACTUALLY PUT IN A LOT OF RESTAURANT PAD SITES ALONG THE NORTH, WHICH HELPS THE TON. BUT EVEN SO, THAT PARKING FOOTPRINT EATS INTO IT, AND THEY'RE AT 11,000 PER ACRE AND THEY'RE FAR IS 0.7 $99,000 AN ACRE. I WAS REBUKED FOR CALLING THIS TOWN AND COUNTRY CENTER. I'VE BEEN TOLD IT'S CITY CENTER. YES. 
          SORRY. CITY CENTER. I MEAN, GREAT DEVELOPMENT PATTERN. IF YOU CAN GET IT. REALLY HIGH. 
          HIGH EARNER. THEY'RE REALLY TALL BUILDINGS. THEY HAVE A 2.14 RATIO. AND WHAT YOU SEE ON THE DATA LIKE THIS IS THERE'S A WIDE RANGE OF SLOW GROWTH. AND THEN WHEN YOU GET THE HIGHER YOU GET IN DENSITY IT TAKES OFF LIKE A ONE. THE POST DOWNTOWN 42,000 ACRE IS DOWNTOWN HOUSTON. IT ALMOST DOESN'T MATTER WHAT YOU PUT THERE. THERE IS AN ELEMENT TO THIS ON THE REAL ESTATE SIDE OF LOCATION IS GOING TO IMPACT SOME OF THESE VALUES. THEIR RATIOS ARE NOT THAT HIGH COMPARED TO THE REST OF THE DOWNTOWN, BUT FOR WHAT THEY ARE, THEY'RE GOING TO EARN REALLY, REALLY WELL. OKAY, SO A LOT OF THE PROJECTS I'VE DONE REAL QUICK, I'M ABOUT TO GET INTO SOME REAL SPECIFIC EXAMPLES. ANY QUESTIONS ON KIND OF THE GEOGRAPHIC FOOTPRINT OF BULK EXAMPLES? OKAY. SO ALL OF THESE EXAMPLES COMING FORWARD ARE GOING TO BE FROM MISSOURI CITY, EXCEPT I THINK FOR ONE APARTMENT COMPLEX THAT MIGHT BE THE STAFFORD YOU CAN TELL ME. BUT THE NUMBERS TO PAY ATTENTION TO ARE THESE THIS BOTTOM NUMBER IN PARENTHESES, YOUR REVENUE PER ACRE AND YOUR FLOOR AREA RATIO. SO THESE ARE ALL SINGLE FAMILY DETACHED HOUSES WHICH FOR MOST OF THE CITIES I'VE EVER WORKED IN IS WHAT MOST PEOPLE WANT. THAT'S WHAT THEY WANT ON THE GROUND. THAT'S WHAT THEY WANT. THE COLORED MAP TO MOSTLY BE. AND FOR A WHILE THAT HAS BEEN VIEWED AS A FINANCIAL BURDEN. IT DOESN'T HAVE TO BE. THERE ARE REALLY GOOD WAYS TO DO SINGLE FAMILY DETACHED THAT CAN EARN REALLY WELL. THEY'LL NEVER EARN AS HIGH AS A MIXED USE TALL DEVELOPMENT, BUT THAT'S ONLY BECAUSE YOU TYPICALLY DON'T SEE SEVEN STORY SINGLE FAMILY HOUSES, RIGHT? YOU MIGHT SEE TWO, YOU MIGHT SEE THREE STORY, BUT THAT'S ABOUT IT. SO THEY DO HAVE A CEILING, BUT YOU CAN BUILD THEM WELL AND THEY CAN DO REALLY WELL. SO. YOU SEE ON THE LEFT A LITTLE FURTHER AWAY THAN I THOUGHT IT WAS GOING TO BE 50 800FT■!S AND THEN 6800 IN THE MIDDLE AND THEN 9700 ON THE FAR RIGHT, ON THE REVENUE PER ACRE IN THE FLOOR AREA RATIO. YOUR SMALLER LOT IS, OF COURSE, GOING TO BE WORTH MORE 14,000 AN ACRE DOWN TO 13,000. AND THEN ON THE 
          [01:10:07]
FAR RIGHT, 9700 AN ACRE. SO THESE HOUSES, THERE'S ABOUT A 4000 SQUARE FOOT DIFFERENCE IN LOT SIZE FROM THE LEFT TO THE RIGHT, BUT THE SIZE OF THE HOME. YOU GO FROM 2000FT■!S TO 3600. E BIGGER AND BIGGER THAT LOT SIZE BECOMES, THE SLOWER AND SLOWER THE HOUSE IS GOING TO GROW. AT SOME POINT, HOUSES ARE GOING TO CAP OUT ABOUT 4000FT■!S, EXCEPT FOR THE ODD FIVE 6000 SQUARE FOOT MANSION. SO ON THOSE LOT SIZES, YOU'RE DIMINISHING RETURNS STARTS TO ESCALATE AS WELL. THE BIGGER THOSE LOSSES GET. YOU GET INTO BIGGER AND BIGGER LOT SIZES. YOU GO DOWN TO 7200 AN ACRE, DOWN TO 3400 AN ACRE DOWN TO 2800 AN ACRE. SO YOU START TO SEE WHAT THESE THINGS LOOK LIKE. ONE OF THE INTERESTING DYNAMICS. LET ME GO BACK. ONE SLIDE IS MOST CITIZENS, WHEN THEY'RE IN A PUBLIC MEETING AND YOU TALK ABOUT LOWERING THE MINIMUM LOT SIZE, YOU MIGHT LOWER IT FROM 6 TO 5000FT■!S. IT MIGHT CAUSE A HUGE DISAGREEMENT. MOST PEOPLE CAN'T EYEBALL THE DIFFERENCE WHEN THEY'RE JUST WALKING DOWN A STREET. ALL OF THESE HOUSES ARE NOT FAR FROM EACH OTHER IN MISSOURI CITY. SOME OF THEM ARE IN THE SAME NEIGHBORHOOD. 
          THEY'RE JUST DIFFERENT PHASES OF DIFFERENT PRICE POINTS. SO FOR THE MOST PART, WHEN YOU TALK ABOUT GOING FROM 6000FT■!S DOWNO 4500FT■!S, THE REVENUE GAIN IS IMMENSE. THE DIFFERENCE IN CHARACTER IS NOT THAT BIG FOR A LOT OF PEOPLE. THEY'RE NOT GOING TO NOTICE THE DIFFERENCE, ESPECIALLY IF ON THE LARGER ON A 6000 SQUARE FOOT LOT, IF IT'S FILLED UP WITH A SINGLE STORY HOUSE VERSUS A 5000 SQUARE FOOT LOT WITH A NARROW TWO STORY HOUSE, THE SMALLER LOT MIGHT ACTUALLY FEEL AND LOOK MORE OPEN, BUT IT'S GOING TO GENERATE MUCH MORE REVENUE FOR THE CITY. 
          OKAY, SO THEN ON THE LEFT YOU GET A $14,000 AN ACRE SINGLE FAMILY HOME. IT'S ATTACHED, SO IT'S A TOWNHOME, BUT IT'S A 20 900 SQUARE FOOT LOT. IS THAT STILL? I DIDN'T LOOK AT YOUR ZONING CODES. IS THAT ALLOWED IN MISSOURI CITY ANYMORE? SOME SPOT. WHERE DOES IT SAY, OH, THAT'S JUST A SORRY. THOSE ARE ALL IN MISSOURI. IT IS ALLOWED. SO IN THE 40 EXAMPLE I BROUGHT UP EARLIER THERE, THERE'S TWO DIFFERENT SCENARIOS. AND ONE OF THEM EARNED THEM AN ADDITIONAL 3 MILLION A YEAR IN REVENUE. SOME OF THE BIG CHANGES THEY MADE WAS THEY WENT FROM THEY CHANGED A FUTURE LAND USE FROM MEDIUM DENSITY RESIDENTIAL TO HIGH DENSITY RESIDENTIAL. SO STILL SINGLE FAMILY DETACHED. IT MIGHT HAVE GONE FROM 7000 SQUARE FOOT MINIMUM LOT SIZES TO 5500 MINIMUM LOT SIZES. IT CAN BE A BIG DIFFERENCE, ESPECIALLY WHEN IT'S OVER HUNDREDS OF ACRES OF PROPERTY. THEN YOU GET INTO THE APARTMENTS 11,000 PER ACRE FOR THE MIDDLE. THOSE ARE TWO STORY APARTMENTS. THE THREE STORY APARTMENTS GET UP TO 14,000 AN ACRE. GOOD WINNERS FOR THE CITY. 
          WHEN WE TALK ABOUT IMPLEMENTATION, THERE'S ALSO A LOT OF INFRASTRUCTURE WITH APARTMENTS THAT THE CITY DOESN'T HAVE TO MAINTAIN. MOST OF THEIR INTERNAL CIRCULATION IS PRIVATELY MAINTAINED, WHICH CUTS OFF YOUR CROSSROADS. SO THE NEXT THING WE'RE GOING TO TALK ABOUT IS IMPLEMENTATION. ANY DATA QUESTIONS? I DON'T NECESSARILY HAVE A DATA QUESTION OR ANY OTHER QUESTION. WE HAVE A CHALLENGE. WE HAVE ALWAYS BEEN A BEDROOM COMMUNITY, AND WE'RE TRYING TO RELIEVE THE HOMEOWNERS TAKING ON THE BURDEN OF THE TAX REVENUE, THAT THAT'S WHERE IT COMES FROM. CITY GETS IT. I'M LOOKING AT THIS AND I'M LOOKING AT IT FROM A HOMEOWNER, A CONSTITUENT. HOW CAN A PRESENTATION LIKE THIS TO BE SHORTENED? THAT CAN BE, FOR LACK OF A BETTER TERM, IDIOT PROOF. BECAUSE AS YOU HAVE STATED, AND I HAD THE OPPORTUNITY TO SEE THIS BEFORE AND I THOUGHT IT WAS VERY IMPRESSIVE THEN AND SEE IT AGAIN, IT'S EVEN MORE IMPRESSIVE WHEN WE TALK ABOUT SOMETHING BESIDES SINGLE FAMILY UNITS THAT WE WANT TO BRING TO THE CITY. 
          HOW CAN WE SHOW THAT THERE IS A REVENUE THAT CAN BE GENERATED THAT COULD BE BENEFICIAL TO OFFSET SOME OF THE NOT BURDEN, BUT SOME OF THE STRESS THAT'S ON THE ROOFTOPS, THE HOMEOWNERS, BECAUSE IT'S ALWAYS SAID, WE DON'T WANT THAT. WE DON'T WANT APARTMENTS IN ANY SHAPE, FORM OR FASHION. AND I'M JUST SITTING HERE LOOKING AT THIS SAYING, THIS IS THE TYPE OF INFORMATION 
          [01:15:03]
THAT NEEDS TO BE PUT BEFORE THE COMMUNITY SO THAT THEY CAN GET A BETTER UNDERSTANDING THE RELEVANCE OF IT. GREAT QUESTION. SO THE TWO THINGS I'VE SEEN THAT MAKE A DIFFERENCE IS WHEN YOU'RE LOOKING AT A DEVELOPMENT PATTERN LIKE THIS IN A FUTURE LAND USE PLAN CITY, LIKE A MIXED USE AREA OR A MULTIFAMILY AREA THAT HAS COMMERCIAL NEXT TO IT. TYPICALLY THE FIRST REACTION YOU GET IS A FEAR REACTION. SO THEY'RE GOING TO THINK OF WHAT THEY DON'T WANT. BUT YOU CAN YOU CAN APPROACH IT WITH TWO DIFFERENT THINGS. ONE, IF YOU I'VE HAD A LOT OF SUCCESS SHOWING PEOPLE VISUAL EXAMPLES OF WHAT IT MIGHT LOOK LIKE, BECAUSE IT'S GOING TO BE NEW. SOMETIMES PEOPLE THINK OF THE OLD RUNDOWN VERSION THEY'VE ALREADY GOT, AND THEY DON'T WANT ANY MORE OF THAT. BUT WHEN YOU SHOW THEM PICTURES OF LIKE RECENT DEVELOPMENT, IT TENDS TO BE VERY SHINY AND VERY PRETTY. ALL THE LANDSCAPING IS IN, ALL THE INFRASTRUCTURE IS UNDERGROUND, IT LOOKS GREAT. AND YOU CAN ALSO SHOW THEM SOME OF THE COMMERCIAL USES THAT MIGHT GO IN WITH IT. SO IF PEOPLE WANT A GROCERY STORE OR A STARBUCKS OR WHATEVER IT IS, IF YOU CAN MAKE THE CONNECTION BETWEEN THIS DEVELOPMENT IS GOING TO PROVIDE THE ROOFTOPS THAT ARE GOING TO PUSH US OVER THE THRESHOLD FOR THE COMMERCIAL TO GET THE COMMERCIAL SERVICES WE WANT. THERE'S A THERE'S A WIN IN IT FOR THE CITIZENS. SO, OH, GO AHEAD, GO AHEAD. THE OTHER THING IS WHEN YOU TALK ABOUT TAX RATE AND PAYING TAXES, I'VE NEVER SEEN. VALUES DROP. SO YOU'LL HEAR CITIZENS SAY, WELL, IF THIS APARTMENT COMPLEX COMES IN NEXT TO MY PROPERTY, IT'S GOING TO KILL MY PROPERTY VALUE. IT WON'T. I'VE NEVER SEEN THE ONLY TIME I'VE SEEN PROPERTY VALUES DROP IS IN NATURAL, NATURAL DISASTERS. WHERE WHERE WEST SEVENTH IS IN FORT WORTH RIGHT NOW USED TO BE AN INDUSTRIAL FOOTPRINT. A TORNADO CAME IN AND WIPED IT OUT. ALL THE PROPERTY VALUES DROPPED FOR A LITTLE WHILE, AND THEN IT REDEVELOPED AS A MIXED USE CENTER. AND NOW THEY'RE 100 TIMES MORE THAN WHAT THEY USED TO BE. OR YOU DISCOVER SOME KIND OF ENVIRONMENTAL HAZARD UNDERNEATH OR ADJACENT TO YOUR PROPERTY. YOUR VALUE WILL DROP. APPRAISED VALUE IS HARDLY EVER DECREASE. THEY MIGHT STAGNATE. BUT WHAT THE CHANGE MOST PEOPLE EXPERIENCE IN THEIR PROPERTY TAXES ARE GOING TO BE RATE CHANGES OR IT'S GOING TO GO UP. THE VALUE IS GOING TO GO UP, AND THE RATE MIGHT GO UP TO, OR THEY GET SOME KIND OF NEW EXEMPTION, LIKE THE EXEMPTION PERCENTAGE INCREASES. AND SO THEY PAY LESS PROPERTY TAXES. WHEN YOU'RE TALKING ABOUT NEW DEVELOPMENT, WHAT YOU'RE WHAT YOU'RE TRYING TO GET FOLKS ON BOARD WITH IS, LOOK, OUR BUDGET, LET'S SAY YOUR BUDGETS, OKAY. 
          AND YOU WANT TO KEEP YOUR RATE STATIC, BUT YOU WANT TO DECREASE YOUR RELIANCE ON YOUR EXISTING CITIZENS. SO THE WAY TO DO THAT IS TO BRING IN MORE CITIZENS AND DILUTE THE COST BURDEN ACROSS A BIGGER POPULATION. IF YOU DON'T HAVE A FOOTPRINT AVAILABLE TO SPREAD EVERYONE OUT, WHAT YOU WANT TO DO IS STACK PEOPLE UP. SO IF PEOPLE ARE WILLING TO LET PEOPLE STACK, THEY'RE NOT GOING TO FORCE PEOPLE INTO THOSE TYPES OF HOUSING. BUT THERE'S TONS OF PEOPLE WHO WANT TO LIVE IN THE KIND OF HOUSING. IF THEY CAN GET ON BOARD WITH LETTING PEOPLE STACK HOUSING SOMEWHERE, THEN YOU CAN START TO ILLUSTRATE TO THEM. YOU KNOW, IF WE HAD 20 MORE ACRES OF FOUR STORY RESIDENTIAL SOMEWHERE IN THE CITY, WE'RE GOING TO GET THIS MUCH REVENUE PER SQUARE FOOT, WHICH HAS THIS AMOUNT OF REVENUE. IF IT'S IF IT'S COMING IN, LIKE IN Y'ALL'S GUY'S CASE AND REDEVELOPMENT, YOU'RE NOT INCREASING YOUR COST BURDEN VERY MUCH. MOST OF YOUR SERVICES ARE LIKE IF YOU'RE COMMERCIAL CORRIDOR IS REDEVELOPED AND THEY HAVE APARTMENTS MIXED IN, YOUR SERVICE COST ISN'T GOING TO SKYROCKET BECAUSE YOU'RE ALREADY PROVIDING POLICE, YOU'RE ALREADY PROVIDING FIRE. THE STREETS ARE ALREADY THERE, YOUR LIBRARIES ARE ALREADY IN PLACE, YOUR PARKS ARE ALREADY IN PLACE. YOU MIGHT REDO SOME OF IT, AND THAT MIGHT BE IN PARTNERSHIP WITH THE DEVELOPMENT, BUT YOUR COST IS GOING TO BE RELATIVELY THE SAME, BUT YOUR REVENUE IS GOING TO INCREASE DRAMATICALLY. AND SO IF YOU HAVE A BUDGET THAT IS STATIC, BUT YOU HAVE REVENUE THAT'S INCREASING, YOU'RE DECREASING THAT BURDEN ON EVERYONE ELSE. SO THOSE ARE THE TWO THINGS I'VE SEEN MAKE HEADWAY WITH CITIZENS IN SOME OF. AND I'M GOING TO USE THE 90 BELTWAY CORRIDOR WHERE WE HAVE ALL THAT INDUSTRIAL GROWTH OVER THERE. THE CHALLENGE WE HAVE IS THE MAJORITY OF THOSE FOLKS THAT WORK IN THAT INDUSTRIAL AREA DON'T LIVE IN THE CITY BECAUSE WE DON'T HAVE APPROPRIATE, AFFORDABLE. AND I HAVE TO BE CAREFUL WITH THE AFFORDABLE PIECE HOUSING. BUT WHAT IS OVERLOOKED IS WITH THAT DENSITY OF PEOPLE, YOU BRING MORE COMMERCIAL, MORE RETAIL BECAUSE THEY WANT THE TRAFFIC CAMERA. AND SO I'M GOING TO SPEAK TO 
          [01:20:06]
JENNIFER IN IN REFERENCE TO THIS. AND, AND THIS WILL BE SOMETHING THAT GOES ON TO COUNCIL. THIS IS THE TYPE OF INFORMATION THAT NEEDS TO BE PUT BEFORE THE COMMUNITY TO EXPLAIN HOW THEY ALL TIE IN TOGETHER, WHERE WE NEED MORE TRAFFIC, MORE FOOTPRINTS TO DRAW COMMERCIAL AND ESPECIALLY IN. I'M GOING TO SPEAK TO THIS AREA HERE BECAUSE THIS IS THE IS THE OLDER SECTION OF OUR CITY. AND SO IT IS IT FALLS UNDER THE REDEVELOPMENT ASPECT BECAUSE WE HAVE LIMITED NUMBERS, LIMITED AMOUNTS OF LAND AVAILABLE FOR DEVELOPMENT. SO NOW WE GOT TO REINVENT IT, AND WE NEED TO SEIZE ON THE OPPORTUNITY WITH WHAT WE HAVE LEFT TO BEST USE IT IN SITUATIONS LIKE THAT, SO THAT WE CAN GENERATE THE REVENUE THAT WE CAN GENERATE WITH WHAT WE HAVE LEFT. I THINK WE'VE ACTUALLY GOT A DECENT EXAMPLE. WE HAD SOMEBODY COME BEFORE US ABOUT A YEAR AGO WITH SOME VERY SMALL ZERO LOT LINE HOMES, BUT THEY WERE BUILDING A PHENOMENAL DEVELOPMENT, STAFFORD AND THEY WERE SELLING IN THE HALF MILLION DOLLAR RANGE. RIGHT. AND THEN WHEN IT GOT TO CITY COUNCIL IT WAS LIKE WELL HE'S NOT WAS VERY INVOLVED. SO QUESTION I'VE GOT IS THE PLANNING DEPARTMENT DO THIS KIND OF ANALYSIS ON THOSE AND SAY, HEY, HERE'S WHAT I CURRENTLY GET FOR THAT PROPERTY. IF YOU PUT THIS IN A TAX REVENUE TAX AND YOU PUT SOMETHING ELSE IN IT IF YOU WANT, IF THAT'S SOMETHING YOU CAN DO TO IMPROVE. WELL, I THINK COUNCIL, I THINK PART OF THIS COMPREHENSIVE PLAN UPDATE PROCESS IS WE'RE TRYING TO MERGE THAT WHOLE FISCAL RESPONSIBILITY WITH LAND USE, BECAUSE I THINK HISTORICALLY WE KIND OF LOOKED AT THOSE AS TWO SEPARATE CONVERSATIONS, AND WE KNOW THAT THEY HAVE A RELATIONSHIP, BUT WE HAVEN'T REALLY MERGED THOSE CONVERSATIONS TOGETHER. SO THAT'S WHY I THINK, YOU KNOW, STAFF ENCOURAGED TO HAVE THIS PRESENTATION AS WE GO THROUGH THIS PROCESS SO THAT WE CAN START TO MAKE THOSE CONNECTIONS. I THINK, I'M GLAD YOU'RE HERE, BUT I'M NOT SURE WE'RE 100% RIGHT. AUDIENCE I'M SURE. THERE'S A. THERE'S A THERE'S A COUPLE THINGS. THE CITY OF FAITH IS EAST OF DALLAS. THEY HAVE BEEN DRINKING THE KOOL-AID ON FINANCIAL ANALYSIS FOR A LONG TIME. THEY HAVE A CALCULATOR THAT THEY BUILT, A SPREADSHEET THAT HAS HELPED THEM UPDATE A COUPLE OF TIMES WHERE THEY DO THAT. NOW, THEY CAN'T ATTACH IT TO ANY SORT OF REGULATORY PROCESS. IT CAN'T BE PART OF A LIKE A REQUIREMENT OR IT CAN'T BE THE GATEWAY FOR GETTING APPROVAL. BUT IT'S PART OF THEIR DISCUSSION FOR EVERY PROJECT THAT COMES IN, ESPECIALLY IF IT'S A PLANNED DEVELOPMENT AND THERE'S SOME BACK AND FORTH NEGOTIATIONS, THEY CAN AT LEAST FISCALLY MEASURE THE DIFFERENT DYNAMICS THAT THE DEVELOPER WANTS TO DO VERSUS WHAT THE CITY IS TRYING TO GET OUT OF IT. THE IF YOU HAVE THE DATA AND THE STAFF HAS TIME, YOU CAN DO THAT TYPE OF ANALYSIS. THE I DID A PROJECT FOR PILOT POINT A LONG TIME AGO WHERE THEY HAD THREE DIFFERENT DEVELOPERS COMING IN. PILOT POINT IS TINY. IT'D BE LIKE DEVELOPING IN FULSHER RIGHT NOW. THEY HAD THREE DIFFERENT DEVELOPERS COMING IN UNDER THREE DIFFERENT PLANNED DEVELOPMENT ZONINGS, ALL ASKING FOR INCREASED DENSITY IN EVERY DEVELOPER WAS TELLING THEM IT WOULD BE BETTER FINANCIALLY FOR THE CITY, AND THE CITY DIDN'T KNOW, AND THEY DIDN'T KNOW HOW TO CONFIRM WHETHER OR NOT THAT WAS HAPPENING. SO ONE OF MY EARLIEST CONSULTING PROJECTS, I WENT IN THERE AND I MEASURED IT FOR THEM. AND SURE ENOUGH, IN EVERY CASE, IF THEY LET THE DEVELOPER DO WHAT THEY WERE ASKING, WE COULD MEASURE THE INCREASE IN REVENUE THAT THAT WOULD COME FROM IT. AND WHAT THEY WERE ASKING FOR DIDN'T FALL OUTSIDE THE BOUNDS OF THE COMPREHENSIVE PLAN. THEY WEREN'T, YOU KNOW, ASKING FOR MANHATTAN AND PILOT POINT. IT WAS, YOU KNOW, 1.2 UNITS MORE PER ACRE THAN, THAN WHAT WAS ALLOWED. SO IT'S DEFINITELY DOABLE. AND THERE'S DIFFERENT WAYS YOU CAN YOU CAN LOOK AT IT. THE OTHER SIDE OF IT IS AFFORDABILITY HAS BEEN BROUGHT UP A COUPLE TIMES TONIGHT. IT'S COME UP A NUMBER OF TIMES IN MY PROJECTS BECAUSE A LOT OF TIMES THE DISCUSSION WILL BE, HOW DO WE GET AFFORDABLE HOUSING TO COME IN? AND FROM WHAT I'VE SEEN, BOTH WORKING ON THE PUBLIC SIDE AND ON THE CONSULTING SIDE IS IT'S REALLY, REALLY DIFFICULT TO HAVE AFFORDABLE HOUSING COME IN. WHAT I'VE SEEN WORK IS YOU GET HOUSING TO COME IN AND IT CREATES AFFORDABLE UNITS IN YOUR COMMUNITY. SO WHAT I MEAN IS THE LAST CITY I WORKED FOR WAS THE CITY OF GRAND JUNCTION IN COLORADO, AND WE DID A HOUSING STUDY, AND THEY COMPARED OUR MARKET BRACKETS AND THEN OUR INCOME BRACKETS. AND WHAT THEY FOUND WAS WE ACTUALLY WE DIDN'T HAVE ENOUGH OF THE HIGHEST END HOMES IN OUR MARKET. WE HAD TOO MANY HIGH END EARNERS. AND WHAT THEY WERE DOING WAS THEY WERE OVERPAYING FOR MID-MARKET HOMES, WHICH WAS PUSHING MID-MARKET BUYERS DOWN A BRACKET. SO THEY WERE PAYING OVERPAYING FOR LOW 
          [01:25:06]
MARKET HOMES, WHICH WAS PUSHING LOW MARKET BUYERS COMPLETELY OUT OF THE MARKET. AND SO THEIR RECOMMENDATION WAS ACTUALLY LIKE, YOU COULD PROBABLY FIX THIS JUST BY TRYING TO FACILITATE SOME MORE HIGH END RESIDENTIAL DEVELOPMENT AND THEN TRYING TO FILL IN SOME GAPS WITH SMALLER UNITS AROUND THE CITY. BECAUSE ONCE YOU GET ALL YOUR HIGH END BUYERS OUT OF THE MID BRACKET, YOUR MID BRACKET WILL CALM DOWN. EVERYBODY WILL MOVE BACK UP. SO THERE'S A COUPLE OF THINGS LIKE IN FATE, I'M GOING TO GO OVER THREE EXAMPLES WE DID IN FATE WHERE WE UPDATED THEIR ZONING CODE BASED ON A COMP PLAN THAT HAD A LOT OF FINANCIAL ANALYSIS IN IT. SO THERE ARE BIG QUESTION WAS WILL WE HAVE THE COMP PLAN THAT TALKS ABOUT FINANCIAL ANALYSIS. WHAT DO WE ACTUALLY DO. CAN WE DO THIS. SO WE KEYED IN ON THREE THINGS. WE KEYED IN ON LAND USES. ONE OF THE THINGS ABOUT LAND USE IS YOU CAN DO ALMOST ANY LAND USE. WELL. AND SO THEY HAVE A LOT OF SINGLE FAMILY EXCLUSIVE ZONING. SO ONE OF THE BIG EFFORTS WAS HOW DO YOU HOW DO YOU LOOSEN THAT UP JUST A LITTLE BIT. CAN YOU ALLOW ACCESSORY DWELLING UNITS. CAN YOU ALLOW THEM WITH A CAP LIKE 50% OF THE PROPERTIES CAN HAVE ACCESSORY DWELLING UNITS. SO THEY LOOKED AT PROVIDING A BIT MORE VARIETY IN THEIR LAND USE CATEGORIES AND LOOSENING THINGS UP A BIT. LAND USE CATEGORIES CAN ALSO BE A BIT TOO TIGHT. YOU CAN REALLY LIMIT WHEN YOU WHEN YOU REALLY ISOLATE LAND USES RIGIDLY, IT MAKES A IT. IT CREATES A, A VERY UNDYNAMIC A RIGID ENVIRONMENT FOR DEVELOPERS TO LOOK FOR PROPERTIES TO BUILD STUFF. AND SO IF THEY HAVE A THING THAT THEY BUILD ALL THE TIME AND THERE'S ONLY TWO PROPERTIES IN YOUR CITY, THOSE TWO PROPERTY OWNERS MIGHT KNOW THAT AND THEY MIGHT BE REALLY DIFFICULT TO WORK WITH. BUT IF THEY CAN BUILD IN TEN DIFFERENT LOCATIONS, IT LOOSENS UP THE MECHANISMS A BIT MORE. SO EASING UP THE LAND USES CAN BE A CAN BE A WIN. AND THEN THE ACCESSORY DWELLING UNITS HAS BEEN A WIN IN A COUPLE DIFFERENT PLACES THAT HAVE SEEN IN CROWLEY. WE MEASURED WHICH IS SOUTH OF FORT WORTH. THEY HAD A LARGE, DEVELOPED, OLDER NEIGHBORHOOD THAT WAS LARGE LOTS, BUT IT WAS IT WAS NOWHERE CLOSE TO REDEVELOPING, AND THEY HAD AFFORDABLE HOUSING ISSUES. THEY HAD AN AGING POPULATION ISSUE WHERE PEOPLE WANTED TO STAY IN CROWLEY, BUT THE HOUSES WERE TOO BIG. THEY WANTED TO DOWNSIZE. AND SO THEY OPENED UP ACCESSORY DWELLING UNIT DEVELOPMENT IN SOME OF THESE OLDER NEIGHBORHOODS, AND IT PROVIDED SMALLER UNITS THAT WERE SLIGHTLY MORE AFFORDABLE, CERTAINLY IN MAINTENANCE AND TIME ISSUES, BUT IT ALSO INCREASED THE PROPERTY VALUE OF THOSE PROPERTIES BECAUSE YOU'RE ADDING PEOPLE SPACE TO EXISTING PROPERTIES, AND IT DIDN'T INCREASE THEIR COST PER UNIT. SO IT WAS AN EASY WIN. A LOT OF THESE PROPERTIES, WHEN YOU EXPLAIN LIKE, HEY, YOU KNOW, WE'RE GOING TO CAP THIS AT 600FT■!S MAX, IT'S GOT TO BE IN CERTAIN SPOTS. WHEN YOU WHEN YOU START GETTING INTO THE DETAILS WITH YOUR CITIZENS ABOUT THIS IS WHAT IT CAN LOOK LIKE. OFTENTIMES YOU SEE PEOPLE GET ON BOARD WITH IT. SO THOSE ARE THOSE ARE EASY WINS IN THE LAND USE. CATEGORIES. THE DENSITY AND BULK STANDARDS WAS A REALLY BIG ONE. WE DID A COUPLE DIFFERENT THINGS WITH FATE. THE BIGGEST THING WE DID WAS ON THE PARKING STANDARDS. SO A LOT OF CITIES HAVE GONE TO KIND OF MARKET DRIVEN PARKING REQUIREMENTS. A LOT OF THE MINIMUM PARKING REQUIREMENTS THAT CITIES HAVE ARE. LOOSELY BASED ON MATH AND SCIENCE FROM A LONG TIME AGO, AND SO THEY DON'T EXACTLY HAVE A GROUNDING IN LIKE THIS IS WHAT IT NEEDS. AND DEVELOPERS WILL OFTEN TELL YOU EXACTLY HOW MANY PARKING SPACES YOU NEED. 
          STARBUCKS KNOWS EXACTLY HOW MANY PARKING SPACES IN EVERY MARKET, SO IT IS H-E-B APARTMENT DEVELOPERS ARE NOT GOING TO UNDERPART THEIR APARTMENT COMPLEXES, SO SOMETIMES JUST LOOSENING UP THE PARKING REGULATIONS CAN INCREASE THE AVAILABLE BUILDABLE FOOTPRINT FOR DEVELOPERS, WHICH ALSO INCREASES YOUR REVENUE POTENTIAL FOR DEVELOPERS. I HAVE A QUESTION IS PERTAINING TO JENNIFER. YOU MADE THE STATEMENT MARKET BASED PARKING. HOW DO WE OR CAN WE INCORPORATE THAT INTO THE WAY OUR ORDINANCES NOW SO THAT I MEAN, I KNOW WE DO EXCEPTIONS AND VARIANCES AND ALL OF THAT, BUT THAT WAS CAN YOU JUST ELABORATE JUST BASICALLY EXPLAIN WHAT YOU JUST SAID, MARKET BASED PARKING? I CAN TELL YOU WHAT I MEAN BY IT. OKAY. 
          WELL, YEAH THAT'S IT. SO WE'RE NOT GOING TO LOOK IT UP. BUT I MEAN IT'S YEAH THEY THEY KNOW AND. WHAT IT BASICALLY MEANS IS LETTING THE DEVELOPER TELL YOU HOW MUCH PARKING THEY NEED. AND IT LOOKS LIKE HOW CITIES ACTUALLY DO THAT. SO FORT WORTH FOR A LONG TIME HAS ACTUALLY HAD 
          [01:30:05]
THE ONLY TIME THEY REQUIRE A MINIMUM PARKING AMOUNT IS IF YOU ARE WITHIN, YOU'RE DEVELOPING WITHIN. I THINK IT WAS 500FT OF SINGLE FAMILY RESIDENTIAL. SO IF YOU ARE NOT WITHIN 500FT OF A SINGLE FAMILY HOME, YOU HAVE NO MINIMUM PARKING REQUIREMENTS. YOU CAN PARK IT HOWEVER YOU WANT TO IN GRAND JUNCTION. THAT WAS TEN YEARS, 15 YEARS AGO. SO IT MIGHT BE DIFFERENT NOW, BUT THEY STILL DON'T. THEY HAVEN'T MADE IT MORE RIGID. IF ANYTHING, THEY'VE THEY'VE DONE MORE MARKET. MARKET DRIVEN JUST MEANS THE DEVELOPERS DETERMINE GRAND JUNCTION. WE DID SOMETHING SIMILAR BUT ONLY IN THE DOWNTOWN AREA. SO IN PLACES THAT WE HAD DESIGNATED AS HIGH DENSITY AREAS, WE WENT REAL HANDS OFF ON MINIMUM PARKING REQUIREMENTS BECAUSE THAT GETS IT GETS REALLY TRICKY TO COUNT TOO, BECAUSE IN THOSE HIGH DENSITY AREAS, LIKE IF YOU REDEVELOP A COMMERCIAL CORRIDOR, YOU MIGHT HAVE MORE OF A 24 HOUR LIFE CYCLE WHERE YOU'RE COMPARING. OFTENTIMES, A ZONING ORDINANCE WILL REQUIRE YOU TO PARK THE RESIDENTIAL AND THE COMMERCIAL ON TOP OF EACH OTHER, BUT IN REALITY, THEY'RE GOING TO BE PARKED AT DIFFERENT TIMES. AND SO WHEN THE RESIDENTS ARE GONE DURING THE DAY, THEIR PARKING SPOTS MIGHT BE OPEN FOR DAYTIME BUSINESS. AND THEN WHEN THE BUSINESS IS SHUT DOWN, THE RESIDENCES COME HOME. SO YOU MAY NOT NEED TO ADD ALL THOSE THINGS UP AND HAVE THIS REALLY LARGE MINIMUM PARKING REQUIREMENT ON STREET PARKING IS HARD TO ACCOUNT FOR BECAUSE IT'S IN THE PUBLIC REALM. SO OFTENTIMES DEVELOPERS AREN'T ALLOWED TO COUNT IT TOWARDS THEIR MINIMUM PARKING IF YOU HAVE IT. BUT IT'S PERFECT. YOU KNOW IT'S THERE. 
          SOME CITIES NOT IN TEXAS, AS FAR AS I KNOW, HAVE JUST COMPLETELY GOTTEN RID OF ALL THEIR MINIMUM PARKING REQUIREMENTS. AND THEY JUST THEY DON'T HAVE, YOU KNOW, THERE'S MOST OF THE PARKING CONUNDRUMS I'VE SEEN IN CITIES WERE IN REALLY OLD AREAS WHERE NOT AS MANY PEOPLE DROVE, AND IT BUILT OUT AND IT BECAME REALLY POPULAR, AND IT'S STILL POPULAR, BUT A LOT MORE PEOPLE DRIVE NOW. 
          AND SO IT GETS CROWDED. BUT THE CROWDED SPACE ECONOMICALLY IS REALLY GOOD. IT'S NOT GOOD IF YOU'RE AN ELECTED OFFICIAL OR A STAFF MEMBER OR A CITIZEN SOMETIMES. BUT IS IT YOGI BERRA SAYING HE'S LIKE, YEAH, NOBODY GOES THERE ANYMORE. IT'S TOO CROWDED, RIGHT? LIKE IT'S A GOOD PROBLEM TO HAVE. SO DENSITY, BULK STANDARDS. THE OTHER THING I'LL SAY IS LANDSCAPING. WE NEED LANDSCAPING, BUT WE SOMETIMES DO NOT NEED ALL THE LANDSCAPING WE'RE REQUIRING AND ALL THE DIFFERENT SPACES. SO THAT ONE'S A BIT MORE NUANCED. AND THERE'S A LOT MORE ART TO THAT ONE. 
          BECAUSE IF YOU IN HOUSTON, IT'S REALLY EASY TO GET THINGS TO GROW. YOU CAN HAVE A SMALL SPOT AND GROW A LOT. IN GRAND JUNCTION WE DON'T HAVE ANY WATER. AND SO TO GET A CERTAIN AMOUNT OF PLANTS IN OR ANY KIND OF SHADE, YOU HAD TO HAVE A BIGGER FOOTPRINT. YOU HAD TO BE REALLY CAREFUL ABOUT WHAT YOU REQUIRED AND HOW MUCH SPACE IT TOOK, BECAUSE THEN IT REPLACES TO WHERE YOU COULDN'T EVEN GET WATER TO IT. YOU DON'T HAVE THAT ISSUE IN HOUSTON, BUT YOU DO HAVE FLOOD REQUIREMENTS, DRAINAGE ISSUES THAT COME INTO PLAY. THERE'S DIFFERENT WAYS TO DO IT. AND IF A DEVELOPER CAN COME UP WITH A WAY WHERE IT TAKES UP A SMALLER FOOTPRINT, THAT MIGHT BE A GOOD THING TO AT LEAST ALLOW FOR THAT DISCUSSION TO HAPPEN. SO ALL THESE THINGS WE DO IN THE ZONING CODES, SETBACKS, MAXIMUM HEIGHT REQUIREMENTS CAN REALLY GET IN THE WAY. THERE'S LOTS OF LITTLE THINGS YOU CAN DO IN YOUR ZONING CODE TO INCREASE THAT BUILDABLE FOOTPRINT IN A WAY THAT IS STILL GOING TO CREATE AN ATTRACTIVE COMMUNITY, BUT ALSO BE A FINANCIAL LAND FOR THE CITY AND THE DEVELOPERS. MAXIMUM HEIGHT, SETBACKS, LANDSCAPING, DRAINAGE, PARKING, ALL THOSE THINGS COME INTO PLAY. EVEN SOMETHING AS SIMPLE AS I'VE SEEN. RESIDENTIAL ZONING DISTRICTS REQUIRE SIDE BY SIDE PARKING. SO TWO PARKING SPACES FOR EVERY SINGLE FAMILY HOME AND THEY CAN'T BE STACKED. I DON'T KNOW WHY. IF YOU HAVE A LONG DRIVEWAY, IT SEEMS REASONABLE THAT YOU SHOULD BE ALLOWED TO STACK YOUR CARS AND BACK ONE OUT TO GET THE OTHER ONE OUT, BUT SOME ZONING CODES SAY THAT'S WHAT THEY REQUIRE, AND SO YOU CAN STILL HAVE TWO SPOTS SO YOU CAN STACK THEM. THE LAST THING WE WENT OVER WITH FATE ARE THE BLOCK STANDARDS. SO THIS WOULD BE IN YOUR SUBDIVISION ORDINANCE. WHEN I WAS GOING THROUGH SCHOOL IN PLANNING THE BIG THING WAS BLOCK LENGTH. I DON'T KNOW IF IT'S STILL A REALLY POPULAR THING TO TALK ABOUT, BUT WE WERE ALL ENAMORED WITH 3 TO 500 FOOT BLOCK LENGTHS BECAUSE IT WAS CONNECTIVE. IT WAS FOR PEDESTRIANS AND CYCLISTS, AND IT FELT REALLY GOOD. AND YOU COULD GET AROUND. EMERGENCY SERVICES REALLY LIKED IT BECAUSE THEY COULD TAKE ALTERNATE ROUTES TO LOTS OF DIFFERENT PLACES. IN FACT, WHEN I WAS IN FORT WORTH AND I BUILT MY FIRST BIG MODEL, 
          [01:35:03]
I ASKED THE FIRE DEPARTMENT IF THERE WAS ANYTHING THEY REALLY LIKE, IF THEY COULD STEP INTO DEVELOPMENT WORLD AND JUST GET RID OF SOMETHING THEY HATED. BUT DOES ANYTHING COME TO MIND? AND THEY WERE LIKE CUL DE SACS. LIKE WE WOULD JUST OUTLAW CUL DE SACS BECAUSE THEY HAD THEY HAD STATIONS WHERE LIKE THERE WAS A HOUSE LIKE THREE QUARTERS OF A MILE FROM THE STATION. BUT BECAUSE OF THE WAY THE STREET NETWORK GOT LAID OUT, THEY HAD TO DRIVE FOUR MILES TO GET THERE. AND IT WAS IT WAS JUST SO CUMBERSOME. AND IT IT MADE ISSUES WITH THEM WHEN THEY WERE PLANNING OTHER FIRE STATIONS BECAUSE THEY WERE LIKE, THIS LOOKS TOO CLOSE TOGETHER TO HAVE TWO FIRE STATIONS. BUT BASED ON THE DRIVE TIMES AND THE STREET NETWORK, THIS IS HOW IT'S WORKING OUT. SO FOR WHAT IT'S WORTH, THAT'S WHAT FORT WORTH FIRE DEPARTMENT SAID TEN YEARS AGO. BUT WHAT WAS GETTING US WITH FATE IS WHEN YOU THINK ABOUT COST BURDEN, STREETS AND UTILITIES AND PEOPLE ARE THE MOST EXPENSIVE THINGS CITIES DO. STREETS ARE REALLY EXPENSIVE. 
          WHEN WE DO COST ESTIMATES FOR STREET REPLACEMENT IN FORT WORTH FIVE YEARS AGO, WE WERE ESTIMATING $1.2 MILLION PER LANE MILE, AND THE ASSUMPTION WAS AN 11 FOOT LANE. SO IF YOU'RE REQUIRED, TWO LANE ROADS IN YOUR NEW SUBDIVISIONS WAS 28FT WIDE. BY FINANCIAL TERMS, IT'S 3 MILLION. SO YOU'RE PAYING 6.6 MILLION PER MILE FOR THAT RESIDENTIAL STREET. MOST RESIDENTIAL DEVELOPMENTS ARE NOT THERE. BUT THE TRICK WAS THEY WANTED FATE, WANTED CONNECTIVITY. THEY DIDN'T WANT THE HIGH COST BURDEN. THE TRICK WAS ONCE WE SAW IT IS THAT, WELL, THE HIGH COST BURDEN IS REALLY COMING FROM REQUIRING VEHICULAR CONNECTIVITY, WHICH VEHICLES REALLY DON'T NEED THAT MUCH? PEDESTRIANS AND CYCLISTS BENEFIT A LOT FROM HAVING TO WALK 500FT LESS TO TAKE THEIR LEFT TURN. WHEN I'M RIDING IN MY CAR WITH THE AC ON AN EXTRA 500FT IS NOT A BIG DEAL FOR ME TO LIVE ON THAT. SO WHAT WE DID WAS WE CREATED A I THINK THE CORRECT TERM IS BIFURCATED BLOCK LENGTH REQUIREMENT. SO WE HAD MINIMUM BLOCK LENGTHS FOR VEHICLES WHICH WERE BIGGER AND WE HAD MINIMUM BLOCK LENGTHS FOR PEDESTRIANS, CYCLISTS. AND SO THE GOAL WAS TO ALLOW DEVELOPERS TO HAVE TO BUILD A HIGHLY CONNECTED NEIGHBORHOOD, BUT NOT HAVE TO BUILD VEHICLE STREETS EVERYWHERE, BECAUSE THOSE ARE REALLY EXPENSIVE. SO INSTEAD OF BUILDING A VEHICULAR STREET EVERY 500FT, THEY COULD BUILD A VEHICULAR STREET UP TO EVERY 1200 FEET. BUT THEY HAD TO HAVE AN ACCESS POINT EVERY 600FT. SO THEY COULD DO THEY COULD CUT THAT BLOCK IN HALF WITH A PEDESTRIAN BICYCLE ACCESS THAT HAD MISS ACCOMMODATIONS THROUGH IT. SO THEY DIDN'T HAVE TO THEY DIDN'T HAVE TO BUILD THE ROAD IN THE CITY, DIDN'T HAVE TO MAINTAIN IT 30 YEARS LATER, BUT YOU STILL HAD THE CONNECTIVITY THAT YOU WERE LOOKING FOR AS A CITY. SO THESE WERE SOME OF THE VISUAL EXERCISES WE WENT THROUGH WITH THEIR CITIZENS AND ELECTED OFFICIALS. THESE WERE THE BLOCK LAYOUTS OF DIFFERENT AREAS IN TOWN. THE GREEN AREAS ARE PLACES WHERE YOU COULD FEASIBLY GET RID OF A STREET AND REPLACE IT WITH A FISHER AND BICYCLE ACCESS, AND LOSE NO OVERALL CONNECTIVITY FOR THAT NEIGHBORHOOD. AND SO WE STARTED ADDING UP THESE DIFFERENT NEIGHBORHOODS. IF YOU REPLACE ALL THIS, THE AMOUNT OF GREEN MAINTENANCE YOU'RE GETTING RID OF IS X AMOUNT OF MONEY. THE OTHER THING THAT WAS ILLUSTRATIVE IS PEOPLE STARTED REALLY LIKING APARTMENTS A LOT BETTER, BECAUSE WHEN YOU LOOK AT THEIR INTERNAL STREET NETWORKS, IT'S ENTIRELY PRIVATE. THEY PAY FOR IT THEMSELVES. AND SO THERE'S A LOT OF CONNECTIVITY THAT COMES FROM COMMERCIAL DEVELOPMENTS AND APARTMENT DEVELOPMENTS. WHEN THEY DO DEVELOP LARGELY THAT THEY ALSO BUILD LOTS OF PRIVATE INFRASTRUCTURE, WHICH CAN BE NICE FOR THE CITIES FINANCIAL CONSTRAINTS. SO HERE YOU GO. SO THESE ARE APARTMENTS AND COMMERCIAL BUILDINGS. ORANGE REPRESENTED PRIVATELY MAINTAINED THOROUGHFARES. AND WE DON'T WE DON'T THINK ABOUT PARKING LOTS THAT WAY BUT. A CITY IS TWO BASIC SPACES. IT'S SPACES WHERE THINGS MOVE AND SPACES WHERE THINGS COME TO REST. AND A BLOCK IS DEFINED BY A BOUNDARY OF SPACE WHERE THINGS MOVE. SO WHEN YOU LOOK AT A PARKING LOT LIKE THIS, HOME DEPOT IS LIKE SEVEN BLOCKS OF PARKING LOT. IT'S JUST SEVEN VEHICULAR BLOCKS. IT'S JUST MADE FOR CARS. IT'S ALL PRIVATELY MAINTAINED, BUT IT'S STILL A HIGHLY CONNECTED SPOT. SO THAT'S WHAT WE DID FOR FAITH. 
          THAT WAS A COST SAVING MEASURE. IT ALSO ALLOWED THEM TO HAVE LESS SPACE TAKEN UP BY SETBACKS, BECAUSE SETBACKS ARE OFTEN MEASURED MORE DRAMATICALLY FROM A VEHICLE STREET THAN A PEDESTRIAN BICYCLE ACCESS ROUTE. SO THESE ARE JUST SOME BROAD EXAMPLES OF WAYS THAT AT LEAST FATE IMPLEMENTED THIS KIND OF DATA ANALYSIS IN THEIR ZONING REGULATIONS. THERE'S 1000 
          [01:40:04]
DIFFERENT WAYS TO DO IT. THERE'S SOMETHING YOU WANT TO KEEP TALKING ABOUT. I CAN KEEP COMING BACK. YOU KNOW, YOU CAN KEEP CHATTING. THERE'S THIS WAS A CURSORY OVERVIEW OF MISSOURI CITY'S DATA. THERE'S THE WHOLE PROCESS OF ALLOCATING COSTS OUT, WHICH HAS ITS OWN METHODOLOGY, WHICH IF YOU WANT TO STAY AND CHAT ABOUT THAT, WE CAN. BUT I'M GOING TO STOP THERE. AND IF YOU GUYS HAVE ANY QUESTIONS OR DISCUSSION POINTS, PLEASE LET ME FOCUS ON THIS ONE. YOU SAID YOU YOU HAVE A SLIDE. COLLECTING DATA AND THERE IS A LITTLE MORE, YOU KNOW, I CAN GIVE YOU THIS DATA SET. THERE ARE SOME THIS DATA SET WAS BUILT. IT WAS A EIGHT COUNTY DATA SET. SO IT WAS PARIS, BRAZORIA, FORT BEND, GALVESTON AND THEN THE DFW FOR TARRANT, DALLAS, DENTON AND COLLIN. SO WE DIDN'T GO IN AND CLEAN VERY WELL. SO LIKE THERE WAS A THERE WAS A COMMERCIAL CENTER THAT WAS DROPPED FOR SOME DATA SPECIFICALLY. THERE'S A LOT OF CLEANUP THAT GOES INTO IT. 
          AND SOMETIMES YOU CLEAN IT UP AND IT CAPTURES 90% OF IT, AND SOMETHING HAPPENS WITH 10%. SO I CAN I CAN GIVE YOU GUYS ACCESS TO THE MISSOURI CITY DATA AND, YOU KNOW. ABSOLUTELY. 
          ABSOLUTELY. IT'S JUST GOING TO COME WITH A LOT OF CAVEATS. RIGHT? I'M AN ENGINEER. OH YEAH. 
          CERTAINLY. YEAH. SIMILAR TO MY COLLEAGUE, THIS MADE ME FEEL LIKE I WAS BACK IN GRAD SCHOOL. 
          SO THANK YOU FOR THAT. ONE OF MY FAVORITE SEASONS. YEAH, BUT I HAD A QUESTION. FISCAL ANALYSIS IS A CURRENTLY IN OUR COMPREHENSIVE PLAN FROM 2017. IT IS NOT OKAY. SO 100% NEED THAT GOING FORWARD. AND I, I MEAN I'LL LEAVE THAT UP TO STAFF AND CITY COUNCIL TO HAVE THIS TYPE OF ANALYSIS TO COME BACK TO BOTH THIS COMMISSION AS WELL AS CITY COUNCIL IS NEEDED, ESPECIALLY PLANNING. I DON'T KNOW WHY IT'S DOING THAT, ESPECIALLY WHERE WE'RE TRYING TO GO. SO YES. AND THEN ALSO ECHOING COMMISSIONER PETERSON'S COMMENT, IF THERE'S A WAY THAT IN OUR UPCOMING COMP PLAN UPDATES TO THE PUBLIC, IF WE CAN HAVE A TRUNCATED VERSION OF THIS INCLUDED AT SOME HIGH LEVEL, HERE ARE THE THINGS WE'RE THINKING ABOUT MOVING FORWARD ON HOW WAYS THAT WE CAN GO BACK TO THAT DENSITY THING. AND THEN ALSO, IF I COULD REQUEST VERY SPECIFIC MISSOURI CITY LIKE REDEVELOPMENT SUGGESTIONS FOR OUR, IN MY OPINION, HIGHLY DENSELY POPULATED AREAS AND WHERE WE CAN REDEVELOP THAT TO BLEND COMMERCIAL USE AND THE UNDERDEVELOPED LAND. THERE WAS A SLIDE YOU HAD WITH LAND USE THAT SUGGESTIONS. AND I THINK IN THE GRAY IT WAS UNDEVELOPED. THAT'S SOMETHING THAT I THINK WOULD BE BENEFICIAL TO US. YOU DON'T HAVE TO GO BACK TO THE SLIDES. BUT YEAH, I WOULD I WOULD APPRECIATE THAT. AND THEN ONE LAST QUESTION. I'M SORRY BECAUSE I THOUGHT ABOUT IT. IS ANY OF YOUR TRAVELS WITH LOOKING AT CITIES HAS REVENUE OR HAS IT HAS REVENUE CHANGED OR LAND USE BEEN IMPACTED BY HEALTHCARE FACILITIES IN CITIES? YEAH, INDIRECTLY. SO A LOT OF HOSPITALS ARE TAX EXEMPT. BUT I'VE ALSO. THERE IS A HOUSING TREND AROUND HOSPITALS THAT DOCTORS AND HOSPITAL STAFF, IF THEY CAN, WILL LIVE CLOSE TO WORK AND THEY TEND TO BE WELL-PAYING STABLE JOBS. SO. EVEN IN I'M THINKING OF SOME OF THE INNER CITY HOSPITALS, WE DON'T HAVE TO GO INTO IT NOW. YEAH. STAFF KNOWS WHY ASK THAT QUESTION INDIRECT. IT'S A IT'S A 24 HOUR WORK CYCLE. SO IT'S A GOOD PLACE FOR LIKE ADJACENT RESTAURANTS OR 24 HOUR SERVICES TO HAVE A CONSTANT. I WAS JUST CURIOUS IF THERE'S ANY LIKE MATERIAL IMPACT, LIKE WHEN, WHEN A HOSPITAL OR SOME TYPE OF HEALTHCARE SYSTEM COMES IN, X HAPPENS WITH LAND USE OR REVENUE IF WE DON'T HAVE THAT, FINE. BUT I WAS JUST CURIOUS. WELL, I CAN SAY THAT TYPICALLY HEALTHCARE FACILITIES ARE HIGH VALUE. THEY HAVE A LOT OF REALLY EXPENSIVE STUFF IN THEM, AND THEY'RE TYPICALLY NICE BUILDINGS. ANYTIME YOU GET A HIGH VALUE, NICE BUILDING, YOU COME IN SOMEWHERE. IT'S GOING TO HAVE AN INCREASED VALUE FOOTPRINT AROUND IT. THAT'S JUST BUT THAT'S ALSO TRUE FOR LIKE WHEN APARTMENTS COME IN. SO IF Y'ALL GET NEW APARTMENTS. THEY'RE NOT LIKELY TO BE AFFORDABLE, LIKE BRAND NEW APARTMENTS ARE NOT VERY AFFORDABLE, AND THEY'RE TYPICALLY VERY EXPENSIVE BUILDINGS TO BUILD. AND SO THEY WILL IMPACT THE PROPERTIES AROUND IT. TYPICALLY INCREASING THE DEMAND ON THOSE PROPERTIES 
          [01:45:05]
OR THE POTENTIAL FOR DEVELOPMENT ON THOSE PROPERTIES. BECAUSE WHEN YOU BUILD WE TALKED ABOUT KIND OF THE PATTERNS YOU SEE WHEN YOU BUILD SUBURBAN DEVELOPMENT. YOU KNOW, THE COMMERCIAL COMES IN SLOWLY OVER TIME, BUILDING LOTS OF APARTMENTS OR HIGH DENSITY HOUSING IS JUST DOING THAT MUCH FASTER. AND SO IF YOU GET 2 OR 3 APARTMENT COMPLEXES IN RIGHT NEXT TO EACH OTHER, THAT'S TYPICALLY YOU'LL SEE ACADEMIES RIGHT NEXT TO LIKE 2 OR 3 APARTMENT COMPLEXES. AND IT'S TYPICALLY THEY KIND OF COME IN TOGETHER LIKE THOSE THOSE APARTMENT COMPLEXES COME IN. THERE'S A LOT OF THOSE BIG BOX STORES WILL BE PRETTY CLOSE TO IT BECAUSE IT'S A CAPTURED AUDIENCE. I MEAN, IT'S RIGHT THERE AND IT. YEAH. SO THE STUFF LIKE HOSPITALS AND HEALTHCARE FACILITIES WILL HAVE A SIMILAR IMPACT. HIGH VALUE BUILDINGS WILL INCREASE VALUE. YOU MENTIONED VACANT PROPERTIES, INNER CITY VACANT PROPERTIES ARE A PRETTY BIG COST BURDEN BECAUSE THEY ARE RECEIVING THE FULL SUITE OF CITY SERVICES. SO THEY HAVE A FULL COST BURDEN, BUT THEY'RE NOT GENERATING VERY MUCH REVENUE AT ALL. SO I'VE WORKED WITH A COUPLE CITIES THAT THE REAL TAKEAWAY WAS LIKE, YOU JUST YOU NEED TO FOCUS ON YOUR YOUR INNER CITY VACANCY AND YOU CAN JUST SOLVE SOME OF THESE ISSUES. IF YOU CAN GET ROOFTOPS HERE INSTEAD OF ON THE BOUNDARIES, YOU'LL FLIP YOUR YOUR REVENUE PROJECTIONS PRETTY QUICK. THANK YOU. THANK YOU. ANY OTHER YOU HAD MENTIONED TAX ABATEMENTS AND YOU SAID THAT THE TEN YEAR PERIOD WHERE THERE'S NO REVENUE, IS THERE CALCULUS AROUND THE TAX ABATEMENTS THAT IS POSITIVE? I ESPECIALLY IN THE REDEVELOPMENT WORLD, I MEAN, WHEN YOU DRIVE THESE VACANT BUILDINGS, YOU HAVE WHAT IS IN IT FOR THEM. IF WE ASK THEM TO COME HERE, IF, IF IT'S JUST A NEGATIVE. I HAD A, I HAD A REALLY HARD TIME WITH, WITH TAX ABATEMENTS. I DON'T HAVE AN ECONOMIC DEVELOPMENT BACKGROUND, BUT I'M FAMILIAR WITH SOME OF THE MECHANISMS. BUT I COULD NEVER GET LIKE IN FORT WORTH. I WORKED CLOSELY WITH OUR ECONOMIC DEVELOPMENT FOLKS, BUT I CAN NEVER. THE STRAIGHTEST ANSWER I EVER GOT WAS I ASKED HIM. I WAS LIKE, WHAT IS THE ROI ON THESE ABATEMENTS? BECAUSE WE WERE WE WERE HANDING THEM OUT AND THESE WERE LIKE TEN, 15 YEAR, 90% ABATEMENTS. I MEAN, IT'S A HUGE AMOUNT OF REVENUE. AND I SAID, WHAT DO WE WIN? LIKE WHAT ARE WE GETTING? AND THEY WOULD SAY JOBS. I'M LIKE, WELL, I DON'T I DON'T SEE A BULLET IN OUR BUDGET ABOUT JOBS GENERATING REVENUE. LIKE WHAT IS A JOB DO FOR OUR BUDGET. AND THEY SAID, WELL, WHEN YOU BRING IN JOBS, YOU BRING IN PEOPLE AND THEY BUY HOMES, AND THEN WE GET TAXES FROM THE HOMES AND THEN THEY BUY STUFF FROM YOUR RETAIL SALES TAXES. I SAID, OKAY, SO IN FORT WORTH, WE HAVE OUR INDUSTRIAL, ONE OF OUR BIG INDUSTRIAL AREAS THAT WE WERE PICKING OUT THESE ABATEMENTS IS IN FAR, FAR NORTH FORT WORTH, SURROUNDED BY REALLY NICE NEW SATELLITE CITIES WITH REALLY BRAND NEW SCHOOL DISTRICTS. NOBODY WANTS TO BE IN FORT WORTH ISD. SO IF YOU PUT A BRAND NEW INDUSTRIAL SITE UP THERE THAT'S GENERATING ZERO PROPERTY TAXES FOR 15 YEARS AND YOU'RE EXPECTING TO WIN OFF THE HOUSES THE EMPLOYEES BUY, YOU'RE NOT GUARANTEEING THEY BUY FORT WORTH HOUSES, AND YOU'RE NOT GUARANTEED THAT THEY SHOT FROM FORT WORTH BUSINESSES UNLESS THEY'RE BUYING IN THE COOL PARTS OF FORT WORTH THAT ARE DOWNTOWN AND COMMUTING 30 MINUTES. THEY'RE BUYING IN KELLER, THEY'RE BUYING IN NORTH RICHLAND HILLS, THEY'RE BUYING IN THOSE SCHOOL DISTRICTS. AND SO THEN, LIKE, SO IF THEY DO THAT, WHAT'S THE WIN? AND I COULD NEVER GET THERE WAS NEVER ANY FOLLOW UP FROM THAT. IT WAS JUST IT WAS JOBS. AND I STILL TO THIS DAY DON'T KNOW HOW JOBS GENERATE REVENUE DIRECTLY FOR A CITY. WHAT WAS HAPPENING IS THAT THOSE BUSINESSES WOULD STAY THERE FOR 15 YEARS, AND THEY WERE IN NO POSITION TO HAVE THEIR PROPERTY TAXES GO UP 100% OVERNIGHT. AND SO THEY WOULD YOU'RE 10 TO 12, COME BACK TO THE CITY AND BE LIKE, HEY, WE GOT TO DO SOMETHING ABOUT THIS PROPERTY TAX BILL THAT'S COMING DUE BECAUSE WE CAN'T PAY THAT. AND THE CITY WOULD BE LIKE, THAT WAS THE DEAL. AND THEY SAY, WELL, WE KNOW IT WAS THE DEAL. BUT IRVING JUST DEVELOPED A NEW INDUSTRIAL PARK AND THEY'RE OFFERING 12 YEAR ABATEMENTS. AND WE COULD GO BUILD A BUILDING OVER THERE FOR HALF OF WHAT WE'D BE PAYING IN PROPERTY TAXES. SO THEY'D LEAVE. 
          THEY'D STAY FOR FREE AND LEAVE AFTER 15 YEARS. SO I NEVER IT WAS REALLY HARD FOR ME TO QUANTIFY WHAT THE WIN IS WITH THESE TAX ABATEMENTS. I THE MATH THAT I SAW IS I'D RATHER IF WE'RE GOING TO GIVE SOMETHING AWAY FOR FREE, I'D RATHER GIVE A HOUSE IN MY CITY AWAY FOR FREE, THAT THEY'RE GOING TO IMMEDIATELY START PAYING TAXES ON AND SHOP IN MY CITY'S BUSINESSES AND GET THE MONEY THAT WAY. BECAUSE IF YOU CALL ME WHEN YOU RUN FOR MAYOR, YOU'LL 
          [01:50:06]
BE WAITING A LONG TIME FOR THAT PHONE CALL. BECAUSE, YOU KNOW, YOU BUILD THOSE ROOFTOPS AND YOU CREATE YOUR OWN COMMERCIAL DEMAND. AND THEN THE COMMERCIAL AND INDUSTRIAL COMES IN ON ITS OWN. YOU KNOW, THOSE COMMERCIAL WANTS TO COME IN AND MEET DEMAND. THAT'S HOW THEY WIN. WE JUST HAVE TO CREATE THE DEMAND FOR IT. AND THE JOBS DON'T DO THAT. ROOFTOPS. I'M SURE IT HAS MADE A LOT OF ECONOMIC DEVELOPMENT, PEOPLE REALLY ANGRY AND FRUSTRATED. IT MAKES SENSE. 
          THAT'S WHY I ASKED. THANK YOU. SURE. ANY OTHER. THAT'S WHY I HAVE A QUESTION BASED ON WHAT YOU SAID WITH US BEING ON THE EDGE, HOW WOULD YOU DEAL TO BRING DRIVING THAT CONVERSION? WHAT DO YOU MEAN? LIKE AS A, I MEAN, THE, THE THING I ALWAYS HOPE CITIES DO IS GET A REALLY FOCUSED, INTENTIONAL WAY OF DEVELOPING ROOFTOPS. SO LIKE AND IT'S SMALL THINGS SO LIKE ACCESSORY DWELLING UNITS ALLOWING THEM IN PLACES WHERE IT'S APPROPRIATE, YOU KNOW GARAGE APARTMENTS. FOR OLDER AREAS OF TOWN THAT HAVE LARGE LOTS LIKE WE USED TO BE ABLE TO, YOU KNOW, IN THE 20S AND 30S, ALL THE LOTS WERE TINY AND YOU WOULD BUY TWO OR 3 OR 4 OR HOWEVER MANY, LIKE SOME OF THOSE ARE SUBDIVIDABLE IF THEY REDEVELOP BECAUSE THEY'RE BIG ENOUGH PLACES WHERE A LOT IS SUBDIVIDABLE ASSESSING, LIKE, IS THAT SOMETHING THAT'S WORTH IT RIGHT NOW TO ALLOW THAT KIND OF REDEVELOPMENT? IF YOU HAVE COMMERCIAL CORRIDORS THAT CAN REDEVELOP, LIKE GETTING ROOFTOPS IN THERE IS USUALLY PEOPLE AREN'T GOING TO BE TOO MAD ABOUT, LIKE AN OLD GROCERY STORE GETTING KNOCKED DOWN IN A NEW COMMERCIAL BUILDING, GETTING BUILT WITH APARTMENTS ON THE SAME FOOTPRINT LIKE IT DOESN'T CHANGE THEIR DAILY LIFE THAT MUCH. SO DOING STUFF LIKE THAT WITH ROOFTOPS, IT'S HARD IN TEXAS TO DO ESTHETIC STUFF, BUT LIKE, LIKE ZONING FOR DUPLEXES IS OFTEN REALLY HARD BECAUSE PEOPLE'S PERSONAL EXPERIENCE WITH DUPLEXES IS OFTEN COLLEGE AND THEY'RE NOT VERY NICE, YOU KNOW, OR LIKE, THEY'RE REALLY OLD ONES IN TOWN THAT WERE BUILT IN THE 70S. THEY'RE MAYBE NOT REALLY NICE. AND SO THEY JUST PICTURE MORE OF THAT, OR LIKE THEY PICTURE SOMEONE LIVING NEXT TO THEM WHO IS BEHAVING LIKE THEY DID IN COLLEGE. LIKE THEY DON'T WANT THAT. BUT THERE'S LIKE YOU CAN FIND DUPLEXES IN BOULDER THAT I'LL NEVER BE ABLE TO AFFORD, YOU KNOW, LIKE THERE'S REALLY NICE WAYS TO BUILD ALL THESE DIFFERENT KIND OF RESIDENTIAL PRODUCTS. THERE ARE REALLY NICE, LIKE, I'VE SEEN REALLY NICE MOBILE HOME PARKS, LIKE THE STANDARDS IN THE PARK ARE REALLY HIGH. AND SO YOU COULD LIVE IN THAT MOBILE HOME PARK AND ALL THE OTHER MOBILE HOMES ARE REALLY NICE, AND THE MANAGEMENT COMPANY IS REALLY GOOD AND IT'S NOT A BAD OPTION. IT'S A REALLY AFFORDABLE OPTION IN TOWN, BUT IT'S YOU HAVE TO CAST LIKE THAT VISION IN A POSITIVE LIGHT AND GIVE PEOPLE AN EXAMPLE TO SUPPORT. BECAUSE OFTENTIMES IF YOU JUST SAY DUPLEX OR APARTMENTS, THEY'RE GOING TO IMMEDIATELY THINK OF THE WORST EXAMPLE LIKE THEY'RE THEIR OWN WORST EXPERIENCE. 
          ANYTHING ELSE? WELL, I JUST WANT TO TAKE THIS OPPORTUNITY ON BEHALF OF THE COMMISSION AND STAFF TO THANK YOU FOR COMING AND DOING AND PRESENTING SUCH AN AWESOME PRESENTATION. VERY INFORMATIVE. THANK YOU. I HAD A GREAT TIME. OH, AND I HAVE ONE OTHER QUESTION. YES, WELL, CITY COUNCIL THEN GET THE SAME PRESENTATION THAT WE GOT. WE WILL SHARE ALL THE INFORMATION ACROSS THE BOARD. SO I'LL LEAVE YOU ALL THE SLIDES. MY CONTACT INFO IS ON THERE. IF YOU HAVE QUESTIONS OR ANYTHING PERCOLATES OR COUNCIL MEMBER OR STAFF WHO ISN'T HERE HAVE QUESTIONS, FEEL FREE TO REACH OUT FOR ME. NOT VERY FAR AWAY. AND THIS IS, YOU KNOW, ONE OF MY FAVORITE THINGS TO TALK ABOUT. SO I APPRECIATE ALL YOUR TIME. THANK YOU AGAIN. GOOD NIGHT. THANK YOU. I GUESS WE DO. WE NEED TO MAKE MOTION TO GO INTO CLOSED EXECUTIVE SESSION. YES, PLEASE. OKAY. WE NEED TO MAKE A MOTION. YES, YES. COME ON. TO GO INTO CLOSED EXECUTIVE SESSION. YEAH. WE DON'T WE DON'T NEED TO ADJOURN. OH WE SO WE'RE GOOD. SO WE JUST NEED A MOTION TO ADJOURN. SO MOVED. THANK YOU. SECOND BY A.
* This transcript was compiled from uncorrected Closed Captioning.