[1. CALL TO ORDER AND ROLL CALL OF MEMBERS]
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THE CITY COUNCIL OF THE CITY OF LEAGUE CITY WILL NOW COME TO ORDER IN WORK SESSION ON MARCH 26TH, 2024 AT 5:00 PM UH, ROLL CALL HANDY.
[2. PUBLIC COMMENTS]
START WITH PUBLIC COMMENTS.MAYOR, YOU WANT HER TIME FOR YOUR TIME? THANK YOU, MAYOR AND CITY COUNCIL MEMBERS.
UH, MY NAME IS JOSEPHINE SULLIVAN.
UH, I AM, UH, THE CEO AND FOUNDER OF THE CHRISTINA SULLIVAN FOUNDATION.
MORE IMPORTANTLY, WE HAVE BEEN, UH, WITH YOU FOR THE LAST FIVE YEARS IN, UH, OUR DEVELOPMENT OF OUR VISION FOR THE SPORTS CENTER AND RESEARCH INSTITUTE, ALL INCLUSIVE FOR INCLUSIVITY.
UM, THE PARK ITSELF, UH, WE HAD STARTED OUT WITH SEVEN ACRES.
WE ACCOMMODATED TO FOUR ACRES.
UM, THE PRO FORMA HAS BEEN UPDATED TO SHOW HOW MUCH WE CONTRIBUTE TO OUR CITY.
UH, I THINK IT'S THE FIRST FIVE YEARS.
THERE'S, I MEAN, THE FIRST YEAR, UH, IT'S, UH, 5.6 MILLION AND IT GOES UP FROM THERE.
BUT I'LL LET CRAIG, UH, SPEAK ON THAT.
WHAT I AM MOST EXCITED ABOUT IS, UH, ON JANUARY 25TH, I PRESENTED ALONG WITH MR. SULLIVAN, UH, TO THE GOVERNOR'S COMMITTEE WITH PEOPLE WITH DISABILITIES IN BEAUMONT, TEXAS AT THE QUARTERLY MEETING.
AND, UH, WE EXPLAINED WHAT WAS COMING TO LEAGUE CITY, AND THEY WERE, UH, MORE THAN A STATIC.
UM, WE ACTUALLY SHARED, UM, THAT IT WOULD BE BENEFICIAL IF WE COULD DO A SUBCOMMITTEE, UM, IN RECREATION.
AND, UH, WE WERE VERY SURPRISED AND VERY EXCITED
AND HE ASKED FOR, UH, A GENTLEMAN THAT WAS ON THE SCREEN.
THERE WERE HUNDREDS THAT WERE IN AND, UM, FROM ALL OVER TEXAS, AND HE IS A PARALYMPIAN ARCHER.
AND THEY ASKED HIM, WOULD YOU BE THE CHAIR OF THIS? AND HE SAID, ENTHUSIASTICALLY.
SO IMMEDIATELY, THAT WAS, UH, CHOSEN AND DONE THAT DAY, AND YOU WERE LOOKING AT THE VICE CHAIR OF THE GOVERNOR'S COMMITTEE FOR PEOPLE WITH DISABILITIES, ADAPTIVE SPORTS RECREATION, AND PARALYMPIANS TO THE GREAT STATE OF TEXAS.
AND I'M SO PROUD TO BE IN THAT POSITION, AND I KNOW THAT, UH, TOGETHER WITH THIS, UH, CENTER FOR INCLUSIVITY, UH, THAT'S FOR EVERYBODY TO WALK THROUGH THE DOOR, UM, UH, WILL BE AMAZING FOR RESEARCH AND ECONOMICALLY, UH, TO BRING ACADEMIA HERE.
THE ECONOMICS ARE, ARE, ARE, THEY'RE ALL HERE FOR YOU TO SEE.
UM, I CAN'T THANK YOU ENOUGH FOR WHAT YOU DO.
I KNOW WHAT YOU DO IS NOT EASY.
BUT THE PEOPLE OF LEAGUE CITY AND THE SURROUNDING AREAS, UM, DESERVE THIS.
THEY DESERVE A PLACE THAT THEY CAN HAVE A DISASTER RELIEF CENTER.
WE'RE MAKING IT, UH, A DISASTER RELIEF CENTER THAT WILL HOLD 2200 PEOPLE.
UH, BECAUSE EIGHT YEARS AGO, WE SAW THE DEVASTATION AND WE WERE ASSISTING THOSE PEOPLE.
SO WE ADDED THAT TO THE BUILDING, AND I CAN'T THANK YOU ENOUGH.
I AM THE COO OF THE CHRISTINA SULLIVAN FOUNDATION.
AND AS OF, UH, UH, JOSEPHINE HAD POINTED OUT, WE HAVE, UH, RE REPLICATED AND, AND BROUGHT TO, UH, UH, IN MARCH, UH, A STANDARD OF WHAT THE CENTER WILL BRING AND WHAT IT WILL BRING TO, UH, UH, IN THE ECONOMIC PHARMA IT, THAT IT WILL BRING TO THE CITY OF LEAGUE CITY.
WE'RE PROUD THAT THAT IS PART OF IT.
UH, WE HAVE ADOPTED, UH, THE FOUR, UH, THE FOUR ACRE, UH, SITE.
AND, YOU KNOW, THE THING THAT WE'RE EXCITED ABOUT AS WE MOVE FORWARD, YOU KNOW, WE'RE WILLING TO, UH, PUT STAKES IN THE GROUND AS SOON
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AS POSSIBLE, UH, TO PERPETUATE THIS AND BRING IT FORWARD.FOR LEAGUE CITY, WE'RE ON THE OUTER EDGE OF THE DEVELOPMENT.
AND WITHOUT OUTER EDGE, WE HAVE THE ABILITY TO, TO, WITHOUT INTERFERING WITH THE REST OF THE REST OF THE DEVELOPMENT.
WE'D LIKE AN OPPORTUNITY TO, UH, UH, START THE, UH, UH, RE RE THE SPORTS CENTER AND RESEARCH INSTITUTE.
UTMB WILL STILL BRAND THE BUILDING.
THEY'LL OCCUPY 26,000 SQUARE FEET WITHIN THE BUILDING.
UH, SO THERE'LL BE A, UH, A GREAT, UH, UH, RESOURCE FOR THE CITY.
NOT ONLY THEY'RE ADDING, ADDING A CLINIC THAT WILL GO INTO IT AS WELL.
UH, BUT I GUESS THE ECONOMIC PROFORMA, AS JOSEPHINE WAS POINTING OUT, UH, APOLOGIZE.
THERE'S ALWAYS BEEN A QUESTION OF WHAT ASSETS OR WHAT IT WOULD BRING TO, OH, YOU HANG.
UH, THE TOTAL REVENUE, UH, THAT WOULD BE GENERATED IN THE FIRST YEAR WOULD BE $5.7 MILLION.
UH, THE, THE, THE ASK OF WHAT IT WOULD BRING TO THE ECONOMIC IMPACT TO, UH, LEAGUE CITY IS $5.8 MILLION.
UH, IN YEAR TWO, IT'S SIX, UH, SIX POINT I NEED GLASSES, 6.6, 7.3, UH, 7.3 BEGINS TO LEVEL OFF.
SO IF IT'S ALWAYS BEEN A QUESTION, EVERYBODY ASKS, WELL, WHAT IS IT GONNA BRING? IT'S GONNA BRING ECONOMIC BENEFIT, IT'S GONNA BRING TOURISM TO, TO LEAGUE CITY.
UH, WE'RE PROUD TO BE A PART OF THAT, AND WE NEED THE COUNCIL TO SIT THERE AND, AND SUPPORT THIS SO WE CAN BRING THIS TOGETHER AND MAKE SURE IT'S PART OF THE LEAGUE CITY IN, IN TEXAS.
THE GOVERNOR'S, UH, COUNCIL, UH, THAT, UH, WE'RE BOTH, UH, I'M ACTUALLY, UH, SEATED AS A CHAIR.
UH, WE'RE ALREADY WORKING TOWARDS LEGISLATION THAT WILL BRING, UH, UH, PARALYMPIC SPORTS TO LEAGUE CITY.
AND SO WE'RE PROUD TO DO THAT AND LOOK FORWARD TO WORKING WITH YOU.
CHUCK DEFALCO, 2118 EASTLAND COURT.
I DON'T HAVE ANY DETAILS ON THE RIO PROJECT.
I'M ASSUMING I'M GONNA GET SOME OF THAT IN A LITTLE BIT.
SO I'LL ONLY TALK ABOUT SOME HIGH LEVEL PUBLIC POLICY CONSIDERATIONS.
SO I BEGAN MY JOURNEY INTO LEAGUE CITY PROPERTY DEVELOPMENT PUBLIC POLICY IN 1999 WHEN THERE WAS A ZONING ISSUE NEAR THE BRITTANY BAY SUBDIVISION.
UM, I WAS ALSO A MUD BOARD MEMBER FOR 23 YEARS.
UM, WE HAD NOT, NOT EVERY DAY, BUT OFF EVERY NOW AND THEN WE'D HAVE A PROPERTY DEVELOPER WANTING TO, WANTING SOME INCENTIVES, UM, ANNEXATION OR SOMETHING.
UM, I WAS IN THE LEAGUE CITY GROWTH AND DEVELOPMENT COMMITTEE, 2012 TO 13 TIMEFRAME.
STILL HAVE THE NOTES FROM ALL THAT.
UM, THE POINT OF ALL ME SAYING ALL THAT IS THAT I'VE BEEN AROUND THE BLOCK.
I'M NOT TAKING A PAGE FROM SOMEBODY'S PARTY OR SOMEBODY'S, UH, AGENDA.
UM, I LIVED WHAT I'M TALKING ABOUT NOW.
SOME SAY THAT WE'VE LOST ENTERTAINMENT VENUES TO SOME OF OUR SURROUNDING CLEAR LAKE CITIES.
UM, WE LOST THE PROPERTY TAX ON THAT, THE JOBS FROM THOSE, BUT REALLY AT WHAT COST I, HOW MANY WHEELBARROWS FULL OF MONEY DID CERTAIN CITIES AROUND CLEAR LAKE GIVE TO THOSE PRIVATE ENTERTAINMENT VENUES TO BUILD THERE? SO I DON'T THINK WE LOST THEM.
UM, SO I THINK PROPERTY DEVELOPMENT INCENTIVES SHOULD BE, FROM A PUBLIC POLICY POINT OF VIEW, GUILTY UNTIL PROVEN INNOCENT, AND THAT LEAGUE CITY PROPERTY DEVELOPMENT SHOULD PAY ITS OWN WAY.
I HAVE ATTENDED 1990 9.9% OF THE MEETINGS WE'VE HAD OVER THE PAST 20 OR 25 YEARS REGARDING THE, WHATEVER WE'RE CALLING IT, THE STRATEGIC PLANNING SESSIONS FOR CITY COUNCIL OR PLANNING SESSIONS, OR THE RETREAT, WHATEVER IT IS WE CALL IT.
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I'VE BEEN THERE WITH YOU GUYS, IF I REMEMBER CORRECTLY, AND, AND YOU TELL ME IF I'M WRONG, A LARGE PORTION OF THOSE DISCUSSIONS HAD TO DO WITH THE IMPORTANCE OF CITIZENS.SO I WOULD ASK YOU, I CARE ENOUGH ABOUT THIS CITY TO TAKE TIME TO, TO BE HERE.
WHAT POSITION HAVE YOU PUT ME IN AS A CITIZEN? WHO CARES? THERE IS NO INFORMATION AVAILABLE ON PROJECT RIO.
I ACTUALLY GOOGLED IT, AND YOU KNOW WHAT? I FOUND, UM, REINTEGRATION OF OFFENDERS
I MEAN, I HOPE IT'S NOT RIGHT.
SO THE ONLY OTHER LOGICAL CONCLUSION I COULD MAKE IS, WELL, POSSIBLY THIS IS THE NEXT VERSION, OR THIS IS EPIC ON STEROIDS, OR THIS IS A, UH, A RECLASSIFIED EPIC.
AND SO I WOULD LIKE SOME OF YOU, ALL OF YOU, ONE OF YOU TO SIT DOWN WITH ME LATER AND EXPLAIN TO ME HOW I CAN, AS A CARING CITIZEN, MAKE REASONABLE COMMENTS AT A FORUM LIKE THIS WHEN I HAVE BEEN PROVIDED NO INFORMATION, AND I'M SMART ENOUGH, AND I'M AN ADULT ENOUGH THAT IF YOU PROVIDE ME SOMETHING AND YOU MARK DRAFT, I'LL UNDERSTAND THAT THAT WILL JUST GIVE ME SOMETHING TO LOOK AT.
SO I DON'T HAVE ANYTHING TO LOOK AT.
YOU HAVE ASKED US TO SPEAK BEFORE THE PRESENTATION.
AND SO, LIKE, CHUCK, OTHER THAN JUST TALKING GENERALITIES, I CAN'T IMAGINE WHAT I CAN ADD TO THIS EXCEPT TO SAY I AS A CITIZEN, I HOPE MY, MY OTHER, UM, CITIZEN FRIENDS, UM, EXPECT BETTER TREATMENT FROM YOU ALL.
IT, YOU KNOW, WE WANNA BE, I WANNA BE ENGAGED.
BUT YOU'VE GOTTA GIVE US THE TOOLS TO HELP, BECAUSE IF WE ASK A QUESTION THAT MAKES YOU UNCOMFORTABLE, BETTER, WE ASK IT NOW THAN LATER.
AND, AND I THINK TO BE ON THE FRONT END OF SOMETHING LIKE THIS AND TO BE ABLE TO EXPRESS THE CONCERNS WE HAVE, I MEAN, THEY'RE ALL THE TYPICAL THINGS.
I DON'T EVEN KNOW WHERE THIS THING IS LOCATED.
YOU KNOW, WE'VE HEARD ABOUT THE SPORTSPLEX.
I KNOW THAT WE HAD MORE UNKNOWNS THAN KNOWNS WITH EPIC, BUT AT LEAST THERE WERE SOME OPPORTUNITIES FOR PEOPLE LIKE ME TO BE ENGAGED.
AND I JUST RESPECTFULLY ASK, WHY TREAT WORKSHOPS DIFFERENTLY THAN CITY COUNCIL? GIVE US INFORMATION.
WE'RE ABOUT TO DO THAT WHOLE PRESENTATION.
SO CAN I ASK YOU THIS? GIVE DO THE PRESENTATION AND THEN, UH, SORRY ABOUT THAT.
AND THIS IS THE FIRST OF MANY, MANY PRESENTATIONS, AND WE'RE NOT VOTING ON ANYTHING OR MOVING ANYWHERE.
SO WE PROBABLY HAVE SIX TO EIGHT TO A YEAR AHEAD OF THIS.
SO THAT'S WHY WE'RE HAVING THIS PRESENTATION TONIGHT.
[3. PRESENTATION AND DISCUSSION REGARDING PROJECT RIO FEASIBILITY STUDY]
THEN WE'LL DO THE PRESENTATION AND DISCUSSION REGARDING PROJECT RIO, FEASIBILITY STUDY, MAYOR AND COUNCIL, PLEASURE TO BE WITH YOU HERE TONIGHT.AND VERY MUCH A PLEASURE TO FINALLY ARRIVE WITH THIS, UH, FEASIBILITY AND MARKET ANALYSIS REPORT.
I AM GOING TO INTRODUCE JOHN MCGRAW FROM RIVER CADIS.
AND, UH, HE WILL HAVE, UH, THE OPPORTUNITY TO INTRODUCE THE OTHER PARTIES TO THE DISCUSSION, UH, TONIGHT.
WE ALSO HAVE, UH, ROB DEN ONLINE.
YOU'LL SEE HIM BEHIND YOU AND FRONT OF YOU.
HOW IS EVERYBODY? UH, MY NAME'S JOHN MCGRAW.
UM, CAN YOU GUYS HEAR ME OKAY.
JOHN MCGRAW RIVER CAS DEVELOPMENT, UH, RIVER CA GROUP, UM, FROM, UH, LANSING, MICHIGAN.
IT'S, UH, IT'S BEEN A LONG TIME COMING, UH, VERY EXCITED AND, AND GRATEFUL TO BE HERE TONIGHT.
UH, SO TONIGHT IS NOT AS MUCH ABOUT ME, BUT I HAD THE CHANCE TO INTRODUCE MYSELF, UH, BECAUSE I HAVEN'T BEEN ABLE TO YET.
AND THIS IS A BIG PROJECT, OR A POTENTIALLY BIG PROJECT, UH, AND WANTED TO GIVE YOU A LITTLE BIT OF BACKGROUND ABOUT WHO I AM, WHO OUR COMPANY IS, WHAT WE'VE DONE, THE, UH, PROJECT TEAM THAT WE'VE PUT TOGETHER, AND THEN ALLOW FOR QUESTIONS LATER TONIGHT.
SO TONIGHT I'M GONNA GIVE A QUICK LITTLE INTRODUCTION OF WHO WE ARE, HOW WE ARRIVED HERE, AND THEN WE HAVE HUNTING ASSOCIATES WITH US TO EXPLAIN A FEASIBILITY STUDY THAT WE'VE BEEN GOING OVER, UM, FOR THE BETTER PART OF SIX MONTHS OR SO.
SO, A LITTLE BIT ABOUT RIVER CADIS.
UH, AGAIN, WE'RE BASED OUT OF MICHIGAN.
WE'RE BASED OUT OF LANSING, MICHIGAN.
WE'VE DEVELOPED IN EIGHT DIFFERENT STATES ACROSS INDUSTRY
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SECTORS OF MULTIFAMILY, UH, MIXED USE, COMMERCIAL, INDUSTRIAL, UH, BIG BOX RETAIL, UM, OFFICE ENTERTAINMENT, UH, HOSPITALITY.UH, AND ALL OF THESE PROJECTS HAVE ONE THING IN COMMON, AND THEY'VE ALL STARTED AS A PROBLEM, WHETHER THAT BE CONTAMINATION OR, OR, OR OTHER ISSUE.
AND THAT COULD BE ANYTHING, SOMETHING THAT A CITY, COUNTY, TOWN VILLAGE DOESN'T HAVE THAT WANTS TO HAVE.
BUT IT'S ALL FOCUSED ON OUR COMPANY BEING SOLUTION BASED, RIGHT? WE, WE TRY TO LISTEN AS MUCH AS WE CAN, AND WE TRY TO FOCUS IN ON HOW TO SOLVE THESE OBJECTIVES, UH, COLLABORATIVELY THROUGH PARTNERSHIP WITH CITIES.
SO A LITTLE BIT OF OUR EXPERIENCE, UH, IN TERMS OF OUR GLOBAL PARTNERSHIP IN THIS PROJECT, THERE'S PROBABLY 10 OR SO COMPANIES WORKING ON THIS PROJECT.
UH, THAT INCLUDES DESIGNERS, DEVELOPERS, PLACEMAKERS OPERATORS, AND OPERATORS CAN BE OF SPORTS TEAMS, THEY CAN BE OF, OF, UH, UM, ARENAS.
UM, WE HAVE A BUNCH OF, UH, UH, WE HAVE MANAGERS AS WELL.
AND SO THIS IS A STAGGERING NUMBER THAT I DIDN'T WANT TO JUMP INTO TOO MUCH, BUT I DID WANT TO SHOW THE DEPTH OF THE TEAM AND HOW SERIOUSLY WE'RE TAKING THIS.
UH, WE'VE PERSONALLY, RIVER CADIS HAS DEVELOPED IN, IN TEXAS.
WE HAVE, OUR GROUP HAS TEXAS MEMBERS.
UH, WE TAKE THAT, OBVIOUSLY BEING FROM MICHIGAN, IT'S HARD FOR ME TO TELL YOU WHAT YOU NEED.
UH, SO WE ALSO BRING IN A LOT OF FOLKS, LOCAL, REGIONAL, AND NATIONAL TO PROVIDE A BUNCH OF DIFFERENT PERSPECTIVES, UH, AND, AND, AND SOLVING FOR THE, THE, THE WIDEST ARRAY OF, OF ISSUES.
SO, AS I SAID, WE'VE WORKED ON A BUNCH OF DIFFERENT PROJECTS ACROSS THE NATION.
OUR TEAM HAS, WE ARE VERTICALLY INTEGRATED AS RIVER CADIS, BUT THE TEAM KINDA HITS EVERY ASPECT OF THE DEVELOPMENT PROCESS.
AND SO THE NEXT 10 OR SO SLIDES ARE SOME EXAMPLES OF PROJECTS OUR, OUR TEAM HAS WORKED ON.
AND AGAIN, THIS IS THE GLOBAL TEAM.
SO WHETHER IT'S PUBLIC-PRIVATE, MULTI-FAMILY, OR THE HOTEL THAT WE JUST SHOWED, OR THE, UH, ALLEN EVENT CENTER OR MIXED USE OFFICE, UH, ARENA WITH, UH, HOSPITALITY OFFICE, MEDICAL PLACEMAKING, UH, AMPHITHEATERS, UH, THIS IS ACTUALLY INTERESTING.
HERE'S A, THE ALLENTOWN, WHICH IS THIS ONE RIGHT HERE.
HERE'S ALLENTOWN INSIDE AS A BASKETBALL COURT.
FOUR HOURS LATER, IT'S A, UH, IT'S A HOCKEY RINK.
AND THAT SAME ARENA ALSO CAN TURN INTO FOUR HOURS LATER INTO A, UM, EVENT SPACE FOR CONCERTS, MUSIC VENUES, STANDUP COMEDIANS, SO ON AND SO FORTH.
AND THEN WE ALSO WORK WITH A VERY, UH, VERY LARGE, VERY PROMINENT PLACEMAKER.
UM, THE IDEA HERE IS TO CREATE A REGIONAL DESTINATION FROM WHAT WE'RE LOOKING AT.
AND THIS GROUP HAS ALSO WORKED ON DISCOVERY GREEN IN HOUSTON.
SO AGAIN, DIDN'T WANT TO TAKE TOO MUCH TIME.
I JUST WANTED TO INTRODUCE MYSELF, OUR COMPANY A LITTLE BIT.
I LOOK FORWARD TO HAVING MORE OF THESE CONVERSATIONS, THIS FEASIBILITY STUDY TONIGHT, UH, THAT, UH, HUN UH, ROB AND HIS TEAM ARE GOING TO EXPLAIN, UM, WHAT IT IS VERSUS WHAT IT IS NOT.
THIS, THIS STUDY IS THE ECONOMIC FEASIBILITY BASED UPON DIFFERENT TYPES OF USES, DIFFERENT TYPES OF ASSET CLASS THAT WE'VE PROGRAMMED ON THE CHESTER DAVIS SITE.
NOW, THAT'S GOING TO, UM, SHOW YOU GUYS, UH, WHAT LEVEL OF IMPACT THIS COULD HAVE.
WHAT THIS STUDY IS NOT IS A FINANCIAL FEASIBILITY STUDY.
WE WE'RE, WE HAVE NOT FULLY GOTTEN INTO, UM, NOT JUST ALL OF THE COSTS, BUT THE FULL PROGRAM, ALL OF THAT, UH, YOU KNOW, THIS IS NOT, UM, HOW WE'RE GOING TO FINANCE THIS TONIGHT.
TONIGHT IS JUST SAYING, HEY, WE HAVE THIS MANY USES.
THIS IS HOW WE PROGRAMMED IT FROM THE START.
THIS IS WHAT WE CAN FIT ON THE SITE,
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AND THESE ARE THE IMPACTS THAT IT GENERATES.NOW PHASE TWO OF THAT STUDY WILL GET INTO THE FINANCING.
SO THAT'S NOT A, NOT A DISCUSSION FOR TONIGHT.
UM, BUT HOPEFULLY THIS IS SOMETHING THAT GENERATES SOME EXCITEMENT THAT THIS SHOWS, THIS IS GOOD NEWS IF THIS IS WHAT YOU WANT TO SEE IN LEAGUE CITY.
UM, AND THEN OUR NEXT STEPS AFTER THIS WOULD BE TO FINALIZE A CONCEPTUAL PLAN, GIVE YOU GUYS SOMETHING TO LOOK AT, SOMETHING THAT'S A LOT MORE EXCITING, BRING IN A LOT MORE TEAM MEMBERS, GENERATE THAT EXCITEMENT, ENTHUSIASM, THAT PASSION OF WHAT THIS COULD BE.
UH, THEN WE GET INTO THE FINANCIAL MODELING.
UM, WE, WE HEAR WHAT PEOPLE WANT TO SEE, WHAT THEY WANNA FEEL WHEN THEY LOOK AT THIS SITE.
UH, AND THEN IF, IF WE'RE AT A POINT WHERE EVERYBODY'S IN AGREEMENT, UH, OR WE LIKE THE DIRECTION, THEN WE START DISCUSSING WHAT THAT LOOKS LIKE AND WHAT THE NEXT STEPS ARE AFTER THAT.
SO I'M GONNA PASS THIS OVER TO HUNTIN HIS GROUP, AND THEN WE WILL BE ALL AVAILABLE FOR QUESTIONS AFTERWARDS.
WELL, THANK YOU VERY MUCH, JOHN.
UM, AND THANK YOU EVERYONE HERE TODAY FOR, FOR HAVING US IN LEAGUE CITY.
UM, SO TO START THINGS OFF, I WOULD LOVE TO, UM, INTRODUCE ROB HUNTIN.
UNFORTUNATELY, HE COULD NOT BE JOINING US TODAY BECAUSE HE JUST HAD SHOULDER REPLACEMENT.
SO ROB, I'M GONNA HAVE YOU GIVE AN INTRODUCTION BEFORE WE DIVE INTO SOME OF THE SLIDES OF OUR SUMMARY OF OUR FEASIBILITY AND IMPACT STUDY FOR REALLY THIS GAME CHANGING PROJECT IN LEAGUE CITY.
UH, HOPEFULLY YOU ALL CAN HEAR ME.
I'M GIVING THE THUMBS UP WITH MY RIGHT HAND, WHICH IS THE GOOD ARM.
UH, REALLY APPRECIATE, UH, THE OPPORTUNITY TO, UM, REALLY ADVISE, UM, THE DEVELOPMENT TEAM AND THE CITY ON THIS PROJECT.
UM, WE HAVE A COUPLE OF SLIDES THAT JUST TALK ABOUT WHO H IS AND, UH, WHAT WE ARE AND, AND WHAT WE FOCUS ON.
AND IT IS THIS VERY TYPE OF A PROJECT LARGE, UM, GAME CHANGING, TRANSFORMATIVE MIXED USE PROJECT.
SO, UM, I'M GONNA, I CANNOT SEE THE SLIDES, BUT I KNOW WHAT SLIDE NUMBER TWO IS.
AND IT'S A MAP THE UNITED STATES THAT SHOWS ALL THE PLACES THAT WE'VE WORKED ON COMPELLING GAME CHANGING PROJECTS.
AND I WOULD SAY IN ANY GIVEN YEAR, ABOUT A QUARTER TO A THIRD OF OUR WORK IS IN THE STATE OF TEXAS.
UM, I'VE BEEN, UH, DOING THIS FOR, UH, NEARLY 30 YEARS AND THE FIRM IS 18 YEARS OLD.
SO WE FOCUS ON ENTERTAINMENT VENUES AND DISTRICTS, STADIUMS, ARENAS, AND OTHER EVENT CENTERS, CONVENTION AND CONFERENCE CENTERS, ALL KINDS OF HOTELS, HEADQUARTER HOTELS, CONFERENCE HOTELS, BOUTIQUE HOTELS, UM, YOUTH SPORTS COMPLEXES, INDOOR AND OUTDOOR.
UM, OF COURSE RETAIL, RESTAURANT, RESIDENTIAL AND OFFICE.
UH, MIXED USE DISTRICTS, UM, UNIVERSITIES, UM, AND THEIR DEVELOPMENTS, FAIRGROUNDS AND EXPOS AS WELL AS ENTERTAINMENT, FINE ARTS, VENUES, ATTRACTIONS, DISTILLERIES, BREWERIES AND WINERIES.
SO ALL THE FUN STUFF I LIKE TO SAY.
WE DO NERDY WORK FOR COOL PLACES.
UM, ALSO, UH, JUST A LITTLE BIT OF BACKGROUND.
I STARTED OFF ON YOUR ALL'S SIDE OF THE, I GUESS THE AISLE, IF YOU WILL, IN TERMS OF, I WORKED FOR THE CITY OF INDIANAPOLIS, UM, AND, UH, FOR THE MAYOR'S OFFICE AND THE LOCAL PUBLIC IMPROVEMENT BOND BANK WORKING, UH, FOR SEVERAL YEARS ON THESE TYPES OF PROJECTS TO TRY TO REALLY UNDERSTAND HOW CAN WE BRING THE PUBLIC SECTOR, THE PRIVATE SECTOR, OFTENTIMES OTHER SECTORS, WHETHER IT'S UNIVERSITY, NONPROFIT, ET CETERA, UM, INTO A COMMON VISION FOR, UH, TRANSFORMATIONAL DEVELOPMENT.
AND SO THAT REALLY GOT ME EXCITED ABOUT WHAT YOU CAN DO WHEN YOU'RE REALLY THINKING STRATEGICALLY, PLANNING FOR TRANSFORMATIVE DEVELOPMENT, GETTING AHEAD OF THE DEVELOPMENT SO YOU'RE NOT JUST LETTING THE SORT OF THE RANDOMNESS OF, UM, THE LOWEST COMMON DENOMINATOR OF WHAT THE MARKET WILL BEAR AND HAVE THE SAME OLD TENANT MIX AND, UH, BRANDS AND MCDONALD'S AND WHATNOT THAT UM, EVERYBODY ELSE HAS IN EVERY CORNER.
YOU WANNA DO SOMETHING SPECIAL, SO YOU HAVE TO GET A LITTLE BIT AHEAD OF IT.
AND SO THAT'S, UM, WHAT'S SO EXCITING ABOUT WHAT WE DO AND WHY WE'RE EXCITED TO BE HELPING JOHN AND HIS TEAM AS WELL AS THE CITY.
UM, SO ANYWAY, SO THAT'S MY BACKGROUND.
I'VE, UH, MOVED TO CHICAGO ABOUT, UM, I GUESS IN 1998, WHICH HAS BEEN 26 YEARS NOW, AND HAVE BEEN DOING THIS FOR A LONG TIME.
I WOULD LIKE TO, UM, ALSO INTRODUCE, UM, STEVE AND MATT.
OF COURSE MATT IS STANDING THERE IN FRONT OF YOU AND I CANNOT SEE ANYONE, UH, OTHER THAN MYSELF.
SO, UM, I'LL HAVE STEVE AND MATT INTRODUCE THEMSELVES AND I APPRECIATE THEM BEING THERE, UH, ON OUR BEHALF.
SO I'M STEVE HAMMERLY, EXECUTIVE VICE PRESIDENT WITH HYUNDAI PARTNERS, AND CERTAINLY
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APPRECIATIVE TO BE HERE WITH ALL OF YOU THIS EVENING.SO I'M FORTUNATE OVER THE COURSE OF MY CAREER TO HAVE, UH, BEEN INVOLVED IN DEVELOPING AND LEADING THE DEVELOPMENT OF SOME VERY IMPORTANT PROJECTS FROM THE PUBLIC SECTOR, UH, THE PRIVATE SECTOR, AND NOT THE, NOT-FOR-PROFIT SECTOR.
SO I, YOU KNOW, LIKE ROB, I'VE ACTUALLY SPENT A BIG PART OF MY CAREER WORKING IN THE PUBLIC SECTOR, SO I'M VERY FAMILIAR WITH SORT OF THE, THE CHALLENGES THAT ALL OF YOU ARE FACED WITH.
UM, THE, THE INTERESTING PART IS, PRIOR TO COMING TO WORK FOR HYUNDAI, I WAS RESPONSIBLE FOR THE REDEVELOPMENT OF NAVY PEER IN CHICAGO.
I ACTUALLY HIRED HYUNDAI PARTNERS AND HIRED ROB TO HELP, UH, HELP ME FIND A DEVELOPMENT PARTNER THERE TO DEVELOP A HOTEL AT THE PIER.
UH, I BRING OVER 30 YEARS OF REAL ESTATE EXPERIENCE IN MIXED USE DEVELOPMENT, UH, PROJECT MANAGEMENT, STRATEGIC PLANNING, ARCHITECTURE, AND REAL ESTATE OPERATIONS.
I WILL NOW TURN THINGS OVER TO MATTHEW, WHO WILL INTRODUCE HIMSELF AND WALK THROUGH THE, UH, BULK OF THE PRESENTATION.
YEAH, WE SHOULD PROBABLY JUMP INTO THE PRESENTATION 'CAUSE I THINK THERE'S GONNA BE A LOT OF QUESTIONS.
SO IF WE CAN, UH, KINDA MOVE INTO THE MEAT OF THIS.
'CAUSE WE ARE UP AGAINST THE SIX O'CLOCK MEETING, SO, OKAY.
I WANNA MAKE SURE WE HAVE TIME FOR DEFINITELY, YEP.
SO, UM, JOHN GAVE A A BRIEF BACKGROUND ON WHY WE WERE HIRED AND, AND WHAT OUR SCOPE OF WORK WAS.
BUT REALLY OUR COMPREHENSIVE ANALYSIS WAS TO REVIEW EXISTING RESEARCH DESTINATION PLANS AND OTHER PLANNING DOCUMENTS THAT HAVE OCCURRED PREVIOUSLY.
UM, ANALYZE DESTINATION REAL ESTATE METRICS, INCLUDING MARKET AND VISITOR METRICS ACROSS NOT ONLY LEAGUE CITY BUT THE REGION.
UM, FOCUSING ALL ACROSS THE HOUSTON METROPOLITAN AREA ON GAPS AND OPPORTUNITIES, BUT ALSO PERFORMANCE POST COVI, ANALYZING HOW THINGS HAVE CHANGED AND WHERE THAT VISITOR AND REAL ESTATE ECONOMY CURRENTLY IS.
FROM THOSE ANALYSES AND, UM, STRONG STAKEHOLDER INTERVIEWS AND FEEDBACK, WE THEN CRAFTED, UM, OUR MARKET BASE RECOMMENDATIONS FOR THE OVERALL DEVELOPMENT.
AND THEN FINALLY, UM, THOSE LED TO OUR DETAILED FINANCIAL AND IMPACT PROJECTIONS, WHICH WE'LL GO THROUGH TODAY, WHICH ARE QUITE EXCITING IN TERMS OF THE GENERATIONAL PROJECT THAT THIS COULD BE FOR THE CITY OF LEAGUE CITY.
SO IN TERMS OF OUR MARKET HEADLINES, UM, FOR THE PROJECT, UM, WE THOROUGHLY BELIEVE THAT THIS IS A STRONG OPPORTUNITY FOR A DESTINATION PLACEMAKING EFFORT.
I KNOW THAT TERM GETS THROWN AROUND IN TERMS OF CREATING A PLACE OR A DESTINATION, BUT REALLY THIS SITE THAT WE'RE TALKING ABOUT WITH CHESTER L DAVIS, UM, THE STRONG TRAFFIC COUNTS THAT ARE, UM, SEEN WITHIN THAT MAJOR THOROUGHFARE AND THE OVERALL MARKET POSITION, THIS AS A STRONG OPPORTUNITY FOR THE CITY TO, TO REALLY GO AFTER AND CAPTURE.
UM, IN TERMS OF THE USE TYPES, I'LL GO THROUGH THOSE RECOMMENDATIONS HERE IN A SECOND.
BUT WE BELIEVE STRONGLY IN A MIXED USE DISTRICT ANCHORED BY A STRONG EVENT COMPLEX, INCLUDING AN ICE ARENA WITH AN ANCILLARY COMMUNITY ICE SHEET, AS WELL AS, UM, A CONVENTION EVENT CENTER THAT WOULD INCLUDE A HOTEL.
WE TOOK A THOROUGH LOOK AT THE COMPETITIVE ARENA SUPPLY, UM, WITHIN THE HOUSTON METROPOLITAN AREA AND REALLY FOUND THERE TO BE A SIZABLE GAP WITHIN THE SMALL TO MID-SIZE RANGE, SPECIFICALLY AROUND ICE.
UM, ALTHOUGH THE NRG ARENA IN FORT BEND EPICENTER, UM, ARE TWO NOTABLE FACILITIES, THERE IS A GAP IN THE MARKET WITHIN THAT SIZE THRESHOLD, UM, FOR A, UM, ARENA TO BE LOCATED HERE IN LEAGUE CITY.
UM, WE HAD GREAT CONVERSATIONS WITH OPERATORS OF BOTH OF THOSE VENUES AS WELL AS OTHERS WITHIN THE REGION.
UM, AND THEY, UM, FOUND THAT TO BE TRUE AS WELL, UM, AND BELIEVED THAT AN ARENA IN LEAGUE CITY WOULD ACTUALLY BE COMPLIMENTARY TO SOME OF THOSE OTHER FACILITIES ACROSS THE HOUSTON MARKET.
WE ALSO, THROUGHOUT OUR STUDY PROCESS, UM, INTERVIEWED A NUMBER OF, UM, ORGANIZATIONS, LEAGUES, UM, THAT OPERATE ON A NATIONAL SCALE.
UM, AND REALLY WE HEARD GREAT FEEDBACK FROM ALL OF THEM IN TERMS OF THEIR, UM, OPTIMISM ON THE MARKET SITUATION HERE IN LEAGUE CITY, UM, AS WELL AS HOUSTON AS A WHOLE.
UM, SO EVERYTHING FROM MINOR LEAGUE HOCKEY, UM, WHICH THE LEAGUE IS TO BE DETERMINED, UM, FROM YOUTH SPORTS INCLUDING BASKETBALL, VOLLEYBALL, CHEER AND DANCE, UM, AND OTHERS THAT YOU CAN SEE THERE THAT CAN BE HOUSED WITHIN A FLEXIBLE FACILITY THAT WE'RE TALKING ABOUT.
AND THEN TALKING ABOUT CONVENTION, CONSUMER TRADE AG SHOWS AND EQUESTRIAN SHOWS BEING ALSO AN OPPORTUNITY TO BE HOUSED WITHIN THIS COMPLEX.
UM, IN TERMS OF TICKETED ENTERTAINMENT
[00:30:01]
AND LIVE SHOWS, UM, WE TALKED WITH MANY LIVE, UM, EVENT PROMOTERS WITHIN THE MARKET, UM, AND FOUND THERE TO BE A STRONG OPPORTUNITY WITHIN THE THREE TO 6,000 CAPACITY RANGE FOR EVENTS.UM, AND THAT WOULD MEAN TICKETED EVENTS, INCLUDING CONCERTS, BUT ALSO WITH ICE CAPABILITIES.
MANY FAMILY ENTERTAINMENT SHOWS SUCH AS DISNEY ON ICE AND OTHERS THAT CAN BE PROGRAMMED FROM THOSE, UM, PROMOTERS, UM, THAT FOUND THERE TO BE A STRONG OPPORTUNITY AND WOULD LOVE TO BE LOCATED IN LEAGUE CITY TO HOST EVENTS HERE.
AND THEN FINALLY, I'LL TOUCH ON IT IN THE RECOMMENDATIONS.
UM, THE MIXED USE NEED HERE IN LEAGUE CITY BASED ON THE COMMERCIAL REAL ESTATE PERFORMANCE OF THOSE ASSETS IS QUITE STRONG AND REALLY IS THE FINANCING MODEL, UM, AROUND THE COUNTRY FOR A NUMBER OF THESE DISTRICTS, INCLUDING THOSE STRONG COMMERCIAL REAL ESTATE USES NEXT TO THE EVENT, UM, CENTER COMPONENT TO REALLY CREATE A STRONG ECOSYSTEM.
UM, I WON'T USE THE LIVE WORK PLAY TERM, BUT REALLY CREATING THAT ENVIRONMENT THAT PEOPLE WANT TO BE IN.
SO TO GET TO OUR HEADLINES FROM THE MARKET SUPPLY AND DEMAND PERSPECTIVE, BEGINNING WITH THE ARENA AND ICE COMPLEX AND THE CONVENTION AND EVENT SPACE, UM, I MENTIONED A LITTLE BIT ON THE LAST SLIDE, UM, BUT REALLY THE SUPPLY IS LIMITED TO MODERATE FOR BOTH OF THOSE IN TERMS OF, UM, THE MARKET ASSESSMENT AND DEMAND IS QUITE STRONG, LEADING TO A STRONG OPPORTUNITY.
UM, WE PROGRAMMED, UM, AND BASED ON OUR ASSESSMENT, UM, THAT COMPLEX IN TERMS OF THE ARENA AS WELL AS THE CONVENTION AND EVENT SPACE WOULD HOST APPROXIMATELY 170 EVENTS PER YEAR UPON STABILIZATION, EVERYTHING FROM SPORTS TO GRADUATIONS, CONCERTS, AND ALL OF THE OTHERS THAT I MENTIONED.
IN TERMS OF, UM, THE COMMERCIAL USES WITHIN THE DISTRICT, BEGINNING WITH HOTEL, THE SUPPLY WAS MODERATE.
UM, WE TOOK A THOROUGH ASSESSMENT OF THE MARKET, UNDERSTANDING A NUMBER OF THE PROPERTIES AND LEAGUE CITY AND THE CHANGES THAT YOU ALL WILL BE SEEING, ESPECIALLY WITH THE GREAT WOLF LODGE COMING IN, UM, WHO WE'VE WORKED WITH IN THE PAST AND ACTUALLY TALKED WITH AS IT RELATES TO THIS STUDY IN TERMS OF MARKET CHANGES.
UM, BUT REALLY WE FOUND A STRONG, UM, DEMAND FOR CONVENTION AND EVENT SPACE RELATED TO A HOTEL PROPERTY RESULTING IN THAT STRONG FUTURE OPPORTUNITY.
IN TERMS OF TRADITIONAL RETAIL AND RESTAURANT CURRENT SUPPLY IS MODERATE TO GOOD.
OBVIOUSLY THERE ARE, UM, A NUMBER OF LARGE, BIG, BIG BOX CENTERS IN TRADITIONAL, UM, RETAIL ALONG THE I 45 CORRIDOR.
UM, HOWEVER, WE REALLY FEEL THERE'S AN OPPORTUNITY TO CREATE SOMETHING MORE UNIQUE AND WALKABLE, UM, THAT'S AUTHENTIC TO THE LOCAL, UM, COMMUNITY IN TERMS OF UNIQUE RETAIL AND RESTAURANT SPACE AND ENTERTAINMENT.
SIMILARLY, ALONG THAT THREAD, THAT OPPORTUNITY IS STRONG FROM A MULTIFAMILY PERSPECTIVE.
OUR STUDY CONCLUDED THAT THE SUPPLY IS CURRENTLY GOOD, BUT THERE'S, UM, STRONG OPPORTUNITY FOR, FOR MORE COMING IN THE FUTURE THAT WE BELIEVE WILL REALLY CREATE, UM, MORE ACTIVITY DURING THOSE SLOW HOURS WITHIN THE DISTRICT AND REALLY CAN FILL THOSE MIDDAY WEEK HOURS WITH RESIDENTS LIVING ON SITE.
AND THEN FINALLY, AS MANY KNOW, THE OFFICE MARKET IS QUITE CHALLENGED COMING OFF OF COVID WITH MANY PEOPLE WORKING FROM HOME STILL.
UM, SO THE SUPPLY, ALTHOUGH IS, IS MINIMAL.
UM, THE DEMAND IS MODERATE TO GOOD.
WE'VE PROGRAMMED, UM, A SMALL PERCENTAGE OF OFFICE WITHIN THE, WITHIN THE TOTAL PROJECT, UM, HOWEVER POTENTIAL FUTURE OPPORTUNITIES DOWN THE LINE AS THAT DEVELOPMENT PROGRAM COMES TO FRUITION, POTENTIALLY TWEAKING IT BASED ON MARKET NEEDS AND CONDITIONS.
SO TO GET INTO OUR RECOMMENDED, UM, DEVELOPMENT PROGRAM FROM OUR FEASIBILITY STUDY, UM, BEGINNING AT THE TOP, UM, WHICH I'VE ALREADY TALKED ON, UM, A LITTLE BIT, UM, BUT BEGINNING WITH THE ARENA APPROXIMATELY 6,000 SEATS, UM, IS WHAT WE'VE PROGRAMMED, UM, FOR THE FIXED SEATED CAPACITY OF THE ARENA, THIS WOULD BE ABLE TO SCALE UP TO ABOUT 7,000 OR 8,000 TOTAL CAPACITY FOR CONCERTS AND THEN HAVE SOME SUITES IN THERE, UM, FOR SOME OF THE LOCAL CORPORATIONS AND, AND VIP GUESTS TO, TO HAVE SUITES WITHIN THAT VENUE.
ADDITIONALLY, CONNECTED TO THAT MAIN ARENA WOULD BE A COMMUNITY ICE SHEET OF APPROXIMATELY 40,000 SQUARE FEET.
UM, THAT WOULD GIVE THE CITY OF LEAGUE CITY A STRONG, UM, POSITION IN THE MARKET FOR HOCKEY TOURISM.
UM, WE SPOKE WITH MANY HOCKEY OPERATORS ACROSS, UM, NOT ONLY THE METROPOLITAN AREA, BUT ACROSS THE COUNTRY.
[00:35:01]
SHEETS LOCATE CO-LOCATED TOGETHER ON THE SITE, ONE IN THE MAIN ARENA.AND THEN ONE IS A COMMUNITY ICE SHEET REALLY POSITIONS WELL FOR, UM, HOCKEY TOURNAMENTS, BUT THEN DURING THOSE NON TOURNAMENT DAYS YOU HAVE OPEN SKATE OR OTHER COMMUNITY EVENTS, LEARN TO SKATE PROGRAMS TO REALLY GROW THAT BASE WITHIN THE COMMUNITY FOR HOCKEY.
IN TERMS OF THE CONVENTION AND EVENT SPACE, UM, CONNECTED TO THAT COMPLEX, WE'RE PROJECTING, UM, APPROXIMATELY 20,000 SQUARE FEET OF FLEXIBLE EVENT SPACE AND 12,000 SQUARE FEET OF MEETING ROOM SPACE, UM, BASED ON CURRENT MARKET CONDITIONS.
AND THAT WOULD REALLY GIVE A GREAT, UM, DUALITY OF THE COMPLEX, HAVING THAT MAIN EVENTS EVENT FLOOR SPACE, AND THEN ALSO FLEXIBLE EVENT CENTER SPACE AS WELL.
IN TERMS OF THE CONFERENCE HOTEL, WE'RE, UM, PLANNING FOR 300, UM, ROOMS WITHIN THE, WITHIN THE HOTEL THERE WITH A STRONG MEETING PACKAGE AS WELL.
AND THEN AN ADDITIONAL SELECT SERVICE PROPERTY OF 125 KEYS.
IN TERMS OF RETAIL AND RESTAURANT SPACE IN PHASE ONE, UM, WE'RE PLANNING FOR 150,000 SQUARE FEET OF TRADITIONAL RETAIL AND RESTAURANT SPACE, AND THEN A LARGE ENTERTAINMENT ACRE, UM, THAT WOULD, THAT'S REALLY TO BE DETERMINED.
UM, BUT SIMILAR TO TOPGOLF AND CHICKEN AND PICKLE AND OTHER TRENDS THAT WE'RE SEEING ACROSS THE INDUSTRY FOR THOSE OFFERINGS THAT CAN REALLY DRIVE SOME MORE FAMILY ENTERTAINMENT OPTIONS FOR THE LOCAL COMMUNITY, BUT THEN ALSO DRIVE PEOPLE, UM, FROM THE SURROUNDING AREA INTO LEAGUE CITY.
AND THEN FINALLY TO WRAP UP PHASE ONE, UM, AND THE REMAINING USES THERE, 300 MULTI-FAMILY RESIDENTIAL UNITS, 75,000 SQUARE FEET OF OFFICE SPACE, AND THEN AN OUTDOOR CENTRAL COMMUNITY PLAZA OF ABOUT 30,000 SQUARE FEET OF SPACE.
UM, JOHN SHOWED SOME GREAT IMAGERY OF, UM, SOME TEAM MEMBERS AND SOME PROJECTS THEY'VE WORKED ON REALLY THAT CORE CENTRAL SPACE CAN HOST A NUMBER OF OUTDOOR EVENTS AND BE A PLACE FOR THE COMMUNITY TO GATHER, UM, AND HOLD ANNUAL FESTIVALS AND EVENTS.
UM, BEFORE I GET TO THE IMPACTS, I'VE PROVIDED SOME OF THE CASE STUDIES THAT WE LOOKED AT ACROSS THE COUNTRY.
UM, AND THEN TO CONCLUDE HERE, BEFORE I TURN IT OVER TO STEVE FOR NEXT STEPS AND CONCLUSIONS, UM, I WANTED TO GO THROUGH THOSE ECONOMIC IMPACT PROJECTIONS, UM, WHICH ARE QUITE SIZABLE AND, UM, WE'RE VERY EXCITED ABOUT BASED ON OUR ASSESSMENT.
UM, AND THE OVER PLAN, OVERALL PLAN FOR THE DISTRICT.
UM, SO TO GO THROUGH THESE, UM, OVER A 30 YEAR TIMEFRAME, UM, THIS DEVELOPMENT PROGRAM, UM, THAT I JUST WALKED THROUGH WOULD CONTRIBUTE TO 9.2 BILLION IN NET NEW SPENDING FOR THE CITY OF LEAGUE CITY, OVER 1700 NET NEW PERMANENT JOBS, 4.6 BILLION IN NET NEW EARNINGS, UM, 542 MILLION IN STATE TAXES GENERATED, AND THEN 223 MILLION IN LOCAL TAX GENERATION.
THERE WOULD ALSO BE THOSE ONE-TIME CONSTRUCTION IMPACTS, UM, THAT WOULD BE EXPERIENCED DURING THAT, UM, INITIAL CONSTRUCTION PHASE, LIKELY OVER, UM, MULTIPLE YEARS.
SO THEN TO GET TO OUR CONCLUSIONS, I WANTED TO TURN IT OVER TO STEVE AND THEN WE CAN GET TO QUESTIONS.
SO JUST THE CONCLUSIONS ARE FAIRLY STRAIGHTFORWARD.
WE, WE BELIEVE THIS IS AN ACHIEVABLE VISION.
WE THINK IT'S A VERY ROBUST ECONOMIC DRIVER FOR THE COMMUNITY.
IT'S A GENUINE OPPORTUNITY TO KEEP LOCAL SPENDING IN LEAGUE CITY.
UH, THIS IS AN INCREDIBLE OPPORTUNITY TO CREATE A CENTER FOR LEAGUE CITY, A COMMUNITY GATHERING PLACE, AND TO REALLY CREATE AN ASSET THAT EVERYONE HERE CAN BE PROUD OF.
UH, JUST TO TALK A LITTLE BIT ABOUT NEXT STEPS.
THE, THE FIRST IS REALLY ABOUT ALIGNMENT AND, AND THIS IS ALIGNMENT WITH THE CITY LEADERSHIP THAT'S ELECTED OFFICIALS, CITY STAFF, AND THE DEVELOPMENT TEAM.
AND THE NEXT STEP REALLY FOCUSES ON FINANCING AND FINANCING STRATEGIES.
AND SO THERE WILL LIKELY BE SOME SIGNIFICANT FEASIBILITY GAPS IN THE DEVELOPMENT THAT'S TYPICAL FOR PROJECTS THAT ARE AS IMPACTFUL AS THIS.
AND, AND SO REALLY WHAT WE WILL LOOK AT IS WE'LL LOOK AT THE DIFFERENT, UH, TOOLS THAT ARE AVAILABLE WITHIN THE STATE OF TEXAS AND HOW THOSE CAN BE UTILIZED TO HELP CLOSE ANY FUNDING GAPS THAT EXIST.
AND THEN AFTER THAT, IT'S REALLY ABOUT THE DETAILS OF PLANNING AND DESIGN.
IT'S, IT'S TAKING ADVANTAGE OF THE INCREDIBLE DESIGN TALENT THAT JOHN HAS ASSEMBLED ON HIS TEAM, ALLOWING THEM TO GET ABOUT THE BUSINESS OF DESIGNING AND CREATING GREAT PUBLIC SPACES, CREATING GREAT BUILDINGS, A GREAT ASSET FOR THE COMMUNITY.
AND, AND THEN REALLY IT'S ABOUT IMPLEMENTATION,
[00:40:01]
WHICH IS, IS DELIVERING ON THE STRATEGY AND PLAN FOR THE DEVELOPMENT.UH, AND SO THAT CONCLUDES THE PRESENTATION.
AND IF YOU ALL HAVE QUESTIONS, I THINK ALL ALL OF US ARE HERE TO, TO TRY AND ANSWER THEM.
YOU GUYS JUST JUMP ON THE QUEUE IF YOU WANNA GO, TOM.
SO IN THE PACKET, THERE WAS A GOOD BIT, UH, THE HOCKEY SEEMS TO BE A PRETTY BIG DRIVER IF IT'S BEEN ON THE NEWS LATELY THAT TILLMAN FERTITA IS LOOKING TO BRING A PROFESSIONAL HOCKEY TEAM TO DOWNTOWN HOUSTON.
IS, IF THAT HAPPENS, HOW MUCH DO YOU THINK THIS WOULD PLAY ON THE NUMBERS THAT YOU'VE GOT? SO WITH NHL POTENTIALLY COMING TO THE MARKET, UM, WE SEE THAT AS ONLY MAKING THIS PROJECT BETTER, UM, THAT WILL GROW THE SPORT OF HOCKEY IN THE MARKET.
AND ALSO WHAT WE'VE FOUND TO BE TRUE IS, UM, THIS WOULDN'T BE COMPETITIVE WITH NHL, UM, IT WOULD REALLY BE, UM, IT WOULD REALLY COEXIST.
SO THERE'S MANY MARKETS WHERE, UM, THERE'S ACTUALLY, UM, THE MINOR LEAGUE TEAMS WITHIN THE MARKET AS WELL AS THAT NHL FRANCHISE AS WELL.
UM, SO REALLY IT WOULD CREATE MORE OPPORTUNITIES.
UM, ONE OF THE CASE STUDIES WE ACTUALLY SHOWED IN, IN THE LARGER FEASIBILITY STUDY IS IN ST.
LOUIS WITH THE CENTENE ICE COMPLEX, UM, WHICH IS ACTUALLY THE BLUES TRAINING FACILITY.
UM, SO THEY ACTUALLY HAVE THE DUAL COMMUNITY SHEET AS WELL AS THE MAIN ARENA, UM, FOR THE BLUES.
UM, SO THERE COULD ACTUALLY BE A STRONG OPPORTUNITY THERE IF THIS IS TO OCCUR.
MATT OR ROB COULD PROBABLY ANSWER THE QUESTIONS.
IF I TOLD YOU I HAD A, A BUSINESS HERE THAT WAS GONNA PRODUCE 225,000 OVERNIGHT VISITORS, WOULD THAT BE IMPORTANT TO YOUR ORGANIZATION? YES, WE WOULD.
IF I HAD A BUSINESS THAT HAD OVER 60,000 ROOM NIGHTS, WOULD THAT BE IMPORTANT? YES, THAT WOULD BE VERY IMPORTANT.
I THINK IT WOULD BE, IF I HAD A BUSINESS THEY HAD OVER 220 MAJOR EVENTS IN THE NEXT FIVE YEARS, WOULD THAT BE IMPORTANT? YES, IT WOULD BE.
WE, WE CONCLUDED THAT THAT BUSINESS WOULD BE PART OF THE, PROBABLY PART OF YOUR, UM, CENTER HERE OR YOUR, YOUR THOUGHT PROCESS.
CAN YOU TELL ME IF YOU'VE EVER SPOKEN TO THE SULLIVAN FOUNDATION, YOU OR ANYBODY IN REFERENCE TO THIS FEASIBILITY STUDY THAT YOU GAVE US TONIGHT, ROB? YEAH.
SO WE'VE, WE, UH, HAVE SOME INFORMATION ABOUT WHAT'S BEING PROPOSED.
NO, WE ONLY GOT A FEW MINUTES, SO I'M SORRY ROB, FOR EVERYBODY TO SPEAK.
HAVE YOU EVER SPOKE TO THE SULLIVANS ABOUT THEIR FEASIBILITY OR THEIR OPERATING FORECAST UP HERE, IF YOU CAN SEE THIS? NO.
TONIGHT WE RECEIVED A DOCUMENT.
CAN YOU TELL ME WHEN THAT WAS GIVEN TO THE CITY? IT'S CHAPTER ONE, PAGE FIVE, A DRAFT COPY ABOUT THE SULLIVAN FOUNDATION.
WHEN WAS THAT GIVEN TO THE CITY? I'M NOT SURE THE EXACT DATE.
WAS IT THIS WEEK? TODAY, LAST WEEK.
CAN YOU GIMME AN APPROXIMATION? 'CAUSE THAT'S THE FIRST TIME WE'VE SEEN THE DOCUMENT, THAT'S WHY I'M ASKING YOU.
YEAH, I'D HAVE TO, UH, DEFER TO THE, THE STAFF ABOUT THE TIMING.
'CAUSE ON, ON THE DRAFT BOOK THAT I'M HOLDING UP HERE, CHAPTER ONE, PAGE FIVE IS COMPLETELY DIFFERENT THAN WHAT'S ON HERE.
SO I'M JUST TRYING TO FIGURE OUT WHEN WE WERE GIVEN THE INFORMATION.
YEAH, MAYBE, MAYBE STAFF CAN ANSWER THAT QUESTION.
I, WE'LL, WE'LL GO ON FROM THERE.
SINCE WE WE'RE LIMITED ON TIME, YOU KNOW, AFTER SPEAKING TO MATT AND TO YOU ABOUT THE FEASIBILITY FROM THE SOUTHERN FOUNDATION, THAT WAS THEIR ORGANIZATION IN THIS OPERATING PACKAGE THAT THEY GAVE US TODAY.
AND, UM, I, I'M JUST TRYING TO, I HAVE THE FLOOR.
UM, YOU KNOW, I, I THINK IT'S DURING THE FEASIBILITY STUDY, THEY SHOULD HAVE AT LEAST BEEN LOOKED AT AND TALKED TO.
'CAUSE I THINK THEY, THEY PROVIDE A SERVICE AND ALL WE'RE GONNA BE GIVING THEM IS FOUR ACRES.
THEY'RE NOT ASKING FOR ANY MONEY FROM THE CITY OR ANYBODY ELSE TO BUILD A PROJECT.
SO I FIND IT, UM, UM, I FIND THAT YOUR ORGANIZATION DIDN'T REALLY DO THE JOB THAT THEY SHOULD HAVE BY NOT EVEN ATTEMPTING TO, TO CONTACT THE SULLIVANS AND GET SOME INFORMATION FROM THEM TO SEE IF IT'S FEASIBLE FOR THEM TO COME INTO OUR CITY.
[00:45:01]
A LITTLE PREMATURE AS FAR AS WHERE Y'ALL ARE ON IT, BUT THE, THE PHASE ONE THAT Y'ALL TALKED ABOUT, BALLPARK, HOW LONG IS THAT WINDOW IN, IN TERMS OF DEVELOPMENT TIME? CORRECT.YEAH, SO, UM, CERTAINLY IT ALL COMES DOWN TO, UH, FIRST OF ALL, YOU HAVE TO COME UP WITH A FINANCING PLAN FOR ALL THE DIFFERENT ELEMENTS OF IT.
UM, THAT COULD TAKE SOME TIME THEN, UH, AND TYPICALLY THAT, THAT COULD BE A, YOU KNOW, IF YOU SAID GO NOW, GO FIGURE OUT A FINANCING PLAN.
I MEAN, THAT COULD BE SIX TO 18 MONTHS BEFORE YOU GET ALL YOUR DUCKS IN A ROW THERE.
THEN THERE'S DESIGN TIME, WHICH COULD BE ANOTHER 12 TO 18 MONTHS.
AND THEN YOU HAVE DEVELOPMENT TIME, WHICH COULD BE IN ANOTHER COUPLE YEARS.
SO, UM, THERE'S DIFFERENT, OBVIOUSLY THINGS THAT COULD COME OUT OF THE GROUND FIRST, BUT WE'RE LOOKING PROBABLY AT, YOU KNOW, FIVE TO SEVEN YEARS BEFORE, YOU KNOW, UH, ALL OF PHASE ONE WOULD GET DEVELOPED JUST IN SORT OF A, IF YOU, IF YOU REALLY MOVED THINGS QUICKLY JUST TO, AS A GENERAL, I GUESS, RANGE.
AND SO I WANTED TO, UM, MR. FEL, UH, DECO BROUGHT SOMETHING UP EARLIER AND I, I THINK IT'S KIND OF IMPORTANT TO TALK ABOUT.
SO WHEN WE'RE TALKING ABOUT ECONOMIC INCENTIVES, AND I THINK THE COUNCIL'S BEEN PRETTY CLEAR ON IT, BUT I THINK WE'RE GONNA EXPLORE, I GUESS ALL OF THOSE INCENTIVES.
BUT I THINK THE COUNCIL'S BEEN REAL, UH, CLEAR FROM THE BEGINNING, OR AT LEAST I'LL, I'LL SPEAK FOR MYSELF.
I GUESS I, I DON'T THINK WE'RE LOOKING FOR ANYTHING IN TERMS OF PROPERTY TAX ABATEMENTS.
I'M NOT LOOKING FOR ANYTHING LIKE, UH, SALES TAX ABATEMENTS.
I THINK WHAT WE'RE TALKING ABOUT FROM THE ECONOMIC DEVELOPMENT SIDE, UH, IS TAKING ADVANTAGE OF SOME OF THE LAWS THAT WE HELPED GET PASSED THROUGH THE STATE IN THE LAST COUPLE SESSIONS TO TAKE ADVANTAGE OF STATE FUNDING, WHICH WOULD BE GATHERED THROUGH, UH, THE MIXED BEVERAGE TAX.
AND SO THAT MONEY WOULD COME FROM THE STATE TO HELP DEVELOP OUT THAT, UH, THAT CONVENTION CENTER.
SO THAT'S THE PRIMARY, SAY, GOVERNMENT FUNDING FROM THIS.
AND, YOU KNOW, THE, THE OTHER THINGS I THINK THAT WE COULD PROBABLY TALK ABOUT IS SOME OF THE HOT TAX, UH, THINGS OF THAT NATURE, BUT WANNA BE CLEAR, I DON'T THINK, UH, I'M LOOKING FOR, AND I DON'T THINK MOST OF THESE OTHER GUYS ARE EITHER LOOKING FOR THE BIG PROPERTY TAX THREE 80 AGREEMENTS AND THE SALES TAX THREE 80 AGREEMENTS.
AND THEN THE OTHER PART, TO BE CLEAR, AND WE KIND OF TALKED ABOUT THE TIMELINE THERE A SECOND AGO, IS, YOU KNOW, NONE OF THIS HAPPENS OR MOVES FORWARD UNTIL THE SPORTS PLEX IS, IS REPLACED, UH, BECAUSE WE'RE ALREADY IN A, IN A, A FIELD DEFICIT AND THIS, YOU KNOW, WE CAN'T LOSE THOSE, UH, THOSE FIELDS THERE.
AND THEN, YOU KNOW, THE OTHER PART, JUST TALKING ABOUT KIND OF, IF YOU GUYS COULD ADDRESS, UH, YOU KNOW, SOME OPPORTUNITIES THAT WE WOULD LOOK FOR FOR PARTNERING WITH, UH, UTMB OR THE OTHER BUSINESSES THAT ARE AROUND AND HOW THAT KIND OF PLAYS INTO THIS AS WELL.
CAN YOU, UH, IS IT, CAN YOU STATE WHAT YOUR QUESTION IS JUST SO WE'RE, YEAH.
SO, YOU KNOW, WHEN WE'RE DEVELOPING THIS, WE'RE GONNA LOOK FOR PARTNERSHIPS WITH OTHER ENTITIES AROUND, AND COULD YOU KIND OF ADDRESS HOW WE WOULD LOOK TO UTMB AND HOW WE WOULD LOOK FOR SOME OF THESE OTHER JOINT DEVELOPMENTS WITH THIS PROJECT? YEAH, I'LL LET MATT TAKE THAT.
YEAH, SO THERE'S A, THERE'S A HUGE OPPORTUNITY WITH UTMB.
UM, EVERYTHING FROM NAMING RIGHTS TO SPONSORSHIPS, UM, YOU NAME IT.
TYPICALLY FOR THESE SPORTS DISTRICTS, UM, YOU KNOW, THEY LEAN HEAVY ON PARTNERSHIPS LIKE THAT.
WE HAVEN'T FULLY EXPLORED WHAT THAT MIGHT LOOK LIKE AT THIS POINT.
BUT, UM, HAVING THAT LOCATED RIGHT THERE, UM, ESPECIALLY HAVING THAT COMMUNITY ICE SHEET COMPONENT, UM, THERE'S A POTENTIAL FOR, UM, MANY PARTNERSHIPS, NOT ONLY IN THE BUILT ENVIRONMENT, BUT WITH NAMING RIGHTS AND SPONSORSHIPS, ET CETERA.
THE COMMUNITY ICE SHEET WILL HELP GENERATE EMERGENCY CALLS TO UTMB.
SO,
UM, IT LOOKS LIKE YOU'RE TALKING A LOT ABOUT, YOU KNOW, YOU SKATING, ICE SKATING.
UH, I THINK PROBABLY THE ONLY THING AS A CITIZEN AND SOON TO KATRINA 24 MONTHS FROM NOW, I'LL RETURN TO BEING A NORMAL CITIZEN.
UM, THE ONLY, PROBABLY THE ONLY THING THAT'S REALLY LEAGUE CITY IS MISSING IS THAT DISCOVERY GREEN LIKE SPACE IN LEAGUE CITY.
AND I THINK REALLY EVERYTHING ELSE Y'ALL ARE TALKING ABOUT MIGHT GET PEOPLE WHO BUILD BUILDINGS EXCITED, BUT I DON'T KNOW HOW EXCITED, YOU KNOW, YOUR GENERAL LEAGUE CITY CITIZEN WOULD BE.
HOWEVER, IF YOU WERE TO LEAD IT OFF AS A, WE'RE GONNA BUILD DISCOVERY GREEN FOR LEAGUE CITY, YOU
[00:50:01]
MIGHT HAVE A BETTER SHOT AT THIS WORKING OUT.THAT'S JUST ME, UH, MY OPINION FOR WHAT IT'S WORTH.
BUT THIS IS YOUR 2 CENTS THERE.
SO I THINK IT'D BE HELPFUL ALSO IN OUR LAST, YOU KNOW, PORTION OF TIME HERE TO TALK ABOUT, YOU KNOW, WHERE WE ARE, WHAT ARE THE NEXT STEPS, HOW THIS PROGRESSES, AND MAYBE THAT'S TO YOU JOHN, OR STAFF.
SO WE, I THINK I HEARD EVERYTHING THAT YOU SAID, MAYOR, UM, ASK FOR NEXT STEPS, IS THAT CORRECT? MM-HMM,
UM, SO FROM HERE, YOU KNOW, WE NEED TO LOOK AT THE, THE PRACTICAL, THE MOST PRACTICAL DEVELOPMENT POSSIBLE, WHICH INCLUDES THE, THE PROGRAM THAT WE'VE KINDA SHARED WITH YOU GUYS TONIGHT.
UM, THEN WE BACK INTO A SITE PLAN THAT WORKS BASED UPON, UM, A LOT OF DIFFERENT VARIABLES.
AND HENCE THAT GETS YOU TO YOUR CONCEPTUAL PLAN THAT GIVES US AN IDEA OF WHAT THIS LOOKS LIKE, RIGHT? AND THEN WE HAVE TO WORK THROUGH DIFFERENT, UM, UM, AREAS WITHIN THE CITY TO MAKE SURE THAT THAT ACTUALLY FITS WITHIN THE PROGRAM OF THE CITY, AND THAT WE CAN DO SOMETHING LIKE THAT.
UM, AT THE SAME TIME, IN A PARALLEL PATH, WE'LL BE, UM, PUTTING THIS IN RENDERINGS, WE'LL BE MODELING THIS FINANCIALLY.
YOU KNOW, WE NEED TO MAKE SURE A, AS, AS A, A HOLISTIC GROUP AS WELL AS THE CITY THAT THE COSTS, THE IMPACTS, THOSE ARE ALL ALIGNED, THAT WE'RE WALKING DOWN A PATH THAT'S NOT TWO YEARS TO GET TO A NO, RIGHT? WE WANNA MAKE SURE THAT THIS IS SOMETHING THAT THE CITY WANTS, THAT THIS IS SOME, THIS IS SOMETHING, UH, THAT, UH, THE CITY IS, UH, EXCITED ABOUT.
UH, AND THEN ON TOP OF THAT, THAT WE CAN ACTUALLY, UH, EXECUTE, RIGHT? SO CONCEPTUAL PLAN RENDERINGS, MODELING AT THE SAME TIME, AND THEN DEPENDING ON CITY STAFF, UH, DEPENDING ON DIRECTION OF HOW THIS IS GOING.
BECAUSE THE LAST THING YOU WANNA DO IS BRING THIS OUT COMPLETELY PUBLICLY.
UH, IF YOU'RE NOT SURE WHAT'S HAPPENING WITH IT, AS WE ENGAGE, UH, THE PUBLIC STAKEHOLDERS ALONG WITH THE CITY FOLLOWING THEIR PATH IN THIS PUBLIC-PRIVATE PARTNERSHIP.
AND SO I THINK THERE'S GONNA BE, NEED TO BE MORE PUBLIC MEETINGS, BOTH IN A WORKSHOP SESSION AND IN PROBABLY MORE OF A, A COMMUNITY SENSE AS WELL, UH, YOU KNOW, DURING THAT ENTIRE PROCESS.
AND WE'RE, WE HAVE A TEAM THAT'S VERY FAMILIAR WITH THAT PROCESS AND HAPPY TO DO IT.
I DON'T KNOW HOW THAT WOULD WORK, BUT MAYBE, UH, OKAY.
WELL AT 5 53 THERE BEING NO FURTHER QUESTIONS.