[* A portion of this meeting is without audio *]
[3. PRESENTATION AND DISCUSSION REGARDING INCLUSION OF THE MIDLINE DEVELOPMENT IN THE BAYBROOK MUNICIPAL UTILITY DISTRICT]
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QUICKER, AND THEREFORE YOU CAN COME AND ANNEX AND DISSOLVE THE PORTION, THE MUD OVER THE PORTIONS OF LAKE CITY, UH, SOONER.AND THEN, UH, WE BELIEVE A BENEFIT IS BEAMER ROAD.
PROJECT COMPLETION LEADS TO AN OVERALL MOBILITY FOR YOUR LAKE CITY RESIDENCE.
UM, THE NEXT QUESTION WAS WHAT WOULD BE THE DISADVANTAGES FOR THE CITY TAXPAYERS? AND WE'RE NOT, I'M NOT TRYING TO BE CUTE HERE OR ANYTHING, BUT WE ALL SAT IN A, IN A CALL AND WE COULD NOT COME UP WITH A GOOD DISADVANTAGE FOR DOING THIS ANNEXATION, FOR ALLOWING THE MUD, FOR ALLOWING THIS PORTION TO BE ANNEXED INTO B MUD, IF, I'M SURE YOU GUYS MIGHT HAVE SOME THOUGHTS AND WE WOULD BE HAPPY TO ANSWER THOSE QUESTIONS.
BUT, BUT RIGHT NOW WITH THE, THE GUARDRAILS THAT YOUR STAFF HAS MADE SURE IS INCLUDED IN THESE UTILITY AGREEMENTS AND THE TRI-PARTY AGREEMENT, INCLUDING THE DOLLAR TAX RATE, UM, THE ISSUANCE OF DEBT FOR ONLY 30 YEAR CHUNKS.
AND ONCE WE ISSUE OUR FIRST SET OF BONDS THAT WERE CAPPED BASED ON THAT, UH, FINAL MATURITY OR 2060, WHICHEVER COMES FIRST.
UM, SO, YOU KNOW, WE HAVE, WE TRIED TO COME UP WITH DISADVANTAGES AGAIN, WE'RE HAPPY TO ANSWER ANY QUESTIONS YOU GUYS MIGHT HAVE OR YOU MIGHT HAVE THOUGHTS OF THAT.
UM, THE NEXT QUESTION WE GOT WAS WHAT ARE THE BENEFITS? OKAY, I DON'T TO THE DEVELOPER, I, I'M SORRY.
I HAVE NO IDEA WHERE THE, THE SLIDES ARE, BUT I THINK WE'RE UP AND RUNNING NORMALLY NOW.
WHERE YOU'RE OKAY THEN I'M GONNA, OKAY, GREAT.
THE BENEFITS TO THE DEVELOPER, AGAIN, BECAUSE WE'VE TALKED ABOUT, UM, HOW BM A HAS ALREADY HAS A HISTORY AND ESTABLISHED, UM, OPERATING BUDGET.
THERE IS REDUCED UPFRONT CAPITAL REQUIREMENTS FROM BROOKFIELD AND THE JOINT VENTURE.
UM, THEY CAN THEN ACCELERATE AND SPEND FOR BEAUTIFICATION AND AMENITY PRODUCT PROJECTS FASTER.
THIS IS GONNA PROVIDE A FASTER DEVELOPMENT DEVELOPER TIMELINE DEVELOPMENT TIMELINE.
WE BELIEVE IT WILL DECLINE THE TAX RATE, UM, QUICKER BECAUSE AGAIN, WE'VE ALREADY HAVE AN ESTABLISHED TAX BASE.
WE CAN ISSUE BONDS CHEAPER BECAUSE WE HAVE A CREDIT RATING, AND THEREFORE OUR TAX RATE WILL DECREASE QUICKER THAN IF WE HAD A STANDALONE STARTUP MONTH.
UM, WE THINK THAT INFRASTRUCTURE CERTAINLY ATTRACTS BUILDERS AND COMMERCIAL ANCHORS AS WELL.
SO ANOTHER QUESTION IS, HOW DO WE ENSURE THAT THE LEAGUE CITY TAXPAYERS AREN'T SUBSIDIZING THE OTHER RESIDENTS IN BM MUD? AND I THINK IT'S, UH, IT'S A GREAT QUESTION RIGHT NOW.
UM, BM U HAS A RATE ORDER THAT'S KIND OF LIKE THE SAME AS, YOU KNOW, THE CITY'S, UM, STATUS FOR WHAT YOU WOULD BILL FOR WATER AND SEWER.
AND THIS, AND THE RATE ORDER MATCHES THE CITY OF HOUSTON'S RATE ORDER.
WE ARE STUDYING THAT IN B MUD TO INCREASE THAT RATE ORDER.
WE ANTICIPATE OUR WATER BILLS WILL BE HIGHER THAN THE LEAGUE CITY RESIDENTS THAT LIVE IN MIDLINE, UM, BECAUSE WE NEED TO PAY FOR THE INFRASTRUCTURE IN B MUD WITH OUR WATER AND SEWER RATES.
THE RESIDENTS THAT MOVE INTO LEAGUE CITY, OF COURSE, WILL BE CITY RESIDENTS AND YOU WILL BE, UM, COLLECTING ALL OF THE WATER AND SEWER REVENUE FROM THOSE RESIDENTS.
THAT IS THE, THE STRUCTURE AND THE PLAN FOR THE DEVELOPMENT
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AS OF TODAY.UM, CURRENTLY OUR OPERATION AND MAINTENANCE TAX RATE IS, IS PRETTY HIGH HONESTLY, IN B MUD, LIKE WE TALKED ABOUT AT THE BEGINNING.
UM, IT IS 42 CENTS, WHICH IS A VERY HIGH IN THE PAST.
IN 2002, IT HAS BEEN AS LOW AS 6 CENTS.
WE DO NOT NEED 42 CENTS IN OPERATION AND MAINTENANCE TO OPERATE THE DISTRICT.
HOWEVER, BECAUSE OF THE LEGALITIES AND LEGAL ISSUES OF TRYING TO LOWER OUR TAX RATE AND THEN RAISE THE TAX RATE, WE HAVE KEPT OUR TAX RATE AT A DOLLAR 11.
THAT ALSO ALLOWS US TO PAY, WE HAVE A, A HEALTHY OPERATING BUDGET, AND THAT ALLOWS US TO PAY FOR PROJECTS OUT OF CASH INSTEAD OF ISSUING DEBT AS WELL.
SO WE HAVE DONE THAT IN BE MUD FOR MANY PROJECTS.
UM, AND THEN WE HAVE THE SALES AND USE REBATE, WHICH SUBSIDIZES THE OPERATING ACCOUNT AND WHICH WILL BENEFIT ALL BM MUD RESIDENTS.
AS MICHELLE MENTIONED, THERE ARE CAPS AND FINANCIAL SAFEGUARDS, UM, SET UP IN THE UTILITY AGREEMENT AND IN THE TRI-PARTY AGREEMENT WITH A HARD TAX CAP RATE OF A DOLLAR PER A HUNDRED DOLLARS WORTH OF ASSESSED VALUE AND THE AUTOMATIC DE ANNEXATION OF LEAGUE CITY FROM BM UD ONCE THE DEBT IS PAID, OR DECEMBER 31ST, 2060, WHICHEVER COMES FIRST, THE AVERAGE PRICE IN MIDLINE, UM, I'M PLAYING DEVELOPER HERE AND MATT CAN CORRECT ME, BUT HOMES ARE EXPECTED TO AVERAGE AROUND $500,000 WITH PRICE POINTS RANGING FROM 400 TO 700.
THE INITIAL OFFERINGS WILL PRODUCE PRODUCT FROM 40 TO 70 FOOT LOTS, AND THE TARGET MARKET INCLUDES MOVE UP BUYERS AND EXECUTIVE LEVEL FAMILIES.
UM, AGAIN, WE SENT THAT LOOK BOOK THROUGH THROUGH Y'ALL, OR I TRIED TO SEND IT TODAY IF YOU GOT A COPY FROM ME.
UM, AND WE'RE STARTING, B MUD IS STARTING, OR MIDLINE IS STARTING IN THE B MUD AREA AND THEN MOVING SOUTH.
AND SO THERE WILL BE DEVELOPMENT IN THE NEXT YEAR, UM, FOR MIDLINE, EVEN THOUGH IT WON'T BE IN THE CITY OF LEAGUE CITY, CITY LIMITS YET.
OUR FINAL THOUGHTS IS WE BELIEVE MIDLINE WILL BE THE NEW FRONT DOOR TO LEAGUE CITY AND TRANSFORMATIVE TO THE REGION.
WE BELIEVE THE STRUCTURE THAT WE'VE PRESENTED AND PROPOSED HELPS FINANCE THE INFRASTRUCTURE IN THE MOST EFFICIENT AND COST EFFICIENT MANNER AND EFFECTIVE MANNER.
WE WILL DELIVER DEVELOPMENT FASTER BECAUSE OF THE JUMPSTART AND ACCELERATED GROWTH AND VALUE IN B MUD.
AND WE ARE JUST HERE ASKING FOR YOUR SUPPORT FOR THE ANNEXATION COUPLED WITH THE APPROVAL OF THE UTILITY AGREEMENT TRI-PARTY AGREEMENT TO HELP CREATE MIDLINE IN LEAGUE CITY.
AND WE ARE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE THE WHOLE GROUP.
I MEAN, PLEASE, THE OBVIOUS, THE DISADVANTAGE RIGHT, IS THAT THE M AND O IS IS 42% TODAY, WHEREAS TYPICAL IN LEAGUE CITY WOULD BE FIVE TO 6%.
SO THAT'S A, IT'S PRETTY, IT'S A PRETTY BIG, UH, DISPARITY BETWEEN THOSE NUMBERS.
AND I THINK THAT THAT'S SCARY BECAUSE B MUD OPERATES A FULL WATER TREATMENT PLANT, RIGHT? THAT, THAT YOU GUYS OPERATE ALL THAT, UM, YEAH, FOR MUD, THAT, THAT I CAN LOOK TO CHRIS, BUT HE IS THE OPERATOR.
WE HAVE A WATER PLANT AND A SEWER PLANT, GET THE, YOU HAVE TO COME UP THERE.
SO YEAH, YOU OPERATE THE WATER AND SEWER PLANT, UH, WHICH I'M SURE IS EXPENSIVE.
AND RIGHT NOW, UH, EVERYBODY USES THOSE FACILITIES, RIGHT? AND THERE'S, I'M SURE THERE'S STAFF THAT COME WITH THAT AND EVERY OTHER, UH, PIECE THAT COMES WITH THAT.
OBVIOUSLY ANYBODY IN LEAGUE CITY IN, IN THOSE HOMES IN LEAGUE CITY, THEY'LL BE SERVICED BY US AND THEY'LL, WHICH IS OBVIOUSLY THE REASON WHY THE WATER RATES ARE GONNA BE DIFFERENT.
SO, UH, I GUESS HOW ARE WE GONNA KNOW THAT WE'RE NOT SUBSIDIZING INFRASTRUCTURE THAT WE'RE NOT USING? SO TO ANSWER THE FIRST QUESTION ABOUT HOW B MUD OPERATES RIGHT NOW, SO BE MUD IS A PARTY TO THE GCA BLACK HAWK REGIONAL WASTEWATER TREATMENT PLANT FACILITY.
SO THAT'S WHO HANDLES OUR WASTEWATER TREATMENT.
UM, WE HAVE A SERIES OF LIFT STATIONS THAT, THAT PUMP TO THE, THE FACILITY.
UM, AND THEN ON THE WATER SIDE WE'RE SERVICED OFF OF, UH, WE TAKE RAW WATER FROM THE CITY OF HOUSTON, FROM THE SOUTHEAST WATER PURIFICATION PLANT, UH, AS YOU GUYS DO AS WELL.
UH, AND THEN THAT FUNNELS INTO THE DISTRICT THROUGH SEVERAL LOCATIONS.
WE DO HAVE A WATER PLANT IN THE DISTRICT, UH, THAT SERVICES A PORTION OF THE DISTRICT.
AND THEN THERE'S ANOTHER PORTION OF THE DISTRICT THAT ACTUALLY TAKES WATER DIRECTLY FROM THE CITY OF HOUSTON.
SO, UH, BUT YES, B MUD AS IT'S, AS IT'S SET UP RIGHT NOW, HAS ITS OWN INFRASTRUCTURE.
UH, THE LEAGUE CITY PORTION WOULD HAVE ITS OWN INFRASTRUCTURE.
THEY'LL BE SEPARATED AND SEVERED BY 5 28.
UH, OUR INFRASTRUCTURE PLAN IN THE LEAGUE CITY PORTION OF WHAT COULD BE THE DISTRICT, UH, FITS THE CITY'S WATER AND WASTEWATER MASTER UTILITY PLAN.
WE PAY THE CAPITAL RECOVERY FEE.
SO ALL THAT WOULD BE COMPLETELY SEGREGATED.
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OWNED AND OPERATED AND BILLED BY THE CITY FOR EACH AND EVERY ONE OF THOSE LAKE CITY RE RESIDENTS.AND THEN BAYBROOK MUD, UH, OR WHAT WE'LL CALL OLD BAYBROOK MUD NORTH OF 5 28 WOULD BE HAVE ITS OWN WATER SEWER SYSTEM, ITS OWN, OWN UTILITY RATES AND WHATNOT.
NOW, I THINK THERE'S, THE PLAN IS TO GET THEM THE SAME.
UH, THAT WOULD BE IRRELEVANT TO US WHAT YOU GUYS DO ON THE NORTH SIDE, BUT I THINK THE M AND O CONSIDERATION BEING SO HIGH, RIGHT, 42% VERSUS FIVE OR 6%, PRETTY BIG DIFFERENCE.
AGAIN, UH, I'M STEVEN EUSTIS, I'M THE FINANCIAL ADVISOR FOR, UH, FOR BAYBROOK MUD NUMBER ONE.
THE, THE, THE MO RATE IS MUCH HIGHER THAN WE TYPICALLY SEE.
UH, IT'S HIGHER THAN BAYBROOK MUD ONE ACTUALLY NEEDS.
THE REASON FOR THAT, UH, IS BECAUSE WE'VE HAD A QUITE A, A, WHAT I'LL CALL A GAP, I GUESS, IN DEVELOPMENT IN THE DISTRICT.
UM, WE HAD THE BENEFIT OF HAVING A COMMERCIAL DISTRICT WHERE IN, UH, TAX RATE SENSITIVITY WAS NOT REALLY, UM, A BIG, YOU KNOW, WE DIDN'T HAVE RESIDENTS CONCERNED ABOUT THAT.
WE KNEW WE HAD 500 ACRES JUST WITHIN THE HOUSTON ETJ PORTION OF VA BRICK MUD OR THE EXISTING BA BRICK MUD, UM, THAT WOULD NEED TO BE DEVELOPED.
AND IF WE WERE TO, UM, REDUCE THE TAX RATE, BUT THE, BUT THE VALUE CREATIONS OCCURRED SINCE, YOU KNOW, 2017 OR SO, WE STOPPED SELLING BONDS, OR SINCE WE SOLD BONDS LAST I SHOULD SAY, UM, THEN WE WOULD END UP WITH A, YOU KNOW, 50 CENT TAX RATE THAT WOULDN'T SUPPORT ALL THE DEVELOPMENT THAT WOULD COME.
WE'D BASICALLY, UH, BY LOWERING THE TAX RATE, WE'D OFFSET ALL THE, ALL THIS GREAT VALUE WE HAVE ON THE GROUND THAT'S AVAILABLE TO HELP DEVELOP THIS 500 ACRES.
SO WHAT'S GONNA, WHAT WE WILL HAPPEN IS, AS WE STARTED OUR BOND PROGRAM BACK UP, WE SOLD $34 MILLION TODAY.
WE SOLD $16 MILLION LAST YEAR, ALL AGAIN FOR MIDLINE NORTH OF, UH, IN THE CITY OF HOUSTON, ETJ.
UM, THAT TAX RATE SHIFT WILL START COMING BACK TO WHAT YOU TYPICALLY SEE WITH MUDS, WHICH IS A HIGHER, MUCH HIGHER DEBT SERVICE TAX RATE AND A MUCH LOWER M AND O TAX RATE.
SO IT'S SORT, YOU'RE LOOKING AT A SNAPSHOT IN TIME.
I, I TOTALLY UNDERSTAND THE QUESTION, BUT THAT'S REALLY WHAT'S DRIVEN IS JUST WE'VE HAD, EVERYONE'S SEEN WHAT'S HAPPENED IN VALUE APPRECIATION SINCE, YOU KNOW, 19, 20 19 TO TODAY, WE'VE, WE'VE, WE'VE SEEN ALL OF THAT IN BAYBROOK, UH, ESPECIALLY WITH THE COMMERCIAL WE HAVE.
AND WE JUST, WE DON'T, WE DON'T NEED ANY PLACE TO, WE DON'T NEED ALL THAT DEBT SERVICE TAX RATE WITHOUT
SO I GUESS MY ASK WOULD BE TO COME BACK WITH PROJECTING WHERE THE M AND O IS GONNA END UP, UH, ONCE THIS STARTS DEVELOPING AND THE FIRST HOUSES GET INTO THE, YOU KNOW, GET ON THE GROUND WHERE YOUR M AND O IS GONNA BE, AND THEN, UH, AT THE SAME TIME COME BACK WITH A, WITH A, UH, A HOMESTEAD EXEMPTION THAT, THAT ROUGHLY MATCHES KIND OF WHAT WE DO IN LEAGUE CITY.
AND, AND THOSE WOULD BE MY TWO KIND OF ASKS TO TAKE OUT OF IT.
AND WE'VE, WE'VE RUN SOME NUMBERS ON, ON THE M AND OI, I DON'T HAVE THOSE IN FRONT OF ME TODAY, BUT I MEAN, THE, THE NUMBER IS, YOU KNOW, PROBABLY AROUND THAT 10 CENTS OR SO, IT MIGHT BE EVEN LESS THAN THAT, UH, ON THE M AND O.
UH, BUT WE DID NOT MODEL THE NUMBERS AND EVERYTHING.
WE BUILT, YOU KNOW, ALL THE BUILD OUT AT 42 CENTS, CERTAINLY.
UH, AND AGAIN, BAYBROOK JUST DOESN'T, DOESN'T NEED IT.
CERTAINLY WITH THE, I THINK LAST YEAR THEY GOT $2.4 MILLION IN, IN SALES AND USE TAX, JUST THE OPERATING SIDE.
UM, YEAH, I CAN IMAGINE HOW THAT'S SIGNIFICANT.
SO IF WE GET THE, KINDA THE MODEL AND THEN, YOU KNOW, HOW WE ARE, HOW WE'RE GONNA GUARANTEE THAT GOING FORWARD, AND THEN THE, THE PROPERTY TAX OR THE HOMESTEAD EXEMPTION AS WELL.
I WOULD, I WOULD LOVE TO SEE THAT ON THE FRONT SIDE, NOT JUST WAIT ON IT LATER.
I THINK THAT WOULD SWAY, YOU KNOW, HELP US MAKE THAT DECISION RIGHT NOW.
I THINK A BIGGEST, THE OTHER BIG PART RIGHT, IS JUST THAT IT'S, IT'S BEING PART OF THE CITY OF HOUSTON AND, AND NOT CREATING OUR OWN.
THAT'S, THAT'S, THAT'S, FRANKLY, IT'S PRETTY SCARY, RIGHT? WE DON'T TRY TO GENERALLY PARTNER ON A LOT OF THINGS WITH THE CITY OF HOUSTON AND DO THOSE THINGS.
SO, UH, SO IF YOU COME BACK WITH THOSE TWO, THAT'D BE GREAT.
BUT I THINK WE HAVE OTHER PEOPLE, I DON'T KNOW WHERE WE ARE.
WE DON'T HAVE CUES BEFORE WE PASS ON THAT.
CAN, CAN YOU GIVE US INFORMATION, WOULD YOU LIKE US TO INCLUDE THE SALES AND USE TAX ON WHEN WE TRY TO COME UP WITH THE O AND M TAX? SO RIGHT NOW, YOU KNOW, SURE IT WILL, IT WILL BE REDUCED SIGNIFICANTLY IF WE TAKE INTO ACCOUNT THE $3 MILLION THAT WE GET FROM THE CITY OF HOUSTON FOR THE SALES AND USE TAX.
IF WE DON'T TAKE IN THAT INTO ACCOUNT, THEN OUR O AND M TAX RATE WILL HAVE TO GO UP.
I THINK WE WANT TO TAKE INTO ACCOUNT ALL FORMS OF REVENUE WHEN YOU, WHEN YOU DO THAT.
I'VE GOT A SERIES OF QUESTIONS HERE.
THE, THE FIRST ONE BEING, UH, UM, WHAT HAPPENS TO THAT WATER PLANT WHEN THE, THE MUD BONDS ARE PAID OFF? DOES THAT GET TURNED OVER TO CITY OF HOUSTON, THE WATER PLANT TODAY? YEAH.
FOR BAYBROOK THE, NO, WE, WE OPERATE IT BE MUD OPERATE.
SO YOUR MUD IS GONNA CONTINUE FOREVER.
BE, BE MUD BILL UNLESS THE CITY OF HOUSTON COMES.
UM, BUT WE DO NOT CONTINUE IN IT FOREVER, CORRECT? YEAH.
WILL ALL THE RESIDENTIAL BE IN LINK CITY? NO.
SO 500 ACRES IS ALREADY IN B MUD.
AND IT IS ALREADY IN THAT, THAT MUD B MUD WITH WHETHER, YOU KNOW, WITHOUT ANYTHING, ANY ACTION YOU GUYS TAKE.
SO HALF OF WHAT IS CALLED MIDLINE WILL BE IN B MUD RIGHT NOW.
SO ROUGHLY HALF THE RESIDENTIAL WILL BE
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LEAGUE CITY.UM, AND THEN WHAT ARE THE VOTING RULES ON A MUD? SO ONCE THOSE HOUSES START GOING IN, UM, THE, THE CITIZENS GET TO VOTE ON MUD BOARD MEMBERS.
DOES THE COMMERCIAL HAVE ANY VOTES? NO, THE COMMERCIAL DOES NOT.
WE HAVE TO FOLLOW THE ELECTION LAW JUST LIKE EVERYBODY ELSE.
AND SO YOU HAVE TO HAVE A VOTER REGISTRATION.
UM, SO RIGHT NOW HOW MUCH OF THE M AND O IS SPENT ON SAY, LANDSCAPE MAINTENANCE AROUND THE COMMERCIAL AREAS? UM, I HAVE THE COPY OF THE BOOKKEEPER'S REPORT.
I'VE GOT LANDSCAPE ARCHITECT AND PARKS AND TRAILS MASTER PLAN, UM, $325,000 FOR AN AMENITY POND.
BUT I THINK THIS IS ONE OF THE PROJECTS THAT WE'RE DEVELOPING AND PAYING OUTTA CASH, INCLUDING THE BEAMER CULVERT ENHANCEMENTS.
YEAH, I'M, I'M NOT ASKING ABOUT THE ONE TIME DEVELOPMENT PROJECTS.
FINE, I MEAN, ONGOING LANDSCAPE MAINTENANCE.
I, I CAN GET YOU THAT ANSWER, BUT I DO AND IS THERE A COMMERCIAL MANAGEMENT DISTRICT IN PLACE? IT'S, SORRY, IT'S $20,000 ANNUALLY IS WHAT I HAVE FOR LANDSCAPE MAINTENANCE AND BUDGET.
THAT'S MUCH BETTER THAN I THOUGHT IT WAS GONNA BE.
UM, BECAUSE I WOULD ASSUME ONCE HOMEOWNERS GET IN, THEY'RE GONNA IMMEDIATELY STOP MAINTAINING THE LANDSCAPING FOR THE COMMERCIAL.
UM, ONCE THEY CONTROL THE MUD BOARD IS THERE, THERE'S NO REASON THEY WOULDN'T, I WOULD, I WOULD ENCOURAGE OUR CITIZENS TO RUN FOR THE MUD BOARD AND DO THAT.
UM, SO I DID, I WOULD HOPE Y'ALL HAVE A PLAN FOR THAT.
UM, THE HOUSTON SALES TAX RETURN TO THE MUD, HOW IS THAT LOCKED INTO EXISTENCE? IT'S, IT, IT'S CALLED A STRATEGIC PARTNERSHIP AGREEMENT AND IT EXPIRES IN 20, LET ME GET THIS RIGHT, 20, WHAT IS 2030, RIGHT? I HAVE TOO MANY DATES GOING IN MY HEAD.
WE HAVE TO GO BACK TO THE CITY OF HOUSTON AND SAY, WOULD YOU LIKE TO PARTNER WITH US TO EXPAND THAT STRATEGIC PARTNERSHIP AGREEMENT PAST 2030? THEY CAN SAY NO, BUT THEN THEY LOSE A PENNY OF THE SALES TAX AS WELL.
LIKE THEY WOULD NOT GET ANY OF THE SALES AND USE TAX.
WE SPLIT IT BETWEEN THE CITY OF HOUSTON AND THE MUNICIPAL UTILITY DISTRICT.
SO IF, IF THEY DON'T PARTNER, UM, SO WHEN YOU BRING BACK THE NUMBERS ON, ON WORKING OUT THE M AND O PER SE INTO EVERYTHING ELSE, RUN US TWO CASES, ONE WHERE THEY DON'T EXTEND THAT PARTNERSHIP, UM, THEN, UH, MAN, I WISH I HAD BETTER HANDWRITING.
UM, AS FOR THE HOMESTEAD EXEMPTION, UM, I'LL, I'LL SAY THIS, WHEN THE MUDS WE HAVE HERE IN LEAGUE CITY, THE ONES THAT SPRING UP NEW AND AND ARE FOR PURELY RESIDENTIAL, THEY OFTEN DON'T ROLL IN THE HOMESTEAD EXEMPTION TILL THE HOMEOWNERS TAKE OVER.
UH, 'CAUSE OBVIOUSLY THE DEVELOPERS DON'T CARE.
UM, IT'S USUALLY ABOUT 10 YEARS IN UNTIL YOU START SEE 'EM ROLL IN THE, THE HOME STAY EXEMPTION AND THEN THEY KIND OF PHASE IT IN SLOWLY.
THEY DON'T JUMP RIGHT TO THE 20% OR WHATEVER THE CAP ON IT IS.
UM, BUT I WOULD LIKE TO SEE THE NUMBERS IF Y'ALL PUT THAT IN PLACE BEFORE THE HOMEOWNERS HAD TO DO THAT.
UM, BECAUSE I THINK THAT MIGHT GO A LONG WAY, ESPECIALLY FOR THOSE OF US UP HERE WHO ARE MAKING SURE WE'RE LOOKING OUT FOR THE FUTURE LEAGUE CITY CITIZENS WHO MIGHT BE IN THIS.
UM, KNOWING THAT THAT EXEMPTION GETS PUT IN EARLY, MIGHT MIGHT BE SOMETHING THAT, THAT MAKES IT CLEAR TO US THAT THIS IS ADVANTAGEOUS FOR, FOR OUR FUTURE RESIDENTS, NOT JUST FOR THE DEVELOPERS AND EVERYONE ELSE INVOLVED.
UM, YES, WE'LL HAPPILY DO THAT.
AND I WOULD ALSO POINT OUT MANY MUDS DON'T HAVE A HOMESTEAD EXEMPTION BECAUSE THERE'S NOT ENOUGH COMMERCIAL TO SWAP THAT VALUE.
SO INSTEAD THEY LIKE TO REDUCE THEIR, THEIR TAX RATE, THEY LIKE TO SHOW A REDUCTION INSTEAD OF KEEPING IT HIGHER, BUT GIVING A HOMESTEAD EXEMPTION.
SORRY, YOU GUYS DON'T ACTUALLY NEED A MUD THOUGH, RIGHT? I MEAN, IT SOUNDS LIKE Y'ALL ALREADY HAVE A MUD THAT HAS A LOT OF MONEY IN IT AND I MEAN, YOU COULD JUST BUILD IT FROM THERE AND THEN PASS THE SAVINGS OR JUST PASS THE INFRASTRUCTURE COSTS ON IN THE PRICE OF THE HOUSE, COULDN'T YOU? WELL, I'M, I WANNA MAKE SURE I UNDERSTAND YOUR QUESTION.
THERE'S 449 ACRES THAT WILL BE IN THE CITY OF LEAGUE CITIES, CITY LIMITS.
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WE'VE GOT, WE'VE GOT A NUMBER OF DEVELOPMENTS THAT DON'T HAVE A MUD AND THEY JUST DO THE INFRASTRUCTURE AND PUT THAT PRICE IN THE HOUSE.SO YES, YOU GUYS COULD DO THAT, RIGHT? IF WE, IF WE SHOT IT ALL DOWN THE MUD, HUH? THE DEVELOPERS RIGHT THERE, YOU KNOW.
AND I'M SURE LIKE OTHER DEVELOPERS BEFORE ME, I THINK THAT THAT WOULD, UH, THAT WOULD PROBABLY BE VERY CHALLENGING, UH, TO DEVELOP, YOU KNOW, 1200 LOTS AND ALL THE INFRASTRUCTURE IT WOULD TAKE TO BRING THAT ON, UH, WITHOUT THE RESOURCES THAT A, THAT A MUD NEW OR, OR EXISTING, UM, THAT WOULD PROBABLY BE BE A PRETTY CHALLENGING TO GET THIS PROJECT OFF, OFF THE GROUND.
I GUESS THE ONLY THING THAT BOTHERS ME ABOUT THIS IS THE, THE MEDIUM VALUE OF THE HOMES AND THE LONG, LONG-TERM HEALTH OF THAT DEVELOPMENT.
YOU KNOW, JUST, YOU KNOW, WE HAVE NO PROBLEM WITH YOU DEVELOPING.
IT'S JUST, UH, WHEN YOU COME HERE ASKING FOR MUD SUPPORT FROM US, IT HAS, YOU KNOW, I FOUGHT 'EM OFF, BUT I'VE BEEN WRONG ONCE OR TWICE.
I KNOW, I KNOW WEST RANCH, YOU CAN ACTUALLY SEE THE QUALITY IN THE DEVELOPMENT.
AND I THINK THAT WAS BECAUSE WE ENDED UP, YOU KNOW, HELPING THEM OUT WITH THEIR MUD, BUT JUST LOOKING AT THE COSTS, THE HOUSE RIGHT UP THE GATE, IT JUST, UH, IT JUST GIVES ME PAUSE.
I KNOW THAT, BUT SEAN, ARE YOU, ARE YOU THINKING IT'S LESS AFFORDABLE AT WHERE WE'RE PLAYING? NO, YOU NEED, YOU WOULD, I MEAN, WHAT'S OUR BREAK EVEN NOW, JOHN? JOHN? NO, THE BREAK EVEN VALUE ON, REMEMBER WE, YEAH, IT'S, THE AVERAGE VALUE IS 350,000 ANDREW THREE 50.
I DON'T KNOW, I WOULD JUST LIKE TO SEE HIGHER QUAL, YOU KNOW, HIGHER VALUE, BUT I REALIZE THAT YOU'RE JUST SO CLOSE.
I MEAN, THIS IS SO FAR OUT THAT I PROBABLY WON'T BE AROUND WHENEVER MY DEVELOPER SET.
WELL, I, I THINK JUST TO BE CLEAR, ARE YOU, ARE YOU WANTING THAT VALUE TO INCREASE? SO WHERE WE WERE SETTING THE TABLE, I MEAN, REMEMBER THIS IS A 10 TO 12 YEAR PROJECT.
IF YOU'RE STAGGERING AND YOU'RE TRYING TO DECIDE WHETHER TO WHERE TO PUT THE HIGH VALUE HOMES, I'D WANT 'EM DOWN SOUTH.
AND, AND ANOTHER QUESTION, THIS IS JUST PURELY, YOU KNOW, 'CAUSE YOU'RE A DEVELOPER AND I'VE ALWAYS WANTED IN THIS SITUATION, WHY WOULDN'T YOU JUST INCORPORATE YOUR OWN CITY? YOU'VE GOT EVERYTHING BUT A COP, YOU KNOW, AND Y'ALL PROBABLY COULD HIRE COPS REAL CHEAPLY.
SO I WAS JUST CURIOUS WHY YOU WOULD CHOOSE TO, TO TRY TO GET FRIENDSWOOD AND WEBSTER AH, YOU KNOW, HERE IN LEAGUE CITY ESPECIALLY, YOU KNOW, WHY NOT JUST INCORPORATE OR IS THAT TOO HARD WITH THE, I MEAN, I WOULD, I WOULD LEAVE THAT FOR, IT'S, IT'S HELPFUL.
MANY, MANY CITIES, UM, LIKE MISSOURI CITY, I WOULD SAY ARE SMART TO THINK LIKE THAT AND MAKE SURE THAT THEY PUT IT IN THEIR CITY CONSENT.
THAT I CAN'T INCORPORATE THAT.
SO THERE ARE PLACES WHERE IN THE HOUSTON AREA WHERE YOU'RE NOT ALLOWED FOR THAT, THEY PUT THAT IN THEIR CITY CONSENT.
SO GREAT THOUGHT, BUT IT'S ALSO EXTREMELY EXPENSIVE.
WE HAVE TO HAVE STAFF AND EMPLOYEES MUDS ONLY HAVE CONSULTANTS DON'T PAY PENSIONS, THINGS LIKE THAT.
ONE, I MAY NEED CHRIS CARPENTER ANSWER.
UH, FIRST OFF, FIRST OFF, WHILE HE'S COMING UP, I WANNA ASK, HOW LONG WILL YOU BE GOING BEFORE YOU'LL BE ADVOCATING FOR HOMEOWNERS TO GET ON THE BOARD? I MEAN, WE ALWAYS ALLOW FOR HOMEOWNERS TO BE ON THE BOARD.
I'M TALKING ABOUT SOMEBODY LIVING IN A HOME IN LAKE CITY AS SOON AS THERE'S A HOMEOWNER AS SOON AS THEY APPROACH AND THEY, THEY ACTUALLY HAVE A DESIRE TO JOIN THE MUD BOARD.
BUT, BUT THE THING IS, I'LL TELL YOU FOR A FACT.
'CAUSE I, PRIOR TO GETTING ON COUNCIL, I WAS THE FIRST MEMBER TO GET ON MY MUD BOARD, WHICH AS SOON AS I GOT ON ANOTHER HOMEOWNER GOT ON, THE OTHER THREE BOARD MEMBERS BAILED IMMEDIATELY AFTER GETTING ON.
WE LOWERED THE TAX RATE BY NICKEL THAT YEAR BECAUSE THE DEVELOPERS GUYS WERE NOT WANTING TO, TO LOWER THE RATE.
WE'RE CURRENTLY, AFTER FOUR YEARS OF BEING FOUR YEARS OR THREE YEARS OF BEING HOMEOWNER CONTROLLED, WE HAVE DROPPED OUR RATE 11 CENTS BECAUSE HOMEOWNERS LOOK AT IT AS WELL, WE'RE GONNA DO WHAT'S BEST FOR THE HOMEOWNERS, NOT NECESSARILY WHAT'S BEST FOR THE DEVELOPER.
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ONE OF THE PROBLEMS I HAVE, AND IT'S BEEN BROUGHT UP AND IT'S REALLY MADE ME THINK ABOUT IS HOW MUCH OF THIS TAX RATE IS GOING TO BE GOING TO YOUR PLANTS, YOUR WATER PLANTS AND YOUR SEWER PLANTS AND STUFF LIKE THAT TO MODIFY THEM WHEN WE'RE NOT GONNA BE USING OUR CITIZENS ARE NOT GONNA BE USING YOUR WATER PLANTS AND YOUR SEWER PLANTS.THEY'RE GONNA BE USING OUR INFRASTRUCTURE.
SO THE RATE, YOU'RE AT THE 1.11, WHICH YOU SAID YOU'RE GONNA DROP TO ONE IMMEDIATELY, BUT HOW MUCH OF OF OUR CITIZENS ARE GONNA BE PAYING THIS TAX RATE TO DEVELOP YOUR WATER SYSTEM AND SEWER SYSTEM ON THE OTHER SIDE? DOES THAT MAKE SENSE WHAT I'M SAYING? IT DOES, AND I, I KNOW STEVEN, STEVEN CAN COME UP HERE AND HE CAN GIVE YOU A LITTLE BIT MORE OF A FORWARD PROJECTION.
WHAT I WOULD SAY IS, UH, THE CITY OF HOUSTON SIDE IN NORTH OF 5 28, I MEAN IT STANDS ALONE AS ITS OWN VALUE TEST, BUT YOU'RE ONE MUD, IF WE INCORPORATE YOUR, IT'S ALL GONNA BE ONE MUD.
YOU'RE SAYING THAT YOU'RE GONNA CHARGE DIFFERENT RATES FOR THE LEAGUE CITY PORTION VERSUS THE HOUSTON PORTION NOT GONNA HAVE, HAVE DIFFERENT TAX RATES.
THEY MAY HAVE A DIFFERENT WATER RATE, BUT YOU'RE, YOU'RE GONNA HAVE THE SAME TAX BASES.
WHAT I WOULD SAY IS WHEN BA ENTERS INTO THE LEAGUE CITY PORTION, WHAT WAS IT? SOMEWHERE CLOSE TO 50 TO $70 MILLION.
SO, SO WHAT ARE YOU REFERRING TO? I DON'T, I DON'T, THERE WAS A MEMO THAT WAS SENT TO STAFF LAST YEAR, BUT WHAT IT STATES IS, SO THE WAY DEVELOPMENT'S GOING TO OCCUR, IT'S GONNA START IN THE CITY OF HOUSTON, E CJ AREA, THE EXISTING V MOD BOUNDARIES WILL DEVELOP FIRST.
SO LEAGUE CITY RESIDENTS AREN'T GONNA BE PAYING FOR THAT AT ALL BECAUSE THEY WON'T EVEN BE AROUND WHEN THAT, THAT INFRASTRUCTURE DEVELOPS.
NOW THOSE BONDS WILL BE SOLD OF COURSE, AND, AND, AND THEY'LL HELP PAY FOR DEBT SERVICE IN THE FUTURE.
BUT THAT THE, THE CITY OF HOUSTON WILL HAVE ALREADY CREATED THE VALUE THAT SUPPORTS THOSE BONDS TO BEGIN WITH WHAT, WHAT MATT WAS REFERRING TO IN THAT MEMO, WE RAN AN ANALYSIS THAT SAID, LET'S PRETEND WE JUST CUT OFF THE CURRENT BOUNDARIES OF, OF BM A AND STOP IT WHEN IT COMPLETES.
OUR PROJECTIONS SHOW THAT AT THE, WHEN THEY FINISHED COM DEVELOPMENT AND FINISHED BUILD ON BM MUD, THEY WOULD HAVE ABOUT, I'M GONNA GO FROM MEMORY, UH, LIKE $46 MILLION IN AVAILABLE BONDING CAPACITY.
THIS IS WITHOUT ANY VALUE FROM LEAGUE CITY AND ABOUT $30 MILLION IN CASH ON HAND WHEN THEY'RE FINISHED IN THE NORTH.
AND THEN WE START IN LAKE CITY.
AND THAT DISTRICT WILL, THAT, THAT AREA WILL START WITH 70 ISH, 70, I THINK $73 MILLION BETWEEN MUD CAPACITY OR BOND CAPACITY AND AND CASH TO HELP FINANCE THE INFRASTRUCTURE SOUTH OF 5 28.
A START OF MODE WOULD START FROM ZERO AND ACTUALLY WE'D BORROWING MONEY FROM THE DEVELOPER TO DO THAT.
THAT'S ONE OF THE, THE BIGGEST ADVANTAGES.
SO, SO WHEN YOU LOOK AT, I GUESS TO LOOK AT THIS FROM A VERY HIGH LEVEL, WE'VE GOT A A KNOWN SET OF COSTS, RIGHT? WE'VE GOTTA DEVELOP WATER, SEWER, DRAINAGE, ROADS, PARKS, WHATEVER THAT'S GONNA HAPPEN, WHETHER YOU HAVE ONE MUD OR TWO.
WHAT'S DIFFERENT HERE IS THE REVENUE STREAMS WE HAVE AVAILABLE TO US WITH ONE MUD, YOU'VE GOT OBVIOUSLY TAX RATE, WHICH WE'VE TALKED ABOUT.
YOU'VE GOT SALES AND USE TAX, YOU'VE GOT WATER AND SEWER RATES IN THE NORTH THAT BEEN IT'S DISTRICT AND THE SOUTH AND, AND THE LAKE CITY AREA, THAT WOULD BE Y'ALL'S.
UM, BUT IF YOU'RE JUST SOUTH, IF YOU HAVE A STANDALONE MUD SOUTH OF OF 5 28, THEY ONLY HAVE TAX RATE.
HAS TO FUND, HAS TO FUND ALL THE WATER, THE WATER, SEWER, DRAINAGE, PARKS, ROADS, IT'S GOTTA FUND THE OPERATIONS THAT DOES, IS RESPONSIBLE FOR, HAS GOTTA COME OUTTA THE TAX RATE AND IT HAS NONE OF THE WATER AND SEWER TO DO THAT.
IT'S ALL A HUNDRED PERCENT TAX RATE.
SO WHILE, WHILE THE COST, THE OPERATIONAL COSTS MAY BE LESS 'CAUSE Y'ALL ARE TAKING ON THAT THROUGH THE WATER AND SEWER RATES, THERE ARE THINGS THAT THAT THAT, YOU KNOW, WHETHER IT'S DETENTION POND MAINTENANCE OR ROAD MAINTENANCE AND THINGS LIKE THAT THAT COME OUT OF THE MUD, THAT'S ALL COMING OUTTA, SORRY, ALL COMING OUTTA THE TAX RATE WITH THE COMBINED DISTRICT.
WE'VE GOT LOTS OF, LOTS OF REVENUE ISSUES TO PULL FROM.
I I THINK WHAT HE'S GETTING IS MM-HMM
IF IT WAS DONE AS AN INDEPENDENT MUD, WHAT WOULD BE THE, THE, IF YOU ASSUME A CERTAIN AMOUNT OF REVENUE IS NEEDED FROM THAT PORTION, WHAT WOULD THE TAX RATE BE FOR THE LEAGUE CITY PORTION IS AN INDEPENDENT MUD, WHAT WOULD IT BE IF THEY WERE PART OF THE COMBINED MUD? YOU'RE TELLING US THAT, WELL, YOU KNOW, YOU HAVE ALL THESE COSTS OFFSET, BUT WE ALSO KNOW THAT UNLESS THEY'RE RUNNING, ARE Y'ALL RUNNING THAT WATER PLANT AND HANDLING THE SEWER AS A WHOLLY FUNDED UTILITY WHERE IT COMES OUT OF THEIR UTILITY BILLS? OR ARE YOU SUPPLEMENTING WITH SOME OF THE MUD PROPERTY TAX? UH, IT'S BEING SOMETHING WITH, WITH, IT'S MOSTLY FUNDED FROM THE WATER AND SEW RATES, WHICH AS ANGIE SAID, WE'RE GONNA INCREASE HERE SHORTLY TO MAKE SURE THEY'RE ABOVE Y Y'ALL'S RATES.
AND THEN WE ALSO HAVE SIGNIFICANT, LIKE I SAID, THE SALES AND USE TAX IS $2.4 MILLION JUST IN OPERATING SIDE AND CONCEPTUALLY THAT MAKES SENSE, BUT JUST SHOW US THE NUMBERS.
TO SEE THAT WE'RE GETTING THE BARGAIN NOT THE OTHER WAY AROUND IN 2023, JUST TO GIVE Y'ALL AN IDEA, JUST TO GIVE YOU SCALE AND I, I KNOW THAT 2024 BUDGET'S ALSO, LEMME SAY 2024, AGAIN, FORGIVE ME, I'M GOING FROM MEMORY.
OUR, OUR, OUR BUDGET RAN A $1.7 MILLION DEFICIT THAT INCLUDED ALMOST $9 MILLION OF CAPITAL OUTLAY, WHICH WE DON'T HAVE TO DO WITH THE BONDING PROGRAM, WHICH WE'LL PULL OUT.
WE'RE WE'RE TRYING TO SPIN SOME OF THE CASH DOWN.
SO WITHOUT THE CAPITAL OUT WAY, WE'RE RUNNING A $7 MILLION SURPLUS ON OUR, ON OUR OPERATING
[00:40:01]
THAT'LL COME DOWN AS WE LOWER OUR TAX RATE.WE DON'T NEED TO RUN THIS SORT OF SURPLUSES.
THAT'S PART OF THE M AND O WE TALKED ABOUT.
MY POINT IS WE HAVE, WITH ALL THIS REVENUE COMING IN, THE THE LIKELIHOOD IS THAT THE NORTH IS GONNA SUPPLEMENT THE SOUTH VERSUS THE I JUST YEAH, BUT WE CAN PROVIDE THAT FIRST TO YOU.
WE UNDERSTAND THE CONCEPTION, RIGHT? YEAH.
WE JUST WANNA SEE NUMBERS UNDERSTOOD BECAUSE THE WAY I'M LOOKING AT IT, IT'S GONNA BE DIFFERENT.
NOW THAT WE'VE BEEN TALKING ABOUT THE TAX RATE AND STUFF.
THE NEXT THING I HAVE A QUESTION ABOUT, AND THIS IS ONE FOR CHRIS CARPENTER, 'CAUSE Y'ALL ARE TALKING ABOUT DOING 40 FOOT LOTS IN THIS DEVELOPMENT.
HOW MUCH OF THIS DEVELOPMENT IN LEAGUE CITY IS GONNA BE, I'M NOT KEEN ON 40, 45 FOOT LOTS PERIOD.
HOW MUCH OF THIS DEVELOPMENT IN LEAGUE CITIES ARE THEY PROJECTING TO BE 40 FOOT LOTS? DO YOU HAVE THE NUMBER? I MEAN IT'S LESS THAN 20%.
I BELIEVE WE'VE, WE'VE DONE A KIND OF A, A DOUBLE CAP IN THE PUD.
THE FIRST CAP SAYS THAT ONLY 50% OF THE LOTS CAN BE 50 FOOT OR SMALL.
RIGHT WITHIN THAT 50%, ONLY 15% OR MAYBE TOPS 20% CAN BE SMALLER THAN A 50 FOOT LOT.
UM, AND THEN THAT COULD BE A 45.
UM, WE ALSO GET INTO, UH, IF THERE, IF THEY'RE A, I I DON'T, I DON'T GET THIS EXACTLY RIGHT, I'M DOING THIS FROM MEMORY, BUT IF I REMEMBER CORRECTLY, IF IT'S A 40 FOOT LOT OR SMALLER, IT HAS TO BE AN ALLEY LOADED LOT SO WE DON'T GET ALL THE GARAGES AND SO FORTH.
SO YOU HAVE A BETTER STREET VIEW.
UH, SO IF IT'S A 40 FOOT LOT, IF IT'S A 35 FOOT LOT, IF IT'S A TOWN HOME, ANYTHING LIKE THAT REQUIRES IT TO BE ALLEY LOADED SO YOU DON'T GET JUST A WHOLE BUNCH OF GARAGES AND YOU GET A, YOU KNOW, A WHOLE BUNCH OF CARS ON THE STREET.
UM, SO THERE ARE A LOT OF CAPS THAT MAKE SURE YOU DON'T GET A DEVELOPMENT THAT IS SIGNIFICANTLY SMALLER.
LOTS AND, AND Y'ALL ARE PROJECT, I'M SORRY, HANG ON A SECOND.
YOU'RE PROJECTING A MINIMUM COST OF HOW MUCH FOR THESE HOUSES? I I DIDN'T WRITE IT DOWN.
SO I'M ASKING, SO YOU'RE PROJECTING A $400,000 COST FOR A HOUSE ON A 40 FOOT LOT? YES SIR.
I MEAN WE, WE, WE CURRENTLY OPERATE MASTER PLANS AROUND THE CITY.
YOU KNOW, ONE OF THEM IS, IS ONE OF THE LARGEST MASTER PLANS IN THE CITY.
UH, IT SELLS BETWEEN 500 TO 600 HOMES A YEAR.
UH, WE OFFER 40 FOOT PROGRAMS IN THERE, UH, ALL THE WAY UP TO 80 FOOTS IN CUSTOM.
UM, AND THEY AVERAGE ABOUT 4 25 TO FOUR 30 ON AN A SP.
AND THEN, YOU KNOW, EVERYTHING KIND OF PICKS UP FROM THAT POINT.
BUT WHEN YOU TAKE THE COST AND YOU TAKE THE WHOLE PROGRAM IN ITS TOTALITY, YOU'RE JUST TRYING TO FIND HOMES FOR DIFFERENT PEOPLE IN DIFFERENT LIFE FORMATIONS TO REALLY PRO PROVIDE, YOU KNOW, I I I WOULD SAY A HEALTHIER COMMUNITY THAN IF YOU JUST GO OUT AND DO SO.
OKAY, HERE'S MY QUESTION THOUGH.
HAVE WE APPROVED THOSE AS A CITY? YES SIR.
YOU'VE SEEN 'EM IN, UM, BASICALLY THE LAST THREE PUDS YOU'VE SEEN, YOU'VE SEEN THE SPECIALTY PRODUCT PROPOSED, HAVEN'T SEEN 40 FOOT ONE IN LEGACY.
THEY HAVE IT, WESTLAND RANCH, THEY HAVE IT, DUNCAN, THEY HAVE IT.
SO IT'S BEEN IN ALL THE LAST PUDS THAT HAVE BEEN PROPOSED TO THE CITY AND IT'S, IT'S ABOUT, IN THIS ONE IT'S ABOUT 25% OF THE TOTAL LOT COUNT BEING THOSE FORTIES.
AND IT'S, IT'S LIMITED TO 50% LIKE MATT SAID, UM, OF 50 FOOT OR LESS.
WHAT'S SAMARA? THE SAMARA PART, THE NEWER PART.
THOSE ARE 40 FOOT, THOSE ARE FIFTIES AND SIXTIES.
SO I GUESS WHAT, WHAT I'M LOOKING AT IS YOU'RE PROJECTING THAT COST FOR A HOUSE, BUT YET THEY CAN GO A LITTLE BIT WEST, EVEN IN THE NEWER DEVELOPMENT, GET A, A HOUSE FOR THE SAME COST WITH A 50 FOOT LOT, A BIGGER LOT MORE YARD, ET CETERA.
WELL, ONE ONE LITTLE BIT OF CLARIFICATION, UM, YES SAMARA IS FIFTIES AND SIXTIES, BUT SAMARA IS PART OF THE DUNCAN TRACT AND IF I RECALL CORRECTLY, ON THE SOUTH SIDE OF WHERE THE GRAND PARKWAY WILL BE IN ANOTHER PROJECT WITHIN DUNCAN CALLED B DEMAR, I THINK WE DO HAVE 40 FOOT LOTS IN THERE, DON'T WE? THERE WAS THE OPTION FOR TOWN, THE OPTIONS FOR, LET'S TALK ABOUT THE ONES THAT WOULD BE NORTH.
THE ONES THAT ARE ALREADY BEING BUILT THAT ARE, THAT ARE HEADING TOWARDS LANDING RIGHT NOW.
BUT NORTH OF IT, THOSE ARE, THOSE ARE PRETTY SMALL.
AND THIS IS REALLY, AGAIN, IT'S, IT'S A TYPE PRODUCT NOW, BUT 10 YEARS, 15 YEARS DOWN THE ROAD.
AND THAT'S WHAT YOU DON'T WANNA BUILD HERE, RIGHT? I DON'T IF I'M GOING BELIEVE LIKE IF I, IF I'M GONNA HAVE TO GIVE ON A MUD, IT NEEDS TO BE AN, AN EXTREMELY HIGH END PRODUCT.
YEAH, I WOULD TEND TO AGREE WITH THAT.
BUT I MEAN I THINK THERE IS TOWN HOMES AND ZERO LOT LINE HOMES THAT ARE HIGH END.
RIGHT? I MEAN YOU CAN SEE IT IN FAIRWAYS.
THERE'S A COUPLE OTHER PLACES THAT THEY'RE LIKE THAT.
SO WOULD YOU GUYS SEND US THE, THE PLAN AS WELL, PUT THAT AS ANOTHER
[00:45:01]
TAKEAWAY.SEND US THE LAND USE PLAN AND WHAT WE'RE LOOKING AT SO WE CAN CHEW ON THOSE NUMBERS AND THE TERMINATION OF THE MUD IS AND WHEN, WHEN WILL THE TERM THE MUD TERMINATE, AT LEAST FOR LAKE CITY? THE LAKE CITY PORTION.
I DON'T CARE ABOUT THE HOUSTON PORTION.
LAKE CITY PORTION 20 60, 20 16 OR, OR THE EARLIER OF WHENEVER WE SATISFY OUR DEBT.
SO WE'RE LOOKING AT THE LONG IS DEAD ISSUED JUST 30 YEARS.
OTHER QUESTIONS? QUESTIONS? THAT'S ALL I HAVE.
WE'RE RUNNING UP AGAINST, WE'RE RUNNING AGAINST THE TIME.
ANYBODY ELSE? THAT'S ALL I HAVE.
UH, THE TAKEAWAYS I HAD WAS TO UH, GET US THE PLANS ON A COMBINED VERSUS SEPARATE THE FINANCIALS AND HOW THAT KIND OF GOES OUT FROM THERE.
UH, WHAT KIND OF GUARANTEES WE HAVE ON THE M AND O AND CROSS SUBSIDIZATION FROM THE PROPERTY TAX, UH, HOW THAT WORKS OUT AND WHAT KIND OF GUARANTEES WE CAN PUT IN INTO THAT.
AND THEN, UH, LOOKING AT THE HOMESTEAD EXEMPTION AND WHAT THAT WOULD LOOK LIKE GOING FORWARD.
AND THEN LAST ONE I GUESS WOULD BE THE LAND USE PLAN AS WELL.
AND I THINK OUR STAFF ALREADY HAS THAT ONE, SO THAT MIGHT BE A TAKEAWAY FOR STAFF.
YEAH, WE CAN STILL PACKAGE EVERYTHING.
THANK YOU FOR YOUR TIME, MAYOR.
GIVEN THE NUMBER OF QUESTIONS THAT WE HAVE, DO YOU WANT ANOTHER WORK SESSION OR DO YOU WANT IT TO BE PRESENTED? WHY DON'T WE, WHY DON'T WE JUST SEND IT TO EVERYBODY AND THEN MAYBE LOOK AT THE MEETING AFTER NEXT MEETING.
SO I GUESS WHAT WOULD THAT BE THE SECOND MEETING IN JUNE TO PUT THIS BACK ON THERE AND, UH, BARRING ANYBODY HAVING A WHOLE NOTHER ROUND OF QUESTIONS WHEN THEY GET THE, UH, WHEN THEY GET THE PACKET, UH, WE'LL SAY NO FOR NOW ON THE WORK SESSION.
BUT IF THERE'S A, A, A LOT OF QUESTIONS THAT COME UP, THEN WE'LL KEEP THE OPTION TO ADD IT TO THE NEXT MEETING.
AND AT 5 53, THERE'LL BE NO FURTHER BUSINESS.