HomeMy WebLinkAboutMIN 06.30.2008 CC-SThe City Council of the City of Georgetown, Texas, met in Special Session on the above date with Mayor
George Garver presiding.
Council Present:
Mayor George Garver, Bill Sattler, Dale Ross,
Keith Brainard, Pat Berryman, Ben Oliver
Council Absent:
Patty Eason, Gabe Sansing
Paul E. Brandenburg, City Manager; Patricia E. Carls, City Attorney; Tom Yantis, Assistant City Manager;
Micki Rundell, Director of Finance and Administration; Randy Morrow, Community Services Director;
Kimberly Garrett, Direct of Parks and Recreation; Marcy Henry; Mark Thomas, Economic Development
Director; Keith Hutchinson, Public Information Officer;
Call to order no earlier than 4:00 p.m.
A Presentation,
discussion, and possible action regarding
the Summit at
the Rivery Park Project -- Paul E.
Brandenburg,
City Manager, Tom Yantis, Assistant City
Manager,
and
Micki
Rundell
Brandenburg explained the item and introduced Dan Clark from LedgeStone Group. Clark updated Council
on the Summit at Rivery Park project. Clark spoke about the vision of the project. He said the 32 acres will
be a key area in establishing the gateway to allow for community development, park improvement, and
other enhancements. He added the project will serve as a stimulus for the economic growth of this region.
He noted the project is a public/private development and he added the investments will be for public
improvements, park enhancements and a regional conference performing arts center. He announced that
the Williamson County Historical Museum will be serving to assist LedgeStone in bringing the local heritage
to this project. He added the Museum will also be housing exhibits at the conference center. He spoke
about the risks to the community and to the taxpayers. He said they have to meet objective performance
criterion before any money goes at risk and he added this is a very fair type of deal. He noted they have to
deliver at proven milestones with proven measure before there can be any money put at risk.
Clark said they are pleased with their PUD and the process went well with City staff. He spoke about the
two zones included in the project and noted a full-service hotel, performing arts center, restaurants and
office space. He added the parking structures will be positioned to facilitate flow throughout the
development. He noted they will be working on park enhancements as well. He said, right now, they are
revisiting their conceptual design. He noted they have new ideas about the conference center and the
problems are mostly cost -related. He said they intend to have feedback sessions with the community. He
said they are working on the financing and investment and added they continue to work on marketing.
Clark spoke about the challenges of the economic environment. He said Central Texas has been saved
some from of the national economic impact, but the national impact does have an affect on a large
development like the Summit. He noted, however, there is a substantial interest in this region. He said the
material costs have increased substantially, especially steel. He noted they are going to be innovative in
trying to reduce the cost of that material while still keeping the flavor of the project. Clark showed Council
the initial proposed rendering and described the various features of the development. He spoke about the
proposed park enhancements and said the project will connect nicely with San Gabriel Park. Clark said the
City Council Meeting Minutes/June 30, 2008
Page 1 of 4 Pages
total development of ewnamic output on the site would be around $152 tualion. He noted that would be the
equivalent of 1,935 full time employees for one year to do the development. He said the total expenditures
over the life of the development is $322 million, which includes all of the ancillary revenues. Clark detailed
the ongoing operations of the development. He said 2,800 estimated permanent jobs and more than $200
million of annual output would be there by the time the project is done. He showed Council an artistic
rendering for the design of the project.
Brandenburg said the City has been working on this project since last June and added that does not include
staff meetings the City has had. He gave Council a timeline of past meetings and reviewed the history of
the project. He went over the structure of the incentive, saying the City and County will allocate 100% of
the tax increment through 2031. He noted the TIRZ will enter into an agreement with the developer to
reimburse eligible costs for up to $25 million. He said the two types of payments are TIRZ debt at $11.5
million and the annual TIRZ payments estimated at $13 million. He noted the TIRZ will contract with the
developer for park maintenance. He said the assumptions in the later financing model are the current tax
rates of the City and County, but noted the tax rates may go up over the life of the TIRZ. He added both the
City and County must each participate at 100%. He added the valuations in the model were based upon
the developer estimates. He listed various improvements that will be debt funded. He said the conference
center itself will be cash funded. He referred Council to the projected cost of improvements and debt
payments shown on their spreadsheet. He told Council the next step is to consider the resolution of intent
which will trigger the process. He said, in two weeks, the developer will be requesting County participation
of 100% of their part of the project. He said, by approving the resolution of intent, the TIRZ Board will be
appointed by the City Council. He listed the various duties of the TIRZ Board. Brandenburg opened the
room to questions.
Oliver said, in the resolution, it talks about a price cap of $25 million. He asked what the $25 million
maximum is applied to. Brandenburg said it would be applied to the project costs they have identified
including park improvements, the park road relocation, the onsite landscaping, and the utility drainage
infrastructure. Oliver said and Brandenburg agreed the $20 million which goes toward the conference
center is included in that amount. Yantis said the amount is 100% of the increment which puts the City at
about $25 million. He added the cap is $25 million so, if the City hits that amount earlier than 2031, the City
will be done with its contributions. McMichael said if the development costs rise, then the bonds will be paid
back faster. She added the length of the TIRZ will then go down.
Sattler referred to Ordinance 2007-91, Exhibit F and said the total on that document comes out to a little
over $40 million. He added there is a lot of discrepancy between that document and Exhibit C of the
document Council is supposed to approve. He asked for help reconciling the numbers between the two
documents. Clark said, unfortunately, the numbers can not be reconciled because the assumptions that
were included in the earlier document would not qualify for the resolution Council is looking to approve. He
noted they had to go back and remodel this new resolution based upon a stand alone conference center
with nothing referring to the adjacent parking structure. He said they took out site improvements that would
not qualify under a TIRZ. He said the discrepancy between the two documents is to clarify that it can only
be for those site improvements. Sattler asked and Clark said the total cost of the project will not be known
until there is a formal bid and they have a completed design. Yantis clarified and said, no matter the cost,
the City is capping its contributions at $25 million. Sattler asked Yantis said, if the County does not approve
this proposal, Council will have to sit back down and decide how they can make this happen.
Brainard asked and Yantis said, in terms of the public/private mixture, the City will own the improvements in
parkland, the public infrastructure, and the road to the park. He said the only thing the City will not own is
the conference center and any of the on site public spaces. Brainard said and Yantis agreed the hotel and
office buildings are all privately owned. Ross asked and Rundell said this project will not have a negative
impact to the City's bond rating. Speaker, Gary Kimble, said nothing is guaranteed, but this is a "best
efforts" financing proposal and the City would only recommend the issuance of TIRZ debt. He added, if the
assessed value is certified by the appraisal district, there will have to be several years of revenue
collections before there will be a marketable bond. He noted, the City will only issue debt if they see that
revenues for the project are at least 150% of the projected debt payments. He added it would have a
substantial built-in financial cushion. Rundell said the City tried to make the estimate as conservative as
possible. Kimble said the City will never issue bonds ahead of growth. Rundell noted they will be issuing
bonds in three sequences in accordance with the buildout. She said they are going to structure the debt so
that everything will be paid off by 2031. Ross asked and Rundell said the City is comfortable with the
numbers.
Sattler asked if the proposed performing arts center and ampitheater come into competition with the
existing performing arts center and the ampitheater being proposed at San Gabriel Park. Clark said the
feedback has been that it would be much to the advantage of the project if there was the ability to have
staging and performing arts at the Summit. He said he has not looked at whether that would compete with
other projects. He said the project is mostly about the conference center and the economic role, but it is
good to have flexibility within that space. Brainard asked about the construction timeline. Clark said, once
they know their entitlements, they will start to go after financing which will take 6-9 months. He said, by
City Council Meeting Minutes/June 30, 2008
Page 2 of 4 Pages
March 2009, the financ...,j package will be completed and construction si..>ald start between on March 1st
but no later than June 30, 2009. He added there will be a three to four year build out depending on what
happens within the zones. He said he sees the hotel and conference center done within a 24 month cycle.
He said they should be done with the hotel, conference center, and most of the office buildings by the end
of 2011.
Brainard asked and Yantis said the City councilmembers can not serve on the TIRZ Board, but the City
designates the majority of the Board members. Yantis added there will be representation from the City, the
County, and the State Legislature. Garver asked and Yantis confirmed the City has three other TIRZ
Boards with Councilmembers. Yantis said this particular TIRZ is set up differently under the statute
because it was a petition by the property owner. Brainard referred to section three of Ordinance 2007-91.
Yantis reviewed the section and said he will have to see whether or not Council members can be included
on the TIRZ Board. Ross asked and Yantis said a traffic impact analysis was done when the Rivery was
initially developed. He said the analysis anticipated types of uses based on zoning categories that were put
in place and added staff feels very confident that the improvements the City has put in will be adequate to
handle the traffic. Ross asked and Clark said, if there is maximum turnout, there would be 3,000 to 4,000
people in that area of which 1,000 of those people will be housed in the adjacent area.
Berryman said and Clark agreed the Summit will probably run out of money before they run out of projects.
Clark said the estimated expenditures will exceed 32 million dollars and that is why they would like to add
revenue generating segments such as the performing arts center and the ampitheater. Berryman said and
Rundell agreed this will not affect our bond rating because the money is going toward public improvements
and parkland. Rundell said they have put a tremendous amount of caution in place and the project will be
very conservatively managed. Berryman said the new performance arts center will not compete with but will
expand the City's ability to service the Arts community. She noted the timing of this project is crucial. She
said the City is in a lull in terms of development right now and added this project would be a huge asset to
the City. Brainard commended both the developer and the staff for working so well together. Clark said
LedgeStone has appreciated working with the City staff. He added there has been good input on this
project and he wants to commend everyone who has helped this project come to light. Mayor asked how
this project will affect the proposed Gateway project. Yantis said this project has brought more interest to
properties in the area and, if this development happens, it will have a stimulating impact on the
redevelopment of the Gateway area. Ross thanked Clark and Brandenburg and said he thinks this is a
great way to do business with the private sector.
Motion by Brainard, second by Oliver to approve the resolution.
Sattler said he would like to see the resolution cleaned up. He referred to section two on page two related
to Zone A, Zone B, and City Property. He said there are duplications in that section. He added the
construction listed on the construction schedule does not match. He said on 2. A. 1., Zone A, concerning
road relocation, that is supposed to be the last part of the construction schedule. He said, referring to 2. A.
3. on the City Property (Rivery Park), section iii (relocation of the Park's public access road), it seems like
the same road will be constructed at two different times. He said he would like to get some clean up on the
resolution as it was proposed so that it matches the schedule that is being proposed in the exhibits. He
noted he would like to see identification for Exhibit A. He added, in one of the documents, the ampitheater
is on the left side and, on the other, it is on the right side. He said he would like to see some consistency.
Yantis referred to the discrepancy concerning the park road construction. He said the park road will move
locations according to projects being built in that area. He added, the construction may not happen in
sequence but, at all times, there will be access to the park. He noted they can clean that up in the contract.
Sattler said, if you look at 2. B. ,C., D., and E., A. occurs last and C. occurs first. Sattler said he just did not
want to cut off access to the park. Yantis said, after both the City and the County approve this project, the
TIRZ Board will enter into a development agreement that will have more specific details. Sattler mentioned,
on Exhibit B, he would like to see Zone A and Zone B marked. He added he would also like to see City
property marked. Mayor asked and Sattler said he would like for the above corrections to be a friendly
amendment to the original motion. Brandenburg asked and Carls said there is still a lot of work ahead of
us. She added this resolution just launches the process and tells the County what the City is doing.
Vote on the motion and friendly amendment: (Approved 5-0) (Sansing, Eason absent)
Mayor said this has to be one of
the most exciting projects
the
City has been allowed to participate in. He
said the Council commends
Dan
Clark
and
his
people
and
he
commends
staff
for their
work.
4:59pm recessed
5:15pm resumed
B Presentation and Training on State Conflict of Interest Laws, City Ethics Ordinance, Local Government
Code Chapter 176 Disclosure Requirements, Open Meetings Act, Public Information Act — Patricia E. Carls,
City Attorney
City Council Meeting Minutes/June 30, 2008
Page 3 of 4 Pages
With a PowerPoint Pre., ntation, Carls presented the Annual Ethics Trait it, ,g. She covered Conflict of
Interest Laws, the City's Ethics Ordinance, the Open Meetings Act, Executive Session, and the Public
Information Act. She noted, pursuant to the City's Ethics Ordinance, the City Attorney must provide this
training to City Council each year.
6:45pm recessed
6:51 pm resumed
Motion by Ross, second by Oliver to adjourn (Approved 4-0) (Sansing, Eason, Brainard absent)
Meeting adjourned at 7:24p.m.
Executive Session
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes,
Annotated, the items listed below will be discussed in closed session and are subject to action in the
regular session that follows.
C Sec.551.071: Consultation with Attorney
- Advice from attorney about pending or contemplated litigation and other matters on which the attorney has a duty to advise
the City Council, including agenda items
- City of Georgetown, Texas v. Georgetown Railroad Company, Inc., et al.; Civil Action No. A08CA 453 SS; In the United
States District Court for the Western District of Texas, Austin Division
- Mark Shelton v. City of Georgetown, et al; Cause No. A07CA063; in the United States District Court for the Western
District of Texas, Austin Division
- Pending, threatened, and contemplated litigation arising from incident in October 2007 involving former police officer Fennell
D Sec 554.071: Personnel Matters
- Deliberation regarding (1) the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public
officer or employee; or (2) to hear a complaint or charge against an officer or employee — City Manager
.,
r
Garver
The meeting was adjourned at 07:24 PM.
City Council Meeting Minutes/June 30, 2008
Page 4 of 4 Pages