[00:00:35]
[CALL TO ORDER]
GOOD EVENING FOLKS.AND WELCOME TO THE FIRST IN-PERSON MEETING OF THE DOWNTOWN COMMISSION IN A YEAR AND A HALF.
IT'S GREAT TO SEE THE FACES THAT ARE HERE.
SOME NEW, SINCE THE LAST TIME WE WERE IN PERSON.
AND, UH, I'M DELIGHTED TO CALL THE MEETING TO ORDER IT IS 5:39 PM.
ON SEPTEMBER 15TH, AMANDA, WOULD YOU BE KIND ENOUGH TO CALL ROLL? YES, CHAIR.
VICE CHAIR, LAYMAN COMMISSIONER MEISENBACH COMMISSIONER CANOPY, COMMISSIONER ROBLEDO COMMISSIONER LICK TECH COMMISSIONER SHARE COMMISSIONER HAIM SET, RESIDENT COMMISSIONER KEATON, COMMISSIONER GOMEZ, COMMISSIONER RAMIREZ HERE.
COMMISSIONER, WHETHER BE COMMISSIONER TAYLOR, COMMISSIONER LEVINE, COMMISSIONER REIGN, COMMISSIONER TEMPLETON HERE, COMMISSIONER LUMON AND COMMISSIONER ROBINSON.
UH, COMMISSIONER KEATON IS SHOWING UP ON THE SCREEN IS REMOTE.
UM, THE NEXT ITEM IS, UH, CITIZEN COMMUNICATION.
DO WE HAVE ANYBODY PRESENT FOR CITIZEN COMMUNICATION? THERE ARE NO CITIZENS SIGNED UP TO SPEAK TONIGHT CHAIR.
AND AS I REMEMBER THE RULES THAT CAME FROM THE CLERK'S OFFICE, ANYBODY THAT WANTS TO PRESENT AT THE COMMISSION MUST DO SO LIVE OR CAN THEY DO IT ONLINE AS WELL? UM, IT WAS THE LAST WORD RECEIVED FROM THE CITY CLERK'S OFFICE IS LIVE.
SO GOOD TO KNOW, UM, FOR ANYBODY WATCHING, IF YOU WANT TO COME DOWN AND ADDRESS THE COMMISSION, OR YOU WANT TO ADDRESS THE DOWNTOWN COMMISSION IN THE FUTURE, PLEASE MAKE SURE THAT YOU COME DOWN TO CITY HALL.
[1. Approval of Minutes of the August 18, 2021 Meeting Minutes]
THE, UH, NEXT ITEM IS THE APPROVAL OF THE MINUTES FROM THE AUGUST 18TH, 2021 MEETING.UH, HAS EVERYBODY HAD A CHANCE TO REVIEW THE MINUTES? IS, DO I HAVE A MOTION TO APPROVE THE MINUTES? COMMISSIONER? MEISENBACH DO I HAVE A SECOND? OKAY.
WE HAVE A MOTION TO SECOND, ANY FURTHER DISCUSSION HEARING? NONE.
[2.a. Downtown Density Affordable Housing Program: Presentation by Sam Tedford, Housing and Planning Department]
BUSINESS.UH, THE FIRST ITEM OF BUSINESS TONIGHT IS THE DOWNTOWN DENSITY AFFORDABLE HOUSING PROGRAM.
WE HAVE SAM TEDFORD WITH HOUSING AND PLANNING DEPARTMENT.
AND DOES, UH, CITY HALL HAVE MY SLIDE DECK OR SHOULD I TRY AND PRESENT, UH, SAM, WE DO HAVE YOUR PRESENTATION.
WOULD YOU PREFER TO PRESENT THAT WAY? OTHER WAY WORSE FOR ME, I, AT THIS POINT, DON'T HAVE THE PERMISSION TO SHARE CONTENT ON WEBEX, BUT CAN I CAN PUT IT IN PRESENTER MODE FOR YOU OR I CAN DO NEXT SLIDE, WHICHEVER YOUR PREFERENCE IS.
IF YOU HAVE IT PULLED UP, I CAN, I CAN JUST, UH, GIVE YOU DIRECTION ON NEXT SLIDE OR NOT.
ARE YOU ALL ABLE TO SEE THE SLIDES ON YOUR SIDE? YES.
THANK YOU SO MUCH COMMISSIONERS AND GOOD EVENING.
I'M A PRINCIPAL PLANNER IN THE HOUSING AND PLANNING DEPARTMENT IN THE NEWLY FORMED INCLUSIVE PLANNING DIVISION.
AND I AM HERE TO PROVIDE A BRIEFING ON A RECENT RESOLUTION REGARDING THE DOWNTOWN DENSITY BONUS PROGRAM.
[00:05:01]
AND AS YOU KNOW, THAT PROGRAM WAS ORIGINALLY PASSED IN THE YEAR 2014.AND NEXT SLIDE, PLEASE TONIGHT, I'LL BE JUST DISCUSSING A COUPLE OF THE OTHER PARTS OF THE RESOLUTION, UH, PASS BACK IN APRIL 22ND.
UH, I'LL DISCUSS SOME OF OUR DRAFT FEES THAT ARE ON THE TABLE.
UH, I'LL DISCUSS A LITTLE BIT OF WHAT GOES INTO THE FEE CALIBRATION, AND THEN THERE'S A FEW DISCUSSION ITEMS, UM, ABOUT THE DOWNTOWN GOOD STEEP BONUS PROGRAM AND OUR GOALS WITH THIS PROGRAM AND THEN SOME OF OUR NEXT STEPS.
I BELIEVE IN YOUR LAST MEETING YOU HEARD FROM MY COLLEAGUE
UM, AND I WILL NOT BE SPEAKING TO THAT PIECE TODAY.
I WILL BE SPEAKING THOUGH TO THESE NEXT TWO PIECES, WHICH WERE REGARDING INTERIM REVISIONS TO THE, IN LIEU AFFORDABLE HOUSING FEES FOR THE DOWNTOWN DENSITY BONUS PROGRAM, AND THEN THE RECALIBRATION OF THOSE FEES.
SO THE FIRST PIECE OF THIS RESOLUTION THAT I'M SPEAKING TO, UH, TOLD US THERE IT IS.
TOLD US TO DO A COUPLE OF THINGS.
IT TOLD US TO PASS INTERIM REVISIONS TO THE, IN LIEU OF AFFORDABLE HOUSING FEES, UH, FOR BOTH RESIDENTIAL AND NON-RESIDENTIAL DEVELOPMENT IN THE DOWNTOWN DENSITY BONUS PROGRAM.
AND ALSO TO MOVE THOSE FEES INTO THE CITY'S FEE SCHEDULE SO THAT THEY CAN BE UPDATED MORE EFFECTIVELY.
THIS PIECE OF THE RESOLUTION IS COMPLETE.
UM, AND IF YOU'LL GO TO THE NEXT SLIDE, THIS PIECE OF THE RESOLUTION WAS COMPLETED WITH AN ORDINANCE I DIDN'T LIST ON HERE, BUT IT PASSED BACK IN MAY OF THIS YEAR WHERE WE ASKED THESE INTERIM FEES THAT WERE BASED ON PREVIOUS WORK BY AN ECONOMIC CONSULTANT TEAM CALLED ECO NORTHWEST.
THAT, UM, WAS PART OF THE WORK OF THE LAND DEVELOPMENT CODE REVISION AT THE TIME.
AND SO THESE FEES WERE ACKNOWLEDGED TO BE INTERIM BECAUSE THEY WERE BASED ON A SLIGHTLY DIFFERENT SET OF PARAMETERS THAN OUR CURRENT CODE TODAY.
THEY WERE ALSO PASSED USING OUR PAST, EVEN THOUGH THEY WERE BASED ON KIND OF MARKET DYNAMICS FROM LATE 2019, AND A LOT, A LOT HAS HAPPENED SINCE 2019.
UM, AND THEY HAD A FEW KEY DIFFERENCES IN HOW WE WOULD GO ABOUT DOING THAT CALIBRATION BASED ON TODAY'S CODE AS WELL.
UM, BUT THOSE FEES WERE PASSED BACK IN MAY.
AND NOW I'M GOING TO SPEAK TO THE NEXT SLIDE, WHICH ASKS US TO ALSO UPDATE THAT THEME LOOM ANALYSIS, UH, THAT WAS ORIGINALLY DONE, BUT YOU GO NORTHWEST AND, UH, REFLECT CURRENT MARKET CONDITIONS IN THE EXISTING ZONES OF THE LAND DEVELOPMENT CODE.
WE ARE A BIT PAST THAT ORIGINAL DATE, BUT WE ARE ON TRACK TO PRESENT THE STAFF RECOMMENDATION FOR THESE FEES TO COUNCIL ON SEPTEMBER 30TH.
SO THOSE CALIBRATED FEES RIGHT HERE, I'M SHOWING THE INTERIM FEES AGAIN, AND I AM JUST GOING TO GIVE YOU SOME INDICATION OF DIRECTIONALITY OF WHAT OUR RECALIBRATION WORK HAS TOLD US IN REGARDS TO THESE FEES.
BEFORE I DIVE INTO WHAT CALIBRATION OF IN LIEU FEES MEANS FOR DOWNTOWN, UM, WE KNOW QUITE A FEW THINGS HAVE CHANGED SINCE 2019 AND THAT WAS WHAT THOSE INTERIM FEES WERE BASED ON.
UM, WE HAVE SEEN INCREASED CONSTRUCTION COSTS DUE TO A VARIETY OF FACTORS AND LARGE SCALE EVENTS THAT HAVE IMPACTED TEXAS AND OUR LOCAL MARKET.
UM, WE'VE ALSO SEEN INCREASED CONDO SALES PRICES.
UM, IT IS PROBABLY NO SHOCK TO ANYONE THAT HOUSING PRICES HAVE GONE UP EVERYWHERE IN THE CITY SINCE 2019, BUT THAT HOLDS TRUE TO THE DOWNTOWN NEIGHBORHOOD AS WELL.
UM, THOSE INLAND FEES ARE THE INTERIM FEES THAT WERE PASSED WERE ALSO BASED ON A FEW PROPOSED, UM, CODE CHANGES THAT WERE ROLLED UP INTO THE LAND DEVELOPMENT CODE REVISION.
ONE OF THEM WAS THE PROPOSAL TO INCLUDE A PARKING MAXIMUM DOWNTOWN.
AND, UH, WE HEARD FEEDBACK AT THAT TIME FROM STAKEHOLDERS THAT IF WE IMPOSE A PARKING MAXIMUM THAT WAS LOWER THAN PARKING DEMAND TODAY, THEN WE WOULD NEED TO REDUCE THE PROJECTED SALES PRICES THAT GO INTO OUR MODELING.
AND SO THOSE INTERIM FEES REFLECT AN ARTIFICIAL CAP ON SALES PRICES THAT DOES NOT EXIST IF THERE IS NOT, UM, A PARKING MAXIMUM DOWNTOWN TODAY, WHICH, UH, DOES NOT EXIST IN OUR CURRENT CODE.
SO FOR ALL OF THOSE REASONS, WHEN WE LOOKED AT CALIBRATING THESE FEES TO CURRENT MARKET CONDITIONS, WE SAW THAT RESIDENTIAL DEVELOPED THE FEES FOR RESIDENTIAL DEVELOPMENT COULD BE QUITE A BIT HIGHER THAN THE INTERIM FEES TOLD US.
[00:10:01]
BUT WHEN WE TRANSITIONED TO LOOKING AT THE COMMERCIAL MARKET DOWNTOWN, WE'VE SEEN A DECREASE IN THE PAST COUPLE OF YEARS, UM, IN MO MARKET OFFICE RENTS.UH, AND AT THE SAME TIME, WE'VE SEEN AN INCREASE IN OPERATING COSTS, BOTH FROM, UH, CONTINUE RISING A PROPERTY TAXES, BUT ALSO TO CERTAIN SITE CONDITIONS, UH, DUE TO THE PANDEMIC THAT HAVE INCREASED OPERATING COSTS DOWNTOWN.
AND FOR THOSE REASONS WE DON'T BELIEVE AT THIS TIME THAT THE INTERIM FEES THAT WERE PASSED FOR NON RESIDENTIAL OR COMMERCIAL DEVELOPMENT ARE SUPPORTED BY CURRENT COMMERCIAL MARKET CONDITIONS TODAY, NEXT SLIDE.
AND SO, UNFORTUNATELY WE ARE STILL IN THE MIDDLE OF FINALIZING THESE FEES.
UM, OUR CITY MANAGER'S OFFICE IS REVIEWING THEM AND WE HOPE TO HAVE OUR FINALIZED STAFF RECOMMENDATION BY THE END OF THIS WEEK, IT WILL BE PROVIDED AS BACKUP FOR THE COUNCIL AGENDA ITEM POSTED FOR SEPTEMBER 30TH, AS I MENTIONED BEFORE.
UM, AND SO AT THIS POINT I CAN SAY THAT, YOU KNOW, AS I PREVIOUSLY INDICATED, WE THINK RESIDENTIAL FEES WILL BE GOING UP BASED ON WHAT THE, OR, UM, YEAH, BASED ON THE INTERIM FEES, BUT WE THINK COMMERCIAL FEES WILL BE GOING DOWN, UM, BASED ON THE CURRENT MARKET CONDITIONS.
UM, WE HAVE THROUGH THE PROCESS OF CALIBRATION MET WITH SOME KEY STAKEHOLDERS IN THIS AREA, WHICH ARE OUR DOWNTOWN AUSTIN ALLIANCE AND THE REAL ESTATE COUNCIL OF AUSTIN WE'VE INCORPORATED THEIR FEEDBACK.
WE HAVE, UM, THEY HAVE BEEN VALUABLE PARTNERS FOR US AND UNDERSTANDING THE MARKET CONDITIONS IN DOWNTOWN TODAY AND THE TYPES OF THINGS THAT ARE IMPACTING CONSTRUCTION IN DOWNTOWN.
AND AT THE SAME TIME, UH, WE ARE GOING TO BE RECOMMENDING A STAFF THAT WE REVISIT THESE FEES AGAIN, NEXT FISCAL YEAR DUE TO JUST HOW MUCH UNCERTAINTY THERE IS IN THE COMMERCIAL MARKET TODAY.
UM, I'VE HEARD FROM MANY FOLKS WHO WORK IN OFFICE DEVELOPMENT TYPICALLY IN THE DOWNTOWN AREA, BUT THERE'S KIND OF A HOLDING PATTERN RIGHT NOW WHERE FOLKS ARE TRYING TO UNDERSTAND THE FUTURE DEMAND FOR OFFICE SPACE DOWNTOWN AND IN THIS PERIOD WHERE WE'RE TRYING TO SEE HOW, YOU KNOW, THE RISE OF REMOTE WORK PLAYS OUT.
THERE'S A LOT OF UNCERTAINTY IN THE POTENTIAL DEMAND OF OFFICE SPACE DOWNTOWN.
AND SO FOR THAT REASON, WE THINK IT'S IMPORTANT TO CHECK IN ON THESE FEES, UM, PRETTY REGULARLY UNTIL THERE'S A BIT MORE OF A CLEAR PATH OR TRAJECTORY FOR OFFICE, UH, DEMAND DOWNTOWN.
UM, SO WE INTEND TO PASS A FEE THIS YEAR THAT WILL BE LOWER THAN THAT INTERIM FEE FROM BACK IN MAY.
UM, BUT WE WILL REASSESS IN ABOUT A YEAR'S TIME IS OUR GOAL.
I'LL JUST BE SPEAKING A BIT ABOUT WHAT IT MEANS WHEN WE CALIBRATE THESE FEES.
THESE ARE NOT FEES THAT, UM, LOOK LIKE A LOT OF OTHER FEES THAT THE CITY OF AUSTIN, UM, APPROVES AND THAT'S BECAUSE THEY'RE ASSOCIATED WITH A DENSITY BONUS PROGRAM.
AND SO I CAN SPEAK A LITTLE BIT TO WHAT WE HAVE TO CONSIDER WHEN WE'RE TUNING OR CALIBRATING A DENSITY BONUS PROGRAM.
SO BEFORE I GET INTO SORT OF WHAT IT MEANS TO HAVE A DENSITY BONUS PROGRAM, I JUST WANTED TO SHOW THIS DIAGRAM TO BROADLY HIGHLIGHT THE VARIETY OF THINGS THAT HAVE TO COME TOGETHER AND BE IN ALIGNMENT BEFORE DEVELOPMENT CAN OCCUR.
SO THERE HAS TO BE VIABLE SITES FOR LAND.
THERE HAS TO BE A CAPITAL AND THAT HAS TO BE ATTRACTED, UM, WITH RETURNS ON THOSE CAPITAL INVESTMENTS.
THE MARKET FEASIBILITY HAS TO BE THERE.
UM, YOU HAVE TO SEE RENTS OR SALES PRICES THAT WILL COVER YOUR OPERATING AND CONSTRUCTION COSTS.
AND THEN THE PIECE THAT WE AS THE CITY OF BOSTON AND HE WAS A COMMISSION AND THE CITY COUNCIL WEIGH IN ON IS THE PUBLIC POLICY THAT CAN INFLUENCE ALL OF THESE FACTORS.
UM, BUT I SHOW THIS BECAUSE IT'S IMPORTANT TO NOTE THAT OUR POLICY CANNOT CHANGE THE FEASIBILITY OF DEVELOPMENT.
IF THESE OTHER THREE PIECES ARE NOT IN ALIGNMENT AND ARE NOT, UM, ARE NOT HAPPENING.
AND SO FOR THAT REASON, WE CANNOT CONTROL THE FULL REALM OF WHEN A DEVELOPMENT OCCURS, WHERE IT DOES NOT OCCUR.
AND A BIT OF A REFRESHER, IF YOU'RE UNFAMILIAR, WHY IN AUSTIN, WE UTILIZE DENSITY BONUS PROGRAM.
SO MUCH PART OF IT IS DEFINITELY BECAUSE IN TEXAS, OUR LAWS PREVENT MOST TYPES OF INCLUSIONARY ZONING THAT IS, WILL WE MANDATE OR REQUIRE THE INCLUSION OF BELOW MARKET RATE OR INCOME RESTRICTED OR RENT RESTRICTED HOUSING.
UM, HOWEVER, WE DO HAVE THE ABILITY TO USE AN INCENTIVE-BASED PROGRAM TO CREATE AFFORDABLE HOUSING WITHOUT DIRECT PUBLIC SUBSIDIES.
AND THAT IS WHAT WE USE THESE DENSITY BONUS PROGRAMS FOR.
UM, AND SO BY DEFINITION, THE DOWNTOWN DENSITY BONUS PROGRAM IS A VOLUNTARY PROGRAM.
WE CANNOT REQUIRE PARTICIPATION IN THE DOWNTOWN DENSITY BONUS
[00:15:01]
PROGRAM.UM, AND WE REQUIRE, WE RELY ON AN INCENTIVE BASED APPROACH TO HAVE THE PRIVATE MARKET DELIVER COMMUNITY BENEFITS FOR US.
AND IF YOU'RE FAMILIAR WITH THE DOWNTOWN DENSE PEOPLE IN HIS PROGRAM ORDINANCE, THERE IS AN ARRAY OF COMMUNITY BENEFITS THAT WERE ASKING DEVELOPMENTS TO PROVIDE DOWNTOWN THAT EXTEND BEYOND JUST AFFORDABLE HOUSING, BUT I'LL BE SPEAKING MOSTLY TO THE AFFORDABLE HOUSING PIECE.
AND SO IN ORDER TO UNDERSTAND WHAT WOULD BE CONSIDERED AN INCENTIVE TO PARTICIPATING IN THIS PROGRAM, WE HAVE TO EMPLOY SOME OF THE SAME FINANCIAL CONSIDERATIONS, A REAL ESTATE DEVELOPER WOULD USE TO EVALUATE THE VALUE OF BONUS ENTITLEMENTS COMPARED TO BASE ENTITLEMENTS, BECAUSE WE KNOW IF THERE'S NO INCENTIVE TO PARTICIPATE IN A BONUS PROGRAM, THAT MEANS THERE ARE NO BONUS UNITS MARKET RATE OR AFFORDABLE.
AND NONE OF THE OTHER COMMUNITY BENEFITS THAT ARE TIED UP WITH THIS BONUS PROGRAM WOULD ALSO BE PROVIDED.
AND SO THAT IS WHY WE TAKE SOME VERY CAREFUL CALIBRATION WORK, UM, IN ORDER TO MAXIMIZE THE PUBLIC BENEFITS AND ACHIEVE OUR POLICY GOALS.
UM, WE HAVE TO ENSURE THAT THERE IS A DEVELOPMENT BENEFIT ON THE TABLE.
OTHERWISE WE WON'T RECEIVE THOSE PUBLIC BENEFITS THAT ARE PART OF THE PROGRAMS, UM, GUIDELINES AS WELL.
SO THIS IS JUST A VERY HIGH LEVEL CONCEPTUAL, UH, WAY TO TALK ABOUT, UM, WHAT THE CALIBRATION OF DENSITY BONUS PROGRAMS ENTAILS.
WE NEED TO HAVE A WAY OF UNDERSTANDING THE VALUE OF BUILDING TWO BASE ENTITLEMENTS, UM, BECAUSE THAT IS BY RIGHT.
THOSE ARE BY RIGHT ENTITLEMENTS.
THIS IS WHAT A DEVELOPMENT COULD BUILD WITH OR WITHOUT OUR APPROVAL, UM, W IN TERMS OF THE BONUS ENTITLEMENTS.
UM, AND THEN WE HAVE TO UNDERSTAND THE VALUE OF BUILDING TO BONUS ENTITLEMENTS.
YES, WE KNOW THAT, YOU KNOW, AS YOU GET ADDITIONAL HEIGHT OR FIR OR DENSITY, UM, THERE'S POTENTIALLY ADDITIONAL BONUS VALUE FROM INCOME, BUT THERE'S ALSO ADDITIONAL RISK IN BUILDING BIGGER.
THERE IS ALSO INCREASED CONSTRUCTION COSTS WHEN YOU BUILD BIGGER.
SO WE NEED TO BE ABLE TO EVALUATE THAT VALUE OVERALL FOR WHAT OUR BONUS ENTITLEMENTS PROVIDE.
AND THEN WE TAKE A PORTION OF THAT ADDED VALUE OF OUR BONUS AND DIRECT IT TOWARDS A PUBLIC BENEFIT.
IN THIS CASE, WE'RE TALKING ABOUT, UM, AFFORDABILITY, AFFORDABLE HOUSING OR AN IN LIEU FEE.
WE KNOW THAT, UH, OH, AND WE HAVE TO LEAVE A PIECE THAT IS WHY WE ONLY TAKE A PORTION OF THE BONUS VALUE AND DIRECTED TOWARDS PUBLIC BENEFIT.
BECAUSE LIKE I MENTIONED EARLIER, IF THERE IS NOT AN INCENTIVE TO BUILD BIGGER, UM, WE CANNOT GUARANTEE THAT WE WILL GET THOSE PUBLIC BENEFITS, UM, AND PARTICIPATION IN THE BONUS PROGRAM.
AND SO WE KNOW THAT IF WE SET OUR REQUIREMENTS TOO HIGH, IF THE PUBLIC BENEFIT COSTS TOO MUCH TO PROVIDE THEM, WE'RE ACTUALLY NOT PROVIDING AN INCENTIVE.
THERE'S A DISINCENTIVE FOR A DEVELOPER TO BUILD IN THE BONUS ENTITLEMENTS AND UTILIZE OUR BONUS PROGRAM.
AND SO WE DON'T GET ADDITIONAL MARKET RATE OR AFFORDABLE UNITS.
WE DON'T GET THINGS LIKE OUR GATEKEEPER REQUIREMENTS AND THE DOWNTOWN AND SPEED BONUS PROGRAM, OR ANY OTHER, ANY OF THE OTHER NUMEROUS COMMUNITY BENEFITS LISTED IN THE DOWN TENDENCY BONUS PROGRAM ORDINANCE.
AND SO THAT IS OUR GOAL AS STAFF.
UM, WHEN WE ARE LOOKING AT CALIBRATING THESE, UH, FEES, WE ARE HOPING TO MAXIMIZE THE COMMUNITY BENEFIT.
AND WHEN WE TALK ABOUT A FEE IN LIEU OF ONSITE AFFORDABLE HOUSING, UM, BY CODE THOSE FEES IN LIEU ARE SPECIFICALLY DIRECTED TOWARDS LOW BARRIER APPROACHES TO HOUSING PEOPLE WHO ARE CHRONICALLY HOMELESS, WHICH HAS BEEN INTERPRETED FOR THE MOST PART BY CITY, BY THE CITY TO MEAN HOUSING VOUCHERS FOR FOLKS WHO'VE EXPERIENCED HOMELESSNESS.
SO IT IS GETTING FOLKS WHO HAVE BEEN HOMELESS INTO HOUSING IS WHAT THESE FEES GO TOWARDS.
THERE ARE STILL ONSITE AFFORDABLE HOUSING REQUIREMENTS, UM, IN, IN THE DOWNTOWN, UM, DENSITY BONUS PROGRAM, THE RAINY STREET DENSITY BONUS, UH, THE RAINEY STREET DISTRICT HAS AN ONSITE REQUIREMENT IN ADDITION TO THE ABILITY TO PAY FEES AND LU.
UH, BUT WE ALSO SEE SOME DEVELOPMENTS IN, IN OTHER DISTRICTS OF DOWNTOWN, EXCLUSIVELY PROVIDING FEES IN LIEU OF AFFORDABLE HOUSING.
UM, SOMETIMES THAT'S BECAUSE IT'S A COMMERCIAL OR A NON-RESIDENTIAL PROJECT.
AND SO IF THERE'S NOT HOUSING ON SITE, THEN THEY NEED AN OPTION TO BE ABLE TO PAY FOR THEIR REQUIREMENT, UM, AS A FEE.
AND SOMETIMES WE ALSO SEE HOUSING PROJECTS THAT, UM, STILL ELECT TO PROVIDE FEES IN LIEU OF AFFORDABLE HOUSING INSTEAD OF PROVIDING THE AFFORDABLE HOUSING COMMUNITY BENEFIT ON SITE AND IN THE DOWNTOWN DENSITY BONUS PROGRAM.
IT'S MY UNDERSTANDING THAT THAT HAS BEEN THE PREFERRED ROUTE THAT A LOT OF DEVELOPERS DOWNTOWN GO, UM,
[00:20:01]
THAT IS NOT HOW ALL OF OUR DENSITY BONUS PROGRAMS WORK.THERE ARE IN OTHER AREAS OF REQUIREMENT OR A STRONG PREFERENCE TO PROVIDE THOSE UNITS ONSITE.
UM, BUT THAT HAS NOT BEEN THE PREFERENCE IN DOWNTOWN HAS BEEN FAIRLY OPEN, UM, TO EITHER FEASIBLY OR ONSITE.
UM, WE ALSO KNOW THAT WE'D LIKE TO KEEP FLEXIBILITY AND RESILIENCE IN THIS PROGRAM TO ACCOUNT FOR FLUCTUATIONS IN THE MARKET.
UNFORTUNATELY, IN THE PAST TWO YEARS HAVE BEEN VERY BUMPY AND FULL OF A LOT OF UNCERTAINTY AND CHANGES TO OUR, UM, NOT JUST DOWNTOWN, BUT OUR, YOU KNOW, HOUSING MARKET AND OUR COMMERCIAL MARKET.
AND SO FOR THESE REASONS, WE NEED TO MAKE SURE THAT OUR PROGRAM HAS SOME FLEXIBILITY SO THAT, UM, IT CAN STILL SUCCEED AND PROVIDE BONUS AFFORDABLE HOUSING OR MARKET RATE UNITS, EVEN IN THE EVENT OF PRETTY RAPIDLY EVOLVING DEVELOPMENT CONDITIONS.
UM, BUT THAT'S ALSO A REASON WHY STAFF IS ADVOCATING FOR MORE FREQUENT RECALIBRATION, AT LEAST IN THE NEAR TERM.
UM, BEFORE THIS YEAR, THE LAST TIME THESE FEES HAD BEEN EVALUATED WAS 2014 WHEN THE DOWNTOWN WICKI BONUS PROGRAM ORDINANCE WAS INITIALLY PASSED.
AND SO WE THINK MUCH MORE FREQUENT THAN THE SEVEN TO 10 YEARS, BUT IT REALLY HAS BEEN, UM, BUT, UH, YOU KNOW, GOING FORWARD, WE THINK ANNUALLY FOR NOW, WE ALSO KNOW THAT IN REALLY SHIFTING THESE FEES, UM, CAN BE PRETTY TRICKY TO PLAN AROUND WHEN THEY CAN, UM, SEE SOME MAJORS, UH, SHIFTS OVER TIME.
SO WE ALSO WANT TO PROVIDE PREDICTABILITY FOR PROJECTS TO PLAN AROUND WITH THESE FEES, UM, AND STILL MAKE SURE THAT WE'RE NOT DISINCENTIVIZING DEVELOPMENT BY, UH, KEEPING OUR COMMUNITY BENEFIT REQUIREMENTS TOO HIGH, OR ACTUALLY MORE, UM, THEY'RE ASKING MORE OF A DEVELOPMENT THAN WHAT THE ACTUAL BONUS ENTITLEMENT VALUE IS.
AND SO THOSE ARE THINGS THAT WE ARE CONSIDERING.
SO OUR NEXT STEPS ARE WE WILL BE ALSO PRESENTING TO THE DESIGN COMMISSION AT THE END OF THIS MONTH.
UM, AS I MENTIONED BEFORE, WE ARE UNFORTUNATELY NOT QUITE FINALIZED ON OUR STAFF RECOMMENDATION.
IT SHOULD BE FINALIZED THIS WEEK.
AND SO, UM, THE FINAL STAFF RECOMMENDATION WILL BE SHARED BY FRIDAY, SEPTEMBER 17TH DESIGN COMMISSION.
AND WE ARE ON THE COUNCIL AGENDA FOR ACTION ON SEPTEMBER 30TH.
UH, IF YOU HAVE QUESTIONS IN THE NEAR TERM, UM, ERICA WEEK OR MYSELF, UH, IN HOUSING AND PLANNING DEPARTMENT ARE AVAILABLE TO ANSWER QUESTIONS, AND YOU CAN ALSO LEARN MORE ABOUT, UM, THE CALIBRATION MODEL THAT WE'VE BEEN USING AND THE WORK OF THE ECONOMIC CONSULTANTS, ECO NORTHWEST, UM, BY VISITING THE DEVELOPMENT INCENTIVES PAGE ON THE CITY OF BOSTON WEBSITE.
AND WITH THAT, I WILL CONCLUDE MY PRESENTATION.
UH, COMMISSIONERS QUESTIONS, COMMISSIONER LEVINE, THANKS FOR THAT PRESENTATION.
UM, Y OH, YOUR QUESTION IS JUST, WELL, FIRST OF ALL, LET ME CLAUDE THAT.
UM, MY QUESTION IS WHAT CAN WE DO TO ADDRESS THE ISSUE YOU PRESENTED ABOUT PEOPLE BEING LU LU IN LIEU OF DOWNTOWN? WHAT CAN WE DO TO ENCOURAGE THAT YOU MAKE THEM BE A LOOSE? SO IT'S LOOKING AT THE BETTER DEAL DOWNTOWN.
UM, SHOULD I START OVER? OKAY.
THANK YOU FOR THE PRESENTATION.
UM, AND, UH, I REALLY APPRECIATE THAT Y'ALL ARE GONNA READDRESS THIS IN A YEAR BECAUSE OF THE VOLATILITY AND EVERYTHING.
UM, MY QUESTION IS REGARDING WHAT YOU HAD MENTIONED ABOUT DEVELOPERS OPTING MOSTLY FOR FEE AND LU AS OPPOSED TO BUILDING AFFORDABLE HOUSING DOWNTOWN.
I THINK WE ALL AGREE THAT WE NEED MORE AFFORDABLE HOUSING DOWNTOWN, AND I'M WONDERING WHAT WE CAN DO TO MAKE THE FEE IN LIEU LESS ATTRACTIVE AND ENCOURAGE MORE OF THAT BUILDING DOWNTOWN.
I APPRECIATE THE NEED FOR THE HOUSING VOUCHERS.
I APPRECIATE THE NEED FOR THAT FUND TO GROW, BUT I THINK THERE'S PLENTY OF OTHER WAYS TO DO THAT PROBABLY.
AND WE COULD, UM, ACTUAL HOUSING DOWNTOWN.
SO I'M WONDERING WHERE Y'ALL'S HEAD IS IN TERMS OF TRYING TO TACKLE THAT ISSUE IN THE FUTURE.
I DIDN'T CATCH WHICH COMMISSIONER WAS SPEAKING,
[00:25:02]
MIKE LIVING MY PLUMBING.AND THANK YOU FOR YOUR QUESTION.
UM, LIKE I SAID, THERE ARE OTHER DEBTS BE BONUS PROGRAMS IN THE CITY WHERE WE DO FURTHER EMPHASIZE THE DESIRE TO HAVE ONSITE AFFORDABLE HOUSING, UM, THAT HAS NOT BEEN DIRECTION THAT WE'VE REALLY BEEN PROVIDED FOR THIS PARTICULAR PROGRAM.
BUT IF WE WERE TO MOVE IN THAT DIRECTION, THERE ARE A COUPLE OF WAYS THAT WE DO THAT IN OTHER PROGRAMS. AND SO I KIND OF HAVE THAT CHART THAT SHOWED, UM, YOU KNOW, THE ADDED VALUE OF A BONUS, AND THEN WE'RE TAKING A PERCENTAGE OF IT AND DIRECTING IT TOWARDS OUR, WHATEVER THE COMMUNITY BENEFIT IS.
AND WE'RE LEAVING A PERCENTAGE OF IT ON THE TABLES FOR THE DEVELOPER AS AN INCENTIVE.
AND SO IN DOWNTOWN, WE'RE TAKING 50% OF THAT VALUE OF THE BONUS, THE UPSIDE OF THE BONUS ENTITLEMENTS AND DIRECTING THAT TOWARDS, UM, A FEE OR ON-SITE PROVISION OF AFFORDABLE HOUSING.
UM, WHEN WE TYPICALLY WANT TO INCENTIVIZE ONSITE, WE CAN MOVE THAT TO 75% OF THE ADDED VALUE OF THE BONUS GOES TOWARDS A FEE.
AND YET WE KEEP SOMETHING LIKE 50% FOR ONSITE AFFORDABLE HOUSING.
AND SO THAT'S WHERE WE COULD SEE LIKE KIND OF PUSHING A LITTLE BIT HARDER TO GET, UM, ON-SITE AFFORDABLE HOUSING.
SO THAT IS ONE DIRECTION THAT, UM, WE COULD GO.
UM, IF WE HAD DIRECTION I SUPPOSE, AROUND THAT, UM, OTHERWISE IT'S ALSO HARD DOWNTOWN TO PROVIDE ONSITE AFFORDABLE HOUSING WE'VE SEEN IN DEVELOPMENTS LIKE FOR SALE CONDO DEVELOPMENTS DOWNTOWN, THAT WE CAN INCOME RESTRICT THE FOR SALE PRICE LIKE WE WOULD DO, UM, IN OTHER DENSITY BONUS PROGRAMS, BUT THE HOMEOWNERS ASSOCIATION FEES ARE SO LARGE AND OUTSIDE THE CITY'S ABILITY TO CONTROL OR IMPACT THAT IT COMPLETELY EXCEEDS THAT THE HOUSING, UM, BUDGET THAT WE ALLOW FOR A HOUSEHOLD THAT HAS A PARTICULAR INCOME.
AND SO, UM, YOU KNOW, IF WE'RE SAYING THAT A HOUSING OR A HOUSEHOLD THAT IS MAKING 80% OF THE MEDIAN FAMILY INCOME IS SUPPOSED TO BE ABLE TO PAY THIS MUCH, TO BUY THIS TYPE OF HOUSING UNIT, WE SET THAT, AND THEN THE HOMEOWNERS ASSOCIATION MONTHLY FEE MAKES IT COMPLETELY UNAFFORDABLE FOR THAT FAMILY TO STILL LIVE IN THAT UNIT.
AND SO FOR THAT REASON, UM, WE HAVE KEPT THE IN LIEU FEE AS, UH, YOU KNOW, WE ARE NEUTRAL ON THE PROVISION OF ONSITE OR IN LIEU FEES, UM, FOR DOWNTOWN BECAUSE OF THOSE TYPES OF NUANCES THAT, THAT ARE MOST PREVALENT DOWNTOWN, BUT NOT IN SOME OF OUR OTHER PROGRAMS. THANK YOU.
OTHER QUESTIONS FROM COMMISSIONERS? YEAH.
MR. GOMEZ, ALONG THE SAME LINES.
THIS IS, UH, COMMISSIONER GOMEZ, UH, EQUITY.
I JUST WANT TO MAKE SURE MIKES ARE ON, WE'VE GOT THEM ON.
SO, SO, YOU KNOW, EQUITY IS A BIG DEAL NOWADAYS, AND I'M JUST TRYING TO FIGURE OUT I'M WORKING WITH A LOT OF PEOPLE WHO DON'T MAKE A LOT OF MONEY, UM, THAT STILL WORKED DOWNTOWN, THE BUSBOYS, THE WAITRESSES, THE MAIDS, AND EVERYBODY ELSE THAT HAVE TO COMMUTE AND CAUSE TRAFFIC AND OTHER OTHER STUFF.
UH, I'M JUST WONDERING, KNOWING THAT THE HOMEOWNERS ASSOCIATION FEES DO WHAT THEY DO, WHAT ARE Y'ALL DOING TO ENSURE THAT THERE'S EQUITY IN THE POPULATION THAT CAN LIVE DOWNTOWN.
AND IT ABSOLUTELY SPEAKS TO SOME OF THE LIMITATIONS OF THE TOOLS THAT WE HAVE A DEVELOPER INCENTIVE PROGRAMS SUCH AS THIS IS VERY MUCH LIMITED.
UM, IT WILL ONLY WORK WHEN MARKET, UM, MARKET RATE DEVELOPERS BUILD IN THE BONUS ENTITLEMENTS.
UM, AND SO THERE THERE'S SOMETHING THAT THEY'RE GAINING OUT OF A PROGRAM LIKE THIS, AND WE ARE JUST TRYING TO TAKE A PIECE OF THAT ADDED VALUE.
UM, I WOULD SAY THAT'S PART OF WHY THE INLAND FEES HERE ARE IMPORTANT TO COLLECT.
IF IT BECOMES INFEASIBLE TO HOW'S LOW-INCOME PEOPLE DOWNTOWN, WE WANT TO STILL BE ABLE TO PROVIDE SOME PUBLIC BENEFIT.
AND THAT IS WHY WE'RE TRYING TO PROVIDE HOUSING VOUCHERS TO FOLKS.
UM, BUT IT DOES NOT NECESSARILY MEAN THAT THEY ARE ABLE TO LIVE DOWNTOWN.
AND THAT IS A LIMITATION OF A DENSITY BONUS PROGRAM LIKE THIS.
I WOULD SAY I CAN SEE THE EQUITY CONCERNS THAT ARE PRESENT, AND THERE ARE NOT A LOT OF GREAT SOLUTIONS IN THIS TYPE OF APPROACH WITH THE DENSITY BONUS PROGRAM.
I WAS JUST THINKING THAT BECAUSE TOURISM IS A BIG DEAL IN OUR CITY AND CONVENTIONS
[00:30:01]
AND STUFF, AND HOTELS, UM, ARE ESSENTIAL THAT THE PEOPLE THAT WORK AT THE HOTELS, IT SEEMS LIKE TO ME THAT PERHAPS THE HOTELS MIGHT HAVE AN INVESTMENT IN FACILITATING IT.AND I'M WAS WONDERING IF THERE'S A WAY TO, TO BRING THEM INTO THE PICTURE AND SAY, HEY, IF YOU WANT YOUR LABOR FORCE TO BE SOMEWHERE CLOSE BY, SO YOU CAN CALL ON THEM WHEN YOU NEED THEM AND HAVE THEM AVAILABLE TO YOU WHERE YOU CAN DO THIS, THAT, OR THE OTHER.
AND I'M JUST WONDERING IF THAT'S BEEN DISCUSSED.
UH, SO I THINK IT'S A, IT'S A GREAT APPROACH I'VE SEEN IN OTHER STATES WHERE YOU GET THINGS LIKE COMMUNITY BENEFIT AGREEMENTS THAT TAKE PLACE, AND YOU CAN PROVIDE LIKE A PROVISION FOR WORKFORCE HOUSING IS KIND OF WHAT I, WHAT I HEAR YOU TALKING ABOUT WHERE A PARTICULAR SERVICE INDUSTRY TYPE OF WORK IS SAYING THAT WE NEED TO BE ABLE TO HOUSE OUR, OUR EMPLOYEE POPULATION AS WELL.
WHAT IS, UM, WHAT THE HOUSING MARKET IS PROVIDING AS HOUSING? UM, I HAVE NOT SEEN A LOT OF THOSE TYPES OF AGREEMENTS, BUT THIS WOULD BE A GREAT QUESTION FOR SOME OF OUR ECONOMIC DEVELOPMENT FOLKS WHO PROBABLY HAVE WORKED ON SOME OF THOSE TYPE OF WORKFORCE DEVELOPMENT AGREEMENTS.
UM, AND SO IF THERE'S ANYBODY FROM EDD IN THE ROOM WHO, WHO MIGHT BE ABLE TO ADD TO WHAT I I HAVE MISSED, UM, IT'S SOMETHING I COULD ALSO, YOU KNOW, FOLLOW UP ON, UM, JUST CAUSE I DON'T, I DON'T HAVE A GOOD ANSWER RIGHT NOW.
UM, DO YOU WANT TO HEAR IT FROM QUESTION MONA'S WILL WORK? HELLO? OH YES.
UH, CHRISTINE MCGUIRE WITH THE ECONOMIC DEVELOPMENT DEPARTMENT.
AND I DON'T HAVE A GOOD ANSWER RIGHT NOW THAT THIS IS, UH, THIS IS SOMETHING OBVIOUSLY THAT'S WORTH HAVING A REALLY GOOD, ROBUST ANSWER.
AND I WOULD LIKE TO WORK WITH, UM, I WOULD LIKE TO WORK WITH HOUSING AND PLANNING ON GETTING AN ANSWER BECAUSE I THINK IT'S, IT'S DEFINITELY NOT SOMETHING I WANNA TRY AND DO OFF THE CUFF.
CHAIR, CAN I WEIGH IN HERE FROM A DISTANCE? YES.
THANK YOU VERY MUCH FOR THE PRESENTATION.
AND YOU MAY HAVE TOUCHED THIS, UH, UPON THIS IN SOME PREVIOUS, UH, PRESENTATION.
SO EXCUSE ME, IF I'M GOING BACK INTO, UM, SOME BASIC INFORMATION THAT I THINK IS IMPORTANT, BUT ARE, ARE THESE PROGRAMS DIRECTLY CONNECTED TO PERFORMANCE GOALS OR MATRICES, UH, HAVING TO DO WITH EITHER A CALIBRATED NUMBER OF AFFORDABLE OR, UM, AVAILABLE UNITS DOWNTOWN OR IN SOME SORT OF PERCENTAGE OR RATIO, UH, TO THE TOTAL THAT ARE BEING PROVIDED, UH, OTHERWISE MARKET, UM, UNITS THAT ARE IN THE DOWNTOWN AREA AND KEEP FOR YOUR QUESTION COMMISSIONER AND I WANT TO MAKE SURE I UNDERSTAND IT.
SO YOU'RE ASKING ME IF WE'VE SET, UM, KIND OF GOALS OR OVERALL LIKE NUMBER OF UNITS THAT WE'D LIKE TO BE ABLE TO CREATE THROUGH THIS TYPE OF PROJECT.
IT SEEMS LIKE A PROGRAM LIKE THIS, THERE'D BE SOME MEASURE WHEREBY YOU ARE SAYING, THIS IS WHAT WE ARE STRIVING FOR.
THIS IS HOW WE INDICATE OUR SUCCESS AND THE MOST OBVIOUS ONE BEING EITHER IN SOME NUMERIC OR, OR PERCENTAGE, UH, ASPECT OF, OF, OF HOW DOWNTOWN IS BEING DEVELOPED.
YEAH, IT'S, IT'S A GOOD QUESTION.
AND ONE THAT WE'VE HAD BEFORE, AND TYPICALLY WE SAY IT'S HARD TO SET GOALS AROUND A PROGRAM LIKE THIS BECAUSE IT'S SUBJECT TO VOLATILITY IN THE MARKET.
AND I THINK, UNFORTUNATELY THERE'S BEEN HARDLY A BETTER EXAMPLE CASE THAN LIKE A GLOBAL PANDEMIC COMPLETELY IMPACTING OR, OR LIKE PAUSING CERTAIN DEVELOPMENT ACTIVITY DOWNTOWN OR IN CERTAIN REGIONS.
AND THAT DOESN'T NECESSARILY MEAN IT'S A, YOU KNOW, AN ELEMENT OF OUR PROGRAM BEING SUCCESSFUL OR NOT.
AND THAT'S WHY I SHOWED THAT ORIGINAL DIAGRAM THAT IT'S LIKE, WE NEED ALL OF THESE THINGS TO COME TOGETHER IN ORDER TO CREATE DEVELOPMENT AND PUBLIC POLICY ALONE HAS NEVER GOING TO DRIVE THAT.
SO FOR THAT REASON, WE'VE HESITATED TO CREATE LIKE A, A GOAL FOR PRODUCTION OF UNITS DOWNTOWN, UM, BECAUSE IT'S JUST SUBJECT TO SO MANY OTHER, UM, YOU KNOW, VARIABLES AT ANY GIVEN TIME THAT SAID ONE WAY THAT YOU COULD CONSIDER SUCCESS IN A PROGRAM LIKE THIS, WE'RE TRYING TO CALIBRATE IT SO THAT WE'RE CAPTURING A PORTION OF THAT ONUS UPSIDE, IF YOU WILL.
UM, AND SO A PROGRAM IS SUCCESSFUL IF PARTICIPATION IS HIGH.
IF WE SEE THAT A LOT OF DEVELOPMENTS WHEN GIVEN THE OPTION TO JUST BUILD TO BASE ENTITLEMENTS, TO BUILD THE BONUS, WE SEE THE MAJORITY OF DEVELOPMENT DOWNTOWN BUILDING AND THE BONUS ENTITLEMENTS, WHICH MEANS THAT THERE'S AN INCENTIVE THERE, SOMETHING ABOUT THE CALIBRATION IS WORKING.
UM, BUT WHEN DEVELOPMENT KIND OF SLOWS DOWN OR COMES TO A HALT ENTIRELY, AGAIN, THAT DOESN'T NECESSARILY SPEAK TO THE SUCCESS OF THE
[00:35:02]
POLICY AROUND THIS PROGRAM.AND SO IT'S, IT'S ALSO KIND OF LIMITED IN THAT WAY AT MEASURING, MEASURING THE SUCCESS OF THIS TYPE OF PROGRAM.
I, AND I JUST WAS THINKING ABOUT IT IN TERMS OF YOUR DISCUSSION ON THE, UM, HOA FEES, REALIZING THAT YOUR TOOL AND YOUR FOCUS ON IT AS A W LET'S PUT THIS WAY YOU, YOU TALKED ABOUT IN THE CONTEXT OF A NUMBER OF OTHER ELEMENTS, WHICH HAVE TO BE IN PLAY.
UM, SO IT DOES SEEM TO ME THAT HOW THIS WORKS WITHIN, UM, CONCERT, UH, WITH THOSE OTHER PROGRAMS, SOME OF THEM ARE PRIVATE PROGRAMS PERHAPS, UM, THAT I THINK IT MAY BE EASIER TO UNDERSTAND THAT DYNAMIC NATURE BY THINKING NOT OF ANY ONE TOOL, BUT HOW THIS WHOLE SERIES OF PROGRAMS. AND THERE MAY NOT BE THAT MANY TOOLS AVAILABLE, BUT YOU KNOW, ANY ONE OF THEM THAT, THAT COULD BE CREATED, UM, WORK IN TANDEM WITH EACH OTHER.
AND IF ONE IS CONSTRAINED, OR IF THAT ONE DOES HAVE AN ISSUE THAT OTHERS THEN ARE ADJUSTED OR ARE CONNECTED.
SO THAT ONCE AGAIN, THE OUTCOMES THAT CAN BE PREDICTED OR, OR WOULD, WHAT WOULD EVEN BE A GOAL, UH, TO SAY WE WERE STRIVING FOR, UH, WOULD EITHER BE ACHIEVED, OR WE COULD SPECIFICALLY SAY, BUT FOR THESE TWO OR THREE OTHER COMPONENTS, NOT JUST YOUR PROGRAM, UM, WORKING BETTER OR CONNECTED BETTER TO OUR PROGRAM OR MORE IN SYNC.
SO I, I GUESS I SEE IT IN, IN, IN TERMS OF WHAT YOU PUT IN THE CONTEXT OF POLICY, BUT I THINK THEY'RE MORE, THEY'RE MORE PLAYERS IN THEY'RE MORE FACTORS THAT HAVE TO BE WORKING.
I GUESS I, I, I FEEL MORE COMFORTABLE IF THIS IS, IF YOU, YOU KNOW, YOU START WITH, OKAY, THIS IS WHAT WE HAVE, THIS IS WHAT WE THINK WE CAN ACCOMPLISH.
AND, YOU KNOW, HERE'S HOW THIS TOOL IS AFFECTING THAT.
AND I'M ALSO, YOU KNOW, I WOULD LOVE TO HEAR WHAT OTHER COMMISSIONERS MIGHT THINK ABOUT THAT TOO, IF, UM, IF THERE'S A WAY THAT YOU COULD SEE US BEING ABLE TO MEASURE OR SET GOALS, UM, THAT MAKES SENSE IN THIS TYPE OF PROGRAM.
SO I'D LIKE TO FOLLOW UP, I'D LIKE TO FOLLOW UP ON, UM, COMMISSIONER HEIM, SETH'S, UH, COMMENTS WITH TWO QUICK QUESTIONS.
ONE, HOW MANY UNITS HAVE BEEN, UH, PROVIDED WITH A FEE AND LIEU AND HOW MANY AFFORDABLE UNITS HAVE ACTUALLY, UH, TURNED OUT ON THE GROUND AS A RESULT OF THE PROGRAM? I WOULD NEED A MOMENT TO DIG UP THE NUMBERS.
I DID NOT PULL THOSE UP FOR THIS MEETING.
UM, AND IN TERMS OF FEEDING LU, UH, I ALSO DO NOT HAVE THOSE NUMBERS READILY AVAILABLE.
UM, I HAVE A COWORKER WHO, WHO WORKS ON THE IMPLEMENTATION SIDE OF THIS PROGRAM.
WHO'S PRESENTING TO THE DESIGN COMMISSION LATER THIS MONTH WITH THAT OVERVIEW OF LIKE THE PERFORMANCE OF THE PROGRAM.
AND PERHAPS WE COULD LINE THEM UP TO ALSO SPEAK TO THIS COMMISSION, UM, AND PROVIDE SOME INFORMATION ABOUT WHAT, HOW MANY UNITS HAVE BEEN CREATED ON THE GROUND DOWNTOWN AND THEN WHERE THOSE FEES FEE IN LIEU DOLLARS HAVE GONE.
BUT THAT, I THINK THAT WOULD BE VERY HELPFUL BECAUSE WE'RE, WE'RE TALKING ABOUT, UH, UH, FAIRLY COSTLY FEE FOR DEVELOPERS, BUT IT WOULD ALSO BE HELPFUL TO KNOW WHAT THE REAL IMPACT, NOT THE ASPIRATIONAL IMPACT, THE ASPIRATIONAL IMPACT IS VERY WORTHY, BUT WHAT IT ACTUALLY HAS CREATED TODAY, UM, WE'VE HEARD A LOT OF CRITICISM ABOUT THE LACK OF SUCCESS OF THE PROGRAM, AND AGAIN, UNDERSTANDING MORE CONDITIONS AND I'M IN THE MIDDLE OF THAT MARKET.
SO I UNDERSTAND IT, BUT, UM, YOU KNOW, WE REALLY WANT TO SEE WHAT THE RESULTS TO DATE HAVE BEEN.
AND THAT LEADS ME TO ANOTHER QUICK QUESTION.
UM, AND I KNOW THE DESIGN, I BELIEVE THE DESIGN COMMISSION HAS HAD THEIR OWN COMMENTS ON THIS, BUT, UM, WHAT FEEDBACK HAVE YOU GOTTEN FROM THE DEVELOPMENT, UM, INDUSTRY, UH, THAT, THAT DOES THE WORK DOWNTOWN ON THIS TODAY? UM, YEAH, IT'S A GOOD QUESTION.
WE'VE HAD A FEW MEETINGS WITH OUR KEY STAKEHOLDERS.
I THINK WE'VE MOSTLY WORKED WITH THE DOWNTOWN AUSTIN ALLIANCE AND THE REAL ESTATE COUNCIL OF AUSTIN.
UM, AND THEY'VE BEEN KEY PARTNERS THROUGHOUT THE CALIBRATION WORK BECAUSE THEY'RE CLOSEST TO HELPING US UNDERSTAND HOW WE COULD EVALUATE THE VALUE THAT OUR BONUS ENTITLEMENTS PROVIDE.
UM, AND SO WE'VE WORKED WITH THEM BASICALLY ALL SUMMER TO, TO WORK TOWARDS THE CALIBRATION OF THESE FEES.
UM, WE'VE HEARD A FEW THINGS THAT, YOU KNOW, THERE HAS TO BE AN ADDITIONAL INCENTIVE TO BUILD BONUS ENTITLEMENTS BECAUSE OF THE ADDED RISK
[00:40:01]
THAT, UM, PUTTING MORE UNITS OR MORE OFFICE SPACE ON THE MARKET CAN BRING THEM IF IT DOESN'T LEASE UP THAT TYPE OF THING.AND SO WE'VE ACCOUNTED FOR, UM, ADDITIONAL YIELD ON COST WHEN YOU BUILD BONUS ENTITLEMENTS.
THOSE ARE SOME OF THE FEEDBACK, THINGS THAT WE'VE GOTTEN.
UM, BUT THERE'S, THERE'S A WHOLE LOT OF NUANCE.
YOU'VE PROBABLY HEARD SOME OF THE DOWNTOWN COMMISSION ALSO TALKING ABOUT, UM, YOU KNOW, THERE'S A PRETTY INTRICATE RELATIONSHIP BETWEEN PARKING AND THE VALUE OF, UM, OR IN THE COST AND VALUE OF DEVELOPMENT TOO.
AND SO THAT HAS SPARKED SOME CONVERSATIONS ABOUT, UM, INSTEAD OF HAVING A SINGLE FEE, POTENTIALLY IF WE'RE ABLE TO INCENTIVIZE SOMETHING LIKE REDUCED PARKING DOWNTOWN, MAYBE THEY COULD PAY A LOWER FEE.
UM, THAT I BELIEVE WAS IN ONE OF THE DOWNTOWN DESIGN COMMISSIONS, UH, RESOLUTIONS THAT THEY PASSED.
THAT'S SOME FEEDBACK WE'VE GOTTEN.
THE DESIGN COMMISSION ALSO SPOKE TO A DESIRE TO SEE MORE HOUSING CREATED WITH THESE FEES INSTEAD OF JUST GOING TOWARDS HOUSING VOUCHERS, WHICH IS ITSELF NOT BUILDING HOUSING, BUT GETTING FOLKS INTO HOUSING WHO MIGHT HAVE BARRIERS ON THEIR PATH TO GET THERE.
UM, WE'VE HEARD THAT THE COMMERCIAL MARKET FOR SURE.
UM, I MEAN, SO THE 2014, THE ORIGINAL FEES FOR THIS PROGRAM WERE $0 FOR, UH, COMMERCIAL PROJECTS.
AND SO WHEN THE INTERIM FEES CAME ONLINE AND THEY WERE SHOWING, YOU KNOW, UP TO $18 FOR A COMMERCIAL DEVELOPMENT, UM, THERE WAS A LOT OF CONCERN ABOUT THE, THAT THAT COULD HAVE ON THE MARKET, UH, ESPECIALLY IN TODAY'S CONDITIONS.
AND I THINK OUR CALIBRATION WORK HAS DEFINITELY SHOWN THAT, THAT THOSE FEES MIGHT HAVE BEEN FEASIBLE.
IT REALLY KIND OF THE ZENITH OF AUSTIN'S DOWNTOWN DEVELOPMENT BACK IN 2019, BUT THAT IS NOT THE CASE TODAY.
UM, AND SO I THINK WE'VE HEARD A LOT OF SUPPORT FOR BRINGING THAT FEE, UH, LOWER TO ACTUALLY MATCH TODAY'S MARKET CONDITIONS.
UM, AND THEN THERE'S ALSO A REALLY GOOD DISCUSSION TO BE HAD ABOUT JUST INCENTIVIZING THE CREATION OF HOUSING DOWNTOWN OVER, UH, POTENTIALLY OVER COMMERCIAL DEVELOPMENT.
YOU KNOW, SOME FOLKS HAVE TOLD US, WE THINK THERE'S ENOUGH COMMERCIAL DEVELOPMENT DOWNTOWN.
WE NEED MORE HOUSING NOW LET'S, UH, TRY AND INCENTIVIZE HOUSING MORE INSTEAD OF KIND OF KEEPING A, A POLICY NEUTRAL APPROACH ON THAT.
UM, AND WE HAVEN'T RECEIVED, YOU KNOW, COUNCIL DIRECTION ON THAT, BUT THOSE ARE, THOSE ARE SOME OF THE THINGS THAT WE'VE HEARD AS WELL FROM OTHER FOLKS.
UM, THANK YOU SO MUCH FOR YOUR PRESENTATION AND YOUR ANSWERS.
AND, UM, I HOPE IN ADDITION TO TALKING TO THE REAL ESTATE GROUPS FOR DOWNTOWN IN THE DOWNTOWN AUSTIN ASSOCIATION, THAT YOU WOULD ALSO SPEAK TO SEVERAL DEVELOPERS DIRECTLY FOR COMMERCIAL AND DEVELOPERS FOR RESIDENTIAL, JUST ONE-ON-ONE THAT'S MY SUGGESTION.
IS THERE ANY ACTION THAT YOU'RE LOOKING FROM US TONIGHT FOR, FROM US TONIGHT? I'LL BE HONEST THAT THE CALENDAR WAS SUPPOSED TO ALIGN WHERE WE HAD A FEE THAT Y'ALL COULD CONSIDER FOR ACTION TO RECOMMEND OR NOT RECOMMEND TODAY.
UM, THAT BEING SAID THAT THE STAFF RECOMMENDATION ON THE FEE HAS NOT BEEN FINALIZED.
I'VE BEEN ABLE TO PROVIDE SOME DIRECTIONALITY.
WE THINK RESIDENTIAL FEE COULD GO UP, COMMERCIAL FEE WILL GO DOWN.
UM, BUT I DO NOT HAVE AN ITEM FOR COUNCIL OR FOR THIS COMMISSION TO, UM, TAKE ACTION ON.
UM, BUT AS YOU MIGHT HAVE SEEN DESIGN COMMISSION HAS TAKEN A VARIETY OF ACTIONS JUST RELATED TO THE DOWNTOWN DENSITY BONUS PROGRAM.
UM, WHAT IS ON IN THE CODE TODAY.
AND SO, UM, IF THERE IS A PARTICULAR DIRECTION THAT THIS COMMISSION WOULD LIKE TO SEE THAT PROGRAM GO, THAT'S ALSO I SUPPOSE, ON THE TABLE.
DO I HAVE ANY COMMISSIONER TO CARE TO MAKE A MOTION ON THIS PARTICULAR ITEM HEARING NONE.
THANK YOU VERY MUCH FOR COMING THIS EVENING.
WE SURE APPRECIATE YOUR PRESENTATION.
LOOK FORWARD TO GETTING THE STATS ON THE ACTUAL PRODUCTION.
IF YOU WOULD BE KIND ENOUGH TO GET THAT TO MONA OR CHRISTINE FOR DISTRIBUTION TO THE COMMISSION.
I WOULD CERTAINLY APPRECIATE IT.
YEAH, I THINK I CAN DEFINITELY DO THAT.
THANK YOU ALL COMMISSIONERS FOR YOUR TIME TONIGHT.
AND WE WANT TO, I IMAGINE I CAN GET THE SLIDE DECK THAT'S GIVEN TO THE DESIGN COMMISSION THAT HAS THAT INFORMATION TO, UH, TO DISTRIBUTE TO THIS COMMISSION AS WELL.
[2.b. Briefing on the Convention Center Redevelopment and Expansion Project: Presentation by Trisha Tatro and Katy Zamesnik, Austin Convention Center Department (ACCD)]
UH, NEXT ITEM OF BUSINESS IS BRIEFING ON THE CONVENTION CENTER, REDEVELOPMENT AND EXPANSION PROJECT.WE HAVE TRISHA TETRO AND KATIE'S IMMENSE.
SO MEZ NICK, UH, FROM THE AUSTIN CONVENTION CENTER DEPARTMENT.
THANK Y'ALL FOR COMING BACK TO OUR MEETING AND FOR BEING ALIVE IN PERSON, THE FLOOR IS YOURS.
[00:46:13]
THERE YOU GO.I'M THE INTERIM DIRECTOR FOR THE, OR I AM THE ACTUAL DIRECTOR FOR THE CONVENTION CENTER.
UM, I'M JOINED BY KATIE'S, MESNICK THE CHIEF ADMINISTRATIVE OFFICER FOR THE CONVENTION CENTER.
UH, WE'RE COMING BACK BEFORE YOU TONIGHT TO DISCUSS THE REDEVELOPMENT AND EXPANSION PROJECT IN GREATER DETAIL.
AND TO ANSWER QUESTIONS THAT YOU MIGHT HAVE ABOUT OUR NEXT STEPS, JUST A QUICK OVERVIEW OF WHAT WE'RE GOING TO DISCUSS WITH YOU THIS EVENING.
UH, WE'RE STARTING WITH A VERY BRIEF OVERVIEW OF THE STATE LAW AND, UH, HOTEL OCCUPANCY TAX.
WE'RE GOING TO PROVIDE YOU WITH SOME CLARITY AROUND THE MAIN SOURCE OF FUNDING FOR THE REDEVELOPMENT AND THE EXPANSION OF THE EXISTING CONVENTION CENTER.
AND THEN WE'RE GOING TO WALK YOU THROUGH THE LONG HISTORY OF THE PLANNING FOR THIS PROJECT.
AND THIS IS ALL REQUESTED INFORMATION THAT WAS PROVIDED TO THE COMMISSION FROM CONVENTION CENTER STAFF.
UH, FINALLY, WE WOULD LIKE TO LET YOU KNOW WHERE WE'RE GOING.
WE'RE PLANNING TO GO FROM HERE AND THEN ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE.
I WILL TURN IT OVER TO KATIE TO DISCUSS THE HOTEL OCCUPANCY TAX.
I THINK YOU MIGHT TO PUSH YOUR BUTTON, YOUR HONOR.
CAN YOU TELL WHERE A LITTLE REST EXCUSE ME, DID WE LOSE AUDIO? UM, WE'RE NOT HEARING ANY OF THE PRESENTATION CAN YOU HEAR ME? YEP.
UM, SO I CAN GO BACK JUST A SECOND.
SO, UM, YES, IN THE LAST FIVE YEARS, THE HOTEL OCCUPANCY TAX FUND HAS TRANSFERRED ABOUT $89 MILLION, UM, TO THESE RESPECTIVE FUNDS, UM, BASED, YOU KNOW, THEY'RE NOT ALL EQUAL THEY'RE BASED ON WHEN THEY WERE CREATED.
[00:50:01]
AND SO THE EXPENDITURES OF THESE FUNDS IS HANDLED BY OUR LOVELY ECONOMIC DEVELOPMENT DEPARTMENT, UM, AND NOT BY THE AUSTIN CONVENTION CENTER.UM, ONE THING THAT WE ARE WANTING TO NOTE IS THAT THE ADDITIONAL ALLOCATION FOR HISTORIC PRESERVATION AND THE LIVE MUSIC FUND, UM, IF WE ARE NO LONGER ABLE TO COLLECT THE ADDITIONAL 2% FOR THE EXPANSION PROJECT.
SO THAT WOULD MEAN THAT EXPANSION DOES NOT MOVE FORWARD.
UM, THE CITY WOULD LOSE THE REVENUE SOURCE FOR THE LIVE MUSIC FUND AND THE ADDITIONAL 15% FOR HISTORIC PRESERVATION.
THAT'S BEING ALLOCATED FROM THE ADDITIONAL 2% FOR EXPANSION.
SO OUR TOURISM AND PROMOTION FUND ALSO RECEIVES A PORTION OF HOTEL OCCUPANCY TAX.
UM, THE TOURISM AND PROMOTION FUND ALLOCATION FORMS, THE BASIS OF THE CITY'S CONTRACT WITH VISIT AUSTIN.
UM, THEY ARE THE OFFICIAL DESTINATION MARKETING ORGANIZATION FOR THE CITY.
UH, WE CONTRACT WITH THEM TO MARKET AUSTIN NATIONALLY AND INTERNATIONALLY AS A PREMIER CONVENTION AND LEISURE DESTINATION.
UM, AND THEY ALSO HOUSED THE AUSTIN FILM COMMISSION, THE AUSTIN MUSIC OFFICE, THE AUSTIN SPORTS COMMISSION AND THE VISIT AUSTIN FOUNDATION.
AND FINALLY, AFTER ALL OF THAT FOUR AND A HALF PERCENT OF THE 11% GOES TO PAY, OH, SORRY, OF THE 9% GOES TO PAY DEBT SERVICE ON THE CONVENTION CENTERS, ORIGINAL BONDS PER THE BOND COVENANTS COVER ANY DEFICIENCIES THAT MAY EXIST IN THE VENUE PROJECT FUND, WHICH WAS THE ALLOCATION FOR THE ORIGINAL 2%.
UM, AND THEN TRANSFERS ANY REMAINING BALANCE TO THE CONVENTION CENTER OPERATING FUND TO SUPPORT CONVENTION CENTER OPERATIONS AS ALLOWED BY STATE LAW.
AND I REALIZED THAT WAS A LITTLE BIT LONG IN THE BACKUP THAT WE PROVIDED TO YOU GUYS.
WE DO HAVE A GRAPHIC FOR YOU, AND I CAN CERTAINLY RESEND THAT BACK OUT TO YOU AS WELL.
UM, SO THAT YOU CAN GET A BIT MORE OF A VISUAL REPRESENTATION ON KIND OF HOW THAT ALL FLOWS.
AND SO THAT'S SORT OF THE OVERVIEW FOR THE HOTEL OCCUPANCY TAX.
UM, AND WITH THAT, I'LL GO AHEAD AND TURN IT BACK OVER TO TRICIA.
SO HOW DID WE GET HERE? UH, YOU HAVE SEEN THIS SLIDE FROM OUR JULY PRESENTATION BEFORE THE COMMISSION.
THE IDEA OF AN EXPANSION HAS BEEN CONTEMPLATED FOR NEARLY A DECADE, UH, AND WAS FIRST FORMALLY DECLARED IN 2015 WITH THE PUBLICATION OF THE LONG RANGE MASTER PLAN.
IT RECOMMENDED A NON-CONTIGUOUS EXPANSION TO THE WEST AND A RECOMMENDATION THAT WAS CARRIED THROUGH SUBSEQUENT STUDIES BETWEEN 2015 AND 2017 AT COUNCIL'S DIRECTION.
THE UT CENTER FOR SUSTAINABLE DEVELOPMENT STUDIED A POTENTIAL EXPANSION AND CONCLUDED THAT A WEST EXPANSION WAS THE ONLY VIABLE OPTION.
THE FULLER HISTORY IS INCLUDED IN THE COMPREHENSIVE DOCUMENT THAT WAS PROVIDED BEFORE THE COMMITTEE TO THE COMMISSION.
LAST MONTH, COUNCIL AUTHORIZED THE COLLECTION OF AN ADDITIONAL 2% HUT IN LATE 2019 IN SUPPORT OF AN EXPANSION.
AND AT THE SAME TIME, THE CONVENTION CENTER STAFF WORKED TOWARDS A MASTER PLAN UPDATE, AN ECONOMIC IMPACT STUDY TO CONFIRM THE VIABILITY OF AN EXPANSION.
THESE REPORTS WERE RELEASED IN AUGUST OF 2020, FOLLOWING THIS, THE COUNCIL APPROVED THE CMR METHODOLOGY IN JUNE OF THIS YEAR, WHICH ALLOWED THE CENTER TO ISSUE AN RFP, AN RFQ FOR ARCHITECT AND ENGINEERING SERVICES, AS WELL AS AN RFP FOR CONSTRUCTION SERVICES.
THESE CONTRACTS WILL GO BACK BEFORE COUNCIL FOR APPROVAL IN 2022, I WANTED TO BRIEFLY DISCUSS SOME OF THE REPORTS IN A LITTLE MORE DETAIL.
THE LONG RANGE MASTER PLAN PRESENTED IN 2015 TO THE CITY COUNCIL CONCLUDED THAT MOVING, UH, MOVING THE CENTER OUTSIDE OF THE CORE OF DOWNTOWN WAS NOT VIABLE AND THAT THE CONVENTION CENTER NEEDED TO MAINTAIN PROXIMITY TO THE EXISTING AND PLANNED HOTEL, SUPPLY, DINING AND ENTERTAINMENT.
THE PLAN CONCLUDED THAT THE CENTER NEEDED TO REMAIN IN DOWNTOWN AND THAT IT NEEDED TO EXPAND TO THE WEST.
FOLLOWING THE PRESENTATION ON THE LONG RANGE MASTER PLAN COUNCIL PASSED A RESOLUTION WHICH REQUESTED THAT THE URBAN LAND INSTITUTE REVIEW THE PLAN.
THE ULI FORMED A TECHNICAL ASSISTANCE PANEL IN THE SPRING OF 2015 AND REAFFIRMED THE FINDINGS IN THE LONG RANGE MASTER PLAN.
SUBSEQUENTLY COUNCIL PASSED A RESOLUTION THAT CREATED THE VISITOR IMPACT TASK FORCE.
THE TASK FORCE WAS A GROUP OF 18 COMMUNITY MEMBERS APPOINTED BY COUNCIL TO REVIEW AMONG OTHER THINGS, THE EXPANSION PROJECT, AND HOW TO BEST UTILIZE HOTEL OCCUPANCY TAX TO IMPACT TOURISM.
THEY PUBLISHED THEIR REPORT IN JUNE OF 2017.
THE REPORT IS PART OF THE BACKUP THAT WE PROVIDED TO YOU A FEW WEEKS AGO.
THIS REPORT GENERALLY SUPPORTED AN EXPANSION WITH CONDITIONS AND PROVIDED GUIDANCE ON THE PUBLIC FACING AND COMMUNITY-RELATED ELEMENTS WITHIN THE EXPANSION PROJECT.
FOLLOWING THE DELIVERY OF THAT REPORT, COUNCIL APPROVED AN INTER LOCAL AGREEMENT WITH THE CENTER FOR SUSTAINABLE DEVELOPMENT AND DESIGN AT THE UNIVERSITY OF TEXAS IN 2017 TO CONDUCT A STUDY REGARDING THE
[00:55:01]
AUSTIN CONVENTION CENTER RELATING TO THE PHYSICAL AND ECONOMIC PLANNING IMPACTS OF THE ALTERNATIVE CONVENTION CENTER SCENARIOS.THIS STUDY ALSO INCLUDED AS PART OF, WAS ALSO INCLUDED AS PART OF THE BACKUP, AND IT WAS FINALIZED IN 2019 AND PRESENTED TO CITY COUNCIL.
THE REPORT STUDIED A VARIETY OF SCENARIOS FOR THE EXPANSION.
THE PREFERRED SCENARIO, AS NOTED BY COUNCIL IN THE PALM DISTRICT RESOLUTION WAS SCENARIO FIVE IN 2018 COUNCIL THEN ESTABLISHED THE TOURISM COMMISSION TO RECEIVE EXPERTISE AND RECOMMENDATIONS TO CITY COUNCIL ON HOT ISSUES THAT INVOLVED THE TOURISM INDUSTRY, PART OF THEIR CHARGE WAS TO PROVIDE THE GUIDANCE ON PLANNED EXPANSIONS OF THE CONVENTION CENTER.
AND IN 2019, THE COMMISSION PASSED A RESOLUTION WHICH SUPPORTED THE FINDINGS IN THE VISITOR IMPACT TASK FORCE AND RECOMMENDED THAT THESE FINDINGS FORM THE GUIDING FRAMEWORK FOR THE EXPANSION PROJECT.
THE CONVENTION CENTER HAS WORKED VERY CLOSELY WITH THE COMMISSION SINCE ITS INCEPTION AND WILL CONTINUE TO DO SO AS WE MOVE THROUGH THE REDEVELOPMENT AND EXPANSION PLAN, ALSO IN MAY OF 2019, THE CITY COUNCIL PASSED A RESOLUTION BETTER KNOWN AS THE PALM DISTRICT RESOLUTION AND THIS DOCUMENT IN PART NOTED THAT I QUOTE THE CITY COUNCILS, THE CITY COUNCIL DESIRES TO REVISION REINVISION THE CONVENTION CENTER AS AN ACTIVE COMMUNITY ORIENTED CIVIC BUILDING THAT ENHANCES THE CULTURALLY RICH FABRIC OF THE PALM DISTRICT AND DESIRES TO BEGIN THE PROCESS TO EXPAND TO THE AUSTIN CONVENTION CENTER.
AND IT DIRECTED THE CITY MANAGER TO DEVELOP AN INITIAL DESIGN AND FINANCING MECHANISM FOR THE EXPANSION IN AUGUST OF 2019, COUNCIL APPROVED AN ORDINANCE WHICH RAISED, UH, THE MUNICIPAL HOT RATE BY AN ADDITIONAL 2% IN SUPPORT OF THE EXPANSION AS PART OF THE APPROVAL OF THIS ADDITIONAL 2%.
THE ORDINANCE ALSO ALLOCATED AN ADDITIONAL 15% OF THE NEW 2% TO HISTORIC PRESERVATION AND CULTURAL ARTS VIA THE LIVE MUSIC FUND, THE CONVENTION CENTER, ENGAGED CONSULTANTS TO WORK ON A MASTER PLAN UPDATE AND AN ECONOMIC IMPACT.
AND BY MARKET VIABILITY STUDY, THOSE DOCUMENTS ARE LINKED IN THE RESPONSE AND THEY WERE PROVIDED TO YOU IF YOU WEEKS AGO THAT THESE REPORTS WERE RELEASED IN AUGUST OF 2020 AND WERE PRESENTED TO COUNCIL, THE MASTER PLAN UPDATE INCLUDED TWO POSSIBLE DESIGN SCENARIOS FOR THE EXPANSION TO THE WEST AND A REDEVELOPMENT OF THE EXISTING CONVENTION CENTER BUILDING AS CALLED FOR IN THE PREVIOUS STUDIES, THE MASTER PLAN UPDATE PROGRAMMING CALLS FOR 450,000 SQUARE FEET OF EXHIBIT HALL SPACE UP TO 140,000 SQUARE FEET OF MEETING SPACE AND UP TO 120,000 SQUARE FEET OF BALLROOM SPACE.
THE SPACING REQUIREMENTS ALSO ALLOW FOR PRIVATE DEVELOPMENT ON THE SITE OF THE EXISTING CONVENTION CENTER, AS WELL AS MIXED USE AND COMMUNITY SPACES BASED ON THE PROGRAMMATIC REQUIREMENTS AND THE MASTER PLAN UPDATE THE CON PANION REPORT ON THE ECONOMIC IMPACT AND MIKE MARKET VIABILITY OF THE PROJECT CONCLUDED THE FOLLOWING HAD ESTIMATED THAT THE ECONOMIC IMPACT TO AUSTIN AT COMPLETION WOULD BE $300 MILLION OF ECONOMIC IMPACT ON THE LOCAL COMMUNITY.
IT WOULD PROVIDE 14 MILLION IN TAX REVENUE TO THE CITY AND SUPPORT OVER 1700 ADDITIONAL JOBS EXPANSION OF THE AUSTIN CONVENTION CENTER IN CONJUNCTION WITH ONGOING INITIATIVES, INCLUDING WATERLOO GREENWAY, THE PALM DISTRICT PROJECT CONNECT WILL ALL TRANSFORM THE SOUTHEAST CORNER OF DOWNTOWN INTO A COMMUNITY CENTRIC DESTINATION.
AND THE EXPANSION WILL GREATLY EXPAND THE AVAILABLE RETAIL SPACE OF THE EXISTING CONVENTION CENTER, ALLOWING THE CENTER TO REMAIN COMPETITIVE IN THE CONVENTION CENTER MARKET.
IN ORDER TO MINIMIZE THE PROJECT DELAYS AND BUDGET IMPACTS TO THE REDEVELOPMENT AND EXPANSION PROJECT WHILE THE FINANCING OPTIONS WERE FINALIZED, STAFF TOOK FORTH THE RCA ON JUNE 10TH, 2021 TO THE COUNCIL AGENDA.
AND IT REQUESTED THAT APPROVED THE USE OF THE CONSTRUCTION MANAGER AT RISK METHOD FOR CON TRACKING AS THE PROJECT DELIVERY METHOD APPROVAL OF THIS ITEM ALLOWED THE STAFF TO CONTINUE OUR DUE DILIGENCE AND OUR WORK ON THE EXPANSION AND ALLOWS US TO KEEP WITHIN THE CURRENT TIMELINE DELAYS TO THE PROJECT.
TIMELINE MEANS SIGNIFICANT COST INCREASES TO THE OVERALL PROJECT IN TANDEM TO THIS ITEM, COUNCIL PASSED A RESOLUTION WHICH PROVIDES FURTHER DIRECTION FOR ELEMENTS TO INCLUDE IN THE REQUEST FOR QUALIFICATIONS, FOR ARCHITECTURAL AND ENGINEERING SERVICES.
AND IT DIRECTS THAT REPRESENTATIVES FROM THE CENTER FOR SUSTAINABLE DEVELOPMENT AT THE UNIVERSITY OF TEXAS,
[01:00:01]
THE PALM DISTRICT, THE DOWNTOWN AUSTIN ALLIANCE, AND THE WATERLOO GREENWAY ALSO BE INCLUDED IN THE EVALUATION PANEL FOR THE RFQ.IN ADDITION TO CITY STAFF, WE'VE BEEN WORKING DILIGENTLY TO INCORPORATE THE DIRECTION IN THE RFQ THAT WILL BE RELEASED WHEN THE FINANCING PLAN IS FINALIZED.
THIS SLIDE SUMMARIZES COUNCIL'S ACTION ON EXPANSION WHILE NOT ENTIRELY COMPREHENSIVE, WE FELT IT WAS IMPORTANT TO HIGHLIGHT THE HARD WORK THAT'S BEEN DONE BY COUNCIL TO DATE RELATED TO THE EXPANSION.
ALL OF THESE ITEMS ARE IN THE COMPREHENSIVE RESPONSE DOCUMENT THAT WAS PROVIDED TO THE COMMISSION.
AND AS YOU CAN SEE, THE REDEVELOPMENT AND EXPANSION PROJECT HAS BEEN DISCUSSED THAT DID AND VOTED ON MANY TIMES OVER THE YEARS, THE VALUABLE GUIDANCE AND DIRECTED DIRECTION PROVIDED BY OUR COMMUNITY STAKEHOLDERS.
SUBJECT MATTER, EXPERTS AND COUNCIL HAVE RESULTED IN A CONCEPT FOR A CONVENTION CENTER, REDEVELOPMENT AND EXPANSION.
THAT WILL BE A GREAT ASSET TO THE PALM DISTRICT, OUR COMMUNITY, AND TO OUR OUT OF TOWN GUESTS FOR DECADES TO COME.
SO WHERE DO WE GO FROM HERE? AS WE'VE SHOWN YOU THROUGH THE PREVIOUS SLIDES, THERE IS A LOT OF TIME, EFFORT AND RESEARCH.
THAT'S GONE INTO THE PLANS FOR THE CONVENTION CENTER, REDEVELOPMENT AND EXPANSION.
THE FOUR DOCUMENTS SHOWN ON THE SCREEN HAVE FORMED THE GUIDING FRAMEWORK FOR EXPANSION THOUGH.
THEY ARE NOT THE ONLY MEANS, AND IT IS NOT AN EXCLUSIVE LIST.
THESE ARE PRESENTED IN NO PARTICULAR ORDER OF IMPORTANCE, BUT MUCH RATHER THEY WORK TOGETHER IN CONCERT TO DRIVE US FORWARD DIVING INTO EACH OF THESE A LITTLE BIT MORE SCENARIO, FIVE OF THE UT STUDY IN THEIR WORDS ALLOWS FOR THE CONVENTION CENTER TO FULLY EMBRACE A TRANSFORMED WALLER CREEK.
THIS SCENARIO ORIENTS THE FRONT DOOR OF THE CONVENTION CENTER TOWARDS THE CREEK ACTIVATES TRANSPORTATION CORRIDORS THAT HAVE BEEN SHUT OFF BY THE EXISTING CONVENTION CENTER INCORPORATES GREEN SPACE FOR PUBLIC USE AND ALLOWS FOR OPPORTUNITIES FOR PUBLIC PRIVATE PARTNERSHIP WITHIN THE EXISTING FOOTPRINT.
THE COMBINED REDEVELOPMENT AND EXPANSION WOULD QUOTE, BRING NEW PUBLIC SPACE TO THE DISTRICT THAT IS DESIGNED TO BE USED BY THE LOCAL COMMUNITY, AS WELL AS VISITORS TO THE CITY.
AS NOTED COUNSEL EXPRESSED STRONG PREFERENCE FOR SCENARIO FIVE, AS THE GUIDING FRAMEWORK FOR THE REDEVELOPMENT AND EXPANSION OF THE EXISTING CENTER.
THIS WAS EVIDENCED BY THE LANGUAGE AND THE PALM DISTRICT RESOLUTION PASSED IN MAY OF 2019.
THE LANGUAGE IN THE RESOLUTION SPEAKS OF SCENARIO FIVE AND IT DIDN'T, AND THERE IS ONE QUOTE THAT SAYS IT BEST EMBODIES THE DESIGNED RE REINVISIONING OF WHAT A CONVENTION CENTER CAN BE, INCLUDING NOT ONLY ADDITIONAL CONVENTION SPACE, BUT ALSO REMOVING EXISTING ELEMENTS TO CREATE AN ENHANCED PUBLIC SPACE PLACEMAKING AND CONNECTIVITY WITHIN THE PALM DISTRICT, ESPECIALLY ALONG SECOND STREET WALNUT CREEK AND PALM PARK.
THE PALM DISTRICT ALSO CLEARLY STATES COUNCIL'S VISION FOR EXPANSION NOTABLY THE CITY COUNCIL DESIRES TO REINVISION THE CONVENTION CENTER AS AN ACTIVE COMMUNITY ORIENTED CIVIC BUILDING THAT ENHANCES THE CULTURALLY RICH FABRIC OF THE PALM DISTRICT AND DESIRES TO BEGIN THE PROCESS TO EXPAND THE CONVENTION CENTER.
THE PALM DISTRICT PLANNING TEAM WAS ALSO CREATED AS PART OF THIS RESOLUTION.
AND THE CONVENTION CENTER HAS BEEN A STRONG AND ACTIVE PARTNER IN THE PLANNING EFFORTS FROM THE VERY BEGINNING, THE MASTER PLAN UPDATE INCORPORATED ALL OF THE DIRECTION AND STUDIES DONE PREVIOUSLY, INCLUDING THE UT STUDY AND THE DIRECTIVES OF THE PALM DISTRICT RESOLUTION.
THE UPDATE WAS NOT INTENDED TO BE COMPREHENSIVE, COMPREHENSIVE MASTER PLAN ITS PURPOSE WAS TO EXPLORE ALTERNATIVE DEVELOPMENT AND PHASING STRATEGIES THAT REFLECT THE CHARACTERISTICS OF SCENARIO FIVE, BUT WITHIN THE CONTEXT OF PROGRAMMATIC AND OPERATIONAL REQUIREMENTS, TO BE A VIABLE SOLUTION FOR THE CONVENTION CENTER, THE UPDATE DEVELOPED TO DESIGN SCENARIOS, WHICH REPRESENTS STRATEGIES FOR IMPLEMENTATION THAT MINIMIZE DISRUPTION TO THE BUSINESS OPERATIONS AND FUNCTIONALITY OF THE CONVENTION CENTER DURING DEMOBILIZATION AND CONSTRUCTION, RATHER THAN THE FULL-BLOWN DESIGN IN BOTH SCENARIOS, A SUBSTANTIAL PORTION OF THE REDEVELOPMENT WOULD OCCUR UNDERGROUND RESULTING IN A MORE COMPACT CONVENTION CENTER THAT ALLOWS OPPORTUNITIES FOR MIXED USE DEVELOPMENT, TRANSPORTATION, CORRIDORS, AND CONNECTIVITY TO THE REST OF THE PUMP DISTRICT.
FINALLY, COUNCIL'S RESOLUTION PASSED IN JUNE OF 2021, PROVIDED US WITH A CLEAR DESIGN GUIDELINES FOR THE REDEVELOPMENT AND EXPANSION PROJECT.
MORE SPECIFICALLY, THE RESOLUTION NOTES THAT QUOTE THE CITY COUNCIL SEEKS TO WORK WITH THE DESIGN TEAM CAPABLE OF DELIVERING A WORLD-CLASS DESIGN,
[01:05:01]
BENEFITING A CITY OF AUSTIN SIZE AND PROMINENCE.THE CONVENTION CENTER DESIGN SHALL PROVIDE MORE THAN JUST A FUNCTIONAL SPACE FOR CONVENTIONS.
THAT DESIGN SHALL INCORPORATE THE MOST INNOVATIVE IDEAS AND PROGRAMMING AND PLACEMAKING AND SHALL AIM TO CREATE A CIVIC BUILDING THAT DRAWS AND SERVES PROGRAMMING AND PLACEMAKING AND SHALL AIM TO CREATE A CIVIC BUILDING THAT DRAWS AND SERVES AUSTINITES AS WELL AS VISITORS.
THE CITY COUNCIL AFFIRMS ITS INTENTION THAT THE CONVENTION CENTER BE LIKE ITS COMPANION CIVIC BUILDING TO THE WEST, THE AUSTIN CENTRAL LIBRARY, A LANDMARK OF GREAT DISTINCTION, A BUSTLING AND VITAL PUBLIC GATHERING PLACE, AND A POINT OF PRIDE FOR THE COMMUNITY.
THESE ELEMENTS SPELLED OUT WITHIN THE RESOLUTION HAVE BEEN INCORPORATED IN THE DRAFT RFQ DOCUMENTS THAT LEADS US TO TODAY.
AS I'VE NOTED PREVIOUSLY, WE'RE FINALIZING THE RFQ DOCUMENTS AND THE FINANCING PLAN WHEN COMPLETE, WE WILL BRING THE FINANCING PLAN AND PROOF OF CONCEPT TO THE CITY COUNCIL.
OUR GOAL IS TO HAVE THE RFQ RELEASED THIS FALL, FOLLOWED BY THE RFP FOR CONSTRUCTION SERVICES A FEW MONTHS AFTER WE'RE TARGETING CONTRACT EXECUTION WITH THE SELECTED FIRMS IN THE SPRING OR SUMMER OF 22, AND WE CAN BEGIN AND THEN WE WOULD BEGIN THE DESIGN PROCESS IN EARNEST.
WE'VE KEPT COUNCIL APPRISED OF ALL OF OUR EFFORTS TO DATE AND WE WILL CONTINUE TO DO SO AS WE MOVE FORWARD, WE UNDERSTAND THAT THE COMMISSION HAS AN ITEM ON TONIGHT'S AGENDA TO DISCUSS THE CREATION OF A WORKING GROUP RELATED TO THE REDEVELOPMENT AND THE EXPANSION OF THE CONVENTION CENTER.
WE CERTAINLY VALUE THE COMMUNITY'S INPUT AND CONSIDER THE DOWNTOWN COMMISSION TO BE A KEY STAKEHOLDER.
AS WE MOVE FORWARD, WE ARE HAPPY TO MAKE OURSELVES AVAILABLE TO THE WORKING GROUP TO PROVIDE ANY ADDITIONAL INFORMATION THAT THE WORKING GROUP MAY NEED AT THEIR REQUEST AND PROVIDE PROJECT UPDATES AS NECESSARY TO THE COMMISSION.
WE BELIEVE THAT NOW'S THE PERFECT TIME FOR THE COMMISSION TO FORMULATE ITS PRIORITIES FOR THE DESIGN ELEMENTS AND OUTCOMES OF THE REDEVELOPMENT AND EXPANSION PROJECT, MUCH LIKE THE DOWNTOWN AUSTIN ALLIANCE HAS RECENTLY DONE.
AND WITH THAT, WE ARE HAPPY TO ANSWER ANY QUESTIONS ABOUT THE PRESENTATION AND I THANK YOU VERY MUCH FOR YOUR TIME.
[2.c. Discussion and possible action on the creation of a Convention Center Expansion Working Group]
UH, OPENED UP THE FLOOR TO QUESTIONS, MR. GOMEZ, THANK YOU FOR THE PRESENTATION.UM, I WAS WONDERING, UM, WHERE, UH, IN THE DEVELOPMENT OF THE CONVENTION CENTER, THERE WAS SOME DISCUSSION SOME YEARS BACK BY CREATING A FUNDING STREAM TO PROVIDE, UM, AN ONGOING, ONGOING FUNDING FOR HOMELESS SERVICES.
CAN YOU TELL ME WHERE IN THE 2% OF THE 15% OF THE 2% OF THE 11% OR WHATEVER, UH, IT'S SUPPOSED TO GO TOWARDS THAT AND, AND, AND I HAVE A FOLLOW-UP QUESTION ON, OKAY.
UM, SO THE HOMELESSNESS FUNDING THAT YOU ARE SPEAKING OF IS RELATED TO THE T PID.
SO THE TOURISM PUBLIC IMPROVEMENT DISTRICT, UM, THAT WE WAS POSTPONED I NOVEMBER OF LAST YEAR, UM, JUST DUE TO SOME CONCERNS FROM THE HOTEL GROUPS AND, AND THE ONGOING PANDEMIC.
UM, SO WE CAN CERTAINLY GET YOU SOME MORE INFORMATION ABOUT THE T-PAIN.
I DO UNDERSTAND THAT THE CONVERSATIONS HAVE BEGUN AGAIN.
UM, BUT ESSENTIALLY THE BUSINESS THAT THE CONVENTION CENTER WOULD BRING THE WHOLE, RATHER THAN TRY TO WALK THROUGH, BECAUSE IT'S BEEN AWHILE SINCE I'VE, I'VE GONE THROUGH THE TEA PIT, UM, WE WILL CERTAINLY FOLLOW UP AND PROVIDE YOU SOME, WE'VE GOT SOME GOOD PRIMERS ON HOW THE T PYD WOULD WORK, UM, AND, AND KIND OF WHAT THE OUTCOMES WOULD BE FROM, UM, FROM THE DIFFERENT ELEMENTS IN IT.
BUT, UM, THAT IS WHERE THE HOMELESS FUNDING CURRENTLY IS ENVISIONED TO BE, AS I UNDERSTAND IT FROM COUNCIL, FROM IT DOESN'T COME FROM HOT IS CORRECT.
IT WOULD BE A VOLUNTARY TAX AT THE HOTEL YEARS WOULD PUT ON THEMSELVES.
SO, SO MY OTHER QUESTION NOT TO DO WITH THE, THE 2019 2% INCREASE.
UM, AND SO WE'VE HAD, SO DID IT, DID IT HAPPEN ALREADY AND HOW MUCH MONEY HAS BEEN, UH, ABLE TO BE, TO BE PUT, UH, I DON'T KNOW, IN A SAVINGS ACCOUNT OF WHEREVER FOR, FOR USE TO IN THE BUILDING AND THE EXPANSION.
UM, SO WE HAD SOME MONTHS THAT WERE PRE COVID AND THEN WE'VE GOT COVID MONTHS.
AND SO JUST KIND OF AN IDEA OF ON A YEAR ABOUT HOW MUCH MONEY WOULD, WOULD, WOULD BE GOTTEN FOR THAT.
AND HOW DOES IT COMPARE TO THE ACTUAL COST OF THE EXPANSION? SURE.
IT'S UM, AND WE'LL CERTAINLY PROVIDE SOME MORE DETAIL AND THAT IT IS ALSO IN OUR BUDGET DOCUMENT.
UM, I DON'T HAVE THE NUMBER OFF THE TOP OF MY HEAD.
UH, WE DID START COLLECTING IT IN AUGUST AS, UM, AS SOON AS, AS SOON AS WE WERE ALL THE LEGAL HOOPS WERE WHEN WE HAD, WERE GONE THROUGH.
UM, AND, AND IT DOES GO DIRECTLY TO OUR CONVENTION CENTER CAPITAL FUND.
UM, AND SO THAT'S WHERE ALL THE INFORMATION CAN BE FOUND ABOUT IT.
UM, BUT WE'LL, WE'LL FOLLOW UP AND GET THAT, GET THAT FUNDING OVER TO YOU, COMMISSIONER
[01:10:01]
LEVINE, THANKS FOR PUTTING THE TIME AND THAT PRESENTATION TOGETHER.UM, I WANT TO REVISIT THAT HOMELESSNESS THING.
SO JUST TO BE CLEAR, THERE'S BEEN $0 TOWARDS HOMELESSNESS YET ON THIS.
AND THEY DON'T HAVE TO CREATE IT.
I'M JUST REMEMBERING LIKE WHEN PROP B WAS PASSED, THAT WAS PART OF THE BIG PROMISE WAS AWESOME.
I WAS GONNA GO TO LIVE MUSIC AND HOMELESSNESS, AND THEY WERE GOING TO BUILD A HOMELESS HOTEL OR SOMETHING ABOVE THE CONVENTION CENTER.
AND THERE'S NONE OF THAT HAPPENING NOW.
UM, I, I NOT FAMILIAR WITH THE HOMELESS HOTEL ABOVE THE CONVENTION CENTER.
UM, BUT IT, YOU ARE CORRECT THAT IT IS THE HOTELIERS THAT HAVE TO DECIDE AND COME TOGETHER.
I BELIEVE 60% OF THE HOTELIERS IN THE AREA HAVE TO HAVE TO AGREE TO THE TAX OR TO THE CREATION OF THE TPA SORTA IS WAITING ON THEM.
AND THAT CAPITAL FUND YOU'LL TELL US HOW MUCH IS IN THERE AT SOME POINT YOU ALSO HAVE AN OPERATING FUND YOU MENTIONED, AND YOU'LL TELL US HOW MUCH IS IN THERE AT SOME POINT.
UM, YES, YOU HAVE IT IN THE BACKUP.
SO WHAT WAS THE, WHAT SPECIFICALLY ABOUT THE OPERATING FUNDS, WHICH MONEY IS IN THERE AND THAT MONEY COMES FROM LIKE REVENUE FROM THE CONVENTION CENTER.
SO IT'S REVENUE FROM THE CONVENTION CENTER AND IT'S ALSO HOTEL OCCUPANCY TAX.
SO HOW MUCH MONEY IS IN THERE? SO OUR, THE RESERVE REQUIREMENT THAT WE HAVE OUR OPERATING RESERVE, WHICH I THINK SPEAKS TO, UM, COMMISSIONER TEMPLETON'S QUESTIONS, I BELIEVE WAS SOMEWHERE AROUND 20, 22, IS WHAT WE MAINTAIN AS OUR OPERATING RESERVE.
UM, YEAH, SO IT'S ABOUT FOR THE FY 22 APPROVED BUDGET, OUR OPERATING AND CAPITAL RESERVE REQUIREMENT, UM, WHICH IS SEPARATE FROM THE CAPITAL FUND IS 22 MILLION.
SO IT'S ABOUT OUR OPERATING RESERVE REQUIREMENT IS ABOUT 17 LITTLE 17.7 MILLION OR SO.
AND YOU ALL JUST TRANSFER MONEY OUT OF THERE ONCE YOU'RE NOPE.
SO IN THE EVENTS, SUCH AS THE PANDEMIC, WHEN WE NEED TO UTILIZE THE RESERVES, JUST AS GOOD FINANCIAL SOUND PRACTICES, AS MOST DEPARTMENTS AND ORGANIZATIONS YOU'LL FIND DO AS WELL, YOU THINK THAT THE INDUSTRY HAS CHANGED AT EIGHT SINCE THE PANDEMIC, IN TERMS OF CONVENTIONS, OR HAVE YOU HAD ANY MANY THIS YEAR? HOW'S IT GOING? OH, DO YOU WANT TO SPEAK TO THAT? I CAN CERTAINLY SPEAK TO THAT.
UM, I THINK THAT THERE'S CERTAINLY BEEN SOME CHANGE TO THE CONVENTION CENTER, UH, TO THE CONVENTION INDUSTRY.
I THINK THAT, UM, WE ARE, UH, THERE, THE, THE INDUSTRY, THERE ARE MANY, MANY STUDIES THAT ARE BEING CONDUCTED, UH, AND, UM, THE DATA THAT WE'RE GETTING BACK, YOU KNOW, PRIOR TO THE DELTA VARIANT WAS, WAS VERY, VERY GOOD.
UM, IT SEEMED AS THOUGH THE DEMAND FOR, UM, BUSINESS TRAVEL AND THE DEMAND FOR PEOPLE TO ATTEND IN-PERSON MEETINGS AGAIN, WAS, WAS VERY HIGH.
I CAN PROVIDE SOME OF THAT DATA TO YOU, UM, YOU KNOW, AFTER THIS.
UM, AND THEN THE DELTA VARIANT HIT, AND I THINK PEOPLE TOOK US A SLIGHT PAUSE.
UM, BUT THEN WHAT WE'RE BEGINNING TO SEE IN SOME OF THOSE NEW STUDIES MOVING FORWARD WITH THE INCREASED VACCINATIONS IS THAT THAT CONSUMER CONFIDENCE IS COMING BACK AGAIN.
UM, I CAN TELL YOU THAT WE'VE BEEN OPERATING EVENTS, UM, SINCE, UH, APRIL AT PALMER EVENT CENTER AND SINCE MAY AT THE CONVENTION CENTER AND, UH, OVERWHELMINGLY THE MAJORITY OF THE EVENTS THAT WE HAVE HAD IN PERSON, UM, HAVE EXCEEDED THE EXPECTATIONS OF WHAT THE, THE NEW EXPECTATIONS OF, OF WHAT OUR CUSTOMERS THOUGHT THEIR ATTENDANCE WOULD BE, UM, WHICH IS A VERY POSITIVE SIGN AS WELL.
UM, I'VE ALSO ATTENDED SOME EVENTS OUT OF TOWN AS THAT WERE INDUSTRY RELATED EVENTS OVER THE LAST FEW MONTHS.
AND THEY'RE THERE, THE ATTENDANCE SEEMS TO BE VERY WELL, UM, THERE AS WELL.
SO WE'RE HAPPY TO FOLLOW UP WITH YOU AFTER THIS TO KIND OF SHARE WITH YOU, UM, SEVERAL INDUSTRY REPORTS THAT ARE HAPPENING.
AND THERE'S ALSO SOME INFORMATION THAT WAS PROVIDED IN THE BACK-UP, UM, RELATED TO OVERALL, UM, DEMAND.
AND THEN, UH, THE NUMBER OF EVENTS, THE LEADS THAT WE'RE SEEING IN VISIT AUSTIN, THE NUMBER OF LEADS THAT THEY, THAT THEY ARE SEEING PER MONTH, UM, IS BACK TO ABOUT 90% OF, OR 96% OF WHAT WE WERE RECEIVING PRE PANDEMIC.
UM, SO THAT'S ALSO ALSO VERY ENCOURAGING AS WELL, UM, THAT THE NUMBER OF LEADS THAT ARE STARTING TO COME IN FOR FUTURE YEARS.
UM, SO I, I THINK THAT, UM, YOU KNOW, THERE THERE'S A GOOD POSSIBILITY FOR A LONG TIME THAT HYBRID EVENTS WILL BE, UM, OR THAT VIRTUAL EVENTS WILL BE PART OF A CONVENTION EXPERIENCE.
UM, BUT I DON'T FEEL THAT IT WILL EVER TAKE THE PLACE OF IN-PERSON MEETINGS.
UM, AND, BUT WE'RE HAPPY TO PROVIDE YOU SOME ADDITIONAL INFORMATION.
UM, I'LL TELL YOU WHAT, LET'S GO AHEAD.
THANK YOU SO MUCH FOR THAT PRESENTATION.
[01:15:01]
US WHAT PERCENTAGE OF ALL TOURISM IN AUSTIN ARE ATTENDEES TO EVENTS AT THE CONVENTION CENTER? THAT IS, UM, CAN YOU REPEAT THE QUESTION? YES.CAN YOU TELL ME WHAT PERCENTAGE? I THINK IN 2018, THERE WERE ABOUT 24, 20 5 MILLION TOURISTS, TOURISTS WHO CHANGE AUSTIN, HOW MANY OF THOSE TOURISTS, HOW MANY OF THEM ATTEND EVENTS AT THE CONVENTION CENTER? WHAT'S THE PERCENTAGE OF THAT 24 MILLION? THAT'S A GREAT QUESTION.
UM, WE CAN LOOK INTO, UH, GETTING YOU SOME DETAILED INFORMATION FOR THAT VISIT AUSTIN, UM, WOULD PROBABLY HAVE SOME REALLY GOOD INFORMATION, UM, AND WE CAN GO BACK AND LOOK AT OUR ATTENDANCE NUMBERS BY EVENT.
UM, I THINK I KNOW THE NUMBER, I THINK IT'S 2%, I DON'T BELIEVE THAT THAT'S REALLY, UM, UH, UH, AN, AN ACCURATE OR FAIR ASSESSMENT OF, OF THAT PARTICULAR STATISTIC.
WE'VE HEARD THAT, THAT STATISTIC PREVIOUSLY.
UM, AND TO BE HONEST WITH YOU, I FEEL AS THOUGH, UM, IT, IT JUST DOESN'T, IT DOESN'T CLEARLY ARTICULATE WHAT, UH, WHAT THE BUSINESS NEED FOR A CONVENTION CENTER IS.
UM, THERE'S, THERE'S A FEW OTHER STATISTICS THAT WE CAN PROVIDE TO YOU.
UM, ONE THING THAT I'D LIKE TO SAY IS THAT THE CONVENTION CENTER AND CONVENTION BUSINESS HAS A VERY IMPORTANT NEED AND THAT NEED IS TO FILL THE SUNDAY THROUGH THURSDAY BUSINESS.
UM, AND SO YOU'VE GOT A, WHATEVER THE NUMBER IS THAT YOU SAID 24 MILLION VISITORS THAT COME IN TO THE AUSTIN IN A YEAR, THERE'S LEISURE, TRAVEL THERE'S BUSINESS TRAVEL, AND THEY WEREN'T COMING.
THEY WORK TOGETHER HAND IN HAND, THE CONVENTION CENTER INTENTIONALLY, UM, YOU KNOW, TRIES TO BRING BUSINESS IN THAT IS MIDWEEK BUSINESS, UM, WHERE THE HOTELS WERE FULL.
IT DRIVES UP THE RATE OF THE HOTELS, UH, THAT THE HOTELS CAN CHARGE DURING THE WEEK.
AND THEN IT LEAVES THE WEEKENDS AVAILABLE FOR LEISURE TRAVEL FOR THOSE OTHER, UM, EVENTS THAT ARE HAPPENING WITHIN AUSTIN, THAT WE DON'T NECESSARILY WANT TO COMPETE WITH.
UM, WE WANT TO WORK IN TANDEM WITH, UM, AND ADDITIONALLY, UM, THERE'S, THERE'S STATISTICS THAT SAY THAT BUSINESS TRAVELERS SPEND MORE MONEY THAN LEISURE TRAVEL.
UM, AND SO IT'S, IT'S, UM, IT'S ABOUT THE PEOPLE, THE VISITORS THAT COME INTO AUSTIN TO ATTEND A CONVENTION, BUT IT'S THE FACT THAT THEY MAY FINISH ON A THURSDAY AND DECIDE TO EXTEND THEIR WEEKEND TO A SUNDAY AND SPEND THE REST OF THE TIME HERE ON LEISURE AND SPENDING THEIR DOLLARS.
ADDITIONALLY, BEYOND THAT, THERE'S A LOT OF STATISTICS THAT CAN NOT BE, UM, EASILY QUANTIFIABLE OR PULLED TOGETHER BASED ON THE HABITS OF WHAT OUR, OF WHAT OUR CONVENTION ATTENDEES ARE.
SO WHAT I'M SAYING IS THAT, UM, THERE'S, THERE'S A LOT OF DIFFERENT STATISTICS THAT CAN BE PROVIDED TO YOU THAT CAN HELP GIVE AN OVERALL UNDERSTANDING OF THE ECONOMIC IMPACT THAT THE CONVENTION, THE CONVENTION CENTERS HAVE ON THE ACTUAL BUSINESS AND VISIT AUSTIN SAYS THAT THEY TURNED DOWN THE BANDS EVERY YEAR DUE TO THE LACK OF SPACE AT THE EXISTING CONVENTION CENTER.
WHAT ARE THE SPECIFIC EVENTS THAT WE HAVE TURNED DOWN AND FOR WHAT DATES ARE THEY REQUESTING? SO WE, UM, HISTORICALLY, UM, TOO, WE DON'T, WE DON'T PROVIDE THE DETAILED INFORMATION, UM, FOR COMPETITIVE REASONS OF WHAT THE ACTUAL EVENT IS AND THE DATE IS, BUT WE DO TRACK, UM, WE DO TRACK THE BUSINESS THAT IS LOST, THE REASON WHY IT WAS LOST.
AND, UH, WE HAVE DATA AND STATISTICS FOR THE, THAT WE PROVIDED TO YOU EARLIER TODAY, AS FAR AS PERCENTAGE OF EVENTS THAT THEY GET TURNED DOWN ON A MONTHLY BASIS.
UM, AND SO WHERE WE PROVIDED YOU ALL OF THE INFORMATION THAT WE FEEL AS A, WE CAN PRIDE THAT THIS TOP.
AND ONE LAST QUESTION, UH, HOW MUCH IN TOTAL FUNDS DOES THE CONVENTION CENTER HAVE? OH, NO, NO, NO.
I THINK MIKE, YOU ALREADY ASKED THAT WHAT IS THE EXPANSION SCENARIO PREFERRED BY COUNCIL WAS 1.3 BILLION IN CAPITAL COSTS ALONE, EXCLUDING THE ANNUAL INTEREST AND OPERATING COSTS.
WHAT WILL THE TOTAL COST OF EXPANSION WITH INTEREST PLUS THE ANNUAL COST TO OPERATE THE EXPANDED EXPANDED CONVENTION CENTER B AND HOW WILL THE CITY PAY FOR THIS, WITH THE HOTEL TAXES ALONE? SURE.
SO, UM, THAT'S A GREAT QUESTION.
UM, WHEN WE HAVE A LONGER ANSWER, BUT I'LL JUST SORT OF SUMMARIZE, UM, SO AS YOU ALL MAY OR MAY NOT BE AWARE, UM, WE WERE, UH, ATTEMPTING TO EXPAND TO THE WEST.
WE WERE IN NEGOTIATIONS WITH THE PROPERTY OWNERS DIRECTLY TO THE WEST OF THE CONVENTION CENTER IN APRIL.
IT WAS A MUTUAL AGREEMENT TO END THOSE NEGOTIATIONS.
[01:20:01]
IN THAT TIME, WE HAVE ACTUALLY TAKEN THE OPPORTUNITY TO REIMAGINE WHAT THE CONVENTION CENTER EXPANSION LOOKS LIKE WITHIN KIND OF OUR ONLY REMAINING OPTION, WHICH IS TO REDEVELOP WITHIN OUR EXISTING FOOTPRINT.UM, THE GOOD NEWS WITH THAT IS WE WERE ABLE TO TAKE A, TAKE A TIMEOUT AND FIGURE OUT KIND OF WHAT WE CAN FIT ON THE SITE.
WHAT MAKES SENSE AND KIND OF INCORPORATE SOME OF THE FURTHER DIRECTION THAT COUNCIL'S GIVEN US AS PART OF THAT WE ALSO RE-ENGAGED, UM, HVS WHO ASSISTED, UM, AND DEVELOPED OUR INITIAL ECONOMIC IMPACT AND MARKET VIABILITY STUDY FOR THE EXPANSION THAT WAS ORIGINALLY ENVISIONED WITH THE THREE PHASE TO THE WEST.
UM, SO WE ARE ACTUALLY LOOKING AT YES, A LARGER CONVENTION CENTER ON A SMALLER COMPACT FOOTPRINT, UM, THAT HAS CHANGED THE COST OF THE PROJECT.
UM, SO SCENARIO FIVE IN, IN SORT OF, AS IT WAS ENVISIONED IN THE UT STUDY IS NO LONGER A VIABLE OPTION FOR US, THE TAKEAWAYS AND THE OUTCOMES THAT COUNCIL DESIRED TO SEE FROM THAT, FROM, FROM THE OUTCOMES IN THE UT STUDY, WE ARE STILL INCORPORATING INTO THIS NEW DESIGN.
SO WE ARE STILL WORKING ON FINALIZING ALL OF THOSE COSTS.
UM, AND AS WE, AS TRISHA MENTIONED EARLIER, AS PART OF OUR PRESENTATION, THE FINANCIAL MODEL AS WELL, UM, YOU KNOW, A LOT OF IT WILL DEPEND ON THE TIMING.
THE MARKET HAS BEEN KIND OF CRAZY.
IT'S SLOWING DOWN A LITTLE BIT.
SO WE WON'T KNOW KIND OF ALL THE FINAL CONSTRUCTION COSTS UNTIL WE GET A LITTLE BIT FURTHER AND DESIGN.
UM, IF YOU WANT TO KIND OF THINK OF IT LIKE CAPITAL METRO RIGHT THERE, THEY KIND OF FIND NEW THINGS AS THEY'RE DOING THEIR DESIGN PROCESSES, THEY GET 30% DESIGN, 60% DESIGN, AND THEY'RE KIND OF UPDATING AS THEY GO.
UM, YOU KNOW, AS WITH REGARDS TO FINANCING IT SOLELY WITH THE, UM, HOTEL OCCUPANCY TAX FUNDS, UM, AS PART OF THE FINANCIAL MODEL, WE ARE EVALUATING ALL OF THE OPTIONS.
UM, YOU KNOW, COUNCIL HAS MADE IT VERY CLEAR THAT PUBLIC DOLLARS ARE NOT ALLOWABLE FOR THIS PROJECT.
WE HAVE OUR FINANCIAL ADVISORS, YOU KNOW, THEY'RE WORKING ON THEIR FINANCIAL MODEL, WE'RE PROVIDING INPUTS TO THAT.
WE'RE WORKING CLOSELY WITH THEM.
AND CERTAINLY AS THE PROJECT PROGRESSES AND WE GET TO THE POINT OF DEBT ISSUANCE, THE RATING AGENCIES WILL TAKE A VERY, VERY STRONG LOOK AT WHAT WE'RE AND WHAT WE'RE PROPOSING TO DO.
UM, YOU KNOW, THIS IS NOT LIKE YOUR TYPICAL, UM, PROJECT THAT WOULD BE FINANCED BY THE FULL FAITH AND CREDIT OF THE CITY.
IT IS DEPENDENT ON THE HOTEL OCCUPANCY TAX AND THEREFORE IT'S SLIGHTLY RISKIER FOR BOND HOLDERS.
SO THERE IS A MANY LAYERS OF SCRUTINY AND REVIEW, AND WE'RE WORKING VERY CLOSELY WITH ALL OF THOSE GROUPS, UM, IN ORDER TO ENSURE THAT WHAT WE ARE BRINGING FORTH, UM, IS VIABLE, WE CAN'T AFFORD.
UM, AND WE WON'T SO TO SPEAK IN A COUPLE OF YEARS.
UM, SO, YOU KNOW, WE, AND CERTAINLY, I, YOU KNOW, I WANT TO SAY, I APPRECIATE THE ATTENTION TO THAT FINANCIAL PIECE.
IT'S, IT'S OBVIOUSLY THE MOST CRITICAL, I WOULD SAY AT THIS POINT, UM, IS TO ENSURE THAT WE CAN AFFORD IT.
THE GOOD NEWS IS HOTEL TAXES COMING BACK.
UM, SOME OF THE PRELIMINARY PROJECTIONS, WE WERE ALREADY BEATING OUR REVISED PROJECTIONS FOR THIS CURRENT FISCAL YEAR, UM, THE REVISED TO THE REVISED.
AND SO NOW WE'VE GOT ANOTHER REVISION THAT WE'LL WE'LL KNOW MORE, UM, IN A COUPLE OF WEEKS WHEN WE HIT YEAR END.
UM, BUT WE'RE ALREADY TRENDING BETTER THAN WE THOUGHT WE WERE GOING TO DO TO DO, WHICH IS FANTASTIC.
AND WE'VE GOT SOME MORE ANALYSIS THAT WE'RE WORKING ON TO KIND OF PERHAPS REVISE OUR PROJECTIONS FOR THE NEAR TERM AS WELL.
UM, BUT AS TRISHA MENTIONED, YOU KNOW, A BIG PIECE OF THAT IS THAT MIDWEEK BUSINESS.
AND THAT'S WHY WE'RE NOT NECESSARILY SEEING A HUGE REBOUND IN THE DELTA SPIKE IS CERTAINLY HAVING AN EFFECT ON THAT.
UM, BUT UNTIL WE GET THAT MIDWEEK BUSINESS BACK IN, WE'RE NOT GOING TO SEE THIS FULL RECOVERY OF HOTEL OCCUPANCY TAX.
SO I THINK I GIVE YOU A LOT MORE THAN YOU ASKED FOR, BUT HOPEFULLY THAT WAS HOW WE WILL, WE WOULD JUST APPRECIATE SOME TRANSPARENCY.
WHEN WILL THE DEBT ON THE ORIGINAL CONVENTION CENTER BE RETIRED? UM, CURRENT PROJECTIONS, I BELIEVE HAVE IT AT 2029, BUT WE ARE EVALUATING OUR ABILITY TO PAY IT OFF SOONER DEBATE OFF SOONER.
I HAVE A QUESTION YOU MENTIONED MIXED USE AND THE NEW DEVELOPMENT AND JUST KIND OF MORE RETAIL SIZE.
WHAT IS, WHAT DOES MIXED USE, UH, REFERENCING SPECIFICALLY IN THE REDESIGN REDEVELOPMENT? SO, UM, IT'S A LITTLE TBD.
UM, WE DON'T KNOW EXACTLY WHAT THE FINAL DESIGN IS GOING TO LOOK LIKE.
EVERYTHING TO THIS POINT IS WE'RE CALLING THIS LATEST VERSION OF PROOF OF CONCEPT.
UM, AND THAT'S WHAT THE DESIGN PROCESS WILL, WILL ALLOW US TO KIND OF FLESH OUT AND, AND REALLY UNDERSTAND, UM, AND KIND OF LOOK AT WHAT THE MARKET'S LOOKING FOR, BUT, YOU KNOW, WE ANTICIPATE RETAIL, UM, PERHAPS SOME BARS AND RESTAURANTS, UM, KIND OF WHATEVER, TO HELP SORT OF ACTIVATE THE CORRIDOR DOWN THERE AND KIND OF, YOU KNOW, JUST HELP BRING EASTERN WEST TOGETHER IN, IN THAT SPACE.
I WANTED TO, I WAS TRYING TO CLARIFY A LITTLE BIT, CAUSE THAT'S WHAT I'M ASKING FOR IS CURRENTLY IT'S A LITTLE BIT OF A DEAD SPOT, ESPECIALLY WHEN THERE'S NOT A CONVENTION AND IT'D BE REALLY NICE TO HAVE IT BE A LITTLE MORE WALKABLE.
THAT'S ABSOLUTELY THE INTENTION.
THAT'S WHAT, THAT'S WHAT WE WANT AS WELL.
OTHER COMMISSIONERS, ANY OF OUR COMMISSIONERS THAT ARE ONLINE
[01:25:01]
THIS EVENING, I'M GIVING YOU THE CHANCE I SEE NAMES AND FACES.I KIND OF HAVE ONE MORE QUESTION.
IT'S ACTUALLY FOR A COMMISSIONER'S LEVINE AND THE TEMPLETON Y'ALL HAVE VERY DIRECTED QUESTIONS IN THIS CASE.
I HAVE, THIS HAS BEEN A LITTLE MORE FERVENT THAN A LOT OF THINGS THAT COME TO OUR, UH, MEETINGS.
WHAT'S UP, I GUESS I'M NOT, I'M NOT FOLLOWING WHAT YOU'RE DOING HERE.
I MEAN, YOU'VE MENTIONED TRANSPARENCY AND THAT'S FANTASTIC.
WE HAVE A HUNDRED ORGANIZATIONS THAT COME TO US THAT WE'RE NOT ASKING FOR THAT FROM THEM.
SO, SO WHAT'S THE STORY HERE? WELL, MAYBE WE SHOULD, I'M AGAIN, NOT ARGUING AGAINST, SO LET'S DIRECT COMMENTS TO THE CHAIR.
UM, SO YOU WANT ME TO ASK YOU THIS QUESTION? WELL, I GUESS I DON'T, I'M, I'M, I'M TRYING TO UNDERSTAND WHAT'S HAPPENING.
SO COMMISSIONER, WOULD YOU LIKE TO RECEIVE UP TO ME AND, UH, MR. CHAIRMAN IN THE, UH, SPIRIT OF TRANSPARENCY? UM, I THINK THAT SINCE THE WESTWARD EXPANSION AS WAS SOLD TO US AND SOLD TO THE VOTERS AND PROP B IS NO LONGER VIABLE AND HAS BEEN TAKEN OFF THE BOARD, I THINK THAT IF WE'RE GOING TO START OVER ON A NEW PLAN ENTIRELY, THEN WE OUGHT TO EXPLORE OTHER OPTIONS FOR CONVENTION CENTER EXPANSION AS WELL, WHICH MIGHT BE NOT AT THE CURRENT SITE.
MAYBE THERE'S OTHER VIABLE THINGS THAT ARE MORE USEFUL TO OUR, UH, ECONOMY AND TO OUR, UH, TOURISM AND TO OUR CONVENTION INDUSTRY.
THAT WOULD BE MORE HELPFUL THAN THE EXPANSION THAT THEY'RE PROPOSING RIGHT NOW.
WELL, I JUST HAVE CONCERNS BECAUSE OF COVID AND YOU KNOW, WHAT THE WORLD LOOKS LIKE AFTER THE PANDEMIC.
I MEAN THE CONVENTION CENTER INDUSTRY IS SORT OF A DYING INDUSTRY.
I MEAN, TRADE TRADE SHOWS GO WELL, OKAY.
I MEAN, I'M JUST, I'VE JUST READ SEVERAL THINGS AND I CAN'T OFF THE TOP OF MY HEAD, TELL YOU EXACTLY WHERE I READ IT, BUT I'VE JUST READ THAT PEOPLE LIKED DOING THE VIRTUAL MEETINGS.
I MEAN, IT DOESN'T TAKE THE PLACE OF BEING A PERSON.
I LOVE BEING WITH ALL OF YOU HERE TONIGHT, BUT I JUST THINK IT'S A DIFFERENT WORLD WE'RE IN NOW.
AND, UM, I JUST, I DON'T THINK THERE'S AS MANY TRADE SHOWS AND WE HAVE, YOU KNOW, THE FAIRMONT HOTEL THAT CAN PROVIDE, YOU KNOW, COMPANIES, LOTS OF SPACE AND THEY CAN PROVIDE THE FOOD AND THEY CAN PROVIDE THE LIQUOR AT A CONVENTION CENTER.
COMPANIES HAVE TO BRING ALL THAT IN CORRECT.
I I'D LIKE TO, UM, JUST SAY A FEW WORDS.
UM, MOST OF OUR CONVENTIONS, THE WAY THAT THE CONVENTIONS INDUSTRY WORKS IS THAT THEY SELL BOOTHS ON THE TRADE SHOW FLOOR AND COMPANIES COME IN AND THOSE BOOTH SALES DRIVE THE ACTUAL MONEY FOR CONVENTIONS TO BE ABLE TO PUT ON THEIR EVENT, WHICH THEN BRINGS CONTINUING EDUCATION CLASSES.
IT BRINGS COMMUNITY NETWORKING TONS, AND TONS OF SALES ACTUALLY HAPPEN.
UM, NEW DEMOS OF PRODUCTS, THINGS OF THAT NATURE.
UM, SO, SO THE CONVENTION INDUSTRY PROVIDES THAT UNIQUE NICHE NICHE THAT HOTELS DON'T HAVE THAT EXP THAT EXHIBIT HALL SPACE THAT IS NEEDED IS WHAT IS REALLY DRIVING IN THE INDUSTRY.
THE HOTELS HAVE MEETING ROOM SPACE AND SOME BALLROOM SPACE, BUT THEY'RE, UH, BUT THEY LACK THAT LARGE EXHIBIT HALL SPACE.
UM, SO YOU'RE NOT GOING TO HAVE AN EVENT THAT COMES TO TOWN THAT WANTS TO HAVE, UM, ALERT THEIR LARGE CONVENTION CONVENTION OR SELL THEIR TRADE SHOW BOOTHS TO, UM, AND, AND HAVE FOUR OR FIVE DIFFERENT HOTELS IN THE MIX.
FILL THOSE BALLROOMS WITH THOSE TRADE SHOWS.
UM, THEY WANT TO HAVE THAT UNDER ONE ROOF.
AND THAT'S KIND OF THE PIECE CASE OF WHAT A CONVENTION CENTER IS.
UH, THE MAIN CON THE MAIN COMPETITIVE PIECE FOR US IS OUR EXHIBIT HALL SPACE AND THEN THE SUPPLEMENTAL BALLROOM AND MEETING ROOM SPACES WITH THAT.
UM, THAT IS, THAT IS THE NATION.
THAT IS THE, THE NATURE OF CONVENTIONS.
THAT IS THE NATURE OF THE MIDWEEK BUSINESS THAT, THAT, THAT THE BUSINESS THAT IS DONE ON THE SHOW FLOOR, THE BUSINESS THAT IS, UM, THAT IS DONE AND THE NETWORKING AND THE DINNERS THAT HAPPEN OFFSITE LATER IN THE EVENING.
UM, AND ADDITIONALLY, THE CONVENTION CENTER, YOU DON'T BRING IN YOUR OWN FOOD AND BEVERAGE.
YOU DON'T BRING IN YOUR OWN BAR AND YOUR OWN ALCOHOL CELLS.
WE HAVE A CONTRACTOR WHO WORKS FOR THE CONVENTION CENTER ON OUR BEHALF.
UM, THEY PROVIDE ALL THE FOOD AND BEVERAGE AND ALL OF THE ALCOHOL SELLS, UM, FOR OUR EVENTS.
UM, AND SO I, I HOPE THAT THAT'S, THAT'S CLARIFYING IN A, IN A LITTLE BIT HELPFUL FOR YOU.
THAT DOES ADD THAT IS GOOD CLARIFICATION.
JUST TO FURTHER ANSWER YOUR CONCERNS THERE.
[01:30:01]
IF WE'RE GOING BACK TO THE DRAWING BOARD, WE OUGHT TO START BACK WAY FARTHER BACK.I THINK THAT THE OPTIONS THAT ARE PRESENTED TO US, UH, FOR, FROM 2015 AND A LOT HAS HAPPENED SINCE THEN, WE HAVE TENS OF THOUSANDS.
I BELIEVE MAYBE I'M WRONG OF NEW EXHIBIT SPACE AND SQUARE FOOTAGE OF HOTEL CONFERENCE SPACE.
UH, A MAJORITY OF THE SPACE HAS BEEN ADDED IN THE HOTELS IS MEETING SPACE AND SOME BALLROOM SPACE, BUT IT'S STILL MISSING THAT KEY COMPONENT OF IT, OF EXHIBIT HALL SPACE, WHICH A MAJORITY OF THE BUSINESS THAT WE TURNED DOWN FOR VISIT AUSTIN OR THAT VISIT AUSTIN TURNS DOWN IS BECAUSE WE HAVE A HOTEL CAPACITY TO MEET THE ROOM DEMAND.
WE DO NOT HAVE A CAPACITY TO MEET THE EXHIBIT HALL AND THE LARGE BALLROOM DEMAND.
AND THAT IS WHY THERE'S NEED FOR AN EXPANSION OF THE CONVENTION CENTER AND RESPECT.
ACTUALLY, THIS IS NOT FROM 2015 THAT, YOU KNOW, WE WALKED THROUGH, UM, VERY CAREFULLY.
WE THOUGHT, UM, YOU KNOW, THEY'VE THE, THE ORIGINAL IDEA FOR AN EXPANSION BEGAN IN 2015, AND THERE HAS BEEN MANY ITERATIONS THAT HAVE INCORPORATED THE NEW MIX OF MEETINGS THAT MIGHT NEED TO, YOU KNOW, THE MIX OF MEETING EXHIBIT HALL, BALLROOM SPACE.
WE'VE GONE THROUGH DESIGN ELEMENTS.
WE'VE WORKED WITH THE COMMUNITY, THE UT STUDY TOOK OVER A YEAR.
UM, SO IT, IT IS NOT THE WHILE THE IDEA MAY BE FROM ACTUALLY EVEN BEFORE 2015.
WHAT WE'RE TALKING ABOUT IS NOT A DESIGN THAT WAS DONE IN 2015.
I APPRECIATE THAT THE DESIGN WASN'T FROM 2015, I'M SORRY.
I DIDN'T MEAN TO SUGGEST THAT I JUST MEAN THIS IDEA IS FROM 2015.
I MEAN, I DON'T THINK THAT NEGATES ANYTHING THOUGH.
LIKE WHY DOES NOT IDEAS SIX YEARS OLD? SO THEREFORE IT'S INVALUABLE.
I'M NOT SUGGESTING THAT THE IDEA IS DONE.
I THINK THAT IT NEEDS TO BE LOOKED AT AGAIN.
I THINK THAT THINGS HAVE CHANGED IN THE LAST SIX YEARS.
HAVE THEY NOT? I MEAN, OUR GROWTH IS CRAZY.
OUR HOMELESS MAN, THAT'S CRAZY.
I MEAN, YOU PUT THEM IN A WEIRD POSITION OF DEFENDING SOMETHING.
I KNOW VERY LITTLE, I DON'T KNOW THEIR JOB, BUT THEY PRESENTED, YOU KNOW, TIMELINES WHERE THEY'VE BEEN UPDATING AND REVISING THIS FOR THE LAST FIVE YEARS.
AND I THINK THAT'S THE WAY IT'S DONE.
I MEAN, I'M, I'M CONFUSED WHY WE'RE KIND OF COMING IN AND TELLING THEM HOW TO DO THEIR JOB A LITTLE BIT.
I THINK THEY'RE DOING THEIR JOB VERY WELL.
I THINK THEIR JOB IS TO PUSH AND CREATE EXPANSION OF THE CONVENTION CENTER.
I'M NOT ARGUING WITH THEIR ABILITY TO DO THEIR JOB.
I THINK THAT THEY'RE VERY GOOD AT THEIR JOB.
I THINK OUR JOB IS TO ADVISE CITY COUNCIL, NOT THEM.
ANYBODY ELSE WHO HASN'T HAD A CHANCE TO ASK A QUESTION? ALRIGHTY.
I BELIEVE THAT THIS IS POSTED FOR ACTION TONIGHT.
AND, UH, SO IS THERE ANYBODY THAT HAS EMOTION? YES.
CHAIRMAN AUGUST BASED ON OUR DISCUSSION THIS EVENING, I WOULD LIKE TO MAKE A MOTION FOR THE DOWNTOWN COMMISSION TO DELIVER A RESOLUTION TO THE MAYOR AND CITY COUNCIL.
BE IT RESOLVED BY THE DOWNTOWN COMMISSION OF THE CITY OF AUSTIN BEFORE MOVING FORWARD WITH ANY ACTIONS RELATED TO THE EXPANSION OF AN AUSTIN CONVENTION CENTER, THE CITY MANAGER SHOULD PRESENT THE DOWNTOWN COMMISSION, THE CITY COUNCIL, AND ANY OTHER RELATED CITY COMMISSIONS WITH NEW FINANCING PLANS FOR THE AUSTIN CONVENTION CENTER EXPANSION.
THIS FINANCING PLAN SHOULD BE DETAILED, COMPREHENSIVE, AND PRESENTED TO THE PUBLIC COMMISSIONS AND COUNCIL AT LEAST FOUR MONTHS BEFORE ANY COUNCIL VOTE AUTHORIZING CONVENTION CENTER EXPANSION.
IN ADDITION, THE CITY MANAGERS SHOULD RESEARCH THE IMPACTS OF THE PANDEMIC ON THE LONGTERM SUSTAINABILITY OF THE CONVENTION INDUSTRY NATIONWIDE.
AND WHETHER INVESTING IN A CONVENTION CENTER EXPANSION IS ECONOMICALLY RESPONSIBLE.
DO I HAVE A SECOND? I'LL SECOND.
I'VE GOT A MOTION AND A SECOND.
IS THERE DISCUSSION ANYBODY ONLINE? OKAY.
UH, THEN I'LL CALL THE QUESTION.
UM, ALL IN FAVOR OF THE RESOLUTION IS PRESENTED THIS EVENING, SAY AYE.
CAN WE CAN, I'M SORRY, JUST FOR US IN TAKING THE, CAN WE HAVE PEOPLE IT'S HARD TO SEE YOUR MOUTH.
ALL IN FAVOR OF THE RESOLUTION PRESENTED, PLEASE RAISE YOUR HANDS.
IS THERE ANYBODY ONLINE OR DO WE NOT HAVE, UH, COMMISSIONER ROBINSON? YOU ARE A VOTING MEMBER OF THE COMMISSION.
WOULD YOU TURN YOUR SCREEN ON POLICE OR, OR TELL US COMMISSIONER ROBINSON.
[01:35:01]
YEAH.I'M TRYING TO GET IT ON A SCREEN.
SO YOU'RE VOTING FOR THE RESOLUTION.
SO I'VE GOT FOUR, UM, FOUR IN FAVOR AND THREE OPPOSED THE MOTION CARRIES I'M THE CHAIR.
UM, I WOULD PREFER THAT THIS ITEM GO TO THE WORKING GROUP WORKED TO BE FORMED.
UM, SO, BUT I'M NOT OPPOSED TO THE, TO THE MOTION ITSELF BECAUSE I THINK THERE'S SOME VALID QUESTIONS THAT NEED TO BE ASKED.
SO WITH THAT IN MIND, I WOULD VOTE FOR THE RESOLUTION, BUT I WOULD LIKE TO SEE IT ADDRESSED IN THE WORKING GROUP.
IF THE WORKING GROUP IS CREATED, MR. CHAIRMAN, WOULD YOU ENTERTAIN A MOTION THEN FOR WORKING GROUP THE FLOOR? IS IT, AH, AND THEN I MOVED THAT WE CREATE A WORKING, WE FORM A WORKING GROUP TO GIVE CONTINUED OVERSIGHT AND DISCUSSION TO THE CONVENTION, PROPOSED CONVENTION CENTER EXPANSION AND WHATEVER FORM IT MAY TAKE.
AND IF IT'S APPROPRIATE, WHICH IT MAY NOT BE FROM THIS SEAT, UH, WOULD IT BE APPROPRIATE THEN TO INCLUDE IN THE MOTION THAT WE INCLUDE OTHER MEMBERS OF OTHER COMMISSIONS IN IT, UH, WORK IN GROUPS, WE CAN'T DRINK, BUT WE CAN INCLUDE ANY NON-VOTING MEMBERS THAT ARE ON THIS COMMISSION.
WELL, IN THAT CASE THEN I, UH, I MOVED THAT WE CREATE A WORKING GROUP FROM THE MEMBERS OF THIS COMMISSION VOTING AND NON-VOTING, UM, AND I LEAVE IT AT YOUR DISCRETION AS TO THE SIZE OF THAT WORKING GROUP, BUT THE SCOPE TO BE INCLUDING THE POTENTIAL EXPANSION, DESIGN AND FINANCES OF ANY CONVENTION CENTER EXPANSION.
AND BEFORE I CALL A SECOND QUESTION TO STAFF, JUST TO MAKE SURE THE NUMBER OF VOTING COMMISSIONERS THAT ARE ALLOWED TO BE ON THE WORKING GROUP AT ANY ONE TIME IS FOUR.
SO THERE CAN ONLY BE FOUR VOTING MEMBERS.
AND THEN AS MANY NON VOTING MEMBERS, WE'VE GOT, UM, SEVEN NON VOTING MEMBERS WHO POTENTIALLY COULD PARTICIPATE.
SO I HAVE A MOTION ON THE FLOOR.
I SECOND, I HAVE A MOTION AND A SECOND ALL IN FAVOR OF CREATING A WORKING GROUP ON THE CONVENTION CENTER EXPANSION, PLEASE SAY, HI, YOU WANT TO DO THE HANDS? OKAY.
OPPOSED SEEING NONE, THE MOTION CARRIES.
AND WITH THAT, UM, I WOULD CALL FOR VOLUNTEERS, I BELIEVE.
UH, WE, I, THE LADY I'VE OUT OF VOLUNTEER, YOU GOT TO DO IT, I GOTTA DO IT.
UH, AND YOU GOT TO DO IT AND I BELIEVE COMMISSIONER
SO THERE'S SPACE FOR ONE MORE VOTING MEMBER.
YOU SHIFT SOMEBODY WHO WOULD LIKE TO PARTICIPATE AGAIN.
SO WE HAVE FOUR VOTING MEMBERS AND THEN ANY NON VOTING MEMBERS WHO WANT TO PARTICIPATE WE'LL OF COURSE SEND AN EMAIL OUT TO ALL OF THE COMMISSION TO SEE IF THERE ARE ANY OTHER NON VOTING MEMBERS THAT WANT TO, UH, WORK ON THIS PERSPECTIVELY.
UM, FOLKS, THANK YOU FOR YOUR TIME TONIGHT.
THANK YOU FOR PUTTING EVERYTHING TOGETHER AND COMING BACK AND PRESENTING AGAIN TO US.
AND, UH, I KNOW THE WORKING GROUP WILL APPRECIATE YOUR INVOLVEMENT MOVING FORWARD.
WE VERY MUCH LOOK FORWARD TO WORKING WITH YOU.
AND CAN I JUST SAY SOMETHING REAL QUICK, MR. CHAIR? YES.
UH, THERE IS NO ANIMOSITY TOWARDS Y'ALL OR WHAT YOU'RE DOING.
I THINK YOU ARE VERY GOOD AT YOUR JOBS.
UM, AND I APPRECIATE YOU BRINGING THIS INFORMATION AND I KNOW YOU HAVE A JOB TO DO, AND I'VE ENJOYED LOOKING FORWARD TO DOING IT WITH Y'ALL.
WE REALLY LOOK FORWARD TO WORKING WITH THE WORKING GROUP AS WELL.
[3. Old Business – Items from representatives of collaborating commissions including nonvoting members:]
SO WE'RE GOING TO MOVE, UH, TO, UM, OLD BUSINESS AND THE UPDATES FOR, FROM COMMISSIONERS.AND, UH, I'M GOING TO START WITH COMMISSIONER RAMIREZ BECAUSE AS SHE'S GOT TO ZIP OUT ON US, I'M NOT QUITE USED
[01:40:01]
TO THIS IN-PERSON STUFF ANYMORE.AND I HAVE SOMEWHERE TO BE, I APOLOGIZE.
UM, UM, AS FAR AS THE PUBLIC SAFETY COMMISSION, UM, THIS PAST MONTH, WHICH WAS OUR MEETING WAS LAST WEEK, UM, WE GOT AN UPDATE FROM, UM, THE AUSTIN FIRE DEPARTMENT AND ALSO A WILDFIRE READINESS UPDATE.
UM, THOSE ARE ALWAYS REALLY GREAT AND INFORMATIVE.
AND IF YOU GUYS, THE WILDFIRE READINESS UPDATE IN PARTICULAR WAS REALLY GREAT.
UM, IF YOU GUYS WANT TO CHECK LIKE TUNE INTO THE ARCHIVED, UM, RECORDING, IT WAS REALLY INFORMATIVE AND HELPFUL JUST TO SEE WHERE THE CITY IS WITH WITH THAT.
UM, WE ALSO HAD, UM, I THINK THE ITEM THAT TOOK UP THE MOST TIME IS WE, UM, DID A SURVEY OF ALL OF OUR PUBLIC SAFETY, UM, DIVISIONS, FIRE, EMS, AND POLICE JUST ON THEIR VACCINATION LEVELS, JUST KIND OF SURVEYS AND MASK PRACTICES.
UM, AND WE ANTICIPATE HAVING A RECOMMENDATION AT OUR, AS A FOLLOWUP AT OUR NEXT MEETING, UM, JUST SO THAT WE COULD GET A BETTER SENSE OF HOW THERE'S ANY WAY TO EQUALIZE, UM, SOME OF THE POLICIES THAT ARE HAPPENING, UM, ALONG ALL PUBLIC SAFETY DIVISIONS.
UM, AND THEN, UM, WE ALSO GOT AN UPDATE ON THE UPCOMING POLICE CHIEF HIRE, AND THAT WAS JUST, UH, A REALLY BRIEF UPDATE THAT THEY'RE EXPECTING TO HAVE, UM, SOMETHING READY FOR CITY COUNCIL MEETING ON SEPTEMBER 30TH, UM, FOR A VOTE.
SO WE SHOULD BE HEARING SOMETHING ON THAT FROM THE LAST THREE CANDIDATES THAT WERE LEFT, UM, AS FAR AS NEXT MONTH GOES, UM, IT'S GOING TO BE BUDGET BUDGET OBAMA.
WE'RE GOING TO BE REVIEWING ALL THE PUBLIC SAFETY BUDGETS THAT WERE APPROVED.
UM, GETTING A SENSE OF, UM, RE-IMAGINING PUBLIC SAFETY EFFORTS AND WHAT BUDGET ITEMS MADE IT INTO THE NEW FISCAL YEAR BUDGET.
THANK GOODNESS WE DON'T HAVE BUDGET AROMAS.
UM, SO YEAH, AND, UH, AND WE'RE ALSO, UM, IF WE HAVE THE TIME ALSO GOING TO GET A LEGISLATIVE UPDATE JUST, OH, AND AS FAR AS, UM, ADDITIONAL BUDGET STUFF, UM, WITH THE MOVEMENT OF, UM, POLICE, UM, FUNDS, WE WERE GOING TO GET A BRIEFING ON THE IMPACT TO THE NINE ONE ONE CALL CENTER AND THE CRIME LAB IN PARTICULAR THAT WERE MOVED BACK INTO, UM, APD FUNDS.
SO IT'S, IT'S, WE'RE GOING TO TALK ABOUT A LOT OF MONEY NEXT MONTH IF YOU GUYS WANT TO CHIME IN, BUT THAT'S PRETTY MUCH IT.
WE ALSO HAVE GONE TO HYBRID, UM, BUT PUBLIC COMMENT DOES HAVE TO BE IN PERSON.
SO IF ANYBODY WANTS TO CHIME IN OR COME SPEAK, THAT HAS TO HAPPEN IN PERSON MOVING FORWARD FOR BUDGET AROMA, THEY'LL ALL COME OUT.
THANK YOU VERY MUCH FOR BEING HERE THIS EVENING.
CAN WE ASK QUESTIONS OF THE PRESENTATION? I'M JUST WONDERING, UM, IT WAS JUST INTERESTING THAT CAME UP TODAY, UH, IN MY REGULAR JOB, THAT THE DIFFERENCE BETWEEN ENFORCEMENT OF THE NO CAMPING STATEWIDE BAN AND THE PHASING IN OF APD PROP B STUFF AND HOW THAT'S GOING TO WORK TOGETHER OR AGAINST EACH OTHER.
AND IF THEY GET ARRESTED BY A STATE TROOPER, DID THEY GO TO STATE JAIL OR DID THEY GO, IT'S FUNNY YOU SAY THAT BECAUSE AS YOU WERE TALKING ABOUT THAT JUST A LITTLE WHILE AGO, I WAS GOING TO COME ASK YOU IF YOU KNEW ANYTHING ABOUT HOW THE STATE, UH, THE ENFORCEMENT OF THE STATE CAMPING BAN WAS GOING TO GO.
I DON'T HAVE AN ANSWER TO THAT, BUT I CAN DEFINITELY, UM, SEE IF I CAN GET SOME, SOME INFORMATION TO JOINT WORKING GROUP HERE FOR THIS.
IT'S UM, UM, I MEAN, FROM MY HANDLE ON IT, IT'S, IT'S A JOB NOBODY WANTS TO DO.
UM, THE ENFORCEMENT PART OF IT.
UM, I MEAN, AND THIS IS NOT SPEAKING AS A PUBLIC SAFETY COMMISSION, BUT AS ME, IT'S, IT'S A LITTLE CRUEL, UM, TO PUNISH SOMEONE FOR NOT HAVING A HOME, BUT, UM, THAT'S NEITHER HERE NOR THERE, SO, YES.
UM, WE DO NOT HAVE COMMISSIONER AND OUR ROBLEDO COMMISSIONER, WHETHER IT BE COMMISSIONER LUMON, COMMISSIONER TAYLOR, OR COMMISSIONER TAYLOR HERE.
UM, WE DO HAVE COMMISSIONER HAIM STAFF LIVE AND ONLINE COMMISSIONER REPORT FROM GOOD EVENING.
WELL, I SAY THANK YOU VERY MUCH TO STAFF FOR, UM, SENDING OUT THE COMMUNITY SURVEY TO ALL OF YOU.
UH, I THINK, UH, WE'VE BEEN TALKING ABOUT THE IMPORTANCE OF THIS WORKING GROUP.
THAT'S NOW BEEN ASSEMBLED AS WE'RE REDOING THE HISTORIC PRESERVATION PLAN FOR THE CITY.
[01:45:01]
WOULD ENCOURAGE MEMBERS NOT ONLY TO, UH, LOOK THROUGH AND TAKE THE SURVEY, BUT PLEASE CONSIDER DISTRIBUTING THIS AS WIDELY AS WE CAN.UM, AS IT PERTAINS TO THIS COMMISSION, THE, UM, MANY, MANY ASPECTS OF WHAT WE'LL BE WORKING ON PERTAIN TO DOWNTOWN, THE HISTORY THAT WE HAVE IN THE PAST, UH, CULTURAL CONNECTIONS OF ALL DIFFERENT KINDS FOR ALL DIFFERENT GROUPS.
UM, BUT ALSO THAT LEGACY IS SOMETHING THAT IS, AS I'VE DISCUSSED WITH THIS COMMISSION, UM, IT IT'S, IT'S FRAGILE AND IS UNDER THREAT.
AND THE MORE THAT WE CAN USE THIS, UH, AS AN OPPORTUNITY TO EXPAND UNDERSTANDING OF WHAT THESE RESOURCES ARE, BUT ALSO MAKE THIS NOT JUST A ONE-WAY STREET, THIS IS TRULY AN EXCHANGE.
SO, UM, PLEASE TAKE TIME TO AVAIL YOURSELF OF THIS AND TO CONNECT TO OTHERS, UH, AND ANY GROUPS THAT YOU'RE A PART OF TO REALLY, UH, TAKE THIS, THIS RATHER UNIQUE MOMENT FOR US TO TAKE STOCK OF WHERE WE ARE AND BE ABLE TO HAVE A, A VERY EXCITING OPPORTUNITY FOR THE NEW DIRECTION, UM, AS, AS WE'LL GO FORWARD WITH THE EXPANDED PLAN.
THANK YOU, COMMISSIONER, UH, COMMISSIONER KEATON, IF YOU HAVE SOME BRIEF COMMENTS TONIGHT ON YOUR COMMISSION, I AM SO SORRY, MY VIDEO.
I DON'T KNOW WHY IT'S NOT WORKING, BUT I'VE BEEN HEARING LISTENING THE WHOLE TIME.
UH, I WOULD LIKE TO SAY THAT DO NOT HAVE ANYTHING TO PRESENT.
UM, AS OF TODAY BEING THAT THE ARTS COMMISSIONER'S MEETING IS NEXT MONDAY.
SO UP ON MY RETURN, UM, NEXT MONTH I WILL BE SHARING IS FROM THE ARTS WITH YOU.
AND I HOPE THAT EVERYONE IS WELL AND THAT YOU'RE DOING GOOD WITH YOUR HEALTH.
WONDERFUL, THANK YOU VERY MUCH.
[4. Potential Future Agenda Items The Commission may discuss and identify future agenda items, topics, or presentations]
FUTURE POTENTIAL FUTURE ITEMS FROM THE COMMISSION, EDDIE STAFF UPDATES THIS EVENING.THERE ARE NO STEP UPDATES THIS EVENING.
UM, YOU GUYS GOOD TO SEE EVERYBODY TECHNOLOGY TECHNOLOGY IS NOT ALWAYS OUR FRIEND, BUT WE'LL GET THERE.
IT'S GOOD TO BE BACK IN SOME FORM IN PERSON.
UH, AS YOU KNOW, I'VE, I'VE, UM, COMPLAINED ABOUT REMOTE MEETINGS AND IT'S, IT'S SO MUCH BETTER IN PERSON AND IT'S GOOD TO SEE YOU ALL AND THANK YOU FOR ALL THE WORK YOU DO HERE AND ONLINE.
UH, AND HOPEFULLY WE'LL HAVE MORE MEMBERS IN ATTENDANCE AT THE NEXT MEETING.
UM, WITH THAT, UH, I WILL CALL FOR A MOTION TO ADJOURN.
I HAVE A MOTION TO ADJOURN FROM COMMISSIONER ROZENBERG.
DO I HAVE A SECOND COMMISSIONER GOMEZ ALL IN FAVOR? AYE.
SEPTEMBER SEVEN 15TH, AND I CALL THE MEETING ADJOURNED.