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[00:00:03]

THIS IS, UH, IT'S NOW 6 0 3, 6:03 PM.

[CALL TO ORDER AND ROLL CALL]

UH, WE'RE CALLING THE REGULAR MI DESIGN COMMISSION MEETING TO ORDER.

I'M SORRY.

OH, MAY 23RD.

UM, OR AT, UH, THE PERMITTING AND DEVELOPMENT CENTER ROOM 1406 AT 63 10 WILAMENA DELCO DRIVE.

OKAY.

SWITCHING, THE FIRST MEETING IS CHAIR, SO I'LL LOOK AT JORGE AND DAVID.

ALL RIGHT.

CHAIR, FORMER CHAIR, CAROL ASSISTANCE.

UM, ALL RIGHT.

UH, SO THE FIRST THING TO DO IS CALL ATTENDANCE.

UM, SO FORMER CHAIR, CAROL PRESENT COMMISSIONER SELENA'S COMMISSIONER FRANCO, UH, VICE CHAIR MINORS.

SORRY WAS LOUD.

UH, COMMISSIONER HANNO ROBLEDO AS COMMISSIONER TANIGUCHI PRESENT.

UM, I AM PRESENT, UH, COMMISSIONER ROLISON COMMISSIONER COLEMAN, PRESENT COMMISSIONER WATLEY, COMMISSIONER LOGINS.

OKAY, GREAT.

UM, IS THERE ANY PUBLIC COMMUNICATION FOR THIS MEETING TODAY? NO COLLINS.

OKAY.

UH, SO OUR FIRST ITEM

[1.a. Discussion and possible action relating to the Convention Center Expansion Plan, to be presented by Katy Zamesnik - Austin Convention Center Department.]

ONE, UH, NEW BUSINESS ITEM, ONE, A DISCUSSION AND POSSIBLE ACTION RELATING TO THE CONVENTION CENTER EXPANSION PLAN, UM, WITH A PRESENTATION BY KATE SEMANSKI OF THE AUSTIN CONVENTION CENTER DEPARTMENT TERRIFY ME.

YES.

AND OUR PRESENTERS COMING IN ONLINE.

AND YOU CAN GIVE HER JUST A COUPLE OF SECONDS.

THERE SHE IS.

YOU CAN SEE HER ON THE BIG SCREEN OVER HERE AS WELL.

OKAY.

THANK YOU, SIR.

UM, THE DIRECTOR OF THE AUSTIN CONVENTION CENTER, UH, TRISHA TEATRO, AND SHE'S GOING TO BE THE ONE PRIMARILY DOING THE PRESENTATION TODAY.

IT'S NICE TO MEET YOU ALL.

HEAR ME? CAN YOU ALL HEAR ME? YES.

THANK YOU.

GREAT, GOOD EVENING.

MY NAME IS TRISHA TAITRA.

I'M THE DIRECTOR OF THE AUSTIN CONVENTION CENTER AND I'M JOINED BY KATIE'S A MESMERIC THE CONVENTION CENTER'S CHIEF ADMINISTRATIVE OFFICER.

WE'RE HERE TO DISCUSS THE CONVENTION CENTER, REDEVELOPMENT AND EXPANSION PROJECT.

NEXT SLIDE, PLEASE.

TODAY'S BRIEFING IS GOING TO GO QUICKLY OVER THE HISTORY OF THE PROJECT AND A PROOF OF CONCEPT THAT WAS DEVELOPED FOLLOWING THE END OF NEGOTIATIONS WITH THE PROPERTY OWNERS TO THE WEST, SOME PROJECT CONSIDERATIONS, A BRIEF DISCUSSION ON THE FINANCING AND THE HILTON BOND INDENTURE, AND THEN WE WILL CLOSE WITH NEXT STEPS.

NEXT SLIDE, PLEASE.

THE IDEA OF AN EXPANSION HAS BEEN CONTEMPLATED FOR NEARLY A DECADE AND FIRST FORMALLY DECLARED IN 2015 WITH THE PUBLICATION OF THE LONG RANGE MASTER PLAN.

FOLLOWING THIS SEVERAL REPORTS AND STUDIES WERE CONDUCTED THROUGH 2019.

WHEN COUNCIL FORMALLY APPROVED AN ORDINANCE RAISING THE MUNICIPAL HOTEL OCCUPANCY TAX, OR THE HOT BY 2% IN SUPPORT OF AN EXPANSION FOLLOWING COUNCIL'S APPROVAL OF THE 2% HOT INCREASE CONVENTION CENTER STAFF WORKED TOWARDS A MASTER PLAN UPDATE AND AN ECONOMIC IMPACT STUDY TO CONFIRM THE VIABILITY OF AN EXPANSION.

THESE REPORTS WERE RELEASED IN AUGUST OF 2020 AND WERE PRESENTED TO THE COUNCIL IN SEPTEMBER OF THAT YEAR.

BEFORE I CONTINUE, WE DID WANT TO ACKNOWLEDGE A PROCESS THAT WAS NOT INCLUDED ON THIS TIMELINE.

THAT IS THE APPROVAL FOR THAT, THAT THE CITY MANAGER GAVE TO ENTER INTO NEGOTIATIONS WITH THE PROPERTY OWNERS TO THE WEST, WHICH COUNCIL GAVE IN NOVEMBER OF 2020.

STAFF BEGAN THESE NEGOTIATIONS IN EARNEST FOLLOWING COUNCIL'S APPROVAL, UNFORTUNATELY AS COMMUNICATED TO COUNCIL IN APRIL OF 2021, DESPITE THE BEST EFFORTS OF ALL PARTIES, THE FINAL PROPOSAL WAS UNABLE TO DELIVER THE PROGRAMMATIC REQUIREMENT FOR THE CONVENTION CENTER WITHIN THE PROPERTIES CURRENTLY UNDER THE DEVELOPER TEAMS CONTROL, AND

[00:05:01]

IT EXCEEDED ANTICIPATED COSTS AS A RESULT OF THIS DECISION, THE CONVENTION CENTER BEGAN DUE DILIGENCE EFFORTS ON THE REMAINING OPTIONS FOR EXPANSION EVALUATING EXPANSION WITHIN THE CURRENT SITE OF THE CONVENTION CENTER.

AND WE DETERMINED THAT WE COULD NOT ONLY DELIVER A MORE EFFICIENT FACILITY ON A SMALLER FOOTPRINT, BUT WE WILL ALSO REALIZE THE GOALS OF THE UT STUDY, THE CONVENTION CENTER, MASTER PLAN UPDATE, AND THE PALM DISTRICT RESOLUTION, THE CENTER WITH THE ASSISTANCE OF OUR CONSULTANT TEAMS DEVELOP THE PROOF OF CONCEPT THAT BEARS OUT THIS GOAL, WHICH WE'LL TALK ABOUT SHORTLY.

NEXT SLIDE, PLEASE, IN ORDER TO MINIMIZE PROJECT DELAYS AND BUDGET IMPACTS TO THE REDEVELOPMENT AND EXPANSION PROJECT WHILE THE FINANCING OPTIONS WERE FINALIZED, STAFF TOOK FORTH IN RCA ON JUNE 10TH, 2021, UH, ON THE COUNCIL AGENDA THAT REQUESTED THAT COUNCIL APPROVE THE USE OF THE CONSTRUCTION MANAGER AT RISK METHOD OF CONTRACTING AS THE PROJECT DELIVERY METHOD FOR THE CONVENTION CENTER EXPANSION IN TANDEM TO THIS ITEM, COUNCIL PASSED A RESOLUTION WHICH PROVIDED FURTHER DIRECTION FOR ELEMENTS TO INCLUDE IN THE REQUEST FOR CALL QUALIFICATIONS, RFQ FOR ARCHITECTURAL AND ENGINEERING SERVICES.

AND IT DIRECTS THAT REPRESENTATIVES FROM THE CENTER OF SUSTAINABLE DEVELOPMENT AT THE UNIVERSITY OF TEXAS AT AUSTIN, THE PALM DISTRICT, THE DOWNTOWN AUSTIN ALLIANCE, AND THE WATERLOO GREENWAY BE INCLUDED IN THE EVALUATION PANEL FOR THE RFQ.

IN ADDITION TO CITY STAFF, WE HAVE BEEN WORKING DILIGENTLY TO INCORPORATE THE DIRECTION AND THE FINAL RFQ, WHICH WILL, SHOULD BE READY FOR RELEASE SHORTLY.

NEXT SLIDE PLEASE.

SO THIS BRINGS US TO THE PROJECT ITSELF.

AS I NOTED PREVIOUSLY, THE CONVENTION CENTER WILL BE LARGER AND A MORE EFFICIENT FACILITY ON A SMALLER FOOTPRINT.

THE OVERALL PROJECT WILL DELIVER AN ACTIVE COMMUNITY FRIENDLY EVENT FACILITY THAT ENHANCES THE CULTURALLY RICH FABRIC OF THE PALM DISTRICT AND REMOVES THE BARRIER THAT IS CURRENTLY THE CONVENTION CENTER FROM THIS CORNER OF DOWNTOWN.

THE CHART ON THE RIGHT SHOWS, THE CURRENT RENTABLE SQUARE FOOTAGE OF THE CONVENTION CENTER, THE TARGET SQUARE FOOTAGES THAT WERE CALLED FOR IN THE MASTER PLAN UPDATE AND THE MINIMUM THAT WE WILL ACHIEVE UNDER THESE NEW CONSTRAINTS COMBINED, WE ARE NEARLY DOUBLING THE AVAILABLE RENTABLE SPACE AND EVEN GOING BEYOND THE MASTER PLAN TARGET A LARGE PART OF THIS INCREASE IS ATTRIBUTABLE TO THE MEETING SPACE ALLOCATIONS AND THE TRENDS AMONG THE EVENTS, UH, THAT WE HAVE COMMUNICATED WITH DURING THE COVID PANDEMIC.

UM, OUR CLIENTS ARE NOW CALLING FOR A HIGHER AMOUNT OF MEETING SPACE ALONG WITH MORE FLEXIBLE SPACES.

THE REVISED SQUARE FOOTAGE TARGETS STILL ALLOWS US TO REMAIN COMPETITIVE WITH OUR PEER CONVENTION CENTERS AND COMPETE FOR THE NEXT TIER OF BUSINESS.

OUR CONSULTANT TEAM HAS TAKEN A PROOF OF CONCEPT AND WE'VE UPDATED OUR ECONOMIC IMPACT AND MARKET ANALYSIS TO DETERMINE IF THE PROJECT IS STILL FEASIBLE AND VIABLE.

AND THE ANSWER IS A RESOUNDING YES, THE ADDITIONAL ECONOMIC IMPACT FOR THE EXPANDED CONVENTION CENTER IS ESTIMATED TO BE AT OVER $280 MILLION A YEAR.

NEXT SLIDE PLEASE.

AND NEXT TIME, NEXT SLIDE PLEASE.

SO WHAT COULD THIS PROJECT LOOK LIKE? THIS SLIDE SHOWS OUR CURRENT FACILITY, AS IT STANDS TODAY.

THIS VIEW IS ORIENTED EAST TO WEST AND CLEARLY SHOWS HOW THE CONVENTION CENTER CREATES A BARRIER BETWEEN THE EAST AND WEST.

IT LIMITS THE GROUND LEVEL PUBLIC INTERACTION.

IT'S LOWER IN DENSITY FROM THE PROPERTIES THAT ARE SURROUNDING IT, AND IT HAS ZERO GREEN SPACE AND ABOVE ALL IT IS INADEQUATE FOR THE EVENT, DEMAND GROWTH OF THE CONVENTION CENTER.

NEXT SLIDE PLEASE.

AND WHAT WE WILL, WHAT WE'RE UNVEILING FOR YOU TODAY IS AN ACTUAL PROOF OF CONCEPT.

HERE IS WHAT WE COULD BUILD ON OUR SITE.

I WANT TO STRESS, THIS IS NOT A DESIGN OF THE BUILDING, BUT IT IS INTENDED TO PROVIDE A STARTING POINT FOR A THOUGHTFUL DESIGN PROCESS AND ALLOWS US TO CONTINUE OUR REMAINING DUE DILIGENCE EFFORTS.

THE RED AND YELLOW BOXES CONTAIN THE CONVENTION CENTER

[00:10:01]

FUNCTIONS AS WELL AS MANY OF THE RETAIL AND COMMUNITY SPACES FACILITY WILL BE LARGER THAN ARE ON, WILL BE LARGER THAN WHAT'S ON OUR CURRENT SITE, BUT ON A SMALLER FOOTPRINT, THE TEAL BLOCK AT THE SOUTHERN END OF THE PROPERTY IS INTENDED TO BE A P THREE DEVELOPMENT, SOMETHING THAT WE HAVE HEARD CLEARLY.

UM, AND THAT IS DESIRED BY THE COUNCIL AND THE COMMUNITY IN THIS PROOF OF CONCEPT, THE EXHIBIT HALL SPACES ARE COMPLETELY UNDERGROUND SPANNING THE FULL LENGTH OF THE SITE.

WE'RE ALSO MOVING THE LOADING DOCKS UNDERGROUND ALONG THE RED RIVER, ALLEVIATING THE TRUCK TRAFFIC ON THAT STREET.

AND THIS WILL WORK IN TANDEM WITH OUR NEARLY COMPLETE MARSHALING YARD OUT BY THE AIRPORT.

THIS CONCEPT ALLOWS US TO REOPEN SECOND AND THIRD STREETS TO MULTIMODAL TRAFFIC, HELPING TO REMOVE THE BARRIER BETWEEN EAST AND WEST THAT CURRENTLY EXISTS.

FINALLY, THE PROOF OF CONCEPT INTEGRATES OUR REDEVELOPMENT PROJECT WITH THE OTHER INVESTMENTS OCCURRING IN DOWNTOWN, INCLUDING PROJECT CONNECT AND THE VISION OF THE PALM DISTRICT.

THE FULL PROOF OF CONCEPT WILL BE INCLUDED WITH THE RFQ.

WE ALSO WANT TO NOTE THAT THE PROOF OF CONCEPT ENVISIONS A PHASED APPROACH TO THE EXPANSION PROJECT, BUT WE ARE ALSO LOOKING AT A ONE PHASE PROJECT AND WE WILL ULTIMATELY MAKE THIS DECISION DURING THE DESIGN PROCESS.

NEXT SLIDE, PLEASE.

THIS SLIDE HELPS TO VISUALIZE THE POTENTIAL PUBLIC BENEFITS THAT WILL, THAT WILL BE REALIZED IN THE REDEVELOPMENT AND EXPANSION OF THE CONVENTION CENTER.

OUR GOAL IS TO BRING LOCAL COMMUNITY BACK AND WE'RE CERTAINLY HAVING, WE CERTAINLY HAVE THE OPPORTUNITY TO DO THAT HERE.

AS YOU CAN SEE, WE'VE INCORPORATED SIGNIFICANT GREEN SPACE ALONG RED RIVER FOR THE LOCAL COMMUNITY.

WE'VE ALSO INCLUDED COMMUNITY SPACE AND AN ART GALLERY AT STREET LEVEL THAT WOULD SHOWCASE LOCAL ARTWORK.

THE RED BOXES THAT RUN THROUGHOUT THE SITE ARE INTENDED TO BE RETAIL OPPORTUNITIES, AND WE WOULD WORK CLOSELY WITH THE COMMUNITY TO IMAGINE WHAT RETAIL WOULD BE APPROPRIATE HERE.

WE'VE SET ASIDE SPACE FOR PROJECT CONNECT ALONG TRINITY, AND WE ENVISIONED THAT THIS WILL BE A STATION SERVING THE BLUE LINE THAT CONNECTS DIRECTLY INTO THE CONVENTION CENTER.

AND AGAIN, YOU CAN SEE THAT THE STREET GRID HAS BEEN REOPENED FOR MULTIMODAL TRAFFIC.

NEXT SLIDE, PLEASE.

ONE OF OUR OUTSTANDING QUESTIONS RELATED TO THIS PROJECT WAS THE FINANCING, OUR OUTSIDE FINANCIAL ADVISORS, OUR CONSULTANT TEAMS, AND OUR INTERNAL CORPORATE FINANCE TEAM TO FINALIZE THE FUNDING MODEL FOR THE PROJECT AND OPERATIONS PROJECT CONSTRUCTION AND OPERATIONS REMAIN FULLY FUNDED THROUGH THE CONVENTION CENTERS, ALLOCATION OF HOTEL OCCUPANCY TAX, THE 2% EXPANSION HOT AND THE CONVENTION CENTER REVENUES.

THIS MODEL INCLUDES THE 15% ALLOCATION OF THE 2% EXPANSION HOT FOR BOTH THE LIFE MUSIC FUND AND HISTORIC PRESERVATION, AND DOES NOT CURRENTLY ANTICIPATE ANY FORCED REDUCTION IN STAFFING.

THE IMPORTANT THING TO NOTE HERE IS THAT THE PROJECT IS GOING TO DELIVER PUBLIC BENEFITS WITHOUT PUBLIC MONEY.

RATHER, IT'S GOING TO BE FINANCED FROM THE VISITORS THAT COME AND CONVENTION ATTENDEES WHO STAY IN AUSTIN AREA HOTELS.

NEXT SLIDE, PLEASE.

LAST YEAR IT WAS BROUGHT TO THE CITY'S ATTENTION THAT THE TEMPORARY CLOSURE OF THE CONVENTION CENTER FOR THE REDEVELOPMENT AND EXPANSION PROJECT COULD TRIGGER A DEFAULT CLAUSE IN THE BOND AND THE BONDS THAT ARE CURRENTLY OUTSTANDING AT THE CITY OWNED HILTON HOTEL.

THE HOTEL IS MANAGED BY AUSTIN CONVENTION ENTERPRISES ALSO KNOWN AS ACE AND THE EIGHTH BOARD PRESIDENT HAS BEEN WORKING DILIGENTLY WITH THE BOND HOLDERS TO PURSUE A RESOLUTION TO THIS POTENTIAL ISSUE.

ONCE THE RFQ OR ONCE THE, UH, ONCE A RESOLUTION IS REACHED WITH THE BOND HOLDERS, THEN WE WILL BE CLEARED TO RELEASE THE RFQ.

NEXT SLIDE PLEASE.

SO NEXT STEPS FIRST, WE WILL RELEASE THE RFQ FOR ARCHITECTURE AND DOES SERVICES A FEW MONTHS AFTER THAT, WE WILL RELEASE AN RFP FOR THE CONSTRUCTION SERVICES.

THESE CONTRACTS WILL GO BACK TO COUNCIL APPROXIMATELY

[00:15:01]

SIX MONTHS AFTER ISSUANCE AND ONCE COUNCIL APPROVES THESE CONTRACTS, THEN THE DESIGN PROCESS WOULD BEGIN IN EARNEST.

WE'RE HAPPY TO COME BACK TO THIS GROUP AT ANY POINT DURING THE PROCESS TO UPDATE YOU ON OUR WORK AND ENGAGE WITH YOU AS WE ARE DESIGNING THIS NEW FACILITY.

NEXT SLIDE PLEASE, IN CLOSING, I WANT TO THANK YOU FOR YOUR ATTENTION TODAY AND WITH THAT, WE'RE HAPPY TO TAKE ANY QUESTIONS.

I HAVE A QUESTION.

SO THANK YOU FOR THE PRESENTATION.

UM, WHEN YOU'RE CALCULATING YOUR EXHIBIT SPACE, YOUR BALLROOM SPACE, DO YOU LOOK AT THE ADJACENT HOTELS WHO THAT THEY HAVE LARGE ROOMS ALSO THAT COULD ACCOMMODATE SOME OF THAT.

IT MIGHT TAKE SOME STRESS OFF OF YOUR PROGRAM.

IS THAT SOMETHING THAT YOU ALL LOOK AT OR TRY TO COORDINATE? I THANK YOU FOR THE QUESTION.

YES, WE DO WORK WITH ALL OF OUR HOTEL PARTNERS, AS WE ARE BIDDING ON CITYWIDE BUSINESS.

A LOT OF THE CONVENTIONS THAT WE CURRENTLY HAVE MUST USE THE HOTELS AS ANCILLARY SPACE DUE TO THE SIZE OF OUR ACTUAL CONVENTION CENTER.

CURRENTLY, IDEALLY THOUGH OUR CUSTOMERS PREFER TO HAVE ALL OF THEIR SPACE UNDERNEATH ONE ROOF.

UM, BUT WE DO, UM, WE DO ALSO USE A CAMPUS APPROACH APPROACH AND WE ARE TAKING THAT INTO CONSIDERATION AS WE CALCULATED THE SQUARE FOOTAGE THAT WE BELIEVE IS NECESSARY TO MOVE US TO THE NEXT YEAR OF BUSINESS.

OH, THAT'S A GOOD ANSWER.

THANK YOU.

GOOD ANSWER.

THANK YOU.

ANY OTHER QUESTIONS? THANK YOU, CHAIR.

THANK YOU FOR THE PRESENTATION, APPROXIMATELY HOW LONG WOULD THE CONVENTION CENTER BE CLOSED? UM, SO WE WILL, UH, CLEARLY, UH, GET A MORE ACCURATE TIMELINE AS WE MOVE THROUGH THE DESIGN PHASE AND WE GET OUR, OUR DESIGN TEAM AND THE CONSTRUCTION TEAM ON BOARD.

UH, OUR CONSULTANTS THAT WE HAVE BEEN WORKING WITH, UH, WE ARE CURRENTLY ESTIMATING APPROXIMATELY A FOUR YEAR TIMEFRAME, BUT THAT WILL BE, UH, YOU KNOW, VETTED OUT AS WE WORK ON THE DESIGN AND CONSTRUCTION PLANNING FOR THE PROJECT.

MY SECOND QUESTION IS HOW DOES THIS NEW SITE PLAN INTERACT WITH THE EXPANSION SPECIFICALLY DEALING WITH 18 WHEELER AND TRAFFIC ASSOCIATED WITH THE CONVENTION CENTER? YEAH, THAT'S GREAT QUESTION.

SO, UM, IN ANTICIPATION OF OUR EXPANDED CONVENTION CENTER, UM, WE PURCHASED 44 ACRES AND WE BUILT A MARSHALING YARD AND WAREHOUSE OUT NEAR THE AIRPORT.

UM, AND SO WE DID THAT TO ELIMINATE THE PROBLEM THAT WE HAD CURRENTLY THAT EXISTED ONCE THE FAIRMONT HOTEL WENT IN, WHICH WAS OUR TRUCK TRAFFIC ON RED RIVER.

UM, SO WE ACTUALLY HAVE THAT, UH, THAT LAND AND WE WILL BE OPENING THAT FACILITY, UH, BY THE, BY THE END OF JUNE.

UM, AND SO WE WILL STAGE ALL OF OUR TRUCKS AND 18 WHEELERS OUT AT THAT LOCATION.

AND THEN WE WILL HAVE, UM, THE OP THROUGH OUR OPERATIONS.

WE WILL THEN BE ABLE TO HAVE THE TRUCKS COME IN THROUGH TO DESIGNATED ROUTES.

UM, AND WE ARE WORKING WITH, UM, THE CAPTAIN STITCH AND THERE, AND OUR CITY FOLKS IN AUSTIN TRANSPORTATION.

UM, WE'RE COORDINATING WITH ALL OF THEM VERY CLOSELY ON NOT ONLY, UH, THE PROJECT, BUT THE CAPITAL METRO PROJECT.

AND, YOU KNOW, WITH THE INTENT OF OPENING SECOND AND THIRD STREETS, YOU KNOW, WE'LL BE WORKING VERY CLOSELY WITH THEM TO DETERMINE WHAT THE BEST, UH, USE OF THOSE STREETS ARE.

UM, BUT OUR, OUR VEHICLES WILL BE ABLE TO COME INTO DOWNTOWN IN A STAGED WAY.

UH, AND WE ENVISION THEM COMING UP THIRD STREET AND, AND GOING UNDERGROUND IN A KIND OF RAMPED APPROACH, UH, TO GET OFF OF THE STREET AND UNDERGROUND AND INTO OUR SERVICE YARD AS QUICKLY AS POSSIBLE.

SO THERE HAS BEEN A LOT OF PLANNING AND COORDINATION, UM, JUST IN THIS PRELIMINARY DESIGN, KNOWING THAT TRACK THE TRAFFIC THAT OUR, UH, CONVENTION CENTER BRINGS HAS BEEN PROBLEMATIC FOR THE DOWNTOWN AREA, UH, FOR SOME TIME, ANY OTHER QUESTIONS FROM THE COMMISSIONERS COMMISSIONER MINORS, UH, I CAN YIELD AND COME BACK, IT'S GOING TO COME BACK TO ME OR WHO WAS THAT? THAT WAS THE LIST I HAVE MY HAND RAISED.

I DON'T KNOW IF YOU CAN SEE THAT.

SO COMMISSIONER, UH, PROBABLY, OH, NO.

FOR WHENEVER YOU WANT.

I DON'T KNOW IF YOU SEE HANDS RAISED.

I DIDN'T.

YEAH.

OH, OKAY.

THANK YOU.

HOST SWAMP.

UM, COULD WE PLEASE LOOK AT THE SLIDE OF THE PROPOSED USES WITH SECOND AND THIRD STREET OPENING FOR MOMENT? CORRECT.

UM, WOULD YOU LIKE TO LOOK AT THE AREA AERIAL VIEW THAT WAS

[00:20:01]

LOOKING DOWN? YEAH.

THE PLAN VIEW, WHERE YOU HAVE POTENTIAL ASSIGNMENTS OF OUR PROGRAMMING OF HOW THE BUILDING WOULD WORK? I BELIEVE THAT'S PAGE NINE.

YEAH.

SO I, I CAN'T REALLY READ IT, BUT I GUESS WHAT I WAS WONDERING IS ON SECOND AND THIRD STREET, WHEN YOU REFERRED TO MULTIMODAL VERBAL, ARE YOU INCLUDING CARS AND CARS? SO THAT WILL BE SOMETHING THAT WE WILL WORK VERY CLOSELY WITH AUSTIN TRANSPORTATION ON, UM, OPENING THE ROADS BACK UP IS CERTAINLY NOT, UH, THE CONVENTION CENTER TEAM IS NOT THE EXPERT IN HOW THOSE ROADS SHOULD BE USED.

UM, I, UH, SO WE'VE YET TO GET TO KIND OF THAT CONVERSATION PIECE, BUT WE WERE CERTAINLY WHEN I SAID MULTIMODAL, UH, AT A VERY MINIMUM, IT'S GOING TO BE BIKE TRAFFIC, PEDESTRIAN TRAFFIC.

UM, AND I THINK IT WILL BE YET TO BE DETERMINED NOW WHETHER CARS WILL ACTUALLY BE UTILIZED ON THOSE TWO ROADS.

UM, I THINK THIRD STREET POTENTIALLY HAS THE OPPORTUNITY FOR THAT, BUT, UM, SECOND STREET BECAUSE OF WALLER CREEK, UM, I'M NOT, I'M, I'M NOT A TRANSPORTATION EXPERT, SO WE'LL, WE'LL WORK WITH THEM TO DETERMINE THE BEST USE FOR THOSE ROADS.

SO, SO JUST AS A COMMENT UNDERSTANDING YOU'RE NOT A TRANSPORTATION EXPERT, WE HAVEN'T HAD CARS DRIVING THROUGH THOSE STREETS AND CERTAINLY COULD BE LOVELY IF THAT CONTINUED TO BE THE CASE IN TERMS OF THIS REALLY BEING A WALKABLE SPACE WITH THE PROXIMITY TO WALLER CREEK AND AGAIN, MAKING THAT CONNECTION BETWEEN EAST AND WEST.

SO THANK YOU.

CARS COULD STILL ACCESS CESAR CHAVEZ AND FORTH AS THEY DO NOW.

CORRECT.

THANK YOU.

THAT'S THE QUESTION THE FIRST TIME, BUT YOU MENTIONED THAT GREENSCAPE ALONG RED RIVER STREET THERE.

I THINK THE CONNECTION THAT THEY HAVE GREENWAY WATERLOO GREENWAY IS VERY IMPORTANT.

UH, I KNOW THIS IS CONCEPTUAL PLAN RIGHT NOW, AND IT'S REALLY HARD EDGES AND ALL THAT KIND OF STUFF, BUT I'M HOPE WHEN, WHEN IT KIND OF EVOLVES OR DEVELOPS THAT WE KIND OF WORK SOME OF THAT GREEN SCAPES, YOU KNOW, THAT GREEN SCAPE INTO BUILDING PLAN AND HAVE A REALLY GOOD CONNECTION TO THE OLD WATER BAY, TO THE WATER, THE GREENWAY THAT'S GREAT FEEDBACK.

AND WE ALSO WERE WORKING WITH THE WATERLOO GREENWAY BECAUSE A PORTION OF THE ACTUAL, UM, CREEK DELTA PROJECT DOES, UM, DOES FRONT THE SIDE OF OUR FACILITY.

AND SO WE'RE WORKING WITH THEM TO FIND THE BEST WAY TO INTEGRATE, UH, THE, THE RIVER DOWN BELOW AND THEIR PROJECT WITH STREET LEVELS.

SO THAT IS CERTAINLY TOP OF MIND FOR US.

THANK YOU, CHAIRMAN.

THANK YOU.

UM, SO I HAVE A FEW QUESTIONS FOR YOU ALL, UM, THE, UH, BUILDINGS THAT YOU SHOWED, I BELIEVE THERE WERE IN YELLOW AND RED, THOSE ARE NOT CONNECTED AT ANY LEVEL THEY'D THEY WOULD BE TWO SEPARATE BUILDINGS WITH NO OVERHEAD CONNECTION.

SO THAT'S A GREAT, UH, THAT'S A GREAT OBSERVATION.

UM, AGAIN, YOU KNOW, JUST KEEPING IN MIND THAT THIS IS NOT A DESIGN OF THE FACILITY BY ANY MEANS, WE SIMPLY, UM, NEEDED TO LOOK AT IF WE COULD ACCOMPLISH EVERYTHING WE WANTED TO IN A VERTICALLY STACKED FACILITY.

UM, SO OUR, SO THE TWO BUILDINGS WILL BE CONNECTED VIA UNDERGROUND OR EXHIBIT HALL SPACE.

UM, THEY WILL BE CONNECTED AT, UH, THEY WON'T IN THIS, IN THE DIAGRAMS THAT YOU'VE SEEN YOU'RE RIGHT.

IT IS IT, THE TWO BUILDINGS ARE NOT CONNECTED AT STREET LEVEL.

HOWEVER, THERE WAS, OR THERE ARE TWO WALKWAYS THAT WOULD BE ENVISIONED TO CONNECT ON HIGHER FLOORS BETWEEN THE YELLOW AND THE RED FACILITY.

SO THE FACILITIES WILL BE CONNECTED AT MULTIPLE POINTS, BUT THE IDEA WOULD BE NOT TO HAVE THEM AT STREET LEVEL SO THAT WE CAN, AGAIN, OPEN UP THOSE TWO STREETS.

AND I KNOW YOU GIVE US OVERALL SQUARE FOOTAGE, BUT DOES THAT CREATE LESS CONTIGUOUS SPACE THAN WHAT WOULD INITIALLY BE PROPOSED? SO ORIGINALLY HALF, SORRY, WHAT WE HAVE RIGHT NOW, THE CONTIGUOUS SPACE THAT WE ACTUALLY NEED FOR OUR BUSINESS IS EXHIBIT HALL SPACE.

AND WE'RE ABLE TO ACHIEVE THAT BY PUTTING THE EXHIBIT HALLS COMPLETELY UNDERGROUND AND MAXIMIZING THAT SQUARE FOOTAGE.

OKAY.

AND YOU MENTIONED THAT WE ARE LIKELY COMPETITIVE WITH OTHER CITIES, UH, BUT IT COULD POTENTIALLY SET US UP FOR COMPETITION WITH THAT NEXT TIER, UM, WHAT WOULD BE CONSIDERED NEXT TIER? SURE.

SO WE COMPETE REGULARLY WITH HOUSTON AND SAN ANTONIO AND DALLAS, ALL, ALL THE CONVENTION CENTERS IN THE STATE HAVE SIGNIFICANTLY LARGER CONVENTION BUSINESS THAN WE DO.

UM, AND THEN IN THE CONVENTION INDUSTRY, I MEAN THERE'S 500,000 EVENTS A YEAR THAT HAPPENED ACROSS THE COUNTRY.

UM, AND SO WHAT WE'RE, WHAT WE'RE IDENTITY, WHAT WE'RE WANTING TO DO IS COMPETE FOR ADDITIONAL BUSINESS.

AND SO RIGHT NOW THE SIZE OF OUR FACILITY ALLOWS US TO ONLY HAVE ONE LARGE CONVENTION IN, UM, AT A TIME AND SOMETIMES TO KIND OF HAVE BUILDING CONVENTIONS.

THE IDEA

[00:25:01]

WOULD BE THAT WE COULD WITH A LARGER FACILITY THAT WE COULD LAYER OUR BUSINESS IN.

UM, SO THAT WE'RE REALLY MAXIMIZING THAT SUNDAY THROUGH THURSDAY CONVENTION BUSINESS.

AND WE MIGHT BE ABLE TO HOST, UM, YOU KNOW, UH, TWO MUCH LARGER CONVENTIONS, UH, ONE, YOU KNOW, CITY-WIDE OR SEVERAL SMALLER EVENTS AT ONE TIME.

SO WE'RE ACTUALLY, UM, NOT NECESSARILY LOOKING FOR ALL OF THE LARGEST CONVENTIONS THAT ARE HOSTED IN THE, UM, ACROSS THE COUNTRY.

UM, WE'RE REALLY LOOKING AT ACQUIRING A BIGGER CHUNK OF THE OVERALL BUSINESS THAT WE WOULD BE ABLE TO LAYER IN BY BEING A LARGER FACILITY.

OKAY.

UM, AND THEN WITH THE P THREE DEVELOPMENT THAT YOU HAVE IN TEAL, ARE THERE ANY CAPITOL VIEW CORRIDORS OR ANY RESTRICTIONS ON HEIGHT? UM, THERE ARE NO RESTRICTIONS ON HEIGHT FOR THIS PERSONAL LAND AND I MAY HAVE MISSED IT, BUT IS THERE, UM, A DESIRE WITHIN THE VISION TO OFFER AFFORDABLE HOUSING? UM, SO THIS THREE DEVELOPMENT WILL BE, UM, RUN BY REAL ESTATE SERVICES.

WE ENVISION IT BEING A LONG-TERM LAND LEASE, AND WE'VE YET TO KIND OF FIGURE OUT WHAT THAT HIGHEST AND BEST USE WOULD BE, UM, FOR, UH, THOSE TOWERS OR WHATEVER THIS T3 DEVELOPMENT ENDS UP BEING.

AND I'M SURE THAT, UM, WE WILL, UH, ENGAGE WITH THE COMMUNITY WITH THE COMMUNITY, OUR COMMISSIONS, AS WELL AS THE CITY COUNCIL, UH, IN DETERMINING WHAT, WHAT WILL GO INTO THOSE FACILITIES.

ALL RIGHT.

UM, YEAH, I SUPPOSE THAT IT IS EARLY, BUT MY RECOMMENDATION WOULD OBVIOUSLY BE TO LEVERAGE THE, UM, AFFORDABLE HOUSING, UH, FUNDING THAT WE HAVE AND UTILIZING IT IN THAT SPACE.

UM, SINCE WE'VE SEEN SO MANY PROJECTS AROUND THERE THAT ARE JUST PAYING INTO THE FEE AND LU AND NOT OFFERING HOUSING, UM, THE OTHER, UH, QUESTION I HAVE TOO, AND THIS ISN'T SOMETHING TO ANSWER RIGHT NOW, BUT, UM, JUST SOMETHING, YOU KNOW, I'VE BEEN PONDERING IS, UM, YOU KNOW, IS THERE A WAY THAT THE CITY CAN PROVIDE, UM, SUPPORTIVE HOUSING FOR MUSICIANS, UM, AND EVEN, UH, YOU KNOW, PRACTICE SPACE OR WHATEVER ELSE.

UM, SO, YOU KNOW, AGAIN, I DON'T EXPECT YOU TO HAVE ANY RESPONSE TO THAT NOW, BUT, UM, IF THERE'S A WAY TO INCORPORATE, UM, SOMETHING ALONG THOSE LINES, UH, THAT MAKES SENSE TO ME.

AND IT SEEMS LIKE A WIN-WIN.

I MEAN, THAT'S ALL I HAVE.

THAT'S GREAT FEEDBACK I CAN SHARE WITH YOU THAT THE MUSIC COMMUNITY IS CERTAINLY, UM, VERY IMPORTANT TO THE CULTURE OF AUSTIN AND WE, UH, OUR VISITORS CARE VERY MUCH ABOUT MUSIC.

SO WE ARE WORKING WITH THE MUSIC COMMISSION.

WE'RE, WE'RE, WE'RE WORKING WITH, UH, THE ARTS COMMISSION AS WELL, UM, TO SEE AS WE DESIGN THIS FACILITY, WHAT OPPORTUNITIES MIGHT BE AVAILABLE WITHIN OUR, UH, WITHIN WHAT WE'RE DESIGNING TO INCORPORATE THOSE INTO, UM, INTO THE CONVENTION CENTER OPPORTUNITIES FOR MORE MUSICIANS, MORE ART.

UM, AND SO I'M EXCITED TO GET THE DESIGN PROCESS STARTED SO THAT WE CAN REALLY KIND OF SEE WHAT WE MAY BE ABLE TO FLUSH OUT.

COMMISSIONER CARROLL.

THANK YOU.

UH, JUST ONE, ONE QUESTION, IF YOU THOUGHT ABOUT THIS, UH, WOULD THE REDEVELOPMENT, IS THERE A PLAN FOR THE EXISTING SKYBRIDGE THAT CONNECTS TO THE FAIRMOUNT? UH, SO THOSE ARE TWO ITEMS ON THE VERY TOP OF OUR LIST AS WELL, THE EXISTING BRIDGE FROM THE FAIRMONT AND THE EXISTING BRIDGE FROM THE HILTON.

UM, SO AGAIN, WE, WE HAVE A DESIRE TO WANT TO, UM, IN SOME CAPACITY, UH, INCORPORATE THOSE TWO BRIDGES INTO OUR, UM, EXISTING, UH, INTO OUR REDEVELOPED CONVENTION CENTER.

UH, IT WILL JUST, IT'S GONNA BE ONE OF THOSE CHALLENGES FOR THAT.

WE WANT THE DESIGN FOLKS, UH, AS THEY'RE DESIGNING THIS NEW FACILITY TO KEEP IN MIND AND SEE IF IT'S POSSIBLE TO INTEGRATE THEM BOTH.

I WOULD JUST SUGGEST THAT ESPECIALLY THE ONE AT THE FAIRMOUNT.

I MEAN, THE, ONE OF THE HILTON CROSSES LIGHT RAIL TRACKS, AND THAT'S A DIFFERENT ANIMAL IN MY OPINION, BUT THE ONE GOING TO THE FAIRMONT, I THINK ACTUALLY HURTS PEDESTRIAN ACTIVITY ON THE GROUND.

AND IT WOULD BE MY OPINION TO ELIMINATE THAT SKYBRIDGE MOVING FORWARD IF WE REALLY WANT TO ACTIVATE THESE SPACES AROUND THE CONVENTION CENTER.

SO THAT'S MY 2 CENTS.

THANK YOU.

I APPRECIATE THE FEEDBACK COMMISSIONER FRUITVILLE.

YEAH.

COULD YOU GO BACK TO THE, UH, TALKING MORE ABOUT THE P THREE DEVELOPMENT, KIND OF A LITTLE MORE DIVING IN MORE DETAILS AS FAR AS HOW YOU SEE THAT PLAYING ITSELF OUT? YOU MENTIONED LONG-TERM LANDLEASE, BUT ANY MORE DETAILS AS FAR AS WHAT THAT LONG-TERM LENDLEASE WOULD BE.

AND SPECIFICALLY, IF THERE IS ANY REVENUE GENERATION, I'M ASSUMING THERE'D BE SOME SORT OF REVENUE GENERATION, OTHERWISE THE CITY WOULDN'T BE LEASING THE LAND ON A LONG-TERM PERSPECTIVE, HOW DOES THAT FACTOR INTO THE, UM, FINANCING MECHANISM FOR THE CONVENTION CENTER? SURE.

SO, UM, THE, BECAUSE THE EXHIBIT HALLS ARE GOING TO BE UNDERNEATH THE P THREE DEVELOPMENT.

UH, SO WE'RE GOING TO BE UTILIZING THE, THE

[00:30:01]

GROUND, THE SPACE UNDERGROUND, THAT P THREE DEVELOPMENT, WHICH IS WHY IT WILL BE A LONG-TERM LANDLEASE, UM, FOR THE STREET LEVEL AND ABOVE, UH, WE'LL BE WORKING WITH REAL ESTATE SERVICES, AND IT WILL BE A SEPARATE PROCESS THAT WE WILL BE UTILIZING.

UM, WE DO KNOW THAT THERE WILL BE REVENUES FROM, UM, THAT LONG-TERM LANDLEASE, AND IT IS NOT CURRENTLY FACTORED INTO THE FINANCING MODEL FOR THIS PROJECT.

SO, SORRY.

OKAY.

YOU TOUCHED ON SOMETHING THERE IT'S IMPORTANT.

AND IT GOES INTO MY NEXT QUESTION.

SO THE TWO BUILDINGS YOU SAW, WE SEE IN GREEN, THE B3 DEVELOPMENT, THOSE WILL BE PLACED ON TOP OF EXHIBIT PLANNED EXHIBIT HALLS.

THAT'S CORRECT.

AND THAT, YOU KNOW, THAT, THAT TEAL SPACE AGAIN, THAT'S JUST, UM, WHAT WE, UH, HAD OUR CONSULTANTS DRAW UP TO ENSURE THAT WE COULD MEET THE SPACE REQUIREMENTS THAT WE FEEL WOULD BE MOST VALUABLE FOR THAT IT'S ABOUT TWO AND A HALF ACRES OF LAND THAT WE WOULD BE, UH, GIVING BACK TO, UM, THE COMMUNITY, UH, AT STREET LEVEL AND ABOVE.

AND SO OUR EXHIBIT HALLS HAVE TO GO UNDERGROUND UNDER THAT IN ORDER TO MAKE THIS PROJECT WORK FOR SURE.

KNOWING THAT'S AMAZING.

I THINK THAT'S A GREAT USE OF SPACE AND AIR RIGHTS AND WHATNOT.

UM, SO ALONG THOSE LINES, YOU MENTIONED THE FACT THAT THE CONVENTION CENTER, AND WHEN YOU, WHEN I SAY CONVENTION CENTER, I'M ASSUMING THE EXHIBIT HALLS UNDERNEATH THE PRE P THREE DEVELOPMENT ARE PART OF THIS CONVENTION CENTER, UM, PROJECT, YOU MENTIONED THAT YOU'RE GOING TO BE GOING OUT FOR ARCHITECTS AND ENGINEERS, AND THEN SUBSEQUENTLY FOR A CONSTRUCTION MANAGER AT RISK.

CORRECT.

SO THE P THREE DEVELOPMENT WOULD BE BUILDING ON TOP OF THE EXHIBIT HALLS, WHICH WOULD BE A COMPLETELY SEPARATE ENTITY THAT WOULD BE BUILDING THE P THREE DEVELOPMENT AS OPPOSED TO THE EXHIBIT HALLS UNDERGROUND.

CORRECT.

BUT OUR DESIRE IS TO RELEASE, UM, FOR THE T3 DEVELOPMENT IN SUCH A WAY THAT WE CAN WORK WITH WHOEVER'S GOING TO, UH, BE BUILDING ON THAT SITE TO ENSURE THAT, UH, WE'RE GOING TO BE DESIGNING, UH, WHAT'S GOING TO GO UNDERGROUND AND ABOVE GROUND AND MAKE SURE THAT IT IS ALL GOING TO WORK.

SO THE IDEA WOULD BE THAT, UH, WE WILL RELEASE, UM, THE RFQ OR RFP FOR THE MP3 DEVELOPMENT, UM, EARLY ENOUGH THAT WE WOULD BE ABLE TO INCORPORATE INTO THE DESIGN, HOW BUILDINGS WILL FUNCTION.

IT'S ASSUMING YOU GET THE DEVELOPMENT COMMUNITY TO BUY INTO A, THE RISK INVOLVED WITH HAVING TWO DIFFERENT CONSTRUCTION ENTITIES DOING THAT.

AND IT'S WHOLE DIFFERENT DESIGN TEAM DESIGNING YET, BUT THAT'S A WHOLE DIFFERENT ANIMAL.

UM, BUT JUST THE SPECULATION ITSELF OF WHAT'S GOING TO GO THERE, RIGHT? WHETHER IT'S A HOTEL OR, OR OFFICE SPACE OR AFFORDABLE HOUSING OR MUSICIAN SPACE, OR A MIXTURE OF ALL OF THAT, THAT'S ASSUMING THAT YOU GET THE DEVELOPMENT COMMUNITY TO BUY INTO THAT AND BUY INTO THE RISK THERE THEY'RE TAKING BY BUILDING ON TOP OF SOMETHING THEY'RE NOT DESIGNING AND THEY'RE NOT BUILDING THEMSELVES EITHER.

CORRECT.

GOTCHA.

SO THAT'S A HUGE RISK.

I WOULD JUST, I WOULD SUGGEST THAT, YOU KNOW, FROM A, FROM A, UH, EFFICIENCY PERSPECTIVE, I THINK IT'D BE, I THINK IT'D BE A LITTLE, UM, MORE EFFICIENT AND LESS RISK TO THE CITY.

IF YOU WERE TO CONSIDER HAVING A MASTER DEVELOPMENT TEAM, A MASTER DEVELOPER TAKE ON THE ENTIRE THING, BOTH FROM THE THREE PERSPECTIVE AND TO BRING ON A CONSTRUCTION DESIGN FIRM AND CONSTRUCTION FIRM TO DO THE ENTIRE THING, UM, THOSE, THOSE TEAMS DO EXIST.

YOU COULD HAVE A TEAM THAT HAVE, THAT BRINGS TOGETHER ALL OF THE MOVING PARTS AND DE-RISK THE ENTIRE THING FROM THE CITY'S PERSPECTIVE.

UM, BECAUSE I THINK THERE IS A LOT OF RISK INVOLVED WITH HAVING THOSE, NOT ONLY JUST THE SEPARATE ENTITIES, DESIGNING IT, THEN BUILDING IT.

THOSE ARE TWO PROJECTS IN AND OF THEMSELVES.

AND THEN YOU THROW ON THE CON THE, THE, I DON'T WANT TO SAY CONFUSION, BUT WE ARE GOING TO BE BUILDING A LIGHT RAIL SYSTEM RIGHT NEXT TO IT.

RIGHT.

AND I KNOW THAT THOSE TWO THINGS WILL ALWAYS BE SEPARATE, BUT WHEN YOU HAVE THREE DIFFERENT PEOPLE, THREE DIFFERENT ENTITIES TRYING TO POINT FINGERS AT EACH OTHER, IT'LL GET REALLY CONFUSING, REALLY FAST.

AND I THINK THE CITY WOULD MAXIMIZE ITS BENEFIT FROM A P THIS I'M PUTTING ON MY P THREE CONSULTANT HAT.

NOW I THINK THE CITY WOULD MAXIMIZE ITS BENEFIT.

UM, NOT ONLY TO THE TAXPAYERS FROM, FROM THE SENSE OF WORKING IN THE FINANCING MECHANISMS FOR, YOU KNOW, HOW DO WE, HOW DO WE MAYBE INCORPORATE SOME OF THE, SOME OF THE FUNDING POTENTIAL FUNDING FROM A LONG-TERM LAND LEASE THAT IS THAT P THREE DEVELOPMENT BACK INTO THE ENTIRE, UM, STRUCTURE OF THE PROJECT SO THAT MAYBE WE CAN NOT PULL AS MUCH FROM THE HOT TAX AND DISTRIBUTE THOSE TO OUR ARTISTS AND TO OUR, OUR, OUR, UH, MUSICIANS AND WHATNOT, AND LOOK AT OTHER WAYS TO USE THOSE FUNDS.

AND I THINK THAT'S, THAT'S ONE VERY IMPORTANT THING TO LOOK AT FROM A, YOU KNOW, JUST FROM A MONETARY PERSPECTIVE, BUT ALSO THE RISK THE CITY IS TAKING FROM A SPECULATION ASPECT, RIGHT? WHAT'S GOING TO BE BUILT THERE AND WHAT DEVELOPERS ARE GOING TO WANT TO BUILD SOMETHING THERE.

NUMBER TWO, YOU TAKE YOURSELF OUT OF THAT ENTIRE SPECULATION, CAUSE YOU'RE THROWING THAT RISK ONTO THE DEVELOPER.

AND THEN MORE IMPORTANTLY, WHEN YOU HAVE SEPARATE DESIGN FIRMS DESIGNING SEPARATE THINGS, AND YOU HAVE SEPARATE CONTRACTORS

[00:35:01]

BUILDING SEPARATE THINGS, AND ALL OF THEM TO BE HONEST WITH YOU COULD, COULD WORK IN CONCERT TOGETHER.

IT'S JUST, THE CITY IS GOING TO GET A LOT MORE BENEFIT.

IF YOU GO WITH SOME SORT OF MASTER DEVELOPMENT THAT PUTS THE RISK ON EVERY, ON, ON ONE DEVELOPER TO TAKE IT ALL AS OPPOSED TO PARCELING IT OUT.

I APPRECIATE THAT FEEDBACK.

THANK YOU SO MUCH.

AND I DID WANT TO CLARIFY THAT, UM, WE ALLOCATE THE MAXIMUM ALLOWED UNDER STATE LAW TO THE ARTS AND HISTORIC PRESERVATION, UM, THROUGH THE EFFORTS OF THE CITY COUNCIL.

SO JUST THEY THEY'D HAS THE ALLOCATION TO THOSE, THOSE VARIOUS COMMUNITIES, LIVE MUSIC, CULTURAL ARTS, HISTORIC PRESERVATION ARE NOT AFFECTED BY THE FINANCING OF THIS PROJECT.

THANK YOU.

UM, YES, I'LL SHARE MY COMMENTS.

UH, SO I'M ALSO A DOWNTOWN COMMISSIONER, UM, AND WE REVIEWED, UH, HAYWOOD SANDERS WHO I'M SURE YOU'RE FAMILIAR WITH, UM, REVIEW OF, UH, THE CONVENTION CENTER EXPANSION.

UM, AND IT SEEMS THE PROPOSAL THAT YOU'VE CREATED AND PRESENTED HERE REALLY ADDRESSES A LOT OF THE ISSUES THAT HE BROUGHT FORTH, UM, SUCH AS COMPETING WITH THE BIGGER MARKETS.

NO, WE'RE AUSTIN.

WE NEED TO REALLY REDEFINE OUR, OUR CONCEPT OF AN EXPANSION CENTER BEFORE WE MOVE FORWARD.

AND I THINK YOU'VE REALLY SUCCESSFULLY CREATED A BOUTIQUE CONVENTION CENTER THAT HAS FLEX SPACE.

AND I REALLY APPRECIATE THE PROGRAMMING AND THOUGHTFUL RETAIL SPACE.

UM, I GUESS, UH, MY COMMENTS KIND OF ECHO COMMISSIONER, UH HENLE ROBLEDO UH, AND KEEPING THE STREETS WALKABLE, UM, BECAUSE THEY AREN'T STREETS RIGHT NOW, AND WE'RE NOT TRYING TO INCREASE TRAFFIC FROM ONE SIDE TO THE OTHER.

SO IS STREET EVEN THE RIGHT WORD? DOES IT WANT TO BE A PASEO? YOU KNOW, IF WE'RE ACTIVATING WITH RETAIL, IS THAT JUST A BIKE FRIENDLY SPACE? DOES THAT WANT TO BE A SPACE THAT, UM, CAN BE EXPANDED FOR INDOOR OUTDOOR, UM, PROGRAMMING? I THINK THAT HAS A LOT OF POTENTIAL.

UM, SO I'M EXCITED TO SEE, UM, LIKE AN ESPLANADE OR SOMETHING LIKE THAT.

I THINK THERE'S A LOT OF POTENTIAL TO MAKE THAT THE FUTURE OF WHAT A CONVENTION CENTER CAN BE.

UM, YEAH, SO IT SEEMS A LITTLE BIT EARLY TO REVIEW WITH THE URBAN DESIGN GUIDELINES AND WE HAVEN'T DONE A WORKING GROUP FOR THEIR PROJECTS.

WHAT ARE YOU LOOKING FROM US TONIGHT? UH, WE SIMPLY WANTED TO UPDATE YOU ON OUR PROJECT THIS EVENING.

UM, SHOW YOU WHAT OUR PROOF OF CONCEPT IS.

UH, WE'VE, UH, WE'VE NOT BEEN ABLE TO KIND OF AIR THIS OUT PUBLICLY YET.

UH, WE DID THIS WITH THE TOURISM COMMISSION AND WE CERTAINLY, UH, WANTED TO MEET WITH YOU ALL AND, UH, JUST KIND OF LET YOU KNOW THAT WE'RE HOPEFUL TO, UH, GET A DESIGN TEAM ON BOARD, UM, YOU KNOW, BY THE END OF THE YEAR AND THAT WE, UH, LOOK FORWARD TO WORKING WITH YOU.

AND IT'S BEEN GREAT FEEDBACK THAT YOU'VE GIVEN US SO FAR TODAY.

UM, AND THIS WILL BE THE KIND OF CONSTANT COMMUNICATION THAT WE'D LIKE TO HAVE WITH YOU ALL, AS WE'RE GOING THROUGH DRAFTS OF A DESIGN OF THIS NEW FACILITY AND, UM, REALLY GET THE COMMUNITY'S FEEDBACK, REALLY GET YOUR FEEDBACK TO MAKE SURE THAT WE'RE, THAT WE ARE TRULY, UH, HITTING THE MARK, UM, ON WHAT WE'RE GOING TO DELIVER, UH, TO THE COMMUNITY AND WHAT THIS AREAS OF DOWNTOWN IS GOING TO BE, UM, YOU KNOW, TURNED INTO.

SO WE'RE VERY EXCITED ABOUT THAT AND SIMPLY WANTED TO, UH, TO DAYLIGHT THIS TEAM TODAY.

AWESOME.

WELL, THANK YOU FOR THE OPPORTUNITY TO COLLABORATE AND WE LOOK FORWARD TO HEARING FROM YOU IN THE FUTURE, SAY CHAIR, CHAIR WEAVER.

I HAVE ONE MORE THAN THE CONVERSATION TRIGGERED.

ONE MORE QUESTION OR ONE MORE CONCERN.

CAN YOU DISCUSS THE PARKING STRATEGY FOR THE SURE.

WE'VE GOT A TWO PARKING GARAGES THAT WE CURRENTLY, UM, OWN AND OPERATE, UH, IN THE DOWNTOWN AREA.

SO WE DO NOT ANTICIPATE AND SINCE, UH, SO MANY OF OUR, UH, HOTELS ARE IN THE DOWNTOWN WALKING AREA.

UM, WE REALLY HAVE A MAJORITY OF OUR ATTENDEES THAT COME IN, UH, TO, TO AUSTIN.

UM, THEY, WHEN THEY FLY IN, THEY UBER, OR WE ARE GOING TO HAVE AN EXCELLENT OPPORTUNITY FOR THEM TO TAKE THE TRAIN INTO DOWNTOWN.

SO ALTHOUGH WE'RE DOUBLING THE SIZE OF THE CONVENTION CENTER, IT'S, UH, WE'RE HOPEFUL THAT WE WILL NOT BE IMPACTING THE TRAFFIC IN A NEGATIVE WAY BY PUTTING MORE CARS IN THE DOWNTOWN AREA.

AND WE'RE NOT ANTICIPATING, UM, AT THIS TIME WE'RE NOT ANTICIPATING ADDING ANY ADDITIONAL PARKING.

UM, BUT AGAIN, THAT'LL BE KIND OF FLESHED OUT IN THE DESIGN PROCESS AS WELL.

HMM.

THANK YOU.

ALL RIGHT.

THANK YOU SO MUCH.

HAVE A GOOD EVENING.

THANK YOU.

GOOD EVENING.

ALRIGHT.

UM, ITEM ONE, B

[1.b. Discussion and possible action relating to recommendations for the Downtown Density Bonus Program, to be presented Sam Tedford - Housing and Planning Department.]

DISCUSSION AND POSSIBLE ACTION RELATING TO RECOMMENDATIONS FOR THE DOWNTOWN DENSITY BONUS PROGRAM, UM, TO BE PRESENTED BY SAM TEDFORD FROM HOUSING AND PLANNING.

CAN I ASK A REAL QUICK QUESTION? OKAY.

CHAIR, IF I MAY JUST START AGAIN, UM, THE PRESENTATION THAT WE SAW CAN AND GET EMAILED TO US, NUMBER ONE, BUT WHY AREN'T WE GETTING THESE BEFOREHAND?

[00:40:01]

I WAS HAVING TO GO UP AND LOOK AT THIS, YOU KNOW, ON THE SCREEN.

AND I KNOW AS THE CHAIR OF ANOTHER BOARD AND COMMISSION, UM, STAFF REALLY HOUNDS ME TO GET MY STUFF IN 72 HOURS PRIOR TO, AND I DON'T UNDERSTAND WHY STAFF HASN'T GIVEN US THE SAME RESPECT SO WE CAN REVIEW THESE THINGS AND HAVE THEM IN FRONT OF US, AND MORE IMPORTANTLY, TO HAVE THEM ONLINE SO THAT THE PUBLIC CAN SEE THEM WHILE WE'RE SEEING THEM AS WELL.

UM, MAYBE THAT'S THE REASON WHY WE'RE NOT GETTING ANY PUBLIC FEEDBACK BECAUSE NO ONE COULD SEE THIS PRESENTATION BEFOREHAND.

NOT SURE IF I MADE SURE IT IS NOT A RESPECT THING THAT TRADITIONALLY BRIEFINGS ARE NOT GIVING AN ADVANCE.

THIS IS A COURTESY THAT'S BEEN GIVEN TO THE DESIGN COMMISSION OVER THE YEARS.

EVEN THE COUNCIL DOESN'T GET BRIEFINGS BEFORE OR POSTED ONLINE WHEN A BRIEFING HAS BEEN CONDUCTED.

SO PROJECTS HAVE GIVEN A COURTESY TO THE COMMISSION.

SO IT'S NOT REQUIRED THAT ANY PARTICULAR PROJECT WHEN YOU'RE DOING A BRIEFING BE PRESENTED BEFOREHAND OR POSTED ONLINE WELL, CURTIS WOULD TO BE FANTASTIC TO GET THESE THINGS BEFOREHAND BECAUSE HAVING TO GO UP AND SEE THEM ON THE SCREEN IS A LITTLE DIFFICULT.

I UNDERSTAND, BUT THERE IS NO REQUIREMENT FOR A BRIEFING TO HAVE THOSE POSTED BEFOREHAND.

TOTALLY UNDERSTAND.

I WILL SAY IT IS POSTED FOR ACTION.

IT'S NOT POSTED AS A BRIEFING, SO I KNOW THAT'S SEMANTICS, BUT IT'S STILL, THAT'S CORRECT.

WE GAVE YOU AN OPTION FOR ACTION.

IF YOU CHOOSE, WE CAN POST THESE AS BRIEFINGS, IF YOU LIKE, AND YOU WOULD NOT BE ABLE TO DISCUSS THE ITEMS. SO WE POSTED THAT AS A DISCUSSION ITEM TO GIVE YOU THE OPPORTUNITY, DISCUSS OTHERWISE FOLLOWING THE SAME RULES AS CITY COUNCIL, YOU WOULD NOT HAVE THE OPPORTUNITY TO ENGAGE IN A DISCUSSION.

THANK YOU, SIR.

OKAY.

I DON'T WANT TO BE A DENSITY BONUS.

WELL, COME BACK.

UH, IT'S SEPARATE.

WE CAN'T HEAR YOU.

YES.

AND ON WEBEX BEFORE WHERE IT DIDN'T WORK THE SECOND, THIRD OR FOURTH TIMES.

VERY LUCKY.

UM, GOOD EVENING COMMISSIONERS.

THANK YOU ALL FOR HAVING ME WITH YOU THIS EVENING.

UM, I WILL BE SHARING A LOT OF YOUR TIME TONIGHT, UM, AS I ALSO HAVE THE NEXT BRIEFING ON YOUR AGENDA, BUT FIRST I'D LIKE FOR US TO TALK A BIT ABOUT THE DOWNTOWN DENSITY BONUS PROGRAM, UM, YOU ALL HAVE BEEN REQUESTING AN UPDATE ON WHERE WE ARE WITH OUR PRESET FOR A COUNCIL RESOLUTION FROM 2021.

AND SO I'M HERE TO BRING YOU THE LATEST AND GREATEST INFORMATION RELATED.

UM, AND MY NAME IS SAM TEDFORD.

I'M A PRINCIPAL PLANNER IN THE HOUSING AND PLANNING DEPARTMENT.

SO TODAY I WILL REFRESH YOUR MEMORY WITH A BIT OF BACKGROUND ON WHY WE'RE HERE AND WHAT WE'RE DOING RELATED TO THE DOWNTOWN DENSITY BONUS PROGRAM.

I'LL RECAP SOME PROGRESS TO DATE, AND THEN, UM, GUIDE YOU ALL THROUGH A DISCUSSION OF WHERE WE'VE LANDED AS A STAFF RECOMMENDATION AND WHAT THE NEXT STEPS ARE IN THIS PROCESS.

SO FOR BACKGROUND, THAT RESOLUTION I MENTIONED WAS PASSED IN APRIL, 2021.

AND COUNCIL, UH, ADOPTED A RESOLUTION THAT ASKS FOR STAFF TO WORK ON A NUMBER OF DIFFERENT THINGS RELATED TO THE DOWNTOWN DENSITY BONUS PROGRAM.

UM, MANY OF THESE THINGS HAVE BEEN ALREADY COMPLETED TO DATE.

SO ONE WAS A FAIRLY, UM, TECHNICAL OR ADMINISTRATIVE TYPE ACTION TO MOVE THE VOLUNTARY DOWNTOWN DENSITY BONUS FEES FROM THE LAND DEVELOPMENT CODE INTO THE CITY'S FEE SCHEDULE, WHICH IS ADOPTED ANNUALLY WITH THE CITY'S BUDGET, UM, THAT IS COMPLETED.

THE NEXT WAS TO IMPLEMENT INTERIM FEES IN LIEU OF AFFORDABLE HOUSING BASED UPON PRIOR RESEARCH.

SO WE'VE TALKED ABOUT THOSE FEES A FEW TIMES.

THOSE ARE THE FEES THAT ARE IN PLACE TODAY.

WE WERE THEN, UH, ADDED TO THE FEE SCHEDULE.

UM, ANOTHER ELEMENT OF THE RESOLUTION ASKS STAFF TO EXPLORE CHANGES TO THE CURRENT FAR FLORIDA AREA OF RATIO POLICY AND THE DOWNTOWNS AND DENSITY BONUS PROGRAM THAT HAS BEEN COMPLETED AS WELL.

AND TODAY WHAT WE'RE HERE TO TALK ABOUT IS THE, UM, OUTSTANDING ELEMENT FROM THIS RESOLUTION, WHICH WAS TO UPDATE THOSE FEES IN LIEU OF AFFORDABLE HOUSING IN THE DOWNTOWN DENSITY BONUS PROGRAM.

SO PROGRESS TO DATE, UM, HAS INCLUDED, UH, RESEARCH AND ANALYSIS.

UM, NUMEROUS COMMISSION BRIEFINGS, SEVERAL OF WHICH HAVE BEEN TO THIS COMMISSION AND, UH, ADDITIONAL STAKEHOLDER ENGAGEMENT.

UM, WE'VE WORKED PRETTY CLOSELY WITH THE DOWNTOWN AUSTIN ALLIANCE AND THE REAL ESTATE COUNCIL OF AUSTIN AS WE'VE WORKED ON RESPONSE TO THIS COUNCIL RESOLUTION.

UM, IN ADDITION, UM, WE'VE TALKED WITH THIS COMMISSION BEFORE ABOUT SOME OF THE, UM, MARKET ANALYSIS AND MODELING THAT HAS TAKEN PLACE AS PART OF OUR RESPONSE TO THIS RESOLUTION AND JUST ANALYSIS OF RECENT DEVELOPMENT TRENDS IN DOWNTOWN.

[00:45:01]

UM, WE'VE ALSO PROVIDED A BRIEFING TO OUR DOWNTOWN COMMISSION, SO SOME OF STAFF'S OBJECTIVES AND WE'RE REPRESENTED ALSO IN THE COUNCIL RESOLUTION, UM, THE OBJECTIVES FOR THIS WORK TO MAXIMIZE THE COMMUNITY BENEFIT IN THIS VOLUNTARY, UH, DENSITY BONUS PROGRAM.

UM, WE ALSO KNEW, ESPECIALLY GIVEN THAT THIS WAS TAKING PLACE IN, IS TAKING PLACE DURING A PANDEMIC.

AND THAT HAS RESULTED IN A LOT OF UNCERTAINTY IN MANY WAYS IN OUR MARKET, UM, TO KEEP FLEXIBILITY AND RESILIENCE IN THIS PROGRAM TO ACCOUNT FOR THOSE KINDS OF FLUCTUATIONS THAT ARE REALLY HARD TO FORESEE IN ADVANCE.

UM, AND FINALLY, I THINK THAT HAS BECOME MORE AND MORE CLEAR, NOT JUST WITH THE DOWNTOWN PROGRAM ALONE, BUT WITH MANY OF OUR DENSITY BONUS PROGRAM CITYWIDE THAT MONITORING AND EVALUATING THE OUTCOMES OF THOSE PROGRAMS PRETTY CONSISTENTLY, SO THAT WE CAN COME IN AND, AND LEARN FROM WHAT HAS HAPPENED IN THOSE PROGRAMS AND WHAT THE ACTUAL OUTCOMES ARE THAT WE'RE SEEING, UM, SO THAT WE CAN REFLECT THAT AND, AND MAKE POLICY UPDATES TO BETTER THESE PROGRAMS AS OFTEN AS WE CAN, OR AS OFTEN AS IT MAKES SENSE, THAT SAID, I'M GOING TO CUT TO THE CHASE AND REVEAL, UM, WHERE WE ARE HEADED WITH THE STAFF RECOMMENDATION AT THIS TIME, OR THAT ELEMENT TO UPDATE OUR FEES IN LIEU IN THIS BONUS PROGRAM FOR OUR RESIDENTIAL FEES, WE ARE RECOMMENDING MAINTAINING THE INTERIM FEES THAT ARE IN PLACE TODAY.

UM, SO WE HAVE A CHART HERE SHOWING THE 2014 FEES.

THAT IS THE FEES THAT WERE ADOPTED, UM, AT THE ONSET OF THIS BONUS PROGRAM IN 2014.

AND THEN THE INTERIM FEES WAS THE LAST TIME THAT WE ADJUSTED THESE FEES.

AND THAT WAS IN RESPONSE TO THIS COUNCIL RESOLUTION AND BASED ON PRIOR WORK.

AND TODAY STAFF IS RECOMMENDING THAT FOR THE 2023 FISCAL YEAR.

UM, WE MAINTAIN THE CURRENT INTERIM FEES FOR RESIDENTIAL PROJECTS OR COMMERCIAL PROJECTS.

WE ARE RECOMMENDING DECREASING THE INTERIM FEE RATE, UM, TO $9 FOR CBD ZONED PROPERTIES AND $6 PER SQUARE FOOT OF BONUS AREA FOR COMMERCIAL, UM, OTHER ZONED PROPERTIES.

I'M GOING TO DIVE INTO THIS MORE.

SO, UM, THESE NUMBERS WILL NOT DISAPPEAR.

WE'LL TALK ABOUT THEM A LITTLE BIT MORE.

SO REASONING BEHIND THE STAFF RECOMMENDATION REGARDING RESIDENTIAL PROJECTS.

UM, WE MAY, WE RECOMMEND MAINTAINING THOSE INTERIM RESIDENTIAL FEE RATES THAT WERE ADOPTED IN 2021, UM, THROUGH VARIOUS, UM, ASPECTS OF OUR RESEARCH AND ANALYSIS AND LISTENING TO STAKEHOLDER INPUT.

UM, WE BELIEVE THAT THESE FEES ARE APPROXIMATELY WHERE THEY OUGHT TO BE FOR NOW.

UM, WE'VE SEEN CONSISTENT PARTICIPATION IN THE BONUS PROGRAM FOR RESIDENTIAL PROJECTS SINCE THE INTERIM FEES WERE, UM, WERE ADOPTED.

AND SO WE BELIEVE THAT THEY'RE, THEY'RE SET AT THE RIGHT RATE AT THIS TIME.

WE KNOW THAT THE DEVELOPMENT, UM, COSTS HAVE RISEN SINCE 2019, WHEN SOME OF THE RESEARCH THAT WENT INTO THOSE FEES WAS COMPLETED, HARD COSTS HAVE RISEN, CITY FEES HAVE RISEN.

HOWEVER, WE ALSO KNOW THAT HOUSING VALUES HAVE RISEN, UM, SINCE 2019 CONSIDERABLY AS WELL.

UM, AND SO WE THINK THESE FEES ARE JUST ABOUT RIGHT WHERE THEY ARE RIGHT NOW FOR COMMERCIAL.

HOWEVER, WE DO RECOMMEND LOWERING THIS FEE, UM, FROM WHERE IT WAS SET IN 2021 AS AN INTERIM FEE.

UM, WE KNOW THIS, THIS RECOMMENDATION IS BASED ON A NUMBER OF FINDINGS.

ONE IS, UM, PERHAPS THE MORE OBVIOUS THAT THIS IS A SUBSTANTIAL VARIATION FROM THE PRIOR POLICY, WHICH WAS A $0 PER SQUARE FOOT FOR COMMERCIAL PROJECTS.

SO THERE WAS A HIGH DEGREE OF VARIATION GOING FROM $0 PER SQUARE FOOT UP TO IN SOME INSTANCES, $18 PER SQUARE FOOT.

UM, AND SO THAT CAN BE CHALLENGING TO MAKE THAT TYPE OF, OR THAT BIG OF A CHANGE IN POLICY IN A PROGRAM LIKE THIS FOR THE MARKET TO RESPOND TO.

ADDITIONALLY, WE CONSISTENTLY HEARD FROM STAKEHOLDERS THROUGHOUT THE PROCESS THAT THESE INTERIM FEES WERE SET TOO HIGH, THAT IT WAS GOING TO DETER PARTICIPATION IN THE BONUS PROGRAM FOR COMMERCIAL PROJECTS.

UM, BUT FINALLY, AND PERHAPS THE MOST IMPORTANT WHEN IT COMES TO THE COMMERCIAL WAS THAT THERE'S A CONSIDERABLE AMOUNT OF MARKET UNCERTAINTY FOR, UM, COMMERCIAL DEVELOPMENT IN DOWNTOWN RIGHT NOW.

UM, WE'VE HEARD AGAIN CONSISTENTLY THROUGH STAKEHOLDER INPUT THAT THERE'S A BIT OF A HOLDING PATTERN IN THIS MARKET RIGHT NOW.

UM, AS A LOT OF OTHER THINGS START TO BECOME MORE CLEAR IN TERMS OF DEMAND FOR OFFICE SPACE IN CBB, IN, IN DOWNTOWN PROJECTS, UM, IN THE FUTURE.

AND SO AT THIS TIME WE ARE RECOMMENDING LOWERING THOSE FEES.

[00:50:03]

THIS SIDE COULD HAVE GONE AT THE BEGINNING, BUT IT'S ALWAYS A GOOD REMINDER TO THINK ABOUT, UM, THAT THESE ARE VOLUNTARY BONUS PROGRAMS. AND SO WE MUST RELY ON AN INCENTIVE BASED APPROACH TO HAVING THE PRIVATE MARKET DELIVER COMMUNITY BENEFITS.

UM, WE ALSO KNOW IN ORDER TO UNDERSTAND WHAT IS AN INCENTIVE-BASED PROGRAM, WE HAVE TO CALIBRATE THESE POLICIES PRETTY CLOSELY AND THEN MONITOR AND EVALUATE WHAT THE ACTUAL OUTCOMES ARE IN THIS PROGRAM.

SO PART OF WHAT OUR MARKET ANALYSIS AND MODELING LOOKS AT IS TRYING TO DETERMINE, TO DETERMINE WHAT IS THE VALUE OF THOSE BONUS ENTITLEMENTS AND WHAT IS THE COST TO PROVIDE THE COMMUNITY BENEFIT.

AND SO IN DOWNTOWN, WHERE WE SEE MOST PARTICIPATION IN THE PROGRAM OPTING FOR A FEE IN LIEU, INSTEAD OF PROVIDING ON-SITE AFFORDABLE HOUSING BEYOND WHAT MIGHT BE REQUIRED IN SOME DISTRICTS LIKE RAINY, UM, THERE IS AN ONSITE REQUIREMENT FOR, UH, PART OF THE TIER OF THE BONUS.

UM, AND SO THE COST TO PROVIDE COMMUNITY BENEFIT ENDS UP BEING QUANTIFIED AS A FEE PER SQUARE FOOT.

AND, UM, THAT IS, UH, WE MAKE RECOMMENDATIONS FOR WHAT THAT FEE RATE SHOULD BE.

OKAY AGAIN, UM, I THINK WE'VE TALKED ABOUT IT THROUGH SOME OF THESE OTHER SLIDES IN HOW WE GOT TO THIS, UM, THE STAFF RECOMMENDATION.

UM, BUT WE'VE LEARNED A LOT THROUGH THIS INITIAL PROCESS.

WE HAVE NOT IN AUSTIN, TYPICALLY GONE BACK AND DONE THIS RECALIBRATION OF OUR DENSITY BONUSES.

AND SO WE'VE, WE'VE LEARNED A LOT IN THIS ROUND OF DOING IT.

UM, AND WE'VE SEEN SOME STUDIES COME OUT THAT ALSO PROVIDE SOME GUIDANCE FOR THIS TYPE OF WORK.

UM, AND SO I'VE BEEN REFERENCING HERE, SOME WORK FROM THIS, UM, REPORT CALLED STRENGTHENING INCLUSIONARY HOUSING FEASIBILITY STUDIES FROM THE GROUNDED SOLUTIONS NETWORK THAT GIVES US THIS CAN AFFORD LEGGED STOOL APPROACH OR, UM, THINGS TO CONSIDER AS WE'RE CALIBRATING, THESE DENSITY BONUS PROGRAMS. SO ONE IS TO LOOK AT EXISTING POLICY.

ANOTHER IS TO CONSIDER THE DEVELOPMENT TRENDS AND THE RECENT PARTICIPATION IN THE PROGRAM.

UM, OF COURSE WE NEED TO LISTEN TO OUR STAKEHOLDERS, UM, AS THEY PROVIDE THEIR PERSPECTIVES.

AND, UM, FINALLY IS TO LOOK AT SOMETHING LIKE FEASIBILITY STUDIES AND TO BETTER UNDERSTAND MARKET DYNAMICS AND TO TEST, UH, SENSITIVITY.

AND SO WE BELIEVE WE'VE TAKEN, UM, AN APPROACH THAT INCLUDES AND IS RESPONSIVE TO ALL OF THESE VARIOUS FACTORS THAT WE THINK ARE IMPORTANT TO CALIBRATING THESE BONUSES.

UM, AND WE'LL BE BETTER POSITIONED TO CONTINUE THIS WORK INTO THE FUTURE.

SO FINALLY, UM, JUST TO RECAP, AND THEN TO ADD SOME OF THE OTHER RECOMMENDATIONS THAT ARE GOING TO BE COMING OUT ON STAFF'S BEHALF, UM, WE DO RECOMMEND MAINTAINING THE INTERIM RESIDENTIAL FEES IN LIEU.

WE RECOMMEND LOWERING THE COMMERCIAL FEES UNTIL MARKET DYNAMICS ARE MORE CLEAR.

UM, WE THINK IT'S IMPORTANT FOR US TO CONTINUE TO MONITOR PARTICIPATION IN THE BONUS PROGRAM.

AND FINALLY, WE DO THINK IT IS IMPORTANT FOR US TO BE ABLE TO ABOUT REEVALUATE THE DOWNTOWN'S DENSITY BONUS PROGRAM, MORE HOLISTICALLY TO ACHIEVE MORE EQUITABLE OUTCOMES FOR THE COMMUNITY.

THE COUNCIL DIRECTION WAS VERY SPECIFIC JUST TO LOOK AT THE FEES, BUT WE'VE HEARD FROM STAKEHOLDERS INCLUDING THIS COMMISSION, THAT THERE'S AN INTEREST IN TRYING TO UNDERSTAND WHAT IT WOULD TAKE TO GET MORE ON-SITE AFFORDABLE HOUSING IN THESE PROJECTS.

AND SINCE IT WAS NOT, UM, AS PART OF THE DIRECTION THAT SET US ON THIS PATH TO COME BACK TO COUNCIL, UM, WE WEREN'T REALLY LOOKING HOLISTICALLY AT THE PROGRAM AND WE WERE JUST KIND OF HONING IN ON WHAT IS THE FEE RATE THAT WOULD BE RECOMMENDED AT THIS TIME.

AND SO STAFF DOES THINK IT WOULD BE IMPORTANT FOR US TO BE ABLE TO LOOK MORE HOLISTICALLY AT THE PROGRAM, UM, TO SEE IF WE'RE GETTING THE OUTCOMES THAT, THAT WE WANTED FROM THIS PROGRAM, AND IF THEY ARE EQUITABLE TO OUR COMMUNITY AND FOR OUR NEXT STEPS, UM, THE STAFF RECOMMENDATION TO THE DOWNTOWN DENSITY BONUS FEES WILL BE INCORPORATED INTO THE FEE SCHEDULE AS PART OF THE CITY MANAGER'S BUDGET.

UM, THE CITY MANAGER'S BUDGET IS TYPICALLY, UM, MADE PUBLIC IN JULY AS COUNCIL STARTS ITS BUDGET DISCUSSIONS.

AND SO WE ANTICIPATE A COUNCIL ADOPTION IN AUGUST, 2022, AGAIN, AS PART OF THE LARGER CITY WIDE BUDGET DISCUSSIONS.

NOW THIS FEE LIVES IN THE FEE SCHEDULE, THAT'S GOING TO BE KIND OF THE TEMPO AND THE CADENCE OF THIS, UH, THIS PROGRAM.

AND, AND SO IT WILL, IT'LL LIVE IN THE CITY'S BUDGET AND THAT'S WHERE, UM, WOULD THE STAFF, UH, RECOMMENDATION WE'LL CONTINUE TO LIVE.

UM, HOWEVER, SINCE THAT IS NOW ON TRACK TO BE PART OF THE FEE SCHEDULE, UH, STAFF WOULD LIKE TO, UM, COMPLETE A MEMO THAT IS GOING TO CONVEY OUR RESEARCH AND RECOMMENDATIONS AS WELL AS A LOT OF THE ADDITIONAL WORK THAT WE DID AND WHAT WE HEARD FROM STAKEHOLDERS AS WE, UM, ENGAGE THE COMMUNITY ABOUT

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THIS, UM, THIS WORK.

AND SO WE ANTICIPATE ALSO COLLECTING THAT INFORMATION AND DISTRIBUTING IT IN A MEMO TO MAYOR AND COUNCIL.

UM, AND WE BELIEVE THAT'LL PROBABLY BE OUT IN ADVANCE OF THE CITY MANAGERS BUDGET, UM, PROBABLY JUNE, 2022.

THOSE ARE ALL THE SLIDES THAT I HAVE FOR YOU TODAY.

SO I'LL STOP SHARING AND I WILL TAKE SOME QUESTIONS.

I HAVE A COUP I'LL OPEN THE DOOR AGAIN.

I HAVE A BIG CONCERN ABOUT THIS.

SO SLIDE TWO KIND OF TALKED ABOUT THE STAKEHOLDERS AND THEY WERE KIND OF, THEY WERE LISTED AS DAA N RICA.

AND THEN THROUGHOUT THE PRESENTATION YOU GIVE SAYING, WELL, YOU CAN SPELL IT WITH THESE BOATS.

WELL, IT SEEMS LIKE THEY'RE NOT ENOUGH PEOPLE AT THE TABLE, YOU KNOW, RICA IN DAA.

THEY SEEM LIKE THEY HAVE THEIR OWN CONCERNS, RIGHT? WE DIDN'T TALK ABOUT ANY KIND OF RACIAL EQUITY GROUPS.

WE DIDN'T TALK ABOUT HOMELESS REPRESENTATION.

WE DIDN'T TALK ABOUT LOW COST.

HOUSING EXPERTS WERE RELYING ON THESE NUMBERS FROM RICA AND FROM DAA, WHICH I THINK IS THAT'S THE TERRIBLE DIRECTION TO BE TAKEN RIGHT NOW.

AND PRICES ARE RISING.

PRICES ARE GOING UP SO MUCH EVERY DAY.

IT'S A HUGE MOVING TARGET, THOSE NUMBERS THAT YOU SHOWED ME THAT, YOU KNOW, I'D RATHER GO IN LIEU OF ANY DAY, YOU KNOW, IF YOU'RE GOING TO KEEP THOSE RIGHTS THERE.

SO I'M REALLY DISAPPOINTED IN THIS.

AND I JUST WANT TO TELL YOU, ESPECIALLY THE STAKEHOLDER PROCESS, YOU NEED TO REACH OUT A LITTLE BIT MORE TO MORE OF THE COMMUNITY THAT ARE REALLY INVOLVED WITH LOW-COST HOUSING AND WITH HOMELESSNESS AND ALL THAT KIND OF STUFF.

UH, BEFORE I CAN KIND OF LIKE APPROVE ANY KIND OF PLAN LIKE THIS, OR ARE WE PATIENT, THANK YOU.

ANY OTHER COMMENTS FROM THE COMMISSIONERS, MR. CARROLL? OKAY.

UH, WHERE DID WE GET? UH, I WANT TO START AT THE BEGINNING, UH, OBJECTIVES, MAXIMIZE COMMUNITY BENEFIT.

UM, I FAIL TO SEE HOW COLLECTING FEES AND LOSE FOR A HOUSING VOUCHER PROGRAM IS MAXIMIZING THE COMMUNITY BENEFIT, UH, DIRECTING TOWARDS LOW BARRIER APPROACHES.

I THINK WE'RE FAILING IN THIS PROCESS, PARTLY BECAUSE WE'RE FIT.

THE SECOND ONE SAYS FUTURE OF DEMAND FOR DOWNTOWN OFFICE IS UNCERTAIN.

TELL THAT TO FACEBOOK.

THEY JUST RENTED A MILLION SQUARE FEET DOWNTOWN.

THEY DON'T FEEL IT'S UNCERTAIN AGAIN, THIS OBJECTIVE SCENES MISGUIDED.

UM, NOW GOING INTO THESE NUMBERS, I DON'T SEE ANYTHING IN THE PRESENTATION THAT SHOWS HOW THESE NUMBERS WERE DERIVED.

DID YOU SPEAK TO THAT? DO YOU HAVE A MODEL THAT YOU CAN SHARE WITH US TO, TO SHOW THE OUTPUT THAT, THAT CREATED THESE NUMBERS AND WHY ARE THEY DIFFERENT FROM THE INTERIM FEES AS AN EXAMPLE? SURE.

UM, AND THAT HAS BEEN PART OF, I MEAN, WHY THIS PROCESS HAS BEEN VERY LONG AND DRAWN OUT IS BASED PRETTY MUCH ENTIRELY ON THE FINANCIAL MODELING THAT'S BEEN GOING ON.

UM, WE WERE USING A TOOL THAT WAS CREATED, UM, BY ECONOMIC CONSULTANTS, ECHOED NORTHWEST AND THROUGHOUT OUR ENGAGEMENT STAKEHOLDERS AROUND THIS MODEL, WE FOUND THAT IT HAD SOME ERRORS IN IT THAT, UM, KIND OF TOOK US BACK TO THE DRAWING BOARD TO REEVALUATE AND DO SOME ADDITIONAL QUALITY ASSURANCE ON THE MODELING AND FINANCIAL TOOLS THAT WE WERE USING.

UM, THAT SAID MOST OF OUR MODELING SHOWED THAT, UM, THIS PROGRAM WOULD NOT SUPPORT, UM, A FEE IN LIEU WHATSOEVER THAT THERE'S NO VALUE IN THE BONUS ENTITLEMENTS.

HOWEVER, WHEN WE LOOKED AT DEVELOPMENT TRENDS, UM, WE KNEW THAT THERE WAS STILL CONSISTENT PARTICIPATION.

SO THERE WAS AN OBVIOUS DISCONNECT BETWEEN MUD, OUR MODELING WAS SHOWING US AND WHAT WE WERE SEEING IN PRACTICE.

AND SO THAT IS SORT OF HOW IT LANDED AT MAINTAINING OUR CURRENT FEES BECAUSE OUR FINANCIAL MODELING WAS TELLING US THAT THERE'S NO VALUE IN THIS PROGRAM.

AND YET WE KNEW THAT THERE WAS, THERE WAS VALUE IN THIS PROGRAM AND WE'VE CONTINUED TO SEE PARTICIPATION.

AND SO THIS WAS STAFF'S BEST EFFORTS AT TRYING TO, TO MEET SOMEWHERE IN THE MIDDLE AT THIS POINT IN TIME, UM, BECAUSE WE DIDN'T HAVE, UM, WE DIDN'T HAVE RESEARCH THAT WOULD SUPPORT HIGHER FEE AT THIS TIME.

SO, UH, YOU KNOW, IT'D BE HELPFUL TO SEE THAT MODEL.

I FIND IT PERSONALLY INTERESTING AND, AND ALMOST TO THE POINT WHERE I QUESTIONED THE MODEL, IF IT REALLY DOES COME OUT TO BE ZERO.

SO SHARING THAT MODEL, UM, YOU KNOW, WITH AT LEAST US, IF NOT THE PUBLIC TO ANALYZE IT, I MEAN, YOU JUST ADMITTED IT HAD MISTAKES.

ONE TIME IT COULD HAVE MORE MISTAKES.

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AND I WOULD ALSO ARGUE THAT PARTICIPATION DOES NOT EQUAL SUCCESS.

WHEN YOU SAY, UH, FOUR PROJECTS APPLIED IN THE INTERIM, UH, FEE PHASE, DID YOU COMPARE THAT TO PROJECTS BEFORE THE INTERIM FEES IS FOUR SUCCESSFUL? DID THE YEAR BEFORE, DID WE HAVE AT LEAST FOUR OR MORE THAN FOUR? UM, HOW, HOW, I JUST DON'T UNDERSTAND IT.

FOUR IS SUCCESSFUL.

IT ACTUALLY SEEMS KIND OF LOW TO ME.

SURE.

I THINK THERE WERE, THERE WERE TWO QUESTIONS OR THINGS I COULD RESPOND TO IN THAT.

UM, SO THE FIRST IS THE MODEL IS, IS PUBLICLY AVAILABLE.

AND AGAIN, THAT WAS HOW WE WERE AT.

THAT'S HOW WE FOUND SOME OF THE INITIAL ERRORS IN THE MODEL.

AND, UM, WE'VE EXPERIENCED A FEW MONTHS OF DELAY DUE TO THE FACT THAT WE WERE TAKING A MODEL THROUGH SOME RIGOROUS QUALITY ASSURANCE PROCESSES.

UM, BUT YOU'RE, TO YOUR POINT, IT'S IMPORTANT TO HAVE THAT KIND OF TRANSPARENCY WITH THE MODEL SO THAT WE CAN MAKE IT A BETTER TOOL.

UM, I DID NOT INCLUDE THE LINK TO THE MODEL IN THIS PRESENTATION, BUT I BELIEVE IT'S IN PAST ONES, BUT I WILL TRY AND, UH,