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[CALL TO ORDER]

[00:00:06]

THE MUSIC COMMISSION TO ORDER IT IS 6 46.

AND, UH, I THINK WE HAVE ANY CITIZEN COMMUNICATION TODAY.

ALL RIGHT.

[APPROVAL OF MINUTES]

AWESOME.

SO WE CAN MOVE RIGHT INTO YOUR APPROVAL OF THE MINUTES.

LET'S GIVE EVERYBODY A QUICK SEC.

OKAY.

ALL IN FAVOR.

OKAY.

AND MOVE

[2. Discussion and possible action on City-paid music performance including loading and unloading and cancellation.]

RIGHT IN THEN TO OUR DISCUSSION AND ACTION ITEMS. AND OUR FIRST ONE IS DISCUSSION POSSIBLE ACTION ON CITY PAID MUSIC PERFORMANCE, INCLUDING LOADING AND UNLOADING TIME AND CANCELLATION FEES.

SO, UH, YEAH.

GRAHAM AND SCOTT, UH, WHAT KIND OF LEADING ON THIS ITEM LAST TIME? SO, YEAH.

UH, AND I THINK SCOTT BROUGHT THIS TO US, SO, YEAH.

UH, COMMISSIONER CIRCLING.

DO YOU WANT TO JUMP IN? UH, YEAH, SURE.

THE, UM, THERE IS, UM, I DUNNO IF IT WENT OUT, I SENT IT TO KIM, LIKE A COUPLE OF HOURS AGO, BUT, UH, I COULD PROBABLY SHARE MY SCREEN OR SOMETHING IF THAT WOULD WORK OR, UM, JUST KIND OF READ WHAT I HAVE SO THAT WE CAN ALL THINK ABOUT IT IF KIM WAS IN THE OFFICE TODAY.

GOT IT.

OKAY.

ALL RIGHT.

WELL, YEAH, SURE.

LET ME JUST PULL IT UP HERE.

SO I HAVE IT, UM, PROPERLY.

MY APOLOGIES.

OKAY.

UM, SO BASIC GIST OF IT IS, UH, PROVIDES COMPENSATION FOR A BAND'S DRIVE TIME, UNLOADING EQUIPMENT, STAGING EQUIPMENT, SOUNDCHECK, BREAKING DOWN AND LOADING OUT, UM, PROVIDING, UM, THE, AND THIS IS JUST LIKE A, LIKE A RUDIMENTARY THING THAT WE COULD ALL TALK ABOUT HERE, BUT, UH, PROVIDES REQUIRED PARKING VALIDATION FROM MEMBERS OF BAND, INCLUDING ALL BARON STAFF PROVIDES EASY ACCESS FOR VOTING IN AND LOADING OUT OF ALL GUARANTEE.

COMPREHENSIVE MATTER THAT'S COMMUNICATED AS PART OF THE BAND'S RIDER CONTRACT, UM, GIVES ALL MEMBERS HAVE BEEN PERMITTED ACCESS TO PARK AND DOESN'T NEED THE DESIGNATED LOADING AREAS WITHOUT RISK OF BEING ISSUED A TICKET OR A REQUIRED SERVICE.

UM, AND IF A TICKET IS ISSUED BY THE CITY OF AUSTIN TO A MEMBER OF THE BAND OR BAND STAFF, UM, THEY WILL HAVE THE RIGHT TO OF COURSE, APPEAL THAT AND HAVE THAT CITATION REMOVED FROM THE RECORD.

UM, THIS, THE, THE HAY CUP, THE COMPENSATION PORTION OF IT BASICALLY IS, IS DESIGNATING AN HOUR OF TIME, 30 MINUTES FOR LOADING IN 30 MINUTES OF LOADING OUT, UM, AT ANY, UM, VENUE IN THE ETJ OR MSA.

THAT'S WHAT I HAVE SO FAR.

UM, YEAH, SO, UH, CAMP, UM, KIM IS NOT HERE AS THERE.

ERIC IS DOING LIKE DOING TWO JOBS TONIGHT, BUT YEAH.

ERICA, COULD YOU WEIGH IN ON THAT OR LIKE PROCEDURALLY WHAT'S POSSIBLE.

WE ARE, AS YOU KNOW, THERE IS THE MUSICIAN LOADING AND UNLOADING, UM, SECTIONS OF DOWNTOWN, ESPECIALLY.

OKAY.

ERICA IS, UH, MIKE IS NOT WORKING SICK.

YEAH.

YEAH.

OKAY.

ALL RIGHT, GUYS, COMING UP TO THE PODIUM AND THIS IS WORKING.

OKAY.

HELLO, ERICA SHANLEY MUSIC AND ENTERTAINMENT DIVISION MANAGER.

SO AS YOU KNOW, THE MUSICIAN LOADING AND UNLOADING, UH, SECTIONS ARE DOWNTOWN, BUT MANY HAVE MOVED OR HAVE HAD TO MOVE BECAUSE OF CONSTRUCTION OVER THE YEARS SINCE THEY WERE FIRST IN PLACE.

SO KIM MCCARSON HAS REACHED OUT TO THE AUSTIN TRANSPORTATION DEPARTMENT TO GET AN UPDATE ON WHERE THE MAP IS LIKE, WHAT ARE THE REMAINING, UH, AREAS THAT IT'S ALLOWED, BECAUSE WE WILL HAVE TO DO BASED ON HOW THE TRAFFIC FLOWS HAVE CHANGED.

YOU KNOW, WHAT'S WHAT NOW WITH, UH, THE LAST 15 YEARS OF CONSTRUCTION OF EVALUATING WHERE THOSE AREAS WOULD NEED TO BE FOR THE MUSICIAN LOADING AND UNLOADING, UH, PERMIT AREAS.

AND SO OF COURSE WE ALWAYS DO TRY TO KEEP IT.

AND, UH, AND THIS IS FOR THE DOWNTOWN AREA.

WE TRIED TO KEEP IT, UH, CLOSE TO THE PARTICULAR VENUES WHERE YOU SEE A LOT OF TRAFFIC, A LOT OF TURNOVER IN TERMS OF ADVANCE, YOU KNOW,

[00:05:01]

LOADING IN AND OUT.

SO WE'LL JUST HAVE TO SEE WHAT ATD SAYS.

SO APPARENTLY THE PERSON WHO HAD BEEN WORKING THERE ON THIS HAS RETIRED, AND SO THEY HAVE TO ASSIGN SOMEBODY IN THE DEPARTMENT FOR IT.

AND SO WE JUST NEED TO FOLLOW UP WITH THEM ON NEXT STEPS.

UM, I DON'T KNOW THIS GOING TO INVOLVE A STUDY OR ANYTHING LIKE THAT.

THEY MAY KNOW JUST BY LOOKING AT THE MAP AND WHERE, UH, HOW CONSTRUCTION HAS BEEN GOING OR COULD BE GOING WITH PLANNING, UH, OF WHERE A GOOD LOCATION WOULD BE FOR THE LOADING ZONES.

OKAY.

WELL, YEAH, SO THAT SOUNDS LIKE SOMETHING, IF SCOTT CAN FOLLOW UP IN AN EMAIL AND THEN YOU CAN FORWARD THAT.

SO THAT'S JUST THE PARKING KIND OF LOGISTICS IN TERMS OF, UM, WHEN WE'RE THINKING ABOUT HOW MUCH TIME THE MUSICIANS ARE BEING PAID FOR.

UM, SO WE'VE BEEN TALKING ABOUT PERFORMANCE TIMES SPECIFICALLY, PREVIOUSLY, BUT COULD WE ADD SCOTT SAYING HALF AN HOUR ON EITHER END? YEAH.

DOES THAT SEEM WELL, CURRENTLY WHAT WE'RE DOING IS ALWAYS ROUNDING UP.

SO EVEN IF THERE IS 15 MINUTES OF THE NEXT HOUR OR JUST 15 MINUTES PERIOD, THEY GET ROUNDED UP TO AN HOUR.

AND SO WE WOULD HAVE TO LOOK AT THE BUDGETING JUST TO SEE WHAT THE SITUATION IS.

WHAT'S THE LOAD IN AND LOAD OUT TIME, LIKE FOR SOMETHING LIKE THE MUSIC PROCLAMATIONS, THEY DO WAIT AROUND SOMETIMES FOR THEIR AGENDA ITEM TO COME UP OR FOR THE LUNCH TO COME UP SO THEY CAN PERFORM.

AND, UM, I WOULD LIKE TO BE ABLE TO PAY, YOU KNOW, KIND OF MORE FOR THEIR TIME OF WAITING BECAUSE SOMETIMES THEY HAVE TO TAKE A DAY OFF OF WORK JUST TO BE ABLE TO DO THAT, UH, EVENT FOR OTHER EVENTS.

WE'LL JUST HAVE TO, I JUST NEED TO KNOW WHAT THEY ARE AND GAUGE IT FOR.

LIKE OUR STREET PERFORMANCE PROGRAM IS PRETTY EASY SET UP.

I MEAN, YOU, YOU KNOW, YOU JUST KIND OF COME IN AND, AND, AND PLAY.

AND SO WE COULD TALK ABOUT LIKE, UH, YOU KNOW, IF THERE'S AN EXTRA FOR STREET PERFORMANCE PROGRAM, WE GIVE AN EXTRA 30 MINUTES OR HOUR, AND I WOULD PREFER ALWAYS TO ROUND UP THE HOUR.

UM, EVEN IF WE DECIDED IT'S AN EXTRA HOUR FOR TRANSPORTATION AND LOADING IN AND LOADING OUT, WE'LL JUST HAVE TO LOOK AT THE BUDGET, LOOK AT HOW MANY, YOU KNOW, MUSICIANS WE HAVE, HOW MANY PERFORMANCE OPPORTUNITIES AND WORKED WITH SYNOVIA ON THE BUDGET, JUST TO BE SURE THAT, UM, WE CAN DO IT BECAUSE WE WANT TO SPREAD THE WEALTH AS MUCH AS WE CAN WITH THE $200 PER MUSICIAN PER HOUR, THAT'S A PERFORMANCE HOUR.

UH, SO WE JUST NEED, I THINK, EVALUATE, AND MAYBE DO SOME ENGAGEMENT ON HOW MUCH TIME IS NEEDED, HOW MUCH MORE MONEY IS NEEDED AND THEN CONSIDER OUR BUDGET.

OKAY.

YEAH, YEAH.

THAT, THAT KIND OF BRINGS, BRINGS UP A QUESTION FOR ME, WHICH IS, UH, ARE YOU SCOTT, ARE YOU PROPOSING THAT THIS EXTRA HOUR THAT WE'RE TACKING ON WOULD BE AT THE SAME RATE OF AN EXTRA $200 FOR THIS? YEAH, BECAUSE IT COULD BE A LOADED MUSICIAN SO THAT, LIKE, I, YOU KNOW, OBVIOUSLY I WANT MUSICIANS TO GET PAID AS MUCH AS POSSIBLE, BUT THINKING ABOUT SPREADING THE WEALTH, IF YOU'RE HIRING A BAND FOR WHAT WOULD HAVE BEEN AN HOUR PERFORMANCE OR A 45 MINUTES SET, THAT'S ROUNDED UP TO AN HOUR OR WHATEVER, YOU'RE JUST DOUBLING, YOU'RE DOUBLING THE FEE FOR THE BAND JUST BY ADDING THE LOADING THING.

AND THAT SEEMS LIKE IT WOULD LIMIT THE AMOUNT OF MUSICIANS.

AND I MEAN, LIKE GETTING AN EXTRA $200 PER PERSON FOR, UH, FOR TRAVEL AND LOADING IN TOWN TO ME IS LIKE WAY MORE THAN I WOULD CHARGE A PRIVATE CLIENT OR ANYTHING.

YEAH, SCOTT.

YEAH.

SO, UM, AND, AND I, AND I LEFT THIS PART OF IT OUT THE, THE, THAT 30 EXTRA MINUTES WOULD JUST BE FOR EITHER A BANK, LIKE AN ENTITY, BASICALLY.

SO IF IT'S, FOR INSTANCE, LAUREN GOLD, THAT'S PERFORMING THEN BORN GOLD.

WE GET THAT.

BUT IF IT'S THE, HER BAND, THEN IT WOULD JUST BE FOR THE ENTIRE BAND.

IT WOULD NOT BE FOR THE MUSICIAN PER HOUR.

THAT THAT'S, YEAH.

THAT WOULD JUST BE FOR LIKE, BASICALLY ONE ACT WOULD GET AN EXTRA 30 AT THE EXTRA HOUR, UM, OR BOTH THE LOAD IN LOAD OUT TIME.

OKAY.

THEN I WOULD JUST ENCOURAGE US TO FIGURE OUT WHAT THAT NUMBER IS, WHAT IS IT, YOU KNOW, WHAT DOES THAT MEAN? EXACTLY.

AND CAUSE YOU MAY ALSO HAVE SEVERAL MUSICIANS COMING IN WITH DIFFERENT LOADING AND DRUMS FROM ONE CAR AND OTHER STUFF FROM ANOTHER CAR.

SO, UM, LET'S JUST BE THOUGHTFUL AND EVALUATE WHAT WE'RE TALKING ABOUT SO THAT IT DOES SEEM FAIR, YOU KNOW, FOR WHOEVER REALLY IS GOT THE BRUNT OF THE, OF THE LOADING IN AND OUT, BECAUSE I WOULD LIKE TO SEE BETTER PARKING WE'RE WORKING ON THAT WE'VE BEEN KIND OF, WE FINALLY GOT TO THAT POINT WITH ATD JUST TO UNDERSTAND THAT THERE WAS NO ONE DOING IT BECAUSE THAT PERSON HAD LEFT.

AND SO I'D LIKE TO SEE HOW MUCH WE CAN GET IN TERMS OF PERMANENT, YOU KNOW, TEMPORARY PARKING PERMITS, WHERE'S THAT ACCEPTABLE.

WHAT CAN

[00:10:01]

WE DO TO MAKE IT AS EASY AS POSSIBLE SO THAT IT ISN'T JUST LOADING AND DRUMS OVER FIVE BLOCKS.

THAT JUST SOUNDS HORRIBLE.

AND SO THAT'S WHAT I WANT TO BE MORE MINDFUL OF IS MAKE IT REALLY CONVENIENT, UH, AND PAY FOR SURE, BUT ALSO, YOU KNOW, MAKE IT AS CONVENIENT AS POSSIBLE FOR PEOPLE TO LOAD IN AND OUT.

YEAH.

SO MAYBE IT'S JUST, UM, AN ADDITIONAL FEE, LIKE A LOAD IN AND TRANSPORTATION FEE PER, SO IT'S NOT PER PERFORMER PER HOUR, BUT IT'S A FEE FOR THE PERFORMANCE.

THAT'S LIKE A HUNDRED BUCKS, 150 BUCKS.

SO WE CAN EVALUATE THAT AND, UH, TALK TO YOU GUYS AND MAYBE, UH, IF YOU COULD ALSO TALK TO FELLOW MUSICIANS AND SEE WHAT WOULD REALLY BE HELPFUL IF IT IS MAYBE $150 ONE-TIME FEE, UH, WE CAN TOTALLY, YOU KNOW, WE WANT TO HEAR THAT FEEDBACK AND SEE WHAT, WHAT REALLY WOULD HELP.

YEAH.

UM, YEAH, WE CAN DEFINITELY DO THAT.

I WOULD ENCOURAGE EVERYBODY TO REACH OUT TO THEIR NETWORKS AND ASK ABOUT THAT.

AND THEN GRAHAM, YOU HAD BROUGHT UP ALSO SPEAKING OF FEES, LIKE I CAN'T HOW A CANCELLATION FEE COULD FEASIBLY WORK.

UM, YEAH.

YEAH.

AND I HAVE SOME SERVE SPECIFIC IDEAS, BUT ALSO JUST A CONVERSATION ON HOW WE CAN GET TO SOMETHING THAT'S MORE CODIFIED OR, OR, UH, YOU KNOW, UH, HOW WE COMPENSATE WHEN THINGS ARE CANCELED.

UH, UH, WE PAID THEY'RE CANCELED AND WE DON'T RESCHEDULE, PEOPLE GET PAID.

SO IT'S AN FYI FOR US.

YEAH.

OKAY, PERFECT.

SO I DIDN'T KNOW IF WE HAD THAT POLICY IN PLACE OR NOT.

THAT'S GREAT.

AND THEN I'M JUST GOING TO SECOND THAT I LIKED THE IDEA OF A ONE SINGLE FEE FOR THE BAND.

AND THEN THE BAND HAS TO FIGURE OUT WHO IS DOING THE LOADING.

WE DO, YOU KNOW, I THINK ALL OF US DO SHOWS WHERE SOME PEOPLE GET THEIR HOURS EARLY TO SET UP AND DO ALL SORTS OF DETAIL WORK.

AND THEN, YOU KNOW, WE JUST DID A, DID A SHOW WITH BUNCH OF HORN PLAYERS AND, YOU KNOW, THE TROMBONIST SHOWS UP TWO SECONDS OR LITERALLY AT SOUNDCHECK TIME PULLS OUT THEIR TRAUMA AND THEY'RE READY TO GO.

THERE IS NO REAL LOADING AND THEY'RE NOT, YOU KNOW, THEY'RE NOT LIKE A DRUMMER OR A BAND LEADER OFTEN KEEPS A BIG VEHICLE THAT THEY HAVE TO MAINTAIN.

AND, UH, BECAUSE THEY'RE CARRYING SO MUCH GEAR AND THEN THE PLAYERS WHO HAVE THE LIGHTER INSTRUMENTS, UH, DON'T HAVE TO MAINTAIN THAT VEHICLE TO HAVE LOWER COSTS.

UH, ANYWAY, I THINK WE'RE ALL SORT OF ON THE SAME PAGE NOW CLARIFIED A BIT.

UM, I, I DID HAVE A QUESTION.

THIS WAS FOR SCOTT TOO, AND THEN YOU PROBABLY HAVE AN ANSWER BUSINESS.

OKAY.

I'M TRYING TO, YOU MENTIONED DRIVE TIME.

CAN YOU TELL ME WHAT YOU WERE THINKING IN TERMS OF THAT? AH, YEAH, THAT GRAND THAT'S.

UM, I THINK I WAS JUST KIND OF INCLUDING THAT IN THE ENTIRE, LIKE WROTE IN LIKE, YOU KNOW, PUT OUT OF TIME.

SO IT WOULD BE PRETTY MUCH THE SAME.

GOT IT.

IT, OKAY.

OKAY.

SO YEAH, LIKE I KNOW THAT WE WERE WORKING TOGETHER ON AN I, I PUT IT TOGETHER THIS MORNING AND UH, I THOUGHT IT MAY HAVE GONE OUT, SO I'LL, I'LL SEND IT OUT TO EVERYONE.

I APOLOGIZE ABOUT THAT.

NOT AT ALL.

THIS IS GREAT.

IT'S MUCH CLEARER NOW.

THANK YOU.

YES, SIR.

OKAY, GREAT.

AND YEAH, KIM, KIM WILL PROBABLY SHE'LL BE ABLE TO SEND THAT OUT.

UM, I JUST WANT TO NOTE, THIS IS, I THINK THE FIRST MEETING THAT I'VE EVER BEEN AT THAT KIM HASN'T BEEN AT, SHE'S ALWAYS HERE.

SO WE'RE ALL LIKE WHAT WHERE'S CAM, BUT, UM, SHE'S THAT WAY AND MANY OTHER WAYS, BUT YEAH, SHE'LL PROBABLY SHE'LL DISTRIBUTE THAT.

I BET LATER THIS WEEK AND SCOTT, AND THANK YOU SO MUCH FOR WRITING SOMETHING UP THAT REALLY HELPS, I THINK, CLARIFY THINGS FOR EVERYBODY.

AND THEN LET'S, SO LET'S READ THROUGH THAT WHEN WE GET IT DISTRIBUTED BY CAM LET'S EVERYBODY REACH OUT TO YOUR MUSICIAN NETWORK AND JUST ASK THE QUESTION, UM, YOU KNOW, WHAT'S FAIR FOR HOW MUCH TIME DO YOU NEED BLOATING AND LOAD OUT OR, OR HOWEVER YOU WANT TO PUT THOSE OUT.

I JUST WANNA SAY, LIKE, I'M NOT A MUSICIAN, SO I'M NOT SURE HOW THE BEST WAY TO WORD THESE THINGS, BUT I WILL REACH OUT TO MY NETWORK AS WELL.

AND THEN LET'S TRY TO GET BACK TO ERICA WITH THE FEEDBACK WE GET, UM, IN A COUPLE OF WEEKS, LIKE BY, UM, THE MIDDLE OF THIS MONTH.

AND THEN ERICA HAS SAID THAT SHE'S GONNA DO HER HOMEWORK FOR US ON THAT SOME RESEARCH.

AND THEN I THINK BY NEXT MEETING, WE CAN GO THROUGH THOSE THINGS QUICKLY AND MAKE, UM, A CONCRETE PLAN GOING FORWARD.

ANOTHER THING THAT WOULD BE HELPFUL IS THAT THE LOADING AND UNLOADING PROGRAM CONCENTRATED ON DOWNTOWN AND RED RIVER, IF THERE ARE OTHER AREAS THAT WE'RE STARTING TO SEE THAT WE REALLY NEED HELP IN THIS AREA, THAT'S ANOTHER POINT OF ENGAGEMENT WE WOULD LOVE TO SEE IS TO HEAR, YOU KNOW, IF IT ISN'T JUST DOWNTOWN, WHERE ELSE WOULD THIS TYPE OF SUPPORT BE NEEDED? OH YEAH, THAT'S GREAT.

THAT'S GREAT TO THINK ABOUT IF THERE WERE TO THINK ABOUT THIS IN GEOGRAPHIC ZONES AND JUST MORE HOLISTICALLY, BECAUSE THERE MAY BE SOME AREAS THAT, UH, AUSTIN

[00:15:01]

TRANSPORTATION WAS LIKE, OH, THAT'S EASY.

WE CAN FIGURE IT OUT.

AND THERE COULD BE OTHER AREAS THAT ARE MORE PROBLEMATIC.

SO I WANT TO BE SURE THAT, YOU KNOW, THAT WE'RE COVERING ALL OF OUR BASES AS, BECAUSE SOME THINGS COULD TAKE LONGER THAN OTHERS.

OKAY.

ALL RIGHT.

UM, IF IT, DOES ANYBODY HAVE ANYTHING ELSE BEFORE WE MOVE ON? I HAVE ONE MORE QUESTION.

SORRY.

SO IF WE'RE TALKING, WHEN WE'RE TALKING ABOUT THE LOADING AND UNLOADING ZONES, ARE WE TALKING ABOUT, SORRY FOR JUST ANY PERFORMANCE AROUND THE CITY IN GENERAL, ARE WE SPECIFICALLY TALKING ABOUT THE CITY PERFORMANCE? OH NO, NO, NO.

FOR ANYTHING THERE, THOSE ARE INTENDED FOR, UH, TO HELP SERVE VENUES AND MUSICIANS THAT ARE PLAYING IN THOSE VENUES.

AND SO AS WE KNOW, VENUES HAVE SOME HAVE STAYED, PUT SOME HAVE MOVED AROUND AND SO WE JUST NEED TO KIND OF REEVALUATE.

THAT'S HOW I WAS SAYING THAT THERE MAY BE AS A STUDY, I WOULD NEED TO TALK TO AUSTIN TRANSPORTATION JUST TO SEE WHAT THEIR PROCESS WOULD BE BECAUSE THEY'RE ACTUAL POSTED SIGNS, WHICH ARE PRETTY, IT'S A HARD PROCESS TO GET THESE POSTED SIGNS.

AND THEN THE VENUES GIVE THEM TEMPORARY PERMITS THAT THEY PUT IN THEIR WINDSHIELD AND THE, AND THE SIGNED OFF AREAS.

SO, UH, WE SHOULD DEFINITELY GO AND REEVALUATE BECAUSE A LOT OF THOSE HAVE BEEN REMOVED BECAUSE OF JUST THE CHANGING, YOU KNOW, FACE OF AUSTIN.

SO WE SHOULD LOOK AT THAT AGAIN.

THE REASON I ASKED IS BECAUSE IT SEEMS LIKE IT, EXCUSE ME, IS MAYBE KIND OF TWO DIFFERENT THINGS, JUST LIKE THIS ITEM HAS MAYBE LIKE KIND OF TWO DIFFERENT THINGS.

LIKE WE'VE GOT THE, UM, THE PEACE OF THE CITY PERFORMANCES AND COMPENSATING MUSICIANS FOR THEIR TRAVEL AND LOADING, WHATEVER.

AND THEN WE ALSO HAVE THE MORE LIKE CITYWIDE GENERAL LOADING, UNLOADING ZONES.

THAT'S SEPARATE FROM THE, I JUST, I JUST WANTED TO CLARIFY THAT BECAUSE IT MIGHT HELP, UM, FOR US TO KIND OF SEPARATE THOSE IN OUR NORMAL YEAH, DEFINITELY BECAUSE IT'S THE LOADING ZONES, LIKE I SAID, THEY'RE POSTED CITY SIGNS THAT ARE PERMANENT CHANGES TO WHAT, WHAT PARKING IS THERE.

AND SO THERE'S A LOT THAT GOES INTO DETERMINING THE NUMBER OF PARKING SPOTS AND WHAT WE CAN USE AND CAN'T USE.

COOL.

THANK YOU.

OKAY, GREAT.

WELL, UM, SO WE WE'LL COME BACK TO THIS NEXT MONTH AT OUR SEPTEMBER MEETING, WHICH WILL BE THE MONDAY AFTER LABOR DAY.

AND SO

[3. Discussion and possible action on Austin Convention Center renovation, expansion and music industry role following presentation by Katy Zamesnik, Chief Administration Officer, Austin Convention Center.]

NOW WE'LL MOVE ON TO ITEM THREE AND I'M SO EXCITED ABOUT THIS BECAUSE KATIE HAS BEEN TRYING TO GET TO OUR MEETING FOR A WHILE.

AND, UM, UH, SHE IS WITH THE AUSTIN CONVENTION CENTER.

AND SO THIS IS DISCUSSION AND POSSIBLE ACTION ON AUSTIN CONVENTION CENTER, RENOVATION EXPANSION, AND THE MUSIC INDUSTRY ROLE IN ALL THAT.

AND KATIE SEMEST, NICK IS THE CHIEF ADMINISTRATION OFFICER WITH THE AUSTIN CONVENTION CENTER.

SO THANK YOU SO MUCH FOR BEING HERE.

UH, KATIE, AND I'M EXCITED TO HEAR WHAT YOU HAVE TO TELL US ABOUT THE PLANS.

YEAH, ABSOLUTELY.

UM, AND I ACTUALLY HAVE, UM, MY DIRECTOR, TRICIA TEACHER HERE WITH US AND SHE'S GOING TO BE DOING A PRESENTATION FOR YOU.

OKAY, WONDERFUL.

YEAH, WE'LL TAKE IT AWAY.

THANKS.

WE HAVE THE PRESENTATION AVAILABLE.

I THINK I SENT IT IN, IF NOT, I CAN SHARE MY SCREEN, ERIKA.

OKAY.

I WILL UP, THERE WE GO.

OKAY.

TRISHA, IT'S ALL YOU GREAT.

THANK YOU SO MUCH, KATIE.

GOOD EVENING COMMISSIONERS AGAIN.

I'M TRISHA TANTRUM, THE DIRECTOR OF THE AUSTIN CONVENTION CENTER.

WE'RE JOINED BY KATIE.

MESNICK THE CONVENTION CENTER'S CHIEF ADMINISTRATIVE OFFICER, AND WE'D LIKE TO DISCUSS OUR REDEVELOPMENT AND EXPANSION PROJECT WITH YOU TODAY.

UM, CAN YOU ADVANCE THE SLIDES, KATIE? PERFECT.

UM, TODAY'S BRIEFINGS GOING TO GO QUICKLY OVER THE HISTORY OF THE PROJECT AND THE PROOF OF CONCEPT THAT WE DEVELOPED FOLLOWING THE END OF NEGOTIATIONS WITH THE PROPERTY OWNERS TO THE WEST, UM, AND SOME PROJECTS CONSIDERATIONS AS WELL AS A BRIEF DISCUSSION ON THE FINANCING AND THE HILTON BOND INDENTURE.

UM, AND THEN WE WILL CLOSE WITH NEXT STEPS FOR OUR PROJECT.

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

FOLLOWING THIS SEVERAL REPORTS AND STUDIES WERE CONDUCTED THROUGH 2019, UH, WHEN THE CITY COUNCIL FORMALLY APPROVED AN ORDINANCE, UH, RAISING THE MUNICIPAL HOTEL OCCUPANCY TAX RATE OR THE HOT TAX BY 2% IN SUPPORT OF AN EXPANSION FOLLOWING COUNCILS, UM, APPROVAL OF THAT 2% INCREASE CONVENTION CENTER STAFF WORK TOWARDS THE MASTER PLAN UPDATE AND AN ECONOMIC IMPACT STUDY TO CONFIRM THE VIABILITY OF OUR EXPANSION PROJECT.

THESE REPORTS WERE RELEASED IN AUGUST OF 2020, AND WE WERE PRESENTED

[00:20:01]

AND WERE PRESENTED TO COUNCIL IN SEPTEMBER OF THAT YEAR.

UH, BEFORE I CONTINUE, I DO WANT TO ACKNOWLEDGE A PROCESS THAT, UH, WE DID NOT INCLUDE IN THIS TIMELINE.

UH, THAT'S THE APPROVAL OF THE CITY MANAGER TO ENTER NEGOTIATIONS WITH PROPERTY OWNERS TO THE WEST, WHICH COUNCIL GAVE IN NOVEMBER OF 2020 STAFF BEGAN THOSE 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 REQUIREMENTS FOR THE CONVENTION CENTER WITHIN THE EXISTING PROPERTY LINE THAT WAS UNDER THE DEVELOPER'S CONTROL.

AND IT ALSO EXCEEDED, UM, ANTICIPATED COSTS AS A RESULT OF THIS DECISION.

THE CONVENTION CENTER BEGAN DUE DILIGENCE EFFORTS ON THE REMAINING OPTIONS FOR EXPANSION EVALUATING AND EXPANSION WITHIN THE CURRENT SITE OF THE EXISTING CONVENTION CENTER, UH, THAT WOULD NOT ONLY DELIVER A LARGER, MORE EFFICIENT FACILITY WITHIN A SMALLER FOOTPRINT, BUT IT WOULD ALSO REALIZE THE GOALS OF THE UT STUDY, THE CONVENTION CENTER, MASTER PLAN UPDATE, AND THE POND DISTRICT RESOLUTION, THE CENTER WITH THE ASSISTANCE OF OUR CONSULTANT TEAM HAS DEVELOPED A PROOF OF CONCEPT THAT BEARS OUT THIS GOAL.

AND THAT'S WHAT WE WOULD LIKE TO TALK TO YOU ABOUT SHORTLY.

NEXT SLIDE PLEASE.

SO IN ORDER TO MINIMIZE THE PROJECT DELAYS AND BUDGET IMPACTS TO THE REDEVELOPMENT AND EXPANSION PROJECT, WHILE WE FINISHED THE FINANCING OPTIONS, STAFF TOOK FORTH AT RCA ON JUNE 10TH, 2021 TO THE, ON THE COUNCIL AGENDA THAT REQUESTED THAT THE COUNCIL IMPROVE FOR THE USE OF ACMR CONSTRUCTION MANAGER AT RISK METHODOLOGY FOR CONTRACTING AND A PROJECT DELIVERY METHOD FOR THIS PROJECT IN TANDEM TO THIS ITEM, COUNCIL PASSED A RESOLUTION WHICH PROVIDED FURTHER DIRECTION FOR ELEMENTS TO INCLUDE IN THE RFQ FOR ARCHITECTURAL AND ENGINEER ENGINEERING SERVICES.

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

UM, IN ADDITION TO STEADY STAFF, UH, WE'VE BEEN WORKING DILIGENTLY TO INCORPORATE THAT, THAT DIRECTION INTO THE FINAL RFQ, UH, WHICH SHOULD BE READY TO RELEASE SHORTLY.

NEXT SLIDE, PLEASE.

THANK YOU.

AT THIS BRINGS US TO THE PROJECT ITSELF.

I NOTED PREVIOUSLY THAT THE CONVENTION CENTER WILL BE A LARGER AND MORE EFFICIENT FACILITY WITHIN A SMALLER FOOTPRINT.

THE OVERALL PROJECT WILL DELIVER AN ACTIVE AND COMMUNITY FRIENDLY EVENT FACILITY THAT ENHANCES THE CULTURALLY RICH FABRIC OF THE PALM DISTRICT.

AND THE PLAN ALSO, UH, WE HOPE THAT THIS PLAN WILL ALSO REMOVE THE BARRIERS THAT ARE CURRENTLY THE, UH, THE EXISTING CONVENTION CENTER IN THIS QUADRANT OF DOWNTOWN THE CHART ON THE RIGHT SHOWS, THE CURRENT RENTABLE SQUARE FOOTAGE OF THE CONVENTION CENTER, THE TARGET SQUARE FOOTAGES CALL FOR IN THE MASTER PLAN UPDATE.

AND THE MINIMUM THAT WE WILL ACHIEVE UNDER THE NEW CONSTRAINTS COMBINED WERE NEARLY DOUBLING THE AVAILABLE RENTABLE SPACE.

AND WE'RE EVEN GOING BEYOND THE MASTER PLAN TARGET AS A, UM, A LARGE PART OF THIS INCREASE IS ATTRIBUTABLE TO THE MEETING SPACE ALLOCATIONS AND THE TRENDS THAT WE'VE SEEN FROM OUR EVENTS THAT ARE CALLING FOR A HIGHER AMOUNT OF MEETING SPACE, ALONG WITH MORE, UH, FLEXIBLE SPACES AS WELL.

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

NEXT SLIDE, PLEASE.

OUR CONSULTANT TEAMS HAVE TAKEN THE PROOF OF CONCEPT AND HAVE 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 FROM THE EXPANSION OR THE EXPANDED CONVENTION CENTER IS ESTIMATED TO BE AT OVER $280 MILLION A YEAR.

NEXT SLIDE PLEASE.

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

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

IT LIMITS THE GROUND LEVEL PUBLIC INTERACTION.

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

NEXT SLIDE PLEASE.

[00:25:04]

AND HERE'S WHAT WE COULD BUILD ON OUR SITE.

I WANT TO STRESS THAT THIS IS NOT A DESIGN OF THE BUILDING, BUT THIS 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 FUNCTIONS AS WELL AS MANY OF THE RETAIL AND COMMUNITY SPACES.

THAT FACILITY WILL BE LARGER THAN 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'VE HEARD VERY CLEARLY THAT WAS DESIRED FROM COUNCIL AND THE COMMUNITY IN THIS PROOF OF CONCEPT, THE EXHIBIT HALL SPACES ARE UNDERGROUND SPANNING THE FULL LENGTH OF THE SITE.

WE'VE ALSO MOVED TO THE LOADING DOCKS UNDERGROUND ALONG RED RIVER, OLIVIA GETTING 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 FOR US TO REOPEN SECOND AND THIRD STREETS TO MULTIMODAL TRAFFIC, AND IT HELPS 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 THE DOWNTOWN AREA, INCLUDING PROJECT CONNECT AND THE VISION FOR THE PALM DISTRICT.

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

WE ALSO WANT TO NOTE THAT THE PROOF OF CONCEPT ENVISIONED THE PHASED APPROACH TO THE EXPANSION PROJECT, BUT WE'VE ALSO LOOKED AT IT FROM ONE PHASE PROJECT AS WELL.

AND THE DESIGN PROCESS WILL BE WHERE WE ULTIMATELY DECIDE AND MAKE THAT DECISION.

NEXT SIDE, PLEASE.

THIS SLIDE HELPS TO VISUALIZE THE POTENTIAL PUBLIC BENEFITS THAT WILL BE REALIZED AND THE REDEVELOPMENT AND EXPANSION OF THE CONVENTION CENTER, OUR GOAL IS TO BRING THE 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, HELPING TO ACTIVATE THAT STREET.

UM, IT WOULD BE AVAILABLE FOR COMMUNITY EVENTS AND GATHERINGS AND A PLACE FOR OUR 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.

AND AGAIN, YOU CAN SEE THAT THE STREET GRID HAS BEEN REOPENED TO MULTI-MODAL TRAFFIC.

NEXT SLIDE, PLEASE.

ONE OF OUR OUTSTANDING QUESTIONS RELATED TO THIS PROJECT WAS THE FINANCING WE'VE WORKED DILIGENTLY WITH 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 THE HOTEL OCCUPANCY TAX, THE 2% EXPANSION HUT AND THE CONVENTION CENTER REVENUES.

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

NEXT SLIDE PLEASE.

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

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

UH, WE WILL BE ALLOWED TO RELEASE THE RFQ ONCE A RESOLUTION IS ACHIEVED.

NEXT SLIDE PLEASE.

SO THE NEXT STEPS FIRST, WE WILL RELEASE THE RFQ FOR ARCHITECTURE AND ENGINEERING SERVICES.

A FEW MONTHS AFTER THAT, WE RELEASE AN RFP FOR CONSTRUCTION SERVICES.

THESE CONTRACTS WILL GO BACK TO COUNCIL APPROXIMATELY SIX MONTHS AFTER ISSUANCE, AND THEN THE DESIGN PROCESS WILL BEGIN IN EARNEST.

WE'RE HAPPY TO COME BACK TO THIS COMMISSION AT ANY POINT DURING THE PROCESS TO UPDATE YOU ON OUR WORK.

AND WE ALSO LOOK FORWARD TO WORKING WITH THE MUSIC COMMUNITY, UM, AS WE'RE DESIGNING THIS A THOUGHTFUL COMMUNITY AND A COMMUNITY SPACE AND CONVENTION CENTER.

SO IN CLOSING, I WANT TO THANK YOU FOR YOUR ATTENTION TO THIS TODAY AND, UH, WITH THAT,

[00:30:01]

UH, KATIE AND I ARE HAPPY TO TAKE ANY QUESTIONS YOU MIGHT HAVE.

GREAT.

THANK YOU SO MUCH.

UM, YEAH, SO COMMISSIONERS, DID ANYBODY WANT TO LEAD OFF WITH QUESTIONS? I'M SURE WE ALL HAVE SEVERAL.

SO LAUREN, DID YOU WANT TO GET US GOING, UM, WHERE TO BEGIN? UH, SURE.

UM, WELL, DO YOU HAVE ONE IN MIND? I'LL GO.

SO I HAVE, THANK YOU.

THANK YOU FOR THE PRESENTATION.

UM, VERY HELPFUL.

UM, YOU MENTIONED INCREASED, UM, SIGNIFICANT INCREASE DOLLAR AMOUNTS, UM, FUNDS FROM, OR, UM, I GUESS ECONOMIC EXPANSION FROM THE, UH, UH, CONVENTION CENTER.

WHAT ARE THE, UM, THE PRIMARY DRIVERS FOR, UH, THE INCREASE IN REVENUE? WELL, ULTIMATELY WHEN WE INCREASE THE SIZE OF OUR FACILITY, DEFINITELY IN THE SIZE, WE'LL BE ABLE TO BRING IN A SIGNIFICANTLY LARGER EVENTS AS WELL AS MORE EVENTS TO THE CITY.

UM, ULTIMATELY, UH, THE CONVENTION CENTER'S JOB IS TO FILL THAT SUNDAY THROUGH THURSDAY BUSINESS, UH, WITH OUT OF TOWN, UH, THE BUSINESS TRAVELERS.

SO THE INTENT WOULD BE, UH, THAT IF WE'RE BRINGING MORE VISITORS INTO TOWN DURING THE WEEK, THAT THAT WILL DRIVE THE AVERAGE DAILY RATE OF HOTEL ROOMS DURING THAT TIME PERIOD.

UM, AND SO THEN THE LEISURE TRAVEL, UH, THAT WE GET ON THE WEEKENDS IN ADDITION TO THE INCREASED, UH, BUSINESS TRAVEL DURING THE WEEK WILL LEAD TO AN INCREASE IN HOTEL OCCUPANCY TAX, WHICH CAN, UH, THEN FUNNELS DOWN AND LEADS TO AN INCREASE IN HISTORIC PRESERVATION, LIVE MUSIC, FUN, CULTURAL ARTS.

OKAY.

AND, UM, THANK YOU.

I, I, UM, SO YOU MENTIONED THE LARGER SPACE IN A SMALLER FOOTPRINT A COUPLE OF TIMES, IF YOU COULD PLEASE ELABORATE ON HOW THE TRANSLATE.

SURE, ABSOLUTELY.

SO RIGHT NOW, UM, OUR CONVENTION CENTER, UH, IS AT STREET LEVEL AND THEN IT GOES UP TO THREE WORKFORCE STORIES, DEPENDING ON WHICH SIDE OF THE FACILITY YOU'RE ON.

UM, ULTIMATELY WHAT OUR INTENTION IS, IS TO GO UNDERGROUND.

UM, AND WE ARE GOING TO PUT OUR LOADING DOCKS AND OUR SERVICE YARD AND OUR EXHIBIT HALLS UNDERGROUND.

UH, AND THAT WILL ALLOW US, UH, SOME SPACE ON THE STREET LEVEL TO OPEN UP TO RETAIL AND COMMUNITY ENGAGEMENT.

AND THEN WE'RE GOING TO GO VERTICALLY STACKED, UM, ABOVE THAT.

AND SO OUR MEETING ROOMS AND BALLROOMS AND, UH, UH, WE'LL BE ON SECOND, THIRD, FOURTH LEVELS AND ABOVE.

SO THAT WILL GIVE US THE OPPORTUNITY TO DOUBLE THE SIZE BECAUSE OUR EXHIBIT HALLS WILL BE UNDERGROUND AND IT WILL GIVE US THAT CONTIGUOUS SPACE THAT WE NEED.

UM, AND THEN WE HAVE THE ABILITY TO GO VERTICALLY.

UM, CURRENTLY OUR EXISTING CONVENTION CENTER, OUR EXHIBIT HALLS ARE ON THE FIRST LEVEL AND THEY'RE COLUMN-FREE.

SO WE, THE BUILDING STRUCTURALLY WAS NOT DESIGNED IN A WAY THAT IT CAN GO VERTICALLY ON ITS EXISTING STRUCTURE.

SO IN ORDER TO DO THAT, WE WOULD NEED TO DEMOLISH THE ENTIRE FACILITY, PUT OUR EXHIBIT HALL TO UNDERGROUND, ACTIVATE THE STREETS, UM, AT STREET LEVEL, AND THEN BUILD THE EXISTING, THE ADDITIONAL SPACE THAT WE NEED FOR MEETING ROOMS AND BALLROOMS, UM, VERTICALLY.

AND THAT WOULD HAVE, THAT WOULD BE HOW WE GET TO DOUBLE THE SQUARE FOOTAGE OR ALMOST DOUBLE THE SQUARE FOOTAGE.

THANK YOU.

THANK YOU SO MUCH.

UM, AND THIS IS, I REALLY LIKED THE, UH, THE IDEA OF OPENING THOSE STREETS UP, UM, AS WELL, THAT'S, THAT'S, UM, REALLY INTRIGUING.

UM, AND I KIND OF WANTED TO, UH, ELABORATE ON A NAGA VOLLEYS QUESTION WITH, UH, WHENEVER, UH, BASICALLY IT SOUNDS LIKE, AND IF YOU BUILD IT, THEY WILL COME KIND OF SITUATION.

LIKE WE'RE GOING TO MAKE MORE SPACE FOR MORE CONVENTIONS AND THEREFORE WE WILL HAVE MORE CONVENTIONS.

I'M JUST WONDERING IF, UH, DO YOU GUYS HAVE ANY DATA TO SUPPORT THAT THERE IS REALLY THE, THAT THERE'S THE DEMAND FOR THAT, THAT, THAT WE WILL BE ABLE TO ACTUALLY FILL THAT SPACE WITH, UH, WITH MORE PEOPLE, UM, BECAUSE IT'S, IT'S, I'VE, I'VE GOTTEN SOME INFORMATION THAT LEADS, UH, AND THAT LEADS ME AND, AND OTHERS TO BELIEVE THAT THERE MAY NOT BE THAT DEMAND, UH, AND THAT IT MAY IN FACT BE DECLINING AND ALSO JUST IN LIGHT OF THE PANDEMIC AND THE FACT THAT, YOU KNOW, WE'RE, WE'RE NOT FULLY RECOVERED FROM THAT YET.

AND IT WON'T BE A FEW YEARS BEFORE WE REALLY KNOW, UH, WHAT THE, THE LANDSCAPE OF TRAVEL AND CONVENTIONS WILL BE.

UM, I'M JUST CURIOUS WHERE, WHERE YOU GUYS, UH, ARE AT WITH THE ANTICIPATION OF DEMAND.

SURE.

SO, UH, WE HAD HBS DO AN ECONOMIC IMPACT STUDY FOR US WHILE WE WERE UNDERGOING, UM,

[00:35:01]

AS I SAID EARLIER, WHEN WE SHIFTED FROM NEGOTIATIONS WITH THE PROPERTY OWNERS TO THE WEST, AND WE SHIFTED TO LOOK AT OUR EXISTING FOOTPRINT.

UM, SO WE HAD A STUDY, UH, THAT WAS DONE DURING THAT TIME.

AND THAT STUDY OVERWHELMINGLY, DID SHOW THAT THERE WAS STILL A DEMAND, UM, FOR A LARGER EXPANDED CONVENTION CENTER.

ADDITIONALLY THERE'S CONVENTION CENTERS ACROSS THE COUNTRY, UH, WHO ARE MOVING FORWARD WITH THEIR EXPANSION PROJECTS AS WELL IN ANTICIPATION OF THE MARKET'S FULL RECOVERY.

I CAN TELL YOU THAT SINCE WE STARTED HOSTING EVENTS AGAIN FROM THE CLOSURE FROM COVID, UH, THAT ARE, UH, THAT ARE EVENTS THAT HAVE COME BACK TO US, UM, HAVE, UH, ALTHOUGH THE ATTENDANCE NUMBERS STARTED OFF SLOW IN THE BEGINNING, UM, OVER THE LAST SIX TO NINE MONTHS, WE'RE LOOKING, UH, AT EVENTS THAT HAVE A NUMBERS THAT ARE BACK AT THEIR ATTENDANCE NUMBERS, WE'RE EXCEEDING THAT.

UM, AND SO THE TREND IN THE F AND THE INDUSTRY OVERWHELMED IS OVERWHELMINGLY, UH, THAT THE, UH, THE VIRTUAL WAS GOOD WHILE IT LASTED, BUT THEN ULTIMATELY PEOPLE WANT TO MEET IN PERSON.

THEY WANT TO BE EDUCATED IN PERSON.

THEY WANT TO, UH, HAVE THAT HUMAN INTERACTION WITH ONE ANOTHER.

AND, UH, SO YOU CAN SEE THAT THE LEISURE BUSINESS, UH, THE LEISURE TRAVEL IS RETURNED, UM, AND REBOUNDED VERY WELL IN AUSTIN.

AND SO IS THE CONVENTION IN BIZ AND MIDWEEK BUSINESS.

UM, AND YOU CAN SEE THAT AS SIGNIFICANTLY IN SOME OF THE EVENTS THAT WE'VE HAD MOST RECENTLY, UH, YOU CAN SEE THE INCREASE IN THE, UH, AVERAGE DAILY RATE OF THE HOTEL OF THE HOTELS WHEN WE HAVE, UH, CONVENTIONS IN TOWN VERSUS WHEN THEY'RE NOT IN TOWN.

UM, SO I WOULD POINT YOU TO THE HBS STUDY, WHICH I'M HAPPY TO SHARE, UM, WITH YOU, I BELIEVE THAT IT'S PUBLIC INFORMATION AND ON OUR WEBSITE AS WELL.

YEAH.

DO YOU HAVE A QUESTION? YEAH.

UM, THIS JUST, UM, I MEAN, SOMETHING FOR US TO THINK ABOUT IS, UM, IF I, IF I THINK ABOUT THE CONVENTION CENTER IN THE CONTEXT OF MUSIC, UM, SOUTH BY SOUTHWEST BRINGS IN SIGNIFICANT HOTEL OCCUPANCY TO THIS TOWN, TO THE CITY.

AND SO ONE OF THE WAYS TO, IN MY MIND, UH, ONE OF THE THINGS TO CONSIDER DEFINITELY IS THE EXPANSION OF THE CONVENTION CENTER POTENTIALLY LEADS TO EXPANSION OF SOUTH BY SOUTHWEST OR, OR FOLKS COMING INTO TOWN THROUGH SOUTH BY SOUTHWEST.

SO THERE ARE A LOT OF EVENTS HAPPENING IN TOWN, BUT STILL THERE ARE THESE KEY MUSIC FESTIVALS IN TOWN THAT ARE PRIMARY DRIVERS TO BRINGING IN REVENUE AND BUILDING, YOU KNOW, AND BRINGING IN A HOTEL OCCUPANCY INTO THE CITY.

AND I THINK THAT SHOULD BE A CONSIDERATION FROM THE PERSPECTIVE OF JUST IF I LOOK AT IT FROM THE CONTEXT OF MUSIC AND HOW SIGNIFICANT THAT FESTIVAL IS, HOW SIGNIFICANT THE, THE HOTEL OCCUPANCY THAT, UH, POTENTIALLY EXPANDING THE CONVENTION CENTER AND EXPANDING, UH, UH, THE, THE, UH, SOUTH BY SOUTHWEST THROUGH THAT, UM, WOULD, WOULD HAVE AN IMPACT.

I THINK THAT'S IMPORTANT TO CONSIDER.

AND I THINK ALL OF THIS WILL ALSO TRANSLATE TO GREATER, UH, TAXES, UH, FOR MUSIC.

SO, UM, JUST SOMETHING TO, UM, UH, CONSIDER IN THIS, IN THIS CONTEXT FROM A MUSIC PERSPECTIVE.

THANK YOU.

ABSOLUTELY.

YEAH, I HAD ONE, OH, SORRY.

I JUST GOT ONE LITTLE, UH, DEVIL'S ADVOCATE, UH, A QUESTION TO FOLLOW UP.

UM, SO IN, IN CASE THE NUMBERS, DIDN'T, UM, DIDN'T MEET EXPECTATIONS IN CASE ATTENDANCE DIDN'T MEET EXPECTATIONS.

UM, WHAT WOULD BE, WHAT WOULD HAPPEN, WHAT WOULD HAPPEN IF, UM, IF THE REVENUE GENERATED WAS, WAS FAR BELOW WHAT WAS EXPECTED? YOU KNOW, THIS BEING A MULTI-BILLION DOLLAR PROJECT, I'M JUST CURIOUS, WHAT WOULD BE THE CONSEQUENCES IF THAT WERE THOSE PROJECTIONS WERE NOT, THAT'S A REALLY GREAT QUESTION.

I APPRECIATE THAT COMMISSIONER.

UM, SO AS WE WORK ON THIS HBS STUDY, UM, YOU KNOW, WE ARE COMING OUT OF A PANDEMIC AND WE MADE SURE THAT, UH, THE DATA THAT WE WERE USING, WE WERE USING CONSERVATIVE NUMBERS, UM, AND FACTS, UH, THE NUMBERS THAT WE, YOU KNOW, THAT WE ABSOLUTELY HAD FROM, FROM THE PAST.

UM, ADDITIONALLY, WHEN WE'VE ASKED THEM TO PROJECT OUT WHAT THE HOTEL OCCUPANCY TAX WOULD BE, UM, UH, YOU KNOW, THROUGHOUT THE COURSE OF, UM, THE RECOVERY FROM COVID FOR THE NEXT COUPLE OF YEARS.

AND IN ADDITION TO, YOU KNOW, UH, WHAT THE HOTEL OCCUPANCY TAX SHOULD BE BASED ON, YOU KNOW, IF WE DOUBLE IN SIZE, UM, THAT GIVES US SOME OPPORTUNITIES TO HAVE CHECKS AND BALANCES.

AND SO, AS WE'RE LOOKING AT OUR BUDGET YEAR OVER YEAR, THAT WE'RE SUBMITTING TO THE CITY COUNCIL FOR CONSIDERATION, UM, YOU KNOW, WE'RE LOOKING AT THAT HOTEL OCCUPANCY, UH, GROWTH.

AND SO, UH, YOU KNOW, WE'RE, WE'VE BEEN VERY DILIGENT AND LOOKING AT THAT AND CONSERVATIVE IN OUR NUMBERS.

ADDITIONALLY, THE, UM, COST FOR CONSTRUCTION HAS A LARGE AMOUNT OF CONTINGENCY IN

[00:40:01]

THAT, AND WE WILL BE DESIGNING THE FACILITY, UM, IN SUCH A WAY THAT WE'LL BE ABLE TO TOUCH BASE WITH THESE NUMBERS, UH, YEAR AFTER YEAR AFTER YEAR.

UM, BECAUSE WE, WE DO NOT, WE ANTICIPATE THAT WE WILL BE DESIGNING THIS PROJECT, UM, EARLY NEXT YEAR.

AND THAT GIVES US EVERY QUARTER THAT THAT GOES BY, THAT GIVES US A COMPARISON TO, UH, THE NUMBERS THAT WE'VE BUDGETED.

SO WE WILL BE ABLE TO TAKE A LOOK AT THAT AND MAKE SURE THAT AS WE'RE DESIGNING THIS FACILITY, WE'RE DESIGNING IT TO A PRICE TAG THAT WE CAN FIT AND WE CAN AFFORD.

I HOPE THAT ANSWERS YOUR QUESTION, KATIE, BE HAPPY TO CHIME IN, UM, IF SHE HAS ANY ADDITIONAL COMMENT.

YEAH, I THINK THAT WAS ALL REALLY GREAT.

I THINK THE ONLY OTHER PIECE THAT I JUST SORT OF WANT TO MENTION IS THAT ATTENDANCE NUMBERS ARE NOT NECESSARILY THE ONLY METRICS THAT WE'RE LOOKING AT FOR THE SUCCESS OF THIS PROJECT.

ONE PERSON IN THE DOOR DOES NOT EQUAL, YOU KNOW, NECESSARILY A CORRESPONDING AMOUNT IN HOTEL TAX.

AND SO WE ARE FOCUSED ON AS A BUSINESS, UM, YOU KNOW, MAKING SURE THAT WE ARE MAXIMIZING HOTEL TAX THAT COMES IN AND THAT FLOWS TO ALL OF THE OTHER BUCKETS.

SO, YOU KNOW, THAT IT SUPPORTS NOT ONLY THE CONVENTION CENTER, BUT ALSO THE LIVE MUSIC FUND, CULTURAL ARTS AND HISTORIC PRESERVATION AS WELL.

AND SO THAT'S THE FOCUS REALLY.

UM, AND, AND SO WHILE ATTENDANCE IS A USEFUL METRIC, IT'S NOT THE ONLY ONE THAT WE FOCUS ON.

UM, AND IF IT'S MORE ABOUT WHAT TRISHA WAS TALKING ABOUT WITH THAT MID WEEK BUSINESS, THAT OTHERWISE WOULDN'T EXIST AND THE COMPRESSION OF THE HOTEL ROOMS. UM, AND SO THERE IS ALSO A LARGE CONTINGENT, UM, YOU KNOW, I KNOW THAT THERE IS CONVERSATION ABOUT NUMBERS THAT HAVE BEEN PROVIDED IN THE PAST FROM THE CONVENTION CENTER.

UM, UNFORTUNATELY WITHOUT ALL OF THE CONTEXT THAT NEEDED TO BE PROVIDED AROUND THOSE NUMBERS, THERE'S A SIGNIFICANT FOCUS ON BOOKING OUTSIDE THE BLOCK AS IT'S KNOWN.

UM, AND SO WHATEVER NUMBERS WE HAVE WE KNOW ARE NOT ALWAYS FULLY COMPLETE BECAUSE THERE IS THAT ELEMENT THAT IS INCLUDED IN THAT.

UM, AND SO WE'RE HAPPY TO KIND OF FOLLOW UP IN WRITING.

UM, IF YOU HAVE SOME OTHER QUESTIONS, UM, THAT MORE SPECIFICALLY SURROUNDING THAT, UM, ADDITIONALLY GOING BACK TO WHAT A COMMISSIONER SAID A FEW MOMENTS AGO ABOUT SOUTH BY, YOU KNOW, GROWING INTO A LARGER VENUE AND THAT BRINGING MORE MUSIC TO THE CITY, JUST BASED ON THAT ONE EVENT, UM, THERE ARE NUMEROUS MUSICAL EVENTS, UH, THROUGHOUT THE COUNTRY, UH, NAM BEING ONE OF THOSE, WHICH IS THE NATIONAL ASSOCIATION OF, UM, MUSIC MAKERS.

AND, UH, SO WE'VE HAD THEM FOR A NUMBER OF YEARS UNTIL THEY JUST FLAT OUT OUTGREW US, COULDN'T SQUEEZE THEM IN OUR FACILITY AND THERE, UM, IN THE WAY THAT THEY OPERATE THEIR EVENT.

UM, AND SO THERE'S GREAT OPPORTUNITY OUT THERE TO BRING BACK SOME OF THOSE MUSIC CONVENTIONS, COMPETITIONS, UM, THAT, THAT WE'VE HAD HISTORICALLY.

UM, AND SO THERE, THERE WILL BE AN OPPORTUNITY THROUGH A LARGER FACILITY TO, TO BRING SOME ADDITIONAL MUSIC TO THE, TO OUR CITY, UH, THROUGH SOME OF THESE CONVENTIONS.

AND SO WHAT IS THE ESTIMATED TOTAL PROJECT COST AT THIS TIME? SO THE PROJECT COST AT THIS TIME IS, UM, ESTIMATED TO BE BETWEEN 1.2 AND 1.4 BILLION.

AGAIN, I WILL SAY THERE'S A LOT OF CONTINGENCY BUILT INTO THOSE NUMBERS BECAUSE WE DO NOT HAVE OUR DESIGN TEAM OR OUR ENGINEERING AND CONSTRUCTION FIRMS ON CONTRACT YET.

UM, SO THAT, THAT IS A HIGH NUMBER, UM, THAT WE HAVE TO REFINE AS WE GO THROUGH THE DESIGN PROCESS.

OKAY.

OKAY.

AND THEN THERE'S STILL, UM, THERE'S YOU MENTIONED THE BOND, THE EXISTING BOND.

SO THAT'S FOR CURRENT DEBT, THAT'S HER DEBT ON THE EXISTING CONVENTION CENTER, CORRECT? THAT RUNS, YEP.

THAT IS CORRECT.

THAT'S ON THE ORIGINAL EXPANSION WAS COMPLETED, I BELIEVE IN 2001.

OKAY.

UM, AND SO CAN YOU HELP US UNDERSTAND, UM, HOW HOW'S THE CONSTRUCTION COSTS? IT SOUNDS LIKE THERE'S, SO CAN YOU HELP US UNDERSTAND THAT BONDING PROCESS AND WILL THAT PROCESS BE THE SAME FOR THE NEW CONVENTION CENTER AND HOW IT GETS PAID BACK OVER TIME? SO I CAN'T SPEAK TO THE PREVIOUS, UM, BONDING PROCESS.

I WAS NOT HERE OR EVEN AT THE CITY.

UM, AT THAT TIME FOR THIS ONE, WE WILL BE WORKING WITH OUR, UH, OUR OUTSIDE FINANCIAL CONSULTANTS, UM, THAT THEY WILL DO KIND OF JUST AS THEY DO ALL OF THE BONDING.

UM, ALL OF THE DEBT ISSUANCES IN THE CITY WILL, IT'LL BE A PHASED APPROACH.

WE'RE NOT GOING TO SELL 1.2 BILLION RIGHT UPFRONT.

UM, WE ARE ANTICIPATING IN FACT, IN ORDER TO FIND SOME SAVINGS THAT WE WILL CASH FUND, UM, AS MUCH AS WE CAN IN THE BEGINNING STAGES TO KIND OF SPREAD OUT HOW WE NEED TO ISSUE THE DEBT.

SO WE'LL, IT'LL BE A PHASED APPROACH.

UM, WE'LL ISSUE IT KIND OF AS WE NEED.

UM, AND IT WILL BE PAID BACK.

THE PLEDGE IS BEING 2% EXPANSION HOTEL TAX THAT THE AUSTIN CITY COUNCIL APPROVED IN AUGUST OF 2019, UM, AS WELL AS THE FOUR AND A HALF, THAT THE BALANCE OF THE FOUR AND A HALF PERCENT THAT THE CONVENTION CENTER GUESTS FROM, UM, THE 7%.

[00:45:01]

OKAY.

UM, SO JUST GOING BACK TO COMMISSIONER, GOLD'S QUESTION ABOUT IF PR ACTUALS AND PROJECTIONS AREN'T THE SAME.

SO IF, UM, FOR SOME REASON, IF, UH, THE PROJECTED HOTEL OCCUPANCY TAXES AREN'T AS HOPED, DOES THAT START TO, UM, AS THEY'RE PAYING, AS WE'RE PAYING BACK THE BOND, DOES THAT START TO WITH B WOULD WE STILL GET A DEDICATED STREAM TO MUSIC, ARTS AND PRESERVATION, OR WOULD SOME OF THAT, IS THAT DEPENDENT ON LIKE, WHAT'S BASICALLY IN THE BANK FOR A TOXIC TEXANS COMING IN THE FUNDING, THE 15, SO OF THE 2%, UM, THAT WAS APPROVED BY CITY COUNCIL, THE CONVENTION CENTER TRANSFERS THE EQUIVALENT OF 15% OF THAT 2% TO LIVE MUSIC AND 15% OF THAT, 2% TO HISTORIC PRESERVATION, IF, IF, IF AN EXPANSION IS NOT PURSUED.

UM, SO IF, IF FOR WHATEVER REASON, WE DECIDE NOT TO GO FORTH DOWN THIS PATH, UM, AND I'M NOT A LAWYER, SO WE WOULD CERTAINLY NEED THE MORE LEGAL OPINION ON THIS.

IT IS MY UNDERSTANDING THAT IF WE HALT PLANS TO PROCEED FORWARD WITH THAT EXPANSION, THE 2% CAN NO LONGER BE COLLECTED.

AND THEREFORE THE CONVENTION CENTER WOULD NO LONGER TRANSFER THAT ADDITIONAL FUNDING.

UM, THE EQUIVALENT OF THAT 15% OF THE 2% TO THE LIVE MUSIC FUND AND HISTORIC PRESERVATION.

SURE.

YEAH, THAT MAKES SENSE.

SO I GUESS WHAT I'M SAYING IS IF WE, IF WE GO FORWARD WITH THE EXPANSION AND OR WHEN WE GO FORWARD WITH THE EXPANSION, UM, I THINK A CONCERN FOR ME IS JUST MAKING SURE THAT THE, THE EXPANSION COSTS ARE APPROPRIATE TO WHAT BUSINESS WE CAN BRING IN, SO THAT WE'RE NOT GOING INTO, YOU KNOW, LIKE WE'RE BEING ABLE TO PAY OFF OUR DEBT ON THE CONSTRUCTION COSTS AND STILL FUND ARTS AND MUSIC SO THAT WE DON'T, WE'RE NOT, WE'RE NOT LIKE BORROWING OR STEALING FROM THE ARTS AND MUSIC FUNDING LIKE THAT, THAT I THINK WOULD BE, THAT'S A, THAT'S A HUGE CONCERN FOR THE MUSIC COMMUNITY.

AND WE JUST WANT TO BE REASSURED THAT THERE, WE'RE NOT GOING TO BE LOSING, IT'S NOT A LOSING PROPOSITION AT SOME POINTS.

CORRECT.

SO THE, THE SCENARIOS THAT WE'VE BEEN RUNNING WITH OUR OUTSIDE FINANCIAL CONSULTANTS AND WITH OUR CORPORATE FINANCE OFFICE, UM, THEY SHOW THAT THAT, THAT FUNDING, THAT DEDICATED FUNDING IS, IS REMOVED FROM THE EQUATION.

SO WHAT WE'RE LOOKING AT WHEN IT, WHEN WE'RE RUNNING THE ANALYSIS ON OUR ABILITY TO ISSUE DEBT AND WHAT THAT NUMBER LOOKS LIKE HAS ALREADY TAKEN THAT INTO CONSIDERATION.

UM, AND SO THAT IS THAT IT WAS A COMMITMENT FROM THE CONVENTION CENTER AND, AND WILL CONTINUE, UM, UNLESS OBVIOUSLY THE 2% IS NO LONGER BEING COLLECTED.

OKAY.

THAT'S GOOD.

YEAH.

THAT'S GOOD.

UM, DID ANYBODY ELSE HAVE QUESTIONS ON THE FINANCIAL PART? YEAH, GO AHEAD.

UH, SO, AND AGAIN, THANK YOU FOR THE PRESENTATION.

I, I THINK THAT THE, UM, HOW MUCH WAS THE TOTAL COST FOR THE INFRASTRUCTURE? AGAIN, OUR CURRENT CONSTRUCTION COST IS ABOUT 1.2 TO 1.4 BILLION.

OKAY.

UH, SO, SO ONCE THAT'S COMPLETE, IT WOULD BE VERY SAFE TO ASSUME THAT THAT PROPERTY VALUE WOULD DRIVE UP A LOT OF OTHER PROPERTY VALUE IN THE SURROUNDING AREA.

IS THAT CORRECT? AND QUITE POSSIBLY, I'M NOT QUALIFIED TO SPEAK TO THAT, UNFORTUNATELY.

UM, I THINK THAT THE AMENITIES THAT WE WILL HAVE DOWN THERE, I THINK WILL CERTAINLY BE MORE ATTRACTIVE.

UM, BUT WE, WE HAVE NOT REALLY BEEN LOOKING INTO OUR IMPACT ON THE SURROUNDING COMMUNITIES KNOWING.

I MEAN, IF YOU LOOK, YOU HAVE THE BLUE LINE COMING OF TRINITY, UM, A LOT OF OTHER, UH, PROPERTIES ARE GOING UNDER CONSTRUCTION IN THE NEXT COUPLE OF YEARS IMMEDIATELY SURROUNDING OUR FACILITY AS WELL.

SO IT'S, IT'S A LITTLE TOUGH TO QUANTIFY THAT.

RIGHT.

AND, AND, AND TO YOUR POINT, UH, THERE, UH, I THINK, I BELIEVE AT OUR LAST MEETING, WE HAD, UM, A DEVELOPER FROM, UM, SIXTH STREET COME IN AND THEY WERE TALKING ABOUT, UM, MAKING SURE THAT THEY'RE GONNA KEEP WITH THE PRESERVATION AND, AND, AND HISTORIC PRESERVATION AND STUFF.

AND, UM, BUT BASICALLY THE, SOME OF THE BARS THERE WOULD NO LONGER BE BARS.

IT WOULD BE HIGH RISES INSTEAD.

AND THE MEETING BEFORE THAT ON FOURTH STREET, THE WAREHOUSE DISTRICT IS BASICALLY THE SAME KIND OF THING.

AND SO AS A MUSICIAN THAT PLAYS MUSIC IN THE CITY, UM, IT, IT, YOU KNOW, IT'S, IT'S ALREADY INCREASINGLY MORE DIFFICULT FOR MUSICIANS TO FIND ROOMS TO PLAY IN.

UM, WITH TICKETED SHOWS, THE ROOMS ARE GETTING MORE EXPENSIVE TO PLAN, OBVIOUSLY WITH COVID AND OTHER VENUES KIND OF BEING CLOSED DOWN AND WHATNOT,

[00:50:01]

AND SOME REOPENING, SOME NOT, UM, IT'S I THINK, YOU KNOW, AND I, AND I APPRECIATE COMMISSIONER GOULD QUESTIONING ON THIS BECAUSE IT IT'S KIND OF, IT RAISES FLAGS.

IT, YOU KNOW, IN MY OPINION, AND I THINK THAT I KNOW THAT PART OF THE LIVE MUSIC, A BIG CHUNK OF THE LIVE MUSIC FUNDING, WHY THIS EVEN EXISTS IS BECAUSE OF THE FACT THAT WE HAVE THE, THE HOTEL OCCUPANCY TAX COMING FROM THE CONVENTION CENTER IN THE FIRST PLACE, HOWEVER, THAT WAS, YOU KNOW, BEFORE A PANDEMIC.

AND SO, I MEAN, THE, THE COST OF THIS VERY MUCH CONCERNS ME BECAUSE IT BASICALLY MEANS THAT THE BARS THAT ARE ALREADY STRUGGLING OR HAVE BEEN STRUGGLING TO, YOU KNOW, MAYBE, YOU KNOW, GET IN THE BLACK OR STAYING IN THE BLACK OR BEING A BLACK COMFORTABLY OF YOU NEED TO BE, UM, WE'LL HAVE THAT MUCH MORE OF A DIFFICULT TIME DOING THAT.

AND IF THIS CONVENTION CENTER IS BUILT, THE, YOU KNOW, IT'S GOING TO BE NICE TO GET THAT, TO REAP THE BENEFITS OF THAT EXTRA HOTEL OCCUPANCY TAX, BUT IT WON'T REALLY BE ANYTHING IF WE DON'T HAVE ANYWHERE TO PLAY.

SO, UM, I THINK THAT'S A CONCERN OF MINE AND, YOU KNOW, I REALLY THANK YOU ALL FOR THE PRESENTATION.

AND, UM, I JUST, I DON'T KNOW, I KIND OF WANT TO, UM, LEARN MORE ABOUT WHAT WHAT'S HAPPENING AND, AND, AND HAVE MORE DIALOGUE WITH THE COMMISSIONERS AND SEE WHAT WE CAN DO.

SO, UM, AND I, THAT'S AN EXCELLENT POINT AND COMPLETELY HEAR THAT.

AND I DON'T KNOW, UM, IF YOU NOTICED ON ONE OF THE SLIDES THAT TRISHA WAS PRESENTING ON WAS SPEAKING TO THE COMMUNITY SPACE THAT WE'VE GOT KIND OF CARVED OUT IN THE PROOF OF CONCEPT RIGHT NOW, YOU KNOW, ONE OF THE, I THINK THE BIGGEST THING THAT WE HEARD KIND OF THROUGH ALL OF THESE CONVERSATIONS OVER THE LAST ALMOST DECADE IS HOW IMPORTANT IT IS THAT THIS BRING THE COMMUNITY BACK IN AS MUCH AS POSSIBLE.

AND SO, YOU KNOW, WE ARE NOT AN ACTIVE LIVE MUSIC VENUE AT THE MOMENT.

UM, BUT WHAT WE'RE TALKING, WHAT WE'RE LOOKING AT DOING ALONG RED RIVER WITH THAT GREEN SPACE AND WITH A DEDICATED COMMUNITY SPACE IN THE FACILITY, WILL BE ABLE TO GIVE US THAT OPPORTUNITY TO PROVIDE A SPACE THAT ISN'T NECESSARILY AT THE COMMERCIAL RATE, RIGHT? THAT IS THE ONE BENEFIT OF BEING A FACILITY THAT IS NOT OWNED IN THE PRIVATE SECTOR.

UM, AND SO THE OTHER BIG PIECE OF IT IS ONCE WE START DESIGNING IS THE ROBUST COMMUNITY ENGAGEMENT PROCESS THAT WE WILL ENGAGE, UM, THERE, THAT WE WILL EMBARK UPON.

UM, WE DON'T, WE KNOW THAT THERE ARE A LOT OF EMOTIONS THAT THERE ARE A LOT OF, UM, COMPETING PRIORITIES SURROUNDING THIS PROJECT.

AND WE WANT TO MAKE SURE THAT WE ARE BRINGING, WE ARE BRINGING FORWARD A PROJECT THAT THE COMMUNITY IS PROUD OF AND THAT THE COMMUNITY WANTS TO STAND BEHIND.

AND SO THAT'S, THOSE, THESE KINDS OF CONVERSATIONS ARE WHAT, WHEN TRISHA MENTIONED AT THE END OF HER PRESENTATION, THAT WE'RE HAPPY TO COME BACK, WE'RE HAPPY TO MEET WITH COMMISSIONERS ONE-ON-ONE, YOU KNOW, WHATEVER, HOWEVER, WE CAN DIVE INTO WHATEVER DETAILS THAT WE NEED TO TALK THROUGH.

AND HOWEVER, WE CAN TAKE THAT FEEDBACK AND INCORPORATE IT AS MUCH AS WE HAVE THE ABILITY TO, UM, AT THE END OF THE DAY, WE DO HAVE TO BUILD A FACILITY THAT WE CAN RENT, UM, AND THAT, THAT, AND THAT PENCILS OUT SO THAT WE, YOU KNOW, THAT WE'RE IN THE BLACK AS WELL.

UM, BUT WE, WE WANT THE COMMUNITY TO BE PROUD OF THIS FACILITY.

WE WANT TO GIVE BACK AND WE WANT TO MAKE THIS JUST A WORLD-CLASS INNOVATIVE, UM, PROJECT THAT ISN'T JUST LIKE EVERYTHING ELSE THAT'S BEEN HAPPENING.

SURE.

AND WHEN YOU SAY COMMUNITY SPECIFICALLY, UM, IS, CAN YOU DESCRIBE JUST BRIEFLY SOME OF THE DEMOGRAPHICS OF PEOPLE THAT YOU'VE BEEN TALKING TO? SO I CAN'T SPEAK TO, I ONLY CAME ON AND TRISHA AND I HAVE BOTH WORKED, STEPPED INTO THESE ROLES IN THE LAST, I THINK I STARTED ABOUT A MONTH BEFORE THE PANDEMIC HIT.

UM, SO, BUT I CAN CERTAINLY PULL UP SOME OF THE OLDER, UM, PROJECTS THAT WE HAVE THAT, UM, THE REPORTS AND THE, THE INFORMATION GATHERING THAT WAS DONE BEFORE, UM, WE HAVEN'T CRAFTED OUR FULL PROJECT YET, OR OUR FULL ENGAGEMENT, UM, PATH FORWARD YET WE'LL BE WORKING WITH OUR CORPORATE PIO OFFICE AND MOST LIKELY BRINGING IN A FIRM TO KIND OF HELP US.

BUT, UM, WE HAVE BEEN HEAVILY INVOLVED WITH THE PALM DISTRICT FOLKS AND ALL OF THE, ALL OF THE COMMUNITIES THAT THEY'RE INVOLVED WITH OF THE HOME DISTRICT PLANNING TEAM.

UM, AND SO WE'LL BE WORKING KIND OF WITH ANYONE AND EVERYONE THAT WANTS TO COME.

AND THAT'S WHY WE'RE, WE'VE BEEN COMING AND DOING ALL OF THESE COMMISSION MEETINGS TO TRY TO MAKE SURE THAT WE'RE TOUCHING ALL OF THE RIGHT, THE RIGHT GROUPS THAT NEED TO, THAT NEED TO BE INVOLVED WITH THIS SURE THING.

AND I THINK THE COMMISSION WOULD, WOULD LOVE TO SEE SOME OF THAT DATA THAT, THAT YOU'RE DESCRIBING THERE.

THAT WOULD BE AWESOME.

UM, BUT I THINK ONE LAST QUESTION ON MY END, AND THIS IS KIND OF GOING FURTHER WITH THE DEVIL'S ADVOCATE THING THAT COMMISSIONER GOLD WAS SAYING, UM, WHAT, SO WHAT HAPPENS IF YOU ALL BREAK GROUND AND, YOU KNOW, YOU KNOW, CHECK START GETTING RID OF MONEY, STARTS GETTING SPED AND, UM, THERE'S ANOTHER LOCK.

THERE'S ANOTHER LOCKDOWN.

THERE'S ANOTHER, YOU KNOW, 20, 20 PER SE,

[00:55:01]

WHAT HAPPENS AT THAT POINT? HONESTLY, THAT WOULD BE, UH, YOU KNOW, THERE'S A PART THAT WAS WISHING WE WERE UNDER CONSTRUCTION WHEN THE PANDEMIC HIT THIS FIRST TIME AROUND, BECAUSE WE DO HAVE TO CLOSE THE FACILITY AND WE DO HAVE TO TURN BUSINESS AWAY IN ORDER TO BUILD THIS FACILITY.

RIGHT.

AND SO, UM, YOU KNOW, IT'S, I THINK WE'VE SEEN NOW THAT WE CAN WEATHER THAT STORM.

AND, UM, AS TRISHA MENTIONED EARLIER, WE ARE BEING INCREDIBLY CONSERVATIVE IN OUR PROJECTIONS, UM, TO THE POINT OF FRUSTRATION ON SOME, UH, BY SOME, UM, WE WANT TO MAKE SURE THAT WE ARE ACCOMMODATING FOR THAT POSSIBILITY.

UM, WE DID TAKE A VERY LARGE HIT.

WE THANKFULLY, UM, WERE ABLE TO WEATHER IT, I THINK BETTER THAN WE PROBABLY THOUGHT AT SOME POINTS.

UM, YOU KNOW, BUT THAT IS, IT'S A RISK KIND OF WITH ANYTHING RIGHT THERE, THERE ARE ALWAYS RISKS INVOLVED AND WE'RE DOING EVERYTHING WE CAN FROM A FINANCIAL PERSPECTIVE TO MITIGATE THOSE RISKS.

AND THAT INVOLVES INFLATING, THE CONSTRUCTION COSTS BEING VERY CONSERVATIVE ON OUR FINANCIAL PROJECTIONS WITH HOTEL TAX, KIND OF LOOKING AT WHAT THE IMPACT WE NOW KNOW SORT OF WHAT AN IMPACT OF A PANDEMIC MIGHT BE ON HOTEL TAX COLLECTIONS.

RIGHT.

SO WE CAN MODEL THAT AS WE MOVE FORWARD.

UM, AND SO THERE ARE, YOU KNOW, IT IS NOT JUST TRICIA AND I GOING IN AND GOING UP TO NEW YORK AND FLYING UP TO THE BOND HOLDERS AND SAYING, PLEASE GIVE US MONEY.

IT IS, YOU KNOW, THERE ARE, THERE'S A TEAM OF FOLKS KIND OF AROUND US.

UM, AND IF, YOU KNOW, WE ARE SHUT DOWN AGAIN FOR A PERIOD FOR A PERIOD OF TIME, WE KNOW WE'LL WILL EMERGE FROM IT, UM, STRONGER.

AND WE, THAT WILL GIVE US KIND OF THE OPPORTUNITY TO, TO BUILD THE FACILITY WHEN THINGS WERE QUIET.

I DON'T KNOW IF TRISHA HAS ANY OTHER COMMENTS YOU'D LIKE TO MAKE NO, IT'D BE PRETTY MUCH SUMMED IT UP THINGS.

UM, SO WHAT IS THE CONSTRUCTION TIMELINE? UH, THE CONCERN, UH, SO WE DON'T HAVE A FIRM START DATE YET.

UM, BUT WE ANTICIPATE THE CLOSURE OF THE FACILITY TO BE A FOUR YEAR PERIOD OF TIME.

SO WE, WE KNOW THAT IT WILL TAKE ABOUT FOUR YEARS TO REBUILD THIS FACILITY.

UM, BUT WE, YOU KNOW, UNTIL WE GET THE RFQ OUT ON THE STREET AND WE GET OUR DESIGN TEAM ON BOARD, UH, AND OUR CONSTRUCTION TEAM, THEY'LL BE THE ONES TO HELP US, UH, DETERMINE, UH, WHAT YEAR WE WILL START.

OKAY.

UM, I MEAN, THAT'S TO BE EXPECTED THAT IT WOULD BE PROBABLY A PERIOD OF YEARS.

UM, BUT IT JUST WANTED TO ASK ABOUT THAT.

UM, SO I HAVE A QUESTION, WELL, FIRST OF ALL, I JUST WANTED TO SAY, YEAH, KATIE, IF YOU COULD SEND ME THE ECONOMIC IMPACT STUDY FROM YOUR, UM, THAT WAS DONE.

AND THEN I CAN SHARE THAT WITH OUR STAFF LIAISON TO SHARE WITH THE REST OF THE COMMISSION.

UM, AND THEN WE CAN DIVE INTO SOME OF THAT AND SEE WHAT SPECIFIC QUESTIONS WE HAVE, BUT I THINK THAT WOULD BE REALLY HELPFUL FOR EVERYBODY TO SEE THE DETAILS.

UM, AND THEN I HAD A QUESTION ON THERE, THE PROOF OF CONCEPT, UM, THE P THREE SPACE.

I DON'T ACTUALLY KNOW WHAT THAT MEANS, WHAT IS B3? SURE.

SO THAT WOULD BE A PRIVATE PUBLIC PARTNERSHIP.

SO WE OWN THE LAND.

UM, AND SO IT WOULD ESSENTIALLY BE A LONG-TERM LAND LEASE AND THAT WOULD BE RUN THROUGH REAL ESTATE SERVICES, UM, FOR THAT, UH, PORTION OF THE, OF THE LAND.

UH, AND THEN THERE COULD BE A PRIVATE PARTNER THAT WOULD DEVELOP, UH, THAT, UH, PORTION OF LAND, UH, VERTICALLY WITH OUR EXHIBIT HALLS, UM, UNDERGROUND.

SO IT WOULD BE A PRIVATE PUBLIC PARTNERSHIP BETWEEN THE CITY AND THE DEVELOPER.

SO THAT WOULD BE, THAT WOULD BE A TOWER WITH THE, OKAY, SO CONVENTION SPACE ON THE BOTTOM, AND THEN, SO IT WOULD BE OFFICES, HOUSING.

UM, SO IT COULD BE A MIX OF OFFICE SPACE.

UM, IT COULD BE A MUTE, UH, MIX OF HOUSING CONDOS, UM, AND THAT'LL BE WORKED OUT THROUGH THE PROCESS WITH REAL ESTATE SERVICES TO DETERMINE THE HIGHEST AND BEST USE FOR THAT SPACE.

OKAY.

AND SINCE IT'S, UM, CITY OWNED LAND, AND THIS IS, I WOULD SAY A TREND WITH CITY OWNED LAND WHERE HOUSING IS CONCERNED RIGHT NOW, UH, WHAT WOULD THE AFF