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[CALL TO ORDER]

[00:00:04]

MEETING OF THE MUSIC COMMISSION AND, UH, WE'RE AT AUSTIN ENERGY HEADQUARTERS TODAY.

THERE'S NO VIDEO TODAY, RIGHT? IT'S JUST AUDIO? NO, THERE IS VIDEO.

OH, THERE IS VIDEO.

OKAY.

ALRIGHT.

I DIDN'T KNOW IF I NEEDED TO PAINT A PICTURE FOR THE RECORDING.

UM, ALRIGHT.

AND SO I CALL US TO ORDER.

I'M, UH, VICE CHAIR PATTERSON VICE CHAIR, UH, OR CHAIR CHARLA IS, UM, ON THE WAY.

AND SO, DO WE HAVE ANY PUBLIC COMMENT TODAY? MM-HMM.

OKAY.

SO WE ARE GONNA MOVE, UH, APPROVAL OF THE MINUTES TO, UH, A LITTLE LATER WHEN, UH, THE CHAIR ARRIVES.

SO

[2. Presentation on musical performance by Peter Stopschinski, Music Commission Live Performance participant and Shelbi Mitchell, Program Coordinator, Music & Entertainment Division. ]

WE'LL GO AHEAD AND GET STARTED WITH STAFF BRIEFINGS.

OUR FIRST STAFF BRIEFING IS PRESENTATION ON MUSICAL PERFORMANCE BY, UH, PETER STOP, CHINKY MUSIC COMMISSION, LIVE PERFORMANCE PARTICIPANT, AND SHELBY MITCHELL, PROGRAM COORDINATOR, MUSIC AND ENTERTAINMENT DIVISION.

HI, COMMISSIONERS.

I'M JUST HERE TO, WE CAN LIKE WAIT FOR LIKE HALF A SECOND.

THANKS DAVID.

UM, JUST WANTED TO SHARE WITH EVERYBODY.

SHOUT OUT TO COMMISSIONER CASADA.

SHE OFFERED PETER FOR OUR NEXT ITERATION OF OUR LIVE MUSIC TAPING.

SO THIS IS JUST A PRESENTATION OF ONE SONG AS WE CONTINUE TO WORK ON THIS SERIES AS A WHOLE, BUT ENJOY.

YEAH.

SO, UM, HEY, SHELBY, YOUR MICROPHONE IS ON.

I DIDN'T, I SEE.

UM, BUT IT'S FINE.

AND BECAUSE IT'LL RE AIR.

AND SO, LIKE I SAID, THESE ARE JUST BIT OF WHAT THE CONS, BECAUSE THERE ARE PROJECT ARE SELECTING, NOMINATING ARTISTS PERFORM, PERFORMING WITH US IN COLLABORATION WITH OUR STAFF.

AND A THIS IS OUR, WE WERE ABLE TO DO TWO MORE PERFORMANCE MEETING.

HE'S A SECOND AND WE HAVE ANOTHER PERSON THAT'S GONNA, UM, NEXT MEETING.

WE ALREADY HAVE PENCIL.

UM, WE'LL BE RECORDING IN.

IT'S OKAY.

YOU CAN STOP IT.

SO, FOR , FOR THOSE THAT CAN HEAR, UM, WE'RE HAVING SOME TECHNICAL DIFFICULTIES WITH THE VIDEO, BUT, UM, THIS IS

[00:05:01]

JUST A BIT OF WHAT WILL RE-AIR.

AND SO THERE WILL BE AN OPPORTUNITY TO SEE THE FULL FINISHED PRODUCT, UM, WITH THE REST OF OUR AMAZING ARTISTS.

COMMISSIONERS, PLEASE CONTINUE TO GET YOUR NOMINEES IN.

THERE'S A FEW ARTISTS THAT I STILL NEED TO GET FROM SOME FOLKS.

RAY, I'LL TALK TO YOU.

BUT YEAH, THANK YOU SO MUCH TO COMMISSIONER CASADA FOR PETER HINKY.

UH, HE GAVE US A BEAUTIFUL PERFORMANCE ON SOME KEYS THAT IVORY, THAT BLACK AND IVORY.

WE LOVE IT.

AND HE DID AMAZING.

SO STAY TUNED.

COMMISSIONERS, I WILL EMAIL YOU FOR EVERYBODY ELSE.

STAY TUNED FOR AN AIRING OF THIS SERIES.

THANK Y'ALL SO MUCH.

SORRY FOR THE TECHNICAL DIFFICULTIES.

THANK YOU.

UM, WHAT ARE WE GONNA PLEASE? UH, YEAH.

CAN WE REDO IT AT THE VERY END OF THE MEETING? LET'S TRY YEAH.

IF WE CAN, IF IT'S ALL SORTED OUT BY THEN.

OKAY.

UM, BUT THE LOOKS LIKE THAT'S GONNA BE REALLY COOL.

UH, AND SO I'M GONNA HAND THINGS BACK OVER TO, UH, CHAIR CHARLA NOW.

THANK YOU.

UM, IS THERE ANYTHING ELSE NEEDED FOR THAT OR ARE WE GOOD TO CONTINUE? YEAH.

YEAH.

OKAY.

COOL.

SO WE NEED TO APPROVE, APPROVE THE MINUTES.

YEAH.

FIRST OF ALL, THANK YOU COMMISSIONER PATTERSON.

IT WAS, I GUESS WE DO THIS ONE TIME A YEAR, NOT WE, MAYBE I, UH, GO TO THE WRONG, WRONG PLACE.

.

UM, I THINK IT HAPPENED ONCE LAST YEAR AND, AND I LANDED AT SITTING HOME.

HAPPENS AT LEAST TO ONE OF US.

EVERY EVERYONE GETS A TURN.

YEAH.

YEAH.

UH, SO, BUT THANK YOU.

UM, WE CALL THE MEETING TO ORDER.

WE WENT TO ITEM NUMBER SECOND RIGHT.

STAFF BRIEFINGS.

OKAY.

WHEN THE MUSICAL PRESENTATION, I WOULD LIKE TO GO AHEAD AND, UH, WELCOME, UM, UH, COMMISSIONER RAY PRICE.

UM, AND, UM, ALSO, UM, A NOTE OF THANKS TO COMMISSIONER CHAKA MAHON FOR HIS SERVICE, UM, ON THE COMMISSION AND EVERYTHING THAT, UM, HE WAS ABLE TO HELP US ACCOMPLISH, UM, ON THIS COMMISSION.

UM, I THINK, UM, WE REALLY APPRECIATE HIS CONTRIBUTIONS THROUGH THIS COMMISSION TO OUR COMMUNITY.

UM, I WOULD LIKE TO JUST QUICKLY GIVE A MOMENT, UH, TO COMMISSIONER, UH, REPRISE TO INTRODUCE HIMSELF, WHICH DISTRICT, AND PLEASE TELL US A LITTLE BIT ABOUT YOURSELF AND WE'LL GO FROM THERE.

SURE.

THANK YOU SO MUCH AND PLEASURE TO BE HERE.

SO, UH, I'M REPRESENTING DISTRICT ONE, ASHA HARPER MADISON, AND I ACTUALLY AM, UH, I, I RUN A STUDIO IN EAST AUSTIN, UH, ON 11TH STREET ROSEWOOD, ACTUALLY INSIDE OF DORIS MILLER AUDITORIUM.

IT'S A WONDERFUL NONPROFIT MUSIC STUDIO CALLED NOTES FOR NOTES.

AND WE ARE A NATIONWIDE ORGANIZATION.

WE OVERSEE, OVERSEE 10 OR 11 DIFFERENT STUDIOS IN THE NATION.

BUT THE FOCAL POINT IS THE WORK THAT WE'VE DONE HERE IN AUSTIN, CAPITAL IMPROVEMENTS THAT WE'VE DONE IN DO MILLER.

UM, SO NATURALLY THIS IS JUST THE WONDERFUL FIT AND I'M HONORED TO REPRESENT DISTRICT ONE.

WE'VE DONE A LOT OF STUFF WITH THE MILLENNIUM AND, UH, UH, KENNY DO'S, BACKYARD VICTORY GRILL, ALL THOSE.

AND IF THOSE AREN'T FAMILIAR, UH, DORIS MILLER IS ONE OF THE HISTORIC SPOTS THAT WAS MADE AVAILABLE TO BLACK ARTISTS IN THE CHITLIN CIRCUIT DURING THE FORTIES AND FIFTIES.

SO IT'S AN HONOR, GREAT PRIVILEGE TO BE ABLE TO SERVE, UM, IN, IN THAT PART OF TOWN.

MYSELF, I'M A MUSICIAN.

NEED TO GET BACK OUT THERE.

I HAVEN'T PLAYED AS MUCH.

I'VE BEEN DOING MORE, MORE MANAGING AND THINGS OF THAT NATURE, BUT I'M A MUSICIAN MYSELF.

UM, AND SO I'VE WORKED WITH A FEW OF YOU IN THIS ROOM, BEEN ABLE TO SERVE ON, UM, PANELS WITH, WITH, WITH SOME OF YOU INDIVIDUALS.

SO IT'S A PLEASURE AND A GREAT GROUP OF FOLKS.

LOOKING FORWARD TO DOING SOME, SOME GREAT WORK WITH YOU ALL.

THANKS.

THANK YOU.

THANK YOU.

AND WELCOME AGAIN.

[APPROVAL OF MINUTES]

UM, WE'LL MOVE ON TO APPROVAL OF MINUTES.

UH, IF EVERYBODY HAD AN OPPORTUNITY TO REVIEW THE MINUTES FROM THE MAY 6TH MEETING OF THE MUSIC COMMISSION, IF SOMEBODY COULD PLEASE MOTION TO APPROVE.

YEAH, MOTION TO APPROVE.

ALL SECOND.

OKAY.

UM, ALL IN FAVOR.

SO MOTION FROM, UH, COMMISSIONER PATTERSON AND, UH, A SECOND FROM, UH, COMMISSIONER CASDA.

UH, MOVING ON TO STAFF.

UH, DID WE HAVE EVERYBODY IN OR DID YOU SORRY.

I YOU OKAY? I WASN'T QUITE SURE.

OKAY, THANK YOU.

I JUST WANTED TO MAKE SURE.

UH, MOVING ON TO STAFF BRIEFINGS.

UH, WE WILL, UH, MOVE TO AGENDA ITEM NUMBER

[3. Live Music Fund collections update by Kim McCarson, Program Manager, Music & Entertainment Division, Economic Development Department. ]

THREE, LIVE MUSIC FUND COLLECTIONS, UPDATE BY KIM MCC CARSON, PROGRAM MANAGER, MUSIC AND ENTERTAINMENT DIVISION EDD.

THANK YOU, KIM.

HELLO EVERYBODY.

IS MY MIC WORKING OKAY? YEAH.

SO IT'S THE PRESENTATION THAT LOOKS LIKE THIS.

THERE YOU GO.

ALRIGHT, YOU CAN GO ON TO THE NEXT SLIDE, PLEASE.

THANK YOU.

SO THIS PRESENTATION IS, UH, IS JUST A SHORT PRESENTATION THAT GIVES THE, UH, MOST RECENT UPDATE ON THE HOTEL

[00:10:01]

OCCUPANCY TAX FOR THE LIVE MUSIC FUND.

UH, SO NEW COMMISSIONERS, UM, UH, YOU'LL NOTICE THAT THERE'S A TWO COLUMNS ON HERE.

SO THE FIRST COLUMN IS LAST FISCAL YEAR, THE COLLECTIONS RATE FOR LAST FISCAL YEAR.

OUR FISCAL YEAR IS OCTOBER 1ST THROUGH SEPTEMBER 30TH.

AND SO THAT REPRESENTS, UM, THE INCOME FOR THE HOTEL OCCUPANCY TAX FOR THE LIVE MUSIC FUND MONTH TO MONTH.

AND THEN THE SECOND COLUMN ON THE RIGHT HERE IS THIS FISCAL YEAR 2024.

AND SO WE JUST REPORTED ON THE, UM, THE APRIL REPORT, WHICH IS REALLY THE MARCH INCOME.

SO IT'S, UM, WHERE AM I? HERE I AM.

SO YEAH, 780 1007 75 IS THE AMOUNT THAT, UH, WAS COLLECTED IN THAT MONTH.

THAT WOULD'VE BEEN THE MONTH OF MARCH.

UM, AND IT'S, YOU KNOW, YOU CAN KIND OF COMPARE TO THE PREVIOUS YEAR KIND OF WHERE WE'RE AT.

SO THAT'S A TOTAL YEAR TO DATE OF 2,876,319.

ALRIGHT.

ANY QUESTIONS, QUESTIONS, COMMENTS, COMMISSIONS, COMMISSIONER? UM, IT, UH, JUST WITHIN THIS ROOM, DOES ANYONE HAVE A SENSE OF WHY THE NUMBER WENT DOWN FROM LAST YEAR? I COULDN'T COMMENT ON THAT.

UM, YEAH, IT'S, IT'S THE, THE RATE OF, IT'S THE HOTEL OCCUPANCY TAX THAT WAS COLLECTED.

IT IS A LITTLE BIT LOWER THAN THE AMOUNT FROM LAST YEAR.

UM, BUT I WOULDN'T HAVE A WAY TO KNOW WHAT EXACTLY WOULD CONTRIBUTE TO THAT.

I, I WONDER IF THERE'S A WAY WE COULD FIND OUT JUST OUT OF CURIOSITY, BECAUSE IT'S, YOU KNOW, I THINK THAT WE'RE, YOU KNOW, WE ARE KIND OF GOING BACK AND FORTH WITH SOME OF THE NUMBERS SO FAR, BUT I WOULD BE CURIOUS AS TO IF THE RATES WERE LOWER, THE HOTEL RATES WERE, ROOM RATES WERE LOWER OR THERE WERE LESS PEOPLE IN THE ROOMS JUST TO JUST DATA POINTS OR I'M CURIOUS ABOUT, I DON'T HAVE ANY REAL DATA, BUT THERE WAS A LOT OF TALK OF PEOPLE PULLING OUT OF SOUTH BY THIS YEAR, AFTER ALL THE REON AND, AND BOMB BUILDING COMPANIES THAT THEY ATTACH THEMSELVES TO THIS YEAR.

SO I FEEL LIKE ATTENDANCE IS PROBABLY A LOT LOWER THAN IT NORMALLY WAS.

I'D LOVE TO SEE THAT TOO, IS WHAT I'M SAYING.

YEAH.

INTERESTING.

OKAY.

UM, IS THERE, UM, UM, WHERE, WHERE THIS DATA IS GENERATED, IS THERE, IS THERE ANYBODY, UM, IN ANOTHER DEPARTMENT THAT CAN, UH, PROVIDE US SOME INSIGHT INTO THIS OR, UH, I MEAN, I CAN ASK WITHIN THE COMMUNITY FOR SURE.

UH, AND SEE WHAT THE TRENDS WERE.

I'M THINKING THE BEST BET MIGHT BE SOMEBODY WHO'S TIED TO THE HOTEL ASSOCIATIONS OR SOMEBODY MAYBE WHO WOULD KNOW WHAT THAT WAS.

I DON'T THINK THE CITY HAS THAT INFORMATION.

TELL ME IF I'M WRONG.

I DON'T THINK SO, BUT, UM, PROBABLY SOMEBODY HOTEL, UM, TIED TO THE HOTEL OR HOSPITALITY SECTOR MIGHT HAVE SOME DATABASE OR SOME WAY OF KNOWING IF, YOU KNOW, IF THEY SOLD FEWER HOTEL ROOMS OR IF THE RATES WERE LOWER OR SOMETHING LIKE THAT.

OKAY.

AND WE CAN, UM, SEE WHO THAT WOULD BE.

I DON'T KNOW.

WE'LL TRY IT WOULD BE, WE'LL, YEAH.

UH, CAN, CAN THE DEPARTMENT TRY OR, UH, WE DON'T HAVE ACCESS.

YOU DON'T HAVE, OKAY.

I GUESS THE OTHER, THE OTHER THING THAT COMES TO MY MIND, AGAIN, JUST TOTAL DATA.

IT'S THE ONE ON THE RIGHT WITH THE PERSON.

YEAH.

IT'S, YOU HAVE TO STICK RIGHT INTO IT.

YES.

YES.

OKAY.

UM, IS AS WE PUT OUR HIVE MIND TOGETHER WITH SOMETHING LIKE THIS AND PERHAPS DOING SOME FORECASTING IN THE FUTURE, I GUESS THE OTHER THING THAT COMES TO MIND IS SOUTH BY HAS SOME OTHER, YOU KNOW, UM, INTERNATIONAL OPPORTUNITIES.

LIKE ISN'T THERE ONE IN AUSTRALIA, AUSTRALIA NOW, AND IS THERE ONE IN ENGLAND NOW IN LONDON? AND SO I WONDER IF THAT IS GOING TO AFFECT OUR NUMBERS AT ALL, AND ONLY BECAUSE WE'RE TETHERED IN MARCH SIGNIFICANTLY TO SOUTH BY.

AND SO IT'LL BE INTERESTING TO SEE, UM, IF WE NEED TO PLAN ACCORDINGLY IF THE MORE INFORMATION THAT WE CAN GATHER FROM THE NUMBERS SHOULD.

YEAH, THAT'S A, THAT'S A GREAT POINT.

YEAH.

PLEASE GO AHEAD.

YEAH.

BUT SH SHOULD WE ASK FOR SOMEONE FROM SOUTH BY SOUTHWEST TO COME IN AND GIVE A PRESENTATION OR A TALK ON WHAT'S HAPPENING? I MEAN, THAT'S SOUTH BY SOUTHWEST.

THAT'S WHAT THAT IS.

OKAY.

HELLO, ERICA

[00:15:01]

SHAMLEY, MUSIC ENTERTAINMENT DIVISION MANAGER.

HELLO.

SO SOUTH BY EVERY YEAR, JUST LIKE ACL FEST AND C3 PRESENTS, THEY PUT OUT AN ECONOMIC IMPACT REPORT THAT DOES GO INTO ALL THE DATA SETS OF, YOU KNOW, I DON'T KNOW HOW MUCH IT GOES INTO THEIR OWN REGISTRATIONS OR ANYTHING LIKE THAT, BUT TYPICALLY IT'S MARCH, APRIL, MAY, JUNE, IT'S I THINK, READY IN THE SUMMERTIME.

THEY HAVE PRESENTED TO US BEFORE ON THE REPORT, SO I WOULD HAVE THEM, UH, JUST REQUEST THAT PRESENTATION FOR THE LAST, UH, FESTIVAL.

OKAY.

AND THEN FOR HOTEL DATA, I ASSUME THE HOTEL MOTEL ASSOCIATION, THE TEXAS HOTEL MOTEL ASSOCIATION.

GOT IT.

OKAY.

UM, ANY OTHER QUESTIONS, COMMENTS FROM THE COMMISSIONERS? THANK YOU, KIM.

UH, NEXT

[4. Update on the FY24 Austin Live Music Fund application launch by Erica Shamaly, Division Manager, Music & Entertainment Division.]

ITEM IS, UH, UPDATE ON FFY 24 AUSTIN LIVE MUSIC FUND APPLICATION LAUNCH BY ERICA SHAMLEY, DIVISION MANAGER, MUSIC AND ENTERTAINMENT DIVISION.

THANK YOU ERICA.

HELLO AGAIN.

ERICA S SHAMLEY, MUSIC ENTERTAINMENT DIVISION MANAGER.

UH, I DON'T HAVE A PRESENTATION.

JUST WANNA GIVE YOU AN UPDATE ON HOW IT'S GOING WITH THE APPLICATION.

WHICH OPEN MAY 21ST CLOSES JUNE 18TH? IT'S BEEN GOING VERY WELL.

UH, WE HAVE THREE AS OF THIS MORNING, SO I'M SURE THE NUMBERS HAVE GONE UP.

WE HAVE 334 APPLICATIONS IN PROGRESS WITH 99 SUBMITTED.

UH, WHICH WE ARE WAY AHEAD OF WHERE WE WERE AT THIS TIME LAST YEAR, WHICH IS WONDERFUL.

WE'VE ALREADY HAD ONE VIRTUAL WORKSHOP, LIVE WORKSHOP WITH 88 PEOPLE IN ATTENDANCE.

UH, WE'VE GOT A LOT OF NEW LIKE, GREAT QUESTIONS AND AFTER TOMORROW WE'RE GONNA COMPILE THOSE QUESTIONS AND ADD THEM TO THE WEBSITE, TO THE FREQUENTLY ASKED QUESTIONS.

UH, 'CAUSE THAT'LL GIVE US A GOOD SOLID TWO WEEKS FOR PEOPLE TO KIND OF FINISH UP BEFORE JUNE 18TH, UH, TO FINISH UP THEIR APPLICATIONS.

UH, SO WHAT WE'VE BEEN HEARING IS THAT REALLY NO ISSUES.

WE HAVEN'T BEEN HEARING OF ANY PARTICULAR TECHNICAL ISSUE.

UM, WE'VE HAD SOME GREAT QUESTIONS, BUT THE GUIDELINES OF WHAT'S ON OUR WEBSITE PRETTY MUCH ANSWERS THOSE QUESTIONS.

AND THEN I, A BIG THANKS TO THE LONG CENTER, OUR TECHNICAL ASSISTANCE PARTNER, THEY'RE HANDLING OUR INITIAL INTAKE, UH, WITH A TA PERSON WHO'S, UH, BOTH FLUENT IN ENGLISH AND SPANISH.

SO THEY'RE THE FIRST POINT OF, UH, ENTRY AND THEY'RE LOGGING EVERYTHING AND THEN ELEVATING AS NECESSARY.

SO WE HAVE A GREAT, UH, YOU KNOW, KIND OF, UH, PROCESS IN PLACE TO HANDLE ANYBODY.

AND SO FAR SO GOOD IN TERMS OF, UH, MAKING SURE EVERYBODY GETS THE ANSWERS THAT THEY NEED TO DO THEIR APPLICATIONS.

THANK YOU.

THANKS, IKA.

I MEAN, IE EVERYTHING THAT I'VE HEARD ABOUT IT SO FAR HAS BEEN VERY POSITIVE.

IT'S, UH, THE, UH, SIMPLIFICATION OF THE APPLICATION HAS JUST BEEN FANTASTIC, UH, ON HOW THAT'S BEEN DONE.

SO IT, IT DEFINITELY SOMETHING WE CAN NAVIGATE THROUGH PRETTY, PRETTY WELL.

UH, EXCELLENT.

THIS TIME.

UH, PLEASE, COMMISSIONER, SORRY THERE.

IT'S, THANKS.

UM, THE FAR OUT COULDN'T GET THROUGH WITH OUR EIN, UM, IT DIDN'T RECOGNIZE IT WAS THERE.

DID ANYBODY ELSE HAVE THAT ISSUE THAT YOU HEARD ABOUT? IT'S NOT REQUIRED.

YOUR EIN WHERE ARE YOU PUTTING THAT INTO THE, THE VERY BOTTOM OF THE INITIAL FORM? IT SAYS FIND.

OKAY.

OH, UM, I'LL FIND OUT BECAUSE THAT'S NOT TRULY NECESSARY FOR THE APPLICATION.

THERE IS A SEARCH, UH, THAT THERE WAS THERE FOR LAST YEAR, OR MAYBE FOR OUR NONPROFITS.

THERE'S A BUTTON NEXT TO THAT THAT SAYS SKIP AND GO ON.

IF YOU WANNA DO THAT, YOU CAN.

OKAY.

THERE'S A BUTTON FOR THE EIN QUESTION TO SAY SKIP AND GO ON.

'CAUSE IT'S NOT REQUIRED.

I'M SKIPPING IT.

THANK YOU.

SKIP IT.

YEAH, SKIP IT.

THANKS.

UH, WE'LL GET THAT INFORMATION LATER IF WE NEED IT.

THAT WILL BE COMING FROM THE LONG CENTER WHO HANDLES THE AGREEMENTS.

UH, BUT FOR THE APPLICATION'S SAKE, IT'S NOT NECESSARY.

THANK MM-HMM.

TO THAT POINT, I HAVE TO, I, I HAVE TO SAY THAT THE FEEDBACK THAT I'VE HAD MOSTLY HAS BEEN DIRECTLY FROM MUSICIANS AND NOT, NOT SOME OF THE OTHER STAKEHOLDERS, BUT THAT'S BEEN VERY POSITIVE.

UH, COMMISSIONERS.

UM, ANY OTHER COMMENTS, QUESTIONS? OKAY, SO 99 PLUS 99 POSITION SO FAR? YEAH.

I'M ASSUMING IT'S OVER THAT NUMBER NOW.

UH, WE HAVE AN ANOTHER LIVE VIRTUAL SESSION TOMORROW AT 1:00 PM UH, GO TO ATX MUSIC.ORG TO CLICK ON THE AUSTIN LIVE MUSIC FUND WEBPAGE.

AND THEN YOU CAN CLICK DIRECTLY ON FROM THE ZOOM LINK THERE, UH, TO JOIN AT 1:00 PM TOMORROW.

OR YOU CAN ALSO RSVP THROUGH EVENTBRITE FIRST, SO WE HAVE YOUR INFORMATION WE CAN FOLLOW UP.

UH, BUT THE ZOOM LINK IS ON THE EVENTBRITE PAGE AS WELL.

UH, ANYONE CAN JOIN.

YOU DON'T NEED AN RSVP TO JOIN THE MEETING AT 1:00 PM.

YEAH.

JUST A QUICK QUESTION.

UM, THERE IS NO, UH, SPECIFIC SPLIT BETWEEN INDEPENDENT PROMOTERS AND, UH, MUSICIANS, RIGHT.

IN TERMS OF PERCENTAGES AND, UH, HOW MUCH PERCENT OF, UH, THE TOTAL IS GIVEN TO ONE OF THE OTHER NOT, I DON'T KNOW YET.

I, I CAN ASK FOR THAT TO SEE WHAT IS OUR PERCENTAGE SO FAR.

BUT WHEN THE APPLICATION CLOSES, WE'LL PROVIDE A DATA DASHBOARD OF LIKE, YEAH, YEAH.

SORRY.

I MEANT, UH, I MEANT THE, UH, THE PORTION OF THEIR WATCH.

THERE IS NO,

[00:20:01]

UH, PRE-SPLIT, RIGHT? IT IS BASED ON WHATEVER APPLICATIONS COME.

OH, YEAH.

THERE'S 3.5 MILLION LIKE LAST YEAR THAT WILL COMBINED BE SPLIT COMBINED.

YEAH.

BECAUSE A LOT OF MUSICIANS ARE PROMOTERS AND PROMOTERS ARE MUSICIANS, AND SO IT JUST DEPENDS ON HOW THEY APPLY.

YEAH.

UH, BUT FOR VENUES IT'S 1 MILLION.

GOT IT.

FOR THAT.

OKAY.

ANY, UH, COMMISSIONER? YEAH.

ONE, ONE QUESTION.

UH, CAN A MUSICIAN APPLY AS A MUSICIAN, BUT ALSO IF THEY HAVE A BUSINESS APPLIES LIKE A INDEPENDENT, IT'S, IT'S ONE ONE GRANT PER APPLICANT.

PER APPLICANT.

OKAY.

YEAH.

SO THE BUSINESS DOES NOT ACCOUNT AS ITS OWN THING? NO, BECAUSE YOU CAN GET PAID, THINK OF IT AS IF YOU'RE GETTING PAID FOR THE BUSINESS, YOU'RE GETTING PAID AS A MUSICIAN.

RIGHT.

IT'S THE SAME DIFFERENCE.

OKAY.

AND SO WE WANNA BE EQUITABLE WITH THE FUNDS AND MAKE SURE THEY GO AS FAR AND WIDE AS POSSIBLE.

SO FOR MUSIC, WE, OUR REQUIREMENT IS ONLY ONE, UM, GRANT PER APPLICANT.

SO YOU CANNOT GET TWO GRANTS.

BUT CAN YOU APPLY, HAVE TWO APPLICATIONS IN? WILL THE SYSTEM ALLOW THAT? UH, I DON'T.

ONE AS AN INDEPENDENT PROMOTER AND ANOTHER AS A MUSICIAN.

HOW ABOUT, UH, I'M SURE FOLKS WOULD WANT TO DO THAT.

UM, TECHNICALLY I AM BOTH.

AND I'M SURE THERE ARE OTHER MUSICIANS.

I MEAN, WE DON'T HAVE A RULE AGAINST THAT.

AND IT'S NOTHING IN THE GUIDELINES THAT SAY YOU CAN'T HAVE TO, I THINK YOU ONLY HAVE ONE APPLICATION THOUGH.

AND SO PER YOUR NAME, YOU CAN ONLY HAVE ONE APPLICATION.

I MEAN, THAT'S, I MEAN, IT'S A, IT'S A SOFTWARE, RIGHT? YOU COULD, IT'S DEPENDS ON HOW IT'S WRITTEN.

YOU COULD PUT A DIFFERENT EMAIL YOUR BUSINESS NAME AND APPLY THROUGH THAT.

MM-HMM.

THE SUBMITTABLE HAS A LOT OF CHECKS AND BALANCES IN PLACE COMPARED TO WHAT THE SYSTEM WE USED PREVIOUSLY TO PREVENT THAT.

THE GOAL IS THAT ONE PERSON CAN HAVE ONE APPLICATION.

SO, I DON'T KNOW.

IT'S A GOOD QUESTION.

I CAN ASK THE LONG CENTER.

DOES IT, DOES THE GUIDELINES SAY VERY SPECIFICALLY THOUGH, THAT IF YOU, YOU CAN ONLY APPLY YOUR FINANCE DECISION TO NOT ALSO APPLY? IT SAYS THAT, YEAH, THAT'S WHAT I WAS ASKING ABOUT.

WHAT IS THE, WHAT IS THE KIND OF, I COULDN'T, YEAH, THANK YOU.

THE RULE AROUND IT, YOU CAN ONE GRANT, ONE APPLICATION PER APPLICANT.

AND SO YEAH, YOU HAVE TO CHOOSE.

OKAY.

AND SO THANK YOU FOR THAT, KIM.

THANK YOU.

SO THE POLICE, UH, AND, AND COMMISSIONER STRICKLAND.

AND THEN I'LL, I'LL COME TO YOU.

SO THE BUSINESS CANNOT BE ITS OWN APPLICANT AND THEN LIKE A PERSON LIKE THAT OWNS THE BUSINESS? WELL, I MEAN, IT'S NOT, YOU COULD HAVE REALLY QUICKLY, EVERYBODY THAT HAS, THAT'S NOT TALKING TO ALLOW OTHER PEOPLE TO SPEAK.

OKAY.

IF THREE ARE ON, NOBODY ELSE WILL SPEAK.

OH.

WITH THE TECHNICAL STUFF.

THANK YOU.

I JUST ASKED MY QUESTION.

YEAH.

SO, UM, WE'VE, THIS HAS COME UP BEFORE, AND IF YOU ARE A OWNER, A PRINCIPAL OWNER IN THE SMALL PROMOTION COMPANY, YOU'RE STILL BENEFITING PICK ONE.

YEAH.

OKAY.

SO THERE, YEAH.

OKAY.

SO AS FAR AS QUALIFYING AS A MUSIC VENUE, WOULD A CITY BUILDING BE EXCLUDED FROM THAT? 'CAUSE I KNOW YOU HAVE TO OPERATE LIKE, I GUESS A CERTAIN AMOUNT OF PERCENTAGE TO BE CONSIDERED A MUSIC VENUE, BUT FOR THOSE, WE JUST HAD A, A FESTIVAL TAKE PLACE.

UH, LAUREN GO THROUGH A FESTIVAL, THE HOT TOWN FEST AT DORSMAN AUDITORIUM.

MM-HMM.

NOT SURE HOW SHE APPLIED, BUT SHE WAS A RECIPIENT OF THE LIVE MUSIC GRANT OR THE LIVE MUSIC FUND FOR A FUTURE FESTIVAL TO OCCUPY THE ENTIRE GROUNDS.

WHAT WOULD BE THE PROCESS IN WHICH YOU WOULD APPLY FOR THAT? WOULD IT BE UNDER AN ARTIST JUST TRYING TO THROW THE FESTIVAL? OR WOULD YOU TRY TO GO THROUGH AS A VENUE? UM, I DON'T THINK DORIS MILLER WOULD BE, I'D HAVE TO CHECK INTO THAT BECAUSE EACH OF THE CITY, UH, SUPPORTED SPACES HAVE, WE HAVE TO KIND OF LOOK AND SEE EXACTLY WHO THE OWNERSHIP IS.

OKAY.

IF IT IS A CITY OWNED BUILDING, IT'S NOT ELIGIBLE AS A VENUE.

SURE.

HOWEVER, YOU COULD HAVE SEVERAL MUSICIANS THAT WANT TO PUT THE FESTIVAL TOGETHER AND THEY COULD EACH APPLY FOR THAT AND THEN ACCUMULATE AND PUT THEIR FUNDS TOGETHER.

YOU JUST CANNOT HAVE THE FUNDS PAY FOR THE SAME EXPENSE TWICE.

RIGHT.

THANK YOU.

MM-HMM.

, ANY OTHER QUESTIONS, COMMENTS? WE GOOD.

AND WE HAVE A LOT OF GREAT QUESTIONS LIKE THAT AT OUR LIVE, ACTUALLY.

IT'S BEEN REALLY GREAT AND PEOPLE HAVE BEEN GETTING TO KNOW EACH OTHER.

UM, IT'S BEEN A POSITIVE EXPERIENCE.

WE HAVE A LOT OF GREAT QUESTIONS.

UH, SO KEEP IT UP.

UH, PLEASE SPREAD THE WORD SHOW UP TOMORROW, AND THEN WE'LL HAVE, UM, TWO VIRTUAL OFFICE HOURS THAT WILL BE WITH KIM AND GREG, UH, THE FOLLOWING TWO THURSDAYS BEFORE WE CLOSE.

SO, LOTS OF OPPORTUNITIES TO ASK US QUESTIONS IF YOU NEED TO ASK US ANY QUESTIONS.

THANK YOU.

THANK YOU, ERICA.

ALRIGHT, MOVING

[5. Presentation by Donald Jackson, Program Manager, Economic Development, on financial incentives for new developments]

ON TO DISCUSSION ITEMS. WE HAVE PRESENTATION BY DONALD JACKSON, PROGRAM MANAGER, ECONOMIC DEVELOPMENT ON FINANCIAL INCENTIVES FOR NEW DEVELOPMENTS.

THANK YOU.

THANK YOU.

GOOD EVENING, COMMISSIONERS.

CAN Y'ALL HEAR ME? YES.

GREAT.

WONDERFUL.

UM, WELL, GOOD EVENING.

UM, I PRESENTED TO YOU BEFORE, MY NAME IS DON JACKSON.

I WORK IN THE ECONOMIC DEVELOPMENT DEPARTMENT AND OUR GLOBAL BUSINESS DIVISION.

UH, I WORK

[00:25:01]

IN OUR, UH, UH, BUSINESS DISTRICTS AND INCENTIVES, UH, UNIT.

AND ONE OF THE THINGS WE'RE REALLY EXCITED ABOUT THIS YEAR IS BRINGING FORWARD A NEW PROGRAM RELATED TO, UH, ECONOMIC INCENTIVES AND WITH A FOCUS ON, UH, PROVIDING AFFORD OR ENCOURAGING THE PROVISION OF AFFORDABLE, UH, REAL ESTATE FOR, UH, CREATIVE SECTOR, SMALL LEGACY BUSINESSES, AND SIMILAR TYPES OF, UH, HIGH IMPACT COMMUNITY PROJECTS IN THE CITY.

UH, SO I'M HAPPY TO PRESENT ON THIS TO Y'ALL TONIGHT, UH, WITH Y'ALL TONIGHT, AND I'D LOVE TO GET YOUR FEEDBACK.

AND I WOULD, UH, AND I'D ALSO ASK THAT IF, IF YOU'LL, UH, IF YOU'LL, UH, SUPPORT THIS, UH, INITIATIVE, UH, TO, UH, COME BACK NEXT MONTH TO VOTE ON IT FOR, FOR ENDORSEMENT.

BUT, UH, I'LL JUST, I'LL JUST START WITH THE PRESENTATION HERE.

UH, THIS IS CALLED THE PLACE-BASED ENHANCEMENT PROGRAM.

UH, COULD YOU, UH, NEXT SLIDE, PLEASE.

SO WHAT WE'VE BEEN DOING IS REVISING WHAT, UH, WE REFER TO AS OUR CHAPTER THREE 80 POLICIES.

UH, THESE ARE THE ECONOMIC INCENTIVE PROGRAMS THAT ARE, UH, AUTHORIZED FOR CITIES TO USE BY THE STATE OF TEXAS.

UH, THEY ALLOW CITIES TO USE TAX REIMBURSEMENTS, GRANTS, AND OTHER TYPES OF FINANCIAL PROGRAMS TO ENCOURAGE, UH, DIFFERENT COMMUNITY OUTCOMES OF THAT ARE ECONOMIC IN NATURE.

UH, OFTEN THESE TYPES OF INCENTIVES FOCUS ON NEW JOBS OR NEW REAL ESTATE AND CAPITAL INVESTMENT.

AND THIS PROGRAM IS REALLY KIND OF LEANING IN ON THE, THE REAL ESTATE, UH, SECTION.

SUCH, UH, PART OF THAT, UM, AS I SAID, IT'S STATE CODE, UH, CHAPTER THREE 80.

WE ALSO HAVE EXTENSIVE POLICIES AND PRIORITIES AROUND IT.

UH, AUSTIN IS, IS PRETTY SINGULAR, UH, AT THIS POINT IN A DEGREE TO WHICH WE HAVE A REALLY STRONG COMMUNITY BENEFIT F UH, COMMUNITY BENEFITS FRAMEWORK FOR OUR INCENTIVES.

UH, WE, WE PUT A LOT OF, UM, REQUIREMENTS IN TO MAKE SURE THAT ANY PROJECT THAT GETS ANY SORT OF BUSINESS INCENTIVE, UH, REFLECTS THE GOALS AND VALUES OF THE, OF, OF THE COMMUNITY, INCLUDING REQUIRING LIVING WAGES, GREEN BUILDING STANDARDS, UH, SUPPORTING LOCAL ART AND MUSIC IN VARIOUS WAYS, BEING TRANSIT ACCESSIBLE.

UH, AND MORE RECENTLY A BIG FOCUS ON, ON PROMOTING CHILDCARE AND WORKFORCE ORIENTED CHILDCARE SUPPORT.

SO THIS, THIS IS KIND OF THE TRADITION IN WHICH WE'RE WORKING IN, UH, LOCALLY.

UH, NEXT SLIDE.

THIS FOR JUST FOR YOUR VIEWING PLEASURE, IS A COPY OF THE STATE CODE.

THIS IS CHAPTER THREE 80.

THIS IS WHAT ENABLES US TO, TO DO THESE TYPES OF PROGRAMS. CITIES ARE GIVEN A, A BROAD LATITUDE IN DEVELOPING ECONOMIC RELATED PROGRAMS, UH, TO PROMOTE STATE OR LOCAL ECONOMIC DEVELOPMENT AND TO STIMULATE BUSINESS AND COMMERCIAL ACTIVITY AND THE MUNICIPALITY THAT CAN BE ALL SORTS OF BUSINESS AND COMMERCIAL ACTIVITY, UH, THAT, THAT REFLECTS, YOU KNOW, THE COMMUNITY'S PLANS.

UH, NEXT SLIDE PLEASE.

SO, BACK IN 2018, UH, OUR DEPARTMENT INITIATED A, A VERY EXTENSIVE, UH, COMMUNITY FEEDBACK PROCESS.

UM, THAT PROCESS INCLUDED, UH, OVER 160 UNIQUE ATTENDEES, UH, LOTS OF DIFFERENT SESSIONS, ONLINE FORMS AND OTHER OPPORTUNITIES FOR ENGAGEMENT GENERATING ULTIMATELY ABOUT 2,500 COMMENTS.

UH, THERE WERE SPECIFIC ROUND TABLES FOR REPRESENTING THE CREATIVE SECTOR AND ALSO REPRESENTING SMALL BUSINESS.

AND AT THAT TIME, AFFORDABILITY, UH, IT WAS ALREADY JUST, YOU KNOW, A MAJOR CONCERN.

I DON'T THINK THAT'S GONNA BE A SURPRISE TO ANYONE HERE, BUT AFFORDABILITY HAS BEEN A MAJOR CONCERN FOR, UH, OUR CREATIVE SECTOR FOR MANY YEARS.

UM, OUR, UH, PART IS IN, IN, UH, EXCUSE ME, IN RESPONSE TO THAT, UM, CITY COUNCIL ADOPTED OUR CURRENT CHAPTER THREE 80 POLICY AND PROGRAMS. AND IN RESPONSE TO THAT, UH, AFFORDABILITY NEEDS, UH, CITY COUNCIL AUTHOR, UH, ADOPTED THE ORDINANCE LISTED HERE THAT AUTHORIZED THE CITY MANAGER TO DEVELOP BASICALLY A LOCATIONAL ENHANCEMENT PROGRAM.

SOMETHING TO REALLY, AGAIN, ADDRESS, UH, REAL ESTATE RELATED NEEDS, ESPECIALLY, UH, WITH A BIG FOCUS ON AFFORDABLE SPACE FOR, UH, CREATIVE SECTOR, UH, UH, VENUES AND BUSINESSES OF NONPROFITS.

UH, NEXT SLIDE.

THIS PROGRAM, UH, WAS CHARGED BY COUNCIL TO, UH, ADDRESS, UH, ISSUES LISTED HERE, INCLUDING COMMERCIAL AFFORDABILITY FOR TENANTS OF COMMERCIAL SPACE WITH A PARTICULAR FOCUS ON SMALL LOCAL HERITAGE BUSINESSES, NONPROFITS, CO-OPS, AND THE CREATIVE SECTOR.

BIG FOCUS ON THE CREATIVE SECTOR, UH, FINANCIAL CHALLENGES FACED BY OWNERS OF COMMERCIAL SPACES BY PROVIDING ACCESS TO CAPITAL AND FINANCING TO DELIVER COMMUNITY BENEFITS SUCH AS, AGAIN, AFFORDABLE, UH, CREATIVE SPACES, AFFORDABLE PUBLIC SPACES, UH, AND NEW GOODS AND SERVICES, UM, AND

[00:30:01]

RESERVE NEIGHBORHOOD IDENTITY.

AND THEN, UH, SPECIFIC MARKET NEEDS SUCH AS DELIVERY OF GOOD SERVICES AND TRANSPORTATION SOLUTIONS UNDER INVESTED AREAS THAT YIELD BENEFITS TO THE COMMUNITY BEYOND LOCAL TAX-BASED CONTRIBUTION.

JUST TO TRANSLATE THAT, WHAT THAT MEANS IS WE'RE ALSO, THIS PROGRAM WILL ALSO FACILITATE, UH, SUPPORTING, UH, AREAS THAT ARE UNDER INVESTED WITH NEEDED COMMUNITY INFRASTRUCTURE.

THINK THINGS LIKE, UM, UH, GROCERY STORES AND FOOD DESERTS.

THAT'S, THAT'S, UH, SOME EXPLICIT DIRECTION TO, TO BE ABLE TO ADDRESS.

UH, NOT JUST THAT THOUGH NECESSARILY OTHER TYPES OF COMMUNITY INFRASTRUCTURE COULD BE, UH, COULD BE ENABLED THROUGH THIS, THROUGH THIS PROGRAM.

UH, NEXT SLIDE.

WE'VE RECEIVED A CONTINUING DIRECTION OVER THE YEARS TO KEEP DOING THIS.

UH, THESE INCLUDE THESE THAT, THAT INCLUDES THESE, THESE ITEMS HERE.

LIVE MUSIC VENUE BONUS AND INCENTIVE PROGRAM, WHICH, UH, TOLD US TO KEEP FOCUSING ON AFFORDABLE COMMERCIAL SPACE.

WE'VE BEEN WORK, UH, AND ALSO THIS CREATIVE SPACE BONUS AND INCIDENT PROGRAM, WHICH INCLUDED EXPLICIT USE OF CHAPTER THREE 80 TO HELP, UH, ACHIEVE AFFORDABLE COMMERCIAL SPACE AND LOW COST LONG-TERM LEASES, UH, AND POTENTIAL PROPERTY TAX RELIEF FOR OWNERS.

AGAIN, WITH THAT CREATIVE FOCUS, WE'VE BEEN WORKING ON THOSE TWO ITEMS, UH, AND, AND TALKED Y'ALL BEFORE ABOUT THAT IN RELATION TO A DENSITY BONUS PROGRAM.

THAT'S A REGULATORY INCENTIVE.

SO, AND THIS WOULD BE COMPLIMENT, THIS WOULD COMPLIMENT THAT.

SO WE'D HAVE SORT OF MULTIPLE TOOLS IN THE QUIVER WE COULD USE.

THIS WOULD BE AN A, A FINANCIAL INCENTIVE, WHICH, WHICH ACTUALLY HAS A GOOD BIT MORE FLEXIBILITY AND, AND CAN BE POSITIVE IN THAT REGARD.

UH, WE'VE ALSO GOTTEN DIRECTION FROM THE, UH, ETOD PLAN AND POLICY, UM, THE, UH, INCLUDING, UH, GEOGRAPHICAL GUIDANCE THAT WAS ADOPTED LAST MONTH BY CITY COUNCIL.

BUT THE GENERAL PLAN AND POLICY AROUND E-O-T-E-T-O-D INCLUDED, UH, A FOCUS ON, UH, ENCOURAGING AND INCENTIVIZING DEVELOPERS TO PROVIDE AFFORDABLE, UH, UH, GROUND FLOOR LEASE TERMS FOR SMALL BUSINESSES, NONPROFITS, COMMUNITY SUPPORTING SPACE, UH, AND, AND YOU KNOW, THAT ALSO INCLUDES CREATIVE SECTOR, UM, ARTS VENUES AND MUSIC VENUES.

THAT'S SOMETHING THAT'S COME UP QUITE A LOT, ESPECIALLY IN THE LAST FEW MONTHS WITH AS A PRIORITY FOR ETOD.

UH, AND THEN THE PALM DISTRICT PLAN THAT WAS ADOPTED LAST YEAR.

UH, IT WAS ADOPTED WITH EXPLICIT DIRECTION TO, TO GET MOVING AND GET THE, AND BRING BACK LOCATION ENHANCEMENT PROGRAM AND ORDINANCE FOR COUNCIL ADOPTION.

UH, WE, WE HAVE BEEN WORKING ON IT, BUT, UH, IT, IT, IT'S, YOU KNOW, SO WE, WE GOT ADDITIONAL DIRECTION TO TO, TO BRING THAT FORWARD AND BRING IT TO COUNCIL.

UM, NEXT SLIDE, PLEASE.

UH, THIS JUST SORT OF HIGHLIGHTS THE URGENCY OF THIS NEED AND, AND THAT IT REMAINS AN URGENT NEED.

UH, I THINK THIS IS AN IMPORTANT THING TO BE AWARE OF.

IN TERMS OF CURRENT CONVERSATIONS AROUND REAL ESTATE.

UH, IT, IT'S IMPORTANT TO THINK ABOUT THIS IN TERMS OF DIFFERENT SEGMENTS OF REAL ESTATE.

MOST, UH, CREATIVE SPACES AND VENUES ARE REALLY LOOKING AT THE, AT MORE THE, UH, THE RETAIL COMMERCIAL, UH, REAL ESTATE MARKET.

UH, OFFICE REAL ESTATE IS DEFINITELY NOT, YOU KNOW, THERE'S A LOT OF VACANCY AND COSTS ARE KIND OF LOW IN THAT, BUT THAT'S NOT REALLY A GOOD FIT FOR MOST, UM, MOST TYPES OF CREATIVE AND MUSIC, UH, MUSIC BUSINESSES AND VENUES.

UM, WE'RE LOOKING AT RETAIL, AND RETAIL IS COMPLETELY DECOUPLED FROM, UH, THE TRENDS WE SEE IN OFFICE.

WHEREAS OFFICE HAS VACANCIES OVER 25%.

UM, RETAIL HAS REALLY TIGHT, UH, SUPPLY, VERY LITTLE, UH, IN, IN AUSTIN, UM, WHEN, UH, IN THE LAST QUARTER REPORT THAT, UH, I LOOKED AT, SHOWED THAT WE WERE BASICALLY BELOW 4% VACANCY FOR, UH, FOR RETAIL SPACE.

THAT'S, THAT'S EXTREMELY LOW.

AND I ACTUALLY CHECKED THIS, UM, A WEEK AND A HALF AGO.

UH, AND IT'S BELOW 3% NOW.

SO EVEN SO, IT HASN'T, THERE ISN'T A LOT OF NEW PRODUCT COMING ONLINE.

THE, IT'S ACTUALLY GETTING TIGHTER AND TIGHTER.

AND YOU CAN SEE HERE THAT, UH, THIS IS ACTUALLY A REPORT FROM THIS IS FROM A REAL ESTATE REPORT FROM THE, UH, DATA SERVICE COSTAR, WHICH, WHICH ACTUALLY INDICATED AUSTIN HAS SOME OF THE HIGHEST, UH, RETAIL RENT GROWTH IN THE COUNTRY.

IT'S DOUBLE THE NATIONAL AVERAGE.

AND, UH, RETAIL RENTS HAVE GONE UP TO HISTORIC HIGHEST FOR THE MARKET, UM, BECAUSE OF THIS, THIS CONSTRAINED SUPPLY.

SO EVEN THOUGH THERE'S, UH, CHANGES HAPPENING IN THE OFFICE MARKET AND, AND SOME SLOW DOWN IN SOME OF THE, UH, RESIDENTIAL, UH, RENTAL MARKET, UH, THE RETAIL MARKET, THAT'S REALLY GONNA HIT OUR SMALL BUSINESSES AND CREATE A SPACES AND VENUES THE HARDEST.

UM, NOT A LOT OF RELIEF, UH, COMING AT THIS POINT.

UH, NEXT SLIDE.

AND I DON'T THINK, AGAIN, AND I THINK THAT'S, THAT'S SOMETHING THAT FOLKS PROBABLY ARE VERY WELL AWARE OF.

UH, THIS IS JUST,

[00:35:01]

UH, SOME DATA FROM SURVEYS THAT THE DEPARTMENT THAT OUR DEPARTMENT DOES, UH, ANNUALLY, UH, IN SORT OF OUR JUST ENGAGEMENT REPORTS WITH OUR STAKEHOLDERS.

ONE OF THE QUESTIONS IS ABOUT THE NEED FOR AFFORDABLE CREATIVE SPACE.

WE'VE BEEN ASKING THAT QUESTION SINCE 2018.

UH, AND THERE HAS NEVER BEEN A YEAR WHERE A MAJORITY OF RESPONDENTS SAID THAT THEY HAD ACCESS TO AFFORDABLE CREATIVE SPACE.

UH, AND, AND, YOU KNOW, THE TOTAL PARTICIPATION ACCOUNTS HAVE VARIED AND BEEN AS HIGH AS IN THE ALMOST THREE 50.

BUT, UH, YOU KNOW, IT, IT, IT'S, IT'S REMAINED A PRESSING NEED FOR, UH, SINCE WE STARTED ASKING THE QUESTION.

UH, NEXT SLIDE.

SO, HERE'S WHAT WE DID.

UH, WE HIRED A CONSULTANT TO DO, UH, AN EXTENSIVE STUDY AND DO A REPORT ON WHAT THIS PROGRAM WOULD LOOK LIKE.

THEY REVIEWED, UH, CURRENT POLICIES AT THE CITY AND THE STATE, AND LOOKED AT LOCAL BEST PRACTICES.

THEY ALSO PROVIDED FINDINGS ON, ON WHAT TO INCORPORATE AND WHAT TO ADJUST.

UH, THEY INCLUDED A GOOD DEAL OF REAL ESTATE MARKET ANALYSIS TO THINK ABOUT, TO HELP, UM, CONSIDER POTENTIAL OPPORTUNITIES FOR FINANCING AND HOW TO STRUCTURE THOSE.

AND THEN THEY MADE RECOMMENDATIONS ON PROGRAM PRIORITIES, GUIDELINES, TARGETS AND SCORING.

UM, WE ACTUALLY ENGAGED THEM, UH, A FEW YEARS AGO, UH, UNFOR.

AND, AND PART OF THE TIMELINE STORY ON THIS ONE IS THAT WE, WE GOT THEM UNDER CONTRACT IN JANUARY OR FEBRUARY OF 2020.

AND AS YOU ALL, I'M SURE, REMEMBER, SOME, SOME OTHER BIG STUFF HAPPENED IN SPRING OF 2020.

SO, UH, SOME OF OUR, SOME OF OUR PROGRAMMING ROLLOUT GOT DELAYED, BUT, UH, WE DECIDED TO MOVE THIS PROGRAM FORWARD NOW BECAUSE WE ARE GOING THROUGH A REVISION PROCESS PER OTHER TAX INCENTIVE PROGRAMS. SO WE WANTED TO BRING THEM FORWARD TOGETHER TO COUNSEL IN THE COMMUNITY.

UH, AS ALSO PART OF THAT PROCESS, WE HAD SEVERAL DIFFERENT STAKEHOLDER GROUPS, UH, REPRESENTING THE SECTORS YOU SEE HERE.

UH, WE DIDN'T REPEAT THE FULL, UM, THE FULL EFFORT WE HAD IN 2018 WITH, YOU KNOW, HUNDREDS OF PARTICIPANTS AND THOUSANDS OF COMMENTS BECAUSE WE, WE THOUGHT WE HAVE A PRETTY GOOD DIRECTION IN TERMS OF, UH, COMMUNITY NEEDS FOR, FOR AFFORDABLE SPACE.

THAT, THAT, YOU KNOW, THERE'S NO, THERE'S NO INDICATION THAT THAT'S NEED HAS LED UP.

AND WE WANTED TO FOCUS INSTEAD MORE ON KIND OF GETTING REFINED, UH, DISCUSSION WITH REPRESENTATIVES FROM, UH, FROM REAL ESTATE AND ARTS AND MUSIC SECTORS AND SMALL BUSINESS SECTORS, AND, YOU KNOW, KIND OF DEVELOPERS WITH A FOCUS ON THESE TYPES OF PROJECTS TO HELP REFINE, UH, OUR PROGRAM GOALS AND, AND ASKS.

UH, NEXT SLIDE.

AND THIS IS WHERE WE ARE AT CURRENTLY.

THIS IS THE PROGRAM WE'RE GONNA BE PRESENTING, UM, FOR COUNCIL, UH, APPROVAL IN JULY.

AND WE'VE BEEN, UH, GETTING FEEDBACK FROM, UH, DIFFERENT COMMISSIONS AND STAKEHOLDER GROUPS TO, TO ON, ON WHAT WE'RE KIND OF PROPOSING.

BUT, UH, WE'RE CALLING THIS THE PLACE-BASED ENHANCEMENT PROGRAM.

AND THIS PROGRAM WOULD ENCOURAGE, UH, AFFORDABLE COMMERCIAL SPACE FOR THE CREATIVE SECTOR, SMALL LOCAL BUSINESSES, UH, COMMUNITY SERVING PROJECTS AND NEEDED INFRASTRUCTURE IN UNDERSERVED AREAS.

UH, THE INCENTIVE WOULD BE BASED, UH, IN MOST CASES ON NEW INVESTMENTS IN REAL ESTATE AND PRIORITY AREAS FOR THE CITY THAT PROVIDE MAJOR COMMUNITY BENEFITS, UM, IN, IN ONE CASE.

AND WE'LL GET IN, IN ONE CATEGORY, AND WE'LL TALK ABOUT THAT IN A MINUTE.

AND CAN ALSO BE USED FOR PRESERVATION OF EXISTING VENUES, UH, MUSIC VENUES OR ARTS VENUES, UH, CREATIVE SPACES AND LEGACY BUSINESSES THAT ARE THREATENED BY HIGH REAL ESTATE, UH, COSTS.

UM, AND IN TERMS OF THE COMMUNITY BENEFITS THAT WE'RE PRIORITIZING, UH, WHEN WE THINK ABOUT THE, THE, THE PRIMARY COMMUNITY BENEFIT THAT WE'RE REALLY TRYING TO ACHIEVE WITH THIS IS JUST PROVIDING THAT AFFORDABLE SPACE.

SO HAVING LONG TERM, UH, AFFORDABLE LEASES FOR CREATIVE SPACES, LEGACY BUSINESSES, AND OTHER COMMUNITY SERVING INITIATIVES.

UM, ADDITIONAL BENEFITS WE'D BE LOOKING AT, UH, WOULD BE POTENTIALLY TIED TO, UH, OFFERING DEEPER AFFORDABILITY THAN THE BASE REQUIREMENTS OR SERVING MANY DIFFERENT, UM, UH, TENANTS OR ORGANIZATIONS, UH, THAT KIND OF THING.

AND WE'LL GET INTO THAT A LITTLE BIT MORE LATER AS WELL.

UH, NEXT SLIDE, PLEASE.

OUR, THE PLAY SPACE ENHANCEMENT PROGRAM WOULD HAVE THREE, UH, BROAD CATEGORIES.

UH, CATEGORY ONE WOULD BE, UH, CALLED AFFORDABLE SPACE.

AND ESSENTIALLY HERE, WHAT WE'RE LOOKING TO DO IS PROVIDE AN INCENTIVE, UH, GENERALLY IN THE FORM OF PROPERTY TAX REIMBURSEMENTS TO DEVELOPERS OF COMMERCIAL PROJECTS OR MIXED USE PROJECTS, UH, AND, AND AS AND, AND INCURRED AND INCENTIVIZE THEM TO INCLUDE AFFORDABLE COMMERCIAL LEASES FOR ARTS AND MUSIC VENUES AND ESTABLISHMENTS FOR SMALL LOCAL BUSINESSES AND FOR COMMUNITY DEVELOPMENT PROJECTS AND THEIR, AND THEIR PROJECTS.

SO IN THIS CASE, WE'D BE LOOKING AT A SIT AT SITUATIONS WHERE YOU HAVE A DEVELOPER OR PROPERTY OWNER

[00:40:01]

AND THEY HAVE TENANTS, UH, AND WE WOULD BE INCENTIVIZING THEM TO GIVE THOSE TENANTS AFFORDABLE LEASES.

AND THAT'S, THAT'S THE LONG AND THE SHORT OF IT.

WE WANT TO KEEP IT KEEP SIMPLE AND EFFECTIVE.

UM, THE SECOND CATEGORY, UH, WE'RE CALLING COMMUNITY IMPACT.

THIS, UH, THIS OFFERS, UH, INCENTIVES AND OTHER KIND OF SUPPORTS FOR THE DEVELOPMENT OF MORE STANDALONE HIGH IMPACT COMMUNITY DEVELOPMENT OR IMPROVEMENT PROJECTS.

UH, THAT COULD INCLUDE SORT OF STANDALONE ARTS AND MUSIC COMPLEXES, UH, OR IT COULD BE GROCERY STORES AND FOOD DESERTS, CHILDCARE FACILITIES, INDUSTRY HUBS, INCUBATORS, THAT KIND OF THING.

BUT REALLY HERE LOOKING AT THINGS, UH, WHERE IT, IT'S NOT TO A, A NECESSARILY LANDLORD OR DEVELOPER TO INCENTIVIZE AN AFFORDABLE LEASE, BUT IT'S REALLY MORE JUST AN INCENTIVE THAT CAN HELP BE WRAPPED INTO A PROJECT THAT'S SORT OF, UH, OWNER OPERATED OR OWNER DEVELOPED THAT MIGHT BE A STANDALONE FOR LIKE A, A, A VENUE OR AN ARTS COMPLEX LIKE THE CANOPY, UH, OR, UH, A GROCERY STORE IN A FOOD DESERT, THAT KIND OF THING.

AND THEN CATEGORY THREE, UH, IS WHAT WE'RE CALLING CULTURAL PRESERVATION.

SO CATEGORY ONE AND CATEGORY TWO, THEY'RE BOTH REALLY FOCUSED ON SORT OF NEW INVESTMENT, A NEW REAL ESTATE INVESTMENT, AND THE INCENTIVE TIED TO THAT.

UH, NEW PROJECTS THAT INCORPORATE AFFORDABLE, UH, SPACES, UH, NEW, NEW, UH, COMMUNITY INFRASTRUCTURE, HIGH IMPACT COMMUNITY PROJECTS.

UM, CULTURAL PRESERVATION, UH, IS NOT, DOES NOT REQUIRE, UH, NEW REAL ESTATE INVESTMENT THAT'S REALLY MORE FOCUSED ON SUPPORTING RETENTION, UH, AND IMPROVEMENTS, UH, POTENTIAL.

SO TI IMPROVEMENT, THAT KIND OF THING FOR EXISTING MUSIC VENUES, CREATIVE SPACES, LEGACY BUSINESSES AND LEGACY BUSINESSES, NONPROFITS AND CO-OPS.

UH, IN THAT CASE, WE'RE, IN THIS CASE, WE'RE REALLY GONNA FOCUS THIS ONE ON EXISTING CREATIVE SPACES AND MUSIC VENUES AND LEGACY BUSINESSES, SPECIFICALLY SMALL BUSINESSES, UH, AND NONPROFITS THAT HAVE BEEN, UH, THAT HAVE BEEN AROUND IN THE COMMUNITY FOR A LONG TIME AND ARE AN IMPORTANT PART OF THE CULTURAL FABRIC.

UM, AND IN THIS CASE, THAT ONE, AGAIN, DOESN'T NECESSARILY REQUIRE, UM, NEW REAL ESTATE INVESTMENT.

THIS IS MORE OF A, UH, PRESERVATION TOOL, UH, AND KIND OF AN ANTI DISPLACEMENT PRESERVATION TOOL.

UM, NEXT, UH, NEXT SLIDE, PLEASE.

UH, AGAIN, WHEN I TALK ABOUT KIND OF THE, THE, THE COMMUNITY BENEFIT TARGETS, THESE ARE THE SORT OF, UH, GROUPS AND ORGANIZATIONS AND PROJECTS WE'RE, WE'RE REALLY FOCUSING THIS PROGRAM AROUND.

UM, FIRST ONE, MUSIC VENUES AND CREATIVE SPACES, UH, LISTED OUT HERE.

UH, IN TERMS OF DEFINITIONS, WE'RE PROBABLY JUST, WE'LL, YOU KNOW, WE'RE, WE'RE GONNA BE USING, UH, CONSISTENT DEFINITIONS USED BY OUR DEPARTMENT, UH, TO, AS TO WHAT QUALIFIES AS MUSIC VENUES OR AS MUSICS AND CREATIVE SPACES.

UH, SECOND MAJOR CATEGORY WOULD BE COMMUNITY DEVELOPMENT PROJECTS.

UM, THAT'S THINGS LIKE, YOU KNOW, AS I WAS SAYING, GROCERY STORES IN A FOOD DESERT OR CHILDCARE CENTERS OR INDUSTRY HUBS, UH, SPECIFIC HIGH IMPACT PROJECTS THAT DOES THAT BENEFIT THE, UH, AN UNDERSERVED COMMUNITY OR THAT FILL LIKE AN INDUSTRY ECOSYSTEM GAP, LIKE, UH, LIKE A INDUSTRY INCUBATOR, UH, POTENTIALLY THAT COULD ALSO INCLUDE AFFORDABLE HOUSING THAT WE REALLY WANNA FOCUS THIS ON, UH, THE NON-RESIDENTIAL COMMUNITY BENEFITS AS THERE'S OTHER TYPES OF PROGRAMS FOCUSED ON, ON HOUSING, AND THIS IS MORE OF A ECONOMIC ORIENTED, UM, TYPE OF PROGRAM.

AND THEN FINALLY, JUST, UH, LOCAL SMALL BUSINESSES, NONPROFITS, AND CO-OPS, UH, AND AFFORDABLE SPACE NEEDS FOR, FOR THOSE.

UH, AND HERE WOULD BE, UH, YEAH, AND, AND, AND THOSE ARE KIND OF THE CORE, THE CORE ONES WE'RE LOOKING AT.

UH, NEXT, UH, SLIDE PLEASE.

UH, WE'D ALSO BE SORT OF TARGETING GEOGRAPHIES AS TO WHERE WE WANNA SEE THIS TYPE OF ACTIVITY.

UH, THIS ISN'T, LIKE, THIS WOULDN'T BE LIKE, YOU KNOW, AN OVERLY RESTRICTIVE TYPE OF TARGETING, BUT THAT IS, BUT THIS IS SORT OF LIKE WHERE WE'D BE PRIORITIZING THROUGH LIKE BONUS POINTS AND THINGS LIKE THAT.

BUT, UM, UH, ONE, THE, THE FIRST SORT OF AREA WE'D REALLY WANNA TARGET ARE CULTURAL DISTRICTS AND ECONOMIC DISTRICTS.

UM, CONTIGUOUS MICRO GEOGRAPHIC AREAS BETWEEN A QUARTER OF A MILE AND ONE AND A HALF MILE IN, IN SIZE, UH, WITH CONCENTRATIONS OF CREATIVE CULTURAL ENTERTAINMENT, HERITAGE OR COMMERCIAL ASSETS.

BASICALLY, OUR CULTURAL DISTRICTS, OUR CREATIVE DISTRICTS, OUR SMALL BUSINESS DISTRICTS.

UM, THE NEXT ONE WOULD BE EQUITABLE, UH, TRANSIT ORIENTED DEVELOPMENT OR ETOD AREAS.

UH, THOSE WERE JUST, I ADOPTED BY THE CITY FOR THE FIRST, FOR THE FIRST ROUND OF THOSE IN THE NEW OVERLAY.

BUT, UM, AS I NOTED, UH, A LITTLE BIT EARLIER, UH, THERE'S A BIG EMPHASIS ON THOSE PLANS AND HAVING FINANCIAL TOOLS TO SUPPORT AFFORDABLE GROUND FLOOR SPACE FOR, UM, SMALL BUSINESS AND CREATIVE SPACES.

SO THIS, THIS PROGRAM WOULD BE ABLE TO

[00:45:01]

SATISFY THAT REQUIREMENT.

UH, CITY LED REDEVELOPMENT INITIATIVES.

SITES ENTER WITHIN A MILE OF MAJOR CITY LED REDEVELOPMENT INITIATIVES.

THAT INCLUDES COLONY PARKS, SOUTH CENTRAL WATERFRONTS, ET CETERA, ET CETERA.

THESE ARE, THESE ARE PROJECTS THAT ARE POTENTIALLY LARGER PROJECTS, BUT THEY HAVE, UH, A VERY HIGH LEVEL OF PUBLIC SCRUTINY AND PUBLIC OVERSIGHT.

SO WE CAN ENSURE THAT, UH, WHENEVER THEY'RE USING THIS TOOL, THERE'S, THERE'S GONNA BE A LOT OF, A LOT OF EYES ON IT, AND IT'LL BE REALLY, UM, IT'LL BE, UH, REALLY DEVELOPED TO MAXIMIZE THE COMMUNITY BENEFIT NEEDS AND REQUIREMENTS, UH, THAT ARE ARTISTS OF THOSE PROJECTS.

UH, AND THEN PRIORITY EQUITY AREAS, AREAS IDENTIFIED IN THE PROJECT CONNECT ANTI DISPLACEMENT MAPPING TOOL, UH, AND OR, UH, CATALYTIC PROJECTS IN THE EASTERN CRESCENT.

BASICALLY, UH, AREAS WHERE WE CAN DO, WE CAN EN ENCOURAGE THESE TYPES OF PROJECTS IN A WAY THAT SUPPORTS MA NEIGHBORHOOD BASED EQUITY IN THE CITY.

UH, NEXT, UH, SLIDE PLEASE.

SO, WHEN I SAY AFFORDABILITY, LIKE THIS IS A BIG FOCUS.

WE'RE, WE'RE REALLY LOOKING AT AFFORDABILITY OF THESE PROJECTS AND, AND MAKING SURE THAT WHAT WE'RE PROVIDING IS AFFORDABLE, UH, CREATIVE SPACE OR AN AFFORDABLE SMALL BUSINESS SPACE.

WHAT WE'RE GONNA USE FOR THAT AS A STANDARD, UH, CURRENTLY IS 50% OF THE MARKET RATE, UH, BASED ON KIND OF A ROLLING AVERAGE OF THE INCENTIVE.

UH, ALTERNATIVELY, WE COULD USE A STABLE RENT REVENUE RATIO REQUIREMENTS.

THAT'S SOMETHING THAT, UH, THAT ANCHOR TENANTS AND, AND MALLS OFTEN USE.

INSTEAD OF PAYING LIKE, UH, TRIPLE NET, THEY'LL, THEY'LL JUST PAY A PORTION OF THEIR SALES, UH, BASED ON KIND OF INDUSTRY STANDARDS.

THAT'S SOMETHING SMALL BUSINESSES AND VENUES DON'T OFTEN AREN'T OFTEN ABLE TO DO WITH THEIR, WITH THEIR, UH, LEASES.

BUT THAT'S SOMETHING, YOU KNOW, WE CAN INCENTIVIZE IN THIS PROGRAM.

AND THEN AN ANNUAL RENT ESCALATION CAP, SO THAT, UM, YOU KNOW, THE, THESE ARE SORT OF MAINTAINED THROUGHOUT THE, THROUGHOUT THE LIFE OF THE INCENTIVE, UH, IN A WAY THAT, UH, IS, YOU KNOW, THAT THAT FITS THE VISION AND THE VALUES WE'RE TRYING TO EXPRESS HERE.

UM, IN TERMS OF WHAT WE, UH, WHAT WE'RE TALKING ABOUT IN THE FINANCING AND HOW THE VALUE OF INCENTIVES WILL BE CALCULATED, UM, THAT'LL BASICALLY BE TWO FACTORS.

UH, FOR GENERALLY SPEAKING, FOR OUR INCENTIVES, UH, THEY'RE ALL GONNA NEED TO BE, UM, UH, FISCALLY NEUTRAL OR POSITIVE TO THE CITY.

THAT MEANS, LIKE THE LONG TERM, UM, BENEFIT WILL OUTWEIGH THE COST, UH, OR EQUAL OUT TO THE COST SO THAT THE CITY'S NOT KIND OF DIGGING ITSELF INTO HOLES OVER, OVER YEARS AND YEARS WITH THESE, UH, WHICH IS VERY DOABLE WITH THESE TYPES OF PROJECTS.

THAT'S JUST KIND OF AN ANALYSIS WE RUN, AND I'LL SHOW Y'ALL SOME OF THE BACKEND STUFF OF THAT IN A, IN A MINUTE.

BUT THAT'S, THAT'S ONE FACTOR.

BUT THE OTHERWISE, WHAT WE'D BASICALLY BE LOOKING AT, UH, IN TERMS IN, IN TERMS OF THE VALUATION OF THE INCENTIVE, UH, WOULD BE, UH, LOOKING AT WHAT THE, WHAT THE PROJECT, UH, WOULD, UH, WOULD NEED TO FILL IN TERMS OF A GAP TO BE, UH, PRODUCED IN A WAY THAT GENERATES THE COMMUNITY BENEFITS WE'RE ASKING FOR.

SO WHAT THAT MEANS IS, LET'S SAY YOU'RE THINKING ABOUT A CATEGORY ONE, THAT AFFORDABLE SPACE.

YOU'VE GOT A MIXED USE PROJECT, AND YOU WANNA PUT, UH, YOU WANNA MAKE IT A CREATIVE COMPLEX.

YOU WANNA PUT A, YOU KNOW, YOU'RE GONNA HAVE A MIX OF OFFICE AND HOTEL SPACE, BUT YOU WANNA ALSO HAVE SOME, UH, AFFORDABLE VENUE SPACE AND ART WORKSHOPS IN THERE.

UM, WE'D, WE WOULD ASK THE DEVELOPER TO PROVIDE, UH, BASIC FINANCIAL INFORMATION ABOUT THE PROJECT AND DEMONSTRATE, UH, HOW MUCH, UM, PROVIDING THE, THOSE TYPES OF COMMUNITY BENEFITS WOULD IMPACT THE, THE TOTAL BUDGET.

AND WE'D USE THAT GAP.

THAT WOULD BE SORT OF THE GAP WE'D USE TO SIZE THE, THE VALUE OF THE INCENTIVE, YOU KNOW, ESSENTIALLY SAYING, BUT FOR THIS INCENTIVE, WE CAN'T DO THIS.

WE CAN'T DELIVER THIS PROJECT WITH THE COMMUNITY BENEFITS THAT WE'RE TRYING TO ACHIEVE.

SO THAT'S, THAT'S WHERE THE INCENTIVE WOULD COME IN.

AND THEN THOSE INCENTIVES WOULD BE IN THE FORM OF AN PRIMARILY IN THE FORM OF ANNUAL REIMBURSEMENT OF PROPERTY TAXES AND POTENTIALLY SALES TAXES OR, UH, SALES TAXES ON CONSTRUCTION SUPPLIES, UH, DEPENDING ON WHAT MADE THE MOST SENSE IN THE PROJECT.

UH, NEXT SLIDE, PLEASE.

THESE ARE SOME OF THE ADDITIONAL BONUS POINTS THAT MIGHT BE, THAT ARE RELEVANT FOR SCORING FOR ANY OF THESE, FOR ANY THESE TYPES OF PROJECTS, IT'S, IT'S A LITTLE SIMILAR TO, UH, THE PROCESSES THAT ARE IN, IN OUR OTHER, UH, DEPARTMENTAL PROGRAMS WHERE, YOU KNOW, YOU GET SORT OF POINTS AND SCORED BASED ON, ON DIFFERENT CRITERIA OF THE PROJECTS.

BUT, YOU KNOW, YOU DON'T HAVE TO PROVIDE THESE THINGS HERE JUST TO GET THE INCENTIVE FOR THESE THINGS.

BUT THESE, THE, THE LARGER, UH, THE MORE OF THESE, THE MORE OF THESE A PROJECT WOULD PROVIDE, THE HIGHER THEIR SCORING WOULD BE, AND THE HIGHER THEIR SCORING WOULD BE, THE LARGER THE INCENTIVE THEY COULD POTENTIALLY RECEIVE.

[00:50:01]

BUT IT'S THINGS, UM, UH, LIKE HAVING A RIGHT TO RETURN FOR AN EXISTING CREATIVE SPACE, UH, OR SMALL BUSINESS AT A REDEVELOPMENT SITE, OR PROVIDING TEMPORARY RELOCATION ASSISTANCE TO AN EXISTING SITE OR CO-LOCATION, OR PROVIDING MULTIPLE AFFORDABLE SPACES TO LOTS OF DIFFERENT BENEFICIARIES.

UH, LIKE IF YOU'RE, IF YOU ARE PROVIDING, UM, YOU KNOW, 20 ARTIST WORKSHOPS INSTEAD, OR, OR STUDIOS INSTEAD OF ONE, YOU GET, YOU KNOW, THAT'S, THAT, THAT WOULD BE AN APPROPRIATE REASON TO GET SOME ADDITIONAL POINTS AND ADDITIONAL, UH, CONSIDERATION.

UM, BUT GENERALLY, YOU KNOW, FACTORS, FACTORS OF THAT TYPE, AND ESPECIALLY THINGS LIKE OFFERING, IF YOU WANT, YOU KNOW, WE HAVE A BA, WE HAVE A BASELINE REQUIREMENT, WE HAVE BASELINE REQUIREMENTS FOR AFFORDABILITY AND AFFORDABLE TERMS. BUT IF YOU WANT TO OFFER, UH, EVEN LOWER, UH, RATES OR BETTER AFFORDABILITY OR LONGER TERMS FOR AN AFFORDABLE LEASE, UH, OR LONGER LEASES OR, UH, MORE SUBSTANTIAL, UM, UH, RENT, YOU KNOW, KIND OF RENT ESCALATION CAPS, UH, THOSE SORTS OF THINGS COULD BE, UH, UH, WOULD, WOULD GENERATE ADDITIONAL BONUS POINTS.

UM, REALLY, UH, AND, AND JUST THE THING TO KEEP IN MIND HERE IS A LOT FOR MOST OF THESE, THEY NEED TO BE THINGS THAT SORT OF MAKE SENSE FROM, IN TERMS OF GOING TO, UH, THE, THE TYPE OF PRO LIKE, YOU KNOW, THEY'D HAVE TO BE SORT OF, UH, THEY'RE, THEY'RE GOING TO BE SORT OF, UM, UH, DETERMINED BY THE TYPE OF CATEGORY, THE TYPE OF PROJECT, RIGHT? SO FOR LIKE AN AFFORDABLE SPACE INCENTIVE, IF WE'RE INCENTIVIZING A DEVELOPMENT TO INCLUDE AFFORDABLE LEASES, WE'RE REALLY GONNA BE FOCUSING ON JUST LIKE THE NATURE OF THOSE LEASES RATHER THAN LIKE TRY AND, UM, REGULATE THINGS HAPPENING IN THE RECIPIENTS OF THOSE LEASES.

'CAUSE THAT'S SOMETHING THAT YOU, WE CAN'T REALLY CONTROL THAT WAY DIRECTLY THROUGH THAT KIND OF INCENTIVE WITH THE DEVELOPER BEYOND SOME VERY, LIKE, KINDA HIGH LEVEL PARAMETERS.

UM, BUT THAT'S, THAT, THAT'S KIND OF THAT, THAT FOCUS.

UM, LET'S SEE.

NEXT SLIDE WE MIGHT BE, YEAH.

UH, SO IN THIS ONE, UM, I'M JUST SORT OF GOING AND, AND NOW I WAS JUST GONNA KIND OF GO VERY QUICKLY, UH, UNDER THE HOOD A LITTLE BIT AND SORT OF SHOW Y'ALL SOME OF THE, WHAT THIS WOULD LOOK LIKE IN PRACTICE, UH, AND SOME OF THE ANALYSIS WE DO ON THAT.

UM, THIS IS AN EXAMPLE IN THAT AFFORDABLE SPACE CATEGORY I WAS TALKING ABOUT.

UH, THIS WOULD BE A PROJECT THAT INVOLVED, AND THESE ARE ALL JUST HYPOTHETICALS.

YOU KNOW, THESE AREN'T, THESE AREN'T PROJECTS COMING FORWARD JUST YET OR ANYTHING LIKE THAT.

THIS IS JUST, UH, ILLUSTRATIVE PURPOSES.

UM, IN THIS CASE, THERE'D BE A, A MIXED USE BUILDING WITHIN THE EQUITABLE TOD ZONE.

UM, THAT WOULD MEAN, UH, AND IN THIS, IN THIS CASE, A PROJECT WOULD BE TRYING TO DEVELOP A 12 STORY BUILDING, UH, THAT INCLUDED A LIVE THEATER ON THE GROUND FLOOR, UH, $20 MILLION, UH, TOTAL CAPITAL INVESTMENT, WHICH IS, YOU KNOW, ACTUALLY PROBABLY LOW FOR THAT, BUT WE'LL JUST GO WITH THAT.

UM, AND THE BENEFIT THEY'D BE OFFERING IS THAT ON THAT GROUND FLOOR, WHICH WOULD, UH, JUST BE A PORTION OF THEIR TOTAL BUILDING FOOTPRINTS, UH, THEY'D BE OFFERING THE THEATER, UH, AND AFFORDABLE LEASE FOR 10 YEARS AT $15 PER SQUARE FOOT, WHICH IS ABOUT HALF OF WHAT, UM, THE MARKETY WOULD BE IN CERTAIN, IN, IN, IN SOME AREAS OF THAT, OF THAT ZONE.

UH, SO IN THE PROJECT IT SAYS, YOU KNOW, THAT THAT MEETS QUITE A BIT IN TERMS OF WHAT WE'D BE TRYING TO SEE.

THEY'D BE HAVING AN AFFORDABLE CREATIVE SPACE AS A TARGET.

THEY'D BE DOING IT IN A TARGET GEOGRAPHY AND ETOD AREA NEAR TRANSIT, AND THEY'D BE OFFERING, UH, A LONG LEASE TO THE, UH, TO THE TENANT.

SO IN THAT CASE, THIS WOULD ALLOW, THIS WOULD BE A PROJECT WHERE WE COULD DO TAX REIMBURSEMENTS ON, ON THE NEW CONSTRUCTION, UH, NOT JUST ON LIKE THE PARTICULAR SPACE FOR THE THEATER, BUT ON THE PROJECT ITSELF, ON THE WHOLE SITE THAT COULD BE USED TO OFFSET THE COSTS OF DELIVERING THAT AFFORDABLE SPACE TO THE TENANT.

UM, NEXT SLIDE, PLEASE.

THIS JUST KIND OF GETS UNDER THE HOOD A LITTLE BIT AND, AND SHOWS YOU THIS SORT OF ANALYSIS.

WE DO, WE BASICALLY HAVE TO BALANCE THE, THE, THE NET COST TO THE CITY WITH THE NET IMPACTS AND THE NET BENEFITS IN THIS CASE, BECAUSE WE'RE HAVING, YOU KNOW, A LOT OF, UH, NEW REAL ESTATE CONSTRUCTION, UH, AND NEW CONSTRUCTION IMPACT, WE COULD OFFER PRETTY SUBSTANTIAL INCENTIVE AND STILL BE NET POSITIVE, UH, FOR THIS TYPE OF PROJECT.

UM, AND THAT, THAT CREATES THE SPACE THAT WE CAN USE TO, TO DO INCENTIVES FOR THAT AFFORDABLE CREATIVE SPACE.

UH, NEXT SLIDE.

WE'LL JUST GO PAST THIS ONE.

'CAUSE THIS IS MORE KIND OF A SPECIAL, THIS IS A KIND OF A SPECIFIC ONE, BUT IT'S

[00:55:01]

REALLY, IT'S ANOTHER EXAMPLE OF THAT COMMUNITY IMPACT CATEGORY I WAS TALKING ABOUT.

SO A GROCERY STORE IN A FOOD DESERT.

UM, THE REAL TAKEAWAY FROM THIS IS THAT GROCERY STORES ARE HARD.

SO IF YOU GO TO THE NEXT SLIDE, UH, YEAH, IT'S, IT'S VERY HARD TO MAKE THEM BALANCE.

SO THAT'S JUST SOMETHING WHERE WE'RE GONNA HAVE TO THINK THROUGH A LOT, BUT IT, IT'S NOT AS GERMANE TO THIS, THIS CONVERSATION.

UM, LET'S GO TO THE, THE NEXT SLIDE.

UM, AND THIS ONE'S A LITTLE MORE INTERESTING.

IN THIS CASE, I USED A LIVE PERFORMANCE VENUE, AGAIN, AS SORT OF EXAMPLE, JUST A STANDALONE, THIS IS CULTURAL PRESERVATION CATEGORY.

SO IN THIS CASE, WE'D BE SAYING, THERE'S IN A SITUATION WHERE THERE'S A LIVE THEATER, UM, AND THEY, THEY FACE REAL ESTATE RELATED COSTS THAT ARE VERY BURDENSOME AND THREATENED TO POTENTIALLY CLOSE THEM OR SUBSTANTIALLY REDUCE THEIR VIABILITY.

UM, AND THEY'RE APPLYING FOR THIS INCENTIVE TO HELP, UH, PRESERVE THEIR SITE AND DO ADDITIONAL SITE IMPROVEMENTS, UM, AT A PRETTY, AT A, AT A PRETTY DECENT SCALE.

UM, WHAT'S INTERESTING ABOUT THIS, AND I THINK THIS IS A REALLY COOL THING THAT I, I, I SHOULD HAVE KNOWN, BUT I REALIZED EVEN MORE, REALIZED MORE CLEARLY WHENEVER I STARTED RUNNING NUMBERS AND DOING ANALYSIS.

UM, UH, AND, AND I, AND Y'ALL ARE I'M SURE VERY FAMILIAR WITH THIS, BASED ON OUR HOTEL OCCUPANCY TAX TYPE PROGRAMS, UH, OUR, OUR, UH, ARTS AND MUSIC INFRASTRUCTURE IN AUSTIN GENERATE A LOT OF TOURISM THAT IS DOCUMENTED AND WELL DOCUMENTED.

AND THE THING THAT'S GOOD ABOUT TOURISM FROM LIKE AN ECONOMICS, KIND OF ECONOMIC DEVELOPMENT 1 0 1 PERSPECTIVE IS THAT FOR CITIES, UH, YOU ENCOURAGE A LOT OF PEOPLE TO COME FROM OUTSIDE THE CITY, UH, HANG OUT, SPEND A LOT OF MONEY, UH, RENT HOTEL ROOMS, EAT AT RESTAURANTS, AND BUY STUFF, AND THEN GENERALLY LEAVE THE CITY BEFORE THEY, THE CITY HAS TO SPEND EXTRA MONEY ON THEM.

SO THIS, I MEAN, THIS IS SORT OF WHY CITIES LIKE TO DO THINGS LIKE, YOU KNOW, SPORTS STADIUMS, BUT, UM, I MEAN, AND FUNCTIONALLY JUST FROM LIKE A ECONOMIC DEVELOPMENT PERSPECTIVE, UH, OUR VENUES THAT, THAT DO THIS KIND OF TOURISM, UH, ARE, YOU KNOW, THEY FUNCTION LIKE SMALL VERSIONS OF THAT.

THEY PROVIDE A HUGE AMOUNT OF, UH, REVENUE, NOT JUST IN HOT TAXES, BUT IN SPILLOVER SALES TAXES THAT COME FROM RESTAURANTS AND EVERYTHING ELSE ASSOCIATED WITH THE STAYS THAT ISN'T NECESSARILY CAPTURED THAT WAY.

THAT IF YOU GO TO THE NEXT SLIDE, THAT'S REALLY INTERESTING, AND YOU CAN SEE HERE, BECAUSE HERE, AND, AND, AND I COULD HAVE USED THIS USING KIND OF AN AMALGAMATION OF DIFFERENT DATA WE HAD FROM DIFFERENT, UM, UM, UH, VENUES OVER THE YEARS IN AUSTIN AS TO SORT OF MAKE SURE I WAS GROUND TRUTHING IT.

BUT, UM, THEY, WHENEVER YOU FACTOR IN ALL OF THOSE EXTRA SPILLOVER COSTS, SPILLOVER VALUES FROM SALES AND OTHER KIND OF, NOT DIRECTLY HOTEL TAXES, BUT LIKE SPILLOVER THINGS RELATED TO THAT TOURISM, UM, THE TOTAL ECONOMIC IMPACT IS HUGE.

AND THAT ALLOWS US TO JUSTIFY REALLY, UH, MEANINGFUL INCENTIVES OVER, YOU KNOW, THE LIFE OF THE, THE LIFE OF THE TERM.

IN THIS CASE, THE MODEL I PICKED, UH, THE MODEL I USED WAS SORT OF, YOU KNOW, UH, ALMOST A MILLION DOLLARS OVER 10 YEARS.

AND IN TERMS OF INCENTIVE, UH, AND THAT, AND IT'S, THE CITY STILL COMES OUT POSITIVE BECAUSE, AND IT'S BECAUSE PRIMARILY OF THAT HEAVY IMPACT FROM, UH, SPILLOVER, UH, THAT, THAT COMES WITH THAT.

SO, UH, A LOT OF, A LOT OF, UH, CONFIDENCE IN, IN THESE PROGRAMS BEING FISCALLY POSITIVE IN A LOT OF WAYS.

UH, LET'S SEE, NEXT SLIDE.

THIS, UH, THIS ALSO, AND THIS JUST KIND OF SUMMARIZES SOME OF THE OTHER COMMUNITY BENEFITS THAT ARE, WE'RE GONNA BE TAKING ACCOUNT OF, UH, A LOT OF THESE PROJECTS ARE GONNA, WOULD INVOLVE NEW, UH, REAL ESTATE CONSTRUCTION, AND WE ALREADY HAVE VERY STRONG COMMUNITY BENEFITS REQUIREMENTS IN OUR INCIDENT PROGRAMS AROUND REAL ESTATE.

UH, WE'RE NOT, WE'RE NOT PROPOSING TO CHANGE ANY OF THOSE OR MODIFY THEM.

WE, YOU KNOW, THEY'RE, THEY'RE GOOD.

IT'S IMPORTANT TO FOCUS ON LIVING WAGES AND PREVAILING WAGES AND STUFF, AND BRING EVERYBODY UP WITH THESE INCENTIVES.

SO WE'RE, WE'RE, WE'RE KEEPING THOSE AND, UM, YOU KNOW, OSHA CONSTRUCTION AND, AND ALL THAT.

SO, UM, THAT'S JUST KIND OF AN OVERVIEW JUST TO, JUST TO MAKE SURE FOLKS KNOW WE'RE NOT, WE'RE NOT WATERING ANY OF THOSE DOWN FOR THIS PROGRAM.

WE'RE JUST, WE'LL BE USING THEM AS THE BASELINE, UH, AND NEXT SLIDE.

AND I THINK THAT MIGHT'VE BEEN IT.

YEAH.

AND THAT WAS, THAT WAS THE END OF THE PRESENTATION.

UH, IN TERMS OF NEXT STEPS FOR Y'ALL, I'M GONNA BE, UH, YOU KNOW, WE'RE, WE'RE, WE'RE DOING PRESENTATIONS TO, UH, COMMISSIONS AND OTHER STAKEHOLDER GROUPS NOW.

UH, I'LL BE MEET, I'VE MET WITH A FEW, UH, DEVELOPER OR DEVE