* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. UP QUORUM. [00:00:01] GOOD AFTERNOON. UH, WELCOME TO THIS SEPTEMBER 22ND, 2026 MEETING OF THE FINANCE COMMITTEE. I CALL THIS MEETING TO ORDER AT 1:07 PM AND THE FIRST [MINUTES] ITEM ON THE AGENDA IS THE MINUTES. UH, DO I HAVE A MOTION FOR APPROVAL OF THE AUGUST 20, 24TH MINUTES? IT'S A MOTION AND A SECOND. ALL THOSE, UH, IN FAVOR SAY AYE. ANY OPPOSED? MOTION CARRIES. OKAY. I DO PLAN ON TAKING UP PROCUREMENT A LITTLE BIT EARLIER, BUT [BRIEFING ITEMS (Part 1 of 2)] WE'LL START UP WITH BRIEFING ITEM A, UM, KAY BAILEY HUTCHINSON CENTER FINANCING PLAN UPDATE. I'LL INVITE DIRECTOR FLEMING TO COME TO THE PODIUM. GOOD AFTERNOON. I'M ROSA FLEMING, DIRECTOR FOR CONVENTION AND EVENT SERVICES, AND WE ARE HERE TODAY TO PROVIDE YOU AN UPDATE. WE LAST SPOKE TO COUNSEL JANUARY AND MARCH OF 2026, PROVIDING AN UPDATE IF YOU COULD ADVANCE THOSE SLIDES, PLEASE. NEXT PAGE. AND PROVIDED BOTH AN UPDATE ON WHERE THE PROJECT WAS IN JANUARY, THEN CAME BACK IN MARCH AND PROVIDED A FINANCE UPDATE. AT THAT TIME, WE HAD ALREADY AWARDED GMP ONE THROUGH THIS BODY. UM, AND THEN WE WERE WORKING ON GMP TWO. WE'VE SINCE ADVANCED TO GMP TWO. SO TODAY WE ARE PROVIDING YOU AN UPDATE ON OUR BONDING TIMELINE, OUR EXTENSION REQUEST FOR THE BRIDGE LOAN, AND A FINANCING UPDATE. NEXT PAGE. WE PROVIDE THIS IN ALL OF OUR BRIEFINGS, WHICH IS JUST A REMINDER ON COMPONENT ONE, WHICH IS OUR FOCUS TODAY OF THE TEAM THAT MAKES UP THE PROJECT TEAM FOR THIS PROJECT, INCLUDING THE CITY OF DALLAS. SO YOU'VE GOT PROBABLY 14 CITY DEPARTMENTS THAT WORK TIRELESSLY ON THIS PROJECT, ALONG WITH INSPIRE DALLAS MARSH, WHO IS OUR OCIP OR OWNER CONTROLLED INSURANCE PROVIDER, AND OUR ARCHITECTURE AND ENGINEERING TEAM, PERKINSON WILL AND POPULACE, AND TRINITY ALLIANCE, WHO IS HERE TODAY ALONG WITH INSPIRE TO HELP US ANSWER SOME QUESTIONS AND PROVIDE YOU AN UPDATE. NEXT SLIDE. SO WHAT I'M GONNA DO NOW IS TURN THIS OVER TO ANGELA DANIEL, WHO IS A SENIOR VP FOR PROJECT MANAGEMENT AT INSPIRE DALLAS, AND SHE WILL PROVIDE YOU THE NEXT FEW SLIDES PROVIDING YOU AN UPDATE ON WHERE WE ARE WITH DEMOLITION AND CONSTRUCTION ON THE PROJECT. GOOD AFTERNOON. UH, DEMOLITION OF THE KAY BAILEY HUTCHINSON CONVENTION CENTER HALLS D, E, AND F IN THE TXCM BUILDING GARAGE COMMENCED IN FEBRUARY AND WILL CONTINUE THROUGH DECEMBER OF 2026. OVER 131,000 WORKER HOURS HAVE CONTRIBUTED TO THE COMPLETE DEMOLITION OF HALL D AND THE PROGRESS ON HALL E TO DATE. AND WE HAVE A FEW PHOTOS IN THE COMING SLIDES THAT WE'LL SHARE. HALL F STRUCTURAL DEMOLITION IS ONGOING AND IS BEING COORDINATED WITH UNION PACIFIC RAILROAD, DART AND, AND TEXT DOT, UH, TO AVOID ANY INTERRUPTIONS TO THE ONGOING I 30 CANYON IMPROVEMENTS, UH, AND ONGOING RAIL, UH, BOTH FREIGHT AND LIGHT RAIL OPERATIONS. DEMOLITION OF THE TXCN BUILDING AND GARAGE IS COMPLETE AND CLEANUP IS WRAPPING UP ON THIS SECTION OF THE SITE. UH, DEMOLITION OF THE VERTA PORT, UH, IS SCHEDULED TO BEGIN IN THE NEXT 30 TO 45 DAYS. SO KICKING OFF Q4 OF 2026, UH, ALL THROUGHOUT DEMOLITION AIR QUALITY IS BEING MONITORED, UH, BY, UH, TESTING AGENCY C AND THE 2027 LOOK AHEAD INVOLVES GRADING, UH, UTILITIES, INSPECTIONS AND SITE UTILITIES RELOCATIONS. UH, THOSE WILL CONTINUE ON THROUGH 2027, UH, AND THEN LATE IN 2026 AND INTO 2027 WILL BEGIN PEER DRILLING PEER CAPS, UH, IN PREPARING THE SITE FOUNDATIONS, UH, AND STRUCTURE, WHICH WILL CONTINUE FROM 2027 ALL THE WAY INTO 2028. NEXT SLIDE. THIS IS A REALLY, THIS IS A PRE DEMOLITION PHOTO HERE LOOKING WEST. UM, YOU'RE, WHAT YOU'RE SEEING HERE, UH, ALONG MEMORIAL AND GRIFFIN, UH, YOU CAN SEE THE DART RAIL. UM, AND THIS IS LOOKING AT HALLS, UH, C, D, [00:05:01] E, AND F, UH, AND THEN WE WILL SHOW PROGRESS ON THE NEXT SLIDE WITH CONTINUING OPERATIONS EVENTS. UM, PART OF THE ENABLING ACTIVITIES FOR THE CONVENTION CENTER PROGRAM INVOLVED PREPARATIONS FOR THE FIFA INTERNATIONAL BROADCAST CENTER, WHICH WAS OPERATED SUCCESSFULLY IN HALLS A, B, AND C BETWEEN MAY OF 2026 AND AUGUST OF 2026. PRIOR TO THAT MOVE IN, UH, A TECHNICAL SATELLITE YARD WAS CONSTRUCTED AND RENOVATIONS WERE MADE INSIDE THE BUILDING TO ENSURE THAT HALL'S A, B, AND C HAD CONTINUOUS OPERATIONS. WHILE DEMOLITION WAS BEGINNING ON THE ADJACENT SITE, UH, POST FIFA CLIENTS BEGAN MOVING INTO HALL'S A, B, AND C BEGINNING SEPTEMBER 8TH, UH, WITH A FULL COMPLIMENT OF REVENUE GENERATING CLIENTS TO FOLLOW IN HALL'S A, B, AND C, WHICH REMAIN ACTIVE, UH, FOR THE COMING YEARS. IN THESE PHOTOS, WHAT YOU'LL SEE, UM, TO THE LEFT OF OCTOBER, 2025, UH, THE LARGE, UH, SECTION WITH TREES WAS WHERE THE NEW FIFA TECHNICAL YARD WAS, UH, CONSTRUCTED. ON THE RIGHT, YOU SEE IT AS A CONCRETE PAD, BASICALLY, UH, THAT WILL REMAIN IN PLACE AND PROVIDES, UH, LOGISTICS AND LOADING DOCK SPACE FOR CONTINUING OPERATIONS FOR HALLS A, B, AND C. NEXT SLIDE, A BETTER PICTURE OF THE LOADING DOCK IN THE TECHNICAL YARD ON THE LEFT, THE LOOKING WEST IMAGE CLEARLY SHOWS THAT TECHNICAL YARD AND THE LOADING DOCK WITH TRUCKS IN THE BAYS. AND THEN LOOKING EAST IN THE IMAGE ON THE RIGHT HAND SIDE, YOU CAN ACTUALLY SEE THE TRUCK RAMP, UH, THAT WAS CONSTRUCTED TO SERVE THIS LOADING DOCK. UH, AND THAT TRUCK RAMP IS A KEY ELEMENT THAT ENABLES HALL'S AB AND C TO REMAIN OPERATIONAL AND CONTINUE GENERATING REVENUE EXPOUNDING UPON THAT TRUCK RAMP. IT WAS COMPLETED IN MAY OF 2026, AND AGAIN ALLOWS UN UNINTERRUPTED ACCESS TO THE LOADING DOCK AND HALLS AB AND C WHILE CONSTRUCTION IS CONTINUING ON IN DEMOLITION, UH, WEST OF LAMAR. THIS IS A GOOD FEW MONTH PROGRESS IMAGE HERE FOR DEMOLITION. ON THE LEFT FROM APRIL OF 2026. YOU SEE HU D BEGINNING TO BE DEMOLISHED, UH, AND YOU CAN SEE THE SEPARATION BETWEEN C AND D. UH, ON THE RIGHT. AS OF SEPTEMBER, ALL OF HALL D IS DEMOLISHED. THE MAJORITY OF HALL E IS DEMOLISHED AND F HAS BEGUN. NEXT SLIDE. THE TXCN BUILDING HAS ALSO DEMOLITION, HAS ALSO BEEN COMPLETED AT THE TXCN BUILDING, AND THAT CONSISTED OF A, UH, TWO STORY STRUCTURE AS WELL AS A PARKING GARAGE. SO ON THE IMAGE ON THE RIGHT, YOU CAN SEE THAT SITE THAT HAS BEEN CLEARED. ALL RIGHT, AND THEN WE'VE GOT A VIDEO HERE, UH, FOR CONS, UH, DEMOLITION PROGRESS, AND WE CAN COME BACK TO THE VIDEO IF THERE'S SOME TROUBLE GETTING THAT VIDEO TO PLAY, BUT IT SHOULD PLAY WITH A RIGHT CLICK. OKAY. DO YOU WANNA TALK TO SUSTAINABILITY WHILE SHE'S WORKING? YEAH, WE CAN, UH, ADVANCE. UH, SO PART OF THE DEMOLITION ACTIVITIES INVOLVE ONE OF THE KEY SUSTAINABILITY INITIATIVES ON THE, ON THE PROJECT, WHICH IS, UH, MATERIAL SORTING AND RECYCLING. UH, RIGHT NOW OUR RECOVERY RATE OR RECYCLING RATE IS TRACKING AT 84% OF ALL MATERIALS, UH, WHICH EXCEEDS OUR 75% GOAL, WHICH IS THE TARGET TO MEET LEAD GOLD CERTIFICATION. WASTE MATERIALS ARE SORTED ON SITE BEFORE BEING LOADED INTO TRUCKS AND HAULED AWAY ACCORDINGLY. THE RECYCLING ACTIVITIES ARE, UH, A, UH, IN PART FOR LEAD GOLD, UH, AND ALSO FOR THE CCAP PROGRAM. UH, AGAIN, OUR OVERALL WASTE DIVERSION, UH, GOAL IS 75%. WE ARE IN EXCESS OF THAT AT 84% AND NEARLY 70 MILLION POUNDS OF WASTE MATERIAL. UM, THE ITEMS THAT ARE BEING SEPARATED AND TRACKED FROM A RECYCLING STANDPOINT, UH, THE LARGEST IS [00:10:01] CONCRETE AND THEN FOLLOWS METAL, ASPHALT, WOOD CARPET, TILE, ACOUSTIC CEILING TILE, CARDBOARD, WOOD, AND THEN COMMINGLED WASTE, WHICH IS SEPARATED. UM, TO DATE, THE RECLAIMED CARPET IS APPROXIMATELY 97,000 POUNDS AND CEILING TILES THAT WERE RECLAIMED FROM THE EXISTING HALL C, D AND E WERE IN EXCESS OF 53,000 POUNDS. OUR, UH, IMPACT TO DATE FOR THE TAKE BACK PROGRAM, WHICH INCLUDES CARPET AND CEILING TILES, IS THE 8,976 METRIC TONS EQUIVALENT OF CARBON DIOXIDE OFFSET. SO THIS IS A SIGNIFICANT, UH, RECYCLING EFFORT, UH, AND CONTRIBUTION TO THE CITY CAP, UH, STANDARDS AND GOALS. ADDITIONAL SUSTAINABILITY INITIATIVES, UM, INVOLVE, UH, POTENTIAL ONSITE AND OFFSITE PHOTOVOLTAIC PANELS, UH, WHICH WILL ONSITE OPPORTUNITIES INVOLVE THE EXHIBITION HALL ROOF, UH, THE DOCK TOP OF THE DOCK, AND LOT E. AND THEN WE'VE ALSO GOT THE POTENTIAL FOR AN ADDITIONAL 16 MEGAWATTS OF OFFSITE PHOTOVOLTAIC. THE DESIGN EVOLUTION OF THE PROJECT, WHICH IS AT, UH, 50% CDS AT THIS STAGE, UH, AND ON TRACK FOR A HUNDRED PERCENT CDS IN DECEMBER OF THIS YEAR, UH, INCLUDES THIS SHIFT, WHICH YOU'VE PROBABLY SEEN BEFORE IN PREVIOUS PRESENTATIONS FROM, UH, MAY OF 2025 TO JUNE OF 2026, INCLUDING THE SIGNIFICANT DESIGN DEVELOPMENTS THAT OPTIMIZED THE BUILDING AREA, UH, SIMPLIFIED AND IMPROVED VERTICAL CONSTRUCTION AND EFFICIENCIES THROUGHOUT THE BUILDING INCLUSIVE OF CUSTOMER FEEDBACK. THANK YOU, ANGELA. AND SO WE WALKED YOU THROUGH THAT. SO AS WE GET TO THE SOURCES AND USES, WE CAN EXPLAIN TO YOU WHAT'S BEEN SPENT AND WHAT'S BEEN ENCUMBERED THROUGH THE PROJECT. AND WE'LL START FIRST WITH 19 WHERE, UM, KNOWING AND I WILL WALK THROUGH WHAT THE ESTIMATED FUNDING SOURCES ARE AND WHERE WE ARE IN APPROVAL ON GMPS TO DATE. SO IF YOU LOOK AT THE, THE RIGHT SIDE, THESE ARE ACTIONS THAT ALREADY CAME TO CITY COUNCIL. THEY'RE PART OF THAT $1 BILLION NOTE THAT WE TOOK OUT, AND WE ARE WORKING THROUGH IT. WE'LL ADVANCE IN A MINUTE, UH, TO SHOW YOU KIND OF WHAT THAT WORK IS AND WHERE WE ARE IN TERMS OF EXPENDITURES AND THE WORK AND HOW IT CORRELATES FROM THE SLIDES THAT YOU JUST SAW. ON THE LEFT SIDE ARE THE ESTIMATED FUNDING SOURCES AS WE MOVE FORWARD IN THE PROJECT. AND SO WE DO HAVE, AND WE'LL TALK A LITTLE BIT MORE ABOUT IT ON, ON A FUTURE PAGE, THE DEBT ISSUANCE FOR REVENUE BONDS THAT WE HOPE TO BRING BACK TO YOU IN Q1 OF 2027. AND YOU'LL SEE THERE, THAT'S $1.7 BILLION. UM, THAT WILL BE TAKE, WHICH WILL INCLUDE THE TAKEOUT OF THE BILLION DOLLAR NOTE. THERE'S INTEREST INCOME THAT WE'VE ACCRUED AND FORECASTED UP THROUGH THIS, THE END OF FOURTH QUARTER 2026. YOU'LL SEE THAT THERE. THERE'S ALSO THE CAPITAL CONSTRUCTION FUNDS. NOW, THOSE ARE THE FUNDS THAT ARE IN THE CONVENTION AND EVENT SERVICES BUDGET THAT YOU SEE AND YOU'VE, YOU'VE APPROVED AS OF THE OTHER DAY WHEN YOU APPROVED THE BUDGET, THE STATE INFRASTRUCTURE BANK LOAN WAS BROUGHT TO YOU AS AN APPLICATION, AND IT'S GONE THROUGH A FEW ITERATIONS WHERE ANTICIP AND EXPECTING THAT BY THE END OF THE CALENDAR YEAR, WE'LL, UH, RECEIVE, UH, NOTIFICATIONS OF FUNDS FROM, UH, FROM THE T OFFICE FOR THE SIB LOAN. WE ALSO HAVE WHAT WE'VE COLLECTED TO DATE WITH OUR 80% OF BRIER AND THE PROJECT FINANCING ZONE. SO YOU'LL SEE THERE THAT'S 293 MILLION COLLECTED SINCE, UH, 2022. THEN WE HAVE OUR HOT COLLECTIONS, WHICH IS THE LOCAL HOT, OUR REGULAR COLLECTIONS THAT WE DO ANNUALLY AND THE PROJECTION THROUGH THE END OF THE YEAR. AND THEN THE LAST THREE ITEMS ARE THINGS THAT WE ARE CURRENTLY WORKING ON. WE'VE BEEN WORKING, AS YOU KNOW, WITH THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS TO PROVIDE SOME FUNDING FOR TRANSPORTATION RELATED ITEMS. THERE ARE SOME AS ASSET SALES THAT WILL COME TO YOU IN THE FUTURE, UH, FOR POLICY RECOMMENDATION AS WELL AS NAMING RIGHTS. WE WE'LL DO POLICY RECOMMENDATION FOR THAT TO THIS BODY AS WELL, UM, KNOWING, OR DO YOU HAVE ANYTHING ELSE TO ADD? OH, LOOKING IN THE WRONG DIRECTION. SO BASICALLY, UM, IN A NUTSHELL, THE 3,000,000,080, BUT I WOULD SAY, UH, A, A GOOD 800 MILLION IS ANCILLARY FUNDING SOURCES, WHICH INCLUDE THE NAMING RIGHTS, SALE OF ASSETS, AND THE COG [00:15:01] PARTICIPATION. ALL ELSE IS EITHER BOND FINANCE AND CASH, UH, THAT HAS BEEN ACCUMULATED THROUGH THE YEARS AS, UH, AS THE HUT HAS BEEN IN PLACE. UH, WE'RE PRETTY CONFIDENT, RIGHT, STEVE JOHNSON WITH HILLTOP SECURITIES, THAT THE BILLIONAIRE FINANCING IS DESPITE THE FACT THAT MARKET VOLATILITY THAT WE CAN GET OUT THERE AND TAKE THE, THE, YEAH, WE CONTINUE TO MONITOR THE, UM, STRUCTURE ON THE BOND ISSUE. UH, OF COURSE, WE'RE WAITING FOR AN UPDATE ON THE HVS STUDY, UH, WHICH SHOULD COME OUT IN THE NEXT WEEK OR SO, AND USING THAT TO MODEL THE, THE STRUCTURE OF THE BOND ISSUE ALONG WITH AVAILABLE HOT AND BRIER REVENUE AND PFC REVENUE. BUT RIGHT NOW, THE CURRENT ESTIMATE IS ABOUT 1.7 MILLION OF BOND PROCEEDS, 1.8 MILLION THAT WE CAN GENERATE ALONG WITH, UH, CONSTRUCTION FUND EARNINGS ON THERE. WE ESTIMATE CURRENTLY AT A CONSERVATIVE PERCENT OF ABOUT 3% OF ABOUT 44 MILLION. SO, SO THEN WHEN YOU GO TO THE NEXT PAGE, PAGE 20, UH, THIS IS THE, THE, THE INFAMOUS RICH LOAN, UH, UH, CREDIT LINE THAT WE, WE BROUGHT TO YOU, UH, UH, SOMETIME BACK. AND, UH, AS OF TODAY, UH, WE HAVE ENCUMBERED, UH, OR SPENT, UH, SHY OF THE BILLION DOLLARS. THIS, THIS LOAN ITSELF WILL BE TAKEN OUT BY THE FIXED RATE FINANCING THAT STEVE JUST MENTIONED, ABOUT 1,000,000,008. SO THIS WILL BE PAID OFF WHEN THE FIXED RATE FINANCING COMES INTO PLAY. UM, AND I, I WILL INTRODUCE MY COLLEAGUE HERE TO SHARE WITH YOU WHAT HAS BEEN IN ENCUMBERED AND SPENT, UH, FOR THAT BRIDGE LINE, UH, UH, THAT, THAT, UM, BRIDGE LINE. THANK YOU. UH, GOOD AFTERNOON. DEWEY NEWTON, CO-PRINCIPAL IN CHARGE WITH ATTORNEY ALLIANCE, UH, IMPLEMENTING THE CONSTRUCTION CMAR WORK. UM, AS YOU CAN SEE IN THE GRAPHIC THERE, THERE'S ABOUT A ROUGHLY, UH, A BILLION DOLLARS IN BETWEEN GMP ONE AND TWO, WHICH IS COVERED BY THE, THE BRIDGE LOAN THAT WAS JUST MENTIONED. THE MAJORITY OF THIS SO FAR, UH, IS BEING CONTRACTED TO SUBCONTRACTORS IN THE MARKET AFTER COMPETITIVE BIDDING HAS TAKEN PLACE. AND THEN THE, THE, THE FAR COLUMN ON THE RIGHT IS THE AMOUNT ACTUALLY EXPENDED AND BILLED TO THE CITY TO DATE. SO THERE'S, OF THE 945 MILLION IN THE TWO GUARANTEED MAXIMUM PRICES, 755 MILLION IS COMPLETELY ENCUMBERED AND CONTRACTED. AND ABOUT 133 OF THAT IS, IS SPENT AND WORK IN PLACE. AND THAT'S MAINLY THE PRE ENABLING WORK AND THE COE YARD THAT ROSA MENTIONED. AND ANGELA MENTIONED THE DEMOLITION THAT'S CURRENTLY UNDERWAY. UH, THE DECOMMISSIONING AND, UH, MAKING SAFE THE BUILDING SO THAT A, B AND C CAN BE FULLY OPERATING, UH, WITHOUT RELYING ON BUILDINGS DE AND E AND THE, THE RENOVATIONS REQUIRED TO THE, TO USE THE REUNION GARAGE. SO THOSE ARE THE PHYSICAL, UH, CASH PAYMENTS THAT HAVE MADE OF THE 755 AMOUNT ENCUMBERED TO DATE. THANK YOU. SO, SO NOT INCLUDED IN THIS, UH, LIST IS, UH, THE TAKEOUT OF THE NOTES THAT WERE ISSUED BACK IN 2022. IT WAS ABOUT 170 MILLION. SO WE, YOU SEE THE AMOUNT SPENT, UH, IT'S NOT NECESSARILY JUST 1 33, IT'S 1 33 PLUS ABOUT ONE 70 THEREABOUTS. SO THE LE THE LINE HAS BEEN ACCESSED FOR 300 MILLION, UH, AND NOT JUST TO 1 33. UM, THEN WHEN YOU TURN TO THE NEXT PAGE, PAGE, UH, 21, THAT IS, UH, YOU'RE GONNA SEE, UH, THE COMMITMENT, UH, UH, BARS AND THE DRAW BARS. WHAT WE DON'T INCLUDE IN HERE IS, IS TIMING THE FUNDING FOR THOSE COMMITMENTS. UH, THIS PROJECT, AS YOU KNOW, IS PRETTY CUMBERSOME, AND TIMING IS JUST AS IMPORTANT AS MAKING SURE THAT THE PROJECT COMES WITHIN BUDGET. UM, AND, UH, WHAT HILLTOP AND OUR FIRM, UH, HAVE HAS, HAS TRIED VERY HARD TO DO IS TAKE INTO ACCOUNT WHEN WE CAN GO OUT TO THE MARKET, WHAT KIND OF INTEREST EARNINGS WE CAN RECOUP WHILE, UH, BONDS ARE ISSUED, WHILE CASH IS ACCUMULATED, SO THAT HOPEFULLY BY THE TIME WE'RE DONE, UH, WITH THEM GOING OUT FOR BIDS, WE, WE COULD BE RIGHT AT PAR. ONE THING THAT IS NOT INCLUDED HERE, THIS IS FOR GMP ONE, TWO, AND THREE, UH, IT DOESN'T TALK ABOUT GMP GMP FOUR. THAT'S LIKELY TO COME SOMETIME IN, IN, IN LATE 20, UH, LATE 27, UH, WITH FUND, UH, WITH COMMENCING THE IMPROVEMENTS ON, UH, IN 2028. THANK YOU, NOE. THANK YOU, GIL. YES, MA'AM. UM, THE NEXT PAGE ON 22 IS A GRAPHICAL REPRESENTATION OF EVERYTHING THAT WE JUST SPOKE ABOUT ON THE TIMELINE FRAME. AND SO THIS SHOWS YOU WHERE WE ESTABLISHED THE PFC WHERE WE DID BRIMER, AND THEN AS WE TOOK OUT IN ADVANCE TO THE BRIDGES LOAN NOTES AND THE ACTIVITIES THAT TOOK PLACE IN 2026, INCLUDING THE APPLICATION FOR THE S LOAN, AN EXTENSION TO THE BRIDGE LOAN, [00:20:01] UM, AS WE WORK THROUGH AND CONTINUE TO WORK THROUGH WITH THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS. AND AS WE'RE WORKING TOWARDS, UH, APPROVAL OF GMP THREE, WHICH AS I MENTIONED, WILL BRING TO YOU IN EARLY 2027. NEXT SLIDE. THIS NEXT PAGE IS ALSO, IT'S A CHART THAT WE'VE LEFT IN ON THREE DIFFERENT PRESENTATIONS BECAUSE IT PROVIDES YOU A ONE PAGE OVERVIEW OF HOW THIS PROJECT HAS FUNCTIONED AND, UM, WILL FUNCTION WITH YOUR POLICY LEADS AND RECOMMENDATIONS AS WE MOVE FORWARD. SO IN THE FIRST PHASES OF THE PROJECT FROM 2018 TO 2023, WE BORROWED NO MONEY UNTIL THE END OF 2023. WE USED OUR OPERATING RESERVES AT THE CONVENTION CENTER TO FUND THE PROJECT TO THAT DATE. THAT INCLUDED THE MASTER PLANNING AND THEN THE EARLY PORTIONS OF SOFT COST. UM, IN THE NEXT, IN 2023, THAT'S WHEN WE BORROWED THE $170 MILLION. THAT NOE, UH, MISS RENO ALSO JUST REFERRED TO AS WHAT WE TOOK OUT WHEN WE TOOK OUT THE $1 BILLION NOTE. AND THEN YOU'LL SEE THE $1 BILLION BRIDGE LOAN THERE ON THE LAST OF THE TOP. WHAT WE'RE WORKING TOWARDS NOW IS REVENUE BONDING FOR THE NEXT PHASE OF THE PROJECT. AND AS A REMINDER, JUST FOR THE RECORD, THESE ARE REVENUE SOURCES, SO REVENUE BONDS VERSUS GENERAL OPERATING. NEXT SLIDE. I AM GONNA REVISIT A LITTLE BIT ON THE PROJECT FINANCING ZONE. I THINK YOU ALL ARE WELL VERSED IN IN WHAT IT IS. IT'S THE THREE MILE RADIUS, UH, AROUND THE CONVENTION CENTER WHERE WE PICK UP HOTELS. IT'S IMPORTANT TO KNOW THAT THAT IS GROWING. THE CURRENT, UH, HOTEL ASSOCIATION OF NORTH TEXAS INFORMATION INDICATES THAT ABOUT 39 HOTELS ARE CURRENTLY UNDER DEVELOPMENT, MOST OF WHICH MINUS ONE WILL COME INTO PLAY IN 2027 TO 20 30, 21 OF THOSE HOTELS FALL WITHIN THE PROJECT FINANCING ZONE. AND SO YOU'LL SEE A GROWTH IN THAT. OBVIOUSLY, WE'LL BRING THAT TO YOU AS THAT OCCURS. THE NEXT SLIDE ON 25 IS A PROJECTION OF THE CONVENTION AND EVENT SERVICES REVENUE SOURCES TO 2030. AS YOU SEE, THERE'S A PROGRESSIVE, UH, GROWTH AS WE CONTINUE IN THE 2030 IS A, IS A PLAN NUMBER. WE'LL UPDATE THAT OBVIOUSLY AS WE GO THROUGH. NEXT SLIDE IS 26, AND I'LL TURN THAT OVER, UH, TO STEVE TO TALK THROUGH IT. THANKS, ROSA. UM, SLIDE 26 SHOWS WHAT THE PERFORMANCE DEBT SERVICE IS EXPECTED TO BE. UH, YOU KNOW, PULLING IN THE TOTAL 3 51 PLEDGED HOT. OF COURSE, THERE'S STILL THE, UH, 2021 BONDS THAT ARE OUTSTANDING THAT NEED, UH, TO USE A PORTION OF THAT. UH, WE'VE LOOKED AT REFINANCING OPPORTUNITIES FOR THAT BOND ISSUE. CURRENT INTEREST RATE MARKETS DON'T REALLY ALLOW FOR ANY POTENTIAL SAVINGS ON THAT, SO IT'S MORE EFFECTIVE TO LEAVE THOSE BONDS OUTSTANDING AS IS RIGHT NOW. UH, STRUCTURING AROUND THAT, YOU KNOW, IT'LL SUPPLY AT LEAST INITIALLY SOMEWHERE IN THE NEIGHBORHOOD OF ABOUT 39 TO $40 MILLION WORTH OF SURPLUS CHAPTER 3 51 HUT. THERE'S ALSO THE 3 34 BRIER HUT, WHICH THE CONVENTION CENTER GETS 80% FAIR PARK GETS THE OTHER 20, AND THEN THE PLEDGED PFC, UM, ALONG WITH THAT. SO REALLY THERE'S OVER A HUNDRED MILLION DOLLARS PER YEAR AVAILABLE FOR ANNUAL DEBT SERVICE ON THE PROJECT. AND RIGHT NOW WE'RE LOOKING AT THE POTENTIAL OF, UH, STRUCTURING WITH THREE DIFFERENT LIENS, UH, TO TRY TO MAXIMIZE THE PROCEEDS. DEPENDING UPON, UH, WHERE BUYERS ARE, COULD WE END UP AT TWO POSSIBLY. UM, AND WE'LL CONTINUE TO, TO MONITOR THIS AS, UH, INTEREST RATES CHANGE AND AS YOU KNOW, FUNDING NEEDS GO FORWARD. ALL RIGHT, THANK YOU. THE NEXT SLIDE ON 27 ARE THE CASH BALANCES. I BELIEVE THAT WAS A QUESTION THE LAST TIME WE CAME TO COMMITTEE. AND SO WE PROVIDED HERE THE CONVENTION CENTER CONSTRUCTION BUN, UH, FUND, AND WHAT HAS BEEN SPENT TO DATE, WHERE IT STARTED. AND THAT, AS A REMINDER, HAS A TRANCHE THAT GOES INTO IT EVERY YEAR. AS WE CLOSE OUT THE YEAR, WHATEVER IS THE EXCESS OF OUR OPERATING FUNDS AND OUR CONSTRUCTION FUNDS GOES INTO THAT SO THAT WE, THAT FUND WILL CONTINUE TO GROW. UM, WE HAVE THE REVENUE BONDS, WHICH HAS NOW BECOME CASH. AS YOU KNOW, WE PAID OFF THE ONE THAT'S ENTITLED FUND 2127, THAT WAS 170 MILLION. SO SINCE WE RETIRED THAT DEBT, THERE'S AN AVAILABLE BALANCE. SOME OF THAT, UM, IS AND WILL BE ENCUMBERED, BUT WE'LL TRACK THAT TO THE BOTTOM AS WE GO. UM, THEN THE PROJECT FINANCING ZONE, YOU'LL SEE THAT WE'VE COLLECTED TO DATE $219 MILLION. [00:25:01] AND WITH BRIMER, OUR 80% OF WHAT'S BEEN COLLECTED IS AT 73 MILLION. AND SO OUR TOTAL, UM, THAT WE HAVE IN THE AVAILABLE CASH IS 468 MILLION CONTINUE. AND SO I'M GONNA ASK, UH, GARY SANCHEZ AND MICHAEL RODOWSKI FROM VISIT DALLAS TO BRIEF THE NEXT SLIDE AND TO PROVIDE SOME INFORMATION ON THE CONTINUED OPERATIONS OF HALLS A, B, AND C, WHICH WILL CONTRIBUTE TO OUR HOT BRIER AND PROJECT FINANCING ZONE. THANK YOU, ROSA. UM, GOOD AFTERNOON EVERYONE. CHAIRMAN WEST MEMBERS OF THE FINANCE COMMITTEE. GARY SANCHEZ, SENIOR DIRECTOR OF IMPACT AND PUBLIC AFFAIRS AT VISIT DALLAS, AND I'M JOINED BY MY COLLEAGUE MICHAEL RODOWSKI. HE IS THE VICE PRESIDENT OF RESEARCH AND INSIGHTS. UM, AND SO THE FIGURES YOU SEE BEFORE YOU HEAR ARE EXTREMELY EXCITING TO US AT VISIT DALLAS. THIS IS WHERE WE ARE THUS FAR, ONCE THE CONVENTION CENTER OPENS ON THE 2030. HOWEVER, TO ADD TO THIS, UM, WITH THE ACCESS TO EXHIBIT HALLS A, B, AND C, UM, WE HAVE AT VISIT DALLAS, BOOKED THROUGH 20 29, 24 BOOKINGS, WHICH REPRESENT, UH, 106,000 103 CONTRACTED ROOMS, 120, 123 MILLION DIRECT SPENDING, AND $195 MILLION IN TOTAL ECONOMIC IMPACT. UM, BUT THE STORY DOESN'T END THERE BECAUSE COLLECTIVELY EXHIBIT HALL'S A, B, AND C MAKE ABOUT 300,000 SQUARE FEET. UM, THAT IS ABOUT THE SAME OR MORE THAN SOME OF THE SECOND TIER CITIES SUCH AS BALTIMORE, PITTSBURGH, CLEVELAND, CINCINNATI, UM, EVEN OUR FRIENDS TO THE WEST IN FORT WORTH. UM, THEY HAVE A TOTAL OF ABOUT 252,000 SQUARE FEET, AND WE HAVE 300,000 HERE. SO BECAUSE OF THAT, UM, WE HAVE AN AMAZING SALES STAFF AT VISIT DALLAS, AND THEY'RE CURRENTLY WORKING ON AT LEAST 28 OTHER PIECES OF BUSINESS, WHICH REPRESENT AN ADDITIONAL 175,458 REQUESTED ROOMS. THANK YOU, GARY. AND SO I THINK THE IMPORTANT, THE IMPORTANT PIECE HERE FROM A FINANCE PERSPECTIVE IS INITIALLY WE THOUGHT WE WOULD BE CLOSING HALLS A, B, AND C IN 27. WE'RE NOW ABLE TO KEEP THEM OPEN THROUGH 2029, WHICH GIVES US AN ADDITIONAL FLUSH FOR REVENUE VISIT. DALLAS IS WORKING VERY HARD TO MAKE SURE THAT WE HAVE A FULL COMPLIMENT OF EVENTS, EVEN PULLING SOME BACK THAT WE WERE GOING TO SEND TO, TO PARTNER CITIES. AND SO, AS HE SAID, THE EQUIVALENT OF WHAT WE HAVE, UM, IS A MID-SIZED CONVENTION CENTER THAT CAN OPERATE THROUGH THE PROJECT, AND WE'LL CONTINUE TO UPDATE YOU IF WE CAN KEEP IT OPEN EVEN LONGER. SO THE FULL NUMBER THAT WE HAVE IN THERE IS 300,000 SQUARE FEET OF EXHIBITION HALL, 30 MEETING ROOMS LEFT, AND TWO FUNCTIONAL DIVISIBLE BALLROOM. AND SO WE'LL BE ABLE TO CAPTURE QUITE A BIT OF BUSINESS WITH THAT ON IT. THANK YOU. ON THE NEXT SLIDE ON 30, UH, WE'VE SHOWN THIS BEFORE, AND WE WANNA MAKE SURE THAT EVERYONE, UM, IS STILL AWARE THERE ARE CERTAIN RISKS AND CONSIDERATIONS AND MARKET CONDITIONS THAT OVER WHICH WE HAVE NO CONTROL. AND SO WE'VE DONE A, I BELIEVE, AS A TEAM AND COLLECTIVELY AND WITH YOUR GUIDANCE AS A, AS A COMMITTEE AND A COUNCIL, A VERY GOOD JOB OF WORKING WITH OUR EXTERNAL STAKEHOLDERS, INCLUDING UNION PACIFIC AND FAA, ET CETERA, AND WORKING THROUGH THIRD PARTY AGREEMENTS AND OUR REAL ESTATE EASEMENTS. SOME OF THE THINGS WE CANNOT CONTROL ARE THE FINANCIAL MARKETS, SOME OF THE TARIFF IMPACTS AND THE LABOR CONSTRAINTS, BUT WE'LL CONTINUE TO UPDATE TO THE COMMITTEE IF THOSE THINGS START TO PRESS AND ESCALATE ANYTHING RELATIVE TO THE PROJECT. AND SO I'M GONNA ASK, UM, MR. NEWTON TO CONTINUE ON WITH THE NEXT SLIDE AND BRIEF US ABOUT THE TIMELINE FOR COMPONENT ONE. THIS TIES INTO THE GUARANTEED MAXIMUM PRICES THAT WE TALKED ABOUT BEFORE. THANK YOU, ROSA. EXCUSE ME. AS ANGELA MENTIONED, UM, AND, UH, SHE AND SHOWED SOME PICTURES AND SLIDES AND ALMOST THE VIDEO, UH, WE'LL GET TO THAT LATER. BUT IN 2026, WE DID THE PRE ENABLING WORK THAT WAS TO GET THE BUILDING READY TO BE DEMOLISHED AND DECOMMISSIONED AND, AND SAVED. AND IT ALSO DID THE PREPARATION TO DIVIDE HALL'S A, B, AND C FROM DE AND F, WHICH WAS A CRITICAL THING TO DO, BECAUSE NOW THE BUILDING IS BEING SOLD AS A STANDALONE CONVENTION CENTER, A, B, AND C. IT HAS ON A LOADING DOCK IN AND OUT. SO THERE'S, BETWEEN THE EAST AND WEST OF LAMAR, THERE'S NO, THERE'S NO CROSS DISRUPTION BETWEEN THE CONVENTION CENTER OPERATIONS AND THE CONVENTION CENTER CONSTRUCTIONS. AND THAT WAS DONE ON PURPOSE. AND THAT WAS ALL DONE IN 2026. IN 2027. UM, THE PEER DRILLING WILL BEGIN LATE THIS YEAR, UTILITY RELOCATIONS. UM, WE'VE ORDERED STRUCTURAL STEEL FOR THE CRITICAL PATH WORK, [00:30:01] AND WE WILL, UH, START FOUNDATIONS. UM, I SHOULD ALSO MENTION AT THE END OF 2026, THE FAA ANTENNA WAS RELOCATED, AND THE VERTI PORT IS GONNA BEGIN DEMOLITION. UH, IN NOVEMBER OF THIS YEAR, 2028, WE'LL BEGIN THE MAIN STRUCTURAL STEEL WORK, WHICH IS IN FABRICATION AS WE SPEAK, FOUNDATIONS AND CIVIL WORK WILL CONTINUE. AND THEN THE ROUGHING OF THE MECHANICAL, ELECTRICAL, AND PLUMBING WORK, BASICALLY THE GUTS OF THE BUILDING THAT MAKE THESE BUILDINGS FUNCTION. 2029 IS, IS THE CONTINUATION OF ALL THAT, UH, ALL HANDS ON DECK YEAR IS WHAT I CALL IT. ALL THE FINISHES WILL START, THE COMMISSIONING WILL START TO BEGIN. YOU'LL SEE THE CURTAIN WALL AND THE ENVELOPE AND THE ROOFING TAKE PLACE, AND THEN THE CONTINUATION INTO THE COMPLETION YEAR OF 2030 WITH THE THINGS THAT YOU FINISHES, YOU CAN TOUCH, FEEL, AND SEE, AND SYSTEMS BEGIN TO WORK IN AIR CONDITIONING AND HEATING AND COMMISSIONING AND TURNOVER, UH, AND INSPECTIONS BY THE AUTHORITIES HAVING JURISDICTION. SO THAT IS A QUICK LOOK AHEAD OF THE PAST AND, AND WHERE WE'RE HEADED IN THE FUTURE. THANKS, ROSA. THANK YOU. AND ON THE NEXT SLIDE, I'LL ASK IF NOE AND STEVE COULD TALK THROUGH THE UPCOMING, UH, FINANCIAL TRANSACTIONS THAT'LL TAKE PLACE RELATIVE TO THE PROJECT. THANKS, ROSA. UM, ONE OF THE THINGS RICK, WE MENTIONED IS, YOU KNOW, AN EXTENSION OF THE EXISTING BRIDGE LOAN TO ALLOW MORE TIME TO, YOU KNOW, SECURE SOME OF THESE GMPS AND AND COSTS. UH, ADDITIONALLY TO, UH, WE'RE CONTINUING TO WORK ON A POTENTIAL ENERGY EFFICIENCY CONTRACT, WHICH WOULD ALLOW FOR, UH, POTENTIAL PRIVATE FUNDING OF THE, THE ENERGY PLANT PORTION OF THE FACILITY, AND TRY TO ACCOMPLISH THAT AS SOON AS POSSIBLE. UH, ALONG WITH THE 2026 HERE IN THE FOURTH QUARTER, I MENTIONED ALREADY FINALIZING THE HVS STUDY, WHICH WE'LL USE TO GO TO THE MARKET WITH FOR, UH, WHEN WE ISSUE BONDS AND ALSO RECEIVE PRICING ON THE PROJECT TO TRY TO FINALIZE THAT AND, UH, SECURE THE COSTS, UH, OR FIRM UP THE COST OF THE PROJECT A BIT MORE. AND THEN IN 2027, IN THE FIRST PART OF THE YEAR, WE'LL LOOK AT COMING BACK WITH A, AN ADDITIONAL BRIDGE LOAN, UH, TO SECURE SOME OF THE ADDITIONAL FUNDING, UM, TO TRY TO BRING SOME OF THOSE FUNDING FORWARD, SUCH AS THE, THE COG MONIES AND THINGS LIKE THAT, ALONG WITH, UH, AWARDING ADDITIONAL GMP CONTRACTS AND SECURE THE, UM, UH, COG GRANTS ALONG WITH THE CITY, CONTINUE TO WORK ON SOME SALE OF ASSETS. AND THEN SOMETIME TOWARDS THE LATE QUARTER, UH, END OF THE FIRST QUARTER, EARLY SECOND QUARTER, WE WOULD, UH, SELL THE REVENUE BONDS. THANK YOU, STEVE. SO OUR NEXT STEPS WILL BE TO EXTEND THE MATURITY DATE OF THE SPECIAL TAX NOTE. SO THAT'S THE $1 BILLION. JP MORGAN CHASE LOAN WILL COORDINATE, AS STEVE SAID, WITH HBS TO FINALIZE THE STUDY THAT WILL GIVE US A FORECAST ABOUT HOW WE'RE GOING TO PERFORM INTO THE FUTURE. WE'LL CLOSE THE STATE INFRASTRUCTURE BANK LOAN, WHICH WILL THEN COME TO COUNCIL FOR APPROVAL, UM, AND PREPARE FOR THE ISSUANCE OF LONG-TERM BONDS TO FUND THE REMAINDER OF THE CONSTRUCTION COSTS. SO WITH THAT, WE ARE OPEN FOR QUESTIONS. THANK YOU VERY MUCH FOR THE DETAILED PRESENTATION FOR EVERYBODY, FOR BEING HERE TODAY. I'LL START TO MY LEFT WITH VICE CHAIR STEWART. THANK YOU, CHAIR WEST. UM, FIRST ROSA COMPLIMENTS TO YOU AND, UM, WE'RE SO GRATEFUL FOR ALL THE WORK THAT YOU DO ON THIS. YOU HAVE AN AMAZING TEAM. UM, AND WE APPRECIATE ALL OF THE WORK THAT EACH AND EVERY ONE OF THOSE, UH, MEMBERS ARE DOING. UM, THIS WAS QUITE A LOT OF INFORMATION TO ABSORB. UM, IT, IT WAS THE LAST TIME I LOOKED AT IT, AND IT STILL IS, IT PROBABLY ALWAYS WILL BE, RIGHT? IT'S A VERY COMPLICATED, UM, UH, DEAL. SO I GUESS MY, AS I THOUGHT ABOUT IT AND WAS TRYING TO FIGURE OUT WHAT IS THIS BOILED DOWN TO FOR ME, IS, HAS ANYTHING CHANGED FROM OUR LAST BRIEFING? ANYTHING THAT WE SHOULD KNOW AND BE FLAGGED? AND THEN WHAT ARE THE VULNERABILITIES OF THIS PLAN? I MEAN, HOW SENSITIVE IS IT TO SOME TYPE OF, UM, DELAY AND, YOU KNOW, WHAT, WHAT ARE THE PLANS AROUND THAT? SURE. THANK YOU FOR THE QUESTION. SO I'M NOT SURE THAT WE'RE SENSITIVE FOR, WE'RE NOT IN A SITUATION OF DELAY, BUT WE ARE, THERE'S MARKET CONDITIONS AND THINGS THAT ARE OCCURRING IN THE MARKET RIGHT NOW THAT IMPACT, AND STEVE CAN TALK MORE TO THAT. AND AS WELL AS NO, ABOUT THE MARKET CONDITIONS RELATED TO THE REVENUE BONDS, THOSE ARE ALWAYS SOMETHING WE LOOK AT AND, UM, NOT NECESSARILY WORRY ABOUT, BUT MAKE SURE THAT WE'RE STAYING ON TOP OF THEM. AND THEN THE, THE MECHANICAL, UH, THE MEP IS SOMETHING THAT'S DRIVING UP IN THE MARKET. WE SEE THAT HAVING AN UPTICK. SO AS WE COME TO THAT, THOSE ARE OBVIOUSLY THINGS THAT WE WOULD TALK TO YOU ABOUT AND SEE IF THEY START TO IMPACT THE [00:35:01] PROJECT OR A PROJECT COST. THOSE ARE THE, THOSE ARE THE MAJOR, THE MAJOR ITEMS. WHAT WE WANTED TO DO TODAY WAS SHOW HOW WE'VE SPENT THE MONEY OR ENCUMBERED THE MONEY FOR GMP ONE AND TWO. THAT WAS A QUESTION THAT WAS ASKED, SO WE WANTED TO MAKE SURE WE ANSWERED THAT AT THE TOP OF THE BRIEFING. AND TO SHOW YOU OUR WORK, BASICALLY WHAT THAT HOMEWORK HAS BEEN AND AT THE MONEY HAS BEEN SPENT. UM, AND TO SHOW YOU WHAT THE NEXT THINGS WOULD BE. SO THAT WOULD BE THE PREPARATION FOR REVENUE BONDING. AND SO ARE THERE ANY, IS THERE ANYTHING THAT HAS CHANGED DRAMATICALLY FROM THE BRIEFING, THE TWO BRIEFINGS WE'VE HAD BEFORE ON THIS? THE FINANCING? SPECIFICALLY? THE FINANCING, SORRY, NOTHING THAT'S CHANGED APPRECIABLY. I THINK WE CAN TALK A LITTLE BIT ABOUT THE, UH, REVENUE BONDING IF YOU NEED TO, BUT I DON'T THINK THAT THERE'S ANYTHING THAT'S CHANGED SUBSTANTIALLY FROM THE LAST TIME. WELL, WE'RE EXTENDING THE LENGTH OF THE BRIDGE LOAN. CORRECT. AND WHAT WAS, YOU MAY HAVE COVERED IT, BUT REMIND ME WHAT, WHAT THAT WAS ABOUT. THE MAIN REASON, EXCUSE ME. UH, THE MAIN REASON FOR EXTENDING THE BRIDGE LOAN IS TO GENERATE, UM, OR, OR ALLOW MORE TIME TO FINALIZE SOME OF THESE COSTS GOING FORWARD. UM, YOU KNOW, WITH THE DEMOLITION AND FIFA AND, UM, ALL THE OTHER, UH, PROJECTS GOING ON, UH, TO TRY TO FIRM UP THE, THE WHOLE FINANCING PACKAGE, UH, WE REALLY NEED TO GET TO THE FIRST QUARTER OF 27 AND GET THE EIGHT UPDATED HVS STUDY TO GET THE MARKET. THE CURRENT MATURITY ON THE JP MORGAN LOAN IS DECEMBER 15TH, SO WE'RE TRYING TO MOVE THAT OUT INTO 2027 AND ALLOW TIME TO, UH, TO GET ALL THESE OTHER ADDITIONAL, UH, PROJECTS DONE. I MAY ADD THAT, UM, IN THOSE NEGOTIATIONS, WE HAD A DILIGENCE CALL WITH JP MORGAN. NONE OF THE CREDIT FACTORS WERE, UH, OF CONCERN TO THEM. IF ANYTHING IS, IS CUSTOMARY TO ENTER INTO A, A LOAN OF THIS TYPE FOR THIS KIND OF A PROJECT, KNOWING THAT A LOT OF PIECES COME AND GO, BUT YOU DO WANT TO HAVE THE NIMBLENESS TO GO BACK TO THAT PROVIDER OF THE LOAN AND SAY, HEY, CAN I EXTEND IT? AND I THINK, UH, STAFF, ALONG WITH THE COLLEAGUES INVOLVED, UH, WERE SUCCESSFUL IN, IN SHARING WITH JP MORGAN THAT THE PROJECT STILL IS STILL THERE. UH, ONE OF THE THINGS I DO SHARE THE SAME THOUGHTS THAT, THAT I KNOW STEVE AND I HAVE TALKED ABOUT, THE, THE VOLATILITY IN THE MARKETS ARE, ARE CONCERN. IN FACT, STEVE AND I JUST TWO WEEKS AGO, WE'RE UP, UH, WITH A MUTUAL CLIENT IN NTTA AND, UH, IT'S NOT AN ISSUE OF JUST INTEREST RATES RISING. IT'S ALSO AN ISSUE OF THE MARKET TONE. UH, SOMETIMES WHEN INVESTORS SEE, UH, A LOT OF VOLATILITY OUT THERE, THEY DON'T WANT TO JUMP IN AND, AND, AND QUOTE YOU A RATE THAT THE NEXT DAY WASN'T HIGH ENOUGH OR LOW ENOUGH FOR THAT MATTER IS MOSTLY HIGH ENOUGH. SO WE KEEPING AN EYE ON THAT. I THINK THE MODEL, THE FINANCING MODEL THAT WE HAVE, AND, AND BECAUSE OF THE VARIOUS SOURCES YOU GOT, UH, WE FEEL RELATIVELY CONFIDENT THAT WE'RE GONNA GET THERE, UH, TO FUND THE PROJECT. UM, I DON'T KNOW STEVE SAID ANYTHING, BUT YEAH, I KNOW THAT THE, LIKE NO MENTIONED, WE WERE TRYING TO PRICE THIS DEAL A COUPLE WEEKS AGO. THE MARKET THIS WEEK HAS A MUCH BETTER TONE, A LITTLE MORE STABLE, BUT WE'RE STILL CONTINUING TO SEE A LOT OF VOLATILITY. THE, THE WEEK THAT WE WERE TRYING TO PRICE THAT TRANSACTION, INTEREST RATES WENT UP ABOUT 20 BASIS POINTS IN TWO DAYS, AT LEAST IN THE MUNICIPAL MARKET. SO, UH, IT WAS A REALLY TOUGH MARKET. AND IF WE WERE GONNA GO TO SALE , WHAT, WHAT WE WOULD TRY TO DO IS LOOK AND SEE WHAT ELSE IS COMING INTO THE MARKET. I KNOW THAT FORT WORTH ACTUALLY DID A FINANCING ON THEIR CONVENTION CENTER THAT WEEK. UH, SO WE KNOW WE'RE, WE'RE CONVENTION CENTER TYPE REVENUE BONDS ARE PRICING. I'M ACTUALLY WORKING ON, UH, CONVENTION CENTER FOR ANOTHER ISSUER RIGHT NOW THAT'S PRICE PRICING THIS WEEK. AND THE, THE SPREADS THERE, UH, THE RATINGS ARE SIMILAR, THE SPREADS ARE SIMILAR. SO WE KNOW AT LEAST RIGHT WHERE THE MARKET IS FOR THESE TYPES OF BONDS AS WELL. I THINK THE BEAUTY OF IT IS THAT WE'RE NOT PRICING THIS ANYTIME SOON. PART OF THE NEGOTIATION OF THE BRIDGE LOAN IS TO HAVE A FIXED RATE FINANCING FIRST QUARTER OF 27. THERE A LOT OF CONCERNS, AND SOME OF YOU ONLY TAKES A LITTLE CLICK ON THIS GOOGLE NEWS AND YOU'LL SEE THAT ALL CONCERNS ABOUT THE MIDTERM ELECTIONS. SO, UH, AROUND THAT TIME THINGS CAN, CAN GET A LITTLE HAIRY, BUT, YOU KNOW, WE'RE LOOKING AT MAYBE A, AN OFFERING SOMETIME THE FIRST QUARTER OF 27, THE LATER PART OF IT. SO WE SHOULD BE FINE BY THEN. THANK YOU CHAIR CHAIRMAN GRACIE. THANK YOU. UM, AND THANK YOU FOR THIS PRESENTATION. UM, OH, THAT'S WHAT I WAS GONNA ASK, UM, ON THE RECYCLING, AND IT MAY ALREADY BE IN THE CONTRACTS AND EVERYTHING, AND AGAIN, AS WE'RE TRYING TO LOOK TO, UH, BRING REVENUE IN ANY WAY WE CAN, DOES THE CITY MAKE MONEY ON THOSE RECYCLED MATERIALS OR IS THAT DIRECTLY THROUGH THE CONTRACTED VENDOR? UM, IT'S, [00:40:01] THE ANSWER IS YES, BUT NO UNDERSTOOD. SO IN THE, WHEN WE BID THE DEMOLITION AND THE RECYCLING PACKAGE SPECIFICALLY FOR DEMO, THE, THE CONTRACTORS INCLUDE WHAT THEY THINK THE RECOVERY FEES WILL BE FOR THE REUSED PRODUCTS IN THEIR BID, SO THAT THE CITY GETS THE CREDIT BY WAY OF A LOWER BID. AND THEN THAT WAY THE CONTRACTOR HAS THE RISK TO GO FIND THE BUYERS FOR THE, FOR THE, UH, RECYCLED MATERIAL. THE CARPET WAS WAY MORE SUCCESSFUL THAN WE THOUGHT. THAT WAS A GOOD ONE. AND WE'RE DOING VERY WELL ON THE CONCRETE, BUT THE BEAUTY OF THAT IS TAKE THE MONEY UP FRONT AND PUT THE RISK BACK ON THE CONTRACT. OKAY. THANK YOU FOR THAT. UM, AND THEN I THINK THE OTHER THINGS WAS THE CONDITION OF THE MARKET. SO I APPRECIATE THAT, THAT CONCERN THERE IN TERMS OF WHAT IT WOULD LOOK LIKE SELLING, YOU KNOW, REVENUE BONDS, UH, GIVEN, UM, WHERE THE CONVENTION CENTER IS AND THE OPTIONS THAT THEY HAVE IN TERMS OF WHAT THEY'RE ABLE TO, TO, TO, I GUESS, LEASE OUT, BUT ALSO GIVEN THE CONDITIONS, THAT'S NOT NECESSARILY A CONCERN RIGHT NOW IN TERMS OF BEING ABLE TO ISSUE THOSE BONDS DOWN THE ROAD. NO, UM, WE NEVER KNOW WHERE MARKETS ARE REALLY GOING TO BE. AND THERE, THERE'S A LOT OF MARKET DISRUPTION RIGHT NOW WITH THE WAR IN IRAQ, OIL PRICES, INFLATION, MIDTERM ELECTIONS. SO THERE'S A LOT OF FACTORS THAT ARE REALLY DRIVING THE VOLATILITY IN THE MARKET. WE WOULD HOPE THAT MAYBE, UM, YOU KNOW, WITH THE RECENT FED MOVEMENT TO RAISE SHORT-TERM INTEREST RATES, PROBABLY GAVE A LITTLE MORE STABILITY. UH, PROBABLY LEADS TO A LITTLE MORE ASSUMPTION ABOUT FUTURE INFLATION. UH, BUT I THINK, YOU KNOW, LIKE I SAID, THE MARKET'S GOT A LITTLE BETTER TONE THIS WEEK, BUT, UH, WE'LL CONTINUE TO MONITOR IT AND WE'LL SEE WHERE WE'RE AT WHEN THE, YOU KNOW, WE GET TO THE END OF THE FIRST QUARTER, EARLY SECOND QUARTER NEXT YEAR. ALRIGHT. THANK YOU MR. CHAIR. THANK YOU. UH, CHAIR WILLIS, GO AHEAD. THANK YOU. SO IT'S GREAT THAT THE HALLS A, B, AND C WILL BE ACTIVE WHEN WE DIDN'T THINK THEY WOULD BE. I'M WONDERING, MR. IRELAND, IF, HAVE WE BEEN ACCOUNTING FOR THIS POTENTIAL REVENUE FROM SALES TAX, ET CETERA, BECAUSE I DIDN'T REALIZE WE WERE GONNA HAVE, UM, THE BENEFIT OF HAVING THIS FOR AN EXTENDED PERIOD. UM, NO MA'AM. WE'VE NOT MADE ANY ADJUSTMENT TO, UH, OUR SALES TAX FORECAST UP OUR DOWN RELATED TO THAT. UM, ROSA AS, UH, SHE HAS ADDITIONAL, UH, OPERATING EXPENSES FROM KEEPING THE CENTER OPEN LONGER WILL HAVE OFFSETTING REVENUE THOUGH FROM, FROM THE, THE BUSINESS THAT IT GENERATES. OKAY. AND THEN I, YOU KNOW, THANK YOU FOR QUANTIFYING AND HELPING US UNDERSTAND THAT REALLY WHAT WE HAVE OVER THERE OPEN NOW IS EQUIVALENT TO SECOND TIER, LIKE FORT WORTH OR, UM, OTHERS MIGHT HAVE. SO WHAT SIZE DOES THIS GENERATE? I'M JUST TRYING TO GET A SENSE BECAUSE, YOU KNOW, WE, WE FEEL IT, WE FEEL THAT THE, THE WHOLE IS OFFLINE. AND I'M JUST WONDERING WHAT WE CAN HOPE FOR, GIVEN THAT WE'RE GONNA HAVE A COUPLE OF ADDITIONAL YEARS HERE. I MEAN, HOW MANY ATTENDEES, WHAT, WHAT, WHAT ARE SOME EXAMPLES OF WHAT WE WOULD SEE? SURE. WE'LL BE ABLE TO ACCOMMODATE CHEER AND VOLLEYBALL AGAIN. AND SO WE'RE WORKING RIGHT NOW WITH VISIT DALLAS TO GET A CUMULATIVE LIST OF WHAT THEY BROUGHT BACK AND WHAT WILL, WHAT THEY'RE GOING AFTER. SO AS YOU SAW LIKE THE SIMILAR TO THE, TO THE GRAPHIC ON OUR FUTURE, WE'LL PROVIDE ONE THAT SHOWS YOU WHERE WE'RE GOING WITH THE, WITH THE, THE SMALLER FOOTPRINT. AND THEN WE'LL PROVIDE THAT TO JACK AND HIS TEAM TO BE ABLE TO, TO LOOK AT AND FORECAST AND WE'LL FORECAST HOT, BUT WE JUST NEED A LITTLE BIT MORE TIME. THIS WAS A DECISION THAT CAME, UM, JUST RECENTLY, WITHIN THE LAST THREE WEEKS. AND SO WE'RE ABLE TO GO BACK AND, AND GRAB BACK SOME CLIENTS. SO WE'LL, WE'LL FORECAST THAT FOR YOU AND BRING THAT BACK. OKAY. WELL IT'S A SURPRISE, I MEAN A GOOD SURPRISE IN A WAY. YES. IT'S, UM, AND MR. RODOWSKI, THANK YOU SO MUCH. WHEN WE GET AMAZING DATA ON, ON VISITORS AND WE KNOW IN A GRANULAR WAY WHAT THEY'RE DOING AND WHERE THEY'RE GOING, THAT'S YOU, YOU REALLY LET US KNOW ABOUT THAT. SO I JUST WANTED EVERYONE TO UNDERSTAND, UM, I'M LOOKING AT PAGE 19 AND WE HEAR FREQUENTLY, WELL, WE DON'T HAVE A BUDGET OR WHATEVER, WHICH IS RIDICULOUS. WE DO HAVE OUR NUMBERS AND A SENSE OF WHERE THESE ARE GOING TO BE SPENT. SO, UM, I'M JUST WONDERING, WE'RE AT THE 1.1 BILLION ON COSTS THAT HAVE BEEN APPROVED. DO WE HAVE, IT'S NOT IN THIS DECK, I DON'T BELIEVE, BUT DO WE HAVE SOMETHING THAT KIND OF OUTLINES SO WE CAN LOOK AT THAT OR SHARE WITH THE PUBLIC OF WHAT WE HAVE EXPECTED THIS TO COST? HERE'S WHERE YOU'RE GOING TO SEE THESE EVEN IN A GENERAL LINE ITEM. SINCE WE CAN CREATE THAT AND GENERATE THAT AND PROVIDE IT TO YOU, I THINK THAT WOULD HELP FILL A KNOWLEDGE GAP THAT WE ARE EXPERIENCING. SO, OKAY. MAY NOT BE APPROVED YET, BUT IT'S WHERE WE'RE GOING. I MEAN, YOUR TIMELINE STARTS [00:45:01] TO GET AT SOME OF THOSE CATEGORIES, BUT WE DON'T REALLY HAVE IT IN A NICE CHART. OKAY. THANK YOU. THANK YOU. AND I'LL GO AND THEN I'LL, I'LL LET THE NON COMMITTEE MEMBERS ASK IF THEY HAVE QUESTIONS. UM, I AGREE WITH THAT LAST COMMENT. I DIDN'T WANNA MISS IT. IT'S 'CAUSE IT'S NOT IN MY NOTES, BUT I THINK AN OVERALL BUDGET WOULD BE VERY HELPFUL. 'CAUSE ALL I'M SEEING IN THIS DECK IS THE, THE GMP ONE AND TWO, WHICH TOTAL IS 945 MILLION. WE KNOW IT'S GONNA COST MORE THAN THAT. SO, UM, IT'D BE NICE TO SEE THE OVERALL BUDGET LAID OUT. UM, I AGREE ALSO THAT IT'S, IT'S GREAT TO HEAR SOME OF THE, UH, EXHIBITION SPACE WILL BE AVAILABLE. I LIKE, I LIKE SEEING THAT, UH, PAGE THREE OF THE DECK, UM, SAYS THE CONSTRUCTION DOCUMENTS ARE AT 50% AND WILL BE AT A HUNDRED PERCENT BY I THINK DECEMBER, 2026. IS THAT STILL REAL REALISTIC GIVEN THE DESIGN CHANGES THAT HAPPENED IN JUNE OF, OF 2026? YES, THEY ARE. IT'S OKAY. UM, UH, LET'S SEE, I'M GONNA COME BACK ON THAT. UM, ALRIGHT, I KNOW WE'VE HAD SOME RECENT TRANSPORTATION AND ROADWAY CHANGES. UM, HOW IS THAT GONNA IMPACT THE ULTIMATE PROJECT PRICING IF THERE'S A THOROUGHFARE CHANGE AMENDMENT THAT'S COMING? I'LL HAVE TO ASK FOR GUS AND CARLY TO COME DOWN, PLEASE. WELL, IT DOES INVOLVE PRICING, SO I WOULD HOPE WE COULD HAVE SOMEONE FROM THE TEAM ALSO HELP WITH THIS. GOOD AFTERNOON, GUS CARI, DIRECTOR OF THE DEPARTMENT OF TRANSPORTATION PUBLIC WORKS. SO WE'RE WORKING CLOSELY WITH THE CONVENTION CENTER AND, UH, AS ROSA INDICATED WITH THE, UH, NORTH CENTRAL COUNCIL OF GOVERNMENTS ON POTENTIAL, UH, COLLABORATION ON THE FUNDING ON SOME OF THE, UM, REVISIONS, IF YOU WILL, UH, THAT WE'RE HAVING ON THE TRANSPORTATION COMPONENT OF IT. OKAY. UM, WHAT ABOUT THE, THE FINANCING PART OF THIS THOUGH? HOW, HOW, HOW ARE WE COMMUNICATING THE CHANGES INTO OUR BUDGET? SO SOME OF THE CHANGES THAT WERE DISCUSSED IN AND ANTICIPATED AS WE GO INTO, WE'VE NOT YET FINISHED THE ENGAGEMENT, RIGHT, SO WE'LL GO INTO THAT. BUT THE ROUGH ORDER OF MAGNITUDE, UH, THAT WE'VE DEVELOPED AS A, AS A ROUGH BUDGET, SOME OF THAT WAS SUBMITTED AS PART OF THE STATE INFRASTRUCTURE BANK LOAN THAT WILL COME BACK TO YOU FOR APPROVAL ONCE WE HAVE THE FINAL DOCUMENTS. SO WE WERE ABLE TO WORK SUCCESSFULLY WITH THEM TO PUT SOME OF THAT COST INTO THAT APPLICATION AND MAKE AN AMENDMENT TO IT. THE REST OF IT, OVER THE LAST WEEK OR TWO AS AFTER WE'VE MET WITH COUNCIL PEOPLE, WE HAVE STARTED TO PUT THE MATRIX TOGETHER TO BEGIN TO WORK WITH THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS TO PROVIDE YOU A BROAD OVERVIEW OF WHERE THOSE FUNDS ARE GOING TO COME FROM. OKAY. THANK YOU. UM, SO I SEE THAT THERE'S 275 MILLION IN NAMING RIGHTS. UM, AS PART OF THE SOURCES FOR THE FUNDS OF THIS PROJECT, WHAT ARE, UM, SOME EXAMPLES OF, UH, NAMING RIGHTS OPPORTUNITIES THAT WE SHOULD EXPECT TO HEAR ABOUT? SURE. AND SO WE'LL BRING A BRIEFING BACK TO COUNCIL TO TALK ABOUT A POLICY RECOMMENDATION, BUT WHAT WE BROADLY LOOKED AT IS, IS NAMING THE ACTUAL DISTRICT NAMING OF COMPONENTS OF THE CONVENTION CENTER, INTERIORLY, ET CETERA. AND SO WE'VE WORKED WITH, UM, INSPIRE DIALYSIS CONSULTANT, WHICH WAS PART OF THEIR TEAM WHEN THEY SUBMITTED THEIR PROPOSAL TO HELP US PUT TOGETHER KIND OF A, UH, ROUGH ORDER OF MAGNITUDE OF HOW WE COULD GO IN AND NAME PARTS OF IT, NAME THE DECK, UH, OR THE GREEN SPACE ACROSS 30, ET CETERA. SO ALL OF THOSE THINGS ARE GOING TO BE, UH, BROUGHT TO COUNCIL WITH AN IDEA OF WHAT WE WOULD LIKE TO DO AND HOW WE WOULD LIKE TO MARKET THAT. AND THEN A POLICY RECOMMENDATION WOULD BE REQUESTED ON, ON GOING FORWARD TO SELL THOSE ASSETS. THAT IS A A, THAT'S BASED ON A STUDY THAT WE'VE DONE TO DATE. WE'LL NEED TO REFRESH IT. THAT STUDY IS ABOUT, UH, SIX OR SEVEN MONTHS OLD, SO WE'LL NEED TO GO BACK AND REFRESH THAT. WHEN CAN WE EXPECT TO, UH, TO HAVE THAT BRIEFING? SO IDEALLY WE'D LIKE TO DO THAT IN 2027. OKAY. AND BRING THAT BACK TO YOU. LAST QUESTION FROM ME. UH, MEMORIAL AUDITORIUM, HOW DOES THAT FACTOR INTO THE PLANS AND WHERE ARE WE AT WITH THAT? SO MEMORIAL AUDITORIUM IS CURRENTLY ABOUT TO GO UNDERGO ABATEMENT. UM, AND WE CAN BRING THAT BACK TO YOU WITH KIND OF A SCHEDULE OF WHAT WE'RE GONNA DO. THE FIRST THING WE HAVE TO DO IS, IS ABATE THE INSIDE OF THE INTERIOR BECAUSE IT'S AN OLDER BUILDING. SO THAT'S WHERE WE ARE RIGHT NOW. DOES THIS BUDGET [00:50:01] PRESENTED TODAY INCORPORATE THE WORK THAT'S BEING DONE WITH MEMORIAL AUDITORIUM? THE WORK FOR MEMORIAL AUDITORIUM IS OUT OF PART OF MY CONSTRUCTION BUDGETED WITH FUNDS THAT WERE ENCUMBERED QUITE SOME TIME AGO. UM, AND SO I'M USING THAT FOR THE ABATEMENT. IT'S PART OF THE LARGER CONTRACT THAT WE HAVE WITH TERRACON AND SOME OTHERS THAT WE'VE BEEN USING THROUGHOUT AND ACROSS THE MASTER PLAN. THANK YOU. UH, COUNCIL MEMBER RIDLEY. THANK YOU MR. CHAIR. AND THANK YOU FOR THE PRESENTATION TEAM, UH, DIRECTING YOUR ATTENTION TO SLIDE 19. UM, THE LAST ITEM ON THE SOURCES IS NAMING RIGHTS 275 MILLION. I'M CURIOUS HOW YOU ARRIVED AT THAT NUMBER. WAS THAT JUST A GAP FILLER TO COME UP WITH A 3,080 MILLION, OR IS THAT BASED UPON ACTUAL EXPECTATIONS FOR WHAT YOU CAN OBTAIN FOR NAMING RIGHTS? SURE. SO WE'LL BRING IT BACK TO YOU IN A, IN A LARGER CONTEXT AS A BRIEFING. BUT WE DID WORK WITH INSPIRE DALLAS'S TEAM TO DO A STUDY ON NAMING RIGHTS FOR THE, FOR THE DISTRICT ITSELF, INCLUDING THE CONVENTION CENTER AND HOW WE COULD DO NAMING RIGHTS, BOTH INTERIORLY EXTERNALLY, THE GREEN SPACE, SOME OF THE, UM, DOCK AREAS, ET CETERA. AND SO THERE IS A STUDY, UM, AS I SAID TO UH, TO THE CHAIR. WE'LL NEED TO UPDATE IT. IT'S ABOUT SIX MONTHS OLD, SO BEFORE WE BRING IT BACK TO COUNCIL IN 2027, WE WILL HAVE THAT UPDATED AND THAT NUMBER WILL UPDATE AT THAT POINT. OKAY. AND THE ASSETS, SALES, WHAT SORT OF ASSETS ARE YOU PROPOSING TO SELL? SO THE CONVENTION CENTER OWNS SEVERAL PARCELS OF, OF PROPERTY, AND SO WE ARE PROPOSING TO SELL THOSE. WE WOULD BRING THAT INFORMATION TO COUNCIL AS WELL, I BELIEVE IN LATE 2027. SO THAT PAUL'S A, B, AND C WHEN THEY'RE DEMOLISHED. WELL, PART OF THE, THIS NUMBER DOES NOT YET INCLUDE THE, THE 30 ACRES. UH, OH. WE, BECAUSE WE'RE TRYING TO SEE HOW LONG WE CAN KEEP THAT OPEN. SO WE DON'T WANNA PUBLISH THAT. WE'LL HAVE TO DO AN AT THE TIME APPRAISAL OF THE PROPERTY TO MAKE SURE WHAT THE, WHAT THE APPRAISAL IS FOR A CLEARED PROPERTY AND A YOU ON A VACANT PROPERTY. SO, UH, WE'LL HAVE TO BRING THAT TO YOU LATER. THIS IS OUR OTHER ASSETS. THE CONVENTION CENTER OWNS SEVERAL OR HAS SEVERAL PROPERTIES UNDER ITS PORTFOLIO. UM, AT ONE POINT, PERHAPS A YEAR OR SO AGO, I UNDERSTOOD THAT THE PFC COLLECTIONS WERE EXCEEDING EXPECTATIONS. HAS THAT CONTINUED TO BE THE CASE AND HOW IS THAT BENEFITING THE OVERALL BUDGET? YES, IT CONTINUES TO BE THE CASE. INITIALLY, WHEN WE BROUGHT THE PFC TO YOU AND ESTABLISHED IT IN, UM, 22, 21, 22, WE ESTIMATED THAT IT WOULD BE ABOUT $15 MILLION A YEAR IN COLLECTIONS. BUT THE HOTELS HAVE DONE FABULOUSLY HERE AND THE COLLECTIONS ARE ACTUALLY, UH, ALMOST TRIPLE ANNUALLY WHAT THEY WERE THE FIRST YEAR IT WAS ABOUT, UH, DOUBLE AND THEN IT CONTINUED TO GROW, UH, OVER THE LAST SEVERAL YEARS. AND SO THAT'S HOW WE'VE GOTTEN TO 219 MILLION IN COLLECTIONS TO DATE. WITH THAT 21 ADDITIONAL HOTELS THAT'LL BE COMING IN, UM, BETWEEN 2027 AND 2030, THAT'LL ONLY GROW. SO AM I UNDERSTANDING CORRECTLY FROM THE PRESENTATION THAT AS EXPENSES ARE INCURRED, THEY WILL BE PAID BY CASH RESOURCES LIKE THE PFC COLLECTIONS BEFORE YOU TURN TO INTEREST BEARING DEBT LIKE THE REVENUE BONDS? YES. UM, AS FOR THE, THE PFCS, MOST OF THAT WILL BE USED TO, OF COURSE, REPAY THE DEBT SERVICE ON THE BONDS. BUT UNTIL THOSE BONDS ARE ISSUED, THEY BECOME CASH THAT YOU CAN USE FOR THE PROJECT AND OTHER COSTS ASSOCIATED WITH IT SO THAT WE CAN TRY TO KEEP THE BONDING COSTS DOWN. AND IS THERE ANY REFERENCE, I DIDN'T SEE IT IN THIS PRESENTATION, TO THE DEBT ON THE EXISTING CONVENTION CENTER AND HOW THAT WILL BE, UH, RETIRED AS I MENTIONED ON SLIDE, UH, 26, UH, COLUMN C THERE SHOWS THAT THE DEBT SERVICE ON THE EXISTING 2021 BONDS, IT'S CURRENTLY ABOUT $19 MILLION A YEAR I'VE MENTIONED. WE'VE ALSO LOOKED AT TRYING TO REFUND THAT FOR POTENTIAL SAVINGS OR RESTRUCTURING. AND GIVEN THE THE CURRENT INTEREST RATES, THERE'S NOT A LOT OF OPPORTUNITIES FOR THAT AT THIS TIME. OKAY. AND AND JUST AS A REMINDER, WE DID REFUND THOSE IN 2021 AND LOWERED OUR PAYMENT BY, I BELIEVE, SIX OR $7 MILLION A YEAR. SO WE'VE DONE IT ONCE BEFORE AND WE JUST WAIT FOR THE OPPORTUNITY TO ENSURE IF WE [00:55:01] CAN DO THAT AGAIN. IN THE INTERIM, IT'S PART OF OUR OPERATING BUDGET AND WE PAY THAT AS PART OF OUR DEBT SERVICE. SO DOES THE DEMOLITION OF THE CONVENTION CENTER REQUIRE ANY KIND OF A BALLOON PAYMENT TO RELEASE THE LIEN ON THAT PROPERTY OR WHAT, WHAT, WHAT'S THE STATUS OF THAT? NOT, NOT THAT I'M AWARE OF THE, THOSE BONDS ARE SECURED BY THE PLEDGE OF THE CHAPTER 3 51 HOT. SO AS LONG AS THAT REVENUE SOURCE, UH, STILL EXISTS, THE PAYMENTS CAN STILL BE MADE ON THOSE BONDS. YEAH. YEAH. IT IS PROBABLY FAIR TO STATE THAT NO ASSET SERVES AS COLLATERAL TO ANY OF THE CURRENT LOANS OUTSTANDING. IT'S ALL REVENUE STREAMS. I SEE. SO THEY GO BY HISTORY. IN FACT, UH, THE PROJECTED PFCS ARE ON PAGE 25 OF THE PRESENTATION PROVIDED. AND I THINK IT'S FAIR TO STATE THAT BY THE TIME WE GET TO THE, THE OFFERING IN THE FIRST QUARTER OF 27, WE'LL HAVE A, UH, AN UPDATED HVS STUDY, WHICH IS A, A, A PARTY THAT SPECIALIZES IN THE FORECASTING. AND I THINK IT'S FAIR TO STATE THAT, UH, THEY'VE BEEN PRETTY MUCH WITHIN THE TWO TO 3% MARGIN OF ERROR ON THEIR PROJECTIONS. SO THAT'S PRETTY ASSURING FOR US. SO DOES THAT MEAN THAT ALL ALL OR VIRTUALLY ALL OF THE REVENUES RECEIVED IN THE INTERIM FROM HALLS A, B AND C WILL BE DEVOTED TO DEBT SERVICE ON THE OLD BUILDING? THAT'S RIGHT. DEBT SERVICE AND, AND OPERATIONS, RIGHT? MM-HMM . AND THEN FINALLY ON SLIDE 32, UH, THE, WHAT IS THE HVS STUDY, STEVE, THAT IS, UH, UH, THERE IS A COMPANY OUT THERE CALLED HVS. THEY SPECIALIZE IN DOING, UH, FORECAST AND FEASIBILITY STUDIES FOR CONVENTION CENTERS, HOTELS. OH, OKAY. SO THAT'S THE, UH, EVENT CENTER, THE FORECAST STUDY THAT YOU MENTIONED? MM-HMM . OKAY. YES. I JUST DIDN'T UNDERSTAND THE ACRONYM. AND THEN FINALLY, UM, AT ONE POINT THERE WAS DISCUSSION ABOUT SIZING THE MECHANICAL SYSTEM TO BE ABLE TO SERVE OTHER BUILDINGS ON THE CAMPUS. IS THAT STILL IN THE PLAN AND THE BUDGET? THAT'S STILL IN THE PLAN. STILL IN THE PLAN. UH, WE'RE DEALING WITH, UH, CITY ATTORNEY'S OFFICE TO FIGURE OUT HOW WE CAN GO ABOUT, UH, UH, SOLICITING FOR THOSE SERVICES. WE HAVE DONE A, UH, A PRELIMINARY R-F-Q-R-F-I, UH, WE RECEIVED, UH, A NUMBER OF INTERESTED PARTIES BOTH GLOBALLY AND DOMESTICALLY THAT ARE IN THAT PARTICULAR SPACE. AND WE'RE VERY HOPEFUL THAT, UH, WHEN WE DETERMINE WHAT BEST APPROACH TO GO OUT AND, AND SOLICIT FOR THOSE SERVICES, WE'RE GONNA HAVE PRETTY RELIABLE FIRMS PROVIDING THAT KIND OF SERVICE. SO DO YOU SEE THAT AS A POTENTIAL REVENUE SOURCE? UH, THAT'S THE, THAT'S OUR HOPE. OKAY. SO INITIALLY TO BE, TO BE CLEAR, INITIALLY IT'S, IT'S COST DEFERRAL. AND THEN AS WE GROW AND SEEK A POLICY RECOMMENDATION FROM YOU ALL TO GROW IT, IT WOULD BE, UH, INCOME COMPANY. RIGHT? WE HAVE TO INVEST SOMETHING TO MAKE SOMETHING. YEAH. YEAH. GOT IT. THANK YOU MR. CHAIR. THANK YOU. UH, COUNCIL MEMBER ADEENA, UH, JUST HAVE SOME BRIEF COMMENTS. I'M REALLY GLAD THAT WHOLE A, B AND C ARE GONNA BE ABLE TO OPEN, REMAIN OPEN. I WENT TO FAN EXPO I GUESS TWO WEEKENDS AGO, AND IT WAS A GREAT EXPERIENCE. I'VE GONE THE PAST FEW YEARS, AND SO YOU COULDN'T REALLY TELL MUCH OF A DIFFERENCE. SO I'M GLAD THAT WE'RE ABLE TO CONTINUE GETTING REVENUE THAT WAY. UM, MY ONLY ONE QUESTION IS I SEE WHERE WE DO HAVE THE ASSET SALES, BUT I DIDN'T SEE A LINE ITEM FOR ANY, UH, PROPERTY OR PARCELS THAT WE ACQUIRED IT. WILL THAT BE INCLUDED IN ANY OF THE FINANCIALS? YES, THAT'LL BE IN THEIR ITEMIZED FINANCIALS. BUT THAT IS ALREADY, UM, I BELIEVE INCLUDED IN THIS. BUT LET ME CHECK, LET ME MAKE SURE, AND THEN I'LL PROVIDE AN UPDATE ON THAT TO YOU. OKAY, GREAT. THANK YOU. COUNCILMAN BLACKMAN. GO FOR IT. THANK YOU. UM, CAN YOU TELL ME HOW MANY GMPS ARE WE EXPECTED TO APPROVE? YES, ABSOLUTELY. THEY SHOULD. THERE SHOULD BE FOUR. OKAY. SO WE HAVE ONE COMING THAT SAYS, UH, LATE THIS YEAR, EARLY NEXT YEAR. AND THEN WHEN WOULD BE THE FINAL ONE? SO THE FINAL ONE WOULD BE, UM, THAT WOULD BE 2022, LAST QUARTER OF 27. LAST QUARTER OF 27. OKAY. AND INTEREST RATES COULD AFFECT THAT? LIKE ALL, I MEAN, 'CAUSE EVERYBODY'S KIND OF WORRIED RIGHT NOW ABOUT HOW THE BOND MARKETS ARE REACTING TO IT. YEAH. BUT AS YOU'VE SAID, IT STABILIZED SOMEWHAT. SO, SO INTEREST RATES ARE GONNA, AND STEVE, I'M SURE YOU CAN JUMP IN ONTO THIS, BUT INTEREST RATES ARE GONNA AFFECT OUR LONG-TERM FIXED RATE FINANCING. RIGHT? UH, THE QUESTIONS HAVE COME UP, HOW DO WE GET NAMING RIGHTS? HOW DO WE GO ABOUT SELLING LAND? SO WE HAVE A LOT OF, A LOT OF TOOLS TO PLAY WITH TO GIVE US CAPACITY AS FAR AS IN CASE INTEREST RATES RISE, WE CAN ALWAYS RECONFIGURE OUR, OUR DEBT MODELS TO, TO TRY TO GET THE MOST USE FOR WHAT WE GOT. UH, INTEREST RATES, IF THEY RISE, HOPEFULLY WILL BENEFIT US ON THE INFLATION. MM-HMM . AND THAT RATES NORMALLY RISE TO TAME INFLATION, TO TAME THE COST OF PRICES. WHEN WE TALKED [01:00:01] ABOUT THE PROJECT, UH, TWO YEARS AGO, UH, UH, THEY WERE, UH, THEY WERE PUTTING CONTINGENCY RATIOS THAT WERE OUT THAT I FELT WERE PRETTY MUCH OUT OF, OUT OF THIS DIMENSION. I THINK, UH, INFLATION, UH, HAS, HOPEFULLY WE TAMED, WE, WE FELT AS MARKET PARTICIPANTS THAT THE FED COULD RAISE MAYBE ANOTHER QUARTER OF A POINT TO, TO REALLY MAKE A, A STATEMENT. BUT OTHER FORCES GOT INTO PLAY. BUT AS RATES RISE, WE'LL GET BETTER PRICES. WE THINK. OF COURSE, YOU KNOW, WE WE'RE NOT THERE. WELL, YOU'VE GOT ENERGY COSTS GOING UP, TRANSPORTATION COSTS, YOU'VE GOT OTHER VARIABLES. MM-HMM. AND I GUESS MY QUESTION AND ALL THAT IS YOU DO HAVE PLANS B AND C FOR ANY OF THOSE THAT, THAT HAPPENS IN ORDER TO GET THE PROJECT DONE, WE MAY HAVE A DNE. OKAY. THAT'S ALL I'M ASKING. IS THAT Y MA'AM? Y'ALL JUST BE PREPARED BECAUSE I THINK, UM, THERE'S A LOT OF VARIABLES THAT YOU DON'T CONTROL OR KNOW AT THIS POINT. AND WE GOTTA, WE'RE GOING INTO PROBABLY SELLING THEM AT PROBABLY A PRECARIOUS TIME. YES, MA'AM. AND SO THAT'S JUST MY QUESTION IS MAKING SURE THAT WE CAN STILL DELIVER ON TIME FOR OUR, OUR CUSTOMERS, OUR TAXPAYERS, AND MAKING SURE THAT WE DON'T BREAK THE BANK. YEAH, AND I THINK ONE THING THAT THE CITY HAS GOING FOR, FOR ITSELF IS THE FACT THAT YOU, IT'S SUCH A HUGE PROJECT THAT YOU KIND OF BECOME THE MARKET MAKER ON CERTAIN THINGS RELATED TO THE CONSTRUCTION AS SCARY. BUT AGAIN, WE'RE NOT HERE YET. WE, YOU KNOW, WE'RE JUST, UH, FACT FINDING, I GUESS. OKAY. THANK YOU. GOOD QUESTION. THANK YOU EVERYONE. ALRIGHT, WE ARE WRAPPING THAT UP BECAUSE WE HAVE A TIGHT AGENDA TODAY, COLLEAGUES. A LITTLE HOUSEKEEPING. WE'RE GONNA GO NEXT TO. THANK YOU. WE'RE GONNA GO NEXT TO ITEM TWO. UM, NO, NOT ITEM TWO. THAT'S MY NOTE. ITEM TWO. UH, ITEM C, UH, THE ANNUAL REVIEW OF THE CITY'S INVESTMENT POLICY AND THIRD QUARTER INVESTMENT REPORT. UM, THIS IS REQUIRED BY TEXAS GOVERNMENT CODE FOR US TO BE BRIEFED ON THIS ONCE A YEAR, WHICH IS WHY WE DO IT. I THINK IT WILL BE PRETTY QUICK. UM, THOSE OF YOU WHO'VE BEEN ON THE COMMITTEE FOR OVER A YEAR, WE HAVE TO DO THIS EVERY YEAR. AND MY UNDERSTANDING IS THERE ARE NO CHANGES. BUT CORRECT ME IF I'M WRONG. THANK YOU. CHAIRMAN WEST. YES, YOU'RE CORRECT. VERY, VERY MINOR, UH, CHANGES THAT WE NEED TO INCLUDE FOR THE INVESTMENT POLICY. SO I COULD GO VERY QUICK IN THIS PRESENTATION. LET'S MAKE IT QUICK AND IF PEOPLE HAVE QUESTIONS, THEY CAN ASK IT. THANK YOU. OKAY, GREAT. ALL RIGHT. SO, UM, YOU'RE VERY FAMILIAR WITH THE BACKGROUND AND THE CITY'S PUBLIC FUNDS INVESTMENT POLICY. WHAT WE ARE RECOMMENDING COMING UP FOR THE NEXT MEETING AND THE QUARTERLY INVESTMENT REPORT. THIS IS A REPORT THAT WE USUALLY PROVIDE TO YOU VIA MEMO, BUT SINCE WE HAVE THIS BRIEFING, WE INCLUDED IT. BUT OF COURSE, THIS IS SOMETHING THAT WE COULD, YOU COULD JUST, UH, REVIEW ON YOUR OWN AND ASK ANY QUESTIONS. UM, SO YES, AND IN THE BACKGROUND NEXT SLIDE PLEASE, IS, UH, CHAPTER 2256 OF THE TEXAS GOVERNMENT CODE, WHICH IS, UH, KNOWN AS THE PUBLIC FUNDS INVESTMENT ACT, THE PFIA. THEY'RE THE ONES THAT REQUIRE THAT WE HAVE A ANNUAL REVIEW OF THE POLICY AND TO MAKE ANY CHANGES IF NEEDED. UH, THE POLICIES MUST ADDRESS THE SAFETY PRINCIPLE OF SAFETY, OF PRINCIPLE, LIQUIDITY, YIELD, DIVERSIFICATION AND MATURITY WITH PRIMARY EMPHASIS OF SAFETY OF PRINCIPLE. WE'VE BEEN DOING THIS SINCE 1997, SO THE CITY COUNCIL APPROVED THIS, UH, EVERY YEAR. UH, THE LAST, THE MOST RECENT WAS ON RESOLUTION 25 DASH 7 56, IF WE GO TO PAID SIX. SO, YOU KNOW, THE TREASURY DIVISION IS THE ONE THAT MANAGES THE INVESTMENT OF THE CITY FUNDS UNDER THE GUIDELINES OF THE POLICY IN ACCORDANCE WITH FEDERAL AND STATE LAW. AND OF COURSE, CITY CHARTER. UH, THE INVESTMENT COMMITTEE MEETS ON A QUARTER BASIS SO WE CAN REVIEW THE PERFORMANCE OF THE PORTFOLIO, MAKING ANY NECESSARY ADJUSTMENTS FOR THE UPCOMING QUARTER THIS LAST YEAR. IF YOU GO TO, UH, NUMBER SEVEN, PLEASE. THIS LAST YEAR WE HAD EXPENDED OUR INVESTMENT COMMITTEE, SO WE ADDED OUR ASSISTANT CITY MANAGER AND THE DIRECTOR OF AVIATION. SO WE HAVE A VERY, UH, ROBUST GROUP OF EXECUTIVES THAT ARE REVIEWING THE PERFORMANCE OF THE PORTFOLIO AND MAKING ANY RECOMMENDATIONS. THE POLICY IS, UM, CERTIFIED BY GOVERNMENT TREASURER'S ORGANIZATION OF TEXAS, GTOT. SO WE HAVE PROVIDED THE POLICY TO THEM FOR REVIEW TO MAKE SURE THAT IT MEETS ALL THE REQUIREMENTS OF THE PFIA AND THEN THE STANDARDS OF PRUDENT PUBLIC INVESTING THAT ESTABLISHED BY GTOT. WE HAVE RECEIVED THIS TWO YEAR CERTIFICATION, UH, LAST, UH, FEBRUARY, 2025. SO IT'S GOOD ON UNTIL 2027. NOW, ON PAGE, UH, NINE, UH, WE HAVE BEEN WORKING WITH AN INVESTMENT ADVISOR [01:05:01] SINCE 2022. THE COUNCIL APPROVED A THREE YEAR, UH, CONSULTANT CONTRACT WITH TWO ONE YEAR RENEWAL. RIGHT NOW, WE ARE ON THE FINAL YEAR OF THAT CONTRACT, AND WE'RE ALREADY WORKING WITH OPS TO MAKE SURE THAT WE DO A FORMAL PROCUREMENT FOR THAT CONTRACT. THEN ON THE SLIDE 10, SO THE ADV INVESTMENT ADVISORY SERVICES THAT IS PROVIDED BY METER ARE NOT, ARE INCLUDES, BUT THEY'RE NOT LIMITED TO THE REVIEW. THE PORTFOLIO PROVIDE US, UH, ECONOMIC UPDATE MARKET RESEARCH, AND OF COURSE ATTEND OUR MEETINGS. SO WE HAVE SOMEONE, WE HAVE THEM THERE TO PROVIDE ANY GUIDANCE. AND HERE IS WHERE IT COMES, WHERE THE POLICY NEEDS TO BE APPROVED EVERY YEAR. SO AS WE REQUIRE, UH, WE HAVE TO REVIEW THE POLICY AND WE'RE ASKING THE, UM, THE COUNCIL TO APPROVE IT DURING THE UPCOMING, UM, POLICY. UM, MEETING SCHEDULED FOR, UH, I BELIEVE IT'S OCTOBER 14TH HERE ON PAGE 12 IS THOSE, THE TWO ITEMS THAT WE ARE REQUESTING TO ADJUST IS THE SECTION 15, JUST THE INVESTMENT COMMITTEE, UH, JUST TO SHOW THAT WE HAVE ADDITIONAL MEMBERS OF THE COMMITTEE. AND THE SECTION 18 IS THE REPORTING, UH, JUST SOME UPDATING THE LANGUAGE. SO THAT IS WHAT WE ARE RECOMMENDING FOR THE COUNCIL TO APPROVE, UH, THE INVESTMENT POLICY FOR THE UPCOMING YEAR. THANK YOU COLLEAGUES ON THE COMMITTEE. MR. RIDLEY? NOPE. ALRIGHT, VERY GOOD. THANK YOU. GREAT, THANK YOU. JACK, DO WE NEED, IS THERE ANY KIND OF MOTION NEEDED? NO, SIR. WE'LL BRING IT ON THE 14TH OF OCTOBER FOR COUNCIL. FANTASTIC. OKAY. UH, TO KEEP, TO CATCH BACK UP ON MY HOUSEKEEPING HERE. UH, WE WILL HOLD ITEMS B AND D TO THE END OF THE MEETING TO SEE IF WE HAVE TIME FOR THEM. WE ARE GONNA SKIP ITEM E 'CAUSE I UNDERSTAND, UM, THAT DR. LAPORE IS DOING INDIVIDUAL MEETINGS WITH EVERYONE. I WOULD JUST ENCOURAGE FOLKS TO PAY SPECIAL ATTENTION FOR THE CITY AUDITOR KPIS, UM, BECAUSE THAT POSITION DOES REPORT TO THIS COMMITTEE. UH, NEXT WE WILL TAKE [MEMORANDUM] UP ITEM K, THE AUDITOR SEARCH. THEN WE'RE GONNA GO DIRECTLY TO ITEM L, THE CITY CALENDAR. UM, WE WILL TOUCH ON ITEM M AND THEN WE'RE GONNA COME BACK TO ITEM F, THE PROCUREMENT REPORT. I KNOW I'M JUMPING AROUND A LOT. AND THEN AT 2 45 SHARP, WE'RE GONNA GO TO ITEM Q AND R, UH, BECAUSE WE'RE GONNA LOSE QUORUM AT THREE, I BELIEVE, UNLESS SOMEONE ELSE SHOWS UP. SO, WITH THAT BEING SAID, I WOULD INVITE, UH, SOMEONE FROM HR TO GIVE US A VERY QUICK UPDATE ON THE CITY AUDITOR SEARCH AND TELL US WHAT OUR NEXT STEPS ARE AS A COMMITTEE. HI, GOOD AFTERNOON. MY NAME IS ERICA GUERRERO, TALENT ACQUISITION MANAGER. YESTERDAY WE CONCLUDED THE SECOND ROUND OF INTERVIEWS FOR THE CITY AUDITOR, UM, MANAGED BY THE NOMINATING COMMITTEE, UH, COMMISSION, SORRY. AND THEY HAVE MOVED TO RECOMMEND TO BE CONSIDERED TWO, OH, SORRY, TWO EXTERNAL CANDIDATES AND ONE INTERNAL CANDIDATE. NEXT ITEM FOR THIS COMMITTEE IS TO DECIDE IF YOU WOULD LIKE TO INTERVIEW THOSE CANDIDATES OR MOVE THEM TO THE FULL COUNCIL TO HAVE AN INTERVIEW. THANK YOU, COLLEAGUES. SO I'M JUST GONNA ASK YOU NOW, UM, IF, IF WE WANT TO HOLD INTERVIEWS ON THIS COMMITTEE FOR THE THREE RECOMMENDED CANDIDATES FROM THE NOMINATING COMMISSION. UM, AND THEN IF, IF, IF WE, IF THE ANSWER'S YES, IF WE WANT TO DO INTERVIEWS HERE BEFORE THEY GO TO FULL COUNSEL, IF WE WANT TO DO THAT VIRTUALLY OR IN PERSON. UM, YEAH, THAT'S IT. VICE CHAIR. UM, WHAT ABOUT, WE DO VIRTUAL, THIS COMMITTEE INTERVIEWS THE THREE CURRENT CANDIDATES, TRYING TO NARROW IT TO TWO. OUR INTERVIEWS ARE VIRTUAL INTERVIEWS WITH COUNCIL ARE IN PERSON. THANK YOU. THAT'S A FROM THE COMMITTEE MEMBERS, THAT'S TWO SUPPORT. I SUPPORT THAT TOO. HOW, HOW DO YOU FEEL ABOUT THAT? ALRIGHT, WE ALL WANT TO DO THAT. LET'S PASS THAT ON TO THE CHAIR. WE'RE GONNA INTERVIEW HIM VIRTUALLY. WE NEED TO DO IT WITHIN THE TIMELINE TO GIVE FULL COUNSEL PLENTY OF TIME TO, TO SCHEDULE THE FINAL INTERVIEWS. SO CAN YOU WORK ON THAT WITH YOUR DIRECTOR? YES, OF COURSE. UH, YOU WANT TO HAVE THE INTERVIEWS VIRTUALLY IS OKAY FOR THIS ROUND. AND THEN YOU'LL NEED TO CHAIR ALSO TO SHARE INFORMATION ABOUT THEIR PROCESS. CORRECT? EXACTLY. OKAY. UM, SO THE CHAIR OF THE NOMINATING COMMISSION, RIGHT. TO APPEAR MM-HMM . UM, AND THEN ALSO WE NEED YOUR OFFICE TO HELP US RECOMMEND, LIKE COME UP WITH SOME, A RANGE OF SALARY [01:10:01] AND BENEFITS SO THAT WE'RE NOT JUST SHOOTING FROM THE HIP ON THAT. OKAY. SO WE, WE WANNA TALK ABOUT THAT IN EXECUTIVE SESSION AS WELL. OKAY. WHEN WE'RE DOING THOSE INTERVIEWS. OKAY. SO WE'LL GET THAT SCHEDULED AS SPECIAL CALLED. AND ANYTHING WE DON'T HIT TODAY, JACK, WE WILL, WE'LL ADD THAT TO THE SPECIAL CALLED, UM, FOR OCTOBER. ALL RIGHT. MOVING ON. UH, ANYBODY NON COMMITTEE MEMBERS, YOU GOT ANY FEEDBACK ON THAT? I KIND OF ROLLED PAST THAT. MR. RIDLEY? WELL, I THINK IT'S A GOOD IDEA THAT THIS COMMITTEE INTERVIEW THE CANDIDATES, EACH OF THE THREE CANDIDATES. THAT'S ALL I HAVE TO SAY. YOU'RE THE HONORARY COMMITTEE MEMBER, MR. RIDLEY. JUST LIKE I, I LIKE TO CALL MYSELF FOR HOUSING, SO YES. GLAD TO HAVE. THANK YOU. ALRIGHT. PROPOSED 2027 CITY CALENDAR, UH, AS THIS COMES TO THIS COMMITTEE AS WELL, UM, COLLEAGUES, IF YOU HAVE ANY FEEDBACK ON THAT, I'M JUST GONNA ASK, UM, HEY, HOW, HOW'S IT GOING MR. DOMINGUEZ? UM, WHEN DO YOU NEED FEEDBACK BY, IN ORDER FOR US TO VOTE ON MAKING CHANGES. WHEN IS THIS COMING TO FULL COUNSEL? YES. ERIC DOMINGUEZ, DIRECTOR OF OFFICE OF GOVERNOR AFFAIRS. AND SO THIS ACTUALLY IS GOING TO NEED, UM, YOUR FEEDBACK BY OCTOBER 14TH. UM, I HAVE BEEN IN, IN CONVERSATIONS WITH THE CITY SECRETARY'S OFFICE ON, UM, ADDING SOME ADDITIONAL INFORMATION. HOWEVER, AGAIN, THIS BEING BEFORE YOUR COMMITTEE, WE CERTAINLY LOOK FORWARD TO WORKING AND COLLABORATING AND ENGAGING WITH YOU AS WELL. ALRIGHT. WE'LL TAKE A COUPLE MINUTES FOR, UH, COLLEAGUES TO, UH, REVIEW THIS. I KNOW SHERIFF STEWART, UH, HAS A POTENTIAL CHANGE. YES. IF WE HAVE CHANGES NOW, CAN WE GO AHEAD AND PROPOSE THEM? YES, WE CAN. YES. OKAY. SO THE PARKS, TRAILS AND ENVIRONMENT COMMITTEE MEETING THAT IS SCHEDULED FOR JANUARY 4TH, IF WE CAN MOVE THAT TO THE FOLLOWING MONDAY, JANUARY THE 11TH. AND I THINK THERE'S A SPOT AT 9:00 AM I THINK WE'RE THERE IS A A 9:00 AM OPENING OPEN SPOT? THAT IS CORRECT, YES, MA'AM. OKAY. THAT'S MY REQUEST. THANKS. THANK YOU. AND I'LL JUST JUMP ON THAT BECAUSE THAT DATE, LIKE A LOT OF US WILL BE TRAVELING IN A, IN A LOT OF SCHOOLS ARE NOT BACK IN SESSION EITHER. IF YOU COULD CHECK WITH CHAIR MORENO TO SEE IF HE'D BE WILLING TO MOVE ECHO DEV TOO, THAT'D BE GREAT. TO ANOTHER DATE? ABSOLUTELY. YES. OKAY. UM, WEST, I APOLOGIZE, WHAT DATE DID YOU, ARE Y'ALL REFERRING TO? JANUARY 4TH, 2027. THANK YOU. MOVING THOSE COMMITTEES FROM THAT DATE. UM, CHAIR STEWART, SINCE YOU'RE ON THE, YOU'RE ON THE THE MIC RIGHT NOW, DO YOU HAVE ANY OTHER POTENTIAL CHANGES? UM, NO. NOT AT THIS TIME. OKAY. UH, CHAIR WILLIS, DO YOU HAVE ANYTHING? OKAY, HERE YOU GO. ANYBODY ELSE? SEE, UH, A UH, UM, COUNCILWOMAN CADENA? CAN YOU ON MIC? I NOTICED IT DIDN'T HAVE POTENTIAL RUNOFF DATES FOR THE CITY COUNCIL ELECTION. I THINK IT USUALLY INCLUDES THAT. SO JUST A SUGGESTION. SO LIKE, FOR THAT'D BE WHAT, DECEMBER? YEAH, DECEMBER 20TH IS INAUGURATION, ISN'T IT LIKE THE 11TH OR LIKE YEAH, OR THE SEVENTH. LIKE, AND LIKE THE POTENTIAL, I GUESS RUNOFF ELECTION. IF THERE'S ONE THAT WOULD BE GOOD FOR YOU TO CHECK WITH THE CITY SECRETARY DIRECTOR, IF YOU WOULD DO THAT. UM, I WILL TELL YOU RIGHT NOW, I'M NOT GONNA WANNA DO A FINANCE MEETING ON DECEMBER 14TH, 2027. I, I WOULD LOOK AT ALL THOSE COMMITTEES, UM, TRYING TO GET THEM CRAMMED INTO SOMEWHERE IN THE FIRST TWO WEEKS OF DECEMBER. QUALITY OF LIFE. I MEAN, I'M NOT TRYING TO SPEAK FOR THE CHAIRS OVER HERE. I GOT ALL THE CHAIRS HERE. UH, QUALITY OF LIFE, TRANSPORTATION, HOUSING AND FINANCE. POTENTIALLY MOVING THOSE UP EARLIER IN DECEMBER. YEAH. OR CANCEL 'EM. MAYBE JUST PROVIDE THAT FEEDBACK AT YOUR LEISURE TO THE DIRECTOR. OKAY. ANYBODY ELSE? FEEDBACK ON THE CALENDAR. AND YOU NEED IT BY OCTOBER WHEN? OCTOBER 14TH. OCTOBER 14TH. OKAY. GREAT. MOVING ON. UH, ITEM M AS IN MIKE. UM, I WANTED TO, I KNOW WE HAD, I SPOKE WITH ONE OF MY COLLEAGUES ABOUT THIS ITEM AND I GOT A CALL FROM, UM, THE DIRECTOR YESTERDAY ABOUT THIS. I WANT TO GIVE YOU AN OPPORTUNITY TO GIVE US A VERY BRIEF OVERVIEW OF WHY I'M GONNA BE DOING A MOTION TO DENY TOMORROW. GOOD AFTERNOON. BRIAN THOMPSON, INTERIM DIRECTOR OF FACILITIES MANAGEMENT. SO LAST WEEK DURING THE BUDGET BRIEFING WORKSHOP, UH, THERE WERE SOME PUBLIC COMMENTS RELATED TO AN UPCOMING AGENDA ITEM FOR OUR FACILITY CONDITION ASSESSMENT. SUBSEQUENTLY, UH, IT WAS FOUND OUT THAT A, A VIDEO HAD BEEN POSTED ONLINE RELATED TO THE CONSULTING FIRM THAT WE WERE GOING TO PROPOSE FOR AWARD. COME TO FIND OUT THE LOCAL PREFERENCE CRITERIA THAT [01:15:01] HAD BEEN APPLIED TO THIS PROPOSED AWARD, UH, WAS NO LONGER VALID BECAUSE THIS COMPANY DID NOT HAVE A LOCAL DALLAS OFFICE. THE INDIVIDUAL WHO PREPARED THE PROPOSAL FOR SUBMISSION DID NOT VET OR VERIFY HIS OWN CORPORATE INFORMATION BEFORE SUBMITTING THE PROPOSAL. SO BASED UPON THE FINDINGS, UH, WE FELT IT WAS OUR RESPONSIBILITY TO PERFORM OUR DUE DILIGENCE TO VET WHAT HAD BEEN REVEALED PUBLICLY. AND IN DOING SO, UM, HAVE DETERMINED THAT THIS CONSULTING FIRM IS, UH, NOT THE MOST ADVANTAGEOUS PROPOSER. SO WE ARE GOING TO SEEK THAT, UH, THIS MOTION BE DENIED. GOT IT. UM, QUESTIONS? I'LL START COMMITTEE FIRST. MR. GRACIE OR CHAIRMAN GRACIE? YEAH, THANK YOU. AND, AND THANK YOU FOR, FOR THE DUE DILIGENCE TO ACTUALLY CATCH THIS. THESE ARE THE KIND OF THINGS THAT I'M IN PARTICULAR TALKING ABOUT WITH ALL OF THE CHANGES THAT ARE HAPPENING, UM, UH, DURING, YOU KNOW, THEY'RE IMPACTING SMALL AND, AND MINORITY OWNED BUSINESSES AND LOCAL BUSINESSES TO BE ABLE TO CATCH THIS. I'M, I'M GRATEFUL FOR THAT. UM, AND I GUESS WE COULD TALK AT A LATER DATE PERHAPS, BUT I'D BE CURIOUS TO KNOW, UM, WHETHER OR NOT THIS WAS INTENTIONAL OR UNINTENTIONAL. BUT, UM, AS THESE TYPE OF THINGS CONTINUE TO HAPPEN, I WANT TO BE ABLE TO MOVE TOWARDS NOT ALLOWING THEM TO PARTICIPATE IN AN ALREADY COMPETITIVE POOL THAT'S ONLY GONNA GET COM MORE COMPETITIVE FOR LARGER COMPANIES AND LESS COMPETITIVE FOR SMALLER COMPANIES. SO AS THESE TYPE OF THINGS HAPPEN, I WANT TO BE ABLE MR. CHAIR, TO FIGURE OUT A WAY TO MOVE TOWARDS, UH, UH, SUSPENDING THEM OR GIVING 'EM AN OPPORTUNITY NOT TO COMPETE FOR A SET AMOUNT OF TIME WHEN THEY DO THESE KIND OF THINGS, IF IT'S PROVEN TO BE INTENTIONAL. THANK YOU. DID YOU HAVE A RESPONSE TO THAT? UH, IF I COULD, YES. I, I HAVE HAD MULTIPLE CONVERSATION WITH THE VICE PRESIDENT OF THIS FIRM. I, I DON'T FEEL THIS WAS AN INTENTIONAL, UH, ATTEMPT TO, UH, SECURE ADDITIONAL POINTS FOR THE SCORING CRITERIA. UM, AS FAR AS ANY PROCEDURAL ISSUES THAT WILL BE, UH, SOMETHING THAT CITY ATTORNEY AND, UH, OUR OFFICE PROCUREMENT SERVICES WOULD HAVE TO, UH, WORK THROUGH TO ESTABLISH. WELL LET, SO WERE THEY, AND I GUESS THIS IS NOT TO TO, YOU KNOW, PUT THIS UNDER INVESTIGATION RIGHT HERE, BUT DO WE KNOW WHETHER OR NOT THEY WERE LOC WHEN THEY RESPONDED? WERE THEY NOT LOCAL? SO, YES. SO THIS PROCESS WAS AN R-F-Q-R-F-P PROCESS. WHEN THE RFQ WAS ISSUED IN OCTOBER OF LAST YEAR, THEY HAD A DALLAS BASED PRESENCE. HOWEVER, WHEN THE RFP WAS ISSUED AND THEIR RESULTING PROPOSAL WAS SUBMITTED, THEIR LEASE HAD ALREADY BEEN TERMINATED. SO AT THE TIME OF THE RFP, WHICH IS WHAT THE AWARD IS BASED ON, THEY DID NOT HAVE A LOCAL PRESENCE, COULD NOT MEET LOCAL PREFERENCE CRITERIA ON THE, UH, PERSONNEL SIDE AS WELL. OKAY. THANK YOU FOR THAT CLARITY. 'CAUSE I'M READY, . ALL RIGHT. ANY COMMITTEE MEMBERS? I'M SEEING NONE. UH, WE'LL GO DOWN THIS WAY. MR. RIDLEY? YEAH. JUST A QUESTION. DOES THIS MEAN THAT YOU'LL HAVE TO START A WHOLE NEW RFP FOR ANOTHER COMPANY TO DO THIS? OR WILL YOU BE ABLE TO TAKE THE SECOND NAME ON THE LIST? UH, YEAH. SO FIRST QUESTION, NO, WE DO NOT HAVE TO START THE PROCESS OVER. UH, BUT WE'RE ESSENTIALLY NOW, UM, MAKING THEM, UH, NOT THE MOST ADVANTAGEOUS PROPOSAL. SO WE WILL MOVE TO THE NEXT, UH, FIRM ON THE SCORING EVALUATION LIST. GREAT. AND, AND ENTER INTO NEGOTIATIONS WITH THAT FIRM. EXCELLENT. THANK YOU. COOL. YES. WELL, IN THE LIGHT OF THAT INFORMATION, ARE YOU GONNA DOUBLE CHECK AND MAKE SURE ALL THE I'S ARE DOTTED IN THE TSR CROSSED? UH, WE WILL PERFORM AS MUCH DUE DILIGENCE AS POSSIBLE. AS MUCH SHORT OF MAYBE A LITTLE BIT MORE ? YES. NOW, SHORT OF DRIVING TO A, A LOCATION TO PHYSICALLY VERIFY, I CAN'T PROMISE WE'LL DO THAT. UH, BUT I CAN ASSURE YOU THIS, THIS HAS, UM, OPENED OUR EYES TO SOME THINGS. NOW, I DON'T WANT TO GET INTO A PROCESS DISCUSSION HERE BECAUSE I BELIEVE THAT, UH, WHAT WE DO AND WHAT THE OFFICE OF PROCUREMENT SERVICES DOES IS VERY THOROUGH. UM, UH, BUT GIVEN STAFFING CONSTRAINTS, THERE ARE SOME THINGS THAT WE WILL JUST NEVER BE ABLE TO DO. AND THAT'S DOING WHAT PEOPLE IN THE PUBLIC CAN DO, UM, WITH THEIR TIME TO, TO REALLY DO SOME OF THIS. BUT YES, WE WILL PERFORM ADDITIONAL DUE DILIGENCE. THANK YOU. ALRIGHT, THANK YOU. AND I THINK THIS IS THE BEAUTY OF THE PUBLIC PROCESS AND IN A LOT OF WAYS HERE, LIKE, YOU KNOW, RESIDENTS WILL CATCH STUFF. WE HAVE EYES AND EARS ALL OVER THE CITY, AND, AND I, IT WORKED OUT GREAT IN THIS, THIS SITUATION FOR SURE. THANK YOU. WE'RE GOOD. OKAY, COLLEAGUES, MOVING ON. LET'S GO TO THE [BRIEFING MEMOS] [01:20:01] PROCUREMENT ITEM, ITEM F AND LET'S JUST SEE IF WE GOT ANY, HAVE ANY QUESTIONS FROM COMMITTEE MEMBERS? DO WE HAVE SOMEBODY HERE FROM PROCUREMENT? WHAT'S THAT? I JUST LIKE THEIR REPORT. YEAH. FORMAT. AS PROMISED I MOVE YOU GUYS UP TO THE TOP SINCE EVERY DEPARTMENT COMES FOR THIS ITEM, BUT TODAY IT DIDN'T REALLY WORK SO WELL. UH, COLLEAGUES, DO YOU HAVE QUESTIONS? ANYBODY ON PROCUREMENT THIS WEEK? WOW. ALRIGHT. I SENT YOU MINE VIA THAT WAS GOOD. YES, VIA EMAIL. SO, AND THANK YOU FOR COMING BACK WITH ME. LET'S JUST SUBMIT MY QUESTIONS OUT TO EVERYBODY, UM, IN THE FRIDAY MEMOS, PLEASE. OKAY. ALRIGHT, THANK YOU. LET'S GO ON THEN AND WE'LL JUST GO DOWN IN ORDER FROM HERE UNTIL WE GET TO 2 45. ITEM G IS THE MONTHLY AUDIT INSIGHTS, UH, OF PROPOSED BUDGET REVENUES. ANY QUESTIONS, COLLEAGUES? I'M SEEING NONE. ITEM H IS THE AMERICAN RESCUE PLAN ACT, UH, CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS MONTHLY STATUS. UH, OKAY. UM, MOVING ON. ITEM I IS A MONTHLY TECHNOLOGY ACCOUNTABILITY REPORT. QUESTIONS? NOPE. ALRIGHT. ITEM N [UPCOMING AGENDA ITEMS] AS IN NOVEMBER IS, UH, THESE ARE, WE'RE NOW ONTO THE UPCOMING AGENDA ITEMS. THIS IS FOR ENVIRONMENTAL REMEDIATION WORK. IT'S A REJECTION OF PROPOSALS, NOT SEEING ANYTHING. ITEM O IS CDBG, PUBLIC FACILITY IMPROVEMENT PROJECTS WITH NONPROFITS. ANY QUESTIONS? NOT TODAY. AND ITEM P COLLEAGUES, THIS ONE IS, UH, I ANTICIPATE SOME DISCUSSION ON THIS WEDNESDAY. IT IS AN AGENDA ITEM TO AUTHORIZE THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH SPECTRUM, UH, TO CONTINUE A SHORT TERM EXTENSION OF THEIR WORK. UM, WITH THE K BAILEY HUTCHINSON CONVENTION CENTER. I, AND I THINK I'M MISTAKENLY TOLD A COUPLE FOLKS IT WAS FOR FAIR PARK, IT'S FOR THE CONVENTION CENTER. UM, I WANTED TO GIVE THEM AN OP, NOT SPECTRUM, BUT, UM, CONVENTION CENTER FOLKS, AN OPPORTUNITY TO TALK ABOUT THIS ITEM AND WHY IT IS REQUESTED, WHY WE'RE TRYING TO KEEP THEM ON FOR A FEW MORE MONTHS. BECAUSE THIS IS ULTIMATELY GONNA BE A VISIT DALLAS FUNCTION, RIGHT? YES, GO AHEAD. SO, UH, THANK YOU FOR THE QUESTION. ROSA FLEMING, DIRECTOR OF CONVENTION AND EVENT SERVICES. AND SO, AS WE TALKED ABOUT TODAY DURING THE BRIEFING FOR THE KAY BAILEY HUTCHINSON CONVENTION CENTER, WE ARE PARING DOWN. THE SPACE WILL NO LONGER BE A 2 MILLION SQUARE FOOT BUILDING WILL BE DOWN TO THE 300,000 SQUARE FEET. AND SO OUR NEEDS FOR THE VENUE ARE DIFFERENT. UM, SO WE'LL NEED TO TRANSITION SOME THINGS. AND SO IN ORDER TO DO THAT, A LOT OF THE COLLATERAL CONTRACTS THAT ARE ATTACHED TO THE OBG OR GLOBAL SPECTRUM CONTRACT ARE INCLUDE FOOD SERVICES, THE COLLATERAL SERVICES THAT OCCUR IN THE BUILDING THAT ARE NECESSARY TO KEEP IT FUNCTIONING. SO WE'D LIKE THOSE TO BE RENEGOTIATED AND NEGOTIATED TO FIT THE APPROPRIATE SPACE THAT WILL NOW HAVE AT THE CONVENTION CENTER. AND SO THIS IS A SHORT TERM EXTENSION TO ALLOW US TO DO THAT, TO AUDIT, TO MAKE SURE THAT, UM, ALL IS ALL IS WELL BEFORE WE BEGIN TO, UH, PARE DOWN ALL OF THE SERVICES AT THE CENTER. AND THIS IS A REQUEST VISIT DALLAS SUPPORTS, FROM WHAT I UNDERSTAND. YES, IT IS. OKAY. COLLEAGUES, ANY QUESTIONS ABOUT THIS ITEM? NOPE. ALRIGHT. WE'VE GOT A FEW MINUTES. I AM GONNA OPEN THE CAN OF WORMS HERE AND, UH, [CLOSED SESSION] ACTUALLY NO, LET'S GO INTO EXECUTIVE SESSION AND GET THIS ITEM KNOCKED OUT SINCE WE NEED TO GET IT DONE. IF WE HAVE TIME, WE'LL COME BACK AND WE'LL DO, UH, WE'LL DO THE PARKS BRIEFING. ALL RIGHT. IT IS NOW 2:31 PM ON SEPTEMBER 22ND, 2026. THE COMMITTEE ON FINANCE MEETING WILL NOW GO INTO CLOSED SESSION UNDER SECTION 5 5 1 0.087 OF THE TEXAS OPEN MEETINGS ACT ON THE FOLLOWING MATTER DESCRIBED ON TODAY'S AGENDA. AGENDA ITEM R, MEET YOU GUYS IN THE BACK. WE GOOD? ALL RIGHT. THE COMMITTEE ON FINANCE MEETING HAS COMPLETED ITS CLOSED SESSION UNDER SECTION 5 5 1 0.087 OF THE TEXAS OPEN MEETINGS ACT. AND AT 2:45 PM ON SEPTEMBER 22ND, 2026, WE HAVE RETURNED TO OPEN SESSION. [01:25:01] AT THIS POINT, WE [BRIEFING ITEMS (Part 2 of 2)] ARE DEFINITELY HOLDING ITEM B UNTIL THE SPECIAL CALLED MEETING. WE WILL MOVE ON AND HEAR ITEM THE PARKS ITEM, WHICH EVERYONE, LET'S SEE, ITEM D. SO I WILL INVITE, UH, DEPUTY DIRECTOR O'CONNOR TO KICK IT OFF. OKAY. GOOD AFTERNOON, MR. CHAIR, MEMBERS OF THE COMMITTEE, UM, JOINED BY ROBIN STEIN SCHNEIDER, WHO'S ASSISTANT DIRECTOR WITH DALLAS PARKS. UH, I WILL TRY TO MOVE THROUGH THIS QUICKLY, AND WE DO HAVE, UH, PHOTOS, SO I'LL BE ABLE TO, TO KIND OF FLOW THROUGH THIS PRETTY QUICKLY. NEXT SLIDE, PLEASE. UH, NEXT SLIDE. OKAY. SO JUST, UH, BY WAY OF CONTEXT, OF COURSE, WE'RE ALL AWARE THAT, UM, YOU KNOW, WE'RE ENTERING A PERIOD OF SOME CHALLENGING, UH, BUDGETS. AND SO IN RESPONSE TO THAT, WE, THE, THE PARK DEPARTMENT HAVE BEEN, UH, LOOKING, UM, DILIGENTLY AT WAYS TO MAXIMIZE REVENUE OPPORTUNITIES AND, AND, UM, AND PURSUING THINGS THAT WE HADN'T TRADITIONALLY PURSUED. UM, AND ALL THIS, OF COURSE, IS IN AN EFFORT TO ULTIMATELY LESSEN THE RELIANCE, UM, ON THE GENERAL FUND RELATED TO, UH, PARKS OPERATIONS. NEXT SLIDE. SO TO THAT END, WE HAVE BEEN, UM, EMBARKING UPON THIS SERIES OF BRIEFINGS, KIND OF AROUND BIG TOPICS OF REVENUE GENERATING OPPORTUNITIES. WE HAVE BEEN BRIEFING THE PARK BOARD, AND THEN WE ALSO HAVE BEEN BRIEFING THE PTE COMMITTEE, UH, STARTING WITH NON-TRADITIONAL USES, AKA PRIVATE DEVELOPMENTS. WE'VE ALSO LOOKED AT ADVERTISING. WE'RE CURRENTLY LOOKING AT OUR PRICING STRATEGIES AROUND FEES. WE WILL BE GETTING INTO CONCESSIONS. AND THEN FINALLY, UH, REVENUE AND FUNDING MODELS FOR THE PARK SYSTEM AT THE CONCLUSION OF, UM, OF THE SERIES OF BRIEFINGS. NEXT SLIDE. SO STARTING OFF, UH, WITH THE NON-TRADITIONAL USE OPPORTUNITIES, WE'VE BEEN REALLY INSPIRED, UH, BY TWO PARKS. UM, IN PARTICULAR ONE BROOKLYN BRIDGE PARK, UH, IN BROOKLYN IN NEW YORK CITY. AND THEN PARK LA MEXICANA, UH, IN A, IN A, UH, PORTION OF MEXICO CITY. AND IN EACH CASE, UM, THEY USED PRIVATE DEVELOPMENT TO REALLY FUND, UM, THEIR OPERATIONS. THEY LOOKED AT MIXED USE RETAIL, HOTEL MOTEL. IN THE CASE OF BROOKLYN BRIDGE, THEY ALSO INTEGRATED HOUSING. NEXT SLIDE. UH, SO STARTING WITH PARK LA MEXICANA, THIS IS A, THIS IS ABOUT A 70 ACRE PARK IN MEXICO CITY. IT WAS A FORMER LANDFILL. AND WHEN THEY REDEVELOPED IT, THEY WERE VERY INTENTIONAL ABOUT NEEDING TO, UH, FIND WAYS TO SUPPORT THE OPERATIONS OF THE PARK, NOT THROUGH MEXICO CITY'S GENERAL FUND. SO THEY GOT REALLY CREATIVE WITH RETAIL OPPORTUNITIES. UM, AND IF WE GO TO THE NEXT SLIDE, THE IMAGE ON THE RIGHT IS THE ONE I ALWAYS LIKE TO REFER TO. UM, IN THE FOREGROUND OF THE IMAGE ON THE RIGHT, YOU CAN KIND OF SEE A GREEN ROOF. THOSE ARE ACTUALLY SOCCER FIELDS, BUT WHAT THAT IS, THAT'S A COSTCO. SO THERE IS A COSTCO IN THE PARK, UM, ALSO IN THE PARK. IT'S, IT'S KIND OF A LINEAR PARK. THERE'S ALL SORTS OF RESTAURANTS. THERE'S A, THERE'S A PETCO IN THERE. AND SO ALL THESE RETAIL OPPORTUNITIES HAVE, UM, HAVE SPUN OFF LEASES. AND THOSE LEASE PAYMENTS ARE FULLY COVERING THE OPERATIONS, UM, OF THE PARK ITSELF. AND IT'S A KIND OF A, WHAT WE WOULD CALL A SIGNATURE PARK HERE IN DALLAS, BUT IT'S A VERY SIGNIFICANT PARK AND A SIGNIFICANT, UH, COMMUNITY, UH, CALLED SANTA FE IN MEXICO CITY. SO AGAIN, UM, THE USE OF PRIVATE DEVELOPMENT TO FULLY COVER THE, THE, UM, THE COST OF THE PARK OPERATIONS WAS, WAS THE TAKEAWAY, UM, AT THE SITE. NEXT SLIDE. THE NEXT ONE, UM, OF COURSE IS BROOKLYN BRIDGE PARK. FOR, FOR Y'ALL THAT DON'T KNOW, THIS IS, UM, JUST ACROSS LOWER MANHATTAN. THESE WERE, UM, OLD PIERS, UH, THAT WERE, UH, CONVERTED TO PARK USE. SO THIS IS REALLY BETWEEN THE, THE BQA, THE BROOKLYN QUEENS EXPRESSWAY AND THE WATER. IT'S ABOUT AN 85 ACRE PARK, AND IT WAS FULLY REPURPOSED. AND AGAIN, UH, THEY HAVE GOTTEN REALLY CREATIVE WITH, UH, PARTITIONING OFF A PIECE OF THE PARK IN THE CASE AT BROOKLYN BRIDGE, ABOUT 10 ACRES, EIGHT TO 10 ACRES FOR PRIVATE DEVELOPMENT THAT AGAIN, HAVE, UM, FULLY FUNDED. I'LL TALK ABOUT IT MORE IN A MINUTE. FULLY FUNDED THE OPERATIONS OF THE PARK. NEXT SLIDE. AND AT BROOKLYN BRIDGE PARK, YOU SEE ALL SORTS OF THINGS. THERE'S ACTIVE RECREATION, PASSIVE RECREATION, BUT THERE'S ALSO TONS OF RESTAURANTS, TONS OF RETAIL THAT REALLY DO SERVE AS A DIFFERENT, UH, FORM OF ACTIVATION AT THE PARK. SO, UM, YOU CAN HAVE FUN, JUST KIND OF MEANDERING AROUND THE, THE RESTAURANTS AND THE RETAIL IN ADDITION TO BEING ABLE TO PLAY BASKETBALL OR WHATEVER YOU'RE, WHATEVER YOU'RE [01:30:01] THERE FOR. THE IMAGE ON THE RIDE, I WANTED TO CALL OUT SPECIFICALLY BECAUSE THAT IS A HOTEL. UH, THEY HAVE INTEGRATED A HOTEL VERY SEAMLESSLY INTO THE PARK WHEN YOU'RE THERE. UM, THERE'S, THERE'S A LOT GOING ON AS NEW YORK CITY, BUT THE POINT IS THE, THE PRIVATE DEVELOPMENT OPPORTUNITIES HAVE BEEN BLENDED INTO THE PARK IN A REALLY SEAMLESS WAY. AND SO, UM, THEY DON'T DETRACT OR DISTRACT FROM THE, FROM THE PURPOSE OF THE PARK ITSELF. NEXT SLIDE, JUST A FEW IMAGES OF THE PARK. IT'S A SUPER COOL PARK. UH, THEY'VE GOT A TON OF ACTIVE RECREATION OPPORTUNITIES, PICKLEBALL, PLAYGROUNDS, TRAILS, UH, BEACH VOLLEYBALL, ET CETERA. NEXT SLIDE. BUT THEY'VE ALSO INTEGRATED A LOT OF PASSIVE RECREATION, ALL SORTS OF LITTLE TRAILS AND LITTLE WAYS TO KIND OF MEANDER INTO THE PARK AND GET INTO A CREATED NATURE. NEXT SLIDE. AND IN ADDITION TO THE, TO THE RESTAURANTS AND RETAIL, THEY ALSO HAVE A TON OF CONCESSION OPPORTUNITIES. AND THIS, UH, AGAIN, IT SERVES AS AN ACTIVATION, BUT ALSO SERVES AS A, UM, MEANINGFUL REVENUE OPPORTUNITY. NOT A TON OF REVENUE, BUT STILL IT'S A, IT'S A SIGNIFICANT PART OF THEIR MIX. NEXT SLIDE. AND THEN THIS SLIDE SHOWS THE DEVELOPMENT SITES. SO AGAIN, THERE'S ABOUT EIGHT TO 10 ACRES THEY KIND OF CARVED OFF INTENTIONALLY FOR, UM, FOR DEVELOPMENT SITES. SO IT DOES INCLUDE RESIDENTIAL, WHICH WOULD BE SOMETHING THAT WE COULDN'T PURSUE HERE LOCALLY. BUT AGAIN, IT'S, IT'S RESTAURANTS, IT'S RETAIL, IT'S HOTEL, UM, VERY SEAMLESSLY BLENDED INTO THE DESIGN OF THE PARK. NEXT SLIDE. AND SO HERE'S KIND OF, HERE'S KIND OF THE START OF WHAT THE MONEY LOOKS LIKE. SO YOU CAN SEE THE, THE PIE CHART ON THE LEFT SHOWS THAT 90% OF THEIR REVENUE COMES FROM THE REAL ESTATE DEVELOPMENT THAT'S, UM, IN THE FORM OF PAYMENT, IN LIEU OF TAXES, AS WELL AS GROUND LEASES THAN A SMALLER PORTION TO CONCESSIONS, AND THEN EVENTS AND PERMITS AND THAT SORT OF THING. NEXT SLIDE. AND, UM, SO THE BIG TAKEAWAY HERE ON THIS SLIDE IS, UH, THEY BRING IN ABOUT $30 MILLION A YEAR, AND THE OPERATIONS AND MAINTENANCE OF THE PARK ARE 15. SO NOT ONLY DO THEY, THEY FULLY COVER THE OPERATIONS AND MAINTENANCE OF THE PARK, BUT THEY'RE ABLE TO, TO PUT AWAY ANOTHER 15 MILLION, UH, TOWARDS, UH, RESERVES. UM, AND THEN THERE'S SOME ADMINISTRATION FEES. SO, UM, AGAIN, THE, THE TAKEAWAY IS THIS IS, UH, THE ABILITY TO BLEND IN PRIVATE DEVELOPMENT CAN, UH, IN A VERY MEANINGFUL WAY GENERATE THE REVENUE THAT THAT'S, THAT COULD BE USED TO, UM, IN THESE TWO CASES, FULLY OPERATE THE PARKS AND CREATE A RESERVE. NEXT SLIDE. AND THEN I JUST WANTED TO REMIND ALL OF US THAT WE ALL KNOW, OF COURSE, BUT WE'VE ALREADY STARTED TO KIND OF GO IN THIS DIRECTION IN CERTAIN PARKS. CLYDE WARREN, NAMELY, UM, WE HAVE A MI THERE. SO, YOU KNOW, WE'VE ALREADY STARTED TO, UM, OVER THE PAST 10 YEARS OR SO, START TO INTEGRATE, UM, SOME KIND OF PRIVATE DEVELOPMENT OPPORTUNITIES WITHIN OUR PARKS. YOU CAN THINK OF ARBORETUM, THEY HAVE A GIFT SHOP, THEY HAVE RESTAURANTS, OF COURSE, UM, THE ZOO, SIMILAR THINGS. SO WE'RE STARTING TO MOVE IN THAT DIRECTION, BUT, UM, WE PROPOSE TO MOVE INTO IT, UH, MORE AGGRESSIVELY. NEXT SLIDE. SO PIVOTING FROM NON-TRADITIONAL KIND OF PRIVATE DEVELOPMENT USES INTO SIGNAGE. UH, THIS IS ANOTHER, UH, REVENUE OPPORTUNITY, VERY NON-TRADITIONAL THAT WE HAVE, UH, BEGUN TO EXPLORE. SO WHAT WE'RE TALKING ABOUT HERE ARE LOOKING AT KIND OF CUSTOM ARCHITECTURAL, UH, SIGNS THAT COULD COMPLIMENT THE PARK'S CHARACTER, BE INTEGRATED INTO THE, UM, INTO THE OVERALL, UH, FEEL OF THE PARK. UM, AND THEN OF COURSE WE WOULD CONSIDER LOCATING THEM ON THE EDGES SO THAT THESE SIGNS WOULD NOT BE INTERFERING WITH THE UTILITY OF THE PARK. UM, AND THEY WOULD BE DESIGNED IN A WAY TO KIND OF MINIMIZE THE ADVERTISING OPPORTUNITY FROM THE FOLKS THAT ARE SITTING IN THE PARK. THIS WOULD REALLY BE FACING AWAY FROM THE PARK. NEXT SLIDE. A COUPLE OF EXAMPLES. THERE'S, THERE'S A WHOLE LOT OF EXAMPLES, UM, THAT WE HAVE SHARED WITH THE PTE COMMITTEE, BUT THESE ARE JUST TWO REPRESENTATIVE EXAMPLES. THESE ARE STARTING, THESE TYPES OF SIGNS ARE STARTING TO SHOW UP IN THE UNITED STATES. THEY, THEY'RE ALSO IN ASIA, BUT THESE TWO ARE, UM, IN LOS ANGELES, THEY'RE STARTING TO SHOW UP IN CHICAGO. THEY'RE STARTING TO SHOW UP IN, IN MIAMI. UM, SO THESE KIND OF NEW, UH, ARCHITECTURALLY INTERESTING SIGNS ARE, ARE COMING AND THEY, UH, AND THEY HAVE VERY SIGNIFICANT REVENUE GENERATING OPPORTUNITIES. NEXT SLIDE. [01:35:01] THIS IS, UH, THIS IS NOT A, AN EXISTING PARK, BUT WE WANTED TO SHOW AN EXAMPLE OF, YOU KNOW, KIND OF A NORMAL PARK IN DALLAS THAT HAS A SOCCER FIELD. IT'S GOT A BASKETBALL COURT, A PLAYGROUND, A PAVILION, ET CETERA. IF WE WERE TO, UM, IF WE WERE TO CONSIDER SIGNAGE, WHERE WOULD BE, WHERE WOULD BE APPROPRIATE PLACES TO PLACE THEM. AND SO YOU CAN SEE THAT WE WOULD RECOMMEND THAT THEY BE ON KIND OF THE PERIMETERS OF THE PARK FACING OUT, NOT FACING IN. UM, AND NEXT SLIDE. SO THE MONEY, UM, AGAIN, THIS IS ALL VERY PRELIMINARY AND, AND, UH, WE'RE JUST STARTING TO EXPLORE IT. BUT THE POINT HERE IS THAT THESE, THESE COULD BRING IN A VERY SIGNIFICANT AND MEANINGFUL AMOUNT OF REVENUE. UM, YOU KNOW, SIX TO SEVEN FIGURE SIGNING BONUSES, UM, A FEW LOCATIONS, UH, COULD, COULD GENERATE, YOU KNOW, UP TO 10 MILLION BUCKS A YEAR. NEXT SLIDE. AND THEN THERE WOULD BE A FEW, UH, ANCILLARY RELATED PUBLIC BENEFITS IF WE WERE TO PURSUE THIS. THINGS LIKE CITY MESSAGING, OPPORTUNITIES, UH, PROMOTION OF LOCAL EVENTS, WAYFINDING, ET CETERA. NEXT SLIDE. THE WAY THAT THIS WOULD BE STRUCTURED, SHOULD, IT SHOULD, UH, SHOULD IT MAKE SENSE, IT LIKELY WOULD BE THROUGH A LEASE. UM, THERE WOULD HAVE TO BE LIMITED, UH, NUMBERS OF LOCATIONS THAT WOULD HAVE TO BE APPROVED BY THE CITY. AND WE WOULD LOOK TO HAVE A, THAT KIND OF DESIGN FIRST APPROACH. SO THEY WOULD NEED TO BE ARCHITECTURALLY INTERESTING, ET CETERA, BLENDING INTO THE CHARACTER OF THE PARK. NEXT SLIDE. IN ADDITION TO THOSE KIND OF LARGE FORMAT SIGNS, WE'RE ALSO, UH, EXPLORING AND LOOKING INTO THE CITY'S CURRENT KIOSK, UH, VENDOR. SO WE'RE LOOKING TO SEE, UM, DO SOME OF THOSE MAKE SENSE IN LIMITED LOCATIONS IN THE PARK SYSTEM THAT WOULD AGAIN, GENERATE REVENUE, UH, OPPORTUNITIES, BUT ALSO HAVE SOME MESSAGING, UH, BENEFITS TO US. AND WE ARE, UH, ISSUING AN RFP FOR BANNERS IN THE PARKS. AND THESE WOULD REALLY BE MORE, UH, ON THE ATHLETIC FIELD FENCES, OPPORTUNITY FOR SPONSORS AND THAT SORT OF THING IN OUR ATHLETIC FIELDS. NEXT SLIDE. HEY RYAN, WE'RE GONNA JUST STOP HERE BECAUSE WE WE'RE ABOUT TO, WE'VE, WE'VE GOT COMMITTEE MEMBERS. THEY HAVE THREE O'CLOCK COMMITMENTS. UM, I WAS TRYING TO GO AS QUICK AS I COULD. HERE'S WHAT MY PLAN IS. THIS WAS GREAT. THANK YOU. WE WILL, UM, WE'RE MISSING THREE COMMITTEE MEMBERS TODAY. UH, ONE OF THEM IS ON PTE, SO THEY'VE ALREADY HAD THIS BRIEFING. UM, MORENO IS NOT AND WHO'S THE OTHER ONE? JAIME. SO MR. RESENDEZ, MR. MORENO, IF YOU CAN CONNECT WITH THEM. SURE. BETWEEN NOW AND LIKE THE NEXT TWO WEEKS, WE'LL BE DOING A SPECIALLY CALLED FINANCE COMMITTEE MEETING TO INTERVIEW THE AUDITOR AND, UH, AND AUDITOR CANDIDATES AND TO GO PROCEED WITH ITEM B. WE WILL ADD YOU TO THAT. YOU WON'T HAVE TO BRIEF AGAIN, YOU'LL JUST GO STRAIGHT INTO QUESTIONS. OKAY. SO COLLEAGUES WOULD THANK YOU FOR, WITH THAT BEING SAID, THIS COMMITTEE MEETING IS ADJOURNED. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.