[ Call to Order - Determine if a Quorum is Present]
[00:00:02]
GET IT OFF.ALRIGHT, WE WILL NOW CALL THIS MEETING TO ORDER AT 5:30 PM WE'LL DETERMINE IF A COURT IS PRESENT.
UM, BROOKE'S STORY IS NOT HERE.
WE HAVE A SLEW OF OTHERS IN OUR, UM, ROOM.
I GUESS, DO YOU WANT ME TO GO AROUND AND HAVE EVERYBODY INTRODUCE THEMSELVES OR WHAT WOULD BE THE BEST WAY? NO, I THINK WE'RE GOOD.
SECRETARIES, YOU'VE GOT THAT
SECONDARIES HAVE JUST GOTTA NOTATE IT AND THEN YOU'LL BE GOOD.
SO CAN WE ALL PLEASE STAND FOR THE INVOCATION AND PLEDGE OF ALLEGIANCE? TIMMY, DO YOU MIND PRAYING FOR US? I PRAY? YEAH.
DEAR HEAVENLY FATHER, WE JUST THANK YOU FOR TONIGHT.
WE THANK YOU FOR THE SAFE TRAVELS AND UH, WE PRAY FOR SAFE TRAVELS AS THOSE THAT ARE, UH, COMING TONIGHT.
AND LORD, WE JUST PRAY FOR DISCERNMENT AND WISDOM AS WE MAKE DECISIONS FOR THE CITY OF AUBREY.
AND, UH, JUST BE WITH US TONIGHT IN SAFE TRAVELS BACK HOME.
ALRIGHT, PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL, HONOR THE TEXAS FLAG.
I PLEDGE ALLEGIANCE TO THE TEXAS ONE STATE UNDERGONE ONE AND INDIVISIBLE.
[ Community Announcements]
ANNOUNCEMENTS.THE NEXT PRE JAR JUNCTION FARMER'S MARKET IS SATURDAY, SEPTEMBER 5TH AT THE VETERAN'S PARK IN DOWNTOWN AUBREY.
AND VENDORS CAN SIGN UP TO SELL BY CONTACTING THE CITY PARKS AND RECREATION DEPARTMENT.
ALSO, THE NEXT THREE 80 AREA CHAMBER OF COMMERCE LUNCHEON IS ON WEDNESDAY, AUGUST 19TH AT 11:30 AM AT RANCHO DE LA ROCA.
DOES ANYBODY ELSE HAVE ANY OTHER ANNOUNCEMENTS? AWESOME.
ARE THERE ANY CITIZENS HERE WHO WOULD LIKE TO ADDRESS THE BOARD CONSENT ITEMS?
[ Consent Items]
WE HAVE APPROVED MINUTES FROM JULY 14TH, 2026, NDD BOARD MEETING AND APPROVE THE TWO JUNE, 2026 FINANCIAL REPORT.DOES ANYONE WISH TO REMOVE AN ITEM FROM THE CONSENT AGENDA OR DO I HAVE A MOTION TO APPROVE CONSENT AGENDA? I MOVE TO APPROVE.
ALL THOSE IN FAVOR? ALL RIGHT.
ALL THOSE OPPOSED CONSENT AGENDA PASSES FOUR TO ZERO, NEW BUSINESS.
[ New Business]
WE WILL RECEIVE A PRESENTATION FROM BILL KRUGER WITH CSL INTERNATIONAL AND HOLD A DISCUSSION ON THE FEASIBILITY STUDY FOR AN INDOOR SPORTS CON SPORTS FACILITY AND HOTEL DEVELOPMENT.DO YOU MIND, BILL? WELCOME BILL TO THE STAGE.
GOOD TO, GOOD TO SEE EVERYBODY.
BEING HERE, I HAD TO FIGHT TRAFFIC.
TWO HOUR DELAY COMING OUTTA CHICAGO THIS AFTERNOON.
UM, SO I'VE GOT A PRESENTATION, UM, COVERING TWO STUDIES, SO IT'S GONNA BE A LOT OF DATA, A LOT OF INFORMATION.
I WOULD LOVE TO MAKE THIS AS USEFUL AS POSSIBLE FOR YOU.
UM, SO IF THERE'S ANY QUESTIONS AND YOU WANT TO DRILL INTO SOME OF THIS OVERVIEW A LITTLE BIT FURTHER, PLEASE STOP ME.
THERE ARE TWO SEPARATE REPORTS.
I'VE CONSOLIDATED ALL THAT INTO ONE PRESENTATION OF ABOUT 35 SLIDES, BUT IT'S REALLY DATA DENSE, SO THERE'S GONNA BE A LOT OF INFORMATION.
SO I'D LOVE, UH, YOU KNOW, TO STOP AND MAKE SURE THAT YOU UNDERSTAND EVERYTHING THAT WE'RE GOING THROUGH IT.
I MAY BE GOING TOO QUICKLY TOO, SO JUST FEEL FREE TO STOP ME.
AND IF I NEED TO TAKE A BREATH AND, AND, UH, YOU CAN KIND OF ABSORB SOME OF THIS INFORMATION A LITTLE BIT BETTER.
WHAT BUTTON AM I, AM I HITTING THIS MAIN BUTTON HERE? NO, IT'S ONE BUTTON ONE ABOUT, OKAY.
SO, UH, IF YOU RECALL, WE WERE RETAINED BY THE CITY TO, TO DO LOOK AT TWO DIFFERENT TYPES OF FEASIBILITY STUDIES.
ONE WOULD BE FOR A, A NEW HOTEL PRODUCT DEVELOPMENT IN AUBREY, AND THE NEXT WOULD BE AN, SOME KIND OF AN INDOOR AMATEUR SPORTS FACILITY.
SO, JUST A LITTLE BIT OF BACKGROUND ABOUT MYSELF.
I'M, UH, A SENIOR VICE PRESIDENT WITH LEGENDS AND C-S-L-C-S-L STANDS FOR CONVENTION SPORTS AND LEISURE
[00:05:02]
INTERNATIONAL.AND SO WE'VE GOT OFFICES IN FRISCO, WE'VE GOT OFFICE UP IN MINNEAPOLIS, WHICH I'M FROM.
UM, I GET INVOLVED AND I LEAD THESE TYPES OF PROJECTS, HOTEL PROJECTS AND SPORTS PROJECTS FOR OUR COMPANY OR A COMPANY THAT RELATE TO AMATEUR SPORTS.
AND SO THAT'S WHY I AM ALL THE WAY FROM THE MINNEAPOLIS AREA ALL THE WAY DOWN HERE TO, UH, TO PRESENT TO YOU.
SO IF YOU RECALL, I BELIEVE I MET WITH A NUMBER OF YOU, UM, EARLY ON IN OUR PROCESS, I WANNA SAY THREE OR FOUR MONTHS AGO.
AND THAT'S USUALLY THE TIMEFRAME FOR A FEASIBILITY STUDY.
UM, ONE THING THAT WE NOTICED WHEN WE STARTED HAVING CONVERSATIONS WITH STAKEHOLDERS AND THE CITY FOLKS AND, AND OTHER PEOPLE WITHIN THE COMMUNITY WHILE WHILE I WAS IN TOWN, UM, THE SECOND BULLET UP THERE, WHICH IS THE ENVISIONED OPPORTUNITIES IN THE CONTEXT OF THIS MASSIVE GROWTH THAT YOU'RE HAVING WITHIN THIS AREA THAT'S COMING UP, YOU KNOW, TO THE NORTH THROUGH AUBREY AND OTHER OF THESE SMALLER COMMUNITIES.
UM, IT IT, IT IS A, A SMART AND STRATEGIC DECISION FOR YOU TO START THINKING ABOUT THESE ITEMS. 'CAUSE BOTH OF THESE TYPES OF ITEMS CAN BE REALLY TRANSFORMATIVE FOR YOUR COMMUNITY AND POSITION YOU BEST TO REALLY TAP INTO THIS POPULATION GROWTH AND COMMERCIAL GROWTH THAT'S GONNA BE COMING YOUR WAY.
UM, CERTAINLY WE'VE NOTED THROUGH A LOT OF OUR, OUR INTERVIEWS WITH LOCAL USER GROUPS AND STAKEHOLDERS AND THE LIKE, AND, AND A LOT OF, UH, YOU THAT THAT MENTIONED THAT, UM, ON THE SPORTS SIDE IN PARTICULAR, A LOT OF THESE FAMILIES AND, AND THEIR, AND THEIR, AND THEIR, UM, AND THEIR CHILDREN REALLY ARE LACKING SOME OF THESE, UH, FACILITY OPPORTUNITIES.
YOU KNOW, MANY OF THE SPORTS FACILITIES THAT ARE INDOOR WITHIN YOUR COMMUNITY, BASICALLY ALL OF THEM ARE SCHOOL RELATED, YOU KNOW, AND SO THE SCHOOLS ALWAYS HAVE A PECKING ORDER IN TERMS OF ATHLETIC PROGRAMS FIRST AND THEN ALL SCHOOL RELATED THINGS NEXT.
AND SOMETIMES THEY'RE, THEY'RE JUST NOT AVAILABLE OR ACCESSIBLE FOR A SIGNIFICANT AMOUNT OF NON-SCHOOL RELATED, UH, LEAGUE PLAY OR CAMPS OR CLINICS AND OF COURSE TOURNAMENTS AND THINGS LIKE THAT.
AND SO, COMMUNITIES LIKE YOURS IN PARTICULAR WITH THE AMATEUR SPORTS FACILITY, WHAT WE SEE ACROSS THE ENTIRE COUNTRY IS NOT THOSE TYPES OF, THESE TYPES OF FACILITIES LOCATED IN CENTRAL BUSINESS DISTRICTS OF BIG CITIES.
INSTEAD, THEY TEND TO BE LOCATED IN THE SUBURBAN AREAS OR THE AREAS AROUND THE CITY.
UM, AND THAT'S WHERE A LOT OF THE BEDROOM COMMUNITIES ARE, AND A LOT OF THE RESIDENTIAL AREAS ARE.
THEY'VE GOT A GOOD INTERSTATE ACCESS AND HIGHWAY ACCESS.
AND SO THERE'S, UM, YOU KNOW, THERE'S AN, WHEN YOU THINK ABOUT AUBREY IN THE CONTEXT OF THE GREATER DFW METRO AREA AND THE GROWTH THAT'S HAPPENING, YOU KNOW, THE LOCATION ABOUT WHERE YOU'RE LOCATED IS REALLY GONNA BE A PRIME LOCATION FOR A FACILITY LIKE THIS IN JUST A MATTER OF YEARS.
YOU KNOW, IN TERMS OF THE CONTINUED GROWTH THAT'S HAPPENING.
AND LIKEWISE, YOU'RE LACKING ANY HOTEL FACILITY PRODUCT RIGHT NOW.
YOU'VE GOT SOME OF THE, UH, AIRBNBS AND, YOU KNOW, BED AND BREAKFAST AND SOME OF THESE, YOU KNOW, O OTHER TYPES OF, UM, PRIVATELY OWNED, YOU KNOW, UH, HOSPITALITY FACILITIES THAT ARE SOMEWHAT PROVIDING A LITTLE BIT OF A RELIEF VALVE, YOU KNOW, WITHIN YOUR COMMUNITY.
UH, A LOT OF THE HOTELS ARE LOCATED, UH, CLUSTERED IN DENTON, AS YOU'LL SEE IN, IN OTHER AREAS NEARBY.
BUT, BUT THE CITY OBVIOUSLY IS, IS LACKING A HOTEL, UH, FACILITY, UH, UH, IN AND OF ITSELF RIGHT NOW.
SO IN TERMS OF LOOKING AT WHAT WE DID, OUR EXPERIENCE, YOU KNOW, I'VE BEEN WITH THE COMPANY FOR 31 YEARS NOW, DONE PROJECTS ALL THROUGHOUT THE ENTIRE COUNTRY OF THIS NATURE AND OTHER, I ALSO DO CONVENTION CENTER STUDIES, ARENAS, STADIUMS, PERFORMING ARTS CENTERS, AMPHITHEATERS, THOSE KIND OF PROJECTS LIKE THAT.
BUT REALLY THE CORE OF A LOT OF MY BUSINESS RECENTLY IN THE LAST DECADE HAS BEEN HOTEL STUDIES AND AMATEUR SPORTS FACILITIES TYPE STUDIES.
SO WE DID THIS, UH, KICKOFF VISIT.
WE HAD THE TOURS AND MEETINGS WITH STAKEHOLDERS, AND THEN A BIG PART OF, OF WHAT WE DID TOO, ONCE WE COMPLETED THOSE, THAT THAT KICKOFF VISIT AND THOSE MEETINGS IS WENT BACK TO OUR OFFICES.
AND, AND MY STAFF AND I, WE REACHED OUT TO LOTS OF DIFFERENT REGIONAL AREA SPORTS GROUPS IN PARTICULAR, AND ALSO TOURNAMENT PRODUCERS FROM MORE OF A LARGER REGIONAL SCOPE AND, AND, AND, UM, AND NATIONAL SCOPE AS WELL.
YOU, YOU REALLY NEED TO TEST BOTH OF THOSE MARKETS TO REALLY UNDERSTAND WHAT THE FULL MARKET DEMAND WOULD BE FOR, FOR AN INDOOR AMATEUR SPORTS FACILITY PROJECT LIKE THIS.
YEAH, I GUESS IT'S WORKING OUT A LOT OF NUMBERS UP HERE, BUT, YOU KNOW, I'M JUST TRYING TO PAINT THE STORY FIRST.
YOU'LL SEE AT THE VERY TOP THAT THIS IS, YOU KNOW, I'M GONNA TRY TO PLOW THROUGH THE HOTEL ANALYSIS QUICKLY.
WHEN WE LOOK AT POPULATION, THIS IS ONE THING THAT CHRISTINE MENTIONED TO ME, UH, YESTERDAY.
I BELIEVE THAT, UH, THE BASIS FOR THESE NUMBERS IS ESRI.
AND, UH, I KNOW THAT THE NUMBERS DON'T MATCH EXACTLY WHAT, WE'RE TRYING TO STILL RECONCILE THAT WITH SOME OF THE NUMBERS THAT, THAT THE MDD HAS ON ITS WEBSITE, AS AN EXAMPLE.
SO WHEN YOU LOOK AT THE CITY OF AUBREY AT 8,500, THE NUMBERS THAT YOU'RE SHOWING THROUGH ESRI, EVEN THOUGH WE WEREN'T ABLE TO VERIFY THAT YESTERDAY, UH,
[00:10:01]
WAS A LITTLE BIT DIFFERENT.BUT IT DOESN'T CHANGE ANY OF THE ANALYSIS OR THE MESSAGE OR THE CONCLUSIONS AS IT RELATES TO THIS.
BUT I'M JUST LETTING YOU KNOW THAT WE'LL HAVE THAT TIED UP AND WE'LL HAVE THAT RECONCILED BEFORE THE FINAL REPORTS ARE RELEASED, UH, FOR BOTH OF THESE PROJECTS.
BUT THE MAIN TAKEAWAY FROM ALL THIS IS JUST THE MASSIVE AMOUNT OF POPULATION YOU'VE GOT WITHIN A PRACTICAL DRIVING DISTANCE.
AND USUALLY WHEN YOU'RE THINKING ABOUT, UM, YOU KNOW, ON THE HOTEL SIDE OF THE EQUATION IS, IS YOU'VE GOT THESE PEOPLE COMING IN AND THEY DON'T NECESSARILY CARE ABOUT CITY BOUNDARIES.
THEY'RE COMING TO TOWN, THEY NEED TO GO TO POINT B, WHICH IS THEIR END LOCATION FOR THEIR TRAVEL, WHETHER IT'S A LEISURE VISIT OR A COMMERCIAL, UH, A CORPORATE KIND OF A MEETING OR SOME, OR A CONFERENCE OR SOMETHING LIKE THAT.
AND SO THEY'RE JUST TRYING TO FIND CONVENIENCE, ESPECIALLY WITH LOYALTY PROGRAMS AND NATIONALLY BRANDED HOTEL PRODUCTS, THAT THEY'LL JUST SAY, HOW LONG IS IT GONNA TAKE ME TO GET TO THE HOTEL FROM WHERE I NEED TO BE IN THIS COMMUNITY? AND SO BY VIRTUE OF THAT, YOU'RE ABLE TO TAP INTO A LOT OF THIS ACTIVITY, EVEN, YOU KNOW, DENTON AND FRISCO AND SOME OF THOSE THINGS POTENTIALLY TO BE ABLE TO ATTRACT UP HERE FROM THAT REGIONAL TECH DEMAND.
AND THEN OBVIOUSLY A LOT OF THE LOCAL DEMAND, UM, THAT THEY'VE BEEN HAVING TO GO TO SOME OF THE, UH, THE AIRBNBS AND THINGS LIKE THAT, OR DRIVE FURTHER DISTANCES, WE CAN CAPTURE THAT.
AND SO WHEN YOU'RE LOOKING AT THIS GROWTH AND THE POTENTIAL FOR GROWTH IN THE FUTURE AND THE TRIPLING EVERY FIVE YEARS OF YOUR POPULATION, I MEAN, YOUR DEMOGRAPHICS ARE REALLY POSITIONED FOR YOU TO, TO REALLY BE THINKING ABOUT LAUNCHING INTO INCENTIVIZING, HOPEFULLY TO A SMALL DEGREE.
AND I'LL SHOW YOU WHAT, WHAT THOSE NUMBERS LOOK LIKE HERE SHORTLY.
BUT A PROJECT TO KIND OF INCENTIVIZE IT AND TO FACILITATE A A, YOUR FIRST HOTEL AND IT, YOU KNOW, IT, UH, THE NUMBERS WILL LINE UP WELL.
AND, AND AS YOU CAN SEE WITH SOME OF THE PROJECTIONS, THE FEASIBILITY GAP OR WHAT WE ARE PROJECTING TO BE THE INCENTIVE THAT WOULD BE REQUIRED TO MAKE THE PRIVATE SECTOR INTERESTED IN INVESTING IN THIS HOTEL TYPE PROJECT IS FAIRLY LIMITED, IS FAIRLY SMALL, ESPECIALLY IN THE CONTEXT OF A LOT OF THESE HOTEL PROJECTS I'VE BEEN DOING IN RECENT YEARS WHERE CONSTRUCTION COSTS ARE SO HIGH AND THEY'RE JUST ESCALATING VERY DRAMATICALLY.
AND, AND THAT THAT INCENTIVE THAT, THAT WE FEEL IS, IS, IS, UM, IS GONNA BE NEEDED FOR THIS HOTEL PROJECT IS RELATIVELY SMALL IN THE CONTEXT OF THE OVERALL PROJECT.
DENTON COUNTY TOURISM IS ANOTHER THING.
THIS IS, YOU KNOW, UH, THIS IS ALSO IMPORTANT TO, TO KIND OF THINK ABOUT ALL THE TOURISM LEVELS, UH, WITHIN THE COUNTY ITSELF AND THE ABILITY TO KIND OF TAP INTO SOME OF THAT.
SO IT, THIS IS JUST PART OF THIS ANALYSIS TO SHOW YOU THAT WE THOUGHT WE THOUGHT ABOUT THAT AND WE DUG INTO THE TOURISM ASPECT IN ADDITION TO THE RESIDENTIAL POPULATION PART.
A LOT OF STUFF GOING ON IN THIS CHART RIGHT HERE, BUT THIS IS, YEAH, REALLY KIND OF A, A, A COUPLE, A FEW ANALYSES THAT WE DID WITH REGARD TO THE HOTEL INVENTORY IN DENTON COUNTY.
AND SO WHEN YOU CAN SEE IN THAT MAP, THE, THE, THE START LOCATION WHERE, WHERE AUBREY IS, YOU COULD OBVIOUSLY SEE SOME OF THE BIG POCKETS OF SOME OF THE EXISTING HOTELS.
THERE ARE A NUMBER, MANY HOTELS THAT ARE IN PLANNING WITHIN DENTON COUNTY.
THERE'S WAY TOO MANY TO EVEN TO START ADDING UP.
AND SO OFTENTIMES, YOU KNOW, RIGHT NOW SOME PRETTY SUBSTANTIAL, UH, PLANNED PROJECTS THAT ARE UNDERWAY ARE THE ONES IN PINK ON THE LEFT HAND SIDE RELATIVE TO THE, THE DARKER RED COLOR.
SO WE'VE, WE'VE CONSIDERED ALL THAT.
AND JUST TO LET YOU KNOW THAT, THAT EVEN IF THESE HOTELS DON'T SHOW UP ON OUR MASTER LIST WITHIN THE REPORT, THAT WE'VE UNDERSTOOD THAT THERE ARE A COUPLE DOZEN WITHIN THE COUNTY THAT ARE IN VARIOUS STAGES OF DISCUSSION, PLANNING, ADVANCED PLANNING, AND THOSE KIND OF ISSUES LIKE THAT.
BUT WHEN YOU JUST LOOK AT THE COUNTY OVERALL, 9,600 TOTAL HOTEL ROOMS, 90 LODGING PROPERTIES, IT'S A LOT OF PROPERTIES.
BUT YOU KNOW, THE NEAREST HOTEL THAT EXISTS RIGHT NOW IS, YOU KNOW, QUALITY HOTEL WHERE YOU'D WANT TO GO ALL THE WAY DOWN TO LIKE A SPRING HILL SUITES IN DENTON, THAT'S 14 MILES AWAY.
YOU KNOW, YOU'VE GOT THE HOLIDAY INN EXPRESS COMING IN AT PILOT POINT, WHICH IS GONNA BE A NICE PROJECT TO YOUR NORTH.
UM, BUT, UH, BUT BUT BEYOND THAT, YOU KNOW, YOU'VE GOT NEARBY, YOU, YOU, YOU'RE REALLY LACKING SOME OF THESE HOTEL PRODUCTS.
SO THAT'S, THAT'S KIND OF AN IMPORTANT FOUNDATION TO UNDERSTAND WHAT EXISTS AROUND YOU AND WHAT OUR FIRST STEP COULD BE IF WE WANT TO GET INTO THE HOTEL GAME WITH AN AUBREY, YOU KNOW, SO IT'S WITH A LOT OF CLIENTS, THEY'VE, THEY'VE GOT A BUILT OUT HOTEL PACKAGE, AND SO MAYBE THEY'RE LOOKING TO GET INTO A NEW HOTEL CLASS, LIKE A UPPER UPSCALE, LIKE A FULL SERVICE BRAND VERSUS ALL THE LIMITED SERVICE, UH, PROPERTIES THAT THEY CURRENTLY HAVE.
BUT USUALLY THE LOGICAL FIRST STEP WHEN YOU'RE TRYING TO GET YOUR FIRST HOTEL IS, IS TO UNDERSTAND THAT YOU, YOU'RE BETTER SERVED BY GETTING A QUALITY PRODUCT THAT MATCHES WHAT THE PRIVATE SECTOR IS GOING TO DO, DO WITH AN INCENTIVE TO COME IN.
SO THAT'S WHY WE WOULD ALWAYS THINK ABOUT IN A CASE LIKE YOURS, A MIDSCALE OR AN UPSCALE PRODUCT.
AND WHEN YOU THINK ABOUT THOSE KIND OF BRANDS,
[00:15:01]
THOSE ARE THINGS LIKE COURTYARD MARRIOTT, HILTON, GARDEN INN, FAIRFIELD, UH, SPRINGHILL SUITES, YOU KNOW, THOSE KIND OF HOTEL PROJECTS LIKE THAT THAT ARE WOOD FRAME, WOOD STICK CONSTRUCTION, AS OPPOSED TO THE FULL SERVICE ONES THAT TEND TO BE STEEL CONCRETE TOWERS.THAT CAN BE EXTREMELY EXPENSIVE.
YOU KNOW, IF YOU THINK ABOUT THE, THE DENTON EMBASSY SUITES, THAT'S A VERY EXPENSIVE PROJECT THAT WAS A P THREE, BUT THEY WERE DOING THAT IN THE CONTEXT OF LOTS OF OTHER HOTELS THAT THEY HAD WITHIN, WITHIN THEIR COMMUNITY.
SO, SO THAT'S, THAT'S TO KIND OF PROVIDE A LITTLE BIT OF, UH, UH, OF THE STAGE IN TERMS OF WHAT WE'RE THINKING ABOUT FOR A HOTEL.
WE ALSO LOOKED AT ALL THE PERFORMANCE OF THE DENTON COUNTY HOTELS AND, YOU KNOW, YOU'VE GOT A PRETTY, YOU DON'T HAVE TOO MANY BIG PEAKS AND VALLEYS.
YOU'VE GOT A LITTLE BIT, YOU KNOW, IN THE SPRING AND THE FALL LIKE WE WOULD NORMALLY SEE.
BUT YOU KNOW, WE, WE MAKE SURE THAT WE RESEARCH ALL THESE HOTELS, UNDERSTAND WHERE THE, WHERE THE RATE PRECEDENT IS AND WHAT THE OCCUPANCY LEVELS ARE, UH, WITHIN THE COMMUNITY.
BUT IMPORTANTLY, LIKE I MENTIONED BEFORE, AUBREY HAS THESE VACATION RENTALS OR THE AIRBNBS, AND SO WE HAVE A DATA SOURCE THAT WE'RE ABLE TO LOOK AT AND TRACK SOME OF THOSE.
AND SO YOU'RE SEEING A NICE STABLE AND SLOW GROWTH, UH, OVER, OVER RECENT YEARS IN TERMS OF THE NUMBER OF, OF AVAILABLE PROPERTIES AND WHAT THE RATE THEY'RE CHARGING.
YOU ALWAYS SEE WITH VACATION RENTALS, THE OCCUPANCY LEVELS A LOT LOWER THAN WHAT YOU WOULD GET IN A NORMAL HOTEL.
UM, SO THAT'S, THAT'S NOTHING OUTTA THE ORDINARY TO SEE SOME OF THOSE OCCUPANCY LEVELS LOW ON THAT BOTTOM CHART THERE.
UH, BUT THAT'S, THAT'S REAL TYPICAL.
BUT, YOU KNOW, YOU'VE GOT A NUMBER OF THESE PROPERTIES AND YOU'VE GOT SOME DEMAND GENERATORS WITH SOME OF YOUR LEISURE TRAVEL RELATED TO FIRST AND FOREMOST THE, THE WEDDING VENUES.
BUT THEN YOU'VE GOT CORPORATE AND COMMERCIAL BUSINESS TOO THAT WOULD WANT TO BE HERE.
AND, AND SO, YOU KNOW, OUR UNDERSTANDING OF THESE DEMAND GENERATORS AND WHERE THEY'RE CURRENTLY HAVING TO GO FOR HOTELS INFORMS OUR ANALYSIS AND THEN THE PROJECTIONS AND THE CONCLUSIONS THAT, THAT WE, THAT WE TAKE FROM THAT.
SO WE, WE, FOR HOTEL STUDIES, YOU ALWAYS, UH, YOU KNOW, YOU ALWAYS DERIVE A IDENTIFY AND DERIVE A COMPETITIVE HOTEL SET BECAUSE LOOKING AT THOSE HISTORICAL PERFORMANCE FIGURES FOR THOSE TYPE OF PROPERTIES THAT ARE NEARBY AND THE LIKE, VARIETY OF HOTEL PROJECTS IS VERY IMPORTANT FOR ANY HOTEL STUDY.
'CAUSE IT KIND OF FORMS A FOUNDATION, YOU KNOW, OF, OF THE DATA SET THAT WE CAN USE TO PROJECT FORWARD FOR THIS COMPETITIVE SET.
AND THEN HOW A NEW HOTEL WOULD BE FED FIT INTO THAT AND WHAT IMPACT THAT HAS WITH THE OVERALL, YOU KNOW, BY, BY DROPPING IN A NEW HOTEL PROJECT.
AND SO THESE ARE THE PROPERTIES THAT THAT LINED UP, YOU KNOW, WITH SOME OF THE CLOSEST PROPERTIES.
AND MANY OF THEM ARE IN DENTON, AS YOU CAN SEE, GAINESVILLE LAKE, DALLAS, SANGER, UH, CORINTH, YOU KNOW, YOU'VE GOT, YOU'VE GOT SOME OF THOSE KIND OF HOTEL PROPERTIES, BUT YOU, WHEN YOU LOOK AT THE NUMBER OF GUEST ROOMS IN THAT THIRD COLUMN OVER, YOU SEE THAT, YOU KNOW, RANGE FROM ABOUT ONE 30, YOU KNOW, DOWN TO DOWN TO 50 OR SO.
AND SO, SO THAT'S KIND OF THE TYPE OF SIZE THAT, THAT WE'D BE THINKING ABOUT.
USUALLY YOU WOULD FOR MODERN BRAND NEW BUILD, UPSCALE OR UPPER MIDSCALE TYPE PROPERTIES, AND AGAIN, ALL OF THESE FIT THAT BILL IN TERMS OF THE HOTEL CLASS.
THEY ARE, YOU KNOW, MODERN ONES.
YOU'RE USUALLY, IF YOU WANT TO, IF YOU WANT, REALLY WANNA MAXIMIZE YOUR FINANCIAL PERFORMANCE, YOU'D BE THINKING ABOUT A PROJECT OF AT LEAST A HUNDRED KEYS OR A HUNDRED ROOMS AND THEN YOU COULD GO UP AND USUALLY YOU DON'T SEE MANY OF THESE KIND OF PROPERTIES MORE THAN 200 ROOMS. AND SO THAT'S PROVIDING A LITTLE BIT OF CONTEXT IN TERMS OF THE SIZING OF, OF, OF THE TYPE OF HOTEL PROJECT THAT WE'RE TALKING ABOUT.
NOW, THE GREAT BENEFIT OF DOING A HOTEL STUDY IN TEXAS IS NOT ONLY DO WE HAVE THE NATIONAL DATA, UH, RESOURCE, WHICH IS COSTAR, FORMERLY SMITH TRAVEL RESEARCH STR.
NOW COSTAR IS THE MAIN PLATFORM WHERE WE GET ALL THIS NATIONAL DATA, UM, BUT YOU'RE NOT ABLE TO DRILL DOWN INTO INDIVIDUAL PROPERTY.
YOU HAVE TO PICK YOUR COMPETITIVE SET AND THEN YOU GET AGGREGATED HISTORICAL AND FUTURE PROJECTIONS BY VIRTUE OF THAT.
BUT IN TEXAS YOU'VE GOT SOURCE STRATEGIES AND YOU'VE GOT TEXAS STATE LAW, WHICH MANDATES THAT HOTELIERS REPORT, YOU KNOW, ON A REGULAR BASIS THEIR PERFORMANCE OF THEIR HOTELS AND THEIR TAX RECEIPTS AND THEIR REVENUES.
SO SOURCE STRATEGIES ALLOWS US TO DRILL DOWN TO EACH ONE OF THESE COMPETITIVE SET PROPERTIES AND LOOK AT WHAT'S THE A DR BY YEAR OR BY MONTH, WHAT'S THE OCCUPANCY? AND, AND SO IT'S VERY HELPFUL AND VERY USEFUL WHENEVER WE'RE DOING A STUDY IN, IN TEXAS MARKETS.
'CAUSE WE'RE ABLE TO REALLY GET INTO GRANULAR DETAIL TO LOOK AT HOW VERY SIMILAR LIKE, UH, FACILITY PROJECTS ARE PERFORMING.
SO WHEN YOU'RE LOOKING AT SOME OF THESE NUMBERS, YOU KNOW, YOU, YOU, YOU KNOW, USUALLY YOU, YOU CONSIDER LIKE A INDUSTRY AVERAGE, YOU KNOW, TARGET FOR OCCUPANCY IS NORMALLY 70% FOR A HOTEL OF ANY TYPE.
UM, YOU'LL SEE SOME OF THESE ARE
[00:20:01]
EXCEEDING 70%, SOME OF THEM ARE LESS THAN THAT.FOR A DR FOR THIS TYPE OF PROPERTY IS, IS MORE OR LESS SIMILAR TO WHAT WE SHOWED IN THE PREVIOUS SLIDE.
AND SO THERE, THERE AREN'T ANY BIG, UH, BIG SURPRISES WITH REGARD TO THIS INDIVIDUAL DATA CONSIDERING THIS COMPETITIVE SET.
AND THEN WE LOOK AT THAT COMPETITIVE SET AND WE, AND WE SAY, OKAY, HOW DOES BUSINESS VARY IN THE DEMAND WITHIN THEIR PROPERTIES BY DAY OF WEEK? AND SO THIS IS A WAY TO LOOK AT THAT.
SO ON THE LEFT HAND SIDE, WHEN YOU'RE LOOKING AT ANYTHING THAT'S IN THE YELLOW THAT IS EXCEEDING WHAT A TARGET MAXIMUM OCCUPANCY OF THAT 70% OR 75% WOULD BE.
AND THEN WHEN YOU SEE THE RED, THAT IS BASICALLY INDICATING THAT, THAT THOSE HOTELS, ESPECIALLY ON FRIDAY AND SATURDAY WITHIN THAT COMPETITIVE SET ARE TURNING AWAY BUSINESS.
THEY'RE JUST, THEY'RE ACHIEVING PRACTICAL MAXIMUM CAPACITY WITH REGARD TO THEIR BUSINESS.
AND WHEN I DO THIS TYPE OF ANALYSIS FOR STUDIES IN OTHER MARKETS, IT'S VERY, I WOULD SAY IT'S PRETTY RARE TO SEE THIS MUCH RED ON ONE CHART.
AND SO I THINK THAT IN YOUR CASE, THAT SHOULD BE THOUGHT OF AS A VERY POSITIVE ASPECT OF THIS.
MEANING THERE IS PENT UP UN UNMET, UN ACCOMMODATED DEMAND FOR A HOTEL PROJECT.
NOW OBVIOUSLY GIVEN HOW YOU'RE GONNA BE FURTHER NORTH AND MORE REMOVED FROM A LOT OF THESE CLUSTERS OF HOTEL PROJECTS, WE HAVE TO ADD SOME ADDITIONAL LAYERS INTO THE ANALYSIS TO BE CONSERVATIVE AND TO MAKE SURE THAT WE'RE NOT BEING TOO AGGRESSIVE IN THE EARLY YEARS IN TERMS OF WHAT THE HO HOTEL COULD DO.
BUT ALL THIS INFORMATION IS REALLY HELPFUL THAT HELPS DRIVE US TOWARDS OUR RECOMMENDATIONS AND HERE'S THE TYPE OF PRODUCT THAT WE'RE RECOMMENDING.
SO THOSE IMAGES IN THE LOWER LEFT ARE JUST PART OF OUR, THOSE ARE FOUR OF OUR COMPETITIVE SET AND THEY'RE JUST, TO ME AT LEAST SHOWN AN EXAMPLE TO YOU OF THE TYPE OF PRODUCT THAT WE'D BE TALKING ABOUT.
YOU KNOW, SO YOU'VE GOT THE COURTYARD, THE RESIDENCE, A COUPLE DIFFERENT PROTOTYPES WITHIN THE FAIRFIELD BRAND.
AND SO, YOU KNOW, THESE TYPES OF FACILITY PROJECTS IS REALLY WHAT WE'RE TALKING ABOUT.
I THINK, YOU KNOW, FOR THE RECOMMENDATION FOR AUBREY, TECHNICALLY WHAT THEY'RE CALLED A SELECT FOCUS SERVICE TYPE OF, UM, PRODUCT MEANING, YOU KNOW, IF YOU THINK ABOUT GOING INTO A COURTYARD BY MARRIOTT OR HILTON GARDEN, YOU'LL SEE THAT CAFE AND YOU CAN SEE LIKE THAT SOME OF THE FOOD BEVERAGE OPTIONS THEY'VE GOT, THAT USUALLY IS THE WAY YOU DISTINGUISH BETWEEN A LIMITED SERVICE AND A SELECT FOCUS SERVICE.
AND THEN AGAIN, WITHIN THE UPSCALE OR THE UPPER MIDSCALE CHAIN NATIONALLY BRANDED, UM, WOULD BE VERY IMPORTANT.
YOU KNOW, THE THEORY IS IN TERMS OF THE BEST LOCATION.
NOW IF YOU'RE INCENTIVIZING A SMALL PIECE OF THE OVERALL PROJECT BUDGET FOR A HOTEL LIKE THIS WHERE THE PRIVATE PARTNER IS FUNDING MOST OF IT, YOU KNOW, UM, IT'S ONE THING TO SAY, WELL, WE WOULD LIKE AS A CITY TO SEE IT PUT HERE.
BUT IF YOU'VE GOT A WILLING PARTNER AND THEY'VE GOT A DIFFERENT IDEA OF WHERE TO PUT IT, YOU KNOW, OFTENTIMES YOU WOULD HAVE TO DEFER TO THEM 'CAUSE THEY'RE BRINGING IN THE LION'S SHARE OF THE MONEY IF YOU WANT TO GET THAT HOTEL PRODUCT.
BUT ON THE OTHER END, THERE'S DIFFERENT WAYS TO DO THAT.
BUT WE'RE SUGGESTING THAT, YOU KNOW, TYPICALLY THE MOST ATTRACTIVE LOCATION WOULD BE FOR A LOCATION THAT COULD REALLY TAP INTO AS MUCH OF THE EXISTING AND THE EMERGING GROWTH OF THE AREA.
SO THAT WOULD REALLY SUGGEST THE SOUTHERN LOCATION, YOU KNOW, AUBREY OR EVEN THE EETJ TO BE ABLE TO DO THAT.
UM, ALSO HAVING SOME ROADWAY ACCESSIBILITY OR INVISIBILITY, YOU KNOW, OFF SOME MAJOR ROADWAYS WOULD, WOULD BE GOOD.
UM, YOU KNOW, WE'VE GOT THIS HO THIS SPORTS STUDY AS WELL, AND SO THINKING ABOUT BOTH OF THOSE, YOU CAN KIND OF CREATE SYNERGY BY HAVING THOSE CO-LOCATED.
UM, AND WITH THE SPORTS FACILITY, YOU KNOW, A COLAC CO-LOCATION ISSUE COULD EVEN BE, UH, UM, INCREASED IF YOU, IF YOU LOCATE IT NEXT TO THE OUTDOOR SPORTS COMPLEX AT YOUR BUILDING.
YOU KNOW, SO IF YOU'VE GOT, GOT THESE ELEMENTS AND THESE PRODUCTIVE ASSETS ALL PUT TOGETHER, YOU KNOW, THE SUM OF ALL THEIR PARTS IS GREATER, YOU KNOW, THAN EACH OF THEM INDIVIDUALLY.
SO, UM, SOME THINGS TO THINK ABOUT WITH REGARD TO THAT.
WE'RE RECOMMENDING 130 ROOMS OR 130 KEYS.
UM, WE'RE LOOKING AT NO, ABOUT TWO, ABOUT TWO ACRES OR SO FOR THE ENTIRE PROJECT.
YOU KNOW, THESE PROJECTS AREN'T THAT BIG.
UM, YOU KNOW, PARKING USUALLY IS ONE PARKING PLACE PER GUEST ROOM PLUS SOME OF THE ADMIN SPACE, SO ANOTHER 15 SPACES OR SO.
AND USUALLY JUST SURFACE PARKING, UH, OBVIOUSLY IN YOUR CASE WOULD BE, WOULD BE THE MOST APPROPRIATE AND THE COST EFFECTIVE TO DO SOMETHING LIKE THAT.
DOES ANYBODY HAVE ANY QUESTIONS BEFORE I GET GOING TOO MUCH MORE? I HAVE SEVERAL
UM, ONE OF THE CONCERNS I THINK RESIDENTS MIGHT HAVE IS IF YOU LOOK AT THE ADRS OF THE HOTELS AND YOU'RE SET 80 TO $90, RIGHT? SO REVPAR'S WHATEVER, 60 OR 70, UM, ON THE AIRBNB YOU SHOWED THAT THE A THE ADRS WAS ABOUT 2 10, 2 20, RIGHT? SO
[00:25:01]
I THINK ONE CONCERN MIGHT BE WOULD PUTTING A HOTEL THAT DOES 80 TO $90 ROOM RATES CANNIBALIZE THE B AND BS OR THE WEDDING VENUES THAT ARE DOING TWO 20 OR ARE, YOU KNOW, I MEAN JUST WHAT, WHAT ARE YOUR THOUGHTS ON THAT? BECAUSE I, I DEFINITELY THINK THAT A LOT OF PEOPLE WOULD THAT KIND OF UNDERSTAND WHAT'S GOING ON WITH LOOK AT THAT PARTICULARLY AND SAY, WOW, THAT MIGHT CAUSE A PROBLEM.WHAT DO YOU THINK ABOUT THAT? YEAH, THAT'S A REALLY GOOD QUESTION.
UM, YOU KNOW, THE GOOD NEWS IS, IS THOSE TWO SETS OF PROJECTS ARE SIGNIFICANTLY DIFFERENTIATED FROM ONE ANOTHER.
AND SO IT WOULD BE DIFFERENT IF YOU HAD A COUPLE HOTELS THAT LET'S SAY WERE ONE CLASS LOWER THAN WHAT YOU'RE TRYING TO BUILD.
THERE'D BE A LOT MORE CROSSOVER WITH RESPECT TO THAT, ESPECIALLY WITH NATIONALLY BRANDED PROJECTS WHERE PRODUCTS WHERE YOU'VE GOT, YOU KNOW, LOYALTY PROGRAMS, YOU KNOW, THE MARRIOTT BONVOY SYSTEM OR THE HILTON OR THE HYATT OR, OR YOU KNOW, SOME OF THOSE LIKE THAT.
BUT WHAT WE NORMALLY SEE WITH, WITH THE TRAVEL, RENT, VACATION RENTALS, THE AIRBNB TYPE PROPERTIES, IS THEY'RE DIFFERENTIATED ENOUGH AND JUST, YOU KNOW, FOR BOTH PRICE AND THE TYPE OF PRODUCT, UH, THAT, YOU KNOW, YOU CAN'T REALLY DO ROOM BLOCKS, YOU KNOW, IN THAT, YOU KNOW, LIKE YOU WOULD FOR A GROUP PIECE OF BUSINESS AT A HOTEL.
SO THERE'S LOTS OF DIFFERENTIATION.
I'LL JUST GIVE YOU AN EXAMPLE.
WHEN I CAME INTO TOWN FOR THE KICKOFF VISIT A FEW MONTHS AGO, CHRISTINE VERY NICELY RECOMMENDED, HERE'S AN AIRBNB THAT'S RIGHT ACROSS THE STREET.
I CHECKED INTO THE PRICE AND THE PRICE WAS 300 OR 400 BUCKS A NIGHT.
AND SO I SAID, I DON'T FEEL RIGHT ABOUT THAT
THERE ARE PROBABLY A LOT OF PEOPLE DOING THAT.
ESPECIALLY IN THE COMMERCIAL SIDE.
YOU KNOW WHAT I MEAN? SO, SO, SO, SO I REALLY DON'T THINK THAT IT'S, IT'S AS MUCH, UM, UM, OF A CANNIBALIZATION ISSUE, UH, AS, AS YOU MIGHT ANTICIPATE WITH, WITH REGARD TO THAT.
AND FRANKLY, THE MORE DIVERSIFIED YOU HAVE IN TERMS OF HOSPITALITY PRODUCT OFFERINGS, THE MORE COMPLETE COMMUNITY YOU'RE GONNA BE AND THE MORE APPEALING YOU'RE GONNA BE RIGHT OFF THE BAT.
SO I UNDERSTAND YOUR CONCERN, BUT THAT'S USUALLY IS NOT NECESSARILY A REAL SIGNIFICANT ISSUE IN MY OPINION.
UM, THE SECOND ONE WAS 130 ROOMS IS ABOUT 40 TO 50% MORE THAN THAT NUMBER OF ROOMS IN THE SET.
THEY'RE ALL LIKE 80 TO 90 OR 70.
UM, SO ONE SINCE WE'RE FARTHER AWAY FROM THE DEMAND IN DENTON, AND I WOULD ALSO ASSUME THAT A LOT OF THAT WEEKEND GREEN IN DENTON IS BECAUSE THEY PLAY FOOTBALL ON WEEKENDS AND THEY HAVE BASKETBALL, YOU KNOW, SO THE, IT'S COLLEGE SPORTS DRIVEN.
I'M SURE THAT'S DECENT PART OF THE OCCUPANCY.
SO WHAT MADE YOU THINK THAT PUTTING A, RECOMMENDING OR THINKING THAT A, YOU KNOW, A 50% LARGER BY ROOM BUILDING HERE MAKES SENSE RELATIVE TO THE OTHER PLACES THAT WOULD SEEM TO HAVE MORE DIRECT DEMAND AND THEN ARE SMALLER? YEAH, YEAH.
UM, SO 130 IS, IN MY MIND IS, IS IS A TYPE OF MINIMUM THRESHOLD FOR A PRODUCT, PARTICULARLY IF YOU'RE GONNA HAVE TO, EVEN WITH A HUNDRED ROOM PROPERTY OR A 50 ROOM PROPERTY, IF THE PUBLIC SIDE HAS TO PUT IN AN INCENTIVE, YOU KNOW, WHAT'S GONNA HAPPEN IS, YOU KNOW, IT'S KIND OF COUNTERINTUITIVE.
THE INCENTIVE THAT MIGHT BE REQUIRED MAY ACTUALLY BE LOWER.
AND, AND WHEN WE STARTED TO TEST THIS, WE DID FIND THAT THE SWEET SPOT WAS ABOUT 130 BECAUSE YOUR, YOUR BUILDING IS JUST MORE EFFICIENT.
YOU KNOW, THE MORE ROOMS YOU GET MM-HMM
THAT'S WHY FULL SERVICE PROPERTIES, YOU KNOW, YOU NEVER SEE THEM DROP REALLY BELOW 200 ROOMS BECAUSE OF THE ECONOMIES OF SCALE AND THE SYNERGY WITH ALL THAT STUFF RELATED TO THEIR CONFERENCE SPACE AND THEIR ROOM SERVICE AND THEIR RESTAURANT, YOU KIND OF NEED THAT MINIMUM THRESHOLD.
ONE 30 IS ONE OF THOSE NUMBERS THAT I'VE SEEN WITH RESPECT TO THESE KIND OF PROJECTS, UM, FOR A PROJECT THAT WOULD REQUIRE A P THREE.
SO FOR INSTANCE, SINCE YOU DON'T HAVE ANY TRADITIONAL NATIONALLY BRANDED HOTELS IN AUBREY, THAT TELLS ME RIGHT OFF THE BAT BEFORE RUNNING ANY NUMBERS, IS THAT THERE'S A GAP THAT'S PREVENTING THE PRIVATE SECTOR FROM EXECUTING A PROJECT A HUNDRED PERCENT ON ITS OWN.
AND SO THERE IS THIS INCENTIVE.
AND SO AT, AT, YOU KNOW, WHEN WE TESTED, WE TESTED 150 ROOM PROPERTY AND WE TESTED 110 ROOM PROPERTY, AND THE INCENTIVE AND THE FINANCIAL PERFORMANCE AND THE ABILITY TO MAIN SUSTAIN INDUSTRY APPROPRIATE OCCUPANCY LEVELS WAS BEST AT ONE 30.
AND SO THAT'S KIND, IT IS HARD TO EXPLAIN A LOT OF THE DETAIL.
BUT THAT'S, THAT'S KIND OF THE GIST OF IT.
UH, THIRD QUESTION IS, UM, SINCE THERE'S NOT A LOT OF DEMAND DRIVERS THAT EXIST TODAY IN TERMS OF EXTRA SPORTS COMPLEXES OR FACTORIES OR WHATEVER, UM, ONE, HOW MUCH OF THIS IS IF YOU BUILD IT, THEY WILL COME, AND HOW MUCH OF IT IS, IF YOU BUILD IT NOW, WE AS A CITY
[00:30:01]
CAN HAVE A INCENTIVE TO, YOU KNOW, SO HOW MUCH CAN DEMAND CAN WE CREATE THAT WE CAN'T CREATE NOW BECAUSE THERE IS NO HEALTH TOE? I GUESS THAT'S THE WAY TO, TO LOOK AT IT AS, YOU KNOW, AS OPPOSED TO JUST THE NATURAL WHATEVER'S GONNA HAPPEN.WELL PART OF THIS IS, YOU KNOW, IF YOU THINK OF THESE TWO STUDIES OR THESE TWO PROJECTS COLLECTIVELY, AND YOU THINK ABOUT IT, YOU KNOW, MY RECOMMENDATION IS THINK ABOUT DOING BOTH OF THESE, OR DON'T THINK ABOUT DOING EITHER OF THEM.
YOU KNOW, IT IS KIND OF ONE OF THOSE THINGS BECAUSE THEY CAN BE SYNERGISTIC WITH EACH OTHER.
HONESTLY, THE DEMAND GENERATED BY VIRTUE OF AN AMATEUR SPORTS COMPLEX, LIKE A COURT BASE FACILITY, WHICH I'LL GET TO IN A SECOND, YOU KNOW, THERE'S LOTS OF ROOM NIGHTS AND LOTS OF, UH, LOTS OF, OF, YOU KNOW, NEW HOTEL ROOM NIGHT DEMAND THAT COULD BE GENERATED JUST BY THAT.
AND THEN YOU COBBLE THAT TOGETHER WITH THE WEDDING VENUE BUSINESS THAT WE COULD, YOU KNOW, UH, BETTER ACCOMMODATE, UH, IN THE COMMUNITY AND THE COMMERCIAL BUSINESS.
YOU KNOW, LIKE WITH ANY HOTEL, THERE'S ALWAYS A RAMP UP HERE.
SO JUST AS AN EXAMPLE, I CAN JUST FIRE RIGHT TO THE, SOME OF THE PROJECTIONS TO KIND OF TALK TO YOU ABOUT THIS.
SO WHEN YOU LOOK AT THIS CHART, THIS IS THE PROJECTED MARKET PERFORMANCE RELATIVE OR COMPARED TO THE COMPETITIVE SET FOR THE NEW HOTEL OF 130 KEYS.
SO WHENEVER YOU SEE THE LIGHT BLUE COLOR, THAT IS THE PROJECTIONS FOR A NEW AUBREY HOTEL.
THE DARK BLUE IS THE COMPETITIVE SET LEVEL.
SO WHEN YOU SAY PEN RATE, THAT'S PENETRATION RATE.
SO WHAT THAT MEANS IS HOW ARE OUR LEVELS AT THE SUBJECT HOTEL PROPERTY RELATIVE TO THE COMPETITIVE SET? AND SO ONCE YOU GET TO A HUNDRED, YOU'RE MATCHING THE COMPETITIVE SET.
IF YOU'RE ABOVE A HUNDRED PERCENT, YOU'RE EXCEEDING THE COMPETITIVE SET.
SO AS YOU CAN SEE THESE NUMBERS WITH THE RAMP UP PERIOD FOR THE SUBJECT HOTEL, YOU KNOW, AN OCCUPANCY, YOU'RE STARTING, UH, YOU KNOW, 82% OF WHAT THE COMPETITIVE SET IS.
AND THEN YOU'RE GROWING AS YOU'RE, AS YOU'RE BUILDING UP THE A DR, WE'VE GOT THE BRAND NEW PROJECT IN TOWN.
SO RELATIVE TO THE AGE OF A LOT OF THESE OTHER PROPERTIES, WE FEEL THAT, THAT, YOU KNOW, THERE ARE PIECES OF BUSINESS THAT WOULD PAY TOP DOLLAR TO GET AN IN TOWN AUBREY HOTEL PRODUCT.
SO THAT INFLUENCES THE AVERAGE ON A ROLLING BASIS.
AND ALSO YOU'RE GONNA HAVE A BRAND NEW MOUSETRAP, A BRAND NEW HOTEL PRODUCT.
AND SO RELATIVE TO SOME OF THESE OTHER HIGHLY COMPETITIVE HOTELS DOWN IN THE DENTON AREA AND ELSEWHERE, YOU KNOW, YOU, YOU SHOULD BE ABLE TO COMMAND, YOU KNOW, AT OR ABOVE EVEN WITH YOUR LOCATION IN AUBREY, UH, OF THAT PARTICULAR RATE.
AND SO WHEN YOU MULTIPLY OCCUPANCY TIMES A DR TOGETHER, YOU GET REVPAR REVENUE PER AVAILABLE ROOM.
AND SO THOSE NUMBERS ARE A LOT OF THE ONES THAT ARE THE, THE, BASICALLY THE INDICATORS OF HOW WELL THE CASH FLOWS COULD SUPPORT WHAT THE PROJECT COSTS.
AND THAT'S, THAT'S WHAT GETS AT ARE WE OFF, YOU KNOW, IS IS THAT THE RETURN ON INVESTMENT THAT THE PRIVATE EQUITY AND THE PRIVATE DEBT IS BRINGING TO THE TABLE ENOUGH TO PAY OFF THE LOANS AND DELIVER A RETURN ON INVESTMENT TO THE INVESTORS.
AND SO WHEN YOU HAVE A GAP, THOSE NUMBERS DON'T MATCH UP.
AND SO THAT'S, THAT'S WHAT WE WERE DRIVING THROUGH TO LOOK AT THIS, YOU KNOW, SO JUST GETTING TO THIS NEXT SLIDE, THE PROJECTION OF YOUR FINANCIAL PERFORMANCE, UH, OF THIS HOTEL.
WE'RE TALKING ABOUT EBITDA, WHICH IS BASICALLY NET OPERATING INCOME.
NOI AT THE BOTTOM, YOU KNOW, ONCE YOU'RE RAMPING UP FOR ABOUT 1.5, 1.6 IN YEAR ONE, AND THEN GETTING UP TO 2.2.
NOW THESE NUMBERS RELATIVE TO THIS TYPE OF THE AVERAGES FOR THIS TYPE OF SIZE HOTEL AND THIS TYPE OF QUAL, UH, PRODUCT HOTEL, ARE A LITTLE BIT LOWER THAN WHAT WE WOULD SEE IN OTHER MARKETS.
AND THAT'S PART OF WHAT WHAT THIS ANALYSIS IS SHOWING IS YOU'VE GOT A FEASIBILITY GAP, YOUR FINANCIAL PERFORMANCE, YOU'RE STILL GENERATING A PROFITABLE PROJECT, YOU KNOW THAT THAT'S A NICE BENEFIT OF THESE HOTEL PROJECTS.
THAT'S WHY THE PRIVATE SIDE WANTS TO THROW SO MANY, SO MUCH MONEY AT THEM RELATIVE TO A PROJECT LIKE A INDOOR AMATEUR SPORTS FACILITY, WHICH THE CASH FLOWS OF THAT FACILITY, IF IT DOES CASH FLOW, EVEN USUALLY AREN'T ENOUGH TO PAY OFF DEBT SERVICE
THAT'S WHY THE PUBLIC HAS TO KIND OF TAKE THE LEAD IN THAT.
SO, SO WHEN YOU'RE LOOKING AT THESE NUMBERS, SO THEN YOU TAKE $2.2 MILLION IN, IN YEAR FIVE, YOU PROJECT THAT OUT AND YOU SAY HOW MUCH, YOU KNOW, WHAT DOES THAT SUGGEST, YOU KNOW, IN TERMS OF WHAT THE GAP IS OR WHAT THE, WHAT THE CITY MIGHT HAVE TO BRING TO THE TABLE.
SO THAT'S WHAT ALL THIS STUFF OF THE RIGHT SHOWS YOU.
SO WHEN YOU'RE LOOKING AT THE MIDRANGE COLUMN AT THE TOP THERE, YOU'LL LOOK DOWN AND THAT'S WHAT WE'RE ESTIMATING WHAT THE CONS, THE DEVELOPMENT COSTS OR THE PROJECT COSTS WOULD BE $268,000 PER KEY OR PER ROOM AND ABOUT A $35 MILLION HOTEL PROJECT.
YOU'VE NOTED HERE THAT AS PART OF THIS P THREE, SINCE WE KNOW WE HAVE AN INCENTIVE THAT WOULD BE REQUIRED TO MAKE THIS HAPPEN, THAT ONE OF THE LOWEST HANGING FRUITS IN TERMS OF, UH, PUBLIC INCENTIVE IS LIKE DONATION OF LAND.
AND SO FOR PURPOSES OF THIS ANALYSIS, WE DID INCLUDE THAT.
SO YOU'LL SEE THAT SECOND LINE
[00:35:01]
UP THERE IS ALL ZEROED OUT.WE DON'T HAVE A SITE, WE DON'T KNOW WHAT, WHAT, WHAT SITE EVERYBODY WOULD BE COMFORTABLE WITH, BUT THE THEORY WOULD BE IS THAT WOULD BE A REAL EASY INCENTIVE TO PROVIDE, IS TO COVER THE LAND FOR THIS PRIVATE PARTY.
AND THEN WE LOOK DOWN IN THE MIDDLE GOING ALL THE WAY TO THE BOTTOM OF THE PAGE.
WHEN YOU LOOK AT THE ACTUAL CALCULATION OF THE FEASIBILITY GAP BASED ON THE VALUATION OF THE CASH FLOWS, YOU LOOK AT A CAP CAP RATE, AND THEN YOU GOT A CONSTRUCTION COST, AND THEN YOU LAND ON HOW FAR OFF ARE WE TO REALLY GET THE PRIVATE SIDE INTERESTED WITH THIS TYPE OF A PROJECT.
AND IT SHOWS ABOUT $15 MILLION, $15 MILLION UNDER A MID CASE.
NOW, I'VE ALWAYS BEEN SURPRISED BECAUSE I'VE HELPED CLIENTS AFTER THE FEASIBILITY STUDY BY WRITING THE RP FOR THE DEVELOPMENT ON BEHALF OF THE, THE CITY OR THE COUNTY.
AND AS A PART OF THAT, YOU KNOW, YOU'RE WRITING IN THEIR, YOU KNOW, WHAT THE OBJECTIVES ARE FOR THE CITY AND THE FACT THAT THEY UNDERSTAND IT'LL BE A P THREE, A PUBLIC-PRIVATE PARTNERSHIP.
AND YOU LIST A FEW OF THE TOOLS THAT YOU MAY CONSIDER.
YOU'RE NOT COMMITTING TO ANYTHING IN THE RP PROCESS, BUT YOU'RE SAYING HERE ARE SOME TOOLS THAT MAY BE AVAILABLE.
AND THOSE ARE SOME OF THE TOOLS OUT IN THE LEFT THAT WE NORMALLY SEE FOR PROJECTS LIKE THIS.
A DONATION OF LAND, THE CITY WILL HELP WITH INFRASTRUCTURE IMPROVEMENTS AROUND THE SITE.
MAYBE THERE'S PROPERTY TAX ABATEMENTS, MAYBE YOU CAN, UH, ABATE THE ACTUAL TAXES COLLECTED AT THE LOCAL LEVEL FOR THE ACTUAL HOTEL PROPERTY BACK TO THE CAPITAL BUDGET.
THERE'S LOTS OF DIFFERENT WAYS TO MAKE UP OR TO MEET THIS $15 MILLION, AND THESE ARE SOME OF THEM OFF TO THE LEFT.
BUT, BUT THAT'S, THAT'S OUR BEST ESTIMATE RIGHT NOW IN TERMS OF ANALYZING THIS PROJECT IN TERMS OF HOW FAR OFF YOU WOULD BE AND IN TERMS OF WHAT WOULD BE NEEDED TO BE ABLE TO, UH, TRACK THIS TYPE OF A HOTEL DEVELOPMENT.
SO WOULD THAT MEAN THAT, AND I GET IT, DIFFERENT CAP RATES EIGHT, EIGHT AND QUARTERS FAIR FOR ME, FROM THE WAY I LOOK AT IT, SO AM I READING THIS RIGHT, THAT OUT OF THE 35 MILLION IN DEVELOPMENTAL COSTS, THE DEVELOPER WOULD EXPECT 15 MILLION IN SOME COMBINATION OF ALL THIS EXCLUDING LAND? THAT'S OKAY.
AND, AND SO THAT'S, YOU KNOW, IT'S, IT'S A, IT'S NOT HALF THAT WOULD BE REQUIRED, BUT IT'S, IT'S STILL A NUMBER THAT, YOU KNOW, FOR SOME HOTEL PROJECTS THAT I'VE BEEN DOING THESE KIND OF ANALYSES FOR, SOMETIMES, YOU KNOW, THE, THE, THE PUBLIC INCENTIVE THAT'S REQUIRED IS SOMETHING LIKE 30 MILLION OR 40 MILLION OR 50 MILLION.
SO THIS NUMBER SEEMS PRETTY LARGE.
BUT WHAT THIS GETS YOU, OF COURSE, AND AGAIN, I'VE GOT NO INTEREST BEYOND DELIVERING YOU THIS INFORMATION, YOU KNOW, BEYOND THIS STUDY.
I'M NOT, I'M NOT IN INVOLVED WITH ANY HOTEL INVESTORS OR ANYTHING LIKE THAT.
BUT, UM, YOU KNOW, YOU'RE GETTING YOUR FIRST HOTEL PROJECT THAT CAN REALLY BE A PIVOT POINT FOR YOUR COMMUNITY TO LEVERAGE AND TO MANAGE THE GROWTH EFFECTIVELY IN TERMS OF CREATING MASTER PLAN DISTRICTS AND, AND THINKING ABOUT, YOU KNOW, WHERE, HOW WE CAN GET INVOLVED WITH THIS AND HOW WE CAN GET ON THE MAP FROM THE VISITOR INDUSTRY PERSPECTIVE AND THE TOURISM PERSPECTIVE, MORE SO BY HAVING A PROJECT LIKE THIS.
AND FURTHERMORE, IF YOU'RE THINKING ABOUT DOING THE SPORTS FACILITY PROJECT, THIS WOULD REALLY BE IMPORTANT TO BE ABLE TO HAVE THAT.
SO, SO FURTHERMORE FOR THE, FOR THE SPORTS FACILITY PROJECT, WE HAVE ASSUMED THAT EITHER THIS TYPE OF A HOTEL OR SOME OTHER HOTEL WOULD BE ARRIVING TO HELP SUPPORT SOME OF THE FACILITIES DEMAND OVER THE MIDTERM.
YOU KNOW, SO, SO THAT'S, THAT, THAT'S KIND OF AN IMPORTANT THING IN TERMS OF THAT.
NOW OVER TIME, YOU KNOW, YOUR QUESTION MIGHT BE, WHEN CAN WE JUST GET THIS HOTEL JUST BY VIRTUE OF NATIONAL GR UH, GROWTH WITHOUT THE CITY HAVING TO PARTICIPATE AT ALL? AND BASED ON ALL THE, THE, THE DATA THAT I'VE LOOKED AT, I WOULD SAY THAT IS PROBABLY AT LEAST A FEW YEARS AWAY, YOU KNOW, BEFORE YOU'D HAVE SOME KIND OF A PRODIGAL LIKE THIS THAT MIGHT JUMP INTO AUBREY WITHOUT THIS, BUT THIS INCENTIVE CAN BE YOUR WAY TO CONTROL YOUR DESTINY AND AND MANAGE KIND OF THAT DEVELOPMENT, UH, THAT'S NATURALLY GONNA OCCUR AFTER THAT.
BECAUSE WHAT'S GONNA HAPPEN IS ANOTHER HOTEL OF A NATIONAL BRAND, IF THIS THING IS BUILT AND OPEN AND SUCCESSFUL, JUST LIKE GAS STATIONS OR FAST FOOD RESTAURANTS, THEY'RE GONNA START CO-LOCATING SOMEWHERE AROUND THAT TOO.
AND SO THAT'S ANOTHER WAY TO KIND OF THINK FOR YOU AS A CITY TO THINK STRATEGICALLY ABOUT WHERE YOU'D LIKE SOME OF THIS TYPE OF, UM, BIG TICKET KIND OF, UH, INVESTMENT AND DEVELOPMENT TO BE OCCURRING AND USE 2030 IN THE EXAMPLE JUST AS A ROUND NUMBER FIVE YEARS AWAY, OR WHY, OR FOUR YEARS AWAY.
I MEAN, WHY, WHY DID YOU START IN 2030? DOES IT, 'CAUSE I CAN'T IMAGINE IT TAKES 18 MONTHS EVEN TO BUILD A HOTEL.
WELL, YOU KNOW, IN MY EXPERIENCE, WHEN YOU'VE GOT A P THREE FOR A HOTEL PROJECT LIKE THIS, IT, IT CAN BE ESPECIALLY WITH, YOU KNOW, WITH, WITH GOVERNMENT INVOLVED, IT CAN BE A LITTLE BIT DRAWN OUT.
YOU KNOW, I'VE DONE A NUMBER OF THESE WHERE I'VE DONE THIS STUDY, THE CITY COME BACK TO ME A FEW MONTHS LATER AND SAID, HELP US WRITE AN RP AND LET'S GET IT OUT TO THE HOTEL DEVELOPMENT INVESTOR COMMUNITY.
AND YOU START DOING THAT, AND THEN YOU'VE GOT, YOU KNOW, TWO MONTHS
[00:40:01]
FOR THEM TO TURN IN PROPOSALS AND THEN YOU GOTTA SHORT LIST AND YOU GOTTA INTERVIEW AND, AND THEN YOU GOTTA, YOU GOTTA DESIGN THE THING, YOU KNOW, SO IT'S, SO, SO YOU'RE THAT CITY COUNCILSO I, I COULD CERTAINLY PICK 2029, WE JUST RUN THE NUMBERS DIFFERENTLY OR A LATER YEAR, YOU KNOW, BUT THAT'S JUST ME JUST TRYING TO PICK A REASONABLE DATE THAT I THINK IS PROBABLY, YOU KNOW, REALISTIC.
WE ALWAYS LOOK AT IT CONSERVATIVELY.
SO, YOU KNOW, FOR BOTH OF THESE STUDIES, WE HAD AN ECONOMIC IMPACT.
ON THE LEFT HAND SIDE, THERE'S THIS INITIAL ROUND OF SPENDING.
ONE COMES FROM THE CONSTRUCTION, IT'S A FIXED PERIOD OF CONSTRUCTION.
SO IT'S A ONE-TIME SET OF IMPACTS.
THEN ONCE YOU'RE OPEN, YOU'VE GOT IN FACILITY SPENDING, MEANING IT'S REALLY THE REVENUES THAT ARE GENERATED INSIDE YOUR BUILDING.
SOME SUBSET OF THAT IS NET NEW TO AUBREY.
AND THEN YOU LOOK AT THE OUT OF FACILITY SPENDING.
SO WHEN YOU DRIVE, WHEN YOU ATTRACT PEOPLE TO THE COMMUNITY THAT WOULDN'T HAVE OTHERWISE BEEN IN AUBREY, THE AMOUNT OF DOLLARS THEY SPEND OUTSIDE THE BUILDING AND RESTAURANTS OR RETAIL AND, AND TRANSPORTATION OR, OR THINGS LIKE THAT, YOU KNOW, A SUBSET OF THAT IS GONNA BE NET NEW TO, TO AUBREY AS WELL.
SO WHEN YOU ADD ALL THOSE THREE TOGETHER, THEN YOU'VE GOT MULTIPLIER EFFECT, YOU'VE GOT ADDITIONAL ROUNDS OF SPENDING, SO YOU'VE GOT THE DIRECT SPENDING THAT, THAT DRIVES INDUCED SPENDING AND INDIRECT SPENDING, AND YOU ADD UP ALL THREE OF THOSE TOGETHER ON THAT RIGHT HAND SIDE THAT GIVES YOU ECONOMIC OUTPUT.
SO THAT, THAT TO ME IS, IS THE BEST REPRESENTATION OF ECONOMIC OUTPUT.
BUT AGAIN, YOU'VE GOT, YOU KNOW, JOBS CREATED, EMPLOYMENT SUPPORTED, PERSONAL INCOME GENERATED TAX REVENUES, YOU KNOW, UM, SUPPORTED ET CETERA WITH REGARD TO A PROJECT LIKE THIS.
SO WHEN WE RAN THE NUMBERS THROUGH OUR MODEL, THIS IS, YOU KNOW, WHAT WE'RE SHOWING JUST FOR THIS HOTEL PROJECT.
AND YOU KNOW, IN ALL MY STUDIES AROUND THE COUNTRY, A LOT OF TIMES I'LL DO A CONVENTION CENTER OR A CONFERENCE CENTER STUDY AND ALSO A HOTEL STUDY.
AND CLIENTS ARE INVARIABLY ARE ALWAYS SHOCKED THAT THE HOTEL GENERATES MORE ECONOMIC IMPACT THAN THE CON CONVENTION CENTER IN SOME CASES.
YOU KNOW, AND THE REASON FOR THAT IS YOU'VE GOT SO MANY BODIES FLOWING THROUGH THAT BUILDING, YOU KNOW, KIND OF BY DEFINITION THEY'RE ALL FROM OUT OF TOWN.
YOU KNOW, WE, WE TAKE A LOOK AT MAKING SURE THAT WE'RE NOT DOUBLE COUNTING STUFF THAT'S ALREADY BEING CAPTURED FROM A VISITOR STANDPOINT IN YOUR COMMUNITY.
SO WE MAKE REDUCTIONS TO THAT.
BUT EVEN IN YOUR CASE, WE'RE LOOKING AT, YOU KNOW, THE TOTAL ECONOMIC OUTPUT BY YEAR FIVE IS $14 MILLION PER YEAR OF NET NEW ECONOMIC DIRECT SPENDING AND DIRECT SPENDING AND INDUCED SPENDING GENERATED WITHIN AUBREY.
AND THEN YOU'VE GOT SOME OF THE TAX DOLLARS GENERATED IN YEAR 5, 420 $3,000 IN, UH, CITY TAXES, CITY SALES AND HOTEL TAXES GENERATED BY THAT.
THAT WOULD BE NET NEW TO AUBREY.
SO USUALLY THOSE ARE ALWAYS CONSIDERATIONS AND CONS, CONSIDERATIONS FOR PUBLIC SECTOR CLIENTS IN TERMS OF WHAT ARE WE GETTING FOR THIS, YOU KNOW, FROM A QUANTITATIVE STANDPOINT.
AND THAT WAS, THAT WAS REALLY THE LAST SLIDE WITH THE HOTEL AND I WANTED TO TRY TO SHIFT TO THE SPORTS.
ANY, ANY OTHER QUESTIONS ON THE HOTEL? SO TWO, UM, WELL FIRST OF ALL, ANYONE, ANYONE? KEEP GOING.
ONE, ASSUMING YOUR INDIRECT AND INDUCED SPENDING NUMBER IS CORRECT, AND THERE'S ALWAYS A DEBATE ABOUT HOW MUCH IS DISPLACED VERSUS NEW.
BUT I'LL GIVE YOU CREDIT THAT IT'S ALL NEW.
FOR SIMPLICITY SAKE, LET'S ASSUME, AGAIN, I'M JUST MAKING STUFF UP.
LET'S JUST ASSUME A $15 MILLION BOND, WE JUST SAID, YOU KNOW WHAT, WE'RE JUST GONNA ISSUE A BOND AND WE'RE GONNA GIVE YOU THE MONEY, RIGHT? MM-HMM
AND LET'S JUST ASSUME 5% THAT'S 600 GRAND A YEAR.
JUST AN INTEREST, NOT AN IZATION ON THE 15 MM-HMM
SO IN THEORY, WHAT THE CITY ALL OF US HERE SHOULD BE THINKING ABOUT IS EVEN NET OF ALL THE TOTAL CITY TAXES IN YEAR 10 ON OUR 15 YEAR BOND, WE'RE STILL NOT COVERING EVEN THE INTEREST EXPENSE, RIGHT? AM I, AM I, IS THAT A FAIR STATEMENT? I, I DON'T, I CAN'T REALLY RUN THAT AMORTIZATION IN MY HEAD.
ASSUME, LET'S JUST ASSUME THAT IT'S A 0:00 AM LET'S JUST SAY THERE'S A BALLOON AT THE END FOR 15 MILLION.
SO, SO OUR SERVICE DEBT SERVICE IS BASICALLY 600 MIL, 600,000 A YEAR, RIGHT? YEP.
SO JUST UNDER THAT VERY SIMPLE SCENARIO, THAT'S VERY NOT MAYBE REALISTIC.
IS THAT A FAIR STATEMENT IN MY HEAD? THE WAY I'M THINKING ABOUT IT? YEAH.
THE, THE WAY YOU'RE THINKING ABOUT IT IS, IS CORRECT.
AND IT'S, IT'S, IT'S SOMETHING THAT AGAIN, FOR PROJECTS LIKE THIS THAT REQUIRE PUBLIC SIDE ASSISTANCE TO MAKE THEM WORK, YOU KNOW, THIS IS NOT UNCOMMON TO SEE THAT THE ACTUAL LOCAL NET NEW TAX DOLLARS GENERATED BY VIRTUE OF THIS PROJECT TO EXACTLY MATCH UP IN THE DEBT SERVICE OR OTHERWISE YOU'D HAVE EVERY COMMUNITY IN THE COUNTRY DOING THIS KIND OF THING.
AND, AND, AND I'M NOT SAYING IT'S A BAD THING IN GENERAL, CONCEPTUALLY, I'M JUST SAYING THAT EVERYBODY NEEDS TO BE AWARE IF WE'RE MOVING FORWARD AND TALKING ABOUT IT, THAT THIS IS PROBABLY NOT GONNA BE
[00:45:01]
FROM JUST A PURE NUMBERS STANDPOINT, THAT WE DO HAVE TO THINK OF IT AS WELL.MAYBE IT'LL GENERATE SOME OTHER THINGS THAT ARE ON HERE.
LIKE, OH, NOW WE GET THE YEAH.
YOU KNOW, I MEAN, SO, SO THERE'S, THERE'S THINGS IN THE FUTURE THAT COULD MAKE THIS WORK BETTER.
BUT I DO THINK PEOPLE DO NEED TO UNDERSTAND THAT THIS ISN'T THE MAGIC BULLET THAT WOW, IT JUST GENERATES A TON OF MONEY FOR THE CITY AND WE'RE GONNA BE PROFITABLE ON THAT.
SO DOMINO NUMBER ONE DOESN'T HAVE A LOT OF DOTS.
LIKE I SAID, I'M NOT DISMISSING IT BECAUSE OF THAT, BUT I WOULD LIKE EVERYBODY TO DEBATE THAT 'CAUSE THE CITIZENS ARE GONNA DEBATE THAT.
YOU HAVE SECOND QUESTION? YEAH.
UM, AS FAR AS EMPLOYMENT, SO IT'S JUST A PROJECTION OF ABOUT, OH, THAT'S FOR CONSTRUCTION PERIOD ABOUT 208 AND THEN, SO HANGING OUT ABOUT 150 TO 200 FOR BRINGING JOBS, ESSENTIALLY.
AND IT'S, AGAIN, WE USE THE IMPLANT MULTIPLIER SET, AND SO IT'S, IT DOESN'T, IT DOESN'T DISTINGUISH BETWEEN FULL AND PART-TIME JOBS.
AND SO IT'S REALLY JUST A FORMULA BASED ON THE MULTIPLIER SPECIFIC TO DENTON COUNTY THAT WE U THAT WE FILTER THROUGH THE DIRECT SPENDING NUMBER THAT SAYS HERE IS THE NUMBER OF FULL AND PART-TIME JOBS SUPPORTED BY THIS ELEVATED LEVEL OF SPENDING, THE DIRECT, INDIRECT AND INDUCED SPENDING.
AND THEN BASED ON LIKE OUR RESIDENT TAPESTRY, YOU WOULD THINK THAT WHAT WE HAVE IN PLACE CURRENTLY COULD SUPPORT THE THE JOB NEEDS.
I MEAN IT'S, IT'S, IT'S ONE OF THOSE THINGS WHERE, YOU KNOW, IT, A NUMBER OF YOUR WORKERS MAY NOT LIVE IN AUBREY, YOU KNOW, AT, AT A HOTEL.
BUT I MEAN, THIS EMPLOYMENT NUMBER AS AN EXAMPLE, IS NOT JUST AT THE HOTEL ITSELF.
THIS IS THROUGHOUT THE ENTIRE CITY OF RE ECONOMY THROUGH VARIOUS INDUSTRIES, HOTEL, YOU KNOW, RESTAURANT ENTERTAINMENT, RETAIL, THOSE KIND OF THINGS LIKE THAT.
IN TERMS OF THAT, UM, YOU KNOW, IT IS ALWAYS DIFFICULT TO GIVE A REAL CLEAR ANSWER ON, ON THE, ON, ON THE EMPLOYMENT SIDE BECAUSE THE MULTIPLIERS DON'T PROVIDE A LOT OF CLARITY WITH REGARD TO THAT.
THEY JUST SAY, HERE'S THE OUTPUT OF THE MIX AND FULL AND PART-TIME JOBS THAT ALL THE SPENDING SUPPORTS ACROSS VARIOUS INDUSTRIES WITHIN YOUR GEOGRAPHIC AREA.
WHAT WAS YOUR SECOND QUESTION? UM, YOU WERE SAYING THAT
UH, BUT ATTACHING IT TO THE OTHER THING, PROBABLY NOT SO MUCH, BUT I MEAN, ALL TWO ACRES IS NICE.
RIGHT? BUT YOU, YOU SAID THAT JUST IN GENERAL, SAY THE SOUTHERN PART OF 3 77 IS A MORE LOGICAL PLACE FOR US TO BE THINKING IN THE FUTURE BECAUSE IT'S CLOSER TO THREE 80 AND EVERYTHING ELSE, AS OPPOSED TO BEING CLOSER TO PILOT POINT, JUST, YOU KNOW, AT A HIGH LEVEL THINKING ABOUT AVAILABLE ACREAGE POTENTIALLY, OR WHAT WE SHOULD DO.
SO YOU, YOU THINK THAT THAT'S WOULD BE THE OPINION OF SOMEONE THAT WOULD COME HERE JUST BASED ON YOUR STUDY? THAT'S THAT'S WHAT I WOULD, THAT'S THE DIRECTION I WOULD LEAN FOR, BUT YOU'RE NEVER GONNA KNOW UNTIL YOU TEST THE MARKET.
SO THAT'S WHY THE RP IS REALLY CRITICAL.
BUT WHAT, WHAT I'M SUGGESTING TO YOU IS IT'S LIKELY THAT THAT'S WHAT THE INTEREST IS GONNA BE.
AS A PART OPPOSED TO FURTHER NORTH OR CENTRAL IN AUBREY.
THEY'D LOVE TO BE A LITTLE BIT FURTHER SOUTH TO REALLY BE ABLE TO TAP INTO THAT TRANSIENT DEMAND COMING FROM THE GREATER, YOU KNOW, THE NORTHERN DENTON COUNTY.
BUT ON THE OTHER HAND, YOU KNOW, SO YOU REALLY, WHEN YOU GET TO THE POINT, SEE THE THEORY IS THIS IS A P THREE, SO YOU'LL BE ISSUING AN RP EITHER MDD OR THE CITY OR YOU KNOW, ANY OTHER PUBLIC ENTITY.
IT COULD BE DENTON COUNTY MAYBE, BUT IF THEY ISSUE IT, YOU HAVE TO DECIDE BEFORE YOU WRITE THAT RFP IS, ARE WE GONNA TRY TO DIRECT THE SITE LOCATION IN A SPECIFIC AREA BASED ON OUR OTHER OBJECTIVES WITH REGARD TO ECONOMIC DEVELOPMENT? OR ARE WE JUST TRYING TO FIND THE BEST OFFER BY A PRIVATE PARTY? MM-HMM
AND IF YOU WANT THE BEST OFFER, YOU JUST SAY, HERE ARE THE REQUIREMENTS, IT'S GOTTA BE IN THE CITY OF AUBREY, PERIOD.
IT'S GOTTA BE AT LEAST 130 KEYS AND IT'S GOTTA BE THIS TYPE OF HOTEL CLASS.
AND HERE ARE THE DIFFERENT TOOLS THAT WE WOULD CONSIDER FROM THE CITY PERSPECTIVE FOR A PROJECT THAT WE FEEL AS MERIT.
AND WE, WE COULD CONSIDER UTILIZING THESE AS OUR INCENTIVE TOOL.
NOW YOU TELL US WHERE DO YOU WANNA PUT IT, WHAT DO YOU WANT TO BUILD, HOW YOU WANT TO DO IT, HOW DO YOU WANNA STRUCTURE IT? SO THAT'S WHAT YOU'RE ASKING FOR.
BUT THERE'S DIFFERENT WAYS TO DO THAT.
THE RP LEVEL, YOU EITHER DEFINE THE SITE, DEFINE THE AREA, OR YOU JUST SAY, WE'VE GOT A FEW REQUIREMENTS, YOU TELL US WHERE YOU WANNA PUT IT, YOU KNOW, SOMETHING LIKE THAT.
AND ASSUME THE MORE RESTRICTIONS, LIKE IF WE SAID WE WOULD REALLY LIKE IT CLOSE TO DOWNTOWN, WE'D HAVE TO GIVE MORE INCENTIVE.
ANY OTHER QUESTION? I HAVE ANOTHER HALF QUESTION, SO THAT MAKES ONE TOTAL QUESTION
[00:50:01]
JUST WHILE WE'RE TALKING ABOUT THE GEOGRAPHY.SO RECOGNIZING WE'RE IN DEN DENTON COUNTY, THE CONGLOMERATE OF THE COMP SET IS DENTON, OBVIOUSLY.
WAS THERE ANY PART OF THE ANALYSIS OR DATA POINTS THAT, UM, ORIGINATED FROM COLLIN COUNTY, FROM THE PGA AREA OR FROM KIND OF THAT SUBSET OF HOW CAN WE WE'RE IN THE MIDDLE-ISH, DID THAT PULL OVER FROM THAT AREA? THESE ARE THE ONES THAT WE PICKED AND I, I, I GUESS I, I THINK THESE ARE ALL DENTON COUNTY, IS THAT CORRECT? MM-HMM
AND USUALLY, YOU KNOW, I DIDN'T, I DIDN'T SAY IN MY HEAD WHEN I WAS PICKING THESE, THIS COMPETITIVE SET BY SAYING WE WANT GET A REPRESENTATION OF, OF NEARBY COUNTIES.
I JUST SAID, LET'S FIND THE CLOSEST BEST ANALOGS TO WHAT WE THINK THAT THE DEMAND IS.
AND THIS IS WHERE IT KIND OF LAND LANDED.
SO, YOU KNOW, I, I'VE GOT THAT DATA.
I'VE LOOKED AT THE DATA FROM NE NEARBY COUNTIES, YOU KNOW, UH, I HAVEN'T DRILLED INTO IT THE WAY THAT I DID WITH THIS STUDY, BUT, UM, IF YOU'VE GOT ANY PARTICULAR MARKETS OR DIFFERENT AREAS OR SUBMARKETS THAT YOU'D LIKE US TO TAKE A LOOK AT, I'LL, I'LL HAVE TO JUST PRESS A BUTTON AND I CAN GET THAT OUTPUT.
SO I WOULD THINK THAT IT WOULD ENHANCE, IT WOULD FURTHER ENHANCE EVERYTHING THAT YOU'VE ILLUSTRATED.
JUST KNOWING THE INSTALLMENT COMING TO THE EAST AS WELL.
WE CAN CERTAINLY, WE CAN CERTAINLY LOOK AT THAT A LITTLE BIT FURTHER.
EVERYBODY READY TO MOVE ON THE SPORTS? GO FOR IT.
WE DOING OKAY IN TIME OR HOW MUCH? UM, IT'S 6 22
DO YOU WANT TO, YOU WANNA TRY, YOU WANNA TRY TO WRAP IT? YOU WANT JUST GET TO THE BOTTOM LINE WITH THE SPORTS FACILITY OR WHAT DO YOU THINK? I, I THINK JUST KEEP GOING.
UM, WE DID, IN ADDITION TO THE DEMOGRAPHIC DATA THAT LIKE WE DID FOR THE HOTEL STUDY, WE ALSO DID A SUB-MARKET ANALYSIS BECAUSE THE THEORY IS WITH THIS TYPE OF PROJECT, THIS WOULD BE A PUBLIC PROJECT LED BY THE PUBLIC SIDE HOTEL WOULD BE LED BY THE PRIVATE SIDE.
SO IT'S MORE OF WHAT THE PRIVATE PARTNER, WHERE THEY WANT TO GO, UH, YOU KNOW, IS, IS A FACTOR IN THIS AND WHAT THEIR INTERESTS WOULD BE FOR DIFFERENT SITES.
BUT FOR A PROJECT LIKE THIS, USUALLY WHAT WE LOOK AT IS DIFFERENT SUBMARKETS TO BE ABLE TO RUN DEMOGRAPHICS FOR.
SO WHAT WE TRIED TO DO IS LOOK AT SOME LOGICAL AREAS WITHIN THE CITY, BUT ALSO CONSIDER THE ETJ AND THINK ABOUT, YOU KNOW, EXISTING SPORTS FACILITIES OF SOME SORT.
AND THEN, YOU KNOW, MAYBE LOOK AT THE DEMOGRAPHICS TO SEE IF THERE'S VARIATION OF A SIGNIFICANT DEGREE THAT MIGHT, YOU KNOW, BETTER INFORM WHAT A LOGICAL LOCATION WOULD BE.
SO WE RAN THOSE NUMBERS, WE LOOKED AT POPULATION THE SAME TYPE OF THING, 15 MINUTES, 30 MINUTES, 60 MINUTES FOR THESE SIX DIFFERENT SUBDISTRICTS.
AND YOU KNOW, YOU'RE NOT FINDING A, YOU KNOW, YOU'RE FINDING SOME VARIATION, BUT ONCE YOU GET OUT TO 30 MINUTES, IT ALL IS RELATIVELY SIMILAR AND BEYOND.
SO IT'S, IT'S NOT ALL THAT DISTINCT, YOU KNOW, I'VE DONE THIS IN OTHER MARKETS THAT ARE LARGER GEOGRAPHIC AREAS WHERE IT'S, YOU KNOW, EVEN 60 MINUTE DRIVE, THERE'S 50% MORE POPULATION, SOMETHING LIKE THAT.
SO IT DOESN'T REALLY TELL US A WHOLE LOT IN TERMS OF AN ACTUAL SITE LOCATION.
WITH REGARD TO THIS, WE DID AN INVENTORY OF SOME OF YOUR LOCAL AREA SPORTS FACILITIES.
CHRISTINA AND I HAD A CONVERSATION YESTERDAY ABOUT, UM, THE THREE 80 YOUTH SPORTS FIELD.
UM, AND I LEFT SEVEN ON THERE BECAUSE WHEN YOU LOOK AT, YOU KNOW, GOOGLE MAPS AND YOU, YOU LOOK, YOU LOOK AT IT, YOU CAN ACTUALLY SEE THE FIELDS LINE FOR ONE LARGE, FULL-SIZE FIELD AND THEN A BUNCH OF SMALLER KITTY ONES.
THEY'VE GOT THE ABILITY WITHIN THAT PARCEL TO BE ABLE TO DO LOTS OF DIFFERENT MIXES OF DIFFERENT TYPES OF FIELDS.
SO I JUST WANTED TO BRING THAT TO YOUR ATTENTION IN PARTICULAR IN CASE THAT'S SEVEN NUMBER OF FIELDS DOESN'T MATCH WITH WHAT YOUR RECOLLECTION IS.
BUT YOU'VE GOT A NUMBER OF THESE FIELDS.
BUT IF YOU LOOK AT THE, THE, THE ORANGE, THAT'S THE INDOOR SPORTS FACILITIES, YOU KNOW, THEY'RE ALL SCHOOLS, YOU KNOW, SO YOU DON'T REALLY HAVE ANY PRIVATE OR PUBLIC, UM, NON-SCHOOL RELATED FACILITIES ON THE INDOOR SIDE FOR BASKETBALL, VOLLEYBALL, DANCE, CHEER, PICKLEBALL, WRESTLING, GYMNASTICS, YOU KNOW, THERE'S LOTS OF DIFFERENT SPORTS THAT YOU CAN DO AN INDOOR VENUE.
AND THEN YOU GOT SOME, SOME OF THE OUTDOOR FIELDS AS WELL, INCLUDING THE, THE PLANNED, UH, COMPLEX AT NUMBER 11 UP ON THE MAP, UH, THERE THAT YOU'RE, THAT YOU'RE DRIVING TOWARDS.
BUT THERE'S LOTS OF COURT FACILITIES REGIONALLY.
I MEAN, THIS IS LOOKING AT A NUMBER OF THEM, YOU KNOW, JUST THROUGHOUT THE STATE.
AND THERE ARE, YOU KNOW, A ROBUST SET OF SUPPLY, BUT IT'S PROPORTIONATE TO THE, TO THE LEVEL OF POPULATION, YOU KNOW, WITHIN THE STATE AND SOME OF THESE INDIVIDUAL MARKET AREAS.
BUT WE JUST WANTED TO LOOK AT THIS AND MAKE SURE WE UNDERSTOOD THE LOCAL COMPETITIVE LANDSCAPE AND THEN MORE OF THE REGIONAL COMPETITIVE LANDSCAPE FOR THESE INDOOR COURT FACILITIES.
WE LOOKED ALSO AT INDOOR TURF FACILITIES.
'CAUSE USUALLY WHEN YOU TALK ABOUT A PROJECT THAT CAN COME CLOSE TO, OR EVEN MAKE A PROFIT EVERY YEAR FINANCIALLY, AND ONE THAT'S AN INDOOR FACILITY, YOU'RE KIND OF OFF THE TOP OF YOUR HEAD, CUT
[00:55:01]
OFF AQUATIC FACILITIES, WATER, AND YOU CUT OFF ICE BECAUSE THEY TEND TO BE VERY OPERATIONALLY EXPENSIVE TO RUN.SO THAT USUALLY REQUIRES AN OPERATING SUBSIDY.
THE INDOOR FACILITIES THAT TENDED TO BE VERY PRODUCTIVE, THAT YOU CAN GENERATE A CASH FLOW OF, UH, 50,000, A HUNDRED THOUSAND, EVEN $500,000 DEPENDING ON THE SIZE OF THESE PROJECTS.
EVERY YEAR OF PROFIT ARE THOSE THAT TEND TO BE ORIENTED AROUND COURTS.
YOU KNOW, THE HARDWOOD PERMANENT COURTS, THEY'VE GOT THE NETS AND ALL THE EQUIPMENT WHERE IT'S PLUG AND PLAY FOR ANY TYPE OF COURT ACTIVITY.
AND THEN A LOT OF THOSE JUST THINK RIGHT IN YOUR, YOU KNOW, UH, ONE OF YOUR NEIGHBORS WITH A FIELDHOUSE, USA AND FRISCO.
THEY'VE GOT THE COURTS AND THEN THEY'VE GOT THE INDOOR TURF AND THEY'VE GOT ALL THE AMENITIES THAT GO ALONG WITH THAT.
UM, THAT TYPE OF FACILITY TENDS TO BE THE MOST PROFITABLE, EFFICIENT, AND PRODUCTIVE FROM A UTILIZATION AND AN ATTENDANCE STANDPOINT.
SO THAT'S, THAT'S THE REASON WHY, YOU KNOW, ULTIMATELY IT WAS GOOD THAT ONCE WE REACHED OUT TO ALL THESE DIFFERENT SPORTS USER GROUPS FROM LOCAL AND NON-LOCAL, THAT MANY OF THEM, YOU KNOW, THE DEMAND THAT REALLY ROSE TO THE TOP FOR THE INDOOR VARIETY OF SPORTS WERE REALLY THE COURT BASED STUFF.
AND SO THAT, THAT ALIGNS WELL WITH THAT KIND OF A MODEL AND THAT KIND OF A CONCEPT.
ASPIRE THROUGH SOME OF THESE, YOU KNOW, YOU'VE GOT A LOT OF, YOU KNOW, UH, SPORTS PROVIDERS AND USER GROUPS AND ORGANIZATIONS THAT ARE AFFILIATED WITH THIS.
WE SPOKE TO A NUMBER OF THESE, YOU KNOW, GOT SOME REAL DETAILED INTERVIEWS.
YOU'LL SEE WRITE UPS IN A REPORT FILLING OUT, YOU KNOW, A PAGE OR A HALF A PAGE OF ALL THE CONVERSATIONS WE HAD WITH THESE MAJOR GROUPS.
AND THE FEEDBACK THAT WE GOT WE RECEIVED WAS VERY, VERY FAVORABLE.
YOU KNOW, THESE ARE KIND OF THE HIGHLIGHTS AND THERE'S A LOT OF TEXTS UP THERE, BUT I'LL TRY TO GIVE YOU A QUICK SUMMARY OF THAT.
YOU KNOW, WE FEEL THAT THERE'S A NOTABLE MARKETED OPPORTUNITY FOR THIS INDOOR AMATEUR SPORTS FACILITY IN AUBREY.
AND AGAIN, GOING BACK TO MY INITIAL COMMENTS AS I FIRST STOOD UP HERE, THAT THIS MASSIVE GROWTH, YOU'RE JUST ON THE CUSP OF BEING ABLE TO REALLY BE ENVELOPED BY THAT, AS YOU KNOW, AND I'M SURE THAT THAT'S A VERY MIXED BAG FOR YOU.
BUT, BUT THE POINT BEING IS THE DISTANCE.
IF YOU HAD AN INDOOR FACILITY FOR A MASSIVE AMOUNT OF POPULATION TO DRIVE FOR GAMES, NOT NECESSARILY, YOU KNOW, RECREATIONAL LEAGUES NECESSARILY, BUT SOME OF THOSE YOU COULD BE DRAWING FROM, FROM THE AREA, BUT YOU KNOW, MORE OF THE, UH, TRADITIONAL LEAGUE PLAY CAMPS AND CLINICS AND THEN TOURNAMENTS ON THE WEEKEND, YOU KNOW, THAT TYPE OF ACTIVITY IS A VERY REASONABLE DISTANCE YOU HAVE FROM A LARGE AMOUNT OF POPULATION.
SO WHEN YOU RUN THESE EXTRAPOLATIONS AND YOU THINK ABOUT ALL THE DIFFERENT TYPES OF, UM, UH, POPULATION THAT YOU HAVE WITHIN CERTAIN DRIVING DISTANCES IS VERY SIGNIFICANT.
WHEN WE SPOKE TO A LOT OF THESE USER GROUPS, BOTH WITHIN DENTON COUNTY AND OUTSIDE OF DENTON COUNTY, YOU KNOW, THE STRONGEST DEMAND WAS REALLY FOR THE, THE INDOOR HARDWOOD COURT AND SOME DEMAND FOR INDOOR TURF.
I KNOW YOU'VE GOT THE CITY OR YOU'VE GOT THE, UM, AUBREY HIGH SCHOOL AND THEIR MASSIVE NEW FIELDHOUSE.
BUT AGAIN, YOU KNOW, FROM THE TURF ANGLE, YOU KNOW, THAT'S, THAT'S A, A FANTASTIC BEAUTIFUL FACILITY.
BUT THE AVAILABILITY FOR OTHER NON-SCHOOL USES IS VERY LIMITED.
UM, YOU KNOW, USUALLY IN THESE FACILITIES, LIKE IN FIELDHOUSE, USA FRISCO OR ANY OF THE OTHER FIELD LABS, USA PROJECTS AND ALL THE SIMILAR RUNS AROUND THE COUNTRY, YOU'LL SEE THAT IF YOU TALK TO THE BUILDING MANAGERS AND YOU SAY, YOU KNOW, HOW'S YOUR FACILITY DOING? AND WHAT'S YOUR OPINION OF THE INDOOR TURF ELEMENT THAT YOU'VE GOT TO MARRY WITH YOUR HARDWOOD COURTS? I WOULD SAY THAT 75% OF THE, THE MANAGERS I'VE SPOKEN TO SAY, IF I HAD TO DO IT ALL OVER AGAIN, I'D GET RID OF THE TURF AND JUST ADD ANOTHER COURT, YOU KNOW, OR ANOTHER QUARTER.
TWO, THAT'S HOW MUCH DEMAND THAT THESE COURT SPACE, UH, COULD BE USED.
WHEN YOU THINK ABOUT ALL DIFFERENT TYPES OF SPORTS FACILITIES, INDOOR COURT FACILITIES ARE THE ONES THAT HAVE THE WIDEST VARIETY OF SPORTS AND, AND RECREATION USAGES FOR THEM.
AND JUST OFF THE TOP OF MY HEAD, YOU KNOW, BASKETBALL, VOLLEYBALL, DANCE, WRESTLING, CHEER, PICKLEBALL, FUTSAL, THE LIST GOES ON AND ON OF STUFF THAT YOU CAN DO ON COURTS.
THE INDOOR TURF IS NOT NECESSARILY TO RUN GAMES OR BIG PRACTICES IN THERE, BUT OFTENTIMES IT'S FOR THE FIELD SPORTS TO GET IN AND OUTTA THE HEAT OR TO GET IN AND OUTTA THE WEATHER OR FOR OFF SEASON TRAINING TO COME IN THERE WITH BATTING CAGES OR YOU DO, YOU KNOW, INFIELD, YOU KNOW, UH, TRAINING OR, OR SOMETHING LIKE THAT, OR OTHER TYPES OF EXERCISE OR RECREATION OR LEISURE AND THINGS LIKE THAT.
SO, YOU KNOW, THERE ARE IMPORTANT PIECES, BUT IF YOU HAD TO SCALE THIS BACK, YOU COULD PROBABLY THINK ABOUT DROPPING THE TURF SPACE AND JUST FOCUS ON THE HARDWOOD.
YOU COULD EVEN EXPAND IT IN THE FUTURE, YOU KNOW, IF, IF YOU WANTED TO, TO ADD SOME ADDITIONAL SPACE.
BUT OVERALL, YOU KNOW, WE'RE, WE'RE THINKING ABOUT, YOU KNOW, GREAT, YOU KNOW, UH, ESPECIALLY FROM THE TOURNAMENT POTENTIAL, YOU KNOW, TOURNAMENT PRODUCERS ARE ALWAYS LOOKING FOR MORE NEW PRODUCTS.
THEY'RE LOOKING FOR NEW, YOU KNOW, COMPETITIVE OPPORTUNITIES, SO YOU KINDA HAVE TO TAKE WHAT THEY SAY WITH A GRAIN OF SALT.
BUT WE TALKED A LOT OF THESE TOURNAMENT PRODUCERS AND THEY WERE VERY EXCITED ABOUT THE OPPORTUNITY AND
[01:00:01]
THEY THOUGHT THAT THE DISTANCE FROM AUBREY TO, TO A LOT OF THEIR CORE, YOU KNOW, THE AMENITIES OF THE GREATER DALLAS FORT WORTH AREA WERE GREAT.SO, SO THERE WAS GOOD DEMAND FROM THAT.
WE IDENTIFIED A COMPETITIVE SET.
THESE ARE SOME OF THEM UP THERE ON THIS LIST.
YOU CAN SEE IT STARTED WITH THAT FRISCO, UH, PROPERTY THAT WE'RE VERY FAMILIAR WITH.
I'VE WORKED WITH THEM BEFORE, UH, AND A LOT OF THESE OTHERS, SO THEY'RE KIND OF ALL OVER.
YOU'VE GOT SOME WITHIN YOUR AREA AND THROUGHOUT THE COUNTRY, BUT MANY OF THEM HAVE, YOU KNOW, IF YOU THINK ABOUT LAYING OUT THIS FACILITY, YOU'VE GOT THE BASKETBALL COURT, WHICH IS KIND OF LIKE THE, THE BENCHMARK FOR SPACE AND SQUARE FOOTAGE.
IF YOU LAY OUT THE ALLEYWAYS IN BETWEEN THE COURTS, YOU CAN ACTUALLY DO, UH, TWO VOLLEYBALL COURTS PER BASKETBALL COURT, IS KIND OF HOW THAT MATH WORKS.
SO, YOU KNOW, THE AVERAGE FACILITY OF ABOUT, YOU KNOW, SEVEN, UH, SEVEN OR EIGHT BASKETBALL COURTS, FULL-SIZED BASKETBALL COURTS, OR 13 TO 16 VOLLEYBALL.
JUST SOME EXAMPLES IN PICTURES OF, OF JUST A SELECTION OF SOME OF THESE COMPS.
YOU CAN SEE THAT, YOU KNOW, A LOT OF THEM WILL HAVE, YOU KNOW, OBVIOUSLY ALL, THEY ALL HAVE THE COURTS, BUT THEN SOME OF THEM WILL HAVE THE TURF OR SOME OTHER AMENITIES AS A PART OF THAT.
BUT, UM, THESE PROJECTS CAN BE VERY PRODUCTIVE AND VERY SUCCESSFUL IN EACH OF THESE COMMUNITIES.
DRAWING IN, YOU KNOW, SOME OF THEM, LIKE, LIKE FIELD HAS USA FRISCO, THEY'RE ATTRACTING MORE THAN A HALF A MILLION PEOPLE EVERY YEAR, YOU KNOW, JUST BY VIRTUE OF THAT, ATHLETES AND SPECTATORS.
THE POPULATION, THOUGH THIS IS A DEMOGRAPHIC COMPARISON OF ALL THESE COMPS, YOU CAN'T, IT'S HARD TO SEE, BUT YOU SEE LIKE THE, THE LIGHT BLUE OR THE LIGHT GRAY SHADED LINES, UH, HIGHLIGHTING AUBREY, THIS IS SORTED BY THE 90 MILE, I'M SORRY, THE 30 MINUTE DRIVE TIME.
AND COMPARED TO ALL THESE OTHER MARKETS, AUBREY IS, DOES VERY WELL.
YOU LOOK AT THE RANKINGS OF THE VERY BOTTOM ROW OF EACH OF THESE CHARTS, YOU KNOW, GO ALL THE WAY UP TO 90 MINUTES AND, YOU KNOW, AUBREY'S THIRD PLACE OUT OF ALL THESE SUCCESSFUL BUILDINGS THAT WE LOOKED AT AROUND THE COUNTRY.
EVEN, YOU KNOW, WHEN YOU GO TO A REAL TIGHT DRIVE TIME AND TRY TO CAPTURE THE POPULATION WITHIN 15 MINUTE DRIVE, YOU KNOW, YOU'RE STILL NOT AT THE BOTTOM OF THE LIST.
YOU'RE NINE OUT OF, OUT OF A 13.
SO, I MEAN, WHAT THIS IS SUGGESTING TO ME IS THERE IS ENOUGH POPULATION WITHIN A PRACTICAL DRIVING DISTANCE TO SUPPORT ACTIVITY EVEN BEYOND WHAT YOUR LOCAL BUSINESS THAT YOU COULD HAVE, UH, AND, AND BETTER CAPTURE AND BETTER PROVIDE, UH, AN ASSET FOR.
AND, AND HERE'S WHAT THE RECOMMENDATION WOULD BE.
UM, SO IT, IT MAY SEEM LIKE A LARGE FACILITY, BUT, BUT THERE'S, THERE, THERE'S A RATIONALE FOR THIS SIX FULL SIZE HARDWOOD COURTS, OR 12 FULL SIZE VOLLEYBALL COURTS.
AND THEN WE'RE ALSO SAYING THE TURF FIELD OF ABOUT 17,000 SQUARE FEET, USUALLY SIX IS KIND OF SIX FULL SIZE BASKETBALL IS KIND OF THE MINIMUM SIZE TO GET A, LIKE A COURT COMPLEX TO REALLY BE ABLE TO DO LOCAL PIECES OF BUSINESS, OF A VARIETY, NUMBER OF SPORTS, AND THEN ALSO BE ABLE TO DO TOURNAMENTS ON THE WEEKEND OF OPTIMALLY.
YOU'VE GOT LOTS OF OTHER AMENITIES THAT GO ALONG WITH THAT.
WE'RE TALKING ABOUT, YOU KNOW, TOTAL SITE AREA OF ABOUT 6.5 ACRES IN TOTAL, TWO, TWO, UH, ACRES FOR THE BUILDING ITSELF.
PROJECT COSTS ARE HIGH, YOU KNOW, CLOSE TO 40, UH, 46, 40 $7 MILLION, HARD COSTS, PLUS SOFT COSTS EXCLUDING PARKING COSTS, AND THEN THE SITE, BECAUSE THEY COULD BE VERY VARIABLE DEPENDING ON HOW YOU DO IT.
SITE LOCATION, I'M SUGGESTING THREE DIFFERENT OPTIONS ON THE LEFT OVER THERE, YOU KNOW, EITHER NEXT TO A, A NEW HOTEL, IF YOU DECIDE TO PURSUE BOTH OF THESE PROJECTS THAT THAT COULD BE, YOU KNOW, A, A REAL GREAT LOCATION NEAR THE SPORTS COMPLEX, YOU'VE GOT THE OPPORTUNITY TO CREATE A SPORTS CAMPUS OR A DESTINATION TO REALLY CREATE THAT SYNERGY.
I THINK THAT THAT WOULD WORK WELL.
THAT'S A NICE LOCATION WITHIN AUBREY AS WELL, OR NEAR THE SOUTH END, YOU KNOW, KIND OF THE SAME DISCUSSION TOO.
THE ABILITY TO BE EVEN THAT CLOSER TO BE ABLE TO MAKE THE DECISION EASIER FOR THESE PEOPLE IN OTHER AREAS OF THE COUNTY TO JUST SIMPLY UTILIZE YOUR FACILITY TOO.
SO THERE, THERE'S, THERE'S DIFFERENT WAYS THAT YOU COULD DO THAT, BUT ANY THREE OF THOSE COULD, COULD, COULD MAKE A GOOD PROJECT.
THE GOVERNANCE AND THE OPERATOR MODEL, THE PUBLIC MODEL, UH, WITH THE CITY AS THE OWNER AND THE OPERATOR IS ONE MODEL.
THE OTHER MODEL THAT WE WOULD RECOMMEND WOULD BE A PUBLIC PRIVATE, THE CITY AS THE OWNER, AND THEN YOU CONTRACT OUT TO A QUALIFIED THIRD PARTY OPERATOR TO, TO OPERATE YOUR BILLING FOR YOU.
UM, BUT IN THIS PARTICULAR CASE, FOR THE PURPOSES OF THE PROJECTIONS OF, OF FINANCIAL AND ECONOMIC IMPACT, WE ASSUME THE PUBLIC MODEL, THE PRIVATE MODEL, THE PUBLIC PRIVATE MODEL COULD THEORETICALLY, YOU KNOW, USUALLY YOU SEE THOSE FACILITIES HAVE MORE IN-HOUSE PROGRAMMING.
THEY DO THEIR OWN, THEY, THEY'RE, THEY'RE MORE EFFICIENT AND THEY'RE BETTER AT, AT SECURING SPONSORSHIP PACKAGES AND THINGS LIKE THAT.
THAT'S WHY THE PUBLIC PRIVATE MODEL IS, IS REALLY AN ATTRACTIVE MODEL FOR A PROJECT LIKE THIS.
BUT ON THE OTHER HAND, THE PUBLIC MODEL IS YOU COULD COMPLETELY, YOU KNOW, SECURE YOUR OWN DESTINY AND YOU COULD REALLY CONTROL EVERY ASPECT OF THE FACILITY IF YOU'VE WORKED ON IT UNDER THE, THE PEER PUBLIC MODEL FUNDING OPPORTUNITIES.
UM, YOU KNOW, THERE REALLY AREN'T ANY MAGIC BULLETS WITH RESPECT TO THESE KIND OF PROJECTS,
[01:05:01]
UNFORTUNATELY.UM, YOU KNOW, IN PREVIOUS YEARS, LIKE THE FIELDHOUSE USA FRISCO PROJECT, ORIGINALLY, THEY BROUGHT A FAIR AMOUNT OF CAPITAL TO THE TABLE AND EQUITY TO THE TABLE, MONEY TO THE TABLE TO HELP BUILD THE THING.
IN THIS DAY AND AGE, UNFORTUNATELY, A LOT OF THAT PRIVATE MONEY AT THE FRONT END IS DRIED UP.
AND SO INSTEAD WHAT WE'RE SEEING IS REALLY NO CONTRIBUTIONS UPFRONT, BUT WE'RE SEEING THE PRIVATE PARTY, IF THEY'RE CONTRACTED AS AN OPERATOR, TO SPIN OFF THROUGH A LEASE AGREEMENT OR A MANAGEMENT AGREEMENT, A CERTAIN AMOUNT OF MONEY IF THE BUILDING IS PROFITABLE IN FUTURE YEARS.
BUT YOU'VE GOT SOME OTHER, YOU KNOW, SOME OF THESE OTHER ITEMS IN THE LEFT, YOU KNOW, YOU CAN HELP DEFRAY THE PUBLIC SECTOR COSTS BY THINGS LIKE NAMING RIGHTS AND OTHER SPONSORSHIPS, AND YOU GET PRIVATE PARTIES TO PAY FOR SOME OF THE VENDOR RIGHTS OR, OR THINGS LIKE THAT CAN HELP DEFRAY THAT A LITTLE BIT.
BUT FOR ALL INTENTS AND PURPOSES, WE'RE TALKING ABOUT A PUBLIC PROJECT THAT WOULD BE NEEDED TO REALLY EXECUTE THIS, UH, TYPE OF PROJECT.
AND THERE'S A WHOLE HOST OF DIFFERENT FUNDING SOURCES AND REVENUE SOURCES.
UH, AND AGAIN, NO, NO REAL MAGIC BULLET TO TELL YOU OTHER THAN THE, AND IT'S ANTICIPATED THAT THIS TYPE OF A PROJECT WOULD REQUIRE ABOUT A 90% CONTRIBUTION FROM THE PUBLIC SIDE.
AND, YOU KNOW, IF YOU ADD UP THE, ALL THE PRIVATE CONTRIBUTIONS, IT MIGHT BE MORE LIKE 10% ON THAT END.
RAN A BUNCH OF NUMBERS ON UTILIZATION.
I WON'T GET INTO ALL THIS, BUT THIS IS, YOU KNOW, A SENSE OF TRYING TO GET TO A PROJECTION OF YOUR FINANCIAL PROFIT AND YOUR ECONOMIC IMPACT.
WE'RE LOOKING AT STABILIZE YEAR FOUR UNDER THIS, UH, PROJECT, YOU KNOW, A, A PROFIT, A NET OPERATING INCOME OF THREE, 305,000 RELATIVE TO THE DEBT SERVICE REQUIRED FOR A 45, 46, 40 $7 MILLION PROJECT.
JUST WITH LIKE A COMMENT WITH, UH, MR. HYMAN A SECOND AGO, WHICH IS, YOU KNOW, THAT'S NOT GONNA BE ENOUGH TO PAY DEBT SERVICE ON THE BUILDING, BUT IT'S STILL A, A POSITIVE AREA WHERE FRANKLY YOU COULD TAKE THAT 300,000 AND USUALLY YOU COULD PUT THAT INTO A CAPITAL RESERVE FUND TO PAY FOR FUTURE CAPITAL REPAIRS AND IMPROVEMENTS NEEDED FOR THE BUILDING IN FUTURE YEARS.
AND THAT NUMBER LINES UP VERY CLOSELY.
USUALLY WE LOOK AT 0.5% OF THE HARD CONSTRUCTION COSTS OF A PROJECT THAT WE RECOMMEND SETTING ASIDE FOR FUTURE YEAR CAPITAL NEEDS, AND THAT ALIGNS PRETTY WELL WITH THAT $300,000 PROFIT FOR A BUILDING LIKE THIS ECONOMIC IMPACT.
YOU KNOW, THESE NUMBERS ARE A LITTLE BIT HIGHER THAN THE HOTEL, $17 MILLION PER YEAR BEING GENERATED.
THE CONSTRUCTION IMPACTS ARE OVER ON THE, THE FAR RIGHT COLUMN MIXED IN WITH THE, THE CUMULATIVE VERSION.
SO THERE'S, YOU KNOW, THERE'S A, A FAIR NUMBER OF NET NEW IMPACTS FOR A PROJECT LIKE THIS, AND IT'S MORE ARGUABLE THAT THESE NUMBERS WOULD BE, UH, MUCH MORE SOLIDLY NET NEW THAN ANY KIND OF ARGUMENT YOU COULD HAVE WITH MAYBE SOME OF THE HOSPITALITY PROJECTS, LIKE A HOTEL BEYOND THE QUANTITATIVE THAT A LOT OF COMMUNITIES LOOK AT TO SAY, HERE'S THE REASON WHY WE WANT TO BE DOING THIS, THE NET NEW ECONOMIC ACTIVITY, THE NET NEW TAX DOLLARS, BUT YOU'VE ALSO GOT THESE QUALITATIVE OR THESE OTHER NON-QUANTIFIABLE BENEFITS.
ALL OF THESE TEND TO BE IMPORTANT TOO WHEN YOU'RE THINKING ABOUT, YOU KNOW, WHETHER THIS IS A PROJECT THAT, THAT YOUR COMMUNITY COULD INVEST IN.
I'M SORRY IT IS BEEN SO LONG AND SO MUCH DATA RICH, BUT ANY QUESTIONS ON THE SPORTS PROJECT THAT I COULD ANSWER? I'M SURE YOUR MIND'S SPINNING RIGHT NOW.
FIRST OF ALL, I WAS BORN IN WALOO, IOWA, SO I'M GLAD YOU, YOU KNOW, YOU USED ONE OF THEM ON THE, ON THE SLIDE TWO.
UM, IF YOU CHOSE TO DO NO TURF AND JUST ALL COURTS, DOES THAT RAISE OR LOWER THE ALL IN COST? CAN YOU REPEAT THAT QUESTION AGAIN? IF YOU WOULD NOT DO THE TURF AND INSTEAD JUST DID ALL HARD WORD COURTS OR WHATEVER, WOULD THAT RAISE OR LOWER THE COST? IS IT CHEAPER TO JUST TAKE OUT TURF? IS IT MORE EXPENSIVE TO INSTALL TURF THAN NOT? NO.
SO IT'S ABOUT THE SAME? WELL, NO, IT'S, IT, YOU'RE IT'S A CHEAPER PROJECT.
SO THE WAY THAT, YOU KNOW, I WOULD CALCULATE IT AT THIS EARLY PLANNING STAGE, I TOOK THE TOTAL GROSS SQUARE FOOTAGE OF THE BUILDING APPLIED IN INDUSTRY PER SQUARE.
SO THEN, YOU KNOW, YOU'RE TALKING ABOUT LOSING THE 17,000, WHICH IS NET SPACE, YOU WOULD PROBABLY HAVE ABOUT 25,000 OF GROWTH SPACE AND YOU WOULD PULL OUT OF THE 85, YOU'D HAVE A LOWER COST PROJECT AT THAT POINT.
UM, I GUESS THE CITY WOULD HAVE TO HIRE A BUNCH OF NEW PEOPLE, RIGHT? 'CAUSE THEY WOULD STAFF IT.
SO THAT WOULD BE A GOOD THING.
WELL, IT, IT, OR HOW WOULD, HOW WOULD IT GET STAFFED IF THE CITY RAN IT TYPICALLY? YEAH.
SO USUALLY YOU WOULD ADVERTISE FOR A GENERAL MANAGER AND SO IT, IT WOULD BE ONE OF THOSE POSITIONS WHERE YOU WANT TO GET AN EXPERIENCED MANAGER THAT'S DONE SIMILAR PROJECTS OR RUN SIMILAR PROJECTS LIKE THIS, OR WAS AN ASSISTANT GM AT ANOTHER HIGH PROFILE BUILDING OF A SIMILAR NATURE.
SO YOU'D HIRE THEM AND THEN, YOU KNOW, UNDER THE MODEL THAT WE'RE UTILIZED FOR THE PROJECTIONS, IT'S A CITY OWNED, CITY OPERATED MM-HMM
SO THE PARKS DEPARTMENT, YOU KNOW, I, I CAN'T SPEAK TO WHAT THEIR CAPACITY IS TO SHIP SOME OF THEIR EMPLOYEES
[01:10:01]
OVER THERE AT THIS POINT, BUT IN, IN ALL LIKELIHOOD, YES.I MEAN, IN THE REPORT WE SHOW A, WE SHOW A, YOU KNOW, A HYPOTHETICAL ORG CHART AND, YOU KNOW, IT'S, IT'S REALLY NOT THAT MUCH STAFF.
I, I CAN'T REMEMBER THE, THE NUMBER OFF THE TOP OF MY HEAD.
YOU'VE GOT AN, UH, AN ADMINISTRATIVE ASSISTANT, YOU'VE GOT A SALES MANAGER, YOU'VE GOT AN OPS MANAGER, YOU'VE GOT, UM, A JANITOR STAFF, UH, AND THEN YOU'VE GOT SOME PART-TIME EMPLOYEES.
COULD YOU TALK A LITTLE BIT ABOUT IF IT WERE LEASED OUT TO A PRIVATE ENTITY, HOW THAT KINDA LOOKS? YEAH.
IN TERMS OF AN AGREEMENT? WELL, YES.
IF SO, IF YOU DID THIS OTHER MODEL, THIS ONE RIGHT HERE ON THE RIGHT HAND SIDE, THE SECOND ONE, THE PUBLIC PRIVATE MODEL, SO THE CITY OWNS IT, AND THEN THE CITY WOULD DESIGNATE SOMEBODY WHO'S THE CONTRACT ADMINISTRATOR.
AND SO IT'D BE A PERSON AND THAT PERSON THEN WOULD BE THE POINT PERSON THAT THE PRIVATE OPERATOR THAT'S CONTRACTED UNDER A THREE TO FIVE YEAR MANAGEMENT AGREEMENT, OR YOU COULD DO A LEASE AGREEMENT.
A LEASE AGREEMENT IS USUALLY ONLY UTILIZED FOR PROJECTS THAT COULD GENERATE A CASH FLOW BECAUSE THERE'S USUALLY A REVENUE SPLIT THAT CAN HAPPEN.
SO A MANAGEMENT AGREEMENT IS SIMPLY A STRAIGHT UP, YOU GET THAT THE, THE PRIVATE PARTY IS A BASE FEE PAID FROM BY THE CITY.
IT GETS AN INCENTIVE FEE, AND THOSE TWO ITEMS MIGHT TOTAL A HUNDRED THOUSAND, 150, $200,000 PER YEAR.
SO THAT'S ANOTHER EXPENSE UNDER THIS MODEL.
BUT THE, BUT WHAT WE FIND IS THE, THE REVENUE ENHANCEMENT THAT A PRIVATE OPERATOR BRINGS THROUGH IN-HOUSE PROGRAMMING, MORE PRODUCTIVE SPONSORSHIP SALES AND, UM, NETWORKING TO GET MORE TOURNAMENTS IN BASED ON THEIR INDUSTRY CONTACTS, USUALLY OFFSETS THAT OR EVEN EXCEEDS THAT IN TERMS OF THE REVENUE IMPACT RELATIVE TO THAT COST.
SO IF YOU DID THAT, THEN THE PRIVATE OPERATOR, IF THEY WERE UNDER CONTRACT THROUGH A MANAGEMENT AGREEMENT OR A LEASE AGREEMENT, WOULD EFFECTIVELY JUST HIRE ALL THEIR OWN STAFF AND IT WOULDN'T REALLY BE RULED BY THE RED TAPE OF GOVERNMENT, OR YOU WOULDN'T HAVE TO DEAL WITH ANY OF THAT FROM AN HR STANDPOINT, REALLY THE CITY JUST HAS TO OVERSEE THE CONTRACT.
IS THAT OPERATOR PERFORMING BASED ON THE GUIDANCE SET FORTH IN THE MANAGEMENT AGREEMENT OR THE LEASE AGREEMENT PERIOD? AND THEN IF THEY'RE NOT, THEN THERE'S AN OUT CLAUSE AND YOU CAN KICK 'EM OUT, YOU CAN GET A NEW OPERATOR IN IF THEY'RE NOT DOING THEIR JOB RIGHT.
I'M SORRY, DID THAT ANSWER YOUR QUESTION? I, I THINK WE'RE TALKING ABOUT STAFFING.
DO YOU HAVE EXAMPLES OF, OKAY, YOU KNOW HOW SOMETIMES CONFERENCE CENTERS ARE ATTACHED WITH HOTELS, SO IS THERE, YOU HAVE NATIONAL EXAMPLES OF ANY TYPE OF COMBINATION PROJECT WHERE THE PRIVATE, THE P THREE ENCOMPASSED THE ENTIRE INSTALLMENT? YEP.
AND THAT, THAT GETS BACK TO MY INITIAL COMMENTS TO YOU ABOUT FOR FULL SERVICE PROPERTIES, A FUNDAMENTAL ASPECT OF A FULL SERVICE MODEL IS IN-HOUSE CONFERENCE SPACE AND MEETING SPACE THAT HELPS THEM DRIVE GROUP BUSINESS, WHICH IS IMPORTANT FOR THEIR MODEL, RIGHT? RIGHT.
AND SO THOSE KIND OF MODELS ARE CALLED FULL SERVICE PROPERTIES AND WE WOULD BE TALKING ABOUT, YOU KNOW, A $70 MILLION GAP IF, IF YOUR INCENTIVE REQUIRED, IF YOU WANTED TO DO ONE OF THOSE.
SO UNFORTUNATELY THE TYPES OF HOTEL PROJECTS THAT I'M SUGGESTING FOR YOU, THEY'RE NOT REALLY SET UP FROM A BUSINESS MODEL TO BE ABLE TO HANDLE OPERATING, YOU KNOW, JUST AS AN EXAMPLE, YOU GO ALL THE WAY TO THE SALT LAKE CITY MARKET.
I'VE BEEN INVOLVED WITH, WITH, UM, THE DAVIS CONFERENCE CENTER.
THEY'RE ONE OF THE RARE CONFERENCE CENTERS OUT THERE THAT'S A PUBLICLY OWNED CONFERENCE CENTER THAT PARTNERED WITH NE NEARBY LIMITED SERVICE HOTELS TO SERVE AS KIND OF THE HEADQUARTER HOTEL PROPERTIES THAT HELPS THAT PROJECT WORK.
YOU COULD DO THAT, BUT UNFORTUNATELY THEY'RE JUST NOT VERY EFFICIENT BECAUSE THEIR MODEL'S NOT SET UP THAT WAY.
SO YOU COULD CERTAINLY DO A CONFERENCE CENTER HOTEL MODEL, BUT YOU KNOW, WITH A LOT OF SMALLER COMMUNITIES THAT DON'T HAVE THE ABILITY TO PULL OFF A FULL SERVICE HOTEL, THEY GET A HOTEL LIKE THE ONE I'M TALKING, THEN YOU STILL NEED TO BRIDGE THE GAP.
YOU NEED TO, TO, TO ATTRACT A THIRD PARTY RESTAURATEUR TO PHYSICALLY BUILD RIGHT NEXT TO YOU.
SO ALL OF A SUDDEN YOU'VE GOT A QUASI FULL SERVICE HOTEL THAT CAN HELP SUPPORT THE CONFERENCE CENTER APPROPRIATELY.
WERE YOU ABLE, WHEN YOU INTERVIEWED ALL THOSE GROUPS, THAT WAS GREAT.
UM, WHERE ARE THOSE PEOPLE GOING NOW? YOU KNOW, I MEAN THERE LIKE, THERE'S THIS GIANT HOLE WHERE THERE'S NOTHING, RIGHT, BUT THOSE KIDS ARE PLAYING LEAGUES AND TOURNAMENTS SOMEWHERE, PROBABLY NOT THE SCHOOLS.
SO I MEAN THAT DOES SEEM LIKE A PRETTY BIG OPPORTUNITY.
DID YOU GET A SENSE THAT, YOU KNOW, OH, ALL THESE PEOPLE PLAYING FRISCO OR I MEAN ANYTHING LIKE THAT TO KIND OF YEAH, I MEAN IT'S A COMBINATION OF, OF GROUPS THAT IF YOU'RE NOT, YOU KNOW, ESTABLISHED AND REALLY ENTHUSIASTIC AND IN TRAVEL PROGRAMS,
[01:15:01]
YOU'RE THEN WILLING TO DRIVE A LOT FURTHER TO GO DO STUFF OR YOU'RE MORE, IF YOU'RE MORE RECREATIONAL AND LEISURE LEAGUES, FRANKLY, YOU KNOW, A LOT OF THOSE JUST USE WHATEVER'S AVAILABLE, WHETHER IT'S LIKE A ELEMENTARY SCHOOL GYM OR A MIDDLE SCHOOL GYM OR, OR, UM, YOU KNOW, JUST DRIVE FAR AWAY.BUT ONCE YOU START, LIKE IN YOUR CASE, THERE'S NOT A LOT OF GREAT OPTIONS, SO YOU'RE REALLY NOT HAVING A LOT OF, YOU KNOW, BEYOND THE SCHOOL FACILITIES, A LOT OF THESE, YOU KNOW, YOUNGER GROUPS BEING ABLE TO, TO HAVE THAT KIND OF AN ASSET, TO HAVE A NICE FACILITY TO BE ABLE TO REALLY LEARN THE CRAFT AND LEARN THE TRADING REALLY GET MORE INVESTED INTO IT.
SO, YOU KNOW, IT, IT IS A CHICKEN OR THE EGG WITH THIS MEANING IF YOU HAD THE RIGHT FACILITY, YOU'VE GOT A COMBINATION OF THE OPERATOR, WHICH IN YOUR CASE COULD BE THE, THE PARK AND RECS DEPARTMENT.
THERE'S PLENTY OF IN-HOUSE PROGRAMS THAT YOU COULD ESTABLISH RIGHT OFF THE BAT THAT WOULD BE ANCHORED WITHIN THAT FACILITY.
AND LIKEWISE, THE PRIVATE OPERATOR WOULD DO THE SAME THING.
I MEAN, THAT'S WHERE THEY REALLY MAKE THEIR MONEY AS PRIVATE OPERATORS AND OUR LEASE FACILITIES IS ALL THE IN-HOUSE LEAGUES AND THE CAMPS AND THE CLINICS AND THE, UH, ELITE TRAINING THAT THEY CAN DO IN SOME OF THESE FACILITIES LIKE THIS.
BUT, BUT IT, IT IS, YOU KNOW, ONCE YOU HAVE THE FACILITY, YOU WOULD EXPECT TO SEE A GROWTH IN ALL DIFFERENT SPECTRUMS OF THE, THE YOUTH GROUPS BEING ABLE TO UTILIZE THE FACILITY AND LEARN SPORTS, YOU KNOW, AT AT THE EARLY LEVEL RATHER THAN DRIVING TO ALL THESE PLACES.
SO ALL ELSE BEING EQUAL DISTANCE IS A COMPETITIVE ADVANTAGE? YES, IT'S A COMPETITIVE ADVANTAGE.
IT'S, IT'S ADVANTAGE ALL ELSE BEING, YOU KNOW, FACILITIES ARE BEING SIMILAR AND ALL THAT.
I MEAN, IF I LIVED IN PROSPER AND I HAD TO GO TO FRISCO YEAH.
OR PLANO, LET'S SAY, AND WE BUILT SOMETHING THAT WAS EQUIVALENT TO THAT OLD STUFF THAT HAD IN PLANO DISTANCE FROM YOUR INTERVIEWING, PEOPLE BE LIKE, YES, THAT WOULD, YES, THAT WOULD MAKE ME THINK TWICE ABOUT HAVING TO DRIVE DONE PLANO.
IT, IT'S A COMPETITIVE ADVANTAGE MORE SO FOR THE SPORTS FACILITY THAN THE HOTEL.
YEAH, THE HOTEL IS MORE ONE OF THOSE THINGS WHERE, UM, WE DID HAVE TO DING YOU BECAUSE, YOU KNOW, THERE, THERE'S SUCH A DISTANCE BETWEEN THE NEXT NEAREST HOTEL.
BUT ON THE SPORTS SIDE, AGAIN, YOU KNOW, IF, IF YOU'RE A LITTLE TYKE AND YOU WANT TO DO A LITTLE LEAGUE, YOU'RE GONNA BE, YOU KNOW, MAYBE A COUPLE PRACTICES IN THE MIDDLE OF THE WEEK AFTER WORK, YOU KNOW, WHEN PARENTS CAN DRIVE YOU TO IT OR YOU'VE GOT, YOU KNOW, WEEKEND GAMES AND A LOT OF THE TOURNAMENTS ARE ON THE WEEKEND OF COURSE, BUT, BUT YOU KNOW, IF YOU'RE TOO FAR AWAY, YOU'RE NOT GONNA BE WILLING AT THE YOUNGEST AGE GROUPS FOR THOSE FAMILIES, IT WOULDN'T BE REALISTIC FOR THEM TO LEAVE WORK AT FIVE, PICK UP THEIR KIDS AT FIVE 30 AND THEN DRIVE AN HOUR TO GET TO A FACILITY, WAIT THERE FOR TWO HOURS AND THEN DRIVE ANOTHER HOUR BACK.
YOU KNOW WHAT I MEAN? SO, SO YOU ARE MISSING PEOPLE, ESPECIALLY IN THE, THE LOWER AND MORE RECREATIONAL ASPECTS RIGHT NOW.
SO WE'VE GOT THESE TWO FINAL REPORTS AND WE'RE GOING THROUGH ANOTHER ITERATION OF A, A COUPLE SMALL REVISIONS IN THESE DRAFTS, BUT, BUT THOSE TWO BIG REPORTS, I'M SURE IF YOU HAVEN'T SEEN THOSE YET, UH, ONCE THEY'RE FINALIZED, YOU KNOW, CAN PROVIDE A LOT OF DETAIL THAT YOU COULD, YOU KNOW, PICK AND CHOOSE WHAT YOU'RE, WHAT YOU KIND OF DRILL INTO WITH IT.
APPRECIATE IT AND I APPRECIATE YOU HANGING WITH ME,
IT'S TOUGH TO HAVE TWO STUDIES AND TRY TO TRY TO COMMUNICATE EVERYTHING WITH IT REAL QUICK.
Y'ALL, ANYBODY ELSE HAVE ANY OTHER QUESTIONS? NO.
THANK YOU SO MUCH FOR YOUR TIME.
UM, ERIC, JAMES AND PARK HILL AND CHANDLER, HOW ZY COZY, SORRY, WITH FRAN AND PITMAN ARE HERE TO PROVIDE AN OVERVIEW OF THE PROJECT AND A FINAL REPORT FOR THIS REPAIR PHASE THAT WAS COMPLETED LAST WEEK.
AND TREVOR, SORRY THE EMAIL DIDN'T MADE IT TO YOU AND TREVOR IT DIDN'T MAKE IT TO THE COUNCIL CHAMBER'S EMAIL.
I CAN PASS AROUND MY IPAD IF THAT'LL, WELL ONE OF THEM WAS, I TRIED TO RE I TRY TO BREAK IT OUT AND SEND IT OFF OF US.
DO YOU GUYS HAVE MUSIC ALONG WITH YOUR PRESENTATION? SOME ELEVATOR MUSIC? YEAH, SOMETHING.
I MEAN THAT'S GONNA BE PRETTY TOUGH TO FOLLOW THAT SO, OR PUPPETRY OR ANYTHING.
DON'T HAVE AS MANY DATA POINTS
POOR BILLY, LOTS OF PRETTY SLIDES WITH COLORS AND THINGS.
AS AN ARCHITECT THOUGH, I WAS SITTING THERE DRINKING EVERYTHING HE WAS SAYING,
I'LL PASS THIS AROUND WITH SOME PHOTOS IF YOU GUYS WANT TO SCROLL THROUGH 'EM AS WE'RE GOING HERE, IF THAT WORKS FOR SOME REASON IT'S JUST, SOUNDS
[01:20:01]
GOOD.YEAH, IT WORKED TO EVERYBODY ELSE'S EMAIL EXCEPT FOR THE CHAMBER HOTEL OF COURSE.
DID YOU SEND IT TO US? WE CAN JUST LOOK ON OUR, UM, I CAN TRY THAT.
I CAN TRY PULL THESE, BUT WE'LL ALL USE THIS AS A BACKUP TOO.
Y'ALL WANT ME TO GO BACK, GET STARTED WITH IT? IS THERE ANYTHING YOU SENT THE ZIP DRIVE ON WHAT YOU'RE, WHAT YOU SENT IN THE OTHER SCREEN? YEAH.
YEAH, I JUST BROKE THEM OUT INTO THE SEPARATELY FOR YOU, JUST IN CASE THAT WAS THE ISSUE.
I'M JUST GONNA, I'LL SEE IF THE DRIVE SHOULD OPEN UP.
WE'LL BE ON THE LOOKOUT, BUT I'M SURE EVERYBODY HAS DRIVEN BY DOWNTOWN, RIGHT? I HOPE.
NO
I KNOW
WELL I CAN GO AHEAD, GO FOR IT AND JUST KIND OF START AND THEN AS PHOTOS GO THROUGH, Y'ALL CAN ASK QUESTIONS.
UM, SO I AM EXCITED TO BE IN FRONT OF Y'ALL AGAIN TONIGHT.
UH, LAST TIME I THINK WE WERE APPROVING A CONTRACT TO ACTUALLY GET STARTED ON THE CONSTRUCTION.
THIS TIME WE'RE EXCITED TO SAY THE CONSTRUCTION IS FINISHED OR IT'S WRAPPING UP.
UH, THIS PROJECT ENDED UP BEING FANTASTIC COURSE WITH EVERY OLD BUILDING.
WE FOUND SOME FUN AND INTERESTING THINGS.
I THINK THE FAVORITE ONE OF CHRISTINE'S WAS THE SNAKE SKIN.
UH, AND SO IT WAS ONE OF THOSE THINGS THAT YOU ALWAYS PEEL BACK LAYERS AND YOU FIND DIFFERENT HISTORY MM-HMM
UH, MASONS WENT THROUGH AND DID A FANTASTIC JOB OF REPOINTING THE BUILDING, UH, FIXING THE MORTAR IN MULTIPLE LOCATIONS, UH, REMOVING THE EXISTING, UH, WALKER, WALKER WALK-IN COOLER FREEZER, UH, AS WELL AS THE RESTROOMS, UH, THAT HAD JUST MADE IT PAST THEIR LIFE EXPECTANCY, GETTING IT READY FOR FUTURE TENANT.
UH, DURING SOME OF THAT DEMO WE DID FIND SOME ADDITIONAL ITEMS THAT NEEDED TO BE FIXED.
UM, AND SO WE WERE ABLE TO CAPTURE THAT AND LUCKILY NOT GO ABOVE THE BUDGET.
UM, SOME OF THE ITEMS TO ENSURE WE DID NOT GO ABOVE BUDGET WAS WITH TALKING WITH THE CITY.
CERTAIN THINGS LIKE THE ELECTRICAL PANEL AND STUFF.
WE ENDED UP JUST DEMOING IT COMPLETELY AT THIS TIME.
THAT WAS BECAUSE THE EXISTING ELECTRICAL PANEL IN THE BUILDING DID NOT MEET ANY CURRENT CODE.
UH, CITY OFFICIALS CAME BACK AND SAID WE WOULD HAVE TO START FRESH IN ORDER TO MAKE SURE WE ARE BEING COGNIZANT OF YOUR DOLLARS.
WE DID NOT WANNA PUT IN A PANEL THAT COULDN'T MEET A FUTURE TENANT.
SO INSTEAD OF SPENDING THAT MONEY NOW, WE SAID, HOW ABOUT WE HOLD OFF, NOT SPEND THAT MONEY TODAY, USE IT ON OTHER PARTS OF THE BUILDING THAT NEED TO BE MADE SAFE AND READY.
AND THAT'S KIND OF HOW WE SHIFTED SOME OF THE FUNDS AND MOVED IT FROM, UM, SPECIFIC LINE ITEMS TO CONTINGENCY TO FIX THOSE.
UM, AND SO I'M GUESSING HAVE ANY OF THE PHOTOS COME THROUGH? OKAY.
WE'RE NOT LOADING ON THE IPAD EITHER, SO I'M GLAD THEY CAME THROUGH ON THERE.
UM, BUT AS YOU GO THROUGH RIGHT NOW, FOR MAJORITY OF THE BUILDING AS WE GOT IT READY FOR A FUTURE TENANT, WE DID NOT PUT ANY DESIGN ITEMS IN FRONT OF THE BUILDING WAS PAINTED, UH, WITH A PRIMER THAT IS JUST OF A GRAY COLOR, SO FUTURE TENANT AND OR THE CITY CAN DECIDE COLORS THAT Y'ALL WANNA PUT UP THERE.
UH, ON THE INTERIOR, AGAIN, NO FLOORING, NO NEW CEILINGS WERE PUT IN, UH, NO ADDITIONAL TREATMENT TO THE WALLS BESIDES REMOVING ANY PLASTER THAT WAS STARTING TO FALL OFF ALREADY AND THINGS OF THAT NATURE.
UM, SO AT THIS TIME IT IS IN A TRUE DARK SHELL FORMAT.
UM, AND THAT IT'S REALLY JUST READY FOR A FUTURE TENANT TO SIGN A LEASE WITH Y'ALL, UH, TO HAVE ITS NEW LIFE.
WE ALL ABLE TO OPEN 'EM? I CAN OPEN 'EM.
SO I MEAN, Y'ALL, WERE Y'ALL GONNA GO BY PICTURE? BY PICTURE OR JUST KIND OF TALKING ABOUT, WE WERE JUST GONNA KIND OF SCROLL THROUGH AND LET Y'ALL TAKE A LOOK.
IF Y'ALL HAVE ANY, UM, ITEMS THAT ARE POINTING OUT OR STICKING OUT TO Y'ALL, Y'ALL WANT TO ADDRESS MORE THAN HAPPY TO TALK ABOUT THOSE.
YEAH, IT LOOK, IT'S WAY BETTER THAN THESE PICTURES
TAKE OH, GO BY WHEN I LEAVE
SOME OF THOSE PHOTOS WERE DURING CONSTRUCTION.
SO I JUST KIND OF WANTED TO SHOW THE WHOLE PHASE OF THE JOB.
THAT DOOR OPENING THAT'S KIND OF IN BETWEEN THE TWO BUILDINGS, IT LOOKS UNFINISHED.
THAT WAS ONE OF THOSE AREAS WHERE ERIC WAS SAYING WE FOUND SOME OF THOSE THINGS THAT WE WEREN'T REALLY EXPECTING ORIGINALLY.
SO SOME OF THOSE DOLLARS THAT WE SAVED FROM THOSE ITEMS THAT WE DIDN'T HAVE TO DO WENT TO THE RESTORATION OF, OF A LITTLE BIT OF THOSE, THOSE BRICK ITEMS. YEAH.
[01:25:01]
THE FRONT OF IT LOOKS REALLY GOOD.THE COLOR, IT JUST BROUGHT IT BACK TO LIFE.
IT, IT LOOKS VERY GOOD PULLING DOWN THAT OLD CANOPY AND, AND POINTING IT UP AND PUTTING THE SAFETY GLASS IN.
REALLY, I, I WILL SAY THAT BEFORE WE STARTED DEMOLITION, CHRISTINE KEPT SAYING, YOU KNOW, HER EXPECTATIONS OF THAT FRONT AND WHAT SHE THOUGHT IT WAS.
I WAS LIKE, I CAN'T BE THAT BAD.
WHEN THEIR SUBS BEGAN TEARING THINGS APART AND I WAS THERE DURING SIDEWALKS, I WAS LIKE, MAN, I STAND CORRECTED.
IT WAS SO, BUT THEY DID A FANTASTIC JOB OF RESTORING IT BACK.
UM, AND THAT IS SOMETHING THAT I WILL SAY, FRANCIS PITTMAN DID A FANTASTIC JOB.
WE HAD GREAT SAFETY ON THAT SITE.
UH, SO EVEN WITH SOME OF THE LOOSE MASONRY, THE ROT IN THE FRONT AND STUFF OF THAT NATURE, WE HAD NO INCIDENTS.
UH, AND SO IT WAS ONE OF THOSE TYPE OF PERFECT JOBS SCENARIOS THAT WHEN IT WAS ALL FINISHED WE WERE VERY HAPPY.
UH, THE FLOOR LOOKS PRETTY INTERESTING.
WHAT WOULD, WHAT IF SOMEBODY WANTED TO LEAVE IT LIKE THAT, CAN THEY JUST LEAVE IT LIKE THAT? OR DO YOU HAVE TO PUT SOME KIND OF COATING OVER IT? 'CAUSE I LOVE WHAT THE FLOOR LOOKS LIKE.
UM, I WOULD HIGHLY RECOMMEND IF WE GO RESTAURANT PUTTING TYPE SOME TYPE OF SEALER ON THERE.
BUT BESIDES THAT, YOU CAN DEFINITELY LEAVE IT.
IT HAS THIS NICE KIND OF LARGE FORMAT, CONCRETE BOARD PATTERN THAT GOES THROUGH THERE BACK OF IT.
IF YOU LOOK AT THE BACK, IT JUST MAKES, IT LOOKS LIKE A WHOLE DIFFERENT BUILDING.
I DON'T KNOW IF Y'ALL EVER LOOK AT THE BACK OF IT, BUT YEAH, THE BACK LOOKS GREAT.
ALL THAT, THAT WOODWORK IS PAINTED ON THE BACK NOW TOO, SO IT MATCHES WHAT THE REST OF THE BUILDING IS.
BUT IT'S, IT'S PAINTED AND UTILITY WISE, EVERYTHING HAS BEEN MADE SAFE.
SO THE MAIN CONNECTIONS TO THE BUILDING HAVE ALL BEEN CHECKED AND VERIFIED BY PROFESSIONALS, UH, TO ENSURE THAT THERE'S NO ISSUES FOR FUTURE BUILD OUT.
THERE WAS NO AC IN THAT BUILDING, SO WE APPRECIATE THAT.
ANYBODY HAVE ANY QUESTIONS FOR THEM? NO, IT LOOKS GOOD.
HAVE CHRISTINE TAKE YOU THROUGH IT.
I'M HAPPY TO TAKE Y'ALL THROUGH IT ANYTIME.
IT'S SEVERAL WEEKS TO AIR OUT WHEN THE WINDOWS OUT
[Staff Report ]
REPORT.CHRISTINE WILL NOW GIVE A BRIEF OVERVIEW OF STAFF ACTIVITY HIGHLIGHTS, PROJECT UPDATES, AND ANY UPCOMING EVENTS AND ACTIVITIES.
SO THIS REPORT IS IN YOUR FOLDER NOW.
I DIDN'T HAVE IT IN YOUR PACKET AND IT'LL BE IN THE CITY COUNCIL PACKET, BUT I DIDN'T GET IT FINISHED BEFORE I LEFT, UM, ON MY FAMILY.
SO I JUST WANTED TO MENTION A COUPLE THINGS IN YOUR REPORT THAT IS A LITTLE DIFFERENT AND A CHANGED FOR THAT I'LL KEEP DOING GOING FORWARD.
UM, WE, I DID BREAK UP HOW MANY ACRES WE HAVE UH, FOR LAND THAT IS AVAILABLE THAT'S BEING LISTED RIGHT NOW IN AUBREY'S COMMERCIAL THAT WE ARE TRACKING AND SEE.
UM, AND THEN ALSO SQUARE FOOTAGE OF ACTUAL BUILDINGS IN SPACE.
SO, UM, IN THAT LITTLE PARAGRAPH THERE YOU'LL SEE THAT UPDATE.
BUT AS WE GET LEASES, UM, SIGNED AND GET A TENANT IN THERE, YOU MIGHT SEE THAT GO DOWN.
UM, UNLESS WE GET NEW BUILDINGS THAT HAVE MORE SPACE AVAILABLE.
WE DO HAVE TWO NEW BUSINESS PERMITS THAT WERE ISSUED IN UM, JULY.
THEY HAVE NOT QUITE OPENED YET, BUT IT IS MAIN STREET SALON AT TWO 10 SOUTH MAIN STREET AND EGG HOUSE AT 1001 US HIGHWAY 3 77.
THAT'S IN THE OLD JULIUS SPACE AND THE MAIN STREET SALON, JUST SO REFERENCE FOR YOU IS THE OLD, UM, EQUINE INSTINCTS SPACE NEXT DOOR TO OUR BUILDING.
UM, SO THEY SHOULD BE OPENING SOON.
UM, BY THE WAY, SHE WAS REAL EXCITED TO SEE OUR BUILDING.
UM, SO AGAIN, I WANNA KEEP SPREADING THE WORD ABOUT OUR BUILDING.
YOU KNOW, ANYBODY THAT'S LOOKING, JUST TELL 'EM, CALL ME UP, WALK 'EM THROUGH.
SO, UM, WE HAVE, UH, OUR SOCIAL MEDIA IS STILL DOING PRETTY REALLY WELL AND JUST MOST OF THESE OTHER THINGS ARE UPDATES FOR YOU.
WE ARE STILL CONTINUING TO GET GRANT REQUESTS, UH, FOR SIGNS OR BUILDING IMPROVEMENTS.
UM, OUR OTHER GRANT PROJECTS ARE IN THE WORKS.
THEY'RE GETTING THEIR WORK DONE.
SO MAYBE, UM, SOON WE'LL SEE THEIR FINISHED, UM, PRODUCTS.
AND DID WANT TO ASK YOU ABOUT, UH, AN EVENT THAT IT'S SIMILAR TO THE ONE WE WENT TO IN MAY.
IT WAS BIZ NOW THIS ONE'S BEING DONE BY DALLAS BIZ JOURNAL OR SOMETHING.
UM, IT'S DENTON COUNTY GROWTH SUMMIT.
IT IS ON WEDNESDAY, AUGUST 26TH AT 8:30 AM UM, WE CAN GET TICKET
[01:30:01]
PACKAGES, UH, FOR JUST ATTENDING AND GETS US A TABLE.IT'S AT THE HUB CLUB AT UNT DOCU STADIUM.
ARE ANY OF YOU INTERESTED IN ATTENDING? 'CAUSE I COULD GET US, YOU KNOW, FOUR TICKETS OR WE CAN GET SINGLE TICKETS.
I JUST NEEDED TO KNOW SO I CAN GET THOSE.
SO HOLLY, YOU'RE GONNA GO? YEAH, I'LL GO.
WHAT IS IT? OKAY, ONE MORE TIME.
IT'S A, WHAT IS THE NAME OF THE ACCOUNT ONE MORE TIME? IT'S THE DENTON COUNTY GROWTH SUMMIT.
IT'S ON WEDNESDAY, AUGUST 26TH.
SO I'LL SEND AN EMAIL OUT JUST WITH THE WEBSITE, BUT I DO NEED TO KNOW THIS WEEK PREFERABLY 'CAUSE I NEED TO GET OUR TICKETS RESERVED.
UM, OH, SHE DID, BUT IF YOU DIDN'T GO TO THE BIZ NOW, WEREN'T FAMILIAR WITH THAT.
IT'S JUST, IT'S A LOT OF UPDATES ON WHAT'S HAPPENING IN DENTON COUNTY ON MAJOR PROJECTS AND DEVELOPMENT, COMMERCIAL, RESIDENTIAL, A LOT OF THAT INFORMATION.
SO, UM, IT'S PRETTY, PRETTY INFORMATIVE AND IT'S A GOOD PLACE TO SEE A LOT OF THE BROKERS AND DEVELOPERS WHO ARE ALREADY DOING PROJECTS IN DENTON COUNTY AND GET TO TALK TO THEM ABOUT AUBREY.
IT'S NOT, YEAH, IT'S NOT AN ALL DAY THING.
IT'S ONLY FROM EIGHT 30 TO 11, SO.
THAT'S WHY I THOUGHT IT WAS HALF A DAY.
SO THERE ANY QUESTIONS? DO YOU HAVE ANYTHING? NO.
DO WE HAVE ANY FE ARE YOU DONE? SORRY.
[ Future Agenda Requests]
AGENDA REQUESTS? I AM GONNA ADD THAT WE'RE GONNA HAVE TO DO YOUR, UM, BOARD ELECTION BOARD APPOINTMENTS IN SEPTEMBER AND IF YOU HAVE ALL YOUR APPOINTMENTS, YOU CAN PROBABLY, WE CAN PROBABLY LOOK AT DOING OUR OFFICER ELECTIONS THAT SAME MONTH.IF NOT, WE'LL HAVE TO WAIT TILL OC OCTOBER AGAIN, SO.
ANYBODY ELSE HAVE ANYTHING? NOT NOW.
[ EXECUTIVE SESSION]
I CALLED FOR MOTION TO CON CONVENE INTO EXECUTIVE SESSION AT 7:03 PM UH, TO TALK ABOUT SECTION 5 5 1 0 8 7 ECONOMIC DEVELOPMENT NEGOTIATIONS TO OH 4 2 0 8 SOUTH MAIN STREET DEVELOPMENT SECTION 5 5 1 0 7 2, REAL PROPERTY 9 1 6 US 3 77 AND SECTION 5 5 1 0 7 1.CONSULTATION WITH ATTORNEY GRANT POLICY ENFORCEMENT AND ENFORCEMENT.
SORRY, DO I HAVE A MOTION TO GO INTO EXECUTIVE SESSION? MAKE A MOTION TO GO INTO EXECUTIVE SESSION AT 7 0 3? DO YOU HAVE A SECOND? I SECOND THAT MOTION.
I HAVE A MOTION BY TJ IS SECOND BY TAMMY.
ALL THOSE IN FAVOR RIGHT? VOTE IS FOUR TO ZERO FIVE.
WE ADDED ONE FIVE TO ZERO, SORRY.
[Reconvene into Open Session]
ALL RIGHT.THE MDD BOARD IS NOW RECONVENE INTO OPEN SESSION.
DO I HAVE A MOTION TO RE THE TIME AT 8:30 PM DO I HAVE A MOTION TO RECONVENE INTO OPEN SESSION? I MAKE A MOTION TO RECONVENE MEETING.
ALL THOSE IN FAVOR? MOTION PASSES FOUR TO ZERO.
I DO WANNA MAKE A NOTE THAT TODD LEFT AT 8:12 PM IN EXECUTIVE SESSION.
ALSO, DO I HAVE A MOTION TO GIVE CHRISTINE DIRECTION TO GIVE DIRECTION FOR CHRISTINE TO POSE A LISTING ON NINE 16 US 3 77.
DO I HAVE A SECOND? I SECOND
ALL THOSE IN FAVOR? RIGHT? MOTION PASSES FOUR TO ZERO OR VOTE IS FOUR TO ZERO.
DO I HAVE A MOTION TO AUTHORIZE? WE AUTHORIZE CHRISTINE TO NEGOTIATE AND ENTER A LISTING AGREEMENT IN FOR 2 0 4 AND 2 0 8 SOUTH MAIN STREET.
DO I HAVE A HAVE A SECOND? I SECOND.
[01:35:02]
VOTE IS BOARD TO ZERO.ARE THERE ANY OTHER FUTURE AGENDA ITEMS? ALL RIGHTY.
DO I HAVE A MOTION TO ADJOURN THE MEETING? I MAKE A MOTION TO ADJOURN THE MEETING MOTION BY TAMMY.
MEETING IS ADJOURNED AT 8:32 PM.