I'm going to say that. It's a heart of singing for them. Is it holding down for. It should stay on what you hit it. All right, at 530 we'll call to order the August 20th meeting of the heath NBC and the heath EDC. Our first item is the public comment part is our new member welcome. Great to have everybody on here, really excited. You're coming on at a really good time where action and opportunity is is ginning up. Why don't we start with staff? Do you all mind starting in your introductions and then we'll work our way through the new board. I'm Susan Bruck, you know, sir, that's your work to be done. So, I support working for the next work and the development projects like that. So, you know, Justin is an intelligent board, but if there's anything I can talk about, I'm seeing with, there's questions about, there's a question about the past. You just don't want to really run out of the board. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry. Welcome David. Susan, Suzanne's sold herself short. She knows where all the skeletons are on anything and everything. So just a tremendous resource. She supported the our boards for many years and understands how this supposed to work and what good looks like. So appreciate that. Thank you, Jerry. Yes. You like good. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. thank you. Dylan, can we start on hearing? How about your background, time and heath and interesting that you see? All right, Miles Hunter moved. That starts all right. Miles Hunter moved here in March of 2019 with my wife. Shortly or actually June of 2019, shortly after we got married in March of 2019. Why was born and raised in North Dallas, Plano area. I was born and raised in Lubbock, Texas. We met at Texas Tech and decided to start our family out here. Um, took a while to get her to get out here. And once she did, she fell in love with it. We're currently building our quote, unquote forever home here. And we've been here five years, but hope to be here 50 more God willing. Interest in the EDCs is interest in the community. Like I said, we're gonna be here for a long time and I think it's a pivotal moment for the city to really develop into what we hope it to be and the reason why we moved out here. So just looking to get involved. Cindy Allen, I've been on the board for, I can't remember how long, you'll meet both. Yeah. Rockwell County 94 we moved out here box chase and we built this house and heat the decade ago. So that's how long I've been out here and just like to serve on either board or commission or do something for your community. Thank you, Cindy. Justin Sauners, living heat for about 20 years. We've been on the board about seven. My backgrounds in manufacturing finance and my interest in this EDC was the unique opportunity to get involved in our community. So it's been a pleasure and excited to work with everybody. Just tonight. I'm Mike Salinsky. I moved out here about 16 years ago. I've got three kids in the public school district. I've got one of the VP High School, one at Cain Middle School and one at Amy Park Elementary School. I am kind of a technology in business guy. So I've done all kinds of software companies running, managing, executing, going public, selling all kinds of stuff. And recently I am opening and acting studio over in Rockwall. Super cool. I'm Glenn Hettinger. I'm a retired mergers and acquisitions and securities attorney moved out to Rockwall County 17 years ago, lived in Heath for a while, then Rockwall built a house here five years ago just looking to get active in my retirement. Keep it going. Welcome Glenn. I'm Douglas Barkley. I've been resident of Rockwall County for 22 years and been in Heath. We moved to Heath. Decided we were going to in 2013 bought a house and because Rockwell was getting Rockwell. I mean it's lovely but we loved the the bucolic aspects of Heath and have, I say I have a servant's heart. I've always wanted to participate in however I can to support my community. I was recently on the board of adjustment here and this opportunity I'm excited about. I've been in business for myself for 20 years. I'm an energy efficiency consultant. I'm just happy to be here and look forward to helping us do good things in a controlled and responsible way. Get behind that. I'm Richard Keppi. I go by Rich if you want to call me Richard, I don't care. It doesn't bother me any. My background is with Rockwall County itself has been about 15 years. I moved to Heath 10 years ago and I've been living here ever since and I'm in my last house ever. I'm not going anywhere. My professional background was, because I am retired also, I was a Air Force pilot for 21 years and a commercial airline pilot for 21 years and that's plenty for anybody. And my background in the college was finance and management. And so I finally decided to maybe try and use it. What's your to work? That's for sure. Great. You can see here that as you notice tonight, we have four new members. There was a significant change in the council. I mean, the board composition unique. It's an exciting one that several council members who were sitting on the board relinquish their seats to concentrate on the policy making, which I think we all agree that probably makes a lot of sense these days. And so they're interesting us with vetting and bringing them unique opportunities to support. Of course, formal councilman Chester, we appreciate his time. And then of course, in Memorial and Vicki Wallace, who I served with, we served with, through all three of us in the U of us in 17, is a former vice president of the board and a leader, her all, through three of us, and you of us in 17 is a former vice president of the board and a leader, her character, De Coram and selfishness, really set the example. So we really miss her. So there's big shoes to fill hers, especially the community, lost someone very special there. You know, sure, all of you been exposed to mission statements and how MAMDi-PAMDi or Nebula State can be coming from the business environment and constantly, you know, redoing ours or working with the latest consultant on what it should say or encompass. I actually think this one's really good. It provides us a North Star for what we're supposed to be doing. So when you have all sorts of outside opinions, all sorts of politics behind it. When you read ours, I hope it kind of clears the path. And that's the Heath EDC and the Heath NBC should provide financial assistance for qualified projects in accordance with guidelines. And here's the meaty part that we like. Encourage quality commercial development that expands the city of heat sales and the tax base and contributes to a higher quality of life without altering our culture. So I think that provides, you know, very good direction. And some of the docs that Suzanne sent out earlier, speak to that, the assistance policy and the evaluation criteria. Those are good frameworks to kind of point towards emission statement when it gets more tactical. So I point you to those. From a structure standpoint, forgive me if you all are already from you read the docs, but we'll just hit it briefly is that the there's two corporations. There were, you know, those were in there was a the development corporation actions 1979 gave cities the capacity to set up these corporations and then charge sales tax to fund them with the outlines with the with the initiative of encouraging development. The first type a sales tax, which is half the EDC in the NBC split 1% will get to the next graph that details that. But you, uh, the half percent that goes of type A sales tax that goes to the EDC, which is to kind of develop commerce. It can fund land buildings, equipment, facilities, expenditures, targeted infrastructure and such things. And then you have the type B, the other 50 basis points, that goes into the NBC. And that does the type A projects plus a larger SWAP, the ability to hit the quality of life projects as well. So you develop commerce plus the capacity to make quality of life improvements. And we'll hit some examples as if we get through our project history here. commerce, plus the capacity to make quality of life improvements. And we'll hit some examples as we get through our project history here. Keep in mind the criteria, which is also in the orientation packet is jobs created. Capital investment made by the prospect and of course in ROI, rich back to that finance background. That's to create more tax revenue than we spend on the supporting the prospect. You can see the eight and a quarter sales tax that's charged on the applicable expenditures, and 1% to the city of Heath, 1% to our corporations, 6 and a quarter to the state. We also get a portion of the beverage tax, right? So if you decide to drink it, man, you're helping us out a little bit. Not encouraging that, but just making everyone aware. You can see the sales tax growth in our city. 2019, late 2019, you have the Tom Thumb come online. And we've, of course, that's captured 2020. You have mannies, standard service come online and then probably you know the Tom Thumb reaches full max capacity or scale. Tom Thumb is our largest tax sales tax payer and we're pretty confident in that today. You'll notice though, in the right the past two years and as Tara will hit in our budget, we are starting to top out. And so we're not saying quite as much growth on that top one. You're probably well aware of the in-be-able demographics that's probably why you live here that our community offers. So when opportunities or prospects come to visit with us, we have the strength of being very discerning or picky because of these wonderful demographics. Looking backwards in time, these are some of the projects that we supported underneath our quality of life mandate. Every year we budget about 25% of both corporations, sales tax revenue into CIP, park-related projects. You have working down the list, the Park Pavilion and Tigua Bay, Park Practice Field Lights at Town Center Park, some trail connections where you get excited about get behind those supplementing the path projects in 2018 we founded the town center park design and we've also helped park purchase the right away up in front of the Tom thumb so that didn't get in the wrong hands a few years ago. And so we have control over that to. Uses we see fit is most appropriate for the city. One of the other criteria you see is how many jobs we create. How much when we're looking at a project, how many jobs we either create or re retained. Back when COVID popped up underneath our project to retain jobs criteria, we helped several small businesses in our community bridge the gap when there were so many questions out there. So we distributed about 389,000 to businesses you see here, Rush Creek, he's Salon, Giannis, Octonuts, Lighthouse, when they were kids were at home, people weren't going to Rush Creek. I mean, everybody was, where are we? What's going to happen next? And how would we do with our staff? We were loose staff, can we get them back? All those questions were out there. And so that was, it was a neat opportunity and a tragic situation for us to have a direct impact on the community. Some additional projects we've got behind is the town center master plan and more recently was our partnership with the city to fund the new department of public safety station and the town center park renovation. I'm excited about both the public safety station. We allocated. What about three million to that. Okay, thank you. And on the town center park, we help the city fund the debt service on that project. It's about 350 miles per year. Sure. Some of your traditional EDC projects was the standard service. We've got behind that. That was before my day. I was coming towards the end of it, but I was there to clap when they paid the loan off. They did about a $250,000 loan and a $250,000 grant. They did pay that off early, but I'm sure many of you at Frinkwood did that and enjoyed it as a community hub and restaurant. The other is Hidden Creek. Hidden Creek, we did a ground lease with an option for them to purchase the property at the appraised value when the deal went down. So the city or the EDC essentially had about 83,000 in the dirt. And we monetized that to them when they exercised their option for 630,000 plus fees. So that was a, they got a very advantage advantageous deal, but they were the first mover in the reserve and really set the tone with the kind of look and feel that we like to get there. We'll talk more about that, but we didn't get a lot of sales tax revenue out of that one, but we at least put the flag down and made a beach head on the reserve So where do we kind of stand now? All right, we've got pretty solid pockets. So the EDC has a four million dollar fund balance as the end of our fiscal 2024 year the NBC after supporting the town center park and the is the end of our fiscal 2024 year, the NBC, after supporting the town center park and the first responder facility, we have a million dollars of cash and their other primary asset, which you're familiar with and we'd like to share again, is the reserve. Take a quick sip. In 2017, right before COVID, we did a major rebranding of the reserve. Suzanne was a large part of that, Cindy as well. It was real exciting, and we're very proud of it. You notice that the emphasis on the green, you have a hard copy of our brochure, the tagline, naturally exclusive. And we were about to go to market with that when things got iced. The plant, you can see it's over our lots. It's approximately 25 acres. Hidden creek there on the middle right. As I put it, 4.9 acres I think within the 25 acres. Above and beyond the 25 acres, we still on today. And then Mike's gonna talk about some excitement on a lot more than one a later this evening. More background, our 25 acres, 4.8 acres owned by Hidden Creek. The entire thing is purchased from Rockwall ISD for 436,000 in 2004. And then you have the 46 adjacent acres that Rockwall ISD, we purchased from Rockwall ISD that the city still owns today, that there could be tremendous synergy with eventually. No, the 46 acres just so kind of everyone has awareness on that picture. It's in the top left. So it's like behind the high school for and that I'm kind of the it's not actually the northwest, but the top left of your pictures. When we discuss the opportunity shortly, we part of that transaction. We had a praise done on the land that appraised approximately five million dirt that the NBC owns today. So we got quite an asset to entice the type of development and commerce that we're interested in. The reserve vision, public and private partnerships available development that fits the desired culture. A lot of the adjectives are very applicable. I mean, they mean something to us. Upscale, unique, one-of-a-kind, bikeable, walkable, obviously low water consumption. Prioritizes the needs and desires of the citizens and limited impact on traffic and infrastructure by visitors who come by day, lead by night. Some of the businesses we've gotten to hopper. Sure. So, when we're trying to put together deals or talking to prospects that are interested in coming into the EDC, there's a handful of of levers that we can kind of move in different ways to try to assist them again, keeping in mind, how are they going to create jobs? What's the sales tax that they might generate from the business? What's the property tax that they could generate for the city? And what's the impact to the citizens? Is it something that people living here would find value in? And so when we kind of put it through those discerning concepts, we can help them close their business case to bring their business here using some of these things that are mentioned here. So a land leases is kind of like what was done with Hidden Creek and Standard service. It's where you, I'm sorry with Hidden Creek anyway, it's where you basically rent them the land at a very low cost. This helps them kind of get over the hurdles of building and constructing their business by not having to carry the additional debt that might saddle them if they had to outright buy that land. As you saw, we paid under $500,000 for land that's not worth about $5 million. So we have very little kind of sunk cost in that land and we have very little sunk cost in carrying that land right now, you know, it costs us $30,000 a year to mo that property and that's it. So we don't pay taxes on that, the city doesn't get any tax revenue off of that or whatnot. So our job is to try to figure out how we turn this land into businesses that provide value to the city and provide value to the citizens and return things that will help the cities, you know, coppers for like a better way of looking at it. So we can, you know, rent them the land, you know, for some period of time and then look to sell them once, sell that to them once they kind of get their business up and going. And that's what Hayden Creek did, right? So they rented the land for five years. At the end of the five years, they they closed on that land acquisition. And you know, because the term for kind of negotiated up front, their bank was able to still give them the financing. They had, you know, first right of that. And we actually had a security interest that if they were to default, we actually get the whole property that they constructed on the land. Right. So it's, it's a pretty advantageous kind of situation for us with, you know, we may end up with a building, but, you know, we're ending up with a building that was millions of dollars to build. Loans, we can do these loans in all kinds of creative ways, everything from, you know, 0% interest to tied to specific aspects to, you know, different, different kind of terms, different kind of payment periods. These can be one of the, one of the deals we're looking at, you know, later is kind of terms, different kind of payment periods. These can be one of the deals we're looking at later is kind of alone to help them get over a little gap on their bank financing so they don't have to go to hard cash. Financing on that that helps them out in a big way and they're gonna pay that back as an additional percentage of their sales over the life with their business until that loan is repaid. We also offered them they could pay a lower rate back to us, but then we got a perpetual right of a small percentage of their business. So we can be really creative in terms of what we position and do there. Grant is exactly what it sounds like. It's just an outright cash light. These can be used for marketing and they can be used for co-marketing, it can be used really in any kind of way. Grant's certainly not generally one of our favorite things to do obviously. It's just the pure loss of cash unless there's a good return on that. So shared infrastructure support, this is stuff like we're proposing adding a trail. The business wouldn't necessarily want that trail, but the trail connects the business to something else. It connects, in the case of what I'm going to show you later, it connects their business to an existing trail system and also connects it over to the high school. And so that makes other locks that we have in the reserve more valuable. And they're going to take over maintenance of that trail and maintenance and upkeep along that trail. And they're going to take over maintenance of that trail and maintenance and upkeep along that trail And they're going to landscape along that trail and make it pretty for us, right? So it becomes kind of a win-win where we're using those municipal benefit corporation funds to roll out a trail Which we're trying to do anyway across the whole city of heat And just kind of improve the connection points Tax abatements. This is again While we own the land, they don't necessarily have to pay all the same taxes. So the city can get out of school taxes and they can get out of county taxes and they can get out of city taxes, well, the EDC owns the land because the EDC is kind of the special entity. And so when we put together a land lease, they can effectively abate some of the taxes until that land transfers. So again, it helps that business get over that startup portal, that construction period of time. Specific fee, there are some fees in terms of the city's permitting process that we can abate. There's other fees that we can't abate. And then marketing support is exactly what it sounds like. Brand openings, ribbon cuttings. We have offered sponsorship for, as many of you know in a live chair for a long time, we've always had kind of like the holiday in the park. Kind of stuff, well, the park is supposed to be closed this year, but Hitting Creek is looking to do a kind of holiday event right around Thanksgiving. And so we have offered marketing support for that event in terms of specific things. So we've offered to potentially sponsor Santa. We've offered to sponsor some music. We've offered to sponsor a handful of other things. In return for the city, you know, getting a booth and a tent and getting the opportunity to help share it out. So when we're looking at, you know, at things and prospective businesses, right, we have one prospect that's kind of in the works right now. It's an upscale dining destination. It's got exquisite cuisine. They're talking about a big spacious outdoor patio that actually like goes along the trails that that already exist. So basically people can, you know, ride their golf carts to this restaurant as well. A sophisticated menu kind of blending contemporary dishes with high quality ingredients locally sourced. Exceptional silver churros welcoming ambiance and they wanted to be kind of a spot, you know, obviously that both locals feel comfortable going to every single night or after the event that goes on at the high school, as well as something that people think it is worth coming to heat to go to. So if we take that diagram you had and rotate it on its side, you'll see the runabout in the bottom left. This black line that you see kind of going from the top to the bottom is actually a setback line from the school district for alcohol sales. And you'll see kind of coming in just to the right of that black line on the top. There's like a little gray thing and it comes down and then it zags over to the right and then it zags down to the road. That's actually an existing trail that goes back from Cooney Boulevard back over into Tom Fum. So that trail was put in in last year. So where you see this kind of right where that trail goes, that thing that says Lot A on this diagram, we're looking at, or we have a prospect who's interested in that lot. And it's about 1.7 acres. And so if you're looking at your current diagram, you'll see it's, I don't know, a fork or something like that, acres in terms of how it's mentioned or two and a half acres or something like that. And so one thing we have the ability to do at the reserve is re-plop the property. And so this prospect wanted one and a half acres to put their restaurant. And we wanted them to take over maintenance of the trails and to have their restaurant along the trail. And so what we're doing is we're selling them that one and a half acres and we're kind of giving them the easements and the trail land in exchange for them taking over the ongoing future maintenance of that trail and the landscaping along that trail and whatnot. So that's how we get to 1.7 acres or 1.65 or something like that. This diagram isn't completely accurate with where things are, but you can imagine that that gray hashed line is kind of like a driveway. So it's not really quite in the right spot, but basically the driveway comes in, from CUNY Boulevard, and ultimately we'll have an exit out onto high school drive, splitting the two other lots that we have in that space where other future business prospects can go. And then, you know, so you'll pull it in, there'll be a parking lot, the front of the restaurant, kind of, it's on the north side, which is kind of the left-hand side. And then their back patio is going to be along kind of that tree line and along the path. So, you know, a dining destination that has a beautiful indoor space, that has a beautiful outdoor space that's, you know, working with the existing nature that's already back there, that is adjacent to hitting creek that has kind of you kept in preserve the trees and the nature of that part of the property as well. This is kind of that rendering that this respect that this perspective restaurant has given us for what it might look like. These next couple pictures are some concept drawings. They're working to finalize their final drawings now with their developers and their designers. This project has received preliminary approval from this board to basically move forward on kind of a package of things. It will ultimately have to come back to us for final approval and final kind of sign off on exactly what the package looks like. And we'll get to that in a moment. But here's kind of a handful of pictures. So, you know, again, outdoor patio is kind of encompassing nature, kind of bringing that indoor outdoor piece together. These are just different ideas. Again, natural brown coverings, limited grass that's there escaping, you know, that helps preserve the water utilization. Again, I think they call it what was it calling it like modern chic or modern farmhouse chic or something along those lines with kind of a little rustic flair as well. This is one of the inside diagrams that, you know, they're talking about high-volved ceilings and kind of, you know, but kind of keeping it kind of warm and cozy. These were some kind of more modern potential table ideas, potential, you know, kind of like family style table, big, you know, the ability to support kind of, you know, big community kind of, you know, sit-downs and events of multiple families. That I think if you look at the restaurants around Heath right now, happens quite often. So, you know, there's often, you know, two, three, four, five families that come together for dinner and the kids are off at one table and the adults are at another table, that kind of thing. The person who's behind this is a Heath resident and owns another restaurant. He's a seasoned in a restaurant tour. He has successful restaurants in Dallas and you know, basically wants to, you know, another restaurant, he's a seasoned restaurant or he has successful restaurants in Dallas. And you know, basically wants to, you know, wants to build his flagship restaurant in Heath. He's personally looking to fund the project. The blue and he wants to have kind of that, you know, open, clean, super clean kind of kitchen concept, you know, pizza, pizza oven, which is, you know, kind of a tie to his other restaurants, which are very Italian-based, but this is, you know, we'll have kind of a more expanded menu than just that. Again, just kind of renderings and drawings of what they're wanting to do. And so, you know, from a project perspective, this heat grill, you know, it fits the reserve vision of kind of pulling them together, nature protecting the natural and spec there. Smartcape in terms of the grasses and zerkscapes and whatnot. It's synergy with the trail system. It's preserving the really big trees that we have back in that space. They want to keep those to be the shade. It's keeping traffic to a minimum, right? In terms of just a restaurant flow, they want to be a destination that people want to go to. And the person behind it again, he has a successful track record opening and running restaurants. And he's, you know, he's best at here comparable in many ways to, you know, other pieces that we've put together before. So it has a higher sales tax return than, for example, hidden creek because it's got mixed beverage sales. It's got alcohol sales and it's got food sales, whereas hidden creek doesn't really have sales tax on its on its its venue. There's a an acquisition price for the land that's basically been negotiated. That's what that appraisal that you saw before was about. So we went and got a current appraisal use that appraisal to you know appraise the land that we're going to put together for him in this package and they're offering you know $500,000 which is that market value for that land. Some of those tax abaments like we talked about during that period of time that we own that little piece of that trail that connects to the existing trail over to hot drive to make it easier to get there from walking across after high school, but high school game of any kind or high school practice. We've offered a loan that has repayment terms that are tied to the restaurant success. So a percentage of the top line of the top line revenue. And then something that we have not historically done is we've gotten them to agree to perpetual sales tax reporting so that 30 years from now we can report back on the success of this deal by understanding all the sales tax that they've generated. So the EDC does not have access to individual business sales tax data. Some people at the city have access to that. But one of the things that that that we said is that we're putting together at kind of the five-year point for land acquisition and loan and things like that. It's kind of projected. The overall projection is around second and a half years for a return to the city. But it's structured where the second the door's open, money starts flowing back to the city. So we're using some of these EDC funds to invest in a business to bring this business to bring the quality of life improvements into you know start immediately flowing, you know new sales tax base to the city. Kind of looking at it from a top line perspective, they're expected to generate $80,000 a year in sales tax putting in about $2 million into their construction. Again, we're abating various things, bringing 60 to 70 jobs tied to the restaurant. And again, that quality of off-scale sophisticated dining, rural open space, based sense of community and timing into the trail system. Again, just kind of looking at it. So from a sales tax perspective, it's 80,000 So, the same thing is the same system. Again, just kind of looking at it, right? So, from a sales tax perspective, it's $80,000 that gets put $40,000 to the city, $40,000 actually that comes back to the EDC and NBC. Kind of when they hit that $3.4 million, which is probably a conservative estimate from everything we understand. It's a similar number to what standard service, for example, put together and they paid us back because their actual sales are multiples of that number. Do the size comparison? Two of the properties. On the overall property side, the standard service property, I believe, is 2.6 acres or 2.5 acres so it's a larger property but you gotta keep remember that they've got the pickleball court they've got that kind of the stage and they've got that big outdoor seating so this will be a little bit more compact in terms of I think it's about a 5,000 square foot restaurant and they're looking for another 30 500 to 4500 square feet of patio space. If, if I recall. So they were looking for somewhere around like, you know, 1.3 to 1.5 acres to put the property we ended up deciding on the 1.5 so that they can have, you know, a little bit more setback. We require a little bit farther setback from the road than other areas do. And, you know, the person behind this project wants it to be landscaped so that it just beautifully fits in and like I think he saw from those diagrams they want it to be really kind of a stalwart of the community. All in all you know our land cost behind that one and a half acres is $24,000. We're looking to sell that for $500,000. As part of that, again, we're putting in a trail which is $100,000, we're putting in a loan which is $250,000. Worst case, we're out that trail money. The loan, we get the whole building. Again, in terms of how that works. But the guy that's behind this is, I mean, he's experienced. He knows how to do this. He's got his numbers really bad at down to his food costs and his labor costs and what he needs to price at at. And I think it's put together a home run for what they're trying to do. So we should be seeing this deal back probably within the next month is my guess. We were working with them kind of on that new layout of the lot and so we have to re-plop that lot but we were waiting to kind of re-plop that lot to hear back from their developers that the new layout of that lot works for their restaurant design, works for the parking design, works with the city ordinances on, you know, the parking lane widths and the parking, the number of parking spots that it has to have and everything along those lines. So we've been working with them, getting them all the proper ordinances. They've finalized their design package, they're finalizing their bank lending. They'll be, we'll then look to be finalizing that package here and it'll come back to us for final approval on that. Is there any questions to anything I've talked about about that prospect or that Justin has talked about related to the EDC or NBC. I do. I've got on the tax of baby, the Edelarm tax abatement that were we do we know for a fact that we don't have to they don't have to pay state and county taxes. So we are able to abate the minute the lands taxes during the period that the EDC still owns that land. Okay. The property improvement that gets built, they will have to pay the taxes on the property improvement. Okay, thank you. That's what I was a little confused on that. That's why I was asking that question. Yeah. And then one other thing, and again, I'm just speaking from a new guy's perspective here. So if this is a stupid question, tell me. But one of the other things that, as I read the package before it came in here was that we were trying to, what I'm getting at is how much, so I would look at this and I'd say a great project. I have no issues that. But one of the other things I believe I read that we're supposed to look for things that also get people employment here. So with that being said, that's a stupid question. Because to me, heath people, as you showed us earlier, $200,000 as the average income, I don't think a waitress or a waiter makes that much. And what else do we have besides a manager and maybe the owner? So that was my only question about that. And I don't know how you do, I mean obviously, standard service has the same problems and stuff like that. I don't know if we have to look at that or not, but I'm just asking the question. Yeah, so he's talked about employing students, for example, as to bus to bus to tables to be involved in hostessing. He obviously, a lot of the serving staff probably does not meet that criteria, but I think the general expectation is if people are coming here, then they're actually paying taxes here to from a wage perspective. So it's not necessarily about 60 to 70 jobs for Keith residents. It's about the job creation, which will then ultimately drive a kind of a tax return. Thanks. I just wanted to ask a question. Rich, good question. And the prospect was intentional about a priority on I think local youth being involved in the restaurant and he has a The desire to support veterans as well. He's he's wanted and so that's a unique Not necessarily for this project, but just in general. Is it possible to take a slice of equity in these deals? And they seem like really good deals. So that's what we were trying to do. So on the loan repayment, we were trying to structure him where he either has to pay it off faster as a bigger percentage of his top line revenue, which has early business case implications, or he could pay it off at a lower percentage, but it gave us kind of a perpetual tail. He sat down and as a successful restaurant guy who has other restaurants kind of crunched the numbers and decided that you know, that 10 years faster for him to pay off that thing, he would rather just kind of take that hit. But we tried to create that. When you look at the the EDC and NBC Charter and You look at other cities and how their EDCs work the concept of kind of taking in equity slice or taking a profit share or anything like that is not really something that has existed historically in EDC Concepts, but I think that there's a lot of Business people in this area who enjoy those kinds of concepts and structure a lot of deals with those types of concepts, myself included. And so we kind of, we threw it out there to just kind of see what it took. We're not actually completely sure whether or not we legally can even do that yet, but we kind of tossed it out as a concept to see if it might be something we could do. Obviously, we don't necessarily want pure equity because equity also means liability. But structuring it as a royalty is kind of how we were structuring this as a long term tale royalty. But the prospect was not not interested in that solution. They call this Mr. Wonderful. I think that's the short. Like that. And I think it's a great idea. And I think it's something that we should, you know, kind of keep in our toolkit of. When we were putting together this package, we kind of, you know, came up with all kinds of things, including, you know, obviously giving preferred terms on a land lease. So this is being talked about as renting that land for $3,000 a year for the first five years. There's a $3,000 way under a market land rate. So there's a positive business case impact of that really low kind of land rate. On the flip side of that, that land is sitting completely idle and is just a grassy field right now that we're maintaining. So getting something for that and getting to a point where in seven to eight years, everything that we've invested in this has been returned and frankly out of multiple is a pretty interesting prospect to then get the long-term opportunities that are available for the city. How long does the deal like this take to come together from initial proposition? I mean, I know it's case by case, but if we get a new new interest here is a couple of year process. I think it can move faster. I think Susanne would tell you this one started probably we're coming up on about a year, maybe nine, 10 months. Maybe that, but I've kind of been hedging that here. It takes longer than you think. Hidden Creek took about two years. Standard service took about a year. And it's not really what you want to hear, but reality the way, you know, the municipal government calendar works. And then you put something in their court and they go away for a month or two. It just stacks up quicker than you think it would. Yeah, it's just thinking of replotting the land and then redesigning the facility itself. We've firm that's doing that. Take some time. Yeah. Yeah, so we, I think it was two months ago that we preliminarily basically approved the construct for this deal in terms of the land lease and the loan and the price of the one and a half acres and the trail investment and the, you know, kind of the give of that extra space of the trails and the easements associated with them as part of that, a part of that land deal. So, you know, that was probably two months ago that we voted on and approved that. The month before that, we had kind of a workshop with them the month before that. We kind of had to sit down and discuss and about here's all about the things, like what helps close your business case. The month before that, it was when they actually presented the deal to us. Right, so we're sitting about six months from when they presented the deal to where we are now. And as of, you know, today, I don't know how much I can kind of say until we go into the executive session, but their main financing is looking to, you know, to finalize they had to work with the designers to make sure that what we're proposing in terms of how the lot physically lays out can can be built with the city ordinances and the size that they need to have the successful business and the number of parking. There's been people from the city involved in calculating how many parking spaces are we required to have and back there we've got some special parking designs because we don't want to just have a pure parking lot, right? So they took all that with some of the other stuff with this concept of relaying out the property. Their initial proposal was actually up on the on the circle to have it up on the circle. We ran into a snag with the 300 foot set back line for the school and stuff like that. So you know, it's taken a while for it to come together. We kind of got to, I'd say conceptual agreement. We voted on the conceptual agreement. And then they have to take that back to their designers. They've been weighing out the new physical property, the new design of the property, the parking lot, everything. And then we have to go through the, you know, go through the reply and go through a legal process to draw the document. And then, frankly, once our board approves it, it then has to go to council and council has to approve a group as well due to the dollar values associated with the project. And that sounds like a lot, but historically we've had some things that we got excited about and rushed them in front of the board. And then it's just start picking it apart. I always say it was like watching Shark Tank, you know. So we have a development process that's proving to work well where we have a staff team, a leadership team from the board and get in that room and just workshop, workshop, workshop. So that goes on for like a six months and it's kind of getting to know you too because this prospect they never generally have worked with a government entity because the kind of prospects that you want, one of a kind, mom and pop unique, they're not box retailers or whatnot that come in with their system, go, go and they're used to it. So there's a lot of education that goes into the process too and we try to get all that button in that bit for it comes to you. I think this is obviously really advantageous for business owners to entertain the idea. It's just setting the expectation and the early grounds. It does take a little longer, but look at the advantage you're getting and making sure that we're checking all our boxes to represent the city right. It just has to take time. That's a big part of it is we's really, we do need with prospects. It's set those expectations. We are going to be discerning about what we get behind. And you can tell very quickly where the prospect is. They understand they have a business plan. They've done it before or undercap-a-lice. And so you learn, but the danger is in this long work, if you will, is deal fatigue because you're going month to month. They're back, they're replanting, they're here to design. And so we're doing a promise you staff and members are excited to have more of us now who can meet with the prospect and keep things moving as we all have our day jobs or whatever we're pursuing. So that'll keep momentum behind it, which is important. Yeah. And that can, that's a kind of in the beginning, they were waiting on us. I'd probably say, because even finalizing what our toolkit is and how we could use the toolkit, and then as a board coming to agreement behind what parts of the toolkit we were willing to utilize. And we had to model out. Here's what is if we do nothing and here's what it is if we do this investment and here's what our risks are and here's what the potential return is and here's how long that return is going to take and you know kind of really understanding those pieces which we haven't we haven't shared here but what we have that took us a little while to kind of get get figured out and then get you know an entire board behind and now we're at a point of okay we're all concerned here before before the board turned over we were all conceptually kind of behind it and again had agreed to it and we flipped it to them and said, we're willing to do all these things. We're willing to re-plop this land. This is kind of where it needs to be. These are the requirements. The city has on that. This is the setbacks that we have to meet. The fire requirements, we pulled in the Department of Public Safety to make sure that they have the fire and the police access that they need to have onto the property We've gotten all that and now it's back in their court of, okay, they have this concept that's been agreed to by the city. Can we actually put what we wanna do on the property the way it's been plotted? And so we said, we think you can, but tell us if you can and we don't wanna, we don't wanna go pay for the surveying and pay for the plot, which is part of the deal package that we're bringing forward until we're ready to say, say, go, right? And so, you know, it's kind of been back in back in their wall and with all those changes, they had to go back to their bank and things along those lines as well. They kind of, it kind of goes through these phases where it waits on us a little bit and now we're waiting on them. And I think we should be at a point where when they come back this next time, it's dropped the documents, bring it to us for approval. And I think we've outlined that that potentially can be done in about four or six-week period. So yeah, well thanks to you all on the previous board. Just kind of giving us a layup now. Well, we have an exercise these muscles in a while, but now they're starting to flex, and that's why it's exciting time to join the board. And it's not anything else. This is really, it's different than Hidden Creek. This is more of a daily running business. So this is kind of our first foray into how, you know, how long is this going to take? What are some of the roadblocks we're going to come up against? Because you're in the middle of it. Sometimes you don't realize, well, wait, like the setback or the parking situation or any of that kind of stuff. So after this, maybe we can already know some of those. We've got the key boats. And then, same with the projections and stuff as different businesses come on that's kind of already built and it's a plug and play. The Marces have more developed and repeatable. Yeah. And you absolutely. And the new people on here at Adele, I work with David on staff here. This is kind of a hybrid situation, typically these kind of activities go on side of the business interests, does their scheming and dreaming and planning and designing. And then they bring that notion to the city, usually in the form of a side plan, they've already kind of rendered up their building and made a lot of decisions and then we kind of work that through the development process, through the ARB and then the P and C and the City Council. So this has a lot of, we have a lot of hope that this is going to be a really successful model to use because we're doing we're working collaboratively with them to make a lot of these decisions that they typically would have tried to make a lot of those on their own or lean on their design professionals to give them advice on where to fit the parking and how and what they need in terms of fire protection access and all those kind of things they would be on their own looking through our ordinances and trying to make you know just trying to interpret our rules and then make their design decisions and we've been able to have a lot more of an iterative process with this one and so we're hopeful that it's going to the result of that will be hopefully some smoother sailing as they get through the regulatory process and pulling through the architecture with you board gets a stab at this and then the planning zoning commission and then the city council after you guys finish your part you'll finish your package and then they've got to do the replat and the side plan and all of that. So we're hoping it's gonna be a smooth process because it can get held up at each of those stops. If all the ducks aren't in a row, and it gets to the architecture review board, there can be a hiccup there, they get tabled. It's a two, you know, it takes them two meetings to get through and so we're hopeful that this is like Susie was saying. We've kind of come at a couple of, this will be like maybe our third prospect that we've kind of run through this process. And, you know, things come up along the way and you're kind of realizing, well, you know, this might not have been, we're thankful that we've run all these traps because it, we've kind of kept a couple of things maybe at bay that just went the right time. You should be able to see them. Yeah. Yeah. And so at least you designed it. Yeah. Aaron's undersell and heard about it when here, but she's come to these meetings with an understanding of based on the restaurant size, how many sparking spots we need and you know here's what the setbacks and here's what the requirements are and here's what we might need to potentially apply for a variance on and you know for example the fire access if we weren't getting come up with like the future plan was to have that kind of connection of the hot drive that little hash line that you saw well they would have had to have two entrances and exits onto that property separated by so many feet. Well, if you do that, you'd have now a road or property access right against the trail. And you would have basically a road wrapping around the back of the restaurant, wrecking out the entire patio in this whole kind of ecosystem. So by working collaboratively with the city, we were able to pull in the fire and archol. And he basically said, well, here's realistically how we would really fight a fire there. And here's what I would like to see long term. So tell them when they're designing their parking lot to leave, you know, kind of a throat off of the parking lot for this, this road that when the other properties come in will connect to their throat, right? So they have to kind of have this scoop kind of coming off their parking lap that's going to connect into kind of the other places that haven't been built yet parking lot. But we would you don't get that kind of collaboration with the people from the city at all different levels outside of these workshops that we've done. And that basically allows us to bring, in my opinion, a better property forward because it's taking better advantage of the nature. It's allowing the trails to be incorporated into the site design while ensuring that the safety and whatnot is still being made. So. So saving everyone time and resources at the end of the day might be front heavy, but by the end of it, it's saving everyone time and money. Right. Yeah. And your structure is unique too. Like if you look at Rockwell, they have a fully staffed Rockwell Economic Development Corporation, CEO, staff, real estate guy that work on this. And they also, a lot of the cities have like a developer already in place that has the structure there. I mean, we're not even shovel ready. We're not, you know, a lot of places can come into the shell. So there's just a lot of uniqueness and heat that may make it slower because you don't have that developer that created the structure. You don't have a real estate guy out there putting it all together. So. Thank you, and even. And also, I'm sure many of you have been or some of you have been to council meetings, are canceled to cares deeply about the community. So they will explore issues very intensely. And so something that's sniffing at this, you wanna give the prospect of running start. You don't wanna set about that podium addressing setbacks and then the plaque details. You want to have all that covered and it goes smoothly way ahead of time. Yeah, for example, you know, an 80,000 square foot structure with kind of slab walls came before us. I came on the board about two years ago, and in 80,000 square foot structure with slab walls came before us. And well, it met a lot in terms of positives for the community. The design standards that they wanted for their business case did not really meet with, you know, or did not really kind of match up. What many people would expect or want to see, you know, in e-tore back in that reserve area. And so, you know, kind of kept pushing and pushing and pushing and ultimately it just didn't get anywhere, right? You know, their business case couldn't support a nicer looking facade or design. The business itself, you know, that they were kind of touting generated all these jobs, actually didn't generate any sales tax for us. And so, you know, those kind of prospects come forward because they see, oh, cheap, cheap land, a big amount of land access to the, you know, $200,000 income of teeth and the, you know, the families and the residents that have disposable income to support their business. But, you, but not all the prospects are right, or frankly have a business that really kind of checks the boxes on all these things for us. And so, I mean, this one, it generates up sales tax, it generates that property tax, it generates the jobs, it generates that quality of life, and there's an ROI that's available where in theory, you know, we do another one or two of those and we should be looking at, you know, how can the EDC expand with more land acquisition in the city? Because right now we have this reserve area, but at some point we'll deplete that resource and we have to be sure that we're using our resources that we, you know, are kind of gaining from land value and whatnot to, you know to be thinking ahead for the putler city needs. Good. All three of us, Ms. Suzanne, any staff members, always with the available answer questions, you got email, the roster, cell phone numbers, with phone numbers, feel free to call. Just don't put more than three of us on any email. Right. Thank you. That's the gacha. Right. Are we good? So we moved toward business of the evening. All right. Item 3B. Discussion and action regarding the election of a vice president of the Heath, Municipal Benefits Corporation and the heath economic development corporation. As you've seen during tonight's welcome and orientation, well I'd like to make a nomination. If we open those nominations I'd like to make one for Mr. Mike Zalenskas. He has a strong grasp of our toolset and our strategy but I will open that up to any other suggestions or interests. Great. Thank you. So Mike, let's see. Now I need what do I need? Second, Mike's nominated. Take a vote. All in favor. I. I. I. Right. All right. So you, Madam, Mr. Mike, thank you. Thank you. I appreciate it. Thank you all for the vote of confidence. That's two good work together. All right. Item four, item three, C is discussion of action regarding the minutes of the July 16th, 2024 regular meeting. I'll assume you've read them and I think we do have an edit. A motion to approve them with the addition of Cindy having attended that meeting. I will second that motion with the edit. Take a vote. All in favor, approving the minute as revised. Minutes as revised. All right. Great. I just have it. It's approved. Item 3D discussion and action regarding council staff and board member reports. Suzanne you want to kick us off? Quickly two things, make that three. The presentation and orientation that Mike and Justin gave you tonight is actually going to be given at the August 26th, 27th City Council meeting. Mayor McCleur wants the board chairs to report to the council twice a year on what's going on, which is great. Katie Dyer, our part board chair did it last week. She's a great job. And it was wonderful. So Justin is up on the 27th. And all of you are welcome to come and attend and support him. So also we have been working with an intern all summer to do a commercial space vacancy study and we'll polish that up and bring to you at the next meeting just to show you what space is inheath and what's not inheath. And you know, I get a lot of the calls and usually it's like I want to open a little boat take where you're going to put me is like well we have about 14 hours per feet available to you. So it will help you kind of see your future path in addition to the reserve there's a little bit of space to work with but not a lot. And then lastly we worked with the mayor and we've put together kind of a marketing package for the city overall. Really touting the lifestyle that we have here. And we're going to soft launch it to you guys next month and he wants to present it to the council in the fall. And so you can look forward to that. We'd like your input on it. But you have to be careful. I mean, at 3 a.m. I think about tomatoes being thrown at me when I present something like, bring on more kids for our schools, bring on more things for our traffic, but at the same time, we have a really amazing community and we need to hold cast the Vision High. And so what we stand for it helps you property values in the long run. We will have more development, you know, limited, but you want to cast high for that too. So we're really aiming for like the Hampton's looking field and we hope to present that to you next month if you're good with that. That's all we got. You may not update on the path project. And you can speak that little bit. Yeah. Talk about that. Yeah, I've only been to the one meeting, but I do think there are gonna be some areas where we can help, especially areas where the path goes from our large neighborhoods toward what's going to be the town center at some point. And another thing I hope will work on Mayor was there last time. We can't drop golf carts on our paths. So if you can't drive a golf cart, you're not going to ride your bike up to the Heath, you know, new restaurant because you're just not, because it's too hot. So is there something we can get moving before we, you know, start getting these businesses in in the next year or so to make it allowable to drop the golf carts to get to some of these places we're envisioning. So, but yet there are a lot of places where we'll be able to help maybe fund small areas of the path project. So, yeah, that's been an ongoing clash. People that want to ride drive and then people say it's not safe and people who put their eight-year-old in it and so it'd be great to be a golf cart friendly community. Yeah. The arts and youth arts connectivity is something that's paramount to the citizens for every survey or up in and beast we've got. So supporting that is going to be exciting. Mr. Mayor, do you want to talk about that? Sure. So first off, welcome to board members. Let's do the seal. So very excited to have everybody here. So so in general, the new path program, the steering committee, the chairwoman has has obviously dedicated some new members to a strategy towards looking for private citizens that want to donate with a project funded model to where they're soliciting with monuments in mind so we can try to think outside the box for our city, right? We have limited resources but we have a big idea of what open spaces and connectivity looks like, right? So trying to match that with like what I've heard tonight, it's obviously the medium household income is higher than the normal. We're a very blessed community. And so how do we communicate that to the community in a way that wakes up the community to say, I like to be involved. And I like to do that financially. We have some, we have a very entrepreneurial city and looking for those different types of services and those entrepreneurs that have access to those services. And looking for a very unique collaborative way and we can do that, maybe speed up some things. And Cindy heard me say this, I've lived here almost 10 years and I've seen the master trail. So, I stem and I thought it was a man's someday. And so I think that that's the direction of that steer to that. The second thing in general as Missusia spoke to is the branding and one thing that what the branding is, is just really understanding who we are. And I think all of us understand who we are. But I've always heard we're a premier or a lakeside community, we're a premier community, we're an outdoor community, we're this, we're that. Well, how do we really define ourselves? And so really focusing on we are a premier outdoor luxury community, right? So how do we figure out how we identify that and that's something that Suzanne has been very intentional in doing and trying to figure out how do we do that with our brand, we're a sailing key. But I don't know that everybody in this room is a sailor. So for me, I'm not a sailor, and I'm always like to logo, but I have to go to Rushbury, Yacht Club, so I can get to know the sailing community a little bit better. And so trying to look for those interconnectivies and what our brand is, but also how we connect with those other elements, because as we start to think about who we are, well, we're also in a equestrian community. We're also a sports boat and fishing community. We're also a golfing community. We have two golf courses in Amal Regis. You know, so you'll see that in the coming meetings, but if we can identify ourselves with what you need to do, and we can communicate that effectively through imagery, I think that starts to elevate who we really are as a community. So whether it be attracting businesses or just attracting the buyers, then by the homes, those are two elements that need to be considered. And then also thinking about supporting some of those communities like the Equation and Community, that is open spaces. And really thinking about that community in a way that, hey, you can stable a horse, a mile away from your home, in Dallas Dallas that's not always the case. You have the ability to drive a mile to go get in your boat. That Dallas is not the case. So again that's a little bit of that other element that we're going to be that we'll be looking at as far as who we are as a community and they're really trying to isolate and focus a focal point on the sale and community as that's been the original establishment. But in general, hopefully that's a little bit of clarity that you've seen it and then also let's start socializing that, right? But we are going to be looking for those private funds to support the path road and look for some of these monuments. I don't know if the guys know this, but I've made them do a lot of digging, or better yet, I've got ask them to do a lot of digging in the archives, and find a lot of things that we've spent a lot of tax dollars on, on censure a city entrance monuments and the cities spent tax dollars to go design these things and then they just kind of was landed anywhere. And so kind of bringing those out in the archive and showcasing that and bringing those projects forth is key, I think. And an overall beautification process of the city through public funds. So with that, I yield the floor back to you, Chair. Thank you, sir. I'll leave it to you. If you have a boat or if you're a sailor or if you have horses or just knowing our demographic I would be shocked Katie revealed this just think of that in perspective the path fund collects $8500 a year of contributions $850 a month But we saw a little bit like we launched it in 2019 I'm just shame in the people that own courses and how expensive they are. But you can come out and help the path. There's there's some deep pockets in our community. We know it. So there's a especially, you know, to beautify, as the mayor was talking about, there's a lot of opportunity. We're a target vision buyer. Also, the idea is that Katie was coming up with. Yep. target vision by. So the idea is that Katie was coming up with. Yeah. Like you can have a little coin put in a section up with your name or your kid's name or whatever you want. You know, I've funded this much past. You know, easy. It's like the Disney blocks. Everybody goes back every year and sees their little like brick at Disney. You know, you're walking up and whatnot. I think the other thing that's really interesting about past and I've seen this in comprehensive plan meetings and I think it's been on our agenda one time to see but it'd be interesting to put it back up just for everyone's awareness is our city has a whole bunch of trails and sideways or sidewalks but none of them connect. So it's like a line here and a line here and a line here and a line here and just these little segments that connect all these that would allow you to get long, long ways from one neighborhood to another are just missing. So you know, a lot of times when we're talking about these like trails and paths, it's not about putting a trail in down some major road for miles and miles and miles, it's about we need, you know, a tenth of a mile and we can put this neighborhood and this neighborhood together and this neighborhood's already connected to these three other neighborhoods, right? And so, you know, when we think about how can our kids get safely to school? How can we, you know, potentially get to our friends' house in ways that aren't always driving on the roads? How can we be more outdoors and intentional walking around our neighborhoods and really just kind of beating our neighbors? It doesn't necessarily take a lot to connect these little segments. We have a lot of these little segments that are needed, but each little segment kind of expands that network quite a bit. So it'd be interesting to see making those little trail and sidewalk connections connect through this through this project you bring a lot more people together. Aaron, how to do things. I just wanted to give you on if they have come before the board before and talk to you a little bit about some of the development that's happening on horizon over in the area where there's several concentrated medical operations. So if you drive down horizon toward Rabbit Ridge, you're going to see a bunch of dirt turning over there. And I just wanted to bring the brief, like you guys know what's going on, the status over there. We have two medical disciplines that are, we have groundbreaking for them in July, when it was a hundred million degrees outside. But they are two that are underway. One is the clear sky rehabilitation hospital, which is a physical rehab for if you have been treated in a hospital and need to discharge from a hospital, they're already going home yet. This is, they're bringing one of those facilities to Keith and they are underway on that project and I think their hope is to have that opened by this time next year. So it's an aggressive project and they are, they've done tons of these across Texas and that across the country. So it's a well-established brand anyway. So that's what's going on closest to 549. That's the northern one, close to the Mahalmi building. And then the one farther south, I think that south, everything's crooked and heave, but as you get closer to Red Ridge, that is Dr. Sand Knox Medical Group. As a purchased that whole track of land, you'll see some of the dirt is already turning, they've done some tree things that we're working with them on sorting that out. So anyhow, they are going to be developing a medical clinic building for his practice, which is, what's your doctor, San No, you ask, no. Your doctor, tonight, put some of that practice. When, when, doctor, when, San No, when, that was a hit the violation. Probably on this. Yeah, definitely. I know we're going. There are several doctors, doctors who are residents of heat, who have that, who are part of the effect. So, you know, I want to let you guys know that those are going on. So there is some of them. And my doctor's there too. Well, I would like to go through any of those. You can actually expect some work. I just want to go to Austin's and do we all have to do this? No, we're going to skip that part of the meeting. What do you mean see? Oh, really? Anyhow. Excited. We talk a lot about CUNY in the town center, but that's another part of our community. That's really kind of blowing it down on the medical side. And with that medical traffic, it opens up to a little cafe or something that we know that sandwich shop. Yeah, really good, but that's a good traffic up there. It's an employment base to that day time playing out to all drive into Rockwell. If you want. Thank you. to the day time playing out to all drive into Rockwell. Thank you. Thank you. Anything else? Okay. The agenda item three, presentation, discussion and action regarding fiscal year 2025 budget for the he's municipal benefits Corporation and the Hease Economic Development Corporation. Terry, your turn. You wanna be very good at this. I don't wanna hang you up. Got you. Okay, so last month I draw a proposed budget and through the board. Three of you have seen it before. I did. Fates that proposed budget itself. The public at it. It's very similar to the prior years. It's not a whole lot of change. As Justin had said earlier, the proposed beginning budget for the new fiscal year is going to start for EDC a little overillion. It sells tax base that is the income for the EDC and NBC. Expenditures those change slightly due to last year the shift. We had moved some things from NBC over to EDC. We moved those back this year. The reason for the change from last year moving things from NBC to EDC was because the NBC hoped for $3 million for the DPS station. So we just shifted everything back like it was before. And expenditures, we have $198,000. That large expenditure is the 20% of the actual sales tax from the prior year. Now for the three board members that saw this last month. That did change. There was an error in the calculation. So it is now correct. It has went down a little bit, but wanted to make sure the y'all are aware of that. Go ahead. Yes. for details on once we do give those funds to parks, how that's broken down and utilized. I do think we can be broadly comfortable right now that it's going towards the town center park. First some things, shade related items, covering the pickle ball courts and that. So there's a chock's gonna be going there versus split off and we don't exactly which buckets it goes towards. But I think a large portion is to support the town. So the part, sorry, Terri. No, no, don't find that. So here's the NBC. There's 1.2 million is the proposed beginning balance. Sales tax, Same thing. And interest it is less that's due to the fund balance and a lot lower. You have the same hundred and ninety eight thousand transfer. The one difference the NBC does have debt the $473,925. That is their portion that they agreed for the parks for the 2023 bond. The major expenditures. For EDC and NBC, it's the 25% transfer and then the NBC side is the debt. EDC does not fund any of the debt. Hey, that. I'm your major revenues, sales tax and interest. These are some of the expenditures, the MDC landscape. That is something that NBC pays every year we have the transfer and then the NBC has the town center contribution towards the debt. There's a recommended fund balance of 25% at the end of fiscal year 2425. It is projected the EDC will have a little over 1000% fund balance and NBC will be at 122% fund balance. So very healthy. So these are the transfers that you have made from EDC and NBC since fiscal year 2021. Up until the proposed 2425. This is each year. And that's it. The budget has Roon or it has captured the enhanced mowing the reserve on the MVC side. Yes, sir. Okay. So we're going to tackle the Indies On the NBC side, yes sir. Okay, so we're going to tackle the Indies and the stack tackled the open spaces. More frequently. Yes, Suzanne had sent me a message and we did increase that. So yes, thank you for bringing that. That was another major change. It increased it by about 10,000. On the NBC side. That is your line item for annual maintenance. It's at 38,000 this year. Great. Any additional questions for Tara? Please. To go through the additional maintenance that you just converted. Go through it. Yeah, just explain it. Yeah, so currently, D&D is kind of mowing the setback, maybe up to the sidewalk a little beyond it in the reserve. We'll show you. Six times a year. Six times a year. Go ahead. So this increase is going to 11 plus there. And the tidy up. If you drive back through there, you'll see that the grass and even some of the weed starts to get elevated and tall as you have the open areas. And so they're going to hit that 11 times here. We have some optionality. So even though it's not irrigated, you're like, hey, 11 times maybe too much. It's July, it's not growing. We can talk with work with D&D on that and adjust the budget or adjust the frequency. But right now that's an intended plan to get that primed in a good shape. What's current about the law that's going on? 38,000. 38,000. 38,000. It's under line. I am 585. 585, 242. It's enough of an open space. It's going to reside, you know, a zero term or shredder. It's super secure. I think for example, like along the sidewalks in the trail, they've been maybe going like one mower with and over. And then since it's only being done every like six weeks or so, like there's time when it starts growing or over hanging the sidewalks and the trails and so it's, I think some of it is designed to, especially with the restaurant prospect and what not coming to ensure that that trail is more usable and that the property presents itself better. There's a casual piece, you know, brunette or something like that. If you moat, they would show that they're quite good at that. Actually, we provide feed prevention. If you mo it, program, they would make sure they're quite good at that. Actually, we provide feed prevention. The grass will do better in the weeds. We'll serve it from that. So there's kind of a don't benefit from sort of certain problems. Spread it. I just asked one question. Just out of curiosity. Why did our potential sales rep sales tax revenue go down? What happened there? Just out of curiosity. We just JD have a better, I mean, if... I mean, I just didn't know if a big something closed down or... Yeah, the sales tax is really not really capable of policy. So we can make a difference from year to year. And what I would have thought of for me is what I'm doing, um, projects and public policy, but it's not going to get what the, um, what the inflation factory is. And then if there's new business, it's possibly coming on and then that's something that you can also factor into that overall variable for the social sex revenue, but it's, yes, it's pretty volatile. Okay. There's based on projections that have increased from year to year, but I think here recently just looking at how things are going to look like. So basically because of the economy, what you're saying? Yeah. OK. So how many of us? 200,000 out of a year, we're not spending enough. So we're not spending it as much here. A lot of it is spent. I think some of the stats are like the people in need have the highest per capita spend on restaurant and dining for the Dallas Metroplex and something like what was it like 94% of it is spent outside of the well it brings up another question and I've always had in my mind why is it whenever you type in online okay anybody got an answer for that how we can get that to be go to eat yes so some So some years back, we had a study done. So even though when you puculate your zip code, and it does come up rock wall, Keith is still getting the cell stacks. It is based on the actual street information. Okay. That's what information was relayed to us. I was changed it but I just was curious. No absolutely but it does but we have been informed that it truly even though it may come across as rock wall, it is truly coming to Heath. If that address is truly in Heath. On that note, on the south part over in the Heath Gopnyoc club, it's 75126 decoding as 40 and the address will actually decode as 40. Do we know if that's going to 40 or he? I will have to check, but I can look into that. Yeah, because the city that populates even though it's in the city of he that will it populates forney as the city via usps. And I'll just, he's golfing y'all clips, literally everything past that populates his forney. Yeah, that likes the heat, et cetera. All of that. Yeah. Thanks, boss. All right, it looked good. I, Justin Sauners, president of the EDC NBC, make the motion to adopt the resolution HEDC-240820 for fiscal year 2024-2025. If I can get a second. Second, but correct your resolution. All right. Corrected resolution number. Is it the same for the EDC and the NBC? 24820. Thanks. Thank you. Thank you. Thank you. Hold on, Gay. I'm not a sequencer. I have to suck it. Which one was first? EDC is first. Okay. Now, so Dr. Bergs' solution. HEDC 240820 for the fiscal year 2024-25. I had a second from Cindy. All in favor. The next budget is I, Justin Saunders, President of the EDC, NBC, make the motion to adopt the resolution hmbc-24820 for the fiscal year 24, 24, 20, 25. If I could have a second. Second. Good. Doug, Mr. Barclay was first second. Thank you all in favor. Any opposed? None. Budget is passed. Thank you very much. Good job, Tara. I'm going to go in there. I'm going to go in there. I'm going to go in there. I'm going to go in there. I'm going to go in there. I'm going to go in there. I'm going to go in there. I'm going to go in there. I'm going to go in there. I'm going to go in there. I'm going to go in there. I'm going to go in as a group. We do not record it. It's not posted outside and it's where you talk about confidential matters like the finances of a prospect or what you're planning on giving him. And so anything that is said in executive session does not leave executive session. Thank you. And of course, you know, transparency is something that the council's very much behind. It's critical you've seen more of it. And so are we. But there's times that you need to go an executive session to discuss, you know, deals, the risk to them or a prospect that you don't want to let the cat out of the bag and put them in a disadvantage and that sort of thing. So let's go there. So, all right, in accordance with Texas Government Code chapter 551 sub chapter D, the board will recess an executive session, close meeting to discuss the following. 4.855.087 to discuss or to deliberate and deliberate regarding commercial financial information that the HNBC and the HNBC have received from a business project that the HNBC and HNBC seek to locate, stay or expand in the city of heath and with which the HNBC and the HNBC are conducting an economic development negotiations and or to deliberate the offer of a financial or other incentive to the business prospect regarding project reserves. So that's at 703 in an executive session. Mike, do you want to update us on your dialogue? Do you have a warning turn on? Oops. Oops. Be through it. Dead. I'm going to go back to the point. We through it. Did. Do I need to read it back? Are we good? Okay. In accordance with Texas government code 551, the board will reconvene into regular session to consider any action. If any, on matters discussed in executive session. So in 731, we're back in open session and we have no action to take this evening. If that's nothing else, we will adjourn. We good. All right. At 731, meeting adjourned. Thank you. Welcome, everybody. Welcome.