Aug 18, 2026 City Council

[CALL TO ORDER]

[00:00:06]

OF THE WACO CITY COUNCIL 2026 TO ORDER AT 3:01 P.M. WELCOME TO THE WORK SESSION OF THE WACO

[WORK SESSION]

WE HAVE NONE TODAY. SO WE'RE GOING TO GO AHEAD AND MOVE ON TO THE WE'RE GOING TO RECESS REGULAR SESSION AND CONVENE INTO WORK SESSION WITH THE REPORT FROM CITY MANAGER RYAN HOLT. CITY MANAGER. HOLT. YES, SIR. MAYOR AND COUNCIL, GOOD AFTERNOON, AND WELCOME TO THOSE JOINING US IN THE AUDIENCE AND ONLINE. WE HAVE NO CHANGES FOR YOU ON TODAY'S AGENDA. MINUS ONE REQUEST OF A PUBLIC HEARING TO WITHDRAW. AND DIRECTOR DEVELOPMENT SERVICES CLINT PETERS WILL GO OVER THAT WHEN HE COMES UP A LITTLE LATER. UNDER EMPLOYEE RECOGNITIONS.

MAYOR AND COUNCIL FOR EMPLOYEE RECOGNITION DAY. I'M PLEASED TO PRESENT TO YOU OUR INAUGURAL CITY 360 GRADUATING CLASS. THAT WILL BE COMING UP IN JUST A MOMENT. THIS PROGRAM WAS CREATED AS A WAY FOR THE CITY TO DEVELOP LEADERS INTERNALLY BY INVESTING IN THEIR PROFESSIONAL DEVELOPMENT, BROADENING UNDERSTANDING OF HOW THE CITY OPERATES, AND EXPANDING THEIR COWORKER NETWORK. FOLLOWING AN APPLICATION INTERVIEW SELECTION PROCESS. THE PROGRAM RAN FROM JANUARY THROUGH JULY 2026, WITH 11 STAFF MEMBERS COMPLETING THE PROGRAM. THE CURRICULUM INCLUDED TRAINING AND COMMUNICATION STYLES AND STRENGTHS BASED ON LEADERSHIP, SELECTING AND MEETING WITH A MENTOR, TEN CITY ACADEMY SESSIONS, AND CAPSTONE PROJECT TEAMS. THE FOUR PROJECTS THIS YEAR INCLUDED INTERNAL COMMS FROM FRONTLINE EMPLOYEES, OPEN AIR VENDING PROCESSES, CREATION OF AN EMPLOYEE MENTORSHIP PROGRAM, AND DEVELOPING AN INTERNAL WORKFLOW WORKFLOW PROCESS. BEFORE WE RECOGNIZE OUR GRADUATES, WE HAVE A HIGHLIGHT REEL TO SHOW YOU FROM CITY 360 2026. CITY 360.

ALL RIGHT. ALL RIGHT. SO WHAT WE'D LIKE TO DO IS WE'D LIKE TO CONGRATULATE AND RECOGNIZE THE 2020 6360 CLASS. WE HAVE A CERTIFICATE IN PEN FOR EACH GRADUATE. WHAT WE'LL DO IS I'LL GO DOWN AND THEN WE'LL HAVE THE CLASS COME DOWN TO THE PODIUM.

I'LL ASK HUMAN RESOURCES DIRECTOR, MISS YOU TO RECOGNIZE AND INTRODUCE OUR GRADUATES.

AFTER WE GET A CERTIFICATE AND A PEN TO EACH GRADUATE, WE'LL COME UP. WE'LL BRING THE WHOLE TEAM UP AND GET A PICTURE WITH THE COUNCIL, IF THAT'S ALL RIGHT WITH YOU ALL. HELLO. I'M MISSY. THANK YOU, RON, FOR THAT INTRODUCTION TO OUR PROGRAM. I HAD THE PRIVILEGE OF WORKING ALONGSIDE OUR DEPUTY CITY MANAGER, DEIDRA EMERSON, AND OUR LEARNING AND LEARNING AND DEVELOPMENT MANAGER LISA JONES, AND MANY OTHERS TO BRING THE VISION OF CITY 360 TO LIFE.

IT'S EXCITING TO SEE OUR FIRST CLASS COMPLETE THE PROGRAM, AND I LOOK FORWARD TO SEEING THE IMPACT FOR YEARS TO COME. SO AT THIS TIME, LET'S HONOR OUR GRADUATES. CRYSTAL JONES NEIGHBORHOOD ENGAGEMENT. ANTHONY. I'M SORRY, CRYSTAL. ANTHONY. NO, I APOLOGIZE. YOU 123. BRANDY LAHUTA CUSTOMER ENGAGEMENT. ISAAC BURCHILL, DEVELOPMENT SERVICES. JORDAN

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BLISS. HUMBLE LIBRARY AND CULTURAL ENGAGEMENT. SORRY. STEPHANIE MATTHEWS, CUSTOMER ENGAGEMENT. JOHN CROSS, DEVELOPMENT SERVICES. SECOND BEST MUSTACHE IN THE CITY.

PLEASE JOIN ME IN CONGRATULATING THE FIRST CITY 360 CLASS. IF Y'ALL WILL COME ON STAGE NOW TO TAKE A GROUP PHOTO. WHERE DO YOU WANT US, RON? UP HERE ON THE STAGE. ON THE TOP. ALL OF US AT THE TOP. YEAH. ALL OF US. SO? SO YEAH, I. GOT. YEAH, EVERYBODY BEHIND.

YEAH. YEAH. COME UP A LITTLE BIT. YEAH. THERE OF THAT. SOME OF Y'ALL COME IN FRONT. YEAH, YEAH. YEAH. YES. YOU GOT. EVERYBODY. ISABEL. LET ME, LET ME. THAT WAS TOO TIGHT. PERFECT.

CAN Y'ALL FOUR STEPS THAT WAY. EVERYONE. EVERYONE EVERYONE. SORRY. GOOD LORD. YES. THAT'S GOOD. THAT'S BETTER. JORDAN. YEAH. THAT'S. EVERYBODY. LOOK HERE. READY? ONE. TWO THREE.

THANK YOU. ONE MORE. 123. OKAY, GREAT. THANK YOU.

I TRIED TO GET SOMEBODY TO GET SOME RISERS, BUT THAT'S. ALL RIGHT. THANKS

[00:10:05]

AND I WOULD BE DEFICIENT IF I DIDN'T SAY A FEW THINGS ABOUT HIM, MUCH TO HIS CONSTERNATION, AS WE BEGIN THE TASK OF TRYING TO FIND A REPLACEMENT FOR PAUL, IT BECAME INCREASINGLY CLEAR THAT PAUL IS THE PROVERBIAL UNICORN. HE HAS SEEMINGLY FORGOTTEN MORE ABOUT STREETS, WATER, WASTEWATER, STATE LAW GOVERNING MUNICIPAL OPERATIONS AND MUNICIPAL FINANCE THAN MOST PEOPLE WILL EVER KNOW IN THE FIRST PLACE. BUT PERHAPS MORE IMPORTANT THAN THE BREADTH OF HIS KNOWLEDGE IS HIS ABILITY TO MAKE THAT KNOWLEDGE USEFUL. IN A WORLD WHERE THERE SEEMS TO BE AN EXCESS OF OUTRAGE AVAILABLE TO JUST ABOUT ANY ISSUE, PAUL HAS THE UNIQUE ABILITY TO DISTILL EXTRAORDINARY, COMPLEX MATTERS INTO CLEAR, UNDERSTANDABLE DECISION POINTS, AND HE DOES IT IN A WAY THAT REDUCES THE ANXIETY THAT OFTEN COMES WITH THINGS THAT ARE UNFAMILIAR OR COMPLICATED OR, FRANKLY, SIMPLY DIFFICULT TO UNDERSTAND. THAT COMBINATION OF KNOWLEDGE, JUDGMENT, AND TEMPERAMENT IS RARE, TO SAY THE LEAST. MORE IMPORTANT THAN PAUL'S TECHNICAL AND PROFESSIONAL ABILITIES, HOWEVER, IS THE WAY HE TREATS PEOPLE AROUND HIM. PAUL'S PAUL CONSISTENTLY EXTENDS GRACE AND GRATITUDE TO THOSE HE WORKS WITH. I'VE WATCHED HIM MENTOR PEOPLE THROUGHOUT THIS ORGANIZATION, NOT BY SEEKING ATTENTION OR TAKING CREDIT, BUT BY OFFERING THOUGHTFUL COUNSEL, SHARING WHAT HE KNOWS, AND GIVING PEOPLE THE OPPORTUNITY TO GROW. THERE ARE NUMEROUS LEADERS, BOTH HERE AND ELSEWHERE, WHO ARE BETTER AT WHAT THEY DO, BECAUSE PAUL TOOK THE TIME TO INVEST IN THEM.

MANY OF YOU HEARD ME SAY THAT BECAUSE GOVERNMENT IS BUILT AROUND PERPETUAL INSTITUTIONS, IT CAN SOMETIMES BE DIFFICULT TO RECOGNIZE THE PROGRESS WHILE IT'S OCCURRING. THE WORK HAPPENS YEAR AFTER YEAR, PROJECT AFTER PROJECT, AND OFTEN ITS TRUE SIGNIFICANCE CAN ONLY BE SEEN OVER DECADES. PAUL KANE HAS SERVED TEXAS COMMUNITIES FOR MORE THAN 30 YEARS. IF YOU DO THE MATH, THAT'S MORE OF HIS LIFE THAN NOT SERVING. AND WHEN YOU LOOK BACK ACROSS THOSE DECADES, I THINK THE MEASURE OF THAT SERVICE BECOMES PRETTY CLEAR.

EACH OF THE COMMUNITIES PAUL HAS SERVED IN IS BETTER BECAUSE HE WAS THERE. AND THANKFULLY, WACO WAS ONE OF THOSE COMMUNITIES OUR STREETS, OUR INFRASTRUCTURE, OUR ORGANIZATION AND OUR COMMUNITY ARE BETTER TODAY BECAUSE PAUL KANE CHOSE TO SPEND AS PART OF HIS CAREER HERE. AND THOSE OF US WHO HAVE HAD THE PRIVILEGE OF WORKING ALONGSIDE HIM ARE BETTER FOR HAVING KNOWN HIM. PAUL DOESN'T PARTICULARLY ENJOY PUBLIC ACCOLADES, WHICH MEANS HE'S PROBABLY ALREADY WISHING I'D STOPPED TALKING A COUPLE OF MINUTES AGO. SO I'LL HONOR THAT PREFERENCE AND SIMPLY ASK, IF YOU RUN ACROSS PAUL OVER THE NEXT COUPLE OF WEEKS, TAKE A MOMENT TO TELL HIM THANK YOU. THANK HIM FOR THE MORE THAN 30 YEARS OF SERVICE TO COMMUNITIES ACROSS TEXAS, THANK HIM FOR WHAT HE'S DONE FOR WACO, AND THANK HIM FOR THE EXAMPLE HE HAS SET. FOR THOSE OF US FORTUNATE TO HAVE WORKED ALONGSIDE HIM, PAUL, ON BEHALF OF THIS ORGANIZATION, THIS COMMUNITY, THANK YOU FOR YOUR SERVICE, YOUR WISDOM, YOUR FRIENDSHIP, AND FOR LEAVING THIS PLACE BETTER THAN YOU FOUND IT. WE WISH YOU THE VERY BEST IN WHATEVER COMES NEXT. PLEASE JOIN ME IN THANKING PAUL KANE.

MAYOR. YOU GOT IT. YOU GOT A MEETING TO DO HERE. SO LET'S LET'S ROLL THIS OUT. ALL RIGHT, ALL RIGHT. WELL, I'LL JUST ADD AND EVERYTHING. RYAN, YOU HIT THE NAIL ON THE HEAD ON ALL POINTS. AND PAUL, OR AS I LIKE TO CALL YOU, CITIZEN KANE, YOU'VE ALWAYS BEEN GREAT AND YOU'VE BEEN SUCH A GREAT ADD HERE TO THE CITY OF WACO. IT ALWAYS SEEMS LIKE IF WE HAD A PROBLEM WITH INFRASTRUCTURE THAT WAS KIND OF WEIRD, YOU WOULD YOU WOULD STEP IN AND BRING THIS WEALTH OF KNOWLEDGE THAT YOU HAVE STREETS, YOU BRING IN THIS DEAL YOU HAD. YOU ALWAYS KNEW THE WEIRD PARTS AND HOW TO NAVIGATE THOSE. AND JUST ECONOMIC DEVELOPMENT, LEGISLATIVE ETJ JUST GOING DOWN THE LIST, BUT YOU ALWAYS DID IT WITH A LEVEL OF KNOWLEDGE, DEPTH OF KNOWLEDGE AND HUMOR, WHICH I LOVE YOU. YOU MADE YOUR POINT IN GOOD, IN GOOD HUMOR AND GOOD FAITH, AND WITH A LEVEL OF INTELLIGENCE THAT WAS ALWAYS WELCOME AT THE TABLE.

AND I'VE ALWAYS WANTED TO KIND OF IGNORE BECAUSE IT'S HAPPENED ABOUT A YEAR AGO WHERE YOU SAID, YOU KNOW, YOU'RE PROBABLY GOING TO WIND IT UP. AND I JUST HAVE BEEN IGNORING IT BECAUSE I DON'T WANT IT TO COME. BUT ANYWAY, REALLY APPRECIATE YOU. AND I THINK YOU'VE BEEN ON STAFF MOST OF THE TIME THAT I'VE BEEN ON COUNCIL. SO YOU'VE YOU'VE BEEN PART OF THE SCENERY FOR A LONG TIME AND I APPRECIATE YOUR YOUR INPUT. WE'RE GOING TO MISS YOU FOR SURE. MAYOR. I HATE TO SPEAK AFTER YOU. HOWEVER. ONE OF THE THINGS THAT PAUL LIKES OUTSIDE OF MUSIC IS A GOOD QUOTE FROM ABRAHAM LINCOLN. AND I THINK THE ONE THAT DEFINES YOU AND THE WORK THAT YOU'VE GIVEN TO THE CITY OF WACO IS LINCOLN SAYS, CHARACTER IS LIKE A TREE AND REPUTATION ITS SHADOW. THE SHADOW IS WHAT WE THINK IT IS, AND THE TREE IS THE REAL THING.

[00:15:03]

THANK YOU. PAUL, THERE ARE TWO INFORMAL REPORTS ON YOUR AGENDA. ITEM 488 COVERS THE CITY'S THIRD QUARTER INVESTMENT REPORT PROVIDED BY HILLTOP SECURITIES. ITEM 489 PROVIDES YOUR JUNE 2026 MONTHLY MANAGEMENT REPORT. THIS REPORT INCLUDES MAJOR FUND ANALYSIS, ECONOMIC OUTLOOK SUMMARY, AND A CIP UPDATE. THERE ARE 18 RESOLUTIONS ON TONIGHT'S AGENDA. I'LL HIGHLIGHT A COUPLE ITEMS 503 AND 504 APPROVED TWO RESIDENTIAL TAX ABATEMENT AGREEMENTS FOR NEW HOMES BUILT IN WACO'S CORE BY NEIGHBORWORKS. EACH OF THOSE HOUSES WILL HAVE AN ANTICIPATED APPRAISED VALUE OF $250,000 UPON COMPLETION. BETWEEN THE TWO PROPERTIES, AN ANTICIPATED $9,803 IN TAXES AND FEES WILL BE FOREGONE BY THE CITY OVER THE FIVE YEAR PERIOD, AND IT'S AN EXAMPLE OF THE COUNCIL'S CONTINUED WORK TOWARDS HOUSING. ITEM 508 AUTHORIZES THE ACCEPTANCE OF A $785,000 FEDERAL AVIATION ADMINISTRATION INFRASTRUCTURE GRANT FOR THE AIRPORT MASTER PLAN UPDATE. THE UPDATE TO THE AIRPORT MASTER PLAN WILL EVALUATE THE AIRPORT'S EXISTING FACILITIES, OPERATIONS, AVIATION DEMAND, DEVELOPMENT NEEDS AND LONG TERM INFRASTRUCTURE REQUIREMENTS. THE PLANNING PROCESS WILL ESTABLISH ESTABLISH A COORDINATED FRAMEWORK FOR THE FUTURE DEVELOPMENT OF WACO REGIONAL AIRPORT AND WILL INCLUDE AN UPDATED AIRPORT LAYOUT PLAN REFLECTING RECOMMENDED IMPROVEMENTS AND DEVELOPMENT PRIORITIES. THE GRANT INCLUDES A 5% LOCAL MATCH OF $41,000, FOR A TOTAL PROJECT COST OF $826,000. THERE ARE SEVEN PUBLIC HEARINGS THIS EVENING. DIRECTOR OF DEVELOPMENT SERVICES CLINT PETERS WILL GIVE AN OVERVIEW OF THOSE PLANNING PUBLIC HEARING ITEMS DURING THE WORK SESSION. THERE ARE 11 ORDINANCES ON THE AGENDA FOR INDIVIDUAL CONSIDERATION, THE FIRST TO COME TO YOU ON FIRST READING, AND THE REMAINING NINE ARE ON THE SECOND READING. AND IF THERE ARE NO QUESTIONS THAT WILL END THE MANAGER'S REPORT. ANY QUESTIONS FOR CITY MANAGER HOLT ON THE AGENDA FOR TODAY? OKAY. WE'LL MOVE TO THE CONSENT AGENDA, WHICH INCLUDES 2026, 495 AND RESOLUTION 2026 496 THROUGH 512. ARE THERE ANY ITEMS THAT COUNCIL WOULD LIKE TO REMOVE FROM THE CONSENT AGENDA? THOSE ITEMS? ALL RIGHT. THEN WE'LL WE'LL PROCEED WITH THOSE STATED RESOLUTIONS. AND NEXT ITEM ON THE AGENDA IS WORK SESSION ITEMS 2026 490 THROUGH 2026 493. CITY MANAGER HOLT, PLEASE INTRODUCE FIRST WORK SESSION. THANK YOU, MAYOR AND COUNCIL. THE FIRST WORK SESSION IS ITEM 400 90CFCFO AMENDING. DIRECTOR OF FINANCE COLIN BOOTH WILL DISCUSS THE PROPOSED 2627 OPERATING BUDGET AND THE CAPITAL IMPROVEMENTS PROGRAM. THE BUDGET WAS FILED ON AUGUST 6TH AND IS AVAILABLE ON THE CITY'S WEBSITE. MR. BOOTH. ALL RIGHT, GOOD AFTERNOON, MAYOR AND CITY COUNCIL. SO, AS YOU KNOW, WE'RE NEARING THE END OF THE BUDGET ADOPTION PROCESS.

IT'S A LONG PROCESS THAT STARTS IN FEBRUARY. AND AS YOU ALL KNOW, WE HAD A BUDGET RETREAT TO DISCUSS THE BUDGET. AND THEN WE'VE HAD MULTIPLE BUDGET PRESENTATIONS WITH YOU ALL AS WELL. SO WE'VE GOT THIS AGENDA ITEM ON THE AGENDA. JUST IN CASE YOU HAVE ANY ADDITIONAL FOLLOW UP QUESTIONS OR DISCUSSIONS WITH REGARD TO THE FY 27 BUDGET. AND THEN MY NEXT SLIDE, IF THERE'S NO DISCUSSION OR QUESTION ITEMS, IS JUST KIND OF A LOOK AHEAD AT WHAT'S GOING TO COME UP ON THE NEXT COUPLE OF CITY COUNCIL AGENDAS. SO I'LL PAUSE RIGHT NOW AND SEE IF YOU ALL HAVE ANY QUESTIONS ABOUT THE 27 BUDGET OR CIP. ANY QUESTIONS FOR BLUE AND COLIN, TODAY WE'VE GONE. THIS WILL BE THE 85TH TIME WE'VE GONE THROUGH THE BUDGET. BUT I MEAN, IT DESERVES IT. IF YOU GUYS HAVE DONE A LOT OF WORK ON IT. AND I DON'T THINK THERE'S ANY QUESTIONS RIGHT NOW. OKAY. AND JUST TOUCHING BASE ON THE NEXT TWO AGENDAS. ON THE SEPTEMBER 1ST REGULAR CITY COUNCIL MEETING, THERE WILL BE A BUDGET, PUBLIC HEARING, A RATIFICATION RESOLUTION, THE BUDGET RESOLUTION, THE TAX RATE PUBLIC HEARING, AND THE FIRST READING ON THE TAX RATE ORDINANCE. AND THEN AT THE SEPTEMBER 8TH MEETING, THAT'S A SPECIAL CITY COUNCIL MEETING. WE'LL HAVE THE DRAINAGE FEE, PUBLIC HEARING AND VOTE. AND THEN THE SECOND READING ON THE TAX RATE. SO I APPRECIATE YOU ALL. MAYOR AND CITY COUNCIL, CITY MANAGER'S OFFICE, THE DEPARTMENT DIRECTORS, AND THEN ALSO THE STAFF AND THE BUDGET OFFICE.

THAT'S WORKED HARD TO GET US TO THIS POINT. SO VERY MUCH APPRECIATED. THANK YOU. THANKS.

THANKS, BLUE. ANY OTHER QUESTIONS FOR THE GUYS. YEAH. AGAIN, WE'RE KEEPING OUR TAX RATE THE SAME. WE'RE NOT RAISING OUR TAX RATE $730 MILLION BUDGET. YOU YOU GUYS WENT THROUGH THIS TOOTH AND COMB. AND I APPRECIATE ALL THE THE COST CENTER MANAGERS TO ALL THE DEPARTMENT HEADS, YOUR CONSCIOUS EFFORTS TO KEEP THIS CITY WHERE WE'RE PROVIDING BEST IN CLASS SERVICES. WE'RE NOT CUTTING ANY SERVICES, BUT DOING IT MORE EFFICIENTLY. AND I JUST APPRECIATE EVERYBODY'S WORK ON THE BUDGET THIS YEAR. THANKS. THANK YOU. ALL RIGHT. NEXT ITEM

[00:20:06]

RIVERFRONT, I THINK THIS IS KIND OF A, I THINK A CHANCE FOR THE COUNCIL TO TAKE A BIT OF A VICTORY LAP TODAY. THERE'S AMAZING THINGS THAT HAVE HAPPENED. RIVERFRONT, AS YOU KNOW, CAME FROM A VISION THAT THINGS STARTED SIX YEARS AGO. AND WE'VE SEEN 90% OF IT REALIZED. AND THAT'S REALLY, REALLY NICE. AND I THINK THE COUNCIL DESERVES MUCH CREDIT FOR THAT. AND YOU'RE GOING TO HEAR TODAY ABOUT THAT SUCCESS, AS WELL AS THE NEXT STEPS TO FINISH OUT RIVERFRONT. AND WE'RE EXCITED TO BE UP HERE WITH THE TEAM AND TO CELEBRATE THE WORK THAT THEY'VE DONE SO FAR. WITH THAT, I'LL TURN IT OVER TO PARIS. THANK YOU, PAUL.

AND I WOULD LIKE TO ECHO THE COMMENTARY OF CITY MANAGER MADE. YOU KNOW, THE QUALITY OF A CITY IS OBVIOUSLY BASED ON THE QUALITY OF ITS LEADERS AND ITS STAFF. AND YOU DON'T HAVE ANYONE BETTER IN A CITY ENVIRONMENT THAN THAN PAUL. SO WE APPRECIATE THE EFFORT THAT HE PUT INTO THIS ALONG WITH YOU ALL AND YOUR PREDECESSORS. IF IT WEREN'T FOR HIS EFFORTS, WE WOULDN'T HAVE AS GREAT OF A PROJECT AS AS WE ALL COLLECTIVELY HAVE. SO WE WE APPRECIATE THAT AND WE APPRECIATE YOUR LEADERSHIP. SO WE WANT TO GIVE YOU AN UPDATE AS TO WHERE THINGS STAND. I KNOW THAT THERE'S SOME FOLKS THAT MAY NOT HAVE BEEN AROUND IN THE VERY BEGINNING, SO WANTED TO HIT A COUPLE OF THOSE SLIDES AND THEN TELL YOU ABOUT WHERE THINGS ARE HEADED. AGAIN, I'M PARIS RUTHERFORD, MY PARTNER HERE. WE OWN CATALYST URBAN DEVELOPMENT, AND WE'VE BEEN YOUR PARTNER NOW FOR MULTIPLE YEARS IN SEEING THROUGH THIS AMAZING URBAN MIXED USE SPORTS ENTERTAINMENT DISTRICT, WHATEVER YOU WANT TO CALL IT, BUT JUST A HIGH QUALITY, WALKABLE ENVIRONMENT. SO JUST A QUICK, BRIEF HISTORY.

YOU SEE THERE ON THE LEFT, THAT'S THE LAND THAT THE CITY OWNED WHEN WE ENTERED AN AN RFP AND COMPETED TO HAVE THE ABILITY TO DEVELOP ON THAT PROPERTY. WE WERE SELECTED A LONG TIME AGO. IT TOOK A WHILE TO KIND OF COALESCE AND FIGURE OUT EXACTLY WHAT WE ALL WANTED TO DO, BUT WE DID THAT. WE HAD PUBLIC MEETINGS ON THE PUBLIC INFRASTRUCTURE. AND FINALLY, BY THE TIME WE GOT TO LATE 2019, WE WERE ABLE TO EXACTLY DEFINE WHAT WAS WHAT IT WAS GOING TO BE. AND THEN WE STARTED CONSTRUCTION IN 2020. I'LL REMIND YOU, WHEN WE STARTED CONSTRUCTION IN 2020, IT WAS JUST A COUPLE WEEKS AFTER A LITTLE THING CALLED COVID HIT THE WORLD. AND SO THAT WAS A WILD TIME. YOU KNOW, WE ALL HAD MEMORIES IN OUR CAREER. THAT'S DEFINITELY A MEMORY OF WHAT THAT WAS LIKE. IT WAS PRETTY ODD. BUT CONSTRUCTION CONTINUED THROUGH THAT, THAT WHOLE PROCESS. SO WE WORKED TOGETHER WITH YOU ALL AND THEN FINALLY WITH THE UNIVERSITY TO, YOU KNOW, HELP ORCHESTRATE THE FOSTER PAVILION COMING OVER ON THE OTHER SIDE. THAT WAS AN AMAZING WIN FOR EVERYBODY INVOLVED. I THINK AT THE TOP OF THAT IS THE UNIVERSITY AND THE KIND OF THE REGIONAL VISION THAT THAT PROVIDES TO THEM AS PEOPLE ARE DRIVING BY AS WELL, OBVIOUSLY AS A CITY AND A GREAT GATEWAY INTO DOWNTOWN, WE WERE JUST THANKFUL TO BE ABLE TO FILL IN AROUND THEM. AND WITH PAUL'S LEADERSHIP, WE FIGURED OUT HOW THAT WAS GOING TO BE PARKED AND HOW THOSE PARKING GARAGES WERE GOING TO BE SCREENED. SO WE DIDN'T HAVE JUST BIG, UGLY THINGS OUT THERE ON THE RIVER. AND YOU SEE ON THE RIGHT THOSE WHITE BUILDINGS, ALL OF THAT HAS BEEN BUILT AS A RESULT OF THAT PARTNERSHIP WITH YOU ALL. IT'S BEEN A TRUE PARTNERSHIP ALONG THE WAY. SO WHERE WE ARE TODAY IS IT'S A THE RIVERFRONT DISTRICT IS A MULTIPHASE, MIXED USE SPORTS AND ENTERTAINMENT WATERFRONT DISTRICT. TECHNICALLY, THAT'S WHAT IT IS. I WOULD SAY IT'S UNIQUE IN THE NATION AND IT'S ONLY GOING TO GET BETTER. THERE'S NOT MANY PLACES LIKE THIS AROUND THE COUNTRY WORKED ON THINGS LIKE THIS FOR 35 YEARS, AND YOU CAN COUNT ON MAYBE A COUPLE FINGERS ON A HAND WHERE YOU HAVE THIS KIND OF ENVIRONMENT, PARTICULARLY IN A GREAT COMMUNITY LIKE WACO. SO, YOU KNOW, WE KIND OF THINK IT EXPANDS DOWNTOWN NORTHWARD TO THE RIVER, WHICH IS PART OF THE GOAL OF THE RFP, AND ALSO HELPS BLEND TOGETHER BAYLOR AND THE CITY, WHICH I THINK IS A GREAT THING IN TERMS OF JUST THE IDENTITY OF BOTH AND PROVIDING EVEN MORE DESIRE FOR PEOPLE TO WANT TO BE HERE. SO THE PHASING YOU SEE IN RED, AGAIN, THIS IS FOR THOSE OF US THAT HAVEN'T

[00:25:05]

AND WHAT'S INTERESTING, WHEN YOU LOOK AT THE STATS THERE, THE MAJORITY OF THE PEOPLE THAT LIVE HERE ARE OVER 30. YOU WOULDN'T THINK THAT BECAUSE THE PROXIMITY UNIVERSITY, BUT THE MAJORITY OF PEOPLE ARE OVER 30. AND WE HAVE VERY HEALTHY INCOMES OF FOLKS THAT ARE LIVING THERE. SO THIS IS DONE A GREAT THING FOR OUR PARTNERS ON THE RETAIL BROKERAGE SIDE TO BE ABLE TO ATTRACT, YOU KNOW, AND HAVE DISCUSSIONS THAT WERE DIFFICULT PREVIOUSLY BECAUSE OF THE, YOU KNOW, THE ROBUSTNESS OF, OF THINGS THAT ARE HAPPENING OUT THERE AND THAT IT'S, YOU KNOW, THIS ISN'T A STUDENT DEAL. THIS IS A, A MIXED USE URBAN ENVIRONMENT OF HIGH QUALITY. SO WE'RE ABOUT 40% LEASED ON OUR RETAIL SPACES. ABOUT 20% OF WHAT'S REMAINING.

WE HAVE LETTERS OF INTENT. THIS IS A DYNAMIC ENVIRONMENT. WE'RE SUPER PICKY AND SELECTIVE.

WE'RE NOT GOING TO JUST LEASE SOMETHING TO LEASE SOMETHING WE'RE TRYING. IT'S AN OVERUSED TERM, BUT WE'RE TRYING OUR BEST TO CURATE WHAT'S HAPPENING AT THE STREET LEVEL WITH RETAIL AND RESTAURANTS SO THAT IT'S COOL AND IT STAYS. WE'RE LONG TERM OWNER. THE LAST THING WE WANT IS FOR ANYONE TO GO OUT. SO WE'RE BEING SUPER CAREFUL THAT THE OPERATORS KNOW WHAT THEY'RE DOING. THEY HAVE A GOOD PRODUCT AND THAT IT'S GOING TO BE PLEASING TO THE MARKET. SO WE'VE GOT DRY BAR, WHICH IS UNDER CONSTRUCTION FOR THE LADIES IN THE ROOM. THAT'S A PLACE FOR BLOWOUTS AND, YOU KNOW, NICE CARE OF YOUR BEAUTY. BUT IT'S A SUPER FAMOUS PLACE AROUND THE COUNTRY. AND YOU KNOW, WE ARE WE ARE HAVING POP UP EVENTS IN OUR PHASE ONE BUILDING. SO ANYONE THAT WANTS TO CHECK IT OUT, GO ONLINE. THEY'VE BEEN VERY POPULAR AND THEY'RE NOT EVEN OPEN YET. SO WE'RE SUPER HAPPY TO SEE THAT. AND THEN WE HAVE WORKED WITH A LOCAL RESTAURATEUR, CURRY UP, THAT HAS ANOTHER LOCATION HERE. THEIR FOOD AND PRODUCT IS GREAT.

THEY'RE READY TO EXPAND INTO A REAL RESTAURANT. AND SO WE'RE HELPING THEM DO THAT. AND WE BELIEVE IN THEIR CONCEPT AND, AND THEY'RE THE PEOPLE BEHIND THEM. AND THEN WE'VE GOT FITNESS FRONT, OTHER RESTAURANTS AS WELL. SO, YOU KNOW, AGAIN, WE'RE, WE'RE BEING SUPER PICKY AS TO HOW WE LEASE THAT SPACE ALONG THE WAY. SO THE INITIAL PHASES, I'M GOING TO GET GEEKY HERE FOR A MINUTE, BUT WE ARE SORT OF URBANISTS. WE BELIEVE IN WALKABLE PLACES, HIGH QUALITY STREETSCAPES, INTERACTIVE PLACES THAT ARE, YOU KNOW, VISUALLY, PROGRAMMATICALLY. THAT'S BEEN THE HALLMARK OF SUCCESS OVER THE LONG HAUL. AND SO WE DELIVERED THAT. AND IT'S ONLY GOING TO GET BETTER WITH MORE PHASES TO COME. AND WE'VE KIND OF FILLED IN WHAT HAD BEEN A BIT OF A DESOLATE AREA OF THE CITY. WE'VE NOW FILLED THAT IN WITH BUILDINGS AND NEW STREETS AND SIDEWALKS THAT AS THIS NEXT PHASE COMES AND WE THINK THAT HOPEFULLY THE PARK WILL GET IMPROVED A LITTLE BIT, AND THE GROUND LEVEL, THAT WILL BECOME EVEN MORE ACTIVATED THAN OBVIOUSLY IT IS RIGHT NOW. WE ARE CAREFUL THAT THIS WE'RE TRYING TO MAKE IT NOT LOOK LIKE IT'S ONE CANNED PROJECT, THAT IT'S GOT A DIVERSITY OF ARCHITECTURAL STYLE THAT WORKS WITH THE PAVILION AND WORKS WITH THE REST OF DOWNTOWN, AND PRESENTS A QUALITY FACE TO EVERYONE THAT'S LOOKING AT IT. WE'VE GOT SOME MIXED USE PLACES.

THE BUILDING ON THE UPPER RIGHT IS BETWEEN WEBSTER AND CLAY, NORTH SIDE OF YOU PARKS, AND THAT'S WHERE WE'VE GOT A LOT OF RETAIL, 10,000FT THERE BEHIND THAT BUILDING. BETWEEN IT AND THE GARAGE IS THE COURTYARD THAT YOU SEE THERE. THAT'S IT'S ACTUALLY A PUBLIC COURTYARD. SO

[00:30:03]

YOU KNOW, THE HOPE IS THAT PEOPLE WILL BE GATHERING IN THERE AND HAVING A GOOD TIME.

SO WE, YOU KNOW, A LOT OF TIMES THOSE SPACES ARE DESIGNED TO BE PRIVATE. THIS IS DESIGNED TO ALLOW THAT KIND OF ACTIVITY TO FLOW INTO IT. WE'VE GOT SOME NEAT ARTWORK YOU SEE ON THE UPPER LEFT. AND YOU KNOW, SOMETIMES YOU CAN'T SEE THESE SPACES FROM THE OUTSIDE, WHICH IS WHY WE'RE SHOWING IN THE OUR INITIAL BUILDINGS, THE YOU CAN SEE ON THE BOTTOM LEFT, THAT'S THE COURTYARD THAT IS A PRIVATE COURTYARD FOR THE RESIDENTS. IT HAS A POOL. IT HAS GRILLING AREA. IT'S GOT GAME AREA WITH PING PONG, STUFF LIKE THAT. IT'S IT'S RIGHT ADJACENT TO OUR FITNESS AREA AND OUR RESIDENT HALL BUSINESS CENTER. A LOT OF COOL THINGS. ALL OF OUR AMENITIES ARE OPEN 24 OVER SEVEN. OTHER FOLKS WITH BUILDINGS LIKE THIS WILL SHUT IT DOWN. AND IT'S JUST A MARKETING PLOY. THAT'S NOT US. WE DESIGN THESE SO THAT PEOPLE CAN USE THEM WHENEVER THEY WANT TO. YOU SEE SOME IMAGES OF WHAT SOME OF THOSE SPACES LOOK LIKE.

THOSE SMALL BUSINESS CENTERS THERE, DRY BAR ACTUALLY HAD A POP UP EVENT AND THEY WERE DOING PEOPLE'S HAIR AND STUFF IN THERE THE OTHER DAY. IT WAS INTERESTING TO SEE. AND THE UNITS ARE ON THE RESIDENTIAL SIDE. THE UNITS ARE VERY NICE. WE HAVE HIGH CEILINGS, BIG WINDOWS, GOOD QUALITY FINISHES. AND YOU KNOW, WE'RE VERY PROUD OF THE UNITS AND PEOPLE HAVE ENJOYED LIVING THERE. YOU KNOW NICE DESIGN FEEL TO THEM. IN THE BATHROOMS. WE HAVE THESE FANTASTIC LIT MIRRORS, NICE CABINETS IN THE KITCHENS, YOU KNOW. AND YOU KNOW, JUST TRYING TO RAISE THE BAR IN TERMS OF THE THE LIVING EXPERIENCE ON THAT SIDE OF THE USE COMPLIMENT THAT WE HAVE. SO LET'S TALK ABOUT THE NEXT PHASE. SO THE NEXT PHASE REALLY, YOU KNOW, IT'S TECHNICALLY IT'S TWO PHASES, BUT WE LOOK AT IT AS ONE AREA AND IT FILLS OUT THE REST OF THE LAND UP TO THE RIVER AND THE RIVERWALK. WE'RE SO EXCITED TO SEE THE RIVERWALK UNDER CONSTRUCTION, BECAUSE THAT ACTUALLY CREATES THE SITE FOR THE RESTAURANTS TO BE ABLE TO GO. SO WE'RE HAPPY TO SEE THAT UNDERWAY. AND YOUR TEAM IS DOING A GREAT JOB. SO THESE BUILDINGS WRAP AROUND THE PARK, AND THE PHASE TWO LAND WAS ORIGINALLY DESIGNED AS A FULL SERVICE HOTEL. THAT'S WHAT'S IN OUR AGREEMENT. THE REASON WE'RE HERE TONIGHT IS WE HAD SOME GOOD CONVERSATIONS WITH THE CITY, AND THERE WAS DISCUSSION ABOUT THE NUMBER OF HOTEL ROOMS THAT ARE IN THE MARKET RIGHT NOW. AND THEN YOU KNOW, WHAT A HOTEL OPERATOR MIGHT BE BRINGING TO THE EQUATION IN TERMS OF, YOU KNOW, POTENTIAL DOLLAR NEEDS, THAT KIND OF THING. SO WE'RE SENSITIVE TO THAT. SO WE'D LIKE TO EXPAND THE USE OFFERING INTO A MIX OF USE RESIDENTIAL WITH SOME OFFICE AND RETAIL. I'LL SHOW YOU WHAT THAT LOOKS LIKE IN A LITTLE BIT SO THAT WE HAVE THAT FLEXIBILITY TO CONTINUE FORWARD, YOU KNOW, MOVE RIGHT INTO DESIGN ON THE NEXT PHASE AND THEN GET, YOU KNOW, GET EVERYTHING DONE. SO THAT'S, THAT'S WHERE WE ARE. SO LET'S TALK ABOUT WHAT THAT LOOKS LIKE. ON THE LEFT IS A MIXED USE BUILDING. ONE THING WE'VE NOTICED ON THE RESIDENTIAL SIDE IS THAT OUR LARGER UNITS HAVE BEEN THE MOST POPULAR, WHICH IS USUALLY NOT THE CASE. AND WHEN YOU LOOK AT THE AGE DEMOGRAPHIC, IT MAKES SENSE THAT WE HAVE FOLKS THAT ARE, YOU KNOW, AT THE END OF THEIR CAREER AND BEYOND THAT MAY HAVE MOVED HERE FROM A HOME, EMPTY NEST. WE HAVE WE HAVE THAT. WE HAVE OTHER FOLKS THAT, YOU KNOW, THAT JUST WANT TO HAVE A LARGER UNIT. SO WE SEE THIS AS THE, THE LUXURY BUILDING TO, TO USE A TERM THAT KIND OF BUILDS OUT. SO WE HAVE A WHOLE COLLECTION OF DIFFERENT TYPES OF UNITS WITHIN A BUNCH OF DIFFERENT TYPES OF BUILDINGS WITH DIFFERENT AMENITIES. AND THIS WILL BE KIND OF THE TOP END OUT THERE. BUT AT THE BASE, WE HAVE NONRESIDENTIAL USES OUT ALONG WEBSTER RESTAURANTS AND OFFICE SPACE, SOME AMENITY SPACE AS WELL, SO THAT IT'S ACTIVE AND IT'S LOOKING BACK AT THE RESTAURANTS THAT YOU SEE IN THAT KIND OF PINK COLOR IN THE UPPER RIGHT. AND OBVIOUSLY, WHAT HAPPENS ULTIMATELY IN THE DESIGN OF THE PARK. SO WE'RE TRYING TO MAKE THAT AS INTERACTIVE AS POSSIBLE. THE GREEN SPACE WITHIN THAT UPSIDE DOWN, SEE IS THAT WOULD BE A PRIVATE COURTYARD. SO WE HAVE A PUBLIC COURTYARD, WE HAVE A PRIVATE POOL COURTYARD. AND THEN THIS IS KIND OF A PRIVATE COURTYARD FOR THE FOLKS THAT LIVE THERE. I'LL SHOW YOU WHAT THAT LOOKS LIKE. WE'LL HAVE SOME TWO STORY UNITS AND FLATS. SO WHAT YOU'RE LOOKING AT HERE IS YOU'RE FLOATING OUT OVER THE RIVER, LOOKING BACK SOUTH, AND YOU SEE IN THE UPPER RIGHT THAT MIXED USE BUILDING, YOU SEE THE RESTAURANTS IN THE FOREGROUND. THE RESTAURANTS COMBINE AROUND A SHARED OPEN SPACE, LIKE A PUBLIC SPACE. YOU CAN WALK TO IT FROM THE PARK. YOU KNOW, I IMAGINE, YOU KNOW, KIDS HANGING OUT WITH THEIR PARENTS, MAYBE THEY'RE WAITING TO GET A TABLE OR THEY'RE JUST COMING DOWN TO HEAR SOME MUSIC OR SOMETHING LIKE THAT. THESE RESTAURANTS HAVE LARGE TERRACES. THAT'S HOW

[00:35:02]

OBVIOUSLY, AT NIGHT, WE WANT TO MAKE SURE THAT THERE'S LIGHTS AND ACTIVITY THAT YOU CAN SEE ALONG THE RIVER. IT LOOKS FUN. YOU KNOW, I PUT SOME MUSICIANS, YOU KNOW, WE MADE SURE THAT THE, YOU KNOW, THE DESIGNERS HAD SOME BAND MEMBERS OUT THERE PLAYING SOME MUSIC. THAT'S THE GOAL IS TO HAVE A PLACE TO COME AND HANG OUT. IT'S NOT JUST ABOUT COMMERCIAL OPERATIONS.

THERE'S NEAT STUFF HAPPENING FROM A PUBLIC STANDPOINT AS WELL, SO THAT WE, YOU KNOW, FINISH OUT THIS EFFORT WE'VE BEEN GOING THROUGH TOGETHER FOR A FEW YEARS, YOU KNOW, SUCCESSFULLY. YOU SEE THE PRIVATE COURTYARD IN HERE WITH THE WATER FEATURE, SOME SHADE PAVILIONS, CABANAS. AND IMPORTANTLY, THE RIVERWALK, AS YOU KNOW, IS STOPPING AT WEBSTER. BUT WE'VE MADE SURE TO ALLOW ROOM FOR THE EXPANSION WHEN THAT MAY HAPPEN OF THE RIVERWALK TO CONTINUE. OBVIOUSLY, THERE'S THE EXISTING RIVERWALK RIGHT NOW, WHICH YOU KNOW, WILL BE CONNECTED INTO, BUT IF AND WHEN YOU MAKE THAT CONNECTION TOWARDS THE BRIDGE, WE'VE LEFT ROOM TO MAKE SURE THAT THAT CAN HAPPEN PROPERLY. AND THEN FINALLY, IN WHAT YOU'RE HEARING TONIGHT, THIS IS KIND OF WHAT'S IN THE WHAT'S ON THE AGENDA AS IT RELATES TO THE DATE AND THE TIME FRAMES TO MAKE THIS WORK. AND WE'RE READY TO GO, AND WE'RE EXCITED TO HAVE THE OPPORTUNITY TO CONTINUE TO WORK WITH YOU AND, AND DELIVER, YOU KNOW, EVEN BETTER RIVERFRONT EXPERIENCE THAN WE HAVE TODAY. THAT CONCLUDES MY PRESENTATION.

GREAT. THANKS. ANY QUESTIONS FOR THE CATALYST GROUP? COMMENTS. OBSERVATIONS. SO I THINK WHAT YOU GUYS HAVE DONE REALLY DOES LOOK FANTASTIC. LOOKING AT THESE TWO STANDALONE, LIKE ON THE RESTAURANT STUFF, IS THAT SOMETHING WHERE YOU ALL WOULD HAVE A DESIGN AND THEN YOU FIND A TENANT OR DO YOU SORT OF CO DO THAT WITH THE TENANT? YEAH. SO RIGHT NOW THIS IS OUR DESIGN. SO OUR IF I DON'T KNOW IF YOU'VE BEEN THROUGH THAT PROCESS, BUT THERE USUALLY IS BACK AND FORTH, OBVIOUSLY, PARTICULARLY WHEN THEY'RE STANDALONE BUILDINGS LIKE THIS. SO THIS IS WHAT WE'RE GOING TO MARKET WITH. AND IF SOMEBODY COMES BACK AND IT'S AN UNBELIEVABLE RESTAURANT, WE'LL BE WORKING WITH STAFF ALONG THE WAY. SOMETIMES THOSE RESTAURATEURS ARE VERY SPECIFIC ABOUT THEIR ARCHITECTURE. SO THAT COULD HAPPEN. IT COULD BE DIFFERENT THAN THIS IN THAT REGARD. BUT WHATEVER IT IS, WE WANT TO MAKE SURE IT LOOKS GOOD AND IT GENERALLY FOLLOWS THIS PLAN. SO, YOU KNOW, WE KIND OF HAVE TWO SITES. THEY ARE COMBINING AROUND AN OPEN SPACE IN THE MIDDLE AND THEN CONNECTS INTO THE RIVER WALKWAY. AT A MINIMUM. WE'VE GOT THAT, AND WE WANT TO MAKE SURE THAT THE ARCHITECTURE LOOKS GOOD. AND, YOU KNOW, WE'LL BE WORKING CLOSELY WITH STAFF IN THAT REGARD. BUT WE WE WILL OWN THE BUILDING AND LEASE THE SPACE. SO THE DESIGN INTENT WILL REST WITH US. WE THIS IS OUR INTENT.

THIS IS OUR DESIRE. OUR GOAL IS TO FIND THE TENANT THAT FITS WITHIN THIS CONTEXT, BECAUSE WE'LL OWN THE BUILDING WILL BE ON THEIR LEASE. YEAH. THANKS. CAN YOU GO BACK TO THE THE

[00:40:03]

OH, WHO REMEMBERS THE BEGINNING OF THIS? I FEEL YOU JUST HAVE A GOOD MEMORY. YEAH. THAT'S IT. I, I CAN'T ECHO ENOUGH THE. JUST. INCREDIBLE VISION AND ABILITY THAT THIS HAS MADE AND BRINGS LIGHT TO THIS PORTION OF THE RIVERWALK. IT IS. BUT THE BEGINNING. AND I'M, I'M GRATEFUL TO SEE AS MUCH SUCCESS THAT HAS COME FROM SPECIFICALLY THE RESIDENTIAL SIDE. THE DEMOGRAPHICS SPEAK VOLUMES ABOUT WHO AND WHAT IS MOVING AROUND IN AND DOWNTOWN. I KNOW A LOT OF MINDSET AT THE BEGINNING OF THIS WAS, YOU KNOW, STUDENTS, WHICH IT IS NOT. AND THAT MAKES SENSE FOR. A DEVELOPING DOWNTOWN AREA. THAT SEEMS FAR. I MEAN, AND I KNOW THAT CITIES MOVE IT AND DEVELOPMENT MOVES AT THE SPEED OF DEVELOPMENT AND CITIES. BUT I WAS THAT TIMELINE. YEAH, YEAH. SO I TALK ABOUT THAT A LITTLE BIT. SO THE ONE THING IT TAKES ABOUT A YEAR TO DESIGN STUFF. SURE. BELIEVE IT OR NOT, I WISH IT TOOK ABOUT A MONTH AND MAYBE AI FIVE YEARS FROM NOW MIGHT CHANGE THAT. BUT WITH HUMANS STILL INVOLVED, TAKES ABOUT A YEAR AND THEN IT TAKES A COUPLE OF YEARS. IF YOU'RE GOING AT LIGHTNING SPEED TO GET STUFF BUILT. SO I JUST, YOU KNOW, PUT THAT OUT THERE. OBVIOUSLY, OUR GOAL IS TO GO AS QUICKLY AS WE CAN. BUT, YOU KNOW, THINGS HAPPEN. CONSTRUCTION IS AN IMPERFECT PROCESS. YOU KNOW, WE HAD, YOU KNOW, A FUN TIME, YOU KNOW, WITH SOME UPS AND DOWNS BEFORE, YOU NEVER KNOW. THIS IS, YOU KNOW, AN OLD AREA OF THE CITY. YOU NEVER KNOW WHAT'S UNDERNEATH. WE FOUND A LOT OF STUFF. SO WE JUST WANT TO MAKE SURE THAT AS WE HAVE DONE THUS FAR, THAT WE'RE MEETING OUR COMMITMENTS. AND I WOULD JUST ALSO ADD, IT'S ALSO HELPFUL TO, TO THINK THROUGH WHAT THE CITY IS DOING WITH THE RIVERWALK AND THE TIMING ASSOCIATED WITH THAT. THE CONTEMPLATION, COMPLETION OF THAT IS END OF 27. SURE. SO WE CAN'T REALLY START CONSTRUCTION ON THE RESTAURANTS UNTIL THAT'S DONE. AND THEN WHAT WE DON'T WANT TO DO IS, IS HAVE THE IMPEDIMENT OF THE MIXED USE WELL UNDER CONSTRUCTION WITHOUT THE COMMENCEMENT OF DIRT WORK AND THINGS LIKE THAT. YOU IDEALLY WANT THE, THE RESTAURANTS AND THE MIXED USE TO COALESCE AT THE SAME TIME. CORRECT. AND SO WE'RE KIND OF, WE KIND OF TOOK THE DATE OF WHEN'S THE CITY GOING TO BE COMPLETE WITH RIVERWALK? LET'S BACK INTO THAT AND MAKE SURE THAT WE'RE STARTING AS SOON AS THEY'RE DONE. IF THAT IF THAT ESCALATES. THAT'S WHY WE DID A 90 DAY PROVISION FOR THE RESTAURANTS THAT 90 DAYS FOLLOWING THE RIVERWALK COMPLETION IS WHEN WILL COMMENCE. SO THAT WE WANT TO START, OBVIOUSLY, AS SOON AS WE AS WE CAN IN THAT CAPACITY.

AND I KNOW THAT WE'RE AT 99% FOR THE RESIDENTIAL. WHAT'S THE PERCENTAGE ON THE RETAIL OF THE SPACES THAT WE'RE DONE? WE'VE GOT 40% OF THE SPACE IS COMPLETE. IT'S ABOUT A LITTLE OVER 30% ON THE PRE-LEASING SIGNED LEASES UNDER CONSTRUCTION. WE'VE GOT TWO LOI S THAT ARE THAT ARE EXECUTED, THAT WE'RE PROGRESSING ON THOSE TWO. THAT WOULD TAKE US NORTH OF 50% FOR THE BALANCE OF THE RETAIL. AND I'M SURE YOU ALL HAVE IN YOUR MIND YOUR DREAM RESTAURANTS THAT YOU WANT TO GO THAT THAT YOU'RE CHASING THE RIVER. YES, WE WOULD, WE WOULD DEFINITELY LIKE REALLY TO ACT. AS PARIS MENTIONED, THE UNIQUENESS OF THIS SITE IS THE ABILITY TO SIT ON THE RIVER, HAVE THE BENEFIT OF THAT CIRCUMSTANCE, HAVE THE BENEFIT OF FOOTBALL GAME, BASKETBALL GAME, PROXIMITY TO THE URBANITY OF THE DOWNTOWN NATURE. SO WE REALLY WANT TO LEAD WITH WHO WORKS WELL WITH OUTDOOR PATIO TYPE SEATING WHERE IT'S NOT A QUICK SERVICE, FAST CASUAL, IN AND OUT. AND IT'S ABOUT TURNING THE TABLES. IT'S REALLY ABOUT CULTIVATING THE EXPERIENCE WHERE YOU'RE THERE FOR HOURS. YEAH. AND IT'S, IT'S INTERESTING. THE RESTAURANTEURS ARE FANTASTIC AT WHAT THEY DO. IT'S, THEY'RE A DIFFERENT ANIMAL. AND A LOT OF TIMES IT'S DIFFICULT TO SEE BEYOND A PRETTY SHORT PERIOD OF TIME. SO TO, TO HAVE REAL CONVERSATIONS, YOU USUALLY HAVE TO HAVE THE BUILDING THERE. SO IT'S JUST HOW IT'S JUST THE NATURE OF IT. UNLESS YOU'RE SELLING A PAD SITE, WHICH ISN'T OUR INTENTION HERE. GOT IT. THANK YOU. I'LL LEAVE JUST A COUPLE OF QUICK POINTS ON THAT. ONE OF THE THINGS THAT WE ENCOUNTERED ONCE THE PAVILION WAS BEING BUILT IN THE GARAGE AS WELL, WAS JUST THE THE WHOLE CHALLENGE OF STAGING FROM CONSTRUCTION STANDPOINT. AND WHEN YOU'RE, YOU'RE TALKING ABOUT THE LAST TWO PARCELS HERE TO BE STAGED. THOSE PARCELS WERE USED TO BE WHERE WE STAGED EVERYTHING. SO NOW THEY'RE GOING TO BE BUILT ON. SO HOW ARE WE GOING TO STAGE THAT. SO THIS GIVES US SOME FLEXIBILITY TO WORK THROUGH THAT. AND WE MAY HAVE TO EVEN USE SOME OF THE CITY MUCH FURTHER DOWN. YOU PARKS TO TO STAGE SOME MATERIALS ON. SO WE FELT LIKE THIS TIME FRAME GAVE US THE OPPORTUNITY TO, TO HAVE SOME FLEXIBILITY IN

[00:45:02]

AND THEN VERY INTERESTING THAT THOSE UNITS, THE LARGER UNITS, ARE THE MOST POPULAR. AND I DON'T THINK WE FORESAW THAT IN THE IN THE PER SQUARE FOOT IS A LITTLE, YOU KNOW, THE MARKET'S KIND OF CHANGED AND IT'S MADE SOME OF THESE PROJECTS A LITTLE MORE ECONOMICALLY VIABLE. AND REALLY THEY'VE HELPED US AS THEY'VE GIVEN US AN ELEMENT OF OPTIMISM AS AND YOU GUYS AREN'T INVOLVED IN THIS NEXT ONE, BUT THE BARONS BRANCH THAT WE KEEP TALKING ABOUT REALLY OF THIS, IF THIS WASN'T WORKING, WE WOULDN'T BE IN A PLACE WHERE WE'RE THINKING ABOUT DOING EVEN MORE DOWNTOWN. SO JUST I'M SO HAPPY TO HAVE THAT. I GET TO SERVE ON COUNCIL WHEN ALL THIS STUFF IS HAPPENING, YOU KNOW, BECAUSE IT'S A IT'S A GREAT TIME. YOU IN THE MIDDLE OF THE ONE. I JUST DON'T WANT PEOPLE TO FORGET THE HISTORY. YOU KIND OF HAVE TO PIVOT. OUR ORIGINAL PLAN, WHEN THE PAVILION CAME IN AND BAYLOR SORT OF BECAME MORE ACTIVE. AND I APPRECIATE BAYLOR'S INVOLVEMENT IN THIS. ALSO, WHEN WE WEDGED THE FOSTER IN THERE AND MADE IT KIND OF A COOL GAME DAY EXPERIENCE, WHICH WE'RE SEEING SOME GOOD THINGS HAPPEN THERE TOO. AND NOW I LIKE, I DON'T WANT THE MESSAGING TO GET HIDDEN IN HERE BECAUSE WE'RE TALKING ABOUT NOW PIVOTING OUT OF A HOTEL CONCEPT, WHICH JUST DOESN'T WORK. WE'VE GOT, AS YOU MENTIONED, WE SORT OF HAVE A OUR INVENTORY OF HOTEL ROOMS IS PRETTY STOUT RIGHT NOW. SO INSTEAD OF ASKING YOU TO DO ANOTHER HOTEL ON THIS DEAL, WE'RE, WE'RE TALKING ABOUT RESTAURANTS AND, AND THEN THE MORE RESIDENTIAL, WHICH SEEMS TO FIT THE MARKET RIGHT NOW. SO I APPRECIATE YOU GUYS BEING FLEXIBLE AS WE AS WE GO THROUGH THIS, WE'VE CREATED A MORE VIBRANT DOWNTOWN HERE. AND YOU GUYS HAVE BEEN A BIG PART OF IT. AND WE JUST GREAT THINGS TO COME AND WE'RE DREAMING AROUND SOME OTHER THINGS WE'RE DOING DOWNTOWN. SO I APPRECIATE THE WORK THAT THE CATALYST GROUP HAS DONE. AND, AND THE FACT THAT PARIS, YOU WERE HERE WHENEVER WE STARTED THIS TEN YEARS AGO AND YOU'RE STILL HERE, YOU YOU'VE HAD FAITH IN THE CITY HERE, TOO. AND I APPRECIATE BEING A GOOD PARTNER IN THIS DEAL. SO LOOKING FORWARD TO THE NEXT. I WISH YOU COULD COME QUICKER, BUT I UNDERSTAND THAT WE'RE WORKING ON THE RIVER RIVERWALK OR RIVERFRONT WALK, AND THAT'S UNDERWAY. IF WE CAN GET DONE WITH THAT IN, WHAT IS IT, 18 MONTHS? THAT'LL BE THAT'LL BE FASCINATING IN AND OF ITSELF. AND I THINK THESE NEW FEATURES WILL FIT RIGHT INTO THAT REALLY EXCITING STUFF. BUT I APPRECIATE YOU GUYS AND THANKS FOR THE UPDATE. THANK YOU. OKAY. THE NEXT ITEM IS WORK SESSION FOR 92 CITY MANAGER HOLT. ALL RIGHT. MAYOR AND COUNCIL. MR. CAIN, I THINK YOU CAN STAY AT THE TABLE. MAYBE OUR THIRD WORK SESSION IS FOR 92. A DISCUSSION OF THE PROPOSED WACO SURF DESPERADO DEVELOPMENT AND RELATED MASTER DEVELOPMENT AGREEMENT. ASSISTANT CITY MANAGER PAUL KANE WILL BE JOINED AT THE TABLE BY SOME OF THE TEAM, AND THE REST OF THE TEAM WILL BE IN THE AUDIENCE

[00:50:03]

BRIAN. MAYOR AND COUNCIL, THIS IS A IT'S A FUN DAY. THERE'S BEEN A LOT OF DISCUSSION AROUND THIS PROJECT, AS YOU KNOW, STARTED, I BELIEVE, BACK IN APRIL AND MAY. SO A UNIQUE PROJECT, UNIQUE LOCATION, UNIQUE BUSINESS, UNIQUE CUSTOMERS, UNIQUE CONSTRUCTION STYLE, EVERYTHING ABOUT IT IS UNIQUE AND IT REQUIRED SOME UNIQUENESS. I THINK ON THE PART OF, OF THE CITY TO, TO HELP MAKE THIS HAPPEN. AND YOU'RE GOING TO HEAR ABOUT A UNIQUE DEVELOPMENT FROM THE TEAM. AND THEN I'LL WRAP IT UP AT THE END WITH SOME OF THE UNIQUE THINGS THAT WE'RE GOING TO BE DOING AS A CITY TO HELP BRING SUCCESS TO THE PROJECT AND PUT IT ON THE RIGHT FOOT GOING FORWARD. SO WITH THAT, I'LL TURN IT OVER TO DAVID AND GET US STARTED. THANK YOU GUYS SO MUCH FOR ALL THE SUPPORT AND HEARING THIS OUT. MR. HOLMES. NICE SEEING YOU AGAIN. SEEING YOU. UNREAL. YEAH GUYS, I'M JUST GOING TO GIVE YOU A QUICK NOT TO TAKE UP TOO MUCH OF THE TIME, BUT I'LL GIVE YOU A QUICK. FOR THOSE OF YOU WHO DON'T KNOW ABOUT WACO SURF AND THE EVOLUTION, I'LL GIVE YOU A RUNDOWN OF HOW IT BECAME WACO SURF, KIND OF WHAT WE'RE DOING NOW AT WACO SURF, AND THEN A LITTLE INSIDER ONTO THE FUTURE OF THE DESPERADO AND THE EXPANSION OF WACO SURF. SO WHEN WHEN I GOT INVOLVED IN THIS PROJECT, I CAME OUT TO BE SR, IT WAS CALLED BSR. IN 2018, MY NEIGHBOR, A FRIEND OF MINE IN ENCINITAS, CALIFORNIA, WHERE I'M FROM, WAS REPRESENTING THE TECH COMPANY CALLED AMERICAN WAVE MACHINES, AND THIS WAS THEIR FIRST FULL SCALE R&D FACILITY FOR THIS MAN MADE WAVE MACHINE. AND IT WAS THE FIRST IN THE WORLD, THE FIRST OF ITS KIND OF PNEUMATIC TECHNOLOGY. SO I GOT THE INVITE TO COME OUT HERE IN 2018 AS THE POOL WAS IN ITS R&D FACILITY PHASE, I GOT TO SEE ALL THE CONSTRUCTION FROM THE GROUND UP, AND IT WAS WHEN THAT FIRST WAVE WAS RUN IN 2018, AND THIS PRO SURFER NAMED SETH MONIZ DID A BACKFLIP. IT WENT VIRAL AMONG THE SURFING WORLD, AND PEOPLE JUST STARTED COMING. THEY'RE LIKE, HOW DO I GET THERE? I DON'T CARE WHERE IT IS, HOW FAR IT IS, THE WEATHER, I'M COMING. AND IT GOT TO A POINT WHERE IT WAS JUST TOO MANY PEOPLE WERE COMING.

THE FUTURE OWNER OF THE OF THE COMPANY AT THE TIME, BSR CALLED ME UP AND HE WAS LIKE, THIS IS TURNING INTO TOO MUCH OF AN OPERATIONS THING FOR ME. I NEED TO GET OUT OF IT. SO WOULD YOU LIKE TO BUY IT? AND MY ANSWER WAS, YES, I HAD A, I JUST I JUST GOT MARRIED. I HAVE A NEWBORN BABY ON THE WAY. I WAS EXITING FROM MY PREVIOUS COMPANY AND SAT MY WIFE DOWN ONE DAY AND SAID, WHAT DO YOU THINK ABOUT MOVING TO WACO, TEXAS? TO WHICH SHE SAID, ABSOLUTELY, IF THIS IS WHAT YOU'RE PASSIONATE ABOUT, I'M IN AND MY LITTLE DAUGHTER'S IN.

AND SO WE PACKED UP OUR BAGS IN 2020 IN COVID AND CAME OUT HERE TO CLOSE ON THE PROPERTY IN 2021. AND SO THE WHOLE ENTIRE TIME SINCE THEN, IT'S BEEN AN ABSOLUTE DREAM. IT'S A PASSION PROJECT OF MINE. I'M AN AVID SURFER, I LOVE HOSPITALITY, I LOVE WATCHING THE JOY THAT THIS PROJECT BRINGS PEOPLE. IT MAKES ME EMOTIONAL. BUT I GOT TO SEE MY DAUGHTER SURF THERE FOR THE FIRST TIME IN HER LIFE. AND LIKE, I KNOW THIS IS CHANGING. LIKE IT'S CHANGING PEOPLE'S LIVES TO BE ABLE TO HAVE THOSE MOMENTS WITH PEOPLE, WITH YOUR FAMILY, WITH PEOPLE THAT YOU LOVE, AND CREATING THESE LEGACY MOMENTS THAT YOU WILL REMEMBER FOR THE REST OF YOUR LIFE. THAT HAPPENS EVERY DAY THERE. AND SO THIS PARK IS WHAT IT IS, AND IT'S TURNED INTO THIS JUST WORLD RENOWNED DESTINATION FOR SURFERS, FOR FAMILIES. AND IT'S BECOME A LEGACY. AND WE'RE SO BUSY AND THE BUSINESS IS GROWING. WE HAVE A BEAUTIFUL WATER PARK COMPONENT. THE SURF COMPONENT IS WHAT IT IS. WE HAVE 13 KEY HOTEL RIGHT NOW AND SEVEN CABINS THAT WE RENT OUT AT OUR OCCUPANCIES, RIGHT AROUND 95% FOR THE YEAR AND OUR IN OUR ACCOMMODATIONS, SO TO SPEAK. A LITTLE BIT ABOUT THE DESPERADO AND THE EVOLUTION OF THIS BUSINESS, A LOT OF DEVELOPMENT. YOU SEE THESE SURF PARKS, PEOPLE TALK ABOUT THEM STARTING TO POP UP EVERYWHERE.

THEY'RE REALLY HARD TO BUILD. THEY'RE REALLY EXPENSIVE TO BUILD. AND THE EVOLUTION FOR US IS, IS SUCH A NATURAL FIT. LIKE WE GOT INTO THIS BUSINESS LEARNING HOW TO OPERATE AND MAINTAIN A A WAVE PARK. PEOPLE OUT THERE NOW ARE TRYING TO SELL DEVELOPMENTS SO THAT THEY

[00:55:06]

SOME REALLY IMPORTANT ANCHORS HAPPEN IN WACO. AND SO SIMILARLY, WHAT DAVID AND HIS CO OWNER, LUKE SHOCK, HAVE BEEN WORKING ON IS HOW TO TAKE THIS 450 ACRE, WHAT'S CURRENTLY A DESTINATION RESORT, TINY RESORT, 13 ROOM RESORT AND BUILD IT INTO A COMMUNITY THAT REALLY GIVES PEOPLE A WAY TO INVEST AND BE PART OF THIS FOR FAR MORE THAN JUST A COUPLE OF DAYS AT A TIME. AND SO ONE OF THE UNIQUE THINGS ABOUT THE PARK IS, I THINK PARIS ACTUALLY COMMENTED THAT HE CAN NEVER GET INTO THE PARK BECAUSE NOW AT THIS POINT, THEY'RE PRE-SOLD SO MANY MONTHS IN ADVANCE FOR A LOT OF THE SESSIONS. AND SO PART OF WHAT'S COMING TO YOU GUYS AS PART OF THIS MASTER DEVELOPMENT IS BOTH BUILDING A COMMUNITY, BUT ALSO ANCHORING ADDITIONAL SECOND WAVE POOL THAT EXPANDS THE CAPACITY AS A DESTINATION. AND SO THE PROJECT REALLY HAS TWO PARTS. IN THAT WAY, YOU CAN LOOK AT ALL THE ACCOLADES ON THE SLIDE, BUT ONE OF THE INTERESTING ONES IS THAT THE 6200 OF THE CURRENT WACO SURF CUSTOMERS ARE IN THE TOP 1% OF INCOME EARNERS IN THE US. AND SO WHEN LOOKING AT THE OPPORTUNITY OF ALL OF THESE SURF PARKS BEING PROPOSED AROUND THE COUNTRY AND INTERNATIONALLY IN PLACES LIKE CABO WACO, SURF FELT LIKE THEY HAD AN OPPORTUNITY TO CAPITALIZE ON WHAT HAS ALREADY BECOME A TRUSTED BRAND AND TRY TO ATTRACT SOME OF THOSE EXISTING CUSTOMERS AND MORE TO TO BE BOTH HOMEOWNERS IN WACO AND MORE ACTIVE PARTICIPANTS AND, AND VISITORS TO THE PARK.

SO THEY BROUGHT TOGETHER THIS GREAT WORLD CLASS TEAM. WE'VE GOT KIMLEY-HORN CARLOS LEAL AS OUR ENGINEER OF RECORD, ALSO WACO BORN KID LEGACY INTERNATIONAL IS THE BROKERAGE FIRM WORKING ON THE PROJECT. THEY REPRESENT A NUMBER OF DESTINATION COMMUNITIES AND RESORTS, PLACES LIKE HORSESHOE BAY HERE IN TEXAS. FORMA IS BOTH THE MASTER PLAN ARCHITECT AND THE RESIDENTIAL ARCHITECT FIRM IS REALLY WELL KNOWN FOR BEING THE ARCHITECT AROUND WHAT'S CALLED HOUSE ZERO, WHICH WAS THE VERY FIRST 3D PRINTED HOME. AND IT IS IN AUSTIN. IT WAS A PROJECT FROM ICON. ICON WILL BE THE HOME BUILDER, AND YOU'LL GET TO SEE SOME PRETTY PICTURES OF SOME VERY INNOVATIVE AND SUSTAINABLE HOMES THAT WILL BE BUILT ON THE SITE. CAMERON KENDRICK WITH KENDRICK INDUSTRIES IS THE GENERAL CONTRACTOR AND WILL DO ALL THE CIVIL CONSTRUCTION ICON WILL BUILD THE HOMES ON SITE. ABOVE THAT, I'M WORKING WITH THEM ON THEIR SITE LOCATION AND THEN ATTORNEY WISE IT'S A DEEP DECK. WE'VE GOT CEDAR CREEK MUNICIPAL ADVISORS WHO ARE THE FINANCIAL ADVISOR ON THE PROJECT, AB, HR, TREY, AND, AND WITH THEIR TEAM ARE HERE. THEY WILL REPRESENT THE DISTRICT MOVING FORWARD. AND THEN TERRY TAYLOR, WHO IS THE FORMER GENERAL COUNSEL AT CLUBCORP, IS PART OF THE LEGAL TEAM WORKING ON THE MEMBERSHIP STRUCTURE FOR THE SURF COMMUNITY. AND SAM FULCHER IN BELTON IS THE GENERAL COUNSEL FOR WACO SURF. SO AT THE HEART OF WHAT, IF YOU WANT TO THINK ABOUT THIS PROJECT, AT THE HEART OF WHAT IT'S TRYING TO DO IS KIND OF BLEND THE TEXAS RANCH CULTURE WITH WEST COAST SURF CULTURE AND BUILD A COMMUNITY AROUND IT. YEAH, LET ME COMMENT ON THAT A LITTLE FURTHER, BECAUSE I THINK IT'S INTERESTING. THIS ISN'T LIKE, FOR THOSE OF YOU WHO DON'T KNOW, SURF CULTURE, IT'S VERY UNIQUE IN, IN THE PARTS OF THE WORLD WHERE IT'S LOCATED.

AND I'VE NEVER SEEN ANYTHING LIKE THIS. I GREW UP IN ENCINITAS, CALIFORNIA, WHERE SURF CULTURE, IT WAS PRETTY MUCH CREATED. LIKE, IT'S LIKE SOUTHERN CALIFORNIA IS THE EPITOME OF SURF CULTURE. HAWAII AS WELL. WHAT'S SO UNIQUE TO TEXAS IS TEXAS HAS ITS OWN SURF

[01:00:01]

THEY'RE NOT TRYING TO BE HAWAII SURF CULTURE. THERE'S THIS WHOLE SUBCULTURE OF HUMANS WHO HAVE COME OUT HERE AND CREATED THIS VIBE AT WACO SURF THAT IS SO UNIQUE TO WACO AND SO UNIQUE TO TEXAS, AND PEOPLE ARE FLOCKING TO THAT FROM ALL OVER THE PLACE. AND IT'S JUST MAGICAL TO TO SEE IT HAPPEN IN FRONT OF MY FACE. AND IT'S JUST, IT'S ONE OF THE MOST UNIQUE EXPERIENCES I'VE GOT TO WATCH IN ANY BUSINESS. AND IT'S SO UNIQUE TO WHAT THIS COMPANY IS.

AND IT'S SO IMPORTANT TO THE CULTURE OF, OF WHAT WE'VE CREATED THERE, THAT IT'S MAGICAL AND PEOPLE ARE GRAVITATING TOWARDS IT. AND, AND I THINK WACO HAS SUCH AN IMPACT ON THAT. I MEAN, WE MOVED HERE SIX YEARS AGO AND THIS TOWN LITERALLY, LIKE ROLLED OUT THE RED CARPET FOR ME AND MY FAMILY. AND SO I FEEL SO GRATEFUL FOR ALL THE OPPORTUNITIES THAT I'VE GOTTEN TO DO HERE IN WACO AND FOR ALL THE PEOPLE THAT I'VE MET, EVEN MR. COLE. AND SO EVERYBODY HERE, IT'S LIKE IT'S JUST BEEN SUCH A SUCH AN AMAZING RIDE. AND SO I JUST FEEL SO GRATEFUL TO BE A PART OF THIS WHOLE EXPERIENCE. OKAY. OKAY. SO WE'RE GOING TO WALK THROUGH A COUPLE VISION SLIDES, THE COMMUNITY MASTER PLAN, AND THEN WALK THROUGH SORT OF THE ECONOMICS OF THE DEAL. SO THE VISION HAS TWO SURF LAGOONS, STANDING WAVE, 25 ACRE LAKE, AND 90 HOMES FOR SALE. AND BEYOND THAT, THERE'S THE CAPACITY TO GROW UP TO 250 HOMES TO ADD 13 HOLE GOLF COURSE TO ADD A HOTEL. BUT AS OF TODAY, WHAT IS BEING COMMITTED TO AND LAUNCHED IS THIS 90 HOME PROPERTY ANCHORED AROUND THE SECOND SURF LAGOON.

YOU'VE GOT THE VISION PICTURES, WHICH REALLY TRY AND CAPTURE BOTH THE CENTRAL TEXAS LANDSCAPE, AS WELL AS THE CALIFORNIA SURF CULTURE, AND REALLY WORK ON DESIGNS THAT DRAW PEOPLE OUTSIDE TO CONNECT IN, IN THE IN THE NATIVE ENVIRONMENT. SO THIS IS THE SITE TODAY. I DON'T KNOW HOW MANY OF YOU HAVE HAD AN OPPORTUNITY TO GO TO THE SITE.

IT'S EASTERN MCLENNAN COUNTY, VERY PASTORAL, PASTORAL LAND. AND A REALLY SIGNIFICANT SECTION OF THE SITE IS PRETTY HEAVILY WOODED AND A NATIVE AND HERITAGE TREE KIND OF, WE CALL IT FOREST. BUT THAT'S A UNIQUE TERM FOR TEXAS. RIGHT. AND YOU'LL SEE ON THE SITE PLAN THAT MUCH OF THAT HAS BEEN PRESERVED. SO CALLING IT THE HUNDRED ACRE WOOD. THERE YOU GO.

I'M SORRY. WE CALL IT THE HUNDRED ACRE WOOD FOR CORRECTION. AND SO AT THE HEART OF THE COMMUNITY, YOU SEE, THIS IS THE VISION FOR THE NEW WAVE POOL AND THE 90 LOTS SURROUNDING IT. THIS LAKE IS THE THE WESTERN BORDER OF THE PROPERTY. AND YOU CAN SEE THE ORIGINAL WAVE POOL HERE WITH A LOT OF THE CURRENT DESTINATION ASSETS SURROUNDING IT. WELL, THE WHEN YOU LOOK AT THE MASTER PLAN, THE, THE, THE INTENT IS FOR THE SITE TO BE BUILT OVER A 15 YEAR PERIOD IN THE NEAR TERM. THIS 990 LOT SECTION WILL BE BUILT NEXT YEAR. WE HAVE WE'VE GONE THROUGH AND THE PRELIMINARY PLAT PROCESS. THIS SUMMER. WE HAVE INITIAL GRADING PLANS BEING COMPLETED NOW AND CONSTRUCTION PLANS HOPEFULLY WILL GO IN IN THE FIRST QUARTER OF NEXT YEAR. THE THE SIGNIFICANT AMOUNT OF WORK IS IN MOVING THE WATER AROUND ON THE SITE TO GET THE THE LAKES REALLOCATED. AND THE GOAL FOR THAT IS THE INITIAL CONSTRUCTION FOR THAT WILL START THIS YEAR. WITH HOME SITES BEING ABLE TO BE UNDER CONSTRUCTION BY THE MID PART OF NEXT YEAR IN THE FUTURE. THERE'S A VISION FOR THE ADDITION OF A 13 HOLE GOLF COURSE RV DESTINATION, A HOT SPRINGS SPA AND A HOTEL PROPERTY AS WELL. SO IN TERMS OF THE COMMUNITY ITSELF, THE VISION FOR THESE 90 LOTS IS THAT YOU WILL HAVE THE HOMES ALL ORGANIZED AROUND THE CENTRAL LAGOON. THE, THE, THE TOPOGRAPHY IS DESIGNED IN SUCH A WAY THAT REALLY THE EACH OF THE HOMES WILL HAVE A VIEW OF THE WATER. SO THERE ARE WATERFRONT HOMES SIMILAR TO THE WATERFRONT AMENITIES THAT PARIS AND TEAM ARE DOING ON THE RIVERFRONT. AND THE HOMES ARE EITHER SINGLE FAMILY HOMES, THREE, FOUR AND FIVE BEDROOM OR TWO AND THREE BEDROOM TOWNHOMES. YOU CAN SEE THE UNIQUE FOOTPRINT HERE. THIS IS THE HUNDRED ACRE WOOD THAT'S BEING PRESERVED IN THAT CORRIDOR. AND YOU CAN SEE THE CLUSTERING OF THE SINGLE FAMILY HOMES AND TOWNHOMES AROUND THE PERIMETER.

[01:05:01]

WHEN YOU LOOK AT THIS, THE OTHER THING THAT YOU'LL SEE ON THIS LIST WITH AUSTIN SURF CLUB AND THE UTAH PROJECTS AND CABO, AS DAVID MENTIONED BEFORE, THESE ARE ALL PROJECTS THAT ARE LOOKING TO CREATE A SURF DESTINATION AS PART OF A MASTER PLAN COMMUNITY, BUT THEY DON'T HAVE A CURRENTLY OPERATING LOCATION. AND SO A NUMBER OF THEM HAVE PROBABLY DONE HAD A BETTER TRACK RECORD WITH THE RESIDENTIAL REAL ESTATE THAN THEY HAVE WITH THE AMENITY. AND SO WE THINK THE APPROACH THAT WACO HAS IS SO UNIQUE AND LENDS ITSELF TO A LOT OF SUCCESS IN TERMS OF OPERATIONS. AS YOU ALL WILL RECALL, THERE WAS A CONSENT APPROVED IN APRIL FOR THE CREATION OF A MUD TO TO DO THE PUBLIC FINANCE FOR THIS PROJECT. THE INTENT IS THAT THE MUD WILL CONSTRUCT THE PUBLIC INFRASTRUCTURE FOR THE MASTER PLANNED COMMUNITY. THE. THE.

ALL OF THE OOPS, SORRY, ALL OF THE ROADS ALONG THE. THE SITE. WITH THE EXCEPTION OF THESE INTERIOR CUL DE SACS INTO THE NEIGHBORHOOD WILL BE MUD OWNED INFRASTRUCTURE. THE. THE PRIVATE STREETS, WHICH WILL BE THE CUL DE SACS WITHIN THE. WITHIN THE HEART OF THE COMMUNITY WILL BE MAINTAINED AND OPERATED BY THE PROPERTY OWNERS ASSOCIATION. WACO SURF WILL ALSO HAVE A PROPERTY MANAGEMENT FOR THE HOMES. BECAUSE IT'S EXPECTED THAT A NUMBER OF THESE WILL NOT BE PRIMARY RESIDENTS. SO TO ENSURE THE QUALITY AND THE UPKEEP AND ALSO OPERATE A RENTAL POOL SO THAT THEY CAN USE THOSE TO SUPPLEMENT VISITORS TO THE TOURISM PART OF THE BUSINESS. IN ADDITION TO ICON BEING A VERY SUSTAINABLE DESIGN FOR THE HOMES, THE CIVIL INFRASTRUCTURE IS ALSO DESIGNED TO BE SUSTAINABLE WITH WATER RECLAMATION AND RECYCLING OF. THERE'S A TREMENDOUS AMOUNT OF STORAGE ON SITE, AND SO THE GOAL IS FOR THE SITE TO BE NET NEUTRAL FOR ALL NON-POTABLE WATER USES. I THINK I'VE MENTIONED BEFORE AND AS PART OF THE PLANNING PROCESS, THIS WAS CONFIRMED AS WELL, THAT THE SINGLE FAMILY PORTION OF THE PROPERTY WILL BE IN A CONDO ASSOCIATION, AND THEY WILL BE

[01:10:06]

AND SO WE'LL NEVER BE THAT. WE'VE ALWAYS PRIDE OURSELVES ON BEING THE BLUE COLLAR SURF CLUB, AND WE'RE THE PEOPLE'S POOL, AND WE'RE ALWAYS GOING TO BE ALLOWING PEOPLE TO COME. AND EVEN THOUGH WE'RE BUILDING THIS DEVELOPMENT, ONLY 30% OF THAT, OUR SURF CAPACITY IS GOING TO BE TRANSITIONED OUT TO THE GUESTS AND OR TO THE MEMBERS. 70% OF OUR SURF TIME WILL BE PUBLIC ALWAYS. AND SO WE'RE GOING TO HAVE TWO POOLS NOW FULLY OPEN TO THE PUBLIC. AND SO YOU SEE, THESE NUMBERS ARE VERY CONSERVATIVE, BUT JUST BASED ON THE SIZE OF OUR SECOND POOL AND BASED ON CAPACITY OF OTHER POOLS OF SIMILAR STATURE ALL OVER THE WORLD, THESE NUMBERS, YOU COULD REALLY SEE THEM GO. AND THESE ARE PEOPLE THAT ARE COMING TO WACO. YES, THEY'RE COMING TO WACO SURF. BUT WITH ALL THIS COOL THINGS HAPPENING IN WACO, THEY'RE GOING TO COME OUT AND SEE WACO AND USE WACO. AND YOU PROBABLY SEEN I MEAN, THIS COOL VIDEO CAME OUT TWO MONTHS AGO, AND TONY HAWK WAS AT THE LOCAL SKATE PARK, AND HE WAS THERE AT SIX IN THE MORNING. HE ALL SHAKING YOUR HEADS. YOU'VE SEEN IT. I MEAN, AS MUCH AS WE LIKE TO THINK HE CAME OUT TO SURF THERE, TO SKATE THAT PARK IN WACO, LIKE HE WAS ACTUALLY COMING TO SURF. RIGHT. AND SO BUT HE COMES OUT THERE AT SIX IN THE MORNING, DOES A LITTLE SKATE SESSION, SHOOTS HIS BOARD UP IN THE AIR AND HE'S LIKE, COME AND GET IT, AUTOGRAPHS IT, AND LEAVES. AND THEN AND THEN PEOPLE CAME DOWN AND LIKE, HE HUNG OUT FOR A MINUTE AND SKATED WITH LOCAL WITH EVERYBODY THERE. AND IT'S LIKE, THESE ARE THE TYPE OF PEOPLE THAT NOT ONLY JUST COME TO SEE WACO SURF, BUT THEY'RE INGRAINING THEMSELVES INTO THE COMMUNITY AND GOING TO EXPLORE ALL THE AMENITIES THAT WACO HAS TO OFFER, WHICH IS A PERFECT TRANSITION. THE THE LAST AND KIND OF UNIQUE THING ABOUT THE PROJECT IS THE COMMUNITY ISN'T A REPLACEMENT FOR THE DESTINATION. THE GOAL IS THAT THE DESTINATION CONTINUES TO GROW AND THAT THE BRANDING AROUND THAT WHICH. LUCKILY IT'S NO LONGER BSR AND IT'S WACO SURF. WACO IS IN THE NAME. THE BRANDING AROUND THAT IS REALLY SOMETHING, I THINK, THAT BENEFITS BOTH THE CITY AND WACO SURF. AND SO AS AN EXAMPLE, THERE WAS A HIGHLY COMPETITIVE RFP THAT WENT OUT LAST YEAR TO LOCATE THE WHAT'S CALLED THE SWATCH NINES SURF EVENT. THEY DO THESE EXTREME SPORTS. SO THERE'S ONE FOR SNOW SPORTS AND AND OTHERS. AND THIS ONE IS THE SURF EVENT. THEY COMPETED WITH LOCATIONS ALL OVER THE WORLD IN JAPAN, ALL OVER. AND WACO SURF WON THE HOSTING. AND THEY HAVE THAT FOR THE NEXT THREE YEARS. NOW. IT'S A CONSIDERABLE INVESTMENT ON THEIR PART. THE SPONSORSHIPS, 200,000 A YEAR EACH OF THE YEARS AND. BUT THE EVENT IS INCREDIBLE IN ITS REACH. THERE ARE LOTS OF NUMBERS ON THIS SLIDE, BUT I THINK THE ONE THAT STANDS OUT IS THE MEDIA REACH IS OVER A BILLION MEDIA TOUCHES. AND. AND

[01:15:05]

OTHER CITIES HAVE DONE IT, BUT I THINK IT'S UNIQUE TO WACO. AND THEN LAST, SHARING OF THE ECONOMIC BENEFITS. THOSE ARE ALL THINGS THAT ARE WRAPPED UP INSIDE THE MDA, THE SPAS OR STRATEGIC PARTNERSHIP AGREEMENT IS BETWEEN THE CITY AND THE DISTRICT, WHEREAS THE MDA IS BETWEEN THE CITY AND THE DEVELOPER. OKAY, SO THE SPA IS AN ATTACHMENT TO THE MDA, BUT IT COMES THE ACTION TO APPROVE THE SPA COMES LATER AND I'LL TALK ABOUT THAT IN A SECOND.

IT'S KIND OF THE MIDDLE STEP BETWEEN ETJ AND FULL ANNEXATION. WE'LL TALK MORE ABOUT THAT IN SOME DETAIL HERE IN A SECOND. DEFINES THE ROLES OF THE PARTIES AND TALKS ABOUT DEBT ISSUANCE AND HOW THAT'S TO BE STRUCTURED. SO WITH REGARD TO THE MUD, THE MUNICIPAL UTILITY DISTRICT, THE BOARD IS THE DEVELOPER NOMINATES FIVE CANDIDATES FOR THE BOARD. THE CITY MANAGER HAS AN OPPORTUNITY TO REVIEW THOSE APPOINTMENTS AND REJECT ANY THAT HE MIGHT FEEL SORRY. IT'S NECESSARY. AND THERE'S A PROCESS FOR HOW THAT DISPUTE IS RESOLVED. BUT IT GIVES US SOME SOME LOOK INTO THE FOLKS THAT ARE GOING TO RUN THE MUD. THE STRATEGIC PARTNERSHIP AGREEMENT IS AGAIN, BETWEEN THE DISTRICT AND THE CITY. IT GETS INTO MORE DETAILS ON WHO OWNS CONSTRUCTION, MAINTAINS INFRASTRUCTURE. IT TALKS A LOT ABOUT THE DEBT

[01:20:02]

EVERYTHING HAS TO MATURE BY THEN. AND YOU THINK, WOW, THAT'S WAY OUT. YOU HEARD THE TIMELINE EARLIER OF THE STEPS AND THE PROCESS AND BUILDING DIFFERENT PHASES OVER TIME. SO YOU THINK OF ISSUING A 30 YEAR NOTE IN 15 YEARS FROM NOW WHEN WHEN THEY'RE WORKING ON THE HOTEL, FOR EXAMPLE, THAT GIVES THAT WINDOW OF TIME FOR THE ALL THE PHASES TO BE STARTED AND THE INFRASTRUCTURE TO BE BUILT AROUND THAT. AND THEN YOU HAVE A TIME FRAME THAT SAYS, OKAY, ANY DEBT AFTER THAT, IT CAN'T BE LONGER THAN THAT. SO THAT, AGAIN, FENCES PARAMETERS AROUND THE PROJECT. AND OF COURSE, IT MUST BE APPROVED BY THE VOTERS IN THE DISTRICT. AND THOSE ARE GOING TO BE PEOPLE THAT LIVE THERE AS YOU EXPECT. BUT THAT'S THAT'S THE AMERICAN WAY, RIGHT? YOU HAVE A CHANCE TO VOICE YOUR CONCERN OVER WHAT'S ISSUED AND WHAT'S AFFECTING YOU, WHAT'S AFFECTING YOUR TAX RATE. AND THAT'S WHAT THEY'LL BE ABLE TO DO. AND AGAIN, THE TAX IS LEVIED TO REPAY THE BONDS. SO FROM A DEVELOPMENT STANDPOINT, THE TERMS THE CONCEPT PLAN IS IS THE GUIDING DOCUMENT IN THE MDA. IT TELLS US WHAT'S GOING TO BE BUILT. WE I THINK IT'S TYPICAL THAT YOU MIGHT SEE AN AGREEMENT WHERE YOU HAVE. IF MORE THAN 10% CHANGES FROM HERE TO THERE. WE DIDN'T DO THAT HERE. IT DIDN'T MAKE SENSE TO DO THAT REALLY HERE. WE FELT IT WAS MORE APPROPRIATE TO SAY, THERE'S GOING TO BE SOME FLEXIBILITY IN THIS CONCEPT PLAN AS WE MOVE FORWARD. MAYBE THERE'S MORE HOUSES, MAYBE THERE'S LESS HOUSES, MAYBE THERE'S MORE HOTEL, MAYBE THERE'S THERE'S ALL KINDS OF DIFFERENT THINGS THAT CAN HAPPEN WITHIN THE CONCEPT. SO THE WAY WE STRUCTURE THIS IS IF THERE'S A USE THAT IS DIFFERENT FROM WHAT'S IN THE PLAN TODAY, THEN WE NEED TO HAVE A CONVERSATION, RIGHT? SO THAT GIVES THE CITY SOME PROTECTION AS TO WHAT'S GOING TO BE OUT THERE. NOW, YOU KNOW WHAT'S GOING TO BE OUT THERE. IT'S JUST A MATTER OF QUANTITY WITHIN THAT CAN CHANGE. AND THAT MAKES SENSE FOR THIS PROJECT. THE PROPERTY IS VESTED. THAT'S A LEGAL TERM. I'LL LEAVE IT AT THAT. KRISTIN. SORRY. AND THEN BUILDING CODES. THAT WAS ANOTHER THING WE TALKED ABOUT A LOT. IT'S IN THE IT'S OUTSIDE OF THE CITY. IT HAS UNIQUE DESIGN, UNIQUE BUILDS. YOU KNOW, WE ARE GREAT. I THINK OUR DEVELOPMENT SERVICES TEAM IS GREAT AT TRADITIONAL BUILDS, PLAN, REVIEW, INSPECTION, THOSE KINDS OF THINGS. THIS IS UNIQUE. THIS IS DIFFERENT. AND SO WE'RE NOT GOING TO BE A PART OF THAT. THEY'RE GOING TO CARRY THAT BALL. THEY'RE GOING TO DEVELOP AND BUILD ACCORDING TO THE CODES THAT ARE APPLICABLE TO THEM, THINGS THAT THEY UNDERSTAND MUCH BETTER THAN WE UNDERSTAND. AND THEN FROM AN INFRASTRUCTURE STANDPOINT, WE SPENT A LOT OF TIME ABOUT WATER AND SEWER TALKING ABOUT WATER AND SEWER. RIGHT NOW THERE IS IT'S IN THE IT'S IN THE CCN OF THE CITY OF WACO FROM BOTH WATER AND WASTEWATER PERSPECTIVES. BUT THERE IS SERVICE LINES THROUGH THE PROPERTY FROM EOL, WHICH IS ELK OAK LAKE. WATER SERVICE CORPORATION. SO THERE'S ABILITY TO SERVE THESE 90 HOMES FROM THE LINES THAT ARE ALREADY IN THE GROUND AND THE METERS THAT THEY HAVE, THEY'RE RELOCATING SOME OF THOSE METERS. AND SO THE INITIAL PHASE ONE WILL BE PROVIDED BY EOL IN THE AGREEMENT ALLOWS FOR THAT IN THE FUTURE. AS YOU TALK ABOUT HOTELS AND ALL THESE OTHER TYPES OF THINGS, THERE'S GOING TO HAVE TO BE A CONNECTION TO MUNICIPAL WATER AT SOME POINT IN TIME. AND WE'VE BEEN WORKING WITH THEIR TEAM FROM AN ENGINEERING PERSPECTIVE, CONCEPTUALLY, LAYING OUT HOW THAT WOULD LOOK AND WHERE IT WOULD COME FROM AND AND WHAT SIZE LINES AND ALL THOSE KINDS OF THINGS. WE'RE NOT READY TO PULL THE TRIGGER ON THAT BECAUSE THEY DON'T NEED IT RIGHT NOW. BUT IT IS SOMETHING THAT WE'VE SPOKEN OF IN THIS AGREEMENT, AND IT WILL BE ADDRESSED LATER THROUGH AN AMENDMENT OR THROUGH ANOTHER AGREEMENT. AT THAT TIME, WASTEWATER, OBVIOUSLY, THESE THESE HOMES HAVE TO HAVE A PLACE FOR THE WASTEWATER TO GO. AND SO THEY WILL BUILD THEIR COLLECTION AND TREATMENT SYSTEM IN A WAY THAT ALLOWS IT TO DRAIN, ESSENTIALLY GRAVITY FLOW TO A POINT THAT COULD BE THE CONNECTION OF THE CITY SEWER WHEN IT COMES IN LATER. BUT AT THAT POINT, THERE'LL BE A TREATMENT PLANT FOR THIS SYSTEM MANAGED BY THE DISTRICT, OWNED BY THE DISTRICT, FUNDED BY THE DISTRICT TO TREAT THEIR WASTEWATER. AND THEN THE EFFLUENT FROM THE FROM THE PLANT CAN BE RECYCLED BACK INTO THE PROPERTY. IT CAN BE PUT INTO A WATERWAY, ANYTHING. SO

[01:25:03]

AND THEN ON THE ROADS AND DRAINAGE SIDE, SARAH MENTIONED THIS EARLIER, UNIQUE, DIFFERENT.

HOW THEY DO THINGS IS DIFFERENT. AND WE'VE ESSENTIALLY SAID TO THEIR ENGINEERING TEAM, DESIGN WHAT YOU NEED TO DESIGN TO MAKE YOUR, YOUR PROJECT WORK, JUST DON'T AFFECT PEOPLE NEXT DOOR TO YOU, RIGHT? BECAUSE THAT'S ESSENTIALLY WHAT STORM DRAIN STORM DRAINAGE ISSUES ARE ABOUT REALLY IS HOW DO YOU AFFECT PEOPLE DOWNSTREAM? AND SO IN A VERY SIMPLISTIC WAY OF THINKING, THAT'S THE WAY DRAINAGE IS GOING TO WORK. IT'LL BE DESIGNED, REVIEWED BY OUR TEAM, BUT AS LONG AS IT DOESN'T AFFECT DOWNSTREAM PEOPLE, THAT'S WHAT WE'RE LOOKING FOR.

AND ON THE ROAD SIDE OF THINGS, WE'VE SPENT A LOT OF TIME UNDERSTANDING THAT, YOU KNOW, A LOT OF THE ROADS WILL PROBABLY BE CRUSHED. GRANITE OR SIMILAR RURAL KIND OF FEEL TO THEM. I THINK IT'LL BE AWESOME FOR THE DEVELOPMENT. IT'S NOT AWESOME FOR US TO MAINTAIN BECAUSE WE DON'T KNOW HOW TO, SO THEY'LL MAINTAIN IT. OUR CONCERN, OUR BIGGEST CONCERN ABOUT THE ROADS WAS, ARE THE ROADS GOING TO BE ABLE TO HOLD UP A FIRE TRUCK? BECAUSE FIRE SERVICE IS ONE OF THE THINGS THAT WE'VE TALKED ABOUT. SO THAT'S ONE OF THE BIG THINGS, AND WE'VE TALKED ABOUT THAT DESIGN IS IN THE DOCUMENT OF HOW THAT CAN WORK. MAKE SURE THE ROADS CAN HOLD A FIRE TRUCK FROM AN ANNEXATION, SALES TAX AND TERM STANDPOINT, FULL ANNEXATION CAN OCCUR. IT'S NOT OBLIGATED TO OCCUR, BUT IT CAN OCCUR AFTER SOME THINGS ARE MET. MILEPOSTS ARE MET, 90% OF THE INFRASTRUCTURE IS COMPLETE. THAT INFRASTRUCTURE NECESSARY TO SERVE THE CONCEPT PLAN. THE DEVELOPERS FULLY REIMBURSED FOR ANY FRONTING OF THE COST THAT HE OR SHE MAY HAVE IN THE PROCESS. 90% OF THE BONDS ARE ISSUED FOR THAT. SO WE'RE NOT HAVING TO WORRY ABOUT UNDERSTANDING. IS THERE GOING TO BE ADDITIONAL ISSUANCES? NO. WE KNOW 90% OF THEM HAVE BEEN ISSUED. AND OF COURSE, THE DISTRICT IS FUNDING ITS OBLIGATIONS AS WELL. THAT'S FULL ANNEXATION. WE'RE NOT DOING THAT. THAT'S AN OPPORTUNITY FOR THE COUNCIL WAY DOWN THE ROAD TO THINK ABOUT WHAT WE ARE DOING IS WHAT'S CALLED LIMITED PURPOSE ANNEXATION. AND TYPICALLY THIS APPLIES ONLY TO CITIES OF CERTAIN POPULATIONS. IN THIS CASE, BECAUSE WE'RE WORKING WITH A DISTRICT, WE CAN ENTER INTO A STRATEGIC PARTNERSHIP AGREEMENT WITH THEM, AN SPA THAT SAYS, OKAY, WE WILL ANNEX YOU FOR LIMITED PURPOSES. AND IN THIS CASE, THE LIMITED PURPOSES IS REALLY SOLELY TO COLLECT SALES TAX IN THE DEVELOPMENT. THEN IT GIVES US AN OPPORTUNITY TO PROVIDE FIRE SERVICE, WHICH IS SOMETHING THAT'S BENEFICIAL FOR BOTH THE CITY OF WACO AND ALL THE FOLKS WHO VISIT. THE SALES TAX HELPS PAY FOR THAT. AND THAT'S ALL WRAPPED UP IN THE SPA OR THE STRATEGIC PARTNERSHIP AGREEMENT.

THERE IS AN INCENTIVE BACK TO BACK TO THE DEVELOPER THAT WE'VE BEEN WORKING ON ESSENTIALLY ANY OF THE SALES TAXES AT ROUGHLY THREE AND A THIRD MILLION, WE GET THE FIRST.

WE GET THAT JUST TO MAKE SURE WE WE HAVE ENOUGH MONEY TO PAY FOR FIRE SERVICE. RIGHT. AND THAT'S ABOUT $50,000 IN REVENUE AFTER THAT. AND SARAH MENTIONED THERE AT NINE, I THINK TODAY.

AFTER THAT, WE WILL SHARE 45% BACK TO THEM. WE'LL KEEP 55%. AND IT'S A, IT'S A GOOD WAY FOR US OBVIOUSLY, TO, TO PAY FOR OUR SERVICES. AND BEYOND THAT, EVEN. AND IT ALSO PROVIDES AN ADDITIONAL INCOME STREAM FOR THEM TO HELP MOVE THE PROJECT FORWARD AND DO THE THINGS THAT THEY WANT TO DO. SO WE FELT LIKE THIS WAS A GOOD WAY TO APPROACH HOW THOSE SERVICES ARE PROVIDED, HOW THE SALES TAXES ARE COLLECTED AND LEVIED, AND HOW THAT CAN HELP INCENT THE PROJECT GOING FORWARD. AND WE'VE RUN THOSE THROUGH 2049. WE FELT LIKE THAT WAS, AGAIN, PART OF THE TIME FRAME AS YOU LOOK AT THE OVERALL DEVELOPMENT AND THAT REBATE COMING BACK TO THEM, WHAT THAT MEANS. IT'S 45 YEAR AGREEMENT OR UNTIL FULL ANNEXATION AND THE AGREEMENT ENDS IF THE DISTRICT IS NOT CREATED BY THE T, C, Q SO WHAT'S NEXT? THE DISTRICT PETITION WILL BE SUBMITTED BY THE DEVELOPMENT TEAM, LIKELY BY THE END OF THE CALENDAR YEAR.

SO WHAT WE'RE SHOOTING AT THEN THE STATE DOES ITS THING FOR A YEAR OR SO AND WE'LL SEE WHAT HAPPENS. BUT HOPEFULLY THEY GET IT DONE IN NINE MONTHS ONCE THE DISTRICT IS CREATED. BECAUSE YOU REMEMBER, THE STRATEGIC PARTNERSHIP AGREEMENT IS WITH THE DISTRICT, RIGHT? WHEN THAT HAPPENS, THEY'RE CREATED. THEN THE CITY COUNCIL CAN APPROVE THE STRATEGIC PARTNERSHIP AGREEMENT WITH THE DISTRICT. YOU WILL ALSO APPROVE THE LIMITED PURPOSE ANNEXATION SERVICE PLAN FOR THE DISTRICT THAT PROVIDES FIRE SERVICE AT THAT POINT. THEN ONCE THAT'S DONE, ALL OF THE LEGAL REQUIREMENTS WILL BE MET. SALES TAX WILL COME BACK INTO THE

[01:30:03]

THEY ARE A LITTLE CONCERNED ABOUT DO THEY HAVE ENOUGH WATER TO TO DO ALL OF THIS? YOU CAN CERTAINLY UNDERSTAND THEIR PERSPECTIVE. WE HAVE TALKED WITH THEM ABOUT, LET'S SEE WHAT THE DEMAND IS GOING TO BE. AND THEN IF THERE'S AN ISSUE THERE, WE HAVE GROUNDWATER RIGHTS IN THE CITY THAT WE AREN'T USING THAT WE COULD LEASE TO THEM AND THEY COULD MEET THE DEMANDS FOR THE 9890 HOMES IF THEY NEED ADDITIONAL HELP FROM US. SO SOMETHING THAT MIGHT COME UP LATER MAY NOT. WE'RE WORKING THROUGH THE ENGINEERING OF THAT, AND WE'LL CERTAINLY RELY ON ON YA'LL TO GIVE US THEIR THOUGHTS ON THAT. BUT THAT'S SOMETHING THAT COULD COME TO YOU LATER.

SO THAT'S A QUICK SYNOPSIS OF WHERE WE ARE FROM A STAFF PERSPECTIVE LEGALLY, WHERE WE ARE AND ACTIONS THAT THE COUNCIL WILL BE ASKED TO MAKE IN THE FUTURE. I'LL BE GLAD TO ANSWER ANY QUESTIONS, ANY QUESTIONS FOR THE DESPERADOS? I SHOULD SAY FIRST, I'M REALLY EXCITED ABOUT THIS PROJECT. I'VE GOT FRIENDS FROM CALIFORNIA WHO VISITED AND THEY LOVE IT AND SPEAK HIGHLY OF IT, AND THEY SOLD ME ON IT. I'VE GOT A COUPLE OF QUESTIONS TO MAKE SURE I UNDERSTAND. SO UNDER THIS ARRANGEMENT, I THINK THESE ARE JUST FOR PAUL. UNDER THIS ARRANGEMENT. DO THE CITY GET ANY PROPERTY TAX? WE DO NOT KNOW. OKAY. CAN YOU WALK ME THROUGH THE SALES TAX INCENTIVE AGAIN? JUST SURE. SO WE THE LIMITED PURPOSE ANNEXATION ALLOWS US TO TO LEVY AND COLLECT A SALES TAX. THAT'S THAT HAS TO HAPPEN. THE SBA HAS TO BE APPROVED. ONCE THAT'S DONE, WE WILL CONTACT THE CONTROLLER AND SHOW THAT WE ARE COLLECTING 1.5% TAX. RIGHT NOW, SALES ARE ABOUT 9 MILLION TAXABLE SALES. WHAT WE'VE DONE IS SAY, OKAY, LET'S LET'S JUST MAKE SURE, RIGHT, BECAUSE WE WANT TO MAKE SURE THAT IF WE PROVIDE FIRE SERVICE, WE GET THE MONEY TO DO THAT $50,000 WE THINK WILL COVER ANY COST. SO WHAT WE'VE DONE ESSENTIALLY SET A FLOOR. SO THE FIRST 3.3 IN TAXABLE SALES REVENUES OF 50,000 COME TO US BEFORE WE START SENDING ANY BACK TO THE DEVELOPMENT. SO THAT'S ESSENTIALLY HOW IT'S GOING TO WORK. THERE'LL BE A FLOOR. NOW, THE TRUTH, THE REALITY THE DAY THAT THE COUNCIL ANNEXED THE PROPERTY AND STARTS LEVYING THAT, YOU'LL BE LEAVING IT ON NINE, NOT THREE, BECAUSE NINE IS THE CURRENT. SO YOU'RE GOING TO BE WELL ABOVE THE THRESHOLD OR THE FLOOR. AND SO YOU'LL BE ABLE TO START AT 9 MILLION SHARES, ROUGHLY. IT'S $135,000 A YEAR IN TAXES. 100 OF IT WOULD COME TO THE CITY AND 35 WOULD GO BACK TO THE DEVELOPER ROUND NUMBERS. RIGHT. SO THE DAY THAT YOU LIMITED PURPOSE TO ANNEX IT, YOU'RE NOW ON THE PATH TO COLLECTING ABOUT $100,000 A YEAR IN CITY SALES TAX, AND YOU'LL BE REBATING BACK TO THEM ABOUT 35,000. AND THAT'S, THAT'S HOW IT'S GOING TO WORK IN REALITY. BECAUSE I GET YOUR QUESTION. YEAH, I THINK SO. THAT'S VERY HELPFUL IN THAT. CAN I, I JUST WANT TO FOLLOW UP ON THAT SAME CONCEPT RIGHT NOW. IT IS NINE, RIGHT? IT IS NINE. AND SO THE FIRST 3.3 GETS TO 50. AND THEN YOU SPLIT 5545 ON THE NEXT SIX. BASICALLY IT ALREADY EXISTS.

YES, SIR. AND ON IN THE FUTURE IF THEY HIT 30. SURE. GREAT. THAT'S AWESOME. YEAH. AND THAT'S JUST THE FOR THE SERVICE OF FIRE SUPPRESSION FIRE SERVICE. YES, SIR. FIRE SERVICE MEDICAL WILL BE PROVIDED SEPARATELY, JUST LIKE THEY ARE RIGHT NOW VIA AMR IN THE COUNTY.

WE CAN SERVICE THAT FIRE THROUGH EXISTING FACILITIES AND OPERATIONS. WE CAN, WE CAN. WE WE'VE GOT THE FIRE STATION OUT AT TSC. RIGHT. IS THAT THE CLOSEST? THAT'S THE CLOSEST, I BELIEVE. RIGHT. THAT STATION ALSO HAPPENS TO BE THE SLOWEST STATION IN THE CITY. AND WITH THE EVENTS THAT THEY'RE GOING TO BE HAVING, CERTAINLY, YOU KNOW, THAT'S, YOU KNOW, WE WANT TO WHEN PEOPLE COME TO WACO, WE WANT THEM TO BE SAFE AND TAKEN CARE OF. AND PROVIDING FIRE SERVICES IS THAT COMES WITH THE WHAT IS THERE'S A PROPER NAME FOR IT, BUT MASS, MASS EVENT, MASS GATHERINGS, THE MASS GATHERING ORDINANCE. WE'VE TALKED ABOUT THAT AS WELL. AND THAT'S WHENEVER THE SERVICE PLAN IS ADOPTED BY THE COUNCIL AND THE SBA IS ADOPTED. THAT'S A DISCUSSION THAT YOU CAN HAVE AT THAT POINT IN TERMS OF WHAT ORDINANCE NEEDS TO APPLY. AND I THINK THAT'S A GOOD ONE. CERTAINLY FROM A SAFETY STANDPOINT. AND WE. THAT'S AN

[01:35:01]

THANK YOU ALL FOR THE PRESENTATION. I WHEN I SERVED ON THE TEXAS TRAVEL ALLIANCE BOARD, I HAD THE PRIVILEGE OF OF HEARING DAVID TALK ABOUT WACO SURF TO PEOPLE WHO SOLD TOURISM FOR A LIVING. AND THEY LOVED IT. AND, YOU KNOW, IT IS A WACO HAS MANY JEWELS THAT WE STAND INDEPENDENTLY TO OFFER THE WORLD. AND RIGHT THIS MINUTE, THAT IS ONE OF THEM. I THINK IT IS AN AMAZING DEVELOPMENT THAT YOU HAVE DONE AND PUT YOUR SPIN ON TO ELEVATE WHAT BSR WAS. AND I'VE NEVER I'VE NOT BEEN, BUT I'VE HEARD AMAZING THINGS. AND THERE'S VIDEO FOOTAGE OF LIKE KYLE DEVORE SURFING OR SOMETHING SOMEWHERE IN THE INTERWEBS. I, WHEN I HEARD ABOUT THE THINGS I, I GRILLED PAUL FOR DAYS. HE'S PROBABLY GLAD HE'S LEAVING BECAUSE I'LL LEAVE HIM ALONE ABOUT. YOU KNOW WHAT THIS MEANS FOR. WACO RESIDENTS. AND WE CAME DOWN TO NOTHING THAT. YOU KNOW, THE REQUEST THAT YOU ALL HAVE BALANCES AND BASICALLY PAYS FOR ITSELF AND WHAT YOU'RE REQUIRING OF US. I MEAN, SHOULD THE THINGS GO THROUGH AND ALL THE THINGS ARE COMPLETE, WHAT YOU'RE REQUIRING OF US AND THEN WHAT YOU'RE OFFERING TO US. SO WE LIKE THAT. AND WE LIKE THE FACT THAT THE OPPORTUNITY IS TO EXPAND WHAT, WHAT IT LOOKS LIKE.

I, I DO WANT TO, YOU KNOW, WHEN WE TALK ABOUT FUTURE CASTING, NO ONE KNOWS WHAT THAT MEANS UNTIL WE KNOW WHAT IT MEANS. AND SO THE CLOSEST WE CAN GET TO A TIME FRAME FOR THAT, WHAT YOU KNOW, BECAUSE IN MY NOTE, I WROTE DOWN WHAT IS DEFINED LATER ON WHAT THE GROUNDWATER LEASE, YOU KNOW, BECAUSE WE DON'T KNOW THE ANSWERS TO THAT. BUT SOMEWHERE IN THE WORLD, AS WE'RE PULLING THESE THINGS TOGETHER AND GETTING THE AGREEMENTS TOGETHER, IT WOULD BE HELPFUL FOR ME TO KNOW IF WE'RE TALKING 2010 YEARS FROM NOW, WE'RE TALKING FIVE YEARS FROM NOW, WE TALK. WHAT ARE WE TALKING? JUST BECAUSE THAT THAT WILL BE REFLECTIVE OF HOW WE WORK AND MOVE WATER? I MEAN, BECAUSE THAT'S THE GOAL RIGHT NOW. WATER AND GROUND LEASES ARE THE GOLD RIGHT NOW, AND WE WANT TO BE AS PROTECTIVE AND AS HELPFUL AS WE CAN AT THE SAME TIME. SO TIMING IS A THING FOR ME. BUT YEAH, I THINK IT'S A COLLECTIVELY, I THINK IT'S COOL.

I THINK THAT I, I'VE BEEN FOLLOWING 3D PRINTED NEIGHBORHOODS FOR A WHILE. I, I'D LIKE TO SEE WHAT HIGH END 3D PRINTED HOMES LOOK LIKE BECAUSE THERE ARE SEVERAL COMMUNITIES, BUT I DON'T KNOW THAT I HAVE SEEN THEM AT THIS CALIBER. SO I'M CURIOUS TO SEE HOW IT WORKS OUT. BUT I THINK THAT IT'LL JUST BE ANOTHER JEWEL IN THE CROWN. SO YOU BET.

AND COUNCIL MEMBER, I CAN SAY A LITTLE TO TIMING. SO ONE OF THE THINGS I REALLY RESPECT ABOUT THE DEVELOPMENT PLAN IS IT'S DESIGNED TO STAND ALONE. IF YOU ONLY DID THE 90 HOMES, THE PROJECT CAN SELF SUSTAIN FINANCIALLY AND OTHERWISE. RIGHT? THE THE WAVE POOL, ALL OF THE THINGS CAN GENERATE THE RETURN NEEDED TO MAKE THE PROJECT STAND ON ITS OWN. AND IF YOU ONLY DID THOSE, YOU COULD GET BY WITH A SMALL OF AN ASSESSMENT ON THE MUD AS $0.40, YOU KNOW, PRETTY REASONABLE FOR THE HOMEOWNERS. WHAT TRIGGERS THE NEED FOR ANY OF THE OFF SITE INTERCONNECTIONS IS THE, I THINK THE, THE CURRENT PROJECT WITH THE GOAL IN THE CITY IS WHEN THAT INTERCONNECTION OCCURS, WHICH THERE'S A THIRD PARTY THAT SOME THAT SOMEWHAT INFLUENCES THAT. BUT ALSO IT'S WHETHER THEY MOVE FORWARD WITH ANY OF THE OTHER USES HOTEL BEING ONE OF THE BIGGEST, YOU KNOW, WATER USES. AND SO THE WHAT WE HAVE BEEN ABLE TO DO KIMLEY-HORN CARLOS IS HERE HAS DONE SOME PRELIMINARY ENGINEERING AND COORDINATED WITH CHARLES LEE AND HIS TEAM ON HOW YOU WOULD GET THE OFF SITE, WHAT PREFERRED ROUTES, WHAT INTERCONNECTIONS WOULD BE DONE TO, TO DO THE OFF SITES HAVE GIVEN US SOME ROUND NUMBERS, AND WE'VE DONE THE ANALYSIS TO SHOW THAT EVEN AT $0.70, YOU CAN SUPPORT THE OFF SITES AND THE FUTURE EXPANSION OF CIVIL INFRASTRUCTURE, WHICH IS ALSO REASONABLE, YOU KNOW,

[01:40:05]

OR I SHOULD SAY ASSESSMENT. THE ATTORNEYS DOWN HERE ARE LOOKING AT ME. GOT IT. CAN YOU CONFIRM IN THE THE MASTER DEVELOPMENT AGREEMENT WHEN IT TALKS ABOUT THE CITY ASSUMING THE ROADS ON THE PROPERTY, IT STATES THAT THEY WOULD HAVE TO MEET OUR STANDARD ORDINANCES. IS THERE AN IMPLIED CPI RATING WITHIN THAT, OR WOULD WE, IF THEY WERE BUILT INITIALLY TO THE STANDARDS ORDINANCES AND THEY FALL INTO 20% CPI BY 2075? ARE WE THEN ACCEPTING THAT MAINTENANCE COST IN PERPETUITY? NO, WE WOULDN'T ACCEPT. THERE'S THERE'S NOT A SPECIFIC PCI OR SORRY, PCI CONDITION INDEX ASSOCIATED WITH THAT. THE WAY IT'S STRUCTURED NOW IS IT WOULD HAVE TO BE BROUGHT TO CITY STANDARDS, WHICH WOULD MEAN IT WOULD HAVE TO BE PAVED, DESIGNED AND BUILT LIKE A CITY ROAD. RIGHT. THERE WILL BE OPTIONS FOR BOTH CITY AND DEVELOPER TO CONSIDER LATER. FOR EXAMPLE, YOU COULD CHOOSE THAT THOSE WILL STAY PRIVATE ROADS MAINTAINED BY HOA, EVEN ANYTHING LIKE THAT LATER. SO YOU COULD YOU COULD SAY THOSE ARE GOING TO BE PRIVATE ROADS THAT THE CITY WON'T MAINTAIN. GOTCHA. SO YOU COULD DO THAT.

THEN YOU COULD SAY THAT THEY NEED TO BE BROUGHT TO CITY STANDARD. THERE'S LOTS OF DIFFERENT OPTIONS YOU WOULD HAVE AT THAT POINT. GOTCHA. GREAT. I KNOW THAT AND IT'S A VERY DIFFERENT DEAL. BUT WITH THE ENTITY THAT WAS CREATED FOR RIVERWAY, WE HAVE SPECIFIED 80% PCI OR HIGHER WHEN WE ASSUME THE ROADS IN 20 PLUS YEARS. SO I DIDN'T KNOW IF THERE WAS A WAY TO PUT THAT INTO A FUTURE AGREEMENT FOR. IT'S A GREAT POINT. WHAT WE STRUGGLED WITH WAS IT'S IT WOULDN'T HAVE A PCI TO BEGIN WITH IF IT WERE BRAND NEW, RIGHT? IT'S KIND OF A REALLY NICE GRAVEL ROAD WITH A NICE MESH BASE UNDERNEATH IT AND A COATING ON TOP. SO IT'S, IT'S SO UNIQUE. IT PROBABLY WOULDN'T EVER GET A PCI FROM US TO BEGIN WITH. YEAH. SO IT'S AN OPPORTUNITY, I THINK, FOR US TO SAY AT THE AT POINT IN TIME. AND THAT'S WHERE THE CITY STANDARD ORDINANCE COMES IN ON THE ROAD. GREAT. YES, SIR. AWESOME. OTHERWISE, AND EVEN WITH THAT BEING CONSIDERED SUPPORTIVE OF THE PROJECT, THRILLED TO SEE THIS KIND OF DEVELOPMENT COME TO WACO. AS WITH CATALYST BEFORE YOU GUYS IN THE PRESENTATION, I AM OPEN AND EXCITED FOR ANY DEVELOPMENT OR DEVELOPER THAT IS COMMITTED TO OUR CITY FOR THE LONG TERM, AND ESPECIALLY IN THE ENVIRONMENT RIGHT NOW. FROM A MACROECONOMIC STANDPOINT, TO BE FRONTING THE RISK ON PUTTING SOMETHING LIKE THIS IN OUR CITY, THAT THAT STANDS TO BENEFIT US GREATLY, BUT ALSO HAS WITH THAT POTENTIAL GREAT BENEFIT COMES A POTENTIAL LARGE RISK FOR, FOR YOU GUYS. SO REALLY APPRECIATIVE OF THE COMMITMENT YOU HAVE TO OUR CITY. AND MY DAUGHTER LOVES THE BEACHFRONT AT THE AT THE SURF POOL. SO WE ARE BIG FANS AND I'M EXCITED TO SEE HOW THIS PLAYS OUT. THANK YOU. ANYTHING ELSE GUYS? GREAT PRESENTATION. SUPER EXCITED ABOUT WACO SURF AND THE DESPERADO PROJECT, AND THANKS FOR ALL THE WORK YOU PUT INTO IT. EXCITING WORLD CLASS. I MEAN, 3D PRINTED HOMES IS GOING TO BE SUPER UNIQUE FOR WACO, TEXAS SURF CULTURE. I LOVE WACO BEING THE THE CENTER OF TEXAS SURF CULTURE. I LOVE THAT, I LIKE THE VISION, YOU KNOW, JUST SOME OF THE PRETTY PICTURES IN THERE AROUND THE NATURAL LANDSCAPING, WHICH IS SO I'M A COUNTRY GUY, I LOVE THE, I LOVE THE NATURAL VIEW THERE OF, OF FULLY LANDSCAPE, WHICH IS BASICALLY A NATIVE PLANTS. I HOPE THAT HOPE THAT WORKS OUT LIKE THAT. AND I THINK WE TALKED ABOUT PROOF OF CONCEPT ON, ON PARIS DEAL. AND I THINK YOU GUYS HAVE A LITTLE BIT OF PROOF OF CONCEPT, BUT PEOPLE WILL COME TO WACO IF THERE'S SOMETHING LIKE THIS HERE. AND, AND YOU GUYS KIND OF EXPANDING ON THAT CONCEPT AND MAKING IT EVEN MORE SPECIAL. MY HAT'S OFF TO YOU FIGURING THIS OUT. I KNOW THAT EARLY ON, WE FELT LIKE THERE WAS SOME HURDLES WITH PERHAPS WATER AND WASTEWATER AND GETTING CITY SERVICES OUT THERE. BUT PAUL AND SARA AND TEAM, I APPRECIATE YOU COMING UP WITH KIND OF

[01:45:04]

AND WE'RE GOING TO BE VOTING ON THIS TONIGHT. AND THIS, THE MDA AND THE OR MOVING FORWARD WITH AN MDA AND THE LIMITED PURPOSE ANNEXATION. THE LPA IS THE ONE THAT WILL HAVE THE THE WATER, THE FIRE SERVICE. AND IT SEEMS LIKE THAT'S TONIGHT'S THE TONIGHT'S THE MDA AND THE SPA AND THE LIMITED PURPOSE ANNEXATION CANNOT OCCUR UNTIL THE DISTRICT IS FORMALLY CREATED. GOT IT. AND THAT'S 18 MONTHS FROM NOW ROUGHLY. MAYBE HOPEFULLY SOONER. BUT BUT WE FELT LIKE IT WAS IMPORTANT TO REALLY NEGOTIATE THAT AS THOROUGHLY AS WE COULD, SO THAT THERE WEREN'T ANY SURPRISES FOR EITHER PARTY. SO WE FEEL LIKE IT'S READY TO GO AS SOON AS THE DISTRICT IS CREATED BY T, C, Q, THEN WE CAN WORK WITH KRISTIN AND HER TEAM TO TO GO THROUGH THE PROCESS OF. THERE SOME PUBLIC HEARINGS REQUIRED FOR THE SPA AND THE LIMITED PURPOSE ANNEXATION. SO WE WANTED IT READY TO GO WHERE WE WERE. WE FELT LIKE WE ALL UNDERSTOOD WHAT WHAT WE WERE COMMITTING TO 100%. THE SBA IS, IS DRAFTED, AGREED TO BY THE PARTIES. IT'S IN THE PACKET. WE JUST WANT TO FORMALLY APPROVE IT UNTIL THE DISTRICTS CREATED. GOT IT. ONE MORE POINT OF CLARIFICATION. THE LIMITED PURPOSE ANNEXATION PROTECTS US FROM HAVING TO DO THE SORT OF CONTIGUOUS MAP ALL THE WAY OUT TO CORRECT. SO. SO WE'RE NOT GOING TO BE RESPONSIBLE FOR ANYTHING IN BETWEEN EITHER. IS THAT CORRECT? I JUST WANTED TO BE SURE. YES, SIR. AND THE MUD IS WHAT GIVES YOU THE OPPORTUNITY TO DO THE LIMITED PURPOSE AT THE SIZE OF GREAT, GREAT. ALL RIGHT. THANKS A LOT, GUYS. THANK YOU. APPRECIATE IT. OKAY. CITY MANAGER HOLT, WE HAVE WE'RE GOING TO HAVE TIME FOR THIS. DO WE HAVE TIME FOR THE LAST ITEM NUMBER 493. ALL RIGHT. I'LL INVITE CLINT PETERS, DIRECTOR OF DEVELOPMENT SERVICES, UP FOR OUR FINAL SESSION FOR 93. DISCUSSION OF PUBLIC HEARING ITEMS. BRIEFLY. THANK YOU, MANAGER HOLT. MAYOR, CITY COUNCIL, WE DO HAVE SEVEN PUBLIC HEARINGS TONIGHT. THREE ARE VOLUNTARY ANNEXATIONS, TWO BEING CITY OWNED PROPERTIES AND ONE BEING A PRIVATE, PRIVATELY OWNED VOLUNTARY ANNEXATION. THREE ZONING CASES AND ONE ABANDONMENT. ALL ARE RECOMMENDED FOR APPROVAL BY THE PLANNING COMMISSION. I DID WANT TO HIGHLIGHT FOUR OF THESE PUBLIC HEARINGS FOR YOU, BUT HAPPY TO ANSWER ANY QUESTIONS ON ANY OF THEM. SO THE FIRST ONE IS PUBLIC HEARING. 515 THIS IS A ZONE CHANGE. THE. 24012413 MAPLE AVENUE AND 2410 2418 CUMBERLAND AVENUE. THIS IS ACTUALLY TWO PARTS. THERE WAS A REQUEST FROM CAMERON PHIL GREEN ON THE 1901 NORTH 25TH STREET FROM OH THREE TO R3C AND THEN THE CITY. AND I'LL SHOW YOU SOME MAPS OF THE CITY EXPANDED THAT REQUEST BASED ON SOME MISMATCHED ZONING WITH WHAT'S ACTUALLY ON DEVELOPED IN THE NEIGHBORHOOD. ACTUALLY, RIGHT BEFORE THIS MEETING, WE GOT A REQUEST FROM MR. PHIL GREEN TO WITHDRAW HIS PART OF THE APPLICATION, BUT THAT WE FEEL LIKE THE CITY IS PART OF THE APPLICATION IS IMPORTANT TO MOVE FORWARD WITH THAT, WE WOULD LIKE THE COUNCIL TO MOVE FORWARD WITH THE CITY PART OF THE REQUEST. SO HERE'S THE PROPERTIES. THIS IS AT 25TH IN MAPLE, RIGHT BEFORE YOU GET TO SAINT LOUIS CHURCH. IT THIS IS THE PROPERTY THAT THE ORIGINAL APPLICANT REQUESTED. MR. PHIL GREEN IT WAS AN OFFICE BUILDING THAT'S BEEN VACANT FOR APPROXIMATELY TEN YEARS THAT THEY WERE LOOKING AT DOING A RENOVATION. AND THEN WHEN WE STARTED LOOKING AT THE REST OF THE BLOCK, THERE ARE SIX SINGLE FAMILY HOMES THAT HERE ARE THE PROPERTY, HERE'S THE THE PROPERTY AND THEN THE HOMES ON THAT BLOCK. AND WHEN WE STARTED LOOKING AT THE ZONING, YOU CAN SEE THE OH THREE ALONG 25TH STREET, BUT THEN YOU HAD THOSE SIX HOMES THAT ARE ZONED R3E, WHICH IS A HEAVY, HIGH DENSITY RESIDENTIAL DISTRICT. AND SO WE FELT LIKE DOWN ZONING THOSE TO A R TWO MADE SENSE TO GET THOSE MORE IN CONFORMANCE WITH WHAT'S ACTUALLY BUILT ON THE SITE. THIS WAS WHAT THE ZONING WOULD CHANGE TO. AGAIN, NOW THAT MR. GREEN HAS REQUESTED TO WITHDRAW HIS PORTION OF IT, THAT WOULD

[01:50:04]

YEP. THAT'S CORRECT. SO THE PURPLE AREA IS THE 1901 NORTH 25TH STREET WOULD BE WITHDRAWN, AND THEN THE REST OF IT WOULD BE MOVED FORWARD. GOT IT. AND YOU CAN SEE IT ACTUALLY LOWERS THE OVERALL DENSITY FOR IT. AND THEN OBVIOUSLY BRINGS THOSE HOUSES INTO CONFORMANCE WITH OUR ZONING ORDINANCE. AND PLANNING COMMISSION DID RECOMMEND APPROVAL OF THAT. AND THE NEXT CASE I WANTED TO HIGHLIGHT IS 255516. THIS IS A NORTH 18TH STREET IN GORMAN, 908 NORTH 18TH STREET, AND THEN 1809 AND 1817. GORMAN. THIS IS A CHANGE. IT'S IT'S KIND OF A UNIQUE PROPERTY BECAUSE IT'S MADE UP OF ABOUT FOUR AND A HALF LOTS. AND THEN THERE'S FIVE DIFFERENT DWELLING UNITS, THREE HOUSES AND SOME SOME BACK HOUSES, GARAGE APARTMENTS. BUT IT ALL FUNCTIONS KIND OF AS ONE PROPERTY. THERE'S SOME INTERNAL COURTYARDS TO IT, AND THERE'S A OWNER THAT'S BOUGHT IT THAT'S FIXING ALL THE HOUSES UP, CLEANING THE PROPERTY UP AND WANTING TO USE IT FOR A USE THAT NEEDS A ZONE CHANGE. IT CURRENTLY IS IN OUR URBAN RESIDENTIAL LAND USE PLAN, WHICH DOES ALLOW OH THREE IF YOU'RE ALONG A ARTERIAL CORRIDOR, WHICH IT IS, YOU CAN SEE THERE'S A OH THREE SCATTERED AROUND UP THAT CORRIDOR, 18TH STREET CORRIDOR. AND SO IT WOULD CHANGE THE OH THREE TO ALLOW THEM TO TO CONSOLIDATE THAT INTO ONE PROPERTY. AND FOR A DEVELOPMENT THAT THEY'RE WORKING ON. HERE'S THE HOW THE HOMES ON IT. AND THEN ACROSS THE STREET, THERE'S A CHURCH AND THERE'S OTHER OFFICE AND MIXED USE UP AND DOWN THAT CORRIDOR. WE DID GET THERE WAS A SPEAKER THERE, A NEIGHBOR THERE THAT HAD SOME CONCERNS AND QUESTIONS, AND THE APPLICANT WAS ABLE TO MEET WITH THEM AFTER THE PLANNING COMMISSION MEETING AND ADDRESS THEM. AND SO PLANNING COMMISSION DID RECOMMEND APPROVAL OF THE ZONE CHANGE ON THIS ONE. ARE YOU DONE WITH THAT? SURE. ON THIS ONE. DIRECTOR PETERS. THERE WAS SOME I WATCHED THE PLANNING COMMISSION MEETING AND THERE WAS SOME DIALOG DRIFT INTO TRANSITIONAL SHELTER, BUT THAT THAT WOULD BE A WHOLLY DIFFERENT PERMIT AND A DIFFERENT PUBLIC HEARING AND A DIFFERENT. YES, YES. SO IT'S FOR WHAT THEY'RE SPECIFIC PURPOSE IS IT'S A TWO STEP PROCESS. THEY HAVE TO GET IT REZONED, AND THEN IT WOULD HAVE TO COME THROUGH WITH A SEPARATE APPLICATION THROUGH A SPECIAL PERMIT PROCESS BEFORE THEY CAN EVEN OPERATE IT AS A TRANSITIONAL SHELTER. THEY WOULD NEED THE PERMIT PRIOR TO JUST CHANGING THE THE ZONING DOESN'T GIVE THEM AN AUTOMATIC. THAT'S CORRECT. I JUST WANT TO MAKE THAT CLEAR. OKAY. THANKS.

AND THEN THE NEXT TWO, I WANTED TO HIGHLIGHT SOMEWHAT GO TOGETHER. 517 AND 518. THESE ARE ANNEXATIONS OF CITY OWNED PROPERTIES. IN RECENT CYCLES OF THE TEXAS LEGISLATURE, THEY CHANGED THE LAW TO ALLOW CITIES TO USE ROADWAYS TO GET TO PROPERTIES TO ANNEX IT. SO IT IT MADE POSSIBLE SOME OF THE PROPERTIES, CITY OWNED PROPERTIES, FACILITIES AROUND TOWN FOR THE CITY TO ANNEX IT. SO WE STARTED EVALUATING OUR CITY OWNED PROPERTIES. AND THERE'S ACTUALLY FOUR PROPERTIES THAT WE'RE LOOKING AT. WE'RE BRINGING TWO TONIGHT.

AND THEN THERE'S TWO OTHERS THAT WILL BRING TO YOU IN THE FUTURE, THE FOUR BEING THE THE BUSTER CHATHAM PROPERTY ON THE BRAZOS RIVER, THE TRANSFER STATION ON UNIVERSITY PARKS.

THOSE ARE THE TWO TONIGHT. AND THEN THE OTHER TWO THAT WE'LL BRING TO YOU IN THE FUTURE ARE WACO CENTRAL SEWER PLANT AND THEN THE OLD LANDFILL OUT ON OLD ARENA. WE'RE STILL WORKING THROUGH SOME OF THE STATE REQUIREMENTS FOR THOSE TWO PROPERTIES, BUT THESE ARE READY TO GO. SO THE PURPOSE OF THAT IS TO INCORPORATE EXISTING CITY OWNED PROPERTIES IN THE CITY LIMITS, MAKE SURE IT IS GOOD PRACTICE TO HAVE CITY OWNED PROPERTIES IN YOUR CITY LIMITS.

IT BRINGS CONSISTENCY WITH PLANNING, ZONING, BUILDING CODE REQUIREMENTS, MUNICIPAL SERVICES SUCH AS POLICE AND FIRE CODE ENFORCEMENT ADMINISTRATION, AND SUPPORTS OUR LONG TERM MANAGEMENT OF CITY FACILITIES. IT ALSO ALLOWS, YOU KNOW, WITH WITH THE EVER

[01:55:06]

WE'RE DOING AGAIN, NO PRIVATE PRIVATELY OWNED PROPERTIES BEING ANNEXED. THE CITY'S ETJ WILL NOT BE EXPANDING, AND THEN NO CHANGES TO NEIGHBORING PROPERTIES. SOME OF THE OTHER THINGS THAT WE GOT QUESTIONS ON, HOW DOES IT IMPACT ADJACENT PROPERTY OWNERS? IT REALLY DOES NOT. THERE IS NO PROPERTY TAXES, NO UTILITY SERVICES, NO, NO ZONING. JUST THE ZONING APPLIES TO THE PROPERTY THAT'S BEING ANNEXED. AND THEN THE CITY HAS NO PLANS OR INTENT TO ANNEX ANY OTHER PROPERTY. IT DOES HAVE TO BE VOLUNTARY RIGHT NOW. SO IN STATE LAW, SO, YOU KNOW, WE IF AN ADJACENT PROPERTY OWNER WANTED TO REQUEST AN ASSOCIATION, THAT WOULD BE SOMETHING THAT COULD BE COULD BE CONSIDERED, BUT NOT THE CITY IS NOT INTENDING TO ANNEX ANY PRIVATE PROPERTY. SO TO GIVE A LITTLE MORE SPECIFICS ABOUT THE TWO THAT WE HAVE TONIGHT, PUBLIC HEARINGS, THE FIRST BEING 517. THIS IS THE BUSTER CHATHAM RIVERBEND AREA. THIS IS ABOUT 153 ACRES OF LAND RIGHT ALONG THE BRAZOS RIVER. YOU CAN SEE OUR CITY LIMITS. IT'S THAT BLUE DOTTED LINE. DO FOLLOW UP THE BRAZOS RIVER. AND THIS IS ADJACENT CONTIGUOUS TO OUR CITY LIMITS ALONG THE RIVER. HERE'S THE PROPERTY. IT DOES HAVE A FRONTAGE ON THESE COUNTY ROADS BUSTER CHATHAM AND THEN RIVERBEND. STATE LAW DOES REQUIRE THAT WE ANNEX THE ADJACENT COUNTY ROADS. SO THOSE ROADS WOULD BE BROUGHT INTO THE CITY AS WELL. THE THE CURRENT COMPREHENSIVE PLAN DOES CALL FOR RURAL RESIDENTIAL LAND USE DESIGNATION. AND AS PART AS ANNEXATION, WE DO HAVE TO ZONE THE PROPERTY. AND SO WE ARE RECOMMENDING AND PLANNING COMMISSION IS RECOMMENDING REZONING, WHICH IS OUR LOWEST DENSITY RESIDENTIAL ZONING. IT REQUIRES ABOUT AN ACRE OF LAND PER LOT. AND IT ALLOWS PUBLIC USES AND THEN LOW INTENSITY RESIDENTIAL USES THAT THAT IS THE THE BEST FIT ZONING FOR THE AREA. SO THAT'S WHY WE PICKED THAT. AND THEN HERE'S THE PROPERTY. IT DOES HAVE AN EXISTING HOUSE THAT THE CITY OWNS. IT'S BEING LEASED BACK TO THE PERSON THAT WE BOUGHT IT FROM. AND THEN THE REST OF THE PROPERTY IS FARMLAND. IF IF YOU ALL RECALL, THIS PROPERTY WAS PURCHASED BACK IN 2023 BY THE CITY FOR THE POTENTIAL FUTURE WASTEWATER TREATMENT PLANT, SATELLITE PLANT TO SERVE THE GROWING AREA OF CHINA. SPRING IN THAT AREA IN THE FUTURE FOR FUTURE GROWTH. THE CITY HAS NOT AUTHORIZED. COUNCIL HAS NOT AUTHORIZED ANY DESIGN OR PERMITTING FOR THE FUTURE.

WASTEWATER PLANT IN THIS ANNEXATION DOES NOT ACCELERATE OR GUARANTEE THAT THE PLANT WILL BE BUILT. IT IS STRICTLY TO GET IT IN OUR CITY LIMITS. CONSTRUCTION WILL OCCUR ONLY WHEN GROWTH AND CAPACITY IS NEEDED. WE'RE CURRENTLY ANTICIPATING DESIGN TO START APPROXIMATELY IN 2030, AND THEN POTENTIAL OPERATION IN 2034 AT THE SOONEST. BUT THOSE, AGAIN, YOU KNOW, WILL BE DICTATED BY HOW GROWTH HAPPENS IN THAT AREA. THIS ANNEXATION DOES NOT CHANGE THE TIMING OR PLANNING FOR THE FACILITY. IT DOES NOT CHANGE THE PERMITTING REQUIREMENT FOR T C, E, Q, IT DOES NOT ACCELERATE IT. IT'S NOT CONTINGENT ON THE ON IT BEING ANNEXED. WE DID GET A LOT OF OPPOSITION OF THIS AT THE PLANNING COMMISSION. WE HAD NINE SPEAKERS AND FIVE NOTICES, AND THE BIG CONCERN WAS THAT THIS WOULD ACCELERATE OR THIS WAS BEING DONE FOR THE PURPOSE OF BUILDING THE PLANT. AND IT JUST DOESN'T CHANGE ANYTHING WITH THE PLANS FOR THE PLANT. AND JUST TO DRIVE THAT HOME, YOU COULD BUILD THE. AND I THINK THIS PLANT CONCEPT IS SO FAR OFF AND WHO KNOWS HOW TECHNOLOGY WILL CHANGE. BUT YOU COULD BUILD IT THERE, WHETHER IT WAS IN THE ANNEXED OR NOT, WHETHER IT WAS IN THE ETJ OR NOT. THAT'S CORRECT. SO, YOU KNOW, OUR CENTRAL PLANT AND THEN OUR BULLHEAD PLANT ARE BOTH OUTSIDE THE CITY LIMITS. AND, YOU KNOW, WE ARE WORKING ON THE PROCESS OF ANNEXING CENTRAL PLANT. YOU'LL SEE THAT IN FUTURE MEETINGS. BULLHEAD. WE JUST DON'T HAVE THE ABILITY

[02:00:04]

THAT IS A TECH STOP FACILITY. SO THEY'LL KEEP OWNERSHIP OF IT, KEEP MAINTENANCE OF IT, WILL JUST BE USING IT TO GET TO THE PROPERTIES AND ANNEX. SAME THING WITH ZONING, RURAL RESIDENTIAL AND THE RE ZONING DISTRICTS ON THOSE TWO. BOTH OF THOSE WERE RECOMMENDED FOR APPROVAL WITH PLANNING COMMISSION. AND THIS WAS A NINE ZERO VOTE. AND THE BUSTER CHATHAM WAS A SEVEN TWO VOTE. AND WITH THAT, I'D BE HAPPY TO ANSWER ANY QUESTIONS. ANY QUESTIONS FOR DIRECTOR PETERS ON THE ON THE HEARINGS TONIGHT? OKAY. THANKS, CLINT. APPRECIATE IT. ALL RIGHT. ANYTHING ELSE? CITY MANAGER HOLT, THAT WRAPS US UP, SIR. THAT DOES WRAP US UP AND WE WILL NOW MOVE TO COUNCIL REQUEST FOR FUTURE ITEMS TO BE DISCUSSED. WE'RE SCHEDULED FOR UPCOMING CITY COUNCIL MEETINGS. ANYBODY HAVE ANY FUTURE AGENDA ITEMS YOU'D

[EXECUTIVE SESSION]

RECONVENE THE REGULAR SESSION FOR EXECUTIVE SESSION AS READ INTO THE RECORD BY THE CITY SECRETARY

* This transcript was compiled from uncorrected Closed Captioning.