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[00:00:05]

>> MAYOR NIRENBERG: GOOD AFTERNOON, EVERYONE.

WELCOME TO OUR CITY COUNCIL B SESSION AG JN DA.

THE TIME IS TWO VOON P.M.

WE'LL START WITH OUR ROLL CALL.

>> CLERK: YES, SIR.

>> CLERK: MAYOR, WE DO HAVE A QUORUM.

>> MAYOR NIRENBERG: ALL RIGHT.

WE HAVE TWO ITEMS ON THE AGENDA TODAY, SO CITY MANAGER SCULLEY.

>> SCULLEY: THANK YOU, MAYOR AND COUNCIL.

GOOD AFTERNOON.

TWO ITEMS FIRST HAVING TO DO WITH OUR HOUSING PROGRAMS, AND SECONDLY A MILITARY AFFAIRS

[1. Briefing on proposed amendments to the Center City Housing Incentive Policy (CCHIP) and replacing the Inner City Reinvestment/Infill Policy (ICRIP) with the City of San Antonio Fee Waiver Program. [Lori Houston, Assistant City Manager; John Jacks, Director, Center City Development and Operations]]

PRESENTATION.

SO FIRST, WE'RE GOING TO BEGIN WITH A REVIEW OF OUR CITY INCENTIVES FOR OUR CENTER CITY COMMERCIAL AND RESIDENTIAL PROJECTS, INCLUDING OUR CENTER CITY HOUSING INCENTIVE PROGRAM IN THE INNER CITY REIB VESTMENT PROGRAM.

CITY STAFF HAVE REVIEWED BOTH PROGRAMS AND YOU'LL RECALL BACK IN OCTOBER OF 2017, THE MAYOR AND COUNCIL REQUESTED A REVIEW OF THESE INCENTIVE PROGRAMS. THE PROGRESS WE'VE MADE THROUGHOUT THE COMMUNITY AS WELL AS THE IMPACT.

AND SO WE PRESENTED THE PROGRAM RECOMMENDATIONS THAT HAVE BEEN DEVELOPED OVER THE PAST YEAR AND A HALF WITH INPUT FROM THE COMMUNITY.

WE PRESENTED THAT TO THE ECONOMIC AND WORKFORCE DEVELOPMENT COMMITTEE TWICE, AND TO THE COMPREHENSIVE PLAN COMMITTEE.

IN ADDITION, STAFF HAS INCORPORATED THE FEEDBACK FROM THE AFFORDABLE HOUSING DEVELOPMENT COMMUNITY AS WELL AS PRIVATE DEVELOPERS AND INPUT FROM DOWNTOWN STAKEHOLDERS WHERE MANY OF THESE INCENTIVES ARE CENTERED.

AND ALSO FROM HOUSING TASK FORCE MEMBERS.

THE PROPOSED CCHIP, AS WE REFER TO IT AND CITY FEE WAIVER PROGRAMS ARE IN LINE WITH THE SA TOMORROW COMPREHENSIVE PLAN, BY FOCUSING ON DENSITY, ALIGNING INCENTIVES WITH FUTURE LAND USE THAT ARE RECOMMENDED AND ENSURING THAT OUR ECONOMIC DEVELOPMENT INCENTIVES ARE ALIGNED WITH OUR PLANNING EFFORTS.

IT ALSO ADDRESSES SPRAWL BY EXCLUDING ELIGIBILITY OVER THE RECHARGE ZONE, LIMITED PURPOSE ANNEXATION AND OUR EDJ AREAS.

THE FEE WAIVER PROGRAMS ARE ALIGNED WITH THE MAYOR'S HOUSING TASK FORCE THAT JUST COMPLETED ITS WORK A COUPLE OF MONTHS AGO.

HOUSING PROGRAMS. ALSO BY PRIORITIZING CITY INCENTIVES FOR AFFORDABLE RENTAL UNITS AT 60% AMI WITH ALLOWING FLEXIBILITY TO ACCOMMODATE FAMILIES UP TO 80% AMI AND ALSO ALLOWING OWNERSHIP OF UP TO 120% OF AMI.

ALSO BY ENSURING RENTS CHARGED FOR AFFORDABLE UNITS ARE BOTH RENT AND INCOME RESTRICTED AND CREATE AG DEDICATED REVENUE SOURCE FOR AFFORDABLE HOUSING.

THESE RECOMMENDATIONS THAT WE'LL PRESENT TODAY ENSURE THAT OUR CCHIP AND CITY FEE WAIVER PROGRAMS CONTINUE TO SERVE AS ECONOMIC DEVELOPMENT TOOLS.

FOCUSED ON THE TYPE OF DEVELOPMENT AND GROWTH THAT WE WOULD LIKE TO SEE THAT IS CONSISTENT WITH OUR SA TOMORROW PLAN, AND LEVERAGING AFFORDABLE HOUSING OPPORTUNITIES CITYWIDE.

NOT JUST IN THE CENTER CITY AREA, SO ASSISTANT CITY MANAGER LORI HOUSTON IS GOING TO PRESENT THE RECOMMENDATIONS FOR BOTH PROGRAMS, AND AT THIS TIME AND DEPENDING UPON THE CONVERSATION AND POLICY DIRECTION FROM THE COUNCIL THIS AFTERNOON, WE ARE PREPARED TO BRING THIS FORWARD FOR COUNCIL ADOPTION AT THE DECEMBER 6 CITY COUNCIL MEETING.

SO WITH THAT, I'LL TURN IT OVER TO LORI AND SHE AS WELL AS A NUMBER OF OUR PRIVATE SECTOR DEVELOPMENT PARTNERS ARE HERE IN THE AUDIENCE AS WELL, AND WE ALL CAN ANSWER QUESTIONS FROM THE CITY COUNCIL THIS AFTERNOON.

LORI?

>> HOUSTON: GREAT, THANK YOU, SHERYL AND GOOD AFTERNOON.

TODAY'S BRIEFING IS ON THE CITY CENTER HOUSING INCENTIVE POLICY AND THE INNER CITY REINVESTMENT POLICY.

THE DEPARTMENT ADMINISTER THESE PROGRAMS AND THAT IS BEING LED BY JOHN JACKS AND VER VERONICA GARCIA.

AND BOTH OF THESE PROJECTS OR PROGRAMS PROVIDE ELIGIBLE PROGRAMS AS OF RIGHT INCENTIVES PROVIDED THEY MEET CERTAIN REQUIREMENTS.

IN JANUARY OF 2018 THE

[00:05:06]

SAN ANTONIO CITY COUNCIL CONSIERED A MORATORIUM WHICH WAS APPROVE ON THE CENTER CITY HOUSING POLICY REQUESTING THAT STAFF EVALUATE THE CCHIP AND RETURN TO CITY COUNCIL WITH A RECOMMENDATION.

THIS WAS HAPPENING WHILE WE WERE ALSO EVALUATING THE INNER CITY REINVESTMENT INFILL POLICY.

THE CHANGES THAT WE ARE PROPOSING TODAY ARE BASED ON SEVERAL PUBLIC MEETINGS AND STAKEHOLDER MEETINGS, AS WELL AS THE SA TOMORROW PLAN AND THE MAYOR'S HOUSING TASK FORCE REPORT.

AND I WANT TO STRESS THAT THIS POLICY WAS DONE IN COORDINATION WITH THE HOUSING AND NEIGHBORHOOD SERVICES DEPARTMENT, WHICH IS LED BY VERONICA SOTO.

I'D LIKE TO THANK THEM FOR THEIR SUPPORT.

I'D ALSO LIKE TO RECOGNIZE SEVERAL MEMBERS OF THE AUDIENCE WHO HAVE HELPED US COORDINATE, REVIEW AND ANALYZE THIS POLICY TO INCLUDE JENNIFER GONZALES AND MICHAEL SHACKLEFORD WITH ALAMO GROUP.

DAVID ATAMAN WITH ULI AND AREA REAL ESTATE, BEB GRA GUR ERRA WITH MLP, JIM, LELA AND SEVERAL OTHERS -- IF I FORGOT YOUR NAME, I APOLOGIZE.

I ALSO SEE EDDIE ROMERO WITH CENTRO WHO'S BEEN A GREAT PARTNER AS WE'VE REVIEWED THESE POLICIES.

SO THIS HAS NOT BEEN DONE IN A VACUUM.

IT'S BEEN DONE WITH A LOT OF STAKEHOLDER INPUT, AND THE STAKEHOLDER INPUT WILL CONTINUE PRIOR TO WE BRINGING THIS FORWARD TO COUNCIL ON DECEMBER 6.

THE FIRST POLICY I'LL TALK ABOUT IS INNER CITY REINVESTMENT INFILL POLICY.

THIS POLICY WAS ADOPTED IN 2010 AND WAS A RESULT OF THE EAST SIDE SUMMITS THAT WERE HELD ON THE EAST SIDE AND SEVERAL RECOMMENDATIONS WERE MADE TO INCLUDE THE DEVELOPMENT OF FEE WAIVER PROGRAM THAT HELPS SMALL BUSINESSES AND ECONOMIC DEVELOPMENT IN THE INNER CITY.

THE ICRIP IS A A PLACE-BASED STRATEGY.

IT FOCUSES ON 84-SQUARE MILE AREA, AN 84 SQUARE MILE AREA, AND THAT BOUNDARY WAS BASED ON SEVERAL CONDITIONS TO INCLUDE VACANCY RATES, POVERTY LEVELS, EDUCATIONAL ATTAINMENT.

SINCE 2010, THE CITY HAS ISSUED OVER 11,000 FEE WAIVERS THAT REPRESENT A TOTAL OF INVESTMENT OF 4.4 BILLION.

OF THOSE FEE WAIVERS, THEY HELP FACILITATE OVER 10,000 HOUSING UNITS OF WHICH 42% OF THOSE HOUSING UNITS WERE WORKFORCE OR AFFORDABLE.

THE ICRIP, WHICH IS PLACE-BASED, AS A VERY, VERY PERMISSIVE PRODUCT TYPE, SO PROVIDED YOU'RE WITHIN THAT BOUNDARY, YOU'LL RECEIVE THE FEE WAIVER FOR MIXED USE COMMERCIAL DEVELOPMENT HOUSING DEVELOPMENT.

WHAT THE CITY STAFF IS RECOMMENDING THAT WE REVERT FROM A PLACE-BASED STRATEGY AND GO TO A NEEDS-BASED STRATEGY.

WE'RE RECOMMENDING THAT WE CHANGE THE NAME OF THE ICRIP TO THE CITY FEE WAIVER PROGRAM, AND ONLY PROVIDE FEE WAIVERS ON AN AS OF RIGHT BASIS TO FOUR CATEGORIES: AFFORDABLE HOUSING, OWNER/OCCUPIED REHAB, HISTORIC REHABILITATION, AND BUSINESS DEVELOPMENT AND LEGACY BUSINESS DEVELOPMENT.

SO WE'RE NO LONGER -- AUDIO] -- AND THE MAYOR'S HOUSING TASK FORCE REPORT.

NOW, TO HELP DEFINE THESE FOUR CATEGORIES WE WORKED CLOSELY WITH OUR NONPROFIT PROVIDERS, AND THE HOUSING AND NEIGHBORHOOD SERVICES DEPARTMENT AND OUR FOR PROFIT HOUSING PROVIDERS.

SO FOR AFFORDABLE HOUSING, YOU MUST BE A NONPROFIT OR FOR-PROFIT PROVIDER WHOSE MISSION IS TO PROVIDE AFFORDABLE HOUSING IN ORDER FOR YOU TO RECEIVE THE FEE WAIVER ON AN AS OF RIGHT BASIS.

FOR THE MULTIFAMILY UNITS TO RECEIVE THE FEE WAIVERS, AT LEAST 50% OF THOSE UNITS MUST BE AT AFFORDABLE RATE, OF WHICH HALF OF THOSE NEED TO BE AT THE 60% OR BELOW AMI.

AND THE FOR SALE PRODUCT, IT MUST BE AVAILABLE TO INDIVIDUALS MAKING UP TO 120% OF THE REGIONAL AREA MEDIAN INCOME OR BELOW.

AND THESE TWO REQUIREMENTS ARE IN LINE WITH THE MAYOR'S HOUSING TASK FORCE REPORT THAT SHOWS THAT THE GREATEST NEED FOR THE FOR-SALE PRODUCT TYPE IS BETWEEN THE 60% AND 120% AMI, WE ARE ABLE TO PROVIDE FEE WAIVERS FOR ALL THE HABITAT FOR HUMANITY HOMES.

WE'VE BEEN WORKING WITH THEM FOR THE PAST FOUR YEARS, AND THIS IS WITHIN THAT AMI LEVEL, AND AS WELL AS PROVIDING FEE WAIVERS FOR THE RENTAL PRODUCT THAT'S 60% AMI OR BELOW.

FOR THE OWNER/OCCUPIED REHAB PROGRAMS, WE ARE PROVIDING FEE WAIVERS TO THOSE PARTICIPANTS IN OUR CITY DEPARTMENT PROGRAM, SUCH AS THOSE PROGRAMS THAT THE HOUSING AND NEIGHBORHOOD SERVICES DEPARTMENT PROVIDES OR THE PROGRAMS THAT ARE NONPROFIT PROVIDERS PROVIDE THAT HELP PEOPLE REHAB OR RESTORE THEIR HOME.

THIS WAS ONE OF THE ISSUES THAT

[00:10:01]

WE HEARD A LOT ABOUT WHEN WE WERE GOING OUT INTO THE COMMUNITY.

WE HEARD THIS FROM THE NEIGHBORHOOD GROUPS, WE ALSO HEARD THIS IN THE MAYOR'S HOUSING TASK FORCE REPORT PUBLIC MEETINGS AND THE SA TOMORROW PLAN PUBLIC MEETINGS.

PEOPLE WANT TO HAVE RESOURCES AVAILABLE TO HELP THEM STAY IN THEIR HOME AND REHAB THEIR HOME.

FOR HISTORIC REHABILITATION, WE'LL BE WORKING WITH THE OFFICE OF HISTORIC PRESERVATION TO PROVIDE FEE WAIVERS TO THOSE PROJECTS THAT ARE ELIGIBLE TO BE DESIGNATED.

THEY DO NOT NEED TO BE DESIGNATED.

AND THEN THE LAST IS THE SMALL BUSINESS DEVELOPMENT AND INDUSTRY DEVELOPMENT.

THAT WILL BE FACILITATED BY RENE DOMINGUEZ WHO WILL BE COMING BACK TO CITY COUNCIL IN A B SESSION PROVIDING THE PARAMETERS FOR THAT FEE WAIVER; HOWEVER, THIS IS THE ONLY ONE OF THE CATEGORIES THAT WILL BE PLACE BASED.

AND THESE WILLING BE IN LINE WITH THE SA TOMORROW PLAN, THE REGIONAL CENTER, TO REALLY HELP US UNDERSTAND THE TYPES OF BUSINESSES WE NEED TO SEE WITHIN EACH OF THOSE REGIONAL CENTERS.

NOW, THE FEE WAIVER PROGRAM WILL ALSO APPLY TO LEGACY BUSINESSES, AND A LEGACY BUSINESS IS DEFINED BY 20 YEARS IN OPERATION AND CONTRIBUTING TO THE AUTHENTICITY OR THE CULTURE INTEGRITY OF AN AREA, THIS IS ALSO ADMINISTERED BY THE OFFICE OF HISTORIC PRESERVATION.

ONE OF THE THINGS THAT WE HEARD DWIGHT A BIT THROUGH OUR -- QUITE A BIT THROUGH OUR NEIGHBORHOOD MEETINGS WAS THERE WAS CONCERNED ABOUT SHORT-TERM RENTALS AND WE HAD INITIALLY STATED THAT IF A PROJECT WAS TO RECEIVE CITY-FEE WAIVERS THROUGH THE ICRIP, THEY WOULD NOT BE ELIGIBLE FOR A SHORT TERM RENTAL PERMIT EITHER TYPE 1 OR TYPE 2.

WHEN WE PRESENTED THAT TO THE NEIGHBORHOOD GROUPS, THERE WAS SOME CONCERN THAT IT ONLY BE ELIGIBLE FOR TYPE 2 -- I MEAN, TYPE 1 SHORT-TERM RENTALS.

SO IF YOU ARE AN OWNER/OCCUPIED SHORT-TERM RENTAL, THEY REQUESTED THAT IF THEY'RE DOING IMPROVEMENTS TO THEIR HOME THEY STILL RECEIVE FEE WAIVERS BECAUSE A LOT OF THE NEIGHBORHOODS WERE USING THE SHORT-TERM RENTAL PROGRAM AS A WAY TO MAKE ENDS MEET AND MAKE EXTRA INCOME.

SO IT WOULD NOT BE ELIGIBLE FOR A TYPE 2 PERM IT -- PERMIT, THE HOUSE IS VACANT AND THEY'RE RENTING IT OUT AS A SHORT-TERM RENTAL.

BUT THE FEE WAIVERS WOULD BE ELIGIBLE FOR TYPE 1 SHORT-TERM RENTALS.

SO IN CLOSING ON THE FEE WAIVER PROGRAM, IT MEETS SEVERAL GOALS FIRST, IT FOCUSES ON THE DEVELOPED NEEDS OF THE COMMUNITY VERSUS THE PLACE.

IT PRIORITIZES HOUSING AFFORDABILITY AND AFFORDABLE HOUSING OWNER/OCCUPIED REHAB PROGRAMS. IT PRESR. FS AND PRO TEBLGHTS NEIGHBORHOODS FROM UNWANTED DEVELOPMENT AND TYPE 2 SHORT-TERM RENTALS ICHT SUPPORTS OTHER CITY POLICIES SUCH AS THE SA TOMORROW PLAN AND THE MAYOR'S HOUSING TASK FORCE RECOMMENDATIONS AND IT ALSO SECURES A SECOND ALLOCATION FOR FEE WAIVING FUNDING.

ONE OF THE CONCERNS THAT WE HEARD FROM THE NONPROFIT PROVIDERS IS THAT OUR MULTIFAMILY INCENTIVE PROGRAM, WHICH IS THE CCHIP WOULD EAT UP ALL THE FEE WAIVERS WITHIN THE FIRST QUARTER OF THE YEAR.

SO WHAT WE'RE RECOMMENDING AS PART OF THIS POLICY IS TO DEDICATE A SEPARATE ALLOCATION FOR EACH OF THESE CATEGORIES, SO THERE WILL BE ALL FUNDING AVAILABLE FOR THOSE AFFORDABLE HOUSING UNITS THAT THE HABITAT FOR MEU NANTIES AND OTHER NONPROFIT PROVIDERS FUND.

THE NEXT PROGRAM I'LL TALK ABOUT IS CENTER CITY HOUSING INCENTIVE POLICY WHICH WAS CREATED IN 2012.

THIS WAS CREATED OUT OF THE DOWNTOWN STRATEGIC -- AUDIO] -- INCENTIVES ON AN AS OF RIGHT BASIS TO MULTIFAMILY HOUSING PROJECTS IN THE DOWNTOWN AREA.

NOW, THIS WAS NOT A HOUSING STRATEGY, THIS WAS AN ECONOMIC DEVELOPMENT STRATEGY FOR THE CITY OF SAN ANTONIO.

WITH THE THOUGHT BEING THAT THE HOUSING IS THE FOUNDATION FOR ANY NEIGHBORHOOD.

WHEN YOU SATURATE AN AREA WITH MARKET-RATE HOUSING, YOU PROVIDE MORE DISPOSABLE INCOME WHICH HELPS FACILITATE MORE RETAIL THAT SERVES A NEIGHBORHOOD; THEN YOU'VE CREATED A NEIGHBORHOOD THAT HELPS ATTRACT A VIBRANT WORKFORCE, AND THEN FINALLY IT ALSO HELPS CREATE THE RETAIL THAT TOURISTS LIKE, SO TOURISTS LIKE TO GO WHERE THE LOCALS LIKE TO GO, AND SO IT WILL HELP US EXTEND THE STAYS FOR TOURISTS WHO COME TO SAN ANTONIO.

AND SO THIS IS AN OVERALL STRATEGY FOR ECONOMIC DEVELOPMENT, AND IT STARTS WITH HOUSING IN OUR DOWNTOWN.

NOW, WE STILL HAVE CHALLENGES WITH DOWNTOWN HOUSING, AND THE REASON FOR THAT, THERE ARE SEVERAL UNIQUE CHALLENGES ASSOCIATED WITH DOWNTOWN DEVELOPMENT THAT YOU DON'T SEE OUTSIDE OF DOWNTOWN.

SO LAND PRICES ARE MUCH HIGHER, SOMETIMES TWO TO THREE TIMES HIGHER THAN THEY WOULD BE OUTSIDE OF THE DOWNTOWN AREA.

CONSTRUCTION COSTS ARE HIGHER.

YOU HAVE THE REQUIREMENT BECAUSE YOU HAVE TO BE MORE DENSE TO BUILD PARKING GARAGES VERSUS PROVIDING SURFACE PARKING LOTS.

[00:15:02]

WE HAVE HISTORIC BUILDINGS THAT NEED TO BE RESTORED OR REHABBED.

IF YOU'RE BUILDING IN OUR DOWNTOWNER AREA, THAT COST ADDITIONAL FUNDING, AND THEN YOU ALSO HAVE OTHER REGULATIONS LIKE THE RIVER IMPROVEMENT OVERLAY DISTRICT, AND SO IF YOU'RE DEVELOPING ON THE RIVER AND YOU'RE WITHIN THE RIO, THERE ARE REQUIREMENTS THAT YOUR BUILDING MUCH PROVIDE SO MUCH SUNLIGHT TO THE SAN ANTONIO RIVER.

THAT HAS CERTAIN DESIGN GUIDELINES AND THAT WILL INCREASE YOUR DEVELOPMENT COSTS AS WELL.

WE ALSO DON'T HAVE THE RENTAL RATES THAT SUPPORT OUR DOWNTOWN LAND PRICES RIGHT NOW.

AND UNTIL WE HAVE THAT, THEY'LL ALWAYS NEED TO BE A SUBSIDY FOR DOWNTOWN DEVELOPMENT.

WE HAVE AGED PUBLIC INFRASTRUCTURE, YOU DON'T HAVE THAT IN OTHER AREAS IN THE CITY, AND THEN YOU HAVE IRREGULAR-SHAPED PARCELS.

AND I'LL SPEAK TO THAT LATER ON.

ONE OF THE PROJECTS I'LL HIGHLIGHT IS A MUSEUM REACH LOFT THAT IS ON COUNCIL'S AGENDA TOMORROW AND THAT IS ON A TRIANGULAR SHAPED .6-ACRE PARCEL.

AND TRYING TO DESIGN A PROJECT ON SUCH AN ODD-SHAPED PARCEL CAN BE CHALLENGING AS WELL.

NOW, WHEN WE DEVELOPED THE CENTER CITY HOUSING INCENTIVE POLICY IT PROVIDED PROJECTS THAT WERE ELIGIBLE TO RECEIVE INCENTIVES, ACCESS TO AS OF RIGHT INCENTIVES SUCH AS A TAX REIMBURSEMENT GRANT, CITY AND SAWS FEE WAIVERS.

AND THE CITY AND SAWS FEE WAIVERS ARE ALLOCATED THROUGH THE ANNUAL BUDGET PROCESS.

THE CITY PROVIDES TWO AND A HALF MILLION DOLLARS ANNUALLY THROUGH THE BUDGET ANNUALLY AND SAWS IS ABOUT $3 MILLION ANNUALLY.

WE HAVE A LOW INTEREST LOAN OR GRANT PROGRAM THAT'S FUNDED THROUGH THE CENTER CITY INCENTIVE FUNDS AND FOR THE PAST COUPLE OF YEARS IT'S BEEN ABOUT $2 MILLION ANNUALLY BUT THAT LOAN PROJECT HELPS FEED OTHER PROJECTS IN THE DOWNTOWN AREA.

THOSE ARE THE INCENTIVE THAT'S A DEVELOPER HAS ACCESS TO IF THEY MEET THE REQUIREMENTS OF THE CENTER CITY HOUSING INCENTIVE POLICY.

NOW, THE CCHIP HAS BEEN VERY, VERY SUCCESSFUL SINCE ITS CREATION IN 2012.

WE'VE INCENTED OVER 64 PROJECTS THAT REPRESENT $1.4 BILLION IN INVESTMENT.

THE CITY HAS PROVIDED $102 MILLION IN INCENTIVE THROUGH THE CITY CENTER HOUSING INCENTIVE POLICY THROUGH THAT $1.4 BILLION IN INVEST.

THAT.'S FOR EVERY DOLLAR THE CITY PUTS INTO A PROJECT, WE GET $13 IN PRIVATE INVESTMENT BACK.

NOW, OF THAT $102 MILLION, 76 MILLION OF THAT IS A TAX REBATE, AND THEN 17 MILLION OF IT IS THE SAWS FEE WAIVER THAT IS FUNDED BY SAWS.

THERE'S ONLY ABOUT 9 MILLION OF THE 102 MILLION THAT IS ACTUALLY FROM THE GENERAL FUND, WHICH IS FOR THE CITY FEE WAIVERS AND THE INNER CITY INCENTIVE FUND LOANS.

NOW, THE CCHIP HAS ALSO HELPED US REDEVELOP CERTAIN PROPERTIES THAT NORMALLY WOULD NOT HAVE BEEN DEVELOPED THAT ARE LOOKED AT AS BEING CHALLENGED.

THAT INCLUDES BROWN FIELD SITES.

11 OF THE 64 PROJECTS WERE CONSIDERED OR PERCEIVED TO BE BROWN FIELDS.

SEVEN WERE ON OUR VACANT BUILDING REGISTRY PROGRAM AND 13 SITES WERE VACANT PARKING LOTS.

NOW, SOMETHING TO CONSIDER, 60% OF OUR DOWNTOWN AREA IS A SURFACE PARKING LOT.

AND IT'S VERY CHALLENGING TO CONVERT A PARKING LOT THAT IS TURNING MONEY DAILY INTO A HOUSING PROJECT.

AND SO OUR INCENTIVES HELP MAKE THAT HAPPEN.

NOW, I MENTIONED THAT $9 MILLION OF THE $102 MILLION WAS FROM THE GENERAL FUND, WHICH IS THE CITY FEE WAIVER PROGRAM AND THE INNER CITY INCENTIVE FUND LOAN.

CITY STAFF DID DO AN EXERCISE AT D REQUEST OF COUNCILMAN PERRY THAT LOOKED AT ALL 64 PROJECTS.

WE TOOK THE 64 PROJECTS AND DID A STRAIGHT LINE ANALYSIS, LOOKED AT WHAT THEY WOULD PRODUCE PREDEVELOPMENT AND WHAT THEY WOULD PRODUCE POST DEVELOPMENT IN TERMS OF CITY TAXES AND THE OTHER TAXING ENTITIES.

SO PREDEVELOPMENT, THOSE PROJECTS WERE PROVIDING $350,000 ANNUALLY TO THE CITY OF SAN ANTONIO.

IF THEY ALL DEVELOPED IN YEAR 1, THEY PRODUCED ABOUT $2.3 MILLION ANNUALLY.

SO THAT $9 MILLION THAT THE CITY PROVIDES THROUGH GENERAL FUND WOULD BE PAID OFF WITHIN FIVE YEARS.

NOW, THE CITY OF SAN ANTONIO IS FOREGOING TAXES, AND AFTER THOSE TAX REBATES BURN OFF IN YEAR 16, THAT $2.3 MILLION JUMPS TO $10.1 MILLION.

AND SO IT IS AN INVESTMENT.

WE GET QUITE A BIT BACK, NOT TOO -- WE ALSO GET THE HOUSING, WHICH BRINGS PEOPLE TO DOWNTOWN, WHICH PROVIDE THAT'S DISPOSABLE INCOME, WHICH HELPS CHANGE THAT RETAIL MIX THAT WE WANT TO SEE.

SOMETHING TO ALSO POINT OUT IS THAT YEAR 1 AFTER ALL OF THOSE PROJECTS ARE DEVELOPED, SAISD WILL RECEIVE $16 MILLION IN TAXES AS A RESULT OF THESE 64 HOUSING PROJECTS.

AND SO EVEN THOUGH THE CITY IS

[00:20:01]

FOREGOING TAXES, OUR OTHER TAX ENTITIES CONTINUE TO DEVELOP AND CONTINUE TO RECEIVE A TAX BENEFIT, WHICH IS ABOUT $16 MILLION FOR SAISD.

NOW, WE ALSO DID AN ECONOMIC IMPACT STUDY, AND WE BROUGHT IN STEVE NIVEN FROM ST. MARY'S UNIVERSITY TO DO A STUDY, AND WHAT HE SHOWED WAS THE 64 PROJECTS THAT THE CCHIP FACILITATED WILL ADD OVER 8,000 JOBS TO THE SAN ANTONIO MARKET, IT WILL CONTRIBUTE $1.1 BILLION TO THE GDP, AND HAVE AN OVERALL ECONOMIC OUTPUT OF 2.2 BILLION.

AND THEN THE SALES TAX GENERATED FROM THOSE PROJECTS IS ABOUT $3.2 MILLION.

WE DID ANOTHER STUDY WHICH WAS A PROGRAM ASSESSMENT, AND WE BROUGHT IN TXP, WHICH IS LED BY JOHN HOKENOSE AND ASKED THEM TO DO AN ASSESSMENT OF OUR CCHIP PROGRAM.

THEY INTERVIEWED SEVERAL STAKEHOLDERS TO INCLUDE NONPROFIT AND FOR-PROFIT DEVELOPMENT AND WHAT THEY SHOWED WAS THE CCHIP WAS INSTRUMENTAL IN CLOSING THE GAPS FOR THOSE 64 PROJECTS, AND WITHOUT THE CCHIP THOSE PROJECTS WOULD MOST LIKELY NOT BE HOUSING PROJECTS.

THERE IS A NEED TO CONTINUE INCENTING DEVELOPMENT IN THE DOWNTOWN AREA, BUT THE CCHIP ALONE CANNOT MEET OUR AFFORDABLE HOUSING NEEDS BUT IT CAN HELP SUPPORT AFFORDABILITY.

AND FINALLY, WE NEED TO SHRINK THE BOUNDARIES TO FOCUS ON MORE HOUSING IN THE DOWNTOWN AREA.

NOW, THE CITY OF SAN ANTONIO, WE STILL NEED DOWNTOWN HOUSING AND WE STILL NEED MARKET RATE HOUSING.

THIS IS PART OF OUR OVERALL ECONOMIC DEVELOPMENT STRATEGY FOR THE CITY.

SO A GREAT EXAMPLE OF THIS WOULD BUTS -- BE USAA.

ABOUT A YEAR AGO, CITY COUNCIL APPROVED A DEVELOPMENT AGREEMENT THAT HELPED BRING OVER 2,000 JOBS TO DOWNTOWN SAN ANTONIO OVER THE NEXT FIVE YEARS.

NOW, THAT WAS APPROVED BY COUNCIL IN 2017, BUT IN 2015, USAA PURCHASED 1 RIVERWALK PLAZA.

AT THAT TIME THEY DID A SURVEY, THERE WERE 17,000 EMPLOYEES, AND ASKED THOSE EMPLOYEES WHO'S INTERESTED IN COMING DOWNTOWN.

OF THOSE 17,000 EMPLOYEES, OVER 4,000 SAID THEY'D BE INTERESTING COMING DOWNTOWN.

SO IN 2017, THEY PURCHASED A BANK OF AMERICA BUILDING AND THEY'LL BE MOVING 2000 EMPLOYEES TO OUR DOWNTOWN AREA.

WHAT WE'VE HEARD FROM THE ECONOMIC DEVELOPMENT FOUNDATION AND ECONOMIC DEVELOPMENT DEPARTMENT AND OUR OTHER PARTNERS ARE THAT EMPLOYERS LIKE TO LOCATE WHERE THEIR EMPLOYEES LIKE TO LIVE.

AND SO TO CONTINUE THE REDEVELOPMENT AND TO CONTINUE TO BE ECONOMICALLY COMPETITIVE, WE NEED TO HAVE MARKET RATE HOUSING IN OUR DOWNTOWN AREA.

THIS WAS EVIDENCE IN THE USAA ANNOUNCEMENT, WE HAVE PRICE WATER COOPER HOUSE THAT WILL BE GOING IN THE BURNS BUILDING.

WE HAVE JEFFERSON BANK WHO JUST ANNOUNCED MOVING THEIR HEADQUARTERS TO THE AREA NEAR PEARL, WE HAVE ANOTHER ONE ALONG HOUSTON STREET AND CREDIT HUMAN AND OTHER THAT'S ARE COMING DOWNTOWN.

THEY'RE COMING DOWNTOWN BECAUSE THEIR EMPLOYEES WANT TO BE DOWNTOWN.

THAT'S IMPORTANT THAT WE CONTINUE TO PROVIDE MARKET RATE HOUSING TO BE ABLE TO CONTINUE TO BE A CHOICE FOR MILLENNIALS AND THE WORKFORCE TO COME TO SAN ANTONIO.

AND AS I MENTIONED, THE EMPLOYERS WILL GO WHERE THEIR EMPLOYEES WANT TO LIVE.

NOW, WE'RE PROPOSING FOR THE CCHIP TO EXTND THE PROGRAM FOR TWO YEARS.

AND THE TWO YEARS ARE NECESSARY FOR US TO BE ABLE TO ANALYZE THE PROJECTS THAT HAVE COME ONLINE.

SO SINCE 2012, WE'VE REALLY ONLY HAD 1-C -- ONE CCHIP PROGRAM COME ON LINE IN THE CENTRAL BUSINESS DISTRICT AND THAT WILL BE THE AGAVE PROJECT ON ST. MARY'S AND CESAR CHAVEZ.

WE HAVE SEVERAL UNDER CONSTRUCTION, BUT UNTIL THEY OPEN AND WE CAN SEE THE RENTS AND THE OCCUPANCY LEVELS, IT'S HARD FOR US TO ANALYZE THE PROGRAM.

WE'RE RECOMMENDING THAT WE EXTEND THE PROGRAM FOR TWO MORE YEARS TO HELP US COLLECT MORE DATA, AND THEN WE WILL DO ANOTHER EVALUATION AND MAKE A RECOMMENDATION TO CITY COUNCIL.

WE WILL REEVALUATE THE MARKET AND THE INCENTIVES AT THAT TIME, MUCH LIKE WE'RE DOING TODAY, BUT THAT ALSO GETS US TO 2020, WHICH IS OUR GOAL TO GET TO 7500 HOUSING UNITS BY 2020 WITH A STRETCH GOAL OF 10,000.

THIS WILL ALSO HELP US ALIGN WITH OTHER CITY POLICIES AND PRIORITIES SUCH AS THE SA TOMORROW PLAN, THE MAYOR'S HOUSING TASK FORCE, AND ALLOW US TO FOCUS ON DENSITY AND AFFORDABILITY.

NOW, THE PROPOSED BOUNDARY, WE ARE RECOMMENDING THAT WE DECREASE THE BOUNDARY, SO RIGHT NOW THE DOWNTOWN AREA IS 5.6 SQUARE MILES.

SOMETHING WE HEARD IN OUR NEIGHBORHOOD MEETINGS AND THE COMMUNITY MEETINGS WAS THAT THERE WAS A LOT OF CONCERN FROM THE NEIGHBORHOODS THAT THE CCHIP WAS PROMOTING REDEVELOPMENT AND

[00:25:02]

ENCROACHING ON THEIR NEIGHBORHOOD.

SO WHAT WE'VE DONE IS WE REMOVED THE AREAS THAT ARE ZONED LOW TO MEDIUM RESIDENTIAL IN THAT AREA.

SO WE REMOVED THE NEIGHBORHOODS FROM THE ZONE, SO IT DECREASED FROM 5.4 SQUARE MILES TO 2.6 SQUARE MILES.

AND THAT WILL BE THE BOUNDARY THAT WE'RE PROPOSING FOR ANY NEW CCHIP PROJECTS MOVING FORWARD.

WE'VE ALSO CREATE AD TIERED SYSTEM THAT LOOKS AT THE MARKET RAISE SUPPLY, THE RENTAL RATE ATTAINMENT AND LAND PRICES TO HELP US DEVELOP THE LEVEL OF INCENTIVES REACHED HERE.

NOW, TO BE ELLEGIBLE FOR TIER 1, WE DO HAVE A DENSITY REQUIREMENT AND YOU MUST BE 50 UNITS PER ACRE, OR 18 UNITS PER ACRE FOR AN ADAPTIVE REUSE PROJECT.

THE FOR-SALE PRODUCT IS ELIGIBLE FOR UNITS THAT DO NOT EXCEED A SALES PRICE OF 350,000.

WE WANT TO HELP FACILITY FOR-SALE PRODUCT IN OUR DOWNTOWN, BUT WE DON'T WANT TO HELP INCENT THE LUXURY PRODUCT.

AND SO THIS ELIMINATES THE EXAMPLE WE HAD WITH THE ARTISTS RESIDENCES OR THE FLOODGATE.

WE'VE ALSO PUT A CAP ON THE LEVEL OF INCENTIVES A MULTIFAMILY HOUSING PROJECT COULD RECEIVE OF 350,000 PER UNIT TO HELP US NOT INCENT THAT LUXURY PRODUCT AGAIN.

SO IF YOU ARE A PROJECT AND YOUR TOTAL COST IS 350 PER UNIT, YOUR INCENTIVE WILL BE CAPPED AT THAT $350,000.

FOR TIER 2, THE DENSITY REQUIREMENT IS 33 UNITS PER ACRE FOR RENTAL AND 25 UNITS PER ACRE FOR SALE.

AND THEN THE ADAPTIVE REUSE OF 18 UNITS PER ACRE STILL APPLIES.

THE FOR SALE PRODUCT REQUIREMENT CANNOT BE ABOVE $300,000, AND THAT'S ADJUSTED FOR THE LAND PRICES, AND THEN THE MULTIFAMILY IS ELIGIBLE FOR A TAX REBATE, BUT THAT'S ALSO CAPPED AT 300 THOUSAND DOLLARS.

SO THE PROGRAM CHANGES FROM 2016 TO 2018 ARE AS FOLLOWS: YOU MUST STAY IN THE BOUNDARY; HOWEVER, WE'VE ADJUSTED THE BOUNDARY TO ONLY ALLOW FOR DEVELOPMENT IN AREAS THAT ARE ZONED APPROPRIATELY.

ALL PROJECTS ARE STILL SUBJECT TO DESIGN REVIEW.

THAT WAS A CHANGE WE MADE IN 2016.

PROJECTS REQUIRING REZONING FROM SINGLE FAMILY RESIDENTIAL ARE NOT ELLIJ ELIGIBLE.

THAT WAS SOMETHING THAT WE CHANGED IN 2016 AND THROUGH OUR NEIGHBORHOOD MEETINGS, WE HEARD A LOT OF SUPPORT TO CONTINUE THAT; HOWEVER, WE DO HAVE A CAVEAT ON THAT.

IF YOU'RE REZONED DURING THE SA TOMORROW REGIONAL CENTER PLANS FOR MIDTOWN OR DOWNTOWN OR LONE STARFROM SINGLE FAMILY TO A LIAR DENSITY, YOU WOULD -- TO A HIGHER DENSITY, YOU WOULD BE ELIGIBLE BECAUSE YOU WENT THROUGH A COMMUNITY PLANNING PROCESS.

AND THEN THE DENSITY REQUIREMENTS ARE WHAT I MENTIONED EARLIER.

SO WE HAVE MORE DENSITY IN THE DOWNTOWN AREA WHICH IS IN LINE WITH THE SA TOMORROW PLAN.

ADDITIONAL CHANGES WE'RE MAKING YOU ARE NOT ELIGIBLE FOR A SHORT-TERM PERMIT FOR A TYPE 2 DEVELOPMENT.

AGREEMENTS [INDISCERNIBLE] POSTED AS THEY ARE EXECUTED AND PROJECTS INCLUDING A HOTEL COMPONENT ARE NOT ELIGIBLE.

NOW, THE PROPOSED INCENTIVES, YOU WILL BE ELIGIBLE FOR CITY FEE WAIVERS REGARDLESS OF WHICH TIER YOU'RE IN.

THE SAWS FEE WAIVERS, THE MAXIMUM AMOUNT OF SAWS WILL GO TO PROJECTS WITHIN THE CENTRAL BUSINESS DISTRICT, AND THEN THE TAX REIMBURSEMENT GRANT FOR BOTH AREAS IS CAPPED AT 75%; HOWEVER, IF YOU'RE WITHIN TIER 1, IT'S A 15-YEAR REBATE, IN TIER 2, IT'S A 10-YEAR REBATE.

WE ARE NO LONGER GOING FORWARD OR RECOMMENDING A LOAN OR GRANT OR A MIXED USE FOR GIVEABLE LOAN, HOWEVER WE ARE RECOMMENDING AN INFRASTRUCTURE GRANT FOR PROJECTS THAT HAVE AFFORDABILITY IN THE DOWNTOWN CORE.

SO FOR A TIER 1 PROJECT YOU WOULD BE ELIGIBLE FOR A WAIVER OF CITY FEES.

HOWEVER IN TIER 2, IN ORDER FOR YOU TO GET THE WAIVER FOR CITY FEES, YOU MUST EITHER HAVE 20% OF YOUR PRODUCT AT AN AFFORDABLE RATE, OF WHICH 10% IS AT 60 AND 10% IS AT 80, OR YOU MUST BE ABOVE FIVE STORIES WHICH CHANGES THE CONSTRUCTION MATERIALS TO STEELE AND CONCRETE.

FOR TIER 1, YOU HAVE 100% WAIVER OF YOUR SAWS FEES, BUT IT'S CAPPED AT 1 MILLION.

AND THEN FOR TIER 2, YOU'RE CAPPED AT $500,000, BUT YOU STILL HAVE TO BE 20% AFFORDABLE OR ABOVE FIVE STORIES.

SO WE ARE NO LONGER INCENTING FOUR-STORY STICK BUILT MARKET RATE PROJECTS.

WE HAVE ENOUGH OF THOSE IN THE TIER 2 AREA, SO WE'RE TRYING TO INCENT DENSITY OR AFFORDABILITY IN TIER 2.

THE TAX REIMBURSEMENT GRANT FOR

[00:30:01]

TIER 1, IT'S CAPPED AT 75%, AND IT'S FOR 15 YEARS.

FOR TIER 2, IT'S 10 YEARS AT 75%, AND THEN THE INFRASTRUCTURE GRANT IS ONLY AVAILABLE FOR TIER 1 PROVIDED YOU INCORPORATE AN AFFORDABLE COMPONENT IN YOUR PROJECT.

NOW, I WANT TO STRESS THAT THIS IS FOR THE AS OF RIGHT CENTER CITY HOUSING INCENTIVE POLICY.

IF THERE ARE PROJECTS THAT REQUIRE ADDITIONAL SUBSIDIES AND THE CCHIP CANNOT MAKE THAT, AND AFTER STAFF HAS REVIEWED, WE MAY TAKE A RECOMMENDATION TO COUNCIL FOR ADDITIONAL SUBSIDY, BUT THAT WOULD REQUIRE A CITY COUNCIL APPROVAL.

THIS ONLY APPLIES TO THE AS OF RIGHT CENTER CITY HOUSING INCENTIVE POLICY.

NOW, THIS DOES PROVIDE FOR NEIGHBORHOOD PRESERVATION IN OUR DOWNTOWN NEIGHBORHOODS.

WE'VE REDUCED THE PROGRAM BOUNDARIES, WE'VE ALIGNED IT WITH THE SA TOMORROW LAND USE PLAN, PROJECTS REQUIRING REZONING FROM SINGLE FAMILY RESIDENTIAL ARE NOT ELIGIBLE AND ALL PROJECTS MUST GO THROUGH THE DESIGN REVIEW PROCESS AND PROJECTS ARE UNELIGIBLE FOR A TYPE 2 PERMIT.

WE DO HAVE AN AFFORDABILITY COMPONENT, THIS APPLIES TO TIER 1.

IF YOU ARE TO RECEIVE AN INFRASTRUCTURE GRANT, TIER 2, YOU MUST HAVE 10% OF YOUR UNITS AT 80% OR 10% OF YOUR UNITS AT 60% TO BE ABLE TO MEET THAT TIER 2 REQUIREMENT OF AFFORD NLT, -- AFFORDABILITY, YOU CAN BE MARKET RATE BUT YOU MUST GO ABOVE FIVE STORIES.

HOWEVER ALL CCHIP PROJECTS WILL CONTRIBUTE 25% OF THEIR TAX INCREMENT INTO AN AFFORDABLE HOUSING FUND THAT WILL HELP SUPPORT PROJECTS OF 60% OF THE AMI OR BELOW.

NOW, I DID A SLIDE HERE THAT REALLY SHOWS WHY AFFORDABLE HOUSING CAN BE SO CHALLENGING IN OUR DOWNTOWN AREA.

IT'S CHALLENGING CITY WIDE, BUT THIS SHOWS YOU THE ORDER OF MAGNITUDE OF SUBSIDY WE WOULD HAVE TO INSERT IF WE WERE TO MAKE AFFORDABLE HOUSING A REQUIREMENT IN OUR DOWNTOWN AREA.

SO FOR A CENTRAL BUSINESS DISTRICT PROPERTY WITH 275 UNITS TO BE ABLE TO GET 10% AT THE 80% AMI AND 10% OF THE 60% AMI WE WOULD NEED 4 MILLION TO $10 MILLION IN SUBSIDY TO BE ABLE TO GET A RETURN FOR A DEVELOPER.

AND TYPICALLY, THEY WANT TO GET A 7% RETURN.

IF YOU INCREASE THAT TO 20% AT 60%, THAT GAP CAN GO FROM 5.2 TO $13 MILLION.

BECAUSE THIS -- REQUIRING THAT AFFORDABILITY DECREASES THEIR NET OPERATING INCOME WHICH IMPACTS THE RETURN ON COST.

TIER 2, THE SAME.

WE'RE SEEING IN TIER 1 PROJECTS, DEPENDING ON THE LOCATION -- I'M SORRY, FOR TIER 2 PROJECTS, IT CAN BE ANYWHERE FROM 0 TO 10 MILLION.

FOR 10% AT 80 AND 10% AT 60, AND 1.1 TO 15 MILLION FOR 20% OF YOUR PRODUCT AT 60% AMI.

THIS IS BECAUSE THE LAND VALUES ARE SO MUCH HIGHER IN THE DOWNTOWN AREA, THE RENTAL RATES, WE DO NOT SUPPORT THE LAND VALUES, SO FOR A MARKET REPROJECT YOU'RE REALLY GETTING ABOUT $2 PER FOOT ON AVERAGE AND YOU HAVE OTHER COSTS THAT PLAY INTO MAKING THE PROJECTS MORE EXPENSIVE, THAT I MENTIONED EARLIER.

SUCH AS THE PARCEL SHAPES, THE OTHER REGULATIONS T NEED TO BUILD A STRUCTURED PARKING GARAGE.

AND SO IT IS VERY HARD FOR A DEVELOPER TO DO A PROJECT WITHOUT A SUBSIDY JUST IN GENERAL, AND THEN IT'S MORE CHALLENGING TO DO ONE IF YOU MAKE AFFORDABILITY A REQUIREMENT NOW, I MENTIONED THAT WE WANT TO CREATE AN AFFORDABLE HOUSING FUND THAT WOULD BE USING THOSE PROJECTS THAT USE THE CENTER CITY HOUSING INCENTIVE POLICY INCREMENT.

SO WE ANTICIPATE THAT OVER THE NEXT TWO TO THREE YEARS WE COULD GET 3200 HOUSING UNITS THROUGH THE CCHIP.

IF THOSE WERE TO COME TO FRUITION, THEY WOULD PRODUCE ABOUT SIX $150,000 ONCE THEY'RE ALL -- $650,000 WHICH WOULD BE SELF-SUPPORTED IN ABOUT TWO OR THREE YEARS.

FOR THE MAYOR'S HOUSING TASK FORCE REPORT, THEY SAID THAT $37,500 WAS THE GAP NEEDED TO SUPPORT A HOUSING PROJECT OUTSIDE OF THE DOWNTOWN AREA AT 60% AMI OR BELOW, SO THAT'S ABOUT 20 UNITS.

IF YOU ARE TO PUT THOSE UNITS IN THE DOWNTOWN AREA, IT COULD PROBABLY SUPPORT EIGHT TO 10

[00:35:01]

HOUSING UNITS IN DOWNTOWN.

AND SO WE HAVE MADE A REQUIREMENT THAT THE AFFORDABLE HOUSING FUND COULD BE USED CITYWIDE.

IT DOES HAVEN'T TO BE LIMITED TO THE DOWNTOWN AREA, AND THIS FUND WILL BE MANAGED BY THE HOUSING AND NEIGHBORHOOD SERVICES DEPARTMENT.

NOW, THE CENTER CITY HOUSING INCENTIVE POLICY AS THE TXP REPORT MENTIONED, IT CAN BE A GREAT TOOL TO HELP LEVERAGE AFFORDABLE HOUSING OPPORTUNITIES, BUT A LOAN, IT DOES NOT SERVE AS A TOOL TO CREATE AFFORDABLE HOUSING UNITS.

THERE ARE OTHER TOOLS THAT THE CITY AND THE STATE USE AND HAVE ACCESS TO THAT WE ARE RECOMMENDING BE USED IN CONJUNCTION WITH THE CENTER CITY HOUSING INCENTIVE POLICY.

THE MOST VALUABLE TOOL IS THE LOW INCOME HOUSING TAX CREDIT PROGRAM, THE 4% OR 9%.

THE 9% IS THE COMPETITIVE PROGRAM, AND WE'RE RECOMMENDING THAT ANY PROJECT GOING THROUGH THE LOW INCOME HOUSING TAX CREDIT PROGRAM BE ELIGIBLE FOR THE FEE WAIVERS AND INCENTIVES IDENTIFIED IN THIS POLICY PROVIDED [INDISCERNIBLE].

THE OTHER TOOL WE E HAVE IS THE SAN ANTONIO PUBLIC FACILITIES CORPORATION.

THAT IS A BORD OF FIVE COUNCILMEMBERS.

THE PUBLIC FACILITIES CORPORATION PROVIDES A COMPLETE TAX EXEMPTION PROVIDED THAT 50% OF THE UNITS ARE PRICED AT 80% -- ARE MADE AVAILABLE TO INDIVIDUALS MAKING 80% AMI OR BELOW. WE'RE RECOMMENDING THAT THE CCHIP INCENTIVES BE ELIGIBLE AND MADE AVAILABLE TO PFC PROJECTS PROVIDED THE PFC BOARD RECOMMEND THAT THE PROJECT STILL NEEDS THESE INCENTIVES.

AND THEN THE OTHER INCENTIVE TOOL THAT THE CITY HAS IS PUBLIC ASSETS.

AND SO THE CITY OF SAN ANTONIO DOES CONTROL LAND.

THIS IS A RECOMMENDATION FOR US TO DISPOSE OF LAND AND USE THAT TO HELP US LEVERAGE MORE AFFORDABLE HOUSING.

ONE OF THE PROJECTS I WANTED TO HIEJT, I MENTION -- HIGHLIGHT, I MENTIONED EARLIER IS THE MUSEUM RICH LOFTS, THIS SAN ANTONIO PROJECT BEING DONE BY ALAMO GROUP.

IT'S A $17.5 MILLION HOUSING PROJECT.

IT HAS 94 APARTMENTS, IT HAS A LOT OF AFFORDABILITY OF WHICH NINE UNITS WILL BE AVAILABLE TO INDIVIDUALS AT 30% AMI LEVEL OR BELOW, 35 UNITS ARE AT THE 50% AMI OR BELOW, 42 UNITS ARE AT THE 60% AMI OR BELOW, AND THEN THEY HAVE EIGHT UNITS AT THE MARKET RATE LEVEL.

NOW, THIS PROJECT IS VERY CHALLENGING, AS I MENTIONED EARLIER.

IT'S ON .6 ACRES.

IT'S A TRIANGLE SLIVER ON THE CORNER OF JONES AND ST. MARY'S AND FOR THIS PROJECT TO WORK THE CITY HAD TO LEVERAGE AND LAYER ON SEVERAL INCENTIVES.

SO THIS PROJECT IS RECEIVING $160,000 PER AFFORDABLE UNIT IN THE SUBSIDY.

7700 OF THAT IS COMING FROM THE CCHIP.

THE INNER CITY INCENTIVE FUND WILL PROVIDE 6500 PER UNIT.

THE MIDTOWN TIRZ IS PROVIDING 33,000 PER UNIT, BUT THE 9% HOUSING TAX CREDIT, WHICH IS A COMPETITIVE TAX CREDIT AVAILABLE TO THE STATE IS PROVIDING $111,000 PER UNIT TO THAT PROJECT.

THAT IS NECESSARY TO BE ABLE TO GET THE LEVEL OF AFFORDABILITY THAT THEY HAVE EMBEDDED IN THIS PROJECT.

I MENTIONED OTHER TOOLS WE COULD USE COULD INCLUDE DISPOSING OF CITY-OWNED PROPERTY.

THE CITY OF SAN ANTONIO HAS THE CHERRY STREET POT THAT'S CURRENTLY OUR SIGN SHOP THAT WE'RE RELOCATING WITHIN THE NEXT COUPLE OF MONTHS TO ANOTHER SERVICE CENTER.

THIS PROPERTY IS WITHIN ONE OF THE NEIGHBORHOOD IMPROVEMENT BOND AREAS THAT WERE APPROVED BY THE VOTERS IN 2017 AND IT'S ALSO WITHIN THE INNER CITY TIRZ.

THE CITY OF SAN ANTONIO COULD ISSUE AN RFP REQUESTING THAT DEVELOPERS SUBMIT PROPOSALS FOR A HOUSING PROJECT ON THE SITE AND WE COULD PRESCRIBE THE KIND OF AFFORDABILITY WE NEED.

WE KNOW IN THE MAYOR'S HOUSING TASK FORCE IS THE GREATEST RENTAL IS AT 60% AMI OR BELOW.

SO WE COULD PRESCRIBE THE MAJORITY OF THOSE UNITS BE AT 60% AMI OR BELOW.

AND THE WAY WE WOULD DO THAT IS WE WOULD LAYER THE CCHIP AS WELL AS THE LAND VALUE IN THAT PROJECT TO MAKE IT HAPPEN.

THIS IS ON THE NEAR EAST SIDE, AND IT'S WITHIN THE INNER CITY TIRZ.

THE NEXT PROPERTY IS THE NUEVA MARINA.

THIS IS A PROJECT DIRECTLY ACROSS FROM BEXAR COUNTY COURTHOUSE.

THE CITY OF SAN ANTONIO'S BARGES THAT WE USE FOR THE RIVER ARE STORED HERE, AND WE KNOW THAT WE CAN DEMO THE OFFICE BUILDING ON TOP AND GO UP FOUR STORIES ON TOP OF THE MARINA.

THIS WOULD BE A A GREAT OPPORTUNITY TO DEVELOP A PROJECT SIMILAR TO THE MUSEUM RICH

[00:40:02]

LOFTS, WHICH IS ON THE SAME SIZE, THIS IS .75 ACRES, A LITTLE BIT LARGER, BUT TO INSERT AFFORDABILITY IN THE CENTRAL BUSINESS DISTRICT.

NOW, I DO WANT TO MENTION THAT THE CITY OF SAN ANTONIO'S HOUSING INCENTIVE POLICY WILL LEVERAGE OPPORTUNITIES IN DOWNTOWN.

THIS IS A SLIDE THAT WILL SHOW YOU ALL OF THE HOUSING PROJECTS THAT HAVE NOT COME ONLINE BUT HAVE EITHER STARTED CONSTRUCTION OR WILL BE STARTING CONSTRUCTION IN THE NEXT YEAR OR SO, AND THIS ALSO INCLUDES THE NUEVA STREET AND THE CHERRY STREET PROPERTIES, ASSUMING CERTAIN HOUSING UNITS BASED ON THE DENSITY WE COULD GET ON THAT SITE.

BUT WE KNOW THAT THE CCHIP, WHEN PARTNERED WITH THESE OTHER INCENTIVES, THEY'LL PRODUCE ABOUT 3,000 HOUSING UNITS OF WHICH MOST OF THOSE WILL BE AT THE 80% AMI LEVEL OR BELOW.

NOW, IF WE LOOK AT THAT AND COMPARE IT TO WHAT THE MAYOR'S HOUSING TASK FORCE REPORT RECOMMENDED, IT RECOMMENDED THAT OVER 10 YEARS WE PROVIDE 9500 NEW HOUSING UNITS IN THE RENTAL -- IN RENTAL PRODUCT THAT MEET THE 30 TO 60% AMI LEVEL.

BASED ON THE SLIDE I JUST SHOWED YOU, WE'D BE ABLE TO PROVIDE 14% OF THAT GOAL.

SO THE CITY OF SAN ANTONIO IS ABOUT 460 SQUARE MILES, DOWNTOWN IS 2.6 SQUARE MILES, AND SO WE THINK 14% -- 14% OF THE DOWNTOWN AREA CAN HELP SUPPORT THAT GOAL.

THE 60 TO 80% WOULD BE ABLE TO PROVIDE 83% OF THAT GOAL, AND FOR THE LESS THAN 30, THAT'S WHERE WE NEED TO WORK, AND THAT'S THE 30% OR BELOW AMI LEVEL.

AND SO THE CCHIP, WHEN PARTNERED WITH THE PFCS AND THE LOW INCOME HOUSING TAX CREDITS, THEY DO HELP LEVERAGE AFFORDABILITY IN THE DOWNTOWN AREA.

NOW, BEFORE I CONCLUDE, I WANTED TO MENTION THAT EARLY ON IN OUR DISCUSSIONS WITH THE NONPROFITS AND THE STAKEHOLDERS, THEY, PRESSED A CONCERN ABOUT THE CCHIP EATING UP A LOT OF THE INCENTIVES FOR THE FEE WAIVER PROGRAM.

AND SO WHAT WE'VE DONE IS MENTIONED EARLIER IS CREATED ALLOCATED BUCKETS OF FUNDING TO WHERE THOSE WILL ALWAYS BE PROTECTED AND THERE WILL ALWAYS BE FEE WAIVERS AVAILABLE FOR CERTAIN CATEGORIES OF PROJECT.

AND SO WHAT WOULD HAPPEN, LAST YEAR IS YOU I'D HAVE A CCHIP PROJECT THAT COULD POTENTIALLY EAT UP ALL THE SAWS FEE WAIVERS, AND NOW WE'RE SAYING THAT NO MORE THAN $1.5 MILLION OF THE OVERALL ALLOCATION CAN BE USED FOR A PROJECT THAT'S RECEIVING INCENTIVES FROM THE CCHIP.

THE REST OF THATTAL LOOCATION HAS TO -- THAT ALLOCATION HAS TO BE PROVIDED OR PRESERVED FOR ECONOMIC DEVELOPMENT AND AFFORDABLE HOUSING OR REHAB HOUSING.

THIS IS IN LINE WITH THE SA TOMORROW PLAN.

THE INCENTIVES ARE ALIGNED WITH THE FUTURE LAND USE.

IT DOES FOCUS ON DENSITY.

IT PROVIDES FUTURE OPPORTUNITIES WITH THE AFFORDABLE HOUSING FUND CREATION.

WE'VE ELIMINATED THE ABILITY TO DEVELOP ON THE RECHARGE ZONE, AND THE ECONOMIC DEVELOPMENT INCENTIVES ARE ALIGNED WITH OUR PLANNING EFFORTS.

IT'S ALSO ALIGNED WITH THE MAYOR'S HOUSING POLICY TASK FORCE.

IT PROVIDES A DEDICATED REVENUE SOURCE OF FUND TO INCENT AFFORDABLE HOUSING.

IT UTILIZES THE HUD AREA MEDIAN INCOME GUIDELINES, IT PRIORITIZES CITY INCENTIVES FOR RENTAL AFFORDABILITY AND FOR SALE AFFORDABILITY, AND THE RENTS CHARGED FOR AFFORDABLE UNITS ARE RESTRICTED TO APPROXIMATELY 30% OF A HOUSEHOLD'S INCOME.

AND THIS WILL INCREASE THE PRODUCTION OF AFFORDABLE HOUSING IN THE CITY OF SAN ANTONIO.

WE ER RECOMMENDING THAT THIS MOVE FORWARD TOO CITY COUNCIL ON DECEMBER 6 AND THAT DOES CONCLUDE MY PRESENTATION AND I'M AVAILABLE TO ANSWER ANY QUESTIONS.

>> MAYOR NIRENBERG: GREAT.

THANK YOU VERY MUCH, LORI, FOR THE PRESENTATION AND THE HARD WORK ON THIS.

AS EVERYONE IS PRETTY WELL AWARE, THIS WAS SCHEDULED TO GO TO COUNCIL I THINK A FEW WEEKS AGO BUT WE PULLED IT BECAUSE THERE WERE A NUMBER OF QUESTIONS THAT HAVE BEEN RISING UP, SO I DO HAVE SOME QUESTIONS AS WELL.

LORI, DON'T GO ANYWHERE, PLEASE.

THE WORK OF THE MAYOR USE HOUSING POLICY TASK FORCE HAS KIND OF RECALIBRATED OUR THINKING ON HOUSING IN A LOT OF WAYS WITH REGARD TO THE POLICIES, AND I THINK THAT EVERYONE UNDERSTOOD THAT WE NEEDED TO THROTTLE THE CCHIP FOR SOME TIME, SO IT'S GOOD THAT WE'RE HAVING THIS DISCUSSION NOW.

BUT THE REASON FOR PULLING IT DOWN A FEW WEEKS AGO IS IT FEL E QUESTIONS THAT WERE BEING RAISED IN THE FINAL ASSESSMENT THAN WE HAD ANTICIPATED.

AND I'M WONDERING NOW BASED ON THAT, WHAT KIND OF INPUT WENT

[00:45:01]

INTO THIS, WHAT KIND OF PUBLIC PROCESS IN TERMS OF THE STAKEHOLDERS THAT WERE INVOLVED, AND WHAT DID THAT INPUT AMOUNT TO IN TERMS OF CHANGES THAT WERE MADE TO THE POLICY?

>> HOUSTON: SO WE DID THREE STUDIES, WE LOOKED AT A TAX ANALYSIS, WE DID THE ASSESSMENT THAT WAS DONE BY A THIRD PARTY, TXP, AND WHICH ALSO HAD STEVE NIVIN DO THE ECONOMICIMPACT STUDY.

WE, MEANING THE CITY CENTER DEVELOPMENT OPERATIONS DEPARTMENT PARTICIPATED IN THE SA TOMORROW'S REGIONAL CENTER'S PLANS FOR MIDTOWN, FOR THE DOWNTOWN AREA AND FOR LONE STAR, AND THEN WE ALSO WERE IN ATTENDANCE AT THE MAYOR'S HOUSING TASK FORCE REPORT PUBLIC MEETINGS.

WE LISTENED AT THOSE MEETINGS, BUT THEN IN ADDITION TO THAT, WE HAD SEVERAL STAKEHOLDER MEETING WITH FOR PROFIT PROVIDERS AND THE NONPROFIT PROVIDERS THROUGHOUT THE PAST SIX MONTHS.

WE'VE ALSO HAD INDIVIDUAL STAKEHOLDER MEETINGS WITH EACH OF THE NONPROFIT PROVIDERS TO MAKE SURE THAT WE WERE DEFINING AFFORDABLE HOUSING AND THAT THIS POLICY COULD WORK FOR THEM.

AND THEN WE MET WITH ALL THE TIER 1 NEIGHBORHOOD ASSOCIATIONS.

WE MET WITH THE PRESIDENTS OF EACH OF THOSE GROUPS AND THEN WHEN OUT TO THOSE NEIGHBORHOOD ASSOCIATION MEETINGS AND ALSO PRESENTED.

SO WHAT WE HEARD IN THAT PUBLIC INPUT WAS PEOPLE WERE CONCERNED THAT BOTH THE ICRIP AND THE CCHIP PROMOTED DEVELOPMENT IN THEIR NEIGHBORHOODS.

THEY DID NOT LIKE TO SEE THEIR SINGLE FAMILY HOUSING NEIGHBORHOODS REDEVELOPED INTO MULTIFAMILY.

SOME FELT THAT THE ICRIP PROVIDED OPPORTUNITIES FOR A DEVELOPER TO GO IN, PURCHASE TWO OR THREE SINGLE FAMILY HOMES, AND THEN REDEVELOP THOSE INTO MULTIFAMILIES OR BUSINESSES.

WHAT WE HEARD PEOPLE WANT MORE PROTECTION OF THEIR NEIGHBORHOODS.

AND SO THAT'S WHY IN THE ICRIP, WE'RE GOING TO AFFORDABLE HOUSING, HISTORIC PRESERVATION, THE REHAB AND THE LEGACY BUSINESS AND SMALL BUSINESS.

FOR THE CCHIP, WE HEARD CONCERNS FROM THE NEIGHBORHOODS SAME THINGS THAT PROVIDING AN OPPORTUNITY FOR A DEVELOPER TO COME IN KNOCK DOWN HOMES AND BUILD A MULTIFAMILY HOUSING PROJECT AND THE CITY INCENTED THAT.

THAT STILL CAN HAPPEN BUT THE CCHIP WILL NOT HELP SUBSIDIZE THAT PROJECT.

ANOTHER THING WE LEARNED, WE LEARNED QUICKLY ABOUT THE SHORT-TERM RENTAL PROGRAM.

WE HEARD A LOT OF DISCUSSION ABOUT NEIGHBORS PROVIDEING SHORT-TERM RENTALS IN THEIR HOMES THAT THEIR OWNER SLACK OCCUPIED AND HOW THAT HELPED THEM MAKE ENDS MEET.

THAT WAS SOMETHING WE LEARNED AS WELL.

WE ALSO LEARNED QUITE A BIT ABOUT THE NEED FOR AFFORDABLE HOUSING AND WE'VE BEEN AIBILITY TO ACCOMMODATE THAT THROUGH THE AFFORDABLE HOUSING FUND AS WELL AS BEING ABLE TO PROVIDE CERTAIN REQUIREMENTS FOR CERTAIN PROJECT TYPES.

WE ALSO HEARD THE NEED TO CONTINUE THE DESIGN REVIEW.

THERE WERE SOME NEIGHBORHOODS DIDN'T EVEN KNOW IT EXISTED, WE HAD AN OPPORTUNITY TO REALLY DO MORE OUTREACH TO MAKE SURE THAT THE NEIGHBORHOODS KNEW THAT EVERY CCHIP PROJECT HAD TO GO THROUGH A DESIGN REVIEW, AND THEN WE WERE ABLE TO WORK CLOSELY WITH THE AFFORDABLE HOUSING PROVIDERS TO MAKE SURE THAT WE WEREN'T PROHIBITING THEM FROM DOING THEIR JOB.

SO, FOR EXAMPLE, HABITAT FOR HUMANITY, INITIALLY WE WERE PROPOSING TO CAP THE INCENTIVE TO 100% AMI FOR THE FOR-SALE PRODUCT.

WELL, HABITAT KNOWS THERE'S A NEED AND THEY'RE YES ATING A NEW -- CREATING A NEW PRODUCT THAT MEETS 120% AMI.

SO WE WORKED CLOSE WHICH WITH THEM AND THAT DID REFLECT THE RECOMMENDATIONS IN THE MAYOR'S HOUSING TASK FORCE REPORT.

WE DID LISTEN AND WE ALSO CLARIFIED.

I THINK WHEN PEOPLE HEARD US SAY WE'RE LIMITING BOUNDARIES FROM THE I KRIP, I THINK THEY THOUGHT WE WERE EXPANDING THE WHOLE POLICY CITYWIDE.

IT'S NO LONGER PLACE-BASED BUT IT'S ON NEEDS-BASED.

WE KNOW WHAT WE NEED IN THE CITY OF SAN ANTONIO AND WE'RE PRIORITIZING THAT FOR FEE WAIVERS.

IT DOES NOT MEAN YOU CANNOT GET AN AS -- A FEE WAIVER, BUT YOU CANNOT GET IT THROUGH THE AS OF RIGHT PROGRAM.

>> MAYOR NIRENBERG: THAT'S ALL GREAT INFORMATION, I APPRECIATE THAT.

WHAT IT TELLS ME IS THAT NEARLY EVERYONE IN THIS COMMUNITY IS A STAKEHOLDER IN THIS PROCESS.

SO IT'S GOING TO BE REALLY DIFFICULT TO GET TO THE IDEAL POLICY WITH REGARD TO DEVELOPMENT INCENTIVES.

SO LET ME TAKE A STEP BACK FOR A MINUTE.

MY MAIN TAKEAWAY FROM THE HOUSING POLICY WORK WAS THE FACT THAT WE DO HAVE AN AFFORDABILITY ISSUE IN THE CITY, SOME OF IT COMES FROM A SUPPLY/DEMAND IMBALANCE, AND WITH REGARD TO HOW WE ADDRESS THAT SUPPLY/DEMAND IMBALANCE, WE NEED MORE PRODUCTION.

WE CAN'T HAVE MORE PRODUCTION IF HOUSING AND LAND COSTS CONTINUE TO RISE OUT OF CONTROL, OR CONTINUE TO RISE INORDINATELY, BUT WE ALSO HAVE SOME WORK TO DO

[00:50:03]

TO MAKE SURE THAT WHEN WE USE INCENTIVES, NOT ONLY ARE WE ALLOWING FOR PROJECTS TO ACTUALLY PENCIL OUT IN ALL CATEGORIES, BUT WE'RE ALSO SHOWING TO THOSE OTHER STAKEHOLDERS THAT AREN'T NECESSARILY BUYING THE HOMES BUT ARE CONTRIBUTING THROUGH THEIR TAX DOLLARS THAT THERE'S A PUBLIC BENEFIT.

THAT'S WHERE THE -- THAT'S WHERE IT'S NOT COMPUTING RIGHT NOW, IS THAT WHEN PEOPLE SEE THE ARTISTS RESIDENCE, FOR INSTANCE, AND THEY'RE SEEING THAT THIS IS A TAXPAYER FUNDED PROJECT, PARTIALLY FUNDED PROJECT, HOW DOES THAT BENEFIT THEM? IT'S ORIGINAL RAISING THE MARKET -- ONLY RAISING THE MARKET RAISE BECAUSE WE'RE NOT REALLY ADDRESSING THE SUPPLY/DEMAND IMBALANCE HOLISTICALLY.

I'M JUST TELLING YOU I UNDERSTAND HOW COMPLICATED THIS IS.

OUR BEST EFFORT, I THINK, WITH FINDING THE ANSWER IS TO, NUMBER ONE, NOT LONG OURSELVES INTO A A LONG-TERM POLICY THAT WE CAN'T GO BACK AND TWEAK.

I BELIEVE THAT WE HAVE TO BE CAREFUL ABOUT THE TERM, SO NUMBER ONE, THE INITIAL HOUSING FIRST STRATEGY FOR DOWNTOWN AND PART OF THE SA TOMORROW -- OR SA 2020 GOALS WERE TO HAVE 7500 HOUSING UNITS IN THE DOWNTOWN AREA BUILT.

WHERE ARE WE NOW AND DO YOU EXPECT WITHIN THE TERM OF THIS NEW POLICY THAT WE WILL ACHIEVE OR EXCEED THAT?

>> HOUSTON: YES.

AND SO CURRENTLY WE'RE AT 6800 HOUSING UNITS THAT ARE EITHER ONLINE OR UNDER CONSTRUCTION IN THE PLANNING STAGES.

NOW, WE DO EXPECT TO BE ABLE TO ACHIEVE 7500 BY 2020; HOWEVER, WE HAD A STRETCH GOAL OF 10,000.

AND THE REASON THAT STRETCH GOAL WAS IN PLACE WAS THAT WE HAVE 14,000 HOTEL UNITS IN THE DOWNTOWN AREA, AND WITH WANT -- WE WANT TO MAKE SURE THAT WE'RE BRINGING IN BALANCE, NOT JUST A HOTEL MARKET, BUT WE HAVE A BALANCE OF HOTEL AND RESIDENTIAL.

AND SO THE STRETCH GOAL OF 10,000 WILL GET US TO 14,000 RESIDENTIAL UNITS IN THE DOWNTOWN AREA.

>> MAYOR NIRENBERG: OKAY.

GIVEN THAT THERE'S ALSO A CHALLENGE OF PERCEPTION AND THE FACT THAT WE ARE SUBSIDIZING HOMES THAT THE AVERAGE SAN ANTONIAN CAN'T AFFORD, I THINK WE NEED TO BE CAREFUL ABOUT THE TERM AND COMING BACK TO THIS IN A YEAR AS OPPOSED TO TWO YEARS.

THAT WOULD BE MY RECOMMENDATION.

BUT ALSO ALIGNMENT OF HOW WE'RE DEFINING AFFORDABLE HOMES.

THAT TO ME IS THE ONE I'VE GOTTEN THE MOST COMNLTS ABOUT.

WHY ARE WE DEFINING AFFORDABILITY AT 80% AMI RATHER THAN THE 60% AMI.

>> HOUSTON: THE CHALLENGE WE HAVE WE WANT TO CONTINUE ECONOMIC DEVELOPMENT FOR THE CITY.

WE NEED MARKET RATE HOUSING IN OUR DOWNTOWN, AND WE WANT PROJECTS TO PENCIL.

WE DO NOTE HAVE ENOUGH RE -- NOT HAVE ENOUGH RESOURCES TO HELP SUBSIDIZE THE 60% AMI, AND SO IN THAT SLIDE I SHOWED THAT IF WE WERE TO REQUIRE A DOWNTOWN HOUSING PROJECT TO HAVE 60% AMI, THE GAP COULD BE AS MUCH AS 13 MILLION.

WE WANT TO CONTINUE AFFORDABLE HOUSING AND THEN LEVERAGE THOSE DOLLARS, SO THAT 25% INCREMENT TO HELP US BUILD AFFORDABLE HOUSING OUTSIDE THE CITY.

WE SAW THAT LAST WEEK WITH THE BROADWAY JONES PROJECT.

THAT PROJECT IS 50% AT 80% AMI, IT'S 200 UNITS.

WHEN WE WORKED WORKED WITH THE DEVELOPER, WE ASKED THEM TO GIVE US A NUMBER OF WHAT IT WOULD TAKE TO GET 10% OF THOSE UNITS AT 60%? AND THEY CAME BACK WITH TWO AND A HALF MILLION DOLLARS TO MAKE THAT WORK.

AND WE LOOKED AT THOSE INSEASONTIVES, AND WE LOOKED -- INCENTIVES AND WE LOOKED AT THE PRO FORMAS AND WE'VE CONFIRMED THAT IS ACCURATE.

AND SO, YES, WE CAN DO IT.

BUT WE NEED MORE RESOURCE TO MAKE THAT HAPPEN; HOWEVER, JUST BECAUSE WE HAVE MORE RESOURCE DOESN'T MEAN THAT THERE WILL BE DEVELOPER WHOSE WILL ALWAYS DO IT.

AND SO THERE ARE SEVERAL MARKET RATE HOUSING DEVELOPERS WHO WON'T DEVELOP AFFORDABLE HOUSING AS WELL.

AND SO WE WANT TO CONTINUE THAT DEVELOPMENT OPPORTUNITY IN OUR DOWNTOWN, CONTINUE TO HAVE MORE USAAS AND OTHER COMPANIES TO COME DOWNTOWN WITHOUT STOPPING DEVELOPMENT AND ONLY FOCUSING JUST ON THAT AFFORDABILITY.

>> MAYOR NIRENBERG: SINCE WE PLACED THE MORATORIUM ON CCHIP, HAVE THERE BEEN ANY PROJECTS, HOUSING PROJECTS THAT HAVE BROKEN GROUND?

>> HOUSTON: NO.

>> MAYOR NIRENBERG: NONE? ZERO?

>> HOUSTON: WE HAVE A LOT OF PROJECTS IN THE PIPELINE THAT HAVE TALKED TO US ABOUT NEEDS AND THEY'RE WAITING FOR THE POLICY TO MOVE FORWARD.

WE ALSO KNOW THERE ARE SEVERAL PROJECTS WHERE THE CCHIP THAT WE'RE PROPOSING ISN'T GOING TO WORK.

WE'D HAVE TO COME BACK TO COUNCIL FOR A SEPARATE TYPE OF INCENTIVE AGREEMENT.

>> MAYOR NIRENBERG: OKAY.

AND WHEN YOU MENTION THE GAP FINANCING, WE HAVE THIS -- THE AFFORDABLE HOUSING FUND, WHICH CURRENTLY IS ACCUMULATING 25% OF THE INCREMENT THAT'S CREATED BY THE NEW DEVELOPMENTS?

>> HOUSTON: YES.

>> MAYOR NIRENBERG: OKAY.

HOW CAN WE CHANGE THAT? OR, I GUESS, WHAT WOULD BE THE IMPACT OF THAT IF WE WERE TO CHANGE THE RATIO?

[00:55:01]

I MEAN, FOR INSTANCE, IF WE'RE INCENTING A HOUSING DEVELOPMENT FOR THE PURPOSE OF SPURRING THE MARKET IN A PLACE THAT IT NEEDS IT, WE KNOW WE HAVE AN AFFORDABILITY ISSUE, WHY CAN'T THAT INCREMENT GO TOWARDS ADDRESSING GAP FINANCING IN FUTURE AFFORDABLE PROJECTS?

>> HOUSTON: THAT REBATE IS NECESSARY TO OFFSET SOME OF THEIR EXPENSES, AND IT'S VERY IMPORTANT FOR THOSE FIRST COUPLE YEARS.

AND SO THE 75% REBATE, WHEN WE LOOKED AT PROJECTS, IT'S STILL IMPORTANT TO MAKE SOME OF THOSE PROJECTS PENCIL.

AND I THINK DAVID ADLEMAN, I'D LIKE TO ASK HIM TO COME UP AND TALK ABOUT THE IMPORTANCE OF A PROJECT HE'S WORKING ON AND HOW IT IMPACTS HIS PRO FORMA, IF YOU DON'T MIND.

>> THAT'S ON THE SPOT.

[LAUGHTER]

>> TO FOCUS ON YOUR QUESTION, THOUGH, MAYOR, I THINK YOU WERE ASKING SPECIFICALLY ABOUT THE 25% OF TAX THAT WOULDN'T BE REBATED TO BE USED TOWARDS AFFORDABILITY.

WAS THAT YOUR QUESTION?

>> MAYOR NIRENBERG: WELL, WE HAVE 25% CURRENTLY OF THE INCREMENT GOING TO AN AFFORDABILITY FUND.

THAT CAN CHANGE.

AND WHAT LEVEL OF CHANGE WOULD BE REQUIRED TO MAKE THE GAP FINANCING POSSIBLE SO WE CAN ALIGN THE DEFINITION OF AFFORDABLE HOUSING.

>> YEAH.

SO I THINK WHAT LORI'S ASKING ME TO ADDRESS, ALSO, IN ANSWER TO YOUR QUESTION IS, PART OF THE ISSUE IS IF YOU REBATE -- THE FURTHER THE REBATE GOES FROM, SAY, 75%, IF IT WENT TO 50%, YOU'LL JUST PUSH PROJECTS THAT ARE EITHER ON THE MARGIN THAT WON'T HAPPEN AT ALL.

SO TO THE POINT OF YOUR QUESTION, HOW MANY HAVE STARTED SINCE THE MORATORIUM? NONE.

WE'VE BEEN IN A RISING CONSTRUCTION COST MARKET, IN ADDITION TO LAND INFLATION, AND FORTUNATELY WAGES ARE STARTING TO MOVE UP, BUT THAT'S THE DETERMINATE OF AFFORDABILITY.

SO WE HAVEN'T SEEN ANY RELIEF ON CONSTRUCTION COSTS, SO THINGS HAVEN'T GOTTEN ANY BETTER, ALTHOUGH RENTS -- THERE'S A LOT OF CONVERSATION ABOUT RENTS, AND I CAN SPEAK SPECIFICALLY TO THE RENTS THAT WE'RE ACHIEVING IN OUR DOWNTOWN PROJECTS, AND THEY'RE LOWER THAN WHAT'S BEING OFFERED IN OTHER PLACES, SO I'M NOT QUITE SURE -- THAT'S ANOTHER INTERESTING CONVERSATION, WE'RE ACHIEVING $1.71 AT BROADWAY, SO WHILE THE RENTS ARE VERY HIGH, THEY'RE NOT HIGH ENOUGH TO JUSTIFY THE NEW PROJECTS.

SO I'VE MADE THIS POINT BEFORE, AND I'LL SAY IT AGAIN, I THINK PART OF THE CHALLENGE HERE IS CONFLATING THE ISSUE OF INCENTIVIZING OR DRIVING MARKET RATE HOUSING INTO THE URBAN CORE, AND TRYING TO SOLVE FOR AFFORDABILITY.

AND IF YOU SAW ON THE SLIDES THAT LORI PRESENTED, THE NUMBER THAT REALLY STOOD OUT TO ME WAS THE LOW INCOME HOUSING TAX CREDIT PROGRAM TO GET TO 60% UNITS AT THE STATE LEVEL WAS $111,000 PER UNIT TO GET THERE.

AND SO IT'S A VERY SIGNIFICANT NEED TO SOLVE FOR AFFORDABILITY.

DOES THAT ANSWER THE QUESTION? DID THAT HELP?

>> MAYOR NIRENBERG: YEAH.

WELL, I MEAN, TO SOME EXTENT.

I GUESS MY QUESTION WAS A LITTLE BIT MORE SIMPLISTIC: IT WAS JUST THAT WHY DON'T WE USE THE INCREMENT IN THE FUND AFTER THE REBATE IS ALREADY PROVIDED.

>> HOUSTON: SO AFTER THE REBATE BURNS OFF, SO LET'S SAY THE REBATE IS 15 YEARS.

>> MAYOR NIRENBERG: CORRECT.

>> HOUSTON: AND WE USE 100% OF THE REBATE FOR AFFORDABLE HOUSING.

>> MAYOR NIRENBERG: YEAH, USE THAT NUMBER.

WHAT LEVEL WOULD BE REQUIRED FOR US TO MEET THE GAP FINANCING NEEDS FOR AFFORDABILITY TODAY?

>> HOUSTON: SO THAT WOULD BE SOMETHING THAT WE COULD LOOK AT.

IT WOULD BE COMING OUT -- IT WOULD BE -- YOU KNOW, YOU'D LOOK AT 10 YEARS OUT, 15 YEARS OUT, LOOK AT THE PROJECTS COMING ONLINE.

>> MAYOR NIRENBERG: YEAH.

>> HOUSTON: SO WE COULD LOOK AT THAT, BUT THAT'S NOT SOMETHING WE'RE RECOMMENDING AS PART OF THIS POLICY.

>> MAYOR NIRENBERG: OKAY.

WELL, I THINK IT DESERVES SOME REVIEW.

WE'RE KIND OF WALKING A LINE HERE.

BECAUSE WHAT'S HAPPENING WITH THE USAAS AND THE OTHER BUSINESSES LOCATING DOWNTOWN IS EXTREMELY IMPORTANT BECAUSE WE NEED MORE LIVE/WORK/PLAY, WE NEED MORE REVITALIZATION OF AREAS.

WE ALSO ARE ADDRESSING THE UNINTENDED CONSEQUENCES OF GENTRIFICATION AND DISPLACEMENT, WE NEED TO DO THAT BETTER.

WE HAVE A COMPREHENSIVE FRAMEWORK THAT WE HOPEFULLY WILL IMPLEMENT TO CREATE SOME OF THOSE CHANGES, BUT IF WE DON'T HAVE DEVELOPMENT OCCURRING, AND COSTS ARE -- YOU KNOW, PROJECTS SIMPLY CAN'T HAPPEN, THAT'S NOT THE INTENTION OF TWEAKING

[01:00:19]

THE REASON WHY WE'RE HERE IS BECAUSE WE ACKNOWLEDGE THAT WE ARE GETTING CLOSE TO OUR GOAL.

AND THERE'S AN AFFORDABILITY ISSUE IN SAN ANTONIO.

AND THAT SO MANY MORE SAN ANTONIANS TODAY ARE COST BURDENED BY HOUSING AND THEY'RE WATCHING THESE PROJECTS GOING UP AND THEY'RE NOT ABLE TO AFFORD THE VERY PLACE WE'RE SAYING SHOULD BE FOR EVERYONE.

SO THAT'S THE DILEMMA THAT WE'RE FACING.

I DON'T HAVE A GOOD ANSWER.

I'M STILL INTERESTED IN MY COLLEAGUES' QUESTIONS.

HOPEFULLY WE CAN ARRIVE TO AS CLOSE AS AN ACCEPTABLE POLICY, BUT I ALSO THINK WE NEED TO BE ABLE TO COME BACK AND REVIEW AND BE A LITTLE BIT MORE NIMBLE ABOUT THIS AS WE ROLL IT OUT SO AS TO NOT LOCK OURSELVES INTO A TWO-YEAR PROGRAM AND NOT BE ABLE TO MAKE CHANGES IF NECESSARY.

SO I'LL STOP THERE FOR NOW BUT I'LL TURN IT OVER TO COUNCILMAN SALDANA.

>> SALDANA: THANK YOU, MAYOR.

AND I THINK WHAT I'D LIKE TO START WITH IS JUST KIND OF A STEP BACK TO REALLY DESCRIBE WHY I THINK WE DO THIS IN THE FIRST PLACE.

BECAUSE THERE IS AN ALTERNATE UNIVERSE WHERE WE DIDN'T DO A HOUSING FIRST STRATEGY IN 2012.

AND THE DRIVING FORCE BEHIND THAT, LIKE THE DRIVING FORCE BEHIND ANYTHING THAT WE DO AT THE COUNCIL LEVEL IS DO WE GET PUBLIC OPINION TO BUY IN? DO PEOPLE AGREE THIS IS SOMETHING THIS CITY SHOULD BE DOING.

THE ARGUMENT BACK THEN WAS, YES, THIS IS SOMETHING THE CITY SHOULD BE DOING.

WE SHOULD GET MORE HOUSING INTO DOWNTOWN BECAUSE IT COSTS US MORE TO HAVE AN EXPLOSION OF HOUSING AT OUR OUTER FRINGES.

I CAN CARRY THE WATER ON THAT ARGUMENT, AND I THINK WE'RE STILL IN THAT ARGUMENT TODAY.

WE'VE ALREADY GOT INFRASTRUCTURE IN THE DOWNTOWN.

WE'VE ALREADY GOT FIRE STATIONS AND POLICE STATIONS AND ALL THE SERVICES YOU WOULD NEED IN THE URBAN CORE, AND THAT'S WHAT THE DISCUSSION WAS LIKE IN 2012.

AND WHY WE SAID HOUSING FIRST IS AN IMPORTANT STRATEGY.

SO REMEMBER HOUSING FIRST MEANS THERE'S SOMETHING THAT SHOULD FOLLOW THAT.

AND I DON'T THINK WE'VE TALKED ENOUGH ABOUT THAT, AND I THINK WE HAVE HAD SOME SUCCESS IN THAT.

IT WAS SHOULD WE ATTRACT MORE BUSINESSES AND INCENT THE USAAS OF THE WORLD, THE H-E-BS TO GET MORE EMPLOYERS? BUT WE HAVE HAD SOME SUCCESS IN THE LAST SIX YEARS.

AND I THINK I FEEL SO CONNECTED TO THIS BECAUSE, YOU KNOW, I WATCHED IN 2012, AS IT WAS BORN.

NOW IT'S A 6-YEAR-OLD TODDLER AND MY HANDS ARE ALL OVER THIS IN A LOT OF WAYS, WHETHER IT'S A GOOD OR BAD POLICY.

I CAN'T TURN MY BACK AND SAY I DIDN'T KNOW ENOUGH ABOUT WHAT THEIR STRATEGY WAS.

AND SO THAT'S WHY WHEN WE HIT THE MORATORIUM, MAYOR, ABOUT A YEAR AGO, IN DECEMBER WE TALKED ABOUT GOVERNANCE, OUR FINGERPRINTS WERE ON IT WHEN WE LOOKED AT THE ARTS RESIDENCE.

I WAS EMBARRASSED BY IT.

I THINK WE SHOULD HAVE BEEN TO KNOW THE UNITS WERE SUBSIDIZED TO THE LEVEL OF $173,000.

WHEN YOU SHOW ME THE MUSEUM REACH LOSS AND THE AMOUNT IS 155, I'M NOT STUNNED BY IT.

IT'S NOT SOME INSURMOUNTABLE WE COULD CLAIM, BECAUSE THE ARTS WAS $173,000 FOR CONDOS THAT WERE LUXURY.

HERE'S WHERE I'M GOING WITH THIS.

I'M GOING TO ASK SOME QUESTIONS AND MAYBE WE'LL GO BACK AND FORTH ON THIS.

BUT WE STILL NEED THE PUBLIC TO SUPPORT WHAT WE'RE DOING HERE.

AND IF THE PUBLIC DOESN'T FEEL LIKE ANY OF THIS STRATEGY IS RELEVANT TO THEM, THAT HOUSING IN THE DOWNTOWN THEY WILL NEVER BE ABLE TO AFFORD FOR THE MAJORITY OF THE DOWNTOWN RESIDENTS, THEY WON'T BE BEHIND IT AND THEY WON'T SUPPORT IT.

WE DO HAVE TO MAKE A VERY GOOD ARGUMENT THAT WHAT WE'RE TRYING TO DO HERE IS FOR THE BENEFIT OF THE ENTIRE CITY.

AND IF WE DON'T FEEL LIKE WE'RE THERE AND THE CONSEQUENCE OF THAT IS THAT THE DEVELOPMENT COMMUNITY'S UPSET WITH US, I'M OKAY WITH THAT.

THE DEVELOPMENT COMMUNITY SAYS THAT MEANS WE CAN'T PENCIL ANY PROJECTS IN THE DOWNTOWN.

THAT MEANS WE CAN'T BUILD MORE HOUSING OR MARKET RATE, THAT'S THE CONSEQUENCE.

THEY CAN'T BUILD ANY MORE HOUSING THERE.

WE'LL SEE WHAT HAPPENS WITH THE 6800 UNITS WE HAVE BEEN ABLE TO PUT UP ONLINE.

SO I'M TRULY COMMITTED TO TRYING TO BE AS CREATIVE AS POSSIBLE.

I'M TRULY COMMITTED TO TAKING SERIOUS THE MAYOR'S HOUSING POLICY TASK FORCE AROUND HOUSING AFFORDABILITY AS A CRISIS.

YOU CAN'T SAY HOUSING AFFORDABILITY IS A PRIORITY AND AT THE SAME TIME MORE HOUSING THAT IS MARKET RATE.

AT THE END OF THE DAY, HOUSING IS HOUSING AND PEOPLE ARE GOING TO FIND ELIGIBLE PLACES TO LIVE.

THAT'S MY BIAS.

THAT'S MY CARDS FACE UP GOING INTO THIS DISCUSSION.

I'VE HAD A LOT OF RELUCTANCE IN GETTING TO YEAR SEVEN, YEAR EIGHT.

WE'RE IN YEAR SIX, AND NOT BEING ABLE TO SAY WE CAN TURN THE SPIGOT OFF.

THE ORIGINAL STUDY FROM THE CONSULTANTS WHO CAME IN WHO GAVE US THE HOUSING STRATEGY CLEARLY SAID AT SOME POINT YOU NEED TO PULL BACK, THAT THE MARKET WILL ESTABLISH ITSELF.

SO THAT'S THE FIRST QUESTION.

[01:05:01]

SO THE QUESTION IS RENTAL RATES CURRENTLY DON'T SUPPORT LAND PRICES AND CONSTRUCTION COSTS.

DOES THAT MEAN THAT WE NEED TO GET TO $2 A SQUARE FOOT TO HAVE RENTS SUPPORT CONSTRUCTION AND LAND COST? DOES THAT MEAN 170 IS NOT ENOUGH? WHERE CAN WE PEN THAT TO SAY AS A DEVELOPER ARE WE COMFORTABLE DOING THIS ON OUR OWN?

>> DAVID, I'M GOING TO CALL ON YOU AGAIN TO SPEAK TO THAT.

>> I THINK THERE'S BEEN SIGNIFICANT CHANGES TO THE POLICY THAT ADDRESS THAT.

FOR INSTANCE, IF YOU'RE BUILDING FOUR-STORY WOOD FRAME NEAR THE PEARL, THAT'S SHUT OFF IN THIS SUGGESTED POLICY SAYING THAT'S ENOUGH.

YOU CAN GET $2 RENTS IN THAT AREA AND FOUR-STORY WOOD FRAME CONSTRUCTION WITHOUT UNDERGROUND PARKING.

YOU COULD DO IT.

SO EVERY PROJECT IS SOMEWHAT NUANCES TO WHAT IT COST.

BUT I WOULD SAY THAT TO SPEAK TO YOUR FIRST STATEMENT ABOUT HOW DOES THE PUBLIC, HOW DO YOU CARRY THIS TO THE PUBLIC.

I WOULD SAY THAT IN GENERAL THE 7500 UNIT AND THE 10,000 GOAL IS A DROP IN THE BUCKET TO WHAT'S BEING BUILT IN BEXAR COUNTY.

AND THE COST DIFFERENTIAL BETWEEN URBAN CORE AND IN THE SUBURBS IS NORTH OF $100,000 PER UNIT.

JUST IF YOU'RE BUILDING GARDEN APARTMENTS IN WESTOVER HILLS OR TO THE NEAR WEST SIDE OR EVEN AT BROOKS CITY BASE.

WHERE YOU'RE BUILDING WITH SURFACE PARKING.

SO IT'S VERY SUBSTANTIAL.

AND SO WHAT THIS POLICY IS ATTEMPTING TO DO ALSO IS ALSO TO DRIVE HIGHER DENSITY.

SO IT'S REWARDING IN TIER ONE, A TALLER BUILDING SIX-PLUS STORIES THAT COST SIGNIFICANTLY MORE.

ULTIMATELY YIELDING BENEFITS TO THE TAXPAYERS IN THE LONG TERM.

SO DON'T WORRY ABOUT MAKING THE DEVELOPMENT COMMUNITY MATTER.

I DON'T REALLY -- I DON'T HAVE A FEELING OF IT AS A DEVELOPER, EVEN THOUGH IT'S OBVIOUS I AM.

BUT AS A COMMUNITY MEMBER, I JUST FEEL THAT IF WE CONTINUE TO SPRAWL AND CONTINUE TO GROW THE WAY WE'RE GROWING OR HAVE GROWN FOR DECADES SINCE THE '50S, THEN WE'RE JUST GOING TO ADD TO OUR BURDEN.

OR WE BECOME LIKE THE CITY OF DALLAS WHERE ALL THE GROWTH GOES TO SCHERTZ AND NEW BRAUNFELS, AND THE CITY OF SAN ANTONIO IS BEARING THIS TREMENDOUS BURDEN OF WE'RE PROVIDING THE TIER ONE HOSPITALS.

WE'RE PROVIDING THE MUSEUMS AND EVERYTHING ELSE THE TAX BENEFITS OF ALL THE PROJECTS, THE PROJECTS THAT I HAVE EVEN DONE, WHEN THOSE 15-YEAR ABATEMENTS OR REBATE PERIODS, THE 75% WEARS OFF, IT'S MILLIONS OF DOLLARS OF REVENUES THAT ARE IN PLACE ON BUILDINGS THAT ARE SUBSTANTIAL HIGH-QUALITY, WELL-BUILT, WALKABLE.

TO ME IT'S A FAIRLY EASY ARGUMENT.

I DON'T KNOW HOW THE AVERAGE CITIZEN, WHETHER THEY'RE READY TO ROLL UP THEIR SLEEVES AND READY TO UNDERSTAND THE TOTAL IMPACT OF SPRAWL OR NOT.

I CAN'T SPEAK TO THAT.

>> SALDANA: I THINK MOST OF THE PUBLIC WOULD SHAKE THEIR HEAD NOT IN AGREEMENT WITH IT.

IT'S IF YOU'RE BUILDING A CITY AND YOU KNOW SOME THINGS TO BE FACTUALLY TRUE, WHICH IS THAT YOU'RE GOING TO ADD A MILLION PEOPLE.

YOU'RE GOING TO HAVE TO BUILD THOSE HOMES.

IF YOU GAVE ME THE DICHOTOMY OF BUILDING UP RATHER THAN OUT, I'LL CHOOSE UP.

DENSITY.

I'LL CHOOSE AREAS THAT ALREADY HAVE INFRASTRUCTURE, EMERGENCY SERVICES.

SO LET'S BUILD UP.

AND I THINK THAT'S WHAT YOU'RE SUGGESTING HERE.

THE WAY I HAVE DESCRIBED IT TO FOLKS, I HAVE ACTUALLY USED YOUR NAME.

I SAID THE DAVID ADELMAN SCHOOL OF THOUGHT, YOU HAVE PROJECTS IN DOWNTOWN, THE MAVERICK AND HEMISFAIR, OR IT'S FURTHER OUT.

THE COST OF LAND IS CHEAPER.

IT'S NOT AS HARD TO BUILD OUT THERE.

SO I THINK THAT'S THE ARGUMENT SOMEBODY COULD NOD THEIR HEAD IN AGREEMENT.

IF YOU DIDN'T DO THIS CCHIP OR ICRIP WOULD IT BE SO MUCH EASIER TO BUILD OUT FURTHER BECAUSE OF ALL THE OBSTACLES THAT EXIST IN THE URBAN CORE? I THINK THAT'S THE CASE YOU'RE MAKING.

>> THERE'S ANOTHER POINT WHICH IS WE HAVE MOMENTUM.

WE'RE ATTRACTING DEVELOPERS.

I MET SOME PEOPLE FROM OHIO AND OTHER PLACES THAT ARE COMING IN AND INVESTING IN THE URBAN CORE, SO WE HAVE MOMENTUM.

IT'S WORKING.

AND I WOULD HATE TO SEE IT STOP.

IN FACT, YOU MENTIONED HOUSING FIRST AND THE OTHERS THAT FOLLOWED.

AND LOOK AT THE OFFICE THAT'S FOLLOWING.

AND A LOT OF THAT OFFICE IS AT RENTAL RATES THAT ARE SIGNIFICANTLY HIGHER THAN THE SUBURBS.

AGAIN, THE HIGHER COST OF CONSTRUCTION, IRREGULAR-SHAPED PARCELS, PARKING.

WE'RE SEEING THAT DEVELOPMENT HAPPEN WITHIN THE CITY AND THE LONG-TERM BENEFITS TO THE CITY ARE TREMENDOUS.

I THINK IT'S ACTUALLY WORKING, SO MY POINT IS WHY WOULD YOU WANT TO STOP WHAT YOU KNOW IS WORKING?

>> SALDANA: SO I THINK THE ONLY RESPONSE I WOULD HAVE TO THAT IS IS THAT -- THE ONLY REASON I WOULD PAUSE -- WE HAVE

[01:10:01]

PAUSED FOR A YEAR NOW AND THE PROOF IS IN THE PUDDING.

NOBODY HAS COME IN AND SAID I WANT TO BUILD THE PROJECT.

PART OF THAT IS BECAUSE FOLKS SAY THE CITY WILL PASS CCHIP.

I'LL WAIT OUT FOR THE CCHIP TO HAPPEN.

>> NO, I DON'T THINK SO.

I WOULD SAY GIVEN HOW HARD IT IS TO ASSEMBLE LAND, FIND A PROJECT, GET THE PROJECT GOING, IT'S EITHER HAPPENING OR IT'S NOT.

PEOPLE AREN'T GOING TO WAIT AROUND.

NOW, YOU MAY HAVE A FEW OUTLIERS THAT OWN LAND THAT MIGHT WAIT AROUND.

BUT I WOULD SAY NO.

I REALLY DON'T THINK THAT'S IT.

WE ARE IN A SIGNIFICANTLY -- WHERE CONSTRUCTION COSTS HAVE BEEN RISING RAPIDLY AND NOBODY CAN SEE ANY RELIEF IN SIGHT.

SO IT'S GOING TO BE MORE CHALLENGING.

IN FACT, THE AFFORDABILITY ISSUES THE MAYOR WAS TALKING ABOUT ARE GOING TO CONTINUE TO BE MORE CHALLENGING.

>> SALDANA: MAYBE JUST A THOUGHT EXPERIMENT.

IF THERE'S A THIRD PROPOSITION, AND THAT THIRD PROPOSITION IS, YOU KNOW WHAT? THE CCHIP, MAY IT REST IN PEACE.

WE GOT TO 7500 UNITS.

WE'RE AT 6800 NOW.

IN THE MEANTIME IT BUILD MOMENTUM THAT WE DIDN'T HAVE IN 2012.

WE HAVE THE DOWNTOWN GROCERY STORE, USAA, MORE PEOPLE BUILDING DOWN HERE, YOU HAVE UTSA WHO IS GOING TO ADD A NUMBER OF STUDENTS WHO ALL NEED HOUSING, ALL OF THOSE ELEMENTS THAT WEREN'T TRUE IN 2012, WOULDN'T YOU BELIEVE THAT CHANGE IS THE TENOR OF THE PRIVATE SECTOR IN TERMS OF HOW THEY BUILD AND WHAT THEY BUILD, KNOWING THE EXISTENCE OF NEW EMPLOYERS AND EXISTENCE OF NEW DEMOGRAPHICS?

>> SURE.

AT CERTAIN PRICE POINTS YOU PROBABLY WILL SEE SOME DEVELOPMENT.

IF YOU LOOK AT THE SELLERS AND WHAT THEY ACHIEVE -- I'LL CALL IT SUPER LUXURY -- CAN PROBABLY MAKE IT HAPPEN.

THEY'RE DEMONSTRATING A DEMAND AT THAT PRICE POINT.

YOU WILL SEE SOME PROJECTS THAT DO HAPPEN.

BUT BY AND LARGE YOU'LL START CLIPPING OFF THE BOTTOM.

AND I THINK YOU'LL SEE IT SLOW DOWN.

SO THAT'S MY TAKE.

MAYOR, I ALSO WANTED TO RESPOND TO YOUR ONE YEAR VERSUS TWO YEARS.

IT TAKES US AT LEAST A YEAR OF PLANNING TO PREPARE PLANS.

TO DO PROJECTS.

AND IT'S THE UNCERTAINTY.

SO IF YOU GO BACK PRE2012, PRECCHIP, WHAT USED TO HAPPEN AND WHAT WILL HAPPEN AGAIN IS YOU WILL HAVE PROJECTS THAT WILL COME TO YOU AND THEY'LL HIRE EITHER A LOBBYIST OR BE PREPARED TO DO IT THEMSELVES AND THEY'LL GO AROUND THE ROOM AND TALK TO YOU ABOUT THE PROJECT ABOUT WHAT'S POSSIBLE, AND YOU'LL CONSIDER IT.

THE IDEA OF THE CCHIP WAS REALLY TO SAY WE'RE GOING TO HAVE A TRANSPARENT OPEN PLAYING FIELD AND WE'RE GOING TO INVITE MORE DEVELOPERS TO COME AND WORK ON COMPLEX PROJECTS IN THE CORE WHERE WE DON'T SEE ALL THE ACTION.

I MEAN, AGAIN, YOU KNOW, I THINK THE TWO YEARS, YOU KNOW, IS THE MINIMUM TIME TO CONSIDER.

IT WAS A GOOD SUGGESTION BY STAFF TO LIMIT IT TO TWO YEARS.

YOU CAN ALWAYS STEP IN AS CITY COUNCIL AND MAKE A CHANGE A YEAR LATER.

NOT A PROBLEM.

THAT HAPPENS ALL THE TIME AND PEOPLE UNDERSTAND THOSE THINGS CHANGE.

BUT IT'S BETTER TO GIVE A TWO-YEAR RUNWAY TO THE PROGRAM, I THINK.

>> SALDANA: THANK YOU.

THANK YOU, MR. ADELMAN.

I THINK THOSE ARE THE ONLY QUESTIONS I'VE GOT FOR YOU.

YOU TOUCHED ON HISTORY, AND I THINK HISTORY IS IMPORTANT HERE.

BECAUSE THE PENDULUM HAS SWUNG.

I REMEMBER WHEN THE PENDULUM WAS WAY OFF, AND IT WAS HOW MANY COUNCIL MEMBERS DO YOU KNOW? HOW WELL DO THEY LIKE YOU? IF THEY LIKE YOU IT WILL GO BEFORE THE COUNCIL AND YOU'LL GET THE INCENTIVES YOU NEED TO BUILD THE PROJECT.

WHETHER THAT'S PROJECTS BUILT PRIOR TO 2012.

IT WAS A BAD SYSTEM.

IT TOOK TEN MONTHS FOR ANY DEVELOPER TO GET ANY PROJECT GOING.

IT WAS A BAD SYSTEM.

DEPENDING ON IF YOU HAD A GOOD RELATIONSHIP WITH COUNCIL MEMBERS.

THE CCHIP TOOK OUT THE POLITICS, AND I THINK WE'VE SEEN THE BENEFIT OF THAT.

NOW THE QUESTION IS HAS THE PENDULUM SWUNG SO FAR THAT IT'S JUST, YOU KNOW, WE'VE GOT A DEVELOPER COMMUNITY WHO'S BECOME JUST, YOU KNOW, ASSURED AND ENTITLED THAT THESE ARE THE PROJECTS THAT I'M SUPPOSED TO GET, THESE ARE THE INCENTIVES I NEED TO GET.

AND SO WE'RE LOOKING AT WHAT IS THE SWEET SPOT.

THAT'S WHY YOU HAVE BROKEN THIS UP INTO TWO TIERS, I'M IMAGINING.

I STILL QUESTION WHETHER WE NEED ANYTHING IN THE TIER TWO.

AND MAYBE YOU'LL ADDRESS THAT.

BUT LET ME ASK THIS QUESTION FIRST.

I DON'T KNOW IF YOU HAD THIS IN YOUR PRESENTATION, BUT YOU DID PROVIDE IT TO MY STAFF.

IT WAS A GRAPH THAT SHOWS THE DESIRED RATE OF RETURN FOR A DEVELOPER TO GET ANY PROJECT TO PENCIL IS 7%.

IF YOU HAVE SOMETHING THAT'S ANYWHERE CLOSE TO THAT, IT WOULD BE HELPFUL FOR ME TO TRY TO ASK THIS QUESTION.

>> SO THAT'S THAT SLIDE.

AND SO WE DID AN ORDER OF MAGNITUDE FOR A TIER ONE PROPERTY, BASED ON THE PROPERTY VALUES WILL CHANGED BASED ON WHETHER IT'S ON THE RIVER OR OFF THE RIVER.

AND SO WITHOUT INCENTIVES, A PROPERTY CAN GET 4.6% TO 5.7% IN A RETURN.

WITH OUR CCHIP INCENTIVES, IT'S 5.1 TO 6.3%.

AND THIS IS JUST FOR A 20% MIXED INCOME HOUSING PROJECT AT WHICH 10% IS AT 60 AND 10% IS AT 80.

[01:15:03]

TO GET IT TO THAT DESIRED 7%, YOU NEED AN ADDITIONAL $4 MILLION TO $10 MILLION IN CASH.

>> SALDANA: WELL, I THINK I'M LOOKING AT JUST THE TWO MIDDLE COLUMNS.

THE NO INCENTIVES VERSUS THE CCHIP INCENTIVES.

AT THE END OF THE DAY WE'RE NOT IN THE BUSINESS OF BUILDING ANY OF THESE RESIDENTIAL PROPERTIES.

WE'RE NOT IN THE BUSINESS OF BUILDING ANY HOMES BUT WE ARE TRYING TO OFFER SOME CARROTS TO SATISFY THE OBJECTIVE OF HOUSING IN THE URBAN CORE.

WHAT WE DO BY PUTTING THIS OUT AS A NEW OPPORTUNITY IS HERE'S THE MENU OF OPTIONS.

PICK AND CHOOSE FROM THE ONES YOU WOULD LIKE.

AND SO MY WORRY IS IF WE PUT THESE OUT THERE THAT YOU MAY NOT GET ANYBODY TO BITE ON THE 20% OF 60% AMI.

YOU MIGHT NOT GET ANYBODY TO BITE ON ANY OF THE AFFORDABILITY PROJECTS.

AS LONG AS PEOPLE ARE MORE INTERESTED IN MORE PROFIT RATHER THAN LESS PROFIT, THEY'LL GO TO THE MARKET RATE PROJECTS.

7.5% RETURN TO GET NO INCENTIVES IN TIER TWO IS MORE THAN A 7% INCENTIVE TO GO 60% AMI.

LOOK, I WOULD LOVE NOTHING MORE THAN TO SEE UNITS AT THE PEARL AT 60% AMI, 20%.

THAT MEANS THE PEOPLE WHO DON'T MAKE A TON OF MONEY, A FIRST-YEAR TEACHER, CAN LIVE BY THE PEARL.

I WOULD LOVE FOR A DEVELOPER TO TAKE ADVANTAGE OF THAT BUT I DON'T THINK THEY WILL.

MORE MONEY IS BETTER THAN LESS MONEY AND IT'S A HIGHER RATE OF RETURN THAN 7%.

THAT'S MY CONCERN WITH TIER TWO.

I DON'T THINK ANY DEVELOPER TAKES ADVANTAGE OF THE AFFORDABILITY OPTION.

>> THEY WOULD EITHER HAVE TO BUILD FOUR-STORY STICK MARKET RATE.

IF THEY DID AFFORDABILITY THEY WOULD GET THE INCENTIVES, OR IF THEY WENT ABOVE FIVE STORIES THEY WOULD GET THE INCENTIVES.

IF THEY REALLY WANTED INCENTIVES THEY HAVE TO PROVIDE THAT AFFORDABILITY.

THAT IS OUR STICK.

THAT IS OUR CARROT.

>> SALDANA: SO I JUST DON'T THINK THAT WE'RE THERE AT TIER TWO TO JUSTIFY HAVING ANY OPPORTUNITIES THERE ANY MORE.

MAYBE YOU'VE GOT A COMMENT ABOUT THAT.

>> FOR TIER TWO WE KNOW WE HAVE PLENTY OF FOUR-STORY STICK BUILDINGS.

WE DON'T HAVE THE DENSITY OR THE AFFORDABILITY.

SO WE DO WANT TO SEE MORE DENSITY IN THE DOWNTOWN AREA, WHICH IS TIER TWO.

OR THAT AFFORDABILITY.

SO WE'RE INCENTING THE PRODUCT TYPES WE WOULD LIKE TO SEE.

>> SALDANA: WHAT HAPPENS WHEN EMPLOYEES START COMING IN AND THERE'S A DEMAND FOR HOUSING THERE THAT DOESN'T EXIST TODAY? WHAT GETS BUILT IN THE ABSENCE?

>> WE WOULD BUILD FOUR-STORY STICK BUILD.

THAT'S WHAT WOULD HAPPEN.

THAT IS STILL UP FOR DEBATE WHETHER OR NOT THAT NEEDS INCENTIVES.

WHAT WE'RE SAYING IS WE'VE SEEN PLENTY OF THAT.

WE DO NOT NEED TO INCENT THAT ANYMORE.

BUT DEPENDING ON WHERE THAT PROJECT IS, IF IT'S ON THE RIVER, THEN THE PROJECT LAND VALUE IS MUCH HIGHER AND THEY COULD NEED INCENTIVES.

SO DEPENDING ON WHERE IT IS, IT MAY NOT HAPPEN.

>> SALDANA: MAYBE THIS IS TOO SIMPLISTIC, BUT MY QUESTION IS WHY IS AN EIGHT-STORY PROJECT OF MARKET RATE WITH INCENTIVES WORTH PUBLIC DOLLARS VERSUS A FOUR-STORY THAT'S NOT, THAT'S STILL MARKET RATE? YOU HAVE FOUR STORIES OF MARKET RATE VERSUS EIGHT STORIES OF MARKET RATE.

WHY IS THAT SO IMPORTANT?

>> IT HAS TO DO WITH QUALITY, YOU CHANGE THE MATERIALS.

AND BEING ABLE TO PROVIDE MORE DENSITY IN A SMALLER FOOTPRINT.

YES.

AND SO YOU'RE GOING ABOVE SIX STORIES.

AND SO YOU HAVE TO HAVE CONCRETE AND STEEL VERSUS STICK.

AND SO YOUR PROJECT IS MORE QUALITY.

AND SO WE'RE INVESTING IN LONGER-TERM INVESTMENTS.

>> SALDANA: MY QUESTION IS WHAT BUSINESS DO WE HAVE AT THAT POINT? IF WE WANTED EIGHT STORIES.

YOU'RE GOING TO HIRE CONSTRUCTION COSTS FOR CONCRETE, STEEL BEAMS. WHY DO WE HAVE ANY BUSINESS IN THAT?

>> SCULLEY: THAT'S THE UNIFIED BUILDING CODE.

>> SALDANA: BUT WHY DO WE CARE?

>> CAN I TAKE A SHOT AT IT? I THINK I UNDERSTAND THE QUESTION YOU'RE ASKING, WHICH IS THE COST OF SPRAWL, WHAT I TALKED ABOUT EARLIER.

>> SALDANA: THAT'S A GOOD ARGUMENT.

>> THE AMERICAN SOCIETY OF CIVIL ENGINEERS ESTIMATES WHAT THE PUBLIC INFRASTRUCTURE COSTS ARE WHEN YOU LOOK AT DENSITY.

SO IF YOU WERE BUILDING AT 30 UNITS TO THE ACRE ACROSS YOUR CITY, OR 60 UNITS TO THE ACRE, THE HIGHER THE TENTH THE LOWER THE COST OF YOUR INFRASTRUCTURE.

LESS HIGHWAY RAMPS, LESS SEWER LINES, WATER LINES EXTENDING OUT FURTHER.

SO IT IS PURELY ABOUT WE HAVE A MILLION PEOPLE THAT WE'RE TRYING TO PLACE.

AND YOU CAN PLACE A LOT MORE OF THEM IN EIGHT STORIES THAN YOU CAN IN FOUR STORIES.

>> SALDANA: THAT'S THE CONNECTION I'M TRYING TO MAKE.

THAT'S IN MY HEAD, WHY ARE WE STILL EVEN IN THE BUSINESS? AND IF YOU TIE IT BACK TO THAT PIECE THEN YOU HAVE A LEGITIMATE POLICY ARGUMENT FOR IT.

>> SCULLEY: I WOULD ADD TO

[01:20:03]

THAT LOST CONSUMPTION.

LESS WATER CONSUMPTION, LESS ENERGY CONSUMPTION IN HIGH-RISE DENSITY.

>> SALDANA: YOU PUT UP THIS SLIDE AND IT SHOWS US THE MONEY.

WE KNOW WHAT IT WOULD COST US IF WE TRULY WANTED TO SAY DO AWAY WITH ANY PROJECT THAT IS MARKET RATE, AND WE ONLY WANT TO INCENT 80% AMI AND ONLY WANT TO INCENT 60% AMI.

IT'S GOING TO COST US 1 TO 10 TO $15 MILLION IF WE ONLY WANTED 60% AMI.

YOU GAVE US A NUMBER THAT LOOKS LIKE 300.

>> SO IT WOULD CREATE --

>> SALDANA: 50,000?

>> THAT 20 AFFORDABLE UNITS AT 60% AMI ANNUALLY.

SO AND THAT WOULD BE OUTSIDE OF THE DOWNTOWN AREA.

IF YOU WERE TO PLACE THOSE AFFORDABLE UNITS IN THE DOWNTOWN AREA, THAT SUBSIDY REQUIRED COULD DOUBLE, YOU WOULD HELP FACILITATE TEN UNITS IN THE DOWNTOWN AREA.

>> SALDANA: I GUESS THE QUESTION I'M ASKING IS ABOUT THE 25% SET ASIDE FOR AFFORDABLE HOUSING.

HOW MUCH MONEY DOES THAT GIVE US?

>> $650,000 ANNUALLY IN YEAR TWO OR THREE.

>> SALDANA: I SEE JIM PLUMBER.

THINK ABOUT THIS QUESTION AS YOU'RE COMING UP.

HOW MUCH MONEY DOES A PFC -- A PFC IS FOCUSED EXCLUSIVELY ON AFFORDABLE HOUSING.

YOU'RE ALMOST GIVING A SUPPLEMENT TO THIS AFFORDABLE HOUSING.

HOW MANY DOLLARS DO WE HAVE IN PLAY FOR AFFORDABLE HOUSING?

>> WE JUST COMMITTED TO $2 MILLION AND WE HAVE ANOTHER $3 MILLION IN THE BANK.

WITH THAT, ONE OF THE THINGS WE'RE DOING IS IN OUR 80% PROGRAM WE ARE PUTTING IN A PROVISION TO BUY DOWN FROM 80% TO 60% RENTS.

AND IN THAT FACT PATTERN YOUR INCREMENT IS MUCH, MUCH SMALLER.

SO IF YOU'RE BUYING DOWN FROM MARKET RATE TO 60%, IT'S A BIG NUMBER.

IF YOU'RE BUYING DOWN FROM 80% TO 60%, IT'S MUCH SMALLER.

I HAVEN'T RUN THAT $500,000 NUMBER, BUT I WOULD PREDICT WE'RE LOOKING AT TRYING TO GET TO 10% OF THE PROJECT OFF OF THE MONEY WE MAKE OFF OF THE PROJECT, WHICH IS USUALLY $100,000 TO $150,000 A YEAR.

AND SO OUR PROGRAM IS DESIGNED TO TRY AND JUST BUY DOWN THAT INCREMENTAL DIFFERENCE AND THE DOLLARS GO MUCH FURTHER.

LORI IS GIVING YOU THE COST OF BUYING IT DOWN FROM A MARKET RATE PROJECT TO A 60%.

BUT IF YOU HAVE ALREADY 80% UNITS IN THERE, THE DIFFERENCE IN YOUR COST IS PROBABLY $200 A MONTH.

THE DIFFERENCE BETWEEN MARKET RATE AND 60% RENT IS OVER $1500 A MONTH.

AND SO THOSE NUMBERS ARE GOING TO STRETCH FARTHER IF WE COMBINE OUR PROGRAMS AND WE USE OUR PROGRAMS THAT WE'RE ALREADY UTILIZING AND TRY AND BUY FROM THE 80% TO THE 60%.

AND WE HAVEN'T RUN THOSE NUMBERS SPECIFICALLY AGAINST WHAT LORI SHOWED US, BUT WE CAN CERTAINLY DO THAT.

BUT THAT'S THE PROGRAM THAT WE'RE IMPLEMENTING WITH THE PFCS ON A REGULAR BASIS.

AND SO I THINK THOSE DOLLARS ARE GOING TO STRETCH FURTHER AS LONG AS WE WORK TOGETHER TO ACHIEVE THE GOALS THAT YOU WANT.

>> SALDANA: YOU HAVE A $2 MILLION FUND IN THAT FOR US TO DEPLOY THESE KINDS OF STRATEGIES?

>> YOU HAVE $3 MILLION TODAY, YES.

>> SALDANA: SORRY.

REPEAT THE NUMBER AGAIN, LORI.

WHAT IS THIS FUND GOING TO CREATE, THE 25% SET ASIDE?

>> WE ANTICIPATE ABOUT 650,000 A YEAR.

>> SALDANA: WHAT IS GOING TO BE THE AMOUNT OF MONEY WE HAVE TO DRIVE SOME OF THESE PROJECTS DOWN TO AFFORDABILITY? IF I'M LOOKING AT THE PFC, IT'S ABOUT 3 MILLION.

YOU'RE DOING PROJECTS ALL OVER THE CITY, NOT JUST IN THE DOWNTOWN.

BUT YOU MIGHT BE ABLE TO PLAY IN THIS SPACE, I THINK 37 LET ME JUST WRAP UP .

I WOULD FEEL VERY PROUD IN FIVE OR SIX YEARS, FROM 2012 TO 2018, THAT IN SIX YEARS FROM TODAY WE DIDN'T SUBMIT TO EVERY ARGUMENT ABOUT IT NOT PENCILING OUT.

WE DIDN'T SUBMIT TO EVERY ARGUMENT THAT IT'S IMPOSSIBLE.

WE DIDN'T SUBMIT TO EVERY ARGUMENT THAT THE NUMBER IS JUST TOO HIGH AND GOT AT LEAST A PROJECT DONE THROUGH ACCOMMODATION OF CCHIP, THROUGH ACCOMMODATION OF PFC.

WE'RE GOING TO VOTE ON ONE OF THOSE TOMORROW THAT LOOKS LIKE THAT.

I WOULD LIKE TO SEE A PROJECT LIKE THAT.

IT WOULD HELP ME SLEEP AT NIGHT IF WE PUT IT IN AS A GOAL THROUGH THE CCHIP THAT WE'LL GET ONE PROJECT THAT'S 300 UNITS, THAT 150 OF THEM IS AT A BREAK DOWN OF 60% AMI.

I WOULD FEEL A LOT BETTER, NOT ONLY ABOUT THE SPRAWL VERSUS

[01:25:03]

URBAN DENSITY CONVERSATION.

I WOULD FEEL MUCH MORE COMFORTABLE SAYING AND WE'RE ALSO MAKING SURE THAT YOUR CHILDREN WHO ARE GOING TO SCHOOL WHO ARE AT UTSA, WHO ARE FIRST-YEAR CPAS CAN AFFORD TO LIVE SOMEWHERE IN THE DOWNTOWN BECAUSE THERE'S A PROJECT THAT HAS 150 UNITS THAT THEY MIGHT BE ELIGIBLE FOR, VERSUS ZERO.

I THINK THAT'S WHAT WE MARCH TOWARD IF WE PASS THE CCHIP WITHOUT THOSE GOALS IN MIND.

IN MY OPINION I DON'T WANT TIER TWO AT ALL AND I WANT TO GO AFTER PUTTING ANY RESOURCES WE HAVE AS FINITE AS POSSIBLE IN TIER ONE.

OR SAY IF YOU'RE NOT WILLING TO PLAY BALL AT 60%, WE'RE NOT INTERESTED IN THE PROJECT.

THAT'S WHAT I WOULD SUGGEST.

I WOULD LEAVE IT UP TO MY COUNCIL COLLEAGUES WHO ARE STUDYING THIS AS WELL.

I WANT TO FEEL THAT THE FINGERPRINTS WE'RE PUTTING ON THIS AS A COUNCIL ARE NOT GOING TO LEAD US TO FEEL ASHAMED OF AN OUTCOME WE COULDN'T PREDICT, BUT I THINK SOME OF THE OUTCOMES HAVE BEEN POSITIVE FOR US AT THIS POINT.

THEY HAVE BEEN POSITIVE EVEN THAT WE SLOWED IT DOWN TO MAKE SURE THESE PROJECTS DON'T GET OUT OF HAND.

AND I THINK YOU'VE DONE THAT WITH THIS OPPORTUNITY HERE, LORI.

YOU SAID WE'RE NOT GOING TO DO THESE PROJECTS THAT CAP OUT AT 350,000 PER PROJECT IS THE INCENTIVE YOU DESCRIBED.

I'M HAPPY WE'RE TALKING ABOUT AT.

I DID THINK IT WAS PREMATURE WE WERE LOOKING AT THIS LAST WEEK.

IT WILL BE SOMETHING THAT WE'LL KICK OURSELVES IF WE LOOK BACK AND SAY WE DIDN'T GET IT RIGHT ON THE SECOND ROUND.

THIS IS AN OPPORTUNITY FOR US NOT JUST TO ENGAGE THE COMMUNITY OUTSIDE, BUT FOR US AS POLICYMAKERS TO UNDERSTAND THESE POLICIES ARE IMPORTANT.

IF YOU DON'T SET OUT MENUS WHERE THE CARROTS AND STICKS DON'T DRIVE YOUR OUTCOME, YOU END UP INCENTIVIZING PROJECTS THAT DIDN'T NEED IT TO BEGIN WITH, AND THAT'S MY BIGGEST CONCERN.

MAYOR, I DON'T THINK I HAVE ANY OTHER QUESTIONS, BUT I APPRECIATE THE AMOUNT OF TIME YOU HAVE ALLOWED ME TO JUMP IN ON THIS.

>>.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN SALDANA.

COUNCILMAN COURAGE.

>> COURAGE: THANK YOU, MAYOR.

THERE WAS SOMETHING THAT YOU MENTIONED -- WELL, THAT CAUGHT MY ATTENTION.

YOU TALKED ABOUT THE STAKEHOLDER INPUT.

WHO REPRESENTED THE TAXPAYERS AT THOSE MEETINGS? BECAUSE THEY'RE STAKEHOLDERS?

>> THE NEIGHBORHOODS, THE PROPERTY OWNERS AND THE HOME OWNERS, THEY REPRESENTED THE TAXPAYERS.

>> COURAGE: WELL CERTAIN INCENTIVES WOULD BE BUILT IN THEIR NEIGHBORHOODS.

BUT DID THEY TALK MUCH ABOUT THE TAX CONSEQUENCES OF PAYING FOR THESE INCENTIVES? WAS THAT PART OF THEIR CONVERSATION?

>> NO.

IT WAS NOT PART OF THEIR CONVERSATION.

>> COURAGE: ONE OF THE THINGS I'D LIKE TO SEE, SO I UNDERSTAND IT BETTER.

WHEN WE TALK ABOUT AFFORDABLE UNITS AND WE'RE TALKING IN SOME OF THESE INCENTIVES TO HAVE AFFORDABLE UNITS OF 80% OR 60% OF AMI.

YOU KNOW, WHAT IS THE ACTUAL PRICE FOR A ONE-BEDROOM UNIT AT 60%? OR A TWO-BEDROOM UNIT AT 60%? OR A TWO-BEDROOM UNIT AT 80%? I'M NOT ASKING FOR YOU TO GIVE THOSE RIGHT NOW, BUT I THINK THOSE ARE SOME OF THE FIGURES THAT I FOR ONE WOULD LIKE TO SEE TO UNDERSTAND WHAT THE VALUE OF AFFORDABILITY REALLY IS.

I'VE SEEN NUMBERS THAT SAY THE AVERAGE VALUE IS SO AND SO.

BUT WHAT IS IT REALLY GOING TO COST SOMEBODY IF THEY'RE GETTING A ONE BEDROOM OR A TWO BEDROOM OR A THREE BEDROOM OR WHATEVER? AND I'D LIKE TO SEE MORE OF THAT COME OUT IN SOME OF THE PRESENTATIONS.

YOU SAID SOMETHING ELSE EARLIER, AND I MIGHT HAVE MISQUOTED YOU.

BUT I THOUGHT YOU SAID WE'LL ALWAYS NEED A SUBSIDY TO DOWNTOWN HOUSING DEVELOPMENT.

DOES THAT INCLUDE MARKET RATE DEVELOPMENT?

>> YES.

>> COURAGE: WE'LL ALWAYS NEED TO SUBSIDIZE MARKET RATE DEVELOPMENT?

>> RIGHT NOW WE NEED TO SUBSIDE MARKET RATE DEVELOPMENT IN THE DOWNTOWN CORE.

AND YOU MAY NEED TO SUBSIDIZE IT IN TIER TWO, DEPENDING ON WHERE THE PROPERTY IS.

BUT THE LAND VALUES ARE HIGHER, AS DAVID MENTIONED.

CONSTRUCTION COSTS ARE GOING UP.

SO THE COSTS ARE INCREASING BUT THE RENTS ARE STAYING AT THE SAME.

ANYWHERE FROM $1.71 IN DAVID'S EXAMPLE, OR $2.

>> COURAGE: I HAVE SEEN SOME RENTS SAYING $3,000 A MONTH RENT.

I DON'T KNOW HOW THEY'RE STAYING THE SAME.

>> AS I MENTIONED, THERE WILL ALWAYS -- OF COURSE NOT ALWAYS, I WOULD SAY.

BUT THERE ARE PROJECTS THAT WILL FUNCTION WITHOUT INCENTIVES.

I MENTIONED THE SELLERS AS AN EXAMPLE.

WE'RE AT THE HIGH END OF THE MARKET RIGHT NOW AT THIS MOMENT.

I THINK LIKELY AS WE MOVE FORWARD, AS THE CITY GROWS AND EVOLVES, I DOUBT YOU'LL SEE A SITUATION WHERE IT BECOMES SOMEHOW AFFORDABLE TO LIVE IN THE URBAN CORE.

[01:30:03]

IF YOU LOOK AT CITIES ACROSS AMERICA LOT WILL DEPEND ON WAGES AND WHAT HAPPENS TO PEOPLE'S EARNINGS.

THAT IS THE DETERMINATE OF AFFORDABILITY.

>> COURAGE: WELL THEN IT SOUNDS LIKE WHAT WE'RE SAYING IS WE'RE BUILDING AN URBAN CORE THAT'S GOING TO BE UNATTAINABLE FOR THE AVERAGE PERSON IN SAN ANTONIO TO LIVE IN WHO RIGHT NOW EARNS $58,000 A YEAR INCOME OR SOMETHING LIKE THAT.

IT'S ONLY GOING TO BE FOR THE PEOPLE WHO HAVE THE HIGHEST LEVEL OF INCOMES.

>> I WOULDN'T SAY THAT.

I WILL SAY THE CCHIP IS NOT INTENDED TO BE AN AFFORDABILITY PROGRAM BY ITSELF.

YOU WILL NEED TO DO OTHER THINGS TO BUILD A DOWNTOWN THAT SPEAKS TO IT.

AND THEN YOU HAVE TO ASK YOURSELF THE POLICY QUESTION IS HOW MUCH ARE YOU PREPARED TO INVEST AS TAXPAYERS TOWARDS HAVING IT BE MORE AFFORDABLE.

ARE YOU GOING TO PUT YOUR AFFORDABLE UNITS IN YOUR MOST HIGH-COST DISTRICT? THAT'S A QUESTION.

TAKE IT TO THE TAXPAYERS.

I DON'T THINK THE TAXPAYERS, PROBABLY THE VOTERS ARE READY TO STAND UP FOR THAT.

BUT WHOM AM I TO SAY?

>> COURAGE: NO, I WOULD AGREE WITH WHAT YOU'RE SAYING THERE.

WHEN I HEAR WE'RE ALWAYS GOING TO HAVE TO SUBSIDIZE DOWNTOWN HOUSING, I WOULD IMAGINE THAT PEOPLE CAN BUILD AT MARKET RATE AND CHARGE WHAT THEY WANT AND SOME PEOPLE ARE GOING TO BE WILLING AND ABLE TO MOVE IN AND LIVE THERE.

WE SHOULDN'T HAVE TO SUBSIDIZE EVERYTHING.

BUT I'M NOT SAYING THIS TO SAY THAT I DISAGREE WITH THE EXTENSION OF WHAT'S BEING PROPOSED TODAY FOR TWO MORE YEARS FOR US TO DO AN ADDITIONAL EVALUATION IN GREATER DETAIL ON WHAT ARE THE RESULTS WE'VE BEEN GETTING FROM WHAT WE'VE ALREADY INCENTIVIZED AND ALSO LET US SEE TWO YEARS FROM NOW, HOW HOT IS THAT MARKET? HOW MANY PEOPLE ARE WILLING TO GO IN AND BUILD JUST AT MARKET RATE BASED UPON THE COST OF CONSTRUCTION, THE COST OF LAND, AND BASED ON HOW MUCH PEOPLE MAY BE WILLING TO PAY FOR MARKET RATE WITHOUT SUBSIDIES.

AND I THINK WE NEED TO EVALUATE HOW MUCH ARE WE WILLING TO INCENTIVIZE TO MAKE AFFORDABLE HOUSING AVAILABLE IN THE INNER CITY CORE.

AND I THINK IT KIND OF GOES ALONG A LITTLE BIT WITH WHAT MY FELLOW COUNCILMAN MR. SALDANA WAS SAYING, MAYBE WE DON'T NEED TO DO ANYTHING IN TIER TWO.

MAYBE WE JUST FOCUS ON TIER ONE OR MAYBE WE PUT MORE INCENTIVES INTO TIER TWO, WHICH IS A LITTLE CHEAPER AND THAT MAY BE WHERE WE DON'T BOTHER INCENTIVIZING TIER ONE ANYMORE.

WE JUST INCENTIVIZE TIER TWO, BECAUSE THE LAND ISN'T QUITE EXPENSIVE OR SOME OF THOSE OUTLYING AREAS.

TWO YEARS FROM NOW WE MAY HAVE A BETTER VIEW OF THAT.

ON PAGE 12 YOU TALKED ABOUT THE REPORT BY MR. NIVIN, I BELIEVE IT WAS.

AND ONE THING IT SAID WAS CCHIP ADDS OVER 8,000 JOBS TO THE SAN ANTONIO MARKET.

IT SEEMED ODD TO ME.

I CAN UNDERSTAND 8,000 PEOPLE COMING TO MOVE THERE BUT I CAN'T UNDERSTAND IT MEANS 8,000 PEOPLE COMING FROM ANOTHER CITY TO COME LIVE HERE.

I'M JUST SAYING WHAT I'D LIKE TO GET A COPY OF MR. NIVIN'S IMPACT REPORT SO I CAN UNDERSTAND IT A LITTLE BIT MORE MYSELF.

I WOULD APPRECIATE IT IF YOU COULD PUT THAT OUT.

ON PAGE 20 YOU MENTIONED INFRASTRUCTURE GRANT.

IN OTHER WORDS, IT'S A GRANT.

IT'S A GIFT.

IT DOESN'T HAVE TO BE REPAID.

AND IT WAS FOR PROJECT-RELATED INFRASTRUCTURE IMPROVEMENTS.

NOW, IF THESE PROJECTS ARE IN A TIRZ, AREN'T THEY ALREADY GOING TO GET INFRASTRUCTURE IMPROVEMENTS? WHY WOULD WE BE GIVING THEM ANOTHER GRANT FOR INFRASTRUCTURE IMPROVEMENTS?

>> THERE IS NO TIRZ MONEY, AS PART OF THIS POLICY.

AND SO WHAT WE'RE SAYING IS IF YOU'RE BUILDING A PROJECT IN TIER ONE AND THAT HAS AFFORDABILITY IN IT, YOU WOULD GET A CERTAIN AMOUNT OF FUNDING TO HELP WITH INFRASTRUCTURE FOR THAT PROJECT.

>> COURAGE: SO NONE OF THESE PROJECTS CAN APPLY FOR TIRZ FUNDING?

>> THEY COULD.

>> COURAGE: BUT THEN YOU WOULD BE PAYING TWO TIMES FOR INFRASTRUCTURE.

>> BUT THIS IS ONLY APPLYING TO THE AS OF RIGHT POLICY.

IF IT WERE TO GO FORWARD TO THE TIRZ MONEY AS WELL, THAT WOULD HAVE TO GO TO CITY COUNCIL AND WE WOULD LOOK AT THAT PROJECT.

>> COURAGE: SO WE MIGHT SAY, WELL, WE'RE GOING TO GIVE THEM GRANT MONEY FOR INFRASTRUCTURE AT X AMOUNT OF DOLLARS, SO WE MIGHT DECIDE THEY DON'T NEED TIRZ MONEY.

>> CORRECT.

>> COURAGE: OR MAYBE THE TIRZ BOARD WOULD SAY THEY DON'T NEED AS MUCH.

WE'LL GIVE THEM A SMALLER AMOUNT.

I WANT TO MAKE SURE WE'RE NOT DOUBLE-DIPPING IN AN AREA, ESPECIALLY WHEN YOU TALK ABOUT A GRANT THAT DOESN'T HAVE TO BE PAID BACK.

YOU KNOW, ON PAGE 23 WHEN YOU WERE TALKING ABOUT THESE UNITS AND THE COST TO GET TO A YIELD OF 7%, YOU KNOW, YOU'RE USING

[01:35:05]

TIER ONE PROJECTS AND TIER TWO PROJECTS AT 275 UNITS, ARE THOSE THE AVERAGES OF WHAT HAS BEEN BUILT IN THOSE TIERS?

>> NO, A PROJECT SIZE OF MAYBE TWO ACRES IN TIER ONE AND MAYBE A LITTLE LARGER IN TIER TWO WITH A GARAGE.

>> COURAGE: WHAT IS THE AVERAGE SIZE OF THESE UNITS THAT ARE BEING BUILT?

>> IT VARIES.

ANYWHERE FROM IT COULD BE 500 SQUARE FEET TO 1200 SQUARE FEET.

AND THEN WITHIN THESE IS AN APPROPRIATE ONE BEDROOM, TWO BEDROOM, THREE BEDROOM, OR STUDIO.

>> COURAGE: YOU GAVE AN EXAMPLE OF ONE THAT HAD 200 UNITS AND IT WOULD COST $2.5 MILLION.

IF WE WERE TALKING ABOUT 100-UNIT COMPLEX IT MIGHT ONLY COST US A MILLION DOLLARS MORE TO INCENTIVIZE THOSE TO GET THEM TO 60% AMI INSTEAD OF 80% AMI.

>> WE WERE REFERRING TO THE BROADWAY JONES PROJECT.

SO 280 UNITS, IT WAS ALREADY RECEIVING CCHIP INCENTIVES SUCH AS A SAWS FEE WAIVER, CITY WAIVER, TIRZ GRANT, AS WELL AS A 100% TAX EXEMPTION.

WE WERE SAYING ON TOP OF ALL THOSE INCENTIVES YOU NEED TO PAY AN ADDITIONAL $2.5 MILLION TO JUST GET 10%.

>> COURAGE: I GUESS I MISHEARD YOU.

I THOUGHT IT WAS 200 UNITS, BUT IT'S 280 UNITS, SO IT'S AS LARGE AS THESE.

I UNDERSTAND THAT.

BUT THE AVERAGE OF MANY OF THESE, OR IF IT'S A SMALLER UNIT IT WILL TAKE LESS TO BUY THAT DOWN.

AND WHERE IT'S LIKELY TO GET 100-UNIT COMPLEXES AS WE ARE TO GET 325 IN SOME OF THESE PLACES.

WHAT I'M GETTING TO IS MAYBE IT IS WORTH THE INVESTMENT OF AN EXTRA $1 MILLION IN INCENTIVES.

THE INCENTIVE IS WHERE DOES THAT MONEY COME FROM? AND THAT'S WHERE PUTTING ASIDE 25% OF THE TAX INCREMENT INTO A FUND THAT CAN HELP SUBSIDIZE THAT LATER ON.

AND I THINK WE'RE GOING TO BE LOOKING AT OTHER WAYS OF HAVING ADDITIONAL FUNDS AVAILABLE TO INCENTIVIZE SOME OF THESE SO WE CAN BUY IT DOWN AS PART OF, YOU KNOW, WHAT WE LIKE TO DO IN THE FUTURE.

HOPEFULLY WE'LL BE ABLE TO DO SOME OF THAT.

I GUESS I'LL GO AHEAD AND STOP THERE.

I THINK YOU'VE ANSWERED MOST OF THE QUESTIONS.

THANK YOU.

>> THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE.

COUNCILMAN PELAEZ.

>> PELAEZ: LORI, GREAT JOB, AS ALWAYS.

THIS IS IMPRESSIVE WORK.

REALLY, I DON'T HAVE MUCH TO SAY OTHER THAN A QUESTION.

MY UNDERSTANDING IS THAT FIRE DEPARTMENT OR CPS REQUIRE LINES TO BE BURIED FOR CERTAIN PROJECTS BECAUSE OF EITHER PROXIMITY TO OTHER BUILDINGS OR PROXIMITY TO OTHER LINES.

AND TIER TWO PROJECTS AREN'T GETTING INFRASTRUCTURE GRANTS.

AND SO WOULD INFRASTRUCTURE GRANTS PAY FOR THAT KIND OF LINE BURIAL?

>> IT COULD.

AND WHAT IT'S IMPORTANT TO NOTE THAT TIER TWO WOULD NOT BE ELIGIBLE FOR THE INFRASTRUCTURE GRANT.

OFTENTIMES WE GO TO A TIRZ TO REQUEST INFRASTRUCTURE DOLLARS, AND THAT GOES TO CITY COUNCIL.

AND SO THIS IS -- WE RECEIVE ABOUT $2 MILLION ANNUALLY THROUGH THE ANNUAL BUDGETING PROCESS.

THIS TIRZ GRANT WOULD COME THROUGH THAT POT OF MONEY.

HOWEVER, LIKE YOU'LL SEE AT TOMORROW'S COUNCIL AND THE MUSEUM REACH LOFTS, THERE'S TIRZ DOLLARS GOING TO SUPPORT INFRASTRUCTURE AND OTHER COSTS ASSOCIATED WITH THAT .

IT JUST MEANS IT'S NOT ELIGIBLE FOR THE AS OF RIGHT INCENTIVE.

BUT WE COULD GO LOOK AT OTHER FUNDING SOURCES AND COME TO COUNCIL.

>> PELAEZ: FOR ALL THOSE INFRASTRUCTURE GRANTS, THOSE WOULD COME TO COUNCIL EVERY TIME?

>> IF IT'S NOT PART OF THE CENTER CITY HOUSING.

>> PELAEZ: THEY'RE JUST AS OF RIGHT.

THEY CHECK THE BOX AND THEY GET THE GRANT.

>> YES.

>> PELAEZ: THE OTHER QUESTION I HAVE, AND THIS IS MORE MACRO, IS WE DON'T SET RENT RESTRICTIONS, RIGHT? I MEAN, WE'RE ONLY SETTING THE AMI MIX.

>> OUR POLICY, WE ARE GOING FROT RESTRICTED.

SO YOU HAVE TO MEET A CERTAIN INCOME LEVEL AND THEN WE'RE RESTRICTING IT AT THAT RENT AS WELL YOU WOULD SEE IN A PFC.

>> PELAEZ: OKAY.

THANK YOU, LORI.

THANK YOU, MAYOR.

>> VIAGRAN: THANK YOU.

AND I'M NEXT.

SO I WANT TO SHIFT GEARS RIGHT NOW AND I WANT TO START WITH THE CITY FEE WAIVER PROGRAM.

AND I WANT TO TALK ABOUT HOW I'M EXCITED TO SEE THOSE CHANGES.

AND I REALLY APPRECIATE ALL OF THE INPUT THAT ALL OF THE

[01:40:04]

STAKEHOLDERS CAME IN TO TALK ABOUT THIS, TO REALLY LOOK AT THOSE FOUR CATEGORIES, AFFORDABLE HOUSING, OWNER OCCUPIED REHAB, HISTORIC REHAB, AND LEGACY BUSINESSES.

BECAUSE I THINK THIS IS THE FIRST TIME WE'RE ACTUALLY GOING TO BE REALLY ABLE TO OPEN UP OUR CITY FEE WAIVER PROGRAM OR OUR ICRIP FEE WAIVER PROGRAM TO SMALL BUSINESSES OF SORTS AND REALLY BE ABLE TO LET MEDIUM BUSINESSES TO COME IN.

WE'RE GOING TO FOCUS ON THE LOCAL.

SO I'M REALLY EXCITED ABOUT THAT AND TO SEE WHAT IS GOING TO HAPPEN HERE.

AND I DO APPRECIATE Y'ALL TAKING ALL OF THAT INPUT AND LOOKING AT THAT IT WOULD NOT -- THE TYPE TWO SHORT-TERM RENTALS WOULD NOT BE ELIGIBLE FOR THIS BECAUSE WE WANT TO BE SURE THIS IS PART OF THE PROCESS FOR THOSE OWNER OCCUPIED REHABS.

SO I THINK HOW IT WAS A NEEDS-BASED STRATEGY.

AND I THINK THAT'S IMPORTANT.

I WANT TO COMMEND YOU FOR THAT AND I'M REALLY EXCITED ABOUT THAT AND AS WE MOVE FORWARD WITH OUR CITY FEE WAIVER PROGRAM AND THE GOALS.

MOVING ON TO THE CCHIP, WE KNEW WHEN WE HAD OUR RESOLUTION WITH THE HOUSING TASK FORCE, WE KNEW WE WERE GOING TO HAVE REALLY GOOD POLICY DISCUSSIONS.

AND THIS IS A GOOD POLICY CONVERSATION.

WE KNEW IT WASN'T GOING TO BE EASY AND WE KNEW IT WAS GOING TO TAKE BOLD IDEAS AND DIFFERENT STRATEGIES.

BUT I ALSO WANT TO REMIND EVERYONE, AS WAS MENTIONED, THIS IS OUR FIRST ATTEMPT OR FIRST TIME LOOKING AT THIS SINCE IT WAS FIRST STARTED.

SO I THINK WE'VE HIT A LOT OF GOOD MARKS HERE.

I THINK WE'VE REALLY -- CHANGING THE BOUNDARIES IS EXTREMELY IMPORTANT, BECAUSE WE KNEW WE DIDN'T NEED ALL THAT AREA ANYMORE, BECAUSE THE MARKET HAS BEEN HELPING ITSELF IN THAT AREA.

SO I WANT TO THANK YOU FOR THAT IN TAKING THOSE ISSUES IN AND THAT IT WOULDN'T BE AS OF RIGHT IN SOME AREAS.

BUT THIS IS THE FIRST TIME WE'RE REVIEWING THIS.

SO I THINK THIS IS A GOOD BLUSH AS WE'RE MOVING FORWARD.

SECONDLY, I WOULD NOT BE SUPPORTIVE OF JUST MAKING THIS A ONE YEAR.

I THINK WE DO NEED TWO YEARS.

BECAUSE EVEN IN THE PFC WORLD, LOOKING AT THE FINANCING AND HOW LONG IT CAN TAKE TO GET FINANCING AND THEN HOW LONG IT CAN TAKE TO GET UP AND ALL OF THE CLEARANCES FROM THE CITY THAT PEOPLE NEED TOO, WE HAVE TO LOOK AND BE REFLECTIVE ON OURSELVES.

IT COULD TAKE A WHILE TO GET THINGS GOING.

SO TWO YEARS, I THINK, IS A GOOD WAY TO MEASURE THIS.

AND THE CITY -- I THINK WHAT WOULD BE GOOD IF WE HAD THIS TWO YEARS THAT MAYBE EVERY SIX MONTHS WE COULD HAVE SOMETHING COMING BACK TO ONE OF OUR COUNCIL COMMITTEES OR BACK TO A B SESSION, JUST TO SEE HOW IS IT WORKING.

WHO IS COMING IN FOR AS OF RIGHT? WHO IS COMING IN IN TIER ONE? WHO IS COMING IN IN TIER TWO? SO WE CAN REALLY TAKE A LOOK AT THAT AS A WHOLE COUNCIL TO SEE HOW IS IT WORKING, HOW IS IT NOT WORKING, WHERE DO WE NEED TO TWEAK.

AND I THINK THAT WOULD BE HELPFUL IF YOU COULD REPORT BACK TO THE COUNCIL MEMBERS.

I AM APPRECIATIVE OF THIS WHOLE NEIGHBORHOOD PRESERVATION AND REQUIRING REZONING -- PROJECTS REQUIRING REZONING FROM SINGLE-FAMILY RESIDENTIAL ARE NOT ELIGIBLE.

I THINK THAT HAS BEEN VERY PROBLEMATIC IN THE PAST.

SO I'M GLAD THAT WE'RE CHANGING THAT AS WELL.

AND THEN MOVING FORWARD, YOU KEPT TALKING ABOUT IN THE CENTER CITY AFFORDABLE HOUSING FUND, YOU KEPT SAYING WE LOOKED, WE LOOKED.

WHEN YOU SAY "WE," WHO DID YOU MEAN?

>> COLLECTIVELY THE CENTER CITY DEVELOPMENT OPERATIONS AND SEVERAL OF OUR STAKEHOLDERS.

THE NONPROFIT HOUSING PROVIDERS.

DAVID ADELMAN, WHO HELPED US, AND ULI MEMBERS HELPED US.

SEVERAL STAKEHOLDERS WERE MEETING REGULARLY ON THIS.

AND SO I SAY WE COLLECTIVELY.

I MEAN THE STAKEHOLDERS THAT I MENTIONED EARLIER.

>> VIAGRAN: OKAY.

AND I WAS ASKING JUST WANTING TO KNOW, OUR END GOAL HERE IS WITH THE DENSITY.

AND I THINK WE ARE TRYING TO DO THAT BALANCING ACT RIGHT NOW.

THE TENTH CONVERSATION AND THE SPRAWL CONVERSATION.

BUT IT'S YES PEOPLE COMING IN, BUT IT'S ALSO PEOPLE WHO LIVE HERE NOW WHO ARE GRADUATING FROM HIGH SCHOOL AND ARE GOING TO GRADUATE FROM COLLEGE IN THE NEXT GOING TO STAY AND CREATE THEIR OWN FAMILIES.

SO WHERE ARE THEY GOING TO GO IN THE CITY? AND WE HAVE TO PROVIDE ALL LEVELS OF HOUSING AFFORDABILITY

[01:45:05]

FROM ALL LEVELS.

FROM MARKET RATE TO ALL OF THE AREAS THAT WE NEED FOR HOUSING FOR ALL OF SAN ANTONIO.

SO, YOU KNOW, I THINK IT'S IMPORTANT THAT WE DO MAINTAIN THOSE THAT ARE CURRENTLY LIVING IN THE DOWNTOWN AREA AND WHO ARE IN AFFORDABLE HOUSING AND MULTI-FAMILY UNITS.

I THINK WE NEED TO MAKE SURE THEY CAN DEFINITELY STAY IN THE COMMUNITY AS WELL.

AND I'M GOING TO REITERATE THIS TO YOU, BECAUSE I ALWAYS TALK ABOUT THIS WITH YOU.

I DON'T KNOW WHAT'S HAPPENING STILL WITH THE ROBERT E. LEE HOTEL AND THOSE APARTMENTS THERE.

BUT I KNOW THAT WE NEED TO MAKE SURE THAT THOSE WHO ARE LIVING THERE CAN STAY IN THAT AREA AS WELL.

BECAUSE THEY ARE ONE OF THE LAST GROUPS STANDING IN THE DOWNTOWN AREA.

SO WE WANT TO MAKE SURE THAT THEY'RE A PART OF THE FABRIC OF OUR DOWNTOWN.

SO I WANT TO MAKE SURE THAT WE CAN HAVE SOME ANSWERS FOR OR SAFEGUARDS FOR THAT COMMUNITY THERE.

AND SO THANK YOU FOR ALL THE WORK.

THANK YOU FOR A LOT OF STAKEHOLDERS WHO LIVE IN THE AREA.

I MEAN, ALL THE STAKEHOLDERS WHO WERE A PART OF THE CONVERSATION AND HOW THIS IS GOING TO BE SOMETHING VERY HELPFUL FOR US.

AND IT'S A HELPFUL FIRST STEP IN THIS WHOLE POLICY CONVERSATION WITH OUR HOUSING TASK FORCE.

SO, MAYOR, I WOULD LIKE TO -- I'M LOOKING FORWARD TO SEEING THIS MOVE FORWARD.

THIS IS BY NO MEANS NECESSARILY PERFECT BUT, AGAIN, WE DON'T KNOW WHAT PERFECT WOULD LOOK LIKE, AND I THINK WE'LL HAVE SOME TRIAL AND ERROR HERE.

BUT I THINK WE'RE AT A GOOD POINT.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN VIAGRAN.

COUNCILWOMAN SANDOVAL.

>> SANDOVAL: THANK YOU, MAYOR.

THANK YOU FOR THE PRESENTATION.

I WANT TO ECHO SOME OF THE EARLIER COMMENTS MADE BY THE MAYOR AND COUNCILMAN SALDANA.

WHEN THE PROGRAM WAS DESIGNED ORIGINALLY, YOU WERE HERE BUT I WASN'T HERE.

I THINK WE WERE IN A DIFFERENT PLACE.

THE MARKET WAS CERTAINLY DIFFERENT.

THE HOUSING MARKET ACROSS SAN ANTONIO WAS DIFFERENT.

AND ALSO I THINK AS A POLICY BODY WE WERE DIFFERENT AS WELL.

WE HADN'T APPROVED AN EQUITY BUDGET THE MAYOR'S HOUSING POLICY TASK FORCE STUDY CONDUCTED.

SO I THINK THAT HAS TO REALLY COLOR WHERE WE'RE GOING FORWARD ON THIS POLICY.

AND I KNOW YOU OPENED UP BY TELLING US THAT THIS WASN'T A HOUSING POLICY, THAT THIS WAS AN ECONOMIC DEVELOPMENT POLICY.

AND I THINK, YOU KNOW, IT MAY BE AN ECONOMIC DEVELOPMENT POLICY BUT, NONETHELESS, IT'S ABOUT BUILDING HOUSING, SO WE CAN'T ACT LIKE IT'S NOT A HOUSING POLICY.

I THINK WE SHOULD PROBABLY BE KIND OF FACE THAT HEAD ON.

IT IS A HOUSING POLICY.

WITH THOSE CHANGES IN MIND AND THE CHANGE IN DIRECTION OF THE POLICY OF THE COUNCIL, I DO THINK THE PROPOSAL TODAY IS HEADED IN THE RIGHT DIRECTION.

I'M NOT CONVINCED THAT WE'RE THERE YET WHERE I WOULD LIKE TO SEE IT.

I DO HAVE SOME CONCERNS ABOUT IT STANDING UP TO PUBLIC SCRUTINY, LIKE THE COUNCILMAN SAID, ULTIMATELY THE PUBLIC HAS TO BE OKAY WITH IT TOO.

OR WE HAVE TO BE ABLE TO SELL IT TO THEM AS WELL.

SO I DON'T REALLY FEEL I HAVE THE TOOLS TO DO THAT RIGHT NOW.

I DO HAVE SOME DETAILED QUESTIONS.

I'LL ASK A FEW OF THEM, BUT I HAVE A LOT.

SO I'LL PROBABLY FOLLOW UP ON E-MAIL WITH SOME OF THEM.

AND THERE'S SOME THINGS I DIDN'T SEE SO I WAS HOPING YOU COULD ADDRESS THEM.

BUT I'LL START WITH THERE WAS A STUDY DONE, RIGHT? AND I THINK FOR MONTHS WE WERE TOLD WE'RE NOT GOING TO TALK ABOUT THIS UNTIL THAT STUDY IS COMPLETED.

AND I GUESS I'M SURPRISED THAT THE STUDY AUTHORS AREN'T HERE TO TALK ABOUT IT.

AND I GUESS I FEEL LIKE I'M MISSING A STEP.

THERE WAS AN ASSESSMENT DONE AND NOW WE'RE LOOKING AT THE RECOMMENDATIONS.

BUT WE DIDN'T REALLY SEE THE ASSESSMENT.

>> SO THE ASSESSMENT WAS REALLY STAKEHOLDER INTERVIEWS, LOOKING AT THE PROJECTS THAT WERE COMPLETE TO DATE.

BUT THE RECOMMENDATIONS WERE MADE BY STAFF BASED ON THE ASSESSMENT, BASED ON THE TAX ANALYSIS, AND BASED ON THE ECONOMIC IMPACT STUDY, AND BASED ON STAKEHOLDER FEEDBACK.

SO THE ASSESSMENT DID NOT SPEAK TO RECOMMENDATIONS.

WHAT THE ASSESSMENT SAID WAS YOU NEED TO CONTINUE INCENTING DOWNTOWN HOUSING.

THE CCHIP DOES PROVIDE INCENTIVES TO HELP MEET THAT GAP.

CONSIDER SHRINKING THE BOUNDARIES TO FOCUS MORE IN THE DOWNTOWN AREA.

[01:50:01]

AND SO IT HAD THOSE HIGH-LEVEL RECOMMENDATIONS.

BUT IT DID NOT MAKE RECOMMENDATIONS TO WHAT A NEW POLICY WOULD LOOK LIKE.

>> SANDOVAL: AND THAT'S FINE.

BUT PART OF MY JOB IS SOMETHING THAT WE CALL ACCOUNTABILITY.

SO I WANT TO KNOW HOW CCHIP HAS WORKED, AND THAT'S WHY I WOULD WANT TO SEE THE ASSESSMENT.

SO I SKIMMED THROUGH THE REPORT.

I JUST GOT IT A FEW DAYS AGO.

THANK YOU FOR PROVIDING IT.

BUT THERE ARE SOME THINGS THAT I DIDN'T SEE IN THERE OR IN STEVE NIVIN'S REPORT AS WELL, AND THAT'S SOME OF THE DIRECT IMPACTS OF THE DEVELOPMENT.

WE KNOW THAT APPRAISALS ARE A LOT HIGHER NOW.

AND THERE ARE CONCERNS FROM NEIGHBORHOODS ABOUT THEIR PRICES, THEIR APPRAISAL PRICES BEING DRIVEN UP BY SOME OF THESE TAXPAYER SUBSIDIZED INVESTMENTS.

AND I THINK WE HAVE TO BE COGNIZANT OF THAT AS WE MOVE FORWARD.

I'M NOT SURE WE'RE GOING TO BE ABLE TO MITIGATE IT.

BUT I DON'T THINK WE CAN TURN A BLIND EYE TO THAT IF PEOPLE ARE STRUGGLING TO PAY THAT INCREASE IN PROPERTY TAX AND THEN THEY LOOK AT A PROGRAM LIKE THIS AND IT'S REALLY HARD TO SELL IT WHEN THEY'RE EXPERIENCING THAT.

I HOPE YOU CAN UNDERSTAND THAT'S WHERE WE ARE AS POLICYMAKERS.

A COUPLE OF OTHER THINGS I DIDN'T HEAR IN THE PRESENTATION.

I APOLOGIZE IF I MISSED IT.

BUT DID YOU TALK ABOUT DISPLACEMENT AT ALL?

>> NO.

WE HAVE NOT TALKED ABOUT DISPLACEMENT.

I WANT TO GO BACK TO YOUR OTHER QUESTION OR COMMENT ABOUT THE CCHIP.

WE REMOVED ALL THOSE AREAS THAT WERE LOW TO MEDIUM RESIDENTIAL AND WE'RE ONLY PROVIDING INCENTIVES TO PROPERTIES THAT ARE ZONED APPROPRIATELY FOR THAT HIGH DENSITY.

AND SO WE'RE TALKING ABOUT A 2.6 SQUARE MILE AREA THAT HAS GONE THROUGH A COMMUNITY PLANNING PROCESS, WHETHER IT BE IN THE LONE STAR REGIONAL CENTER PLAN, THE DOWNTOWN REGIONAL CENTER PLAN, OR THE MIDTOWN REGIONAL CENTER PLAN.

SO WE'RE MAKING SURE WE'RE ALIGNING WITH THE LAND USE THAT THE COMMUNITY HAS STATED THEY WANT.

AND SO THERE HAS BEEN A COMMUNITY PROCESS TO HELP PROTECT THE NEIGHBORHOODS.

AND ALSO MAKE SURE THAT WE ARE PLACING DEVELOPMENT WHERE THE NEIGHBORHOODS WANT TO SEE IT.

THE DISPLACEMENT, WE DO NOT HAVE A DISPLACEMENT STUDY AS A PART OF THIS BECAUSE THE CCHIP PROGRAM REALLY ONLY APPLIES TO NEW HOUSING UNITS.

AND SO YOU CANNOT, FOR EXAMPLE, ROBERT E. LEE WOULD NOT BE ELIGIBLE FOR THESE TYPES OF INCENTIVES.

THIS IS FOR NEW PRODUCT ONLINE.

AND SINCE WE ARE LIMITING IT TO AREAS THAT ARE ZONED APPROPRIATELY FOR THIS TYPE OF DEVELOPMENT AND IT'S NOT AVAILABLE TO THOSE PROJECTS THAT ARE ACTUALLY DISPLACING RESIDENTS, WE DO NOT HAVE A DISPLACEMENT STRATEGY.

>> SANDOVAL: SO IT EXPLICITLY SAYS THIS IS NOT AVAILABLE TO AREAS THAT ARE DISPLACING RESIDENTS?

>> IT SAYS YOU MUST BE NEW PRODUCT TO THE MARKET.

SO IT'S TWO OR MORE HOUSING UNITS THAT ARE NEW.

IT'S NOT FOR REHAB OR RESTORATION.

SO, FOR EXAMPLE, I'LL USE THE MAVERICK.

WHEN DAVID ADELMAN REDEVELOPED THE MAVERICK, IT DID HAVE RESIDENTS IN THEM.

HE WORKED CLOSELY WITH EACH OF THOSE RESIDENTS TO HELP THEM WITH A RELOCATION STRATEGY AND THEN REDEVELOP THAT BUILDING.

WE DID NOT PROVIDE INCENTIVES THROUGH THE HOUSING INCENTIVE POLICY FOR THAT PROGRAM.

>> SANDOVAL: OKAY.

I DO AGREE WITH A COUPLE OF THE RECOMMENDATIONS MADE EARLIER THAT I'D LIKE TO SEE BEFORE WE MOVE FORWARD.

AND THAT IS A TARGET GOAL FOR AFFORDABILITY.

AND SOME CREATIVE WAYS OF MEETING THAT, AND ONE OF THOSE WAYS COULD BE EARMARKING THE FUTURE TAX REVENUES FROM THOSE PROPERTIES WHEN THEY BEGIN TO COME IN, IF THAT'S A POSSIBILITY.

I WOULD LIKE TO SEE THAT EXPLORED BEFORE WE MOVE FORWARD.

SO THOSE ARE SOME OF MY QUESTIONS.

AGAIN, I HAVEN'T, IN DETAIL, REVIEWED THE REPORT, BUT I LOOK FORWARD TO DOING THAT.

THANK YOU.

>> SALDANA: THANK YOU, COUNCILWOMAN.

COUNCILMAN BROCKHOUSE.

>> BROCKHOUSE: THANK YOU, SIR.

A LOT OF MY QUESTIONS WERE COVERED, BUT I WANTED TO THANK YOU FOR THE WORK.

I'M TRYING MY BEST TO GET TO A YES ON THIS, BECAUSE I THINK THE DEVELOPMENT ASPECT OF IT AND THE MARKET ECONOMY AND BEING ABLE TO DEVELOP AND BUILD WHERE YOU WANT TO BUILD IS VERY IMPORTANT TO ME.

AND I KNOW I'M IN THE MINORITY WHEN I SAY I'M NOT WORRIED ABOUT THE SPRAWL.

I'M MORE WORRIED ABOUT BUILDING WHERE PEOPLE WANT TO LIVE.

I DON'T THINK THEY WANT TO LIVE IN EIGHT-STORY BUILDINGS DOWNTOWN.

IN THE USAA EXAMPLE, THEY SAID 25%.

THREE QUARTERS OF USAA SAID THEY

[01:55:01]

DON'T WANT TO GO DOWNTOWN.

DON'T HIGHLIGHT THE SMALL PORTION.

THE BIGGER PORTION, THE TRUTH OF THAT CONVERSATION IS THREE QUARTERS DON'T WANT TO COME DOWN HERE TO LIVE NOR WORK.

AND I THINK IT'S A LARGER PERCENTAGE AS WELL.

SO IT'S A VERY SMALL FOCUS GROUP THAT WANTS TO LIVE DOWNTOWN.

AND BUT I THINK I DO BELIEVE -- AND I'VE COME INTO MY POLICY AND THOUGHT THAT THE DOWNTOWN, WE ALL OWN A PIECE OF THAT AND WE HAVE TO BE DOING THE BEST WE CAN TO BUILD THAT.

WE SAW THAT WITH THE ALAMO AND A LOT OF DIFFERENT THINGS.

THAT WE ALL OWN A PIECE OF THAT.

I DON'T THINK THIS IS READY FOR THE FIRST WEEK OF DECEMBER TO COME THROUGH.

THERE SEEMS TO BE A LOT UP IN THE AIR ABOUT THIS.

THAT'S JUST MY OPINION.

YOU KNOW, I THINK MR. ADELMAN SAID SOMETHING THAT IS INTERESTING.

HE SAID WHY WOULD YOU WANT TO STOP SOMETHING THAT IS WORKING? YEAH, BECAUSE IT'S ONLY WORKING FOR ONE PART OF TOWN.

THAT'S WHY I WANT TO STOP IT OR I WANT TO AT LEAST SPREAD THAT OUT.

AND I THINK I'VE BEEN CONSISTENT THAT IT WASN'T SO MUCH ENDING THE INCENTIVES DOWNTOWN AND IT WAS TO PUSH THEM OUT ALL OVER THE PLACE.

WE FINISHED A HOUSING PROJECT, TOTAL OPPOSITION AGAINST IT.

THIS IS THE AFFORDABLE HOUSING DONE BY THE CESAR CHAVEZ FOUNDATION.

THEY ARE THE ONES WHO CAME IN AND PITCHED IT AND IT WAS TOTAL DENIAL.

BUT WE SAT DOWN WITH THESE FOLKS.

WE WORKED OVER THREE MONTHS, MULTIPLE COMMUNITY MEETINGS.

THEY CONCEDED, AND WE'RE GOING TO PUT THAT 240 UNIT COMPLEX ON CULEBRA ROAD.

IT DOESN'T REQUIRE ANY CITY INCENTIVES.

SO THIS WHOLE DRIVE THAT IT HAS TO BE DOWNTOWN, IT'S A FALSE NARRATIVE.

IT CAN GO ANYWHERE IN OUR COMMUNITY, ANYWHERE IN OUR CITY IF LEADERSHIP STANDS UP AND WORKS WITH THE DEVELOPMENT COMMUNITY AND OFFERS THEM AN OPPORTUNITY TO MAKE SOME MONEY.

IT'S NOT THE END OF THE WORLD THAT SOMEBODY MAKES MONEY.

IT'S OKAY, YOU KNOW, AND FOR THEM TO MAXIMIZE THEIR PROFIT, THAT'S THE BUSINESS THEY'RE IN.

WE CAN'T GET THE DEVELOPMENT DONE WITHOUT THEM.

IT CONCERNS ME THIS DRIVE THAT WE DON'T CARE WHAT THE DEVELOPER THINKS.

YOU NEED TO CARE WHAT THEY THINK BECAUSE THEY'RE THE ONES THAT ARE GOING TO DO THE WORK.

SO WE HAVE TO GRAB A HOLD OF AND BE OKAY WITH PEOPLE WANT TO LIVE ELSEWHERE.

YOU KNOW, THE PROBLEM THAT I SEE, AND I KEPT WRITING ALL THESE DIFFERENT VARIATIONS.

WE'RE TRYING TO FIX CCHIP WHILE BUILDING HOMES IN THE MOST EXPENSIVE DIRT IN THE CITY.

YOU'RE TRYING TO CRAM MULTIPLE GENIES BACK IN THE BOTTLE HERE BECAUSE IT DOESN'T WORK.

DOES MR. ADELMAN DESERVE THE OPPORTUNITY TO BUILD UNITS DOWNTOWN? YES, HE DOES.

THERE'S A SEGMENT OF THE COMMUNITY -- AND WE SHOULD SUPPORT THAT GROWTH.

USAA IS COMING DOWN HERE AND THEY WANT THEIR PEOPLE TO LIVE HERE, WE HAVE TO FIND THE RIGHT BALANCE TO GIVE THEM THE INCENTIVES THEY NEED TO BUILD THE UNITS WHILE FOCUSING ON THE LARGER GOAL OF GETTING THIS AFFORDABLE HOUSING ANSWER DONE ACROSS THE CITY.

IT HAS TO HAPPEN ACROSS THE CITY.

SO HERE WE ARE BEATING EACH OTHER UP OVER TRYING TO FORCE IT DOWNTOWN.

THE NUMBERS WILL NEVER WORK.

WE'RE ALWAYS GOING TO BE INCENTIVIZING.

I DO AGREE WITH COUNCILMAN SALDANA WHEN HE SAID $159,000 FOR THAT ARTS BUILDING, THAT'S AN EGREGIOUS NUMBER.

THAT WILL NEVER SELL TO THE PUBLIC EVER.

WE'RE NEVER GOING TO GET THAT SOLD.

BECAUSE IF WE ACTUALLY HAD THAT CONVERSATION WITH THEM AND SHOW THEM WHAT WE'RE DOING, THEY'RE STILL GOING TO SEE IT'S $159,000 PER UNIT.

THEY CONSIDER IT THEIR TAX DOLLARS.

WHILE, TO COUNCILWOMAN SANDOVAL'S POINT, WHILE THEIR TAXES ARE RISING.

THEY'RE PAYING MORE FOR THEIR PROPERTY BUT WE'RE INCENTIVIZING THE GROWTH DOWNTOWN.

THE MAYOR'S HOUSING POLICY TASK FORCE, THEY'RE INVADING EVERYWHERE.

THEY'RE TRYING TO GRAB MONEY FROM EVERYWHERE.

THERE'S TWO SIDES OF THE LEDGER.

IT'S NOT JUST INCENTIVIZING THE HOUSE, IT'S HELPING PEOPLE MAKE MORE MONEY.

IT'S AN ECONOMIC DEVELOPMENT TOOL.

WE'RE GETTING AWAY FROM IT BEING AN ECONOMIC DEVELOPMENT TOOL AND TURNING CCHIP INTO A SOCIAL JUSTICE TOOL .

I THINK THAT'S WHERE WE START THE RUB WITH WE CAN'T MAKE THE TWO WORK UNLESS WE KICK IN THOSE HEAVY INCENTIVES THAT WON'T SELL TO THE COMMUNITY.

IT'S LIKE THE ONE WE DID LAST WEEK WHEN IT HAD NO UNITS FOR FAMILIES.

I MEAN, I RAISED MY HAND.

I'M SORRY.

IT'S ONLY FOR ONE BEDROOMS? WHAT ABOUT A FAMILY THAT WANTED TO LIVE THERE? WELL, THEY CAN'T.

I REMEMBER, BECAUSE IT STUCK WITH ME.

THAT DEVELOPER SAID THIS IS GOING TO BE THE FINEST BUILDING IN DOWNTOWN THAT A FAMILY CAN'T LIVE IN.

THAT THE AVERAGE SAN ANTONIO FAMILY CAN'T LIVE IN.

IT'S A TOUGH BALANCE YOU'RE TRYING TO FIND HERE, AND I'M VERY RESPECTFUL OF YOUR PRESENTATION AND WHAT YOU'RE TRYING TO ACCOMPLISH.

I'M 100% TRYING TO GET THERE TO MAKE SURE THAT WE DO WHAT WE HAVE TO DO FOR DOWNTOWN, BECAUSE IT DESERVES IT.

I'VE GROWN INTO THAT THAT IT

[02:00:02]

DESERVES -- ALL OF A SUDDEN ALL OF US HAVE A CHUNK OF THIS.

BUT ALL OF US NEED A LITTLE BIT MORE OF THIS.

I THINK WE'RE SO TUNNEL VISION ON THIS AFFORDABLE HOUSING CONVERSATION THAT WE'RE MAKING POLICY DECISIONS WHEN WE HAVEN'T LOOKED AT THE WHOLE.

A DOLLAR IS A DOLLAR ANYWHERE ON THE POTENTIAL HOMEOWNER'S LEDGER.

WHETHER IT'S A CHEAPER HOUSE, MORE INCOME OR INCENTIVES TO THE DEVELOPER.

EVERY ONE OF THEM SOLVES THE AFFORDABLE HOUSING CONVERSATION.

BUT YET WE ONLY TALK ABOUT FORKING MORE CASH OUT IN AREAS, FRANKLY, WHERE, YOU KNOW -- THE AFFORDABLE HOUSING PERSON OR WORKFORCE HOUSING, WHATEVER WE'RE CALLING IT NOWADAYS, WE HAVEN'T EVEN ANSWERED THE QUESTION DO THEY WANT TO LIVE DOWNTOWN.

AND WHAT SEGMENT IS THAT? I STILL DON'T SEE THAT ANSWERED ANYWHERE IN ANY PRESENTATION.

AND ALL RESPECT TO MR. ADELMAN, HE'S ALL PRO THAT.

THERE'S NOBODY ELSE REPRESENTED HERE TODAY.

IT'S JUST THAT.

SO CAN WE HEAR FROM THE OTHER FOLKS WHO WANT TO BUILD ELSEWHERE THAT THINK BUILDING OUTSIDE OR DOING SOMETHING ON CULEBRA, ON 151 OR OLD HIGHWAY 90 OR DISTRICT 10 -- I JUST THREW THAT ONE OUT THERE FOR CLAYTON, PERRIN BEITEL? COME ON.

WE'RE ONLY HEARING ONE SIDE OF THE FIGHT HERE.

YOU KNOW, I THINK WE CAN GET THERE.

I THINK IT'S A BALANCING ACT.

YOUWE HAVE TO BE CAREFUL AS A POLICY BODY NOT TO GET SO CAUGHT UP THAT THE TASK FORCE RECOMMENDATION IS GOLD AND IT DICTATES OUR LIFE.

WE CAN MAKE CHANGES TO IT.

IT WAS VOTED ON AND WE ACCEPTED IT, THANK YOU.

BUT IT DOESN'T DRIVE US AND THE ABDICATION OF OUR RESPONSIBILITY TO THE TASK FORCE.

WE SHOULD BE MAKING THESE POLICY DECISIONS LIKE WE ARE NOW AND CHEWING THEM UP AND TAKING THEM FOR WHAT THEY ARE, RECOMMENDATIONS.

AND I THINK WE NEED MORE TIME TO CHEW THIS ONE UP.

IT DOESN'T SEEM LIKE IT'S READY.

I'M HERE TO HELP THE DOWNTOWN DEVELOPMENT SET.

I THINK IT NEEDS IT BUT THAT MARKET HAS DRIVEN ITSELF AND IT'S THERE ALREADY.

AND I THINK WE NEED TO REALLY HAVE THE LARGER CONVERSATION PUSHING THIS OUT ELSEWHERE.

AND I'M HOPING THAT WILL HAPPEN.

RIGHT NOW I'M NOT COMPLETELY SUPPORTIVE OF IT BUT I THINK IF WE SPEND MORE TIME FINDING OUT HOW MUCH IS THE RIGHT NUMBER FOR THE DAVID ADELMANS OF THE WORLD AND THOSE DEVELOPERS, WE NEED TO GET THERE TO DO THAT WITH THE MIND SET THAT ENOUGH IS ENOUGH.

WE'VE GOT TO GET OUT AND DO SOME OF THESE AFFORDABLE HOUSING UNITS ELSEWHERE.

I JUST KEEP COMING BACK TO WHY ARE WE OBSESSED WITH BUILDING AFFORDABLE HOUSING ON THE MOST EXPENSIVE DIRT IN THE CITY? THAT CONTINUES TO MAKE NO SENSE TO ME.

I'M APPRECIATIVE OF THE WORK.

YOU AND I WILL HAVE FOLLOW-UP CONVERSATIONS JUST TO MAKE SURE I CAN GET TO A YES.

IT'S A GOOD START BUT WE NEED MORE AND CONTRARIAN VIEWS.

WE NEED THE HABITAT FOR HUMANITIES, THE NRP, I WOULD LIKE TO HEAR FROM THEM.

THE DOWNTOWN HOUSING PIECE, WHICH DOESN'T ALWAYS HAVE TO BE AFFORDABLE.

JUST A THOUGHT.

I APPRECIATE IT.

GOOD WORK AND I LOOK FORWARD TO MORE CONVERSATION.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN BROCKHOUSE.

COUNCILMAN TREVINO.

>> TREVINO: DOWNTOWN ROCKS! LOOK, I'M GOING TO RESPECTFULLY DISAGREE WITH MY COLLEAGUE HERE.

PEOPLE DO WANT TO LIVE DOWNTOWN.

I THINK THAT THE POINT OF THIS IS REALLY THAT THIS IS ABOUT PROVIDING A BALANCE AND PROVIDING CHOICE FOR PEOPLE SO THAT THEY DON'T FEEL LIKE THE AREAS IN WHICH THERE'S AREAS IN THE CITY THAT ARE UNATTAINABLE, ESPECIALLY WHERE WE'RE TRYING TO INVEST A LOT OF OUR FUNDS.

AND SO WHILE HE TALKED ABOUT, YOU KNOW, USING THIS PROGRAM TO CREATE STRATEGIES AS A SOCIAL PROGRAM, I MEAN, I THINK THERE'S WAYS TO USE OUR PROGRAMS TO THINK ABOUT HOW YOU LAYER THESE TO HELP OVERALL IN OUR CITY.

LET'S THINK ABOUT THIS.

OVERALL, WHAT IS THE BIG MESSAGE HERE? THE BIG MESSAGE HERE IS THAT THINGS COST WHAT THEY COST AND IF WE WANT TO MAKE THEM AFFORDABLE WE'VE GOT TO FIND STRATEGIES TO HELP REDUCE SOME OF THOSE COSTS.

AND, YOU KNOW, THERE'S A LOT OF THINGS TO CONSIDER.

LAND IS ONE OF THEM, AND THAT'S CRITICAL.

YOU KNOW, ANOTHER THING THAT'S CRITICAL, THOUGH, IS TO TRY TO BE INNOVATIVE IN OUR APPROACH AND TO TRY TO UNDERSTAND HOW WE CAN WORK WITH THE COMMUNITY.

[02:05:02]

HOW WE CAN WORK WITH DEVELOPERS.

ONE EXAMPLE THAT I WANT TO LAY OUT, AND WE'VE BEEN WORKING ON THAT I THINK IS ONE SHINING EXAMPLE AND IT'S GOING TO BE A GREAT APPROACH IS WE'RE WORKING ON WITH FRANK PACHESKY NORTH OF DOWNTOWN ON A DEVELOPMENT WHERE INFRASTRUCTURE CAN BE COST PROHIBITIVE.

IF YOU'RE DEVELOPING SOMETHING, ESPECIALLY IN THE OLDEST PART OF THE CITY, AND WHEN YOU'RE DOWN AT THE CORE YOU HAVE THE OLDEST INFRASTRUCTURE.

YOU HAVE SOME EXPENSES YOU HAVE TO MAKE.

BUT IF WE WORK WITH DEVELOPERS TO FIND A WAY TO MAKE THOSE EXPENSES MORE AFFORDABLE, THEN DO YOU SEE THAT THE SAME AS A SUBSIDY? OR IS THAT JUST A SMART APPROACH? AND I THINK THAT'S A SMART APPROACH.

IT'S KIND OF DOING THE SAME THING.

BECAUSE WHAT WE'RE SAYING IS WE'RE TRYING TO OFFSET SOME OF THESE HIGHER COSTS.

WE, AS A CITY, DON'T DO A GOOD JOB OF BUILDING SIDEWALKS.

WE SPEND WAY TOO MUCH MONEY.

AND MOST DEVELOPERS WILL TELL YOU THEY COULD DO IT A LOT CHEAPER.

SO WORKING IN THAT FRAMEWORK, I THINK WE CAN TACKLE A LOT OF THESE ISSUES IN A SMART WAY.

YOU KNOW, I THINK DAVID ADELMAN DID SAY SOMETHING THAT WAS RIGHT ON TARGET WHICH IS, LOOK, THESE ARE GOING TO HAPPEN IF THEY'RE GOING TO HAPPEN.

PEOPLE AREN'T GOING TO WAIT AROUND.

TIME IS TIME AND WHEN YOU'RE SOMEBODY THAT IS TRYING TO INVEST AND BUILD, TIME IS YOUR MAJOR COMPONENT.

AND HAVING TO WAIT FOR SOMETHING OR HAVING THE UNCERTAINTY IS NOT GOING TO HELP DRIVE ANYTHING.

LORI, THANK YOU.

WE NEED TO MOVE THIS FORWARD.

WE NEED TO CONTINUE THESE POLICIES.

IT'S NOT PERFECT BUT WE'RE DOING SOMETHING AND WE MUST DO SOMETHING TO HELP ADDRESS THIS.

AND WE MUST LOOK AT WAYS TO TRY TO MEET THAT GAP AND TRY TO WORK IN A PROFESSIONAL AND SMART WAY THAT ACTUALLY DOES LOWER THOSE COSTS.

IT'S AS SIMPLE AS THAT.

AND I THINK WE'RE PROVING THAT WITH THIS ONE PROJECT.

WE RECENTLY MET WITH FRANK AND ANTHONY WITH TCI TO DEMONSTRATE THAT THERE'S SOME SERIOUS COST SAVINGS WHEN A PRIVATE DEVELOPER COMES IN AND HANDLES WHAT WOULD HAVE OTHERWISE HAVE COST A LOT MORE.

I THINK THAT'S A SMART APPROACH.

AND, LOOK, I THINK THAT THIS IS NOT AN EASY ISSUE AND THERE'S NO ONE SINGLE ANSWER.

AND THIS PARTICULAR POLICY, INCENTIVE POLICY AS STATED, IS NOT NECESSARILY AN AFFORDABLE HOUSING STRATEGY.

BUT IT CAN BE A PART OF AN AFFORDABLE OPPORTUNITY.

AND SO I THINK IT'S DOING THAT.

I THINK IT'S STARTING TO DO THAT.

I THINK WE NEED TO START THINKING ABOUT HOW WE CAN WORK TO PRESCRIBE SMARTER APPROACHES TO HOW WE BUILD OUT OUR CITY.

WHEN WE DON'T THINK ABOUT THOSE THINGS, THAT'S WHEN PRICES ESCALATE.

THAT'S WHEN WE'RE HAVING TO LOOK AT A LOT OF THESE INCENTIVE POLICIES AS AN OFFSET.

IN FACT, THERE'S WAYS THAT WE CAN FORM PARTNERSHIPS THAT REALLY TRULY REDUCE A LOT OF THIS COST.

SO I'M GOING TO ADVOCATE FOR THAT.

I'M GOING TO ASK MY COLLEAGUES TO ASK ME ABOUT THIS INCREDIBLE PROJECT THAT'S DEMONSTRATING HOW YOU BUILD IN A SMART WAY AND TAKE ON AN APPROACH THAT REALLY SHOWS HOW I THINK THE OVERARCHING THEM ABOUT ALL THIS IS THAT, LOOK, WE'RE ALL TALKING ABOUT IT.

WE'RE TALKING ABOUT AFFORDABILITY IN OUR CITY.

WE'RE TALKING ABOUT THAT OPPORTUNITY TO PROVIDE EQUAL CHOICE FOR EVERYONE WHO, FROM THE WORKFORCE TO, YOU KNOW, THE NEW YOUNG PROFESSIONAL THAT WANTS TO MOVE DOWNTOWN, OR EVEN IN DISTRICT 6.

I THINK THEY PREFER DOWNTOWN.

[LAUGHTER] I WOULD SAY THAT THE POINT IS WE'RE TALKING ABOUT IT.

AND SO IN TALKING ABOUT IT ARE WE GOING TO WORK TOGETHER ON IT, RIGHT? AND ARE WE GOING TO LISTEN TO HOW THINGS ARE MADE AND WHY THEY COST WHAT THEY COST?

[02:10:02]

IT'S AS SIMPLE AS THAT.

THINGS COST WHAT THEY COST.

I GAVE A REPORTER THE OTHER DAY AN EXAMPLE OF A CHINESE-MADE FENDER STRATOCASTER, WELL, NOW IT'S MEXICO MADE.

ONE IS $1500 AND THE OTHER ONE IS ABOUT $150.

ARE THEY BOTH ELECTRIC GUITARS? ABSOLUTELY.

BUT THERE'S A DIFFERENCE.

AND IF YOU UNDERSTAND THAT THERE'S COMPLEXITY IN BUILDING A GUITAR, YOU GOT TO BELIEVE THAT THERE'S REAL COMPLEXITY IN MAKING BUILDINGS AND DEVELOPING LAND.

BUT THERE'S ALSO THAT OPPORTUNITY TO FIND HOW TO FINE TUNE THAT AND HOW YOU CAN WORK TOGETHER TO REDUCE SOME OF THOSE COSTS.

I DO THINK THAT WE NEED TO WORK WITH OUR NEIGHBORHOODS TO MAKE SURE, YOU KNOW, SOME OF THE OTHER TOOLS THAT I WANT TO TALK ABOUT IS THAT I DO BELIEVE THAT THERE'S A MISSING MIDDLE.

WHEN IT COMES TO DENSITIES, FOR EXAMPLE, WE HAVE BEEN TALKING A LOT ABOUT THIS, NOT IN RELATION NECESSARILY TO THIS, BUT JUST IN TERMS OF DENSITY AND THE IDEA THAT WE HAVE TO THINK ABOUT, YOU KNOW, HOW MF-25 CAN WORK IN SOME OF THESE NEIGHBORHOODS AND HOW IT CAN BE INCORPORATED AS PART OF THIS PROGRAM AND WHAT DOES THAT MEAN TO HOW WE EXPAND THE BOUNDARIES OF DEVELOPMENT.

I DO BELIEVE THAT YOU CAN HAVE A SMART APPROACH ABOUT INVESTING IN THE NEAR DOWNTOWN AND FINDING WAYS TO SAY, LOOK, ON THIS SIDE OF THE HIGHWAY THE LAND IS ONE PRICE AND ON THE OTHER SIDE OF THE HIGHWAY THE LAND IS A TOTALLY DIFFERENT PRICE.

I CAN AGREE WITH THAT.

BUT I ALSO AGREE THAT DOWNTOWN NEEDS THIS KIND OF HELP AND IT'S GOT AGING INFRASTRUCTURE THAT IS A KEY PART OF HOW ANYBODY HAS TO FACE THE EXISTING CONDITIONS OF ANY KIND OF DEVELOPMENT YOU WANT TO TALK ABOUT.

IT'S JUST PART OF IT.

AND THEN, OF COURSE, JUST ADD TO THE TOOLS AS DEMONSTRATED BY ALAMO AND GETTING THOSE STATE TAX CREDITS.

I MEAN, THEY'RE REALLY DEMONSTRATING SOME GREAT POLICY APPROACHES.

THE POINT IS IT'S ALL AUDIO] TO GET US THERE.

TO GET US TO WE'RE NOT JUST CREATING OVEREXPENDITURES IN A WAY -- OR CREATING OVEREXPENDITURES THAT DRIVE THESE PRICES UP FOR THE FACT THAT WE'RE NOT SIMPLY WORKING TOGETHER ON THIS.

WE'RE NOT COMMUNICATING BETWEEN THE CITY AND PRIVATE DEVELOPMENT.

WE'RE NOT TALKING ABOUT A SMARTER APPROACH.

WE'RE NOT BUILDING A BETTER SIDEWALK.

TO ME, IT'S AS SIMPLE AS THAT.

AND AT THE HEART OF THIS IS TIME.

TIME IS THE CHALLENGE.

WE'VE ALREADY PAUSED FOR A YEAR AND IT HAS BEEN DEMONSTRATED NOTHING HAS OCCURRED.

AND NOTHING IS GOING TO CONTINUE TO OCCUR IF WE PAUSE TOO MUCH.

SO I THINK WE NEED TO MOVE FORWARD ON THINGS.

WE NEED TO BE FLEXIBLE.

I HOPE THAT WE CAN TAKE A DEEP DIVE IN TERMS OF INNOVATIVE CONSTRUCTION METHODS, INNOVATIVE PARTNERSHIPS THAT CAN HELP US DRIVE SOME OF THESE COSTS DOWN.

AND THEREFORE THEY'RE NOT EVEN SEEN, IN MANY WAYS, AS AN EXAMPLE FOR THE PROJECT THAT I JUST MENTIONED EARLIER, IT'S NOT SEEN AS AN INCENTIVE.

THAT'S JUST SEEN AS A SMART APPROACH.

IT'S DOING THE SAME.

IT'S OFFSETTING IN A SIMILAR WAY THAT AN INCENTIVE WOULD.

BUT FOR THE FACT THAT THIS PARTICULAR PERSON KNOWS HOW TO DO IT CHEAPER.

MORE EFFICIENT.

AND I THINK THAT'S A CRITICAL POINT TO MAKE IN TERMS OF WHAT THE STRATEGY MEANS AND NO ONE SILVER BULLET IS GOING TO SOLVE IT.

WE HEARD FROM THE PFC.

WE HEARD FROM THE OTHER PROGRAMS THAT CAN LAYER ON TOP OF THIS.

BUT I HOPE THAT WE CAN CONTINUE TALKING ABOUT THIS POLICY THAT I THINK HAS ACTUALLY SERVED US PRETTY WELL.

THANK YOU, MAYOR.

THANKS, LORI.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN TREVINO.

COUNCILWOMAN GONZALES.

>> GONZALES: I JUST HAD ONEOR.

QUESTION, LORI.

THANK YOU FOR THE PRESENTATION.

I KNOW THIS HAS BEEN A LOT OF WORK FOR YOU AND ALL THE PARTNERS, AND MAYBE IT'S A QUESTION THAT ALSO A COMMENT.

SO THE ONE THING I STILL HAVE NOT QUITE BEEN ABLE TO

[02:15:01]

ACCEPT IS THE AFFORDABLE HOUSING COMPONENT THAT IS CITYWIDE.

SO CAN YOU EXPLAIN THE NEED FOR AFFORDABLE HOUSING INCENTIVE CITYWIDE.

>> HOUSTON: ARE JEW -- YOU REFERRING TO THE AFFORDABLE HOUSING CITY FUND AND WHY WE'RE OPENING THAT OUT?

>> GONZALES: YES.

>> HOUSTON: THE REASON YOU CAN SUBSY DICE MORE AFFORDABLE HOUSING OUTSIDE THE CITY AREA VERSUS INSIDE THE CITY AREA.

WE KNOW A HOUSING UNIT AT 60% AMI OR BELOW OUTSIDE OF THE DOWNTOWN AREA, TO MAKE THAT WORK YOU NEED A SUBSIDY OF 350700.

IF THAT PROJECT WERE TO BE REQUIRED IN THE DOWNTOWN AREA, THAT IS DOUBLE.

SO YOU CAN ALMOST DO TWICE AS MANY HOUSING UNITS THAT ARE AFFORDABLE OUTSIDE THE DOWNTOWN AREA VERSUS INSIDE THE DOWNTOWN AREA.

SO THE THOUGHT OF BEING ABLE TO HAVE THAT FLEXIBILITY, TO PROVIDE MORE AFFORDABLE HOUSING IN AREAS NOT JUST FOCUSED IN THE DOWNTOWN.

>> GONZALES: SO -- BUT I MEAN, YOU'RE TALKING ABOUT ANYWHERE IN THE CITY THAT COULD BE OUT 1604, SO MY CONCERN IS THAT WOULD PROMOTE SPRAWL.

>> HOUSTON: UH-HUH.

>> GONZALES: IS THERE -- I MEAN, SA TOMORROW ENCOURAGES THE FOCUS WITHIN 410, SO WHY THEN INCENTIVE PROJECTS OUTSIDE.

>> HOUSTON: THE FEEDBACK WE HEARD FROM OTHER COUNCILMEMBERS AND THE COMMUNITY WAS TO KEEP IT FLEXIBLE.

WE COULD LOOK AT THAT, BUT THE THOUGHT WAS NOT JUST LIMIT IT TO DOWNTOWN BECAUSE IT'S MORE EXPENSIVE TO SUBSIDIZE HOUSING DOWNTOWN.

>> GONZALES: SO, I WOULD HOPE THAT WE COULD AT LEAST LIMIT THAT EVEN WITHIN 410, BECAUSE I UNDERSTAND THE NEED FOR AFFORDABLE HOUSING CITYWIDE.

IN FACT, I THINK IT WAS MY COLLEAGUE, OR COUNCILMAN PELAEZ THAT SAID -- DO YOU GET NERVOUS? ALL OF A SUDDEN I CALLED YOUR NAME, YOU COULDN'T EVEN BUY A HOUSE IN HIS DISTRICT FOR LESS THAN 250,000.

THAT THERE WAS NOT EVEN A HOUSE FOR SALE, A SINGLE-FAMILY HOUSE FOR SALE IN THAT DISTRICT.

SO I DON'T KNOW IF THAT WAS JUST FOR -- IF THAT WAS ANECDOTAL, BUT IF THAT'S, IN FACT, TRUE, THEN YOU CAN'T EVEN BUY A HOME.

AND SO THAT WOULD EXPLAIN THE NEED FOR AFFORDABLE HOUSING IN OTHER PARTS OF THE CITY.

IT JUST SEEMS LIKE WE COULD FOCUS OUR ATTENTION AT LEAST WITHIN 410.

YOU KNOW, THAT'S ONE OF MY COMMENTS.

AND I GUESS JUST SOME FINAL THOUGHTS ABOUT HOW -- YOU KNOW, WE -- THE PROJECTS AND HOW WE'VE TRIED TO MOVE THEM ALONG, AND SOME DESIRE TO KEEP THEM MOVING, I'VE BEEN NOW ON THE COUNCIL FOR SIX YEARS, NOW ONE OF THE MORE TENURED MEMBERS OF THE COUNCIL, AND I'VE HAD EXACTLY TWO PROJECTS STARTED AND COMPLETED DURING MY TERM.

AND THOSE HAVE BEEN BOTH MARKET-RATE PROJECTS, BIG TAX AND SOUTHTOWN, AND THAT'S IT.

AND SO AS WE ARE TALKING ABOUT, YOU KNOW, GETTING HOUSING, WHETHER IT'S MARKET RATE, WHETHER IT'S AFFORDABLE, WHETHER IT'S HONOR SLACK OCCUPIED REHAB, YOU KNOW, ALL OF THESE THINGS THAT WE ARE WORKING ON, THEY HAVE BEEN COMING ALONG VERY SLOWLY, AND THAT'S -- FOR A VARIETY OF REASONS, NOT THAT IT'S -- THE CITY'S AT FAULT, THERE'S A VARIETY OF REASONS WHY THAT'S HAPPENED, BUT I DO THINK IT'S IMPORTANT AS -- YOU KNOW, AS A CITY, AS WE'RE TRYING TO MOVE ALONG, THAT'S NOT GOOD NEWS FOR PEOPLE WANTING TO MOVE TO MY DISTRICT, WANTING TO MOVE TO MY NEIGHBORHOOD.

THERE'S STILL NOWHERE TO GO.

IF YOU WANT TO BE CLOSER TO THE CORE BUT NOT NECESSARILY DOWNTOWN, AND THERE'S A LOT OF OTHER REASONS WHY PEOPLE MAY NOT WANT TO LIVE HERE, BUT THE FACT THAT WE DON'T HAVE PROJECTS IS A PROBLEM.

AND I JUST -- I ALSO THINK THAT IT'S IMPORTANT TO NOTE AS WE'RE -- WE CONTINUE ■TO TALK ABOUT THE GROWTH, IS THAT STILL, THE MAJORITY OF THAT GROWTH IS HOME GROWN.

THAT'S PEOPLE LIKE REY SALDAÑA AND ME HAVING MORE BABIES.

IT'S INTERNAL -- [LAUGHTER]

>> GONZALES: I STILL GOT YOU FOR A COUPLE, BUT THAT'S THE REALITY.

AND THAT THE MAJORITY OF THOSE PEOPLE WILL BE WORKING CLASS AND LOW INCOME.

AND SO, YOU KNOW, I THINK THERE'S THIS IMPRESSION, AND WE SAY THIS A LOT, BUT THERE'S THIS MASS OF PEOPLE COMING.

THEY'RE NOT COMING.

WE'RE ALREADY HERE.

IT'S US HAVING BABIES, LATINOS AND MOSTLY LOW INCOME.

SO WE NEED TO FOCUS OUR STRATEGY IN THAT REGARD, NOT DESIGNING FOR PEOPLE THAT ARE MOVING IN, BUT FOR US OUR OURSELVES, AND SO THAT'S WHY I THINK WE SHOULD KEEP THE FOCUS, AT LEAST ON THE

[02:20:02]

URBAN CORE.

AND THE REASON FOR THAT IS THE MOST SUSTAINABLE, THE MOST AFFORDABLE WAY TO LIVE IS TO BE COMPACT, TO INVEST IN OUR EXISTING INFRASTRUCK CHEURKS WE DON'T HAVE TO ADD FIRE STATIONS AND POLICE AND ALL THOSE THINGS.

I LOOK FORWARD TO US MOVING ALONG, AND MOVING ALONG SORT OF QUICKLY SO WE CAN GET MORE OF THESE PROJECTS ONLINE AND MOVING AND PEOPLE MOVING INTO THEM, BECAUSE AT THIS RATE, KNOWING MY CHILD OR REY SALDAÑA IS GOING TO HAVE A PLACE TO LIVE IF WE DON'T GET THESE PROJECTS MOVING ALONG.

SO THANK YOU.

>> MAYOR NIRENBERG: THANK YOU COUNCILWOMAN GONZALES.

COUNCILMAN SALDAÑA.

>> SALDAÑA: THANK YOU, MAYOR.

LORI, YOU'VE BEEN STANDERRING UP THERE A LONG TIME.

HAVE I THANKED YOU?

>> HOUSTON: THANK YOU, YOU JUST DID.

>> SALDAÑA: IF I HAVEN'T, I WILL.

LET ME ASK TWO QUESTIONS BEFORE WE GET THERE.

I'M CONSIDERING WHAT IT LOOKS LIKE TO STEP OUT OF SAN ANTONIO FOR A LITTLE BIT AND SAY CAN WE PREDICT OUR FUTURE BY LOOKING AT ANOTHER CITY.

THE REASON I'M GOING TO ASK THAT YOU GO BACK AND SHARPEN YOUR PENCIL A LITTLE BIT TO TRY TO GET AFFORDABILITY AND GIVE IT A LITTLE BIT OF A LEG UP, IF I LOOK AT A CITY LIKE AUSTIN, WHO PASSED THEIR $225 MILLION HOUSING BOND, AND I ASK MYSELF WHERE ARE THEY GOING TO TRY TO BUILD BECAUSE THEIR HOUSING BOND IS DRIVEN BY TRYING TO GET SOME AFFORDABLE HOUSING.

IT'S NOT GOING TO BE IN THE DOWNTOWN, THAT SHIP HAS SAILED, AND WHILE THE PRICE OF THE INNER CITY OR URBAN CORE IS EXPENSIVE TODAY, SO IF I'M ASKING, CAN WE PLEASE COME BACK, GIVE A LITTLE BIT ADVANTAGE TO SOME 60% AMI PROJECT OR 80% AMI PROJECT, LET'S DO IT BECAUSE THE WINDOW OF TIME IS CLOSING QUICKLY.

THE ARGUMENT IS A GOOD ONE, SPRAWL WILL HAPPEN.

FOLKS WILL DECIDE TO LIVE IN SUBURBAN COMMUNITIES, FOLKS WILL DECIDE TO LIVE FURTHER THAN TO THE URBAN CORE.

BUT LET'S NOT FOOL OURSELVES THERE IS A COST OF SUBSIDIZING THAT URBAN COMMUNITY AS DOWNTOWN.

IF YOU TELL ME IT COSTS 10 TO $15 MILLION, KI SWALLOW THAT IN TERMS OF THAT'S A BIG PRICE TO PAY UP FRONT, BUT I KNOW THAT ON THE BACK END, FOR THAT COMMUNITY THAT THEY'RE BUILDING BEYOND HIGHWAY 90 OR AT 1604, THAT THEY'RE GOING TO COME TO THE MPO TOMORROW AND IN FIVE YEARS AND ASK FOR ANOTHER BILLION DOLLARS FOR THE EXPANSION OF 1604 AND HIGHWAY 90.

SO THE QUESTION IS, WHEN WE'RE SPENDING OR WE'RE SUBSIDIZING HOUSING, WHICH WE'RE DOING IN ALL PARTS OF THE CITY, OUTSIDE 410, INSIDE 410, OUT TO 1604, ARE WE WILLING TO HAVE THE TOUGH CONVERSATION AND SAY THAT IT MAKES MORE SENSE TO US, THE NUMBERS PENCIL OUT FOR US, IF WE HAVE MORE OF IT HAPPENING INSIDE OF 410, IN THE URBAN CORE, AND THEN THE QUESTION THEN TO ASK OURSELVES WHEN IS THE MOMENT BEFORE YOU'VE LOST IT.

I THINK THIS IS THE MOMENT TO TRY TO SQUEEZE SOME OF THAT IN.

MY ONLY REQUEST IS IF WE'RE GOING TO SEE THIS AT DECEMBER 6, I HOPE THAT'S ENOUGH TIME FOR YOU TO SHARPEN YOUR PENCIL ON SOME OF THE PROPOSALS, BECAUSE IF I'M LOOKING AT THE 7% THAT YOU'VE TOLD ME DEVELOPERS ARE LOOKING FOR TO MAKE THESE PROJECTS POSSIBLE, I REALLY NEED TO FIND OUT HOW AGGRESSIVE WE NEED TO BE TOTE -- TO GET THE 60% AMI.

I DO THINK WE'LL FIND OURSELVES WHERE AUSTIN IS TALKING ABOUT PASSING A HOUSING BOND IN THE FUTURE, IT'S NOT GOING TO BE ANYWHERE IN THE DOWNTOWN BECAUSE WE'VE MISSED THE WINDOW WHILE IT'S AFFORDABLE.

WHILE IT'S EXPENSIVE NOW, IT'S GOING TO BE MORE EXPENSIVE IN THE FUTURE.

LOOK TO DECEMBER 6 OR A DATE BEYOND THAT IF YOU NEED TO TO TRY TO GET US A PROPOSAL TO REALLY UNDERSTANDING THIS MOMENT THAT WE HAVE TO TRY TO CAPTURE IT.

IF IT COSTS US MONEY -- JUST LIKE ALL THINGS IT WILL COST US MONEY, BUT IN THE LONG RUN IF IT WILL TAKE US LESS FOR THE TAXPAYER, LESS FOR THE ROADWAY THAT WE DON'T HAVE TO BUILD OUT, BETTER ON US TO GET THAT DONE.

SO THAT WAS MY LAST COMMENT.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: GREAT.

THANK YOU, COUNCILMAN SALDAÑA.

AND I THINK IT'S A GREAT PLACE TO WRAP UP.

LORI, I'M SORRY YOU PROBABLY FEEL A LITTLE BIT OF A PING PONG BALL IN THIS DISCUSSION.

YOU WANTED IN, COUNCILMAN?

>> PERRY: I CHIMED IN EARLIER.

>> MAYOR NIRENBERG: YEAH, YOU'RE NOT ON THE LIST, BUT GO AHEAD, COUNCILMAN PERRY.

>> PERRY: NO, SOMETHING MUST HAVE HAPPENED.

ANYWAY, I DID.

BUT I JUST GOT A COUPLE OF QUESTIONS HERE, LORI.

THANK YOU VERY MUCH FOR DOING ALL THIS.

I'VE HEARD A LOT OF GOOD COMMENTS TODAY.

YOU KNOW, CHOICE, YOU KNOW, WHERE PEOPLE WANT TO LIVE, WHETHER IT'S DOWNTOWN OR OUT IN THE DISTRICTS, DOWNTOWN,

[02:25:03]

I JUST LOOKED AT A COUPLE OF YOUR SLIDES HERE, AND I'LL REFER TO ANOTHER ONE HERE, BUT ON YOUR FIRST SLIDE THERE, SINCE 2010 WE'VE ISSUED 11,000 FEE WAIVERS THAT REPRESENT A TOTAL INVESTMENT OF 4.4 BILLION.

SO THAT -- THIS IS ON THE ICRIP.

>> HOUSTON: YES.

>> PERRY: WHAT WAS OUR RETURN ON THAT 4.4 BILLION THAT WE'RE SAYING WE OFFERED WAIVERS ON?

>> HOUSTON: WE DON'T CAPTURE THAT TYPE OF DATA FOR THE CITY FEE WAIVER PROGRAM.

>> PERRY: OKAY.

>> HOUSTON: I CAN MINE THAT DATA AND GET BACK TO YOU.

>> PERRY: YES, I'D REALLY LIKE TO SEE THAT.

THAT'S A BIG DOLLAR FIGURE THERE FOR THE --

>> HOUSTON: BUT THAT'S FOR THE ENTIRE 84 SQUARE MILE BOUNDARY.

>> PERRY: I UNDERSTAND.

I UNDERSTAND.

YES, I THINK IT WOULD BE IMPORTANT TO SHOW THAT ALSO, BECAUSE THAT IS AN INVESTMENT THAT WE'VE MADE AND I'D LIKE TO SEE WHAT OUR RETURN ON THAT WAS, 4.4 BILLION.

AND THEN THE 10,000 HOUSING UNITS, WASN'T THAT A GOAL THAT WE HAD TO DO DOWNTOWN?

>> HOUSTON: YES.

BUT THIS APPLIES TO CITYWIDE, THE AGGREGATE AND CITYWIDE.

IN THE CURRENT PROPOSAL IF YOU'RE AN AFFORDABLE HOUSING PROJECT OUTSIDE THE ICRIP, YOU'RE STILL ELIGIBLE FOR THE CITY WAIVER.

THEY COULD BE INSIDE OR OUTSIDE THAT AREA.

>> PERRY: WHAT WAS OUR GOAL FOR DOWNTOWN.

>> HOUSTON: OUR GOAL WAS 7500 WITH A STRETCH GOAL OF 10,000.

>> PERRY: THAT'S WHAT I WAS REMEMBERING, THE STRETCH GOAL.

SO WHERE ARE WE TODAY ON THE...

>> PERRY: WE'RE AT 6500 ONLINE IN CONSTRUCTION OR IN THE PLANNING STAGES.

>> PERRY: HOW MANY HAVE BEEN ACTUALLY COMPLETED.

>> HOUSTON: ABOUT 70% OF THOSE.

WE ONLY HAVE ABOUT 4,000 THAT ARE ACTUALLY ONLINE.

>> PERRY: OUT OF THAT NUMBER, DO WE KNOW WHAT THE OCCUPANCY RATE IS?

>> HOUSTON: USUALLY BETWEEN -- I THINK THE LAST I HEARD WITH 1221, IT WAS -- PROBABLY 88% TO 100% DEPENDING TO WHERE THE PROJECT IS, BUT I CAN GET YOU THE EXACT NUMBERS FOR EACH PROJECT THAT HAS COME ONLINE.

>> PERRY: THAT WILL BE GREAT.

BECAUSE I THINK THIS ALL GOES INTO THE EXPANSION OF THE HOUSING DOWNTOWN, ARE WE REALLY GETTING THEM FILLED WITH OCCUPANTS, AND DO WE EXPECT THOSE -- THE REMAINDER OF THE HOUSING UNITS TO BE FILLED WHEN WE FINISH ALL OF THEM THAT ARE UNDER CONSTRUCTION RIGHT NOW.

>> HOUSTON: AND WE KNOW THERE IS A DEMAND FOR MARKET RATE HOUSING IN THE DOWNTOWN AREA.

>> PERRY: OKAY.

>> HOUSTON: THAT'S WHY WE'RE RECOMMENDING THE TWO-YEAR EXTENSION SO WE CAN LOOK AT THOSE PROJECTS COMING ONLINE.

WE HAVE THE SOUTH FLORES LOFTS, WE HAVE THE DWYER PROJECT.

THOSE PROJECTS HAVE JUST STARTED CONSTRUCTION OR ABOUT TO START CONSTRUCTION, THOSE WILL COME ONLINE AND WE'LL BE LOOKING AT THEIR OCCUPANCY LEVELS AS WELL TO SEE IF DEMAND SLOWS DOWN.

>> PERRY: GREAT.

I'M WILLING TO CONTINUE TO LOOK AT THIS FOR ANOTHER TWO YEAR, AND I AGREE WITH COUNCILWOMAN VIAGRAN, I'D RATHER SEE THIS AS A TWO-YEAR VERSUS ONE-YEAR, BUT WE CAN ALWAYS REVIEW THAT AT SOME POINT IN TIME DURING THAT TWO-YEAR TERM.

ALSO THE -- ANOTHER COMMENT WAS MADE, YOU KNOW, HAVE WE DONE OUR JOB? YOU KNOW, SHOULD WE TOLT TALLY DO AWAY WITH THIS PROGRAM? I MEAN, HAVE WE CROSSED THAT FINISH LINE ALREADY TO BRING IN DEVELOPMENT DOWNTOWN, AND WOULD IT CONTINUE IF WE DIDN'T CONTINUE THIS PROGRAM.

THAT'S -- HAVE WE ASKED DR. NIVIN TO EVEN TAKE A LOOK AT THAT? I MEAN --

>> HOUSTON: WE'VE LOOKED AT THAT, AND WITH KNOW THERE IS NOT -- BUT FOR A LUXURY-TYPE PRODUCT, A MARKET-RATE HOUSING PROJECT IN THE CENTRAL BUSINESS DISTRICT WOULD STILL NEED A SUBSIDY.

>> PERRY: OKAY.

ALL RIGHT.

>> HOUSTON: GOING BACK TO THE VESTANA, THE BADORA AND OTHER HOUSING PROJECTS THAT HAVE BEEN ONLINE FOR YEARS, EVEN THOSE PROJECTS RECEIVED SOME TYPE OF INCENTIVE.

>> PERRY: OKAY.

AND THEN I KEEP GOING BACK TO SLIDE 11, THAT -- I THINK THAT TELLS A VERY POWERFUL STORY THERE, AND, YOU KNOW, THAT'S HARD TO ARGUE WITH THE RETURN ON INVESTMENT THAT WE ARE GETTING ON THIS PROGRAM.

AND I THINK THAT'S WHAT WE NEED TO DO NOW IS TO VALIDATE THESE NUMBERS OVER THE NEXT COUPLE OF YEARS.

ARE WE REACHING THESE GOALS? ARE WE GETTING THAT RETURN ON INVESTMENT ON THIS PROGRAM?

>> HOUSTON: ABSOLUTELY.

>> PERRY: SO I THINK THAT TELLS A VERY GOOD STORY RIGHT THERE ON WHAT WE'VE BEEN ABLE TO DO HERE.

SO I'M TRYING TO GET THERE AS WELL, A LOT OF GREAT COMMENTS TODAY, AND I APPRECIATE ALL THE WORK THAT Y'ALL HAVE DONE TO PUT THIS ALL TOGETHER AND LOOK

[02:30:02]

FORWARD TO WHERE THIS IS GOING TO NEXT.

THANK YOU VERY MUCH, MA'AM.

THANK YOU, SIR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PERRY.

COUNCILWOMAN SAN SANDOVAL.

>> SANDOVAL: I PROMISED THE MAYOR I WOULD BE SUPER SHORT.

ONE OF THE REQUEST I HAD FOR YOU WAS TO COME BACK WITH A GOAL FOR THE NUMBER OF AFFORDABLE UNITS AND SOME CREATIVE IDEAS ABOUT HOW TO GET THERE, AND ONE THING ONE THING I WOULD LIKE TO BE CONSIDERED IS SEPARATING THE COST OF PARKING AND THE COST OF THE HOUSING.

ONCE THAT BECOMES OPTIONAL FOR THE BUYER, THAT HOME MAY BECOME -- THAT APARTMENT OR THAT UNIT MAY BECOME MORE AFFORDABLE.

I THINK IT'S IN KEEPING WITH THE IDEA OF WANTING TO HAVE A DENSE DOWNTOWN WHERE PEOPLE CAN ACTUALLY WALK.

I'M NOT COMFORTABLE WITH THE IDEA OF HAVING INCENTIVES THAT FORCE SOMEONE TO BUY A PARKING SPOT WITH THEIR CONDO.

SO I WOULD LIKE TO SEE THAT EXPLORED.

THANK YOU, LORI.

>> MAYOR NIRENBERG: LORI, THANK YOU VERY MUCH FOR YOUR VERY DILIGENT WORK ON THIS.

I KNOW IT'S BEEN DIFFICULT BECAUSE THERE'S A NUMBER OF DIFFERENT PRIORITIES MIXED IN HERE, BUT LET ME JUST SUMMARIZE WHERE I THINK WE ARE: NUMBER ONE, I THINK THERE'S CLEAR CONSENSUS ON THE COUNCIL THAT OUR STRATEGY TO, YOU KNOW, CONTINUE THE GROWTH OF THE URBAN CORE AND THE REVITALIZATION OF DOWNTOWN SAN ANTONIO CONTINUES.

I ALSO THINK THAT -- WHAT I'M HEARING IS THAT THERE'S A [INDISCERNIBLE] AND GENTRIFICATION NEEDED FOR THE INCENTIVES THAT ARE PROVIDED DOWNTOWN AS IT RELATES TO AFFORDABILITY.

SO BETWEEN NOW AND DECEMBER 6, IF WE CAN CONTINUE TO HAVE THAT CONVERSATION AND SEE WHAT ELSE CONVERSATION CAN BE DONE, I THINK THAT WOULD BE GOOD.

COUNCILMAN SALDAÑA'S POINT, I THINK, IS VERY WELL TAKEN.

AND OTHER PEOPLE HAVE SAID THIS AS WELL, WE SHOULDN'T SACRIFICE GOOD FOR PERFECT, AND WE KNOW WHAT THE FUTURE LOOKS LIKE IF WE DON'T DO ANYTHING AT ALL.

AND THAT IS A HOLLOWED OUT URBAN CORE THAT IS UNSUSTAINABLE BECAUSE WE CONTINUE TO SPRAWL EVER FARTHER OUTSIDE OF THE CITY LIMITS.

WE DON'T WANT THAT.

AND AUSTIN IS A GREAT EXAMPLE OF THE FUTURE IF WE DON'T DO THIS RIGHT, AND AS WAS MENTIONED, THEY JUST PASSED A $250 MILLION AFFORDABLE HOUSING BOND, MEANT TO ADDRESS THE CHALLENGES THAT WE'RE TRYING TO GET AHEAD OF.

WE BELIEVE THAT THE FRAMEWORK AND THE STRATEGY THAT THE COUNCIL HAS ADOPTED WILL HELP US PREVENT, YOU KNOW, THE WORST OF THAT HOUSING CRISIS, BUT IT ALSO MEANS WE'VE GOT TO LEAN IN AND IMPLEMENT POLICIES THAT SOMETIMES ARE -- AUDIO] -- APPROVED BY VOTERS ON THAT AFFORDABILITY BOND.

A LOT OF WORK TO DO, BUT I THINK THIS HAS BEEN A VERY GOOD DISCUSSION.

AND IF THERE'S ADDITIONAL QUESTIONS AND COMMENTS AND BRIEFING FOR COUNCIL, WE CAN DO THAT INDIVIDUALLY.

[2. Briefing by the Office of Military & Veterans Affairs on programs to support the military and veterans. [Carlos Contreras, Assistant City Manager; Jeff Coyle, Director, Government and Public Affairs]]

SO...

>> HOUSTON: THANK YOU.

>> MAYOR NIRENBERG: THANK YOU VERY MUCH, LORI.

GREAT WORK.

SHERYL, I KNOW THAT GENERAL AYIAL LA HAS BEEN SITTING THERE FOR TWO HOURS.

>> SCULLEY: IN THE INTEREST OF TIME WE'LL ASK JUAN AYALLA TO COME FORWARD.

WE HAVE A PRETTY COMPREHENSIVE AGENDA TODAY AND EXECUTIVE SESSION AND ALSO CEREMONIALS.

>> MAYOR NIRENBERG: YOUR PLEASURE, MAYOR.

YOU'RE HERE, GENERAL.

>> I'LL TRY TO GET THROUGH THIS QUICKLY.

LET'S SEE HERE.

I'VE GOT TO FIGURE OUT THE SLIDES FIRST.

NO, I GOT IT.

WELL, GOOD EVENING.

WHAT I'D LIKE TO DO TODAY IS GIVE YOU A SHORT PRESENTATION ON WHAT REALLY THE OFFICE OF MILITARY AND VETERANS AFFAIRS DOES.

LET ME GO BACK HERE.

FIRST OF ALL, WHAT I WANT TO START OUT WITH IS THE IMPORTANCE OF THE MILITARY.

WHY IS IT IMPORTANT FOR US HERE IN THE SAN ANTONIO REGION TO CONSIDER THE MILITARY AND WHY IS IT SO IMPORTANT? WELL, AS YOU SEE IN THAT FIRST SLIDE, THERE'S A LOT OF UNIQUE MISSIONS THAT TAKE PLACE HERE AND THEY'RE CENTRAL TO NATIONAL DEFENSE.

AND IF YOU LOOK AT THE FIRST TWO BULLETS SH IT IS A LARGEST EMPLOYER IN THE REGION.

ECONOMIC IMPACT IS PROSECUTETY SIGNIFICANT IN THE STATE OF TEXAS -- PRETTY

[02:35:02]

SIGNIFICANT IN THE STATE OF TEXAS.

IT HAS SOME UNIQUE CYBER SECURITY AND INTELLIGENCE MISSIONS.

BUT THINK WHAT'S REALLY IMPORTANT IS THE NUMBER OF VETERANS HERE, THE NUMBER OF RETIREES AND THE NUMBER OF FAMILIES.

AND IF WE DON'T KEEP OUR MILITARY INSTALLATIONS AND OUR MISSIONS HERE, THAT WILL BE AN INCENTIVE FOR THESE FAMILIES AND PEOPLE THAT RETIRE TO COME HERE TO JOINT BASE SAN ANTONIO OR TO THE REGION.

WE WERE CREATED IN 2005 AFTER THAT 2005 BRAC, AND THEN WE WERE FUNDED BY FEDERAL FUNDS OFFICE OF ECONOMIC ADJUSTMENT TO DO JOINT LAND USE STUDIES IN ORDER TO PROTECT THOSE MILITARY INSTALLATIONS.

AND, AGAIN, WE WERE FOCUSED ON MILITARY VALUE.

WE'VE BEEN FOCUSED ON THAT SINCE 2005.

MILITARY VALUE IS A TERM STRAIGHT OUT OF BRAC LANGUAGE, AND SO I THINK IT'S IMPORTANT, IF YOU HEAR ME SAY IT OVER AND OVER AGAIN, IT'S BECAUSE IT IS IMPORTANT.

AND SO TODAY, YOU KNOW, IN 2015 WE BECAME GENERAL FUNDED, BUT TODAY, WE DO FOCUS ON ADDING MILITARY VALUE TO OUR MISSIONS SO WE CAN KEEP THOSE MISSIONS HERE AND KEEP OUR INSTALLATIONS.

WHO ARE WE? THERE'S THREE OF US.

UNFORTUNATELY, KAREN HAD TO LEAVE, BUT WE'RE LOSING KAREN TO A GOOD JOB AT THE COUNTY.

AND WHAT I WANT TO POINT OUT IN THIS -- KAREN AND I GOT HIRED ON THE SAME DAY, AND, OF COURSE, SHE'S LEAVING ME NOW -- SHE DIDN'T HEAR THAT, SHE'S NOT HERE -- BUT IT'S A JOINT -- SHE'S AIR FORCE, I'M MARINE CORPS AND I HAVE AN ARMY PERSON ALSO ON THE STAFF, AND I THINK THAT'S IMPORTANT FOR OUR CREDIBILITY AS WE MOVE FORWARD IN OUR RELATIONSHIPS WITH ALL OUR SENIOR OFFICERS AND WITH THE COMMUNITY BECAUSE OF THE NUMBER OF VETERANS THAT ARE HERE.

MISSION STATEMENT: ONE OF THE FIRST THINGS THAT HAPPENED WHEN I WALKED IN, I WANTED TO SEE WHAT EXACTLY WE DID.

THE 5WS.

IMMEDIATELY WHAT I SURMISED IS THAT WE REALLY NEEDED TO HAVE A GOAL WHERE IF I LOOK BACK 10 YEARS FROM NOW, WHAT DID I WANT OUR MILITARY TO LOOK LIKE IN THIS REGION? AND SO MY GOAL, AND OUR OFFICE'S GOAL, AND WE WORK TOWARDS EVERY DAY, IS TO SUSTAIN AND ENHANCE THOSE MISSIONS.

IN OTHER WORDS, MAKE SURE THAT THE MISSIONS THAT WE HAVE HERE STAY HERE, AND THAT WE CONTINUE TO LOOK AT THE PENTAGON AND AT THE DEPARTMENT OF DEFENSE, IF THERE'S ANY OTHER MISSIONS THAT THEY COME HERE TO JOINT BASE SAN ANTONIO.

THAT THE DEPARTMENT OF DEFENSE, IF THERE'S A BASE THAT CLOSES T FIRST PLACE THEY CONSIDER IS JOINT BASE SAN ANTONIO AND THE SAN ANTONIO REGION FOR ALL THE REASONS THAT WE KNOW ARE VALUABLE SO MILITARY VALUE? SO HOW DO WE DO THAT? AGAIN, THIS IS OUT OF THE BRAC LANGUAGE.

HOW DO WE DO THAT? WE DO THAT THROUGH FOUR AREAS IN MY OPINION, AND IF YOU TALK TO EVERY COMMUNITY THAT HOSTS A MILITARY INSTALLATION, THESE ARE VERY IMPORTANT.

AND THESE FOUR AREAS ARE INFRASTRUCTURE SUPPORT, COMPATIBLE LAND USE IN ORDER FOR OUR MILITARY TO DO THEIR MISSIONS, PARTNERSHIPS, WHICH WE HAVE GREAT PARTNERSHIPS RIGHT NOW WITH OUR MILITARY, WITH OUR CIVILIAN COMMUNITY, WITH OUR BUSINESS PARTNERS, WITH OUR UNIVERSITIES AND ALSO ADVOCACY.

LET ME GO TO INFRASTRUCTURE SUPPORT.

SO THIS IS THE TYPE OF INFRASTRUCTURE SUPPORT THAT'S OUTSIDE THE WIRE.

IT'S NOT INSIDE THE BASE.

THAT'S THE RESPONSIBILITY OF THE MILITARY, BUT IN THE LAST DECADE OR SO, THE CITY OF SAN ANTONIO HAS REALLY BRIDGES, DRAINAGE, STREETS, SIDEWALKS, THIS IS EITHER CITY MONEY, BOND MONEY, AND SOME HELP FROM STATE AND FEDERAL AGENCIES, STATE AND FEDERAL SUCH AS OUR DEAG FUNDS THAT I'LL GO INTO A LITTLE BIT MORE.

THIS IS TANGIBLE, THIS IS REALLY SOMETHING WE CAN BE PROUD OF AND POINT TO AS A TANGIBLE DISPLAY OF WHAT WE DO IN ORDER TO KEEP OUR MISSIONS HERE.

A COUPLE OF SUCCESS STORIES, SO THE MILITARY IS GROWING.

UNITED STATES AIR FORCE IS ADDING FOUR NEW BARRACKS OR DORMITORIES BECAUSE THEY'RE GROWING BY ABOUT 4,000 MORE RECRUITS A YEAR.

ALL THE MILITARY IS GROWING, BUT THE AIR FORCE IS GROWING HERE.

THIS IS THE ORCHL PLACE WHERE YOU -- ONLY PLACE WHERE YOU TRAIN ENLISTED AIRMEN TO GO OUT INTO THE AIR FORCE WORLD.

SO THEY DID NOT HAVE THE FUNDING, AND THEY CAME TO US, TO MY OFFICE AND THEY SAID WE REALLY HAVE A LOT OF CONSTRUCTION THAT IS TAKING PLACE AND FOR THE SAFETY OF OUR CITIZENS, NUMBER ONE, AND TO ENSURE THAT THESE BUILDINGS AND THIS INFRASTRUCTURE GETS DONE IN A TIMELY MATTER, CAN YOU HELP US WITH A COUPLE OF ISSUES.

ONE OF THEM WAS A DECELERATION LANE OFF OF 90

[02:40:02]

AND THE OTHER ONE WAS THE GROWDEN GATE.

WHAT THAT DOES IS THERE'S A LOT OF CONSTRUCTION TRAFFIC GOING ON AND ON A DECEL LANE, IT MAKES IT SAFE AND IT ADDS AN EXTRA LANE IN ORDER FOR ALL THAT CONSTRUCTION TRAFFIC NOT TO INTERFERE WITH THE REGULAR TRAFFIC AND IT REALLY HELPS THEM MAKE THEIR TIMELINES WHEN THEY'RE DOING THEIR CONSTRUCTION.

THE GROWDEN GATE IS FOR ALL TRAFFIC BECAUSE TA'S THE ONLY GATE ON THAT SIDE OF LACKLAND.

I KNOW COUNCILMAN SALDAÑA IS VERY FAMILIAR WITH THE GROWDEN GATE AND THE DECEL LANE.

I THINK THOSE ARE GOING TO BE GREAT PROJECTS AND THEY REALLY SHOW COMMUNITY SUPPORT AND MILITARY VALUE.

COMPATIBLE LAND USE: YOU KNOW, THE MILITARY -- IN AUDIO] -- I SAY THIS ALL THE TIME, THE JOINLT LAND USE STUDIES REALLY OUTLINE BECAUSE THOSE ARE COMMUNITY STUDIES BETWEEN DEVELOPERS, HOUSING, THE MILITARY AND ALL KINDS OF CIVILIAN ORGANIZATIONS TO LOOK AT HOW CAN WE MAINTAIN OUR MISSIONS WHILE -- IN A SAFE MANNER, MILITARY MISSIONS, WHILE ALSO NOT MITIGATING ECONOMIC DEVELOPMENT AND NOT -- AND ALSO KEEPING OUR COMMUNITY SAFE AND OUR AVIATORS AND OUR FOLKS THAT ARE TRAINING SAFE.

SO -- AND SO WHAT HAPPENS AFTER THAT? WELL, THE JOINT LAND USE STUDIES MAKE VERY COMPREHENSIVE RECOMMENDATIONS ON WHAT KIND OF ZONING, WHAT KIND OF ORDINANCES AND WHAT DO WE NEED TO DO IN ORDER TO DO THOSE TWO THINGS THAT I SAID, MEET THE MILITARY MISSION WHILE AT THE SAME TIME ENSURING THAT WE DON'T HARM THE LOCAL COMMUNITY AND THAT THE ECONOMIC DEVELOPMENT CONTINUES.

AND SO I COUNTERED 12 -- 12 OR 13 ORDINANCES THAT ARE CITY DEPARTMENTS THAT HAVE DONE AND THEY INCLUDE -- FOR LIGHTING, COMMISSION ACTS AND WE HAVE SIGNED MEMORANDUMS WITH UNDERSTANDING WITH EVERY ONE OF OUR BASES, OR WITH JOINT BASE.

AND IF A DEVELOPER WANTS TO DEVELOP SOMETHING WITHIN A 5-MID WE SIT DOWN AND THE MILITARY SIT DOWN AND TRY TO COME TO AN AGREEMENT.

WE DO THIS ALL THE TIME, MELISSA RAMIREZ AND MIKE SHANNON ARE HERE WITH DEVELOPERS TO DO THAT.

SO LET ME TELL YOU A REAL QUICK STORY ON MARTINDALE.

MARTINDALE IS THE TEXAS NATIONAL GUARD ORGANIZATION, ROTARY -- OUR ONLY LOCAL HELICOPTER SOURCE.

THEY'RE A HUGE ASSET HERE DURING HURRICANE HARVEY.

THERE WAS A DEVELOPER THAT WANTED TO BUILD RIGHT OUTSIDE THE GATE.

THIS WAS IN DISTRICT 2.

I GOT AN E-MAIL ONE EVENING FROM THE TEXAS NATIONAL GUARD, ONE OF THEIR COLONELS, CAN YOU GIVE US [INDISCERNIBLE] AND IF THIS HAPPENS BECAUSE OF THE SOUND AND THE SAFETY OF THE FLIGHT PATTERN, WE MIGHT NOT BE ABLE TO TRAIN HERE.

SO WHAT DOES THAT MEAN? SO WE SAT DOWN WITH A DEVELOPER -- EXCUSE ME, AND THE LANDOWNER, WE SAT WITH THE MILITARY AND WE HASHED OUT AN AGREEMENT TO WHERE IT WAS COMPATIBLE TO SET STANDARDS AND THE MSAO WHICH ARE SOUND ATTENUATION AND OTHER RESTRICTIONS -- IT'S NOT MY WATER, BUT IT TASTES GOOD.

[LAUGHTER]

>> AS I'M NOT RUNNING TO THE BATHROOM -- TO ENSURE OUR TRAINING GETS DONE AND ALSO OUR SOUND ATTENUATION.

THANKS.

I HAD MY FLU SHOT.

[LAUGHTER]

>> SO THEY CAME TO US AND WE SAT DOWN AND WE AGREED THAT THESE ARE THE SOUND ATTENUATION AND THESE ARE THE -- NOT RESTRICTIONS, BUT ORDINANCES THAT WE WOULD PUT TOGETHER AND WE AGREED TO THEM.

AND SO WHAT THAT DOES, IT MEANS THAT THEY CONTINUE WITH THEIR TRAINING MISSION, WHICH IS VERY IMPORTANT.

THE OTHER THING I THINK IS VERY IMPORTANT IS THAT THEY'RE ABLE TO GROW.

SO I DON'T WANT TO LOCK OUR MILITARY INSTALLATIONS INTO WHERE YOU CAN ONLY DO CERTAIN MISSIONS AND YOU'VE GOT SO MUCH DEVELOPMENT AROUND THEM THAT YOU CAN'T GROW.

WE WANT TO GROW.

WE WANT TO BR ABLE TO ABSORB THOSE MISSIONS THAT WE HAVE THE CAPABILITY TO ABSORB, AND I KNOW THE COMMUNITY CAN DO SO.

SONDALE, BIG SUCCESS.

THEY'RE VERY HAPPY WITH US.

YOU AGREE, MELISSA? AND THEY'LL BE ABLE TO FLY THEIR MISSION.

SO THE TEXAS NATIONAL GUARD, THEY'RE READY TO GO FOR ANOTHER MISSION.

AND OH, BY THE WAY, WE HAD

[02:45:01]

AN MOU SIGNED WITH THEM, THEY WILL NOW ALSO BE INFORMED OF ANY FURTHER DEVELOPMENT THROUGH JOINT BASE SAN ANTONIO, WHICH THAT WASN'T THE'T CASE BEFORE.

IT WAS -- THEY WERE NOT EVEN UNDER OUR RADAR.

ADVOCACY, YOU KNOW, FOLKS IN UNIFORM CANNOT SPEAK ABOUT ADDITIONAL MILITARY MISSIONS, THEY CAN'T ADVOCATE FOR BASING, THEY CAN'T ADVOCATE FOR FUNDING, BUT ME, AN OLD RETIRED CIVILIAN, WORKING FOR THE CITY, WE CAN.

AND WE DO SO.

AND WE DO SO ALL THE TIME.

AND WE SEE IT AS OUR RESPONSIBILITY AND WE'VE DONE THIS IN THE PAST WITH SOME OF THE HELP FROM YOU-ALL, AT THE FEDERAL, AT THE STATE AND AT THE LOCAL LEVEL.

AT THE FEDERAL LEVEL -- [INDISCERNIBLE] WENT TO THE PENTAGON, WE ADVOCATED VERY HARD, AS YOU KNOW, FOR ALL TYPES OF MISSIONS.

ONE OF THEM WAS THE BATTLEFIELD [INDISCERNIBLE] AND I THINK THAT'S A -- AND WE GOT BATTLEFIELD AIRMEN AFTER TWO YEARS OF ADVOCATING.

WE'VE ALSO ADVOCATED FOR OTHER ISSUES AT THE STATE LEVEL FOR DEAG MONEY, DEFENSE ECONOMIC ASSISTANCE GRANTS, TWO BIENNIUMS AGO, THERE WAS ZERO MONEY FOR THESE INFRASTRUCTURE PROGRAMS FROM THE STATE.

WE COALESCED AS 15 MILITARY INSTALLATIONS AND MY COUNTERPARTS AT THE OTHERS, WE REALLY ADVOCATED REALLY HARD AND WE WERE ABLE TO GET A TOTAL OF $50 MILLION WITHIN THE LAST TWO BIENNIUMS. 15 MILLION OF IT CAME HERE TO JOINT BASE SAN ANTONIO.

WE GOT $5 MILLION EVERY TIME.

AND SO WATER CONNECTORS, LAND AROUND RANDOLPH FOR STANDOFF, AND OTHER -- THE OTHER THING WAS PORT IMPROVEMENTS FOR KELLY AIRFIELD.

ALL ADDING MILITARY VALUE.

SO I THINK IT'S VERY IMPORTANT ABOUT -- WITH THE ADVOCACY, AND WE'LL CONTINUE TO DO SO.

AND THAT WAS AT THE 85TH LEGISLATURE.

WE'LL BE READY TO GO AT THE 86TH.

I WENT DOWN AND ADVOCATED ON THE TREE ORDINANCE, A MARINE WALKING OUT AND ALL THE MEMBERS WERE HUGGING AND KISSING ME, I LOVED IT, BUT YOU TAKE IT FOR THE TEAM AND WE KEPT THAT ORDINANCE IN PLACE.

SUCCESS STORIES, AGAIN, I'M -- I TALKED ABOUT THE DEAG, WE'RE GOING TO ADVOCATE FOR THAT AGAIN.

AND ALSO WHAT WAS REALLY IMPORTANT WAS THE BAMC, BROOM ARMY MEDICAL CENTER.

THAT'S A NUMBER ONE LEVEL ONE TRAUMA CENTER IN THE NATION FOR THE DEPARTMENT OF DEFENSE.

THAT'S A GEM, AND WE ADVOCATED VERY HARD AND YOU-ALL IN THIS ROOM SIGNED THAT PROCLAMATION.

AND I WENT TO THE PENTAGON HERE A FEW MONTHS AGO, AND THEY'RE STILL TALKING ABOUT THE COMMUNITY SUPPORT TO KEEP THAT HOSPITAL HERE.

AND EVERY TIME I SEE SENIORS -- ESPECIALLY SENIOR, GENERAL OFFICERS, ESPECIALLY MEDICAL OFFICERS, THEY ALWAYS MENTION THE FACT THAT THE CITY OF SAN ANTONIO DID THAT PROCLAMATION AND THEY KNOW THERE WAS OPPOSITION TO IT.

IN MY OPINION, THAT'S A REAL WIN FOR US.

PARTNERSHIPS ARE REALLY IMPORTANT.

THESE HAVE TO BE MUTUALLY BENEFICIAL FOR THE COMMUNITY AND FOR JOINT BASE SAN ANTONIO.

AND WHAT THEY DO IS THEY REALLY INCREASE THE VALUE OF THE INSTALLATION, BUT WHAT THEY DO IS THEY TAKE CORE COMPETENCIES OF A MUNICIPALITY, SUCH AS PAVING, SUCH AS WASTE MANAGEMENT, AND THEY PARTNER WITH THE MILITARY SO WE'RE -- SO THE AIRMEN, THE MARINE, THE SOLDIER IS NOT PICKING UP TRASH -- NOT THAT THERE'S ANYTHING WRONG WITH THAT, OR PAVING SIDEWALKS, THEY'RE ACTUALLY DOING THEIR ACTUAL MILITARY CORE COMPETENCY MISSION THAT THEY'RE SUPPOSED TO DO WHEN THEY'RE DEPLOYED OR ON A CONTINGENCY.

SO THOSE ARE FORMAL AGREEMENTS.

WE DID ONE.

WE WORKED ON IT FOR TWO YEARS, WE FINALLY BROKE THE MOLD AND GOT THE TEMPLATE, AND THAT WAS DUE TO GENERAL PRINGLE COMING TO THE MTTF.

AND SHE ALSO CAME TO THE IGR COMMITTEE AND SAID, THIS IS WHERE WE NEED HELP.

WE NEED PAVING BECAUSE OUR ROADS ARE REALLY BAD INSIDE THE WIRE.

AND SO WE STARTED PARTNERING WITH THE TCI.

TCI HAS BEEN A GREAT PARTNER AND WE DID THAT PROJECT.

AND SO I THINK THAT PROJECT, THEY'LL PUT A SHOVEL IN THE GROUND IN JANUARY.

WE'RE LOOKING AT WASTE MANAGEMENT, WE'RE LOOKING AT ELEVATOR MAINTENANCE, WE'RE LOOKING AT OTHERS IN ORDER TO PARTNER.

AGAIN, GREAT RELATIONSHIP BUILDING, BUT AT THE DOD LEVEL, AT THE STRATEGIC LEVEL, WHAT THEY SEE IS THE COMMUNITY IS SUPPORTING THE MILITARY AND JOINT BASE SAN ANTONIO.

[02:50:02]

ALL OF YOU HAVE CALLED AT ONE TIME OR ANOTHER SUPPORT THE CITY COUNCIL, AND WE'RE ALWAYS GLAD TO B WE'RE ALWAYS STANDING BY TO SUPPORT, WHETHER IT BE PROTOCOL QUESTIONS OR CEREMONIAL QUESTIONS OR FACILITATE BASE ACCESS OR FACILITATE VISITS ON THE INSTALLATION.

AGAIN, WE ENCOURAGE THAT.

GENERAL LENDERMAN WHO IS A TREMENDOUS LEADER IS ALWAYS ENCOURAGING INVITATIONS FOR THE MAYOR, CITY COUNCIL.

SHE'S BEEN UP TO YOU.

WE COORDINATE THE CEREMONIES AGAIN.

AND ON THE OTHER SIDE, THEY ALL -- THEY CALL US ALL THE TIME AND SAY, YOU KNOW, CAN WE CALL THE MAYOR RON.

NO, YOU CAN'T DO THAT.

SO PROTOCOL QUESTIONS AND U I GOT ONE OF THOSE, MAYOR.

I'M SORRY, BUT IT... SO WE DO IT ON BOTH SIDES.

SO WE'RE THAT -- I THINK WE'RE A VERY GOOD LIAISON BETWEEN THIS BODY HERE AND THE LEADERSHIP AT JOINT BASE SAN ANTONIO.

SUPPORT THE CITY DEPARTMENTS.

WE WORK WITH CITY DEPARTMENTS ALL THE TIME.

CITY DEPARTMENTS, AND I'M GOING TO LIST THEM RIGHT THERE, BUT TRICENTENNIAL, THIS WAS -- STOOD UP 20 EVENTS THAT KAREN PUT TOGETHER THAT WERE HERE THROUGHOUT THE YEAR, BUT WE DO ALL KINDS OF OTHER THINS.

I TALKED ABOUT TCI.

WE WORK WITH DSD ALL THE TIME, WE WORK WITH ECONOMIC DEVELOPMENT GETTING THEM ACCESS, GETTING THEM ACCESS TO MILITARY LEADERS.

SAPD, WE ANSWER QUESTIONS ALL THE TIME ON THEIR RESERVIST,S AND REMEMBER LAST YEAR THEY PROVIDED SUPPORT FOR THE JBSA AIR SHOW WHICH IS SOMETHING THAT THEY REALLY ARE STILL THANKFUL FOR.

EVEN ARTS AND CULTURE, AND THE OTHER THING IS WE GO AND DO SPEAKING ISSUES OR SPEAKING EVENTS FOR THEM, AND SO IT'S A VERY GOOD RELATIONSHIP BETWEEN OUR OFFICE, US THREE, AND CITY DEPARTMENTS.

MILITARY TRANSFORMATION TASK FORCE.

IN MY OPINION, THAT IS THE BEST FORUM THAT WE HAVE FOR COMMUNICATING SUPPORT.

AS YOU KNOW, IT'S TRICHAIR.

COUNCILMAN PERRY REPRESENTS THE CITY, COMMISSIONER WOLFF REPRESENTS THE COUNTY AND WE HAVE RICHARD PEREZ REPRESENTING THE BUSINESS COMMUNITY.

WE SET THE AGENDA, WE INVITE THE BRIEFER, AND EVERY PROJECT THAT I'VE TALKED TO YOU ABOUT, PROBABLY TO INCLUDE EVERY ONE OF THOSE PROJECTS OF THE $90 MILLION FOR THE INFRASTRUCTURE PROJECTS T BAMC ISSUE, THE MARTINDALE, EVERY ONE OF THOSE CAME THROUGH THE MILITARY TRANSFORMATION TASK FORCE.

EVERY SINGLE ONE OF THEM DID, AND ACTUALLY SOMETHING GOT DONE.

SO I THINK THAT'S A GREAT COMMUNITY FORUM, AND THE ARMY -- SPECIFICALLY THE ARMY AND THE SENIOR NAVY -- OR THE SENIOR AIR FORCE GENERALS THAT ARE HERE REALLY LIKED THAT FORUM, BECAUSE WE BRING THEM TO THE TABLE AND THEY TELL US, THE COMMUNITY, WHAT THEIR NEEDS ARE.

VETERAN SUPPORT, WE DON'T HAVE A DEDICATED -- ANY DEDICATED CASE MANAGERS FOR VETERANS SUPPORT, BUT WE DON'T NEED THEM, IN MY OPINION, BECAUSE WE LEVERAGE 200 GREAT 50 RAN SUPPORT ORGANIZATIONS IN OUR CITY, AND WITH THEM, I BOUGHT THE USO IS HERE MR. CHUCK BUNCH, THEY PROVIDED $74 MILLION TO BUILD THAT BRICK AND MORTAR BUILDING.

HOW MANY PEOPLE HAVE YOU SEEN LAST YEAR?

>>

>> AND A LOT OF THEM HAVE BEEN REFERRALS.

THESE ARE ACTUALLY RETURN ON INVESTMENT, HAVE BEEN REFERRALS THAT COME FROM EVERYWHERE TO INCLUDE OUR OFFICE.

WE GET A LOT OF 3-1-1 E-MAILS, CAN YOU ANSWER THIS, AND WE USUALLY REFER THEM TO ONE OF THEM HERE -- ONE OF THE FOLKS THAT ARE HERE, ONE OF THE VETERAN SUPPORT ORGANIZATIONS.

I THINK THE ONES THAT WE REALLY WORK WITH THE MOST ARE THERE, GOOD SAMARITAN VETERANS OUTREACH WHICH, AGAIN, IT WAS PART OF THE CITY FUNDING.

USO, WE WORK CLOSELY WITH THEM, AND THE BEXAR COUNTY SERVICES WHICH I THINK WE'RE GOING TO HAVE A REAL GOOD IN NOW WITH THAT PARTICULAR DEPARTMENT WITH KAREN GOING THERE.

WE INITIATED ONE OF THE THINGS THAT WE DIDN'T KNOW HOW MANY VETERANS WERE IN THE CITY.

WE INITIATED A SELF-IDENTIFICATION PROGRAM WITH HR, WITHIN THE FIRST HOUR, 800 VETERANS WORK FOR THE CITY OF SAN ANTONIO HAD REGISTERED ON THAT ESS.

WE'RE GOING TO KEEP IDENTIFYING THEM.

WE ALSO SUPPORT PROCLAMATIONS, YOU KNOW, CHINESE AMERICAN WORLD WAR II, THE PHILIPPINO WORLD WAR II, WE ENJOY DOING THAT, AND THAT'S GREAT OUTREACH IN THE COMMUNITY.

THE VETERANS AFFAIRS COMMISSION WAS DORMANT WHEN WE GOT HERE.

THEY HADN'T HAD A QUORUM IN TWO YEARS.

MOST OF THE SEATS WERE UNFILLED.

THERE WERE -- ON THE LIST TO BE SUNSETTED, AND A LITTLE BIT OF BACKGROUND THAT WAS

[02:55:02]

ESTABLISHED IN 2001.

IT'S GOT 11 MEMBERS, ALL VETERANS.

SUPPOSED TO HAVE ONE PER DISTRICT AND ONE FROM THE MAYOR, AND THEIR MAIN GOAL IS TO ADVISE MEMBERS OF CITY COUNCIL, I'M PREACHING TO THE CHOIR HERE, BECAUSE YOU HAVE THESE FOLKS THAT ARE WITH YOUR TEAM ON VETERAN ISSUES OF COMOFN -- YOU KNOW, COMMON VETERAN ISSUES.

SO IN 2016, ONLY THREE OUT OF THE 11 SEATS WERE FILLED.

IT WAS MOSTLY VIETNAM ERA VET.

YOU KNOW VIETNAM ERA VET WALKS IN AND ASKS WHERE'S THE BAR.

COLD WAR COMES IN, WHERE'S THE WIFI.

WE'VE GOT RICHARD DELGADO BACK HERE WHO REPRESENTS OUR MAYOR, AND HE IS THE CHAIR OF THE VETERANS AFFAIRS COMMISSION.

RICHARD LIKES THE BAR, TOO.

[LAUGHTER]

>> SO SUCCESS STORIES HERE SO TODAY 10 OUT OF 11 SEATS ARE FILLED.

WE REALLY ARE WORKING HARD TO GET THAT 11TH ONE FILLED BECAUSE THEY REPRESENT YOU.

THEY ARE THE ONES THAT ARE ON THE GROUND, THAT HAVE THE BEAT AND THE HEARTBEAT OF THE VETERANS IN YOUR DISTRICTS, AND THEY'RE THE ONES THAT ARE GOING TO ADVICE YOU.

AND I I ENCOURAGE YOU TO MAKE THEM ADVISE YOU AND MAKE THEM WORK HARD BECAUSE THEY WANT TO WORK HARD.

I SIT IN THE MEETINGS WITH THEM, AND THEY DO A GREAT JOB OF DOING THINGS FOR THE CITY.

SOME OF THE THINGS THEY HAVE DONE, WHICH ARE TANGIBLE, I GO BACK TO TANGIBLE RESULTS, THEY HAVE HELPED US WITH SA SPEAK UP.

THEY NOW GO TO TOWN HALLS WHERE, YOU KNOW, COUNCILMAN PERRY, COUNCILMAN COURAGE, COUNCILMAN BROCKHOUSE, THEY'LL BRING IN VETERAN SUPPORT ORGANIZATIONS, THE COMMISSIONERS HELPED THEM PUT THOSE TOGETHER, AND WHEN I SIT IN THE MEETINGS WITH THEM, THEY ARE ASSISTING VETERANS IN EVERY DISTRICT AND THEY DO IT AT THE VERY TACTICAL LEVEL.

THEY GET A CALL, I CAN'T PAY MY BILLS, I DON'T HAVE MOBILITY, I CAN'T FIND MY DD214, AND THAT'S WHERE THEY COME IN AT THE VERY TACTICAL LEVEL AND THEY DO A VERY GOOD JOB OF IT.

THEY RECORD IT, YOU DON'T SEE IT SOMETIMES BUT I THINK THEY'RE DOING A VERY GOOD JOB.

THEY'RE ASSISTING VETERANS IN EVERY DISTRICT.

THEY'RE ALSO WORKING WITH OUR HR DEPARTMENT TO SEE ABOUT VETERAN-HIRING OPPORTUNITIES WITHIN THE CITY OF SAN ANTONIO.

BRAC, EVERYBODY WANTS TO TALK ABOUT BRAC, RIGHT NOW -- AND I SPEAK TO FOLKS AT THE PENTAGON ALL THE TIME, ONE ISN'T SCHEDULED UNTIL 2021, TENTATIVELY, THAT'S WHAT THEY'RE SAYING.

AND THE AIR FORCE -- ALL FOUR SERVICES ARE SAYING THAT THEY HAVE TOO MUCH INFRASTRUCTURE THEY WANT TO GET RID OF I.

THE AIR FORCE HAS BEEN SAYING THEY HAVE 30% INFRASTRUCTURE THEY WANT TO GET RID OF IT.

THEY WANT TO DECLARE IT.

YOU'VE GOT INSTRA FRUKURE, AND I'VE SEEN IT ON MARINE BASES WHERE THEY'RE STILL SUPPORTING HELICOPTERS THAT ARE OLDER THAN I AM AND NOW THEY'VE GOT F45 AIRCRAFT COMING IN AND THEY HAVE TO REPLACE IT.

THAT'S WHAT THEY'RE TALKING ABOUT.

I SAID THIS BEFORE THE ELECTION, I'LL SAY IT AGAIN, WITH THE NEW CONGRESS THE WAY IT S WE MIGHT HAVE A BRAC SOONER THAN THAT.

WE'RE ALWAYS ON THE OFFENSE WHEN IT COMES TO MILITARY VALUE AND KEEPING OUR INSTALLATIONS.

SO WE'RE BRAC-PROOFING, HOW DO WE DO IT? I JUST TALKED ABOUT IT IN ALL THE SLIDES, WITH THE BRAC LANGUAGE AND THOSE FOUR BUCKETS I JUST TALKED ABOUT ABOUT SUPPORTING OUR MILITARY THROUGH COMMUNITY SUPPORT AND DOING IT THROUGH THE INFRASTRUCTURE, ADVOCACY AND EVERYTHING WE HAVE DONE AND WE'LL CONTINUE TO DO AS WE MOVE ALONG.

OKAY.

BELIEVE IT OR NOT, LAST SLIDE.

SO I'VE TALKED ABOUT ALL THIS BUT I WANT TO REALLY EMPHASIZE THE FACT THAT OUR OFFICE WAS UNDER THE EDD AT ONE POINT.

ECONOMIC DEVELOPMENT, BECAUSE IF YOU REALLY THINK OF NEW MISSIONS, WHAT ARE THEY? THEY'RE NEW JOBS THAT COMES IN THE CITY.

I TALKED ABOUT BATTLEFIELD AIRMEN, GREAT IN MY OPINION -- A GREAT MISSION TO GET HERE, NOW THEY'RE GOING TO LOOK AT US IF THEY REAL LIERN MORE BASES WITH -- REALIGN MORE BASES WITH THOSE TYPES OF MISSIONS.

IN THE TWO YEARS THAT I'VE BEEN HERE AND THE ADVOCATING THAT HAS BEEN DONE BY ALL OF US, WE'VE QUIETLY GROWN 1500 NEW JOBS, NEW MILITARY POSITIONS IN CYBER ENGINEER INTELLIGENCE AND MEDICAL, AND WE'RE LOOKING AT HUNDREDS OF OTHERS THAT WE'RE READY TO GO AND ADVOCATE FOR AND GET THE CAPABILITY HERE.

AND HOW DO WE DO IT? I JUST TALKED ABOUT IT THROUGH THOSE FOUR BUCKETS.

THE BEST SAYING THEY'VE EVER HEARD IS NO CITY LOSES IT'S MILITARY INSTALLATIONS AND THE ONLY ONES THAT DO ARE THE ONES THAT DON'T HAVE THE POLITICAL WELL TO KEEP THEM, AND I DO THINK WE HAVE THAT POLITICAL WELL HERE.

FUTURES COMMAND, I THINK THAT'S A BIG WIN.

WE'RE GOING TO GO INTO TALK TO THEIR FOUR STAR GENERAL TO SEE HOW WE CAN PARTNER MORE.

I TALKED ABOUT THE IDSA, THAT'S JUST THE BEGINNING.

[03:00:04]

MARTINDALE, THAT WAS HUGE FOR THE NATIONAL GART, NOT ONLY IN SAN ANTONIO BUT IN THE REGION.

IF THE NATIONAL GUARD WANTS TO GROW IN THE FUTURE, THIS IS WHERE IT'S GOING TO GROW, BECAUSE WE PROVIDE THOSE INCENTIVES HERE.

AND, OF COURSE, DEAG, WE'LL CONTINUE TO FUND DEAAG, WE'LL CONTINUE TO ADVOCATE THEM.

THAT WAS A THUMB MAIL SKETCH OF REALLY WHAT WE DO AND WHAT WE'VE DONE IN THE LAST TWO AND A HALF YEARS.

THIS HAS BEEN A QUITE ENJOYABLE AND CHALLENGING ASSIGNMENT AND IT'S REALLY KEPT MY FOOT IN THE DOOR ALSO.

BUT I TELL YOU, I THINK THE MOST IMPORTANT THING IS THE OLD SAYING, IT'S NOT ABOUT -- NOTHING'S PERSONAL, IT'S INTENSELY PERSONAL.

IT'S ALL ABOUT THOSE PERSONAL RELATIONSHIPS THAT ALL OF US HAVE BUILT WITH SENIOR MILITARY GENERALS AND WITH THE REST OF THE COMMUNITY.

SO, MAYOR, COUNCIL, THANK YOU VERY MUCH FOR YOUR ATTENTION.

I KNOW YOU'VE GOT TO GO, BUT I'M STANDING BY FOR QUESTIONS.

PLAIRNZ GREAT, THANK YOU VERY --

>> MAYOR NIRENBERG: GREAT.

THANK YOU VERY MUCH, GENERAL, FOR YOUR GREAT WORK OVER THE LAST COUPLE OF YEARS THAT YOU'VE ASSUMED THE ROLE.

IT'S ALL BEEN VERY IMPACTFUL, SO WE'RE APPRECIATIVE AND WE'RE HERE TO SERVE YOU AS YOU CONTINUE TO SERVE THE CITY.

SO KEEP UP THE GREAT WORK AND I WOULD URGE YOU TO CONTINUE TO REMAIN AGGRESSIVE WITH YOUR APPROACH, JUST WITH COUNCIL AND WHAT OUR PARTNERS, JBSA NEED TO CONTINUE TO GROW BUT ALSO TO PROTECT THEMSELVES FROM LEGISLATIVE MEDALING,

[Executive Session]

AND ALSO KEEP IN MIND WE'RE CONVENING ON THE 2019 SESSION, SO WE DEFINITELY NEED YOU.

WE NEED YOUR INPUT AND WE'LL BE READY TO GO.

WE DO HAVE HAVE AN EXECUTIVE SESSION A BRIEF ONE BEFORE WE GET TO CEREMONIALS.

THE TIME NOW IS 5:17 P.M. ON THIS 14TH DAY OF NOVEMBER, 2018.

PURSUANT TO THE AUTHORITY GRANTED BY CHAPTER 551 OF THE TEXAS GOVERNMENT CODE, TEXAS OPEN MEETINGS ACT, COUNCIL WILL NOW RECESS INTO EXECUTIVE SESSION TO DISCUSS ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.087, ECONOMIC DEVELOPMENT; PURCHASE, EXCHANGE, LEASE OR VALUE OF REAL PROPERTY PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.072, REAL PROPERTY; AND LEGAL

>> MAYOR NIRENBERG: GOOD

[Ceremonial Recognitions]

EVENING, EVERYONE.

CITY COUNCIL HAS RECONVENED.

THOSE ITEMS NOT DISCUSSED WILL BE TAKEN UP TOMORROW.

WELCOME TO OUR CEREMONIAL'S AGENDA.

WE HAVE THREE CEREMONIALS TODAY WE'LL GO AHEAD AND START WITH OUR FIRST.

AND THAT IS THE 50TH ANNUAL ELF LOUISE CHRISTMAS SEASON.

THE ELF LOUISE CHRISTMAS PROJECT WILL KICK OFF ITS 50TH SEASON OF DELIVERING CHRISTMAS GIFTS TO DISADVANTAGED CHILDREN IN THE GREATER SAN ANTONIO AREA.

THE NONPROFIT ORGANIZATION FOUNDED IN 1916 BY LOUISE LOCKER WHILE SHE WAS A STUDENT AT TRINITY UNIVERSITY HAS DELIVERED CHRISTMAS GIFTS TO MORE THAN 1 MILLION CHILDREN SINCE ITS INCEPTION.

I'D LIKE TO CALL FORWARD ROSE SILLER TO ACCEPT THIS PROCLAMATION.

AND I'LL GO AHEAD AND READ IT NOW.

GOOD EVENING.

>> GOOD EVENING.

>> MAYOR NIRENBERG: WHEREAS DECEMBER 2018 WILL MARK THE 50TH SEASON OF THE ELF LOUISE CHRISTMAS PROJECT, A LOCAL HOLIDAY TRADITION OF DELIVERING TOYS TO DESERVING CHILDREN OF BEXAR COUNTY, AND WHEREAS FOUNDED IN 1969 BY LOUISE LOCKER WHEN SHE WAS A STUDENT AT TRINLT UNIVERSITY THIS NONPROFIT ORGANIZATION STAFFED BY VOLUNTEERS AND FUNDED BY DONATIONS IS DEDICATED TO PROVIDING A LITTLE BIT OF JOY TO LESS FORTUNATE CHILDREN DURING THE CHRISTMAS SEASON.

AND WHEREAS THE ELF LOUISE CHRISTMAS PROJECT RELIES ON THE HELP OF DONATIONS FROM GRASSROOTS SAN ANTONIO, INCORPORATIONS WHO WANT TO SHARE THEIR BLESSINGS AT CHRISTMAS, AND WHEREAS THIS SEASON NEARLY 5,000 VOLUNTEERS WILL WRAP OVER 35,000 GIFTS FOR MORE THAN 20,000 CHILDREN THAT WILL BE DELIVERED BY OVER 450 MEN AND WOMEN DRESSED AS SAN TAXER NOW THEREFORE, I, RON NIRENBERG, MAYOR OF THE CITY OF SAN ANTONIO DO HEREBY PROCLAIM DECEMBER 2018 TO BE THE ELF LOUISE 50TH ANNUAL CHRISTMAS PROJECT.

CONGRATULATIONS.

THANK YOU.

[APPLAUSE]

>> MAYOR NIRENBERG: THANK YOU VERY MUCH.

[03:05:10]

>> ON BEHALF OF LOUISE LOCKER, WE'D LIKE TO THANK YOU FOR RECOGNIZING THE ELF LOUISE CHRISTMAS PROJECT.

IT IS RUN PRIMARILY ON NOTHING BUT VOLUNTEERS.

THOSE 35,000 GIFTS WILL BE WRAPPED IN ONE WEEK.

IT WILL START ON A SUNDAY, AND WE WILL END THAT FRIDAY.

THEY WILL BE ALL ROUTED OUT AND BE DELIVERED BEFORE YOU KNOW IT, AND THE JOY THAT IT BRINGS.

DECEMBER 16, WE INVITE ANYBODY WHO WOULD LIKE TO JOIN US FOR A ROUTE, WE WILL TAKE YOU IN AN ANTIQUE CAR, PRE1964, MAYBE 1966.

WE INVITE YOU, JOIN US, DECEMBER 16 AT 1:30.

PORT S. A., WE'LL PUT YOU ON ONE OF THOSE CARS AND GO ON A QUICK ROUTE TO DELIVER THE TOYS.

THANK YOU, AGAIN, MR. MAYOR.

WE APPRECIATE IT.

>> MERRY CHRISTMAS.

THANK YOU.

GOD BLESS YOU.

>> MAYOR NIRENBERG: WE'VE GOT A FEW FOLKS THAT WOULD LIKE TO SAY A FEW WORDS BEFORE YOU GUYS LEAVE.

>> PERRY: ABSOLUTELY.

I JUST WANTED TO SAY THANK Y'ALL VERY MUCH.

AND IT TAKES A LOT OF DEDICATION FROM PEOPLE TO RUN THIS PROGRAM, NOT JUST THE VOLUNTEERS, BUT TO ORGANIZE ALL OF THIS.

AND I KNOW WE'RE -- YOUR LOCATION IT USED TO TO BE ON AUSTIN HIGHWAY.

>> WE'RE LOCATED AT PORT S. A.

>> PERRY: IT USED TO BE ON AUSTIN HIGHWAY.

WHAT A HUB OF ACTIVITY WHEN Y'ALL WERE DOING ALL OF THIS IN THAT ONE WEEK'S TIME.

SO THANK YOU VERY MUCH FOR WHAT YOU DO.

IT BRINGS BIG SMILES TO A LOT OF CHILDREN'S FACES AND PARENTS ALSO, SO THAT'S GREAT.

THANK YOU VERY MUCH FOR WHAT YOU DO.

>> YOU'RE VERY WELCOME.

AN HONOR.

>> THANK YOU, MR. PERRY.

>>

>> COURAGE: I'D JUST LIKE TO ADD MY COMMENT, I HAD AN OPPORTUNITY MANY, MANY YEARS AGO, I AND MY WIFE AND ONE OF MY OLDER CHILDREN WENT AND HELPED WRAP GIFTS FOR ELF LOUISE, IT JUST WARMS YOUR HEART WHEN YOU'RE ABLE TO PARTICIPATE IN SUCH AN IMPORTANT PROGRAM.

SO THANK YOU VERY MUCH.

>> THANK YOU.

>> MAYOR NIRENBERG: I'D ALSO LIKE TO SAY THANK YOU FOR BEING A GREAT EXAMPLE OF WHAT SAN ANTONIO SPIRIT AND THE HOLIDAY SEASON IS ALL ABOUT.

THE FACT THAT WE DON'T FORGET ANY OF THE CHILDREN IN SAN ANTONIO, ESPECIALLY THOSE WHO ARE LESS FORTUNATE.

AND I CAN ASSURE YOU, SANTA, THE ENTIRE CITY COUNCIL HAS BEEN VERY GOOD THIS YEAR.

[LAUGHTER]

>> MAYOR NIRENBERG: SO THANK Y'ALL VERY MUCH.

[APPLAUSE] ALL RIGHT.

OUR SECOND ITEM IS A RESOLUTION OF RESPECT FOREMARLENE SANDLER, IN 1998 MARLENE SANDLER LEARNED THE CITY OF SAN ANTONIO DID NOT HAVE AN ESTABLISHED DOMESTIC VIOLENCE PROGRAM.

MRS. SANDLER SELFLESSLY VOLUNTEERED HER TIME TO RESEARCH AND PREPARE A GRANT APPLICATION TO START A PROGRAM FOR THE PREVENTION OF VIOLENCE AGAINST WOMEN IN CITY'S MUNICIPAL COURTS.

THAT APPROVED GRANT SUPPORTS TWO PROSECUTORS, A CASE WORKER AND TWO OTHER STAFF POSITIONS, AND THIS WAS THE &-ÚL PROGRAM IN THE STATE OF TEXAS WAS FOUNDED AND HAS BEEN A MODEL FOR OTHER CITIES.

SINCE ITS INCEPTION T PROGRAM HAS SERVED OVER 20,000 WOMEN AND COUNTLESS FAMILY MEMBERS.

MRS. SANDLER RECENTLY PASSED AWAY BUT NOT BEFORE SHE LEARNED HER DEEP WISH TO MAKE A DIFFERENCE IN SOMEONE'S LIFE HAS BEEN FULFILLED.

THE CITY IS PROUD TO HONOR HER WORK AND THE DIFFERENCE SHE'S MADE IN OUR COMMUNITY.

NOW I'D LIKE TO CALL FORWARD LAUREN O'CONNOR TO ACCEPT THIS RESOLUTION ON HER BEHALF.

I'LL READ IT NOW.

IN APPRECIATION OF MARLENE SANDLER, WHEREAS THE DOMESTIC VIOLENCE -- EXCUSE ME, WHEREAS THE VIOLENCE AGAINST WOMEN ACT WAS INTRODUCED BY SENATOR JOE BIDEN IN 1994 TO CHANGE OUR NATIONAL CONVERSATION ABOUT THE ABUSE OF WOMEN, AND WHEREAS IN 1997 MARLENE SANDLER IDENTIFIED A NEED IN THE CITY OF SAN ANTONIO FOR A VIOLENCE AGAINST WOMEN PROGRAM TO FACILITATE AND ENHANCE THE PROSECUTION OF DOMESTIC VIOLENCE CLASS C MISDEMEANORS PROVIDE FOR THE VICTIM'S SAFETY AND PREVENT THE VIOLENCE FROM ESCALATING, AND WHEREAS MRS. SAD SELFLESSLY TO SUBMIT A GRANT THAT ENABLED THE CITY OF SAN ANTONIO TO PIONEER THE FIRST PROGRAM IN THE STATE OF TEXAS PROVIDING FUNDS FOR TWO PROSECUTORS, A CASE WORKER, CASE WORKER MANAGER, AND DATA ENTRY STAFF PERSON IN THE CITY'S MUNICIPAL COURTS.

AND WHEREAS THE SAN ANTONIO PROGRAM INSPIRED OTHER CITIES ACROSS THE STATE OF TEXAS TO CREATE A SIMILAR PROGRAM AND IS A TESTAMENT TO THE VISION AND FORTITUDE OF MRS. SANDLER IN THIS FIRST PROGRAM STAFF, AND WHEREAS AN INDICATION OF THE PROGRAM'S PORCHES AND SUCCESS IN THE COMMUNITY IS AT THE CITY HAS HELPED OVER 1,000 WOMEN AND THEIR FAMILIES EACH YEAR ESCAPE LIVES OF VIOLENCE AND FEAR

[03:10:01]

AND PROVIDED HOPE AND HEALING.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN ANTONIO THAT WITH THE PASSING OF MARLENE SANDLER, THE CITY OF SAN ANTONIO HAS LOST A VALUABLE ASSET TO ITS PAST, PRESENT AND FUTURE.

WE ARE GRATEFUL FOR MRS. SANDLER'S SELFLESS EFFORTS IN HELPING MAKE A MEANINGFUL DIFFERENCE IN THE LIVES OF THOUSANDS OF WESM IN OUR CITY -- WOMEN IN OUR CITY, AND IT IS HEREBY DIRECTED THAT A COPY OF THIS RESOLUTION WILL BE PRESENTED TO HER FAMILY AS A TOKEN OF OUR HEART FELT GRATITUDED AND THAT IS PRESENTED THIS 14TH DAY OF NOVEMBER, 2018.

THANK YOU VERY MUCH.

[APPLAUSE]

>> THANK YOU FOR THE TREMENDOUS HONOR YOU'VE BESTOWED UPON OUR MOTHER, MARLENE SANDLER.

AS YOU KNOW, SHE PASSED AWAY LAST MONTH.

WHEN SHE LEARNED SHE WAS TERMINALLY ILL, ONE OF THE THINGS SHE TOLD ME SHE WISHED SHE HAD DONE SOMETHING TO LEAVE THIS WORLD A BETTER PLACE.

EVEN THOUGH SHE WAS RESPONSIBLE FOR SECURING THE DOMESTIC VIOLENCE GRANT, SHE HADN'T REALIZED THE IMPACT IT WOULD HAVE ON SOME MANY PEOPLE.

SHE WAS JUST DOING A JOB THAT WAS ASSIGNED TO HER AS A VOLUNTEER.

THEN WHEN SHE WAS HOME UNDER THE CARE OF HOSPICE, SUSAN WOOD CAME TO VISIT AND READ THIS BEAUTIFUL DRAFT OF THE PROCLAMATION TO HER IN FRONT OF HER CHILDREN AND THE NURSE THAT WAS CARING FOR HER.

SHE WAS PRETTY STUNNED AND HAD TIERS IN HER EYES, AS WE ALL DID.

LO AND BEHOLD, SHE HAD DONE SOMETHING TO MAKE THE WORLD A BETTER PLACE AFTER ALL.

AS GOD WOULD HAVE IT, THAT WAS THE LAST DAY THAT SHE WAS BOTH CONSCIOUS AND LUCID.

SHE DIED A FEW DAYS LATER, SO I WANT TO THANK YOU FOR MAKING WHAT WAS IN EFFECT HER LAST DAY ON EARTH A VERY SPECIAL ONE FOR HER AND HER FAMILY.

I ALSO WANT TO ACKNOWLEDGE CAMELA, ELIZABETH MCRAY JAWR EFOR THEIR VERY SPECIAL ROLE IN MAKING THIS DAY HAPPEN AND I WANT TO ACKNOWLEDGE ALL OF THE PEOPLE, BOTH PAST AND PRESENT, WHO HAVE TIRELESSLY WORKED TO COMBAT DOMESTIC VIOLENCE, BOTH AT MUNICIPAL COURT AND IN OUR COMMUNITY.

GETTING THE MONEY TO FUND THE POSITION WAS JUST THE BEGINNING.

THE PEOPLE WHO FILLED THOSE POSITIONS WORK HARD EVERY DAY TO MAKE OUR COMMUNITY A SAFER PLACE FOR THOSE VICTIMS AND THEIR FAMILIES.

IT JUST SO HAPPENS THAT YESTERDAY WAS WORLD KINDNESS DAY, A DAY SET ASIDE TO ACKNOWLEDGE GOOD DEEDS AND THE COMMON DLED -- THREAD OF KINDNESS WHICH BINDS US.

I WANT TO THANK YOU FOR YOUR KINDNESS THAT YOU'VE BESTOWED UPON US BY YOUR ACTIONS IN GIVING THIS PROCLAMATION IN MY MOTHER'S HONOR.

THANK YOU SO MUCH.

[APPLAUSE]

>> MAYOR PRO TEM: WE HAVE A COUPLE OF OTHER COMMENTS FROM COUNCILPEOPLE.

COUNCILMAN PELAEZ.

>> PELAEZ: THANK YOU.

I DON'T KNOW IF YOU KNOW MY MOM, SHE'S THE CEO OF THE BATTERED WOMEN'S AND CHILDREN'S SHELTER.

I'M TEXTING HER RIGHT NOW.

SHE'S EXCITED THAT PEOPLE ARE LISTENING TO THE STORY OF MARLENE AND EVERYTHING THAT SHE BROUGHT TO THE TABLE, AND MY MOM'S WORDS WERE, THAT MARLENE PROVES THAT THE WORD "HERO" ISN'T A NOUN, BUT THAT IT'S A VERB, AND MARLENE REALLY IS A HERO, A REALLY, REALLY, REALLY BIG, BIG PAIR OF SHOES NEED TO BE FILLED.

AND I KNOW E THAT THERE'S YOUNG WOMEN OUT THERE WHO ARE GOING TO BE HEARING ABOUT MARLENE AND GENERATIONS FROM NOW OTHER YOUNG GIRLS ARE GOING TO BE HEARING ABOUT MARLENE AND HOW SHE MADE IT POSSIBLE FOR WOMEN TO BE RESILIENT AND TO THRIVE AND I'M JUST SO HAPPY AND SO HONORED TO BE HERE IN A ROOM FULL OF PEOPLE JUST GETTING TO TALK ABOUT HER.

SO THANKS FOR BEING HERE.

THANK YOU, MAYOR, FOR RECOGNIZING WHAT REALLY IS ONE OF THE GREATEST SAN ANTONIANS TO EVER HAVE GRACED US.

>> OH, THANK YOU.

THANK YOU.

>> MAYOR PRO TEM: THANK YOU, COUNCILMAN.

[APPLAUSE]

>> MAYOR PRO TEM: COUNCILMAN TREVINO?

>> TREVINO: THANK YOU MAYOR PRO TEM.

I REALLY JUST WANT TO SAY THANK YOU.

CELEBRATING SOMETHING LIKE THIS IS REALLY SAYING THAT SOMETIMES WE HAVE TO GO OUT THERE AND KNOW THAT THERE'S PEOPLE IN THE COMMUNITY THAT ARE LOOKING AT THOSE GAPS THAT THE COMMUNITY HAS AND THEY'RE TRYING TO FILL THOSE GAPS FOR SUPPORT, FOR PEOPLE WHO NEED A VOICE, AND I THINK IT'S SO IMPORTANT FOR MANY FAMILIES THAT STRUGGLE WITH THIS, THAT THEY KNOW THAT THERE'S SOMEBODY OUT THERE THAT CARES SO MUCH,

[03:15:01]

THAT HAS CREATED A PROGRAM, SO IT'S NOT JUST ABOUT ANY ONE PERSON, BUT RATHER A COMMUNITY THAT'S COME OUT TO SUPPORT THEM AND TO SHOW THEM THAT THEY HAVE A VOICE AND THEY HAVE OPPORTUNITIES FOR SUPPORT.

THANK YOU.

>> THANK YOU.

>> MAYOR PRO TEM: AND I'LL JUST ADD MY COMNT THAT IT'S -- COMMENT THAT IT'S NOTABLE THIS EVENING THAT WE HEAR ABOUT TWO PEOPLE WHO HAVE DONE SO MUCH FOR OUR COMMUNITY.

ONE TO BRING JOY TO CHILDREN, AND ONE TO BRING HOPE TO WOMEN.

AND SO THANK YOU FOR BEING HERE AND REPRESENTING HER THIS EVENING.

>> THANK YOU.

>> MAYOR NIRENBERG: AND I'LL JUST CLOSE BY SAYING, THANK YOU, LAUREN, FOR KEEPING YOUR MOTHER'S STORY ALIVE AND HER MISSION AND PURPOSE VERY MUCH A PART OF OUR CENTRAL PURPOSE HERE IN SAN ANTONIO.

I WILL SAY WE ALL HAVE TO ACKNOWLEDGE THAT WE HAVE A LOT MORE WORK TO DO, BUT HOPEFULLY, AGAIN, WITH THE SPIRIT THAT YOUR MOTHER BROUGHT TO THE CITY ORIGINALLY, WE CAN CONTINUE TO ADVANCE THAT WORK.

SO THANK YOU FOR BEING HERE TONIGHT.

>> THANK YOU.

[APPLAUSE]

>> MAYOR NIRENBERG: ALL RIGHT.

OUR THIRD AND FINAL CEREMONIAL TONIGHT IS THE FIRST FRIDAY NETWORK WHICH WILL OBSERVE THE MONTH OF NOVEMBER AS HOME HEALTHCARE AND HOSPICE MONTH.

THE NETWORK MEMBERS CONSIST OF INDIVIDUALS, AGENCIES AND ORGANIZATIONS THAT PROVIDE SERVICES TO SENIORS IN OUR COMMUNITY.

HOME CARE AND HOSPICE PROFESSIONALS PLAY A MAJOR ROLE IN HELPING PATIENTS LIVE INDEPENDENTLY IN THE COMFORT OF THEIR OWN HOME.

SO I'D LIKE TO CALL FORWARD NOW CHARLIE GURDS TO ACCEPT THIS PROCLAMATION.

OH, HEY, CHARLIE.

[APPLAUSE]

>> MAYOR NIRENBERG: THANK YOU, CHARLIE.

AND I'LL READ THAT NOW.

WHEREAS FIRST FRIDAY NETWORK WILL JOIN OTHER HOME CARE AGENCIES A ACROSS THE COMMUNITY IN CELEBRATING THE MONTH OF NOVEMBER 2018 AS NATIONAL HOME CARE AND HOSPICE MONTH TO INCREASE AWARENESS AND RECOGNIZE A DEDICATED PROFESSIONALS WHO MAKE A DAILY DIFFERENCE IN THE LIVES OF THE PEOPLE THEY SERVE, AND WHEREAS HOME CARE AND HOSPICE IS THE MOST PREFERRED METHOD OF HEALTHCARE OF DISABLED, CHRONICALLY AND TERMINAL PATIENTS EAGER TO LIVE IN THE SECURITY AND COMFORT OF THEIR OWN HOME, AND WHEREAS THESE CAREGIVERS COME IN MANY ROLES, THERAPISTS AND AIDS, NURSES, CNAS AND SOCIAL WORKERS, THEIR COMPASSIONATE ATTENTION TO DETAIL IMPROVE THE LIVES OF EVERY PATIENT UNDER THEIR CARE, AND WHEREAS HOME CARE AND HOSPICE SERVICES HELP PATIENTS LIVE FULLY BY SUPPORTING THEIR SOCIAL, AND EMOTIONAL WELL-BEING, THERE BY I, MAYOR RON NIRENBERG DECLARE NOVEMBER 2018 TO BE HOME CARE AND HOSPICE MONTH.

THANK YOU.

[APPLAUSE]

>> SO WE WANT TO THANK YOU, MAYOR NIRENBERG AND THE WHOLE CITY COUNCIL AND THE CITY FOR THIS PROCLAMATION.

WE ARE SO EXCITED ABOUT RECEIVING THIS PROCLAMATION, RECOGNIZING NOVEMBER AS HOME CARE AND HOSPICE MONTH.

I'D ALSO LIKE TO THANK MY FRIEND CHRIS ALDEREDY WHO MANY KNOW FOR HELPING US COORDINATE THIS -- EVERYBODY'S SAYING HI -- AND PUTTING THIS TOGETHER, AND CHRIS HAS BEEN A MEMBER OF THE HOME CARE INTRIS FOR MANY YEARS, WORKED WITH HER FOR MANY YEARS AND Y'ALL MAY KNOW THAT HER HUSBAND IS A FORMER CITY COUNCILMEMBER.

SO THANK YOU, CHRIS, FOR DOING THIS.

AS YOU MENTION FIRST FRIDAY NETWORK IS AN ORGANIZATION WHOSE MEMBERS COMPRISED WITH THOSE ORGANIZATIONS, THOSE AGENCIES AND THOSE INDIVIDUALS WHO PROVIDE SERVICES FOR OUR SENIOR COMMUNITY.

ALMOST ALL OF US PROVIDE THOSE SERVICES IN THE HOME, WHEREVER THAT HOME MAY BE.

WE ARE HOME HEALTH, WE ARE HOSPICE, WE'RE INDEPENDENT LIVING, ASSISTED LIVING, MEMORY CARE FACILITIES, WE ARE SOCIAL WORKERS, WE'RE NURSES, WE'RE EVEN MARKETERS, BUT SERVICES TO SENIORS HAVE EXPANDED SO MUCH RECENTLY THAT WE ARE ALSO ELDER LAW ATTORNEYS, REALTORS, HAIR DRESSERS, PLACEMENT SPECIALISTS, MOVERS, AIR CONDITIONING COMPANIES, INSURANCE AGENTS, PET SITTERS, AND EVEN ENTERTAINERS THAT ENTERTAIN OUR SENIORS.

WE REPRESENT THE THOUSANDS OF WORKERS AND AIDS WHO GET UP EVERY MORNING, EVERY DAY AND EVERY WEATHER CONDITION TO TAKE CARE OF THOSE WHO CANNOT CARE FOR THEMSELVES.

AS YOU CAN TELL, WE ARE VERY PROUD OF OUR INDUSTRY AND VERY PROUD OF EVERY ONE IN THAT SERVICE.

SO ONCE AGAIN, WE THANK YOU VERY MUCH FOR YOUR RECOGNITION.

[APPLAUSE]

>> MAYOR NIRENBERG: WHY DON'T WE DO COUNCIL COMMENT AND THEN WE'LL DO THE

[03:20:03]

PICTURE FIRST.

>> OKAY.

>> MAYOR PRO TEM: COUNCILMAN PELAEZ?

>> PELAEZ: THANK YOU.

I -- Y'ALL -- AUDIO] -- SOPHIA'S 11, THEY'RE MY KIDS, I TELL PEOPLE THAT ONE OF THE REASONS I'M SO NICE TO THEM IS BECAUSE ULTIMATELY THEY'RE THE ONE WHOSE ARE GOING TO DECIDE, YOU KNOW, THE SENIOR CARE FACILITY I'LL BE GOING INTO AND SO LONG AS MY SENIOR CARE FACILITY HAS WIFI AND THEY SERVE WINE, I'LL BE FINE.

[LAUGHTER]

>> PELAEZ: BUT THE REALITY IS THAT -- I'VE GOT A GRANDMOTHER WHO'S 86 AND HER TWIN SISTER JUST PASSED AWAY, BUT SHE HAD SOME TERRIBLE EXPERIENCES WITH HER CARETAKERS, AND THEN, YOU KNOW, AND THEN WE HAD SOME WONDERFUL ONES.

AND WE'VE GOTTEN TO SEE THE DIFFERENCE BETWEEN REALLY BAD AND REALLY GOOD.

AND SOMETIMES THAT DIFFERENCE IS JUST A DIFFERENCE IN A PERSON, RIGHT, AND THEIR INTENTIONS.

AND SO I'M SO HAPPY TO BE IN THE PRESENCE OF SO MANY WELL-INTENTIONED PEOPLE.

THANK YOU FOR ALL THE WORK.

NOBODY GETS INTO THIS BUSINESS OF HELPING SENIORS TO GET RICH.

YOU GET INTO IT TO DO THE RIGHT THING.

>> THAT'S RIGHT.

>> PELAEZ: I APPRECIATE YOU GUYS BEING HERE.

THANK YOU.

>> THANK YOU VERY MUCH.

THANK YOU.

>> MAYOR NIRENBERG: I'LL CLOSE BY JUST SAYING THANK YOU FOR EPITOMIZING WHAT COMPASSION MEANS IN OUR COMMUNITY. WE DON'T FORGET OUR SENIORS, WE DON'T FORGET THOSE WHO ARE AT THE END OF THEIR LIVES, AND BEING ABLE TO PROVIDE THEM THE COMFORT AND CARE AND COMPASSION THAT THEY SO RICHLY DESERVE, REGARDLESS OF THE CIRCUMSTANCES, IS EXACTLY WHAT I KNOW PEOPLE IN MY LIFE WHO DO HOME CARE AND HOSPICE TO BE ALL ABOUT.

SO THANK YOU FOR BEING HERE, AND WE ARE GRATEFUL TO BE ABLE TO RECOGNIZE YOUR WORK.

>> THANK YOU VERY MUCH.

MAYOR.

THANK YOU.

>> MAYOR NIRENBERG: I THINK WE'LL DO A PHOTO FROM UP THERE

* This transcript was compiled from uncorrected Closed Captioning.