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[00:00:03]

>> CLERK: GOOD AFTERNOON, WELCOME TO THE CITY COUNCIL B SESSION OF NOVEMBER THE 28TH, 2018.

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

>> MAYOR NIRENBERG: GOOD AFTERNOON, EVERYONE.

WELCOME TO OUR CITY COUNCIL B

[1. Briefing on draft recommendations for the 2019-2020 Tax Abatement Guidelines. [Carlos Contreras, Assistant City Manager; Rene Dominguez, Director, Economic Development]]

SESSION AGENDA.

THE TIME IS 2:16 P.M.

THANK YOU FOR YOUR PATIENCE.

WE HAVE ONE ITEM ON THE AGENDA REGARDING THE 2019-2020 TAX ABATEMENT GUIDELINES, SO I'LL START WITH RENE.

>> DOMINGUEZ: THANK YOU, MAYOR.

GOOD AFTERNOON, EVERYONE.

THERE'S SHERYL.

BEFORE I START UP, I DO WANT TO INTRODUCE A FEW FOLKS BECAUSE WE'VE GONE THROUGH A LOT OF EFFORT AND TIME TO PUT THESE TOGETHER.

I WANT TO ACKNOWLEDGE MY STAFF, A LOT OF THEM ARE HERE.

JESSICA HARRIS, OUR ASSISTANT DIRECTOR OF INDUSTRY HAS BEEN HEAVILYEN IMAIJED IN THIS PROCESS AND HER STAFF.

ALEX LOPEZ IS HERE FROM THE EQUITY OFFICE.

YOU'LL SEE THAT THIS ADDRESSES SOME EQUITY ISSUES THAT WE'VE BEEN WORKING ON.

AND THEN WE ALSO ENGAGED SOME CONSULTANTS AS PART OF THIS WORK FROM EPS, ANDREW, THE MANAGING DIRECTOR, AND MATT PROSER, THEIR VICE PRESIDENT.

I JUST WANT TO ACKNOWLEDGE THAT ALL OF THESE INDIVIDUALS PLAYED AN ACTIVE ROLE IN PUTTING TOGETHER WHAT YOU KIND OF SEE TOGETHER.

I ALSO WANT TO GIVE A LOT OF CREDIT AND APPRECIATION TO THE EWDC, THE ECONOMIC AND WORKFORCE DEVELOPMENT COMMITTEE.

WE'VE BEEN AT THIS SINCE MARCH, WE'VE PRESENTED SEVERAL TIMES TO THEM, AND WE'VE GOTTEN A LOT OF GREAT FEEDBACK FROM THE EWDC.

SO BEFORE I START, I DO WANT TO PROVIDE A LITTLE BIT OF CONTEXT.

OOPS.

ON WHAT WE'LL BE PRESENTING TODAY.

AS I MENTIONED, THIS EFFORT BEGAN IN EARNEST BACK IN MARCH WHEN WE, ALONG WITH UTSA REALLY PROVIDED A LOT OF CONTEXT AND PROVIDED DISCUSSION AROUND THE NATIONAL AND LOCAL TOPIC OF ECONOMIC SEGREGATION.

AT THE TIME, SAN ANTONIO WAS BEING DISCUSSED QUITE HEAVILY, AND STILL IS, IN TERMS OF ECONOMIC SEGREGATION AROUND INCLUSIVE ECONOMIC DEVELOPMENT.

AT THE SAME TIME, FROM A POLICY STANDPOINT, AS YOU KNOW, EQUITY ASSESSMENTS ARE HAPPENING WITHIN THE DEPARTMENT, SO HOW WE WERE GOING TO EMBED AN EQUITABLE APPROACH INTO OUR PROGRAMMING WAS ALSO ADDITIONAL CONTEXT TO PROVIDE YOU, SO IT WAS THOSE TWO THINGS THAT WE INTRODUCED IN MARCH TO EWDC AND PROVIDED A LOT OF CONTEXT.

WE ACTUALLY USED THE DISTRESSED COMMUNITY INDEX STUDY BY THE INNOVATION GROUP TO PROVIDE ADDITIONAL CONTEXT.

THIS STUDY, BASICALLY, HIGHLIGHTS THOSE AREAS OF SAN ANTONIO THAT ARE EXPERIENCING ECONOMIC GROWTH, ECONOMIC PROSPERITY AND THOSE THAT AREN'T.

ADRIAN PEREZ, IN MY OFFICE, WHO'S GOING TO PRESENT A LITTLE BIT OF THE PRESENTATION IS GOING TO GO INTO IT A LITTLE MORE IN DEPTH WITH YOU IN A FEW MINUTES, BUT BASICALLY THIS STUDY TOOK SEVEN DIFFERENT DATA POINTS, SEVEN DIFFERENT METRICS THAT MEASURES THE ECONOMIC VITALITY, THE WELL-BEING OF COMMUNITIES AND IT COMPARES TO THEM NATIONALLY.

SO THIS IS A NATIONAL INDEX.

AND IT TAKES THESE SEVEN METRICS, IT CREATES AN AVERAGE AND THEN CONVERTS IT TO A PERCENTAGE, AND THE IDEA HERE IS THE AREAS IN RED AND ORANGE ARE THE MOST DISTRESSED IN TERMS OF A NATIONAL VIEW.

YOU KNOW, THE FUNNY THING IS, WHEN WE'RE PRESENTING THIS, BECAUSE WE'VE BEEN AT THIS FOR A WHILE, THIS MAP WAS NO BIG SURPRISE TO EWDC, IT WAS NO BIG SURPRISE TO THOSE IN THE COMMUNITY.

THIS IS THE SAME MAP THAT YOU-ALL SEE WHEN WE TALK ABOUT HEALTH OUTCOMES, WHEN WE TALK ABOUT INFANT MORTALITY, WHEN WE TALK ABOUT DOMESTIC ABUSE, WHEN WE TALK ABOUT POVERTY.

SO I THINK IT WAS A VERY RELATABLE MAP.

POVERTY, IN PARTICULAR, IS WHAT WE KIND OF LANDED ON, AND YOU'RE GOING TO SEE THAT EMBEDDED IN OUR PRESENTATION IN A LITTLE BIT.

THESE AREAS ARE THE AREAS WHERE RESIDENTS STRUGGLE TO ACCESS ECONOMIC OPPORTUNITY.

THIS MAP HIGHLIGHTS THOSE THAT ARE MOST DISTRESSED, LIKE I SAID, THOSE EXHIBITING A SCORE OF 80 AND ABOVE.

THE BIG TAKEAWAY IS THAT AROUND 400,000 PEOPLE, 22% OF THE POPULATION, LIVE IN THESE AREAS, SO THIS SITUATION NOT ONLY CREATES INDIVIDUAL -- YOU KNOW, LESS INDIVIDUAL OPPORTUNITY FOR OUR RESIDENTS, BUT IT REALLY IS

[00:05:03]

AN ECONOMIC DEVELOPMENT ISSUE.

IT HINDERS OUR REGIONAL GROWTH, IT DEPRIVES PEOPLE FROM SKILLED WORKERS, IT INHIBITS POTENTIAL INNOVATORS, AND AS YOU ALL KNOW, THERE IS A COST INDIRECT AND DIRECT TO BUSINESS BECAUSE OF THIS SITUATION.

THEY STRUGGLE TO FIND SKILLED WORKERS.

SO WE WANTED TO CONTINUE OUR ECONOMIC DEVELOPMENT STRATEGY THOSE STRATEGIES YOU'VE SEEN MOST RECENTLY OVER THE LAST COUPLE OF YEARS AS WE WORK WITH JENNA, STRATEGIES AROUND TARGETED INDUSTRY, AROUND WAGES, AROUND HIGH WAGES IN PARTICULAR, BUT WE ALSO WANTED TO FIND WAYS TO PROVIDE OPPORTUNITY TO MORE PEOPLE PARTICULARLY IN THESE AREAS.

SO THIS RECOMMENDATION IS NOT NECESSARILY AN INCLUSIVE GROWTH RECOMMENDATION; THIS IS REALLY A GROWTH STRATEGY FOR US, AND IT BUILDS UPON THE WORK THAT WE'VE BEEN DOING WITH EDF OVER THE LAST FIVE YEARS IN TERMS OF TARGETED INDUSTRY GROWTH.

ADDITIONALLY TO PROVIDE A LITTLE BIT MORE OF CONTEXT, WE REALLY SAW THE SA TOMORROW PLANNING PROCESS AS A GREAT OPPORTUNITY FOR US.

POVERTY AND SOME OF THE ISSUES THAT I OUTLINED, YOU KNOW, WE DIDN'T GET HERE OVERNIGHT, AND WE'RE NOT GOING TO FIX THESE ISSUES OVERNIGHT, BUT THE REGIONAL CENTER CONCEPT REALLY PROVIDES US AN OPPORTUNITY TO LAYER OUR ECONOMIC DEVELOPMENT INCENTIVES WITH THOSE FUTURE SUBAREA PLANS.

AND THOSE SUBAREA PLANS HAVE TRANSPORTATION AS PART OF IT, HAVE SUSTAINABILITY, HAVE INFRASTRUCTURE, HAVE HOUSING, SO WE REALLY SEE THIS AS A GREAT OPPORTUNITY TO EVENTUALLY COORDINATE ALL THOSE EFFORTS.

AS I MENTIONED THESE SUBAREA PLANS WILL BE ADOPTED OVER THE NEXT THREE TO FIVE YEARS AND WE INTEND ON INCORPORATING THESE REGIONAL CENTERS INTO OUR GEOGRAPHIC FOCUS.

SO LET'S GET TO WHAT WE ARE HERE TO TALK ABOUT, WHAT WE ARE GOING TO PRESENT TO YOU TODAY, THE TAX ABATEMENT POLICY.

THESE -- THIS IS A GREAT OPPORTUNITY, WE THOUGHT, FOR SEVERAL DIFFERENT REASONS.

ONE OF THE REASONS IS, IT'S THIS POLICY THAT REALLY OUTLINES WHAT YOU-ALL FIND AS IMPORTANT IN TERMS OF WHAT WE WILL PROVIDE A TAX ABATEMENT FOR.

IT OUTLINES THE WAGES, THE TARGETED INDUSTRIES, THE GEOGRAPHIES THAT ARE IMPORTANT TO US FROM A POLICY STANDPOINT IN ORDER TO OFFER TAX ABATEMENTS.

THEY ALSO HAVE TO BE RENEWED EVERY TWO YEARS, SO IT REALLY GIVES US AN OPPORTUNITY TO PRESENT THIS NEW CONCEPT TO YOU, BUT HAVE A WAY OF COMING BACK AND CHECKING IN WITH YOU, BECAUSE STATE LAW REQUIRES US TO COME BACK AND REVIEW GUIDELINES EVERY TWO YEARS.

IN ADDITION TO THAT, LET ME PROVIDE A LITTLE BIT MORE CONTEXT.

IN TERMS OF WHAT WE DO WITH THE TAX ABATEMENT, WE'RE ONLY TALKING ABOUT TWO OR THREE TAX ABATEMENTS PER YEAR.

AND IT'S A TAX ABATEMENT THAT ALLOWS US TO ABATE THE TAXES OF NEW INVESTMENT.

THESE ARE PROJECTS THAT ARE COMPETITIVE.

THESE ARE PROJECTS THAT WE WORK WITH, WITH JENNA, THAT COME TO THE TABLE THAT ARE LOOKING AT SAN ANTONIO, BUT ARE ALSO LOOKING AT OTHER COMMUNITIES, ALBUQUERQUE, OKLAHOMA CITY, SAN JOSE, WE'RE IN A COME COMPEN FOR THESE PROJECTS.

THE ACTUAL MECHANICS OF A TAX ABATEMENT, WE IN ESSENCE CAN ABATE AROUND 5600 PER MILLION DOLLARS OF VALUE.

THIS IS INVESTMENT THAT IS NOT HERE, AND WE CANNOT ABATE PER STATE STATUTE INVESTMENT THAT'S ALREADY ON THE BOOKS.

SO THIS IS NEW INVESTMENT.

SO WITH THAT, WE'RE GOING TO JUMP RIGHT INTO SOME OF THE NATIONAL FINDINGS, AND THEN WE'RE GOING TO PRESENT TO YOU THE GUIDELINES THAT WE ARE RECOMMENDING MOVING FORWARD IN 2019.

ADRIAN PEREZ IS OUR POLICY ADMINISTRATOR.

EARLY ON, ON THE SA TOMORROW PROCESS, I SAW A REAL OPPORTUNITY TO ASSIGN A SPECIFIC STAFF MEMBER TO INCORPORATE SA TOMORROW.

AND WITH THE EQUITY DISCUSSIONS TAKING PLACE, HE WAS THE IDEAL POLICY ADMINISTRATOR TO PUT THIS ALL TOGETHER.

HE'S BEEN WORKING HAND-IN-HAND WITH EDS TO LOOK AT THESE IDEAS, TO BRING HIM BACK TO THE TEAM TO VET.

SO I'M GOING TO LET ADRIAN KIND OF OUTLINE WHERE WE'RE AT IN TERMS OF THE RECOMMENDATIONS.

>> PEREZ: THANK YOU, RENE.

AS RENE MENTIONED, THIS HAS BEEN A TREMENDOUS TEAM EFFORT.

WE'VE WORKED WITH EPS -- IN AUDIO] -- WE'VE DONE A GOOD POOL PERSPECTIVE ON THIS.

SO AS RENE MENTIONED WHEN WE BROUGHT EPS ON AND THROUGH OUR WORK WITH THE EWDC, WHAT WE'RE REALLY AIMING TO DO IS BRING IN AN IMPARTIAL THIRD-PARTY, A CONSULTANT WHO COULD HELP US LOOK AROUND THE COUNTRY AND IDENTIFY BEST PRACTICES.

WE'RE TALKING ABOUT AROUND ECONOMIC DEVELOPMENT TOOLS, SO WE WANT TO BE VERY CLEAR ABOUT

[00:10:02]

THAT, IN WHAT'S GOING ON AROUND THE COUNTRY AS A NATIONAL TREND IS TO FOCUS ON THE GROWTH ACTORS AND THE GROWTH TOOLS THAT A COMMUNITY'S USING.

WHEN I SAY GROWTH ACTORS, THE FOLKS THAT ARE FOCUSED ON GROWING THE ECONOMY, THE TOOLS THAT HAVE BEEN KIND OF SILENT ON THAT ALMOST EXCLUSIVELY THAT TIME.

SO WHO'S USING THOSE TOOLS.

AND SO THAT'S WHAT A LOT OF WHAT EPS DID FOR US.

THEY LOOKED AROUND THE COUNTRY AND BROUGHT THAT TOGETHER FOR US.

THEY ALSO HELPED US REACH OUT TO SIGHT SLEK FORS AROUND THE -- SELECTORS AROUND THE COUNTRY TO GET SOME PERSPECTIVE OF HOW LONG WE COULD GO WITHOUT AFFECTING THE COMPETITIVE OF THE TOOL.

THESE TOOLS ARE REALLY USED FOR US TO COMPETE TO GET NEW LARGE PROJECTS INTO SAN ANTONIO.

SO THERE IS A POINT OF DIMINISHING RETURNS WHEREBY A COMPANY MAY LOOK AT WHAT PEOPLE HAVE LAYERED ONTO A POLICY AND SAY, YOU KNOW WHAT, I WAS GOING TO CONSIDER SAN ANTONIO FOR 500 JOBS, I'LL JUST GO MAYBE UP THE ROAD A LITTLE BIT BECAUSE THEY DON'T REQUIRE ANY OF THAT OF ME AND I'LL STILL USE THE INFRASTRUCTURE AND THE WORKFORCE FROM THAT AREA.

SO WE WANT TO BE VERY CAREFUL, BE VERY TACTFUL AND BALANCED IN TERMS OF HOW WE WORKED WITH THE PRIVATE SECTOR, THE SIGHT SELECTORS AND REALLY BALANCE THESE TWO ELEMENTS.

EPS HELPED US DO A LOT OF THIS WORK. AND THIS IS REALLY THE FOUNDATION OF THE RFP THAT WE PUT OUT AND SECURED FROM EPS.

SO GIVEN THAT, WE'LL SHARE A LITTLE BIT OF THE FINDINGS.

EPS IS PUTTING OUT A REPORT, THE FIRST HALF WILL BE AVAILABLE THIS FRIDAY.

THE NEXT HALF WILL BE AVAILABLE NEXT FRIDAY.

BUT WE'RE GOING TO SHARE JUST A COUPLE OF FINDINGS THAT WE THOUGHT WERE INTERESTING FROM A VERY HIGH LEVEL.

THE FIRST THING IS THAT WHEN WE LOOKED AT THE DISTRESSED COMMUNITIES INDEX AS RENE POINTED OUT, WE COULD USE IT AS KIND OF A PROXY TO IDENTIFY HOW DIFFERENT METROS WERE DOING POST RECESSION.

POST RECESSION, THE REASON THAT'S IMPORTANT BECAUSE AT THE END OF THE RECESSION TO 2015, THAT IS A POINT IN TIME WHERE THE COUNTRY IS ADDING JOBS, THAT'S WHEN JOBS ARE COMING BACK TO THE COUNTRY.

SO IT'S A GOOD TIME TO LOOK TO SEE HOW IS GROWTH AND PROSPERITY SHARED AROUND DIFFERENT GEOGRAPHIES.

SO THROUGH THE DISTRESSED COMMUNITIES INDEX WE'RE ABLE TO GET A DISTRESSED SCORE FOR EACH OF THESE DIFFERENT METROS.

WHAT WE FOUND WAS FOR THOSE METROS WHOSE DISTRESSED SCORE WAS A LITTLE HIGHER, SAY BALTIMORE OR CINCINNATI, THEIR ECONOMIC DEVELOPMENT POLICIES REALLY REFLECTED A WIDE-OPEN PERSPECTIVE.

THEY'RE REALLY TRYING TO STEM THE TIDE OF THE JOB LOSS THAT THEY'RE SEEING EVEN AT A TIME THAT THE COUNTRY IS GAINING JOBS.

SO WE'VE GOT CIRCLED THERE THAT NEGATIVE 1%.

THEY'RE STILL SHEDDING JOBS, SO THEIR POLICIES REFLECT A FOCUS ON TRYING TO JUST STEM THE TIDE, RIGHT? ON THE OPPOSITE END OF THE SPECTRUM, WE SEE METROS THAT ARE PERFORMING EXTREMELY WELL, THEIR ECONOMIES HAVE REVVED A LITTLE TOO HOT.

THEY ARE DEALING WITH MUCH MORE ACUTE ISSUES, OUR NEIGHBOR TO THE NORTH IN AUSTIN, RIGHT, SO THEY'RE DEALING WITH REAL GENTRIFICATION ISSUES, PEOPLE WHERE PEOPLE ARE LIVING THE CITY BECAUSE THEY CAN'T AFFORD TO LIVE THERE NO MORE.

THEY'RE NOT WORRIED ABOUT LOSING A TECH COMPANY, THEY HAVE A LOT OF THOSE KIND OF JOBS.

THEY'RE FOCUSED ON THE ACUTE ISSUES THAT THEY'RE FACING RIGHT NOW.

WHAT WE SAW IN SAN ANTONIO IS THAT WE FELL SORT OF IN THE MIDDLE OF THE PACK WITH THAT, SO WHAT YOU'LL SEE ON CHANGE IN BUSINESS, CHANGE IN EMPLOYMENT, RELATIVELY HEALTHY.

SO POST RECESSION, WE'RE GAINING THOSE JOBS BACK BUT WE STILL HAVE THAT POVERTY RATE.

SO IT CONTEXTUALLY GAVE US A SENSE OF IN TERMS OF ECONOMIC DEVELOPMENT POLICY IN SAN ANTONIO, WE REALLY HAVE TO KEEP OUR EYE ON THE BALL FOR TARGET INDUSTRIES, THOSE HIGH-WAGE JOBS, WE STILL HAVE TO PURSUE THOSE IN EARNEST WITH ALL OF OUR EFFORTS, THE WAY WE'VE BEEN DOING IN THE PAST 10 YEARS, HOWEVER WE DO NEED TO START FOCUSING IN PROVIDING MORE INROADS FOR MORE PEOPLE AS RENE POINTED OUT, PLACE MATTERS.

SHOULD REFLECT THAT WE'RE SEEING ACROSS THE COUNTRY HERE.

SO THAT'S THE FIRST PIECE.

THE NEXT PIECE IS AS WE LOOKED AROUND AT DIFFERENT PROGRAMS, WE SAW A COUPLE OF DIFFERENT ELEMENTS THAT WE THOUGHT WERE INTERESTING.

TIERED INCENTIVES, A LOT OF CITIES ARE LOOKING AT DIFFERENT FACTORS TO CONSIDER IN TERMS OF HOW MUCH OF AN INCENTIVE THEY'LL PROVIDE, IF YOU CREATE THIS TYPE OF JOB WE'LL GIVE YOU LESS, OVER HERE, WE'LL GIVE YOU MORE.

THERE'S A LITTLE BIT OF PUSHBACK FROM THE GEOGRAPHIES ON THE SIGHT SELECTOR SIDE.

WE'RE SEEING A LITTLE BIT OF WIN/WIN PROJECTS.

IF A NEW PROJECT COMES INTO THEIR COMMUNITY THEY'RE LOOKING AT THE REVENUE STREAMS GENERATED BY THAT PROJECT AND SAYING CAN WE CREATE AN INSTANCE WHERE NO WAY A PROJECT CAN COME IN AND NOT BENEFIT THE DISTRESSED COMMUNITY.

LET'S GUARANTEE THAT A PIECE OF THE REVENUE STREAM GOES TO THE DISTRESSED COMMUNITY.

WE THOUGHT THAT WAS A PRETTY INTERESTING CONCEPT THAT WAS OUT THERE IN PLAY.

HIRING FROM TARGETED WORKER POOLS, INTEREST IN WORKING WITH NONPROFITS AND OTHER FOLKS WHO ARE PROVIDING PRE-SCREENING OR

[00:15:02]

CANDIDATES INTO JOBS, THAT WAS SOMETHING OF HIGH INTEREST.

AND MORE IMPORTANTLY THE NEXT POINT, THE TRAINING AND EDUCATION.

WHAT WE'RE SEEING IS A LOT MORE COMMUNITIES REALIZE THAT IT'S NOT JUST ENOUGH TO GIVE SOMEBODY A SCHOLARSHIP, YOU HAVE TO FOCUS ON THE WHOLE PERSON IN TERMS OF THEIR EXPERIENCE.

YOU CAN GIVE THEM A SCHOLARSHIP, BUT IF THEY HAVE TRANSPORTATION INSECURITY, HOUSING INSECURITY, FOOD INSECURITY, THOSE OUTCOMES ARE SLOWED, GREATLY SLOWED, AND SO WORK WITH NONPROFITS TO PROVIDE WRAP AROUND SERVICES IS SOMETHING FOLKS ARE REALLY STARTING TO WAKE UP TO AND TRY TO FIGURE OUT HOW TO PUT TOGETHER.

FINALLY WITH GEOGRAPHY, MANY COMMUNITIES WOULD PICK A NUMBER OF VARIABLES TO IDENTIFY WHICH AREAS WERE DISTRESSED, SO THAT COULD BE ANYTHING FROM CODE ENFORCEMENT ISSUES TO LOOSE DOGS ET CETERA, BUT WHEN WE SAW PROGRAMMATIC INTERVENTIONS THEY WEREN'T NECESSARILY MOVING THE NEEDLE.

THE EXAMPLE WE GIVE, IF YOU HAVE A GEOGRAPHY THAT YOU'RE TRYING TO CREATE EMPLOYMENT IN AND YOU DROP A PROJECT INTO THAT GEOGRAPHY, THE FOLKS IN THAT NEIGHBORHOOD MAY NOT HAVE THE EDUCATION TO COMPETE FOR THOSE JOBS SO YOU REALLY HAVEN'T IMPACTED THE RESIDENTS IN THAT JOB.

YOU PUT A PROJECT THERE, IT'S GREAT, IT'S DEFINITELY POSITIVE.

BUT CONNECTING ALL OF THOSE ELEMENTS IN TERMS OF WHAT WE'RE TRYING TO CHANGE IS SOMETHING WE WANTED TO BE COGNIZANT OF AS WE WENT FORWARD WITH OUR RECOMMENDATIONS.

SO SOME OF THOSE ARE THE HIGH-LEVEL FINDINGS THAT SHAPED THE RECOMMENDATIONS COMING UP.

SO WITH THAT, I'LL GO AHEAD AND TOUCH BASE ON THE ACTUAL RECOMMENDATIONS HERE.

SO TO REITERATE, AS WE WERE PUTTING THESE TOGETHER, SOME OF THE GUIDING PRINCIPLES THAT WE WERE REALLY LOOKING AT WERE THE FACT THAT WE HAVE TO KEEP OUR EYE ON THE BALL FOR THOSE 21ST CENTURY JOBS, FOCUS ON INROADS, PILLED A POLICY THAT -- BUILD A POLICY THAT FOCUSES ON THE PROJECT IN A BALANCE WAY THAT BUSINESS CAN MOVE LOCK STEP WITH.

WE WANTED TO MAKE SURE THAT WE FOCUSED ENTIRELY ON THE FACT THAT WHAT WE'RE HEARING AND WHAT I THINK EVERYBODY COULD AGREE WITH IS THAT SKILL OR TRAINING OR WORKFORCE TRAINING IS REALLY THE FUEL FOR SOCIOECONOMIC MOBILITY.

THAT'S THE VALUE FOR EVERYBODY.

AND THEN FINALLY AS WE DEVELOPED THIS, WE DIDN'T WANT TO COME TO COUNCIL WITH A NEW AS K UNTIL WE COULD LEGITIMATELY LOOK AT ALL OF OUR PROGRAMS, HOW CAN WE POINT THE ASSETS THAT COUNCIL HAVE GIVEN US AND POINT THEM IN THE RIGHT DIRECTION.

AND ONCE WE HAD EVERYTHING GOING TOGETHER, IF THERE WAS A NEW ASK TO BE HAD, WE WANTED TO GET IT ON THE TABLE NOW.

THESE ARE SOME OF THE GUIDING PRINCIPLES THAT SHAPED OUR ULTIMATE RECOMMENDATION.

SO JUMPING RIGHT INTO SOME OF THE UPDATES TO THE TAX ABATEMENT POLICY.

THE FIRST THING WE'RE CHANGING IS THE GEOGRAPHY.

WE'RE GOING TO FOCUS ON WHAT WE NOW CALL THE INCLUSIVE GROWTH AREA, THIS WILL BE MOVING AWAY FROM THE ICRIP WHICH WE USE CURRENTLY WHICH IS KIND OF ONE GEOGRAPHY THAT HOUSED BOTH OUR HOUSING AND ECONOMIC POLICIES, WE'RE NOW PULLING THAT OUT AND FOCUSING ON THE INCLUSIVE GROWTH AREA.

THIS GEOGRAPHY IS MADE UP OF THREE ELEMENTS, ZIP CODE TABULATION AREAS WITH 20% OR GREATER POVERTY.

OPPORTUNITY ZONES, AND REGIONAL CENTERS.

SO WHEN YOU TAKE THOSE THREE MAPS AND YOU PUT THEM TOGETHER, THAT IS NOW THE IGA, INCLUSIVE GROWTH AREA.

WITHIN THE ZIP CODE TABULATION AREAS WE'VE ALSO IDENTIFIED TWO ADDITIONAL TIERS.

TIER 2 AND TIER 3, WHICH REPRESENT ZIP CODES WITH 30% OR GREATER AND 40% OR GREATER OF THEIR POPULATION BELOW THE FEDERAL POVERTY LINE.

THE REASON WE DID THAT IS WE WANTED GEOGRAPHY THAT FOCUSES THE CONVERSATION AROUND POVERTY BUT THEN FOCUSES ON NOT ONLY PROJECTS BUT WHERE ARE THE PEOPLE THAT WE WANT TO PERFORM AND REALLY LOOK AT OUTREACH FOR JOB TRAINING, JOB OPPORTUNITIES, RIGHT? SO THIS MAP DOES BOTH OF THOSE THINGS FOR US AND HELPS US KIND OF SET SOME PRIORITY THERE AND SOME FOCUS.

WE WANT TO DISAGGREGATE AND OPEN UP THE CONVERSATION ABOUT HOW WELL SAN ANTONIO'S DOING BY DISAGGREGATING BY GEOGRAPHY, SO WE CAN HAVE A CONVERSATION ABOUT WHAT'S GOING ON IN SPECIFIC GEOGRAPHIES.

SO THAT'S THE INTENT BEHIND THE MAP.

WE DID HAVE CONVERSATIONS ABOUT CENSUS TRACKS VERSUS ZIP CODES, ET CETERA, AND WITH THE UPCOMING DICENNIEL CENSUS, WE'LL MAYBE UPDATE THIS AGAIN.

IF WE GET FANTASTIC DATA FROM THE SCENE TUS THAT BETTER INFORMS WHERE WE SHOULD FOCUS, MAYBE WE'LL MOVE THAT DIRECTION.

RIGHT NOW THE ZIP CODES MADE SENSE, PEOPLE MAY KNOW WHERE THEIR ZIP CODE IS, NOT A LOT OF FOLKS KNOW WHERE THEIR CENSUS TRACK IS, SO WE FELT IT WOULD KIND OF RESONATE.

THAT'S THE FIRST NEW CHANGE, THE GEOGRAPHY.

WE'LL BE COVERING INDUSTRY PROJECTS, THESE ARE THE TRADITIONAL PROJECTS THAT RENE BRINGS FORWARD TO EXECUTIVE EXIT -- COMMITTEE AND THAT YOU ALL CONSIDER ON A REGULAR BASIS.

WE ONLY APPROVE TWO OR THREE OF

[00:20:02]

THESE TAX ABATEMENTS PER YEAR.

WITHIN THESE INDUSTRY PROJECTS THERE IS ACCEPTING UPWARDS OF $60 MILLION, HAVE MORE THAN 600 JOBS ASSOCIATED WITH THEM, AND SIGNIFICANTLY SIGNIFICANT OR EXCEPTIONAL PROJECTS ARE THINGS WE'RE MAYBE WILLING TO NEGOTIATE ON THE LENGTH OF THE TAX ABATEMENT.

ADDITIONALLY A NEW CHANGE IS WE WANT TO FOCUS ON PROVIDING THAT EXCEPTIONAL PROJECTS CATEGORY TO PROJECTS WHO AGREE TO HIRE FROM TIERS 2 AND 3 OF THE INCLUSIVE GROWTH AREA.

SO IF SOMEBODY APPROACHES US AND SAYS I'M WILLING TO FOCUS ON THOSE AREAS FOR HIRING, WE'D CONSIDER THAT EXCEPTIONAL, BECAUSE THAT IS EXCEPTIONAL.

THAT IS A CHALLENGE FOR AN EMPLOYER, THAT'S NOT A SMALL ASK.

AND SO WE WANTED TO CONSIDER THAT AS POTENTIALLY EXCEPTIONAL.

ADDITIONALLY IF THEIR HEADQUARTERS WE'D LIKE TO PURSUE THEM AS AN EXCEPTIONAL PROJECT.

IF THEIR CEOS ARE HERE, THEY'RE GROWING HERE, WE WANT TO HAVE A CONVERSATION WITH THEM ABOUT THE TAX ABATEMENT.

SO INDUSTRY PROJECTS AND THE NET NEW PROJECT THAT WE ARE SUGGESTING OR PROJECT TYPE CALLED AN UPSCALE PROJECT WHICH IS FOCUSED ON WORKFORCE DEVELOPMENT.

SO LET'S JUMP INTO INDUSTRY PROJECTS.

AND THE ELIGIBILITY CHANGES.

ON THIS SLIDE, WHAT YOU'LL SEE IS ON THE LEFT, THE WAY THE POLICY'S CURRENTLY FRAMED, WE'RE RECOMMENDING ON THE RIGHT.

SO THE FIRST ELIGIBILITY REQUIREMENT IS $10 MILLION OR 50 NEW JOBS.

PREVIOUSLY WE HAD THE MINIMUM INVESTMENT DOWN AT A MILLION DOLLARS INSIDE THE ICRIP AND THAT WAS REALLY KIND OF A TEST BALLOON TO SEE IF THERE WERE TAKERS AT THAT LEVEL OF INVESTMENT, AND REALLY THERE WEREN'T.

THAT MAKES A LOT OF SENSE, THE CITY'S GOING TO BE IN MY BUSINESS FOR 10 YEARS OR 16 YEARS, SO WE'RE SAYING $10 MILLION, 50 NEW JOBS.

THE LIVING WAGE AND THE INDUSTRY WAGE REMAIN THE SAME, THE PRACTICES REMAIN THE SAME.

ESSENTIALLY WE'RE SAYING ALL JOBS HAVE TO MEET THE LIVING WAGE, WHICH IS 12.07.

THAT IS THE POVERTY LEVEL AS DEPARTMENTED BY THE HEALTH AND HUMAN SERVICES AND THEY MUST MEET 70% OF ALL OF THEIR EMPLOYEES IN AN ALL-INDUSTRY WAGE OF 16.65.

SO THAT REPRESENTS THE AVERAGE OF ALL THE WAGES HERE IN SAN ANTONIO, SO THE PHILOSOPHY IS IF YOU'RE BRINGING JOBS IN, WE WANT TO BE PULLING THAT AVERAGE UP.

NOW, WE'VE HAD A LOT OF GREAT CONVERSATIONS ABOUT THESE WAGES IN PUBLIC MEETINGS THAT WE'VE HAD, AND WE'VE ALWAYS -- YOU KNOW, WHAT WE TRY TO DO IS MAKE CLEAR TO EVERYBODY, THESE ARE NOT ASPIRATIONAL WAGES FOR SAN ANTONIO.

WE'RE NOT SAYING THIS IS WHAT WE WANT.

THESE ARE THE FLOORS.

WHAT WE'RE SAYING IS IF A PROJECT IS CONSIDERING SAN ANTONIO, THESE ARE THE FLOORS.

YOU CANNOT PAY ANY LESS THAN 12.07.

WE'RE GIVING YOU A 30% MARGIN AND FROM THAT POINT, 70% OF YOUR EMPLOYEES HAVE TO MAKE 16.65.

SO WHAT WE'RE DOING IS SAYING WHEN A PROJECT LOOKS AT SAN ANTONIO AND IF IT'S CREATING 1,000 JOBS, IT WILL POTENTIALLY HAVE LOWER SKILLED, SEMISKILLED EMPLOYEES THAT MAYBE DON'T MAKE THE $16 AN HOUR, THAT'S OKAY.

IF YOU'RE CREATING 1,000 JOBS, YOU'RE GOING TO HAVE SOME OF THOSE.

SO WE'RE CREATING A LITTLE BIT OF SPACE FOR THEM TO CONSIDER SAN ANTONIO.

WE WANT TO GET AS MANY LOOKS AS WE CAN AT AS MANY GOOD PROJECTS THAT WE PROBABLY CAN BECAUSE WHAT WE REALLY WANT ARE THE $50,000 A YEAR AND THE $70,000 A YEAR JOBS, WHICH WE HAVE SEPARATE TOOLS FOR.

THE ECONOMIC INCENTIVE FUND FOCUSES ON THE HIGH HAIF- -- HIGH-WAGE JOBS.

NEXT WOULD BE THE ACTUAL TERM AND PERCENTAGE, EVERY TAX ABATEMENT IS MADE UP OF TERM, HOW LONG WE'LL GIVE THE ABATEMENT AND PERCENTAGE, HOW MUCH OF THE DOLLAR ARE WE GIVING BACK TO THE BUSINESS.

IN TERMS OF TERM, WE'RE OFFERING 10 YEARS INSIDE THE IGA AND SIX YEARS OUTSIDE, UNLESS, OF COURSE, THEY'RE AN EXCEPTIONAL PROJECT.

AND AS FAR AS PERCENTAGE GOES IN THE PREVIOUS POLICY OR EXISTING POLICY WE INDICATE 50 OR 100% AND WE SORT OF LIST ALL THESE VARIABLES, BUT FROM A BUSINESS PERSPECTIVE, THEY'RE NOT QUITE SURE HOW THEY GET FROM HERE TO THERE, AND IT'S REALLY BASED ON STAFF RECOMMENDATION TO COUNCIL.

SO WE TRIED TO CREATE SOME CLARITY FOR THE BUSINESS COMMUNITY TO SAY, WELL, WE'LL SHOW YOU EXACTLY HOW TO GET 50, HOW TO GET 100, AND IT'S BASED ON PRIORITIES.

AS RENE POINTED OUT, THE POLICY ITSELF REALLY ACTS AS A WAY FOR COUNCIL TO COMMUNICATE WHAT THEY'RE WILLING TO ABATE TAXES FOR.

IF THEY MEET TWO OF THE PRIORITIES, 50%.

BEATING THREE GETS THEM 100%.

THE FIRST THREE THAT ALL GO THROUGH HERE ARE YOUR TRADITIONAL TARGETS THAT WE'RE BRINGING FORWARD, TARGET INDUSTRY, CHECK THE BOX THERE.

HIGH WAGES OR 30% OF YOUR EMPLOYEES MAKING MORE THAN $50,000 A YEAR, AND FINALLY, NUMBER THREE, PAID INTERNSHIPS.

SO WHAT WE'D BE ASKING IS THAT THE EMPLOYER RECEIVING THE

[00:25:01]

ABATEMENT TAKE 5% OF THEIR ABATEMENT VALUE AND PUT THAT INTO PAID INTERNSHIPS, RIGHT? HELPING THEM TRAIN THEIR WORKFORCE PIPELINE BUT ALSO PROVIDING LOCAL COLLEGES AND HIGH SCHOOLS THE OPPORTUNITIES TO HAVE THESE KIDS GET A SENSE OF WHAT IT'S LIKE TO WORK IN THAT COP, POTENTIALLY STAYING IN SAN ANTONIO.

SO THAT'S ONE, TWO AND THREE.

RENE'S BEEN PRESENTING TRADITIONAL PACKAGES LIKE THIS AT EXECUTIVE SESSION.

WE'VE BEEN PACKAGING THESE UP PRETTY CONSISTENTLY.

THAT'S KIND OF WHAT WE'VE BEEN DOING.

THE NEXT TWO ELEMENTS ARE REALLY KIND OF THE INCLUSIVE GROWTH PART OF THIS.

NUMBER FOUR IS INCLUSIVE HIRING FROM THE IGA.

IF A COMPANY IS WILLING TO HIRE FROM THE ENTIRE INCLUSIVE GROWTH AREA, THAT YELLOW MAP THAT WE WOULD CONSIDER THAT FOR 35% OF THEIR WORKFORCE, WE'D CONSIDER THAT MEETING ONE OF THOSE PRIORITIES.

AND FINALLY, IF A COMPANY MAYBE MET TWO OF THESE AND NEEDED A THIRD OPTION, NEEDED A WAY TO PARTNER TO COMPETE TO GET THAT 100%, WHAT WE'RE PROVIDING IS A FEW OPTIONS ON PARTNERSHIP OPTIONS.

WHAT WE'RE ASKING IS THAT THE COMPANY LOOK AT 15% OF THEIR ABATEMENT VALUE AND COMMIT TO SPENDING THAT AMOUNT OF MONEY OVER FIVE YEARS ON TWO OF FOUR OPTIONS.

COULD PICK TWO OF THESE FOUR AND SPEND THAT AMOUNT OF MONEY IN FIVE YEARS.

AND THAT WOULD BE THE PARTNERSHIP OPTIONS.

THESE REPRESENT ELEMENTS AND AREAS THAT ARE OBVIOUSLY CONNECTED TO SA TOMORROW, THESE ARE THE OUTER BOUNDS OF WHAT WE'D LIKE TO NEGOTIATE WITH COMPANIES AS THEY COME FORTH AND REALLY COMMUNICATE TO THE COMPANY THESE ARE THE ELEMENTS THAT MATTER TO COUNCIL.

THE FIRST ONE, SMALL, MINORITY, WOMEN, VETERAN, ENTERPRISE UTILIZATION.

SO IF A COMPANY WAS DOING A BRAND-NEW GREENFIELD DEVELOPMENT AND THEY HAD 20% OF THEIR SPEND GO TO CERTIFIED SMALL BUSINESSES, WE WOULD COUNT THAT AS PART OF THAT 15% SPEND.

AS WELL AS THEIR OPPORTUNITY SPEND, EVERY YEAR THEY'RE SPENDING MONEY ON OPERATION, IF THEY DO WITH THAT CERTIFIED SMALL BUSINESSES AND OBVIOUSLY WE HAVE A GREAT S BEDA TEAM, THEY WOULD GET CREDIT FOR THAT.

NUMBER TWO, THE SUSTAINABILITY ELEMENT IS REALLY YOUR WATER, POWER CONSERVATION, AS WELL AS YOUR GOOD DEVELOPMENT, YOUR LEAD LED KIND OF DEVELOPMENT PROCESSES, IF THEY'RE SPENDING DOLLARS ON THAT, WE WANT TO MAKE SURE THAT WE'RE ZEROING THAT AS A PARTNERSHIP OPPORTUNITY.

HEALTH AND WELLNESS, IF THEY'RE PURSUING BLOOD DRIVES OR ANNUAL FLU VACCINATIONS AND REALLY ACCESS TO AN EMPLOYEE ASSISTANCE PROGRAM, SOMETHING THAT FOCUSES ON THE HEALTH OF THE EMPLOYEE, THAT COULD BE CREDITED TO THEM AS WELL IN THIS PARTNERSHIP STRUCTURE.

AND FINALLY COMMUTER BENEFITS, KEEPING CARS OFF THE ROAD, FOCUSING ON AIR QUALITY, IF THEY FOCUS ON PROVIDING VIA BUS PASSES OR DO SOME SORT OF TELEWORK OR COMPRESSED WORKWEEK, WE WOULD ALSO GIVE THEM CREDIT FOR THAT.

SO REALLY PROVIDES THEM A SERIES OF OPTIONS FOR US TO PARTNER ON IF THEY'RE LOOKING TO GAIN THAT ADDITIONAL PRIORITY SCORE.

SO THAT CONCLUDES THE TARGETED INDUSTRY PORTION OF THIS, AND I'LL LET RENE TALK A LITTLE BIT ABOUT SOME OF OUR GUIDING PRINCIPLES AS WE TALK INTO UPSCALE PROJECT.

>> DOMINGUEZ: LET ME TEE UP THIS NEXT SECTION.

WHAT WE REALLY WANTED TO DO WAS DO SOME INNOVATING, SOME CREATIVITY.

WE, IN OUR DEPARTMENT, CLEARLY UNDERSTAND THE VALUE OF UPSCALING AND WORKFORCE DEVELOPMENT.

WE HAVE A WHOLE DIVISION NOW DEDICATED TO THAT, REALLY LEVERAGING THE RESOURCES THAT YOU'VE GIVEN US.

THAT'S ONE OF THE GUIDING PRINCIPLES, SO WE ARE VERY FOCUSED ON CREATING A PROBABILITY THAT DID THAT.

CAN WE POINT THE INVESTMENTS THAT WE ALREADY HAVE IN WORKFORCE ALL IN THAT SAME DIRECTION AND CONNECT THEM TO PROJECTS? SECONDLY, LIKE IT SAID HERE, TRAINING AND EDUCATION, I THINK EVERYONE WOULD AGREE THAT IN TERMS OF ECONOMIC MOBILITY, THE WAY TO PROVIDE THAT IS ADDITIONAL SKILLS.

SKILLS LEAD TO HIGHER EARNINGS AND DRIVING THE MEDIAN INCOME UP.

SO THOSE ARE TWO OF THE GUIDING PRINCIPLES THAT REALLY MOTIVATED US TO DEVELOP SOMETHING REALLY NEW.

WHAT I REALLY LOVE ABOUT IT IS THIS IS NEW TYPE OF PROJECT, BUT THE ACTUAL WORKFORCE FRAMING THAT WE'RE GOING TO SHARE WITH YOU HOW WE'VE CREATED MILESTONES AND ASKED FOR DELEGATE AGENCIES TO HANDOFF PARTICIPANTS AND THE INFORMATION SYSTEM WE CREATED TO HOUSE THE PARTICIPANTS IS SOMETHING WE'RE WORKING ON.

BECAUSE COUNCIL OVER THE LAST COUPLE OF YEARS HAVE ASKED FOR HOW ARE WE MEASURING A RETURN ON OUR INVESTMENT IN TERMS OF OUR WORKFORCE DELEGATE AGENCIES.

SO THIS FRAMEWORK WAS BEING PLACED WHILE AT THE SAME TIME WE TRIED TO DEVELOP OUT THIS NEW PROJECT SO WE'VE BROUGHT THOSE TWO ELEMENTS TOGETHER.

SO ADRIAN, WHY DON'T YOU EXPLAIN THAT PROJECT.

AND THEN WE'RE GOING TO HANDOFF TO JENNA, AND THEN WE'LL TAKE QUESTIONS.

>> PEREZ: THANKS, RENE.

SO AS RENE MENTIONED WHEN WE

[00:30:02]

LOOKED AT THE CONSOLIDATED FUNDING DOLLARS THAT COUNCIL ALLOTS TO OUR DEPARTMENT FOR FOR CUSSING ON WORKFORCE DEVELOPMENT FOR SOME OF THE MOST DISTRESSED FOLKS IN OUR COMMUNITY, OVER THE LAST FEW YEARS WE'VE STARTED TALKING ABOUT AND TRYING TO FIGURE OUT HOW WE COULD PUT TOGETHER A SUITE OF SERVICES REALLY FOCUSED ON A PATHWAY SO THAT WE COULD CONTRACT WITH THESE NONPROFITS SAYING WE WILL MEET OUR RESIDENTS AT THE VERY BEGINNING, WHEREVER THEIR BARRIER IS, STARTING AT LITERACY, AND HAVE A WAY FOR THEM TO MOVE THROUGH MILESTONES THROUGH A TARGETED INDUSTRY JOB, A SELF-SUSTAINING JOB.

SO OVER THE LAST FEW YEARS WE'VE SUCCESSFULLY PUT TOGETHER A SUITE OF NONPROFITS AND WORK WITH THEM TO AGREE THAT, YOU KNOW, LITERACY IS FANTASTIC.

TEACHING SOMEBODY TO READ IS FANTASTIC, BUT WHAT WE REALLY WANT IS A HANDOFF, WE REALLY WANT SOME SUPPORT AND COHESION AROUND HELPING PEOPLE TAKE THAT NEXT STEP TO GET TO A GED, AND THEN MAYBE SOME WORK EXPERIENCE AND THEN POTENTIALLY A TARGETED INDUSTRY CERTIFICATION.

THESE ARE NOT SHORT-TERM GOALS.

THIS IS NOT A SHORT-TERM RIDE IN TERMS OF WORKFORCE DEVELOPMENT SO WE WANTED SOME COHESION ACROSS THIS PROJECT.

EACH OF THESE FOLKS, TO RENE'S POINT, HAS THEIR OWN METRICS, BUT WE'RE ALSO GAUGING WHETHER OR NOT THEY'RE ABLE TO HANDOFF AND THAT'S WHAT WE'RE TRYING TO DO, TRY TO FIGURE OUT IF WE CAN HAVE FOLKS MOVE THROUGH THIS PIPELINE.

WHAT WE'VE DONE OVER THE LAST YEAR, AS RENE POINTED OUT, IS REALLY WORKED WITH THEM TO ADOPT AN INFORMATION SYSTEM THAT WOULD ALLOW THEM TO UPLOAD THE 4,000 FOLKS THAT THEY WORK WITH NOW INTO AN INFORMATION SYSTEM.

AN INFORMATION SYSTEM THAT WILL ALLOW US TO HAVE AN EMPLOYER POST JOBS AND FIND JOB MATCHING WITH THIS POPULATION THAT WE'RE WORKING WITH.

ADDITIONALLY, THE INFORMATION SYSTEM THAT WE'RE PILOTING WOULD HELP US IDENTIFY HOW FOLKS ARE MOVING THROUGH THE MILESTONES, SO THAT FOR THE 4,000 THAT WE'RE INVESTING IN, WE CAN IN REALTIME UNDERSTAND WHERE ARE THE BARRIERS.

IF EVERYBODY'S GETTING TO A GED AND STOPPING, WHY IS THAT? RIGHT? WE CAN HAVE REALTIME INTERVENTIONS BASED ON THE POPULATION THAT WE'RE WORKING ON.

THE ONE-TO-ONE RELATIONSHIP BECOMES INCREDIBLY IMPORTANT IN TERMS OF UNDERSTANDING WHAT BARRIERS ARE BEING DEALT WITH.

ADDITIONALLY THE SYSTEM PROVIDES A WAY FOR THE ACTUAL RESIDENT, THE USER, TO BENEFIT BY BEING A I BELIEVE TO LOG IN.

SO SAY I GET MY GED AND I DECIDE TO GO LIVE LIFE FOR TWO YEARS AND THEN COME BACK TO THIS KIND OF PATH OF SELF-IMPROVEMENT, I' EVE BEEN ABLE TO GO TO A LIBRARY, LOG ON AND IT WOULD SHOW ME POTENTIAL JOB MATCHES THAT MATCH MY SKILLS AND THAT NEXT NONPROFIT, WHAT IS THE NEXT STEP ON MY MILESTONE, WHO CAN HELP ME ON THOSE WRAPAROUND SERVICES.

THIS IS A PILOT THAT WE'RE WORKING WITH NOW, AND SO ALL OF THIS INFRASTRUCTURE OF THE UPSCALE'S PARTNERING NETWORK IS WHAT WE PUT TOGETHER TO ALIGN THE CURRENT INVESTMENT TO REALLY BOLT ONTO THIS NEXT NEW TYPE OF TAX ABATEMENT PROJECT.

THIS NEW TYPE OF TAX ABATEMENT PROJECT IS CALLED AN UPSCALE PROJECT.

WE'RE SUGGESTING DOING A MAXIMUM OF TWO OF THESE A YEAR.

WHAT THIS WOULD CONSIST OF IS AN EMPLOYER WHO IS PAYING AT LEAST THE LIVING WAGE, NOT NECESSARILY ALL-INDUSTRY WAGE BUT AT LEAST THE LIVING WAGE, INVESTING UPWARDS OF $20 MILLION UPSCALING OR CREATING 300 NEW JOBS AND MOST IMPORTANTLY IS WILLING TO INTERVIEW AND HIRE FROM OUR TARGETED POPULATIONS, AND WHEN WE SAY TARGETED POPULATIONS, WHAT WE MEAN IS TIER 2 AND 3 OF THE IGA, RESIDENTS THAT ARE CURRENTLY IN OUR DELEGATE AGENCIES AND THEREFORE IN THE UPN INFORMATION SYSTEM, AND WORKFORCE OPPORTUNITY TAX CREDIT ELIGIBLE INDIVIDUALS, THAT INCLUDES VETERANS, THAT INCLUDES THE FORMALLY INCARCERATED AND THAT INCLUDES PEOPLE THAT HAVE BEEN UNEMPLOYED FOR THE LAST 90 DAYS.

WE DID THIS IN TERMS OF THE WAY THE STATE OF TEXAS DOES THEIR PROGRAM.

IF WE HAVE AN EMPLOYER THAT IS WILLING TO CHECK ALL THOSE BOXES, IT MAKES SENSE FOR THEM, WE WOULD PROVIDE A 10 OR SIX-YEAR TAX ABATEMENT.

THEY'D GET 100% TAX ABATEMENT IF THEY COULD MAINTAIN 35% OF THEIR WORKFORCE FROM THE TARGETED POPULATION.

IF THEY COULD NOT, THAT'S FINE, WE WOULD ASK THEM TO CUT A CHECK FOR HALF THE VALUE OF THE ABATEMENT INTO A WORKFORCE FUND.

THE WORKFORCE FUND WOULD BE ABLE TO BE USED FOR TWO THINGS SPECIFICALLY.

ONE, IF THAT EMPLOYER HAS AN INTERNAL TRAINING PROGRAM, LET'S SAY IT'S AN OSHA CERTIFICATION AND A FORKLIFT OPERATOR CERTIFICATION AND WITH THAT PROGRAM THEY CAN RAISE THE WAGE OF THAT EMPLOYEE, THEY CAN USE THE FUND FOR THAT.

SOME EMPLOYERS NEED 300 PEOPLE TO PUT BOXES TOGETHER AND FILL THEM AND SHIP THEM OFF.

THAT'S OKAY, TOO.

WHAT WE WOULD ASK IS THEY WOULD ALLOW THE UPSCALE PARTNER NETWORK ONSITE TO ASSESS AND ENROLL THEIR WORKFORCE AND THOSE DOLLARS BE USED AS ESSENTIALLY SCHOLARSHIP.

IF ONE OF THEIR EMPLOYEES WANTED TO GET THEIR GED, IT WOULD BE PAID FOR OUT OF THAT FUND.

THE PREPARATION AND THE TESTS COST MONEY, RIGHT? THOSE ARE SOME OF THE BARRIERS THAT THESE FOLKS ARE FACING, AND SO IT WOULD BE USED FOR THAT.

SO FROM THE EMPLOYER'S PERSPECTIVE, IF I HAVE MAYBE AN OPERATION WHERE TURNOVER IS AN ISSUE BECAUSE I'M NOT PAYING, YOU KNOW, A LOT OF WAGES, THIS ACTS AS AN IN-EMPLOYEE RETENTION PROGRAM.

WE NOW HAVE A SITUATION WHERE

[00:35:01]

THAT EMPLOYER IS INVESTING IN THEIR EMPLOYEE'S FUTURE.

SO THE INTENT HERE IS TO TAKE OUR INVESTMENT IN NONPROFITS, TRY TO LOOK AT THIS KIND OF CADRE OF EMPLOYERS THAT IN YEARS PAST OUR POLICIES REALLY HAD NO SPACE FOR.

SO IF YEARS PAST IF A PROJECT CAME AND IT WASN'T PAYING THE ALL-INDUSTRY WAGE, HONESTLY I DON'T KNOW IF WE'D EVEN GET THE CHANCE TO MEET WITH THEM.

THAT WAS A HARD AND FAST RULE.

BUT THOSE EMPLOYERS ARE PROVIDING JOBS THAT FOLKS IN DISTRESSED COMMUNITIES CAN ACCESS NOW AND NEED, BUT WHAT MAKES IT THAT WE WOULD BE WILLING TO INVEST, THERE'S AN OPPORTUNITY FOR UPSCALING, THEY HAVE SOME SPACE.

SO THEY'RE GETTING POTENTIALLY A JOB OPPORTUNITY, SOME UPSCALE OPPORTUNITY AND SOME WRAPAROUND SERVICES, AND THAT'S REALLY THE MODEL WE WANT TO FOCUS ON.

TRYING TO FOCUS ON THE TARGETED POPULATIONS AND PROVIDING THOSE THINGS AS CONSISTENTLY AS POSSIBLE.

TRYING TO MEET RESIDENTS WHERE THEY'RE AT AND MOVING THEM THROUGH THE MILESTONES OVER THE LONG TERM.

EVEN THOUGH WE CONTRACT FOR X AMOUNT OF FOLKS FOR YEARS, WORKFORCE IS A LONG-TERM GAME, IT TAKES FOLKS FOUR YEARS, FIVE YEARS, SIX YEARS TO MOVE UP THE MILESTONES.

AS LONG AS WE'RE COMMITTED TO THE LONG THIEF TERM AND HAVING PROGRESSION BE ONE OF THE METRICS THAT WE SEEK, WE THINK THIS IS A GOOD OPTION.

THAT'S THE INTENT BEHIND UPSCALE.

AGAIN, WE'RE ONLY DOING TWO A YEAR, AND THE INTENT IS NOT TO DRAW IN THIS TYPE OF JOB.

THAT'S NOT WHAT WE'RE PURSUING.

WHAT WE WANT ARE ACCESS TO PEOPLE WORKING 40 HOURS A WEEK BUT NEED SPACE TO UPSCALE, WE NEED ACCESS TO THOSE PEOPLE, NOT NECESSARILY MORE OF THOSE JOBS.

SO THIS WOULD WORK WITH AN EXISTING EMPLOYER, WE'D LOVE TO DO ONE OF THOSE PROJECTS, WE'LL GO TO RETENTION VISITS.

THIS NET NEW TYPE OF PROJECT IS WHAT A LOT OF THE CONVERSATIONS WITH NATIONAL SIGHT SELECTORS AND LOCAL SIGHT SELECTORS HAS BEEN ABOUT.

TO CLOSE HERE WHAT WE'RE GOING TO DO IS TALK ABOUT SOME OF THE INITIAL FINDING THAT'S OUR CONSULTANTS CAME UP WITH BASED ON SOME OF THESE RECOMMENDATIONS AND FOR THAT, I'LL BRING JENNA TO SPEAK ON THAT TOPIC.

>> MR. MAYOR, MEMBERS OF CITY COUNCIL AND RENE, THANK YOU SO MUCH FOR ALLOWING ME THE OPPORTUNITY TO SUPPORT THIS PRESENTATION.

AS YOU CAN TELL, THE CITY STAFF, THE ECONOMIC DEVELOPMENT DEPARTMENT, HAS DONE TREMENDOUS WORK OVER THE LAST ALMOST YEAR OR SO TO RESEARCH AND BRING FORWARD TO YOU THIS NEW TAX ABATEMENT GUIDELINE THAT I BELIEVE IS GOING TO BE VERY HELPFUL FOR THOSE ORGANIZATIONS THAT WE'RE LOOKING TO RECRUIT AND, OF COURSE, RETAIN IN OUR COMMUNITY.

AND OUR ORGANIZATIONS, WE PARTNER VERY CLOSELY ON EVERYTHING THAT WE DO, BUT SPECIFICALLY WITH THIS EFFORT, WE ARE PARTNERED FROM THE BEGINNING, WAY BACK TO SERVING ON THE PANEL TO SELECT OUR CONSULTANTS TO TODAY SUPPORTING THE PRESENTATION AND HOPEFULLY INTO THE FUTURE, HELPING TO ACTUALLY DEVELOP THE PACKAGES FOR THE CORPORATIONS THAT WE'RE WORKING WITH.

BUT THE KEY PORTION OF OUR ENGAGEMENT AND REALLY THE FEEDBACK TODAY WAS THE PERSPECTIVE OF OUR CUSTOMER.

BECAUSE AS RENE AND TEAM AS THEY WERE PROGRESSING THROUGH THIS PROCESS, THEY WANTED TO MAKE SURE THAT THEY WEREN'T PERFORMING THIS WORK IN A VACUUM, THEY WANTED TO KNOW WHAT THE SIGHT SELECTORS, THE FOLKS THAT ARE INFORMING THE DECISIONS, AND THE COMPANIES WE WORK WITH DIRECTLY WHAT THEY THOUGHT ABOUT THESE NEW GUIDELINES.

THE FEEDBACK IS BEHIND ME, IT'S RELATIVELY SIMPLE.

FROM A PROCESS PERSPECTIVE, THERE WERE THREE KEY THINGS THAT CAME UP.

ONE WAS OPTIONALITY, WE WANT ADDITIONAL WAYS WE CAN QUALIFY FOR INCENTIVES.

THE SECOND OBJECTIVITY.

WE WANT THERE TO BE BLACK AND WHITE GUIDELINES ON THE FRONT END THAT THE STAFF CAN HAVE SO WE CAN INFORM OUR MODELING, THE SIGHT SELECTORS CAN INFORM OUR MODELING AND IT'S LESS DISCRETIONARY ON THE BACK END.

THAT CAUSES CONFUSION AND WE KNOW TIME IS OF THE ESSENCE FOR EVERY DEAL THAT WE WORK.

LAST BUT NOT LEAST, IT'S UP HERE IN BIG, BOLD LETTERS BUT THE BIGGEST ADVICE THEY GAVE US WAS NOT TRY TO OVERLAY ADDITIONAL ADMINISTRATIVE BURDEN.

IN ADDITION, AND JUST IN CLOSING, I'LL SAY THAT AS WE WORKED WITH BOTH THE SIGHT SELECTORS, THE CONSULTANT SURVEYED SIGHT SELECTORS ACROSS THE UNITED STATES AND THEN WE ALSO SURVEYED SIGHT SELECTORS THAT WE WORKED WITH OVER THIS PAST YEAR, SOME THAT WORKED WITH COMPANIES WHO SELECTED SAN ANTONIO, AND SOME WHO REPRESENTED COMPANIES THAT DIDN'T SELECT SAN ANTONIO, BECAUSE WE WANTED THAT CANDID FEEDBACK.

IT WAS VERY HELPFUL.

BUT THEIR FEEDBACK COMBINED WITH FEEDBACK FROM OUR PRIVATE INDUSTRY HERE LOCALELY AND FOLKS THAT WE WORK WITH, THE BIGGEST STRATEGIC POINT OF FEEDBACK WAS THAT AS WE FOCUS ON ECONOMIC MOBILITY AND WORKFORCE DEVELOPMENT AS A MEANS OF PROGRESSING THERE, THAT WE ARE STARTING IN THE RIGHT PLACE.

SO IF THERE'S ONE THING I LEAVE YOU WITH TODAY, IT'S THAT FEEDBACK, THAT YOU'RE FOCUSED IN THE RIGHT AREAS, THE EWDC DID A GREAT JOB ENGAGING AND CHALLENGING THIS A COUPLE OF TIMES WHEN WE PRESENTED THAT.

[00:40:02]

I'M HERE TO HELP SUPPORT ANY SORT OF QUESTIONS, BUT THE EDF AND OUR COLLECTIVE TEAM ARE SUPPORTIVE OF THE PROCESS AND THE RECOMMENDATIONS TODAY.

THANK YOU.

>> DOMINGUEZ: ALL RIGHT, WITH THAT MAYOR, WE'RE HAPPY -- OH, WE HAVE BEEN ENGAGED IN A LOT OF PUBLIC FEEDBACK.

SO STARTING IN MARCH, WE'VE HAD AROUND 10 DIFFERENT MEETINGS, SPECIFICALLY WITH THE DIFFERENT ORGANIZATIONS IN TERMS OF TEAM SAN ANTONIO, THE ECONOMIC DEVELOPMENT ORGANIZATIONS, THE CHAMBERS, BROOKS, PORT, ALL THE CHAMBERS.

AND SO WE'VE MET WITH THEM AND VETTED THIS, BUT WE'VE ALSO HAD PUBLIC HEARINGS, THREE SO FAR.

WE'RE HAVING SOME ADDITIONAL ONES AFTER THIS PRESENTATION, AND REALLY THOSE PRESENTATIONS WE GOT SOME GREAT ADVICE FROM EWDC WHEN WE PRESENTED AND THAT IS THERE'S A LOT OF MYSTERY AROUND TAX ABATEMENTS, SO IN ADDITION TO GOING OUT THERE AND SOLICITING THEIR FEEDBACK, TAKE THIS AS AN OPPORTUNITY TO PRESENT WHAT A TAX ABATEMENT IS, THIS IS A NEW INVESTMENT, WE'RE ONLY ABATING CITY TAXES, ALL THE OTHER JURISDICTIONS AREN'T TOUCHED SO THESE PUBLIC HEARINGS HAVE REALLY GIVEN US A CHANCE TO KIND OF DEMYSTIFY WHAT A TAX ABATEMENT IS, ALSO VET SOME OF THE RECOMMENDATIONS THAT WE'VE MADE.

SO WITH THAT, BOTH ADRIAN AND I AND TEAM ARE HAPPY TO ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE, MAYOR.

>> MAYOR NIRENBERG: GREAT, THANK YOU VERY MUCH FOR THE PRESENTATION, RENE AND ADRIAN AND JENNA.

I'LL ASK OUR CITY CLERK, THERE'S A STATEMENT THAT WAS BROUGHT FORTH BY COUNCILWOMAN VIAGRAN IN HER ABSENCE, IF YOU WANT TO JUST PUT THAT IN THE RECORD, MAYBE READ SOME OF IT.

>> CLERK: SURE.

IT STATES AS FOLLOWS: ON BEHALF OF COUNCILWOMAN VIAGRAN, I'D LIKE TO READ A FEW COMMENTS THAT SHE WANTED TO SHARE WITH YOU.

I'D LIKE TO EXPRESS MY SUPPORT FOR THE APPROACH AND RECOMMENDATIONS PUT FORTH BY THE ECONOMIC DEVELOPMENT DEPARTMENT TODAY AND LOOK FORWARD TO HEARING FROM MY COLLEAGUES' FEEDBACK.

IN MARCH, THE EWDC REQUESTED THAT OUR ECONOMIC DEVELOPMENT DEPARTMENT DEVELOP A POLICY FRAMEWORK TO EXPAND THE VARIOUS EXISTING ECONOMIC DEVELOPMENT STRATEGIES TO ENSURE THAT ALL AREAS OF OUR CITY HAVE EQUITABLE OPPORTUNITIES FOR ADVANCEMENT.

AND I THINK MOST OF YOU HAVE THIS AT YOUR SEAT, SO I'M GOING TO GO ON TO THE BOTTOM PORTION.

AT A TIME WHERE IT APPEARS THAT A ZIP CODE CAN DETERMINE THE DESTINY OF SOME OF OUR RESIDENTS, THE ECONOMIC AND WORKFORCE DEVELOPMENT COMMITTEE HAS MADE IT A POLICY TO PROMOTE EFFORTS RESULTING IN A MORE EQUITABLE SAN ANTONIO.

EDD HAS TAKEN A GOOD INITIAL STEP BY LINKING RECOMMENDATIONS TO WHAT WORKS FOR THE BUSINESS COMMUNITY TO SERVE THE DUAL PURPOSES OF PURSUING A COMPETITIVE ECONOMY AND PROACTIVELY CONNECTING THE MOST DISTRESSED RESIDENTS IN OUR COMMUNITY TO JOB OPPORTUNITIES, TRAINING SERVICES AND TO EFFECTIVELY MEET THEM WHERE THEY ARE.

FROM AN ECONOMIC DEVELOPMENT PERSPECTIVE, THAT IS WHAT THIS POLICY RECOMMENDATION REPRESENTS.

THIS IS THE FIRST STEP IN THE 20-YEAR FOCUS OF THE SA TOMORROW COMPREHENSIVE PLAN WITH THE EXPRESS PURPOSE OF WORKING WITH INDUSTRY TO REACH OUR COMMON GOALS.

ON BEHALF OF MY COMMITTEE MEMBERS, I WELCOME YOUR FEEDBACK AND I THANK YOU FOR CONSIDERATION OF MY PERSPECTIVE IN MY ABSENCE.

AND THAT'S FROM COUNCILWOMAN REBECCA VIAGRAN.

>> MAYOR NIRENBERG: THANK YOU, LETICIA.

SO LET ME JUST START WITH ACKNOWLEDGING THE OBVIOUS, WHICH IS THAT TAX ABATEMENT POLICIES ARE PROBABLY SOME OF THE MORE SENSITIVE AREAS OF POLICY CONVERSATIONS, SO WHEN WE START WITH THIS, WE HAVE TO ACKNOWLEDGE THAT THE GOAL OF ANY TAX ABATEMENT PROGRAM IS TO ENHANCE THE PUBLIC GOOD.

WHAT'S THE RETURN ON INVESTMENT? AND I HAVE BEEN PRIVY, AND I KNOW A NUMBER OF OUR COLLEAGUES HAVE, OVER THE LAST SEVERAL YEARS, THROUGH CONVERSATION ABOUT WHAT ARE WE TRYING TO INCENT? IS IT JUST THE TOTAL NUMBER OF JOBS? WHAT KIND OF JOBS ARE WE AFTER? WHAT IS IT AFFECTING SOME OF OUR TARGETED POPULATIONS? IS IT BRINGING IN OUR TARGET INDUSTRY JOBS? IS IT INCREASING THE LEVEL OF PROSPERITY IN OUR COMMUNITY? I HAVE TO SAY, AFTER LOOKING AT THE PRESENTATION, YOU'VE DONE A REALLY GOOD JOB OF LISTENING TO ALL THOSE CONVERSATIONS AND INCORPORATING ELEMENTS OF EACH ONE.

I HAVE A FEW SPECIFIC QUESTIONS RELATED TO ONE OF THE BULLETS ON PAGE 13.

THE LAST PART, I'M NOT CLEAR ON UNDERSTANDING THE MEET TWO AND MEET THREE PRIORITIES, 50% AND 100% GUIDELINES.

SO IF TWO OF THOSE ITEMS ON THE LIST ARE MET, THEY WOULD ACHIEVE A 50% TAX ABATEMENT? HOW DOES THAT -- HOW IS THAT IMPACTED BY THE NUMBER OF JOBS IN WHAT TARGET AREA AND SO FORTH

[00:45:04]

?

>> PEREZ SO CAN YOU REPEAT THE FIRST PART OF YOUR QUESTION?

>> MAYOR NIRENBERG: I GUESS JUST WALK ME THROUGH PERCENTAGE OF ABATEMENT AND HOW THAT WORKS.

>> PEREZ: SURE.

SO WHAT WE WANT TO DO IS CREATE A VERY OBJECTIVE WAY OF INFORMING BUSINESSES WHEN THEY COME HERE.

PRIOR TO THIS FRAMEWORK, IT WAS BASICALLY UP TO 50, UP TO 100, AND WE KIND OF NEGOTIATED WITH THE COMPANY.

NOW WHAT WE'RE DOING IS DEFINING THOSE THINGS THAT WE'RE ACTUALLY LOOKING FOR.

>> DOMINGUEZ: SO IF A COMPANY FIRST OF ALL, IN TERMS OF TERM, LOCATES IN THE INCLUSIVE GROWTH AREA, IT'S 10 YEARS.

IF IT'S NOT IN THE INCLUSIVE GROWTH AREA, IT'S SIX YEARS.

IN TERMS OF PERCENTAGE OF THE ABATEMENT, IF THEY CHOOSE -- OR QUALIFY FOR TWO OF THE PRIORITIES THEY GET 50%.

SO IF A COMPANY COMES IN THAT'S AN I.T. COMPANY AND THEY CREATE 30% OF THEIR JOBS THAT ARE HIGH WAGES AND THEY SAY THAT'S WHAT WE'RE BRINGING TO THE TABLE, WELL, YOU QUALIFY FOR A 10-YEAR, 50% ABATEMENT.

HOWEVER, IF YOU CONSIDER ADDING PAID INTERNSHIPS AND SPENDING 5% OF THE VALUE OF YOUR TAX ABATEMENT ON INTERNSHIPS, PAID INTRNSHIPS, THEN YOU, IN ESSENCE, CHECK THREE OF THE PRIORITIES AND WOULD RECEIVE 100%.

THIS IS VERY TRADITIONAL, THIS IS WHAT WE'VE BEEN NEGOTIATING A LOT MORE RECENTLY.

I'VE BEEN BRINGING FORWARD THIS IDEA OF WANTING TO EMBED PAID INTERNSHIPS AND USING THE ACTUAL INVESTMENT AND THE ABATEMENT VALUE TO COVER THOSE.

WHAT'S NET NEW IS -- AND WHAT WE SEE A LOT OF -- ARE PROJECTS THAT AREN'T TARGETED INDUSTRY, BUSINESS SERVICES PROJECTS, THEY'D COME TO THE TABLE, THEY'RE NOT A TARGETED INDUSTRY AND PERHAPS THEY DON'T HAVE 30% OF THEIR EMPLOYEES THAT ARE REACHING THAT HIGH WAGE, BUT THEY'RE MAYBE AT 20%, AND SO IF THEY INCREASE THAT NUMBER TO ANOTHER 10% OF THOSE TOTAL JOBS, THEY COULD CHECK THAT BOX.

IN ADDITION TO THAT, IF THEY WERE WILLING TO ALSO LAYER IN PAID INTERNSHIPS, THAT WOULD GET THAT COMPANY A 50% ABATEMENT; HOWEVER, COMPANIES ARE ALWAYS TRYING TO MAXIMIZE THE BENEFIT.

AND SO WHAT WE WANTED TO DO WAS MAKE IT VERY CLEAR THAT IF THEY JUST DID TWO -- OR EXCUSE ME, ONE OTHER THING FROM THESE TWO OTHER AREAS, THEY WOULD QUALIFY FOR 100%.

SO HIGHER FROM THE INCLUSIVE GROWTH AREA, WHICH IS DIFFICULT AND CHALLENGING AND WE ACKNOWLEDGE THAT.

SO HOPEFULLY THERE ARE COMPANIES THAT ACKNOWLEDGE IT.

THAT'S A DOABLE GOAL.

THAT'S FROM THE YELLOW AREA.

SO IF THE COMPANY'S WILLING TO DO THAT, WE WOULD CHECK THE BOX AND THEY WOULD, IN ESSENCE, GET 100%.

HOWEVER, IF THAT'S SOMETHING THAT WAS TOO ONEROUS, CHALLENGING FOR THE COMPANY, THE FIFTH OPTION IS PARTNERSHIP OPTIONS, AND THAT'S WHERE WE REALLY TIE TOGETHER SA TOMORROW.

AND THESE PRIORITIES.

NOW, THESE ARE THE PRIORITIES WE'VE BEEN HEARING FROM YOU-ALL AS OUR POLICYMAKERS THAT ARE IMPORTANT.

AND AS I'VE PRESENTED PROGRAMS, I OFTEN TALK TO YOU ABOUT WOULDN'T IT BE GREAT IF THEY EMBEDDED THIS INTO THE PROJECT? WE'LL NEGOTIATE THAT IN.

NOW WE'RE MAKING IT VERY CLEAR, IF THEY CHOOSE TWO OF THESE FOUR AND SPEND 15% OF THE TOTAL VALUE OF THEIR ABATEMENT ON TWO OF THESE FOUR, THEY COULD CHECK THAT THIRD BOX.

AND SO THAT'S, IN ESSENCE, THE FRAMEWORK, MAYOR, IS CHECKING TWO OF THE PRIORITIES FOR 50, OR CHECKING THREE TO RECEIVE 100.

AND HAVING THAT ALL PREPACKAGED ON THE FRONT END.

>> MAYOR NIRENBERG: OKAY.

BUT WHEN IT COMES TO THE PARTNERSHIP OPTIONS, YOU'RE LOOKING FOR AT LEAST TWO OF THOSE PROGRAMS?

>> DOMINGUEZ: THAT'S RIGHT.

THAT'S RIGHT.

>> MAYOR NIRENBERG: OKAY.

>> DOMINGUEZ: AND SO WHERE WE SEE PERHAPS COMMUTER BENEFITS PLAYING A PRETTY SIGNIFICANT ROLE, OUR PROJECTS COMING DOWNTOWN OR TO OTHER AREAS THAT ARE VERY CONGESTED.

IN ADDITION TO THAT, THESE ARE FROM A CORPORATE RESPONSIBILITY STANDPOINT PROGRAMS THAT COMPANIES ARE COMING TO THE TABLE WITH ALREADY AND SAYING, YOU KNOW, THESE ARE THINGS THAT WE'RE WILLING TO DO, THESE ARE THINGS THAT WE'RE DOING BECAUSE WE'RE GOOD CORPORATE CITIZENS, WE'RE A VERY ADVANCED COMPANY INTERESTED IN BEING A GOOD CORPORATE CITIZEN, SO WE'VE SEEN A SMATTERING OF THESE INITIATIVES FROM COMPANIES, AND WE WANT TO GIVE THEM CREDIT FOR THAT AND KIND OF PUSH THE BOUNDARIES A LITTLE BIT.

SO LIKE ADRIAN SAID, SMALL BIZ UTILIZATION, WE HAVE THE -- BUSINESS UTILIZATION, WE HAVE THE INFRASTRUCTURE IN PLACE TO BE ABLE TO DO VETERAN-OWNED BUSINESS BUT ALSO TRACK THEIR UTILIZATION, SO THEY'RE WILLING TO SPEND 20% OF THEIR DEVELOPMENT OR THEIR OPPORTUNITY TO SPEND OVER THE NEXT FIVE YEARS, THAT WOULD CHECK THAT BOX AS ONE OF THE TWO, SUSTAINABILITY, HEALTH AND WELLNESS AND COMMUTER BENEFITS, SO FORTH.

>> MAYOR NIRENBERG: WAS THERE ANY CONSIDERATION GIVEN TO THE RELATIVE WEIGHT OF EACH OF THOSE FIVE ITEMS? FOR INSTANCE, TARGETED INDUSTRY AS A POTENTIAL PREQUAILIFIER, LIKE A GATING METRIC, LIKE IF, FOR INSTANCE, SHOULD WE BE

[00:50:02]

ABATING ANY NEW JOBS THAT ARE NOT WITHIN TARGETED INDUSTRIES? WAS THAT QUESTION CONSIDERED?

>> DOMINGUEZ: ABSOLUTELY IT WAS CONSIDERED.

AND BROUGHT UP, AND SO THE FRAMEWORK, VERY SPECIFICALLY, CREATED AN AREA IN WHICH TARGETED INDUSTRY WOULD BE COUNTED AS ONE OF THE OPTIONS.

AND I'LL BE VERY FRANK, IT'S BECAUSE THAT'S WHAT WE WANT.

SO THAT AUTOMATICALLY CHECKS THE BOX, AND IN ESSENCE, MAKES IT A LITTLE EASIER FOR THOSE PROJECTS THAT WE'RE LOOKING FOR.

THE REALITY IS THE AVERAGE PROJECT IS AROUND $40 MILLION, 500 JOBS, NOT NECESSARILY TARGETED INDUSTRY, IT'S BUSINESS SERVICES, MANUFACTURING, THOSE ARE THOSE PROJECTS.

SO IN THOSE CASES, WE WANTED TO REALLY MAXIMIZE THE COMPANY'S ENGAGEMENT WITH THE CITY IN TERMS OF POLICY PRIORITIES.

>> MAYOR NIRENBERG: I WOULD ASK A SIMILAR QUESTION WITH THE INCLUSIVE HIRING IN THE IGA, AND THE IGA INCLUDES ALL OF THE ABOVE, REGIONAL CENTERS, OPPORTUNITY ZONES AND THEN IMPOVERISHED COMMUNITIES.

>> DOMINGUEZ: RIGHT.

THE IGA IS ALL THREE.

NOW, THE REGIONAL CENTERS, AS TO THE SUBAREA PLANS ARE APPROVED BY COUNCIL, I BELIEVE THERE ARE SOME THIS YEAR, OVER THE NEXT THREE TO FIVE YEARS, THEY WOULD BE LAYERED IN.

SO THE OPPORTUNITY ZONE IS ALREADY ESTABLISHED, AND THEN THE IGA IS THOSE EXHIBITING 20% OR HIGHER, SO IT'S ALL THREE AREAS.

>> MAYOR NIRENBERG: OKAY.

I MEAN, AND WE HEAR THE RHETORIC THAT WE WANT TO SINK IN WHICH IS THAT AS OUR CITY GROWS, AS IT BECOMES MORE PROSPEROUS, WE WANT THE PEOPLE WHO ARE HERE TO BENEFIT FROM THAT PROSPERITY, REGARDLESS OF WHERE THEY ARE AND WHAT KIND OF JOB THEY DO.

IF WE'RE ABLE TO DO OUR JOBS AND LIFT THE STANDARD OF LIVING THROUGH THE USE OF THESE INCENTIVES, THEN WE'RE DOING THAT, WE'RE MEETING THAT EXPECTATION.

>> DOMINGUEZ: ABSOLUTELY.

THIS IS A REAL EVOLUTION OF OUR ECONOMIC DEVELOPMENT STRATEGY IN WHOLE, TO PROVIDE A LITTLE BIT OF A CONTEXT, YOU KNOW, EIGHT OR NINE YEARS AGO BEFORE SHERYL CAME HERE, OUR GAME WAS A RECRUITMENT GAME, MARKETING RECRUITMENT, GOING AFTER BIG GAME HUNTING.

>> MAYOR NIRENBERG: RIGHT.

>> DOMINGUEZ: THEN WE TRANSITIONED INTO THOSE TRADED CLUSTERS, THOSE TARGETED INDUSTRIES BUT WE ALSO DID SOMETHING VERY SIGNIFICANT WE STARTED LOOKING AT BRE AS A SIGNIFICANT WAY TO GROW JOBS, BUSINESS RETENTION EXPANSION, LOCAL COMPANIES.

WE ADDED THAT INTO OUR SUITE OF SERVICES.

WE ALSO STARTED FOCUSING ON SKILL DEVELOPMENT AND INNOVATION.

SO WE REALLY STARTED LOOKING INWARD, AND I THINK WHAT YOU SEE REPRESENTED HERE IS THAT THIRD EVOLUTION IN TERMS OF NOW TYING AND BOLTING ON PEOPLE AND TRYING TO UPSKILL THEM.

>> MAYOR NIRENBERG: YEAH.

SHERYL?

>> SCULLEY: JUST A LITTLE MORE CONTEXT ON THIS: SO THE WAKEUP CALL WAS WHEN AT&T LEFT SAN ANTONIO WITH REGARD TO &-úN MAYOR HARDBERGER CONVENED A GROUP OF CEOS TO TALK ABOUT WHAT DO WE NEED TO DO DIFFERENTLY.

BECAUSE YEARS AGO THE -- IN AUDIO] -- TARGETING AREAS OF THE COMMUNITY THAT NEEDED HELP IN TERMS OF WORKFORCE DEVELOPMENT, BUT ALSO TARGETING THE INDUSTRY THAT WOULD RAISE THE BAR FOR THE COMMUNITY.

AND IT WAS A LONG CONVERSATION, AND IT TOOK SEVERAL YEARS TO REALLY PUT IN PLACE THE STRATEGIES THAT JENNA IS LEADING THROUGH THE EDF TODAY.

AND HAVING BEEN A PART OF THAT PROCESS, I KNOW I'VE REPRESENTED THE CITY ON HER EXECUTIVE COMMITTEE FOR MORE THAN THE PAST DECADE, IT IS NOW FOCUSING 80% OF THEIR TIME ON THE TARGETED INDUSTRY AS OPPOSED TO THE OTHER WAY AROUND.

AND SO IT TOOK QUITE SOME TIME, AND WE WERE ABLE TO STRENGTHEN THAT THROUGH OUR EDF CONTRACT, SO BACK 15 YEARS AGO THERE WAS NO PUBLIC/PRIVATE PARTNERSHIP.

EDF WAS ENTIRELY IN A SMALL WAY, IT WAS A SMALL BUDGET, BUT PRIVATELY FUNDED, AND THROUGH THAT AT&T EXIT AND THE COMMITTEE THAT WAS PUT TOGETHER THAT WAS COCHAIRED BY WAYNE PEACOCK AND DAVID ZACHARY, GRAHAM WEST TIN SERVED ON THAT, ELAINE, BERTO WAS ON IT, AS WELL, KEN HALLIDAY, SO IT WAS A SMALL GROUP BUT THEY -- THEY SAID WE'LL DOWNSIZE AS A CITY ECONOMIC DEVELOPMENT OR INCREASE BASED ON THE RESULTS, THAT IT WASN'T ABOUT KEEPING WHAT WE HAD, BUT RATHER WHAT'S IN THE BEST INTEREST FOR THE COMMUNITY.

SO WE TALKED ABOUT THAT FROM THE STANDPOINT OF HOW DO WE CREATE A

[00:55:04]

BETTER WORKFORCE BECAUSE THAT'S THE FIRST QUESTION PEOPLE ALWAYS ASK ABOUT, DO YOU HAVE THE JOBS THAT CAN HELP ME EXPAND IN SAN ANTONIO OR BE RECRUITED TO THE COMMUNITY? AND THEN THE OTHER THINGS, AND SOMETIMES PEOPLE THINK THAT IT'S ABOUT HOW MANY INCENTIVES THEY'RE PROVIDED, AND IT'S NOT THAT.

IT'S THE TOTAL PACKAGE, BUT WORKFORCE IS THE MOST IMPORTANT.

AND SO WE TRIED TO FOCUS OUR EFFORTS IN THAT REGARD, WHICH IS WHY WE MOVED SA WORKS UNDER THE EDF AND WE WORK IN PARTNERSHIP ON THAT TO ENSURE THAT WE'RE ALL AT THE TABLE.

SO THE CREATION OF PUBLIC FUNDS INTO THE EDF FOR A PUBLIC/PRIVATE PARTNERSHIP HAPPENED NOW, WHAT, SEVEN YEARS AGO? SEVEN -- NINE? WE'RE IN OUR SECOND CONTRACT, BUT PERFORMANCE METRICS THAT ARE CONTINUED TO STRENGTHEN AND SUPPORT THAT EFFORT.

SO THEY'RE GETTING STRONGER EACH TIME WE'VE DONE A CONTRACT WITH THE ESMGHT -- EDF.

AND ABOUT HALF OF THEIR FUNDING IS PUBLIC, HALF IS PRIVATE, AND THEY'RE WORKING TO BUILD THE PRIVATE EVEN FURTHER, BUT THE BRE PART CAME OUT OF THAT AT&T EXIT EFFORT AS WELL.

THAT IS NOT JUST ATTRACTING COMPANIES HERE, BUT SOME OF OUR LOCAL COMMUNITIES -- BUSINESSES WERE SAYING, HEY, WHAT ABOUT ME, I'VE BEEN HERE FOR 50 YEARS OR 40 YEARS AND I'M INVESTING.

SO THE EFFORT REALLY IS MUCH BIGGER.

THIS IS A HUGE PIECE OF IT, BUT IT IS ABOUT TARGETING, IT'S ABOUT GROWING BUSINESS IN THE COMMUNITY, AND IT'S ABOUT HELPING OUR WORKFORCE BE READY FOR THESE 21ST CENTURY JOBS, BECAUSE THEY'RE ONLY GETTING MORE AND MORE COMPLICATED IN THE SENSE THAT THEY NEED BETTER EDUCATION TO BE ABLE TO UNDERTAKE THE JOBS THAT WE ARE GROWING IN THE COMMUNITY AND ATTRACTING TO THE COMMUNITY.

SO THIS EFFORT, USING OUR EQUITY ASSESSMENT TO GO THROUGH THE PROCESS AND HELP US TARGET, IS ANOTHER REFINEMENT OF THIS EFFORT, AND I -- RENE'S DONE AN EXCELLENT JOB, ADRIAN, GREAT JOB.

AND WE APPRECIATE THE PARTNERSHIP WITH THE EDF SO THAT WE CAN WORK ON THIS TOGETHER AND MAXIMIZE WHAT LIMITED RESOURCES WE HAVE AVAILABLE TO MAKE THE COMMUNITY ECONOMICALLY STRONGER FOR EVERYBODY, NOT JUST FOR A CERTAIN SEGMENT.

>> MAYOR NIRENBERG: I RECALL, RENE, YOU HAD DONE -- OR SOMEONE HAD DONE AN ECONOMIC IMPACT ASSESSMENT OF TAX ABATEMENT DOLLARS.

WHAT IS THE RETURN ON INVESTMENT FOR A DOLLAR INTO AN INCENTIVE PROGRAM LIKE THIS FOR US?

>> DOMINGUEZ: WE DID.

UNDER THE ECONOMIC AND WORKFORCE DEVELOPMENT COMMITTEE, WE DID ECONOMIC ASSESSMENT, A REAL COST BENEFIT ANALYSIS OF OUR CURRENT PORTFOLIO, AND LET ME JUST TIE ONE MORE ISSUE TO THAT, BECAUSE WHEN I PRESENTED TO EWDC, THEY WERE ASKING ABOUT THE EFFECTIVENESS OF THIS -- YOU KNOW, OF THESE TYPES OF PROGRAMS. AND SO THE BEST WAY TO MONITOR AND EVALUATE THE EFFECTIVENESS OF OUR PROGRAM, GIVEN THAT WE'RE REALLY TRYING TO SOLVE FOR OUR ISSUES HERE IN SAN ANTONIO WHICH MAKES IT HARD TO COMPARE TO OTHER PIER -- PEER CITIES IS REALLY AS YOU MENTIONED A RETURN ON INVESTMENT.

SO THAT STUDY SHOWED EVERY 1 DOLLAR OF INCENTIVE THAT WE OFFER, WE GET IN RETURN $5.22, AND THAT'S AN EXTREMELY CONSERVATIVE NUMBER.

THAT'S IF WE ONLY LOOK AT THE ACTIVE AGREEMENTS WE HAVE IN PLACE.

>> MAYOR NIRENBERG: THE DIRECT INVESTMENT.

>> DOMINGUEZ: A SNAPSHOT IN TIME.

IN ADDITION TO THAT, $5.22 OF RETURN, MAYOR, THAT DOES NOT INCLUDE THE $30 OF PRIVATE SECTOR INVESTMENT.

THAT'S NOT INCLUDED IN THE 5.22 THAT IS LEVERAGED THROUGH THAT INCENTIVE, SO THAT EQUATED TO NEARLY $3 BILLION OF INVESTMENT THAT THOSE 72 PROJECTS REPRESENT.

SO FROM AN EFFECTIVENESS STANDPOINT, I THINK OUR ROI --

>> MAYOR NIRENBERG: SO THE 5.22 IS THE DIRECT INVESTMENT ROI.

YOU'RE NOT INCLUDING WAGE GROWTH, PERSONAL INCOME, ALL THAT --

>> DOMINGUEZ: THAT'S

>> MAYOR NIRENBERG: WELL, I THINK IT'S WORTH UNDERSCORING.

IT'S NOT THE INCENTIVES THAT ARE BRINGING BUSINESSES HERE AND GROWING JOBS HERE.

IT'S, YOU KNOW, A STABLE WATER SUPPLY, A RELIABLE ENERGY SYSTEM.

IT'S THE FACT THAT WE HAVE GREAT QUALITY OF LIFE.

IT'S GETTING BETTER.

WE'RE WORKING ON HOUSING ISSUES THAT OTHER CITIES ARE FALLING BEHIND ON.

ALL THE THINGS THAT MAKE A LIVABLE CITY ARE WHAT ARE ULTIMATELY BRINGING PEOPLE TO OUR DOORSTEPS.

WHEN WE'RE ABLE TO USE AN INCENTIVE PROGRAM TO HIGHLIGHT GAPS IN EQUITY, TARGETED

[01:00:01]

INDUSTRIES, WE SHARPEN OUR ABILITY TO BRING THE RIGHT JOBS TO SAN ANTONIO TO HELP LIFT ALL COMMUNITIES.

I'M VERY SUPPORTIVE OF THE APPROACH.

MY ONE CAVEAT WOULD BE THERE'S A NUMBER OF DIFFERENT CHANGES HERE HAPPENING.

I WOULD WANT TO GET AN UPDATE AT A REGULAR INTERVAL.

BECAUSE THINGS LIKE HIGH WAGES -- HOPEFULLY THAT WILL CHANGE WHERE WE SCORE THAT NUMBER.

LIVING WAGE.

OBVIOUSLY WE HAVE EMPHASIZED THAT FOR A LONG TIME WITH THE INCENTIVE PROGRAM.

THAT'S GOING TO HOPEFULLY CHANGE AS WELL.

IN TERMS OF WHERE WE ARE AS A COMMUNITY.

SO I WOULD WANT -- WHAT IS BEING ASKED OF US IN TERMS OF ADOPTING A NEW POLICY, NEW POLICY GUIDELINE? WHAT IS THE TERM OF THE NEW POLICY? WHAT'S THE PLAN TO COME BACK AND REVIEW?

>> WE INTEND TO BRING THIS FORTH ON DECEMBER 15TH IS THE LAST -- 13TH IS THE LAST COUNCIL MEETING.

MY STATE STATUTE WE HAVE TO REVIEW THE GUIDELINES EVERY TWO YEARS.

BUT WE HAVE THE ABILITY TO TWEAK THEM, IF WE WOULD LIKE.

BUT WHAT WE'VE BEEN DOING IS PUTTING FRAMEWORKS TOGETHER.

THIS IS THE FIRST SORT OF MAJOR OVERHAUL OF THIS FRAMEWORK.

AND WE WOULD LIKE TO BE IN PLACE FOR A COUPLE OF YEARS AND THEN REALLY MONITOR THE SUCCESS WE'VE HAD.

JUST ON A VERY QUICK NOTE, THE ACTUAL -- JUST SO YOU UNDERSTAND HOW THE LIVING WAGE AND INDUSTRY WAGE, THOSE INDEX AND CHANGE ANNUALLY.

SO THAT CHANGE AUTOMATICALLY HAPPENS WITHIN THE GUIDELINES.

AND THEY'VE BEEN INCREASING AT A PRETTY SIGNIFICANT CLIP.

THE ALL-INDUSTRY WAGE, AROUND 3.5% INCREASED.

THAT'S THE AVERAGE OVER THE LAST FIVE YEARS.

WE ANTICIPATE THAT BEING AROUND $17 AFTER JANUARY 1.

THAT'S REALLY BEEN DRIVING WAGES.

SO THOSE INDEX AND CHANGE ANNUALLY.

AS FAR AS UPDATE, EWDC ASKED FOR REGULAR UPDATES.

MAYBE, WE HAVE BEEN PRESENTING SORT OF UPDATES ON THIS REGULARLY AND WE INTEND TO CONTINUE TO DO THAT.

>> MAYOR NIRENBERG: OKAY.

GREAT.

THE LAST THING I JUST REMEMBERED.

A COUPLE OF YEARS AGO THERE WAS A REPORT, GOVERNING, I THINK IT WAS, GOVERNING INSTITUTE THAT IS SCATHING ON SOME MUNICIPALITIES AND HOW THEY HANDLE THEIR TAX ABATEMENT PROGRAMS AND NON-TRANSPARENCY.

YOU TOUCHED ON THIS.

I WOULD HOPE THAT AS WE DEVELOP -- AND WE MAY ALREADY BE THERE, I DON'T KNOW, THAT WE SHOOT FOR THE GOLD STANDARD.

WE WANT TO BE AS OPEN AND AS TRANSPARENT WITH THE WAY THIS IS WORKING IN OUR RETURN AS POSSIBLE.

>> WE WENT THROUGH AN OPEN DATA INITIATIVE IN MARCH, I BELIEVE.

ALEX LED THIS INITIATIVE.

I'M HAPPY TO SAY FOR AT LEAST FIVE OR SIX MONTHS ALL OF OUR TAX ABATEMENT AND GRANT AGREEMENTS ARE ONLINE.

THE STATUS OF THOSE AGREEMENTS.

THE MILESTONE REQUIREMENTS OF EACH OF THOSE COMPANIES IS POSTED.

AND WE UPDATE THAT ANNUALLY.

YOU'RE REFERRING TO GOOD JOBS FIRST.

WE TOOK THAT STUDY.

WE IDENTIFIED WHAT WOULD GIVE US A PERFECT 100 SCORE, AND WE BASICALLY REPLICATED THAT.

AND THAT'S WHAT'S ON OUR WEBSITE, MAYOR.

>> MAYOR NIRENBERG: EXCELLENT JOB.

THANK YOU VERY MUCH, RENE.

COUNCILMAN PERRY.

>> PERRY: THANK YOU, SIR.

THANK YOU, RENE AND THE TEAM FOR WORKING THIS.

I JUST WANTED TO GO BACK ONE MORE TIME TO SLIDE 21.

SLIDE 21.

YOU KNOW, THESE WERE A SUMMARY OF FINDINGS.

AND I THINK I ASKED THIS QUESTION LAST TIME ALSO.

JUST THESE WERE THE SITE SELECTORS THAT DO THIS FOR A JOB GOING OUT, LOOKING FOR PLACES FOR INDUSTRY, RIGHT?

>> YES.

>> PERRY: AND THEY CAME UP WITH SOME GOOD POINTS HERE.

ARE WE CONFIDENT THAT, YOU KNOW, WE HAVE, WITH THIS PROGRAM, WE'RE NOT ADDING TO THE COST OF THEIR BUSINESS AND WE'RE MINIMIZING THE ADMINISTRATIVE BURDEN ON NEW REQUIREMENTS?

>> GREAT QUESTION.

AND SO THIS WHOLE LAST YEAR, AS WE'VE BEEN DEVELOPING OUT THESE CONCEPTS AND IDEAS, WE HAVE BEEN INCLUDING OR MONITORING STAFF TO REALLY DETERMINE WHAT'S FEASIBLE.

WE CAN'T ASK A COMPANY TO DO SOMETHING IN WHICH WE CAN'T MONITOR.

THAT IS EXTREMELY CHALLENGING FOR US.

AND SO ALL OF THE CRITERIA THAT YOU SAW, THOSE FIVE ITEMS, WE'VE DEVELOPED OUT WAYS TO MONITOR THEIR COMPLIANCE OF THOSE IN A WAY THAT'S AT LEAST ONEROUS AS POSSIBLE.

RIGHT NOW COMPANIES REPORT TO US TWICE A YEAR AND WE TAKE ACTION BASED ON WHAT IS AFFORDED TO US WITHIN THE CONTRACT.

AND SO WE'RE GOING TO BUILD A VERY SIMILAR TYPE OF STRUCTURE.

IN OTHER WORDS, IF A COMPANY IS ONLY MEETING 90% OF THE GOAL, THE REACTION TO THAT IS THEY ONLY GET 90% OF THE TAX

[01:05:01]

ABATEMENT.

AND THAT IS A VERY LEAST BURDENSOME WAY OF APPROACHING MONITORING.

SO THAT'S THE WAY WE'VE APPROACHED ALL THESE ITEMS IS TO FIND THAT RIGHT BALANCE, SO ENSURE THEY'RE DOING WHAT THEY SAY IN THE CONTRACT, BUT TO DO IT IN A WAY THAT IS EASY FOR THE COMPANY.

DOES THAT ANSWER YOUR QUESTION?

>> PERRY: YEAH.

AND I UNDERSTAND AGAIN ABOUT THE SITE SELECTORS.

BUT DID WE KIND OF GO TEST THE WATER WITH COMPANIES THAT MAY NOT HAVE SELECTED SAN ANTONIO AND GOTTEN THEIR REACTION TO THIS TO GAUGE THEM.

WOULD THIS HAVE CHANGED THEIR MIND?

>> SO JENNA'S GOING THROUGH CUSTOMER PERSPECTIVE'S STUDY.

DO YOU WANT TO GIVE A HIGHLIGHT OR UPDATE ON THAT STUDY AND MAYBE CONNECT THE COUNCILMAN'S QUESTION TO THAT EFFORT?

>> SURE.

SHO THE QUICK ANSWER IS YES.

WE HAVE HAD A CHANCE TO DISCUSS THIS FURTHER DURING EWDC PRESENTATION.

BUT THERE WERE REALLY TWO SIMULTANEOUS TRACTS.

THE FEEDBACK WE RECEIVED FROM THOSE WHO WORKED WITH COMPANIES THAT SELECTED US AND DIDN'T SELECT US, AND SOME THAT DON'T HAVE SAN ANTONIO ON THEIR RADAR FROM OTHER AREAS AROUND THE NATION.

BUT IN ADDITION THE OTHER TRACK WAS OUR CUSTOMER PERSPECTIVE PROJECT .

THE IDEA THERE WAS BEYOND JUST TAX ABATEMENT.

IN GENERAL, WHAT IS SAN ANTONIO LIKE TO DO BUSINESS WITH.

FROM A MARKETING PERSPECTIVE WHEN WE WELCOME YOU ALL THE WAY DOWNSTREAM.

UPSTREAM ALL THE WAY DOWNSTREAM TO WHEN WE ACTUALLY CLOSE DEALS.

AND WE HAVE SOME GREAT FEEDBACK THERE.

FEEDBACK THAT WILL MAKE US BETTER AS AN ORGANIZATION.

FEEDBACK THAT WILL MAKE US BETTER AS TEAM SAN ANTONIO.

BUT PART OF THAT FEEDBACK WAS SPECIFIC TO OUR POLICIES.

AND, AGAIN, AS WE MENTIONED EARLIER, THE OPTIONALITY WILL BE VERY HELPFUL.

WE HAD ORGANIZATIONS THAT WERE EXCITED ABOUT SAN ANTONIO, THAT WANTED TO COME HERE.

AND THESE ARE GREAT CORPORATE CITIZENS THAT WE'VE DECIDED WE WANTED TO PURSUE.

THOSE THAT OFFER THE HEALTH BENEFITS.

THEY CHECKED A LOT OF THOSE BOXES BUT THEY HAD TRANSITIONAL OPPORTUNITIES WITHIN THEIR ORGANIZATIONS.

THEY WERE NATURALLY UPSCALING BUT THEY MIGHT NOT HAVE CHECKED THE BOX ON HIGH WAGES RIGHT OUT OF THE GATE.

SO THESE GUIDELINES OPENS UP OPPORTUNITIES FOR THOSE ORGANIZATIONS.

IT SOUNDS LIKE A LOT, AND THE CHANGES ARE A LOT, BUT AT THE END OF THE DAY THIS IS GOING TO PROVIDE MORE OPPORTUNITY FOR THE COMPANIES THAT WE WORK WITH TO QUALIFY FOR POTENTIAL INCENTIVES.

SO THEY SAW IT AS A POSITIVE.

>> PERRY: OKAY.

I THINK THAT'S VERY IMPORTANT TO ADAPT THIS PROGRAM THAT IS VERY EASY TO USE AND IT'S NOT CUMBERSOME AND IT'S COSTING ADDITIONAL MONEY FOR THOSE BUSINESSES TO COME HERE.

SO THAT'S VERY IMPORTANT TO ME.

AND SO I REALLY APPRECIATE YOUR COMMENTS ON THAT AND I APPRECIATE THE COMMENTS I'M HEARING ON RETURN ON INVESTMENT A LOT MORE THAN WHAT I USED TO.

AND I THINK WE NEED TO BE -- AND I HAVE SAID THIS BEFORE -- WE NEED TO BE MORE PROACTIVE IN ADVERTISING WHAT WE'RE GETTING FOR OUR DOLLARS WHEN THESE INCENTIVES ARE GOING TO THESE COMPANIES HERE TO EDUCATE THE PUBLIC OUT THERE ON WHAT WE'RE GETTING IN RETURN OVER TIME FOR THESE INCENTIVES.

SO I THINK THAT'S VERY IMPORTANT TO KEEP THAT ON THE FOREFRONT TO LET PEOPLE KNOW WHAT WE'RE DOING AND WHY.

AND WHAT -- NOT OUR RETURN, WHAT THEIR RETURN IS ON THEIR TAX DOLLARS.

SO THAT'S VERY IMPORTANT.

I REALLY APPRECIATE THE OPPORTUNITY.

Y'ALL INVITED ME TO GO SEE ONE OF THE COMPANIES HERE IN TOWN, AND THAT WAS VERY ENLIGHTENING TO ME.

I ENJOYED THAT DISCUSSION.

AND, AGAIN, I WOULD ENCOURAGE THE REST OF THE FOLKS AROUND THIS TABLE TO PARTICIPATE IN ONE OF THOSE VISITS.

YOU KNOW, AGAIN, BE INVOLVED AND SEE WHAT THOSE COMPANIES ARE REALLY NEEDING AND WHERE THEY NEED OUR HELP TO STAY HERE AND TO GROW OR BRING NEW BUSINESSES HERE TO SAN ANTONIO.

AND, TO ME, JUST AS IMPORTANT, REACH OUT TO THOSE BUSINESSES THAT DID NOT CHOOSE SAN ANTONIO AND DIG DEEP AS TO WHY THEY DIDN'T.

AND KEEP THAT ON THE FOREFRONT IN APPLYING THAT TO THESE PROGRAMS. AND I LOOK AT THIS PROGRAM AS AN ITERATIVE PROCESS OVER TIME, IF WE NEED TO ADJUST IT, WE NEED TO ADJUST IT AND MAKE IT MORE ACCOMMODATING AND HOPE THAT MORE COMPANIES DO COME HERE TO SAN ANTONIO.

>> ONE MORE COMMENT THERE.

THANK YOU FOR YOUR COMMENT AND ALSO FOR PARTICIPATING IN THE RECENT BRE VISIT.

YOU BROUGHT UP A GREAT POINT, THOUGH.

AS WE'RE GETTING FEEDBACK FROM SITE SELECTORS AND COMPANIES THAT WE WORK WITH, THE BEST FORM OF FEEDBACK IS THE FEEDBACK FROM OUR COMPANIES RIGHT HERE IN

[01:10:02]

TOWN, INCLUDING THOSE WE VISIT WITH WITH BRE VISITS, BUT ALSO THOSE THAT SERVE ON MY EXECUTIVE COMMITTEE THAT SHERYL SERVES ON AS WELL.

WE ARE GOING TO THROUGH -- I KNOW YOU'RE A BIG FAN OF OUR KPIS.

WE HAVE A LAUNDRY LIST OF OVER 60.

WE ARE RECOMMENDING WITH OUR PRIVATE INDUSTRY SUPPORT, WE'RE RECOMMENDING ONE OF OUR COMMUNITY INDICATORS WE ADD FOR NEXT YEAR IS ECONOMIC MOBILITY.

WHAT WE DO WITH OUR PARTNERS AT SA WORKS AND OTHER DELEGATE AGENCIES FROM THE CITY SHOULD BE MOVING THAT NEEDLE.

IT'S IMPORTANT THEY REALIZE ECONOMIC MOBILITY IS IMPORTANT.

I WOULD COUPLE THAT WITH FEEDBACK WE HAVE BEEN GIVEN FROM SITE SELECTORS THAT SOMETIMES SAN ANTONIO OR THE ECONOMIC SEGREGATION WILL STRIKE US OFF THE LIST WAY UPSTREAM BEFORE WE EVEN KNOW WE HAVE AN OPPORTUNITY WITH THIS COMPANY.

AND SO IF WE DON'T ADDRESS THESE LONGER TERM NEEDS THAT Y'ALL ARE LOOKING AT TODAY, WE WON'T EVEN HAVE THE SHOT FURTHER DOWNSTREAM TO CLOSE SOME OF THESE DEALS.

I KNOW WE'RE TALKING ABOUT TAX ABATEMENT NOW, WHICH IS DOWNSTREAM, BUT THIS IS IMPORTANT FROM A POLICY PERSPECTIVE AND I'M SO PLEASED THAT Y'ALL ARE THINKING ABOUT IT.

>> PERRY: GREAT.

HEY, THANK Y'ALL VERY MUCH.

APPRECIATE IT.

THANK YOU, SIR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PERRY.

COUNCILMAN SALDANA.

>> SALDANA: THANK YOU, MAYOR.

IF I CAN ASK RENE -- THANK YOU AGAIN FOR COMING BY THE OFFICE AND WALKING ME THROUGH A LITTLE BIT OF THE PRESENTATION.

I'M REALLY HAPPY WITH A LOT OF THE GENERAL DIRECTION WE'RE SEEING, ESPECIALLY IF YOU LOOK AT THE HISTORY OF WHAT WE USED TO INCENTIVIZE AND WHAT QUESTIONS WE DIDN'T ASK.

WE'RE FINALLY ASKING IMPORTANT ONES THAT HAVE LED TO CHECK BOXES THAT YOU NEED TO HIT.

CAN WE LOOK AT PAGE 18? BECAUSE I WANT TO TALK ABOUT THIS IDEA OF ALL OF THE PARTNERS THAT WE USE.

IT'S THE UPSKILL PARTNERS NETWORK.

YOU HAVE IN THE PRESENTATION A NUMBER OF NONPROFITS THAT WE SUPPORT.

AND I KNOW THAT FOLKS FROM SA WORKS ARE HERE TOO THAT ALSO PARTNER WITH THESE GROUPS, UNDERSTAND WHERE IT IS WE'RE MISSING SOME GAPS.

LET ME ASK A QUESTION THAT'S GOING TO GET TO A BIGGER POINT.

IT'S NOT MEANT AS A POP QUIZ, BUT DO YOU KNOW WHAT OUR CURRENT UNEMPLOYMENT RATE HERE IS IN SAN ANTONIO? 3.1?

>> I WAS ABOUT TO SAY 3.1, JENNA, THANK YOU.

[LAUGHTER]

>> SALDANA: EVERYBODY IS ON THEIR TOES.

I'M GLAD.

THANK YOU, JENNA.

3.1.

I REMEMBER A TIME, EVEN WHEN THE RECESSION HIT THE HARDEST ACROSS THE COUNTRY, SAN ANTONIO WAS STILL SEEN AS RECESSION PROOF, THAT OUR RATE WAS HOVERING CLOSE TO 7% WHILE IT WAS 14, 15 IN OTHER PARTS OF THE COUNTRY.

SO AS I THINK ABOUT THE UPSKILL PARTNERS, WHAT YOU TOLD ME, AND MAYBE YOU'LL REPEAT IT HERE, THESE FOLKS, THESE ORGANIZATIONS HAVE LISTS OF INDIVIDUALS HAVE GONE THROUGH, WHETHER IT'S DRESS FOR SUCCESS, CHRYSALIS, RESTORE EDUCATION, THEY HAVE A LIST OF INDIVIDUALS WHO ARE ACTIVELY LOOKING FOR WORK OR TO UPSKILL ON THEIR OWN.

YOU TELL ME THEY HAVE NO ISSUES WITH SHARING THAT INFORMATION, THAT'S SOMETHING -- IT'S A NON-ISSUE.

>> YEAH.

WE'VE ABSOLUTELY TALKED ABOUT THAT.

I'LL LET ADRIAN, WHO IS THE MANAGER OVER THAT WHOLE SYSTEM, SPEAK TO IT A LITTLE BIT.

>> SALDANA: HERE'S WHY I ASK ABOUT THE UNEMPLOYMENT RATE.

I WOULD IMAGINE THAT THE UNEMPLOYMENT RATE IS FOR THOSE LOOKING FOR WORK.

MAYBE IN A ZIP CODE YOU MIGHT SAY FOLKS HAVE GIVEN UP ON LOOKING FOR WORK AND THE UNEMPLOYMENT RATE WOULDN'T REALLY REFLECT THAT.

IS THAT WHAT YOU'RE TRYING TO TIE US TO? THIS I WOULD CATEGORIZE AS INDIVIDUALS LOOKING FOR WORK IN THE LABOR MARKET WHO CAN BE TRACKED BY AN UNEMPLOYMENT RATE, WHICH IS GOOD.

BUT IN YOUR WORK, ADRIAN, YOU'RE LOOKING AT WHAT YOU'VE TERMED AS THE GROWTH NETWORKS.

WHAT ARE THEY CALLED?

>> SALDANA: AND THEN THE INCLUSIVE GROWTH AREA.

THIS IS WHERE I THINK WE'RE GOING TO A 2.0 VERSION WHERE WE'RE NOT JUST LOOKING AT THE FOLKS IN THE LABOR MARKET AND CONNECTING THEM, WHICH I THINK WE SHOULD, BUT YOU'RE SUGGESTING TO SOME EMPLOYERS THAT THEY ACTIVELY GO INTO SOME OF THESE COMMUNITIES, THE TIER ONE, TIER TWO, TIER THREE.

AND WHAT DOES THAT LOOK LIKE? I THINK THAT'S A HARDER ON THE GROUND LOGISTICS.

BUT IF IT MEANS YOU'RE IN MY COMMUNITIES IN 78242 OR OTHERS, IT'S A NEW GROUND FOR US THAT I DON'T THINK WE HAVE EVER HAD A CONVERSATION ABOUT.

>> I THINK YOU'RE KEYING IN ON SOMETHING WE FELT WAS EXTREMELY IMPORTANT IN THE UPSKILL PROJECT TYPE.

THROUGH A TAX ABATEMENT, WE WANT TO GET THE EMPLOYER INVESTED IN THESE TARGETED AREAS AND OVER TIME LOOK AT HOW WE CAN BETTER TARGET THOSE AREAS.

ADDITIONALLY, OUR INTEREST IN THE INFORMATION SYSTEM IS TO FACILITATE THE EMPLOYER BEING ABLE TO IDENTIFY TALENT WITHIN THE UPSKILL PARTNER NETWORK, AVAILABLE TALENT LOOKING FOR JOB.

ADDITIONALLY FOR THE NONPROFITS THAT WE HAVE BEEN PARTNERING WITH.

IF WE PARTNER WITH A LITERACY

[01:15:03]

NONPROFIT, THEIR ENTIRE FOCUS MAY BE LITERACY, NOT FINDING A JOB.

NOT MAYBE MOVING TO THE NEXT STEP.

BY BOLTING ON OUR RFP AND THE CITY'S MONEY, WE'RE NOW ADDING THESE OTHER ELEMENTS TO A NONPROFIT WHO DOES A VERY GOOD JOB AT MAYBE LITERACY AND SAYING NOW LET'S TALK ABOUT HOW CAN WE GET THEM A JOB THROUGH YOU AS WELL? BECAUSE WE'RE GOING TO CREATE INFRASTRUCTURE THAT YOU CONNECT TO THAT IT ENHANCES THE SERVICE THAT YOU'RE PROVIDING.

SO NO LONGER ARE YOU JUST PROVIDING THE SERVICE, NOW THERE'S JOB OPPORTUNITIES ASSOCIATED WITH BEING SERVED BY YOUR BE WHO YOU ARE NONPROFIT.

WE DON'T WANT TO CHANGE YOUR MISSION.

SERVE THAT MISSION.

BUT WHEN YOU TAKE A DOLLAR FROM THE CITY -- ESPECIALLY IF IT'S AN ECONOMIC DEVELOPMENT DOLLAR, THAT THERE'S A JOB OPPORTUNITY ASSOCIATED WITH THAT AND A NEXT STEP FOR THAT PERSON TO GO TO AFTER THEY GET THAT ONE ELEMENT.

SO WE'RE REALLY TRYING TO PUT ALL OF THOSE PIECES TOGETHER THROUGH THIS TYPE OF PROJECT AND THROUGH THE UPSKILL PARTNER NETWORK.

MORE IMPORTANTLY, COUNCILMAN, SOMETHING THAT WILL DIFFERENTIATE THIS APPROACH FROM A LOT OF OTHER APPROACHES IN THAT WE WANT TO TRY TO EVOLVE BY PROVIDING VALUE TO THEM, FROM COUNCILMAN PERRY'S PERSPECTIVE.

IF WE ARE INVESTING IN NONPROFITS HOW CAN WE PUT RFPS OUT? HELPING INDIVIDUALS BECOME MORE RELIABLE AS AN EMPLOYEE.

AND SO THAT'S REALLY OUR INTENT WITH SOME OF THIS.

>> THE ONLY THING I WOULD ADD, COUNCILMAN SALDANA, IN TERMS OF THE INCLUSIVE GROWTH AREA, I THINK THIS IS THE PERFECT REPRESENTATION OF WHAT ADRIAN WAS TALKING ABOUT EARLIER, THE INCLUSIVE GROWTH ACTORS COMBINING WITH THE GROWTH ACTORS.

GROWTH ACTORS BEING THE COMPANIES, EDF OR SHOP.

THESE ARE THE COMMUNITY-BASED ORGANIZATIONS THAT ARE ALREADY IN THOSE COMMUNITIES.

AND IN SOME CASES WORK WITH EMPLOYERS, FAMILY SERVICE S CERTAINLY DOES AND SO DOES GOODWILL.

SO IN A LOT OF CASES THIS IS A WIN-WIN BECAUSE THESE ARE THE AGENCIES THAT ARE BOOTS ON THE GROUND IN THOSE NEIGHBORHOODS ALREADY SERVING THEM.

SO THEY'RE GETTING SERVICES.

SOME CASES THEY MIGHT BE WORKING, BUT NOT ONLY ARE WE PROVIDING THE HAND-OFF, BUT ALSO, AS ADRIAN POINTED OUT, THE ACTUAL JOB OPPORTUNITY AT THE END.

>> SALDANA: GREAT.

THANK YOU.

THAT'S A REALLY GREAT APPROACH.

LOOKING FORWARD TO TRACKING IN ANY CAPACITY WHAT THIS LOOKS LIKE YEARS ON IN THE FUTURE ABOUT HOW WE'VE ACTUALLY CONNECTED THE UPSKILL PARTNER NETWORK TO EMPLOYERS WHO HAVE COME IN.

THE SECOND QUESTION I HAD, NOW ON TO THE EMPLOYERS.

WE'RE NOW ATTRACTING EMPLOYERS THAT OFFER MORE OF A GATEWAY OF OPPORTUNITY THAT I THINK IS IMPORTANT FOR US TO BE PROUD OF TO SAY WE SUPPORT THIS COMPANY BECAUSE IT DOES ALL OF THESE THINGS AND REALLY OFFERS A LEG UP OR A HAND UP FOR OUR COMMUNITY.

SO AS I LOOK AT SOME OF THE CATEGORIES THAT I THINK THEY HAVE TO HIT, THERE'S LIKE THESE BARS THAT YOU MUST HIT THIS BAR, YOU MUST HIT THIS BAR IN ORDER TO RECEIVE A 50% OR 100%.

MY FIRST QUESTION IS ARE THESE THINGS LIKE AS OF RIGHT? IF YOU HIT THESE YOU AUTOMATICALLY GET THE ABATEMENTS? IF YOU'RE AN INDUSTRY THAT MEETS TWO OF THESE PRIORITIES, THAT'S IT.

NO QUESTIONS ASKED.

I MET THE BARS AND THE CATEGORIES.

I DON'T HAVE TO COME BEFORE A COUNCIL OR I DON'T HAVE TO COME BEFORE ANYONE ELSE TO REVIEW THIS?

>> NONE OF OUR PROJECTS ARE AS OF RIGHT.

EVERY SINGLE PROJECT COMES BEFORE COUNCIL, IS NEGOTIATED, AND NOT ONLY ARE THERE REQUIREMENTS WITHIN THE CONTRACT IN TERMS OF SOME OF THESE THINGS, BUT THERE'S ALWAYS CALL-BACK AND RECAPTURE PROVISIONS IN ALL OF OUR CONTRACTS.

IT'S ALSO NOT AS OF RIGHT IN TERMS OF DO THEY JUST CHECK THE BOX.

FROM A TARGETED INDUSTRY STANDPOINT THERE ARE CODES THAT WE'LL BE REFERRING TO TO MAKE SURE THAT THE MAJORITY OF THEIR BUSINESS ACTIVITIES ARE WITHIN THAT INDUSTRY.

HIGH WAGES, THAT'S A REPORT THAT WE WOULD GENERATE IN TERMS OF WHAT WAGES ARE THOSE INDIVIDUALS RECEIVING WITHOUT BENEFITS.

AND SO NONE OF THEM ARE NECESSARILY AS OF RIGHT OR JUST CHECK THE BOX.

WE HAVE TO VERIFY THAT THEY'VE MET A MINIMUM THRESHOLD.

SO WHAT WE'RE DOING IS CREATING MINIMUM SORT OF YARDSTICKS FOR EACH OF THESE ACTIVITIES TO MAKE SURE THEY AT LEAST DO THIS.

SO A LOT OF COMPANIES HAVE PAID INTERNSHIPS WITHIN THEIR COMPANIES AND WE WANT TO GIVE THEM CREDIT FOR THAT.

WE DON'T WANT THEM TO HAVE TO SIGN UP FOR SOMETHING NEW.

BUT THERE'S A CERTAIN TYPE OF INTERNSHIP WE'RE DOING.

ARE THEY PAID, ARE THEY HIGH SCHOOL, ARE THEY COLLEGE? WHERE ARE THOSE INTERNSHIPS? WHAT'S THE EXPERIENCE THE STUDENT IS HAVING? SO WE CREATE THE MINIMUM THRESHOLDS THEN WE MONITOR THOSE.

THAT'S A REQUIREMENT THAT WOULD BE IN PLACE IN FIVE YEARS, AND THAT 5% SPAN.

SO THOSE ARE THE THINGS WE WOULD BE CHECKING.

>> SALDANA: GOTCHA.

IT ISN'T THE CASE -- YOU KNOW, THE ONLY PROJECT THAT I THINK WE'VE EVER INCENTED BUT IT WAS A ROUNDABOUT WAY THAT I THOUGHT THAT'S NOT THE INDUSTRY OR JOB

[01:20:03]

THAT WE COULD BE PROUD OF AND THAT WAS THE NOODLE PLANT.

THAT WAS A ANNEXATION AGREEMENT.

THEY WOULD PROBABLY MAKE THE CASE AND SAY WE HAVE PAID INTERNSHIPS, WE DO HIRING ESPECIALLY FROM AREAS, AND WE CAN DO SOME OF THESE PARTNERSHIPS.

>> JUST TO KEEP IN MIND, JUST TO GET IN THE FRONT DOOR WITH US FOR TRADITIONAL INDUSTRY PROJECTS, THE LIVING WAGE IS STILL IN PLACE.

HOWEVER IN CASES LIKE THAT OR DISTRIBUTION CENTERS OR LOGISTIC OPERATIONS, THE UPSKILL NETWORK MIGHT BE AN OPPORTUNITY.

IT REALLY OPENS THE DOOR FOR US.

AGAIN, THOSE AREN'T GOING TO BE COMPETITIVE PROJECTS.

THE COMPANY COMES IN AND SAYS YOU'RE EITHER GOING TO GIVE US THIS ABATEMENT OR WE'RE GOING TO XYZ COMMUNITY.

THAT'S OKAY.

WHAT WE'RE LOOKING FOR ARE PARTNERSHIPS.

IF WE CAN CREATE THAT PARTNERSHIP THEN PERHAPS AN ABATEMENT WOULD BE THE RIGHT CHOICE.

IN EITHER CASE IT COMES TO COUNCIL FOR APPROVAL.

>> SALDANA: GREAT.

THANK YOU AGAIN FOR THE PRESENTATION AND HAVING COME TO MY OFFICE TO TALK THIS THROUGH.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN SALDANA.

COUNCILMAN PELAEZ.

>> PELAEZ: THANK YOU, MAYOR.

EXCELLENT WORK, GUYS.

AND I'M GOING TO GIVE YOU SOME PREAMBLE COMMENTS BEFORE I JUMP INTO IT, BECAUSE I DON'T WANT YOU TO THINK THAT I DON'T -- THAT I DOUBT THE EFFORT THAT YOU GUYS PUT INTO THIS.

BECAUSE I THINK IT'S REALLY GOOD WORK.

I'M JUST CONCERNED AND SO I NEED YOUR HELP TO MAKE SURE I'M NOT CONCERNED OR THAT I'M NOT CONCERNED FOR THE RIGHT REASONS.

AND SO THE OTHER PREAMBLE STATEMENT IS THAT, YOU KNOW, EQUITY IS A VALUE.

AND CERTAINLY THERE IS A COMPELLING ARGUMENT TO BE MADE THAT WE NEED TO ALIGN OUR EQUITY VALUES ALONG WITH OUR ECONOMIC DEVELOPMENT EFFORTS.

AND I'M ON BOARD 100%.

AND I THINK THAT YOU GUYS ARE WORKING ON WHAT EVERY ONE OF OUR DEPARTMENTS SHOULD BE WORKING ON, WHICH IS HOW TO ALIGN OUR EQUITY VALUES WITH OUR DAY-TO-DAY OPERATIONS.

AND SO MY CONCERN IS, HOWEVER, THAT NO MATTER HOW WELL INTENTIONED THESE POLICY CHANGES MIGHT BE THAT THEY JUST MIGHT NOT WORK.

THAT'S IT.

AND THAT'S ALWAYS MY CONCERN WHEN IT COMES TO POLICY.

JENNA, I DON'T THINK ANYBODY ON YOUR BOARD WILL DISAGREE WHEN I SAY THE ONE QUESTION WE CONSTANTLY ASK OURSELVES WHEN IT COMES TO TAX ABATEMENTS ARE WE REALIZING TAX BASE BENEFITS AT LEAST COMMISERATE WITH LOSS OF REVENUE TO THE CITY.

YOU GUYS ARE DOING A GREAT JOB AT MAKING SURE TO ANSWER THAT QUESTION ALL THE TIME.

I DO THINK, HOWEVER, THAT WE ALSO NEED TO AT THE SAME TIME NEED TO BE ASKING ALL THE TIME IS HOW DO WE KNOW THIS IS GOING TO WORK.

WHILE WE CERTAINLY DON'T HAVE CRYSTAL BALLS, WE CAN CERTAINLY, YOU KNOW, FORECAST BASED ON INFORMATION THAT WE'VE EXPERIENCED AND MAKE INFORMED DECISIONS AND BENCHMARKING.

THE LAST TIME YOU GUYS GAVE THIS PRESENTATION TO THE ECONOMIC DEVELOPMENT COMMITTEE I REMEMBER THERE WAS A LIST OF 22, 21 CITIES UP THERE THAT HAD SIMILAR POLICIES.

RIGHT, RENE?

>> RIGHT.

THEY WERE DEVELOPING OUT POLICIES.

I WOULDN'T CHARACTERIZE THEM AS SIMILAR, BUT THEY WERE STARTING TO LOOK AT INCLUSIVE GROWTH TYPE OF PROGRAMS.

>> PELAEZ: GREAT.

I DON'T KNOW IF THEY ARE STARTING TO OR IF THEY ALREADY HAVE.

AND I DON'T KNOW HOW LONG THOSE HAVE MAYBE BEEN IN PLACE.

I KNOW THAT YOU GUYS HAVE DONE SOME BENCHMARKING BECAUSE YOU SHOWED US LISTS WHERE DENVER AND BALTIMORE WERE ON THE SCREEN, BUT THOSE WERE BENCHMARKS OF CURRENT STATUS OF POVERTY INDICATORS AND DISTRESS INDICATORS.

IS THERE ANY EVIDENCE WE CAN GET FROM THOSE CITIES THAT HAVE IMPLEMENTED SIMILAR POLICIES THAT THIS WORKS? ANY?

>> COUNCILMAN, SO THAT WAS PART OF THE POINT THAT WE WERE MAKING EARLIER, WHY WE BROUGHT UPS INTO THE CONVERSATION.

THERE IS SOME, BUT IT'S SCARCE.

BECAUSE THIS CONCEPT OF USING YOUR VERY SHARP GROWTH-ORIENTED TOOLS, THE ONES YOU USED TO TAKE DOWN THE BIG JOB CREATION PROJECTS.

THAT'S RELATIVELY NEW IN TERMS OF HOW ARE YOU USING THAT EQUITABLY.

WAR ON POVERTY PROGRAMS HAVE BEEN AROUND FOR DECADES.

THAT'S NOT WHAT WE'RE TALKING ABOUT.

THEY'RE WORKING WITH NEIGHBORHOODS, WORKING WITH DIFFERENT GROUPS.

THAT'S SILOED FROM THIS KIND OF INCLUSIVE GROWTH PERSPECTIVE OF GETTING THE GROWTH FACTORS INVOLVED AND THOSE TOOLS SPECIFICALLY.

IT'S RELATIVELY NEW.

THIS WHOLE CONCEPT OF AN ECONOMY

[01:25:05]

EMBLEMATIC OF HOW MAJOR METROS ARE GROWING POST RECESSION.

MAJOR METROS WHO ARE GROWING QUICKLY ARE DIVIDED AND HAVING A DUAL ECONOMY CREATED.

THAT'S SOMETHING EVEN THE BROOKINGS INSTITUTE IS SAYING LET'S HAVE A CONVERSATION AND TALK ABOUT WHAT'S STRUCTURALLY WHAT'S GOING ON.

HOW CAN WE PULL THOSE ELEMENTS TOGETHER.

THAT'S WHY YOU'RE NOT SEEING HERE'S A TRIED AND TRUE PROGRAM.

IF YOU DO THIS PROGRAM IT WILL WORK OUT.

BECAUSE THE TOOLS WE'RE LOOKING AT AND HOW WE'RE TRYING TO HAVE THAT BALANCE IN TERMS OF EFFECTIVENESS AND SECURING JOB BUT STILL HAVING AN IMPACT IS REALLY THE NET NEW HERE.

AND SO THERE'S SOME EXAMPLES, BUT THERE ISN'T ONE THAT WE HAVE BEEN ABLE TO IDENTIFY TO SAY THIS PROGRAM HAS BEEN WORKING FOR TEN YEARS IN THIS PARTICULAR COMMUNITY.

THEY DO THEIR TAX ABATEMENTS JUST SO THAT THEY ARE ABLE TO FURTHER THE GAME FOR EVERYBODY.

>> LET ME ADD TO THAT, BECAUSE I THINK ANOTHER QUESTION THAT I'LL BE ASKING SITE IS IS IT WORKINGR US? SO FROM A PROGRAMMATIC STANDPOINT, WE ARE ABLE TO TRACK PROGRAMATICALLY METRICS, JOB CREATION, PRIVATE SECTOR LEVERAGE, TARGETED INDUSTRY PROJECTS.

AND WE'LL BE ABLE TO COMPARE HOW WE'VE DONE IN THE PAST TO HOW WE'RE DOING NOW.

SO FROM A PROGRAMMATIC STANDPOINT, THE METRICS JENNA WAS TALKING ABOUT, THOSE KPIS, WE HAVE TONS OF DATA ON OUR SUCCESS SO FAR.

SO IMPLEMENTING THIS POLICY REALLY WILL BE ABLE TO BE COMPARED TO THAT.

LIKE I SAID, WE HAVE DONE TWO OR THREE A YEAR.

IF ALL OF A SUDDEN WE DO ZERO THERE'S GOING TO BE A RED FLAG GOING ON.

IF I'M PRESENTING TO YOU PROJECTS THAT WE'RE VYING FOR AND NOT SECURING, THAT'S A PROBLEM.

WE SHOULD BE ABLE TO ANSWER THAT.

SO FROM A SUCCESS STANDPOINT, WE ARE GOING TO GET INSTANT FEEDBACK ON HOW WE'RE DOING IN TERMS OF SECURING JOBS.

>> PELAEZ: OKAY.

SO THAT MAKES ME FEEL REALLY GOOD, RIGHT? SO THAT THIS IS NOT A PROGRAM WE'RE JUST PUTTING OUT THERE AND THEN HOPE IT WORKS.

WE'RE DOING THAT WHOLE PLAN DO CHECK ACTION 360 PROCESS REALTIME, EVERY TIME WE DO A DEAL?

>> WE HAVE METRICS, OUR 24/7 REPORT, THE METRICS ARE REPORTED TO Y'ALL AS BOTH JOBS AND INVESTMENT .

JENNA TRACKS THIS.

IT'S PART OF OUR KPIS.

>> PELAEZ: MY FEAR, JENNA, IS THAT EVERY CITY, EVERY COUNTY NOW HAS AN EDF OR SOME VERSION OF IT.

AND WE'VE LOST DEALS TO VICTORIA.

AND WE'VE LOST DEALS TO GUADALUPE AND SCHERTZ AND SEQUIN.

>> THAT'S NOT JENNA'S FAULT.

>> PELAEZ: THEY HAPPEN.

WE LOSE DEALS FOR WHATEVER REASONS.

BUT THE LAST THING I WANT IS TO HAVE YOU IN A ROOM WITH WITH A DECISION MAKER AND SAY WE THINK THIS IS AWESOME BUT SPEND 50% OF OUR INCENTIVES ON YOUR EQUITY PROGRAMS? GUADALUPE IS NOT MAKING US DO THAT.

WE WOULD RATHER GO OVER THERE.

AND AMAZON GO OVER THERE.

I KNOW WHAT YOU SAID.

THERE'S CERTAIN COMPANIES WE WANT TO DO BUSINESS WITH AND OTHERS WHO DON'T ALIGN WITH THOSE VALUES, WE DON'T WANT TO.

THAT'S FINE.

>> THE OTHER CLEVER THING WE HAVE BEEN DOING -- AND YOU HAVE BEEN SEEING THIS REALTIME FIRSTHAND.

IF YOU NOTICE THOSE FIVE DIFFERENT CHOICES -- AND WE BEGAN THIS EFFORT A YEAR AGO.

I'VE BEEN NEGOTIATING THOSE INTO RECENT CONTRACTS THAT WE'VE TAKEN TO COUNCIL FOR THAT VERY REASON.

WHERE IS THAT OUTER BOUNDS? WHERE CAN WE REALLY PUSH? WHERE DO WE HAVE SHARED VALUES WITH THOSE COMPANIES? AND WHAT YOU SEE REPRESENTED BEFORE YOU ARE THOSE EXACT THINGS.

THOSE THINGS THAT COMPANIES ARE SAYING, HEY, I'LL DO THAT.

COMMERCIAL RECYCLING AS FAR AS BEING A GOOD CORPORATE CITIZEN, YES.

EMPLOYEE ASSISTANT PROGRAM.

WE OFFER THAT NOW, YES.

PAID INTERNSHIPS.

BIG ONE.

THAT'S THE ONE I HAVE BEEN PUSHING A LOT LATELY.

YES.

BY DESIGN WE HAVE NOT ONLY BEEN TESTING THIS BUT ALSO ALIGNING IT WITH THE S.A. TOMORROW GOALS.

>> PELAEZ: AND THEN LASTLY I THINK IT WAS THE FIFTH BULLET POINT OR SLIDE WHATEVER THAT MR. THE SITE SELECTOR SAID IT'S IMPORTANT TO LIFT THE BURDEN OF REGULATION AND MAKE IT EASIER TO DO BUSINESS.

AND THEN YOU SAID RENE AND HIS DEPARTMENT ARE BEING CAREFUL TO MAKE SURE THIS DOESN'T IMPEDE THEIR ABILITY TO DRIVE AND SUCCEED.

MY CONCERN IS ARE WE LOOKING JUST AS HARD AS LOOKING AT EXISTING REGULATIONS AND LIGHTNING THAT BURDEN? WHAT THE BUSINESS COMMUNITY KEEPS TELLING US OVER AND OVER AGAIN IS IT'S HARD ENOUGH ALREADY.

DON'T WORRY ABOUT ADDING NEW ONES.

THE ONES WE ALREADY HAVE IN PLACE HURT ENOUGH.

TALK TO ME ABOUT THAT.

>> WE WON'T BELABOR IT, BUT THE CUSTOMER PERSPECTIVE SURVEY THAT JENNA MENTIONED EARLIER IS CAPTURING A LOT OF THAT.

IN ADDITION TO THAT, WE ARE

[01:30:01]

INTRODUCING ANOTHER PROGRAM, THE FEE WAIVER PROGRAM, THE BUSINESS FEE WAIVER PROGRAM.

AND NOW WE'RE ATTACHING OUR SMALL BUSINESS LIAISON SPECIFICALLY TO THOSE DEVELOPMENT PROCESSES, BASICALLY WALKING HAND IN HAND WITH SMALL BUSINESSES THAT WANT TO EXPAND TO REALLY EXPERIENCE WHAT THAT IS LIKE IN TERMS OF DEVELOPMENT.

AND ONE OF THE MAIN GOALS -- ONE OF THE MAIN REASONS WE DID THAT WAS TO GATHER INFORMATION ON WHERE ARE BUSINESSES ENCOUNTERING THOSE BARRIERS? WHAT IS FRUSTRATING THEM TO WHERE THEY'RE SAYING DEVELOPMENT AND EXPANSION IS HARD? SO NOT ONLY IS JENNA CAPTURING THAT INFORMATION BUT NOW THROUGH OUR SMALL BUSINESS LIAISON AND OUR FEE WAIVER PROGRAM, WE'RE EMBEDDING AN ACTUAL EMPLOYEE WITH THOSE EXPANSIONS TO EXPERIENCE THAT FIRSTHAND TO GATHER THAT DATA.

>> PELAEZ: I AM IN SUPPORT.

THANKS, GUYS.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PELAEZ.

COUNCILWOMAN GONZALES.

>> GONZALES: THANK YOU.

SO WE'VE HEARD IT A COUPLE OF TIMES.

SO I DON'T HAVE TOO MANY QUESTIONS.

BUT I DO HAVE A QUESTION ABOUT THE UPSKILL PARTNERS.

YOU KNOW, MY SON'S NOW HAVING WORKED WITH A LOT OF OUR NONPROFITS, BECAUSE SO MANY ARE IN MY DISTRICT.

IF A COMMUNITY MEMBER IS ATTACHED TO A NONPROFIT, ALMOST ANYONE THAT'S GOOD , SORT OF THE ONES WE HEAR OF LIKE FAMILY SERVICES OR QUEST OR THE YMCA, YW, GOODWILL, THE GOOD SAMARITAN, SAYC, THEY HAVE PRETTY GOOD OUTCOMES.

IT'S THOSE THAT ARE NOT CONNECTED TO ANY NONPROFIT OR SERVICES AND WHY I THINK WE NEED TO FOCUS MORE OF OUR ATTENTION IN THE COMING YEARS ON DEDICATING MORE TO OUR DELEGATE AGENCIES.

I THINK THIS IS WHAT REALLY WILL HELP US.

SO DO YOU HAVE SOME IDEA OF HOW MANY PEOPLE WILL GO THROUGH THE UPSKILL PARTNER? BECAUSE MY SENSE IS THAT ONCE THEY ARE ALREADY ATTACHED TO ONE, THEY DO PRETTY WELL.

>> WE DO.

THERE'S AROUND 4,000 PARTICIPANTS.

I WAS LAUGHING BECAUSE ADRIAN HAD A SLIDE ON SORT OF THE FLOW OF PARTICIPANTS TIMES SKILLED PROJECTS.

DO YOU HAVE ANY OF THAT DATA ON WHAT WE ANTICIPATE IN TERMS OF OUTCOMES?

>> WHAT WE'RE TRYING TO DO IS REFRAME HOW WE LOOK AT PROGRESS ON A YEAR BY YEAR BASIS.

SO YOU MAY HAVE SOMEBODY WHO LEARNS TO READ, AND THAT'S DEFINITELY PROGRESS.

OR WE WANT TO START MEASURING HOW MANY FOLKS CAN ACTUALLY MAKE THAT NEXT JUMP AND GET TO SOME GED TRAINING.

SO ROUGHLY, YOU KNOW, DEPENDING ON WHAT OUTCOME YOU'RE TALKING ABOUT, EACH ONE OF THE DIFFERENT DELEGATE AGENCIES HAS DIFFERENT OUTCOMES.

IF THEY'RE SERVING 4,000, YOU HAVE TO ZERO IN ON WHAT OUTCOME WE'RE LOOKING FOR.

HOW MANY FOLKS WOULD BE SERVED? 4,000.

1800 MOST LIKELY IN THE SYSTEM THAT WE CAN VALIDATE AND LOOK AT FOR PROGRESS.

AND THEN EACH INDIVIDUAL DELEGATE AGENCY WOULD HAVE METRICS THAT THEY WOULD BE LOOKING TO HIT.

I HAVE ANY WORKFORCE DEVELOPMENT, MY STAFF TEAM HERE.

IS THERE A SPECIFIC NUMBER?

>> GONZALES: I'M SURE EACH AGENCY KNOWS HOW MANY PEOPLE THEY SERVE.

AND, YOU KNOW, OF COURSE IF IT'S A FAMILY AND THERE ARE CHILDREN, YOU KNOW, THEY'RE JUST TRYING TO ADVANCE TO THE NEXT GRADE LEVEL.

BUT WE KNOW THAT IF OUR KIDS WILL STAY ON GRADE LEVEL THAT THEY WILL EVENTUALLY, YOU KNOW, ADVANCE TO MORE SKILLED WORK.

THEY ARE ALREADY CONNECTED TO AN AGENCY.

SO THEY'LL GET THE WORK THERE, OR THE SERVICES.

THAT'S THE IDEA, ANYWAY.

IF THEY CONTINUE TO STAY IN THE PROGRAM.

IT'S ONCE THEY DROP OUT OF THE PROGRAM THAT WE HAVE ALL THESE NEGATIVE OUTCOMES.

THE FAMILY SERVICES ASSOCIATION IS VERY LARGE AND BROAD IN TERMS OF WHAT THEY SERVE.

I MEAN, I GUESS IS THERE ANY WAY TO -- BECAUSE 1800 SOUNDS LIKE A REALLY SMALL NUMBER WHEN WE'RE TALKING ABOUT THE WORKFORCE THAT WE NEED TO JUST SUPPLY.

>> RIGHT.

KEEP IN MIND THE FRAMEWORK ON THE UPSKILL NETWORK IS TO HIRE A PERCENTAGE FROM THE ENTIRE INCLUSIVE GROWTH AREA.

THOSE AREAS TIER ONE AND TIER TWO.

OR THIS NETWORK.

THIS IS MEANT TO JUST BE ANOTHER TOOL IN THAT TOOLBOX IN TERMS OF ACCESSING THE MOST DISTRESSED IN OUR COMMUNITY.

OR THE POPULATION THAT INCLUDES VETERANS AND THE INCARCERATED.

IT'S GOING TO BE A COMBINATION OF ALL OF THOSE THINGS.

THE VALUE OF THE UPSKILL NETWORK IS REALLY HAVING THEM COME ON SITE AND PROVIDING WRAPAROUND SERVICES AND THE SKILLS DEVELOPMENT WITH THE EMPLOYEES.

AND, TO BE HONEST WITH YOU, THIS IS A PILOT.

DO WE KNOW THAT COMPANIES ARE GOING TO SAY YES WE'RE GOING TO LET YOU COME ON SITE AND DO THAT? WE DON'T KNOW.

WHAT WE'RE SAYING IS THROUGH THIS POLICY ARE THERE PROJECTS OUT THERE THAT ARE WILLING TO

[01:35:01]

HAVE THAT CONVERSATION? AND THEN ONCE WE DO HAVE IT, IT'S NOT A RISK BUT IT'S GOING TO BE DEFINITELY A CHALLENGE FOR US TO MAKE THIS ALL WORK TO WORK WITH THE COMPANY, TO HIRE THOSE POPULATIONS, TO GET THEM TO ENROLL IN THIS AND TO GET THEM TO HAND OFF.

WE'RE LOOKING TO PILOT THIS FOR THE NEXT TWO YEARS TO DETERMINE THOSE OUTCOMES.

>> GONZALES: I UNDERSTAND THAT THEY'RE A PILOT, AND I THINK THAT'S REALLY IMPORTANT, BECAUSE WE DO HAVE TO TRY THINGS TO SEE IF THEY WILL BE SUCCESSFUL OR NOT.

BUT DO YOU HAVE A LARGE ENOUGH SAMPLE? IF YOU'RE TALKING ABOUT POTENTIALLY TWO A YEAR, THAT'S ASSUMING THAT -- RIGHT? LIKE EVERYTHING GOES AS PLANNED YOU GET TWO A YEAR.

IS THAT SUFFICIENT TO SAY THAT THIS MODEL IS SUCCESSFUL?

>> SO THE REASON WE'RE LOOKING AT TWO A YEAR IS BECAUSE IT CERTAINLY IS A CAPACITY ISSUE WITH THE NONPROFITS AS WELL.

WE DON'T KNOW WHAT WE DON'T KNOW.

SO WHAT WE WANT TO DO IS FIND THE OUTER BOUNDS OF WHAT EMPLOYERS ARE WILLING TO PARTNER WITH US ON.

ADDITIONALLY, TO GO BACK TO YOUR PREVIOUS QUESTION, COUNCILWOMAN, WHAT WE WANT TO DO WITH THE NONPROFITS IS ALSO LOOK AT, WHEN WE SAY OUTCOMES WHAT ARE WE MEASURING, WHAT DO WE CONSIDER MEANINGFUL? GOAL IS THAT THEY GET A LIFE-SUSTAINING JOB AND THEY ARE SELF-SUFFICIENT, WE WANT TO ALSO CELEBRATE WHEN SOMEBODY MOVES FROM ONE MILESTONE TO THE NEXT AND FOCUS ON WHERE THOSE BOTTLENECKS ARE.

THERE'S A LOT OF FOLKS AT THE FRONT END OF THAT PATHWAY AND THE JOBS WE ARE TALKING ABOUT ARE MAYBE OUT OF REACH.

WE'RE TRYING TO CELEBRATE EACH ONE OF THOSE ELEMENTS.

SO THAT WOULD BE KIND OF THE

>> AND TWO WOULD BE A VICTORY.

KEEP IN MIND, ON AVERAGE IN THE LAST TWO YEARS, WE HAVE ONLY DONE TWO TO THREE PROJECTS IN TOTAL, INCLUDING THE TARGETED INDUSTRY PROJECTS.

YEAH, I DON'T KNOW.

THIS IS NET NEW INVESTMENT.

LET'S PROVIDE A LITTLE BIT MORE CONTEXT.

FROM AN ABATEMENT STANDPOINT WE CAN'T ABATE TAXES THAT ARE ALREADY ON THE ROLLS.

THIS IS A COMPANY COMING IN IN A COMPETITIVE SETTING AND ASKING US TO ABATE TAXES, OF WHICH WE DO TWO OR THREE A YEAR.

SO I HOPE WE GET AT LEAST TWO.

THAT WOULD BE GREAT.

BECAUSE WE ONLY TWO OR THREE OF THESE.

TO BE HONEST WITH YOU, WE'RE NOT GOING TO LOSE OUR FOCUS ON TARGETED INDUSTRIES.

IT'S GOING TO BE A REAL EXPERIMENT THIS NEXT YEAR ON HOW MANY PROJECTS.

NOW, I WILL SAY IN THE PIPELINE DO WE HAVE A PROJECT THAT MEETS THIS PROFILE? WE HAVE ONE THAT MEETS THIS PROFILE SO WE KNOW THEY EXIST.

>> GONZALES: I LOOK FORWARD TO THAT BECAUSE I AM CONCERNED THAT IT'S GOING TO TAKE TOO LONG TO REALLY GET THE RESULT THAT WE'RE AFTER.

AND WE'RE ALREADY FALLING FURTHER AND FURTHER BEHIND.

WE AS A CITY CONTINUE TO FALL BEHIND IN OUR OPPORTUNITY YOUTH.

WE CONTINUE TO FALL BEHIND IN I THINK WORKFORCE DEVELOPMENT, AT LEAST THAT'S SOME OF THE NUMBERS THAT WE'RE SEEING.

WE CONTINUE TO BE MORE POOR.

WE CONTINUE TO FALL BEHIND IN EDUCATIONAL ATTAINMENT IN SOME AREAS OF THE CITY.

AND THE INEQUALITY AND SEGREGATION CONTINUES.

INCOME SEGREGATION CONTINUES.

SO I'M JUST CONCERNED THAT IT'S NOT GOING TO BE FAST ENOUGH TO REVERSE THE TREND.

SO I LOOK FORWARD TO, YOU KNOW, CONTINUING THE FEEDBACK.

I RECOGNIZE, YOU KNOW, THIS HAPPENED OVER A PERIOD OF TIME.

IT WASN'T IMMEDIATE.

IT'S TAKEN A LOT OF YEARS FOR US TO BE, YOU KNOW, THE LARGEST INCOME SEGREGATED CITY IN THE COUNTRY.

BUT AT THE SAME TIME I FEEL LIKE WE NEED TO MOVE QUICKER TO RESOLVE IT.

AND SO I RECOGNIZE THIS IS JUST ONE PART OF MANY THINGS THAT WE HAVE TO DEAL WITH AS A CITY.

BUT I THINK IT COULD START HERE WITH MORE FUNDING TO DELEGATE AGENCIES AND ATTENTION TO WORKFORCE AS WE MOVE FORWARD.

SO THANK YOU.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN GONZALES.

COUNCILMAN COURAGE.

COURAGE: THANK YOU, MAYOR.

I THINK YOU'VE DONE A PRETTY THOROUGH JOB OF EXPLAINING EVERYTHING.

I HAD PROBABLY FOUR OR FIVE QUESTIONS BUT WE'VE GONE THROUGH MOST OF THEM.

BUT LET'S GO BACK TO SLIDE 13.

AND I WANT TO HAVE AN EXPLANATION ON ITEM NO. 2, PRIORITY NO. 2.

HIGH WAGES, $50,000 OR MORE.

WHAT PERCENTAGE DO WE REQUIRE TO MEET THAT PRIORITY?

>> 30%.

>> COURAGE: OKAY.

AND THEN -- GO AHEAD.

>> AT A MINIMUM.

>> COURAGE: OKAY.

AND THEN FOR NO. 3.

I WAS OUT OF THE ROOM AND I KNOW YOU TALKED A LITTLE BIT ABOUT INTERNSHIPS.

COULD YOU EXPLAIN WHAT ALL THE

[01:40:01]

INGREDIENTS ARE OR COULD BE IN PRIORITY THREE?

>> CERTAINLY.

SO PRIMARILY WE'RE LOOKING FOR THE COMPANY TO AGREE TO INVEST 5% OF THEIR ABATEMENT VALUE IN PAID INTERNSHIPS.

>> COURAGE: EACH YEAR?

>> FOR THE LIFE OF THE AGREEMENT.

5% IS REALLY JUST A STARTING POINT TO GET TO A DOLLAR FIGURE WE CAN MONITOR AGAINST.

WHAT WE HAVE SEEN IS MOST COMPANIES INVEST FAR MORE THAN THAT OVER A PERIOD OF TIME.

BUT THIS IS REALLY TO HAVE A CONVERSATION ABOUT HERE IS A TANGIBLE DOLLAR AMOUNT WE COULD MONITOR AGAINST ON PAID INTERNSHIPS.

WE WANT TO CONNECT THEM WITH PARTNERS LIKE SA WORKS AND HAVE THOSE INTERNSHIPS BE PAID.

REALLY COMMITTING TO DEVELOPING THAT WORKFORCE PIPELINE AND GETTING THEM ORIENTED TO WORKFORCE PARTNERS LIKE SA WORKS.

AND THAT THIS IS A STRONG VALUE THAT WE HAVE HERE IN SAN ANTONIO.

>> COURAGE: THAT'S WHAT I WANTED TO HEAR.

>> THE CONTINUING EDUCATION SUPPORT -- I DON'T KNOW IF YOU HAVE HEARD OF UPGRADE.

WE ACTUALLY HAVE IT HERE AT THE CITY.

THAT'S KIND OF LIKE YOUR HEALTH COACH BUT IN TERMS OF PROVIDING ADDITIONAL SUPPORT AROUND UPSKILLING.

AND SO THE MONEY COULD BE USED FOR PAID INTERNSHIPS OR PROMOTING THE IDEA OF BRINGING SOMEONE ON SITE TO ALSO HELP MENTOR INDIVIDUALS WHO HAVE HAD SOME EXPOSURE TO HIGHER EDUCATION.

PERHAPS STOPPED BUT NEEDS TO CREATE THAT PATHWAY.

THERE'S A COUPLE OF ELEMENTS.

THE ONLY CORRECTION, IT'S NOT FOR THE LIFE OF THE AGREEMENT.

RIGHT NOW IT'S CURRENTLY WRITTEN AS WE'RE CONSIDERING THEM, ENSURING THOSE PAID INTERNSHIPS ARE IN PLACE FOR FIVE YEARS.

>> COURAGE: ONLY FIVE.

BUT THEY CAN GET THE TAX ABATEMENT FOR TEN.

>> THAT'S RIGHT.

>> COURAGE: AND THEY ONLY HAVE TO PROVIDE THE MINIMUM.

>> THAT'S WHAT WE'RE PROPOSING.

WHAT WE FOUND THAT COMPANIES KEEP THOSE INTERNSHIPS -- THAT'S AN ESSENTIAL PART OF DEVELOPING A COMPANY'S WORK PIPELINE RIGHT NOW.

WE SEE COMPANIES HAVING LONG-STANDING PAID INTERNSHIP PROGRAMS ALREADY IN PLACE.

>> COURAGE: I WOULD SURE LIKE TO SEE US ASK THEM MAKE IT FOR THE LIFE OF THE CONTRACT.

AND IF ANY IF THEY PUSH BACK SAY MAYBE WE CAN DO IT FOR HALF THE LIFE OF THE CONTRACT.

I LIKE TO BARGAIN AUDIO].

THE OTHER THING, AND I THINK YOU TOUCHED ON THAT.

AND IT GOES ALONG WITH WHAT COUNCILWOMAN GONZALES JUST SAID.

YOU KNOW, WE NEED TO HAVE EDUCATION SUPPORT AND WORKFORCE DEVELOPMENT.

SO I SEE YOU HAVE CONTINUING EDUCATION SUPPORT.

FOR EXAMPLE, IF SOMEBODY WANTED TO GO TO COLLEGE, GO TO SACK, GET CERTIFIED IN A CERTAIN AREA, THEY COULD PAY FOR THAT AND THAT WOULD BE PART OF MEETING THAT REQUIREMENT.

>> CURRENTLY WE WEREN'T CONSIDERING THAT.

WE WERE CONSIDERING PERHAPS SOMETHING LIKE THE UPGRADE PROGRAM BEING PUT IN PLACE.

BUT WE'RE LOOKING FOR FEEDBACK.

SO IN TERMS OF A CHOICE, PAID INTERNSHIPS OR IF THEY DON'T HAVE AN EMPLOYEE REIMBURSEMENT PROGRAM, WOULD THEY CREATE THAT.

WE'RE ABSOLUTELY OPEN TO ADDING THAT TO THE LIST.

>> COURAGE: AND WORKFORCE DEVELOPMENT.

WHAT ABOUT JUST MAKING A 5% CONTRIBUTION TO ONE OF THE WORKFORCE DEVELOPMENT GROUPS LIKE QUEST OR SOMETHING SO THAT WE'RE STILL GETTING THE FINANCIAL INPUT BUT MAYBE AT CERTAIN TIMES IT WOULD FIT INTO CERTAIN AREAS MORE BENEFICIALLY TO THOSE ORGANIZATIONS.

I WANT TO THINK ABOUT THAT TOO.

OTHERWISE, YOU'VE PRETTY MUCH CONVINCED ME THAT THIS IS A PROGRAM THAT WE OUGHT TO BE SUPPORTING WHEN IT COMES TO COUNCIL.

SO, THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE.

COUNCILMAN BROCKHOUSE.

>> BROCKHOUSE: THANK YOU, MAYOR.

WE MET YESTERDAY ON THIS.

VERY APPRECIATIVE OF THE WORK.

YOU HAVE BEEN KEEPING ME INFORMED AND IN THE TEAM.

IT'S REALLY MADE A LOT OF PROGRESS.

I WANT TO THANK YOU FOR THE WORK.

AND MY POINT I JUST WANTED TO MAKE, KIND OF REITERATE SOMETHING I SAID YESTERDAY.

WHEN WE START TO -- AND IT'S A FINE LINE.

IT'S A DIFFICULT CONVERSATION TO HAVE.

BUT I THINK WE HAVE TO HAVE IT.

WHICH IS WHEN YOU START TALKING ABOUT PLACING YOUR VALUES INTO THE BUSINESS COMMUNITY, ARE YOU WALKING A VERY FINE LINE? BECAUSE VALUES ARE A TOUGH THING TO MEASURE.

THEY'RE A TOUGH THING TO HOLD SOMEONE ELSE ACCOUNTABLE FOR, ESPECIALLY WHEN IT'S AN OUTSIDE THIRD PARTY BUSINESS THAT IS BRINGING VALUE TO THE COMMUNITY.

ONE OF MY COLLEAGUES MENTIONED MARASHAN.

MAYBE MY COLLEAGUE DOESN'T THINK THAT'S A GOOD JOB BECAUSE OF THE PAY OR WHATEVER.

BUT JOBS, PERIOD, FILL SOME LEVEL OF EMPLOYEE READINESS ACROSS OUR COMMUNITY.

I DON'T DISPUTE THE FACT -- IN FACT, WE NEED TO GET IN THERE AND YOUR PLAN, WHAT I REALLY LIKE WAS THE UPSKILLING ALL THE WAY UP TO PROJECT QUEST.

[01:45:01]

THE ACCOUNTABILITY THAT THE MONEY WE'RE PUTTING IN ENDS UP GROWING A PERSON TO A HIGHER LEVEL PAID EMPLOYMENT.

THAT'S EXACTLY WHERE WE SHOULD BE.

BUT WE SHOULDN'T LOOK DOWN -- YOU HAVE TO BE VERY CAREFUL NOT TO LOOK DOWN ON THAT ENTRY-LEVEL WAGE JOB.

I LOVE MY SON.

HE'S A GREAT JOB, 20 YEARS OLD.

HE DOESN'T NEED TO BE MAKING $12.50 PERHAPS.

$15, $16, NO.

HE DOESN'T HAVE THE SKILL SET TO GET THERE BUT HE WILL BUILD THAT OVER TIME.

MY ONLY CAUTION IS THIS DRIVE FOR VALUES IN WHO WE ARE AND HOW WE PUSH ALSO SENDS A MESSAGE THAT IT'S VERY TO MEASURE UP TO WHAT THE CITY MAY OR MAY NOT.

THAT IS JUST AN UNREALISTIC CRISISTIC TO ME.

WE DON'T WANT TO SCARE PEOPLE AWAY, BECAUSE WE DON'T KNOW IF OUR VALUES CHANGE FROM ADMINISTRATION TO ADMINISTRATION, FROM COUNCIL DISTRICT TO COUNCIL DISTRICT.

IT SHOULDN'T WORK AS THAT AS A PRIMARY GOAL.

I THINK COUNCILMAN PELAEZ HIT THE NAIL ON THE HEAD WHEN HE SAID ARE WE GETTING OUR MONEY BACK FOR WHAT WE'RE INVESTING OR ARE WE LOSING.

SOMETIMES IN A LOT OF OPERATIONS AND FLOWS IT'S NOT ENOUGH TO SAY WE'RE NOT LOSING.

THAT'S NOT A GAME PLAN EITHER.

YOU KNOW, THERE ARE KEY POINTS THAT, YOU KNOW, COUNCILMAN COURAGE HAS MADE ABOUT, YOU KNOW, THEY'RE RECEIVING THEIR TIME PERIOD OF FIVE YEARS OF PAID INTERNSHIPS BUT THEY'RE GETTING TEN YEARS OF ABATEMENTS.

THESE ARE GOOD CONVERSATIONS TO HAVE.

AS WE DISCUSSED YESTERDAY, I WANT TO PUT A PLUG OUT THERE.

LET'S NOT GET TOO HOLIER THAN THOU WITH A JOB THAT COMES DOWN THE ROAD.

IT'S NOT TO FORCE EMPLOYERS TO LITERALLY PAY MORE MONEY TO CLOSE THAT GAP FROM A WORKER WHO NEEDS -- REMEMBER, THESE ARE A LOT OF TIMES PART-TIMERS, SEASONAL EMPLOYEES.

THERE ARE A LOT OF FOLKS THAT ARE FILING INTO THIS UNEMPLOYMENT MIX.

IT WAS MENTIONED 3.1 ACROSS THE CITY.

THAT'S A PHENOMENAL UNEMPLOYMENT RATE.

IT WOULD BE GOOD FOR US TO SEE WHAT IT IS DISTRICT BY DISTRICT, PERHAPS CENSUS TRACK OR PRECINCT.

BUT WE'RE DOING WELL.

AND I THINK THAT 3.1% IS A REFLECTION ON YOUR TEAM, IT'S A REFLECTION ON JENNA AND HER TEAM AND WHAT WE'RE BRINGING INTO THE ORGANIZATION AND THE CITY.

WHAT I LIKE TOO IS THAT YOU'RE GOING OUT THERE AND ASKING BUSINESS WHAT YOU THINK.

THAT'S THE OTHER PROBLEM WITH VALUES.

IT'S GOING OUT AND TELLING THE BUSINESS THIS IS THE VALUE WE'RE SENDING A MESSAGE THAT WE'RE LOOKING FOR THESE TYPES OF PEOPLE.

THE REST OF YOU NEED NOT APPLY.

THAT'S A SCARY CONVERSATION FROM A STANDPOINT OF WAGES AND ALL THOSE OTHER THINGS.

I WOULD ASK JUST TO KEEP THAT MIX IN THERE.

ALWAYS THINK ABOUT OPENING THE DOOR TO BUSINESS AND OPPORTUNITY.

THERE'S NO SUCH THING AS A BAD JOB, RIGHT? IT'S JUST MAYBE NOT WHERE ANY EMPLOYER OR PERSON WANTS TO BE, BUT PEOPLE HAVE TO START SOMEWHERE IN THE EMPLOYMENT OPPORTUNITY.

AND I THINK IT'S ON US TO EDUCATE AND PUT THE MONEY INTO THESE WORKFORCE TRAINING OPPORTUNITIES LIKE WE'RE DOING AND REALLY DRIVE THAT UP AS WE CAN.

PROJECT GUEST, FOR ALL THEIR GOOD WORK, IS ABOUT 2,000 PEOPLE, RIGHT? A YEAR, I THINK.

WE'RE NOT IMPACTING A LARGE AMOUNT OF FOLKS THERE.

SO WE NEED TO CONSIDER THOSE OPPORTUNITIES.

AND I LIKE WHAT YOU'RE DOING WITH THE UPSKILLING.

IT'S GREAT.

YOUR PRESENTATION WAS SOLID.

I WAS VERY THANKFUL FOR THE WORK YESTERDAY.

IT'S NOT EVERYWHERE I WOULD WANT TO BE BUT IT SPRINKLES IN A LITTLE BIT, FROM WHAT I HAVE HEARD FROM ALL THE MEMBERS, WHAT I THOUGHT WAS INTERESTING.

AND THE CCR I WROTE, THE LAST YEAR OVER THAT CREDIT HUMAN ISSUE, THIS IS WHERE THIS CAME FROM.

THESE THINGS AREN'T WORKING.

SPRINKLES A LITTLE BIT OF COUNCILMAN COURAGE, A LITTLE BIT OF EVERYTHING I THINK IS IN IT.

IT'S A WELL-ROUNDED GOOD STARTING POINT FOR A PILOT POINT.

I WANT TO THANK YOU AND THE REST OF THE ORGANIZATION FOR LISTENING AND MAKE SURE EVERYBODY'S GOT A PIECE OF THIS PUZZLE.

I LOOK FORWARD TO YOUR FOLLOW-UP ON THIS OVER THE NEXT FEW MONTHS AND MAKE SURE YOU'RE COMING BACK WITH REGULAR UPDATES TO THE COUNCIL TO SEE HOW THIS IS WORKING.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN BROCKHOUSE.

GREAT JOB, GUYS.

LOOK FORWARD TO SEEING THIS UNFOLD.

>> COURAGE: MAYOR, COULD I ASK ONE MORE THING?

>> MAYOR NIRENBERG: COUNCILMAN COURAGE.

>> COURAGE: THANK YOU.

I DID JUST KIND OF WANT TO REVIEW THAT ON PAGE 13 WE TALKED ABOUT THESE INCENTIVES AND PRIORITIES OFFERING OR SAYING THAT SOMEBODY NEEDED TO MEET TWO FOR 50% OR THREE FOR 100%.

I KNOW WE HAD TALKED ABOUT THIS BEFORE.

WHAT ARE THE TARGETED VISTA WE'RE GOING AFTER?

>> WE HAVE FOUR TARGETED INDUSTRIES.

HEALTHCARE AND BIOSCIENCES, I.T.

AND CYBER, ADVANCED MANUFACTURING LIKE AEROSPACE, AND NEW ENERGY.

THOSE ARE THE EMERGING INDUSTRIES THAT ARE CREATING THE MOST MIDDLE SKILLS JOBS THAT PAY THE HIGHER WAGES.

[01:50:01]

AT THE CURRENT TIME WE HAVE COMPETITIVE ADVANTAGE IN.

>> COURAGE: I BELIEVE I HAD MENTIONED THAT IF THEY MEET TWO PRIORITIES.

WELL, IF THEY'RE A TARGETED INDUSTRY, THEY'RE ALREADY MEETING ONE.

AND SO THEY MIGHT SAY, OKAY, WE'LL PICK NUMBER FIVE, PARTNERSHIP OPTIONS.

LET'S SEE, OKAY, WE'LL DO ANNUAL FLU SHOTS AND WE WANT TO GO AHEAD AND PUT IN AN IRRIGATION SYSTEM SO WE'LL LET SAWS DO THAT FOR US.

SO THOSE ARE OUR TWO, SO WE'RE GOING TO GET 50% ABATEMENT, SIMPLY BECAUSE WE'RE A TARGETED AUDIENCE AND WE DECIDE WE'RE GOING TO DO A COUPLE OF LITTLE THINGS.

OR MAYBE THEY SAID, OKAY, WE'LL DO THREE AND THE OTHER ONE IS WE'LL DO INTERNSHIPS.

WELL, ARE WE REALLY GETTING A GOOD VALUE RETURN FOR 100% ABATEMENT WHEN REALLY THEY'RE DOING VERY LITTLE IN RETURN? AND SO THAT'S WHY I HAD SUGGESTED THAT IF THEY'RE ALREADY A TARGETED INDUSTRY, YOU KNOW, THEY SHOULD BE STRIVING TO MEET THREE OF THOSE OTHER FOUR.

AND ITEM NO. 5 HAS MULTIPLE CHOICES.

SO THERE'S A LOT OF OPPORTUNITIES TO GET A LITTLE BIT MORE OUT OF A TARGET INDUSTRY THAN JUST SAYING, OKAY, WELL, WE'LL GO AHEAD AND DO INTERNSHIPS AND WE'LL DO A COUPLE OF OTHER LITTLE THINGS.

WE'LL GET 100% ABATEMENT FOR TEN YEARS.

YOU KNOW, THAT WAS SOMETHING THAT I HAD MENTIONED BEFORE AND IT KIND OF GOES ALONG, I THINK, WITH WHAT YOU WERE SAYING EARLY ON ABOUT, YOU KNOW, WHAT ARE WE ACTUALLY GETTING IN RETURN FROM THESE INDUSTRIES WHEN WE'RE GIVING SUCH A STRONG ABATEMENT.

>> SO WE DID CONSIDER THAT.

WE HAD A LONG DEBATE INTERNALLY WITH STAFF ABOUT THIS.

WE COULD JUST ELIMINATE THAT AND YOU FIX THAT PROBLEM.

>> COURAGE: TAKE TARGET INDUSTRY OUT AND IT WOULD FIX THE PROBLEM.

>> HAPPY TO MEET WITH Y'ALL INDIVIDUALLY ON THIS.

WHERE WE LANDED, WHERE I LANDED WAS OUR FOCUS FOR THE LAST TEN YEARS HAVE BEEN ON GROWING TARGETED INDUSTRY TO BUILD OUT THAT CLUSTER AND CONTINUE THE MOMENTUM.

BECAUSE THEY PAY HIGH WAGES.

THEY'RE COMPETITIVE.

THEY REPRESENT MIDDLE SKILLS JOBS.

REAL OPPORTUNITIES FOR THAT UPSKILLING.

AND IN ESSENCE THE IDEA OF MAKING IT EASIER FOR THOSE COMPANIES.

IN OTHER WORDS, COMPANIES WITHIN THE TARGETED INDUSTRIES, THE DOOR IS OPEN.

YOUR TICKET TO ENTRY IS A LITTLE EASIER.

DOES THAT MEAN THAT THEY'RE GOING TO DO LESS? I STRUGGLE WITH THAT.

AT THE END OF THE DAY WE DID RESEARCH ON THOSE TARGETED INDUSTRIES AND WHAT THEY'RE ACTUALLY DOING FOR US AND I'M VERY CONFIDENT THAT ALTHOUGH IT MIGHT LOOK EASIER, WHAT THEY'RE BRINGING TO THE TABLE IS A LOT MORE.

THESE ARE THE COMPANIES THAT HAVE VERY SIGNIFICANT HEALTH BENEFITS.

THAT HAVE VERY SIGNIFICANT PAID INTERNSHIPS.

THAT HAD VERY SIGNIFICANT CULTURES THAT ENCOURAGED DIFFERENT MORE INNOVATIVE TYPE OF WORKPLACES.

SO WE'RE MAKING A RECOMMENDATION.

WE'RE BALANCING SORT OF THE EASE OF DOING BUSINESS AND WHAT WE WANT TO GO AFTER VERSUS KIND OF AGREEING TO DO PRIORITIES TO GET ADDITIONAL BENEFIT.

COUNCILMAN, I DON'T WANT TO SAY WE DISMISSED THAT IDEA AT ALL.

WE HAD A HEALTHY DISCUSSION AROUND IT.

>> I WOULD ALSO LIKE TO ADD WHEN YOU CONSIDER THE ELIGIBILITY REQUIREMENTS AND THE AVERAGE PROJECT, THEY'RE ALSO BRINGING TO THE TABLE, ON AVERAGE, 400 JOBS AND $40 MILLION INVESTMENT.

WHICH WE'RE COMPETING FOR.

SO THAT'S WHAT WE'RE GETTING FOR THE TARGETED INDUSTRY PROJECT IN TERMS OF THE EXCHANGE.

WE'RE WINNING THAT NET NEW INVESTMENT.

THAT AFTER THE ABATEMENT IS OVER WILL CONTINUE TO PAY REVENUE.

WHEN WE'RE THINKING ABOUT WHAT WE'RE GIVING AND GETTING, IT'S HUNDREDS OF JOBS THAT WE'RE COMPETING FOR AND TENS OF MILLIONS OF DOLLARS.

THAT'S WHAT THEY'RE ALSO BRINGING TO THE TABLE.

>> COURAGE: [INAUDIBLE]

>> ABSOLUTELY.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE.

I WOULD JUST EMPHASIZE THAT THE LAST MAYBE TEN YEARS, BUT CERTAINLY IN THE LAST COUPLE OF YEARS SAN ANTONIO HAS PROVEN TO BE OPEN FOR BUSINESS.

AND THE ECONOMIC DEVELOPMENT AND MOMENTUM THAT'S BEEN GAINED IN THIS COMMUNITY IS, YOU KNOW, IRREFUTABLE.

NOT JUST WITH REGARD TO UNEMPLOYMENT RATE BUT ALSO GAINFUL EMPLOYMENT, WAGES INCREASING, THE LEVEL OF PROSPERITY ACROSS THE CITY, INCREASING THE CHALLENGES.

IT'S NOT BEING EQUITABLY SPREAD.

ERNST & YOUNG AND THE OAKEN PROJECT BOTH NOTED THEY CAME HERE BECAUSE OF WORKFORCE.

THE TALENT AND EDUCATION AND SKILLS THAT WE HAVE GENERATED WITHIN THE WORKFORCE, THE VAST MAJORITY OF JOBS, 95% OR MORE ARE COMING BECAUSE WE BUILT AND ARE BUILDING A QUALITY PLACE TO DO BUSINESS AND TO LIVE IN.

WHEN WE WANT TO REV THE ENGINE, TO FILL THE GAPS, TO CHANGE THE

[01:55:02]

WAY THE TRAJECTORY OF SOME OF THESE COMMUNITIES ARE EXPERIENCING THAT KIND OF PROSPERITY, THAT'S WHEN THE INCENTIVES COME IN AND THAT'S WHEN WE CAN MAKE A DIFFERENCE IN OUR CITY.

AND THAT'S WHY I THINK THE SHARPENING OF THE TOOLS IN THIS SENSE MAKES GOOD SENSE AND WE SHOULD CONTINUE TO DO THAT.

WE HAVE IDENTIFIED COMPASSION, EQUITY AS THINGS WE SHOULD STRIVE FOR AS A COMMUNITY.

I'M GLAD TO SEE IT'S BAKED INTO OUR ECONOMIC PRINCIPLES SO THAT WHEN WE WRITE A CHECK ON BEHALF OF THE TAXPAYERS' OF SAN ANTONIO WE'RE ACHIEVING COMMUNITY-DESIRED OUTCOMES.

GREAT JOB.

LOOK FORWARD TO SEEING THE

[Executive Session]

IMPACT OF THESE TWEAKS.

WE DO HAVE AN EXECUTIVE SESSION.

HOWEVER, WE'RE GOING TO TAKE A BREAK BEFORE WE GET THERE.

SO WE'RE GOING TO RECONVENE IN EXECUTIVE SESSION AT 4:25.

SO THE TIME IS NOW 4:10 P.M. ON THIS 28TH DAY OF NOVEMBER, 2018.

PURSUANT TO THE AUTHORITY GRANTED BY CHAPTER 551 IN THE TEXAS GOVERNMENT CODE, TEXAS OPEN MEETINGS ACT, THE CITY 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 ISSUES RELATED TO THE CHARTER AMENDMENTS PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.071, CONSULTATION WITH ATTORNEY.

WE WILL RECONVENE IN EXECUTIVE

>> MAYOR NIRENBERG: GOOD EVENING, LADIES AND GENTLEMEN.

WE'RE GOING TO BEGIN PUBLIC HEARINGS THIS EVENING, AND WE HAVE TWO SCHEDULED, FOLLOWED BY CITIZENS TO BE HEARD, AND I'LL ASK THE CLERK TO GO AHEAD AND READ ABOUT THE FIRST PUBLIC HEARING.

WE DID HAVE AN EARLIER MEETING IN EXECUTIVE SESSION, NO ACTION WAS TAKEN AT THAT TIME.

THAT EXECUTIVE SESSION WILL BE CONTINUED TOMORROW AFTER OUR COUNCIL A SESSION.

[2. First public hearing of the proposed voluntary annexation of a 15.99 acre property in North Central Bexar County as requested by the Herlinda Cantu Family LP, the property owner, located at 23211 US Highway 281 North, and generally located southwest of the intersection of Northwind Boulevard and US Highway 281. [Peter Zanoni, Deputy City Manager; Bridgett White, Director, Planning Department]]

THANK YOU.

>> YES, SIR, THE FIRST ITEM IS FIRST PUBLIC HEARING OF THE PROPOSED VOLUNTARY ANNEXATION OF A 15.99-ACRE PROPERTY IN NORTH CENTRAL BEXAR COUNTY AS REQUESTED BY THE HERLINDA CANTU FAMILY, LP, THE PROPERTY OWNER, LOCATED AT 23211 U.S.

HIGHWAY 281 AND GENERALLY LOCATED SOUTHWEST OF THE INTERSECTION OF NORTHWIND BOULEVARD AND U.S. HIGHWAY 281.

>> AT THIS TIME IN CONSULTING THE SIGN-UP SHEET TO SPEAK, WE HAVE NO ONE WHO SIGNED UP TO SPEAK AT THIS PUBLIC HEARING.

HEARING NONE, AT THIS TIME THEN I'LL GO AHEAD AND CALL THIS PUBLIC HEARING CLOSED.

WE NOW WILL GO AHEAD AND GO TO THE SECOND PUBLIC HEARING, AND THE CLERK WILL READ THE HEARING.

[3. First public hearing of the proposed voluntary annexation of a 90.73 acre property in Southwest Bexar County as requested by the property owners Hand-Up Homes, LLC. generally located in County Block 4298, adjacent to Watson Road, contiguous to the City of San Antonio limits and located within the San Antonio extraterritorial jurisdiction. [Peter Zanoni, Deputy City Manager; Bridgett White, Director, Planning Department]]

>> YES, SIR.

ITEM NO. 3 IS THE FIRST PUBLIC HEARING OF THE PROPOSED VOLUNTARY ANNEXATION OF A 90.73-ACRE PROPERTY IN SOUTHWEST BEXAR COUNTY, AS REQUESTED BY THE PROPERTY OWNERS, HAND-UP HOMES LLC, GENERALLY LOCATED IN COUNTY BLOCK 4298, ADJACENT TO WATSON ROAD, CONTIGUOUS TO THE CITY OF SAN ANTONIO LIMITS AND LOCATED WITHIN THE SAN ANTONIO EXTRATERRITORIAL JURISDICTION.

>> THANK YOU.

WE HAVE SEVERAL PEOPLE SIGNED UP TO SPEAK AT THIS PUBLIC HEARING.

I'LL GO AHEAD AND CALL THE NAMES.

YOU WILL HAVE THREE MINUTES.

THE FIRST PERSON SIGNED UP IS ART MENBLAND, FOLLOWED BY MARK PEREZ.

>> ANNEXATION.

>> THIS IS THE PUBLIC HEARING ON ANNEXATION AT THIS TIME.

>> WELL, ON THE ANNEXATION, WE HAVE A CITY THAT HAS SUCH A WONDERFUL FUTURE, AND IT'S EMBARRASSING THAT WE ARE BEHIND TIME.

NOW, I WAS READING MR. PEREZ'S FOLDER, AND ANNEXATION -- IF YOU LOOKED AT HIS FOLDER YOU SEE ALL THE VIOLATIONS, EVERYBODY WOULD BE FIRED.

DOWN HERE CODE COMPLIANCE, CRAIG MARTIN AND EVERYBODY ELSE WOULD BE FIRED.

WE'D HAVE TO START ALL OVER, AND IT'S EMBARRASSING THAT THE CITY IS THIS FAR BEHIND WITH THE MARIJUANA LAWS.

ANNEXATION, I DON'T -- YOU KNOW, ANNEXATION IS -- IS PROBABLY CORRUPT LOOKING AT HIS FOLDER.

SO I DON'T KNOW WHERE YOU WOULD HAVE TO -- HAVE TO GO,

[02:00:04]

BUT WE NEED TO GO INTO SOME BETTER LAWS, AND WE SHOULDN'T BE THIS FAR BEHIND WITH AHTLIS RUNNING THE CITY.

AND IT'S EMBARRASSING TO THE CITY, SPURS, WE GOT A POTENTIAL FOR A GREATER CITY, AND WE WAY BEHIND TIME ON ALL OF IT.

IT'S -- ANNEXATION IS PROBABLY CORRUPT TOO.

JUST READING HIS FILES THAT HE HAS THERE, AND A WHOLE LOT OF PEOPLE WOULD BE LOCKED UP, WE'D HAVE TO START ALL OVER IN HERE AGAIN, CITY MANAGERS AND EVERYBODY.

SO ANNEXATION IS -- IS -- IS MORE -- AND PEOPLE NEED TO SPEAK MORE ABOUT THE ANNEXATION AND FIND OUT MORE ABOUT IT.

IS THIS CITIZENS TO BE HEARD OR WHAT? THIS IS ANNEXATION?

>> THIS IS THE PUBLIC HEARING, MR. BLAND.

THANK YOU MR. BLAND.

THE SECOND PERSON IN OUR PUBLIC HEARING REGARDING ANNEXATION OF SOUTHWEST BEXAR COUNTY IS MARK PEREZ, TO BE FOLLOWED BY NATALIE GRIFFITH.

>> GOOD EVENING, CITY COUNCIL.

MY NAME IS MARK PEREZ, AND WHEN IT COMES TO ANNEXATION, LIKE MR. BLAND SAID, WE'RE WAY BEHIND HERE IN THE CITY ON CITY SERVICES.

AS YOU KNOW, WHEN IT COMES TO ANNEXATION, BACK THEN IT WAS ONE USER, I THINK NOW IT'S, WHAT, SIX MONTHS.

BUT IF YOU LOOK, AND I'VE BEEN BACK AND FORTH WITH MANY OF THE PROPERTIES HERE IN THE CITY, AND THESE PEOPLE NEVER REGISTERED, NEVER REGISTERED.

20 YEARS.

FOR EXAMPLE, LIKE THAT REFINERY ON SOUTH PRESA, 20 YEARS FOR THEM TO COME, AND NOW THEY'RE FINALLY TRYING TO GET THEIR PERMITS NOW.

BUT GRANDFATHER, THEY OWE THE CITY A LOT OF MONEY! A LOT OF MONEY, AND THEY'VE BEEN DOING BUSINESS.

BUT I'LL TELL YOU, Y'ALL HAVE BEEN RESISTING FROM THESE FOLKS PAYING.

CHIEF HOOD NEEDS TO GO.

JUST FOR EXAMPLE, WHEN THAT REFINERY WAS ANNEXED BY THE CITY, THEY DIDN'T HAVE NO HAZMAT PERMIT, AND IT CONTINUED, EVEN AFTER THEY HIRED HIM.

WHY DO YOU THINK MICHAEL BERNARD LEFT? WE HAVE A DYSFUNCTIONAL CITY ATTORNEY'S OFFICE.

DO YOU THINK HE SHOULD BE OUT THERE COLLECTING THE MONEY? NO.

BUT ANYWAY, OUR POLICE FORCE HAS BEEN VERY BAD ON ANNEXATION.

I WAS TALKING TO MR. CISNEROS OR MR. SERATOS AND I FIND OUT THERE'S A CRIMES OFFICER IN THE CITY.

MARCUS BOOTH.

MARCUS BOOTH.

AND I'M GOING TO FIND OUT WHY ARE THESE OFFICERS NOT CONTACTING THAT GENTLEMAN, MR. SERATOS HANGS UP THE PHONE ON ME.

BUT ANYWAY, MARCUS BOOTH, FINANCIAL CRIMES, YOU CONTINUE TO ASSIST ALL THESE INDIVIDUALS, AND THAT STUFF ON RAUL PRADO IS STILL CONTINUING.

COUNCIL AFTER COUNCIL AFTER COUNCIL.

YES, EVERY CITY COUNCIL MEMBERS THAT HAVE BEEN SITTING ON THERE HAVE BEEN TAKING ZONING KICKBACKS, AND WE CAN PROVE IT.

MR. BROCKHOUSE, YOU CONTINUE.

HAVE YOU GOT -- YOU'VE BEEN PLAN AMENDMENTS ON THE REFINERY? HUH? THEY'VE BEEN GETTING PERMIT ACTIVITY OUT THERE THE STORM WATER AND THEY JUST HAD THAT SPILL LAST WEEK.

HUH? ANNEXATION AND YOU ALL WANT THE FIRE DEPARTMENT TO DO MORE? BY THE WAY, THEY GOT THEIR OWN FIRE DEPARTMENT OUT THERE.

HOW DID THEY DO THAT? YES, BUT ANYWAY, YOU KNOW, MR. PELAEZ, YOU THINK YOU'RE VERY CONCERNED, YOU'VE BEEN ON THE WATER COMMITTEE FOR MANY YEARS ALREADY, SIR.

HOW MUCH MONEY HAS THE RIVER AUTHORITY MADE ON THAT REFINERY, ON FINES? AND THEY AIN'T HAD NO CITY PERMITS, AND YOU ASK EACH AND EVERY ONE OF THESE PEOPLE THAT DO ANNEXATION, HOW DID THE REFINERY GET THROUGH THE LOOPS, AND WHAT DO YOU THINK THEY'RE GOING TO DO? TURN THEIR BACK ON THEIR EMPLOYER.

THESE PEOPLE ARE FAKES WHEN IT COMES TO ANNEXATION.

WHO ARE THEY GOING TO CHARGE? YOU TALKING ABOUT CONTAMINATING PROPERTIES OUT THERE.

DO YOU THINK THEY'RE GOING TO GO AFTER THEM? NO, MS. BRIDGETT, SHE HUNG UP THE PHONE ON ME.

CITY CHARTER SAYS THE DIRECTIONS OF THESE PEOPLE AND WHAT DO YOU THINK THEY'RE DOING? TURNING THEIR BACKS.

>> MAYOR NIRENBERG: THANK YOU, MR. PEREZ, NATALIE GRIFFITH, FOLLOWED BY MICHAEL TAYLOR.

>> HI, GOOD EVENING, I AM THE PRESIDENT OF HABITAT FOR HUMANITY OF SAN ANTONIO, AND I'M HERE TO SPEAK IN SUPPORT OF AGENDA ITEM NO. 3, THE VOLUNTEERING ANNEX -- VOLUNTARY ANNEXATION AND ZONING OF THE WATSON ROAD PROPERTY.

HABITAT IS LEADING THE DEVELOPMENT PLANNING FOR THIS TRACT, AND AT THE TIME IT WAS ORIGINALLY ACQUIRED BY HAND-UP HOMES IN EARLY 2018 AND FROM HABITAT'S

[02:05:02]

INVOLVEMENT FROM BEFORE THEN TO THIS OCTOBER, WE AND EVERYONE INVOLVED IN THE ACQUISITION AND DEVELOPMENT PLANNING FOR THIS PROPERTY BELIEVED IT WAS ALREADY IN THE CITY LIMITS, AS WE RELIED ON VARIOUS CITY RECORDS THAT INDICATED THAT.

THE CITY NOTIFIED US IN OCTOBER THAT THE PROPERTY IS ACTUALLY NOT IN THE CITY LIMITS, AND SO THIS ANNEXATION AND THE UPCOMING ZONING CASE WILL FIX THAT, SO WE CAN GET BACK ON TRACK WITH OUR DEVELOPMENT PLANNING.

I WANT TO GIVE A SPECIAL SHOUT OUT AND THANK YOU TO THE STAFF OF THE DEPARTMENT OF PLANNING AND COMMUNITY DEVELOPMENT AND DEVELOPMENT SERVICES FOR THEIR DILIGENT WORK IN GETTING THIS RESOLVED SO QUICKLY.

I ALSO WANT TO LET EVERYONE INVOLVED KNOW THAT THERE IS TREMENDOUS PUBLIC SUPPORT FOR THIS CASE AND OUR DEVELOPMENT -- IN OUR DEVELOPMENT PLANNING, SO WE ASK FOLKS TO LET YOU KNOW THAT THEY SUPPORT THIS GREAT INITIATIVE.

I HOPE YOU HAVE ALREADY HAD A CHANCE TO REVIEW THE INFORMATION THAT WAS DELIVERED TO YOU YESTERDAY AND THE UPDATE THAT WAS EMAILED TO YOU ALL TODAY.

I AM VERY HUMBLED AND HONORED TO ANNOUNCE FOR THE RECORD THAT WE HAVE RECEIVED OVER 425 LETTERS OF SUPPORT FROM BUSINESSES, CHURCHES AND INDIVIDUALS.

THE MAYOR AND COUNCILMAN SALDAñA HAVE RECEIVED A COPY OF EVERY LETTER AND EACH OF YOU SHOULD HAVE RECEIVED A SAMPLING FROM YOUR OWN DISTRICT.

I AM HERE TONIGHT TO FORMALLY PRESENT ALL 425 LETTERS RECEIVED TO THE CITY SO THEY MAY BE PROPERLY ENTERED INTO THE ANNEXATION AND ZONING CASE RECORDS.

WE CAN'T DO OUR IMPORTANT WORK WITHOUT THE HELP AND SUPPORT OF THE CITY, SO AS A FOLLOW-UP TO THANKSGIVING, I GIVE THANKS FOR EACH ONE OF YOU AND OUR CITY COUNCIL FOR YOUR PAST, CURRENT AND FUTURE SUPPORT OF HABITAT AND THE IMPORTANT WORK THAT WE DO FOR THE GREATER -- THAT WE DO WITH THE GREATER COMMUNITY.

SO THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, MS. G GRIFFITH.

MICHAEL TAYLOR?

>> GOOD EVENING, MAYOR AND COUNCIL.

MICHAEL TAYLOR, VICE PRESIDENT, HABITAT FOR HUMANITY OF SAN ANTONIO.

I'M ALSO HERE TO SPEAK IN FAVOR OF THIS ITEM, AND I REALLY JUST WANTED TO SHARE WITH YOU SOME OF THE CRITERIA THAT WE LOOK AT WHEN SELECTING A PROPERTY, JUST TO -- JUST TO EMPHASIZE HOW IMPORTANT, VITALLY IMPORTANT IT IS THAT WE BE ABLE TO CONTINUE WITH OUR DEVELOPMENT AT THIS PROPERTY.

SO AS YOU ALL ARE PROBABLY WELL AWARE THERE'S ABSOLUTELY NO MARGIN IN AFFORDABLE HOUSING FOR A NONPROFIT BUILDER SO WE HAVE TO BE VERY CAREFUL TO SELECT A PROPERTY WITH LOW DEVELOPMENT COSTS, LOW ACQUISITION COSTS, A PROPERTY WITH UTILITIES ON-SITE, APPROPRIATE TOPOGRAPHY, AND THIS IS A PROPERTY THAT MET THOSE CRITERIA.

AND AT THE TIME WE ACQUIRED IT WE BELIEVED IT WAS IN THE CITY.

SO IN ADDITION TO THOSE KIND OF LAND-SPECIFIC ITEMS, WE ALSO LOOK FOR AN AREA WHERE OUR HOME BUYERS WILL HAVE THE GREATEST ACCESS TO OPPORTUNITY.

SO WE LOOK FOR A SITE THAT HAS PROXIMITY TO EMPLOYERS, QUALITY SCHOOLS, LOW CRIME RATE, AND PROXIMITY TO SERVICES AND OTHER AMENITIES, AND AGAIN, THIS SITE IS JUST GREAT FOR THAT.

IN THE CASE OF WATSON ROAD, OUR HOMEOWNERS WILL HAVE ACCESS TO MAJOR EMPLOYERS WITHIN A TEN-MINUTE DRIVE, AND WE'RE TALKING ABOUT SOME BIG-TIME EMPLOYERS, SCHLUMBERGER, FASM SA, AIR MARK, MARY JOHN, NORTH PARK TOYOTA AND THEN OF COURSE TOYOTA MANUFACTURING WHICH IS A SEVEN MINUTE DRIVE FROM OUR SITE, TEXAS A&M SAN ANTONIO, PALO ALTO COLLEGE, LACKLAND AIR FORCE BASE, EVEN NOT TOO FAR TO BROOKS CITY-BASE AND PORT SA, SO A LOT OF GOOD EMPLOYERS.

WE'RE ALSO LESS THAN A MILE FROM A BRAND-NEW SOUTHWEST ISD CAMPUS, THE NEW LEGACY HIGH SCHOOL, RESIN THIS CASE MIDDLE SCHOOL WHICH WILL PROVIDE QUALITY EDUCATION FOR OUR FUTURE HOME BUYERS.

ABSOLUTELY NO CRIME IN THE AREA WHICH IS A GREAT THING, AND WE'RE ALSO CLOSE TO SOME AMENITIES THAT ARE COMING IN VERY QUICKLY.

WE'RE RIGHT NEXT TO THE PRESERVE AT THE MEDINA RIVER, WHICH IS A BIG 530-ACRE MASTER PLAN COMMUNITY THAT'S GOING IN DOWN -- DOWN RIGHT NEXT TO US, AND THAT'S GOING TO INCLUDE SOME BIG BOX RETAIL AND SOME OTHER AMENITIES THAT OUR FUTURE HOMEOWNERS WILL BE ABLE TO TAKE ADVANTAGE OF.

WE'RE CLOSE TO AN EXISTING BUS LINE, WHICH IS GOING TO BE UPGRADED, AS PART OF VIA'S VISION 2040 PLAN.

OF COURSE OUR DEVELOPMENT IS CONSISTENT WITH CITY PLANS.

WE LOOK FOR THAT AS WELL.

SA TOMORROW IDENTIFIED THIS AS AN AREA THAT HAS THE CAPACITY FOR A LOT MORE RESIDENTIAL AND HOUSING UNITS, AND SO, YOU KNOW, THIS IS THE PART OF TOWN THAT HAS THAT CAPACITY, AND WHEN YOU COMBINE THAT WITH ALL OF THE ASSETS, YOU KNOW, WE BELIEVE THAT THIS IS OUR FUTURE.

WE ARE VERY FORTUNATE TO GET

[02:10:02]

THIS PROPERTY AT AN AFFORDABLE PRICE.

THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, MR. TAYLOR.

THE PUBLIC HEARING ON THE ANNEXATION IN SOUTHWEST BEXAR COUNTY IS NOW CLOSED ALL CITIZENS HAVE APPROACHED

[6:00 PM (may be heard after this time) - Citizens to be Heard]

THE PODIUM TO SPEAK.

AT THIS TIME IT'S 6:19 P.M.

WE'RE GOING TO OPEN OUR REGULARLY SCHEDULED CITIZENS TO BE HEARD SESSION.

WE'LL BEGIN WITH ARTMEN BLAND, FOLLOWED BY MARK PEREZ.

* This transcript was compiled from uncorrected Closed Captioning.