[4. Ordinance amending Chapter 16 and Chapter 35 of the San Antonio City Code relating to Short Term Rentals, establishing fees, and providing for publication. [Roderick Sanchez, Assistant City Manager; Michael Shannon, Director, Development Services]]

PLEASE VOTE.

MOTION CARRIES.

ITEM NO. 4.

>> ITEM NO. IS AN ORDINANCE AMENDING CHAPTER 16 AND CHAPTER 35 OF THE SAN ANTONIO CITY CODE RELATED TO SHORT-TERM RENTALS, ESTABLISHING FEES, AND PROVIDING FOR PUBLICATION.

>> GOOD MORNING, MAYOR AND COUNCIL.

SO TODAY WE'RE GOING TO TALK ONCE AGAIN ABOUT SHORT-TERM RENTALS WITH A PROPOSED ORDINANCE.

I'LL GO THROUGH THE PROCESS AGAIN WITH HOW WE GOT HERE.

AND I HAVE A PRESENTATION.

THERE WE GO.

SO I THINK AS WE ALL KNOW, WE HAVE BEEN TALKING ABOUT THIS FOR QUITE SOMETIME NOW, BUT FOR THE PAST YEAR AND A HALF CITY STAFF AND DEVELOPMENT SERVICES, OTHER DEPARTMENTS HAVE BEEN WORKING TO UNDERSTAND SHORT-TERM RENTALS IN SAN ANTONIO.

I THINK WE ALL UNDERSTAND THAT THE SHARING ECONOMY IS GROWING EXPONENTIALLY, WHETHER IT'S THE UBER/LYFT, WHICH WE HAVE ALREADY TACKLED AS A COMMUNITY, BUT THE HOME AWAY, AIRBNB, VRBO SITUATION.

WE HAVE BEEN LOOKING AT THAT EVER SINCE THE CCR THAT CAME OUT IN FEBRUARY 2017, FORMER CITY COUNCILMAN MIKE GALLAGHER ASKED THE CITY TO LOOK AT SHORT-TERM RENTALS AND LOOK AT FIVE DISTINCT THINGS.

WE HAVE BEEN WORKING WITH THE TASK FORCE, WE'LL TALK ABOUT THAT.

WE WANTED TO UNDERSTAND THE IMPACT ON PROPERTY VALUES, SAFETY.

WE WANTED TO REVIEW OUR CURRENT CODES AND ORDINANCES.

UNDERSTANDING WHAT THE HOTEL OCCUPANCY TAX, HOW THAT INTERACTS WITH SHORT-TERM RENTALS.

SHOULD WE DEVELOP SOME OPTIONS FOR REGISTERING AND PERMITTING AND JUST OVERSEEING PUBLIC SAFETY CONSIDERATIONS.

SO WHAT WE DID FOR THE FIRST PART OF THE PROCESS WAS TO REALLY DO A LOT OF RESEARCH.

WHAT'S GOING ON.

AS YOU ALL KNOW, THIS IS NOT JUST A SAN ANTONIO THING OR A TEXAS THING.

THIS IS NATIONALLY AND INTERNATIONALLY THE HOME SHARING ECONOMY IS REALLY EXPLODING.

WE LOOKED AT A LOT OF STUDIES THAT ARE PUBLISHED OUT THERE.

CORNELL, WILLIAMS, MIT HAS SOME PUBLISHED DATA.

WHAT THEY CONCLUDED -- NONE OF THAT WAS REALLY FOR SAN ANTONIO, BUT JUST GENERALLY THEY'VE CONCLUDED THAT SHORT-TERM RENTALS, THEY DON'T DECREASE PROPERTY VALUES.

THEY ACTUALLY MAINTAIN OR SLIGHTLY INCREASE PROPERTY VALUES IN AN AREA.

AND THAT WAS DEBATED THROUGHOUT THE PROCESS.

WE LOOKED AT SOME SAFETY STATISTICS IN SAN ANTONIO.

WE'VE TALKED ABOUT THIS I THINK SEVERAL TIMES.

RIGHT NOW WE KNOW OF ABOUT 400 SHORT-TERM RENTALS THAT ARE ALREADY REGISTERED WITH OUR FINANCE DEPARTMENT PAYING THE HOT TAX.

THAT'S THE ONLY THING THEY NEED TO DO RIGHT NOW.

BUT WE LOOKED AT THOSE 400 UNITS.

THERE'S NO MEASURABLE DIFFERENCE IN SAFETY, WHETHER IT BE SAPD OR CODE DATA THAT WOULD SUGGEST THAT THERE'S ANY SIGNIFICANCE.

BUT, AGAIN, THAT'S A SMALL SAMPLING OF DATA.

BUT THAT WOULD BE SOMETHING WE'LL CONTINUE TO MONITOR.

WE ALSO LOOKED AT SEVERAL OTHER CITIES AND STATES AND, YOU KNOW, WHAT ARE THEY DOING TO REGULATE.

THERE ARE A LOT OF CITIES OUT THERE THAT HAVE PROPOSED -- THAT HAVE ALREADY ADOPTED SHORT-TERM RENTAL REGULATIONS, BUT THE KEY THERE IS THERE IS NO OFF THE SHELF BEST PRACTICE THAT WE COULD HAVE JUST COPIED.

THEY VARY WIDELY IN TERMS OF WHAT THEY'RE DOING.

AND THEY'RE DEVELOPED LOCALLY.

THAT'S THE GOOD THING IS THEY'RE DEVELOPING THINGS THAT ARE RIGHT FOR THEIR COMMUNITY.

AND THAT'S WHAT WE'VE DONE.

SO AS YOU KNOW, AND I TALKED ABOUT THIS A FEW WEEKS BACK AT OUR B SESSION.

WE WORKED FOR OVER A YEAR WITH A TASK FORCE.

WE GATHERED A BUNCH OF PEOPLE TOGETHER.

A LOT OF NEIGHBORHOODS THAT WERE CONCERNED THAT MAYBE THESE WERE HURTING THE NEIGHBORHOODS AND THEY NEEDED SOME PROTECTION AGAINST, ESPECIALLY WHAT WE'RE GOING TO CALL TYPE TWO SHORT-TERM RENTALS.

WE HAVE A LOT OF OPERATORS WHO WERE DOING THIS IN A ROOM, AS WELL AS AIRBNB, SOME REAL ESTATE COMMUNITY TO HASH THIS OUT.

IT TOOK A LOT OF TIME AND MEETINGS TO FIGURE OUT WHAT WE COULD AND SHOULD DO.

SO OF THE OPTIONS TO DO THIS.

BUT WE DID GO THROUGH BOARDS AND COMMISSIONS.

WE DID GO THROUGH THE COMMUNITY HEALTH AND EQUITY COMMUNITY EARLIER THIS YEAR.

AND IF YOU REMEMBER IN APRIL, WE PRESENTED WHAT WE THOUGHT WAS A BALANCED ORDINANCE IN APRIL TO THE B SESSION.

BUT WHAT WE LEARNED FROM THAT IN A LOT OF THE COMMENTS BACK FROM YOU ALL WAS, HEY, GO BACK AND KEEP WORKING ON IT BECAUSE THERE ARE A LOT OF ISSUES THAT STILL NEEDED TO BE ADDRESSED.

SO WE DID THAT OVER THE SUMMER.

[00:50:01]

WE WENT BACK TO GOVERNANCE COMMITTEE, HELD ADDITIONAL MEETINGS WITH TASK FORCE, GENERAL PUBLIC, AND WENT BACK TO B SESSION EARLIER LAST MONTH, OCTOBER.

AND WITH THAT, WE NOW HAVE A PROPOSED BALANCED ORDINANCE THAT IS GOING TO LOOK LIKE THIS.

SO I'LL JUST TALK ABOUT SOME OF THE GENERAL PROVISIONS.

SHORT-TERM RENTALS WOULD HAVE TO REGISTER AND PERMIT THROUGH DEVELOPMENT SERVICES.

AND THERE ARE TWO TYPES OF SHORT-TERM RENTALS, AS WE ALL KNOW.

TYPE ONE AND TYPE TWO.

TYPE ONE ARE OWNER-OCCUPIED.

THE OWNER LIVES ON THE PROPERTY AND RENTS OUT A ROOM OR A GRANNY FLAT OR ANOTHER DWELLING UNIT ON THEIR PROPERTY.

THOSE WOULD BE ALLOWED BY RIGHT AND RESIDENTIAL AND COMMERCIAL.

TYPE TWO, WHICH ARE THE NON-OWNER-OCCUPIED, WHICH A LOT OF THE CONCERNS WERE RAISED BY THE TASK FORCE MEMBERS THAT BROUGHT THAT UP.

THAT WAS WHERE MOST OF THE ISSUES AND DEBATE WAS HAPPENING.

SO OUR PROPOSED ORDINANCE SAYS THAT THEY ARE ALLOWED BY RIGHT UP TO SOME DENSITY LIMITS.

MEANING AT A CERTAIN POINT INSIDE A NEIGHBORHOOD OR AN APARTMENT COMPLEX, MAYBE THERE'S TOO MANY AND THAT WOULD PUT A LOT OF PRESSURE ON THE NEIGHBORHOOD.

SO WE'RE GOING TO SET A DENSITY LIMIT OF 12.5% OR ONE EIGHTH.

AND THEN AFTER THAT YOU CAN STILL GET ADDITIONAL UNITS IF YOU GO THROUGH THE BOA PROCESS, BOARD OF ADJUSTMENT PROCESS, TO GET A SPECIAL EXCEPTION.

THAT WAS SOMETHING WE DISCUSSED OVER THE LAST SEVERAL MONTHS.

SO JUST TO TALK A LITTLE BIT MORE ABOUT THE DENSITY AND SPECIAL EXCEPTIONS.

WE'LL GO TO TYPE TWO.

SO ALLOWED BY RIGHT IN MOST DISTRICTS.

THE DENSITY LIMITATIONS ARE, IF I'M IN A NEIGHBORHOOD DISTRICT, ONE-EIGHTH OF THE BLOCK SPACE ARE ALLOWED TO HAVE TWOS.

AFTER THAT YOU WOULD EITHER HAVE TO CHOOSE ANOTHER NEIGHBORHOOD OR BLOCK OR YOU WOULD GO TO THE BOARD OF ADJUSTMENT AND YOU WOULD PLEAD YOUR CASE SAYING I AM GOOD FOR THE NEIGHBORHOOD.

I WILL NOT IMPACT THE OVERALL CHARACTER, OR WHATEVER THAT IS.

AND YOU WOULD HAVE TO GET A SPECIAL EXCEPTION.

AND THE MULTI-FAMILY CONCEPT CAME UP LATE IN THE GAME AROUND FEBRUARY, APRIL.

THERE WAS SOME DISCUSSION AT THE B SESSION IN APRIL.

HOW ARE WE GOING TO HANDLE SHORT-TERM RENTALS COMING INTO APARTMENT OR CONDO BUILDINGS.

WE WENT BACK TO THE TABLE AND WE SAID, HEY, THE CONCERN IS THAT MAYBE SHORT-TERM RENTALS ARE TAKING NOT JUST HOUSING STOCK WITHIN THE NEIGHBORHOOD, WHICH WAS THE KEY PRIORITY, BUT APARTMENTS AS WELL.

THOSE ARE LIVING UNITS.

SO WE ESTABLISHED OR WE'RE PROPOSING THIS DENSITY LIMIT.

AND THEN AFTER THAT THEY WOULD HAVE TO SEEK A BOA EXCEPTION.

THE KEY THERE WOULD BE WE'RE PROPOSING THAT MULTI-FAMILY BUILDING IS, NO MATTER WHAT THE ZONING DISTRICT IS, BECAUSE WE KNOW APARTMENT BUILDINGS AND CONDO BUILDINGS CAN BE IN A MULTITUDE OF ZONING DISTRICTS.

THE BED AND BREAKFASTS ARE ALSO INCLUDED.

WE ALSO HAD TO WORK ON SEVERAL MULTIUNIT CLARIFICATIONS.

WHAT IF I HAVE A GRANNY FLAT, WHAT IF I OWN A TRIPLEX, THOSE TYPES OF THINGS.

WE ADDED SOME ADDITIONAL CLARIFICATION.

EACH INDIVIDUAL DWELLING UNIT DOES REQUIRE A PERMIT.

IF YOU HAVE AN ADDITIONAL ACCESSORY DWELLING UNIT ON YOUR PROPERTY, THAT'S A TYPE ONE.

ANYTHING ELSE WOULD BE A TYPE TWO, MULTI-FAMILY UNITS UNDER COMMON OWNERSHIP.

AGAIN, WE DEFINED THE TYPE ONE FOR THE FIRST UNITS AND AFTER THAT WOULD BE THE TYPE TWO.

THERE'S A LOT OF SCENARIOS WE THINK WE WOULD RUN INTO AND WE HAD TO CLARIFY THAT IN THE ORDINANCE.

OTHER KEY PROVISIONS THAT WE ADDED TO THE ORDINANCE.

ORIGINALLY WE WERE THINKING OF DOING CITY INSPECTIONS FOR EVERY SINGLE ONE UP FRONT.

THERE WAS SOME CONCERN THAT IT WASN'T NEEDED OR IT WOULD BE TOO ONEROUS ON THE OPERATOR.

WE'RE GOING TO ALLOW A SELF-CERTIFICATION.

WE WILL REACT TO ANY COMPLAINTS TO COME IN WITH OUR BUILDING INSPECTORS OR CODE OFFICERS.

WE ALSO VERIFY, THIS IS DONE IN SOME OTHER CITIES AND IT'S WORKING WELL THERE.

IT HELPS US KEEP THE COSTS DOWN AS WELL AS WORK WITH THE OPERATOR ON SOME OF THESE KEY EASY SAFETY ISSUES.

WE REDUCED FEES FROM THE ORIGINAL.

THE ORIGINAL FEE WAS GOING TO BE $200 ORIGINAL REGISTRATION AND THEN $100 RENEWAL EVERY THREE YEARS.

BASED ON SOME OF THE FEEDBACK THAT WE GOT AT THE ORIGINAL B SESSION IN APRIL, WE WORKED TO REDUCE THAT TO $100 INITIAL AND THEN THE RENEWAL.

THAT, AGAIN, WITHOUT AS MANY INSPECTORS AND STUFF LIKE THAT WITH THE SELF-CERTIFICATION, THAT WAS DOABLE.

WE ALSO ADDED SOME LANGUAGE ON CITY HOUSING INCENTIVES.

THERE WAS A CONCERN THAT WE ADDRESSED AND TACKLED THAT IF WE'RE GIVING CITY HOUSING INCENTIVES THROUGH SOME OF OUR PROGRAMS, WHETHER IT BE THE CCHIP OR ICRIP, SHOULD THOSE BE ABLE TO BE TURNED INTO A SHORT-TERM RENTAL? AND THE PROPOSAL IS NO.

WE HAVE DEFINED CITY HOUSING INCENTIVES AND PROPERTIES WITH CITY HOUSING INCENTIVES WILL NOT

[00:55:01]

BE ELIGIBLE FOR A TYPE TWO STR PERMIT.

OF COURSE EVENTS AND OTHER USES, THE QUOTE UNQUOTE PARTY HOUSES ARE NOT ALLOWED TO BE STRS.

SO SOME OTHER KEY ITEMS. AGAIN, REGISTRATION WITH DEVELOPMENT SERVICES.

WE WILL COORDINATE WITH THE FINANCE DEPARTMENT ON THE HOT TAX PAYMENT TO ENSURE THAT THEY ARE SET UP OR PAYING THEIR HOT TAX.

HOT PAYMENT TO MAKE SURE THEY GET THEIR PERMIT.

YOU'LL HAVE TO HAVE YOUR LIST OF EMERGENCY CONTACTS, 24-HOUR CONTACT INFORMATION IF THERE'S ANY ISSUES WITH YOUR SHORT-TERM RENTAL.

THEY WILL ISSUE A FLOOR PLAN OR SITE PLAN SKETCH SO WE CAN REVIEW THAT, MAKE SURE THERE'S PROPER EXITING AND STUFF.

ONE OF THE THINGS WE DISCUSSED WAS EXISTING LEGAL TYPE TWO SHORT-TERM RENTALS.

RIGHT NOW WE HAVE NO SHORT-TERM RENTAL REGISTRATION SO WE HAVE MANY OF THESE, 400 OR SO OF THESE, THROUGHOUT OUR CITY THAT ARE EXISTING AND LEGAL TODAY.

SO WHEN WE PASSED THIS ORDINANCE THEY WILL BE EXISTING AND LEGAL.

THEY WILL BE GRANDFATHERED FROM THE DENSITY CLAUSE.

THAT'S THE ZONING PIECE OF THE DENSITY CLAUSE.

THEY WILL STILL HAVE TO PERMIT.

THEY WILL STILL HAVE TO FOLLOW THE RULES OF THE ORDINANCE BUT THEY WILL BE EXEMPTED FOR THAT.

AND THAT'S BASED ON STATE LAW, NON-CONFORMING RIGHTS AND STUFF.

SO THAT'S BEEN DISCUSSED.

IT WILL BE IMPORTANT FOR US TO PASS THIS ORDINANCE.

AND WHEN WE PASS IT, THAT WILL KIND OF STOP THE GRANDFATHERING AND MOVING FORWARD ALL THE NEW ONES THAT COME IN WILL HAVE TO BE FOLLOWING THOSE RULES.

THERE WILL BE INSURANCE REQUIREMENTS.

ONE I THINK IS IMPORTANT IS THE BAD ACTOR SHORT-TERM RENTALS OUT THERE THAT SCARE EVERYBODY.

THE PARTY HOUSES OR THEY DON'T DO ANYTHING GOOD FOR THEIR NEIGHBORHOOD OR COMMUNITY.

IF THERE IS ENFORCEMENT ACTION, IF I HAVE THREE OR MORE VIOLATIONS WITHIN SIX MONTHS I WILL REVOKE THEIR PERMIT AND THEY WON'T BE ABLE TO HAVE THAT PERMIT FOR AT LEAST A YEAR.

SO THAT WAS KIND OF KEY.

WE NEED TO BE ABLE TO REVOKE THE PERMIT FOR BAD ACTORS.

SO IMPLEMENTING THE PROPOSED ORDINANCE.

I TOUCHED BASE A LITTLE BIT ON THAT.

WE RECOMMEND TODAY PASSING THE ORDINANCE AS IS.

IT WOULD BECOME EFFECTIVE IMMEDIATELY OR WITHIN TEN DAYS, DEPENDING ON THE NUMBER OF VOTES IF IT PASSES.

AND THEN ABOUT 90 DAYS TO FORMALLY REGISTER.

THAT GIVES US TIME AS A CITY TO BUILD OUR WEBSITE SYSTEM SO THAT THEY CAN EASILY ENTER INTO THE HOT PAYMENT AS WELL AS THE PERMITTING PART.

SO I HAVE TROY ELLIOTT AND CRAIG HOPKINS HERE THAT CAN TALK A LITTLE BIT ABOUT THAT IF NEEDED.

BUT IT WOULD BECOME EFFECTIVE UPON PASSING OF THE ORDINANCE.

THAT, AGAIN, WOULD SET THE DATE FOR THE GRANDFATHERINFAG.

SO, AGAIN, WE'RE GOING TO BUILD A WEBSITE ACCESSIBLE FOR MOBILE DEVICES, APPLICATION AND PAYMENT.

NOW OR LONG-TERM SOLUTION WILL BE TO PUT IT IN OUR BUILD SA SYSTEM THAT DEVELOPMENT SERVICES IS BUILDING RIGHT NOW.

BUT WE WILL HAVE A SHORT TERM AND LONG TERM FOR THAT.

TALK A LITTLE BIT ABOUT THE HOT, OR THE HOTEL OCCUPANCY TAX.

OF COURSE VERY EARLY ON WE VERIFIED THAT SHORT-TERM RENTALS ARE REQUIRED TODAY BY STATE AND LOCAL LAW TO PAY THE HOT TAX.

MANY OF THEM ARE PAYING IT, 400 OR SO IS WHAT WE HAVE AS OF THIS PAST WEEK.

HOWEVER, WE KNOW THAT THERE'S PROBABLY 1500, 2,000 OF THESE OUT THERE, AND THAT MEANS MANY OF THEM ARE NOT PAYING THE HOT.

THIS WILL GIVE US A BETTER OPPORTUNITY TO ENSURE COMPLIANCE WITH THOSE OPERATORS THROUGH THE SYSTEM.

AND I WILL SAY THAT FINANCE HAS RELEASED AN RFP.

THEY'RE WORKING ON IT TO IDENTIFY A THIRD PARTY COMPANY THAT WILL HELP IDENTIFY THESE STRS THAT ARE QUOTE UNQUOTE OPERATING IN THE CITY OR MAYBE NOT LEGAL YET.

SO WE'LL FIND THEM WITH THAT COMPANY.

THEY WILL HAVE ONLINE OPTIONS FOR PAYING THE HOT.

AND WE ANTICIPATE THAT WILL COME TO YOU ALL LATER THIS MONTH FOR SELECTION OF A VENDOR.

AND THERE WERE SOME FUNDS ALLOCATED IN THIS YEAR'S BUDGET FOR THAT THROUGH THE FINANCE BUDGET FOR BOTH THIRD PARTY AND SOME ADDITIONAL STAFF, COMPLIANCE STAFF.

OUR RECOMMENDATION TODAY IS TO APPROVE THE PROPOSED ORDINANCE AS WE HAVE OUT THERE, EFFECTIVE IMMEDIATELY UPON THE NUMBER OF VOTES.

IT GOES INTO EFFECT FOR REGISTERING, THE REQUIRED REGISTERING IN EARLY FEBRUARY.

AND, OF COURSE, I HAVE TO THANK -- I KNOW MANY OF THEM ARE HERE TODAY, THERE'S MANY TASK FORCE MEMBERS, RESIDENTS, INDUSTRY FOLKS THAT HELPED US WITH THIS ORDINANCE OVER THE LAST 18 MONTHS, SO I REALLY HAVE TO SAY THANKS.

AND OF COURSE TO MY STAFF THAT REALLY LED THIS CHARGE.

SO WITH THAT, I'LL BE HAPPY TO ANSWER ANY QUESTIONS.

>> MAYOR NIRENBERG: OKAY.

THANK YOU, MIKE.

WE HAVE SEVERAL CITIZENS SIGNED UP TO SPEAK ON ITEM NO. 4, SO I'LL BEGIN BY CALLING THEIR NAMES IN ORDER.

I'LL CALL THE FIRST NAME READY TO COME FORWARD AND SPEAK AND I'LL CALL THE NEXT NAME IN LINE, IF YOU CAN BE PREPARED TO COME TO THE PODIUM.

WE'LL START WITH JIM SMITH.

IS JIM SMITH HERE? OKAY.

TONY GARCIA.

[01:00:03]

MR. GARCIA, YOU WILL BE FOLLOWED BY COLLIN JONES.

>> GOOD MORNING, MAYOR AND CITY COUNCIL MEMBERS.

MY NAME IS TONY GARCIA.

I LIVE AT 243 EAST HUISACHE.

I AM A BOARD MEMBER OF THE MONTE VISTA HISTORICAL ASSOCIATION.

I'M ALSO A NEIGHBORHOOD REPRESENTATIVE ON THE CITY'S STR TASK FORCE.

I WOULD LIKE THIS MORNING TO READ A STATEMENT ON BEHALF OF THE ASSOCIATION.

OVER THE LAST YEAR THE MONTE VISTA HISTORICAL ASSOCIATION HAS FOLLOWED THE PROGRESS OF THE PROPOSED SHORT-TERM RENTAL ORDINANCE FROM ITS INCEPTION THROUGH ITS CITY REVIEW PROCESS.

DURING THIS REVIEW PROCESS, THE ASSOCIATION HAS CONTINUALLY SUPPORTED THOSE DRAFT AMENDMENTS WHICH HAVE INCREASED THE LEVEL OF PROTECTION FOR OUR NEIGHBORS, NEIGHBORHOODS, AND EVEN OUR CITY COFFERS WHILE PROTECTING THE RIGHTS OF STR OPERATORS.

WE BELIEVE THE PROPOSED ORDINANCE HAS REACHED A NEAR EQUITABLE LEVEL OF THE OWNER-OCCUPIED AND NON-OWNER-OCCUPIED RIGHT TO OPERATE.

IT ALSO ADDRESS THE CONCERNS AND NEEDS OF NEIGHBORHOODS BY PROTECTING HOUSING INVENTORY, HOUSING COST, AND, MOST IMPORTANTLY, ITS SENSE OF COMMUNITY AND ESSENTIAL BUILDING BLOCK OF OUR NEIGHBORHOODS.

BY NO MEANS IS THE ORDINANCE PERFECT BUT WE STILL SEE THIS AS A BALANCE AND SENSIBLE REGULATION THAT BENEFITS BOTH THE HOME SHARING ECONOMY AND NEIGHBORHOODS IN SAN ANTONIO.

WE RESPECTFULLY REQUEST THE CITY COUNCIL PASS THE SHORT-TERM RENTAL ORDINANCE WITHOUT FURTHER DELAY.

WE THANK YOU FOR YOUR CONSIDERATION.

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

COLLIN JONES.

MR. JONES WILL BE FOLLOWED BY RICKY KUSHNER.

>> YES, GOOD MORNING.

MY NAME IS CULLEN JONES, 1123 NOLAN.

MAYOR AND COUNCIL, AS AN ENGAGED CITIZEN I AND MANY OTHERS FROM MULTIPLE PERSPECTIVES PARTICIPATED IN THE CITY'S SHORT-TERM RENTAL TASK FORCE LAST YEAR.

THANKS TO THE GUIDANCE OF IN AUDIO] WAS PRODUCED.

I'VE LEARNED A GREAT DEAL ABOUT CITIZEN ENGAGEMENT, ORDINANCES, AND CITY POLITICS OVER THE LAST SEVERAL MONTHS.

THE TIME, THE ENERGY AND RESOURCES ARE BEFORE YOU IN REVISION OF THAT ORIGINAL ORDINANCE.

THIS ORDINANCE ISN'T PERFECT.

IT WILL NEED TO BE ADJUSTED AS SITUATIONS ARISE AND CLIMATES CHANGE.

HOWEVER, AS I SHARED WITH COUNCILMAN SHAW EARLIER THIS WEEK, THE ORDINANCE OFFERS NEIGHBORS, THEIR NEIGHBORHOOD AND THE RESPONSIBLE BUSINESS OWNERS MORE PROTECTION AND GUIDANCE THAN WHAT THEY HAVE CURRENTLY.

ADOPTING THIS ORDINANCE NOT ONLY LEVELS THE PLAYING FIELD FOR SMALL HOME-BASED BUSINESSES, IT ENCOURAGES THE AVAILABILITY OF RESIDENTS ACROSS A WIDER SWATH OF THIS CITY TO PARTICIPATE IN THE SHORT-TERM RENTAL BUSINESS MODEL AS HOST.

I CAN ONLY SPEAK TO WHAT I KNOW.

A ONE SQUARE MILE NEIGHBORHOOD WITHIN A DISTRICT WORKING ALONG OTHER -- EXCUSE ME.

WORKING ALONGSIDE OTHER NEIGHBORHOODS IN OTHER DISTRICTS IN A SPRAWLING CITY OF MILLIONS.

THIS ORDINANCE, I FEEL, OFFERS ALL DISTRICTS, ALL NEIGHBORHOODS, RESIDENTS, THE OPPORTUNITY TO CAPITALIZE ON THE SHORT-TERM RENTAL BUSINESS MODEL.

THE DENSITY MATRIX WITHIN THE ORDINANCE ENCOURAGES AND ENABLES THE SPREAD OF AN INCOME SOURCE TO MORE RESIDENTS IN OTHER DISTRICTS WHERE NEIGHBORHOODS -- EXCUSE ME, WHERE NEIGHBORS WOULD APPRECIATE AN ALTERNATIVE INCOME.

RELYING APPROXIMATELY 79% OF THE AIRBNB SHORT-TERM RENTALS ARE CONFINED TO JUST TWO OF D2'S FIVE ZIP CODES.

THE ORDINANCE ALSO RESPECTS THOSE WHO HAVE ABIDED BY THE LONG STANDING RULES AND REGULATIONS OF REGISTERING THEIR BUSINESSES WITH THE CITY AND BEING RESPONSIBLE CITIZENS.

LIKE ANY OTHER BUSINESS WITHIN A HOME, SUCH AS A NAIL SALON OR ACCOUNTANTS, THE SHORT-TERM RENTAL MODEL NEEDS TO BE HELD ACCOUNTABLE TO REFLECT THE STANDARD.

WITH 2,720 ACTIVE AIRBNB RENTALS, EXCLUDING OTHER PLATFORMS, THE CITY ESTIMATES LESS THAN 15%, AROUND 1,400 OPERATORS, HAVE REGISTERED THEIR BUSINESS.

FOR THE REASONS ABOVE, I ASK FOR YOUR SUPPORT OF THIS IMPORTANT PIECE OF LEGISLATION.

THANK YOU.

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

RICKY KUSHNER FOLLOWED BY COSA MCCOVIN.

>> I'M FREDERICKA KUSHNER AND I'M READING A LETTER FROM THE TIER ONE NEIGHBORHOOD COALITION STEERING COMMITTEE, OF WHICH I

[01:05:01]

AM A MEMBER.

THE T 1 STEERING COMMITTEE SUPPORTS THE PROPOSED CITY OF SAN ANTONIO ORDINANCE FOR SHORT-TERM RENTALS.

UNDER THE CURRENT UDC, THE SHORT-TERM RENTAL BUSINESS IS AN UNREGULATED INDUSTRY IN THE CITY.

THE HOME SHARING ECONOMY, SUCH AS AIRBNB, HOME AWAY, FLIP KEY, AND VRBO, ALLOWING HOME OWNERS TO LIST BEDROOMS, ACCESSORY BUILDINGS OR ENTIRE HOUSES FOR SHORT-TERM RENTALS HAS CHANGED THE LANDSCAPE OF RESIDENTIAL NEIGHBORHOODS IN SAN ANTONIO AS WELL AS ACROSS THE NATION.

THE TIER ONE STEERING COMMITTEE MEMBERS BELIEVE PROTECTING OUR NEIGHBORS AND NEIGHBORHOODS IS PARAMOUNT IN PRESERVING AND SUSTAINING THE CULTURAL HISTORY OF SAN ANTONIO.

THE THREE OF THE CURRENT AND ONE FORMER STEERING COMMITTEE MEMBER SERVED ON THE TASK FORCE AS NEIGHBORHOOD REPRESENTATIVES.

WE WORKED FOR ALMOST A YEAR TOGETHER WITH A GROUP OF STR OPERATORS AND OTHER STAKEHOLDERS TO DEVELOP SENSIBLE REGULATION THAT WOULD ALLOW FOR STRS TO HAVE THEIR RIGHTFUL PLACE IN THE ECONOMY WITHOUT ENCROACHING ON THE PROPERTY RIGHTS OF NEIGHBORS AND NEIGHBORHOODS.

ONE OF THE STRONGEST CONCERNS THAT WE HEARD FROM NEIGHBORS WAS THAT RESIDENTIAL BLOCKS ARE LOSING NEIGHBORS BECAUSE OF THE INCREASING PROLIFERATION OF STR RENTALS.

WE TOOK THIS INPUT SERIOUSLY AND DID OUR BEST TO CRAFT AN ORDINANCE THAT WOULD PROTECT NEIGHBORHOODS FROM UNREGULATED INFRINGEMENTS BY THIS INDUSTRY WHILE ALLOWING HOMEOWNERS AND INVESTORS TO BENEFIT FROM THE BUSINESS OF PROVIDING TOURIST ACCOMMODATIONS.

WE FEEL THAT THE PROPPED ORDINANCE DOES THAT TO THE BEST OF ITS ABILITY OF THAT COMPROMISE ENTAILS.

WE THINK THAT ADDED BENEFIT TO THE DENSITY -- PARDON ME.

WE THINK THAT AN ADDED BENEFIT TO THE DENSITY RESTRICTIONS IS THAT IT WILL ENCOURAGE INVESTMENT WE BELIEVE THE STR ORDINANCE TO BE THE FIRST STEP TOWARD A SENSITIVE AND BALANCED APPROACH IN PROTECTING BOTH SAN ANTONIO LEGACY NEIGHBORHOODS AND RESPONSIBLE BUSINESS OWNERS.

WE ALSO THINK IT IS IMPORTANT TO MAKE THIS FIRST STEP NOW.

WITH THE KNOWLEDGE THAT, AS IS THE CASE WITH MUCH LEGISLATION, FUTURE ADJUSTMENTS TO THE ORDINANCE MAY BECOME NECESSARY ONCE THE CITY CAN QUANTIFY AND EVALUATE THE RESULTS.

WE ALL KNOW THAT THIS IS A CONCERN THAT CITIES ALL OVER THE STATE, THE NATION, AND THE WORLD ARE STRUGGLING WITH TO VARYING DEGREES AND THAT TO DO NOTHING WOULD BE A DISSERVICE, ESPECIALLY TO OUR TIER ONE NEIGHBORHOODS.

AS A COALITION, WE ENCOURAGE OUR INDIVIDUAL MEMBERS TO SPEAK UP FOR THEMSELVES, BUT WE FEEL CONFIDENT THAT WE HAVE REPRESENTED THE MAJORITY OF THEM FAIRLY.

WE REQUEST YOUR SUPPORT.

>> MAYOR NIRENBERG: THANK YOU, MS. KUSHNER.

COSEEMA COLVIN.

>> GOOD MORNING, MAYOR, CITY COUNCIL MEMBERS.

BEACON HILL -- OH, 817 WEST MAGNOLIA BEACON HILL DISTRICT 1.

BEACON HILL IS A NEIGHBORHOOD NEAR DOWNTOWN CENTER THAT HAS BECOME A DESIRABLE PLACE TO LIVE.

OUR NEIGHBORHOOD'S RESILIENCY HAS BEEN DUE IN LARGE PART TO THE HARD WORK OF THE PEOPLE WHO LIVE THERE.

THE BEACON HILL NEIGHBORHOOD ASSOCIATION IS DEDICATED TO NEIGHBORHOOD UNITY AND REVITALIZATION.

THIS MISSION APPLIES TO THOSE THAT HAVE MADE BEACON HILL THEIR HOME FOR MANY YEARS AND IN SOME CASES MULTIPLE GENERATIONS AS WELL AS FOR THOSE THAT HAVE MOVED HERE RECENTLY.

THE GROWING POPULATION, THE REVITALIZATION OF DOWNTOWN, AND THE RESURGENCE OF INTEREST IN URBAN LIVING HAVE ALL RESULTED IN AN INCREASED POPULARITY OF OUR NEIGHBORHOOD AND OTHERS IN THE NEIGHBORHOOD CORE.

WHILE THIS IS GENERALLY POSITIVE, IT DOES NOT COME WITHOUT ITS NEGATIVE IMPACTS.

AND THOSE ARE THE ISSUES THAT WE NEED TO MAKE SURE THAT WE ARE MONITORING AND ADDRESSING IN ORDER TO TAKE ADVANTAGE OF THE GOOD AND MITIGATE THE SOMETIMES UNINTENDED CONSEQUENCES SUCH AS THE LOSS OF A SENSE OF COMMUNITY.

THE BEACON HILL AREA NEIGHBORHOOD ASSOCIATION BOARD, AFTER PUBLIC DISCUSSION AT OUR GENERAL ASSEMBLY MEETING AND THE ZONING AND URBAN DESIGN COMMITTEE HAVE VOTED TO SUPPORT THE STR ORDINANCE.

WE BELIEVE THAT THE PROPOSED ORDINANCE BOTH ALLOWS AND SUPPORTS THE ABILITY FOR HOMEOWNERS AND SMALL INVESTORS TO BENEFIT FROM THIS NEW COTTAGE INDUSTRY WHILE MAINTAINING A CULTURE AND ENVIRONMENT THAT SUPPORTS COMMUNITY.

WE BELIEVE THAT ALL HOMEOWNERS HAVE PROPERTY RIGHTS.

THOSE THAT WISH TO TAKE ADVANTAGE OF HOME-BASED BUSINESS OPPORTUNITIES AS WELL AS HOMEOWNERS THAT HAVE A RIGHT TO AN EXPECTATION THAT LIVING IN AN AREA THAT IS ZONED FOR RESIDENTIAL USE WILL, IN FACT, REMAIN A PREDOMINANTLY

[01:10:03]

FAMILY-ORIENTED COMMUNITY-BASED EXPERIENCE.

THANK YOU.

>> MAYOR NIRENBERG: THANK YOU.

LYNN KNAPIK FOLLOWED BY MARGARET LEADS.

>> GOOD MORNING.

I'M LYNN KNAPIK.

I LIVE AT 312 I LIVE AND WORK THERE.

AND I AM A LICENSED REAL ESTATE BROKER IN THE STATE OF TEXAS.

AND I'M A MEMBER OF THE SAN ANTONIO BOARD OF REALTORS.

BUT I DO NOT REPRESENT THEM TODAY.

I REPRESENT ME AND MY FRIENDS AND NEIGHBORS.

SO AS I SAID, I LIVE AND WORK AT PEARL AND I HAVE BEEN AFFECTED MYSELF BY AN AIRBNB NEXT DOOR.

EVEN THOUGH IN EVERY APARTMENT COMPLEX IN TOWN THEY ARE TOTALLY AGAINST YOUR LEASE.

SO, THEREFORE, MY NEIGHBOR GOT EVICTED.

I WILL SAY IN FULL DISCLOSURE I NOW RENT THAT APARTMENT IN AUDIO] HE SAYS THAT I GOT MY NEIGHBOR KICKED OUT SO I COULD HAVE AN OFFICE, BUT THAT'S NOT TRUE.

ANYWAY, BUT IT WAS A PROBLEM.

EVEN IN AN APARTMENT COMPLEX IT WAS A PROBLEM.

MY SON IN STONE OAK HAS HAD THE PROBLEM.

A HOUSE NEXT DOOR TO HIM HAD 18 PEOPLE NEXT TO HIM, ENJOYED THE SWIMMING POOL AND OUTDOOR NEIGHBOR.

THEY WERE ABLE TO TALK TO THEIR NEIGHBOR AND GET THAT PROBLEM RESOLVED.

EARLIER THIS YEAR I SERVED ON THE MAYOR'S HOUSING TASK FORCE, ONE OF THE WORKING GROUPS, THE RESILIENT NEIGHBORHOOD OF THE MAYOR'S HOUSING TASK FORCE, AND I LEARNED A LOT ABOUT HOW SHORT-TERM RENTALS WERE AFFECTING THE PEOPLE IN THE NEIGHBORHOODS OF THE URBAN NEIGHBORHOODS OF SAN ANTONIO.

I LEARNED THAT MANY OF THEM WERE LOSING THE FABRIC OF THAT ONCE CLOSE-KNIT FEELING THAT THEY HAD OF FRIENDSHIPS AND FAMILIES IN THEIR NEIGHBORHOODS.

I ALSO SAW THERE, AND I SEE IN MY BUSINESS, HOW INVESTORS ARE GOBBLING UP PROPERTIES IN URBAN NEIGHBORHOODS, TAKING THESE DESPERATELY NEEDED AFFORDABLE-TYPE HOUSING PRODUCTS AWAY FROM THESE NEIGHBORHOODS.

SO IT'S GIVEN ME A DIFFERENT OUTLOOK AS I DO WORK WITH PEOPLE COMING HERE FROM OTHER PLACES.

RECENTLY I HAD TWO GENTLEMEN FROM SEATTLE THAT WANTED TO MOVE HERE MAYBE LATER, BUT THEY WANTED TO BUY SOMETHING NOW THAT THEY COULD RENT.

I GAVE THEM A COPY OF THE ORDINANCE THAT WAS PROPOSED SO THAT THEY COULD KNOW EXACTLY WHAT THEY WOULD BE LOOKING AT IF THEY DID DECIDE TO DO THAT.

WHILE I LEARNED -- WHAT I LEARNED HAS AFFECTED HOW I INTERACT WITH POTENTIAL BUYERS OR EVEN WITH RENTERS IN NEIGHBORHOODS.

YES, THERE ARE PEOPLE COMING INTO THE NEIGHBORHOODS RENTING HOUSES AND THEN TURNING AROUND AND MAKING THOSE SHORT-TERM RENTALS.

AND THAT GIVES ONE MORE LAYER OF INEFFECTIVE OVERSIGHT TO THOSE PROPERTIES WHEN THE RENTER LIVES SOMEWHERE ELSE.

SO I SUPPORT THE ORDINANCE AS IT IS IN PLACE.

>> MAYOR NIRENBERG: THANK YOU, MS. KNAPIK.

MARGARET LEADS FOLLOWED BY ROSELYN COGBURN.

>> GOOD MORNING, HONORABLE MAYOR AND CITY COUNCIL.

THANK YOU FOR THE OPPORTUNITY TO BE HEARD.

I AM MARGARET LEADS.

I AM A HOMEOWNER RESIDENT AT 308 KING WILLIAM.

I DON'T HAVE COMBAT BOOTS BUT OUR NEIGHBORHOOD HAS A LONG HISTORY OF SCARS FROM AGGRESSIVE CIVIC PARTICIPATION.

IN THE 1950S AND 1960S, THE WOMEN IN THE NEIGHBORHOOD BATTLED THE FREEWAY THAT WAS GOING TO BULLDOZE THE NEIGHBORHOOD.

AND THEY STOPPED THE CORPS OF ARMY ENGINEERS FROM DESTROYING THE TREES WITH THEIR RIVER PROJECT.

BY THE 1970S WE WERE BATTLING THE SAN ANTONIO INDEPENDENT SCHOOL DISTRICT THAT RAISED FOUR ADJACENT BLOCKS OF HOUSES TO BUILD A GIANT FOOD PROCESSING DISTRIBUTION CENTER , AND THE BATTLE RESULTED IN THAT SPACE BECOMING A PARK AND HOUSING OF OFFICES FOR THE SAN ANTONIO HOUSING AUTHORITY.

IN THE LATE '90S WE LABORED TO CONVINCE THE CITY TO BAN THE TOUR BUSES THAT WERE RUMBLING NOISILY THROUGH THE NEIGHBORHOOD, RATTLING FOUNDATIONS AND GIVING OFF EXHAUST FUMES.

KING WILLIAM IS SLOWLY GENTRIFIED.

WHAT WAS ONCE A DECAYING NEIGHBORHOOD WITH COTTAGES SPRINKLED AMONG MANSIONS, CUT UP INTO CHEAP APARTMENTS, IS NOW A VIBRANT NEIGHBORHOOD OF ONCE AGAIN GRAND MANSIONS AND STYLISH RENOVATED COTTAGES.

AS A RESULT, FIGHTS THAT ONCE NECESSITATED BY THE FACT THAT THE NEIGHBORHOOD WAS VIEWED AS DISPOSABLE ARE NOW NECESSITATED

[01:15:02]

BY THE FACT THAT IT IS VIEWED AS PRECIOUS.

IN THE PAST FEW YEARS, KING WILLIAM AND THE ADJACENT LAVACA NEIGHBORHOOD HAVE SEEN SHORT-TERM RENTALS QUIETLY BUT AGGRESSIVELY INFILTRATE OUR HOUSING STOCK.

THE STR TYPE TWO ARE NOT OWNER OCCUPIED BUT ARE RENTED OUT, OFTEN BY OWNERS WHO DON'T LIVE IN THE NEIGHBORHOOD.

IN FACT, SOME LIVE IN OTHER STATES.

MANY HAVE REALTOR-STYLE LOCK BOXES SO THE CUSTOMERS NEVER EVEN SEE THE OWNERS.

THESE ARE PURE AND SIMPLE BUSINESSES.

THAT DOESN'T MAKE THE BUSINESS PEOPLE WHO OWN THEM BAD PEOPLE, BUT IT DOES MAKE THEIR INTERESTS AS MUCH CONTRARY TO THE NEIGHBORHOODS AS WOULD ANY OTHER BUSINESS THAT TOOK OVER THE HOUSES.

ASK YOURSELF WHAT MAKES A GOOD NEIGHBORHOOD.

THE ANSWER IS SIMPLE.

NEIGHBORS.

HOMEOWNER OR LONG-TERM RENTER.

IN KING WILLIAM RENTERS ARE A AN IMPORTANT PART OF THE NEIGHBORHOOD.

IT IS NOW YOUNG PEOPLE ENTER AND BECOME PART OF THE COMMUNITY.

[BEEPING]

>> MAYOR NIRENBERG: GO AHEAD AND FINISH, MS. LEADS.

>> I HAVE YIELDED TIME.

>> MAYOR NIRENBERG: WHAT'S YOUR NAME, MA'AM? YOU HAVE THREE MINUTES, MS. LEADS.

>> IN KING WILLIAM, RENTERS ARE AN IMPORTANT PART OF THE NEIGHBORHOOD.

IT IS HOW YOUNG PEOPLE ENTER AND BECOME PART OF THE COMMUNITY.

BUT NOW WHEN SAN ANTONIO'S HOUSING STOCK IS LAGGING IN GROWTH, MANY OF THE SMALL RENTAL HOUSES ARE BECOMING NONOWNER-OCCUPIED STRS.

THESE SOME REASONS WHY THE KING WILLIAM BOARD VOTED TO OPPOSE NONOCCUPIED HOUSES IN OUR NEIGHBORHOOD.

WHAT HAS MADE KING WILLIAM SO ATTRACTIVE TO THOSE WHO WOULD MONETIZE IT IS PRECISELY THOSE OF US WHO HAVE BOUGHT HOMES HERE DID SO WITH THE UNDERSTANDING THAT WE WOULD FOLLOW THE HISTORIC DISTRICT'S RESTRICTIONS ON OUR OWN PROPERTY RIGHTS.

SO THE STRUCTURES ARE PROTECTED.

IT IS THE SUBSTANCE OF THE NEIGHBORHOOD THAT IS THREATENED.

ABOUT 25 YEARS AGO, OUR NEIGHBORHOOD WENT THROUGH EXTENDED AND INTENSE NEGOTIATIONS OVER A VERY SIMILAR ISSUE.

THE REGULATION OF BED AND BREAKFASTS.

WE AGREED TO THE DENSITY RULES.

THE PROBLEM IS THESE RULES WERE NOT OFTEN ENFORCED.

MANY OF THE B&BS ARE NOW LISTED ALSO WITH ONLINE SERVICES SUCH AS AIRBNB.

BECAUSE OF THE ONLINE SERVICES, THE NEW SHORT-TERM RENTALS APPEAR MORE OF A THREAT THAN THE OLD STYLE B&BS TURNED OUT TO BE.

THE PROPOSED ORDINANCE CITY STAFF IS PRESENTING TO CITY COUNCIL WOULD ALLOW BUT WOULD LIMIT THE DENSITY OF TYPE TWO UNITS.

IT'S A COMPROMISE.

BUT WE ASK THAT YOU PASS THE ORDINANCE AND ENFORCE IT TO PROTECT OUR NEIGHBORHOOD FROM THIS CURRENT THREAT.

LET US LIVE NEXT DOOR TO A NEIGHBOR, NOT A BUSINESS.

THIS COMPROMISE WILL SERVE.

OTHERWISE, WE'LL HAVE TO MAN THE BARRICADES ONCE AGAIN, EVEN IF WEAKENED BY HAVING FEWER NEIGHBORS AND MORE MONEY INTEREST LINED UP AGAINST US.

AND I REFERENCE THE ARTICLE THAT I HAVE QUOTED OFTEN FROM RICK CASEY.

THANKS TO OUR DEAR NEIGHBOR, RICK.

THANK YOU.

>>>> MAYOR NIRENBERG: THANK YOU, MS. LEADS.

STELLA DE LA GARZA.

MS. DE LA GARZA, YOU'LL BE FOLLOWED BY DAVID TIPTON.

>> THANK YOU, MAYOR AND COUNCIL MEMBERS.

I AM SPEAKING ON BEHALF OF SUSAN BEVIN AND THE SAN ANTONIO CONSERVATION SOCIETY.

THE SAN ANTONIO CONSERVATION SOCIETY HAS WORKED OVER THE LAST YEAR WITH NEIGHBORHOOD RESIDENTS TO MAKE SURE THAT THE SHORT-TERM RENTALS ORDINANCE SUPPORTS HEALTHY COMMUNITIES.

OUR HISTORIC DISTRICTS WERE CREATED BY BUILDING OWNERS WHO INVESTED THEIR TIME AND MONEY IN RESTORING AND PRESERVING BUILDINGS THAT BENEFIT THE ENTIRE CITY.

THEIR ONGOING STEWARDSHIP IS ESSENTIAL TO THE FUTURE PRESERVATION OF OUR HISTORIC DISTRICTS.

WHILE WE URGE THAT ONLY TYPE ONE OWNER OCCUPIED SHORT-TERM RENTALS SHOULD BE ALLOWED IN THE CITY'S HISTORIC DISTRICTS, WE DO NOT OPPOSE THE LANGUAGE THAT LIMITS TYPE TWO STRS TO 12.5% OF THE BLOCK FACE IN ALL RESIDENTIAL DISTRICTS.

RESIDENT OWNERS ARE THE BEST STEWARDS OF PROPERTIES.

ABSENTEE OWNERS ARE UNABLE TO PARTICIPATE IN COMMUNITY

[01:20:01]

STEWARDSHIP IN A MEANINGFUL EXTENT -- TO A MEANINGFUL EXTENT.

THE SOCIETY IS PLEASED TO SEE THAT THE INCREDIBLE AMOUNT OF WORK THAT WENT INTO THE 1999 BED AND BREAKFAST ORDINANCE IS RECOGNIZED AND REFLECTED IN THE SHORT-TERM RENTAL ORDINANCE.

WE SUPPORT THE LANGUAGE ADDED IN B SESSION REGARDING EVENTS, FOOD, AND BEVERAGE SERVICE.

THE POINT OF THIS LAW IS TO ALLOW REASONABLE ADDITIONAL INCOME FROM PROPERTIES, NOT TO CREATE COMPETITION WITH HOTELS.

THE SOCIETY URGES THE CITY COUNCIL TO REQUIRE AN INITIAL SAFETY INSPECTION BY THE CITY RATHER THAN ALLOWING SELF-CERTIFICATION AND INSPECTION BY COMPLAINT.

WHILE THE ORDINANCE IS NOT IDEAL, IT TAKES STEPS TOWARDS ENSURING THAT THE INCREDIBLE INVESTMENT OF NEIGHBORHOOD TIME AND TREASURE IN SAN ANTONIO'S HISTORIC DISTRICTS WILL BE CONSERVED.

STEWARDSHIP REQUIRES PERMANENT RESIDENCE WITH EYES ON THE STREET AND FEET ON THE GROUND.

THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, MS. DE LA GARZA.

DAVID TIPTON FOLLOWED BY MARY JOHNSON.

>> MY NAME IS DAVID TIPTON AND I LIVE AT 1032 TOYOGA.

AND I WANT TO SPEAK TO YOU BECAUSE AT THIS MEETING AND THE LAST MEETING THE SHORT-TERM RENTAL TYPE TWO RENTALS HAVE BEEN REPRESENTED AS BIG BUSINESS OR INVADERS IN THE NEIGHBORHOOD.

AND I WOULD LIKE TO POINT OUT AND EXPLAIN TO YOU THAT MANY OF THESE OWNERS ARE, IN FACT, RETIRED CITIZENS OF SAN ANTONIO THAT HAVE INVESTED THEIR LIFE SAVINGS INTO THESE PROPERTIES.

IT'S A SHORT-TERM RENTAL BUT MANY OF THESE OWNERS ARE SMALL BUSINESSES.

AND THIS CREATES AN IMPORTANT PART OF THEIR INCOME.

AND THESE PEOPLE MANY TIMES LIVE IN THE NEIGHBORHOOD AND WORK IN THE NEIGHBORHOOD, AS OPPOSED TO WHAT MANY PEOPLE HAVE SAID TODAY AND AT THE PREVIOUS MEETING.

AND I KNOW THAT THE CURRENT -- THE PROPOSED ORDINANCE HAS GRANDFATHERED AND PROTECTED THE CURRENT PEOPLE WHO ARE PAYING TAXES AND ALREADY HAVE BUSINESSES ESTABLISHED.

BUT I KNOW THAT THE ORDINANCE COULD BE ADJUSTED IN THE FUTURE AND I AM JUST ASKING THE COUNCIL MEMBERS TO CONTINUE TO PROTECT THE PEOPLE WHO ARE CURRENTLY FOLLOWING THE LAW AND DOING THIS TYPE OF BUSINESS.

THE WORD "GRANDFATHERING" DOESN'T APPEAR IN THE ORDINANCE I HAVE READ.

I BELIEVE THAT THAT SECTION OF THE ORDINANCE IS TERMED NON-CONFORMING RIGHTS.

ANYWAY, I'M JUST ASKING YOU TO CONTINUE TO PROTECT THOSE PEOPLE.

THANK YOU.

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

MARY JOHNSON.

IS MS. JOHNSON HERE? JACK FINGER.

FOLLOWED BY IRMA HOFFMAN.

>> MAYOR NIRENBERG AND OTHER MEMBERS OF OUR ILLUSTRIOUS SAN ANTONIO CITY COUNCIL.

FOR THE RECORD, MY NAME IS JACK M. FINGER.

YES.

THE PEOPLE WHO HAVE PRECEDED ME AT THIS PODIUM, THEY HAVE ARTICULATED QUITE WELL THE PROBLEM THAT THEY ARE TRYING TO SEEK A REMEDY FOR.

YES.

THEY ARE CITIZENS.

CITIZENS OF THE CITY.

THEY ARE CITIZENS OF THEIR NEIGHBORHOODS.

THEY CARE ABOUT THEIR NEIGHBORHOODS.

THEY WANT TO MAKE SURE THEIR NEIGHBORHOODS ARE LIVABLE.

THEY WANT TO MAKE SURE IT'S A PLEASANT PLACE TO LIVE.

THEY SEE VISITORS.

WELL, JUST RETURN THE CAMERA TO THE PODIUM FOR A MOMENT, IF YOU WOULD.

RETURN THE CAMERA TO THE PODIUM.

THANK YOU.

THERE ARE VISITORS WHO ARE COMING IN.

AND ARE THE VISITORS INNOCUOUS INNOCENT PEOPLE JUST PASSING THROUGH? OR CAN THEY BE CONSIDERED INTRUDERS? WELL, IT ALL DEPENDS ON ONE'S OUTLOOK ON THESE THINGS.

MANY OF THESE PEOPLE ARE COMING IN.

THEY ARE JUST VISITING.

THEY ARE TAKING ADVANTAGE OF AN ENTREPRENEURSHIP OF SOME PEOPLE IN THE NEIGHBORHOODS THERE.

BUT THE CITIZENS WHO LIVE THERE ALREADY, THEY THINK THAT THE NEIGHBORHOODS ARE -- THEIR CHARACTER IS BEING CHANGED BY PEOPLE WHO DON'T EVEN LIVE THERE AND WHO MAY NOT NECESSARILY CARE ABOUT WHAT GOES ON IN THE NEIGHBORHOOD THERE.

[01:25:02]

NOW, THESE VISITORS TO SAN ANTONIO, THEY COME IN AND THEY ARE -- THAT'S JUST WHO THEY ARE.

THEY MAY BE TOURISTS.

ONE GUY SAYS TO HIS WIFE, MYRTLE, LET'S GO DOWN AND VISIT THE ALAMO BEFORE THE MOVE THE CENOTAPH.

YEAH.

AND WE WANT TO SEE THAT BEFORE THAT HAPPENS AND BEFORE THEY CLOSE ALAMO STREET.

YES, LET'S GO SEE IT WHILE WE HAVE A CHANCE.

SO THEY CALL THE MARRIOTT HOTEL.

MARRIOTT HOTEL, WHAT DO YOU CHARGE FOR A NIGHT? THE MARRIOTT GIVES THEM A BIG PRICE.

MY GOD, THAT'S EXORBITANT.

WHAT'S DRIVING IT UP? WELL, WE'LL TELL YOU.

TURN ON THE CAMERA, MR. AUDIO-VISUAL MAN.

IT'S THE 16.75% HOTEL/MOTEL TAX.

THE STATE GETS 6%.

THAT'S WHAT'S DRIVING UP SO MUCH OF IT AND THAT'S WHY THE GUY SAYS, HEY, I THINK WE HAVE AN OPPORTUNITY HERE IN BEACON HILL FOR SOMETHING ABOUT HALF THAT PRICE.

SO, YES.

16.75%.

OKAY.

YOU CAN RETURN THE CAMERA NOW, PLEASE.

YEAH.

I MEAN, YOU, AS A CITY COUNCIL, YOU CAN DO SOMETHING ABOUT THAT EXORBITANT TAX, BUT WILL YOU? NO.

YOU WANT ALL THAT MONEY COMING IN FOR THE -- OH, THE DELEGATES ARTS AGENCIES LIKE THE ESPERANZA, PRO HOMOSEXUAL, PRO ABORTION.

YOU NAME IT.

YOU GET THE GIST OF IT.

THAT'S WHAT YOU WANT IT FOR.

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

IRMA HOFFMAN FOLLOWED BY CHARLOTTE CUR.

>> GOOD MORNING, MAYOR AND GOOD MORNING COUNCIL MEMBERS.

MY NAME IS IRMA HOFFMAN.

I WAS BORN AND RAISED A MILE AND A HALF FROM HERE IN MY GREAT GRANDFATHER'S HOME, WHICH IS STILL STANDING ACROSS FROM THE HISTORIC STOCKYARDS.

I ALSO WANT TO SAY THAT I OWN AND I RENT A SMALL SEVEN-ROOM HOME, A SWEET LITTLE HOME ON MERIDA STREET AND I RENT THIS FOR $650 A MONTH.

NOW, AS YOU ALL KNOW, A LARGE PERCENTAGE OF OUR WEST SIDE RESIDENTS EARN THEIR LIVING BY EMPLOYMENT WHICH ENTAILS TWO OR THREE JOBS IN ORDER TO SUPPORT THEIR FAMILIES.

ADDITIONALLY, WE HAVE SENIORS WHO MAY RENT OUT A ROOM OR THEIR GARAGE APARTMENTS IN ORDER TO SUPPLEMENT THEIR SOCIAL SECURITY INCOME.

SO, IT IS IMPORTANT TO PROMOTE LONG-TERM RENTERS THAT PROVIDE DECENT, SAFE, AND AFFORDABLE HOUSING.

NOW, THE WEST SIDE IS SEEING BIG DEVELOPERS COMING IN, DRIVING AROUND THE NEIGHBORHOODS AND SHOWING THEIR GOLD TO SOME POOR PEOPLE WHO THINK THAT $10,000 FOR THEIR LITTLE HOME, THEIR LITTLE CASITA, IS A WONDERFUL DEAL.

WHEN SOMEONE HASN'T SEEN $10,000 IN CASH IN THEIR LIVES IN HAND.

THE CONCERN IS THAT IF THE DEVELOPERS ARE ALLOWED TO DEMOLISH THESE HOMES AND BUILD THEIR FANCY BED AND BREAKFAST CONDOS, IT WILL HAVE A CAUSE AND EFFECT ON OUR WEST SIDE.

THIS WILL ALSO PUSH SOME PEOPLE OUT OR HAVE HIGH RENTS THAT THEY CAN'T AFFORD.

AND ADDITIONALLY THEY WILL HAVE AN INCREASED TAX BURDEN, BECAUSE WE'RE SEEING THAT, AS YOU ALL KNOW.

SO WE ARE AT A TURNING POINT.

DO WE CARE TO PRESERVE AND RENOVATE OUR OLDER NEIGHBORHOODS AND HELP THESE PEOPLE WHO HAVE WORKED HARD TO BUILD THEIR LITTLE STORES, THEIR BAKERIES, THEIR LITTLE MECHANIC SHOPS.

SO WHEN YOU DRIVE BY THE WEST SIDE, ESPECIALLY ON GUADALUPE STREET, YOU SEE THE CHARACTER AND THE HEART.

YOU SEE THEIR BEAUTIFUL MURALS.

OKAY.

AM I UP? IS IT UP? THANK YOU.

THE BEAUTIFUL PHOTOGRAPHS THEY HAVE OF THE 1900S.

AND I DO WANT TO POINT OUT THAT NEW YORK CITY HAS BEEN ABLE TO PRESERVE ITS CHINA TOWN, IT'S LITTLE ITALY.

CHICAGO HAS ITS PILLSON GROUPS.

SO, AGAIN, WE WANT TO PRESERVE OUR NEIGHBORHOODS AND HAVE

[01:30:02]

AFFORDABLE DECENT LIVING FOR OUR PEOPLE.

THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, MS. CUR.

ALL RIGHT.

THAT IS EVERYONE WHO SIGNED UP TO SPEAK ON ITEM NO. 4.

COUNCILMAN TREVINO.

>> EXCUSE ME, HONORABLE MAYOR.

MY NAME IS CHARLOTTE CUR.

YOU CALLED ME TO COME UP.

>> MAYOR NIRENBERG: I'M SORRY.

THANK YOU, MS. HOFFMAN.

CHARLOTTE CUR.

>> THANK YOU FOR HONORING MY TIME, HONORABLE MAYOR AND CITY COUNCIL MEMBERS.

MY NAME IS CHARLOTTE CUR.

I OWN A TYPE ONE SHORT-TERM RENTAL IN OLMOS PARK TERRACE.

I'M IN A HISTORIC NEIGHBORHOOD AND ALSO AM A REAL ESTATE BROKER AND VERY MUCH INVOLVED WITH THE SHORT-TERM RENTAL BUSINESS PLATFORM THROUGH AIRBNB.

I OWN AND RENT THROUGH AIRBNB.

I WAS ON THE TASK FORCE WITH THE CITY.

AND WHAT I KNOW TO BE TRUE ABOUT THE WORK OF THE TASK FORCE THAT BROUGHT US TO THIS POINT TODAY IS THAT WE LIVED WITHIN THE DEMOCRATIC PROCESS.

SO WE ALL BROUGHT DIFFERENT FACTIONS AND IDEAS TO THE TABLE.

THERE WERE ARGUMENTS, THERE WERE AGREEMENTS, AND COMPROMISES, AND THIS IS WHERE WE

>> SO THIS IS THE WORK OF YOUR CITIZENS OF ORDINANCES, AND I APPRECIATE YOUR LOOKING AT THEM AND VOTING ON THEM.

IT IS A WIN.

NOT EVERYBODY IS HAPPY ABOUT IT.

I THINK THE BIGGEST CONCERN THAT YOU NEED TO KNOW OF CITIZENS, WE REALLY DON'T KNOW IF THERE'S 2,000 OF US, BECAUSE IT'S HARD TO COUNT US, RIGHT? THERE'S ONLY 400 PAYING HOTEL TAX.

BUT THOSE WHO ARE NOT PAYING HOTEL TAX ARE VERY CONCERNED, SO KEEP THAT IN MIND, THAT WE -- I DON'T BELIEVE THAT OUR CITY WANTS TO CLOSE DOWN PEOPLE'S BUSINESSES.

I THINK PEOPLE SHOULD BE COMING TO COMPLIANCE WITH THE ORDINANCE.

WE'VE BEEN IN A REGULATORY ENVIRONMENT FOR -- SINCE THE BEGINNING, I THINK, 2012, 2013 MAY BE THE FIRST SHORT-TERM RENTAL SHOWED UP HERE, AND IT IS GOOD TO HAVE AN ORDINANCE THAT WILL SUSTAIN US AND WILL SUSTAIN OUR CITY, AND IT MAY NEED TO BE TWEAKED AS TIME GOES ON, WE DON'T KNOW, BUT I REALLY APPRECIATE YOUR APPROVING IT AND I APPRECIATE THE TIME.

THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, MRS. CUR.

COUNCILMAN TREVINO.

>> TREVINO: THANK YOU, MAYOR, AND THANK YOU FOR BRINGING THIS ITEM TO COUNCIL.

I WOULD ALSO LIKE TO RECOGNIZE MY FORMER COUNCIL COLLEAGUE COUNCILMAN MIKE GALLAGHER FOR INITIATING THE EFFORT WHILE HE WAS ON COUNCIL.

I SPECIFICALLY WANT TO THANK THE TASK FORCE WHO HAS WORKED VERY HARD GETTING TO THIS COMPROMISE MOVING FORWARD.

I ALSO WANT TO THANK MIKE SHANNON, ALL YOUR HARD WORK.

WE EVEN HAD SOME GREAT EXAMPLES THROUGHOUT THE PROCESS THAT WE WORKED IN AND LEARNED FROM IN TERMS OF HOW WE ADDED TO THIS COMPROMISE.

OF COURSE, DISTRICT 1 TOOK THE LEAD ON THIS STR ISSUE BECAUSE DISTRICT 1 DOES BEAR THE BULK OF STRS IN OUR CITY.

IT IS IN ALL LIKELIHOOD HAS THE LARGEST NUMBER OF HISTORIC DISTRICTS, NEIGHBORHOODS, CONSERVATION DISTRICTS AND ESTABLISHED LEGACY NEIGHBORHOODS IN OUR CITY.

IN CONSIDERING THE STRS, IT'S IMPORTANT THAT WE STRIKE THE RIGHT BALANCE AS YOU HEARD. I THINK THAT WAS REALLY CLEAR IN THE STATEMENTS TODAY, IT WAS CERTAINLY CLEAR IN THE TASK FORCE INTENTIONS, HOW DO WE FIND THAT BALANCE.

THAT BALANCE THAT ALLOWS THE PERMITTING OF STRS WHILE PROTECTING OUR BEAUTIFUL NEIGHBORHOODS.

IN CONSIDERING THE STRS, IT IS IMPORTANT THAT WE UNDERSTAND THE FACT THAT WE WANT TO -- WE WANT TO UNDERSTAND THE DIFFERENT TYPES, TYPOLOGIES, THE TYPE 1 AND THE TYPE 2.

WE ARE FORTUNATE THAT WE LIVE IN THE STATE OF TEXAS, IT'S LEGENDARY IN ITS PROTECTION OF PROPERTY RIGHTS OF THOSE CITIZENS WHO OWN PROPERTY.

WHAT DOES THAT MEAN? WELL, IT MEANS THAT THE GOVERNMENT, NOT THE STATE, NOT THE CITY, CAN PASS REGULATION REGULATIONS -- NO GOVERNMENT CAN PASS REGULATIONS THAT RESTRICT YOUR PROPERTY RIGHTS UNLESS THEY ARE PROTECTING PUBLIC SAFETY AND HEALTH.

HOW DOES THAT RELATE TO STR REGULATIONS THAT WE'RE CONSIDERING TODAY? THE CITY COUNCIL CAN PASS ORDINANCES THAT RESTRICTS PROPERTY RIGHTS OF OWNERS AS LONG AS THEY ARE REASONABLE AND PROTECTS PUBLIC HEALTH AND SAFETY.

AND, AGAIN, FOR MORE THAN A YEAR, THIS COMMUNITY HAS ENGAGED IN A THOROUGH DEBATE ON ALL THE ISSUES RELATING TO STRS.

WE HAVE LOOKED AT ALL OF THE CITIES AND MORE IMPORTANTLY, WE HAVE LOOKED AT AND SPOKEN WITH OUR OWN NEIGHBORHOODS, WITH CITY STAFF, AND THEY HAVE DONE CONSIDERABLE RESEARCH AND GIVEN US GOOD INFORMATION AND DATA, AS I MENTIONED WORKING WITH MIKE SHANNON AND HIS STAFF ON SOME GREAT EXAMPLES.

AND I WANT TO POINT OUT A LOT OF THE KEY PROVISIONS THAT MIKE LAID OUT, THE SELF-CERTIFICATION, THE REDUCED FEES, THE CITY HOUSING

[01:35:01]

INCENTIVES, EVENTS AND OTHER USES, IT IS ALL SOMETHING THAT REALLY KIND OF CAME OUT, WE DEVELOPED THROUGH THIS CONVERSATION AND THROUGH OUR PROCESS.

SO I'M -- AGAIN, I'M VERY GRATEFUL FOR THAT.

OF COURSE, WE KNOW THE SHARING ECONOMY IS HERE, AND WE WANT TO WORK THROUGH THIS.

SO LET US CONTINUE TO EMBRACE THE SHARING ECONOMY AND WE CAN ACCEPT IT AND REGULATE IT TODAY AS WE THINK BEST.

I DO SUPPORT STRS, BOTH TYPE 1 AND TYPE 2; AT THE SAME TIME, I WANT TO PROTECT OUR NEIGHBORHOODS AND PRESERVE THEIR CHARACTER AND CULTURE.

I'M GOING TO REPEAT THAT.

I WANT TO PROTECT OUR NEIGHBORHOODS AND PRESERVE THEIR CHARACTER AND CULTURE.

HOW DO WE DO THAT? AS OUTLINED TYPE 1 NEIGHBORHOODS WILL BE PROTECTED BECAUSE THE OWNER -- NUMBER OF STRS IN A BLOCK AS WAS PRESENTED.

WHY SHOULD WE DO THAT IN ORDER TO PROTECT NEIGHBORHOODS, RIGHT? WHAT IS A NEIGHBORHOOD? WELL, AS WAS OUTLINED, IT WOULD MEAN THAT 12.5% OF STRS ON A BLOCK MIGHT THREATEN A NEIGHBORHOOD.

THAT NUMBER IS PRETTY SPECIFIC.

BASICALLY MEANS ONE PIECE OF THAT BLOCK.

I THINK IT'S CRITICAL TO POINT OUT THESE BLOCKS ARE CERTAINLY SEEING AN INFLUX OF STRS, TYPE 2S, AND SO LIMITING OR CREATING A DENSITY CLAUSE, I THINK, HELPS TO PROTECT THE NATURE AND CHARACTER OF THESE NEIGHBORHOODS.

AND I THINK SOMEBODY SAID IT REALLY BEST, YOU KNOW, WE WANT OUR NEIGHBORS, WE WANT TO HAVE NEIGHBORS, WE WANT TO GET TO KNOW OUR NEIGHBORS, THAT'S WHAT MAKES OUR CITY [INDISCERNIBLE].

WE DON'T WANT SIMPLY TO HAVE RESIDENTS IN OUR NEIGHBORHOODS, WE WANT TO HAVE PEOPLE TO HAVE THE OPPORTUNITY TO BE FRIENDS WITH ONE ANOTHER, PEOPLE TO GET TO KNOW ONE ANOTHER, RELY ON ONE ANOTHER, HAVE THE PLEASURE OF BEING AROUND OTHERS.

THESE ARE SOME OF THE COMMENTS I'VE HEARD THROUGHOUT THIS ENTIRE PROCESS.

SO THAT IS ESSENTIALLY WHY WE MUST LIMIT TYPE 2 STRS.

12.5% OF THE BLOCK FACE.

WE MUST PRESERVE THE COMMUNITY OF EACH NEIGHBORHOOD ENSURING THAT A LARGE PROPORTION OF THE RESIDENTS WILL MAKE UP THAT COMMUNITY.

I ALSO WANT TO POINT OUT THAT THIS IS ONGOING.

I WOULD ALSO LIKE THERE TO BE A REVIEW OF THE DENSITY LIMITATIONS FOR TYPE 2 RENTALS IN NONRESIDENTIAL AREAS.

TAKING BACK TO A COUNCIL COMMITTEE, AND POTENTIALLY COME BACK WITH POTENTIAL AMENDMENTS OR PROPOSALS WITHIN THE NEXT THREE MONTHS.

THIS IS FOR NONRESIDENTIAL AREAS ONLY.

AGAIN, AT THE HEART OF THIS ISSUE IS KNOWING THAT, YOU KNOW, THE CITY IS TRYING TO WORK IN A SOLUTION.

IT DID IT COLLABORATIVELY, IT DID IT WITH AN AMAZING TASK FORCE THAT WAS VERY, VERY ENGAGED AND MANY NEIGHBORHOODS WHO REALLY HELPED PROVIDE A LOT OF INPUT IN GIVING US SOME OF THAT FEEDBACK.

AT THIS TIME, I WOULD LIKE TO MOTION FOR THE APPROVAL OF ITEM NUMBER FOUR AS PRESENTED.

>> MAYOR NIRENBERG: THERE'S A MOTION AND A SECOND FOR APPROVAL OF ITEM NUMBER FOUR.

COUNCILMAN COURAGE?

>> COURAGE: THANK YOU, MAYOR.

I'D LIKE TO BEGIN BY SAYING I APPRECIATE THE SUPPORT FOR THE SUGGESTED ORDINANCE THAT WAS EXPRESSED BY SEVERAL -- ACTUALLY SO MANY SPEAKERS TODAY.

I UNDERSTAND THEIR FEAR [INDISCERNIBLE] OF STRS WILL SIMPLY DESTROY MANY OF THEIR NEIGHBORHOODS, AND I BELIEVE THAT'S THE GREATEST MOTIVATION FOR MANY OF THEM COMING TODAY AND SAY, WELL, IT'S NOT PERFECT BUT WE'LL ACCEPT IT.

AND I BELIEVE MANY OTHERS WOULD PREFER THERE BE GREATER RESTRICTIONS ON THE PROPOSAL.

AND I'M ONE THAT BELIEVES THAT WAY.

I THINK THAT THIS PROPOSAL CAN STILL BE APPROVED TODAY, BUT I THINK IT NEEDS TO BE AMENDED, AND I INTEND ON PROPOSING AN AMENDMENT, BUT FIRST I'D LIKE TO PUT INTO THE RECORD A COMMUNICATION I RECEIVED FROM A RESIDENT IN SAN ANTONIO.

SEVERAL COUNCILMEMBERS MAY HAVE RECEIVED THIS.

AND IT SAYS HONORABLE MAYOR RON NIRENBERG, CITY COUNCIL REPRESENTATIVES, CITY OF SAN ANTONIO, REFERENCE CITY COUNCIL A SESSION, NOVEMBER 1ST, 2018, CONSIDERATION OF THE PROPOSED SHORT TERM RENTAL ORDINANCE.

I WOULD LIKE TO PLEAD ON BEHALF OF MY NEIGHBORHOOD THAT THE MAYOR AND CITY COUNCIL DURING THE CONSIDERATION OF SHORT TERM

[01:40:02]

RENTAL ORDINANCE FOR APPROVAL, THAT YOU CONSIDER THE FOLLOWING THE PROPOSED STR ORDINANCE IS NOT ADHERING TO THE NATIONWIDE BEST PRACTICES REGARDING REGULATORY CONTROL OF TYPE 2 SHORT TERM RENTALS BY MANY OTHER MAJOR CITIES THAT HAVE ENACTED THEIR CODES AND ORDINANCES AND HAD GENERALLY PROHIBITED TYPE 2 STRS IN RESIDENTIAL DISTRICTS EXCEPT -- EXCEPT BY SPECIAL EXCEPTION.

I DON'T HAVE A COPY OF IT HERE.

BUT IT GOES ON TO SAY, THEREFORE, IF THE CURRENTLY PROPOSED DRAFT SHORT-TERM RENTAL ORDINANCE ALLOWING 12.5% OF HOMES IN ANY ZONING DISTRICT BY RIGHT TO BE USED AS TYPE 2 STRS FULL-TIME YEAR-ROUND VACATION HOMES WITHOUT OWNER IN RESIDENCE IS ENACTED, IT IS BOUND TO HAVE A LONG-TERM PROGRESSIVELY DETRIMENTAL IMPACT ON THE QUALITY OF LIFE IN RESIDENTIAL DISTRICTS FOR YEARS TO COME, PARTICULARLY IN SINGLE FAMILY, OLDER, MODERATE-INCOME AFFORDABLE-HOME TYPE NEIGHBORHOODS THAT ARE NOT PRO TEBLGHTED BY THE -- PROTECTED BY THE YEURNLLY RESTRICTIVE COVENANTS MANDATORY FTAS.

THE PROPOSED STR ORDINANCE ALSO DOES NOT FOLLOW THE FUNDAMENTAL ASPECT OF THE NATIONAL BEST PRACTICES OF OTHER MAJOR CITIES WHICH IS ADOPTING THE NATIONWIDE BEST PRACTICES TO THE UNIQUE LOCAL NEEDS, WHICH RECOGNIZE THE IMPACT AND BENEFITS OF TYPE 2 STRS ACCORDING TO INDIVIDUAL DISTRICTS; WHERE THEIR OPERATIONS VIA REVITALIZATION ARE VERY DESIRABLE, WHERE THEY FIT IN OR COMPLIMENT THE DISTRICT.

IN THIS CONFIGURATION, IN DISTRESSED DISTRICTS, COMMERCIAL DISTRICTS, MIXED USE DISTRICTS, DESIGNATED SPECIAL DISTRICTS, AND BY SPECIAL EXCEPTION ONLY IN RESIDENTIAL DISTRICTS RESPECTIVELY, THIS IS DONE.

DOING THIS IN A PROACTIVE STANCE BASED ON THE BEST PRACTICES EXAMPLES OF OTHER CITIES PREVENTING PROBLEMS FROM OCCURRING BY ESTABLISHING THE APPROPRIATE REGULATORY CONTROLS BEFOREHAND, SUCH AS EXCESSIVE LOSS OF AFFORDABLE HOUSING STOCK VIA STRS.

IN THIS CONTEXT, THE 12.5% ALLOWABLE RATE IN ANY DISTRICT FOR TYPE 2 STRS IS A TOTAL IRREGULARITY IN COMPARISON WITH THE NATIONWIDE BEST PRACTICES OF OTHER MAJOR CITIES WHICH GENERALLY REGARD TYPE 2 STRS AS INCOMPATIBLE WITH RESIDENTIAL DISTRICTS.

NOT ONLY IN TERMS OF THE ALLOWABLE RATE, BUT ALSO IN THE VERY LARGE SCOPE OF OPERATIONS AND THE HUGE IMPACT THAT IT IS BOUND TO HAVE ON SINGLE-FAMILY RESIDENTIAL DISTRICTS.

FOR EXAMPLE, BASED ON THIS ALLOWABLE RATE, A SUBDIVISION OF APPROXIMATELY 1,000 HOMES COULD HAVE 125 HOMES USED AS TYPE 2 STR VACATION HOMES, AND GIVEN THAT EACH TYPE 2 STR USUALLY ADJOINS AND IS IMMEDIATELY IN PROXIMITY TO SIX HOMES, THAT MEANS APPROXIMATELY 750 HOMES COULD BE IMPACTED BY THE ACTIVITIES OF TYPE 2 STRS IN SUCH AN AREA WHICH IS CONSIDERED INCOMPATIBLE WITH RESIDENTIAL DISTRICTS.

THE NUMBERS FOR ALL SAN ANTONIO WOULD BE APPROXIMATELY 61,000 HOMES AT 12.5%.

POTENTIALLY USED AS TYPE 2 STRS AMONG THE 366,000 HOMES IN RESIDENTIAL NEIGHBORHOODS THAT WOULD BE IMPACTED.

WITH REGARD TO THE PRECEDING, HAS THE MAYOR AND THE CITY COUNCIL TAKEN FULLY INTO ACCOUNT THIS HUGE IMPACT? WOULDN'T THIS MAKE IT [INDISCERNIBLE] THAT THE CONSTITUENCY IN EACH CITY COUNCIL DISTRICT WAS APPROPRIATELY INFORMED ABOUT THE STR ORDINANCE EFFICIENT EXPLANATION OF ITS OBJECTIVES AND GIVEN THE OPPORTUNITY TO PARTICIPATE IN RELATED PROCESS? I MIGHT INTERJECT HERE THIS GENTLEMAN LIVES IN DISTRICT 8.

APPARENTLY DOESN'T FEEL HE WAS ADEQUATELY INFORMED.

IT APPEARS THAT UP TO THIS POINT IN TIME, THE MAJORITY OF RESIDENTS KNOW VERY LITTLE, IF ANYTHING, ABOUT THE STR

[01:45:02]

ORDINANCE PROCEEDINGS THAT HAVE BEEN GOING ON FOR OVER A YEAR AND A HALF.

AND ABOUT THE POTENTIAL IMPACT THAT IT IS BOUND TO HAVE ON THEIR RESIDENTIAL NEIGHBORHOODS.

NOW, IT IS RESPONSIBLE FOR US TO HELP PEOPLE UNDERSTAND THE INHERENT RESPONSIBILITIES.

CONSEQUENTLY DUE TO THE SIGNIFICANCE OF THIS ORDINANCE, AS WELL AS IN CONSIDERATION OF THE INHERENT OBLIGATIONS OF ELECTED PUBLIC OFFICIALS, AND THE APPROPRIATE PERFORMANCE OF PUBLIC EMPLOYEES, IT IS APPARENT THAT THE MAYOR AND CITY COUNCIL SHOULD ENSURE THAT THE ENTIRE PROCESS DID INDEED ORIENT ITSELF TOWARDS MEETING THE OPTIMUM IN TERMS OF STANDARDS OF PERFORMANCE AS WELL AS WITH REGARD TO PERSONAL CONDUCT ACCORDING TO THE CITY CHARTER CODE OF ETHICS.

IN THIS CONTEXT, ASCERTAINING AND ENSURING THE FOLLOWING: THAT THE STR ORDINANCE DID, IN FACT, TAKE INTO FULL CONSIDERATION THE VALUING AND PROTECTING NEIGHBORHOODS AND THE BEST INTEREST OF THE IMPACTED RESIDENTS IN ALL DISTRICTS BY LISTENING TO THEIR CONCERNS AND USING THE CITY'S ZONING POWERS.

WITH REGARD TO MINIMIZING ANY POTENTIALLY ADVERSE IMPACTS OF TYPE 2 STRS ON RESIDENTIAL SINGLE-FAMILY NEIGHBORHOODS IN A MANNER SIMILAR TO THAT OF OTHER MAJOR CITIES THAT HAVE ENACTED STR REGULATORY CONTROLS THROUGH ADOPTING THE NATIONWIDE BEST PRACTICES TO THE UNIQUE LOCAL NEEDS.

ENSURE THAT THE STR PROCEEDINGS HAVE NOT BEEN FLAWED OR HAVE NOT GIVEN THE APPEARANCE OF BEING FLAWED IN TERMS OF OUR COSA CITY CHARTER.

NOW, IN THAT, HE CITES WITH REGARD TO TRANSPARENCY AND ACCOUNTABILITY AND SCRUPULOUS AVOIDANCE OF IMPROPRIETY AT ALL TIMES.

DO WE ENSURE THAT THE STR PROCEEDINGS DID INDEED INCLUDE AT LEAST A REASONABLE LEVEL OF PUBLIC ENGAGEMENT BEFITTING AN ACT OF AN ORDINANCE WITH THIS HIGH DEGREE OF IMPACT ON NEIGHBORHOODS IN ALL DISTRICTS CITYWIDE? I'LL INTERJECT HERE, THERE WAS NO CITY PUBLIC HEARING ON THIS IN MY DISTRICT.

THIS SHOULD BE A MATTER OF CONCERN AS UP TO THIS POINT IN TIME MANY RESIDENTS KNOW VERY LITTLE OR ABSOLUTELY NOTHING ABOUT THE STR ORDINANCE AND HOW IT MAY IMPACT THEIR NEIGHBORHOODS.

THIS MAY APPLY TO SOME IN THIS E-MAIL EXCHANGE, WHICH ALSO INCLUDES OVER 100 OTHER RECIPIENTS THAT THIS WAS SENT TO.

THE REASON FOR THE VERY LOW PARTICIPATION IN THE VARIOUS PROCEEDINGS AND THE LOW LEVELS OF CONTACTS BY CONCERNED RESIDENTS IS BECAUSE UP TO THIS POINT IN TIME THERE HAS NOT BEEN A WIDE-SCALE COMPREHENSIVE PUBLICITY AND EXPLANATION OF THE ISSUES RELATED TO STRS PROVIDED TO THE PUBLIC, PARTICULARLY WITH REGARD TO TYPE 2 STRS WHICH ELICIT THE STRONGEST LEVELS OF CONCERNS.

THERE HAS ALSO BEEN NO WIDE-SCALE NOTICES AND PUBLICITIES OF THE MEETINGS WITH ACCOMPANYING EXPLANATIONS EXCEPT FOR THE RECENT NOTICES OF THE STR MEETINGS IN WHICH THE LAST FEW MONTHS ON NEXT DOOR, BUT WHICH DIDN'T PROVIDE ANY EXPLANATION ON WHAT THE ISSUES WERE ALL ABOUT.

PEOPLE WILL GENERALLY NOT GET INVOLVED IN ISSUES THAT THEY KNOW VERY LITTLE, IF ANYTHING, ABOUT.

THIS MAY VARY BETWEEN CITY COUNCIL DISTRICTS AS SOME DISTRICTS HAVE PUBLICIZED THE NOTICES OF MEETINGS IN THEIR MONTHLY NEWSLETTERS, WHICH I HAVE DONE, AND HELD STR-RELATED MEETINGS, WHICH I HAVE DONE.

THE CITY NOTICES POSTED ON NEXT DOOR IN RECENT MONTHS DID NOT INCLUDE ANY EXPLANATIONS OR AGENDAS.

FOR THE ANNOUNCED STR MEETING, THIS IS SHOWN IN THE LATEST NOTICE ON NEXT DOOR REGARDING THE UPCOMING CITY COUNCIL A SESSION, NOVEMBER 1ST.

EXAMINING THE ALLEGATIONS MADE IN THIS DOCUMENT DUE TO THEIR SERIOUSNESS.

DOING THIS IN SUFFICIENTLY REASONABLE DEPTH AND BEING OPEN-MINDED AND FAIR IN THE PROCESS, THE ALLEGATIONS CONCERNING THE NATIONWIDE BEST PRACTICES AND TYPICAL ISSUES CONCERNING THE ADVERSE IMPACT OF STRS CAN BE EASILY CORROBORATED VIA REVIEW OF THE PERTINENT OFFICIAL DOCUMENTS FROM OTHER CITIES.

I HAVE ADDRESSED AND SUMMARIZED THE ISSUES REGARDING THE POSSIBLE ETHICAL LAPSES IN MY WRITTEN COMMENTS UNDER THE CAPTION "ISSUES AND CONCERNS," WHICH I SUBMITTED TO DSD STR

[01:50:04]

GENERAL MEETING AND BOARD OF ADJUSTMENT AND PLANNING AND ZONING COMMISSION REVIEWS OPEN TO THE PUBLIC.

>> MAYOR NIRENBERG: COUNCILMAN, DO YOU HAVE THE LETTER WE CAN PLACE INTO THE RECORD WE CAN GET INTO YOUR COMMENTS?

>> COURAGE: NO, I DON'T.

IT'S ONLY IN MY --

>> MAYOR NIRENBERG: IF YOU COULD FORWARD THAT TO THE CLERK, AND WE CAN PUT IT IN THE RECORD.

WE NEED YOU TO EXPEDITE YOUR COMMENTS SO OTHER COUNCILMANS CAN SPEAK ON THAT.

>> COURAGE: I OBJECT, MAYOR.

I WOULD LIKE TO MAKE SURE THIS IS COMPLETELY IN THE RECORD AND NOT JUST PUT IN A FILE SOMEWHERE.

>> MAYOR NIRENBERG: IT WILL BE PLACED IN THE RECORD BY THE CLERK IF YOU FORWARD THE --

>> COURAGE: YES, BUT NO ONE WILL BE ABLE TO SEE IT BEFORE WE VOTE ON IT AS THEY DID BEFORE THE PEOPLE.

>> MAYOR NIRENBERG: GO AHEAD AND FINISH THE LETTER.

>> COURAGE: IT IS A VERY LONG LETTER BUT IT MAKES VERY RELEVANT I THINK THE COUNCILMEMBERS NEED TO BE CONSIDERING BEFORE THEY MAKE THIS VOTE TODAY.

SO ADDITIONAL EXPLANATIONS, SUPPORTING INFORMATION AND ISSUES: VALUING NEIGHBORHOODS.

NEIGHBORHOODS ARE A MATTER OF THE HEART.

MANY ASPIRE TO LIVE IN A QUIET, SAFE AND ATTRACTIVE NEIGHBORHOOD WITH GOOD NEIGHBORS NEARBY WHO LOOK OUT FOR EACH OTHER, NEXT TO FAMILY AND FRIENDS FOR MOST THE NEIGHBORHOOD IS THE MOST IMPORTANT PART OF THEIR LIVES.

THIS IS WHERE WE RAISE FAMILIES, SEE OUR CHILDREN GROW, MAKE LIFETIME FRIENDS AND SPEND THE GREATER PART OF OUR LIVES WORKING AND PURSUING OUR DREAMS IN THE SENSE OF THE PURSUIT OF HAPPINESS.

EQUAL CONSTITUTIONAL RIGHT, WHICH GOVERNMENT IS RESPONSIBLE TO PROTECT.

IN THIS CASE, THE LOCAL GOVERNMENT ENFORCING ZONING POWERS.

CARING PEOPLE ARE PASSIONATE ABOUT THEIR NEIGHBORHOOD AND PROTECTING THEM FROM ANY ADVERSE IMPACT.

MANY WORK HARD AND INVEST THEIR LIFE SAVINGS IN THEIR HOMES, AND WHEN THEY PURCHASE A HOME IN A NEIGHBORHOOD, A RESIDENTIAL ZONING DISTRICT ZONED FOR SINGLE-FAMILY PROPERTY USE, THEY EXPECT THAT THE ZONING CODE, LAWFUL USE OF THE PROPERTY, WILL BE ENFORCED, PROTECTED BY THE CITY AND THAT THE DISTRICTS' PROPERTY USE WILL BE GRANDFATHERED AND NOT THE RIGHTS OF INVESTORS IN ST RS AND MODIFIED ONLY BY SPECIAL EXCEPTION IN ACCORDING DANCE WITH THE CURRENT CODE WHEN THERE COULD BE A RESULTING BENEFIT TO THE NEIGHBORHOOD, RESTORATION OF A DISTRESSED STRUCTURE OR REVITALIZATION COULD BE A REASON FORCEP -- FOR EXCEPTION IN ACCORDANCE WITH THE CURRENT CODES OR WHEN THE PROPERTY COULD NOT BE USED OTHERWISE, OCCUPIED BY AN OWNER, RENTED OUT LONG-TERM OR SOLD.

GIVEN THE ABOVE, WHAT CAN BE MORE IMPORTANT FOR THE CITY GOVERNMENT TO VALUE THAN NEIGHBORHOODS? IN THIS REGARD RECOGNIZING AND BEING SENSITIVE TO THE MANY YEARS OF HARD WORK, PERSONAL SACRIFICE AND A LOT OF CARING OF MANY THAT IT TAKES TO BUILD AND PRESERVE GOOD AND ATTRACTIVE NEIGHBORHOODS FOR THE LONG TERM, PARTICULARLY THOSE THAT ARE DIVERSE AND AFFORDABLE, THESE CONSIDERATIONS ARE DESERVING OF UTMOST SENSITIVITY AND RESPECT AND NEED TO BE EXEMPLIFIED IN PROPOSED SHORT-TERM RENTAL ORDINANCES PROCEEDINGS.

>> MAYOR NIRENBERG: COUNCILMAN, I NEED TO ASK OUR ATTORNEY.

THERE IS A ROBERT'S RULES BEING INVOKED ABOUT A TIME LIMIT.

ANDY, CAN YOU SPEAK TO THAT.

>> YES, GENERALLY UNDER ROBERT'S RULES THERE'S A 10-MINUTE LIMIT ON PEOPLE WITHIN THE ORGANIZATION HERE AT THE COUNCIL TO SPEAK.

ALSO IN TERMS OF READING, THERE IS SOME CONCERN IN TERMS OF THE DURATION OF TIME IN THAT IF ITEMS ARE READ, IT COULD BE DEEMED TO BE SORT OF A FILIBUSTER, SO I WOULD MAKE THE COUNCILMAN AWARE OF THAT.

>> MAYOR NIRENBERG: COUNCIL, I'M GOING TO ASK YOU TO PLACE THE LETTER INTO THE RECORD.

CARRY ON WITH YOUR COMMENTS, IF NOT I'LL MOVE THE FLOOR TO THE NEXT PERSON SIGNED UP TO SPEAK.

>> COURAGE: OKAY.

MAYOR, I DISAGREE AND I WILL INVESTIGATE THE DECISION OF THE CITY ATTORNEY, BUT I WILL CONTINUE WITH MY STATEMENT.

I BELIEVE SHORT-TERM TYPE 2 RENTALS ADVERSELY AFFECT THE NATURE AND CHARACTER OF RESIDENTIAL NEIGHBORHOODS.

OUR ZONING CATEGORIES ALLOW FOR LIMITED HOME BUSINESSES IN CERTAIN RESIDENTIAL AREAS.

FOR EXAMPLE, IF SOMEBODY WANTS TO GO AHEAD AND HAVE ART LESSONS OR MUSIC LESSONS OR EVEN RUN A CPA BUSINESS OUT OF THEIR OFFICE IN THEIR NEIGHBORHOOD, THAT IS TOTALLY APPROPRIATE ACCORDING TO OUR CURRENT ZONING REQUIREMENTS.

[01:55:01]

ENTERPRISES IN RESIDENTIAL NEIGHBORHOODS.

NOT ONLY THAT, BUT IT REDUCES THE AVAILABILITY OF AFFORDABLE, WORKING FAMILY HOUSING, WHICH WAS THE MAIN EMPHASIS THAT THIS CITY HAS COMMITTED ITSELF TO THROUGH YOUR OWN HOUSING TASK FORCE BY CONVERTING SO MANY OF THESE PROPERTIES THAT COULD BE REVITALIZED FOR AN OWNER TO REMAIN, INSTEAD BEING SOLD TO BE TURNED INTO A MINI HOTEL IN A NEIGHBORHOOD, WE SEVERELY LIMIT THE AFFORDABILITY OF WORKING FAMILY HOUSING WITH TYPE 2 SHORT-TERM RENTALS.

IT ALSO CAUSES A DRAMATIC RISE IN TAX VALUES FOR ALL OF THE OTHER RESIDENTS WHO LIVE IN THE AFFECTED NEIGHBORHOODS.

IT ALSO REDUCES THE NUMBER OF STUDENTS TO ATTEND NEIGHBORHOOD PUBLIC SCHOOLS, LEADING TO LOSSES OF STATE FUNDING FOR SCHOOLS WHICH WILL RUN INTO THE MILLIONS OF DOLLARS.

FOR EXAMPLE, 1,000 SUCH HOMES WITHIN THE SAN ANTONIO INDEPENDENT SCHOOL DISTRICT, AND WE ALREADY KNOW OF 400 POTENTIALLY 2000 IN THIS CITY, PREDOMINANTLY IN THE DOWNTOWN AREA, 1,000 HOMES THAT USUALLY MAY HOLD A FAMILY WITH AT LEAST ONE OR TWO CHILDREN MEANS THAT THERE ARE ANYWHERE FROM 1500 TO 2,000 STUDENTS WHO WILL NO LONGER BE ATTENDING SCHOOLS IN PARTICULARLY THE SAN ANTONIO INDEPENDENT SCHOOL DISTRICTS.

WITH STATE FUNDING OF $6,000 PER SCHOOL -- PER STUDENT ANNUALLY, THAT CAN BE A LOSS OF NINE TO $12 MILLION TO THE SAN ANTONIO INDEPENDENT SCHOOL DISTRICT IN THE EDUCATIONAL FUNDING OVER THE NEXT COUPLE OF YEARS, ALTHOUGH THE CITY MIGHT GET A PRETTY GOOD HOT TAX OUT OF IT.

IS THAT A FAIR TRADE? AND THEY LOSE NOT JUST THE MONEY, BUT THE SCHOOLS LOSE THE COMMUNITY AROUND THEM THAT SUPPORT -- THAT GET SUPPORT FROM THOSE FAMILIES.

AND WHEN WE TALK ABOUT PROPERTY RIGHTS, WHICH WE HEAR FROM A LOT OF PEOPLE WHO ARE INTERESTED IN EITHER BUYING OR SELLING OR WHO DO OWN AND WANT TO TURN IT INTO A BUSINESS FOR PROFIT, WHAT ABOUT THE RIGHTS OF THE HOMEOWNERS WHO MOVED INTO THOSE NEIGHBORHOODS, WHO HAVE LIVED THERE BY CHOICE BECAUSE THEY WANTED THE BENEFIT OF HAVING A WELCOMING SAFE AND STABLE COMMUNITY FOR THEIR FAMILY AND TO RAISE THEIR CHILDREN? HOW MANY OF US WOULD LIKE TO COME HOME TO OUR NEIGHBOR TO FIND TOTAL STRANGERS GOING IN AND OUT OF THE HOUSE NEXT DOOR OR DOWN THE STREET THREE OR FOUR, FIVE TIMES A WEEK? WE WERE TALKING FOR A WHILE ABOUT THIS BEING A HOME SHARING ECONOMY.

TYPE 2 RENTALS ARE NOT HOME-SHARING.

NO ONE LIVES IN THAT HOUSE, NO ONE LIVES IN THAT NEIGHBORHOOD WHO OWNS THAT TYPE 2 RENTAL.

THEY'RE NOT SHARING A HOME, THEY ARE CREATING A BUSINESS ENTERPRISE IN A RESIDENTIAL AREA.

AND FOR THAT REASON, I WOULD LIKE TO PROPOSE AN AMENDMENT TO THE ORDINANCE AS PRESENTED.

MY AMENDMENT WOULD BE TO CHAPTER 35, SECTION THREE -- ARTICLE 3, SECTION THREE FIVE-11, IT'S A DAIBL IN THE ORDINANCE -- TABLE IN THE ORDINANCE, AND IN THAT TABLE IT SAYS SHORT-TERM RENTAL TYPE 1 AND SHORT-TERM RENTAL TYPE 2, AND I PROPOSE AMENDING THAT TO STRIKE "AND TYPE 2." THIS TABLE THE LISTED AS RESIDENTIAL USE TYPE MATRIX.

MY PROPOSAL IS TO STRIKE "TYPE "

>> MAYOR NIRENBERG: COUNCIL, CAN YOU PLACE YOUR AMENDMENT IN THE FORM OF A MOTION, PLEASE.

>> COURAGE: YES.

I'M SORRY I WASN'T CLEAR THAT'S WHAT I WAS DOING.

I MOVE TO STRIKE "TYPE TWO" FROM THE TABLE CALLED RESIDENTIAL USE MATRIX.

>> MAYOR NIRENBERG: ANDY, DO YOU HAVE A COMMENT.

>> SEGOVIA: AGAIN FOR THE SAKE OF CLARITY, I WOULD LIKE THE COUNCILMAN TO RESTATE HIS MOTION TO SAY HE'S MAKING A MOMENT TO AMEND THE ORDINANCE SO THAT TYPE 2 RENTALS ARE NOT ALLOWED IN RESIDENTIAL AREAS.

>> COURAGE: IN ESSENCE, YES, THAT'S WHAT I'M PROPOSING.

THAT'S MY MOTION.

>> MAYOR NIRENBERG: OKAY.

THERE'S A MOTION ON THE FLOOR.

IS THERE A SECOND? HEARING NONE, MOTION FAILS.

COUNCILMAN PELAEZ?

>> PELAEZ: THANKS.

I'VE GOT SOME QUESTIONS FOR YOU, MIKE, IF YOU DON'T MIND COMING UP HERE.

THANK YOU FOR THE HARD WORK YOU'VE PUT INTO THIS, MIKE.

I KNOW THAT -- I'VE SEEN YOU ACTUALLY DO A LOT OF THIS HARD WORK, AND YOU AND I HAVE MET A

[02:00:01]

NUMBER OF TIMES ON THIS, IT'S NOT JUST YOU, BUT IT'S AN ENTIRE TEAM OF FOLKS THAT YOU'VE BEEN WORKING ON.

I KEEP HEARING -- I KEEP GETTING E-MAILS FROM PEOPLE WITH THIS ASSERTION THAT SHORT-TERM RENTALS WILL NEGATIVELY IMPACT PROPERTY VALUES.

THE FIRST TIME YOU PRESENTED THIS AT B SESSION TO US, A LONG TIME AGO, I THINK IT WAS 2017 WHEN YOU DID THAT, WASN'T IT?

>> SHANNON: APRIL OF 2018, BUT THEY SEEM THAT WAY.

>> PELAEZ: I GAVE YOU SOME HOMEWORK AND I SAID, LISTEN, IF YOU FIND ANY OBJECTIVE DATA TO PROVE OUT THE ASSERTION THAT SHORT-TERM RENTALS NEGATIVELY IMPACT PROPERTY VALUES, PLEASE ALERT US.

HAVE YOU FOUND ANY OBJECTIVE DATA OUT THERE THAT BOLSTERS THAT ARGUMENT?

>> SHANNON: NO.

AGAIN, THE DATA STILL SUGGESTS THAT SHORT-TERM RENTALS WILL MAINTAIN OR ACTUALLY LIFT THE PROPERTY VALUESUE SLIGHTLY.

>> PELAEZ: OKAY.

>> SHANNON: THAT'S THE PUBLISHED DATA.

>> PELAEZ: ASIDE FROM SOME OF THE ANECDOTES AND, YOU KNOW, FORECASTED PARADE OF HORRIBLES THAT, YOU KNOW, WE GET BY WAY OF E-MAIL, HAVE YOU FOUND ANY OBJECTIVE DATA TO SUGGEST THAT SHORT-TERM RENTALS INCREASE CRIME RATES IN NEIGHBORHOODS?

>> SHANNON: NO.

WE REVIEWED THE ONES THAT WE KNOW ABOUT HERE IN SAN ANTONIO AND THERE'S NO MEASURABLE DIFFERENCE IN TERMS OF CRIME STATISTICS OR CODE ENFORCEMENT CASES OR ANYTHING LIKE THAT, SO...

>> PELAEZ: SO IN ORDER TO DEVELOP OUT THE PROPOSALS THAT YOU'VE PUT IN FRONT OF US, I IMAGINE THAT YOU MET WITH, YOU KNOW, VARIOUS GROUPS OF, YOU KNOW, INTERESTED PARTIES.

SO I'M ECHOING WHAT COUNCILMAN TREVINO SAID WHICH WAS, YOU KNOW, TEXAS LAW PROTECTS PRIVATE PROPERTY OWNERS.

YOU MET WITH THE PRIVATE PROPERTY OWNERS, YOU DIDN'T JUST -- YOU KNOW, THIS COMMITTEE AND THIS TASK FORCE WASN'T JUST PEOPLE WHO, YOU KNOW, WORK FOR THE STR COMPANIES, RIGHT?

>> SHANNON: NO.

IT WAS A VERY BALANCED TASK FORCE, AND ALSO OUR GENERAL PUBLIC MEETINGS -- YOU KNOW, WE HAD OVER 25 MEETINGS ON THIS THROUGHOUT A YEAR AND A HALF, AND IT WAS A LOT OF NEIGHBORHOOD, QUOTE, UNQUOD, LEADERSHIP, A LOT OF STR OPERATORS AND OWNERS AND DEVELOPER ORGANIZATIONS, AND THEY ALL GOT -- THEY ALL ARGUED AND DEBATED.

AND THIS BALANCED ORDINANCE IS WHAT WE CAME UP WITH.

>> PELAEZ: THANK YOU.

AND SO WHEN I USE THE WORDS PROPERTY OWNERS, I WANT TO MAKE SURE YOU AND I ARE ON THE SAME PAGE, I IMAGINE YOU CONSULTED WITH THE CITY ATTORNEY, A PROPERTY OWNER IS SIMPLY A PERSON THAT OWNS PROPERTY, NOT JUST A PERSON WHO LIVES IN THE NEIGHBORHOOD, RIGHT.

>> SHANNON: CORRECT.

>> PELAEZ: SO WHEN YOU MET WITH PROPERTY OWNERS, YOU DIDN'T JUST MEET WITH INVESTORS OR LANDLORDS, YOU ALSO MET WITH NEIGHBORHOOD LEADERS, RIGHT?

>> SHANNON: ABSOLUTELY.

YES.

>> PELAEZ: OKAY.

I JUST WANT TO MAKE SURE ALSO, I HAD A VERY WELL ATTENDED TOWN HALL IN DISTRICT 8 WHERE YOU AND YOUR TEAM GOT TO SHOW UP.

IF I REMEMBER CORRECTLY, IT WAS -- WE SPENT A LOT OF TIME WITH THE LEADERS OF THE HOMEOWNERS ASSOCIATIONS IN MY DISTRICT TALKING EXCLUSIVELY ABOUT THIS ONE TOPIC, RIGHT?

>> SHANNON: CORRECT.

>> PELAEZ: YEAH.

AND I THINK WE WERE THERE FOR ABOUT TWO HOURS AND THERE WAS A HEALTHY EXCHANGE BETWEEN YOUR TEAM, MY TEAM AND HOMEOWNERS, RIGHT?

>> SHANNON: CORRECT.

WE ANSWERED A LOT OF QUESTIONS AND WE WENT THROUGH REALLY THE ORDINANCE THAT'S PROPOSED THERE.

>> PELAEZ: SO WITHOUT HAVING TO FILIBUSTER MY WAY OUT OF THE ACCUSATIONS THAT WERE JUST PASSED AGAINST ME, I TAKE EXCEPTION TO ANYBODY SUGGESTING THAT MY TEAM HASN'T ENGAGED OR CONDUCTED OUTREACH WITH MY CONSTITUENTS, SO NOBODY ON THIS DAIS OWNS THE MONOPOLY ON OUTREACH AND ENGAGEMENT.

WE'VE SPOKEN TO HUNDREDS OF PEOPLE WHO HAVE SHOWN UP TO MULTIPLE OF OUR TOWN HALLS, SO WHEN SOMEBODY SAYS, WELL, I DID, I DID, I MET, I SPOKE, IT ALMOST SOUNDS LIKE THEY'RE SUGGESTING THAT NONE OF US DID.

AND SO JUST -- YOU KNOW, WHILE WE'RE PUTTING THINGS ON THE RECORD, RIGHT, I THINK IT'S IMPORTANT THAT NOBODY FORGET THAT SOMEHOW YOU MANAGED TO SNEAK INTO DISTRICT 8 AND HAVE A MEETING THAT NOBODY ELSE NOTICED ABOUT, OKAY? SO WITH THAT, I WILL TELL YOU -- YOU KNOW, AND THANKS, MIKE, FOR HANGING OUT WITH US UP THERE.

SHORT-TERM RENTALS ARE HERE, AND WHETHER ANY OF US LIKE IT OR NOT, IT'S THE SHARING ECONOMY IS NOT GOING ANYWHERE, IT'S HERE.

YOU KNOW, AND FOR ALL OF US THAT WISH THAT THERE WERE NO UBERS, THEY'RE HERE.

FOR ALL OF US WISH THAT LYFT AND AIRBNB AND HOME AWAY AND BRBO ARE SOMEHOW GOING TO GO AWAY AND THAT SOMEHOW CITY COUNCIL HAS THE POWER TO, YOU KNOW, MAKE THESE THINGS DISAPPEAR, WE DON'T.

AND I THINK THAT HARBORING THE HOPE -- I THINK IT'S AN UNREASONABLE HOPE, HARBORING THE

[02:05:01]

HOPE THAT SOMEHOW CITY COUNCIL IS GOING TO ERADICATE AN ENTIRE INDUSTRY WHICH IS NOW A PHENOMENON THAT WE'RE SEEING IN EVERY MAJOR CITY IN THE UNITED STATES, I THINK THAT'S FANTASICAL, YOU KNOW, AND I LIVE IN THE REAL WORLD.

SO WHAT IS A CITY COUNCIL PERSON TO DO WHEN THEY ARE MET WITH COMPETING INTERESTS OF DUALING PROPERTY OWNERS? WELL, THE ONLY THING THAT YOU CAN DO IS TRY TO WORK YOUR WAY THROUGH IT AND BALANCE EXPECTATIONS AND BALANCE COMPETING INTERESTS.

I BELIEVE THAT, MIKE, YOU AND YOUR TEAM HAVE COME UP WITH THE LEAST IMPERFECT OPTIONS FOR US, BECAUSE THAT'S THE ONLY THING AVAILABLE TO US IS IMPERFECTION IN TRYING TO DEAL WITH, YOU KNOW, -- WITH A COMPETING INTEREST SITUATION.

I THINK YOUR PROPOSAL IS VERY THOUGHTFUL.

I THINK THAT -- I KNOW FOR A FACT THAT EVERYBODY ON THIS DAIS HAS BEEN ENGAGING THEIR CONSTITUENTS, AND ANYBODY WHO SUGGESTS OTHERWISE IS MISINFORMED OR TRYING TO MISINFORM YOU, WHICH IS WHY I'M GOING TO BE SUPPORTING TODAY'S MOTION.

THANK YOU MR. TREVINO FOR MOTIONING AND THANK YOU MR. PERRY FOR ALLOWING THIS MOTION TO EXIST BY WAY OF YOUR SECOND.

THANK YOU.

>> MAYOR PRO TEM: THANK YOU, COUNCILMAN.

COUNCILMEMBER VIAGRAN IN.

>> VIAGRAN: THANK YOU.

I -- MIKE AND TEAM, I'M GRATEFUL FOR YOUR WORK.

I'M GRATEFUL FOR THE DIALOGUE AND THE CONTINUED CONVERSATION THAT WE'VE HAD FOR MANY YEARS, AND I HAVE TO FOR THE RECORD THANK MY COUNCIL COLLEAGUE MIKE GALLAGHER -- OR FORMER COUNCIL COLLEAGUE MIKE GALLAGHER, I'M SURE HE'S LOVING THIS RIGHT NOW, SO I'M GRATEFUL FOR HIM AND ALL OF HIS WORK.

AND HE DID BRING THIS FORWARD BECAUSE IT WAS A CONCERN OF HIS CONSTITUENTS IN HIS COMMUNITY.

I, TOO, THANK YOU, COUNCILMAN PELAEZ FOR YOUR WORDS BECAUSE I KNOW MY RESIDENTS HAVE BEEN VERY ENGAGED IN THIS STR CONVERSATION BECAUSE OF THE TRANSITION THAT IS HAPPENING WITH IN AND AROUND DISTRICT 3, AND IN AND AROUND THE MISSIONS AS IT COMES CLOSER TO OUR MISSION REACH.

WE SEE THIS HAPPENING, AND WE ALSO HAVE A LARGE NUMBER OF RESIDENTS WHO ARE LEGACY HOMEOWNERS, WHO BECAUSE OF THE IMPROVEMENTS THAT ARE NOW COMING, THAT THEY'RE SEEING A TRANSITIONING HAPPENING.

BUT WE WANT TO MAKE SURE THAT WE KEEP THAT AUTHENTIC CHARACTER AND NATURE OF OUR AREA, OF OUR NEIGHBORHOODS, WHICH IS EXTREMELY IMPORTANT FOR US.

SO I WANT TO THANK ALL OF THE MEMBERS OF THE COMMITTEES WHO HAVE DIALOGUED AND WHO HAVE, YOU KNOW, HAD TO GO BACK AND FORTH, HAD TO COMPROMISE.

AND THANK YOU FOR YOUR CONVERSATIONS AND YOUR REMARKS, BECAUSE I CONTINUE THINK THIS IS PERFECT -- DON'T THINK THIS IS PERFECT, BUT I THINK IT'S IMPORTANT THAT WE MAKE A MOVE FORWARD, ESPECIALLY BECAUSE WE DO NOT KNOW WHAT THE TEXAS LEGISLATURE IS GOING TO BE DOING.

SO ON THAT NOTE, I DON'T KNOW IF SOMEBODY FROM -- IF CARLOS OR SOMEBODY FROM IGR IS HERE WHO CAN ANSWER ABOUT FORECAST OF WHERE WE SEE THIS CONVERSATION AT A STATE LEVEL IN THE STATE LEGISLATURE PROCESS, OR, MIKE, YOU CAN DO IT, TOO.

>> SHANNON: I'LL JUST ADD, WE'VE WORKED WITH JEFF AND HIS TEAM.

WE FULLY EXPECT THAT THERE BE A PROPOSAL OF SOME SORT.

I WOULD LIKE TO ADD, THOUGH, WE DID GET A LETTER OF SUPPORT FROM AIR AIRBNB AND HOME AWAY ON THIS ORDINANCE THIS WEEK.

THEY'RE SUPPORTIVE OF THIS BALANCED REGULATION.

WE HOPE THIS IS THE MODEL ORDINANCE THAT WE CAN SHOW AS REASONABLE BALANCED APPROACH TO THE STATE LEVEL THAT PROTECTS THE COMMUNITY BUT ALSO ALLOWS THE INITIATIVE TO HAPPEN.

>> VIAGRAN: THANK YOU.

>> SHANNON: WE EXPECT WE'LL BE DEBATING AT THE STATE LEVEL.

>> VIAGRAN: THANK YOU VERY MUCH.

I THINK, CARLOS, PART OF THIS CONVERSATION WE'LL HAVE IN THE STATE LEVEL IS STILL ABOUT LOCAL CONTROL AND HOW THE CITY CAN PUT SOMETHING TOGETHER, AN ORDINANCE TOGETHER THAT MEETS THE NEEDS OF THE LOCAL COMMUNITY; IS THAT CORRECT?

>> THAT'S CORRECT, COUNCILWOMAN.

THERE WERE LEGISLATIVE EFFORTS LAST SESSION TO PREEMPT LOCAL REGULATION, SO WE ANTICIPATE THAT WILL LIKELY HAPPEN AGAIN THIS SESSION, SO IN THE CRAFTING OF AN ORDINANCE LOCALLY, OUR HOPE WOULD BE THIS COULD BE SOMETHING WE COULD SHOW TO A LEGISLATURE AS A MODEL AND REQUEST THE OPPORTUNITY TO HAVE OUR OWN ORDINANCE THAT'S SPECIFIC TO SAN ANTONIO.

>> VIAGRAN: THANK YOU VERY MUCH.

AND I THINK SAN ANTONIO HAS THE DIFFERENT HISTORIC DISTRICTS, THE DOWNTOWN, BUT THE ENTIRE AREA, SO I THINK THIS WILL BE A HIGH ITEM FOR OUR LEGISLATIVE AGENDA.

I DO WANT TO THANK -- AND THIS IS IMPORTANT BECAUSE WE WILL BE ABLE TO GO UP AND SHOW THAT SAN ANTONIO IS LEADING THE WAY ON THIS, BUT THERE IS GOING TO BE SOME FLEXIBILITY IN THIS FOR THOSE OWNER-OCCUPIED HOUSES.

[02:10:01]

IN PARTICULAR I WANT TO THANK THE NEIGHBORHOODS, MISSION SAN JOSE NEIGHBORHOOD ASSOCIATION, BUT ALSO THE NEIGHBORHOOD IN AND AROUND MISSION CONCEPCIÓN, IT'S A CURATIVE COLLABORATION THAT WE'RE GOING, WE'RE WORKING WITH THE NEIGHBORHOOD ASSOCIATION, THE CHURCH PARISH AND SOME HOMEOWNERS TO SEE WHAT WE CAN DO CREATIVELY TO WORK TOGETHER TO KEEP THOSE LEGACY HOMEOWNERS IN THEIR BUSINESS -- IN THEIR HOMES AND USING STR 1S AS A WAY TO PAY FOR THOSE APPRAISED VALUES OF THEIR HOUSES.

SO WE'RE LOOKING CREATIVELY TO SEE HOW WE CAN USE THIS KEEPING LEGACY HOMEOWNERS IN THEIR COMMUNITIES.

SO THANK YOU VERY MUCH, I KNOW MY RESIDENTS WERE GETTING INFORMATION THROUGH EBLAST, THROUGH NEIGHBORHOOD ASSOCIATION MEETING UPDATES, SO I'M LOOKING FORWARD TO MOVING THIS FORWARD AND HAVING THIS PROTECTION HERE BECAUSE IT DOES NOT EXIST RIGHT NOW.

THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN VIAGRAN.

COUNCILMAN PERRY? PEREZ THANK YOU, --

>> PERRY: THANK YOU.

WOW, ANOTHER BIG ISSUE HERE FOR SAN ANTONIO.

I WANT TO THANK MY PREDECESSOR COUNCILMAN GALLAGHER FOR BRINGING THIS UP.

BOY, HE KNEW WHEN TO LEAVE, RIGHT? [LAUGHTER]

>> PERRY: BUT, NO, IT HAS BEEN A LONG PROCESS AND I THINK EVERYBODY NEEDS TO REALIZE THAT.

I'M A LITTLE CONCERNED WHEN PART OF THAT E-MAIL BEING READ A WHILE AGO TALKING ABOUT NOT BEING NOTIFIED.

THAT REALLY CONCERNS ME.

I MEAN, THE NUMBER OF MEETINGS WE'VE HAD IN MY COMMUNITY AND OTHERS AROUND THE CITY, THE MEDIA ATTENTION, WHETHER IT WAS A NEWSPAPER, NEWS, YOU KNOW, I -- THAT JUST GETS ME THAT SOMEBODY SAYS THAT THEY DIDN'T KNOW ABOUT THIS OR THAT THEIR COMMUNITY DIDN'T KNOW THAT.

I -- THAT'S JUST BEYOND ME.

BUT, YOU KNOW, I GUESS THAT IS POSSIBLE THAT, YOU KNOW, IF YOU'RE CUT OFF FROM EVERYTHING, THAT YOU WOULDN'T KNOW ABOUT THIS.

BUT ANYWAY, THE OVERALL ISSUE, AGAIN, COMES DOWN TO PROPERTY RIGHTS.

AND I AM A VERY STRONG SUPPORTER OF PROPERTY RIGHTS, BUT I'M ALSO A VERY STRONG SUPPORTER OF OUR NEIGHBORHOODS, SO WHERE DO WE DRAW THE LINE HERE? I MEAN, WHAT'S GOVERNMENT'S ROLE IN KIND OF STRIKING THAT BALANCE? BUT I TOTALLY AGREE WITH COUNCILMAN TREVINO, COUNCILMAN PELAEZ, COUNCILWOMAN VIAGRAN, YOU KNOW, WE WERE PRESENTED WITH AN ISSUE HERE AND HOW DO YOU -- HOW DO YOU SOLVE THAT ISSUE? SHOULD THE GOVERNMENT GET INVOLVED? SHOULD THE GOVERNMENT JUST STAY OUT OF IT AND LET ENTERPRISE AND NEIGHBORHOODS AND WHAT HAVE YOU SORT IT OUT ON THEIR OWN, OR SHOULD THE GOVERNMENT GET INVOLVED AND TRY TO COME UP WITH RULES AND REGULATIONS AND ORDINANCES ON YOU WILL NOT OR THOU SHALT NOT DO THIS AND YOU SHALL NOT DO THAT, YOU KNOW, THAT'S A TOUGH ONE.

SO I THINK WE APPROACHED THIS THE CORRECT WAY, WE HAD MANY MEETINGS, NEIGHBORHOODS, TYPE 1 AND TYPE 2 OWNERS, AND SORTED THIS OUT.

AND AT THE END OF THE DAY, WE DO HAVE A PROPOSAL HERE.

ARE WE THERE? I'M NOT SURE THAT WE'RE THERE YET, BUT, AGAIN, THIS WAS BROUGHT TO US THAT IT'S LAYING AT OUR FEET RIGHT NOW.

ARE WE GOING TO DO SOMETHING ABOUT IT? AND I THINK WE SHOULD.

I THINK WE'RE AT SOME BALANCE RIGHT NOW, WHETHER IT'S THE RIGHT BALANCE OR NOT, I DON'T KNOW.

BUT THAT DOES NOT MEAN THAT WE CAN'T GO AND TWEAK THIS LATER ON, CHANGE IT LATER ON, GET RID OF IT TOTALLY? WE HAVE THAT OPTION AS WELL, FURTHER DOWN THE ROAD, BUT I THINK THIS IS WORTH A TRY AND TO SEE IF THIS WILL WORK AND MOVE ON.

SO HAVING SAID THAT, I DO HAVE A COUPLE OF QUESTIONS.

MIKE? AND THIS MIGHT NOT BE IN YOURS, I DON'T KNOW IF JEFF IS HERE OR IF SOMEONE COULD ANSWER IT, BUT WHAT -- DO WE EXPECT ANYTHING FROM THE STATE INVOLVEMENT ON THIS IN THIS NEXT LEGISLATIVE SESSION?

>> SHANNON: WELL, AGAIN, I THINK --

>> MAYOR NIRENBERG: MIKE, MAYBE I CAN ANSWER THAT, BECAUSE I HAD TALKED TO JEFF JUST A WEEK OR SO AGO, AND HE SAID THAT THERE IS AN INTENT FOR THE LEGISLATURE TO

[02:15:03]

DRAFT STATEWIDE ORDINANCE, BUT THEY ARE ACTUALLY INTERESTED IN WHAT SAN ANTONIO IS DOING TOPO TO POTENTIALLY MODEL A STATEWIDE LEGISLATION OFF.

AND CARLOS, YOU MAY HAVE ADDITIONAL INFORMATION ABOUT THAT, BUT THAT'S THE WORD WE'RE HEARING.

>> CONTRERAS: COUNCILMAN, MAYIER, WE DO ANTICIPATE THERE WILL BE AN EFFORT TO PASS LEGISLATION THAT WILL PREEMPT CITIES OR OCCUPY THE FIELDS.

THAT EFFORT OCCURRED LAST SESSION, IT DID NOT PASS.

WE WOULD HOPE TO GO UP AND DEFEND AN ORDINANCE TO TALK ABOUT THE UNIQUENESS OF OUR CITY AND IT'S TAILORED FOR THE CITY OF SAN ANTONIO.

>> SHANNON: BUT WE ANTICIPATE THERE WILL BE AN EFFORT TO PREEMPT CITIES.

NO QUESTION ABOUT IT.

>> MAYOR NIRENBERG: AND CARLOS, I WAS JUST RELATING THE CONVERSATION I HAD WITH JEFF COYLES, DIRECTOR OF OUR IGR, ABOUT WHAT KIND OF LEGISLATION MIGHT BE CONSIDERED BY THE STATE, AND HE REFLECTED TO ME THAT THERE ARE LEGISLATORS WHO ARE PUSHING THE ISSUE OF STRS THAT ARE VERY INTERESTED IN SAN ANTONIO'S ORDINANCE POTENTIALLY BECOMING A MODEL, WHICH IS NOT PRECEDENTED BECAUSE THEY DID THE SAME THING ESSENTIALLY WITH THEIR REGULATION OF RIDESHARE.

>> CONTRERAS: RIDESHARE, THOSE ALSO USE SAN ANTONIO'S ORDINANCES HAVE BEEN USED AS EXAMPLES, YES.

>> PERRY: OKAY.

GREAT.

THANK YOU, SIR.

THE OTHER QUESTION IS ARE WE GOING TO BE TAKING A LOOK AT GOING AFTER -- AND FOR LACK OF BETTER TERM -- BACKTAXES ON WHAT WE HAVE?

>> GOOD MORNING.

>> PERRY: HI, TROY.

>> IF AN STR IS OPERATING AND THEY DO HOT TAX AND WE BECOME AWARE WE WOULD CONTACT THAT STR AND WORK WITH THEM AND CONDUCT OUR DUE DILIGENCE AND CONNECT THE TAX.

IF WE BECOME AWARE THERE IS HOT TAX DUE, WE WILL WORK WITH THAT STR TO COLLECT THOSE TAX.

WE HAVE THE ABILITY TO GO BACK FOUR YEARS TO DO THAT.

>> PERRY: OKAY.

AND IS THERE ANY WAY TO COLLECT THAT OR GO, LET'S SAY, TO AIRBNB AND SAY, HEY, YOU OWE US THIS, OR... HOW DO WE GET INVOLVED WITH THOSE ORGANIZATIONS TO COLLECT THAT?

>> WE HAVE HAD VERY PRELIMINARY CONVERSATIONS WITH AIRBNB ABOUT WHAT IT WOULD TAKE TO DO THAT.

WE WERE ACTUALLY BRINGING A CONTRACT FORWARD FOR YOUR CONSIDERATION ON THE NOVEMBER 15TH, AND IT IS GOING TO BE WITH AN ORGANIZATION, THE ONE MIKE MENTIONED AS FAR AS THE COLLECTION TAX, THEY WILL ACTUALLY BE DOING A COMPLIANCE FUNCTION, GOING OUT AND IDENTIFYING STRS THAT ARE OPERATING, AND DETERMINING IF THEY ARE -- IF HOT TAX IS OWED.

WE ARE GOING TO WORK WITH THEM TO MAKE VAST IMPROVEMENTS OVER OUR CURRENT PROCESS TO ACTUALLY COLLECT AND REPORT YOUR HOT TAX AND REGISTER AS WELL.

SO THAT WILL BE THE APPROACH THAT WE'RE GOING TO BE RECOMMENDING TO START WITH, AND THEN AS IT MATURES, WE'LL START WORKING WITH THE STR PLATFORMS TO SEE IF WE CAN ENTER INTO CONTRACTS WITH THEM.

THE CHALLENGE THAT WE HAVE IS THAT THERE'S SO MANY PLATFORMS OPERATING WITH THE FIVE MAJOR ONES, THAT WE'D HAVE TO GO INTO CONTRACTS WITH EACH OF THOSE AND STANDARDIZE THOSE TERMS AND CONDITIONS.

SO WE'RE RECOMMENDING ON THE 15TH TO YOU-ALL TO START WITH THIS COMPANY, WITH A CONTRACT TO ACTUALLY PUT AN ONLINE PLATFORM SO WE CAN COLLECT THAT AND REPORT.

>> PERRY: OKAY.

WHAT -- OKAY.

SO YOU'RE LOOKING AT GOING AND WORKING WITH THIS -- THESE COMPANIES TO DEVELOP THAT?

>> NOT INITIALLY.

THE FIRST COMPANY THAT WE ARE GOING TO BE WORKING WITH WILL ACTUALLY BE PUTTING AN ONLINE PRESENCE SO THAT IN A VERY CUSTOMER-FRIENDLY WAY FOR THEM TO COME TO THE CITY OF SAN ANTONIO ONLINE TO PUT THEIR HOT COLLECTIONS, PAY FOR THEIR HOT COLLECTIONS AND ALSO REGISTER.

ANOTHER PORTION OF THIS CONTRACT WILL BE A COMPLIANCE FUNCTION TO ACTUALLY GO OUT AND IDENTIFY THE STRS THAT ARE CURRENTLY OPERATING TO MAKE SURE THAT THEY ARE PAYING THEIR APPROPRIATE HOT TAXES.

ONCE WE GET THAT FOUNDATIONAL PIECE IN, THEN WE WOULD FURTHER EXPLORE ADDITIONAL OPPORTUNITIES WITH THE STR PLATFORMS TO ACTUALLY DO COLLECTIONS ON BEHALF OF THE CITY OF SAN ANTONIO.

CURRENTLY THE PRELIMINARY CONVERSATIONS THAT WE'VE HAD, THERE ARE CERTAIN TERMS AND CONDITIONS THAT AREN'T VERY FAVORABLE TO THE CITY, SO WE'D HAVE TO CONTINUE WORKING THROUGH THOSE AND OVER INTO THE FUTURE.

>> PERRY: SO BASICALLY, THAT'S STARTING NOW AND MOVING FORWARD, WE'RE JUST GOING TO LIKE WRITE OFF WHATEVER HAS BEEN NOT PAID IN THE PAST?

>> NO.

IF WE ACTUALLY BECOME AWARE THAT IN THE PAST, IN THE PAST FOUR YEARS, THAT AN STR WAS OPERATING AND HOT TAX IS DUE, WE WOULD CONTACT THEM TO COLLECT THAT HOT TAX.

SO WE'RE NOT WRITING ANY PAST HOT TAX OFF.

>> PERRY: IT SEEMS LIKE TO ME THAT THE ACTUAL COMPANIES WOULD HAVE A BETTER RECORD OF THAT AND

[02:20:02]

WE COULD WORK WITH THE COMPANIES TO COLLECT THAT AND SET UP THAT VERSUS US GOING TO A SEPARATE COMPANY TO GO OUT AND TRY TO DO THAT INDIVIDUALLY WITH -- WHAT IS IT, 1500 OR WHATEVER THE NUMBER IS BUSINESSES OUT HERE.

>> THEY CAN COLLECT IT.

SOME OF THE CHALLENGES, JUST TO GIVE YOU SOME INSIGHT INTO SOME OF THE PRELIMINARY DISCUSSIONS WE'VE HAD WITH ONE OF THE MAJOR COMPANIES IS THAT THEY ONLY WANT TO TRANSMIT THE INFORMATION TO US IN AGGREGATE, AS FAR AS WHO IS ACTUALLY COLLECTING HOT TAX THEY WOULD LIKE WAIVERS FOR ANYTHING HISTORICALLY TO BE FORGIVEN, WHICH WE CANNOT AGREE TO, AND THEN IT WOULD ALSO HAVE TO BE ADDITIONAL COMPLEXITY BECAUSE WE WOULD HAVE TO HAVE AGREEMENTS WITH ALL THOSE DIFFERENT PLATFORMS THAT ARE ACTUALLY OPERATING IN SAN ANTONIO.

SO THERE ARE SOME CHALLENGES THAT WE STILL NEED TO WORK THROUGH, AND THAT'S WHY ON THE 15TH, WE'RE GOING TO BE PRESENTING A MORE COMPREHENSIVE SOLUTION FOR THE CITY OF SAN ANTONIO WITH THIS COMPANY HAVING AN ONLINE PRESENCE WHERE AN STR CAN ACTUALLY GO ONLINE, IT'S VERY USER-FRIENDLY, IN PAYING AND REPORTING THEIR HOT TAX.

>> PERRY: OKAY.

I LOOK FORWARD TO THAT PRESENTATION TO SEE WHAT THE DETAILS ARE, BECAUSE IT STILL -- SO IF I'M READING YOU RIGHT, THESE COMPANIES ARE SAYING, WELL, WE'LL SET THAT UP NOW AND, YOU KNOW, TAKE CARE OF THAT FROM NOW INTO THE FUTURE, BUT IN ORDER TO DO THAT, YOU HAVE TO FORGIVE EVERYTHING THAT'S HAPPENED IN THE PAST; IS THAT BASICALLY WHAT YOU'RE SAYING?

>> WITH THE ONE COMPANY WE'RE TALKING TO, THAT'S --

>> PERRY: CAN WE TALK TO ANY OTHER COMPANIES?

>> WE'VE TALKED TO JUST THE ONE SO FAR.

>> PERRY: OKAY.

OKAY.

I LOOK FORWARD TO THE MEETING ON THE 15TH THEN.

>> YES, SIR.

>> PERRY: GREAT.

>> MAYOR NIRENBERG: SHERYL, DO YOU HAVE SOMETHING TO ADD?

>> SCULLEY: JUST TO CLARIFY FOR THE COUNCILMAN, THESE ARE VERY GOOD QUESTIONS.

SO THEY'RE SUPPOSED TO BE PAYING TAXES TODAY, AND MANY OF THEM ARE.

BUT WHAT WE'RE GOING TO DO IS SURVEY THE UNIVERSE OUT THERE, BASICALLY DO AN AUDIT OF THOSE THAT EXIST TODAY AND WHETHER OR NOT THEY ARE PAYING.

THERE IS NO FREE PASS.

THEY DON'T -- WE WILL NOT FORGIVE PAST TAXES.

WE HAVE NOT DETERMINED EXACTLY HOW WE WILL COLLECT THOSE PAST TAXES BECAUSE IT WILL BE VERY DIFFICULT TO PROVE AT WHAT POINT THERE WERE RENTALS IN THOSE STRUCTURES, NONETHELESS, WE'RE GOING TO SET UP A SYSTEM GOING FORWARD DURING THIS PILOT PERIOD SO THAT WE CAN EVALUATE AND COME UP WITH THE BEST WAY TO MONITOR ALL OF THE STRS THROUGHOUT THE COMMUNITY.

BUT -- SO WE'RE CLEAR, SOME HAVE BEEN PAYING, PERHAPS MOST HAVE BEEN PAYING, BUT WE'RE GOING TO SURVEY THE UNIVERSE, MAKE SURE WE KNOW WHO IS OUT THERE AND THEN SET UP A USER-FRIENDLY SYSTEM TO MAKE IT EASY FOR THEM TO PAY AND FOR US TO MONITOR WHETHER OR NOT THEY'RE PAYING.

AND WHAT COMPANY WE USE, I MEAN, WE'LL FIGURE OUT WHO BEST TO HELP US DO THAT, BUT TO BE CLEAR, THEY ARE SUPPOSED TO BE PAYING AND WE'RE GOING TO COLLECT EVERYTHING THAT WE CAN.

OKAY?

>> PERRY: OKAY.

GREAT.

THANK YOU, SHERYL, I APPRECIATE THAT INFORMATION.

THANK YOU, TROY.

I THINK THAT'S IT FOR ME.

THANK YOU, SIR.

APPRECIATE IT.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PERRY.

COUNCILMAN BROCKHOUSE.

>> BROCKHOUSE: THANK YOU, MAYOR.

LET'S SEE.

JUST -- YOU KNOW, COUNCILMAN PELAEZ ACTUALLY MADE A COUPLE OF MY COMMENTS ALREADY SO I'LL JUST REITERATE THEM.

FROM SLIDE 4 ON THE PRESENTATION, AND JUST SOME BASIC FACTS THAT I THINK REALLY MADE THESE TYPES OF DECISIONS.

WE GO BACK AND LOOK AT EMPIRICAL EVIDENCE ABOUT THE IMPACT OF SHORT-TERM RENTALS, I THINK IT'S VERY CLEAR SHORT-TERM RENTALS DO NOT DAMAGE NEIGHBORHOOD PROPERTY VALUE, IN FACT, THEY PROTECT THEM AND THEY SLIGHTLY INCREASE THEM.

THERE WAS NO MEASURABLE DIFFERENCE IN CRIME RATES, AND THAT IS ACROSS THE COUNTRY.

I THINK WE SEE QUITE A BIT OF DATA AND EVIDENCE THAT THIS DOES NOT TURN INTO A PUBLIC HARM OR A PUBLIC SAFETY ISSUE, SO MY BIGGER CONCERN REALLY FALLS BACK ON THE COUNCIL'SABLE TO COME IN AND REGULATE A PERSONAL PROPERTY SITUATION HERE.

SO THIS BECOMES REALLY AS ITS BASIS A PROPERTY RIGHTS SITUATION.

I DO WANT TO COMMEND COUNCILMAN TREVINO AND COUNCILMAN GALLAGHER.

I GET WHAT YOU'RE TRYING TO GO WITH, IT'S A PROTECTION OF NEIGHBORHOODS, YOU'RE DOING THE BEST I THINK YOU CAN POSSIBLY DO TO PROTECT COMMUNITIES, THAT'S THE LARGER CONVERSATION HERE.

I THINK WE AS A COUNCIL HAVE TO REALLY START CONSIDERING AS WE BEGIN TO GROW THE COMMUNITY CREATE AFFORDABLE HOUSING OPPORTUNITIES AND DO ALL THESE BIG-THINKING ITEMS, OUR ATTEMPT TO MAINTAIN AND CONTROL THE CULTURE AND THE HISTORY THAT NEIGHBORHOODS HAVE, AND THAT'S THE BIGGEST CHALLENGE. IT'S NOT

[02:25:01]

REALLY THE STR PIECE, IT'S NOT REALLY AN INCENTIVE PIECE, IT REALLY COMES DOWN TO HOW DO WE PROTECT NEIGHBORHOODS GOING FORWARD SO THEY DON'T LOSE THEIR IDENTITY.

ULTIMATELY THAT'S IT.

AND AS WE COME THROUGH EACH ONE OF THESE, EACH ONE OF THEM HAS ITS OWN LITTLE INDIVIDUAL PROS AND CONS.

SO COUNCILMAN TREVINO, I'M SINGLING YOU OUT TO AN EXTENT BECAUSE I KNOW YOU'RE GOING AS BEST YOU CAN TO PROTECT NEIGHBORHOODS THAT I'M VERY FAMILIAR WITH AND HAVE WORKED ON IN THE PAST, AND I KNOW YOU'RE DOING THE BEST YOU CAN TO MAKE SURE THAT THEY CAN CALL THEMSELVES HOMES AND THEIR NEIGHBORS ARE THERE AND ALL THAT MAKES SENSE.

I CONTINUE JUST TO COME BACK TO IT WHERE IT REALLY WORKS AROUND THE DATA, AND THE DATA IS NOT THERE.

THESE ARE RESIDENTIAL PROPERTIES, THEY ARE NOT COMMERCIAL.

THE STATE OF TEXAS IS GOING TO WEIGH INTO THIS WITH LEGISLATION NEXT YEAR, I'M SURE, AND BEGIN, JUST LIKE THEY DID WITH UBER AND LYFT, AND THE POINT WAS ALSO MADE VERY WELL THAT THESE DISRUPTIVE TECHNOLOGIES THAT ARE COMING INTO OUR COMMUNITY, THEY'RE WITH US NO MATTER WHAT, SO OUR ABILITY TO REGULATE, WE HAVE TO JUST THINK TO THE LARGER CONVERSATION.

AND WHEN WE TALK ABOUT PROTECTING NEIGHBORHOODS, IT'S ALSO THESE REGULATIONS AND THE THINGS WE'RE DOING THAT POTENTIALLY IMPEDE SOME OF OUR BIGGER ITEMS WE WANT TO HIT.

SO THE MORE WE REGULATE, THE MORE WE PASS ON COSTS.

SOMEBODY ELSE IS PAYING THAT, THE CITY OF SAN ANTONIO, THE COUNCILMEMBERS, THE STAFF, WE'RE NOT PAYING THAT.

THE RESIDENTS ARE, THE TAXPAYERS, THE VISITOR PORTION OF THIS, I MEAN, WE JUST CAME OFF A FANTASTIC FINAL FOUR WHERE THE SHORT-TERM RENTAL MARKET WAS A HUGE SUPPORTING MECHANISM FOR THAT, AND THEY HELPED US PUT ON A SUCCESSFUL FINAL FOUR AND THE INFLUX OF PEOPLE WAS HANDLED WITHOUT ANY ISSUE WHATSOEVER.

SO I JUST GET THE SENSE THAT WE'RE -- YOU KNOW, WHEN THIS STARTED, I TRIED TO GO BACK AS FAR AS I COULD, AND WHAT I KEPT HEARING WAS THIS WAS ABOUT REGISTRATION, IT WAS ABOUT HOT TAX AND IT WAS JUST MAKING SURE THAT THERE WAS THE BASIC PORTAL AVAILABLE SO THAT WE COULD ENSURE THAT WE -- YOU KNOW, WE CAN REPORT AND USE THE TOOLS CURRENTLY IN PLACE TO HOLD HOMEOWNERS, PROPERTY OWNERS ACCOUNTABLE, CODE COMPLIANCE, ANIMAL CARE SERVICES, SAN ANTONIO POLICE DEPARTMENT.

A LOT OF WHAT WE'RE DOING HERE, IF WE JUST ENFORCE THE LAWS THAT ARE CURRENTLY ON THE BOOKS, I THINK WE'D BE IN A GOOD POSITION.

SO I'M NOT GOING TO BE SUPPORTIVE OF THE ORDINANCE TODAY, BECAUSE I THINK IT STEPS WAY OUT OF LINE, AND IT MOVED WELL PAST THE ORIGINAL INTENTION, AND I THINK IT'S GONE INTO AN OVERREGULATING ENVIRONMENT.

AND IF WE CONTINUE TO DO THIS, IT WILL IMPACT OTHER THINGS WE'RE TRYING TO -- THIS IS A CLEAR ISSUE AS WELL WITH THE HOTEL AND TOURISM BUSINESS IN OUR COMMUNITY, WHICH DOESN'T GET A LOT OF PLAY.

WE DON'T SIT UP HERE A LOT AND TALK ABOUT THAT, BUT THIS HAS A DIRECT IMPACT.

THIS IS BEDS, THIS IS OPPORTUNITY, THIS IS -- AND LIKE THAT FINAL FOUR EXAMPLE, CLEAR PRODUCT THAT THE CITY OF SAN ANTONIO CAN PUSH.

AND PEOPLE ARE INVESTING IN THEIR STRS, WHEN THEY COME IN AND THEY HAVE THEIR PROPERTY AND THEY WANT TO RENT IT OUT, THEY'RE PUTTING MONEY INTO IT.

THE FURNITURE UPGRADES, THE PAINT, EVERYTHING ABOUT THEIR HOME, THEIR PROPERTY BECOMES A LITTLE BIT BETTER BECAUSE IN THE GAME OF SHORT-TERM RENTALS, THE MARKET WEEDS OUT THOSE THAT CANNOT DO THE JOB THROUGH THE REVIEW PROCESS AND ALL THESE OTHER THINGS THAT OCCUR WITH SHORT-TERM RENTALS, WHAT IT GIVES YOU IS A GREATER PRIDE IN YOUR PROPERTY BECAUSE, YEAH, IS YOUR PERSONAL PROPERTY.

IT'S YOUR RESIDENTIAL LOCATION.

AND THERE IS NO EVIDENCE ANYWHERE, NO MATTER HOW HARD WE'VE LOOKED THAT SHOWS THESE ARE A PROBLEM ANYWHERE, WHETHER IT'S CRIME, PUBLIC SAFETY, HEALTH OR WHATEVER.

IT'S JUST NONEXISTENT AND THE DATA PROVES IT.

SO WHAT IT COMES BACK TO IS REALLY HOW WE GROW OUR COMMUNITY AND KEEP OUR NEIGHBORHOODS JUST AS RESPECTED IN CULTURE AND IDENTITY, AND THAT'S QUESTION I DON'T THINK IS ANSWERED BY OVERREGULATION IN THIS.

I THINK WE'RE GOING TO HAVE TO DIG DEEP.

I'M THANKFUL FOR THE STAFF'S WORK.

THIS ONE, MIKE AND THE TEAM HAVE BEEN WORKING ON THIS SINCE WE GOT SEATED ON THE COUNCIL, I THINK.

WE'VE BEEN TALKING ABOUT THIS FOR A YEAR AND A HALF, AND THAT'S INDICATIVE OF A GOOD PUBLIC PROCESS AND WE'VE SEEN THAT IN A COUPLE OF OTHER THINGS LIKE THE ALAMO AND REAL TOUGH VOTES WHERE WE HAD TO GO OVERBOARD ON PUBLIC ENGAGEMENT, SO I THINK THE PROCESS WORKED ITS WAY THROUGH.

I'M NOT HAPPY WITH THE OUTPUT, BUT I'LL CAST MY VOTE AGAINST IT TODAY BECAUSE I JUST WANT TO MAKE SURE THAT WE'RE CONTINUING TO DO THE BEST WE CAN TO PROTECT PROPERTY RIGHTS AND OUR LONGER TERM GOALS.

LET'S NOT CREATE -- OR TRY TO CREATE -- YOU KNOW, I GUESS WHAT I'M TRYING TO SAY, LET'S NOT TRY TO SOLVE PROBLEMS THAT DON'T EXIST.

LET'S MAKE THE LAWS WHERE THEY MATTER MOST, LET'S GET AS MUCH OF THIS GOVERNMENT PIECE AS WE CAN OUT OF THIS, LET THE MARKET TAKE CONTROL OF IT, AND I THINK IN STRS IS A PERFECT EXAMPLE OF THAT.

AT THE END OF THE DAY, THOUGH, IT WAS HARD WORK BY THE STAFF AND THE COMMITTEE, AND EVERYBODY DID WHAT THEY COULD.

SO I'M THANKFUL FOR THE PROCESS, IMOO THANKFUL FOR THE PUBLIC ENGAGEMENTSING, WHO I THOUGHT WAS OFF THE CHARTS TO COUNCILMAN PERRY'S AND PELAEZ'S POINT, I'M GOING TO FALL ON THE SIDE OF PERSONAL PROPERTY RIGHTS.

SO THANK YOU, MAYOR, AND I APPRECIATE THE DEBATE AND THE OPPORTUNITY TO SPEAK TODAY.

THANK YOU, SIR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN BROCKHOUSE.

[02:30:02]

COUNCILWOMAN SANDOVAL?

>> SANDOVAL: THANK YOU, MAYOR.

YOU KNOW, A FEW MINUTES AGO A BUNCH OF US WERE FREEZING UP HERE ON THE DAIS, AND I WAS READY FOR THIS ISSUE TO BE OVER AND VOTED ON.

BUT NOW THE TEMPERATURE IS MUCH BETTER, AND I THINK I'M READY TO CONTINUE THE DIALOGUE, SO THANK YOU, STAFF, FOR FIXING THAT.

I WANT TO FIRST OF ALL THANK MIKE AND THE WHOLE TEAM THAT'S BEEN WORKING WITH HIM ON THIS.

I KNOW YOU HAVE A LOT OF THINGS ON YOUR PLATE, BUT I THINK YOU DO EACH ONE THOUGHTFULLY, CAREFULLY, AND YOU'RE DEDICATED TO MAKING SURE YOU BRING A GOOD PRODUCT FORWARD, SO THANK YOU VERY MUCH, MIKE.

AND TO EACH MEMBER OF THE TASK FORCE, I DON'T KNOW IF MR. -- TONY, ARE YOU STILL HERE? OKAY.

OH, THERE YOU ARE.

THE GROUP THAT WAS WORKING ON THIS, YOU KNOW, WHEN WE HAVE SOME VERY COMPLICATED ISSUES COME FORWARD TO COUNCIL, THAT IS A MODEL THAT WE USE AND WE THROW ALL THE STAKEHOLDERS IN THE ROOM TOGETHER AND WE SAY, KIND OF YOU FIGURE IT OUT AND TELL US WHAT YOU WOULD COME UP WITH.

SO THANK YOU FOR TAKING THAT ON.

AND I THINK THAT REALLY SPEAKS TO THE FACT THAT IT'S NOT JUST GOVERNMENT COMING FORWARD OR NOT JUST US SAYING YOU MUST DO THIS OR MUST DO THAT.

IF THE STAKEHOLDERS HAD THEIR WAY, WHAT WOULD THEY COME UP WITH IF THEY HAD TO NEGOTIATE MOPG THEMSELVES AND I THINK THAT'S A GREAT AND I DO WANT TO POINT OUT IT WAS HOTEL OWNERS, NEIGHBORHOOD MEMBERS WHO MAY OR MAY NOT OPERATE AN STR, ALL OF THEM PUTTING THEIR THINKING CAPS ON AND NEGOTIATING TOGETHER ON THIS.

SO THANK YOU AGAIN.

I ALSO WANT TO THANK COUNCILMAN TREVINO AND HIS TEAM FOR COMING FORWARD WITH SUCH STRONG AMENDMENTS -- WELL, NOT AMENDMENTS, BUT EARLIER CHANGES THAT MADE THIS ORDINANCE, I THINK, MORE ROBUST AUDIO] SO THANK YOU VERY MUCH FOR YOUR WORK ON THAT, COUNCILMAN.

I WILL BE SUPPORTING THE ORDINANCE AS IS TODAY.

BUT I DO HAVE JUST A COUPLE OF COMMENTS THAT I WANT US TO LOOK OUT FOR.

I THINK WHEN WE STARTED THE WORK ON THIS, WHICH WAS BEFORE SOME OF US WERE HERE AND YOU PUT THE TASK FORCE TOGETHER, I THINK YOU BROUGHT FORWARD THE RIGHT STAKEHOLDERS.

SINCE THEN THE COUNCIL HAS TAKEN ON THIS HOUSING POLICY ISSUE AND COME FORWARD WITH SOME RECOMMENDATIONS FOR THAT.

SO IF I HAD TO GO BACK IN TIME OR IF I COULD, THAT'S PROBABLY ONE THING I WOULD CHANGE IS TO HAVE A STAKEHOLDER ON THAT TASK FORCE THAT ALSO CONSIDERED IMPACTS ON HOUSING AND HOUSING STOCK.

SO I DON'T THINK WE SHOULD CHANGE THE ORDINANCE RIGHT NOW, BUT I DO WANT TO SAY THAT THAT'S SOMETHING THAT WE SHOULD WATCH.

WHEN I GO ONLINE AND I LOOK AT HOME LISTINGS, IF THERE IS A POSSIBILITY OF AN ACCESSORY DWELLING UNIT RENTED OUT AS AN AIRBNB, YOU KNOW, IT MIGHT BE LISTED ON THERE, AND IT CERTAINLY MAKES THE UNIT MORE MARKETABLE.

AND IT SLIGHTLY DOES -- WHEN YOU MAKE A UNIT MORE MARKETABLE THAT MEANS SOMEONE MIGHT BE ABLE TO PAY MORE FOR IT.

ONCE YOU'RE ABLE TO PAY MORE FOR IT THAT MEANS FEWER PEOPLE ARE ABLE TO BUY IT.

WHAT I'M GETTING AT IS IT IMPACTS THE AFFORDABILITY OF OUR HOMES.

I'M GOING TO SUPPORT THE ORDINANCE AS IT IS TODAY BUT I THINK THAT'S SOMETHING WE NEED TO KEEP A CLOSE EYE ON.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN SANDOVAL.

COUNCILMAN SALDANA.

>> SALDANA: THANK YOU, MAYOR.

AND JUST TO START OFF MY COMMENTS I WAS THINKING ABOUT A COMMENT THAT WAS BROUGHT UP SEVERAL MONTHS AGO WHEN WE FIRST WERE PRESENTED ON THIS DURING THE B SESSION WHICH WAS, YOU KNOW, AIRBNB IS COMING.

IT'S HERE.

AND ONE OF THE QUESTIONS POSED TO COUNCIL MEMBERS WAS HOW WOULD YOU FEEL IF YOUR NEIGHBOR WAS HOSTING AN AIRBNB.

AND MY RESPONSE WAS I ACTUALLY DO HAVE A NEIGHBOR AND HE OR SHE DOES HAVE AN AIRBNB.

SO I KNOW THE EXPERIENCE.

I'VE FELT IT IN MY OWN NEIGHBORHOOD AND, FRANKLY, IT'S NOT A BAD EXPERIENCE I HAVE HAD.

IN MY CASE YOU HAVE A LOT OF FAMILIES WHO ARE GOING TO SEE GRADUATIONS AT LACKLAND AND A LOT OF MILITARY FAMILIES COMING IN AND OUT.

I HAVE AN EXPERIENCE, AND I'M ALSO A POLICYMAKER, SO I HAVE TO THINK ABOUT NOT JUST MY OWN INDIVIDUAL EXPERIENCE IN THE NEIGHBORHOOD.

AND TO ANSWER A QUESTION WHETHER WE HAVE A PROBLEM THAT NEEDS FIXING, I THINK WE DO AND I THINK IT'S ONE OF SPEED AND ACCELERATION.

WHILE IN MY OWN NEIGHBORHOOD ON THE SOUTH SIDE I'M NOT WORRIED ABOUT THE SPEED AND ACCELERATION OF AIRBNB ON MY OWN BLOCK.

I SHOULD BE WORRIED ABOUT THE SPEED AND ACCELERATION OF

[02:35:04]

AIRBNBS IN OTHER NEIGHBORHOODS THAT ARE MORE MARKETABLE FOR AIRBNBS.

IF YOU LIVE AROUND KING WILLIAM, THE ALAMODOME, OR DIGNOWITY, THE SPEED SHOULD WORRY YOU WITHOUT ANY BRAKES TO PUT A PUMP ON, THEN YOU'RE CONCERNED ABOUT THE ACCELERATING NATURE OF THE CHANGE OF YOUR COMMUNITY.

SO LET ME TAKE MYSELF OUT OF MY OWN BOX, AS SOMEBODY WHO HAS HAD EXPERIENCE WITH AN AIRBNB BUT SOMEBODY WHO IS A POLICYMAKER WHO WOULD GENERALLY SAY I DON'T HAVE A PROBLEM WITH AIRBNB, BUT OTHER PEOPLE DO, WHETHER IT'S IN DISTRICT 9 OR DISTRICT 1.

HERE'S THE EXPERIENCE I THINK SPEED CAUSES WHEN IT CAUSES A PROBLEM.

IF YOU ARE IN THE LAVACA NEIGHBORHOOD OR IN TOBIN HILL, IT IS LIKELY THAT YOU'RE PREDICTING THE FUTURE AND YOU'RE SEEING MORE OF THESE FOLKS LOOK AT YOUR NEIGHBORS AND THE RESIDENCES AROUND YOU AS PROPERTY INVESTMENTS.

AND I THINK THAT'S SOMETHING THAT WE SHOULD, AS POLICYMAKERS HAVE SOME SORT OF FIX OR REPOSITIVE.

AND I APOLOGIZE TO JODY NEWMAN, IF YOU'RE EVER IN THE CHAMBERS I'M GOING TO CALL YOU OUT.

BUT SHE EDUCATED ME ON WHAT THAT SPEED AND ACCELERATION OF AIRBNBS CAN DO WHEN YOU'RE ESSENTIALLY LIVING IN A COMMUNITY AND IF YOU HAVE EIGHT HOUSES DOWN A BLOCK, SIX OF THEM ARE AIRBNBS AND YOU'RE ALMOST FUNCTIONING AS A CONCIERGE TO FOLKS WHO KNOCK ON YOUR DOOR AND SAY WHAT CAN WE DO IN YOUR NEIGHBOR, WHAT CAN WE DO SINCE WE'RE VISITING HERE? THAT DOES CHANGE THE NEIGHBORHOOD.

THAT'S WHY SPEED AND ACCELERATION IS THE PROBLEM WE NEED TO HELP FIX.

IF WE DID NOT PASS THIS ORDINANCE, IF WE VOTED IT DOWN, I COULDN'T BE HELPING THOSE NEIGHBORHOODS WHO ARE SEEING THIS CHANGE AND BEARING THE BRUNT OF IT QUICKLY.

SO IT'S POSSIBLE TO CALL THIS AN IMPERFECT SOLUTION.

IT'S POSSIBLE TO SAY WE'RE NOT SATISFYING EVERYONE, BUT I THINK IT WOULD BE REALLY A LACK OF US STANDING UP TO A PROBLEM THAT NEEDS FIXING IF WE JUST DECIDED TO VOTE AGAINST IT AND DO NOTHING.

SO WITH THAT IN MIND, I THINK WE'RE GETTING TO A POINT WHERE I FEEL COMFORTABLE WITH WHAT WE'RE MOVING FORWARD WITH AND I HOPE THOSE FOLKS WHERE ACCELERATION AND SPEED OF AIRBNBS ARE GOBBLING UP THE MARKET TO KNOW THEY CAN CONTROL THE PACE OF THAT WITH SOME REGULATIONS AND RULES.

IF WE POSTPONE THIS FOR SIX MORE MONTHS I IMAGINE YOU'RE GOING TO HAVE A LOT OF FOLKS RUSHING TO GET INTO THOSE PROPERTIES BEFORE THE RULES COME INTO PLACE.

THAT'S THE CONCERN THAT ALLOWS ME TO SUPPORT THE WORK THAT COUNCILMAN TREVINO AND HIS TEAM HAVE PUT TOGETHER TO GET US TO THIS POINT.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN SALDANA.

THAT'S EVERYONE WHO SIGNED UP TO SPEAK ON COUNCIL.

I'LL JUST WRAP UP BEFORE WE ACTUALLY GET TO THE VOTE BY THANKING OUR STAFF, COUNCILMAN TREVINO AND HIS STAFF AND MY STAFF AS WELL FOR WORKING HARD ON ACHIEVING I THINK A RESOLUTION TO WHAT COULDN'T BE A WIDER GAP IN POLICY OR PHILOSOPHY.

ON ONE HAND, AND YOU HAVE HEARD IT UP HERE ON THE DAIS TODAY, ON ONE HAND WE BELIEVE THAT IT'S IMPORTANT TO ENCOURAGE THE INNOVATION AND THE INDUSTRY THAT HAS ARRIVED BECAUSE OF A MARKET NEED THAT IS BEING ADDRESSED BY SHORT-TERM RENTALS.

BUT, ON THE OTHER HAND, ONE OF OUR VERY IMPORTANT PRINCIPLES AS NEIGHBORS BUT ALSO POLICYMAKERS IS PROTECTING THE QUALITY OF LIFE IN PEOPLE'S NEIGHBORHOODS.

AND I THINK THAT THE PERSON WHO CAME UP HERE AND ASKED THE QUESTION WHAT IS A NEIGHBORHOOD IS, FOR ME, WHERE THIS REALLY BOILED DOWN TO.

WHAT IS A NEIGHBORHOOD IF NOT FOR ITS NEIGHBORS? AND SO ACHIEVING A BALANCE THAT NOT ONLY ENCOURAGES THE KIND OF INDUSTRIES AND RESPONDS TO THE INDUSTRIES THAT ARE FORMING SO RAPIDLY, BUT ALSO ALLOWS US TO PROTECT THE INTEGRITY OF NEIGHBORHOODS AND PROTECT NEIGHBORS IN THEIR HOMES IS ALSO EQUALLY IMPORTANT.

AND I THINK WE'VE ACHIEVED THAT HERE TODAY.

IT'S BEEN A LONG TIME COMING.

I THINK THAT COUNCILMAN GALLAGHER FILED HIS CCR PROBABLY IN 2015, AT THIS POINT.

AND WE'RE FINALLY HERE WITH, I THINK, A WORTHY SIX-MONTH PILOT THAT WILL BE TWEAKED, NO DOUBT, BUT WILL END UP IN A PLACE WHERE WE'LL BE PROUD TO HAVE A WELL-CRAFTED ORDINANCE THAT PROTECTS EVERYONE'S INTEREST.

SO WITH THAT, THANK YOU AGAIN FOR ALL THE HARD WORK.

THANK YOU FOR ALL THE CITIZENS AND RESIDENTS AND BUSINESS OWNERS WHO CAME OUT TO HELP US MAKE THIS BETTER.

WE LOOK FORWARD TO YOUR PARTICIPATION AS THIS CONTINUES TO BE IMPLEMENTED.

SO THERE IS A MOTION AND A SECOND FOR APPROVAL OF ITEM NO.

[02:40:05]

PLEASE VOTE.

MOTION CARRIES.

ALL RIGHT.

THE TIME IS TEN TILL NOON AND WE HAVE SIX ITEMS LEFT ON OUR MORNING AGENDA TO GET THROUGH.

SO WHAT I'LL DO RIGHT NOW IS CALL FOR A RECESS UNTIL TEN BEFORE 1:00.

THAT WAY WE CAN ALL, INCLUDING THE FOLKS WHO ARE HERE TODAY FROM THE PUBLIC, GO GRAB SOME LUNCH, COME BACK, GET THROUGH OUR MORNING AGENDA AND GO ON TO THE ZONING ITEMS. SO WE'LL BREAK UNTIL

>> MAYOR NIRENBERG: WELCOME BACK, EVERYONE.

THANK YOU FOR YOUR PATIENCE THE CITY COUNCIL HAS NOW RECONVENED FROM ITS RECESS.

WE HAVE SIX ITEMS TO GET THROUGH FROM OUR MORNING AGENDA, AND SO

[10. Ordinance declaring the CPS Energy Shepherd Road Substation and Transmission Project, a public use project, on behalf of City Public Service (CPS) Energy, authorizing the acquisition through negotiation or condemnation of approximately 26 permanent easement parcels, two permanent access easement parcels and seven temporary construction easement parcels involving 22 property owners to construct approximately 29,200 feet of transmission line starting at the Shepherd Road Substation near the intersection of Shepherd Road and Jarratt Road, and extending north along Shepherd Road across Macdona Lacoste Road and heads north to a northeasterly direction to Cagnon Road in southwestern Bexar County, Texas nearest to Council District 4. [Peter Zanoni, Deputy City Manager; Mike Frisbie, Director, Transportation & Capital Improvements]]

WE'LL BEGIN WITH ITEM NO. 10.

>> ITEM NO. 10 IS AN ORDINANCE DECLARING THE CPS ENERGY SHEPHERD ROAD SUBSTATION AND TRANSMISSION PROJECT A PUBLIC USE PROJECT ON BEHALF OF CPS ENERGY AUTHORIZING THE ACQUISITION THROUGH NEGOTIATION OR CONDEMNATION OF APPROXIMATELY 26 PERMANENT EASEMENT PARCELS, TWO PERMANENT ACCESS EASEMENT PARCELS AND SEVEN TEMPORARY CONSTRUCTION EASEMENT PARCELS INVOLVING 22 PROPERTY OWNERS TO CONSTRUCT APPROXIMATELY 29,200 FEET OF TRANSMISSION LINE STARTING AT THE SHEPHERD ROAD SUBSTATION NEAR THE INTERSECTION OF SHEPHERD ROAD AND JARRATT ROAD AND EXTENDING NORTH ALONG SHEPHERD ROAD ACROSS MACDONA LACOSTE ROAD AND HEADS NORTH TO A NEARLY DIRECTION TO CAGNON ROAD IN SOUTHWESTERN BEXAR COUNTY, TEXAS NEAREST TO CITY COUNCIL DISTRICT 4.

>> MAYOR NIRENBERG: COUNCILMAN SALDANA.

>> SALDANA: THANK YOU, MAYOR.

I MOVE THAT THE CITY OF SAN ANTONIO AUTHORIZE THE USE OF THE POWER OF EMINENT DOMAIN TO ACQUIRE REAL PROPERTY FOR A PUBLIC USE PROJECT FOR THE CPS ENERGY SHEPHERD BY ACQUIRING THE FOLLOWING PROPERTIES DESCRIBED BY THE CITY CLERK AND INCORPORATED AS PART OF THIS MOTION.

>> THE PRIVATELY-OWNED PROPERTIES FOR TEMPORARY AND PERMANENT EASEMENT INTERESTS LOCATED IN BEXAR COUNTY NEAREST TO CITY COUNCIL DISTRICT 4 ARE OUT OF THE FOLLOWING.

COUNTY BLOCKS 4350, 4251, 4317, 4318, 4319, 4320, 5197, AND 5737 BEXAR COUNTY, TEXAS.

THESE PROPERTIES ARE DEPICTED IN THE OVERALL PROJECT DRAWING MAP IN EXHIBIT PART OF THIS MOTION.

>> MAYOR NIRENBERG: OKAY.

THERE IS A MOTION FOR APPROVAL OF ITEM NO. 10.

DID I HEAR A SECOND? OKAY.

THERE'S A MOTION AND A SECOND FOR APPROVAL OF ITEM NO. 10 AS READ.

PLEASE VOTE.

[11. Ordinance declaring a 5.00 acre unimproved tract of city-owned property near Weidner Road in Council District 10 as surplus and authorizing its sale to Rockport Family Partnership, Ltd. for $217,800.00 for the purpose of constructing a drainage facility and authorizing staff to initiate zoning as necessary for the conveyance of the property. Funds from the sale will be deposited in the Storm Water Regional Detention Fund. [Peter Zanoni, Deputy City Manager; Mike Frisbie, Director, Transportation & Capital Improvements]]

MOTION CARRIES.

ITEM NO. 11.

>> ITEM NO. 11 IS AN ORDINANCE DECLARING A 5-ACRE UNIMPROVED TRACT OF CITY-OWNED PROPERTY NEAR WEIDNER ROAD IN COUNCIL DISTRICT 10 AS SURPLUS AND AUTHORIZING ITS SALE TO ROCKPORT FAMILY PARTNERSHIP, LIMITED FOR $217,800 FOR THE PURPOSE OF CONSTRUCTING A DRAINAGE FACILITY AND AUTHORIZING STAFF TO INITIATE ZONING AS NECESSARY FOR THE CONVEYANCE OF THE PROPERTY.

FUNDS FROM THE SALE OF THE PROPERTY WILL BE DEPOSITED IN THE STORM WATER REGIONAL DETENTION FUND.

>> MAYOR NIRENBERG: COUNCILMAN COURAGE.

>> COURAGE: THANK YOU, MAYOR.

I JUST BROUGHT THIS UP BECAUSE I NOTICED THE SALES PRICE FOR FIVE ACRES OF LAND IN THE CITY.

I KNOW THAT WE'VE GOT SURPLUS PROPERTY AND OFTENTIMES WE'RE CALLED UPON TO SELL IT TO INTERESTS THAT WANT TO DEVELOP IT.

I BELIEVE THE INITIAL COST TO THE CITY FOR THIS PROPERTY WAS MORE THAN TWICE WHAT WE'RE SELLING IT FOR AT THIS TIME.

COULD YOU JUST REVIEW THAT AGAIN FOR US?

>> SURE.

COUNCILMAN, BACK IN 1999 THE CITY DID PURCHASE THE FIVE ACRES WITH THE INTENT OF CONSTRUCTING A REGIONAL DETENTION POND AT THE SITE.

BACK IN '99, THERE WAS THE THOUGHT PROCESS THAT THAT WOULD PROVIDE A PUBLIC BENEFIT TO THE REGION.

HOWEVER, WE NEVER CONSTRUCTED THE POND AND JUST RECENTLY IN 2015 OR STORM WATER STAFF RECESSED IT, DETERMINED THAT IT DID NOT PROVIDE THAT PUBLIC

[02:45:01]

BENEFIT, AS WAS ONCE THOUGHT.

AND SO THEY PREFER TO DISPOSE OF THE PROPERTY KNOWING THAT THE PETITIONER DID HAVE INTEREST IN THE PROPERTY TO BUILD AN ON-SITE DETENTION SITE.

WE DID REAPPRAISE THE PROPERTY RECENTLY AND IT CAME IN AT $210,000.

AND WE ARE ACTUALLY PROPOSING TO SELL THE PROPERTY TO THE PETITIONER FOR $217,800.

>> COURAGE: ALL RIGHT.

IT JUST AMAZED ME THAT WE PAID 400-SOMETHING FOR A PIECE OF PROPERTY 20 YEARS AGO THAT'S ACTUALLY GONE DOWN IN VALUE BY 50%.

THAT'S THE CONCERN I HAD ABOUT IT, AS WELL AS THE FACT THAT THIS PROPERTY IS GOING TO BE DEVELOPED IN ORDER TO CREATE AN ADDITIONAL SITE FOR A PRIVATE CHARTER SCHOOL -- EXCUSE ME, A CHARTER SCHOOL.

AND I THINK THAT WE ARE DOING TOO MUCH ENABLING CHARTER SCHOOLS TO GROW AND DEVELOP IN OUR PUBLIC SCHOOL AREAS.

SO FOR THOSE REASONS I'M GOING TO VOTE AGAINST IT.

I JUST WANTED THE COUNCIL TO BE AWARE OF THE DECREASE IN VALUE OVER SUCH A LONG PERIOD OF TIME IS VERY SURPRISING.

THANK YOU.

>> MAY I CLARIFY? THE SITE -- WE DO SUPPORT THE SALE OF THE SITE TO THE PETITIONER.

THIS IS A MANDATORY DETENTION AREA.

SO IF THE FIVE-ACRE SITE WAS TO BE DEVELOPED ON ITS OWN, IT WOULD BE REQUIRED TO PROVIDE ON-SITE DETENTION.

SO THAT REALLY LIMITS THE AMOUNT OF THE FIVE-ACRE SITE THAT CAN BE DEVELOPED.

IT IS IN A LOW POINT OF THE AREA, AND ALSO IT FLOODS IN THAT AREA QUITE A BIT.

WEIDNER ROAD DOES HAVE A LOW-WATER CROSSING.

AND SO WE DO SEE THE BENEFIT OF THE PETITIONER COMING IN AND BUILDING THAT ON-SITE DETENTION.

ALSO, THE SCHOOL OF SCIENCE AND TECHNOLOGY IS RELOCATING FROM THEIR CURRENT LOCATION ON CROWN POINT DRIVE TO THIS SITE.

SO IT'S NOT AN ADDITIONAL CHARTER SCHOOL.

IT'S ACTUALLY A RELOCATION OF AN EXISTING CHARTER SCHOOL.

>> COURAGE: RIGHT.

BUT THEY CAN EXPAND FROM 300 STUDENTS TO AS MANY AS 700 STUDENTS.

AND AT ABOUT A HALF A MILLION DOLLARS FOR EVERY 100 STUDENTS THE SCHOOL DISTRICT LOSES, I THINK THAT'S PRETTY EXPENSIVE.

>> PETER ZANONI, OUR DEPARTMENT CITY MANAGER, DID CALL AND SPEAK WITH THE NEISD SUPERINTENDENT AND HE WAS NOT OPPOSED TO IT BECAUSE IT IS A RELOCATION.

>> COURAGE: THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE, COUNCILMAN PERRY.

>> PERRY: THANK YOU, SIR.

I JUST WANTED TO REEMPHASIZE SOME OF YOUR POINTS, CHRISTY, THAT IT IS -- WE'RE BENEFITING FROM THIS BY GETTING THAT DRAINAGE FIXED AS PART OF THEIR PROJECT HERE.

SO THEY'RE TAKING ON THE EXPENSE OF DEVELOPING THAT RETENTION POND AND GETTING THAT DONE TO PREVENT SOME OF THAT FLOODING DOWN IN THAT AREA.

SO WE ARE BENEFITING FROM THAT.

AND, AS YOU SAY, IT'S A REPLACEMENT SCHOOL.

IT'S NOT AN ADDITIONAL SCHOOL.

EVEN IF IT WAS ADDITIONAL SCHOOL, I WOULD STILL SUPPORT THAT.

AND, YOU KNOW, IT'S NOT ONLY THAT, BUT ALSO SOME APARTMENTS BEING CONSTRUCTED IN THAT AREA AS WELL.

SO WE'RE GETTING HOUSING, SCHOOLS, AND DRAINAGE IMPROVEMENTS IN THAT AREA.

SO I FULLY SUPPORT THAT AND, SIR, WITH THAT I WOULD LIKE TO MOTION TO APPROVE.

>> MAYOR NIRENBERG: OKAY.

THERE'S A MOTION AND A SECOND FOR APPROVAL OF ITEM NO. 11.

PLEASE VOTE.

[17. Ordinances amending the Unified Development Code (UDC), Chapter 35 of the City Code, with proposed changes to the following: A) Section 35-343. - "IDZ" Infill Development Zone; B) Section 35-341. - "MXD" Mixed Use District; and C) Section 35-310.05a. - Single-Family Residential District. [Roderick Sanchez, Assistant City Manager; Michael Shannon, Director, Development Services]]

MOTION CARRIES.

>> ITEM NO. 17.

>> ITEM 17 IS AN ORDINANCE AMENDING THE UNIFIED DEVELOPMENT CODE CHAPTER 35 OF THE CITY CODE WITH PROPOSED CHANGES TO THE FOLLOWING.

ITEM A IS SECTION 35-343 IDZ INFILL DEVELOPMENT ZONE.

ITEM B IS SECTION 35-341 MIXED USE DISTRICT.

AND ITEM C IS SECTION 35-310.05A SINGLE-FAMILY RESIDENTIAL DISTRICT.

>> MAYOR NIRENBERG: OKAY.

WE HAD SEVERAL CITIZENS SIGNED UP TO SPEAK ON ITEM NO. 17.

I DON'T BELIEVE ANY OF THEM ARE HERE, BUT I'M GOING TO CALL THE NAMES, REGARDLESS.

AND PLEASE COME FORWARD IF YOU'RE STILL HERE.

[02:50:02]

AND I BELIEVE THAT IS EVERYONE.

IS THERE ANYONE HERE THAT HAD SIGNED UP TO SPEAK ON ITEM NO.

17 THAT I DID NOT CALL? OKAY.

COUNCILMAN TREVINO.

>> TREVINO: THANK YOU, MAYOR.

I'LL BE BRIEF.

I MOVE TO CONTINUE ITEM NO. 17 TO NOVEMBER 15TH.

>> MAYOR NIRENBERG: THERE'S A MOTION AND A SECOND FOR A CONTINUANCE OF ITEM 17 UNTIL NOVEMBER 15TH.

PLEASE VOTE.

[20. Ordinance approving a Chapter 380 Economic Development Loan Agreement with Westside Development Corporation for up to $252,410.00 in Inner City Incentive Funds for rehabilitation of the Basila Frocks building located at 502 N. Zarzamora St. [Lori Houston, Assistant City Manager; John Jacks, Director, Center City Development and Operations]]

MOTION CARRIES.

ITEM NO. 20.

>> ITEM 20 IS AN ORDINANCE APPROVING A CHAPTER 380 ECONOMIC DEVELOPMENT LOAN AGREEMENT WITH WEST SIDE DEVELOPMENT CORPORATION FOR UP TO $252,410 IN INNER CITY INCENTIVE FUNDS FOR REHABILITATION OF THE BASILA FROCKS BUILDING LOCATED AT 502 NORTH ZARZAMORA STREET.

>> MAYOR NIRENBERG: COUNCILWOMAN GONZALES.

>> GONZALES: IS THERE A PRESENTATION?

>> GOOD AFTERNOON, MAYOR AND COUNCIL.

YES, WE DO HAVE A VERY BRIEF PRESENTATION ON THE ITEM, REALLY JUST TO KIND OF SHOW YOU A COUPLE OF HISTORIC IMAGES OF THE ITEM.

THIS IS AN ITEM APPROVING A CHAPTER 380 ECONOMIC DEVELOPMENT LOAN FOR THE BASILA FROCKS BUILDING.

THIS IS WITH THE WEST SIDE DEVELOPMENT CORPORATION FOR UP TO $252,410.

AND THE BUILDING IS LOCATED AT 502 NORTH ZARZAMORA IN COUNCIL DISTRICT 5.

THIS IS A VERY EXCITING PROJECT THAT OUR DEPARTMENT -- THAT THE CITY IS PROUD TO PARTNER WITH THE WDC ON.

THIS WAS A BUILDING THAT WAS -- THAT'S BEEN VACANT FOR SEVERAL YEARS AND IT'S HISTORIC AND WAS ACTUALLY PROPOSED FOR DEMOLITION WHEN SEVERAL WEST SIDE NONPROFIT ENTRITIES CAME TOGETHER TO SAVE THE BUILDING FROM DEMOLITION.

AND THE BUILDING WAS ACTUALLY PURCHASED BY THE WDC WITH PLANS TO REHAB THE HISTORIC 20,000 SQUARE FOOT STRUCTURE INTO CREATIVE OFFICE SPACE.

THE SPACE WILL INCLUDE SOME ADMINISTRATIVE SPACE FOR THE WEST SIDE EDUCATION TRAINING CENTER AND THE CHRISTIAN HOPE RESOURCE CENTER.

AND THE WDC ALREADY HAS FOUR LETTERS OF INTEREST FROM CREATIVE AGENCIES ON THE WEST SIDE WHO ARE INTERESTED IN LOCATING TO THE SPACE.

AND THESE ARE BUSINESSES THAT ARE CURRENTLY LOCATED ON THE WEST SIDE AND HAVE OUTGROWN THEIR CURRENT SPACE, SO IT'S A GREAT RETENTION PLAN IN AN EFFORT TO GROW THOSE BUSINESSES AND KEEP THEM ON THE WEST SIDE OF TOWN.

THE PROPOSED LOAN AMOUNT IS $252,410.

IT IS A FORGIVABLE LOAN OVER A FIVE-YEAR PERIOD.

AND THE FORGIVENESS IS DONE IF THE BUILDING REMAINS OCCUPIED FOR AT LEAST 80% OF EACH YEAR.

FUNDS ARE AVAILABLE IN OUR INNER CITY INCENTIVE FUND AND THE WDC PLANS TO INVEST APPROXIMATELY $2.3 MILLION INTO THE REHABILITATION OF THE PROPERTY.

>> GONZALES: OKAY.

THANK YOU VERY MUCH, VERONICA.

I ALSO JUST PULLED THIS TO HIGHLIGHT IT.

THIS WAS A PROPERTY THAT WAS -- CAME TO MY ATTENTION BECAUSE OF A DEMOLITION PERMIT A COUPLE OF YEARS BACK AND I WAS NOT WILLING TO SUPPORT THAT DEMOLITION PERMIT.

SO A COUPLE OF SMALL-SCALE DEVELOPERS WORKED TOGETHER TO CREATE WHAT IS GOING TO BE A MAKER SPACE.

WE HAVE SEEN SOME SUCCESS OF THIS ON THE WEST SIDE WITH WAREHOUSE FIVE THAT'S NOW SHOTGUN COFFEE, WHICH WE HAVE INVITED TO OUR COFFEE SHOP.

AND THAT'S GOING WELL.

WE ALSO KNOW THAT THE PRINT SHOP IS CURRENTLY UNDER CONSTRUCTION.

SO FOR THOSE OF YOU WHO KNOW THE MUNGIA PRINT SHOP, THEY WERE A PRINT SHOP THERE FOR MANY GENERATIONS.

THE BUILDING HAS BEEN VACANT FOR MANY YEARS AND THAT'S UNDER CONSTRUCTION.

WE ALSO HAVE LERMA'S ICE HOUSE, WAITING FOR THE REHABILITATION OF THAT BUILDING INTO A CREATIVE SPACE.

THERE'S GREAT POTENTIAL ON THE WEST SIDE AND I HOPE LEONARD COULD COME UP AND TALK A LITTLE BIT ABOUT WHAT YOU PLAN TO DO WITH THE SPACE, JUST IN TERMS OF WHAT THE REHABILITATION MIGHT LOOK LIKE.

I THINK THERE'S SOME STRUCTURE CONCERNS AND ALSO JUST GETTING THE SPACE UP TO CURRENT CODE IS GOING TO BE QUITE A TASK.

>> HAPPY TO.

THANK YOU, SHIRLEY.

[02:55:03]

MAYOR, COUNCIL MEMBERS, THIS IS A REALLY EXCITING PROJECT FOR THE WEST SIDE DEVELOPMENT CORPORATION.

THE BASILA FROCKS BUILDING HAD BEEN BLIGHTED FOR THE LAST EIGHT YEARS, RUN DOWN.

A REAL EYESORE TO THE NEIGHBORHOOD.

WE WORKED REAL CLOSELY WITH WEST END HOPE IN ACTION TO GENERATE THE COMMUNITY SUPPORT TO TAKE ON THE PROJECT.

WITH WAREHOUSE FIVE, IT'S A REAL SUCCESS STORY THERE ON THE WEST SIDE.

IT WAS ANOTHER SMALLER ABANDONED BUILDING THAT OUR ORGANIZATION TOOK A LOOK AT REHABILITATING.

TODAY THAT IS A JEWEL SITTING ON THE ALAZAN CREEK.

SO WE'RE FOLLOWING THAT SAME METHODOLOGY WITH THE BASILA FROCKS BUILDING.

IT WILL HAVE ABOUT 16 TENANTS, ALL OF THEM MAKERS.

REALLY WHAT WE WERE TRYING TO DO WAS MAKE SURE WE COULD KEEP THE RENTS AFFORDABLE.

WE NOTICED AS HOUSING RENTS INCREASE SO DO COMMERCIAL RENTS.

IT'S IMPORTANT FOR US TO SAVE A HISTORIC BUILDING ON THE WEST SIDE, BRING IT BACK TO LIFE, AND USE IT FOR COMMERCIAL PURPOSES TO HELP UPLIFT OUR COMMUNITY.

IF YOU HAVE ANY OTHER QUESTIONS, I'LL BE HAPPY TO ANSWER THEM.

>> GONZALES: THANK YOU, LEONARD.

IT IS AN EXCITING TIME TO BE ON THE WEST SIDE OF SAN ANTONIO.

SO I HOPE THAT THE SPACE IS AVAILABLE TO CREATIVE TYPES.

I KNOW THAT I BRAG ABOUT OUR COMMUNITY ALL THE TIME ABOUT BEING A VERY CREATIVE ENTREPRENEURIAL COMMUNITY.

AND WE WANT TO MAKE THIS SPACE AVAILABLE FOR THOSE PEOPLE.

WE HOPE THAT THEY OCCUPY THE SPACE AND CONTINUE TO FEEL SAFE THERE.

SO IT IS A VERY BLIGHTED CORNER.

I KNOW THERE HAVE BEEN BODIES, DEAD BODIES FOUND.

THERE HAVE BEEN SOME FIRES ALSO.

SO IT IS GOING TO BE A MAJOR REHABILITATION PROJECT AS WELL, JUST FOR THE PHYSICAL SPACE.

IT WAS SLATED TO BE A DOLLAR GENERAL.

SO I FEEL LIKE THIS WAS A GREAT TRANSFORMATION.

AND WE'RE ALL LOOKING FORWARD TO IT AND WE HOPE THAT IT GOES AS SMOOTHLY AS THE TIMELINE SHOWS.

ABOUT ONE YEAR IS WHAT YOU'RE SHOWING FOR THE PROGRESS.

SO I HOPE IT MOVES AT THAT PACE.

AND MOTION TO APPROVE.

>> MAYOR NIRENBERG: THERE'S A MOTION AND A SECOND FOR APPROVAL OF ITEM NO. 20.

COUNCILWOMAN VIAGRAN.

>> VIAGRAN: THANK YOU, MAYOR.

COUNCILWOMAN GONZALES, I JUST WANTED TO COMMEND YOU.

THIS IS A GREAT, GREAT OPPORTUNITY HERE AND I HAVE BEEN TO SHOTGUN ROASTERS.

THAT IS PHENOMENAL AS WELL.

SO I'M EXCITED TO SEE HOW THE CONTINUED MOMENTUM IS HERE.

WE IN DISTRICT 3 ARE GOING TO BE LOOKING AT THIS MODEL AS WELL, SO THANK YOU VERY MUCH.

AND CONGRATULATIONS.

THIS IS JUST ANOTHER EXAMPLE OF CREATIVE COLLABORATION WITH ALL OF US.

SO THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN VIAGRAN.

COUNCILMAN PERRY.

>> PERRY: THANK YOU, SIR.

JUST WANTED TO ECHO THAT, COUNCILWOMAN GONZALES.

YOU TOOK ME ON THAT TOUR AND POINTED THIS PARTICULAR FACILITY OUT.

AND, YES, IT IS A PRETTY BAD MESS RIGHT NOW AND I'M EXCITED TO SEE THE REHAB AND DEVELOPMENT OF THAT AREA.

AND SPECIAL THANKS TO NRP FOR STEPPING UP AND TAKING THIS PROJECT ON.

AND SO I LOOK FORWARD TO SEEING THIS MOVE FORWARD HERE IN THE FUTURE.

THANK YOU.

THANK YOU, SIR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN PERRY.

COUNCILMAN TREVINO.

>> TREVINO: THANK YOU, MAYOR.

I JUST WANT TO ALSO CONGRATULATE DISTRICT 5, COUNCILWOMAN GONZALES.

LEONARD, THANK YOU AGAIN.

JUST SHOWING WHAT GREAT WORK THAT DC KEEPS DOING ON THE WEST SIDE.

LOOK FORWARD TO GREAT THINGS.

IT'S A BEAUTIFUL BUILDING AND I CAN'T WAIT TO SEE THE RESULTS.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN TREVINO.

I'LL ECHO THOSE SAME STATEMENTS.

THIS IS A GREAT DEMONSTRATION OF HOW WELL PLACED CHAPTER 380 CAN BE TRANSFORMATIVE FOR AN ENTIRE COMMUNITY.

GREAT JOB TO WDC AND OUR ENTIRE STAFF.

GREAT JOB, SHIRLEY.

ALL RIGHT.

THERE'S A MOTION AND A SECOND FOR APPROVAL OF ITEM 20.

[25. Ordinance approving a contract with San Antonio Housing Trust Foundation, Inc. in an amount not to exceed $159,283.00 for a period of 12 months to provide administrative services to the City of San Antonio Housing Trust, San Antonio Housing Trust Public Facility Corporation and San Antonio Housing Trust Finance Corporation, and for the promotion of affordable housing projects and programs throughout the City. Funding is available through interest earned on the City's Housing Trust Corpus. [Peter Zanoni, Deputy City Manager; Veronica R. Soto, Director, Neighborhood & Housing Services]]

PLEASE VOTE.

MOTION CARRIES.

ITEM NO. 25.

>> ITEM 25 IS AN ORDINANCE APPROVING A CONTRACT WITH SAN ANTONIO HOUSING TRUST FOUNDATION INCORPORATED IN AN AMOUNT NOT TO EXCEED $159,283 FOR A PERIOD OF 12 MONTHS TO PROVIDE ADMINISTRATIVE SERVICES TO THE CITY OF SAN ANTONIO HOUSING TRUST, SAN ANTONIO HOUSING TRUST PUBLIC FACILITY CORPORATION, AND SAN ANTONIO HOUSING TRUST FINANCE CORPORATION.

AND FOR THE PROMOTION OF AFFORDABLE HOUSING PROJECTS AND PROGRAMS THROUGHOUT THE CITY.

FUNDING IS AVAILABLE THROUGH INTEREST EARNED ON THE CITY'S HOUSING TRUST CORPUS.

>> MAYOR NIRENBERG: COUNCILWOMAN VIAGRAN.

>> VIAGRAN: THANK YOU, MAYOR.

I WANTED TO PULL THIS ITEM JUST TO KIND OF POINT OUT SOME OF THE ITEMS ON THIS CONTRACT THAT ARE A LITTLE BIT DIFFERENT FROM YEARS IN THE PAST.

AND IT'S BECAUSE WE NEED TO LOOK AT OUR HOUSING STOCK AND OUR

[03:00:02]

DIFFERENT STRATEGIES OF HOUSING COLLABORATIVELY.

THIS IS ONE OF THE THINGS THAT WE'RE LOOKING AT AS WELL WITH OUR HOUSING TRUST.

I KNOW JOHN KENNY AND SOME OF HIS MEMBERS ARE HERE TODAY.

VERO, I KNOW YOU HAVE A POWERPOINT PRESENTATION BUT I WANTED TO JUST GO TO SLIDE NO. 3 WHERE YOU TALK ABOUT THE ISSUES.

AND THESE ARE THE ONLY DIFFERENCES THAT WE'VE HAD IN THE CONTRACT FROM THE YEARS IN THE PAST.

IS THAT CORRECT?

>> THAT'S CORRECT.

>> VIAGRAN: AND ONE OF THE THINGS THAT I JUST WANTED TO MAKE SURE AND SAY ON THE RECORD IS THAT PART OF THIS CONTRACT IS, YES, BECAUSE OF THE ELEMENTS OF THE POLICY FRAMEWORK, TO HAVE THAT ASSESSMENT THAT'S GOING TO BE CONDUCTED, BUT ALSO TO HAVE THE FUNDING -- THE -- NOT THE FUNDING SOURCE, THE ASSESSMENT THAT'S GOING TO BE CONDUCTED AS WELL AS A FORECAST OF WHAT THE AGENDA WILL BE FOR OUR PUBLIC FINANCING CORP. AND THEN THE INVENTORY.

>> THE COORDINATED HOUSING SYSTEM.

>> VIAGRAN: YES, THE COORDINATED HOUSING SYSTEM AND THE INVENTORY THERE.

THAT IS WHAT IS GOING TO BE INCLUDED IN THE NEGOTIATIONS IN THIS CONTRACT RIGHT NOW, IS THAT CORRECT?

>> THAT IS CORRECT, YES, MA'AM.

>> VIAGRAN: WONDERFUL.

THANK YOU.

ONE OF THE THINGS I JUST WANTED TO REITERATE IS ONE GREAT THING ABOUT OUR PUBLIC FINANCE CORP.

IS THE AUTONOMY THAT IT HAS AND THE FLEXIBILITY THAT IT HAS.

BECAUSE IT IS ALLOWING US TO GET THESE AFFORDABLE HOUSING PROJECTS ON THE MARKET IN A MORE RAPID PACE.

AND WE HAVE TO BE FLEXIBLE WITH IT BECAUSE OF THE BANKS, THE LENDERS, AND THE CAPITAL INVESTMENTS.

AND SOME THINGS COME UP VERY QUICKLY THAT WE HAVE TO MAKE SURE THAT WE PUT ON OUR AGENDA.

SO THAT FLEXIBILITY IS IMPORTANT WITH OUR AGENDA AS WELL.

SO WITH THAT, THANK YOU VERY MUCH FOR ALLOWING ME TO TALK A LITTLE BIT ABOUT THIS.

AND I WILL MOTION TO APPROVE.

>> SECOND.

>> MAYOR NIRENBERG: OKAY.

THERE'S A MOTION AND A SECOND FOR APPROVAL OF ITEM NO. 25.

COUNCILMAN COURAGE.

>> COURAGE: THANK YOU, MAYOR.

VERO, LET ME ASK.

I KNOW THAT THIS WAS BEGUN YEARS AGO WITH A $10 MILLION INITIAL INVESTMENT BY THE CITY.

DO YOU HAVE A RECORD OF HOW MUCH HAS BEEN INVESTED IN ADDITION BY THE CITY OVER THE PERIOD OF TIME THAT THE TRUST HAS BEEN IN EXISTENCE?

>> NO, SIR, I DON'T HAVE THAT IN FRONT OF ME BUT WE CAN CERTAINLY GET THAT TO YOU AND THE REST OF THE COUNCIL MEMBERS.

>> COURAGE: OKAY.

DO WE HAVE AN ASSESSMENT OF WHAT THE RETURNS HAVE BEEN TO THE TRUST OVER THAT PERIOD OF TIME? A RECORD OF THAT?

>> AGAIN, I DON'T HAVE THAT INFORMATION FOR THIS PARTICULAR CONTRACT, BUT WE CAN GET THAT FOR YOU AS WELL.

>> COURAGE: DO YOU HAVE IT AT YOUR OFFICE?

>> WE HAVE A LIST OF THE HOUSING UNITS THAT HAVE BEEN PRODUCED.

AND THE VALUATION OF THOSE UNITS.

SO THAT IS SOMETHING WE DO HAVE IN OUR OFFICE.

>> COURAGE: DO WE HAVE LIKE A RECORD OF WHAT THE RETURN HAS BEEN AS FAR AS -- I KNOW SOMETIMES WE HAVE A PERCENTAGE OF OWNERSHIP OF SOME OF THESE PROPERTIES, IF ANY OF THEM HAVE BEEN SOLD OR IF WE'VE GOT ANY KIND OF RETURN ON INVESTMENT, WHAT THAT RETURN HAS BEEN OVER THE YEARS.

>> AGAIN, SIR, I DON'T HAVE THAT INFORMATION HERE BUT IT IS SOMETHING WE CAN LOOK AT AND BRING BACK TO YOU AND THE REST OF THE COUNCIL MEMBERS.

>> COURAGE: WILL WE LEARN MORE ABOUT SOME OF THAT INFORMATION WITH THE CONSULTANT THAT WE'RE BRINGING IN TO TAKE ANOTHER LOOK AT THE WHOLE PROGRAM?

>> YES, SIR.

SO IF IT'S INFORMATION WE CAN'T ASSESS FROM WHAT WE ALREADY HAVE ON RECORD, THAT IS PART OF THE ASSESSMENT.

IT WILL LOOK AT THE RETURN ON INVESTMENT FOR ALL OF THESE AFFORDABLE HOUSING UNITS THAT HAVE BEEN DEVELOPED.

AND SO WE'LL HAVE A LOT MORE INFORMATION AND PERHAPS IT CAN SHOW US WHAT ELSE AND WHAT MORE WE CAN DO WITH THE FLEXIBILITY THAT THE TRUST RELATED ENTITIES CAN PROVIDE.

>> COURAGE: OKAY.

THANK YOU VERY MUCH.

>> THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE.

COUNCILWOMAN VIAGRAN.

>> VIAGRAN: AND JUST FOR THE CLARIFICATION FOR THE COUNCIL MEMBERS, I KNOW OUR PFC AND OUR HOUSING TRUST HAS THAT DATA AND WE CAN ALSO PROVIDE THAT TO OUR COUNCIL COLLEAGUES.

THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN VIAGRAN.

THERE IS A MOTION AND A SECOND FOR APPROVAL OF ITEM NO. 25.

PLEASE VOTE.

[26. Ordinance approving a Development Agreement in an amount not to exceed $680,000.00 in Midtown Tax Increment Reinvestment Zone (TIRZ) funds with Broadway Jones Apartments LP for the Broadway Jones Apartment project located at 1011 Broadway Street within the Midtown TIRZ. [Peter Zanoni, Deputy City Manager; Veronica Soto, Director, Neighborhood and Housing Services]]

MOTION CARRIES.

ITEM NO. 26.

>> YES, SIR.

ITEM NO. 26 IS AN ORDINANCE APPROVING A DEVELOPMENT AGREEMENT IN AN AMOUNT NOT TO EXCEED $680,000 IN MIDTOWN TAX INCREMENT REINVESTMENT ZONE TIRZ FUNDS WITH BROADWAY JONES APARTMENTS LP FOR THE BROADWAY JONES APARTMENT PROJECT LOCATED AT 1011 BROADWAY STREET WITHIN THE MIDTOWN TIRZ.

>> COURAGE: DO WE HAVE A PRESENTATION?

>> YES, WE HAVE A PRESENTATION.

IF THAT COULD BE PUT ON THE SCREEN, PLEASE.

GOOD AFTERNOON, VERO WITH THE NEIGHBORHOOD AND HOUSING SERVICES DEPARTMENT.

THE ITEM BEFORE YOU IS A

[03:05:03]

DEVELOPMENT AGREEMENT UTILIZING TIRZ FUNDS NOT TO EXCEED $680,000 FOR A PROJECT KNOWN AS THE BROADWAY JONES APARTMENT, WHICH IS LOCATED IN THE MIDTOWN TIRZ WITHIN COUNCIL DISTRICT 3.

THE PROPOSED DEVELOPMENT IS A FIVE-STORY MULTI-FAMILY RESIDENTIAL DEVELOPMENT CONSISTING OF 283 MULTI-FAMILY UNITS, 142 OF THOSE ARE PROPOSED TO BE AFFORDABLE FOR FAMILIES EARNING 80% OR BELOW OF THE AREA MEDIAN INCOME.

AND THE BALANCE OF THOSE UNITS ARE MARKET-RATE UNITS.

THE SITE IS AT 1011 BROADWAY STREET.

AGAIN, IN COUNCIL DISTRICT NO.

THE SITE IS 2.75 ACRES IN SIZE.

IT WILL ALSO INCLUDE A PARKING GARAGE WITH 447 SPACES AND ABOUT 14,500 SQUARE FEET OF RETAIL AND OFFICE SPACE.

THE TOTAL DEVELOPMENT COST FOR THIS IS GOING TO BE $57 MILLION, WITH CONSTRUCTION PROPOSED TO START IN JANUARY OF 2019 AND COMPLETION OF THE DEVELOPMENT IN FEBRUARY OF 2021.

THE TIRZ FUNDING THAT IS THE ITEM OF THE DEVELOPMENT AGREEMENT IMPROVEMENTS SO THAT THE OVERHEAD UTILITY LINES ARE UNDERGROUND.

THIS IS LOCATED IN AN AREA THAT HAS SEEN A LOT OF NEW MULTI-FAMILY DEVELOPMENT, AND THIS WILL BE ONE OF THE AFFORDABLE MARKET RATE MIXED USE DEVELOPMENTS IN THAT AREA.

WITH REGARDS TO THE TIRZ FUNDING, THE $680,000 IS PROPOSED TO COME FROM THE MIDTOWN TIRZ FUND, SO THAT WILL NOT HAVE AN IMPACT ON THE GENERAL FUND, THOUGH THE DEVELOPMENT IS GETTING ADDITIONAL INCENTIVES.

THE CITY IS THE ONLY PARTICIPATING TAXING ENTITY WITHIN THE MIDTOWN TIRZ WHERE THIS IS LOCATED.

AGAIN, BECAUSE THIS IS GOING TO HELP PROMOTE LOCAL ECONOMIC DEVELOPMENT, FURTHER THE DEVELOPMENT OF AFFORDABLE HOUSING IN WHAT WE KNOW AS A SUBMARKET WITH HIGH RENTS, STAFF IS RECOMMENDING APPROVAL OF THE TIRZ DEVELOPMENT AGREEMENT IN THE AMOUNT OF $680,000.

AND THAT CONCLUDES THE PRESENTATION, UNLESS Y'ALL HAVE ANY QUESTIONS.

THANK YOU.

>> COURAGE: THANK YOU, VERO.

I WOULD LIKE TO RECOGNIZE COUNCILMAN SALDANA.

>> SALDANA: THANK YOU, MAYOR PRO TEM.

VERO, THANK YOU FOR THE PRESENTATION.

JUST TO MAKE SURE WE KNOW EXACTLY WHAT ARE THE IMPLICATIONS OF TODAY'S VOTE, TODAY'S VOTE IS ON AGREEMENT WITH THE TIRZ.

THE OTHER ELEMENTS OF INCENTIVE FOR THIS PROJECT, IN PARTICULAR, ARE THE CITY FEE WAIVER, SAWS FEE WAIVER, AND I THINK THERE'S ANOTHER COMPONENT, THE FORGIVABLE MIXED USE LOAN BY THE CITY.

THOSE ARE NOT AT QUESTION FOR TODAY?

>> NO.

THE ITEM IS FOR THE TIRZ FUNDED ITEMS HERE.

>> SALDANA: IF I CAN DESCRIBE IT THIS WAY, THERE'S ESSENTIALLY FOUR DIFFERENT COMPONENTS AND THE THREE THAT I DESCRIBED FOR WAIVERS OR INCENTIVES ARE THE CITY FEE WAIVER, THE SAWS FEE WAIVER, AND FORGIVABLE MIXED USE LOAN.

THE FOURTH COMPONENT IS THE TIRZ AGREEMENT.

AND THAT'S ON TOP OF THE EXISTING INCENTIVES.

IS THAT RIGHT?

>> THAT'S CORRECT.

>> SALDANA: OKAY.

AND I GUESS WITH THOSE FOUR COMPONENTS, HERE'S SORT OF WHERE I'M GETTING AT.

I WANT TO MAKE SURE THAT WE KNOW EXACTLY WHAT PUBLIC INCENTIVES OR PUBLIC DOLLARS ARE GETTING IN EXCHANGE.

AND WITH FOUR DIFFERENT COMPONENTS I DON'T KNOW WHICH TO ATTACH IT TO.

WE'RE GETTING THE AFFORDABLE UNITS, WHICH IS A LAUDABLE GOAL FOR US TRYING TO GET AFFORDABILITY IN ANY PART OF THE CITY, SPECIFICALLY DOWNTOWN, WHERE ARE WE GET THE AFFORDABLE UNITS? IS THAT COMING FROM THE TIRZ OR THE OTHER THREE INCENTIVES?

>> THIS IS ALSO A PARTNERSHIP WITH A PUBLIC FACILITY CORPORATION.

SO THAT PARTNERSHIP IS WHY WE'RE ABLE TO GET THE AFFORDABLE UNITS FOR THIS PARTICULAR DEVELOPMENT.

TO MAKE IT PENCIL OUT THE ADDITIONAL INCENTIVES WERE PART OF THAT, BUT THE PARTNERSHIP WITH THE PFC, THE INCENTIVES THAT ARE LISTED IN ONE OF THE SLIDES I MENTIONED, AND INCLUDING THE TIRZ FUNDING IS GOING TO HELP WITH THAT AFFORDABILITY.

THE AFFORDABILITY TERM FOR THESE UNITS IS A 75-YEAR TERM.

AND WITH THE FLEXIBILITY THAT THE PFC DOES HAVE, THERE IS OWNERSHIP FROM THE PFC AND THE DEVELOPMENT.

THAT IS PART OF THE REASON THAT THE UNITS ARE AFFORDABLE AND THAT ENABLES THESE 80% AMI UNITS TO REMAIN AFFORDABLE FOR THAT TERM OF TIME.

>> SALDANA: SO BECAUSE THE PFC IS AT THE TABLE, THERE IS A REQUIREMENT BECAUSE THE PFC HAS BEEN INVITED TO THE TABLE, WHICH IS THAT 50% MUST BE AFFORDABLE.

>> CORRECT.

[03:10:01]

>> SALDANA: BUT THAT DOESN'T NECESSARILY MEAN THAT THEY'RE TIED TO THE FOUR COMPONENTS THAT WE DISCUSSED.

>> THE REST OF THE INCENTIVES HELP TO MAKE THE DEVELOPMENT PENCIL OUT.

AND THE PFC HAS THAT REQUIREMENT THAT HALF THE UNITS BE AFFORDABLE.

AND THERE ARE OTHER FOLKS HERE THAT CAN HELP ADDRESS THE INCENTIVES THE PFC EXECUTIVE DIRECTOR IS HERE AS WELL.

>> SALDANA: WE'RE TALKING ABOUT THE TIRZ.

THE TIRZ CAN ONLY BE USED ON SPECIFIC THINGS.

AND WE HAVE OVERTIME -- OUTLINED THEM HERE.

I'LL READ THEM OUT LOUD.

THE OVERHEAD POWER IMPROVEMENTS AND STREET IMPROVEMENTS ON BROADWAY AND TENTH.

>> CORRECT.

>> SALDANA: AND THE SITE ASSESSMENT.

SO THREE COMPONENTS.

THAT'S WHAT THE TIRZ DOLLARS, THE 600 --

>> $680,000.

>> SALDANA: IS GOING TO.

>> CORRECT.

>> SALDANA: AND WE'RE SAYING THAT'S PART OF A LARGER POOL THAT IS GETTING TO TELL THE WHOLE PICTURE OF AFFORDABILITY AS AN OPTION HERE.

>> YES, SIR.

>> SALDANA: OKAY.

I WANT TO KIND OF TALK ABOUT THE AFFORDABILITY OPTION.

BECAUSE THIS WAS BEFORE WE HAD A MAYOR'S HOUSING POLICY TASK FORCE, THIS WAS BEFORE WE STARTED TO GET A LITTLE SMARTER AND SHARPEN OUR PENCILS AROUND THE DEFINITION OF AFFORDABILITY.

IF YOU OR SOMEONE ELSE CAN HELP ME WITH THIS DISCUSSION, 80% AMI, IS THAT ATTACHED TO THE HUD DEFINITION, WHICH IS SOMETHING LIKE 66,000?

>> GOOD QUESTION, SIR.

SO I'LL TALK A LITTLE BIT ABOUT THE TIMELINE AND TALK ABOUT THE 80% AMI AFFORDABILITY AS WELL.

SO THIS PARTICULAR DEVELOPMENT, THE DISCUSSIONS AROUND IT STARTED BACK IN AUGUST 2017.

THAT'S WHEN THE FIRST PROPOSA

>> THAT'S WHEN THE FIRST PROPOSAL TO BRING THIS FORWARD WAS BROUGHT.

THAT'S WHEN THE FINANCING WAS COMING INTO PLACE.

AND SO AT THAT POINT IN SEPTEMBER OF 2017 IS WHEN THE DEVELOPER FOR THE C CHIP INCENTIVES, THAT'S AROUND THE TIME THAT THE MAYOR'S HOUSING POLICY TASK FORCE WAS CREATED, AND SO THIS STARTED BEFORE THE CONVERSATIONS AND THE DATA ABOUT WHAT IS AFFORDABLE IN OUR COMMUNITY WENT IN PLACE.

SO THERE ARE APPLICATIONS FOR THOSE INCENTIVES OR APPLICATIONS BEFORE THE PFC STARTED BEFORE WE HAD THE VERY DEEP CONVERSATIONS ABOUT AFFORDABILITY IN OUR COMMUNITY, AND SO BECAUSE THEY STARTED AT THAT POINT, THEY DID USE THE 80% AMI HUD LIMITS, SO THAT'S THE METROPOLITAN STATISTICAL AREA LIMITS.

IT IS THE STANDARD THAT IS UTILIZED BY HOUSING PROVIDERS.

AND SO THOSE ARE THE NUMBERS THAT THEY USED TO MAKE THIS WORK.

AND THEIR COMMITMENT IS TO CONTINUE TO USE THOSE THAT THE 80% AREA MEDIAN INCOME BE THE BENCHMARK, IF YOU WILL.

WE KNOW THAT NUMBER CHANGES OVER TIME.

IF THE AREA MEDIAN INCOME GOES UP OR DOWN, AND SO COMMITMENT IS TO KEEP THAT.

THEY -- DO HAVE QUALIFIED FAMILIES IN THE APARTMENTS THAT THEY KEEP THE UNITS AFFORDABLE BASED ON THE INCOME OF THOSE FAMILIES.

SO THE RENTS THE FAMILIES HAVE TO QUALIFY WILL PAY OVER TIME WILL BE NO MORE THAN THE 35% BENCHMARK.

AND SO EVEN THOUGH TO QUALIFY YOU HAVE TO BE BELOW 80% AMI, ONCE YOU'RE IN THE BUILDING, YOUR RENT CAN ONLY GO AS HIGH TO NOT EXCEED THAT 35% OF YOUR INCOME.

SO IF A FAMILY THAT MAKES LESS THAN 80% AMI IS THERE, THEY'LL HAVE THAT LIMITATION.

THAT'S PART OF THE PFC.

SO THE TIMELINE WAS BEFORE WE HAD THE DEEP CONVERSATIONS WITH THE MAYOR'S POLICY TASK FORCE WITH THE RECOMMENDATION FOR MULTIFAMILY UNITS IS THAT WE LOOK AT 60% AMI FOR MULTIFAMILY AND PROVIDE MORE UNITS THERE.

SO I DID WANT TO ADDRESS THOSE TWO ITEMS TO ANSWER YOUR QUESTION.

>> SALDAÑA: THANK YOU.

AND I THINK THE POINT I'M TRYING TO DRIVE TO IS THIS WAS A PROJECT THAT IS A FEW -- MAYBE A YEAR OR TWO -- YEAR AND A HALF IN THE MAKING, BUT WE ARE CHANGING THE WAY WE DO BUSINESS.

AND I DON'T THINK YOU'LL GET A DISAGREEMENT FROM ANYBODY ABOUT THAT BEING THE CASE FOR AFFORDABILITY AND HOW WE DEFINE AFFORDABILITY.

WE'RE CHANGING THE COURSE OF BUSINESS ON C CHIP.

THE MAYOR ISSUED THE MORATORIUM A WHILE AGO TO MAKE SURE WE'RE NOT GIVING INCENTIVES TO PROJECTS THAT DON'T NEED THEM, AT LEAST THAT'S THE GOAL THAT WE'RE TRYING TO PUSH FOR, BUT IT'S IMPORTANT THAT WE UNDERSTAND THAT THIS PROJECT IS LIVING UNDER A DIFFERENT SET OF EXPECTATIONS, BECAUSE IN THE FUTURE -- BECAUSE WHAT I WOULD ASK FOR THIS PROJECT, IF IT WERE POSSIBLE, AND LET'S JUST DO SOME THEORETICAL, SAY I DON'T LIKE THIS PROJECT, I DON'T LIKE THE TIRZ, I'M GOING TO VOTE IT DOWN, LET THESE FOLKS GO BACK TO THE DRAWING BOARD AND GIVE US 60% OF AMI BASED ON A SAN ANTONIO MSA -- OR SAN ANTONIO, NOT AN MSA.

>> THE CITY LIMITS.

[03:15:02]

>> SALDAÑA: HERE'S THE DIFFERENCE.

THAT DEFINITION IS 66,000.

ASSESSMENT THAT THE MAYOR'S HOUSING TAX -- TASK FORCE IS 49,000.

THIS IS WHAT WE'RE GOING TO PASS, AND I IMAGINE THAT WILL BE THE CASE, SO TO SPEAK TO AFFORDABILITY, LET'S IMAGINE A FAMILY WANTS TO GO INTO A TWO-BEDROOM MARKET RATE APARTMENT HERE, OR TWO-BEDROOM, MAYBE THERE'S A DIFFERENCE HERE, BECAUSE I'M READING A TWO-BEDROOM APARTMENT IS GOING TO COST AN AVERAGE WENT OF 2,047.

IS THAT ON THE MARKET SIDE?

>> YES, SIR.

>> SALDAÑA: WHAT'S THE AFFORDABILITY FOR THE MARKET SIDE?

>> I DO HAVE THAT.

SO THE AFFORDABLE RENTS, THE AVERAGE RENT WOULD BE 1,128.

>> THERE ARE NO TWO BEDROOMS.

>> YES.

BUT THE AVERAGE RENT FOR THE AFFORDABLE UNIT IS 1,128.

MOST OF THE AFFORDABLE UNITS ARE ONE BEDROOMS, BUT THAT IS THE AVERAGE RENT FOR THE AFFORDABLE UNITS, THE 1,128 COMPARED TO THE MARKET RATE UNITS WHERE THE AVERAGE RENT FOR THOSE IS 1,966.

SO ABOUT AN $800 DIFFERENCE ON AVERAGE.

>> SALDAÑA: AND LET ME SAY AGAIN WHAT I SAID AT THE BEGINNING.

THIS IS -- THIS IS NOT A BAD PROJECT.

WE'VE GOT 50% AFFORDABLE, DRILLED DOWN FOR THAT, THE QUESTION IS, WHAT IS AFFORDABLE.

AND I WOULD PREFER TO SEE SOME UNITS AT 80% OF AMI AT THE CITY'S DEFINITION OF 49,000.

>> RIGHT.

>> SALDAÑA: WE'RE NOT 80% OF THE 66,000 NUMBER, WHICH INCHES THAT U, AND I'D ALSO LIKE TO SEE SOME CARVE OUTS FOR 60% OF AMI.

ALL THAT TO SAY THAT IN THE FUTURE, I HOPE THAT WHEN WE'RE PARTNERING WITH A PFC, BRINGING IN PUBLIC INVESTMENTS, WHEN WE'RE DOING TIRZ, THAT WE EXTRACT VALUES OUT OF THAT TIRZ, BECAUSE TIRZ REALLY IS, WA WE'RE GOING TO DO IS TAKE THE RISE IN PROPERTY VALUES AND REINVESTS INTO THE SAME ZONE.

WHEN WE GET THAT EXTRA INCREMENT AND PUT IT BACK INTO THESE PROJECTS, I WOULD HOPE WHAT WE'RE REALLY GETTING IS TRUE AFFORDABILITY.

>> TRUE.

>> SALDAÑA: AND THAT TRUE AFFORDABILITY BY DIRECTION OF THE MAYOR'S HOUSING TASK FORCE WHICH IS A SMART DIRECTION TO LOOK AT THE U.S. AMERICAN SURVEY, WHICH IS THE NUMBER THAT MIGHT INCH UP BUT IT CERTAINLY ISN'T AT 66,000.

>> I CAN TELL YOU IN CONVERSATIONS WITH THE PFC, WE HAVE TALKED ABOUT 60% TO UTILIZE TO BUY DOWN THE RENTS.

THERE WAS A CALCULATION IN THIS ONE -- I DON'T THINK IT'S FINISHED BECAUSE THE CONVERSATION IS ONGOING -- BUT MOVING FORWARD, OUR DEPARTMENT, THE PFC IS LOOKING AT HOW DO WE GET MORE UNITS AFFORDABLE AT THE 60% AMI RANGE, WHICH IS CLOSER TO WHAT WE KNOW IN THE CITY LIMITS IS AFFORDABLE FOR US CITIZENS.

SO THOSE CONVERSATIONS ARE BEING HELD AND GOING FORWARD, THAT'S PART OF WHAT'S BEING INCORPORATED INTO THE MODELS.

OVER A YEAR, GETTING READY TO CLOSE AND START CONSTRUCTION, THAT DIDN'T QUITE MAKE THAT, EVEN THOUGH THE CALCULATION SHOWS IF THEY HAVE MORE OF THOSE UNITS THEY MIGHT NEED MORE INCENTIVES MOVING FORWARD.

>> SALDAÑA: I THINK THAT'S THE IMPORTANT PART.

THEY MIGHT NEED MORE INCENTIVES.

AND WE AS A COUNCIL, OR ME SPECIFICALLY, BELIEVES WE SHOULD PROVIDE THAT.

SO LET ME ASK THE QUESTION TO ANYBODY WHO'S HERE WHO CAN HELP ANSWER IT.

IN THIS PROJECT, IF WE HAD A TIME MACHINE AND WENT BACK, INCLUDING THE TIRZ AS THE AGREEMENT, INCLUDING THE THREE COMPONENTS OF CITY INCENTIVES, WHAT WOULD IT HAVE TAKEN TO GET US 60% AMI ON THE PROJECT?

>> SURE.

I THINK --

>> SALDAÑA: BECAUSE SOMETIMES, I BELIEVE, WE DON'T GET SOMETHING BECAUSE WE JUST DON'T ASK FOR IT.

SO WHAT IF I WAS ASKING FOR 60% AMI.

>> STAFF DID LOOK AT THAT EARLY ON ABOUT A YEAR AGO.

WE'VE BEEN WORKING ON THIS PROJECT FOR ABOUT TWO YEARS.

THEY CAME TO US WITH THE PFC, BECAUSE IT HAD ALREADY BEEN APPROVED AND WE ASKED THEM, CAN YOU LOOK TO SEE WHAT IT WOULD TAKE TO MAKE 10% OF THOSE 50% UNITS 60%? AND SO THEY CAME BACK WITH A GAP OF $1.85 MILLION IN CASH, AND THAT WAS ON TOP OF THE C CHIP INCENTIVES THAT WERE ALREADY THERE.

SO THIS PROJECT IS VERY CHALLENGED BECAUSE IT HAS A LOT OF SITE IMPROVEMENTS THAT ARE NECESSARY, IT ALSO HAD SOME ENVIRONMENT ISSUES THEY HAD TO CLEAN UP, AND SO IT ALREADY HAS SOME FINANCIAL CONSTRAINTS TO IT.

AND WE ASKED THEM TO COME BACK AND LOOK AT THAT 10% REQUIREMENT, IT WAS ADDITIONAL $1.85 MILLION IN CASH.

>> SALDAÑA: A LOT OF THESE PROJECTS, LORI, ARE BUT FOR, BUT FOR THE CITY'S COMING IN, IT WOULDN'T HAPPEN.

WHAT'S YOUR PREDICTION ON A PROJECT LIKE THIS IF WE HOLD THE LINE AND SAY, YOU KNOW WHAT? IF YOU CAN'T MAKE THAT GAP WORK, ONE OF TWO THINGS IS POSSIBLE:

[03:20:01]

THE PROJECT DOESN'T HAPPEN AT ALL OR YOU TELL US HOW MUCH MORE IT NEEDS.

>> HOUSTON: THIS PROJECT WOULD NOT HAPPEN WITHOUT THE CITY INCENTIVES.

IT HAS TOO MANY CONSTRAINTS ASSOCIATED WITH THE ENVIRONMENTAL AND THE UTILITY BURIAL AND THE OTHER PUBLIC IMPROVEMENTS THAT ARE NECESSARY.

AND SO NRP WOULD NOT BE ABLE TO DO THIS PROJECT.

>> SALDAÑA: SO I THINK THAT'S ONE ALTERNATIVE, THAT'S TRUE.

THE PROJECT WILL NOT HAPPEN.

I ALSO THINK IF THE CITY CAME TO THE TABLE WITH MORE OPPORTUNITY, MORE MONEY, MORE RESOURCES, MORE OF AN AGREEMENT ON THE TIRZ, THAT THEY MIGHT GET MORE CREATIVE.

IS THAT SOMETHING THAT YOU AGREE.

>> HOUSTON: IF THE CITY HAD ADDITIONAL $1.85 MILLION IN CASH TO PROVIDE THE CASH.

>> SALDAÑA: OR THE PFC.

>> HOUSTON: OR THE PFC, THEY COULD MAKE THAT 60%.

WE DON'T HAVE -- THE INNER CITY INCENTIVE FUNDS DOES NOT HAVE ENOUGH MONEY.

WE RECEIVE $2 MILLION ANNUALLY AND THAT GOES TO PROJECTS LIKE THE PROJECT WE JUST APPROVED, WGC AND OTHER ENTITIES THAT WE SUPPORT, WE DO NOT HAVE A POT OF FUNDING TO HELP WITH THAT AFFORDABILITY GAP.

>> SALDAÑA: WE'LL RULE THAT OUT.

WE DO LOOK AT THE PFC FOR OTHER ALTERNATIVES TO MAKE THAT WORK.

IS IT POSSIBLE TO CONSIDER THAT THE PFC MIGHT BE AN ALTERNATIVE WHEN WE'RE TRYING TO FIND THOSE GAPS? I THINK IN THE FUTURE, WE REALLY ARE GOING TO WANT TO PUSH FOR 60% AMI, NOT 50% OF THE UNITS, BUT MAYBE 25.

DO YOU SEE THE PFC AS AN OPTION FOR THAT?

>> HOUSTON: THAT IS SOMETHING THAT THE PFC HAS BEEN LOOKING AT, THAT IS VERONICA SOTO DISCUSSED, LOOKING TO SEE HOW THEY COULD CREATE A TIER OR BUY-DOWN SYSTEM ONCE THEY CAN SEE HOW THE RENTS AND PROJECTS PERFORMS. THAT IS A PATH THEY'RE LOOKING AT.

>> SALDAÑA: I'LL WRAP UP HERE.

THE LAST POINT, THINKING ABOUT A PROJECT, I CAN'T RECALL THE NAME OF IT, IT WAS WRITTEN ABOUT A 9% TAX CREDIT WHERE WE'RE GOING TO HAVE 60% AMI UNITS IN IT, THAT'S A STATE GRANT OR OPPORTUNITY TO GET TO 9%.

>> HOUSTON: YES.

>> SALDAÑA: IN THAT PROJECT -- AT THE TAX CREDIT.

>> HOUSTON: YES.

SO THE 9% TAX CREDIT, WE ARE WORKING ON ONE RIGHT NOW, WHERE THERE IS SEVERAL LEVELS OF AFFORDABILITY THAT ARE STACKED.

IT'S ABOUT 100 UNITS, AND IT HAS CUTS AS LOW AS 30% AMI, BUT THE TAX CREDIT PROVIDES AT 9% OF THE PROJECT COST ANNUALLY FOR A 10-YEAR PERIOD.

AND THEN THE CITY INCENTIVES HELP WITH THAT PROJECT AS WELL, SO IT'S A STACKING OF OUR INCENTIVES THAT HELP PROVIDE THIS DEEPER AFFORDABILITY.

SO THE C CHIP, WHEN PARTNERED WITH A PFC OR PARTNERED WITH A TAX CREDIT PROJECT CAN HELP WITH THAT GREATER AFFORDABILITY.

>> SALDAÑA: SO I THINK WHAT THAT TELLS ME IS THAT WITH ENOUGH CREATIVITY AND ENOUGH OPTIONS, THE STATE IS COMING TO PLAY ON THESE THINGS, WE ARE ABLE TO DRIVE AFFORDABILITY, EVEN TO THE LEVEL OF A 60% AMI PROJECT.

IN THIS CASE, WHAT I WANTED WITH THIS DISCUSSION WAS TO AT LEAST INFORM THE FUTURE OF PROJECTS THAT IF THE STATE IS NOT AVAILABLE, MAYBE THE CITY'S INCENTIVES BECOME OPTIONS, AND I THINK THEY HAVE BEEN THROUGH C CHIP.

AND WHEN THOSE ARE COMBINED WITH SOMEONE LIKE THE PFC, WE SEE WE CAN DRIVE AFFORDABILITY, IN FACT WE REQUIRE IT 50% WHEN THE PFC COMES TO THE TABLE.

I JUST WANT TO SAY THAT WE'RE CHANGING THE COURSE OF BUSINESS, AND I THINK IT'S AN IMPORTANT THING.

AND I DO THINK WE NEED TO START HOLDING THE LINE ON IMPORTANT ITEMS, 60% AMI, USING THE 49% -- 49,000AMI VERSUS THE 66,000, BECAUSE I THINK IT HAS IMPLICATIONS FOR AFFORDABILITY IN OUR DOWNTOWN, SO WHEN WE EXPAND THAT AFFORDABILITY, WE DRIVE DOWN RENTS BY USING INCENTIVES FOR DOLLARS, STATE OR OTHERWISE, AND I THINK I WANT TO MAKE SURE THAT WE CAN GET CREATIVE WHEN THE STATE ISN'T ABLE TO COME TO PLAY, BECAUSE THERE IS A TON OF APPLICATION AND A TON OF APPETITE FOR THE 9%, BECAUSE THERE'S ALWAYS GOING TO BE 50 APPLICATIONS AND FOR EVERY ONE, THE NUMBER'S PROBABLY HIGHER.

I ALWAYS WANT TO KNOW WHAT THE CITY COULD DO TO REPLACE, BECAUSE WE HAVE SUCH A PIPELINE OF PROJECTS THAT WANT THAT 9%, IF WE CAME TO THEM AND SAID, LOOK, IF YOU BUILD IN THE DOWNTOWN -- BUILD IN THE AREA, WHAT'S THE NUMBER THAT THE CITY WOULD NEED TO COME TO TO MAKE UP FOR A FAILED APPLICATION FOR A 9% OF THE STATE, BECAUSE I REALLY LIKE THAT PROJECT THAT'S OPENING UP.

YOU MUST KNOW IT -- I DON'T KNOW IT OFF THE TOP OF MY HEAD, AT LEAST, LORI, IT'S THE PROJECT BY THE MUSEUM REACH.

>> HOUSTON: IT'S THE MUSEUM RESIDENCE BY ALAMO GROUP.

IT'S A GREAT PROJECT AND IT'S BEEN A PARTNERSHIP WITH THE C CHIP.

>> SALDAÑA: YEAH.

>> HOUSTON: IT'S BEEN A GREAT PARTNERSHIP WITH INNER CITY INCENTIVE FUNDS AS WELL AS C CHIP AND THE TIRZ FUNDS, AND IT'S HELPED IT WORK BECAUSE IT HAS THAT 9% TAX CREDIT COMPONENT IN IT.

>> SALDAÑA: I JUST TRULY THINK THAT'S THE FUTURE OF A DOWNTOWN THAT YOU REALLY WANT TO CALL VIBRANT, BECAUSE YOU HAVE FOLKS

[03:25:02]

PAYING, YOU KNOW, $1,500 A UNIT, BUT YOU ALSO HAVE FOLKS PAYING $300 A UNIT.

THAT'S THE SERVICE INDUSTRY WORKER, THAT'S SOMEBODY WHO'S A NURSE AT THE HOSPITALS DOWNTOWN, SO THAT'S MY ONLY POINT.

I THINK WE CAN GET FOLKS TO GET A LITTLE MORE CREATIVE WHEN WE ASK THEM TO, AND I THINK WE'RE GETTING THERE AND THROWING OUT THE OLD PLAYBOOK, SO THOSE ARE MY QUESTIONS AND CONCERNS ABOUT THIS, JUST TO MAKE THE CASE ON A SPECIFIC ITEM THAT HELPS US UNDERSTAND THE FUTURE.

THANK YOU.

>> MAYOR PRO TEM: THANK YOU, COUNCILMAN.

COUNCILMAN TREVINO?

>> TREVINO: THANK YOU, MAYOR PRO TEM.

I DO WANT TO TALK A LITTLE BIT ABOUT THIS, I THINK IT'S IMPORTANT TO BE CREATIVE BUT IT'S ALSO IMPORTANT TO BE REALISTIC.

LET'S TALK A LITTLE BIT ABOUT WHAT THESE INCENTIVES ARE PROVIDING.

THIS IS SOME RIGHT OF WAY IMPROVEMENTS.

WHO CAN ANSWER -- HOW ARE THEY DOVETAILING WITH THE BUN IMPROVEMENTS FOR BROADWAY?

>> SO THE MIDTOWN TIRZ 4 IS VERY ACTIVE IN MANY OF THE PUBLIC MEETINGS AND COMMITTEES THAT PERTAIN TO THE BROADWAY CORRIDOR IMPROVEMENTS, SO THEY HAVE HAD DISCUSSIONS ABOUT THAT.

AND ALL THE COORDINATION WOULD HAVE BEEN WITH THE TCI STAFF THAT'S DOING THAT, SO THERE'S A LOT OF COORDINATION AND A LOT OF INTEREST FROM THE MID TOWN TIRZ BOARD THAT THOSE ENHANCEMENTS WITH THE BOND HELP THE OVERALL ECONOMIC DEVELOPMENT OF THE AREA.

SO THERE'S A LOT OF CONVERSATIONS.

>> TREVINO: SO THERE'S A LOT OF COORDINATION.

>> YES, SIR.

TREIVES I THINK THAT'S --

>> TREVINO: I THINK THAT'S ALSO CRITICAL.

I THINK IT'S ALSO HELPFUL THAT WE'RE HELPING TO DIRECT SOME OF THAT, WOULD YOU SAY?

>> WELL, THERE'S A LOT OF COORDINATION AS I'VE STATED AND EVEN THE MIDTOWN TIRZ BOARD WANT TO MAKE SURE THEIR INVESTMENTS ENHANCE THE PROJECTS IN THE BOOKS ALREADY.

>> TREVINO: I JUST WANT TO MAKE SURE WE'RE COORDINATING WITH BOND PROJECTS THAT ARE HAPPENING IN THAT AREA.

I THINK ANOTHER CRITICAL AREA TO POINT TO MAKE, AS WAS POINTED OUT, THESE ARE LAYERED, AND NOT ALL LOCATIONS ARE CREATED ALIKE.

I WANT US TO ALSO BE MINDFUL THAT WE NEED TO LOOK AT AS MUCH OF A COORDINATED EFFORT AS POSSIBLE THAT ALSO INCLUDES THE UNDERSTANDING OF LAND VALUES AND HOW THEY IMPACT AFFORDABILITY.

AND I WANT US -- I WANT OUR DOLLARS TO GO FURTHER IN AREAS WHERE WE'RE LOOKING TO INVEST THOSE PFC DOLLARS, THOSE INCENTIVES, ALSO TAX CREDITS AND SO FORTH.

SO I JUST -- I THINK THAT THIS IS A GOOD PROJECT, BUT IT'S REALLY SHOWING US IS THAT NOT ALL SITES ARE CREATED EQUAL.

AND WE CAN MAKE SURE THAT WE'RE ADDING AN ADDITIONAL UNDERSTANDING OF HOW LAND VALUES ARE PRODUCING -- OR CREATING ADDITIONAL STRESS OR TENSION IN THE ABILITY TO DO MORE AFFORDABILITY.

SO IT NEEDS TO BE PART OF OUR CALCULUS, AND I CERTAINLY, YOU KNOW, AGREE WITH COUNCILMAN SALDAÑA, WE NEED TO LOOK FOR WAYS TO FIND AFFORDABILITY WITHIN THESE PROJECTS.

I JUST THINK WE CAN ALSO BE THOUGHTFUL ABOUT WHERE THAT LOCATION IS.

ONE LOCATION IS NOT NECESSARILY EQUAL TO THE OTHER, AND I THINK THAT IS GOING TO MAKE AN IMPACT.

THAT BEING SAID, I MOTION TO APPROVE ITEM NUMBER 26.

>> MAYOR PRO TEM: A MOTION HAS BEEN MADE AND SECONDED TO APPROVE ITEM NUMBER 26.

COUNCILWOMAN SALDAÑA -- I'M SORRY, COUNCILWOMAN SANDOVAL.

>> SANDOVAL: THANK YOU.

>> MAYOR PRO TEM: I'M NOT TRYING TO MARRY YOU, TOO.

>> SANDOVAL: THANK YOU, MAYOR PRO TEM.

I WILL BE ECHOING SOME OF COUNCILMAN SALDAÑA'S COMMENTS.

BET TO, -- BETO, IF YOU CAN HIKE IT ON UP.

I THINK THIS PROJECT IS VERY EXCITING, THE LOCATION IS VERY ENTICING AND I THINK IT WILL BE BEAUTIFUL ONCE IT'S ALL DONE.

I DID HEAR YOU SAY SOMETHING THAT WAS CONCERNING TO ME.

YOU SAID THAT IN THE FUTURE AS AMI CHANGES, THAT IT WILL -- THE RENTS WILL BE LIMITED TO, YOU SAID 35%.

SO I KNOW -- I THINK THAT THE NUMBER WE WERE USING DURING THE PROCESS OF THE POLICY WAS 30%.

COULD YOU EXPLAIN THE DIFFERENCE?

>> SURE.

I WAS INCLUDING THE TRANSPORTATION COST IN THERE, 35 IS ONCE YOU FACTOR TRANSPORTATION COST INTO THE CALCULATION.

BUT WE KNOW THE DEFINITION OF

[03:30:01]

AFFORDABLE IS THAT NO MORE THAN 30% OF A FAMILY'S INCOME IS GOING TOWARD HOUSING COSTS.

>> SANDOVAL: OKAY.

THANK YOU.

AND THANKS FOR BRINGING THAT UP.

35%.

I KNOW TODAY WE'RE ONLY VOTING ON THE TIRZ PORTION, AND IN THE FUTURE, ACCORDING TO THE MEMO, IT SAYS THE PROJECT WILL APPLY FOR FEE WAIVERS -- FOR CITY FEE WAIVERS AND FOR SAWS FEE WAIVERS AND THE FOR GIVEABLE MIXED USE ZONE.

THOSE WILL COME AT A LATER TIME TO COUNCIL, IS THAT RIGHT?

>> HOUSTON: COUNCILWOMAN, THAT IS ACTUALLY INCORRECT.

THIS WAS ACTUALLY ONE OF THE LAST PROJECTS TO GO THROUGH THE CENTER CITY HOUSING POLICY BEFORE THERE WAS A MORATORIUM.

SO THOSE INCENTIVES WERE PROVIDED, SO THEY WILL RECEIVE THOSE.

FUTURE PROJECTS, ONCE WE COME BACK WITH A C CHIP PROGRAM, THOSE, YOU'LL HAVE TO APPROVE THE NEW POLICY BEFORE WE CAN PROVIDE MORE FEE WAIVERS.

BUT THIS PROJECT ALREADY HAD THE PFC APPROVAL AND IT ALREADY HAS THE CLL CHIP INCENTIVES.

>> SANDOVAL: OKAY.

YES, I'M LOOKING FORWARD TO THAT DISTINCTION ON THAT IN THE FUTURE.

THANK YOU FOR CLARIFYING THAT.

ONE THING THAT I WOULD LIKE TO KNOW, AND YOU MAY NOT HAVE THIS NUMBER OFF THE TOP OF YOUR HEAD, BETO, BUT CERTAINLY AS WE GO FORWARD, YOU MENTIONED THE COST OF TRANSPORTATION IN HOUSING.

THERE'S ALSO A COST OF TRANSPORTATION WHEN WE BUILD AND THE FACT THAT THERE'S A CERTAIN NUMBER OF PARKING UNITS THAT ARE PART OF THIS DEVELOPMENT -- OR PARKING SPACES THAT ARE PART OF THE DEVELOPMENT.

SO EACH UNIT WILL HAVE A SET NUMBER OF PARKING SPACES ASSIGNED TO IT?

>> THE DEVELOPER'S HERE TO ANSWER THAT, BUT THERE ARE 447 PARKING SPACES ATTACHED TO THIS BUILDING, BUT IF THE DEVELOPER CAN TALK ABOUT HOW THE UNITS ARE TIED TO THE PARKING.

>> SANDOVAL: THANK YOU.

>> SURE.

THANK YOU FOR THE QUESTION.

TRAVIS SHEFFIELD WITH THE NRP GROUP.

TO ANSWER YOUR QUESTION ON PARKING, THERE ARE 447 SPACES TOTAL.

THIS IS A MIXED USE DEVELOPMENT, THERE'S ALMOST 15,000 FEET OF RETAIL, AND BASICALLY 387 OF THE 487 -- I'M SORRY, 380 OF THE 447 IS RESERVED FOR THE MULTIFAMILY.

SO EACH UNIT WILL HAVE AT LEAST ONE PARKING SPACE, AND THEN SOME OBVIOUSLY WILL HAVE THE RIGHT TO TWO.

>> SANDOVAL: OKAY.

AND WILL THAT PARKING COST BE A PART OF THE RENT OR WILL THAT BE OPTIONAL?

>> YES, MA'AM.

THE ONE SPACE PER UNIT IS PART OF RENT, AND THEN THE EXTRA SPACE, WE'RE EXPLORING -- I DON'T BELIEVE WE HAVE AN INCOME NUMBER TIED TO IT.

>> SANDOVAL: OKAY.

SO IT'S FUNNY WE JUST APPROVED AN ORDINANCE ON SHORT-TERM RENTALS AND BEING ABLE TO MAKE MONEY FROM SOMETHING THAT YOU HAVE.

SO IF SOMEONE HAS A PARKING SPACE THAT THEY'RE PAYING FOR IN THEIR RENT AND THEY CHOOSE NOT TO USE IT, THEY MAY BE ABLE TO -- YOU PROBABLY WON'T ALLOW THAT IN THE LEASE, RIGHT?

>> THAT'S CORRECT.

>> SANDOVAL: BUT MAY BE ABLE TO RENT THAT OUT IN THE FUTURE, BUT I THINK WHAT WE MAY WISH TO EXPLORE WHEN WE REVISE THE C CHIP POLICY IS GIVING THE RESIDENTS THAT FLEXIBILITY OF, YOU KNOW, NOT NECESSARILY PAYING FOR THAT PARKING SPACE AND SAVING THEMSELVES SOME MONEY IN RENT.

>> IN THIS DEVELOPMENT GIVEN THAT IT'S AN URBAN DEAL AND IT'S BASICALLY THE PARKING PROJECT'S INSIDE OF THE BUILDING ENVELOPE, THERE'S SOME SECURITY ISSUES THAT WOULD HAVE TO BE ADDRESSED THERE, AND OBVIOUSLY SOME MANAGEMENT HEADACHES, BUT THAT'S SOMETHING THAT WE CAN CONSIDER GOING FORWARD.

>> SANDOVAL: THANKS.

I DO HAVE ANOTHER QUESTION.

PERHAPS YOU CAN ANSWER IT.

CAN YOU TELL ME WHAT THE MIX OF THE AFFORDABLE UNITS WILL BE? I APOLOGIZE IF SOMEONE ALREADY ASKED THIS, BETWEEN ONE BEDROOMS, TWO BEDROOMS AND THREE BEDROOMS?

>> SURE.

IN THIS STRUCTURE OF THE PFC, THE ENTIRETY OF THE AFFORDABLE UNITS ARE WITHIN THE ONE-BEDROOM UNIT TYPE.

NOW, THERE'S A MULTITUDE OF SIZES THERE, I HAVE -- THEY START AT 539 SQUARE FEET AND GO UP TO 664.

AND THEN THERE'S, YOU KNOW, A SMALL RANGE OF PRICING DIFFERENCES THERE, BUT THEY'RE IN THE ENTIRETY OF THE AFFORDABLE UNITS ARE IN THE ONE BEDROOMS.

>> SANDOVAL: SO WE LIKELY DON'T EXPECT TO SEE FAMILIES LIVING IN THE AFFORDABLE UNITS, FAMILIES THAT HAVE CHILDREN, THEY WOULD ONLY BE ABLE TO LIVE IN THE MARKET RATE UNITS THEN?

>> THE DEVELOPMENT AS A WHOLE IS NOT NECESSARILY STRUCTURED OR DESIGN TO SERVE FULL-SIZE FAMILIES.

OBVIOUSLY SOME SINGLE PARENTS WOULD BE SERVED QUITE WELL, BUT THEY -- YOU'RE CORRECT IN THAT REGARD.

THERE IS OTHER PROGRAMS THAT THE PFC WORKS WITHIN, NAMELY THE 4% BOND PROGRAM THAT IS MORE

[03:35:02]

STRUCTURED, OBVIOUSLY WOULD USE SOME FEDERAL INCENTIVES THAT WAS TOUCHED ON EARLIER, BUT IT -- THOSE ARE DESIGNED TO SERVE FAMILIES AT A 60% INCOME LEVEL.

>> SANDOVAL: OKAY.

BUT THE WHOLE STRUCTURE ITSELF, IT SOUNDS LIKE YOU'RE SAYING IS REALLY DESIGNED FOR NONFAMILY...

>> WELL, IT'S MORE SO YOUNG PROFESSIONALS, IT'S DOWNTOWN SERVICE WORKERS, TEACHERS, POLICE, FIREMEN THAT TYPICALLY -- YOU KNOW, YOUR PUBLIC SERVANTS THAT YOU WOULD BE SLIGHT SLI OVERCOME FOR TRADITIONAL LAY INCOME HOUSING.

THIS IS A PARTNERSHIP THAT ALLOWS FOLKS THAT ARE TRADITIONALLY NOT SERVED BY NEW HOUSING, ESPECIALLY IN THE LYTEC PROGRAMS TO HAVE AN OPPORTUNITY TO LIVE IN REALLY A TRUE TOP OF THE MARKET APARTMENT COMPLEX.

THIS WILL BE GRANTED I'M BIAS, BUT I BELIEVE THIS WILL BE THE NICEST DEVELOP IN SAN ANTONIO WHEN IT'S DELIVERED.

>> SANDOVAL: RIGHT.

IT SOUNDS LIKE YOU COULD HAVE SAVED YOURSELF 2.6 MILLION IF YOU DIDN'T MAKE IT SO NICE AND WE MAY HAVE FOUND THAT GAP.

>> WELL, THERE'S A BALANCE THERE, IT'S STILL CONVENTION ALLEY FINANCED AND SO YOU HAVE BANKS AND EQUITY PARTNERS SIGNING OFF APPROVING THE MARKET RATE RENTS.

WE'RE ACTUALLY A FINANCIAL PARTNER WITH THE PFC, IT'S IN THE CITY'S BEST INTEREST, THE PROJECT'S BREAST INTEREST AND IN THE PFC BEST INTEREST THAT THOSE MARKET RATES ARE ABLE TO ACHIEVE THE HIGHEST AMOUNT OF INCOME.

>> SANDOVAL: I HAVE ONE LAST QUESTION FOR YOU, BETO.

COULD YOU TELL ME AGAIN ABOUT THE EXPENSE OF THE -- THERE IS A COSAN ANTONIO PROPERTY TAX -- COSA PROPERTY TAX EXEMPTION ON THE PURELY RESIDENTIAL, CAN YOU TELL ME LOUNGE THAT EXEMPTION -- HOW LONG THAT EXEMPTION WILL LAST?

>> THAT'S TO THE PFC ARRANGEMENT, WHICH IS FOR 75 YEARS.

>> SANDOVAL: 75 YEARS WITH THE SAME OWNER AND THE AFFORDABILITY HAS TO.

>> HAS TO MAINTAIN.

>> SANDOVAL: SO THIS HAS ALREADY BEEN APPROVED BY THE PFC, BUT I'M WONDERING, THERE'S NO OPPORTUNITY TO GO BACK IN, SAY, 10 YEARS WHEN MAYBE WE'RE NOT HERE TO LOOK AT LOWERING THAT TO A 60% AMI EVEN THEN?

>> AS TIME GOES ON, YOU CAN LOOK AT BUYING DOWN THE RENTS IN THE FUTURE.

THERE ARE DIFFERENT MODELS WE COME UP WITH.

YOU COULD LOOK AT THAT.

WITHIN OPENING A FEW YEARS AFTER, IF WE FIND A GOOD MODEL THAT CAN HELP US BUY DOWN THE RENTS TO HAVE MORE UNITS AFFORDABLE AT 60% AMI, YOU BOWLD DO THAT, BECAUSE THEY WOULD STILL MEET THE 80% OR BELOW AMI CRITERIA.

>> SANDOVAL: OKAY.

THANK YOU VERY MUCH.

>> COUNCILWOMAN, CAN I MAKE A CLARIFICATION ON -- THERE WAS A STATEMENT ABOUT THE COSA PORTION OF THE TAXES BEING EXEMPT, BUT THE PFC IS TAX EXEMPT, SO ALL TAXES, INCLUDING THE COUNTY TAXES WOULD BE.

>> SANDOVAL: RIGHT.

YOU'RE RIGHT, BUT IN TERMS OF THE PART THAT COMES TO OUR BUDGET, HOW -- WHAT'S THE ESTIMATE ON THAT IN, SAY, LIKE THE FIRST YEAR ONCE IT'S OPERATING?

>> THE AMOUNT ITSELF? I DON'T KNOW WHAT THE AMOUNT WOULD BE.

>> SANDOVAL: OKAY.

ALL RIGHT.

>> BUT SINCE THEY ARE A 501(C)3, THEY'RE TAX EXEMPT.

>> SANDOVAL: THANK YOU VERY MUCH.

THANK YOU MAYOR PRO TEM.

>> MAYOR PRO TEM: LET'S SEE.

COUNCILWOMAN BROCKHOUSE, I BELIEVE YOU'RE UP.

>> BROCKHOUSE: THANK YOU, MAYOR.

REAL QUICK QUESTION FOR THE DEVELOPER, AGAIN, I'M SORRY, MY COLLEAGUE ASKED A QUESTION THAT JUST PIQUED MY INTEREST AND I'M SUPPORTIVE OF THE PROJECT, IT'S NOT THAT.

I'M JUST CURIOUS, SHE SAID SOMETHING AND THEN YOU MENTIONED THAT -- I JUST WANT TO BE CLEAR, 100% OF THESE ARE SINGLE BEDROOM, RIGHT?

>> IN THIS DEVELOPMENT, YES, SIR.

>> BROCKHOUSE: YEAH, OF THE AFFORDABLE UNITS, 100%.

>> THAT WAS HOW I RECEIVED YOUR QUESTION, YEAH.

>> BROCKHOUSE: OKAY.

I -- AND I KNOW THAT THE MAYOR'S HOUSING POLICY TASK FORCE IS VERY IN DEPTH DEAL, LOTS OF PAGES, LOTS OF INFORMATION, JUST A TON OF STUFF.

AND THANK YOU, I JUST WANTED TO CLARIFY THAT POINT.

I JUST WANT TO MAKE SURE THAT JUST GOING FORWARD, I KNOW THIS IS THE LAST OF THE OLD C CHIP, RIGHT, AND THEN WE'RE GOING INTO THE NEW C CHIP IN THE FUTURE, I GET IT, YOU'VE GOT A LOT OF PLANS AN GREAT THINGS GOING, BUT I WILL SAY THAT IT CONCERNS ME THAT THEY'RE ONLY FOR, YOU KNOW, SINGLE PERSONS, RIGHT, OR YOU MENTIONED MAYBE A SINGLE PARENT.

I JUST WANT TO MAKE SURE THAT GOING FORWARD ON THESE DISCUSSIONS, IF WE CAN REVISIT THAT AGAIN ON HOW THAT BREAKS OUT WITH FAMILIES, BECAUSE THERE'S REALLY -- THERE'S A HIERARCHY TO WHERE I WOULD LIKE TO SEE INCENTIVES GO, AND FRANKLY, THE FAMILY AND THAT AFFORDABILITY PIECE RISES HIGHER THAN -- I DON'T KNOW IF I'M EXPRESSING THAT CORRECTLY.

I JUST WANT TO MAKE SURE THAT THE MONEY GOES TO -- IF WE'RE PUTTING THE CASH AND WE'RE INCENTIVIZING, IT'S A CONCERN THAT IT'S 100%, TO ME, SINGLE FAMILY PERSON.

[03:40:01]

YOU KNOW, LIKE I JUST WOULD WANT TO MAKE SURE THAT WE'RE NOT DOING THAT AS MUCH IN THE FUTURE.

IF SOMEONE'S GOING TO BUILD SOMETHING AND WE'RE GOING TO PUT INCENTIVES INTO IT, THEN, JEEZ, IT'S GOT TO HAVE SOMETHING FOR THE FAMILIES, TOO.

I MEAN, THERE ARE TWO-BEDROOM AND THREE-BEDROOM UNITS IN THIS AND THE FAMILIES ARE NOT GOING TO HAVE THAT OPPORTUNITY TO GET THAT SAME QUALITY.

BUT YOU QUOTED IT AS THE BEST DEVELOPMENT IN THE CITY THAT A FAMILY CANNOT LIVE IN, SO THAT IS A PROBLEM.

THAT IN AFFORDABLE CLASSIFIED FAMILY CANNOT LIVE IN.

SO THEY CANNOT HAVE ACCESS TO THE BEST DEVELOPED UNIT IN THE COMMUNITY.

I MEAN, IT'S YOUR BUSINESS MODEL, AND I'M OKAY WITH YOUR MODEL AND I'M OKAY WITH THE VOTE, I JUST THINK THAT, YOU KNOW, EVEN -- LOOK, WE'RE IN THE GAME AND WE'RE GOING TO BE INCENTIVIZING, LET'S NOT LOSE SITE OF THAT, AND THAT'S MAINLY TO VETO AND LORI, I SURE WOULD WANT TO SEE, AT LEAST IF WE'RE GOING TO DO THESE THINGS, THAT FAMILIES HAVE AN OPPORTUNITY TO GET INTO THE BEST OF, TOO.

AND WHILE I'M APPRECIATIVE OF THE YOUNG URBAN PROFESSIONAL GETTING THE INCENTIVE BECAUSE THEY MAKE SLIGHTLY ABOVE, I'M NOT SO SURE THAT'S THE TARGET AUDIENCE I WOULD WANT TO INCENT INITIALLY.

SO TO THE COUNCIL I THINK IT BECOMES A CONVERSATION OF WHO IS THAT TARGET AUDIENCE.

AND IF WE'RE GOING TO PUT THEM IN THERE, LET'S BROADEN THE TARGET AND THE FAMILIES NEED TO BE INVOLVED IN IT.

AND I THINK THE COUNCILWOMAN KIND OF UNEARTHED SOMETHING THAT I HAD NOT THOUGHT ABOUT BEFORE, WHEN I HEARD HIM ANSWER 100%, THAT'S KIND OF STUNNING TO ME, AND I WOULD GO -- BE ON THE RECORD OF SAYING I THINK IT'S UNFAIR TO FAMILIES IN THE COMMUNITY THAT WE DON'T HAVE AN OPPORTUNITY FOR THEM.

I'D HOPE THE NEXT ONES THAT COME THROUGH -- THIS WILL BE GREAT.

NRP HAS DONE FANTASTIC WORK IN THE COMMUNITY.

IT'S GOING TO BE A SOLID PROJECT.

IN THE NEXT ROUND OF C CHIP, I HOPE WE DON'T EVER ENCOUNTER THAT AGAIN.

I THINK EVERY DIFFERENT TYPE OF FAMILIES DESERVE THE RIGHT TO GET THE INCENTIVES, IF THEY'RE GOING DOWN TO 60 FROM 80%, I JUST WANT TO OPEN UP THE OPPORTUNITY FOR THE FAMILY.

I LOOK FORWARD TO SEEING THE PROJECT AND DAN AND THE TEAM HAVE DONE WONDERFUL PLANNING ON IT.

SO WE'LL SEE WHAT IT LOOKS LIKE IN EFFECT.

THANK YOU, MAYOR.

>> MAYOR PRO TEM: THANK YOU, COUNCILMAN.

COUNCILMAN SALDAÑA?

>> SALDAÑA: THANK YOU, COUNCILMAN, JUST SOME CLARIFYING QUESTIONS IF I CAN LOOK AT SLIDE 5.

I WANT TO MAKE SURE THAT THE NUMBERS I HAVE FROM A REPORT THAT I RECEIVED, I IMAGINE FROM CITY STAFF, IS STINT WITH DPAISH CONSISTENT WITH WHAT I'M LOOKING AT HERE.

I'M LOOKING MAYBE AT AN OLD PRESENTATION WHERE CITY WAIVER IS AT 102? IS THERE SOME RECOLLECTION OF THIS -- I DON'T KNOW IF -- MY STAFF PUT THIS TOGETHER OR NOT, BUT IS THAT NUMBER THAT I'M SEEING ON THE SCREEN, 155? MAYBE LORI, THIS IS A QUESTION FOR YOU.

WE HAVE AN INNER CITY INVESTMENT FUND, IS THAT WHAT WE'RE TAPPING IN WHEN WE TALKED ABOUT WHATEVER OPTIONS, THE 2 MILLION.

>> HOUSTON: YES.

>> SALDAÑA: WHAT ON THE SCREEN TAPS INTO THE TWO MLZ.

>> HOUSTON: THE $360,000 IS COMING OUT OF THE INNER CITY FUND TO HELP FUND THAT.

AS PART OF THE C CHIP POLICY THAT WAS RECENTLY PLACED ON A MORATORIUM, THERE WAS A GRANT PROVIDED TO PROJECTS THAT HAD RETAIL AT THE FIRST FLOOR LEVEL.

>> SALDAÑA: OKAY.

AND JUST TO SORT OF THINK ABOUT THIS PARTICULAR PROPERTY, LET ME SAY THIS: I'M GLAD WE'RE GETTING SOME CONCESSION.

I'M GLAD THAT THE PFC IS IN HERE.

IF YOU CONSIDER THIS PROPERTY SURROUNDED BY THE SAN ANTONIO MUSEUM OF ART, THE RIVER NARTHEX TENSION, $40 MILLION INJECTION OF PUBLIC DOLLARS ON BROADWAY, MAVERICK PARK, A COFFEE SHOP, I MEAN, THIS HAS EVERYTHING YOU COULD POSSIBLY WANT FROM A DEVELOPABLE SITE.

AND I THINK TO THE QUESTION OF THIS IS -- EVERY SITE IS UNIQUE, YEAH, THIS HAS EVERY BELLS AND WHISTLE YOU WOULD WANT, THAT'S WHAT MAKES IT PRETTY UNIQUE, AND I'M THINKING TO MYSELF, AT THE VERY LEAST, IF WE SAY GOODBYE TO THIS PROJECT, IF WE SAY WE DON'T WANT ANY PART OF IT, THIS MIGHT ACTUALLY BECOME A PROJECT THAT'S 100% MARKET RATE AT HIGHER RATES THAN WE'RE LOOKING AT.

SO THAT'S A GOOD THING, LET ME JUST SUBMIT TO THAT.

BUT I ALSO THINK THAT YOU ALSO CREATE A BAR THAT SAYS YOU MUST BE THIS TALL TO RIDE THIS RIDE ON A PROJECT WITH ALL OF THESE AMENITIES THAT HAVE ACCESS TO.

IN MY MIND, I'M LOOKING AT A FUTURE WHERE WE OFFER THESE KINDS OF AMENITIES CLOSE TO PEOPLE WHO MAY NOT MAKE AS MUCH MONEY AND MAYBE AT 60% AMI, THAT'S WHAT I HOPE WE CAN DRIVE TO WITH THE UNIQUENESS OF PROJECTS THAT MAY EXIST, SO I'M GRATEFUL WE'RE AT LEAST GETTING THIS PROJECT.

SO THIS WILL TAP INTO 2 MILLION, THE 368,000, THAT CREATES A FUND, BUT I IMAGINE THAT THERE'S NOT -- IS THAT ALLOCATION EVERY YEAR OF $2 MILLION THE CITY SET ASIDE IN THE GENERAL FUND.

>> HOUSTON: 2 MILLION EVERY YEAR.

>> SALDAÑA: BECAUSE WE PUT A MORATORIUM, HAS THAT FLUCTUATED, HAS THAT CREATED MORE OF AN

[03:45:01]

EXTENSE FROM THIS FISCAL YEAR'S PASSING AND THE NEXT YEAR.

>> HOUSTON: NO, BECAUSE THERE'S STILL PROJECTS TAKING TO COUNCIL THAT ARE USING THAT FUND.

THE INNER CITY INCENTIVE FUND FEEDS SEVERAL PROJECTS.

LIKE WE HELP SUPPORT THE USA PARKING GARAGE THAT WE APPROVED LAST YEAR.

WE HELP SUPPORT THE HISTORIC PRESERVATION FUND.

THE INNER CITY ISN'T JUST LIMITED TO THIS C CHIP POLICY.

>> SALDAÑA: WHAT'S THEIR ORIGINAL PRINCIPLE ON THAT EVERY YEAR THAT THEY HAVE TO WORK WITH.

>> HOUSTON: WE RECEIVE 3 MILLION ANNUALLY FROM THE SAWS FEE WAIVER PROGRAM.

>> SALDAÑA: A FINAL THOUGHT, WITH THE WAIVERS, IT CERTAINLY COMES DOWN TO THE JEREMY MCGUIRE ANALOGY, SHOW ME THE MONEY.

IF YOU WANT AFFORDABILITY, 60% AMI, SHOW ME THE MONEY.

REGARDLESS OF WHETHER THAT NUMBER IS HIGH OR ASTRONOMICAL, I WANT TO SEE WHAT OPTION EXIST.

WE CAN SAY NO TO IT, WE CAN'T AFFORD IT, BUT I DON'T KNOW IF WE'VE ASKED SOME OF THESE DEVELOPERS TO SHOW US, MAYBE IT'S 1.8 MILLION, AND WE COME BACK AND SAY, LOOK, WE'VE TOLD YOU WHAT WE WANT, YOU'VE TOLD US WHAT IT COSTS, NOW WE'RE GOING TO SHOW YOU THE MONEY TO MAKE IT HAPPEN.

I'M GLAD WE'RE SEEING SOME PROJECTS THAT SHOWS SOME AFFORDABILITY, REGARDLESS OF WHETHER I AGREE WITH THE DEFINITION OR NOT.

THAT WAS MY LAST QUESTION.

THANK YOU.

>> MAYOR PRO TEM: THANK YOU, COUNCILMAN.

COUNCILWOMAN VIAGRAN.

>> VIAGRAN: THANK YOU.

I WANT TO FIRST THANK ALL MY COUNCIL COLLEAGUES FOR THEIR THOUGHTFULNESS IN THIS PROJECT.

I THINK WHAT VETO, WHAT JOHN, KENNY ARE HEARING ARE SOME OF THE DIRECTIONS WE ARE WANTING TO GO AS A COUNCIL, AND I THINK THAT'S GOING TO HELP US AS WE MOVE FORWARD.

I THINK IT'S ALSO IMPORTANT THAT WE HAVE THIS CONVERSATION BECAUSE WE HAD THE RESOLUTION AND WE HAVE THE FRAMEWORK FOR THE MAYOR'S HOUSING POLICY TASK FORCE, BUT WE REALLY, AS A COUNCIL, HAVEN'T BEEN ABLE TO START THOSE POLICY CONVERSATIONS OR DO ANY VETTING YET.

SO WE ARE DOING THAT KIND OF UP HERE ON THE DAIS RIGHT NOW.

BUT I KNOW THAT WE ARE GOING TO BE DOING THAT FOCUS AS WE MOVE FORWARD.

ONE OF THE SPECIAL THINGS ABOUT THIS PROJECT FOR US ON THE PFC WAS THIS IS THE FIRST TRULY CENTER CITY DOWNTOWN PROJECT THAT WE HAD BEEN ABLE TO DO, BECAUSE THE OTHER ONES JUST HADN'T -- HAD ALL BEEN JUST ON THE PERIMETER, THE OUTSIDE OF THE DOWNTOWN CORE.

AND IT WAS DISCUSSED TO GO FURTHER DOWN TO REACH MORE AFFORD BILITYD IN THE AREA -- AFFORDABILITY IN THE AREA.

SO I DO THINK -- AS WE MOVE FORWARD, WE ARE GOING TO HAVE -- THE CITY, THROUGH THE PFC, IS GOING TO HAVE SKIN IN THE GAME IN THIS PIECE OF PROPERTY FOR A VERY LONG PERIOD OF TIME.

AND I THINK THAT IS WHAT IS IMPORTANT FOR US AS WE MOVE FORWARD.

THANK YOU.

>> MAYOR PRO TEM: OKAY.

I'D LIKE TO GO AHEAD AND ASK A COUPLE OF QUESTIONS MYSELF AT THIS TIME.

I DON'T SEE ANYONE ELSE IN THE QUEUE.

AND I SUPPOSE, VETO, I'LL GO AHEAD AND ASK YOU IF YOU CAN HELP WITH THESE.

AND POSSIBLY LORI MIGHT HAVE TO HELP OUT AS WELL.

ON THIS PARTICULAR PROJECT, I SEE THE INCENTIVES THAT ARE HERE, AND ALSO OF COURSE A MAJOR INCENTIVE OR ADVANTAGE IS THE FACT THAT IT WILL BE NONTAXABLE, SO NO PROPERTY TAXES WILL BE PAID.

ARE THERE ANY OTHER POTENTIAL INCENTIVES THAT MAY BE AVAILABLE TO THIS DEVELOPMENT THAT WE DON'T KNOW ABOUT RIGHT NOW?

>> I'M NOT AWARE OF ANY ADDITIONAL ONES.

>> MAYOR PRO TEM: NOTHING ELSE MIGHT BE COMING DOWN THE PIPELINE.

OKAY.

OBVIOUSLY THE BROADWAY DEVELOPMENT IS CERTAINLY GOING TO ENHANCE THE VALUE OF THIS PARTICULAR DEVELOPMENT.

I'D LIKE TO UNDERSTAND WHAT IS THE INTEREST OF HTC OR THE PFC? WHAT IS THE INTEREST THEY HOLD IN THIS PARTICULAR PROJECT?

>> SO THEY HAVE A 15% EQUITY OWNERSHIP.

>> MAYOR PRO TEM: ONE-FIVE, 15?

>> 15% EQUITY, YES, SIR.

THEY ARE -- AT THE END OF THE 75 YEAR TERM, THEY OWN THE LAND AS WELL.

AND SO AT THE END OF THE 75 YEAR TERM, THE PFC WOULD BE THE OWNERS OF THE ENTIRE DEVELOPMENT AS WELL.

AND SO THE HOUSING THERE COULD BE AFFORDABLE -- AUDIO] -- IF THE PFC CONTINUES TO OWN IT AND CONTINUES TO HAVE THOSE AFFORDABLE RENTS BE PART OF THE EQUATION.

>> MAYOR PRO TEM: DO THEY RECEIVE SOMETHING OUT OF THE MONTHLY RENTS BACK TO THE FUND?

>> THEY RECEIVE THAT 50% EQUITY BACK.

AND I KNOW MAYBE TRAVIS CAN ANSWER MORE OF THE DETAILED QUESTIONS, BUT I DO KNOW THEY DO RECEIVE THAT INCOME AS WELL.

THERE IS ALSO AN ANNUAL

[03:50:02]

ADMINISTRATIVE FEE AS WELL THAT'S FIXED, IT'S $20,000.

AND THAT'S BECAUSE THERE ARE COMPLIANCE MATTERS AS WELL THAT THE STAFF AT THE TRUST MAKES SURE IS TAKEN CARE OF FOR THE UNITS AS WELL.

>> MAYOR PRO TEM: OKAY.

CAN THE PFC SELL ITS INTEREST AT ANY TIME BEFORE THE END OF 75 YEARS?

>> SO THE -- WITHOUT GOING INTO A HISTORY LESSON OF ALL OF THESE IN THE PAST, THE PFC IN THIS PROJECT DOES HAVE THE RIGHT TO EFFECTIVELY CAPITALIZE THEIR INTEREST, AND SO IF THE PFC OR THE CITY WERE MOTIVATED TO HAVE A BULK SUM IN THREE YEARS FROM NOW ASW AN EXAMPLE, THEN THEY HAVE THE RIGHT TO DO THAT.

IF NOT, THEY HAVE THE RIGHT TO STAY IN, EVEN IF THERE'S OTHER CAPITAL EVENTS, OTHER OWNERS, THE PFC CAN STAY IN THERE IN THAT 15% SLOT.

>> MAYOR PRO TEM: SO DOES THE MAJORITY PROPERTY OWNER HAVE THE RIGHT TO SELL THEIR INTEREST AT ANY TIME.

>> YES, SIR, AT ANY TIME.

>> MAYOR PRO TEM: OKAY.

IF THE PFC WERE TO SELL ITS INTEREST, WOULD THEN THE PROPERTY BECOME ALL PRIVATE AND WOULD IT LOSE ITS TAX VALUE -- IT'S TAX BREAK?

>> SO THE PFC ACTUALLY HAS TWO INTERESTS.

THIS IS A TAD CONFUSING, BUT THE PFC OWNS THE LAND AND THE IMPROVEMENTS FEE SIMPLE ABSOLUTE.

MEANING THEY OWN IT FOREVER.

>> MAYOR PRO TEM: WELL, 15% OF IT.

>> NO, SIR.

THEY OWN EVERYTHING FOREVER.

THEY LEASE IT BACK TO THE PROJECT FOR 75 YEARS.

WITHIN THAT PROJECT ENTITY, THE PFC HAS A 15% OWNERSHIP.

>> MAYOR PRO TEM: OKAY.

SO THE PMC LITERALLY COULD SELL THE WHOLE THING, LOCK, STOCK AND BARREL.

>> THE PFC COULD SELL THEIR SIMPLE INTEREST AND THEY WOULD ALWAYS STAY IN THERE FOR THE LENGTH OF THE LEASE.

THEY CANNOT BACK OUT OF THE LEASE EARLY.

IF THE PROJECT LOST ITS AFFORDABILITY COMPONENT, FOR EXAMPLE, VERY MUCH THEORETICAL, IF 10 YEARS FROM NOW, THERE'S A DIFFERENT OWNER AND THEY MAKE A MISTAKE AND START ALLOWING OVERINCOME RESIDENTS IN THERE, THEN THAT PROPERTY WOULD THEN BE SUBJECT TO FULL PROPERTY TAXES AND THE PFC WOULD STILL OWN IT AND THE PFC WOULD STILL HAVE THE RIGHT TO THAT 15%.

>> MAYOR PRO TEM: YOU SAY BY MISTAKE.

>> IT'S ECONOMICALLY FEASIBLE THAT THAT WOULD BE ADVANTAGEOUS, I'M SAYING IF THEY HAD A BAD COMPLIANCE DEPARTMENT, WHICH WE DO NOT, AND THEY STARTED ALLOWING OVERINCOME RESIDENTS IN THERE, THEN THE PUNISHMENT, EFFECTIVELY, IS THEY LOST THEIR TAX EXEMPTION.

THE STATE REQUIRES THE ENTITY TO HAVE 50% OF THE UNITS RESERVED FOR THOSE.

>> MAYOR PRO TEM: THAT COULD BE BAD FOR THE PEOPLE WHO ARE LIVING THERE, ALL OF A SUDDEN THEY LOSE THEIR INCENTIVE, DON'T THEY?

>> IF THEY'VE SIGNED THE LEASE -- I'M NOT SURE I UNDERSTAND THE QUESTION.

>> MAYOR PRO TEM: IT JUST SOUNDS A LITTLE QUESTIONABLE TO ME.

WHAT ELSE IS IN THE PIPELINE FROM THE HOUSING TRUST AND THE PFC? THE REASON WHY I BRING THAT UP IS BECAUSE WE'VE JUST HEARD THAT THIS PARTICULAR PROJECT HAS BEEN UNDERWAY FOR ABOUT A YEAR AND A HALF.

AND SO IT'S FINALLY GOTTEN TO US.

AND I'M UNDERSTANDING BY WHAT LORI SAID IS BECAUSE IT'S BEEN IN THE WORKS FOR A YEAR AND A HALF, THEN IT'S LOCKED IN TO ALL OF OUR PREVIOUS INCENTIVES.

>> UH-HUH.

>> MAYOR PRO TEM: I'M WONDERING HOW MUCH OTHER PROJECTS ARE IN THAT SAME PIPELINE THROUGH PFC, THROUGH THE HTC, THAT WE MIGHT ALREADY BE ALSO OBLIGATED TO MAKE SURE THE INCENTIVES WE MAY BE WANTING TO END AREN'T OBLIGATED FOR THESE FUTURE PROJECTS?

>> HOUSTON: AND COUNCILMEMBER, MY COMMENT WAS REGARDING THE C CHIP PROJECTS.

SO WE HAD 2C CHIP PROJECTS THAT WERE IN THE PIPELINE WHEN WE PLACED THE MORATORIUM ON THE C CHIP.

THIS WAS ONE OF THE TWO.

THE OTHER ONE WAS THE HEMISFAIR PROJECT THAT WAS ON THE NORTHWEST CORNER OF MARKET AND ALAMO.

THERE WERE ONLY TWO PROJECTS IN THE PIPELINE.

AND FROM WHAT I UNDERSTAND, THERE ARE THREE TO FIVE PROJECTS IN THE PFC PIPELINE CURRENTLY THAT WILL BE REVIEWED BY THE PFC.

>> MAYOR PRO TEM: DO ANY OF THOSE HAVE ANY GRANDFATHERED BY RIGHTS RIGHT TO CLAIM THAT THEY SHOULD HAVE CERTAIN INCENTIVES FROM US?

>> HOUSTON: NONE OF THE C CHIP PROJECTS.

THIS WAS THE ONLY C CHIP PROJECT THAT WAS A SAN ANTONIO HOUSING TRUST PFC PROJECT.

>> MAYOR PRO TEM: IT LOOKS LIKE PETER HAS ANYTHING ELSE TO ADD.

>> ZANONI: I WAS JUST SHOWING LORI THE LIST.

WE DO HAVE THE LIST OF PROJECTS TA ARE IN THE PIPELINE.

IT'S ABOUT THAT NUMBER.

BUT FIVE OR SO PROJECTS THAT ARE IN THE PIPELINE.

>> MAYOR PRO TEM: AND SO THEY MAY BE ASKING FOR INCENTIVES UNDER THE OLD SYSTEM IF WE MAKE A CHANGE NOW? OR IN THE FUTURE?

>> UNDER THE C CHIP INCENTIVES?

>> MAYOR PRO TEM: YEAH.

>> ZANONI: THEY MAY BE.

YES.

THEY COULD.

>> HOUSTON: THE LIST OF PROJECTS THAT PETER HAS, THERE'S ABOUT FIVE.

NONE OF THEM ARE RECEIVING C CHIP INCENTIVES THROUGH THE OLD PROGRAM.

[03:55:01]

THEY WOULD HAVE TO GO THROUGH A NEW PROGRAM THAT COUNCIL HAS YET TO APPROVE, AND WE HOPE TO BRING SOMETHING TO COUNCIL BEFORE THE END OF THE YEAR.

>> MAYOR PRO TEM: AND THE SAME -- SO AS FAR AS YOU KNOW, THE SAME WITH ANYTHING, THOUGH, THAT MIGHT BE COMING FROM THE TRUST.

>> SCULLEY: NO.

>> MAYOR PRO TEM: THE TRUST DOESN'T HAVE ANYTHING ELSE.

>> SCULLEY: MAYOR -- OR IF I COULD.

JOHN KENNY, THE DIRECTOR OF THE HOUSING TRUST IS HERE IN THE AUDIENCE, AND PERHAPS HE CAN ANSWER THE QUESTION ON ANY PENDING PFC PROJECT REQUEST.

I THINK THAT WAS YOUR QUESTION, HOW MANY PENDING PFC.

>> MAYOR PRO TEM: YEAH, MY CONCERN IS, ARE WE GOING TO FIND OUT THAT THERE'S A BUNCH OF OTHER THINGS THAT ARE SO-CALLED GRANDFATHERED.

I THINK IT WOULD BE GOOD TO KIND OF KNOW THEY'RE COMING DOWN THE PIPE RIGHT NOW AS WE DECIDE ARE WE GOING TO MAKE ANY CHANGES IN THE FUTURE.

PERSONALLY I HAVE A HARD TIME SAYING THAT SOMETHING THAT WAS STARTED A YEAR AGO OR TWO YEARS AGO SHOULD BE GIVEN THE COURTESY OF CHANGES THAT WE WANT TO CREATE TODAY, BUT I'M LOOKING TO HEAR WHAT THEY MIGHT BE.

>> HI, I'M JOHN KENNY.

OH, BY THE WAY, I GOT IN A FIGHT WITH THE ORIENTAL RUG LAST NIGHT, SO I'VE GOT A CRAZY THING ON MY HEAD, DISTRACTION.

SO IF THERE ARE ANY -- THE FIVE UNITS THAT WE HAVE, NONE OF THEM HAVE C CHIP.

>> MAYOR PRO TEM: OR WILL BE ASKING FOR C CHIP OR OTHER INCENTIVES AS FAR AS YOU KNOW?

>> I DOUBT IT.

MAIMPT MAYOR PRO TEM OKAY.

>> MAYOR PRO TEM: OKAY.

ALL RIGHT.

THANK YOU.

>> YOU'RE WELCOME.

>> MAYOR PRO TEM: I THINK THAT ENDS MY QUESTIONS, ALTHOUGH I WILL LEAVE WITH A COMMENT.

YOU KNOW, I THINK WE'VE HEARD CONCERN FROM SEVERAL COUNCILPEOPLE ABOUT THE FACT THAT AFFORDABILITY IS VERY QUESTIONABLE WHEN WE HEAR THAT IT'S ONLY AFFORDABLE FOR AN INDIVIDUAL OR MAYBE A MARRIED COUPLE WHO IS AT THE VERY TOP OF WHAT WE CONSIDER AFFORDABLE INCOME.

IT DOESN'T LOOK LIKE ANY OF YOUR PROJECTIONS ARE GOING TO ALLOW SOMEBODY WITH 75% AFFORDABLE INCOME AFFORD TO LIVE THERE OR 65%.

YOU KNOW, IT SEEMS LIKE YOU'RE LOOKING TO ONLY HELP THE PEOPLE AT THE TOP OF THAT INCOME LEVEL.

AND ONE OTHER THING ON YOUR MATH, AND MAYBE SOMEONE CAN HELP ME WITH THE PROJECT, IT SAYS THE ONE BEDROOM PFC RATE GOES UP TO 664 SQUARE UNIT APARTMENT, AND THEN YOU HAVE ONE THAT ARE MARKET RATES THAT START AT 664 SQUARE FEET.

IS THERE ANY DIFFERENCE IN THE QUALITY OF THOSE TWO PARTICULAR TYPES OF UNITS?

>> NO, SIR.

THERE'S JUST SOME OVERLAP.

EFFECTIVELY THE THOUGHT THERE -- SORRY ABOUT THAT, THE THOUGHT THERE IS WE HAVE -- WE ARE STILL OPERATING AS AN APARTMENT COMPLEX, WE HAVE FOLKS COMING IN THAT ARE SLIGHTLY OVERINCOME AND THEY NEED WHAT WOULD BE CALLED AN ENTRY LEVEL UNIT IN THIS MARKET, AND SO -- I MEAN, THE ENTRY LEVELS UNITS IN THIS MARKET ARE, YOU KNOW, 300 TO $600 MORE EXPENSIVE THAN OUR ENTRY LEVEL FOR THE PFC, SO WE'RE REALLY JUST TRYING TO INVITE TRAFFIC.

YOU'LL NOTICE THERE ARE NOT MANY UNITS OF THAT SIZE THAT ARE SET ASIDE AS MARKET RATE, IT OFFERS US SOME FLEXIBILITY FOR LEASE UP.

>> MAYOR PRO TEM: I WASN'T SURE HOW MANY THERE WERE.

I PRESUME THE 664 SQUARE UNIT IS THE ONE THAT'S GOING TO COST $1,340 A MONTH AS THE MARKET RATE.

>> YES, SIR.

THAT'S EXPECTED AS IF IT WERE ON THE GROUND TODAY.

>> MAYOR PRO TEM: I WOULD EXPECT THAT THE ONE BEDROOM UNIT AT 664 SQUARE FEET WOULD BE AT THE $1,210 RATE THAT YOU HAD LISTED THERE?

>> YES, SIR.

>> MAYOR PRO TEM: IS THAT RIGHT?

>> YES, SIR.

IT LOOKS 1185 TO 1210.

THERE'S SOME SMALLER UNITS THAT GO DOWN TO 1065.

>> MAYOR PRO TEM: SO THERE ARE SOME 1185 UNITS THAT ARE 664 SQUARE FEET.

>> 632.

>> MAYOR PRO TEM: AND THE REASON WHY I BRING IT UP, IS BECAUSE A 664 SQUARE FOOT UNIT, IT'S MORE LIKE $1,182 FOR THE SAME SIZE UNIT, SO IT'S REALLY NOT 20% OR 80%, IT'S MORE LIKE 19% OR 81%.

SO --

>> WE'RE NOT NECESSARILY PRICING THOSE TO MEET AN INCOME LEVEL.

IT'S MORE SO TO MEET AN ENTRANCE OF TRAFFIC.

THAT'S ANOTHER POINT AND THE BENEFIT OF THE PFC, IS YET THERE'S 142 UNITS THAT ARE AFFORDABLE FOR FOLKS MAKING LESS THAN 80% OF AMI, THOSE ARE RESERVED FOR THOSE FOLKS MAKING LESS THAN 80% OF AMI, SO, YES, THERE'S -- YOU KNOW, IF SOMEBODY WANTED TO LIVE IN THE SMALLEST UNIT MAYBE AT A SMALLER COMPLEX SOMEWHERE IN THE DOWNTOWN AREA, THEY MIGHT BE ABLE TO FIND A

[04:00:02]

UNIT THAT THEY CAN AFFORD BY THE DEFINITION, BUT IT'S NOT RESERVED FOR THEM.

IT COULD BE SOMEBODY MAKING $100,000 THAT JUST HAS A GOOD DEAL ON AN APARTMENT.

AT OUR COMMUNITY, AND ALL THE PFC COMMUNITIES, THOSE ARE INCOME RESTRICTED AND REGULATED SO THEY'RE RESERVED FOR THAT INCOME LEVEL, IT'S NOT JUST ARTIFICIALLY LOWERING PRICES.

>> MAYOR PRO TEM: I THINK THE COUNCIL HAS HEARD ME THAT WE DON'T BELIEVE 80 MERS OF --% COUNTY WIDE AFFECTS THE INCOME OF THE PEOPLE THAT LIVE IN THE CITY, WHERE YOU ARE BUILDING THE PROJECT.

I HAVE REAL DIFFICULTY APPROVING SOMETHING LIKE THIS.

I DON'T BELIEVE IT SERVES THE COMMUNITY EFFECTIVELY, AND I DON'T KNOW THAT THE INCENTIVES THAT WE'RE GIVING ARE WORTH THE RETURN TO THE COMMUNITY.

ANYWAY, THAT'S THE END OF MY COMMENTS, AND I THINK IT'S TIME TO GO AHEAD AND CALL FOR A VOTE ON THE ISSUE.

>> CLERK: YES.

AND MAYOR, I JUST NEEDED TO ANNOUNCE THAT MAYOR NIRENBERG IS RECUSING HIMSELF ON THIS ITEM.

THANK YOU.

>> MAYOR PRO TEM: AUDIO] YOU ALL TO VOTE.

YES, PLEASE VOTE.

THE MOTION CARRIES.

>> SCULLEY: MAYOR, I JUST --

>> MAYOR PRO TEM: YES, MANAGER SCULLEY.

>> SCULLEY: ARE WE FINISHED? WE DIDN'T SHOW THE VOTE YET.

>> MAYOR PRO TEM: WE ARE FINISHED WITH THE VOTE.

THE VOTE CARRIED.

[28. City Manager's Report]

I'M SORRY...

>> SCULLEY: THERE WE GO.

JUST A QUICK CITY MANAGER'S REPORT BEFORE WE MOVE INTO ZONING, AND WE HAVE AN EMPLOYEE RECOGNITION, SO I'LL BE QUICK ABOUT THIS.

FIRST, I JUST WANTED TO GIVE YOU AN UPDATE ON THE RECENTSIVE TECH SMART CITY'S INITIATIVES THAT WE'RE UNDERTAKING AND WE'RE REPORTING THAT TO THE TECHNOLOGY COMMISSION BUT I WANTED TO TELL YOU ABOUT THE DATA THON THAT WE HOSTED JUST RECENTLY.

THE CITY GEEK DOCUMENT AND OUR SMART SA PARTNERS HOSTED A DATATHON EVENT WITH PARTICIPANTS FROM OUR PARTNER AGENCIES LOOKED AT NEW WAYS OF THINKING AND TO EXPLORE COMPELLING IDEAS.

SO EACH SMART SA PARTNER RELEASED DATA SETS ACROSS THREE CHALLENGE AREAS, TRANSPORTATION SUSTAINABILITY AND ACCESS TO CITY SERVICES AND PARTICIPANTS USED THIS DATA TO LOOK FOR NEW INSIGHTS, EXPLORE OPPORTUNITIES FOR INNOVATION AND DEVELOP DASHBOARDS AND VISUALIZATION TOOLS.

SEVEN OF THE 32 TEAMS THAT APPLIED WERE SELECTED TO COMPETE IN THE EVENT TWO WEEKS AGO, AND THE WINNING TEAM A PROTOTYPE THAT WOULD USE DATA FROM THE CITY'S CPS AND SAWS TO BUILD A DASHBOARD THAT WOULD PREDICT GEOGRAPHIC AREAS WHERE SENIORS THAT MIGHT BE AT RISK OF HEALTH ISSUES DURING A SIGNIFICANT WHETHER -- WEATHER EVENT, WHETHER IT'S HEAT, COLD, FLOODING OR UTILITY OUTAGE, AND THIS WOULD ALLOW PROACTIVE NOTIFICATIONS TO FAMILY MEMBERS OR FRIENDS TO CHECK ON THOSE INDIVIDUALS, THE WINNING TEAM WILL HAVE SIX MONTHS TO BUILD AND COMPLETE THEIR PROTOTYPE, AND THIS PROBABILITY IS THE FIRST STEP TO BUILD THE DESIGN OF INCORPORATING THIS DATA ON OUR SMART SA PARTNERS TO HAVE A ONE-STOP DIGITAL RESOURCES FOR THE RESIDENTS OF SAN ANTONIO.

NEXT I WANT TO SAY THAT OUR DIGITAL KIOSK PILOT PROGRAM IS OFF TO A GREAT START.

THE PROGRAM IS INSTALLING 30 KIOSKS AT NO COST TO THE CITY THROUGHOUT SAN ANTONIO INCLUDING SOME OF OUR CITY PAR PARKS, THE SAN ANTONIO INTERNATIONAL AIRPORT, CONVENTION CENTER, ALAMODOME AND DOWNTOWN.

IN ADDITION THE CITY HAS FORMED PARTNERSHIPS WITH VIA TO PLACE SEVEN KIOSKS AT HIGH-TRAFFIC 53IO LOCATION AND THE NATIONAL PARK SERVICE TO PLACE TWO AT WORLD HERITAGE LOCATIONS.

THE KIOSKS ARE AN EXCELLENT WAY FOR THE CITY TO COMMUNICATE WITH BOTH RESIDENTS AND VISITORS TO PROVIDE THE LATEST INFORMATION ON WHAT IS HAPPENING IN THE SAN ANTONIO AREA.

WAYFIENTDING, VIA BUS ROUTES, B CYCLE, LOCAL EVENTS AND LOCAL BUSINESS.

THEY'LL ALSO BE ABLE TO PROMOTE LOCAL PROGRAMS LIKE THE CITY OF SAN ANTONIO'S LIBRARY DIGITAL COLLECTION, CITY EVENTS AND CURRENT JOBS THAT ARE AVAILABLE WITHIN THE CITY.

KIOSKS ARE ACCESSIBLE TO PEOPLE WITH DISABILITIES AND PROVIDE CONTENT IN ENGLISH AND SPANISH.

IN THE MONTHS OF NOVEMBER AND DECEMBER WE'LL INSTALL THE REMAINDER IN THE LOCATIONS.

JUST WANTED TO SAY, TOO, AS PART OF THE TRICENTENNIAL'S FINAL

[04:05:02]

SERVE 300 INITIATIVE ON OCTOBER 13TH, WE INCLUDED A FOOD DRIVE BENEFITING THE SAN ANTONIO FOOD BANK AND THE FOOD BANK, OF COURSE, SERVES MORE THAN 230,000 INDIVIDUALS ANNUALLY, INCLUDING CHILDREN AND SENIORS, DISTRIBUTES FOOD TO 530 NONPROFITS ACROSS THE COUNTY.

IN RECENT MONTHS AFTER ASSISTING INDIVIDUALS AND FAMILIES THIS PAST SUMMER AND RECOVERING FROM LAST YEAR'S CATASTROPHIC HURRICANES, THE FOOD BANK WAS EXPERIENCING DEFICIENCIES IN THE AMOUNT OF FOOD IN THEIR SUPPLIES, AND THE FINAL TRICENTENNIAL SERVE 300 INITIATIVE FOCUSED ON CITYWIDE SUSTAINABILITY PROJECTS AND WE CALLED ON CITY EMPLOYEES TO RESTOCK THE SHELVES AT THE SAN ANTONIO FOOD BANK.

THE FOOD DRIVE GOAL WAS TO COLLECT 1700-POUNDS OF FOOD ITEMS IN COMMEMORATION OF OUR TRICENTENNIAL YEAR, AND I'M PROUD TO SHARE WITH YOU TODAY THAT THE TOTAL FOOT WEIGHT COLLECTED WAS MORE THAN 5,000-POUNDS.

SO WE MORE THAN DOUBLED, ALMOST TRIPLED THE AMOUNT OF FOOD COLLECTED IN THE DEPARTMENT COLLECTING THE MOST FOOD WEIGHT WAS THE ECONOMIC DEVELOPMENT DEPARTMENT.

SO I JUST WANT TO CONGRATULATE ECONOMIC DEVELOPMENT AND THANK ALL THE CITY EMPLOYEES THAT DID DONATE.

THEN LASTLY, OUR PARKS AND RECREATION DEPARTMENT HOSTS A VARIETY OF SUMMER OPPORTUNITIES FOR FAMILIES TO BE ACTIVE, AND, OF COURSE, ENJOY THE OUTDOORS, AND THE DEPARTMENT OPERATES 23 OUTDOOR SWIMMING POOLS DURING THE SUMMER AS WELL AS THE INDOOR NATATORIUM OPEN YEAR ROUND AND WE PROVIDE LAP SWIM AND OPEN SWIM OPPORTUNITIES IN ADDITION TO FREE AQUA FIT CLASSES LIKE AQUA ZUMBA, WATER AEROBICS AND THIS PAST SUMMER PARKS AND RECREATION OFFERED OVER 2700 FREE GROUP SWIMMING LESSONS AT OUR OUTDOOR POOLS IN 2018.

THE DEPARTMENT WAS RECOGNIZED BY THE RED CROSS THIS YEAR FOR THEIR COMMITMENT TO WATER SAFETY, LIFE GUARD TRAINING AND DROWNING PREVENTION BY CERTIFYING MORE THAN 100 LIFE GUARDS.

MY FIRST JOB AT AGE 15 WAS AS A LIFE GUARD AND SWIM INSTRUCTOR AT A COUNTY POOL, SO I UNDERSTAND THE IMPORTANCE OF HAVING PUBLIC POOLS AND SWIMMING AVAILABLE TO THE PUBLIC.

IT TAKES A LARGE NUMBER OF STAFF TO SUCCESSFULLY OPERATE A SUMMER SEASON, AND TODAY I WANTED TO RECOGNIZE ONE OF THOSE STAFF MEMBERS, ELAINE VALDEZ, WHO'S HERE IN THE AUDIENCE PATIENTLY WAITING HERE FOR A COUPLE OF HOURS, A PARKS AND RECREATION SEASONAL EMPLOYEE WHO RECENTLY RECEIVED THE CARRIE O'BRIEN COACHING AWARD FROM THE U.S.

MASTER'S SWIMMING. U.S.

MASTER'S SWIMMING IS A NATIONAL ORGANIZATION FOUNDED IN THE 1970S WITH THE GOAL OF ENCOURAGING ADULTS TO IMPROVE FITNESS THROUGH SWIMMING.

AND IN 2008, THE U.S. MASTER'S SWIMMING COACHES COMMITTEE INITIATED THE CARRIE O'BRIAN COACHING AWARD TO RECOGNIZE SWIMMING COACHES FOR THEIR PASSION AND DEDICATION TO THE SWIMMING PROFESSION.

ELAINE HAS BEEN WITH THE PARKS DEPARTMENT SINCE 2013, SHE IS AN AQUATIC SUPERVISOR OVERSEEING A NUMBER OF CITY OUTDOOR POOLS.

SHE OVERSEES THE CURRICULUM FOR THE FREE SWIM GROUP SWIMMING LESSONS AND THE DEPARTMENT'S CONDITIONING PROGRAM, WHICH HELPS POTENTIAL LIFE GUARD CANDIDATES PREPARE FOR TESTING.

SHE ALSO ASSISTS IN RECRUITING OUR SUMMER LIFE GUARDS AND POOL SUPERVISORS.

SO CONGRATULATIONS TO ELAINE FOR THIS AWARD AND YOUR DEDICATION TO OUR CITY AQUATICS PROGRAM.

I KNOW THAT COUNCILWOMAN GONZALES HAS TRAINED WITH ELAINE IN THE PAST AND, MAYOR, I'M SURE SHE WOULD LIKE TO ALSO THANKS ELAINE ON HER ACHIEVEMENT IN BEING HONORED WITH THE CARRIE O'BRIEN COACHING AWARD.

CONGRATULATIONS, ELAINE!.

[APPLAUSE]

>> MAYOR NIRENBERG: OKAY.

THANK YOU, SHERYL.

COUNCILWOMAN GONZALES?

>> GONZALES: WELL, THANK YOU, MAYOR AND SHERYL FOR THE OPPORTUNITY TO PUBLICLY RECOGNIZE MY FRIEND ELAINE VALDEZ FOR ALL THE WORK THAT SHE DOES HERE AT THE CITY, ESPECIALLY FOR OUR SWIM PROGRAM AND OUR FREE SWIM PROGRAM AND ALSO ALL OFF OUR LIFE GUARDS.

IT'S THE FIRST COOL DAY, A LITTLE BRISK DAY THAT WE'VE HAD, NOT SO LONG AGO WE WERE IN THE SUMMER SEASON ENJOYING OUR SWIMMING POOLS, AND I HAD THE GREAT PRIVILEGE OF GROUND BREAKING ON SATURDAY FOR OUR ELMENDORF POOL.

A COUPLE OF YEARS AGO AS WE WERE EVOLVING THE PARK, WE REMOVED THE POOL FROM ELMENDORF LAKE PARK BECAUSE WE WANTED TO MAKE ADJUSTMENTS TO THE LARGER PARK.

AND SO WE COMMITTED TO BRINGING THAT SWIMMING POOL BACK TO THE AREA, AND SO WE DID THE GROUND BREAKING.

AND I, BEING A MASTER SWIMMER, I KNOW MY COLLEAGUES AND SOME OF THE PEOPLE OUT HERE HAVE HEARD ME TALK ABOUT MY IRON MAN TRAINING AND ELAINE WAS ONE OF OUR FIRST COACHES THERE AT THE -- THERE AT THE JCC, AND THEN AT UTSA 1604 CAMPUS FOR SWIMMING.

AND ELAINE WAS ONE OF THE WOMEN WHO STAYED AFTER OUR 6:00 A.M.

[04:10:02]

SWIM CLASS AND HELPED ME WITH STROKES AND HELPED ME WITH ENDURANCE SO THAT I COULD ULTIMATELY COMPLETE THE FOUR IRON MAN RACES THAT I DID FOR OVER 10 YEARS.

I'VE KNOWN ELAINE FOR A LONG TIME, AND SHE'S A GREAT EXAMPLE OF THE KIND OF LEADERSHIP THAT WE HAVE HERE IN OUR CITY, A WOMAN WHO TAKES EXTRA CARE FOR ALL OF HER -- THE WOMEN -- OR THE PEOPLE THAT SHE TRAINS, BUT ALL OF OUR STUDENTS HERE IN SAN ANTONIO.

SHE SHOWS A GREAT COMMITMENT AND ALSO A WONDERFUL KIND SOUL.

AND SHE'S MUCH DESERVING OF THIS RECOGNITION WITH THE MASTER'S SWIMMING NATIONAL MEMBERSHIP FOR THE MASTER'S SWIM PROGRAM, OVER 65 MASTER SWIMMERS ALL AROUND THE COUNTRY.

AND ELAINE WAS ONE OF THE COACHES THAT WAS RECOGNIZED FOR HER DEDICATION.

AND ONE OF THE REASONS I DO LOVE SWIMMING SO MUCH AND WHY I'VE BEEN PROMOTING IT IN OUR COMMUNITY IS BECAUSE, FIRST OF ALL, WE HAVE VERY HIGH RATES OF DROWNING FOR LATINO CHILDREN ALL AROUND THE COUNTRY AND ESPECIALLY HERE IN SAN ANTONIO, BUT IT'S ALSO AN ACTIVITY THAT YOU CAN DO YOUR ENTIRE LIFE.

SO IF YOU LEARN TO SWIM WHEN YOU'RE A YOUNG PERSON, YOU CAN SWIM COMPETITIVELY IN HIGH SCHOOL, BUT YOU CAN ALSO SWIM COMPETITIVELY FOR YEARS AND YEARS TO COME.

AND SO IT'S A WONDERFUL ACTIVITY THAT WE CAN DO OUR WHOLE LIVES, AND THAT'S REALLY THE KIND OF ACTIVITY THAT WE WANT TO BE PROMOTING HERE IN SAN ANTONIO AS WE'RE ADDRESSING SOME OF THE NEEDS WE HAVE FOR HEALTH OUTCOMES.

SO THANK YOU FOR THE OPPORTUNITY TO RECOGNIZE ELAINE AND ALL THE WONDERFUL WORK THAT SHE'S DONE, AND WE WILL INVITE ALL OF MY COLLEAGUES TO JOIN US, HOPEFULLY NEXT SUMMER, AS WE DO OUR RIBBON CUTTING FOR OUR NEW POOL HERE IU WANT TO MAKE ANY COMMENTS OR SAY A FEW WORDS.

>> OH, I'M JUST VERY GRATEFUL THAT I HAD THE OPPORTUNITY TO SERB F THE CITY -- SERVE THE CITY OF SAN ANTONIO AND USE THE GIFTS THAT I HAVE AS A SWIMMER, AS AN ATHLETE, AS A SWIMMING INSTRUCTOR, AS A COACH.

SO THANK YOU AGAIN.

>> GONZALES: THANK YOU, ELAINE, AND THANK YOU FOR THE OPPORTUNITY TO PUBLICLY RECOGNIZE YOU.

THANK YOU.

[APPLAUSE]

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN GONZALES AND THANK YOU, ELAINE.

CONGRATULATIONS TO YOU.

[Zoning Consent Agenda]

ALL RIGHT.

THAT IS THE BALANCE OF OUR MORNING AGENDA, WE DO HAVE ZONING, A ZONING AGENDA NOW, SO WE'LL GO AHEAD AND RESUME OUR ZONING AGENDA.

I HAVE ITEMS FOR INDIVIDUAL CONSIDERATION FROM THE CONSENT ZONING AGENDA, AND I HAVE THOSE ITEMS AS Z1, P WUNS AND Z2, P4 AND Z12.

ARE THERE ANY OTHER ITEMS MY COLLEAGUES WOULD LIKE TO PULL FROM THE CONSENT ZONING AGENDA? IF THERE'S NOT I'LL ENTERTAIN CONSENT FOR P1, Z1, P4 AND Z12, I'LL ENTERTAIN A MOTION SAVE FOR THOSE.

OKAY.

THERE'S A MOTION AND A SECOND FOR THE BALANCE OF THE CONSENT ZONING AGENDA.

ALL ITEMS SAVE FOR Z1, P1, Z4 AND Z12.

THERE ARE A COUPLE CITIZENS SIEBED UP TO -- SIGNED UP FOR ITEMS ON THE BALANCE OF THE CONSENT AGENDA, SO I'LL GO AHEAD AND CALL THEM NOW.

JACK FINGER?

>> WELL, MAYOR NIRENBERG AND OTHER MEMBERS OF OUR ILLUSTRIOUS SAN ANTONIO CITY COUNCIL.

MY NAME IS JACK M. FINGER.

A FEW ITEMS TO BRING TO YOUR ATTENTION FOR THIS PORTION OF THE AGENDA, IN DISTRICT 1, MR. TREVINO, YOU'VE GOT A CASE OR TWO OF CONCERN.

Z1, IT'S ABOUT CHANGING A RESIDENTIAL AREA TO A -- WELL, IT SAYS TO A COMMERCIAL.

YEAH.

R4 -- WHAT DOES IT SAY HERE? YES.

CD.

THAT SOUNDS -- CONDITIONAL USE FOR PROFESSIONAL OFFICE.

WELL, SOME PROBLEMS WITH THAT, SIR.

NUMBER ONE, THE ZONING COMMISSION SAID NO TO THAT ONE.

YEAH.

THEY AGREED WITH SOME OF THE PEOPLE THAT WERE SURVEYED IN THE AREA.

YOU HAD ABOUT, WELL, 26 NOTICES THAT GO OUT, SEVEN OF THEM SAID THEY WERE OPPOSED TO IT.

THAT'S QUITE -- THAT'S ABOUT AT LEAST CLOSE TO 1/3 THERE.

YEAH, WHEN YOU GET ANYTHING OVER 5 OR 10%, YES, YOU'VE GOT A

[04:15:01]

CONTROVERSY ON YOUR HANDS.

ALSO THE NORTH CENTRAL NEIGHBORHOOD ASSOCIATION OPPOSED IT.

I GUESS THEY THINK THE COMMERCIAL OFFICE IN THAT AREA IS JUST A BIT TOO INTENSE, AND CONSEQUENTLY, SIR, I BELIEVE IT WOULD BEHOOVE YOU TO SAY NO TO THAT ONE THERE.

A COUPLE OTHER ONES, SIR.

IN -- REGARDING P3 AND Z6, THIS TIME IT'S BEEN MR. CRUZ SHAW'S ITEM.

LET ME TAKE THAT BACK.

I'M GOING TO FINISH UP WITH Z1 HERE.

DISTRICT 1.

MR. TREVINO, Z3, Z3 IS A PROPOSAL TO PUT 10 RESIDENTIAL DWELLING UNITS SHOEHORN THEM INTO ONE LITTLE ADDRESS THERE -- OR TWO LITTLE ADDRESSES, 306, 310 EAST PARK AVENUE THERE.

THERE'S WHERE YOU HAVE 27 NOTICES GO OUT AND OVER 10% SAID THEY DIDN'T LIKE THAT EITHER.

10 RESIDENTIAL UNITS THERE.

YEAH.

IN THE TOBIN HILL AREA.

WHY -- I'M AFRAID THESE REALLY JUST AREN'T -- 10 UNITS IN JUST AN ACRE OR SO THERE? I'M SORRY, THAT IS GETTING JUST A LITTLE BIT TOO DENSE.

AND THEN MR. CRUZ SHAW'S DISTRICT, HE'S NOT IN HIS SEAT RIGHT NOW, I DON'T KNOW WHO'S GOING TO CARRY THE WATER FOR HIM ON THIS ONE, BUT, YEAH, I WISH SOMEONE WOULD SAY SOMETHING ABOUT P3 AND Z6.

THE -- THIS ONE IS ABOUT PUTTING A COMMERCIAL -- MAKING COMMERCIAL CHANGE FROM A RESIDENTIAL ON SOUTH NEW BRAUNFELS AVENUE.

FOR ONE THING, THE DENVER HEIGHTS NEIGHBORHOOD ASSOCIATION OPPOSES THIS THING.

I GUESS THEY THINK IT'S A BIT TOO COMMERCIAL AS WELL.

LET'S SEE IF ANYBODY SAYS NO TO THAT ONE.

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

MICHAEL ADREGO?

>> GOOD AFTERNOON, COUNCIL AND MAYOR.

I AM MICHAEL ADREGO, I WANTED TO SPEAK ON THESE ZONING CASES THAT WERE UNDER CONSIDERATION.

I DO WANT TO ADVOCATE AND -- IN FAVOR FOR ANY ADVANTAGE THAT WOULD BE PROVIDED BY THE CITY COUNCIL TO THE AIRPORT OR, YOU KNOW, TO THE LACKLAND AND THE AIR AVIATION AND THEIR NEEDS.

I DO BELIEVE THAT THE AIRPORT SHOULD BE PROVIDED WITH EVERY ADVANTAGE THAT THEY CAN OBTAIN BECAUSE I BELIEVE THE AIRPORT CAN BE IMPROVED IN A MUCH GREATER CAPABILITY THAN WHAT IT HAS NOW.

AIRLINE FLIGHTS CAN BE IMPROVED THERE, I MYSELF HAVE WORKED FOR THREE MAJOR AIRLINES AND WORKED AT SENIOR MANAGEMENT WITH THOSE AIRLINES, SO I CAN TELL YOU THAT YOU COULD BRING IN A BUNCH OF AIRLINES IN HERE AND IMPROVE THE REVENUE BY 1 TO $3 BILLION PER YEAR JUST BY IMPROVING THE AMOUNT OF AIRLINES AND AIR TRAFFIC PASSENGERS THAT COME THROUGH HERE.

YOU SHOULD KNOW WHICH ROUTES ARE MORE FAVORABLE FOR THE AIRLINE, FOR EXAMPLE, LONDON IS A HIGHLY PRIZED ROUTE FOR AIRLINES IN THE UNITED STATES.

AND ONCE YOU GIVE THAT ADVANTAGE TO THE AIRPORTS TO BE ABLE TO DEVELOP, BECAUSE THE AIRPORTS AND THE AIRLINES HAVE BYPASSED SAN ANTONIO THROUGH THE DECADES PAST, IT'S KIND OF LIKE AN INTERSTATE GOING AROUND TOWN AND SAN ANTONIO'S BEING LEFT OUT OF THE GAME.

BUT SAN ANTONIO CAN JUMP INTO IT BECAUSE THERE ARE SOME ROUTES THAT SAN ANTONIO CAN TAKE ADVANTAGE OF REGARDING THE AIRLINE INDUSTRY.

YOU CAN LOOK ON THE INTERNET ON FLIGHT RADAR 24.COM AND LOOK AT ALL THE AIR TRAFFIC THAT'S UP IN THE AIR RIGHT NOW AT ANY MOMENT ABOVE THE UNITED STATES.

YOU CAN SEE PATTERNS OF HIGHLY TRAFFICKED AIRLINE ROUTES ACROSS THE UNITED STATES.

SO I JUST WANT TO ADVOCATE FOR THAT.

AND, OF COURSE, THE AIRLINES HISTORICALLY HAVE A STARTING SALARY OF $22 AN HOUR.

I DON'T KNOW TOO MANY JOBS IN SAN ANTONIO THAT PAY THAT MUCH.

SO JUST WANT TO SAY THAT.

THANK YOU.

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

ALL RIGHT.

THERE IS A MOTION AND A SECOND FOR THE BALANCE OF THE CONSENT ZONING AGENDA.

PLEASE VOTE.

[Z-1. ZONING CASE # Z2018101 CD (Council District 1): Ordinance amending the Zoning District Boundary from "R-4 AHOD" Residential Single-Family Airport Hazard Overlay District to "R-4 CD AHOD" Residential Single-Family Airport Hazard Overlay District with a Conditional Use for a Professional Office on Lot 1, Block 3, NCB 10024, located at 273 Redrock Drive. Staff recommends Approval. Zoning Commission recommends Denial.]

MOTION CARRIES.

ITEM Z1.

>> CLERK: Z2018101 FROM R4 TO

[04:20:03]

R4CD WITH A CONDITIONAL -- APPROVAL.

ZONING COMMISSION RECOMMENDS DENIAL.

26 NOTICES MAILED, 0 IN FAVOR, EIGHT OPPOSED.

NORTH CENTRAL NEIGHBORHOOD ASSOCIATION IS IN OPPOSITION.

THIS WILL REQUIRE NINE VOTES TO APPROVE DUE TO OPPOSITION EXCEEDING 20% AND I BELIEVE THE APPLICANT HAS AN AMENDMENT TO THE SITE PLAN.

>> MAYOR NIRENBERG: COUNCILMAN TREVINO?

>> TREVINO: THANK YOU, MAYOR.

AT THIS MOMENT I'D LIKE TO CALL UP MR. JIMENEZ TO MAKE THAT AMENDMENT.

>> ROGER JIMENEZ.

I'D LIKE TO AMEND THE SITE PLAN AND CONTINUE THIS FOR NEXT MONTH, IF POSSIBLE, SIR.

>> TREVINO: DO YOU HAVE THE --

>> YES, I DO.

AND I'VE SUBMITTED THAT ALSO TO THE CASE MANAGER.

>> TREVINO: OKAY.

CAN WE GET THAT TO THE CITY CLERK SO WE CAN GET IT ON THE RECORD.

THANK YOU, MR. JIMENEZ.

THEREFORE, MOTION TO CONTINUE TO DECEMBER 6 TO REVIEW AMENDED SITE PLAN.

>> THANK YOU, SIR.

>> MAYOR NIRENBERG: THERE'S A MOTION AND A SECOND FOR CONTINUANCE OF ITEM Z1.

PLEASE VOTE.

[P-1 & Z-2. P-1. PLAN AMENDMENT CASE # 18059 (Council District 1): Ordinance amending the San Antonio International Airport Vicinity Land Use Plan, a component of the Comprehensive Master Plan of the City, by changing the future land use from “High Density Residential” to “Regional Commercial” on 0.462 acres out of NCB 11714, located at 9215 Lorene Street. Staff and Planning Commission recommend Approval. (Associated Zoning Case Z2018193) Z-2. ZONING CASE # Z2018193 (Council District 1): Ordinance amending the Zoning District Boundary from "MF-33 AHOD" Multi-Family Airport Hazard Overlay District to "C-3 AHOD" General Commercial Airport Hazard Overlay District on 0.462 acres out of NCB 11714, located at 9215 Lorene Street. Staff and Zoning Commission recommend Approval, pending Plan Amendment. (Associated Plan Amendment 18059)]

MOTION CARRIES.

ITEMS P1 AND Z2.

>> CLERK: PLAN AMENDMENT 18059 IN ZONING CASE Z2018183 AMENDING THE SAN ANTONIO INTERNATIONAL AIRPORT FROM HIGH DENSITY RESIDENTIAL TO REGIONAL COMMERCIAL, FROM MF33 TO C-3 LOCATED AT 9215 LORRAINE STREET.

STAFF PLANNING AND ZONING COMMISSION RECOMMEND APPROVAL, SEVEN NOTICES MAILED, ONE IN FAVOR, 0 OP BOWED, AND THE -- OPPOSED AND THE APPLICANT IS AMENDING HIS ZONING CASE.

NAIRNZ COUNCILMAN VE 18.

>> MAYOR NIRENBERG: COUNCILMAN TREVINO?

>> TREVINO: THANK YOU, MAYOR.

AT THIS POINT I'D LIKE TO ASK FOR THE AMENDMENT.

>> WE'D LIKE TO AMEND OUR REQUEST TO CD3 WITH CONDITIONAL USE FOR FULL SALE VEHICLE SALES AND SERVICE AND THE STAFF HAS THE SITE PLAN ASSOCIATED WITH THAT.

>> TREVINO: THANK YOU, MR. GRIFFIN.

I MOTION TO APPROVE THIS ITEM AS AMENDED.

>> MAYOR NIRENBERG: THERE'S A MOTION AND A SECOND FOR APPROVAL FOR P1 AND Z2 AS AMENDED.

PLEASE VOTE.

[Z-4. ZONING CASE # Z2018252 (Council District 2): Ordinance amending the Zoning District Boundary from "C-2 RIO-1 DN UC-2 NCD-9 AHOD" Commercial River Improvement Overlay Development Node Broadway Urban Corridor Westfort Neighborhood Conservation Overlay Airport Hazard Overlay District and "IDZ RIO-1 DN UC-2 NCD-9 AHOD" Infill Development Zone River Improvement Overlay Development Node Broadway Urban Corridor Westfort Neighborhood Conservation Overlay Airport Hazard Overlay District to "IDZ RIO-1 DN UC-2 NCD-9 AHOD" Infill Development Zone River Improvement Overlay Development Node Broadway Urban Corridor Westfort Neighborhood Conservation Overlay Airport Hazard Overlay District with uses permitted in "O-2" High Rise Office District, "C-2" Commercial District and a Bar/Tavern with or without cover charge 3 or more days per week on Lots 1-4, 7-12, P-100, P-101, P-102, P-103, P-105, and P-106, Block 33, NCB 1763, generally located at 2100 Broadway Street. Staff and Zoning Commission recommend Approval. (Continued from September 20, 2018)]

MOTION CARRIES.

ITEM Z4.

>> CLERK: Z2018252 FROM C-2 NIDZ TO IDZ WITH USE -- AUDIO] -- ALL THE DISTRICTS WILL REMAIN UNCHANGED GENERALLY LOCATED AT 2100 BROADWAY STREET.

STAFF AND ZONING COMMISSION RECOMMEND APPROVAL.

19 NOTICES MAILED, EIGHT IN FAVOR AND 0 OPPOSED.

>> MAYOR NIRENBERG: OKAY.

COUNCILMAN TREVINO -- EXCUSE ME, COUNCILMAN SALDAÑA?

>> SALDAÑA: MAYOR, I WILL TAKE THIS UNDER COUNCILMAN TREVINO'S RECUSING HIMSELF OF THIS ITEM AND COUNCILMAN SHAW IS ABSENT IN MAKING A MOTION TO APPROVE.

>> MAYOR NIRENBERG: OKAY.

THERE'S A MOTION AND A SECOND FOR APPROVAL OF ITEM Z4.

PLEASE VOTE.

[Z-12. ZONING CASE # Z2018318 S (Council District 7): Ordinance amending the Zoning District Boundary from "C-3 AHOD" General Commercial Airport Hazard Overlay District to "C-3 S AHOD" General Commercial Airport Hazard Overlay District with Specific Use Authorization for Auto Paint & Body Repair on Lot 5, Block 2, NCB 18560, located at 7539 Bandera Road. Staff and Zoning Commission recommend Approval, with Conditions.]

MOTION CARRIES.

ITEM Z12.

>> CLERK: Z2018318 FROM C3 TO C-3 S WITH A SPECIFIC USE AUTHORIZATION FOR AUTO BODY AND PAINT REPAIR LOCATED AT 7539 BANDERA ROAD.

STAFF AND ZONING COMMISSION RECOMMEND APPROVAL WITH CONDITIONS, HOURS OF OPERATIONS FROM 7:00 A.M. TO 6:00 P.M.

MONDAY THROUGH SUNDAY, 18 NOTICES MAILED, TWO IN FAVOR, ONE OPPOSED.

>> MAYOR NIRENBERG: COUNCILWOMAN SANDOVAL?

>> SANDOVAL: THANK YOU, MAYOR.

I'D LIKE TO MOVE TO APPROVE WITH CONDITIONS AS READ.

>> MAYOR NIRENBERG: OKAY.

THERE'S A MOTION AND A SECOND FOR APPROVAL OF ITEM Z12 WITH CONDITIONS AS READ.

PLEASE VOTE.

MOTION CARRIES.