* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:35] GOOD AFTERNOON. WELCOME TO THE CITY COUNCIL B SESSION OF NOVEMBER, THE 28TH, 2018. COUNCIL MEMBER VINNO, COUNCIL MEMBER SHAW HERE. COUNCIL MEMBER VERAN WILL NOT BE HERE. SHE IS ATTENDING THE WORLD HERITAGE CITIES CONFERENCE COUNCIL MEMBER SALDANA. COUNCIL MEMBER GONZALEZ. COUNCIL MEMBER BROCK HOUSE COUNCIL MEMBER SANDOVAL HERE. COUNCIL MEMBER ELIAS. COUNCIL MEMBER COURAGE RESIDENT COUNCIL MEMBER PERRY HERE. AND MAYOR NURENBERG HERE. MAYOR, WE DO HAVE A QUORUM. GOOD AFTERNOON EVERYONE. WELCOME TO OUR CITY COUNCIL B SESSION AGENDA. THE TIME IS 2:16 PM THANK YOU FOR YOUR PATIENCE. UH, WE HAVE ONE ITEM ON THE AGENDA REGARDING THE 2019 TO 20 TAX ABATEMENT GUIDELINES. SO I'LL, UM, START WITH RENEE. THANK YOU, MAYOR. GOOD AFTERNOON, EVERYONE THERE, CHERYL. ALRIGHT, I'LL GO AHEAD AND START UP. BEFORE I START UP, UM, I DO WANNA INTRODUCE A FEW FOLKS BECAUSE WE'VE GONE THROUGH A LOT OF EFFORT AND TIME TO PUT THESE TOGETHER. I WANNA ACKNOWLEDGE MY STAFF. A LOT OF 'EM ARE HERE. JESSICA HARRIS, OR OUR ASSISTANT DIRECTOR OF INDUSTRY, HAS BEEN HEAVILY ENGAGED IN THIS PROCESS. AND HER STAFF, ALEX LOPEZ, IS HERE FROM THE EQUITY OFFICE. YOU'LL SEE THAT THIS, UH, ADDRESSES SOME EQUITY ISSUES THAT WE, WE'VE BEEN WORKING ON. AND THEN WE, UH, ALSO ENGAGED SOME CONSULTANTS AS PART OF THIS WORK, UM, FROM E P S, ANDREW KNUTSON, THE MANAGING DIRECTOR, AND MATT PROSSER, THEIR VICE PRESIDENT. JUST WANNA ACKNOWLEDGE THAT, UM, ALL OF THESE INDIVIDUALS PLAYED AN ACTIVE ROLE IN PUTTING TOGETHER WHAT YOU KIND OF SEE TODAY. AND I ALSO WANNA GIVE A LOT OF, UM, CREDIT AND APPRECIATION TO THE E W D C, THE ECONOMIC AND WORKFORCE DEVELOPMENT COMMITTEE. UH, WE'VE BEEN AT THIS SINCE MARCH. INSIDE OF THAT COMMITTEE, WE'VE PRESENTED SEVERAL TIMES TO THEM. AND SO WE'VE GOTTEN A LOT OF GREAT FEEDBACK FROM THE E W D C. SO, BEFORE I START, I DO WANNA PROVIDE A LITTLE BIT OF, UH, CONTEXT, WHOOPS, ON WHAT WE'LL BE PRESENTING TODAY. AS I MENTIONED, THIS EFFORT BEGAN IN EARNEST BACK IN MARCH WHEN WE, ALONG WITH U T SS A REALLY PROVIDED A LOT OF CONTEXT AND PROVIDED DISCUSSION AROUND THE NATIONAL AND LOCAL TOPIC OF ECONOMIC SEGREGATION. AT THE TIME, UM, SAN ANTONIO WAS BEING DISCUSSED QUITE HEAVILY AND STILL IS IN TERMS OF ECONOMIC SEGREGATION AROUND INCLUSIVE ECONOMIC DEVELOPMENT. AT THE SAME TIME, FROM A POLICY STANDPOINT, AS YOU KNOW, EQUITY ASSESSMENTS ARE HAPPENING WITHIN THE DEPARTMENTS. SO HOW WE WERE GOING TO EMBED AN EQUITABLE APPROACH INTO OUR PROGRAMMING WAS ALSO ADDITIONAL CONTEXT TO PROVIDE YOU. SO IT WAS, IT WAS THOSE TWO THINGS THAT WE INTRODUCED IN MARCH TO E W D C AND PROVIDED A LOT OF CONTEXT. WE ACTUALLY USED THE DISTRESSED COMMUNITY INDEXED, UH, STUDY BY THE, UH, INNOVATION, UH, GROUP TO PROVIDE ADDITIONAL CONTEXT. UH, THIS STUDY BASICALLY HIGHLIGHTS THOSE AREAS OF SAN ANTONIO THAT ARE, UH, THEY'RE EXPERIENCING ECONOMIC GROWTH, ECONOMIC PROSPERITY, AND, AND THOSE THAT AREN'T. ADRIAN PETTI IN MY OFFICE, WHO'S GONNA PRESENT A LITTLE BIT OF THE PRESENTATION IS GONNA GO OVER IT A LITTLE BIT MORE IN DEPTH WITH YOU IN A FEW MINUTES. BUT BASICALLY, THIS STUDY TOOK SEVEN DIFFERENT, UH, DATA POINTS, SEVEN DIFFERENT METRICS THAT MEASURES THE ECONOMIC VITALITY, THE WELLBEING OF COMMUNITIES, AND IT COMPARES TO THEM NATIONALLY. SO THIS IS A NATIONAL INDEX, AND, UH, IT TAKES THESE SEVEN, UH, METRICS. IT CREATES A AVERAGE AND THEN CONVERTS IT TO A PERCENTAGE. AND THE IDEA HERE IS THE, UH, AREAS IN RED AND ORANGE ARE THE MOST DISTRESSED IN TERMS OF A, A NATIONAL VIEW. UM, YOU KNOW, THE, THE FUNNY THING IS WHEN WE ARE PRESENTING THIS, BECAUSE WE'VE BEEN AT THIS FOR A WHILE, THIS MAP WAS NO BIG SURPRISE TO, TO E W D C. IT WAS NO BIG SURPRISE TO THOSE IN THE COMMUNITY. THIS IS THE SAME MAP THAT YOU ALL SEE WHEN WE TALK ABOUT HEALTH OUTCOMES, WHEN WE TALK ABOUT INFANT MORTALITY, WHEN WE TALK ABOUT DOMESTIC ABUSE, WHEN WE TALK ABOUT POVERTY. SO I THINK IT WAS A VERY RELATABLE MAP. POVERTY IN PARTICULAR IS WHAT WE KIND OF LANDED ON. AND YOU'RE GONNA SEE THAT EMBEDDED IN OUR PRESENTATION [00:05:01] IN A LITTLE BIT. THESE AREAS OR THE AREAS WHERE RESIDENTS STRUGGLE TO ACCESS ECONOMIC, ECONOMIC, ECONOMIC OPPORTUNITY. UH, THIS MAP HIGHLIGHTS THOSE THAT ARE MOST DISTRESSED. LIKE I SAID, THOSE EXHIBITING, UH, A SCORE OF 80 AND ABOVE. THE BIG TAKEAWAY IS THAT AROUND 400,000 PEOPLE, 22% OF THE POPULATION LIVE IN THESE AREAS. SO THIS SITUATION, UH, NOT ONLY CREATES, UH, INDIVIDUAL, YOU KNOW, LESS INDIVIDUAL OPPORTUNITY FOR OUR RESIDENTS, BUT IT REALLY IS AN ECONOMIC, UH, DEVELOPMENT ISSUE. IT HINDERS OUR REGIONAL GROWTH. IT DEPRIVES PEOPLE FROM SKILLED WORKERS. IT, UH, INHIBITS POTENTIAL INNOVATORS. AND AS YOU ALL KNOW, THERE IS A COST INDIRECT AND DIRECT TO BUSINESS. BECAUSE OF THIS SITUATION. THEY STRUGGLE TO FIND SKILLED WORKERS. SO, UH, WE WANTED TO CONTINUE OUR ECONOMIC DEVELOPMENT STRATEGY. THOSE STRATEGIES YOU'VE SEEN MOST RECENTLY OVER THE LAST COUPLE OF YEARS AS WE'VE WORKED WITH JENNA, STRATEGIES AROUND TARGETED INDUSTRY, AROUND WAGES, AROUND, UM, HIGH WAGES IN PARTICULAR. BUT WE ALSO WANTED TO FIND WAYS TO PROVIDE MORE OPPORTUNITY TO MORE PEOPLE, PARTICULARLY IN THESE AREAS. SO THIS RECOMMENDATION IS NOT NECESSARILY AN INCLUSIVE GROWTH RECOMMENDATION. THIS IS REALLY A GROWTH STRATEGY FOR US, AND IT BUILDS UPON THE WORK THAT WE'VE BEEN DOING WITH E D F OVER THE LAST FIVE YEARS IN TERMS OF TARGETED INDUSTRY GROWTH. ADDITIONALLY, TO PROVIDE A LITTLE BIT MORE OF CONTEXT, WE REALLY SAW THE SA TOMORROW PLANNING PROCESS AS A GREAT OPPORTUNITY FOR US POVERTY. AND SOME OF THE ISSUES THAT I OUTLINED, YOU KNOW, WE DIDN'T GET HERE OVERNIGHT AND WE'RE NOT GONNA FIX THESE ISSUES OVERNIGHT. BUT THE REGIONAL CENTER CONCEPT REALLY PROVIDES US AN OPPORTUNITY TO LAYER OUR ECONOMIC DEVELOPMENT INCENTIVES WITH THOSE FUTURE SUBAR PLANS. AND THOSE SUB AREA PLANS HAVE TRANSPORTATION, UH, AS PART OF IT, HAVE SUSTAINABILITY, HAVE INFRASTRUCTURE, HAVE HOUSING. SO WE REALLY SEE THIS AS A GREAT OPPORTUNITY TO EVENTUALLY COORDINATE ALL OF THOSE EFFORTS. AS I MENTIONED, THESE SUB AREA PLANS WILL BE ADOPTED OVER THE NEXT THREE TO FIVE YEARS, AND WE INTEND ON INCORPORATING THESE REG REGIONAL CENTERS INTO OUR GEOGRAPHIC FOCUS. SO LET'S GET TO WHAT WE ARE HERE TO TALK ABOUT. WHAT WE ARE GOING TO PRESENT TO YOU TODAY. THE TAX ABATEMENT POLICY. UH, THESE, THIS IS A GREAT OPPORTUNITY, WE THOUGHT FOR, FOR SEVERAL DIFFERENT REASONS. ONE OF THE REASONS IS IT'S THIS POLICY THAT REALLY OUTLINES WHAT YOU ALL FIND AS IMPORTANT IN TERMS OF WHAT WE WILL PROVIDE A TAX ABATEMENT FOR. IT OUTLINES THE WAGES, THE TARGETED INDUSTRIES, THE GEOGRAPHIES THAT ARE IMPORTANT TO US FROM A POLICY STANDPOINT IN ORDER TO OFFER TAX ABATEMENTS. UH, THEY ALSO HAVE TO BE RENEWED EVERY TWO YEARS. SO IT REALLY GIVES US AN OPPORTUNITY TO PRESENT THIS NEW CONCEPT TO YOU, BUT HAVE A WAY OF COMING BACK AND CHECKING IN WITH YOU BECAUSE STATE LAW REQUIRES US TO COME BACK AND REVIEW, UH, GUIDELINES EVERY TWO YEARS. IN ADDITION TO THAT, LEMME PROVIDE A A LITTLE BIT MORE CONTEXT IN TERMS OF, YOU KNOW, WHAT WE DO WITH THE TAX ABATEMENT. WE'RE ONLY TALKING ABOUT AROUND TWO OR THREE TAX ABATEMENTS PER YEAR. AND IT'S A TAX ABATEMENT THAT ALLOWS US TO ABATE THE TAXES OF NEW INVESTMENT. THESE ARE PROJECTS THAT ARE COMPETITIVE. THESE ARE PROJECTS, PROJECTS THAT WE WORK WITH, WITH JENNA THAT COME TO THE TABLE THAT ARE LOOKING AT SAN ANTONIO, BUT ARE ALSO LOOKING AT OTHER COMMUNITIES. ALBUQUERQUE, OKLAHOMA CITY, SAN JOSE. WE'RE IN A COMPETITION FOR THESE PROJECTS. UH, THE ACTUAL MECHANICS OF TAX ABATEMENT. WE, WE, IN ESSENCE, CAN ABATE AROUND 5,600 PER MILLION DOLLARS OF VALUE. AGAIN, THIS IS INVESTMENT THAT IS NOT HERE, AND WE CANNOT ABATE PER STATE STATUTE INVESTMENT. THAT'S ALREADY ON THE BOOKS. SO THIS IS NET NEW INVESTMENT. SO WITH THAT, WE'RE GONNA JUMP RIGHT INTO, UH, SOME OF THE NATIONAL FINDINGS, AND THEN WE'RE GONNA PRESENT TO YOU THE GUIDELINES THAT WE ARE RECOMMENDING, UH, MOVING FORWARD IN 2019. ADRIAN PEREZ IS OUR POLICY ADMINISTRATOR. EARLY ON, ON THE SA TOMORROW PROCESS, I SAW A REAL OPPORTUNITY TO ASSIGN A SPEC SPECIFIC STAFF MEMBER TO INCORPORATE SA TOMORROW. AND WITH THE EQUITY DISCUSSIONS TAKING PLACE, HE WAS THE IDEAL POLICY ADMINISTRATOR TO PUT THIS ALL TOGETHER. HE'S BEEN WORKING HAND IN HAND WITH E P S TO LOOK AT DIFFERENT IDEAS AND BRING HIM BACK TO THE TEAM TO VET. SO I'M GONNA LET ADRIAN KIND OF OUTLINE WHERE WE'RE AT IN TERMS OF THE RECOMMENDATIONS. THANK YOU, RENEE. UH, AS RENEE MENTIONED, THIS HAS BEEN [00:10:01] A TREMENDOUS TEAM EFFORT. WE'VE WORKED WITH E P SS AND, UH, COMMUNITY MEMBERS. WE'VE DONE ROADSHOWS WITH LOTS OF PARTNERS TO, UH, PULL IN A LOT OF GOOD PERSPECTIVE ON THIS. UM, SO AS RENEE MENTIONED, WHEN WE BROUGHT E P SS ON AND, AND THROUGH OUR WORK WITH THE E W D C, UH, WHAT WE WERE REALLY AIMING TO DO WAS BRING IN AN IMPARTIAL THIRD PARTY, A CONSULTANT WHO COULD HELP US LOOK AROUND THE COUNTRY AND IDENTIFY BEST PRACTICES. WHEN WE SAY BEST PRACTICES, WE'RE TALKING ABOUT INCLUSIVE GROWTH, BEST PRACTICES AROUND ECONOMIC DEVELOPMENT TOOLS. AND SO WE WANNA BE VERY CLEAR ABOUT THAT AND THAT WHAT'S GOING ON AROUND THE COUNTRY AS A NATIONAL TREND IS TO FOCUS ON THE GROWTH ACTORS AND THE GROWTH TOOLS THAT A COMMUNITY'S USING. WHEN I SAY GROWTH ACTORS, I MEAN THE CHAMBERS, THE E D F, THE FOLKS WHO ARE FOCUSED ON GROWING THE ECONOMY, PULLING THOSE JOBS THAT INVESTMENT IN, AND THE TOOLS THAT HAVE TRADITIONALLY BEEN KIND OF SILOED AND FOCUSED ON THAT ALMOST EXCLUSIVELY SOMETIMES. AND SO, WHO'S USING THOSE TOOLS TO INCLUDE AND REALLY LOOK AT, AT AN EQUITABLE WAY OF, OF USING THOSE TOOLS? AND SO THAT'S WHAT A LOT OF WHAT E P S DID FOR US. THEY LOOKED AROUND THE COUNTRY AND BROUGHT THAT TOGETHER FOR US. THEY ALSO, UH, HELPED US REACH OUT TO SITES ELECTORS AROUND THE COUNTRY TO GET SOME PERSPECTIVE ON JUST HOW FAR WE COULD GO WITH, WITH LOOKING AT THESE TOOLS FROM AN INCLUSIVE GROWTH PERSPECTIVE WITHOUT AFFECTING THE COMPETITIVENESS OF THE TOOL. 'CAUSE KEEP IN MIND, THESE TOOLS ARE REALLY USED FOR US TO COMPETE TO GET NEW LARGE PROJECTS INTO SAN ANTONIO. SO THERE IS A POINT OF DIMINISHING RETURNS WHEREBY A COMPANY MAY LOOK AT WHAT PEOPLE HAVE LAYERED ONTO A POLICY AND SAY, YOU KNOW WHAT? I WAS GONNA BRING 500 JOBS OR CONSIDER SAN ANTONIO FOR 500 JOBS. I'LL NOW JUST GO MAYBE UP THE ROAD A LITTLE BIT. 'CAUSE THEY DON'T REQUIRE ANY OF THAT OF ME, AND I'LL STILL USE THE INFRASTRUCTURE AND, AND THE WORKFORCE FROM THAT AREA. SO WE WANTED TO BE VERY CAREFUL TO BE VERY TACTFUL AND, AND BALANCED IN TERMS OF HOW WE WORKED WITH THE PRIVATE SECTOR, UH, THE SITE SELECTORS, AND REALLY BALANCED THESE TWO ELEMENTS. SO E P S HELPED US DO A LOT OF THIS WORK. UM, IT WAS REALLY THE, THIS WAS REALLY THE FOUNDATION OF THE R F P THAT WE PUT OUT AND, AND SECURED FROM E P S. SO GIVEN THAT WE'LL SHARE, UM, A LITTLE BIT OF THE FINDINGS, E P S IS PUTTING OUT A REPORT. UH, THE FIRST HALF WILL BE AVAILABLE THIS FRIDAY. UH, THE NEXT HALF WILL BE AVAILABLE NEXT FRI UH, NEXT FRIDAY. UM, BUT WE'RE GONNA SHARE JUST A COUPLE OF FINDINGS THAT WE THOUGHT WERE INTERESTING FROM A VERY HIGH LEVEL. THE FIRST THING IS THAT WHEN WE LOOKED AT THE DISTRESSED COMMUNITIES INDEX, AS RENEE POINTED OUT, WE COULD USE IT AS KIND OF A PROXY TO IDENTIFY HOW DIFFERENT METROS WERE DOING POST-RECESSION. SO POST-RECESSION, THE REASON THAT'S IMPORTANT IS BECAUSE AT THE END OF THE RECESSION TO 2015, THAT IS A POINT IN TIME WHEN THE COUNTRY IS ADDING JOBS. THAT'S WHEN JOBS ARE COMING BACK TO THE COUNTRY. SO IT'S A GOOD TIME TO LOOK TO SEE HOW IS GROWTH AND PROSPERITY SHARED AROUND DIFFERENT GEOGRAPHIES. AND SO, UH, THROUGH THE DISTRESS COMMUNITIES INDEX, WE'RE ABLE TO GET A DISTRESS SCORE FOR EACH OF THESE DIFFERENT METROS. WHAT WE FOUND WAS FOR THOSE METROS WHOSE DISTRESS SCORE WAS A LITTLE HIGHER, SAY IN BALTIMORE OR CINCINNATI, THEIR ECONOMIC DEVELOPMENT POLICIES REALLY REFLECTED KIND OF A WIDE OPEN PERSPECTIVE. THEY'RE REALLY TRYING TO STEM THE TIDE OF THE JOB LOSS THAT THEY'RE SEEING, EVEN AT A TIME WHEN THE COUNTRY IS GAINING JOBS. SO WE'VE, WE'VE GOT CIRCLED THERE THAT NEGATIVE 1%. SO AT A TIME IN THE REST OF THE COUNTRY'S ADDING JOBS, THEY'RE STILL SHEDDING JOBS. SO THEIR POLICIES REFLECT A FOCUS ON TRYING TO JUST STEM THE TIDE, RIGHT? ON THE OPPOSITE END OF THE SPECTRUM, WHEN WE SEE METROS WHO ARE PERFORMING EXTREMELY WELL, THEIR ECONOMIES MAYBE HAVE REVED A LITTLE TOO HOT, THEIR INCOMES HAVE SHOT UP, THEY'RE DEALING WITH MUCH MORE ACUTE ISSUES. OUR NEIGHBORHOOD TO THE NORTH IN AUSTIN, RIGHT? SO THEY'RE DEALING WITH, UH, REAL GENTRIFICATION ISSUES, ISSUES WHERE PEOPLE ARE LEAVING THE CITY 'CAUSE THEY CAN'T AFFORD TO LIVE THERE ANYMORE. THEY'RE NOT WORRIED ABOUT LOSING A TECH COMPANY NECESSARILY. THEY HAVE A LOT OF THOSE KINDS OF JOBS. AND SO THEIR POLICIES ARE A LITTLE DIFFERENT. THEY'RE, THEY'RE FOCUSED ON THOSE ACUTE ISSUES THAT THEY'RE FACING RIGHT NOW. WHAT WE SAW IN SAN ANTONIO IS THAT WE FELL SORT OF IN THE MIDDLE OF THE PACK WITH THAT, RIGHT? SO WHAT YOU'LL SEE IS ON CHANGE IN BUSINESS, UH, AND CHANGE IN EMPLOYMENT RELATIVELY HEALTHY, RIGHT? SO POST-RECESSION, WE'RE GAINING THOSE JOBS BACK, BUT WE STILL HAVE THAT POVERTY RATE, THAT KIND OF HIGHER LEVEL POVERTY RATE. AND SO WHAT WE SAW WITH THIS IS IT CONTEXTUALLY GAVE US A SENSE OF, IN TERMS OF ECONOMIC DEVELOPMENT POLICY IN SAN ANTONIO, WE REALLY HAVE TO KEEP OUR EYE ON THE BALL FOR TARGET INDUSTRIES, THOSE HIGH WAGE JOBS, WE STILL HAVE TO PURSUE THOSE IN EARNEST WITH ALL OF OUR EFFORT, THE WAY WE HAVE BEEN DOING IN THE LAST 10 YEARS. HOWEVER, WE DO NEED TO START FOCUSING IN EARNEST IN TERMS OF PROVIDING MORE INROADS FOR MORE PEOPLE. AND AS RENEE POINTED OUT, PLACE MATTERS. AND SO WHEN WE LOOKED AT THIS CONTEXTUALLY, WE REALLY WANTED TO SIT DOWN IN WHO WE ARE ECONOMICALLY AND HOW OUR POLICY SHOULD REFLECT THAT AS WE'RE SEEING ACROSS THE COUNTRY HERE. SO THAT'S THE FIRST PIECE. THE NEXT PIECE IS, AS WE LOOKED AROUND AT DIFFERENT PROGRAMS, WE SAW A COUPLE OF DIFFERENT ELEMENTS THAT WE THOUGHT WERE INTERESTING. UM, TIERED INCENTIVES. A LOT OF CITIES ARE STILL LOOKING AT DIFFERENT GEOGRAPHIES FOR DIFFERENT FACTORS TO CONSIDER IN TERMS OF HOW MUCH OF AN INCENTIVE THEY PROVIDE. IF YOU, UH, GO TO THIS AREA, WE'LL GIVE YOU MORE. IF YOU GO OVER HERE, IF YOU CREATE THIS TYPE OF JOB, WE'LL GIVE YOU LESS. UM, AND SO THAT'S VERY COMMON, ALTHOUGH THERE IS A LITTLE BIT OF PUSHBACK ON THE GEOGRAPHIES. FROM THE SITE SELECTOR SIDE, WE'RE SEEING A NEW CONCEPT OF WIN-WIN PROJECTS, WHERE SOME COMMUNITIES ARE LOOKING [00:15:01] AT MODELS WHERE IF A NEW PROJECT COMES INTO THEIR COMMUNITY, THEY'RE LOOKING AT THE REVENUE STREAMS GENERATED BY THAT PROJECT AND SAYING, CAN WE CREATE AN INSTANCE WHERE IN NO, IN NO WAY COULD A PROJECT COME IN AND NOT BENEFIT A DISTRESSED COMMUNITY. LET'S GUARANTEE THAT A PIECE OF THE REVENUE STREAM WILL ALWAYS GO TO THE DISTRESSED COMMUNITY, SO THAT AS PROJECTS COME IN THE DOOR, WE KNOW THAT THAT POPULATION HAS BENEFITED. SO WE THOUGHT THAT WAS A PRETTY INTERESTING CONCEPT THAT WAS OUT THERE AND IN PLAY. UM, HIRING FROM, UH, TARGETED, UH, WORKER POOLS, UH, INTEREST IN WORKING WITH NONPROFITS AND OTHER FOLKS WHO ARE PROVIDING PRESCREENING OR CANDIDATES INTO JOBS. THAT WAS SOMETHING OF, OF HIGH INTEREST. AND MORE IMPORTANTLY THAN NEXT POINT, THE TRAINING AND EDUCATION, WHAT WE'RE SEEING IS A LOT MORE COMMUNITIES REALIZE THAT IT'S NOT JUST ENOUGH TO GIVE SOMEBODY A SCHOLARSHIP, YOU HAVE TO FOCUS ON THE WHOLE PERSON IN TERMS OF THEIR EXPERIENCE. YOU CAN GIVE THEM A SCHOLARSHIP, BUT IF THEY HAVE, UH, TRANSPORTATION INSECURITY, HOUSING INSECURITY, FOOD INSECURITY, THOSE OUTCOMES ARE SLOWED, UH, GREATLY SLOWED. AND SO WORK WITH NONPROFITS TO PROVIDE WRAPAROUND SERVICES IS SOMETHING THAT FOLKS ARE STARTING TO REALLY WAKE UP TO AND TRYING TO FIGURE OUT HOW TO PUT TOGETHER. AND THEN FINALLY, WITH GEOGRAPHY, UH, SOMETHING WE SAW WAS THAT MANY COMMUNITIES WOULD PICK A NUMBER OF VARIABLES TO IDENTIFY WHICH AREAS WERE DISTRESSED. AND SO THAT COULD BE ANYTHING FROM CODE ENFORCEMENT ISSUES TO, TO LOOSE DOGS, ET CETERA. BUT WHEN WE SAW PROGRAMMATIC INTERVENTIONS, THEY WEREN'T NECESSARILY MOVING THE NEEDLE IN TERMS OF HOW THEY DECIDED ON THOSE GEOGRAPHIES. SO THE EXAMPLE THAT WE GIVE IS, YOU KNOW, IT'S KIND OF A CARICATURE OF AN EXAMPLE, BUT IF YOU HAVE A GEOGRAPHY THAT YOU'RE TRYING TO CREATE EMPLOYMENT IN, AND YOU DROP A PROJECT INTO THAT GEOGRAPHY, UH, THE FOLKS IN THAT NEIGHBORHOOD MAY NOT HAVE THE EDUCATION TO COMPETE FOR THOSE JOBS. AND SO YOU REALLY HAVE AN IMPACTED THE RESIDENTS IN THAT NEIGHBORHOOD. BUT YOU PUT A PROJECT THERE, WHICH IS GREAT, IT'S GONNA CREATE MOMENTUM. IT'S DEFINITELY POSITIVE. UH, BUT CONNECTING ALL OF THOSE ELEMENTS IN TERMS OF WHAT WE'RE TRYING TO CHANGE WAS SOMETHING WE WANTED TO BE A LITTLE BIT COGNIZANT OF AS WE WENT FORWARD WITH OUR RECOMMENDATIONS. SO THOSE ARE SOME OF, SOME OF THE KIND OF HIGH LEVEL FINDINGS, SOME OF THE THINGS THAT WE THOUGHT WERE INTERESTING THAT SHAPED THE RECOMMENDATIONS, UH, COMING UP. SO, UH, WITH THAT, UM, I'LL GO AHEAD AND, UH, TOUCH BASE ON THE ACTUAL RECOMMENDATIONS HERE. UM, SO TO, TO REITERATE, AS WE WERE PUTTING THESE TOGETHER, SOME OF THE GUIDING PRINCIPLES THAT WE WERE REALLY LOOKING AT, UH, WERE THE FACT THAT WE HAVE TO KEEP OUR EYE ON THE BALL FOR THOSE 21ST CENTURY JOBS, FOCUS ON INROADS, BUILD A POLICY THAT BENEFITS BOTH THE PROJECT AND THE COMMUNITY IN A BALANCED WAY THAT BUSINESS CAN, CAN KINDA MOVE LOCKSTEP WITH. UM, WE WANTED TO MAKE SURE THAT WE FOCUSED ENTIRELY ON THE FACT THAT WHAT WE'RE HEARING AND WHAT I THINK EVERYBODY COULD AGREE WITH IS THAT SKILL OR, OR, OR TRAINING OR, OR, UH, WORKFORCE TRAINING IS REALLY THE FUEL FOR SOCIOECONOMIC MOBILITY. THAT'S, THAT'S THE VALUE FOR EVERYBODY. AND THEN FINALLY, AS WE DEVELOPED THIS, WE DIDN'T WANT TO COME TO COUNCIL WITH A NET NEW ASK UNTIL WE COULD LEGITIMATELY LOOK AT ALL OF OUR PROGRAMS AND SAY, SAY, OKAY, HOW CAN WE POINT WHAT THE ASSETS THAT COUNCIL HAVE GIVEN US? HOW CAN WE POINT THE POINT THOSE IN THE RIGHT, SAME DIRECTION? AND ONCE WE HAVE EVERYTHING WORKING TOGETHER, IF THERE IS A NEW ASKED TO BE HAD, MAYBE THAT COMES, BUT WE WANTED TO FOCUS ON GETTING WHAT WE HAVE ON THE TABLE NOW POINTED IN THE SAME DIRECTION. SO THESE ARE SOME OF THE GUIDING PRINCIPLES THAT SHAPED OUR ULTIMATE RECOMMENDATION. SO, JUMPING RIGHT INTO SOME OF THE UPDATES TO THE TAX ABATEMENT POLICY, THE FIRST THING THAT, THAT WE'RE CHANGING IS THE GEOGRAPHY. UH, WE'RE GOING TO FOCUS ON WHAT WE NOW CALL THE INCLUSIVE GROWTH AREA. THIS WILL BE MOVING AWAY FROM, UH, THE ICRP, WHICH WE USE CURRENTLY, WHICH IS KIND OF A ONE GEOGRAPHY THAT HOUSED BOTH OUR HOUSING AND ECONOMIC DEVELOPMENT POLICIES. KIND OF COMBINE THEM IN ONE GEOGRAPHY. WE'RE NOW PULLING THAT OUT AND FOCUSING ON THE INCLUSIVE GROWTH AREA. THIS GEOGRAPHY IS MADE UP OF THREE ELEMENTS, ZIP CODE, TABULATION AREAS WITH 28% OR GREATER POVERTY, UM, OPPORTUNITY ZONES AND REGIONAL CENTERS. SO WHEN YOU TAKE THOSE THREE MAPS AND YOU PUT 'EM TOGETHER, THAT IS NOW THE I G A, THE INCLUSIVE GROWTH AREA. WITHIN THE ZIP CODE TABULATION AREAS, WE'VE ALSO IDENTIFIED TWO ADDITIONAL TIERS. TIER TWO IN TIER THREE, WHICH REPRESENT ZIP CODES WITH 30% OR GREATER, AND 40% OR GREATER OF THEIR POPULATION BELOW THE FEDERAL POVERTY LINE. SO THE REASON WE DID THAT IS BECAUSE WE WANT A GEOGRAPHY THAT ONE FOCUSES THE CONVERSATION AROUND POVERTY, BUT THEN FOCUSES US ON NOT ONLY PROJECTS, BUT WHERE ARE THE PEOPLE THAT WE WANT TO PERFORM AND REALLY LOOK AT, UH, OUTREACH FOR JOB TRAINING, JOB OPPORTUNITIES, RIGHT? SO, SO THIS MAP DOES BOTH OF THOSE THINGS FOR US AND HELPS US KIND OF SET SOME PRIORITY THERE. AND SOME FOCUS WE WANT TO DISAGGREGATE AND, AND OPEN UP THE CONVERSATION ABOUT HOW WELL SAN ANTONIO'S DOING BY DISAGGREGATING BY GEOGRAPHY, SO WE COULD HAVE A CONVERSATION ABOUT WHAT'S GOING ON IN SPECIFIC GEOGRAPHIES. UM, SO THAT'S THE INTENT BEHIND THE MAP. NOW, WE DID HAVE CONVERSATIONS ABOUT, YOU KNOW, CENSUS TRACKS VERSUS ZIP CODES, ET CETERA. AND WITH THE UPCOMING DECENNIAL CENSUS, WE'LL EVALUATE THIS AGAIN TO SEE IF IT MAKES SENSE TO MAYBE MOVE TO CENSUS TRACK. IF WE GET FANTASTIC POINT LEVEL DATA FROM THE DECENNIAL CENSUS, THAT BETTER INFORMS WHERE WE SHOULD FOCUS. MAYBE WE'LL MOVE THAT DIRECTION FOR NOW. THE ZIP CODES MADE SENSE, BECAUSE IF WE'RE PERFORMING OUTREACH AT A, AT A LOCAL LEVEL, AT A NEIGHBORHOOD LEVEL, PEOPLE MAY KNOW WHERE THEIR ZIP CODE IS. NOT A [00:20:01] LOT OF FOLKS KNOW WHERE THEIR CENSUS TRACK IS. SO WE FELT THAT IT WOULD KIND OF RESONATE FROM A MONITORING PERSPECTIVE. IF I'M AN EMPLOYER AND I WANNA CHECK VERY QUICKLY, IF I'VE GOT QUALIFYING EMPLOYEES, THIS HELPS WITH THAT AS WELL. SO THAT'S THE FIRST NET NEW CHANGE THE GEOGRAPHY. SO AS WE GO INTO THE PROJECT TYPES, I JUST WANNA VERY QUICKLY GIVE YOU A SUMMARY HERE. ON SLIDE SEVEN, WE'LL BE COVERING INDUSTRY PROJECTS. THESE ARE THE TRADITIONAL PROJECTS THAT RENEE BRINGS FORWARD TO EXECUTIVE COMMITTEE, UM, AND THAT YOU ALL, UH, CONSIDER ON A REGULAR BASIS. AND AGAIN, WE ONLY APPROVE TWO TO THREE OF THESE TAX ABATEMENTS A YEAR. WITHIN INDUSTRY PROJECTS. THERE IS EXCEPTIONAL PROJECTS AND ESSENTIALLY, UH, THESE ARE PROJECTS THAT ARE INVESTING UPWARDS OF $60 MILLION, HAVE MORE THAN 600 JOBS ASSOCIATED WITH THEM. UH, AND ESSENTIALLY SIGNIFICANT, UH, OR EXCEPTIONAL PROJECTS ARE PROJECTS THAT WE'RE, WE'RE WILLING TO MAYBE NEGOTIATE ON THE LENGTH OF THE TAX ABATEMENT OR OTHER THINGS. WE JUST HAVE MORE NEGOTIATING, UH, FLEXIBILITY THERE. ADDITIONALLY, UM, A NET NEW CHANGE IS THAT WE WANNA FOCUS ON PROVIDING THAT EXCEPTIONAL PROJECTS CATEGORY TO PROJECTS WHO AGREE TO HIRE FROM, UH, TIERS TWO AND THREE OF THE INCLUSIVE GROWTH AREA. SO IF SOMEBODY APPROACHES US AND SAYS, I'M WILLING TO FOCUS ON THOSE AREAS FOR HIRING, UH, WE'D CONSIDER THAT EXCEPTIONAL BECAUSE THAT IS EXCEPTIONAL. THAT'S, THAT'S A CHALLENGE FOR AN EMPLOYER. THAT'S, THAT'S NOT A, UH, A SMALL ASK. AND SO WE WANTED TO CONSIDER THAT AS POTENTIALLY EXCEPTIONAL. ADDITIONALLY, UM, IF THERE ARE HEADQUARTERS, UH, WE'D LIKE TO PURSUE, UM, THEM AS AN EXCEPTIONAL PROJECT, BOTH BECAUSE HEADQUARTERS, NATIONALLY WOULD BE A VERY STRONG ECONOMIC DEVELOPMENT WIN. BUT ALSO FOR LOCAL SMALL BUSINESSES, IF THEIR CEOS ARE HERE, IF THEY'RE GROWING HERE, WE'D WANNA HAVE A CONVERSATION WITH THEM, UH, ABOUT THE TAX ABATEMENT. SO INDUSTRY PROJECTS, AND THE NET NEW PROJECT THAT WE ARE SUGGESTING, OUR PROJECT TYPE CALLED AN UPSCALE PROJECT, WHICH IS FOCUSED ON WORKFORCE DEVELOPMENT. SO LET'S JUMP INTO INDUSTRY PROJECTS AND THE ELIGIBILITY CHANGES ON THIS SLIDE, WHAT YOU'LL SEE IS ON THE LEFT, THE WAY THE POLICY'S CURRENTLY, UH, FRAMED AND WHAT WE'RE RECOMMENDING ON THE RIGHT. SO, UM, THE FIRST ELIGIBILITY REQUIREMENT, UH, IS $10 MILLION OR 50 NEW JOBS. PREVIOUSLY WE HAD THE, UH, MINIMUM INVESTMENT DOWN AT A MILLION DOLLARS INSIDE THE ICRP. AND THAT WAS REALLY KIND OF A TEST BALLOON TO SEE IF THERE WERE TAKERS AT THAT LEVEL OF INVESTMENT. AND REALLY THERE WEREN'T, AND THAT MAKES A LOT OF SENSE FROM THE PERSPECTIVE OF, MY ONLY SAVINGS IS $5,600 IF I INVEST A MILLION DOLLARS AND THE CITY'S GONNA MONITOR ME TWICE A YEAR AND BE IN MY BUSINESS FOR 10 YEARS OR 16 YEARS. UM, SO WE'RE SAYING $10 MILLION, 15 NEW JOBS. THE LIVING WAGE IN THE ALL INDUSTRY WAGE REMAIN THE SAME. THE PRACTICES REMAIN THE SAME. ESSENTIALLY WE'RE SAYING ALL JOBS HAVE TO MEET THE LIVING WAGE, UH, WHICH IS 1207. THAT OF COURSE, IS THE POVERTY LAND FOR A FAMILY OF FOUR IS DETERMINED BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES. UM, AND THEY MUST MEET, 70% OF ALL OF THEIR EMPLOYEES MUST GET AN ALL INDUSTRY WAGE OF 1665. AND SO THAT REPRESENTS THE AVERAGE OF ALL THE WAGES HERE IN SAN ANTONIO. SO THE PHILOSOPHY IS, IF YOU'RE BRINGING JOBS IN, WE WANNA BE PULLING THAT AVERAGE UP. NOW, WE'VE HAD A LOT OF GREAT CONVERSATIONS ABOUT THESE WAGES, UH, IN PUBLIC MEETINGS THAT WE'VE HAD, AND WE'VE ALWAYS, YOU KNOW, WHAT WE TRY TO DO IS MAKE CLEAR TO EVERYBODY THAT THESE ARE NOT ASPIRATION ASPIRATIONAL WAGES FOR SAN ANTONIO. WE'RE NOT SAYING THIS IS WHAT WE WANT. THESE ARE THE FLOORS. WHAT WE ARE SAYING IS, IF A PROJECT IS CONS, CONSIDERING SAN ANTONIO, THESE ARE THE FLOORS. YOU CANNOT PAY ANY LESS THAN 1207. WE'RE GIVING YOU A 30% MARGIN. AND FROM THAT POINT, 70% OF YOUR EMPLOYEES HAVE TO MAKE 1665. SO WHAT WE'RE REALLY DOING IS SAYING, WHEN A PROJECT LOOKS AT SAN ANTONIO, AND IF IT'S CREATING A THOUSAND JOBS, IT WILL POTENTIALLY HAVE LOWER SKILLED, SEMI-SKILLED EMPLOYEES THAT MAYBE DON'T MAKE THE $16 AN HOUR. THAT'S OKAY. IF YOU'RE CREATING A THOUSAND JOBS, YOU'RE GONNA HAVE SOME OF THOSE. SO WE'RE CREATING A LITTLE BIT OF SPACE FOR THEM TO CONSIDER SAN ANTONIO. WE WANNA GET AS MANY LOOKS AS WE CAN, AS MANY GOOD PROJECTS AS WE POSSIBLY CAN. 'CAUSE WHAT WE REALLY WANT IS THOSE $50,000 A YEAR AND THE $70,000 A YEAR JOBS, WHICH WE HAVE SEPARATE TOOLS FOR, RIGHT? THE ECONOMIC DEVELOPMENT INCENTIVE FUND FOCUSES ON THE HIGH WAGE JOBS. SO THESE ARE THE MINIMUM GUIDELINES, NOT TOO MANY CHANGES HERE. UM, NEXT WOULD BE THE, UH, ACTUAL TERM AND PERCENTAGE EVERY TAX ABATEMENT'S MADE UP OF TERM. HOW LONG WE'LL GIVE THE ABATEMENT AND PERCENTAGE, HOW MUCH OF THE DOLLAR ARE WE GIVING BACK TO THE BUSINESS IN TERMS OF TERM, UH, WE'RE OFFERING 10 YEARS INSIDE THE I G A AND SIX YEARS OUTSIDE, UNLESS OF COURSE, THEY'RE AN EXCEPTIONAL PROJECT. AND AS FAR AS PERCENTAGE GOES, UM, IN THE PREVIOUS POLICY OR THE EXISTING POLICY, UH, WE INDICATE 50 OR A HUNDRED PERCENT UP TO 50 OR A HUNDRED PERCENT. AND WE SORT OF LIST ALL THESE VARIABLES. UM, BUT FROM A BUSINESS PERSPECTIVE, THEY'RE NOT QUITE SURE HOW THEY GET FROM HERE TO THERE. AND IT'S REALLY BASED ON STAFF RECOMMENDATION TO COUNCIL. UH, SO WE TRIED TO CREATE SOME CLARITY FOR THE BUSINESS COMMUNITY TO SAY, WELL, WE'LL SHOW YOU EXACTLY HOW TO GET 50, HOW TO GET A HUNDRED. AND IT'S BASED ON PRIORITIES. AS RENEE POINTED OUT, THE POLICY ITSELF REALLY ACTS AS A WAY FOR COUNCIL TO COMMUNICATE WHAT THEY'RE WILLING TO ABATE [00:25:01] TAXES FOR. AND SO, UM, IF THEY MEET TWO OF THE PRIORITIES, 50% BEATING THREE GETS THEM A HUNDRED PERCENT. THE FIRST THREE THAT I'LL GO THROUGH HERE ARE YOUR TRADITIONAL PROJECTS THAT WE'VE BEEN BRINGING FORWARD, TARGETED INDUSTRY, BIO IT, AEROSPACE, ADVANCED MANUFACTURING, NEW ENERGY. CHECK THE BOX THERE. UM, HIGH WAGES ARE 30% OR MORE OF YOUR EMPLOYEES MAKING MORE THAN $50,000 A YEAR. UH, AND FINALLY, NUMBER THREE, PAID INTERNSHIPS. SO WHAT WE'D BE ASKING IS THAT THE, UM, EMPLOYER RECEIVING THE ABATEMENT TAKE 5% OF THEIR ABATEMENT VALUE AND PUT THAT INTO PAID INTERNSHIPS, RIGHT? HELPING THEM TRAIN THEIR WORKFORCE PIPELINE, BUT ALSO PROVIDING, UH, LOCAL COLLEGES AND HIGH SCHOOLS THE OPPORTUNITY TO HAVE THESE KIDS GET A SENSE OF WHAT IT'S LIKE TO WORK IN THAT COMPANY, POTENTIALLY STAYING IN SAN ANTONIO SO THAT WE DON'T SEE THEM LEAVE BECAUSE THEY THINK THAT MAYBE THERE'S NOT ENOUGH JOBS IN SAN ANTONIO. UH, SO THAT'S ONE, TWO, AND THREE. RENEE'S BEEN PRESENTING TRADITIONAL PACKAGES LIKE THIS AT EXECUTIVE SESSION. WE'VE BEEN PACKAGING THESE UP, UH, PRETTY CONSISTENTLY. UM, SO THAT IS KIND OF WHAT WE'VE BEEN DOING. THE NEXT TWO ELEMENTS ARE REALLY KIND OF THE INCLUSIVE GROWTH PART OF THIS. UH, NUMBER FOUR IS INCLUSIVE HIRING FROM THE I G A. SO IF A COMPANY'S WILLING TO HIRE FROM THE ENTIRE INCLUSIVE GROWTH AREA, UM, THAT THAT YELLOW MAP, UM, THEN WE WOULD CONSIDER THAT, UH, UH, FOR 35% OF THEIR WORKFORCE, WE'D CONSIDER THAT MEETING ONE OF THOSE PRIORITIES. AND FINALLY, IF A COMPANY, UM, MAYBE MET TWO OF THESE AND NEEDED A THIRD OPTION, NEEDED A WAY TO, TO PARTNER, TO COMPETE, UH, TO GET THAT A HUNDRED PERCENT, WHAT WE ARE PROVIDING IS A, UH, FEW OPTIONS ON PARTNERSHIP OPTIONS. WHAT WE'RE ASKING IS THAT THE COMPANY LOOK AT 15% OF THEIR ABATEMENT VALUE AND COMMIT TO SPENDING THAT AMOUNT OF MONEY OVER FIVE YEARS ON TWO OF FOUR OPTIONS OF THESE FOUR OPTIONS. SO THE COMPANY COULD PICK TWO OF THESE FOUR AND SPEND THAT AMOUNT OF MONEY IN FIVE YEARS. AND THAT WOULD BE THE PARTNERSHIP OPTIONS. THESE REPRESENT ELEMENTS IN AREAS THAT ARE OBVIOUSLY CONNECTED TO SA TOMORROW. THESE ARE THE OUTER BOUNDS OF WHAT WE'D LIKE TO NEGOTIATE WITH COMPANIES AS THEY COME FORTH, UH, AND REALLY COMMUNICATE TO THE COMPANY THAT THESE ARE THE ELEMENTS THAT MATTER TO COUNCIL. SO OBVIOUSLY, THE FIRST ONE, SMALL MINORITY WOMEN, VETERAN BUSINESS ENTERPRISE UTILIZATION. SO IF A COMPANY WAS DOING A BRAND NEW GREENFIELD DEVELOPMENT AND THEY HAD 20% OF THEIR SPEND GO TO CERTIFIED SMALL BUSINESSES, WE WOULD COUNT THAT AS PART OF THAT 15% SPEND, UM, AS WELL AS THEIR OPPORTUNITY SPEND. SO EVERY YEAR THEY'RE SPENDING MONEY ON OPERATIONS. IF THEY DO THAT WITH CERTIFIED SMALL BUSINESSES, AND, AND OBVIOUSLY WE HAVE A GREAT SPATA TEAM, WE COULD PROVIDE THEM, UH, UH, GREAT SMALL BUSINESSES TO DO BUSINESS WITH, UM, UH, THEY WOULD GET CREDIT FOR THAT. NUMBER TWO, THE SUSTAINABILITY ELEMENT IS REALLY YOUR WATER POWER CONSERVATION AS WELL AS YOUR GOOD DEVELOPMENT, YOUR LEAD LID KIND OF DEVELOPMENT PROCESSES. IF THEY'RE SPENDING DOLLARS ON THAT, WE WANNA MAKE SURE THAT WE'RE ZEROING IN ON THAT AS A PARTNERSHIP OPPORTUNITY. HEALTH AND WELLNESS, IF THEY'RE PURSUING, UM, BLOOD DRIVES OR ANNUAL FLU VACCINATIONS AND REALLY ACCESS TO AN EMPLOYEE, UM, ASSISTANCE PROGRAM, SOMETHING THAT FOCUSES ON THE, THE HEALTH OF THE EMPLOYEE, UH, THAT COULD BE CREDITED TO THEM AS WELL, UH, IN THIS PARTNERSHIP STRUCTURE. AND FINALLY, COMMUTER BENEFITS, KEEPING CARS OFF THE ROAD, FOCUSING ON AIR QUALITY. IF THEY FOCUS ON PROVIDING VIA BUS PASSES OR, UH, DO SOME SORT OF TELEWORK OR COMPRESSED WORK WEEK, UM, WE WOULD ALSO GIVE THEM CREDIT FOR THAT. SO IT REALLY PROVIDES THEM A SERIES OF OPTIONS FOR US TO PARTNER ON IF THEY'RE LOOKING TO, TO GAIN THAT ADDITIONAL, UH, PRIORITY SCORE. SO THAT CONCLUDES THE TARGETED INDUSTRY PORTION OF THIS. AND, UH, I'LL LET RENEE TALK A LITTLE BIT ABOUT SOME OF OUR GUIDING PRINCIPLES AS WE JUMP INTO UPSKILL PROJECTS. LET ME JUST TEE UP THIS NEXT SESSION SECTION. WHAT WE REALLY WANTED TO DO IS, UM, DO SOME INNOVATING, SOME CREATIVITY. WE IN OUR DEPARTMENT, CLEARLY UNDERSTAND THE VALUE OF UPSKILLING AND WORKFORCE DEVELOPMENT. WE HAVE A WHOLE DIVISION NOW, UH, DEDICATED TO THAT REALLY LEVERAGING, UM, THE RESOURCES THAT YOU'VE GIVEN US. THAT'S ONE OF THE GUIDING PRINCIPLES. SO WE ARE VERY FOCUSED ON CREATING A PROJECT THAT DID THAT. CAN WE POINT THE INVESTMENTS THAT WE ALREADY HAVE IN WORKFORCE ALL IN THAT SAME DIRECTION AND CONNECT THEM TO PROJECTS. SECONDLY, UM, UH, LIKE IT SAID HERE, TRAINING AND EDUCATION. I THINK EVERYONE WOULD AGREE THAT IN TERMS OF ECONOMIC MOBILITY, THE WAY TO PROVIDE THAT IS ADDITIONAL SKILLS, SKILLS LEAD TO HIGHER EARNINGS AND DRIVING THE MEDIAN INCOME UP. SO, UH, THOSE ARE TWO OF THE GUIDING PRINCIPLES THAT REALLY MOTIVATED US TO DEVELOP SOMETHING VERY NET NEW. WHAT I REALLY LOVE ABOUT IT IS, THIS IS A NEW TYPE OF PROJECT, BUT THE ACTUAL WORKFORCE FRAMING THAT WE'RE GONNA SHARE WITH YOU, HOW WE'VE CREATED MILESTONES AND ASKED OUR DELEGATE AGENCIES TO HAND OFF PARTICIPANTS. AND THE INFORMATION SYSTEM THAT WE CREATED TO HOUSE THE PARTICIPANTS IS SOMETHING THAT WE ARE WORKING [00:30:01] ON BECAUSE COUNCIL, OVER THE LAST COUPLE OF YEARS HAS ASKED FOR HOW ARE WE MEASURING OUR RETURN ON OUR INVESTMENT IN TERMS OF OUR WORKFORCE DELEGATE AGENCIES. SO THIS FRAMEWORK WAS BEING PUT IN PLACE WHILE AT THE SAME TIME WE TRIED TO DEVELOP OUT THIS NEW PROJECT. SO WE'VE BROUGHT THOSE TWO ELEMENTS TOGETHER. SO ADRIAN, WHY DON'T YOU SHARE, UH, THAT NEW PROJECT. AND THEN AFTERWARDS, WE'RE, UH, GONNA HAND OFF TO JENNA, UH, JENNA'S GONNA PROVIDE SOME PERSPECTIVE IN TERMS OF SITE SELECTOR, AND THEN WE'LL TAKE QUESTIONS. THANKS, RENEE. SO, AS RENEE MENTIONED, UM, WHEN WE LOOKED AT THE CONSOLIDATED FUNDING DOLLARS AT COUNCIL, ALL LOTS TO OUR DEPARTMENT FOR FOCUSING ON WORKFORCE DEVELOPMENT FOR SOME OF THE MOST DISTRESSED FOLKS IN OUR COMMUNITY OVER THE LAST FEW YEARS, WE STARTED TALKING ABOUT AND TRYING TO FIGURE OUT HOW WE COULD PUT TOGETHER A SUITE OF SERVICES REALLY FOCUSED ON A PATHWAY SO THAT WE COULD IN EARNEST, AS WE CONTRACT FOR THESE SERVICES WITH THESE NONPROFITS, SAY THAT WE WILL MEET OUR RESIDENTS AT THE VERY BEGINNING, WHEREVER THEIR BARRIER IS STARTING AT LITERACY, AND HAVE A WAY FOR THEM TO MOVE THROUGH MILESTONES TO A TARGET INDUSTRY JOB, A SELF-SUSTAINING JOB. AND SO OVER THE LAST FEW YEARS, UM, WE'VE SUCCESSFULLY PUT TOGETHER A SUITE OF NONPROFITS AND WORK WITH 'EM, UH, TO AGREE THAT, UM, YOU KNOW, LITERACY IS FANTASTIC, TEACH SOMEBODY WEEDS FANTASTIC. BUT WHAT WE REALLY WANT IS A HANDOFF. WE REALLY WANT SOME SUPPORT AND SOME, SOME COHESION AROUND HELPING PEOPLE TAKE THAT NEXT STEP TO GET TO A G E D AND THEN MAYBE SOME WORK EXPERIENCE AND THEN POTENTIALLY A TARGET INDUSTRY CERTIFICATION. THESE ARE NOT SHORT TERM GOALS, THIS IS NOT A SHORT TERM RIDE IN TERMS OF, UH, WORKFORCE DEVELOPMENT. AND SO WE WANTED SOME COHESION ACROSS THESE NONPROFITS. SO WE COLLECTIVELY REFER TO THIS GROUP AS THE UPSKILL PARTNERS NETWORK. UM, AND SO, UH, EACH OF THESE FOLKS, UH, TO RENEE'S POINT, HAS THEIR OWN METRICS, BUT WE'RE ALSO GAUGING WHETHER OR NOT THEY'RE ABLE TO HAND OFF. AND THAT'S REALLY WHAT WE'RE TRYING TO DO, IS TRY TO FIGURE OUT IF WE CAN HAVE FOLKS, UH, MOVE THROUGH THIS PIPELINE. WHAT WE'VE DONE OVER THE LAST YEAR, AS RENEE POINTED OUT, IS REALLY WORKED WITH THEM TO, UH, ADOPT AN INFORMATION SYSTEM THAT WOULD ALLOW THEM TO UPLOAD THE 4,000 FOLKS THAT THEY WORK WITH NOW INTO AN INFORMATION SYSTEM. AN INFORMATION SYSTEM THAT WILL ALLOW US TO HAVE AN EMPLOYER POST JOBS AND, AND, AND FIND JOB MATCHING WITH THIS POPULATION THAT WE'RE WORKING WITH. ADDITIONALLY, THE INFORMATION SYSTEM THAT WE'RE PILOTING WOULD HELP US IDENTIFY, UH, HOW FOLKS ARE MOVING THROUGH THE MILESTONES SO THAT FOR THE 4,000 THAT WE'RE INVESTING IN, WE CAN IN REAL TIME UNDERSTAND WHERE ARE THE BARRIERS IF EVERYBODY'S GETTING TO A G E D AND STOPPING, WHY IS THAT RIGHT? WE CAN HAVE REAL TIME INTERVENTIONS BASED ON THE POPULATION THAT WE'RE WORKING WITH. THE ONE-TO-ONE RELATIONSHIP BECOMES INCREDIBLY IMPORTANT IN TERMS OF UNDERSTANDING WHAT BARRIERS ARE BEING, UH, DEALT WITH. UM, ADDITIONALLY, THE SYSTEM PROVIDES A WAY FOR THE ACTUAL RESIDENT, THE USER TO BENEFIT, UM, BY BEING ABLE TO LOG IN. SO SAY I GET MY G E D AND I DECIDE TO GO LIVE LIFE FOR TWO YEARS AND THEN COME BACK TO THIS KIND OF PATH OF SELF-IMPROVEMENT, I'D BE ABLE TO GO TO A PUBLIC LIBRARY LOG ON, AND IT WOULD SHOW ME POTENTIAL JOB MATCHES THAT MATCH MY SKILLS, AND THAT NEXT NONPROFIT, WHAT IS MY NEXT STEP ON MY MILESTONE? AND WHO CAN HELP ME? WHO'S GONNA HELP ME WITH THAT UPSKILLING AND THOSE WRAPAROUND SERVICES? UM, SO THIS IS A PILOT THAT WE ARE, UM, WORKING WITH NOW. UH, AND SO ALL OF THIS INFRASTRUCTURE OF THE UP UPSKILLS PARTNER NETWORK IS WHAT WE'VE PUT TOGETHER TO ALIGN THE CURRENT INVESTMENT TO REALLY BOLT ONTO THIS NEXT NEW TYPE OF TAX ABATEMENT PROJECT. THIS NEW TYPE OF TAX ABATEMENT PROJECT IS CALLED AN UPSKILL PROJECT. WE'RE SUGGESTING DOING A MAXIMUM OF TWO OF THESE A YEAR. WHAT THIS WOULD CONSIST OF IS A EMPLOYER WHO IS PAYING AT LEAST THE LIVING WAGE, UH, NOT NECESSARILY ALL INDUSTRY WAGE, BUT AT LEAST THE LIVING WAGE INVESTING UPWARDS OF $20 MILLION UPSKILLING OR CREATING 300 NEW JOBS, AND MOST IMPORTANTLY, IS WILLING TO INTERVIEW AND HIRE FROM OUR TARGETED POPULATIONS. AND WHEN WE SAY TARGETED POPULATIONS, WHAT WE MEAN IS TIER TWO AND THREE OF THE I G A RESIDENTS THAT ARE CURRENTLY IN OUR DELEGATE AGENCIES, AND THEREFORE IN THE U P N INFORMATION SYSTEM AND, UH, WORKFORCE OPPORTUNITY TAX CREDIT ELIGIBLE INDIVIDUALS THAT INCLUDES VETERANS, THAT INCLUDES THE, THE FORMERLY INCARCERATED THAT INCLUDES FOLKS WHO'VE BEEN UNEMPLOYED FOR MORE THAN 90 DAYS. WE DID THIS IN KEEPING WITH KIND OF HOW THE STATE OF TEXAS LOOKS AT, UH, THEIR ENTERPRISE ZONE PROGRAM IN TERMS OF THE POPULATIONS ARE FOCUSED ON. AND SO IF WE HAVE AN EMPLOYER WHO'S WILLING TO KIND OF CHECK ALL THOSE BOXES, IT MAKES SENSE FOR THEM. UH, WE WOULD PROVIDE A 10 OR SIX YEAR TAX ABATEMENT. AND THE WAY THIS WORKS IS THEY'D GET A HUNDRED PERCENT TAX ABATEMENT IF THEY COULD MAINTAIN 35% OF THEIR WORKFORCE FROM THE TARGETED POPULATIONS. IF THEY COULD NOT, THAT'S FINE. WE WOULD ASK THEM TO CUT A CHECK FOR HALF THE VALUE OF THE ABATEMENT INTO A WORKFORCE FUND. THE WORKFORCE FUND WOULD BE ABLE TO BE USED FOR TWO THINGS SPECIFICALLY. ONE, IF THAT EMPLOYER HAS AN INTERNAL TRAINING PROGRAM, LET'S SAY IT'S A OSHA CERTIFICATION AND A FORKLIFT OPERATING CERTIFICATION, AND WITH THAT PROGRAM, THEY CAN RAISE THE WAGE OF THAT EMPLOYEE, THEY CAN USE THE DOLLARS FOR THAT. SOME EMPLOYERS HAVE A VERY FLAT ORGANIZATION. THEY DON'T HAVE A LOT OF UPWARD MOBILITY. THEY NEED 300 PEOPLE TO PUT BOXES TOGETHER AND, AND FILL THEM AND SHIP THEM OFF. THAT'S OKAY TOO. WHAT WE WOULD ASK IS THAT THEY WOULD ALLOW THE UPSKILL PARTNER NETWORK ON SITE [00:35:01] TO ASSESS AND ENROLL THEIR WORKFORCE, AND THAT, THAT THOSE DOLLARS WOULD BE USED AS ESSENTIALLY SCHOLARSHIP. IF SOMEBODY, ONE OF THEIR EMPLOYEES WANTED TO GET THEIR G E D, UH, IT WOULD BE PAID FOR OUT OF THAT FUND. THE PREPARATION AND THE TESTS COST MONEY, RIGHT? THOSE ARE SOME OF THE BARRIERS THAT THESE FOLKS WERE FACING. UM, AND SO IT WOULD BE USED FOR THAT. SO FROM THE EMPLOYER'S PERSPECTIVE, IF I HAVE MAYBE A, A, AN OPERATION WHERE TURNOVER IS AN ISSUE, BECAUSE I'M, I'M NOT PAYING, YOU KNOW, A LOT OF WAGES, UH, THIS ACTS AS A EMPLOYEE RETENTION PROGRAM POTENTIALLY, RIGHT? SO WE NOW HAVE A SITUATION WHERE THAT EMPLOYER'S INVESTING IN THEIR EMPLOYEE'S, UH, FUTURE. AND SO THE INTENT HERE IS TO TAKE OUR INVESTMENT IN NONPROFITS AND TRY TO LOOK AT THIS, THIS KIND OF CADRE OF EMPLOYERS THAT IN YEARS PAST OUR POLICIES REALLY HAD NO SPACE FOR. SO IN YEARS PAST, IF A PROJECT CAME AND IT WASN'T PAYING THE ALL INDUSTRY WAGE, HONESTLY, I DON'T EVEN KNOW IF WE'D GET A CHANCE TO MEET WITH THEM, UH, BECAUSE THAT WAS A HARD AND FAST ROLE WHERE WE'RE PURSUING ONLY HIGH WAGE JOBS, BUT THOSE EMPLOYERS ARE PROVIDING JOBS THAT FOLKS IN DISTRESSED COMMUNITIES CAN ACCESS NOW AND NEED. BUT WHAT MAKES IT A, A JOB THAT WE WOULD, WILL BE WILLING TO INVEST, IS THAT THERE IS AN OPPORTUNITY FOR UPSKILLING, RIGHT? THEY HAVE SOME SPACE. SO THEY'RE GETTING POTENTIALLY A JOB OPPORTUNITY, SOME UPSKILLING OPPORTUNITY AND SOME WRAPAROUND SERVICES. AND THAT'S REALLY THE MODEL THAT WE WANNA FOCUS ON, TRYING TO FOCUS ON THE TARGETED POPULATIONS AND PROVIDING THOSE THREE THINGS AS CONSISTENTLY AS POSSIBLE AND TRYING TO MEET RESIDENTS WHERE THEY'RE AT AND MOVING THEM THROUGH THOSE MILESTONES OVER THE LONG TERM, RIGHT? EVEN THOUGH WE CONTRACT FOR X AMOUNT OF FOLKS PER YEAR, WORKFORCE DEVELOPMENT'S A LONG TERM GAME. IT TAKES FOLKS FOUR YEARS, FIVE YEARS, SIX YEARS TO REALLY MOVE UP THOSE MILESTONES. SO AS LONG AS WE'RE COMMITTED TO, YOU KNOW, THE, THE LONG GAME AND, AND HAVING PROGRESSION BE ONE OF THOSE METRICS THAT WE SEEK, UH, WE THINK THIS IS A GOOD KIND OF OPTION. SO THAT'S THE INTENT BEHIND UPSKILL. UH, AGAIN, WE'RE ONLY DOING TWO OF THESE A YEAR. AND AGAIN, THE INTENT HERE IS NOT TO DRAW IN THIS TYPE OF JOB. THAT'S NOT WHAT WE'RE PURSUING. WHAT WE WANT IS ACCESS TO THOSE FOLKS WHO ARE WORKING 40 HOURS A WEEK, BUT NEED SPACE TO UPSKILL. WE WANT ACCESS TO THOSE PEOPLE, NOT NECESSARILY MORE OF THOSE JOBS. UH, SO THIS WOULD WORK WITH, UH, AN EXISTING EMPLOYER. WE'LL GO DO RETENTION VISITS. IF SOMEBODY'S INVESTING MONEY, WE'D LOVE TO DO ONE OF THOSE PROJECTS. UM, AND SO THIS NET NEW, UH, TYPE OF PROJECT IS WHAT, UM, A LOT OF THE CONVERSATIONS WITH, UH, NATIONAL SITE SELECTORS AND LOCAL SITE SELECTORS HAS BEEN ABOUT. AND SO TO CLOSE HERE, WHAT WE'RE GONNA DO IS TALK A LITTLE BIT ABOUT SOME OF THE INITIAL FINDINGS, UM, THAT OUR CONSULTANTS KIND OF CAME UP WITH IN CONVERSATIONS WITH NATIONAL SITE SELECTORS BASED ON SOME OF THESE RECOMMENDATIONS. AND FOR THAT, I'LL BRING JENNA TO SPEAK ON THAT TOPIC. THANK YOU. GREAT JOB, MR. MAYOR, UH, MEMBERS OF CITY COUNCIL. AND RENEE, THANK YOU SO MUCH FOR ALLOWING ME THE OPPORTUNITY TO SUPPORT THIS PRESENTATION. AS YOU CAN TELL, THE CITY STAFF, THE ECONOMIC DEVELOPMENT DEPARTMENT HAS DONE TREMENDOUS WORK OVER THE LAST, ALMOST YEAR OR SO, UM, TO RESEARCH AND BRING FORWARD TO YOU THIS, UM, NEW TAX ABATEMENT, UH, GUIDELINE, UH, THAT I BELIEVE IS GOING TO BE VERY HELPFUL FOR THOSE ORGANIZATIONS THAT WE'RE LOOKING TO RECRUIT AND OF COURSE, RETAIN IN OUR COMMUNITY AND OUR ORGANIZATIONS. WE PARTNER VERY CLOSELY ON EVERYTHING THAT WE DO, BUT SPECIFICALLY WITH THIS EFFORT, WE ARE PARTNERED FROM THE BEGINNING, UH, WAY BACK TO SERVING ON THE PANEL TO SELECT OUR CONSULTANTS TO TODAY, SUPPORTING THE PRESENTATION AND HOPEFULLY INTO THE FUTURE, HELPING TO ACTUALLY DEVELOP THE PACKAGES, UH, FOR THE CORPORATIONS THAT WE'RE WORKING WITH. BUT THE KEY, UM, PORTION OF OUR ENGAGEMENT, AND REALLY THE FEEDBACK TODAY WAS THE PERSPECTIVE OF OUR CUSTOMER. UH, BECAUSE AS RENEE AND TEAM, AS THEY WERE PROGRESSING THROUGH THIS PROCESS, THEY WANTED TO MAKE SURE THAT THEY WEREN'T PERFORMING THIS WORK IN A VACUUM. THEY WANTED TO KNOW WHAT THE SITE SELECTORS, THE FOLKS THAT ARE INFORMING THE DECISIONS THAT THESE C-SUITE, UM, EXECUTIVES ARE MAKING. AND THE, THE COMPANIES THAT WE DEAL WITH REGULARLY, WHAT THEY THOUGHT ABOUT THESE NEW GUIDELINES. THE FEEDBACK IS BEHIND ME. UH, IT'S RELATIVELY SIMPLE FROM A PROCESS PERSPECTIVE, THERE WERE THREE KEY THEMES THAT, UH, CAME UP. SO ONE WAS OPTIONALITY. WE WANT ADDITIONAL WAYS THAT WE CAN ENGAGE AND QUALIFY FOR INCENTIVES. UH, THE SECOND WAS OBJECTIVITY. WE WANT THERE TO BE GUIDELINES ON THE FRONT END, BLACK AND WHITE GUIDELINES ON THE FRONT END, UM, THAT THE STAFF CAN HAVE SO THAT WE CAN INFORM OUR MODELING. THE SITE SELECTORS CAN INFORM THEIR MODELING, AND IT'S LESS DISCRETIONARY ON THE BACK END, RIGHT? BECAUSE THAT CAUSES CONFUSION. AND IT ALSO, UH, EXTENDS THE PROCESS TIMELINE. AND WE KNOW TIME IS OF THE ESSENCE FOR EVERY DEAL THAT WE WORK. AND LAST BUT NOT LEAST, IT'S UP HERE IN BIG BOLD LETTERS. UM, BUT THE BIGGEST ADVICE THEY GAVE US WAS TO NOT OVERLAY ANY SORT OF ADDITIONAL ADMINISTRATIVE BURDEN. UM, AND THE, THE STAFF HAS WORKED, UM, TO NOT DO THAT IN THIS PROCESS. UM, IN ADDITION, UH, AND JUST IN CLOSING, I'LL SAY THAT, UM, AS WE WORKED WITH BOTH THE SITE SELECTORS, THE CONSULTANTS SURVEYED SITE SELECTORS ACROSS, UM, THE UNITED STATES, AND THEN WE ALSO SURVEYED SITE SELECTORS THAT WE WORKED WITH OVER THIS PAST YEAR, SOME THAT WORKED WITH COMPANIES WHO SELECTED SAN ANTONIO AND SOME WHO REPRESENTED COMPANIES THAT DIDN'T SELECT [00:40:01] SAN ANTONIO BECAUSE WE WANTED THAT CANDID FEEDBACK AND WAS VERY HELPFUL. UM, BUT THEIR FEEDBACK, UH, COMBINED WITH, UH, FEEDBACK FROM OUR PRIVATE INDUSTRY HERE LOCALLY AND FOLKS THAT WE WORK WITH, THE BIGGEST STRATEGIC POINT OF FEEDBACK WAS THAT AS WE FOCUS ON ECONOMIC MOBILITY AND WORKFORCE DEVELOPMENT AS A MEANS OF PROGRESSING THERE, THAT WE ARE STARTING IN THE RIGHT PLACE. UM, SO IF THERE'S ONE THING I LEAVE YOU WITH TODAY, IT'S THAT FEEDBACK THAT YOU'RE FOCUSED IN THE RIGHT AREAS, THAT THE E W D C DID A GREAT JOB ENGAGING AND CHALLENGING, UM, THIS A COUPLE OF WEEKS AGO WHEN WE PRESENTED THAT. UM, I'M HERE TO HELP SUPPORT ANY SORT OF QUESTIONS, BUT THE E D F, UH, AND OUR COLLECTIVE TEAM ARE SUPPORTIVE OF THE PROCESS AND THE RECOMMENDATIONS TODAY. THANK YOU. ALL RIGHT. WITH THAT MAYOR, UM, WE'RE HAPPY. OH, WE HAVE BEEN ENGAGED IN, UH, A LOT OF, UH, PUBLIC FEEDBACK. SO IT, STARTING IN MARCH, UH, WE'VE HAD AROUND 10 DIFFERENT MEETINGS SPECIFICALLY WITH THE DIFFERENT ORGANIZATIONS, UH, IN, IN TERMS OF TEAM SAN ANTONIO, THE ECONOMIC DEVELOPMENT ORGANIZATIONS, THE CHAMBERS, BROOKS PORT, UH, ALL THE CHAMBERS. UM, AND SO WE'VE MET WITH THEM AND, AND VETTED THIS, BUT WE'VE ALSO HAD, UH, PUBLIC HEARINGS THREE SO FAR. WE WE'RE HAVING SOME ADDITIONAL ONES, UH, AFTER THIS PRESENTATION. AND REALLY THOSE PRESENTATIONS, WE GOT SOME GREAT ADVICE FROM E W D C WHEN WE PRESENTED, AND THAT IS THERE'S A LOT OF MYSTERY AROUND TAX ABATEMENTS. SO IN ADDITION TO GOING OUT THERE AND SOLICITING THEIR FEEDBACK, TAKE THIS AS AN OPPORTUNITY TO PRESENT WHAT A TAX ABATEMENT IS. THIS IS A NET NEW INVESTMENT. WE'RE ONLY BAITING CITY TAXES. ALL THE OTHER TAXING ENTITIES AND JURISDICTIONS AREN'T TOUCHED. AND SO, UH, THESE PUBLIC HEARINGS HAVE REALLY GIVEN US A CHANCE TO KIND OF DEMYSTIFY WHAT A TAX ABATEMENT IS, PROVIDE INFORMATION ON THE RETURN ON INVESTMENT THAT WE'VE GOTTEN FROM TAX ABATEMENTS, AND THEN ALSO VET SOME OF THE, UM, RECOMMENDATIONS THAT WE'VE MADE. SO WITH THAT, UH, BOTH ADRIAN AND I AND TEAM ARE HAPPY TO ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE. MAYOR. GREAT. THANK YOU VERY MUCH FOR THE PRESENTATION. UH, RENEE AND ADRIAN AND JENNA, UM, I'LL ASK OUR CITY CLERK. THERE IS A STATEMENT, UM, THERE WAS BROUGHT FORTH BY COUNCILMAN VERAN IN HER ABSENCE. UH, IF YOU WANNA JUST PUT THAT INTO THE RECORD, MAYBE READ SOME OF IT. SURE. UH, IT STATES AS FOLLOWS. ON BEHALF OF, UM, COUNCILWOMAN VERAN, I'D LIKE TO READ A FEW COMMENTS THAT SHE WANTED TO SHARE WITH YOU. I'D LIKE TO EXPRESS MY SUPPORT FOR THE APPROACH AND RECOMMENDATIONS PUT FORTH BY THE ECONOMIC DEVELOPMENT DEPARTMENT TODAY AND LOOK FORWARD TO HEARING FROM MY COLLEAGUES FEEDBACK. IN MARCH. THE E W D C REQUESTED THAT OUR ECONOMIC DEVELOPMENT DEPARTMENT DEVELOP A POLICY FRAMEWORK TO EXPAND THE VARIOUS EXISTING ECONOMIC DEVELOPMENT STRATEGIES TO ENSURE THAT ALL AREAS OF OUR CITY HAVE EQUITABLE OPPORTUNITIES FOR ADVANCEMENT. AND I THINK MOST OF YOU HAVE THIS AT YOUR, UH, SEAT. SO I'M GONNA GO ON TO, UH, THE BOTTOM PORTION AT A TIME WHERE IT APPEARS THAT A ZIP CODE CAN DETERMINE THE DESTINY OF SOME OF OUR RESIDENTS. THE ECONOMIC AND WORKFORCE DEVELOPMENT COMMITTEE HAS MADE IT A POLICY TO PROMOTE EFFORTS RESULTING IN A MORE EQUITABLE. SAN ANTONIO E D D HAS TAKEN A GOOD INITIAL STEP BY LINKING RECOMMENDATIONS TO WHAT WORKS FOR THE BUSINESS COMMUNITY TO SERVE THE DUAL PURPOSES OF PURSUING A COMPETITIVE ECONOMY AND PROACTIVELY CONNECTING THE MOST DISTRESSED RESIDENTS IN OUR COMMUNITY TO JOB OPPORTUNITIES, TRAINING SERVICES, AND TO EFFECTIVELY MEET, MEET THEM WHERE THEY ARE FROM AN ECONOMIC DEVELOPMENT PERSPECTIVE. THAT IS WHAT THIS POLICY RECOMMENDATION REPRESENTS. THIS IS THE FIRST STEP IN THE 20 YEAR FOCUS OF THE ESSAY TOMORROW COMPREHENSIVE PLAN WITH THE EXPRESS PURPOSE OF WORKING WITH INDUSTRY TO REACH OUR COMMON GOALS. ON BEHALF OF MY COMMITTEE MEMBERS, I WELCOME YOUR FEEDBACK AND I THANK YOU FOR CONSIDERATION OF MY PERSPECTIVE IN MY ABSENCE. AND THAT'S FROM, UH, COUNCILWOMAN REBECCA ADA. THANK YOU, LETICIA. UM, SO LET ME JUST START, UH, WITH ACKNOWLEDGING THE OBVIOUS, WHICH IS THAT TAX ABATEMENT POLICIES ARE PROBABLY SOME OF THE MORE, UH, SENSITIVE AREAS OF POLICY CONVERSATIONS. SO WHEN WE START WITH THIS, UH, WE HAVE TO ACKNOWLEDGE THAT, UM, THE GOAL OF ANY TAX ABATEMENT PROGRAM IS TO, UH, ENHANCE THE PUBLIC GOOD. WHAT'S THE RETURN ON INVESTMENT? AND I HAVE BEEN PRIVY, AND I KNOW A NUMBER OF OUR COLLEAGUES HAVE OVER THE LAST SEVERAL YEARS, THE CONVERSATION ABOUT WHAT, WHAT ARE WE TRYING TO INCENT? IS IT JUST THE TOTAL NUMBER OF JOBS? WHAT KIND OF JOBS ARE WE AFTER? IS IT, WHAT IS IT? IS IT AFFECTING SOME OF OUR TARGETED POPULATIONS? IS IT BRINGING IN OUR TARGET INDUSTRY JOBS? IS IT INCREASING THE LEVEL OF PROSPERITY IN OUR COMMUNITY? I HAVE TO SAY, AFTER LOOKING AT THE PRESENTATION, UM, YOU'VE DONE A REALLY GOOD JOB OF LISTENING TO ALL THOSE CONVERSATIONS AND INCORPORATING, UH, ELEMENTS OF EACH ONE. I HAVE A FEW SPECIFIC, UH, [00:45:01] QUESTIONS, UH, RELATED TO, UM, ONE OF THE BULLETS ON PAGE 13. THE LAST PART, I, I'M NOT CLEAR ON UNDERSTANDING THE MEET TWO AND MEET THREE PRIORITIES, 50% AND A HUNDRED PERCENT GUIDELINES. AND SO IF TWO OF THOSE ITEMS ON THE LIST ARE MET, THEY WOULD ACHIEVE A 50%, UM, TAX ABATEMENT. HOW DOES THAT, HOW IS THAT IMPACTED BY THE NUMBER OF JOBS AND WHAT TARGET AREA AND SO FORTH? SO, UM, CAN YOU, CAN YOU REPEAT THE FIRST PART OF YOUR QUESTION'S? JUST TRY TO GET TO THIS. SO A PERCENT PERCENTAGE OF ABATEMENT, I GUESS JUST WALK ME THROUGH PERCENTAGE OF ABATEMENT AND HOW THAT WORKS. SURE. SO, UM, WHAT WE WANT TO DO IS CREATE A VERY OBJECTIVE WAY OF INFORMING BUSINESSES WHEN THEY COME HERE. PRIOR TO THIS FRAMEWORK, IT WAS BASICALLY UP TO 50, UP TO A HUNDRED, YOU, WE KIND OF NEGOTIATED WITH THE COMPANY. NOW WHAT WE'RE DOING IS DEFINING THOSE THINGS THAT WE'RE ACTUALLY LOOKING FOR. SO IF A COMPANY, UH, FIRST OF ALL, IN TERMS OF TERM LOCATES IN THE, UH, THE INCLUSIVE GROWTH AREA, IT'S 10 YEARS. IF IT'S NOT AN INCLUSIVE GROWTH AREA, SIX YEARS. BUT IN TERMS OF PERCENTAGE OF THE ABATEMENT, IF THEY CHOOSE TWO OF THE, OR QUALIFY FOR TWO OF THE PRIORITIES, THEY GET 50%. SO A COMPANY COMES IN, IT'S AN IT COMPANY, AND THEY CREATE 30% OF THEIR JOBS THAT ARE HIGH WAGES, AND THEY SAY, THAT'S WHAT WE'RE BRINGING TO THE TABLE. WHILE YOU QUALIFY FOR A 10 YEAR 50% ABATEMENT. HOWEVER, IF YOU CONSIDER ADDING PAID INTERNSHIPS AND SPENDING 5% OF THE VALUE OF YOUR TAX ABATEMENT ON, ON INTERNSHIPS, PAID INTERNSHIPS, THEN YOU IN ESSENCE CHECK THREE OF THE PRIORITIES AND WOULD RECEIVE A HUNDRED PERCENT. THIS IS VERY TRADITIONAL. THIS IS WHAT WE'VE BEEN NEGOTIATING A LOT OF. MORE RECENTLY, I'VE BEEN BRINGING FORWARD THIS IDEA OF WANTING TO EMBED PAID INTERNSHIPS AND USING THE, THE ACTUAL INVESTMENT AND THE ABATEMENT VALUE TO COVER THOSE. WHAT'S NET NEW IS, AND WHAT WE SEE A LOT OF, UM, ARE PROJECTS THAT AREN'T TARGETED INDUSTRY BUSINESS SERVICES PROJECTS. SO THEY'D COME TO THE TABLE, THEY'RE NOT A TARGETED INDUSTRY, AND PERHAPS THEY DON'T HAVE 30% OF THEIR EMPLOYEES THAT ARE REACHING THAT HIGH WAGE, BUT THEY'RE MAYBE AT 20%. AND SO IF THEY INCREASE THAT NUMBER TO ANOTHER 10% OF THOSE TOTAL JOBS, THEY COULD CHECK THAT BOX. IN ADDITION TO THAT, IF THEY WERE WILLING TO ALSO LAYER IN PAID INTERNSHIPS THAT WOULD GET THAT COMPANY A 50% ABATEMENT. HOWEVER, COMPANIES ARE ALWAYS TRYING TO MAXIMIZE THE BENEFIT. AND SO WHAT WE WANTED TO DO IS MAKE IT VERY CLEAR THAT IF THEY JUST DID TWO, OR EXCUSE ME, ONE OTHER THING FROM THESE TWO OTHER AREAS, THEY WOULD QUALIFY FOR A HUNDRED PERCENT SO HIGHER FROM THE INCLUSIVE GROWTH AREA, WHICH IS, WHICH IS DIFFICULT AND CHALLENGING, AND WE ACKNOWLEDGE THAT. SO HOPEFULLY THERE ARE COMPANIES THAT ACKNOWLEDGE IT, THAT'S, THAT'S A DOABLE GOAL. THAT'S FROM THE YELLOW AREA. UM, SO IF THE COMPANY'S WILLING TO DO THAT, WE WOULD CHECK THE BOX AND THEY WOULD ESSENCE GET, UH, A HUNDRED PERCENT. HOWEVER, IF THAT'S SOMETHING THAT WAS TOO ONEROUS CHALLENGING FOR THE COMPANY, THE FIFTH OPTION IS PARTNERSHIP OPTIONS. AND THAT'S WHERE WE'RE REALLY TIED TOGETHER, SAY TOMORROW. AND THESE PRIORITIES. NOW THESE ARE THE PRIORITIES WE'VE BEEN HEARING FROM YOU ALL AS OUR POLICY MAKERS THAT ARE IMPORTANT. AND AS I'VE PRESENTED PROGRAMS, I OFTEN TALK TO YOU ABOUT WOULDN'T IT BE GREAT IF THEY EMBEDDED THIS INTO THE PROJECT? WE'LL NEGOTIATE THAT IN. NOW WE'RE MAKING IT VERY CLEAR IF THEY CHOOSE TWO OF THESE FOUR AND SPEND 15% OF THE TOTAL VALUE OF THEIR ABATEMENT ON TWO OF THESE FOUR, THEY COULD CHECK THAT THIRD BOX. AND SO THAT'S IN ESSENCE, UH, THE FRAMEWORK. MAYOR IS, UM, CHECKING TWO OF THE PRIORITIES FOR 50, OR CHECKING THREE TO RECEIVE A HUNDRED AND HAVING THAT ALL, UH, PREPACKAGED ON THE FRONT END. OKAY. BUT WHEN IT COMES TO THE PARTNERSHIP OPTIONS, YOU'RE LOOKING FOR AT LEAST TWO OF THOSE PROGRAMS? THAT'S RIGHT. THAT'S RIGHT. OKAY. AND SO WHERE WE SEE PERHAPS COMMUTER BENEFITS, UH, PLAYING A PRETTY SIGNIFICANT ROLE ARE PROJECTS THAT PERHAPS COMING DOWNTOWN OR TWO OTHER AREAS THAT ARE VERY CONGESTED. UH, UH, IN ADDITION TO THAT, THESE ARE FROM A CORPORATE RESPONSIBILITY STANDPOINT, PROGRAMS THAT COMPANIES ARE COMING TO THE TABLE WITH ALREADY AND SAYING, YOU KNOW, THESE ARE THINGS THAT WE'RE WILLING TO DO. THESE ARE THINGS WE'RE DOING BECAUSE WE'RE GOOD CORPORATE CITIZENS. WE'RE VERY ADVANCED COMPANY INTERESTED IN, IN BEING A GOOD CORPORATE CITIZEN. SO WE'VE SEEN A SMATTERING OF THESE INITIATIVES FROM COMPANIES, AND WE WANNA GIVE 'EM CREDIT FOR THAT AND KIND OF PUSH THE BOUNDARIES A LITTLE BIT. SO, UH, LIKE ADRIAN SAID, SMALL BUSINESS UTILIZATION. WE HAVE THE INFRASTRUCTURE IN PLACE NOW, VERY SIGNIFICANT INFRASTRUCTURE TO BE ABLE TO HELP COMPANIES NOT ONLY FIND SMALL MINORITY VETERAN-OWNED BUSINESSES, BUT ALSO TRACK THEIR UTILIZATION. [00:50:01] SO THEY'RE WILLING TO SPEND 20% OF THEIR SORT OF DEVELOPMENT OR THEIR OPPORTUNITY SPEND OVER THE NEXT FIVE YEARS THAT WOULD CHECK THAT BOX AS ONE OF THE TWO SUSTAINABILITY, UH, HEALTH AND WELLNESS AND COMMUTER BENEFITS, SO FORTH. WAS THERE ANY CONSIDERATION GIVEN TO THE RELATIVE WEIGHT OF EACH OF THOSE FIVE ITEMS? FOR INSTANCE, UM, TARGET INDUSTRY, UM, AS A, AS A POTENTIAL PRE-QUALIFIER, LIKE THAT'S A GATING METRIC LIKE WE MM-HMM. , IF FOR INSTANCE, SHOULD WE BE, BE, BE ABATING ANY, UH, NEW JOBS THAT ARE NOT WITHIN TARGETED INDUSTRIES? WAS THAT QUESTION CONSIDERED? ABSOLUTELY. WAS CONSIDERED, UM, AND BROUGHT UP. AND SO THE FRAMEWORK VERY SPECIFICALLY CREATED A AREA IN WHICH TARGETED INDUSTRY WOULD BE COUNTED AS ONE OF THE OPTIONS. AND I'LL BE VERY FRANK, IT'S BECAUSE THAT'S WHAT WE WANT. AND SO THAT AUTOMATICALLY CHECKS THE BOX AND IN ESSENCE MAKES IT A LITTLE EASIER FOR THOSE PROJECTS THAT WE'RE LOOKING FOR. THE REALITY IS THE AVERAGE PROJECT IS AROUND $40 MILLION, 500 JOBS, NOT NECESSARILY TARGETED INDUSTRY. IT'S BUSINESS SERVICES, MANUFACTURING. THOSE ARE THOSE PROJECTS. SO IN THOSE CASES, WE WANTED TO REALLY MAXIMIZE, UH, THE COMPANY'S ENGAGEMENT WITH THE CITY IN TERMS OF POLICY PRIORITIES. YEAH, I WOULD ASK A SIMILAR QUESTION WITH THE INCLUSIVE HIRING, UH, IN, IN THE I G A AND THE I G A INCLUDES ALL OF THE ABOVE REGIONAL CENTERS, OPPORTUNITY ZONES, AND THEN, UH, IMPOVERISHED COMMUNITIES. THAT'S EXACTLY RIGHT. UM, THE, UM, I G A IS ALL THREE. NOW, THE REGIONAL CENTERS, AS THE SUB AREA PLANS ARE APPROVED BY COUNCIL. I BELIEVE THERE'S SOME THIS YEAR OVER THE NEXT THREE OR FIVE YEARS, THEY WOULD BE LAYERED IN. SO, UH, THE OPPORTUNITY ZONES ARE ALREADY ESTABLISHED, AND THEN THE I G A, IS THOSE EXHIBITING 20% OR HIGHER? SO IT'S ALL THREE AREAS. OKAY. UM, YOU KNOW, I MEAN, AND, AND WE, WE HEAR THE RHETORIC THAT WE WANT TO SINK IN, WHICH IS THAT AS OUR CITY GROWS, AS IT BECOMES MORE PROSPEROUS, WE WANT THE PEOPLE WHO ARE HERE TO BENEFIT FROM THAT PROSPERITY REGARDLESS OF WHERE THEY ARE AND WHAT, WHAT KIND OF JOB THEY DO. IF WE ARE ABLE TO DO OUR JOBS AND LIFT THE STANDARD OF LIVING THROUGH THE USE OF THESE INCENTIVES, THEN WE'RE DOING THAT. WE'RE, WE'RE MEETING THAT EXPECTATION. ABSOLUTELY. THIS IS A REAL EVOLUTION OF OUR ECONOMIC DEVELOPMENT STRATEGY IN WHOLE. TO PROVIDE A LITTLE BIT OF A CONTEXT, YOU KNOW, EIGHT OR NINE YEARS AGO BEFORE CHERYL, CADEN HERE OR GAME WAS A RECRUITMENT GAME, MARKETING RECRUITMENT, GOING AFTER SORT OF BIG GAME HUNTING, RIGHT? THEN WE TRANSITIONED INTO THOSE TRADED, UH, CLUSTERS, THOSE, UH, TARGETED INDUSTRIES. BUT WE ALSO DID SOMETHING VERY SIGNIFICANT. WE STARTED LOOKING AT B R E RIGHT, AS A SIGNIFICANT WAY TO GROW JOBS, BUSINESS RETENTION, EXPANSION, LOCAL COMPANIES. WE ADDED THAT INTO OUR SUITE OF SERVICES. WE ALSO STARTED FOCUSING ON SKILL DEVELOPMENT AND INNOVATION. SO WE REALLY STARTED LOOKING INWARD. AND I THINK WHAT YOU SEE REPRESENTED HERE IS THAT THIRD EVOLUTION IN TERMS OF NOW, UH, TYING AND BOLTING ON PEOPLE AND TRYING TO UPSKILL THEM. YEAH, SURE. JUST, JUST A LITTLE MORE CONTEXT ON THIS. UM, SO WE, THE WAKE UP CALL WAS WHEN AT AND T LEFT SAN ANTONIO WITH REGARD TO ECONOMIC DEVELOPMENT. AND THEN MAYOR HARDBERGER CONVENED A, A GROUP OF CEOS TO TALK ABOUT WHAT DO WE NEED TO DO DIFFERENTLY? BECAUSE 15 YEARS AGO THE STRATEGY WAS, ANY JOB'S A GOOD JOB? SHE, ANYTHING THAT FLIES? YEAH. JUST, AND WE BEGAN THE CONVERSATION ABOUT TARGETING, TARGETING THOSE AREAS OF THE COMMUNITY THAT NEEDED HELP IN TERMS OF WORKFORCE DEVELOPMENT, BUT ALSO TARGETING THE INDUSTRY THAT WOULD RAISE THE BAR FOR THE COMMUNITY. AND IT WAS A LONG CONVERSATION, AND IT TOOK SEVERAL YEARS TO REALLY PUT IN PLACE THE STRATEGIES, UH, THAT JENNA IS LEADING THROUGH THE E D F UH, TODAY, AND HAVING BEEN A PART OF THAT PROCESS, I KNOW I'VE REPRESENTED THE CITY ON, ON HER EXECUTIVE COMMITTEE FOR MORE THAN THE PAST DECADE. UH, IT IS NOW FOCUSING 80% OF THEIR TIME ON THE TARGETED INDUSTRY AS OPPOSED TO THE OTHER WAY AROUND. UH, AND SO IT, IT TOOK QUITE SOME TIME AND WE WERE ABLE TO STRENGTHEN THAT THROUGH OUR E D F CONTRACT. SO BACK 15 YEARS AGO, THERE WAS NO PUBLIC PRIVATE PARTNERSHIP. E D F WAS ENTIRELY IN A SMALL WAY. IT WAS A SMALL BUDGET, BUT PRIVATELY FUNDED. AND THROUGH THAT AT AND T EXIT AND THE COMMITTEE THAT WAS PUT TOGETHER, [00:55:01] UM, THAT WAS CO-CHAIRED BY WAYNE PEACOCK AND DAVID ZACHARY. UH, GRAHAM WESTON SERVED ON THAT. ELAINE MENDOZA. ALBERTO GAR. YEAH, ALBERTO WAS ON IT AS WELL. KIM, UH, KEN HALLADAY. SO IT WAS A SMALL GROUP, BUT THEY, AND, AND WE SAID, WE'LL, DOWNSIZE AS A CITY ECONOMIC DEVELOPMENT OR INCREASE BASED ON THE RESULTS THAT IT WASN'T ABOUT, UM, KEEPING WHAT WE HAD, BUT RATHER WHAT'S IN THE BEST INTEREST FOR THE COMMUNITY. SO WE TALKED ABOUT THAT FROM THE STANDPOINT OF HOW DO WE, HOW DO WE CREATE A BETTER WORKFORCE? BECAUSE THAT'S THE FIRST QUESTION PEOPLE ALWAYS ASK ABOUT, DO YOU HAVE THE JOBS THAT CAN HELP ME EXPAND IN SAN ANTONIO OR BE RECRUITED TO THE COMMUNITY? AND THEN THE OTHER THINGS, AND SOMETIMES PEOPLE THINK THAT IT'S ABOUT HOW MANY INCENTIVES ARE PROVIDED, AND IT'S, IT'S NOT THAT IT'S THE TOTAL PACKAGE, BUT WORKFORCE IS, IS THE MOST IMPORTANT. AND SO, UM, WE TRIED TO FOCUS OUR EFFORTS IN THAT REGARD, WHICH IS WHY WE MOVED SA WORKS UNDER THE E D F, AND WE WORK IN PARTNERSHIP ON THAT TO ENSURE THAT WE'RE ALL AT THE TABLE. SO THE CREATION OF PUBLIC FUNDS INTO THE E D F FOR A PUBLIC PRIVATE PARTNERSHIP HAPPENED NOW, WHAT, SEVEN YEARS AGO? SEVEN, NINE. UH, WE'RE IN OUR SECOND, SECOND CONTRACT, BUT PERFORMANCE METRICS THAT ARE CONTINUED TO STRENGTHEN AND SUPPORT THAT EFFORT. SO THEY'RE GETTING STRONGER EACH TIME. UM, WE'VE DONE A CONTRACT WITH THE E D F AND ABOUT HALF OF THEIR FUNDING IS, IS PUBLIC, HALF IS PRIVATE, AND THEY'RE WORKING TO BUILD, UH, THE PRIVATE EVEN FURTHER. BUT THE B R E PART CAME OUT OF THAT AT AND T EXIT EFFORT AS WELL. THAT IS NOT JUST ATTRACTING COMPANIES HERE, BUT SOME OF OUR LOCAL COMMUNITIES, UH, BUSINESSES WERE SAYING, HEY, WHAT ABOUT ME? I'VE BEEN HERE FOR 50 YEARS OR 40 YEARS AND I, I'M INVESTING. SO, UH, THE EFFORT REALLY IS MUCH BIGGER. THIS IS A HUGE PIECE OF IT, BUT IT IS ABOUT TARGETING, IT'S ABOUT GROWING BUSINESS IN THE COMMUNITY, AND IT'S ABOUT HELPING OUR WORKFORCE BE READY FOR THESE 21ST CENTURY JOBS, BECAUSE THEY'RE ONLY GETTING MORE AND MORE COMPLICATED IN THE SENSE THAT THEY NEED BETTER EDUCATION TO BE ABLE TO UNDERTAKE THE JOBS THAT WE ARE GROWING IN THE COMMUNITY AND ATTRACTING TO THE COMMUNITY. SO THIS EFFORT, USING OUR EQUITY ASSESSMENT TO GO THROUGH THE PROCESS AND HELP US TARGET IS ANOTHER REFINEMENT OF THIS EFFORT. AND I, RENEE'S DONE AN EXCELLENT JOB, ADRIAN, GREAT JOB. AND WE APPRECIATE THE PARTNERSHIP WITH THE E D F, UM, SO THAT WE CAN WORK ON THIS TOGETHER AND MAXIMIZE WHAT LIMITED RESOURCES WE HAVE AVAILABLE, UH, TO MAKE THE COMMUNITY ECONOMICALLY STRONGER FOR EVERYBODY, NOT JUST FOR A CERTAIN SEGMENT. I RECALL, UH, RENEE, YOU HAD DONE A, OR SOMEONE HAD DONE AN ECONOMIC IMPACT ASSESSMENT OF TAX ABATEMENT DOLLARS. WHAT IS THE RETURN ON INVESTMENT FOR A DOLLAR INTO AN INCENTIVE PROGRAM LIKE THIS FOR US? YEAH. UH, GREAT. GO. WE DID IT, UH, UNDER, UH, THE ECONOMIC AND WORKFORCE DEVELOPMENT COMMITTEE. WE DID, UH, ECONOMIC, UM, ASSESSMENT, A REAL, UH, COST BENEFIT ANALYSIS OF OUR CURRENT PORTFOLIO. AND, UM, LEMME JUST TIE ONE MORE, UM, ISSUE TO THAT, BECAUSE WHEN I PRESENTED TO E W D C I, THEY WERE ASKING ABOUT THE EFFECTIVENESS OF THIS, YOU KNOW, OF THESE TYPES OF PROGRAMS. AND SO THE BEST WAY TO, TO MONITOR AND EVALUATE THE EFFECTIVENESS OF OUR PROGRAM, GIVEN THAT WE'RE REALLY TRYING TO SOLVE FOR OUR ISSUES HERE IN SAN ANTONIO, WHICH MAKES IT HARD TO COMPARE TO OTHER PEER CITIES, IS REALLY THROUGH, AS YOU MENTIONED, THE RETURN ON INVESTMENT. SO THAT STUDY SHOWED THAT BASICALLY FOR EVERY $1 OF INCENTIVE THAT WE OFFER, WE GET IN RETURN $5 AND 22 CENTS. AND, UH, AND THAT'S AN EXTREMELY CONSERVATIVE NUMBER. THAT'S IF WE ONLY LOOKED AT THE ACTIVE AGREEMENTS WE HAVE IN PLACE, THE DIRECT SNAPSHOT IN TIME, IN ADDITION TO THAT $5 AND 22 CENTS, UH, OF RETURN MAYOR, THAT DOES NOT INCLUDE THE $30 OF, OF PRIVATE SECTOR INVESTMENT THAT'S NOT INCLUDED IN THE 5 22 THAT IS LEVERAGED THROUGH THAT INCENTIVE. SO THAT EQUATED TO NEARLY $3 BILLION OF INVESTMENT, UH, THAT THOSE 72 PROJECTS REPRESENT. SO FROM AN EFFECTIVENESS STANDPOINT, I THINK OUR R O I IS IS, IS PRETTY EFFECTIVE. SO THE 5 22 IS THE DIRECT INVESTMENT. R O I YOU'RE NOT INCLUDING WAGE GROWTH, PERSONAL INCOME, THAT'S RIGHT. ALL THAT. OKAY. THAT'S RIGHT. THAT'S RIGHT. UM, WELL, I I THINK IT'S WORTH UNDERSCORING, I'LL CLOSE MY COMMENTS HERE. IT'S NOT THE INCENTIVES THAT ARE BRINGING, UH, [01:00:01] BUSINESSES HERE AND, AND GROWING JOBS HERE. IT'S, YOU KNOW, A STABLE WATER SUPPLY. THAT'S RIGHT. A RELIABLE ENERGY SYSTEM. IT'S THE FACT THAT WE HAVE GREAT QUALITY OF LIFE. IT'S GETTING BETTER. UH, WE'RE WORKING ON HOUSING ISSUES THAT OTHER CITIES ARE, ARE FALLING BEHIND ON. ALL THE THINGS THAT MAKE A A, A LIVABLE CITY ARE WHAT ARE ULTIMATELY BRINGING PEOPLE TO OUR DOORSTEPS. WHEN WE'RE ABLE TO USE AN INCENTIVE PROGRAM TO HIGHLIGHT GAPS IN EQUITY, UH, TARGETED INDUSTRIES, WE SHARPEN OUR ABILITY TO BRING THE RIGHT JOBS TO SAN ANTONIO TO HELP LIFT ALL COMMUNITIES. I'M VERY SUPPORTIVE OF THE APPROACH. MY ONE CAVEAT WOULD BE THERE'S A NUMBER OF DIFFERENT CHANGES HERE HAPPENING. MM-HMM. , I WOULD WANT TO GET AN UPDATE AT A REGULAR INTERVAL BECAUSE THINGS LIKE HIGH WAGES, HOPEFULLY THAT WILL CHANGE WHERE WE SCORE THAT NUMBER. UH, LIVING WAGE, OBVIOUSLY, WE, WE'VE EMPHASIZED THAT FOR A LONG TIME WITH THE, WITH THE INCENTIVE PROGRAM. THAT'S GONNA HOPEFULLY CHANGE AS WELL IN TERMS OF WHERE WE ARE AS A COMMUNITY. SO I WOULD WANT, WHAT, WHAT IS BEING ASKED OF US IN TERMS OF, UM, A ADOPTING A NEW POLICY, NEW POLICY GUIDELINES. WHAT IS THE TERM OF THE NEW POLICY? WHEN, WHEN ARE, WHAT'S THE PLAN TO COME BACK AND REVIEW? RIGHT. WE INTEND TO BRING THIS FORTH ON DECEMBER 15TH IS THE LAST 13TH IS THE LAST COUNCIL MEETING BY STATE STATUTE. WE HAVE TO REVIEW THE GUIDELINES EVERY TWO YEARS, BUT WE HAVE THE ABILITY TO, UH, TWEAK THEM IF WE'D LIKE. BUT WHAT WE'VE BEEN DOING IS PUTTING FRAMEWORKS TOGETHER. THIS IS THE FIRST SORT OF MAJOR OVERHAUL OF THIS FRAMEWORK. UH, AND WE'D LIKE TO BE IN PLACE FOR A COUPLE YEARS AND THEN REALLY MONITOR THE SUCCESS WE'VE HAD. JUST ON, ON A VERY QUICK NOTE, UH, THE ACTUAL, JUST, UH, SO YOU UNDERSTAND HOW THE LIVING WAGE AND ALL INDUSTRY WAGE, THOSE ACTUALLY INDEX AND CHANGE ANNUALLY. AND SO THAT CHANGE AUTOMATICALLY HAPPENS WITHIN THE GUIDELINES. AND THEY'VE BEEN INCREASING AT A PRETTY SIGNIFICANT CLIP. THE ALL INDUSTRY WAGE AROUND 3.5% INCREASE, THAT'S THE AVERAGE OVER THE LAST FIVE YEARS. SO WE ANTICIPATE THAT BEING AROUND $17 AFTER JANUARY ONE THAT'S REALLY BEEN DRIVING WAGES. SO THOSE INDEX AND CHANGE ANNUALLY. UH, AS FAR AS UPDATE, UH, E W D C ASKS FOR REGULAR UPDATES. SO, UM, MAYOR, WE'VE BEEN PRESENTING SORT OF UPDATES ON THIS REGULARLY, AND WE INTEND TO CONTINUE TO DO THAT. OKAY. GREAT. AND THE LAST THING I JUST REMEMBERED, UM, A FEW YEARS AGO, MAYBE A COUPLE YEARS AGO, THERE WAS A REPORT BY GOVERNING, I THINK IT WAS GOVERNING INSTITUTE THAT WAS RATHER SCATHING ON SOME MUNICIPALITIES AND HOW THEY HANDLE THEIR TAX ABATEMENT PROGRAMS AND, AND NON-TRANSPARENCY. YOU TOUCHED ON THIS. I WOULD, I WOULD HOPE THAT AS WE DEVELOP, AND WE MAY ALREADY BE THERE, I DON'T KNOW THAT WE SHOOT FOR THE GOLD STANDARD. WE WANT TO BE AS, AS OPEN AND AS TRANSPARENT WITH THE WAY THIS IS WORKING AND, AND OUR RETURN AS POSSIBLE. SO WE WENT THROUGH A COMPREHENSIVE OPEN DATA INITIATIVE IN MARCH. I BELIEVE ALEX LED THIS INITIATIVE. I'M HAPPY TO SAY FOR AT LEAST FIVE OR SIX MONTHS, ALL OF OUR TAX ABATEMENT AND GRANT AGREEMENTS ARE ONLINE. THE STATUS OF THOSE AGREEMENTS, THE MILESTONE REQUIREMENTS OF EACH OF THOSE COMPANIES IS POSTED AND WE UPDATE THAT ANNUALLY. YOU'RE REFERRING TO GOOD JOBS FIRST. WE TOOK THAT STUDY, WE IDENTIFIED WHAT WOULD GIVE US A PERFECT 100 SCORE, AND WE BASICALLY REPLICATED THAT. AND THAT'S WHAT'S ON OUR WEBSITE, MAYOR. TERRIFIC. OKAY. EXCELLENT JOB, Y'ALL. THANK YOU VERY MUCH. RENEE, COUNCILMAN PERRY. THANK YOU, SIR. AND, UH, THANK YOU RENEE AND, AND THE TEAM FOR, UH, WORKING THIS. I JUST WANTED TO GO BACK ONE MORE TIME TO SLIDE 21. DO YOU MIND BRINGING UP 21, SLIDE 21? YOU KNOW, THESE WERE, UH, SUMMARY OF FINDINGS, AND I THINK I ASKED THIS QUESTION LAST TIME ALSO, JUST, UH, THESE WERE THE SITE SELECTORS THAT DO THIS FOR A JOB GOING OUT LOOKING FOR PLACES FOR INDUSTRY, RIGHT? YES. UM, BUT DID WE, AND, AND THEY CAME UP WITH SOME GOOD, GOOD POINTS HERE. ARE WE CONFIDENT THAT, UM, YOU KNOW, WE HAVE, WITH THIS PROGRAM, WE'RE NOT ADDING TO THE COST OF THEIR BUSINESS AND WE, MIN WE'RE MINIMIZING THE ADMINISTRATIVE BURDEN ON NEW REQUIREMENTS? GREAT QUESTION. AND SO THIS WHOLE LAST YEAR, AS WE'VE BEEN DEVELOPING OUT THESE CONCEPTS AND IDEA WE'VE BEEN INCLUDING OR MONITORING STAFF TO REALLY DETERMINE WHAT'S FEASIBLE. WE CAN'T ASK A COMPANY TO DO SOMETHING IN WHICH WE CAN'T MONITOR. THAT IS EXTREMELY CHALLENGING FOR US. AND SO ALL [01:05:01] OF THE CRITERIA THAT YOU SAW, THOSE FIVE ITEMS, WE'VE DEVELOPED OUT WAYS TO MONITOR THEIR COMPLIANCE OF THOSE IN, UH, A WAY THAT'S, UH, LEAST ONEROUS AS POSSIBLE. RIGHT NOW, COMPANIES REPORT TO US TWICE A YEAR, AND THEN, UH, WE TAKE ACTION BASED ON WHAT IS AFFORDED TO US WITHIN THE CONTRACT. AND SO WE'RE GONNA BUILD A VERY SIMILAR TYPE OF STRUCTURE. IN OTHER WORDS, IF A COMPANY IS ONLY MEETING 90% OF THE GOAL, THE REACTION TO THAT IS THEY ONLY GET 90% OF THE TAX ABATEMENT. AND THAT IS A VERY, VERY LEAST BURDENSOME WAY OF, OF APPROACHING MONITORING. AND SO THAT'S THE WAY WE'VE APPROACHED ALL THESE, THESE ITEMS IS TO, UM, TO FIND THAT RIGHT BALANCE TO ENSURE THEY'RE DOING WHAT THEY SAY IN THE CONTRACT, BUT TO DO IT IN A WAY THAT THAT, UH, IS EASY FOR THE COMPANY. DOES THAT ANSWER YOUR QUESTION? YEAH. AND, AND, UM, AND I UNDERSTAND AGAIN ABOUT THE SITE SELECTORS, BUT DID WE KIND OF GO TEST THE WATER WITH COMPANIES THAT MAY NOT HAVE SELECTED SAN ANTONIO AND, UH, GOTTEN THEIR REACTION TO THIS TO GAUGE THEM? WOULD THIS HAVE CHANGED THEIR MIND? OR, UH, SO JENNA'S GOING THROUGH A CUSTOMER PERSPECTIVE STUDY RIGHT NOW. I DON'T KNOW, JEN, IF YOU WANNA GIVE SORT OF A HIGHLIGHT OR AT LEAST AN UPDATE ON, ON THAT STUDY AND, AND MAYBE CONNECT, UH, THE COUNCILMAN'S QUESTION TO, TO THAT EFFORT. SURE. SO THE, UH, QUICK ANSWER IS YES. AND, AND WE HAD A CHANCE TO, UH, DISCUSS THIS FURTHER DURING THE E W D C. THANK YOU, UH, PRESENTATION. BUT THERE WERE REALLY TWO SIMULTANEOUS TRACKS. SO THE FEEDBACK THAT WE RECEIVED THROUGH SITE SELECTORS HERE, AGAIN, FROM THOSE THAT WORKED WITH COMPANIES THAT SELECTED US AND DIDN'T SELECT US, AND SOME THAT DON'T EVEN HAVE SAN ANTONIO ON THEIR RADAR, RIGHT, FROM OTHER AREAS AROUND THE NATION. BUT IN ADDITION, THE OTHER TRACK WAS OUR CUSTOMER PERSPECTIVE PROJECT. THE IDEA THERE WAS BEYOND, AS CHERYL MENTIONED, BEYOND JUST TAX ABATEMENT IN GENERAL, WHAT IS SAN ANTONIO LIKE TO DO BUSINESS WITH, UH, FROM A MARKETING PERSPECTIVE, WHEN WE WELCOME YOU ALL THE WAY DOWNSTREAM, SO UPSTREAM ALL THE WAY DOWNSTREAM TO WHEN WE ACTUALLY CLOSE DEALS, AND WE HAVE SOME GREAT FEEDBACK THERE, FEEDBACK THAT WILL MAKE US BETTER, UM, AS AN ORGANIZATION, FEEDBACK THAT WILL MAKE US BETTER AS TEAM SAN ANTONIO. BUT PART OF THAT FEEDBACK WAS SPECIFIC TO OUR POLICIES. AND AGAIN, AS WE MENTIONED EARLIER, THE OPTIONALITY WILL BE VERY HELPFUL. WE HAD ORGANIZATIONS, UM, THAT WERE EXCITED ABOUT SAN ANTONIO THAT WANTED TO COME HERE. AND THEY, THESE ARE GREAT CORPORATE CITIZENS THAT WE'VE DECIDED WE WANTED TO PURSUE. THOSE THAT OFFER THE HEALTH BENEFITS, THOSE THAT DO A LOT, THEY CHECKED A LOT OF THOSE BOXES, BUT THEY HAD TRANSITIONAL OPPORTUNITIES WITHIN THEIR ORGANIZATIONS. THEY WERE NATURALLY UPSKILLING, BUT THEY MIGHT NOT HAVE CHECKED THE BOX ON HIGH WAGES RIGHT OUTTA THE GATES. AND SO THIS NEW GUIDELINES ACTUALLY OPENS UP THE OPPORTUNITY FOR THOSE TYPES OF ORGANIZATIONS. SO IT SOUNDS LIKE A LOT, AND THE CHANGES, UM, ARE, UM, A LOT. BUT AT THE END OF THE DAY, THIS IS GOING TO PROVIDE MORE OPPORTUNITY FOR THE COMPANIES THAT WE WORK WITH TO QUALIFY FOR POTENTIAL INCENTIVES. SO THEY SAW IT AS A POSITIVE. OKAY, WELL THAT'S, I THINK THAT'S VERY IMPORTANT TO, UM, ADAPT THIS PROGRAM THAT IS VERY EASY TO USE AND IT'S NOT CUMBERSOME AND IT'S COSTING ADDITIONAL MONEY FOR THOSE BUSINESSES TO RIGHT, TO COME HERE. SO THAT'S VERY IMPORTANT TO ME. AND, AND SO, UM, I REALLY APPRECIATE YOUR COMMENTS ON THAT, AND I APPRECIATE THE COMMENTS. I'M HEARING RETURN ON INVESTMENT A LOT MORE THAN WHAT I USED TO. UM, AND I THINK WE NEED TO BE, AND I'VE SAID THIS BEFORE, WE NEED TO BE MORE PROACTIVE, UH, IN ADVERTISING WHAT WE'RE GETTING FOR OUR DOLLARS WHEN THESE INCENTIVES ARE GOING TO THESE COMPANIES HERE TO EDUCATE THE, THE PUBLIC OUT THERE ON WHAT, WHAT WE'RE GETTING IN RETURN OVER TIME, UH, FOR THESE INCENTIVES. SO I THINK THAT'S VERY IMPORTANT TO KEEP THAT ON THE FOREFRONT TO, UH, LET PEOPLE KNOW WHAT WE'RE DOING AND WHY, AND WHAT THEIR, NOT OUR RETURN, WHAT THEIR RETURN IS ON THEIR TAX DOLLARS. SO THAT'S VERY IMPORTANT. UM, I, I REALLY APPRECIATE THE, UH, OPPORTUNITY Y'ALL INVITED ME TO GO, UH, SEE ONE OF THE COMPANIES HERE IN TOWN. AND THAT WAS VERY ENLIGHTENING TO ME. I, I ENJOYED THAT DISCUSSION. AND, AND AGAIN, I WOULD ENCOURAGE, UH, THE REST OF THE FOLKS AROUND THIS TABLE TO PARTICIPATE IN ONE OF THOSE VISITS. AND, UM, UM, YOU KNOW, AGAIN, BE INVOLVED AND SEE WHAT THOSE, SEE WHAT THOSE COMPANIES ARE REALLY NEEDING AND WHERE THEY NEED OUR HELP TO STAY HERE AND TO GROW OR BRING NEW BUSINESSES HERE TO SAN ANTONIO. AND TO ME, JUST AS IMPORTANT, REACH OUT TO THOSE BUSINESSES THAT DID NOT CHOOSE SAN ANTONIO AND DIG DEEP AS TO WHY THEY DIDN'T. AND, UM, KEEP THAT ON THE FOREFRONT AND APPLYING THAT TO THESE PROGRAMS. AND, AND [01:10:01] I, I LOOK AT THIS PROGRAM AS AN ITERATIVE PROCESS OVER TIME. IF WE NEED TO ADJUST SOMETHING, WE NEED TO GO AND ADJUST IT. THAT'S RIGHT. THAT'S RIGHT. AND, AND MAKE IT MORE ACCOMMODATING AND, AND, UH, UM, YOU KNOW, HOPE THAT MORE COMPANIES DO COME HERE TO SAN ANTONIO. YOU GOT IT. ONE MORE COMMENT THERE. UM, THANK YOU FOR, UH, YOUR COMMENT AND ALSO FOR PARTICIPATING IN THE RECENT B R E VISIT. UH, YOU BROUGHT UP A GREAT POINT THOUGH. YOU KNOW, AS WE'RE GETTING FEEDBACK FROM SITE SELECTORS AND, AND COMPANIES THAT WE WORK WITH, THE, THE BEST FORM OF FEEDBACK IS THE FEEDBACK FROM OUR COMPANIES RIGHT HERE IN TOWN, INCLUDING THOSE THAT WE VISIT WITH, WITH, UH, B R E VISITS, BUT ALSO THOSE THAT SERVE ON MY EXECUTIVE COMMITTEE THAT, UH, CHERYL SERVES ON AS WELL. SO, CRAIG BOYAN FROM H E B, WAYNE PEACOCK, FROM U S A, DAVID MCGEE, THOSE TYPES. UM, WE ARE GOING THROUGH, I KNOW YOU'RE A BIG FAN OF OUR KPIS. WE HAVE A LAUNDRY LIST OF OVER 60, AND WE ARE RECOMMENDING WITH OUR PRIVATE, UH, INDUSTRY SUPPORT, WE'RE ACTUALLY RECOMMENDING THAT ONE OF OUR COMMUNITY INDICATORS WE ADD FOR NEXT YEAR IS ECONOMIC MOBILITY. BECAUSE WHAT WE DO WITH OUR PARTNERS AT SA WORKS, UH, AND WITH THE OTHER DELEGATE AGENCIES FROM THE CITY SHOULD BE MOVING THAT NEEDLE. AND SO I THINK IT'S IMPORTANT TO SHOWCASE THAT, THAT THEY REALIZE THAT ECONOMIC MOBILITY IS IMPORTANT. AND I WOULD COUPLE THAT WITH FEEDBACK THAT WE'VE BEEN GIVEN FROM SITE SELECTORS, THAT SOMETIMES SAN ANTONIO DOESN'T EVEN MAKE THE LIST. SO OUR EDUCATIONAL ATTAINMENT LEVELS OR THE ECONOMIC SEGREGATION WILL STRIKE US OFF THE LIST WAY UPSTREAM BEFORE WE EVEN KNOW THAT WE'RE, WE HAVE AN OPPORTUNITY WITH THIS COMPANY. AND SO IF WE DON'T ADDRESS THESE LONGER TERM NEEDS THAT Y'ALL ARE LOOKING AT TODAY, WE WON'T EVEN HAVE THE SHOT FURTHER DOWNSTREAM TO CLOSE SOME OF THESE DEALS. SO, I KNOW WE'RE TALKING ABOUT TAX ABATEMENT NOW, WHICH IS DOWNSTREAM, BUT THIS IS IMPORTANT FROM A POLICY PERSPECTIVE, AND I'M SO PLEASED THAT Y'ALL ARE THINKING ABOUT IT. THANK YOU. GREAT. HEY, THANK Y'ALL VERY MUCH. APPRECIATE IT. THANK YOU, SIR. THANK YOU. COUNCILMAN PERRY. COUNCILMAN SALANA. THANK YOU, MAYOR. AND, UH, IF I CAN ASK, UH, RENEE, THANK YOU AGAIN FOR COMING BY, UH, THE OFFICE AND GETTING TO WALK ME THROUGH A LITTLE OF THE PRES PRESENTATION. UM, I'M, I'M REALLY HAPPY WITH A LOT OF THE GENERAL DIRECTION WE'RE SEEING, ESPECIALLY IF YOU LOOK AT THE, THE HISTORY OF WHAT WE USED TO INCENTIVIZE AND WHAT QUESTIONS WE DIDN'T ASK. UH, WE'RE FINALLY ASKING IMPORTANT ONES THAT HAVE LED TO CHECK BOXES, RIGHT. THAT YOU NEED TO HIT. AND SO CAN WE LOOK AT, AT, AT PAGE 18? 'CAUSE I WANNA TALK ABOUT THIS IDEA OF ALL OF THE, OF THE PARTNERS THAT WE USE. IT'S THE UPSCALE PARTNERS NETWORK, RIGHT? UH, YOU HAVE, UH, IN THE PRESENTATION, UH, A NUMBER OF NONPROFITS THAT WE SUPPORT. AND, AND I KNOW THAT, UH, FOLKS LIKE RAM BARRERA FROM, UH, SA WORKS ARE HERE TOO, WHO ALSO PARTNER WITH THESE GROUPS. CORRECT. TO UNDERSTAND WHERE IT IS THAT WE'RE MISSING SOME GAPS. LET ME ASK YOU A QUESTION THAT'S GONNA GET TO A BIGGER POINT HERE, AND IT'S NOT MEANT AS A POP QUIZ, BUT DO YOU KNOW WHAT OUR CURRENT UNEMPLOYMENT RATE HERE IS IN SAN ANTONIO? THREE, 3.1. I WAS ABOUT TO SAY 3.1. JENNA . THANK YOU. 3.1. YES. EVERYBODY'S ON THEIR TOES. I'M GLAD. UH, THANK YOU JENNA. UM, AT 3.1, I REMEMBER A TIME, EVEN, EVEN WHEN THE RECESSION HIT THE HARDEST ACROSS THE COUNTRY, UH, SAN ANTONIO WAS STILL SEEING THAT'S RIGHT. RECESSION PROOF THAT OUR, OUR RATE WAS HOVERING CLOSE TO 7% WHILE IT WAS 1415 IN OTHER PARTS OF THE COUNTRY. SO, AS I THINK ABOUT THE UPSKILL PARTNERS, WHAT YOU HAVE TOLD ME, AND, AND MAYBE YOU'LL REPEAT IT HERE, IS THAT THESE FOLKS, UH, THESE ORGANIZATIONS HAVE LISTS OF INDIVIDUALS WHO HAVE GONE THROUGH, WHETHER IT'S DRESS, DRESS FOR SUCCESS OR CHRYSALIS RESTORE EDUCATION, THEY HAVE LIST OF INDIVIDUALS WHO ARE ACTIVELY LOOKING FOR WORK OR ACTIVELY LOOKING TO UPSKILL ON THEIR OWN. THAT'S RIGHT. AND YOU'VE TOLD ME THAT THEY HAVE NO ISSUES WITH, WITH SHARING THAT INFORMATION WITH ONE GROUP TO THE OTHER, OR WITH YOUR ORGANIZATION WHO KNOWS EMPLOYERS. THAT'S, THAT'S SOMETHING THAT IS IN A NON, IT'S A NON-ISSUE. YEAH, WE, WE'VE ABSOLUTELY TALKED ABOUT THAT. I'LL LET ADRIAN, WHO'S, WHO'S THE MANAGER OVER THAT WHOLE SYSTEM, KIND OF SPEAK TO IT A LITTLE BIT. OKAY. SO AS, AS YOU'RE GOING UP, ADRIAN, THINKING ABOUT THIS QUESTION, HERE'S WHY I ASK ABOUT, UH, THE UNEMPLOYMENT RATE. UH, I WOULD IMAGINE THAT THE UNEMPLOYMENT RATE IS FOR THOSE FOLKS WHO ARE IN THE LABOR MARKET LOOKING FOR WORK, CORRECT? UH, MAY BE DIFFERENT IF WE LOOKED AT ZIP CODES AND A ZIP CODE, YOU MIGHT SAY THAT FOLKS HAVE GIVEN UP ON LOOKING FOR WORK AND THE UNEMPLOYMENT RATE WOULDN'T, WOULDN'T REALLY REFLECT THAT. UH, IS THAT WHAT YOU'RE TRYING TO TIE US TO? 'CAUSE THIS, I WOULD CATEGORIZE AS INDIVIDUALS WHO ARE LOOKING FOR WORK IN THE LABOR MARKET, WHO CAN BE TRACKED BY AN UNEMPLOYMENT RATE, UH, WHICH IS GOOD. 'CAUSE I DON'T THINK WE DO ENOUGH OF A JOB OF CONNECTING THEM. UM, BUT IN YOUR WORK, ADRIAN, YOU'RE LOOKING AT WHAT YOU'VE TERMED AS THE UPSCALE PARTNER NETWORK, THE, THE GROWTH NETWORKS, OR WHAT ARE THEY CALLED? THE UP GROWTH AREAS? UPSCALE PARTNER NETWORK. THAT'S CORRECT. COUNSEL UPS. YEAH. THE UPSCALE PARTNER NETWORK, AND THEN THE INCLUSIVE GROWTH AREA. THIS IS WHERE I THINK WE'RE GOING TO A 2.0 VERSION, WHERE WE'RE NOT JUST LOOKING AT, UH, THE FOLKS IN THE LABOR MARKET AND CONNECTING THEM, WHICH I THINK WE SHOULD, BUT YOU'RE SUGGESTING TO SOME EMPLOYERS THAT THEY ACTIVELY GO INTO SOME OF THESE COMMUNITIES. UM, THE TIER ONE, TIER TWO, TIER THREE, AND WHAT DOES THAT LOOK LIKE? BECAUSE I THINK THAT'S A HARDER IN ON THE GROUND LOGISTICS. UH, UH, BUT IF, BUT IF IT MEANS YOU'RE IN MY COMMUNITIES IN 7, 8, 2, 4, 2 OR OTHERS, UH, IT, IT'S A NEW GROUND FOR US THAT I, I DON'T THINK I'VE EVER HAD A CONVERSATION ABOUT. TALK [01:15:01] TO ME ABOUT THAT. YEAH, I THANK YOU, COUNCILMAN. I THINK YOU'RE REALLY KEYING IN ON SOMETHING THAT WE FELT WAS EXTREMELY IMPORTANT IN THE UPSKILL, UM, PROJECT TYPE IS IN THAT THROUGH A TAX AMENDMENT, WHAT WE WANT TO DO IS GET THE EMPLOYER INVESTED IN THESE TARGETED AREAS, AND OVER TIME, CONTINUALLY LOOK AT HOW WE CAN BETTER TARGET THOSE AREAS. UH, ADDITIONALLY, OUR INTEREST IN THE INFORMATION SYSTEM IS TO FACILITATE THEM, THE EMPLOYER BEING ABLE TO IDENTIFY TALENT, UH, WITHIN THE UPSCALE PARTNER NETWORK, AVAILABLE TALENT THAT'S LOOKING FOR JOBS. ADDITIONALLY, FOR THE NONPROFITS THAT WE'VE BEEN PARTNERING WITH, YOU KNOW, IF, IF WE PARTNER WITH A LITERACY, UH, NONPROFIT, THEIR ENTIRE FOCUS MAY BE LITERACY, NOT FINDING A JOB, NOT, UH, MAYBE MOVING TO THE NEXT STEP. AND SO BY BOLTING ON OUR R F P AND THE CITY'S MONEY, WE'RE NOW ADDING THESE OTHER ELEMENTS TO A NONPROFIT WHO DOES A VERY GOOD JOB AT MAYBE LITERACY AND SAYING, NOW LET'S TALK ABOUT HOW CAN WE GET THEM A JOB THROUGH YOU AS WELL. 'CAUSE WE'RE GONNA PROVIDE YOU WITH THIS INFORMATION SYSTEM. WE'RE GONNA, WE'RE GONNA CREATE INFRASTRUCTURE THAT YOU CONNECT TO, THAT IT ENHANCES THE SERVICE THAT YOU'RE PROVIDING. AND SO NO LONGER ARE YOU JUST PROVIDING LITERACY. NOW THERE'S JOB OPPORTUNITIES ASSOCIATED WITH BEING SERVED BY YOUR BE WHO YOU ARE, NONPROFIT. WE DON'T WANNA CHANGE YOUR MISSION, SERVE THAT MISSION. BUT WHEN YOU TAKE A DOLLAR FROM THE CITY, WE ALSO WANNA MAKE SURE, ESPECIALLY IF IT'S AN ECONOMIC DEVELOPMENT DOLLAR, THAT THERE IS A JOB OPPORTUNITY ASSOCIATED WITH THAT. AND THAT THERE IS A MILESTONE, A NEXT STEP FOR THAT PERSON TO GO TO AFTER THEY GET THAT ONE ELEMENT. SO WE'RE REALLY TRYING TO PUT ALL OF THOSE PIECES TOGETHER, UM, THROUGH, THROUGH THIS TYPE OF PROJECT AND THROUGH THE UPSCALE PARTNER NETWORK. UH, MORE IMPORTANTLY, COUNCILMAN, I THINK YOU, YOU'RE HEARING ON SOMETHING THAT WILL DIFFERENTIATE THIS APPROACH FROM A LOT OF OTHER APPROACHES. UM, AND THAT WE WANT TO TRY TO EVOLVE HOW WE RELATE TO THE EMPLOYER BY PROVIDING VALUE TO THEM. TO COUNCILMAN PERRY'S PERSPECTIVE. IF WE ARE INVESTING IN NONPROFITS, HOW CAN WE PUT RFPS OUT SO THAT THE NONPROFITS ARE PROVIDING VALUE TO THE BUSINESS IN TERMS OF PRE-SCREENED INDIVIDUALS OR SUPPORTED INDIVIDUALS HELPING INDIVIDUALS BECOME MORE LIABLE AS AN EMPLOYEE. UM, AND SO THAT'S, THAT'S REALLY OUR INTENT WITH SOME OF THIS. HMM. AND THE ONLY THING I WOULD ADD, UM, COUNCILMAN SALDANA IS IN TERMS OF THE INCLUSIVE GROWTH AREA, I, I THINK THIS IS THE PER PERFECT REPRESENTATION OF WHAT ADRIAN WAS TALKING ABOUT EARLIER, THE INCLUSIVE GROWTH ACTORS COMBINING WITH THE, UM, GROWTH ACTORS, GROWTH ACTORS BEING THE COMPANIES, THE EDFS OR SHOP, THESE ARE THE INCLUSIVE GROWTH ACTORS. THESE ARE THE COMMUNITY-BASED ORGANIZATIONS THAT ARE ALREADY IN THOSE COMMUNITIES, AND IN SOME CASES WORK WITH EMPLOYERS. FAMILY SERVICES CERTAINLY DOES, AND SO DOES GOODWILL. SO IN A LOT OF CASES, THIS IS A WIN-WIN BECAUSE THESE ARE THE AGENCIES THAT ARE BOOTS ON THE GROUND IN THOSE NEIGHBORHOODS ALREADY SERVING THEM. SURE. SO THEY'RE GETTING SERVICES. IN SOME CASES THEY MIGHT BE WORKING, BUT NOT ONLY ARE WE PROVIDING THE HANDOFF, BUT ALSO AS ADRIAN POINTED OUT, THE ACTUAL, UM, JOB OPPORTUNITY AT THE END. GREAT. WELL, AGAIN, THANK YOU THAT, THAT'S A REALLY GREAT APPROACH THAT I THINK WE'RE TAKING ON. UH, I'M LOOKING FORWARD TO, TO TRACKING, UM, IN ANY CAPACITY WHAT THIS LOOKS LIKE YEARS ON IN, IN THE FUTURE ABOUT HOW, HOW WE'VE ACTUALLY CONNECTED THE UPSKILL PARTNER NETWORK TO, UH, EMPLOYERS WHO'VE COME IN. SO THE SECOND QUESTION I HAD IS NOW, NOW ONTO THE EMPLOYERS. WE'RE NOW ATTRACTING EMPLOYERS THAT OFFER MORE OF A, OF A GATEWAY OF OPPORTUNITY. THAT, THAT I THINK IS, IM IMPORTANT FOR, FOR US TO BE PROUD OF, TO SAY, WE SUPPORT THIS COMPANY BECAUSE IT DOES ALL OF THESE THINGS AND, AND REALLY OFFERS A LEG UP OR A HAND UP FOR, UH, OUR, OUR COMMUNITY. SO THE, AS I LOOK AT SOME OF THE CATEGORIES THAT I THINK THEY HAVE TO HIT, THERE'S LIKE THESE BARS THAT, YOU KNOW, YOU MUST BE, YOU MUST HIT THIS BAR, YOU MUST HIT THIS BAR, UH, IN ORDER TO RECEIVE A 50% OR A HUNDRED PERCENT. UM, MY FIRST QUESTION IS, IS ARE THESE THINGS LIKE, AS OF RIGHT, IF YOU GET THESE, IF YOU HIT THESE, YOU AUTOMATICALLY GET, UH, THE ABATEMENTS. IF, IF YOU ARE A INDUSTRY THAT MEETS, UH, TWO OF THESE PRIORITIES. THAT'S IT. NO QUESTIONS ASKED. I'VE MET THE, THE, THE BARS AND THE CATEGORIES. I DON'T HAVE TO COME BEFORE A COUNCIL, OR I DON'T HAVE TO COME BEFORE ANYONE ELSE TO REVIEW THIS. COUNCILMAN. NONE OF OUR PROJECTS ARE AS A, RIGHT. OKAY. EVERY SINGLE PROJECT COMES BEFORE COUNCIL IS NEGOTIATED. AND, UH, NOT ONLY ARE THERE REQUIREMENTS WITHIN THE CONTRACT IN TERMS OF SOME OF THESE THINGS, BUT THERE'S ALSO CLAWBACK PROVISIONS AND RECAPTURE PROVISIONS IN ALL OF OUR CONTRACTS. AND IT'S ALSO NOT AS A RIGHT IN TERMS OF DO THEY JUST CHECK THE BOX? I MEAN, FROM A TARGETED INDUSTRY STANDPOINT, THERE ARE A CODES THAT WE'LL BE REFERRING TO, TO MAKE SURE THAT THE MAJORITY OF THEIR BUSINESS ACTIVITIES ARE WITHIN THAT INDUSTRY. HIGH WAGES. THAT'S A REPORT THAT WE WOULD GENERATE IN TERMS OF WHAT WAGES ARE THOSE INDIVIDUALS RECEIVING WITHOUT, UH, WITHOUT BENEFITS. AND SO NONE OF 'EM ARE NECESSARILY AS OF RIGHT OR JUST CHECK THE BOX. WE HAVE TO VERIFY THAT THEY'VE MET A MINIMUM THRESHOLD. SO WHAT WE'RE DOING IS CREATING, UM, MINIMUM SORT OF YARDSTICKS FOR EACH OF THESE ACTIVITIES TO MAKE SURE THEY AT LEAST DO THIS. SO A LOT OF COMPANIES HAVE PAID INTERNSHIPS WITHIN THEIR COMPANIES, AND WE WANT TO GIVE 'EM CREDIT FOR THAT. WE DON'T WANT THEM TO HAVE TO SIGN UP FOR SOMETHING THAT NEW. BUT THERE'S A CERTAIN TYPE OF INTERNSHIP THAT WE'RE INTERESTED IN DOING, WORKING WITH ROMANITA. [01:20:01] YOU KNOW, ARE THEY PAID, ARE THEY HIGH SCHOOL OR ARE THEY COLLEGE? WHERE ARE THOSE INTERNSHIPS? WHAT'S THE, THE EXPERIENCE THAT STUDENT IS HAVING? SO WE CREATE THESE SORT OF MINIMUM THRESHOLDS, THEN WE MONITOR THOSE. THAT'S A REQUIREMENT THAT WOULD BE IN PLACE IN, IN FIVE YEARS, AND THAT THAT 5% SPEND. SO THOSE ARE THE THINGS WE'D BE CHECKING. GOTCHA. OKAY. SO IT, IT, IT, IT ISN'T THE CASE THAT, UM, YOU KNOW, THE ONLY PROJECT THAT I THINK WE'VE EVER INCENTED, BUT IT, IT WASN'T A, IT WAS A ROUNDABOUT WAY THAT I THOUGHT, YOU KNOW WHAT, THAT'S NOT NECESSARILY THE KIND OF INDUSTRY OR JOBS THAT WE CAN REALLY BE PROUD OF, WAS THE, UH, MARU SHA NOODLE PLANT. AND THAT WAS A DIFFERENT, THAT WASN'T A TAX ABATEMENT, THAT WAS, UM, I THINK A NON ANNEXATION AGREEMENT IN, IN THAT CASE. BUT THEY, THEY WOULD PROBABLY MAKE THE CASE AND SAY, LOOK, WE HAVE, UM, PAID INTERNSHIPS. WE DO INCLUSIVE HIRING, ESPECIALLY FROM AREAS, AND THEN WE CAN ALSO DO SOME OF THESE PARTNERSHIP OPPORTUNITIES. SO I WAS JUST HOPING THAT THAT WOULDN'T BE YEAH. AND KEEP IN MIND, JUST TO, YOU KNOW, GET IN THE FRONT DOOR WITH US FOR TRADITIONAL INDUSTRY PROJECTS, THE LIVING WAGE AND THE ALL INDUSTRY WAGE IS STILL IN PLACE. MM-HMM. , HOWEVER, IN CASES LIKE THAT, OR DISTRIBUTION CENTERS OR LOGISTIC TYPE OF OPERATIONS, THE UPSKILL NETWORK MIGHT BE AN OPPORTUNITY TO WHERE THEY'RE WILLING TO WORK WITH US ON HIRING FROM THESE POPULATIONS. YOU KNOW, LET'S TALK ABOUT THAT. AND SO IT, IT REALLY OPENS THE DOOR FOR US. AGAIN, THOSE AREN'T GONNA BE COMPETITIVE PROJECTS. THE COMPANY COMES IN AND SAYS, YOU'RE EITHER GONNA GIVE US THIS ABATEMENT, OR WE'RE GOING TO X, Y, Z COMMUNITY. THAT'S OKAY. THESE AREN'T COMPETITIVE. WHAT WE'RE LOOKING FOR ARE PARTNERSHIPS. AND IF WE CAN CREATE THAT PARTNERSHIP, THEN PERHAPS AN ABATEMENT WOULD BE THE RIGHT CHOICE. YEAH. IN EITHER CASE, IT COMES TO COUNCIL FOR APPROVAL. GREAT. WELL, THANK YOU AGAIN FOR THE PRESENTATION AND, AND FOR HAVING COME TO MY OFFICE TO TALK US THROUGH. THANK YOU, MAYOR. THANK YOU. COUNCILMAN SALANA, COUNCILMAN PAL, MAYOR. EXCELLENT WORK, GUYS. AND, UM, I'M GONNA, I'M GONNA GIVE YOU SOME PREAMBLE, UH, COMMENTS BEFORE I JUMP INTO IT. 'CAUSE I DON'T WANT YOU TO THINK THAT I DON'T, THAT, THAT I, THAT I DOUBT THE EFFORT THAT YOU GUYS PUT INTO THIS. 'CAUSE I THINK IT'S, I I THINK IT'S REALLY GOOD WORK. UM, I'M, I'M JUST CONCERNED, RIGHT? AND SO I NEED YOUR HELP TO MAKE SURE THAT I'M NOT CONCERNED OR THAT I'M NOT CONCERNED FOR THE RIGHT REASONS. AND SO, UM, I, THE OTHER PREAMBLE STATEMENT IS THAT, YOU KNOW, EQUITY IS A VALUE, RIGHT? AND CERTAINLY THERE IS A COMPELLING ARGUMENT TO BE MADE THAT WE NEED TO ALIGN OUR EQUITY VALUES ALONG WITH OUR ECONOMIC DEVELOPMENT EFFORTS. AND, AND I'M ON BOARD A HUNDRED PERCENT, RIGHT? UM, AND I THINK THAT YOU GUYS ARE, ARE WORKING ON WHAT EVERY ONE OF OUR DEPARTMENTS SHOULD BE WORKING ON, WHICH IS, YOU KNOW, HOW TO ALIGN OUR EQUITY VALUES WITH, YOU KNOW, OUR DAY-TO-DAY OPERATIONS. AND SO, UM, MY CONCERN IS, HOWEVER, THAT NO MATTER HOW WELL INTENTIONED THESE POLICY CHANGES MIGHT BE THAT THEY JUST MIGHT NOT WORK. THAT'S IT. RIGHT? AND, UM, THAT'S ALWAYS MY CONCERN WHEN IT COMES TO WHEN, WHEN IT COMES TO POLICY. AND, AND JENNA, I THINK YOU'RE, I DON'T THINK ANYBODY ON YOUR BOARD WILL DISAGREE WHEN I SAY THAT. THE ONE QUESTION WE CONSTANTLY NEED TO ASK OURSELVES WHEN IT COMES TO TAX ABATEMENTS IS, ARE WE REALIZING JOB BENEFITS? OR, UM, ARE WE REALIZING SOME KIND OF TAX-BASED BENEFIT, COMMENSURATE AT THE VERY LEAST, COMMENSURATE WITH THE LOSS IN REVENUE TO THE CITY, RIGHT? I MEAN, AT THE VERY LEAST, ARE WE NOT LOSING OUT, RIGHT? UM, AND THAT'S, THAT'S WHAT COUNCILMAN PERRY ASKS OF YOU GUYS ALL THE TIME. AND, AND YOU GUYS ARE DOING A GREAT JOB AT, AT MAKING SURE TO ANSWER THAT QUESTION ALL THE TIME. I, I, I DO THINK, HOWEVER, THAT WE ALSO NEED TO AT THE SAME TIME BE ASKING ALL THE TIME, UM, IS HOW DO WE KNOW THIS IS GONNA WORK? RIGHT? AND WHILE WE CERTAINLY DON'T HAVE CRYSTAL BALLS, WE CAN CERTAINLY, YOU KNOW, FORECAST BASED ON INFORMATION THAT WE'VE EXPERIENCED, RIGHT? AND MAKE INFORMED DECISIONS, BUT ALSO BY WAY OF BENCHMARKING. AND SO THE LAST TIME YOU GUYS GAVE THIS PRESENTATION TO THE ECONOMIC DEVELOPMENT COMMITTEE, UM, I REMEMBER THERE WAS A LIST OF WHAT, 22, 21 CITIES UP THERE THAT HAD SIMILAR POLICIES, RIGHT, RENEE, RIGHT. THEY WERE DEVELOPING OUT POLICIES. NOW, I WOULDN'T CHARACTERIZE THEM AS SIMILAR, BUT THEY WERE STARTING TO LOOK AT INCLUSIVE GROWTH TYPE OF PROGRAMS. GREAT. AND I DON'T KNOW IF THEY'RE STARTING TO, OR IF THEY ALREADY HAVE, RIGHT? BECAUSE, UH, AND I DON'T KNOW HOW LONG THOSE HAVE MANY MAYBE BEEN IN PLACE, RIGHT? AND SO I, I, I KNOW THAT YOU GUYS HAVE DONE SOME BENCHMARKING, 'CAUSE YOU SHOWED US LISTS WHERE DENVER AND BALTIMORE AND ALL THAT WERE UP ON THE SCREEN. BUT THOSE WERE BENCHMARKS OF CURRENT STATUS OF, YOU KNOW, POVERTY INDICATORS, RIGHT? AND DISTRESS INDICATORS. AND SO THOSE ARE IMPORTANT COMPARATORS, BUT EQUALLY IMPORTANT, I THINK IS ARE THERE, IS THERE ANY EVIDENCE THAT WE CAN GET FROM THOSE CITIES THAT HAVE IMP, YOU KNOW, THAT HAVE IMPLEMENTED SIMILAR POLICIES THAT THIS WORKS? SO ANY COUNCILMAN? SO, UH, THAT WAS PART OF THE POINT THAT WE WERE MAKING A LITTLE BIT EARLIER WITH WHY WE BROUGHT E P S INTO THIS CONVERSATION IN THAT THERE IS SOME, BUT IT'S SCARCE BECAUSE THIS CONCEPT OF USING YOUR VERY SHARP GROWTH ORIENTED TOOLS, THE ONES THAT YOU USE TO TAKE DOWN [01:25:01] THE BIG, YOU KNOW, JOB CREATION PROJECTS, THAT'S RELATIVELY NEW IN TERMS OF HOW ARE YOU USING THAT EQUITABLY. UM, THERE, THERE HAVE BEEN PROGRAMS, FOR INSTANCE, UH, WAR ON POVERTY PROGRAMS HAVE BEEN AROUND FOR DECADES. MM. THAT'S NOT WHAT WE'RE TALKING ABOUT. THOSE ARE THE, THE INCLUSION ACTORS THAT HAVE BEEN AT THAT GAME FOR A LONG TIME, WORKING WITH NEIGHBORHOODS, WORKING WITH DIFFERENT GROUPS, THAT'S SO SILOED FROM THIS KIND OF INCLUSIVE GROWTH PERSPECTIVE OF GETTING THE GROWTH ACTORS INVOLVED AND THOSE TOOLS SPECIFICALLY. SO IT'S RELATIVELY NEW, THIS WHOLE CONCEPT OF A DUAL ECONOMY BEING, UH, UH, UH, KIND OF, UH, SIM EMBLEMATIC OF HOW MAJOR METROS ARE GROWING AROUND THIS COUNTRY POST-RECESSION. AND IT REALLY HIGHLIGHTING THAT MAJOR METROS THAT ARE GROWING QUICKLY ARE, ARE DIVIDING AND HAVING MM-HMM. A DUAL ECONOMY CREATED. THAT'S SOMETHING THAT EVEN THE BROOKINGS INSTITUTION IS SAYING, HEY, LET'S CALL TOGETHER MAJOR METROS AND HAVE A CONVERSATION ABOUT WHAT'S STRUCTURALLY GOING ON. AND SO THAT'S CAUSING MAJOR METROS TO SAY, HOW CAN WE USE THESE TOOLS OVER HERE TO, TO DEAL WITH THIS ISSUE AND START PULLING THOSE ELEMENTS TOGETHER. THAT'S WHY YOU'RE NOT SEEING, HEY, HERE'S A TRIED AND TRUE PROGRAM. IF YOU DO THIS PROGRAM, IT KIND OF, IT'LL WORK OUT BECAUSE THE TOOLS THAT WE'RE LOOKING AT AND HOW WE'RE TRYING TO HAVE THAT BALANCE IN TERMS OF EFFECTIVENESS AND SECURING JOBS, BUT STILL HAVING AN IMPACT, UM, IS REALLY THE NET NEW HERE. AND SO THERE IS SOME, THERE'S SOME EXAMPLES, BUT THERE, THERE ISN'T ONE THAT WE'VE BEEN ABLE TO IDENTIFY TO SAY, THIS PROGRAM HAS BEEN WORKING FOR 10 YEARS IN THIS PARTICULAR COMMUNITY. THEY DO THEIR TAX ABATEMENTS JUST SHOW, JUST SO THAT THEY'RE ABLE TO FURTHER THE, THE, UH, THE GAME FOR EVERYBODY. LET ME ADD TO THAT, UM, BECAUSE I THINK ANOTHER QUESTION THAT I'LL BE ASKING IS, IS IT WORKING FOR US, RIGHT, REGARDLESS OF WHAT IT'S DOING FOR ANOTHER COMMUNITY, OR HOW WE'RE COMPARING IT TO, SO FROM A PROGRAMMATIC STANDPOINT, WE ARE ABLE TO TRACK PROGRAMMATICALLY, UH, METRICS, JOB CREATION, UH, PRIVATE SECTOR, LEVERAGE, UH, TARGETED INDUSTRY PROJECTS, AND WE'LL BE ABLE TO COMPARE HOW WE'VE DONE IN THE PAST TO HOW WE'RE DOING NOW. SO FROM A PROGRAMMATIC STANDPOINT, THE METRICS THAT JENNA WAS TALKING ABOUT, THOSE KPIS, WE HAVE, YOU KNOW, TONS OF DATA ON OUR SUCCESS, UH, SO FAR. SO IMPLEMENTING THIS POLICY REALLY WILL BE ABLE TO BE COMPARED TO THAT. LIKE I SAID, WE'VE DONE TWO OR THREE A YEAR. IF ALL OF A SUDDEN WE DO ZERO, THERE'S GONNA BE A RED FLAG GOING ON. IF ALL OF A SUDDEN I'M PRESENTING TO YOU ALL PROJECTS THAT WE'RE VYING FOR AND NOT SECURING, THAT'S A PROBLEM. WE SHOULD BE ABLE TO ANSWER THAT. SO FROM A SUCCESS STANDPOINT, WE ARE GONNA GET INSTANT FEEDBACK ON HOW WE'RE DOING IN TERMS OF SECURING JOBS. RIGHT? OKAY. AND, AND SO THAT MAKES ME FEEL REALLY GOOD, RIGHT? SO THAT THIS IS NOT A PROGRAM WE'RE JUST PUTTING OUT THERE AND THEN HOPE IT WORKS. WE'RE, WE'RE DOING THAT WHOLE PLAN, DO CHECK ACTION 360 PROCESS, UM, REAL TIME. EVERY TIME WE DO A DEAL, REAL TIME, WE, WE HAVE METRICS AS A MATTER OF FACT, PARTNER 24 7 REPORT. THE METRICS I REPORT TO Y'ALL IS BOTH JOBS AND INVESTMENT. SO WE TRACK THIS, JENNA TRACKS THIS. IT'S PART OF BOTH OUR KPIS. YEAH. BECAUSE MY FEAR, JENNA, IS THAT, YOU KNOW, I MEAN, EVERY CITY, EVERY COUNTY NOW HAS AN E D F, RIGHT? OR, AND YOU KNOW, SOME VERSION OF IT, RIGHT? AND WE'VE LOST DEALS TO VICTORIA, RIGHT? AND WE'VE LOST DEALS TO GUADALUPE COUNTY AND SHIRTS AND SA WELL, THAT WAS JENNA'S FAULT. YEAH, . BUT I MEAN, IT, THEY HAPPENED, RIGHT? AND I'M SURE WE STILL LOSE DEALS AND WE, WE LOSE 'EM FOR WHATEVER REASONS, RIGHT? BUT THE LAST THING I WANT IS TO HAVE YOU IN A ROOM WITH A DECISION MAKER AND THAT, AND THEM TELL YOU, HEY, JENNA, LOOK, YOUR PROGRAM IS REALLY WELL INTENTIONED. WE THINK THIS IS AWESOME, BUT REALLY SPEND 50% OF OUR INCENTIVES ON YOUR EQUITY PROGRAMS, GUADALUPE'S NOT MAKING US DO THAT. WE'D RATHER GO OVER THERE. AND SO THEN, YOU KNOW, CAT OR AMAZON GO OVER THERE, RIGHT? AND I KNOW WHAT YOU SAID, WHICH IS THERE'S CERTAIN COMPANIES WE WANT TO DO BUSINESS WITH AND OTHERS THAT DON'T ALIGN WITH THOSE VALUES. WE DON'T WANT TO. THAT'S, THAT'S FINE. THE OTHER, I THINK VERY CLEVER THING THAT WE'VE BEEN DOING IS, AND YOU'VE BEEN SEEING THIS REAL TIME FIRSTHAND, IF YOU NOTICE THOSE FIVE DIFFERENT CHOICES. YEAH. AND, AND WE BEGAN THIS EFFORT A YEAR AGO. I'VE BEEN NEGOTIATING THOSE INTO RECENT CONTRACTS THAT WE'VE TAKEN TO COUNCIL FOR THAT VERY REASON, RIGHT? WHERE IS THAT OUTER BOUNDS? WHERE CAN WE REALLY PUSH, WHERE DO WE HAVE SHARED VALUES WITH THOSE COMPANIES? AND WHAT YOU SEE REPRESENTED BEFORE YOU ARE THOSE EXACT THINGS, THOSE THINGS THAT COMPANIES ARE SAYING, HEY, I'LL DO THAT. COMMERCIAL RECYCLING, AS FAR AS BEING A GOOD CORPORATE ASSISTANT, YES. EMPLOYEE ASSISTANT PROGRAM. WE OFFER THAT NOW. YES. UM, PAID INTERNSHIPS, BIG ONE. THAT'S THE ONE I'VE BEEN PUSHING A LOT LATELY. YES. MM-HMM. . SO BY DESIGN, WE'VE NOT ONLY BEEN TESTING THIS, BUT ALSO ALIGNING IT WITH THE, UH, SA TOMORROW GOALS. YEAH. OKAY. AND THEN LASTLY, UM, YOU KNOW, I THINK IT WAS THE FIFTH BULLET POINT ON SLIDE, WHATEVER THAT MR. PERRY WANTED TO LOOK AT WAS WHERE THE SITE SELECTOR SAID, YOU KNOW, WHAT'S IMPORTANT TO US IS THAT WE LIFT THE BURDEN OF REGULATION AND YOU MAKE IT A LITTLE EASIER FOR US TO DO BUSINESS. RIGHT? UM, AND THEN YOU SAID, YOU KNOW, RENEE AND HIS DEPARTMENT ARE BEING VERY CAREFUL TO MAKE SURE THAT THIS DOESN'T IMPEDE RIGHT. THEIR ABILITY TO [01:30:01] THRIVE AND SUCCEED. I, I BELIEVE THAT TO BE TRUE. MY CONCERN IS, IS ARE WE WORKING JUST AS HARD AT LOOKING AT EXISTING REGULATIONS AND LIGHTENING THAT BURDEN? BECAUSE THE, WHAT THE BUSINESS COMMUNITY KEEPS TELLING US OVER AND OVER AGAIN IS THAT IT'S, IT'S HARD ENOUGH ALREADY, RIGHT? DON'T WORRY ABOUT ADDING NEW ONES, THE ONES YOU'VE ALREADY GOT IN PLACE HURT ENOUGH. RIGHT? SO TALK TO ME ABOUT THAT. UM, AND WE WON'T BELABOR IT, BUT THE, THE PERSPECTIVE, THE CUSTOMER PERSPECTIVE SURVEY THAT JENNA MENTIONED EARLIER IS CAPTURING A LOT OF THAT. IN ADDITION TO THAT, WE ARE INTRODUCING, UH, ANOTHER PROGRAM, THE FEE WAIVER PROGRAM. THE BUSINESS FEE WAIVER PROGRAM. AND NOW WE ARE ATTACHING OUR SMALL BUSINESS LIAISON SPECIFICALLY TO THOSE DEVELOPMENT PROCESSES, BASICALLY WALKING HAND IN HAND WITH SMALL BUSINESSES THAT WANNA EXPAND TO REALLY EXPERIENCE WHAT THAT IS LIKE IN TERMS OF DEVELOPMENT. AND ONE OF THE MAIN GOALS WE DID, ONE OF THE MAIN REASONS WE DID THAT WAS TO GATHER INFORMATION ON WHERE ARE OUR BUSINESSES ENCOUNTERING THOSE BARRIERS? WHAT IS FRUSTRATING THEM TO WHERE THEY'RE SAYING DEVELOPMENT AND EXPANSION IS HARD. SO NOT ONLY IS JENNA CAPTURING THAT INFORMATION, BUT NOW THROUGH OUR SMALL BUSINESS LIAISON, OUR FEED WAIVER PROGRAM, WE'RE EMBEDDING AN ACTUAL EMPLOYEE WITH THOSE EXPANSIONS TO EXPERIENCE THAT FIRSTHAND, TO GATHER THAT DATA. I AM IN SUPPORT. THANKS GUYS. THANK YOU, MAYOR. THANK YOU. COUNCILMAN FLIES. COUNCILMAN GONZALEZ. THANK YOU. THANK YOU. THE PRESENTATION. UH, SO WE'VE HEARD IT A COUPLE OF TIMES, AND I GUESS, YOU KNOW, SO I WANT, I DON'T HAVE TOO MANY QUESTIONS, BUT, UM, I DO HAVE A QUESTION ABOUT THE UPSKILL PARTNERS. UM, YOU KNOW, MY SENSE NOW, HAVING WORKED WITH A LOT OF OUR NONPROFITS, MANY, BECAUSE SO MANY ARE IN MY DISTRICT, IS THAT IF A, IF A COMMUNITY MEMBER IS ATTACHED TO A NONPROFIT, ALMOST ANYONE THAT'S GOOD, UH, OR SORT OF THE ONES THAT WE HEAR OF, LIKE FAMILY SERVICES OR QUEST, OR THE Y M C A, YW GOODWILL, UM, THE GOOD SAMARITAN, SAY C ANY OF THEM, THEY HAVE PRETTY GOOD OUTCOMES. UM, IT'S THOSE THAT ARE NOT CONNECTED TO ANY NONPROFIT OR ANY SERVICES. AND WHY I THINK WE NEED TO FOCUS MORE OF OUR ATTENTION IN THE COMING YEARS ON DE DEDICATING MORE FUNDING TO OUR DELEGATE AGENCIES. I THINK THIS IS WHAT REALLY WILL HELP US. SO DO YOU HAVE SOME IDEA OF HOW MANY PEOPLE WILL GO THROUGH THE UPSKILL PARTNER? BECAUSE MY SENSE IS THAT ONCE THEY'RE ALREADY ATTACHED TO ONE, THEY DO PRETTY WELL. WELL, WE DO. THERE'S AROUND 4,000 PARTICIPANTS. IT'S FUNNY, I WAS LAUGHING. ADRIAN HAD A SLIDE ON SORT OF THE FLOW OF PARTICIPANTS TIMES TWO SKILLED, UH, PROJECTS. BUT DO YOU HAVE ANY OF THAT DATA ON WHAT WE ANTICIPATE IN TERMS OF OUTCOMES? SO WHEN WE TALK ABOUT OUTCOMES, COUNCILWOMAN, WHAT WE'RE TRYING TO DO IS ALSO REFRAME HOW WE LOOK AT PROGRESS ON A YEAR BY YEAR BASIS. SO YOU MAY HAVE SOMEBODY WHO, UH, LEARNS TO READ, AND THAT'S DEFINITELY PROGRESS, BUT WE WANNA START MEASURING IS HOW MANY FOLKS CAN ACTUALLY MAKE THAT NEXT JUMP AND GET TO SOME G E D TRAINING. AND SO, UM, ROUGHLY, YOU KNOW, DEPENDING ON WHAT OUTCOME YOU'RE TALKING ABOUT, EACH ONE OF THE DIFFERENT DELEGATE AGENCIES HAS DIFFERENT OUTCOMES. UH, IF THEY'RE SERVING 4,000, UM, UH, YOU HAVE TO ZERO IN ON WHAT OUTCOME WE'RE LOOKING FOR WHEN WE SAY, YOU KNOW, HOW MANY FOLKS WOULD BE SERVED, PROBABLY ABOUT 4,000, 1800 MOST LIKELY IN THE SYSTEM THAT WE COULD VALIDATE AND LOOK AT FOR PROGRESS. UM, AND THEN EACH INDIVIDUAL DELEGATE AGENCY WOULD HAVE, UM, METRICS THAT, UH, THEY WOULD BE LOOKING TO HIT. I HAVE MY WORKFORCE DEVELOPMENT, UH, MY, MY STAFF TEAM HERE. IS THERE A SPECIFIC NUMBER IN TERMS OF THE TOTAL NUMBER THAT WOULD GO THROUGH? SO I'M RIGHT. I'M SURE EACH, EACH, UH, AGENCY KNOWS HOW MANY PEOPLE THEY SERVE MM-HMM. , UM, AND, YOU KNOW, OF COURSE IF IT'S A FAMILY AND THEIR CHILDREN, YOU KNOW, THEY'RE JUST TRYING TO ADVANCE TO THE NEXT GRADE LEVEL. BUT WE KNOW THAT IF OUR KIDS WILL STAY ON GRADE LEVEL, UH, THAT THEY WILL EVENTUALLY, UM, YOU KNOW, ADVANCE TO MORE SKILLED WORK. THEY'RE ALREADY CONNECTED TO AN AGENCY, SO THEY'LL GET THE WORK THERE, UH, OR THE SERVICES OR, UH, THAT'S THE IDEA ANYWAY. UM, IF THEY CONTINUE TO STAY IN THE PROGRAM, IT'S ONCE THEY DROP OUT OF THE PROGRAM THAT WE HAVE ALL THESE NEGATIVE OUTCOMES. SO, I, I DON'T, YOU KNOW, FAN FAMILY SERVICES ASSOCIATION IS VERY LARGE, UH, IN AND BROAD, UH, IN TERMS OF WHAT THEY SERVE. BUT I MEAN, I GUESS, IS THERE ANY WAY TO, BECAUSE 1800 SOUNDS LIKE A REALLY SMALL NUMBER WHEN WE'RE TALKING ABOUT THE WORKFORCE THAT WE NEED, UH, TO JUST SUPPLY, RIGHT? AND KEEP IN MIND, THE FRAMEWORK ON THE UPSKILL NETWORK IS TO HIRE A PERCENTAGE FROM THE ENTIRE INCLUSIVE GROWTH AREA. THOSE AREAS, TIER ONE AND TIER TWO, OR THIS NETWORK, THIS IS MEANT TO JUST BE ANOTHER TOOL IN THAT TOOLBOX IN TERMS OF ACCESSING THE MOST DISTRESSED IN OUR COMMUNITY, OR THE WATC POPULATION, [01:35:01] WHICH INCLUDES VETERANS AND THE INCARCERATED. SO IT'S GONNA BE REALLY A COMBINATION OF ALL OF THOSE THINGS. THE VALUE OF THE UPSKILL NETWORK IS REALLY HAVING THEM COME ON SITE AND PROVIDING WRAPAROUND SERVICES AND THE SKILLS DEVELOPMENT WITH THE EMPLOYEES. AND TO BE HONEST WITH YOU, THIS IS A PILOT. DO WE KNOW THAT COMPANIES ARE GOING TO SAY, YES, WE'RE GONNA LET YOU COME ONSITE AND DO THAT? WE DON'T KNOW. WHAT WE'RE SAYING IS THROUGH THIS POLICY, ARE THERE PROJECTS OUT THERE THAT ARE WILLING TO PARTNERS TO HAVE THAT CONVERSATION? AND THEN ONCE WE DO HAVE IT, IT'S A, NOT A RISK, BUT IT'S GONNA BE DEFINITELY A CHALLENGE FOR US TO MAKE THIS ALL WORK, TO WORK WITH THE COMPANY, TO HIRE THOSE POPULATIONS, TO GET THEM TO ENROLL IN THIS AND TO GET THEM TO HAND OFF. SO WE'RE REALLY LOOKING TO PILOT THIS FOR THE NEXT TWO YEARS TO DETERMINE THOSE OUTCOMES. SO, I, I, I, YOU KNOW, I UNDERSTAND THAT THEY'RE A PILOT, AND I THINK THAT'S REALLY IMPORTANT BECAUSE WE DO HAVE TO TRY THINGS, RIGHT? TO SEE IF THEY ARE, WILL BE SUCCESSFUL OR NOT. UM, BUT DO YOU HAVE A LARGE ENOUGH SAMPLE? BECAUSE IF YOU'RE TALKING ABOUT POTENTIALLY TWO A YEAR, THAT'S ASSUMING THAT, RIGHT? LIKE EVERYTHING GOES AS PLANNED. YOU GET TWO A YEAR. I MEAN, IS THAT SUFFICIENT TO SAY THAT THIS MODEL'S SUCCESSFUL? SO THE REASON THAT WE'RE LOOKING AT TWO A YEAR IS BECAUSE IT CERTAINLY IS A CAPACITY ISSUE WITH THE NONPROFITS AS WELL. SO AS RENEE'S POINTING OUT, WE DON'T KNOW WHAT WE DON'T KNOW. AND SO WE WANT TO DO IS FIND THE OUTER BOUNDS OF WHAT EMPLOYERS ARE WILLING TO PARTNER WITH US ON. UH, ADDITIONALLY, TO GO BACK TO YOUR PREVIOUS QUESTION, COUNCILWOMAN, WHAT WE WANNA DO IS WITH, WITH THE NONPROFITS, ALSO LOOK AT WHEN WE SAY OUTCOMES, WHAT ARE WE MEASURING? WHAT DO WE CONSIDER MEANINGFUL? WHAT WE'RE TRYING TO DO IS CHANGE THE NARRATIVE TO SAY IT'S MEANINGFUL BASED ON WHERE THAT PERSON IS STARTING. AND SO, UH, WHILE THE END GOAL IS THAT THEY GET A, A, A LIFE SUSTAINING JOB, AND THEY'RE, THEY'RE SELF-SUFFICIENT, WE WANNA ALSO CELEBRATE WHEN SOMEBODY MOVES FROM ONE MILESTONE TO THE NEXT AND FOCUS ON WHERE THOSE BOTTLENECKS ARE. BECAUSE THAT'S WHAT WE'RE SEEING IS A, THERE'S A LOT OF FOLKS AT THE FRONT END OF THAT, UH, PATHWAY AND, AND THE JOBS THAT WE'RE, WE'RE TALKING ABOUT OR MAYBE OUT OF REACH. AND SO WE'RE TRYING TO CELEBRATE EACH ONE OF THOSE ELEMENTS. UM, SO, SO, SO THAT WOULD BE, WOULD BE KIND OF THE, THE FOCUS FOR THE, THE U P N AND TWO WOULD BE A VICTORY. KEEP IN MIND, ON AVERAGE IN THE LAST 10 YEARS, WE'VE ONLY DONE TWO TO THREE PROJECTS IN TOTAL, INCLUDING THE TARGETED INDUSTRY PROJECTS. SO, YEAH, UH, I DON'T KNOW. THIS IS NET NEW INVESTMENT. LET'S, UH, PROVIDE A LITTLE BIT MORE CONTEXT FROM AN ABATEMENT STANDPOINT. WE CAN'T ABATE TAXES THAT ARE ALREADY ON THE ROLLS. THIS IS A COMPANY COMING IN, IN, IN A COMPETITIVE SETTING AND, UH, ASKING US TO ABATE TAXES, OF WHICH WE DO TWO OR THREE A YEAR. SO I, I HOPE WE GET AT LEAST TWO. UM, THAT WOULD BE GREAT, BECAUSE WE ONLY DO TWO OR THREE OF THESE. AND TO BE HONEST WITH YOU, WE'RE NOT GONNA LOSE OUR FOCUS ON TARGETED INDUSTRIES TO BEGIN WITH. THOSE ARE PRIORITY PROJECTS. SO IT'S GONNA BE A REAL, YOU KNOW, EXPERIMENT THIS NEXT YEAR ON HOW MANY PROJECTS. NOW I WILL SAY IN THE PIPELINE, DO WE HAVE A PROJECT THAT MEETS THIS PROFILE? WE CURRENTLY HAVE A PROJECT THAT MEETS THIS PROFILE, SO WE KNOW THEY EXIST. OKAY. WELL, WE'RE, UM, YOU KNOW, I WOULD LOOK FORWARD TO THAT BECAUSE I, I, I AM CONCERNED THAT IT'S GONNA TAKE TOO LONG TO, UM, REALLY GET THE RESULT THAT WE'RE AFTER AND WE'RE ALREADY FALLING FURTHER AND FURTHER BEHIND. UH, WE AS A CITY CONTINUE TO FALL BEHIND IN OUR OPPORTUNITY YOUTH. WE CONTINUE TO FALL BEHIND IN, UH, I THINK WORKFORCE DEVELOPMENT, AT LEAST THAT'S, YOU KNOW, SOME OF THE NUMBERS THAT WE'RE SEEING. WE CONTINUE TO BE MORE POOR. WE CONTINUE TO FALL BEHIND IN EDUCATIONAL ATTAINMENT IN SOME AREAS OF THE CITY. AND, YOU KNOW, THE, THE INEQUALITY, UH, IN SEGREGATION CONTINUES. SO, UH, INCOME SEGREGATION CONTINUES. SO I, I, I, I'M JUST CONCERNED THAT IT'S NOT GONNA BE FAST ENOUGH, UH, TO REVERSE THE TREND. SO I LOOK FORWARD TO, YOU KNOW, CONTINUING THE FEEDBACK. UM, AND I MEAN, I RECOGNIZE, YOU KNOW, THIS HAPPENED OVER A PERIOD OF TIME. IT WAS AN IMMEDIATE, I MEAN, IT'S TAKEN A LOT OF YEARS FOR US TO BE THE, YOU KNOW, LARGEST INCOME SEGREGATED CITY IN THE COUNTRY. BUT, UM, AT THE SAME TIME, I FEEL LIKE WE NEED TO MOVE QUICKER TO RESOLVE IT. AND SO I RECOGNIZE THIS IS JUST ONE PART OF MANY THINGS THAT WE HAVE TO DEAL WITH AS A CITY. UM, BUT I THINK IT COULD START HERE WITH MORE FUNDING TO DELEGATE AGENCIES, UH, AND, UM, ATTENTION TO WORKFORCE, UH, AS WE MOVE FORWARD. SO, THANK YOU. UH, THANK YOU, MAYOR. THANK YOU. COUNCILMAN GONZALEZ. COUNCILMAN CURRY. THANK YOU, MAYOR. I THINK YOU'VE DONE A, A, A PRETTY THOROUGH JOB OF, UH, EXPLAINING EVERYTHING. I HAD A PROBABLY FOUR OR FIVE QUESTIONS, BUT WE'VE GONE THROUGH MOST OF 'EM. BUT LET'S GO BACK TO SLIDE 13, AND I WANT HAVE AN [01:40:01] EXPLANATION, UH, ON, UH, UM, ON ITEM NUMBER TWO, PRIORITY NUMBER TWO, HIGH WAGES, 50,000 OR MORE, WHAT PERCENTAGE DO WE REQUIRE TO MEET THAT PRIORITY? 45, 30%, 30%. OKAY. AND THEN GO AHEAD. AT A MINIMUM. OKAY. AND THEN, UH, FOR NUMBER THREE, I, I WAS OUT OF THE ROOM, AND I KNOW YOU TALKED A LITTLE BIT ABOUT INTERNSHIPS. WHAT, UH, COULD YOU EXPLAIN WHAT ALL THE INGREDIENTS ARE OR COULD BE IN PRIORITY NUMBER THREE? CERTAINLY. SO PRIMARILY, UM, WE ARE LOOKING FOR THE COMPANY TO AGREE TO, UH, INVEST 5% OF THEIR ABATEMENT VALUE IN PAID INTERNSHIPS, WHICH EACH YEAR, UH, FOR THE LIFE OF THE AGREEMENT, RIGHT? OKAY. SO THE 5% IS REALLY JUST A STARTING POINT TO, TO GET TO A DOLLAR FIGURE THAT WE CAN MONITOR AGAINST. UH, WHAT WE'VE SEEN IS MOST COMPANIES INVEST FAR MORE THAN THAT OVER A LONGER PERIOD OF TIME. MM-HMM. , UH, BUT THIS IS REALLY TO, TO HAVE A CONVERSATION ABOUT, HERE IS A TANGIBLE DOLLAR AMOUNT WE CAN MONITOR AGAINST ON PAID INTERNSHIPS. WE WANNA CONNECT THEM TO PARTNERS LIKE SA WORKS, UH, OUR OWN AMBASSADORS PROGRAM, UM, AND, AND HAVE THOSE INTERNSHIPS BE PAID. AND SO REALLY COMMITTING TO DEVELOPING THAT WORKFORCE PIPELINE AND GETTING THEM ORIENTED TO WORKFORCE PARTNERS LIKE SA WORKS AND THAT THIS IS A, A STRONG VALUE THAT WE HAVE HERE IN SAN ANTONIO. WELL, THAT, THAT'S WHAT I WANTED TO DO. THE SECOND ASPECT OF THIS, COUNCILMAN, THE CONTINUING EDUCATION SUPPORT. I DON'T KNOW IF YOU'VE HEARD OF UPGRADE, WE ACTUALLY HAVE IT HERE AT THE CITY, AND THAT'S KIND OF LIKE YOUR, YOUR, UM, HEALTH COACH. BUT IN TERMS OF, UM, PROVIDING ADDITIONAL SUPPORT AROUND UPSKILLING, AND SO THE MONEY COULD BE USED FOR PAID INTERNSHIPS OR PROMOTING THE IDEA OF BRINGING SOMEONE ON SITE TO ALSO HELP MENTOR INDIVIDUALS WHO'VE HAD, UM, SOME EXPOSURE TO, UM, HIGHER EDUCATION, PERHAPS STOP, BUT NEEDS TO CREATE THAT PATHWAY. SO THERE'S A COUPLE OF ELEMENTS. THE ONLY OTHER CORRECTION, IT IT'S NOT FOR THE LIFE OF THE AGREEMENT RIGHT NOW, IT'S, IT'S CURRENTLY, UH, WRITTEN, IS WE'RE CONSIDERING THEM ENSURED THAT THOSE PAID INTERNSHIPS ARE IN PLACE FOR FIVE YEARS. ONLY FIVE. YES. BUT THEY CAN GET THE TAX ABATEMENT FOR 10. THAT'S RIGHT. AND THEY ONLY HAVE TO PROVIDE THE MINIMUM IN ORDER TO GET THAT. YES. THAT'S WHAT WE'RE CURRENTLY PROPOSING. NOW WHAT WE'VE FOUND IS COMPANIES ESTABLISHING PAID INTERNSHIPS, KEEP THOSE INTERNSHIPS FAR. I MEAN, FOR, FOR THE, I MEAN, THAT'S A ESSENTIAL PART OF DEVELOPING A COMPANY'S WORK PIPELINE RIGHT NOW. WE SEE COMPANIES HAVING, UH, LONGSTANDING PAID INTERNSHIP PROGRAMS ALREADY IN PLACE. WELL, I'D SURE LIKE TO SEE US ASK THEM TO MAKE IT FOR THE LIFE OF THE CONTRACT, AND THEN IF THEY PUSH BACK, SAY, WELL, MAYBE WE CAN DO IT FOR HALF THE LIFE OF THE CONTRACT. I MEAN, YOU KNOW, I LIKE TO BARGAIN AND I THINK THAT WE NEED TO BARGAIN FROM A STRONGER POSITION WHEN IT COMES TO SAYING HOW LONG WE, WE EXPECT THEM. THE, UH, OTHER THING IS, AND I THINK YOU'VE TOUCHED ON THAT, AND IT GOES ALONG WITH, UH, WHAT COUNCILWOMAN GONZALEZ JUST SAID, YOU KNOW, WE NEED TO HAVE EDUCATION SUPPORT AND WORKFORCE DEVELOPMENT. AND SO I SEE YOU HAVE CONTINUED EDUCATION SUPPORT. FOR EXAMPLE, IF SOMEBODY WANTED TO, UH, GO TO COLLEGE, GO TO SAC, GET CERTIFIED IN A CERTAIN AREA, THEY COULD PAY FOR THAT. UH, AND THAT WOULD BE PART OF MEETING THAT REQUIREMENT. CURRENTLY, WE WEREN'T CONSIDERING THAT. WE ARE CONSIDERING PERHAPS SOMETHING LIKE THE UPGRADE PROGRAM BEING PUT IN PLACE, BUT WE'RE LOOKING FOR FEEDBACK. UM, SO IN TERMS OF A CHOICE, PAID INTERNSHIPS, OR IF THEY DON'T HAVE AN EMPLOYEE REIMBURSEMENT PROGRAM, WOULD THEY CREATE THAT? WE'RE ABSOLUTELY OPENING, ADDING THAT TO THE LIST. MM-HMM. AND, UM, WORKFORCE DEVELOPMENT. UH, WHAT ABOUT JUST MAKING A, A 5% CONTRIBUTION TO ONE OF THE WORKFORCE DEVELOPMENT GROUPS LIKE QUEST OR SOMETHING, UH, SO THAT WE'RE STILL GETTING THE SAME KIND OF FINANCIAL INPUT, BUT MAYBE AT CERTAIN TIMES IT WOULD FIT INTO CERTAIN AREAS MORE BENEFICIALLY, YOU KNOW, TO THOSE ORGANIZATIONS. SO I JUST WANTED TO THINK ABOUT THOSE TWO. OTHERWISE, YOU KNOW, YOU, YOU'VE PRETTY MUCH CONVINCE ME THAT, UH, THIS IS A PROGRAM THAT WE OUGHT TO BE SUPPORTING WHEN IT COMES TO COUNCIL. SO THANK YOU. THANK YOU. COUNCILMAN CUR, COUNCILMAN BROCK HOUSE. THANK YOU, MAYOR. UH, WE TALKED, WE MET YESTERDAY ON THIS VERY APPRECIATIVE OF THE WORK, UH, AND YOU'VE BEEN KEEPING ME INFORMED AND IN THE TEAM, AND IT'S, UH, IT'S REALLY MADE A LOT OF PROGRESS. I WANTED TO THANK YOU FOR THE WORK. UH, AND MY POINT, I JUST WANTED TO MAKE, JUST KIND OF REITERATE SOMETHING I SAID YESTERDAY, UM, WHEN WE START TO, AND IT'S A FINE LINE, IT'S A DIFFICULT CONVERSATION TO HAVE, BUT I THINK WE, I THINK WE HAVE TO HAVE IT, WHICH IS WHEN YOU START TALKING ABOUT POLICING YOUR VALUES INTO THE BUSINESS COMMUNITY, ARE YOU WALKING A VERY FINE LINE? BECAUSE VALUES ARE A TOUGH THING TO MEASURE. UH, THEY'RE A TOUGH THING TO HOLD SOMEONE ELSE ACCOUNTABLE FOR, ESPECIALLY WHEN IT'S IN AN OUTSIDE THIRD PARTY [01:45:01] BUSINESS, UH, THAT IS BRINGING VALUE TO THE COMMUNITY. UH, ONE OF MY COLLEAGUES MENTIONED MAHAN, RIGHT? I GET THAT THAT MAYBE IS NOT A JOB THAT THAT COLLEAGUE THINKS IS A GOOD JOB BECAUSE OF THE PAY OR WHATEVER. BUT JOBS PERIOD FILL SOME LEVEL OF READINESS, EMPLOYEE READINESS ACROSS OUR COMMUNITY. I DON'T DISPUTE THE FACT, IN FACT, WE NEED TO GET IN THERE. AND YOUR PLAN, WHAT I REALLY LIKED WAS THE UPSKILLING WORKING IN ALL THE WAY UP THE, THE CHART UP TO PROJECT QUEST, RIGHT? THAT ACCOUNTABILITY THAT THE MONEY WE'RE PUTTING IN ENDS UP GROWING A PERSON TO A HIGHER LEVEL OF PAY AND EMPLOYMENT. THAT'S, THAT'S EXACTLY WHERE WE SHOULD BE. BUT WE SHOULDN'T LOOK DOWN. YOU GOTTA BE VERY CAREFUL NOT TO LOOK DOWN ON THAT ENTRY LEVEL WAGE JOB. I LOVE MY SON. HE'S A GREAT GUY, 20 YEARS OLD. HE DOESN'T NEED TO BE MAKING THE LIVING WAGE. HE DOESN'T NEED TO BE MAKING 1250 OR 15 BUCKS, 1250, PERHAPS 15, 16 BUCKS AN HOUR. NO, DOESN'T HAVE THE SKILL SET YET TO GET THERE, BUT HE WILL BUILD THAT OVER TIME. SO MY ONLY CAUTION IS, UM, THIS DRIVE FOR VALUES AND, AND WHO WE ARE AND HOW WE PUSH ALSO SENDS A MESSAGE THAT IS VERY TOUGH FOR A BUSINESS LOOKING AT SAN ANTONIO OR SOMEONE LOOKING TO STAY, TO MEASURE UP TO WHAT THE CITY MAY OR MAY NOT BELIEVE. AND, AND THAT IS A, JUST A, IS AN UNREALISTIC CHARACTERISTIC TO ME. I CAN SEE US PUTTING OUR VALUES, I SUPPOSE, IN OUR BUDGET, BUT WHEN WE ATTEMPT TO PLACE THOSE ON ANOTHER COMPANY, I THINK WE'RE WALKING A VERY FINE LINE. WE DON'T WANNA SCARE PEOPLE AWAY BECAUSE WE DON'T KNOW IF OUR VALUES CHANGE FROM ADMINISTRATION, ADMINISTRATION FROM COUNCIL DISTRICT TO COUNCIL DISTRICT. IT, IT DOESN'T, IT SHOULDN'T WORK AS THAT AS THE PRIMARY GOAL. I THINK COUNCILMAN PIUS HIT THE NAIL ON THE HEAD WHEN HE SAID, ARE WE GETTING OUR MONEY BACK FOR WHAT WE'RE INVESTING? ARE WE LOSING, UM, SOMETIMES IN A LOT OF OPERATIONS AND FLOWS, IT'S JUST NOT ENOUGH TO SAY, HEY, WE DON'T, WE'RE NOT LOSING. THAT'S NOT A GAME PLAN EITHER. UM, AND YOU KNOW, THERE ARE KEY POINTS THAT, UH, YOU KNOW, COUNCILMAN COURAGE HAS MADE ABOUT, YOU KNOW, THEY'RE GETTING, THEY'RE RECEIVING THEIR TIME PERIOD FIVE, YOU KNOW, FIVE YEARS OF IN PAID INTERNSHIPS, BUT THEY'RE GETTING 10 YEARS OF ABATEMENTS. I MEAN, THESE THINGS ARE GOOD CONVERSATIONS TO HAVE THAT I THINK YOU'LL TWEAK OVER TIME. UM, BUT AS WE DISCUSSED YESTERDAY, I JUST WANTED TO MAKE IT, JUST PUT A PLUG OUT THERE. LET'S NOT GET TOO HOLIER THAN THOU WITH THE JOB THAT COMES DOWN THE ROAD. JOB'S A JOB. AND OUR GOAL IS TO HELP EDUCATE OUR WORKFORCE AND DRIVE THAT UP, NOT TO FORCE EMPLOYERS TO LITERALLY PAY MORE MONEY, UH, TO CLOSE THAT GAP FROM A, FROM A WORKER WHO NEEDS, AND REMEMBER, THESE ARE A LOT OF TIMES PART-TIMERS. THEY'RE SEASONAL EMPLOYEES. THERE ARE A LOT OF FOLKS THAT ARE, ARE FILING INTO THIS, UH, UNEMPLOYMENT MIX. IT WAS MENTIONED WHEN IT'S 3.1 ACROSS THE CITY, THAT'S A PHENOMENAL UNEMPLOYMENT RATE. UH, IT WOULD BE GOOD FOR US TO SEE WHAT IT IS DISTRICT BY DISTRICT, PERHAPS CENSUS TRACK BY CENSUS TRACK OR PRECINCT BY PRECINCT, HOWEVER YOU WANNA LOOK AT IT. IT WOULD BE GOOD TO CONTINUE TO SEE THAT TYPE OF DATA. UM, BUT WE'RE DOING WELL. AND I THINK THAT 3.1% IS A REFLECTION ON YOUR TEAM. IT'S A REFLECTION ON JENNA AND HER TEAM AND WHAT WE'RE BRINGING INTO THE ORGANIZATION TO THE CITY. AND WHAT I LIKE TOO IS THAT YOU'RE GOING OUT THERE AND YOU'RE ASKING BUSINESS WHAT YOU THINK. THAT'S THE OTHER PROBLEM WITH VALUES . IT'S GOING OUT AND TELLING THE BUSINESS, THIS IS THE VALUE. WE'RE SENDING A MESSAGE THAT WE DON'T NECESSARILY, WE ARE LOOKING FOR THESE TYPES OF PEOPLE. THE REST OF YOU NEED NOT APPLY. THAT'S A SCARY CONVERSATION FROM A STANDPOINT OF WAGES AND ALL THOSE OTHER THINGS. SO I WOULD ASK JUST TO KIND OF KEEP THAT MIX IN THERE. ALWAYS THINK ABOUT OPENING THE DOOR TO BUSINESS AND OPPORTUNITY. THERE'S NO SUCH THING AS A BAD JOB, RIGHT? IT'S JUST MAYBE NOT WHERE ANY EMPLOYER OR PERSON WANTS TO BE, BUT SOME PEOPLE HAVE TO START SOMEWHERE IN THE EMPLOYMENT OPPORTUNITY. UH, AND I THINK IT'S ON US TO EDUCATE, PUT THE MONEY INTO THESE WORKFORCE TRAINING OPPORTUNITIES LIKE WE'RE DOING, AND REALLY DRIVE THAT UP AS WE CAN. I MEAN, PROJECT QUEST FOR ALL THEIR GOOD WORK, IT'S ABOUT 2000 PEOPLE, RIGHT? A YEAR. I THINK. IT'S NOT, WE'RE NOT IMPACTING A, A LARGE AMOUNT OF FOLKS THERE, BUT, SO WE NEED TO CONSIDER THOSE OPPORTUNITIES. AND I LIKE WHAT YOU'RE DOING WITH THE UPSKILLING. I THINK IT'S GREAT. I THINK THE, THE FEEDBACK YOU RECEIVED IS ON POINT. UM, YOUR PRESENTATION WAS SOLID. IT'S VERY THANKFUL FOR THE WORK YESTERDAY. IT'S NOT EVERYWHERE I'D WANT TO BE, BUT IT'S, I THINK IT CERTAINLY SPRINKLES IN A LITTLE BIT FROM WHAT I'VE HEARD OF THE DISCUSSION OVER THE LAST YEAR FROM ALL THE MEMBERS. IT'S GOT A LITTLE BIT OF WHAT I THOUGHT WAS INTERESTING IN THE C C R I WROTE RIGHT ON, ON THIS AT THE BEGINNING, RIGHT WHEN I, THE LAST YEAR OVER THAT CREDIT HUMAN ISSUE, THIS IS WHERE THIS CAME FROM, IS THAT THIS IS THIS, THESE THINGS AREN'T WORKING. THIS SPRINKLES A LITTLE BIT OF COUNCILMAN COURAGE, A LITTLE BIT OF EVERYBODY I THINK IS IN IT. SO I THINK WHAT YOU'VE ACCOMPLISHED IS A WELL-ROUNDED, GOOD STARTING POINT FOR A PILOT PROGRAM. AND I WANTED TO THANK YOU, JENNA, AND THE REST OF THE ORGANIZATION, UH, FOR LISTENING AND, AND, AND MAKING SURE EVERYBODY'S GOT A PIECE OF THIS LITTLE PUZZLE. SO WE LOOK FORWARD TO YOUR, UH, YOUR FOLLOW UP ON THIS OVER THE NEXT FEW MONTHS AND, AND, UM, MAKE SURE YOU'RE COMING BACK, REGULAR UPDATES TO THE COUNCIL SO WE CAN SEE HOW THIS IS WORKING. THANK YOU, MAYOR. THANK YOU. COUNCILMAN BROCKO. GREAT JOB, GUYS. UH, LOOK FORWARD TO SEEING THIS ON UNFOLD. MAYOR, CAN I ASK ONE MORE THING? COUNCILMAN? COURAGE, MAY I THANK YOU. YEP. UH, I, I DID, UH, JUST KIND OF WANNA REVIEW THAT. ON PAGE 13, WE TALKED ABOUT THESE INCENTIVES [01:50:01] AND OFFER, UH, PRIORITIES OFFERING OR SAYING THAT SOMEBODY NEEDED TO MEET TWO, UH, FOR 50% OR THREE FOR A HUNDRED PERCENT. AND I KNOW WE HAD TALKED ABOUT THIS BEFORE MM-HMM. , UH, WHAT ARE THE TARGETED INDUSTRIES THAT WE'RE GOING AFTER? WE HAVE FOUR TARGETED INDUSTRIES, HEALTHCARE AND BIOSCIENCES, IT AND CYBER ADVANCED MANUFACTURING, LIKE AEROSPACE AND NEW ENERGY. THOSE ARE THE EMERGING INDUSTRIES THAT ARE CREATING THE MOST MIDDLE SKILLS JOBS THAT PAY THE HIGHER WAGES, WHERE AT THE CURRENT TIME, WE HAVE A COMPETITIVE ADVANTAGE IN. YEAH. AND, AND I BELIEVE I HAD, I HAD MENTIONED THAT, YOU KNOW, IF THEY MEET TWO PRIORITIES, WELL, IF THEY'RE A TARGETED INDUSTRY, THEY'RE ALREADY MEETING ONE. AND SO THEY MIGHT JUST SAY, OKAY, WELL, WE'LL PICK NUMBER FIVE PARTNERSHIP OPTIONS AND LET'S SEE. OKAY, WE'LL DO, UM, ANNUAL FLU SHOTS AND, UH, WE WANT TO GO AHEAD AND PUT IN AN IRRIGATION SYSTEM, SO WE'LL LET, UH, SAWS DO THAT FOR US. SO THOSE ARE OUR TWO. SO WE'RE GONNA GET 50% ABATEMENT SIMPLY BECAUSE WE'RE A TARGETED AUDIENCE, UH, AND WE, WE DECIDE WE'RE GONNA DO A COUPLE LITTLE THINGS. OR MAYBE THEY SAID, OKAY, WE'LL DO THREE. AND THE OTHER ONE IS, UH, WE'LL DO INTERNSHIPS. WELL, ARE WE REALLY GETTING A GOOD VALUE RETURN FOR A HUNDRED PERCENT ABATEMENT WHEN REALLY THEY'RE DOING VERY LITTLE IN RETURN? UH, AND SO THAT'S WHY I HAD SUGGESTED THAT IF THEY'RE ALREADY A TARGETED INDUSTRY, YOU KNOW, THEY SHOULD BE STRIVING TO MEET THREE OTHER, UH, THREE OF THOSE, UH, OTHER FOUR. AND, AND ITEM NUMBER FIVE HAS MULTIPLE CHOICES, RIGHT? SO, YOU KNOW, THERE'S A LOT OF OPPORTUNITIES, UH, TO GET A LITTLE BIT MORE OUT OF A TARGET INDUSTRY THAN JUST SAYING, OKAY, WELL, WE'LL GO AHEAD AND DO INTERNSHIPS AND WE'LL DO A COUPLE OF OTHER LITTLE THINGS, AND WE'RE GETTING A 10% OF, I MEAN, A HUNDRED PERCENT OF PAYMENT FOR 10 YEARS. SO, YOU KNOW, THAT WAS SOMETHING THAT, UH, I HAD MENTIONED BEFORE, AND IT KIND OF GOES ALONG, I THINK WITH WHAT YOU WERE SAYING, UH, EARLY ON ABOUT, YOU KNOW, WHAT ARE WE ACTUALLY GETTING IN RETURN FROM THESE INDUSTRIES WHEN WE'RE GIVING SUCH A STRONG ABATEMENT? SO WE DID CONSIDER THAT WE HAD A LONG DEBATE INTERNALLY WITH STAFF ABOUT THIS, BECAUSE WE COULD JUST ELIMINATE THAT. THEN YOU IN ESSENCE, FIX THAT PROBLEM. YEAH, YOU COULD TAKE TARGET INDUSTRY OUT AND IT WOULD FIX THE PROBLEM. AND, AND WHERE WE LANDED, AND WE'RE LOOKING FOR FEEDBACK, HAPPY TO MEET WITH Y'ALL INDIVIDUALLY ON THIS IS WHERE WE LANDED. WHERE I LANDED WAS OUR FOCUS FOR THE LAST 10 YEARS HAVE BEEN ON GROWING TARGETED INDUSTRY TO BUILD OUT THAT CLUSTER AND CONTINUE THE MOMENTUM BECAUSE THEY PAY HIGH WAGES, THEY'RE COMPETITIVE, THEY REPRESENT MIDDLE SKILLS, JOBS, REAL OPPORTUNITIES FOR THAT UPSKILLING. AND IN ESSENCE, THE IDEA OF MAKING IT EASIER FOR THOSE COMPANIES. IN OTHER WORDS, COMPANIES WITHIN THE TARGETED INDUSTRIES, THE DOORS OPEN YOUR TICKET TO ENTRY IS A LITTLE EASIER. DOES THAT MEAN THAT THEY'RE GONNA DO LESS? I, I, I STRUGGLE WITH THAT. AND AT THE END OF THE DAY, WE DID RESEARCH ON THOSE TARGETED INDUSTRIES AND WHAT THEY'RE ACTUALLY DOING FOR US. AND I'M VERY CONFIDENT THAT ALTHOUGH IT MIGHT LOOK EASIER, WHAT THEY'RE BRINGING TO THE TABLE IS A LOT MORE. THESE ARE THE COMPANIES THAT HAVE VERY SIGNIFICANT HEALTH BENEFITS, THAT HAVE VERY SIGNIFICANT PAID INTERNSHIPS, THAT HAVE VERY SIGNIFICANT CULTURES THAT ENCOURAGE, UH, DIFFERENT, MORE INNOVATIVE TYPE OF WORKPLACES. SO IT, IT'S, UH, WE'RE MAKING A RECOMMENDATION. WE'RE BALANCING SORT OF THE EASE OF DOING BUSINESS AND WHAT WE WANT TO GO AFTER VERSUS, UM, KIND OF AGREEING TO DO ADDITIONAL, UH, PRIORITIES TO GET ADDITIONAL BENEFIT. SO, COUNCILMAN, I DON'T WANNA TO SAY WE DISMISSED THAT IDEA AT ALL. WE HAD A HEALTHY DISCUSSION AROUND IT. UH, I'D ALSO LIKE TO ADD THAT, UH, WHEN YOU CONSIDER THE ELIGIBILITY REQUIREMENTS AND THE AVERAGE PROJECT, THEY'RE ALSO BRINGING TO THE TABLE ON AVERAGE 400 JOBS AND $40 MILLION INVESTMENT, WHICH WE'RE COMPETING FOR. SO THAT'S WHAT WE'RE GETTING FOR THE TARGETED INDUSTRY PROJECT. UH, IN TERMS OF THE EXCHANGE, WE'RE WINNING THAT NET NEW INVESTMENT THAT AFTER THE ABATEMENT IS OVER, WE'LL CONTINUE TO, TO, YOU KNOW, PAY REVENUE. SO WHEN WE THINK ABOUT WHAT THEY'RE GIVING AND GETTING, LET'S NOT FORGET THAT WHAT'S BEING PROPOSED IS A NUMBER, HUNDREDS OF JOBS THAT WE'RE COMPETING FOR AND, AND TENS OF MILLIONS OF DOLLARS. THAT'S WHAT THEY'RE ALSO BRINGING TO THE TABLE. OKAY. I JUST WANTED TO KNOW IF YOU'D GIVEN IT MORE THOUGHT. ABSOLUTELY. PUT IT OUT. THE OTHER COUNCIL MEMBERS SAYING, THANK YOU, COUNCILMAN CURDS. AND, AND I WOULD JUST EMPHASIZE THAT, UH, THE LAST MAYBE 10 YEARS, BUT CERTAINLY IN THE LAST COUPLE OF YEARS, UM, SAN ANTONIO HAS PROVEN TO BE OPEN FOR BUSINESS. AND, AND THE ECONOMIC, UH, DEVELOPMENT AND MOMENTUM THAT'S BEEN GAINED, UH, IN THIS COMMUNITY IS UN, YOU KNOW, IRREFUTABLE. UH, NOT JUST WITH REGARD TO, UH, UNEMPLOYMENT RATE, BUT ALSO GAINFUL EMPLOYMENT. UH, WAGES INCREASING, UH, THE LEVEL OF PROSPERITY ACROSS THE CITY INCREASING. THE CHALLENGE IS IT'S NOT BEING EQUITABLY, EQUITABLY SPREAD. [01:55:01] IT SHOULD BE NOTED THOUGH, THAT TWO PROJECTS THAT WE DIDN INCENT, UH, ERNST AND YOUNG, AND THEN THE OAKEN PROJECT BOTH NOTED, THEY CAME HERE BECAUSE OF WORKFORCE. THE, UH, TALENT AND EDUCATION AND SKILLS THAT WE HAVE GENERATED WITHIN THE WORKFORCE. THE VAST MAJORITY OF JOBS, 95% OR MORE ARE COMING BECAUSE WE BUILT AND ARE BUILDING A QUALITY PLACE TO DO BUSINESS AND TO LIVE IN. WHEN WE WANT TO REV THE ENGINE TO MEET, TO FILL THE GAPS, TO CHANGE THE WAY THE TRAJECTORY OF SOME OF THESE COMMUNITIES ARE, ARE EXPERIENCING THAT KIND OF PROSPERITY, THAT'S WHEN THE INCENTIVES COME IN, AND THAT'S WHEN WE CAN MAKE A DIFFERENCE IN OUR CITY. UM, AND THAT'S WHY I THINK THE SHARPENING OF THE TOOLS IN THIS SENSE MAKES GOOD SENSE. UH, AND WE SHOULD CONTINUE TO DO THAT. UM, WE HAVE IDENTIFIED COMPASSION EQUITY AS THINGS WE SHOULD STRIVE FOR AS A COMMUNITY. UM, I'M GLAD TO SEE THAT IT'S BAKED INTO OUR ECONOMIC PRINCIPLES SO THAT WHEN WE WRITE A CHECK ON BEHALF OF THE TAXPAYERS OF SAN ANTONIO, WE'RE ACHIEVING COMMUNITY DESIRED OUTCOMES. SO, GREAT JOB. UM, LOOK FORWARD TO SEEING THE IMPACT OF THESE, UH, OF THESE TWEAKS. WE DO HAVE AN EXECUTIVE SESSION, HOWEVER, WE'RE GONNA TAKE A BREAK BEFORE WE GET THERE. SO WE'RE GONNA RECONVENE AN EXECUTIVE SESSION AT 4 25. PERFECT. SO THE TIME IS NOW 4:10 PM ON THIS 28TH DAY OF NOVEMBER, 2018. PURSUANT TO THE AUTHORITY GRANTED BY CHAPTER 5 5, 1 OF THE TEXAS GOVERNMENT CODE V T C SS, THE TEXAS OPEN MEETINGS ACT, THE CITY COUNCIL WILL NOW RECESS INTO EXECUTIVE SESSION TO DISCUSS ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.087, ECONOMIC DEVELOPMENT, PURCHASE EXCHANGE, LEASE, OR VALUE OF REAL PROPERTY PURSUANT TO TEXAS GOVERNMENT CODE SECTION 5 5 1 0.072 REAL PROPERTY AND LEGAL ISSUES RELATED TO THE CHARTER AMENDMENTS PURSUANT TO TEXAS GOVERNMENT SE CODE SECTION 5 5 1 0.071 CONSULTATION WITH ATTORNEY. SO WE WILL RECONVENE AN EXECUTIVE SESSION AT 4 25. GOOD EVENING, LADIES AND GENTLEMEN. UH, WE'RE GOING TO BEGIN, UH, PUBLIC HEARINGS THIS EVENING. AND, UH, WE HAVE TWO SCHEDULED, FOLLOWED BY CITIZENS TO BE HEARD. AND I'LL ASK THE CLERK TO GO AHEAD AND READ ABOUT THE FIRST PUBLIC HEARING. UH, WE DID HAVE, UH, EARLIER MEETING AN EXECUTIVE SESSION. NO ACTION WAS TAKEN AT THAT TIME. UH, THE, THAT EXECUTIVE SESSION WILL BE CONTINUED TOMORROW AFTER OUR COUNCIL A SESSION. THANK YOU. YES, SIR. THE FIRST ITEM IS FIRST PUBLIC HEARING OF THE PROPOSED VOLUNTARY ANNEXATION OF A 15.99 ACRE PROPERTY IN NORTH CENTRAL BEXAR COUNTY, AS REQUESTED BY THE LENE DE CANTU FAMILY, LP, THE PROPERTY OWNER LOCATED AT 23 2 1 1 US HIGHWAY 2 81, AND GENERALLY LOCATED SOUTHWEST OF THE INTERSECTION OF NORTH WIND BOULEVARD AND US HIGHWAY 2 81. AT THIS TIME IN CONSULTING THE, UH, SIGNUP SHEET TO SPEAK, WE HAVE NO ONE WHO SIGNED UP TO SPEAK AT THIS PUBLIC HEARING. HEARING NONE AT THIS TIME, THEN I'LL GO AHEAD AND, UH, CALL THIS PUBLIC HEARING CLOSED. ENCLOSED, WE NOW WILL GO AHEAD AND, UH, GO TO THE SECOND PUBLIC HEARING. THE CLERK WILL READ THE HEARING. YES, SIR. UH, ITEM NUMBER THREE IS THE FIRST PUBLIC HEARING OF THE PROPOSED VOLUNTARY ANNEXATION OF A 90.73 ACRE PROPERTY IN SOUTHWEST FAIR COUNTY, AS REQUESTED BY THE PROPERTY OWNERS HAND UP HOMES L L C, GENERALLY LOCATED IN COUNTY BLOCK 42 98, ADJACENT TO WATSON ROAD, CONTIGUOUS TO THE CITY OF SAN ANTONIO LIMITS, AND LOCATED WITHIN THE SAN ANTONIO EXTRATERRITORIAL JURISDICTION. THANK YOU. WE HAVE SEVERAL PEOPLE SIGNED UP TO SPEAK AT THIS PUBLIC HEARING. I'LL GO AHEAD AND CALL THE NAMES. UH, YOU'LL HAVE THREE MINUTES. THE FIRST PERSON SIGNED UP IS ARTMAN BLAND, FOLLOWED BY MARK PEREZ. CITIZENS BE HEARD OR, UH, ANNEXATION. THIS IS THE PUBLIC HEARING ON ANNEXATION AT THIS TIME. WELL, ON THE ANNEXATION, UH, WE HAVE A, A, A CITY THAT HAS SUCH A, A, A WONDERFUL FUTURE, AND IT'S EMBARRASSING THAT WE ARE [02:00:01] BEHIND TIME. NOW, I WAS READING MR. PEREZ'S FOLDER AND ANNEXATION. IF, IF, IF YOU LOOKED AT HIS FOLDER, YOU'D SEE ALL THE VIOLATIONS, EVERYBODY WOULD BE FIRED DOWN HERE. CODE COMPLIANCE, CRAIG MARTIN, EVERYBODY ELSE WOULD BE FIRED. WE'D HAVE TO START ALL OVER. AND, AND IT'S EMBARRASSING THAT THE CITY IS THIS FAR BEHIND WITH THE MARIJUANA LAWS ANNEXATION. I, I DON'T, YOU KNOW, ANNEXATION IS, UH, UH, IT'S, IT'S, IT'S PRETTY, IT'S, IT'S PROBABLY CORRUPT LOOKING AT HIS FOLDER. SO I, I DON'T KNOW WHERE YOU WOULD HAVE TO HAVE TO GO. UH, UH, BUT W WE NEED TO GO INTO SOME, SOME BETTER LAWS AND WE SHOULDN'T BE THIS FAR BEHIND WITH, WITH A LIST RUNNING THE CITY. AND, AND IT'S, IT'S EMBARRASSING TO THE CITY SPURS. WE GOT A A, A A A POTENTIAL FOR A GREAT GREATER CITY, AND WE WAY BEHIND TIME ON ALL OF IT, IT'S ATION IS, IS IS PROBABLY CORRUPT TOO. JUST READING HIS FILES THAT HE HAS THERE AND, AND, AND A WHOLE LOT OF PEOPLE WOULD BE LOCKED UP. BUT YOU GOTTA START ALL OVER IN HERE AGAIN, CITY MANAGERS AND EVERYBODY. SO, UH, THE ANNEXATION IS, UH, IT'S, IT'S MORE. AND, AND, AND THE PEOPLE, PEOPLE NEED TO SPEAK MORE ABOUT THE ANNEXATION AND FIND OUT MORE ABOUT IT. IS THIS CITIZENS TO BE HEARD OR WHAT? THIS IS ANNEXATION. THIS IS THE PUBLIC HEARING. MR. BLAND. THANK YOU MR. BLAND. SECOND PERSON ON OUR PUBLIC HEARING REGARDING ANNEXATION IN SOUTHWEST BEAR COUNTY IS MARK PEREZ BE FOLLOWED BY NATALIE GRIFFITH. GRIFFITH. GOOD EVENING CITY COUNCIL. MY NAME IS MARK PEREZ. AND WHEN IT COMES TO ANNEXATION, LIKE MR. BLAND SAID, WE'RE WAY BEHIND HERE IN THE CITY ON TODAY'S CITY SERVICES. AS YOU KNOW, YOU KNOW, WHEN IT COMES TO ANNEXATION, BACK THEN, IT WAS ONE YEAR, I THINK NOW IT'S WHAT, SIX MONTHS. BUT IF YOU LOOK, AND I'VE BEEN BACK AND FORTH WITH, WITH MANY OF THE PROPERTIES HERE IN THE CITY, AND THESE PEOPLE NEVER REGISTERED, NEVER REGISTERED. 20 YEARS, FOR EXAMPLE, LIKE THAT REFINERY ON A SOUTH PRESA, 20 YEARS FOR THEM TO COME. AND NOW THEY'RE FINALLY TRYING TO GET THEIR PERMITS NOW. BUT GRANDFATHER, THEY OWE THE CITY A LOT OF MONEY. A LOT OF MONEY IF THEY'VE BEEN THERE DOING BUSINESS. BUT I TELL YOU, Y'ALL BEEN RESISTING FROM THESE FOLKS PAYING CHIEF HOOD NEEDS TO GO. JUST FOR EXAMPLE, WHEN THAT REFINERY WAS ANNEXED BY THE CITY, THEY DIDN'T HAVE NO HAZMAT PERMIT. AND IT CONTINUED EVEN WELL AFTER THEY HIRED HIM. WHY DO YOU THINK MICHAEL BERNARD LEFT? WE HAVE A DYSFUNCTIONAL CITY ATTORNEY'S OFFICE. YOU THINK HE SHOULD BE OUT THERE COLLECTING THE MONEY? NO. BUT ANYWAY, OUR POLICE FORCE, IT'S BEEN VERY BAD ON ANNEXATION. I WAS TALKING TO MR. CISNEROS OR MR. STOSS, AND I FOUND OUT THAT THERE'S A FINANCIAL CRIMES OFFICER IN THE CITY. MARCO BOOTH. MARCO BOOTH, AND I'M GONNA FIND OUT WHY ARE THESE OFFICERS NOT CONTACTING THAT GENTLEMAN? MR. STOSS HANGS UP THE PHONE ON ME. BUT ANYWAY, MARCUS BOOTH, FINANCIAL CRIMES, YOU CONTINUE TO ASSIST ALL THESE INDIVIDUALS. THAT STUFF, WHEN RAUL BRAVO IS STILL CONTINUING CONS AFTER CONS AFTER CONS, YES. EVERY CITY COUNCIL MEMBERS THAT HAD BEEN SITTING ON THERE BEEN TAKING ZONING KICKBACKS, AND WE CAN PROVE IT. MR. BROCK HOUSE, YOU CONTINUE. HAVE YOU GRANT, YOU'VE BEEN PLANNING AMENDMENTS ON THAT REFINERY. HMM. THEY'VE BEEN GETTING PERMIT ACTIVITY OUT THERE IN THE STORM WATER. AND THEN THEY JUST HAD THAT S SPILL LAST WEEK. HMM. ANNEXATION. AND Y'ALL WANT THE, THE FIRE DEPARTMENT TO, TO KNOW MORE, BY THE WAY, THEY GOT THEIR OWN FIRE DEPARTMENT OUT THERE. HOW DID THEY DO THAT? YES. BUT ANYWAY, YOU KNOW, MR. PALASH, YOU THINK YOU'RE VERY CONCERNED. YOU'VE BEEN ON THE WATER COMMITTEES FOR MANY YEARS ALREADY, SIR, HOW MUCH MONEY HAS SOLVED, UH, UH, AS A RIVER AUTHORITY MADE ON THAT REFINERY ON FINES, AND THEY'D HAVE NO CITY PERMITS. AND YOU ASK EACH AND EVERY ONE OF THESE PEOPLE THAT DO ANNEXATION, HOW DID THE REFINERY GET THROUGH THE LOOPS? AND WHAT DO YOU THINK THEY'RE GONNA DO? TURN THEIR BACK ON THEIR EMPLOYER? THESE PEOPLE ARE FAKES WHEN IT COMES TO ANNEXATION. WHO ARE THEY GONNA CHARGE YOU? TALKING ABOUT CONTAMINATING PROPERTIES OUT THERE. YOU THINK THEY'RE GONNA GO AFTER THEM? NO. MS. BRIDGET, SHE HUNG [02:05:01] UP THE PHONE ON ME. THE CITY CHARTER. SAY THE DIRECTIONS OF THESE PEOPLE. WHAT DO YOU THINK THEY'RE DOING? TURN YOUR BACK. THANK YOU, MR. PEREZ. THANK YOU. NATALIE GRIFFITH, FOLLOWED BY MICHAEL TAYLOR. HI, GOOD EVENING. UM, I AM, UH, THE PRESIDENT OF HABITAT FOR HUMANITY OF SAN ANTONIO, AND I'M HERE TO SPEAK IN SUPPORT OF AGENDA ITEM NUMBER THREE, THE VOLUNTARY ANNEXATION AND ZONING OF THE WATSON ROAD PROPERTY. UH, HABITAT IS LEADING THE DEVELOPMENT PLANNING FOR THIS TRACK AND, UH, AT THE TIME IT WAS ORIGINALLY ACQUIRED BY HAND OF HOMES IN EARLY 2018. AND THROUGHOUT HABITAT'S INVOLVEMENT FROM BEFORE THEN TO THIS OCTOBER, WE AND EVERYONE INVOLVED IN THE ACQUISITION AND DEVELOPMENT PLANNING FOR THIS PROPERTY BELIEVED IT WAS ALREADY IN THE CITY LIMITS AS WE RELIED ON VARIOUS CITY RECORDS THAT INDICATED THAT, UH, THE CITY NOTIFIED US IN OCTOBER, THAT THE PROPERTY IS ACTUALLY NOT IN THE CITY LIMITS. AND SO THIS ANNEXATION IN THE UPCOMING ZONING CASE WILL FIX THAT. UH, SO WE CAN GET BACK ON TRACK WITH OUR DEVELOPMENT PLANNING. UM, I WANNA GIVE A SPECIAL SHOUT OUT AND THANK YOU TO THE STAFF OF THE DEPARTMENT OF PLANNING AND COMMUNITY DEVELOPMENT AND DEVELOPMENT SERVICES FOR THEIR DILIGENT WORK IN GETTING THIS RESOLVED SO QUICKLY. UM, I ALSO WANNA LET EVERYONE INVOLVED KNOW THAT THERE IS TREMENDOUS PUBLIC SUPPORT FOR THIS CASE AND OUR DEVELOPMENT PLANNING. UH, SO WE ASK FOLKS TO LET YOU KNOW THAT THEY SUPPORT THIS GREAT INITIATIVE. I HOPE YOU'VE ALREADY HAD A CHANCE TO REVIEW THE INFORMATION THAT WAS DELIVERED TO YOU YESTERDAY AND THE UPDATE THAT WAS EMAILED TO YOU ALL TODAY. I AM VERY HUMBLED AND HONORED TO ANNOUNCE FOR THE RECORD THAT WE HAVE RECEIVED OVER 425 LETTERS OF SUPPORT FROM BUSINESSES, CHURCHES, AND INDIVIDUALS. THE MAYOR AND COUNCILMAN SALANA HAVE RECEIVED A COPY OF EVERY LETTER, AND EACH OF YOU SHOULD HAVE RECEIVED A SAMPLING FROM YOUR OWN DISTRICT. I'M HERE TONIGHT TO FORMALLY PRESENT ALL 425 LETTERS RECEIVED, UH, TO THE CITY, SO THEY MAY BE PROPERLY ENTERED INTO THE ANNEXATION AND ZONING CASE RECORDS. UH, WE CAN'T DO OUR IMPORTANT WORK WITHOUT THE HELP AND SUPPORT OF THE CITY. SO, AS A FOLLOW UP TO, UH, TO THANKSGIVING, I GIVE THANKS FOR EACH ONE OF YOU, UM, AND OUR CITY COUNCIL FOR YOUR PAST, CURRENT AND FUTURE SUPPORT OF HABITAT AND THE IMPORTANT WORK THAT WE DO FOR THE GREATER THAT WE DO WITH THE GREATER COMMUNITY. SO THANK YOU. THANK YOU, MS. GRIFFITH. MICHAEL TAYLOR. GOOD EVENING, MAYOR AND COUNCIL. UM, MICHAEL TAYLOR, VICE PRESIDENT HABITAT FOR HUMANITY OF SAN ANTONIO. I'M ALSO HERE TO SPEAK IN FAVOR OF THIS ITEM, AND I REALLY JUST WANTED TO SHARE WITH YOU, UM, SOME OF THE, UH, CRITERIA THAT WE LOOK AT WHEN SELECTING A PROPERTY. JUST TO, JUST TO EMPHASIZE HOW, UM, IMPORTANT, VITALLY IMPORTANT IT IS THAT, THAT WE BE ABLE TO CONTINUE WITH OUR DEVELOPMENT AT THIS PROPERTY. SO, AS YOU ALL ARE PROBABLY WELL AWARE, THERE'S ABSOLUTELY NO MARGIN IN AFFORDABLE HOUSING FOR A NON-PROFIT BUILDER. UM, SO WE HAVE TO BE VERY CAREFUL TO SELECT A PROPERTY WITH, UH, LOW DEVELOPMENT COSTS, LOW ACQUISITION COSTS, UM, A PROPERTY WITH UTILITIES ON SITE, APPROPRIATE TOPOGRAPHY. UM, AND THIS IS A PROPERTY THAT MET THOSE CRITERIA. UM, AND AT THE TIME WE ACQUIRED IT, WE BELIEVED IT WAS IN THE CITY. SO, UM, IN ADDITION TO THOSE, UH, KIND OF, UH, LAND SPECIFIC ITEMS, WE ALSO LOOK FOR AN AREA WHERE OUR HOME BUYERS WILL HAVE THE GREATEST, UH, ACCESS TO OPPORTUNITY. UH, SO WE LOOK FOR A SITE THAT HAS PROXIMITY TO EMPLOYERS QUALITY SCHOOLS, UH, LOW CRIME RATE, AND PROXIMITY TO SERVICES AND OTHER AMENITIES. UH, AND AGAIN, THIS SITE IS, IS JUST GREAT FOR THAT. UM, IN THE CASE OF OF WATSON ROAD, OUR HOMEOWNERS WILL HAVE ACCESS TO MAJOR EMPLOYERS WITHIN A 10 MINUTE DRIVE. AND WE'RE TALKING ABOUT SOME BIG TIME EMPLOYERS, UH, SLUMBER J FSA, ARAMARK, UM, MARY CHAN, SMURFIT KAPPA NORTH PARK, TOYOTA, AND THEN OF COURSE, TOYOTA MOTOR MANUFACTURING, WHICH IS A SEVEN MINUTE DRIVE FROM OUR SITE. UH, TEXAS A AND M, SAN ANTONIO, PALO ALTO COLLEGE, UH, LACKLAND AIR FORCE BASE, UM, EVEN NOT TOO FAR TO BROOKS CITY BASE AND PORTES SA, SO A LOT OF OF GOOD EMPLOYERS. UM, WE'RE ALSO LESS THAN A MILE FROM A BRAND NEW SOUTHWEST I S D, UH, CAMPUS, THE NEW LEGACY HIGH SCHOOL, RESNICK MIDDLE SCHOOL, UH, WHICH WILL PROVIDE, UM, GREAT QUALITY EDUCATION FOR OUR, OUR FUTURE HOME BUYERS. UM, ABSOLUTELY NO CRIME IN THE AREA, WHICH IS A GREAT THING. UM, AND WE'RE ALSO CLOSE TO SOME AMENITIES THAT ARE COMING IN VERY QUICKLY. UH, WE'RE RIGHT NEXT TO THE PRESERVE AT THE MEDINA RIVER, WHICH IS A BIG 530 ACRE MASTER PLANNED, UH, COMMUNITY THAT'S GOING IN, DOWN, DOWN RIGHT NEXT TO US. AND THAT'S GONNA INCLUDE [02:10:01] SOME BIG BOX RETAIL, UM, AND SOME OTHER AMENITIES THAT OUR FUTURE HOMEOWNERS WILL BE ABLE TO TAKE ADVANTAGE OF. UM, WE'RE CLOSE TO AN EXISTING BUS LINE, WHICH IS GONNA BE UPGRADED, UH, AS, AS PART OF VIAS, UH, VISION 2040 PLAN. UM, OF COURSE, OUR DEVELOPMENT IS CONSISTENT WITH CITY PLANS. WE LOOK FOR THAT AS WELL. UM, SA TOMORROW IDENTIFIED THIS AS AN AREA THAT HAS THE CAPACITY FOR A LOT MORE, UH, RESIDENTIAL AND, UM, HOUSING UNITS. AND SO, UM, YOU KNOW, THIS IS THE PART OF TOWN THAT HAS THAT CAPACITY. AND WHEN YOU COMBINE THAT WITH ALL OF THE ASSETS, UM, YOU KNOW, WE BELIEVE THAT THIS IS OUR FUTURE. WE ARE VERY FORTUNATE TO GET THIS PROPERTY AT AN AFFORDABLE PRICE. THANK YOU. THANK YOU, MR. TAYLOR. THE PUBLIC HEARING ON THE ANNEXATION IN SOUTHWEST BEAR COUNTY IS, IS NOW CLOSED. ALL UH, ALL CITIZENS HAVE, UH, APPROACHED THE PODIUM TO SPEAK. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.