Dec 04, 2024 City Council B Session

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>> MAYOR NIRENBERG: ALL RIGHT. GOOD AFTERNOON, EVERYONE. I WASN'T SURE IF WE HAD THE TRANSLATION SERVICES ANNOUNCEMENT? NO? OKAY.

ALL RIGHT. GOOD AFTERNOON, EVERYONE.

THE TIME IS 2:09 P.M. ON THE FOURTH DAY OF DECEMBER, 2024.

WE'LL CALL OUR B SESSION TO ORDER. MADAM CLERK, COULD YOU

READ THE ROLL? >> CLERK:

[ ITEMS  ]

>> MAYOR NIRENBERG: ALL RIGHT. WELCOME, EVERYONE.

OUR B SESSION TODAY HAS TWO ITEMS ON THE AGENDA, SO WE'LL GO AHEAD AND GET STARTED. ERIK WALSH, OUR CITY MANAGER.

>> WALSH: THANK YOU, MAYOR. GOOD AFTERNOON, MAYOR AND COUNCIL. THE FIRST ITEM FOR BRIEFING TODAY IS ON OUR CONVENTION CENTER FEASIBILITY STUDY. YOU'LL HEAR FROM MICHAEL LOCKWOOD FROM POPULOUS AND JOHN KATZ FROM CSL THROUGHOUT THE PRESENTATION. WE ENGAGED THESE EXTERNAL CONSULTANTS TO CONDUCT THE FEASIBILITY STUDY OF AN EXPANDED -- OR AN EXPANSION OF THE HENRY B.

GONZALEZ CONVENTION CENTER. TODAY'S DETAILED BRIEFING WILL BE FOCUSED ON REALLY THE FIRST PHASE OF THAT STUDY.

A PROPOSED EXPANSION OF THE CONVENTION CENTER BASED ON MARKET AND OTHER ANALYSIS. IN OTHER WORDS, WHAT SHOULD WE DO IN TERMS OF AN EXPANSION. AND YOU'LL UNDERSTAND THE COMPLEXITY OF IT AS WE GO THROUGH THE PRESENTATION. SUBSEQUENT PHASES OF THE FEASIBILITY STUDY WILL INCLUDE AN ESTIMATED RANGE OF COST FOR THE PROPOSED PROJECT AND A FORECAST OF REVENUES TO BE UTILIZED TO FUND THE PROJECT. AND THAT WORK IS ONGOING, AND WILL BE PRESENTED TO YOU IN THE FUTURE. I'LL LIKEN IT TO A LOT OF THE EARLY WORK WE DID WITH THE TERMINAL DEVELOPMENT PLAN AND THE STRATEGIC PLAN ABOUT THE SIZE OF THE TERMINAL NEEDED, BASED ON ACTIVITY AND PROJECTED ACTIVITY.

THAT'S WHERE WE'RE AT RIGHT NOW WITH THE CONVENTION CENTER.

SO WITH THAT, I'M PLEASED TO INTRODUCE TO YOU -- WE'LL START OFF WITH MICHAEL LOCK WOOD WITH POPULOUS AND THEN TRANSITION TO JOHN, AND

THEN I'LL WRAP US UP. >> THANK YOU. GOOD AFTERNOON, MAYOR AND COUNCILMEMBERS. GREAT TO BE HERE. I'M GOING TO WALK YOU THROUGH SOME SLIDES HERE IN REGARDS TO THE FEASIBILITY AND PLANNING STUDY FOR THE CONVENTION CENTER COMPONENT OF THE PROJECT VISION AND JOHN KATZ WILL FOLLOW UP WITH SOME FEASIBILITY CONTENT AND THEN WE'LL BE AVAILABLE FOR QUESTIONS. TO GIVE AN OVERVIEW OF THE CONVENTION CENTER FOR TODAY, THE PROCESS HAS BEEN ABOUT PLANNING AND FEASIBILITY STUDY.

WE'RE GOING TO TALK ABOUT WHERE WE SHOULD GO. SAN ANTONIO'S CONVENTION CENTER IS AN AMAZING DESTINATION. IT IS ALSO AN URBAN CONVENTION CENTER, IT'S HELHEMMED IN ON ALL SIDES.

I UNDERSTAND THE LIMITATIONS OF THE SITE, SO WHEN WE LOOK AT EXPANDING URBAN CENTERS, WE WANT TO LOOK AT EVERY OPTION POSSIBLE, AND WE'LL TALK ABOUT A FEW OF THOSE TODAY. SQUARE FOOTAGE IS ALWAYS A KEY FOR CONVENTION CENTER, WHAT TYPE, EXHIBITION SPACE, BALLROOM SPACE, THE TYPES OF SPACES SOLD IN THE MARKETPLACE, WHAT ARE THE CUSTOMERS FOR LOOKING AT NOW AND IN THE FUTURE. AND THEN WHAT TYPES OF SPACES ARE INVOLVED WITH THAT. WE'LL TALK BRIEFLY ABOUT SOME BENCHMARKING OF OTHER FACILITIES THAT ARE BEING DEVELOPED WITHIN THE STATE OF TEXAS, BUT THEN ALSO NATIONALLY. THE CONVENTION CENTER MARKET WAS PROBABLY ONE OF THE HARDEST HIT ENTERTAINMENT MARKETS DURING THE PANDEMIC, SO COMING OUT OF THE PANDEMIC, THERE'S A LOT OF PENT UP DEMAND FOR THESE FACILITIES AND HENCE THE GROWTH OF THESE FACILITIES THROUGHOUT THE COUNT TRIVMENT I'LL TALK THROUGH A FEW OF THOSE TO GET A SENSE OF THE MARKETPLACE. JOHN WILL TALK ABOUT SOME OF THE AMENITIES AND SPACES THAT THE CURRENT/FUTURE CUSTOMERS ARE LOOKING FOR. GOING BACK IN TIME JUST A LITTLE BIT, IF YOU REMEMBER THE SITUATION OF THE FACILITY AFTER THE 2000 EXPANSION, THE

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TO GIVE A SENSE OF WHAT'S GOING ON IN TEXAS, IF YOU'VE NOT HEARD ABOUT THE CONVENTION CENTER PROJECTS, STARTING AT THE TOP OF THE SCREEN WITH DALLAS, JUST GETTING STARTED, PROBABLY AT TWO AND A HALF TO $3 BILLION TOTAL REBUILD OF THEIR CONVENTION CENTER. FOR A LONG TIME, THEIR CONVENTION CENTER GREW. IT REALLY CREATED A BOUNDARY BETWEEN DOWNTOWN AND THE CEDARS NEIGHBORHOOD, AND THE IDEA NOW IS TO DEMOLISH AND REBUILD THAT CONVENTION CENTER TO THE WEST OF LAMAR, TO REALLY RECONNECT THOSE DOWNTOWN NEIGHBORHOODS. THAT'S GOING TO COST ABOUT TWO AND A HALF, $3 BILLION JUST GETTING STARTED FOR DESIGN.

FORT WORTH, IT'S TWO PHASES BUT IT'S ABOUT OVER $700 MILLION COLLECTIVELY. AUSTIN JUST STARTED THE DESIGN ON THEIR REBUILD.

THEY'RE ALSO GOING TO DEMOLISH THEIR BUILDINGS AND PUT THE EXHIBIT HALLS UNDERGROUND. THAT'S GOING TO REALLY HEAL THE CITY THAT WAS SEPARATED BY THESE LARGE FACILITY FOOTPRINTS, AND HOUSTON IS JUST GETTING STARTED ON A $2 BILLION PLAN PHASED OVER 10 YEARS, BUT THE IDEA IS TO EXPAND SOUTH AND THEN COME BACK AND R RENOVATE THE MAIN STRUCTURE WHEN THE FREEWAY IS BUILT IN HOUSTON.

THERE'S A THEME HERE OF THESE BUILDINGS BEING UNDERSTOOD OVER TIME AND BEING BETTER NEIGHBORS TO THEIR COMMUNITIES. NATIONALLY, THERE PROJECTS THAT HAVE BEEN DONE. YOU GET A SENSE ACROSS THE INDUSTRY, SEATTLE WAS JUST COMPLETED, LA IS UNDERWAY FOR DESIGN RIGHT NOW. IT'S EXPECTED TO BE BUILT FOR THE LA2028 OLYMPIC GAMES. IT WILL BE USED AS A MEDIA HEADQUARTERS AND HOST FOR OLYMPIC EVENTS THERE AS WELL FOR THE CONVENTION CENTER.

YOU'LL SEE SOME PROJECTS, MILWAUKEE WAS JUST COMPLETED AND BOSTON AND ORORANGE COUNTY. A LOT OF PENTUP DEMAND THROUGH THE PANDEMIC.

ONE THING THAT WE LEARNED IS THAT PEOPLE LOVE TO BE TOGETHER.

CONVENTION CENTERS ARE BUILT AROUND MEETING FACE-TO-FACE.

JOHN'S GOING TO TALK MORE ABOUT HOW THAT IMPACTS A COMMUNITY FROM AN ECONOMIC POINT OF VIEW. WE LOOKED AT TWO VIABLE OPTIONS FOR EXPANDING.

OPTION 1 IS THE PREFERRED OPTION, AYE ELTALK IN MORE DETAIL.

I WANT TO TOUCH ON OPTION 2 FOR A SECOND, WE WANT TO EXPAND THE BUILDING BY UP TO 200,000 SQUARE FEET OF EXHIBITION SPACE THAT.'S CHALLENGING GIVEN THE SITE. ONE OF THE OPTION WAS STACKING THAT ON TOP OF THE EAST OF THE EXHIBIT HALLS. IT'S NOT CONTIGUOUS, AND WHEN YOU BUILD THAT, YOU WOULD ALSO TAKE DOWN THE EXHIBIT HALLS FOR A PERIOD OF TIME TO RESTRUCTURE THE ROOF TO BUILD ON TOP.

YOU WOULD BASICALLY TAKE HALF OF YOUR CONVENTION CENTER OFFLINE.

THAT PUSHES THE SCHEDULE OUT FROM A CONSTRUCTION AND COST POINT OF VIEW AND IMPACTS THE EVENTS ALREADY SCHEDULED. IT'S A DOUBLE NEGATIVE TO DO THAT. IT'S A GOOD PLAN URBANISTICALLY, BUT FROM A FINANCIAL POINT OF VIEW, IT'S VERY, VERY CHALLENGING.

THAT MADE US LOOK AT OPTION 1, WHICH IS RECONFIGURING THE WEST SIDE OF THE BUILDING. I MENTIONED THERE'S A VEST TAJ OF SPACE AROUND THE RIVERWALK, OLDER MEETING ROOMS, A BRIDGE HALL.

WE STUDIED THAT IN 2009, 2010. THE BRIDGE HALL IS REALLY LIMITED IN REGARDS TO HOW MUCH WEIGHT IT CAN SUPPORT.

SO IT DOESN'T REALLY FUNCTION AS TIER 1 EXHIBITION SPACE, AND AS I MENTIONED THE WEST WING BUILDING WAS NEVER REMODELED.

IT'S BEEN MOTHBALLED IN PLACE. SO IT'S A GREAT OPPORTUNITY TO REINVIGORATE THAT PORKS OF THE SITE.

SO STARTING AT THE RIVER LEVEL WE'RE LOOKING AT BUILDING MEETING SPACE DOWN THERE. AT GRADE WOULD BE AN EXHIBIT HALL CONNECTION, SO A CONTIGUOUS EXHIBIT HALL AND THESE DIAGRAMS ARE SHOWING 137 137,000 SQUARE FEET. THIS IS THE MOST CONSERVATIVE VERSION.

WE WANT TO MAKE SURE WE CAN GET AS CLOSE TO 200,000 IN ADDITION EXHIBITION SPACE AS MUCH AS POSSIBLE, AND THERE ARE WAYS TO DO THAT, BUT THIS IS A VERY CONSERVATIVE APPROACH. ON TOP OF THAT EXHIBIT HALL WOULD BE A NEW BALLROOM THAT WOULD HAVE VIEWS AND BALCONIES OVERLOOKING THE NEW CIVIC PARK TO THE WEST. SO THIS IS A VIEW OF WHAT

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AT GRADE WOULD BE THE EXHIBITION HALL. NOW, THESE COULD BE GLASS WALLS OR LARGE WALLS THAT OPEN UP SO THE ENTIRE EXHIBIT HALL COULD SPILL OUT ONTO THE CIVIC PARK, YOU CAN IMAGINE COMMUNITY EVENTS TAKING USE OF THAT SPACE OR EVENTS COMING OUT AND SPILLING OUT AND ENGAGING WITH THE COMMUNITY IN A POWERFUL WAY. THE CONVENTION CENTER REALLY DOESN'T DO THAT TODAY. AND THEN ON TOP OF THAT WOULD BE THE NEW BALLROOM WITH BALCONIES, WITH GLASS OVERLOOKING THE PACIFIC PARK AREA. THIS IS FROM THE SOUTH CUTTING THROUGH THE PROJECT LOOKING TO THE NORTH, SO ON THE LEFT-HAND SIDE OF THE SCREEN IS THE NEW CIVIC PARK THAT WAS JUST COMPLETED.

THE EXHIBIT HALL BEING CONTIGUOUS WITH THE EXISTING EXHIBIT HALLS, NOW WE HAVE AN OPPORTUNITY TO OPEN UP THE BUILDING ANDEN GAWJ WITH THE OUTDOOR SPACE. BELOW THAT, YOU CAN SEE THE RIVERWALK CONNECTION. WE WOULD BRING THE RIVER UP TO A CERTAIN POINT, AND THEN THERE WOULD BE A PEDESTRIAN CONNECTION THAT CONNECTS UNDER THE BUILDING AND UP INTO HEMISFAIR PARK TO MAKE SURE WE'RE HONORING THAT CONNECTION AND ALLOWING PEOPLE TO CONNECT BACK INTO THE DISTRICT AS WELL. MEETING ROOM ON TOP OF THAT SPIED R SPACE.

AND THE BALLROOM COULD HAVE OPERABLE WALLS, WE'RE LOOKING AT AT 77,000 FOOTBALL ROOM, OPEN OUT INTO THE PREFUNCTION SPACE, OUT ONTO BALCONIES AND OVERLOOKING THE CIVIC PARK.

THE LAST SLIDE I'M GOING TO TALK ABOUT BEFORE JOHN COMES UP, UNDERSTANDING HOW CONVENTION CENTERS ARE SOLD, THIS IS BOTH A FEASIBILITY ASPECT BUT ALSO A PLANNING ASPECT. WHAT TYPE OF SPACE DO WE NEED AND WHERE DO WE NEED IT? I'VE WORKED WITH JOHN ON DOZENS OF PROJECTS AROUND THE COUNTRY, AND WE'RE ALWAYS LOOKING, HOW DO WE DISTRIBUTE THE SPACE GEOGRAPHICALLY THROUGHOUT THE BUILDING, SO THAT MEETING PLANNERS CAN PACKAGE THOSE COMPONENTS TOGETHER AND USE A PORTION OF THE BUILDING.

ON THE LEFT-HAND SIDE, YOU'LL SEE WHEN YOU USE THE ENTIRE BUILDING, THAT'S FANTASTIC, BUT THAT'S ACTUALLY BECOMING THE RARITY FOR THESE TYPE OF STRUCTURES. WHAT HAPPENS IS YOU HAVE AN EVENT MOVING IN FOR A COUPLE DAYS, YOU HAVE AN EVENT THAT'S ACTIVE, PEOPLE IN HOTELS AND RESTAURANTS AND THINGS LIKE THAT, AND THEN YOU HAVE A PERIOD OF BREAKDOWN WHERE THERE'S NOT PEOPLE IN THOSE SPACES.

THE IDEAL SCENARIO IS TO HAVE TWO OR THREE EVENTS STACKED BACK-TO-BACK OR OVERLAPPING. SO WHAT WE'VE DONE IN THE LAYOUT OF THE SPACE IS IT ALLOWS YOU TO BALANCE THE FACILITY SO YOU CAN HAVE TWO AND THREE EVENTS AT A TIME, SO YOU WANT TO KEEP EVERYTHING AS ACTIVE AS POSSIBLE, ALL THE RESTAURANTS, ALL THE HOTELS, THE DISTRICT THAT WE'RE CREATING.

WE CAN GET EVENTS STACKED IN THERE BACK-TO-BACK AND HAVE AS FEW DOWN DAYS AS POSSIBLE, AS FEW DARK DAYS AS POSSIBLE. JOHN'S GOING TO TALK ABOUT HOW THESE SALES PACKAGE CORRESPOND WITH THE OCCUPANCY RATIO AND WHAT THE MARKET IS SUPPLYING U AND I'LL BE HAPPY TO COME BACK UP AND ANSWER ANY QUESTIONS ABOUT THE LAYOUT AND PLANNING OF THE

BUILDING. >> SO MICHAEL'S GIVEN US A LOT TO CONSIDER IN TERMS OF THE SPACE PLANNING AND THE OPPORTUNITIES TO ATTRACT ADDITIONAL EVENTS, STACK EVENTS, ET CETERA. ULTIMATELY, THE KEY IS, WE NEED TO STUDY IT FROM A MARKET PERSPECTIVE. AND ONE OF THE THINGS THAT WE LOOK AT FROM THAT MARKET PERSPECTIVE IS HOW BUSY HAVE WE BEEN HISTORICALLY. YOU CAN SEE ON THIS SLIDE THAT WE'RE RUNNING HISTORICALLY 70% PLUS OCCUPANCY IN MANY YEARS. AND WHAT THIS SUGGESTS TO US IS WE ARE TURNING AWAY SOME REALLY GOOD BUSINESS.

WE'RE NOT ABLE TO ACCOMMODATE THE CONVENTION MARKET IN A WAY THAT WE'D LIKE. OBVIOUSLY, WE'VE SEEN THE SLOW-DOWN DURING COVID.

WE'RE AT 67% IN 2022. I'M CURRENTLY WORKING WITH PATRICIA TO LOOK AT 2023 FROM THAT CALENDAR YEAR VERSUS F FISCAL YEAR PERSPECTIVE.

SHE'S SUGGESTING THAT WE'RE REALLY AT ABOUT 65, 66% IN 2023, AND NOT SURPRISING NEWS IS BY 2024, LOOKING FROM A CALENDAR IN A FISCAL YEAR BASIS, WE'RE GOING TO HIT 70% AGAIN. SO WE'RE RIGHT BACK INTO THIS -- I'LL CALL IT A WONDERFUL TRAP OF WE'RE SO BUSY, SO DESIRABLE, WE'RE BRINGING EVENTS TO THE MARKET, AND NOW FROM MARK'S PERSPECTIVE AND VISIT SAN ANTONIO, WE'RE JUST LOSING THE KIND OF BUSINESS WE'D LIKE TO ATTRACT GOING FORWARD. WHEN YOU TALK ABOUT OCCUPANCY, NOT ALL OCCUPANCY IS THE SAME. WE WANT TO SEE OCCUPANCY GENERATED FROM THE PERSPECTIVE OF THE CONVENTIONS AND TRADE SHOWS.

YOU CAN SEE -- CONVENTIONS AND TRADE SHOWS. SO THERE'S NO SHUFFLING OR JUGGLING OF BUSINESS, TO OPEN UP MORE DATES FOR CONVENTIONS.

WE'RE PRETTY MUCH FULL THERE. WE LOOK AT ALSO WHERE THE COMPETITIVE AND COMPARABLE MARKET IS NATIONALLY.

AND YOU CAN SEE RIGHT NOW, WE'RE AT ABOUT THE 18TH -- ON THIS

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THIS IS A COME PETSIVE SET PLUS A SPRINKLE OF OTHER VENUES NATIONALLY, BUT WE'RE CURRENTLY 18 IN TERMS OF YOUR TOTAL EXHIBIT SPACE.

YOU'RE ABOUT 515,000 SQUARE FEET. THAT'S ABOUT 18TH ON THIS PARTICULAR CHART IN TERMS OF RANKING. WITH THE PLAN THAT MICHAEL TALKED ABOUT THAT GETS US TO ABOUT 620,000 SQUARE FEET, THAT'S KIND OF A MINIMUM TARGET, WE'RE TRYING TO GET THAT EVEN HIGHER, BUT EVEN THEN, IT TAKES US FROM 18TH TO TENTH LARGEST IN TERMS OF TOTAL EXHIBIT SPACE. NOW, WE'LL TALK ABOUT THIS LATER, EXHIBIT SPACE ON A CONTIGUOUS BASIS IS VERY IMPORTANT. THOSE OF YOU GUYS WHO HAVE BEEN TO KOCHS THAT ALL OF US HAVE, EXHIBITORS DON'T WANT TO BE ON TWO LEVELS. CONTINUE TIGGOUS ONE-LEVEL EXHIBIT SPACE IS KIND OF THE GOLD STANDARD. AND RIGHT NOW WE'RE FRE14TH ON THIS LIST. BY INVESTING OF THE MINIMUM IMPROVEMENTS THAT MICHAEL TALKED ABOUT, WE MOVE UP TO EIGHTH.

WITH THE UNDERSTANDING THAT THERE'S A COUPLE OF OUR FRIENDS IN TEXAS, MICHAEL MENTIONED, THAT ARE ALSO DOING THIS. DALLAS IS GOING TO EXPAND, THEY'RE GOING TO GET TO 800,000 CONTIGUOUS AND THEY'LL STAY ABOVE US. HOUSTON COULD REACH US, SO THERE'S A LOT GOING ON RELATIVE TO YOUR COMPETITION THAT WE NEED TO TAKE INTO CONSIDERATION. MICHAEL'S PLAN TALKED ABOUT ADDING A 77,000 SQUARE FOOTBALL ROOM. WE'RE NOT GOING TO BE OVERBALLROOMED, BUT WE'RE GOING TO HAVE A LOT OF SPACE. WE'VE GOT 55 TODAY, A 40 TODAY, SO WE'RE GOING TO HAVE A SUBSTANTIAL AMOUNT OF RELATIVE BALLROOM SPACE, PARTICULARLY WHEN I LOOK AT THAT RELATIVE TO THE EXHIBIT SPACE.

THIS IS THE BALLROOM TO EXHIBIT SPACE RATIO. WE'LL HAVE THE SECOND HIGHEST RATIO IN THIS COMPETITIVE SET. SO WHEN WE LOOK AT HOW MEETINGS ARE BEING HELD TODAY, IN THESE GENERAL SESSION HALLS, THESE FOOD FUNCTION SPACES, SOCIAL GATHERING NETWORKS, GENERAL SESSIONS, THESE BALLROOMS BECOME REALLY AN IMPORTANT PART OF THE FABRIC OF HOSTING AN EVENT. IT'S ALMOST LIKE AN EVENT VILLAGE, AND THE BALLROOM IS KIND OF THE KEY TO MAKE ALL OF THAT WORK. SO WE'RE MOVING UP QUITE A BIT, BUT I ACTUALLY ENDORSE THAT. I THINK IT'S A GOOD MOVE. ANOTHER REASON I'M LIKING THAT IS WE LOOK AT THE MEETING SPACE, WE'RE AT 120,000 SQUARE FOOT TODAY.

WE MOVE TO 157 UNDER THE PLAN MICHAEL TALKED ABOUT.

WHEN I BALANCE THAT WITH THE INCREASE IN EXHIBIT SPACE, YOU CAN SEE OUR RATIO DOES IMPROVE, .23 TO .25. IF I HAD A MAGIC WAND, I'D WANT .5 TO BE EVEN A LITTLE BIT HIGHER. WE'RE SEEING MORE AND MORE MEETING SPACE USE, ESPECIALLY IN THE MEDICAL, PHARMA, TECH, THOSE HIGH-IMPACT EVENTS ARE LOOKING FOR MORE AND MORE OF THAT.

SO BY VIRTUE OF DEVELOPING A LARGER BALLROOM PACKAGE, IMAGINE THAT 77,000 SQUARE FOOTBALL ROOM IS REALLY A 50,000 SQUARE SPHOOT BALLROOM AND 20,000 SQUARE FEET OF MEETING SPACE WHEN WE WANT IT TO BE. SO WE'RE INTRODUCING SOME REALLY INCREDIBLE FLEX BLGHT INTO THE MEETING AND BALLROOM COMPONENT. AND WHEN YOU LOOK AT THE GEOGRAPHIC LAYOUT, WE'VE GOT A BALLROOM ON ONE SIDE, WE'VE GOT TWO BALLROOMS ON THE OTHER SIDE, MEETING SPACE IS DISPERSED, WHEN WE START TALKING ABOUT LOWER LEVEL EVENTS, WE'RE REALLY DESIGNING FOR THAT.

AND THAT'S IMPORTANT, BECAUSE WHEN YOU'VE GOT AN EVENT GOING FULL AHEAD FOR TWO OR THREE DAYS, 5,000 HOTEL ROOMS, IT'S HARD TO LAYER ANOTHER ONE ON THOSE EXACT SAME DATES. SO WE WANT ONE MOVING IN WHILE ANOTHER ONE'S MOVING OUT. THAT REALLY ALLOWS US TO LEVEL OFF THE ROOM NIGHT GENERATION AND ACCOMMODATE MORE EVENT TS. I LOVE WHAT WE'RE DOING IN TERMS OF THE DIRECTION. MICHAEL COVERED THIS, I WON'T SPEND A LOT OF TIME, DALLAS, AUSTIN, THERE'S MORE CONVENTION CENTER INVESTMENT IN TEXAS GOING ON THAN PROBABLY THE REST OF NORTH AMERICA COMBINED IN TERMS OF THE AMOUNT OF MONEY THAT WE'RE LOOKING TO SPEND. IT'S AN INTERESTING OBSERVATION FROM MY PERSPECTIVE AS A CONSULTANT. IT IS A CONCERNING FACTOR WHEN I'M REPRESENTING THE CITY OF SAN ANTONIO IN AN INCREDIBLY COMPETITIVE ENVIRONMENT. WE REALLY NEED TO STEP UP, GIVEN OUR DIRECT COMPETITORS ARE MAKING THE SAME KIND OF MOVE. WE ALSO SEE IT IN NEW ORLEANS, THEY'RE SPENDING OVER A HALF A BILLION DOLLARS OVER TIME. COLORADO JUST BUILT A SIGNATURE 80,000 SQUARE FOOTBALL ROOM THAT'S KIND OF SETTING THE STANDARD IN THE INDUSTRY.

MICHAEL MENTIONED SEATTLE, PHOENIX IS CONSIDERING IT, COAST TO COAST, ORANGE COUNTY, LAST ANG GAS R LAST, WE'RE SEEING IT IN SMALLER MARKETS. MILWAUKEE JUST SPENT $450 MILLION IN THEIR CONVENTION CENTER. RALEIGH'S GOING TO SPEND $350 MILLION.

SOMETIMES THE QUESTION IS IS THE CONVENTION INDUSTRY A CONTINUALLY VIABLE INDUSTRY? WE'VE BEEN THROUGH RECESSIONS, 9/11, YOU NAME IT, HURRICANES. IT ALWAYS TRACKS WITH THE ECONOMY.

AS THE ECONOMY INCREASES, SO DOES THE CONVENTION INDUSTRY, AND YOU'VE SURVEYED -- OR WE'VE SEEN SURVEYS OF CHIEF MARKETING OFFICERS, CEOS

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YOU SEE HOUSTON THERE TO THE RIGHT WITH THEIR PLAZA OUT FRONT.

LONG BEACH TO THE LEFT. INTERACTIVE DIGITAL, ON THE RIGHT, THAT'S THE SING PORE CONVENTION CENTER AND TO THE LEFT IS CONVENTIONS IN CANADA WHERE THEY'RE INTRODUCING HIGH-END INTERACTIVE SIGNAGE, WAY FINDING THAT'S ALSO SALEABLE. WE CAN GO INTO THE BUILDING AND USE IT FOR ADVERTISING SPONSORSHIP OPPORTUNITIES. THE LOBBY FOOD FUNCTION, WE HAVE A NICE FOOD COURT. IMAGINE IF THAT'S SOMETHING THAT REALLY SINGS RELATIVE TO SAN ANTONIO.

WHAT MAKES US UNIQUE FROM A FOOD AND BEVERAGE PRODUCT.

SO THESE LOBBY SPACES ARE BECOMING GATHERING SPACES, SOCIAL SPACES AS WELL AS JUST THE GATHERING NETWORK AND LEARNING AS A GENERAL LOBBY SPACE. I ALWAYS TELL THE STORY ABOUT THAT 27-YEAR-OLD ATTENDEE WHO'S LESS INTERESTED IN GOING TO THE BALLROOM TO SEE SOME OLD GUY WITH A POWERPOINT TALK WHILE THEY EAT A CHICKEN DINNER, THEY'RE MORE INTERESTED IN SPENDING TIME WITH THEIR COLLEAGUES IN A LOBBY SETTING WHERE THEY CAN SOLVE THE WORLD'S PROBLEMS. AND THE BUILDING NEEDS TO RESPOND TO THAT IN A WAY, AS I PHRASED EARLIER.

IT'S AN EVENT VILLAGE, NOT EXHIBIT MEETING AND BALLROOM SPACE.

MARKET CAPTURE ANALYSIS, THIS SPEAKS BACK TO THE PACKAGES WE TALKED ABOUT EARLIER. REALLY, REALLY CRITICAL. ON THAT UPPER SET OF BARS, I'M GOING TO START AT THE LOWEST ONE, THAT'S THE 620,000 SQUARE FEET.

THAT'S ONE PACKAGE, AS MICHAEL SAID, AND HE LAID OUT A CUP OF OTHERS, A 350, A 270, A 250, 360, ET CETERA. SO WE'VE GOT THESE PACKAGES WE CAN CREATE. THE QUESTION IS, WHAT SHARE OF THE MARKET CAN WE CAPTURE UNDER EACH OF THESE PACKAGES? GO TO THE LOWEST BAR, GO TO THE FAR RIGHT, AND THE FULL BUILDING, THAT FULL CONTIGUOUS BASE CAN ACCOMMODATE 92% OF THE CONVENTION AND TRADE SHOW MARKET THAT HAS AN INTEREST IN SAN ANTONIO. SO A FAIRLY LARGE MARKET CAPTURE.

IF I START PLAYING WITH THE OVERLAPPING EVENTS, I STILL AM IN THAT 74, 75, TO 80% CAPTURE. I CAN DO TWO EVENTS AT A MINIMUM, 75TH PERCENTILE IN TERMS OF ALL THE CONVENTIONS THAT WANT TO COME HERE.

SO WE'RE ACTUALLY CREATING AN ENVIRONMENT WHERE WE CAN SUCCESSFULLY ACCOMMODATE A FAIRLY LARGE SHARE OF THE MARKET TIMES TWO.

NOW, AS WE SAID EARLIER, WE PUT BULLDOZERS IN THE GROUND, YOU START WRITING CHECKS, YOU'VE GOT PEOPLE WORKING WITH HARD HATS, THE CONCEPT OF GETTING AS MUCH SPACE NOW AS YOU CAN IS A REAL CONCERN. IT'S A REAL -- I THINK A FOCUS FOR US, SO WE'LL WORK WITH THE ARCHITECTS TO CONTINUE TO RECAST THESE DATA RELATIVE TO IF WE ADD ANOTHER 30,000 OR 40,000 SQUARE FEET, WHAT HAPPENS TO THE MARKET CAPTURE? AND THEN ULTIMATELY, WE'LL LOOK AT IT FROM A COST BENEFIT FRAMEWORK. IF IT COSTS X TO DO, IS THERE SOMETHING BETTER WE CAN DO WITH X TO GET A HIGHER RETURN? SO ALL OF THAT ONGOING RELATIVE TO THE MARKET RESEARCH.

ECONOMIC IMPACT, WE HAVE OUR OWN WAY OF LOOKING AT THIS.

THIS IS ONE WAY. THIS IS THE DIRECT SPENDING GENERATED BY NONLOCAL ATTENDEES OVER THE COURSE OF THE LAST 14 OR SO YEARS, AND YOU CAN SEE IF I COMBINE THE HOTEL, RESTAURANT, RETAIL, ENTERTAINMENT, LOCAL TRANSPORTATION AND OTHER SPENDING BY THE EVENT ATTENDEES AND THE ORGANIZER, WE PEAKED AT 190 MILLION IN 2018, A COMBINATION OF FINAL FOUR, WE HAD A LOT OF BIG CONVENTIONS IN THAT YEAR.

WE'VE AVERAGED ABOUT $142 MILLION A YEAR IN SPENDING DIRECTLY ATTRIBUTABLE TO THE CONVENTION ATTENDEES. WORKING WITH MARK AND HIS TEAM, THEY'VE ALSO TAKEN THIS AND GONE ONE STEP OUTPUT, THAT'S WHEN YOU INTRODUCE THE MULTIPLIERS TO THIS. AND THEIR MULTIPLIERS IN THE LAST FIVE YEARS ARE SHOWING ABOUT 330 TO 350 MILLION IN TOTAL ECONOMIC OUTPUT. WE WILL ALSO CAST OUR ANALYSIS IN THAT FRAMEWORK, BUT WE ARE TALKING ABOUT SOME REALLY BIG NUMBERS IN AN INCREDIBLY IMPORTANT INDUSTRY FOR SAN ANTONIO.

WHO BENEFITS? IT'S THE HOTEL INDUSTRY, THE RESTAURANT INDUSTRY, THE RETAIL, LOCAL TRANSPORTATION, YOU CAN SEE THE DISTRIBUTION OF THOSE EXPENDITURES. NOW, WHAT HAPPENS IF WE EITHER INVEST, AS WE'VE TALKED ABOUT, OR WE DECIDE WE'RE NOT GOING TO MAKE THE INVESTMENT? YOU CAN SEE IN THE LEFT TWO BARS THE AVERAGE SPENDING, $142 MILLION FROM '10 TO '19. WE'RE ESTIMATING THAT CAN GO UP TO ABOUT $170 MILLION ON AN AVERAGE ANNUAL BASIS. NOW, REFLECT BACK TO THE PREVIOUS CHART, THAT'S A LITTLE BIT HIGHER THAN YOUR PREVIOUS HIGH WATER MARK, OTHER THAN 2018, OKAY? IT ISN'T DRAMATICALLY HIGHER, BUT IT IS A LITTLE BIT HIGHER. AND THE WAY I TALK TO CLIENTS ABOUT THIS, IF I CAN FIND A PROGRAM OF SPACE AND MAKE THAT INVESTMENT THAT ALLOWS YOU TO GENERATE ON AN ANNUAL AVERAGE BASIS AN AMOUNT OF SPENDING AND IMPACT EQUAL TO YOUR HIGHEST POINT IN THE LAST 14 YEARS, THAT'S ABOUT AS GOOD AS WE'RE GOING TO DO.

[00:25:03]

OKAY? AND LASTLY, JUST TO KIND OF PUT THIS FRAMEWORK OF THINKING AROUND WHY ARE WE INVESTING IN THE CONVENTION AND TRADE SHOW INDUSTRY, WE'RE NOT CLEVELAND, WE'RE NOT MINNEAPOLIS, MY HOMETOWN. THE VISITOR INDUSTRY IN SAN ANTONIO IS CORE THE OUR ECONOMIC HEALTH. THE CONVENTION CENTER SUPPORTS THE OVERALL TOURISM BRAND AND THE ECONOMY IN SAN ANTONIO. A FRIEND OF MINE RUNS THE CONVENTION BUREAU IN DENVER. THEY DID A SURVEY, 85% OF THE CEOS WHO HAVE MOVED A BUSINESS TO SAN ANTONIO HAVE BEEN TO A CONVENTION AT THE CONVENTION CENTER IN THE PAST. SO INTRODUCING WORD LEADERS, YOU NAME THE INDUSTRY, A VARIETY OF INDUSTRIES, TO SAN ANTONIO. SO IT'S GOOD FOR ECONOMIC DEVELOPMENT.

IF I'M COMING FROM MINNEAPOLIS WITH MY WIFE AND I'M GOING TO A CONVENTION HERE, SHE'S ATTENDING AND I'M THE GUEST, WE'RE PROBABLY COMING BACK FOR LEISURE IF WE HAVEN'T BEEN HERE BEFORE, SO IT'S A LEISURE GENERATOR. THE REVENUE THAT WE USE TO PAY FOR THESE PROJECTS REALLY IS THE HOSPITALITY INDUSTRY'S TAX. WE'RE USING THEIR MONEY TO INVEST IN ASSETS TO GENERATE MORE BUSINESS FOR THE VISITOR INDUSTRY, WE'RE CREATING THAT VIRTUOUS CYCLE. AND THAT BENEFITS THE LOCAL RESIDENT. ALL THE RESTAURANTS, THE ENTERTAINMENT, THE NIGHT LIFE, THE VIBRANCY CREATED BY THIS HOSPITALITY INVESTMENT BENEFITS YOUR CONSTITUENTS, AND THEY'RE NOT -- THEY DON'T HAVE TO PAY FOR IT. SO THAT'S REALLY IMPORTANT.

THEN LASTLY, I'LL JUST KIND OF HIT THAT LAST NAIL ON THE HEAD, THE DO-NOTHING SCENARIO IN A WORLD THAT'S INCREDIBLY COMPETITIVE IS GOING TO BE -- IS GOING TO BE CHALLENGING. YOU'LL BEGIN TO RECEDE IN TERMS OF YOUR CONVENTION PROFILE, IN TERMS OF THAT ECONOMIC IMPACT.

SO THOSE ARE THE PREPARED REMARKS. I DON'T KNOW -- I'M GOING TO TURN IT OVER TO ERIK, HE'S GOT A FINAL SLIDE TO GO THROUGH, ABTH THEN

WE'LL RAP UP WITH SOME Q ANDA. >> WALSH: THANKS, JOHN.

WILL YOU GO TO THE NEXT SLIDE. THANKS, JOHN.

OBVIOUSLY, MAYOR AND COUNCIL, WE'RE RECOMMENDING WE CONTINUE TO PROCEED WITH THE DUE DILIGENCE AND PLANNING FOR AN EXPANSION OF THE CONVENTION CENTER. AND AS BOTH OF THE -- BOTH MICHAEL AND JOHN TALKED ABOUT, TO CONTINUE TO DEVELOP THAT FEASIBILITY AND BUSINESS CASE FOR AN EXPANSION UP TO 200,000 SQUARE FEET, YOU KNOW, PART OF -- PART OF THE DATA SET THAT REALLY STARTED US ON THIS LARGER EFFORT THAT YOU SAW TWO OR THREE WEEKS AGO WAS THE RECOGNITION THAT BASED ON OUR -- BASED ON OUR CURRENT MARKET POSITION AND VSA DATA THERE HAD BEEN IN THE LAST FIVE YEARS OVER HALF A BILLION DOLLARS WORTH OF CONVENTION BUSINESS THAT WE WEREN'T ABLE TO ACCOMMODATE, AND THEN THEY PROJECTED OVER THE NEXT 10 YEARS WITHOUT PROPER SPACE OR ENOUGH SPACE, THAT WE'D POTENTIALLY LOSE OUT ON ALMOST A BILLION DOLLARS WORTH OF CONVENTION BUSINESS IN THE NEXT 10 YEARS. SO I WANT TO ACCENTUATE A POINT THAT JOHN MADE AT THE END, YOU KNOW, WITH THE GROWTH AND DEVELOPMENT, NOT JUST IN THE REST OF THE PART OF COUNTRY, BUT MORE IMPORTANTLY HERE IN TEXAS, IF WE DON'T PLAN FOR EXPANSION, WE WILL LOSE MARKET SHARE. THAT'S CLEAR. AND I THINK THERE'S A LOT OF EXAMPLES OF THAT IN OTHER TIMES OF FACILITIES.

OUR OPTIONS ARE TO GROW TO MAINTAIN OR GROW TO EXPAND.

AND HOW DO WE PRIORITIZE THAT? OBVIOUSLY, THIS IS A MUCH LARGER VISION THAT WE HAVE. THE CONVENTION CENTER, FOR MANY OF THE REASONS JOHN STATED, IS A DIRECT DRIVER OF PART OF OUR ECONOMY. AND A SIGNIFICANT ONE. SO WE'RE GOING TO CONTINUE THAT FEASIBILITY WORK AND THAT BUSINESS CASE.

WE NEED TO CONTINUE WITH STAKEHOLDER ENGAGEMENT AND WE'VE BEGUN THAT.

THERE'S A LOT MORE THAT NEEDS TO HAPPEN AS WE DEVELOP OUT THAT BUSINESS CASE, BECAUSE THE STAKEHOLDERS THAT ARE GOING TO BE CRITICAL TO THAT PICTURE THAT WE'LL PAINT, WE NEED TO DEVELOP OUR PRELIMINARY FUNDING ANALYSIS, AND THEN I THINK COME BACK TO COUNCIL WITH AN UPDATE.

AND AT THAT UPDATE WITH THE COUNCIL AND FINAL RECOMMENDATION, LAY OUT PROCUREMENT STRATEGIES AND TIMELINES AND THAT SORT.

WE DO WANT TO GO THROUGH THE EFFORT, SIMILAR TO WHAT WE WENT THROUGH WITH THE AIRPORT, TO DETERMINE THE BEST DELIVERY METHOD TYPE OF LARGE-SCALE

[00:30:03]

PARTS OF PROJECT MARBLE. THANKS, MAYOR. >> MAYOR NIRENBERG: THANK YOU VERY MUCH, JOHN AND MIKE FOR THE PRESENTATION, ERIK, FOR THAT EXPLANATION. LET ME JUST START BY ASKING THE OBVIOUS QUESTION, WHEN ARE WE GOING TO START SEEING DOLLARS AND COSTS

ASSOCIATED WITH THESE RENOVATIONS? >> WALSH: SO NOT UNTIL WE KNOW THE SIZE OF THE BUILDING AND, YOU KNOW, CONSTRUCTION COSTS CCOSTS CONTINUE TO MOVE. I DON'T REALLY -- WE'LL TALK ABOUT RANGES AT SOME POINT, BUT WE'RE GOING TO FOLLOW THE SAME TRACK WE DID WITH SIMILAR TO THE AIRPORT DEVELOPMENT WHERE WE HAD A RANGE, AN UP TO, AND THEN IT WASN'T UNTIL WE WENT TO CONTRACT FOR CONSTRUCTION.

BUT THE FUNDING ANALYSIS, FRANKLY, NEEDS TO TAKE INTO CONSIDERATION THE POTENTIAL MOVEMENT, 137,000 SQUARE FOOT BUILDING IS GOING TO COST DIFFERENT THAN A 200 SQUARE FOOT BUILDING. WHAT DO WE NEED IN TERMS OF MARKET SHARE AND WHAT DO WE WANT TO LAND, THAT'S GOING TO BE THE PART OF ENGAGEMENT THAT WE NEED TO GET FROM THE STAKEHOLDERS.

>> MAYOR NIRENBERG: LET ME MAKE A FEW COMMENTEDS AND WE'LL GET RIGHT INTO DISCUSSION. FIRST, I THINK IT'S WORTH STATING AND RESTATING, THE SAN ANTONIO ECONOMY IS BASED ON MUCH MORE THAN JUST THE VISITOR AND HOSPITALITY INDUSTRY. THAT IS A DEMONSTRABLE FACT OVER THE LAST SEVERAL DECADES, WE HAVE DIVERSIFIED, WE HAVE GROWN, WE HAVE BECOME A MAJOR METROPOLITAN WHEN IT COMES TO THE INDUSTRIES AND THE MIX IN OUR ECONOMY. THAT BEING SAID, TOURISM AND HOSPITALITY IS ALSO STILL A BIG DRIVER, AND IT'S ALSO ONE THAT WE TAKE GREAT PRIDE IN, BECAUSE IT SHOWS OUR CITY VERY WELL TO THE WORLD. SO IT'S MY VIEW THAT I THINK WE NEED TO CONTINUE TO DO WHAT WE CAN TO EXPAND AND OWN AS MUCH OF THE MARKET AS WE POSSIBLY CAN, BECAUSE THIS REMAINS A CITY THAT PEOPLE LOVE TO COME TO AND PEOPLE LOVE TO EXPLORE. AND WE NEED TO HAVE PEOPLE EXPLORE AGAIN, AND MANY CASES FOR THE FIRST TIME.

IT ALSO ENHANCES LIFE FOR OUR LOCAL RESIDENTS AS WELL, SO I AM D DEFINITELY IN FAVOR OF CONTINUED WORK ON THIS PLAN.

I DO THINK IT NEEDS TO BE DRIVEN BY, AGAIN, OUR ACHIEVABLE LEVEL OF MARKET SHARE. REALISTICALLY WE WANT TO BE THE BEST, BUT WE ALSO KNOW WE NEED TO WORK WITHIN CERTAIN CONSTRAINTS HERE WITHIN OUR LOCAL COMMUNITY, SO -- BUT WE SHOULDN'T DIMINISH OUR OWN ASPIRATIONS ABOUT THE CONVENTION CENTER AND THE CONVENTION BUSINESS RIGHT NOW JUST BECAUSE WE HAVEN'T SEEN WHAT THE SCOPE OF THESE IMPROVEMENTS MIGHT COST. IF I COULD ASK EITHER MIKE OR JOHN JUST A COUPLE OF QUICK QUESTIONS, SO -- EITHER ONE.

FIRST OF ALL, I'M REALLY PLEASED AND GLAD TO BE WORKING WITH POPULUS.

THEY ARE THE PREPIER GLOBAL DESIGN FIRM AND THEY HAVE A TREMENDOUS AMOUNT OF EXPERIENCE ALREADY IN SAN ANTONIO, SO I'M GOING TO ASK YOU A COUPLE OF QUESTIONS JOHN IN LIGHT OF THAT. YOU KNOW OUR COMMUNITY, OUR ECONOMY, ESPECIALLY THIS INDUSTRY PRETTY WELL HERE ALREADY.

WHEN YOU'RE MAKING RECOMMENDATIONS BASED ON EXHIBIT SPACE AND, YOU KNOW, THE SIZES THAT WE SHOULD BE LOOKING FOR AND THE SCOPE OF IMPROVEMENTS, ARE YOU ALSO TAKING INTO ACCOUNT THE ADDITIONAL ADJACENT SPACE? FOR INSTANCE, BALLROOMS AND MEETING ROOMS WITHIN ADJACENT HOTELS AND POTENTIALLY NEW HOTELS THAT WE MIGHT BE EXPLORING AS PART OF THE SPORTS AND ENTERTAINMENT DISTRICT?

>> YEAH, WE DEFINITELY HAVE LOOKED AT THE ISSUE OF HOTELS THAT SUPPORT A CONVENTION CENTER. IF WE DON'T HAVE A PLACE FOR THE ATTENDEES TO SLEEP, THAT CAUSES CHALLENGES. THE GOOD NEWS IS, WE'VE GOT THREE VERY LARGE HOTELS VERY CLOSE TO THE CONVENTION CENTER.

A NEW ONE GOING UP. WE'VE GOT THE HILTON, A VARIETY OF HOTELS THAT SERVICE THE KOIVE INDUSTRY. WE'VE HAD A LITTLE BIT OF A CHALLENGE IN TERMS OF COMMITTABILITY, I OWN 1,000 ROOM HOTEL, I MAY NOT GIVE YOU 800, I MAY ONLY GIVE YOU 400. THAT'S A TRANSIENT EFFECT. I CAN GET A I HOOKER RATE HIGHER RATE FROM OTHER PIECES OF BUSINESS. THAT CHANGES OVER TIME.

OUR ASSESSMENT HAS BEEN LOOKING AT THE HOTEL EVEN INVENTORY, YOU'RE IN A GOOD POSITION TO LAUNCH THE EXPANSION BUT LET'S ALSO TALK ABOUT THE NEXT BIG HOTEL. WE WANT TO SEE THAT OVER TIME.

WITH RESPECT TO THE SPACE IN THE HOTELS, WE DON'T REALLY COUNT THE MEETING SPACE IN THE HOTELS AS PART OF THE CONVENTION PACKAGE.

REALLY WHAT HAPPENS FROM AN ECONOMIC AND A FINANCIAL PERSPECTIVE FOR THE HOTELS IS THEY NEED TO PROTECT THAT 50,000 SQUARE FEET OF SPACE THEY

[00:35:04]

THAT PURPOSE. >> MAYOR NIRENBERG: SO WHAT I'M HEARING THEN IS THAT THE USABLE SPACE, BALLROOM SPACE, MEETING SPACE WITHIN ADJACENT HOTELS DOES NOT FACTOR INTO HOW OUR CITY OR OTHER CITIES ARE LOOKING TO EXPAND AND HOW MUCH THEY SHOULD EXPAND THEIR CONVENTION CENTER?

>> WELL, LOOK AT IT FROM THE MEETING PLANNER'S PERSPECTIVE AUDIO] BECAUSE THAT'S REALLY GOING TO MAKE THIS WORK.

IF I'M A PHARMA EVENT LOOKING AT BOSTON FOR A HUGE EVENT, I AM DEFINITELY GOING TO GO TO THE WEST AND I'M GOING TO GO TO THE OMNI AND I'M GOING TO SEE IF I CAN MAKE A DEAL TO SEE SOME OF THEIR MEETING AND BALLROOM SPACE. IT'S A PLUS TO HAVE THAT.

BUT WE TYPICALLY -- SINCE WE CAN'T COUNT ON THAT, WE CONDUCT OUR ANALYSIS FOCUSING ON ONLY THOSE SPACES WE CAN CONTROL, SO WE DON'T INCLUDE THE HOTEL SPACE IN ANY OF OUR COMPETITIVE DESTINATIONS.

THERE HAVE BEEN, AND THERE ALWAYS WILL BE CASES, EVEN IN SAN ANTONIO, WHERE YOU'RE LEVERAGING INTO THAT, BUT THAT'S NOT -- THAT'S NOT KIND OF THE IDEAL SITUATION. IT'S A NEED TO FOR THOSE

HIGH-IMPACT, HIGH MEETING SPACE EVENTS. >> MAYOR NIRENBERG: OKAY.

AND IT MAKES MY NEXT QUESTION A LITTLE LESS IMPORTANT THEN, BUT WHERE DOES SAN ANTONIO STAND WITH REGARD TO ADJACENT HOTELS AND SPACES -- FUNCTIONAL STAYSES OUTSIDE OF THE CONVENTION CENTER FOOTPRINT.

>> I WOULD SAY IN TERMS OF THE NUMBER OF LARGE BOX HOTELS YOU HAVE, YOU'RE IN PRETTY GOOD SHAPE. THERE AREN'T A LOT OF MARKETS THAT HAVE THAT MANY LARGE HOTELS WITHIN A SHORT WALKING DISTANCE, SO I CAN SAY WITH CONFIDENCE THAT IF I WERE TO ADD UP THE MEETING SPACE AND BALLROOM SPACE IN THE HOTELS WITHIN A SHORT WALKING DISTANCE OF SAN ANTONIO, YOU'RE IN PRETTY GOOD SHAPE RELATIVE TO THE COMPETITION. I THINK OF DALLAS, THERE'S NOTHING. YOU'VE GOT THE OMNI. THAT'S IT. SO -- BUT THEY HAVE TWO BOOK END HOTELS. SO I THINK THE SPACE IS THERE. TO GO TO MARKET AND SAY TO THE MEETING PLANNER, I KNOW YOU'RE GOING TO BOOK IN FIVE YEARS, I'VE GOT 150,000 SQUARE FOOT OF MEETING SPACE IN MY BACK POCKET AND A BIG BALLROOM, THERE'S THREE HOTELS OVER HERE THAT AREN'T GOING TO RELEASE THAT SPACE YET.

THEY'RE GOING TO WAIT. TRUST US, WE'LL GET AS MUCH AS WE CAN.

THAT'S A TOUGH PACKAGE TO SELL TO, YOU KNOW, MAJOR PHARMA EVENT OR A MAJOR

MEDICAL EVENT. >> MAYOR NIRENBERG: OKAY. >> IT DOES HAPPEN.

IT DOES HAPPEN, BUT IT'S NOT AN IDEAL SALES APPROACH.

>> MAYOR NIRENBERG: WELL, HOPEFULLY -- I SEE MARK AND VSA HERE, SO HOPEFULLY THEY'RE DOING IT AS WELL AS ANYBODY DOES, AND WE HOPE THAT REMAINS THE CASE. BUT, YOU KNOW, THESE ARE AMBITIOUS NUMBERS IN TERMS OF THE EXPANSION, BUT THEY'RE ALSO NOT THE BIGGEST, SO WE ARE GOING TO STILL NEED THAT KIND OF COOPERATION FROM OUR HOTELIERS AND OTHER LARGE VENUES. THANK YOU, ERIK. MY MESSAGE IS KEEP MOVING FORWARD. THE HOSPITALITY AND VISITOR INDUSTRY IS CRITICALLY IMPORTANT FOR US. WE TAKE GREAT PRIDE IN IT AND WE KNOW IT'S GREAT FOR OUR RESIDENTS AS WELL.

SO WE'LL NOW GO TO COUNCILMEMBER ALDARETE GAVITO.

>> GAVITO: THANK YOU, MAYOR. THROUGH SO MUCH FOR THIS PRESENTATION. IT WAS GREAT. I'M ALSO EXCITED ABOUT HAVING A CONVENTION SEN THER THAT CAN ACCOMMODATE MULTIPLE TOP TIER EVENTS, AND OBVIOUSLY, YOU KNOW, WE KNOW THE BENEFITS OF THE CONVENTION CENTER.

I DID LIKE WHAT YOU SAID, JOHN, ABOUT HOW MUCH IT DOES GENERATE FUTURE TOURISM, YOU KNOW, BECAUSE THEN THEY HAVE FAMILIARITY WITH THE CITY, THEY'RE EXCITED ABOUT THE CITY, AND THEN THEY WANT TO COME BACK AND BRING THEIR FAMILIES. I DID HAVE A COUPLE OF QUICK QUESTIONS. ON SLIDE 5 WITH THESE OTHER PEER FACILITY INVESTMENTS, WERE THESE MUNICIPAL -- WERE THESE PAID FOR BY THE LOCAL

GOVERNMENTS SPECIFICALLY, OR BY OTHER MEANS? >> TEXAS HAS A UNIQUE PROGRAM WHERE WE'RE USING THE HOSPITALITY INDUSTRY

TAX IS FED BACK INTO THE PROJECT. >> GAVITO: UH-HUH.

>> SO THIS IS NOT A TAXPAYER FUNDED PROJECT. IT'S REALLY THE TAXES

GENERATED FROM THE VISITORS. >> GAVITO: FROM THAT, RIGHT. OKAY. ON SLIDE 11, I WAS JUST CURIOUS, WHAT CONTRIBUTED TO THAT DIP IN 2016? I UNDERSTAND ALL THE

COVID DIPS, BUT I WAS CURIOUS ABOUT 2016. >> 2016, YEAH, THAT'S A GOOD QUESTION. AND I DON'T HAVE THE SPECIFIC ANSWER.

AND I WOULD ANSWER IT JUST THIS WAY: YOU CAN SEE 2016, WE HAD THE

EXPAN -- >> IT'S THE EXPANSION CONTRIBUTED TO THAT DIP.

>> GAVITO: OKAY. THE EXPANSION? >> OKAY.

GOT IT. THANKS, LORI. >> THE CHALLENGE IS, IF I GO TO YOU AN EVENT PLANNER AND I SAID COME TO SAN ANTONIO, WE'RE

[00:40:02]

>> GAVITO: I SEE. ON SLIDE 12, YOU KNOW, Y'ALL HAVE THE OCCUPANCY BY EVENT TYPES. IS THIS -- IS THIS KIND OF THE PREFERRED RATIO, OR IS THERE SOMETHING ELSE WE'D WANT TO SEE MORE OF OR LESS OF?

>> I WOULD TELL YOU FROM THE PERSPECTIVE OF ECONOMIC IMPACT IN BRINGING NEW PEOPLE, NEW BUSINESS LEADERS TO THE COMMUNITY, THIS IS A

GREAT MIX. >> GAVITO: OKAY. >> WE DO HAVE A -- IT'S FAIRLY HEALTHY COMPONENT OF CONSUMER SHOWS. YOU CAN SEE THE LIGHT BLUE THERE. WE DO HAVE SOME OTHER MEETING AND SPORTING EVENTS, SPORTS EVENTS GENERATE ECONOMIC IMPACT AS WELL, THEY'RE JUST NOT THE HIGH SPEND EVENTS. SO I WILL -- I WILL TELL YOU, IF I COULD GO TO A LOT OF MARKETS AND THEY WOULD LOVE TO HAVE THIS MIX OF BUSINESS.

>> GAVITO: OKAY. NO, THAT'S GOOD TO KNOW. >> YOU'RE DOING PRETTY

WELL. >> GAVITO: ONE OTHER QUESTION ON THAT.

IN OTHER CITIES THAT HAVE MADE COMPARABLE INVESTMENTS, HOW MUCH DID THE IMPROVEMENTS TO THEIR CONVENTION CENTERS CONTRIBUTE TO THEIR ECONOMIC GROWTH? DO WE HAVE NUMBERS AROUND THAT?

>> I DON'T HAVE THEM WITH ME. WE DO STUDY IN OTHER WORDS, WE MAKE AN INVESTMENT OF $350 MILLION, WHAT HAPPENS OVERTIME TO ECONOMIC IMPACT? I'LL BE CANDID WITH YOU.

SOMETIMES IT'S -- WE GOT BACK TO WHERE WE WERE BEFORE.

WE'RE DOING A LOT OF WORK IN MARKETS LIKE CINCINNATI THAT REALLY MOVED OUT OF THE INDUSTRY, AND THEIR EXPANSION, RIGHT, THEIR IMPROVEMENT PROJECT, GOT THEM BACK TO WHERE THEY WERE BEFORE.

AND THE REALITY IS, WE'RE IN A CONVENTION INDUSTRY THAT GROWS AT 1 OR 2% ANNUALLY. THIS IS NOT A SUPER HYPERGROWTH INDUSTRY.

AT THE SAME TIME, OUR COMPETITORS ARE INVESTING SO MUCH MONEY, SO EVERY NEW EVENT I GET, I'M PROBABLY TAKING FROM A COMPETITOR.

AND SO IN A LOT OF MARKETS, WE DO THESE KIND OF INVESTMENTS JUST TO HOLD OUR MARKET SHARE. YOU'RE A LITTLE DIFFERENT THAN CINCINNATI.

YOU'RE SAN ANTONIO. I THINK YOU'RE UNIQUE EVEN WITHIN THE STATE OF TEXAS, IN TERMS OF THE DESIRABILITY AS A CONVENTION DESTINATION, SO WE'RE FAIRLY COMFORTABLE PROJECTING A MATERIAL INCREASE IN BUSINESS. AND WE SEE THIS IN A SAN DIEGO, A LITTLE BIT IN A LOS ANGELES, THOSE MARKETS WE'RE SEEING A PRETTY GOOD JUMP

POSTEXPANSION RELEVANT TO THE INVESTMENT MADE. >> GAVITO: GOOD.

I FEEL FOR MY COLLEAGUES AND I TO HAVE THAT NUMBER, OR AT LEAST A PROJECTED NUMBER, BECAUSE, YOU KNOW, OUR RESIDENTS ARE GOING TO READ ABOUT THIS IN THE PAPER AND I THINK THAT IT'S IMPORTANT FOR US TO HAVE THE DATA TO SAY, HEY, THIS IS GOING TO, YOU KNOW -- WE'LL POTENTIALLY GROW OUR ECONOMIC IMPACT BY X PERCENT VERSUS POTENTIALLY STAYING THE SAME, YOU KNOW, BECAUSE I THINK THAT THAT'S GOING

TO BE IMPORTANT FOR THEM TO KNOW. >> YEAH.

WE HAVE SOME REALLY GOOD RESEARCH FOR YOU ON THAT THAT SHOWS WHEN A MARKET INVESTED IN A CONVENTION CENTER AND/OR AHEAD QUARTER HOTEL, YOU CAN SEE THE BUMP. WE'LL SHARE THAT WITH YOU.

>> WALSH: AND COUNCILWOMAN, IN THE FINAL FEASIBILITY AND MARKET ANALYSIS, WE WILL HAVE AN ECONOMIC IMPACT ANALYSIS OF THE POTENTIAL INVESTMENT, SO THAT YOU SEE THE RETURN. WE ALL SEE THE RETURN ON

INVESTMENT IN WHAT'S EXPECTED. >> GAVITO: PERFECT.

YEAH. AND I THINK THAT TYPE OF DATA IS GOING TO BE IMPORTANT FOR US TO SHARE WITH OUR RESIDENTS, OBVIOUSLY, BECAUSE THIS CONVENTION CENTER ALSO BELONGS TO THEM. YOU KNOW, I'M -- OVERALL I'M VERY SUPPORTIVE OF THIS PROJECT AND THE ECONOMIC IMPACT IT WILL HAVE ON THE CITY, AND LIKE THE MAYOR, I'M LOOKING FORWARD TO THE FUNDING ANALYSIS, WHEN THAT'S READY. THANKS SO MUCH.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER ALDARETE GAVITO.

COUNCI COUNCILMEMBER CABELLO HAVRDA.

>> HAVRDA: THANK YOU, MAYOR. THANK YOU FOR WALKING US THROUGH THE PRESENTATION. I THINK THERE'S A LOT TO THINK ABOUT WITH THE EXPANSION CONCEPT, CONVENTIONS AND TOURISM ARE OBVIOUSLY REALLY VITAL TO KEEP OUR CITY RUNNING AND THEY'RE A LIFELINE FOR OUR ARTS COMMUNITY, THAID EAR ALSO A BIG PART OF WHAT MAKES SAN ANTONIO SAN ANTONIO, ALL HAVE HEARD SO MANY STORIES ABOUT PEOPLE COMING TO CONVENTIONS HERE AND WANTING TO COME BACK LATER FOR VACATIONS. I HAVE PEOPLE IN MY OWN NEIGHBORHOOD THAT CAME TO A KOIVE CONVENTION HERE AND THEN WANTED TO MOVE HERE.

IT'S A PRETTY BIG IMPACT ON PEOPLE. BUT AT THE SAME TIME, I UNDERSTAND THE NEED TO KEEP UP WITH TRENDS AND BE COMPETITIVE.

AND SO I THINK THAT'S -- I APPRECIATE THAT YOU'RE KEEPING THAT IN MIND IN SUCH A RAPIDLY CHANGING MARKET. I THINK IT'S REALLY IMPORTANT TO IDENTIFY AND ADDRESS POTENTIAL CHALLENGES AS WE GO -- AS WE GO FORWARD. ERIK MENTIONED THE ECONOMIC IMPACT ANALYSIS, I THINK THAT'S VITAL, AND I THINK, YOU KNOW, WE WANT TO SEE THAT.

BUT IT'S NOT JUST, I THINK, ABOUT DRAWING BIGGER CONVENTIONS.

YOU MENTIONED THE CONVENTION CENTER SUPPORTS OUR OVERALL TOURISM BRAND, AND I COULDN'T AGREE WITH YOU MORE.

I THINK IT'S ABOUT SECURING THE LONG-TERM SUCCESS OF OUR TOURISM AND HOSPITALITY INDUSTRY AND IT HAS A MAJOR RIPPLE EFFECT ON OUR FULL ECONOMY. AND IT ALSO GOES HAND-IN-HAND WITH OUR AIRPORT EXPANSION, A LOT OF DIFFERENT THINGS WE'RE DOING IN THE CITY, INCLUDING A DEEP AND EQUITABLE INVESTMENT IN TRANSIT ORIENTED

[00:45:06]

CULTURAL RELEVANCE, I MENTIONED, YOU KNOW, JUST THE -- MAKING SURE THAT WE'RE IDENTIFYING THAT AND SHOWING WHO WE ARE, THAT THIS EXPANSION AS WE MOVE FORWARD AND THE COMPONENTS OF IT ARE -- ARE CULTURALLY RELEVANT TO SAN ANTONIO. I THINK THAT'S REALLY IMPORTANT.

THAT INCLUDES OUR MARKETING AND -- AND JUST THE PLACE ITSELF, SHOWING THAT, YOU KNOW, WE ARE WHO WE ARE AND BEING EVIDENT IN THAT.

AND THEN, OF COURSE, TYING IT INTO WHAT COULD BE A LARGER SPORTS AND ENTERTAINMENT DISTRICT, I THINK THAT'S GOING TO BE REALLY IMPORTANT.

I ALSO WANT TO MENTION THAT I THINK THIS PROJECT COULD CREATE JOBS AND OPPORTUNITIES FOR THOSE THAT LIVE HERE, MAKING SURE THAT THOSE BENEFITS ARE SHARED BROADLY AND IT MEANS PRIORITIZING LOCAL HIRING, SUPPORTING MINORITY AND WOMEN-OWNED BUSINESSES AND INCLUDING PRIORITIZING OUR SMALL BUSINESSES TO ENSURE THAT THIS GROWTH CENTERS THEM.

THEY'RE THE HARYLT AND HEART AND SOUL OF WHAT MAKES SAN ANTONIO SO SPECIAL. OUR SMALL BUSINESS EMPLOYEES MAKE UP THE MAJORITY OF OUR RESIDENTS, SO IT'S VITAL TO OUR ECONOMY THAT WE BRING THEM INTO THE DESIGN PHASE AND ENSURE THAT ANY CHANGES REQUIRED FOR THIS DEVELOPMENT DON'T HINDER THEIR ABILITY TO THRIVE, AND HOPEFULLY ENCOURAGE MORE SMALL BUSINESS ENTREPRENEURSHIP.

ON THIS COUNCIL WE HAVE A LOT OF LOVE AND RESPECT AND ARE TRYING OUR BEST TO HELP SMALL BUSINESSES, AND IT'S IN PROJECTS LIKE THIS WHERE WE NEED TO SHOW THAT, WE NEED TO PUT OUR MONEY WHERE OUR MOUTH IS, AS IT WERE.

SO ANYWAY, I'M SUPPORTIVE. I'M EXCITED ABOUT IT, BUT I THINK THERE'S A LOT OF CHALLENGES. WE NEED THOUGH MAKE SURE THAT WE'RE KEEPING IN MIND AS WE MOVE FORWARD AND, OF COURSE, KEEPING THE COMMUNITY INVOLVED IN EVERY STEP OF THE WAY. THANKS, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER CABELLO HAVRDA.

COUNCILMEMBER COURAGE? >> COURAGE: THANK YOU, MAYOR.

EARLY ON IN THE PRESENTATION, I WAS LOOKING AT THE SLIDE, I GUESS, ON OPTION 1 THAT WAS KIND OF LAYING OUT HOW THE PROPERTY COULD BE REDEVELOPED, AND IT CAUSED ME TO THINK IF WE'RE GOING TO BE EXPANDING THE CONVENTION OPEN AREA FOR EXPOSITIONS, WHAT WHATEVER, WHAT HAPPENS TO THE COCK COCKRELL THEATER IN THAT PLAN?

>> LILA COCKRELL THEATER WILL NOT B ALTERED IN ANY WAY.

PART OF THE LAST EXPANSION, IF WE WANT TO GO TO THAT DIAGRAM, I DON'T KNOW WE CAN SEE IT VERY CLEARLY IN THE DIAGRAM, SO ON THE LEFT-HAND SIDE WHERE THAT YELLOW SHAPE IS JUST TO THE UPPER SIDE OF THAT IS THE LILA COCKRELL THEATER. SO WHEN WIS FORTUNATE TO LEAD THE DESIGN ON THE LAST EXPANSION, THAT USED TO BE AN ALLEYWAY BETWEEN THE HOTEL AND THE CONVENTION CENTER EXHIBITION SPACE.

WE CONVERTED THAT TO FRONT OF HOUSE SPACE. WE BUILT AN OUTDOOR CAFE OUT THERE, WE ACTUALLY OPENED UP ALONG THE RIVER, WE BUILT THE NEW ENTRY AND WE OPENED UP THE MURAL THAT WAS INSIDE OF THE OLD CONVENTION CENTER, WE LEFT IT THERE IN PLACE. THERE ARE WERE A LOT OF THINGS WE INVESTED IN IN THAT LOCATION SPECIFICALLY.

WE'RE TRYING TO KEEP ALL OF THE CONVENTION EXPANSION SPACE TO THE SOUTH OF THE LOBBY AND BRIDGE OVER THE RIVER. WITH MORE SQUARE FOOTAGE, WE'RE GOING TO LOOK AT EVERY OPPORTUNITY TO GET THAT SQUARE FOOTAGE.

THAT WILL BE THE THANK YOU. I WANT TO HAVE AN UNDERSTANDING OF WHAT THE IMPACT WILL BE IN THE CITY WITH THE EXPANSION, AND I IMAGINE THAT YOU RAND YOUR COMPANY HAVE LOOKED AT WHAT IS THE ENTIRE CONVENTION MARKET IN THE UNITED STATES? IN OTHER WORDS, WHICH ORGANIZATIONS HAVE CONVENTIONS OR EXPOSITIONS OR HAVE TRADE SHOWS? AND WHERE THEY USUALLY HAVE THOSE OR WHEN THEY USUALLY HAVE THEM AND, YOU KNOW, WHAT ARE THE NUMBERS OF PARTICIPANTS THEY'RE GOING TO HAVE.

SO HAVING THAT INFORMATION TOGETHER, CAN WE THEN TARGET HOW WE COULD CREATE TWO DIFFERENT CONVENTIONS GOING ON AT THE SAME TIME OR THREE DIFFERENT CONVENTIONS? OBVIOUSLY, THE TIME OF YEAR THEY'RE DOING IT, THE MONTH OF YEAR THEY USUALLY DO IT.

THEY DON'T OFTEN CHANGE THOSE THINGS. THEY STAY THE SAME FOR YEAR AFTER YEAR AFTER YEAR. SO IF WE START SAYING WE WANT TO CREATE TWO VENUES FOR LARGE OPERATIONS, YOU KNOW, I'M JUST WONDERING WHAT'S THE CHALLENGE OF FINDING THE RIGHT GROUP TO FIT INTO THE RIGHT SPACE AT THE RIGHT TIME OF YEAR WITH WHAT WE'RE GOING TO BE DOING? IS THAT PART OF THE PLANNING THAT YOU WORK WITH WHERE YOU WORK WITH OUR SAN ANTONIO TOURISM PROGRAM TO FIND THOSE PEOPLE THAT WE WANT TO

[00:50:03]

ATTRACT HERE? >> ABSOLUTELY. YOU'RE KIND OF GETTING AT THIS NOTION OF MARKET OR CUSTOMER SUPPORT FOR A PROGRAM OF INVESTMENT.

THIS ISN'T JUST AN INTERESTING IDEA, LET'S GO DO THIS, AND WE WORK WITH VISIT SAN ANTONIO AND PATRICIA'S DEPARTMENT TO SURVEY ALMOST 150 MEETING PLANNERS. WE GOT THEIR INPUT, AND WHWE ASKED THEM THOSE EXACT QUESTIONS, WHEN IS YOUR EVENT, HOW MANY ATTENDEES, HOW MANY HOTEL ROOMS DO YOU NEED IN THE ROOM BLOCK, HOW MUCH SPACE, MEETING SPACE, EXHIBIT SPACE, BALLROOM SPACE, OUTDOOR TRENDS, WE ASK THEM ABOUT THAT.

SO WHAT WE'RE ABLE TO DO FROM THE RESEARCH TO CUSTOMERS SPECIFIC TO SAN ANTONIO IS START CREATING THOSE MULTIPLE EVENT ENVIRONMENTS.

IDEALLY, ALL WITHIN ONE BUILDING. WE CAN DO THIS TO CREATE JUST A REALLY VIBRANT SETTING OF ONE EVENT MOVES OUT, ONE EVENT MOVES IN, AND WE CONTINUE THAT PATTERN. BUT EVERYTHING WE'RE TALKING AT HERE, ALL THE RECOMMENDATIONS WE'RE DEVELOPING ARE BASED ON THAT MARKET RESEARCH, WORKING WITH YOUR TEAM HERE IN SAN ANTONIO.

>> COURAGE: WHAT ABOUT EXPANDING OUR MARKET? YOU KNOW, THERE'S A LOT OF GROUPS THAT WON'T COME HERE OR HAVEN'T COME HERE FOR YEARS BUT THEY GO OTHER PLACES BECAUSE EITHER WE DIDN'T HAVE ENOUGH HOTEL ROOMS OR WE DIDN'T HAVE ENOUGH EXHIBIT SPACE OR WE DIDN'T HAVE ENOUGH CONFERENCE SPACE OR WHATEVER. SO WITH THE PLANS YOU'RE WORKING ON, DOES THAT OPEN UP OTHER AVENUES FOR US TO BRING OTHERS IN THAT HAVEN'T BEEN HERE INSTEAD OF RELYING ON THE ONES WHO COME EVERY THREE

OR FOUR, FIVE YEARS? >> YEAH, I LOVE THAT. SO WHEN WE DO THE RESEARCH, WE REALLY DON'T CARE WHO YOUR CUSTOMERS ARE TODAY.

WE ACTUALLY SAY, WE'RE GOING TO START WITH THIS SMALL EVENT OVER HERE, WE OR GOING TO GO TO AN EVENT THAT NEEDS A MILLION SQUARE FEET OF CONVENTION SPACE. I WANT TO KNOW IF THEY'RE WILLING TO COME HERE.

WE PUT THE BLINDERS ON RELATIVE TO WHAT YOU'VE DONE IN THE PAST AND WE ASK THE QUESTION, WHAT CAN YOU DO IN THE FUTURE? I THINK THERE ARE MARKETS -- YOU KNOW, MARK AND HIS TEAM KNOW BETTER THAN I DO, THAT WE CAN CONTINUE TO MOVE INTO. THEIR LOST BUSINESS TO US IS VERY ROBUST, BUT OBVIOUSLY CONTINUED MOVEMENT IN THE CORPORATE TRADE SHOWS, CORPORATE CONVENTIONS, PHARMA, FOR EXAMPLE.

WE DO A HECK OF A LOT OF ASSOCIATION EVENTS. THERE AREN'T A LOT OF ASSOCIATION EVENTS WE CAN'T DO, BUT THERE ARE CERTAIN SEGMENTS THAT WE WOULD LIKE TO CONTINUE TO MOVE IN, MEDICAL, TECH, PHARMA, ET CETERA.

>> COURAGE: I SEE YOUR PARTNER WANTS TO THROW IN A WORD HERE.

>> IF I COULD JUST ADD SOME ADDITIONAL CONTEXT. WE'VE HAD TO TURN AWAY MORE THAN $700 MILLION OF BUSINESS IN THE PAST SIX YEARS BECAUSE OUR CONVENTION CENTER IS TOO SMALL. SO I'LL GIVE YOU SOME REAL-LIFE EXAMPLES. ACE HARDWARE HAD THEIR SPRING MEETING HERE IN 2023. THEY WOULD LOVE TO BRING THEIR FALL TRADE SHOW HERE, BUT WE'RE TOO SMALL TO CURRENTLY HOLD IT. THAT'S AROUND 4,000, 5,000 ROOMS ON PEAK NIGHT, ABOUT 15,000 INDIVIDUALS.

THE AMERICAN ACADEMY OF OPHTHALMOLOGY WHICH IS A MAJOR MEDICAL TRADE SHOW HAS SHOWN INTEREST IN SAN ANTONIO CURRENTLY WITHOUT A 700,000 SQUARE FOOT EXHIBIT HALL, WE'RE TOO SMALL. THERE'S A GROUP CALLED AUTO DESK, WHICH HAS SHOWN INTEREST, SENT US LEAD BUT WE HAD TO TURN BUSINESS AWAY BECAUSE WE'RE JUST NOT COMPETITIVE RIGHT NOW.

>> COURAGE: I'M GOING TO INTERRUPT YOU THERE. I'M SURE THERE ARE SOME OTHERS, AND I THINK THOSE ARE GOOD EXAMPLES FOR YOU TO BRING FORWARD, BUT I'VE GOT A LIMITED AMOUNT OF TIME, I HAD A FEW OTHER THINGS I WANTED TO BRING UP. SO THANK YOU FOR THAT. WHEN WE WERE TALKING ABOUT THE EXPANSION AND TRYING TO CREATE MORE EXHIBITION SPACE AND THINGS LIKE THAT, BUT WE ALSO TALKED ABOUT THE RETURN TO THE CITY ON THE EXPANSION, WHAT OTHER ADDITIONAL REVENUE WILL THE CITY GET OUT OF THIS, BUT BY YOUR ESTIMATE ON ATTRACTING OTHERS OR GENERATING MORE OF AN ECONOMIC RETURN TO THE CITY, THE MAYOR TALKED ABOUT, WELL, WHAT HAPPENS IF WE HAVE ANOTHER NICE HOTEL RIGHT ACROSS THE STREET.

BUT HAVE YOU ALSO TAKEN INTO CONSIDERATION WE'RE BUILDING A BASEBALL STADIUM DOWNTOWN -- OR PRESUMABLY, WE ARE, IT LOOKS LIKE IN THAT DIRECTION. WHAT ABOUT IF WE ADD A SPORTS ARENA NEARBY? OR WHAT ABOUT IF WE ADD A NEW CROSSWAY OVER SCW 1604 TO CONNECT THE EAST SIDE OR DOWNTOWN. I DIDN'T HEAR YOU TALK ANYTHING ABOUT THE ALAMODOME EXPANSION TO MAKE IT MORE USEFUL, OR THE AIRPORT EXPANSION, WHICH WE HOPE WILL ATTRACT PEOPLE. SO, YOU KNOW, DO ALL OF THOSE HAVE A POTENTIAL IMPACT THAT CAN INCREASE WHAT YOU'RE TELLING US TODAY ON OUR EXPANSION EFFORTS, BECAUSE I WANT TO MAKE SURE THAT WHAT WE DO IS GOING TO HAVE ENOUGH OF A RETURN TO THE CITY, AND, YOU KNOW, YOUR ESTIMATES SEEM TO BE PRETTY LIMITED ON THE CONVENTION CENTER.

BUT ALL THESE OTHER FACTORS WE'RE WORKING ON, WHICH ARE GOING TO COST THE CITY OF SAN ANTONIO MAYBE A BILLION OR TWO TO DO ALL THIS OTHER WORK,

[00:55:03]

SO I GUESS I'M JUST SAYING, TAKE SOME OF THAT INTO CONSIDERATION AND LET US KNOW HOW MUCH BIGGER THE RETURN COULD BE TO THE CITY AS FAR AS MORE CONVENTIONS COMING AND WHAT WE'RE -- YOU KNOW, WHAT WOULD THAT MEAN TO US. BUT THE OTHER PART I REALLY HAVE IS FOR ERIK.

ERIK, I KNOW WE LOOK AT OUR ANNUAL HOTEL TAX RETURN TO THE CITY, THE SALES TAX, ALCOHOL TAX. WE LOOK AT RETAIL EXPENDITURE, WE LOOK AT MONEY THAT GETS SPENT ON RECREATIONAL ACTIVITIES, WHETHER IT'S AT SEAWORLD OR FIESTA TEXAS OR ANYPLACE ELSE, AND WE TALK ABOUT THE IMPACT OF TOURISM TO THE CITY HERE. AND I'M WONDERING WITH THIS GROWTH THAT WE'RE PLANNING ON SPENDING MONEY FOR TO INCREASE THIS WHOLE PROJECT MARVEL IDEAL THAT WE'VE BEEN LOOKING AT HOW ARE WE GOING TO ASSESS WHAT WE GET BACK OUT OF IT AFTER WE PUT BACK INTO IT THESE BILLIONS OF DOLLARS? AND I KNOW THAT'S, YOU KNOW, LOOKING AT A CRYSTAL BALL MAYBE, BUT I'D LIKE TO SEE A LITTLE BIT MORE OF THAT AS WE CONTINUE FORWARD, BECAUSE EVERY PART OF THIS, FROM THE AIRPORT TO THE CONVENTION CENTER TO ADDING THE BALLPARK, TO ADDING ARENA, TO REDOING THE ALAMODOME, ALL OF THOSE HAVE PRICE TAGS THAT ARE ADDING UP.

AND WHAT IS THE GENERAL RETURN GOING TO BE TO THE CITY? AND CAN THAT RETURN HELP US WITH THE PROBLEMS PEOPLE IN THE CITY HAVE, JUST EARNING A LIVING AND TAKING CARE OF THEIR ECONOMIC NEEDS AND HOW DOES THAT TRANSFEROVER TIME? SO I'D LIKE TO HER MORE FROM YOUR DEPARTMENT OVER THAT AS WE CONTINUE TO THESE TALKS.

. THANK YOU. >> WALSH: MAYOR, I'LL JUST -- JUST REAL QUICK, MAYOR. AND COUNCILMAN, YOU RAISE THE -- THAT BROAD ISSUE WHEN WE TALKED SEVERAL WEEKS AGO ABOUT THE LARGER VISION. AND UNDOUBTEDLY THAT'S WORK THAT WE'RE GOING TO CONTINUE TO DO. AND I THINK YOU'RE ABSOLUTELY RIGHT.

THE CONDITIONS THAT WE ASK THESE EXPERTS TO DO IS HELP US DEVELOP THE MARKETABILITY AND THE FEASIBILITY IN A PROGRAM BY PROGRAM, AND WE DO HAVE TO LOOK AT IT IN TERMS OF A TOTAL IMPACT. AND THAT'S WORK WE HAVEN'T DONE, BUT IT IS SOMETHING THAT -- I KNOW YOU BROUGHT UP TWO WEEKS AGO, THAT WE WILL NEED TO DO AS WE GO THROUGH THIS PROCESS -- THIS PROJECT.

AND BE ABLE TO TRANSLATE IT SO THAT WE CAN COMMUNICATE BOTH TO THE GOVERNING BODY OF THIS ORGANIZATION, BUT ALSO THE PUBLIC WHAT THE BENEFIT IS TO THIS -- AND THE IMPACT. UNDOUBTEDLY IF WE CONTINUE TO GROW, WHETHER THEY'RE VISITORS OR THEY'RE EXPANDED RETAIL OR ACTIVITY, THEN THAT HAS A DIRECT IMPACT ON OUR SALES TAX.

AND OUR SALES TAX IS ONE OF OUR ONE OF OUR THREE MAJOR REVENUE SOURCES THAT HELPS FUND OUR BASIC SERVICES. AS WE CONTINUE TO GROW, WE'LL WANT TO MAKE SURE THAT'S ON A PATH THAT ALLOWS US TO BE ABLE TO ADDRESS THE QUALITY OF LIFE AND PUBLIC SAFETY AND INFRASTRUCTURE ISSUES THAT THE COMMUNITY HAS. BUT THAT'S WORK THAT WE'RE CERTAINLY MINDFUL OF, AND I'M SURE YOU WILL REMIND US OF THAT AS WE GO THROUGH THIS, AND THE REST OF THE COUNCIL, BUT WE WILL NEED TO DO THAT AND PRESENT THAT TO

COUNCIL. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER

COURAGE. COUNCILMEMBER VIAGRAN? >> VIAGRAN: THANK YOU, MAYOR. THANK YOU NOR FOR THE PRESENTATION.

AND I USED TO WORK IN THIS INDUSTRY, SO I KNOW HOW IMPORTANT IT IS THAT WE COMPETE. YOU KNOW, MARK HAILS FROM A SMALL CITY CALLED CHICAGO, SO I'M EXPECTING HIM TO BRING A LOT OF THOSE CHALLENGE CONVENTIONS AND SHOWS DOWN TO SAN ANTONIO. SO I THINK THIS IS NECESSARY AND NEEDED. I DO AGREE WITH MY COUNCIL COLLEAGUE THAT WE DO NEED TO LOOK AT THAT BIGGER PICTURE IN TERMS OF WHAT WE HAVE PLANNED FOR SPORTS AND ENTERTAINMENT DISTRICT, AND WHAT WE HAVE PLANNED FOR PROJECT -- I CALL IT PROJECT M. BUT I THINK WHEN WE LOOK AT PRIORITIES, I THINK FOR THE RESIDENTS, IT'S GOING TO BE ARENA, IT'S GOING TO BE THAT EAST CONNECTOR, IT'S GOING TO BE THE EXPANSION BECAUSE THAT CONVENTION CENTER EXPANSION IS KEY. BECAUSE WHEN THEY GO DOWN THERE FOR THE GAMES, WHETHER IT'S BASEBALL OR A BASKETBALL GAME, THEY'RE GOING TO SEE THIS IS WHERE THE TRADE SHOWS HAPPEN, THIS IS WHERE

[01:00:02]

SO I THINK -- I THINK WE STILL NEED TO ADDRESS THAT KEY, ERIK, AND I DON'T KNOW HOW WE CAN DO THAT, IF THIS IS SOMETHING WE ALL COME TOGETHER, BUT I THINK THE TIME IS NOW TO GET OUR STAKEHOLDERS TOGETHER, CENTRO, VISIT SAN ANTONIO, THE CITY, AND REALLY HAVE THAT CONVERSATION ABOUT WHAT WE DO WITH THE HEMISFAIR, LA VILLITA, THAT WHOLE DOUBT DOWNTOWN AREA AND HOW WE LOOK AT THAT PARKING FACILITY.

I DON'T WANT US TO WORK IN SILOS, AND I FEEL LIKE THERE'S A TENDENCY TO SOMETIMES DO THAT, BECAUSE WE START TALKING ABOUT JUST CONVENTIONS.

AND CONVENTIONS ARE IMPORTANT IN KEY, BUT WE KIND OF LIKE THE SLIDE SHOW, -- THE SLIDE YOU BROUGHT UP WITH OUR DIFFERENT ASPECTS OF WHAT WE HAVE GOING ON AT THE CONVENTION CENTER, THERE'S TONS OF TRADE SHOWS. THERE'S TONS OF LOCAL EVENTS AND MARK KNOWS THIS, THE GALAS AND THE DINNERS AND THE DANCING -- AND THE THINGS THAT ARE HOSTED THERE. SO WE NEED TO BE ABLE TO COORDINATE THAT AND TO BE VERY STRATEGIC WITH THE SPACE. I THINK KEY IS MORE SPACE. I THINK -- I'M -- I THINK THERE'S SPACE RIGHT NOW THAT WE CAN CONVERT INTO MEETING SPACE THAT IS JUST EMPTY SPACE OR HALLWAYS THAT WE WALK THROUGH. I REMEMBER THE CONVENTION CENTER WHEN IT WAS THE HENRY B. WITH THE OLD PART, AND I FELT LIKE IF YOU WERE A CERTAIN HEIGHT, YOU COULDN'T GET INTO SOME ROOMS OR YOU WERE DUCKING. AND NOW IT'S JUST -- IT'S INCREDIBLE, THE STARS AT NIGHT BALLROOM IS THE REASON I WANTED TO WORK WITH VISIT SAN ANTONIO, BECAUSE I THOUGHT TO MYSELF, I WANT TO BRING PEOPLE HERE TO THIS CONVENTION CENTER TO EXPERIENCE THIS. AND WE JUST NEED TO MAKE SURE THAT WE -- THAT OUR COMMUNITY AS A WHOLE UNDERSTANDS HOW CRITICAL AND KEY THIS EXPANSION IS TO EVERYTHING THAT WE WANT TO DO DOWNTOWN RIGHT NOW. SO IF IF WE COULD JUST TRY AND HAVE MORE PRESENTATIONS THAT ADDRESS OUR PARKING ISSUES AND HOW WE'RE GOING TO ADDRESS OUR CURRENT GARAGES AND THE FACT THAT WE DON'T HAVE THE TECHNOLOGY THAT SOME OTHER CITIES DO HAVE THAT LET YOU KNOW EXACTLY WHAT SPACES ARE FREE AND ON WHAT FLOORS OF A MULTI-LEVEL GARAGE. SO THANK YOU SO MUCH FOR THE PRESENTATION. I LOOK FORWARD TO GETTING THOSE NUMBERS.

ERIK, THE ONLY QUESTION I HAVE FOR YOU IS WHAT IS THE TIMELINE THAT WE WILL GET THE ACTUAL NUMBER AMOUNT TO GET THIS DONE? WILL IT BE JANUARY,

FEBRUARY? >> WALSH: I THINK WE NEED TO BE A LITTLE BIT FURTHER ALONG ON THE FEASIBILITY ASPECTS OF THE PROJECTS WE PRESENTED TWO WEEKS AGO.

THE OTHER ISSUE WE TALKED ABOUT TWO WEEKS AGO WAS THAT WE'RE DOING THE WORK ON ESTIMATE ON INFRASTRUCTURE TO INCLUDE PARKING. THE ALAMODOME FEASIBILITY.

PART OF THE WORK THAT WE'RE DOING BASED ON THE LAST MEETING IS DEVELOPING WHAT A FUNDING -- POTENTIAL FUNDING PLAN COULD BE ALONG WITH AN MOU WITH THE SPURS AND THE COUNTY. ALL THOSE THINGS HAVE TO HAPPEN AND THEY'RE ALL KIND OF INTERRELATED. SO WHEN I THINK OF A NUMBER, I THINK OF HOW THAT NUMBER IMPACTS ALL THOSE THINGS. THEY'RE NOT INDEPENDENT AND THEY ALL RELY UPON EACH OTHER SO I THINK AS WE GET INTO EARLY NEXT YEAR, MID-SPRING, WE SHOULD HAVE

AN IDEA. >> VIAGRAN: CAN I GET END OF FEBRUARY, POSSIBLY? IT DOESN'T HAVE TO BE A RANGE BUT IF YOU COULD SAY, YOU KNOW, NO MORE THAN THIS

[01:05:01]

AMOUNT OR, YOU KNOW, AT LEAST THIS AMOUNT. >> WALSH: SO I COMPLETELY HEAR YOUR SENSE OF URGENCY AND YOU'RE CONVEYING IT EFFECTIVELY ACROSS THE ROOM.

WE'RE GOING TO WORK DILIGENTLY BUT I WANT TO MAKE SURE THAT WE KEEP THE COUNCIL UPDATED ON ALL THOSE MOVING PIECES. WE WANT TO MAKE SURE WE HAVE AN ACCURATE PICTURE. AND THEY WILL PROBABLY BE RANGES.

AND I THINK THERE WILL BE A NUMBER OF UPDATES WILL BE GIVEN TO COUNCIL CLOSER TO

YOUR TARGET DATE. >> VIAGRAN: THANK YOU. AND JUST BECAUSE THE INDUSTRY MOVES THE WAY I KNOW THE INDUSTRY DOES AND WE HAVE GROUPS THAT, YOU KNOW, PLAN FIVE YEARS IN ADVANCE FOR THEIR CONVENTIONS.

I LIKE TO COMMUNICATE TO THE INDUSTRY THAT WE'RE MOVING IN THE RIGHT DIRECTION AND THIS ISN'T JUST, YOU KNOW, US TALKING ABOUT ONE DAY. THAT WE HAVE DEFINITE TIMELINES. I'M IMPRESSED WITH LORI'S PRESENTATION BEFORE THE BREAK ABOUT, YOU KNOW, THE 1-5, THE 5-10 YEARS, I THINK THAT'S WHAT WE NEED TO SEE

MOVING FORWARD. THANK YOU, ERIK FOR THAT. >> MAYOR NIRENBERG: THANK

YOU, COUNCILMEMBER VIAGRAN. COUNCILMEMBER WHYTE. >> WHYTE: THANKS, MAYOR.

THANKS FOR THE PRESENTATION. I DON'T HAVE A LOT BUT I ECHO A LOT OF THE COMMENTS OF MY COLLEAGUES. TOURISM, ECONOMIC DRIVER HERE IN THIS CITY AND SO TO THE EXTENT WE CAN, YOU KNOW, REPURPOSE OUR CONVENTION CENTER AND HAVE IT CONTINUE TO DO THE THINGS FOR OUR ECONOMY THAT WE THINK IT CAN.

AND I LOOK FORWARD AS WELL TO THAT ECONOMIC IMPACT ANALYSIS.

THIS TO ME IS THINKING BIG. IT'S THINKING ALONG THE LINES THAT WE SHOULD BE AND SO I'M PLEASED WITH THE DIRECTION THAT WE'RE MOVING. A COUPLE OF QUESTIONS.

WE TALK ABOUT OCCUPANCY TYPES HERE ON SLIDE 12. WILL THE INVESTMENT CHANGE THE OCCUPANCY-TYPE MIX THAT WE HAVE AT ALL? OR DO WE EXPECT IT TO MOSTLY

STAY THE SAME? >> I DON'T EXPECT IT TO CHANGE A TON.

WE'RE IN A GOOD SPOT IN TERMS OF THE MIX. WE TALKED EARLIER, IT WAS MENTIONED THE CONSUMER SHOWS THEY MAY NOT GENERATE AS MUCH ECONOMIC IMPACT BUT THEY GENERATE A TON OF REVENUE FOR THE BUILDING. AND IT'S A COMMUNITY ASSET.

THE BANK, THE RECEPTIONS. THINK OF A CONVENTION CENTER IN PART AS A COMMUNITY GATHERING SPACE BIT MORE CONVENTION BUSINESS. IT MIGHT CHANGE THE PROPORTIONS A LITTLE BIT BUT IF WE CAN STICK WITH THIS, GENERALLY SPEAKING WE'RE IN

GREAT SHAPE. >> WHYTE: MORE OR LESS THE SAME.

IS THE MARKET ACROSS THE COUNTRY, IS IT MOVIN,G IN ONE WAY OR THE OTHER IN TERMS OF OCCUPANCY -- IN TERMS OF THE MIX FROM OTHER CONVENTION CENTERS, WHAT TYPE OF EVENTS

THEY'RE HOLDING? >> IT'S DIFFERENT IN EVERY BUILDING.

MY HOMETOWN OF MINNEAPOLIS, THE CONVENTION CENTER IS THE HOME TO CONSUMER SHOWS JANUARY, FEBRUARY, MARCH, AUTO SHOWS. 30% OF THEIR OCCUPANCY COMES FROM THOSE CONSUMER SHOWS. EVERY MARKET'S A LITTLE BIT DIFFERENT.

THERE ISN'T A TREND ONE WAY OR THE OTHER. MOST MARKETS WOULD LOVE TO GRAVITATE TOWARDS A HIGH-IMPACT EVENT MIX AS OPPOSED TO LOCAL EVENTS, JUST IN TERMS OF THE ROOM NIGHTS. BUT NOBODY IS GOING TO FORGET THAT IN ADDITION TO CONVENTIONS AND TRADE SHOWS WE ARE THAT COMMUNITY GATHERING SPACE FOR THE RESIDENTS SO THAT MIX IS PROBABLY WHERE WE'RE GOING

TO BE. >> WHYTE: THAT LEADS ME TO BALLROOM SPACE ON SLIDE 17.

IT LOOKS LIKE WE HAVE SIGNIFICANTLY MORE BALLROOM SPACE THAN MANY CITIES, INCLUDING SOME OF THE OTHER CITIES HERE IN TEXAS. IS THERE A SPECIFIC REASON

FOR THAT? >> WELL, THIS IS BROKEN DOWN INTO A 77,500 SQUARE FOOT.

55 AND A 40, ROUGHLY. THERE'S THREE BALLROOMS. DALLAS, MICHAEL IS WORKING ON A PROJECT WHERE THEY'RE GOING TO INTRODUCE A BALLROOM THAT'S 105,000 SQUARE FEET. BALLROOM SPACE, AS THE USE OF THAT SPACE HAS CHANGED AND MORPHED OVER TIME, WE'RE USING IT FOR DIFFERENT THINGS.

THAT REQUIREMENT HAS GOTTEN BIGGER AND BIGGER. THE PRODUCTION THAT GOES INTO THAT GENERAL SESSION, THE STAGE PRODUCTION HAS GOTTEN SO MUCH MORE ROBUST THAT THE SAME NUMBER OF ATTENDEES NEED MORE SPACE. THESE SPACES HAVE GOTTEN BIGGER AND BIGGER. ALTHOUGH I WOULD SAY, TO YOUR POINT, AT 775, 55, AND 40, I THINK THERE'S AN OPPORTUNITY TO MAKE THAT 77.5 MULTIPURPOSE .

DON'T THINK OF IT AS A BALLROOM. THINK OF IT AS A LIVING, BREATHING, FOOD FUNCTION, E-SPORTS, ROBOTICS, YOU NAME IT.

[01:10:01]

WE CAN ROLL INTO THAT AS WELL. IT'S GOING TO BE AMAZING.

>> WHYTE: YOU HAVE THAT SLIDE AT THE VERY END WHERE YOU TALK ABOUT THAT CONVENTION ATTENDANCE LEADS TO FUTURE LEISURE TRAVEL. DO WE HAVE ANY NUMBERS ON

THAT? >> THAT'S A GREAT QUESTION. LET ME WORK WITH MARK AND SEE WHAT THEY HAVE AND WE'LL SEE IF THERE'S NATIONAL DATA.

THERE'S ANECDOTAL DATA. I CALL THAT ME SEARCH. IT'S USEFUL BUT NOT AS IMPACTFUL AS IT COULD BE. LET ME LOOK INTO THAT. SURVEY RESEARCH RELATIVE TO

PEOPLE RETURNING TO A DESTINATION FOR LEISURE. >> WHYTE: I BELIEVE IT.

I WOULD JUST LIKE TO SEE THE NUMBERS. IF WE CAN GET PEOPLE TO OUR CITY AND SEE WHAT WE HAVE TO OFFER, I FULLY EXPECT PEOPLE WILL WANT TO COME BACK.

WE HAVE SO MUCH TO OFFER. MY LAST QUESTION IS WAS THERE ANY OTHER CONVENTION CENTER IN THE COUNTRY THAT YOU ALL TOOK A SPECIFICALLY HARD LOOK AT TO MAYBE PATTERN WHAT YOU'RE ENVISIONING OUR CONVENTION CENTER TO BE?

>> OH, WHAT'S THE BEST EXAMPLE? >> WHYTE: IS THERE ANOTHER ONE IN THE COUNTRY THAT YOU LOOKED AT AND SAID THEY REALLY DID IT RIGHT THERE

AND WE SHOULD INCORPORATE A LOT OF THAT INTO OURS? >> NO ONE PROJECT IN PARTICULAR. I LOVE WHAT THEY'RE DOING IN LONG BEACH WITH RESPECT TO

THEIR OUTDOOR PLAZA SPACE . LET ME ASK THE ARCHITECT. >> YEAH, I THINK THE GREAT THING ABOUT THE CONVENTION INDUSTRY, SINCE I HAVE BEEN INVOLVED IS EVERY BUILDING NEEDS TO BE UNIQUE TO ITS PLACE. FOR A LONG TIME CONVENTION CENTERS WERE FAIRLY GENERIC. WHEN WE WORKED ON THE MASTER PLAN HERE IN 2009-2010 WHICH LED TO THE LAST EXPANSION, WE TURNED THE BUILDING ON ITS HEAD AND WE TURNED IT INSIDE OUT AND CREATED SPACES THAT DIDN'T EXIST BEFORE.

WHEN YOU GO INTO THE NEW MAIN LOBBY, THOSE TYPES OF SPACES DIDN'T EXIST IN THE MARKETPLACE ANYWHERE SO IT WAS GREAT TO DO THAT FOR SAN ANTONIO, SPECIFIC TO SAN ANTONIO. WHILE WE LOOK AT OTHER PROJECTS, EVERY PROJECT WE DESIGN, IT REALLY WANTS TO BE OF ITS PLACE AND ON BRAND OF ITS PLACE.

THAT'S THE FUN PART OF THE DESIGN ASPECT. I THINK WHAT WE HAVE SET UP HERE IN REGARDS TO A PLANNING PROCESS IS HAVING THE ABILITY TO HAVE A LARGE MULTIPURPOSE BALLROOM SPACE THAT OVERLOOKS A RECENT INVESTMENT OF THE CIVIC PARK WHERE ALL OF YOUR COMMUNITY IS COMING TO GATHER. WE'LL TAKE ADVANTAGE OF THOSE OPPORTUNITIES SPECIFIC TO HERE. ONE OF OUR LAST PROJECTS WE OPENED IN CANADA WAS BUILT FOR THE CALGARY STAMPEDE AND IT HAS A LOT OF FEATURES THAT WE'LL INCORPORATE. I ALWAYS TALK ABOUT YOU WANT TO MAKE SURE THAT CUSTOMERS ENGAGE WITH THE CUSTOMERS BY CHANCE. WE CAME UP WITH A CONCEPT CALLED ORCHESTRATED SERENDIPITY. MAKE SURE THAT YOU PUMP INTO BUO PEOPLE THAT YOU CAME TO BUMP INTO. DON'T MISS THAT CONNECTION.

THAT INCORPORATES THE ABILITY TO DESIGN A FACILITY UNIQUE TO THAT ENVIRONMENT.

WE'LL LOOK TO DO THAT HERE. >> WHYTE: YEAH, MY HOPE FOR THIS PLACE IS THAT IT IS UNIQUELY SAN ANTONIO. THAT IT DOES TELL OUR STORY AND IT DOES INVITE PEOPLE THAT ARE THERE TO GO OUT AND SEE THE REST OF OUR CITY AND COME BACK AND EVEN MOVE HERE, MOVE THEIR BUSINESSES HERE, WHATEVER IT MAY BE. THANKS SO MUCH FOR THE

PRESENTATION. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER WHYTE.

COUNCILMEMBER KAUR. >> KAUR: THANK YOU, MAYOR. THANK YOU ALL FOR THE PRESENTATION AND FOR YOUR WORK ON THIS. THIS IS SUPER EXCITING.

I KNOW MARK SHARED A LITTLE BIT EARLIER ABOUT THE BUSINESS THAT WE LOST PREVIOUSLY. DO WE DO KIND OF AN ANALYSIS OR DID YOU ALL DO AN ANALYSIS OVER THE LAST YEAR OR TWO OF ALL THE THE CONVENTIONS THAT DIDN'T COME AND CREATE A MATRIX FOR IT WAS EXHIBIT SPACE OR NOT ENOUGH HOTEL ROOMS AND PUT TOGETHER AN ANALYSIS ON THAT? ANYONE CAN ANSWER THAT.

>> SO OUR SYSTEM LISTS GROUPS THAT WHY WE LOST IT. LACK OF SPACE.

WE DIDN'T HAVE ANY SPACE TO OFFER. THERE WAS NOT ENOUGH AVAILABLE IN THE CITY. WE COULDN'T GET THE CORRECT ROOM BLOCK.

AND WE HAVE ALL THAT DATA WE CAN PULL FOR YOU. >> KAUR: AND THAT WAS WHAT KIND OF FEED INTO THE NOTION THAT EXHIBIT SPACE IS THE MOST IMPORTANT IN THE

GROWTH, RIGHT? >> IN THIS ANALYSIS WE LOOKED AT BUSINESS THAT WE LOST BECAUSE WE WERE TOO SMALL. IF WE HAD GROWN TO A CERTAIN PERCENTAGE, THAT'S HOW WE CORRELATED THE LOST BUSINESS.

WHAT I STATED EARLIER, WHICH WAS CLOSE TO $700 MILLION OVER A SIX-YEAR PERIOD.

>> KAUR: I WAS JUST MAKING SURE. I THINK WHAT YOU HEARD FROM OUR COUNCIL COLLEAGUES IS THAT WE WANT TO MAKE SURE THAT WE'RE INVESTING IN THE RIGHT EXTRA AMENITY AT THE CONFERENCE CENTER. THERE'S GOING TO BE SO MUCH

[01:15:03]

AND IT SEEMS LIKE, FROM THE SLIDES ON THE ANALYSIS, THAT IS EXHIBIT CENTER SPACE BECAUSE OF THE RATIO BETWEEN MEETING SPACE TO EXHIBIT CENTER.

IS THAT WHAT YOU GUYS HAVE AN ACCURATE SENSE OF? IS THAT AN ACCURATE

DEPRESCRIPTION OF WHAT Y'ALL STUDIED? >> THE EXHIBIT SPACE IS OFTEN THE KEY DRIVER. IF WE CAN'T FIT THE EXHIBITS, WE CAN'T FIT THE EVENT. THAT IS PROBABLY THE MOST IMPORTANT ENGINE OF THIS.

ON THE BACKS OF THAT WE LOOK AT YOUR MEETING SPACE, BALLROOM SPACE.

WE HAVE LOOKED AT ALL THE MARK'S DATA. IT'S NOT JUST SPACE, IT'S SPACE AND DATES. WE MAY HAVE ENOUGH SPACE BUT WE'RE FULL.

WE HAVE ALREADY GOT AN EVENT SITTING THERE AND ONE THAT WANTS TO COME AFTER THAT SO IT'S A COMBINATION OF THE SPACE, THE DATES. OCCASIONALLY THE ROOM RATES TEND TO BE HIGH FOR SOME EVENTS. THERE'S A MIX OF THINGS BUT THE EXHIBIT SPACE IS THE KEY TO ENTRY AND ONCE YOU ENTER THEN YOU HAVE TO HAVE ALL

THE OTHER AMENITIES. >> KAUR: YOU HAD A COUPLE OF EXAMPLES OF OTHER CONVENTION CENTERS THAT HAVE RECENTLY REMODELED AND GROWN.

HAVE YOU GUYS LOOKED AT THE DATA OF POST THEIR REMODELING.

WHAT KIND OF GROWTH THEY HAD. IS THAT HOW YOU GET YOUR

PROJECTIONS FOR THE GROWTH? >> IT'S PART OF THE MIX. EVERY MARKET IS SO UNIQUE.

WE'LL ACTUALLY SIT DOWN WITH VISIT SAN ANTONIO AND WE'LL LAY OUT THE BOOK OF BUSINESS AS IT EXISTS TODAY. WE'LL CONSIDER THE LOST BUSINESS, THE COMPETITION.

THEN WE'LL START TO POPULATE THIS CALENDAR OF THE FUTURE WITH CONVENTIONS AND TRADE SHOWS BASED ON THE EXPERIENCE THAT WE HAVE ALL HAD COLLECTIVELY.

WE DO HAVE EXAMPLES OF WHERE A CONVENTION CENTER HAS BEEN INVESTED IN EITHER THE CENTER OR THE HEADQUARTER HOTEL OR BOTH AND WE'RE GOING TO SHARE WITH YOU SOME DATA AS TO THE BUMP THAT WAS GENERATED. SOMETIMES THE BUMP IS JUST BACK TO WHERE WE WERE BECAUSE WE'VE GONE SO FAR BACK.

SOMETIMES THE BUMP IS GOING BEYOND WHERE WE'RE AT TODAY. >> KAUR: OKAY.

GREAT. THANK YOU. >> YOU BET.

>> KAUR: I THINK THE LAST QUESTION I HAD, ERIK, MAYBE THIS IS A QUESTION FOR YOU.

ON THE STATE FUNDING WE'RE GETTING WITH THE ADDITIONAL CONVENTION CENTER.

IS THAT -- IT'S WITHIN AN X RADIUS. >> WALSH: YES, MA'AM.

SO THE PROJECT FINANCE ZONE DISTRICT THE COUNCIL CREATED IN DECEMBER OF LAST YEAR.

AND IT ESTABLISHES OVER A 30-YEAR PERIOD A THREE-MILE RADIUS AROUND THE CONVENTION CENTER AND THE ALAMODOME TO CAPTURE THE INCREMENT ON A STATE SALES TAX, STATE LIQUOR TAX AND HOTELS, AND STATE SALES TAX WITHIN HOTELS.

AND THAT IS ONE REVENUE STREAM FOR THINGS LIKE CONVENTION CENTERS.

WE ALSO HAVE OUR HOTEL OCCUPANCY TAX BUT THAT'S THAT FUNDING PLAN THAT WE NEED TO PUT TOGETHER. THE PROJECT FINANCE ZONE FUNDING IS KIND OF LIKE A TIRZ. IT GROWS VERY LITTLE IN THE FIRST YEAR AND THEN OVER TIME, OVER 30 YEARS IT GROWS. IT'S NOT A STEADY -- IT'S NOT A CONSTANT STREAM OF REVENUE AND SO THAT'S PART OF THE CALCULUS THAT WE HAVE TO GO THROUGH IN ORDER TO DETERMINE WHAT THAT ESTIMATE MIGHT BE IN THE FUTURE.

>> KAUR: I JUST WONDER WHEN YOU ALL COME BACK WITH THE FUNDING PLAN, IF YOU THINK OF A PHASED APPROACH AS WELL. WHAT IT SEEMS LIKE THE MOST IMPORTANT PART IS THE EXHIBIT SPACE THAT'S GOING ON INTO CIVIC PARK.

THAT'S GOING TO BE A HIGHLIGHT. IT'S NEEDED FOR BRINGING IN MORE CONVENTIONS. SO FOCUSING ON THAT AND IF THERE IS A WAY TO ADD ON AFTER THAT PROJECT ZONE TAX INCREMENT INCREASES -- BECAUSE IT'S GOING TO BE A TRADE-OFF. EVERYTHING WE DO AND HOW WE FUND IT IS GOING TO BE A TRADE-OFF SO THINKING ABOUT HOW CAN WE GET A BANG FOR OUR BUCK IN THE NEAR TERM WHILE WE CONTINUE TO GROW AND WHETHER THAT'S PRIORITIZING ONE PIECE OF THE CONVENTION CENTER AND THEN COMING BACK TO IT A FEW YEARS LATER.

>> WALSH: YOU'RE 100% RIGHT. YOU SOUND LIKE THE CITY MANAGER. YOU'RE 100% RIGHT. WE'RE GOING TO HAVE TO LOOK AT THAT. THE MARKETABILITY OF EACH OF THESE COMPONENTS, WHILE IMPORTANT TO MARK'S BUSINESS AND THE CITY'S ECONOMY, WE MAY HAVE TO PHASE SOME OF THIS STUFF. THE BALANCE OF THAT IS AS LONG AS THE CRANE IS THERE AND THE CREWS ARE THERE, IS IT BETTER TO DO IT NOW? BUT THAT'S THAT PART THAT WE'RE GOING TO TRY TO WORK ON AS THEY CONSULT THE POPULOUS.

>> KAUR: I THINK OUR COMMUNITY IS ALREADY USED TO CRANES.

OKAY. THANK YOU. AND THE LAST QUESTION THAT I JUST HAVE FOR YOU ALL ON FUNDING -- AND THIS IS SOMETHING THAT I ASKED ABOUT IN THE BUDGET. OUR CONVENTION CENTER DOESN'T PAY FOR ITSELF SO WE

[01:20:03]

THAT'S WHAT I LEARNED IN THIS LAST BUDGET CYCLE. IS THAT THE SAME ACROSS OTHER CITIES? YEAH. I HEAR YOU GUYS.

OKAY. JUST WANTED TO MAKE SURE. >> WALSH: I'LL ADD THAT PART OF THE WORK THAT WE STILL HAVE TO DO, ONCE WE DETERMINE WHAT WE NEED TO BUILD AND WHEN WE'RE GOING TO BUILD IT IS THEN TO LAYER IN THE OPERATING IMPACT.

BECAUSE THAT MEANS PATRICIA HAS MORE OF A BUILDING TO MAINTAIN.

AND THAT'S WORK WE NEED TO DO AFTER WE DETERMINE WHAT THAT IDEAL SIZE IS.

>> KAUR: I THINK THAT WILL BE THE MOST IMPORTANT THING FOR OUR RESIDENTS TOO BECAUSE WHAT COUNCILWOMAN VIAGRAN AND COUNCILWOMAN ALDERETE GAVITO, OUR COMMUNITY WANTS TO KNOW -- EVEN SINCE LAST WEEK'S PROJECT, EVERYONE HAS SEEN THE PROJECT AND THEY'RE SO EXCITED AND THEY'RE LIKE HOW ARE OUR TAX DOLLARS GOING TO BE PAYING FOR THIS? FOR US IT'S IMPORTANT TO BE CLEAR ON WHERE THOSE FUNDS ARE COMING FROM. I THINK YOU DID A GREAT JOB. I'M GLAD YOU GUYS ARE GETTING TO OVERSEE THE WHOLE PROJECT. THE LAST COMMENT I WANTED TO MAKE WAS ENSURING ACCESS ACROSS ALL SIDES. I KNOW IT IS ALREADY BUT WHEN WE HAVE MULTIPLE LEVELS --E RIVER WALK AND UP-LEVEL. IT GETS CONFUSING.

YOU DON'T KNOW WHICH LEVEL YOU ARE ON SOMETIMES. JUST KEEPING THAT IN MIND WHEN YOU THINK ABOUT HOW THE CONVENTION CENTER IS GOING TO BE THE CRUX OF MARVEL.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER KAUR. COUNCILMEMBER CASTILLO.

>> CASTILLO: THANK YOU FOR THE PRESENTATION. I HAD THE OPPORTUNITY TO REVIEW YOUR PHOENIX PRESENTATION AND I APPRECIATE THAT IN THE PEDESTRIAN PLACEMAKING YOU USED A COUPLE OF CITY OF SAN ANTONIO EXAMPLES THERE.

I DO BELIEVE THAT THERE WOULD BE VALUE IN SEEING THE CAPITAL STACK FOR SIMILAR INVESTMENTS MADE IN TEXAS CITIES LIKE AUSTIN, DALLAS, AND HOUSTON.

AND THEN ALSO TO PROVIDE AN ANALYSIS IF THEY DID SEE AN INCREASE IN ACTIVITY AND SPENDING. I KNOW THAT'S SOMETHING OUR CONSTITUENCY IS ALREADY ASKING. WHAT'S GOING TO BE THE BENEFIT.

AND SIMILAR TO COUNCILWOMAN HAVRDA, I UNDERSTAND THAT SOME OF THE SPENDING WILL BE --S THIS GOING TO SUPPORT OUR LOCAL BUSINESSES AND I THINK ABOUT THE MARGARITAVILLE BUT HOW IS IT GOING TO IMPACT THE FRIENDLY'S SPOT? IF THERE'S AN OPPORTUNITY TO CONDUCT AN ANALYSIS WHEN THERE ARE CONVENTIONS DOWNTOWN AND WHAT THAT IMPACT MAY LOOK LIKE, I THINK COULD BE HELPFUL BECAUSE THIS IS SOMETHING OUR SMALL BUSINESSES ARE ASKING. DON'T FORGET ABOUT US.

HAD A CONVERSATION WITH JAIME'S PLACE AND HE FEELS LIKE THEY ARE GETTING LOST IN THIS MIX. DON'T FORGET THAT THE MOM AND POP BUSINESSES WANT TO CAPITALIZE ON THESE INVESTMENTS AND IMPROVEMENTS COMING TO DOWNTOWN.

I WOULD AGREE -- AND THIS IS GOING TO BE A VERY LARGE-SCALE PROJECT LARGE-MOVIN.

I THINK THERE WOULD BE VALUE IN US JUST HAVING A CONVERSATION ABOUT ONCE WE RECEIVE THE FULL FEASIBILITY STUDY, WHERE ARE ALL THOSE PIECES THAT DO NEED TO HAVE EXPANSION. BECAUSE THE PROPOSAL WITH PROJECT MARVEL HAS A NUMBER OF VENUES AND HOW CAN WE RETROFIT AND REUSE THOSE VENUES, ESPECIALLY IF PROJECT MARVEL INCLUDES A NEW HOTEL. THERE'S JUST A LOT OF MOVING PIECES AND I THINK FOR US TO GIVE WELL-INFORMED DIRECTION, HAVING THAT INFORMATION WOULD BE VERY HELPFUL. I WANTED TO THANK MARK OF VISIT SA FOR SHARING THEY ARE COLLECTING THAT DATA ON WHY FOLKS DON'T END UP STAYING WITH US TO HOST THEIR EVENT. I THINK HAVING THAT INFORMATION AND SHARING WITH COUNCIL WOULD BE BENEFICIAL SO WE KNOW WHERE IS BEST TO CLOSE SOME OF THOSE GAPS AND ENSURE WE'RE KEEPING THAT BUSINESS HERE IN SAN ANTONIO. I DO THINK THERE WOULD BE VALUE AS WELL AS HAVING A BREAKDOWN ON THE ANNUAL ATTENDANCE AT THE HENRY B. GONZALES CONVENTION CENTER.

I HAVE AN EXAMPLE FROM NEW ORLEANS BUT OVERALL THE COST ASSOCIATED WITH THAT AND THE TYPES OF EVENTS WE'RE SEEING HERE. IS THAT SOMETHING THAT CITY

STAFF CAN GET FOR US? >> WALSH: WILL YOU REPEAT THAT?

ATTENDANCE AND WHAT? >> CASTILLO: WHAT WOULD BE HELPFUL IS TO HAVE THE ATTENDANCE OF THE LAST TEN YEARS BROKEN DOWN BY EVENT TYPE PARALLEL TO HOTEL ROOM NIGHT PRODUCTION. AND THEN EVENT TYPE, WHETHER IT'S A TRADE SHOW OR WHATEVER THE CASE MAY BE. BECAUSE I THINK THAT WOULD BE HELPFUL IN ANALYZING US HOW WE COMPARE THE DATA IN DALLAS AND OTHER TEXAS CITIES.

FURTHER, I THINK WITH THE WAYS IN WHICH THE CITY OF SAN ANTONIO OFTEN SUBSIDIZES SOME OF THESE EVENTS THROUGH THE HOSTING OBLIGATIONS WITHIN OUR ANNUAL BUDGET, I THINK THERE WOULD BE VALUE IN COUNCIL BEING PRESENTED WHAT HAVE WE SUPPORTED

[01:25:02]

I THINK ALL THAT'S REALLY IMPORTANT AND I THINK SOME OF MY COLLEAGUES HAVE BROUGHT THAT UP. BECAUSE WHEN WE LOOK AT DIFFERENT CITIES THAT HAVE MADE HISTORIC INVESTMENTS INTO THEIR CONVENTION CENTER LIKE DETROIT, FOR EXAMPLE.

THEY INVESTED NEARLY $279 MILLION AND THEY STRUGGLED WITH HIGH VACANCY RATES. WASHINGTON, D.C., WHILE THEY DO GET A LOT OF THOSE POLITICAL CONVENTIONS, THEY STRUGGLED WITH $850 MILLION OF INVESTMENTS.

THEY STRUGGLED TO ATTRACT REGULAR LARGE-SCALE CONVENTIONS.

I UNDERSTAND EVERY CITY IS UNIQUE, HAS A DIFFERENT SETUP WITH THEIR HOTEL AND I WANT TO ENSURE WE'RE SETTING UP SAN ANTONIO TAXPAYERS TO GET THE BEST BANG FOR THEIR BUCK. INDIANAPOLIS, WHILE THEY WERE SUCCESSFUL IN ATTRACTING THE BASKETBALL TOURNAMENT, THEY WEREN'T SUCCESSFUL IN ATTRACTING MORE EVENTS. WE WANT TO MAKE SURE WE'RE ATTRACTING EVERYONE WE HAVE TO TURN AWAY BECAUSE WE DON'T HAVE THE SPACE. IF WE COULD LOOK AT THOSE THINGS, THERE WOULD BE VALUE IN THAT . IN TERMS OF THE FEASIBILITY STUDY THAT YOU ALL CONDUCTED TEN YEARS AGO, I WOULD LIKE TO SEE AN ANALYSIS OF ACTIVITY AND FINANCIAL SPENDING BASED OFF OF THE LAST IMPROVEMENTS THAT WERE MADE. IS THAT SOMETHING THAT WE CAN RECEIVE? GREAT. AND THEN IN TERMS OF THE COMPLETE VISIBILITY STUDY, WHICH WILL WE HAVE ONE SIMILAR TO THE ONE PRESENTED TO COUNCIL IN 2010?

>> WALSH: NEXT YEAR. AND WE'LL WORK ON THE TIMELINE.

BUT THERE'S STILL A LOT OF WORK THAT NEEDS TO BE DONE AND I CAN'T GIVE YOU A MONTH

RIGHT NOW. >> CASTILLO: SOUNDS GOOD. THOSE ARE ALL MY COMMENTS.

THANK YOU, MAYOR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER CASTILLO.

COUNCILMEMBER PELAEZ. >> PELAEZ: SO, MARK, YOU'VE TAUGHT ME THAT, YOU KNOW, WHAT GOES INTO SELECTING A DESTINATION, THESE PLANNERS, THESE SITE SELECTORS IS REALLY A MIXED BAG. OBVIOUSLY IT'S THEIR HOTEL EXPERIENCE THAT THEY'RE GOING TO GUARANTEE THEIR ATTENDEES, THE SQUARE FOOTAGE OF THE EXHIBIT SPACE, THE AMENITIES SURROUNDING THE CONVENTION CENTER. YOU KNOW, THE INTERESTING THINGS TO DO IN THE CITY.

AND THEN OBVIOUSLY THE RELATIONSHIP THAT THESE PLANNERS HAVE WITH THE CVBS. HOWEVER, I WAS READING 65% OF PLANNERS AND DESTINATION SELECTION CONSULTANTS ARE REPORTING THAT THE COMMUNITY'S VALUES ARE IMPORTANT IN SELECTING THE SITE. SO THAT IF THE QUOTE, UNQUOTE VALUES LINE UP WITH THE ORGANIZATION'S VALUES -- IN OTHER WORDS, THE CONFERENCE ORGANIZERS, THAT THAT'S A BIG DEAL TO THEM. I MEAN, AND SO IT'S ONE OF THOSE THINGS THAT, YOU KNOW, WE CAN TALK ABOUT THE BUILDING.

WE CAN TALK ABOUT, YOU KNOW, THE INTERIOR DESIGN. WE CAN TALK ABOUT THE ART, THE PARKING AND ALL THAT BUT ONE OF THE THINGS THAT WE HAVE SEEN IS THAT WHEN OUR FRIENDS IN AUSTIN GET A LITTLE SILLY AT THE CAPITAL, IT HAS A DIRECT IMPACT ON OUR ABILITY TO COMPETE. AND AT SOME POINT WHEN YOU'RE TALKING ABOUT THE 700-PLUS MILLION DOLLARS OF CONVENTION OPPORTUNITIES THAT WE'VE LOST, SOME OF THAT IS BECAUSE OUR FRIENDS IN AUSTIN GOT GOOFY ON US AND THEY WERE PASSING BILLS.

I REMEMBER THAT BATHROOM BILL REALLY HURT AND WE HAD TO GO UP TO AUSTIN AND MAKE SURE THAT SAN ANTONIO'S STORY WAS TOLD. WE ACTUALLY LOST CONVENTIONS TO THAT. I'M BRINGING UP OLD HISTORY HERE BUT THE REALITY IS THAT I THINK THAT ALL OF US GROWN-UPS IN THE ROOM SHOULD PROBABLY EXPECT A LITTLE BIT MORE OF THAT FRICTION COMING OUT OF AUSTIN AND THAT WILL MAKE YOUR JOB A LITTLE BIT MORE COMPLICATED. THIS IS NOT THE PLACE, THIS MEETING, BUT AT SOME POINT WE NEED TO HAVE THAT CONVERSATION. MAYBE FROM A GOVERNMENT RELATIONS IGR PERSPECTIVE ABOUT HOW WE TALK ABOUT SAN ANTONIO AND WHAT WE NEED TO GUARD AGAINST HAPPENING UP IN AUSTIN SO THAT IT DOESN'T NEGATIVELY IMPACT THE EFFORT EVERYBODY IS PUTTING IN TO MAKE SURE WE LAND AS MUCH BUSINESS AS WE POSSIBLY CAN.

NUMBER TWO, AS WE MOVE FORWARD WITH THIS DESIGN AND EXECUTING AN EXPANSION, I WOULD LIKE TO THINK ABOUT, YOU KNOW, WHAT IT MEANS TO FUTURE PROOF THIS BUILDING OR COLLECTION OF BUILDINGS SO THAT, YOU KNOW, IN 20 YEARS, AS THERE'S NEW TECHNOLOGY. AS BROADCASTING OR STREAMING OR, YOU KNOW, DIGITAL

[01:30:05]

ACTIVATION OF ROOF AND, YOU KNOW, THESE OUTDOOR DECKS. I DON'T THINK WE'VE GOT A SUFFICIENT AMOUNT OF THAT AT OUR CURRENT CONVENTION CENTER AND I THINK THAT THERE'S OPPORTUNITIES OUT THERE. IF ALL WE'RE DOING IS EXPANDING THE BIG BOX SO THAT THE EXPERIENCE ON THE INSIDE IS FANTASTIC WITHOUT REALLY GIVING MUCH THOUGHT TO THE ACTIVATION OF SOME OF THE OUTDOOR OPPORTUNITIES THERE, THEN I THINK WE WOULD BE MAKING A MISTAKE. MARK, I'M SEEING THE NODDING OF THE HEAD AND I THINK YOU'RE WITH ME ON THIS ONE. WE NEED TO MAKE SURE THAT THIS IS AS BEAUTIFUL AS ALL THE OTHER CONVENTION CENTERS.

ONE THING I WOULD LIKE US, AS WE PROCEED TO REALLY KIND OF FLESH THIS OUT, IS TO UNDERSTAND HOW PEOPLE ARE USING THE BUILDING. AND HOW WE ARE GOING TO MEASURE, GOING FORWARD, HOW THEY USE THE BUILDING. IN OTHER WORDS, FOR ALL THESE HUNDREDS OF MILLIONS OF DOLLARS SPENT ON EXPANSION, HOW DO WE MAXIMIZE THE USE OF EVERY SQUARE FOOT. DO WE WHERE AND HOW LONG PEOPLE ARE LINGERING IN A CERTAIN CORNER OF THE BUILDING AND ARE THERE OTHER PARTS OF THE FACILITY WHERE THEY'RE AVOIDING IT. AND IS IT A MATTER OF BETTER LIGHTING, FURNITURE, ART, CONCESSIONS THERE. HOW DO WE MEASURE THAT AND ARE WE DOING THAT RIGHT NOW? I DON'T KNOW THE ANSWER TO THAT SO I'D LIKE AT SOME POINT, ERIK, MAYBE WE CAN GET SOME KIND OF UNDERSTANDING AS FAR AS HOW WE ANALYZE THE USAGE. IT'S NOT JUST A MATTER OF HOW MANY PEOPLE WALK IN THE DOOR AND OUT THE DOOR AT THE END OF THE DAY, I WANT TO KNOW HOW THEY'RE ACTUALLY INTERACTING WITH THE BUILDINGS. THE OTHER THING IS THERE'S GOING TO BE PEOPLE OUT THERE WHO -- WE HAVE HEARD THE OBJECTIONS TO PROJECT MARVEL AND OH MY GOSH, THIS IS NOT A BUILDING FOR ME. BUT I'VE BEEN THINKING ABOUT IT, YOU KNOW, HOSPITALS, UNIVERSITIES, AIRPORTS, HOTELS, RESTAURANTS, THE LIFE CYCLE OF THESE FACILITIES IS THERE COMES A POINT WHEN THEY HAVE TO MAKE A REINVESTMENT IN UPGRADING AND MODERNIZING THE FACILITY IN ORDER TO STAY COMPETITIVE. THIS BUILDING IS NO DIFFERENT.

OUR CONVENTION CENTER REQUIRES CONTINUOUS IMPROVEMENTS AND MODERNIZATION IN ORDER TO STAY COMPETITIVE. I TOTALLY GET THAT.

AND WE TELL PEOPLE THAT WE'RE A WORLD-CLASS CITY AND WE WANT TO COMPETE WITH THE GREAT CONVENTION CENTERS ALL AROUND THE GLOBE. I THINK WE SHOULD, I THINK WE DESERVE THAT. AND WE ALSO NEED TO FIGURE OUT A WAY TO MAKE SURE THAT LOCAL BUSINESSES ARE THE ONES THAT BUILD THIS PLACE. WE HAVE THE FIRMS HERE IN SAN ANTONIO WHO CAN EXECUTE ON THIS. AND Y'ALL REMEMBER I WAS SAD TO SEE THAT OUR AIRPORT, WE BASICALLY GAVE THE CONSTRUCTION PROJECT TO BE THE PRIME TO SOMEBODY OUT OF TEXAS. NOT EVEN SAN ANTONIO BUT IN COLORADO. I'M SURE THEY'RE GOING TO DO A FINE JOB BUT I KNOW WE'VE GOT FIRMS ALREADY WHO ARE GROWN UP, READY, HAVE THE CAPACITY, BANDWIDTH, AND EXPERTISE TO EXECUTE ON SOMETHING LIKE THIS. AND I SEE PROJECT CONTROL HERE. THANK YOU SO MUCH FOR SHOWING UP.

WE HAVE SOME BIG FIRMS IN TOWN THAT CAN DO THIS AND IT WOULD BREAK MY HEART IF WE'RE SPENDING HUNDREDS OF MILLIONS OF DOLLARS AND PAYING SOME FIRM FROM OUT OF TOWN TO TAKE THAT MONEY OUT OF TOWN AS OPPOSED TO IT STAYING HERE AND CIRCULATING FOR THE BENEFIT OF THE PEOPLE OF SAN ANTONIO. I LOOK FORWARD TO SEEING

WHAT DEVELOPS FROM THIS CONVERSATION. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER PELAEZ. ANY FURTHER DISCUSSION ON THIS ITEM? AT RISK OF ANDY TELLING ME I'M NOT BEING GERMANE, SINCE THE AIRPORT CAME UP, THE FIRST WORKER HIRED ON TO THAT JOB SITE WAS A READY TO WORK PARTICIPANT.

JUST FYI. ITEM NO. 2, ERIK. THANK YOU, GUYS FOR THE ITEM

NO. 1. >> WALSH: THANK YOU, MAYOR.

OUR SECOND ITEM IS A PRE-SOLICITATION BRIEFING ON A NUMBER OF SOLICITATIONS.

[01:35:08]

APPROXIMATELY $67 MILLION OF THE $150 MILLION 2022 HOUSING BOND HAS BEEN AWARDED BY THE CITY COUNCIL. THE TOTAL IS ALMOST $36 MILLION AND SO VERONICA WILL WALK THROUGH THE PRE-SOLICITATION DOCUMENTS AND PROPOSED EVALUATION CRITERIA, AND OUR TIMELINE TO GET SOME INPUT FROM YOU ALL BEFORE WE ISSUE THOSE

SOLICITATIONS. VERONICA. >> THANK YOU, ERIK.

GOOD AFTERNOON, MAYOR AND COUNCIL. VERONICA GARCIA, DIRECTOR FOR OUR NEIGHBORHOOD AND HOUSING SERVICES DEPARTMENT. WE DO HAVE A BRIEFING ON OUR NEXT FUNDING ROUND, REQUEST FOR PROPOSALS FOR OUR BOND FUNDS AND OUR HUD, CDBG, AND HOME FUNDING. THE CITIZENS APPROVED OUR AFFORDABLE HOUSING BOND BACK IN MAY 2022. AND THE TOTAL OF $150 MILLION.

THESE FUNDS CAN BE USED TO PRODUCE AND PRESERVE AFFORDABLE HOUSING IN OUR COMMUNITY AND WE USE THE BOND FUNDS ACROSS FIVE DIFFERENT FUNDING CATEGORIES. THE FIRST IS HELPING HOMEOWNERS STAY IN THE AFFORDABLE HOUSING THEY ALREADY LIVE IN. THE SECOND IS TO IMPROVE THE EXISTING AFFORDABLE RENTAL HOUSING WE HAVE. THE NEXT IS TO BUILD NEW AFFORDABLE HOUSING, RENTAL HOUSING, AND ALSO TO BUILD HOUSING SPECIFICALLY FOR INDIVIDUALS EXPERIENCING HOMELESSNESS. FINALLY, WE ALSO HAVE FUNDING SET ASIDE TO HELP BUILD MORE AFFORDABLE SINGLE-FAMILY HOMES AND ENCOURAGE HOME OWNERSHIP OPPORTUNITIES FOR DIVERSE INCOME LEVELS.

THE BOND TO DATE, WE HAVE AWARDED $67 MILLION AND BEEN ABLE TO LEVERAGE AND AWARD $21 MILLION IN FEDERAL FUNDS AS WELL. IN TOTAL, WE PROVIDED FUNDING TO 23 DIFFERENT PROJECTS AND THESE PROJECTS WILL PRODUCE OR PRESERVE ALMOST 4200 UNITS. I WOULD LIKE TO EMPHASIZE THAT OF THE FUNDS THAT HAVE BEEN AWARDED, WE HAVE NEARLY 400 AFFORDABLE HOMES THAT ARE ALREADY COMPLETED.

WE ALSO HAVE 2700 HOMES THAT ARE UNDER CONSTRUCTION. SO THE REMAINING ARE IN THE FINAL CONTRACTING PHASES AND WE'LL START CONSTRUCTION IN THE NEXT FEW MONTHS.

SO WE'RE REALLY EXCITED ABOUT THE PROGRESS THAT WE'VE MADE WITH THE HOUSING BOND ALREADY. AND OF THOSE NEARLY 4200 UNITS, YOU CAN SEE JUST OVER 1,000 ARE SET ASIDE FOR FAMILIES, DEEPLY AFFORDABLE UNITS AT 30% OF THE AREA MEDIAN INCOME OR BELOW. THE BOND FUNDS HAVE ALSO BEEN UTILIZED TO HELP US FURTHER OUR STRATEGIC HOUSING IMPLEMENTATION PLAN, WHICH INCLUDES 36 DIFFERENT STRATEGIES OVER THE NEXT TEN YEARS. COUNCIL MEMBERS HAVE ALREADY APPROVED NEARLY $7.5 MILLION OF BOND FUNDS SPECIFICALLY FOR OUR DEMO DIVERSION OPERATION REBUILD PROJECTS. WE HAVE ALSO BEEN APPROVED HOUSING BOND FUNDS TO HAVE A MOBILE HOME PARK AND CONVERT IT INTO A RESIDENT-OWNED CO-OP.

WE HAVE ONE THAT'S ALREADY BEEN DONE. IT HAS BEEN ACQUIRED.

IT'S ALREADY BEEN TURNED INTO CO-OWNED BY ALL OF THE RESIDENTS WHO LIVE THERE.

AND THE IMPROVEMENTS TO THE MOBILE HOME PARK ARE CURRENTLY UNDERWAY.

COUNCIL HAS ALSO APPROVED ANOTHER FUNDING SET ASIDE FOR US TO ACQUIRE A SECOND MOBILE HOME PARK AND TURN THAT TO A RESIDENT CO-OP. THAT IS IF WE ARE TO BE AWARDED A HUD PRICE GRANT MATCH. AND WE HOPE TO HEAR BACK ON WHETHER OR NOT WE RECEIVE THAT GRANT HOPEFULLY EARLY NEXT YEAR.

WHAT IS STILL TO COME BACK TO COUNCIL FOR FUTURE CONSIDERATION IS AN ADDITIONAL $9.6 MILLION TO CONTINUE TO PURSUE OUR CREATIVE PROJECTS IN ALIGNMENT WITH OUR SHIP. THIS INCLUDES ABOUT $7 MILLION FOR US TO CONTINUE TO WORK ON OUR TRANSIT-ORIENTED DEVELOPMENT AND OUR STRATEGIC LAND ACQUISITION. THIS IS HOW WE CONTINUE TO FOCUS HOUSING ALONG OUR TRANSIT LINES RATHER THAN BUILDING OUTWARDS WHILE WE ENSURE THESE DEVELOPMENTS RESPECT OUR NEIGHBORHOODS. THIS SET ASIDE INCLUDES ALSO ANOTHER HUD GRANT THAT WE'VE APPLIED FOR THAT WOULD REALLY PROVIDE AN ADDITIONAL $7 MILLION FROM HUD SO THAT WOULD LEVERAGE OUR BOND FUNDS TO HELP US ACQUIRE EVEN MORE LAND IN PARTNERSHIP WITH THE HOUSING TRUST OR NONPROFIT PARTNERS ALONG THE VIA FUTURE ADVANCED RAPID TRANSIT LINES. ANOTHER STRATEGY IS CONTINUING TO INCENTIVIZE THE CREATION OF ACCESSORY DWELLING UNITS.

[01:40:06]

WE HAVE ALSO WORKED TO CREATE PREDESIGNED PLANS AND MAKE THEM AVAILABLE ON OUR WEBSITE ALONG WITH LOTS OF ADDITIONAL INFORMATION THAT REALLY HELPS THE COMMUNITY KNOW HOW TO BUILD THESE HOUSING OPTIONS, WHICH ARE AFFORDABLE DIVERSITY WITHIN THE NEIGHBORHOODS. NEXT UP WITH ADUS IS WE ARE WORKING ON ADDITIONAL INCENTIVES THAT WILL HELP PEOPLE FINANCE AND BUILD ADUS OR REHAB ONE THEY HAVE AND CONVERT IT TO AFFORDABLE HOUSING. THOSE FUNDING RECOMMENDATIONS AND INCENTIVES WILL BE BROUGHT BACK TO COUNCIL IN EARLY NEXT YEAR FOR FUNDING CONSIDERATION. THE FINAL CATEGORY IS COMMUNITY LAND TRUST WHICH REALLY HELPS STABILIZE COMMUNITIES AND NEIGHBORHOODS WITH COMMUNITY-DRIVEN HOUSING OPTIONS.

THIS PAST OCTOBER THE COUNCIL MEMBERS APPROVED OUR COMMUNITY LAND TRUST POLICY.

SO WE ARE RECOMMENDING A COMEBACK WITH A SOLICITATION WHERE WE WOULD WORK WITH THEM AND THEY WOULD BE ABLE TO USE BOND FUNDS TO ACQUIRE AND BUILD AFFORDABLE HOUSING THAT HAS THAT PERMANENT AFFORDABILITY. ALL THIS IS EXPECTED TO COME BACK TO COUNCIL FOR INDIVIDUAL CONSIDERATIONS. SO TODAY'S BRIEFING IS TO DISCUSS A NEW ROUND -- AND WE HOPE IT'S OUR FINAL ROUND OF BOND FUNDS FOR FOUR CATEGORIES. A TOTAL OF APPROXIMATELY $35.8 MILLION WILL BE MADE AVAILABLE AND DIFFERENT FROM PREVIOUS ROUNDS WE ARE RECOMMENDING TO COMBINE THE RENTAL PRODUCTION AND THE RENTAL REHAB CATEGORIES INTO ONE SOLICITATION.

THIS IS BASED ON FEEDBACK FROM APPLICANTS WHO HAVE TRIED TO DO HYBRID PROJECTS OR DIDN'T KNOW WHICH ONE TO APPLY FOR. IT WILL ALSO HELP US ENSURE WE CAN AWARD ALL OF OUR FUNDING PRIOR TO THE NEXT BOND CYCLE.

THE OTHER CHANGE WITH THIS FUNDING ROUND -- THIS IS IN DIRECT RESPONSE TO HOW WE ARE COMING ALONG WITH MEETING OUR HOUSING GOALS, OUR AFFORDABLE HOUSING GOALS. AND WE KNOW THAT WE NEED TO CONTINUE TO FOCUS ON STREAMLINING OUR REMAINING INCENTIVES TOWARDS CREATING THE DEEPLY AFFORDABLE HOUSING THAT WE STILL NEED IN SAN ANTONIO. SO WITH THIS FUNDING ROUND WE ARE RECOMMENDING TO INCREASE THE MINIMUM NUMBER OF UNITS SET ASIDE FOR FAMILIES AT 30% AREA MEDIAN AMI. THAT WILL BE AT 15% OF THE TOTAL PROJECT.

THIS IS AN INCREASE FROM WHAT WE HAVE DONE IN THE PAST BUT IT IS NEEDED SO WE CAN CONTINUE TO INCENTIVIZE THE MOST NEEDED TYPE OF HOUSING THAT WE NEED, OF NEW PRODUCTION IN OUR COMMUNITY. WE USE THE TERM AMI QUITE A BIT AND YOU PROBABLY HAVE SEEN SOME OF THESE GRAPHICS BEFORE. IT IS PART OF OUR PUBLIC INFORMATION CAMPAIGN WHERE WE WANT TO GO BEYOND JUST THE NUMBER TO REALLY SHOW WHO NEEDS HOUSING AFFORDABILITY IN SAN ANTONIO.

WE USE AREA MEDIAN INCOME TO DESCRIBE THE NUMBER OF PEOPLE WHO LIVE IN A HOUSEHOLD AND HOW MUCH INCOME THAT HOUSEHOLD HAS. WHEN WE SAY UNITS FOR 30% AMI, WE'RE REALLY SAYING UNITS FOR FAMILIES WHO ARE MAKING LESS THAN $24,000 A YEAR. SO THIS IS PART OF A GRAPHIC.

IT'S ON OUR WEBSITE, BROCHURE, AND LOTS OF INFORMATION WE CONTINUE TO PUT OUT WHEN WE TALK ABOUT WITH THE COMMUNITY, WITH OUR PARTNERS WHY ARE WE LOOKING FOR THIS TYPE OF HOUSING, TO REALLY SHOW WHO ARE THESE HOUSING UNITS, WHO ARE YOUR NEIGHBORS THAT NEED AFFORDABLE HOUSING AND WHAT ARE WE TRYING TO INCENTIVIZE. AS MENTIONED, OUR BOND FUNDS GO TO INCENTIVIZE UNITS AT 30% AMI AND 50% AMI. BUT OUR SINGLE-FAMILY HOME OWNERSHIP OPPORTUNITIES GO TO HELP FAMILIES AT 80% OF THE AREA MEDIAN INCOME. SO WE DO HAVE LOTS OF DIFFERENT FAMILIES IN SAN ANTONIO AND WE WANT TO MAKE SURE OUR INCENTIVES KEEP THAT DIVERSITY IN MIND AND WE ARE INCENTIVIZING MANY DIFFERENT TYPES OF HOUSING OPTIONS. ALL OF OUR RFPS ARE CONTINUING TO BE GUIDED BY THE GUIDING PRINCIPLES SET OUT BY THE HOUSING COMMISSION AND ACKNOWLEDGED BY OUR MAYOR AND COUNCIL. LOOKING AT ENSURING THOSE PROJECTS SELECTED CONTINUE TO PRIORITIZE DEEP AFFORDABILITY. WE'RE LOOKING FOR PROJECTS THAT ARE SHOVEL READY, THAT ARE LEVERAGING OUR CITY DOLLARS WITH OTHER SOURCES SO OUR DOLLARS STRETCH EVEN FURTHER. WE'RE LOOKING AT PROJECTS THAT HAVE DESIGN AND CONSTRUCTION PRIORITIES THAT ARE AIMED AT ENSURING ALL UNITS ARE BUILT WITH UNIVERSAL DESIGN IN MIND AND THAT EXCEED OUR CODE STANDARDS IN TERMS OF SUSTAINABILITY. WE'RE LOOKING AT WHERE PROJECTS ARE BEING PROPOSED AND ACCESS TO TRANSIT. AS WE HAVE DONE IN THE PAST, ANY NEW CONSTRUCTION PROJECT WILL COMPLETE A DISPLACEMENT IMPACT ASSESSMENT WHICH WE

[01:45:01]

FOUR SO FAR BUT WE HOPE TO DO EVEN MORE WITH THIS NEXT FUNDING ROUND.

SO IN TOTAL, WE WILL HAVE $35.8 MILLION AVAILABLE IN THE RENTAL HOUSING CATEGORY.

WE HAVE BOND FUNDS THAT HAVE $21.4 MILLION. SOME OF THESE FUNDS ARE BECAUSE SOME PROJECTS HAVE BEEN UNABLE TO FULFILL THE FUNDING REQUIREMENTS TO SECURE THEIR OTHER FINANCING, SO THEY'VE BEEN DECLINED OR RETURNED TO THE CITY. SO WE ARE ADDING THEM INTO THIS PARTICULAR FUNDING ROUND. AND THE FUNDING THAT IS FROM OUR RENTAL HOUSING CATEGORY OR RENTAL REHAB CATEGORY IS FROM PREVIOUS SOLICITATIONS WHERE WE DID NOT HAVE ENOUGH PROJECTS THAT MET OUR BOND PARAMETERS, SO THAT IS FUNDING STILL YET TO BE AWARDED. IT IS ONE SOLICITATION BUT FOR NEW RENTAL HOUSING SPECIFICALLY, WE'LL HAVE $12.5 MILLION. FOR REHAB OF EXISTING, WE'LL HAVE JUST OVER $13 MILLION. IN THE PERMANENT SUPPORTIVE HOUSING CATEGORY, WE WILL HAVE $4.2 MILLION FOR NEW CAPITAL PROJECT AND ALMOST A MILLION DOLLARS IN FUNDS SPECIFICALLY TO PAY FOR THE CASE MANAGEMENT AND OPERATING SERVICES OF RUNNING THE PSH DEVELOPMENT. THAT FUNDING COMES FROM THE TOWNE TWIN VILLAGE AND THEY WERE AWARDED A STATE GRANT AND WERE ABLE TO RETURN OUR BOND FUNDS SO WE CAN PUT THAT BACK OUT THERE AND HOPEFULLY CREATE MORE PSH UNITS.

OUR LAST CATEGORY IS HOME OWNERSHIP. WE HAVE A TOTAL OF $5 MILLION. ALL OF THAT IS OUR HUD, HOME, AND CDBG FUNDS.

AGAIN, IN TOTAL ALMOST $36 MILLION TO AWARD THIS FUNDING ROUND.

FOR THE SCORING CRITERIA WE ARE USING FOR OUR COMBINED RENTAL HOUSING SOLICITATION, WE ARE LOOKING AT THE SAME SCORING CRITERIA WE HAVE USED IN THE PAST WHERE THE MAJORITY OF POINTS GOES FOR PROJECTS AND CONSIDERING WHAT THEIR AFFORDABILITY MIX. AGAIN, WE ARE RAISING THAT MINIMUM TO 15% OF UNITS SET ASIDE AS DEEPLY AFFORDABLE HOUSING. PROJECTS THAT INCLUDE OR HAVE A NONPROFIT PARTNER GET A SET ASIDE OF 10 POINTS. AND THEN THE GAP REQUEST, WE'RE LOOKING AT WHAT OTHER FUNDS ARE THEY RAISING, HOW MUCH ARE THEY ASKING FROM THE CITY IN RELATION TO HOW MANY AFFORDABLE UNITS AND IS THE PROJECT READY TO GO.

WE ALSO HAVE A SET ASIDE SPECIFICALLY FOR THE UNIT SPECIFICATIONS WHERE COUNCIL MEMBERS AND SCORING COMMITTEE WILL EVALUATE OUR PROJECTS IN A TRANSIT-ORIENTED DEVELOPMENT IN MIND. ARE THEY ALONG AN ART LINE OR WHAT PART OF THE CITY ARE THEY BEING PROPOSED. LASTLY, WE HAVE INCLUDED A SET ASIDE FOR THE VETERAN OWNED SMALL BUSINESS PREFERENCE PROGRAM.

I WILL NOTE THAT THIS FUNDING ROUND THERE IS NO SBEDA PREFERENCE DUE TO THE INCLUSION OF FEDERAL FUNDS IN THIS PARTICULAR ROUND. OUR SCORING MEMBERS WILL INCLUDE MEMBERS OF THE CITY MANAGER'S OFFICE, OUR DEPARTMENT, AS WELL AS OTHER CITY EXPERTS INCLUDING HISTORIC PRESERVATION, PUBLIC WORKS, PLANNING, DIA, AND DEVELOPMENT SERVICES. AND THEN WE WILL PARTNER WITH VIA TO HELP US EVALUATE ALL PROPOSALS WE RECEIVE. SINCE WE ARE INCLUDING HOUSING BOND FUNDS, WE WILL RECOMMEND INCLUDING TWO MEMBERS OF THE CITIZEN BOND COMMITTEE.

WE DID BRIEF THE HOUSING COMMISSION ON THIS INFORMATION ABOUT TWO WEEKS AGO AND THEY ALSO ASKED FOR PARTICIPATION IN REVIEWING PROPOSALS, SO WE'RE RECOMMENDING A REPRESENTATIVE FROM THE HOUSING COMMISSION IN AN ADVISORY CAPACITY. THE NEXT CATEGORY IS PERMANENT SUPPORTIVE HOUSING AND WE WILL BE USING EXPANDING OUR LOCAL DEFINITION TO BE IN

[01:50:04]

WHAT WE WILL CONTINUE TO LOOK FOR ARE PROJECTS THAT ARE NOT JUST BUILDING SUPPORTIVE HOUSING BUT ARE ALSO PROVIDING THE ON-SITE RESIDENT SUPPORT SERVICES.

THAT CAN INCLUDE THINGS LIKE MEDICAL OR MENTAL HEALTH CARE, CASE MANAGEMENT SERVICES. REALLY WITH THE GOAL BEING TO ENSURE THAT THE PEOPLE WHO LIVE IN THE PSH COMMUNITY HAVE THE SUPPORT AND STABILITY THEY NEED TO STAY HOUSED AND TO STAY SUPPORTED. THIS PARTICULAR RFP IS BEING COORDINATED WITH CLOSE TO HOME AND DEPARTMENT FOR HUMAN SERVICES AND THEY BOTH WILL HELP US EVALUATE THE PROPOSALS . WE HAVE $4.2 MILLION FOR CONSTRUCTION AND THE REMAINING FUNDS ARE SET ASIDE TO HELP COVER THE FIRST ONE TO TWO YEARS OF SERVICES. THIS SCORING MATRIX IS SIMILAR TO PREVIOUS FUNDING ROUNDS BUT, AGAIN, WE HAVE REMOVED THE SMALL BUSINESS ECONOMIC DEVELOPMENT ADVOCACY PROGRAM DUE TO THE INCLUSION OF THE FEDERAL FUNDING. SO THE LARGEST AMOUNT OF POINTS GOES TO THE CONSIDERATIONS OF WHAT TYPE OF PERMANENT SUPPORTIVE HOUSING IS BEING BUILT, WHO IS IT FOR, WHO IS OUR TARGET AUDIENCE, AND WHAT ARE THE ON-SITE SERVICES BEING PROVIDED. AND THE REMAINING POINTS GO TO ITEMS SUCH AS DEVELOPMENT EXPERIENCE. AGAIN, LOOKING AT THE GAP REQUESTS AND THE PROJECT READINESS, WHERE THE PROJECT IS PROPOSED TO BE BUILT AND THE ON-SITE, THE DISPLACEMENT IMPACT ASSESSMENT THAT OUR TEAM WILL HELP CONDUCT.

THE SCORING COMMITTEE DOES INCLUDE MEMBERS OF THE CITY MANAGER'S OFFICE, OUR DEPARTMENT, HUMAN SERVICES, CLOSE TO HOME, AND VIA AGAIN WILL HELP US EVALUATE THE PROPOSALS. INCLUDING ALSO SOMEONE AGAIN FROM THE CITIZENS BOND COMMITTEE. THE HOUSING COMMISSION RECOMMENDED THAT WE INCLUDE A RESIDENT WITH LIVED EXPERIENCE TO HELP US EVALUATE THE PROJECTS SO WE'LL BE WORKING WITH OUR SISTER DEPARTMENT DHS TO HELP US IDENTIFY SOMEONE WHO CAN HELP EVALUATE THE PROJECTS IN AN ADVISORY CAPACITY.

OUR FINAL CATEGORY IS THE HOME OWNERSHIP. AGAIN, THIS DOES INCLUDE JUST CDBG AND HOME FEDERAL FUNDS. WE HAVE $5 MILLION IN TOTAL.

THIS PARTICULAR CATEGORY TARGETS FAMILIES UP TO 80% OF THE AREA MEDIAN INCOME OR BELOW WITH A PRIORITY FOR SERVING FAMILIES AT 60% OF THE AREA MEDIAN INCOME OR BELOW. OUR SCORING CRITERIA REMAINS UNCHANGED FROM PREVIOUS ROUNDS. AGAIN, WE DO NOT HAVE THE LOCAL PREFERENCE POINTS OR THE SBEDA POINTS BECAUSE OF THE FEDERAL FUNDING. THE LARGEST AMOUNT OF POINTS GOES TOWARDS THE AFFORDABILITY. AGAIN, WHAT ARE THE AMI LEVELS OF THE FAMILIES, WHO ARE THE PARTNERS THAT ARE BUILDING THE PROJECT, WHERE IS IT BEING PROPOSED TO BE BUILT, AND THEN WHAT IS THE DEVELOPMENT EXPERIENCE.

FOR OUR SCORING COMMITTEE MEMBERS WE AGAIN INCLUDE MEMBERS OF THE CITY MANAGER'S OFFICE AND OUR DEPARTMENT AND WE'LL BE SUPPORTED BY PUBLIC WORKS, PLANNING, VIA, AND AGAIN THIS TIME A MEMBER OF THE HOUSING COMMISSION ABLE TO SERVE IN A VOTING CAPACITY THE TIMELINE FOR THESE RFPS, AFTER WE DID BRIEF THE HOUSING COMMISSION A COUPLE OF WEEKS AGO, AFTER TODAY'S B SESSION WE EXPECT TO RELEASE THE RFP NEXT WEEK. RESPONSES DUE TOWARDS THE END OF JANUARY. IT'S OPEN FOR ABOUT 45 DAYS AND THEN WE EXPECT TO COME BACK TO CITY COUNCIL AT A FUTURE B SESSION IN APRIL WITH OUR FUNDING RECOMMENDATIONS. SO THAT CONCLUDES THE PRESENTATION.

I'M HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE. >> MAYOR NIRENBERG: THANK YOU VERY MUCH, VERONICA. I DON'T HAVE ANY COMMENTS OTHER THAN I'M A LITTLE DISAPPOINTED THAT THE PRESS BOX CLEARED OUT. I GUESS IT'S BECAUSE THIS IS NOT CALLED PROJECT MARVEL. MAYBE WE SHOULD HAVE A NAME FOR OUR HOUSING EFFORTS.

PROJECT AVENGER IS ONE I'LL SUGGEST. BUT THIS IS IMPORTANT INFORMATION FOR PEOPLE TO HAVE BECAUSE JUST AGAIN REFLECTING ON THE TWO PRESENTATIONS. WE DON'T DO THE FIRST PRESENTATION UNLESS WE'RE GETTING THE SECOND PRESENTATION RIGHT AND I WANT PEOPLE TO UNDERSTAND THAT. THE HOUSING EFFORTS THAT YOU ALL HAVE UNDERTAKEN HAVE BEEN TRANSFORMATIONAL. WE SAW THAT ON THE PROGRESS SLIDE.

THIS ONE IS ALSO GOING TO CONTINUOUSLY -- OR CONTINUE TO PUT US IN A BETTER POSITION TO ADDRESS SOME OF THE MOST IMPORTANT NEEDS OF OUR CITY.

CONGRATULATIONS TO YOU ALL. I LOOK FORWARD TO SEEING THE NEXT STEPS OF THIS PARTICULAR SOLICITATION COME BACK. I DO KNOW MY COLLEAGUES MAY HAVE SOME SUGGESTIONS ABOUT REFINING SOME OF THE TARGETING OF THIS, WHICH BASED ON SOME THINGS I HAVE ALREADY HEARD WE'LL BE SUPPORTIVE OF.

KEEP UP THE GREAT WORK AND LOOK FORWARD TO OUR JANUARY SUMMITS WHERE WE WOULD INVITE EVERYBODY OUT TO HEAR ABOUT THE DIFFERENT ASPECTS OF OUR HOUSING STRATEGY IN SAN ANTONIO AND THE PROGRESS THAT WE'VE MADE. MY ASK, LORI TO YOU IS THAT

[01:55:06]

THEY DID VOTE TO SUPPORT THESE EFFORTS. WE'LL GO STRAIGHT INTO

CONVERSATION NOW WITH COUNCILMEMBER COURAGE. >> COURAGE: THANK YOU, MAYOR. VERONICA, I WAS LOOKING AT THE NUMBER OF 30% AMI UNITS YOU PROJECTED RIGHT NOW AND I HAVE TO SAY I'M PLEASED BECAUSE ABOUT 28% OF WHAT YOU HAVE LISTED ON SLIDE 3 ARE 30% AMI. AND I THINK THAT IS PROBABLY ONE OF THE MOST CRITICAL AREAS THAT WE NEED TO FIND MORE AFFORDABLE HOUSING.

I'M KIND OF SURPRISED THAT WE GOT TO THAT NUMBER BECAUSE MOST OF THE PROPOSALS I HEARD COMING IN WERE SAYING WE'LL GIVE 10% TO 30% AMI OR WE'LL DO 15%,

30% AMI. >> MANY OF THE PROJECTS WE HAVE INCENTIVIZED ARE OPPORTUNITY HOME PROJECTS. EVEN IF THEY GO UP TO 60% THEY ALL HAVE VOUCHERS, THEY'RE INCOME BASED. THE INDIVIDUALS THERE ARE AT 30% AMI OR BELOW.

EVEN THOUGH WE HAD THE 10% MINIMUM MANY DID CHOOSE TO GO BEYOND, ESPECIALLY IN THE RENTAL PRODUCTION CATEGORY. THE MORE UNITS THE BETTER CHANCES OF FUNDING.

>> COURAGE: LET ME TALK MORE ABOUT THE RENTAL PRODUCTION AREA.

I KNOW WE'VE GOT A PARTNERSHIP THAT'S BEEN WORKING PRETTY GOOD WITH THE SAN ANTONIO HOUSING TRUST. AND YOUR DEPARTMENT. I ALSO KNOW A LOT OF PROPOSALS COME FORWARD THAT NEVER GET COMPLETED. ABOUT HOW MANY PROGRAMS THAT YOU HAVE MONITORED AND THAT THE CITY HAS PARTICIPATED IN HAVE HAD TO BE CANCELED FOR SOME REASON, OUT OF X NUMBER, HOW MANY HAVE NOT GONE THROUGH?

>> WE CAN GET THAT EXACT NUMBER BUT I DO BELIEVE WE HAVE HAD ABOUT FIVE BOND OR FEDERAL-FUNDED PROJECTS THAT DID DECLINE THEIR AWARDS. FOUR OF THEM WERE ALL IN THE RENTAL REHAB CATEGORY. WE HAD LARGE RENTAL REHAB THAT WEREN'T ABLE TO RAISE THEIR OTHER FUNDING SOURCES. IT DOES HAPPEN BUT THAT'S WHY WE'RE ON ROUND FIVE.

WHEN THAT DOES HAPPEN IS TO KNOW ABOUT IT, TRY AND SUPPORT THE PARTNER AS MUCH AS POSSIBLE. ONCE WE RECOGNIZE IT'S NOT GOING TO HAPPEN, RECLAIM THOSE BOND FUNDS AND GO THROUGH THIS EFFORT TO PUT THEM OUT AS SOON AS

POSSIBLE. >> COURAGE: IS THAT FOUR OR FIVE OUT OF 20 PROJECTS?

>> YES. IT WAS ORIGINAL 28 PROJECTS AND NOW WE'RE DOWN TO 23.

WE CAN DOUBLE CHECK THOSE NUMBERS. >> COURAGE: FOR THE PROJECTS THAT HAVEN'T GONE THROUGH, WHAT'S BEEN THE BIG CAUSE OF THAT?

>> MOSTLY IT'S THAT THEY'RE NOT ABLE TO SECURE THEIR OTHER FUNDING SOURCES.

MAYBE THEY DIDN'T GET THE TAX CREDITS OR THEIR BANK FINANCING FELL THROUGH.

>> COURAGE: MAYBE THOSE FOUR OR FIVE COULD HAVE GONE THROUGH WITH BETTER FUNDING

OPPORTUNITIES. >> LIKELY, YES. >> COURAGE: I KNOW WE HAVE GONE THROUGH AN EXPERIENCE OVER THE LAST COUPLE OF YEARS WHERE ALL OF A SUDDEN THE RATES ARE GOING WAY UP AND I BRING THIS UP FOR THE PURPOSE OF OFFERING THE COUNCIL TO GIVE SERIOUS CONSIDERATION TO EXPANDING THE CITY'S PARTICIPATION IN HOUSING FUNDING. WE PUT $150 MILLION INTO THE LAST BOND PROJECT AND I THINK WE NEED TO BE TRIPLING THAT MONEY. I DON'T THINK WE SHOULD BE WAITING UNTIL 2027 TO GET IT ON A BOND ISSUE AND PASSED AND START WORKING ON THOSE THINGS IN 2028. FOUR YEARS FROM RIGHT NOW WE WOULD BE WORKING ON THOSE NEW ONES IF WE WAITED THAT LONG. BUT PEOPLE CAN'T WAIT THAT LONG. THEY WANT THEM BUILT BY 2027 OR 2028.

I WOULD PROPOSE THAT WHAT WE SHOULD BE LOOKING AT AS A COUNCIL IS CONSIDERING A HALF A BILLION DOLLARS, A $500 MILLION BOND ISSUE DEDICATED TO HOUSING.

TRIPLING WHAT WE'RE SPENDING ON HOUSING NOW. I THINK ALL OF US RECOGNIZE THE CITY HAS THE ADVANTAGE OF BORROWING MONEY AND WE CAN BORROW IT AT A LOWER

[02:00:01]

A LOT OF TIMES IT'S NOT A MATTER OF BEING ABLE TO AFFORD A 30-YEAR PAYBACK ON $25 MILLION TO BUILD SOMETHING. FOR 30 YEARS THEY CAN AFFORD 10% OR 9%. BUT IT'S THE INTERIM FINANCING OFTENTIMES THAT KILLS THEM. WHEN THEY NEED FUNDING UNTIL THAT FINAL MORTGAGE MONEY IS AVAILABLE AND THEY END UP HAVING TO BORROW AT 12% OR 15% FROM A HEDGE FUND JUST TO GET IT STARTED. THAT'S WHERE I THINK THE CITY CAN PLAY A MUCH DEEPER ROLE IN PROVIDING FUNDING, MAYBE 1% OR 2% OVER OUR COST.

ONE OF THE QUESTIONS THAT I WANTED TO ASK, WE HAVE PUT IN -- I THOUGHT I SAW IT IN HERE. A CERTAIN AMOUNT OF CITY FUNDING FOR THESE PROJECTS.

HOW MUCH HAS THE CITY PUT IN? YOU HAD IT ON HERE.

>> WE HAVE DONE $67 MILLION IN BOND FUNDS AND $21 MILLION IN OUR FEDERAL

FUNDS. >> COURAGE: AND THAT MONEY IS NOT BEING PAID BACK TO

US, IS IT? >> SOME OF IT IS. A LOT OF IT IS IN A LOAN, USUALLY AT 0% INTEREST. SOME OF THE -- LIKE THE PERMANENT SUPPORTIVE

HOUSING, THOSE ARE USUALLY FORGIVABLE LOANS OR GRANTS. >> COURAGE: SO WE ARE GETTING REPAID. SO I THINK THAT'S THE VALUE OF DOING THIS IS WE CAN HAVE A RECIPROCAL OPPORTUNITY TO KEEP BUILDING MORE HOUSING. AND I KNOW THAT WE'RE LOOKING AT A 2027 BOND PROJECT FOR THE WHOLE CITY, LIKE WE DID IN 2022 AND 2017. BUT I DON'T THINK WE CAN WAIT FIVE MORE -- EVERY FIVE YEARS TO INVEST IN MORE AFFORDABLE HOUSING. AND I'D REALLY LIKE THE COUNCIL TO CONSIDER DOING AN EARLIER, MAYBE A 2026 HOUSING BOND.

AT THAT RATE, BORROWING $500,000 FOR HOUSING AND THEN LET'S SEE IF WE CAN MAYBE WAIT AN EXTRA YEAR UNTIL 2028 TO DO ANOTHER OVERALL CITY BOND PROJECT.

WE HAVE BEEN INVESTING A LOT EVERY FIVE YEARS. BUT HOUSING IS CRITICAL.

IF PEOPLE DON'T HAVE AN AFFORDABLE PLACE TO LIVE IT LEADS TO SO MANY PROBLEMS FOR PEOPLE IN OUR COMMUNITY AND FOR THE COMMUNITY ITSELF.

SO THAT'S SOMETHING THAT I HOPE THAT WE CONSIDER BECAUSE I THINK WE'VE DONE GOOD WORK. I THINK WE'VE HAD GOOD PARTNERS HELPING US WITH THIS BUT THERE JUST IS A LOT MORE THAT NEEDS TO BE DONE. I WOULD LIKE TO ASK THE CITY STAFF TO TAKE A LOOK AT IF WE WERE TO TRY AND PUT TOGETHER A HOUSING BOND PROPOSAL USING A LOT OF THE TEMPLATES FOR WHAT WE HAVE BEEN DOING WITH THAT MONEY NOW FOR A BOND PROPOSAL IN MAYBE 2026 AND SEEING IF THAT'S SOMETHING WE CAN'T MOVE HOUSING FORWARD WITH. SO I'D LIKE TO SEE THE STAFF LOOK AT THAT AND GIVE US A REPORT ON IF THAT COULD BE DONE. AND IF IT'S WITHIN THE REALM OF THE AFFORDABILITY THAT WE HAVE BUILT INTO OUR CURRENT TAX SYSTEM.

I WOULDN'T WANT TO SEE IT IF WE'RE GOING TO HAVE TO RAISE TAXES BUT IF WE CAN DO IT WITHIN OUR FUNDING CAPABILITIES NOW, I'D LIKE TO SEE US MOVE THAT UP

SOONER RATHER THAN LATER. THANK YOU, MAYOR. >> COUNCILMAN, I'LL CORRECT MYSELF. THERE ARE SIX BOND PROJECTS THAT RETURNED THEIR FUNDING.

NOT FIVE. >> COURAGE: A COUPLE OF HUNDRED APARTMENTS EACH ONE.

THERE'S A THOUSAND OR MORE OPPORTUNITIES MISSED. THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER COURAGE. COUNCILMEMBER ALDERETE

GAVITO. >> GAVITO: THANKS SO MUCH FOR THIS PRESENTATION, VERONICA. IT WAS GREAT, AS USUAL. IT'S ALWAYS EXCITING TO THINK OF THESE PROJECTS THAT WILL COME FORWARD. I'M PROUD OF THE CONTRIBUTIONS THAT THE CITY HAS MADE TOWARDS INCREASING OUR AFFORDABLE HOUSING STOCK. I HAVE A QUESTION. ONE OF THE BIG CONCERNS THAT COMES UP IN DISTRICT 7 WITH SOME OF OUR AFFORDABLE HOUSING STOCK IS THE MAINTENANCE OF THESE UNITS AND OF THE BUILDINGS. ON SLIDE 3 WITH THE OVERALL BOND IMPACT, WHAT DOLLARS DO WE HAVE DESIGNATED TOWARDS THE ONGOING MAINTENANCE AND

UPKEEP? >> SINCE THEY ARE PRIVATELY OWNED, WE DO MAKE THAT A REQUIREMENT AND WE LOOK AT THAT DURING OUR UNDERWRITING IS HOW MUCH PER UNIT OR FOR THE TOTAL COMPLEX IS THE DEVELOPER, THE PROPERTY MANAGER SETTING ASIDE FOR ONGOING MAINTENANCE. ALL OF OUR PROJECTS HAVE AN AFFORDABILITY TERM OF AT LEAST 20 YEARS, SOME AS MUCH AS 40 YEARS SO WE LOOK AND MAKE SURE THEY'RE SETTING ASIDE ENOUGH. AND THAT IS REVIEWED BY OUR UNDERWRITING TEAM.

IF THE PROJECT DOESN'T HAVE ENOUGH, IT CAN BE KICKED BACK AND WE HAVE TO

[02:05:01]

NEGOTIATE THAT. >> GAVITO: THANK YOU. ON SLIDE 5, WHEN YOU ALL WERE SAYING THAT Y'ALL RECEIVED FEEDBACK FOR THE MINIMUM TO GO TO 15% UP FROM

10%, WHAT WAS THAT FEEDBACK? >> THE FEEDBACK IS COMING FROM THIS BODY HERE AND LOOKING ALSO AT OUR SHIP METRICS. 30% -- NEW 30% UNITS ARE GREATLY NEEDED IN A COMMUNITY. IT'S THE ONE AREA WE DO NEED TO MAKE MORE PROGRESS TOWARDS OUR TEN-YEAR GOAL. WE'RE DOING A GOOD JOB BUT SUCH A HARD AREA TO BUILD IN. SO IT'S REALLY HEARD FROM THE COUNCIL MEMBERS IN OUR PREVIOUS SOLICITATION ASKING CAN WE LOOK AT INCREASING THAT. AND WE DO HAVE FUNDING, ESPECIALLY BY COMBINING THE FUNDING FOR RENTAL PRODUCTION AND REHAB INTO ONE SOLICITATION.

WE FEEL CONFIDENT THAT THAT WILL HELP ENSURE WE CAN ACTUALLY FUND THOSE LARGER

GAPS BY MAKING THAT HIGHER REQUIREMENT. >> GAVITO: OKAY.

SOUNDS GOOD. THANK YOU. I WANTED TO GIVE Y'ALL KUDOS ON SLIDE 6. I THINK THAT IT DOES A GREAT JOB OF THE HUMAN EXPERIENCES AT THESE DIFFERENT LEVELS. IT HELPS PEOPLE UNDERSTAND WHAT AFFORDABLE HOUSING LOOKS LIKE AND I THINK IT REDUCES THE STIGMA. I THINK THIS IS SOMETHING WE SHOULD TAKE TO OUR RESIDENTS SOMETIMES WHEN WE GET PUSHBACK BECAUSE I THINK THAT SOMETIMES THERE IS THAT STIGMA THAT ALL OF US ARE CONSTANTLY FIGHTING.

THANK YOU FOR PUTTING THAT TOGETHER. I'M DEFINITELY GOING TO USE IT. ON SLIDE NO. 7, WHAT ARE OUR CURRENT GOALS FOR DEEPLY

AFFORDABLE UNITS? >> FOR NEW PRODUCTION -- THIS IS STRAIGHT FROM OUR STRATEGIC HOUSING IMPLEMENTATION PLAN. FOR NEW 30% UNITS WE'RE LOOKING AT A GOAL OF ALMOST 6,900. AND TO DATE WE ARE AT ABOUT 1600 UNITS. THAT'S DONE UNDER CONSTRUCTION OR IN THE PIPELINE. THAT'S ABOUT 23% OF OUR GOAL.

THAT IS AN AREA WHERE WE NEED TO CONTINUE TO MAKE PROGRESS.

INTERESTINGLY ENOUGH THE OTHER HALF OF THAT GOAL IS ON THE PRESERVATION.

SO PRESERVING UNITS THAT ARE ALREADY DEEPLY AFFORDABLE. THAT GOAL IS 909 UNITS AND WE HAVE WELL BEYOND EXCEEDED THAT GOAL OVER 3,000, ALMOST 4,000 IN OUR COMPLETED OR PIPELINE OF PRESERVATION. WE REALLY WANT TO ENSURE THAT THE INCENTIVES WE'RE PUTTING OUT THERE HELP GO TOWARDS THE AREAS WHERE WE CONTINUE TO NEED TO MAKE

PROGRESS. >> GAVITO: OKAY. THANK YOU SO MUCH.

AND WHEN WE ARE LOOKING AT AREAS FOR DEEPLY AFFORDABLE UNITS I'M ASSUMING WE'RE TAKING ACCESS TO TRANSPORTATION INTO CONSIDERATION.

>> YES. THAT'S PART OF OUR SCORING MATRIX.

SOME OF OUR CONSIDERATIONS OF EXACTLY WHERE IS THE PROJECT BEING BUILT.

FOR OUR DEFINITION OF ACCESS TO TRANSIT, WE'RE LOOKING FOR PROJECTS THAT ARE NO MORE THAN A QUARTER OF A MILE AWAY FROM A BUS STOP. WITH THIS FUNDING ROUND WE'LL PROBABLY LOOK AT PUTTING A LARGER EMPHASIS ON PROJECTS ALONG THE FUTURE ADVANCED RAPID TRANSIT LINES, SINCE THAT ARE OUR LARGER STRATEGY IS4, TO FOCUS ON TRANSIT-ORIENTED DEVELOPMENT ALONG THOSE LINES.

>> GAVITO: ALSO TOO, I WOULD THINK IT'S NOT ONLY JUST, YOU KNOW, A QUARTER

MILE ACCESS TO A BUS LINE BUT ALSO HOW FREQUENTLY -- >> THAT'S AN EXCELLENT

POINT. >> GAVITO: SOME OF THEM ARE ONCE AN HOUR, WHICH IS KIND OF RIDICULOUS. ALSO TOO I DID WANT TO NOTE THAT I APPRECIATE THE NEED TO PROVIDE HIGH-SPEED INTERNET IN THE MOBILE INFRASTRUCTURE.

THIS IS GOING TO HELP US ADDRESS THE DIGITAL DIVIDE THAT'S STILL PRESENT HERE.

AND THOSE ARE ALL MY COMMENTS. THANKS SO MUCH.

THANK YOU, MAYOR. >> THANK YOU. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER ALDERETE GAVITO. COUNCILMEMBER KAUR.

>> KAUR: THANK YOU, MAYOR. THANK YOU SO MUCH FOR THIS PRESENTATION.

I THINK THE MAYOR SAID IT RIGHT. THIS WORK IS REALLY IMPORTANT AND WE'VE GOT TO MAKE SURE WE GET IT RIGHT. I'VE HAD A CHANCE TO TALK TO NHS THREE OR FOUR TIMES THIS WEEK AND I'M GRATEFUL FOR THE WORK THAT YOU ALL ARE DOING. I JUST HAVE A COUPLE OF QUESTIONS.

IN THE CONVERSATIONS WE HAVE BEEN HAVING WITH THE SCHOOL DISTRICTS, PARTICULARLY AROUND ALL OF THE DEVELOPMENT THAT WE'RE HAVING DOWNTOWN, A LOT OF THE FEEDBACK THAT WE ARE HEARING IS THAT THERE IS NOT ENOUGH FOCUS ON THE URBAN CORE AND PARTICULARLY THE AREAS CLOSEST TO DOWNTOWN WITH THE AFFORDABLE HOUSING THAT WE ARE CREATING. OUR GOALS CHALLENGE THAT WE'RE HAVING IS LAND IS EXPENSIVE CLOSE TO DOWNTOWN.

AND THAT'S MAKING IT CHALLENGING TO DO LARGE-SCALE PROJECTS.

I KNOW, AS A MEMBER OF THE HOUSING TRUST, A LOT OF OUR PROJECTS COMING TO US, WE HAVE SOME GOOD ONES COMING UP RECENTLY THAT I KNOW ARE IN DISTRICT 5 AND DISTRICT 1

[02:10:01]

THEY ARE HISTORIC, COMPLICATED, AND THEY'RE NOT AS EASY TO TAKE ON IF YOU'RE A DEVELOPER. AND SO I GUESS IF YOU COULD BRING UP THE SLIDE POINTS, I THINK THE MULTIFAMILY SCORING. THERE ARE SOME DESIGN AND CONSTRUCTION PRIORITIES -- YEAH, THIS SLIDE IS PERFECT. SO THERE IS SOME DESIGN AND CONSTRUCTION PRIORITIES CALLED OUT HERE AND WHAT I WOULD LIKE TO PROPOSE AND SEE IF YOU ALL -- AND HOW MY COLLEAGUES KIND OF PERCEIVE THIS AS IS TO SPECIFICALLY CALL OUT THE URBAN CORE AS THE LOCATION PRIORITY. OUR URBAN CORE THAT HAS FOUR OF OUR SCHOOL DISTRICTS THAT SERVE OUR MOST UNDERSERVED POPULATIONS ARE SAISD, EDGEWOOD, HARLANDALE, AND SOUTH SAN. AND THEY HAVE THE BIGGEST AMOUNT OF NEED IN TERMS OF STUDENTS WHO ARE HOMELESS, IN TERMS OF STUDENTS WHO HAVE A LOT OF MOBILITY BECAUSE THEY'RE MOVING APARTMENT TO APARTMENT TO CHASE THE BEST DEAL. I WOULD LOVE TO SEE US PLACE A PRIORITY IN THIS RFP SPECIFICALLY FOR URBAN CORE DEVELOPMENTS. AND THEN THE OTHER THING THAT THEY HAD MENTIONED TO ME TO ASK FOR IS FAMILY. SO EVEN WHEN WE SAW -- THERE WAS A PROJECT THAT CAME THROUGH THAT WE ARE GLAD THAT'S MOVING FORWARD, THERE WAS A LOT OF COMMUNITY MEMBERS THAT HAD TO PUSH TO HAVE TWO AND THREE-BEDROOM UNITS ALLOCATED FOR THE AFFORDABLE UNITS IN THOSE COMPLEXES.

A LOT OF TIMES IT'S EASIER FOR THE DEVELOPER JUST TO MAKE THE STUDIO OR THE EFFICIENCY UNITS AS THE 30 OR 50% AMI BUT THAT DOESN'T HELP ADDRESS OUR FAMILIES' NEEDS AND WE WANT OUR FAMILIES TO BE ABLE TO STAY IN AND CLOSE TO THE SCHOOLS THEY ARE AROUND AND HAVE BEEN GOING TO. I GUESS MY REQUEST FOR HERE WOULD BE UNDER THE EQUITY AND LOCATION PARAMETER TO ADD A FOCUS ON THE URBAN CORE AND THEN ALSO TO ADD, UNDER THE DESIGN AND CONSTRUCTION PRIORITIES, TO ADD TWO AND THREE-BEDROOM UNITS AS THE DEEPLY AFFORDABLE UNITS.

IF WE GO TO THE SLIDE THAT SHOWS THE SCORING RUBRIC, I THINK IT'S TWO DOWN.

MAYBE -- YEAH. NINE? NOT THIS ONE.

YEAH. IT'S 10. THANK YOU.

I GUESS THE WAY TO MAKE SURE THAT THOSE -- BECAUSE WE CAN ADD THEM TO THE LIST BUT IF THEY DON'T HAVE VALUE ON THE SCORING RUBRIC IT MAY NOT MAKE A DIFFERENCE IN THE RESULTS. SO I WOULD BE INTERESTED IN SEEING MAYBE THAT NONPROFIT STATUS GO FROM 10 TO 5 AND ADDED TO THE UNIT SPECIFICATION CONSTRUCTION PRIORITIES TO MAKE THAT AS A 20 ON THE RUBRIC. THE REASON WHY I'M SAYING THAT IS IT'S VERY EASY FOR A DEVELOPER TO PARTNER WITH A NONPROFIT OR SAY SO AND SO NONPROFIT IS ALSO BEING A PART OF THIS DEVELOPMENT. I DON'T KNOW -- I WOULD THINK THEM MAKING MORE TWO AND THREE-UNIT DEEPLY AFFORDABLE WOULD BE MORE IMPORTANT THAN IF IT WAS A NONPROFIT LISTED ON THE APPLICATION OR NOT.

THOSE ARE MY TWO SPECIFIC REQUESTS IS TO ADD MORE VALUE TO THE UNIT SPECIFICATIONS AND THE EQUITY LOCATION PIECE. AND THEN ALSO TO MAKE SURE THAT WE'RE CALLING OUT URBAN CORE AND SPACE FOR FAMILIES. SO WOULD LOVE TO HEAR -- LORI, GO AHEAD. WERE YOU GOING TO SAY SOMETHING?

>> HOUSTON: I JUST WANTED TO ADD WE WILL LOOK AT THE TARGETED APPROACH IN TERMS OF THE URBAN CORE. WHEN IT COMES TO THE DESIGN AND TARGETING FAMILY UNITS, IT'S A LITTLE TRICKIER BECAUSE YOU CAN'T DO DEEPLY AFFORDABILITY.

DEEPLY AFFORDABILITY WITHOUT TAX CREDITS. AND SO THE TAX CREDITS IS RUN BY THE STATE. THEY TIE TAX CREDIT AWARDS TO SCHOOL DISTRICT PERFORMANCE. AND SO THAT IS ONE OF THE REASONS WHY IT'S HARD TO GET FAMILY UNITS IN THESE PROJECTS BECAUSE THE TAX CREDIT PROGRAM DOESN'T SUPPORT THAT. AND THAT'S WHY WE END UP GETTING A LOT OF EFFICIENCIES. SO WE NEED TO LOOK INTO THAT A LITTLE BIT MORE TO SEE IF THAT WOULD HURT OR HELP. AND WE'LL LET YOU KNOW WHAT WE END UP DOING.

>> KAUR: I THINK THAT WOULD BE GREAT, ESPECIALLY AS WE TALK ABOUT WHAT WE'RE ADVOCATING FOR IN THE LEGISLATIVE SESSION. BECAUSE SCHOOLS IN DISTRICTS HAVEN'T RECEIVED RATINGS IN THE LAST THREE OR FOUR YEARS SO WE DON'T KNOW WHAT CURRENT SCHOOL RATINGS ARE. NOT GETTING INTO A DEBATE ABOUT THE A THROUGH F SYSTEM, WE HAVEN'T HAD A RATING. MAYBE THERE IS A DIFFERENT METRIC WE CAN ADVOCATE FOR IN THOSE PROJECTS. I HEAR WHAT YOU'RE SAYING AND THERE ARE SOME BRIGHT SPOTS THAT WE CAN USE AS FOCUS AREAS IN THE URBAN

CORE BECAUSE WE -- BUT I DO UNDERSTAND THAT. >> HOUSTON: AND WE KNOW

[02:15:03]

AND WE HAVE A NEED FOR ONE BEDROOM AS WELL. THERE'S JUST A NEED FOR DEEP AFFORDABILITY, REGARDLESS. BUT WE'LL LOOK SPECIFICALLY AT THAT ISSUE BECAUSE I AM CONCERNED. I DON'T WANT TO PENALIZE ANYBODY FOR APPLYING WHEN THE TAX CREDIT PROGRAM WOULDN'T SUPPORT THAT DEVELOPMENT.

>> KAUR: I WOULD AGREE. MAYBE IT'S JUST LI LISTED AS A PRIORITY BUT AS ONE OF THE CONSIDERATION AND NOT POINT REDUCER BUT MAYBE ADD IT. THANK YOU FOR THAT.

THAT WOULD BE MY REQUEST FOR THE SCORING. THE LAST QUESTION THAT I JUST HAD WAS WE ACTUALLY SAW THIS SLIDE FOR THE TOD EVENT THAT WE DID.

GOING BACK TO SLIDE -- I THINK IT'S 6 THAT COUNCILWOMAN ALDERETE GAVITO WAS TALKING ABOUT. THIS IS WHAT THE CITY USES FOR AMI FOR OUR HOUSING PROJECTS. IT'S A LITTLE DIFFERENT THAN WHAT BEXAR COUNTY AND HUD

USE. I NOTICED THE LEVELS WERE -- >> YEAH, SO WE GO BY THE HUD STANDARDS AND THEN FOR OUR CITY AFFORDABILITY, WE CONSIDER AFFORDABLE HOUSING AT 60% OF THE AREA MEDIAN INCOME OR BELOW. AND FOR HOME OWNERSHIP, WE ACTUALLY GO UP TO 120%. BUT FOR THIS FUNDING ROUND, CONSIDERING WE'RE USING

FEDERAL FUNDS, THAT MAX IS 80%. >> KAUR: IT'S A FAMILY OF

WHAT? >> OF THREE. THAT'S THE AVERAGE FAMILY

SIZE IN SAN ANTONIO. >> KAUR: GOT IT. >> YES.

USUALLY WHEN WE EVALUATE A PROJECT AND THEIR RENT LEVELS AND AMI LEVELS, WE ADJUST IT BY THE FAMILY SIZE WHEN WE'RE INCOME QUALIFYING A FAMILY.

>> KAUR: I THINK ADDING JUST A LITTLE BIT OF THAT LANGUAGE ON THE SIDE OF THIS CHART BEFORE WE SHARE IT, JUST SO FOLKS KNOW, HEY, IF I MAKE A LITTLE OVER THAT, I MIGHT QUALIFY AS 60% AMI IF THEY HAVE A LARGER FAMILY. THANK YOU FOR YOUR WORK ON THIS AND I HOPE WE CAN MAKE SOME OF THOSE ADJUSTMENTS FOR OUR SCHOOL DISTRICTS.

THANKS, MAYOR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER KAUR.

AS IT RELATES -- QUICKLY INTERJECT. THE LEGISLATIVE SESSION, BECAUSE BOTH PARTIES, I BELIEVE RHETORICALLY ARE TALKING ABOUT AFFORDABILITY IN HOUSING, THIS MIGHT BE AN OPPORTUNITY TO, YOU KNOW, OFFER SOME LEGISLATIVE SOLUTIONS TO ADDRESS HOUSING THROUGH THE SCHOOL DISTRICT FUNDING MECHANISMS.

COUNCILMEMBER WHYTE. >> WHYTE: THANKS, MAYOR. THANK YOU FOR THE PRESENTATION AND ALL THE WORK. I WANT TO BEGIN BY SAYING, YOU KNOW, HOW HOUSING IS A BASIC HUMAN NEED. WE NEED MORE AFFORDABLE HOUSING IN SAN ANTONIO. I STRONGLY BELIEVE THAT AND I'M FOR IT.

SO ALL THE WORK IN THAT REGARD I THINK IS GREAT AND VALUABLE.

WITH THAT SAID, I HAVE SOME CONCERNS AND MAYBE SOME NEED FOR CLARIFICATION HERE.

I WAS REVIEWING THE STAFF MEMO AND IT BEGINS, AS YOU DID TODAY, BY TALKING ABOUT THE VOTERS APPROVING, YOU KNOW, THE FUNDING FOR THIS. SO I WENT BACK AND I LOOKED AT EXACTLY WHAT WAS ON THE BALLOT BACK IN 2021. AND IT SAYS THE ISSUANCE OF BONDS IN THE AMOUNT OF $150 MILLION FOR AFFORDABLE HOUSING PROJECTS AND LEVIES A TAX AND PAYMENT THEREOF. THAT'S WHAT WAS ON THE BALLOT, DOESN'T TELL US MUCH ABOUT WHAT IT WAS. FURTHER L ALONG IN YOUR MEMO, YOU TALK ABOUT THREE MONTHS, I GUESS, PRIOR, THERE WAS A HOUSING BOND COMMITTEE THAT SET OUT SOME PARAMETERS FOR THIS AFFORDABLE HOUSING BOND, AND IT WAS APPROVED BY COUNCIL IN FEBRUARY OF 2022.

SO I WENT AND I PULLED THE ORDINANCE FROM FEBRUARY OF 2022, AND THERE IN THE THIRD PARAGRAPH IT SAYS THE COMMITTEE MET FOUR TIMES, RECOMMENDED SIX HOUSING BOND PARAMETERS. AND SO WE -- WE -- FURTHER ALONG IN THE ORDINANCE, IT SAYS THESE BOND PARAMETERS WERE IN ATTACHMENT 1. AND SO WE WENT TO ATTACHMENT 1.

AND I BELIEVE I'M HOLDING UP THE SIX PARAMETERS SET FORTH BY THE COMMITTEE, AND THERE IN NUMBER ONE, WE TALK ABOUT PROJECTS RECEIVING BOND FUNDING MUST SERVE SAN ANTONIO'S -- AND IT'S BOLDED -- MOST VULNERABLE COST-BURDENED LOW-INCOME POPULATIONS. AND ONE OF THE GROUPS OF PEOPLE, IT GIVES AN EXAMPLE OF, WHO I GUESS COULD TAKE ADVANTAGE OF THESE HOUSING -- THE HOUSING BOND, ARE UNDOCUMENTED IMMIGRANTS.

AND SO MY QUESTION TODAY, I GUESS, IS IT -- ARE WE SAYING THAT SOME OF THIS BOND MONEY COULD GO TOWARDS PROJECTS THAT ARE SPECIFICALLY DESIGNED TO

[02:20:02]

HOUSE UNDOCUMENTED IMMIGRANTS? >> SO THE PARAMETERS THAT COUNCIL ADOPTED BY RESOLUTION ARE GUIDING PRINCIPLES, AND THAT'S HOW THEY WERE ADOPTED. EVERY SINGLE PROJECT AND FUNDING HAS TO STILL COME TO COUNCIL FOR BROAD APPROVAL. THE PARAMETERS DEVELOPED BY THE COMMITTEE ARE MEANT TO GUIDE HOW WE REVIEW PROJECTS AND THE EMPHASIS WAS ON MAKING SURE THAT THE PROJECTS THAT WE'RE CREATING HELP SERVE VULNERABLE POPULATIONS AND IT GAVE LOTS OF EXAMPLES OF DIFFERENT VULNERABLE POPULATIONS. SO WE HAVE SEEN MANY DIFFERENT HOUSING OPTIONS WHERE THEY TARGET ALL TYPES OF FAMILIES OR WHETHER IT'S A SMALLER PROJECT TARGETING OLDER ADULTS EXCLUSIVELY, SO WE SHARE THAT ALL BE THE COUNCIL WHEN WE BRING THE FUNDING RECOMMENDATION, SO IT'S REALLY A COUNCIL DECISION TO DECIDE WHICH PROJECTS THAT WE DECIDE

ON. >> WHYTE: AND I APPRECIATE THAT, AND YOU REFERENCED THE OLDER POPULATION, AND THERE'S DISABLED POPULATION.

THERE'S A LOT OF CATEGORIES THAT ARE LISTED HERE, AND ONE OF THEM IS UNDOCUMENTED IMMIGRANTS. AND SO, AGAIN, MY QUESTION IS, SO COULD A DEVELOPER, FOR EXAMPLE, THAT WANTED TO PUT FORTH A PROJECT SPECIFICALLY TO HOUSE UNDOCUMENTED IMMIGRANTS TAKE ADVANTAGE

OF THIS MONEY IN OUR HOUSING BOND? >> I MEAN, I --

>> SEGOVIA: LET ME ANSWER THAT ONE, COUNCILMAN. AGAIN, THE CRITERIA WAS SET AS AN EXAMPLE OF THOSE POPULATIONS THAT MAY BE MORE IN NEED OF AFFORDABLE HOUSING, IT WASN'T DESIGNED TO SAY SPECIFICALLY HOUSING FOR

A PARTICULAR GROUP. >> WHYTE: I UNDERSTAND THAT.

I UNDERSTAND THAT. SO THEN I GUESS, IS THE ANSWER TO MY QUESTION -- I MEAN, YES, UNDOCUMENTED IMMIGRANTS ARE LISTED -- ARE LISTED HERE AS AN EXAMPLE OF A VULNERABLE POPULATION. AND WE ARE SAYING HERE IN PARAMETER ONE THAT UNDER THESE HOUSING BOND PARAMETERS THAT PROJECTS THAT RECEIVE BOND FUNDING HAS TO SERVE THIS VULNERABLE POPULATION.

SO, I MEAN, I GUESS WE'RE SAYING HERE, ARE WE NOT, THAT FUNDING FROM THIS BOND COULD GO TO HOUSING UNDOCUMENTED IMMIGRANTS; IS THAT FAIR?

>> I THINK AT THE END OF THE DAY, WE'RE RELYING ON THE PROPERTY MANAGEMENT TEAM TO GO THROUGH THEIR DUE DILIGENCE, FOLLOW ALL FAIR HOUSING LAWS, HOWEVER THAT THEY SCREEN APPLICANTS FOR THE HOUSING, THE LEASES, WE

WOULD BE SENSITIVE TO ALL OF THOSE THINGS. >> WHYTE: OKAY.

I APPRECIATE YOUR ANSWER, AGAIN. I'M NOT SURE THAT I HEARD AN ANSWER TO THE QUESTION. LET ME ASK IT THIS WAY: OF THE PROJECTS THAT HAVE ALREADY BEEN COMPLETED, AND I THINK ON ONE OF THE SLIDES, WE TALKED ABOUT -- WE'VE ALREADY -- 23 PROJECTS AND 4100 UNITS HAVE BEEN PRODUCED OR PRESERVED, 383 ARE PRODUCED, DO WE KNOW OUT OF THE UNITS THAT WE'VE ALREADY DONE VIA THE HOUSING BOND, HOW MANY

ARE OCCUPIED OR HAVE BEEN OCCUPIED BY UNDOCUMENTEDTS? >> WE DON'T HAVE THAT INFORMATION, BUT I CAN SAY THAT NONE OF THE PROJECTS THAT COUNCIL APPROVED WERE SPECIFIC TO SAY WE WILL ONLY SERVE UNDOCUMENTED IMMIGRANTS

OR ANYTHING LIKE THAT. >> WHYTE: OKAY. SO THERE'S BEEN NO SPECIFIC PROJECT AT THIS POINT JUST FOR UNDOCUMENTED IMMIGRANTS?

>> CORRECT. >> WHYTE: COULD THERE BE IN THE FUTURE.

>> THAT'S UP TO COUNCIL TO APPROVE ANY PROBABILITIES THAT WE

BRING FORWARD. >> WHYTE: OKAY. SO COUNCIL COULD CHOOSE TO USE THIS HOUSING BOND MONEY FOR A PROJECT SPECIFICALLY DESIGNED FOR

UNDOCUMENTED IMMIGRANTS? >> WALSH: COUNCILMAN, IT -- IT DEPENDS ON THE

SOLICITATION, RIGHT? SO. >> WHYTE: SO IT'S A

POSSIBILITY. >> WALSH: IT'S A POSSIBILITY, YES.

I GUESS LEGITIMATELY IT COULD HAVE BEEN A POSSIBILITY IN THE PRIOR SOLICITATIONS THAT WE'VE GONE THROUGH. THIS WILL BE THE THIRD TIME WE'VE GONE THROUGH -- FIFTH ONE. BUT WE HAVEN'T RECEIVED

ANY YET. >> WHYTE: YEAH. >> WALSH: SO I GESES IT I GUESS IT WAS A POSSIBILITY IN THE PAST, WHAT YOUR QUESTION IS.

>> WHYTE: IS IT A POSSIBILITY GOING FORWARD.

>> WALSH: IT'S A POSSIBILITY GOING FORWARD.

>> WHYTE: OKAY. >> WALSH: AND SECONDLY, VERONICA'S RIGHT.

THAT COMES BACK TO COUNCIL. THIS IS A

PRESOLICITATION. >> WHYTE: YEAH. >> WALSH: AND MY THIRD POINT IS, BECAUSE THIS IS PRESOLICITATION AND THOSE ARE GUIDING PRINCIPALS, IF YOUR FEEDBACK FOR THE SOLICITATION IS THAT THAT'S NOT WHAT YOU WANT

TO SEE, THEN THAT'S WHAT WE WANT TO HEAR TODAY. >> WHYTE: YEAH.

SO THAT IS MOST CERTAINLY MY FEEDBACK. AND, YOU KNOW, SINCE WE'RE THROWING OUT SUGGESTIONS HERE, I MEAN, I DON'T KNOW WHAT WE HAVE TO DO TO AMEND THIS ORDINANCE FROM A COUPLE OF YEARS AGO AND STRIKE OUT THIS LANGUAGE IN THIS HOUSING BOND PARAMETER NUMBER ONE, IF THAT'S EVEN POSSIBLE, BUT I'LL TELL YOU THIS. THERE OO SO MANY PEOPLE, SAN ANTONIO RESIDENTS -- DISABLED THAT NEED -- COUNCILMAN, THIS IS A HOUSING RFP, WE'RE NOT GOING TO GET INTO AN IMMIGRATION DEBATE UP HERE SO PLEASE KEEP

YOUR. >> WHYTE: I'M TALKING ABOUT THE FOLKS THAT NEED

[02:25:01]

>> MAYOR NIRENBERG: GO AHEAD AND SPEAK ON THE POLICIES ALL YOU WANT.

>> WHYTE: THAT'S EXACTLY WHAT I'M DOING. THERE'S SO MANY FOLKS IN SAN ANTONIO THAT NEED AFFORDABLE HOUSING. VETERANS, DISABLED FOLKS, ELDERLY PEOPLE THAT YOU MENTIONED, PEOPLE WITH LOW INCOMES, ET CETERA, RIGHT? AND SO THE WORK IS EXTREMELY IMPORTANT.

MY HOPE MOVING FORWARD IS THAT WE CONTINUE TO PUSH FOR MORE AFFORDABLE HOUSING ACROSS OR CITY, BUT THAT WE FOCUS THE FUNDS ON SAN ANTONIO RESIDENTS, ON UNITED STATES CITIZENS AND NOT ON UNDOCUMENTED FOLKS, AND SO THAT'S MY REQUEST. THANKS, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER WHYTE.

THE NOTION THAT WE ARE SOMEHOW NOT SERVING SAN ANTONIO RESIDENTS, ANY SAN ANTONIO RESIDENTS THROUGH THE RFP IS COMPLETELY ABSURD.

COUNCILMEMBER VIAGRAN? >> VIAGRAN: THANK YOU, MAYOR.

THANK YOU, VERONICA, AND I THINK -- I THINK THE ORDINANCE WAS WRITTEN VERY WELL, AND I WAS SO PLEASED WHEN WE VOTED ON IT.

AND I THINK IT WAS ONE OF THE THINGS THAT THE COMMUNITY UNDERSTOOD THAT WE NEEDED HELP WITH. NOW, YOU'VE GOTTEN A LOT OF IDEAS, BUT I WANT TO TALK SPECIFICALLY ABOUT THIS IN PARTICULAR AND THE PROPOSED RENTAL HOUSING PRODUCTION, AND THAT'S SLIDE 10, REHABILITATION, PRESERVATION AND ACQUISITION. I AM HOPING -- IS IT POSSIBLE -- BECAUSE I KNOW -- I'VE MENTIONED BEFORE, I HAVE SPECIFIC EXISTING AFFORDABLE HOUSING THAT HAS NOT BEEN ABLE TO BE REHABBED.

IS THERE A WAY WE CAN PROVIDE LIKE A LIST FOR YOU GUYS IN THE DIFFERENT AREAS TO SAY, THIS IS WHAT WE SEE THAT IF WE CAN GET THIS REHABBED, WE'D LIKE SO IT DOESN'T TURN INTO KIND OF A SITUATION WHERE MARKET

RATE COMES IN ON THESE LEVELS? >> SURE.

YES. IF YOU HAVE A LIST OF PROPERTIES, EVEN MORE HELPFUL IF YOU HAVE A CONNECTION ALREADY TO ANY OF THE OWNERSHIP, IF NOT, WE'LL DO SOME RESEARCH. WE CAN MAKE SURE THEY'RE AWARE THAT THE SOLICITATIONS ARE OUT, INVITE THEM TO JOIN US FOR THE PRESOLICITATION -- OR THE BRIEFING THAT WE HAVE AND ANSWER ANY QUESTIONS THEY MAY HAVE. WE USUALLY DO TRY AND ENSURE WE DO SOME PROACTIVE OUTREACH, PARTICULARLY FOR ANY PROJECTS THAT ARE ALREADY IN NEED OR EVEN SOME PROJECTS THAT ARE COMING UP ON THE END OF THEIR AFFORDABILITY CONVENANCE. WE HAVE A LIST OF THOSE AS WELL, THAT WE'LL BE SURE GETS A COPY OF OUR RFP.

>> VIAGRAN: YEAH. AND THE OTHER ASPECT IS BECAUSE I -- IN THE SOUTH SIDE IN PARTICULAR, AND I LIKED NUMBER 4 WITH THE CREATIVE PROJECT FUNDING. AND, YOU KNOW, I KNOW WE HAVE A LOT OF REFUGEE COMMUNITIES HERE THAT HAVE TRIED TO WORK WITH US.

THE ONE THAT COMES, AND THEY'RE DOING FARMING OUT, BUT THEY LIVE ALL IN APARTMENTS IN DISTRICT 8, AND I WAS LIKE IT WOULD BE GREAT IF WE COULD BUILD HOUSING CLOSER TO THE RURAL PARTS WHERE THEY COULD LIVE CLOSER TO WHERE THEY'RE WORKING CURRENTLY. I THINK -- I KNOW THAT GETS A LITTLE TRICKY IN TERMS OF HOW WE DO THAT, BECAUSE I KNOW I HAVE SCHOOLS THAT ARE LIKE, YOU KNOW, WE WANT TO HAVE OUR TEACHERS COME AND HAVE APARTMENTS AND LIVE IN THE COMMUNITY THAT THEY WORK IN, AND SO THEY'VE LOOKED AT THAT, TOO, IN TERMS OF THE CREATIVE PROJECTS FUNDING. AND SOME OF THOSE TEACHERS ARE ALL ACTUALLY IN PROGRAMS WHERE THEY'RE COMING FROM MEXICO TO TEACH HERE, THAT WE'VE -- THERE MAYOR AND I HAVE BOTH BEEN DON TO MONTERREY TO HAVE THOSE CONVERSATIONS WITH THE EDUCATORS THERE. I THINK THERE'S A LOT OF OPPORTUNITY TO GET CREATIVE AND TO LOOK AT WHAT THE RFP PROCESS IS, BUT I REALLY WANT TO MAKE SURE THAT WE KIND OF UNDERSTAND THAT.

THE OTHER THING IS -- AND I'LL BRING THIS UP, AND ANDY, YOU CAN STOP ME IF I'M CROSSING A LINE, BUT, YOU KNOW, CPS IN THAT OFFSYSTEM SALES OF, YOU KNOW, $50 MILLION THAT WE HAVE, THAT COULD REALLY HELP WITH SOME ACCESSORY DWELLING UNIT PROGRAMS AND THE INFRASTRUCTURE THAT'S NEEDED FOR MAKING THAT HAPPEN FOR THAT AFFORDABILITY AND THAT HOUSING AND GENERATIONAL HOUSING AND WEALTH THAT WE TALK ABOUT. SO I'D LIKE TO MAKE -- I'D LIKE TO SEE IF WE COULD TALK ABOUT THAT, OR IF Y'ALL COULD GET CREATIVE AND JUST SEE -- THIS IS HOW MUCH -- I KNOW YOU HAD 1.4 MILLION, BUT IF YOU GUYS TOLD ME, HEY, TO GET IN A SECOND METER WOULD COST THIS MUCH, SO IF WE HAD AN X AMOUNT OF DOLLARS TO PUT IN SECOND METERS, THAT WOULD WORK OUT REALLY WELL, TOO. AND THEN I REALLY LIKE SLIDE 6. I LIKE THE WAY THAT YOU HAVE PUT IN THE HOURLY,

[02:30:02]

THE WHOLE STORY ABOUT JAVIER BEING A TRUCK DRIVER AND THAT THIS IS THEIR REALITY, WHAT THEY MAKE HOURLY, WHAT THEY MAKE WEEKLY AND HOW THEY'RE TRYING TO LIVE IN A CITY THAT'S GROWING IN SAN ANTONIO, I THINK IS IMPORTANT. AND LIKE I SAID, I CHALLENGE MY COUNCIL COLLEAGUES TO LOOK AT THE AFFORDABLE HOUSING IN THEIR DISTRICT AND MAKE SURE THAT WE CONTINUE TO PROVIDE THAT FOR YOU, BECAUSE THERE IS GOING TO -- WE'VE SEEN IT. WE KNOW. YOU KNOW, WE'VE SEEN IT IN SOAP WORKS, WE'VE SEEN IT IN MOBILE HOME PARKS IN DISTRICT THREE AND IN DISTRICT FOUR, SO I THINK IT'S IMPORTANT, WE'RE LIKE, THIS IS A COMMUNITY THAT WE HAVE THAT WE WOULD LIKE TO SEE CONTINUE, BUT WE KNOW THERE'S A RISK OR A POTENTIAL THAT IF THEY DON'T GET THE FUNDING THEY NEED TO REHAB, IT COULD GO THE WAY OF A MARKET RATE IN OUR GROWING AREA, SO I'D LIKE TO MAKE SURE WE GET THAT LIST.

BUT WELL DONE. I LOOK FORWARD TO THESE RFPS MOVING FORWARD AND REACHING THOSE GOALS. I'M PROUD TO SERVE ON THE SAN ANTONIO HOUSING TRUST AND IF EFFORTS WE'VE MADE THERE, AND I THINK THAT WE'VE GOT -- WE'RE MAKING GOOD PROGRESS, BUT I THINK WE -- WE ALSO, AS COUNCILMEMBERS, NEED TO

BE CREATIVE ALSO. THANK YOU. >> THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER VIAGRAN.

COUNCILMEMBER CASTILLO? >> CASTILLO: THANK YOU, MAYOR.

THANK YOU, VERONICA, FOR THE PRESENTATION. I FEEL THAT TODAY'S PRESENTATION WITH THE CONVENTION CENTER AND GIVEN THE HOUSING RFP IS VERY TELLING OF THE SAN ANTONIO'S BOOMING, WHILE IT'S [INDISCERNIBLE] AND THE WORK THAT WE HAVE AHEAD OF US, BUT I'M EXTREMELY PROUD OF THE WORK IN THE HOUSING AND NEIGHBORHOOD SERVICES, $150 MILLION IN HINDSIGHT, YOU'VE BEEN ABLE TO GET CREATIVE AND ENSURE WE'RE MAKING THE GREATEST IMPACT WE CAN WITH SUCH LIMITED FUNDING.

I KNOW THIS IS ABOUT THE RFP AND PROCESS, BUT SIMILAR TO COUNCILMAN COURAGE, I WOULD LIKE TO SEE US IDENTIFY WAYS WE COULD INVEST.

I RECENTLY HAD A CITY OF MINNEAPOLIS PRESENTATION SENT SO ME AND I WAS LOOKING AT PROJECTS THAT THEIR CITY COUNCIL WAS APPROVELING.

I'M GOING TO READ WHAT I THINK WE SHOULD STRIVE FOR AND I THINK THERE'S VALUE IN EXPLORING WHAT THEIR CAPITAL STACK IS. BUT TO EXPLORE HOW ARE THEY FUNDING SOME OF THESE PROJECTS, SO, FOR EXAMPLE, ONE THAT'S BEING RECOMMENDED TO THEIR CITY COUNCIL IS A PROJECT THAT HAS 43 UNITS AT 30% AMI, 25 UNITS AT 40% AMI, 19 UNITS WITH RENTAL ASSISTANCE, AND FOUR HOMELESS UNITS. AND THESE ARE ALL THREE- TO FOUR-BEDROOM UNITS THAT WE'RE TALKING ABOUT. THEN ANOTHER PROJECT EXAMPLE THAT THEY LAID OUT WAS 19 UNITS AT 30% AMI, 41 AT 50% AMI, 15 UNITS WITH RENTAL ASSISTANCE AND EIGHT HOMELESS UNITS.

THEY JUST HAVE THIS REALLY IMPACTFUL MAKEUP, AND I'M CURIOUS TO WHAT THEIR CAPITAL STACK LOOKS LIKE TO MAKE SUCH A GREAT IMPACT.

SIMILAR TO DR. KAUR, I WOULD LIKE FOR US TO RESEARCH AND SEE IF THERE'S OPPORTUNITY FOR US TO SUPPORT THE PROJECTS THAT ARE GOING TO OFFER MORE BEDROOMS. IN CONVERSATION WITH A COUPLE OF OUR SUPERINTENDENTS WITHIN DISTRICT FIVE, THIS IS SOMETHING THAT THEY'VE ASKED THAT I ADVOCATE FOR, FOUR OUT OF FIVE SCHOOL DISTRICTS WITHIN DISTRICT FIVE HAD TO CLOSE SCHOOLS, AND, OF COURSE, ONE OF THE THREE REASONS THEY CITED WAS LACK OF ACCESS TO AFFORDABLE HOUSING, SO IF THERE'S A WAY THAT WE CAN GIVE PREFERENTIAL POINTS OR TAKE THAT INTO CONSIDERATION IS SOMETHING THAT I THINK WE NEED TO BE LOOKING AT.

>> CONSENSUS TO REDISTRIBUTE SOME OF THOSE POINTS, AND THEN TO THE COUNCILWOMAN'S POINT EARLIER, ABOUT LOOKING AT THE URBAN CORE IN THE PAST, WE'VE KIND OF DEFINED THAT MAYBE EVEN AS THE CRAG, BUT WE CAN

LOOK AT SOME OPTIONS. >> CASTILLO: THANK YOU. AND THEN, AGAIN, I WANT TO COMMEND YOU ALL ON THE PROPOSED FOR THE 9.6 MILLION WITH THE TOD STRATEGIC LAND ACQUISITION, THE MATCH GRANTS, THE ACCESSORY DWELLING UNITS AND THE COMMUNITY LAND TRUST. THESE ARE IMPACTFUL, AND I AGREE WE SHOULDN'T WAIT UNTIL 2027, SO I'M HOPEFUL THAT MY COLLEAGUES AND THE NEXT COHORT OF COUNCIL WILL CONTINUE TO ADVOCATE TO MAKE INVESTMENT IN SAN ANTONIO'S AFFORDABLE HOUSING.

THOSE ARE ALL MY COMMENTS FOR YOU, VERONICA AND TEAM.

BUT LASTLY, I THINK IT'S IMPORTANT TO EMPHASIZE, RIGHT, THAT THIS COUNCIL RECENTLY MOVED FORWARD TO REMOVE 381 NATURALLY OCCURRING AFFORDABLE HOUSING UNITEDS, AND I JUST DON'T APPRECIATE THE LACK OF INTEGRITY TO ADVOCATE AGAINST HOUSING FOR A SPECIFIC GROUP WHEN WE BLINDLY APPROVED

[02:35:01]

JUST DISAPPOINTED I DIDN'T SEE THAT SAME ENERGY.

THANK YOU, MAYOR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER

CASTILLO. COUNCILMEMBER PELAEZ? >> PELAEZ: IN 1934, PRESIDENT ROOSEVELT SIGNED INTO LAW THE FAIR HOUSING ACT.

THAT ACT SPECIFICALLY PROHIBITS ANY DISCRIMINATION ON THE PART OF A LANDLORD OR A HOME SELLER TO DENY HOUSING TO ANYBODY ON THE BASIS OF THEIR RELIGION, THEIR ETHNICITY, THE LANGUAGE THEY SPEAK, THEIR NATIONAL ORIGIN OR THEIR IMMIGRATION STATUS.

SO WE COULD ALL HERE UP HERE UNANIMOUSLY PASS A POLICY THAT WE WILL ONLY ALLOW THIS MONEY TO BE USED FOR THE RENTAL OF APARTMENTS TO INUITS, AND THERE'S NO LANDLORD THAT WOULD BE ABLE TO TAKE THAT MONEY AND ACCOMPLISH THAT POLICY GOAL. WE COULD UP HERE, ALL UNANIMOUSLY AGREE THAT WE WERE ONLY GOING TO USE THIS MONEY FOR UNDOCUMENTED ALIENS, AND IF WE DID THAT, THERE IS NO LANDLORD IN AMERICA WHO WOULD BE ABLE TO USE THE MONEY THAT WE SET ASIDE FOR THAT PURPOSE FOR THAT ILLEGAL PURPOSE. AND SO, NO, THIS COUNCIL CANNOT DO WHAT COUNCILMAN WHYTE WAS SUGGESTING, AND I EAT HATI'D HATE FOR THIS TO BECOME SOME SORT OF SCARECROW, RIGHT, ARGUMENT, THAT JUST DOESN'T EXIST.

THE OTHER THING, TOO, IS I REMEMBER FOUR YEARS AGO, I WAS IN D.C. WITH SALLY BASURTO AND JEFF COYLE AND THE MAYOR, AND THE MAYOR WAS AT THE MAYOR'S -- WAS IT THE CONFERENCE OF MAYORS, AND MITCH LANDREAUX, AT THE TIME, WHO WAS THE FORMER MAYOR OF NEW ORLEANS, RIGHT, AND HE WAS THEN THE SECRETARY OF HUD, SAID SOMETHING ASTONISHING, DURING HIS BIG KEYNOTE SPEECH, HE SAID, YOU KNOW, KEEP YOUR EYE ON SAN ANTONIO, THEY'RE DOING IT THE RIGHT WAY. AND THEY'RE ONE OF THE CITIES THAT IS SETTED UP FOR SUCCESS. AND HE WAS TALKING ABOUT OUR EFFORTS TO PULL DOWN THESE KINDS OF GRANTS AND TO BRING HOME THIS MONEY TO ACCOMPLISH THESE REALLY INNOVATIVE, CREATIVE PROGRAMS. AND I, TOO, THOUGHT THAT, YOU KNOW, $150 MILLION BOND PROGRAM -- AUDIO] -- BUT MATCHED WITH THIS LEGISLATIVE EFFORT AND THEN THIS PLAN ON HOW TO EXECUTE WITH THE SPENDING OF THIS MONEY, I THINK -- I THINK THIS IS SOMETHING THAT IS NOW EXCEEDING WHAT I EXPECTED BY MANY ORDERS OF MAGNITUDE. AND CONGRATULATIONS, SERIOUSLY.

THIS IS -- THE WORK YOU'VE DONE IS REALLY IMPORTANT.

AND I'M JUST -- I'M OVERWHELMED WITH HOW SOPHISTICATED AND ELEGANT THE SOLUTIONS YOU GUYS ARE COMING UP WITH. THE -- BUT I WILL SAY, THERE ARE TWO ADDITIONAL WAYS THAT WE CAN MAKE HOUSING MORE AFFORDABLE THAT AREN'T ADDRESSED IN HERE, AND I WOULD LIKE TO SEE IT AT A FUTURE -- AT A FUTURE MEETING. ONE OF THEM IS FOR COSA, SAWS AND CPS, FOR THEIR INSPECTIONS AND THEIR METERING AND ALL THAT, FOR THAT TO BE MORE NIMBLE, RIGHT? AND BECAUSE IF A BUILDER IS WAITING FOR THE INSPECTOR TO SHOW UP, AND IT TAKES DAYS, RIGHT, OR FOR THE DELIVERY OF THE TRANSFORMER OR WHATEVER, RIGHT, AND IT TAKES DAYS, ALL THAT -- AND IT TAKES WEEKS OR EVEN MONTHS, LIKE I'M HEARING IT TAKES, RIGHT, THAT'S MONEY, RIGHT, THAT THEY'RE HAVING TO SPEND, OR AT LEAST NOT MAKING.

AND THAT -- THAT DELTA IS MADE UP BY CHARGING MORE FOR THE HOUSING, RIGHT, OR CHARGING MORE FOR THE RENT. AND SO I DO BELIEVE THAT IF WE FIGURE OUT A WAY TO MEAK OUR PROCESSES MUCH MORE AGILE, THEN WE'LL BE ABLE TO PASS ON THOSE SAVINGS, BECAUSE WAIT TIME -- YOU KNOW, WASTING TIME COSTS MONEY, RIGHT? NOW, OF COURSE, YOU KNOW, THIS ONLY WORKS IF THE BUILDER PASSES ON THOSE COST SAVINGS, YOU KNOW, AND -- BUT HOPE SPRINGS ETERNAL. THE SECOND THING, I'LL TELL YOU, IS THAT I REMEMBER WHEN THE SHIP PRESENTERS, RIGHT, THE COMMUNITY LEADERS WHO PRESENTED THESHI THE SHIP POLICY TO US,, I REMEMBER THEY SAID THE FIRST 25,000 OF ANY HOME BUILT IN SAN ANTONIO IS ATTRIBUTED TO REGULATORY COST. BEFORE ANY STICK IS STUCK IN THE GROUND OR ANY BRICK IS LAID, $25,000 IS A SUNK COST JUST AD ATTRIBUTED TO GOVERNMENT REGULATION, RIGHT? I'D LIKE TO UNDERSTAND WHAT PORTION OF THAT IS COSA, RIGHT? OF OUR -- OF ALL THE REGULATIONS IN OUR REGULATORY SCHEME, WHAT PORTION -- AND HOW MUCH ARE WE COSTING, RIGHT, IN TERMS OF OUR -- OUR UDC, LET'S SAY, RIGHT? HOW MUCH ARE WE COSTING BUILDERS AND IS THERE -- AND JUST THROUGH THE LENS OF AFFORDABILITY, DO WE

[02:40:05]

REGULATIONS. DOES THAT MAKE SENSE? >> HOUSTON: IT DOES.

I DON'T RECALL THAT NUMBER BEING THROWN OUT. >> PELAEZ: IT WAS GENE

DAWSON, WHO SAID THAT. >> HOUSTON: WE WILL CONFIRM THAT.

THE ONE THING I WANT TO SAY IS THE MAYOR DID CREATE A TASK FORCE TO REMOVING BARRIERS TO AFFORDABLE HOUSING. WE HAVE MADE SEVERAL CHANGES BASED ON THOSE RECOMMENDATIONS THAT HELP REMOVE SOME OF THOSE COSTS ASSOCIATED WITH AFFORDABLE HOUSING. WE ALSO HAVE OUR FEE WAIVER PROGRAM, WHERE WE WAIVE ANY FEES NECESSARY TO BUILD HOUSING, BUT WE'LL LOOK INTO THAT TO BETTER UNDERSTAND WHERE THAT NUMBER'S COMING

FROM. >> WALSH: AND COUNCILMAN, WE'LL -- I REMEMBER THAT CONVERSATION, TOO. I DON'T REMEMBER TO YOUR POINT THAT THAT WAS BROKEN OUT, AND WE'LL WORK TO KIND OF UPDATE THAT NUMBER AND BREAK IT

OUT BETWEEN THE THREE AGENCIES. >> PELAEZ: YEAH, BECAUSE WE DID THIS SEVEN YEARS AGO, I THINK, WAS WHEN THEY FIRST PRESENTED IT.

AND THAT NUMBER WAS BROUGHT BACK UP TO ME LAST WEEK BY THE BUILDER COMMUNITY HERE IN TOWN, AND SO I DON'T KNOW IF IT'S BECOME URBAN MYTH, IF THERE'S ANY TRUTH TO IT, BUT I WOULD -- I DO THINK IT'S FAIR FOR PURPOSES OF A COMPLETE CONVERSATION ABOUT THIS TO UNDERSTAND WHAT WE, AS AN ORGANIZATION, COSA, COST BUILDERS AS THEY'RE PUTTING THESE HOUSES TOGETHER. AND THERE'S ALWAYS GOING TO BE SOME COST TO REGULATION, RIGHT? I GET THAT PEOPLE HAVE TO INSTALL SPRINKLERS, BUT I'D LIKE TO KNOW WHAT WE'RE COSTING PER SQUARE FOOTAGE, LET'S SAY, OR PER HOUSE, OR PER, YOU KNOW, MULTIFAMILY DEVELOPMENT.

I'LL LEAVE THAT THERE. GREAT JOB AGAIN. I WANT TO END ON A HIGH NOTE. YOU GUYS ARE EXCELLENT. I'M REALLY IMPRESSED.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER PELAEZ.

COUNCILMEMBER WHYTE? >> WHYTE: YEAH, SO I'M NOT TRYING -- MY PURPOSE TODAY IS NOT TO SPEAK TO DENY ANYBODY HOUSING. THAT IS NOT -- THAT IS NOT THE PURPOSE OF MY COMMENTS. BUT I DO THINK THE CITIZENS OF SAN ANTONIO EXPECT US TO USE THEIR MONEY ON THEM.

AND SO, YOU KNOW, I -- WE'RE NOT GOING TO HAVE THE DEBATE HERE AND NOW, YOU KNOW, WHETHER PUBLIC DOLLARS SHOULD OR SHOULDN'T BE SPENT ON UNDOCUMENTED IMMIGRANTS. I MEAN, WE CAN SAVE THAT FOR ANOTHER DAY, BUT I'M SIMPLY SAYING WHEN THESE HOUSING PARAMETERS WERE PUT INTO PLACE, THIS COMMITTEE HAD A DEBATE ABOUT WHETHER SOME OF THESE CATEGORIES SHOULD BE INCLUDED IN THE MOST VULNERABLE COST-BURDENED LOW-INCOME POPULATIONS, AND UNDOCUMENTED IMMIGRANTS MADE IT IN, AND THEN CITY COUNCIL VOTED ON THE ORDINANCE AND PASSED IT. TODAY I'M SIMPLY STATING, I WOULD LIKE US TO FOCUS OUR DOLLARS ON SAN ANTONIO RESIDENTS.

>> MAYOR NIRENBERG: COUNCILMAN. >> WHYTE: THANK YOU. >> MAYOR NIRENBERG: THE ISSUE HAS BEEN ADDRESSED ALREADY THROUGH THE LAW. AND WE ARE FOLLOWING THE LAW. THE ISSUE OF VULNERABLE POPULATION SPANS MANY CATEGORIES, SOME OF WHICH ARE PROTECTED. AND SO I AM GOING TO CLOSE THIS PART OF THE CONVERSATION SIMPLY BY SAYING EVERY CENT, EVERY RED CENT OF THE HOUSING BOND IS GOING TO SERVE SAN ANTONIO RESIDENTS.

AND THE NOTION THAT ANY IS NOT IS OUT OF HAND AND FACTUALLY INCORRECT.

AROUAND I WILL NOT STAND BY IDLY WHILE ONE MEMBER OF THIS BODY TRIES TO LAUNCH A CONSPIRACY THEORY ABOUT HOW OUR HOUSING BOND IS BEING USED. SO I HOPE THAT IS VERY CLEAR.

THE HOUSING BOND, WHICH WAS VOTER APPROVED BY RESIDENTS OF SAN ANTONIO, IS GOING TO SERVE ONLY RESIDENTS OF SAN ANTONIO, PERIOD, END OF STORY.

>> WHYTE: WELL, I HAD A COUPLE MINUTES LEFT. NO, I HAD A COUPLE MINUTES LEFT, MAYOR, IN MY SECOND ROUND. YOU CAN TALK ABOUT THE LAW, YOU KNOW, ALL YOU WANT AND WHETHER -- WHETHER IT'S LEGAL OR NOT. AND CONSPIRACY THEORY, I'M NOT PROMOTING ANY CONSPIRACY THEORY. AT ALL. I'M TALKING ABOUT A DOCUMENT THAT WAS ATTACHED TO THE ORDINANCE THAT'S REFERENCED IN THE MEMORANDUM FOR TODAY'S B SESSION. THIS WAS ATTACHED TO THE

2022 ORDINANCE. >> MAYOR NIRENBERG: DO YOU HAVE A QUESTION,

COUNCILMAN? >> WHYTE: I DON'T HAVE A QUESTION, BUT I'M GOING TO USE MY LAST TIME. THIS IS WHAT IT SAYS. AND AS WE'VE HEARD TODAY, THE POSSIBILITY EXISTS THAT A FUTURE PROJECT COULD USE OUR HOUSING BOND MONEY TO SERVE UNDOCUMENTED IMMIGRANTS. AND MY POINT IS, I THINK THAT'S INAPPROPRIATE AND I THINK OUR CITIZENS WANT US TO SPEND OUR DOLLARS

[02:45:04]

COUNCILMAN, ANDY HAS A STATEMENT. >> SEGOVIA: AS COUNCILMAN PELAEZ POINTED OUT, THERE WOULD BE SIGNIFICANT LEGAL CHALLENGES ON BOTH SIDES. IF THE COUNCIL WANTED TO DO A PROJECT THAT ONLY SERVED UNDOCUMENTED OR WANTED TO DO A PROJECT THAT DIDN'T, THERE WOULD BE SEVERE CHALLENGES ON BOTH SIDES. SO WHILE IT'S THEORETICAL, IT'S HIGHLY UNLIKELY THAT ANY PROJECT WOULD COME RECOMMENDED BY THIS STAFF THAT WOULD DO EITHER ONE OF THOSE TWO THINGS.

>> WHYTE: AND I APPRECIATE THAT, ANDY. AND, YOU KNOW, PART OF THIS CONVERSATION HAS TO BE HYPOTHETICAL, BECAUSE WE HAVE PROJECTS THAT ARE MOVING FORWARD, AND ALL WE CAN DO IS WORK WITH THE BOND PARAMETERS THAT ARE SET FORTH IN THE ORDINANCE, RIGHT? THAT'S ALL WE CAN DO.

AND I ASKED THE QUESTION TODAY, AND WE GOT THE ANSWER, THAT IT'S A POSSIBILITY THAT A DEVELOPER COULD COME FORWARD WITH A PROJECT TO USE THIS MONEY FOR UNDOCUMENTED IMMIGRANTS. AND THEN I HEARD, YES, IT WOULD COME TO CITY COUNCIL. AND THEN CITY COUNCIL COULD MAKE THE VOTE. ALL I'M SAYING IS, I DON'T BELIEVE OUR MONEY SHOULD BE USED IN THAT MANNER. I DO NOT BELIEVE THE CITIZENS OF SAN ANTONIO WANT THAT MONEY USED IN THAT MANNER EITHER.

THANK YOU, MAYOR. >> MAYOR NIRENBERG: THANK YOU, COUNCILMEMBER WHYTE. AND I WILL POSE ANOTHER HYPOTHETICAL, JUST TO CLOSE THIS DISCUSSION. IT IS HYPOTHETICALLY POSSIBLE THAT CITIZENS FROM THE PLANET VENUS CAN COME AND DEMAND HOUSING FROM OUR HOUSING BOND AND A DEVELOPER COULD PRESENT A PROPOSAL IN THAT MANNER, IT WOULD ALSO BE FACTUALLY CORRECT TO SAY, IT WOULD BE OUT OF HAND AND ILLEGAL FOR US TO PUT FORWARD THAT PROPOSAL BECAUSE WE CANNOT PROTECT -- WE CANNOT CREATE A PROPOSAL SPECIFIC TO THE CITIZENSHIP STATUS OF A RESIDENT OR NONRESIDENT. SO AM I RIGHT ABOUT THAT, ANDY?

>> SEGOVIA: IS THAT CORRECT, MAYOR, THAT'S THE POINT I WAS TRYING TO

MAKE. >> MAYOR NIRENBERG: SO THE HYPOTHETICALS ARE APPRECIATED FOR DRAMA, BUT THEY ARE -- ONLY SERVE THE PURPOSE OF CREATED UNFOUNDED FACTUALLY INCORRECT CONSPIRACIES ABOUT A VOTER-APPROVED BOND PROGRAM, WHICH IS VERY SUCCESSFUL AND DOING ITS JOB, AND I WANT TO THANK, AGAIN, OUR STAFF, AS WELL AS ALL THE COMMUNITY THAT HAS SUPPORTED THE PROGRAM TO HELP SHAPE IT AND ALSO IS HELPING TO HOUSE RESIDENTS OF SAN ANTONIO, MANY OF THEM VULNERABLE, LOW-INCOME RESIDENTS, WHO NEED HOUSING OPTIONS. SO WITH THAT -- WITH THAT BEING SAID, AT 4:55 P.M.

ON THE FOURTH DAY OF DECEMBER, 2024, OUR B SESSION IS NOW ADJOURNED. WE'RE GOING TO TAKE A FIVE-MINUTE BREAK AND THEN WE'LL BE BACK FOR PUBLIC

* This transcript was compiled from uncorrected Closed Captioning.