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GOOD AFTERNOON EVERYONE, AND WELCOME TO OUR ECONOMIC AND WORKFORCE DEVELOPMENT COMMITTEE ON THIS THIRD DAY OF DECEMBER, 2019, THE LAST MONTH OF THE DECADE.
SO LET'S GO AHEAD AND GET STARTED.
UM, LET'S DO A ROLL CALL, PLEASE.
CHAIRWOMAN REBECCA VRAN, COUNCIL MEMBER SHIRLEY GONZALEZ.
COUNCIL MEMBER MAN, MANNY PALAZ.
COUNCIL MEMBER JOHN RIDGE, RESIDENT.
THANK YOU ALL VERY MUCH, UH, FOR BEING
[1. 19-8967 Approval of the minutes from the Economic and Workforce Development Committee meeting on November 5, 2019.]
HERE WITH US.OUR FIRST ITEM ON THE AGENDA IS APPROVAL OF THE MINUTES FROM THE ECONOMIC WORKFORCE DEVELOPMENT COMMITTEE MEETING HELD ON NOVEMBER 5TH, 2019.
OH, I HAVE ONE MOTION, UH, TO APPROVE.
UM, NEXT WE HAVE ON OUR AGENDA THE
[2. 19-8779 A briefing on the Property Assessed Clean Energy (PACE) Act, the proposed City PACE Program, and professional service agreement with the Texas PACE Authority for program administration. [Carlos J. Contreras III, Assistant City Manager; Alejandra Lopez, Interim Director, Economic Development Department]]
BRIEFING ON THE PROPOSED ASSESSED CLEAN ENERGY ACT PACE, UH, THIS PROPOSED CITY PACE PROGRAM AND PROFESSIONAL SERVICE AGREEMENT, UM, FOR THE PROGRAM ADMINISTRATION.SO WE'RE GOING TO HAVE ALEJANDRA LOPEZ COME UP AND GIVE US A PRESENTATION.
ACTUALLY, CHAIR AND COMMITTEE.
I'M, I'M GONNA INTRODUCE MICHAEL SENDEN BECAUSE HE'S GONNA BE PRESENTING THIS ITEM.
GOOD AFTERNOON, CHAIRWOMAN VRAN AND, UH, OTHER COUNCIL MEMBERS OF THE ECONOMIC WORK, UH, ECONOMIC AND WORKFORCE DEVELOPMENT COMMITTEE.
AS ALEX MENTIONED TODAY, I'LL BE PRESENTING AN OVERVIEW ON THE PROPOSED CITY OF SAN ANTONIO.
PROPOSED, UH, PROPERTY ASSESSED CLEAN ENERGY PROGRAM, WHICH I REFER TO AS PACE.
KIND OF MOVING FORWARD IN THE PRESENTATION, I WILL WALK YOU THROUGH THE TEXAS PACE ACT, UH, WHO BENEFITS FROM THE PROGRAM, THE VARIOUS CITY COUNCIL ACTIONS NEEDED TO ESTABLISH A PACE PROGRAM IN THE CITY OF SAN ANTONIO AND CONCLUDE WITH SOME BRIEF PROJECT EXAMPLES.
SO LET'S GET STARTED WITH SOME BACKGROUND INFORMATION.
THE TEXAS LEGISLATURE APPROVED THE PACE ACT IN 2013.
UM, IT ESTABLISHED AN INNOVATIVE FINANCING TOOL THAT ALLOWS OWNERS OF COMMERCIAL, INDUSTRIAL, NON-PROFIT AND MULTIFAMILY RESIDENTIAL PROPERTIES ACCESS TO LOW COST LONG-TERM LOANS TO CONDUCT ENERGY EFFICIENCY AND WATER CONSERVATION IMPROVEMENTS TO REAL PROPERTY.
OWNERS OF THIS COMMERCIAL, INDUSTRIAL, NONPROFIT AND MULTI-FAMILY RESIDENTIAL PROPERTIES CAN ACCESS THIS FINANCING TOOL.
THE TEXAS PACE ACT REQUIRES CITY COUNCIL TO DESIGNATE AN AREA WITHIN ITS LEGAL JURISDICTION WHERE PACE LOANS CAN BE ASSESSED, WHICH IN THIS CASE, UH, WE ARE RECOMMENDING THE SAN ANTONIO CITY LIMITS.
THE TEXAS PACE ACT AND PROPOSED CITY PACE PROGRAM.
WERE DESIGNED TO PROMOTE ECONOMIC DEVELOPMENT AND SUSTAINABILITY EFFORTS AS THE LOANS RESULT IN CONTRACTOR AND ENGINEER ENGAGEMENT TO PERFORM THE CONSTRUCTION AND THE BUILDINGS END UP CONSUMING LESS.
UH, WATER G UH, WATER AND ENERGY PACE ALSO ENCOURAGES PROPERTY OWNERS TO ACTUALLY UNDERGO THESE BUILDING RETROFITS THAT MAY HAVE BEEN PREVIOUS DELAYED AS THE TOOL ACTUALLY REDUCES FINANCIAL BARRIERS.
THE UPFRONT FUNDING OVER A POTENTIAL 20 YEAR REPAYMENT PERIOD ALLOWS PROPERTY OWNERS TO BE COST NEUTRAL AT A MINIMUM FROM YEAR ONE OF THE RETROFIT.
THIS IS DUE TO THE COST FROM THE LOAN NOT BEING GREATER THAN THE SAVINGS FROM THE RETROFIT.
THIS BENEFIT IS WHAT SETS PACE LOANS APART FROM TRADITIONAL LOANS WHERE IMPROVEMENTS MAY NOT RESULT IN A POSITIVE OR NEUTRAL CASH FLOW FOR A NUMBER OF YEARS AS AN EXTRA LEVEL OF PROTECTION FOR THE PROPERTY OWNER.
THE ESTIMATED SAVINGS EXPECTED AS A RESULT OF THE IMPROVEMENTS MUST BE VALIDATED BY A THIRD PARTY REVIEWER, FURTHER ENFORCING THE LIKELIHOOD OF A POSITIVE OR NEUTRAL CASH FLOW FOR THE BUSINESS.
PACE ALSO ENCOURAGES LENDERS TO ASSESS LOANS AS THEY ARE PAID THROUGH AND SECURED BY A PROPERTY ASSESSMENT VOLUNTARILY IMPOSED WITH CONSENT FROM THE EXISTING PROPERTY OWNERS.
THE SENIOR LIEN STATUS OF PACE ASSESSMENTS REDUCES THE RISK OF NONPAYMENT MAKING THIS FORM OF FINANCING ATTRACTING TO LONG-TERM AND RISK ADVERSE LENDERS.
NOTE THAT THE TERM OF THE PACE LOAN MAY ONLY EXTEND THROUGH THE PROJECTED LIFE OF THE IMPROVEMENT.
SO IF AN HVAC SYSTEM WILL ONLY LAST 18 YEARS, AND THAT'S WHAT YOU'RE HAPPEN TO REPLACE YOUR LOAN WOULD BE FOR THOSE 18 YEARS LAST, THE PACE LOAN AUTOMATICALLY TRANSFERS FROM ONE PROPERTY OWNER TO ANOTHER UPON SALE OF THE PROPERTY SHOULD THAT SITUATION OCCUR.
AND THESE SAFEGUARDS AND FINANCING DESIGN MAKE PACE
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PROGRAM PARTICULARLY ATTRACTIVE, AS I MENTIONED, TO RISK ADVERSE LENDERS AND TO BUSINESS OWNERS WHO MIGHT BE DELAYING THESE RETROFITS.NOW LET'S WALK THROUGH THE FLOW OF A PACE PROJECT.
AS YOU SEE ON THIS SCREEN HERE, A PROPERTY OWNER WILL FIRST IDENTIFY A PROJECT.
THEY MIGHT WANT TO DO THE REDO L E D LIGHTS, THEY MIGHT WANT TO UPDATE THE HVAC AS I MENTIONED EARLIER.
THEY IDENTIFY THOSE ENERGY AND WATER SAVINGS PROJECTS THEY WANT TO UNDERGO.
UM, THEY THEN GO OUT THEMSELVES AND THEY WILL IDENTIFY A CONTRACTOR TO PERFORM THE WORK AND THEY WILL CHOOSE A LENDER TO EXECUTE ON THE PROJECT.
THEN THEY WILL MEET UP WITH A, WITH A TEXAS PACE AUTHORIZED PROGRAM.
AND ONCE THEY MEET ALL THE DIFFERENT REQUIREMENTS, THE PROPERTY OWNER WILL SIGN A CONTRACT WITH THE PACE PROGRAM, WHICH PLACES A SENIOR LIEN ON THE PROPERTY.
NEXT, THE LENDER WILL SIGN A CONTRACT WITH THE CITY IN EXCHANGE FOR THE UH, UH, UH, ASSESSMENT PAYMENTS.
AND THE LENDER WILL THEN PROVIDE FUNDING AND THE CONTRACTOR WILL COMPLETE THE PROJECT.
THE PACE PROGRAM WILL BILL ASSESSMENTS TO THE OWNER AND FORWARD THE PAYMENTS TO THE LENDER TO HANDLE THE MAJORITY OF THIS PROCESS.
THE CITY WILL ESTABLISH CRITERIA THAT I WILL DISCUSS IN A FEW SLIDES COMING UP THAT WILL ALLOW THIRD PARTY ADMINISTRATORS TO OVERSEE PACE LOANS.
AS FOR THE CITY, WE HAVE TWO MAIN ROLES IN THIS PROCESS.
NUMBER ONE, IMPLEMENTING THE VOLUNTARY IMPOSED SENIOR LIEN ON THE PROPERTY ONCE ALL THE AGREEMENTS AND THE THIRD PARTY REVIEW HAS BEEN VETTED AND COMPLETED.
AND TWO, AUTHORIZING A PROJECT PRIOR TO CONSTRUCTION OR LOAN APPROVAL TO ENSURE THAT THIRD PARTY ADMINISTRATOR MEETS THOSE CITY AND IMPOSE CRITERIA THAT WE'RE GONNA DISCUSS IN A LITTLE BIT, WHICH FURTHER PROTECTS THE PROPERTY OWNER.
SO LONG STORY SHORT, THIS PROGRAM IS ONE THAT BENEFITS ALL BENEFITS, ALL STAKEHOLDERS INVOLVED WITH PROTECTIONS BUILT IN TO MAKE PROJECTS AS SECURE AS POSSIBLE.
IN ADDITION TO LOWERING BUSINESS OPERATION OPERATING COSTS, IT EMPOWERED THEM EVERY STEP OF THE WAY AND MAKE IN THE DECISION PROCESS.
LENDERS AND CONTRACTORS ALSO SEE ADDED BENEFIT FROM THE INCREASE IN BUSINESS ACTIVITY.
AS A RESULT IN PARTICIPATING IN THE PACE PROGRAM.
PACE ALSO BENEFITS THE GREATER SAN ANTONIO COMMUNITY WITH OVERALL INCREASED ECONOMIC DEVELOPMENT ACTIVITY, IMPROVED BUILDING INFRASTRUCTURE AND IMPROVED AIR QUALITY AND WATER CONSERVATION.
AS I MENTIONED EARLIER, THE HOUSTON ADVANCED RESEARCH CENTER ACTUALLY LOOKED AT 20 PACE PROJECTS, UM, AND FOUND THAT OVER THOSE 20 PROJECTS THAT WERE COMPLETED, IT RESULTED IN 600 JOBS, THE ELIMINATION OF 46,000 TONS OF CARBON DIOXIDE AND 67 MILLION GALLONS OF WATER REDUCED AS A RESULT OF THOSE PACE PROJECTS.
IN ADDITION TO THE SAN ANTONIO BENEFITS, PACE ALSO ALIGNS WITH THE VARIOUS CITY ADOPTED PLANS SUCH AS THE SA TOMORROW SUSTAINABILITY PLAN, WHICH SUPPORTS PACE FINANCING PROGRAM, THE SAN ANTONIO CLIMATE ACTION AND ADAPT ADAPTATION PLAN THAT CALLS TO ANALYZE POSSIBLE FINANCING ENERGY EFFICIENCY MECHANISMS SUCH AS PACE AND THE AMERICAN CITY'S CLIMATE CHALLENGE M O U, WHICH LISTED PACE AS ONE OF EIGHT CHALLENGE STRATEGIES.
SINCE THE PACE ACT WAS PASSED IN 2013 TO 36, LOCAL GOVERNMENTS IN TEXAS HAVE IMPLEMENTED THE PROGRAM IN THEIR COMMUNITIES.
OF THE TWO CURRENTLY KNOWN TEXAS THIRD PARTY ADMINISTRATORS, THE TEXAS PACE AUTHORITY MAKES UP 33 OF THE 36 LOCAL GOVERNMENTS, WHICH ARE DISPLAYED ON THAT DRAFT MAP YOU SEE ON THIS SLIDE AND KIND OF INDICATED IN BLUE LONE STAR PACE HAS THE REMAINING THREE COUNTIES, WHICH ARE DENTON, FREESTONE, AND HARRIS COUNTIES, WHICH ARE NOT SHOWN ON THIS MAP AS ITS TEXAS PACE AUTHORITIES.
BUT NOTE THAT THERE'S 36 TOTAL.
AND NOTE THAT THESE 30, THESE THIRD PARTY ADMINISTRATORS DO OPERATE TOGETHER IN THREE COUNTIES ACROSS TEXAS.
THESE EFFORTS HAVE RESULTED IN 26 PROJECTS BEING COMPLETE, THAT HAS RESULTED IN A TOTAL OF A HUNDRED MILLION DOLLARS IN INVESTMENTS.
AND WITH THE ADDITION OF SAN ANTONIO, WE'LL BE ABLE TO REACH EVEN MORE BUSINESSES AND PROPERTIES THAT ULTIMATELY WILL ADD TO THESE IMPRESSIVE NUMBERS AND FURTHER REINFORCE OUR DECISION TO OUR DEDICATION TO THE SUSTAINABILITY OF OUR ENVIRONMENT AND COMMUNITY.
IN ORDER TO IMPLEMENT A PACE PROGRAM IN SAN ANTONIO CITY COUNCIL HAS TO TAKE A FEW ACTIONS WITH THE INTENTION OF GATHERING PUBLIC INPUT AND INFORMING THE PUBLIC.
ALREADY POSTED ON OUR WEBSITE IS A REPORT THAT OUTLINES PACE AND HOW THE FINANCING TOOL WILL OPERATE.
IT ALSO INCLUDES SEVERAL CONTRACTING TEMPLATES FOR PUBLIC VIEWERSHIP.
ADDITIONALLY, A PHYSICAL COPY OF THIS REPORT IS AVAILABLE UP IN THE ECONOMIC DEVELOPMENT DEPARTMENT, WHICH IS ACROSS THE STREET OVER HERE IN THE CITY TOWER ON THE 19TH FLOOR FOR ANYONE INTERESTED TO VIEW THAT OUTSIDE OF THE WEBSITE ON THURSDAY, DECEMBER 5TH.
SO IN TWO DAYS, CITY COU, WE WILL COME TO YOU RECOMMENDING THAT CITY COUNCIL PASS A RESOLUTION OF INTENT TO ESTABLISH A PACE PROGRAM AND CALL FOR A PUBLIC HEARING TO GATHER FEEDBACK ON THE PROGRAM.
MOVING FORWARD ON DECEMBER 12TH, STAFF INTENDS
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TO TAKE TO YOU ALL AGAIN, UH, AND RECOMMEND THAT THAT CITY COUNCIL ESTABLISH, UH, RESOLUTION TO ESTABLISH A PACE PROGRAM IN THE CITY OF SAN ANTONIO AND ACTUALLY CONDUCT A PUBLIC HEARING AT THAT TIME.WE'LL ALSO REQUEST YOUR CONSIDERATION TO ESTABLISH CRITERIA TO ALLOW THIRD PARTY ADMINISTRATORS TO FACILITATE PACE LOANS.
AS I DESCRIBED EARLIER ON THIS SLIDE, YOU'LL SEE THE RECOMMENDED THIRD PARTY ADMINISTRATOR CRITERIA.
UM, I WAS REC I WAS TALKING ABOUT A FEW SLIDES BACK.
I WANT TO KIND OF PAUSE HERE AT THIS POINT.
THIS IS WHERE THE POWERPOINT DEVIATES A LITTLE BIT FROM THE MEMO THAT WE POSTED FOR THIS AGENDA ITEM.
AS MANY OF Y'ALL WHO'VE READ THAT AGENDA ITEM, REMEMBER, UM, WE WERE PLANNING ON GOING WITH THE TEXAS PACE AUTHORITY AS OUR THIRD PARTY ADMINISTRATOR FOR THE CITY OF SAN ANTONIO PACE PROGRAM.
UM, I HAD, I WAS UNDER THE ASSUMPTION THAT THEY WERE THE ONLY TEXAS PACE ADMINISTRATOR, THIRD PARTY ADMINISTRATOR IN THE STATE OF TEXAS.
AND WE'VE SINCE LEARNED THAT THERE IS ANOTHER ONE OUT THERE AND OTHERS COULD FORM.
SO WE THOUGHT BETTER TO CREATE SOME COMPETITION THROUGH THE PROGRAM.
OPEN IT UP BY ESTABLISHING A SET OF CRITERIA THAT IF MET OTHER THIRD PARTY ADMINISTRATORS COULD ENTER INTO THE PROGRAM AND ASSESS, UM, PACE LOANS HERE IN THE CITY OF SAN ANTONIO.
SO I WANTED TO MAKE THAT CLEAR.
SO THE CRITERIA THAT WILL ALLOW THIRD PARTY ADMINISTRATORS TO FACILITATE PACE LOANS OR WHAT YOU SEE ON THIS SLIDE, SUCH AS THESE, SOME OF THESE THINGS ARE LIKE ADHERING TO THE ACTUAL STATE STATUTE, THE TEXAS PACE ACT, UH, MAKING SURE THERE ARE NO CONFLICTS OF INTEREST, UH, BETWEEN A THIRD PARTY ADMINISTRATOR, UH, LENDERS, CONTRACTORS OR INTO PARTY INDEPENDENT THIRD PARTY ASSESSMENTS.
UH, MAKING SURE ALL ENTITIES ARE ENGAGED IN THE PACE LOANS ARE ACTUALLY IN GOOD STANDING, THAT THE FEES THAT THEY WILL CHARGE THE FOLKS GETTING THE LOANS ARE LISTED PUBLICLY ON THEIR WEBSITE AND THEY'RE NOT, THEY'RE EASY TO ACCESS.
THEY'RE NOT DUG DEEP ON THEIR WEBSITE THAT THERE WILL BE NO COST OR LIABILITIES INCURRED BY THE CITY PROPERTY OWNER AND DEMOGRAPHIC INFORMATION WILL BE SHARED WITH THE CITY FOR THOSE WHO ARE TRYING TO ASSESS PACE LOANS AND ALSO COMPLETING THEM.
AND WE ALSO WANT TO KNOW WHO IS ATTENDING THEIR WORKSHOPS OR REGISTERING FOR THINGS LIKE THEIR NEWSLETTERS SO WE CAN IDENTIFY GAPS FROM THOSE WHO MAY BE INTERESTED IN PACE LOANS VERSUS THOSE WHO ACTUALLY GO THROUGH THE PROCESS AND COMPETE PACE LOANS.
AND A GOOD EXAMPLE OF THAT, IF WE FIND THAT WOMEN ARE, ARE ENROLLED IN THE NEWSLETTERS AND ATTENDING THE WORK, UM, SHOPS AT 40%, HOWEVER THE COMPLETED LOANS ARE 10%, IS THERE A GAP THERE IN SOME WAY? WE CAN WORK TO ADDRESS THAT SO THAT THOSE NUMBERS KIND OF MATCH THE INTEREST AND THE CLOSING RATE.
WE ALSO WANT THESE ENTITIES WHO DO PACE LOANS IN THE CITY OF SAN ANTONIO TO SUBMIT AN ANNUAL REPORT TO US, BASICALLY LISTING WHERE THEY COMPLETED A PACE LOAN, THE PROPERTY, SOME OF THAT INFORMATION WE TALKED ABOUT EARLIER, SUCH AS THE DEMOGRAPHIC INFORMATION SO THAT WE CAN TAKE BACK AND INTERPRET.
UH, AND THEN WE ALSO WANT THE THIRD PARTY ADMINISTRATOR TO COME TO THE ECONOMIC DEVELOPMENT DEPARTMENT TO OBTAIN AUTHORITY BEFORE THE CITY PACE LOAN IS COMPLETED SO THAT WE CAN VALIDATE AND HAVE THEM ATTEST THAT THEY IN FACT MEET THIS CRITERIA YOU SEE LISTED ON THIS SLIDE.
SO CITY STAFF WILL ALSO BE WORKING JOINTLY, UM, WITH THE THIRD PARTY ADMINISTRATORS TO SPREAD AWARENESS IN OUR COMMUNITY ABOUT THE PACE PROGRAM.
UH, IN ADDITION TO PROVIDING FACILITIES FOR THEM TO HOST WORKSHOPS SUCH AS OUR LIBRARIES AND, AND LAUNCHES SAY AND WHATNOT.
UH, WE WILL ALSO BE INCORPORATING MATERIAL RELATED TO PACE INTO OUR EXISTING EXTENSION OUTREACH EFFORTS SUCH AS OUR INCENTIVE GUIDES.
WHEN WE MEET WITH COMPANIES WANTING TO COME INTO SAN ANTONIO, MAYBE THEY WANT TO GO INTO A BUILDING THAT NEEDS RENOVATIONS.
HOW ARE THEY AWARE OF THIS PACE PROGRAM SO THEY CAN TAKE ADVANTAGE OF IT? AND ALSO MAKING SURE WE'RE ENGAGING WITH MINORITY WOMEN VETERAN AND NONPROFITS SO THAT THEY ARE AWARE OF THIS PROGRAM AS PROPERTY OWNERS.
BUT SECOND, MAKING SURE MINORITY WOMEN VETERANS ARE AWARE FROM A CONTRACTING PERSPECTIVE AS WELL.
'CAUSE THEY MAY BE THE ONES NOT GETTING THE LOAN PER SE, BUT PERFORMING THE RETROFITS.
SO WE RECOGNIZE THAT SPREADING AWARENESS ABOUT THIS PROGRAM IS GONNA BE ONE OF OUR FIRST AND GREATEST BARRIERS.
IT IS A CHALLENGE TO MAKE SURE FOLKS ARE FIRMLY AWARE.
AND SO WE NEED TO GET OUT THERE AND MAKE SURE WE ARE ENGAGING WITH OUR COMMUNITY PARTNERS SO THAT THEY CAN PASS DOWN THAT INFORMATION TO THEIR MEMBERSHIPS.
NOW, BEFORE WE OPEN UP FOR QUESTIONS, I WOULD LIKE TO WALK YOU THROUGH A COUPLE OF EXAMPLES OF PACE PROJECTS.
I BROUGHT TWO WITH ME THAT I'LL, I'LL GO THROUGH PRETTY QUICKLY.
UM, THE FIRST ONE IS THE BAR FIELD BUILDING, WHICH HAS BEEN A HISTORIC CENTERPIECE OF THE CITY OF AMARILLO, UM, WITH SUPPORTIVE PACE FINANCING.
AS YOU SEE HERE, THEY CONDUCTED L E D LIGHTING IMPROVEMENTS, UM, WATER EFFICIENCY, DOMESTIC HOT WATER HEATING AND NET THEM A SAVINGS OF 73% FROM ENERGY ELECTRIC, 79% FROM NATURAL GAS AND 40% WATER SAVINGS AS A RESULT OF A PACE LOAN.
AND IT'S NOT JUST FOR LARGE BUSINESSES, AS I MENTIONED EARLIER, IT'S ALSO FOR SMALL BUSINESSES.
YOU SEE HERE, A DALLAS PAINT AND BODY SHOP.
THEY DECIDED TO TAKE ON L E D LIGHTING IMPROVEMENTS
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AND SOLAR AND IT SAW THEM A, AN ELECTRIC BILL SAVING OF 92%.SO BOTH TYPES OF BUSINESSES WERE ABLE TO TAKE ADVANTAGE OF THESE PACE LOANS.
SO IN SHORT, THANK YOU FOR YOUR ATTENTION ON THIS.
UH, IT'S A PRETTY EXCITING PROGRAM.
I'LL NOW ANSWER ANY QUESTIONS YOU MAY HAVE REGARDING THE PACE PROGRAM.
I ALSO HAVE THE OFFICE OF SUSTAINABILITY HERE WITH ME IF YOU WANNA TALK ABOUT ALIGNMENT WITH THOSE POLICIES.
AND I HAVE CHARLENE FROM THE TEXAS PACE AUTHORITY IF YOU WANNA KNOW ANY QUESTIONS ABOUT THE PACE PROGRAM.
A LITTLE MORE THOROUGH FROM THE TEXAS PACE ACT ITSELF.
UH, APPRECIATE THE PRESENTATION.
I THINK THIS WAS JUST SOMETHING THAT MANY OF US ARE JUST GETTING USED TO AND, AND TRYING TO UNDERSTAND WHAT THIS PACE PROGRAM IS.
AND YES, I THINK IT DOES ALIGN WITH A LOT OF THE THE THINGS THAT WE WANT TO DO HERE IN THE CITY OF SAN ANTONIO.
I DO HAVE A COUPLE OF QUESTIONS FOR SLIDE NUMBER FIVE, PACE BENEFITS, EVERYONE INVOLVED.
YOU HAVE THE BUILDING OWNERS, CONTRACTORS, LENDERS, CITY OF SAN ANTONIO AND STATE.
SO TELL ME WHAT IS THE BENEFIT, UM, THAT THE THIRD PARTY ADMINISTRATORS ARE GETTING? SO THE BENEFIT OF THE THIRD PARTY ADMINISTRATORS, THEY GET OUT OF THAT 'CAUSE THEY'RE FACILITATING THE LOANS, RAISING AWARENESS, WALKING PEOPLE THROUGH THE PROCESS TO MAKING SURE THEY'RE, UH, PACE ACT MM-HMM.
SO HOW MUCH ARE THEIR FEES? SO IT VARIES FROM, UM, DO WE GET TO SET THAT WITH PART OF THE CRITERIA OR DO THEY AUTOMATICALLY SET IT? I HAVE TO DEFAULT TO CHARLENE FOR THIS ONE.
IT'S, I'M JUST TRYING TO UNDERSTAND HOW THE SYSTEM WORKS.
MY NAME IS CHARLENE HEIDINGER.
I'M THE PRESIDENT OF THE TEXAS PACE AUTHORITY.
SO TO ANSWER YOUR FIRST QUESTION, WHAT SHOULD THE ADMINISTRATOR GET OUT OF THIS PROGRAM? THE ANSWER IS NOTHING BUT PUBLIC SERVICE.
WE WERE CREATED ONLY AFTER IT BECAME VERY CLEAR THAT CITIES AND COUNTIES WERE UNLIKELY TO BE ABLE TO DO THIS IN-HOUSE.
UH, WE WROTE A MODEL PROGRAM TO HAVE A UNIFORM, UH, PROGRAM ACROSS THE STATE OF BEST PRACTICES CALLED PACE IN THE BOX.
UH, AND, AND THAT'S WHAT 33 OF THESE 36 GOVERNMENTS ARE DOING.
THE IDEA WAS THAT IF SOMEONE, IF IT, IF IT COULDN'T BE THE CITY AND THE COUNTY, IT SHOULD BE THE COG.
AND IF THE COGS WEREN'T WILLING TO DO IT BACK IN 2014 WHEN WE WERE GETTING STARTED, THE ONLY OTHER WAY TO DO IT WAS TO CREATE A NONPROFIT WHO WOULD ACT AS AN EXTENSION OF THE CITY.
AND THE MODEL FOR OUR BUSINESS PLAN WAS THE LOWEST POSSIBLE, THE LOWEST POSSIBLE RATES, WHICH WE CAN ONLY DO AT HIGH VOLUME.
AND IN THE MEANTIME, WE'VE BEEN FUNDED BY THE MEADOWS FOUNDATION, THE ROCKEFELLER BROTHERS FUND, AND THE ENVIRONMENTAL DEFENSE FUND.
WE'VE JUST LOWERED OUR RATES FOR THE SECOND TIME.
THEY ARE AMONG THE LOWEST IN THE COUNTRY, SIGNIFICANTLY LOWER THAN UH, UH, SEVERAL OTHER STATES.
AND WE'RE, WE'RE PROUD OF THAT.
UM, OUR GOAL AS A NONPROFIT IS OBVIOUSLY WE HAVE TO BECOME SUSTAINABLE BASED ON VOLUME.
UM, BUT WE, WE HAVE COMMITTED TO EVERYONE AND WE WILL CONTINUE TO MAKE THIS COMMITMENT.
WE WILL CONTINUE TO LOWER OUR RATES AS VOLUME IS INCREASES.
AND SO HOW MUCH ARE YOUR RATES RIGHT NOW? SO, UH, IT'S 1% OF THE PROJECT AT CLOSING.
UH, FOR THE FIRST 5 MILLION, UH, WE JUST, UH, THEN FOR ABOVE 5 MILLION TO 20 MILLION, WE DROPPED THAT TO HALF A PERCENT ABOVE 20 MILLION.
UM, THE FLOOR WAS 2,500 SO THAT WE COULD AT LEAST COVER OUR COSTS FOR SMALL BUSINESS AND, UH, UNDERSERVED COMMUNITY PROJECTS.
WE JUST LOWERED THAT TO 2000 AND, UM, THAT WILL ENABLE US TO BREAK.
IT DOESN'T DO ANYTHING FOR OVERHEAD, BUT IT WILL ENABLE US TO BREAK EVEN ON THOSE SPECIFIC PROJECT CLOSINGS.
IN ADDITION, WE WERE CHARGING 10 BASIS POINTS ON THE REMAINDER OF THE LOAN THROUGH THE LOAN TO MAKE SURE THAT IF THERE WAS A BAD YEAR, WE WOULD HAVE ENOUGH, UH, REVENUE TO MEET OUR REQUIREMENTS.
AND WE JUST DROPPED THAT TO EIGHT BASIS POINTS AND WE'LL CONTINUE TO KEEP DROPPING IT AS WE BECOME MORE ABLE.
THE PROGRAM, THE FIRST PROJECT WAS CREATED IN TRAVIS COUNTY IN 2015.
UH, TEXAS PACE AUTHORITY WAS CREATED IN 2015.
UM, THE FIRST PROJECT'S CLOSED IN 2016.
AND THIS HAS BEEN OUR FIRST REALLY SOLID YEAR.
WE'VE CLOSED, UM, LAST MONTH WE CROSSED THE $100 MILLION MARK.
UH, AND, UM, HALF OF THAT HAS BEEN THIS YEAR.
SO YOUR ATTENTION NOW, UH, IS REALLY WELL TIMED BECAUSE THE PROGRAM IS BEGINNING TO PROVE ITSELF.
THE MODEL WE DESIGNED THIS PUBLIC SERVANT HIGH
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BAR OF CONSUMER PROTECTION BEST PRACTICES.IT'S, IT'S HARD, BUT IT'S MEANT TO PROTECT YOUR CONSTITUENTS AND THE CITY.
AND WE'RE GRATEFUL FOR YOUR ATTENTION TODAY.
ONE LAST QUESTION, SHIRLEY, AND THANK YOU SO MUCH FOR BEING HERE AS WELL.
THE, THE, ARE ANY OF THESE EXAMPLES THAT MICHAEL SHARED WERE ANY OF THESE, UM, PROJECTS THAT YOU ALL WORKED ON AS THIRD PARTY? ALL OF THE PROJECTS THAT HAVE CLOSED IN TEXAS HAVE BEEN TEXAS PACE AUTHORITY PROJECTS.
UM, AND THANK YOU FOR THAT CLARIFICATION.
'CAUSE ONE OF MY QUESTIONS, MICHAEL, THANK YOU, WAS ABOUT, UM, IS THERE A STANDARD CRITERIA AND YOU'RE SAYING IT'S PACE IN A BOX? OR IS THERE SOMETHING LIKE THAT? PACE IN A BOX.
HAS BOTH, UM, UNDERWRITING CRITERIA, MINIMUMS THE LENDERS, WE DON'T PROVIDE THE FUNDING.
AND OUR ONLY CLIENT IS YOU, UH, IS THE CITY.
UM, THE UNDERLYING UNDERWRITING CRITERIA ARE PRETTY TOUGH.
UH, WE WILL NOT ACCEPT A PROJECT UNLESS THE SAVINGS EXCEED THE COST OVER THE LIFE OF THE ASSESSMENT.
SO THE ENGINEERING STANDARDS THAT ARE REQUIRED ARE VERY SIMILAR TO THE STATE'S STANDARDS FOR A PROGRAM THEY HAVE CALLED, UM, LONE STAR PLAN WORDS, L O A N SS T A R.
IT'S A 20 YEAR OLD PROGRAM OUT OF THE COMPTROLLER'S OFFICE.
AND SO, UM, THAT PROGRAM HAS BEEN VERY SUCCESSFUL.
THE STANDARDS ARE TOUGH IN BOTH WAYS, UM, BECAUSE WE DON'T EVER WANNA HAVE TO COME BACK TO YOU, UH, WITH A FAILURE.
SO WE DO EVERYTHING HUMANLY POSSIBLE UPFRONT.
WE CAN'T MAKE A COMPANY SAVE THE MONEY.
THEY'RE SAVING TO PAY THEIR ASSESSMENT INSTALLMENTS.
UM, BUT EVERYTHING UPFRONT IS SET FOR SUCCESS.
UM, MICHAEL, THESE, UH, THESE PROJECTS, AND I KNOW IT WAS WHAT SLIDE NUMBER TWO, UH, INDUSTRIAL, NONPROFIT, COMMERCIAL MULTIFAMILY.
ARE THESE BASED ON, UH, SPECIFIC ZONING OR IS IT JUST THE, THE CERTIFICATES OF, UM, THE, THE CERTIFICATE THAT THEY HAVE? CERTIFICATE OF O OCCUPANCY? YEAH.
SO I THINK I KNOW THE ANSWER TO THIS QUESTION AND CHARLENE MIGHT BE ABLE TO CLARIFY, BUT IF IT'S AN EXISTING PROPERTY THAT'S GONNA BE USED FOR THE SAME PURPOSE, THEY WOULD JUST MODEL OUT BASICALLY THE ENERGY COST THAT THEY HAVE RIGHT NOW.
AND THEN THAT ENGINEER WOULD COME IN AND TELL YOU WHAT YOUR SAVINGS WOULD BE AS A RESULT OF THE RETROFITS.
AND YOU'RE GOOD TO GO, AS LONG AS I SAID YOU'RE CASH NEUTRAL, CASH POSITIVE.
IF YOU'RE ACTUALLY GONNA TAKE A BUILDING AND REPURPOSE IT FOR SOMETHING ELSE, LET'S SAY IT'S GOING FROM BUSINESS TO RESIDENTIAL OR MAYBE THE OTHER WAY AROUND, THEY HAVE TO DO SOME MODELING TO SHOW HOW THOSE, HOW THOSE, HOW THOSE ENERGY SAVINGS WOULD BE IMPACTED BY RETROFITTING THE BUILDING FOR A DIFFERENT USE IN ORDER TO JUSTIFY THE LOAN.
AND THAT'S SOMETHING THAT CHARLENE OVERSEES AS WELL TO MAKE SURE THAT THEY ARE CALCULATING IT VERY CORRECTLY.
UM, I HAVE A COUPLE MORE QUESTIONS, BUT I'M GOING TO YIELD THE FLOOR FOR MY COUNCIL COLLEAGUES.
CHAIR VON, I HAVE A, A FEW QUESTIONS.
FIRST, WHAT DOES THE IMPLEMENTATION SCHEDULE LOOK LIKE? HOW, HOW QUICKLY DOES THIS GET ROLLED OUT? SO I BELIEVE, LET'S SEE WHAT SLIDE IT IS ON.
SLIDE EIGHT STARTS WITH THE FIRST ACTION, WHICH WE'RE BRINGING TO YOU IN TWO DAYS.
AT THAT POINT, YOU'RE BASICALLY GOING TO PASS A RESOLUTION OF INTENT TO ESTABLISH A PROGRAM IN SAN ANTONIO.
AND WE'RE GONNA CALL FOR A PUBLIC HEARING THE FOLLOWING WEEK, SO FOLKS CAN COME FORWARD AND EXPRESS FEEDBACK ON THE PROGRAM.
MOVING TO SLIDE NINE, WHICH IS THE VERY NEXT WEEK ON THURSDAY, WE'RE GONNA COME BACK AND THAT'S WHEN WE'RE GONNA ASK FOR A RESOLUTION TO ESTABLISH A PACE PROGRAM IN THE CITY OF SAN ANTONIO AND SET THAT CRITERIA FOR THE THIRD PARTY ADMINISTRATORS.
ONCE YOU ALL DO THAT, IT'S JUST A MATTER OF HOW QUICKLY CAN THE PROPERTY OWNERS ACTUALLY GO OUT, FIND THE CONTRACTORS, SECURE THE LENDERS, AND BUTTON UP THE PAPERWORK ON THEIR END TO ACTUALLY START THE RETROFITS.
SO IT CAN START THE FOLLOWING WEEK.
UM, AND I SEE YOU HAVE HERE ON SLIDE EIGHT THAT THE REPORT IS CURRENTLY AVAILABLE.
SO EVERYBODY KNOWS WHERE TO OBTAIN IT.
IT'S EITHER A, ON THE CITY OF ECONOMIC DEVELOPMENT WEBSITE, OR YOU CAN ACTUALLY COME UP TO OUR OFFICES ON THE 19TH FLOOR AND VIEW A HARD COPY, IF THAT'S YOUR PREFERENCE.
DOES THE REPORT INCLUDE SUGGESTED METRICS? HOW WE'RE EVALUATING IF THIS IS HOW IT'S GOING? FROM MY REC RECOLLECTION OF THE REPORT, IT DOESN'T HAVE METRICS IN THERE.
UM, BUT THAT'S WHY WE WANTED TO GA GATHER THE DATA OF THE PROPERTY OWNERS COMING TO THE TABLE.
'CAUSE I, IT'S HARD FOR US TO, PER SE, FORCE LOANS TO OCCUR, BUT WE CAN AT LEAST SEE WHO'S GETTING THEM AND WHO'S NOT,
[00:25:01]
AND TRY TO FILL THOSE GAPS DOWN THE ROAD ONCE WE GATHER THAT DATA.UM, I'M, I THINK, I GUESS I'M THINKING MORE ABOUT MARKETING MM-HMM.
SO IN OUR AGREEMENTS WITH THEM, WE WILL DEFINITELY HAVE, UH, CRITERIA IN THERE FOR THEM TO MARKET JOINTLY WITH US.
'CAUSE WE HAVE A LOT OF GOOD MECHANISMS IN HOUSE TO DO THAT AS WELL, WHERE WE CAN PUSH THIS INFORMATION OUT, WHETHER IT'S SOMEONE COMING THROUGH THE ECONOMIC DEVELOPMENT FOUNDATION.
UM, TO LOCATE OR EXPAND HERE IN SAN ANTONIO, OR IT'S THROUGH OUR SMALL BUSINESS SIDE WHEN WE HAVE NEWSLETTERS AND EVENTS AND VENDOR ORIENTATIONS OUT IN THE PUBLIC WHERE WE CAN ENGAGE ON THIS PROGRAM WITH THEM THERE.
AND THAT'S HOW WE'RE EDUCATING LOCAL BUSINESS OWNERS, PROPERTY OWNERS.
UM, WHAT WILL THE OUTREACH TO, SPECIFICALLY TO LOCAL MINORITY WOMEN VETERAN OWNED BUSINESSES LOOK LIKE? SURE.
SO RIGHT NOW, UM, ON THE SMALL BUSINESS SIDE OF ECONOMIC DEVELOPMENT, WE HAVE ROUGHLY FIVE PROGRAMS THAT WE'RE ALWAYS TRYING TO PUSH OUT TO EDUCATE AND LET PEOPLE KNOW THEY'RE AVAILABLE AND TO TAKE ADVANTAGE OF THEM.
THIS IS GONNA BE ANOTHER CHANNEL, ANOTHER MECHANISM TO HIT THOSE CHANNELS.
SO THROUGH NEWSLETTERS, SOCIAL MEDIA, WE HAVE FOLKS REGISTERED IN OUR CENTRAL VENDOR REGISTRY THAT WE CAN ACTUALLY BLAST DIRECT CONTENT TO.
ONE OF THEM COULD BE THIS PACE PROGRAM.
WE HAVE VENDOR ORIENTATIONS OUT IN THE COMMUNITY IN DIFFERENT CITY COUNCIL DISTRICTS WHERE WE CAN ACTUALLY BRING CHARLENE IN, HOST A WORKSHOP, AT THE VERY LEAST, HAVE A BOOTH OF MARKETING INFORMATION THAT WE CAN PASS OUT AND DISTRIBUTE AND HIGHLIGHT.
THOSE ARE JUST A FEW OF THE MECHANISMS THAT WE DO NOW FOR OUR SMALL BUSINESS PROGRAMS THAT WE WOULD THEN ALIGN THIS PROGRAM WITH THOSE EFFORTS.
SO YOU'D BE WILLING, IF WE HAD SOME EVENT IN OUR OWN DISTRICTS, YOU'D BE WILLING TO COME, LIKE YOU SAID, FOR SURE.
AND THEN WE COULD HAVE SOME GRAPHICS TO SHARE ON OUR OWN, UM, SOCIAL MEDIA AND FOR SURE.
THIS SOUNDS VERY PROMISING, BUT LET ME JUST MAKE SURE I UNDERSTAND.
SO, WHO, WHO IS THE FUNDER THAT, SO, UH, WHO, WHO IS PROPERTY ASSESSED CLEAN ENERGY, TEXAS PACE ACT? SO WHO, SO THE TEXAS PACE ACT IS JUST, IS THE STATE STATUTE THAT ENABLED THE PROGRAM.
AND THE FUNDERS AT THE END OF THE DAY ARE GONNA BE THE LENDERS THEMSELVES.
SO PRIVATE BANKS COULD BE BANKS, COULD BE THOSE COMMUNITY DEVELOPMENT FINANCING INSTITUTIONS LIKE LIFT FUND.
UM, I THINK THAT THERE'S, I DID YOU WANNA COME UP CHARLOTTE, RIGHT? CHARLENE? CHARLENE, YEAH.
THE FULL GAMUT OF LENDERS HERE.
NO, UH, ANYBODY THAT LOANS ON GA ON BUSINESSES.
UM, THE BANKS ARE OBLIGATED TO MAKE CERTAIN INVESTMENTS IN CERTAIN AREAS THAT ARE, UH, ECONOMICALLY DEPRESSED.
UH, COMMUNITY REINVESTMENT ACT.
SO THIS WOULD QUALIFY FOR THOSE.
SO THERE'S A VARIETY OF, AND, AND CHARLIE CAN ASK AND OTHERS, MOST, MOST OF THE, UH, NATIONAL LENDERS WHO ARE DOING THIS ARE ACTUALLY EQUITY PROVIDERS.
THEY'RE, UM, GETTING THEIR MONEY FROM LIFE INSURANCE COMPANIES AND PENSION FUNDS.
CAN YOU GIVE AN EXAMPLE OF A COMPANY PETROS PACE FINANCING? UH, IN AUSTIN, UH, IS ONE HERE IN TEXAS, GREENWORKS LENDING IS OUT OF CONNECTICUT.
UH, CLEAN FUND IS, UH, OUTTA CALIFORNIA.
THE PROPERTY OWNER PAY IN A BOX WAS DESIGNED FOR THE PROPERTY OWNER TO HAVE ALL THE POWER THEY CAN USE WHATEVER LENDER THEY WANT.
UM, WE MAKE SURE THEY CAN DO BUSINESS IN TEXAS AND SOME VERY FUNDAMENTAL THINGS, BUT LENDERS WHO MEET OUR FUNDAMENTAL CRITERIA ARE WELCOME ON OUR WEBSITE BECAUSE THE STATUTE SAYS, HOW ARE WE GONNA HELP PEOPLE FIND THIS PRIVATE CAPITAL? SO WE DO THAT, BUT THAT'S NOT AN EXCLUSIVE LIST.
THERE ARE THREE BANKS ON THAT LIST.
WE'RE VERY EXCITED ABOUT THAT.
WE, WE WANT LOCAL LENDERS TO BE A PART OF THIS.
THIS IS SUPPOSED TO CREATE ECONOMY THROUGHOUT THE CITY OF SAN ANTONIO, UM, FOR YOUR CONTRACTORS, YOUR ARCHITECTURE ENGINEERS, NOT JUST THE PROPERTY OWNERS, BUT ALSO THE LOCAL LENDERS.
ANOTHER REASON WE NEED TO, TO HAVE THE LOCAL LENDERS PARTICIPATE AND BENEFIT IN THIS IS THE STATUTE SAYS THAT IF THERE'S A MORTGAGE ON THE PROPERTY, YOU MUST GET THE WRITTEN PERMISSION OF THE MORTGAGE LENDER IN ORDER TO QUALIFY FOR THIS PROGRAM.
SO WOULD IT BE SIMILAR TO LIKE AN SS B A LOAN? IT COULD BE.
WELL, YES, THERE ARE ADDITIONAL CRITERIA.
YOU DON'T HAVE TO GO TO A LOCAL BANK.
WE ARE, WE NEED THE LOCAL BANKS TO PARTICIPATE BECAUSE A LOT OF THE EQUITY LENDERS WHO ARE REALLY WORKING IN THIS AREA AND MAY HAVE COME TO YOU TO TELL YOU ABOUT THE PROJECTS THAT THEY HOPE TO, TO, UM, USE IF YOU CREATE THE PROGRAM, ARE NOT FOCUSED ON THE SMALLER PROJECTS.
SO WE WILL CONTINUE OUR OUTREACH EFFORT WITH, UH, LOCAL LENDERS AND, UH, UH, AS MUCH AS WE CAN.
SO, UH, YOU, YOU MENTIONED, UH, HUNDRED MILLION IN LEND LOANS SO FAR.
WAS THERE A MENTION OF WHAT IS THE
[00:30:01]
AVERAGE LOAN? THAT'S A GREAT QUESTION.UM, AND I HAVE NOT SAT DOWN TO FIGURE OUT WHAT THE MEAN IS.
THE LARGEST PROJECT IS 24 MILLION AND THE SMALLEST IS 74,000.
PROBABLY MOST OF THEM ARE PROBABLY AROUND 5 MILLION.
UM, AND SO IS THERE A REQUIREMENT FOR THE PRIVATE BANKS TO PARTICIPATE? ABSOLUTELY NOT.
UM, NOBODY HAS TO, THE WORST THING THAT HAPPENS IS IF NO ONE USES THE PROGRAM.
SO I GUESS WHAT I'M ASKING, SO CARLOS, YOU MENTIONED ABOUT THE, UM, THE C R A.
SO WE KNOW THAT OUR BANKS HAVE TO PARTICIPATE IN LENDING IN THE COMMUNITIES THAT THEY SERVE.
SO I, I GUESS THAT'S WHY I'M ASKING ABOUT.
SO THEY DO HAVE OBLIGATIONS TO DO THAT, AND THEY HAVE TO SATISFY THAT TO THE REGULATORS, THAT THIS IS ONE MEANS BY WHICH THEY CAN DO THAT.
THE CHALLENGES FOR LOCAL BANKS, AND THE REASON THAT PAYSON, ONE OF THE MANY REASONS THAT PAY IN A BOX IS SO IMPORTANT IN THE IDEA OF DOING THIS UNIFORMLY THROUGHOUT THE ENTIRE STATE, IS TO HAVE THE SAME STANDARDS APPLIED THE SAME WAY.
BUT WE NEED TO CREATE A LARGE SECONDARY MARKET OF EVERYTHING BEING THE SAME.
BECAUSE THERE ARE A COUPLE CHALLENGES FOR LOCAL BANKS TO JUMP IN.
ONE IS, UH, AFTER THE MORTGAGE CRISIS, THEY HAVE SOME PRETTY HIGH REQUIREMENTS FOR CASH ON HAND.
THEIR CAPITAL REQUIREMENTS PACE IS COMMITTING THEIR MONEY FOR A VERY LONG TIME, 10, 15, 20 YEARS.
THE SECOND THING IS, THIS IS A LONG-TERM FIXED RATE LOAN, AND THAT'S VERY UNUSUAL FOR BANKS.
THEY'LL MAKE 30 YEAR MORTGAGES ALL THE TIME, BUT THEY IMMEDIATELY SELL THEM TO SOMEONE ELSE.
AND SO UNTIL THAT MECHANISM GETS GOING WITH UNIFORMITY AND LOTS OF VOLUME OF PROJECTS, AS SOON AS THEY KNOW SOMEONE WILL BUY THESE UP, THIS WILL BE A VERY EASY MARKET.
IT'S A GREAT NEW PRODUCT FOR THEM, BUT THEY HAVE LEGITIMATE, UM, KIND OF ENTRY, UH, CHALLENGES THAT THEY HAVE TO WORK OUT.
I, I GUESS THAT'S WHY I'M GET, UM, CONCERNED THAT PEOPLE THAT COULD REALLY BENEFIT FROM IT WON'T HAVE THE OPPORTUNITY BECAUSE OF, OF THE THINGS THAT KEEP PEOPLE OUT OF BANKS FOR LOANS AT ALL LEVELS.
WELL, YOU'VE GOT SOME GREAT ORGANIZATIONS HERE, LIFT FUND, UM, PEOPLE, THERE'S THERE, THEY'RE, WE ARE COMMITTED TO DO THIS.
ANOTHER CHALLENGE IS FOR LOW INCOME HOUSING.
HUD HAS SOME PRETTY TOUGH CRITERIA, BUT, BUT THEY WILL GR THEY, IF YOU MEET THEIR CRITERIA, YOU CAN GET CONSENT FROM THEM.
AND SO WE'VE SPENT A LOT OF TIME ON, UM, MAKING SURE THAT, UH, WE CAN USE THIS FOR, UM, FOR LOW INCOME HOUSING.
WE'RE, WE'RE COMMITTED TO DOING THIS, BUT IT'S NOT GONNA BE EASY.
AND SO I GUESS THAT WAS, YOU KNOW, A FOLLOW UP QUESTION.
HAVE YOU DONE ANY HUD ASSISTED PROJECTS? NO.
I'M STILL TRYING TO GET SOMEBODY TO, WE DID GET AN ATTORNEY.
ONE OF THEIR CRITERIA IS THAT THERE'S A STATE ATTORNEY GENERAL OPINION THAT PAYS, IS AN ASSESSMENT, A GOVERNMENT ASSESSMENT ON PROPERTY, AND NOT JUST ANOTHER LOAN, BECAUSE THEY CAN LEGALLY CONSENT TO A SENIOR LIEN ON PROPERTY BY THE GOVERNMENT, BUT THEY CAN'T, UH, CONSENT TO ANOTHER SENIOR LIEN FROM ANOTHER COMPANY.
SO WE, WE'VE, WE'VE GOT EVERYTHING MARKED OUT IN TODAY.
SO THAT'S WHERE, UM, I, I WAS GOING WITH THAT.
SO I, 'CAUSE I, I JUST GIVE TWO EXAMPLES AND THEN YOU CAN TELL ME WHETHER OR NOT THESE PROJECTS WOULD BE ELIGIBLE.
UH, AND I DON'T KNOW IF IT, IT MAY BECAUSE IT'S A VERY LOCAL ISSUE.
UH, MAYBE ONE OF OUR LOCALS WILL HAVE TO ANSWER THE QUESTION.
BUT SOME YEARS AGO, UH, A UH, BODY SHOP APPROACHED ME.
THEY'VE GOTTEN A COMPLAINT IN THE NEIGHBORHOOD FROM ABOUT NOISE.
UH, THEY WERE A BODY SHOP AND YOU KNOW, THEY HAD BEEN IN THAT LOCATION FOR 20 PLUS YEARS OR MAYBE MORE.
UM, BUT WHEN OUR CITY INSPECTOR CAME IN TO OUR CODE INSPECTOR CAME IN TO CITE THEM OR TO ENFORCE THE NOISE ORDINANCE, UM, THEY NOTICED THAT THEY WERE OUT OF COMPLIANCE WITH THE AUTOBODY WORK THAT THEY WERE DOING, THAT THEY DIDN'T, THEY WERE NOT MEETING T C E Q STANDARDS.
UM, AND THAT THEIR, THEIR BUILDING WAS NOT IN COMPLIANCE FOR THE WORK THAT THEY WERE DOING.
SO THE COST TO UPGRADE TO THIS NEW STANDARD WAS SOMETHING IN THE RANGE OF $50,000.
UH, AND IT WAS VERY DIFFICULT.
THEY HAD BEEN DOING BUSINESS THAT WAY FOR MANY, MANY YEARS.
OBVIOUSLY THE STANDARDS HAD CHANGED AND THEY DID NOT, THEY WERE NOT AWARE OF IT.
UM, AND SO THEY HAD TO COME UP WITH THE MONEY TO RETROFIT THEIR BUILDING, AND THEY DID.
WOULD THEY BE ELIGIBLE FOR A LOAN LIKE THIS SINCE IT WAS AN ISSUE OF
[00:35:01]
AN, IT WAS AN ENVIRONMENTAL CONCERN THAT WAS FORCING THEM TO DO THAT UPGRADE? THAT'S A WONDERFUL QUESTION.THE TEXAS PACE ACT IS SPECIFICALLY LIMITED TO MEASURES THAT ARE PERMANENTLY AFFIXED.
THEY HAVE TO BE THERE TO, TO PROVIDE THE SAVINGS THROUGH THE LIFE OF THE ASSESSMENT.
BUT THEY CAN ONLY BE THOSE MEASURES THAT RESULT IN WATER SAVINGS, ENERGY SAVINGS, OR CREATE POWER ON SITE.
SO SOME OF IT, MAYBE A LOT OF THE, UM, UH, EMISSIONS, UH, PROTECTIONS ACTUALLY TAKE MORE ENERGY.
SO WITHOUT KNOWING MORE FACTS ABOUT THAT PROJECT, I DON'T KNOW.
BUT I WILL ALSO SHARE WITH YOU ONE OF THE CHALLENGES OF DOING SMALLER PROJECTS.
UM, THERE'S VULNERABILITY WITH MAKING SURE THE CONTRACTORS ARE GONNA BE ABLE TO DELIVER.
UH, IT'S HARDER TO FIND A LENDER WILLING TO DO THE WORK FOR THE SMALLER PROJECTS.
UM, BUT, UM, MORE IMPORTANTLY, WE DON'T ALLOW PROJECTS TO MOVE FORWARD UNLESS THE SAVINGS EXCEED THE COST.
WHICH FOR A VULNERABLE SMALL BUSINESS IS IMPORTANT, BUT IT'S ALSO HARD BECAUSE THERE ARE SOME FIXED COSTS.
SO YOU, SO I UNDERST SO THAT BUSINESS LIKELY NOT BECAUSE THE VIOLATION WAS THAT THEY WERE, UM, UH, IT WAS NOT THAT, THAT THE, THAT THEY WERE NOT IN COMPLIANCE BECAUSE OF, FOR ENVIRONMENTAL REASONS, NOT NECESSARILY FOR ENERGY CONSUMPTION.
IF, IF THERE WAS AN ENERGY OR WATER SAVING RESULT, WE COULD CERTAINLY LOOK AT IT.
WE WOULD BE AUTHORIZED UNDER THE STATUTE TO LOOK AT IT.
THE OTHER ONE WE GET SOME SIMILAR IS, UH, CODE COMPLIANCE WITH, UM, SPRINKLER SYSTEMS. HOW DO, HOW, YOU KNOW, I SUPPOSE YOU COULD HAVE ONE IF IT DOESN'T USE WATER THAT WOULD SAVE SAVE WATER OVER A TRADITIONAL WATER ONE.
BUT WE HAVEN'T HAD THAT HIT US YET.
BUT THAT'S A HUGE COST THAT MATTERS TO A LOT OF THESE BUILDINGS.
SO I I, I'M, I'M THINKING ABOUT, YOU KNOW, SORT OF OLD, BECAUSE WE HAVE SO MANY OLD BUILDINGS, UM, THAT ARE HAVING TROUBLE MEETING OUR CURRENT CODE REGULATION.
SO THAT'S KIND OF WHAT'S COMING TO MIND.
UM, UH, AND THE OTHER EXAMPLE I THOUGHT OF WAS THE RECENT ADDITION OF AIR CONDITIONING TO OUR, UH, HOUSE SOME HOUSING PROJECTS.
BUT THAT WOULD ALSO NOT BE ELIGIBLE BECAUSE THEY'RE HUD FUNDED PROJECTS OR NOT THAT IT'S NOT ELIGIBLE, THAT IT HASN'T, YOU HAVEN'T HAD SUCCESS WITH THAT.
OUR, UM, ABILITY TO REACH THE RIGHT PEOPLE AT HUD WOULD BE DRAMATICALLY IMPROVED IF WE COULD WORK WITH THE CITY AND MAYBE SOME OF YOUR COUNTERPARTS THAT ALSO HAVE THE PROGRAM.
SO, 'CAUSE THIS IS A BIG ISSUE FOR DALLAS TOO.
AND, UH, WE WOULD LOVE TO HAVE, YOU KNOW, WE, WE NEED TO MOVE THAT FORWARD AND WE KNOW THAT AND WE'RE TRYING.
WELL, I THINK, UM, UM, I, I, SOUNDS WONDERFUL.
UM, I HOPE THAT WE ACTUALLY HAVE SOME SUCCESS, UH, HERE IN SAN ANTONIO WITH SOME OF THESE PROJECTS.
I KNOW, UM, I'M THINKING ABOUT COUNCIL WOMEN'S, UH, BUSINESS LEGACY PROGRAM AND WOULD SOME OF OUR OLD LEGACY BUSINESSES BE ABLE TO TAKE ADVANTAGE BECAUSE WE KNOW SO MANY OF OUR BUILDINGS ARE OUT OF, UH, OUT OF, UH, WELL, I SUSPECT THEY'RE OUT OF COMPLIANCE, BUT THEY'RE ALSO JUST NOT ENERGY EFFICIENT BECAUSE THEY'RE OLD.
UH, SO I WONDER IF, I DON'T KNOW, AND SO CAN WE MARKET, IS IT APPROPRIATE FOR THEM? I THINK COUNCILWOMAN HAVE ASKED THIS QUESTION, IS IT APPROPRIATE FOR US TO MARKET? WHERE ARE, WHERE THE TEXAS PACE AUTHORITY REPORTS TO ECONOMIC DEVELOPMENT? WE SEEM TO DO A WHOLE LOT BETTER.
UM, BECAUSE ALL OF THE, THESE COMMUNICATION OPPORTUNITIES ARE ALREADY IN PLACE.
WHEN A PROPERTY OWNER COMES IN AND SAYS, OR A DEVELOPER COMES IN AND SAYS, I WANNA BUY THIS BUILDING.
WHAT CAN YOU GIVE ME? WHAT INCENTIVES DO YOU HAVE? THIS IS THE ONLY ONE IN YOUR TOOL BELT THAT WILL NOT COST THE CITY A DIME.
THAT BARFIELD BUILDING REAL QUICK, THAT BARFIELD BUILDING IS AN EYESORE IN THE CENTER OF AMARILLO.
IT HAS HAD ALMOST EVERY WINDOW BROKEN FOR 25 YEARS.
THAT'S THE PICTURE OF WHAT IT'S GONNA LOOK LIKE WHEN IT'S DONE.
BUT YOU CAN'T WALK DOWNTOWN IN AMARILLO WITHOUT LOOKING AT THIS DEPRESSING EYESORE.
IT WILL CHANGE THE COMMUNITY FOR BLOCKS AROUND IT.
WE'VE DONE SEVERAL OF THOSE THIS YEAR.
BUT THE OTHER THING THAT'S REALLY FUN, FORGIVE ME, THAT BUILDING WHEN IT REOPENS IS GOING TO BE A MARRIOTT AUTOGRAPH HOTEL THAT IS CREATING 55 PERMANENT JOBS.
THE PLAZA HOTEL, WHICH HAS BEEN EMPTY IN EL PASO FOR 25 YEARS WHEN IT REOPENS WITH PARTLY WITH PACE FINANCING, IS GONNA CREATE 161 PERMANENT JOBS.
WE HAD A LITTLE, UH, EMPTY HAGGAR SEWING PLANT IN CORSICANA EMPTY FOR 10 YEARS, WAS PURCHASED BY A CHEERLEADING UNIFORM MANUFACTURER IN MISSOURI,
[00:40:01]
UH, WHO TOLD NAVARRO COUNTY, IF YOU'LL CREATE THE PACE PROGRAM, WE'LL BUY THAT BUILDING 60 PERMANENT JOBS.SO WE REALLY HOPE TO MAKE SOME CHANGES AND WHILE PEOPLE WILL LOOK AT THESE BIG HISTORIC BUILDINGS, THEY'RE WONDERFUL OPPORTUNITIES.
YOU ARE FULL, YOUR CITY IS FULL OF WONDERFUL CLASS B AND C BUILDINGS THAT REALLY NEED HELP.
THAT'S WHERE WE WOULD LOVE TO MAKE A DIFFERENCE.
I'LL ADD ONE EXTRA THING ON TOP OF THAT.
SO IT'S, IT'S ABSOLUTELY IMPORTANT FOR US TO MARKET THIS BECAUSE WHEN WE'RE GETTING OUT IN FRONT OF SMALL BUSINESSES LIKE YOU HAD REFERENCED EARLIER, WHILE THEY MIGHT NOT BE ELIGIBLE FOR THAT PACE LOAN IN THAT INSTANCE, THAT'S WHERE WE COULD PUSH THEM OVER TO LIFT FUND BECAUSE OF THE AGREEMENT WE HAVE FOR THOSE 0% INTEREST LOANS WHERE THEY COULD MAYBE ACCESS THE LENDING THROUGH THAT MECHANISM AND ACHIEVE THOSE SAVINGS WHERE THEY'RE NOT HAVING TO PAY THOSE INTEREST ON THEIR LOANS IF THEY'RE IN FACT A, UH, SMALL MINORITY WOMEN-OWNED BUSINESS.
WE'RE ALSO GOING TO BE WORKING WITH OTHER CITY DEPARTMENTS LIKE SUSTAINABILITY, NEIGHBORHOOD HOUSING SERVICES, C C D O, OTHERS WHO HAVE TIE-INS TO THESE TYPE OF LOANS SO THAT THEY CAN ALSO HELP US GET THIS INFORMATION OUT TO PROPERTY OWNERS AS WELL.
UH, ONE THOUGHT CAME TO MY MIND.
WE HAVE A LOT OF NONPROFITS, BUT MANY OF THEM ARE IN RELATIVELY SMALL BUILDINGS.
THEY MAY HAVE AN OLD HOUSE THAT THEY'VE RENOVATED AND THEY USE FOR OFFICE SPACE FOR THEIR NONPROFIT.
UM, WOULD SOMETHING LIKE THAT BE ELIGIBLE MM-HMM.
NONPROFITS ARE ELIGIBLE, UM, FOR THIS OF COURSE IF THEY HAVE TO PROVE OUT THAT THE BENEFITS FROM THE PROJECT OUTWEIGH THE COST FROM THE LOAN, BUT YES, ABSOLUTELY.
NOW, IF THEY'RE GONNA BE DOING ELECTRICAL WORK TO IMPROVE THEIR ENERGY AND EVERYTHING, DOES THAT NEW WORK HAVE TO COME UP TO CITY STANDARD CODES TODAY? YES.
I WOULD BELIEVE IT'D BE SOMEBODY WOULD INSPECT THAT WORK.
SO WATER, PLUMBING, ELECTRIC, A LOT OF THAT WOULD HAVE TO MEET CITY CODES, WHICH ACTUALLY BECOMES PRETTY EXPENSIVE, DOESN'T IT? MM-HMM.
UM, HOW ABOUT FOR THE SAN ANTONIO HOUSING AUTHORITY? MM-HMM.
AND THERE'S THOUSANDS OF THOSE UNITS IN THIS CITY.
I, I BELIEVE CHARLENE TOUCHED ON THAT EARLIER, THAT SHE'S TRYING TO GET THIS PROGRAM, UM, ACCESS TO THOSE HUD PROJECTS.
SO THAT'S SOMETHING SHE'S BEEN WORKING ON.
WHILE SHE HASN'T HAD A LOAN HAPPEN YET, SHE'S TRYING TO MAKE ENTRYWAY INTO THAT SO THAT THEY CAN OCCUR.
'CAUSE WE PARTNER WITH THEM ON THINGS, BUT IT'S NOT AN ELECTED GOVERNMENTAL BODY LIKE COUNCIL OR SOMETHING LIKE THAT.
SO, BUT I THINK THAT'S SOMETHING WORTH EXPLORING TOO.
UM, YOU TALKED ABOUT THE REQUIREMENTS, UH, FOR A PACE ENTITY MM-HMM.
AND I UNDERSTAND THAT THE IDEA IS THERE COULD BE MORE MM-HMM.
I APOLOGIZE FOR THAT MISCOMMUNICATION.
I SHOULD HAVE LAYERED THAT INTO MY COMMENTS EARLIER.
SO THERE'S, THERE'S REALLY KIND OF TWO OPTIONS ON THE TABLE AFTER LEARNING.
THERE'S MORE ENTITIES OUT THERE.
ONE IS DOING THE R F P, WHICH AS YOU MENTIONED, DOES TAKE A WHILE LONGER, PROBABLY SOMEWHERE IN THE APRIL TIMEFRAME.
WE WOULD HAVE TO COME BACK TO YOU WITH A SELECTION.
THE RECOMMENDATION WE'RE PROPOSING IS INSTEAD TO KIND OF OPEN IT UP TO CAPTURE ANYBODY WHO MEETS THESE CRITERIA THAT YOU ALL WOULD SET TO BE ABLE TO FACILITATE PACE LOANS.
KIND OF THE THEORY BEHIND ALLOWING THAT IS BECAUSE IN THOUGHT IT WOULD, UM, SPUR COMPETITION AMONGST THEM AND POTENTIALLY REDUCE FEES.
AND IT'S SOMETHING WE WOULD MONITOR OVER TIME.
AND IF IT DOESN'T PLAY OUT LIKE INTENDED, WE COULD ALWAYS COME BACK AT A LATER POINT AND RECOMMEND GOING THAT R F P ROUTE.
SO YOU'RE SAYING LOOK AT WHOEVER COMES FORWARD RIGHT NOW AND MAKE A CHOICE OUT OF ONE OF 'EM.
YOU MAY RECOMMEND SOMEBODY NO.
WELL, IT WAS RECOMMENDED THAT THE CRITERIA TO SELECT THE THIRD PARTY ADMINISTRATORS IS WHAT WAS ON THE PREVIOUS SLIDE.
UM, WE HOPE, AND WE, WE, WE FEEL LIKE THAT IS GONNA BE GOOD CRITERIA TO MAKE SURE THAT THEY FACILITATE THE LOANS.
HOWEVER, IT DOESN'T PLAY OUT LIKE INTENDED.
WE HAVE THE ABILITY TO PUMP THE
[00:45:01]
BRAKES AT THAT POINT AND POTENTIALLY SHUT DOWN AND GO TO AN R F P PROCESS THAT WOULD POTENTIALLY SELECT ONE, UH, THIRD PARTY ADMINISTRATOR.SO WE'D LEAVE THIS OPEN TO ANY THIRD PARTY ADMINISTRATORS TO COME AND SAY, WE'D LIKE TO SERVICE THIS COMPANY IN SAN ANTONIO THAT WANTS TO DO THIS.
AS LONG AS THEY MEET THIS CRITERIA THAT I'M PROPOSING ON THIS SCREEN.
I, I UNDERSTAND NOW A LITTLE BIT BETTER.
UM, NOW I UNDERSTAND THAT IT'S AT NO COST TO THE CITY OTHER THAN MAYBE A LITTLE BIT OF STAFF TIME.
SO ARE ANY OF THE OTHER CITIES THAT ARE ENGAGED IN THIS ASKING FOR ANYTHING IN RETURN? I BELIEVE THERE IS ONE CITY THAT DOES ASK FOR FUNDING IN RETURN.
UH, I THINK IT'S THE CITY OF DALLAS AND I THINK CHARLENE CAN PROBABLY TALK A LITTLE MORE ABOUT THAT.
YEAH, I'D LIKE TO HEAR ABOUT THAT.
THE CITY OF DALLAS, UM, HAS FEES THAT DO NOT APPLY TO NONPROFITS.
THEY START AT 250,000 AND THE FEES GO UP IN A TIERED WAY, UM, THAT MAKES THE PROJECTS MORE EXPENSIVE AND HARDER TO MAKE CASH FLOW POSITIVE.
SO TO THE EXTENT THAT WE WANT THE PROGRAM TO SERVE EVERYONE, UM, SINCE IT'S NOT COSTING THE CITY ANYTHING, WE BELIEVE AND ALL OF THE GOVERNMENTS BUT ONE HAVE AGREED THAT THE INDIRECT ECONOMIC BENEFITS THAT YOU'LL RECEIVE IN TERMS OF IMPROVED PROPERTIES, PROPERTIES, GOING BACK ON THE TAX RULES, JOBS CREATION, UH, ENVIRONMENTAL SAVINGS, THOSE INDIRECT BENEFITS WILL MORE THAN COMPENSATE THE CITY FOR THE PROGRAM.
UM, GIVEN WE THINK THAT THE, THE VOLUME OF THAT OVER TIME WILL BE FAR GREATER THAN A FEE THAT WILL ACTUALLY, UM, CREATE A BARRIER FOR SOME PROPERTY OWNERS TO ACCESS THE PROGRAM, WILL BENEFIT THE CITY IN A GREATER WAY.
HAVE YOU, UH, INITIATED ANY PRO PROJECTS IN DALLAS SO FAR? YES, SIR.
BOTH THE LARGEST AND THE SMALLEST.
SO THEY WERE BOTH WILLING TO PAY THAT FEE THEN I PRESUME TO DALLAS? UH, IT DIDN'T APPLY TO THE SMALLER ONE.
UM, THE LARGER ONES, MY UNDERSTANDING IS THAT THERE'S SOME NEGOTIATIONS THAT WENT ON THERE, BUT IT'S, UH, NOT SOMETHING WE WERE INVOLVED IN, NOR SHOULD WE BE INVOLVED IN.
YOU PROBABLY WOULDN'T KNOW ABOUT THE LONE STAR PROJECT TO TELL IF, FOR EXAMPLE, HARRIS COUNTY OR HOUSTON, IF THEY'RE DOING THAT, IF THEY CHARGE A FEE OTHER THAN THE FEES THAT I'M NOT AWARE OF ANY OTHER LOCAL GOVERNMENT CHARGING A FEE.
IT'S REALLY COUNTERINTUITIVE TO THE WHOLE PACE IN A BOX MODEL THAT WE'RE TRYING TO CREATE.
WE'VE BEEN AT THIS FOR FOUR YEARS NOW.
UM, THIS HAS BEEN OUR FIRST YEAR THAT WE'RE COMING CLOSE TO BREAKING EVEN.
AND AS A NONPROFIT DESIGNED TO MAKE SACRIFICES SO EVERYBODY ELSE COULD MAKE MONEY, UM, WE COULD JUST GET A LITTLE WORRIED.
WE'VE, WE'VE SACRIFICED A GREAT DEAL TO GET THIS UP AND RUNNING.
SO ANYTHING THAT MAKES IT COST MORE JUST MAKES IT HARDER FOR US TO GET TO THE VOLUME WE NEED TO MAKE THIS WORK.
I GUESS MY BIGGEST CONCERN WOULD JUST BE DOWN THE LINE IF, UH, ANY ORGANIZATION STARTED HAVING DIFFICULTIES AND WANTED TO COME TO THE CITY FOR MORE SUPPORT, YOU KNOW, I THINK I JUST WANNA BE AWARE THAT IT'S A POSSIBILITY OR HOW WE WOULD HANDLE THAT SHOULD SOMETHING LIKE THAT COME UP.
SO COUNCILMAN, WE DID EXPLORE THAT WITH CHARLENE WHEN WE FOUND OUT THAT DALLAS DID COLLECT A FEE AND WE TRY TO THINK HOW A WAY WOULD WE ACTIVATE IT IF WE DID THAT AS WELL.
FROM A MARKETING STANDPOINT, WE LARGELY DO THAT ON OUR OWN AND WE COULD FIT THIS INTO OUR CURRENT MECHANISMS IN PLACE.
SO WE DIDN'T THINK THAT'S WHERE WE WOULD ACTIVATE THE FUNDS.
AND THEN AT THIS TIME, SINCE WE HAVEN'T GATHERED DATA ON THE FOLKS WHO WANT A PACE LOAN VERSUS WHO'S COMPLETED VERSUS WHO'S INTERESTED TO IDENTIFY THOSE GAPS, WE DIDN'T KNOW AT THIS POINT HOW WE WOULD ACTIVATE IT TO CLOSE THEM.
SO WE FEEL MAYBE AFTER WE GO OUT, GATHER THE DATA WHEN IT COMES BACK, IF WE IDENTIFY THE GAPS, MAYBE AT THAT POINT WE COME BACK AND POTENTIALLY COLLECT A FEE TO ADDRESS IT.
SOMEBODY MENTIONED, UH, THE COUNCILS OF GOVERNMENT, THE COGS.
UM, TO WHAT EXTENT ARE THEY INVOLVED IN PACE AT ALL, OR DO THEY HAVE PROGRAMS THAT ARE RUNNING PARALLEL TO THIS? SO MY UNDERSTANDING IS THE COGS DO WORK WITH SOME LOCAL MUNICIPALITIES AND THEY IN FACT THEN CONTRACT WITH THE TEXAS PACE AUTHORITY.
[00:50:01]
UM, OF THOSE 36 CITIES AND COUNTIES I DISCUSSED EARLIER, THEY'RE PROBABLY IN AROUND FIVE TO SIX.UM, SOME IN THE LOWER RIO GRANDE AND I THINK SOME MAYBE IN HON AND MEDINA AREA.
IF YOU, IF YOU WANNA ADD TO THAT, YOU SHOULD PROBABLY STAY UP THERE ANYWAY.
WHEN WE KNEW, WHEN WE REALIZED IN 2013 THAT LOCAL GOVERNMENTS REALLY COULDN'T DO THIS IN-HOUSE, WE ACTUALLY WROTE PAY IN A BOX FOR COGS.
THE ONLY TWO COGS THAT EXPRESSED ANY INTEREST WERE THE LOWER RIO GRANDE VALLEY COG, WHICH IS WHY WE WERE IN HIDA, CAMERON AND WILLIS SEE PRETTY QUICKLY AND ACOG.
AND AT THE TIME, UM, THERE WAS A STAFF CHANGE OR SOMETHING AND ACOG WASN'T ABLE TO PICK IT UP.
UM, ABOUT TWO MONTHS AGO, THE BOARD VOTED TO OFF TO BECOME AN ADMINISTRATOR FOR A REGIONAL PACE PROGRAM.
AND UM, WE ARE WORKING WITH ACOG IN SEVEN OR EIGHT LOCAL JURISDICTIONS NOW THAT ARE ALL FORMING A PACE PROGRAM.
THIS IS SOMETHING WE PRESENTED TO STAFF AS AN OPTION FOR YOU.
UM, HAVING THAT REGIONAL POWERHOUSE IS, WELL THAT MAY, THAT'S NOT THE RIGHT WORD, BUT HAVING A REGIONAL PACE PROGRAM HAS CLEAN AIR BENEFITS, UM, UH, UH, SCALE.
UH, BUT UH, THAT'S NOT WHAT'S BEING PROPOSED TO YOU TODAY.
BUT, SO BEGGING THE QUESTION, WHY NOT? AND THAT'S NOT FOR YOU TO ANSWER.
I MEAN, WHY, I MEAN, IF THAT'S AN OPTION, IT SEEMS TO ME THAT THE COGS HAVE THE ABILITY TO SCALE MM-HMM.
SO I DID ASK CHARLENE KIND OF WHAT IS THE BENEFIT OF GOING WITH A COG? WHAT VALUE DO YOU GET OUTTA THAT? SO MAYBE I COULD UNDERSTAND WHERE SHE WAS COMING FROM.
IT, CHARLENE EXPLAINED A LOT OF IT WAS MARKETING OUTREACH WORKSHOPS AND ENGAGEMENT THINGS THAT WE FELT LIKE AT THE CITY OF SAN ANTONIO, WE COULD DO OURSELVES.
TAKE THAT IN-HOUSE THROUGH OUR MECHANISMS AND HOSTING THOSE WORKSHOPS OURSELVES AND DIRECTING, UH, CONTRACTING DIRECTLY, UM, POTENTIALLY WITH AN ENTITY TO GET THE DATA WE WANT TO GET ON THE DEMOGRAPHICS OF THE PROPERTY OWNERS INTERESTED IN LOANS AND THOSE COMPLETING TO IDENTIFY THOSE GAPS.
IT WOULD JUST GO DIRECT TO THE SOURCE TO SOME DEGREE, AND THEN WE COULD SUPPLEMENT THOSE MARKETING EFFORTS.
SO IF WE DECIDE TO TAKE THIS ON, I MEAN, EVERYTHING'S GOT A COST, RIGHT? SO MM-HMM.
DO YOU ANTICIPATE US HAVING TO HIRE SOMEBODY NEW TO TACKLE THIS? I DON'T FORESEE THAT AT THIS MOMENT.
I FEEL LIKE THROUGH OUR CURRENT MECHANISMS, WE CAN PLUG THIS IN TO OUR CURRENT EFFORTS TO GET THE WORD OUT.
I WAS ABOUT TO SAY THAT AS WELL.
UH, COUNCILMAN, YOU KNOW, WE ALREADY DO A LOT OF THE MARKETING EFFORTS, FOR EXAMPLE, OPPORTUNITY ZONES WHERE WE ENGAGED IN THAT, WHERE MARKETING, WHERE THOSE ARE AREAS WHERE WE COULD ALSO SLIP THIS PROGRAM AS PART OF THAT.
UM, HISTORIC PRESERVATION DOES A LOT OF WORK ON REHAB OF BUILDINGS.
UH, CERTAINLY ACOG COULD, COULD BE THE PER THE PARTY DOING THAT, BUT WE CAN HAVE DIRECT CONTROL OVER OUR ABILITY TO MARKET THOSE.
AS A COUNCILMAN INDICATED ATTENDING HER MEETINGS IN DISTRICT SIX AND MARKETING IT THERE.
SO OUR, OUR BELIEF WAS THIS WAS A CLEANER WAY WE COULD ACTUALLY, UH, HELP TO, TO MAKE THIS A SUCCESS.
I BELIEVE ACOG MAY BE NEGOTIATING A FEE FOR THEIR SERVICES.
AND WE WERE AT THIS POINT NOT DOING THAT BECAUSE WE WANTED TO, NUMBER ONE, TO UNDERSTAND WHAT THE GAPS WERE, GATHER THE INFORMATION.
WE'RE ALSO ASKING FOR A LOT OF INFORMATION BACK FROM, FROM WHOEVER THE ADMINISTRATOR IS.
AND THAT'S NOT, THAT BECOMES NOT SOMETHING THAT WE CAN CONTROL OF.
THINK IF IT'S, IF IT'S ANOTHER ENTITY LIKE THE COG DOING THAT.
SO, UM, AS FAR AS, AND SHIFTING OVER TO THE, THE ASSESSMENTS OR THE, THE ACTUAL FINANCING, I, I UNDERSTAND THAT IT'S GONNA BE FOR FIXTURES, RIGHT? TO THE REAL PROPERTY.
IT CAN'T BE AN UNDEVELOPED LOT OR NEW CONSTRUCTION.
CAN I KNOCK THE BUILDING DOWN AND BUILD UP? MM-HMM.
THE STATUTE HAS LANGUAGE FROM 2009
UM, THE TERM LOT AND THE TERM DEVELOPED ARE NOT DEFINED IN TEXAS LAW.
AND BECAUSE IT'S A PROHIBITION, WE HAVE TO TAKE IT PRETTY SERIOUSLY BECAUSE IF SOMEONE WERE TO CHALLENGE THAT, WE WENT OUTSIDE THE STATUTE, THAT LIEN COULD NOT BE ENFORCED.
SO WE AFTER A LOT OF, UM, ENCOURAGEMENT FROM DEVELOPERS TO ALLOW AS MUCH AS POSSIBLE AND, UH, ADVICE FROM OUR, UH, UH, ATTORNEYS, THE GROUP THAT CREATED PACE IN A BOX ADVISED US THAT, UM, WE COULD DO TEAR DOWNS AND REBUILDS.
[00:55:01]
WE CAN DO ADDITIONS TO EXIST, ADDITIONS TO EXISTING PROPERTY.THAT'S CLEARLY A DEVELOPED LOT NEW CONSTRUCTION ON A DEVELOPED LOT.
IF THERE WAS A LOT LIKE A HOTEL AND THEY WANTED TO ADD A SECOND BUILDING ON THE SAME PARCEL THAT WOULD BE NEW CONSTRUCTION ON A DEVELOPED LOT.
AND THE ISSUE BECAME, CAN WE DO TEAR DOWNS AND REBUILDS? WE CANNOT DO GREENFIELDS, BUT COULD WE DO TEAR DOWNS AND REBUILDS? AND AFTER A LOT OF LEGAL BACK AND FORTH, UH, ONE OF THE ATTORNEYS SAID, YOU KNOW, YOU CAN'T UNDEVELOPED A LOT.
SO IF A LOT HAS BEEN DEVELOPED, WE CAN DO A TEAR DOWN AND REBUILD.
SO NOW THE CHALLENGE IS DEVELOPERS ARE AMAZINGLY CREATIVE.
UM, SO IS AN ORCHARD DEVELOPED? IS A GRAVEL PARKING LOT DEVELOPED? WELL, FROM A LEGAL PERSPECTIVE, DEFENSIBLE, NO.
SO WE HAVE CREATED, WE ENDED UP CREATING A FORM TO SAY TO THE DEVELOPERS AND THE PROPERTY OWNERS, YOU MAKE YOUR BEST CASE THAT THIS IS DEVELOPED AND OUR CLIENT, THE LOCAL GOVERNMENT WILL, WILL SPEAK TO THAT.
IS IT, DOES IT PASS THE LAUGH TEST? IS IT LEGITIMATE? COULD IT BE DEFENDED IN COURT? SO, AND THIS IS MY LAST QUESTION REALLY.
IS THIS FOR MORE THAN JUST THE COST OF THE BUILDING OR THE RETROFITTING, BUT WILL IT ALSO, UH, YOU KNOW, CAN THE MONEY ALSO BE USED FOR DEVELOPMENT FEES AND ENGINEERING FEES AND ARCHITECTS AND PERMITS AND ALL THAT? THIS COMMITTEE'S QUESTIONS ARE GREAT.
UM, THE STATUTE LAYS OUT WHAT CAN BE USED.
SO INSIDE THE ASSESSMENT, YOU CAN PLUG THE COST OF THE MONEY, UH, THE ACTUAL COST OF THE PROJECT, UH, THE SURVEY ARCHITECT ENGINEERING, ALL THE, IT'S BASICALLY ALL THE HARD AND SOFT COST OF THE PROJECT.
UH, THE ORIGINATION FEES, THE ADMINISTRATOR FEES ALL GO INTO IT.
SO, BUT THEN THE BALANCE BECOMES, HOW BIG IS IT? IS IT STILL LESS THAN THE SAVINGS? OKAY, THANKS.
WE TRY AND MAKE EVERYBODY BE REALLY HOLISTIC ABOUT THESE PROJECTS.
IF YOU DO A ONE, DO YOU MIND? OKAY, THANKS.
IF YOU DO A ONE FOR ONE REPLACEMENT ON AN HVAC SYSTEM, YOU'RE GONNA SAVE MONEY BECAUSE THE NEW HVAC SYSTEM IS GOING TO BE MORE EFFICIENT THAN THE OLD ONE.
UM, IN ADDITION TO THAT, THE COOLANT THAT A LOT OF THESE OLD AIR CONDITIONERS ARE USING IS NOT GONNA BE AVAILABLE STARTING NEXT YEAR.
BUT IF YOU REPLACE THAT AIR CONDITIONER AND THEN GO AND DO YOUR LIGHTS, WHICH AREN'T GONNA BURN AS HOT AND PUT A ROOF THAT'S REFLECTING THE HEAT, INSTEAD OF ABSORBING IT AND MAYBE DO A LITTLE INSULATION, NOT ONLY ARE YOU GONNA BRING THE OVERALL COST DOWN BECAUSE THESE OTHER ITEMS DON'T COST NEARLY AS MUCH AS THE HVAC SYSTEM.
SO THEY BALANCE TO GET TO THAT CASH FLOW.
BUT IF YOU DO ALL THOSE OTHER THINGS SO THAT YOU'RE BUILDING NO LONGER UNNECESSARILY ABSORBS HEAT AND IS NO LONGER UNNECESSARILY AIR CONDITIONING THE STREET, YOU'RE GONNA BE ABLE TO BUY LESS AIR CONDITIONING.
SO A A, GETTING THE COMMUNITY TO UNDERSTAND THAT PEOPLE CAN NOW AFFORD TO BE HOLISTIC ABOUT THEIR BUILDINGS.
THAT'S WHAT TAKES TIME, BECAUSE PROPERTY OWNERS HAVE NEVER BEEN ABLE TO THINK THAT WAY.
SO CONTRACTORS AND ARCHITECTS DON'T EVEN KNOW HOW TO APPROACH IT.
SO THIS WILL, THE EDUCATION PIECE OF THIS WILL TAKE TIME.
UM, OKAY, SO WE, WE'VE GOTTA KEEP GOING.
SO WE HAVE ONE MORE QUESTION HERE.
UM, AND THEN MICHAEL, THEN I'M GONNA CLOSE IT OUT.
AND THEN MICHAEL, UH, IF YOU HAVE OTHER THINGS.
WE, WE'VE BEEN TALKING ABOUT ENERGY EFFICIENCY AND, AND WATER EFFICIENCY.
HAVE WE SPOKEN WITH SAWS OR C P S BECAUSE THEY PROVIDE, UH, A LOT OF SPECIAL PROGRAMS TO HELP WITH WATER EFFICIENCY AND ENERGY EFFICIENCY.
UH, COULD ANY OF THIS TYPE OF A PROGRAM CAUSE SAWS OF C P S TO CHANGE WHAT THEY DO? MAYBE NOT TO PROVIDE WAIVERS OR, UH, THINGS OF THAT NATURE, SAY, WELL, YOU CAN GO OUT AND GET A LOAN FOR THAT.
AND SO WE ARE NOT GOING TO DISCOUNT OR OFFER ANYTHING SPECIAL.
SO, UM, IF WE'VE TALKED TO SAS AND C P S AND GOTTEN SOME FEEDBACK FROM THEM, GREAT.
BUT IF WE HAVEN'T, I THINK WE NEED TO.
OH, SO I HAVEN'T SPOKEN TO, TO SAAS, BUT THE FIRST STEP WAS TALKING TO C P SS, UM, MAKING SURE THEY'RE AWARE OF THE PROGRAM.
THEY ARE, UH, I THINK, UM, THEIR INTEREST IS, IT CAN HELP LEVERAGE THE RESOURCES THAT THEY HAVE.
SO I THINK THE GOAL IS, UH, A PROPERTY THAT WOULD BE ELIGIBLE FOR PAY FOR PACE CAN GET THAT PACE LOAN, BUT THEN CAN ALSO TAP INTO ADDITIONAL, UM, REBATES TO MAKE THE PROJECT EVEN MORE COST EFFECTIVE.
I'D JUST LIKE TO HEAR FEEDBACK FROM BOTH SAWS AND C P S AS WE EXPLORE THIS FURTHER.
SO, AS WHAT WAS JUST MENTIONED, IF WE'RE GOING TO VOTE ON THIS IN NEXT WEEK, WE'D NEED TO HAVE SOME FEEDBACK FROM SAWS AND C P S BEFORE THAT TOO.
I TO MAKE SURE THAT WE DO THAT.
UM, PART OF THIS, IF WE ARE OPENING THIS UP FOR MULTIPLE ADMINISTRATORS, MICHAEL, I THINK, AND THEN SEEING, I LIKEN IT TO WHAT
[01:00:01]
WE DID WITH THE TNCS WHEN WE DID HAVE A, UM, A REVIEW PROCESS WITH THE ADMINISTRATION THAT PEOPLE WOULD COME IN, UH, WHEN WE DID HAVE A CONTRACT BACK THEN MM-HMM.BUT THAT IT WOULD HAVE TO MEET OUR CRITERIA AS WELL.
UM, SO AS WE'RE LOOKING AT THAT, I THINK PART OF THE ISSUE THAT WE NEED TO DO IS HAVE A REVIEW OF THIS, LIKE YOU MENTIONED, IS THIS WORKING IS NOT WORKING.
IF WE HAVE MAYBE FIVE OTHER PEOPLE THAT ARE COMING IN, BUT NOT DOING IT AS EFFICIENTLY AS, UM, ANOTHER, UH, THOSE THAT HAVE BEEN DOING IT IN TEXAS THAT WE DO GO FORWARD WITH A REVIEW IN, IN A YEAR MM-HMM.
AND THAT WE DO SAY, OKAY, IS THIS WORKING? IS IT NOT WORKING? DO WE HAVE TO GO OUT TO AN R F P OR NOT A YEAR OR SOONER IF WE SEE LIKE, CLEARLY THAT IT'S NOT WORKING.
UM, ALTHOUGH I'M, I'M VERY GRATEFUL TO SEE THIS COMING FORWARD AND, AND MOVING FORWARD.
PART OF MY CONCERN WITH THIS IS TOUCHED ON A LITTLE BIT, UH, WHAT COUNCIL MEMBER GONZALEZ WAS SHARING IS I FEEL LIKE WE'RE GOING TO BE GIVING THESE OPPORTUNITIES TO, UM, PEOPLE OR COMPANIES, BUSINESSES WHO CAN'T AFFORD $5 MILLION LOANS OR CAN GO TO A BANK FOR A $5 MILLION LOAN, BUT IT'S OUR SMALL AND LEGACY BUSINESSES WHO CAN'T EVEN GET A LOAN FROM A BANK RIGHT NOW AND STILL WON'T BE ABLE TO GET A LOAN, EVEN WITH THIS PACE PROJECT.
AND THEY, WE HAVE OUR LEGACY BUSINESS PROGRAM, WE HAVE OUR GRANT PROGRAMS, BUT THIS ISN'T, AND THEY'RE TRYING TO BE MORE, UM, WATER EFFICIENT, ENERGY CONSERVATION EFFICIENT, BUT THEY'RE STILL NOT GONNA HAVE ACCESS TO THIS MONEY OR THESE LONG-TERM LOANS.
I STILL WE'RE, I FEEL WE'RE STILL, WE'RE GOING TO BE ABLE TO BE GIVING, UM, THESE LONG-TERM LOW COST FINANCING TOOLS FOR BIG PROJECTS ON BROADWAY, BUT NOT ON, ON BRUSSELS.
SO THIS IS WHAT I AM, I'M CONCERNED ABOUT THIS WHOLE THING.
AND WHEN WE'RE LOOKING AT IT EQUITY BASED, UM, THIS IS, THIS IS MY CONCERN THAT I WANTED TO VOICE HERE.
THAT, AND, AND I KNOW THIS IS A STATE, UH, STATE LEGISLATURE IN 2013 THAT MOVED FORWARD, BUT HOW ARE WE AS A CITY GOING TO BE ABLE TO FILL THAT GAP? HOW CAN WE, HOW CAN YOU ALL LOOK AT OUR CRITERIA THAT WE'RE GOING TO PUT FORWARD AND SAY, ALL RIGHT, THIS IS THE KIND OF PERCENTAGE THAT WE'RE LOOKING AT AS WELL, THAT WE WANT YOU TO MAKE YOUR BEST ATTEMPT TO REACH OUT WITH SOUTH SIDE FIRST WITH THE WEST SIDE DEVELOPMENT COUNCIL, WITH ALL OF THE OTHER PLACES IN, UM, THE AREAS, UM, TO HAVE THOSE LEGACY BUSINESSES BUILT BACK UP, OR THOSE SMALL MOM AND POPS.
UM, WHAT ARE WE GOING TO DO? AND I THINK WE NEED TO HAVE THAT EXPECTATION IN THE CRITERIA THAT THEY BEND OVER BACKWARDS IN ORDER TO HELP THEM FIND THAT PRIVATE FUNDING THAT THEY NEED TO, TO INCLUDE IN THE, IN THE, UM, FOR THE NONPROFITS.
THAT'S WHAT I WOULD LIKE TO SEE.
UH, MICHAEL, AND THEN I DID GET A LETTER, I THINK MOST OF US GOT A LETTER FROM THE ARCHDIOCESE OF SAN ANTONIO SAYING THAT THEY WERE IN SUPPORT OF MOVING FORWARD WITH PACE FOR THEIR NONPROFITS AND SOME OF THEIR CHURCHES AND COMMUNITY CENTER AND NONPROFITS THAT ARE GOING TO BE NEEDING SOME OF THIS HELP TOO.
SO, UM, UH, BUT WITH THAT, WHAT YOU'RE LOOKING FOR IS A MOTION TO MOVE THIS TO A RESOLUTION THIS, THIS THURSDAY.
IS THAT CORRECT, MIKE? SO I BELIEVE THIS WAS A BRIEF, HOWEVER, IT'S COMING TO CITY COUNCIL ON THURSDAY ASKING FOR YOU ALL TO APPROVE A RESOLUTION OF INTENT TO ESTABLISH A PACE PROGRAM AND CALL FOR A PUBLIC HEARING.
SO WE DON'T NEED ANY ACTION RIGHT NOW.
I BELIEVE AT THIS MOMENT WE DO NOT NEED ANY ACTION RIGHT NOW BECAUSE THIS IS ALREADY ON AGENDA FOR THURSDAY.
WELL THANK YOU FOR THE BRIEFING.
ANY OTHER ALL? ALRIGHT, THANK YOU VERY MUCH.
[3. 19-8785 A briefing on the Economic Development Department’s new cost-benefit analysis tool. [Carlos Contreras, Assistant City Manager; Alejandra Lopez, Interim Director, Economic Development Department]]
ITEM IS A BRIEFING ON THE ECONOMIC DEVELOPMENT DEPARTMENT'S NEW COST BENEFIT ANALYSIS TOOL.AND WILL ALEX LOVIS BE GIVING THIS PRESENTATION? ALRIGHT, THANK YOU ALEX.
AND THIS IS ACTUALLY A PRETTY BRIEF UPDATE.
AS ALL OF Y'ALL ARE AWARE, OUR DEPARTMENT USES A COST BENEFIT, SORRY, A COST BENEFIT ANALYSIS TOOL TO CALCULATE THE CITY'S FISCAL IMPACT WHENEVER WE RECOMMEND ECONOMIC INCENTIVES.
UM, WHEN WE'RE PURSUING A, A COMPETITIVE PROJECT, EITHER A LOCAL EXPANSION OR SOME SORT OF RECRUITMENT, UM, OF A COMPANY, THE FACTORS THAT WE CONSIDER WHEN WE'RE DOING THIS CALCULATION INCLUDES THE ACTUAL INCENTIVE WE'RE OFFERING, SUCH AS A TAX ABATEMENT OR A GRANT.
UM, IF THERE'S ANY REBATES THAT
[01:05:01]
WE'RE RECOMMENDING, IF THERE'S FEE WAIVERS, UM, AS WELL AS THE BUSINESS IMPACT TO THE COMMUNITY IN THE FORM OF PROPERTY TAXES, UM, AND SALES TAXES FROM THE WAGES AND FROM MANY OF THE CONSTRUCTION ASSOCIATED WITH THE PROJECT.WE ALSO INCLUDE PROJECTED C P S REVENUES BECAUSE WE KNOW THOSE CAN BE SIGNIFICANT AS WELL.
THIS ANALYSIS HELPS US ESTIMATE OUR BREAK EVEN POINT.
AND WHEN THE CITY CAN EXPECT TO BEGIN RECEIVING A FISCAL BENEFIT FROM ANY PARTICULAR PROJECT AS, UM, AS PART OF THE RECENTLY OR THE, THE TAX ABATEMENT GUIDELINES THAT COUNCIL APPROVED A YEAR AGO, UM, COMPANIES NOW HAVE THE OPTION AS PART OF, UH, QUALIFYING FOR THE TAX ABATEMENT.
THEY CAN REINVEST A PORTION OF THE ABATEMENT VALUE INTO INTERNSHIPS, EDUCATION AND WORKFORCE SUPPORT, UM, INTO, UH, SMALL BUSINESS DEVELOPMENT, SUSTAINABILITY EFFORTS, EMPLOYEE WELLNESS AND COMMUTER BENEFITS.
SO IT'S IMPORTANT FOR US TO BE ABLE TO CALCULATE WHAT THAT ABATEMENT VALUE TRULY IS SO THAT WHEN WE'RE NEGOTIATING WITH COMPANIES, WE KNOW WHAT WHAT WE COULD REALISTICALLY BE ASKING FOR.
CURRENTLY, THE COST BENEFIT ANALYSIS TOOL THAT WE USE IS A COMPLEX 22 TAB, MICROSOFT EXCEL WORKSHEET.
UM, IT, IT PROVIDES US ACCURATE INFORMATION, BUT IT IS RATHER COMPLEX.
AND LAST YEAR WE BEGAN THE PROCESS OF LOOKING FOR A NEW TOOL THAT COULD IMPROVE THIS PROCESS FOR US.
OUR GOAL IN IDENTIFYING THIS NEW TOOL INCLUDED, INCLUDED REDUCING THE MANUAL ENTRY THAT'S REQUIRED FROM STAFF, AUTOMATING ANNUAL UPDATES, UM, CREATING A CUSTOMIZABLE AND EASY TO USE REPORTS, AND ALSO THE OPPORTUNITY TO INCLUDE ADDITIONAL COSTS AND REVENUES, SUCH AS COST TO GOVERNMENT SERVICES, ESTIMATED RESIDENTIAL DEVELOPMENT, AND MISCELLANEOUS TAXES AND USER FEES THROUGH AN INFORMAL BIDDING PROCESS.
WE SELECTED IMPACT DASHBOARD AS OUR NEW COST BENEFIT ANALYSIS TOOL BECAUSE OF ITS ABILITY TO PROVIDE HIGHLY CUSTOMIZABLE PROFILES, UM, FOR OUR PROJECTS.
IT ALSO PROVIDES, UH, ENHANCED CUSTOMER SUPPORT, ONE-ON-ONE SUPPORT FOR STAFF IF WE HAVE ANY QUESTIONS OR, OR ISSUES WITH THE SYSTEM.
SO WE REALLY APPRECIATED THAT PART OF IT AS WELL.
IMPACT DASHBOARD HAS 144 SUBSCRIBERS IN THE US AND THEY, THESE SUBSCRIBERS HAVE RUN NEARLY 2,500 PROJECTS THROUGH THIS, THROUGH THE MODEL, THROUGH THE SYSTEM ALREADY.
UM, THERE'S VERY VARIOUS COMMUNITIES ACROSS TEXAS, INCLUDING EL PASO, FORT WORTH, HOUSTON, NEW BRAUNFELS, AND ALSO PORT SAN ANTONIO USES THIS TOOL.
SO AS WE PREPARED IN, IN TO USE THIS NEW TOOL, UM, WE DISCUSSED THE OUTPUTS AND THE DIFFERENT VARIABLES, UM, THAT GO INTO THE CALCULATIONS THAT THIS MODEL USES.
WE DISCUSSED WITH THE IMPACT DASHBOARDS IN-HOUSE, UM, ECONOMISTS.
HE'S, HE DOES OUR, A LOT OF OUR MODELING FOR US NOW.
UM, AND THEN RESPECTIVE CITY DEPARTMENTS BECAUSE, UH, FINANCE AND BUDGET ARE ALSO VERY MUCH INVOLVED IN A LOT OF THE MODELING AND SOME OF THE DATA THAT WE USE FOR THE MODELING IN THE SYSTEM.
THIS IS A QUICK SNAPSHOT OF THE DATA ENTRY ELEMENTS OUR STAFF WILL PROVIDE FOR THE ANALYSIS.
THIS DATA INCLUDES JOBS, SALARIES, CAPITAL INVESTMENT, UH, C P S TRANSFER PAYMENTS, AND ALONG WITH TAXABLE PURCHASES AND TAXABLE SALES.
THIS EXAMPLE RIGHT HERE SHOWS THE TABS COLLAPSED, UM, BUT THE CAPITAL INVESTMENT SECTION IS ACTUALLY EXPANDED TO SHOW THE LEVEL OF DETAIL WE PROVIDE BY YEAR.
AND THEN REAL VERSUS PERSONAL PROPERTY.
ALL OF THIS IS CALCULATED INTO THE BREAKDOWN BECAUSE THE SOFTWARE HAS OUR SAN ANTONIO ECONOMIC PROFILE AND TAX STRUCTURE BUILT IN.
THE REPORT IS GENERATED AUTOMATICALLY.
UM, THIS IS WHAT THE COMPLETE REPORT WILL LOOK LIKE ON THE, THE SMALL IMAGE ON THE LEFT SIDE OF THE SCREEN.
UM, THE OTHER IMAGE IS A BLOWN UP VERSION OF THAT, STARTING WITH THE, THE SHADE OF THE REPORT OR THE BOX OF THE REPORT THAT'S SHADED IN RED.
THAT IS GONNA GIVE YOU A QUICK SUMMARY AT A VERY HIGH LEVEL OF THE COSTS AND THE BENEFITS ASSOCIATED WITH A PARTICULAR PROJECT.
THIS BOTTOM PART PROVIDES A GRAPH, A VERY SIMPLE GRAPH TO SHOW THOSE, UM, COSTS AND BENEFITS, UM, THE INCENTIVE ITSELF OVER THE TERM OF THE AGREEMENT.
THIS SECTION OVER HERE ACTUALLY STARTS PROVIDING A LITTLE BIT OF AN ECONOMIC IMPACT.
IT STARTS SHOWING SPINOFF JOBS AND SPINOFF SALARIES ASSOCIATED WITH THE POTENTIAL PROJECT.
[01:10:01]
SECTION, YOU'RE GONNA SEE THE BREAKDOWN, THE ACTUAL LINE ITEM VALUES OF THE DIFFERENT COSTS AND BENEFITS ASSOCIATED.AND THEN OVER ON THIS RIGHT HAND SIDE, YOU SEE THE RATE OF RETURN AND THE PAYBACK PERIOD.
SO YOU CAN CLEARLY SEE WHERE THE BREAK EVEN POINT IS FOR A PARTICULAR PROJECT.
AND THEN LASTLY, IT ALSO WILL SHOW THE BENEFITS TO OTHER TAXING ENTITIES AS WELL.
THESE REPORTS WILL BE USED, UM, TO ASSIST STAFF IN CITY COUNCIL BRIEFINGS AND ALSO TO IMPROVE TRANSPARENCY WITH THE PUBLIC.
IT'S A LOT EASIER TO UNDERSTAND ONCE THIS, THE WAY THAT THIS REPORT IS GENERATED INTO ONE PAGE.
THERE'S ALSO A VERY SUBSTANTIAL, UM, REPORT.
THIS IS JUST A ONE PAGE SUMMARY.
THERE'S ALSO A VERY SUBSTANTIAL REPORT THAT GETS GENERATED FOR EACH OF THESE PROJECTS.
UM, ONE OF THE ADDITIONAL BENEFITS WITH THE TOOL IS THE ABILITY TO MODEL VARIOUS SCENARIOS.
SO AS WE'RE WORKING THROUGH PROJECTS, WE WILL OFTENTIMES WANT TO CALCULATE PERHAPS A LOWER ABATEMENT VALUE OR A LOWER TERM VALUE OR MAYBE, UM, A LOWER GRANT AMOUNT.
WE, RIGHT NOW, IT, IT'S A LITTLE BIT MORE CUMBERSOME FOR US TO DO THAT, AND WE TECHNICALLY HAVE TO SAVE THAT EXCEL SPREADSHEET ALL THOSE DIFFERENT TIMES FOR EVERY, EVERY MODEL WE'RE RUNNING WITH THIS SYSTEM, WE CAN ACTUALLY DO THE DIFFERENT SCENARIOS AND THEN BE ABLE TO COMPARE THEM A LOT EASIER.
AS FAR AS NEXT STEPS, WE HAVE PURCHASED AN ANNUAL SUBSCRIPTION TO IMPACT DASHBOARD.
UM, WE DID THAT EARLIER THIS YEAR, AND THE COST OF THAT IS, UH, IS $7,500.
UM, WE'VE STARTED RUNNING TEST PROJECTS THROUGH THE SYSTEM ALREADY.
UM, BUT WE'RE STILL PROPOSING, AND WE'RE STILL PHASING IN THIS, IM THE IMPLEMENTATION OF THIS NEW TOOL TO START OUT.
WE'LL USE THE SAME COSTS AND REVENUES THAT WE USE IN OUR CURRENT MODEL, WHICH ARE WHAT'S HIGHLIGHTED IN GREEN IN, IN ON YOUR SCREEN.
WE WILL ALSO ADD THE COSTS OF GOVERNMENT SERVICES, WHICH ARE HIGHLIGHTED IN THE BLUE BOX.
UM, THIS CALCULATION WILL BE LIMITED TO, UM, T C I FIRE AND POLICE, WHICH ARE THE DEPARTMENTS THAT ARE MOST SENSITIVE TO FLUCTUATIONS IN POPULATION AND BUSINESS NEEDS.
UM, ADDITIONAL CONSIDERATIONS WILL BE ADDED AS DEPARTMENTS GATHER DATA FROM PAST AND FUTURE PROJECTS.
SO THERE'S A LOT OF MODELING THAT GOES INTO DEVELOPING SOME OF THOSE CALCULATIONS.
AND WHAT WE WANNA DO IS SPEND A LITTLE BIT MORE TIME GATHERING DATA ABOUT HOW SOME OF THESE COSTS ARE ACTUALLY IMPACTING, UM, OR HOW OUR PROJECTS ARE IMPACTING SOME OF THESE COSTS SO WE CAN BE AS PRECISE AS POSSIBLE.
UM, BEFORE WE START ADDING THAT INTO OUR COST BENEFIT ANALYSIS.
WE'LL CONTINUE TO USE IMPACT DASHBOARD THROUGHOUT, UM, THIS FISCAL YEAR.
UM, AND AT THE END OF THE YEAR WE'RE GONNA REEVALUATE TO SEE IF, IF IT'S REALLY EASIER, IF IT'S REALLY MADE, MADE THE SYSTEM, OR IF IT'S REALLY MADE OUR PROCESS A LITTLE BIT, UM, MORE STREAMLINED, UM, AND THEN DETERMINE WHETHER WE WANNA MOVE FORWARD WITH IT.
RIGHT NOW IT'S ANNUAL CONTRACTS WE HAVE TO RENEW EVERY YEAR IF WE WANNA KEEP IT.
AND THAT CONCLUDES MY PRESENTATION.
ANY QUESTIONS FROM MY COLLEAGUES? COUNCIL MEMBER BELI, THIS IS BRILLIANT.
HOW MUCH ARE WE PAYING? 7,500? LIKE THIS IS THE BEST $7,500 PRESENTATION I'VE WE'VE EVER GOTTEN.
AND SERIOUSLY, YOU KNOW, ONE OF THE THINGS THAT FRUSTRATES ME AND UM, AND, AND I IMAGINE IT FRUSTRATES OTHER CITY COUNCIL MEMBERS IS THAT WE KIND OF HAVE TO TAKE YOUR WORD FOR IT WHENEVER YOU PRESENT THESE DEALS TO US, RIGHT? AND YOU'LL SAY, YOU KNOW, THIS IS THE NUMBER OF JOBS, THIS IS WHAT THE INCENTIVES ARE LONG TERM, THIS IS WHAT THE NET BENEFIT TO THE CITY IS.
BUT YOU KNOW, THERE'S NOTHING LIKE ACTUALLY HOLDING SOMETHING IN NATURAL PLAIN ENGLISH, RIGHT? UH, AND REALLY SEEING SORT OF THE, YOU PROVING YOUR WORK, RIGHT? UM, THAT'S WHAT I REALLY LIKE ABOUT IT.
THE OTHER THING I REALLY LIKE ABOUT IT IS THAT YOU'RE ABLE TO, FROM WHAT I UNDERSTAND RIGHT, YOU'RE ABLE TO SORT OF RUN MULTIPLE PERMUTATIONS OF A SCENARIO DEAL, RIGHT? RIGHT.
OH, YOU KNOW, AND SO YOU CHANGE THIS FACTOR AND THIS IS WHERE, YOU KNOW, THE, THE REST OF THE DEAL CHANGES, RIGHT? I REALLY DIG THAT.
RIGHT? UM, MY CHALLENGE FOR YOU, AND, AND I HOPE YOU ACCEPT THE CHALLENGE, IS THAT WE NOT JUST PUT IN, YOU KNOW, HYPOTHETICAL DEALS TO SEE WHAT IT WOULD LOOK LIKE, BUT THEN WE RUN SOME QUALITY CONTROL ON PAST DEALS AND SEE IF WE WERE RIGHT WHEN WE SAID, THIS IS THE NET BENEFIT TO THE CITY, RIGHT? AND SEE IF THIS SOFTWARE SPITS BACK, YOU KNOW, WHAT DOES THE STARBRITE AGREEMENT SAY ABOUT THIS? YOU KNOW, WHAT DOES PROJECT BARBECUE LOOK LIKE? RIGHT? OR WHATEVER THE HECK THESE PROJECT SILLY NAMES ARE.
UM, THE, YOU UNDERSTAND WHAT I'M SAYING? YES.
'CAUSE AND IT MIGHT BE SCARY, RIGHT? 'CAUSE IT MIGHT RETURN INFORMATION LIKE, UH, WE MISSED THE MARK HERE, RIGHT? WE, OR WE WEREN'T CALCULATING NET
[01:15:01]
BENE, WE WERE TOO CONSERVATIVE WITHIN NET BENEFITS.RIGHT? OR, AND MAYBE EVEN THIS WILL ALLOW US TO FIGURE OUT IF WE'RE LEAVING ANY MONEY ON THE TABLE AFTER A FEW YEARS ON THESE INCENTIVE DEALS, RIGHT? ANYWAY, I LOVE IT.
I KNOW THAT, UH, YOU AND I HAVE TALKED ABOUT THIS AND WE'VE RELIED ON, ON THE SYSTEM THAT YOU HAVE IN PLACE, AND I KNOW DR.
NEVIN HAS HAD A LOT TO DO WITH THAT DEVELOPMENT.
AND, YOU KNOW, I THINK IT WOULD BE WISE TO MAYBE DO BOTH FOR THE NEXT COUPLE OF OR HALF A DOZEN PROJECTS, UH, YOU KNOW, HAVE THEM WORK, HAVE THEM DONE INDEPENDENTLY, BUT BRING 'EM TOGETHER.
SO, YOU KNOW, WE CAN KIND OF SEE ALONG THE LINES OF WHAT YOU'VE SAID, HOW IT'S BEEN WORKING IN THE PAST, AND HOW IT'LL WORK IN THE FUTURE.
UH, BUT I THINK FOR $7,500 THAT, THAT'S A GOOD DEAL.
AND, UH, JUST CONGRATULATIONS ON MAKING THAT DECISION.
THANK YOU VERY MUCH, UH, FOR THIS UPDATE ON, ON THIS VERY SIMPLE, UH, TOOL.
GLAD WE HAVE IT RIGHT NOW, AND, UM, MOVING FORWARD.
AND JUST SO THAT WE CAN ALSO MAKE THE CHANGES TO SAY, OKAY, IF THIS IS HOW MUCH WE'RE, ARE WE OFF, WE CAN EVEN SAY, ARE WE OFFERING TOO MUCH HERE ON THIS WHOLE THING? AND I THINK THAT'S GOING TO BE SOMETHING FOR US AS WELL TO SAY, WHAT IF IT'S NOT AT A HUNDRED PERCENT? WHAT IF IT'S AT THIS? WHAT IF THE WAGES GO UP FOR THIS MUCH, UH, THIS MUCH MONEY, THEN THIS.
I THINK THIS IS A GREAT WAY FOR US TO LOOK AT IT IN A, IN A MORE EFFICIENT AND, UH, RAPID WAY FOR A TURNAROUND.
THAT WAS THE LAST ITEM ON OUR, UM, AGENDA ITEM.
AND I DO WANNA SAY THAT, UM, WE'VE BEEN TALKING A LOT ABOUT DIFFERENT THINGS THAT HAVE BEEN HAPPENING.
I KNOW IN SOME MEETINGS WE'VE HAD, WE'VE HAD CONVERSATIONS WE'RE GONNA BE LOOKING AT POSSIBLY COMING UP, UM, IN THESE NEXT COUPLE OF MONTHS ABOUT JUST DIFFERENT POLICY DECISIONS OR POLICY CONVERSATIONS THAT WE'VE HAD.
AND WE'RE GOING TO BE LOOKING AT THEM WHEN IT COMES TO THE, IT COMES TO THE GENDER PAY EQUITY WHEN WE'RE LOOKING AT, UM, WHEN WE'RE LOOKING AT TAX ABATEMENTS AND WHAT, HOW THIS IS WORKING HERE.
AND THEN ONE OF THE THINGS THAT I'M LOOKING FORWARD TO, COUNCIL MEMBER GONZALEZ, IS, UM, HAVING A CONVERSATION HERE WHEN IT COMES TO THE, UM, THE POVERTY REPORT THAT WILL BE PRESENTED.
AND HOPEFULLY WE CAN SEE THAT AND HAVE A CONVERSATION ABOUT THAT AND WHAT WE CAN DO, UM, HERE AT THE CITY AND IN THIS COMMITTEE IN PARTICULAR.
SO WITH THAT, THANK YOU ALL SO MUCH, UH, FOR BEING HERE.