[ CALL TO ORDER: Mayor Bill Wells]
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LADIES AND LADIES AND GENTLEMEN, WELCOME TO THE EL CAJON CITY COUNCIL MEETING.THE MEETING IS NOW CALLED TO ORDER, AND I'D LIKE TO ASK THE CITY CLERK TO PLEASE CALL THE ROLE ALL COUNCIL MEMBERS ARE PRESENT.
UM, WE'RE GOING TO DO THE PLEDGE OF ALLEGIANCE NOW, BUT I'D LIKE TO INVITE WESLEY ORTIZ UP.
WESLEY, COULD YOU COME UP AND HELP US WITH THIS? SOMEBODY HELP HIM WITH THE DOOR.
WESLEY'S GOING TO LEAD US IN THE PLEDGE OF ALLEGIANCE.
SO WOULD YOU ALL STAND, COME UP, WESLEY, FIRST OFF, TELL 'EM WHO YOU ARE AND WHAT GRADE YOU'RE IN.
I'M WESLEY ORTIZ AND I AND I, UM, AM GOING INTO SECOND GRADE.
YOU KNOW SOMEBODY UP HERE? UM, DADDY.
I PLEDGE ALLEGIANCE, FLAG OF THE UNITED STATES OF AMERICA AND TWO REPUBLIC FOR WHAT IT STANDS.
ONE NATION UNDERGONE INDIVISIBLE WAS LIBERTY AND JUSTICE FOR ALL.
[ POSTINGS: The City Clerk posted Orders of Adjournment of the June 25, 2024, Meeting and the Agenda of the July 9, 2024, Meeting in accordance to State Law and City Council/Housing Authority/Successor Agency to the Redevelopment Agency Policy.]
CITY CLERK POSTED ORDERS OF ADJOURNMENT OF THE JUNE 25TH, 2024 MEETING AND THE AGENDA OF THE JULY 9TH, 2024 MEETING.IN ACCORDANCE WITH STATE LAW CITY COUNCIL ON HOUSING AUTHORITY POLICY,
[ PRESENTATIONS: Proclamation: Parks & Recreation Month]
WE HAVE ONE PROCLAMATION ONTO TODAY'S AGENDA.I'D LIKE TO INVITE THE PARKS OF RECREATION STAFF TO THE PODIUM TO ACCEPT THEIR PROCLAMATION, WHICH I WILL READ.
WHEREAS JULY IS NATIONAL PARKS AND RECREATION MONTH.
PARKS AND RECREATION MAKES LIVES AND COMMUNITIES BETTER, NOT ONLY IN JULY, BUT ALL YEAR LONG.
PARKS AND RECREATION PROGRAMS BUILD HEALTHY, ACTIVE COMMUNITIES THAT AID IN THE PREVENTION OF CHRONIC DISEASE, PROVIDE INCLUSION, RECREATION SERVICES FOR THOSE WHO ARE MENTALLY OR PHYSICALLY DISABLED, AND ALSO IMPROVE THE MENTAL AND EMOTIONAL HEALTH OF ALL RESIDENTS.
THE PARKS AND RECREATION DEPARTMENT CALLS UPON ALL OF EL CAJON RESIDENTS TO FULLY UTILIZE AND ENJOY THEIR PARK TRAILS AND OPEN SPACE, NOT TO MENTION THE OTHER FACILITIES AND RECREATION OPPORTUNITIES.
WHEREAS EACH MONTH, OVER A HUNDRED THOUSAND PATRONS VISIT OUR LOCAL PARKS, THE RECREATION FACILITIES IN EL CAJON.
OUR PARKS TEAM ASSURES A CLEAN, BEAUTIFUL, AND SAFE SETTING FOR YOU AND YOUR FAMILY TO ENJOY THE RECREATION STAFF IS COMMITTED TO DELIVER ON THEIR PROMISE, TO DEVELOP YOUTH SUPPORT FAMILIES, AND PROVIDE SAFE PLACES.
PARKS AND RECREATION PROGRAMS INCREASE THE COMMUNITIES' ECONOMIC PROSPERITY THROUGH INCREASED PROPERTY VALUES, EXPANSION OF THE LOCAL TAX BASE, INCREASED TOURISM, THE ATTRACTION AND RETENTION OF BUSINESSES AND CRIME REDUCTION.
AND WHEREAS IN CELEBRATION OF PARKS AND RECREATION MONTH, WE INVITE YOU TO JOIN THE CITY OF EL CAJON.
IN OBSERVANCE OF JULY IS PARKS AND RECREATION MONTH BY VISITING A LOCAL PARK OR PARTICIPATING IN ONE OF OUR OUTSTANDING PROGRAMS THIS YEAR, THE NATIONAL RECREATION AND PARKS ASSOCIATION THEME WHERE YOU BELONG CELEBRATES THE MANY WAYS PARKS AND RECREATION PROFESSIONALS ACROSS THE COUNTRY FOSTER A SENSE OF BELONGING IN THEIR COMMUNITY, BUT PROVIDING WELCOMING AND INCLUSIVE PROGRAMS, ESSENTIAL SERVICES FOR ALL AGES AND ABILITIES AND SAFE ACCESSIBLE SPACES TO BUILD MEANINGFUL CONNECTIONS.
NOW THEREFORE, I BILL WELLS, THE MAYOR OF THE CITY OF EL CAJON, TOGETHER WITH THE CITY COUNCIL DO HEREBY PROCLAIM THIS MONTH OF JULY, 2024 TO BE PARKS AND RECREATION MONTH IN THE CITY OF EL CAJON.
SIGNED THIS NINTH DAY OF JULY, 2024.
ALRIGHT, AND MR. FRANK CARSON IS THEIR FEARLESS LEADER AND BE BEFORE MR. UH, THEIR FEARLESS LEADER, MR. CARSON SPEAKS.
I JUST WANNA LET EVERYONE KNOW, THE COUNCIL KNOW IN THE, AND OUR PUBLIC KNOW THAT, UH, MR. CARSON'S LAST DAY WITH THE CITY OF EL CAJON IS TOMORROW.
SO THIS IS HIS LAST OFFICIAL CITY COUNCIL MEETING WITH THE CITY OF, OF EL CAJON.
AND I JUST WANTED TO PERSONALLY THANK HIM ON BEHALF OF THE ENTIRE CITY STAFF, HOW APPRECIATIVE WE ARE OF HIM.
ONE OF MY FAVORITE THINGS TO DO IS GO TO HE, HE ORGANIZES AN AN ALL DAY SATURDAY TRAINING FOR ALL THE PART-TIME REC LEADERS.
AND IT'S SO COOL TO SEE BESIDES THE AMAZING RECREATION THAT OCCURS IN OUR COMMUNITY, JUST THE LEADERSHIP
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DEVELOPMENT THAT OCCURS FOR ALL THESE PART-TIME EMPLOYEES, MANY OF WHICH ARE, UH, RESIDENTS OF ELON.SO IT'S PRETTY COOL OF THE PROGRAM THAT HE'S ESTABLISHED IN THEIR CITY AND WE'RE LUCKY TO HAVE, HAVE, HAVE HAD HIM.
UH, THANK YOU CITY MANAGER AND MAYOR COUNCIL, UH, FITTING ALONG THE NATIONAL RECREATION PARK ASSOCIATION THEME THIS YEAR WHERE YOU BELONG.
THIS IS NEARLY THE 40TH YEAR OF PARKS AND RECREATION MONTH AND PARK AND RECREATION PROFESSIONALS FOSTER BELONGING IN THEIR COMMUNITIES.
AND THAT'S MORE TELLING THAN FOUR YEARS AGO WHEN WE HAD IT WITH DURING COVID WHERE WE REINVENTED OURSELVES AND CREATED DIFFERENT WAYS TO CONNECT WITH OUR COMMUNITY, BRINGING PARKS TO THE PEOPLE.
UH, WE ALSO PROVIDE, I DON'T KNOW IF YOU KNOW, BUT WE HAVE INCLUSION AIDS.
SO WE HAVE INCLUSION SERVICES.
SO SOMEONE THAT MAY NEED, UH, A ONE-ON-ONE EIGHT TO TAKE A SWIM CLASS, A DAY CAMP A DANCE CLASS, THEY CAN REQUEST THAT AND THERE IS AN ASSESSMENT DONE.
THEY MAY HAVE A DIAGNOSIS WHERE THEY ARE MODERATE FUNCTIONING WITH AUTISM, AND WE WILL PROVIDE A ONE-ON-ONE TRAINED AID FOR THAT, THAT INDIVIDUAL BY FEDERAL LAW, WE ARE REQUIRED TO DO, MAKE THAT REASONABLE ACCOMMODATION.
WE PROVIDE THOSE TYPE OF SERVICES.
UH, WE OFFER A WIDE RANGE OF PROGRAMMING FOR ALL AGES, FROM PICKLEBALL TO PRESCHOOL DANCE.
UH, WE HAVE RENTING GROUPS SUCH AS TOPS ARE TAKEN OFF THE POUND SENSIBLY.
UH, BEYOND THAT, MOST IMPORTANTLY IS WE HAVE CRITICAL HOURS OF SERVICE, AND THAT'S THREE TO 7:00 PM MONDAY THROUGH FRIDAY, WHERE THOSE ARE DIVERSIONARY ACTIVITIES WHERE IT'S A CRIME REDUCTION, UH, OFFERING DAY CAMPS AND SWIM LESSONS ARE ALL PART OF SOCIALIZATION, BUT ALSO LEARNING HOW TO WORK WITHIN A COMMUNITY.
UH, WE HAVE A VERY UNIQUE DANCE TUMBLING CHEER AND GYMNASTICS WHERE IT'S TAUGHT ALL BY CITY STAFF.
WE'RE THE LAST CITY WHERE WE CAN HAVE THAT, WHERE IT'S ALL TAUGHT BY CITY STAFF.
AND THAT'S AN AMAZING FEAT FOR THE CITY TO OFFER YOUTH SPORTS TO OUR VETERANS COALITION, TO OUR MAIN STREET FLAG PROGRAM THAT WE ALSO SUPPORT, UH, TO CITYWIDE SPECIAL EVENTS THAT WE ALL PROVIDE SERVICES TO CITYWIDE.
WE ARE GRATEFUL TO BE ABLE TO PROVIDE THESE SERVICES TO THE PUBLIC, AND IT IS OUR HONOR TO SERVE THIS CITY.
UM, I HAVE A FEELING SOME PEOPLE WANNA SAY A FEW THINGS.
ANYBODY LIKE TO SAY ANYTHING? OH, YOU KNOW, YOU REALLY MADE OUR PARKS AND REC A, A STATEWIDE AWARD-WINNING DEPARTMENT AND, AND YOUR LEADERSHIP AND YOUR AWARD-WINNING YOUR CREATIVITY FOR THE EVENTS IN THE, IN THE CITY.
UH, THE CITY THAT'S GETTING YOU IS GETTING QUITE A PRIZE.
WE'LL, WE'LL BEAT A DEAD HORSE HERE.
WE CAN'T THANK YOU ENOUGH FOR YOUR ABOVE AND BEYOND DEDICATION TO THE CITIZENS OF, OF EL CAJON.
AND, AND, UH, WE KNOW YOU PUT YOUR BEST FOOT FORWARD EVERY SINGLE TIME AND YOU THINK OUTSIDE OF THE BOX, AS ONE OF MY COLLEAGUES HERE SAID.
AND, UM, WE'RE GONNA NEED MORE WALL SPACE IF WE KEPT YOU FOR ALL THE AWARDS YOU GET
YOU BROUGHT, UM, MANY TO THE CITY AND I'M SURE, UM, FROM, UH, THE TOP DOWN, EVERYBODY IN THAT DEPARTMENT'S GONNA MISS YOU.
BUT YOU'VE DEFINITELY MADE A, A STAMP ON THIS CITY AND, AND YOU HAVE SOME BIG SHOES TO FILL.
SO, UM, BEST OF LUCK DOWN IN CHULA VISTA AND, UH, WE WISH YOU THE BEST.
FRANK, THANK YOU SO MUCH FOR ALL YOU'VE DONE.
I MEAN, YOU'VE JUST BEEN A REAL WORKHORSE AND, UH, THANK YOU FOR KEEPING ALL THE KIDS OUT OF TROUBLE.
'CAUSE THAT'S A BIG PART OF WHAT THE REC DEPARTMENT DOES, AND I CERTAINLY APPRECIATE IT.
EVERYTHING THAT THEY SAID,
UM, NO, FRANK, YOU'VE DONE A WONDERFUL JOB.
UH, YOU'VE REALLY HELPED ME THESE LAST, UH, ALMOST FOUR YEARS AND GIVING ME POINTERS AND HAVE BEEN MY POINT OF CONTACT, AND I REALLY APPRECIATE THAT.
AND I THINK YOU'RE GONNA DO WELL IN YOUR NEW NEXT ADVENTURE.
AND I'M SURE THAT WE'LL HAVE SOMEONE YOU'VE, THEY'VE GOT BIG SHOES TO FILL.
UM, SO THANK YOU VERY MUCH FOR YOUR SERVICE TO THE CITY AND WE APPRECIATE YOU VERY MUCH.
WELL, FRANK, I KNEW THIS DAY WOULD COME A LONG TIME AGO.
UM, IT'S REALLY HARD TO, IT'S REALLY HARD TO SAY HOW MUCH I'VE APPRECIATED YOU PERSONALLY.
UM, YOU'RE VERY WELL RESPECTED AMONGST EVERYBODY.
YOU'VE BROUGHT SO MUCH TO THE CITY.
I COULD LIST ALL YOUR ACCOMPLISHMENTS, BUT, YOU KNOW, H FEST AMERICA ON MAIN STREET, JUST SOME OF THE SMALL THINGS THAT YOU'VE DONE IN ADDITION TO YOUR REGULAR DUTIES OF RUNNING THE, THE FINEST PARKS AND RECS DEPARTMENT THAT I KNOW OF IN THIS TOWN.
UM, WE'RE GONNA MISS YOU, BUT IT'S ALWAYS HAPPY TO SEE SOMEBODY MOVING ON TO BIGGER AND BETTER THINGS.
I'M NOT SURPRISED THAN THE LEAST.
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I JUST WANT TO TELL YOU THAT WE APPRECIATE EVERY MOMENT THAT YOU'VE BEEN HERE, AND WE WILL LONG REMEMBER THE WORK YOU'VE DONE HERE, AND WE THANK YOU SO MUCH AND I'D LIKE TO GIVE YOU A BIG ROUND OF APPLAUSE.AND I, I I JUST WANNA SAY THE, THE DEPARTMENT IS SET UP FOR SUCCESS.
UH, THERE ARE MANY, MANY STRONG LEADERS IN THE DEPARTMENT, SO IT, IT SHOULD BE AS SEAMLESS IN TERMS OF LEADERSHIP THERE.
ALRIGHT, AGENDA CHANGES, UH, STAFF, DO YOU HAVE ANY AGENDA CHANGES? NO, SIR.
[7. CONSENT ITEMS: Consent Items are routine matters enacted by one motion according to the RECOMMENDATION listed below. With the concurrence of the City Council, a Council Member or person in attendance may request discussion of a Consent Item at this time.]
WE'RE NOW CONSENT ITEMS. CONSENT ITEMS ARE ROUTINE MATTERS ENACTED BY ONE MOTION ACCORDING TO THE RECOMMENDATION LISTED BELOW WITH THE CONCURRENCE OF THE CITY COUNCIL.A COUNCIL MEMBER OR PERSON IN ATTENDANCE MAY REQUEST DISCUSSION OF A CONSENT ITEM AT THIS TIME.
COUNCIL MEMBERS, DO YOU WISH TO PULL ANY OF THE CONSENT ITEMS? STAFF? NO.
ANGELA, DO WE HAVE ANY SPEAKER CARDS FOR CONSENT ITEMS? NO SPEAKER CARDS, SIR.
I'D LIKE TO MAKE A MOTION THEN TO APPROVE THE CONSENT ITEMS. SECOND, PLEASE VOTE.
MOTION CARRIES BY UNANIMOUS VOTE.
[ PUBLIC COMMENT: At this time, any person may address a matter within the jurisdiction of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency that is not on the Agenda. Comments relating to items on today’s docket are to be taken at the time the item is heard. State law prohibits discussion or action on items not on the Agenda; however, Council, Authority and Agency Members may briefly respond to statements or questions. An item may be placed on a future Agenda.]
US DOWN TO PUBLIC COMMENT.AT THIS TIME, ANY PERSON MAY ADDRESS A MATTER WITHIN THE JURISDICTION OF THE CITY COUNCIL HOUSING AUTHORITY SUCCESSOR AGENCY TO THE EL CAJON REDEVELOPMENT AGENCY THAT IS NOT ON THE AGENDA.
COMMENTS RELATING TO ITEMS ON TODAY'S AGENDA ARE TO BE TAKEN AT THE TIME THAT THE ITEM IS HEARD.
STATE LAW PROHIBITS DISCUSSION OR ACTION ON ITEMS NOT ON THE AGENDA.
HOWEVER, CITY COUNCIL AND HOUSING AUTHORITY MEMBERS MAY BRIEFLY RESPOND TO STATEMENTS OR QUESTIONS, AND AN ITEM MAY BE PLACED ON A FUTURE AGENDA.
ANGELA, DO WE HAVE ANY SPEAKER CARDS FOR PUBLIC COMMENT? YES, SIR.
THE FIRST ONE IS BILLY SANTER.
I WANT TO INTRODUCE JULIE GOBEL.
UH, JULIE LIVES IN EL CAJON WITH HER FAMILY.
HER DAUGHTERS HAVE ATTENDED SCHOOL AT FIALA AND SHE HAS BEEN WAITING FOR THIS POSITION FOR THE TIME THAT HER GIRLS GRADUATED AND MOVED ON FROM THE PROGRAM.
AS A MATTER OF FACT, THEY'RE BOTH IN COLLEGE NOW.
BUT I'M HERE TO INTRODUCE JULIE.
AND IN THE FUTURE, JULIE WILL BE ATTENDING THE MEETINGS REGARDING MS. EL CAJONS ACTIVITIES.
JULIE HAS SHARED WITH ME, THE GIRLS ARE GOING TO BE TAKING PART IN THE, UH, DOG DAYS OF SUMMER EVENT THAT'S COMING UP THIS SATURDAY.
THEY WILL BE TAKING PART IN AS MANY OPPORTUNITIES THAT PRESENT THEMSELVES WITHIN THE CITY.
THEY WERE JUST CROWNED JUNE 29TH.
SO I'LL LET JULIE SAY A FEW WORDS BEFORE YOU LEAVE THOUGH.
DOES THAT MEAN YOU'RE STEPPING DOWN FROM THIS POSITION? FROM THIS POSITION? YES.
HOW LONG HAVE YOU DONE THIS? WELL, THE PAGEANT IN EL CAJON HAS BEEN IN EXISTENCE FOR 61 YEARS.
I HAVE BEEN INVOLVED WITH IT FOR 20 YEARS.
AND WELL, FIRST OFF, THANK YOU SO MUCH FOR ALL YOUR DONE.
THANK YOU EVERYBODY FOR HAVING US.
UM, I WOULDN'T HAVE THIS POSITION WITHOUT BILLY AND, UM, THE MISS EL CAJON PROGRAM AND, UH, MAYOR BILL WELLS, YOU, BOTH MY DAUGHTERS WERE ALSO MISS EL CAJON TITLE HOLDERS.
AND YOU WELCOMED US SO MUCH INTO THE COMMUNITY.
AND I'VE, SINCE MY DAUGHTERS WERE PART OF THE MISS EL CAJON PAGEANT, I COULD REALLY NEVER HAVE THIS POSITION.
BUT NOW THAT SHE SAID THAT MY DAUGHTERS HAVE MOVED ON AND NOW THEY'RE IN COLLEGE, UM, I'M ABLE TO TAKE IT OVER, UM, FOR MS. BILLY.
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I JUST WANNA THANK YOU AND, UM, MR. GOBEL, UM, I, I DON'T THINK WE'RE RELATED, BUT, UM, I'VE ALL MY, I ASKED MY DAD, I DON'T THINK WE'RE RELATED, BUT, UM, IT'S, IT'S UNUSUAL TO HAVE LIKE THE, THE NAME GOBEL SPELT THE WAY IT IS, BUT MY NAME IS S SPELLED EXACTLY THE SAME WAY, SO IT'S JULIE GOBEL.SO, BUT I DON'T THINK WE'RE RELATED, SO, BUT IT'S JUST COINCIDENCE.
UM, BUT I LIKE TO INTRODUCE YOU GUYS, UM, TO THE TWO LOVELY LADIES HERE TO MY LEFT.
UM, AND THEY'RE GONNA JUST SHARE WITH YOU THEIR, UM, THEIR INFORMATION AND, UH, WHAT THEY LOVE ABOUT EL CAJON.
SO IF WE COULD, UM, TALK TO BOTH OF THEM REAL QUICK.
I'M SERENITY KENNEL AND I'M YOUR CURRENT JUNIOR TEAM, MISS EL CAJON.
I AM VERY EXCITED FOR THE UPCOMING CONCERTS IN THE PARK.
THEY'RE VERY SENTIMENTAL FOR ME AND I KNOW THEY'RE VERY HIGHLY ANTICIPATED.
MY FAVORITE THING ABOUT EL CAJON IS THE DIVERSITY WITHIN IT.
I THINK IT'S BEAUTIFUL TO SEE A COHERENT COMMUNITY COME TOGETHER WITH THE MULTITUDE OF DIFFERENT PEOPLE FROM AROUND THE WORLD.
HI, MY NAME IS KATIE RENO AND I'M REALLY EXCITED ABOUT ALL THE EVENTS COMING UP, THE CONCERTS AT THE PARK AND THE DOG DAYS OF SUMMER.
AND I REALLY LOVE HOW EL CAJON HAS ALL THESE EVENTS THAT YOU CAN GO TO AND REALLY BOND AS A COMMUNITY.
BLINKING A PICTURE WITH THE BEAR AND THE COUNTS.
YOU HAVE YOUR, I YOU SHOULD BE IN THIS AS WELL.
DO YOU WANT ME TO DO IT? SOMEBODY? WE, WE'LL HAVE SOMEBODY, THEY'RE GONNA HAVE SOMEBODY TAKE IT WITH YOUR, WITH YOURS, THE PHOTO.
WE'LL HAVE SOMEBODY FROM OUR TEAM TAKE THE PICTURE.
OUR LAST SPEAKER IS BRENDA HAMMOND.
UM, I JUST WANTED TO SAY THANK YOU SO MUCH FOR HAVING THE CONCERTS AND ALL THE FUN AND EL CAJON AND, UM, I LOVE HOW, I LOVE HOW THE, THE PEOPLE THAT GREW UP HERE IN EL CAJON LOVE THE CONCERTS TOO.
AND I'M SURE IF THEY WERE IN ANOTHER CITY, THEY WOULD'VE RAN AWAY TO EL CAJON LIKE I DID.
[12. City of El Cajon Annual Sewer Charges Report for Fiscal Year 2024-2025 RECOMMENDATION: That the City Council: Opens the Public Hearing and receives testimony; Closes the Public Hearing; Determines if a majority protest has been received; and (if not) Adopts the next Resolution, in order, to: Determine the lack of majority protest; Overrule objections to the report; Accept the City of El Cajon Annual Sewer Charges Fiscal Year 2024-2025 Report; Accept Appendix B, which identifies by parcel number, each parcel of real property receiving sewer services, and the amount of sewer charges for each parcel for Fiscal Year 2024-2025 at the currently adopted rates, as required by the California Health and Safety Code section 5473, et seq., pertaining to collection of sewer charges on the tax roll; Direct the City Clerk to file the reports with the San Diego County Auditor; and Direct the Finance Department to file a certification of the sewer service charges with the San Diego County Auditor.]
UH, WE'RE NOW AT PUBLIC HEARINGS.WE HAVE TWO ITEMS TO CONSIDER.
ITEM 12 IS FOR THE ANNUAL SEWER CHARGE REPORT.
I'LL ASK STAFF TO INTRODUCE THIS ITEM.
GOOD AFTERNOON, HONORABLE MAYOR AND COUNCIL MEMBERS.
I'M BLAKE BARRINGER, UM, WITH THE, UH, NEWLY REORGANIZED ENGINEERING SERVICES WASTEWATER DIVISION.
SO FOR THE ANNUAL SEWER CHARGES WE'VE BEEN COLLECTING ON THE PROPERTY TAX INVOICE SINCE 2020 NOW, UM, UH, PROVIDED TO YOU TODAY, IN ADDITION TO THE ENGINEER'S REPORT THAT WAS BEFORE, IS APPENDIX C THAT'S AVAILABLE TO YOU.
THAT IS JUST THE SEVEN PARCELS THAT WE GOT, UM, CLAIMS FROM PROPERTY OWNERS, UH, BASED ON LEAKS OR OTHER REASONS THAT CAUSED US TO, UH, GRANT A REDUCTION TO THE ORIGINALLY LISTED, UM, PARCEL CHARGES.
[00:20:02]
UM, HIGHLIGHTS FOR THIS YEAR, UH, THE RATES, THE SEWER RATES HAVE NOT CHANGED FROM LAST YEAR.OUR, UH, APPROVED RATE SCHEDULE, UH, ENDED LAST YEAR.
REVENUE IS DOWN BY JUST UNDER 1%, UH, DUE TO WATER REDUCTION, UH, MOSTLY WITH MULTIFAMILY PROPERTIES, BUT, UH, WE HAVE VERY HEALTHY RESERVES.
UH, WE, AS PART OF OUR RATE STUDY, UM, OUTLINED THE WAY TO BUILD UP OUR RESERVES AND HAVE AT LEAST $5 MILLION, UM, ABOVE THE OPERATING EXPENSES FROM YEAR TO YEAR.
AND WE ARE STILL MEETING THAT, UH, THESE RESERVES ARE PLANNED FOR ANYTHING THAT'S UNPLANNED AS WELL AS, UM, CASH FLOW STABILITY.
UH, ONE OF THE THINGS THAT WAS NOT SPECIFICALLY PLANNED FOR WAS OUR GRAVE SEWER EMERGENCY PROJECT THAT'S STILL ONGOING.
UM, THIS RESERVE IS ALSO TO HELP FIGHT ANY INFLATIONS IN OUR COSTS, UH, GOING FORWARD.
UH, PLUS WE HAVE COSTS COMING UP ASSOCIATED WITH THE ADVANCED WATER PURIFICATION PROJECT IN EAST COUNTY, UH, AS WELL AS SOME COSTS WITH METRO WASTEWATER.
UH, WE DO PLAN TO HAVE A UPDATED SEWER MASTER PLAN THIS YEAR TO OUTLINE OUR FUTURE, UH, CAPITAL IMPROVEMENT NEEDS.
UM, SO THAT'LL HELP US REASSESS WHERE WE ARE WITH OUR SYSTEM AND PLAN FOR ANY REPAIRS REPLACEMENT IN THE FUTURE.
UH, BUT WE DEFINITELY HAVE THE HEALTHY RESERVES FOR THAT FUTURE PROJECTS.
UM, AS FAR AS EVERYTHING GOES, OTHER THAN THAT, OUR METHODOLOGY REMAINS THE SAME AS IT HAS BEEN FOR THE SEWER CHARGES.
AND, YOU KNOW, WE'RE IN A VERY GOOD POSITION AND THIS IS JUST AN ONGOING THING.
HEY, LET ME SEE IF THERE'S ANY QUESTIONS FOR YOU.
ANY SPEAKER CARDS ON THIS ITEM? NO SPEAKER CARD, SIR.
THE PO I HAVE TO OPEN THE PUBLIC HEARING.
UM, WE DON'T HAVE ANY SPEAKER CARDS, SO I'LL MAKE A MOTION TO CLOSE THE PUBLIC HEARING.
MOTION CARRIES BY UNANIMOUS VOTE.
OKAY, SO NOW I'M LOOKING FOR A MOTION I, I'LL MOVE TO ACCEPT THE STAFF RECOMMENDATION.
UH, ALSO, I WANNA MAKE A NOTE IF I READ THIS RIGHT, THE RATE IS NOT CHANGING FROM THIS YEAR TO NEXT YEAR.
THERE IS NO INCREASE IN SEWER RATES FOR OUR RESIDENTS.
UM, MR. GOBEL, UH, AS YOU RECALL, WE DID A RATE STUDY A COUPLE YEARS AGO AND IT PROJECTS OUT EXPENDITURES AND REVENUES OVER A PERIOD OF TIME.
AND BASED ON THAT EXPECTED EXPENDITURE, UM, WE THEN SET RATES AT A CERTAIN AMOUNT.
AND AS YOU RECALL, UH, WE SET A CERTAIN PERCENTAGE EVERY YEAR FOR THE NEXT FIVE YEARS, UH, BECAUSE WE WERE ABLE TO HOLD COSTS AND BE FRUGAL AND ECONOMICAL, AND WE'RE A LITTLE BIT BEHIND IN SOME OF OUR CAPITAL IMPROVEMENT PROJECTS, WE'RE RECOMMENDING NO RATE INCREASE, ALTHOUGH THE, THE RATE STUDY COULD JUSTIFY THE RATE INCREASE.
AND, AND SOMETIMES WHEN YOU SKIP A RATE INCREASE, IT COULD MEAN IN TWO YEARS YOU HAVE A DOUBLE INCREASE.
BUT I'M UNDERSTANDING THAT MIGHT NOT BE TRUE.
WE, WHAT WE WOULDN'T WANT TO DO IS DO WHAT YOU JUST SAID.
IF, IF THERE WAS A NEED FOR THE MONEY THIS YEAR AND NEXT YEAR, WE WOULD'VE BUILT THAT INTO THIS YEAR'S RECOMMENDATION, WHICH WE DON'T FEEL THERE'S A NEED FOR THAT IN SPITE OF WHAT MIGHT BE A THREE TO $4 MILLION FIX FOR THE GRAVES AVENUE SEWER COLLAPSE.
UH, THE FACT THAT RESIDENTS AREN'T GETTING A RATE INCREASE THIS YEAR AND NOT GETTING DOUBLED UP NEXT YEAR, THAT'S GOOD NEWS FOR THE PUBLIC.
SO I MADE A MOTION TO APPROVE THE STAFF RECOMMENDATION.
MOTION CARRIES BY UNANIMOUS VOTE.
[13. Issuance of Tax-Exempt Revenue Bonds for La Maestra Family Clinic, Inc. by the California Municipal Finance Authority RECOMMENDATION: That the City Council: Conducts the Tax and Equity Fiscal Responsibilities Act ("TEFRA") public hearing in consideration of the issuance of tax-exempt revenue bond financing by the California Municipal Finance Authority for the benefit of La Maestra Family Clinic, Inc., to provide for the acquisition and renovation of several buildings at 1242-1248 East Main Street, El Cajon, California, for the development of a new heath clinic; and Adopts the next Resolution, in order, approving the issuance of Bonds by the California Municipal Finance Authority not to exceed $15,000,000 for the benefit of La Maestra Family Clinic, Inc., to provide for the acquisition and renovation of several buildings at 1242-1248 East Main Street, El Cajon, California, for the development of a new heathcare clinic.]
13 IS ON THE ISSUANCE OF TAX EXEMPT REVENUE BONDS FOR LA MARA FAMILY CLINIC.I'LL ASK THE STAFF TO PLEASE INTRODUCE THIS ITEM, BUT FIRST, THE CITY ATTORNEY HAS AN ANNOUNCEMENT ON THIS ITEM.
UH, I NEED TO INFORM THE PUBLIC THAT I HAVE A CONFLICT OF INTEREST TO SIT HERE AND HELP WITH YOU ON, HELP YOU WITH THIS MATTER.
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REPRESENT LA MARA IN THIS FINANCING, SO AS THEIR COUNSEL, SO I WILL BE STEPPING OUT.GOOD AFTERNOON, MAYOR AND COUNCIL MEMBERS.
I'M JOSE DORADO, HOUSING MANAGER IN THE COMMUNITY DEVELOPMENT DIVISION.
THE GOAL OF TODAY'S PUBLIC HEARING IS TO SOLICIT COMMENT FROM THE PUBLIC ON THE ISSUANCE OF TAX EXEMPT BONDS FOR THE BENEFIT LA MATA FAMILY CLINIC, LOCATED AT 1242 THROUGH 1248 EAST MAIN STREET.
A COPY OF THE LOCATOR MAP HAS BEEN PROVIDED TO YOU ON THE DAAS, AS IT WILL NOT INCLUDED IN THE FINAL AGENDA PACKET.
DOES THE SLIDE SHOW UP THERE? SORRY.
THE GOAL OF TODAY'S PUBLIC HEARING, OH, SORRY.
THE PUBLIC HEARING IS A REQUIREMENT OF THE IRS AND ITS CONSISTENT WITH THE JOINT POWERS AGREEMENT BETWEEN THE CITY AND THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY AND THE GOVERNMENT CODE.
THE TEXAS DEBT BONDS WILL BE USED TO FINANCE THE PROPERTY ACQUISITION AND PROJECT IMPROVEMENTS AS DESCRIBED IN THE AGENDA REPORT.
PLEASE NOTE THAT THE FINANCING IS TO REIMBURSE NAAMA EXTRA AND THAT THESE INSURED TAX EXEMPT BONDS THE CITY BEARS NO LIABILITY, RESPECT TO THE ISSUANCE OF THE BONDS, AND THERE'S NO IMPACT TO THE GENERAL FUND.
AND THIS IS A LOCATOR MAP OF THE PROJECT LOCATION.
IT'S ON EAST MAIN NEAR, UM, NORTH SECOND STREET.
THE PROJECT SITE IS COMMERCIALLY ZONED WITH HEALTH CENTER CARE USES ALLOWED BY RIGHT.
THE PROPERTY WAS PURCHASED BY LA MATA BACK IN NOVEMBER OF 2021, AND BUILDING PERMITS WERE ISSUED IN NOVEMBER, 2023.
NOW, I WOULD LIKE TO INTRODUCE JERRY SUZUKI WITH CMFA TO GIVE A BRIEF OVERVIEW OF CMA FA C MFA'S ROLE, FOLLOWED BY LA MARA STAFF WHO WOULD LIKE TO SAY A FEW WORDS ABOUT THEIR ORGANIZATION AND THE PROJECT.
GOOD AFTERNOON, HONORABLE MAYOR, DEPUTY MAYOR AND COUNCIL MEMBERS.
MY NAME IS JARED SUZUKI FROM THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY, OR THE CMFA.
THE CMFA IS A JOINT POWERS AUTHORITY FORMED ON JANUARY 1ST, 2004, TO ASSIST LOCAL GOVERNMENTS, SMALL BUSINESSES, NONPROFIT ORGANIZATIONS WITH THE ISSUANCE OF BOTH TAXABLE AND TAX EXEMPT DEBT.
TO DATE, THERE ARE OVER 350 MEMBERS OF OUR JPA, THE GREAT CITY OF EL CAJON BEING ONE OF THEM.
AND, AND FOR THIS PROJECT, LA MARA IS ASKED THE CMFA TO BE THE MUNICIPAL ISSUER OF THE TAX EXEMPT REVENUE BONDS.
AND THE CMFA ANNUALLY DOES TYPICALLY AROUND 2.5 TO $3 BILLION IN BOND ISSUANCES.
UH, MY NAME IS JEFF NEWMAN, HONORABLE MAYOR AND COUNCIL MEMBERS, THANK YOU FOR PUTTING US ON YOUR AGENDA TODAY.
UM, LA MAESTRA HAS BEEN PROVIDING, UH, HEALTH SERVICES AND OTHER SOCIAL SERVICES IN SAN DIEGO COUNTY GOING BACK TO 1991.
WE ARE A FEDERALLY QUALIFIED HEALTH CENTER WHO, UH, EXPANDED OUT TO EAST COUNTY INTO EL CAJON IN 2004, AND CURRENTLY HAVE THREE CLINICS, UH, ONE OF WHICH JUST OPENED ABOUT A BLOCK AWAY ON R STREET, UH, THIS, THIS, UH, LAST FALL.
UH, WE ALSO USE THE TAX EXEMPT MUNICIPAL BONDS TO FUND, UH, THE PURCHASE OF THAT PROPERTY AND THE, AND THE REDEVELOPMENT OF IT.
UM, AND THIS PROJECT ON MAIN STREET, UH, IS GONNA BE BOTH AN EXPANSION AND JUST KIND OF REORGANIZATION OF SOME OF OUR SERVICES IN EAST COUNTY.
AND, UH, WE ALSO, UH, HAVE, ARE VERY COMMITTED TO THE SERVICES IN, IN EL CAJON.
WE ACTUALLY HAVE RECENTLY MOVED OUR, UH, OUR HUMAN RESOURCES AND SOME OF OTHER, OUR OTHER ADMIN, UH, TO SOME LEASE SPACE OUT ON FESSLER STREET.
UM, SO WE SEE THIS AS A, AS AN AREA OF GREAT NEED FOR, UH, THE 84% OF OUR, UH, OF THE PATIENTS WE SERVE ARE UNDER, AT OR UNDER 200% OF POVERTY.
AND THEY ALSO, WELL OVER 50%, UH, SEE ENGLISH, UH, AS, AS NOT THEIR MAIN LANGUAGE.
UM, SO WE'RE ALL, WE'RE VERY PROUD TO HAVE A VERY, UH, UH, DIVERSE COMMUNITY.
AND WE ARE, UH, SET UP THROUGH OUR CULTURAL LIAISON
[00:30:01]
PROGRAM, UH, TO BE ABLE TO PROVIDE THE BEST, UH, HEALTH AND DENTAL AND OTHER, UH, SOCIAL DETERMINANTS OF HEALTH AS POSSIBLE.SO WE THANK YOU FOR, UH, THIS OPPORTUNITY.
THANK YOU FOR COMING AND THANKS FOR ALL THE GOOD WORK THAT YOU DO IN THE COMMUNITY.
SO JUST TO RECAP THIS, UM, PUBLIC HEARING IS IRS REQUIREMENT FOR THE TAX EXEC ON FIN BOND FINANCING.
SO STAFF'S RECOMMENDATION IS FOR THE CITY COUNCIL TO OPEN AND CONDUCT THE PUBLIC HEARING, RECEIVE PUBLIC TESTIMONY, CLOSE THE PUBLIC HEARING, AND ADOPT THE RESOLUTION.
STAFF IS PREPARED TO ANSWER ANY QUESTIONS OR COMMENTS.
FIRST, JUST FOR THE PUBLIC'S, UM, ASSURANCES, THE CITY OF EL CAJON IS NOT FINANCIALLY LIABLE FOR ANY BONDS OR, UH, THAT, THAT ARE ASSOCIATED WITH THIS TRANSACTION.
IS THAT CORRECT? THAT IS CORRECT.
THIS IS ALL ON, ON LA MARA, CORRECT? WE'RE JUST, UH, ISSUING ON BEHALF OF THEM, CORRECT? YES.
I HAVE A QUESTION FOR THE CMFA REP.
UH, OUR, OUR ROLE HERE IS, IS MINISTERIAL.
WE'RE THE, UH, WATCHDOGS OF THE PUBLIC IN A SENSE.
UH, MAKE SURE THAT THE PUBLIC'S FUNDS ARE USED FOR PUBLIC BENEFIT.
UM, MY QUESTION FOR YOU IS, IN THIS CASE IT'S A LITTLE UNUSUAL 'CAUSE THEY STILL HAVE SOME LEASES THAT MUST HONOR.
ONE IS A TOBACCO OUTLET, UH, AND THE OTHER IS THE RESTAURANT TOGETHER.
THOSE TWO MAKE UP ABOUT 24% OF THE SQUARE FOOTAGE OF THIS.
IS THAT, UH, DUE TO YOU OR DO YOU HAVE OTHER SITUATIONS WHERE THEY MIGHT BE HAVING RENT PAYING TENANTS? UH, AS PART OF THE PROJECT, ARE YOU REFERRING TO THE BUILDINGS THAT ARE BEING ACQUIRED TO, TO FORM THIS NEW CLINIC? SO I'M TOLD 12 42, 12 46 AND 1248 UHHUH
IN TOTAL FOR 6.45 MILLION, UH, A COUPLE YEARS AGO.
1248 IS CURRENTLY A RESTAURANT.
UH, A SUITE AT THE END OF THE LARGEST BUILDING IS CURRENTLY LEASED BY A TOBACCO OUTLET.
YOU KNOW, IT'S IRONIC THAT LA MARA HAS TO RENT TO A TOBACCO OUTLET BECAUSE THAT SEEMS TO CONFLICT WITH HEALTH, BUT THEY DIDN'T HAVE A CHOICE.
WHO WAS THE TENANT WAS IN A SENSE.
UH, MY QUESTION IS, THEY'RE GOING TO BE GETTING INTEREST FREE LOANS, BUT THEY'RE GONNA BE COLLECTING RENT FROM PEOPLE.
USUALLY YOU COLLECT RENT TO PAY OFF A MORTGAGE THAT HAS INTEREST.
HAVE YOU HAD OTHER SITUATIONS IN THE STATE WHERE THE BONDS YOU'RE ISSUING ARE ALSO COLLECTING RENT? WE, I DON'T BELIEVE SO.
I WOULD ALSO, I WOULD DEFER TO LA MARA TO VOICE THEIR OPINION AS WELL ON THIS MATTER TO, UM, JUST TO PROVIDE FURTHER CLARITY FOR THIS.
UM, YES, ACTUALLY THIS WAS SIMILAR TO THE LAST BOND FINANCING WE DID, WHERE WE, UH, HAD PURCHASED SOME PROPERTIES THAT HAD, UH, TENANTS EXISTING.
UM, WHAT HAPPENS IN, IN THIS BOND FINANCING IS THAT, THAT IT GETS SPLIT BETWEEN BOTH A TAXABLE PIECE, WHICH IS FOR, IS FOR THE PORTIONS THAT ARE, UH, THAT WE DON'T OPERATE AS NON-PROFIT.
AND THEN THERE'S THE TAX EXEMPT PIECE, UM, WHICH ALL OF THIS FUNDING IS, IS, UH, BEARS INTEREST.
UH, IT'S NOT, UH, INTEREST FREE AT ALL.
UM, IT'S INSURED BY THE STATE OF CALIFORNIA, SO THEY GUARANTEE IT ON THE BACKEND.
BUT THESE ARE ALL BONDS PUBLICLY ISSUED AND PURCHASED OUT ON THE MARKET AT THE GOING INTEREST RATES AT THE TIME.
THANK YOU FOR THE CLARIFICATION.
I THINK ALSO WHAT I'M HEARING YOU SAY IS, UH, FOR THOSE PORTIONS OF THE PROPERTY THAT ARE FOR PROFIT, THEY MIGHT PAY THE POSSESSORY INTEREST PROPERTY TAX PORTION.
IS THAT KIND OF WHAT I'M HEARING? CORRECT.
WHEN, WHEN WE GO THROUGH THE PROCESS OF, OF POTENTIALLY GETTING SOME RELIEF FROM A PROPERTY TAX FOR THE, UH, NON-PROFIT SERVICES PIECE, THOSE WOULD REMAIN TAXABLE.
THANK YOU FOR THE CLARIFICATION.
THAT'S GOOD TO KNOW FOR THE TAXPAYERS THAT THERE'S STILL PROTECTIONS AND THE TAXPAYERS ARE GETTING THEIR PIECE FOR THAT, WHICH IS NOT FOR THE PUBLIC BENEFIT.
[00:35:03]
WE'VE ALREADY, DID WE ASK IF THERE WERE SPEAKER CARDS ON THIS? NO SPEAKER CARDS, SIR.ALRIGHT, THEN I LEAVE IT TO THE CITY COUNCIL, MAKE A MOTION, UH, MOVE ADOPTION AS OUTLINED IN THE STAFF REPORT.
MOTION CARRIES BY UNANIMOUS VOTE.
WELL, CONGRATULATIONS AND THANKS AGAIN FOR BEING PART OF THE COMMUNITY.
ITEM 15 IS AN UPDATE ON THE CITY COUNCIL ACTION PLAN.
WILL THE CITY MANAGER PLEASE INTRODUCE THIS ITEM? ACTUALLY, ACTUALLY, MR. MAYOR, CAN WE, UH, DO AGENDA ITEM 14 FIRST AND THEN WE'LL DO THAT ONE AFTER.
DID I MISS? YEAH, I THINK THAT, UH, THE CITY COUNCIL ACTION PLAN IS 15.
[14. El Cajon Parkway Plaza Reimaged Market Analysis RECOMMENDATION: That the City Council receives the report, shares feedback, and provides direction on possible next steps. ]
UH, WE HAVE TWO ADMINISTRATIVE REPORTS ON TODAY'S AGENDA.WILL THE CITY MANAGER PLEASE INTRODUCE THIS ITEM? THANK YOU MR. MAYOR.
ALMOST A YEAR AGO TODAY, THE CITY COUNCIL RECEIVED A PRESENTATION ABOUT, UM, THE, THE POTENTIAL OPPORTUNITIES AT PARKWAY PLAZA.
AND BASED ON THAT, THAT DISCUSSION, THE CITY COUNCIL DIRECTED STAFF TO GO OUT, FIND A FIRM TO DO A MARKET ANALYSIS OF POSSIBLE REDEVELOPMENT OPTIONS.
SO IT'S ONE THING JUST TO TALK ABOUT WHAT YOU'D LIKE TO SEE THERE, BUT IT'S ANOTHER THING TO ENSURE THAT THOSE OPTIONS ARE STEEPED IN REALITY, THE MARKET REALITY AND ECONOMIC REALITY.
SO, UM, STARTING SHORTLY AFTER THAT DIRECTION WAS GIVEN, THE CITY DEVELOPED A, A REQUEST FOR PROPOSAL.
IT WENT OUT ON THE STREET AND THROUGH THE SELECTION PROCESS, HUNT PARTNERS AND 5 0 5 DESIGN AT COOPER CAREY WERE SELECTED TO PROVIDE THE ECONOMIC ANALYSIS AND THEN ALSO THE ARCHITECTURAL RENDERINGS FOR A COUPLE OF DIFFERENT OPTIONS THAT, UH, WERE DEVELOPED AS PART OF THAT, THAT PROCESS.
UM, HUNT PARTNERS BEGAN THEIR, THEIR WORK WITH STAFF IN THE END OF 2023 AND STARTED IN EARNEST TALKING TO STAKEHOLDERS IN THE BEGINNING OF THIS YEAR, IN JANUARY.
AND THEY'RE AT A POINT NOW WHERE THEY'RE READY TO PRESENT THEIR PROPOSAL.
SO I'M GONNA KICK IT OVER TO ROB HUNTON OF HUNTIN PARTNERS, UM, TO PRESENT THE, UM, ANALYSIS.
AND THEN MR. DIMAGGIO WILL WRAP THINGS UP WHEN THEY'RE DONE.
UH, GOOD AFTERNOON ALL, UH, MAYOR AND COUNCIL.
MY NAME IS ROB HUNTIN, CEO OF HUNT PARTNERS.
UH, THRILLED TO BE HERE LEADING THIS TEAM WITH 5 0 5 DESIGN.
UM, TO, AS, UH, GRAHAM, UM, SUCCINCTLY PUT IT, UH, REALLY ASSESS THE SITUATION AT PARKWAY PLAZA.
IT'S ON SORT OF THE PRECIPICE OF, YOU KNOW, GOING ONE DIRECTION OR THE OTHER.
UM, AND SO I THINK THE CITY WAS VERY WISE TO ENGAGE IN AN ANALYSIS TO FIGURE OUT HOW IT MIGHT TURN THE CORNER BACK TO A BRIGHTER FUTURE FOR THE LONG HAUL.
UM, UH, JUST THE LAST SLIDE THAT, THAT YOU SAW THERE WAS JUST A LITTLE BIT ABOUT HYUNDAI PARTNERS ESTABLISHING OUR CREDIBILITY, BUT ESSENTIALLY I'VE BEEN DOING THIS, UM, FOR NEARLY 30 YEARS.
AND, UH, WE HAVE A FIRM OF ABOUT 30 FOLKS, MOST OF THEM IN CHICAGO THAT WORK ON THESE TRANSFORMATIVE PLACEMAKING, UH, REAL ESTATE DEVELOPMENT PROJECTS, UM, ALL OVER NORTH AMERICA AND THE WORLD.
AND SO WE ADVISE OUR CLIENTS, UH, REALLY FROM THE, THE WHOLE CONCEPT OF PLACEMAKING.
UH, IT'S NOT JUST A PLACE FOR VISITORS, BUT A PLACE TO LIVE, WORK, PLAY, UH, TO LIVE AS WELL, WORK, PLAY AND VISIT.
AND SO PARKWAY PLAZA FITS THAT.
AND SO WE WORK ON A LOT OF DEAD OR DYING MALLS.
AND SO AGAIN, YOU'RE AT THAT TRANSITION PHASE WHERE IF YOU LET IT GO TOO LONG, IT'S DEFINITELY GONNA GO IN A DIRECTION THAT YOU'RE PROBABLY NOT GONNA BE TOO FOND OF.
SO, UM, IT'S A GREAT TIME TO ASSESS THE SITUATION AND THE OPPORTUNITY.
UM, AND SO, UH, AS, AS, UH, GRAHAM PUT IT, UH, OUR FIRM WITH 5 0 5 WAS, UM, HIRED TO REALLY ASSESS THE MARKET, UM, THE OPPORTUNITIES FOR ALL DIFFERENT KINDS OF USES, UM, IN ADDITION TO, OF COURSE, UH, UH, THE ENHANCEMENT OF RETAIL, RESTAURANT AND ENTERTAINMENT, WHICH ALREADY IS THERE.
SO WHAT CAN BE DONE, WHAT COULD BE CREATIVELY DONE.
ALSO, HOW CAN THIS ALL BE DONE WORKING WITHIN THE BOUNDS OF THE FACT THAT YOU HAVE THREE, UH, DIFFERENT OWNERSHIP GROUPS THAT OWN DIFFERENT PARCELS.
AND SO WE'RE GONNA TALK ABOUT THAT.
UH, LET'S GO TO THE NEXT SLIDE.
SO AS WE LOOK AT ALL OF THESE THINGS, UH, WE'RE LOOKING, UM, SORT OF AT, IN THAT, UH, PLACE BETWEEN HOPE STREAMS AND UTOPIA, RIGHT? AND THAT HARD MARKET REALITY OF EVERYTHING'S TOO EXPENSIVE AND NOBODY CAN AFFORD ANYTHING, RIGHT? SO, UH, THE REALITY IS THAT, THAT WE WANT TO GET TO IS SOMEWHERE THAT GETS YOU TO SOMETHING THAT'S A STEP ABOVE THAT HARD MARKET REALITY OF, YOU KNOW, JUST, UH, DOING THE SAME OLD, SAME OLD, UH, S-O-S-D-D
[00:40:01]
AS THEY LIKE TO SAY.UM, SO WE DON'T WANT THIS TO END UP AS JUST FAST FOOD JOINTS AND THINGS LIKE THAT.
WE KNOW YOU DON'T WANT THAT NECESSARILY.
WE'VE HEARD THAT FROM OUR ENGAGEMENT, UM, OF ALL THE DIFFERENT PARTIES.
WE WANT THIS TO STILL BE THE CENTER POINT AND CENTER HEARTBEAT OF THE COMMUNITY.
AND SO WE LOOKED AT ALL OF THE DIFFERENT USES, UH, THAT THAT MIGHT WORK, AND UNDERSTOOD WHAT THE MARKET REALITIES ARE, WHAT THE FINANCIAL FEASIBILITIES ARE, UNDERSTOOD WHAT THE GAPS ARE FOR FINANCIAL FEASIBILITY.
AND, UH, AT THE END MADE A RECOMMENDATION THAT THEN WAS DRAWN BY 5 0 5 DESIGN TO SHOW YOU WHAT THIS COULD BE.
NOW, HOW THAT ACTUALLY MOVES FORWARD.
AT THE END OF THE, THE DISCUSSION TODAY, UM, YOU'RE GONNA HEAR US TALK ABOUT WHAT COULD BE NEXT STEPS IN TERMS OF AN ACTUAL BUSINESS PLAN TO MOVE FORWARD INTO A DIFFERENT STYLE OF DEVELOPMENT.
BUT ALL OF THESE THINGS HERE, UH, THAT YOU SEE, WE LOOKED AT SUPPLY AND DEMAND QUALITY, THE SITUATION WITH YOUR LOCAL MARKET, THE SITE ITSELF, ACCESS, VISIBILITY, ADJACENT USES, WHAT'S GOING ON WITH EACH OF THE INDIVIDUAL SORT OF, UM, UM, INDUSTRIES.
YOU KNOW, OFFICE IS A TOUGH PLACE TO BE RIGHT NOW, BUT OTHER THINGS ARE DOING REALLY WELL.
YOUR HOTEL MARKET IS DOING REALLY WELL.
UM, SO THERE ARE PROS AND CONS DEPENDING ON WHAT YOU'RE LOOKING AT.
SO ALL OF THESE THINGS SORT OF POINT TO A RECOMMENDED PROJECT.
WE ALSO LOOKED AT WHO'S DONE SOME TRANSFORMATIVE PROJECTS LIKE THIS WHERE THERE HAS BEEN A, YOU KNOW, A, A GENERATIONALLY CHANGING SITUATION WITH A MALL THAT IS, YOU KNOW, OUTMODED, OUTDATED, NOT GONNA CUT IT FOR THE LONG HAUL, WHAT HAVE THEY DONE ELSEWHERE? SO WE LOOKED AT THAT AS PART OF THIS.
SO I WILL TURN IT OVER TO LEXI NOW TO GIVE ABOUT A 15 MINUTE PRESENTATION ON OUR RESULTS.
THE, UH, FULL DECK IS WAY DEEPER AND LONGER, AND YOU, UM, WILL HAVE ACCESS TO THAT AT SOME POINT IN THE NEAR FUTURE, BUT TODAY WE'RE GONNA KEEP IT BRIEF FOR YOU AND THEN TALK ABOUT NEXT STEPS.
YEAH, LIKE ROB MENTIONED, WE'RE GONNA GO THROUGH A MORE CONDENSED VERSION, BUT STILL TAKING A LOOK AT WHAT THOSE CURRENT CHALLENGES ARE, WHAT ARE THOSE OPPORTUNITIES BASED ON THAT MARKET DEMAND? SO STARTING OFF WITH OUR SITUATIONAL OVERVIEW, SINCE ITS CONCEPTION IN 1972, PARKWAY PLAZA HAS SERVED AS THAT CENTRAL HUB OF ACTIVITY FOR SHOPPING AND RETAIL DINING SINCE, UH, THE PANDEMIC HAS EXASPERATE EXASPERATED, UM, SOME STRUGGLES IN TERMS OF LOSS OF MAJOR ANCHOR TENANTS, MOST RECENTLY BEING WALMART, BUT AS WELL AS CUSTOMERS.
SO ALTHOUGH THE CITY OBVIOUSLY DOES NOT OWN THE PROPERTIES, IT DOES HAVE THAT VESTED INTEREST TO WORK WITH THE PRIVATE STAKEHOLDERS AND PROPERTY OWNERS TO REALLY ENHANCE THE OFFERINGS INTO THAT LIVE WORK PLAGUE, UM, DISTRICT, AND ADDRESS SOME OF THOSE CHALLENGES THAT WE SEE HERE.
SO THOSE LIMITED COMPELLING AND UNIQUE DINING AND ENTERTAINMENT OPTIONS, AS WELL AS THAT LACK OF WALKABLE LIVE WORK PLAY DEVELOPMENT, NOT ONLY WITH ONSITE IN TERMS OF PARKWAY PLAZA AND THE OFFERINGS, BUT ALSO WITHIN THE AREA IN ORDER TO REALLY CATER TO THOSE RESIDENTS, BUT VISITORS ALIKE.
SO I JUST WANTED TO DO A HIGH LEVEL OVERVIEW.
WE ENGAGED THE MANAGEMENT, UM, THROUGHOUT OUR ENTIRE PROCESS TO REALLY UNDERSTAND WHAT THE GOALS AND OUTCOMES FOR THEM IN A, IN A VESTED INTEREST WOULD BE, BUT ALSO MARRYING THE CITY'S VISION TO REALLY HAVING THAT BE, UM, A RESIDENT AND LOCALLY CATERED DEVELOPMENT, BUT ALSO BEING ABLE TO ATTRACT VISITORS.
UM, SO IN TERMS OF JUST OUR OUTLINE HERE, SO THIS KIND OF LAYS OUT JUST WHO OWNS WHAT AND THEN KIND OF PUTTING IT INTO A MORE VISUALLY DIGESTIBLE WAY.
SO WE NOT ONLY LOOKED AT THE EXISTING INFRASTRUCTURE IN TERMS OF WHAT IS ON SITE ON THAT 81 ACRE SITE NOW, BUT ALSO THOSE PAD SITES, THE PARKING, AND HOW CAN THIS REALLY BE REIMAGINED TO CATER TO THOSE LOCAL NEEDS, BUT ALSO MEET THAT UNMET MARKET DEMAND CURRENTLY.
SO GETTING INTO OUR PERFORMANCE OVERVIEW.
SO WE USE A TOOL CALLED PLACER AI, WHICH IS GEOFENCING DATA THAT TRACKS CELL PHONES ALL THE WAY BACK TO 2017.
SO REALLY WANTING TO UNDERSTAND THOSE VISITATION TRENDS.
HOW HAS ACTIVITY AT THE MALL CHANGED SINCE THE PANDEMIC? SO LOOKING AT 2017 TO 2023, WE'RE ABLE TO SEE THAT THE TRUE TRADE AREA, WHICH IS OUR TOTAL VISITS THERE, HAS DECREASED BY ABOUT 16.5% OR ABOUT 1.5 MILLION VISITS, BUT OUR TOTAL VISITORS HAS ACTUALLY INCREASED.
SO THERE IS THAT 15% INCREASE IN OUR TOTAL VISITORS, BUT PEOPLE ARE VISITING THEM ALL A LOT LESS FREQUENTLY.
SO WHAT DOES THIS MEAN FOR PARKWAY PLAZA? IT MEANS THAT IT'S BECOMING MORE OF A STOP AND GO, UH, LET ME GO GRAB SOMETHING AND RUN AN ERRAND REALLY QUICKLY, BUT NOT NECESSARILY A PLACE THAT'S REALLY ABLE TO ATTRACT AND RETAIN NOT ONLY RESIDENTS, WHICH DEFINED HERE AS A LOCAL WITHIN ABOUT 10 MILES OF THE MALL, AND THEN REGIONAL OVER 10 MILES LESS THAN 25 MILES AND LONG DISTANCE IS CALCULATED ABOUT OVER 25 MILES FROM THAT SITE.
[00:45:01]
SO IN TERMS OF WHO'S REALLY VISITING THE MALL, IT IS CATERED MORE TOWARDS THE LOCALS THAN IT IS FROM THOSE VISITORS OVER 25 MILES.AS YOU SEE, THERE'S A, A NEARLY 16% INCREASE FROM 2017 TO 2023 OF THAT LOCAL VISITOR BASE AND ABOUT A STAGNANT, UH, TOTAL VISITORS FROM OVER 25 MILES, NOT NECESSARILY CREATING A DESTINATION OR A SENSE OF PLACE WITHIN EL CAJON THERE.
SO LOOKING AT KIND OF WHAT REALLY IS DRIVING VISITORS SPEND, WHY THEY, WHY THEY COME TO THE MALL.
THIS ALL FEEDS INTO WHAT WE ULTIMATELY ANALYZE IN TERMS OF OUR MARKET ANALYSIS, BUT REALLY WANTING TO UNDERSTAND THE WHY, WHICH THIS HELPS WITH.
SO IN TERMS OF, JUST WANTED TO TOUCH ON HERE, TRADITIONAL MALL CHALLENGES, THEY ARE DUE TO THAT COMBINATION OF QUALITY FORMAT, TENANT, TENANT MIXTURE OR LOCATION IN TERMS OF OUR HEADLINES, A VERY STRONG LOCATION THAT STRONG LOCAL AND REGIONAL POPULATION BASE.
SO WITHIN ABOUT 15 MINUTES OF PARKWAY PLAZA, 630,000 PEOPLE, WHICH THEN EXPANDS TO MORE THAN 2.2 MILLION IN 30 MINUTES, WHICH IS VERY ATTRACTIVE WHEN WE'RE LOOKING AT THOSE MAJOR NATIONAL TENANTS.
SO WHEN WE SAY A DYING MALL, A DYING MALL HAS THOSE INCREASED VACANCY AND AN INCREASED PRESENCE OF LOCAL TENANTS, WHERE A REALLY THRIVING SENSE OF PLACE REALLY HAS THAT NATIONAL TENANTS MIXED IN WITH THE LOCAL FIELD THAT CAN CATER TO ALL TYPES OF DEMOGRAPHICS.
SO IN TERMS OF THAT TENANT DEMAND, THERE STILL IS THAT VESTED INTEREST, ALTHOUGH PERFORMANCE HAS BEEN LAGGING IN RECENT YEARS BY NATIONAL TENANTS AND RETAIL RETAILERS, BUT IT COMES IN THE SENSE OF A MORE ENTERTAINMENT FOCUSED OR UNIQUE RETAIL CONCEPTS COMPARED TO YOUR MORE TRADITIONAL RESTAURANT AND RETAIL.
UM, SO WHERE, WHERE DOES THIS TAKE US? THIS TAKES US TO POSITION DEVELOPMENT FOR GROWTH.
SO REALLY WANTING TO EMPHASIZE THAT CENTRAL HUB OF ACTIVITY FOR THE CITY, BUT ALSO MEETING THAT MARKET DEMAND WITH REDEVELOPMENT THAT CAN INCORPORATE A MIX OF USES ON SITE, NOT JUST OUR TRADITIONAL RESTAURANT AND RETAIL.
AND THAT REALLY CAN SERVE AS A CATALYST FOR ECONOMIC DEVELOPMENT, NOT ONLY ON SITE OF PARKWAY PLAZA, BUT ALSO WITHIN THE SURROUNDING AREA HERE.
SO IN TERMS OF SOME OF THOSE MIXED USE DISTRICTS THAT WE TOOK A LOOK AT IN TERMS OF NATIONAL CASE STUDIES, THESE ARE A FEW JUST TO HIGHLIGHT, UM, ONE SOMEWHAT CLOSE BY AT ONE PASS, A RECENT DEVELOPMENT IN CARMEL VALLEY, NORTHERN, UH, NORTH COUNTY, SAN DIEGO, UM, BUT ALSO LOOKED AT MOSAIC, MOSAIC DISTRICT IN FAIRFAX, VIRGINIA, THE PEARL DISTRICT IN SAN ANTONIO, TO REALLY UNDERSTAND THE INSPIRATION.
BUT WHAT'S DRIVING THAT 24 7 ACTIVITY? SO SOME KEY HEADLINES HERE, DENSITY THAT LIVE, WORK, PLAY OFFERINGS INCLUDING RESTAURANTS, BARS, ENTERTAINMENT SPACES, MULTI-FAMILY UNITS, OFFICE SPACES, HOTELS AND PUBLIC SPACE DESIGN.
UM, DISTRICTS THAT INFUSE THAT LOCAL CULTURE, CULTURE INTO THEIR DESIGN, LANDSCAPING, ART AND TENANCY TEND TO RESULT IN THAT MORE AUTHENTIC AND UNIQUE DESTINATIONS.
YOU'LL SEE IN A FEW SLIDES THAT WE, WE HIGHLIGHT IN TERMS OF THAT HOTEL DEVELOPMENT VISITORS WANT TO STAY WHERE LOCALS GO.
SO THAT REALLY BEING AN EMPHASIS WHEN IT COMES TO THAT DESIGN FACTOR, WHICH WE HAVE 5 0 5 HERE FOR, TO KIND OF WALK THROUGH THAT, THAT WALKABILITY.
SO REALLY CREATING A SPACE WHERE VISITORS CAN TRULY SPEND AN ENTIRE DAY WITHOUT THE NEED TO WALK FAR DISTANCES OR HOP IN THE CAR AND THEN GATHERING.
SO PUBLIC SPACES THAT CAN CONTRIBUTE TO PLACEMAKING, BUT REALLY DOES EXTEND THAT VISITOR TIME FROM BEYOND JUST AN HOUR OR POPPING INTO A STORE JUST TO GRAB SOMETHING, BUT REALLY CREATING THAT SENSE OF PLACE WITHIN THE CITY.
SO IN TERMS OF HOW DOES PARKWAY PLAZA STACK UP TO SOME OF THE CASE STUDIES THAT WE LOOKED AT.
SO IN TERMS OF THOSE RATIO OF VISITS PER ACRE, PARKWAY PLAZA IS CURRENTLY, UH, PERFORMING AT 40% LESS THAN THOSE CASE STUDIES ANALYZED.
SO THOSE CASE STUDIES HAVE ON AVERAGE A 26 ACRE FOOTPRINT WITH PARKWAY PLAZA CURRENTLY HAVING THAT 81 ACRE FOOTPRINT, MUCH LARGER IN TERMS OF OUR, OUR SCALE, BUT NOT NECESSARILY ABLE TO ATTRACT THE SAME VISITOR TO ACRE RATIO THERE.
UH, OUTDOOR SPACE IS AN ESSENTIAL ELEMENT TO OFFER THAT CONNECTIVITY WITHIN THAT MIXED USE RECOMMENDATION, UM, AND OUR TRADITIONAL RETAIL MALL FOOTPRINT.
AND FINALLY, THE TOP DISTRICTS ACCO ACROSS THE COUNTRY REALLY DO INFUSE THAT VARIETY OF ELEMENTS THAT ARE ABLE TO SYNERGIZE TOGETHER TO DRAW IN, AGAIN, BOTH LOCALS AND VISITORS.
SOMETHING FOR EVERYONE, WHICH WE'LL WE'LL GET INTO IN THE FOLLOWING SLIDES HERE.
SO LOOKING AT OUR COMMERCIAL MARKET FINDINGS, THIS MIGHT SEEM LIKE A LITTLE BIT, UH, OF TEXT HERE TO TAKE IN, BUT I CAN WALK THROUGH IT.
SO IN TERMS OF WHAT WE LOOKED AT FROM AN ASSET CLASS, STARTING OFF WITH RETAIL RESTAURANT, THAT DEMAND IS VERY HIGH AND THAT IS PREVALENT WITHIN THE CURRENT PARKWAY PLAZA, BUT IT'S NOT NECESSARILY ACHIEVING OR NECESSARILY, UH, TARGETING THE DEMOGRAPHIC THAT IS REALLY RETAINED.
[00:50:01]
BARS, ENTERTAINMENT, MORE FAMILY FOCUSED FACILITIES, UM, THAT REALLY EMPHASIZES THE CONSUMER EXPERIENCE AND IMMERSIVE SPORTS CENTERED AND LIFESTYLE RETAIL.SO IN TERMS OF OUR LOCAL INSIGHTS HERE, THERE IS THAT HIGH DEMAND FOR URBAN, SPECIALLY ORIENTED RETAIL STORES AND ENTERTAINMENT BASED RESTAURANTS FOR ALL DEMOGRAPHICS COMPARED TO THOSE TRADITIONAL LARGE BOX RETAIL STORES WITH A LARGER FOOTPRINT.
OUR INTERVIEW TAKEAWAYS, WE SPOKE TO BROKERS, UM, AND COMPARABLE DISTRICTS ACROSS, UH, THE SAN DIEGO MARKET, BUT ALSO LOCALLY.
THERE IS THAT NEED FOR MORE NATIONAL RESTAURANT TENANTS, AND THAT INCLUDES THE DIVERSITY OF OFFERINGS FROM FAST FOOD AND QUICK SERVICE RESTAURANTS, UH, TO THINK OF LIKE A, A SHAKE SHACK TO DINNER HOUSES.
THINK OF LIKE A TEXAS LONGHORN.
UH, SO SURROUNDING MARKETS HAVE EXPERIENCED, UH, LARGE EXPANSIONS IN THEIR RETAIL SECTORS.
SO WE TOOK A LOOK AT LA MESA AND SANTEE, UH, AND THEY ARE SEEING INCREASING MARKET RATES AND POSITIVE NET ABSORPTION, WHICH IS POSITIVE FOR THE PROJECT.
HAVING IT HAPPENING IN SUCH CLOSE PROXIMITY IS A GOOD INDICATOR FOR THE POTENTIAL OF PARKWAY PLAZA'S PERFORMANCE.
IN TERMS OF MULTIFAMILY DEMAND, THERE IS A HIGH DEMAND NOT ONLY, UH, WITHIN THE LOCAL AREA, BUT ACROSS THE SAN DIEGO MARKET IN GENERAL, BUT IT'S ALSO BEEN SEEN IN THOSE DISTRICT BEST PRACTICES BEING ABLE TO ACHIEVE THAT MIX OF OFFERINGS THAT GETS PEOPLE TO BE IN, UH, A CENTRAL LOCATION AT ALL HOURS OF THE DAY, NOT NECESSARILY JUST YOUR TRADITIONAL RETAIL HOURS.
SO GENERATING THAT CONSISTENT ACTIVITY.
UM, AND WE RECOMMEND HERE THAT RAPTOR PODIUM STYLE LAYOUT, WHICH YOU'LL SEE IN SOME OF THOSE RENDERINGS THERE, BUT THERE IS THAT DEMAND FOR MULTIFAMILY ASSETS ACROSS THE MARKET, UM, LOOKING MORE SO IN THAT LOWER DENSITY.
SO FOUR, THINK ABOUT FOUR STORIES.
UM, IN TERMS OF WHAT'S EXISTING RIGHT NOW, IT IS CATERED MORE TO THAT LOWER DENSITY AND LOW COST PRODUCTS, UH, THAT DO PROVIDE EL CAJON WITH THE GREATEST MARKET OPPORTUNITY.
AND AGAIN, THAT'S BASED ON RESIDENT DEMOGRAPHICS, BUT ALSO CONVERSATIONS WITH, UH, BROKERS AND LOCAL MULTIFAMILY PROPERTIES IN TERMS OF OUR OFFICE DEMAND.
SO, AND WHAT TYPICALLY DISTRICT'S BEST PRACTICES INCORPORATE OFFICE DEMAND TO GENERATE ACTIVITY INTO THE DISTRICTS DURING, AGAIN, THAT NON-PEAK VISITATION HOURS.
THAT REALLY HELPED TO SUPPORT THE RETAIL AND RESTAURANTS WITHIN THE DISTRICT.
UM, BUT IN TERMS OF WHAT THE LOCAL INSIGHTS, THE SUBMARKET IS HISTORICALLY COMPOSED OF THAT MORE BLUE COLLAR DEMOGRAPHICS WITH MINIMAL CORPORATE PRESENCE.
SO IT DOES HAVE ONE OF THE LOWEST VACANCY RATES IN TERMS OF THE CURRENT SUPPLY OF OFFICE, UH, PRODUCT.
BUT THE EXISTING SUPPLY DOES CONSIST OF MORE LOWER QUALITY SPACES, UH, WITH ONE OF THE LOWEST AVERAGE RENTAL RATES.
SO IT'S NOT NECESSARILY RECOMMENDED FOR A LARGE DELIVERY OF CLASS A OR B OFFICE SPACE, BUT MORE SO LOOKING AT ALTERNATIVE COWORKING SPACES THAT HAS SEEN A REALLY HIGH SPIKE IN DEMAND IN THE SAN DIEGO MARKET.
UM, SO AGAIN, DUE TO THOSE CURRENT MARKET CONDITIONS, NOT NECESSARILY OUR RECOMMENDATION TO DELIVER A LARGE FOOTPRINT, BUT INCORPORATE SOMETHING THAT IS CATERED MORE TO THAT COWORKING SPACE OR MORE FLEXIBLE HOTEL DEMAND.
SO HOTEL DEMAND WAS DEEMED TO BE VERY HIGH WITH THE PROPERTIES THAT DO EXIST CURRENTLY WITHIN THE EL CAJON MARKET.
THEY DO SEE VERY CONSISTENT YEAR ROUND DEMAND AND STRONG RATES.
UM, AND THAT'S LARGELY D DUE TO CORPORATE AND LEISURE TRAVEL.
SO THERE IS DU OPPORTUNITY FOR THOSE ADDITIONAL SELECT SERVICE, STRONG BRANDED QUALITY HOTEL OFFERINGS TO REALLY HELP DIVERSIFY AND COMPLEMENT THAT CURRENT SUPPLY.
AND AGAIN, REALLY CATERING TO THE, THE NOTION THAT VISITORS WANNA STAY WHERE LOCALS GO IN TERMS OF JUST SOME, UH, INSPIRATION IMAGERY, IMAGERY HERE.
AND THIS REALLY DOES FOCUS ON THE NEED FOR THAT OUTDOOR CONNECTIVITY AND PROGRAMMING SPACE, CONNECTING THE ASSETS, NOT ONLY THAT OUR EXISTING WITHIN THAT EXISTING RETAIL FOOTPRINT, BUT ALSO WHAT'S RECOMMENDED FOR MULTIFAMILY HOTEL, HAVING IT BE A COHESIVE DESIGN AND CONNECTION THROUGH OUTDOOR SPACE AND TAKING ADVANTAGE OF THE BEAUTIFUL EL CAJON WEATHER THAT YOU GUYS GET TO EXPERIENCE, I SAY AS SOMEONE JEALOUS FROM CHICAGO
BUT IN TERMS OF OUR RECOMMENDATION MATRIX HERE, SO THIS JUST LAYS OUT, UH, BASED ON OUR MARKET ANALYSIS AND KIND OF THE QUICK SYNOPSIS THAT I RAN YOU THROUGH TODAY, AS WELL AS INTERVIEWS WITH THOSE NUMEROUS STAKEHOLDERS, WHAT REALLY IS THE OPPORTUNITY FOR THIS SITE, BUT ALSO FOR THE EL CAJON MARKET IN GENERAL, AND THAT IS THE UNIQUE RETAIL AND RESTAURANT CONCEPTS, SO MORE COMPELLING RETAIL AND RESTAURANT THAT CAN ATTRACT THAT FAMILY VISITATION FROM THE LOCAL AND REGIONAL MARKET.
SO WE THROW OUT THE WORD ENTERTAINMENT, WHICH DOES COMBINE THAT ENTERTAINMENT WITH TRADITIONAL, UH, RESTAURANT DINING OPTIONS THERE, UM, AS WELL AS MULTI-FAMILY.
SO RAPTOR PODIUM STYLE LAYOUT, UH, LOWER DENSITY MULTIFAMILY UNITS,
[00:55:01]
UM, AS WELL AS HOTEL.SO AGAIN, THAT SELECT SERVICE BRANDED QUALITY HOTEL.
THIS CAN RANGE FROM ABOUT 120 TO 150 KEYS TO REALLY DIVERSIFY THAT CURRENT LODGING ACCOMMODATIONS OFFERINGS WITHIN THE CITY.
AND THEN FINALLY THAT CONNECTIVITY OUTDOOR PLAZA SPACE AND PROGRAMMING, WHICH YOU'LL SEE, UM, IN THE NEXT FEW SLIDES HERE.
BUT THIS REALLY DOES AIM TO IMPROVE AND REIMAGINE THE CURRENT PARKWAY PLAZA SPACE WITH, UH, INTRODUCING SOME AMENITIES AND ASSETS THAT ARE CURRENTLY EXISTING, BUT A MORE REDEFINED WAY AS WELL AS NEW ASSETS TO THE PROPERTY THAT CAN REALLY DIVERSIFY THAT LIVE, WORK AND PLAY ATMOSPHERE.
SO I WILL LET, UH, CARL WITH 5 0 5 DESIGN, WALK YOU GUYS THROUGH SOME OF THE CONCEPT SITE PLANS, UM, AS WELL AS SOME RENDERINGS FOR YOU ALL.
UM, YOU KNOW, I'M, I THINK A LOT OF WHAT ROB AND LEXI LAID OUT THAT, YOU KNOW, WE, WE'VE USED A LOT OF THAT BASE INFORMATION, THE MARKET DATA, THE PROGRAM, AND TRY TO REALLY, YOU KNOW, ENVISION HOW THAT MIGHT PHYSICALLY TRANSLATE INTO A PLAN AND SOME STUDIES.
UH, SO IT GIVES YOU A BETTER IDEA OF, OF SORT OF THE ASPIRATIONAL VISION.
I THINK VISUALLY BEING ABLE TO IDENTIFY SOMETHING IS A LITTLE EASIER.
YOU KNOW, IF YOU HAVE SOMETHING AS A, AS A FRAME OF REFERENCE.
I, I THINK IN GENERAL, I'M GONNA WALK YOU THROUGH A FEW CONCEPTS.
ONE IS AN OVERALL STRATEGY AND MASTER PLAN THAT WE SEE, UH, FOR THE OVERALL PROPERTY.
OBVIOUSLY, AS YOU KNOW, THERE'S INDIVIDUAL PROPERTY OWNERS AND I, AND I THINK, UH, DEPENDING ON THE MARKET AND HOW THINGS ARE PHASED, THIS WOULD PROBABLY BE THE, THE OPTIMAL OUTCOME.
AND WE'VE ALSO EXPLORED SOME OTHER STUDIES ABOUT WHETHER WE JUST TAKE INDIVIDUAL PIECES AND WHAT THAT MIGHT, UH, YOU KNOW, WHAT THAT MIGHT, UH, UH, ALLOW, YOU KNOW, IF IT JUST, UH, WENT, UH, YOU KNOW, INDEPENDENTLY AND ORGANICALLY GROW OVER TIME.
WHAT'S BASICALLY REPRESENTED HERE IS, IS REDUCTION OF ABOUT 50% OF THE PHYSICAL INTERIOR MALL.
WE, WE ARE ADDING BACK IN ABOUT 25% OF THAT LOST GLA.
BUT I THINK, YOU KNOW, AS YOU KNOW, AS LEXI WAS SAYING, THERE'S, THERE'S STILL A REAL BIG DEMAND FOR RETAIL IN THIS MARKET.
THERE'S A GREAT DESIRE, THERE'S A LOT OF INTEREST.
I THINK WHAT'S, WHAT'S THE BIGGEST CHALLENGE RIGHT NOW, THERE ISN'T A, A, A, A, A PRODUCT THAT REPRESENTS THE TYPE OF BRAND AND THE, AND, UH, THE TYPE OF ENVIRONMENT THAT A LOT OF THESE, UH, UM, INTERESTED PARTIES ARE WILLING TO COME INTO.
AND I THINK ONE OF THE THINGS WE'RE TRYING TO DO HERE IS REALLY CREATE, UM, UH, ENVIRONMENT THAT DOESN'T NECESSARILY GET RID OF RETAIL, BUT RE ENVISIONS THE TYPE OF RETAIL AND ENTERTAINMENT USES THAT ARE HERE.
IT'S MORE FOCUSED ON ENTERTAINMENT, IT'S MORE FOCUSED ON DINING.
UH, I THINK THERE'S A LOT OF OPPORTUNITIES FOR, FOR LOCAL ENTREPRENEURS TO PARTICIPATE IN THIS BECAUSE I THINK THERE'S A LOT OF GREAT CONCEPTS THAT GROW IN THIS MARKET, OR SMALLER NATIONAL REGIONAL PLAYERS THAT WANT A MORE, UH, CURATED, UM, YOU KNOW, OPPORTUNITY TO EX, YOU KNOW, TO EXPAND THEIR BRAND.
AND I THINK THEY WANT PLACES LIKE THIS THAT ARE GONNA BE AUTHENTIC AND UNIQUE TO CERTAIN MARKETS AS OPPOSED TO GOING TO A NUMBER OF CITIES THROUGHOUT THE COUNTRY AND BASICALLY RECREATE, UM, THEIR IDENTITY.
YOU'LL ALSO SEE THAT A LOT OF THIS IS REALLY FOCUSED AROUND OUTDOOR SPACE, REALLY CREATING A, A REAL DESTINATION, SOMETHING THAT HAS, UH, A, A GREAT, UH, APPEAL NOT ONLY TO THE RETAILERS, BUT IT REALLY BECOMES A, A, A MAJOR GATHERING POINT FOR THE COMMUNITY.
SO THIS IS SOMETHING THAT IS NOT ONLY GONNA, UH, KEEP PEOPLE HERE WITHIN THE MARKET, BUT YOU KNOW, EVEN THOUGH WE TALKED ABOUT SOME OF THE NEIGHBORING COMMUNITIES LIKE SAN AND WHATNOT, THIS IS STILL THE COMMERCIAL CORE OF THIS OVERALL, UM, EASTERN SIDE OF, OF SAN DIEGO.
AND I, AND I THINK THERE'S GONNA BE A REAL DEMAND, UH, THAT'S GONNA DRAW THEM IF YOU HAVE THE RIGHT USES FRAMED AROUND IT.
TH THIS IS KIND OF A, A PHASE ONE.
I THINK THIS IS KIND OF KEEPING THE EXISTING MALL AS IS, BUT, YOU KNOW, I THINK WE'RE LOOKING AT THE BACKSIDE, THE, THE, THE, THE SOUTH SIDE OF THE PROPERTY.
UH, IN THIS CASE HERE, WE'VE ELIMINATED WALMART.
UH, WE'RE REPURPOSING ONE OF THE PARKING DECKS, STARTING TO INTRODUCE THE NOTION OF RESIDENTIAL.
UH, A LOT OF THESE, UH, PHASES OF RESIDENTIAL ARE IN THE THREE TO 350 UNIT COUNT.
THAT'S USUALLY WHAT WE'RE SEEING IN THE MARKET RIGHT NOW AS A DIGESTIBLE, UH, SCALED, UH, DEVELOPMENT THAT, YOU KNOW, REALLY I THINK HITS THE MARK OF WHAT IS FEASIBLE AND WHAT'S, WHAT'S REALISTIC.
THIS STARTS TO INTRODUCE THAT.
AND ONCE YOU START LAYERING IN, UH, YOU KNOW, A LOT OF THESE MIXED USE AMENITIES, ALL STARTING TO, STARTS TO SHIFT THE DYNAMIC OF WHAT YOU CAN CREATE.
AND, UH, AND PEOPLE START TO VISUALIZE YOUR PROPERTY AS SOMETHING OTHER THAN JUST THE MALL.
THEY START SEEING IT AS A DISTRICT.
AND I THINK THAT LURES A DIFFERENT TYPE OF TENANT.
UH, YOU CAN SEE ALONG THE FLETCHER PARKWAY SIDE, WE START TO CLUSTER SOME OF THE RESTAURANTS AS OPPOSED TO CREATING JUST PADS.
WHAT ARE THINGS THAT YOU CAN KIND OF
[01:00:01]
REALLY CREATE UNIQUE, UH, UH, ACCUMULATION OF, OF DIFFERENT TENANTS THAT CREATES A UNIQUE DINING SPACE OR AN OUTDOOR ENVIRONMENT? SOMETHING THAT'S BEYOND, YOU KNOW, I THINK WHAT PEOPLE ARE USED TO RIGHT NOW IN THE CURRENT MARKET.UM, YOU KNOW, WE'VE ALSO, UH, EXPLORED STUDIES ABOUT, UH, ABOUT WHAT HAPPENS IF WE LOOK AT INDEPENDENTLY DEVELOPING THE DIFFERENT PARCELS.
UH, I THINK AS YOU CAN IMAGINE THAT THE MAIN MALL, YOU KNOW, THERE IS, THERE'S A HUGE, UM, UH, FINANCIAL ASK IN LIFT THERE TO REALLY TRANSFORM THAT.
I THINK THERE'S A MUCH MORE VIABLE AND REALISTIC OPPORTUNITIES OF EITHER OF THE ANCHOR PARCELS IN EITHER END.
UM, UM, YOU KNOW, GOING THROUGH A TRANSFORMATION IN A QUICKER TIMEFRAME.
AND THESE ARE SOME STUDIES THAT REPRESENTS WHAT COULD HAPPEN AS A PHASE ONE DEVELOPMENT, AND THEN YOU CAN ORGANICALLY GROW FROM THERE ARE, UH, THIS KIND OF REPRESENTS THE OLD MACY'S SITE.
UM, AGAIN, THIS DOESN'T NECESSARILY CHANGE IT, THIS IS KIND OF WORKING WITHIN THE BOX OF THE MACY'S DEPARTMENT STORE ITSELF, BUT REALLY LOOKING AT HOW THIS CAN REALLY, UH, UH, BE AN ACCESSORY TO EXISTING MODEL, HELPS STRENGTHEN THE EXISTING MALL, STRENGTHENED THAT END OF THE PROPERTY, AND, AND BRING A NEW, UH, PROGRAM IN USE TO IT.
IN THIS CASE, THIS IS CONTINUING THAT INDOOR, UM, CONCOURSE THROUGH THE MALL.
IT BRINGS IT OUT TO AN OUTDOOR PEDESTRIAN PROMENADE, SOMETHING WHERE YOU CAN HAVE A LOT MORE, UH, YOU KNOW, FOOD AND BEVERAGE CONCEPTS WITH, WITH KIND OF A, A LINEAR PROMINENT THAT ALLOWS FOR GREAT OUTDOOR DINING THAT STARTS TO LINK TOGETHER TO RESTAURANT PADS, THE MARKET, UH, UH, YOU KNOW, UH, JUST ACROSS THE WAY.
AND IT STARTS TO CREATE A LITTLE BIT MORE SYNERGY AND MORE OF A UNIFIED DESTINATION.
AND OVER TIME YOU CAN START TO PULL THAT ENERGY, UH, TO THE WEST.
UH, THIS IS LOOKING, UM, UH, OVER AT THE OLD SEARS PROPERTY, AND TO A CERTAIN EXTENT, THE, THE, THE BOX ITSELF HAS GONE THROUGH A LOT OF TRANSFORMATION ALREADY.
BUT AGAIN, YOU KNOW, LOOKING AT BEYOND THE BOX ITSELF, WHAT ARE THE OPPORTUNITIES EXIST TO REALLY DIVERSIFY THE OFFERINGS THERE? UM, IN THIS CASE HERE, UH, THERE IS OPPORTUNITY FOR RESIDENTIAL.
UH, THIS IS SHOWING ROUGHLY, UM, ABOUT 350 TO 400 UNITS OF MULTIFAMILY.
YOU CAN KIND OF CREATE A LITTLE, UH, A SMALLER RETAIL, UH, DISTRICT, UH, OVER TIME.
MAYBE SOME OF THOSE LARGER, UH, BOX FORMAT USERS CAN, CAN BECOME, UH, GROCERY FOOD, UM, UH, FOOD AND BEVERAGE, THEY CAN BE ENTERTAINMENT USES.
THERE IS A, A LOT OF INTEREST BY HOTELS IN THIS SITE THAT, THAT BEING ONE OF THE LOCATIONS THAT'S BROUGHT UP MOST OFTEN.
UH, SO YOU CAN BASICALLY CREATE A DISTRICT ANCHORED BY HOTEL, UH, UH, BY FOOD AND BEVERAGE, A SMALLER PARK PLAZA RESIDENCE ON SITE.
AND YOU HAVE A VERY DYNAMIC, UH, UH, CORE THAT YOU CAN NOW, NOW USE AS A BUILDING BLOCK FOR THE REST OF YOUR DEVELOPMENT.
UM, BUT YOU KNOW, I, I THINK I'M GONNA GO BACK TO THE BIGGER VISION AND I, I THINK THIS IS WHAT WE SEE IS IN IS, IS IDEAL SOLUTION IN FOR THE PROPERTY.
UH, YOU KNOW, I, I THINK IN THIS CASE HERE, WE'RE KEEPING ABOUT 50% OF THE ENCLOSED MALL.
WE, THERE'S A HUGE DEMAND FOR, FOR A, A REGIONAL MALL STILL.
I THINK IT'S JUST THAT THERE'S ONLY SO MUCH THAT YOU CAN, THAT YOU CAN KIND OF CONTAIN WITHIN A SINGLE LOCATION.
AND THIS WILL TAKE YOUR STRONGEST TENANTS, CONCENTRATE THEM, UH, ON A WING OF THE MALL.
THAT'S REALLY GOING TO DRIVE UP, I THINK THE, THE QUALITY OF TENANTS AND THE AMOUNT OF USAGE OF THAT AREA.
AND YOU'RE GONNA USE THAT AS AN, AS SOMETHING THAT WILL SPILL OUT INTO LARGE COMMON AREA GREEN, UH, WHAT'S SHOWN THERE, THE HIGHER VOLUME IS EXISTING, UM, UH, CINEMA.
UH, SO THIS IS BASICALLY PEELING BACK THE MALL TO ABOUT THE CENTER COURT.
UH, WE ARE REUSING THE CINEMA AND, AND BASICALLY TRANSITIONING SOME OF THAT SPACE INTO NOW OUTDOOR SPACE.
INSTEAD OF BEING BURIED IN THE MALL IS NOW THE, THE ANCHORING IN OUTDOOR LIFESTYLE DISTRICT.
YOU HAVE RESTAURANTS, SMALLER CREATED RETAIL.
UH, THERE'S AN OPPORTUNITY FOR UPLEVEL, UH, USES, WHETHER IT'S CREATIVE, CO-WORKING SPACES, CREATIVE OFFICE.
UH, YOU KNOW, WHILE TRADITIONAL OFFICE AND STRONG CREATIVE OFFICE, MEDICAL OFFICE COWORKING ARE STILL VERY STRONG, UH, THERE'S FITNESS OPPORTUNITIES, WHICH IS STILL IN HIGH DEMAND IN THIS MARKET.
UM, AND YOU CAN SEE ALL THE RESIDENTIAL THAT LINES, UH, THE HIGHWAY IN THE, IN THE BACKDROP OF THIS.
UM, AND THIS IS THE, THE SPACE IN AND OF ITSELF THAT'S CENTER BLOCK IS, IS PRETTY LARGE.
UM, AND IT CAN BE FILLED WITH ANY NUMEROUS AMOUNT OF ACTIVITIES, WATER FEATURES, RESTAURANTS, UH, YOU KNOW, WEEKEND YOGA.
AND, UH, IF YOU, AND YOU CAN CLOSE DOWN BOTH OF THE, THE, THE ALIGNING STREETS.
[01:05:01]
SO THAT CAN BECOME A BIG REGIONAL HUB.IF YOU HAVE ANY LARGE EVENT, UH, YOU KNOW, WHETHER IT'S FARMER'S MARKETS, CONCERT SERIES, UH, UH, MARKET FAIRS, YOU KNOW, THIS CAN BE A, A MAJOR REGIONAL HUB AND DRAW.
UM, AND THIS IS SHOWING, UH, THE RESIDENTIAL AND THE HOTELS AND WHAT THAT CAN DO TO, TO REALLY CREATE, UM, AND ACTIVATE THE HIGHWAY SIDE OF THE PROPERTY AND REALLY BECOME A, A, A GREAT, UM, UH, YOU KNOW, A WELCOME MAT, UH, YOU KNOW, TO THE CITIES YOU PASS BY.
SO THESE ARE JUST SOME IMAGES.
A AGAIN, JUST GIVING YOU A, A SENSE OF WHAT THE OVERALL VISION COULD BE.
AND I WILL TURN IT BACK TO LEXI.
SO ONCE WE WENT THROUGH THE DEMAND AND FINANCIAL PROJECTIONS IN TERMS OF THAT KIND OF GRAND SCENARIO, LOOKING AT THAT 50% MALL REDUCTION FOOTPRINT, WE RAN AN ECONOMIC IMPACT ANALYSIS TO UNDERSTAND WHAT WOULD BE THE BENEFIT TO THE LOCAL AREA, BUT ALSO GENERATED THROUGH THAT TAX IMPACT.
SO WHAT WE DID HERE WAS KIND OF BREAK IT DOWN BASED ON THE PRIORITY IN TERMS OF OUR RETAIL AND RESTAURANT PHASES, ONE AND TWO, AS WELL AS RE RESIDENTIAL PHASES ONE AND TWO, AND THEN HAVING THAT COMBINED IMPACT OF ALL THE USES, WHICH INCLUDES THE HOTEL, UM, THE MULTI-FAMILY, THE RESIDENTIAL RETAIL RESTAURANT, AS WELL AS SOME OF THAT COWORKING OFFICE SPACE.
SO FROM A RETAIL AND RESTAURANT PERSPECTIVE, WHAT WE SEE FROM NET NEW SPENDING, AND THAT'S WHAT WOULD BE OCCURRING IF NOT FOR THE PROJECT OR IF NOT FOR THOSE REIMAGINED USES ABOUT 5.55 BILLION OVER A 30 YEAR TIMEFRAME.
SO, LOOKING AT PHASE ONE OPENING IN YEAR ONE WITH PHASE TWO FOLLOWING IN ABOUT YEAR THREE, UM, THAT WOULD ALSO GENERATE ABOUT 2.5 BILLION IN NET NEW EARNINGS SUPPORTING, UH, JUST UNDER 1500 PERMANENT JOBS.
AND THEN FROM A COUNTY SALES TAX, SO THAT COUNTY SALES TAX OBVIOUSLY BEING THAT 7.25%, 257 MILLION, AND THEN LOOKING AT OUR CITY TAXES, THAT 1% SALES TAX BEING ABOUT 65 MILLION, THAT RESIDENTIAL REALLY GENERATING, UM, A SIGNIFICANT LOCAL TAX IMPACT.
AND THAT'S FROM THOSE RESIDENTS BEING ON SITE SPENDING MONEY WHERE THEY WOULD NOT HAVE ELSEWHERE.
UM, SO ABOUT 130 MILLION IN LOCAL TAXES GENERATED THAT ALSO IS INCLUSIVE OF THOSE PROPERTY TAXES FROM A CITY PORTION.
UM, AND IN TERMS OF THOSE COMBINED USES, SO COMBINING THAT SALES TAX, TRANSIENT OCCUPA OCCUPANCY TAX AT 10% FOR THE CITY, AS WELL AS THOSE PROPERTY TAXES FROM THE CITY PORTION, UM, THE COMBINED TOTAL, UH, ECONOMIC IMPACT OVER THAT 30 YEAR TIMEFRAME BEING ABOUT 303 MILLION, UM, IN THOSE LOCAL TAXES GENERATED.
UM, AND SIGNIFICANT NET NEW SPENDING REALLY JUST, UH, BEING ABLE TO GENERATE THAT DIRECT, INDIRECT AND INDUCED IMPACT FROM THE PROJECT AND VISITORS THAT WOULD NOT HAVE EITHER COME TO THE MARKET OR SPEND THAT DOLLAR OTHERWISE.
UM, IN TERMS OF THE SUPPORTABLE FINANCING GAP, IN SUMMARY, I'M ACTUALLY GONNA HAVE ROB JUMP IN HERE JUST TO TALK TO TOUCH ON THIS AT A HIGH LEVEL.
UM, AND THEN I BELIEVE WE'RE GONNA BE TALKING ABOUT OUR CONCLUSION AND NEXT STEPS, STEPS FOLLOWING THIS SLIDE.
SO, UH, CERTAINLY THE EXCITING THING ARE THE PICTURES AND WHAT THE VISION CAN BE.
THEN OF COURSE WE COME TO THE, THE REALITY OF THE, THE FINANCIAL SIDE OF IT, UM, WITH, UM, INTEREST RATES BEING HIGH AND CONSTRUCTION COSTS BEING HIGH.
UH, WE HAD A LOOK AT THIS, YOU KNOW, TODAY, AND WHAT WE HAVE IS WHAT WE CALL SUPPORTABLE PRIVATE FINANCING.
THAT IN THE CASE OF RETAIL IS GENERALLY POSITIVE AND WE DON'T SEE A FEASIBILITY GAP THERE.
UM, ON THE RESIDENTIAL SIDE, IT'S A LITTLE BIT MORE OF A MIXED STORY, AND SO THAT WOULD HAVE SOME GAP FUNDING NEEDED TO, UH, GET THE, THE QUALITY AND TYPE OF RESIDENTIAL HERE THAT WE WERE LOOKING AT.
UM, BUT AGAIN, THAT'S GOING TO BE A NICE STEP UP FOR THE, THE STYLE AND TYPE AND NEWNESS OF THE RESIDENTIAL HOTEL ACTUALLY, UM, HAS A LITTLE BIT OF A GAP, EVEN THOUGH THE MARKET'S VERY STRONG.
HOTELS ARE PRETTY EXPENSIVE TO BUILD.
UM, BUT THAT'S STILL NOT TOO BAD.
AND, UM, SO WE SEE ABOUT A 30, ABOUT A ONE THIRD, UH, FINANCIAL FEASIBILITY GAP FOR THE HOTEL, UH, OF 200, 2, 270 KEYS BETWEEN TWO HOTELS.
AND THEN THE OFFICE ALSO IS ABOUT A ONE THIRD TO TWO THIRDS, UH, UH, GAP VERSUS SUPPORTABLE PRIVATE FINANCING.
SO IN TOTAL, WE'RE LOOKING AT ABOUT, AND AGAIN, THIS IS JUST FOR THE BUILT ENVIRONMENT, DOESN'T NECESSARILY TAKE INTO ACCOUNT, UH, ALL THE PUBLIC INFRASTRUCTURE AND THINGS THAT MIGHT GO WITH IT.
SO I WOULD SAY THIS IS, THIS NUMBER COULD GO A LITTLE BIT HIGHER, UM, AS ALL NUMBERS DO THESE DAYS.
BUT, UH, ABOUT $450 MILLION IN TOTAL COST SUPPORTABLE FINANCING APPROACHING ABOUT 300 MILLION, WHICH MEANS GAP FUNDING NEED OF ABOUT 164 MILLION.
NOW, WHAT WE HAVEN'T DONE AND WHAT, UM, COULD HAPPEN
[01:10:01]
IN A FUTURE PHASE OF BUSINESS PLANNING IS THE GOAL ALWAYS IS TO FIGURE OUT HOW DO WE RECAPTURE THESE NET NEW SPENDING, UH, AND TAXES THAT ARE GONNA OCCUR ON SITE, BUT, YOU KNOW, DUE TO, AND, BUT FOR THIS PROJECT THAT THEY WOULD NOT EXIST AND, AND WHAT CAN WE CAPTURE AND USE AS A TOOL IN OUR TOOLBOX TO INCENTIVIZE THIS, THIS DEVELOPMENT, AND THIS PROJECT WITH ALL OF THESE DIFFERENT ELEMENTS.AND SO, TO THE EXTENT THAT WE COULD RECAPTURE THESE IN THIS DISTRICT, UM, AND APPLY THOSE TO THOSE FUNDING GAPS, THEN ALL OF A SUDDEN WE START TO SEE AN OPPORTUNITY FOR THE CITY TO TAKE A LEADING ROLE IN WORKING WITH THE PRIVATE SECTOR TO MAKE THESE THINGS HAPPEN.
NOW, WE HAVE THREE PRIVATE SECTOR ENTITIES IN ONE CITY, AND, UH, BUT YOU'RE THE LONG HAUL, YOU'RE THE FOLKS THAT ARE HERE FOR, FOR THE LONG TERM.
SO I'M GONNA BRING STEVE HAMMERLY UP, WHO'S OUR, UH, EXECUTIVE VP OF ADVISORY, AND WE ARE JUST, I THINK AT THIS POINT, THIS IS THE END OF THE, THE SLIDE DECK.
SO WE'RE HERE TO ANSWER QUESTIONS, AND ALSO WE'VE PUT SORT OF A NEXT STEP, UH, SLIDE UP HERE TO TALK ABOUT WHAT YOU MAY OR MAY NOT WANT TO DO AS YOU GO FORWARD.
BUT ONE THING THAT I WILL SAY, AND I, I MENTIONED TO THE MAYOR, UM, JUST BEFOREHAND IS, YOU KNOW, 80% OF FEASIBILITY STUDIES END UP ON A SHELF OR AS A LOVELY DOOR STOP.
UM, THE, THE DIFFERENCE BETWEEN THOSE THAT MOVE FORWARD AND, AND, AND PROJECTS THAT MOVE FORWARD AND STUDIES THAT, UH, JUST SIT THERE AND GATHER DUST, REALLY IS THAT X FACTOR OF LEADERSHIP AND SORT OF TENACITY AND CREATIVITY.
SO, UM, YOU ALL ARE OBVIOUSLY THE LEADERS IN THE COMMUNITY, AND SO WE REMAIN, UM, HERE AND A TOOL FOR YOU TO USE, UH, TO THE EXTENT THAT YOU'RE, YOU BELIEVE THAT THIS IS A, A GOOD WAY TO MOVE FORWARD OR PRESENT SOME OPTIONS FOR MOVING FORWARD.
UH, WE STAND READY TO ASSIST, BUT ALSO HERE TO TAKE QUESTIONS AT THIS TIME.
UH, GREAT PRESENTATION BY THE WAY.
UH, I KNOW EVERYBODY'S GOT QUESTIONS.
WHO WOULD LIKE TO START? MICHELLE, DO YOU HAVE QUESTIONS? PHIL, GO AHEAD.
I KNOW THIS IS A LARGE ENDEAVOR AND I APPRECIATE THE THOROUGHNESS, UM, COWORKING SPACES IS, CAN YOU DEFINE THAT FOR US? IS THAT WHERE PEOPLE RENT OUT A SMALL AREA OF OFFICE SPACE AND FOR A MONTH OR TWO, OR HOW, HOW DOES THAT WORK? YEAH, AND THERE'S A LOT OF DIFFERENT FORMS IT CAN TAKE, BUT THE TRADITIONAL SENSE WOULD BE RENTING IT OUT, WHETHER IT BE KIND OF THAT SHORT TERM LEASE OF AN HOUR OR A DAY PASS, OR YOU ALSO HAVE THINGS THAT COULD BE FOR WEEKS AT A TIME.
SOME PEOPLE THAT WORK FROM HOME DO LIKE THE OPTION TO HAVE A PLACE TO GO INTO THE OFFICE WHERE THEY'RE ABLE TO DO MORE OF A MONTH BY MONTH LEASE.
IT REALLY IS FLEXIBLE IN ITS NATURE, BUT DOES KIND OF PROVIDE THAT ALLOWANCE TO HAVE PEOPLE COME IN AND WORK SOMEWHERE, BUT NOT NECESSARILY BE COMMITTED TO THAT SAME TRADITIONAL OFFICE TENANT LEASE.
UM, AND, UH, I NOTICED IT WAS, UH, THE RECOMMENDATIONS MOSTLY FOCUSED AROUND MULTIFAMILY APARTMENTS.
IS THERE ANY, I DON'T KNOW, NOT DESIRE, BUT DOES THE, IS THE MARKET SUPPORTING SOME KIND OF MARKET RATE CONDO, ROW HOME STYLE? WOULD THAT BE FEASIBLE AS WELL? MM-HMM.
IT'S MORE SO THE SITE CONSTRAINTS.
UM, WHEN WE'RE LOOKING AT WHAT ARE KIND OF THOSE AVAILABLE BIG PLAYERS TO REALLY LOOK AT IN TERMS OF REDEFINING OR RE-IMAGINING, THERE IS DEFINITELY ROOM FOR IT.
AND I THINK IN SOME OF THE ITERATIONS THAT WE HAD, UM, TOWN HOMES WERE INCLUDED.
UM, I CAN LET YOU TOUCH ON THAT TOO.
WELL, I THINK SOME OF THE, THE CHALLENGES HERE IS BECAUSE OF THE SEPARATE, UH, UH, PARCEL OWNERSHIPS, BECAUSE OF THAT YOU LOSE, UM, UH, UH, EFFICIENCY IN PARKING.
I THINK THAT'S THE BIGGEST CHALLENGE.
IF YOU'RE ABLE TO, I THINK, FIND, UM, UH, CONSOLIDATED OWNERSHIP OVER TIME, I THINK THAT'S WHERE YOU CAN BASICALLY GET MORE EFFICIENT PARKING.
IT ALLOWS FOR DIFFERENT TYPES OF RESIDENTIAL PRODUCT.
I THINK BECAUSE WE HAD TO HAVE EACH OF THE INDIVIDUAL INDEPENDENT PARCELS PARK, YOU KNOW, AT ITS OWN RATIOS, THE ONLY WAY TO REALLY DO THAT WAS WITH DECK PARKING.
AND THAT'S WHY THERE'S MORE OF THE MULTI-FAMILY PRODUCT SENSE HERE.
IT'S, IT'S THE LAYOUT OF OWNERSHIP THAT PROVIDES THE CONSTRAINTS.
MR. ORTIZ, JUST, THIS IS REALLY A HIGH LEVEL MM-HMM.
AS WE START DRILLING DOWN, AND, AND WE'LL PROBABLY TALK ABOUT THIS AS WE CONCLUDE, WE DRILL DOWN AND TALK TO DEVELOPERS AND LOOK AT INDIVIDUAL PARCELS.
THERE MAY BE A DEVELOPER THAT SAYS, YOU KNOW WHAT? IT MAKES MORE SENSE FROM A MARKET PERSPECTIVE TO DO TOWN HOMES.
SO WHAT YOU SEE HERE, NOT, NOT, ISN'T NECESSARILY WHAT WILL BE BUILT.
IT'S REALLY MORE OF THE VISION OF WHAT COULD BE BUILT AND THEN DRILLING DOWN, THEN THE REAL PRODUCT WILL COME FORWARD.
[01:15:01]
SURE, SURE.JUST WANNA MAKE SURE THAT TOWN HOMES THAT WE DIDN'T, WHERE THOSE WRITTEN OFF, AND IF THEY WERE WHY, BUT IT SOUNDS LIKE THEY'RE NOT, IT'S JUST, UH, PART OF THE MIX IS WHAT IT SOUNDS LIKE.
UM, THE GAP FUNDING STRATEGIES QUESTION IS, WOULD THAT REFER TO SOME KIND OF SALES TAX SHARE REVENUE? IS THAT, IS THAT A METHOD? OR IS THERE ANY OTHER METHODS THAT WE COULD POTENTIALLY IMPLEMENT? RIGHT.
SO YOU, YOU HAVE, UM, SOME TOOLS AT YOUR DISPOSAL.
UM, WE'VE KIND OF TALKED ABOUT THEM VERY HIGH LEVEL AT THIS POINT.
IT WAS NOT THE FOCUS OF THE STUDY.
UM, SO IT'S A GREAT QUESTION AND SEGUE TO THE SLIDE THAT, THAT STEVE WAS GONNA TALK ABOUT AT THE END, WHICH ESSENTIALLY IS WHAT ARE THOSE POTENTIAL NEXT STEPS THAT YOU WOULD DO? BUT OBVIOUSLY FIGURING OUT WHAT IS THE PROJECT, HOW DO YOU NEGOTIATE WITH THE VARIOUS LANDOWNERS? AND THEN WHAT ARE THE TOOLS THAT YOU HAVE IN YOUR TOOLBOX TO AFFECT THAT CHANGE? ALL THOSE THINGS HAVE TO BE FIGURED OUT.
AND SO THERE'S WHAT I CALL SAUSAGE MAKING
AND OF COURSE, IF YOU DON'T DO ANYTHING, THAT'S A CHOICE TOO.
AS STEVE WAS SAYING OR WAS SAYING BEFORE OUR MEETING TODAY, THAT'S A CHOICE.
BUT THE CHOICE TO MOVE FORWARD INTO THAT SAUSAGE MAKING IS PROBABLY WHAT WE WOULD STRONGLY RECOMMEND.
I WAS JUST TO, JUST TO ADD, ADD TO THAT, ROBIN MENTIONED, YOU KNOW, DOING NOTHING.
I MEAN, THE RESULTS, YOU KNOW, WE BELIEVE OUR FAIRLY CERTAIN VACANCY WILL CONTINUE TO DECREASE VISITATION, WILL, YOU KNOW, CONTINUE TO DECLINE, AND THERE WILL BE FEWER HIGH QUALITY TENANTS.
IT'S OUR FIRM BELIEF THAT A COORDINATED REDEVELOPMENT PLAN GREATLY INCREASES THE CHANCE OF A SUCCESSFUL DEVELOPMENT.
WE THINK 5 0 5 HAS DONE A GREAT JOB OF PUTTING TOGETHER SOME VERY INSPIRATIONAL IMAGES.
UM, YOU KNOW, THERE'S A MAR YOU KNOW, LEXIE HAD TALKED ABOUT THE MARKET DEMAND.
THERE'S A DEMAND FOR THINGS THAT WILL GENERATE VISITATION.
AND WE BELIEVE THAT A, YOU KNOW, A REIMAGINED PARKWAY PLAZA WILL RESULT IN SOME SUBSTANTIAL ECONOMIC BENEFITS.
AGAIN, YOU SAW THE SORT OF NUMBERS, AND SO WE THINK THAT TEES ITSELF UP FOR SOME GREAT THINGS MOVING FORWARD.
UH, JUST THINKING ABOUT WHAT THE NEXT STEPS, YOU KNOW, WHAT YOU ALL MIGHT CONSIDER, UH, YOU KNOW, WE'VE GOTTA START ON CREATING A REDEVELOPMENT STRATEGY, BUT A BIG FOCUS IS ON AN IMPLEMENTATION PLAN THAT'S FOCUSED ON DELIVERING THE VISION.
SO, SO YOU ALL, AND YOU KNOW, PARKWAY PLAZA IS AT THIS PLACE RIGHT NOW.
THERE'S A VISION OF WHERE IT NEEDS TO BE.
UH, A BIG PART OF IT IS EVALUATING PHASE DEVELOPMENT OVER TIME.
THAT ACCOUNTS FOR DIFFERENCES IN THE MARKET, THE MARKET DEMAND FOR DIFFERENT PRODUCTS, BUT IT ALSO LOOKS AT THE CONSTRAINTS FROM THE DIFFERENT LANDOWNERS.
AND, AND THAT CLEARLY IS SOMETHING THAT MAKES THIS CHALLENGING.
UH, AND IT WOULD BE A LOT OF WORK, UH, TO ACCOMPLISH.
IT REQUIRES A LOT OF LEADERSHIP.
PART OF THAT IS ABOUT DEVELOPING MORE DETAILED FINANCIAL ANALYSIS.
UH, A BIG PART OF IT IS ALSO LOOKING AT AND UPDATING THE ECONOMIC AND FISCAL IMPACTS AS YOU GO THROUGH THINGS.
IT, IT'S ALSO, AND, AND ROB WAS TALKING ABOUT SOME OF THE, YOU KNOW, THE INCENTIVES THAT MIGHT BE AVAILABLE.
IT'S REALLY TAKING A HARD LOOK AT, UH, YOU KNOW, THE ECONOMIC TOOLS THAT ARE AVAILABLE THAT CAN SERVE AS INCENTIVES, OTHER TOOLS THAT YOU MAY HAVE AVAILABLE TO HELP, YOU KNOW, CREATE, UH, A SHARED VISION FOR WHAT CAN HAPPEN.
AND TO REALLY GET A COMMITMENT ON THE PART OF EVERYTHING FOR A HOLISTIC DEVELOPMENT PLAN.
AND, AND A BIG PART OF DELIVERING THIS IS REALLY CONTINUED AN ONGOING DISCUSSION WITH, YOU KNOW, THE STAKEHOLDERS AND, AND THE FOLKS THAT OWN LAND TO, WITH, WITH THE FOCUS ON ACTION.
UM, YOU KNOW, THE, THE EFFORTS TO DATE HAVE BEEN ABOUT INFORMING, YOU KNOW, WHAT YOU'VE ALL SEEN HERE.
BUT REALLY, YOU KNOW, I, I MEAN, AND I ALWAYS SAY THIS, YOU KNOW, PLANS ARE NEAT.
THE THE DRAWINGS THAT, YOU KNOW, CARL HAD PUT TOGETHER ARE, THEY'RE COOL, BUT WHAT PEOPLE REALLY WANT TO SEE IS SOMETHING BUILT.
AND, AND IT'S REALLY IN THE NEXT, YOU KNOW, PHASE WHEN ALL OF THAT REALLY HAPPENS.
AND IT'S THE HARD WORK OF DELIVERING A VISION.
AND, UH, MY LAST QUESTION, WHAT, IS THERE ANYTHING OTHER THAN THE TOOLS IN THE TOOLBOX THAT COULD WE, WE CAN BE READY TO INCENTIVIZE OR CAST VISION, IS THERE ANYTHING WE, WE AS A CITY CAN DO TO MAKE THIS PROPERTY MORE APPEALING TO DEVELOPERS? UH, WITH REGARD TO ZONING OR, OR THINGS, THINGS OF THAT NATURE? 'CAUSE AS A CITY, WE RECOGNIZE THAT WITH THESE, WITH DEVELOPERS, CITIES ARE ESSENTIALLY COMPETING FOR CAPITAL, FUNDING FOR PROJECTS ALL OVER THE STATE AND IF NOT THE COUNTRY.
AND SO WE NEED TO LOOK BETTER AND MORE APPEALING TO THESE DEVELOPERS AS SAN ANTONIO OR VIRGINIA OR THESE OTHER PLACES THAT YOU GUYS HAVE DONE THAT, DONE RESEARCH IN OTHER WORK.
[01:20:01]
WHAT COULD WE DO AS A CITY TO, TO SET OURSELVES APART FROM THESE OTHER SITES? IF YOU HAVE ANY SUGGESTIONS, UH, YOU KNOW, I, THE, THE ANSWER IS THERE ARE OTHER THINGS.AND YOU REFERRED TO, YOU KNOW, ZONING AND THERE ARE THE FINANCIAL TOOLS, BUT THERE ARE OTHER SORT OF NON-FINANCIAL THINGS.
AND THAT'S PART OF WHAT NEEDS TO BE LOOKED AT, IS TO LOOK AT WHAT YOU ALL HAVE AVAILABLE TO YOU, BUT ALSO LOOK AT WHAT MAY RESONATE TO THE DIFFERENT LANDOWNERS.
AND IT, AND IT'S REALLY TRYING TO CREATE A CIRCUMSTANCE WHERE EVERYBODY SEES THE VALUE OF THE POSITIVE OUTCOME.
AND, AND, YOU KNOW, THERE ARE DIFFERENT THINGS THAT EACH PARTY CAN BRING TO THE TABLE TO HELP FACILITATE THAT.
SO IT'S REALLY, IT, IT'S REALLY ABOUT GETTING INTO THE DETAILS.
AND THAT'S THE HARD PART OF ALL OF THIS.
THE FACT THAT YOU'RE DOING WHAT YOU'RE DOING IS AN INCENTIVE.
THE FACT THAT YOU MAY THEN CONTINUE, UH, LOOKING AT BUSINESS PLANNING AND WORKING WITH THE LANDOWNERS.
MOST CITIES DO NOT DO THIS FOR STRUGGLING PROPERTY AND PROPERTY OWNERS, ALL OF THESE FOLKS ARE IN A BIT OF A BIND, AND THEY'RE LOOKING FOR A WAY OUT, RIGHT? FOR, FOR MANY OF THEM.
AND SO THE FACT THAT YOU'RE AT THE TABLE WORKING HARD TO FIGURE OUT SOLUTIONS, UM, IN THEIR BRAINS, A LOT OF TIMES, UM, YOU KNOW, THEY KNOW THEIR LANE.
AND SO ANYTHING OUTSIDE OF THAT THAT'S TOO CREATIVE MIGHT FREAK 'EM OUT A LITTLE BIT.
BUT, UH, YOU CAN HELP MITIGATE THAT BY SAYING LIKE, HEY, WE'RE HERE TO HELP MAKE THIS HAPPEN AS BEST WE CAN WITH THE TOOLS WE HAVE.
AND THE FACT THAT YOU'RE AT THE TABLE DOING THAT IS, IS PART OF THAT SORT OF NON-MONETARY SENSE.
AND THAT'S, AND THAT'S NOT TYPICAL.
AND THAT REALLY DOES DEMONSTRATE, YOU KNOW, LEADERSHIP.
AND IT DEMONSTRATES A COMMITMENT ON ALL OF YOUR PART FOR, YOU KNOW, THE, THE VALUE OF THE, THE ASSET TO THE COMMUNITY, BECAUSE YOU ALL HAVE THE, THE GREATEST VESTED INTEREST IN ITS OUTCOME.
THAT'S, THAT'S, YOU'VE DONE VERY WELL FOR THE PUBLIC.
I'VE GOT SEVERAL QUESTIONS, SO IF YOU COULD KEEP YOUR RESPONSES KIND OF SHORTER, WE CAN ALL, UH,
UM, AT THE TABLE, YOU MENTIONED, ONE OF THE THINGS AT THE TABLE IS THIS BANKRUPTCY SITUATION WITH ISRAEL BOHO, WHICH I BELIEVE IS ONE OF THE BIGGEST, UH, SITUATIONS.
UM, SO THE, THE VALUE THAT WE'RE TRYING TO CREATE HERE IS TO, TO SAY TO THAT BANKRUPTCY TRUSTEE, HERE'S A PACKAGE, A VISION OF WHAT WE HAVE FOR THIS.
YOUR CREDITORS WILL GET MORE PENNIES ON THE DOLLAR RETURNED THAN TRYING TO FIGHT IT OUT ON THEIR OWN.
SO THAT'S, THAT'S ONE OF THE GREAT OUTCOMES OF THIS IS TO, TO, TO INCENTIVIZE THAT CREDITOR TO SAY, YOU HAVE A PLAN.
LET'S GO BACK TO SLIDE SEVEN IF WE COULD.
UH, YOU TALKED ABOUT DIFFERENT LANDOWNERS, AND WE'VE HEARD THIS BEFORE, LIKE, OH, IT'S KIND OF TOUGH THAT WE HAVE DIFFERENT LANDOWNERS TRYING TO GET EVERYBODY TOGETHER.
I ACTUALLY THINK THIS IS AN OPPORTUNITY, AND HERE'S WHY.
IN THE SAME WAY THAT WE'VE DONE WITH, UM, HOTELS IN YEARS PAST, WE CAN INCENTIVIZE ANY ONE OF THESE LANDOWNERS TO SAY, WHO'S FIRST TO REDEVELOP? AND WE DON'T NEED YOU ALL TO GET TOGETHER TO AGREE.
BECAUSE LOGIC SAYS TO ME, THE FASTER WE CAN GET SOMETHING UP, THE OTHERS WILL FOLLOW.
OH, WE CAN'T SIT THIS ONE OUT.
WE'RE GONNA LOOK OLD AND AGED IF WE DON'T FOLLOW WHAT THAT, SO I'M THINKING, YOU KNOW, MAYBE ONE OF THESE SMALLER LANDOWNERS MAY BE THE ONES THAT WE INCENTIVIZE TO SAY, WILL YOU BE THE PIONEER IN THIS AREA? WILL YOU BUILD HOUSING? BECAUSE HOUSING TO ME, DRIVES THE NEED FOR PRODUCTS AND SERVICES.
SO ANY KIND OF PROJECT THAT WE HAVE MUST HAVE HOUSING FIRST.
AND HOW DO WE DO IT FAST? SOME OF THESE, AS YOU, UH, PRESENTED IN SLIDE 20, I THINK IT WAS THE SEARS PROPERTY, UH, THE JC PENNY PROPERTY, WHAT'S UNUSUAL HERE, AND THIS VERY FEW PEOPLE, THE CITIES HAVE THIS OPPORTUNITY.
WE'VE GOT THIS PARKING STRUCTURE FOR HUNDREDS OF CARS, AND WE STILL HAVE A TON OF LAND FOR HUNDREDS OF CARS.
MOST PLACES DON'T HAVE THAT COMBINATION.
IN OTHER WORDS, WE COULD GIVE, WE COULD BUILD ON THAT PARKING AND STILL HAVE THE PARKING STRUCTURE.
SO WE DON'T HAVE TO, WE'RE ALREADY A STEP AHEAD, IS WHAT I'M THINKING.
UM, COUNCILMAN ORTIZ ANSWERED MY QUESTIONS ABOUT THE APARTMENTS.
NOW HERE'S, HERE'S ONE OF THE KEYS.
LET'S GO BACK TO THE SLIDE ON THE FUNDING GAP.
IT MIGHT HAVE BEEN SLIDE 28, UH, 55%.
SO YOU'RE SAYING IF WE DO MARKET RATE HOUSING, WE'RE GONNA NEED
[01:25:01]
TO COME UP WITH 45% OF THE COST OF THE PROJECT, THAT THE, THAT THE MARKET WILL ONLY COME UP WITH 55%.HOW DO I UNDERSTAND THAT? SO THIS IS A LEVEL OF PRODUCT THAT IS A STEP ABOVE WHAT EXISTS CURRENTLY.
SO YES, IF YOU LET THE MARKET JUST DO ITS THING, UH, YOU'RE GONNA GET, YOU KNOW, MAYBE A, A LOWER, UH, QUALITY, MAYBE MORE STICK.
AND IN TERMS OF COST FOR DIFFERENT TYPES OF PRODUCTS, AS YOU DO SOMETHING A LITTLE MORE SUBSTANTIAL, AGAIN, ALSO MORE VERTICAL WITH PARKING INCLUDED, IT'S GONNA BE A HIGHER COST, BUT IT'S ALSO GONNA BE A HIGHER VALUE OVER TIME.
SO I THINK OUR GOAL HERE IS DENSITY AND GOING MORE VERTICAL VERSUS HORIZONTAL.
SO I THINK THAT'S, YOU KNOW, AGAIN, IT'S SORT OF AN INVESTMENT IN YOUR FUTURE TO DO IT THAT WAY.
AND I AGREE, I THINK, UH, WE ARE THE ONLY CITY AMONG THE 18 IN THE COUNTY, I BELIEVE THAT DOES NOT CHARGE A DEVELOPMENT IMPACT FEE.
UH, ONE OF THE LARGER CITIES TO OUR WEST, IT'S 20 TO $40,000 PER UNIT.
SO I KNOW AT THE MTS PROPERTY WHERE, WHERE WE GOT STUCK, UH, WE LOST STATE TAX CREDITS AND GRANTS THAT THEY WERE COUNTING ON TO BUILD THOSE TWO TOWERS.
UH, IN THIS SENSE, IF, WHERE WOULD THE GAP FINANCING COME FROM? BECAUSE TYPICALLY GOVERNMENT FINANCING IS GOING IN CALIFORNIA IS GOING TO BE FOR AFFORDABLE HOUSING.
WHERE WOULD GAP FINANCING COME FROM IN MARKET RATE HOUSING? RIGHT.
SO AGAIN, UH, WHEN WE TYPICALLY SEE THESE, THE, THERE ARE A NUMBER OF THINGS THAT CAN BE COUNTED.
AND AGAIN, I'M NOT A, AN ATTORNEY, SO I'M NOT GIVING LEGAL ADVICE, BUT, UH, OFTENTIMES THINGS THAT CAN COUNT AS INFRASTRUCTURE, SUCH AS PARKING FOR THE RESIDENTIAL COULD BE SOMEHOW FIGURED OUT POTENTIALLY.
AGAIN, THAT'S THE NEXT SAUSAGE MAKING PHASE IS TRYING TO FIGURE ALL THAT OUT.
BUT, UM, THAT IS ONE WAY TYPICALLY THAT THE PUBLIC SECTOR CAN ASSIST IS SORT OF, UM, SITE PREP, UTILITIES, GARAGES, THOSE KINDS OF THINGS.
SO THINGS AROUND THE HOUSING THAT MAKE IT PART OF THE YEAH.
THAT'S WHERE THE CITY COULD PARTICIPATE.
BECAUSE I THINK THAT AREA IS IN THE ENTERPRISE ZONE, IS THAT RIGHT? I THINK IT'S OUTSIDE THE ENTERPRISE ZONE.
WE WILL GET IT INSIDE THE ENTERPRISE
UH, WE WILL PASS A RESOLUTION THAT IT IS NOW, YOU KNOW, I DON'T KNOW, BUT THAT'S, I, I HEAR WHAT YOU'RE SAYING THERE.
I'M THINKING HOUSING, HOUSING, HOUSING HAS TO COME FIRST BECAUSE THAT'S WHAT DRIVES THE NEED, NEED, NEED FOR PRODUCTS AND SERVICES.
AND I THINK THE OPPORTUNITY IS WITH THE SMALLER LANDOWNERS, BECAUSE THE BIG LANDOWNER STILL HAS SOME ISSUES TO WORK OUT.
UH, I'M VERY INTRIGUED WITH THIS.
UH, THANK YOU SO MUCH FOR ALL THE WORK YOU HAVE DONE.
UH, I THINK WE NEED TO DO SOMETHING WITH THAT MALL.
'CAUSE IT MAY END UP LIKE MANY OTHER MALLS THAT BECOME DEFUNCT, AND THAT'S ONE OF OUR MAJOR SALES TAX GENERATORS, AND WE DON'T WANT THAT TO HAPPEN.
UH, HOW MUCH OF AN IMPACT WOULD THE PROPOSED RESIDENTIAL HAVE ON THE RETAIL THAT, THAT'S INSIDE THE MALL? IS IS THAT SUBSTANTIAL, INSIGNIFICANT, OR A LITTLE BIT.
SO I, IT'S, IT'S PROBABLY MORE OF A BIGGER REPUTATIONAL IMPACT THAN AN ACTUAL DOLLAR AND CENTS IMPACT.
BECAUSE IF YOU THINK ABOUT THE, THE TRUE TRADE AREA OF THIS MALL, YOU KNOW, IT'S, IT'S HUNDREDS OF THOUSANDS OF PEOPLE, RIGHT? AND SO YOU'VE, YOU KNOW, WHATEVER YOU DEVELOP ON SITE, PROBABLY A DROP IN THE BUCKET RELATIVE TO THE TOTAL VISITATION.
BUT BECAUSE THEY'RE ON SITE, THEY'RE GONNA BE VISITING PROBABLY TWO OR THREE TIMES A WEEK VERSUS ONCE A MONTH.
SO YOU'RE GONNA HAVE MUCH MORE, UM, UH, CONSISTENCY OF VISITATION, UM, AND IT, IT STARTS TO BUILD UP THAT WALKABILITY.
SO IF YOU'RE FILLING IN THE DENSITY, YOU'RE CREATING ALMOST A NEIGHBORHOOD AND AN ACTIVE LIVE WORK PLAY ENVIRONMENT, WHICH YOU JUST DON'T REALLY HAVE RIGHT NOW.
IT'S VERY MUCH A TRADITIONAL MALL FROM WHEN I WAS BORN 50 YEARS AGO.
SO, UM, IT WASN'T, BUT IT SEEMS THAT WAY.
UM, SO, SO YEAH, IT, WHILE THE NUMBER OF HOUSING UNITS PROBABLY WOULDN'T MOVE THE NEEDLE IN TERMS OF THE TOTAL TRUE TRADE AREA OF THE MILLIONS OF VISITS PER YEAR, UM, WHAT IT DOES, I THINK IMPACT REPUTATIONALLY AND THE VISUAL FOR, UH, CREATING THAT LIVE WORK PLAY ENVIRONMENT, I THINK IS, IS ABSOLUTELY CRITICAL.
AND, AND JUST TO ADD THAT SOME OF IT IS ALSO PSYCHOLOGICAL.
THERE ARE PEOPLE THERE, PEOPLE LIKE TO SHOP AND GO TO PUBLIC PLACES WHERE OTHER PEOPLE ARE.
AND SO IF YOU HAVE PEOPLE THAT ARE LIVING THERE, IT, IT CREATES A BETTER ENVIRONMENT FOR EVERYBODY.
AND THAT'S THE WHOLE POINT OF DOWNTOWNS AND CITIES AND LIVE WORK AND PLAY IS THERE'S JUST A SOCIAL INTERACTION.
AND THAT, THAT'S A BIG PART OF WHAT GIVES DEVELOPMENTS LIKE, LIKE WHAT THIS COULD BE THE SORT OF CHARACTER
[01:30:01]
AND CHARM THAT, THAT EVERYONE'S LOOKING FOR.UM, I IMAGINE THE CITY WILL HAVE TO CONTRIBUTE TO THIS PROCESS.
HOW DO YOU SEE THAT EVOLVING? UH, SO IF, IF WE HAD TO RECOMMEND NEXT STEPS, WE'D HAVE THIS HANDY SLIDE HERE FOR YOU THAT, UM, TALKS ABOUT THAT.
AND, AND REALLY IT'S AT THIS STAGE, UM, SEVERAL THINGS NEED OR WANT TO HAPPEN IN TANDEM.
SO YOU HAVE TO FIGURE OUT SORT OF THESE VARIOUS DESIGN SOLUTIONS THAT SORT OF GET TO THE COMPETITION FOR WHO'S GONNA GET THE CITY'S LARGE S FIRST, RIGHT? AND SORT OF MAKE THAT A COMPETITIVE THING.
BUT, YOU KNOW, DEPENDING ON HOW THAT SHAKES OUT, WE NEED DIFFERENT PLANS THAT HAVE DIFFERENT PHASING TO THEM.
WE ALSO NEED TO SEE HOW THAT FUNDING SHAKES OUT.
AT THE SAME TIME, WE HAVE TO FIGURE OUT THE TOOLS IN THE TOOLBOX ON THE FINANCING SIDE.
SO THERE ARE A LOT OF THINGS THAT NEED TO COME TOGETHER, AND THEN YOU HAVE TO NEGOTIATE WITH THE PARTIES.
SO, YOU KNOW, TO, TO US, WHEN WE END A STUDY AND WE SEE THAT A CITY IS READY TO SORT OF GRAB THE BATON AND GO THE NEXT, UH, ROUND AROUND THE TRACK, UH, TO MAKE THIS HAPPEN, UM, IT'S, IT'S NOT AS SIMPLE AS A STUDY PROCESS, WHICH IS, OKAY, THIS WAS DONE IN, YOU KNOW, FIVE, SIX MONTHS AND BOOM, WE HAVE THIS BEAUTIFUL PRODUCT.
THIS, I CALL IT SAUSAGE MAKING BECAUSE IT'S A LITTLE BIT MESSY AND A LOT OF THINGS ARE HAPPENING AT THE SAME TIME.
BUT I THINK, UM, IF, YOU KNOW, IT IS A TYPICALLY A SORT OF A MONTH TO MONTH PROCESS TO SAY, THESE THINGS NEED TO HAPPEN DURING THIS PROCESS OF THIS PHASE.
AND BY THE END WE WANT TO HAVE THESE THINGS FIGURED OUT.
WHAT'S THE PROJECT? WHO'S ON FIRST? WHO'S GETTING WHAT MONIES, WHAT'S THE TERM SHEET? AND SO THEN BY THE END OF THAT PHASE, YOU HAVE A VERY DISTINCT PROJECT WITH THE TIMELINE AND PLAYERS THAT THEN YOU CAN WORK OUT ALL THE NITTY GRITTY REDEVELOPMENT DETAILS, BUT AT LEAST YOU'D HAVE SORT OF THOSE TERMS SET YEAH.
A A FRAMEWORK OF HOW TO MOVE FORWARD.
SO, UM, THIS IS OPEN UP TO STAFF AND YOUR TEAM.
UM, SO I, I ASSUME THAT THERE'S GONNA BE LIKE MULTIPLE NEGOTIATIONS HAPPENING SIMULTANEOUSLY AND A LOT OF BACK AND FORTH.
UM, DOES THAT MEAN THAT THERE'LL BE A, A TASK FORCE FROM OUR CITY THAT'S GONNA WORK IN TANDEM WITH GO TO THE MEETINGS AND BE PART OF THOSE NEGOTIATIONS? OR WOULD YOU BE BRINGING BACK PROPOSALS TO THE CITY AND THEN GETTING A GREEN LIGHT? SO WE WOULD REPRESENT IF, IF WE WERE DOING THIS ON YOUR BEHALF, WE WOULD REPRESENT YOUR BEST INTEREST.
BUT, BUT VINCENT GRAHAM WOULD BE RIGHT THERE AS PART OF THE TEAM.
I MEAN, ULTIMATELY YOU ARE THE DECISION MAKERS, SO WE ARE JUST REPRESENTING YOUR BEST INTEREST, YOU KNOW, IF, IF WE'RE, UH, SO FORTUNATE TO DO THAT ROLE.
SO YES, I THINK STAFF WOULD ABSOLUTELY BE INVOLVED, AND WE'D BE EDUCATING 'EM ALONG THE WAY ABOUT HOW BEST TO SET UP THE PSYCHOLOGY AS, UM, COUNCIL MEMBERS.
UH, GOBEL WAS TALKING ABOUT TO MAKE THIS SORT OF A COMPETITIVE EVENT SO THAT PEOPLE SAY LIKE, HEY, IF I WANT MY CARROT AND NOT THE STICK, I WANT TO BE FIRST IN LINE.
AND, AND THIS IS A QUESTION I'M ASSUMING THAT YOU ARE NOT PREPARED TO ANSWER QUITE YET, BUT WE'RE LOOKING AT, I THINK 30, ABOUT $10 MILLION A YEAR IN, UH, INCREASED REVENUES TO THE CITY, AS IF EVERYTHING WENT WELL.
HOW MUCH WOULD THAT PROBABLY COST US IN TERMS OF PROVIDING MORE POLICE AND FIRE AND SERVICES? I, I DON'T THINK WE'VE RUN THOSE, THAT LEVEL OF DETAIL.
WE'RE, WE'RE, WE'RE GETTING SOME OF THE FINANCIALS JUST RECENTLY, SO, WE'LL, WE'LL TALK ABOUT THAT LATER.
WE'LL HAVE TO FIGURE THAT OUT AT SOME POINT.
I I THINK IT'S A GREAT, UH, GREAT THING.
WELL, UH, I KNOW ONE OF THE FEW TOOLS LEFT IN OUR TOOLBOX SINCE, UH, REDEVELOPMENT WENT AWAY, UH, IS FOR THE CITY TO DO SOME OF THOSE, UH, INFRASTRUCTURE IMPROVEMENTS.
UH, UH, ANY IDEA HOW BIG AN INVESTMENT THAT WOULD BE? LET'S SAY IF WE DID THE RESIDENTIAL PART FIRST TO SWEETEN THE POT A LITTLE BIT? I, I, COUNCIL MEMBER.
YEAH, I THINK THAT'S REALLY PART OF THOSE NEXT STEPS.
LET, LET ME, LET ME JUST KIND OF BRING IT BACK AROUND.
I, I, I THINK ROB HUNTIN AND HIS GROUP HAVE DONE A TREMENDOUS JOB KIND OF SUMMARIZING EVERYTHING.
AND SO THERE'S A COUPLE OF OPTIONS THAT THE COUNCIL NOW NEEDS TO CONSIDER.
UM, YOU CAN SIMPLY RECEIVE THE REPORT.
UM, THERE'S SOME DIRECTION THAT YOU CAN PROVIDE TO ANSWER YOUR QUESTION DIRECTLY, MR. KENDRICK, WE ALREADY HAVE A CONTRACT WITH COSMO AND ASSOCIATES TO HELP BY CREATING, UM, AN EIFD, AN ENHANCED INFRASTRUCTURE FINANCING DISTRICT SPECIFIC FOR PARKWAY PLAZA SPECIFIC TO BE AN IMPLEMENTATION TOOL FOR THIS VISION.
OKAY? WE CAN GO FORWARD WITH THAT AS ONE OF THOSE MANY,
[01:35:01]
MANY POINTS THAT ROB MENTIONED AS A SAUSAGE MAKING POINT.BUT IT'S ABSOLUTELY NECESSARY, AND IT WILL CONTRIBUTE TO THE, TO THE GAP THAT ROB HUNTIN WAS MENTIONING AND LEXI WAS MENTIONING IN HER PRESENTATION.
SO THAT'S, THAT'S ONE POINT, OBVIOUSLY IF WE HAD REDEVELOPMENT AND, AND OR PERHAPS WE'RE IN A DIFFERENT STATE, THAT GAP WOULD BE ACCOMMODATED THROUGH TAX INCREMENT FINANCING.
SINCE WE DON'T HAVE THAT, THERE NEEDS TO BE AN ANALYSIS, A FUTURE ANALYSIS ABOUT HOW BEYOND THE EIFD, HOW WE GET TO THAT GAP, HOW WE FILL THAT GAP, HOW, HOW WE GET THAT MEZZANINE LEVEL OF, OF FINANCING.
THE COUPLE OF OTHER STEPS YOU CAN DIRECT US TO TAKE, WE CAN MOVE BEYOND THE ASPIRATIONAL IN, IN TERMS OF THE VISION THAT YOU SAW AND START IMPLEMENTING THIS THROUGH OUR LAND USE CONTROLS.
OKAY? SO WE CAN LOOK AT WHAT OUR CURRENT ZONING REQUIREMENTS ARE, IF YOU LIKE THE VISION YOU'VE SEEN, WE CAN DRILL DOWN ON THAT VISION EVEN MORE SPECIFICALLY, UH, BY USING THE 5 0 5 GROUP AND, AND, UM, CREATE A MORE DETAILED SPECIFIC PLAN AND IMPLEMENT THAT PLAN THROUGH OUR LAND USE CONTROLS.
THAT'S, THAT'S A THING THAT CAN COME NEXT PART OF THE SAUSAGE MAKING PROCESS BY DOING THAT INTERRUPT.
BUT DO YOU HAVE, HOW MUCH WOULD THAT COST TO, TO IMPLEMENT THAT? WE WOULD, WE WOULD BRING THAT BACK TO YOU.
WE, WE WOULD BRING ALL THAT BACK TO YOU.
AND A GREAT, A GREAT PORTION OF THAT CAN BE DONE IN HOUSE BECAUSE A LOT OF OUR, A LOT OF OUR SPECIFIC PLANS HAVE BEEN DONE IN HOUSE BY THE COMMUNITY DEVELOPMENT DEPARTMENT.
SO WE CAN, WHILE WE GIVE MORE LIFE TO THAT VISION AND GIVE GREATER DETAIL TO THE VISION, WE CAN THEN WORK IN CONJUNCTION WITH COMMUNITY DEVELOPMENT TO SEE, UM, IF DO WE NEED, DO WE NEED ANOTHER CONSULTANT OR CAN THE CONSULTANTS THAT WE HAVE, UM, ACCOMPLISHED THAT JOB? AND IF, IF WE HAVE A NEED FOR ADDITIONAL CONSULTANTS, WE'LL BRING THAT BACK TO YOU, MAYOR.
UM, THE OTHER THING WE CAN DO IS, AS ROB HUNTON POINTED OUT A REDEVELOPMENT PLAN, UM, WHICH HE JUST BASICALLY SUMMARIZED THAT TALKS ABOUT ALL THE STEPS, UH, THAT NEED TO BE TAKEN OUTSIDE THE LAND USE CONTROLS OUTSIDE THE EIFD, EVERYTHING THAT NEEDS TO BE TAKEN SEQUENTIALLY.
AND THAT WOULD BE A PLAN THAT A GROUP LIKE H WOULD, WOULD DO, WOULD PERFORM.
UM, THE OTHER, THE OTHER THING TO ADDRESS MR. GOEBBELS COMMENTS IS WE HAVE, WE HAVE TWO IN CAP PROPERTY OWNERS, WHICH ARE INTERESTED IN IMPLEMENTING THIS VISION, BUT THE STARWOOD, UH, PACIFIC RETAIL GROUP HAS A DIFFERENT, THEY, THEY HAVE A DIFFERENT MINDSET.
THEIR GOALS AND THEIR VISION DOESN'T NECESSARILY ALIGN WITH DI THIS VISION OKAY.
AND THAT THERE'S REASONS FOR THAT.
AND THERE'S ALSO CCNRS AND DIFFERENT INSTRUMENTS IN PLACE THAT ALLOW THEM TO VETO CERTAIN DEVELOPMENTS THAT THE END CAPS ARE TRYING TO DO.
SO THE BEST THING THAT WE CAN DO, THAT'S PART OF ONE OF THE BEST THINGS WE CAN DO IN THAT SAUSAGE MAKING PROCESS.
THAT'S PART OF THE REDEVELOPMENT PLAN, IS GET SIGNIFICANT LEVEL OF EXPOSURE, UH, TO THE PRIVATE SECTOR, UH, OF THAT STARWOOD PIECE.
BECAUSE THEY, THEIR VISION IS NOT A LONG-TERM VISION.
LIKE THE TWO END CAPS ARE, THEIR VISION IS MORE OF A LESS THAN FIVE YEARS VISION.
SO WITH THAT IN MIND, THE CONSTRAINTS THERE ARE, HOWEVER, THAT THIS PIECE OF PROPERTY, THE STARWOOD PROPERTY IS TIED UP WITH FOUR OTHER PIECES OF PROPERTY.
IT'S IN A FINANCING PACKAGE THAT'S TIED UP WITH FOUR OTHER PIECES OF PROPERTY.
IF WE COULD AGGRESSIVELY GET THIS BEFORE THE PEOPLE WHO NEED TO SEE IT IN THE PRIVATE SECTOR, INVESTORS, DEVELOPMENTS, DEVELOPERS OF A LARGE SCALE, AND SOMEHOW GET THEM INTERESTED TO NEGOTIATE A DETACHMENT OF THIS PIECE SO THAT THEY CAN DEAL WITH FUTURE DEVELOPMENT OF THAT SEPARATE FROM THE OTHER STARWOOD PACIFIC RETAIL HOLDINGS, THAT, THAT MAY, THAT MAY FACILITATE DEVELOPMENT IN, IN A, IN A QUICKER TIMEFRAME.
SO THAT'S PART OF THE PROCESS, THAT'S PART OF THE REDEVELOPMENT PLAN, IS HAVING DEN WORK WITH US, HAVING THE CITY BE ENGAGED IN, IN GETTING THIS PARTICULAR PROPERTY OUT TO THE PEOPLE WHO HAVE THE WHEREWITHAL TO TAKE IT DOWN AND TO TAKE STARWOOD OUT, WHICH IS, I THINK, ULTIMATELY WHAT THEY WANT, UM, BECAUSE THERE'S BOND HOLDERS THAT NEED TO RECOVER THEIR INVESTMENT.
SO THERE'S A NUMBER OF THINGS THE COUNCIL CAN DO.
I'M TRYING TO SUMMARIZE EVERYTHING.
UM, BUT THERE'S A NUMBER OF DI OF THINGS THAT YOU CAN DIRECT US TO DO, AND I THINK ANY ONE OF US BETWEEN MI, MR. MITCHELL AND MYSELF AND THE HUNT GROUP CAN, CAN GO OVER THOSE AGAIN IF YOU'RE INTERESTED IN PURSUING THOSE.
WOULD YOU, WOULD YOU BE THEN PURSUING, I'M ASKING THIS WITH THE WHOLE GROUP, UM, THE POSSIBILITY OF FINDING A BUYER TO PURCHASE THE STARWOOD PROPERTY? WELL, I THINK, UH, VINCE PUT IT VERY WELL.
[01:40:01]
ALL THE OPTIONS REALLY, REALLY NICELY.UH, HE MAY HAVE A FUTURE IN CONSULTING
BUT ALSO IT BEHOOVES US THEN TO THINK ABOUT OUR OWN OPTIONS TO ATTRACT SOMEONE WHO MAY HELP THEM LEAVE BENEFITING FROM THAT ABILITY TO LEAVE.
AND THEN IT ALLOWS THE END CAPS TO HAVE A, A, A PARTNER IN THE MIDDLE.
SO I THINK WE HAVE TO HAVE ALL OPTIONS ON THE TABLE.
AND THE CITY HAS OPTIONS OF THEIR OWN.
AND I THINK, UM, WE COULD POTENTIALLY CREATE A SCENARIO IN WHICH THE, THE SHORT TERM NEEDS OF THE STARWOOD PROPERTY ARE MET WHILE OUR LONG-TERM NEEDS ARE MET AS WELL, BY GETTING THAT ADDITIONAL BUYER IN.
AND NORMALLY THESE KINDS OF CONVERSATIONS HAPPEN IN EXECUTIVE SESSION, RIGHT? UH, BECAUSE WE'RE GONNA START TALKING ABOUT, YEAH, NEGOTIATING TACTICS AND SCENARIOS, BUT WHAT, WHAT, WHAT GRAHAM IS TALKING ABOUT IS, WHICH I THINK WE'RE ALL THINKING THE SAME THING, WITHOUT SAYING IT MAKES A TON OF SENSE.
THERE COULD BE A, A SHORT TERM INVESTMENT MAYBE BY THE CITY THAT THEN FLIPS AROUND AND BECOMES A LONG TERM, UH, BENEFIT.
SO, UH, JUST FOR DIRECTION AND MY PERSONAL OPINION, I, I'D LIKE TO BE AS AGGRESSIVE AS POSSIBLE WITH THIS PROPERTY.
AND AS THEY SAID IT, I FORGET WHO SAID IT IN THE BEGINNING OF THE PRESENTATION, SAID THE LAST THING WE WANT IS FOR SOMETHING, A GREAT PRESENTATION AND STUDY LIKE THIS TO START COLLECTING DUST AND SIT ON A SHELF.
SO, UM, WITH REGARD TO THE CREATION OF AN EFID, UM, AN ANALYSIS ON HOW TO CLOSE THE FINANCING GAP, UM, LOOKING AT OUR ZONING CREATION OF A REDEVELOPMENT MASTER PLAN, UM, I DON'T KNOW IF, UH, ANY ENVIRONMENTAL OR SQA IF WE CAN GET OUT AHEAD OF THAT ON BEHALF OF THAT PROPERTY TO DO AN ANALYSIS SO THE DEVELOPER DOESN'T HAVE TO.
'CAUSE I, I KNOW THAT'S VERY, UM, EXPENSIVE.
I WOULD SAY YES TO ALL OF THOSE.
THIS IS PART OF WHEN WE SET OUR GOALS FOR 2024, THIS WAS ONE OF THE GOALS.
SO IT, IT, IT IS WITHIN OUR, OUR, OUR PURVIEW TO TO HAVE STAFF.
GO DOWN THE ROAD, I THINK YOU'RE GOING, YEAH.
UM, I'M GONNA ASK IF THERE'S, UM, ANY, UH, ANYBODY WHO'S ASKED TO SPEAK ON THIS ITEM.
AND THEN WE'LL COME BACK, I'LL BRING BACK TO COUNCIL.
I WASN'T, SO WE CAN DISCUSS OPTIONS.
UM, ARE THERE SPEAKER CARDS FOR THIS ITEM? WE HAVE NO SPEAKERS ANSWER.
YOU COULD, YOU CAN RELAX AND WE'LL CALL YOU BACK UP IF WE NEED YOU.
NO SPEAKER CARDS? NO SPEAKER CARDS, SIR.
UM, THEN I WILL TAKE IT BACK TO THE COUNCIL AND PHIL, JUST CONTINUE AND THEN WE'LL GO TO STEVE AFTER YOU.
NO, THAT BASICALLY SUMMED IT UP IS I, I, MY OPINION IS THAT WE SHOULD TAKE A, A MORE AGGRESSIVE APPROACH AS A COUNCIL AND AS A CITY AND CONTINUE BEING THAT LEADER, UM, IN, IN THE VISION FOR THIS PROPERTY UNTIL WE GET ENOUGH TRACTION TO WHERE THERE'S SOME MOMENTUM.
BUT RIGHT NOW I DON'T SEE ANY.
SO THAT'S, THAT'S MY COMMENTS FOR NOW.
UM, I, I THINK SPEED IS KIND OF THE OVERARCHING THING BECAUSE YOU CAN, YOU CAN HAVE THIS NICE BIG PLAN AND YOU'RE LIKE, WHERE DO WE START? AND, AND IT JUST KIND OF YEAR AFTER YEAR, IT JUST KIND OF GETS MUDDY DOWN AND NOTHING EVER GETS HAPPENED.
SO I'M DEFINITELY OF THE OPINION, YOU START WITH PHASE ONE, PHASE TWO, PHASE THREE PHASE.
YOU START WITH THE FIRST PHASE.
I DON'T SAY THAT TO BE RECKLESS.
I DON'T SAY THAT TO BE UNCOORDINATED WITH A MASTER PLAN.
I DON'T SAY THAT TO BE, UH, UH, CAVALIER, YOU KNOW, IN, IN THE OVERALL PROJECT.
TIME IS MONEY DEVELOPMENT COSTS, UH, THINGS LIKE THAT.
WE HAVE SOME GREAT OPPORTUNITIES.
WE'VE GOT LAND AND A PARKING STRUCTURE.
WE'VE GOT SOME INFRASTRUCTURE THERE.
THE GOVERNMENT, YOU KNOW, I LAUGHED ABOUT THE ENTERPRISE ZONE.
HEY, WHAT IF WE CAN EXTEND THAT ENTERPRISE ZONE FROM THE TIME THAT IT WAS FIRST ANALYZED TO TODAY BECAUSE OF THE ECONOMIC CONDITIONS ARE DIFFERENT AT THAT AREA THAN IT WAS PERHAPS WHEN THE ENTERPRISE ZONE WAS FIRST, UH, DONE.
UH, THE INCENTIVES, UH, WE DID THAT WITH THE HOTELS.
WE'VE DONE IT WITH CAR DEALERS.
I THINK THAT'S AN OPPORTUNITY FOR US TO THINK WHAT KIND OF INCENTIVES COULD WE OFFER.
UH, SO THAT WOULD ALL KIND OF HELP THE SPEED OF DEVELOPING PART.
AND, AND THERE'S NEGOTIATIONS WITH ALL WHO CAN VETO THIS? WHO, WHO CAN'T DO THIS? WHO WANTS TO DO THAT? UH, I'M, I'M, I'M THINKING SPEED IN ORDER TO GET PHASE ONE OF 10 DONE.
I THINK TIME IS OF THE ESSENCE, AND I DO WANT TO BE AGGRESSIVE ON THIS.
[01:45:01]
UM, GO AHEAD, MICHELLE.I, I'M A BIT QUIET 'CAUSE I HAVE TO GET ALL THE INFORMATION.
SO I THINK THAT THIS IS A GREAT PROJECT AND I, I AGREE WITH MY COLLEAGUES THAT WE NEED TO DO IT, UH, EXPEDITIOUSLY IF WE CAN.
I BELIEVE THAT THIS PROJECT WILL IMPROVE OUR CITY OVERALL.
THE RESIDENTS ARE CLAMORING FOR MORE ENTERTAINMENT, THEY'RE CLAMORING FOR MORE RESTAURANTS, THEY'RE CLAMORING FOR A BETTER SPOT TO GO.
WE CAN'T REMAIN A SMALL CITY ANY LONGER.
AND I THINK WE ALL ARE ON THE SAME PAGE ON THAT.
UM, ANY, I THINK THAT ANY FINANCIAL INPUT THAT COMES FROM THE CITY, IF IT COMES TO THAT POINT, WILL END UP GIVING US MORE ECONOMIC STABILITY.
UM, THAT'S ALWAYS A CONCERN OF MINE.
UH, ANYTIME THAT THE CITY WANTS TO SPEND A LARGE AMOUNT OF MONEY, YOU KNOW, HOW IS THIS GOING TO AFFECT THE CITY OVERALL AND UM, AND HOW DOES IT AFFECT RESIDENTS OVERALL? I THINK THIS IS GOING TO BE GOOD.
UH, THEY TALKED ABOUT THE NUMBER OF JOBS JUST IN THE PROJECT BUILDING ITSELF, UH, PHASE ONE AND TWO.
UH, THE JOBS FOR BUILDING THE HOUSING, JOBS FOR BUILDING THE BUSINESSES.
AND THEN ONCE THEY GET BUILT, THERE'LL BE EVEN MORE JOBS FOR THOSE WHO NEED EMPLOYMENT, REGULAR EMPLOYMENT DAY TO DAY.
UM, I LIKE THE IDEA OF HAVING, UH, THE BUSINESS SPACES, THE, UH, SHARED WORK SPACES.
I HEAR FROM RESIDENTS FROM TIME TO TIME THAT THEY'RE LOOKING FOR AN OFFICE SPACE.
THIS CAN DEFINITELY, UM, FULFILL THAT NEED.
UM, THERE ARE PEOPLE WHO WANT TO WORK FROM HOME AND I'M, I DON'T WANNA REITERATE EVERYTHING THAT THEY SAID, BUT I THINK THAT THAT'S DEFINITELY SOMETHING WE DON'T REALLY HAVE.
UM, AND SO I THINK THAT IF WE CAN DO THIS WITHOUT PUTTING THE CITY INTO A FINANCIAL BIND, I THINK THAT WE SHOULD MOVE FORWARD WITH IT.
I THINK IT'S GOING TO BRING A BETTER LEVEL OF ECONOMIC STABILITY.
WE'RE NOT GONNA HAVE TO WORRY ABOUT GETTING MORE CAR DEALERSHIPS IN.
AND I THINK THAT WE WILL KEEP OUR RESIDENTS HERE IF WE HAVE ENTERTAINMENT SPOTS, UM, VENUES THAT WILL KEEP THE YOUNGER KIDS HERE ONCE THEY GET OLD ENOUGH TO HAVE FAMILIES OR ARE ON THEIR OWN.
UH, SO MANY 2030S AND 40 SOMETHINGS HAVE NO PLACE TO GO.
AND I THINK THAT WE CAN OFFER THAT AND KEEP OUR MONEY HERE AND KEEP OUR RESIDENTS HERE.
AND IF WE UPGRADE THE MALL AND UPGRADE THIS AREA, I THINK CRIME IS GOING TO REDUCE, YOU'RE GONNA HAVE MORE PEOPLE THERE AND YOU'RE NOT GOING TO, YOU KNOW, THE CRIMINALS, WE'VE PROVEN THAT WITH OTHER AREAS.
CRIMINALS DON'T WANNA STICK AROUND WHERE THERE'S A LOT OF PEOPLE, AS WE'VE IMPROVED OUR PARKS, FROM WHAT I UNDERSTAND, THE UH, CRIMINAL ELEMENT IS NOT THERE AS MUCH.
UM, DO YOU NEED ANYTHING ELSE, MR. GRAHAM? DO YOU NEED ANYTHING, OFFICER, OFFICER OR DO YOU UNDERSTAND WHAT WE, WHAT THE COUNCIL WANTS? IT, IT SEEMS LIKE THE COUNCIL WANTS TO MOVE IT AS AGGRESSIVELY AS IS REASONABLY POSSIBLE.
I, I THINK, DOES EVERYBODY AGREE THAT THEY'D LIKE TO PURSUE BOTH OF THOSE OPTIONS? ANY DESCENT TO THAT? WE, WE ACTUALLY HEARD A WHOLE BUNCH OF THINGS.
VINCE, YOU WANNA JUST RUN DOWN THE LIST REALLY FAST AND THAT WE'LL, WE'LL START WORKING ON, YEAH.
WORKING ON SOME THINGS WE'LL HAVE TO BRING BACK TO YOU 'CAUSE THERE'S SOME FINANCIAL OR BUDGETARY ISSUES.
UM, BUT VINCE CAN GO OVER THE LIST REALLY FAST.
SO IN ORDER TO ACCOMPLISH WHAT THE COUNCIL HAS EXPRESSED INTEREST IN, WE NEED TO GET WORKING ON THE ENHANCED INFRASTRUCTURE FINANCING DISTRICT, THE IFD.
WE HAVE A MECHANISM TO DO THAT.
AS I SAID, UH, MASTER REDEVELOPMENT PLAN, WHICH ROB HUNTON MENTIONED, THAT'S GOING TO CONTAIN A LOT OF THAT SAUSAGE MAKING AND, AND A LOT OF THE DETAILS, THE GRANULAR LEVEL DETAILS.
UH, WE NEED TO TAKE A LOOK AT, UM, A ZONING DEVELOPMENT MASTER PLAN FOR LAND USE CONTROLS THAT IMPLEMENT THIS VISION, SPECIFICALLY THE VISION THAT YOU'RE INTERESTED IN SPECIFICALLY.
UH, OBVIOUSLY A PLAN FOR PRIVATE SECTOR MARKETING TO PEOPLE WITH THE FINANCIAL AND INVESTMENT WHEREWITHAL TO BE PARTICIPANTS IN SOMETHING LIKE THIS.
UM, WE CAN LOOK AT CREATING A WAY FOR INCREMENT FINANCING THROUGH PERHAPS BONDING WITH CERTAIN,
[01:50:01]
UH, PLEDGES OF THE GENERAL FUND RESERVE TO, TO DO, UH, THE DEBT SERVICE ON THAT BONDING.THAT WOULD BE A CONCEPTUALIZATION AT THIS POINT, UM, UNTIL IT'S FULLY A**L ANALYZED.
AND CERTAINLY IT'S NOT GONNA BE AN ISSUE AT ALL TO EXPLORE, UH, THE FEDERAL GOVERNMENT, UM, EXPANDING THE ENTERPRISE ZONE, THAT THAT WAS AN ACT OF CONGRESS.
SO WE WOULD, WE WOULD LOOK TO OUR CONGRESS CONGRESSIONAL REPRESENTATIVES AND SEE IF, IF THAT CAN BE DONE PIECEMEAL, UM, OR IF THAT'S PART OF A LARGER, UH, UPDATE TO THE ENTERPRISE ZONE.
SO THOSE ARE THE THINGS THAT MR. MITCHELL AND I HAVE BEEN PUTTING OUR HEADS TOGETHER WHILE WE'VE BEEN LISTENING TO YOUR COMMENTS.
AND IF THAT, IF YOUR DIRECTION IS WHAT WE'VE HEARD, WE NEED TO BRING BACK A PLAN THAT IMPLEMENTS ALL OF THOSE THINGS TO YOU IN THE VERY NEAR FUTURE.
OKAY, WELL THAT'S MY SUGGESTION.
ANYBODY HAVE ANY OTHER SUGGESTION? ALRIGHT.
UH, LADIES AND GENTLEMEN, WE'RE GONNA TAKE A SHORT BREAK AND WE'LL BE BACK TO FINISH ITEM
[15. City Council Action Plan (2024) Update RECOMMENDATION: That the City Council receives the update report regarding the City Council Action Plan (2024)]
15, WHICH IS AN UPDATE ON THE CITY COUNCIL ACTION PLAN.AND OUR CITY MANAGER WILL TELL US ABOUT THIS.
MEMBERS, THE COUNCIL, IF I CAN GET MY PRESENTATION UP.
UH, THIS WILL BE REALLY BRIEF.
UM, WE WANTED TO JUST GIVE A, A REPORT OF WHERE WE'RE AT YEAR TO DATE ON OUR THE CITY COUNCIL ACTION PLAN.
AS YOU RECALL, WE HAVE SIX DIFFERENT PRIORITY AREAS.
CITY BEAUTIFICATION IS INFRASTRUCTURE.
WE JUST TALKED A LOT ABOUT ECONOMIC DEVELOPMENT, HOMELESSNESS, PUBLIC SAFETY AND, AND, UH, A WHOLE BUNCH OF MISCELLANEOUS GOALS TOO.
UM, AS PART OF THE AGENDA, PACKAGE STAFF PRESENTED A REPORT THAT LOOKS SIMILAR TO THIS.
IT HAS SOME CODED, UM, SYMBOLS SUCH AS A CHECK, MEANING IT'S BEEN DONE, ACCOMPLISHED.
WE HAVE SOME THAT, UM, SHOW A RED X MEANING IT'S EITHER ON HOLD OR HASN'T BEGUN YET.
AND THEN WE HAVE SOME BLUE ARROWS THAT SHOW THAT WE'RE IN PROGRESS RIGHT NOW.
SO OF THE 65 DIFFERENT TASKS AS SO ASSOCIATED WITH THE SIX PRIORITY AREAS, UH, 10 HAVE BEEN COMPLETED, SEVERAL, SEVEN ARE, ARE ON HOLD BECAUSE WE JUST DON'T HAVE FUNDING FOR THOSE AT THIS TIME.
AND THEN 24, WE'RE MAKING SOME PROGRESS.
UH, AS YOU RECALL, A BIG, A BIG NUMBER OF THE 30 OR THE 65 PROJECTS ARE RELATED TO ARPA RELATED PROJECTS, AND I'M HAPPY TO SAY THAT WE'RE ON TARGET TO SPENDING THAT MONEY BY THE END OF THE YEAR.
SO WITH THAT STAFF'S HERE TO ANSWER ANY QUESTIONS.
UH, IF COUNCIL WANTS TO PROVIDE ANY FEEDBACK OR DIRECTION, WE CAN DO THAT.
I CAN TELL YOU BASED ON THE, THE LAST PRESENTATION, THERE WILL PROBABLY BE SOME THINGS THAT WILL HAVE TO BE PUSHED OFF A LITTLE BIT BECAUSE, UH, THAT'S A PRETTY BIG WORK PILL.
UH, BUT WE'LL, WE'LL FIGURE OUT WAYS TO ACCOMPLISH AS MUCH AS WE CAN.
SO STEPH'S HERE TO ENTERTAIN ANY QUESTIONS.
UM, QUESTION ON SOME OF THESE THAT ARE ON HOLD OR NOT ON HOLD, BUT THERE, THERE WE'RE MOVING FORWARD.
WILL WE HAVE TO PUT ANY OF THESE DOWN? THE ONES THAT ARE ON HOLD AND THOSE THAT ARE, WE ARE MOVING FORWARD, BUT YET THE FINISHED TIMEFRAME, LIKE MAIN STREET, GREEN STREET IS ONLY 70% COMPLETED.
WILL WE BE ABLE TO COMPLETE THESE PROJECTS THAT WE'VE ALREADY GONE TO THIS POINT, UM, BEFORE, UM, THE MEASURE COMES UP IN NOVEMBER? WELL, YOU CAN SEE THERE'S, THERE'S DIFFERENT TARGET DATES FOR EACH OF THOSE.
AND SO LIKE THE, THE GREEN STREET MAIN STREET, WE'RE ANTICIPATING IT SHOULD BE DONE BY SEPTEMBER, 2024.
SO THAT, IN THAT CASE, YES, THAT WOULD HAPPEN BEFORE, UH, THE, THE UPCOMING ELECTION.
SO IT LOOKS LIKE MOST OF THESE ARE SUPPOSED TO BE DONE IN 2024, IS THAT CORRECT? THE, THE GOAL IS TO ACCOMPLISH AS MUCH AS WE CAN IN THIS PERIOD OF TIME.
THERE ARE SOME LONGER TERM GOALS, LONGER TERM PROJECTS LIKE THE WASHINGTON STREET SAFETY, UH, PROJECT THAT WILL GO WELL INTO 2025.
OH, AND THE FIRE STATION'S, ANOTHER GREAT EXAMPLE OF THAT WOULD GO INTO 2025.
UM, AND I SEE LIKE THE NEIGHBORHOOD CAPITAL IMPROVEMENT PROJECTS, SOME OF THESE OTHERS, OKAY, I JUST WANT TO, THAT'S AN AWFULLY BIG LIST.
YOU GUYS ARE DOING A GREAT JOB IN GETTING WHAT YOU HAVE DONE COMPLETED.
UM, WE MAY HAVE TO REEVALUATE OUR GOALS NEXT YEAR AND NOT MAKE IT SO BIG.
WELL, AS YOU RECALL, YOU GAVE, YOU GAVE SOME STAFF SOME FEEDBACK, UM, AFTER THE
[01:55:01]
CA THE CITY COUNCIL ACTION PLAN WAS ADOPTED.AND THAT REALLY HELPED US PRIORITIZE THE THINGS THAT YOU REALLY WANTED US TO FOCUS ON, WHICH WE'VE BEEN DOING.
SO THAT'S WHY YOU DO SEE SOME BLANKS.
THOSE ARE JUST AREAS THAT WEREN'T AS IMPORTANT ON YOUR LIST.
SO YOUR, YOUR CONTINUAL FEEDBACK IS VERY USEFUL.
DO HAVE SPEAKER CARDS FOR THIS ITEM? NO SPEAKER CARD, SIR.
UM, DO YOU NEED A, UH, A VOTE ON THIS GRAHAM, SIR? UH, JUST, UH, HERE TO ENTERTAIN ANY DIRECTION OR ANY FEEDBACK IF THE COUNCIL HAD ANY? SO IF THERE'S NONE THEN WE'RE FINE.
STAY THE COURSE, I THINK IS EVERYBODY.
UH, THERE ARE NO COMMISSION REPORTS ON TODAY'S AGENDA.
[16. Council Activity Report]
ITEM 16 IS MY ACTIVITIES REPORT.[17. COUNCILMEMBER STEVE GOBLE MTS (Metropolitan Transit System Board); East County Advanced Water Purification Joint Powers Authority Board; Chamber of Commerce – Government Affairs Committee; SANDAG – Board of Directors – Alternate; SANDAG Public Safety Committee – Alternate.]
UM, ITEM 17 IS THE REPORT AND COMMENTS OF COUNCIL MEMBERS? UH, COUNCIL MEMBER STEVE GOBEL.UH, THE REPORTS ARE AS REPORTED AND I HAVE A COUPLE ADDITIONAL COMMENTS.
UH, THE MTS IS GOING TO LAUNCH ITS COPPER LINE ON SEPTEMBER 29TH.
THERE'S GOING TO BE A SERIES OF, OF, UH, EVENTS AND PRACTICES LEADING UP TO THAT DATE.
THAT WILL BE A ONE CAR TRAIN FROM ELCON TRANSIT CENTER OUT TO SANT AND BACK.
THAT WILL BE STILL THE SAME 15 MINUTE INTERVALS, BUT THAT WILL HELP, UH, ENSURE, EXCUSE ME, ABOUT A MILLION DOLLARS WORTH OF FEWER COSTS THAT RELATED TO DELAYS THROUGHOUT THE REST OF THE SYSTEM.
SO GOOD NEWS FOR MTS NEW COPPER LINE APPEARS TO LAUNCH SEPTEMBER 29TH.
I DID TALK TO THEM ABOUT SECURITY AND THE SECURITY ISSUE IS, UH, HAVING TO CROSS THE TRACKS TO GET TO THE COPPER LINE.
AND SO THEY HAVE PUT OUT A GOOD PLAN FOR SIGNAGE AND THEY'RE GONNA HAVE AMBASSADORS ON HAND AND THEY'RE IMPORTANTLY GONNA HAVE CODE COMPLIANCE OFFICERS TO ENSURE THAT REALLY TROLLEY CUSTOMERS ARE ON THE PLATFORM.
THE EVENTS WATER PURIFICATION PROJECT HAD A PIPE POLE OF ABOUT A HALF A MILE OF 36 INCH PIPE LAST WEEK.
IT WENT UNDER CARLTON OAKS GOLF CARTS UNDER THE SAN DIEGO RIVERBED AND OUT TOWARDS MISSION GORGE PUMP STATION.
THAT WAS SUCCESSFUL AND THAT'S GOOD NEWS.
UH, FINALLY, I WANNA COMMEND THE POLICE AND FIRE DEPARTMENT.
YESTERDAY I HAD THE UNUSUAL, UH, OCCURRENCE OF SEEING A MEDICAL EMERGENCY AT ONE OF THE HOUSES IN MY NEIGHBORHOOD.
THE CALL CAME IN THAT THE CALLER SAID, UH, CPR WAS IN PROGRESS AT ONE OF THE, UM, OTHER PEOPLE IN THE HOUSEHOLD.
WITHIN THREE MINUTES, THE FIRST OFFICER HAD ARRIVED AT THE, UH, AT THE HOUSE.
FIRE AND AMBULANCE ARRIVED WITHIN ANOTHER 60 SECONDS.
THAT FIRST OFFICER ALREADY HAD A GLOVE ON BEFORE HE EVEN GOT OUT OF THE CAR, WHICH WAS GREAT.
AND, UH, I WATCHED HIM BECAUSE I COULD SEE THIS ALL FROM MY HOUSE.
UH, HE WAS TO THE FRONT DOOR WITHIN 10 SECONDS.
SO TOGETHER WITH THE EFFORTS OF THE FIRE DEPARTMENT THAT CPR WAS SUCCESSFUL AND WE'RE VERY GLAD AND VERY PROUD OF OUR POLICE AND FIRE DEPARTMENTS ALWAYS.
[20. DEPUTY MAYOR PHIL ORTIZ League of California Cities, San Diego Division; East County Economic Development Council; MTS (Metropolitan Transit System Board) – Alternate; East County Advanced Water Purification Joint Powers Authority Board – Alternate; Chamber of Commerce – Government Affairs Committee – Alternate.]
ALRIGHT, MR. ORTIZ, UH, AS REPORTED WITH TWO ADDITIONS, UH, ACTUALLY, I'M SORRY, JUST ONE ADDITION.UH, THE GILLESPIE FIELD, UM, EXCUSE ME, EAST COUNTY ECONOMIC DEVELOPMENT COUNCIL.
GILLESPIE FIELD COMMITTEE WAS TODAY AND I ATTENDED THAT.
THAT'S ALL AS REPORTED, MR. KENRICK AS REPORTED.
THERE ARE NO JOINT COUNCIL MEMBER REPORTS, NO GENERAL INFORMATION ITEMS, FIRST OR SECOND READINGS OF ORDINANCES AND NO CLOSED SESSION ON TODAY'S AGENDA.
THAT BRINGS US TO THE ADJOURNMENT OF THE REGULAR JOINT MEETING OF THE CAJON CITY COUNCIL.
EL CAJON HOUSING AUTHORITY SUCCESSOR AGENCY TO THE EL CAJON REDEVELOPMENT AGENCY, HELD THIS NINTH DAY OF JULY, 2024.
WE ARE ADJOURNED TILL TUESDAY, JULY 23RD, 2024 AT 3:00 PM GOOD JOB, BILL.