Nov 02, 2023 Joint Meeting of the Wharves Board of Trustees and City Council

THAT WAS FINE YESTERDAY.

[00:00:01]

YOU DROPPED THAT REALLY QUICKLY.

SHOULD I PUT IT ON? GOOD MORNING EVERYONE.

[1. DECLARATION OF A QUORUM AND CALL MEETING TO ORDER]

WE ARE TELEVISING.

GOOD MORNING TO EVERYONE HERE.

I'D LIKE TO WELCOME.

COUNCIL. IT'S NICE TO SEE YOU AGAIN, COUNCIL.

IT SEEMS LIKE WE'RE MEETING EVERY DAY.

ONCE A WEEK. ONCE A WEEK AT LEAST.

SO WE'VE HAD A LOT OF MEETINGS.

I WANT TO WELCOME THE WHARVES BOARD.

GLAD TO HAVE EVERYONE HERE.

WHAT A WHAT A SHOULD BE.

HOPEFULLY THE BEGINNING OF SEQUENTIAL MEETINGS GOING THROUGHOUT THE YEAR.

AND WE'RE LOOKING FORWARD TO THAT.

I WANT TO WELCOME EVERYONE IN THE AUDIENCE.

AND FOR THOSE THAT ARE IN THE COMMUNITY THAT MAY BE WATCHING THIS MEETING, GLAD TO HAVE YOU WITH US THIS MORNING.

I'M GOING TO GO AHEAD AND OPEN FOR THE COUNCIL, AND THEN WE'LL HAVE OUR CHAIRPERSON OF THE WHARVES BOARD, VIC PEARSON, OPEN FOR THE WHARVES BOARD.

JANELLE, COULD WE HAVE A ROLL CALL, PLEASE? MAYOR BROWN, PRESENT MAYOR PRO TEM COLLINS PRESENT.

COUNCIL MEMBER LOUIS PRESENT.

COUNCIL MEMBER FINKLEA PRESENT.

COUNCIL MEMBER BOUVIER HERE.

COUNCIL MEMBER LISTOWSKI HERE.

COUNCIL MEMBER ROBB PRESENT.

VERY GOOD. WE ARE PRESENT TODAY.

VIC. OKAY. CAN YOU DO A ROLL CALL FOR THE PORT? YES. OR FOR CHAIRMAN VIC PEARSON HERE, VICE CHAIRMAN JEFF PATTERSON HERE.

TRUSTEE. MAYOR CURT BROWN, PRESENT TRUSTEE.

WILLIE GONZALEZ HERE.

TRUSTEE SHEILA LIDSTONE HERE.

TRUSTEE RICHARD MOORE HERE.

TRUSTEE JIM YARBOROUGH, HERE WE HAVE ROGER REESE AND ANTHONY BROWN.

OKAY. ALL RIGHT. VERY GOOD.

MIKE. WHY? BECAUSE I'M HAVING A HARD TIME HEARING THEM.

YEAH. IS THERE A MIC.

IS ONE OF THESE DISKS DOWN THERE.

THE GREEN IT IS.

YOU MIGHT WANT TO JUST MOVE IT A LITTLE BIT.

GOT IT. THAT'S A GOOD POINT, MARIE.

ALSO WE HAVE EXTENDED OUR TABLE.

SO FOR THOSE THAT ARE DOWN AT THIS END AND I KNOW IT DOESN'T APPLY TO YOU, VIC, BUT IF YOU COULD SPEAK UP AS YOU TALK SO WE COULD ALL HEAR UP AND DOWN THE TABLE HERE.

SO THAT WOULD BE APPRECIATED.

I WANTED TO AGAIN THANK THE AWARDS BOARD FOR BEING HERE.

TODAY ON OUR AGENDA, WE HAVE THREE ITEMS THAT ARE NOT ONLY IMPORTANT TO THE WHARVES BOARD, BUT IMPORTANT TO THE ENTIRE COMMUNITY HERE IN GALVESTON. AND WE'RE LOOKING FORWARD TO DISCUSSION ON THESE THREE ITEMS. THIS IS FOR COUNCIL'S ABILITY TO LEARN MORE ABOUT WHAT THE STATUS IS AT THE WHARVES BOARD.

THIS IS FOR COUNCIL TO EDUCATE OURSELVES MORE ON WHAT'S GOING ON AND GIVES US AN OPPORTUNITY TO ASK QUESTIONS AND TO GIVE INPUT TO THE WHARVES BOARD AS THEY MOVE FORWARD.

THERE ARE IMPORTANT DECISIONS GOING ON THAT WILL BE COMING UP IN THE FUTURE AT THE PORT.

AND THEY APPRECIATE VIC, YOU BRINGING THE WHARVES BOARD OVER TO RECEIVE COUNCIL'S INPUT AND TO OPEN THAT DISCUSSION BEFORE YOUR DECISIONS SAYING THAT.

LET'S GO AHEAD. WOULD YOU READ THE FIRST ITEM, PLEASE, JANELLE?

[3.A. Discussion Of A Possible Cruise Terminal At Pier 16 (Part 1 of 2)]

WE HAVE A NUMBER OF PACKET MATERIAL DOCUMENTS.

THERE IS EACH ONE OF THEM.

EACH DOCUMENT IS TO SUPPORT WHAT WE'LL BE TALKING ABOUT THIS MORNING.

AND I'M GOING TO TURN THIS OVER TO CHAIRMAN PEARSON.

OKAY. MR. MAYOR AND COUNCIL, IT'S A REAL PRIVILEGE FOR US TO BE HERE AND TO HAVE EVERY SINGLE MEMBER OF BOTH BODIES HERE.

I THINK THAT SIGNALS THAT WE'RE IN THIS TO WORK TOGETHER, GET ON THE SAME PAGE AND MOVE THE CITY FORWARD, PARTICULARLY AT THE WHAT THE WHARF IS COVERING. AND WE HAVE SOME EXCITING INFORMATION TO SHARE WITH YOU.

WE WILL GET YOUR INPUT AND HAVE THIS OPEN FORM OF COMMUNICATION.

I THINK IT'S GOING TO BENEFIT EVERYBODY.

WITH THAT ON THE FIRST TOPIC IS THE CT 16, AND WE'LL JUST KIND OF HAVE ROGER GIVE A LITTLE START WITH THE UPDATE OF WHERE WE'RE AT AND A TIMELINE OF WHAT WE'RE PROJECTING.

AND, ROGER PORT DIRECTOR REEVES, IF YOU'LL CERTAINLY THANK YOU.

FIRST OFF, I WANT TO SAY THANK YOU GUYS FOR YOU KNOW, HELPING US WITH THE FINANCING ON THE LAST TRANSACTION WE DID.

WE CERTAINLY APPRECIATE THE WORK THAT WENT INTO THAT.

AND I KNOW THAT ESPECIALLY SOME OF YOUR STAFF SPENT A LOT OF TIME YOU KNOW, FOLLOWING THIS THING WITH THE WITH THE UNDERWRITERS AND EVERYTHING.

AND I THINK JUST ONE ANOTHER NOTE ON THAT, WHICH IS, I THINK A GOOD INDICATION OF GALVESTON IN GENERAL IS WE WERE THERE WAS A $50 MILLION OFFERING. WE WERE WE WERE INTO IT 15 MINUTES AND IT WAS SOLD OUT.

AND SO THAT'S JUST KIND OF TELLS.

YOU THAT THERE? GALVESTON IS ON I THINK ON THE THE RADAR.

[00:05:04]

ESPECIALLY FROM, YOU KNOW, THE, THE, THE CRUISE STANDPOINT.

BUT, YOU KNOW, IT ENDED UP AT THE END.

WITH ABOUT 15 MINUTES LEFT, THERE WAS OVER 500 MILLION ORDERS FOR A $50 MILLION OFFERING.

SO JUST IT'S A GOOD INDICATION WE HAD, YOU KNOW HERE AGAIN, I THINK THE PARTICIPATION THAT THE CITY HAD IN THAT I KNOW DAN WAS FOLLOWING ALL THAT ALL THE WAY THROUGH THE, THE SELLING PERIOD.

SO I'M HOPEFULLY HERE IN THE NEAR FUTURE WE'LL BE DOING ANOTHER ONE OF THOSE IF THE BOARD SEES IT FIT FOR THAT.

SO I JUST WANTED TO THANK YOU GUYS AND EVERYTHING FOR THAT.

JUST JUST A BRIEF BACKGROUND ON MSC AND POTENTIALLY CT16.

YOU KNOW, THIS THIS AREA RIGHT HERE IS IN OUR MASTER PLAN.

AS A FOURTH CRUISE TERMINAL.

YOU KNOW, THE INTERESTING THING ABOUT IS, IS INSTEAD OF 2031, WHEN THAT WAS ORIGINALLY ORIGINALLY PUT IN THE MASTER PLAN AND VOTED ON YOU KNOW, IT HAS MOVED FORWARD TO NOW 20, 23, 24.

SO THERE'S THERE'S BEEN A BIG RESURGENCE.

THERE'S A BIG YOU KNOW, I'LL JUST PUT IT THIS WAY.

GALVESTON IS ON THE MAP.

GLOBALLY. WITH THE CRUISE BUSINESS, I MEAN, YOU KNOW, WE, WE SEE ARTICLES AND A LOT OF PEOPLE WRITING ABOUT WHAT'S HAPPENING IN GALVESTON YESTERDAY HAD THREE INTERVIEWS ALONE ON WHAT WHAT'S WHERE WE'RE GOING WITH THIS THING.

SO I'LL HEAD RIGHT IN AS WE, YOU KNOW, MSC, JUST BRIEFLY YOU KNOW, I'VE, I'VE KNOWN THEM FOR, YOU KNOW, EVER SINCE I'VE BEEN HERE IN GALVESTON AND THEY BASICALLY HAVE COME, YOU KNOW, COME FULL CIRCLE.

I FIRST STARTED GOING TO MEET WITH THEM AND THEY REALLY DIDN'T WANT TO TALK TO ME.

AND THEN ABOUT, YOU KNOW, RIGHT NEAR THE PANDEMIC, THINGS CHANGED IN THE CRUISE INDUSTRY.

AND SO, YOU KNOW THEY ARE A MSC IS A PRIVATELY HELD COMPANY.

IT'S AN ITALIAN COMPANY WITH HEADQUARTERS IN GENEVA.

THEY ARE AN $80 BILLION COMPANY.

AND THIS IS THEY'RE HUGE.

THEY'RE THE LARGEST CONTAINER CARRIER IN THE WORLD WITH ALMOST 800 SHIPS.

AND SO WHAT WHAT THAT MEANS TO US IS FINANCIAL STABILITY AND AND THE ABILITY FOR THEM TO STAND BEHIND THE TERMS AND CONDITIONS OF WHAT WE'VE BEEN TALKING FOR OVER A YEAR WITH THEM ABOUT YOU KNOW, THEY'VE YOU KNOW, WE ARE ALSO HAVING CONVERSATIONS WITH THEM ABOUT THE, THE CARGO BUSINESS AND BRINGING THEIR CARGO SHIPS IN HERE.

AS WE ALL KNOW, HOUSTON IS PACKED.

YOU CAN SEE IT OUT THERE EVERY DAY OFF THE COAST.

SHIPS JUST WAITING TO GET IN.

AND SO, YOU KNOW, I THINK THE FINANCIAL STABILITY AND THE THE POTENTIAL AND THE AND THIS IS SOMETHING I'VE SAID SINCE I GOT HERE IS, IS WE'VE GOT TO LEVERAGE THE CRUISE BUSINESS TO REBUILD THE CARGO BUSINESS, WHICH HAS BEEN LARGELY IGNORED OVER THE LAST 20 OR SO YEARS.

AND IN OUR INFRASTRUCTURE, YOU KNOW SHOWS IT.

SO ONE OF THE THINGS WE HAVE TO DO IS TAKE THESE REVENUES, AS WE JUST DID, AND BUILD THE ASSETS THAT ARE PUTTING OFF THE MOST CASH FLOW THAT ALLOWS US TO SERVICE DEBT AND AS WELL AS MAKE CONTRIBUTIONS OF OUR OWN CAPITAL TO THESE, TO THESE PROJECTS.

SO WHAT WE WOULD I WOULD SAY IT'S OVER THE LAST 80 YEARS.

WELL, NOT THE LAST 20.

I WAS TRYING TO BE KIND.

YEAH, BUT BEEN NEGLECTED A LONG TIME, AND IT HAS.

AND AS YOU KNOW AFTER MUCH WORK WE FINALLY RECEIVED MONEY FROM THE STATE OF TEXAS $42 MILLION IN GRANT FUNDS TO BEGIN WORK ON THE WEST END.

AND THAT WE, YOU KNOW, IN NOT IN ANTICIPATION OF THAT, BUT IN ANTICIPATION OF US MOVING FORWARD WITH, YOU KNOW, REBUILDING INFRASTRUCTURE ON THE WEST END.

WE HAD ALREADY STARTED ALMOST A YEAR AGO WITH ENGINEERING CONSTRUCTION DRAWINGS AND EVERYTHING THAT WE NEED TO MOVE FORWARD ON REBUILDING THE BERTHS.

WHAT WE'VE DONE IS WE'VE RECEIVED THE WE'VE RECEIVED 36 MILLION FOR THE WEST END, WHICH THE PORT WILL MATCH WITH AROUND 14 MILLION. IT'S A $51 MILLION TRANSACTION.

AND THEN, AS YOU KNOW, AS YOU MAY OR MAY NOT KNOW, WE ALSO RECEIVED MONEY TO FINISH THE WALKWAY, WHICH HAS BEEN LARGELY INOPERATIVE FOR 20 YEARS.

AND THEN IT'S, I SAY, LARGELY INOPERATIVE BECAUSE I CAN WALK THROUGH THERE AND IT WORKS FINE.

YOU KNOW, THE BOTTOM LINE IS, IS THEN THE OTHER PIECE IS THE IS THE FINAL PIECE OF THE INTERNAL ROAD NETWORK WHICH IS NOW IN PLACE, WHICH WE JUST GOT THREE POINT.

$6 MILLION TO FINISH THAT PIECE.

[00:10:01]

WE'RE GETTING READY TO START ON THE THIRD PHASE, WHICH IS THE AREA IN FRONT OF THE COMMERCIAL AREA IN FRONT OF FISHERMAN'S WHARF, ALL THAT AREA RIGHT THERE.

YOU KNOW, THE ROAD GOING THROUGH THERE IS VERY NARROW AT THIS STAGE.

AND SO WE'RE BEGINNING ENGINEERING ON THAT.

SO WHAT'S WHAT'S HAPPENING IS WHAT WE'VE TRIED TO DO AND WHAT THIS ROAD WILL DO IS AND I THINK WE'RE SEEING IT NOW, WILL TAKE TRAFFIC OFF OF HARBORSIDE DRIVE DURING CRUISE DAYS. ROGER.

IF YOU DON'T MIND, MENTION THE TOTAL LOCAL MATCH FOR THOSE THREE GRANTS AND HOW WE'RE GOING TO FUND THAT.

RIGHT. I THINK THAT'S THE TOTAL LOCAL MATCH IS ABOUT 15 MILLION.

AND IN OUR PLAN IS TO PAY FOR THAT OUT OF OUR OWN CASH FLOW.

YOU KNOW, AS YOU MAY OR MAY NOT KNOW, WHEN, WHEN WE, WHEN WE STARTED ON CRUISE TERMINAL TEN.

EXCUSE ME. CRUISE TERMINAL 25, WHICH IS ONE WE'RE UNDER CONSTRUCTION WITH NOW THE MONIES THAT WERE UTILIZED FOR THAT CAME FROM THE PORT UNTIL THE FINANCING WAS DONE.

SO WHEN THE FINANCING WAS DONE THROUGH THE REIMBURSEMENT RESOLUTIONS WE WERE ABLE TO REIMBURSE OURSELVES ALL THE CASH THAT WE HAD PAID OUT.

AND SO NOW WE HAVE THE MONEY TO CONTINUE TO MOVE FORWARD WITH THE MATCH.

I MEAN, IN REALITY, IT'S A IT'S A TWO YEAR PROGRAM.

SO WE'LL BE WE'LL BE ABLE TO MATCH AND MONEY OVER TWO YEAR PERIOD.

BUT IN REALITY, OUR MONEY'S NOT DUE UNTIL THE END.

SO WE RECEIVE MONEY FROM TEXDOT ALL THE WAY UP UNTIL WHAT THEY'VE COMMITTED TO US.

WHAT WAS THE TOTAL AMOUNT OF THE GRANTS? EXCUSE ME? THE TOTAL AMOUNT OF THE GRANTS? THE THREE GRANTS.

WHAT IS IT? WHAT WAS THE TOTAL MATCH IS ABOUT 15 MILLION.

OH, THE TOTAL TOTAL? THE TOTAL AMOUNT OF THE GRANTS YOU RECEIVED.

ARE WE GETTING HOW MUCH IS THE GRANT? OKAY. THE TOTAL TOTAL GRANTS 42,000,042 AND 15 MILLION.

AND THAT'S FOR THREE OVER THREE PROJECTS.

OBVIOUSLY THE BIGGEST ONE.

TXDOT MADE A SPECIAL TRIP DOWN HERE RIGHT TOWARDS THE END OF THE SELECTION PROCESS TO LOOK AT WHAT WE WERE DOING, AND THEY GAVE US A LOT OF SUPPORT.

WE GOT SUPPORT FROM THE GOVERNOR'S OFFICE ALSO WHEN IT CAME DOWN TO GET THESE GRANTS, AND WE RECEIVED THE PORT OF GALVESTON, RECEIVED THE LARGEST GRANT OF ANYBODY OF TOTAL MONIES THAT WERE ALLOCATED BY TEXTILE.

AND ALL I CAN SAY WAS ABOUT TIME MY IN MY MIND, IT WAS ABOUT TIME BECAUSE WE WORKED AND WE'VE WORKED AND WE'VE WORKED.

AND, YOU KNOW, FINALLY IT HAPPENED.

SO, YOU KNOW, IN MY MIND, IT'S THE BEGINNING.

IT'S THE BEGINNING OF FIXING THAT WEST END FINALLY, AND BEING ABLE TO TO SEE MY, MY DREAM OR MY VIEW OF WHAT THAT WEST END CAN LOOK LIKE.

NEVER HAVE WE EVER ONCE WAVERED FROM THE FACT THAT WE'VE GOT TO REBUILD THE WEST END.

BUT WE HAD TO GET THERE, AND TO GET THERE, WE HAD TO GENERATE THE CASH FLOW IN ORDER TO PAY THE DEBT.

AND AND NOW IN IN YEAR'S ALMOST YEAR SIX WITHOUT BEING HERE, WE ARE THERE.

AND SO WE WILL YOU KNOW WE'LL TEN WE AND WE HAVE SOME DOCUMENTS HERE TO TALK ABOUT.

SO THE TERMINAL THIS RIGHT NOW THE PORT IS SPENT ABOUT $680,000, ABOUT 90% OF THE MONEY.

AND WHAT YOU SEE HERE IS A PRODUCT OF THAT WITH BA, WHO IS OUR ARCHITECTS AND ENGINEERS WHO HAVE GONE THROUGH AND TAKEN THE MONEY WE HAVE AND DESIGNED A CONCEPTUAL DESIGN FOR FOR CT 16 CT 16, AS I MENTIONED AGAIN, IS BEEN IN OUR MASTER PLAN.

IT'S THE LAST CRUISE TERMINAL.

IT'S IN OUR MASTER PLAN.

AND SO, YOU KNOW, WE, WE'VE WE'VE TAKEN ADVANTAGE OF A OF A COMPANY THAT HAS IS VERY, VERY EXPERIENCED GLOBALLY IN THE WORLD BASICALLY ARE DESIGNED TERMINALS IN SINGAPORE, BARCELONA, EVERYWHERE IN IN THE AROUND THE WORLD.

THEY DESIGNED TERMINALS SO THEY, THEY KNOW WHAT THEY'RE DOING.

AND WE WE'VE BEEN LUCKY ALSO BECAUSE WITH THE ROYAL CARIBBEAN TERMINAL THERE WAS A COMPANY CALLED HENSEL PHELPS WHO IS THE GENERAL CONTRACTOR ON THAT.

THEY HAVE DONE AN EXCELLENT JOB OUT THERE.

AS A MATTER OF FACT, YESTERDAY I JUST RECEIVED NOTICE THAT THAT CRUISE TERMINAL RECEIVED LEED GOLD STATUS, WHICH IS AN ENVIRONMENTAL LEVEL WITH THAT.

YOU KNOW, IT'S REALLY BASICALLY GIVES THEM THEM AWARD FOR BEING ENVIRONMENTALLY CONSCIOUS, LIKE THEY, THEY HAVE BEEN ALL ALONG.

AND SO THEN ALSO AS WE MOVE INTO TO CRUISE TERMINAL 25, JUST BRIEFLY THAT TRANSACTION IS THAT THAT IS SET TO BE COMPLETED HERE IN ABOUT 45 DAYS. 30 DAYS WHEN THE NEW CRUISE SHIP COMES IN FROM THE JUBILEE WITH CARNIVAL.

AND IF YOU'RE INTERESTED, YOU CAN GO ONLINE AND WATCH THE JUBILEE COME FROM THE FACTORY.

IT'S NOW IT WAS IN NORWAY YESTERDAY, SO IT'S ON ITS WAY HERE.

AND THAT WILL THAT WILL ADD ANOTHER 2500 PASSENGERS TO CRUISE TERMINAL 25.

AND SO WHAT WHAT THE POINT HERE IS, IS ALSO HENSEL PHELPS HAS DONE ALL THE WORK ON THAT.

US AND THEN WE PICK THEM ALSO AS THE CMR FOR THE NEW CRUISE TERMINAL.

[00:15:04]

BASICALLY THE NEXT STEP FOR US IS TO GET TO WHAT'S CALLED A GROSS MASS MAXIMUM PRICE.

AND THEN THAT'S A GUARANTEED PRICE FROM THE CONTRACTOR.

SO THAT'S WHERE ON OUR BOARD YESTERDAY WE DEFERRED.

BUT WE WE'RE ASKING THE BOARD FOR $7 MILLION TO CONTINUE FORWARD WITH THE WORK WITH THEM, AS WELL AS THEN GET INTO CONSTRUCTION DRAWINGS.

AND AT THAT STAGE, HENSEL PHELPS WILL SUPPLY US A MAXIMUM PRICE.

AND WE FEEL LIKE WE ARE IN PRETTY CLOSE ON THOSE NUMBERS IN A WAY.

BUT, YOU KNOW, WE NEED TO GO THROUGH THAT BECAUSE THEN THERE HAS TO BE PROOFED WITH THE CONTRACTORS.

IN TERMS OF WHAT THE FINAL COST WILL BE.

YEAH, THAT COUNCILMAN FINKLEA.

YEAH. ROGER, I'VE GOT SOME QUESTIONS ABOUT THAT.

SO YOU ENTERED INTO THE SAME TYPE OF CONTRACT THAT YOU DID FOR TERMINAL 25 CNR WITH THE GMP, CORRECT? CORRECT. OKAY. AND LET ME PUT THIS.

WE'VE SELECTED THEM.

RIGHT. AND YOU'VE ALREADY AUTHORIZED, I THINK UNDERNEATH THAT CONTRACT, $160,000 TO PROVIDE ESTIMATING SERVICES FOR CRUISE TERMINAL 16.

CORRECT THE REQUEST FOR THE ADDITIONAL $7 MILLION.

YOU JUST SAID THAT THAT WAS FOR THE COMPLETION OF THE CONSTRUCTION DRAWINGS, AND THAT WOULD.

BUT THAT'S NOT THROUGH HENSEL PHELPS.

THAT'S THROUGH YOUR ARCHITECT. THAT'S CORRECT.

BA AND ALSO INCLUDED THAT IS CONSTRUCTION MANAGEMENT SERVICES.

SO CONSTRUCTION MANAGEMENT SERVICES BY THE ARCHITECT.

BY THE ARCHITECT. OKAY.

SO NOTHING ELSE UNDERNEATH THE THE CMR WITH HENSEL PHELPS.

NOTHING YET. OKAY.

NEXT QUESTION.

WHAT'S THE STATUS OF THE CONSTRUCTION AND THEN WHAT WOULD BE THE ANTICIPATED COMPLETION DATE OF THOSE? WELL, THE STATUS AS I JUST MENTIONED IS YOU KNOW, IT'S BASICALLY ON HOLD AT THIS STAGE UNTIL WE, WE SIGN THAT CONTRACT.

SO WHAT YOU'VE GOT SO FAR IS SCHEMATIC LEVEL DRAWINGS.

YEAH. THIS IS WHAT WE ASKED FOR.

EXACTLY. WE GOT THIS IN THE ORIGINAL MONIES THAT WERE SPENT.

WE ANTICIPATE HAVING CONSTRUCTION DRAWINGS PROBABLY BY THE END OF THIS YEAR, CONSTRUCTION DRAWINGS BY THE END OF THIS YEAR.

AND WHAT LEVEL CONSTRUCTION DRAWINGS IS HENSEL PHELPS GOING TO BE BASING THEIR GMP ON? IS IT 50%, 90%, 100%? IT'LL BE 90%, 90% DRAWINGS.

AND SO YOU WOULD ANTICIPATE BY THE END OF THIS YEAR THAT YOU WOULD HAVE CONSTRUCTION DRAWINGS SUFFICIENT TO GENERATE THAT GMP FOR THE CONTRACT.

AND I WOULD SAY TO YOU, GOING INTO THANKSGIVING, CHRISTMAS, YOU KNOW, I MEAN, FOR ME TO SAY THIS WILL BE THE END OF THIS YEAR IT COULD BE COULD BE THE MIDDLE OF JANUARY.

BUT AND THE REASON I'M ASKING ALL THESE QUESTIONS IS BECAUSE I WANT TO ESTABLISH KIND OF THE PROJECT PLAN AND TIMELINE BY WHICH YOU'RE GOING TO COME BACK AND ASK FOR FUNDING IN SOME FORM OR FASHION TO COUNCIL, BECAUSE WE WANT TO MAKE SURE THAT WE KNOW WHAT THE GUARANTEED MAXIMUM PRICE IS, WHAT WE'RE OBLIGATING THE CITY FOR, AS WELL AS THE NEXT QUESTION WE HAD IS THE STATUS OF THE AGREEMENTS WITH THE CRUISE LINES.

WHAT'S THE STATUS OF THOSE AGREEMENTS? RIGHT. THE STATUS AGREEMENTS WITH THE CRUISE LINES IS WE'VE BEEN WORKING ON THESE FOR, YOU KNOW, PROBABLY 6 TO 8 MONTHS.

SO I THINK THAT REALISTICALLY, YESTERDAY WAS THE FIRST STEP WHEN OUR TUESDAY WAS THE FIRST STEP WHEN THE BOARD VOTED TO MOVE FORWARD.

YOU KNOW, I THINK THE THE CONTRACTS ARE BASICALLY COMPLETE.

WE HAVE NOT SIGNED THEM.

OBVIOUSLY. WE'LL SHARE THOSE WITH YOU BEFORE WE SIGN THEM, BUT WE THINK THE CONTRACTS ARE 90% COMPLETE.

AS TO TERMS AND CONDITIONS ONE OF THE THINGS THAT I REALLY AM NOT AT LIBERTY TO SPEAK AT THIS STAGE, BECAUSE OF THE COMPETITIVE NATURE OF THE CRUISE INDUSTRY, THEY DON'T REALLY WANT TO TALK ABOUT WHAT THE TERMS OF THEIR DEAL IS WITH THE PORT.

BECAUSE EVERY, EVERY CRUISE LINE HAS A DIFFERENT A DIFFERENT TERMS AND CONDITIONS WITH THE PORT.

SO IS IT YOUR INTENT OR IS IT THE PORT'S INTENT TO HAVE THOSE AGREEMENTS FULLY EXECUTED PRIOR TO ASKING THE CITY TO OBLIGATE FUNDS? SURE. OKAY, GREAT.

SO SORT OF THE SAME TIME FRAME IS YOU'RE LOOKING TO BUTTON ALL THOSE UP BY THE END OF Q4.

YEAH. SO I MEAN MY MY PLAN IS TO, IS TO KEEP GOING FORWARD WITH WHAT WE'RE DOING HERE TODAY ALL THE WAY THROUGH TO THE FINANCING.

AND I THINK THAT WHAT WE NEED TO DO IS GO AHEAD AND GET IN MY MIND IS GET THE FINANCING IN PLACE WHEN THE CONTRACTS ARE IN PLACE AND EVERYBODY UNDERSTANDS WHAT IT IS.

AND THEN THEN WE JUST START MOVING FORWARD BECAUSE OUR, OUR UNDERWRITERS AND THE CITY'S FINANCIAL ADVISORS AND OUR FINANCIAL ADVISORS ARE, ARE ALL ON, ON BASE WITH THIS, AND THEY ALL KNOW ANOTHER ONE'S COMING.

AND, AND THE GOOD THING ABOUT THIS ONE IS, IS THAT ALMOST ALL THE DISCLOSURE DOCUMENTS ARE DONE.

I MEAN, THERE'S NOT ANY NEW DISCLOSURE THAT NEEDS TO WELCOME.

WE HAD DAVID COLLINS, BUT I JUST WANT TO SAY WE WANT TO BE VERY RESPECTFUL OF CITY COUNCIL.

THAT'S WHY WE'RE HERE TODAY.

AND WE WANT TO BRING YOU IN EARLY IN THE PROCESS BECAUSE.

FOR THE LAST TIME.

IT WASN'T DONE THE WAY I THE BEST POSSIBLE WAY.

[00:20:04]

THIS IS A HUGE THING FOR THE CITY AND THE WHARFS.

SO WE WANT TO MAKE SURE WE'RE ON THE SAME PAGE.

DAVID. ROGER, ARE WE TALKING WHEN YOU'RE TALKING ABOUT GETTING NEARING COMPLETION OF THE PROJECT, YOU'RE TALKING ABOUT MSC.

DOES THAT INCLUDE NORWEGIAN? WHAT? WHO ARE WE DEALING WITH HERE? RIGHT NOW? YOU KNOW, RIGHT NOW WE'RE DEALING WITH MSC.

AND FOR ME TO, TO TO GIVE YOU THE TERMS OF THOSE, I MEAN, I WOULD LIKE TO GIVE THOSE TO YOU.

I REALLY WOULD LIKE TO. YEAH.

BUT I'M NOT ASKING STAGE OF THE GAME AND, AND IN REALITY MSC IS WAITING FOR THESE MEETINGS TO SEE THE TEMPERATURE BECAUSE THEY SAW WHAT HAPPENED LAST TIME.

EVERYBODY SAW WHAT HAPPENED LAST TIME.

AND SO THEY'RE, THEY'RE THEY'RE WAITING WITH BATED BREATH TO SEE THIS THING, WHETHER THIS THING IS GOING TO MOVE FORWARD OR NOT, BECAUSE THEY'RE THEY'RE MAKING A BIG FINANCIAL COMMITMENT. THEY'RE WILLING TO MAKE CAPITAL CONTRIBUTIONS TO THE TRANSACTION.

AND YOU KNOW, BUT AND FOR US TO KIND OF PUT THAT INFORMATION OUT AT THIS STAGE.

BUT, I MEAN, YES, WHAT WE'RE REALLY LOOKING AT IS ANOTHER CONTRACT ALSO WITH ANOTHER CRUISE LINE, WHICH IS NORWEGIAN.

YOU'VE HEARD THAT IN THE NEWS.

THERE'S NO, YOU KNOW, AND I WILL TELL YOU THAT AS, AS OF THIS DATE THERE'S TWO MORE CRUISE LINES THAT HAVE HAVE GOTTEN WIND OF THIS TRANSACTION AND WANT TO BE INCLUDED.

SO OBVIOUSLY, GALVESTON IS VERY DESIRABLE TO THE CRUISE INDUSTRY.

THEY WANT TO BE HERE. AND I UNDERSTAND WHY THE.

BUT BUT WE'RE WE'RE LOOKING AT MSC.

WE IN ORDER TO MOVE FORWARD WITH SOMETHING OF THIS NATURE THIS SIZE WE HAVE TO HAVE MSC, RIGHT.

YEAH, I THINK SO.

I MEAN YEAH. YES.

YES WE ARE. AND BECAUSE AS I MENTIONED EARLIER, THE FINANCIAL STRENGTH OF THEM YOU KNOW, SHOULD GIVE US ALL COMFORT.

OKAY. THEN LET ME ASK A QUICK QUESTION ABOUT.

ABOUT THE TOTAL COST OF THIS.

I MEAN, THE 20 I'M ALL FOR VALUE ENGINEERING, BUT THE 2019 TOTAL FOR THESE MODIFICATIONS WAS SOME OF THE ORDER OF $179 MILLION IN OUR NEW PROPOSAL OF $100 MILLION.

THAT'S IT'S A BIG IT'S A BIG CHUNK.

WELL, AND LET ME LET ME COMMENT ON THAT.

I THINK WHAT WHAT YOU'VE GOT RIGHT NOW IS A LOT OF VALUE ENGINEERING.

WE'RE A LONG WAY OFF FROM THOSE NUMBERS NOW.

LOT, LOT LOWER THAN THOSE NUMBERS NOW THAT WE'VE GOTTEN IN THERE AND, AND HAD WE'VE HAD SOME COST ESTIMATION FROM THE CONTRACTOR, THEY'VE, THEY'VE WEIGHED IN ON THEIR, ON THEIR ORIGINAL $168,000 AND SAID, YOU KNOW, WE BELIEVE THIS IS THE NUMBER.

BA HAS SAID WE AGREE WITH THAT NUMBER.

THE, THE, THE FACTOR IS GOING TO BE WHETHER OR NOT YOU BUILD A PARKING DECK.

AND THAT'S GOING TO BE THE BIG FACTOR WAS HOW, HOW MUCH OF A PARKING DECK DO YOU NEED? AND, YOU KNOW WE KNOW THE COST.

I MEAN, IT'S $40 MILLION TO BUILD 1500 PARKING SPACES.

AND SO, YOU KNOW, WHEN YOU START TALKING ABOUT IN EXCESS OF 100 MILLION, THAT'S WHERE YOU ARE WITH WITH THE PARKING GARAGE.

IT LOOKS TO ME LIKE YOU'VE SEEN AN ALMOST 20% INCREASE IN THE COST OF CONSTRUCTION.

YEAH. AND WE WE SAW THAT WE SAW THAT FROM FROM GOING FROM CRUISE TERMINAL 10 TO 25.

YEAH I UNDERSTAND THAT.

AND THERE IS WHERE THERE ARE SOME I MEAN, I CAN TALK FREELY ABOUT THE PARKING GARAGE BECAUSE THERE ARE SOME WAYS THAT WE'VE BEEN INVESTIGATING ON BUILDING HALF A PARKING GARAGE AND HAVING AND TAKING THE PART OF THE PARKING GARAGE.

AND THERE'S SOME DRAWINGS IN HERE OF THE PARKING GARAGE TAKING HALF OF THE PARKING GARAGE WHERE THE RAMPS ARE AND WHERE THE CUSTOMERS WILL GO TO THE UP IN THE GARAGE AND MOVING CLOSER TO THE TERMINAL AND LEAVING THE WEST END OF THAT TO BE EXPANDED.

YOU KNOW, WE DON'T WANT TO WE DON'T WANT TO EXPAND ON TOP OF THE GARAGE, BUT WE BUT WE'VE BEEN TOLD WE CAN EXCUSE ME, WE CAN EXPAND TO THE WEST OF IT.

I WASN'T QUITE I HAVEN'T I WAS LEADING UP TO A QUESTION HERE WE HAVE I THINK REALLY I WAS REALLY LEADING UP TO A QUESTION HERE.

I MEAN, CLEARLY YOU WOULDN'T DO THIS IF IT DIDN'T HAVE THE IDEA OF THE CASH FLOW WAS GOING TO BE SUPPORT THIS.

WELL, THAT WAS MY COMMENT IS WE ARE ANXIOUS TO SHARE THE NUMBERS WITH YOU THERE.

I'LL JUST SAY THIS.

THEY'RE VERY COMPELLING.

I GET THAT MY MY CONCERN WOULD BE THE SIZE OF THE BOND.

I MEAN, BECAUSE WE'RE PROBABLY LOOKING AT AT LEAST $100 MILLION BOND.

AND THAT'S WHAT WE'VE, YOU KNOW, THAT'S WHAT WE'VE BEEN APPROVED BY OUR FINANCIAL ADVISORS.

AND AND ONE OF THE THINGS I WOULD TELL YOU, AND I WOULD SAY IT'S 150 MILLION IS WHAT THE ORIGINAL APPROVAL WAS, RIGHT? WE WE DID INTEND TO TRY TO GO AND DO ONE BOND OFFERING BECAUSE.

YOU KNOW WHEN YOU SEE THE COST THAT'S ASSOCIATED WITH ONE BOND OFFERING?

[00:25:04]

YES IT IS. WELL, OKAY, THIS WOULD ACTUALLY BE A QUESTION FOR MR. MAXWELL. WHAT IMPACT DOES THIS HAVE ON THE CITY'S BONDING CAPACITY? BECAUSE IT LOOKS, YOU KNOW, YOU SAY YOU'RE APPROVED FOR $150 MILLION.

YOU KNOW, IF WE COME BACK 100, 120 OF THIS, WE'RE GETTING CLOSE TO WHAT? CLOSE TO WHAT YOU CAN DO.

AND THERE SEEMS TO BE A LOT ON THIS LIST THAT OUT WEST AND ALL THAT STUFF THAT'S GOING TO THAT'S GOING TO PUT YOU IN A BIT OF A BIND IF YOU IF YOU, AS YOU BUILD OUT THERE.

JUST JUST FROM THE BOND POINT OF VIEW.

BUT SINCE THESE ARE GOING TO BE REVENUE BONDS, SINCE THEY'RE FULLY SECURED BY REVENUE BOARD.

SO THE CITY WOULDN'T NECESSARILY EVER HAVE TO BE WORRIED ABOUT PAYING OFF THE DEBT.

HOWEVER, WE HAVE TO CARRY THAT DEBT IN OUR FINANCIALS.

THAT'S MY QUESTION, IS I'M NOT WORRIED ABOUT PAYING IT OFF, YOU KNOW, BECAUSE I THINK CLEARLY THE CASH FLOW IS THERE.

BUT WHAT DOES IT DO THE NEXT TIME WE GO TO THE PUBLIC LOOKING FOR A $60 MILLION ROAD IMPROVEMENT BOND OR SOMETHING OF THAT ILK? YOU KNOW, I WILL TELL YOU THAT I DON'T KNOW EXACTLY EXACTLY WHAT THE EXACT IMPACT IS TO THE CITY, BUT I CAN ASSURE YOU THAT EVERY SINGLE BOND CALL WE'RE ON INVOLVES DISCUSSION OF IMPORTANCE OF DEBT WHEN IT COMES TO THE CITY'S BOND RATE.

ALL RIGHT. SO YOU WOULDN'T BE CONCERNED ABOUT THIS FOR ITS IMPACT ON FUTURE COST OF BONDS TO THE CITY.

YOU KNOW, IT JUST RIGHT NOW THE CITY'S WE HAVE A DOUBLE A PLUS RATING.

SO I'M NOT CONCERNED ABOUT IT.

GIVEN THAT IF THERE'S EVER ANY DIFFICULTY WITH BONDING AT THE BOARD, HE PROBABLY WOULD HAVE AN IMPACT ON US.

THAT'S MY CONCERN. IS WHAT WHAT POSITION THIS PUTS THE CITY IN, BECAUSE OBVIOUSLY, I MEAN, I THINK IT'S CLEAR YOU HAVE THE CAPACITY TO CARRY THAT THAT BOND.

WE'RE TALKING ABOUT 20 YEARS, RIGHT? RIGHT. BUT, YOU KNOW, IF YOU'D LIKE, WE CAN ASK FOR TO PREPARE A RESPONSE TO COUNCIL.

I THINK WE NEED TO KNOW THAT IF THE ANSWER IS IT'S NOT GOING TO NEGATIVELY IMPACT US, GREAT.

BUT BUT I DON'T WANT TO GET FIVE YEARS DOWN THE ROAD, WHICH I PROBABLY WON'T BE HERE.

BUT THERE'S A LOT OF SUBJECTIVITY IN OUR BOND RATING CALLS A TREMENDOUS AMOUNT OF SUBJECTIVITY.

SO ANYBODY THAT'S EVER DONE THOSE UNDERSTANDS THAT.

SO, YOU KNOW, ON I CAN TELL YOU, WE HAVE NO LEGAL OBLIGATION TO PAY ANY OF THE COURT DEFAULTS ON IT.

BUT I CAN TELL YOU THAT THAT DOESN'T WEIGH HEAVILY ON OUR.

YEAH, I WAS JUST GOING TO MAKE THAT MAKE THAT POINT.

IF IF THE FED WOULD JUST MAKE UP ITS MIND, WE'D ALL BE.

I THINK YOU WERE. YOU WERE GOING TO RESPOND.

I'M I'M GOOD.

THANK WILLIE I'LL JUST BE WILLIE.

AND THEN JOHN, THIS WAS PART OF OUR MASTER PLAN, BUT NOT OFF.

IN THE FUTURE, THINGS HAPPEN TO WHERE WE'RE ABLE TO HIT THIS WINDOW NOW, OBVIOUSLY.

AND. BUT CAN YOU TALK ABOUT THE IMPORTANCE OF MSC.

MSC AS A PARTNER BECAUSE OF THEIR, THEIR THEIR EXPERTISE WITH CARGO AS WELL, WHICH WE WILL BE NEEDING ON THE WEST END.

RIGHT. WELL, I MEAN, AS I MENTIONED IN THE INTRODUCTION THAT YOU KNOW, MSC IS A PRIVATELY HELD COMPANY.

AND SO, YOU KNOW, IT JUST WAS LEAKED A COUPLE OF MONTHS AGO THAT, YOU KNOW, THEIR NET WORTH WAS 80 BILLION.

AND BUT WITH THAT SET ASIDE, THEY ARE THE THIRD LARGEST CRUISE COMPANY NOW IN, IN THE WORLD.

I MEAN, THEY HAVE MORE SHIPS AND MORE PASSENGERS THAN EVERYBODY OTHER THAN CARNIVAL AND ROYAL.

SO THEY ARE VERY STRONG IN THIS INDUSTRY.

ONE OF THE THINGS THAT WE'RE PARTICULARLY FOCUSED ON, AND AS THEY ARE FOCUSING ON INTERNALLY, WE HAVE MET TWICE NOW WITH THEIR REPRESENTATIVES FOR THE CARGO BUSINESS, THE CONTAINER BUSINESS.

AND AND I WILL TELL YOU THAT THERE IS A LOT OF MOVEMENT WHEN WE THIS IS WHY I SAID A MINUTE AGO THAT THE RECEIPT OF THE GRANTS FROM THE STATE HAS OPENED THE EYES TO OUR CUSTOMERS, OUR, OUR STEVEDORE COMPANIES, AND, YOU KNOW, THEY ALL THEY WOULD LIKE TO INVEST IN THE WEST END AND, YOU KNOW THERE'S CERTAINLY ROOM FOR THAT.

AND SO, YOU KNOW, WHAT WHAT IT MEANS TO CARGO BUSINESS IS WHAT DO YOU WANT THE WEST END TO LOOK LIKE? I MEAN, DO YOU WANT THE WEST END TO BE SOMETHING THAT THAT IS OPERATED ENTIRELY BY A THIRD PARTY? AND OR DO YOU WANT THE PORT TO CONTINUE TO OPERATE IT WITH ON LEASE HOLD AND HAVE CONTRACTS WITH STEVEDORES AND, AND ALL OF THOSE CREATE MORE REVENUE THAN WE'VE EVER SEEN SINCE I'VE BEEN HERE AT THE, AT THE CARGO LEVEL.

SO, I MEAN, I THINK ONE OF THE THINGS WE'VE EVEN HAD ONE, ONE ENTITY WHEN WE GOT THE GRANT SAID, WE'LL MATCH IT.

SO, YOU KNOW, THERE'S THERE'S A LOT OF THERE'S A LOT OF PROS AND CONS TO, TO TO THE CARGO BUSINESS.

THERE'S A LOT OF PROS AND CONS WITH MSC IN THE CARGO BUSINESS BECAUSE THEY ARE CONTAINERS.

AND FOR CONTAINERS YOU NEED SPACE.

AND WE DON'T NECESSARILY HAVE THAT SPACE ON THE SOUTH SIDE.

YOU KNOW. THE.

THE FOCUS THEN TURNS TO, YOU KNOW, THE PROPERTY ON THE ON PELICAN ISLAND, AND CAN THAT BE TURNED INTO A CONTAINER PORT?

[00:30:09]

THE PROBLEM WILL, IS ALWAYS GOING TO BE RAIL SERVICE TO PELICAN ISLAND AND COST OF CONSTRUCTION, COST OF CONSTRUCTION ON PELICAN ISLAND IS GOING TO BE VERY EXPENSIVE. AS WE ALL KNOW.

IT'S A IT'S A FULL ISLAND.

AND IT'S NOT NECESSARILY A SOLID GROUND.

SO YOU'RE GOING TO BE DRIVING PILINGS PRETTY MUCH ANYTHING YOU BUILD OVER THERE.

BUT I THINK WHAT WILLIE WAS SAYING IS, IS THAT THE THERE'S A HUGE INTEREST IN CARGO IN GALVESTON.

ONE OF THE THINGS THAT AND I DON'T WANT TO THIS IS THIS IS ONE OF THE, THE, THE PLANS THAT I SEE.

AND IT'S VERY SIMILAR TO WHAT THE CITY HAS PLANNED FOR ACCESS TO ITS BEACHES IS TO DO THE SAME THING FOR ACCESS TO THE PORT, AND THAT IS TO ELEVATE HIGHWAYS, GETTING TO THE PORT, TAKING OFF THE TRAFFIC, THE THE COMMERCIAL TRAFFIC, THE CUSTOMER, THE THE CRUISING TRAFFIC, AS WELL AS TRAFFIC TO PELICAN ISLAND.

AND ONE OF THE THINGS THAT DOES FOR US, AND WE'VE HAD THE CONVERSATIONS WITH TXDOT, IT'S IN THE SGACC LONG TERM PLANS IS TO RAISE THAT HIGHWAY, RAISE HARBORSIDE, AT LEAST TO THE WEST PART OF THE CITY, AND ALLOW FOR FREE FLOW OF TRAFFIC UNDERNEATH HARBORSIDE DRIVE, BECAUSE THEN ALL OF A SUDDEN YOU HAVE A LOT MORE LAND.

AND I'M NOT SAYING THE PORT OWNS THAT LAND, AS WE KNOW, BUT THERE IS INTERESTED PARTIES THAT THAT OWN LAND THAT'S VACANT THERE.

AND AS YOU MAY OR MAY NOT KNOW, THERE'S 1,000,000FT² OF WAREHOUSING ON THE OTHER SIDE.

SO THIS THIS REALLY ALLOWS FOR CONTAINERS.

ONE OF THE THINGS I WOULD SAY TO SAY THAT WE WHAT WE ARE NOW JUST KIND OF WINDING DOWN IS A CONTRACT WITH A, WITH A CARRIER WHO HAS A CONTRACT WITH THE PORT FOR THE, FOR THE FOR THE SPACE, THE LAYDOWN SPACE.

AND THIS THIS IS NOT WHAT YOU WANT.

I MEAN, WHEN I INHERITED THIS AND WHAT IT AMOUNTS TO IS YOU'VE GOT SOMEBODY WHO'S MOVING CARGO, WHO ALSO CONTROLS WHERE THE CARGO IS MOVING TO AND WHAT CARGO MOVES THERE.

SO WHAT WHAT WE HAVE TO DO AND WHAT WE'RE DOING, WE'RE DOING IT.

WE WE HAVE SAID IT.

AND BRETT. BUT MILTON, YOU ALL KNOW HIM.

HE'S DONE A FANTASTIC JOB ON THE WEST END OF BRINGING THAT BRINGING THAT TO FRUITION.

SO WE HAVE WORKED HARD AND HAVE GOT ALL OF OUR LEASES SO THAT THEY WILL TERMINATE AT THE SAME TIME. AND WHAT'S IMPORTANT ABOUT THIS IS, IS NOW WE HAVE A LOT OF WE HAVE A LOT OF SMALL LEASES, AND NOW WE HAVE THE ABILITY TO MAKE A LARGE LEASE TO REALLY HAVE SOMEBODY WHO HAS WHEREWITHAL.

AND FOR INSTANCE, I'LL JUST SAY A STEVEDORING COMPANY HAS EVERY INCENTIVE TO BRING IN EVERY KIND OF CARGO THAT THEY CAN TO THE PORT, WHERE IF YOU'RE A CARRIER, YOU'RE YOUR INCENTIVE IS TO BRING YOUR CARGO TO THE PORT.

AND SO THIS IS THE BIG DIFFERENCE.

AND THIS IS WHERE WE'RE NOW.

WE NOW WITH THIS WITH THIS GRANT, I WOULD I WOULD JUST POINT HERE ON THE MAP IS BASICALLY WHAT WE'LL START DOING IS WE'LL WE'LL START BUILDING A WHOLE NEW BERTH, A WHOLE NEW WALL ALL THE WAY ACROSS HERE.

AND THAT'S WHAT THIS GRANT IS SUBJECT TO.

THIS GRANT IS, IS TO MOVE THE DOCKS OFF OF THE CURRENT DOCKS 8 TO 10FT.

AND THAT HELPS US DO TWO THINGS.

ONE OBVIOUSLY GETS US A NEW DOCK, AND THEN WE WILL BACKFILL EVERYTHING BEHIND THAT AND WITH PILES.

SO THEN THE STRENGTH WILL BE MOVED FORWARD.

AND THEN WHAT HAPPENS IS, IS THEN WE'RE ABLE TO GET TO DEEPER WATER BECAUSE YOU DON'T.

ONE OF THE THINGS THAT WE HAVE HERE AT THE PORT OF GALVESTON IS WE'RE LUCKY WE'RE DREDGED TO 46FT WHEN WHEN WE CAN BE DREDGED TO 46FT AND OUR DOCKS ARE NOT.

SO IF YOU IF YOU CAN UNDERSTAND THAT A DOCK, YOU KNOW, THERE'S A WALL AND THEN THERE'S A BERTH ON TOP OF THE DOCK, AND THAT IS ALL PILE SUPPORTED.

AND IF YOU IF YOU TRY TO COME UP TO THAT DOCK AND DREDGE TO THAT DOCK, THOSE DOCKS WERE NOT WERE BUILT A LONG TIME AGO.

SO YOU CAN'T HANDLE THE DEPTH.

I MEAN, THAT WAS BACK WHEN IT WAS 30FT, 36FT.

WE WERE AUTHORIZED AT 30 SOME FEET.

AND SO THOSE DOCKS WERE BUILT FOR 30FT.

SO WE HAVE TO BUILD NEW DOCKS OUT THERE FOR MORE DEPTH.

AND SO THAT'S THE THAT'S THE POINT IS MOVE IT OFF THE OFF THE DOCKS.

YOU GET INTO DEEPER WATER IMMEDIATELY AND THEN WE'LL BE BUILDING FOR 50.

FEET. ROGER MENTIONED OUR PLAN FOR BACKFILLING THOSE SLIPS.

[00:35:04]

ONE OF THE THINGS THAT WE HAVE NOT CONTRACTED FOR IS THE FILL MATERIALS.

AND THE FILL MATERIALS ARE ARE YOU THINK? OH, MAN, YOU CAN FILL THAT THING WITH ANYTHING.

WELL, BUT YOU CAN'T. YOU HAVE TO BUILD.

YOU HAVE TO FILL IT WITH SOMETHING THAT HAS SUBSTANCE TO IT THAT YOU CAN BUILD ON TOP OF IT.

YOU CAN POUR CONCRETE ON TOP OF IT.

SO ONE OF THE ONE OF THE THINGS WE'RE LOOKING AT, OBVIOUSLY THIS BUILDING, YOU MAY OR MAY NOT KNOW IT I DON'T KNOW, BUT THIS BUILDING HERE IS GOING TO BE DEMOLISHED, WHICH IS THE LIBERTY BUILDING.

THEY'VE ALREADY ANNOUNCED THAT THEY'RE GOING TO TAKE THAT BUILDING DOWN.

SO THERE'S GOING TO BE MATERIALS FROM THAT.

WE ARE WE'RE TALKING TO THE OWNERS OF THAT BUILDING TO CRUSH THOSE MATERIALS AND USE THEM AS SLIP FILL.

AND OBVIOUSLY YOU'VE SEEN WHAT'S HAPPENED AT ADM AND ADM NOW, WILL WE HAD A GREAT RELATIONSHIP WITH THEM FOR MANY, MANY YEARS, BUT IN A WAY, IT WASN'T FAIR TO THEM.

I MEAN, BECAUSE THEY WE COULD NEVER GIVE THEM THE WATER THAT THEY NEEDED FOR THE TO BE ABLE TO, TO FILL THE SHIPS.

I MEAN, THEY NEEDED 46FT FOR REALLY 43FT ALL THE TIME TO FILL THOSE SHIPS AND, AND THE, THE DREDGED MATERIALS AND THE SILT COMES, YOU KNOW, IT'S UNFORTUNATE, BUT IT COMES IN HERE AND IT STOPS RIGHT HERE.

SO WE'RE ALL THE TIME HAVING TROUBLE HERE.

SO IT WAS IN A WAY IT WAS IT WAS A GOOD THING FOR US BECAUSE WE WERE WE WERE GUARANTEED $2 MILLION A YEAR IN REVENUES FROM THAT.

BUT SO THEY WERE WRITING CHECKS TO FULFILL THEIR GUARANTEES BECAUSE THEY COULD NEVER GET THE MATERIALS WE HAVE.

COUNCILMAN. LISTOWSKI.

AND IF WE COULD OUR ITEM IS CRUISE TERMINAL 16.

SO IF WE COULD STAY ON THAT, I'LL TRY TO STICK TO THAT.

ROGER, TELL ME AGAIN.

WHEN DO YOU THINK YOU WOULD HAVE A CONTRACT SIGNED WITH MSC? I WOULD SAY WITHIN THE NEXT 30 DAYS.

OKAY. AND I WILL TELL YOU, THEIR INTEREST OBVIOUSLY, IS A TWO YEAR SELLING PERIOD FOR THEIR TICKETS, FOR TICKETS TO THE FOR THE CRUISES AND IF ANYTHING, IF EVERYTHING WOULD WORK OUT BY MID-SUMMER OF 2025.

WE COULD IN FACT HAVE THAT TERMINAL COMPLETED.

SO THEY'RE VERY ANXIOUS IN NOVEMBER OF 2023 TODAY OF PUTTING THAT ON THE MARKETPLACE FOR SALE.

SO THIS IS THE CRUISE LINE'S TAKE AT LEAST A COUPLE OF YEARS TO THEY WANT THEY WANT TO BE ABLE TO YOU KNOW, SO WE WE TECHNICALLY HAVE SCHEDULES OF SHIPS FOR MOST CASES IN 22 YEARS IN ADVANCE.

SO THIS IS WHERE OUR BUDGETING PROCESSES AND THINGS LIKE THAT ARE, ARE A LITTLE BIT EASIER BECAUSE WE KNOW WHO'S COMING WHEN THEY'RE COMING, WHAT SHIPS ARE COMING.

SO WE CAN BUDGET THAT PRETTY GOOD.

AND I THINK WHAT THE ANSWER YOUR QUESTION IS, IS THAT THAT'S THAT'S THE MAIN REASON THEY WOULD LIKE TO HAVE A CONTRACT.

NOW IT'S VIC, YOU HAD MENTIONED THAT THAT CONTRACT WOULD COME TO COUNCIL HERE FOR US TO REVIEW.

DID YOU? I THINK ROGER MENTIONED THAT, BUT YES, WE'D HAVE HAD WE'D GET YOUR INPUT BEFORE WE WOULD VOTE ON IT AT THE PORT.

THAT'S GOOD. JOHN.

SO YOU THINK WE WOULD SEE THAT CONTRACT IN DECEMBER? I WOULD SAY NOVEMBER.

SO WE HAVE A MEETING ON THE 16TH.

16TH. YOU THINK WE WOULD HAVE A CONTRACT BY THE 16TH? WELL, AT OUR COUNCIL MEETING.

YEAH. AND I THINK I THINK WE WOULD NEED TO HAVE A REVIEW PERIOD FOR THAT.

RIGHT. I THINK WE WOULD NEED TO GET TOGETHER AT SOME POINT IN TIME TO PRESENT THAT TO YOU OR GIVE YOU ACCESS TO IT, SO YOU CAN SEE WHAT THE TERMS OF IT ARE, BECAUSE MAYBE I KNOW HOW BAD IT IS.

YEAH, I KNOW HOW BAD IT IS TO GET SOMETHING RIGHT HERE.

AND THEN ALL OF A SUDDEN I GOT A VOTE ON IT, RIGHT? BECAUSE I HEARD THAT I HEARD THAT LAST TIME.

AND SO, SO I THINK, YOU KNOW, AS, AS SAID, MAYBE WE WILL, YOU KNOW, WE'LL HAVE A SPECIAL MEETING.

I MEAN, I DON'T LIKE TO, TO SAY, LET'S HAVE A SPECIAL MEETING BECAUSE, I MEAN, I KNOW EVERYBODY HAS THEIR OWN LIVES AND THEN THEY HAVE THEIR OWN TIME AND OWN THING GOING ON.

BUT WE DON'T HAVE A LIFE.

WE DON'T GET PAID. WE DON'T HAVE A LIFE.

IT'S 50 HOURS A WEEK.

WELL, I AM CONSCIOUS OF YOUR TIME, AND WE'RE TRYING TO BE RESPECTFUL OF THE PROCESS AND RESPECTFUL TO CITY COUNCIL.

AND BUT IT'S HARD AS YOU'RE THE CHICKEN OR THE EGG WHICH, WHICH COMES FIRST.

AND THAT'S KIND OF WHAT WHERE WE'RE STUCK.

BUT WE DO KNOW WE NEED SIX VOTES FOR THE FINANCING.

SO WE'RE VERY COGNIZANT OF THAT.

SO IT'S VERY IMPORTANT THAT WE START AT THE FRONT END RIGHT KEEPING.

MAKING SURE WE'RE ON THE SAME PAGE.

WELL, THAT'S WHY I APPRECIATE THE DEFERRAL OF THE $7 MILLION CONTRACT AT MY LAST MEETING TUESDAY.

[00:40:09]

WE CAN ALL BE INVOLVED ON THIS, AND WE CAN.

THAT'S EXACTLY WHY.

CORRECT SEQUENCE HERE.

ON 16, ON CRUISE TERMINAL 16, YOU TALK ABOUT THE PARKING GARAGE AND THE PARKING GARAGE BEING YOU KNOW, MAYBE WE DO THE PARKING GARAGE, MAYBE WE DON'T.

AND I AND I BROUGHT THIS UP SEVERAL TIMES ABOUT DOING OTHER THINGS ON THE PROPERTY TO JUST TAKE ADVANTAGE OF THE GREAT LOCATION AND ASSET THAT WE HAVE THERE.

I UNDERSTAND IN OUR CONVERSATIONS, OF COURSE, THAT THAT MIGHT BE DIFFICULT TO DO ON EXISTING BUILDINGS, BUT SOMETHING LIKE A NEW PARKING GARAGE, I MEAN, AND THIS GOES TO THE MASTER PLAN, TOO, A LITTLE BIT, YOU KNOW, CAN WE START LOOKING AT OTHER THINGS TO DO WITH THE PROPERTY? I MEAN, WE'VE GOT THESE TERMINALS THAT SIT THERE AND WE USE THEM 3 OR 4 DAYS A WEEK.

THEY SIT THERE THE REST OF THE TIME.

THE GENERAL PUBLIC AND THE CITIZENS OF GALVESTON DON'T DON'T USE THOSE UNLESS THEY GO ON A CRUISE.

AND SO ARE THERE OTHER THINGS THAT WE CAN MAXIMIZE THE POTENTIAL OF THE PROPERTY AND POSSIBLY HELP OUT DEVELOP THE PROPERTY? I MEAN, YOU KNOW, THIS PARKING GARAGE IS A NEW STRUCTURE.

WHY NOT GO OUT FOR AN RFQ ON WHAT WE COULD DO ON TOP OF THE PARKING GARAGE, YOU KNOW, HOTEL, CONDO, RESTAURANT, RETAIL.

AND THEN JUST LOOKING AT YOUR SITE PLAN HERE, YOU'VE GOT ALL THESE SURFACE LOTS AROUND THERE.

YOU KNOW, IT'D BE GREAT IF WE COULD LOOK AT OTHER THINGS BESIDES PARKING LOTS ON ALL THIS PROPERTY.

I MEAN, WE COULD STILL PARK THERE IN A PARKING GARAGE AND THEN GO VERTICAL WITH STRUCTURES ABOVE TO TO TO DO OTHER THINGS THAT THAT WOULD PROBABLY BENEFIT OUR CITIZENS AND HAVE OTHER USES AND BRING IN ADDITIONAL REVENUE AND PARTNERS THAT COULD HELP WITH THE INFRASTRUCTURE COSTS TO BRING UTILITIES AND THINGS LIKE THAT TO THE PROPERTY. YEAH, I'D KIND OF LIKE TO ADD I CAN ADDRESS THAT.

YEAH. HOLD ON. I MEAN, BECAUSE WE HAVE INQUIRED EXCUSE ME, ROGER, JUST A SECOND.

I WANTED TO ADD TO THAT BECAUSE I KNOW THAT, ROGER, YOU AND I HAVE HAD CONVERSATIONS ABOUT THE HIGHEST AND BEST USE OF THAT PROPERTY OVER THERE AS WELL.

AND YOU MENTIONED EARLIER THAT ONE, WE'RE ON THE RADAR SCREEN OF EVERYBODY THAT WE'RE ON THE MAP GLOBALLY REGARDING CRUISES.

I THINK THIS IS A GOOD OPPORTUNITY FOR US TO TAKE ADVANTAGE OF THAT WITH THE RIPENESS OF THE DEVELOPMENT COMMUNITY THAT WANTS TO INVEST IN THE CITY, IN THE PORT.

AND YOU MIGHT LOOK TO THE DEVELOPMENT COMMUNITY TO HELP ACCELERATE SOME OF THESE PROJECTS, TO COME UP WITH CREATIVE IDEAS FOR THE HIGHEST AND BEST USE FOR THOSE PROPERTIES, AS WELL AS HELPING TO REDUCE THE FIRST COST TO THE PORT AND CITY THROUGH A DEVELOPMENT AGREEMENT.

THE OTHER THING IS, IS THAT RIGHT NOW, AS A CRUISE BUSINESS, WE'RE AN ORIGINATION POINT, RIGHT? WE'RE NOT A DESTINATION. I KNOW WE'LL NEVER TRULY BE A DESTINATION, BUT I THINK THAT THERE'S OPPORTUNITY AGAIN ON HOW TO LEVERAGE YOUR POSITION THAT YOU'RE IN RIGHT NOW AND ENCOURAGE DEVELOPMENT THAT WOULD SUPPORT EITHER A STAY AT THE FRONT END OR THE TAIL END.

FOR THOSE TRAVELERS, I MEAN, WE KNOW THAT WE'RE UNDERSERVED IN TERMS OF HOTELS.

WE'VE ONLY GOT ONE FULL SERVICE HOTEL DOWNTOWN.

I'M SORRY, OUR HARBOR HOUSE IS ONE TWO, BUT THERE'S GREAT OPPORTUNITY THERE.

AND SO I JUST ENCOURAGE ALL TO, TO TO COUPLING OR JUST COUPLING ON WHAT? COUNCIL MEMBER LISTOWSKI SAID.

SO THANK YOU. SURE.

AND LET ME ADDRESS THAT. I MEAN, FIRST OFF, AT ONE POINT IN TIME, I THINK THERE WAS A CONVERSATION ABOUT TRYING TO BUILD A HOTEL ON TOP OF THE CRUISE TERMINALS.

WELL, AND WE'VE GONE TO THE COAST GUARD, AND A LOT OF PEOPLE DON'T REALIZE OR SOMETIMES DON'T BELIEVE IT, BUT THE COAST GUARD RUNS THE CHANNEL, AND ANYTHING THAT HAPPENS IN THAT WATER, EVEN THOUGH IT'S A FEDERAL CHANNEL.

SO ANYTHING THAT HAPPENS OUT THERE, WE REALLY DON'T HAVE MUCH.

WE HAVE A LITTLE BIT OF OF CONTROL OVER OUR OWN BERTHS.

BUT ONCE YOU GET IN THE WATER, THE COAST GUARD RULES.

AND ONE OF THE THINGS AND WE WENT TO THE COAST GUARD AND TALKED ABOUT, YOU KNOW, I MEAN, IF YOU JUST THINK ABOUT IT, A HOTEL ON TOP OF A CRUISE TERMINAL, YOU'VE GOT TO JUST UNDERSTAND, I WASN'T TALKING ABOUT PUTTING A HOTEL ON TOP OF THE THE CRUISE TERMINAL BUILDINGS, BUT YOU'VE GOT A PARKING GARAGE THAT IS A NEW STRUCTURE GROUND UP THAT'S OUTSIDE OF A SECURED AREA.

AND SO THAT'S IF YOU COULD ADDRESS THAT MAYBE.

YEAH, I CAN ADDRESS THAT BECAUSE I AND I HEAR WHAT YOU'RE SAYING OUTSIDE OF THE SECURED AREA.

THE BOTTOM LINE FOR FROM OUR STANDPOINT, OUR BIGGEST FEAR FROM A SECURITY STANDPOINT IS AN ACTIVE SHOOTER.

OKAY. SO WE GO THROUGH MANY, MANY HOURS OF ACTIVE, ACTIVE SHOOTER TRAINING.

OUR OUR POLICE DEPARTMENT.

DO YOUR YOUR POLICE DEPARTMENT PARTICIPATES WITH US IN THOSE THOSE TRAININGS.

AND ONE OF THE THINGS THAT IS THE BIG CONCERN IS IF.

YOU HAVE A HOTEL THAT'S SITTING THERE AND THE YOU'VE GOT THE BALCONIES POINTING DIRECTLY AT THE BALCONIES OF AND IT'S YOU'RE RIGHT, IT'S NOT

[00:45:08]

I MEAN, YOU'RE TALKING ABOUT, YOU KNOW, 300 YARDS OR SO WHERE THE PARKING GARAGE WILL BE AND REALLY NOT EVEN THAT MUCH, YOU KNOW, I MEAN, WE CURRENTLY HAVE A HOTEL THAT'S RIGHT ON THE PORT, RIGHT.

BUT IT'S NOT THERE'S NO CRUISE SHIPS RIGHT THERE.

I MEAN, AND I HEAR WHAT YOU'RE SAYING.

YEAH. I MEAN, IT DOESN'T MATTER.

THE ACTIVE SHOOTER COULD IF HE WANTS TO SHOOT THAT WAY OR THAT WAY, HE HE COULD DO THAT.

BUT IT'S NOT. IT DOESN'T.

THE ROOMS DON'T FACE THE WATER IN IN ESSENCE, WHAT YOU WOULD BE TALKING ABOUT IS IF YOU BUILD A HOTEL AND LET'S SAY ON TOP OF THE PARKING DECK, HOW FAR BACK AWAY FROM THE WATER.

WOULD YOU FEEL SAFE? 3000 YARDS? NO, I MEAN, NOWHERE TO BE.

NOWHERE. NOWHERE, TO BE HONEST WITH YOU, ROGER.

IT CAN HAPPEN ANYWHERE IN THE STATE.

IN THE CITY, RIGHT? ROGER, ARE YOU SAYING THAT THE COAST GUARD IS AGAINST THAT? OR ARE YOU PERSONALLY FEEL THE COAST GUARD IS AGAINST? THE QUESTION WE POSED IS HOTEL ON TOP OF THE CRUISE TERMINAL I GOT YOU, AND I WANT TO.

I WANT TO POINT ALSO TO THE MASTER PLAN, BECAUSE THE MASTER PLAN TALKS ABOUT A RESIDENTIAL MARINA COMPLEX BETWEEN CRUISE, WHERE CRUISE TERMINAL TEN IS NOW AND WHERE CRUISE TERMINAL 16 WILL BE.

RIGHT, WHICH IS PIER 14, WHERE WE HAVE PARKING THE MASTER PLAN.

AND IF YOU'LL IF WE GET A CHANCE.

AND I KNOW I'M TAKING A LOT OF TIME, BUT IF WE GET A CHANCE TO LOOK AT THE MASTER PLAN, YOU'LL SEE WE HAVE WE HAVE PLANS IN THERE FOR DEVELOPMENT OF A RETAIL SLASH RESIDENTIAL.

AND LET ME PUT IT THIS WAY, WHATEVER YOU WANT TO BE, PIER 14, WHICH IS THIS AREA RIGHT HERE.

THIS RIGHT HERE IS NOT LONG ENOUGH.

WE COULDN'T PUT IT. THIS WOULD BE IDEAL PLACE TO PUT ANOTHER CRUISE TERMINAL.

I MEAN, I MEAN, JUST SAY THAT I KNOW IT'S A DIRTY WORD WHEN I SAY THAT, BUT THE BOTTOM LINE IS WE COULD PUT ANOTHER CRUISE TERMINAL HERE IF, YOU KNOW, IT COULDN'T TAKE THE.

I MEAN, THE SHIPS ARE GROWING AND GROWING AND GROWING AND GROWING.

SO HE COULDN'T TAKE THE SHIP THERE.

BUT THIS WHOLE AREA RIGHT HERE IS COULD BE USED FOR THAT.

IN OUR MASTER PLAN, WE HAVE DRAWINGS OF MARINAS GOING IN THERE.

THIS THIS IS TO ME.

I MEAN, I KNOW IT'S NOT HERE, BUT I THINK HERE WITH BETWEEN TWO CRUISE TERMINALS, IT'S THE PERFECT AREA FOR SOMETHING LIKE THAT.

AND I'M NOT I MEAN, YEAH, IT SOUNDS GREAT THERE.

I MEAN, THAT'S FINE TOO. I'M JUST SAYING IF YOU'RE IF YOU'RE LOOKING FOR PARTNERS AND MONEY, WHY NOT REACH OUT TO THE PRIVATE ENTITIES OUT THERE THAT WANT TO DEVELOP HERE ON THE ISLAND AND PARTNER WITH THESE GUYS TO SAVE MONEY? I MEAN, WELL, AND I DON'T I DON'T REALLY UNDERSTAND THE THE REAL PUSHBACK THERE ON I DON'T THINK THERE'S ANY PUSHBACK.

EVERYTHING'S ON THE TABLE.

WELL, I THINK THE ONLY PUSHBACK THAT I HAVE IS TIME.

YEAH. HERE'S THE TIMING BECAUSE, YOU KNOW, AND HERE AGAIN AND THAT'S VALID I MEAN I CAN.

WELL, AND ALSO I WOULD SAY TO YOU THOUGH THAT THIS IS THE REASON YOU SEE SO MUCH PARKING ON THE GROUND.

RIGHT? BECAUSE IT CAN ALWAYS BE DONE LATER ON.

AND THAT'S WHAT'S WHAT YOU'VE GOT HERE IS WE'VE GOT, YOU KNOW, YOU GOT TEN ACRES, WHICH IS A CRUISE TERMINAL.

WHAT YOU HAVE HERE IS 25 ACRES, REALLY ALMOST 35 ACRES NOW BECAUSE THE ORIGINAL OUR ORIGINAL PLAN WAS NOT TO DEVELOP THIS INTO PARKING, BUT THEN THEN WE REALIZED, WHAT'S IT DOING NOW? WHY WOULDN'T WHY NOT? WHY DON'T USE IT FOR TOURISM TO TO GENERATE REVENUES.

SO ALL OF THIS IS DEVELOPABLE.

I MEAN THAT'S AND I'VE SAID THIS, WE'VE HAD THIS DISCUSSION AT OUR MEETINGS WHERE, WELL, I DON'T LIKE SEEING ALL THIS SURFACE PARKING, BUT, YOU KNOW, ALL YOU'RE DOING IS BANKING THE LAND.

YOU'RE SITTING HERE SAYING, I'M GOING TO PUT PARKING HERE.

AND BY THE WAY, WE SPENT $9 MILLION ON THAT.

WE'VE WE'VE GOT THAT MONEY BACK ALREADY.

AND THAT'S GREAT. AND I AGREE WITH THAT.

IT'S AND THAT'S WHERE IT GOES INTO THE MASTER PLAN.

TALK ABOUT YOU KNOW WHAT.

LET'S TALK ABOUT WHAT WE WANT TO SEE IN THE FUTURE.

AND AND EVEN THE PARKING THAT'S ASSOCIATED WITH 16 HERE THAT ARE SURFACE LOTS.

YOU KNOW, IN THE FUTURE THOSE COULD BE RETAIL.

THOSE COULD BE I WILL TELL YOU THINGS AND IT WOULD LINK THE DOWNTOWN AREA MUCH BETTER THAN ALL THE WAY DOWN IN THIS, THIS PROPERTY RIGHT HERE, WHICH IS GOING TO BE DEMOLISHED. YEAH. THAT WILL BE ADDITIONAL LAND.

THAT THE OWNERS OF THAT AND I KNOW THEY CALL YOU EVERYBODY KNOWS WHO THE OWNERS OF THAT IS.

THEY'RE THEY'RE OPEN.

I MEAN, THEIR, THEIR PLAN IS TO PUT SURFACE PARKING IN THERE.

I MEAN, BECAUSE YOU CAN ALWAYS DO SOMETHING LATER.

WHAT WE HAVE IS ABOUT 700 SPOTS FOR THIS TERMINAL ON THE GROUND.

SO WITH A 1500 PARKING DECK, THEN ALL OF A SUDDEN YOU'VE GOT A LOT OF PARKING, BUT NECESSARILY THE COST, YOU KNOW, DO WE WANT TO INCUR THE COST AT THIS STAGE, $41 MILLION TO GET THAT DONE?

[00:50:06]

WHAT THIS WHOLE IDEA IS, IS ALL THIS ALONG THROUGH HERE, WHICH IS HARBORSIDE, HARBORSIDE DRIVE FRONTAGE PROPERTY IS STILL AVAILABLE.

YEAH. I MEAN, WE BUILD TERMINALS THERE, IT'S STILL THERE AND THAT'S FINE.

I MEAN, THAT'S A VALID THAT'S A VALID REASON TIME WISE.

I LIKE THAT BETTER THAN THE ACTIVE.

TIME IS WHERE I AM, BECAUSE THE ACTIVE SHOOTER CAN GO UP IN THAT PARKING GARAGE AND DO THE SAME THING.

WELL, YOU KNOW, ONE OF OUR CONCERNS IS THIS LITTLE PARKING GARAGE WE GOT RIGHT HERE ACROSS THE STREET FROM OUR BUILDING.

YOU KNOW, WE'VE GOT HARD IN THAT PARKING LOT BECAUSE THERE'S PLACES THERE THAT SOMEBODY COULD BE THAT DO THAT.

YEAH. PROCEDURALLY.

LET ME DO THIS.

IF YOU WOULDN'T MIND. I THINK WE'RE ROLLING INTO THIS, SO I'M GOING TO MAKE IT OFFICIAL.

JANELLE, WOULD YOU READ THREE B, PLEASE, MA'AM?

[3.B. Discussion Of An Update Of The Port’s Master Plan (Part 1 of 2)]

ALL RIGHT. SO NOW WE'RE GOING TO OPEN THIS DISCUSSION AND GET BACK TO WHERE WE I LIKE IT TECHNICALLY SHOULD BE ON THIS.

I'M GOING TO MOVE TO MARIE.

AND THEN WE HAVE JIM YARBOROUGH.

I'LL WAIT ON MY COMMENTS.

OKAY. JIM. THANKS, CRAIG.

LET ME START BY SAYING I HAVEN'T TALKED TO ROGER ABOUT THE DETAILS OF AN MSC CONTRACT.

PICKED UP PIECES OF CONVERSATIONS.

I MISSED THE MEETING THE OTHER DAY.

SO I DON'T HAVE, QUOTE, CURRENT STATUS.

BUT, YOU KNOW, WHEN I LOOK AT THIS WHOLE THING, YOU'RE TALKING $150 MILLION PROJECT.

WHAT YOU'RE LOOKING AT. ALL OF THAT IS THE TERMINAL PART OF.

IT'S A PARKING DECK.

I'M ON BOARD FOR THE PARKING DECK.

PERIOD. YOU'RE TALKING 20 YEAR BONDS AGAIN.

I HAVEN'T PUT THE NUMBERS LIKE ROGER HAS, BUT I IMAGINE THE PAYBACK ON A PARKING DECK IS PROBABLY SIX YEARS OR LESS IF YOU PUT THE MONEY BACK IN.

IF YOU TALK TO MARK MURCHISON.

OVERWHELMING PART OF OUR NET INCOME EVERY MONTH IS CRUISE PARKING.

SO WE NEED TO FOSTER THAT.

WE NEED TO CAPTURE AS MUCH OF THAT MARKET AS WE CAN AND GET IT DONE AS FAST AS WE CAN.

THIS CONTRACT AGAIN.

I HAVEN'T TALKED TO ROGER. I DON'T WANT TO DISCLOSE ANYTHING.

I'M NOT SUPPOSED TO, BUT OUR PRIOR CONTRACT HAD A CAPITAL RECOVERY FEE, SO WE'RE NOT GOING TO PAY ALL THIS BACK OURSELVES.

PASSENGERS ARE GOING TO PAY IT BACK THROUGH SOME TYPE OF CAPITAL RECOVERY FEE.

I KNOW THE BOARD HAS TALKED TO ROGER, AND I KNOW HE'S INCLUDED THAT IN CONVERSATIONS.

THERE MAY BE SOME CAPITAL FROM THE CRUISE SHIP TERMINAL INTO THIS PROJECT AS WELL, EITHER IN THE FORM OF TRUE CAPITAL OR MAYBE DEBT SECONDARY OR SOME TYPE OF SUBORDINATED DEBT.

SO THEY'RE GOING TO BE A PARTNER, WHICH IS WHAT WE WANT.

WE WANT THEM HOOKED INTO US WHERE THEY'RE COMING HERE.

TO ME, THE BIG ISSUE IS, IS OPPORTUNITY COST FROM MY PERSPECTIVE.

THERE'S NO QUESTION ANYTHING WE PUT INTO PARKING, ANYTHING WE TURN INTO CREWS IS GOING TO OUTPACE THE RETURN ON ASSETS, RETURN ON INVESTMENT OVER CARGO.

HOW MUCH IS TOO MUCH? HOW MUCH MORE TRAFFIC IN THE COMMUNITY? I AGREE THE PELICAN ISLAND BRIDGE PROJECT OUGHT TO BE KNOWN AS A PELICAN ISLAND TO I-45 PROJECT, NOT JUST FROM PELICAN TO 51ST AND HARBORSIDE. WE'VE GOT TO GET OVER THOSE RAILROAD TRACKS.

WE GOT TO GET A FLYOVER RIGHT OFF 45.

WE'VE GOT TO DO A LOT OF THINGS, AND I KNOW CRAIG AND HJK AND ROGER, THAT'S 20 YEARS FROM NOW, BUT HOW MUCH MORE CAN THE COMMUNITY HANDLE? ADM LEAVING IS A GAME CHANGER IN MY MIND.

NOW ALL OF A SUDDEN, INSTEAD OF HAVING A LITTLE POSTAGE STAMP WHERE THE PROPERTY RIGHT DOWN THERE WITH THOSE SLIPS ARE, NOW, WE'VE GOT A MUCH BIGGER CARGO POTENTIAL.

IN MY MIND, WE HAVEN'T FULLY VETTED THAT AS TO WHAT WE COULD DO OR WHAT IT'S POSSIBLE WITH THE ADDITION OF HAVING THAT.

HOW MANY ACRES IS IT? ROGER? 22. 22 ACRES AVAILABLE TO BLEND INTO THE CARGO SIDE.

SO THE QUESTION TO ME IS JUST THE OPPORTUNITY COST.

ROGER MENTIONED THAT FROM OUR FINANCIAL ADVISORS AND FOLKS, WE GOT ABOUT $150 MILLION CAPACITY.

WELL, FOLKS, WE'RE PUSHING IT ALL ON THE TABLE, ISN'T IT? FROM A DOLLAR? DOLLAR RETURN IS PROBABLY THE BEST, BEST DECISION, BUT WE'RE GOING TO FOREGO THE ABILITY OTHER THAN WHATEVER CASH FLOW WE CAN GENERATE INTERNALLY FOR NON CRUISE CAPITAL INVESTMENT.

THAT'S WHY I THINK FROM MY PERSPECTIVE, IT'S REAL IMPORTANT THAT WE PUT THE RFP OUT TO SEE WHAT THE PRIVATE SECTOR CAN DO.

[00:55:06]

MY SUSPICIONS ARE IF WE GO OUT TO THE PRIVATE SECTOR AND THEY SAY WE'LL PUT UP $200 MILLION, THEY'RE GOING TO SAY, PORT, WE WANT YOU TO PUT UP 50 SOME NUMBER AS CAPITAL INJECTION.

WHERE DOES THAT COME FROM? SO I JUST WANT TO MAKE SURE WE'VE GOT THIS THING SINKED OUT WHERE WE KNOW WHAT OUR OPTIONS ARE ON THE NON CRUISE SIDE TO SEE IF THAT'S SOMETHING WE WANT TO DO BEFORE WE SPEND ALL OF OUR RESOURCES AND NOT HAVE AVAILABILITY OF CASH.

IF SOME GOOD DEAL COMES ABOUT WITH RESPECT TO.

ALL THIS STUFF. ROGER'S TALKING ABOUT PARKING DECKS.

LIPTON TEA.

I COMMEND THE PORT. THEY'VE DONE A GOOD JOB OF BANKING THE LAND WITH PARKING, GETTING REVENUE OFF OF BASICALLY IDLE LAND THAT WE WEREN'T USING AND UNDER-PRODUCING MAYBE THAT'S AN AREA THAT THE CITY AND THE PORT OUGHT TO.

TYING INTO YOUR ITEM THREE B DOCK.

MAYBE WE OUGHT TO SPEND A LITTLE OF INDUSTRIAL DEVELOPMENT CORPORATION'S MONEY.

TO MASTER PLAN THAT PARKING.

YEAH. THAT'S GREAT.

IT'S ALWAYS GOOD TO SPEND SOMEBODY ELSE'S MONEY.

BUT MAYBE WE OUGHT TO SPEND A LITTLE MORE MONEY BEFORE WE SAY.

I MEAN, WE ALL WANT A PARKING GARAGE, I THINK BEFORE WE SAY, HEY, THAT'S WHERE IT'S GOING TO BE.

LET'S SPEND A LITTLE MORE MONEY IN TIME LOOKING AT ALL THAT FROM 27TH STREET BACK TO 10TH STREET AND REALLY DO SOMETHING.

AND THAT MAY INCLUDE GETTING FERTITTA'S OPERATION.

ONE THING ABOUT FERTITTA, IF HE DOES IT, IT'S GOING TO GLITZ.

IT'S GOING TO BE SOMETHING YOU CAN BE PROUD OF.

AND SO, YOU KNOW, HE'S GOT PARKING NEEDS, THE HOTEL.

WE JUST NEED A LITTLE MORE, MAYBE THOROUGH INVESTIGATION OF THAT OPEN PROPERTY BEFORE WE MAKE FINAL DECISION DOESN'T DOESN'T PRECLUDE US FROM MOVING FORWARD WITH 16 BUILDING THE TERMINAL.

I DON'T WANT TO SLOW THAT DOWN IF THAT'S IT'S AN INTEGRAL PART, BUT IT'S NOT A CONTINGENT PART.

AND SO YOU KNOW, TO ME, THE BIGGEST QUESTION IS JUST THE OPPORTUNITY COST.

YOU'RE SPENDING THE MONEY HERE.

YOU WON'T HAVE MUCH TO SPEND ON SOME OF THE OTHER, BUT THERE MAY BE OTHER BACKFILL OPPORTUNITIES WITH PRIVATE SECTOR AND OTHER THINGS THAT COULD BACKFILL YOUR CARGO SIDE.

I WOULD YOU KNOW, WE HAVE MARIE, WE HAVE DAVID FINKLEA, WE HAVE SHEILA, SHEILA AND THEN WE HAVE MIKE BOUVIER.

BUT I WANT TO SAY, JIM, TO YOUR COMMENTS, HOW MANY YEARS AGO? WHAT A WONDERFUL DECISIONS WE HAVE TO MAKE.

LOOK AT ALL THE OPPORTUNITIES THAT ARE AT THIS PORT.

TEN YEARS AGO, YOU'VE TALKED ABOUT THIS, VIC.

THERE WASN'T WHEN WE DID THE EXTENSION EXPANSION OF CRUISE TERMINAL TWO, WHICH IS NOW 28.

THE MAXIMUM BONDING CAPACITY OF THE PORT COULD GET WAS 13.5 MILLION.

WE'VE COME A LONG WAYS, AND IT GIVES US GOOD OPPORTUNITIES TO TO DECIDE ON THE FUTURE.

BUT WE'RE IN IT BECAUSE THE CASH FLOWS THERE NOW.

YEAH. BECAUSE OF THE CRUISE.

YEAH. AND WHAT WHAT GOOD COMMENTS THAT JIM MAKES ABOUT LOOK AT THE OPPORTUNITIES THAT WE HAVE THAT WE CAN LOOK AT AND HOW WE LEVERAGE EACH TO EACH OTHER.

GREG, I YOU KNOW, AGAIN, I REALLY WE HAVEN'T TALKED ABOUT IT, BUT I SEE THIS PARKING GARAGE BEING THE FIRST PARKING GARAGE.

OH, YEAH, I SEE I'D LIKE TO TAKE THE REVENUE OFF OF ONE OF THOSE PARKING GARAGES, WHICH IS GOING TO BE SUBSTANTIAL AND DEDICATED TO THE CARGO SIDE, BECAUSE THE CARGO IS NEVER GOING TO GENERATE ENOUGH MONEY.

ROGERS MENTIONED IT FOR SIX YEARS OR WHATEVER.

YOU'VE BEEN HERE. ROGER THAT.

WE'VE GOT TO GENERATE ENOUGH CRITICAL MASS ON THE CRUISE SHIP SIDE TO HELP SUPPLEMENT THE CARGO SIDE.

MAYBE WE TAKE A PARKING GARAGE AND DEDICATE THE MONEY AND THE REVENUES OFF OF IT TO PAY BACK REVENUE, BONDS, ETC.

FOR THE CARGO SIDE WHEN OPPORTUNITIES ARE AVAILABLE.

EXACTLY. MARIE, I'LL HOLD MY COMMENTS.

DAVID FINKLEA YEAH, JIM, YOU YOU KIND OF ELABORATED MORE ON MY COMMENT THAT I MADE EARLIER BECAUSE YOU SAY THAT, OKAY, IF YOU'VE GOT $150 MILLION BONDING CAPACITY AND WE'RE GOING TO HIT IT ALL AT ONCE FOR CRUISE TERMINAL 16, AND WE'VE ALREADY HIT 50 OF IT, OKAY, WE'VE ALREADY HIT 50 OF IT.

SO BUT THE POINT THAT I THAT I WAS MAKING WHEN I LOOKED AT THE SCHEMATICS IMMEDIATELY WAS SAYING, OKAY, WHAT COULD YOU DO WITH THAT PARKING GARAGE? AND COULD YOU PARTNER WITH A LOCAL DEVELOPER TO MAYBE ADD SOME ADDITIONAL AMENITIES IN, ALLOW THEM TO PUT THE CASH IN, WHICH HELPED REDUCES YOUR FIRST TIME COSTS ON CURRENT CRUISE TERMINAL 16.

HAVING SAID THAT, I TOTALLY AGREE WITH YOU THAT YES, YOUR PARKING REVENUE AND YOUR PARKING PROGRAM GENERATES IS THE EASIEST THING TO DO OUTSIDE OF CRUISE TERMINALS.

THAT GENERATES YOUR REVENUE.

SO IT IS KIND OF A BALANCING ACT.

AND I JUST I JUST WANT TO MAKE CLEAR THAT I ONLY BROUGHT THAT UP TO AS YOU START TO LOOK AT YOUR OPTIONS AND YOU BALANCE YOUR, YOUR, YOUR AVAILABLE DEBT SERVICE FOR THAT CRUISE

[01:00:08]

OKAY. THANK YOU.

I JUST WANTED TO SAY THAT I'VE COME TO THE DISCUSSION ABOUT A FOURTH CRUISE TERMINAL IN GALVESTON WITH A BIT OF KICKING AND SCREAMING, AS MY FELLOW TRUSTEES KNOW, BECAUSE I WAS TRULY I CAME ON THE BOARD RIGHT BEFORE THE THIRD TERMINAL OPENED, AND I WAS REALLY, REALLY WORRIED ABOUT TRAFFIC AND QUALITY OF LIFE AND SAID AS MUCH TO ROGER AS THIS IS GOING TO BE A NIGHTMARE.

AND I WAS PROVEN VERY WRONG BECAUSE IT WAS.

NOT A NIGHTMARE. IT WAS VERY WELL HANDLED AND THE PEOPLE WHO LIVE IN GALVESTON BARELY HEARD A PEEP FROM WHAT WAS GOING ON DOWN ON HARBORSIDE DRIVE IN TERMS OF PEOPLE COMING INTO THE CITY.

THE ONE THING THAT I, I JUST WANT TO REMIND US OF IS IT'S GREAT THAT WE'RE IN THIS, IN THIS POSITION TO DO THIS. WE ASKED OURSELVES AS A BOARD THE OTHER DAY, CAN WE DO THIS ANSWER AS A QUALIFIED YES.

SHOULD WE DO THIS? IS THIS WHAT GALVESTON WANTS TO DO? IS THIS WHAT THE PEOPLE OF GALVESTON WANT TO DO? AND THE THE CONVERSATION WAS PRETTY MUCH YES, BECAUSE THIS IS AN OPPORTUNITY.

IT WAS ON THE MASTER PLAN FOR MANY YEARS DOWN THE ROAD INTO THE 30S.

AND THAT OPPORTUNITY HAS OPENED UP MANY YEARS AHEAD OF TIME.

WHAT WE MUST REMEMBER, AND I'M NOT TRYING TO PREACH, BUT WHAT WE MUST REMEMBER IS THAT EVERY SINGLE DECISION WE MAKE AS LEADERS OF THIS CITY, BE ELECTED OR APPOINTED, IS THE CITIZENS OF GALVESTON COME FIRST? THEY MUST COME FIRST.

AND SO THESE DECISIONS ARE GOING TO IMPACT, HOPEFULLY NOT GREATLY, BUT TO SOME DEGREE, THE CITIZENS OF GALVESTON, THE PEOPLE WHO RAISED THEIR FAMILIES HERE AND SUPPORT THE SCHOOLS AND AND SUPPORT THE RESTAURANTS WHEN THERE AREN'T TOURISTS HERE.

I HOPE THAT I'M I'M AS EXCITED AS THE REST OF YOU ABOUT, YOU KNOW, THE MONEY BEING AVAILABLE TO GALVESTON AND WORLDWIDE INTEREST IN GALVESTON AND BIG, BIG PLAYERS COMING TO THE TABLE SEEKING AN AUDIENCE WITH US, WHICH IS PHENOMENAL IN A 20 YEAR PERIOD, BECAUSE THAT WOULDN'T HAVE HAPPENED.

BUT WE WE MUST ALWAYS REMEMBER THE PEOPLE OF GALVESTON AND WHAT WHAT ARE WE DOING FOR THEM OR WHAT ARE WE DOING TO THEM? AND I CHOOSE TO ALWAYS, AND I'M SURE YOU DO TO DO FOR THEM, NOT TO THEM.

AND SO I JUST WANTED TO SAY THAT SORRY FOR PREACHING, BUT WE ALL WE'RE ALL EXCITED ABOUT THE MONEY AND THE OPPORTUNITY.

BUT WE ALSO WE WE REPRESENT OUR NEIGHBORS AND OUR FRIENDS AND OUR FAMILIES.

AND SO I JUST WANTED TO SAY THAT.

THANK YOU. THANK YOU.

MIKE. IT WAS MENTIONED ON WHEN 25 WAS BEING STARTED AND BUILT.

THERE WAS A NO GO, NO NUMBER.

LIKE HOW MUCH WAS INVESTED IN IT.

IS ARE WE THERE YET? DO WE ARE WE ALL IN? WE HAVE TO KEEP GOING.

IS THIS 7 MILLION THAT WE'RE GOING TO INVEST IN THE DESIGN OF THE BUILDING, THE GO OR NO GO NUMBER IS THIS.

NO IT'S NOT. AND I'LL TELL YOU WHAT WE'VE DONE IS WE'VE WE'VE BREAK WE'VE BROKEN DOWN THAT $7 MILLION NUMBER.

SO WE KNOW THAT THERE'S, THERE'S PROBABLY THREE DIFFERENT PHASES OF THAT THAT YOU COULD MAKE A DECISION NOT TO GO.

THE ISSUE IS OBVIOUSLY YOU'VE GOT A CUSTOMER WHO WANTS THAT DECISION NOW I MEAN I AND AND AND ME TOO. ME TOO.

AND SO I THINK ONE OF THE THINGS THAT YOU HAVE IS YOU CAN GET YOUR, THE REST OF THE DESIGN WORK DONE, YOU CAN GET YOUR CONSTRUCTION DRAWINGS DONE. AND THAT'S A $5 MILLION QUESTION, RIGHT? YOU KNOW, AND IF YOU WANT THE OTHER PIECE, WHICH IS THE CONSTRUCTION MANAGEMENT, WHICH IS THE OTHER 2 MILLION, YOU CAN CHOOSE AT THAT POINT IN TIME TO SAY, WE DON'T THINK WE WANT THIS OR WE DON'T LIKE THE DESIGN OR WHATEVER.

I WOULD TELL YOU THAT, YOU KNOW WE WOULD LOSE.

I MEAN, OUR CUSTOMER WANTS TO START SELLING TICKETS NOW.

AND SO AND ONE OF THE THINGS JUST ALONG THE SAME LINE IS, IS ONE OF THE THINGS THAT WE'VE BEEN LOOKING AT, AND SHEILA BROUGHT A PERSON TO THE TABLE.

AND SO WE ARE HAVING CONVERSATIONS WITH LANDRY'S.

WE ARE HAVING CONVERSATIONS WITH YOU KNOW, US AND WE BROUGHT IN SOME OTHER ENTITIES THAT AN ENGINEERING FIRM NOT PAID FOR US BY, NOT PAID FOR BY US, BUT BY A THIRD PARTY WHO IS INTERESTED IN SEEING WHAT YOUR WHAT SHE WAS TALKING ABOUT IS, DO WE HAVE AN

[01:05:08]

AND SO THAT CAN BE DONE.

AND LANDRY'S IS AT THE TABLE AND I WOULD TELL YOU THAT VIA EMAIL, I'VE BEEN I'VE BEEN TOLD THAT TILLMAN'S AT THE TABLE.

I MEAN, HE'S ALL FOR WHAT WE'VE BEEN TALKING ABOUT.

WE YOU KNOW, ONE OF THE THINGS IS, IS THAT PARKING CAN BE AN ISSUE IS, IS PARKING AND A JOINT EFFORT.

IN OTHER WORDS, COULD WE PUT A A PARKING LOT IN THERE THAT THAT REALLY ALSO SERVICES I MEAN YOU CAN BUILD.

THE BOTTOM. THE BOTTOM FLOOR OF PARKING OUT AS RETAIL RESTAURANTS.

THOSE KIND OF THINGS FACING THE RIGHT WAY.

AND YOU KNOW, THEY BECOME PART OF THAT BIGGER PICTURE DOWN THERE.

WE HAVE LAND IN THERE THAT THAT SERVICES THE MOSQUITO FLEET AND THE PARTY BOATS.

THAT IS PARKING LOTS.

NOW, THERE'S YOU COULD DEVELOP SOMETHING THERE IF YOU WANT TO MOVE CLOSER TO THE COMMERCIAL AREA.

THERE'S THERE'S A LOT OF THINGS THERE YOU COULD DO.

AND YOU CAN TAKE UP THE PARKING WITH IN FRONT OF FISHERMAN'S WHARF AND ALL THAT, AND YOU COULD TURN SAY, HEY, LET'S TAKE AWAY THAT.

LET'S, LET'S, LET'S TURN THAT INTO SOMETHING FOR THE COMMUNITY.

A GREEN AREA, OPEN AREAS.

LET'S IMPROVE ACCESS ACROSS THE HARBORSIDE DRIVE RIGHT THROUGH THAT SAME AREA.

SO THERE'S A LOT OF THINGS WE CAN DO.

AND MY BIGGEST, MY WHAT I NEED TO DO IF I'M DO MY JOB THAT I WAS HIRED TO DO, IS I NEED TO GET THE NEXT CRUISE TERMINAL ON THE BOOKS WORKING FORWARD. I REALLY NEED TO DO THAT.

PARKING. WE CAN SERVICE THE PARKING.

I MEAN, IF WE WANT TO WAIT.

YOU KNOW, THE PROBLEM IS GOING TO BE WE GOT, YOU KNOW.

WELL, I'D SAY A GOOD THING IS, IS THAT THE MSC OPERATION, THE WAY WE'VE BEEN TALKING ABOUT IT WILL IS NOT A FULL TERMINAL, RIGHT? I MEAN, IT'S WE HAVE OTHER PLAYERS THAT WE CAN CHOOSE TO BRING IN OR NOT.

THAT WOULD BRING IN MORE TRAFFIC DOWN THAT AREA.

WE THINK WE HAVE THE SAME PLAN THAT WE THAT THAT WORKED AT CRUISE TERMINAL TEN TO KEEP THE TRAFFIC OFF OF HARBORSIDE DRIVE.

HOW WE QUEUE THAT IS REALLY IMPORTANT.

AND WE HAVE THAT IN OUR, IN OUR CURRENT DESIGN ON, ON CT 2016.

AND SO, YOU KNOW, THERE THAT COULD BE DONE LATER.

YES, THAT COULD BE DONE LATER.

YOU KNOW, THE PROBLEM WILL BE IF IT LATER I DON'T WANT LATER TO BE IN TWO YEARS BECAUSE, YOU KNOW, WE'RE GOING TO HAVE PEOPLE FLOWING THROUGH THERE.

RIGHT. AND FOR US TO BUILD CONSTRUCTION AND, AND HAVE A TERMINAL, I MEAN, HAVE A PARKING LOT UNDER CONSTRUCTION WHEN YOU'RE HAVING PEOPLE COME IN THE CRUISE TERMINALS, THEN YOU WILL GET TRAFFIC OUT ON HARBORSIDE DRIVE BECAUSE YOU WON'T BE ABLE TO MOVE IT THROUGH EFFICIENTLY.

SO THERE'S A LOT OF THINGS, AND I HAVE ALWAYS BEEN OPEN, AND SHEILA AND I HAVE DISCUSSED THIS A LOT.

ABOUT WHAT? HOW COULD THIS PARKING DECK BE SOMETHING ELSE? HOW COULD THIS PARKING DECK SERVICE, THE USS TEXAS? HOW CAN THIS PARKING DECK SERVICE THE CRUISE BUSINESS? HOW CAN IT SERVICE LANDRY'S AND THAT WHOLE AREA THERE BECOMES A CENTRAL, YOU KNOW, YOU'VE SEEN IT.

YOU'VE SEEN THESE KIND OF AREAS IN CITIES WHERE THEY'VE REDEVELOPED A BLOCK, OR THEY'VE REDEVELOPED A MALL AREA AND TURNED IT INTO SOMETHING REALLY NICE, A LOT OF FOLIAGE, A LOT OF, YOU KNOW, GREENERY AND THINGS LIKE THAT.

AND MY, MY VISION IS NOT TO PAVE EVERYTHING, RIGHT.

I MEAN, THAT'S NOT MY VISION.

I'VE, I'VE SAID MANY TIMES, YOU KNOW, I WANT A PRETTY PORT, YOU KNOW, WHICH IS KIND OF AN OXYMORON IN ITSELF BECAUSE PORTS TYPICALLY ARE NOT PRETTY AND, AND BUT, YOU KNOW, WE HAVE AN OPPORTUNITY TO MAKE IT THAT WAY.

AND THEN AND I'M ALL FOR THAT.

I MEAN, WHAT PLUS YOU'RE WORKING WITH THEM.

I HOPE I'M NOT DIVULGING ANYTHING WITH THE MITCHELLS.

RIGHT. OR POSSIBLE GREENERY AND MAKING THAT PORT AS ATTRACTIVE AS POSSIBLE.

AND THAT WHOLE AREA RIGHT THERE IS SUBJECT TO THAT.

YEAH, THAT AREA RIGHT THERE IS THE SUBJECT OF THAT.

THEY THE ARCHITECTS AND HAVE SEEN THAT WE HAVE JEFF AND I NOTICED WILLIE AND THEN WE HAD DAVID COLLINS.

BUT JEFF, I WAS GOING TO GIVE A BETTER ENGINEERING ANSWER TO MY ENGINEERING HARD HAT ON FOR MIKE'S QUESTION.

BUT YEAH. AND DAVID KNOWS, YOU KNOW, THERE'S AN ESTIMATING TUNNEL, RIGHT AS YOU GO DOWN THE STAGES OF THE PROJECT.

AND I GUESS WHERE WE ARE IN THAT TUNNEL, I MEAN, THE NUMBERS BASED ON THE MSC CONTRACT, BASED ON, YOU KNOW, THE THE MILLION DOLLARS WE SPENT WITH BA ON OR THE SO TO GENERATE THE CONCEPT DRAWINGS.

AND PART OF THAT WAS TO GENERATE ESTIMATES AND DO SOME EARLY ENGINEERING WORK.

I MEAN, THE NUMBERS WE'VE SEEN, THE CASH FLOW, WE'RE COMFORTABLE THAT THAT'S A GOOD INVESTMENT.

YOU KNOW, THE RATE OF RETURN ON THAT IS A GOOD NUMBER.

AND AS A BOARD, WE FELT THAT THIS IS A GOOD OPPORTUNITY FOR US TO TO MOVE FORWARD.

NOW WE, YOU KNOW, SPENDING THE WHAT YOU MENTIONED THE THE OTHER 7 MILLION TO GET SOME MORE DETAIL AND WE'LL GET BETTER NUMBERS.

[01:10:01]

YOU KNOW YOU CALL THEM DAVID.

YOU KNOW PLUS 35 MINUS SOME ENGINEERING PLUS 35 -25.

YOU KNOW TYPE NUMBERS THAT YOU CAN USE FOR AN ESTIMATE FOR, YOU KNOW, THE GO NO GO DECISION THAT SAYS WE'RE COMFORTABLE MOVING FORWARD TO FINALIZE THE CONTRACT WITH MSC.

LIKE JOHN JOHN SAID, I MEAN WE'VE GOT TO GET SOME THINGS IN PLACE, RIGHT? WE GOT TO FINALIZE THE CONTRACT WITH MSC.

WE'VE GOT TO, YOU KNOW, WE'VE GOT THE ENGINEERING NUMBERS TO GET BETTER.

WE'VE GOT THE FUNDING, THE DEBT FUNDING ISSUE WITH, YOU KNOW, WE'VE GOT TO WORK WITH YOU GUYS AND THE BOND FOLKS.

SO BUT YOU KNOW, YOU'VE GOT TO MAKE DECISIONS.

AND I THINK WE'RE COMFORTABLE WITH THE QUALITY OF THE NUMBERS WE HAVE AT THIS POINT THAT THOSE GENERATE A REALLY GOOD RATE OF RETURN, WHICH AS WE TALKED ABOUT IT, GENERATES THE CASH. I MEAN, THE MATCH THAT WE'RE USING ON THE WEST END, WHICH I THINK THAT THAT GRANT I MEAN, WE CAN'T UNDERESTIMATE BECAUSE, YOU KNOW, JIM BROUGHT UP THE POINT ABOUT, YOU KNOW, THE WEST END, BUT THAT GRANT FOR THE $42 MILLION, THAT WAS, I WOULD SAY, A GAME CHANGER, BUT THAT REALLY PUT IN THAT OTHER PIECE OF THE PUZZLE ABOUT HOW DO WE GENERATE THAT MONEY. WE TALKED ABOUT THE DEBT.

HOW MUCH OF THE $150 MILLION DEBT.

BUT THAT WAS AN EXTRA, YOU KNOW, $40 MILLION THAT WE GOT TO ENABLE US TO BUILD THAT BULKHEAD, WHICH REALLY THEN SETS THE STAGE FOR FINALIZING THE SLIP FIELDS AND THINGS.

SO THAT THAT REALLY CHANGED.

WE WERE OBVIOUSLY STRUGGLING, BUT WE WERE LOOKING WHERE DOES THAT YOU KNOW, WE WERE KIND OF $50 MILLION SHORT TO GET THAT THAT BULKHEAD BUILT.

BUT WE GOT THAT MONEY THROUGH ROGER'S GREAT EFFORT AND THE WORK OF FOLKS WORKING WITH THE STATE AND OTHERS THAT SUPPORTED US.

SO REALLY, WITH THAT, NOW WE'RE TO THE POINT OF BEING ABLE TO MAKE THAT DECISION ON TERMINAL 16.

AND AGAIN, HAVING THE DIALOG WITH YOU GUYS ABOUT, YOU KNOW, THE PARKING DECKS AND WHAT WE CAN DO THERE.

BUT I THINK TO ME, TERMINAL 16, WE'RE COMFORTABLE THAT THOSE NUMBERS ARE GOOD SOLID NUMBERS.

AND THEY GENERATE A LOT OF GOOD REVENUE AND CASH FLOW FOR US.

THAT WILL FURTHER ENABLE US TO TO MOVE FORWARD WITH THE PLANS WE'VE TALKED ABOUT.

I JUST WANT TO SAY ONE THING THAT ALSO, JUST FROM A FINANCIAL STANDPOINT, YOU KNOW, IF YOU REMEMBER WHEN WE DID THE BOND OFFERING, WE SPENT ABOUT $29 MILLION OF OUR OWN MONEY THAT WE HAVE ALL THAT BACK NOW.

WE GOT ALL THAT BACK FROM THE FINANCING.

SO WE'RE WE'RE FLUSH.

AND I USE THIS ANALOGY THE OTHER DAY.

STAFF MEETING. YEAH.

CAREFUL, CAREFUL.

YOU DON'T WANT A PIECE OF IT.

I'M ASSUMING THAT THE WHOLE IDEA WE'RE HERE IS TO MOVE TOGETHER FORWARD ON THIS PORT.

RIGHT. AND SO WHAT? MY MY THOUGHT, WHAT I WAS GETTING READY TO SAY IS WE GOT THAT MONEY BACK, AND THEN YOU GOT TO REALIZE WHAT WE DID OVER 2023 AND 2022 IS THAT WE GENERATED IN EXCESS OF $20 MILLION IN CASH FLOW.

SO THAT MONEY IS STILL THERE TOO.

SO FOR US TO BE ABLE TO MOVE FORWARD, YOU KNOW, MY PLAN ISN'T AND THE BOARD HASN'T SEEN THIS YET BECAUSE WE'RE TRYING TO FIGURE OUT WHAT THE FINAL NUMBERS ARE THESE.

BUT MY PLAN IS TO USE SOME OF THAT CASH.

I MEAN, FOR INVESTMENT, YOU KNOW, NOT NECESSARILY BECAUSE THIS YOU KNOW WHAT? WE'RE I'VE ALWAYS SAID SEVERAL THINGS.

I'VE ALWAYS SAID THAT, YOU KNOW, WE'RE IN THE BUSINESS OF INCURRING DEBT.

I MEAN, LOOK AT THE PORTS AROUND THE WORLD.

THEY ALL INCUR DEBT BECAUSE YOU CAN'T WRITE CHECKS FOR THE COST OF INFRASTRUCTURE IN THE PORT BUSINESS.

SO YOU HAVE TO GENERATE YOU HAVE TO BE ABLE TO LEVERAGE.

SO WE'VE WE'VE WE'VE PROVEN THAT $500 MILLION WORTH OF ORDERS ON $50 MILLION WORTH OF DEBT.

SO IT'S OUT THERE.

AND I MEAN, SO I GUESS MY POINT IS, IS NOW WE CAN START TO THINK ABOUT IN THE EARLIER THIS IS THE OTHER THE OTHER THING WITH MY REAL POINT IS THE EARLIER THAT WE GO IN AND GET THE DEBT FOR THIS NEW TERMINAL, THEN THE THE MORE OF THAT CAPITAL REMAINS AVAILABLE FOR INVESTMENT.

AND SO THE, THE QUESTION THAT I POSED TO TO THE, TO OUR TRUSTEES THE OTHER DAY IS WHAT'S THE COMFORT LEVEL OF RESERVES, WHAT'S THE COMFORT LEVEL OF OUR RESERVES.

AND THEN, YOU KNOW, AND WHEN WE ESTABLISH WHAT THAT IS, THEN THAT THAT CASH BECOMES INVESTABLE.

AND SO I THINK THAT ONE OF THE THINGS WHEN YOU TALK ABOUT $100 MILLION INVESTMENT, YOU KNOW, YOU CAN LOWER THAT $100 MILLION INVESTMENT BY YOUR OWN CASH, AND IT'S A TWO YEAR DEAL. SO WE'RE BUDGETING.

WE'RE BUDGETED TO CASH FLOW 24 MILLION NEXT YEAR.

SO THAT MONEY ALL BECOMES AVAILABLE OVER A TWO YEAR PERIOD CAN BE SPENT AND USED FOR INVESTMENT, WHICH IS WHAT WE'RE DOING ON THE WEST END, RIGHT? I NOTICED YOU HAD A QUICK.

I'LL BE BRIEF. I'M SORRY.

I'VE BEEN IN THE MUSIC BUSINESS FOR 30 YEARS, AND AT THE RIPE AGE OF 18, I FOUND OUT PRETTY QUICK ON WHICH AGENTS OR PARTNERS I WANTED TO GET INTO BUSINESS WITH AND WHICH ONES I DIDN'T. SO I TOOK 10%.

SOME TOOK 50%.

AND YOU GOT TO REMEMBER, THE PORT IS NOT A TAXING ENTITY.

THE MONEY THAT WE EARN, WE HAVE TO REINVEST, WE KEEP FOR RAINY DAYS.

[01:15:02]

IF DO, DO WE TAKE ON A PARTNER THAT CAN HELP US OR IN THE LONG TERM, IS IT ACTUAL HELP? EXACTLY. WE HAD DAVID COLLINS, THEN WE HAD SHARON AND THEN RICHARD MORE.

WE SEEM TO BE SAYING THE SAME THING OVER AND OVER HERE.

CLEARLY THE DECISION TO MOVE FORWARD ON THIS HAS BEEN HAS BEEN MADE.

THE THERE ARE THINGS THAT CAN DERAIL IT.

BUT BUT YOU'RE NOT YOU'RE NOT TRYING TO DECIDE WHETHER TO BUILD A TERMINAL.

YOU'RE TRYING TO TRYING TO STAY ON A ROAD THAT KEEPS SOMETHING FROM DERAILING IT.

TO SHEILA'S POINT THE THE INCREASE IN REVENUE INTO HOTELS AND RESTAURANTS FROM CRUISE FROM THE CRUISE BUSINESS IS NON-TRIVIAL.

KPBS GOT SOME GOOD NUMBERS ON THAT.

AND OUR PARTNERING ON THE PARKING FEES, AS HAS BEEN A GREAT BENEFIT TO THE BOTTOM LINE IN GALVESTON.

AND SO AS WE AS WE BUILD THAT OUT, YOU KNOW, THAT IS A DIRECT BENEFIT TO THE CITIZENS OF GALVESTON.

WE HAVE ALWAYS SAID WE OUGHT TO BE GETTING ANOTHER DOLLAR OUT OF THE POCKET OF THE VISITOR TO KEEP FROM TAKING IT OUT OF THE POCKET OF THE CITIZENS.

AND I THINK THAT'S WHAT ONE OF THE GREAT THINGS THAT'S COMING COMING OUT OF THAT.

AS FOR TRAFFIC I ARGUED EVENTUALLY FOR THE I BECAME A FAN OF THE NOTION OF BUILDING CRUISE CT10 BECAUSE IT WAS GOING TO TAKE 550 HIGH AND HEAVY LOADS A WEEK OFF OF HARBOR SIDE, WHICH IT HAS PRETTY MUCH DONE, AND THAT THAT'S NOTABLE.

AND, YOU KNOW, WHEN PEOPLE SAY TO ME, WHAT DO YOU MEAN BY HIGH AND HEAVY LOADS ON THE HARBOR SIDE? I SAID, IF YOU DON'T KNOW WHAT I'M TALKING ABOUT, YOU DON'T DRIVE HARBOR SIDE.

SO CLEARLY YOU'RE NOT, YOU'RE NOT, YOU'RE NOT SHOULDN'T BE TOO WORRIED ABOUT IT.

BUT THERE IS A POINT AT WHICH YOU CAN SATURATE.

HARBORSIDE YOU KNOW, AND IF YOU GET INTO THE CRUISE, I THINK WE'VE SEEN A LITTLE BIT OF THIS.

PIER TEN. BECAUSE WE HAVEN'T FINISHED THE INTERNAL ROAD.

SO I'M A LITTLE I STILL HAVE QUESTIONS ABOUT THAT.

I MEAN, AT WHAT POINT ARE WE THE WHERE ARE WE ON THE INTERNAL ROAD? HOW LONG IS IT GOING TO TAKE BEFORE WE WE HAVE PIER.

RIGHT OF WAY CLEAR RIGHT OF WAY THROUGH THERE.

WHAT IMPACT DOES THAT HAVE ON PARKING? BECAUSE, YOU KNOW, WE KEEP HEARING ABOUT THIS INTERNAL ROAD WHEN WHEN IT WAS ORIGINALLY PUT UP, I JUST WANTED TO DRAW ONE OF THOSE CLOUDS FROM 21 TO 25 AND SAY, HERE A MIRACLE OCCURS BECAUSE I NEVER HAVE UNDERSTOOD.

HOW ARE YOU GOING TO GET A VIABLE ROAD ACROSS THAT, ESPECIALLY ONE THAT'S GOING TO CARRY CARGO OR NOT CARGO, BUT PASSENGERS IN AND OUT FOR TWO, TWO ACTIVE CRUISE TERMINALS, YOU KNOW, THAT ARE THAT ARE SEEING SIX SHIPS A WEEK OR WHATEVER, WHATEVER YOU'RE GOING TO BE SEEING DOWN THERE.

SO THAT THAT WOULD BE ONE OF MY I ASK ROGER.

HE WAS SIDE BORING, BUT I'M SORRY.

CAN YOU GIVE A CAN YOU GIVE AN UPDATE ON THE INTERNAL ROAD? INTERNAL ROAD NETWORK? THAT IS ONE QUESTION. IS THE UPDATE ON THE INTERNAL ROAD? BECAUSE I'M NOT I'M NOT BECAUSE WE WILL CROWD HARBOR SIDE.

IT GETS VERY NARROW AT THAT POINT.

AS YOU AS YOU CROSS 21ST STREET, 20TH STREET GOING TO PIER TEN YOU KNOW, IF YOU START ADDING 16 INTO THAT BEFORE THIS INTERNAL ROAD IS COMPLETED, THEN I YOU ALLUDED TO THIS A LITTLE BIT A MOMENT AGO.

THE OTHER THING IS WE CAN LEVERAGE CRUISE OR PARKING AS, AS JUDGE YARBOROUGH SAID, TO, TO HELP BUILD OUT THE WEST END CARGO. BUT AT WHAT RATE? I UNDERSTAND CRUISE IS GOING TO PUT A LOT MORE MONEY IN THE IN THE HOPPER THAN THAN CARGO IS GOING TO PROBABLY EVER.

BUT YOU DON'T WANT TO LET THAT JUST SIT THERE AND DETERIORATE AT SOME POINT.

YOU HAVE TO TAKE SOME SOME ACTION OUT THERE.

YOUR STATE GRANT, WELL DONE GETTING THAT MONEY.

AND OUR 15 MILLION MATCH IS COMING FROM THE CASH FLOW.

WELL, THAT'S THAT'S THE TICKET ISN'T IT? IF YOU'RE GOING TO ANOTHER $200 MILLION WORTH OF WORK OUT THERE, I KNOW YOU GOT A BIG HOLE TO FILL OUT THERE.

YOU KNOW, LITERALLY YOU LITERALLY DO.

YOU DO YOU DO YOU HAVE THE CASH FLOW TO DO THAT? AT THE SAME TIME, WHAT'S YOUR BUILD OUT ON THAT AND WILL CRUISE OR PARDON ME, CARGO EVER ON THIS SIDE OF THE BOARD ANYWAY GENERATE ENOUGH MONEY TO SUPPORT ITSELF GOING FORWARD. YOU WILL GET THE RETURN ON INVESTMENT.

BUT I'LL TELL YOU WHAT.

WHAT IT REALLY NEEDS IS CONTAINER BUSINESS.

THE CONTAINER BUSINESS IS THE MOST LUCRATIVE OF THE CARGO BUSINESS, AND THAT'S WHAT EVERYBODY IS MOVING TOWARDS, IS EVERYBODY I MEAN, NOT JUST NOW THEY'VE BEEN THERE, BUT YOU JUST SAID YOU CAN'T DO THAT ON THE SOUTH SIDE.

WELL, YOU CAN'T, BUT, YOU KNOW, YOU COULD IF YOU HAD ALL THAT DEDICATED TO CONTAINER BUSINESS.

AND RIGHT NOW WE BRING IN A LOT OF WIND ENERGY AND WE AND I'LL BE HONEST WITH YOU, WE BRING IN WHAT WE CAN.

SURE, SURE, WE BRING IN WHAT WE CAN.

AND AND THE OTHER PIECE IS THE LAY BUSINESS IS, IS THAT, YOU KNOW, WHEN AND I AND I'VE HEARD THE I THINK JOHN SAID SOMETHING ABOUT, WELL, YOU KNOW, THESE BUILDINGS SIT IDLE AND TO A CERTAIN EXTENT THAT'S TRUE.

BUT THE DOCKS DON'T.

WE UTILIZE THOSE DOCKS AT ALL THE CRUISE SHIPS FOR WHERE THE CRUISE SHIPS AREN'T HERE, WE EARN $6 MILLION, YOU KNOW, LAST YEAR, ALMOST $6 MILLION, DEFINITELY $6 MILLION DURING THE

[01:20:10]

WELL, BUT YOUR ANSWER IS YES.

IT'S IT'S CAN YOU GIVE AN UPDATE ON THE ROAD NETWORK? YES. YEAH. I MEAN, I THINK TO THE MAP.

YEAH. THE ROAD NETWORK, PROBABLY FOR EVERYONE THAT DOESN'T KNOW, IS GOING TO GO ALL THE WAY DOWN TO THE END OF OUR PROPERTY RIGHT HERE.

AND WE JUST RECEIVED FUNDING FOR THE LAST PIECE OF THAT FROM TEXTILE.

TEXTILES FUNDED ALL THREE OF THE EXISTING PHASES.

WHAT, WHAT OUR PLAN WITH THIS, THIS TERMINAL IS, IS WHAT WE BUILT IS A BRAND NEW INTERSECTION HERE INTO THE TERMINAL.

SO WHAT WILL HAPPEN IS, IS ALL THE CRUISE PASSENGERS WILL COME IN, EITHER TAKE A LEFT TO THIS TERMINAL OR RIGHT TO THIS TERMINAL.

NOW REMEMBER, WHAT HAPPENS IS, IS WHAT'S HAPPENING HERE.

AND IT'S NOT MAGIC.

THE REASON WHY WE AREN'T PUTTING TRAFFIC ON HARBORSIDE DRIVE IS BECAUSE OF THIS DISTANCE.

WE HAVE A QUARTER OF A MILE THAT WE'RE IN.

AND ACTUALLY, ONE OF THE THINGS THAT'S CHANGED ABOUT THE TRAFFIC AT CT10 WAS WE ORIGINALLY WERE GOING TO HAVE A LOOP, AND, YOU KNOW, YOU'RE GOING TO COME BACK AND LOOP AROUND. AND THAT REALLY NEVER WORKED VERY WELL.

AND THEN WE QUESTIONED THAT DESIGN DURING CONSTRUCTION AND THEY SAID, NO, WE'RE GOING TO DO.

WE'VE ALREADY DONE. WE'RE TOO LATE. RIGHT.

SO WHAT'S HAPPENED IS WE'RE TAKING PEOPLE IN THE TERMINAL BOTH WAYS.

SO THAT'S WHAT'S HAPPENING.

PEOPLE ARE COMING INTO THE TERMINAL THIS WAY HERE INTO THE TERMINAL BOTH WAYS.

SO ALL THE TRAFFIC IS HAPPENING HERE.

BUT I WOULD ALSO TELL YOU THAT BECAUSE OF THE PROXIMITY OF THE PARKING TO THE TERMINAL ITSELF, PEOPLE, A LOT OF PEOPLE ARE WILLING TO PARK HERE AND WALK TO THE TERMINAL SO YOU DON'T GET DAD LETTING OFF THE FAMILY, YOU KNOW, AND THEN TAKING THE CAR TO THE PARKING LOT AND THE SHUTTLE BRINGS HIM BACK.

YOU'RE NOT GETTING THAT.

AND SO WHAT'S HAPPENING HERE IS, YOU KNOW, AND THE OTHER THING IS, IS THE LICENSE PLATE READERS, WE HAVE OUR CAR, ALL THIS, ALL THESE LOTS.

NOW WE JUST FUNDED MORE MONEY YESTERDAY OR TUESDAY TO UPGRADE THE REST OF OUR LOSS, BECAUSE IT'S A TWO SECOND PROCESS TO GET IN THE PARKING LOT.

AM I ANSWERING THE QUESTION? NO, NO YOU'RE NOT.

OR AT LEAST YOU SAID SOMETHING THAT MAKES ME CURIOUS.

HERE WE'RE TALKING ABOUT BRINGING THEM IN ON 14.

I MEAN, THAT'S A NICE INTERSECTION THAT YOU'VE DONE THERE, YOU KNOW, AND I DON'T SEE THE QUEUING THERE THAT, THAT WE ALL FEARED WOULD HAPPEN.

BUT ARE YOU TELLING ME THAT THAT THE INTERNAL ROAD WILL NOT GO FROM 25 TO 14.

IT'S ALREADY DONE. I MEAN, THE INTERNAL ROAD NETWORK IS ALREADY DONE FROM TEN.

IT'S DONE ALL THE WAY TO RIGHT HERE.

IT'S COMPLETED ONCE WE EVEN BUILD IT THROUGH DEL MONTE.

WHEN DEL MONTE WAS IN BUSINESS.

YEAH, WE BUILT IT RIGHT THROUGH THE MIDDLE OF THEM.

OKAY. SO. SO IT'S DONE.

AT WHAT POINT ARE YOU GOING TO BE TAKING CRUISE TRAFFIC OFF OF HARBORSIDE FOR PIER 14 FOR CT 16? PROBABLY NOT FOR EITHER ONE OF THESE TERMINALS, BECAUSE THERE'S NO NEED TO BECAUSE THE TRAFFIC IS IN THE SAME THING.

WHAT I WAS JUST TALKING ABOUT HERE IS NOW YOU HAVE THIS QUEUING AREA HERE, SO IT TAKES THE TRAFFIC OFF THE HARBORSIDE DRIVE BECAUSE THE PEOPLE COMING OFF HARBORSIDE DRIVE GOING TO THE TERMINAL.

AND WHAT'S HAPPENING BECAUSE OF ON SITE PARKING, I THINK, I THINK THE, THE POINT HERE IS ALL THOSE CARS ARE STILL ON HARBORSIDE DRIVE, SO YOU'RE NOT TAKING THE TRAFFIC OFF OF HARBORSIDE DRIVE. YOU DRIVE ON HARBORSIDE DRIVE TO GET TO 14TH STREET.

YES. SO THE TRAFFIC DOES NOT COME OFF OF HARBORSIDE DRIVE? YEAH, YEAH, IT COMES OFF HARBORSIDE DRIVE BUT DOESN'T STAY THERE.

THAT'S MY POINT. WHAT'S THE POINT OF THE INTERNAL ROAD? YEAH, BECAUSE OKAY, THE INTERNAL ROAD NOW WHICH WAS BUILT WAS TO TAKE YOU ALL THIS IS FINISHED NOW.

SO NOW ALL THE TRAFFIC CAN GO IN HERE.

COMMERCIAL TRAFFIC. IS THERE STILL COMMERCIAL TRAFFIC FOR THESE TWO TERMINALS BECAUSE OF THE SUPPLIES NEEDED ON THE SHIPS? THEY HAVE A SEPARATE ENTRANCE OVER HERE.

SO YOU KNOW WHERE IT'S GOING TO REALLY HELP US DOWN IS DOWN HERE AND THESE TWO TERMS. SO THERE'S NOT GOING TO BE AN INTERNAL ROAD BEHIND LIPTON.

SO IT'S ALREADY THERE.

IT'S THERE. YOU'RE NOT TAKING YOU'RE NOT TAKING CRUISE TRAFFIC.

IT'S NOT HERE.

SO SO THE ROAD IS NOT COMPLETE.

AND IT SOUNDS LIKE IT NEVER WILL BE COMPLETE.

NO IT WILL. NO NO NO THAT'S UNDER CONTRACT RIGHT NOW.

BUT YOU'RE NOT GOING TO USE IT.

NO WE WE ARE, WE ARE.

YEAH. THAT'S NOT I'M HEARING TWO DIFFERENT THINGS HERE.

I'M HERE TWO DIFFERENT THINGS. RIGHT.

WELL I'M USING IT RIGHT HERE NOW.

WELL IT BUT I'M NOT TALKING ABOUT THAT.

I'M TALKING ABOUT I'M TALKING ABOUT WHETHER CT 16 AND CT TEN TRAFFIC EVER GETS OFF HARBORSIDE DOWN HERE AND ONTO AN INTERNAL ROAD RIGHT HERE. YEAH. YEAH.

BUT THAT'S, THAT'S.

BUT YOU STILL YOU'RE ON HARBOR SIDE.

YOU COME TO 14TH STREET.

YOU HAVE TO GET THERE. YOU HAVE TO USE HARBORSIDE TO GET WHAT'S THE POINT? INTERNAL ROAD. INTERNAL ROAD.

WHAT'S THE POINT? NO, NO ROAD BACK TO WHY? WHY BUILD THE INTERNAL ROAD HERE IF YOU'RE NOT GOING TO CONNECT DOWN HERE WITH 16 OR 20 OR TEN? IT IS, IT IS I LET LET LET ME DAVID.

[01:25:04]

BECAUSE, YOU KNOW, THERE'S AN AWFUL LOT OF OTHER TRAFFIC HERE.

WHY BUILD IT THERE? WELL, I BUILD IT THERE THEN, BECAUSE THERE'S, IT'S IT'S LIKE THIS.

YEAH. WE WE UNDERSTOOD THAT.

SO BUT THIS, THIS I'M TELLING YOU, YOU'RE PICKING.

THE LAST TIME I WAS IN TERMINAL, THE MASTER, THE ORIGINAL MASTER PLAN MUST BEEN 2019.

SHOWED THAT ROAD GOING INTERNAL ALL THE WAY, AS THOUGH YOU WERE GOING TO GET THEM OFF AT 51ST STREET AND TAKE THEM, GET ALL THE ALL THE CRUISE TRAFFIC OFF HARBOR TEN.

ARE THEY STILL THERE? IT'S STILL THERE FOR THAT.

AND WHEN YOU'RE TALKING ABOUT CRUISE TERMINAL 25 AND 28, THAT INTERNAL ROAD COULD.

IT COME OFF AT 30. INTERNAL LOAD IS MORE BENEFICIAL FOR THOSE AREAS THAN IT IS RIGHT HERE, WITH EXCEPTION.

NOW YOU HAVE MORE FEEDING, MORE LANES TO FEED INTO THIS TERMINAL.

AND SO THEY'RE I MEAN, THEY'RE NOT SITTING OUT HERE AND THEY'RE NOT YOU HEARD IT.

THEY'RE NOT SITTING OUT HERE ON HARBORSIDE DRIVE WAITING TO GET INTO THIS TERMINAL.

ROGER. NOT TO SAY THERE IS NOT TRAFFIC CONGESTION ON HARBOR SIDE.

ROGER. WHAT'S THE AVERAGE TIME? WHAT'S THE AVERAGE TIME WHEN SOMEBODY HITS THE CAUSEWAY UNTIL THEY GET TO THE TERMINAL? CT10. IT WAS.

IT WAS 9 MINUTES OR 9 MINUTES.

NINE MINUTES. I'M NOT WORRIED ABOUT THE INCONVENIENCE TO CRUISERS, OKAY? I'M WORRIED ABOUT THE INCONVENIENCE, BUT I'M JUST SAYING IT TAKES YOU, ON AVERAGE, NINE MINUTES FROM WHEN YOU HIT THE CAUSEWAY TO GET TO CRUISE TERMINAL TEN.

THAT'S AMAZING. THAT'S AMAZING.

AND THAT'S FINE. I JUST I JUST WISH THAT THE MESSAGE WAS MORE CLEAR BECAUSE I JUST HEARD TWO DIFFERENT THINGS.

I HEARD WE WERE GOING TO USE AN INTERNAL ROAD TO GO FROM SOMEWHERE DOWN HERE ALL THE WAY TO TEN.

AND THEN I ALSO HEARD THAT WE'RE NOT DOING THAT.

WE'RE BRINGING EVERYBODY TO 14TH STREET TO GO TO TEN AND 16, WHICH I THINK IS WHAT YOU'RE GOING TO DO.

SO JUST JUST SAY THAT.

JUST SAY, HEY, ALL THE CRUISE TRAFFIC IS IF YOU'RE GOING TO GO TO 10 OR 16, YOU'RE GOING TO GO ON HARBOR SIDE TO 14TH AND THEN GET ON THE INTERNAL ROAD SYSTEM.

INTERNAL ROAD REALLY TO 14.

THEY CAN GO DOWN BROADWAY. WHY, WHY YOU KNOW, I CAN SOMEBODY COME IN HERE AND COME ACROSS.

YEAH, SURE THEY CAN. YOU KNOW WHY, WILLY? BECAUSE THERE'S NOT A CONTROLLED INTERSECTION AT 14TH STREET AT 14TH AND THE 14TH AND 19TH.

RIGHT. AT THE MOMENT, YOU HAVE SOME PLANS WITH TEX DOT TO MAKE A LEFT TURN LANE HERE.

THAT'S ONE OF THE MOST DANGEROUS INTERSECTIONS IN THE CITY.

AND WE'RE WE'RE MULTIPLYING TRAFFIC.

I DON'T SEE THE PROBLEM AT HARBOR SIDE AT 14TH, BUT I SEE IT AT I SEE IT AT 14TH AND BROADWAY.

AND SO INCREASING TRAFFIC AT 14TH AND BROADWAY IS NOT AN ANSWER.

LET'S LET'S BRING THIS TOPIC TO ON THE TRAFFIC.

I THINK THE BOTTOM LINE IS I HEAR COUNCILMAN COLLINS SAYING, HEY, LOOK, I UNDERSTAND THAT CRUISE TERMINAL TEN TRAFFIC IS BEING CONTROLLED.

WELL, I UNDERSTAND THAT THE INTERNAL ROAD MAY BE ABLE TO FEED TRAFFIC TO CRUISE TERMINAL 25 AND 28.

HE'S CONCERNED ABOUT CRUISE TERMINAL 16 AND HOW THIS TRAFFIC IS GOING TO BE MANAGED.

WE NEED TO MAKE SURE THAT WE LOOK AT THAT BECAUSE THAT'S THAT'S HOW IT WAS SOLD IN THE 2019 MASTER PLAN ON THE MANAGEMENT ROAD WAS WAS WAS GOING TO CARRY TRAFFIC ALL THE WAY FROM THE WEST END.

WHAT MORE USE YOU'RE SAYING IT WAS SOLD SOLD.

IT WAS SOLD IN 2019.

AND THE MASTER PLAN, I WAS AT THOSE PRESENTATIONS THAT IT WAS GOING TO CARRY INTERNAL TRAFFIC OFF HARBORSIDE ON THIS INTERNAL ROAD TO ALL THE CRUISE TERMINALS.

ALL RIGHT. I THINK TWO THINGS CAN HAPPEN.

ONE IS WHERE YOU PUT THE PARKING GARAGE WILL DICTATE WHERE THE CARS GO.

I MEAN, IF YOU PUT A PARKING GARAGE, THAT'S GOING TO BE I DON'T KNOW WHERE IT IS AND WHAT HAVE YOU, BUT LOCATION OF THE PARKING GARAGE WILL DICTATE GETTING WHERE YOU GET TO GET OFF HARBORSIDE. YOU PUT IT FURTHER WEST TO GO AND GET OFF BEFORE TO GET TO 14TH STREET.

THE OTHER THING IS, IF WE BEGIN TO EXPERIENCE PROBLEMS OR ISSUES WITH A TERMINAL 16, YOU KNOW, IT'S LIKE AIRPORT, YOU JUST INCREASE THE SIGNAGE AND THE WAY WE'RE SIGNS AND STUFF TO DIRECT TRAFFIC AND MOVE THEM WHERE YOU WANT THEM.

BUT THE INTERNAL ROAD CONSTRUCTION WAS BUILT TO HANDLE ANY TYPE, NOT THE BIG HEAVY TRUCKS, BUT ANY PASSENGER VEHICLES, AND WHETHER THEY BE GOING TO A RESTAURANT OR WHETHER THEY BE GOING TO A CRUISE TERMINAL.

AND IT GIVES US THE FLEXIBILITY IN MY MIND TO MAKE PLANS ON HOW WE MANAGE THIS TRAFFIC IN THE FUTURE.

IT'S POSSIBLE THAT WE WOULD HAVE A PARKING GARAGE AT 2528 AND SHUTTLE PASSENGERS ON THE INTERNAL ROAD DOWN TO 16.

WELL, I'LL REPEAT WHAT JOHN SAID IF THIS IS WHAT YOU'RE GOING TO DO, SAY SO OUT LOUD, BECAUSE THAT HAS NOT BEEN THE PLAN THAT'S BEEN PRESENTED, PRESENTED TO THE PUBLIC.

THAT IS NOT WHAT'S BEEN PRESENTED.

OKAY. GOOD POINT.

AND I THINK YOU HAVE THAT DOWN, ROGER.

SO WE'LL, WE'LL WE'LL LOOK AT THAT.

WE HAVE SHARON AND THEN RICHARD MORGAN.

OUR MINDS IS A QUESTION AND MAYBE A COMMENT.

I DON'T KNOW IF THIS IS A TIME TO SAY IT IN THE MASTER PLAN FROM 29TH STREET.

[01:30:03]

IT'S PARKING FROM 29TH TO 33RD.

AND I KNOW I'VE SPOKEN TO YOUR OFFICE ABOUT SOME ENHANCEMENT BEAUTIFICATION ON 33RD STREET, AND THAT AND THAT AREA ARE IN THE MASTER PLAN. HAVE THERE BEEN ANY THOUGHTS OF THINKING ECONOMICALLY FOR THAT AREA? I MEAN, I KNOW PEOPLE THEY GO TO THE CRUISE SHIP, BUT A GOOD STORE THERE THAT WOULD BENEFIT BOTH COMMUNITY AND YOUR CRUISERS BECAUSE THEY HAVE TO STOP AND WALK OVER TO CVS WITH THEIR LUGGAGE OR WHATEVER.

BUT I'M JUST WONDERING. IN THE MASTER PLAN.

I HAVEN'T READ IT, DON'T KNOW ANYTHING ABOUT IT.

BUT HOW ARE WE LOOKING AT THAT PARTICULAR AREA? BECAUSE I SEE WE'RE GOING WEST.

WE'RE GOING EAST.

AND I THINK THAT'S AN AREA THAT WE MIGHT CAN LOOK AT SOME OF THE PARKING LOT, MAYBE CHANGING IT OR SO THAT'S I DON'T KNOW IF THAT'S A QUESTION, THAT'S A COMMENT. BUT I THINK WE NEED TO FIND A WAY TO BE INCLUSIVE OF SOME ECONOMIC DEVELOPMENT WITHIN THAT AREA.

AND COLLABORATION. I THINK, TO ANSWER YOUR QUESTION YOU KNOW, WE WHAT WE'RE TRYING TO DO IS MOVE ALL OF OUR PARKING NORTH OF HARBORSIDE DRIVE BECAUSE IT OBVIOUSLY IT'S IT'S MORE BENEFICIAL FINANCIALLY BECAUSE THE CUSTOMER WANTS TO PARK AT THE TERMINAL.

AND WE'VE PROVEN THAT THEY'LL PAY THE HIGHEST RATES THAT WE CAN CHARGE AT THE TERMINALS.

AND SO THE BEST THING FOR US TO DO IS TO GET ALL THAT TRAFFIC ON THE NORTH SIDE.

AND SOME OF THE THINGS THAT WE'RE THAT ARE HAPPENING RIGHT NOW, I KNOW IF YOU'VE SEEN IT, BUT AS A RESULT OF ADM, ALL THESE TRACKS IN HERE WERE USELESS. THEY WERE ALL SMALL GAUGE TRACKS, NEVER BEEN USED.

THEY WERE ONLY USED FOR EMPTY CAR STORAGE.

THEY'RE GONE NOW.

WE'VE BEEN TAKING THESE UP.

AND THIS WILL MOVE MORE PARKING ON THIS SIDE.

AND THEN YOU AND WE TALKED ABOUT TAKING USING THE INTERNAL ROAD.

THE INTERNAL ROAD IS COMPLETED RIGHT HERE.

THIS IS OUR PLAN IS NOW THAT TRAFFIC.

SO WE'LL COME UP HERE THROUGH THIS INTERNAL ROAD NETWORK AND INTO THESE NEW PARKING, THESE NEW PARKING AREAS RIGHT HERE.

ANOTHER THERE'S GOING TO BE A TWO WAY ROAD OR ONE WAY.

IT'S TWO WAY THAT'S FALLING.

IT'S FALLING DOWN THAT AREA.

THE BIGGEST PROBLEM WE HAVE IS THIS IS SO, SO COMPACT IN HERE.

BUT ONE OF THE GOOD THINGS THAT'S GOING TO HAPPEN IS THE RAIL.

THAT'S A LONG RIGHT ALONG SIDE HARBORSIDE DRIVE THAT YOU SEE WILL BE COMING UP NOW.

SO THAT WILL WIDEN THAT AREA IN THERE THAT ONLY SERVED DELMONTE.

YEAH. YEAH OKAY.

AND THE OTHER THING TOO, TO DAVID'S COMMENT, ALL THIS TRUCK TRAFFIC GOES AWAY.

400 TRUCKS A WEEK NOW WILL NO LONGER BE ON THIS ROAD OR OUT HERE CONGESTING THINGS AND AND THOSE TRUCKS, I MEAN THEY HAVE THEY DO WHAT THEY WANT TO DO, RIGHT? THEY'RE BIG BOYS AND THEY USED TO GO WHEREVER THEY WANT TO GO AND EVERYBODY GETS OUT OF THE WAY.

SO THE GOOD THING IS, IS ALL THAT AND ULTIMATELY THE PLAN, IF WE COULD EVER GET THE INTERNAL ROAD TO GET AN ELEVATED ROAD IS TO BRING ALL THAT TRAFFIC.

ALL THAT TRAFFIC FROM THE WEST END WILL THEN HIT THE INTERNAL ROAD NETWORK.

WE JUST GOT THE THE FINAL FUNDING TO TAKE THIS INTERNAL ROAD TO THE END OF OUR PROPERTY.

SHARON, DID THAT ANSWER YOUR QUESTION? WELL, YEAH.

ROGER, WE STILL, I THINK, COUNCILOR LEWIS, WITHIN YOUR MASTER PLAN, ARE THERE ANY FUTURE PLANS TO DO SOMETHING DIFFERENT WITH HAVING STRICTLY PARKING LOTS FROM 29 TO 30 THIRD WITHIN THE COMMUNITY? CAN ANY OF THOSE PARKING LOTS BE CONVERTED INTO SOME KIND OF ECONOMIC DEVELOPMENT THAT WILL BENEFIT PASSENGERS AS WELL AS THE WILL CITIZENS? BECAUSE I HEAR SOME OF US TALKING ABOUT CITIZENS HERE, SO THAT THAT AREA, ALL OF THIS LAND HERE, AS YOU KNOW, WE BOUGHT WE BOUGHT THAT LOT DOWN HERE ALSO, ALL THAT LAND, WE HOPE TO TURN IT INTO CARGO AREAS IN OR THAT THIS IS WHAT WE DON'T WE DON'T HAVE THAT PLAN.

WE DON'T HAVE THAT PLAN OF WHAT THAT CAN BE.

SO THIS IS OKAY.

PERFECT OPERATION, PERFECT TIME FOR US TO TALK ABOUT IT.

RIGHT. BECAUSE WE HAVE ONE BUSINESS THAT SITS IN THE MIDDLE.

LET'S KEEP THIS AS AN OPTION.

IS WHAT I'M HEARING SOMETHING OUTSIDE OF PARKING OR SOMETHING THAT COULD BENEFIT THE RESIDENTS AS WELL.

I'M ALL FOR THAT BECAUSE, YOU KNOW, YOU AND I, WE TRIED TO GET A, A GRANT TO TAKE THAT 33RD CORRIDOR AND REDO IT. ALL RIGHT.

AND, YOU KNOW, FOR SOME REASON IT WASN'T A PRIORITY FOR ONE OF OUR CONGRESSMEN, BUT YOU KNOW, THAT TURNED OUT TO BE WE DIDN'T GET IT.

BUT, YOU KNOW, WE HAVEN'T ABANDONED IT BECAUSE I HEAR AGAIN, PRETTY PORT, RIGHT? I MEAN, WE DON'T IT DOESN'T HAVE TO LOOK LIKE, YOU KNOW, WE'RE RUNNING A BUNCH OF TRUCKS OUT OF THERE, RIGHT?

[01:35:03]

YEAH, WE NEED TO NOT NEGLECT THAT.

JUST. YEAH, IT'S MORE THAN JUST A PASS THROUGH, BUT WE NEED TO NOT NEGLECT ANY AREA.

RIGHT? RIGHT. YES.

BUT RIGHT NOW THAT THAT AREA IS NOT INCLUDED AT ALL.

I THINK YOU GOT COUNCILWOMAN LEWIS'S CONCERNS THERE.

YEAH, AND IT'S ALL RIGHT.

DULY NOTED. WE WILL WE'LL GET ON THAT.

AND I LIKE THAT. I LIKE THAT IDEA, RICHARD.

YEAH. THANK YOU. I'D JUST LIKE TO CIRCLE BACK TO THE AGENDA AND TALK ABOUT THE UPDATE TO THE MASTER PLAN.

THAT'S ALWAYS A GOOD PLAN.

YEAH. WELL, I.

I THINK WHAT I'VE HEARD TODAY AND WHAT I THINK I'M HEARING, IS HOW IMPORTANT THE UPDATE PROCESS WILL BE, HOW IMPORTANT IT'LL BE TO INCLUDE SOME VERY KEY STAKEHOLDERS.

AND THAT'S THE LANDOWNERS IN THE AREA FROM 2527 ALL THE WAY DOWN TO TEN RELATIVE TO PARKING AND TO BEAUTIFICATION. AND WE SHOULD GET THAT LET THEM INFORM OUR MASTER PLAN AND LET US INFORM THEIR PLANS AND WORK TOGETHER SO THAT WE CAN COME UP WITH A MASTER PLAN.

FIRST OF ALL, I'M VERY IMPRESSED WITH THE CURRENT MASTER PLAN FROM A DOCUMENT, AND IT'S A VERY DETAILED.

IT'S A VERY DETAILED PLAN.

AND THE PORT HAS FOLLOWED IT.

IT'S LIKE MARCHING ORDERS, YOU KNOW, AND THAT'S THAT'S GOOD.

THAT'S UNUSUAL WHEN PEOPLE MAKE A PLAN AND IT'S ACTUALLY FOLLOWED.

BUT AS WE UPDATE IT, WE SHOULD BE DONE FAIRLY QUICKLY, I WOULD THINK, IS TO INCLUDE THOSE STAKEHOLDERS IN THAT AREA WHERE WE'RE TALKING ABOUT THE PARKING AND OTHER, LET'S JUST SAY LAND USE.

WHAT'S THE HIGHEST AND BEST USE FOR ALL THIS LAND, AND HOW ARE WE GOING TO GET AN OPTIMUM AMOUNT OF PARKING FOR EVERYONE? AND IT'S EASY TO FORGET TO DO THAT.

SO I'M ASKING THAT WE WE IT WOULD BE A GOOD PROCESS.

AND YOU'RE NOT TALKING ABOUT MORE THAN 4 OR 5 KEY STAKEHOLDERS IN THAT AREA.

INCLUDE THE STAKEHOLDERS THAT YOU'RE TALKING ABOUT.

GET SOME COMMERCIAL ASPECTS ON THE MID-CENTRAL AREA THERE AND THEN.

AND THIS ISN'T EXACTLY RELATIVE TO THE MASTER PLAN, BUT IT DOES IMPACT ON IT AS THE SOONER WE CAN IDENTIFY HOW WE'RE GOING TO ADDRESS THE WEST PORT DEVELOPMENT AND WHO AND HOW WE'RE GOING TO PARTNER WITH FOLKS, THE BETTER.

AND SO I'D LIKE TO SEE THAT GET STARTED AS SOON AS POSSIBLE, BECAUSE THAT I THINK ALL THAT CAN BE A GAME CHANGER.

I AGREE COMMENT I KNOW, I KNOW, IT MADE A LOT OF COMMENTS.

ONE OTHER COMMENT AND I'LL POINT OUT IS OBVIOUSLY THIS IS DRAFT ON IT.

SO OUR PLAN, ONE OF THE THINGS WE JUST WE JUST DID WAS WE WERE, WE WERE KEEPING A, A CAPITAL PLAN HERE.

AND THEN WE HAD THE MASTER PLAN.

SO FROM THIS POINT GOING FORWARD, OUR MASTER PLAN IS OUR CAPITAL PLAN.

SO WE DON'T HAVE MORE THAN ONE DOCUMENT.

WE'LL BE BUILDING THAT WHEN WE BUILD UPON THIS ON AN ANNUAL BASIS.

THEN WE WILL WE'LL BE WE'LL USE THIS AS OUR AS OUR ROADMAP.

AND IF IT'S NOT ON THE CAPITAL PLAN, THEN IT'S ALWAYS GOING TO TAKE AN ACT OF CONGRESS TO, TO DO SOMETHING DIFFERENT.

BUT SOUNDS GOOD.

YOU KNOW, WE'VE MARIE, YOU HAD YOUR HAND UP.

DID YOU WANT TO SAY A FINAL COMMENT? THANK YOU. WELL, WELL, I WILL, I WILL.

WE ALMOST ALWAYS CONTRARY FOR ME NOT TO, BUT I MEAN, I THINK IT'S EXCITING WHAT'S HAPPENING AT THE NEW THE PLANS FOR THE NEW TERMINALS.

I DO THINK WE NEED TO BE OF YOU KNOW, HOW MUCH THE TRAFFIC AFFECTS OUR CITIZENS, HOW WE CAN MAKE THAT BETTER? I NEVER UNDERSTOOD THAT RANDOM TRAIN THAT WOULD GO PAST FISHERMAN'S WHARF RIGHT WHEN I WAS WALKING INTO ROTARY.

IT'S LIKE, WHERE DID THIS THING GO? AND HOW DID IT END UP IN THE MIDDLE OF YOUR HER FIVE INCH HEELS GOT CAUGHT IN THE RAIN.

YES. BUT SO I'M HAPPY TO SEE US MOVING THIS WAY.

I ALWAYS GET NERVOUS WHEN I HEAR JOHN PAUL TALKING ABOUT DEVELOPMENT, SINCE HE IS A DEVELOPER.

AND I MEAN, GRANTED, IT WAS WHAT HE DOES BEING A PARTNER WITH JIM YORBA SON, YOU KNOW, THAT COMES INTO PLAY KNOWING THAT THEY ALREADY TRIED TO PIECE BY A PIECE OF PELICAN ISLAND.

I GET CONCERNED THAT YOU MIGHT HAVE ULTERIOR THOUGHTS ON THIS, BUT I THINK IT WOULD BE GOOD.

[01:40:06]

BUT I ALSO AGREE WITH SHARON BECAUSE WE ARE SO MISSING THAT OPPORTUNITY IN THAT PART OF THE ISLAND, AND WE'RE SO MISSING THE OPPORTUNITY THAT HOW MUCH HOT TAX DO YOU GET FOR ADVERTISING OF THE DESTINATION OF A PORT? OH, RIGHT.

THAT'S ZERO.

AND YET WE HAVE THE.

YOU KNOW, WITH THE CONVENTION VISITORS OR THE PARK BOARD CLAIMING THEY BRING IN 7 MILLION TOURISTS EVERY YEAR, BUT YET 2 MILLION OF THEM ARE SOLELY JUST GOING TO THE PORT.

AND AGAIN, EVERYBODY KNOWS I TRAVEL AS WE ALL TRAVEL, AND I ALWAYS RUN INTO PORT PASSENGERS THAT SAY, DAMN, I WISH SOMEBODY WOULD HAVE TOLD ME THAT GALVESTON HAD ALL THIS GREATNESS SO I COULD HAVE COME IN EARLIER. I THINK THE IDEAS OF HAVING SOME RETAIL TIED IN WITH PARKING LOTS.

I ALWAYS LIKE.

AND THIS IS ON THE BEACH SIDE, BUT IT COULD REFLECT THE THE PORT SIDE AS WELL IS IF YOU'VE EVER SEEN WHAT THEY DID IN CLEARWATER, FLORIDA, AND THEY WANTED TO GET ALL THEIR PARKING OFF THEIR SEAWALL AND JUST FLIP IT OVER TO THE PORT SIDE. THEY ACTUALLY, LIKE, DID PRIVATE PUBLIC PARTNERSHIPS WITH DIFFERENT DEVELOPERS ENTITIES.

THEY DID PARKING LOTS WITH HOTELS ON TOP.

THEY DID EVEN RETAIL PUT PARKING UNDER THEM.

SO IN THIS CASE IT WAS CITY OWNED PARK.

THE, THE RETAILER OWNED PART.

SO WE COULD LOOK AT HOW WE CAN BE CREATIVE.

I THINK YOUR IDEAS ABOUT DEVELOPMENT OF ADDING RETAIL RESTAURANTS.

I THINK, YOU KNOW, THAT'S A THAT'S IT'S A GOOD IDEA.

AND WE ALWAYS HAVE TO STAY CONSCIOUS, AS SHEILA SAID, HOW WE PROTECT OUR CITIZENS BECAUSE WE ARE AN ISLAND AND THERE IS A LOT OF DENSITY ALREADY.

AND HOW WE CAN USE THOSE INTERNAL ROADS.

AS I SAID, I'M SO HAPPY THAT TRAIN WILL BE GONE.

WELL, I WAS I DON'T WANT TO INTERRUPT YOU HERE, BUT, YOU KNOW, THERE ARE SOME CHALLENGES WITH THAT TRAIN BECAUSE AND I THINK BRIAN CAN TELL YOU THERE THAT WAS DONE WITH GRANT MONEY. AND SO THERE ARE SOME ISSUES WITH TAKING UP THE TRACK FOR THE TROLLEY.

THESE THAT'S WHAT WE'RE BEING TOLD.

THAT'S CORRECT. OKAY.

AND WHILE THE OTHER QUESTION I WOULD HAVE IS WHEN YOU WERE TALKING ABOUT THE AREA THAT SHARON WAS TALKING ABOUT AND YOU WERE SAYING THE TRAINS ARE GONE.

DOES THAT MEAN ALL THOSE ENGINES ARE GONE, THOSE SANTA FE ENGINES? NO. ARE WE EVER GOING TO GET RID OF THAT? GET RID OF WHAT? ALL THOSE DEAD ENGINES.

TRAIN ENGINES? NO, I'LL TELL YOU WHAT. WHAT IT'S GOING TO TAKE TO GET RID OF ALL THAT IS TO BE ABLE TO PUT FORTH A TRANSACTION THAT THAT MAKES THEM WANT TO DO SOMETHING DIFFERENT FOR THAT. I MEAN, BECAUSE THAT'S WHAT IT IS.

EVERY TIME THEY EVERY TIME WE TALK TO THEM ABOUT THAT PROPERTY DOWN THERE, IT'S LIKE, BRING US A DEAL, YOU KNOW, BRING US A DEAL THAT ALLOWS THE RAILROAD TO BENEFIT FINANCIALLY FROM MOVING CARGO INTO THAT AREA.

AND WE'VE TRIED I MEAN, WE HAD LONG CONVERSATIONS WITH VOLKSWAGEN ABOUT BUILDING A FACILITY RIGHT THERE, AND THEY COULD LOAD THE TRUCKS, LOAD THE CARS ON A TRAIN RIGHT THERE.

AND YOU KNOW, OBVIOUSLY WE'RE UP AGAINST.

I MEAN, I DON'T THINK WE COMPETE FROM FROM A COMMUNITY, FROM A CRUISE AND A TOURISM STANDPOINT WITH ANY OTHER PORT ANYWHERE.

RIGHT? I MEAN, WE HAVE THAT AND THAT'S SOMETHING THAT'S REALLY SPECIAL.

BUT I'LL TELL YOU, ONE OF THE THINGS THAT WHEN YOU GO DOWN AND I TOURED FREEPORT JUST RECENTLY, THE PORT DOWN THERE, THOUSANDS OF ACRES, THEY HAVE THOUSANDS OF ACRES.

SO WE'RE COMPETING AGAINST THEM ON THE CARGO BUSINESS.

SO, YOU KNOW, THOSE ARE THE THOSE ARE THE KIND OF THINGS WITH OUR CARGO BUSINESS.

WE HAVE TO FIND THAT NICHE.

RIGHT. AND I THINK THAT NICHE CAN BE CONTAINER CAN BE A CONTAINER.

BUT IT WILL BUT IT WILL BE CONTAINERS PROBABLY FOR ONE ENTITY, WOODEN LIKE WOOD CONTAINERS.

I MEAN, THE ONE THING WE ALL KNOW ABOUT CONTAINERS IS THEY'RE NOISY.

I MEAN, I HAVE TO DO IS GO TO BAYPORT AND YOU CAN WATCH AND LISTEN AND A LOT OF LIGHTS, A LOT OF NOISE.

SO DOES THAT MAKE MORE SENSE TO HAVE ON PELICAN ISLAND VERSUS ON THE THE NORTH SIDE OF THE PORT IS, IS

[01:45:11]

WE'VE HAD CAN WE OPEN IT UP AND WE CAN CIRCLE BACK TO THIS DISCUSSION, BUT CAN WE OPEN IT UP TO ITEM THREE? SEE, WE'VE HAD THE BATTLESHIP TEXAS PEOPLE HERE.

LET'S DO THAT AND THANK YOU, VIC.

AND MAYBE GET A LITTLE.

I DON'T THINK WE'LL SPEND A WHOLE LOT OF TIME ON ON THIS, BUT WE SHOULD NOT IT.

UNLESS THERE'S OTHER QUESTIONS ON ITEM THREE A AND THREE B, WE'RE GOING TO MOVE TO ITEM THREE C.

[3.C. Discussion Of The Status Of The USS Texas]

OKAY, OKAY.

WE VOTED TUESDAY TO UNDER TERMS OF THIS TERM SHEET TO MOVE FORWARD WITH THE BATTLESHIP TEXAS AT PIER 20. AND SOME REPRESENTATIVES ARE HERE.

IT'S FINANCIALLY A POSITIVE FOR THE PORT.

BUT THERE ARE A LOT OF HURDLES TO CLEAR BEFORE WE GET TO THE POINT OF THE BATTLESHIP MOVING ACROSS.

IT'S STILL ACROSS THE CHANNEL AT GULF COPPER, AND IT'LL BE THERE UNTIL AUGUST OF.

YES. CORRECT. 2024.

SO IT'S IT'S A WAYS OFF, BUT THE APPROVALS NEED TO COME FROM THE CORPS OF ENGINEERS.

THE APPROVALS NEED TO COME FROM THE GENERAL LAND OFFICE, THE COAST GUARD, AND THEY HAVE TO COME BACK TO US, AS YOU'VE HEARD AND THEY'VE HEARD FOR ABOUT TWO HOURS NOW.

ACCEPTABLE PARKING PLAN.

WE'RE GOING TO INCREASE THE AMOUNT OF DOLLARS COMING INTO THE PORT.

AND LAST YEAR WE RECEIVED RIGHT AT $100,000 TO OUR OPERATING FUND.

WE'LL GET 240,000.

AND THEY WILL ESTABLISH WE'D ASK THEM FOR $1 MILLION IF AS A RESERVE FUND, WE'RE INCREASING THAT TO 1,000,002.

AND THAT'LL BE FUNDED BY A MINIMUM OF 20,000 A MONTH FOR THE NEXT FIVE YEARS.

SO WE'LL OPEN IT UP IF ANYBODY HAS ANY QUESTIONS.

WE WE HAD A GREAT PRESENTATION.

WE GOT A PICTURE OF SLIDE WHERE TILLMAN'S FERTITTA 360 FOOT BOAT WORKS WITH THE PLACEMENT SO THAT THAT THEY MADE A DEAL.

ONE OF THE KEY PIECES IS LANDRY'S WILL BE MARKETING THE BATTLESHIP.

AND I THINK THAT'S A KEY PART OF THE DEAL.

BUT WE DID WANT TO.

IT'S A SIGNIFICANT THING THAT WE VOTED ON TUESDAY, AND WE WANTED TO.

IF YOU HAD ANY QUESTIONS ABOUT IT, WE WE HAVE COUNCILMAN COLLINS, FINKLEA AND LISTOWSKI.

AND COUNCILMAN COLLINS IS GOING TO ASK ABOUT WHAT THE PARKING IS GOING TO BE, PARKING AND TRAFFIC.

GOOD GUESS, MAYOR. GOOD GUESS.

PARKING AND TRAFFIC.

WE'RE REALLY TALKING ABOUT 275,000 VISITORS A YEAR.

I UNDERSTAND THAT'S THE REQUIREMENT.

WHERE ARE YOU GOING TO PARK THEM? I MEAN, WE WE UNDERSTAND THIS IS AN ADDED AMENITY.

IT'S IT'S WE'VE ALL BEEN TO THE BATTLESHIP.

WE IN THE FOURTH GRADE YOU KNOW, SO IT'S IT'S REALLY AN ADDED AMENITY.

I DON'T KNOW IF IT'S GOING TO PUT A LOT OF NEW HEADS IN BEDS, BUT 275,000 PEOPLE A YEAR, MOST OF THEM CLUSTERED IN THE SUMMER, OF COURSE.

WHERE ARE YOU GOING TO PUT THEM? WELL, WE DON'T KNOW YET.

THIS APPROVAL IS SUBJECT TO THEM.

BRINGING SOMETHING BACK IS AN HONEST ANSWER BECAUSE I LOOK I LOOK AT THE SPACE DOWN THERE AND WE'RE WE'RE CT16 IS EATEN INTO IT PRETTY QUICK.

2025 IS EATEN INTO IT PRETTY QUICK.

I DON'T THAT'S I'M NOT SURE.

THAT'S WHY WE CONDITION THE APPROVAL ON GETTING A PLAN.

SO VIC, I SEE A TOM PERRY.

THE FOUNDATION IS MOVING FORWARD.

BATTLESHIP FOUNDATION.

TONY GREGORY, OUR CEO, IS HERE.

I MEAN, I WE ARE AWARE OF THE PARKING ISSUE, AND WE HAVE LOOKED INTO THAT SOMEWHAT.

I WOULD POINT OUT ONE STATISTIC, THOUGH.

WE STARTED PARKING.

WE STARTED TALKING WITH ON THIS THREE YEARS AGO.

AND AS MARY SAID EARLIER, THEY MENTIONED 7 MILLION TOURISTS YEAR IN GALVESTON.

THE NEXT YEAR WAS 8 MILLION AND NOW IT'S 9 MILLION.

AND THE CRUISERS, I BELIEVE.

ROGER, YOU ARE OVER A MILLION AIMING FOR A MILLION AND A HALF.

SO OUR VIEW TO IS THAT WE HOPE TO GET 300,000.

THAT WOULD REALLY BASED ON THE DELOITTE STUDY THAT WE COMMISSIONED YEARS AGO, THE ESTIMATE FOR 225,000 TO APPROXIMATELY 300,000.

WE THINK A LOT OF THOSE PEOPLE WILL BE HERE ALREADY.

OF THE 9 MILLION OR THE MILLION AND A HALF CRUISERS, WE THINK A LOT OF THOSE PEOPLE WILL BE HERE ALREADY.

AND THEN I WOULD POINT OUT THAT IN ADDITION TO THAT, THAT YOU CAN READ ALL THE TIME.

[01:50:02]

PEOPLE GOING TO BATTLEGROUNDS AND MUSEUMS AND HISTORICAL ARTIFACTS, AND THEY ARE GENERALLY OLDER PEOPLE.

THEY TRAVEL A LOT IN THE OFF SEASON BECAUSE RATES ARE CHEAPER AND THERE'S LESS TRAFFIC, ETC.

SO WHILE WE KNOW THE PARKING IS AN ISSUE, WE DON'T THINK IT'S AN INCREMENTAL ISSUE.

IT'S NOT JUST AN ABSOLUTE.

IT'S NOT LIKE 275,000 NEW PEOPLE ARE GOING TO SHOW UP ON JULY THE 4TH.

IT'S AN INCREMENTAL ISSUE.

WE DID TALK TO FROST GARAGE PEOPLE WHO INDICATE THEIR GARAGE IS UNDERUTILIZED AND THEY HAVE PLENTY OF SPACES, AND IT'S ABOUT A FOUR BLOCK, MAYBE A 5 OR 6 MINUTE WALK, WHICH THE PARK BOARD SAID THEY WANT PEOPLE TO WALK AROUND DOWNTOWN BECAUSE THEY GO PAST SHOPS AND BARS AND SPEND MONEY.

SO WE THINK THAT'S ONE OPTION.

I KNOW THAT LANDRY'S IS TALKING ABOUT A PARKING GARAGE JUST IN OUR INFORMAL DISCUSSIONS WITH THEM.

AND OBVIOUSLY YOUR MASTER PLAN, THE PORT'S MASTER PLAN HAS IT IN THERE.

BUT WE REALLY THINK THE PARKING ISSUE IS, AS I SAID, IT'S JUST AN INCREMENTAL ISSUE, BECAUSE WHILE WE HOPE TO ATTRACT PEOPLE WHO WOULD NOT COME OTHERWISE, A LOT OF THEM WILL COME DURING NON-PEAK TIMES.

AND WE ALSO HOPE TO ATTRACT A LOT OF PEOPLE WHO ARE ALREADY HERE TO SPEND A LITTLE MORE MONEY, MAYBE STAY A LITTLE LONGER, BUT THEY'LL ALREADY BE HERE AND THEY'LL ALREADY BE PARKING. SO WE BUT WE THAT'S ONE OF THE PRECONDITIONS TO THE LEASE WITH THE PORT.

DEWITT DAVID FINKLEA.

YEAH. SO TO THAT END, I KNOW IT'S JUST INCREMENTAL, BUT IF YOU IF YOU DO THE MATH REAL QUICK, YOU'RE TALKING ABOUT, YOU KNOW, IF YOU OPERATE 300 DAYS A YEAR AND YOU'RE LOOKING FOR 300,000 PEOPLE, YOU'RE TALKING A THOUSAND PEOPLE A DAY.

I KNOW THAT'S I KNOW THAT'S INCREMENTAL, BUT ALL IT TAKES IS ONE MORE CAR ON HARBOR SIDE TO PUSH IT TO ITS BREAKING POINT.

AND SO WHILE I ABSOLUTELY ENCOURAGE THIS TYPE OF AMENITY TO COME TO GALVESTON, I THINK A A GOOD COHERENT TRAFFIC IMPACT STUDY WOULD BE WARRANTED, ALONG WITH COLLABORATION WITH THE PORT AND AND WORKING IN HARMONY WITH THEIR PARKING MASTER PLAN TO DEFINE, IF NOT ON DAY ONE, THEN ON DAY X THAT YOU UNDERSTAND THAT WE HAVE TO MAKE SOME ADDITIONAL INVESTMENT IN PARKING IN ORDER TO ACCOMMODATE THE THE AMENITY.

I AGREE WITH THAT. I WOULD SAY WE'VE ALREADY STARTED LOOKING AT THAT AND WE'LL GET.

SO, CHAIRMAN, I'D ASK FOR YOU TO ACTUALLY FORMALLY DO THAT AS A TRAFFIC IMPACT STUDY.

UNDERSTAND THAT. AND IF YOU'LL NOTICE IN THE THE MATERIAL WE HAVE FOR THE BATTLESHIP TEXAS LEASE, THIS IS NOT BEEN THIS PROVED THIS LEASE IS NOT BEEN APPROVED AS YET FORMALLY BY THE WHARVES BOARD.

AND THERE IS, AS VIC MENTIONED, THEY HAVE TO BRING BACK A PARKING PLAN FOR US TO REVIEW BEFORE WE MOVE FORWARD.

I HAVE I HAVE ONE ONE ADDITIONAL QUESTION.

I REALIZE THIS IS NOT THE LEASE THAT WE'RE LOOKING AT HERE, BUT IT ADDRESSES THE DEFAULT.

WHAT WHAT CONSTITUTES DEFAULT? WHAT HAPPENS IN THE CASE OF DEFAULT? WHAT HAPPENS IF THIS DOESN'T WORK OUT? I'VE BEEN ASKING THIS QUESTION SINCE DAY ONE.

THEN WHAT DO YOU DO? THIS 600 FOOT BATTLESHIP REEF? WELL, A COUPLE OF THINGS.

NUMBER ONE, NUMBER ONE, IT'S OWNED BY THE STATE OF TEXAS.

THAT'S WHO OWNS THE SHIP.

NUMBER TWO, WE'LL HAVE 1,000,002 IN A RESERVE FUND FOR THAT SCENARIO.

TO WHAT? TO MOVE IT, MOVE IT, MOVE IT, WRAP IT, WHATEVER.

WE CAN WORK IT. IT IS THE STATE'S PROPERTY AND IS PARKS AND WILDLIFE.

WE'VE WE'VE WE DEALT WITH THIS IN A CONVERSATION WITH, WITH WITH PARKS AND WILDLIFE AND THE BATTLESHIP TEXAS FOUNDATION SEVERAL YEARS AGO AT THE PARK BOARD.

THE ANSWER IS THEY DON'T KNOW WHERE THEY'D PUT IT BECAUSE PARKS AND WILDLIFE DOESN'T HAVE THE MONEY TO DO THIS.

YOU CAN SAY IT'S THEIR PROPERTY AND THEY THEY'RE RESPONSIBLE FOR IT.

BUT THINK ABOUT HOW MUCH TROUBLE THEY'VE HAD GETTING OUT OF THE TEXAS LEGISLATURE, THE MONEY THEY'VE GOTTEN TO DATE.

WELL, WE'VE GOTTEN $60 MILLION TO DATE.

AND YOU CAN IDENTIFY YOURSELF.

PLEASE, TONY, COME ON UP FORWARD.

AND WE WANT TO WOULD YOU AND TOM COME A LITTLE MORE FORWARD AND IDENTIFY YOURSELF? TONY WE HAVE THE COMMUNITY WATCHING.

WE NEED TO SEE YOUR IDS TO SAY AGAIN WHEN YOU SEE YOUR IDS ALSO.

OH, TONY GREGORY, THE PRESIDENT AND CEO OF BATTLESHIP TEXAS FOUNDATION.

IT'S ALREADY INTRODUCED HIMSELF AS THE CHAIRMAN.

I'M NOT SURE THAT THE STATE OF TEXAS IS REALLY WILLING FOR THE BATTLESHIP TEXAS TO DISAPPEAR OR FOR THEM TO WASH THEIR HANDS OF IT COMPLETELY, SINCE IN THE PAST TEN YEARS, THEY'VE GIVEN US THEY'VE APPROPRIATED $60 MILLION TO RESTORE THE HULL, WHICH IS GOING ON RIGHT NOW ACROSS THE STREET. SO AND AS WELL, THE RESERVE FUND WENT FROM 1 MILLION TO 1,000,002.

SO THE WORST CASE IS WE TOW IT OUT TO THE OPEN OCEAN AND MAKE A REEF OUT OF IT.

RIGHT. SO IT COST US $1 MILLION TO TOW IT FROM SAN JACINTO TO GULF COPPER.

SO THAT'S WHERE WE CAME UP WITH THAT NUMBER.

AND SO IT WILL BE AN ESCROW.

[01:55:02]

WE CAN'T USE IT.

IT'S THE WHARVES BOARD'S CONTINGENCY IN CASE EVERYTHING GOES.

WHILE THE STATE STILL OWNS A BATTLESHIP.

WE TALKED TO THE STATE. TONY TALKS TO THE STATE ALL THE TIME, PARKS AND WILDLIFE AND THE TEXAS HISTORICAL COMMISSION, AND THEY'VE APPROPRIATED MONEY EVERY YEAR FOR THE BATTLESHIP.

THEY TURN THE MANAGEMENT OVER TO US BECAUSE THEY WERE TIRED OF MANAGING IT, BUT THEY STILL APPROPRIATED MONEY.

THEY HOPE THEY DON'T HAVE TO IN THE FUTURE, BUT THE STATE STILL OWNS IT.

AND AS YOU SAID, THEY GAVE US 35,000,002 YEARS AGO.

THEY GAVE US 25 MILLION THIS YEAR.

AND SO I REALLY DON'T THINK THE THEY WANT TO BE THE TEXAS LEGISLATURE THAT'S LOST THE BATTLESHIP TEXAS.

BUT IF THEY DO, WELL, AS TONY SAID, WE'LL TOW IT OUT TO THE GULF AND AND SINK IT.

BUT I REALLY DON'T THINK THAT'S GOING TO HAPPEN.

BUT THAT'S WHAT THE CONTINGENCY FUND IS FOR.

THAT'S WHAT THE MONEY IS FOR. WE HAD AN AGENCY PLAN WE COULD APPLY TO A LOT OF THINGS, TOW IT OUT, I LIKE IT.

YEAH. JOHN AND THEN MARIE I JUST WANT TO SAY THAT I'M VERY EXCITED THAT THIS IS MOVING FORWARD.

I'VE BEEN A HUGE SUPPORTER OF THE BATTLESHIP FROM DAY ONE SINCE I HEARD IT IS A POSSIBILITY TO COME TO GALVESTON.

I APPRECIATE THE HONEST ANSWER OF, HEY, WE DON'T WE DON'T KNOW THIS PARKING SITUATION YET, BUT BUT YOU'RE AWARE OF IT, AND YOU'RE YOU'RE MOVING FORWARD WITH TRYING TO SOLVE THAT ISSUE. AND I THINK THAT THAT GOES BACK TO THE MASTER PLAN.

GET THAT INTO MASTER PLAN AS WELL.

FIGURE OUT PARKING DOWN THERE.

I MEAN, PARKING PARKING IS A MONEY MAKER.

SO I DON'T I THINK IT WOULD BE A MONEY MAKER FOR THE FOR THE BATTLESHIP AS WELL, OR FOR THE PARKING GARAGE THAT WOULD SERVE THAT IF THAT'S THE ROUTE TO GO.

SO JUST CAN'T BE MORE HAPPY THAT IT'S.

WE'RE TAKING THE NEXT STEP AND AND MOVING FORWARD.

AND I'M GOING TO FULL DISCLOSURE, THIS IS ACTUALLY SHRUB KEPNER'S QUESTION BECAUSE IN HIS OFFICE, HE WATCHES THE CRUISE SHIPS COME IN AND DO EITHER OR DIFFERENT BOATS COMING IN BEING TUGGED IN.

AND HIS CONCERN WAS ABOUT THE TURNING RADIUS OF THE OTHER BOATS AND WHERE THE TEXAS WILL BE BERTHED.

WE HAVE. CAN I TAKE THAT? SURE. SO WE HAVE TO GET APPROVAL FROM THE CORPS, FROM THE PILOTS, FROM THE COAST GUARD.

WE DON'T STICK AS FAR OUT INTO THE CHANNEL AS THE OCEAN STAR DOES.

WILL BE INSIDE OF HOW FAR OUT IN THE CHANNEL THE OCEAN STAR STICKS OUT.

WILL BE ABOUT 50 CURRENTLY.

WILL BE ABOUT 50FT INTO THE FEDERAL CHANNEL, WHICH WE THINK IS IS DOABLE.

AND YOU KNOW, THE THE COAST GUARD REALLY LIKES US THESE DAYS BECAUSE THEY SAW THAT WE MOVED THE SHIP FROM SAN JACINTO TO GULF COPPER WITH NO PROBLEMS WHATSOEVER.

WE'VE TALKED TO THE HOUSTON PILOTS.

THEY SEEM TO BE IN FAVOR OF IT.

AND THE GALVESTON PILOTS, WE MET WITH THEM GALVESTON PILOTS.

I WATCHED WHEN SHE WAS COMING IN FROM THE GALVESTON PILOTS BOAT.

AND YOU GUYS DID AN AMAZING JOB OF MOVING HER IN.

AND I 100% SUPPORT THE PROJECT.

I JUST PROMISE.

ROBB I WOULD ASK THAT WE MET WITH THE PILOTS, AND THEY INDICATE THAT THEY'RE VERY MUCH IN FAVOR OF IT.

THEY RECOGNIZE THE VALUE OF IT AND THEY DON'T THINK IT'LL BE A SIGNIFICANT PROBLEM.

IT'S JUST LIKE THIS, THIS ISSUE THEY DEAL WITH UP HERE, THERE IS THERE'S AN EXISTING TURNING BASIN THAT'S DREDGED TO 1500 FEET, WHICH IS RIGHT HERE.

THIS IS WHERE ALL THE CRUISE SHIPS TURN AND EVERYTHING.

EVERY NOW AND THEN YOU SEE ONE TURN DOWN HERE BECAUSE A SMALL SHIP AND THEY AND THEY CAN STAY WITHIN THE CHANNEL AND THEY, THEY GET THAT ALL APPROVED.

BUT THIS IS THE OFFICIAL TURNING BASIN FOR THE CRUISE LINES BECAUSE THEY HAD THE THE LONGEST.

ROGER. DID YOU MEAN TO SAY 1500 FEET, 1500 FEET IN WIDTH? THAT'S A WIDTH. NOT THAT GREAT.

HE THOUGHT. HE THOUGHT IT WAS THE DEPTH.

THE WIDTH OF COUNCIL.

WE DID. WE HAVE COUNCILMAN.

FINKLEA. DAVID.

YEAH. SO CHAIRMAN, ONE QUESTION THAT I HAD THE STATE OF THE CONTINGENCY FUND REACHES A GOAL OF $1.2 MILLION.

YOU'VE GOT A TEN YEAR LEASE, AND YOU'RE ESTIMATING TO REACH THE CONTINGENCY FUND GOAL AT THE YEAR END OF YEAR FIVE.

AND THEN IT STATES THAT IN YEAR SIX, THE RENT DROPS TO A MINIMUM RENT OF $2,200.

DO ANY EXCESS FUNDS JUST GO TO OPERATING EXPENSES? 22,000 SORRY, 22,000.

MY APOLOGIES. YEAH. THE PORT WANTED THE CONTINGENCY FUND UP FRONT, AND WE WORKED TO TRY TO MAKE THAT HAPPEN.

I MEAN, WE HAVE SOME MONEY IN THE BANK.

WE'VE RAISED MONEY OVER THE YEARS, BUT WE DIDN'T.

THAT WOULD BE DIFFICULT FOR US TO DO RIGHT NOW.

BUT WE DO HAVE SOME MONEY.

WE CAN CONTRIBUTE TO THAT. WE WE HAVE A FUNDRAISING CAPITAL CAMPAIGN GOING ON WHICH WE HOPE TO RAISE FROM MONEY AT WHICH WE MIGHT BE ABLE TO CONTRIBUTE TO THAT SOONER.

AND THEN, YOU KNOW, WE'RE VERY HOPEFUL THAT WE HAVE A LITTLE BIT OF A NEW STADIUM EFFECT IN THAT THE FIRST COUPLE OF YEARS, YOU KNOW, TOURISM WILL PEOPLE WILL HAVE THAT PENT UP

[02:00:08]

SO WE REALLY BELIEVE.

BUT I JUST HATE TO SAY IT OUT LOUD, ESPECIALLY WITH THE PRESS AND THE POLITICAL POWERS HERE, THAT WE WILL GET THAT FUNDED SOONER.

BUT WE JUST THAT PAYMENT IS A MINIMUM PAYMENT.

I GET 10% OF THE TICKET SALES AND USE.

IF YOU USE 300,000 TIMES $17 A TICKET, THAT'S 5.1.

THAT MEANS 510.

SO THE FIRST YEAR WOULD BE 240 PLUS THE 30 UP UNTIL WHAT WE'RE GOING TO TAKE INTO OPERATIONS, 240,000, WHAT WE'VE BEEN EARNING ROUGHLY 100,000 ON.

AND THEN ANYTHING ABOVE 4,000,008 IN TICKET REVENUE GOES INTO BUILD THAT FUND UP AS QUICK AS POSSIBLE.

OKAY. GREAT. THANK YOU.

WE REALLY COULDN'T SUSTAIN THAT IF THAT'S YOUR QUESTION.

COULDN'T SUSTAIN THAT LEVEL OF PAYMENT.

AND DEFINITELY WE WOULDN'T.

THE NUMBERS DON'T WORK. NO I UNDERSTAND THANKS.

PARTLY COMING OUT OF SAVINGS.

LET'S LET'S KIND OF WRAP THIS UP DAVID COLLINS WELL, YOU SAY 50FT INTO THE CHANNEL, INTO THE FEDERAL CHANNEL.

I DON'T KNOW WHERE THE FEDERAL CHANNEL STARTS VERSUS THE DOCK AND SO FORTH, BUT PICTURES I'VE SEEN BECAUSE OF MR. FERTITTA'S YACHT WOULD HAVE THE BATTLESHIP SITTING SOME 80FT FROM THE DOCK.

YEAH, BUT THE FEDERAL CHANNEL DOESN'T START.

I'M SORRY. ABOUT 100FT OFF.

150 STARTS ABOUT 100FT.

20FT OFF, OFF THE DOCK.

SO YOU STILL BE 50FT INTO THE FEDERAL CHANNEL.

THE FEDERAL CHANNEL IS IS SEVEN IS 700FT WIDE.

THAT'S GOOD INFORMATION.

I DIDN'T KNOW THAT. AND BUT WE'LL BE THE BATTLESHIP WILL BE INSIDE WHERE THE OCEAN STAR WAS.

THE OCEAN SIDE. IT'LL BE INSIDE OF THAT.

EVEN EVEN EVEN 80FT OFF THE DOCK.

THAT'S FURTHER OUT.

YOU KNOW, AND THE THING ABOUT THE 80FT IS, IS IT COULD VERY WELL COME BACK FROM THE COAST GUARD.

THEY CAN'T BE 80FT OFF.

I MEAN, THAT'S WHERE WE ARE.

THAT'S WHERE WE'RE THAT'S THE REASON WE WENT INTO THE LEASE NOW IS SO TO GIVE THEM THE ABILITY TO DEFINE A LOCATION WITH THE AUTHORITIES.

SO THEY TELL THEM HOW MUCH, HOW MUCH MONEY YOU'RE GOING TO SPEND OUT, IT WILL COST 5 OR $600,000 AND TAKE CLOSE TO A YEAR WITH 5 OR $600,000. JUST DO THE ENGINEERING TO PRESENT TO THE CORPS OF ENGINEERS THE PLAN ON HOW TO BERTH IT AND WHERE TO BERTH IT AND HOW TO SECURE IT.

AND THEN THEY TAKE MONTHS TO REVIEW THAT.

SO THAT'S WHY WE NEEDED SOME AGREEMENT WITH THE PORT, BECAUSE YOU HAVE TO HAVE A SITE TO PRESENT TO THEM.

AND WE'RE GOING TO SPEND $8 MILLION OF OUR OWN MONEY ON THE INFRASTRUCTURE.

LET ME ALSO SAY THAT BY THE TIME THINGS ARE DONE WITH THE SHIP, WE'LL HAVE SPENT ABOUT $38 MILLION WITH GULF COPPER.

WE WORK VERY HARD TO GET THIS SHIP TO GALVESTON TO REPAIR IT INSTEAD OF MOBILE OR TAMPA.

AND WE PARTICIPATED IN THE FINANCING OF THE DRY DOCK THAT BROUGHT IT HERE, THAT ONCE THE SHIP IS OFF.

GULF COPPER WILL BE DUE REPAIRING BIGGER AND BETTER SHIPS AND BARGES.

SO WE THINK THERE'S BEEN A GOOD ECONOMIC IMPACT.

LAST YEAR WAS THE FIRST YEAR IN 15 YEARS THAT GULF COPPER PAID ABOVE THEIR MINIMUM PAYMENT.

RIGHT? HOW MUCH EXTRA DID WE GET FROM 600, 600, $600,000 LAST CONTRACT.

BUT IF ANYBODY WANTS TO CONTRIBUTE TO THAT 8 MILLION, THE PORT OF THE CITY WOULD BE HAPPY TO TAKE IT, BECAUSE IT'S GOING TO BE TOUGH.

BUT WE'LL DO IT. HERE WE GO. WE HAD SHEILA, DID YOU WANT TO SAY JUST YOU ALL BROUGHT A DEPICTION TO THE BOARD MEETING THE OTHER DAY? WOULD YOU BE WILLING TO SHARE THAT WITH COUNCIL SO THEY CAN SORT OF SEE HOW THEY HAVE THAT WITH YOU? WELL, I DON'T HAVE THE THUMB DRIVE.

IT'S IN THE WHARFS AT ONE PICTURE.

HE MAY HAVE SOME WHARFS.

BOARD PACKET. YEAH I THINK I THINK IT WOULD BE VERY HELPFUL.

IT. YEAH IT HELPS TO VISUALIZE WHERE THIS SHIP IS GOING TO BE.

RIGHT. I WANT TO SAY AS YOU CAN TELL, I THINK THERE'S WIDESPREAD SUPPORT, OF COURSE, FOR HAVING THE TEXAS HERE.

AND I WANT TO I WANT THE COMMUNITY TO KNOW THESE TWO GENTLEMEN THAT ARE STANDING RIGHT NOW TONY GREGORY AND TOM PARISH.

WITHOUT THEM, THIS US, TEXAS WOULD NOT MEET AT THE POINT THAT IT IS AND BE PRESERVED.

I WANT TO THANK BOTH OF YOU GENTLEMEN.

THEY HAVE WORKED TIRELESSLY FOR THIS ENTIRE PROJECT.

SO THANK YOU VERY MUCH.

I APPRECIATE YOUR HANGING WITH US.

ALL OF US. OH. YOU'RE WELCOME.

THIS IS I'M EXCITED ABOUT HAVING IT HERE IN GALVESTON.

WE'RE EXCITED TO BE HERE. WE GAVE THE WE DIDN'T BRING THE THUMB DRIVE, BUT WE HAVE A HARD COPY OF THE PRESENTATION WE MADE, AND IT'S GOT THE TERM SHEET ON IT, TOO, SO YOU CAN, YOU KNOW, A LOT OF THAT TIME THERE ALSO HAS BEEN PAINFUL, I'M SURE.

RIGHT. IT'S BEEN VERY PAINFUL.

THEY THEY'VE BEEN THROUGH A QUITE A JOURNEY ON THIS WHOLE PROJECT IS PAINFUL.

THANK YOU. I MENTIONED THIS IN THE EMAIL BUT THANK YOU FOR YOUR PERSEVERANCE.

[02:05:03]

I MEAN, IF IT'S NOT HERE IN GALVESTON, I DON'T KNOW THAT WE'D BE FULFILLING OUR LEGISLATURE.

WHEN YOU GOT YOUR MONEY FROM THE STATE, WHAT STIPULATION DID THEY HAVE? ONE STIPULATION THEY HAD IN THE APPROPRIATIONS BILL.

I THINK IT STATES IT PRETTY MUCH BLACK AND WHITE.

YOU CANNOT GO BACK TO SAN JACINTO BECAUSE THEY ONLY GOT 80 TO $90,000 OF TOURISTS A YEAR AT SAN JACINTO, BECAUSE YOU HAVE TO DRIVE PAST ALL THOSE INDUSTRIAL PARKS AND REFINERIES AND CHEMICAL PLANTS, ALL THESE OTHER HISTORICAL SHIPS TO THE POINT DAVID, ABOUT WHAT HAPPENS, THEY GET THE NORTH CAROLINA, THE ALABAMA, THE ALL THESE SHIPS, THEY GET 250,300.

SOME OF THEM GET THE ALABAMA GETS, I THINK, CLOSE TO 400,000 PEOPLE.

THEY GET ABOUT 350,000 PEOPLE.

SO I MEAN, AND THE ALABAMA, WITH ALL DUE RESPECT, NOT NEARLY AS HISTORICAL AS THE TEXAS, NOR IS MOBILE NICE TOURIST ATTRACTION AS GOOD AS GALVESTON.

SO UNLESS SOMETHING IS REALLY AMISS, WE SHOULD DO VERY WELL, I THINK A GOOD FOOTBALL TEAM.

YEAH. THANK YOU.

THEY THEY HAVE A LOSS, DON'T THEY? JUDGE? JUST FOR THE RECORD, ALABAMA DOES HAVE A LOSS THIS FOOTBALL SEASON.

YEAH. THANK YOU GENTLEMEN VERY MUCH APPRECIATE THAT VIC.

[Items 3A & 3B (Part 2 of 2)]

YES JOHN.

WELL, IF WE'RE WRAPPING UP, I WANT TO SAY SOMETHING BEFORE WE WRAP IT UP.

YES, SIR. TO JUST HIT A COUPLE POINTS AGAIN AND TO ASK ONE ONE MORE QUESTION TO ROGER.

SO IF I UNDERSTAND CORRECTLY, FROM WHAT WE TALKED ABOUT TODAY ON ON A 1616 CRUISE TERMINAL 16, WE'RE GOING TO SEE SOMETHING BACK HERE AT COUNCIL. PROBABLY WITHIN A MONTH, RIGHT? AND MAYBE HAVE A SPECIAL MEETING TO DISCUSS AS FAR AS THE PROPOSED LEASE OR PROPOSED AGREEMENT.

YES YES YES YES.

YEAH. WITH WITH THE MSI CONTRACT.

RIGHT. OKAY.

AND AND I IF I HEARD YOU RIGHT, ONCE THE BOARD, THE TRUSTEES APPROVE THE $7 MILLION, YOU THINK YOU'LL HAVE 90% CONSTRUCTION DRAWINGS DONE BY THE END OF THE YEAR? THAT'S WHAT WE WERE TOLD.

I MEAN, I MEAN, IT COULD BE THE THREE MONTHS.

I MEAN, YOU KNOW, IT COULD BE JANUARY, RIGHT? OKAY. THAT'S STILL OPTIMISTIC.

WELL, YOU GOT TO REALIZE IN MY OPINION.

BUT I MEAN THAT'S GREAT. OKAY.

INVOLVED IN THIS TRANSACTION FOR A LONG TIME ALREADY.

RIGHT. OKAY.

THEY'VE ALREADY AND THEN I'LL JUST TALK A LITTLE BIT ABOUT THE MASTER PLAN.

YOU KNOW, I WANT TO SEE THE HIGHEST AND BEST USE FOR THIS PROPERTY.

I THINK THERE'S TONS OF POTENTIAL DOWN THERE.

I'M 100% IN SUPPORT OF TERMINAL 16.

I MEAN, THE CRUISE BUSINESS HAS BEEN TREMENDOUS FOR GALVESTON AND FOR THE PORT.

WE KNOW IT MAKES MONEY.

WE'VE SEEN THAT.

SO YOU GOT MY SUPPORT THERE.

I'M GLAD MARIE HAS THINKS THAT I COULD BE A DEVELOPER OF A HIGH RISE CONDO ON THE PORT.

I APPRECIATE THAT, QUITE A COMPLIMENT.

I KNOW IT IS. IT IS.

AND I I SET PRETTY HIGH GOALS FOR MYSELF, SO, YOU KNOW, MAYBE IT COULD HAPPEN.

THAT'S RIGHT. YOU KNOW, I KEEP SEEING THE MASTER PLAN AND WE SEE STUFF LIKE THIS, AND WE JUST SEE A LOT OF PARKING.

AND EVEN ON THE PORTION OF PROPERTY IN THE MASTER PLAN THAT'S KIND OF SLATED FOR RETAIL AND YACHT BASIN AND THINGS LIKE THAT.

THERE'S MORE PARKING THERE.

SO I JUST WANT TO PUT THAT OUT THERE THAT WE NEED TO LOOK FOR THE HIGHEST AND BEST VALUE USE FOR THIS PROPERTY.

THE CRUISE TERMINAL. TERMINAL.

I KNOW IT'S NOT EASY, BUT IT IS THE EASIER ROUTE TO GO.

IF YOU JUST WANT CRUISE TERMINAL AND PARKING.

IT'S THE EASIER ROUTE.

THE HARDER ROUTE IS TRYING TO PARTNER AND FORM RELATIONSHIPS AND GET AGREEMENTS SIGNED ON ALL THESE DIFFERENT ENTITIES TO WORK TOGETHER TO, TO, TO REALLY ELEVATE THE HIGHEST AND BEST USE OF THIS PROPERTY.

TWO COMMENTS. WELL, I'LL FINISH, I'LL BE.

AND SO JUST THINK ABOUT THAT GOING FORWARD.

THINK ABOUT THAT IN THE MASTER PLAN.

IF YOU REALLY WANT TO LINK PIER TEN OR THIS COMMERCIAL AREA WITH DOWNTOWN, IT STARTS AT, YOU KNOW, 19. AND THERE'S GOT TO BE INTERESTING AND GOOD USES FROM 19 ALL THE WAY TO TEN TO MAKE PEOPLE KIND OF CONNECT THESE AREAS AND MAKE PEOPLE WANT TO GO THAT ROUTE.

SO PLEASE THINK ABOUT THAT AND MOVE FORWARD.

TWO THINGS. ONE, PLEASE REMEMBER THAT SURFACE PARKING IS LAND BANKING, RIGHT? WE WE WE WE RECOVER THE COST OF THAT SURFACE PARKING IN YEAR ONE IN ALMOST EVERY CASE.

SO THE FACT THAT IT'S THERE DOESN'T MEAN IT HAS TO BE THERE NEXT YEAR.

[02:10:03]

AND THAT WAS ALWAYS THE PLAN.

I MEAN, I, I'M NOT INTERESTED IN YOU KNOW, I AM INTERESTED IN THE REVENUES.

THERE'S HUGE AMOUNT OF REVENUES COMING FROM THE SURFACE PARKING WITH THE LEAST AMOUNT OF INVESTMENT.

BUT THE BOTTOM LINE IS, IS THAT'S ALL IT IS.

ANYTHING AT ANY GIVEN TIME THAT MAKES SENSE CAN BE PUT WITH THAT PARKING IS.

AND SO SECONDLY, I'M WHY DON'T WE WHY DON'T WE HAVE A I DON'T LIKE COMMITTEES OF 100 PEOPLE.

BUT WHY DON'T WE HAVE A COMMITTEE OF, SAY, FIVE PEOPLE, SOME FROM CITY COUNCIL, FROM SOME FROM THE PORT.

AND LET'S LET'S INVESTIGATE WHAT ELSE WE CAN DO DOWN THERE.

WELL, I MEAN, ROGER, I'M READY.

I'M CERTAINLY OPEN TO THAT. I MEAN, I'M READY TO APPOINT WHARF BOARD MEMBERS TO THAT COMMITTEE.

I HAVE THEM IN MIND ALREADY, BUT LET THE MAYOR AND I GET TOGETHER.

I THINK WE HAVE THAT COMMITTEE.

WE CAN KEEP THOSE IDEAS.

WANTS TO SERVE ON THAT.

THERE IS A BIGGER PICTURE.

AND SHEILA CAN ATTEST TO THIS.

WE'VE HAD A LOT OF CONVERSATIONS WITH THIRD PARTIES ABOUT THIS NOT JUST BEING ANOTHER PARKING DECK, RIGHT.

THERE'S A LOT OF THINGS THAT CAN BE AND IT CAN CAN BENEFIT EVERYBODY.

AND AND THE PART OF THAT IS GETTING ACROSS HARBORSIDE DRIVE SAFELY FOR THOSE PEOPLE CAN WALK ACROSS.

AND SO, YOU KNOW, I, YOU KNOW, I WAS I MAKE THAT SUGGESTION BECAUSE I THINK IT MAKES SENSE.

I MEAN, JUST AS LONG AS YOU DON'T HOLD MY CRUISE TERMINAL, I'M HERE NOW, TERMINAL MAYOR.

NOW GET TOGETHER. AND MARIE WANTED TO MAKE A COMMENT.

I THINK THE THE SUGGESTION YOU JUST HAD ABOUT COMING UP WITH A COMMITTEE, I MEAN, BECAUSE I HAVE IN MY DISTRICT, THE OTHER EMPTY LAND ASIDE FROM THE PORT, AND WE HAVE A LOT OF PIECES OF LAND THAT WERE BOUGHT BEFORE COVID THAT PEOPLE SAT ON WITH THE INVENTORY AND THE COST AND WHATNOT.

AND WHEN I GO OUT TO THE HOMEOWNERS NOW, I TALK TO THE DEVELOPERS, I TALKED TO THE HOMEOWNERS.

WHAT WOULD YOU LIKE TO SEE? THEY'RE SAYING THEY'RE GOING TO DO A HOTEL OR A CONDO.

WHICH WOULD YOU PREFER? AND I JUST THINK IT MAKES IT SO MUCH BETTER WHEN WE WORK TOGETHER.

BUT THAT WASN'T MY ORIGINAL COMMENT, BUT I LOVE YOUR IDEA OF THE COMMITTEE, AND I WOULD LOVE TO SERVE ON IT.

BUT HOW MUCH DOES THE CITY GET ANNUALLY FROM THE PORT NOW? I THINK YEAR TO DATE IT'S BEEN ABOUT CLOSE TO 1,000,003.

AND I THINK WHENEVER BECAUSE YOU REMEMBER NOW SOME OF THE NEW FEES KICK IN WITH WHEN THE JUBILEE GETS HERE.

SO THAT THAT STARTS THE FAUCET ON ALL OF CARNIVAL'S CONTRIBUTIONS TO THE PASSENGER FEES.

AND THEN OBVIOUSLY MY ESTIMATES ARE ULTIMATELY WHEN EVERYTHING'S UP AND RUNNING BETWEEN 3 AND $4 MILLION A YEAR.

RIGHT. AND THAT'S UP FROM THE PAYMENT IN LIEU OF TAXES OF LESS THAN 200,000.

EXACTLY. CORRECT.

AND I JUST HAVE TO SAY BRAVO.

WELL, I CAN TELL YOU THE MAYOR IS A SQUEAKY WHEEL ON THIS, AND HE'S I KNOW I'M ALWAYS ON THEIR CASE, AND I WAS GOING TO ALREADY ASK, BUT THEY LAUGHED OF THE THE TEXAS USS TEXAS GROUP.

AND CAN WE GET A DOLLAR OF THAT? BECAUSE WE KNOW THAT QUESTION WILL COME UP EVENTUALLY.

BUT I MEAN, I JUST THINK AS EVERYONE AS ECHOED HERE, I ALWAYS LOVE IT.

I MAY NOT GO TO YOUR WORF MEETINGS, BUT I ALWAYS WATCH THEM.

AND I CALL IT YOUR KUMBAYA SECTION OF AT THE END WHEN EVERYBODY TALKS ABOUT WHAT WAS GOOD.

I THINK WE SHOULD START DOING THAT AT COUNCIL MEETINGS.

THAT IDEA YOU KNOW, I JUST WANT TO SAY BRAVO FOR WHAT YOU'VE ACHIEVED AND BRAVO FOR THIS MEETING.

I HOPE WE DO IT FOR SIX TIMES A YEAR WHEN WE WORK TOGETHER, WHERE, AS SHARON ALWAYS SAYS, WE'RE SO MUCH MORE SUCCESSFUL. SO THANK YOU.

I THINK IT'S BEEN A GREAT MEETING.

I APPRECIATE EVERYBODY HERE BEFORE WE ADJOURN OUR MEETINGS.

VIC, I'LL LET YOU ADJOURN YOURS, AND THEN WE'LL ADJOURN OURS.

BUT I WANTED TO SAY ONE THING.

I, I REALLY I THINK THIS WAS VERY, VERY PRODUCTIVE FOR THE ENTIRE COMMUNITY VISITING TODAY.

AND THE OTHER THING THAT STRUCK ME AS WE TALKED HERE, I CAN'T BELIEVE HOW WISE COUNCIL WAS IN APPOINTING SUCH GREAT PARK BOARD REPRESENTATIVES. WE'VE GOT SOME SOME BOARD REPRESENTATIVES.

EXCUSE ME. WE'VE GOT SOME.

GREAT. THANK YOU FOR YOUR SERVICE.

WE'VE GOT SOME GREAT PEOPLE THAT ARE REPRESENTING NOT ONLY THE CITY GOVERNMENT AND THE PORT, BUT ALSO THE COMMUNITY.

THANK YOU FOR YOUR SERVICE ON THAT.

BACK TO ALL OF YOU. ABSOLUTELY.

[02:15:02]

SO CONGRATULATIONS ON THAT.

THERE YOU GO, VIC.

WELL, MR. MAYOR AND COUNCIL, THIS IS HOPEFULLY THE FIRST OF MANY OF THESE BECAUSE I'M IN IN MY REAL LIFE, IN MY REAL JOB, I FIGURED THAT EARLY ON, COMMUNICATION IS THE MOST IMPORTANT THING.

AND WE HAVE STRIVED REAL HARD AT OUR BANK TO COMMUNICATE VERY EFFECTIVELY.

AND I THINK BY DOING THIS AND GETTING THE PIECES IN PLACE IN THE RIGHT, TIMELY MANNER MAKES EVERYTHING A LOT SMOOTHER.

AND BECAUSE AT THE END OF THE DAY, WE'RE ALL IN THIS TO MAKE THE COMMUNITY BETTER.

THAT'S EXACTLY. WE'RE ALL IN THE SAME BOAT, RIGHT? WE'RE ALL IN THE SAME BOAT.

IF YOU'D LIKE TO ADJOURN YOUR MEETING, OUR MEETING IS ADJOURNED.

IT'S A CRUCIAL COUNCIL. WE HAVE GONE THROUGH ALL THE AGENDA ITEMS. WE ARE ADJOURNED. THANK YOU, THANK YOU.

* This transcript was compiled from uncorrected Closed Captioning.