[00:00:03]
GOOD AFTERNOON, COUNCIL, AND GOOD AFTERNOON, WHARVES BOARD.
[1. DECLARATION OF A QUORUM AND CALL MEETING TO ORDER]
IT'S GLAD TO GREET EVERYBODY THIS AFTERNOON.WE HAVE A JOINT MEETING OF THE WHARVES BOARD AND CITY COUNCIL, A WORKSHOP.
WE DO HAVE A QUORUM HERE, BUT IF WE COULD PLEASE, JANELLE, I'D LIKE TO HAVE A ROLL CALL.
PRESENT. COUNCIL MEMBER FINKLEY.
PRESENT. COUNCIL MEMBER BOUVIER HERE.
COUNCIL MEMBER LISTOWSKI HERE.
ALL RIGHT. WE HAVE ALL OF OUR COUNCIL HERE.
I'M GOING TO TURN IT OVER TO CHAIRPERSON PEARSON.
THANK YOU, MAYOR ANGIE, CAN WE GET A ROLL CALL, PLEASE? YES, SIR. CHAIRMAN VIC PEARSON, PRESENT JEFF PATTERSON HERE.
TRUSTEE MAYOR CRAIG BROWN HERE.
TRUSTEE SHEILA LISTOWSKI HERE.
AND WE HAVE ROGER REES AND ANTHONY BROWN.
OKAY. WE HAVE ALL MEMBERS OF THE BOARD HERE.
WHAT I'D LIKE TO DO IF IT MET THE COUNCIL'S APPROVAL AND, THE WHARVES BOARD APPROVAL, I'D LIKE, AS WE READ THE DISCUSSION ITEMS, WE HAVE THREE ITEMS ON OUR AGENDA.
I WAS GOING TO HAVE JANELLE READ ALL THREE OF THEM AT ONE TIME.
YES, SIR. MAYOR, BEFORE WE DO THAT, CAN I SEE IF WE HAVE ANY CONFLICTS OF INTEREST? OH. BY ALL MEANS.
YES, SIR. OKAY, I SEE NONE AND ANY PUBLIC COMMENTS.
DID ANYBODY SIGN UP? OKAY, GOOD.
[3. DISCUSSION ITEMS]
VERY GOOD. WE'LL MOVE RIGHT INTO OUR AGENDA ITEMS. JANELLE, IF YOU COULD READ THREE A, B AND C PLEASE.THREE B DISCUSSION OF FUNDING FOR CRUISE TERMINAL 16 AND THREE C DISCUSSION OF POSSIBLE CHANGES TO HARBORSIDE AND THE PORT FOR THE MANAGEMENT OF CRUISE RELATED TRAFFIC. I WANTED TO, VIC, I WANT TO THANK THE WHARVES BOARD FOR BEING HERE TODAY.
THIS IS SOMETHING THAT, I HAD SOME QUESTIONS ABOUT WHY WE'RE MEETING TODAY.
AND, AS WE KNOW, THE WHARVES BOARD HAS BEEN IN NEGOTIATIONS WITH MSC FOR QUITE A LONG TIME FOR A CRUISE TERMINAL AT PIER 16. AND, THOSE DISCUSSIONS HAVE CULMINATED IN COMING TOGETHER WITH A CONTRACT WITH MSC.
COUNCIL. AS YOU KNOW, THIS ITEM WILL BE COMING BACK AT SOME POINT IN THE FUTURE, FOR OUR APPROVAL FOR, BONDING AND APPROVAL OF FINANCING FOR THIS PARTICULAR PROJECT.
AND SO I WANT TO THANK THE WHARVES BOARD FOR KEEPING THIS IN THE LOOP, BRINGING THIS FORWARD, AND PROVIDING THE FORUM FOR US TO ANSWER QUESTIONS AND UNDERSTAND THIS PROJECT A LITTLE BIT BETTER.
VIC. WELL, MR. MAYOR, ON NOVEMBER 2ND, WE WERE HERE AND WE SAID THAT WE WANTED TO DEVELOP A BETTER RELATIONSHIP WITH THE CITY, AND WE TALKED ABOUT SOME OF THE PROJECTS, AND THIS IS A CRITICAL ONE, AND WE WANT TO GET THE CITY'S INPUT.
SO WE'RE LOOKING FORWARD TO TODAY'S DISCUSSION.
WELL, I'LL TURN IT OVER MAYBE.
YES, SIR. CAN I SIT UP THERE? ROGER, YOU WANT TO COME UP HERE AND HAVE A SEAT? A FAKE KNEE SO THAT.
AND JUST DON'T BUMP KNEES ON THERE.
GOOD AFTERNOON. AFTER, OVER A YEAR, REALLY, OF NEGOTIATIONS ON THIS CONTRACT, WE FINALLY HAVE COME TO, AN OPERATING AGREEMENT WITH MSC.
OBVIOUSLY, OUR BOARD HAS NOT APPROVED IT YET.
WE WANTED TO GIVE CITY COUNCIL THE OPPORTUNITY TO REVIEW THE CONTRACT, ASK QUESTIONS.
AND SO THAT'S KIND OF WHAT WE'RE HERE TODAY TO TALK ABOUT.
THE SUBJECT MATTER OBVIOUSLY IS, CT 16, CRUISE TERMINAL 16, WHICH IS THE, CURRENTLY THE HOME OF DEL MONTE, FRESH FRUIT. YOU KNOW, SEVERAL YEARS AGO, JUST A LITTLE HISTORY.
[00:05:03]
SEVERAL YEARS AGO, DEL MONTE CAME TO US AND SAID, WE'D LIKE TO WE'VE SEEN YOUR MASTER PLAN, AND WE SEE THAT, DEL MONTE IS NOT INCLUDED IN THAT. AND THE ONLY REASON, BECAUSE DEL MONTE IS CHANGING AND GROWING, AND THEY'RE NOW IN THE CONTAINER BUSINESS MORE SO THAN THEY EVER WERE BEFORE.AND THAT LOCATION JUST CANNOT SATISFY THAT.
AND SO, YOU KNOW, WE OFFERED THEM OTHER LOCATIONS ON THE PORT, MORE, YOU KNOW, MORE SPECIFICALLY ON THE WEST END AND, YOU KNOW, JUST WITH THE WEST END AND, THE, THE, THE FERTILIZER BUSINESS THERE.
THEY WERE NOT UNCOMFORTABLE WITH, YOU KNOW, PARTICULATE MATTER THAT MAY BE AROUND.
AND, YOU KNOW, BECAUSE MOST OF THESE, THESE, THESE CONTAINERS OR REFRIGERATED CONTAINERS, SO, AND THEY HAVE THEIR OWN AIR SYSTEMS, SO THEY, THEY SUCK AIR IN FROM THE OUTSIDE.
SO IT DIDN'T MAKE ANY SENSE. SO THEY WHAT THEY SAID WAS, WE'LL WE WANT TO GET OUT OF THIS THING.
WE WANT TO GIVE YOU GUYS TWO YEARS NOTICE TO GET OUT.
AND SO WE SAID BASICALLY THEY HAD TWO, FIVE YEAR OPTIONS AND WE SAID, OKAY, WE'LL GIVE YOU THE WE'LL LET YOU LET YOU HAVE THE TWO YEARS NOTICE AND WE WON'T BACK THE TWO FIVE YEAR OPTIONS.
WE DID THAT THE PAPERWORK AND THEY EVERYBODY SIGNED.
SO THE REALITY IS WHERE IT SITS TODAY.
WE'RE HAVING ONGOING CONVERSATIONS WITH, DEL MONTE ABOUT VACATING THE PREMISES.
YOU KNOW, THEY CAME TO OUR, OUR LAST MEETING.
THEY'RE MOVING DOWN TO FREEPORT.
AND SO, YOU KNOW, THEY'VE ASKED FOR A LITTLE BIT OF EXTRA TIME.
WE'VE BASICALLY SAID, LET'S TALK ABOUT IT.
AND WE SAID, WHAT, WHAT CAN WE DO? IN OTHER WORDS, CAN WE COEXIST FOR A PERIOD OF TIME SO YOU GUYS CAN GET MOVED.
AND THEY CAME AND ASK US JUST RECENTLY FOR SIX MONTHS AND WE CAN'T DO THAT.
IT DOESN'T WORK FOR OUR TIME FRAMES.
SO WHAT WE BASICALLY SAID WAS WE CAN GIVE YOU THREE MONTHS.
MAYBE I CAN JUST SHOW YOU UP HERE JUST TO BE ON THE MAP UP HERE.
WE CAN. YOU CAN TAKE POSSESSION.
THIS WILL BE THE AREA WHERE THE CUSTOMS AND BORDER PATROL IS.
SIX MONTHS. YOU SAID SIX MONTHS.
I'M SORRY. SIX. SIX DAYS AT THE END OF 60 DAYS.
60 DAYS. AND SO THEN AT THE END OF THE NEXT 30 DAYS, WE'LL HAVE TO GET ACCESS IN HERE.
AND SO THEN WE'LL START IN HERE WITH THE PARKING DECK.
AND AND SO ONE OF THE THINGS THAT, WE'RE MOVING FORWARD WITH ON ALL THE DESIGN AND, AND CONSTRUCTION OF AND PLANS FOR THIS IS A PARKING DECK, THERE'S YOU'LL SEE THAT THERE'S, I, WE WE GAVE YOU A PACKAGE TODAY THAT HAS SOME REFERENCES TO ALL THAT IN THERE.
SO THAT'S KIND OF A LITTLE HISTORY WHERE WE ARE.
THE CONTRACT ITSELF IS AN OPERATING AGREEMENT.
HAS A COUPLE OF RIDERS IN IT BECAUSE WE HAVE CONSTRUCTION, IT'S OUR RESPONSIBILITY.
AND THERE'S A, THE CONSTRUCTION RIDER BASICALLY KIND OF OUTLINES OUR OBLIGATIONS, PERIOD.
SO, I MEAN, I THINK, AND TONY CAN ATTEST TO THIS.
SO I THINK THAT'S KIND OF WHERE IT'S AT.
IT'S A SIX STORY PARKING DECK.
IF YOU WANT, YOU CAN LOOK AT IT.
YOU CAN SEE IN THESE, THESE DRAWINGS WE'VE HANDED OUT.
THIS IS A THIS IS A NUT IN A NUT SHELL.
THIS IS THE PROPERTY THAT WE'RE TALKING ABOUT.
THIS RIGHT HERE IS THE PARKING DECK.
WHAT YOU'RE GOING TO SEE HERE IS, IN BETWEEN THOSE TWO BUILDINGS IS WHAT WE CALL, THE VERTICAL CORE OF THE BUILDINGS, WHICH WILL HOUSE, YOU CAN LOOK TO THE NEXT PAGE TO SEE A BIT MORE, A LITTLE BIT MORE DETAIL, BUT IT WILL HOUSE ELEVATORS, ESCALATORS, POTENTIALLY A RAMP IN THERE TO ALLOW,
[00:10:01]
THE CUSTOMERS, THE CUSTOMERS, PASSENGERS TO GO UP IN THE TERMINAL AND, AND GO UP THOSE STAIRS OR ELEVATORS OR WHATEVER TO GET TO A GANGWAY OR WALKWAY THAT WE BUILT ALONG THE BACK OF THE, OF THE TERMINAL.SO CUSTOMERS WILL COME IN THIS WAY, MOVE, WEST TO EAST THROUGH THE TERMINAL TILL YOU GET TO THE AREA, WHICH IS WHAT I REFER TO AS THE VERTICAL CORE.
AND THEN RIGHT THERE, PASSENGERS WILL GO UP ELEVATORS, ESCALATORS, AND WE DON'T HAVE A RAMP PLANNED RIGHT NOW, BUT I'M, I'M, WE'RE WE'RE LOOKING AT A RAMP IN THERE JUST BECAUSE IT'S IT'S, NON-MECHANICAL.
AND, YOU KNOW, WE'RE LOOKING FOR JUST IN CASE WE HAVE MECHANICAL ISSUES, WE CAN STILL GET PEOPLE ON UP TO THE SECOND FLOOR, AND THEN THE SECOND FLOOR IS THE ONLY THING ON THE SECOND FLOOR WILL BE A WALKWAY WHICH GOES ALONG THE THE NORTH SIDE OF THE BUILDING.
THAT'S WHERE THE PASSENGERS WILL GET ON.
THERE'LL BE TWO GANGWAYS OUT THERE.
THE OPERATING AGREEMENT GOES INTO A LOT OF DETAIL ABOUT, GUARANTEES.
WE DO HAVE A GUARANTEE FROM MISS, MSC, WHICH IS MEDITERRANEAN SHIPPING COMPANY, WHICH IS A THE THIRD LARGEST CRUISE LINE IN THE WORLD AND BASICALLY THE LARGEST CONTAINER CARRIER IN THE WORLD.
IT'S A PRIVATELY HELD COMPANY OUT OF, ITALY WITH THEIR HEADQUARTERS IN GENEVA.
SO YOU HAVE YOU HAVE TO KIND OF WORK WITH THOSE HOURS.
SO THAT'S REALLY, THE TERMINAL ITSELF WE HAVE, YOU CAN SEE WE, WE HAVE A GUARANTEE, A MINIMUM GUARANTEE OF 500,000 PASSENGER MOVEMENTS THE FIRST YEAR, WHICH WHAT THAT MEANS IS, IS THAT WHETHER OR NOT THEY ARE ABLE TO ACHIEVE THAT WITH THE NUMBER OF SHIPS THAT THEY BRING IN, THEY WILL PAY US FOR 500,000 PASSENGER MOVEMENTS.
SO THERE'S TWO, TWO, REVENUE TRANSACTIONS FOR EVERY PASSAGE.
PASSENGER. AND SO THEY'RE GUARANTEED GUARANTEEING US THE FIRST YEAR, 500,000 OF THOSE MOVEMENTS.
AND THEN THE SECOND YEAR THEY WILL GUARANTEE US 600,000 MOVEMENTS A YEAR.
SO WHAT THAT DOES IS THAT THAT NUMBER REALLY GIVES US, THE REVENUES AS WELL AS THE CAPITAL COST RECOVERY DOLLARS TO PAY THE, TO PAY THE, BOND FINANCING AND ALSO ALLOW THE PORT TO RECEIVE THE REVENUES THAT WE WOULD ORDINARILY RECEIVE FROM PASSENGERS, OUR PASSENGER MOVEMENTS, IN THE CONTRACT, YOU KNOW, WE RECEIVE $12 PER PASSENGER MOVEMENT.
WE BUNDLE ALL ALL OUR REVENUE INTO ONE NUMBER SO THAT THEY CAN THEY CAN CHARGE FOR THAT.
AND THEN IN ADDITION TO THAT, THERE WILL BE A CAPITAL COST RECOVERY NUMBER, WHICH IS BASED ON 83% OF THE OF THE COST OF THE TERMINAL.
AND RIGHT NOW THAT'S ABOUT, WE'RE ASSUMING IT'S SOMEWHERE RIGHT AROUND, 90 MILLION.
YOU KNOW, ACTUALLY IT'S ABOUT 82 MILLION.
THE PORT HAS THE OBLIGATION TO PROVIDE THE MARINE WORK, WHICH IS BASICALLY ALLOWING FOR THE DOCKS TO BE ABLE TO HANDLE THESE SHIPS. WE'RE DESIGNING THE IT'S BEING DESIGNED FOR THE LARGEST SHIP THAT MSC HAS, WHICH IS NOT WHAT WILL INITIALLY BE HERE, BUT IT'S CALLED THE WORLD CLASS SHIP.
SO THEY'LL PAY US $12 PER PASSENGER TURN.
AND THEN BASED ON THE ULTIMATE FINANCING, THE PORT IS GOING TO BE RESPONSIBLE FOR THE PASSENGER BOARDING BRIDGES AND THE, THE MARINE WORK, AS I SAID A MINUTE AGO.
SO THE MARINE WORK MEANS GETTING THE BERTH IN GOOD SHAPE FOR IT TO BE ABLE TO HANDLE THESE SHIPS.
AND THIS MEANS FENDERS AND BOLLARDS AND ANY, ANY SITUATIONS WE WOULD HAVE WITH THE WITH THE PILINGS THAT ARE ON THE, ON THE DOCK ITSELF.
THAT'S 18 APPROXIMATELY 18% OF THE COST TODAY.
THAT AND THE AND THE BOARDING BRIDGES AND YOUR PORTION OF IT.
[00:15:07]
AND WE HAVE SOME, SURFACE PARKING OURSELVES.BUT THIS IS EXCLUSIVE OF A PARKING GARAGE.
IT ALL RELATES TO WHATEVER TRANSACTION WE DECIDE THAT TURNS OUT TO BE.
AND THAT JUST JUST FOR FOR INFORMATION THAT'S APPROXIMATELY $42 MILLION FOR FOR A PARKING DECK THAT WILL, WILL GIVE US 1600 RIGHT AT 1600 PARKING SPACES.
AND THIS IS THIS IS OUR RESPONSIBILITY.
AND THIS IS WE INTEND TO DO THIS AGAIN HERE WITH THOSE ADDITIONAL 700 SPACES.
SO AND I'LL GET BACK TO THE MARINE WORK.
WE HAVE HAD SOME, ANALYSIS ON THE MARINE.
WE'RE WAITING AND ACTUALLY A FORMALIZED REPORT ON THAT.
BUT WE UNDERSTAND AT THIS STAGE OF THE GAME, THERE'S A COUPLE OF PILINGS THAT MIGHT NEED TO BE REPLACED, AND WE KNOW WE'LL BE PUTTING IN HIGH WIND BOLLARDS AND FENDERS TO HANDLE THESE SHIPS.
WE WE'VE GOT BUDGETED RIGHT AROUND $5 MILLION FOR THIS RIGHT NOW.
THOSE IF THIS IS ALL THAT WE HAVE TO DO, WE SHOULD BE PRETTY GOOD.
I MEAN, WE'LL PROBABLY BE UNDER THAT, THE PASSENGER BOARDING BRIDGES.
WE, IF YOU REMEMBER, WE HAVE TO PUT PASSENGER BOARDING BRIDGES IN THERE, NOT ONLY FOR MSC.
INITIALLY, MSC WILL BRING IN ONE SHIP YEAR ROUND AND, YOU KNOW, WHICH IS 52 TURNS AND, YOU KNOW, AND BUT EVEN THOUGH THEY'LL ONLY, THE ONLY EVER OFF OF ONE SHIP, THEY COULD GET ABOUT 300,000 TURNS OFF OF ONE SHIP.
SO, YOU KNOW, OBVIOUSLY THE GUARANTEE IN THERE IS FOR, FOR MORE THAN THAT, BUT THEY'LL, THEY'LL PAY THAT THAT THEY'LL PAY THAT TO US FOR ALL THE, PASSENGER MOVING. MOVEMENTS THAT WERE SHORT OF THE SIX 600,000.
I MEAN, MY MY GOAL, MY JOB IS TO FILL UP THAT TERMINAL.
WE HAVE A COUPLE OTHER CRUISE LINES RIGHT NOW THAT ARE READY TO COME IN.
NORWEGIAN'S HERE RIGHT NOW WITH THE WITH THEIR PRIMA, SHIP.
THEY'RE RUNNING OUT OF CRUISE TERMINAL 28, AND THEN WE'LL RUN OUT ON THE WEEKENDS.
ONCE THE TERMINALS COMPLETE AND THAT GUARANTEE FOR TO MSC GETS REDUCED.
AND SO, YOU KNOW, THAT'S THE THAT'S KIND OF THE MAKEUP OF THE REVENUE.
AND THEN THE CAPITAL COST RECOVERY, AS I MENTIONED.
WE'LL HAVE ABOUT 17% THAT WE WILL THE PORT WILL FUND OUT OF ITS OWN POCKET, AND THEN THE BALANCE OF THAT WILL BE, PAYABLE MORE THAN LIKELY OVER A 2 TO 2 TO ALMOST MAYBE A THREE YEAR PERIOD BECAUSE OF HOW THE CONSTRUCTION IS SCHEDULED.
SCHEDULED DATE IS TO BE COMPLETED BY NOVEMBER 5TH OF 2025.
DID YOU HAVE? IS THAT? IS THAT A RAISED HAND? OKAY.
NOVEMBER 9TH OF 2025 IS IS THE DATE OF THE FIRST SHIP WILL COME IN.
AND, YOU KNOW, SO WHAT WHAT THE CAPITAL COST RECOVERY RELATES TO IS, THEY WILL REIMBURSE THE PORT OVER THE FIRST 20 YEARS FOR 83% OF THE, EVERYTHING OF THE OF THE OTHER NON WHAT WE'RE PAYING FOR, RIGHT? IN OTHER WORDS, THE PASSENGER BOARDING BRIDGES.
YOU KNOW, WE ARE IN THE DESIGN ON THOSE AT THIS STAGE.
ON WHAT KIND OF BRIDGE THAT WILL BE.
THERE'S A COUPLE OF BRIDGES, A COUPLE TYPES OF BRIDGES.
IT'S ONE EXTENDING BRIDGE THAT GOES OUT FROM THE BUILDING TO THE SHIP.
WE THINK BECAUSE THE BERTH IS SO WIDE ON THIS, WE MAY NOT BE ABLE TO USE THOSE.
WE'LL HAVE TO USE ONE THAT HAS ITS OWN STRUCTURE.
SO WE'RE BUDGETING ABOUT 10 MILLION, FOR TWO OF THESE, TO GO IN THERE.
AND THESE WOULD THESE ARE THE KIND OF ZIGZAG BACK AND FORTH CAN GO BOTH OF THEM GO UP AND DOWN.
SO, SO IT'LL FIT ANY SIZE SHIP.
[00:20:02]
AND THE OTHER PIECE OF THAT IS THE LOCATION OF THE DOOR ON THE SHIPS.SO THEY'RE NOT EVERY SHIP HAS THE DOOR IN THE SAME LOCATION.
SO YOU HAVE TO BE ABLE TO PROVIDE A GANGWAY THAT MOVES, YOU KNOW, EAST AND WEST IN THIS CASE.
ROGER. YOU MENTIONED 42 MILLION FOR THE PARKING GARAGE APPROXIMATELY.
RIGHT. WHAT'S YOUR PROJECTED REVENUE FOR THAT, GARAGE, HAVE YOU? WELL, YEAH, WE DO.
I THINK OUR PROJECTED REVENUE IS, I'LL HAVE MY GLASSES ON, BUT, IT'S ABOUT 9 MILLION A YEAR.
9 MILLION A YEAR WITH FOR FULL YEAR OPERATIONS, RIGHT? YEAH. RIGHT. AND SO, AND THAT GARAGE, AS I MENTIONED, WE WE SIX STORIES, THE, THE GROUND FLOOR THAT WILL HANDLE ALL THE GROUND TRANSPORTATION. SO BUSSES, INDIVIDUAL CARS WILL ALL COME IN UNDERNEATH THE PARKING DECK.
WHAT PERCENTAGE OF YOUR HOW MANY CARS ARE WE TALKING ABOUT, AND WHAT PERCENTAGE OF CAPACITY IS ACTUALLY IN AN AUTOMOBILE THAT NEEDS TO PARK VERSUS BUSSES, AIRLINE TRANSPORTATION, THAT KIND OF THING? WELL, YOU KNOW, RIGHT NOW WE WE'RE WE'RE WE DON'T KNOW WHAT THE COMPETITORS ARE, BUT, I MEAN, WE'RE WE'RE PARKING CLOSE TO 70% OF ALL THE CARS THAT COME INTO THE PORT. NO, I MEANT IF YOU GOT A 7000 PASSENGER CRUISE SHIP, WHAT PERCENTAGE OF THAT IS GOING TO BE CARS? AND I APPRECIATE THAT YOU'RE DOING 70% OF OF THAT TRAFFIC ABOUT EVERY FOR EVERY SEVEN PASSENGERS YOU GET ONE CAR AND THAT'S, THAT'S OUR THAT'S HISTORICALLY WHAT WE'VE GOT HERE.
THAT'S THAT'S WHAT WE USE AS THE GAUGE.
YOU KNOW, FOR EVERY SEVEN PASSENGERS YOU YOU PARK WE PARK ONE CAR.
THAT DOESN'T MEAN THAT'S THE TOTAL NUMBER OF CARS BECAUSE THEY MAY GO TO ANOTHER, COMPETITOR.
WELL, IF THAT RATE THAT YOU'RE 2300 SLOTS ARE ENOUGH TO HANDLE.
OH, YEAH. YEAH. YOU ONLY NEED ABOUT MAYBE TWO SHIPS.
OH, PLEASE. DO YOU HAVE A TRAFFIC IMPACT STUDY RELATED TO THIS PROJECT? WE HAVE ONE ON. IT'S PART OF OUR CONTRACT.
SO WE HAVE A TRAFFIC IMPACT IMPACT STUDY.
THERE'S A COUPLE OF OTHER THINGS, TOO, THAT, YOU KNOW, THE CITY JUST RECEIVED SOME GRANT MONEY FOR, INTERSECTION 16 OR 16TH AND HARBORSIDE DRIVE. AND SO THAT'S THAT'S WHERE THE ENTRANCE WOULD BE TO THE TERMINAL.
SO WE'RE HOPING THAT WE CAN GET TOGETHER WITH THE CITY AND TALK ABOUT THAT.
JIM, YOU HAD YOUR HAND UP? YEAH, I JUST WANTED TO.
THE BOTTOM LINE IS, WE'RE GOING TO BE COMING TO YOU GUYS FOR AUTHORIZATION.
HOW MUCH IS THE TERMINAL? WE GOT THE 42 MILLION FOR THE PARKING IS THE ESTIMATE.
WHAT'S THE WHAT'S THE TERMINAL PART? HOW MUCH IS THE TERMINAL ITSELF? THE TERMINAL ITSELF IS, PROBABLY RIGHT AT 100 TOTAL.
YOU'RE TALKING ABOUT WHAT? THE GANG. THE GANG.
THE PORTION OF THAT PAID BY YOU, THOUGH, RIGHT.
THEY'RE GOING TO REIMBURSE IT FOR 83% OF 86.
JIM, JIM'S QUESTION WAS, HOW MUCH ARE YOU GOING TO COME BACK TO US AND ASK FOR IN A BOND? WHAT'S THE BOTTOM? WHAT ARE WE GOING TO ASK THE CITY FOR, AND WHAT TYPE OF DEBT ARE WE LOOKING AT TODAY? I THINK TODAY WE'RE LOOKING AT $150 MILLION, 150 THAT INCLUDE THE GARAGE.
OKAY. THERE'S FOUR COMPONENTS TO THAT.
THE PART THAT THE PORT IS RESPONSIBLE FOR THE WATER, THE BRIDGES, THE.
UNDERGROUND AND UNDERWATER WORK IS NOT SUBJECT TO REIMBURSEMENT.
IT'S THE PARKING GARAGE, AND IT'S THE CLOSING COST.
LAST TIME WE CAPITALIZED, WE DIDN'T.
I THINK THIS TRANSACTION WE'RE LOOKING AT ROLLING ALL THAT INTO ONE REQUEST.
SO WE'RE LOOKING AT $150 MILLION.
WOULD YOU LOOK AT THE MINIMUM GUARANTEES? MSC IS ON THE HOOK, AS ROGER SAID, FOR TWO TWO COMPONENTS.
ONE IS THEY'RE GOING TO PAY $12 A MOVEMENT.
AND THAT'S GOING TO GENERATE ABOUT $7.2 MILLION A YEAR.
AND THEN THEY'RE GOING TO PAY A COMPONENT FOR THE COST RECOVERY, CAPITAL RECOVERY.
AND THEN THESE ARE ALL ESTIMATES. THIS IS THE BEST WE KNOW TODAY.
AND THAT THAT'S ABOUT, $5 MILLION.
SO IN ROUND NUMBER, YOU GOT ABOUT $13 MILLION IN MINIMUM GUARANTEED COMING IN FROM MSC.
DEBT SERVICE ON $150 MILLION 20 YEARS.
[00:25:04]
TODAY'S RATE.WELL, THEN YOU GOT THE PARKING GARAGE ON TOP OF THAT.
AND ROGER SAID GARAGES IN THAT ONE.
HE'S TALKING ABOUT REVENUE. THE REVENUE FROM REVENUE FROM THE PARKING GARAGE.
ROGER ESTIMATES CONSERVATIVELY 9 MILLION.
THAT'S GROSS DOLLARS. I'M ASSUMING THAT'S MAYBE 7 MILLION.
DOESN'T COST MUCH TO OPERATE ITS EQUIPMENT.
NOT A LOT OF PEOPLE. SO WE'VE GOT POTENTIALLY 20 MILLION COMING IN.
AND THAT 11 JIM IS IS BASED UPON THE 150.
THAT'S CORRECT, THAT'S CORRECT.
SO WE FIND A PARTNER FOR THE GARAGE.
IN MY OPINION, WE'LL NEED TO JUST BE THE LAST THAT THE PORT CAN AFFORD FOR THE NEXT SHORT TERM.
WE NEED TO ADD RESERVES THAT THESE CONTRACTS ARE GOOD.
TONY'S DONE A GOOD JOB WITH ROGER OF.
YOU KNOW, WE'VE GOT LOSS OF, INCOME, BUSINESS INTERRUPTION INSURANCE.
I'VE NOT HAD GOOD LUCK WITH THAT, BUT WE HAVE IT.
BUT IF YOU HAVE ANOTHER COVID OR ANOTHER EVENT LIKE THAT WHERE THERE'S ZERO INCOME COMING IN.
SO WE'RE GOING. THERE ARE SOME CAVEATS TO THAT.
I MEAN, AND I MEAN, AND WE SPENT A LOT OF TIME PUTTING THESE IN PLACE.
SO, YOU KNOW, IF COVID COMES THEN THERE CAN BE AN INTERRUPTION.
THEY CAN STOP PAYING AFTER WAS IT TONY? YOU YOU REMEMBER PAYMENTS? YEAH. THE DEBT SERVICE ARE SUSPENDED AND FORCE MAJEURE EVENT FOR THE FIRST 90 DAYS, AND THEN THEY THEY RESUME, THEY PAY THEIR DEBT SERVICE LIKE THEY WOULD FOR PHASE 91 THROUGH 365.
NOW, WHEN THE FORCE MAJEURE ENDS, THE COST RECOVERY FREE IS RECALCULATED AND INCREASED SO THAT THE TOTAL AMOUNT OF THE DEBT IS STILL RECOVERED DURING THAT 20 YEAR.
YEAH. ANYWAY, MY POINT BEING IS WE'RE GOING TO BE A LITTLE MORE CONSERVATIVE GOING FORWARD.
CAPITAL PROJECTS WILL PRETTY MUCH BE PAY AS YOU GO, AND WE'RE GOING TO HAVE TO BUILD UP IN AT LEAST INTERNALLY, RESERVE SOME MORE FUND BALANCE TO BE ABLE TO HANDLE WORST CASE, YOU KNOW, WORST CASE IS MINIMUM.
I THINK ROGER IS VERY COMFORTABLE WITH NORWEGIAN AND OTHER CRUISE LINES COMING THROUGH.
THOSE NUMBERS ARE GOING TO GO LIKE THIS, RIGHT? YEAH. AND GOING TO BE MORE THAN THE MINIMUMS. SO OKAY. SO TWO QUESTIONS.
ONE I MEAN YEAH I MEAN HAVING A $10 MILLION A YEAR CUSHION IS NOT NOT SO BAD.
HOW CONFIDENT ARE YOU ABOUT THE COST? I MEAN, YOU HAVE A YOU HAVE A C'MERE, C'MERE, C'MERE CONTRACTOR HERE.
DO YOU HAVE THAT AGREEMENT YET? BECAUSE, PRETTY MUCH.
I MEAN, THE AGREEMENT IS, AND TONY, I THINK WE JUST WE JUST SENT OUT ANOTHER, ADDENDUM TO THAT WHICH TIES THAT INTO, TONY, COULD YOU COME A LITTLE MORE FORWARD SO WE CAN GET YOU ON THE AUDIO? I THINK ANSWER THE QUESTION.
WE HAVE A CMR, BUT THE PRICE BECOMES FIXED WHEN THEY GIVE US A GUARANTEED MAXIMUM PRICE.
THAT'S THAT'S WHAT I'M LOOKING FOR HERE.
I HAVE SOME NOTES FROM OUR PREVIOUS MEETING ON NOVEMBER 1ST.
OKAY. CAN YOU HEAR ME NOW, MARIE? GO AHEAD AND ANSWER THAT.
WELL, WHAT I WAS SAYING WAS THAT UNDER THE CMR CONTRACT, CONSTRUCTION MANAGER AT RISK AGREEMENT, ONCE THE DESIGN PLANS ARE FINALIZED, WHICH SHOULD BE IN THE NEXT SEVERAL MONTHS, I BELIEVE, THEN THEY WILL.
THE CONTRACTOR, HENSEL PHELPS, WILL GIVE A GUARANTEED MAXIMUM PRICE.
WELL, I'M ASSUMING THAT YOU'RE GOING TO KNOW THAT BEFORE YOU COME ASK US FOR A BOND.
YES. IT SEEMS SEEMS LIKE IT SEEMS LIKE.
THEY I MEAN, THEY DON'T SEE MUCH DIFFERENCE.
IN ONE OF THE OTHER THINGS I THINK IS IMPORTANT HERE IS, IS WE HAVE A $6 MILLION ADDITIONAL CAP.
SO IF IF THIS THING GOES ABOVE 82, IT CAN GO TO 88 AS FAR AS IT GOES.
AND IT'S STILL PART OF THE CAPITAL COST RECOVERY.
AND THEN WE HAVE YOU KNOW, IN REALITY I HATE TO TALK THIS ABOUT THIS, BUT WE HAVE ALSO A $6 MILLION CONTINGENCY IN THE ACTUAL, THE ACTUAL, CONSTRUCTION CONTRACT ITSELF.
[00:30:02]
WHAT DOES THIS DO TO THE WEST END, YOUR PLANS, WEST END DO YOU HAVE DO YOU HAVE PLANS FOR THE WEST END? I MEAN, WE'VE TALKED ABOUT THIS A LITTLE BIT LAST TIME YOU'RE HERE.WELL, AS YOU AS YOU MAY OR MAY NOT BE AWARE, WE GOT A GRANT.
WE GOT A $42 MILLION GRANT FOR THE WEST END FROM THE STATE.
RIGHT. AND THAT'S GETTING CLOSE TO BEING LET FOR THE CONTRACTS ON IT.
WE WERE WE HAD ACTUALLY DONE THE ENGINEERING ALMOST MOST OF THIS YEAR.
SO WE'VE HAD THE ENGINEERING IS IN PLAY.
THE FIRST PIECE IS TO PUT A NEW BERTH ACROSS THE FRONT AND THEN AT THE SAME TIME, SIMULTANEOUSLY, AS YOU MAY BE AWARE, WE HAVE A FEMA PROJECT THAT, THE PORT IS OBLIGATED.
RIGHT NOW, WE HAVE BOOKED ABOUT TEN, I THINK MAYBE ABOUT $12 MILLION ON OUR BOOKS RIGHT NOW.
THERE'S TWO CONTRACTS GOING ON AT ONCE.
AND, YOU KNOW, AND I WOULD SAY THAT MAYBE THE MAYBE WE CAN GIVE YOU THE MASTER PLAN BECAUSE WE HAVE THIS WE IN OUR MASTER PLAN, WE HAVE THE CASH FLOW PROJECTED OUT, YOU KNOW, THROUGH BOTH OF THESE PROJECTS, ACTUALLY, YOU KNOW, IT'S A 20 YEAR MASTER PLAN, WHICH WE'RE UP, WE UPDATED, AND I BELIEVE WE BROUGHT IT BACK TO YOU GUYS LAST, LAST MEETING.
WE WERE HERE. AND SO THAT'S BEEN UPDATED.
BUT, YOU KNOW, CASH FLOW FROM OPERATIONS IN IN 23 WAS OVER $30 MILLION.
AND SO THAT MONEY IS WHAT JIM WAS TALKING ABOUT.
WE'LL CONTINUE TO FUND OUR RESERVES WITH THAT.
YOU KNOW, IN IN THEORY, THIS IS 100% FINANCING.
IN OTHER WORDS, THAT'S WHAT WE'RE.
YEAH. I WAS GOING TO SAY IN THEORY, WE'RE LOOKING AT 100% FINANCING.
SO WE WON'T BE, YOU KNOW, DELVING TOO MUCH INTO OUR RESERVES, YOU KNOW, FOR THESE PROJECTS.
I MEAN, WE'RE WE'RE LOOKING AT, YOU KNOW, MAINTAINING MY MY GOAL INTERNALLY.
MY GOAL IS TO MAINTAIN OUR, OUR RESERVES AT $25 MILLION.
WE'RE AT WE'RE OVER WE'RE OVER THAT NOW.
WE'RE PRETTY CLOSE TO THAT. BUT OUR GOAL IS AND THAT'S ONE OF THE THINGS THAT HERE AGAIN, IF WE FINANCE THE DEBT SERVICE RESERVE AND WE PUT THAT IN THE BANK LIKE WE DID WITH THE LAST, THE LAST OFFERING WHICH WE PAID THAT DEBT SERVICE RESERVE WILL BE IN THERE, THEN WE'LL HAVE, YOU KNOW, REALLY IN THEORY, TWO MORE YEARS WORTH OF DEBT SERVICE IF WE ARE ABLE TO MAINTAIN THOSE LEVELS.
AND ALL THESE PROJECTS THAT WE'RE TALKING ABOUT, THE WEST END IS REALLY IMPORTANT TO US.
AND WE PUT WE'VE WE ARE REALLY CLOSE TO GETTING THAT STARTED.
AND THAT'S A 75, 25 SPLIT WITH THE STATE.
YOU MENTIONED THAT'S DOES ANYBODY HAVE A COMMENT THERE.
HOW MUCH HOW MUCH OF THAT THINKING ARE THEY GOING TO.
IS THAT WHAT YOU'RE GOING TO SPEND.
THAT'S WHAT THEY'RE GOING TO GIVE YOU BACK. WELL I'LL TRY TO I'LL TRY TO MAKE THIS SIMPLE.
NO IT'S NOT I GET IT, I GET IT.
SO WHAT I WOULD WRITE ON THIS ONE PICTURE'S WORTH A THOUSAND WORDS.
AGAIN I THINK I MENTIONED THIS A LITTLE BIT TODAY BEFORE THE MEETING.
YOU KNOW, ALL THESE BIRTHS, ALL THESE SLIPS RIGHT HERE ARE IN DISREPAIR.
YOU CAN SEE THE GREEN GROWING HERE.
AND SO THE PROJECT THAT WE RECEIVED MONEY FROM FEMA FOR WAS TWO THINGS.
WE WE GOT INSURANCE PROCEEDS AND WE GOT MONEY FROM FEMA.
SO AND I WOULD JUST SAY I'LL JUST PUT IT THIS WAY.
PREVIOUS ADMINISTRATIONS LACKED THE ABILITY TO KEEP GOOD RECORDS.
OKAY. AND SO WHAT'S HAPPENED IS, IS WE ARE IN, IN A, IN A CATCH 22 IN A WAY.
BUT IF THERE'S A GOOD PIECE TO IT.
SO WE'RE GOING TO GO AHEAD AND SEPARATE THESE TWO PROJECTS.
WE HAVE THE MONEY FROM THE STATE AND THEN WE HAVE THE FEMA PROJECTS.
WE WE'VE WE'VE RECEIVED APPROVAL FROM THE STATE FROM FEMA TO TAKE THE MONEY THAT WE WERE GOING TO PUT IN HERE TO FIX THESE, OKAY, AND REALLOCATE THAT TO A WON PROJECT.
AND SO THAT ONE PROJECT IS ABOUT $15 MILLION PROJECT.
WE BOOKED A $10 MILLION LIABILITY ON OUR BOOKS.
AND IF IF WE COMPLETE THAT PROJECT, FEMA WILL PAY US THE REIMBURSEMENT FOR THAT PROJECT, BUT THAT MONEY WILL GO TO PAY TO THEM FOR THE MONEY THAT THAT WE OWE THEM.
SO WHAT HAPPENS IS WE GOT TO PAY FOR THE PROJECT OUT OF POCKET.
BUT THEN THE WHEN THE MONEY COMES BACK REIMBURSEMENT FROM FEMA, WE DON'T GET THAT MONEY.
IT GOES TO THEM, THE LIABILITY GOES AWAY AND THE LIABILITY GOES AWAY.
JIM, YOU HAD A COMMENT ON THAT.
YEAH. WE'RE JUST GOING TO FOLLOW UP ON DAVID'S QUESTION.
[00:35:01]
I THINK WE'VE GOT ABOUT THREE THINGS GOING ON IN THE WEST END THAT WILL PROBABLY TAKE UP THE REST OF THE TERMS OF EVERYBODY SITTING AT THE TABLE.WE'VE GOT. IN THE FRONT TWO PROJECTS ROGER JUST TALKED ABOUT.
ONE IS A FAMOUS TERM MEANING THAT MESS UP.
IT COMES ABOUT BASICALLY FROM.
DOUBLE DIPPING INSURANCE AND FEMA WOULDN'T.
DON'T NEED TO GET INTO THAT SNAIL.
WE GOT TO DO THAT ONE SEPARATE THAT'S GOING ON.
DEMOLITION OF THE OLD ADM GRAIN ELEVATOR.
BEGIN TO MAKE THAT USABLE SPACE FOR SOMETHING.
SO THOSE ARE THE THREE KIND OF AND THERE'S A FOURTH SMALLER PROJECT, WHICH IS A REHAB OF THE BRIDGE BETWEEN THE PARKING GARAGE TO CRUISE TERMINAL 25.
SO SO ALL THOSE THINGS YOU JUST NAMED, THOSE ARE PRETTY MUCH PAY AS YOU GO.
YES. THE MATCH AND THE LOCAL MATCH FOR THE GRAIN.
YEAH. THEY'RE ALL GRANT. GRANT MONEY, RIGHT.
WE CAN DO A LOT OF THINGS JUST TO SEE IF THERE'S ANY INTEREST.
MAYBE THERE IS 18 ACRES, MAYBE THERE IS, MAYBE THEY'RE NOT.
AND ONE OF THE OTHER KEY, AND ROGER YOU MAY WANT TO ADDRESS THIS, IS WE'RE POSITIONING OURSELVES TO BE ABLE TO USE THE RUBBLE FROM THE GRAIN ELEVATOR AS PART OF THE SLIP FILL. YEAH. RIGHT.
YEAH. IT HAS TO BE GROUND TO A CERTAIN, PARTICULAR MATTER, BUT YES, THAT IS THE PLAN.
WE'D LIKE TO SEE IF WE CAN'T GET IT FROM BALL HIGH TO.
BUT, YOU KNOW, THERE'S A LOT MORE.
WE DON'T KNOW ANYBODY ON THE BOARD OVER THERE, SO.
WELL, WE MAY MAKE INQUIRY THERE ARE TO DEAL WITH.
BUT CONTEMPLATING THE PARKING GARAGE, YOU KNOW, THE PORT'S KIND OF UNDERLYING GOAL IS TO CREATE ENOUGH PORT PARKING FOR EVERY ACTIVITY FROM 28TH STREET EAST, TILLMAN, TEXAS, USS TEXAS, EVERYTHING.
AND WE THINK WITH THE SURFACE LOTS WE HAVE NOW ROUGHLY 1600 SPACE PARKING GARAGE, PLUS ANOTHER 700 SPACES THAT DON'T EXIST TODAY THAT MAY OR MAY NOT INCLUDE WHAT SALLY SMITH IS CONTEMPLATING WITH THE LIPTON TEA.
WE THINK WE'LL HAVE ENOUGH PARKING.
AND WITH THE TRAFFIC SIGNAL, HE MENTIONED GOING IN AT 33RD.
YOU'LL HAVE THE BULK OF CRUISE SHIP AND EAST END ACTIVITY EXITING HARBORSIDE AT 33RD STREET.
THERE'S ONE OTHER PIECE OF THAT TOO, THAT I THINK THE BOARD PASSED.
LAST MEETING IS, THE RAIL THAT RUNS ALONG HARBORSIDE DRIVE RIGHT HERE.
DID WE LET A CONTRACT TO TAKE THAT RAIL UP? AND THAT REALLY, REALLY TECHNICALLY ADDS ABOUT THREE LANES IN THERE.
SO. ARE YOU SHAVING THE RAILROAD? WE'RE SHAVING THE RAILROAD ALL THE WAY BACK TO ABOUT RIGHT HERE.
WELL, WHEN WE MET WITH BNSF, YOU KNOW, WE HAVE OUR OWN.
WE HAVE OUR OWN RAILROAD THERE.
SO, OUR SHORT LINE RAILROAD, YOU KNOW, BNSF, WHO IS THE THE MAJOR PLAYER IN THAT SECTION THERE AS WELL AS UP, YOU KNOW, WE WE BELIEVE THAT, YOU KNOW, ONCE WE GET THE GRAIN ELEVATOR DOWN, THEN WE'LL HAVE A BETTER, LAND AREA THERE FOR THEM TO. THEY'VE ALWAYS SAID TO US, WE WILL COME IN, WE WILL HELP WITH THE RAIL.
YOU GOT TO GIVE US A BUSINESS CASE.
SO THAT'S KIND OF WHERE WE ARE.
WE MET WITH THEM LAST WEEK, AS A MATTER OF FACT.
AND THEY SAID THE SAME THING WHERE ALL THOSE LOCOMOTIVES ARE WHEN WE GET WHEN THE DUST CLEARS, BASICALLY, YOU KNOW, LET'S ALL WORK TOGETHER AND SEE WHAT KIND OF, OF BUSINESS CASE THERE IS AND THEY'LL DO THE WORK.
YOU KNOW, THEY'VE ALREADY DONE SOME WORK ON THE OTHER SIDE.
AND ONE OTHER THING, AND I DON'T I WANT TO MENTION IS, IS THAT YOU?
[00:40:01]
YOU ARE I THINK YOU'RE AWARE THAT WE RECEIVED, $2.2 MILLION FROM HVAC TO LOOK AT A, DESIGN OR, YOU KNOW, REALLY MORE OF A PLAN FOR A ROAD FROM 45 TO THE PORT.I ALWAYS THOUGHT THIS WAS WAY OUT THERE, BUT, YOU KNOW, HERE AGAIN.
NOW, HVAC RECOGNIZED THIS PROJECT.
THEY ALSO GAVE US MONEY TO DO A STUDY WORK IN FRONT OF THE PRIVATELY OWNED PROPERTIES ON THE WEST END OF THE PORT, BECAUSE THERE'S SOME THERE'S SOME, RIGHT OF WAY THAT HAVE TO GO SO WE CAN FINISH THAT INTERNAL ROAD NETWORK ALL THE WAY.
CAN I CAN I ASK A QUESTION IF WE'RE GOING TO TALK ABOUT THE HDC FUNDING AND THE STUDY ON THE THE FAR END OF HARBOR SIDE, IS THAT REALLY THE PORT'S PROBLEM? I MEAN, THAT'S THAT'S NOT PORT PROPERTY.
YEAH, IT'S STATE HIGHWAY. I GET THAT STATE HIGHWAY.
RIGHT. AND SO THAT'S WHAT I MEAN.
YOU KNOW, HERE AGAIN, WE'RE NOT GOING TO BE DOING THIS IN, IN A VACUUM, RIGHT? I MEAN, I THINK WE'LL BE HAVING CONVERSATIONS WITH BOTH OF US.
AND I'M HOPING I'M HOPING WE'RE ALL AT THE TABLE, YOU KNOW, ON THIS THING.
BUT, YOU KNOW, THIS PROJECT HAS IS NOT MY PROJECT.
THIS PROJECT'S BEEN ON THAT LIST OF PROJECTS FOR YEARS.
AND SO WE PUT PROJECTS IN WITH THAT PROJECT IN, WE PUT THE, THE, THE WEST END PIECE AND THEN THE TRAFFIC LIGHT AT 33RD IS THAT IS THAT HARBOR WEST IN THE HARBOR SIDE.
IS THAT A JOINT? ISN'T THAT A JOINT CITY? ONE OF THEM IS A JOINT CITY PORT.
YEAH, THAT, THAT, THAT MONEY, THAT 2.2 WE BOTH HAVE TO SIGN OFF ON THAT, DON'T WE? ROGER CITY AND I YOU KNOW, I DON'T KNOW THAT BECAUSE WE HAVE NOT HAD THE THE MEETINGS YET.
NO, THAT'S THE NEXT STEP IS TO HAVE THE KICKOFF MEETINGS TO DETERMINE WHERE THAT'S GOING.
I MEAN, AND AS A MATTER OF FACT, I'M, I'M, I'M TRYING TO SET UP A MEETING RIGHT NOW WITH TEX DOT TO UNDERSTAND WHERE THEY I MEAN, OBVIOUSLY THEY'RE INVOLVED IN THIS, YOU KNOW, AND SO I'M TRYING TO GET A MEETING SET WITH THEM TO TALK ABOUT WHO WE MIGHT USE THAT THEY KNOW AND THOSE KIND OF THINGS.
SO I MEAN, IT HASN'T MOVED ANY UNTIL WE GET THE WE GET THE THE GO AHEAD FROM HDC.
YEAH. WELL IT'S JUST COMING THROUGH TRANSPORTATION POLICY BECAUSE I IT'S BEEN 18 MONTHS SINCE I WAS AT TRANSPORTATION POLICY, BUT I DON'T REMEMBER SEEING THIS THE REST OF 33RD STREET, ALL THE. THE ROAD ON THE SOUTH SIDE.
THERE ARE A COUPLE OF POCKETS OF IT.
THE MAJORITY OF BROADWAY IS ZONED COMMERCIAL.
SO YOU'RE THE RESURRECT STUFF IS GOING TO BE.
IT'S BEEN ON THERE FOR QUITE SOME TIME.
WE HAVE A REPRESENTATIVE ON TPC AND HJK AND THAT WOULD BE YOU.
SO I'M A LITTLE SURPRISED THAT COUNCIL DIDN'T KNOW THIS WAS COMING EITHER.
YEAH I MEAN NOBODY KNEW THIS WAS EVEN OUT THERE.
AND WELL YOU KNOW WE DID I MEAN I DID AND I WENT FOR IT, YOU KNOW, THAT'S ALL.
THAT'S ALL IT HAPPENS IS, IS WE WENT FOR IT.
WELL, YOU KNOW, WE JUST GOT THE MONEY.
SO, SO I MEAN, HERE AGAIN, I, I GUESS IT HAPPENS THAT FAST.
AND LO AND BEHOLD, THEY GAVE IT TO US.
WE NEED TO COORDINATE WITH THE CITY.
WELL, THEN WHY DID THE CITY GO OUT THERE AND GO AFTER THE MONEY? WELL, DO YOU NOT? THAT'S WHY YOU NEED YOU NEED TO COORDINATE WITH THE CITY.
I MEAN, I DIDN'T SAY THAT. I DIDN'T SAY THAT.
ALL I SAID WAS I WENT AFTER THE MONEY.
I MEAN, WHY IS THERE EVEN A PUSHBACK ON THAT? I'M NOT. THE MAYOR JUST SAID, HEY, WE NEED TO COORDINATE THIS, AND THAT'S FINE.
I'M JUST SAYING I WENT AND GOT THE MONEY, OKAY.
JUST SAYING THAT. SO AND WE AGREE AND.
WE'RE ALSO NOT SEEING IT. YEAH.
IT DOESN'T HAVE SPECIFIC REGULATIONS.
SO. HE DOESN'T HAVE ANYTHING SPECIFIC FOR STREET.
HOWEVER, WE DON'T SEE A LOT AT CAR WASHES.
YOU KNOW, WE DON'T SEE A LOT ON HARBORSIDE.
60. SEAWALLS ARE THE MAIN AREA WHERE WE SEE.
WELL, NOT NOT ANY MONEY TO IT RIGHT NOW.
YEAH, THEY THE THE IMPORTANT THING.
AND I'M GOING TO I'M GOING TO REITERATE THIS.
[00:45:09]
I GOT TO BELIEVE I'M HAVING.YEAH. I MEAN, I MEAN, IT GOES WITHOUT SAYING THIS IS THE PROJECT THAT HAS INTEREST TO ALL OF US.
IT DOESN'T MATTER WHO GOT THE MONEY OR HOW WE GOT IT OR WHATEVER.
BUT FROM HERE, GOING FORWARD, IT IT IS A STATE HIGHWAY.
EXACTLY. BUT WE ARE CROSSING A LOT OF CITY STREETS IN THE PROCESS.
IT IS CERTAINLY A MAJOR STEP FROM MAKING THE PELICAN ISLAND BRIDGE A PROJECT THAT GOES FROM PELICAN ISLAND ALL THE WAY TO I-45, AND NOT JUST THERE AT 51ST STREET.
IT'S CRITICAL IT'S BEING DONE.
SO WE'VE GOT TO CLEAN THAT UP.
IT'S A SWIMMING POOL EVERY TIME WE GET A HEAVY DEW.
SO THE BOTTOM LINE IS, IS FROM THIS POINT FORWARD, WE NEED TO WORK PORT AND CITY TOGETHER.
I DON'T CARE WHO TAKES THE LEAD.
THE CITY ACTUALLY DOES THIS STUFF MORE THAN WE DO.
I WANT TO GET BACK INTO A FLOW.
DID YOU GET YOUR QUESTIONS ANSWERED? WELL, I HAVE SEVERAL THINGS, BUT I MEAN, I'M HAPPY TO THROW A COUPLE OF THEM OUT THERE.
AND THEN WE HAVE DAVID FINKLEY ON THIS SUBJECT BEFORE YOU LEAVE IT.
ALSO USED TO WORK FOR TXDOT FOR FIVE YEARS.
I WOULD MAKE MYSELF AVAILABLE TO YOU AND THE WARS BOARD THAT AS YOU MOVE FORWARD WITH THIS, I'D BE HAPPY TO BE A LIAISON AND COMMUNICATE BACK TO COUNCIL ON THIS. NO PROBLEM.
THANK YOU. ALL RIGHT. THANK YOU.
SAID ALL I DID WAS GO GET THE MONEY.
NO, NO, I UNDERSTAND I GOT YOU AND AND THERE'S ALSO AND I DON'T KNOW IF YOU'RE AWARE OF THIS, BUT THERE'S ALSO A THOUGHT THAT THAT CONTINUES ALL THE WAY OVER TO BOLIVAR.
YEAH. AND THAT IS, THAT IS THERE'S DISCUSSIONS ON THAT AND THERE'S A MEETING COMING UP, I THINK, COUNCIL PERSON SHARON, SHARON, DID YOU HAVE A QUESTION? SHE, SHE WAS INTERESTED IN BEING ELEVATED TO MAKE THAT, TRANSITION FROM THE PORT TO THE PRIVATE AREA TO DEVELOP.
I THINK THAT'S IN YOUR YOU EXPRESSED THAT INTEREST BACK IN NOVEMBER WHEN WE MET.
DAVID, DID YOU GET YOUR THOUGHTS OUT ON THAT SUBJECT? OKAY. LET'S GO BACK TO JOHN.
JOHN, I'M GOING TO GO BACK TO A QUESTION THAT DAVID HAD ABOUT A TRAFFIC STUDY.
OKAY. HAVE YOU CONDUCTED A TRAFFIC STUDY.
IS THERE ONE IS THERE ONE IN RIGHT NOW.
THERE'S ONE IN THE BA CONTRACT.
WHAT IS IT, JEFF? A TRAFFIC IMPACT ANALYSIS.
IT HAS NOT HAPPENED. WE SO WE DO NOT KNOW THE TRAFFIC IMPACT OF THIS TERMINAL.
I THINK WE KNOW THE TRAFFIC IMPACT FROM.
BUT WE DON'T HAVE DAY TO DAY OPERATIONS.
WE DO NOT HAVE A TRAFFIC STUDY.
WE JUST ARE JUST WE'RE OPERATING OFF OUR EXPERIENCE.
HOW HOW DID Y'ALL COME UP WITH THE INTERNAL ROAD IF YOU DON'T HAVE A TRAFFIC STUDY, HOW DID Y'ALL ENGINEER THAT ROAD TO HANDLE TRAFFIC IF YOU DIDN'T HAVE A TRAFFIC STUDY? SO, JEFFREY, WE GOT JEFFREY.
JEFFREY, IF YOU COULD COME UP TO THE TABLE HERE.
JEFFREY. THERE WERE TRAFFIC STUDIES DONE PREVIOUSLY.
WHERE? LET'S LET'S LET'S GET JEFFREY.
COULD YOU IDENTIFY YOURSELF FOR THE.
AND DID YOU USE DID YOU YOU USE THAT TRAFFIC STUDY TO, TO DEVELOP THE ROAD.
YOU UNDERSTAND. COULD I BACK UP TO THAT.
JEFFREY THOMAS, PORT OF GALVESTON, CHIEF ENGINEER.
AT THE TIME, IT WAS CRUISE TERMINAL 25 AND CRUISE TERMINAL 28.
WE ANALYZED THE TRAFFIC THERE ALONG WITH BACKGROUND TRAFFIC IN THE AREA, AND WE PROJECTED TRAFFIC OUT OVER THE 20 YEARS OF THE MASTER PLAN TO TO PROJECT WHAT THE TRAFFIC WOULD BE AT CRUISE TERMINAL TEN AND CRUISE TERMINAL 16 IN THE FUTURE.
AND SO WITH THAT, WE DID A MORE DETAILED ANALYSIS OF CRUISE TERMINAL TEN.
AND WE'RE FINDING THAT THAT THEY PERFORM VERY SIMILAR TO TO HOW HOW THE MODEL WAS IN THAT CASE.
TO SEE WHAT THE IMPACT AT THE SIGNAL ON HARBOR SIDE WILL BE.
AND THAT'S THAT'S WHERE WE ARE AT THE MOMENT WITH ON 16TH STREET.
[00:50:04]
RIGHT. 60 DID I SAY DID I? YEAH, THAT'S THE SIGNAL YOU'RE TALKING ABOUT 16 THE 14TH STREET SIGNAL.YES. YOU GUYS RECEIVE MONEY FOR THAT FROM THESE, JACK.
SO, CAN YOU FORWARD THOSE STUDIES TO US, PLEASE? YES. THANK YOU.
NEXT QUESTION. WELL, I MEAN, I'LL ASK IT FURTHER WHAT YOU WERE TALKING ABOUT.
AND THEN, YOU KNOW, WHEN WE WENT TO TEX DOT AND GOT MONEY FOR THE INTERNAL ROAD NETWORK, THE THOUGHT PROCESS WAS, IS THAT ROADS IS A TERRIBLE SHAPE.
I MEAN, IT WAS IT'S BROKEN IN PLACES.
IT'S, IT'S IT'S NOT EVEN EXISTENT IN, YOU KNOW, BETWEEN 25 AND AND 51ST.
MY THOUGHT, MY IDEA WAS, LET'S JUST FINISH THAT ROAD WE'RE TALKING ABOUT.
GET US EVERYBODY GET GIVE US THE OPPORTUNITY TO GET ALL THE CARGO TRAFFIC OFF OF HARBORSIDE DRIVE BY USING 51ST VERSUS HARBORSIDE DRIVE. AND WE YOU KNOW, THIS WAS PART OF THE THE CONNECTIVITY FUNDS THAT TXDOT GAVE TO PORTS, BUT CONNECTING THE PORTS.
LET ME LET ME ASK A QUESTION REAL QUICK BECAUSE I WANT TO MAKE SURE I'M CLEAR.
YOU WANT TO TAKE THE, YOU KNOW, YOU WANT TO TAKE THE, THE CARGO TRAFFIC AND NOT GO DOWN 51ST STREET.
YOU JUST WANT TO PUT IT ON THE INTERNAL ROAD SYSTEM, KEEP IT ON HARBOR SIDE.
YOU'VE GOT PLANS TO DEVELOP A NEW GATE SYSTEM HERE.
YEAH. SO THAT WILL BE QUEUING FOR TRUCKS ON THIS END.
AND SO WHEN YOU START BMW, WHEN YOU START THINKING ABOUT, YOU KNOW, THE PELICAN ISLAND BRIDGE AND WHERE IS THAT GOING? I MEAN, IT JUST SEEMS LIKE.
YEAH, ME, I BROUGHT THIS KIND OF BROUGHT TO THE FOREFRONT BECAUSE THIS HAS GOT TO BE REDESIGNED, YOU KNOW, BECAUSE IF YOU'RE GOING TO BUILD A NEW BRIDGE AND HOPEFULLY IF YOU GET PEOPLE PLUGGED INTO HERE AND THEN YOU HAVE ALSO THIS.
SO YOU HAVE THREE ARTERIES COMING OFF OF A REDESIGNED AREA.
OKAY. SO THAT'S THAT'S THAT SECTION.
BUT WE'RE REALLY FOCUSED ON THE IMPACT OF THE CRUISE TRAFFIC.
AND I GUESS YOU ANSWERED THAT.
I MEAN THAT WAS GOOD INFORMATION.
NEXT QUESTION ON THE TIMELINE.
SO WE'VE GOT A SHIP COME IN NOVEMBER 9TH 25.
SO CAN YOU TAKE ME THROUGH THE TIMELINE? SURE. KIND OF HIT THE HIGH NOTES.
WELL, THE HIGH NOTES WOULD BE IN TWO YEARS.
IT WOULD BE, STARTING IN IN MAY OF 2024.
WE WILL BEGIN WORK ON, ACTUALLY THAT'S WHEN.
LET'S WALK. THAT'S AN IMPORTANT PART OF THE TIMELINE TOO.
YES. NO. MAKE SURE YOU INCLUDE THAT.
AND I WOULD SAY WE'LL BE COMING TO COUNCIL.
SOMEWHERE IN, THE SUMMER, EARLY SUMMER OF 24 FOR FOR THE BOND.
I MEAN, I AND I'M THINKING, I'M THINKING JUNE OR JULY SOMEWHERE AROUND THERE BECAUSE THERE'S NOT GOING TO BE REALLY ANYTHING GOING ON IN TERMS OF SIGNIFICANT DOLLARS.
THE ONLY THE ONLY DOLLARS WE'RE, WE'RE PUTTING OUT RIGHT NOW IS THE DESIGN AND ENGINEERING CONTRACT.
RIGHT. SO THAT WILL START WITH OBVIOUSLY DIRT STARTS GETTING TURNED OR OR WORK STARTS HAPPENING.
SO WE WHEN WILL THAT BE? JEFFREY. YOU I'LL LET HIM.
BUT I MEAN, I KNOW WE'VE BEEN TALKING ABOUT.
SO. SO RIGHT NOW, THE PLAN IS TO TO GET AN EARLY FOUNDATION PERMIT, IN APRIL AND THEN START CONSTRUCTION OF FOUNDATIONS PRIMARILY ON THE CONNECTION BUILDING IN BETWEEN THE TWO BUILDINGS WE REFER TO AS THE KNUCKLE, WITH THE VERTICAL CORE AREA.
START ON FOUNDATIONS ON THAT IN MAY.
AND THEN BY THE TIME WE'RE ABOUT DONE WITH THOSE FOUNDATIONS, AND WE'LL ALSO BE WORKING ON THE BERTH AT THIS TIME ON CONCOURSE SUPPORTS, TYING THE SUPPORTS FROM THE CONCOURSE ON THE NORTH SIDE OF THE BUILDING INTO THE EXISTING WHARF STRUCTURE.
WE'LL MOVE TO THE FOUNDATIONS FOR THE GARAGE, WHICH BECOMES THE NEXT, ITEM.
THAT'S, THAT'S THAT'S HOT FOR, FOR THE.
AND SO THAT'S WHY WHAT'S THAT DATE JEFF.
YEAH. WE'LL MOVE TO THE PARKING GARAGE AND THE FOUNDATIONS OF ALL THAT.
[00:55:04]
CIVIL SOUTH OF WHARF ROAD BETWEEN WHARF ROAD AND HARBORSIDE.DELMONTE WILL HAVE TO BE OUT BY THAT DATE, AUGUST 1ST.
ANYBODY ELSE? YES, MA'AM. LET ME BACK YOU UP A LITTLE BIT.
YOU. YOU'LL HAVE A MEETING TODAY WHERE YOU ALL PLAN TO VOTE ON THIS CONTRACT, CORRECT? CORRECT.
SO LET'S JUST SAY CONTRACT GETS SIGNED TODAY AND THEN ENGINEERING IS NOT DONE YET.
60% DESIGN DEVELOPMENT RIGHT NOW.
I THOUGHT WHEN WE WERE HERE AT OUR LAST MEETING.
DID THAT ARE WE JUST I MEAN, JUST MISSED BY EIGHT DAYS OR SO.
BUT I MEAN, WELL, NO, NO, BECAUSE IT'S ONLY 60%.
I THOUGHT WE WERE WE WERE TALKING 90% DRAWINGS.
THAT'S WHAT I HAVE IN MY NOTES, IS THAT 90% DRAWINGS WERE GOING TO BE COMPLETED.
SO IT'S NOT THE END OF THE YEAR, NOT JUST A COUPLE DAYS.
WELL, I MEAN, SO BUT THAT'S ALL RIGHT.
THAT'S ALL RIGHT, I GUESS. WHAT'S THE QUESTION? I MEAN, YOU KNOW, WELL, WE JUST WANT TO KNOW WHERE YOU ARE ON SCHEDULE AND MAKING SURE THAT, YOU KNOW, YOU'RE ADHERING TO THE SCHEDULE THAT YOU KIND OF TOLD US TO BEGIN WITH.
OR IF IT'S CHANGING, LET US KNOW HOW IT'S CHANGING.
YEAH, I MEAN, THAT'S THAT'S PRETTY FAIR.
THAT'S WHY I MEAN, COUNCIL MEMBER LISTOWSKI IS ASKING FOR A ROUGH MILESTONE SCHEDULE.
WE JUST KIND OF WANT TO SEE THAT SO THAT WE KNOW WHERE YOU'RE HEADED SO THAT WE CAN COMMUNICATE TO THE CITIZENS AS WELL AS YOU CAN, SO THAT LET THEM KNOW WHAT'S GOING ON, WHEN IT'S GOING TO BE DONE AND WHEN THEY CAN START TO SEE THE BENEFIT.
AND GIVING THEM SOME HEADS UP IS GREAT.
YOU KNOW, JOHN PAUL, WE WORKED REALLY WELL TOGETHER.
CITY IN THE PORT TO GET OUR CRUISE TERMINAL, TEN ON TIME WHEN THAT FIRST SHIP CAME IN.
I'M JUST THAT'S WHY I'M SOME OF THE REASONS I'M ASKING FOR.
SO, SO THAT MIGHT BE A LITTLE BIT LATER, BUT.
YEAH. AND THEN FROM THAT TIME TO THE NOVEMBER 9TH 25 DEADLINE, Y'ALL ARE JUST CONSTRUCTION ALL OUT.
ALL OUT. AND THE CONTRACT HAS A HAS A DEADLINE OF, AUGUST OF 25.
THE CONSTRUCTION CONTRACT THAT'S COMING IN NOVEMBER OF NOT NOVEMBER 9TH.
SO THAT AUGUST OF NOVEMBER IS JUST CUSHIONED.
YES. HOW FAR AHEAD OF 25 WERE YOU WHEN WHEN THE SHIP ARRIVED? WE HAD. WE WE? YEAH IT WAS THERE WAS A LOT LESS CUSHION ON 25.
YEAH. THE ONLY ISSUE WITH 25 WAS, DELAY IN DELIVERY OF ELEVATORS.
THEY'RE STILL PUTTING IN ELEVATORS RIGHT NOW.
AND A LOT OF THAT WAS PERSONNEL FROM THE FROM THE COMPANY THAT DID THE INSTALLATION.
YEAH. MAKES THE RAMP A GOOD IDEA.
AND SO THE THINGS THAT REALLY CONCERN OR KIND OF CONCERN OF COUNCIL WOULD BE THE BOND.
THE DESIGN STANDARDS OR PERMITTED USES.
YES. THAT'S WHAT WE'RE MEETING TODAY.
I KNOW, BUT I MEAN, IT'S YOU KNOW, IT IT GETS SO FAR OUT IN FRONT DIFFERENT THAN 10 OR 25.
I MEAN, WE'RE TRYING TO GET Y'ALL INTO THE LOOP, BUT WE'RE WORKING ON THIS EVERY DAY.
YEAH, BECAUSE THERE'S A LOT OF MOVING PARTS THAT ALL HAVE TO COME TOGETHER.
AND I THINK THE PORT'S PROVEN THEIR ABILITY TO DELIVER WITH CRUISE TERMINAL TEN AND 25.
BUT WE WANT TO DO IT DIFFERENT THIS TIME.
NOT THE FIRST TIME YOU HEAR ABOUT IT.
IT'S WHEN WE'RE ASKING YOU TO APPROVE THE BOND.
AND THAT'S WHAT'S SO IMPORTANT ABOUT THIS MEETING.
AND AND YOU COULDN'T COME UP THE WAR WARS BOARD COULD NOT COME UP WITH HOW MUCH TALK TO YOU ABOUT HOW MUCH MONEY WE'RE GOING TO NEED IN THIS BOND WITHOUT GOING THROUGH THIS NEGOTIATION OF THIS CONTRACT.
[01:00:05]
I, YOU KNOW, I GUESS IT JUST IT WOULD BE DIFFERENT IF MSC WAS PUTTING UP MONEY AND WE NEEDED TO KNOW HOW MUCH MONEY THEY WERE GOING TO PUT UP AND HOW MUCH MONEY THE CITY WAS GOING TO PUT UP.BUT THIS IS THE PORT, SORRY, THE PORT IS PUTTING UP ALL THE MONEY.
CORRECT. IS THERE EVER BEEN ANY OTHER REIMBURSEMENT FROM THE ISSUE? I MEAN, BUT TO GET TO A GOOD NUMBER FOR THAT BOND ISSUE, I MEAN, YOU'VE GOT TO DO THE ENGINEERING RIGHT TO BE ABLE TO GET TO THAT NUMBER.
SO THAT'S REALLY THE CONTRACTS THAT WE'VE LET HAVE REALLY BEEN.
WE HAVEN'T LET ANYTHING ON THE CONSTRUCTION.
YOU KNOW, WE HAVEN'T HEARD ANY REVENUE NUMBERS.
ALL WE'VE HEARD IS MAYBE WHAT IT'S GOING TO COST.
SO IT'S GOOD. IT'S GOOD THAT JIM, YOU WENT YOU OUTLINED THAT.
AND I MEAN $10 MILLION CUSHION AT THE END OF THE YEAR IS NOT BAD.
PRETTY GOOD. SO I, YOU KNOW, I'M JUST COULD WE EVER DO IT ANY EARLIER FOR YOU? I DON'T, I DON'T KNOW, YOU KNOW, IT'D BE GREAT IF WE WERE TALKING ABOUT, YOU KNOW, $100 MILLION BOND BEFORE WE THE DAY BEFORE WE SIGNED THE CONTRACT OR THE DAY OF WE SIGNED A CONTRACT. I MEAN, OKAY, MIKE.
SO WE GAVE YOU THE NUMBERS YOU'RE TALKING ABOUT EARLIER WITH THE REVENUE.
DOES THAT INCLUDE THE FIRST YEAR? BECAUSE THE FIRST YEAR, I BELIEVE THEY DON'T HAVE TO PAY A CERTAIN FEE.
NONETHELESS, THE FIRST YEAR BECAUSE OF THE MOVEMENT, IT'S 500,000 INSTEAD OF 500,000.
IS IT A 600,000, 500,000? IT'S 6 MILLION VERSUS 7.2 MILLION.
YEAH. SO THE FIRST YEAR THERE'S NOT GOING TO BE 1.2 MILLION OF THAT.
THAT'S CORRECT, THAT'S CORRECT.
YEAH. BUT THE DEBT WON'T KICK IN UNTIL.
BUT WE'LL ONLY BE PAYING THE INTEREST.
DEBT WON'T KICK IN TO TO AMORTIZATION WON'T KICK IN.
WE'RE TRYING TO MATCH THE CASH FLOW DEBT SERVICE TO THE CASH FLOW REVENUE.
RIGHT. SO WE COULD HAVE SOME DEFERRAL, AS JIM WAS SAYING, WE COULD HAVE SOME DEFERRAL OF PRINCIPAL EARLY ON DURING THIS TIME PERIOD, WHICH IS COMMON IN BONDS.
YOU CAN YOU CAN KIND OF CUSTOMIZE YOUR.
SURE. I MEAN, I JUST SO THEY KNOW THAT'S A GOOD STORY.
IT WAS SUBSCRIBED FIVE TIMES THE AMOUNT WE NEEDED.
THERE WAS THERE WAS ORDERS ON THE BOOKS FOR FIVE TIMES THE NUMBER OF ORDERS WE NEEDED FOR THE DEBT.
I AND THAT'S, THAT'S A FUNCTION OF OUR OF OUR IT IS THE INDUSTRY, RIGHT? YEAH. WELL OUR CASH FLOW STRENGTH AND THE STRENGTH OF THE CITY.
THE STRENGTH OF THE PORT. YEAH, YEAH I AGREE.
WHY ARE YOU WAITING TILL JULY TO GET COUNCIL APPROVAL ON THE BONDS? IF YOU KNOW WHAT THIS IS GOING TO COST.
SEE, WE WE'RE NOT SEEING ANY SIGNIFICANT NEED TO COME OUT EARLIER.
I MEAN WE COULD COME WE COULD COME OUT EARLIER.
WELL GET COUNCIL APPROVAL EARLIER BECAUSE THE APPROVAL EARLIER.
NO, NO, IT'S NOT NECESSARILY THAT I'M NOT SURE THAT WE ARE GOING TO HAVE THAT NEED.
WHY GO OUT. AND BECAUSE WHEN YOU GET A BOND OFFERING IT'S ALL OR NONE.
YOU START PAYING INTEREST FROM DAY ONE.
COUNCIL COUNCIL APPROVAL AND SELLING THE BONDS ARE TWO DIFFERENT THINGS.
YEAH, MAYBE. MAYBE 20, MAYBE 30 DAYS.
I MEAN, I MEAN, YOU WAIT TO SELL THE BOND.
THAT'S RIGHT. YOU DON'T HAVE TO SELL THE BOND THE DAY YOU GET THEM.
TO ANSWER YOUR QUESTION, I BELIEVE IN REALLY? BARON WALLACE OR SOMEONE AT, THE BOND COUNSEL COULD BE MORE SPECIFIC, BUT I THINK LEGALLY, IT ALL HAS TO BE BUTTONED DOWN WHEN IT COMES TO CITY COUNCIL.
WITH THAT ORDINANCE APPROVING A BOND SALE WITH THE AMOUNT AND SUCH AND THE TERMS. AND THE CONTRACT HAS TO BE PART OF THE.
BUT WHEN YOU'RE PACKAGE THAT GOES TO THE AG.
SO IN THEORY YOU HAVE A CONTRACT HERE RIGHT.
THE CONTRACT OPERATING AGREEMENT WITH THE CUSTOMER.
CONSTRUCTION THE CONSTRUCTION CONTRACT.
YOU DON'T HAVE A CONSTRUCTION CONTRACT.
AND WE'LL GET THE REFINED NUMBERS, BUT YOU DON'T KNOW WHAT IT'S GOING TO COST.
YOU DON'T WANT TO GET THE NUMBERS RIGHT AND THAT KIND OF THING RIGHT.
I JUST WANT TO GET THE NUMBERS RIGHT AND FINALIZED, HOPEFULLY DOWN AS LOW AS WE CAN GET THEM.
AND THEN THAT'S WHEN WE HAVE THE NUMBERS AND WE REQUEST THE FINANCING.
WELL, LET ME LET ME GET POLITICAL HERE JUST FOR A SECOND.
[01:05:02]
JULY IS 60 DAYS THE OTHER SIDE OF A CITY COUNCIL ELECTION.I'M NOT SUGGESTING YOU'RE GOING TO SURPRISE, SURPRISE.
BUT. BUT AT LEAST AT LEAST TWO OF US AND AT LEAST TWO OF US, YOU KNOW, GUARANTEE.
SO, YOU KNOW, I DON'T KNOW IF THERE'S ANYTHING TO DO ABOUT THAT.
I WON'T BE INVOLVED. WE'LL DO IT EARLIER.
YEAH. NO, I GET I GET THAT, I GET THAT I'M TALKING ABOUT THE, THE POLITICAL END OF IT HERE, HOW THE CONNECTION BETWEEN KNOWING WHAT IT'S GOING TO COST AND NEEDING OUR APPROVAL TO GO FORWARD WITH THE BONDS, BUT AS JOHN SAID, YOU KNOW, TO SELL THE BONDS TODAY, YOU GET THAT APPROVAL.
I THINK IT'S, WHAT, 90 DAY, 90 DAYS OR SOMETHING.
WELL, AFTER THAT TIME. OH, IS THAT RIGHT? IS THERE REALLY A THERE IS A TIME LIMITATION.
THERE'S A YEAH, WE'RE THE INFORMATION ORDINANCE FROM THE CITY.
IT KIND OF TURNS THE HOURGLASS OVER AND IT STARTS.
OKAY. THAT'S THAT'S GOOD INFORMATION.
THAT'S GOOD INFORMATION. IT'S REALLY RELATES TO THE INFORMATION THAT'S IN THE BOOK GOING STALE.
OH YEAH. THAT MAKES SENSE. YOU GOT AUDITS THAT HAVE TO GO IN THERE.
AND FROM THE ACCOUNTING STANDPOINT THEY DON'T WANT THESE AUDITS THAT OLD.
SO YOU WANT THIS BUTTON DOWN BEFORE YOU COME TO COUNCIL BECAUSE THEN YOU AGAIN YOU DON'T WANT.
WELL YEAH. AND HERE AGAIN MY I DON'T WANT THE MONEY TILL I HAVE TO HAVE IT.
BECAUSE THEN, BECAUSE THEN THE, THEN THE CLOCK STARTS TICKING.
YES. OKAY. FOR JOHN PAUL AND COUNCILWOMAN MARY.
OFFICIAL STATEMENT. WE'LL WORK TOGETHER.
WE HAVE A BOND WORKING GROUP CORRECT WITH THE CITY, AND I'LL PLEDGE THAT WE'LL GET THIS AS SOON AS PRACTICABLE TO THE CITY FOR FOR APPROVAL OF THE BOND. I DON'T KNOW WHAT THAT DATE IS.
THE HARD NUMBERS. GOOD NUMBERS.
YEAH. THE THE FIRST MEETING FOR THE BOND WORK NEXT WEEK.
AND I WOULD TELL YOU THAT WE YOU KNOW, I HAVE THIS CONVERSATION WITH JEFF ALL THE TIME.
AND, AND ONE OF THE THINGS THAT WE'RE, WE'RE HEARING FROM HENSEL PHELPS IS WE'RE PRETTY GOOD.
I MEAN, THEY THEY'RE TELLING US AT THIS STAGE AT 60%, THEY KNOW THIS MARKET.
THEY THIS IS THE THIRD CONSTRUCTION PROJECT THEY KNOW THE CONTRACTORS ARE GOING TO USE.
AND SO THEY'RE THEY'RE SAYING, YOU KNOW, HERE AGAIN, IT'S NOT IT'S NOT KNOWN UNTIL IT'S KNOWN.
THEY THEY'RE SAYING TO US WE DON'T SEE MUCH CHANGE BECAUSE THEY'RE WILLING THEY WERE WILLING TO START TALKING ABOUT, ABOUT, YOU KNOW, THE COST OVERRUN, COST OVERRUNS AND ALL THOSE KIND OF THINGS WHICH THEY'RE OBLIGATING THEMSELVES TO AT THIS STAGE OF THE GAME.
AND THAT'S, THAT'S WHAT THE CMR, CMR IS, THAT'S, THAT'S THE, THE BEAUTY OF THAT.
RIGHT, RIGHT. IT'S A GUARANTEED CONTRACT.
YOU KNOW WHAT THAT PRICE IS GOING TO BE.
AND THEN YOU DON'T KNOW WHAT THAT PRICE IS GOING TO BE.
COUNCILWOMAN BOVIER HAD A QUESTION.
DO YOU KNOW WHAT THE OVERRUNS ARE? SO FAR? WE'RE UNDER, WE DIDN'T HAVE ANY OVERRUNS.
WE WE WERE. WE'RE UNDER RIGHT NOW.
JEFF. HOW MUCH? ABOUT A MILLION AND A HALF UNDER WHAT WE THOUGHT WAS THE COST.
JOHN, THE BAD THING ABOUT THAT IS, EXCUSE ME, IS WE HAVE TO PUT THAT MONEY INTO THE TERMINAL, THOUGH, BECAUSE THAT MONEY WAS BOND MONEY AND HAS A SPECIFIC PURPOSE. AND IT HAS TO GO INTO THE TERMINAL OR INTO THE WATERFRONT, I WOULD SAY.
YEAH, MAYOR, I THINK JOHN PAUL BUT, TRUSTEE YARBOROUGH HAD A PART.
JOHN. LET'S DO AND WE'LL GET JIM.
I HAD A QUESTION ABOUT THE, THE PASSENGER TURNS AND THE FEE THAT ASSOCIATED WITH THAT.
THEY'VE GOT ONE SHIP COMING IN.
AND THAT'S ONLY 300, MOVEMENTS.
MAYBE A LITTLE BIT LESS THAN 300.
SO WHEN YOU WHEN YOU BRING ANOTHER SHIP IN THAT GOES TOWARDS THEIR 500, RIGHT.
SO THEIR FEE GETS REDUCED, BUT THEIR OBLIGATION GETS THEIR OBLIGATION GETS REDUCED.
DOES THAT BRING ANY MORE MONEY IN FOR THE PORT? NOT REALLY. NOT UNTIL YOU GET OVER 600,000 OR OVER 500, 500,000 PER YEAR NEXT YEAR.
600,000. RIGHT. JOHN PAUL, YOU HAVE TO ALSO LOOK AT THE PARKING, WHICH ISN'T PART OF THAT.
BUT WE GET THAT NO MATTER WHAT, THOUGH, IF YOU HAVE MORE PEOPLE COMING, MORE PARKING, YOU GOT TO REALIZE ABOUT A GUARANTEED MOVEMENT THAT MAY OR MAY NOT BE A PERSON OR A CAR.
LIKE THAT'S A REVENUE GUARANTEE.
AND IT'S NOT A GUARANTEE THAT I'VE GOT SOMEBODY COMING THROUGH THERE.
YEAH. I MEAN, IT ONLY BENEFITS US TO GET MORE PEOPLE OUT HERE.
[01:10:02]
EXACTLY. OH, EXACTLY.BUT BUT I'M I'M. MY QUESTION KIND OF IS, IS THAT, I MEAN, THAT'S THE WAY THE CONTRACT'S WRITTEN, BUT IT SEEMS LIKE THAT JUST PUTS MORE WORK ON THE PORT, AND WE DON'T. YOU'RE NOT MAKING ANY MORE MONEY.
YOU'RE HAVING TO GO OFF PARKING.
YOU'RE HAVING TO GET MIGHT GET ON PAR.
I ASK THE SAME QUESTION, JOHN.
THE PARKING THOUGH, YOU GET REGARDLESS.
WELL, THEY DON'T COME. YOU DON'T GET IT ONLY BASED ON THE NUMBER OF PEOPLE.
THERE'S NO CAR THERE. YOU'RE NOT GETTING GETTING PARKING.
THEY BRING THE MINIMUM OF 300,000 PASSENGERS.
WE'RE GOING TO GET THE PARKING PROPORTIONATE PARKING ON 300,000 PASSENGERS.
WE'RE GOING TO GET THE PARKING OFF THAT EVEN THOUGH THE PASSENGER REVENUES IS GUARANTEED.
THE MORE MONEY REALLY AT THAT POINT.
AND JOHN PAUL, WE'RE NOT LOOKING TO HAVE 600,000 PASSENGER MOVEMENTS.
WE'RE LOOKING TO HAVE A NUMBER MUCH GREATER THAN THAT.
YEAH, THAT'S IF WE DO OUR JOB, WE'RE GOING TO GET 800,000 PASSENGER MOVEMENTS.
YOU KNOW, RIGHT NOW, JUST TO GIVE YOU A COMPARISON, YOU KNOW, RIGHT NOW CARNIVAL IS PROBABLY DOING SOMEWHERE AROUND 1,000,006 TURNS IS PERMITTED. OKAY.
SO THAT'S WHERE WE'RE HEADING.
YEAH. SO I THINK WE'LL GET THERE QUICKER BECAUSE 800,000.
YEAH. AFTER THE 500 IT'S A BIG NUMBER.
I MEAN IS THERE AN ADVANTAGE FOR MSC TO BRING IN MORE THAN THE 500 OR THE PORT BRING IN.
I MEAN MY, MY, MY, MY, YOU KNOW, WE'RE PAYING FOR IT.
THE PORT'S PAYING FOR IT THROUGH THE BOND.
MSC'S NOT PUTTING ANY MONEY INTO THE TERMINAL.
THEY'RE GUARANTEEING 500,600 AFTER.
IS IT. IS IT? DO YOU MAKE MORE MONEY? IF YOU THEN SAY, OKAY, WE'RE ONLY GOING TO WE'RE ONLY WE'RE GOING TO KEEP YOU AT 600 BECAUSE WE'RE GOING TO BRING IN A SHIP AND BRING IN ANOTHER 300.
WELL, OUR GOAL IS TO GET TO 800.
YEAH, YOUR QUESTION'S GOING LIKE SO THEY'RE GUARANTEEING 600,000, RIGHT.
AND AFTER THE FIRST YEAR THEY'RE GUARANTEEING 600,000.
SO I GO OUT AND I BRING IN ANOTHER 300,000.
YES. OKAY. SO MY CAP, MY WHERE THE MONEY FOR US IS, IS STILL IN PARKING AT THAT STAGE.
THE MINUTE I GET OVER 600,000, THAT'S WHERE THERE'S MORE MONEY IN TERMS OF THERE IS.
THAT'S WHERE IT IS. YOU MAKE MORE MONEY BRINGING IN A SHIP YOURSELF AFTER THE 500 OR 600,000.
AND LET'S DON'T OVERLOOK THE CITY MAKES MORE MONEY TOO, BECAUSE YOU GET PART OF THAT MOVEMENT.
THAT'S WHAT I'M. THAT'S WHAT I'M GETTING AT HERE.
I ASK THE SAME QUESTION AT OUR MEETING, JOHN, BECAUSE YOU GET YOU GET, WHAT IS IT? $0.25 A MOVEMENT, $0.25 A TURN, EACH ONE.
WELL, THAT'S REGARDLESS IF MSC DOES IT OR THE PORT BRINGS IT.
WELL, IF YOU IF YES, BUT IF WE GET IT TO 800,000.
INCREMENTALLY MORE PARKING PER PASSENGER.
I CAN TELL YOU. SO I'M JUST SAYING, IF THE.
IF ROGER GOES OUT AND GETS ANOTHER SHIP AND BRINGS IT IN AFTER MSC MAKES THEIR QUOTA OF 600,000, WE SAY NO, WE'RE GOING TO STOP YOU AT 600, BECAUSE WE'RE GOING TO BRING YOU THE SHIP BECAUSE WE'RE GOING TO MAKE MORE MONEY, MORE REVENUE.
WELL, IF YOU READ THE CONTRACT, MSC HAS GOT CERTAIN DAYS RESERVED.
YES. YEP. AND THEN WE CAN ONLY SELL CERTAIN DAYS TO OTHER SHIPS.
YEAH. AND SATURDAYS IS IS VERY VALUABLE.
THAT'S RIGHT. AND I WILL TELL YOU WHAT MSC WILL PROBABLY DO.
AND THEY'VE WE'VE ALREADY HAD THIS CONVERSATIONS IS THEY'LL BE BRINGING THEY'LL BE RUNNING SOME FIVE FIVE FOURS OUT OF THERE WHICH MEANS EVERY, THAT MEANS EVERY TWO WEEKS THEY'LL RUN A FIVE DAY, A FIVE DAY AND A FOUR DAY.
I GOTCHA. SO ORDINARILY A 52 IS ONE SHIP A WEEK, AND THEN ALMOST EVERY ONE OF OUR CRUISE LINES THAT COME IN HERE, THEY RUN FIVE, FIVE FOURS, MEANING IT'S A SECOND SHIP FOR FIVE DAY. THEY GO FOR A FIVE DAY AND THEY GO FOR A FOUR DAY, AND THAT'S A TWO WEEK COUNCIL LET'S LET'S KIND OF BRING OUR THOUGHTS TOGETHER.
JIM, YOU WANTED TO REALITY JOHN PAUL, IF THIS THING GOES LIKE CARNIVAL IS GONE AND ROYAL IS GONE, MSC IS GOING TO BE BRINGING MORE SHIPS MORE, MORE.
AND IF YOUR COMBINATIONS OF SHIPS TO GET WELL OVER THE 600,000 MINIMUM.
AND THEN WHAT I WANT TO SAY EARLIER WAS, YOU KNOW, I AGREE WITH YOU.
I DON'T I REALLY DON'T LIKE HAVING A MEETING AT 2:00 AND VOTING ON THAT STUFF AT 3:00.
WE ARE UNDER SOME TIME CONSTRAINTS AND CONSTRUCTION SCHEDULES AND.
IF THEY'RE MOVING, IF COUNCIL.
AND YOU'RE RIGHT. IF WE APPROVE THE CONTRACT.
[01:15:03]
VERY LITTLE WIGGLE ROOM TO TURN AROUND.THE NEXT THING WE'LL DO IS APPROVE A CONTRACT WITH HENSEL PHELPS.
AS JEFF SAID, ALL WE'VE DONE IS CONTRACT FOR SOFT COST TO GET US TO THIS.
WE HAVEN'T CONTRACTED FOR CMA OR CONSTRUCTION DOLLARS YET.
SO IF THERE'S ANY IF THERE'S ANY RED FLAGS OR JUST SAY STOP.
THEN I'M WILLING TO SAY, HEY, LET'S DON'T VOTE ON IT THIS AFTERNOON.
LET'S GIVE YOU TIME TO THINK ABOUT IT.
WHAT I'VE HEARD SO FAR ARE MANY OF THE SAME QUESTIONS WE'VE ASKED AT THE WHARF BOARD.
YEAH. JUST TRYING TO GET A HANDLE AROUND ALL THIS STUFF.
AND IF THAT'S WHERE WE ARE, THEN I'M COMFORTABLE THAT THERE'S ENOUGH MARGIN IN THE DEAL.
DAVID, I THINK 100. I DON'T I DON'T SEE THE PART.
WE MAY QUALIFY FOR MORE THAN 150 MILLION, BUT WE ARE RIGHT AT THE LIMIT AT 150.
SO UP THERE. SO IF YOU'RE LOOKING FOR NOT TO EXCEED NUMBER FOR US, COMING TO YOU IN MY MIND IS PRETTY CLOSE TO 150 IF WE COME IN WITH 147 GRADE, BUT IF IT'S 152, WE'RE PROBABLY GOING TO EAT THE 2 MILLION OUT OF RESERVES AND BORROW 150 IS WHERE I THINK WE ARE.
IN AN IDEAL WORLD, WE COULD HAVE HAD THIS MEETING EARLIER, BUT.
CALENDARS AND INFORMATION AVAILABLE.
JUST THIS IS WHERE WE ARE AND WE HAD SOME OF THIS MEETING CONTINUE TO DO IT.
THIS IS BETTER THAN 25 LAST YEAR.
IT'LL BE BETTER ON THE NEXT ONE.
EXACTLY WHAT IT WAS GOING TO BE.
HOW MANY MORE WILL THERE BE? PROBABLY NONE OF MY TERM.
JUST REAL QUICKLY. I WANT TO INTRODUCE, LEWIS BACK HERE.
LEWIS IS THE A OF VA WHO'S DONE THE CRUISE TERMINAL TEN, AS WELL AS, CRUISE TERMINAL 25, AND IS ALSO ARE WELL INTO THE CONTRACT ON CRUISE TERMINAL 16.
SO I JUST WANT TO INTRODUCE LEWIS.
LET ME MENTION THE WHARF BOARD.
YOU CAN CRITICIZE THE PORT MANAGEMENT.
AND THE BOTTOM LINE IS THEY NEED A LITTLE BIT OF A BREAK.
WE'VE BEEN RUNNING THEM IN A SUCH A FAST PACE.
THEY NEED A LITTLE BIT OF A BREAK TO GET THE MENTAL HEALTH BACK.
AND DON'T FORGET ABOUT THE WEST END.
YEAH THEY'RE DOING A LOT OF WORK.
CNM MANAGER NOW WE HAVE SOMEBODY WHO'S GOING TO BE WORKING JEFFERSON DOING THAT DOUBLE DUTY.
SO NOW WE HAVE A NEW PERSON COMING IN.
WANT TO DO ANY NOTHING BUT CONSTRUCTION OF ALL THINGS.
OKAY. OH MY GOD, WHAT CAN I TELL YOU? THAT'S ALMOST KNOCKED HIM OUT.
COUNCIL. LET ME LET'S LET'S COME THAT HANDICAP.
AND SO LET'S BRING BRING THIS BACK.
LET ME LET ME SAY ONE MORE THING, OKAY.
THE BOND FINANCING COULD BE LESS IF WE DECIDE THAT THERE'S A PLAN FOR THE CITY TO PARTICIPATE IN THE CONSTRUCTION OF THE PARKING DECK.
WE. AND THAT'S ON THE AGENDA, ISN'T IT? THE PARKING DECK IS, CONCERNING THE PARKING GARAGES ON THERE.
THERE HAS BEEN DISCUSSIONS WITH CITY STAFF ABOUT THE POSSIBILITY OF THE CITY PARTICIPATING WITH A THE BUILDING OF THE PARKING GARAGE THERE.
THAT IS SOMETHING THAT THAT'S IN THE INFANCY STAGES STILL AND THAT'S STILL ONGOING BETWEEN STAFF RIGHT NOW ON THAT IF WE MOVE FORWARD WITH THAT IN ANY WAY BEFORE THAT TOOK, REALLY TOOK OFF, THAT WOULD COME TO COUNCIL HERE AND COUNCIL WOULD HAVE TO WEIGH IN TO GIVE DIRECTION ON WHAT IF YOU FEEL WE NEED TO MOVE IN THAT DIRECTION HERE.
WELL YEAH. LET'S LET'S, LET'S YEAH, LET'S, LET'S WORKSHOP THAT PRETTY DARN QUICK IF THAT'S GOING TO WE'RE GOING TO HAVE THE OTHER ON THAT WE HAVE OUT THERE BREAKING GROUND ON A PARKING GARAGE IN JULY.
LET'S LET'S NOT WAIT TILL JUNE.
EXCUSE ME. THAT'LL BE PROBABLY THEY HAVE THEIR NEXT MEETING I THINK THIS WEEK.
VIC OR MAYBE NEXT WEEK ON THE PARKING GARAGE.
OH, THE THE YES, ON THE NINTH, I THINK IS THIS FRIDAY AND ISN'T IT.
ANYWAY, IT'S HAPPENING NOW, OKAY.
YES, SIR. WE'LL HAVE THAT TO YOU IN FEBRUARY IF THAT NEEDS TO MOVE FORWARD.
OKAY. THE OTHER THING IS I, WE TALK ABOUT GETTING INFORMATION TO COUNCIL.
AND IN FAIRNESS TO THE BOARD, WE HAD THIS WE HAD A MEETING ON THIS IN NOVEMBER.
SO AND HERE WE ARE IN EARLY FEBRUARY DOING IT AGAIN.
LET'S DO IT AGAIN EARLY APRIL.
LET'S SEE WHERE WE ARE. I MEAN I DON'T I DON'T WANT TO WE LET'S NOT LET THIS GET AWAY FROM US.
YOU KNOW, THAT'S OUR PLEDGE TO YOU.
[01:20:02]
LET'S KEEP LET'S KEEP THAT CONVERSATION GOING.IT'S CRITICALLY IMPORTANT THAT NOBODY GETS SURPRISED.
SO BE BEFORE ELECTION BE KNOW I KNOW FOR ME IT'S A LOT OF HEY BUT I'M JUST SAYING MIKE YEAH, YEAH.
ONE THING I'D LIKE TO, TO BRING UP IS THAT YOU PUT IN THERE FOR THE, SECTION 305 IS THE CITY FEE OF $0.25 PER PASSENGER MOVEMENT, WITH THE SAME ADJUSTMENTS FOR YOUR PORT WHARFAGE.
AND IT LOCKS THE CITY INTO $0.25, PLUS ADJUSTMENTS FOR THE ENTIRE TERM OF THE AGREEMENT.
I BROUGHT THIS UP LAST NOVEMBER, AND I'M GOING TO SAY IT AGAIN, I'D LIKE TO MAKE THE RECOMMENDATION THAT WE CONSIDER LOOKING AT DOING A BASE RECOVERY FEE FOR BOARDINGS ACROSS ALL CRUISE LINES, NOT ON A CONTRACT BY CONTRACT BASIS.
AND THE REASON THAT I'M SAYING THAT IS THAT I KNOW THAT THERE MAY BE SOME COMPLICATIONS IN TERMS OF HOW YOU'RE ENFORCING IT WITH YOUR CRUISE LINES, BUT I'D LIKE TO SEE THAT KIND OF AT A GLOBAL LEVEL SO THAT YOU'RE, YOU'RE YOU'RE APPLYING THAT EQUALLY ACROSS ALL BOARDINGS RATHER THAN ON A CRUISE CRUISE LINE.
BECAUSE IT IS IT IS FOR EVERYBODY THOUGH.
YEAH. IT'S ACROSS THE BOARD RIGHT NOW.
YEAH. WELL YEAH. SO NO, THERE'S NO BASELINE HERE.
THAT'S MY THAT'S MY CARNIVAL WAS PAYING TURN OF THE CENTURY.
SO ANYWAY, I'D JUST LIKE TO MAKE MENTION OF THAT.
MR. CHAIRMAN, YOU MIGHT BE SOMETHING TO TO CONSIDER WITH THE TRUSTEES.
AND WHEN YOU SAY YOU, PARTICIPATION FROM THE CITY IN A PARKING GARAGE, WHAT IS THE INCENTIVE FOR THE CITY PROFITS? THAT'S WHAT WE'D HAVE TO WORKSHOP.
THAT'S WHAT WE'D HAVE TO WORK OUT IF WE'RE.
IF THAT MOVES FORWARD, THE CITY MIGHT PARTICIPATE IN, PROVIDING FUNDS FOR THE BUILDING OF THE GARAGE AND PARTICIPATE IN A PRO-RATA SHARE EQUAL TO THE REVENUES ON THAT, TOO.
WE DON'T HAVE TO GET INTO THAT. BUT WHY WOULD THE PORT OR THE WHY WOULD EITHER ONE OF US WANT TO DO THAT ONE WAY OR THE OTHER? FROM THE PORT'S PERSPECTIVE, WE WANT TO BE GOOD PARTNERS.
IT WAS DONE AS A BE A LOT OF REVENUE FOR THE CITY AS A TAXPAYER OF THE CITY.
BUT BUT IT WOULD ALSO REDUCE SUPPORTS BOND LIABILITY IF WE WERE PARTICIPANTS IN THAT.
WELL THAT'S A IT REDUCES REVENUE TOO THOUGH.
WHAT'S THAT. IT REDUCES REVENUE TO TO THE PORT.
TO THE PORT. IT INCREASES IT TO THE CITY.
ARE WE TALKING ABOUT LIKE WE THOUGHT YOU GUYS LIKE REVENUE.
SO IT WOULD STILL REDUCE THE PORT'S BONDING CAPACITY.
YOU'RE RIGHT. LET'S PUT IT THIS WAY.
IF YOU IF YOU LET'S SAY YOU PUT IN $10 MILLION.
NO, NO, NO, NO. THEN THE BOND GOES DOWN TO ONE COUNCIL.
THAT'S A DISCUSSION COMING UP AT A FUTURE MEETING HERE THAT'S NOT ON OUR AGENDA.
COUNCIL I'M GOING TO, BUT, VIC, IF IT'S ALL RIGHT, I WOULD LIKE TO KIND OF WIND UP THIS DISCUSSION.
I WANT TO DOVETAIL ON SOME OF THE COMMENTS THAT SOME OF YOU HAVE MADE.
THIS IS AN IMPORTANT MEETING TODAY.
IF COUNCIL HAS ANY RESERVATIONS AND DOESN'T WANT TO MOVE FORWARD WITH THIS CONTRACT, BECAUSE IF THE WHARVES BOARD APPROVES THIS CONTRACT THIS AFTERNOON, THEN WE'RE THEY'RE PRETTY WELL LOCKED IN TO COME BACK.
SO IF YOU HAVE CONCERNS COUNCIL, WE NEED TO KNOW THOSE.
NOW I KNOW THERE'S BEEN SOME VERY GOOD QUESTIONS HERE MIKE I'VE GOT QUESTIONS.
WE JUST NEVER GOT INTO MY QUESTIONS.
SO MY FIRST CONCERN IS THAT THERE'S NO SKIN IN THE GAME FOR MSC.
THEY HAVE NO MONETARY OBLIGATION.
THERE'S THEY'RE NOT PUTTING ANY MONEY UP.
SECOND CONCERN IS, IS THAT WE'RE ONLY AT 60% OR 30% ON ENGINEERING.
AND, WE GOT A TIGHT SCHEDULE TO MEET A, SUBSTANTIAL COMPLETION, WHICH HAS A PRETTY STEEP PENALTY ON IT. DOES MSC CAN THEY SUBLET? LET'S LET'S GO THROUGH YOUR QUESTIONS, MIKE, BECAUSE WE'RE GETTING THEM.
LET'S DO YOUR FIRST QUESTION ON THAT THAT THEY'RE GOING TO FUND US 83% OF OUR TERMINAL COST.
SO THEY DO HAVE SKIN IN THE GAME.
AND THEIR GUARANTEE OF THE 600,000 AT $12 AT 7.2 MILLION A YEAR.
AND THEIR WE'VE THEIR CREDIT BACKGROUND IS OUTSTANDING.
THEY'RE THE LARGEST, SHIPPING COMPANY IN THE WORLD.
THEY'RE PRIVATELY OWNED, BUT THEIR CREDIT IS TOP NOTCH.
SO THEY THEY'RE GOING TO COME TO US THE WITH THE REVENUE TO HELP US, BE ABLE TO PAY BACK OUR BONDS.
SO THEIR SKIN IN THE GAME IS NOT CASH DOWN, BUT IT'S THE GUARANTEE OF THAT PAYMENT.
[01:25:02]
SO THAT HELPS US GET OUR FINANCING RIGHT.BUT WE HAVE A I DON'T WELL I'LL DEBATE IT A LITTLE BIT.
WE HAVE A MARKET HERE THAT IS PROVEN.
WELL, IF WE IF THEY HAD THEIR WAY, THEY WOULD BUILD IT AND IT WOULD BE THEIR TERMINAL.
YEAH, THAT WOULD BE THAT'S WHAT THEY WANT.
BUT WE WANT THE PROFIT OFF THE TERMINAL.
I MEAN, YEAH, THEY PREFER THE ROYAL CARIBBEAN.
THEY'D RATHER HAVE THAT. THEY'D RATHER OWN IT AND LEASE OR LEASE THE LAND FROM THE THEIR.
AS MY UNDERSTANDING MSCS THAT PRIORITY WOULD BE TO LEASE THE LAND AND OWN THE TERMINAL AND THEN THEY COULD I THINK WE JUST DIDN'T WE JUST LEARN THIS THAT ROYAL CARIBBEAN DOESN'T OWN ANYTHING.
SO SO LET'S NOT USE THAT AS A, AS A, AS A LEVER HERE.
BUT WE DISCUSSED THAT BACK IN DECEMBER OF 2019.
AND AT WHICH TIME I WILL TELL YOU CHAIRMAN OF THE WHARF BOARD STOOD IN FRONT OF ME AND THE MAYOR AND SAID IT'LL BE ON THE, IT'LL BE ON THE TAX ROLLS, I GUARANTEE YOU THAT HAPPENED. I DON'T, I WASN'T THE CHAIRMAN SO IT WASN'T, THAT WASN'T THE WAY IT WAS DISCUSSED AT THAT WORKSHOP MEETING.
WELL IT SURE SEEMS THAT YOU CAN WATCH SOMEHOW VIDEO SOMEHOW, SOMEHOW THAT CONCEPT GOT INTO CAD SOMEPLACE NOW, DIDN'T IT? WELL, THEY PUT IT ON AS A PARTIAL COMPLETE FOR ONE YEAR BASED ON WHAT I THINK IS PROBABLY NOT.
WELL, I'M NOT GOING TO CHARACTERIZE WHATEVER WHATEVER THE CASE IS, MR. BROWN, LET'S NOT TALK ABOUT THEM OWNING IT AND PUTTING IT ON ON THE TAX ROLLS.
THE CITY WOULD BE ALL ON BOARD.
BUT WE KNOW BETTER THAN THAT, RIGHT? WELL, BUT LET'S NOT SELL THAT.
LET'S NOT USE THAT AS A SELLING POINT.
NO, BUT AND I APOLOGIZE FOR THAT DIGRESSION, BUT BASICALLY GOING FORWARD WITH THE WITH THE PORT, WITH THE WHARVES, BUILDING IT AND OPERATING IT, THERE WOULD BE A THERE'LL BE, AFTER JUST A VERY SHORT TIME, A GROWING DELTA OF ANNUAL REVENUE BETWEEN THE TWO THAT BENEFITS THE PORT.
OH MY. YEAH I KNOW I'M NOT COMPLAINING ABOUT THAT.
YOU HAD A SECOND. WHAT'S YOUR SECOND QUESTION.
IS DOES MSC CAN THEY SUBLET THEIR, THEIR DATES FOR OTHER CRUISES.
NO. SO NOT OTHER CRUISE LINES, JUST THEIR OWN CRUISE.
I MEAN, I CAN SUBLET AS MANY AS.
NOT ON THEIR. THEY CONTROL THEIR DATES, BUT THEIR DATES.
THEY CAN ONLY PUT THEIR SHIPS THERE.
THEY CAN'T. YES, THAT IS RIGHT.
OKAY. YOUR OTHER QUESTIONS, MIKE? WATER AND SEWER.
DO WE KNOW WHERE THE, WATER AND SEWER LINES ARE AND HOW WE'RE GOING TO DO? IS IT GOING TO AFFECT ANYTHING ELSE OUT THERE IF YOU'RE GOING TO HAVE TO MOVE STUFF? I MEAN, YOU GOT ANY COMMENTS ON THAT? I MEAN, YEAH.
WE WILL HAVE WATER AND SEWER IN THE TERMINAL AND I'LL TRY TO ADDRESS THIS FIRST CLASS.
YEAH, I DON'T KNOW. I MEAN, SO I IT'S OBVIOUSLY THIS IS WHAT'S, WHAT'S BEING ENGINEERED AT THIS POINT, BUT BUT AS YOU ALL MAY OR MAY NOT KNOW, THE PORT HAS ITS OWN WATER SYSTEM THAT GETS WATER FROM THE CITY AT IT'S NOW SEVEN METERS.
AND SO AS PART OF AND WE HAVE THE SAME PROBLEM THAT THE CITY HAS OLD LINES.
AND SO AS PART OF THE ROYAL FACILITY, WE DEVELOPED A NEW WATER LOOP THAT COMES AROUND HERE.
AND SO AS PART OF THIS PROJECT, WE'RE GOING TO BE TAKING SOME WATER FROM FROM THAT WATER LOOP, AS WELL AS SOME FROM THE EXISTING WATER LOOP THAT RUNS FROM THE WEST END TO THE PORT, THROUGH PIER 19.
SO THAT BRINGS MY SECOND QUESTION.
HOW IS THIS GOING TO AFFECT THE THE THE TENANTS AT PIER 19 AS FAR AS WATER? WELL, I MEAN, IF YOU'RE TYING INTO A SYSTEM, YOU JUST POINTED TO THEIR PARKING LOT.
SO I MEAN, THAT'S GOING TO AFFECT THEM SOMEHOW.
YEAH, THAT'S I MEAN, AND SO, SO THAT'S A PORT OWNED PARKING LOT.
AND IT'S WE'RE GOING TO BE TYING IN DOWN HERE IN THIS CORNER LIKELY.
WILL THE IMPACT OF THE WATER LINE VERSUS A BOX CULVERT.
CAN YOU HOLD THE MICROPHONE? SORRY. THE IMPACT OF THE WATER LINE VERSUS THE BOX CULVERT, I WOULD THINK THE WATER LINE WOULD BE A MINIMAL IMPACT.
IT'S TYPICAL CIVIL CONSTRUCTION.
RIGHT. AND IS THAT ALL NEW CONCRETE AND EVERYTHING THAT YOU JUST POINTED TO WHERE? HERE IN THAT PARKING LOT, IT'S ASPHALT.
IS IT NEW? ONLY THE PART THAT THE 18TH STREET PROJECT.
OKAY. PUT IN. ALL RIGHT, SO I HEAR YOU SAYING THAT THE TENANTS AND EVERYBODY ON PIER 19 ARE NOT GOING TO BE AFFECTED BY ANYTHING THAT HAPPENS AFTER OR DURING THE BUILD.
[01:30:07]
PROJECT LIMIT THERE.SO IF YOU TAKE UP TEN OF THEIR PARKING SPOTS, THAT'S THAT'S A PRETTY SUBSTANTIAL PROBLEM.
YEAH. WHEN WE I MEAN WE'VE WE'RE WORKING I KNOW, I KNOW THEY'RE, THEY'RE HOMEGROWN BUSINESSES.
THEY DON'T THEY THEY WORK ON MONTH TO MONTH AND WE HAVE TO WATCH OUT FOR THEM.
AND, AND WHEN YOU TELL THEM BRIEFLY WHAT WE DID HERE JUST TO HELP THEM.
BUT RIGHT NOW IT ONLY GOES FROM 20TH STREET TO 17TH STREET.
AND WE OPENED UP LANES OF THAT THAT THEY COULD PARALLEL PARK TO.
SO THAT'S ONE MITIGATION FACTOR THAT WE COULD GO DOWN THERE RIGHT NOW.
YOU'LL SEE THAT WE OPENED UP THE MAIN ROAD, THE INTERNAL ROAD NETWORK, SO THEY COULD PARK THERE.
THAT WAS THERE. AND SOME OF THAT IS BECAUSE SALLY SMITH'S TEARING THAT BUILDING DOWN TOO, YOU KNOW.
THEY'LL HAVE HOW MANY SPACES OVER THERE, JEFFREY AND LIPTON TEA.
300 AND SOMETHING I'VE HEARD 300 I IT'S NOT RIGHT ACROSS THE STREET FROM THE PAIN IS DURING THE CONSTRUCTION TO YOUR POINT DURING THE CONSTRUCTION PERIOD, EVERYBODY'S GOING TO FEEL SOME PAIN. THERE'S TALK ABOUT THEM ABOUT US MANAGING THAT PROPERTY FOR THEM.
ALL RIGHT. ANY MIKE, GO RIGHT AHEAD.
SO HOW DOES THE WHOLE CONTRACT AND THE BUILDING OF THIS, BENEFIT THE RESIDENTS OF GALVESTON IN A WHOLE? WELL, YOU GET, WHAT? WE FIGURE OUT ADDITIONAL REVENUE OFF THE 600,000.
IT'S GOING TO BE ONE OR THE OTHER.
AND THAT'S GOING TO BE A SIGNIFICANT AMOUNT OF MONEY.
AND OUR YOU GOT SALES TAX ON THE SALES TAX.
WE SEE IT JUST LIKE WHEN CRUISE TERMINAL TEN.
AND I'LL JUST REGRESS A LITTLE BIT.
AND IT HAS NOT BEEN WE DID NOT REALIZE ANY NEGATIVES ON TRAFFIC, BUT YOU CAN SEE THE REVENUE THAT THE CITY IS RECEIVING FROM THE PORT HAS RISEN FROM LESS THAN 200,000 TO.
ROGER. WHAT WAS IT LAST YEAR? 1.6, 1.6.
I SEE IT GOING UP TO OVER 2 MILLION, PROBABLY MORE NORTH OF THAT, SIGNIFICANTLY.
SO WE'RE TRYING TO BE GOOD PARTNERS.
I MEAN, WE DON'T HAVE TO DO THAT.
OUR DEAL WAS TO HAVE THAT AS AN OPPORTUNITY TO SHOW GOOD FAITH WITH THE CITY AND THE RESIDENTS.
AND I HAD A COUPLE OF MORE THINGS TO THAT.
SO THOSE TRUCKS WILL NO LONGER BE ON THE ROAD THAT FAR EAST.
THEY'RE NOT GOING TO BE SITTING THERE.
AND THEN ONE OF THE THINGS THAT WE'RE DOING RIGHT NOW IS TALKING ABOUT, A BEAUTIFICATION PLAN FOR THAT AREA DOWN THERE.
BECAUSE THERE'S A, THERE'S WE SEE THAT AS A HUB.
I MEAN, I DO ANYWAY. I SEE THAT AS A NEW HUB ON THE PORT WHERE, YOU KNOW, THERE CAN BE SOME OPEN AREA THERE FOR, FOR A PARK, THERE CAN BE SOME, YOU KNOW, IF THE USS TEXAS GOES IN THERE, YOU'RE GOING TO HAVE THOSE PEOPLE COMING IN THERE AND YOU'LL SEE.
AND ONE OF THE THINGS WE'VE LOOKED AT IS, IS HOW CAN WE MAKE THIS A GOOD, INTERSECTION BETWEEN THE STRAND AND THE PORT AND MAKE IT NICER AND SAFER.
YOU KNOW, ONE OF THE OTHER THINGS ABOUT THE TRAFFIC, BOTH US AND THE CITY GOT, SAFE STREET GRANT, WHICH IS A I THINK IT'S ROUGHLY AROUND $400,000 ON OUR SIDE.
AND PART OF THAT WILL BE USED FOR MAKING THE, INTERSECTIONS, BECAUSE ONE OF THE THINGS WE HAVE IS A COMMONALITY OF OF OF 16 AND HARBORSIDE DRIVE.
AND, YOU KNOW, WE ARE DESIGNING THAT'S PART OF OUR, OUR, CONTRACT IS TO DESIGN THAT.
AND THEN YOU ALSO NOW HAVE GOTTEN MONEY FOR THAT FOR THE FOR 16TH STREET LIGHT.
[01:35:05]
SO WE'RE HOPING TO WORK TOGETHER.AND SO I MEAN, I, I MEAN I'VE, I'VE, I BELIEVE THAT WE'VE GOT A PLAN IN HERE.
AND THAT CAN MAKE THIS A NICE OPEN AREA THAT THE CITY AND THE PORT AND EVERYBODY CAN BE PROUD OF AND AND WILL BE SAFER. THOSE ARE THOSE ARE THINGS THAT WILL HELP THE COMMITTEE.
AND I THINK THAT'S A GOOD QUESTION THAT YOU HAVE.
I'VE BEEN ON COUNCIL ALMOST TEN YEARS.
AND THAT QUESTION COMES UP EVERY YEAR.
IT DOESN'T APPLY NOT IT NOT ONLY APPLIES TO THIS PROJECT THAT WE'RE TALKING ABOUT IT IT APPLIES TO THE ENTIRE OPERATION OF THE PORT, EVERYTHING OVER THERE, CARGO, EVERYTHING.
YOU COULD ASK THAT SAME QUESTION.
COUNCIL MAY 1ST DAY AND THAT COULD COME UP SOON.
MAY WANT TO SIT DOWN AND LOOK AT THAT WHOLE QUESTION.
IT INVOLVES CHANGING THE PILOT FOR THE PORT THAT THEY CURRENTLY PAY.
IT INVOLVES A LOT OF OVERARCHING ISSUES THAT WE NEED TO LOOK AT POSSIBLY.
AND BUT THAT QUESTION HAS BEEN HERE.
RELIEF. RELIEF ON THE GENERAL FUND IS ALWAYS TOP OF OUR MIND.
WE ALWAYS THINK OR ALWAYS THINKING ABOUT THAT.
BUT I JUST HAVE TO MAKE A COMMENT ABOUT PARKING.
I WAS A BIT OF A CONVERT ON PIER TEN, BECAUSE I WAS REALLY CONCERNED ABOUT THE IMPACT OF THE TRAFFIC DOWN THERE, AND BUT BUT THE KEY THERE WAS THAT IT GOT 550 HEAVY, HIGH AND HEAVY TRUCKS OFF THAT END OF HARBORSIDE EVERY, EVERY, EVERY WEEK.
SO, YOU KNOW, THE, THE OCCASIONAL BOTTLENECKS AT 14TH.
BY THE WAY, THE 14TH STREET GATE, I THINK IS JUST EXCELLENT.
SO I WE DIDN'T, YOU KNOW, PARKING OR TRAFFIC IS ALWAYS THE BOOGEYMAN IN THESE CONVERSATIONS.
BUT WE DIDN'T REALLY SEE THAT AT PIER TEN.
BUT WE DON'T HAVE THAT KIND OF FLEXIBILITY.
IT'S NOT YOU KNOW, THIS IS A TIGHTER AREA.
YOU KNOW, SO THE MORE YOU CAN KEEP IN, IN INBOARD, THE BETTER OFF WE ALL ARE.
AND THAT'S WHAT WHEN I WAS, WHEN I WAS TALKING ABOUT THAT, WHEN I WAS POINTING OUT THE RAIL ALONG HARBORSIDE DRIVE COMING UP ALLOWS MORE SPACE FOR QUEUING BECAUSE THAT'S WHAT THIS IS, IS IT'S QUEUING.
IT'S GIVING SPACE OFF OF HARBORSIDE DRIVE TO THE CUSTOMER.
DO WE START BRINGING IN PEOPLE FROM 16TH EVEN FURTHER WEST? YEAH. AND BRING THEM ALONG THAT WHOLE CORRIDOR THERE BECAUSE WE'VE GOT FUNDS FOR THAT.
I KNOW THIS HAS GOT TO BE FRONT AND CENTER.
BUT, YOU KNOW, MORE TRAFFIC TONIGHT.
I MET WITH TILMAN FERTITTA SATURDAY OKAY.
THIS ISSUE WAS ONE THIS AND THE USS TEXAS.
I MEAN, BECAUSE THAT COULD REALLY BE SOMETHING NICE IF WE IF WE LOOKED AT IT AND PLANNED IT.
RIGHT. IT'S THOUGHTFULLY PLANNED THIS YEAR, MORE THAN LIKELY.
BUT YOU KNOW WHAT? WE DO HAVE TO THINK ABOUT THAT ON THE PARKING DECK, ON HOW THAT AFFECTS THAT WHOLE AREA DOWN THERE.
AND HE WAS HE WAS VERY MUCH ON BOARD WITH TRYING TO MAKE SOMETHING NICE, NICER DOWN THERE.
AND, YOU KNOW, OBVIOUSLY, I MEAN, HE'S A BUSINESSMAN.
THAT'S A TREMENDOUS POTENTIAL, THAT AREA.
THERE'S NO DOUBT WE HAVE WILLIE, JEFF AND JIM JUST REAL QUICK.
ALSO, MIKE, WHAT YOU ASKED, WHAT'S IT GOING TO DO FOR THE CITIZENS? AND IF I'M JUST I DON'T KNOW, THESE NUMBERS, BUT IF A SMALL PERCENTAGE OF PEOPLE COME HERE AND STAY THE NIGHT BEFORE AT A HOTEL, OUT OF THE MANY PEOPLE THAT ARE CRUISING RIGHT NOW, WE'RE INCREASING THAT BY 600,000 MINIMUM A YEAR, IF THAT.
YOU KNOW, IF THEY IF THAT NUMBER EVEN STAYS THE SAME, WE'RE LOOKING AT A WHOLE LOT MORE HOTEL STAYS, RESTAURANT, BUSINESSES DOWNTOWN MECHANIC AND STRAND THAT DO WELL FROM IT. SO, YOU KNOW, THAT'S THAT'S ANOTHER BENEFIT.
JEFF. YEAH, JUST TAG ON SOME OF THE CONVERSATION ABOUT THE BEAUTIFICATION.
IF YOU ALL HAVE SEEN THE WORK AS MARTINA OR MARINA.
MARINA, MARINA THAT'S DONE WITH THE MITCHELL FOUNDATION.
[01:40:09]
USED TO SAY, YOU GOT TO KNOW THE DIFFERENCE BETWEEN A VISION AND A HALLUCINATION.WHAT'S THE HOW FAR DO YOU GO? BUT IT'S DONE SOME REALLY COOL LOOKS AT WHAT YOU COULD DO WITH THE WATERFRONT, WITH HARBORSIDE, WITH SOME OF THE, YOU KNOW, PARKING SPACES THAT MAYBE, YOU KNOW, ONCE WE BUILD PARKING DECKS, THEY CAN BECOME OPEN SOME OF THE CONVERSATION THERE.
SO I THINK THERE'S SOME REAL EXCITING POSSIBILITIES.
AND I THINK WE'RE HAVING HER AND CHRIS COME.
I THINK IT'S IN MARCH. WE'RE GOING TO.
MAYBE, BUT EITHER FEBRUARY OR MARCH.
FEBRUARY. YEAH I THINK I THINK IT'S ACTUALLY GOING TO BE MARCH.
I THINK CHRIS WASN'T AVAILABLE.
BUT AND I THINK WE'VE TALKED ABOUT THIS REAL ESTATE COMMITTEE FORMING UP.
AND I THINK PROBABLY ALSO IF THEY COULD, I DON'T KNOW WHAT POINT COUNCIL WOULD WANT TO SEE THAT.
BUT IF YOU SEE THE THE PLANS AND WHAT'S POSSIBLE, I MEAN, AND AGAIN, THAT VISION VERSUS HALLUCINATION THAT IT MAY NOT BE BECAUSE WE'RE TRYING TO RESTRICT HARBORSIDE TO TWO LANES AND MAKE IT WALKABLE. AND HOW DOES THAT ALL WORK INTO THE FLYOVERS AND ALL? I MEAN, THERE'S A WHOLE, YOU KNOW, HOST OF THINGS THERE.
SOME MAY OR MAY NOT BE POSSIBLE, BUT I THINK IF YOU DON'T PUT THOSE IDEAS OUT THERE AND WE START BUILDING THEM INTO ALL THESE INDIVIDUAL THINGS WE'RE TALKING ABOUT, YOU NEVER GET THERE. SO I THINK THERE ARE SOME REAL EXCITING POSSIBILITIES.
WHERE DO WE BUILD IT? HOW DO WE USE THE SPACE THAT THAT FREES UP? I THINK THERE'S ALL SORTS OF COOL OPPORTUNITIES.
SUCH AS, SUCH AS EXAMPLE WOULD BE BUILDING A BOARDWALK FROM CRUISE TERMINAL 16 ALL THE WAY TO CRUISE TERMINAL 25, THAT WHOLE COVERING THAT WHOLE AREA ALONG THE WATERFRONT.
AND, YOU KNOW, PEOPLE LOVE TO LOOK AT BOATS AND STUFF THAT ARE THERE.
AND SO I THINK THERE'S A LOT OF A LOT OF GOOD THINGS THAT CAN HAPPEN.
THAT'S A WAY TO, YOU KNOW, HOW DO YOU WHAT IN THERE FOR THE PUBLIC? I THINK THAT ALL THING STARTS, YOU KNOW, WE JUST HAVE TO KEEP WORKING IT AND KEEP KEEP IT IN FRONT OF US.
RIGHT. THAT'S, LET'S, LET'S I DON'T THINK JIM EVER GOT HIS.
JIM NEVER GOT A CHANCE. AND WE'RE GOING TO.
VIC, I'M GOING TO TURN IT OVER TO YOU AFTER JIM'S THING TO SEE HOW WE CAN WIND THIS UP.
I JUST QUICKLY UNDERSTAND WE OUGHT TO GIVE THEM THAT REPORT THAT MARINA AND MITCHELL PRODUCED.
WANT TO SEND IT OVER? ROGER. SEND IT TO CITY SECRETARY.
AND I'M NOT TALKING FOR THE REST OF THEM, BUT, BOTH.
CORRECT. AND THAT THAT CAN'T BE DECIDED UNTIL WE FIGURE OUT WHAT THE BIG PICTURE LOOKS LIKE.
AND ONCE THAT HAPPENS, ROGER ALLUDED TO IT.
THEN ALL OF A SUDDEN, TILLMAN'S GOT THOSE PARKING LOTS UNDER HIS LEASE THAT ARE NO LONGER NEEDED.
OH, ABSOLUTELY. I TOTALLY AGREE WITH YOU.
AND SO TO THAT END, YOU ALL SHOULD BE CHALLENGED TO FIND THE HIGHEST AND BEST USE FOR THAT PROPERTY, BOTH FOR THE BENEFIT OF THE PORT, BUT ALSO FOR THE BENEFIT OF THE CITIZENS OF GALVESTON.
I MEAN, YOU'RE BRINGING FORWARD AN OPTION WITH A PARKING GARAGE, YOU KNOW, FUTURE DEVELOPMENT.
I REALLY ENCOURAGE YOU ALL TO TAKE A REALLY HARD LOOK AT THAT.
WELL. RIGHT. I MEAN, AND THIS HAS ALWAYS BEEN IN YOUR MASTER PLAN.
BUT WHAT COMES NEXT, I THINK, IS GOING TO BE VERY, VERY IMPORTANT FOR THE CITIZENS OF GALVESTON.
100%. VIC, I'LL LET YOU KIND OF WRAP THINGS UP, AND THEN I'LL CLOSE FOR THE COUNCIL.
ITEM C, I DON'T HAVE ANY, BUT, OTHER THAN THAT, WE APPRECIATE THE OPPORTUNITY TO BE HERE.
IT'S ONE OF MY GOALS WAS TO INCREASE OUR PROACTIVENESS WITH THE CITY AND ALSO TO BENEFIT THE.
BECAUSE I AM A CITIZEN, OBVIOUSLY, OF THE CITY, TO FIND A WAY TO BENEFIT THE CITIZENS OF GALVESTON FROM THE FROM THE, WHAT THE PORT PROPERTIES ARE ABLE TO GENERATE. THANK YOU.
VIC, AND I WANT TO SAY TO THANK YOU, COUNCIL, FOR BEING HERE.
[01:45:02]
AND THE BOARD'S BOARD MEMBERS, YOU KNOW, IT SHOWS, I THINK, SITTING AROUND THIS TABLE FOR THE LAST HOUR AND 45 MINUTES OR SO, IT SHOWS WORKING TO.TOGETHER WHAT WE CAN ACCOMPLISH IF WE BOTH ARE WORKING IN THE SAME, SAME DIRECTION ON THAT.
SECOND OF ALL, WE'LL LOOK AT THAT WHOLE CONCEPT OF THE PARKING GARAGE AND THE CITY PARTICIPATING.
VIC, IF YOU WOULD LIKE TO CLOSE YOUR MEETING.
YES. THE THE JOINT MEETING WITH THE CITY FOR THE WATER BOARD IS ADJOURNED.
WE HAVE GONE THROUGH ALL OF OUR AGENDA ITEMS. CITY COUNCIL, WE ARE ADJOURNED.
AND THEN PHOTOGRAPHS OF THE SUBJECT PROPERTY.
* This transcript was compiled from uncorrected Closed Captioning.