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I THINK IT, I THINK, UH, ENOUGH COUNCIL PEOPLE HAVE DETERMINED THAT IT IS TIME TO START THE MEETING.SO, UH, LET'S START WITH ROLL CALL PLEASE.
COUNCILMAN SUPER COUNCILWOMAN KERR.
ALL RIGHT, WELL, THANK YOU SO MUCH.
WE'RE GONNA JUMP RIGHT INTO OUR STUDY SESSION.
THIS IS, UH, UH, A, A STUDY SESSION ON A PROJECT THAT'S BEEN WORKING.
WE'VE BEEN WORKING ON FOR A LONG TIME.
BACK IN THE DAY, WE USED TO HAVE REDEVELOPMENT IN THE CITY.
IT WAS A BIG TOOL FOR US WHEN CALIFORNIA ELIMINATED IT.
WE DIDN'T HAVE AS MANY TOOLS FOR HOUSING AND INFRASTRUCTURE AND OTHER THINGS UNTIL THE STATE OF CALIFORNIA ALLOWED, UH, US TO BEGIN A NEW FORM OF TAX INCREMENT FINANCING.
WE'VE BEEN EXPLORING IT FOR A LONG TIME, SO NOW WE'RE READY FOR AN UPDATE.
GOOD AFTERNOON, MAYOR AND CITY COUNCIL MEMBERS.
UH, THIS STUDY SESSION REPRESENTS AN IMPORTANT OPPORTUNITY TO EXPLORE A NEW APPROACH TO FINANCING LONG BEACH'S FUTURE.
AND IN 2019, THE MAYOR THEN CD NINE COUNCIL MEMBER BROUGHT FORWARD A MOTION TO EXPLORE THE CREATION OF WHAT THAT WAS KNOWN AS.
ECONOMIC EMPOWERMENT ZONES, NOW KNOWN, KNOWN AS THE ECONOMIC INFRASTRUCTURE FINANCING DISTRICT.
AND THESE DISTRICT IS A TOOL THAT LEVERAGES PUBLIC PRIVATE INVESTMENT, STRAINS OUR PARTNERSHIP WITH LOS ANGELES COUNTY, AND CREATES A NEW OPPORTUNITIES FOR ECONOMIC GROWTH FROM INFRASTRUCTURE IMPROVEMENTS, HOUSING, JOB CURATION, FROM DOWNTOWN CENTRAL WEST AIRPORT, SPACE BEACH, AND NORTH LONG BEACH.
THE TIMING OF THIS CONVERSATION COULD BE NOT MORE IMPORTANT.
BOTH THE CITY AND COUNTY ARE FACING SIGNIFICANT FISCAL CHALLENGES, RISING COSTS, AGING INFRASTRUCTURE, AND GROWING DEMANDS FOR PUBLIC SERVICE AND COMMUNITY INVESTMENT NEEDS.
WE CANNOT SIMPLY RELY ON TRADITIONAL FUNDING SOURCES ALONE TO MEET THESE CHALLENGES.
IF WE MUST BE MORE STRATEGIC, INNOVATIVE, AND COLLABORATIVE ON HOW WE LEVERAGE RESOURCES AND ATTRACT NEW INVESTMENT TO OUR CITY.
THAT IS WHERE ENHANCED INFRASTRUCTURE FINANCES, DISTRICTS EIFD PRESENTS AS SIGNIFICANT AN OPPORTUNITY.
I WANNA NOTE THAT AN EIFD IS NOT A NEW TAX, WHETHER IT'S A FINANC INSTITUTE THAT ALLOWS US TO CAPTURE THE PORTION OF FUTURE PROPERTY TAX, UH, GROWTH GENERATED BY NEW DEVELOPMENT AND REINVEST THOSE REVENUES INTO CRITICAL INFRASTRUCTURE AND COMMUNITY PRIORITIES, JUST AS IMPORTANT AS A PARTNERSHIP WITH LOS ANGELES COUNTY THAT COULD EX SIGNIFICANTLY EXPAND OUR FINANCING, FINANCING CAPACITY, ALLOWING US TO LEVERAGE BOTH CITY AND COUNTY RESOURCES TO TRACK ADDITIONAL PRIVATE INVESTMENT COMPETE FOR STATE AND FEDERAL FUNDING, AND ACCELERATE PROJECTS THAT MIGHT AUTHORIZE TAKE DECADES TO DELIVER.
AND WITH THAT, I WOULD LIKE TO INTRODUCE JOE DIEGO WITH COSMAN, WHO'S GONNA, UH, DELIVER A, A PRESENTATION ON AT THE ECONOMIC, I MEAN ENHANCED INFRASTRUCTURE FINANCING DISTRICT ANALYSIS.
THANK YOU BO, AND GOOD AFTERNOON MAYOR.
I BELIEVE, UH, MAYOR, YOU COVERED AND BO COVERED SIGNIFICANT, UH, PIECES OF THIS BACKGROUND INFORMATION.
I WILL REPEAT A COUPLE POINTS.
AGAIN, NONE OF THIS IS A NEW TAX.
NONE OF THIS IS AN INCREASE IN TAXES.
THIS IS A BUDGETING OF FUTURE DOLLARS THAT THE CITY COULD DO COMPLETELY ON ITS OWN.
BUT VERY IMPORTANTLY TO THIS THIRD BULLET POINT, BEAU MENTIONED THIS, IT'S ALSO ABILITY TO CAPTURE SOMEONE ELSE'S DOLLARS.
THE COUNTY, AS A POTENTIAL PARTNER TO THE CITY, WOULD BE ALLOCATING REVENUES FOR USE FOR PROJECTS WITHIN THE CITY.
AND THAT'S A KEY POINT OF, UH, POTENTIAL BENEFIT FOR A CITY GOING DOWN THIS PATH.
IF, UH, THIS DISCUSSION CONTINUES BEYOND TODAY, IMMEDIATE NEXT STEPS WOULD INCLUDE A, UH, POTENTIAL RESOLUTION OF INTENTION, A NON-BINDING ACTION, COMING BACK TO THE FULL CITY COUNCIL FOR ITS CONSIDERATION.
AND THEN THE COUNTY WHO HAS SO FAR EXPRESSED A LOT OF, UH, POSITIVE INPUT ON THIS.
UH, THEY WOULD TAKE A COMPANION MOTION AT THE BOARD OF SUPERVISORS, UH, UH, THEIR OWN RESOLUTION OF INTENTION.
UH, MAYOR, YOU COVERED THIS SO I WON'T BELABOR IT.
THIS IS A TYPE OF TAX INCREMENT FINANCING.
VERY IMPORTANTLY, AGAIN, NOT A NEW TAX, NOT AN INCREASE IN TAXES.
WHAT THIS IS, IS APPORTIONING A PIECE OF FUTURE GROWTH.
WE'RE NOT TOUCHING ANY OF TODAY'S DOLLARS, BUT APPORTIONING SOME PIECE, NOT ALL, SOME PIECE OF FUTURE PROPERTY TAX REVENUE WITHIN A SPECIFIC BOUNDARY AND PUTTING IT IN A SPECIAL FUND.
THOSE DOLLARS COULD ONLY BE USED FOR INFRASTRUCTURE, INFRASTRUCTURE AND AFFORDABLE HOUSING.
A KEY BENEFIT FOR THE CITY, IF YOU GO DOWN THIS PATH, IS THAT THE COUNTY WOULD MATCH YOU MUCH LIKE AN EMPLOYER MATCHING AN EMPLOYEE'S SET ASIDE IN THEIR RETIREMENT ACCOUNT.
THE COUNTY WOULD ESSENTIALLY ACT AS THAT EMPLOYER MATCH MATCHING YOUR DOLLARS FOR INVESTMENT WITHIN THIS CITY.
THEY ARE LONG TERM IN NATURE, THESE DISTRICTS MOST OFTEN LAST FOR 45 TO 50 YEARS.
GOVERNANCE IS A KEY POINT THAT
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I HAVE TO HIGHLIGHT.A NEW ENTITY WOULD GET SET UP TO GOVERN THIS DISTRICT.
IT'S CALLED THE PUBLIC FINANCING AUTHORITY.
THAT, UH, ENTITY'S FIRST JOB WOULD BE TO DIRECT THE PREPARATION OF A DOCUMENT.
IT'S CALLED THE INFRASTRUCTURE FINANCING PLAN.
AND THAT DOCUMENT REALLY LAYS OUT THE PLAN, HOW MANY DOLLARS ARE WE TALKING ABOUT OVER WHAT PERIOD OF TIME, WHAT WOULD GET FUNDED? AND VERY IMPORTANTLY, IT'S THAT PLAN THAT IS REQUIRED TO BE PRESENTED MULTIPLE TIMES OVER A SERIES OF REQUIRED PUBLIC MEETINGS, PUBLIC HEARINGS, EACH WITH THEIR OWN NEWSPAPER NOTICES, MAILING NOTICES, WEBSITE NOTICES.
AND THAT SAME PLAN HAS TO GO SEPARATELY TO THE FULL CITY COUNCIL, SEPARATELY TO THE FULL COUNTY BOARD OF SUPERVISORS.
AND ONLY THEN COULD IT COME BACK TO THAT PUBLIC FINANCING AUTHORITY TO PUT ITS FINAL STAMP OF APPROVAL, BECAUSE WE'RE NOT INCREASING ANYBODY'S TAXES.
THERE'S NO VOTE TO FORM ONE OF THESE.
BUT AT THE LAST PUBLIC HEARING, THERE IS AN OPPORTUNITY FOR RESIDENTS AND PROPERTY OWNERS WITHIN THE BOUNDARY TO FILE A PROTEST IF THEY WISH TO DO SO.
THE STATE LAW GOVERNS WHAT TYPES OF THINGS COULD BE FUNDED BY THESE TOOLS.
BROADLY SPEAKING, IT'S INFRASTRUCTURE AND AFFORDABLE HOUSING.
THE LAW HAS A DEFINITION OF INFRASTRUCTURE WITHIN IT, AND IT INCLUDES THE TYPE OF THINGS ON THIS PAGE, WATER, SEWER, TRANSIT, PARKS, LIBRARIES, CLEANUP OF CONTAMINATED LAND, BROADBAND, INTERNET, CLIMATE CHANGE INFRASTRUCTURE.
ALSO IMPROVEMENTS TO SMALL BUSINESSES, THINGS LIKE FACADE IMPROVEMENTS WOULD BE ELIGIBLE.
TWO COMMON THEMES THAT OUR FIRM AT COSMO SEES ACROSS THE STATE BY CITIES AND COUNTIES GOING DOWN THIS PATH.
NUMBER ONE IS RETURN ON INVESTMENT.
WE'RE NOT SEEING ANY CITY OR COUNTY GO DOWN THIS PATH IF YOU'RE NOT ACTUALLY GENERATING A POSITIVE IMPACT ON YOUR OWN GENERAL FUND.
THAT'S THE, THE MOST COMMON THEME.
ASIDE FROM THAT, WE SEE OTHER MEASURES OF RETURN ON INVESTMENT, THINGS LIKE HOUSING PRODUCTION, UH, JOB CREATION, THE WAGES ASSOCIATED WITH THOSE JOBS, AND OFTENTIMES JUST DEALING WITH INFRASTRUCTURE THAT NEEDS TO BE DEALT WITH, INFRASTRUCTURE THAT HOLDS UP PRIVATE SECTOR INVESTMENT.
THE SECOND POINT WE THINK IS LESS OBVIOUS.
IT'S THE ABILITY OF THESE DISTRICTS TO ATTRACT YET OTHER MONEY.
SO SPECIFICALLY, THERE ARE SEVERAL STATE PROGRAMS FOR HOUSING OR TRANSIT OR CLIMATE RESILIENCE INVESTMENT THAT ARE GIVING CITIES AND COUNTIES MORE POINTS ON THEIR GRANT APPLICATIONS EXPLICITLY IF THEY HAVE ONE OF THESE DISTRICTS IN PLACE.
THERE ARE ABOUT 43 OF THESE FORMED ACROSS THE STATE AS OF LAST NIGHT, THE 43RD WAS FORMED.
UH, AND THE LIST GROWS OF THE 43 13 ARE PARTNERSHIPS BETWEEN MULTIPLE ENTITIES LIKE CITIES AND COUNTIES.
MANY OF THOSE CITY COUNTY PARTNERSHIPS ARE ACTUALLY HERE IN LOS ANGELES COUNTY.
THIS COUNTY IS THE MOST WILLING TO ENTERTAIN THIS CONVERSATION AND THE MOST WILLING TO PARTNER WITH CITIES.
THEY UNDERSTAND THAT IF CITIES AND COUNTIES PARTNER AND INVEST IN THE INFRASTRUCTURE THAT UNLOCKS PRIVATE SECTOR INVESTMENT, EVERYONE WINS THE VALUATION OF PROPERTY GROWS, CITIES AND COUNTIES AND OTHER TAXING ENTITIES ALL SEE A BENEFIT AS THAT VALUE GROWS FROM PRIVATE SECTOR INVESTMENT.
A LOT OF WORK WAS PUT IN, UH, BY STAFF AND THE CONSULTING TEAM IN DESIGNATING WHERE WITHIN LONG BEACH, A FINANCING DISTRICT LIKE THIS MIGHT MAKE SOME SENSE.
METRICS USED WHERE THINGS LIKE THE GENERAL PLANNED LAND USE DESIGNATION, WHERE ARE THERE UNDERUTILIZED PROPERTIES? WHERE ARE THE DISADVANTAGED COMMUNITY CENSUS TRACKS, WHERE ARE, UH, SCAG PRIORITY GROWTH AREAS? WHERE IS THERE SPECIFICALLY PRIVATE SECTOR INVESTMENT PLANNED THAT CAN GENERATE NEW VALUE? ESPECIALLY WHERE THERE ARE THINGS LIKE INFRASTRUCTURE HOLDING UP THAT INVESTMENT.
THAT'S A HUGE PART OF HOW THESE BOUNDARIES WERE DEFINED.
IT IS VERY IMPORTANT TO NOTE THAT THE BOUNDARIES DEFINE WHERE THE VALUE IS CAPTURED, WHERE THE REVENUES COME FROM, BUT IT DOES NOT LIMIT WHERE THE DOLLARS CAN BE SPENT.
THE FUNDING CAN BE SPENT CITYWIDE.
IT DOES NOT NEED TO BE SPENT ONLY WITHIN THE FINANCING DISTRICT BOUNDARY.
THE DEFINITION OF THE BOUNDARY IS A LOT ABOUT GENERATING ENOUGH DOLLARS, BUT NOT OVEREXPOSING THE GENERAL FUND BY DRAWING THE BOUNDARIES SO LARGE THAT YOU'RE ESSENTIALLY TYING UP SO MUCH OF THE GENERAL FUND PROPERTY TAX, THAT THERE'S NOT ENOUGH LEFT JUST TO KEEP THE LIGHTS ON AND KEEP SERVICES GOING ON A DAY-TO-DAY BASIS.
IT DOES NOT LIMIT THE EXPENDITURE.
SO THE MAP AS IT SITS TODAY, AS IT'S BEEN REVIEWED SO FAR BY CITY AND COUNTY STAFF, IT'S FIVE GENERAL AREAS AND DIFFERENT COLORS.
ON THIS PAGE, IT TOTALS ABOUT 2,700 ACRES.
IN TERMS OF THE EXISTING ASSESSED VALUE, IT'S ABOUT 8.5% OF THE CITY.
OUR OWN WORK AT COSMO ACROSS THE STATE CONSIDERS THIS RANGE OF LIKE BETWEEN FIVE AND 10% OF YOUR CITY AS A, AS A HEALTHY BALANCE BETWEEN ITS LARGE ENOUGH TO JUST GENERATE ENOUGH DOLLARS FOR THE THING TO BE WORTH DOING, TO HAVE ENOUGH DOLLARS TO FUND PROJECTS, BUT NOT SO LARGE, AGAIN, THAT YOU'RE OVER ENCUMBERING YOUR UNRESTRICTED GENERAL FUND PROPERTY TAX LIMITING WHAT'S AVAILABLE FOR, UM, UNANTICIPATED USES, FISCAL EMERGENCIES, THINGS LIKE THAT OVER TIME.
SO, UH, A LOT OF ITERATION ON THIS, A SIGNIFICANT AMOUNT OF TIME OVER THE LAST FOUR TO FIVE MONTHS ESPECIALLY HAS BEEN SPENT BETWEEN CITY AND COUNTY STAFF GETTING IT TO A POINT WHERE
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AT LEAST THE COUNTY STAFF BELIEVES, UM, THE SUPERVISOR REPRESENTATIVES COULD, COULD SUPPORT SOMETHING LIKE THIS.IT WAS LARGER, IT GOT SHAVED DOWN.
A LOT OF WORK WAS PUT INTO MAKING IT LOOK JUST RIGHT.
UH, AND SO THE COUNTY IS SORT OF WAITING TO SEE IF THE CITY WOULD, UH, CONTINUE WITH IT AS DRAFTED BEFORE THEY AGENDIZE THEIR MOTION TO SUPPORT THE CITY.
SO IT'S HARD TO SEE AT THIS LEVEL.
SO I JUST IN A COUPLE PAGES, UM, I WON'T SPEND TOO MUCH TIME, BUT I'D AT LEAST LIKE TO LEAVE IT UP FOR A SECOND OR TWO JUST TO ZOOM IN ON EACH ONE OF THESE AREAS.
ZOOMED IN FOLLOWING PAGE IS THE ANAHEIM MESTER CORRIDORS FOLLOWING PAGE IS THE DOWNTOWN LONG BEACH BOULEVARD SUB AREA.
FOLLOWING PAGE IS NORTH LONG BEACH SANTA FE CORRIDOR ON THE WEST SIDE.
SO AGAIN, THE IDEA IS THE DOLLARS CAN BE SPENT CITYWIDE, NOT LIMITED TO WHERE THOSE FINANCING DISTRICT BOUNDARIES ARE DRAWN.
DISCUSSION SO FAR AT CITY AND COUNTY STAFF LEVEL IDENTIFIES SOME CATEGORIES ON THE LEFT HAND SIDE OF THE PAGE AND SOME MORE SPECIFIC INVESTMENT TYPES THAT, UH, MAKES SOME SENSE OR THAT STAFF THINKS MAKES SOME SENSE FOR POTENTIAL, UH, FUNDING BY THIS DISTRICT.
CATEGORICALLY ON THE LEFT HAND SIDE, THINGS LIKE SIDEWALK STORM DRAINS, PUMP STATIONS AND OTHER SEWER INFRASTRUCTURE, COMMUNITY CENTERS, SENIOR CENTERS, AFFORDABLE HOUSING GAP FINANCING, SEVERAL MEASURES OF THE GROW LONG BEACH INITIATIVE ON THE RIGHT HAND SIDE.
SOME SPECIFIC THINGS, CULTURAL CENTER IMPROVEMENTS, NORTH LONG BEACH AQUATIC CENTER.
THE IDEA WITH THESE, UH, THESE INFRASTRUCTURE FINANCING PLANS IS TO ERROR ON THE SIDE OF INCLUSIVITY.
GIVE YOURSELF SOME FLEXIBILITY.
IS IS GENERALLY WHAT WE SAY TO OUR CITIES AND COUNTIES.
IT'S A LONG-TERM DISTRICT, 45 TO 50 YEARS.
WE TRY TO SAY GIVE DON'T, DON'T OVER RESTRICT WHAT BECOMES ON THE LIST.
AND, UH, AND THE IDEA WOULD BE IF THIS WERE TO MOVE FORWARD, THERE'S THAT PLAN THAT GETS PREPARED.
THE INFRASTRUCTURE FINANCING PLAN AND, UH, OUR EFFORTS WITH CITY STAFF WOULD BE TO DRAFT THAT LANGUAGE QUITE FLEXIBLY TO ALLOW ROOM FOR THE UNEXPECTED IN THE FUTURE.
VERY IMPORTANTLY, THE IDEA IS THAT DISTRICT, THIS DISTRICT ON ITS OWN IS NOT GONNA BE ABLE TO COMPLETELY FUND ALL OF THESE PROJECTS.
BUT WHAT TENDS TO BE THE BEST USE OF THESE DOLLARS IS LEVERAGE PIECES OF PROJECTS THAT CAN BE USED TO ATTRACT YET OTHER MONEY, SUCH AS PRIVATE SECTOR INVESTMENT, STATE GRANTS, PHILANTHROPIC FUNDING, OTHER SOURCES OF REVENUE.
THAT'S A KEY PART OF THE BUSINESS PLAN.
I'LL ADMIT SOME OF THESE SLIDES HAVE BEEN PULLED INTO THIS PRESENTATION OUT OF AN APPENDIX, GIVEN THE STUDY SESSION FORMAT.
BUT GIVEN OUR TIME CONSTRAINTS TODAY, I MIGHT NOT DO A SUPER DEEP DIVE.
WE HAVE TO MAKE ASSUMPTIONS ABOUT ASSESSED VALUE GROWTH OVER TIME.
WE DON'T MAKE IT UP OUT OF THIN AIR.
LOTS OF DISCUSSION AT A STAFF LEVEL BETWEEN WHAT'S ACTUALLY IN THE PIPELINE, WHAT IS THE PRIVATE SECTOR ACTUALLY PROPOSING? WHAT IS THAT GENERAL TIMING? AND WE PHASE THAT OUT OVER TIME.
WE'RE JUST MERELY MAKING A SET OF PROJECTIONS.
YOU'RE NOT COMMITTING YOURSELF BY ANY MEANS TO THOSE LAND USES.
THOSE USES CREATE ASSESSED PROPERTY VALUE OVER TIME, AND THE CITY DOESN'T GET ALL THE PROPERTY TAXES.
AS THIS COUNCIL KNOW AS WELL, SCHOOL DISTRICTS GET MOST OF THE PROPERTY TAX.
THE CITY GETS SOME PIECE OF IT, THE COUNTY GETS SOME PIECE OF IT.
A HUGE PART OF THE BENEFIT FOR CITIES GOING DOWN THIS PATH IS THAT YOU'RE NOT JUST BUS BUDGETING A PIECE OF YOUR PIECE OF THE PROPERTY TAX PIE, BUT YOU'RE EARNING A PIECE OF THE COUNTY'S PIECE THAT WOULD OTHERWISE BE SPENT SOMEWHERE UNRESTRICTED WITHIN THE COUNTY.
BUT THIS ENABLES YOU TO CAPTURE SOME PIECE OF THEIR REVENUE FOR INVESTMENT HERE LOCALLY IN LONG BEACH FOR, FOR THESE SORTS OF PROJECTS.
SO, TO TALK A LITTLE BIT MORE SPECIFICALLY ABOUT NUMBERS, LOTS OF DIFFERENT SCENARIOS WERE EVALUATED.
SHOWN HERE ON THIS PAGE ARE TWO SCENARIOS IN LETTER A, WHERE THE CITY JUST WITHIN THAT BOUNDARY ENCUMBERS 25%.
SO A QUARTER OF ITS FUTURE PROPERTY TAX REVENUE JUST WITHIN THAT BOUNDARY.
AND THEN VERY IMPORTANTLY, THE COUNTY MATCHES THAT WITH THEIR A QUARTER OF THEIR OWN SHARE.
SO GENERALLY, WHAT DOES THAT GET YOU? WITHIN FIVE YEARS FOR PROJECTS ABOUT $37 MILLION AS VALUE GROWS OVER TIME, OVER 10 YEARS, CLOSER TO A HUNDRED MILLION IN SPENDING FOR PROJECTS.
AND THEN THESE DISTRICTS, AGAIN, TEND TO BE LONG-TERM IN NATURE OVER 50 YEARS ON A PRESENT VALUE BASIS.
THAT MEANS WE'RE, WE'RE TRYING TO ACCOUNT FOR INFLATION, WE'RE TALKING ABOUT 385 MILLION ON THAT ORDER.
LETTER B WAS MODELED AT A HIGHER LEVEL OF ALLOCATION, BUT JUST GETTING TO THE PUNCHLINE, IT, IT'S COMANS OPINION DISCUSSING WITH CITY STAFF THAT A 50% ALLOCATION, YES, IT CAN GENERATE MORE DOLLARS, BUT REPRESENTS, UH, A BIT TIGHT OF AN INVESTMENT FROM A GENERAL FUND PERSPECTIVE, WE'RE ALWAYS TRYING TO ACHIEVE THAT BALANCE BETWEEN GENERATING ENOUGH DOLLARS BUT ALSO GROWING THE GENERAL FUND, NOT DRAINING THE GENERAL FUND.
SO WHAT COSMAN HAS BEEN SUGGESTING IS, UH, SOMETHING CLOSER TO LETTER A, BUT VERY IMPORTANTLY, NONE OF THAT IS, IS DECIDED AT THIS POINT, UM, THAT WOULD COME, THAT SORT OF
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DECISION WOULD COME IN THE FUTURE.WHAT THAT PERCENTAGE IS, WHAT THE COUNTY MATCHES.
THESE ARE JUST SCENARIOS THAT HAVE BEEN EVALUATED.
THE COUNTY HAS A POLICY, IT'S NOT AN AUTOMATIC YES, IT'S NOT AN AUTOMATIC NO FOR THEIR PARTNERSHIP.
THEY HAVE A POLICY SINCE AUGUST OF 2018 THAT SAYS, WHAT DO YOU HAVE TO DO AS A CITY IF YOU'RE PROPOSING FOR COUNTY PARTNERSHIP? AND I'LL, WE WILL SAY, I THINK IN OUR DISCUSSIONS WITH COUNTY STAFF, WE'RE CHECKING ALL THEIR BOXES SO FAR IT WASN'T AUTOMATICALLY THERE.
A LOT OF THAT DISCUSSION ABOUT REALLY REFINING THAT BOUNDARY AND TIGHTENING IT UP.
THAT HAD A LOT TO DO WITH THEM BEING ABLE TO CHECK OFF THEIR BOTTOM BOX HERE, WHAT THEY CALL THEIR BUT FOR TEST.
BUT IT'S FEELING GOOD RIGHT NOW WHERE IT'S AT WITH THE COUNTY.
IF IF SOMETHING LIKE WHAT IS SHOWN HERE TODAY COMES BEFORE THEM, THERE'S DIFFERENT WAYS TO USE THE DOLLARS.
YOU CAN BOND AGAINST THESE DOLLARS, BUT YOU DON'T HAVE TO.
YOU CAN PLEDGE THESE DOLLARS FOR REIMBURSEMENT.
UM, YOU CAN, UH, UM, USE THESE DOLLARS AS MATCHES FOR STATE GRANTS, THINGS LIKE THAT.
SO DIFFERENT WAYS TO USE THE DOLLARS.
AGAIN, NONE OF THESE ARE BEING SET IN STONE AT THE TIME THESE DISTRICTS ARE FORMED.
THESE ARE JUST DIFFERENT WAYS THAT CAN, UH, THE DISTRICT CAN MONETIZE THE REVENUE OVER TIME.
AGAIN, IT'S NOT JUST ABOUT THAT REVENUE STREAM.
IT'S NOT JUST ABOUT THE ABILITY TO BOND AGAINST THAT REVENUE STREAM, BUT IT'S ALSO ABOUT THE FACT THAT THESE DISTRICTS CAN PRIORITIZE AND IMPROVE SCORING ON THINGS LIKE STATE GRANTS.
SEVERAL STATE GRANTS ARE EXPLICITLY GIVING MORE POINTS, AGAIN TO CITIES AND COUNTIES THAT ARE EXPLICITLY DOING THESE TYPES OF DISTRICTS.
RETURN ON INVESTMENT IS HINTED AT EARLIER.
IT WAS MEASURED A NUMBER OF DIFFERENT WAYS IT'S BEEN ANALYZED QUANTITATIVELY IN TERMS OF SOCIAL IMPACTS, HOUSING CREATION, CERTAINLY AFFORDABLE HOUSING CREATION, LOTS OF ANALYSIS ON JOB CREATION AND WAGES ASSOCIATED WITH THOSE JOBS, BOTH FROM ONGOING OPERATION AND CONSTRUCTION RELATED ACTIVITY.
BUT JUST TO BE HONEST, MOST OF THE TIME WAS SPENT ON THE SECOND TO LAST BULLET POINT.
IS THIS JUST A GOOD USE OF THE PUBLIC DOLLAR? IS THERE A POSITIVE RETURN ON INVESTMENT FOR THE CITY, FOR THE COUNTY, AND POTENTIALLY GOING DOWN THIS PATH? AND UNFORTUNATELY, THE ANALYSIS IS SHOWING POSITIVE ROI POSITIVE RETURN ON INVESTMENT.
THERE'S JUST MORE DETAIL WITH THE WAY THAT POSITIVE RETURN ON INVESTMENT IS DEFINED.
YOU KNOW, NET NEW REVENUES, THAT'S GREAT.
NEW INVESTMENT COMES WITH NEW REVENUES, BUT IT ALSO COMES WITH NEW EXPENDITURES.
SO WE HAVE TO EVALUATE THOSE AS WELL.
AND THEN WE HAVE TO ESSENTIALLY NET OUT, IF YOU'RE TYING UP A PIECE OF THE NEW PROPERTY TAX REVENUE IN THIS DISTRICT, AND IT'S THEREFORE NO LONGER AVAILABLE IN THE GENERAL FUND, YOU HAVE TO DISCOUNT THAT.
SO WHEN WE SAY BOTTOM LINE RETURN ON INVESTMENT, WE'RE TALKING ABOUT NEW REVENUES, NET OF EXPENDITURES AND NET OF THIS TYING UP OF A PIECE OF THE FUTURE DOLLAR FOR BOTH THE CITY AND THE COUNTY.
AND WE MODEL THAT SAME RETURN ON INVESTMENT OVER TIME.
SO WE DON'T JUST LOOK AT A SPECIFIC YEAR.
WE MODEL THAT OUT OVER TIME, OVER A LONG DISTRICT DURATION.
AND AT SOME POINT, SOMETHING TYPICALLY UNDER ORDER OF 45 TO 50 YEARS, THE DISTRICT TURNS OFF, IT'S NOT FOREVER.
AND YOU STOP TYING UP THOSE GENERAL FUND DOLLARS AND THAT'S WHEN YOU SEE TYPICALLY THIS BIG BUMP TOWARD THE END.
SO ALL THE PROPERTY TAX NOW FLOWS UNENCUMBERED TO THE GENERAL FUND FOR THE CITY AND FOR THE COUNTY.
SO IT'S JUST GOOD TO KNOW IT GETS BETTER OVER TIME, NOT WORSE OVER TIME.
DIFFERENT MATTERS OF A GOVERNANCE AND IMPLEMENTATION.
THE CITY WOULD HAVE COMPLETE FLEXIBILITY, UH, SINGLE FINANCING DISTRICT WITH THESE FIVE, SEVERAL SEPARATE PROJECT AREAS.
IT COULD BE FIVE DIFFERENT FINANCING DISTRICTS.
THAT'S NOT WHAT, UH, COSSON HAS SUGGESTED TO STAFF.
WE THINK THAT GENERALLY PRESENTS SORT OF, UH, HIGH OVERLY HIGH ADMINISTRATIVE COSTS, A LITTLE SORT OF COMPLICATION BEYOND WHAT'S NEEDED.
SO WHAT WE'VE DISCUSSED SO FAR AS A SINGLE DISTRICT, SINGLE GOVERNING BOARD, SINGLE GOVERNING, UH, SET OF DOCUMENTATION, BUT AT LEAST THE ABILITY TO TRACK REVENUES SEPARATELY SHOULD POINT OUT THAT THAT PUBLIC FINANCING AUTHORITY IS A SEPARATE BROWN ACT LEGAL ENTITY.
ITS JOB IS TO IMPLEMENT THAT PLAN, THAT INFRASTRUCTURE FINANCING PLAN, BUT ONLY AFTER THAT INFRASTRUCTURE FINANCING PLAN WOULD'VE BEEN APPROVED SEPARATELY BY THE CITY COUNCIL AND THE BOARD OF SUPERVISORS EASY AMENDMENTS TO THAT PLAN, LIKE UPDATES TO REVENUE PROJECTIONS, TYPOGRAPHICAL THINGS.
THOSE CAN BE MADE JUST BY THE PFA ON ITS OWN.
BUT IF MAJOR CHANGES, LIKE YOU'RE CHANGING DOLLAR AMOUNTS OR PERCENTAGES, YOU'RE ADDING BRAND NEW TYPES OF PROJECTS TO BE FUNDED, THOSE WOULD HAVE TO SEPARATELY COME BACK TO THE CITY COUNCIL SEPARATELY, COME BACK TO THE COUNTY BOARD OF SUPERVISORS BEFORE THE PFA CAN DO THOSE SORTS OF BIG CHANGES.
UH, THAT GOVERNING BOARD IT'S COMPOSITION CHANGES DEPENDING ON WHETHER OTHER ENTITIES ARE GIVING YOU A SHARE OF THEIR DOLLAR.
THE TEMPLATE THAT'S BEEN APPLIED SO FAR WITHIN THIS COUNTY AND ACROSS THE STATE IS FIVE INDIVIDUALS WHERE TWO ARE MEMBERS OF THE CITY COUNCIL.
ONE IS A COUNTY SUPERVISOR, ONE IS A MEMBER OF THE PUBLIC APPOINTED BY THE CITY COUNCIL, AND ONE IS A MEMBER OF THE PUBLIC APPOINTED BY THE COUNTY BOARD OF SUPERVISORS.
AND AGAIN, IT'S THAT SEPARATE PUBLIC FINANCING, UH, AUTHOR'S JOB TO OVERSEE THIS DISTRICT OVER THE LONG TERM.
THESE DISTRICTS OVER TIME DO TEND TO GROW WHEN
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WE LOOK AT SOME OF THE ONES THAT HAVE BEEN AROUND FOR THE LONGEST, UH, EIGHT, NINE YEARS, 10 YEARS NOW AT THIS POINT.SOMETIMES, UH, THERE ARE STAFF RECRUITED, UH, GENERALLY BEFORE THAT POINT.
IT IS JUST TYPICALLY CITY STAFF FUNCTIONING AS STAFF TO THE DISTRICT.
AND AS THE REVENUE GROWS AND THE THE PROJECTS ARE UNDERTAKEN AND DOLLARS ARE ALLOCATED, YEAH, WE DO SEE ADMINISTRATIVE EXPENSES INCREASE OVER TIME.
SIMILAR IN SOME RE RESPECTS TO THE OLD REDEVELOPMENT AGENCIES.
AND WE JUST HAVE A SAMPLE BUDGET IN HERE.
I WON'T BELABOR IT, BUT THIS IS SAN DIEGO, ONE OF THE ONES THAT HAVE BEEN FORMED, UM, EARLIEST SINCE 2017.
SO JUST A SNAPSHOT OF HOW THEY, UH, DO THEIR ANNUAL BUDGETING AND HOW THE NUMBERS LOOK.
SO THE PROCESS IS IMPORTANT FOR THESE.
THE STATE LAW STIPULATES VERY SPECIFICALLY, UH, PUBLIC NOTICES, AGAIN, BY MAIL, BY NEWSPAPER, BY WEBSITE.
WE'RE, WE'RE STILL IN LETTERS A AND B IN THIS WHOLE PROCESS, TRYING TO GET TO A SET OF BOUNDARIES, A SET OF REVENUE SCENARIOS, A LIST OF PROJECTS THAT MAKE SOME SENSE.
WHAT WOULD POTENTIALLY COME NEXT AS LETTER C, WHERE THE CITY COUNCIL IS THE LEAD AGENCY WOULD CONSIDER A RESOLUTION OF INTENTION.
AGAIN, IT'S A NON-BINDING ACTION, BUT IT SORT OF GETS THE WHEELS IN MOTION TOWARD FORMATION.
AND THEN WHAT THE COUNTY HAS DONE IN OTHER CIRCUMSTANCES IS WITHIN THREE WEEKS TO A MONTH, TRIES TO DO A COMPANION MOTION AS SOON AFTER THE CITY COUNCIL TAKES IT TO SHOW ALIGNMENT.
AND THERE WOULD, THEIRS WOULD BE A RESOLUTION OF INTENTION TO PARTNER WITH THE CITY OF LONG BEACH.
AND THEN AFTER THAT, LETTERS D THROUGH I IS THAT PREPARATION OF THAT PLAN, THE INFRASTRUCTURE FINANCING PLAN THAT HAS ALL THOSE KEY TERMS AND THE PRESENTATION OF THAT PLAN QUITE REPETITIVELY TO BE HONEST.
BUT, BUT IT'S IMPORTANT REPETITIVELY PRESENTED IN E-F-G-H-I, SO THAT MEMBERS OF THE PUBLIC, ESPECIALLY LANDOWNERS AND RESIDENTS WITHIN THE DISTRICT, BUT ANY MEMBER OF THE PUBLIC CAN ATTEND TO HEAR THAT PLAN, HAVE A CHANCE TO COMMENT ON IT, TO QUESTION IT, TO EVEN OBJECT TO IT.
AND AGAIN, IN LETTER G, SEPARATE CONSIDERATION BY THE CITY COUNCIL, SEPARATE CONSIDERATION BY THE COUNTY BOARD OF SUPERVISORS.
AND THAT, THAT LAST ONE LETTER, I, IT'S A, A FORMAL OPPORTUNITY FOR RESIDENTS AND PROPERTY OWNERS WITHIN THE DISTRICT TO PROTEST.
SO AGAIN, WE'RE NOT INCREASING ANYBODY'S TAXES, SO THERE'S NO VOTE REQUIRED, BUT THE CLOSEST WE COME TO THAT IS A PROTEST OPPORTUNITY.
THOSE FOLKS WHO RESIDE OR OWN PROPERTY, WHEN THE DISTRICT CAN SAY, WE DON'T LIKE THIS, WE DON'T LIKE THE PLAN, WE DON'T LIKE THE CONCEPT, WE DON'T LIKE THE PROCESS.
AND ANYTHING LIKE THAT CAN BE PROTESTED.
AND AS WE SIT HERE TODAY IN OCTOBER, WE THINK AUGUST OF 2027 IS SORT OF A REASONABLE PROJECTION OF GETTING TO THAT FINISH LINE IF, IF THE COUNCIL DOES DESIRE TO MOVE FORWARD.
WE, WE SIT HERE TODAY TO TO HEAR ADDITIONAL QUESTIONS AND FEEDBACK FROM THE CITY COUNCIL IF, UH, IF THINGS LOOK POSITIVE TO THE COUNCIL.
UH, THE COUNTY HAS BEEN CHECKING IN ON US.
THEY ACTUALLY EMAILED US ABOUT THREE TIMES TODAY, UH, TO SEE HOW THINGS ARE GOING.
AND SO IF, IF THIS WERE TO MOVE FORWARD, THEY WOULD WANNA SET UP SOME DATES ON THEIR END WITH THEIR ECONOMIC DEVELOPMENT CLUSTER AND THEIR BOARD OF SUPERVISORS, UH, TO ALIGN WITH THE CITY PROCESS.
I'M AVAILABLE TO ADDRESS ANY QUESTIONS ALONG WITH STAFF.
IS THERE ANY PUBLIC COMMENT? ALRIGHT, SO WE'LL TAKE IT BEHIND THE RAIL.
SO THANK YOU FOR THIS PRESENTATION.
I REMEMBER THE REDEVELOPMENT DAYS.
I SURE WISH, UH, THAT WE HAD READ REDEVELOPMENT WHEN I WAS A COUNCIL MEMBER OR A MAYOR.
THERE'S SO MUCH GOOD WE COULD HAVE, COULD HAVE DONE IN NORTH LONG BEACH AND ACROSS THE CITY.
UM, I, I, YOU KNOW, I ALSO WOULD SAY THAT WHEN WE ORIGINALLY TALKED ABOUT THIS IDEA, THE INTENTION WAS TO ADDRESS SORT OF THE, THE FACT THAT WE HAVE THESE AREAS OF TOWN, PARTICULARLY IN NORTH CENTRAL AND WEST LONG BEACH, THAT HAVE HAD A LACK OF RESOURCES, UM, SUBSTANDARD INFRASTRUCTURE, LACK OF ECONOMIC OPPORTUNITY.
AND IT WAS FRAMED AS AN OPPORTUNITY TO ACCELERATE ECONOMIC GROWTH IN NORTH CENTRAL AND WEST LONG BEACH WAS THE ORIGINAL FRAMING ON HOW WE BROUGHT THIS FORWARD.
AND I THINK THE WAY YOU DRAWN THESE LANDS, THESE LINES CAN CAPTURE THAT AS LONG AS THERE'S A NEXUS ON INVESTMENT.
NOW, I DON'T THINK IT SHOULD BE RES FULLY RESTRICTED TO JUST THOSE BOUNDARIES.
THERE MAY BE A A, A PARK PROJECT OR SOMETHING THAT ISN'T GENERATING, UM, TAX INCREMENT, BUT IT'S ADJACENT AND INCREASES THE VALUE IN THE AREA.
SO I, I DON'T THINK IT HAS TO BE STRICTLY WITHIN THE BOUNDARIES, BUT THERE IS NEEDS TO BE A WAY THAT WE CARRY THE SPIRIT OF, UM, RAISING UP THE FLOOR ACROSS THE CITY.
THE IDEA IS LIKE IF ALL OF OUR COMMUNITIES ARE ECONOMICALLY VIBRANT, IT WILL ULTIMATELY HELP THE GENERAL FUND.
IT WILL ULTIMATELY HELP GROW OUR REVENUE BASE ACROSS THE CITY.
SO THAT HAS TO BE, THAT HAS, THAT HAS TO BE OUTLINED SOMEHOW IN HOW WE CRAFT THIS DISTRICT.
SO HOW ARE YOU THINKING ABOUT, UM, MAKING SURE THAT LIKE WE'RE MAINING MAINTAINING OUR CONSISTENCY ON THE FOCUS OF WHY WE'RE, WHY WE'RE DOING THIS? I CAN START, MAYOR, AS PART OF THE PROCESS, WE'LL CREATE A, A PLAN, UM, FOR THE ENHANCED INFRASTRUCTURE FINANCING
[00:25:01]
DISTRICT PROGRAM.AND THERE'LL BE INSTANCES WHERE WE WILL BE ABLE TO SUPPORT PROJECTS THAT ARE OUTSIDE OF THE TARGET AREAS, SUCH AS AFFORDABLE HOUSING PARKS AND OTHER PROJECTS THAT HAVE CITYWIDE, UM, IMPACT.
SO I THINK THAT'S SOMETHING THAT'LL ALWAYS BE PART OF THE PLAN AS WE MOVE IT FORWARD.
I, I GUESS I'M LOOKING FOR SOMETHING A LITTLE MORE THAN THAT.
UM, LIKE HOW DO WE, SO I'LL GIVE YOU AN EXAMPLE.
THE CARLITOS, RIGHT? THE CARLITOS AREN'T NECESSARILY WITHIN THIS DISTRICT, ATLANTIC AVENUE IS, RIGHT? SO LET'S SAY, YOU KNOW, WE GOT TAX GROWTH TAX INCREMENT FROM ATLANTIC AVENUE, BUT LET'S SAY THE CARLITOS, WHICH HISTORICALLY HASN'T BEEN SEEN AS AN ECONOMIC BENEFIT TO THE AREA, LET'S SAY IT'S REDEVELOPED AND IT BECOMES AN ECONOMIC BENEFIT TO THE AREA.
AND, AND IT DOES HELP ALL OF NORTH LONG BEACH 'CAUSE IT'S SUCH A BIG PROPERTY AND WE WANT TO LEVERAGE THESE RESOURCES TO GO INTO THAT PROJECT.
UM, IN NORTH LONG BEACH, RIGHT NOW, YOU HAVE THE ABILITY TO DO SO WITH THE FLEXIBILITY, BUT YOU'RE NOT DIRECTED TO FOCUS ON PROJECTS THAT UPLIFT NORTH LONG BEACH, FOR EXAMPLE, RIGHT? SO HOW DO WE MAKE SURE THAT THERE'S SOMETHING EARLY ON? 'CAUSE WE'RE TALKING ABOUT 50 YEARS HERE, THAT THERE'S SOME INTENTION EXPLICITLY AT THE BEGINNING THAT SAYS IN 50 YEARS WE DON'T WANT TO CONTINUE TO HAVE, LIKE, THIS IS ONE TOOL, IT WON'T SOLVE EVERY PROBLEM, BUT IT'S ONE TOOL TO HELP DRIVE ECONOMIC EQUITY IN THE CITY AND UPLIFT THE AREAS THAT HAVEN'T HAD THESE ECONOMIC BENEFITS.
SO THERE HAS TO BE SOME NEXUS BETWEEN HOW WE MAKE THE INVESTMENT.
LIKE, SO, SO I GUESS WE WANT TO BE TARGETED, BUT WE DON'T EVEN BE AS RESTRICTIVE, RIGHT? SO HOW DO, HOW COME HOW COULD THAT HAPPEN HERE AT THE LIKE, ONSET OF THIS DISTRICT? THANK YOU.
UH, WHAT HAS WORKED WELL FOR US SO FAR IS BEING MORE SPECIFIC IN THE NEAR TERM AND A BIT MORE FLEXIBLE IN THE LONG TERM.
TWO WAYS WE'VE DONE THAT IS IN THIS PLAN THAT GETS CREATED.
THE INFRASTRUCTURE FINANCING PLAN.
YEAH, ESPECIALLY FOR THE EARLY YEARS.
WE, LIKE, WE PREFER IT HAS WORKED WELL TO CALL OUT SPECIFIC PROJECTS.
SO WE'LL HAVE PROJECTIONS WITHIN THE PLAN WILL BE SPECIFIC YEAR BY YEAR PROJECTIONS EVERY YEAR.
AND THE PLAN, THIS INFRASTRUCTURE FINANCING PLAN WILL ALLOW YOU TO CALL OUT SPECIFIC PROJECT IF THAT'S THE DESIRE OF THE COUNCIL FOR PRIORITY IN THE INITIAL YEARS, OR IT COULD ALSO BE FOR THE LONGER TERM.
SO CALL OUT THE SPECIFIC ONES.
WHAT WE'VE ADDITIONALLY DONE IS BEYOND JUST THE SPECIFIC, BECAUSE THERE'S ALWAYS MORE THAN WE KNOW, IS TO WRITE IN THIS CONCEPT OF, UH, LIKE A FRAMEWORK FOR PRIORITIZATION.
IN FUTURE YEARS, YOU COULD CHOOSE IF YOU SO WISH.
I LIKE THAT SOME CRITERIA LIKE, UM, YOU KNOW, UM, ECONOMIC EQUITY AS A PRI AS A, AS A, UH, SORT OF SCREENING CRITERIA, UM, CATALYTIC POTENTIAL IS ONE EXAMPLE.
WE'RE WE'RE DOING IT IN SEVERAL OF THESE, UM, POTENTIAL TO ATTRACT OTHER DOLLARS AS, I MEAN, THESE ARE JUST DIFFERENT THINGS THAT WE, WE SORT OF TAILOR IT IN A LOT OF OUR WORK, BUT IT ALL LIVES IN THAT INFRASTRUCTURE FINANCING PLAN THAT BECOMES THE GUIDING DOCUMENT OVER TIME.
AND WHEN DOES THAT GET DEVELOPED? SO THAT WOULD'VE BEEN IN THIS, UH, IT GETS DRAFTED IN THIS LETTER D AND THAT HAS TO FIRST GET TO A PLACE WHERE IT'S, YOU KNOW, THE CITY FEELS COMFORTABLE PUBLISHING THAT, AND THEN IT ACTUALLY REMAINS A DRAFT THROUGH EFG ALL THE WAY UNTIL I TO ALLOW SUFFICIENT CHANCE TO REFINE THAT, TO MAKE SURE IT LOOKS LIKE THE WAY THE COUNCIL LIKES AND THAT IT'S, UH, ACCEPTABLE TO THE COUNTY BOARD OF SUPERVISORS.
AND THAT GETS SORT OF SOMEWHAT SET IN STONE IN LETTER I.
THE REALITY IS THAT PLAN IS ACTUALLY REQUIRED TO THEN BE REVISITED AT LEAST ONCE A YEAR BY THIS PUBLIC FINANCING AUTHORITY.
AND AGAIN, BECAUSE THINGS CHANGE IN THE EARLY YEARS, WE DON'T TEND TO REVISE THEM SO MUCH, BUT WE HAVE DONE AT LEAST TWO AMENDMENTS SO FAR BECAUSE TIME HAS GONE BY AND THINGS HAVE CHANGED AND THINGS LIKE THE REVENUE PROJECTIONS OR THE BONDING CAPACITY OR EVEN SOME OF THE PRIORITIES HAVE SHIFTED SLIGHTLY.
AND THEN MAYOR, IF I MAY ADD, SO ONE THING I'D REALLY LIKE TO DO IS THESE THINGS TAKE SOME TIME TO CREATE THAT TAX INCREMENT SO IT CAN BE A LITTLE BIT OF A, OF A SLOW START.
WHAT ARE THOSE PROJECTS THAT CAN, UH, BE A MULTIPLIER EFFECT AND THAT CAN BOOST WITHIN THE AREAS THAT ARE ACTUALLY GENERATING THE DOLLARS.
SO WE CAN SPEND THEM ANYWHERE CITYWIDE, BUT IF YOU SPEND IT ON A PROJECT WAY FAR AWAY, IT MAY NOT HAVE THE SAME IMPACT.
AND EVERY DOLLAR THAT WE CAN RAISE TAX INCREMENT, IT'S, IT'S DOUBLED BY THE COUNTY.
SO LIKE THAT'S REALLY WHAT WE WANNA DO, ESPECIALLY IN THE SHORT TERM.
HOW DO WE GIVE THIS A BOOST AND GET PROJECTS QUICKLY THAT CAN, THAT CAN BOOST THAT TAX INCREMENT AND GET US MORE AND IT BUILDS ON ITSELF.
IF YOU REMEMBER THAT THAT CHART, IT JUST WENT UP AND UP AND UP.
IT'S A LITTLE BIT SLOW IN THE BEGINNING.
SO THAT WILL BE PART OF OUR STRATEGY IS TO GET THAT, UM, THAT CATALYST.
I THINK IT, IT NEEDS AT THE BEGINNING SOMETHING THAT CAN JUST BE, BE REFERENCED IN 40 YEARS, IN 30 YEARS, WHERE PEOPLE CAN GO BACK AND SAY WHAT, YOU KNOW, WHAT WAS THE ORIGINAL INTENT OF WHY WE ESTABLISHED THIS DISTRICT? BECAUSE IT WILL HAVE MISSION CREEP.
I'LL JUST NOTE, I'LL JUST NOTE IT.
I'LL JUST SAY LIKE, YOU KNOW, I WAS, I WORKED IN NORTH LONG BEACH TOWARD, TOWARD THE LATE STAGES OF REDEVELOPMENT AND TO THIS DAY I STILL HEAR
[00:30:01]
WHAT HAPPENED TO THE NORTH LONG BEACH DOLLARS.IT ALL WENT TO BUILD THE AQUARIUM OF THE PACIFIC.
YOU HEAR THAT COUNCILWOMAN
NOW I KNOW AS MAYOR WHAT THE AQUARIUM, WHAT VALUE IT BRINGS TO THE CITY.
I THINK WE NEED THOSE REVENUE DRIVERS LIKE A NEW CONVENTION CENTER AND THINGS LIKE THAT.
I UNDERSTAND IT, BUT THERE NEEDS TO BE SOMETHING THERE THAT NAMES YEAH, ACCELERATING REVENUE GROWTH CITYWIDE, BUT ALSO BOOSTING, YOU KNOW, ADDRESSING ECONOMIC EQUITY IN THESE AREAS.
SO, SO PERHAPS IN THIS PLAN THERE'S A LITTLE BIT OF A MISSION STATEMENT OR SOMETHING THAT IS LIKE FOUNDATIONAL THAT IS ESTABLISHED AND MAYBE IT'S NOT IN THE STATE LAW, BUT MAYBE IT'S SOMETHING WE DO LOCALLY THAT'S UNIQUE TO LONG BEACH.
SO, SO I SUPPORT STUFF LIKE SPACE BEACH AND, YOU KNOW, MAKING SURE WE HAVE TOURISM AND ALL THOSE THINGS WHICH ARE UNIQUE TO CERTAIN AREAS THAT DO BENEFIT THE WHOLE CITY.
BUT A GOAL HAS TO BE TO CHANGE THE ECONOMIC CIRCUMSTANCES IN NORTH, NORTH CENTRAL WEST LONG BEACH.
SO THOSE ARE, THOSE ARE MY, THOSE ARE MY THOUGHTS THERE.
WE'LL GO TO THE COUNCIL, UM, COUNCIL MEMBER RICK SODI.
AND UH, I THINK THAT WAS FANTASTIC FRAMING, UM, AROUND WHAT WE WANT OUR, IN OUR INFRASTRUCTURE FINANCING PLAN.
UM, MINE WAS MORE JUST A EDUCATIONAL, UM, QUESTION, WHICH IS CAN WE GO TO SLIDE FOUR? BECAUSE I JUST WANNA MAKE SURE I I, IF I HAVE TO EXPLAIN THIS TO A RESIDENT, I WANNA MAKE SURE I CAN EXPLAIN IT CORRECTLY.
UM, AND AS YOU WENT ALONG, UM, I'M SORRY I GOT HER LATE SO I DIDN'T CATCH YOUR NAME.
UM, BUT THANK YOU FOR THE PRESENTATION.
I JUST WANTED TO MAKE SURE THAT I UNDERSTOOD.
SO I'M LOOKING AT A GRAPHS THAT SAYS WHAT DOES TAX INCREMENT FINANCING DISTRICT, IT HAS YEARS OF FORMATION AND THEN I SEE BASELINE PROPERTY VALUE, SO THE GENERAL PROPERTY, YOU KNOW, TAXES THAT WE TYPICALLY GET.
AND THEN YOU HAVE THIS KIND OF LIKE LIGHTER SHADED BLUE X EXTRA THAT'S THE NEW PROPERTY VALUE FROM THE NEW DEVELOPMENT THAT'S AVAILABLE TO THE TIFF.
SO IS THE IDEA AS WE'RE GENERATING PROPERTY TAX, SO I, UH, SO LET'S TALK ABOUT, WE HAVE LIKE A PIE OF A HUNDRED PERCENT, RIGHT? AND SO THE CITY USUALLY GETS LIKE 20% OF THAT PIE, UM, BUT THE PIE GETS BIGGER OVER TIME, CORRECT? BECAUSE OUR PROPERTY VALUES INCREASE, SO WE ARE NOT NECESSARILY GETTING A LARGER PERCENTAGE OR WE ARE OVER TIME OF THAT, UM, THAT EVENTUAL REALIZED PROPERTY VALUE INCREASE THAT WE GET OVER TIME.
HOW EXACTLY DOES THAT WORK? I WANNA MAKE SURE I UNDERSTAND THAT FROM THE ASSESSED PROPERTY VALUE.
UH, MY NAME IS JOE, BY THE WAY.
I DO FOR THE QUESTION, UH, ONLY, ONLY WITH THE COUNTY MATCH, DO YOUR, DOES YOUR PIECE OF THE PIE GROW LARGER THAN IT WOULD OTHERWISE? SO WE HAVE MANY CITIES THAT SAY I'M ONLY GONNA DO THIS IF I CAN GET SOMEONE ELSE'S MONEY A MATCH FROM SOMEONE ELSE.
AND THAT IS OBVIOUSLY A VERY LEGITIMATE POSITION.
UM, AGAIN HERE, NOTHING'S BEEN COMMITTED, BUT SO FAR THE DISCUSSIONS WITH THE COUNTY ARE QUITE POSITIVE INDICATING THEIR INTEREST TO BE A PARTNER TO THE CITY.
OKAY, SO THAT LIGHT BLUE PORTION IS A PROJECTION BASED ON MAYBE LIKE THE SLIDES YOU HAVE WHERE THERE'S LIKE THE 25%, 25%, RIGHT.
SO IF THE COUNTY DECIDES TO, TO MATCH IT, THEN THAT LIGHT BLUE PORTION BASICALLY REPRESENTS THAT PORTION OF THE MATCH THAT WE ARE GETTING FROM THE COUNTY.
THAT THAT'S A VERY GOOD WAY TO LOOK AT IT.
YEAH, THE PIE IS GROWING AND WE'RE HAVING A BIGGER PIECE OF THE PIE THAN WE WOULD OTHERWISE.
AND WE'LL JUST POINT OUT THIS, THIS GRAPHIC IS JUST ILLUSTRATIVE, SO IT DOESN'T TIE EXACTLY TO THE NUMBERS.
BUT THE CONCEPT YOU SAID IS EXACTLY RIGHT.
AND THEN MY LAST QUESTION, UH, FOR THAT IS, AND MAYBE THIS IS OBVIOUS TO PEOPLE, BUT IT'S NOT NECESSARILY OBVIOUS TO ME.
UM, WHAT IS THE VALUE ADDED THEN FOR THE COUNTY RIGHT, TO DO THIS? LIKE WHY WOULD THEY WANT TO DO THESE TYPES OF TAX INCREMENT DISTRICTS AND WHY WOULD THEY BE INCENTIVIZED TO DO A MATCH AND THEN GIVE US MONEY THAT MIGHT, MIGHT GO ELSEWHERE? THANK YOU COUNCIL MEMBER.
I'LL, I'LL START AND OF COURSE STAFF CAN ADD TO IT A KEY PART OF IT'S WHAT THEY CALL THEIR, BUT FOR TEST IT'S, IT'S LISTED AT THE BOTTOM OF THIS SLIDE, BUT IT MAY BE THEIR MOST IMPORTANT ONE IF THEY BELIEVE THAT THERE IS A DEFENSIBLE STORY THAT WITH THIS INVESTMENT IN INFRASTRUCTURE, THAT THEIR OWN DOLLAR WILL GROW LARGER AND FASTER THAN IT WOULD OTHERWISE, THAT THERE IS A POSITIVE RETURN ON INVESTMENT.
SO IF THEY'RE TYING UP 25% OF THEIR DOLLAR, BUT THE REMAINING 75% WILL GROW LARGER THAN IT WOULD'VE BEEN IF THEY KEPT THEIR A HUNDRED PERCENT, BUT IT GREW LESS OR SLOWER IF THEY BELIEVE THAT THAT IS WHEN THEY ARE WILLING TO PARTNER.
AND THAT IS SO FAR WHAT THEY'VE BEEN EXPRESSING HERE.
SO IT'S, IT'S KIND OF THE IDEA THAT, YOU KNOW, FOR CERTAIN PROGRAMS YOU PUT IN A DOLLAR AND YOU GET A DOLLAR 50 BACK, RIGHT? SO IT'S THE IDEA FROM THE COUNTY IS THAT WE'RE DOING THESE INVESTMENTS IN STRATEGIC AREAS, BUT EVENTUALLY THE RETURN IN TAX TAXABLE, LIKE SAY PROPERTY TAXES ASSESS VALUE WILL INCREASE SUCH THAT IT MAKES SENSE FOR THEM TO HAVE DONE THAT BECAUSE THE ROI WILL BE HIGHER.
UM, GREAT TO HEAR THE PRESENTATION AGAIN.
[00:35:01]
UH, I DO APPRECIATE IT BECAUSE, UH, THERE'S SO MUCH TO EI FDS, UH, I DID WANNA, YOU[CALL TO ORDER]
KNOW, RAISE CONCERN THAT IN THE FIRST MEETING WE[ROLL CALL]
HAD, WE HAD PARTICIPANTS FROM THE COMMUNITY AND THEY WERE REALLY CONCERNED THAT IF THEIR AREA WAS NOT IN THE MAP, THAT THEY WOULDN'T BE ABLE TO BENEFIT FROM THE INCREMENTAL TAX RIGHT.BECAUSE OF FUNDING THAT THEY COULD PROBABLY UTILIZE.
AND SO I DO JUST WANNA MAKE SURE WE'RE CAREFUL IN THE WAY THAT WE DESCRIBE, AS MUCH AS
[1. 26-56476 Recommendation to receive and file an update on the City’s Enhanced Infrastructure Financing Districts (EIFDs). (Citywide) ]
I HEAR YOU SHARE THAT FUNDING CAN BE USED OUTSIDE OF THOSE BOUNDARY.I THINK IT'S IMPORTANT THAT WE ARE VERY CLEAR ABOUT PARAMETERS BECAUSE THEN, YOU KNOW, TOM SHARED EARLIER, WELL IF YOU GO VERY FAR OUT, IT DOESN'T REALLY DO THE BENEFITS OF THE VALUE, RIGHT? OF UH, THE, THE, THE FUNDING THAT'S PROVIDED FROM THE VALUE OF THE PROPERTY IN THE AREA.
SO I DON'T KNOW IF THERE'S A WAY WE CAN BETTER COMMUNICATE THAT TO THE PUBLIC, BECAUSE I REALLY JUST DON'T WANT PEOPLE TO COME BACK AND SAY, WELL, I THOUGHT YOU COULD DO THIS.
I, UM, I DON'T KNOW, WE COULD DRAW THEM IN RADIUS AND WHERE THE VALUE OF THE DOLLAR JUST DECREASES OVER TIME AND THIS IS WHAT IT MEANS.
NOT TO SAY YOU COULDN'T DO IT, BUT THIS IS WHAT WOULD MEAN IF YOU USE THE MONEY FURTHER AND FURTHER AWAY, THE VALUE OF THE DOLLAR DECREASES FOR THAT AREA OF THE PROPERTY.
I'M STILL TRYING TO UNDERSTAND IT.
YEAH, I THINK THE IMPORTANT THING TO NOTE IS IF, UM, THE TAX GOVERNMENT IS GONNA GROW WITHIN THE TARGETED AREA AND THAT'S WHERE YOU'RE GONNA, UH, GAIN THOSE FUTURE DOLLARS TO REINVEST BACK INTO THE COMMUNITY.
AND SO IT'S IMPORTANT FOR YOU TO FOCUS ON THOSE TARGET AREAS BUT ALSO CONTINUE TO FOCUS ON AREAS THAT ARE OUT.
BUT THAT THAT'S, THAT'S WHERE THE GROWTH IS GONNA OCCUR.
YEAH, I WOULD ASK COUNCIL MEMBER, YEAH.
IN LINE WITH BOTH COMMENTS, I THINK WHAT WE CAN DO WORKING WITH STAFF IS DRAW PERHAPS DRAFT PARAMETERS LIKE THOSE THAT YOU DISCUSSED.
AND IT WOULD HAVE TO COME BACK TO YOU AS PART OF THIS INFRASTRUCTURE FINANCING PLAN FOR YOU TO GIVE US YOUR INPUT ON WHETHER THAT MEETS THE NEED AND THE CONCERN THAT, THAT YOU'RE ADDRESSING.
OR PERHAPS YOU CAN HELP US REFINE THAT.
YEAH, I JUST WANTED TO RAISE IT AS A FLAG.
NOW I KNOW MARY KNOWS 'CAUSE I KEEP RAISING EVERY TIME SHE TALKS ABOUT IT WITH ME.
UH, JUST THE OTHER THING THAT I JUST WANTED TO ASK IS, THE ANALYSIS ASSUMES THERE'S APPROXIMATELY $2.2 BILLION IN THE NEW DEVELOPMENT OVER THE 10 YEARS.
SO WHAT HAPPENS TO THE CITY'S RETURN IF THEIR PROJECTS ARE DELAYED OR THE ASSESS VALUE COMES IN LOWER THAN PROJECTED OR THE INTEREST RATE REMAIN ELEVATED AS, OR INCREASES EVEN MORE THAN WHAT IT IS NOW? OUR CONSTRUCTION CROSS INCREASES.
UM, SO YEAH, WHAT HAPPENS THEN? I MEAN, I THINK MORE IMPORTANT WHAT I'M GETTING AT IS HOW WILL WE COMMUNICATE THAT SO THAT WE'RE NOT SAYING, WELL, UH, OH, WE'RE SHORT THAN WHAT WE THOUGHT WE WERE GONNA GET.
SO, UH, SO THESE ARE PROJECTIONS MEANT TO INFORM SOME DECISION MAKING DECISIONS, LIKE WHAT PERCENT OF MY FUTURE DOLLAR AM I ALLOCATING AND, AND MAYBE WHAT AM I BUDGETING FOR OVER THE LONG TERM? UH, BUT AGAIN, VERY IMPORTANTLY, IT IS NOT A SET IN STONE.
IT'S NOT A, A COMMITMENT WHEN YOU FORM THESE THAT YOU'RE GONNA HAVE EXACTLY THESE DOLLARS AT THIS TIME.
WHAT WE'VE BEEN DOING, IIII HINTED EARLIER THAT AT LEAST ONCE A YEAR THIS PLAN IS REQUIRED TO BE REVISITED.
AND WHAT WE OFTEN DO IS RECALIBRATE THOSE ASSUMPTIONS.
ANYTHING LIKE YOU SAID, INTEREST RATES, DEVELOPMENT PROJECTIONS, UM, EVEN BOND STRUCTURE, REALLY ANYTHING.
UH, BUT VERY IMPORTANTLY WHEN WE TALK ABOUT THINGS LIKE BONDING, UH, IT IS DIFFERENT.
SOME WILL SAY UNFORTUNATELY, SOME WILL SAY, FORTUNATELY IT'S DIFFERENT THAN TAX INCREMENT FINANCING IN OTHER STATES.
IN OTHER STATES, BELIEVE IT OR NOT, YOU CAN FORM ONE OF THESE AND IMMEDIATELY ISSUE SOME MASSIVE BOND JUST ON A SET OF PROJECTIONS LIKE THIS.
I THINK FORTUNATELY WE CAN'T DO THAT IN CALIFORNIA WITH THESE TOOLS.
SO WHEN WE SAY SOMETHING LIKE A YEAR FIVE BOND BRINGS IN 37 MILLION, THAT ACTUALLY WOULD NOT BE SET IN STONE UNTIL YEAR FIVE BASED ON ACTUAL YEAR FIVE REVENUE DEMONSTRATED AT THAT TIME.
AND THAT THESE BONDS, UH, TEND TO BE STRUCTURED AS LEVEL DEBT SERVICE, MEANING YEAR FIVE REVENUE, ASSUMING IT STAYS FLAT.
AND TO THE EXTENT THERE IS GROWTH BEYOND THAT, WHICH WE GENERALLY DO EXPECT, GREAT.
THEN MAYBE YOU DO ANOTHER BOND IN YEAR 10 OR YEAR 15.
BUT YOU'RE NOT BITING OFF MORE THAN YOU CAN CHOOSE TO AT ANY ONE POINT IN TIME.
AND WHAT IT HELPS PREVENT IS GETTING BEYOND YOUR SKIS OVER COMMITTING.
UM, SO LIKE YOU SAID, YEAH, 6% INTEREST RATE YEAH.
MAY BE APPROPRIATE TODAY, BUT MAYBE IT ACTUALLY ENDS UP BEING 6.5% THOSE TERMS YEAH.
WOULD NOT GET SET IN STONE AND DEFINED UNTIL YOU'RE ACTUALLY IN A POSITION TO DO THAT BOND.
AND, AND I WILL ADD THAT EVEN THOUGH THIS IS NOT REDEVELOPMENT
[00:40:01]
DOLLARS, IT'S NOT NEARLY AS FLEXIBLE.UM, IT'S THE SAME CONCEPT IN PRINCIPLE.
AND SO WE DID, YOU KNOW, 40 YEARS OF REDEVELOPMENT AND NEVER ONCE DEFAULTED ON ANY OF OUR BONDS.
WE WERE ALWAYS ABLE TO PAY THEM OFF.
UH, IT WAS ALWAYS BUDGETED CONSERVATIVELY.
UM, SO IT'S THE SAME TYPES OF THINGS WHERE YOU'RE, YOU KNOW, THOSE DOLLARS ARE COMING IN FROM PROPERTY TAX, THAT'S WHY YOU SET THEM ASIDE AND THEN YOU CAN ACTUALLY PAY THAT LEVEL DEBT SERVICE.
I JUST WANNA MAKE SURE THAT PEOPLE KNEW OR WEREN'T, WE WEREN'T THAT THIS IS A FIRM NUMBER WE'RE OBVIOUSLY GONNA RECALIBRATE AND LOOK AT IT EVERY YEAR.
ANY OTHER COUNCIL MEMBERS LIKE TO COME IN? COUNCIL MEMBER CUR? YES.
UH, THANK YOU FOR THE UPDATED PRESENTATION AND ANSWERING OUR QUESTIONS.
I KNOW ONE THAT WE SUBMITTED TO YOU THAT YOU ANSWERED THAT I JUST WANTED TO ASK OUT LOUD IS SOME PEOPLE MIGHT LOOK AT THESE MAPS AND SEE EITHER CITY OWNED PROPERTIES, SCHOOL DISTRICT OWNED PROPERTIES, PARKS, THOSE KINDS OF THINGS WITHIN THAT ZONE.
CAN YOU TALK ABOUT WHY THOSE ARE INCLUDED? UM, IN THE MAPS? THANK YOU COUNCIL MEMBER.
UM, SO WE CALL THESE VALUE CAPTURE MECHANISMS TO THE EXTENT SOMETHING DOES HAPPEN THAT IS TAXABLE, PUTTING IN THE DISTRICT MERELY ALLOWS US TO CAPTURE THAT VALUE, UH, WITH ITS, UH, TAXABLE VALUE GROWTH.
AND TO THE EXTENT SOMETHING STAYS NON-TAXABLE IS SORT OF NO HARM, NO FOUL, IT DOESN'T COST YOU ANYTHING.
UH, BUT ALSO VERY IMPORTANTLY, IT'S NOT A TA YOU KNOW, A A LAND USE TOOL.
IT IS THAT KIND OF VALUE CAPTURE FINANCING TOOL.
SO WHEN THERE ARE ASSUMPTIONS MADE, EVEN SO IF YOU CLUE IN THE BOUNDARY, YOU CAN STILL DO THAT AND NOT ASSUME ANYTHING SPECIFICALLY ABOUT THAT PIECE OF LAND.
YOU KNOW, YOU'RE NOT GONNA ASSUME HOUSING'S GONNA BE BUILT OR COMMERCIAL'S GONNA BE BUILT OR, OR EVEN THAT THE PROPERTY'S GONNA CHANGE HANDS, BUT YOU ARE SET UP TO BENEFIT IF IT DOES HAPPEN.
AND IF IT DOESN'T, AGAIN, UM, THERE'S, THERE'S THERE'S NO HARM DONE.
I APPRECIATE THE CLARIFICATION.
YOU KNOW, I HAD A, A QUICK FLASHBACK ON THIS WHOLE ISSUE AND IT REMINDED ME OF EMPOWERMENT ZONES.
EMPOWERMENT ZONES AS WE KNOW WHEN AWAY EVENTUALLY, HOW CAN WE ASSURE THAT THAT'S GONNA STAY FOR THE FULL COMPLETION 15 YEARS? THE EMPOWERMENT ZONE PIECE.
UM, I I, I FOUND IT TO BE A LITTLE BIT DECEIVING.
MY MYSELF ARE CONFUSING BECAUSE THERE USED TO BE THIS PROGRAM OTHER, THE FEDERAL EMPOWERMENT ZONES.
I, I DO THINK THOSE WERE DISSOLVED A FEDERAL BENEFIT.
I THINK IT'S FOR THINGS LIKE FEDERAL INCOME TAXES, UM, THIS OF COURSE WOULD, WOULD BE COMPLETELY SEPARATE, UH, LOCALLY CONTROLLED.
SO YOU AS A CITY, AS LEAD AGENCY WITH SOME INPUT FROM THE COUNTY WOULD BE GOVERNING THIS PIECE OF IT.
AND TECHNICALLY THE STATE COULD END THE PROGRAM, I'M ASSUMING, JUST LIKE THEY DID REDEVELOPMENT.
UM, BUT THEN THEY WOULD HAVE TO HONOR THOSE COMMITMENTS JUST LIKE THEY DID IN REDEVELOPMENT ONCE YOU ISSUE DEBT, YOU KNOW, THAT WAS CLEARLY IT'S ALREADY BEEN ISSUED AND SO THEY COULD PROBABLY DO WHAT THEY DID WITH REDEVELOPMENT AND AT SOME POINT END IT.
UM, BUT THEN WE'RE, WE'RE STILL GONNA BE PAYING OFF, YOU KNOW, UM, RDA TYPE DEBT AND RDA OBLIGATIONS FROM MANY, MANY YEARS.
SO, UH, THERE'S BEEN A PATTERN OF DOING THAT.
NOT THAT WE SUPPORTED THAT, BUT, UM, YOU KNOW, WE WERE NOT HURT FINANCIALLY, UM, YOU KNOW, FROM, YOU KNOW, FROM OBLIGATIONS WE ALREADY MADE.
WE JUST WEREN'T ABLE TO DO ANY FUTURE DOLLARS.
I, I I I WOULD ADD COUNCIL MEMBER A POINT ABOUT MOTIVATION, OUR UNDERSTANDING OF WHY THE STATE DISSOLVED THOSE REDEVELOPMENT AGENCIES WAS THE STATE GENERAL FUND WAS ON THE HOOK FOR BACKFILLING THOSE EDUCATIONAL INSTITUTIONS THAT WERE ABLE TO PARTICIPATE IN THOSE FINANCING DISTRICTS THIS TIME AROUND THE SCHOOL DISTRICTS COULDN'T PLAY EVEN IF THEY WANTED TO.
THEY ARE EXPRESSLY FORBIDDEN ON COMPETING ON COMMITTING THEIR DOLLARS.
AND THAT MEANS THAT WE'RE NOT TOUCHING IN ANY WAY THE STATE GENERAL FUND, THEY'RE NOT ON THE HOOK.
WE CAN'T AFFECT ANYTHING ABOUT THEIR REVENUES.
AND SO WE THINK THAT IS A, A VERY IMPORTANT DIFFERENCE FROM THAT OLD TYPE OF REDEVELOPMENT AGENCY, WHICH REMOVES THAT MOTIVATION FOR THEM TO TRY TO DISSOLVE THIS THING.
YOU, I, UM, I LIKE THE IDEA OF THE ESTABLISHMENT, NO PFA, PUBLIC FINANCING, FINANCING AUTHORITY.
I THINK THAT'LL HELP A LOT IN TERMS OF KEEPING, KEEPING AN EYE ON AND KEEP CONTROL OF AS TO WHAT'S OCCURRING WITH THIS, WITH THIS, UH, PROJECT.
ANY OTHER QUESTIONS FROM THE CITY COUNCIL? OKAY.
HEARING NONE THAT, THAT CLOSE THIS DISCUSSION, CAN YOU PLEASE READ THE, UH, ITEM FOR CLOSED SESSION? WE'LL HAVE TO TAKE A VOTE ON THIS ITEM, WRAP UP THIS MEETING, AND THEN WE CAN MOVE INTO CLOSED SESSION.
THANK, CAN I HAVE A MOTION A SECOND? WE HAVE A MOTION FROM UM, CD NINE AND A SECOND FROM CD FIVE.
NOW GOING THE READ AND CLOSE THE SESSION ITEMS,
[00:45:01]
PLEASE IF YOU COULD JUST GIVE US A MOMENT TO SWITCH OVER MEETINGS AND THEN WE CAN GET STARTED.