3.B. Consider approval of a Resolution of the Town of Northlake, Texas, providing notification of intent to establish a reinvestment zone to provide for tax abatement; providing for required public hearing set to be held on March 13, 2025, at 5:30 p.m., during the Regular Town Council Meeting; and providing an effective date

[3.B. Consider approval of a Resolution of the Town of Northlake, Texas, providing notification of intent to establish a reinvestment zone to provide for tax abatement; providing for required public hearing set to be held on March 13, 2025, at 5:30 p.m., during the Regular Town Council Meeting; and providing an effective date]

AHEAD. COULD YOU GIVE JUST A QUICK EXPLAINER ON WHAT PART OF THE PROCESS THIS IS AND WHY WE'RE DOING IT? SO AS YOU'LL RECALL, WE'VE HAD A LENGTHY NEGOTIATION WITH MICHAEL CARTER AND HIS DEVELOPMENT. IT'S ON 407 BEHIND THE STORAGE UNIT. ONE OF THE THINGS THAT COUNCIL AGREED TO IN THESE NEGOTIATIONS WAS A LOT OF BACK AND FORTH, WAS TO PROVIDE TAX ABATEMENTS. IN ORDER TO PROVIDE TAX ABATEMENTS, YOU HAVE TO CREATE AND REINVESTMENT ZONE. IN ORDER TO CREATE A REINVESTMENT ZONE, YOU HAVE TO CALL A PUBLIC HEARING AND GIVE THE PUBLIC NOTICE THAT YOU'RE GOING TO CREATE THAT ZONE. SO THIS IS STEP ONE OF A MULTI STEP PROCESS. AND THIS IS FOLLOWING THAT DEVELOPMENT AGREEMENT THAT YOU APPROVED SOME MEETINGS AGO. AND MR. CORN THIS WAS A PROPERTY. IT HAD ZERO TAXABLE INCOME BECAUSE THEY WERE IN THE ETJ THERE IN THE ETJ. AND THEY WERE EXEMPT AS WELL AS THAT. YES SIR. YES. SO WE'RE GETTING WE'RE GETTING WHAT WAS THE PIECE OF THE PIE. WE'RE GETTING A PIECE OF A PIE THAT WE DIDN'T HAVE AT ALL BEFORE. YOU'RE GETTING SOMETHING FROM NOTHING. YEAH. YOU'RE GETTING INSTEAD OF GETTING 100% OF NOTHING, YOU'RE GETTING SOMETHING FROM SOMETHING LEAVES SOMETHING. SO, YEAH, THERE'S A SONG IN THERE SO ELOQUENT I. YES. AND THE, THE ABATEMENT LENGTH WAS MUCH SHORTER THAN ANY OF THESE CORPORATE. WAS THIS A SIX MONTH SLIDING SCALE ABATEMENT? SIX YEARS. I'M SORRY. SIX YEAR. AND THEN IT IT DROPPED 20% EACH YEAR. SO IT MOVES DOWN PRETTY QUICK. AND THEN WE GET WE GET JOE'S FULL 29.5 CENTS AT THE END OF THE SEVENTH YEAR. YES. OKAY. VERY GOOD. SO YEAH, THE KEY

[00:10:01]

PORTION OF THIS NEGOTIATION WAS TO HELP THEM GET INTO TOWN SO WE COULD GET PROPERTY TAXES. THIS

[3.B. VOTE]

WAS WHEN NEGOTIATING TACTICS THAT WE HAD TO IMPLEMENT TO APPROVE. THANK YOU, MISS HOLMES.

I HAVE A MOTION FROM MISS HOLMES. I'LL SECOND. SECOND FROM MAYOR PRO TEM LAWRENCE. WE'LL TAKE A VOTE. MOTION CARRIES. UNANIMOUS. ALL RIGHT. AND WE WILL JUMP INTO OUR

[4.A. Consider an Ordinance of the Town of Northlake, Texas, amending Chapter 9A of the Code of Ordinances of the Town, the same being the Unified Development Code of the Town of Northlake, and amending Ordinance No. 21-0722F, by changing the development standards and concept plan on that certain tract of land legally described as an approximately 251.044 acre tract of land situated in the M.E.P. & P.R.R. Survey, Abstract No. 910, the H. Anderson Survey, Abstract No. 25, and the S.A. Venters Survey, Abstract No. 1313; providing that such tract of land shall be used in accordance with the requirements of the Unified Development Code and all other applicable ordinances of the Town except as modified herein; providing severability, repealing and savings clauses; providing a penalty; providing for publication and an effective date. Case # 25-PDA00001]

ACTION ITEMS AT 5:40 P.M. ANYBODY FROM. THERE HE COMES. YOU'RE BEING SHY TONIGHT. THERE.

YOU CALL HIM? I WAS WAITING FOR YOU TO CALL ME. NO, NO. COME ON NOW. DROPPING THE BALL AGAIN.

ALL RIGHT. THIS IS A REQUEST FOR AMENDMENT TO THE INDUSTRIAL PLAN DEVELOPMENT THAT COVERS ABOUT 251 ACRES IN OUR KATHERINE BRANCH INDUSTRIAL DISTRICT, NORTH OF THE SPEEDWAY. DHL IS DEVELOPING THIS PROPERTY. AND ALSO OF NOTE, IT'S IN ON THE FUTURE LAND USE PLAN. IT'S INTENDED FOR INDUSTRIAL USE AND THE INDUSTRIAL INNOVATION PLACE TYPE. SO THIS IS THE LOCATION.

THEY'VE ACTUALLY BUILT KIND OF THE MASTER INFRASTRUCTURE FOR THIS DEVELOPMENT ALREADY INCLUDES A NEW STREET, MACPHERSON ROAD, AND REALIGNMENT OF STREETS IN THAT AREA. SO LIKE I SAID, THIS IS ALREADY ZONED INDUSTRIAL PLAN DEVELOPMENT THAT THAT ZONING IS BASED ON OUR BASE INDUSTRIAL ZONING WITH JUST A FEW MODIFICATIONS. YOU'LL NOTICE THE DHL PROPERTY IS TITLED SUBJECT PROPERTY. ON THAT MAP, THERE IS AN ADJACENT INDUSTRIAL PLAN DEVELOPMENT ON THE WEST AND TO THE SOUTH OF IT THAT HAS A FEW DIFFERENT STANDARDS. SO REALLY THE REASON FOR THE THIS REQUEST IS TO MORE CLOSELY ALIGN WITH THAT ADJACENT PLAN DEVELOPMENT, SO THAT ALL THE STANDARDS MATCH UP. SO IN YOUR PACKET, THE CHANGES FROM THE EXISTING PLAN DEVELOPMENT ARE HIGHLIGHTED. AND THEN THE PROPOSED ORDINANCE AND THESE INCLUDE AN UPDATED CONCEPT PLAN WHICH HAS SINCE BEEN REFINED AS THEY'VE CONTINUED DEVELOPMENT PLANNING SOME ADDITIONAL PERMITTED USES, INCREASE IN THE MAXIMUM HEIGHT ALLOWED. INCREASE IN THE FLOOR AREA. SO THE AMOUNT OF FLOOR IS COMPARED TO LAND AREA AND CHANGES TO SOME PARKING STANDARDS, INCLUDING AN ALLOWANCE OF A MINIMUM NINE BY 18 PARKING SPACE SIZE, SOME SPECIFIC SCREENING AND FENCING STANDARDS APPLICABLE TO DEVELOPMENT, AND FOR SCREENING OF OUTDOOR STORAGE. ALSO, A WAIVER OF OIL AND GAS WELL DRILLING REGULATIONS FROM THE TOWN, AND AN ADDITION OF A MINIMUM OPEN SPACE REQUIREMENT THAT WASN'T CURRENTLY INCLUDED IN THE PLANNED DEVELOPMENT. AND AS A REMINDER, THIS IS THIS IS THE CONCEPT PLAN. LIKE I SAID, THERE'S BEEN SOME MINOR CHANGES SINCE IT WAS ORIGINALLY INCLUDED IN THE PLAN DEVELOPMENT AND THE DEVELOPMENT AGREEMENT THAT WAS APPROVED BY COUNCIL. BUT AT THIS TIME, I'D LIKE TO INTRODUCE JEFF MEYER WITH DHL. HE'S HERE REPRESENTING DHL AS THE APPLICANT. THEIR ENGINEER HERE IS HERE AS WELL. IF YOU HAVE ANYTHING TO SAY OR WANT TO ANSWER ANY QUESTIONS OF THE COUNCIL. THANKS. YOU'RE WELCOME.

IT'S GOOD TO HAVE YOU BACK HERE AFTER. IT'S BEEN A WHILE. YEAH, IT HAS BEEN A WHILE. BUILDING THAT ROAD TOOK A LITTLE LONGER THAN THAN WE THOUGHT, MR. MAYOR. THANK YOU. JEFF MEYER WITH DHL SUPPLY CHAIN. AND REALLY NO COMMENTS OTHER THAN THE REQUEST THAT WAS NOTED RELATIVE TO THE OIL AND GAS. WELL, SETBACKS. WE'VE GONE BACK, TAKEN ANOTHER LOOK AND WE'RE FINE WITH PULLING THAT FROM FROM THE REQUEST, BUT HAPPY TO ANSWER ANY OTHER QUESTIONS THAT YOU ALL MIGHT HAVE ABOUT THE PROJECT COUNCIL. DO YOU HAVE ANY OTHER QUESTIONS ABOUT THE PROJECT? I WANT TO THANK YOU FOR PULLING THAT, BECAUSE THAT WAS A ISSUE THAT I HAD, AND I THINK IT'S A REALLY SMART MOVE FOR YOU GUYS, AND A GREAT SIGN OF COOPERATION WITH THE COUNCIL. SO I APPRECIATE YOU

[00:15:01]

GUYS LOOKING AT THAT. AND JUST YOUR CONTINUED SUPPORT OF THE TOWN HAS BEEN WELL RECEIVED. SO I APPRECIATE APPRECIATE YOU COMING OUT TONIGHT. SPEND SOME TIME WITH US IF THERE'S NOTHING ELSE FOR HIM. THANK YOU SO MUCH FOR THIS HERE. WE DO HAVE TO HOLD A PUBLIC HEARING TONIGHT.

SO IF THERE'S NO OBJECTION, I WILL OPEN THE PUBLIC HEARING AT 5:45 P.M. DO I HAVE ANYBODY WHO'D LIKE TO SPEAK ON THIS PROJECT? JOEL? YOU SURE? ANYTHING ABOUT THE PUBLIC? IS THAT OKAY? ALL RIGHT, SO PROPERTY IS 5:46 P.M. I WILL CLOSE THE PUBLIC HEARING.

COUNCIL, DO YOU HAVE ANY POINTS OF DISCUSSION OR ANYTHING ELSE TO DISCUSS ON THIS? QUIET

[4.A. VOTE]

COUNCIL TONIGHT? ALL RIGHT. WE LIKE IT. ALL RIGHT. WE WILL GO AHEAD AND TAKE MOTIONS. MAYOR, IF I MAY, IF YOU WOULD HAVE A MOTION TO REMOVE THREE K OF THE DEVELOPMENT STANDARDS, A MOTION TO APPROVE WITH THE REMOVAL OF THREE K LINE THREE K OF THE DEVELOPMENT STANDARDS. IF YOU AGREE WITH THAT YOU CAN SAY SO MOVED OR YOU CAN REPEAT IT TO ME OKAY. ALL RIGHT. I HAVE A MOTION FROM MISS HOLMES. I'LL SECOND THE SECOND FROM MR. FOWLER. THANK YOU. AND WE WILL GO AHEAD AND TAKE A VOTE. I WANT TO SAY THAT I'M ALWAYS SO MOVED WHEN YOU TALK TO MOTION CARRIES UNANIMOUSLY. AND I'M GLAD YOU PD IS ALL SET. THANK YOU SIR. WELCOME TO NORTH LAKE AGAIN, I GUESS. ALL RIGHT. ITEM B, THIS IS OUR SECOND HALF OF THE BONDS THAT WE PUT OFF. SO WE

[4.B. Consider approval of an Ordinance of the Town of Northlake, Texas, authorizing the issuance of Town of Northlake, Texas, General Obligation Bonds, Taxable Series 2025 in the aggregate estimated principal amount of $22,290,000; awarding the sale thereof; levying a tax, and providing for the security for and payment of said bonds; authorizing the execution and delivery of a paying agent/registrar agreement; approving the official statement; enacting other provisions relating to the subject; and declaring an effective date]

WON'T BE CARRYING AN INTEREST LOAD. OVER THE PAST YEAR DURING CONSTRUCTION. WE HAVE JOHN HERE TO COME UP AND TALK ABOUT THAT A LITTLE FURTHER. BUT THIS IS BASICALLY TAKING THAT SECOND HALF ON THE STAR CENTER. AND THE KEY REASON FOR THIS IS SO WE DIDN'T PAY INTEREST FOR PAST YEAR AND CHANGE. YES. VERY GOOD OKAY. SO JUST I'M GOING TO OFFER JUST A LITTLE BIT OF A PRIMER AND REVIEW OF THE GENERAL OBLIGATION BONDS ITSELF. AND THEN WE DO HAVE OUR FINANCIAL ADVISOR AND BOND COUNSEL HERE AS WELL. SO THEY CAN ANSWER MORE DETAILED QUESTIONS IF YOU ALL HAPPEN TO HAVE ANY. BUT JUST BRIEFLY, AS YOU ALL KNOW, 22.5 MILLION IS WHAT'S NEEDED FOR WAS BUDGETED FOR THIS YEAR AS PART OF THE $45 MILLION FOR THE STAR CENTER PROJECT, AND THAT WAS APPROVED BY VOTERS BACK IN NOVEMBER 7TH OF 23. AND THEN COUNCIL APPROVED THAT FIRST TRANCHE OF THE GENERAL OBLIGATION BONDS ON APRIL 15TH OF 2024. AND WHEN WE DID THAT, WE RECEIVED $22.71 MILLION IN DEBT ISSUANCE. AND WE'LL TALK A LITTLE BIT MORE ABOUT THAT IN A SECOND. WHY THAT NUMBER IS IMPORTANT. BUT ON JANUARY 9TH, COUNCIL WAS BRIEFED AGAIN ON THE UPCOMING DEBT ISSUANCES. AND THEN ON THE 27TH TODAY, COUNCIL IS CONSIDERING APPROVING THE SECOND TRANCHE IN THE AMOUNT OF ABOUT 22.29 MILLION FOR THAT ISSUANCE. SO AS I MENTIONED, THAT 22.71 IS AN IMPORTANT NUMBER JUST TO REMEMBER. SO THE TOWN IS RESTRICTED TO ISSUING ONLY UP TO $45 MILLION IN GENERAL OBLIGATION BONDS. AND THAT INCLUDES ANY ISSUANCE COSTS THAT ARE BUILT INTO THE BONDS THEMSELVES THAT WE HAVE TO COVER AND PAY FOR OUT OF THOSE BONDS.

SO WITH THE 2024, WE RECEIVED 22.71 MILLION, 22.5 MILLION OF THAT WENT TO THE PROJECT FUND, AND THEN 210,000 WAS USED TO PAY FOR THE ISSUANCE COSTS THAT ARE ASSOCIATED WITH WITH RECEIVING THAT BOND. AND SO WITH THE 2025 GEO, WE'RE ABLE TO BECAUSE WE'VE ALREADY DONE 22.71 OF THAT 45 MILLION, WE'RE ABLE TO TAKE OUT 22.29 MILLION FOR THE PROJECT FUND. AND WE'RE EXPECTING THAT THE PREMIUM THAT'S BUILT IN WITH THIS BOND WILL COVER THE ISSUANCE COSTS. AND SO THE RESULT IS THAT THE TOTAL PROJECT FUND FROM THESE BOND ISSUANCES IS 44.79 MILLION. SO THERE IS A DIFFERENCE BETWEEN THAT 45 AND THAT 44.8 OF 210,000, WHICH WAS THE COST OF THE FIRST ISSUANCE THAT WE HAD TO PAY FOR. AND SO THE DIFFERENCE IS PRIMARILY DUE TO THE PREMIUM WITH THE 2024 GEO JUST DIDN'T COVER THE FULL COST OF ISSUANCE, UNLIKE WE WERE ABLE TO BUILD IN HERE WITH THE 2025 AND GET US AS CLOSE AS WE CAN TO MAXING OUT THE PROJECT FUND, AND THEN JUST A LITTLE BIT OF REVIEW ON THE DETAILS OF THE SCHEDULE JUST TODAY IS THE BOND PRICING HAPPENED TODAY. COUNCIL IS CONSIDERING PASSING THE ORDINANCE TO ACTUALLY AUTHORIZE THE ISSUANCE OF THOSE BONDS. AND THEN ON MARCH 27TH IS WHEN WE ASSUMING COUNCIL GOES AHEAD AND AUTHORIZES, WE'RE EXPECTING THE DELIVERY OF THOSE FUNDS. AND THE TOTAL ISSUANCE SHOULD BE BASED ON THE NUMBERS THAT WE'VE GOTTEN TODAY. THE MOST RECENT ONES, 22 AND 22,280,000. SO WITH THAT, JUST I CAN ANSWER ANY QUESTIONS.

[00:20:08]

AND IF YOU HAVE ANYTHING MORE DETAILED THAT I CAN ANSWER, LIKE I SAID, OUR WONDERFUL FINANCIAL ADVISOR AND BOND COUNSEL ARE BOTH HERE AND CAN ANSWER QUESTIONS AS WELL. MARTY, WOULD YOU LIKE TO COME UP FOR ANY POINTS? OR MAYBE YOU CAN TELL US IF WE DID A LITTLE BETTER ON RATES THIS TIME, OR DO YOU THINK WE'RE GOING TO DO BETTER? SURE. GOOD EVENING. MAYOR AND COUNCIL MARTY HSU WITH HILLTOP SECURITIES. WE REPRESENT THE TOWN IS YOUR FINANCIAL ADVISOR.

WE DID PUT TOGETHER THESE SMALL BOOKLETS THAT I THINK WE PASSED OUT THAT JUST HAVE SOME ADDITIONAL COLOR. THAT WAS A FANTASTIC PRESENTATION. YOUR BONDS WERE SOLD THROUGH A NEGOTIATED SALE, WHICH MEANS THE UNDERWRITERS WERE SELECTED IN ADVANCE. THAT GAVE THEM THE OPPORTUNITY TO PRE MARKET AND SELL YOUR BONDS TO THE PUBLIC IN ADVANCE OF THEIR RELEASE THIS MORNING. SO THEY WERE OFFICIALLY RELEASED OUT AND THEY DID TURN A BID TO UNDERWRITE BACK. YOU HAD VERY FAVORABLE MARKET RESULTS. THE BONDS WERE OVERSUBSCRIBED, YOUR TAXABLE DEBT, YOUR FINAL TRUE INTEREST COST FOR YOUR TAXABLE GEO BONDS SOLD AT A 5.46%. AND I WILL NOTE THAT IS JUST A LITTLE BIT BELOW THE RATE THAT THEY SOLD AT IN 2024, WHICH WAS A 5.52%. SO AS YOU CAN IMAGINE IN THE HEADLINES, WE'VE SEEN SO MUCH MARKET VOLATILITY OVER THE LAST COUPLE YEARS, I THINK THAT TO HAVE THE TWO RATES BE SO CLOSE TO EACH OTHER SPEAKS TO A LOT OF STABILITY AND WHAT YOU'RE ABLE TO ACHIEVE FROM THE MARKET, THAT'S REALLY A POSITIVE RESULT. SO YOUR PAYMENTS ON THIS SERIES ARE A LITTLE BIT BELOW THAT OF YOUR ONES FROM LAST YEAR. AS PART OF THE BOND ISSUANCE PROCESS, YOU DID HAVE TO APPLY FOR AND PURCHASE A BOND RATING. SO AS YOU MAY RECALL FROM PRIOR ISSUES, THE RATING AGENCIES COME IN AND THEY ASK A LOT OF QUESTIONS. STAFF HAS TO PROVIDE A LOT OF INFORMATION, PREPARE A LOT OF INFORMATION FOR THEM SO THAT THEY CAN DO A FULL CREDIT ASSESSMENT ON THE CITY. THE CITY DID APPLY FOR A RATING FROM BOTH S&P GLOBAL AND FITCH, WHO HAVE HISTORICALLY RATED THEM. FITCH WAS BROUGHT IN LAST YEAR AS A NEW RATING, AND I'M PLEASED TO REPORT THAT BOTH RATING AGENCIES DID AFFIRM THE CREDIT RATING AT THE DOUBLE-A LEVEL FOR THE TOWN, AND THAT'S VERY SIGNIFICANT. THAT IS A HIGH CREDIT RATING. THE CREDIT RATING OF THE TOWN IS JUST LIKE YOU OR I, OUR OWN PERSONAL CREDIT RATING. SO THE HIGHER YOUR CREDIT RATING, THE LOWER THE COST OF BORROWING. WHEN YOU GO TO APPLY FOR A MORTGAGE OR PURCHASE A CAR. SAME HOLDS TRUE FOR THE TOWN, SO THE HIGHER YOUR CREDIT RATING, IT TRANSLATES TO LOWER BORROWING COSTS. WHEN YOU ISSUE DEBT. AND I THINK IT'S SIGNIFICANT TO NOTE THAT YOU'RE ONLY TWO NOTCHES AWAY FROM A PERFECT SCORE. SO YOU ARE IN A VERY ELITE CATEGORY OF RATINGS ON YOUR GENERAL OBLIGATION DEBT. AND I THINK WE'RE GOING TO TALK ABOUT THE HOT DEBT HERE IN A MINUTE. BUT THAT THAT HAS A LITTLE BIT OF A DIFFERENT RATING OUTCOME. IT SHOULDN'T BE ALARMED. STILL GOOD RESULTS. BUT ALL IN ALL, WE THINK YOU SHOULD BE VERY PLEASED. AND WE DO. AS PART OF THE BOOKLETS, WE'VE INCLUDED A FULL SET OF THE NUMBERS FOR EACH OF THE TRANSACTIONS. AND THEN BEHIND THE LAST TAB WE DO HAVE THE FULL RATING REPORTS INCLUDED. I ENCOURAGE YOU TO READ THOSE BECAUSE THEY DO FOCUS IN ON THE STRONG FINANCIAL MANAGEMENT AND CONDITION OF THE TOWN. SO ALL IN ALL, VERY FAVORABLE RESULTS. THANK YOU VERY MUCH, I APPRECIATE THAT. I'M SURE WE'LL HEAR FROM YOU IN ANOTHER MOMENT HERE. ONCE WE HANDLE ITEM B JOHN, DO YOU HAVE ANYTHING ELSE OR. NO. OKAY. THAT'S IT. COUNCIL. ANY QUESTIONS ON THIS ONGOING PROJECT. I'M VERY PROUD THAT WE'VE MAINTAINED THIS CREDIT RATING. IT'S A TESTAMENT TO THE MANAGEMENT OF JOHN AND HIS TEAM AND THE COUNCIL'S POLICIES THAT HAVE KEPT US IN A

[4.B. VOTE]

STRONG POSITION. SO THANK YOU. ALL RIGHT. I WILL TAKE MOTIONS ON ITEM B. OH, I THINK WE HAVE SOME SPECIFIC LANGUAGE WE HAVE TO USE. THANK YOU TEXAS LEGISLATURE. OKAY. IT'S ON ONE OF YOUR SCREEN JIMMY TO READ IT. MOTION TO APPROVE THE ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF THE TOWN. GENERAL OBLIGATION BONDS, TAXABLE SERIES 2025, AND THE PRINCIPAL AMOUNT OF 22 MILLION 22,280,000 AS PRESENTED. THANK YOU, MISS HOLMES. I WILL SECOND THAT MOTION. AND WE WILL TAKE A VOTE. MOTION CARRIES UNANIMOUSLY. 6 TO 0. MOTION PASSES. AND JOHN, IF

[4.C. Consider approval of an Ordinance of the Town of Northlake, Texas, authorizing the Issuance and Sale of Town of Northlake, Texas, Hotel Occupancy Tax Revenue Bonds, Taxable Series 2025 in an aggregate estimated principal amount of $5,210,000; providing for the award and sale of the bonds; approving the official statement; approving execution and delivery of a paying agent agreement; enacting other provisions relating to the subject]

YOU CARE TO JOIN US FOR ITEM C, I WOULD LOVE TO AS DREW JUST SAID. SO OKAY. SO CONTINUING ON.

[00:25:02]