Mar 19, 2026 Community Development & Economic Development Corporations Joint Meeting

[1. CALL TO ORDER]

[00:00:07]

ALL RIGHT. GOOD EVENING. IT IS 6:01 P.M. AND WE WILL CALL TO ORDER THE ECONOMIC DEVELOPMENT CORPORATION MEETING. 6:01 P.M. WE WILL CALL TO ORDER THE COMMUNITY DEVELOPMENT

[2.A. Briefing - Proposed Municipal Development District (MDD) Creation & Development Corporations Dissolution]

SO YOU COULD HAVE SOMETHING MAYBE ADJACENT RIGHT NEXT TO IT THAT COULD HAVE BENEFIT TO THE DISTRICT AND BE ABLE TO USE THAT FUNDING FOR. IT'S A AN ADDITIONAL BONUS OF THE DISTRICT THAT THE DEVELOPMENT CORPORATION STILL HAVE. SO THE PROPOSED DISTRIBUTION OF THE LOCAL SALES TAX, IF THE MDD IS APPROVED AND CREATED, IS 1.25% TO THE GENERAL FUND. SO THAT WOULD TAKE PART OF THAT QUARTER CENT REALLOCATED FROM DEVELOPMENT CORPORATIONS. THE REMAINDER WOULD BE A HALF CENT TOTAL WOULD GO TO THE MDD. THE REASON FOR THIS IS STATE LAW SAYS THAT MDD CAN MAX OUT AT A HALF CENT, SO THAT'S WHY IT'S SET HERE. BUT BECAUSE THE MDD WOULD BE LARGER THAN THE CURRENT EDC AND CDC BOUNDARIES INCLUDE ETJ. WE'RE EXPECTING THAT DIFFERENCE IN SALES TAX COLLECTED WON'T BE THAT SIGNIFICANT, AND YOU ADD GROWTH ON TOP OF THAT AT THE SAME TIME. AND THEN WE'D STILL HAVE THAT QUARTER CENT SPORTS VENUE TAX.

[00:05:04]

THEN THOSE FUNDS COULD BE TRANSFERRED TO THE MDD THROUGH AN INTERLOCAL AGREEMENT WITH THE TOWN. BUT THE TOWN AND OR THE MDD, IF THERE'S AN AGREEMENT AND THOSE FUNDS GO TO THE MDD, WOULD HAVE TO CONTINUE PAYING ANY OBLIGATIONS OF THE EDC AND CDC UNTIL THOSE ARE FULFILLED. SO IF THERE'S ANY INCENTIVE AGREEMENTS THAT WE STILL OWE MONEY ON IN THE ACT ON ONE TONIGHT, THAT OBLIGATION WOULD LIVE ON AND LIKELY BE TAKEN OVER BY BY THE MDD AND CAN USE THE REMAINING FUND BALANCES IN THE EDC AND CDC FUNDS FOR THAT. SO FOR THIS TO HAPPEN, IT HAS TO GO TO A VOTE OF THE PEOPLE. SO THERE'S ACTUALLY TWO PROPOSITIONS THAT WILL BE CONSIDERED. TOWN COUNCIL HAS CALLED THIS SPECIAL ELECTION AND COPY OF THE ORDINANCE. APPROVING THAT WITH THE FULL BALLOT LANGUAGE IS IN YOUR PACKET. BUT JUST TO SUMMARIZE IT, PROPOSITION A WOULD CREATE THE MDD, BUT IT'S SUBJECT TO APPROVAL OF PROPOSITION B, WHICH TERMINATES THE DEVELOPMENT CORPORATIONS. SO THAT WAY YOU CAN'T CREATE THE MDD WITH A HALF CENT SALES TAX WITHOUT GETTING RID OF THE DEVELOPMENT CORPORATION TAXES.

SO THAT PROPOSITION A. VOTERS IN THE TOWN LIMITS AND THE ETJ AREA OF THE PROPOSED MDD CAN VOTE ON THAT PROPOSITION. PROPOSITION B WOULD BE TERMINATING THE DEVELOPMENT CORPORATIONS, SUBJECT TO APPROVAL OF PROPOSITION A AS DON'T WANT TO GET RID OF THEM.

IF YOU'RE NOT GOING TO CREATE THE MDD TO REPLACE IT. SO PROPOSITION B WOULD ABOLISH THE EDC AND CDC SALES TAXES AND REALLOCATE THEM. AS PREVIOUSLY DISCUSSED, AND ONLY NORTHLAKE VOTERS IN THE TOWN LIMITS COULD VOTE ON THAT PROPOSITION BECAUSE IT JUST APPLIES TO THE EDC AND CDC SALES TAX, WHICH CURRENTLY JUST APPLIES TO THE TOWN LIMITS. SO THIS WILL BE GOING ON TO VOTE ON ELECTION DAY, MAY 2ND, AND EARLY VOTING FOR THAT WILL BE APRIL 20TH THROUGH 28TH. SO YOU'LL PROBABLY START SEEING MORE INFORMATION ROLL OUT ON THIS AS WE APPROACH THE THE ELECTION AND THE INFORMATION THAT THE TOWN PUTS OUT HAS TO JUST BE FACTUAL ABOUT IT. WE CANNOT PUT THINGS OUT TO NECESSARILY SUPPORT IT OR AGAINST IT OR ANYTHING. WE'RE NOT ELECTIONEERING FOR IT. WE'RE JUST PUTTING OUT THE FACTS FOR IT. SO ANY QUESTIONS? YES OR NO. YOU RECEIVED AN EMAIL FROM JERRY PREVIOUSLY ABOUT THIS BEING CONSIDERED AND WHETHER YOU'D BE INTERESTED IN SERVING IN ON THE MDD BOARD IF IT IS CREATED. YES. I WAS JUST CURIOUS, LIKE, WHERE DID THE IDEA COME FROM? WHERE DID IT START? THIS THIS HAS BEEN SOMETHING THAT STAFF HAS BEEN. TALKING ABOUT FOR A WHILE. WE INTRODUCED THE IDEA TO COUNCIL IN THE MAYOR, AND IT WAS THE MAYOR AND COUNCIL ARE THE ONES THAT DECIDED THEY WANTED TO MOVE FORWARD WITH THIS. AND WHAT DO YOU MEAN BY ENHANCING? SO IT'S GOING FROM TWO DOWN TO ONE DOWN TO FOUR. SO I'M JUST TRYING TO FIGURE OUT WHAT DOES IT MEAN BY ENHANCING. IT'S EVEN THOUGH THE SCOPE IS MUCH LARGER. YEAH, IT'S MORE IT'S MORE EFFICIENT. YOU'RE NOT HAVING TWO BOARDS AND HAVING TO MANAGE THE TWO BOARDS AND TWO FUNDS.

THERE'S SOME RULES THAT APPLY TO DEVELOPMENT CORPORATIONS THAT DON'T APPLY TO THE MDD, WHICH MAKES IT A LITTLE BIT EASIER TO FUNCTION. ONE OF THOSE IS FOR TYPE B PROJECTS.

YOU HAVE TO DELAY SPENDING THOSE FUNDS FOR 60 DAYS. WE HAVE TO PROVIDE NOTICE, AND THEN YOU CAN'T SPEND THOSE FUNDS FOR 60 DAYS. THAT DOESN'T APPLY FOR NEEDS. AND IT'S SO WE STILL HAVE THAT SALES TAX, BUT WE EXPAND THE BASE OF IT BECAUSE YOU'RE ADDING IN THE ETJ AREA. SO THAT'S IT'S NOT A HUGE ENHANCEMENT. IT'S VERY SIMILAR TO WHAT WE HAVE, BUT IT'S VERY IT'S MORE EFFICIENT AND IT EXPANDS THE AREA WHERE YOU CAN COLLECT THE TAXES. AND

[00:10:03]

COULD POTENTIALLY GET SOME PRETTY HEALTHY SALES TAX FROM THOSE WE DO FROM THE ONE SALES TAX PLANT THAT'S IN THE TOWN LIMITS. SO THAT WOULD BE A PRETTY BIG WIN FOR US. THERE'S SOME SOME BUSINESSES WE'RE ACTUALLY CURRENTLY WORKING WITH AND HOPEFUL THAT WE'LL BE ABLE TO GET INTO TOWN SOON. BUT LIKE THE HILLTOP FOOD TRUCK PARK AND THOSE BUSINESSES ARE CURRENTLY OUTSIDE THE TOWN. BUT ONCE SOMETHING IS ANNEXED IN, IT'S AUTOMATICALLY, AUTOMATICALLY BECOME A PART OF IT. IF IT WASN'T IN THE MD ALREADY. SO SO THAT'S A, I THINK THAT WAS ANOTHER STRATEGIC PART OF LEAVING OUT HARVEST BECAUSE ULTIMATELY, IF IT GETS ANNEXED IN, THEN IT WOULD BECOME A PART OF THE MDD. HAVE A COUPLE QUESTIONS ABOUT THAT. YOU STATED LEAVING OUT HARVEST. ARE YOU LEAVING OUT HARVEST IN ALL ASPECTS OF THIS? SO NOT IN HARVEST. YES. WE'RE LEAVING OUT EVERYTHING COMPLETELY. SO THEY HAVE NO MEMBERSHIP IN THE BOARD.

THEY HAVE. WE'RE NOT COLLECTING TAXES. CORRECT? THAT'S CORRECT. THE ONLY PART OF HARVEST THAT WE WOULD BE INCLUDED IS THERE'S A SMALL PART OF THE COMMERCIAL AREA UP HERE THAT'S IN THE ETJ.

IT WAS ORIGINALLY A PART OF HARVEST THAT'S IN A SPECIAL PURPOSE ANNEXATION AREA WHERE IT'S ANNEXATION ANNEXED ONLY FOR THE PURPOSE OF SALES TAX. SO WE CONTINUE TO BE ABLE TO COLLECT THE SALES TAX FROM THAT, INCLUDING THE MVP. WORD THAT YOU USED ABOUT THE PIONEER DREAMS. YOU SAID THAT THEY WOULD LIKELY LIVE ON. BUT SIR, YOU KNOW WHAT? YOU WENT THROUGH THE PIONEER GRANTS AND GRANTS THAT ARE ALREADY IN PLACE AND HAVE PERFORMANCE BASED UP. AND YOU SAID THOSE WOULD LIKELY LIVE ON. WELL, THEY DID. ANY OUTSTANDING OBLIGATIONS WOULD HAVE TO LIVE ON AND THEY'RE GOING TO LIVE ON. YEAH. IT'S JUST WHO'S GOING TO BE THE ONE THAT FULFILLS IT? IS IT THE TOWN'S GOING TO GET THE EDC AND CDC FUNDS THE FUND BALANCE, SO IT WOULD BE ON THE TOWN TO FULFILL THAT. BUT IF THEY HAVE A AGREEMENT WHERE THEY SEND THAT TO THE MD, ULTIMATELY, THEN IT WOULD BE THE MD TO FULFILL THAT OBLIGATION. IT'S JUST A MATTER OF WHO DOES THE OBLIGATIONS. IT'S STILL THERE. YEAH. YOU'RE NOT GETTING RID OF IT. CAN YOU BACK UP A SECOND? DOES THAT MEAN THAT THE TOWN, THE COUNCIL MAY OR MAY NOT DECIDE TO TAKE THE EXISTING FUNDS AND TRANSFER THEM TO THE MD? IT'S UP TO COUNCIL TO APPROVE. MAY BE TRANSFERRED. YEAH. WHAT WOULD MAKE THEM NOT WANT TO TRANSFER IT TO THE EMBASSY? I DON'T KNOW. MY UNDERSTANDING IS THAT'S THE INTENT. I BELIEVE IT IS SO AND THAT THAT WOULD BE THE SMOOTHEST FOR THE MD TO BASICALLY TO REPLACE THE EDC AND CDC. BUT TECHNICALLY THE MD WITH ZERO FUNDING. YES, YES. YES. AND THAT WOULD BE PUT THEM ON A BETTER ON A BETTER FOOTING BY GIVING THEM THAT FUNDING AS WELL. SO AND IF THEY DON'T GET THE FUNDING, THEN THE MONEY GOES TO THE TOWN. THE FUND BALANCE IN THE EDC AND CDC FUNDS. YEAH. BUT THE MD WOULD START COLLECTING SALES TAX AND THAT'S HOW THEY'D BE FUNDED,

[00:15:03]

DID THEY SAY IT'S LIKELY TO BE AT LEAST FIVE? BECAUSE BEFORE IT'S KIND OF A WEIRD NUMBER TO HAVE FOR A BOARD. YEAH. NATHAN, WHAT'S THE STATUS OF THE MONUMENTS RIGHT NOW? IS IT A COMMITMENT YET OR WHERE DO THOSE STAND? WELL, SO THAT THAT IS SOMETHING THAT'S BUDGETED.

WE DON'T HAVE AN ONGOING OBLIGATION ON THAT. SO THE MD COULD COULD PICK THAT UP AND AND INCLUDE THAT IN THEIR BUDGET. THERE HAS BEEN APPROVAL OF A CONTRACT WITH HALF ASSOCIATES TO DO THE FINAL DESIGN FOR THOSE. SO ANY WORK THEY DO IN THE MEANTIME, WE WOULD WE WOULD OWE AN EDC AND CDC FUNDS. IF BOTH A AND B PASS. WHAT IS THE TIMELINE FOR THE DISSOLUTION OF THE BOARDS? DOES IT HAPPEN IMMEDIATELY? WHAT IS THE TIMEFRAME? YES IT'S OKAY.

IT HAPPENS IMMEDIATELY. SO THIS THIS IS OUR LAST MEETING. IF THIS PASSES THE. I WILL HAVE TO CHECK WITH LEGAL ON THAT. SO THE THE SALES TAX IS THE FUNDING SOURCE ENDS IMMEDIATELY, BUT THERE MAY BE ADDITIONAL WORK TO DO TO CLOSE OUT THE CORPORATION'S. SO. SO THE. SO I CAN'T I CAN'T 100% SAY THIS IS THE LAST MEETING. THERE MAY BE ONE LIKE LAST CLOSEOUT MEETING, BUT JUST THINKING ABOUT THE. BUT WHAT IF IT WORKED OUT THAT WAY? YOU JUST HAVE A. YOU'D HAVE A CORPORATION WITHOUT ANY FUNDING. WOULD THAT AFFECT THE GIFT CARD PROGRAM FOR UP UP HERE ON 407 BECAUSE WE DID THE THE ONE FOR ONE 114 AND I BELIEVE IT WAS CONTINGENT ON DOING ONE UP HERE ALSO. AND THAT WAS THE EDC. CDC JUST INCLUDED FUNDING IN THE BUDGET FOR IT, BUT WE HAVEN'T INITIATED THAT PROJECT YET UNTIL WE'RE GOT STARTED. AND WE SAW THE NEED VOTED ON. AND SO IT WOULD BE SOMETHING THAT THE MD WOULD LIKELY PICK UP. OKAY.

NO GUARANTEE, BUT THEY, THEY, THEY HAVE. AND MOST, MOST LIKELY THEY MIGHT START AT ZERO.

YEAH, THEY MIGHT, THEY MAY 2ND, THEY MIGHT HAVE ZERO MONEY WITH, FOR AND WITH FOR PEOPLE WITH ONE FROM THE ETJ PROBABLY THEY DON'T HAVE TO HAVE ANY FROM THE ETJ, BUT THEY CAN HAVE. ETJ.

OKAY, SO THE AGREEMENT HANDSHAKE AGREEMENT TO DO THE GIFT CARD PROGRAM UP HERE ON 407 IS NOW IN FLUX BECAUSE WE CAN'T NECESSARILY DO IT IN TIME HERE AS AN EDC, CDC, IF THAT PASSES. IS THAT A FAIR STATEMENT? YES. THAT WE CAN'T OBTAIN ANYTHING. YEAH. SO THAT'S PROBABLY MOST LIKELY TO HAPPEN IS IF THE MDD IS CREATED, IT'S LIKELY GOING TO INCLUDE BOARD MEMBERS FROM THE EDC AND CDC. SO BUT THEY HAVE TO BE UP TO THAT BOARD. THEY HAVEN'T EVEN STATED HOW MANY MEMBERS THEY WANT ON BOARD. AND THEY HAVEN'T STATED WHAT THE NOMINATION PROCESS WOULD BE LIKE. WE HAVEN'T HEARD ANY OF THAT. THAT WILL HAPPEN IMMEDIATELY IF THE IF THE MDD IS CREATED. YEAH, I THINK DREW'S EMAIL, IT TALKS ABOUT THE NOMINATION PROCESS. SO THE EXPIRING TERMS WOULD BE ENDING THIS MAY. THIS ELECTION IS MAY.

AND IF THE MDD IS CREATED. SO THE TIMING WOULD BE B SIMILAR. IS THERE A WAY TO PUT FORTH. I DON'T EVEN KNOW, JUST A SUGGESTION, A LIST OR SOMETHING TO SAY THAT THESE WERE THE THINGS THAT EDC, CDC WAS GOING TO LOOK AT. AND IF WE GET AN MDD, THEN WE WOULD PUT THAT

[00:20:03]

ANYWAYS. WEDNESDAY. THE. FIRST FOR WEDNESDAY THE 29TH. APRIL 30TH, CUTTING A LITTLE CLOSE.

IS APRIL 2ND. ENOUGH TIME FOR STAFF TO GATHER THE NECESSARY INFORMATION AND STUFF? YEAH, I THINK SO. OKAY, THE APRIL 2ND. WHAT TIME WOULD IT BE? BECAUSE I HAVE A MEETING AT 530 FOR A DIFFERENT BOARD FOR HERE FOR THE TOWN. ON APRIL 2ND. YEAH, THAT DREW SENT OUT THIS WEEK.

OH, YEAH. OH THE MEETING. YEAH. ABOUT. I DON'T THINK WE'RE NOT GOING TO DO THE BOARD OF ADJUSTMENT MEETING ON APRIL 1ST. YOU'RE NOT GOING TO KNOW. OKAY. CAN YOU SEE I WANTED TO CONFIRM THAT. YEAH. SO WE COULD DO THAT FIRST IF YOU WANT TO. SO APRIL 1ST A WEDNESDAY. DID THAT WORK? YES. YEAH. WE'LL SEE. WE'LL SEE WHO SHOWS UP. AND YOU SAID YOU HAVE ENOUGH TIME TO GATHER THE INFORMATION NEEDED. YES. SOME OF THE QUESTIONS WERE ASKED. PERFECT. YEAH. AND, AND THE MAIN POINT OF IT WILL BE TO KIND OF DISCUSS WHAT THINGS THE, THE BOARDS WANT TO SEND ON TO THE FUTURE MDD IF THAT'S CREATED. YEAH, YEAH. SAME TIME SIX. A GOOD TIME. YOU GOOD TIME.

[00:25:04]

[2.B. Briefing - Upcoming Meetings & Events]

[2.C. Briefing - Quarterly Financial Report]

AND THE REVENUES ARE AT 10% OF THE ADOPTED BUDGET. YOU'D EXPECT IT TO BE AT 25% FOR THE ONE QUARTER MEETING. BUT THERE'S A LAG. AND WHEN WE COLLECT THOSE SALES TAXES. SO THAT'S ONLY I THINK THAT'S ONLY ONE MONTH OF THE SALES TAXES THAT WAS INPUTTED IN THAT OUR EXPENSES ARE JUST 7% OF THE ADOPTED BUDGET, AND THAT'S DUE PRIMARILY TO DELAYS IN SOME MAJOR EXPENDITURES, LIKE THE ENGINEERING MONUMENT SIGNS, WHICH WE HAVEN'T SPENT ANYTHING ON YET. SOME INCENTIVE PAYOUTS THAT ARE EXPECTED TO HAPPEN BEFORE THE END OF THE FISCAL YEAR AND SOME TRANSFERS OUT THAT OCCUR REGULARLY BUT HAVEN'T HIT THIS QUARTER YET.

WE'RE PROJECTING THAT THE FUND BALANCE FOR EACH BOARD AT THE END OF THE FISCAL YEAR WILL BE JUST UNDER 1.5 MILLION. AND WE'RE ACTUALLY WE'RE ACTUALLY ABOVE THAT NOW. SO IT'LL BE A LITTLE BIT MORE THAN THAT IF THE MDA'S CREATED. ANY QUESTIONS. ITEM D NEW CHAMBER

[2.D. Briefing - New Chamber Member Scholarship Program]

[00:30:04]

WE'VE BEEN AVERAGING ABOUT 20 NEW BUSINESSES THAT COULD GO UP. AND THEN THAT WOULD THAT WOULD GO UP WITH HOW MANY NEW BUSINESSES. SO SOME DETAILS TO KIND OF DISCUSS FURTHER ARE WHAT QUALIFICATIONS FOR THE BUSINESSES YOU WHAT YOU WANT THIS FOR ALL NEW BUSINESSES JUST FOR IN NORTH LAKE JUST FOR BRICK AND MORTAR BUSINESSES THAT HAVE A LOCATION OR ESTABLISH A LOCATION IN NORTH LAKE. OR IS IT CERTAIN TYPES OF BUSINESSES THAT YOU JUST WANT TO INCLUDE, WHETHER YOU WANT TO PLAY THE FULL BASEMENT MEMBERSHIP OR DO YOU WANT TO MAYBE HAVE THEM PAY THAT INITIAL BASE MEMBERSHIP AND COVER THE COST TO UPGRADE FROM FROM BASE. SO THAT WAY THEY'RE USED, AT LEAST USED TO HAVING TO PAY THAT MEMBERSHIP AMOUNT THAT YOU'RE GIVING THE BENEFIT OF THE UPGRADE TO ANOTHER LEVEL, WHICH PROVIDES ADDITIONAL BENEFITS TO THEM. AND THEN SO FOR ANNUAL BUDGETING PURPOSES, AND WE, AND IN THE AGREEMENT, WE NEED TO SET LIKE A NOT TO EXCEED MAXIMUM. OKAY. SO ALL OF A SUDDEN WE GET SOME HUGE AMOUNT OF BUSINESSES MORE THAN WE EXPECTED. SO THOSE ARE JUST SOME OF THE THINGS I WANTED TO THROW OUT THERE FOR DISCUSSION. AND I WILL POINT OUT AFTER WE DRAFTED THIS AGREEMENT, WE HAVE MORE DISCUSSION WITH OUR OUR LAST METRO PORT COMMUNITY MEETING, AND IT SOUNDED LIKE MOST OF THE CITY MEMBERS FELT LIKE IT WOULD BE MORE BENEFICIAL FROM THE SIDE OF THE CITY, THE CHAMBER AND THE NEW BUSINESS TO HELP COVER THAT COST OF AN UPGRADE INSTEAD OF JUST THE BASE MEMBERSHIP. THAT WAY THEY'VE GOT SOME SKIN IN THE GAME AND THEY AT LEAST KNOW THERE'S THEIR MEMBERSHIP DUES TO JOIN THE CHAMBER. BUT WE'RE GIVING THEM ADDITIONAL BENEFITS BY GIVING THEM A WAY TO TO UPGRADE ONE OF THOSE UPGRADES. YOU'LL NOTICE IN YOUR PACKET, THERE'S KIND OF A, THERE'S A FLIER WITH THE MEMBERSHIP LEVELS, STARTING WITH THAT FIRST UPGRADE. ONE OF THE THINGS THAT'S GAINED IS A RIBBON CUTTING EVENT. SO THAT'S SOMETHING THEN THAT ALL NEW BUSINESSES WOULD GET TO PARTICIPATE IN AS, AS AN UPGRADED CHAMBER MEMBERSHIP. AND AT LEAST THAT SIGNATURE LEVEL. DID THIS COME AS A REQUEST FROM THE CHAMBER, OR HAVE WE ACTUALLY HAD BUSINESSES ASK LIKE, IS THEIR ASSISTANCE IF WE JOIN? I THINK SOME BUSINESSES HAVE MENTIONED THAT WHEN THE THE CHAMBER IS APPROACHED HIM ABOUT MEMBERSHIP OR DIFFERENT AMBASSADORS OR PEOPLE IN THE TOWN, I HAVEN'T HEARD THAT SPECIFICALLY. HAVE YOU, LAUREN, AT ALL? DO WE HAVE WE DO WE DO PROMOTE THE CHAMBER WHEN WITH NEW BUSINESSES AND TELL THEM ABOUT IT AND MEMBERSHIP OPPORTUNITIES. BUT AND WE DO HAVE A LOT OF PEOPLE THAT GO AHEAD AND JOIN WITHOUT THIS. SO DO WE HAVE AN IDEA LIKE HOW MANY NORTHLAKE BUSINESSES JOINED, LIKE IN 24? OR WE CAN JUST EVEN SAY 25. DO

[00:35:02]

THAT'S ACTUALLY ONLY $230 VERSUS THE THREE. SO I THINK IF THEY'VE GOT SKIN IN THE GAME, THEN THEY'RE GOING TO SHOW UP AS OPPOSED TO HERE'S A FREEBIE FOR THE BIT LIKE YOU CAN GO BECAUSE AGAIN, THERE'S NO ACCOUNTABILITY. SO THAT'S WHY I LIKE THE THE UPGRADE PART OF THE PIECE. SO THERE'S, AND THEN THERE'S SOME, SOME MEMBERS LIKE. LIKE CERTAIN HOTELS AND APARTMENT COMMUNITIES. AND STUFF THAT WOULD THEIR MINIMUM LEVEL IS THAT SIGNATURE MEMBERSHIP LEVEL. SO THEN WE COULD PAY THE DIFFERENCE BETWEEN THAT AND THE EXECUTIVE MEMBER OR SOMETHING FOR THEM. BUT FOR MOST OTHERS, IT WOULD BE THE DIFFERENCE IN THAT CONNECT MEMBER TO SIGNATURE MEMBER. BUT WHAT IF THEY CHOOSE TO DO A SIGNATURE MEMBER AND THEN WE YOU KNOW, THERE'S THAT DIFFERENCE. THAT'S THE OTHER THING. WE COULD JUST SET A CERTAIN AMOUNT AND LET THEM CHOOSE WHAT MEMBERSHIP LEVEL. AND YOU GET THAT AMOUNT TO APPLY TO WHATEVER UPGRADE YOU CHOOSE. AND HOW MANY OTHER CHAMBER MEMBERS ARE PUTTING SOMETHING LIKE THIS INTO PLACE WITH THE CHAMBER OF COMMERCE? HOW MANY OF THOSE ARE COMMUNITIES? MANY OF THE OTHER COMMUNITIES THERE CHAMBER? NONE HAVE YET. WE'RE ALL DISCUSSING IT RIGHT NOW, BUT EVERYTHING'S LOOKING. YES. THEY'RE ALL WE'RE ALL LOOKING INTO IT. SO EVERYBODY'S COMPARING NOTES ON THIS. YES, YES. I HAVE ONE THOUGHT OF LIKE THAT WOULD KIND OF LIKE MAYBE NEGATE FROM DOING THIS AS IF THEY'VE RECEIVED A PIONEER GRANT OR GETTING FUNDS FROM US. LIKE, I MEAN, DOES THAT SOUND LIKE DOUBLE DIPPING OR NOT BEING I DON'T KNOW, THAT WAS ONE THOUGHT. I'M LIKE, THEY'RE ALREADY GETTING A LUMP SUM. LIKE, DO WE STILL WANT TO DO THIS PORTION OF IT TOO? YEAH. OR PIONEER GRANT IS FOR ONE THING, I WOULD SAY, AND THIS IS FOR SOMETHING ELSE, I'D SEE THEM AS SEPARATE. OKAY. AND THIS IS GOING TO BE A RELATIVELY LOW COST PER BUSINESS AS WELL. SO I SEE THIS MORE AS A WAY OF SUPPORTING ACTUALLY THE CHAMBER BECAUSE IT'S, IT'S, IT'S INCENTIVIZING PEOPLE TO JOIN. AND THEN IF THEY FIND BENEFIT WITH THE MEMBERSHIP IN THE FIRST YEAR, THEY'RE GOING TO CONTINUE TO, TO STAY MEMBERS OF THE CHAMBER. IT DOES HELP THE CHAMBER, BUT THE CHAMBER, I THINK HELPS HELPS OUR BUSINESSES AS WELL. NO, I'M NOT DISAGREEING WITH THAT. I'M JUST I'M JUST THINKING THAT THIS IS A THIS IS A BENEFIT TO THE CHAMBER FOR A LOW ENTRY, I WOULD I WOULD RECOMMEND DOING A FLAT, MAYBE FLAT IN BETWEEN THE FIRST AND THE SECOND LEVEL, BECAUSE PEOPLE MAY CHOOSE TO DO. AND THEN YOU GET YOU GET, YOU GET COMPLICATIONS BECAUSE EVERY LEVEL HAS A DIFFERENT DOLLAR VALUE IN BETWEEN. YES. SO LIKE. YEAH, WE'RE LOOKING AT 230 TO 250 AND THEN YOU JUMP FROM 250 TO 700. AND THEN I THINK THE PRESIDENT'S CIRCLE AND CHAIRMAN'S CIRCLE, WE WOULD MAKE SURE THAT BECAUSE THOSE ARE THE THINGS, THOSE ARE ARE THOSE ADDITIONAL. OR ARE THOSE LEVELS CUMULATIVE? I THINK THEY'RE FLAT, RIGHT? THESE ARE NOT THESE ARE NOT CUMULATIVE. NO. YEAH. OKAY. BUT. ARE YOU SAYING IF YOU LOOK AT $250, THEY CAN APPLY IT TO WHATEVER THE MEMBER MEMBER MEETING ROOM BENEFITS COULD BE THE DIFFERENCE. IF IT'S A DIFFERENCE IN DON'T MAKE ME MAD, BUT THE DIFFERENCE BETWEEN 625 AND 395, IF THAT'S NOT 250, THEN IT'S ANOTHER, YOU KNOW, $5 CREDIT OR A MAX OF 250. SO IT WOULD COVER AND THEN THEY CAN CHOOSE. YEAH, THE MAX OF 250 WOULD COVER EITHER OR. SO NATHAN IS THE THINKING THAT THIS IS A ONE TIME GRANT TO, TO GET BUSINESSES ENGAGED IN THIS.

OR WILL THERE BE AN ONGOING ANNUAL. THIS WOULD BE A ONE TIME GRANT FOR THAT INITIAL YEAR OF MEMBERSHIP. AND THE IDEA IS JUST FOR NEW, NEW BUSINESSES. BUT WE WOULD CONTINUE DOING IT LIKE IN 26 OR 27 FOR ANY NEW BUSINESSES. SO THAT WOULD I MEAN, THAT WOULD

[00:40:06]

YES, YES. I THINK IF IT'S NOT A SALES TAX GENERATING BUSINESS, WE WOULD PROBABLY KNOW, RIGHT? IT'S A GYM OR SOMETHING LIKE THAT. BUT I MEAN WOULD WE DEAL WITH THAT? I. I WOULD BE MORE OPEN TO WELL, THERE'S A LOT OF OUR MORE BUSINESSES, A LOT OF OUR INDUSTRIAL BUSINESSES AND STUFF DON'T REALLY GENERATE SALES TAX EITHER. BUT THEY'RE IMPORTANT BUSINESSES FOR THE COMMUNITY. I MEAN, I THINK THE BRICK AND MORTAR IS IMPORTANT PIECE OF IT, RIGHT? IF THEY HAVE AN OLD BUILDING, THEY JUST POP IN AND POP OUT, OR IF IT'S JUST A HOME BASED BUSINESS OR REAL ESTATE AGENT WORKING ON THEIR HOME, I DON'T, I DON'T KNOW IF YOU WANT TO INCLUDE THEM. YOU MAY, BUT OR DO YOU WANT TO JUST LIMIT TO SOMEBODY WHO HAS A BRICK AND MORTAR LOCATION IN THAT TOWN? I AGREE, BRICK AND MORTAR, I THINK IS AN IMPORTANT FACET. YEAH, BRICK AND MORTAR. WE'RE GOING TO DEFINE THAT KIND OF BLUE STATE. LIKE WHAT IF THEY HAVE A FOOD TRUCK, BRICK AND MORTAR? NO. I THINK WE'RE GOING TO EXCLUDE SOME THAT WE SHOULDN'T BE DOING THAT $150 AND 20 BUSINESSES A YEAR. AND TO ALSO INCENTIVIZE PEOPLE TO JOIN THE THE CHAMBER.

I THINK IT'S A I THINK IT'S A VALUE ADD. I WOULD, I WOULD BE I WOULD BE OPEN TO EXPANDING IT.

IF YOU WANT TO LET YOU GUYS KNOW THERE ARE BUSINESSES THAT OPERATE OUT OF THEIR HOMES THAT ARE PROBABLY GOING TO BE INTERESTED IN THIS AS WELL. SO JUST GIVING YOU A FAIR WARNING.

SO ASKING AS WELL. SO WE NEED TO SET A GUIDE. IT WOULD BE SOMETHING IT WOULD BE HARD FOR, HARD FOR US AS A TOWN AND THE CHAMBER TO ADMINISTERING THIS TO DETERMINE. RIGHT. WHICH OF THOSE IS A NEW BUSINESS. YEAH. I'M THINKING YOU'RE GOING TO HAVE MORE. WE KNOW WHEN AS A BRICK AND MORTAR, YOU GET A CEO AND YOU'RE OPEN FOR BUSINESS, YOU KNOW, AS A NEW BRICK AND MORTAR BUSINESS. BUT YOU COULD ALSO REQUIRE ARTICLES OF INCORPORATION. YOU COULD REQUIRE THEM TO HAVE AN LLC OR C CORP OR AN S CORP. YOU COULD, YOU COULD SAY NO SINGLE PARTY BUSINESSES OR SINGLE MEMBER BUSINESSES. I JUST I THINK I THINK WE'RE $250. I THINK IT'S A GREAT WAY TO GET PEOPLE INVOLVED IN THE COMMUNITY AND INVOLVED WITH THE CHAMBER. I WOULD BE MORE OPEN, BUT. I, I LIKE TO TALK ABOUT IT TODAY. AND THE CHAMBER OFFERS A LOT OF CLASSES THAT HELP WITH HELPING NEW BUSINESS TOO GROW THEIR NETWORKING. THEY OFFER A LOT OF DIFFERENT THINGS. AND YEAH, YEAH, AN ADVANTAGE TO OPENING IT UP TO, TO MORE BUSINESSES AND EVEN HOME BASED BUSINESSES IS THAT MAYBE THEIR INVOLVEMENT IN THE CHAMBER CAN HELP THEM GROW. AND THEN THEY GET A BRICK AND MORTAR LOCATION IN TOWN. ARE WE NOT? WE'RE NOT WORRIED ABOUT THE FLOODGATES OPENING. AND EVERY TIME. WE CAN HAVE A WE CAN HAVE AN OPENING DATE, YOU KNOW, WHATEVER DATE WORKS WITH YOUR SCHEDULE TO BE ABLE TO PROCESS THEM AND MAX IT OUT AT. 2025. I DON'T THINK WE. IT'S NOT FOR EXISTING BUSINESS, ONLY FOR NEW BUSINESSES. RIGHT, RIGHT, RIGHT. BUT SHE'S CONCERNED ABOUT IS THAT EVERYBODY'S GOING TO SAY, WELL, I'VE GOT I JUST FORMED THIS LLC. WELL THAT'S EXACTLY YEAH. THE HOME BUSINESS IS VERY EASY TO, TO DO. I MEAN, IF WE DID 8000 AT 250 OR THAT'S 32 GRANTS FOR SCHOLARSHIPS, THAT'S GREAT.

THAT'S GREAT. YEAH. THAT PUTS A CAP ON IT. YEAH, EXACTLY. YEAH. THAT'S A THAT'S A SOLID NUMBER CONSIDERING WHAT THEY'VE BEEN LOOKING AT AN AVERAGE OF 20. SO THERE'S ROOM FOR GROWTH. I THINK THAT WOULD BE OUR RECOMMENDATION AT THIS POINT WOULD BE THE WHAT YOU SAID THE.

250 YEAH. 250 CAP AND THEN 8000 CAP FOR THE PROGRAM. YEAH. WHAT DOES EVERYBODY THINK ABOUT THE BRICK AND MORTAR VERSUS THE HOME BASED? I'M GLAD YOU'RE OKAY WITH HOME BASED. I MEAN, EVEN IF IT IS IN REAL ESTATE AGENT. I MEAN, THEY'RE DEFINITELY PROVIDING NORTHLAKE IF THIS IS THEIR GROUND, THEIR HOME BASE OR WHATEVER, AND SELLING THEIR HOME. SO IF

[00:45:08]

AND THEN. WHAT IS A NEW BUSINESS? HOW SOON WOULD THEY HOW NEW WOULD IT NEED TO BE? HOW LONG WOULD WE GIVE THEM TO JOIN THE CHAMBER TO QUALIFY AS A NEW BUSINESS? I THINK THE CEO OR INCORPORATE, YOU KNOW, WITHIN THAT SAME YEAR. SO WITHIN 2026 SIX. AND DO THOSE MEMBERSHIPS, DO THEY RUN LIKE YEAR TO DATE, OR IS IT JUST FROM JANUARY 1ST TO DECEMBER 31ST? THAT'S WHEN THEY GO, YEAH, SO THEY JOINED IN JULY. IT RUNS THE NEXT. OKAY. WITH THAT. IT'S NOT DOING ANY OF THAT. JUST. IS THERE SOME SORT OF APPLICATION OR IS THAT TO BE DEVELOPED? WILL THERE BE SOMETHING THEY HAVE TO FILL OUT? SOMEONE WILL REVIEW. YES. THE WAY IT'S WRITTEN CURRENTLY IS THE THE CHAMBER WOULD MANAGE THE PROGRAM, THE CHAMBER, AND THEY WOULD REPORT BACK TO US ON THE THE MEMBERS AND HOW MUCH. AND THEN WE WOULD PAY BASED ON THAT.

WE WOULD VERIFY THEIR ELIGIBILITY AND STUFF AT THAT POINT. SO WE MAY NOT HAVE THE ABILITY TO VERIFY OR TO JUDGE WHAT THE YEAR IS GOING TO BE, BECAUSE THEY'RE NOT GOING TO WANT TO MANAGE A DIFFERENT TYPE OF PROGRAM FOR EVERY MEMBER IN THE TEAM. SO SOME OF THIS MIGHT FLESH ITSELF OUT AS THE OTHER TOWNS ONLINE. YES. THEY'RE NOT GOING TO WANT TO MANAGE EVERY, EVERY DIFFERENT AREA, HAVING A DIFFERENT BACTERIA. HOW MANY CITIES MAKE UP? I DON'T KNOW IF WE'RE GOING TO BE ABLE TO GET ALL SEVEN CITIES TO AGREE ON SEVEN CITIES THAT MAKE UP THE METRO CHAMBER. THEY'RE SIGNING A PERFORMANCE AGREEMENT, SO THEY WILL HAVE TO DO WHATEVER.

YES. SURE. I THINK SO FAR WE'RE THE ONES KIND OF TAKING THE LEAD ON THIS. SO I THINK WE MAY HAVE SOME FOLLOWERS. I THINK WE HAVE WE CAN SET THE STANDARD AND IT IS ONLY FOR NEW MEMBERS.

IF THEY'VE GOT ANY TYPE OF MEMBERSHIP, THEY'RE NOT ELIGIBLE. THEY HAVE TO BE A MEMBER. YOU WANT TO CONSIDER BUSINESSES THAT HAVE BEEN MEMBERS BEFORE. SO IF WE GET INTO THAT AND THEN WE GET INTO ALSO WHAT IF THEY JUST SIGNED UP, RIGHT. BUT THEN ARE THEY A NEW BUSINESS BECAUSE A NEW BUSINESS, IF THEY WERE MEMBERS AND THEN DROPPED AND THEN COME BACK IN, IF IT'S THE SAME BUSINESS, THAT'S NOT A NEW BUSINESS, THAT'S JUST A NEW MEMBER, RIGHT? IT'S JUST BUSINESSES THAT THEY'RE GOING TO ASK FOR THAT AS WELL. SO AS BOARD MEMBERS, I JUST FIGURED YOU ALL WOULD WANT TO KNOW WHAT SAYING IS. IF THERE'S ANY PUSHBACK THAT SHOULD WORK. WELL, THE WHOLE POINT IS FOR THE CHAMBER TO GAIN NEW MEMBERS, NOT RETAIN EXISTING OR PAST. YES. SO MUCH SO. YEAH. AND I THINK THIS IS A GOOD START. BUT IF THIS GOES WELL, MAYBE SOMETHING YOU MIGHT WANT TO LOOK AT IN THE FUTURE TOO. IF THERE'S AN EXISTING BUSINESS THAT'S NOT A MEMBER AND THEY'VE MAYBE THEY WERE AT ONE TIME OR LAPSED OR SOMETHING, MAYBE GET A SCHOLARSHIP FOR PEOPLE TO JOIN FOR ONE YEAR TO START UP AGAIN, A ONE TIME ONE NOT IT ONLY GETS ONCE. YEAH, YEAH. BUT I, I WOULDN'T RECOMMEND THAT CURRENTLY. I THINK STARTING OUT WITH JUST A NEW BUSINESS IS PROBABLY THE WAY TO GO. SEE HOW THIS GOES. WE ONLY GO BACK TO JANUARY AT THE BEGINNING OF THIS YEAR OR FOR SINCE YOU'RE

[00:50:05]

YEAH. I THINK THERE'LL BE SOME TIMELINE CONSIDERATIONS TO TAKE INTO ACCOUNT WHEN THIS GOES INTO PLAY IN PLACE. YOU KNOW, THE CHAMBER SAYS, HEY, WE'RE GOING TO HAVE A FEBRUARY 15TH DATE THAT WE'RE GOING TO HAVE ALL THE BRANDING. SO THERE MIGHT BE SOME OF THAT THAT HAS TO BE INCLUDED IN THE FIRST YEAR OF THEIR. BUSINESSES JUST JOINING THE GRANTS. I CAN SEE I CAN SEE IT TAKING A YEAR TO KIND OF. BUT I THINK IF WE SET OUR INTENTIONS AT 32 GRANTS AND THAT'S OUR BUDGET. THE BUDGET IS UNDER THAT. AND THE FACT THAT. YEAH. OR YEAH. OR WE CAN HAVE IT IN THERE WHEN WE START THIS PROGRAM, THE CHAMBER COULD GO BACK AND LOOK AT NEW MEMBERS IN NORTH LAKE IN THAT LAST YEAR AND SEE GO BACK TO THEM. DO YOU WANT TO UPGRADE? AND WE COULD WE COULD COVER THAT. IF IF YOU WANT TO DO THAT. BECAUSE IT WOULD BE KIND OF ROUGH IF YOU HAD A MEMBER. I MEAN, JUST IN THE LAST FEW WEEKS OR MONTHS JOINED IT DIDN'T HAVE THAT OPPORTUNITY. SO SOMEBODY THAT'S RIGHT NOW WANTING TO JOIN KNOWS THAT THIS IS COMING, BUT WANTS TO GO AHEAD AND JOIN IN, BE A MEMBER. BECAUSE YOU'RE NOT RENOVATING THEM, YOU'RE JUST GIVING THEM THE SCHOLARSHIP TO. UPGRADE THEIR MEMBERSHIP. YEAH, WE DON'T. BUT YOU MIGHT GET. SO YEAH, I THINK THAT GIVES ME WHAT, WHAT WE NEED TO, TO GET DISTRACTED UP. YEAH. DO YOU HAVE WHAT YOU NEED FROM US? YEAH. AND THEN WE'LL, WE'LL PROBABLY DISCUSS THIS AGAIN WITH THE OTHER COMMUNITIES AND, AND TRY TO KIND OF VET OUT A STANDARD, BUT, AND THEN WE'LL BRING THIS BACK FOR ACTION TO WHATEVER BOARD EXISTS. SO NO MOTION RIGHT NOW. NO, NO, THIS IS. SO GOOD. SO ON THIS ITEM AND GOING BACK TO, TO THE MDG THING, STAFF, WE'RE MOVING FORWARD AS IF IF THE MDD IS CREATED, IT'S BASICALLY GOING TO REPLACE THE EDC AND CDC AND FUNCTION VERY SIMILARLY. SO WE'RE NOT REALLY CHANGING ANY OF OUR PLANS OR DIRECTIONS. SO WHEN WE'RE TALKING ABOUT INITIATING THINGS LIKE THIS, I'M THINKING THIS WILL GO STRAIGHT INTO THE MDD. POLYNESIA FUNDING. WELL, THAT'LL BE FUNDED BY A SALES TAX. I'LL HAVE SOME FUNDING, BUT MAYBE NOT IMMEDIATELY. IT'S A LATE. ANYTHING ELSE ON THIS ITEM? ANY OTHER THOUGHTS? OKAY, NEXT ITEM IS PUBLIC INPUT. SO IS THERE ANYONE WHO WANTS TO

[3. PUBLIC INPUT]

[00:55:01]

SO WE HOPE EVERYBODY WILL PARTICIPATE AND HELP OUT. SO YOU'LL EMAIL THE BOARD MEMBERS AS WELL WITH ALL THAT INFORMATION? YEAH, I'M GOING TO. YES. PERFECT. YEAH. OUR ASSOCIATION ALSO FUNDS THE SNACK PACK PROGRAM THAT THE THAT CHIEF CRAWFORD PUT IN PLACE. SO THAT'S ANOTHER WHERE THE FUNDS WOULD GO AS WELL. YEAH. IF YOU KNOW ANYBODY THAT WANTS TO PLAY, YOU KNOW, IF YOU CAN PROVIDE THEM WITH THE INFORMATION, LET THEM KNOW THAT WE'RE GOING TO HOLD THIS TOURNAMENT TO SUPPORT THE NORTH LAKE POLICE DEPARTMENT. WE'RE GOING TO START HITTING UP A LOT OF THE BUSINESSES HERE IN NORTH LAKE. WE'VE ALREADY STARTED, SO HOPEFULLY WE HAVE TO HAVE A MINIMUM OF 72 PLAYERS. SO IF YOU KNOW ANYBODY WHO WANTS TO PLAY OR YOU WANT TO PLAY, SIGN UP, IT'S $150 A PLAYER, $560 FOR A FOURSOME. SO YOU GET KIND OF A BREAK IF YOU SIGN UP A FOURSOME. ARE THERE SPONSORSHIPS AS WELL? YEAH, THAT'S RIGHT. YEAH. HOWARD ACTUALLY WAS SUCCESSFUL IN GETTING HILLTOP TO BE OUR TOP SPONSOR FOR IT. NICE. AND HE'S WEARING ONE OF OUR SHIRTS. YEAH. THAT'S IT. THANK YOU. DOES ANYONE ELSE HAVE A COMMENT DURING PUBLIC INPUT? OKAY, WE'LL MOVE ON TO ITEM FOUR

[4.A. Consider approval of minutes for January 15, 2026]

[4.A. VOTE]

[4.B. Consider approval of Pioneer Grant and performance agreement for Function Coffee Co. (Part 1 of 2)]

FUNDING IS GENERALLY BASED ON ESTIMATED TAXABLE SALES, WITH A PAYBACK EXPECTED IN APPROXIMATELY FIVE YEARS AND SALES TAX THAT WOULD GO DIRECTLY TO THE EDC AND CDC.

THE UPDATE ALSO PROVIDED FOR SOME OPTIONS ON HOW TO AWARD THAT, AND COULD BE IN THE FORM OF A UPFRONT GRANT FORGIVABLE LOAN WITH A FIVE YEAR TERM OR A COMBINATION WHERE THERE'S AN UPFRONT AMOUNT AND THEN A REBATE OVER THE NEXT FEW YEARS OF ACTUAL SALES TAX RECEIPT. SO THEN FUNDING HAS BEEN SPLIT EVENLY BETWEEN THE EDC AND CDC, AND THE RECIPIENT IS RESPONSIBLE FOR ANY FEDERAL TAX LIABILITY. SO THE PROJECT FOR CONSIDERATION TONIGHT IS A BUSINESS FUNCTION COFFEE COMPANY. THEY ARE BUILDING A COFFEE SHOP HERE IN NORTH LAKE

[01:00:07]

THEY EXPECT TO EMPLOY 6 TO 9 FULL TIME EMPLOYEES AND OPENING WITH AN ESTIMATED ANNUAL SALES TAX OF $600,000 AT LEAST STARTING OUT, THAT WOULD GENERATE ROUGHLY $4,500 TO THE CDC AND CDC. THE REQUESTED GRANT AMOUNT IS 35,000, SO THAT WOULD BE 17,500 FROM EACH CORPORATION, AND THAT WOULD BE AN ESTIMATED PAYBACK TO THE CDC AND CDC OF ABOUT 7.8 YEARS. AND AS A REMINDER, THE INCENTIVE AMOUNT IN TERMS OF THE AGREEMENT, THOSE TYPE OF THINGS ARE NEGOTIABLE AND CAN BE DISCUSSED IN EXECUTIVE SESSION. AND WE'VE GOT A SPECIFIC ITEM UNDER EXECUTIVE SESSION THAT WE CAN WE CAN ENTER IF YOU WOULD LIKE TO. BUT BEFORE WE GET TO THAT POINT, I WANT TO TURN IT OVER TO REPRESENTATIVES FROM FUNCTIONING COFFEE COMPANY. HI.

THANK YOU. IN A WAY, PAST LIFE WE WERE PROFESSIONAL PERFORMERS, SO THIS KIND OF FEELS LIKE AN AUDITION. I'LL BE TAP DANCING. SO A LITTLE UPDATE THROUGH THE GROWTH THAT WE'VE HAD. WE'VE HAD TO LEARN TO BE VERY AGILE. AND ONE OF THE THINGS THAT IS, HAS EVOLVED FROM WHAT YOU SAW IN THE PREVIOUS SCREEN TO NOW IS THAT WE'RE ACTUALLY HAVE STARTED TWO BUSINESSES HERE IN NORTH LAKE, ONE BEING THE CAFE AND ONE BEING OUR ROASTING OPERATION. SO WITHOUT FURTHER ADO, WE'LL GET TO THE GOODS. FIRST OF ALL, THANKS FOR HAVING US. I SEE SOME FAMILIAR FACES AT POP UPS, SO THAT'S EXCITING TO SEE. AND IN FRONT OF YOU IS OUR FOUNDERS PIN AND THE WE DON'T HAVE COFFEE TO GIVE YOU TODAY. THAT'LL BE TOO MUCH OF A BRIBE. SO THE FOUNDERS PIN AND IT IS 7:00. YEAH, WE WANT THE COMMUNITY. WE WANT ALL MEMBERS HERE TO FEEL LIKE THEY TRULY ARE FOUNDERS OF THIS COMPANY, THAT WE ARE STARTING HERE IN THE HEART OF NORTH LAKE. SO WITHOUT FURTHER ADO, CAN YOU JUST CLICK OH, JUST CLICK AN ARROW. SO I'M DEVIN, TONY'S WIFE. WE'VE KNOWN EACH OTHER SINCE SIXTH GRADE. WE GREW UP IN THE SOUTH LAKE GRAPEVINE AREA BACK IN THE 90S, WHEN 1709 WAS A TWO LANE ROAD, MUCH LIKE 407. I GREW UP OFF OF NORTH CARROLL, WHERE WHEN TOWN SQUARE WAS JUST OPEN FIELD AND GRAPEVINE MILLS WASN'T THERE WHEN TONY WAS THERE IN GRAPEVINE. SO WE GREW UP AS KIDDOS IN A COMMUNITY THAT WAS GROWING AND THRIVING, AND OUR PARENTS SAW THE POTENTIAL THERE, AND WE ENJOYED THAT PROCESS OF BEING A PART OF SEEING THE BUILDINGS GO UP, BEING A PART OF NEW SCHOOLS AND MOVING HERE AND THERE. AND TONY AND I SAW THE POTENTIAL IN NORTH LAKE, WHICH IS WHY WE CHOSE TO MOVE OUR FAMILY HERE AS BUSINESS OWNERS AND AS PARENTS OF OUR WONDERFUL KIDDOS, SULLY AND DEMI. THEY ARE TURNING NINE AND TEN IN IN APRIL AND MAY, AND THEY HAVE LITTLE ENTREPRENEURIAL SPIRITS. AND WE'RE SO EXCITED TO BE BUILDING THIS BUSINESS WITH THEM HERE IN NORTH LAKE. WE LOVE NORTH LAKE SO MUCH THAT MY PRIMARY JOB IS I AM A REAL ESTATE BROKER AND I HAVE MOVED SINCE WE'VE LIVED HERE. IN LESS THAN TWO YEARS. I'VE MOVED OVER 12 FAMILIES TO NORTH LAKE, SOME FROM GRAPEVINE AND COLLEYVILLE AND TEN OF THEM FROM OUT OF STATE. UPSTATE NEW YORK, PENNSYLVANIA, CALIFORNIA, SEATTLE. AND I KEEP DRAWING ATTENTION TO THE CITY OF NORTH LAKE BECAUSE I LOVE LIVING HERE. AND WE ARE SO EXCITED TO CONTINUE GROWING OUR BUSINESS.

TONI'S BACKGROUND IS IN PRODUCT DESIGN, BRAND DEVELOPMENT, AND HOSPITALITY. AND SO TOGETHER WE'RE JUST PULLING IT ALL TOGETHER WITH COFFEE. SO LET'S GO BACK IN TIME. I DON'T HAVE THE EXACT NUMBERS, BUT SOMEWHERE BETWEEN 100 AND 115 YEARS AGO IN COLLEGE, I WAS A BARISTA IN NEW YORK CITY, WHERE WE WERE, WHERE I WAS ATTENDING COLLEGE, AND THAT'S WHERE I FELL IN LOVE WITH SERVICE. THAT'S WHERE I FELL IN LOVE WITH COFFEE. AND THE DREAM WAS IGNITED TO START A COFFEE SHOP. THE DREAM WAS NOT NEW YORK ANYMORE. THE DREAM WAS BRINGING IT BACK HOME TO TEXAS. SO THAT LED ME TO CREATING DIFFERENT EXPERIENCES FOR RESTAURANTS, MAINLY DIGITAL. SO I WAS CHEF TIM LOVE OUT OF FORT WORTH, HIS CREATIVE DIRECTOR. AND THEN I WENT ON TO CREATE CHICK FIL A'S FIRST MOBILE APP THROUGH A COMPANY IN ADDISON AND THEN

[01:05:06]

AND THAT'S, YOU KNOW, THAT'S SUPPORTING OTHER BUSINESSES AND OTHER COFFEE SHOPS ROASTING THOSE BEANS. BUT OUR BEANS ARE GOING TO CONTINUE TO GROW NATIONWIDE. AND WE WOULD LOVE TO KEEP NORTHLAKE, TEXAS AT THE TOP OF THAT ROASTING BAG AND BRING THAT BRING THAT BUSINESS

[01:10:06]

FARMERS BROTHERS WAS HERE IN SOUTH NORTH LAKE. THEY'RE NOW IN FORT WORTH. AND NOW TREEHOUSE DOES ROAST OUT OF NORTH LAKE, BUT THEY ARE HEADQUARTERED IN CHICAGO. WE LIVE HERE. WE PLAY HERE, WE WORK HERE. THIS IS HOME. WE WANT IT TO BE OUR HEADQUARTERS AND OUR FLAGSHIP CAFE. AS WE CONTINUE TO GROW AND AND GET MULTIPLE CAFES ACROSS DFW, WE WILL STILL HAVE THE ROASTING FACILITY HERE THAT SUPPLIES THE BEANS ACROSS DFW AS WELL AS NATIONWIDE. SO WE'RE ALSO GOING TO SUPPORT LOCAL ARTISANS, SCHOOLS, FAMILIES. WE DO SCHOOL DROP OFF EVERY FRIDAY AND, YOU KNOW, BOLSTER NORTH LAKES IDENTITY AS A TRUE DESTINATION SPOT IN IN DFW. ANYTHING ELSE TO ADD? I THINK ONE MORE ON THAT NOTE TOO. WE DO HAVE A PLAN TO HAVE BETWEEN 3 AND 5 CAFES IN THE NEXT 7 TO 10 YEARS. SO JUST TO REITERATE WHAT TONY IS SAYING, IF WE WERE TO HAVE OUR LOCATION, OUR OTHER LOCATIONS WOULD NOT BE IN NORTH LAKE. SO IF WE WERE LOOKING AT PONDER, IF WE'RE LOOKING AT HASLETT, THE ROASTED BAGS THAT ARE SOLD AS RETAIL IN ALL OF OUR CAFES WOULD SAY NORTHEASTERN NORTH LAKE, TEXAS, AND CURRENTLY WE'RE WE'RE AT A PLACE WHERE WE NEED TO REORDER OUR BAGS AND OUR. WE JUST MOVED.

WE'RE MOVING PRETTY QUICKLY AND GROWING PRETTY RAPIDLY. SO WE HAD TO MOVE EVERYTHING OVER TO JUSTIN. BUT LIKE WE SAID, LIKE ONCE WE SAW THAT, THAT OPPORTUNITY IN THE NORTH LAKE BUSINESS PARK, IF WE'RE ABLE TO BRING IT ALL HOME HERE AND GROW IT ALL AT THE SAME TIME, THAT WOULD JUST BE THAT WOULD BE AWESOME. AS YOU CAN IMAGINE, WE'RE STRETCHED, WE'RE POURING EVERYTHING INTO THE CAFE AND WE JUST BELIEVE. WE JUST BELIEVE THAT IT'S, IT'S WORKING. AND, AND THE COMMUNITY HAS SHOWN UP FOR US SO MUCH IN THAT WAY THAT WITH THE CITY'S SUPPORT TO HELP US EXPAND THIS KIND OF TWO PART BUSINESS ALL UP, YOU KNOW, UP FRONT IN THIS BEGINNING TIME, WE HOPE THAT YOU'LL GO ALONG ON THE JOURNEY WITH US. THANK YOU. WE WILL BE HAPPILY ANSWERING QUESTIONS. WHAT ARE YOUR BUSINESS HOURS? SO FOR THE CAFE, IT IS RIGHT NOW 630 TO 4 MONDAY THROUGH SATURDAY. SUNDAY, WE'RE RESERVING FOR THINGS LIKE BRIDAL PARTIES OR OTHER EVENTS THAT WE CAN HOST THERE. BUT THAT BEING SAID, WE WANT THE COMMUNITY TO ALSO INFORM THE HOURS. SO IF WE OPEN AND WE HAVE OUR LAUNCH HOURS OF 630 TO 4 AND EVERYONE'S LIKE, MAN, I WISH YOU WERE OPEN TILL SEVEN, MAN, I WISH YOU OPENED AT FIVE. WE GET ENOUGH PEOPLE SAYING THAT WE'RE GOING TO DO IT. WE HAVE ■BEEN VERY RESPONSIVE AND VERY WHO SAID IT? I FORGET WHO

[01:15:07]

THEY LIVE IN PECAN SQUARE AND THE. THEIR COMMERCIAL KITCHEN IS RIGHT BEHIND HILLTOP. RIGHT.

AND THEIR GHOST KITCHEN THERE. AND ORIGINALLY WE PLANNED TO HAVE OUR ROASTER ON LOCATION, BUT BECAUSE OF THE GROWTH THAT WE'VE HAD IN ROASTING, WE'VE HAD TO THEN PIVOT AGAIN AND THEN MOVE IT INTO THE JUSTIN LOCATION. THERE'S A THERE'S A BACK ROOM IN THIS SPACE OF THE COFFEE SHOP, AND WE WERE GOING TO MAKE THAT THE ROASTERY, BUT NOW WE'RE LEAVING IT AS KITCHEN SPACE BECAUSE WE'RE REALIZING THAT OUR COMMUNITY HAS TOLD US THEY WANT MORE OF A FOOD PROGRAM. SO WE'RE LAUNCHING WITH MORE BAKED ITEMS, AND THEN WE'RE GOING TO GROW OUR FOOD PROGRAM AS WE MOVE FORWARD, BECAUSE WE'LL HAVE THIS SPACE NOW AND THEIR. WHEN ARE YOU PROJECTED TO OPEN? WE'RE REALLY HOPING FOR THE FIRST WEEK OF MAY. OUR GC SAID APRIL 15TH. HE SHOULD BE DONE. THEN WE NEED TO COME IN AND DO FINISHING TOUCHES, GET THE HEALTH PERMITS AND THEN TRAIN UP SOFT LAUNCH AND THEN HARD LAUNCH IN MAY. WE'VE HAD OVER 40. WE OPENED UP OUR APPLICATIONS FOR EMPLOYMENT ABOUT TWO WEEKS AGO, AND WE'VE HAD OVER 40 APPLICATIONS. WE'RE INTERVIEWING ABOUT HALF OF THEM AND HOPEFULLY PICKING THE CREAM OF THE CROP TO BUILD A REALLY GREAT TEAM THAT'S WELCOMING AND FRIENDLY AND WANTS TO LEARN ABOUT COFFEE. WE CAN TEACH ANYBODY ABOUT COFFEE. WAS THAT PICTURE OF THE SHOP? WAS THAT ACTUAL RENDERING OF WHAT IT'S GOING TO LOOK LIKE? THAT WAS THAT WAS A. LET ME. SPEAKING OF CHATGPT. SO THAT IS THE VISION FOR THE ROASTERY. OH, SO THE ROASTERY AND KIND OF LIKE WHAT YOU WERE MENTIONING EARLIER IS CREATING A SPACE WHERE WE CAN HOLD EVENTS, WE CAN DO CLASSES, YOU KNOW, DATE DAY OR DATE NIGHT, LEARNING ABOUT COFFEE AND ALL OF THE DIFFERENT THINGS THAT GO INTO IT. SO IT'S SORT OF A DUAL FUNCTION ROASTERY. BUT IF YOU DO DRIVE BY THE CAFE, THEY JUST PUT UP ALL THE TILE TODAY. SO WE'VE GOT THE IT'S, IT'S ALL COMING TOGETHER. BUT THAT'S NOT THE WAY IT IS RIGHT NOW. AND JUSTIN NO NO NO NO NO JUSTIN IS JUSTIN WAS LIKE AN E-BRAKE. IT WAS I GOT TO GET THIS OUT OF MY OFFICE. IT WAS LITERALLY I MEAN, THIS IS THE BEDROOM OF BOXES. AND IT WAS LIKE, YOU KNOW, WE GOT ENOUGH WITH THE TWO KIDS AND THEIR STUFF. LIKE WE HAD TO MOVE AND MOVE QUICK AND IT WAS AVAILABLE. STORAGE. INTERESTING. YEAH. STORAGE. INTERESTING. WELCOME TO SHARK TANK. SHARK TANK, LET'S GO. YOU'RE NOT KEVIN. ARE YOU READY? QUESTION. I NOTICED ON YOUR OWNERSHIP YOU'VE GOT A SEVEN YEAR LEASE TERM. YES, SIR. IS THAT A FIXED LEASE? COULD THEY RAISE THE RENT ON YOU SO THEY RAISE IT 2% EACH YEAR A GIVEN. YES. OKAY. AND THERE'S A CAP FOR THAT IN THE TRIPLE NET AS A CAP AT 7.5 EACH YEAR. ALL RIGHT. REPEAT THAT. SO THE THE BASE RENT HAS A 2% INCREASE EACH YEAR YEAR OVER YEAR. AND THEN TRIPLE NET, WHICH IS THE TAXES AND COMMON AREA MAINTENANCE, THINGS LIKE THAT. THAT CAP IS 7.5% INCREASE EACH YEAR FOR HIM. MORE THAN 7.5%. YEAH. FOR THAT TRIPLE NET PORTION. YEAH. ALL RIGHT.

ANYTHING GIVING YOU PAUSE WE CAN BE HAPPY TO ANSWER ANY ANY QUESTIONS. WELL YOU SAID YOUR

[01:20:02]

SO I HAVE A QUESTION FOR NATHAN. SO HOW HOW WAS 7.8 YEARS? HOW DID YOU COME UP WITH THAT AS FAR AS THE PAYBACK PERIOD, THAT'S BASED ON THE ESTIMATED ANNUAL SALES TAX GENERATION STARTING AT 600,000. OKAY. I BELIEVE OUR RENEWAL DISCUSSION HAPPENS AT YEAR FIVE. AND THEN THERE'S FIVE YEAR. THERE'S FIVE YEAR CHUNKS THAT YOU CAN SIGN UP FOR AFTER THAT FOR LEASE.

BUT IT'S OUR FLAGSHIP STORE AND WE'RE HERE. SO WE, WE'VE ALREADY, WE'VE ALREADY, WE ALREADY HAVE A PLAN TO BUMP OUT A WALL WHEN OUR NEIGHBOR LEAVES. NEVER CAME THIS READY TO RETIRE.

WE'RE GOING TO TAKE OVER HER SPACE TO. WE'D LOVE TO HAVE A LITTLE SPEAKEASY. YOU SAID YOU HAD SEVERAL POP UP EVENTS. WERE THEY LOCAL OR WERE THEY SPORADIC ALL OVER. WE STARTED.

OUR VERY FIRST POP UP EVENT WAS AT THE MARCH OR THE SPRING MARKET IN PECAN SQUARE. THAT WAS JUST BEANS. AND THEN WE REALLY GOT A NAME FOR OURSELVES AT HILLTOP'S SUNDAY MARKETS AND IT EXPLODED. WE'VE DONE HAYZLETT. WE DO MAINLY IN THIS AREA, ALTHOUGH WE DID WANT THE ALLIANCE AIRPORT. NO. TWICE THE ALLIANCE AIRPORT HANGAR, WHICH WAS A REQUEST OF ONE OF OUR COFFEE. ONE OF OUR LOCALS WORKED THERE AND WANTED THE COFFEE CART AT THE AIRPORT.

WE'VE DONE A COUPLE CHURCHES AS WELL. YEAH. OH YEAH, THE CHURCH. AND THEN THIS PAST WEEKEND WE HAD THE PECAN SQUARE MARKET. THE MARKET WAS FROM 9 TO 1:00. WE HAD A LINE STARTED AT 845, AND WE SOLD 214 DRINKS IN 2.5 HOURS. AND WE SOLD OUT VENDORS AT CHRISTMAS AT THE COMMONS.

THAT'S RIGHT. VENDORS. WE BRAVED THE SLEET. YEAH. AND EVEN THOUGH TOM'S COFFEE WAS THERE, THEY STILL CAME TO THE CART. YOU KNOW, THEY WANTED TO SUPPORT LOCAL. THIS COMMUNITY HAS BEEN EXTRAORDINARY. I'M GOING TO SAY TOO MUCH, BUT AFTER EVERY POP UP AND I GET BACK IN THE CAR, WE LOAD IT UP, I CRY, I HAVE TO, I REALLY DO. IT'S OVERWHELMING HOW SUPPORTIVE EVERYONE IS AND HOW IT IS A REALIZATION THAT WE NEVER THOUGHT WOULD HAVE THE TRAJECTORY AND MOMENTUM THAT IT HAS HAD. BUT HERE WE ARE. WE THOUGHT WE'D BE ROASTING SLOWLY.

AT LEAST I DID. I WAS LIKE, KEEP HIM HAPPY ROASTING FOR A COUPLE YEARS BEFORE WE GET INTO THE CART. AND THEN WE AGREED TO THE CART. I AGREED TO THE CART AND I SAID, OKAY, THIS WILL HAPPEN AT BAY FOR A FEW YEARS. AND HERE WE ARE A MONTH LATER, POURING EVERYTHING WE HAVE INTO NORTHLAKE. SO TO PUT YOU ON THE SPOT, I MEAN, AS FAR AS A MARKETING OPPORTUNITY, YOU HEARD WE HAVE THE GOLF TOURNAMENT. THAT'S RIGHT. OPPORTUNITIES. WELL, I WAS SITTING THERE THINKING I WAS LIKE, WELL, I WAS DOING THE MATH OF OCTOBER 5TH. BY THEN WE MIGHT BE ABLE YOU MIGHT BE ABLE TO SNEAK AWAY AND DO THE POP UPS, DO THE POP UP THERE. YEAH.

WELL, WE ACTUALLY YOU'D HAVE AN OPPORTUNITY TO BE ABLE TO PUT LIKE A LITTLE KIOSK OR TABLE AT A HOLE WITH, YOU KNOW, CANOPY AND YEAH, SO WE'LL HAVE, WE'LL HAVE STAFF IN PLACE THAT WHERE I CAN GO GET THE CART BACK UP AGAIN AND DO THE CANS. IF YOU GUYS HAVEN'T SEEN THE, THE CAN ON DEMAND THAT WE DO, WE SERVE. LET'S SEE. DO I HAVE A PICTURE? OH, SO THIS DEVICE RIGHT HERE IS WE SERVE ALL OF OUR ICED BEVERAGES IN CLEAR TALL BOY CANS. AND THEN WE SEAL IT LIVE IN FRONT OF THE GUEST AND IT'S SORT OF TAKEN OFF. I GOT IT FROM A CHOCOLATIER, ACTUALLY FROM SEATTLE. HE WAS DOING CHOCOLATE MILK IN IT. BUT THAT'S HOW WE SERVE OUR ICE BEVERAGES. AND WE WERE THE FIRST IN DFW TO DO THIS. AND NOW IT'S KIND OF ALL OVER INSTAGRAM AND EVERYTHING. BUT IT'S A REALLY COOL THING. IT SPINS IT UP AND IT'S LIKE A LIKE A DIET COKE OR A BEER. I WAS GOING TO ASK ABOUT THAT AND THAT'LL BE BECAUSE I'VE NEVER SEEN IT. YEAH, THAT'S HOW WE'RE GOING TO THAT'LL BE AT THE CAFE AND PEOPLE WILL COME UP AND THEY'LL BE LIKE, HEY, GIVE ME ONE WITH ICE AND GIVE ME SIX. NO ICE SO I CAN HAVE IT. THIS WEEK WE HAVE A GUY WHO LIVES A COUPLE TOWNS OVER, AND HE COMES TO EVERY POP UP AND HE GETS A PACK OF SIX, SO HE GETS FIVE. NO ICE TO PUT IN HIS FRIDGE AND ONE ON ICE. AND THAT'S THE BEAUTY OF HAVING LIKE THE CAN TOP. I MEAN, YOU SEE THE CLEAR SO YOU CAN SEE ALL THE COLORS AND ALL THE THINGS. BUT I HAVE A QUESTION. SO HOW DID YOU ARRIVE AT THE REQUESTED GRANT

[01:25:04]

IT'S ALL BEEN MOVING PRETTY QUICKLY WITH THE WITH THE SEPARATION OF THE TWO LLCS. AND IT'S BEEN VERY IT'S BEEN VERY FAST. IT'S BEEN VERY FAST. SO IS THE LLC FOR ROASTING? IS THAT IS IT FUNCTION COFFEE ROASTING? OKAY. AND THEN THE CAFE FUNCTION NORTH LAKE LLC.

OKAY. AND THEN WITH THAT INFORMATION, HOW CLOSE ARE YOU TO MOVING INTO THAT NEW BUSINESS CENTER IN THAT JUST OPENED INTO THE TEXAS BUSINESS PARKS? SO THAT'S KIND OF CONTINGENT ON THE PIONEER GRANT. AND OKAY, THIS IS ALL GOOD WHERE WE ARE BECAUSE THAT'S WHAT, YOU KNOW, OBVIOUSLY, THERE WOULD BE SOME KIND OF CONTINGENT, LIKE IT'S FOR THE TOWN OF NORTH LAKE. AND I KNOW YOU GUYS LIVE AND BREATHE AND SLEEP NORTH LAKE, I TRUST ME, I, I'M WARY. I WE'RE ALL GOOD THERE. I JUST WANTED TO MAKE SURE THAT WE ALL UNDERSTAND.

YEAH, SURE. THAT IT WILL STAY IN JUSTIN OR BECAUSE THE SPACE THAT WE HAVE IS SUPER CHEAP. IT WAS AT OUR DISPOSAL. SO WE TOOK ADVANTAGE OF IT. BUT I DON'T WANT IT ADJUSTED. HOW LONG DOES AT LEAST IT'S NOT A LEASE. OKAY. IT WAS ANOTHER BUSINESS THAT WE MOVED. ANY OTHER QUESTIONS ABOUT ANYTHING ELSE? THANK YOU. WE APPRECIATE IT. THANK YOU SO MUCH. WE CAN'T WAIT TO SEE YOU AT THE CAFE. AND IF YOU WINK, I'LL GET YOU A FREE DRIP COFFEE. THANKS. YOU CAN ENJOY THE REST

[5. EXECUTIVE SESSION]

[6. RECONVENE INTO OPEN SESSION]

[4.B. Consider approval of Pioneer Grant and performance agreement for Function Coffee Co. (Part 2 of 2)]

[01:30:14]

WE HAVE THE GRANT FOR THE CORRECT BUSINESS NAME AND THE CORRECT TAX NUMBERS. YES. OKAY.

GREAT. SO DO YOU NEED A MOTION TO POSTPONE? YES, YES. ALL RIGHT. FOR EDC, I WILL MAKE A

[4.B. VOTE]

TO POSTPONE THE. I WOULD LIKE TO MAKE A MOTION TO POSTPONE THE PUBLIC HEARING AND CONSIDERATION OF APPROVAL FOR THE PIONEER GRANT FOR THE COFFEE COMPANY UNTIL APRIL 1ST.

BOARD MEETING. SECOND MOTION COFFEE COMPANY. CORRECT? YES. AND ALL IN FAVOR, I'LL POST.

JAMES. OLSEN'S. WHEN DID THAT POP UP? WHERE THAT ONE IS GOING TO BE DOWN IN ALLIANCE WESTPORT BRANCH. BEST FRIENDS HOSTING AN EVENT, AND ACTUALLY THE FORT WORTH REPORT COME OUT TO THE EVENT. THEY THEY INTERVIEW WITH HIM ON WEDNESDAY AND HE WANTED TO COME TAKE PICTURES OF THE FIRST TIME. THANK YOU. IF THERE'S ANYTHING ELSE, WE. EDC WILL ADJOURN AT 746, I CAN SEND.

SO WHAT DO YOU THINK CDC WILL.

* This transcript was compiled from uncorrected Closed Captioning.