[1. CALL TO ORDER]
          [00:00:07]
          IT IS 6:00, SO WE WILL CALL THE SPECIAL MEETING TO ORDER. WE HAVE A QUORUM PRESENT HERE FOR EDC. IT'S 601 CDC. WE'LL CALL TO ORDER. WE DO HAVE A QUORUM PRESENT. ALL RIGHT, WE'LL MOVE 
          [2.A. Briefing - Proposed Municipal Development District (MDD) Creation & Development Corporations  Dissolution]
ON. ITEM NUMBER TWO A IS A BRIEFING ON PROPOSED MUNICIPAL DEVELOPMENT, DISTRICT CREATION AND DEVELOPMENT CORPORATION'S DISSOLUTION. ALL RIGHT. SO AT OUR LAST MEETING, I, I BRIEFED YOU ON THE PROPOSED EMD CREATION AND THE DISSOLUTION OF THE DEVELOPMENT CORPORATION'S, WHICH WILL TAKE AN ELECTION. SO IF THAT PASSES AND YOU REQUESTED THIS SPECIAL MEETING AND THIS ITEM FOR FURTHER INFORMATION AND DISCUSSION. UNFORTUNATELY, ADVISED BY OUR ATTORNEY TO NOT DISCUSS ANY FURTHER BEYOND THE FACTS THAT HAVE BEEN PROVIDED. WE'VE ALSO PROVIDED FREQUENTLY ASKED QUESTIONS BROCHURE THAT WAS IN YOUR PACKET, AND I BELIEVE THAT HAS BEEN POSTED ON SOCIAL MEDIA AND ON OUR WEBSITE TODAY. SO YOU CAN GET SOME ADDITIONAL INFORMATION THERE AND YOU CAN DIRECT OTHERS. IF YOU IF YOU KNOW OF OTHERS THAT ARE QUESTIONING WHAT THIS IS, THIS IS A GOOD RESOURCE. SO WE CAN'T EVEN ASK THE QUESTION. YOU CAN'T ANSWER. HE MAY BE ABLE TO ANSWER IT IN MY BRIEF. LOOKING AT IT. IS IT TRUE THAT THE MDD CAN USE THEIR FUNDS FOR INFRASTRUCTURE? YES, IT CAN USE FUNDS FOR INFRASTRUCTURE IF IT'S RELATED TO ECONOMIC DEVELOPMENT PURPOSES. SIMILAR TO CDC AND CDC CURRENTLY, NOT ROADS OR CAN BE ROADS. OKAY. BUT IT'S IT WOULD HAVE TO BE RELATED TO AN ECONOMIC DEVELOPMENT PROJECT BEING A COMMERCIAL AREA, INDUSTRIAL AREA, AND BE ABLE TO ATTRACT MORE DEVELOPMENT FOR THAT. THAT'S MY QUESTION. THANK YOU. NATHAN, DO WE HAVE ANOTHER PACKET AVAILABLE? SOMEHOW, OUR PRESIDENT HAS BEEN GIVEN 15 COPIES OF THE COVER PAGE AND NOTHING ELSE. I THINK I HAVE TWO. I'VE GOT MY. I HAVE ANOTHER ONE. THANK YOU. THE CDC. 
          YEAH. THANK YOU. WHAT HAPPENED WITH THE HR GRANT? YEAH. WITH THIS, THE PRESIDENT DOESN'T HAVE ANY NEW NEW GRANTS. I MEAN, OR NO, IT'LL BE GOVERNED BY ITS OWN BOARD APPOINTED BY THE COUNCIL. SO IT'LL BE UP TO THEM. SO ARE WE STILL ALLOWED TO KIND OF CREATE A ALMOST LIKE A TURNOVER WORKSHEET OF THINGS WE WERE DISCUSSING OR DO PLANNING ON DOING AN EDC, CDC? IF PERHAPS IT CHANGES OVER TO MDD. SO WE CAN KIND OF LIKE I SAID, A TURNOVER SHEET. OKAY, HERE'S WHAT WE HAD PLANNED. OR IS THAT NOT ALLOWED? I THINK INTERNALLY WE HAVE WHAT WE'RE WORKING ON. 
          YOU AS INDIVIDUALS COULD COME UP WITH A LIST AND PRIORITIES. AND IF YOU WANT TO SEND THAT TO COUNCIL MEMBERS AND LET THEM KNOW THESE ARE THINGS THAT HAVE BEEN WORKED ON. YOU WANT TO CONTINUE. THAT'S SOMETHING YOU CAN DO INDIVIDUALLY. I DON'T THINK THE BOARD THAT CAN BE DONE, BUT YOU HAVEN'T EVEN GIVEN US A LIST OF OUR CURRENT OBLIGATIONS. WHAT ABOUT THE CURRENT OBLIGATIONS THAT THE BOARDS HAVE ALREADY AGREED TO? WE DON'T EVEN HAVE THAT. SO YES, WE WILL BE PUTTING THAT TOGETHER. BUT YOU DON'T HAVE IT AVAILABLE FOR US TODAY. THOSE THOSE ARE ONGOING REGARDLESS. BUT WHAT IF THERE'S NO FUNDING IN THE ACCOUNTS? HOW ARE THEY ONGOING? THEY'LL BE FUNDED BY BY FUNDS THAT ARE AVAILABLE RIGHT NOW THAT ARE IN THE FUND BALANCE FOR THE EDC AND CDC. SO YOU'LL TRANSFER THOSE OBLIGATIONS IF THE FUNDING DOESN'T TRANSFER OVER. YOU'LL YOU'LL TRANSFER THOSE OBLIGATIONS TO THE TOWN WHEREVER THE FUNDING ENDS UP. THOSE FUNDS HAVE TO MEET CURRENT OBLIGATIONS THAT WILL CONTINUE. SO WE DON'T HAVE AN OBLIGATION NECESSARILY FOR THE GIFT CARD PROGRAM UP HERE ON 407. THAT WAS JUST PART OF THE SPECIAL COMBINED COUNCIL EDC CDC MEETING WHERE WE DISCUSSED 
          [00:05:02]
IT. SO THERE'S NO NOT NECESSARILY A LINE ITEM OR AN REAL OBLIGATION OF MONEY THERE AS FAR AS I KNOW, UNLESS I'M WRONG. THE ONLY THINGS THAT ARE HAVE ALREADY BEEN APPROVED, LIKE WITH THE AGREEMENTS THAT HAVE BEEN EXECUTED. BUT YOU HAVEN'T WE DON'T HAVE THAT INFORMATION. WE JUST HAVE TO REMEMBER WHAT WHAT'S ALREADY BEEN OBLIGATED. WE'VE GOT THE INFORMATION, BUT YOU HAVEN'T. YOU'RE NOT PRESENTING IT TONIGHT. IT'S. YEAH. THE OBLIGATION IS IS THERE REGARDLESS. SO I DIDN'T THINK THERE WAS A NEED TO PROVIDE YOU A LIST OF THE THINGS. SO. THIS MAY HAVE BEEN TALKED ABOUT, BUT DO WE HAVE A SAY IN THIS OR WE'RE JUST SORT OF THIS IS A FYI, THIS IS AN FYI, THERE'S AN ELECTION. IT'S UP TO THE VOTERS. 
          AND SO THIS IS THIS FACT SHEET KIND OF GOES OVER OVER THAT. OKAY, SO WE'RE GOING TO EMAIL YOU THE THINGS THAT WE WANT CAPTURED THE FAIR STATEMENT. YES. IF YOU WANT INFORMATION ON, ON THE, THE REMAINING OBLIGATIONS OF, OF THE, THE BOARDS, YOU CAN, YOU CAN REQUEST THAT FROM ME AND I CAN SEND THAT OUT TO YOU. THAT'S, THAT'S SEPARATE FROM THE, THE MDD. I THINK WE'RE ALL JUST ASSUMING WORST CASE, LIKE COUNCIL COULD APPOINT ALL NEW PEOPLE. AND THEREFORE, WITH THE EXCEPTION OF STAFF, THERE'D BE NO ONE TO TRANSFER OF INFORMATION OR KNOWLEDGE FROM WHAT WE'VE DONE TO THE NEW MDD. AND IT'S A CONCERN. MAYBE I'M BEING WAY TOO CONSERVATIVE HERE OR, YOU KNOW, DEBBIE DOWNER, BUT. IF IT'S NOT CONTRACTED LIKE THE THE MONUMENT'S CONTRACTED, RIGHT. THE STUDY, THOSE ARE CONTINUING ON. IF IT'S A GOAL OF OURS. THAT'S JUST THAT. WE DISCUSSED THAT THE LAST MEETING. AND, AND I DID FORGET THAT WE ACTUALLY DID APPROVE THAT AS A PROJECT. SO IT WAS BUDGETED. WE APPROVED IT AS A PROJECT AND WE'VE ACTUALLY ENGAGED HALF TO DESIGN THOSE SO THAT THAT CAN MOVE FORWARD AS A THAT WOULD BE AN OBLIGATION THAT WE CAN MOVE FORWARD ON. I'M SORRY, I HAVE TO GO BACK TO THE POINT OF WHY WHY WEREN'T WE EVEN AT LEAST GIVEN THAT INFORMATION THIS EVENING? BECAUSE NOW WE'VE BEEN TOLD THAT WE CAN'T, THAT THERE'S NO INFORMATION MOVING FORWARD ON ANYTHING THAT WAS A WISH OR A DREAM OR I UNDERSTAND THAT. BUT WHY WEREN'T WE PRESENTED WITH THE INFORMATION, AT LEAST OF THE UPDATED FINANCIALS, OF WHAT? THAT WOULD HAVE BEEN A NICE CLOSEOUT FOR THE EDC AND THE CDC, IF THEY'RE NO LONGER GOING TO EXIST, TO AT LEAST KNOW WHAT PROJECTS WERE FUNDED FULLY, WE WE WERE INFORMED BY OUR ATTORNEY THAT WE COULD HAVE A CLOSEOUT MEETING IF THE ELECTION PASSES, THEN WE COULD STILL HAVE A CLOSEOUT MEETING IN MAY FOR OUR REGULAR MEETING. SO THAT COULD BE SOMETHING THAT WE PROVIDE AT THAT TIME. WE WOULD LIKE TO DO THAT. CAN CAN YOU TAKE A NOTE AND JUST MAKE SURE IF THIS TURNS OVER AND BECOMES MDD, WE CAN HAVE A CLOSEOUT MEETING WITH THE INFORMATION THAT SONJA'S REQUESTING AND THEN SOME SORT OF TURNOVER SHEET. IF WE EVEN HAVE ANY ITEMS THAT WE WANT NEED TO CONSIDER. OKAY. I MEAN, WOULDN'T THE MDD BE GIVEN OUR MEETING MINUTES AND KIND OF SEE WHAT WE'VE DONE? I JUST DON'T KNOW HOW MUCH DETAIL. IF YOU READ IT ALL, THAT'S MY THING, I DON'T KNOW. YEAH. BUT ANOTHER THING TO KEEP IN MIND. WE STILL HAVE YOUR TOWN COUNCIL. YEAH. 
          SO YOU CAN REACH OUT TO THIS BOARD. WILL, IF THE MDD IS CREATED, IT WILL HAVE THE SAME OPEN MEETINGS REQUIREMENTS. AND AND SO IT'S NOT LIKE THEY'LL BE DOING ANYTHING THAT WON'T BE KNOWN AND THEY'LL BE AVAILABLE. AND YEAH. SO WHETHER, WHETHER ANY OF YOU ARE ON THAT BOARD IN THE FUTURE, IF IT'S CREATED OR NOT, YOU CAN ALWAYS HAVE INPUT JUST LIKE YOU CAN ON WITH THE TOWN COUNCIL OR ANY OF THE BOARDS. ANY OTHER QUESTIONS, COMMENTS, FEEDBACK. THANKS, ETHAN. MOVE ON. SO ITEM NUMBER THREE, PUBLIC INPUT. IS THERE ANYONE IN ATTENDANCE WHO WANTS 
          [00:10:05]
TO ADDRESS THE BOARD ON PUBLIC INPUT? NO. OKAY. MOVE ON TO ITEM FOUR ACTION ITEMS. ITEM A 
          [4.A. Consider approval of Pioneer Grant and performance agreement for Function Coffee Co.]
CONSIDER APPROVAL OF PIONEER GRANT AND PERFORMANCE AGREEMENT FOR FUNCTION COFFEE COMPANY. Q. 
          I'LL GIVE YOU A Q IN JUST A SECOND. OKAY. ALL RIGHT. SO THIS IS ANOTHER ITEM THAT WE DISCUSSED AT THAT LAST MEETING. SO THERE WAS AN APPLICATION FOR PIONEER GRANT FOR RETAIL COFFEE SHOP, KIND OF AFTER THE APPLICATION WAS RECEIVED. AND JUST SOME DISCUSSIONS, WE TALKED ABOUT LOCATING A ROASTERY IN NORTH LAKE AS PART OF IT. SO IT KIND OF CONFUSED THINGS. WHAT IS THIS APPLICATION FOR? SO REQUESTED THAT THE PUBLIC HEARING AND ITEM BE POSTPONED TO THE SPECIAL MEETING TO RECEIVE AN UPDATED APPLICATION AND ADDITIONAL INFORMATION ON THE PROPOSED ROASTERY. SO YOU HAVE THAT NEW APPLICATION BEFORE YOU AND IN SOME DISCUSSIONS BEFORE RECEIVING THAT APPLICATION, THERE WAS SOME CONCERNS THAT JUST LOOKING AT THE ROASTERY ALONE DOESN'T REALLY FIT NEATLY WITHIN THE PIONEER GRANT. SO TONY AND I KIND OF DISCUSSED THIS OPTION TOGETHER. MAYBE WE LOOK AT IT ALL TOGETHER, MAYBE A PHASED APPROACH, MAYBE A LITTLE BIT OF SOMETHING FOR THE COFFEE SHOP. THEN WITH AN ADDITIONAL INCENTIVE TO BRING THE ROASTERY IN THE FUTURE. SO THAT IS WHAT THE REQUEST IS BEFORE YOU AND THE TWO PHASED APPROACH. AND I WILL TURN IT OVER TO YOU GUYS TO GET YOUR PRESENTATION. I KNOW YOU SAID YOU DIDN'T NEED A FULL PRESENTATION, BUT SINCE THIS KIND OF CHANGED EVEN MORE THAN WHAT WE DISCUSSED LAST TIME, ONE OF THEM TO KIND OF PRESENT THIS PHASING OPTION, WE PROMISE. WE DON'T LIKE TO BE CONFUSING. SO THAT'S WHY WE WOULD LIKE TO CLEAR IT ALL UP TODAY. OKAY. AS NATHAN SAID, WE'RE TAKING A MORE HOLISTIC APPROACH TO THE ASK BECAUSE WE ARE THE OWNERS OF BOTH LLCS. CONSIDER THIS AN UMBRELLA PROPOSAL AND ASK FOR THE PIONEER GRANT. IT'S GOING TO BE STREAMLINED. WE'RE GOING TO LEVEL SET TODAY AND THEN WE'LL SEE WHERE WE LAND. SO WHAT ARE THE TWO BUSINESSES THAT MAKE FUNCTIONING COFFEE. 
          OUR FIRST IS FUNCTION COFFEE CO, WHICH IS OUR ROASTING FACILITY. SO CURRENTLY THAT COMPANY IS ROASTING COFFEE FOR BOTH LOCAL AND NATIONAL SALES PEOPLE SALES. THE FUTURE OF THAT BUSINESS WILL BE ON SITE EXPERIENCES, CLASSES, WORKSHOPS AND COMMUNITY EVENTS WITH WHOLESALE EXPANSION THAT WE EXPECT TO GET NORTH. LIKE A LOT OF EXPOSURE AND ROASTING FUNCTION FOR FUNCTION COFFEE SHOPS. OUR GOAL, LIKE AS WE MENTIONED LAST MEETING, IS TO HAVE MULTIPLE LOCATIONS IN THE NEXT 5 TO 10 YEARS, AND THAT ROASTERY WILL BE SUPPORTING ALL OF THOSE SHOPS AND HOPEFULLY MORE THAT ARE BRANDED IN THEIR OWN WAY. OUR SECOND LLC IS FUNCTION NORTH LAKE LLC, WHICH IS OUR COFFEE SHOP. CURRENTLY, THE COFFEE SHOP IS STILL BEING BUILT OUT AND WE ARE DOING OUR POP UP LOCATIONS, OUR FARMERS MARKETS, CATERING EVENTS. WE JUST DID A BABY SHOWER LAST WEEKEND, SCHOOL AND COMMUNITY BULK ORDERS. WE HAVE TEACHERS AT TWO DIFFERENT ELEMENTARY SCHOOLS WHO ARE ON A SUBSCRIPTION BASE, AND WE DELIVER THEIR BULK COFFEE TO THEM IN THEIR INDIVIDUAL CANS EVERY FRIDAY. THE FUTURE OF THE COFFEE SHOP IS GOING TO INCLUDE EVERYTHING WE'VE BEEN DOING PRE SHOP LAUNCH WITH THOSE COFFEE CARTS AND THINGS, AND THEN ADDING ALL TRANSACTIONS ON SITE THAT WILL INCLUDE MERCH, WHICH WE'RE SO EXCITED TO PUT NORTH. LIKE ALL OF OUR T SHIRTS, PEOPLE HAVE BEEN ASKING FOR STUFF. OUR KIDS HAVE BEEN WEARING IT TO SCHOOL AND EVERYBODY'S LIKE, I NEED THAT SWEATSHIRT AND BEVERAGE, FOOD, MERCH, RETAIL EVENTS, ETC. WE JUST MET THIS MORNING WITH CHRISTY AT BRANDON BAGELS AND HAD A BIG BRAINSTORMING SESSION ON HOW WE CAN BRING ALL OF THE NORTH LAKE COMMONS BUSINESS OWNERS TOGETHER TO REALLY HELP EACH OTHER AND SUPPORT EACH OTHER AND COLLABORATE. AND THOSE ARE THE TWO. SO LET'S DIVE INTO SOME MORE DETAILS, STARTING WITH THE ROASTERY, WHICH AGAIN IS FUNCTION COFFEE COFFEE CO, LLC. RIGHT NOW, 
          [00:15:01]
WE'VE SHIPPED COFFEES TO 38 OUT OF THE 50 STATES. AND IN ORDER TO KEEP THE SCALE AND MOMENTUM GOING, WE NEED TO INVEST IN IN ADDITIONAL ROASTER, OCCUPY A LARGER FACILITY AND BUILD THAT FACILITY OUT IN ORDER TO SUSTAIN THAT GROWTH, AS WELL AS HOST EVENTS AND REALLY BRING THE COMMUNITY TOGETHER. INTERESTINGLY ENOUGH, NORTH LAKE ACCOUNTS FOR NEARLY 30% OF ALL SALES, EVEN THOUGH WE'VE SOLD TO 38 OF THE 50 STATES, WHICH I THINK IS REALLY, IT'S A COOL LITTLE HEARTBEAT MOMENT. SO PROJECTIONS FOR THE ROASTERY SIDE ALONE IN 2025 AS A SIDE HUSTLE IS WHERE IT STARTED. WE BROUGHT IN NEARLY 65 K. I ACTUALLY PUT MY TWO WEEKS IN AT MY CORPORATE JOB YESTERDAY. SO. AND SO YEAR TWO PROJECTIONS WHERE IT'S NO LONGER A SIDE HUSTLE, WHERE WE ARE SAYING IT'S GOING TO BE 100 K YEAR THREE, 300 K AND THEN A SEVEN FIGURE ROASTERY BY YEAR FIVE. AND YOU MIGHT BE THINKING HOW DO WE GET THERE? SO FIRST OF ALL, WE'RE GOING TO LIKE WE SAID AT THE BEGINNING, FULFILL ALL OF THE CAFES THAT WE OPEN, STARTING WITH THE FLAGSHIP CAFE HERE IN THE COMMONS FOR DAILY USE AS WELL AS RETAIL SHELVES. 
          WE'RE ALSO GOING TO EXPAND AND CONTINUE OUR E-COMMERCE DIRECT TO CONSUMER BOTH LOCALLY AND NATIONALLY. ALSO EXPANDING WHOLESALE AND WHITE LABEL OPPORTUNITIES FOR THIRD PARTIES LIKE COFFEE TRUCKS, COFFEE TRAILERS AND OTHER CAFES THAT WOULD WANT TO CARRY OUR PRODUCT, GROCERY STORES AND MARKETS, AND ALSO CORPORATE GIFTS. WE'RE DOING A CORPORATE CONVENTION IN A COUPLE OF WEEKS. THERE IS A PASTOR IN PECAN SQUARE WHO JUST LAUNCHED A BOOK, AND HE'S GOING TO HAVE OUR BEANS AS PART OF HIS LIKE GIVEAWAY FOR HIS BOOK. AT THE CONVENTIONS HE GOES TO. 
          AND NUMBER FOUR, THE EXPERIENTIAL SIDE OF THE ROASTERY, THINKING LIKE A BREWERY, TOURS, CLASSES, TASTING EXPERIENCES, ETC. NOW GOING INTO THE CAFE. SO WE ARE FINISHING BUILD OUT. THIS IS A PICTURE OF MY DAD AND I DOING THE BOARD AND BATTEN WALLS AND SHELVES. WE WERE UP THERE AT 545 IN THE MORNING. WE CAME BACK, WE DID INTERVIEWS, I WENT TO MY DAY JOB, AND THEN WE WENT THERE AT SUNSET AND FINISHED OUT AND IT'S LOOKING REALLY GOOD. WE'RE ABOUT SIX WEEKS OUT FROM OPEN. WE HAVE EXTENDED JOB OFFERS TO EIGHT HOURLY EMPLOYEES. WE HAD OVER 100 APPLICANTS IN THE IN THE MONTH OF MARCH, WHICH IS INSANE. THAT WAS A FULL TIME JOB IN ITSELF, JUST SORTING THROUGH THEM ALL. AND WE ARE STOCKING UP ON SUPPLIES, INVENTORY AND MERCH. WE HAVE A GOAL TO BECOME NORTH LAKES LIVING ROOM. THAT'S KIND OF WHAT WE'VE BEEN TELLING FOLKS. WE'RE GOING TO BE NORTH LAKES LIVING ROOM. WE WANT TO REINFORCE COMMUNITY AND HOSPITALITY, INCREASED FOOT TRAFFIC TO THE AREA, AND ESTABLISH A PRESENCE AS A PREMIER SPECIALTY COFFEE SHOP, NOT ONLY IN NORTH LAKE, BUT OF ALL OF DFW. AND IN DOING SO, BY YEAR 2027, WE WANT TO INCREASE WORKFORCE AND THEN PROMOTE MANAGERS FROM WITHIN. PROJECTIONS FOR THE CAFE YEAR ONE TOP LINE, WE'RE ESTIMATING 500 TO $600,000 WITH AN AOV OF 11 TO $24 AND MONTHLY TRANSACTIONS WITH A RAMP OF 28 TO 3500 TRANSACTIONS. AND THAT PROJECTION CONTINUES 20% YEAR OVER YEAR, MAKING A SEVEN FIGURE CAFE BY YEAR FIVE AGAIN. HOW DO WE GET THERE? SO RIGHT NOW WE DON'T HAVE MOBILE AND DELIVERY BECAUSE WE'RE NOT OPEN. BUT IN Q3 WE WANT TO LAUNCH MOBILE AND ORDER AHEAD LAUNCH DELIVERY AND A POINTS PROGRAM TO WHERE PEOPLE ARE ENCOURAGED TO HAVE REPEAT VISITS AND CASH IN ON THEIR POINTS. PART TWO IMMEDIATELY UPON OPENING. WHEREAS WE ARE RESERVING SUNDAYS FOR RENTING OUT THE SPACE FOR BRIDAL PARTIES, BABY SHOWERS, BRUNCH, SIP AND SEIZE WHATEVER IT IS, AND THEN THREE FURTHER DEVELOP THE FOOD PROGRAM. RIGHT NOW WE HAVE SIGNED SOME LOCAL BAKERS THAT WE'RE GOING TO HAVE LIGHT EATS, BUT BECAUSE WE HAVE THE SPACE IN THE BACK, WE WANT TO EXPAND THAT INTO A MORE FULLY FLESHED OUT BREAKFAST LUNCH MENU. ONE NOTE IN BACKING UP OUR PROJECTIONS, BECAUSE 500 600 K FOR A NEW BUSINESS IS LOFTY. 
          HOWEVER, OUR AVERAGE POP UPS FOR A THREE HOUR EVENT WE DO BETWEEN 150 AND 200 DRINKS IN THREE HOURS, AND THAT IS SERVING FOUR DRINKS IN A THREE HOUR TIME. SO THE CAFE WILL BE OPEN NINE HOURS MONDAY THROUGH SATURDAY. SO WE ANTICIPATE THAT THIS PROJECTION IS ACTUALLY RATHER CONSERVATIVE. A MENU OF ONLY FOUR ITEMS JUST FOR FOR DRINKS IS WHAT WE DO AT THE POP UPS. TAKE US HOME. OKAY, SO OUR PROPOSAL IS TWO PARTS, ONE BEING FOR FUNCTION COFFEE 
          [00:20:02]
ROASTER. LET'S JUST CALL IT COFFEE ROASTER. THAT'S A $20,000 GRANT THAT IS CONTINGENT ON US MOVING THE ROASTERY, WHICH IS NOW CURRENTLY IN JUSTIN BACK TO THE CITY OF NORTH LAKE IN THE NEXT 18 TO 36 MONTHS. AS MUCH AS WE WOULD LOVE TO DO IT RIGHT NOW, WE'RE JUST TWO PEOPLE AND WE'RE DOING EVERYTHING WE CAN TO GROW THIS BUSINESS, AND WE JUST NEED A LITTLE BIT OF TIME. IN THE MEANTIME, WE WILL CONTINUE ROASTING IN JUSTIN, BUT LEAVE NORTH LAKE, TEXAS ON OUR BAGS BECAUSE WE ARE COMMITTED TO BRINGING THAT BUSINESS BACK TO NORTH LAKE. SO AGAIN, THAT $20,000, IF WE WOULD REPRESENT AT THAT TIME, WE'RE READY. 
          WE'VE GOT A LEASE SIGNED, HOPEFULLY AT NORTH LAKE BUSINESS PARK OR WHEREVER. AND NOW WE'RE ASKING FOR THE CITY SUPPORT TO COME IN AND AND HELP US AT THAT TIME FOR THAT PORTION OF THE GRANT. THE OTHER PORTION OF THE GRANT IS MORE IMMEDIATE, A $15,000 GRANT THAT WOULD. WE ARE REQUESTING $15,000 TO BE ISSUED TO US WHEN WE RECEIVE OUR CEO TO HELP US SUPPORT THE FINISH OF THE BUILD OUT OF OUR SHOP. BRINGING EVERYTHING IN THE FURNISHINGS AND MOST IMPORTANTLY, TO SUPPORT US IN OUR OPENING MONTHS OF TRAINING, OUR EMPLOYEES, PRE-LAUNCH AND GETTING TO THAT NORTH LAKE MERCH AND BEING ABLE TO HAVE A VARIETY OF SIZES AND STYLES, HATS AND MUGS AND T SHIRTS AND ALL THE THINGS THAT JUST SAY NORTH LAKE, TEXAS COFFEE CO ON IT THAT WE COULD HOPEFULLY SELL TO EVEN OUR ALLIANCE AND MID CITIES GUESTS THAT COME AND VISIT US AND, AND SELL IT TO THEM AS WELL AND HAVE THEM REPPING NORTH LAKE, EVEN THOUGH THEY MIGHT NOT LIVE HERE. YES. THAT'S IT. THANK YOU, THANK YOU. 
          HAPPILY ANSWER ANY QUESTIONS. NOW. ONLY ONE QUESTION. SO OUR PAPERWORK SAYS 40 TOTAL IS THE ASK. THIS IS I THINK THAT SLIDE WAS 35. YEAH. WE CAN BUMP IT UP. IF THAT WAS THAT WAS ASKING THE UPDATED APPLICATION THAT WE DISCUSSED. BUT WAS IT 25 AND 15? THAT MIGHT, THAT MIGHT HAVE JUST BEEN A TYPO ERROR, A TYPO ERROR IN A SLIDE OR A TYPO ERROR IN YOUR FORM. THE SLIDE. 
          BECAUSE WE WE HAD DISCUSSED THE NEW PROPOSAL BEING 40, AND THEN I APPLIED RIGHT AFTER. SO THE PAPER IS RIGHT. YEAH. LAST TIME WE TALKED TWO WEEKS AGO, YOU ALL DIDN'T NEED ANY FUNDING FOR THE BUILD OUT. DID SOMETHING CHANGE IN TWO WEEKS WHERE YOU NOW YOU NEED 15 K FOR THE BUILD OUT FOR THE CAFE, FOR THE CAFE. SO FOR THE BUILD OUT ITSELF, WE ARE COVERED. THAT IS FOR THE BUILD OUT PORTION. WE STILL HAVE TO FURNISH IT. WE STILL HAVE TO GET THE EQUIPMENT IN THERE AND THEN TRAIN FOLKS BEFORE WE START HAVING INCOME COMING IN FROM OPENING OUR DOORS. SO IT'S, IT'S ENCOMPASSED IN THE BUILD OUT, WHICH IS, WHICH IS TO SAY FURNISHING, YOU KNOW, ADDING LIGHT FIXTURES, HANGING STUFF IN THE WALLS AND TRAINING FOLK THAT AND MORE RETAIL, BEING ABLE TO SELL MORE RETAIL TO INCREASE OUR SALES TAX WILL ONLY INCREASE OUR TICKET PRICE. SO IF WE HAVE, YOU KNOW, IF YOU'VE EVER ORDERED T SHIRTS BEFORE, IF YOU ORDER THEM IN BULK, YOU GET A BETTER DISCOUNT. SO AS WE LOOK AT HOW MANY SKUS WE'RE GOING TO HAVE, THE MORE WE CAN BUY OF THAT UP FRONT, IT'LL BE IT'LL MAKE OUR COSTS LOWER AND HOPEFULLY INCREASE OUR SALES TAX AND GET THAT TICKET PRICE UP TO A HIGHER PRICE. BUT YES, PRICE HAS CHANGED ON EVERYTHING ON US AND CONTINUED TO OUR COUNTERTOPS ALONE INCREASED $3,000 MORE THAN WE WERE SUPPOSED TO BE JUST A FEW DAYS AGO. I ACTUALLY JUST RECEIVED FOUR PALLETS OF THE CANS THAT WE SERVE OUR BEVERAGES IN, AND BECAUSE OF THE SORT OF GLOBAL SITUATIONS HAPPENING, GAS AND SHIPPING HAS JUST GONE OUT OF THE ROOF. AND SO EVEN THE SHIPPING PRODUCT HERE ALONE IS LIKE THREE X WHAT IT WAS FROM OUR INITIAL, OUR INITIAL QUOTES FROM OUR CONTRACTOR THAT WE AGREED UPON WITH HIM IN THE BEGINNING, OUR BUILD OUT COST INCREASED OVER $30,000. SO AND THAT'S BEFORE THINGS WERE DISCOVERED AND 
          [00:25:06]
NEEDED TO BE, YOU KNOW, THINGS LIKE THE COUNTERTOPS NEEDED TO BE A CERTAIN. WE NOW HAD TO MAKE MORE CUTS TO MAKE THEM TWO DIFFERENT LEVELS. EVEN, YOU KNOW, THE ADA LEVEL VERSUS THE NORMAL LEVEL VERSUS THE HIGH TOP LEVEL. SO. SO YOU PROJECTED BETWEEN 100,000 AND 250,000 TOTAL REVENUE IN YEAR ONE FOR THE ROASTERY. DOES THAT IS THAT JUST SELLING TO THE OUTSIDE WORLD GROCERY STORES, THINGS OF THAT NATURE, OR DOES THAT ALSO INCLUDE FUNCTION COFFEE BUSINESS SELLING TO THE CAFE BUSINESS BOTH INCLUDES BOTH. AND HOW WOULD YOU SAY HOW WOULD YOU SPLIT THAT? SO I WOULD SO FUNCTION. NORTHLAKE WOULD BUY COFFEE AT A, AT A SMALL MARGIN FROM FUNCTION COFFEE LLC. WHEN WE WHOLESALE TO OTHER TRAILERS OR TRUCKS, IT IS AT A SLIGHTLY LOWER THAN TRADITIONAL RETAIL VALUE BECAUSE THEY BUY IN BULK. AND THEN SO WE HAVE ALSO THE COFFEE THAT WE USE FOR PEOPLE TO CONSUME ON SITE, AND THEN ALSO RETAIL BAGS THAT THEY TAKE HOME WITH THEM. SO THE, SO THE RETAIL SIDE OF IT, THEY WOULD PAY TAX ON, ON WHATEVER THE SALES ARE, RIGHT. BUT INTERNALLY, THE BUSINESS, THE CAFE BUSINESS WOULDN'T PAY TAX ON THAT BECAUSE THEY, BECAUSE IT'D BE. THAT'S CORRECT. BECAUSE THE, THE CONSUMER WOULD PAY THE TAX SOLD AT THE CAFE. RIGHT. AND PART OF THE. AND THAT'S ONE OF THE THINGS ABOUT THE ROASTERY, WHICH IS IT'S, IT'S LESS SALES TAX GENERATING. AND THAT'S PART OF THE REASON WHY THE EVENTS, THE COMMUNITY BUILDER ACTIVITIES, THE TICKETED TASTINGS THAT WILL GET, EXCUSE ME, THAT WILL INCUR SALES TAX IN THOSE SITUATIONS. AND OUR HOPE IS THAT A LOT OF NORTH LAKE AND ARGYLE, LOCAL COFFEE BEAN CONSUMERS WHO TONY IS DELIVERING DOOR TO DOOR LIKE LITERALLY IN A PAPER BAG EVERY DAY. WE'RE HOPING THAT THEY'LL COME INTO THE SHOP, BUY THEIR COFFEE AND GET A COFFEE AND SAY HI TO US AND ALL OF THAT, RATHER THAN MAYBE ALWAYS DOING THE SUBSCRIPTION BASE AND NEVER COMING IN FOR A DRINK. SO THAT'LL, THEY MIGHT CONVERT FROM SOME, SOME OF THE PEOPLE ARE GOING TO STICK WITH THEIR SUBSCRIPTIONS, BUT OTHERS MIGHT COME INTO THE SHOP AND THEY'RE LIKE, OH, I KNOW I GO IN THERE AND WORK FOR MY LAPTOP EVERY OTHER MONDAY, I'M GOING TO JUST TAKE HOME A BAG OF BEANS WITH ME FOR HOME FOR THE REST OF THE WEEK, SO THAT THEY MIGHT CONVERT FROM E-COMMERCE TO IN-STORE FUNCTION. MORE LIKE SALES. HOW MANY BAGS? I MEAN, IF YOU I THINK THE LAST THE LAST TIME WE WERE HERE, YOU SAID THAT YOU SOLD ABOUT 2500 BAGS OF BEANS. IF YOU WERE. IS THAT TOTALLY TO THE OUTSIDE WORLD OR IS THAT SPLIT BETWEEN THE TWO OF THEM? AND IF SO, I MEAN, WHAT WOULD BE THE SPLIT 50, 50, 60, 40 OR SO? THAT WAS ONLY DIRECT TO CONSUMER E-COMMERCE. OKAY. THAT DIDN'T INCLUDE ANY OF THE WHOLESALE WE'VE DONE SO FAR OR EVENTS THAT WE HAD SOLD BEANS TO, OR WE USED TO SUPPLY SOME TO FAT COW AND THEY WERE STILL MOUNTED AS A TRAILER. THERE WAS ANOTHER CART THAT WE USED TO SUPPLY AS WELL, BUT THAT NUMBER IS DIRECT TO CONSUMER E-COMMERCE. AND IF YOU HAD A CRYSTAL BALL, YES, YOU'RE PROJECTING MOVING THE ROASTERIES BACK TO NORTH LAKE BETWEEN A YEAR AND A HALF AND THREE YEARS. RIGHT. WHAT ARE YOU THINKING IN YOUR OWN MIND WHERE YOU'D REALLY LIKE TO BE? WE LOVE TEXAS BUSINESS PARKS. WE DID THE TOUR. MIKE IS AWESOME. YEAH. NORTHLAKE, TEXAS BUSINESS PARKS WENT UP THERE, HAD A GREAT CONVERSATION WITH THEM. IF IT'S NOT THERE, MAYBE WE BUILD SOMEWHERE OR BUY SOMETHING THAT'S AVAILABLE. BUT RIGHT NOW THAT WAS THAT WAS THE IDEA WAS NORTHLAKE, TEXAS BUSINESS PARKS. WHEN WE WENT TO THAT GRAND OPENING, THEY WERE SAYING THEY WERE TALKING ABOUT THE DIFFERENT TYPES OF BUSINESSES THEY WANTED TO SEE IN THERE. THEY'D LOVE TO SEE A DANCE STUDIO, MAYBE A VOLLEYBALL PLAYS BASEBALL PLAYS DIFFERENT TYPES OF RETAIL AND AND BACK OFFICE TYPE SPACES. 
          AND A COFFEE ROASTERY COULD BE GREAT TO BE TUCKED INTO THE MIDDLE OF THAT. YOU DROP YOUR DAUGHTER OFF AT DANCE, YOU'VE GOT AN HOUR, YOU'RE WALKING AROUND, YOU GO IN AND YOU CHECK OUT THE ROASTERY, SEE THAT? SEE ON THE SIGN THAT WE'VE GOT CLASSES AND MAYBE YOU'RE LIKE, 
          [00:30:04]
HEY, MAYBE THAT'S SOMETHING I WANT TO DO WITH MY GIRLFRIENDS NEXT FRIDAY, YOU KNOW, DO A LITTLE COFFEE ROASTING EXPERIENCE. SO I THINK WE WOULD GET SOME INTERESTING FOOT TRAFFIC OVER THERE. BUT AGAIN, THEY'RE LIKE IN THE NEWER STAGES. SO I THINK IN THAT 18 TO 36 MONTHS, WE'LL HAVE A GOOD IDEA OF WHAT TYPE OF BUSINESSES ARE GOING INTO THAT BUSINESS PART AND WHERE IN THAT ENORMOUS BUSINESS PARK WE MIGHT BE A GOOD FIT. WOULD YOU POTENTIALLY HAVE RETAIL SALES OUT OF THE ROASTERY? I MEAN, IT SOUNDS LIKE THINKING IF THERE'S A, YOU KNOW, PEOPLE THAT ARE FOOT TRAFFIC THERE WITH THE DANCE STUDIO OR THINGS OF THAT NATURE, IF YOU HAD, YOU KNOW, DRINKS ALREADY MADE OR SOMETHING LIKE THAT, IS THAT SOMETHING THAT IS ON THE TABLE AS WELL? DEFINITELY HAVE RETAIL SHELVES, THE BEANS, THE MERCH, AND EVEN EVEN, YOU KNOW, THE HOME MAKERS AND ARTISANS AND STUFF THERE. THEY COULD HAVE SHELVES AS WELL. 
          WE JUST HAVE TO HAVE THE LABEL THAT SAYS WASN'T MADE IN A COMMERCIAL KITCHEN FOR THE COTTAGE. PEOPLE LIKE OUR MOTHER AND FATHER IN LAW ARE GOING TO HAVE THEIR SWEET AND SPICY PICKLES ON OUR SHELVES IN THE COFFEE SHOP. HOPEFULLY SOME LITTLE JAMS AND THINGS. WHAT WOULD BE THE REASONS TO TO MOVE IN THREE YEARS VERSUS A YEAR AND A HALF? WHAT WOULD BE THE HOLDUPS FOR YOU? IT WOULD BE FINANCIAL. SO RIGHT NOW, THE FACILITY THAT WE'RE AT IN JUSTIN, WE OWN WE OWN THE PROPERTY. IT'S A MIXED USE COMMERCIAL RESIDENTIAL. IT WAS ORIGINALLY AN AIRBNB. WE WOULD LIKE TO TURN IT INTO A RENTAL AGAIN TO HAVE THAT INCOME. NOW, THAT BEING SAID, IT DOESN'T MEAN THAT WE'RE IMMEDIATELY FINANCIALLY ABLE TO MOVE THE ROASTERY RIGHT NOW BECAUSE WE ARE IN A SEVEN YEAR, VERY EXPENSIVE LEASE IN THE COMPLEX. 
          SO RIGHT NOW THAT IS THE LIKE, WE GOT TO EAT, WE GOT TO MAKE THIS CAFE WORK. AND IN 18 TO 36 MONTHS, WE'RE GOING TO KNOW EXACTLY THE TRAJECTORY OF BOTH COMPANIES VERY WELL. AND THAT'S THAT'S WHERE THE ESTIMATION CAME FROM. AND IN FULL TRANSPARENCY, JUST SO YOU UNDERSTAND HOW FAST TONY AND I WORK AND MAKE DECISIONS AND WORK OUR ENDS OFF TO MAKE THINGS HAPPEN. WE WE BOUGHT THAT HOUSE IN JUSTIN LAST YEAR OR AT THE AUGUST OF 2024, AUGUST, I THINK AUGUST OR SEPTEMBER OF 2024. WE UPDATED IT, WE FURNISHED IT, WE MADE IT A SUCCESSFUL AIRBNB IN THE MIDDLE OF JUSTIN, WELL, RIGHT BEHIND MARGARITAS. WE HAD AT LEAST THREE WEEKENDS EVERY SINGLE MONTH BOOKED OUT FOR A YEAR. AND WE DIDN'T SHUT IT DOWN BECAUSE IT WAS FAILING. IT WAS DOING WELL, BUT WE ALSO CAME UP, YOU KNOW, HAD THIS OPPORTUNITY TO GET A BRICK AND MORTAR, WHICH WAS TRUTHFULLY ON THE 3 TO 5 YEAR PLAN TO DO BRICK AND MORTAR. WE THOUGHT WE WOULD BE ROASTING COFFEE FOR A HANDFUL OF YEARS, GROW THAT SIDE OF THE BUSINESS, DO POP UPS. BUT WHEN THIS OPPORTUNITY CAME UP, I'M LIKE, WE HAVE TO GET IN THERE. WE WANT TO BE IN NORTH LAKE COMMONS. THIS MIGHT BE OUR ONLY OPPORTUNITY. SO WE MOVED SWIFTLY. WE ARE POURING EVERYTHING WE HAVE INTO THIS. WE SHUT DOWN THE AIRBNB, BOTH STILL WORKING TO, YOU KNOW, FULL TIME IN OUR NORMAL JOBS AND MADE IT HAPPEN, TRANSITIONED, SOLD THE FURNITURE OUT OF THE AIRBNB, MOVED EVERYTHING IN THERE TO MAKE IT THE ROASTING FACILITY HAD TO UPGRADE ELECTRICAL IN ORDER TO MAKE THAT HAPPEN. OUR ROASTERY, BECAUSE IT IS ELECTRIC, REQUIRES SPECIFIC ELECTRICAL OUTLETS. AND SO WE MADE THAT HAPPEN. AND THAT THAT JUST HAPPENED BECAUSE AS WE TOLD Y'ALL LAST TIME, WE ORIGINALLY PLANNED ON ROASTING IN OUR NORTH LAKE CAFE IN THE BACK ROOM. BUT BECAUSE THE GROWTH IS HAPPENING SO FAST, WE'RE LIKE, WE NEED TO RESERVE THAT, WHICH WAS, YOU KNOW, I SAID, WE NEED TO KEEP THAT BACK ROOM FOR, FOR A KITCHEN TO GROW OUR FOOD PROGRAM BECAUSE WE'RE GOING TO NEED IT. AND OUR RENT IS INCREASING EVERY SINGLE YEAR UP TO SEVEN YEARS. AND WE NEED TO BE ABLE TO INCREASE OUR AVERAGE PRICE TICKET. SO, SO JUST SO YOU KNOW, IT'S NOT LIKE WE'VE OWNED THAT HOUSE FOREVER. THAT WAS A BIG INVESTMENT OF ANOTHER BUSINESS THAT TOOK OFF AND DID REALLY WELL, REALLY FAST. BUT WE'RE SHIFTING BECAUSE THIS COFFEE COMPANY IS OUR PRIORITY, AND WE DID NOT WANT TO MISS OUT ON THE OPPORTUNITY TO BE HOPEFULLY THE BEST COFFEE SHOP IN THE HEART OF NORTH LAKE. CAN YOU TELL US WHAT THAT LEASE AMOUNT IS? WHAT THE EXPENSE IS HERE? YEAH, I DON'T KNOW IF THEY COME TO CAN WE? IS THAT SOMETHING WE CAN SHARE? TO YOU? OH, OKAY. INCLUDING TRIPLE NET. IT'S RIGHT UNDER 6000 A MONTH. IT'S MORE THAN MY 4000 SQUARE FOOT DANCE STUDIO THAT I HAD IN MY 20S AND IN THE HEART OF 
          [00:35:04]
COLLIERVILLE. AND SO. IN YOUR FIRST YEAR. SO YOU'RE LOOKING AT AN AVERAGE OF 25 TO 35,000 HOURLY EMPLOYEES, RIGHT? ARE YOU LOOKING MORE TOWARDS THE LOW END, 25,000 OR SO? THE HOURLY EMPLOYEES, THEY ARE GOING TO AVERAGE BETWEEN 18 AND 24 HOURS EACH PER WEEK. AND WE EXTENDED OFFERS TO EIGHT OF THEM THIS WEEK. AND AN AVERAGE HOURLY WAGE RATE OF WHAT, DEPENDING ON EXPERIENCE, BETWEEN 9 AND 12 AN HOUR PLUS TIPS, WHICH TYPICALLY IN A THREE HOUR MARKET. OUR LAST MARKET, WE HAD $196 IN TIPS. TONY AND I IS MANAGERS AT THE COFFEE SHOP AND THAT'S IN A THREE HOUR TIME PERIOD. TONY AND I WILL NOT BE MANAGEMENT WILL NOT BE RECEIVING TIPS. SO EVEN IF TONY IS BEHIND THE BAR AND I'M FRONT OF HOUSE AND WE'VE GOT 2 OR 3 EMPLOYEES WITH US, US, THEY WILL BE ON TIP SHARE FOR THEIR FOR THEIR SHIFT. 
          SO. WE EXPECT THEM TO WALK AWAY QUITE HAPPY. SONIA, YOU HAD YOUR HAND RAISED A LITTLE EARLIER. I DID. I WANTED TO CLARIFY THAT THE THE CURRENT WHEN YOU GO TO TRADE SHOWS RIGHT NOW AND YOU GO TO ALL THESE ARE THOSE BEING RUN THROUGH THE ROASTERY LLC AND WILL THEY CONTINUE TO BE RUN THROUGH THE ROASTERY LLC? POP UPS ARE RUN THROUGH FUNCTION NORTH LAKE, LLC. SO THE. SO CATERING ANYTHING, ANYTHING RIGHT NOW THAT IS MORE CONSUMER FACING. CUSTOMER FACING IS FUNCTION NORTH LAKE LLC. ANYTHING ON THE ROASTERY SIDE IS THE FUNCTION COFFEE CO LLC. SO THAT WAS THE FIRST BUSINESS THAT WAS INCORPORATED AS AN LLC. 
          AND THEN BECAUSE WE HAD THIS LOCATION FOR TAX PURPOSES, WE THOUGHT BIFURCATING THE BUSINESS INTO TWO LLCS WOULD MAKE THE MOST SENSE FOR OUR CPA. AND THEN IF WE EXPAND INTO OTHER CITIES, IT WOULD BE, YOU KNOW, FUNCTION, ROANOKE LLC, FUNCTION, DECATUR LLC, WHATEVER IT HAPPENS TO BE. THE ONLY CONCERN WITH THAT IS THAT THAT MEANS THAT THE MOST, THE MAJORITY OF THE TAX IS GOING THROUGH THE 15,000 GRANT VERSUS THE 20,000 GRANTS. UNTIL WE'RE ABLE TO DO THE EVENTS. YES, YES. RIGHT NOW, THE MAJORITY OF THE THE RETAIL IS GOING THROUGH THE FUNCTION 100% RIGHT NOW IS GOING THROUGH THE FUNCTION NORTH LAKE. RIGHT. THAT'S RIGHT. 
          AND BUT IT DOESN'T HAVE A CONTINGENCY ATTACHED TO IT. THE OTHER ONE HAS A CONTINGENCY OF WE'RE NOT GOING TO GET THE MONEY IF WE DON'T MOVE HERE. TECHNICALLY THEY BOTH HAVE THE SAME CO CONTINGENCY BECAUSE THE GRANT DOESN'T GRANT DOESN'T GO THROUGH TILL THE CO CONTINGENCY. 
          SO BUT THE PLAN WOULD BE IS IS STILL THE PLAN WOULD BE THAT MOST OF THAT RETAIL IS STILL GOING TO GO THROUGH THE FUNCTION NORTH LAKE. THE RETAIL THAT WOULD GO THROUGH THE FUNCTION COFFEE WOULD BE ANY RETAIL THAT YOU SELL OUT OF THE STORE AND THE E-COMMERCE. RIGHT? OKAY. RIGHT. AND THE CLASSES AND TOURS AND THINGS. BECAUSE THAT'S, THAT'S WHERE IT GETS CONFUSING FOR US BECAUSE IT'S STILL ALL MIXED TOGETHER INTO ONE GRANT AND IT REALLY NEEDS TO BE TWO SEPARATE GRANTS. AND SO WE CAN, WE CAN WHEN WE GO AND WE START EVALUATING THE TAX BENEFITS TO THE COMMITTEES, WE CAN REALLY SEE WHAT RETAIL IS COMING IN ON ONE SIDE AND WHAT RETAIL IS COMING IN ON THE OTHER SIDE. SO IT'S JUST I JUST WANT TO MAKE SURE THAT WAS MY CLARIFICATION. AND THEY ARE TWO GRANTS. RIGHT? YEAH. I MEAN THEY'RE PHASE GRANTS THAT COULD BE WITHIN ONE AGREEMENT, COULD BE SEPARATE AGREEMENTS BECAUSE THE FUNCTION NORTHLINK LLC, CAFE CEO IS HAPPENING POSTHASTE. THE FUNCTION COFFEE CO, LLC IS CONTINGENT ON THE 18 TO 36 MONTH MOVE AND CO. WE JUST HAVE ONE APPLICATION PACKET THAT'S COMBINED STILL. SO THAT'S WHY I'M ASKING FOR CLARIFICATION. I DIDN'T KNOW THAT THEY NEEDED TO BE SEPARATE. I'M HAPPY TO SUBMIT TWO SEPARATE ONES. NO IT DOESN'T NEED TO BE SEPARATE BECAUSE IT'S PHASED. IS THAT RIGHT? YES. WHICHEVER WAY IT NEEDS TO BE SUBMITTED IS, YOU KNOW, CLERICAL. I'M HAPPY TO I THINK I THINK ALSO IT'S A WAY OF HAVING IT SPLIT IN PHASED LIKE THIS IS BECAUSE WE UNDERSTAND THAT IT'S A BIG INVESTMENT FROM YOU ALL TO BELIEVE IN US. WE BELIEVE IN OURSELVES. AND WE'VE DONE THEM, YOU KNOW, AND WE'RE EXCITED ABOUT THIS. BUT IT'S ALSO AN OPPORTUNITY FOR US TO PROVE TO Y'ALL THAT WE'RE SERIOUS AND WE'RE GOING TO MAKE IT HAPPEN. 
          [00:40:05]
AND SO BY SAYING, YEAH, WE I MEAN TO START A BRAND NEW BUSINESS AND, AND BE COMMITTING TO BRING A SECOND PIECE OF THE BUSINESS BACK TO NORTH LAKE, THAT'S A HUGE FINANCIAL COMMITMENT. OUR, OUR HOUSE THAT WE OWN RIGHT NOW, THAT'S FINANCIALLY THE SMART THING FOR US TO DO IS JUST STAY THERE. BUT WE WOULD LIKE TO MOVE IT BACK TO NORTH LAKE. AND SO THAT'S A BIG ASK OF US TO STEP UP AND BE ABLE TO PROVE IT TO Y'ALL, THAT WE'RE GOING TO MAKE IT HAPPEN. AND IF WE PUT IT ON PAPER AND WE WANT, WE WANT TO PROVE OURSELVES TO YOU. AND WE'D LOVE THE OPPORTUNITY TO DO THAT ON THE ROASTERY. I MEAN, IT'S THIS YEAR, 100 TO 250 IN TOTAL REVENUE, YEAR ONE DOUBLING IN YEAR TWO AND THREE. I REMEMBER YOU TALKING ABOUT HAVING SOME WHITE LABEL ROASTING AND SOME COMPANIES THAT REACHED OUT WHERE IT WOULD JUST SHUT YOU DOWN. YOU KNOW, OBVIOUSLY NO ONE WANTS TO DO THAT, RIGHT? YOU DON'T PUT ALL YOUR EGGS IN ONE BASKET. SO ARE YOU CONSERVATIVE ON THAT ROASTING PART OF IT? BECAUSE I FEEL LIKE THE ROASTING OPERATION HAS POTENTIAL TO GROW JUST AS QUICKLY. I WANT TO KNOW WHERE YOUR THOUGHTS ARE ON THAT AND WHAT THAT LOOKS LIKE. I DON'T KNOW, ADDITIONAL ROASTING MACHINES COST TO BE ABLE TO TAKE ON THAT ADDITIONAL BUSINESS IF IT DOES WELL, CAN YOU TALK ABOUT THAT AS FAR AS THE ROASTING OPERATION GOES, IT ACTUALLY HAS THE POTENTIAL TO DO BETTER THAN ANY CAFE THAT WE HAVE BECAUSE THE NET IS WIDER AND THE WHO WE CAN SERVICE IS WIDER. FOR EXAMPLE, THE WHOLESALE SITUATION THAT I MENTIONED EARLIER AND YOU BROUGHT BACK UP THIS GUY WANTED 250 BAGS OF EACH OF OUR SEVEN ROASTS, AND WE HAD TO TURN IT DOWN BECAUSE WE LITERALLY COULDN'T FULFILL IT, GIVEN THE SMALL ROASTER THAT WE HAD AT THE TIME. WE GET INBOUND ASKS WEEKLY ABOUT WHOLESALE ALL THE TIME, AND WE HAVE TO GET ANOTHER ROASTER TO FULFILL THESE THINGS. A NEW ROASTER THAT'S CALLED A FULL STACK ROASTER FROM THIS COMPANY IS $27,000. SO THAT WOULD THAT WOULD BE PART OF WHAT THE GRANT GOES TOWARDS. YEAH. EVERY, EVERY COFFEE COMPANY THAT DOESN'T ROAST EVERY COFFEE SHOP, THAT DOESN'T ROAST THEIR OWN COFFEE, WHICH IS MOST COFFEE SHOPS ARE BUYING BEANS FROM SOMEWHERE, YOU KNOW, TEN STAR. THEY BUY THE TRAILER THAT PARKS IN PECAN SQUARE. THEY BUY THEIR BEANS FROM A LOCAL ROASTER IN GRAPEVINE THAT HAS OUR SAME EXACT MACHINE. HILLTOP WILL BE ORDERING THEIR BEANS FROM A LOCAL ROASTER OR SHIPPING IT FROM SOMEWHERE ELSE. SO WE, YOU KNOW, IN THIS PROCESS, WE CAN'T I CAN'T START REACHING OUT TO LOCAL COFFEE SHOPS AND TRAILERS AND THESE CUTE LITTLE POP UPS RUN BY ONE GIRL AT, YOU KNOW, IN HER DRIVEWAY OR WHATEVER ALL OVER DFW. I CAN'T START REACHING OUT TO THEM UNTIL WE CAN FULFILL THOSE ORDERS. SO WE JUST RECEIVED OUR EXTENDER, WHICH IS GOING TO ALLOW FOR US TO ROAST 44 KILOS, 44 POUNDS, POUNDS, 44 POUNDS OF BEANS AT A TIME. SO I'M SO EXCITED TO GET THAT UP AND GOING. HOPEFULLY WE'RE GETTING IT CONNECTED. IT WEIGHS LIKE 500 POUNDS, SO WE'VE GOT TO GET THAT CONNECTED ONTO OUR EXISTING ROASTER. IT EXTENDS UP TOP. THAT'S HOPEFULLY HAPPENING NEXT WEEK AND THEN WE CAN START REACHING OUT. BUT REALLY THE BIG BUSINESS, THE BIG COMPANY IS THE THE ROASTERY AND IT'S GOING TO DO A LOT MORE VOLUME THAN JUST ONE COFFEE SHOP. AND ONE THING THAT, YOU KNOW, SALES TO LOCAL SHOPS SAY, WE SAY IN THE NEXT YEAR OR A YEAR TO TWO YEARS, WE CAN GET 5 TO 7 OTHER COFFEE SHOPS THAT WE ARE PROVIDING 500 POUNDS OF BEANS A WEEK TO. WOULD THAT BE LOCAL SALES TAX TO NORTHLAKE? BECAUSE THEY'RE BUYING IT FROM BUYING IT FROM NORTHLAKE, RIGHT. THEY'RE BUYING IT FROM NORTHLAKE. SO THAT WOULD BE SALES TAX. YOU KNOW, IF WE CAN GET TWO MORE SHOPS, TWO EVEN TWO MORE SHOPS AT 500 POUNDS OF BEANS A WEEK WOULD BE A LOT OF SALES TAX GOING INTO THAT NORTHLAKE BUSINESS. SO IS THAT YOUR NEXT 1,500 POUNDS A WEEK? NO. RIGHT NOW. RIGHT NOW IT'S ONE KILO BATCHES PER ROAST. SO I'VE BEEN ON MY ZOOM CALLS ROASTING BEHIND ME AND THEN CHANGING IT OUT AND THEN CHANGING IT OUT FOR ALL DAY, EVERY DAY. THE NEW ADD ON THAT WE'RE GETTING THAT IS HERE IS 44 POUNDS AT A TIME. AND HOW LONG DOES THAT TAKE FOR LAKE CITY? JUST ONE ROAST, 2.5 HOURS. 
          OKAY. AND SO 44 POUNDS. SO YOU CAN YOU CAN COVER YOU CAN COVER A CAFE, A CAFE, ESPRESSO IN TWO OUT, 2.5 HOURS, LIKE WHAT THEY WOULD NEED FOR A WEEK. SO IS YOUR PLAN LIKE AS YOU GROW OR 
          [00:45:04]
YOUR PROJECTED GROWTH AND YOU'RE LOOKING AT INCREASING THE NUMBER OF CAFES THAT YOU HAVE, IS YOUR PLAN TO OPEN ADDITIONAL ROASTERIES OR JUST TRY AND EXPAND ON ON THE FACILITY THAT YOU'VE GOT AND PUT MORE ROASTERS IN MORE ROASTERS, ONE FACILITY, FOR SURE. IT'S KIND OF LIKE GOING FROM A HOME, YOU KNOW, BATCH BEER, LIKE MAKING A, A SMALL BATCH BREW AT HOME TO LIKE EXPANDING YOUR BREWERY. THE BEAUTIFUL THING ABOUT THE ROASTER THAT WE CHOSE, ASIDE FROM BEING ALL ELECTRIC AND VENTLESS, IS THAT IT HAS A PRETTY SMALL FOOTPRINT. IT'S THE SIZE OF A FRIDGE. IT'S NOT THE TRADITIONAL GAS ROASTER THAT TAKES UP HALF THE ROOM AND HAS ALL THESE EXHAUSTS AND EVERYTHING, SO YOU CAN LITERALLY LINE THEM UP. LIKE IF YOU IF YOU WERE TO GO TO LIKE LOWE'S AND SEE LIKE FOUR FRIDGES IN A ROW, YOU CAN HAVE ALL OF THEM RUNNING AT ONCE AND YOU JUST PROGRAM THEM ALL DUMP IN THE BEANS. AND IT IS, IT'S, IT'S A PRETTY, IT'S A PRETTY. IT DISRUPTED THE MARKET FOR ROASTERIES AND THAT SORT OF TECHNOLOGY. I'M A BIG TECH GUY AND ALL THAT STUFF. IT'S LIKE, IT'S VERY EXCITING AND IT KEEPS US IT KEEPS US ABLE TO SCALE WITHOUT TAKING UP ADDITIONAL FOOTPRINT. ASIDE FROM JUST A BOX, TONY ACTUALLY HAS BECOME A LITTLE BIT OF AN INFLUENCER FOR THAT ROAST FOR BELLWETHER, WHO BUILDS THE ROASTING MACHINE, AND THEY HAVE A CALL TOMORROW ABOUT, YOU KNOW, THEY'RE COMING TO TOWN IN OCTOBER. DALLAS COFFEE FEST IS GOING TO BE HELD IN FORT WORTH, AND THEY'RE GOING TO HAVE ME AT THE BOOTH. HOW MANY OF THOSE DO YOU HAVE? TWO. RIGHT NOW WE HAVE ONE AND WE JUST ADDED THE THE EXTENDER THAT MAKES IT THE FULL SIZE UNIT NOW. AND THEN IF WE GET ANOTHER ONE OF THOSE, THAT'S ANOTHER 27 GRAND. IS THAT A FAIR STATEMENT TO SAY THAT Y'ALL REALLY DON'T KNOW WHERE YOUR ROASTERY IS GOING TO END UP, BECAUSE YOU'RE LOOKING AT HILLTOP AND YOU'RE LOOKING AT NORTHLAKE, TEXAS BUSINESS PARK. 
          YOU DON'T REALLY KNOW WHERE YOU'RE GOING TO BE. YOU JUST KNOW THAT YOU EVENTUALLY WANT TO MOVE. BUT THEN THERE'S ALWAYS THE CASE WHERE YOU MAY END UP STAYING ADJUSTED DUE TO WHATEVER IS THAT. WE NEVER CONSIDERED HILLTOP FOR ROASTING. IT WAS IT WAS TEXAS BUSINESS PARK OR SOMEWHERE IN NORTH LAKE. OKAY, SORRY. LAST MEETING YOU SAID HILLTOP. SO I THOUGHT THAT'S WHAT WE DID. OUR WE DID POP UPS. WE DID POP UPS. THAT'S WHERE WE STARTED. THAT'S SELLING OUR DRINKS AT THE MARKET. BUT WE WOULD BECAUSE THEY HAVE THE COFFEE DRIVE THROUGH, WE WOULDN'T WE WOULDN'T HAVE OUR ROASTING FACILITY AT HILLTOP. YEAH. AS SOON AS THEY AS SOON AS THEY ANNOUNCED THAT FAT COW WAS GOING TO BE GOING INTO THAT SPACE AND THEY WERE GOING INTO BUSINESS TOGETHER, WE WERE LIKE, WE DON'T WANT TO BE SELLING DRINKS IN YOUR FRONT YARD. WE WANT TO BE RESPECTFUL. AND, AND, YOU KNOW, THEIR ORIGINAL PLAN WAS TO OPEN THAT IN OCTOBER. SO I THINK IT WAS WHEN THEY MADE THAT ANNOUNCEMENT BACK IN AUGUST, WE PULLED OUT OF THE MARKET AND WE JUST STOPPED DOING THEM BECAUSE WE WANTED TO BE RESPECTFUL OF THEM. BUILDING THEIR BRAND. BUT TEXAS BUSINESS PARKS WOULD BE GREAT. BUT NORTH LAKE IS THE GOAL. AND TO YOUR POINT, IF THAT DOESN'T HAPPEN, WE DON'T GET THE GRANT. SO IN A PERFECT WORLD, IT'S NORTH LAKE. IN A REALISTIC WORLD, IT MAY NOT HAPPEN, BUT THEN WE DON'T GET THE GRANT. THOSE ARE THE THAT'S THOSE ARE THE TWO OPTIONS. NATHAN IS NORTH LAKE, TEXAS BUSINESS PARK IN ETJ STILL OR IS IT BEING ANNEX? IT'S CURRENTLY ANNEXED OR IS IT GOING TO BE ANNEXED? IT'S CURRENTLY ANNEXED. IT'S IN THE. BUT WE ORIGINALLY WERE GOING TO TRY TO GET INTO PECAN PLAZA, BUT THEN THIS. THEN, YOU KNOW, THINGS CHANGE ALL THE TIME BECAUSE WHEN WE FIRST REACHED OUT LOOKING FOR SPACE, NORTH LAKE COMMONS WAS FULL, BUT A BARBERSHOP BACKED OUT OF THERE. THEY NEVER SIGNED THEIR LEASE THAT THEY WERE SENT. AND SO THEY CALLED US AND THEY'RE LIKE, IF YOU WANT IT, YOU HAVE TO MAKE A DECISION TODAY. AND WE WERE UP AGAINST A DIFFERENT COFFEE SHOP FOR THE SPLIT OF THE PHARMACY. AND BECAUSE WE HAD COMMUNITY ROUTES AND BECAUSE WE ALREADY HAD SALES. ET CETERA, ET CETERA. THEY WENT WITH US. IT WAS A FRANCHISE COFFEE SHOP THAT WAS GOING TO GO INTO COMPETING WITH US. GIVE ME A CARAMEL MACCHIATO. WE DID IT. WE CALLED IT THE GOLDEN HOUR. OKAY, NEXT. WE WOULD HAVE COFFEE. YOU HAVE YOUR FREE DRINKS? YEAH. YOU CAN COME IN AT ANY. DON'T HAVE ANY OTHER 
          [00:50:02]
QUESTIONS OR COMMENTS? THANK YOU ALL. WE APPRECIATE YOU COMING BACK. HAPPY TO THANK YOU FOR HAVING US AGAIN. THANK YOU. THANK YOU. OKAY. IS IT THE SAME DRILL AS LAST TIME OR. OKAY. SO HANG AROUND. DETENTION IN THE HALL. THEY'RE GOOD. GOOD TIMES. TABLE SECTION. YOU'RE GOING? 
          [5. EXECUTIVE SESSION]
SURE. OKAY. EDC WILL MOVE TO EXECUTIVE SESSION. IT IS 6:52 P.M. CDC WILL MOVE TO EXECUTIVE SESSION. 6:52 P.M. INTERSECTION SECTION 551.087 ECONOMIC DEVELOPMENT. NEGOTIATION. UNDER SECTION 731 SO EDC WILL RECONVEE BACK INTO OPEN SESSION. 7:31 P.M. THE CDC WILL RECONVENE 
          [6. RECONVENE INTO OPEN SESSION]
INTO OPEN SESSION, AND WE NEED TO HAVE OTHER THINGS. ONE PUBLIC HEARING FOR GRANT PERFORMANCE AND THE COMPANY WILL OPEN THE PUBLIC HEARING AT 731. WE'LL OPEN THE CDC PUBLIC HEARING AT 7:31 P.M. JUST TO BE. YOU KNOW. CLOSE THE PUBLIC HEARING FOR SEO. 731. CLOSE CDC HEARING AT 7:32 P.M. ALL RIGHT. NEXT UP IS ITEM A2. CONSIDER APPROVAL OF PIONEER GRANT. 
          [4.A. VOTE]
MOTION. JUST WANT TO MAKE A MOTION. YOU HAVE YOUR 60S. ALL IN FAVOR? ANY OPPOSED? OKAY. 
          PETER OPPOSES. NO, NO, YOU DON'T SLOW. OH, YES. SO. AND THAT'S OKAY. THAT MOTION WAS FOR ALL THE PROVISIONS AS DISCUSSED IN EXECUTIVE. YES. MOTION PASSES. DO YOU HAVE A MOTION FOR CDC? I'LL MAKE A MOTION TO APPROVE. OKAY. I'LL SECOND THE MOTION WITH ALL THE PROVISIONS. ALL THOSE QUESTIONS DISCUSSED IN EXECUTIVE SESSION. ALL IN FAVOR? I OPPOSED. ANY OPPOSED? MOTION PASSES. OKAY. NEXT ITEM UP IS 97. ADJOURNED. WE WILL ADJOURN BY CONSENT. CDC WILL. BY
* This transcript was compiled from uncorrected Closed Captioning.