Master Plannning - Regular Meeting

Okay. Thank you. Okay. It is 01:38. I am going to call the Corpus Christi b corporation meeting to order. Would you please call the roll?

Yes. President Diana Summers. Here. Vice President Jesus Jimenez is absent. Secretary Mark Larue is absent. Victoria Holland? Here. Johnny Filipello is absent. Duke Cancillo? Here. Claudia Mostogashi?

Here.

Alright. A group of the board is present and to conduct the meeting.

Thank you. Alright. Next we have public comment. I believe we have one signed up for public comment.

Good afternoon. My name is Susie Saldana and I come before you today just simply to bring you some information. This type e board made an agreement with Padre Island North LLC on 08/27/2025 concerning their hotel with Reju where it would give a $2,000,000 incentive to them. As of 09/24/2026, commercial building permits issued on this hotel were in the total of $10,003,000 $300,000 which is different than the $34,000,000 they said that the hotel was gonna cost. That's the information they gave you.

Thus it was allegedly defrauding the city of Corpus Christi and taxpayers of hundreds of thousands of dollars worth of legally due permits and fees with one hand receiving public incentives worth $2,000,000. This is being turned over to the audit committee but we felt because you guys had given the incentive it was necessary for you to know because these things come before you all the time and I'm sure they keep you very busy and we appreciate what you do, but you need to know sometimes that they don't bring you the whole truth and therefore it is necessary for you to know. They bring all sorts of frauds and things over for other people but they don't look at what they're doing and this is important to you because it's important to the taxpayers. I want you to know how much I appreciate you taking your time to serve on committees like this. Thank you.

Is there anyone else who would like to make public comment? Seeing none, I'm going to move to item d, minutes and excused absences. I believe we have to approve the minutes before we can do the absence excuses. Okay. Thank you. Are there any corrections to the regular special meeting minutes. Seeing none I'll entertain a motion to approve the meeting minutes.

I motion. Is

there a second?

Second.

All those in favor say aye. Aye. Any opposed say no. The motion carries. Alright. We have one absence for miss Holland. Would you like to request an excuse? Yes. Thank you. Okay. I'll make a motion to approve the excuse for missus Holland's absence at both the regular meeting and the special meeting. Is that correct? Is of them?

Okay.

Is there a second? I second. All those in favor say aye. Aye. All those opposed? The motion carries. The next item on our agenda is the financial report. We have the type B financial report.

Think that a clicker is missing from here. Yeah. That's it. K. Sorry about that. Thank you madam president. Director of finance and procurement here. The item included in your agenda packet are the unaudited financial statements as of 03/31/2026. The financial statements include a balance sheet as well as an income statement. I do have a brief presentation here for you on budget to actuals.

And so jumping into slide number two, just a quick reminder, Corpus Christi B Corporation, the existing funding, the corporation is currently funded through a $1.08 cent sales tax, which was approved roughly, I believe it was 2018. And that specific sales tax is divvied up into three different funds. So 50 percent of the sales tax is dedicated to economic development. 500,000 of the remaining 50% is dedicated to housing programs. And then the remaining funds are used for street capital projects.

So starting with the first fund of this particular sales tax authorization, we have the Economic Development Fund. Here, a total of 4.7 was budgeted for the year for revenues. A total of $2,400,000 has been collected as of March 31. This leaves about $2,200,000 to be collected in sales tax for the remaining of the fiscal year, which ends September 30. Moving on over to the expenditures total expenditure row.

A total of $12,000,000 was budgeted for the fiscal year, with about $3,200,000 being spent as of March 31. This leaves about 8,700,000 of appropriations pending to be spent. Majority of that is related to major business incentive projects, small business projects as well as a transfer over to the CIP Streets Fund, which you'll see here in an upcoming slide. If we jump down to the bottom line, on a budget basis, we're projecting to end the fiscal year with a $2,200,000 fund balance. As of March 31, your fund balance amounts to about 8,700,000 This slide here is just a forecast of funds available for commitments.

Again, this is just an estimate. We start with the beginning fund balance column, which is carried over from the previous slide. So starting on the first row for fiscal year twenty twenty six, we have a fund balance of $8,700,000 as of March. And the next column, overestimated annual revenues, we take your sales tax only revenue to keep this conservative, not we don't factor in investment earnings here. But keeping your budgeted sales tax revenue, we forecast that out for the remaining life of this sales authorization.

We then reduce that by year commitments from existing contracts. And then we estimate administration and other expenses based on the current year's budget. Overall, I would look at the last column here where you see the funds available for commitments. We anticipate the year 10 about $4,000,000 And this fund balance continues to grow until the Board elects to add more contracts and commitments to this fund. This slide here is just a recap of all the economic development projects that have been approved by the board.

A total of 8,900,000 has been approved for the life of this sales tax authorization. We next have a slide that covers the administration and other operating expenditures costs. On average, the administration cost for this fund is about $471,000 And in 2026, it's a higher number because we do include another expense in there, which is a transfer over to the CIP fund of 1,700,000. And this is the CIP fund, which is being funded from the Type B Economic Development Fund. We have total 4,900,000 budgeted for improvements to the Elizabeth Street on Santa Fe And Staples.

A total of 346,000 has been spent as of March with encumbrances of 232,000. This still leaves about 4,300,000 pending to be spent. This slide is a recap of your housing fund. A total of 575,000 is budgeted for this fund. All revenues for sales tax have been earned as of March. We have a little $10,000 shortfall of just investment earnings, will definitely be earned between now and and the end of the fiscal year. A total of 1,000,000 thousand

$7,376

were budgeted for total expenditures with actuals coming in at $35,000 as of March. This leaves unspent funds of 1,000,000 This is related to a commitment we'll show you in the next slide. Overall, we plan for the fiscal year to end with a fund balance of about 2,000,000. As of March 31, your fund balance is about 3,000,000. And as mentioned before, the commitment here for the million is related to Palms At Morris for that housing project.

Next, have the Street Streets Arterium Collector Fund. A total of 4,000,000 is budgeted for this fund of revenues. As of March 31, 1,800,000 has been collected, leaving about $2,200,000 to be earned. Expenditures were budgeted at $4,100,000 with about $2,000,000 spent as of March. This leaves about $2,000,000 be spent.

And that's mostly over the funds being transferred over to the Streets Project Fund for this specific funding. If we jump down to the bottom line, we anticipate the fiscal year to end with a fund balance of about $35,000 on a budget basis. Right now, our actuals show a slight overdrawn on the 126,000, which we'll true up at year end. We can only transfer over what we've collected. So we'll true this up here once we get to the fiscal year end.

And so this is a snapshot of your Street fund, Street CIP fund. A total of 16,300,000 is budgeted in that fund, with 4,600,000 spent as of March 31. There are encumbrances or commitments of 4,000,000. This leaves about 7,600,000 pending to be spent or committed. Okay.

Now we jump into the new sales tax, new type B tax fund. This is consists of two $1.08 cent sales tax allocations. And the first $1.08 cent sales tax is broken into two parts. It's 50% goes to recreational and community facilities, and 50% goes to arterial and collector streets. And then we have another one east in sales tax that goes a 100% to the downtowns downtown Seawall and citywide flood control fund.

So starting with the facilities fund, the recreational communities facilities fund, a total 4,500,000 has been budgeted. We'll see those actuals come in here in the month of June 2026. Total of $78,000 was budgeted for expenditures, with about $39,000 being spent on professional service and administration and other services. Majority of the funds collected this fiscal year will run into fund balance, which we anticipate to be roughly $4,500,000 Next, have the new Type B Streets Fund, which is for arterial and collector streets. Same thing here, dollars 4,500,000 is expected in revenues.

Those will start coming in here in the month of June. Total of $4,644 is budgeted for administrative services with 2,000 spent year to date. And we anticipate this fund to end the fiscal year with about 4,500,000 fund balance. Lastly, we have the seawall citywide flood control fund. We anticipate, again here, 4,500,000 to come in starting here in June. 52,000 was budgeted in expenditures with 26,000 already spent. We anticipate the year '10 with a fund balance of 4,400,000 for the fiscal year. Okay. This should be the last slide. It's a comparison of budget to actuals for sales tax revenue.

A total of 4,500,000 was collected was budgeted for sales tax revenue. A total of 4,600,000 was collected. This puts us $134,561 of ahead of budget, actuals ahead of budget. And we compare that to last year's actuals, we're 134,561 ahead of last year's actuals. Those numbers are the same because we did use last year's actuals to build the 2026 budget. And so that should be it. And I'll stand by for any questions.

Thank you very much.

Thank you much. Your

last point actually brought up a question for me. In slide four, you don't show any growth in the estimated annual revenue year over year when you're looking out from 2027 to 2023. Do we ever go back and look at historical growth to try and estimate?

What we'll do for sure is on the 2027 budget during the budget process we'll update that projection so they can line up with your 2023 I'm sorry 2027 budget. We do keep those flat moving forward since it goes out so far because sales taxes can be volatile, and it can be volatile in favor of the corporation and can also work against the corporation. So keeping it flat is safe, but we can always build in the least one to 2% growth, but to be conservative I would probably keep it flat or not go higher than 1%.

Okay. Yeah, I don't think we want to push that to an extreme number but it would be good to see that what's happening here we're looking at hopeful growth.

Yeah, if we go back and try to look at prior year averages it's a little skewed with COVID because there was so much federal stimulus coming in so you saw that double digit growth in sales tax. So we would have to kind of strip some of those years out to kind of come with a nice projection.

Okay. Thank you. Are there any other questions? Okay. Seeing none.

Thank you.

That concludes the report. Alright. Next on our agenda we have item f, our executive session item. The board will go into executive session on item three per Texas code section five five one zero seven one five five one zero seven two and five five one zero eight seven. We will return.

Alright, are we ready? Alright. Moving on to section g agenda items. Item number four is the resolution reaffirming the Corpus Christi B Corporations investment policy and investment strategies for fiscal year 2026 to 2027 with non substantive amendments. I believe we should have a staff presentation.

Thank you madam president. Sergei Aviosa, director of finance and procurement. The public funds investment act requires that we bring forth the investment policy and investment strategy to the board annually for review and approval. There are no changes to this policy this year, so staff has just recommended approval and reaffirming the existing policy. And I can stand by for any questions.

Thank you. Is there any questions from the board? Alright. Seeing none, I'm going to open for a public hearing on the item. Is there any public comment? Miss Huerta, did you receive any public comment on this item? No, ma'am. Okay. With that I'm going to close the public hearing and I will entertain a motion. Is there a motion? Motion to approve. Is there a second?

I'll second.

Any discussion? Alright. All those in favor say aye. Aye. All those in favor say or oppose say no. The motion carries. Alright. Next is item number five. The motion approving an amendment to the Corpus Christi B Corporations fiscal year 2025 to 2026 operating budget.

Good afternoon. Jennifer Buxton with planning and economic development. We're bringing forth a type b budget amendment. The funding overview, our total requested funding is $2,200,000. The fund is the type b facilities, eleven fifty.

We are requesting a transfer of 2.2 into the capital budget to support critical capital improvements, address aging infrastructure in c district facilities, planning for Hilliard Center complex redevelopment. The projects supported include the Hilliard Center complex, Art Museum of South Texas, Harbor Playhouse, and Museum of Science and History. For the art museum HVAC system improvements, and I would like to recognize that Sarah Morgan from the Art Museum is here. Funding requested is $939,500. It's to install standalone HVAC chiller systems.

It will decouple the HVAC system from the Hilliard Center cooling plant. It includes both the Johnson And Lagareta Building. She told me and I messed it up. Upgrades to the mechanical, electrical, and control systems, and the requested funding is based on 90% OPCC. The Harbor Playhouse improvements, the funding requested is $700,000 for exterior and interior facility improvements, building envelope and windstorm mitigation, ADA, and structural upgrades, install standalone HVAC system.

It'll decouple it from the Hilliard cooling plant, and the requested funding is based on the latest OPCC. The Museum of Science and History Improvements, the requested funding is $155,000. It'll address building envelope and structural repairs. It will address ADA and life safety improvements, roof drainage and fire alarm upgrades. It supports long term facility operations, and the requested funding is for construction. So, our action requested is to approve the budget amendment of $2,200,000, approve the transfer for 2.2 to the capital budget, and to support priority cultural facility improvements. And that's the presentation.

Thank you. Are there any questions from the board? I have one. Your presentation was showing a total request of 2,200,000. Our items shows total 2,700,000.

Give me just a

second. Absolutely. Good

afternoon. Amy Kelly Rodriguez, director of management and budget. The total 2.7 is the amount of revenue that we are reducing the budget by because that will be received in in the type a funds. So, that total is the revenue that will not be received in the new type b funds but will be received in the old type a funds. And that amendment will come to you at the next meeting.

Okay. So what we are approving is the transfer of just shy of 1,800,000 for these three projects.

Yes.

Okay. So we're off of this this item says we're authorizing the transfer of 1,794,000 to the capital budget in support of existing capital improvement programs which totals the three that you outlined. The total

it's to reduce the revenues collected in the type b facilities totaling 2.7, authorizing the transfer of 1.7945 to the capital budget.

Just the way it's written. There's three different numbers at this point.

Am I correct to think Pardon

me.

Go ahead. I correct to think that within this agenda item there are four things that we are were being looked to for approval? One being the reduction of revenue from the type b fund to the type a fund from the facilities fund. Another being the transfer of roughly 1,800,000 to the CIP. The third being, another reduced revenue of roughly, 2,700,000, this time from the streets fund to the type a fund.

And then lastly, to and then lastly, an additional redirect of nearly $800,000 from the seawall and flood control. Are are these the four things being requested of us here just just for clarity's sake?

Yes. There are four. I don't know that redirect is correct for the almost $800,000, though, to reduce revenues.

So that one because I when when earlier it was mentioned redirect for reduced revenue, that's why could you clarify that last 800,000 so we understand what we're voting on there? And I think maybe we'll we'll get it.

Yes, ma'am. So, the reduction in revenue for all three funds is based on the effective date of the new sales tax authorization. So with this state, it was agreed upon that the effective date of the new authorization would begin with sales the sales tax collected April 1. That April 1 sales tax collected would be received by the city in May. And so we're correcting or rightsizing the revenue budget in the type b fund and the type a funds to account for that.

Because when we adopted the f y twenty six budget originally, we had assumed six months of revenue collection. It didn't account for that timing difference. It's that one month that will be collected in the type a fund.

So just for the sake of this, are we phrasing this as a re I I understand reduction of revenue is how it's phrased here, but could this be better understood to be a redirection of revenue, a transfer of monies existing in accounts, or a correction to or an amendment to the budget? It is a correction.

To the budget. We don't have to amend the revenue budget to collect less revenue, but that's what we're going to collect is less because of the effective date that that the state established. And because we're increasing the amount we anticipate collecting

reduction in the type b fund to balance that out because it's realistic and a better picture of what's actually going to happen. So we're not actually moving funds around at this point. We are instead

wanted amending the budget to show the existing reallocation of funds.

We're amending the budget to properly reflect what will actually happen.

Okay. Thank you. I that clears things up for me. Okay. So, we have

the accounting side of this and then the approved the request for the 1,800,000 in the expenditures for the three items. We've spent quite a bit in HVAC decoupling. Is this the end of it decoupling all of these ACs?

Well, this is for the art museum, the Museum of Science and History in the Harbor Playhouse. They are the Harbor Playhouse is at 100% submission. The Museum of Science and History is at 100% design, and the Art Museum is at 100% design. So those OPCCs should be at 100% or fairly close, almost at 100% and ready to go out for bid. And so, we'll see how the bids come back.

Okay. And so, with the approval of this item, I mean, I know in the past when we've discussed these AC decoupling projects, the lead times on these ACs is quite long. Correct?

Let me see if Jeff Edmonds is still

here. Okay. Man of the hour.

Well, I don't have the exact answer on that one, but they they typically are kind of long. Okay. So, there's after COVID, it was you know, you're a year and a half out from getting the equipment. I think things have improved some since then. These are smaller units than like we had for the arena, but yeah, they tend to be long lead items.

Okay. And what's the average life of these AC systems? When we actually decouple these, I would imagine it's less demand on the units?

Yeah, I would say twenty five years maybe.

Okay. So, this is a long term investment that can be maintained and will improve the demand on the current unit?

Correct. So, all of these three facilities are going off of the chilled water plant at the Convention Center.

And when was that done?

I believe that system is thirty plus years.

Okay. So, we're at the end of its useful life, is what you're

Yes.

And I'm thrilled to see the improvements to the Harbor Playhouse, by the way. I know that's a very loved asset and highly utilized. Thank you. Is there any other questions?

How much are we invested already in total?

Like before these? Into which specific project?

For the ACs.

For all of the ACs? So for the art museum, total project costs with this change, this would bring us up to $9,000,000. Construction and rehab at 7.5. There's about a million dollars into engineering, rental expenses. There's less than 200,000, less than a $120,000 for contingency, and about $333,000 for design for a total of $9,000,000, and that's for the art museum HVAC improvements.

For the Harbor Playhouse, build, this is building and HVAC improvements. With this amendment, we'd be at about, $6,500,000, but again, that includes other improvements than just the HVAC system.

And, the amount that you guys are asking, you said that you're barely going to get the bids on it, so we don't know that that's going to be what you're going to need?

No. The design is complete. The OPCC is either complete or substantially complete. And the next step will be to go out to bid.

Are there any other questions? Does that satisfy? Okay.

And if if I can get to your question, in order to go out to bid, we have to have the funding aligned based on the OPCC.

Right. So, if the bid you're expecting the bid to come close to what you're asking?

Jeff. But, yes, that's the purpose of design in the OPCC is to set the

So, has it that been in the past? That it mostly

They can vary. For different reasons, they can vary.

Okay. Do we review that after we were like, let's say we say yes to that and then it's less, Can that get adjusted? Do you

wanna speak to that? So

so there's two ways to do this. You can wait until you've got bids in hand, but if there's a significant gap between the OPCC, What they're wanting to do is close that gap before we go to bid on these. So if the bids come in under budget, you won't see anything else. And then when the project's concluded, any remaining funds will, what we call, fall to fund balance. So it'll go back to the the balance of whatever fund it comes from.

And these these amendments are an expansion of the scope that was previously approved. Correct? The scope of work on these three units.

I'm not sure that it's an expansion of the scope so much as it reflects current conditions for the OPCC and design.

So think about this. The every one of these projects involves a lot of facility modifications as well. Because for for those of you that haven't dealt with this, the the way the system was designed with the convention center, it had central chilling plant there, central cooling towers, and there was a chilled water loop that went to the art museum, the Harbor Playhouse, the science and history museum. And there used to be a chilled water storage tank over there. Some of you all probably remember that.

The tank that sat there said C District on it. And that was designed for an era where you had time of use rates on the electricity. So we've taken that out because you don't have time of use rates anymore. You've got the central chilling plant is very aged, the plumbing, both inside the facilities and distributing the chilled water all around through that complex, is old. And so the system is pretty much fully depreciated.

So this has been a long term project to put independent chillers at each of these locations and get them off of the convention center. We're also gonna be replacing the HVAC system at the convention center in a future project.

Okay. Does that answer your questions? Okay. Perfect. Alright. Are there any other questions from the board?

For the sake of clarity, would it be possible for us to split this into two different motions? One could one that motion to authorize the transfer to the capital budget, for the C District and then a different one, that reflects the changes to the operating budget just so that we we have clarity on what we're approving. Because if I think if it's confusing to us to read, it could be confusing to a taxpayer to understand exactly what we've approved. And if we separate them out into two different motions, I think that could help.

Yeah. It's recommended that it remain one motion and one approval since it's one agenda item. We certainly don't want to confuse the public that we did something that was not on the agenda. So, all can reward it differently, but it's best to keep it one motion to reflect the one agenda item.

I'm trying to think of how that could be rewarded but yes, they would be tied together in the sense that we are approving the accounting of them and the expenditure. Do you have a recommendation?

At this point, my only recommendation could be to potentially reword it to add the authorizing transfer from the facilities fund to the end, but in this case, I think that might add needless complexity to what we're doing here. It would be my request that in the future where we have motions that effectively are doing different financial different things financially in operation where it kind of is more than one request that it would be separated out into more than one motion because again, I really would like to for us to maintain a lot of transparency and clarity.

Okay.

Alright. Well, is there oh, I need to now are we done with questions? Yes. Okay. Now, we're going to open this for a public hearing. Have we received any public comments on this item? No? Seeing none, I'm going to close the public hearing and entertain a motion for this item number five. Is there a motion?

Well, I asked the most questions about it and really put y'all under the fire, so I will be the one to put forth the motion to approve because I do feel like I understand what this is asking from us and I do think it's a good idea to approve this. I

will second. I think we're already well invested in it.

I believe we've had extensive discussion on the item. Is there any further? Seeing none. All those in favor say aye. Aye. All those opposed say no. The motion carries. Alright. Moving on to section h public hearing item number six. This is a public hearing and resolution authorizing the South Bay Park erosion and flood mitigation program with the city of Corpus Christi for a FEMA TDM grant match totaling $968,400.

Good afternoon, president and board members. Jonathan Atwood, interim assistant director of Parks and Recreation. And we have a presentation for you. So this is grant applications for South Bay Park erosion, and what we are requesting for today is a man a match for that grant. Let's see if I can make this work.

Alright. So Parks and Recreation is proposing to apply for a grant through the Federal Emergency Management Agency's Building Resilient Infrastructure in Communities or BRIC grant program. South Bay Park erosion mitigation project aligns with BRICS eligible areas of soil and slope stabilization and non localized flood risk reduction. Park infrastructure has exceeded its functional life, resulting in significant soil loss, structural displacement hazard ous cracking. You'll see that in a couple of slides.

If this request is approved, subsequent city council authorization is needed to meet the 06/01/2026 deadline for the grant application submittal to Tietam. So we'll be taking this to city council tomorrow pending this meeting. A little background is South Bay Park is located at 1013 Harbor Lights Drive in Council District 4. As you can see on the map, this is on the left on SPID before you cross over in Flower Bluff. Park was acquired in 1958. This is a five acre community park. It's actually a rather large community park. Obviously, one of older ones here in Corpus Christi. Park is maintained by Parks and Recreation. It has the following amenities.

We've got a number of amenities at this park, including basketball court, small baseball field, shaded playground, a concrete pavilion, a walking trail that goes all the way around the park, and benches and picnic tables. Here's a picture of some of the current conditions. Park features approximately 260 feet of shoreline along Oso Bay. In fact, this is a prime park looking out over Oso Bay. In the background, you have the college and then just the skyline with the bay in the back.

Existing shoreline protection was installed in mid nineteen nineties. This is a retaining wall constructed of state concrete bags, and that's exactly as it sounds. These are concrete bags that they drove PVC stakes through and then wet them down and stacked them in this shape to provide that structure along the shoreline. And then on top of it, they poured a reinforced concrete pad, which served as a viewing and fishing platform. Now with the collapse of the structure, you can see there's a chain link fence in the back of this photo.

That was put up to keep the public off of this, try to maintain a safe place so that, you know, public did not injure themselves walking out on there. This has resulted in significant soil loss around the structure that started eroding back into the park. It's kinda hard to see, but it's even eroding up around this fence that was placed there. And, ultimately will start eroding further into the park. The goal is to replace the failing infrastructure with a 50 foot wide nourished sand beach stabilized by 200 foot rock groins on either side, and then some structure along the beach there that will include ADA access with an ADA accessible ramp.

It's gonna repair some of the sidewalk, which ties into that walking trail along the back of this bulkhead or this revetment, and then create a nice transition between the beach and park protected by that concrete block revetment. In addition to the shoreline repairs, we currently have two existing storm drains that discharge into Osa Bay that come out under this park. The aged draining system will be demolished, replaced with a single modern system, basically tie these two together. They tie back to Sea Lane Drive, which is on the right side of this picture as you look at it, and will connect directly to that existing curb inlet. Improvements will ensure that the efficient runoff conveyance from adjacent neighborhoods while keeping shoreline the shoreline clear and protected from erosion.

So we're accomplishing two areas in one here, shoreline erosion and the drainage for this area. Here's project rendering. This does not show the ADA ramp, but what you can see here is that rock revetment along the shoreline that'll back up to the park. We're gonna be adding some of that soil to replace some of what has been eroded away. We will also have the groins that will extend out into Oso Bay to help protect the shoreline and the future beach that will be placed there.

It's my understanding. I believe there was a little bit of beach here before. Most of this damage did occur during during hurricane Hannah in 2020. A lot of our shorelines along the bayfront took substantial damage during hurricane Hannah. And this project was started in '22. Is that correct? Have to slip down. Right? You sat over there. In 2022, we started the design on this project, looking at this as one of the main areas we needed to address before it got worse. Moving on to projected funding costs. So the funding for this project is going to be shared between FEMA, or Tietam, and the city. So this is a reimbursable grant. 75% is reimbursable. We need to match that with 25%.

Recent opinion of probable cost construction was 2.6. The city of Corpus Christi's interdepartment services for this project would be about 295,000 for total construction cost of 2.9, almost 3,000,000. So what we are asking for here today is $968,400 so that we can submit this grant application with city council's approval tomorrow, hopefully. We'll submit that grant application on June 1. It will take a year, possibly a little bit longer, to hear back on this.

And so I know we've looked at financial reports, things like that. So we'll be asking for this funding, but it will be applied at a later date. So keep that in mind as you're planning out of the projects as well with this board. With tentative construction dates starting roughly April 2028, it could start beforehand. You know, they could approve this ahead of time and then move into construction beforehand, but that is the timeline we are looking at after speaking with Teetham and their representatives.

So Parks and Recreation is recommending approval to receive the matching grant funds from Corpus Christi b Corporation for the South Park erosion and flood mitigation project, and this project is shovel ready. So we completed that design. We actually received that design on May 2 with the OPCC. So this is a very fresh design, very fresh opinion of probable cost, and we'd like to move forward with it. So that's what I have for presentation.

This stopped working unless that's the end.

Thank you very much. Alright. Thank you for the presentation. Are there any questions from the board? I have a couple. My first is why is this project being brought to us and not coming from a different from the parks budget?

So parks does not have the operation funding to be able to support this grant match at this point in time. With the specifications of the type b under prop f, shoreline erosion control and flood mitigation

The new ones.

Correct.

Okay. And with the two, I believe you called them groins, the 100 Are foot those accessible? I mean, people gonna be able to fish off of those? Yes. Okay. And those will be the ADA compliant

So, the a Walkways? ADA compliant will be the sidewalk that is repaired up on the land side

Okay.

Down through the ADA accessible ramp to the beach. Okay. And so it's very difficult to make groins ADA accessible.

So I equate that because I don't know much about those similar to the break those that would fish off the breakwater downtown. Is that

And in in addition, we also have two navigational aid lights on the end of those groins for any boating traffic or people moving through the bay. Okay. Something else we did to continue is we did reach out to the neighborhood. We'd have a public outreach in the entire neighborhood is obviously in support of this project.

And so this will give a an additional public beach essentially that is does not currently exist. Correct. Right now, it's just a crumbling retention or wall. Correct. And now we're going to refurbish this. Can you go back to the expense slide?

And it's up here but I don't see it up there. There we go.

And Okay. So when I was looking at this, we have the opinion of probable construction costs, the city of Corpus Christi inter department services. What is that inter department services fee?

So inter department services fee will be our engineering and construction management fee. So, you know, as we move into construction, we'll work for the engineering department to gather that construction contract, move forward with construction management on it through the completion of this project.

Okay.

I'm sorry. Jeff. Yeah. Yeah. Then there's there's also funding in there for the contracts and procurement department handle bids and also the capital budget office.

Okay. So that but that covers we're not gonna get an engineering estimate in addition to this. This covers everything.

That that's the a little over half of that is my project's cost to to manage getting the thing through design and then manage construction.

And so our match is going to cover the up to the 25 match to include the interdepartment services fee? Correct. Okay. Are there any other questions on the item? I'm so sorry I have an additional one. Do you we did a different a similar type project off of Ocean Drive a year or two ago. Do we know what that funding was?

Talking about the Bay Bluff projects with with the shoreline erosion along the the parks along Ocean Drive?

I thought it was south.

Do you

remember which park it was?

A survey, an erosion survey, I believe.

Mhmm. Was there

So that should have been part of the Kepper project that's ongoing. In fact, we're getting ready to wrap up the feasibility study for that project, and then we would move forward with trying to apply for a KEPR grant to continue that project as well. And so that is almost complete as well. And it's a similar project, but that's a much smaller

Compared to this one?

Correct. Starting. Literally just a feasibility study. We're looking at this park to see what we need to do. This is already has been completed and we're already moved to construction on this project.

Okay. And what was the useful life age wise on the current the current flood wall that is just in disrepair?

Well, so this was built in the nineties.

Okay. So it's thirty thirty five years Coming

up 30 six years old. So and obviously, Hannah did a lot of this damage. Mhmm. The structure we're proposing to put in place would be much stronger. I believe much better engineered and should last longer period of time.

And what will the estimated useful life of the of this structure of these two groins that are being put in be?

So I would speak from the breakwater in front of marina is currently a 100 years old. Would I hope we would get seventy five years out of those groins without much of an issue. You know, barring any acts of God, you know, hurricane storms that would disrupt that.

Okay. Thank you.

I have a few questions.

Okay.

My first question could I could we go back to the slide that shows sort of a bird's eye view of the park? Am I correct in thinking that that upper left hand corner from where I'm looking at it is where parking is? Or where where is parking?

If you look on the right side on Sea Lane Drive, you'll see some cars parked along the curb there.

Okay.

That really is the current parking. This is a community park. Most people park along the curb around the perimeter of the park. And there is some space where people pull up. There's kind of a dirt patch area where people pull up hidden sometimes.

So we're gonna so what but what we're proposing to do is essentially create a new beach going out into Oso for the enjoyment of the public, but we have no parking for that, and the plan is for people to continue to use the residential street for parking.

These roads, these lanes up here are rather wide with the intention parking would be along the curve there. And previously, this was a fairly active area, fairly active park where people fished and and spent time out on this this breakwater before. So to your point, yes, there is minimal additional parking, but there is quite a bit of parking along that five acre park along the perimeter of it. If this project and I believe that it will be as successful as we're talking about. That is a large park, and I think in the future, we can look at adding additional parking to that without much of an issue.

Okay. I I have some concerns about but, you know, if if parks is already looking at that and the potential for more parking, that answers that question that I had. My other question, could you go back to the breakdown of costs? And I think this was addressed a bit earlier. But we we have here that the interdepartmental services, and and outside of that, we have the city's match Correct.

For funding is the but you're coming to us for both, the city match and the interdepartmental services. Is there Parks and Recreation, I understand, does not have the budget to set aside the total funding request, but is there a reason that we that they don't have the budget for the interdepartmental services aspect of this, or is that something I'm just trying to try to see why the total of this why the plan for that was to come from type b, or if there are other funding sources that you looked at.

So we do not have the operating budget to be able to cover the interdepartment service to answer that question.

Okay.

We're trying to take this as a whole package to go ahead and apply for the grant and move this project forward. The grant will not cover city staff time, those interdepartment services, so we are asking for that as basically an entire package so that we can wrap this up together and take it forward. And because its purpose is to oversee this project, whether it's the contracts procurement side, engineering, or construction management side of it, we just pulled it all together here.

So then that ask is to do to match the grant and to pay for the job?

Correct. For that total of 968, which would be the $6.72 and $2.95.

I had the same question that

you did. Thanks, Claudia. So just looking at this, so our the grant 75% match, just for clarity's sake, it does not include it's not 75% against the total funding request. It is 75 against the funding request minus the cost of the interdepartmental services. That is broken out there, but I think it needs to be said for transparency's sake.

And we're what is the timeline on this as far as getting that application in and the deadlines?

We're ready to submit the application. It it has to be submitted by June 1. We have everything prepared, pending the approval of funding today, council's approval tomorrow. We're planning to submit that by the end of the month at the latest.

And you said the funds needed to be held for this project. Does that again, just for the sake of transparency, does that mean you're looking for funds to be held in escrow, or are you looking for that simply to be part of our, you know, reviewed budget as we go through that we'll we'll note that those funds are there for that? Yeah. How how what are the the FEMA requirements, I guess, is what my actual question is as far as budget reserved and how do they wanna see that reflected?

So we have to show them that we have the funding for a match, the piece that we say. However, finance and budget would like to allocate that in the meantime. What I said before is keep that in mind that you will have this on the books as a project, but we're not looking at spending that money until end of twenty seven, you know, in beginning of twenty eight, basically, at that point.

Okay. So I guess my my question then would just be for our our budget department then as to specifically which budget we would be pulling and allocating this from just so that we're tracking it.

The way that the the grant funds would typically work is the department would submit the application. Once they receive notice of award, we would adopt the budget required for that cash match. And in the year that that's adopted, we would transfer those funds to our capital improvement project budget. So it would leave the type b fund and sit in the CIP fund, but it would depend on when the award is received. So I'm I'm not sure if that would be f y twenty seven, but that's what it looks like.

Okay. Thank you. Those are all my questions.

Thank you.

I I have a question. Yes. So, on the grant that you guys are gonna apply, do you have a limit of how much you ask? Like, the asking amount that you're gonna apply for the grant? Like, do they have a limit?

So, I believe they're yes. There are limits. I would need to confirm with Faye the exact amount. Faye Okay. Speak to that. But we're only asking for what we need for this project.

Okay. And on that grant, you're saying that you cannot add the 11%. So, the grant does not accept for you to Correct. To apply that. Okay. And then on that amount, on the 11% of the services that you guys are asking for, once you get these approved, you're gonna do bids for the job.

Correct. Then once we if awarded the the grant Uh-huh. We go out for construction bids.

Contract

bids. So that's, again, just an estimate of my what it might cost.

That is correct.

It's

still an estimate, but I I'd like you know, like I mentioned previously, this OPCC was as of May 2, so just a couple of weeks ago.

Okay. Are we going to be part of, like, looking at the bids too? Or again, my question, like, before, like, what happens if the bids come in lower?

Well, if they come in lower, I mean, it's good for everyone. Then we're gonna try to go to construction and save some money.

Yeah. But do you we get money back?

Well, I think Jeff had already mentioned anything that's left over and much like we've had in the past with bids that come in different, it goes back into the funding What

we're not likely to get back for from from a type b perspective would be the interdepartmental funds. What we may receive back would be our percentage, of 25% versus the federal 75% if my understanding of how this usually works is correct. Correct.

Could we make an amendment to the item that we will approve the inter department services, can't remember how it was exactly worded up there, fee not to exceed 11% of the total project costs. I mean that's it's 11%, correct, of what we're estimating?

Yeah. So, that's just a ballpark. That's how they budget in the CIP. It's actually based on actuals. All of our staff have to keep time sheets and and it's recovered based on actuals. And we're running well south of that. So that's just a budgetary figure.

I think what this board is having a problem with is that we're putting up a million dollars and we're getting a $2,000,000 grant. And we're putting up all the funds for the interdepartment and the grant match and those aren't coming from another funding source. And so if we got bids that came in less than the I'm sorry can you go back to the sheet with all the expenses? If we got bids that were less than a 2.985 total construction project, I think what we're looking at is could we amend this to say we are not going to approve inter department services fee in excess of 11% of the total construction costs. So if it did come back in under, we would get those those funds back.

Yeah. So let me explain how this works. So, like I said, the 11% is an estimate. Mhmm. I'd say most of the time we come in well below that. In fact, you know, my my department's costs have been averaging less than half what what they're budgeted in the CIP. So, those funds are the same thing as if the construction comes in below budget. So, it's not allocations. Based on actuals, anything that is not charged to the project falls back to the fund balance after you close the project out.

Then it shouldn't be a problem if we put a max of 11%.

Well, then the problem becomes if our costs actually start exceeding that. So then we're have to track that and say, oh, we've made some agreement with type type b that we're not gonna go above that. And if it looks like, you know, this is having more administrative burden and it's costing more, there's more time, it's like, what do we do with that? So

I I understand what you're saying but I think our concern is is that we're coming with all the funds in the way that this is is written is, you know, we are just out the not the $9.68. If we did come in under and you're saying that your department is coming in under on a fairly regular basis. Yeah.

Typically, we do. It's it's not giving me major heartburn, but with grant funded projects, there's more of an administrative burden in reporting and so forth. The the percentage on those is tends to be higher. I I would bet if I had to bet, I would bet it's gonna come in under that. And, you know, if for some reason we're not able to proceed with the project, then those charges never appear.

Correct. And that was gonna be my next question. If we did not get the wording of this FEMA grant, these funds would go away. I think I would be much more comfortable with this if we did have an amendment saying that that inter department services fee was not to be in excess of 11 percent of the total of the total construction costs. I think it's great when we can go out and get money from elsewhere to come be invested in our community and improve the assets that our community uses.

But I do have the same concerns that have been expressed up here and so I think if we can put that cap on there and then if that does come in under or utilization comes in under which I think is great, I think that it would just satisfy maybe make everyone up here

little more. I agree with that because I don't want it to happen that then later on they're just gonna, oh, no. Now it's more than 11%.

Mhmm.

And if it is more than 11%, then the good news is I know department would have very much tracked the usage of the administrative costs involved, and then we'd be able to look at that and say, hey. You know, this is this is significant burden to the city, and we can then look at sources of more funding which may or may not include type b at that point in the future.

Yeah. I think the consensus is, you know, we look we are happy to support a project that is an asset for the community and especially a public used asset, a park that's been wild widely used in the past. I think great more beach access is a wonderful opportunity.

And I especially want to commend the drainage being addressed through this project. I think that's so important, and I think it's a great I'm just jumping on to say that I agree with everything that you're saying, but ultimately, I agree also with the flip side of everything Diana is saying.

So is there an amendment on the floor for this item?

Yes. I'm oh. It's your turn. I

motion to amend, to to mention the cap at 11% on the interdepartmental fees.

An amendment for the grant match totaling $968,000 of which 11 per not in excess of 11% of the total construction costs allocated to the inner department services fees.

Could see the fund breakout again so we can make sure we're getting our wording right. I would appreciate that. Yes.

Yes. That the interdepartment services fee, a motion to amend that interdepartment services fee is not to exceed 11% of the total construction costs for the project.

For funds provided by the type b Okay. Corporation.

Can you read what the amendment is? There's been a lot.

Can we open public comment though? Public hearing though? We haven't opened it, have we?

Okay. No, we have not. I'm so sorry. I'm going to open, the item for public comment. Is there anyone here to make public comment on the item?

Okay. Have you received any public comment on the item? No. Okay. With that, I'm going to close the public hearing and entertain a motion. I'm so sorry.

That's okay. So so y'all made a motion for the interdepartment services not to exceed the 11% of the total construction cost for the project.

To amend to mhmm.

Okay.

And miss Masakoshi made

I motion to approve.

Is there a second? Seconded. Okay. Vote on the amendment. All those in favor say aye. Aye. All those opposed say no. Alright. And now we'll move forward to a vote on the amended item. Yes. Okay. I'm going I will entertain a motion to on the amended item.

To approve as amended.

To approve to approve as amended. Thank you. Is there a motion? No. To approve as amended.

Okay. I motion to approve the amendment.

Second. All those in favor say aye. Aye. All those opposed say no. The motion carries. Thank you.

Thank you very much. Have a good day.

Alright. Thank you for everyone's patience with that. Item number or section nine, presentation items. Item number seven, engineering services type b quarterly project report.

This is something that we've historically done every quarter, where we report on the projects that are in the pipeline, capital projects that we're managing, and that's kind of our job. Project has proven the CIP. Our job is to get it through design and then advertise for bid, get it through construction, and and close out. So while it's within that pipeline, it'll be appearing on our our report. And the first one up is Huntwick Avenue.

Any of you that go to HEB on the South Side are familiar with that. That's the road that comes in off of Staples, and it was type b project to fund reconstruction of that section, which was is actually a public road up until the pavement change once you get into the HEB site and it changed to concrete. So this replaced that asphalt section with concrete. That project is completed, so this would drop off the report. And you were asking about the the funding, so I can't tell you exactly how much some of those internal interdepartmental charges trickle in a little bit, but you should be releasing something around $300,000.

I'm guessing on this project, it would fall back to the fund balance on the old type b. This one is called Industrial Park Roadway Improvements. This is a few streets within the old Rod Village that we are reconstructing and bringing up to standard. This was the old Rodfield Navy base that is now they've closed that and auctioned off the buildings many years ago back in the fifties, and so that's what that area is. If you're wondering, that's the area back behind Billwitt Park.

And this was taken on as a city project, and we've got multiple funding sources on that. We've got some revenue bonds and type b funding and also some certificate of obligation funding. But that project's nearing completion. We're predicting completion in July of this year. Okay.

McCampbell Road. This is the project that runs adjacent to the HEB bakery on Agnes, and I I think that's a big part of the reason this was included on the in the CIP. Now we've run into a number of complications with this project because the drainage system that it was discharging into was undersized. And at one point, we were looking at putting an off-site detention pond in as part of this, and we ran into some real estate issues. And we backed away from the detention and looked at making necessary upgrades to the drainage.

Anyway, we've gotten through that and this project is going out for bid here shortly. It's roughly $21,000,000 project and $6,000,000 of that is type B. Bear Lane, this is a project that was included in type b only for design. We haven't identified construction money yet, and we're still early in the design phase, 30% design, what we call engineering letter report phase. Williams Drive.

This is another one that has design money. We haven't really figured out how we're gonna fund construction on this. This is Williams Drive that goes from Rod Field down to Lexington. There's a big vacant tract there that's off of SBID Service Road, sort of contemplate putting a Costco before. Anyway, the design is underway on that.

We're at about 30% design, and there's interaction there with proposed development. And not quite sure exactly what we're gonna do to actually do the construction. We might have to do it in phases. But the the the big challenge on that, as you know, the drainage goes through there. So it's gonna be a roadway that's built over box culverts. And, probably, the majority of that cost is gonna be in the drainage, not the roadway.

The drainage associated with that project, it will it affect just here? No. What we're seeing? Or

I think it would have it would benefit upstream and surrounding area with drainage.

But it's not going to change the scope of what was funded by us?

No. But what was funded by you is maybe handling design and a little bit of construction. And the remainder of the construction funds are are not yet identified.

Okay. Thank you.

Okay. Harbor Playhouse. This is the HVAC plus other general building improvements. It's currently budgeted at $4,900,000, and we're down the road on design on that. We're anticipating advertising for for bids in the not too distant future, I would say, in the next month or two.

And this will also get this project off the central chilling plant at the Convention Center. This project has been on and off the CIP for ten years. It has been a contemplated project for, I'd say, over twenty years. But the portion of the waterfront on the Inner Harbor running from the Science and History Museum all the way down to the Art Museum is has a lot of structural deficiencies. And part of that, the the flood wall back behind the Science and History Museum is cantilevered flood wall that is not really up standard.

And if that floodwall were to fail in a storm surge event, that has potential to flood downtown. So it is a fairly crucial piece of infrastructure that is is has known deficiencies. This project is programmed in the the CIP for $14,000,000, and the port is actually proposing a project at that location to deepen the channel. And they are they've approached us about letting them manage that project. So there's so far, there's no design or anything going on, but there's a proposed and local agreement with port to transfer city funding to that, let them marry that with their funding for that project, and do that waterfront project.

And after they're complete, you're gonna have that connected all the way from the art museum all the way around to the Ortiz Center. So, it'll have walkability. I think this is the last one, and this is really just a funding mechanism. So under the old type a, we were putting a little bit of funding aside every year to address any kind of critical capital repairs on the seawall. And so the current balance on that is $5,300,000.

But at present, we don't have any program use for that. That's just to stay there in in case we need it for for any critical repairs. That's the end of my presentation on this one.

Thank you, mister Edmunds.

Thank you.

Are there any questions? I I had

a question.

So sorry. I had a question. It

seems to me like it's been on the Bear Lane and Williams Drive, both at 30% design. Could you remind me when exactly did we approve funding for those or when that was proposed? It seems that those have been in design for quite a while now, and I was wondering if there were complications delaying the design of those projects.

I'm not aware of complications on on the design. There's been a lot of discussion over funding construction. So this wound up being basically a design only project. It was originally considered as a project on Bond 24, and there was a lot of competition for those dollars. And I think it was around that time when they were putting Bond 24 together that assisted city manager came to type b and pitched this project for a type b project, and it was agreed to at that time.

So we haven't identified the construction funding, so I would say that's the long pole in the tent. We'd probably speed up on it if we had a solution to that.

Was there not a match with the RTA on this project?

You know, I I think there was some discussion of that at one time. I I I think it was mostly discussion. I don't think that that has been resolved in terms of any kind of contribution from RTA.

Okay. Thank you. Any other questions? With that, thank you. Alright. Next up is item number eight, the CCIA's minimum revenue guarantee quarterly report for the period of October December twenty twenty five for Frontier Airlines.

Good afternoon, madam president and corporation members. My name is Richard McCurley. I'm the director of aviation and here to give you a quarterly performance report. It's going over the period of October through December 2025, the first quarter period for the contract agreement with them. So if you look at their flight schedule, they run a Sunday and Thursday operation.

The load factors for October was 49.5, November was 38.8, December was 56.7. They look at the quarterly period to come up with a number so their average was 49.5 that we have to work with on the agreement. Factors affecting performance at that time as we know there's a full government shutdown October through November that affected flights, caused delays and cancellations, so it did affect us also in their operations. And, of course, we had the winter operations. If you look at the economic impact during this time period, the numbers that were directly coming in to Corpus Christi was 892 visitors.

It was a $164.44 per day spend. We took it as a three day average, some were four days, but we took the lower ranking. And if you look at the direct impact directly you had a $440,000 indirect you had a 154 induced impact you had 110,000 for a total of 704,000 estimate. So you have the 704,000 then you get into the MRG payment. When you look at the payment, is $6,568 per segment or for the whole quarter it's $394 They count as segment is the flight coming in and a segment is also the flight going out.

So there's two segments to that flight operation. So when they looked at their numbers, they did their calculations, they came back to us with their invoice for $315,264 And that's based on when you look at it, the amount of flights that can be done during that time period. So when we started October 16, it was a few less flights. And so when you look at those two numbers let me go back. When you look at those two numbers, you look at the 704,000 impact and you look at 315,000 paid out, you get to return on investment at 1.23, so 23% return on our investment in that.

Also getting new visitors to this that will hopefully build up as others talked about Corpus Christi. This is preliminary. These are numbers that we have. We haven't sat down with them. We're still waiting for the report.

The report usually runs sixty days for them to give us so that we can start doing the negotiations and what we're going to actually pay them out. But what we're looking at is January was 39.2, February is 44 and March was a good for the spring break, which is 56.8. Things that we're doing to increase the load factor where you've increased the marketing spend for spring break during that time period, which showed payoff. We're targeting budget conscious travelers aligned with Frontier's brand when we did that marketing. And also we've worked with Frontier on their incentive marketing spend because they had money left over, we told them we really need you to do a push during this time period.

And they spent the 65 ks, which they had a 3% click through, usual is about 1.9%. When you're looking at their load factors and everything, it's important to note that in their Denver flights going to their direct hub, they like to see an 80%, an average of 80% fluctuating there, so getting an 80%. New routes, they look at about 70% on those, which is ours. So we've got to hit that 70% as we're looking at it. Still working with them.

They put us out all the way through posted through August. It's actually end of August right there. They've shifted a little bit to September 6 as their very last flight for their schedule. We have a meeting next week with them to see what opportunities remaining moving forward from there, everything. And one of the main factors that we have to look at right now is, of course, as everybody heard, fuel prices are up, which hits their bottom line, their costs.

And also now, you have Spirit Airlines who's gone out the market. We're seeing a major shift with the airlines. They're retracting any low performing flights and everything. We know of 14 airports that they've pulled out of Frontier has or scheduled them to pull out of to go and redirect them to the Northeast. Couple of other airlines are doing that, pulling those markets and everything to realign.

You don't see the introduction of the Spirit Airlines aircraft to other companies and everything to take on those additional aircraft, do the maintenance and other things to convert them over. But we are closely monitoring, we have our meeting next week with them to see what the future holds for us. And with that, just want to thank you all. Thank the Type B Corporation, thank Visit Corpus Christi, and of course the city for their support for this. We still have opportunities with the other lines.

We're in discussions for new routes and everything and hopefully we continue and hopefully we can get this to get back on track. The last month we did have that 56, so it's getting there. A good time period is going to be the summer months. We'll hopefully see those numbers so we can continue to have conversations try to really push and justify this fight. And with that, I'll open up to questions.

Thank you very much. So did I hear you correctly? They they like to see a 70% load factor on new routes?

On new routes, they like to see it build up as it incrementally continually building up that 70 where you're seeing about the on the year you're seeing like the last four months is hitting close to that 70% or hitting 70%.

So we're looking at this next stretch essentially to September 6 to get to that 70% or this route will go away. Is that correct?

That's our discussion next week. We'll look at what opportunities are to keep this route and what incentives they would need in order to keep this functioning. They see the demand there. You know, they've we've had discussions because they saw all the issues that were happening with the fueling prices, what's happening with the shutdowns and other things, factors moving up to this. So they've always stated, we understand this is. Let's look at the next period. So let's let's look at the holidays. Let's look at spring break. And I said let's look at summer months.

I've had a couple people approach me about the dates, the days that this route goes, especially for those that are traveling for for a vacation whether coming here or going to Colorado and that Thursday is a tough day. You're either cutting it short or having to go early, a lot of the places are weekend to weekend type rental. So I have had some people approach me asking how those dates got those days got selected. I know that the airline did their own investigation on that but I'm wondering if maybe a change in the day that they flew would help increase the utilization or the load factor.

We can have a discussion next week with them. But they look at their routing and the numbers that they estimate to come with those factors, but we can talk to them about it.

Perfect. Thank you. Any other questions? Thank you very much. Alright.

Item, item number nine, the Corpus Christi Regional Economic Development Corporation quarterly report.

Good enough good afternoon, everyone. Randy Almaguerre, compliance officer with the EDC. This item before you is just to give you an update, that we do quarterly. I know earlier, the calendar year, we weren't able to get on on the calendar with some shifts on meeting dates and what have you and long items on there. So we're here to brief you on large projects, your your multi year projects, and then your eight small business agreements.

With those will be a a wrap up of f y twenty five to show you what that looked like on those. So here's the first one, the dual branded hotel, the Marriott Courtyard and Residence Inn. Just to give you some numbers here, it was a grand amount and approved of $2,000,000. And that $2,000,000 is over the course of five years with the performance matrix in place, 400,000 up to amount, each year for five years. It's a creation of 73 jobs, with a conference center of 9,186 square feet, 205 hotel rooms, and they have a construction completion date of 01/01/2029.

Talking to the project last month, they haven't broke ground yet. They look to break ground later this year. Here's your Texas A and M University Lone Star. It was now rebranded to the Autonomy Research Institute. This one looks to be almost complete here. They did the construction. We did have an amendment on that one. They got about $5,252,905 dollars left in the grant. It was a $4,000,000 grant. This contract does expire October twenty eighteen of this year.

Here's your Homewood Suites by Hilton. It's another grand amount of up to $2,000,000. It's a five story, 120 hotel rooms in the heart of downtown. This one has a creation of 65 full time jobs with the 7,000 square feet of the retail space and indoor outdoor dining restaurant, other amenities, rooftop bar. They also have a bar inside on the roof as well.

So you have an outdoor and an indoor Topgolf suites, another conference center up top there to host some small meetings up there as well. This one did I didn't get to put it on there. This one did get extended out for the construction completion date of 08/31/2026. In talking to the project, they look to have a temporary CFO this week and then go from there to secure that permanent c of o. Here's Del Mar College, the enhanced skills training for those five different broke programs.

This one expires this year as well on on 08/27/2026. You can see those five different programs. You can see what's remaining in the grant. They've been expanding having little issues on securing the the funds in a in a fashion where they have to submit on their end. They have to get get the equipment and then verify it and then send.

So it's taken a little bit of lead time on their their side, not so much on our side or the city side, but on the on the foundation side. And then here we have South Texas military housing, the Sinatra's admiral's quarters that got approved for a million dollars. Talking to Regis, he looks to start breaking ground this summer. I know he's as you can see at the bottom, potential summer request coming in. They've got everything, all the preliminary preconstruction, so they're looking to to start constructing it in the summertime.

Quarterly, I hope to have some kind of update on this one. I know this one's been in queue for a while. Here we go into our eight small business agreements. These first two are fiscal year programs, and then you'll see the next six are calendar years. So, again, we're recapping f y twenty five. The next quarterly, I'll have 2026 up to date to show you what that looks like, but this this grant amount was for 86,700. As you can see, they had 2,602 go back to fund balance. If you look at their q four report from last year, a hundred and eight hours of mentoring, 40 workshops with 758 unique attendees. Here's your LIFF fund. This was a $150,000 grant.

Have a typo there on the grant remaining. It's 59,000. I went back to fund balance. I was talking to Laura and her team. FY twenty six grant amount request was 75,000. So just to to to manage that low to see what that looks like. So we're not holding up all this funding where it's not getting expended fully, so we came back with 75 for f y twenty six. As you can see in f y twenty five, 11 small businesses did qualify for the program, and those those loans range from 10,000 to 53,000. Here's these next two are your internship programs with the university and the college. So with A and M, they had 85 students participate, and out of 85 of those 10 were converted to full time.

I know that was requirement a few years ago. I believe madam president had made that mention to include something like that in there, if I'm not mistaken. But they had 10 convert to full time, so that's retaining that local talent here from A and M and then staying in the Corpus Christi area. As you can see, the participants, 66 with 14 of those being you, and the grant funding was fully expended. Del Mar's internship program, again, as you see the participation from the students, a 105 participated, and as you see there, eight converted to full time.

And you can see it was let me see here. 22,000 went back to fund balance. It was a 140,000 request. Here we got Apex is is helping small businesses secure local and state federal contracts. As you can see, they helped 348 unique clients, and those small businesses helped them secure $371,000,000 in contracts.

They had 95 events. As you can see, the assistance helps business identify secure contracts, other federally funded opportunities with now the Department of War now. I'll get that corrected. And then contract resource centers is the same kind of thing. It's helping small businesses secure with the large industry contracts in the area, multiyear contracts, and making sure they're able to get in that system and they have all the requirements in place to secure those contracts.

As you can see, 302 clients with 303 sessions, $1,700,000 of contracts awarded to those small businesses that went to the CRC to secure those services. And then we have the cyber center that kinda helps that leads into that, gets them with those requirements because they have to have all these cyber securities in place when they're applying with these contracts with the CRC and the Apex Accelerator. They helped 51 clients, three hundred ninety two hours. As you can see, six clients in 2025 received the supplier performance risk system score to be eligible for the Department of War contracts, And it had a 140, I believe, they requested 200,000 or a 195, I'm not sure, for the FY '26. And then our last one, that SBDC, as you can see, some of the data points there created 50 businesses, 51 expanded, 183 training events, you know, almost 3,000 attendees.

And this is someone who they helped the clients with different things from one on one business to financing, marketing, management, things like that. That concludes my presentation.

Thank you very much. Are there questions from the board?

Nope. Just appreciation for your careful tracking of this. And I really like to hear where, you know, you're working with them and coming back to us with realistic asks based on historic performance and what's going on in the community right now. Appreciate you.

Yes ma'am, thank you.

I'm so sorry, you know I have questions. You don't get to go, and I'm so sorry, I know this is a long meeting, it always is. First, I want to say thank you to TAMUCC and Del Mar for tracking those full time employment numbers. That's huge to know that our investment in our local college students is creating full time employment here. I know I hear from business owners all the time about how hard it is to retain talent, so I'm so excited to hear that we have 18 full time positions that were created from this program.

I think one thing just to distinct with these internship programs is these aren't just all graduating seniors that are going to full time. These internship programs are used by all the grade levels. So when you look at those numbers and you say only 10 or eight full time, I think the ten and eight is a great number. So thank you very much. I know that's extra work and I know I've harped on that for quite some time, so thank you.

One question, thrilled to hear that the Apex Accelerator and the Cyber Center with Del Mar we're getting into expanding our local technology businesses. I know that's been a very big focus recently. The contract resource center, it said there was 302 clients for 1,700,000 contracts awarded. Are we tracking that and trying to expand that? Okay, thank you very much.

So just looking at that specifically. As far as the major incentives, we've got two two incentives that are out there that were approved some time ago that have not broken ground. I do understand that the military and housing program nothing moves quickly through the federal system. My other question is on the courtyard though, that was approved of almost over a year ago and to hear that they haven't broken ground and they're looking at maybe sometime the end of this year, they had a three year time frame, so I am getting very concerned on their timeline and that we've approved them so far out. So if we can get kind of a firmer update on that of when exactly they're going to break ground, it's a major project I would expect that they have some timeline in mind.

That would be my only other question And I believe you said as far as the military housing, we're gonna see an update on that program.

Yes. And talking to Regis on that one, let them know when that one expires in April 2027. So that's it's right around the corner. And that's what I let them know. As far

construction goes, it'll be here before we know it.

That's what I was letting him know and he believes it's it's not an issue.

Okay.

I mean, I'll I'll be on top of these, you know, every couple months there. Hey, where we at? Where we at? Where we at?

Okay. I know sometimes we have projects that come before us that we're we're the first money in, but I do want to make sure that we're pushing our projects forward and getting those that are going on a year that we have a very firm timeline of what's keeping it from progressing forward.

Yes ma'am.

Okay. Thank you very much.

Thank you.

That's all I had. Okay. Alright. Last item, item number 10, presentation and discussion on the proposed fiscal year twenty twenty six to twenty twenty seven Corpus Christi type b corporation budget. Hello

again. Amy Rodriguez, director of management and budget. Today, we'll be seeing the proposed f y twenty seven budget for the first time. This is presentation only. We'll be bringing it back to the board for a second time on June 8 where we'll seek approval for the budget.

This first slide is a summary of our financial statement for the type b economic development fund. And since this is the first slide, I'm gonna just walk through the columns and what they represent. The slides following will have the same columns. But starting from left to right, the first column with numbers, there is our f y twenty five actuals. Those actuals are final audited numbers.

That gives us a good solid starting point for how we started f y twenty six. The next column is the f y twenty six adopted budget. Following that is our f y twenty six amended budget and then our f y twenty six estimated actuals. So that f y twenty six estimated actuals, you'll see the beginning fund balance matches the ending fund balance from f y twenty five actuals. And then the total revenue and total expenditures are where we believe will end the year now that we're about halfway through this fiscal year.

That estimated ending fund balance for f y twenty six begins our f y twenty seven planning process. So that 4,100,000 is what we believe will be beginning f y twenty seven within our beginning fund balance so that we know based on what revenues we anticipate collecting, what we have available to appropriate in the budget. Just a note, the amendment that we brought to you previously was assumed in this amended and estimated budget presentation for FY twenty six. So this next slide breaks down the revenues in our economic development fund. As you know, it is funded with 50% of $1.08 cent sales tax, and we are proposing that that sales tax stay flat.

So if you see our f y twenty six estimated actuals, there's 4,600,000. We're anticipating that to stay flat for f y twenty seven currently. We do align these forecast across the board, you know, for all of our type a and b funds and then as well as the general fund. So if if that changes or we we believe that we may see 1% growth, we can update that before we bring it back to you for the second view. This next slide will summarize our expenditures.

So you can see the the different projects For f y twenty seven, we have a proposed budget of 2,800,000. That does include the major business incentive projects and small business projects, and we'll go through what those numbers represent on the following slides. So for major business incentives for f y twenty seven, we do have the 500,000 for South Texas military housing and 400,000 for the courtyard and residence in. That represents the 900,000 proposed. And then in the small business projects, we have proposed budgets for each of these programs.

The Texas A and M internship of $1.99 5, the Del Mar College internship of one ninety eight seven fifty, Del Mar PTAC APACs, one sixty, Del Mar CRC, one fifty. Del Mar Small Business, one ninety eight seven fifty. Del Mar Cyber Center, one ninety five. LIFFund, 70 5. Score, 985.

For a total of $1,275,500. The next fund is our housing type b fund. So we do expect to begin f y twenty seven with 2,000,000 in fund balance. We collect the first $500,000 of half of $1.08 cents sales tax here, and then the the other amount is typically interest earnings. And then we have our expenditures with a proposed ending fund balance of just under 2,500,000.

So, again, sales tax here, we collect the first 500,000, and then we have about 63,000 in interest earnings proposed. Our expenses in the housing fund, we have 10,000 for administration and then a transfer to general fund. We do not currently have affordable housing project proposed for f y twenty seven. The $1,000,000 in f y twenty six is for the Palo Verde senior apartments. The next is our type b streets fund.

In this fund, we have we carry a fairly low fund balance because what we collect here is transferred over to our street CIP, typically. Projecting 4,100,000 in revenue for this fund, and then we have the transfer to Street CIP of 4,100,000. This begins our new type b authorization. And again, we did assume the amendment would be approved in this presentation. So you can see that our original adopted budget had included a full year's worth of revenue, and the amended and estimate reflects five months of collections in this fund.

For f y twenty seven, we expect to begin the year with just over 5,000 in fund balance. We would collect the full year of revenue in f y twenty seven, and then our expenditures would leave us with an ending fund balance of just under 2,000,000. So for the revenue, it's it's half of $1.08 cent sales tax, so just over 4,500,000 in revenue. We have 5,000 for administration, 77,000 for transfer to general fund, and then 2.5 for transfer to CIP. The amount in amended and estimated is that the projects that you approved with the amendment today.

This is for the New Streets Fund. These are the materials and collectors. So we expect to begin f y twenty seven with 1,800,000 in fund balance. We would collect the 4.5 in sales tax revenue, and we don't have any expenditures specified in the proposed budget as as of yet, so we would end f y twenty seven with fund balance of 6,400,000. So this is the detail for the revenue and the expenses.

And then the next fund is our seawall and citywide flood control. We anticipate beginning f y twenty seven with 3,700,000 in fund balance. This fund collects the full $1.08 cent sales tax, so one year's worth of revenue here would be just over 9,000,000. That can be shown here, the 9,100,000 for sales tax. And then for our expenditures, we're not currently specifying any projects for these funds. It does include 5,000 for administration and then 50,000 for the transfer to general fund. That concludes my presentation. I'll stand by for any questions.

Thank you. Can you go back to the major business incentive slide? I know it's a wave of swack. I'm so sorry.

Yes, ma'am.

Looking at the the 2027 proposed budget, both the South Texas military housing, I guess we've heard that they don't think it the April 2027 deadline is going to be a problem. But if the courtyard has also not broken ground as of right now, That that $400,000 payment is not until they produce the jobs. And so it feels unrealistic to have that in our 2027 budget maybe push that out. Correct? I mean, I just don't know that they're gonna get that done.

Okay. Yeah. I thought it was I thought it was a three year project. So I was a little surprised to see it on the 2027 budget. So if we can push that out to the appropriate year, that would be great. Then you're saying that the South Texas military housing is a 2027 project? Yes. Okay. So yeah, if we can get those in the right years that would be perfect.

I'll definitely work with the department and have that corrected for the next time we review the budget.

Okay. Thank you. That was the only thing. Any other questions? Thank you.

Thank you.

Alright. Section j, executive director comments. Are there any executive director comments?

No comments at this time.

Thank you. And with that, there being no further business, this meeting is adjourned.