Master Plannning - Regular Meeting

Alright.

Three. Okay.

Okay. Okay. Thank you, Thank you, mister. Good morning. Today is Thursday, April 23, eight actually 08:04 now. This is a meeting of the Corpus Christi b corporation type b. At this time, I'd like to call this meeting to order. Miss Huerta, please call row.

Okay. President Diana Summers has recused herself from the meeting today. So vice president Jesusi Menace will be leading the meeting. And are you and he is present?

Yeah. I'm present.

Okay. Secretary Mark Larue?

Present.

Victoria Holland is absent. Johnny Filipello?

Present.

Duke Consola?

Present.

Claudia Mestagasi is absent. Okay. We do have a quorum present to conduct the meeting.

Alright. Thank you, miss Huerta. Would anyone like to make public comment at this time? Miss, have received any?

Sir, have actually we have four individuals who have requested to speak. The first one is Charlie Bachta. Okay. So, mister Lehrman?

Is that alright to go out of order?

Sure. It's okay. We can take care of that, sir.

Good morning.

Good morning, everybody. How are y'all doing? My name is Jeff Larman and I'm an attorney and I represent along with my partner Denny barry elevate Q. O. F.

LLC who's the applicant for the extension that's on the agenda today. It's an extension, as you guys know, for a business incentive agreement for capital investments, which is exactly what this board was created to do. And the reason for the incentive is, as you guys know, the construction of a 127 room Homewood Suites Hotel in Downtown Corpus Christi, right down the street from here. I'm sure you guys are familiar with the history of this project, so I'm not gonna go through all those details nor do I have the time. But, unfortunately, there's been a throughout the per the tenure of this contract, there's been an ongoing legal proceeding that is the result of a local competitor, Ajeet David, which has led to a lawsuit, which everyone involved in that case feels is meritless, and and it's currently pending where mister Agita has asserted various claims.

And that lawsuit is currently pending before the thirteenth Court of Appeals on an interlocutory appeal. Notably, the city of Corpus Christi is a party to that case, and they have filed pleadings with the thirteenth Court of Appeals along with the remaining defendants that have taken the position that that lawsuit is meritless, contrary to Texas law, factually inaccurate, and lacks the necessary jurisdiction to belong in the court. That's not just my opinion. That's the opinion of the city of Corpus Christi's own attorneys. As of today, that is still their position.

So as you go forward today, understand that the city of Corpus Christi and counsel for Elevate share in the same legal position as to the merits or lack thereof of the lawsuit that has made the basis of so much controversy surrounding this incentive. Importantly, since the lawsuit was filed, all the claims have been investigated. They've all turned up nothing. No crime was committed, thoroughly investigated by all relevant law enforcement agencies. So how can the contract be illegal if there's no illegality?

It can't. Despite this, I understand that mister Dave and his political allies are still spending countless hours lobbying everyone that will listen as to why this contract should be terminated, why this extension should be denied, and why this project should fail. Now as you guys know, this this hotel is not complete, and there's reasons for that. And the reasons include tariff driven volatility, government shutdown, supply chain issues that have affected procurement and subcontractor availability. It's all well known, all well documented.

None of that's made up. So there's a simple request for an extension. The hotel will be finished very soon, and the economic impact will be felt by this community very soon. So my client and I are asking that you guys ignore the noise and do what you routinely do, which is request extensions for projects just like this. That's all we're asking you to do. Follow the precedent set by the type b board, request grant the extension, and allow this project to continue moving forward. Thank you very much.

Thank you, mister Lehrman. Mister Bhakta, would you? Okay.

Good morning, and thank you for the opportunity to speak today. My name is Charlie Bhakta, and I represent ZJZ Hospitality, the management company for the Homewood Suites project in Downtown Corpus Christi. I want to address the delay in a clear clear and straightforward manner. This project has not been delayed due to the lack of effort or intent. From both a development and operational standpoint, we have been actively pushing this project forward.

However, over the past two years, we have faced a number of challenges outside of our control, as indicated by Jeff, including supply chain disruptions that affected procurement and subcontractor availability along with the tariff driven volatility and government shutdown that significantly impacted construction timelines. In addition to those real world challenges, there has been ongoing litigation brought forward by our competitor. While that matter is being handled through the appropriate legal channels, it has created a level of distraction and noise around this project that does not reflect the reality of the work being done on the ground. Despite all of this, the project has continued to move forward. This is not a stalled development.

It is a project that is progressing and nearing completion. From my perspective as a feature, I can confidently say this hotel will bring meaningful value to Downtown Corpus Christi. It will support surrounding businesses, create jobs, and contribute to continued growth and vibrancy of the downtown area. We remain fully committed to opening this hotel and making it successful. All we are requesting is a reasonable extension of time to complete what is already well underway, consistent with how similar situations have been handled by Type B Corporation in the past.

This project deserves to be judged on facts, progress, and its long term benefit to the community, not on outside noise or distractions. We are not asking for special treatment. We're just asking for the opportunity to finish what we started and deliver on the promise that this project represents for Downtown Corpus Christi. Thank you for your time and consideration.

Thank you, mister Bhakta. James McGill.

Good morning, members of the board. Don't have to state my name or residence or anything.

Yes, please.

Okay. James McGill, a Corvus case resident, District 2. Before I begin, I wanna be clear about why I'm here. I'm not here to speak on any of the surrounding noise or media attention tied to this item. I'm strictly here from the perspective of downtown development as a commercial real estate broker who passionately works in this area on a daily basis. Downtown Corpus Christi benefits from projects that bring activation, jobs, and long term tax based growth. This project has characteristics contribute to that progress and that's what this board plays a critical role in. Think so if I'm right. Shaping outcomes that support economic development and long term growth. I am strongly supportive of Downtown Corpus Christi.

It is a place that seems our leaders consistently have to be reminded of its importance to the future of the city. In my opinion, the impact of having a healthy downtown is economic development one zero one. I spend significant amounts of time analyzing transactions, trends, and investment activity in our downtown core. Catalytic projects in general are unfortunately rare, just like this one. This developer and other local developers and current business owners have all taken big steps and acquired more property to develop using this hotel as a catalyst.

I hear it on a daily basis. Since this project was announced in 2023, there have been roughly a 150 property transactions downtown according to deed filings within TERS number three. Around 85 of those were not in the downtown pool before. And this is data that I received from the appraisal district and have absolutely been through and is factual. That tells you there is movement and interest, but very few projects actually anchor that momentum and turn it into something transformational until they see the tides rising with their own eyes.

Another aspect to this project represents the type of opportunity that type of opportunity. It is a mixed use development with retail on ground floor and hotel component above. That type of product activates streets, creates foot traffic, and builds long term value. We have not seen anything like this downtown and I can't think of any others like this in Corpus Christi alone. At the same time, it is a proven model in other cities, another economic development project one zero one.

Another perspective is that I would like to share is if you look at the other hotel projects currently underway downtown, which there are three others including this one, they are all redevelopment projects of existing buildings. Those are definitely positive for the area. This project is a new development though. It creates new taxable value, new jobs, and new opportunities. When you look at the impact side by side, this is obviously one of the most meaningful projects in the pipeline that we have in our downtown corridor.

Downtown is also unique in our market. It is the truly true only truly walkable environment we have. It is one of the few places where someone can park, spend a few hours, and move from retail to retail, and from what traction to another. That kind of environment depends on projects like this to continue evolving.

Thank you, mister McGill. Richard Lomax.

Good morning, board members. Richard Lomax. Did you say we have to name our street address?

Just your city.

Okay. Corpus Christi, Texas. I'm here today. To James to just give you all my perspective as a operator next door in a family that's been operating downtown for forty five years. Our planning there may be no more catalytic project in my career than what's happening across the street from us, and these kind of initiatives affect our planning and the ripple effects of the incentives from the type b board get felt around all of downtown.

So plainly, if we didn't know that the hotel was coming, we would not have opened El Camino. Everything all of our strategy was around opening up the gates for future growth and creating a pattern of the next one. Move on to the next one. Move on to the next one. So otherwise, if we didn't have these kind of projects on in the forecast, we would've been focusing on lean operations, less hiring, probably a 120 less employees. And our strategy would have been different. I'm encouraged by the growth of downtown. I'm encouraged about where we can go. So I just wanna speak in support of what these kind of projects can do and move to the future. You know?

So that's all I have to say about this. We're in strong support of the hotel continuing on and excited about the summer. Thanks, board member.

Thank you, mister Lomax. Susie Saldana.

This is Aldaglia Corpus Christi. I bring you a different perspective because I always do. You've heard some very good things from people up here telling you why this extension is warranted. I come here to tell you that what you all know, that this is a political thing that's going on and we're hoping that you all who are sitting in those seats do the right thing. It is political, don't get mixed up on anything else.

This thing is something that is good for Corpus Christi, it's good for downtown, it's good to keep on going, but it will not be if we allowed politics to take over what is being done. That should be separated because you guys have done a tremendous job of doing what needs to be done, providing the extensions when they need to be provided. If they get you the documentation, if they get you what you need, 99% of the time you have approved it. So we're asking you to do the right thing. I come here because I don't want you to be political.

I want you to do this on the merits of the project. Okay? Don't get involved in the risk, do it for the merits of the project and do it because it's the right thing to do. I look forward to seeing every one of you vote for this extension. Thank you.

Thank you Ms. Saldana. Vice President Jimenez that concludes our public comment.

Alright. Thank you everyone for for making time this morning and come and voice your your opinions. For the record, would note board member was has joined the

joined the board. Thank you. Yes.

At this time, the board will go into executive session item one per Texas government code section five five one dot zero seven one and five five one dot zero eight seven. We will return. Thank you everybody we're back on the record from executive session. I'd like to call this meeting back to order. We have agenda item two, resolution approving amendment number two to extend the construction completion deadline or issuance of default notice to elevate QOF LLC for the business incentive agreement between the Corpus Christi B Corporation and elevate QOF LLC Hilton Homewood Suites Hotel project.

Mister chairman.

I'll entertain a motion and ask for a second or any discussion.

Mister chairman, I'd like to make a motion resolution approving amendment to to the business's incentive agreement between corporation and elevate q o f extending the construction completion date of March thirty first twenty sixth to August thirty first twenty sixth and extending the primary job creation retention dates for certification and making certain findings related to affirmation of the business incentive agreement for the Hilton Homewood Suites Hotel project.

Alright. Second. Alright. We have a second. Any discussion? Alrighty. With no discussion, I move to a vote.

Okay. So, all in favor?

Aye. Aye. Aye.

Any opposed? Okay. And for the record, miss Summers and miss Mustagasi, recused themselves on this item. So the the motion passes.

Okay. With that, I believe Zonger's office, do they have any reports? No comments. Thank you. Alright. There being no further business, the meeting is adjourned. Thank you.