City Council - Regular Meeting

All right, we'll call the city council meeting to order at 6 pm Wednesday, January 7th, 2026. Uh, can we get a roll call, please? Yes. Here. Here. I All right. For president, we have corn. Uh we're going to open up with a invitation with um

dear Lord want to thank you for all our many blessings. Mount Pleasant's a wonderful town. Things are looking up in this town and it's all because of you. Please bless us and and and help us do the right things for our town. Dear Lord, we love you. Amen. Amen. Amen. Pledge algorith.

All right, we're going to go in uh open go into open session. Uh public comments. The city council welcome citizen participation and comments at all council meetings. Citizens comments are limited to three minutes out of respect for everyone's time. The council is not permitted to respond to your comments. The Texas Open Meetings Act requires that the topic of discussion deliberation be posted on the agenda not less than 72 hours in advance of the council meeting. in your comment in your comments. If your comments relate to a topic that is on the agenda, the council will discuss that topic on the agenda at the time the topic is discussed or deliberated. Do we have any comments, questions? We're good. Okay. This is going to be kind of like last night. We're going to move into executive session pursuant to open meetings act. Mayor, I um I think the executive session item was put on there as a holding uh place in case you needed to go into executive session.

So, if you don't, you don't. I And I would I think all we're going to do is discuss a couple of the changes in the 380s and city manager wanted to do that in our public forum. Correct. Correct.

All right. Uh yes. Let's go ahead and move on to uh item number one. Discuss and consider assistance in economic development packages including possible agreements under chapter 380 and 381 of the Texas local government code with Anderson Town Crossing Partnership LLC. And that's going to be our city manager. Rob,

mayor, mayor prot members of council. Uh good evening again. We we met last night. Uh before we move on, we do have a few uh people here that will be speaking about this, but before we do that, I would like to uh thank you and congratulate all of you. This is the first time I believe of a recent history that we've had a 380 that this this group has has discussed participating in one. And I think throughout the uh the process, you've asked for a joint workshop, which we did. We had one again last night, and I think it was very successful. the fact that everyone was there uh and asked good questions um and and followed through throughout the process. I just want to thank you for uh going through that process with staff and also showing that you support good development and that development is responsible. So again, last night we had a had a joint workshop with Titus County Commissioners to discuss a possible devel in incentive agreement at 380 with the developer for the construction of an anchor store located in the Anderson Town Crossing development. And again tonight with us we have Jason Claunch with Catalyst Commercial who has been working with us on this project from the beginning representing the developer. Again he's he's here tonight. I will ask him to come up here and briefly and give us a quick refresher and for the record uh talk about uh the project just like you did last time. Thank you, Jason.

There you go. Is that better? All right, mayor manager, uh just uh thank you for uh letting me come here and speak. Uh I do agree. I think last night was super productive. Um, as you know, this uh petition uh for the 380 agreement is essentially to support a national Texas-based retailer. Uh, they have over 300 stores and produce about $5.9 billion in revenue. Uh, we strongly feel like this will be catalytic to the project. Um, we've done the math. Uh, definitely uh in addition to the incentives, this creates substantial revenue and jobs to the town that you wouldn't have. and uh we definitely feel like this is a great uh addition to not only the town but the project. So um I'm here to answer any questions. Uh thanks for having me tonight. Um and we appreciate uh your consideration in advance. Are we asking questions now about Are you going to go over?

I will. And uh Kelly, you were asking about closures and stuff like that. I did a little bit of research today.

Yeah. Like the box store that's coming in, the anchor store that's coming in. It says that um as far as I could find, two stores in their history, they've closed down. one the lease ended and the other one it said it wasn't sure why out of all the stories that they have that's what I found so thank you mayor during last night's workshop you were each provided with a presentation that defined what an anchor store was explained the 380 and also since the county was here what a 381 agreement is and then also we went into the specific terms of the proposed agreement for both city in the county 380 and 381 at the conclusion of that meeting, you were provided with a hard copy of the latest draft of the 380 agreement. Um, that was the latest and greatest version. As of this afternoon, uh, a few minor changes were made. That final draft was emailed to each of you. Um, but then also printed off and you should have that in hard copy form in front of you. What I would like to do is go through that. And also online, I'd add that Mr. Frank Garza with DTRG Law is online and Jim Sabonis with Hilltop should also be online and uh I may refer to Frank uh for some of these um changes but if you look uh we'll just go through page by page so we don't miss anything and if I do if you if you have a question something that I have not covered please feel free to stop me. Um one of the the first things on page one under recital where Creative Destination Development LLC currently owns the property for a development project in the city of Mount Pleasant, His County, Texas, and intends to sell the property to developer upon execution of this agreement. That is new. Uh that was not included in there because if you look at the second paragraph that states the developer is the owner of a project in the city of Mount Pleasant, Titus

County, effective, those two statements are are inongruent. So, we had to make a change to uh make sure that those two sentences were in line with each other. On page two, section 2.1, the only change on there was from 54 you see was crossed out. It's now section refers to section 5.1. So that was just cleaning up a little ter not terminology, but which section it referring to on page three. Section 3.3 the word term was replaced with period. um section 3.5 also on page three basis for calculating the grant you can see the section that was crossed out and then what was added I'll go to the very last sentence for each year developer will cause the anchor tenant to provide to the city the following documentation 3.7 also on page three in parentheses the city grant cap was added That way they're we're able to refer to city grant versus the spelling out the 2,700 every time. Go to page eight. Yes. Yes, ma'am. Can you turn your microphone on, please, ma'am? 3.7. Yes, ma'am.

Uh, on item 3.7 that says 2.5, but on 3.7 on the new document it's 2.5. Yet on the second document it is 2784. The 2784 is the correct number.

Correct. Yes, ma'am. And that those were the numbers that were presented last night. And as a result of that, uh, just as a side note, that will the county's initial agreement was for one and now there goes their goes down to or is reduced to 724,000, but it is a true 95% estimate of our 15 years at 95% and their tenure at 95%. Page eight, section 5.6 B and I'll just read the entire paragraph. In the event of a breach of its agreement by a developer beyond the applicable cure period, the city may seek to ex seek to exercise its right to seek to exercise its right to enforce the developer's obligation here under. And what was crossed out is recapture any sales tax rebates provided by Anchor tenant, if any. There is not a true clawback or a recapture clause in the that this is a correction is not made that is required by the agreement and notification is made and the period has expired and the correction still has not been made. The agreement is null and voidable. That's what that term no changes on page nine signature page uh page 10. No changes 11 and 12. Jason, do you have any like

I think Rob did a good job of clarifying um obviously the the sequence, but um there's a process where as soon as this document is agreed to, then we'll have a PSA and then that process will be in motion. We just didn't want to misrepresent the ownership status. Uh and the other uh item in terms of reporting is is simple. um to maintain confidentiality. Um we're going to require that the anchor reports their sales directly to the city and that maintains their confidentiality. They they appreciate that. So we'll we'll require them to do that. And then obviously you'll have your own comproller data and everything else really. Thank you.

Thank you, Jason. Uh Frank Garza, is there anything that you would like to add? You you've done some some extensive good work on this agreement. I definitely appreciate that, but do you have anything to add? Uh, no I really don't. I think you covered the changes from last night's today's uh document very well. There's really nothing else to add. Thank you. Are there any questions of anything we have not covered?

I do. So um can you explain the first create the first change which was under the recital on page one? So, compared to last night's and today where it says Creative Destination Development LLC currently owns the property and that it's going to be sold to the developer. Can you explain that, Jason?

Yes. So, the the developer in this case is a special purpose entity as I'd mentioned. There's a specific team um to develop the store that has experience balance sheet where so um this property where the track sits will actually be sold to the development group will actually hold the facility store and own it manage it will have the lease with the tenants. So the current owner John Anderson or creative destinations will no longer be the owner that will be it'll be transferred with the purchase sale agreement uh to this to the developer for the project.

Can you name us who the developer is because I just thought it was all John Anderson. No, it's a it's an LLC with a special purpose entity. Mark Mark Morocco, um myself, Steve Herman, the gentleman that was with you last night. Those are all three of the partners that'll be involved in the project. That's correct. If there are no further questions, staff recommends the chapter 380 economic development incentive and performance agreement between the city of Mount Pleasant, Texas, and Anderson Town Crossing for the Anchor tenant be approved as presented at the vote.

Can I get a motion? I'll make a motion to approve the 380 agreement for Anderson Crossing to bring in the anchor store. I second. Madam Secretary, can we get a vote? Yes. I I I All right, it passed unanimously. Gosh, that was easy. All right, that's it. All right.

If I could just take a moment to thank Frank uh for being online tonight and then also Jim and and Jason and then the other individuals that were here to help support. Thank you very much. Righty. All right. We'll go ahead and move on to item number two. Discuss and consider appropriate actions regarding road construction expenses for I30 business park road in the amount not to exceed $350,000. And they'll be presented by EDC director Kevin Carter.

Mayor, council, thanks for letting me be here and I certainly appreciate the time that y'all take to to look at new things. I think uh what y'all just approved is going to be a huge game changer for our community. It's going to help with quality of life. Um that project uh is very exciting for our city and fact that it's going in Mount Pleasant not one of our neighbors u is a big thing and so I appreciate y'all taking the time to learn and to approve that and we're really excited. I think it'll be a big selling point for us going forward. I have three things for you tonight. Uh the first one is uh I30 uh business park road. Am I in charge of this thing? Okay. Not that good at traffic. What this road will do is we I think this road's been talked about for um several months at least. on the east side of LTS uh on uh Commerce Drive which is in our I30 business park. LTS is uh the largest supplier or largest dealer of Toyota forklifts in the country. Um they're based in Tyler and they have a facility here and they want to expand that facility into a full-fledged dealership and to do that they need better access truck delivery uh and and pickup uh on the east side of their property. And so with this road, uh what that would do is you can see that road's probably I can't I don't have my glasses on, so I don't know what the distance is on that road, but what it does, it goes down all the way down their property line. They're actually going to deed some of their property um to us to build that road. some of that property will be on their road that they're going to deed that to us um to build that road. What

that does is it helps them um develop their uh project into and expand. But it all what it also does is it helps us develop that east side of that property there. That track there is about 25 acres that can be split um you know into one, two or three tracks right there um with curb cut um for smaller development. We have a smaller or the whole facility. I mean, a business could use that whole um road and that whole track over there. The EDC board approved this uh on November 13th um up to $350,000 for the cost of the road. is what we're anticipating. BG&E, our um engineering firm, did the cost study and so that is what we're asking y'all to approve is up to $350,000 to build that road. We are building it to city street standards. So, if the city wanted to take over that road as a public road, um they could. Right now, it's going to be a private road until the city takes that over.

That's is it concrete then? It will be concrete. It's all the I saw it in the meeting too. It's Is that where 18 wheelers are going to be turned around or It could It gives them the opportunity to do that because right now what they have to do is they have to go down and turn around at the end of the road and it's it's put somewhere on that uh end of the road. Oh yeah. So are other businesses that are going to be on either side of that, will they have access to that? Do you know? If if we had business go into that um where it says future development opportunity, then they would have access to that. All we'd have to do is do a curve. That's great. Yeah. Yeah. That's awesome. Any questions?

Ready to make a motion? I get a motion. I make a motion to approve the $350,000 to road improvements at the I30 business park. I second. Madam Secretary, can we get a vote, please? I I I

All right, Kevin. Motion passed unanimously. Appreciate Joel. All right. Item number three, discuss and consider appropriate action on match for high demand job training grant not to exceed $50,000. And this is also Kevin.

Yeah. What a high demand job training grant um is a program that's offered by the Texas Workforce Commission as a matching grant um for communities uh EDC's to put up um 4A or 4B money um to get matched by Texas Workforce Commission on a onetoone basis um allow EDC's to help um either school districts or um community college districts to expand their um workforce programs in high demand job uh training on high demand jobs um whether that's you know manufacturing u HBAC plumbing um anything that fits the uh outlines in the 4A code um jobs that we can help with. So, uh I've done this uh in every community that I've been in and then the EDC has done this um the Mount Pleasant EDC has done this as well in the past. U they've done a high demand job training grant for uh for Northeast Texas Community College. What this grant would do is it would put $50,000 of the EDC's money up with um 50,000 from Texas Workforce Commission and and the um what we're asking y'all to do is contingent upon us getting the grant. So the 50,000 wouldn't be contingent upon us getting the grant. But the way that we would um use the monies is we would give $30,000 to Mount Pleasant ISD, 20,000 to Chapel Hill, 20,000 to Harts Bluff, and 30,000 to Northeast Texas Community College um for their um continuing their their continuing technical education. Um, and so I know that I kind of briefly talked with the uh, three superintendent and um, Northeast Texas Community College about doing something like this. Um, we have not got wish list, so we don't know what

they're going to use. Um, we wanted to make sure that we got the grant before we um, asked them to give us u what they're going to buy with that. So I know we have a couple of representatives. I don't know if that's why they're here, but I appreciate them being here. Um, Dr. Kevin Rose and and and Jud from Mount Pleasant ISD superintendent and I appreciate them being here and what they do for our community. I think this is a a great way for us to help. um their um career and technical education programs at the school districts are topnotch and then what's going on at the community college is just incredible what they're doing with um all of their programs um especially in their automotive tech and and uh and healthcare um what they do uh it's it's second to none and so we're very appreciative that they're in our community but we're asking for y'all to approve the $50,000 the board approved that on November 13th.

Certainly answer any questions. Well, I was curious, will we get more details on what the money will be going to whenever

Yeah, absolutely. So, we'll do a report. What we'll do is um if y'all if y'all were to approve that, we'll visit with Texas Workforce Commission to make sure the funds were are available still. Um they should be. I mean, there was plenty of money in there whenever we when the board approved that. And so what we'll do is we'll notify the school districts for sure what they have to spend and then they put a list together of what that what that looks like. You know, some may want welding supplies, some may want um you know, robotic equipment or we'll just have to find out. But as soon as we know, I'll I'll include it in one of my quarterly reports and report back to y'all what they bought.

So great. but it has to go through a process um with bid process on what they buy and so uh hopefully they'll buy larger items. I know it's easier on the on the grant if they buy larger items than buying, you know, like $50 items kind of makes it tough. But anyway, we will report back to what they buy. Are they allowed to help students with any of that money? No, it has to go to equipment. Okay. Any questions? Right. Can I get a motion? I make a motion that we approve the EDC's corporation match for high demand job training grant not to exceed 50. Can I get a second?

Second. Madam Secretary, can we get a vote, please? I I I Yes. Kevin. Thank you, Mayor. Item number four, discuss and consider appropriate action on Mount Pleasant Economic Development Corporation policies, procedure, manual. And Kevin, just to let everybody know, this is stuff you've brought to us. I know a lot of this stuff you brought to us like two months ago to start reviewing, right? Yes, we have talked about all of these things. At least I've talked to y'all at least either individually or we've talked about it in executive session.

Yeah. And I was thinking I didn't know if it was public or not, but it's I mean this is just part of our transparency and the communication with EDC is is just unbelievable. So go ahead.

Yeah. What this is is this is a policy and procedure manual for the EDC. The the city has policy and procedure manual for its employees. The um a lot of people may not know, but the Mount Pleasant EDC is a separate corporation and u myself and staff are employees of the corporation and not the city. We pay the city to be uh employees or or paid as employees. And so we needed a policy and procedure manual that I think this was being worked on um over the last six months or so. Um and so we we think we've got it to the the tweet um where everybody is was happy on the board and and so just a few of the highlights. It talks about just general policies and procedures for us, you know, work schedules. It talks about employment information and requirements, work hours and pay. Um, one of the things is, um, it talks about how we're paid. Um, we follow, um, since we're paying the city to be, uh, basically employees. Um, if you didn't know, the the EDC pays the city $15,000 a year to be its fiscal agent. And I am working on a fiscal agent policy. I visited with uh, Mr. Vine about that. I think it's important for us to have an agreement. EDC and the city um that that y'all are acting as our fiscal agent. So, I've just about got the fiscal agent policy done. And so, that's something that we'll bring to the board and bring to y'all as a body um for y'all to approve as well. But, um in that, uh one of the things is the employee benefits and pay schedule. Um as it relates, especially with the benefits, um we thought it was important for us to follow the same uh benefit schedule as uh the employees at the city. And so, um section five. And really, we made that a simple statement is that we're going to follow the uh employee the city of Mount Pleasant employee guidelines when it comes to

employee benefits. So, we're going to get the same sick pay, same vacation um schedule, same holiday schedule as the city um follows. We thought that was important. And then one of the things that is uh a huge thing for for us um at the EDC is the travel policy. um we were not as far as being transparent with the community um I don't think it had ever been done is that um when we travel um to a conference or we travel um to seaside selectors or or whatever it is when we go out of town and we fill and we we've spent the night in a hotel or we've spent mileage or or money and meals um out of town um there's travel expenditure form now and so um staff will fill those out. It'll have the receipts attached to that. Um if people want to see those and they certainly can ask for those to see um I have the authority to sign off on staffs. Uh and then um the either the board chair or the board vice chair will sign off on mine. I think that's important that I'm not signing my own travel uh report. And so um and we've already actually already implemented that when I first got here. I thought it was important for us um to have that accountability to the public when it comes to us spending that fair money for travel. So um that's one of the things that's outlined in here. And then there's a conflict of interest statement um that all of the employees and the board members will have to sign to make sure that they abide by that because we do um just like y'all do you have to vote on things that you may have a conflict in and all it does is outline when you have to step away and not be part of that. I know that we've had a couple of things. I know um Council Member Hinton, you stepped out on one of the items in executive session because you had a conflict and I know Council Member Hegelman has stepped out on on something that we've talked about and that's really important uh for us to be

uh to make sure that we abide by those conflicts of interest. So, that's one of the things in there and that's a highlight. The board did approve that on November 13th. So, I think y'all had a copy of this for quite a while to look at, but I'd certainly answer any questions about the manual. So, it's not really a question, but I want you to clarify it in case people are listening. And I can't remember what you said. Okay. So, you're paying the city as an agent.

Y'all are the city is the agent. So, we're paying the city to do our accounting, uh, our, you know, our monthly accounting. Um, they do the bene our benefit. Um, basically we're paying paying the city for us to be an employee. So they handle our payroll and retirement, but it's all pass through money. So you know, whatever if that's $25,000 a month, the city withdraws that $25,000 from the EDC's account.

So the only thing I want to clarify I had sorry uh was um Julian's not here. So my understanding is that we have uh clerks, bookkeeping clerks that are in the back and they just do the input. And so it's not Jillian per se. I'm looking over Rob, but it's somebody that's just doing the input that y'all pass on. And they are not authorized to raise a red flag if there's something that doesn't line up. The only time my understanding when I ask again it was a year ago that a red flag is raised is if the total amount goes over the budget that y'all have uh submitted. So I know last year when there were questions that people were saying that we had u that's why I asked that we had the authority to raise a red flag over what you guys were doing and that's why I checked just to make sure that we But you are going to be you're the one watching the red flags.

That's correct.

Yeah. You you know our our board obviously uh approves a budget and then you you know approve the budget that the board has approved. Um because that's one of your roles with the economic development corporation is you're over approving that budget after the board's approved that budget. And so you you hope you've hired the right person to watch that budget. Um but certainly um the city sees that obviously um with uh council member Corbell, the mayor and and the city manager are on that board and they see those financials every month. Um like tomorrow we're going to have a board meeting. Those financials are presented every month and you have the ability to to ask questions during that time or you have the ability to ask question anytime during the month. Hey, what' you spend you know this money on? Um certainly we want to be transparent with the public. what that money's being spent on if they have a question.

Thank you. I just wanted it to be transparent for those that were listening. Yes, ma'am. Yeah. Council, if I might be able to add one thing just in addition to what you've said, it doesn't matter what level of responsibility you have here with the city. If you see something that is of concern, it should be reported and you're encouraged. Yeah, absolutely. What I would say is um what I heard um the EDC director inform you is that they put in a a protocol right for approval and so I think that's what he was saying was missing before and so that should resolve that right like so then I think the city employee if there was lacking approval

so basically It mirrors city policy with the added NDA and and the way that y'all have to travel and stuff like that. It's got stuff in there for the expenditures that are a little bit different. That's correct. Because we do travel a little bit more than city. So we want your job. Yeah. Exactly. Any questions? I don't have a question statement. I am so proud of you

and I am so proud. I'm looking over at Mike and because um last year when um uh we were not covering our tail and that's then when we started looking into things and I'm so proud of you guys for fixing this so that um we will do it the right way this going forward and I just thank them so much for doing that

a great job you want to vote on that policy item number four let's get a motion I'll make a motion to approve the EDC handbook. Can I get a second? I second. Is that okay, Lee? Uh, yes. I think so. I think perfect. It seems simple. I was just making sure by the handbook I think you're referring to the policies and procedures manual. Is that right? Yes. I'll make a motion to approve the policy and procedures manual. Madam Secretary, can we get a vote, please? Yes.

I I I All right, pass unanimously. Thank you. Yeah, good job. G I will say this for everybody and especially those people listening is that it is a new era here. It is a new relationship between EDC, the county, the city council, and our co-partners. It's taken a lot of work, but we are really, really in a good place with all of our relationships. Absolutely. Yeah.

Good job, everyone. All right. Well, believe it or not, that's it. Can we will just add this and I should have said it earlier when it came to the Anderson crossing project is that this is such a great movement for our city. It's going to open the door for some growth along the I30 corridor. It is going to be a blessing to All of us, we are all going to benefit, I think, from this. And there again, the meeting last night, I was so happy that we all came together. We answered all the questions. We gave everybody the opportunity to express everything they had to say and we came out with people more informed and in a better state and in a better place mentally over the relationship that we have with our co-partners. The way this council has conducted itself the way we have worked diligently to try to find every answer that needs to be given. No matter where you're from in this area, we owe it to everybody to thoroughly vet everything that comes before us and that's what we have tried to do and I think that's what we will continue to do in the future with your help. I ran into one of the commissioners this morning and um they specified that they loved the meeting last night. they hope we continue because it was such a joint um thing and and when I go back and think of some of the projects that we've done in the past, I think it would have

been wonderful if they had been on board with us back then. Uh so knowing that they're on board with having a joint relationship for the future is wonderful. So, um yay. And uh with all of that being said, I guess I can touch on one more small thing. Uh since we are entering a new era and I think everyone knows they can reach us, right? The council is willing to talk to anybody. Maybe reach out to us before you comment on Facebook or social media or something like that. If you want to speculate, reach out to us. Any of us will talk to you. Uh personal cell phones are on the, you know, they're on the web. Our email's on there. So we will be glad to talk about any details or questions that you you need answers.