Aug 23, 2023 AAHFC

OH, I'M SORRY.

I THOUGHT YOU

[00:00:01]

OKAY, WE ARE.

GOOD MORNING.

IT IS THE 23RD OF AUGUST,

[1. Meeting called to Order The AAHFC Board of Directors is meeting in accordance with Chapter 551 of the Texas Government Code (Open Meetings Act). As such, the Board of Directors reserves the right to retire into executive session concerning any of the items listed on this Agenda whenever it is considered necessary and legally justified under the Texas Open Meetings Act.]

IT'S ABOUT NINE RIGHT NOW.

AM WE'LL CALL THIS ALAMO AREA HOUSING FINANCE CORPORATION BOARD ORDER.

PLEASE SIGN US ALL YOUR, UH, ELECTRONIC DEVICES.

IF YOU'RE ATTENDING VIRTUALLY VIA IN ATTENDANCE.

WE HAVE TO BE ABLE TO SEE YOU AND HEAR YOU.

SO WE, IF YOU'RE MUTED, UH, BE SURE TO UNMUTE IF YOU'RE GONNA TAKE ACTION.

AND ALSO, WHOEVER CS IS, WE NEED TO BE ABLE TO SEE YOU OR YOU'RE NOT IN ATTENDANCE.

SO YOU GET A ROLL CALL, PLEASE? YES, SIR.

GOOD MORNING, JUDGE EVANS HERE.

MR. WOLVERTON IS ACCUSED.

JUDGE CAMACHO.

RICK CALLO FOR JUDGE CAMACHO.

ERIC AUSTIN IS ONLINE.

DEAR COMMISSIONER HARRIS, JUDGE, JUDGE JONES.

HERE.

JUDGE KROW.

JUDGE LUTZ.

JUDGE SLAR.

GREAT.

THANKS COUNCIL.

MS. BRADLEY, MS. VAN KERAN.

HERE.

JUDGE WHITMAN HERE.

WE HAVE A QUORUM.

THANK YOU.

DO WE HAVE ANY DECLARATIONS OF CONFLICT? OF INTEREST FOR BOARD MEETING? OKAY, NO DECLARATIONS.

[ Consent Agenda The consent agenda consists of items considered being of a routine nature and contains items recommended for approval by the Board Chair and the minutes from previous Board of Directors meetings. These items will be enacted in one motion, or any member of the Board may request that items be removed from the consent agenda and considered separately for purposes of discussion and voting.]

SITS THERE.

ANYONE LIKE TO APPROVE THE MINUTES MOVED.

SECOND.

SECOND.

DISCUSSION.

ALL IN FAVOR? AYE.

AYE.

AYE.

OPPOSED? NAY VOTE.

MOTION PASSES.

ITEM

[6. Consider and act upon the recommendation to approve the current 2023 AAHFC Financial Report – Julio Elizondo A. Balance Sheet B. Revenues and Expenditures]

THIS IS THE RECOMMENDATION FOR THE CURRENT 23 HH FFC FINANCIAL REPORT.

JULIO, GOOD MORNING.

THERE WE GO.

GOOD MORNING, MR. CHAIRMAN, MEMBERS OF THE BOARD, MY NAME IS M YOUR CHIEF FINANCIAL OFFICER AND HEY, IT'S GONNA BE A BRIEF, UH, PRESENTATION, WHETHER THERE'S NOT REALLY A PRESENTATION ALONG WITH IT, BUT JUST TO GO OVER THE FINANCIAL JULY, 2023 FINANCIALS.

SO OUR TOTAL ASSETS ARE AT SITTING AT 1 MILLION, UH, 1,000,030 7,000.

NOW, CURRENTLY, UH, WE DID RECEIVE A PAYMENT OR SOME ISSUANCE OF, OF BONDS OF 187,000 HIGH.

UM, SO THAT CURRENTLY CAME IN, UH, SITTING IN THIS CASH IN AUGUST.

YOU THAT WE DID GET THAT CONVERTED IN AUGUST TO A CD, UH, WITH SHARED BANK TRUST.

SO IN AUGUST FINANCIALS, YOU ALL WILL SEE, UM, THAT THE CASH HAS BEEN CONVERTED TO INVESTMENT AS A CD.

SO THAT DOES CON OTHER THAN INTEREST, UM, ON THE INCOME STATEMENT, ON THE REVENUE STATEMENTS, THE REVENUE EXPENDITURES, THERE REALLY ISN'T, UH, MUCH OTHER ACTIVITY.

AND, UH, THAT CONCLUDES THIS PRESENTATION.

IF YOU ALL HAVE ANY QUESTIONS, I'D BE MORE THAN HAPPY ANSWER.

YOU WERE, WE'RE GETTING A GOOD CD RATE FROM INSURANCE.

YES, IT WAS.

THEY GAVE US A THREE TO 5%, WHICH IS VERY COMPETITIVE RIGHT NOW.

ANY QUESTIONS? I'LL JUST MENTION JUDGE, THAT AS OUR FUND BALANCE FOR THE HOUSING FINANCE CORPORATION INCREASES, THAT IS AVAILABLE FOR THE USE OF OUR 12 RURAL COUNTIES.

SO IF THERE'S MATCHING FUNDS OR A PROJECT AS IT CONTINUES TO GROW, THAT CAN BE SOMETHING THAT THE BOARD COULD CONSIDER IN THE FUTURE.

IT IT, DOES THE PROJECT HAVE TO BE HOUSING? NO, SIR.

ANYTHING.

IT COULD BE A MATCH FOR BROADBAND.

IT COULD BE A MATCH FOR A STUDY FOR TRANSPORTATION.

IT COULD BE A MATCH FOR ANYTHING.

YES.

SO GOOD POSITION TO BEGIN.

THANK YOU.

UH, WE HAVE THIS AS AN ITEM FOR ACTION TO ACT UPON THE RECOMMENDATION TO PROVE FINANCIALS.

DO I HAVE MOTION? I I'LL MOVE TO, I MOVE DOON.

IS THAT CHIEF WHO, WHO MADE THE MOTION? NO, BUT I'LL SECOND.

I THINK IT WAS MS. VAN.

IT WAS, IT WAS ME.

SORRY.

SECOND.

I'LL SECOND.

YOU DISCUSSED ALL IN FAVOR? AYE.

AYE.

AYE.

A MOTION PASSES.

SEE ITEM SEVEN.

[7. Consider and act upon the Alamo Area Housing Finance Corporation (AAHFC) authorizing a Resolution evidencing the AAHFC’s intent to issue and sell its multifamily housing revenue bonds in the aggregate principal amount not to exceed $35,000,000 for the purpose of providing financing for the acquisition, construction, and equipping of the Walnut Springs Apartments, located at 2545 Guadalupe Street, in Seguin, Texas (the “Project”); authorizing an application for allocation of private activity bonds; making certain appointments and designations; and containing other provisions relating to the subject. - Jake Brown and Jim Plummer]

THIS IS ABOUT, UH, INTENT TO ISSUE MULTIFAMILY HOUSING BONDS NOT EXCEED $35 MILLION.

AND THIS WOULD BE WALNUT SPRINGS.

SO WHO'S GONNA PRESENT IT? SUMMERS GONE SUMMER.

I'LL START THE PRESENTATION

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GOOD MORNING.

GOOD MORNING.

OKAY, SO WE'RE HERE TODAY TO TALK ABOUT WALNUT SPRINGS, WHICH IS A LOW INCOME HOUSING TAX CREDIT PROJECT IN PARTNERSHIP WITH L D G DEVELOPMENT GROUP.

UM, JUST I GIVE LIKE A, A BRIEF OVERVIEW OF WHAT YOU'RE BEING ASKED TO DO IN THIS INSTANCE AND, AND KIND OF SOME OF THE BENEFITS OF THAT, UM, AS WELL AS ANY CONCERN, WELCOMING AND CONCERNS OR QUESTIONS.

UM, SO VERY BRIEFLY, THIS IS LOW INCOME HOUSING TAX CREDIT PROJECT.

IT'S FEDERAL PROJECT.

YOU GUYS HAVE, UM, PARTICIPATED IN A COUPLE OF THESE PROJECTS, UH, CON ROAD AND SKEEN, AS WELL AS THE DEAL THAT WE JUST RECENTLY CLOSED, WHICH WAS THE OSA, BANDERA AND, UH, CHARLES RIVER ROAD IN BURN.

UM, SO IT'S A FEDERAL PROGRAM.

IT'S A SUBSIDY THAT IS IN THE FORM OF TAX CREDITS THAT ARE AWARDED TO THE PROJECT.

THOSE TAX CREDITS ARE THEN SOLD ON THE MARKET TO INVESTORS, AND THAT'S A WAY FOR THE PROJECT TO RAISE EQUITY IN ORDER TO, UM, TO RAISE CAPITAL FOR THE PROJECT TO BE BUILT.

THE INVESTOR WOULD PARTNER, WILL ENJOY THE TAX CREDIT BENEFIT THAT THE, THE PROJECT DELIVERS AS WELL AS, UM, COMMUNITY REINVESTMENT ACT, UH, CREDITS AS WELL.

SO THERE'S KIND OF TWO WAYS THAT A HOUSING FINANCE CORPORATION SUCH AS A H F C CAN PARTICIPATE.

NUMBER ONE IS AS THE, THE ISSUER OF TAX EXEMPT BONDS.

AND THAT IS A REQUIREMENT FOR THESE DEALS.

IN ORDER TO RECEIVE THE TAX CREDITS, AT LEAST 50% OF THE PROJECT MUST BE FINANCED USING TAX EXEMPT BONDS.

AND WE'LL TALK A LITTLE BIT MORE ABOUT THAT IN A SECOND.

AND THEN THE SECOND WAY IS SERVING AS THE SOLE MEMBER OF THE GENERAL PARTNER AND THE LANDOWNER OF THE PROJECT.

AND THE BENEFIT THAT THAT BRINGS ABOUT IS A 100% PROPERTY TAX EXEMPTION THAT ALLOWS THE EXPENSES OF THE PROJECT TO BE LOWER IN ORDER FOR THEM TO, UM, NEED LESS INCOME.

AND BY NEEDING LESS INCOME, THEY, THEY'RE ABLE TO PROVIDE RENTS AT LOWER LEVELS.

AND SO YOU GUYS HAVE PARTICIPATED, THE H F C HAS PARTICIPATED IN, IN BOTH OF THESE WAYS.

UM, IN THE OAKS AT, UH, BANDERA AND CHARLES RIVER ROAD, YOU WERE THE BOND ISSUER AND THE PECAN GROVE, YOU WERE THE GENERAL PARTNER AND THE LANDOWNER IN THIS DEAL, WE'RE TALKING ABOUT DOING THOSE BOTH SIMULTANEOUSLY.

AND THAT IS A, A STRUCTURE THAT IS DONE STATEWIDE ALL THE TIME.

THIS IS NOT A UNIQUE STRUCTURE.

THIS IS SOMETHING THAT IS DONE EVERY DAY.

UM, AND, AND SO I WANTED TO TALK JUST A LITTLE BIT ABOUT THE BONDS, JUST TO REMIND EVERYONE HERE THAT THESE ARE PRIVATE ACTIVITY BONDS.

SO UNLIKE THE BONDS THAT, UM, YOUR CONSTITUENT GOVERNMENTS ARE ISSUING THAT ARE GENERAL OBLIGATION BONDS WHERE THERE IS VIABILITY IF THERE'S A PROBLEM, AND THAT THE DEBT SERVICE CAN'T BE PAID.

IN THIS INSTANCE, THESE BONDS ARE SECURED BY THE PROJECT ITSELF.

THEY'RE NOT GENERAL OBLIGATION BONDS.

SO IF THERE'S A PROBLEM THAT SERVICE CAN'T BE PAID, THE RECOURSE OF THE LENDER OR THE BOND HOLDERS TO GO AND TO FORECLOSE ON THE PROJECT, KIND OF LIKE A, AN USUAL MORTGAGE THAT YOU WOULD SEE IN, IN A SINGLE FAMILY HOME, FOR EXAMPLE.

SO IN TERMS OF RISK TO THE H F C, THE RISK IS MINIMAL, IS VERY, VERY LOW.

THEY CANNOT COME BACK AFTER THE, THE, UM, THE FINANCIAL, THEY, THEY CAN'T COME BACK AND GET THE MONEY FROM YOU GUYS TO PAY THE DEBT SERVICES.

GONNA GO TO THE PROJECT.

DEFINE MINIMAL RISK.

WHAT DO YOU MEAN THE RISK? MINIMAL THE RISK ARE ZERO.

OKAY, , THAT'S WHAT I WANTED TO HEAR.

, YES, I THE ECONOMIC RISK, RISK IN TERMS OF THAT PARTICULAR PROJECT IS ZERO.

THE RISK IS REPUTATIONAL.

THAT'S THE RISK.

UM, SO THAT'S KIND OF THE, THE TAX EXEMPT BOND SIDE.

AND THEN ON THE GENERAL PARTNER SIDE, UM, YOU ARE HOLDING THEM FOR THE PROJECT.

YOU'RE EARNING A FEE TITLE TO THE PROJECT, TO THE LAND, AND THEN ENTERING INTO A LONG-TERM LEASE WITH THE TAX CREDIT PARTNERSHIP THAT'S MADE UP OF THE INVESTOR LIMITED PARTNER, THE ONE WHO BUYS THE TAX CREDITS.

THE DEVELOPER WILL HAVE A SPECIAL LIMITED PARTNER AND THEY'RE GONNA EXERCISE SOME LEVELS OF CONTROL AND THEY'RE GONNA BE RESPONSIBLE FOR THE DAY-TO-DAY OPERATIONS.

AND THEN THE H F C WILL FORM A SINGLE MEMBER LIMITED LIABILITY COMPANY THAT WILL SERVE AS THE GENERAL PARTNER, AND THAT ALLOWS THE PROJECT TO ENJOY 100% PROPERTY TAX EXEMPTION.

AND SO THOSE ARE KIND OF THE TWO THINGS WE'RE LOOKING AT HERE.

UM, WHAT WE'RE ASKING YOU TO DO TODAY IS TO PASS TWO NON-BINDING RESOLUTIONS.

ONE IS GOING TO BE FOR THE PROJECT TO GO GET IN LINE WITH THE TEXAS BOND REVIEW BOARD, AND THAT'S TO RECEIVE WHAT'S CALLED ALLOCATION FOR THE PRIVATE ACTIVITY BONDS TO BE ISSUED.

THERE'S A LOTTERY THAT HAPPENS EVERY YEAR IN NOVEMBER, AND SO WE'LL APPLY TO THE TEXAS BOND REPORT.

THEY WILL EXECUTE THEIR LOTTERY IN NOVEMBER.

PROJECT WILL BE ASSIGNED A NUMBER AND IT WILL BE GIVEN KIND OF AN ORDER IN WHICH IT WILL RECEIVE BONDS.

BECAUSE THESE BONDS ARE

[00:10:01]

SO DEPENDING ON WHERE YOUR LOTTERY INVOLVE FALLS IS WHEN YOU'RE GONNA GET YOUR ALLOCATION.

IT MAY TAKE A LITTLE BIT OF TIME OR IT MAY NOT.

AND THEN FROM THAT POINT IN TIME, THERE'S SIX MONTHS THAT THE DEVELOPER HAS TO CLOSE THE PROJECT.

SO THAT'S RESOLUTION NUMBER ONE.

AND AGAIN, IT'S NON-BINDING.

THESE ARE ALL SUBJECT TO NEGOTIATION OF THE TERMS THAT ARE ACCEPTABLE TO ALL PARTIES, AS WELL AS, UM, FINAL DOCUMENTS TO MAKE SURE THAT THE DOCUMENTS ARE, YOU KNOW, MAKING SURE THERE'S NO RISK TO THE RISK TO THE H F C AND MAKING SURE THAT EVERYTHING IS AS IS AS YOU WANT IT TO BE.

THE SECOND RESOLUTION IS THE, THE GENERAL PARTNER RESOLUTION.

WE'RE ASKING YOU TO PARTICIPATE TO BE THE MAIN LANDOWNER AND THEN TO SERVE AS THE GENERAL PARTNER.

AND IN EXCHANGE FOR ALL OF THIS, LET'S TALK ABOUT THE FUND STUFF, WHICH IS THE ECONOMIC BENEFIT.

UM, YOU WOULD BE RECEIVING ONE PER PERCENT OF THE BONDS THAT ARE ISSUED AS AN ISSUE.

HER FEE, IN THIS CASE, THEY'RE ASKING FOR $35 MILLION UP TO $35 MILLION OF BONDS.

SO THAT WOULD BE UP TO 350, $50,000.

THAT ISSUER FEE IS, ISSUER FEE IS PAID AT, AT CLOSING.

UM, ADDITIONALLY IN RETURN FOR SERVING AS THE LANDOWNER AND THE GENERAL PARTNER, YOU WOULD RECEIVE 40% OF THE DEVELOPER FEE AS WELL AS 40% OF THE CASH FLOW FROM THE PROJECT, THE ANNUAL CASH FLOW, AND 40% OF THE PROCEEDS FROM ANY SALE OF THE PROJECT OBJECT IN THE FUTURE.

SO WHAT, UM, L D L D G HAS PROVIDED TO US FOR THEIR NUMBERS SO FAR IS $350,000 ISSUER FEE, $2.4 MILLION IN DEVELOPER FEE.

AND THAT HAS PAID OVER 15 YEARS AND THEN APPROXIMATELY $2 MILLION IN CASH FLOW OVER THE NEXT 15 YEARS.

UM, AND THEN I'LL LET JAKE COVER THE REST OF THE PROJECT, KIND OF THE MORE SPECIFICS AS IN TERMS OF THE INCOME BANDS THAT THEY'RE, THEY'RE COVERING AS WELL AS ANY OTHER, UM, AMENITIES AND DETAILS ON THE PROJECT.

I HAVE A QUICK COUPLE OF QUESTIONS.

YES.

BELIEVE IT OR NOT, , WHAT ABOUT THE COUNTY AND THE CITY? ARE THEY SUPPORTIVE OF THE PROJECT? I, I CAN TALK ABOUT THAT.

OKAY.

BECAUSE THE, THAT'S THE GAME CHANGER BECAUSE WE'RE TAKING 35 MILLION BUCKS POSSIBLE OUT THEIR TAX BASE AND WE'RE GONNA BE THE OWNER.

JULIO, DO WE SHOW THAT ON OUR BALANCE SHEET FOR A A C? UM, THAT'S A QUESTION I'LL, I'LL GET WITH, UH, JIM, JIM PLUMMER AND SEE HOW TO FIGURE THIS OUT.

WE DID ONE OF THESE BEFORE WE, AND WE DON'T SHOW IT ON OUR BALANCE SHEET.

I DID, I REMEMBER SPEAKING TO OUR AUDITORS LAST YEAR ABOUT PUTTING THE LAND ON OUR BALANCE SHEET AND THEY MENTIONED NO.

UM, BUT I COULD VERIFY AGAIN WHAT SHOULD BE ON OUR BALANCE SHEET.

I DID, I DID TALK TO 'EM LAST YEAR.

UM, I THINK WE NEED TO, I'LL FOLLOW UP THEM AGAIN AND MAYOR DODGEN IS ON.

SO AFTER JAKE'S PRESENTATION, PERHAPS MAYOR DODGEN WOULD LIKE TO SPEAK.

THANK YOU.

JAKE.

CAN YOU GUYS HEAR ME OKAY? YEP.

UM, SO TO ANSWER YOUR QUESTION A MOMENT AGO ABOUT THE POLITICAL SUPPORT, I'LL TELL YOU THAT WE'VE HAD, OR I'VE HAD SEVERAL CONVERSATIONS WITH COUNCIL MEMBERS AND ACTUALLY BRIEFLY VISITED WITH MAYOR DUNN PROBABLY SIX WEEKS, WEEKS AGO ABOUT IT.

AND THE FEEDBACK WE'VE GOTTEN HAS BEEN POSITIVE.

HOWEVER, THERE'S NOT BEEN, THERE NOT AN OFFICIAL VOTE BY THE COUNCIL YET.

THAT'S KIND OF THE NEXT STEP IN THIS PROCESS IS WHAT'LL HAPPEN IS WE'LL MOVE FORWARD WITH A COUNCIL AGENDA DATE SOMETIME HERE, I WOULD SAY PROBABLY THE NEXT MONTH OR TWO.

UH, AND THEY'LL CONSIDER A RESOLUTION SIMILAR TO WHAT YOU GUYS ARE CONSIDERING, CONSIDERING TODAY.

BUT, UM, YOU KNOW, WE'LL BRIEF THEM ON THE ENTIRE PROJECT IN A FORMAL, FORMAL SETTING AND THEN THEY'LL, THEY'LL PUT IT TO A VOTE AT THAT POINT.

SO, UM, IN SUMMARY, THE FEEDBACK HAS BEEN PO POSITIVE, BUT I DON'T WANT TO SIT HERE AND SAY, YOU KNOW, FOR ABSOLUTE CERTAIN CERTAINTY THAT THEY'VE APPROVED IT BECAUSE IT HAPPENED NIGHT.

YEAH.

SO WHAT, WHAT ABOUT THE COUNTY? THE COUNTY, UH, TO BE TOTALLY TRANS TRANSPARENT, I STILL NEED TO VISIT WITH THEM.

TYPICALLY, WHEN WE DO PROJECTS THAT ARE JUST IN THE CITY LIMITS, WE ONLY DEAL OR ONLY VISIT WITH THE LOCAL, LOCAL CITY GOVERNMENT.

BUT IN THIS INSTANCE, I RECOGNIZE THE POLITICAL I MANS THAT COME WITH ACOG AND UH, OBVIOUSLY IF YOU, YOU WOULDN'T BE ASKING IF YOU DIDN'T WANT ME TO VISIT WITH THE COUNTY.

SO I'M MORE THAN HAPPY, HAPPY TO DO THAT AND WE'LL DO THAT.

IT IMPACTS THEIR TAX PICTURE.

SURE, UNDERSTOOD.

LIKE THAT SHOULD HAVE BEEN DONE BEFORE WE CONSIDER THESE RESOLUTIONS THAT WE HAVE SUPPORT.

YES, SIR.

AND THERE'S ONE REASON, UH, BECAUSE WHEN THIS WAS FIRST DISCUSSED, IDEALLY IT WOULD BE COMING TO THE HOUSING FINANCE CORPORATION IN SEPTEMBER, BUT BECAUSE OF OUR ACOG'S CALENDAR, THERE WAS NOT AN OPPORTUNITY TO REALLY HAVE THIS MEETING IN SEPTEMBER.

SO WE,

[00:15:01]

AND I WOULD SUGGEST THAT THEY ALL COULD BE CONTINGENT ON THE APPROVAL OF THE CITY.

I, I WOULD ACTUALLY WELCOME.

I MEAN, I THINK THAT'S IMPORTANT FOR NO OTHER REASON THAT, YOU KNOW, THE COUNTY AND THE CITY, BUT IS PARAMOUNT IN ALL OF THESE TYPES OF TRANSACTIONS.

AND TWO, REPUTATIONALLY, I DON'T PERSONALLY, I DON'T WANT TO PUT YOU GUYS IN A POSITION OR ME IN A POSITION WHERE WE'RE ACTING LIKE THAT WE'RE DOING SOMETHING WITHOUT HAVING THAT APPROVAL DONE, DONE FIRST.

SO I, I WOULD WELCOME IT BEING CONTINGENT ON FOLLOWING APPROVAL QUESTIONS FOR ANYBODY.

UH, HE HAS HIS PRESENTATION ABOUT THE PROJECT.

YEAH, I'M HAPPY TO GO THROUGH THE PRESENTATION, THE THANK.

OKAY.

UM, SO, SO WE'RE, I'LL JUST GIVE YOU GUYS KIND OF A HIGH LEVEL PROJECT, PROJECT SPECIFICS.

UM, SO AS SUMMER MENTIONED, WE'RE TALKING ABOUT WALNUT SPRINGS, WHICH IS OUR HOPEFULLY PROPOSED TO BE SECOND, SECOND DEVELOPMENT IN SCHEME.

UM, I THINK THERE'S SOME NEW FACES ON THE BOARD.

SO JUST CAN YOU GUYS, FIRST A HIGH LEVEL OVERVIEW OF L D G AND, AND WHO WE ARE AND WHAT WE'RE, WE'RE ALL ABOUT FOR THOSE OF YOU WHO DON'T KNOW.

SO, UH, WE'RE BASED IN LOUISVILLE, KENTUCKY.

WE, UH, SPECIALIZE IN MULTIFAMILY, PARTICULARLY, PARTICULARLY AFFORDABLE AND WORKFORCE HOUSING.

SO THE DEVELOPMENTS THAT WE CAN, UM, WITH YOU GUYS BOTH, UM, IN SGU AND NEW, NEW BRAUNFELS ARE KIND OF WHAT I WOULD DESCRIBE AS, AS OUR WHEELHOUSE.

YOU KNOW, YOU'VE GOT A, A MIXTURE OF, OF BOTH WORKFORCE AND AFFORDABLE PRODUCT, AND THAT'S JUST, THAT'S, THAT'S REALLY WHAT WE DO ALL OVER TEXAS AND REALLY ALL OVER THE SOUTH SOUTHEASTERN PART OF THE UNITED STATES.

UM, TO DATE, WE'VE GOT OVER 21,000 MULTIFAMILY UNITS.

UM, AND OVER HALF, HALF OF THOSE ARE IN TEXAS ALONE.

AND AGAIN, FOCUSING ON CLASS A MULTI-FAMILY WORKFORCE, MOST AFFORDABLE.

AND WE DO, WE DO ALSO, WE ALSO DO A LITTLE BIT OF MARKET.

OKAY, GREAT.

UM, ONE LAST THING I'LL HIGHLIGHT JUST ON KIND OF OUR OVERVIEW, AND I THINK IT'S, IT'S IMPORTANT TO SHARE IS THAT WE ARE, WE OPERATE AS A LONG-TERM OWNER.

SO OUR, OUR STRATEGY IS, IS A VERY STRICT DEVELOP AND HOLD STRATEGY.

SO THAT, THAT'S IMPORTANT TO US BECAUSE FRANKLY, THERE'S NO WAY FOR WAY FOR US TO MAINTAIN THE QUALITY AND MAINTAIN THE AFFORDABILITY, AFFORDABILITY AND HOLD IT TO THE STANDARD THAT WE BELIEVE IT SHOULD BE HELD TO WITHOUT BEING IN IT FOR, FOR THE LONG TERM.

SO I'M, I'M HOPEFUL, I'M HOPEFUL THAT YOU GUYS WILL FIND COMFORT IN THAT.

UH, JUST A HIGH LEVEL DEVELOPMENT SUMMARY.

AGAIN, THIS, THIS IS IN SEIN, UM, IT'S ON NORTH WATER WATER LOOP STREET.

SO IF YOU GUYS ARE FAMILIAR WITH SEIN, AND THIS IS PRETTY CLOSE, CLOSE TO I 10, JUST BEHIND HOME DEPOT THAT SITS ON THE SOUTH SIDE OF I 10.

IT'S CURRENTLY ZONED FOR, FOR LIGHT INDUSTRIAL.

SO MULTIFAMILY IS NOT PERMITTED BY RIOT UNDER LIGHT INDUSTRIAL ZONING.

SO THAT'S, THAT'S ANOTHER PIECE OF THIS IS THAT WE'LL HAVE TO GO THROUGH THE, THE CITY'S ZONING CHANGE, CHANGE PROCESS AND THEY'LL OBVIOUSLY HAVE TO APPROVE THAT.

UH, IN ORDER FOR THE DEVELOPMENT DEVELOPMENT TO COME TO LIFE, I CAN TELL YOU THAT WE SUBMITTED THE APPLICATION FOR THE ZONING CHANGE AND IT'S CURRENTLY IN PROCESS, BUT WE HAVE YET TO BE SCHEDULED FOR, UM, A PLANNING AND ZONING COMMISSION, COMMISSION HEARING DATE OR CITY COUNCIL STATE.

BUT THAT, THAT IS INPRO PROCESS.

UM, WHAT I WOULD DESCRIBE AS A RELATIVELY LOW DENSITY DEVELOPMENTALLY CONTEMPLATING A HUNDRED EIGHTY TWO TWO UNITS.

UH, BUT IT WILL BE A MIX, A MIX OF 1, 2, 3, AND FOUR BEDROOM UNITS, WHICH IS VERY MUCH A CAN TO HELP HOW WE DID THINGS AT ENT.

UH, I MEAN, AS FAR AS THE AFFORDABLE AFFORDABILITY COMPONENT, A HUNDRED PERCENT OF THE UNITS, UNITS WILL BE RESTRICTED TO 60% OF THE AREA MEDIAN INCOME, WHICH AGAIN SOUND LIKE A BROKEN RECORD IS, IS THE SAME AS WHAT WE DID ON GROW OF THE EXISTING DEVELOPMENT THERE.

AMENITIES, AND I'LL SHOW YOU GUYS PICTURES HERE A SECOND.

A POOL, CLUBHOUSE, FITNESS CENTER, BUSINESS CENTER.

UM, YOU'LL SEE THE PHOTOS OF THE END UNIT AMENITIES AS FAR AS BRANDING, COUNTERTOPS AND ENERGY EFFICIENT APPLIANCES WOULD LOOK FOR, AGAIN, BROKEN RECORD, BUT THIS VERY, VERY SIMILAR, UM, IF NOT ALMOST IDENTICAL, IDENTICAL TO THE, UH, EXISTING DEVELOPMENT JUST SOUTH OF T L U.

AND IT'S A GAME, UH, THIS IS JUST A SATELLITE VIEW JUST TO KINDA SHOW YOU GUYS WHERE IT IS.

UH, I DON'T, FOR SOME, FOR SOME REASON IT'S NOT SHOWING THE HOME DEPOT, UM, LABEL ON THERE, BUT JUST ON THAT PIN AT THE TOP OF THE SCREEN, HOME DEPOT IS JUST TO THE NORTH OF THAT.

AND, AND OBVIOUSLY C I 10 THERE.

SO, SO SITTING ON THE NORTH SIDE OF TOWN, PRETTY CLOSE TO 10, VERY ROUGH CONCEPTUAL SIDE PLAN THAT WE'VE PUT TOGETHER.

UH, AT THIS POINT YOU'VE GOT SIX RESIDENTIAL BUILDINGS AND ONE CLUBHOUSE BUILDING ACROSS APPROXIMATELY NINE ACRES.

UM, AND THEN THIS IS THE, UH, TABLE WE PUT TOGETHER JUST TO KIND OF GIVE YOU GUYS AN IDEA AND UNDERSTANDING OF KIND OF WHAT YOU'RE BEING ASKED TO DO.

AND I WON'T, I WON'T GO INTO THIS BECAUSE SOMEONE DID AN EXCELLENT JOB A MOMENT AGO, COVER COVERING IT.

BUT AGAIN, UM, FOR ALAMO, FOR YOU GUYS, YOU KNOW, WE'RE ASKING FOR YOU GUYS TO PARTICIPATE IN THE PROJECT AS ABOUT

[00:20:01]

UM, I DON'T KNOW IF SUMMER TOUCHED ON THIS, BUT I'LL TOUCH ON IT.

YOU'RE, YOU'RE ALSO BEING ASKED, AND I DON'T THINK THERE'S A RESOLUTION THAT YOU'RE BEING ASKED TO APPROVE OR ANYTHING LIKE THAT, BUT, UH, ASSUMING THIS DEVELOPMENT DEVELOPMENT COMES TO FRUITION, YOU'LL BE ASKED TO SERVE AS THE GENERAL CONTRACTOR ON PAPER.

AND, AND THE PURPOSE OF THAT, THAT IS JUST TO FACILITATE A SALES TAX EXEMPTION EXEMPTION ON THE PURPOSE OF THE PURCHASE OF THE CONSTRUCTION CONSTRUCTION MATERIALS.

BUT THAT BEING SAID, THERE, THERE WILL ALSO BE A PRIME SUBCONTRACTOR, WHICH WILL BE EXPERT, EXPERT DESIGN AND CONSTRUCTION, OUR AFFILIATE THAT WILL ACTUALLY DO THE WORK.

SO REALLY YOU GUYS ARE JUST, WOULD BE SERVING AS A GENERAL CONTRACTOR ON PAPER, JUST FOR THE PURPOSE OF, OF GETTING A LITTLE RELIEF ON SALES TAX.

UH, AND THEN AS FAR AS US ON THE L D G SIDE, WE REALLY, OUR RESPONSIBILITY IS JUST ABOUT EVERYTHING.

YOU KNOW, WE'RE RESPONSIBLE FOR OBTAINING ALL THE GOVERNMENT APPROVALS AND, YOU KNOW, GOING THROUGH THE ENTITLEMENT PROCESS, THE PERMITTING PROCESS, CONSTRUCTING THE THING, MANAGING THE THING, OPERATING THE THING, UM, YOU KNOW, THAT'S, WE'RE WE'RE, IT'S NO DIFFERENT, IT'S DIFFERENT THAN IT WOULD BE IF THIS WAS KIND OF A, WHAT I WOULD CALL A PLAIN CONDITIONAL TRANSACTION.

YOU KNOW, WE'RE, WE'RE ON THE HOOK AND RESPONSIBLE FOR, FOR DOING ALL THE THINGS ER WOULD IN A REGULAR TRANSACTION.

UM, AND I WON'T GO INTO THE DETAILS.

SOME ARE DID THIS ALREADY, UM, TALKING ABOUT THE FEES PAID TO, TO YOU GUYS, BUT JUST HIGH LEVEL, YOU GUYS WOULD GET AN ISSUER FEE, UM, SHARE THE DEVELOPER FEE SHARE IN CASH FLOW SALE IN, IN EVENT THERE WAS A FIN, UM, PROCEEDS YOU'D SHARE IN THAT SHARE IN THE SALE PROCEED PROCEEDS AND IT WOULD ALL BE DIVVY UP AS A 60 40 SPLIT SPLIT, 60% L G AND 40% TO A H S WHAT'S THE ANTICIPATED INCOME TO THE CORPORATION? SO THE ANTICIPATED INCOME, UH, FROM CASH FLOW OVER THE 15 YEAR PERIOD IS APPROXIMATELY $2.6 MILLION.

UH, AND THIS IS, I INCLUDE THIS RENDERING BECAUSE THIS IS THE ONE THING THAT WILL BE A LITTLE BIT DIFFERENT, UM, THAN PECAN.

SO WE'RE ACTUALLY USING A DIFFERENT ARCHITECT THAN WE USED ON PECAN GROVE.

UM, AND WE WORK GROSS ARCHITECTS.

WE WORK WITH ALMOST, ALMOST EXCLUSIVELY IN THE AUSTIN AREA.

UH, WE'VE ENTRUSTED THAT THE DESIGN OF THIS PROJECT ON THE SURFACE, IT PROBABLY REALLY WON'T LOOK THAT DIFFERENT.

UM, YOU, YOU GUYS ARE PROBABLY WHAT THIS LOOKS JUST LIKE, AND IT IS VERY, VERY SIMILAR, BUT I JUST WANTED TO MAKE A POINT TO INCLUDE THIS.

UM, A DIFFERENT, WE UPDATE RENDERING THE COLORS YOU SEE ON THE RENDERING OR NOT SET IN STONE.

WE WILL NOT BE PUTTING BLACK EXTERIOR ON THAT.

THE SUN WILL BEAT THE HECK OUT THAT IT WILL FADE AFTER ONE SUMMER.

UH, BUT THIS IS, I JUST, I JUST WANNA INCLUDE THIS TO SEE.

YOU GUYS COULD SEE IT AND WE'RE AWARE THAT WE'RE USING A DIFFERENT, AND THEN THE LAST FEW SLIDES ARE JUST PICTURES OF THE INTERIOR AND THE EXTERIOR.

THEY WILL LOOK VERY FAMILIAR BECAUSE THEY'RE FROM THEON GROVE.

UM, YOU GUYS COULD SEE THAT THE AMENITIES I WAS TALKING ABOUT A MOMENT AGO WITH THE, THE GRANITE COUNTERTOPS, FLOORING, ENERGY EFFICIENT APPLIANCES, DARK CABINETRY, IT WILL LOOK ALMOST IDENTICAL.

IDENTICAL, UH, ASSUMING IT COMES TO FRUITION, IT WILL LOOK ALMOST IDENTICAL.

ASON GROVE.

UM, YOU SHOULD ALSO LOOK FAMILIAR JUST EXTERIOR PHOTOS OF AMENITIES AND COMMON AREAS.

UM, ALL FOUR OF THESE PHOTOS ARE FROM PECAN GROVE.

THAT'S IT FOR ME.

I'M MORE THAN HAPPY TO ANSWER, ANSWER ANY QUESTIONS YOU GUYS MAY.

ANY QUESTIONS? WHO OWNS IT? I ACTUALLY HAVE A QUESTION.

GO, GO AHEAD.

I CAN'T SEE WHO'S TALKING.

OKAY.

IT IS, IT IS.

YES.

UH, SO YOU, JAKE, YOU MENTIONED THAT WE WOULD BE LISTED AS THE GENERAL CONTRACTOR.

THAT'S NOT SOMETHING THAT I REMEMBER HAPPENING WITH THEON GROVE OR BANDERA OAK TO THE OTHER, THE GROVE PROJECT.

IS THAT JUST SOMETHING THAT WE JUST BRIEFLY TOUCHED ON AND IT JUST JUMPED OUT THIS TIME? OR IS THIS NEW? IT IS NOT NEW.

WELL, I CAN'T SPEAK TO THE BAND PROPERTY PROPERTY.

I CAN TELL YOU FOR THE TWO THAT WE'VE WORKED ON WITH YOU GUYS, BOTH, BOTH THE NEW BROTHELS AND SE THAT YOU GUYS HAVE, GUYS HAVE SERVED AS THE GENERAL CONTRACTOR ON BOTH OF THOSE.

UM, I, I MADE A POINT TO HIGHLIGHT TODAY JUST BECAUSE IN MY CONVERSATION, CONVERSATION ABOUT THE FEES, I JUST WANTED TO MAKE SURE THAT YOU GUYS UNDERSTOOD THAT YOU'D BE GETTING A FEE FOR THAT.

BUT, BUT YOUR, YOUR ROLE AS A GENERAL, A GENERAL CONTRACTOR ON THIS WOULD BE NO DIFFERENT THAN THAN YOUR ROLE ON, ON THE PREVIOUS TRANSACTIONS WITH US.

SO IT DOESN'T ADD ANY KIND OF ADDITIONAL LIABILITY FOR THE, FOR THE CORPORATION OR ? IT DOES NOT, NO.

NO.

AND THAT WAS MY POINT AND, AND JUST KINDA, I SHOULD EXPANDED ON IT FURTHER, BUT THAT WAS MY POINT MENTIONING THE PRIME SUBCONTRACT.

UM, WE TAKE ON ALL THE LIABILITY, ALL THE COMPLETION GUARANTEES, THE COMPLETION RISK.

UM, IT REALLY AND TRULY IS, IS JUST FOR THE BENEFIT OF OBTAINING THE SALES TAX EXEMPTION ON THE PURPOSES MATERIALS.

OKAY, THANK YOU FOR THAT CLARIFICATION.

I APPRECIATE THAT.

YOU BET.

APPRECIATE THE QUESTION.

ANY OTHER QUESTIONS?

[00:25:01]

DO YOU OWN THAT OR DO YOU HAVE CONTRACT? WE HAVE ANOTHER CONTRACT.

WE NOT OWN IT YET.

WE'VE GOT AN OPTION TO PURCHASE, PURCHASE.

UH, THAT OPTION I THINK GOES, GOES THROUGH, I WANT TO SAY AUGUST OF NEXT YEAR.

SO ABOUT A YEAR FROM NOW.

AND YOU SAID THE CURRENT ZONING WAS LIGHT INDUSTRIAL? LIGHT INDUSTRIAL.

YEAH, I WILL, I WILL ADD THAT, YOU KNOW, I MENTIONED A MOMENT AGO, GOTTA GO THROUGH THE ZONING CHANGE PROCESS WITH THE CITY AND YOU KNOW, THAT'S OBVIOUSLY THEM DECIDE ON WHETHER OR NOT THEY APPROVED THE ZONING CHANGE.

BUT I WILL SAY THAT BOTH THE PREVIOUS COMP PLAN AND THE COMP PLAN FOR THE CITY, UH, ONE OF THE USES THIS PARCEL IN THIS PART OF TOWN, THIS PART TOWN IN PARTICULAR THEY CALL FOR IS MULTIFAMILY.

SO, SO AGAIN, THAT'S NOT A GUARANTEE THAT WILL BE APPROVED FOR MULTIFAMILY ZONING ZONING, BUT AT LEAST WE'RE, WE'RE WE'RE BEING CONSISTENT WITH WHAT THE COMP PLAN RECOMMENDS.

UH, DO YOU KNOW WHAT THE CURRENT TAXABLE VALUE IS OF THAT PROPERTY? IT'S NOMINAL.

UM, AND I'M ALMOST CERTAIN THERE'S AN AGRICULTURAL EXEMPTION ON IT.

UM, SO I, I DON'T KNOW.

SO I DON'T DUNNO THE EXACT AMOUNT.

I CAN GET THAT FOR YOU, BUT I'M GUESSING IT'S VERY, I THINK THAT THAT'S SUFFICIENT.

I'M SORRY, YOUR ANSWER'S SUFFICIENT.

OKAY, THANK YOU.

THAT'S ALL I HAVE.

ANY OTHER QUESTIONS MAYOR DODGE MIGHT DO? YES, THIS IS, UM, MAYOR DODGE AND JAKE AND I HAVE NOT SPOKE DIRECTLY AND WE HAVE NOT, UM, ADVISED THE COUNCIL, BUT I WILL TELL YOU THAT OUR MANUFACTURING GROUP IS REALLY, THEIR MAJOR CONVERSATIONS HAVE BEEN ABOUT AFFORDABLE HOUSING AND, UM, THE MEDIUM INCOME IN S IS IS A LITTLE UNDER 50,000 AT THE MOMENT.

AND SO THE 60% WOULD BE A LITTLE UNDER 30,000, WHICH WOULD BE OUR, SOME OF OUR BEGINNING WORKERS AND SOME OF OUR LINE WORKERS AND THOSE SORTS OF THINGS.

SO I THINK IT NO CONVERSATION AND WE HAVE HAD NO CONVERSATION WITH THE COUNTY.

UM, SO I DO THINK THOSE TWO THINGS DEFINITELY NEED TO HAPPEN.

I AGREE.

100 FRACTION.

WE HAVE A MOTION.

DO WE, DO WE NEED, I MOVE FOR APPROVAL CONTINGENT ON THE AGREEMENT BETWEEN THE CITY WITH L D G AND THE COUNTY AND L D G.

HAVE A SECOND.

I'LL SECOND THAT.

JUDGE JONES, ANY DISCUSSION? ALL IN FAVOR? AYE.

A AYE AYE.

AYE.

AYE.

OPPOSED? NAYYY PASSES SUBJECT TO RIGHT, JAKE? THAT'S RIGHT.

RIGHT.

THAT'S IMPORTANT.

WE'RE ALL POLITICIANS, RIGHT? THAT'S RIGHT.

.

[8. Project update on the status of the Pecan Grove Apartment complex project located at 1231 W. Court St., Seguin, Guadalupe County, TX. - Jake Brown ]

ITEM EIGHT.

THIS IS THE UPDATE ON, UH, .

JAKE DOESN'T NEED TO GO AWAY.

OH, I'M STILL GOING.

OH, I FORGOT.

I'VE GOT TWO MORE PRESENTATIONS HERE.

UPDATE ON BACAN GROVE.

IT'S DONE.

THAT'S, THAT'S THE PRESENTATION.

SO, BUT NO, I'M HAPPY TO TALK ABOUT IT.

UM, I'D SAY IT'S DONE, THERE'S A FEW MINOR THINGS ON BACAN GROVE, UM, JUST AS FAR AS KIND OF LANDSCAPING AND, UM, I WAS ORIGINALLY GONNA INCLUDE PUNCH LIST STUFF, BUT THAT'S, THAT'S ALL BEEN TAKEN CARE OF AT THIS POINT.

SO IT'S REALLY JUST KIND OF BUTTON IT UP.

THE LANDSCAPING, IF YOU GUYS HAVE NOT DRIVEN BY AND SEEN THE PROPERTY YET OR, OR WE'RE UNABLE TO ATTEND THE FORMAL GRAND OPENING EVENT, I WOULD ENCOURAGE YOU GUYS TO GO BY.

I'M MORE THAN HAPPY TO SET ASIDE TIME, TIME TO GIVE YOU GUYS A PERSONAL TOUR.

UH, I TOLD DIANE AT, AT THE GROUNDBREAKING, AT GROUNDBREAKING AT THE GRAND OPENING, UM, THAT I, I WASN'T BLOWING SMOKE.

I REALLY DO THINK THIS IS THE BEST, BEST LOOKING PROPERTY IN OUR, OUR PORTFOLIO.

AND IT IS ABSOLUTELY MAGNIFICENT FROM, FROM EVERYTHING FROM THE LAYOUT, THE POOL AREA, THE CLUBHOUSE, THE INTERIOR FINISHES, THE COUNTERTOPS.

I MEAN, IT IS 10, 10 OUT 10.

I I'M VERY, VERY PLEASED WITH THE WORK THAT WE'VE DONE WITH, WITH YOU GUYS ON THIS ONE IN PARTICULAR.

I COULDN'T BE MORE HAPPY ABOUT IT.

UM, BUT WE'RE, I WOULD SAY AT THIS JUNCTURE WE'RE PROBABLY A HUNDRED PERCENT COMPLETE.

UM, I KNOW IT SAYS AUGUST, 2023 AND IT'S AUGUST, 2023, BUT I, I WOULD GO AHEAD AND AND AND MARK IT AS A HUNDRED PERCENT COMPLETE AT THIS POINT.

UM, REALLY KIND OF THE NEXT STEPS FOR US IS JUST TO KIND OF FINISH UP THE UP PROCESS AND THEN WE'LL TRANSITION, UM, INTO OUR STABILIZATION CONVERSION PROCESS.

AND REALLY WHAT, WHAT THAT MEANS, UH, KIND OF THE THRESHOLD REQUIREMENT TO CONVERT A LOAN FROM A CONSTRUCTION LOAN TO THE PERMANENT PHASE LOAN, UM, IS FOR THE PROPERTY TO BE 90% OCCUPIED FOR 90 DAYS.

AND SO THERE'S SEVERAL OTHER S SMALLER REQUIREMENTS, I SHOULDN'T SAY SMALLER, THERE'S SEVERAL OTHER REQUIREMENTS THAT COME WITH THAT, BUT THE MAJOR T THRESHOLD IS 90% OCCUPIED FOR 90 DAYS.

WE HIT 90% LAST MONTH.

OH YEAH, WE BLEW AROUND.

THIS IS ONE OF THE FASTEST LEASE UPS I'VE SEEN.

I 10 HERE

[00:30:01]

SO THAT, THAT ALONE SPEAKS, SPEAKS TO THE DEMAND FOR THE AFFORDABLE HOUSING AND SKI AND, AND JUST KIND OF THE LOCAL AREA.

BUT, UM, YOU KNOW, I WOULD EXPECT, EXPECT, UH, I WOULD EXPECT THAT EITHER BY THE END OF THE YEAR OR BEGINNING OF NEXT WE'LL HAVE DONE THAT CONVERSION PIECE.

UM, CONVERTING FROM CONSTRUCTION PHASE TO PERMANENT PHASE ON THE LOAN SIZE.

UM, AND THEN AT THAT POINT THERE BE DEVELOPER FEES, NEXT INSTALLMENT OF DEVELOPER FEE THAT'LL BE PAID TO BOTH OF US.

UM, AND I DON'T HAVE THAT EXACT NUMBER.

IN FACT, I WAS INTENTIONAL IN NOT INCLUDING IT, UM, ON THIS PRESENT PRESENTATION BECAUSE AS WE MOVE FORWARD IN THE STABILIZATION CONVERSION PROCESS, I'LL PROBABLY COME BACK, I DO ANOTHER PRESENTATION ONCE WE, I GOT AN DEFINITIVE NUMBER THERE.

SO IT'S AROUND TWO 50.

YEAH, APPROXIMATELY.

BALLPARK, BALLPARK FIGURE.

UM, BUT THAT'S KIND OF THE NEXT STEP.

I MEAN, THIS, THIS HAS BEEN A, A GREAT PROJECT.

I'M GLAD THE FIRST ONE WE DID WAS THE PASSED WHEN IT AS WELL IT DID.

UM, AND SO I'M, I'M VERY PLEASED, PLEASED WITH IT.

WE'VE HAD VERY MINIMAL ISSUE, UH, AS FAR AS ON SITE WITH FOLKS LIVING THERE.

UM, HAVE HAD NEXT TO ZERO ISSUES AS FAR AS AS KEEPING IT OCCUPIED BY KEEPING AT LEASE, WHICH IS FANTASTIC.

SO, UM, I'M OPTIMISTIC THAT THAT'S A SIGN OF MORE GOOD THINGS TO COME WITH THIS ONE.

YOU'VE GOT A COUPLE OF PICTURES.

YEAH, I'LL, I'LL CLICK THROUGH, I'LL LOOK THROUGH THE PICTURES REAL QUICK.

AND I JUST SAY AS AN EXAMPLE OF THE DEMAND, I HAD PEOPLE CALLING ME BACK LIKE IN FEBRUARY.

YEAH.

REPEATEDLY CALLING ME.

I THINK THE VERY FIRST, FIRST PERSON THAT CALLS YOU ENDED UP BEING OUR VERY FIRST RESIDENCE.

SO YEAH.

UM, BUT YEAH, JUST A COUPLE PICTURES OF WHAT I WILL DESCRIBE AS AS THE FINISHED PRODUCT HERE.

UM, AGAIN, VERY SIMILAR, SIMILAR TO THE RENDERING I SHOWED YOU IN THE LAST PRESENTATION, WHICH YOU CAN SEE THAT WE'VE GOT JUST ABOUT ALL THE LANDSCAPING INSTALLED AT THIS POINT.

UM, PLAYGROUND LOOKS GREAT, CAN SEE CARS ALL OVER THE PLACE, WHICH IS A GREAT SIGN THAT FOLKS ARE LIVING THERE.

UM, A LITTLE BIT OF A HIGHER SHOP ON THE LEFT TO KINDA GIVE YOU MORE OF A VANTAGE, VANTAGE POINT.

AND THEN THE ONE ON THE RIGHT SHOWING THE POOL AREA.

THE POOL AREA IS PHENOMENAL.

UM, THAT, THAT THING HAS BEEN GETTING USED LIKE CRAZY.

THIS SUMMER IN PARTICULAR HAS BEEN SO SOMETHING HOT, BUT, UM, POOL LOOKS, LOOKS PHENOMENAL.

THE PROPERTY AS A WHOLE JUST LOOKS FANTASTIC.

AND THEN I INCLUDED THIS ONE, THIS ONE, THIS IS JUST A COOL SHOT THAT WE GOT FROM A DRONE, UH, WITH, WITH THE SKY, SKY IN THE BACKGROUND.

BUT THAT GIVES YOU A GOOD MANAGE, MANAGE ONE OF THE WHOLE PROPERTY WORKING FROM NORTH LOOKING SOUTH.

ANY QUESTIONS ABOUT PECAN GROVE? THIS IS MAYOR DODGE.

I JUST WANTED TO SAY IT IS A BEAUTIFUL PROPERTY AND IT FILLED UP QUICKLY, WHICH WILL TELL YOU ABOUT THE NEED THAT WE HAVE IN , UM, FOR THIS TYPE.

AND, UM, IT HELPS AGAIN, OUR RETAILERS, OUR MANUFACTURERS, AND OUR RESTAURATEURS A LOT.

UM, IT IS, I WOULD ALMOST SAY IT'S ALMOST FULL AND IT WILL BE FULL, UM, IN THE SHORT FUTURE.

I REALLY THINK SO.

SO, AND I REALLY PLEASED IT LOOKS REALLY NICE.

SO THANKS JAKE.

YOU BET.

THANKS FOR THE KIND WORDS.

OKAY, LET'S

[9. Project update on the status of the Oak Creek Apartment complex project located at 109 Oak Creek Way and South IH 35 Frontage Road in New Braunfels, Comal County, TX. - Jake Brown]

ALL RIGHT, SO WE GOT A LITTLE BIT MORE WORK TO DO ON THIS ONE ACTUALLY DROVE BY THIS MORNING, WHICH IS WHY I'M JUST A LITTLE MORE, MORE CASUALLY THAN I NORMALLY WOULD BE.

UH, DIDN'T WANNA WEAR MY NICE CLOTHES ON THE JOB SITE.

BUT, UM, THE, UH, OAK CREEK, I WOULD SAY THAT, YOU KNOW, WE'RE PRETTY MUCH, MUCH ON TRACK AT THIS POINT.

UH, IF, IF WE'RE BEHIND MY SCHEDULE, IT'S MAYBE BY A MONTH AT MOST.

AND I WOULD ANTICIPATE EVEN IF WE ARE JUST A LITTLE BIT BEHIND WHEN WE GET INTO THE FRAMING OPERATION, WHICH IS WHERE WE'RE AT NOW, THAT'S KIND OF WHEN WE START MAKING UP TIME IF WE'VE LOST SOME.

UM, BUT LIKE I SAID, WE'RE, WE'RE CURRENTLY DOING FRAMING.

WE'VE, WE'VE ALREADY GOT ALL THE SITE WORK AND UNDERGROUND UTILITIES AND FOUNDATIONS PORT, UH, AGAIN, I WAS OUT THERE THIS MORNING TAKING A LOOK AT IT.

THEY'VE ALREADY GOT THE ELEVATOR SHAFTS IN PLACE.

UM, THIS ONE, I DON'T, I DON'T KNOW IF YOU GUYS KNOW, THIS ONE'S A LITTLE BIT DIFFERENT IN THE SENSE THAT ALL THE BUILDINGS ARE FOUR, FOUR STORY.

AND SO, SO WHEN JUST ANYTIME WE DO FOUR STORY BUILDINGS, WE'LL INCLUDE ELEVATORS, ELEVATORS IN THOSE JUST TO MAKE IT A LITTLE BIT EASIER TO GET UP AND DOWN.

UM, BUT THEY'RE CURRENTLY FRAMED FRAME RIGHT NOW.

UM, I PUT SUMMER 20 20 24 AS THE A HUNDRED PERCENT COMPLETION DATE.

UM, TECHNICALLY THE CONSTRUCTION SCHEDULE CALLS FOR MAY 1ST, 2020, 24, SO I, I EXPECT WE'RE PRETTY DANG CLOSE ON THAT.

BUT IT, IT'LL BE DONE SUMMER OF NEXT YEAR FOR SURE.

UM, AND THEN KIND OF THE NEXT STEP, YOU KNOW, ONCE WE GET THE FRAMING OPERATION DONE, WE'LL, WE'LL MOVE FORWARD WITH PROOFING IT AND PUTTING, SIGNING ON AND, AND THEN KIND OF MOVE INTO THE INTERIOR FINISH PHASE.

AND, UH, THESE PICTURES ARE COUPLE WEEKS OLD.

UH, THERE IS MUCH MORE, MORE PROGRESS DOWN THE FRAMING OPERATION AT THIS POINT.

BUT EVEN IN THIS PHOTO YOU CAN SEE THAT WE'VE STARTED FRAMING.

UM, I'M, I SHOULD HAVE MADE A NOTE OF THIS.

I'M ALMOST CERTAIN THAT ALL OF THE BUILDINGS AT THIS POINT COULD CONFIRMING.

UM, I WILL ADD THAT EVERY DAY I GET

[00:35:01]

AND, UH, WHERE IT'S LOCATED.

IF ANY OF Y'ALL DRIVE NORTH ON 35, THE EASIEST WAY I EXPLAIN IT IS YOU HAVE A WALMART DISTRIBUTION SITE ON ONE SIDE OF THE HIGHWAY AND WE'RE SORT OF ACROSS 35 FROM THAT ON THE WEST SIDE OF 35 AS YOU GO UP.

AND IT WAS REALLY NICE ONCE THE ELEVATOR SHAFTS WENT IN 'CAUSE WE COULD SEE IT AS OPPOSED TO JUST THE GROUND PREP THEME.

RIGHT? YEAH.

AND, UH, AND THEY'VE STARTED ADDING SECOND STORIES TO MANY OF THE BUILDINGS.

THAT SECOND STORY STARTED.

WELL, I COULD SEE IT LIKE LAST WEEK.

YEAH, NO, IT'S, ONCE THEY GET MOVING ON FRAMING, IT'S PRETTY INCREDIBLE HOW QUICKLY MAKE PROGRESS.

BUT, UM, IT, IT ALWAYS LOOKS KIND OF FUNNY.

THE FIRST THING TO DO IS THE ELEVATOR SHAFTS.

THE ELEVATOR SHAFTS ARE STICKING UP OUT AROUND LIKE TOOTHPICKS.

BUT WE'RE, WE'RE GOING AND BLOWING AT THIS POINT MAKING GOOD PROGRESS.

AND IT'S JUST ANOTHER SHOT, ANOTHER SHOT CUT FROM THE SOUTH LOOKING NORTH.

I WILL ALSO, I DON'T, I'M SORRY TO KEEP INTERRUPTING.

NO, YOU'RE GOOD.

AND I'M SORRY THAT COUNCILMAN BRADLEY IS NOT HERE 'CAUSE HE SAID HE LIVES, THIS IS IN HIS COUNCIL DISTRICT AND HE LIVES IN A DEVELOPMENT JUST NEXT TO IT.

SO HE SAYS HE MONITORS IT EVERY DAY AS PROGRESS GOES UP TOO.

YEAH.

AND YOU CAN SEE A BETTER SHOT IN THIS PHOTO THAT WE'VE, WE'VE JUST ABOUT GOT PRETTY, PRETTY CLOSE TO THE CLUBHOUSE POWER FRAME THERE.

THAT'LL TYPICALLY THE FIRST, THE FIRST THING THAT WE FRAME IN ROOF, SO THAT WAY WE CAN UTILIZE IT FOR LEASING OPERATIONS.

AND THESE ARE JUST KIND OF SOME GROUND, GROUND LEVEL SHOTS OF THE DAILY REPORTS THAT DIANE MENTIONED A MOMENT AGO THAT THESE ARE PULLED FROM THERE.

SO THESE ARE KIND OF THE, THE LIVE ACTION ON A DAY-TO-DAY BASIS SHOWING YOU WHAT'S GOING ON.

AND THEN I INCLUDED THE RENDER RENDERING AT THE END JUST TO KINDA BETTER ILLUSTRATE WHAT THE FINISHED PRODUCT SHOULD LOOK LIKE.

I, AND YOU'LL SEE THERE THAT IT'S CONTEMPLATED FULL STORE BUILDING.

HAPPY TO ANSWER ANY QUESTIONS.

YOU GUYS HAVE QUESTIONS OR S SO NO SUPPLY CHAIN ISSUES ANYMORE, RIGHT? THERE'S ALWAYS SUPPLY CHAINS, , BUT WE'VE, WE'VE BEEN ABLE TO MITIGATE IT THE BEST OF WHAT WE KNOW.

NOT AS BAD AS COVID, NOT AS BAD AS COVID, BUT NO, THAT WAS AWFUL.

BUT NOW WE'RE, WE'RE MUCH, MUCH BETTER PLACE THAN THAT.

OKAY.

ANY, ANY QUESTIONS OR COMMENTS? OKAY, THANK YOU.

YEP.

THANKS GUYS.

WE WILL

[10. Next meeting is TBD.]

ALL RIGHT.