[Music] oh [Music] [Music] [Music] [Music] [Music] oh [Music] [Music] [Music] for [Music] [Music] [Music] counc ready all said good morning everybody welcome to this June 3rd 2024 meeting of the Charlotte City Council Transportation Planning and Development Committee as usual we will start with introductions beginning in that corner Monica Holmes Deputy planning director Allison Craig planning director Alisia Osborne planning staff Marjorie Molina Committee Member Vice chair Ed dggs committee chair Marcus Jones city manager Liz Babson assistant city manager Beverly Sanders communication and marketing Brent Kel interim CEO cats ly Alexander Charlotte Transportation Brett B cats Brandon Hunter cats Rob Nel re Mary Ramsey the Charlotte Observer great welcome everybody and online good morning it's Renee Johnson Committee Member Dante Anderson mayor protim district one and also we can't see the video online we can only see the coming up next slide if you guys are actually live with video are we live with video yes anybody else online Renee ask you assistant city manager good morning Renee Victor all right well let's get started um we have three topics today a cat's update a community area planning update and the compact development update and I expect there'll be some discussion about that last one but let's begin with uh the cats update for Mr Kagel yes sir thank you so I'll try to be brief in my update um item number one cats as we reported last month is still awaiting um information from the FTA on the special maintenance review that review um began last year and is ongoing uh we know that it is close to that the FTA is close to releasing their draft um uh uh summary report but they have not done that yet so we will keep the uh Committee in formed as as that progresses uh another thing to note this weekend June 8th and 9th Saturday and Sunday is our annual rail shutdown that is the opportunity for us to uh literally shut down the blue line and the Gold Line to provide um extensive maintenance along the alignment again this is an annual event um but don't fear if you are planning to use the blue line or the Gold Line this weekend Cats will be operating a bus bridge to provide passengers with service along those alignments um we are advertising that both in social media through our app and physically on the platforms along the blue line and Gold Line so that is this weekend um frequently this committee and the MTC has asked for status of the truck overhauls currently we have six vehicles that have received the overhauls and are back um at property and in service uh we have two vehicles out uh receiving the overhauls they both in Florida and we have two vehicles that have been returned to us from the overhauls but they are not back in service yet they they're there requires uh field testing once the vehicles come back from service they need to be tested along the alignment but not in Revenue Service and so that testing is ongoing one of those Vehicles is also undergoing the upfit for the uh new technology system so again um both being tested for the new technology as well as um the overhaul the the the out of Revenue Service updates or or testing once they've been serviced uh a couple other summary items when it comes to Safety and Security cast takes uh the Safety and Security of our operators and our passengers very seriously uh over the month of April which is the most recent um reporting month we did have three incidents involving buses um where there were minor injuries reported um in all cases uh in all three of those cases uh a personal vehicle made contact with the bus and um and uh passengers had reported minor injuries and wanted to be treated so they were treated on scene there was one other incident with with a minor injury a moped or electric vehicle made contact with a pedestrian inside of the uh Transit Center um private vehicles of any sort are not supposed to be cutting through the transit center in this instance one did and there was a um there was an incident again minor injuries um but um that was an odity that was the first one that I think we've recorded of that nature but um there was a minor injury with that and then there was one Rider on a Paratransit vehicle or STS vehicle a per passenger a personal vehicle made contact with a Paratransit vehicle while a uh passenger was on board and they requested transport by medic again minor injuries and they were uh all right for ridership we've been watching ridership closely um as we continue our recovery um a couple things about Rider ship uh April marked uh the fourth month in a row when our Miss trips were under 1% again that's effectively zero so we've now had um a pretty good sustained period of under 1% M trips we do believe that that is directly uh related to adequate Staffing which we have on the bus side and we think that that factors into some of the increases we're seeing in ridership overall we saw total system riters ship uh show an increase of 18.5% uh year-over-year compared to uh April 2023 our local bus routes were 18% our Express routes the local Express droughts were a 19.7% increase the regional Express routes were an 18.4% increase on the rail Services we saw overall rail ridership increase by 21 1.4% the Blue Line accounted for 22.6% increase and great news uh the Gold Line saw an 115% increase year-over-year I say that is great news because the Gold Line is the one area while we have seen consistently increasing ridership throughout the system the Gold Line is the one um uh area where we had seen passenger decreases uh along the Gold Line we believe that that is uh directly attributable to us reducing headways from 30 minutes to 20 minutes along the Gold Line about six seven weeks ago and so we're seeing that um frequency matters with Transit we all know that and the Gold Line is showing that and so we're very happy to show an increase in ridership for the Gold Line uh April to April another thing as we start as we've now started to have uh Mist trips under under control um below 1% we are also wanted to start reporting on and and letting you know that we are watching ontime performance Mist trips is a very important metric but so is ontime performance and so a little bit about ontime performance when we think about ontime performance most passengers think about ontime performance when the bus is late right when it's not there when it's later than it's supposed to be we look at ontime performance on either side of the transaction if the bus is scheduled to be there at a certain time if it's too early it's not on time if it's too late it's not on time approximately a five minute window of grace period for the buses and again ontime performance we look at ontime performance across all of our modes but this is really uh relevant to fixed route service the other modes are generally speaking very high in ontime performance just by the nature of rail um so so industry standard would be about 85% OTP that's what we would shoot for that's what most uh Transit uh agency shoot for in fix route service we are currently at 79.7% on ontime performance so as we are now um have Mist trips under control we do H we are working with uh National Express we've created a ontime performance task force and we are are looking at ways that we can increase OTP in our fixed Dr service because while miss trips has been important OTP is as well Paratransit ontime performance is is at uh about 92.4% blue line at 99% and Gold Line at about 93% so again um OTP we measure it for all modes but it's really the most uh um uh relevant in fixed route service with that that is the uh conclusion of my update thank you Mr Kel before we take questions i' like to welcome Dr watlington uh Committee Member and at large council member to the call good morning good morning thank you yeah and do I have questions I have a couple myself um you mentioned the injuries and detailed those in a way that we haven't normally heard so so for context is that a kind of normal level or do is that an unusual level of injuries yeah so um there is no normal level um and so let me back up I was providing you the same information that I that I normally provide as the CEO report out to the MTC as we sort of have worked through the work group items I wanted to start bringing in the information that we share on a monthly basis to the MTC so that's that's why this feels like new information but it is reported so to your direct question is is three a lot that is a measure we want it to be zero but we know that that is frequently out of our control that measure is very odd and that sometimes it spikes and sometimes it's low and the reason for that is it can be 11 12 15 and when you see something like that happen what it usually means is a personal vehicle has struck a fully loaded bus and so when that happens the passengers on board they're Jarred it's it's jarring it's a it's an accident and they ask for uh medic uh these are generally minor incidents they are not major if they were major we would report them as such but these are generally minor incidents and so three you know it's there is no really average on this it's sort of up and down and it depends on the circle cumstances but you can see it go um very high into the 11 12 14 range but usually what that indicates is it's one incident with a full bus where a private vehicle has struck the bus so that hasn't come up because it's a a source of some new concern uh that's just information you haven't been sharing with us that is correct it's it's not a source of new concern but it is something that we monitor on a routine basis um per FTA guidelines so otherwise I would just note very encouraging that we've seen that increase in ridership uh we are to be fair those still below pre pandemic levels right because this gets some media coverage so correct we're working our way back and it's not really certain given the change in people's work habits and so on uh what ultimate recovery we can expect in ridership I mean do you have a particular Target in mind that you think is attainable or how do we measure that we don't have a Target we obviously want to continue to see um passenger levels increasing always what I would say is post pandemic in the beginning of sort of the post pandemic era cats's recovery was lagging what other Transit agencies Across the Nation saw so um we are encouraged in that we continue to see increases in ridership but we're also encouraged that we are now right in line with most other Transit agencies but you are correct we still have not fully recovered from pre pandemic great so unless anybody else has anything I guess uh Mr C will thank you for the report and as always for your leadership of cats appreciate it uh our second agenda item is community area planning update Miss Craig do you want to introduce that one sure um I know we have spent a lot of time over the last few months talking about the Udo but there are other important planning initiatives going on uh right now and that includes community area planning and I wanted to have Alicia give you a brief update as to what her group is doing and what you'll see in the fall um because when we have our next committee meeting um we will be very soon after that um kicking off um our fall Workshop so I wanted you to have some Advanced um understanding of that so I will turn it over to thank you Allison um next slide please thank you all for the opportunity to share a quick update I do want to before I begin acknowledge the Brain Trust in the back that's helping to lead the work Katherine Mahoney and Kathy cornette they really are um helping to make sure that this process goes smoothly and that it is everything that the community expects and wants an engagement and um sound policy for how we grow and develop so as Allison mentioned we have been working with the community um since the adoption of the comprehensive plan to make sure that everyone sees themselves in this process and so by doing that we started the community area planning process early last year really taking the broader Concepts within the comprehensive plan to a more neighborhood level and producing community area plans and 14 geographies around the community and so we are now currently in phase three of that project the first two phases were around setting the stage existing conditions helping people to understand how they can help to create um better places that connect to the things that they want and need in their communities as well as to Opportunities around housing and employment next slide and so what I wanted to highlight um in this quick update is there are two major components within the community area plan and that's an update to the 2040 policy map as you all may recall the council adopted the first policy map back in um March of 22 so that was 9 months after the comprehensive plan and what that map does and what it has done is created an updated land use guidance policy guidance for the entire city at one time so one NE no one neighborhood was left behind and having current policy and so that map is being used to make capital investment decisions Land Development decision investment Decisions by our development community and our residents and businesses and so we have started that that communication or engagement back in 2021 and as you can see and we put this map together to show which each with each iteration of the map we've gotten fewer and fewer comments that doesn't mean people aren't engaged that means that the map is getting better and better and better each time think of it as a remodeling project in your house each time you do it you get a little bit better at it and so this past iteration of the map um we received so far 50 comments um but we've used the same process that that we've used before um throughout the iterations of the map and so this fall as part of the community area planning Workshops the community will have additional opportunities to provide information or their feedback on that Map There's a current version of that map out now um and it's been open for 90 days and closes in the middle of June and so another iteration of that map will come back out right before we go into the workshops and so what what that means is that the community will have an additional opportunity to um participate and share their comments on the map next slide please and so here are the key dates and the iterations of that map what this shows this process intentionally shows is that we're listening and revising and iterating making sure that we're responding to what we hear from our internal and external Partners as to how to get it right in terms of this policy map as well as the community area plans so our Next Step will be in the fall um we kick off our workshops in September and then we'll have draft um community area plans and a third version of the map for the public as well as our internal Partners to review um next winter and hopefully review an adoption after that with that update I will pause for any questions you may have thank you Miss Osborne any questions um Mr yes just really quickly Miss Osborne first of all thank you for your work I um I think this is important to note that we still have you know some Community touch points um and it's encouraging the one thing that I think I'm wondering about is the UNCC partnership oh yes so we have a um Katherine and Kathy really been working closely with UNCC to host focus groups okay um we have um different parties that want to share their information they're actually going to convene those group groups for us which provides a different level of Engagement sometimes people don't want to be transparent or show everything or share everything with us so you cc is our partner in in doing that and hosting those focus groups they we did it last spring I think with them and so um but they were leading their process and they come on board to help us with this process as well okay now that's really good so the one thing that I think you know I I love Partnerships I think the best we can partner the better right we are um and you got all of that young Talent incubating over there right that it's untapped their skill set is research right so I'm really interested in the outcome of that okay you know exercise I'd like to know more we'll make sure that we are creating a briefing book for you all where it shares how um the community is being engaged and the different impacts of the process for each Council District so we make sure U we'll have those ready by the Fall after your break and so you'll see how the engagement process is being impacted per your district and those Partnerships that'd be great thank you st you're welcome so uh for clarity I just want to repeat um we are working on updates of the policy map drafts of those updates are being exposed to the public for feedback the intention is that the policy map won't be modified by this process until the time comes when we adopt the manuals and the policy map and then I guess the other thing to emphasize is the the policy map is what actually gives effect to the results of this process the manuals as I understand it are uh do not modify the Udo and basically capture the essence of the area on the basis of which the policy map is being updated if that's a fair statement could you describe the manual a little bit I the essence of the manual is kind of like a user guide it it tells you how to use the map how to modify the map um the process and how we produce the map so it it's kind of a user guide and it captures the the methodology and as well as how the map was produced and how to change it and from a user perspective not just staff how do we use it but how the community should use it as well so it's a user guide um that will accompany the map to make sure that we're all on the same page about the purpose the intent and how to use it or change it in the future but then there's also for each of the 14 areas going to be a what I thought was the manual but a report a document yes document right so that's the thing I think I was thinking about and that is also in development yes we are working on those currently the 14 um plans which will include the elements that are in the process um um the process on the first slide that shows um existing conditions what are the um how is the lay of the land today uh what types of places are we trying to create for each of those within those 14 geographies and then what types of projects and programs do we need to support and that's what the fall workshops will be about how do we make sure that we realize that Vision in each of the 14 geographies so we're working with our partners our um other functional Department ments like Transportation um fire water to make sure that we're creating comprehensive plans that say as we grow here's what we need to support that growth in each of the 14 geographies and then that will be captured within a document called a community area plan for each one of those geographies that we will be requesting adoption by Council but then again that community area plan captures the kind of character of each of the 14 areas to customize that process the Udo a bit doesn't actually modify the Udo though not and so any changes in policy related to the area planning process will be through the map yes right and the map would reflect then residential type of development the nature of the area and so on and with any luck that will address some of the concerns that people have about the Udo which has been a kind of one-sized fits all and which has caused certain areas and Miss Craig would that also take on board things like targeted growth areas and some of the other Concepts that we've talked about I mean I think it'll it'll be a combination you'll have some policy discussions and area planning but then we're also going to have some regulatory guidance that we will be talking about as part of phase three um in the work that we're doing with Udo so I think it'll be a combination between the two good just want to make sure on an ongoing basis that we remind everybody about this process because I'm not sure people are know exactly what to expect so uh but I think it will be a very welcome change when uh people around Charlotte can see themselves more clearly in an area plan and they put in Udo so appreciate that work thank you you Miss Johnson Miss Johnson thank thank you uh if there's some someone in the public or members of the public that would like information on how to get engaged and find out when these dates are is there a certain certain website that they can look at or can they send an email that they're getting the information or how do they U stay engaged to obtain more information so we've U Been thank you for that question council member Johnson we've been intentional in making sure that how we contact people and how they find out where we are savs the same for the past 5 years I think you can use our CLT future 2040 website and that is holds the um kind of our landing page for everything in terms of Engagement and if they want to sign up for our email blast they can do it all on that website and that's at the bottom of the screen on this slide thank you you're welcome has joined us no further questions no further questions good well thank you Miss Osborne thank you and Miss Craig we will charge straight ahead to compact development and I'll just mention uh by way of Preamble here we uh at our last zoning meeting basically closed a loophole in the conservation option that uh was frankly being used by developers to achieve higher densities than uh and in a way that we didn't intend so that has been kind of put back to doing what it was supposed to do and is expected I believe to apply to about a sixth or so of petitions um but now what we're talking about is another change that will basically partially replace some of the opportunity that was created uh unintentionally by the conservation which is compact development so uh and we are hoping to get this uh acted on in uh our next zoning meeting so uh hope I didn't steal your introduction Miss Craig but please go for it no you did not actually um I'm actually going to start off with um a quote from a a LinkedIn post from a colleague Craig Lewis um because I think it's nice to sometimes hear things from other people and hear their perspective and so what he posted last week was um much has been written about the need for missing middle housing but when an unregulated Market one without design standards just basic zoning setbacks height and density is delivering the image below which is a sea of driveways and without trees of um lots of units um it's hard it's not hard to understand why neighbors object fully paved front yards zero Landscaping no eyes on the street from front rooms and the lack of a prominent entry that says welcome neighbor additionally these projects are often loc located in places devoid of nearby Neighborhood Services making walking undesirable and doubling down on car dependency the worst parts of density are almost all about car management both storage and circulation a few simple design changes could easily turn this into a positive without impacting its affordability so I say all that to say is like um um we've got three phases of adjustments that we're wanting to make with the Udo and they relate to some challenges and opportunities that we have and the challenge that we have is an inability to regulate design like other states do so we really don't have the same toolkit that many other states that are implementing missing middle housing have and that's creating some challenges for us as by Statute right by statut yes it's in North Carolina State statutes um the opportunity that we have that many other places have is we have land developable land and so what we're trying to do through a series of three phases of text amendments is make sure that we are using as many design tools as we have to get the right development types and then ultimately prioritizing additional density where we have access to services so where we're less dependent on our car doesn't mean that the car is going to go away but making sure that we're aligning development with access to services and so like you mentioned we've got conservation that um of course went into effect on May 20th and now today we're going to talk about compact development with a hope that Council can act on that this month so that can go into effect um before you go out on break so I'm going to turn it over to Monica to talk about what the compact development forum is proposed to look like and then give you a quick preview of the phase three U part to great um next slide so let's get started and please let's ask questions along the way because this can be pretty nuanced and detailed um and that's just the nature of this type of technical work so we're going to try to keep it as informative as possible and at um a level that we can understand without getting too far into the weed so we'll first go over how we got here uh just to really frame the conversation then look at the some of the numbers uh because I think the numbers are really important and telling uh then some of the observed issues we've had under the Udo I'm really proud to say we're one year and three days into or two days tomorrow will be three days into implementation with the Udo and we're learning a lot rapidly um and then how we are addressing those issues again Allison just touched on some of those things with conservation Compact and then the phase three text Amendment right sizing Supply our timeline and then make sure we save time for discussion so I first want to just frame the conversation and I'm really glad that Lis he was able to give an update on area planning and kind of touch on the comprehensive plan so we are almost 3 years into uh the fir City's first comprehensive plan and vision and that had 10 major goals associated with it uh and how Charlotte future 2040 so it was number one 10-minute neighborhoods um neighborhood diversity and inclusion housing access Transit and Trail oriented development safe and Equitable Mobility healthy safe andess active communities integrated Natural Built environment Economic Opportunity identity and charm and fiscally responsible and I want to read all 10 of those to really make sure that we are rooting this conversation in the fact that we have 10 goals and priorities and if we weigh heavily and basically only pick one goal to move forward then we're really disregarding the other nine goals in the comprehensive plan so I feel like that is a very important takeaway from this that we can't forget the 10-minute neighborhoods and access to Neighborhood Services or the really importance around our tree canopy and our natural and built environment or the fiscal responsibility that we have around infrastructure and private and public infrastructure so we're really constantly checking back in with these 10 goals and making sure that our um tools in the toolbox in the Udo are rooted in this next slide so again how we are framing this is really that last column so we are at a phase now where we are putting that policy into action we're working with the Udo um you've probably seen this graphic many times before uh but we are in that last column today talking about compact development um some of the work around the Strategic investment areas is really in partnership with this Udo work again focusing infrastructure where we want growth and development taking the policy putting it into action and implementation and how we actually get the regulations to get there next slide so a little uh preview of neighborhood one by the numberers so just to remind everybody all the text amendments that we are focused on in this Phase 1 2 3 focus in that yellow part of the map neighborhood one zoned land in the city and the etj combined that's a little over 50% of the total land in the city of Charlotte so it's a lot of land right that's a good number um we have a little over 11,000 Acres of two plus Parcels 2 acre plus parcels in the city and the etj that are zoned for neighborhood one that are developable we are defining developable as meaning they're either vacant they have nothing on them they're un they're underdeveloped meaning they may have one house on a 2 acre parcel um out in the etj OR in kind of a more Suburban context um or they are um a use that's kind of a use that might not be um they might have a vacant building on it about 20 uh so that's about 55 % within the city of Charlotte of that 11,300 acres and about 45% the etj so you kind of see and we I'll show a map later um where it'll have those Parcels in blue and you'll really see that a lot of it is not inside what people from Charlotte might call route for a lot of it's not inside that um you know Eastway Sugar Creek uh wind over Loop right A lot of it is much further out than that we're talking about 485 and Beyond um so 24% of total acres in the City and etj that are in that 11,300 are within the critical and protected Watershed or the airport noise overlay now why is this important the critical and protected Watershed is our drinking water so that has um additional development regulations on it but it is from a policy structural perspective an area we want to protect um the airport noise overlay is also an area we do not necessarily want to encourage more residential development they have noise impacts due to runways and sounds from airplanes so we really want to look at those two areas in Partnership I want to these are two new additions that you might not have seen before the last ones and so I want to just really again focus in on when we talk about that two plus acres developable Parcels that is the majority vastly the majority of where we are seeing duplex and tribe Lex development so we have infill missing middle which is what other cities Minneapolis Portland Austin other cities that have adopted missing middle policy and missing middle regulations do not have 11,300 Acres so what they are seeing is what they're trying to encourage is that infill missing middle and we want to encourage that too we've seen about 256 in permitting as of Friday we had about 256 duplexes in perit mitting that were infill meaning a single lot in a existing neighborhood that was becoming a duplex and about 45 triplexes that's total units that's not building so that is um you know that is 10 whatever duplexes and 15 triplexes if that makes sense so just to be clear missing middle means what's between apartments and single family homes yes that's kind of the that is the industry nomenclature is missing Ty like the duplexes and the triplexes and town homes presumably yes yes because what you have happening is a kind of um dumbbell over the past 20 to 30 years where you have a lot of single family homes being built a lot of Apartments being built and they call it the missing middle because the middle in between those two has not been built for a lot of different reasons but and you made one more point you said how many are in existing neighborhoods right now so this 250 6 and 45 are what is we consider infill meaning they had a single lot and they pulled a permit to do a single standing duplex or Triplex so it is not a part of a larger development so that is um only about 5 to 7% of the total number of duplexes and triplexes we are seeing so we're still um pulling the numbers on that last one because it's very we just changed the ordinance last Monday or the 20th so two weeks ago so we're pulling updated on that but that's the range that we've seen based on the information we have to date so but those are the probably the most controversial ones they are they are the infill ones are controversial the the the thing is with the last ones is they are very controversial that that um over an acre depending on where you live is it next to you do you know what's happening because of how long it takes to get through permitting construction drawings into actual construction that last one developments over one acre we're not seeing them out of the ground yet so they're in permitting people know they're occurring um but they're not like you can't drive by and see 20 houses under construction vertical if that makes sense so um this is just what is what has made it through permitting or cleared what we call Gateway meaning it's passed it's it's vested it's p the point of where it can change if they keep continuing forward they can build it basically council member Johnson has a question Miss Johnson thank you I wanted to ask about the the the five or six% that are in the the the neighborhoods the infield developments could we get a map of those proper of those petitions and also how many of those and I imagine it's close to 100% but can you would we know how many of those are in neighborhoods that don't have HOAs um sure we we we don't I don't know if we could pull it exactly knowing if they have an HOA or not I mean if they're building it then likely there's not a deed restriction on the property so you could make the assumption that it doesn't have a deed restriction maybe it has an HOA but not a restriction in duplexes and Tri lexes but we could look at the M map and make some informed um guesses assumptions based on what we're seeing from what we've seen thus far is is these are occurring throughout the city it's not like they're focused from what we know it's not like they're focused all in District X if that makes sense so we'll get a map and we can run the numbers of how many are in which district and more geographically based one of our our concerns uh for the opponents of the that provision in the 20 240 plan was that there was going to be a disparity in where these developments were built because they were in areas that didn't have the HOAs so I'd like to compare uh that map to the map that we that we that we had when we were reviewing the policy I think there were only 33% of the areas in charlot that didn't have an HOA so I'm curious because this is one of those foreseeable things that we we talked about yeah the state legislature and we can get more details on it um ha have made some tweaks and changes to deed restrictions and HOAs where where it's there are like we know some of these are happening I believe in Beverly Woods or some neighborhoods that you might historically think have HOAs and deed restrictions but because of some changes in the legislature and the applicability we are seeing these fairly geographically dispersed but we'll get a map together and run the numbers so that we can present that back to y'all and and have a more robust conversation around it and then let me ask you because these are by right it's possible is it it's possible that the the real estate transaction have have been executed or they're they complete but the permits just haven't been filed is that correct I mean couldn't there be more in the pipeline that we're not seeing um definitely there could be more in the pipeline or in in the works per se I mean that's yes there could be um I mean we've seen what we've seen thus far is it's not to my knowledge it's not drastic spikes and in valleys this is and this compared to the bottom one is a drip versus a flood I mean the bottom the large developments we've seen very large quantities that infill number um it seems I know it it is large and if you live near it maybe you feel like it's large but that in comparison is a very small number in comparison to what we've seen on the other end of the spectrum okay and then last question this may not be for this meeting but there was some concern about development in the ejs um it was brought up during the last public hearing and I wanted to know from Miss Craig is there any consideration to making changes in the etj in the development in the etj so um Monica's going to cover this a little later in the presentation but this compact development form which is intended to be the primary tool for subdivisions um going forward um what we're proposing uh would would limit how this is applied in the etj so Monica will cover that a little later and then we can if that doesn't answer your question we'll Circle back Circle back to it thank you y okay so did you want to speak really quickly Mr chair so the the one right below it the 93 to 95% of all missing middle is permitted in developments that are greater than an acre so they have to be greater than an acre to be permitted they do not just that is the trend we're seeing so what the trend we're seeing is that you know this so let's that's about 300 units that in infill missing metal that's about 300 units total we're saying that um we're seeing that only represents 5% of all the duplexes and triplexes permitted about um because everything else is coming in over an acre okay that's not a regulation per se that's just what the trend is is there a particular regulation for that well that's what compact would Compact and conservation would do would put some parameters around uh that size and scale and uses and allowed basically and some geographical constraints around it do you remember last committee meeting we had that 3,000 units were vested and 5,000 units had been submitted so that's what that constitutes that 93 to 95% ah so we're still finalizing the numbers but you can kind of do some napkin math around 93 to 95% it's somewhere in that range basically okay I'm better I'm good all right thanks so I would just like to note I think back when we were talking about the 20 240 plan and we did the economic impact analysis and those studies we did see maps that showed where the uh single family zoning was what percentage of it was subject to HOA and what was Apparent from that was as you would expect there was a large correlation between no HOA and the lower inome neighborhoods and that's why some of us who objected then to the whole 2040 plan said here's an unintended consequence waiting to present itself we are diverting people towards those places that we in many instances that we would like to preserve so I just wanted to expand a little on what Miss Johnson said uh the question is but what can we do about that yeah and I think again we'll pull the maps but from it has not um that has not played out as a hard and fast we are seeing those happen in the Southeastern wedge okay good carry on okay next slide so just some background we've been having this conversation almost the year uh from the original referral of when we really uh we're talking about we're seeing it was the Lexington we're talking about entire developments of duplexes and triplexes which are really on the ground and we're going to talk about them today manifesting as tow houses um and locations not necessarily suited for two times three times the density based on the existing infrastructure and their location so we have been talking over the course of this year in three categories for potential changes the quantity the quality and the location so everything you're seeing now in phase one two and three is really hitting those three categories in different ways so first it's the quantity of units uh requiring a mix of housing types in developments originally we had over 5 Acres we're now recommending that down to two but that was the original referral um specifically in areas that are n1a and n1b and that's what I'll continue talking about today the quality making sure that we are modifying the development standards to um increase open space to have appropriate buffers between development to require public infrastructure and then last which gets to the etj question is the location and what locational qualities are appropriate to have have larger developments that are tow houses duplexes triplexes tow houses and how do we want to um address that in areas that are not necessarily targeted for growth next so could you clarify back to that slide uh require a mix of housing types uh can we be clear about what it is we mean by that sure that was the excessive duplexes and triplexes or what what what what's the kind of idea that we have about what that should look like and I'll get into it a little bit further about the specifics and the goal the original referral was should we require a mix should we look at and say you can have you have to have X number of single family and we've done a lot of testing and site testing around it and we feel like we've landed in a space that is taking that into account um and really balancing kind of what the market wants with what um what the intended outcome is so but but require mix is a AED at actually putting a cap on the density if you will it is we pushing back against excess in this area right okay thank you so again the schedule we are following is conservation phase one which really address the quality and quantity of that original tool that was adopted May 20th um compact is coming before you all for hearing on June 17th and potential adoption on June 24th that is kind of the new tool that will take the place in appropriate locations for what we call more modern housing Supply smaller lots more attached products more duplexes um and then the phase three residential Supply um right sizing Supply is really how we're calibrating and applying the lessons learned over the past year and what are Best Practices so are we allowing adus accessory dwelling units and are we seeing them get built are we allowing Cottage courts which is a tool that allows again small footprint homes around an open space um we have them in the ordance it's not being used how can we get that to be used and then the last piece which is going to have a lot of conversation around it is in these areas targeted for growth Strategic investment areas centers and transportation corridors do we want to allow stack quads and Tow houses because that's that is the form we're seeing and that gets us to that higher density and more Supply so we want to have a more robust conversation around that in phase three as well so phase three uh what is the timeline like uh I think there's still in my mind a certain lack of clarity about exactly what's going to happen as a result of phase three that will be another text amendment that addresses these issues yes and what is the sort of time frame in which we expect to see that so I'm going to end today on some slides specifically around the goals of phase three we're not um we have not put dates down as like this is the hard because we know phase three is going to take a lot of work and Community conversation with that so our plan is to do research this summer um as soon as compact is adopted really deep dive into all the the tools that are listed there uh best practices we're doing a market study I'll talk about and then in the fall basically Target adoption so we're not at break neck speed on phase three we understand that there's a lot to unpack there so to be clear what we're really interested in today is two yes right which we intend to try to adopt this month yep go ahead next so again where we are trying to get to is this balance of development tools so you have base development which really mimics the patterns of existing neighborhoods uh that today in today's market is not necessarily financially feasible uh in larger developments you have conservation that again is focused on those sites with environmental features feates so Watershed protection area steep topography that preserves 40% of open space in its development pattern in exchange for that as a reduction in lot sizes we do not believe that tool will be frequently used we believe it will be used about 5 to 15% of the time again in these very special sites and then the last which again we're focusing on today is the compact development which is um the larger development Parcels we so pre Udo we had a tool called um cluster development we saw about 80 to 90% of development using cluster development as a tool we think that we'll be somewhere in the 60 75% range with the compact tool once it goes live and to be clear uh the conservation is 5 to 15% it was 90 before we made the text Amendment so we were seeing everything come through there and now in conjunction with compact development we expect conservation to count from a tenth or whatever it is yes uh I just wanted to mention too for context uh the feedback we're getting from the industry points out that there is a direct tradeoff between the kind of density we allow and and the sort of requirements we impose and the price point to which they build which is a commercial thing it's just an economic reality so one of the things that needs to be on our mind as we work our way through this is to uh permit enough density subject to avoiding alleys and doing the other things we're trying to accomplish but liberalize a little compared to base development which was so restrictive that according to them they had to build to A4 to $500,000 price point per unit in order to meet the requirements and still be able to make money so I I think this uh uh compact development is a valuable alternative and it sort of partially adds back what we took away by closing the loophole on conservation thank you go ahead next slide so again um I think you just summed it up very well with the Y now so I don't know if I need to cover this but uh again we're looking at kind of what are the modern construction cost how is all that balanced how do we get the smaller lot size um and that appropriate density we've really focused on not putting um a density cap and really focus on the form and the form and the infrastructure and making sure we get those pieces right so we feel like it is very important and we've heard from the industry that getting compact is very important to do as quickly as possible so that there is um an easy conversion from what people were using to a tool that still works next so's oh miss Anderson thank you Mr chair and and thank thank you Monica for the information just as a a point of information I'm wondering with the compact development here that youve created how was that shaped if if in any way shape or form by the shet that was held any input from uh the participants of the shet yeah you guys are asking questions right before so I'm going to talk through the charet and about two slides and talk through some of the input that we heard in apologies I'm sorry no no I appreciate it but so I'm going to talk through the shet and some of the feedback that we received from the shet and how we've Incorporated it into the draft standards um we actually uh just a preview we actually had the charet we had a followup kind of mini shet and a follow-up meeting beyond that too so we've done a couple cycles of testing which I think has Pro proven to be really fruitful so I'll talk through some of the big points in that so this reminds me of watching TV shows with my daughter when she was young and she would go the whole time well what's about this one and we go wait wait okay just let the story unfold so please you know I love that you guys are thinking about it that yeah you're you're really thinking it through so um again this has been calibrated with feedback from both the sheret and the udio advisory committee um we uh it's a would be applicable to subdivisions over two acres uh you have to provide 10% of usable common open space this is an addition to the 15% of kind of tree Save Green area that you're required to do um in all development in in one so that gets you to about 25% the usable common open space has to be within 1,000 ft of a lot it has to have certain design parameters around it so that it's actually Green Space that people want to be in and will use um on in the text Amendment we are proposing to allow only up to 25% of lots in n1a and n1b which those are our lowest density zoning districts only up to 25% may have triplexes I'll show some tests but really that equates to um very similar to if triplexes were on Corners uh but we think that giving the broad number gives flexibility to where you might put triplexes in a development with the phasing so you would be allowed to use the compact development tool everywhere except for protected critical Watershed and Airport noise overlay you can see on the map to the right all the blue are the areas that are 2 acres and greater and are developable in in one and all the hatching there on the western side of um the city county are those overlays so to answer council member Johnson's question from before that takes about uh 40% of the TJ um out of the ability to use compact development uh because of where um the airport no noise overlay and the protected over the Watershed overlays are located um and then again I've mentioned we would like to come back and have a conversation around town homes in phase three when we are adjacent to centers and Transit Transportation corridors so um basically I'll show you some slides of how we might add that back in when we're talking about phase three but again I want to focus today is about phase two and getting comat compact development adopted so are you going to say more about the ejs because uh I just wanted to point out here this has been brought To Us by uh County Commission members and by residents um what was happening if you look at the slide we saw earlier 45% of those Acres that you highlighted are in the etj and that demonstrates why the issue that we're addressing was disproportionately impacting that because 45% of those versus the ejs represent 5% of the area uh something like yeah I could we could run the number yeah but it's a tiny so disproportionately right we're seeing that these are this type of development but um my position has been we need to just fix the ordinance that is having the effect of disproportionately impacting the ejs and not make up special land use rules for the ejs so I think we're solving their problem and we are addressing the thing that has caused the complaints to come back to us but we don't need to and shouldn't actually create ordinances that are limited to because our principles for land use are the same everywhere and uh and I think we can fix the etj problem by doing what we're doing yeah and just to point out too that the by saying that compact is not allowed to be used somewhere that gives a developer two tools conservation development or base development so if you were developing in an in1 area that is outside of you know that that is um outside of where it's allowed those are the two tools that you will pick between basically so next slide Johnson has a question Miss Johnson thank you Mr dggs I think just two things when you talked about the etj I think it should be clear that that's your opinion and that staff North Council has talked about that as a as a and the etj don't have or may not have the infrastructure um and safety an issue and there are other factors in the etj that aren't factors in the city so um I know that's how you feel that we shouldn't develop certain policies for etj specifically but that is exactly that that's your thoughts and your feelings and the council has not made a decision we've not discussed it as a whole since we've heard from the public on that issue and then um secondly I also wanted to talk about the um the triplexes I know we're kind of in the beginning discussions about triplexes but I've asked directly if we're expanding the areas where triplexes can be built if we're looking at the um like single family lots and infills and I did I don't recall getting a direct answer so I I want to know clearly if we're talking about expanding the use or the areas where Tri flexes can be built more than just on Corner Lots because uh my initial thoughts is that's not something that I would support thank you that's part of we see that as part of the phase 3 conversation that talking about specifically the infill and smaller developments of Tri plexes so we are not and we're not recommending expanding the use of triplexes we're actually in the compact talking about in N1 a and n1b limiting the use of triplexes to 25% of the lots for Compact and just so you know the way it is written is it would be for compact conservation and base develop M so basically any development in N1 and n1b would only be allowed to have up to 25% so that would be kind of shrinking where you could use triplexes in larger development when we talk about infill neighborhoods and the uses allowed in them whether that's triplexes tow houses stacked quads Etc all of that is part of that phase three package and the focus for that package is for us to focus density and development in areas where there is appropriate inter um infrastructure so basically what I would call dial down in areas with less access to infrastructure while dialing up um very strategically in areas where there's more um infrastructure so that conversation would include triplexes and where they are allowed in existing neighborhoods so Mr Johnson I did preface my remarks by saying in my opinion so I think I was clear about that uh all I'll say is that we should be doing this work with an awareness of the etj because that's where a lot of the problem is occurring uh my hope is personally that we arrive at a place where any given set of circumstances uh applies equally whether the location is in the etj or not and if we write the rules properly they will have a disproportionate impact in the etj because that's where a lot of these problems are occurring but we shouldn't treat a particular situation in the etj different from a similar situation that might occur within Charlotte so the the trick here is to write the rules in such a way that they deal with what's happening in the etj but don't provide unequal treatment regulatory treatment and again if the rules are written properly uh they will have the effect of pointing to better development at all locations so just an opinion I'm sure we will have time to uh to work on that further uh okay go ahead and I understand that and thank you but I also think there's an opportunity to discuss it from an equitable perspective so thank you which again I think the equity standard should be the same everywhere as well but uh it's all right let's if we may just move on and uh and hear some more yeah so again just to highlight some of the major standards is that in compact uh there's a requirement that 70% of units must front on a public Street street so pre pre the new Udo 100% of units had to front on a public Street in in one neighborhoods so post udio people were using the conservation development tool to have upwards of 70% of units not fronting on public streets which has created a lot of infrastructure concern we and I'll talk about this we've heard from we're trying to balance those again that affordability and public infrastructure and we feel like 70% is the right number through testing to start off with and to say okay we understand that there are specific situations where you might want to front on open space I'll show some examples um of this we then again I just talked about the 10% common open space that's required and the triplex limit that bottom table there shows kind of what the current minimum lot size is and how you can um cut that in half uh in the ABC district and then reduce it in the D District and get those smaller lot sizes that are more appropriate for kind of the type of housing that we're seeing being built in the market uh the map on the right shows you um just again to point out that a lot of these developments are not occurring in that cyan color that cyan color are within a half mile and quarter mile of our activity centers and our um transportation corridors so all those little boxes you see especially the blue and the purple ones those are N1 A and B projects that are in permitting right now with duplexes and triplexes um as the base unit type that are that many of them as you can see are not kind of within that cyan color our goal is to get more units built within the cyan color because that's where we have again services and Street Network Transit Etc daily needs all the things that you would want so the lighter the yellow and red those are the C and D distri districts um so you can see those are kind of the duplex and Triplex developments that are coming in kind of in the more intense District which tend to be more in town next slide so um as as council member Anderson just asked we were we had a very Lively charet um that where we had designers uh Comm some community members several council members we really appreciate those um who who came to listen to the very techn technical discussion and we test did our first draft of um our first draft of compact so uh next Slide the things that we really heard from that charet were again uh moving back away from the 100% on public Street requirement because of the affordability question and the cost uh we that that was a huge push on it also uh there was a desire to have more flexibility in lot sizes between the width and uh length which we provide and then some buffer flexibility about how the buffers could be used so you just see here some of the drawings um and we did there were probably about 15 different drawings and two different test sites that we did um and so we took those and Incorporated them into uh the new draft and into what you see now one thing I'll will also say from this is that we originally thought 5% open space would be we weren't exactly sure if that was the right number what we found out is that 10% gets you more and it it does little to the actual unit count so from all the testing that was one positive was that we were actually felt really comfortable raising the bar from 5% to 10% because that was very achievable whereas allowing 30% fronting on open space was kind of a give back to the development Community um so that if we require it you can front units on it next slide so these you've seen before but I just want to remind you again we've been doing a lot of testing around sites you can see here preo base prudo cluster and kind of those numbers slowly rising from the old conservation to the current and then proposed compact so proposed compact is getting you a little bit less but fairly close to what conservation was but again bigger upside more open space required more quality open space and public infrastructure next one um so this is hard to read just know that there's front loaded and rear loaded and you're getting um about the same units in either one uh that is for a developer to decide kind of which is most advantageous to them whether to do rear loaded or front loaded next slide and you can see here I did a zoom in here with those colored so it's a little bit easier to read but some of the positives from compact site testing um and working through the charettes where again we have a required 25t buffer all around the edge of the development so when you're adjacent to another in one development you have to have a landscape buffer there um we saw through our testing that the triplexes on Corners really equated to about 25% so we felt comfortable with that and you could see that in these drawings um again that usable accessible common open space that on the bottom left of that is that usable common open space in this drawing and then one thing which I I really through reading all the site plans that I think is very important is that by requiring a public Street Network we're requiring stubs to Future development versus if we have all private alleys they're literally just putting um a barricade and not building it to the property line so if the person next door develops we'll never get that connectivity and that's really important for future growth to have that street Network and connectivity so next slide so again this is just testing out the new standards I want to you're what you see here um is all duplexes with a few triplexes as to that 25% this is yielding about 39 units uh it that's about 10 units 8 to 10 units less than if you were to do all triplexes but I want you to look really closely at this site plan um and then go to the next slide I want you to look at this site plan which this is actually under construction right now it is at the corner of woodlon and selin it is a townhouse project I call it a townhouse project because if you were to walk by this and see this you would say 100% it's a townhouse project but what it really equates to is six Tri triplexes two duplexes and three quadruplexes so if you go can you go back to the previous slide what I want to show you is that basically what we are calling duplexes and triplexes next slide is coming out of the ground and looking like a townhouse development so we are really trying to balance those two things right and so that we don't end up with hundreds and hundreds of a ERS out in the etj that are just for all intents and purposes a townhouse development being kind of um called a duplex and Triplex development right so we're trying to balance those three things which is really the framework of how we got to let's limit triplexes let's really focus on duplexes and then let's focus in phase three on where tow houses are appropriate because that de facto is what we're seeing when we allow Tri is everywhere um so are town houses allowed in the current N1 A and B no town houses are not allowed in N1 right town houses are not allowed that's basically a four or five unit so in this what would qualify today as a town housee would only be that Center portion there so if this were to come in bu right what they would do is they would just make those triplexes and do it by R and not reone it right this is a little bit of a back door way of creating tow houses where they're not intended basically yes and it actually costs more because if you do a four to five unit townhouse there's some savings on doing one structure that way versus a duplex or Triplex where you have to do a two-unit building have a space and then do a two or three unit building so it actually there's some affordability gains and and I'll talk about it but in phase three we're going to do some Market study around what are those affordability gains if you allow four and five unit buildings versus just a three-unit building so keep going so we've been in Partnership uh working on again some of those lot level issues so what are the ma major sticking points you know that we're seeing in these developments that we have included in compact which is those sidewalks uh requiring Street trees um having a real front door uh the quote that Allison L off with kind of points in that direction right and that that we are recognizing too that de facto what we're seeing is tow houses and triplexes are pretty much one for one the same thing they're very that's a triplex in the bottom a triplex in the bottom right but again it is recognized as a townhouse so next one so where we are schedule wise is uh we're here um we're at tpd uh the first week of June we're going to public hearing it's filed uh we're going to public hearing on June 17th we'll have the zoning committee recommendation actually that'll happen on the 20th of June and then city council decision on the 24th uh that phase three which I'm just going to take one more slide one or two more slides to talk about that phase three as a preview um is we'll be spending the summer researching and doing some engagement we're going to look at the feasibility and economic um land availability around tow houses like do we have land available to build more tow houses in areas where we want to see more density and growth um and then in the fall we'll have the public Hearing in city council decision we will we can give y'all in June um kind of a more um direct timeline to that and provide a clearer update as to where our targets are next slide and again I wanted to just preview some of what that phase three will include I know we've had a few um questions around it it will focus on whether or not we should increase infill housing specifically duplexes accessory dwelling units and Cottage Court kind of moving away from just looking at triplexes uh so it's more of a gentle density providing byright development opportunities near centers and corridors those tow houses and stacked quads and areas where they're appropriate and then what additional affordable housing tools might we explore so are there additional bonus options is there a unit type that may be affordable that we have not yet um identif ified so we're working very closely with housing and Neighborhood Services on that last bucket there um and that below is just a cottage core unit that was spent sent To Us by a national developer who wants to be able to do more of them um next slide and so you can see here we've kind of wrapped up the top part of that which is the conservation and now we're in phase two uh we have two public info sessions this week around uh compact development both of them are virtual uh so we expect have great questions and great conversations around that we also will have a UAC meeting on Thursday of this week an ordinance advisory meeting to again bring the final draft to them have some more conversation around it and really um walk through our rationale at that point so with that I'm I am done and if there's any additional questions I'm happy to answer them uh thank you Miss Holmes that was a very compact presentation um we don't have a huge amount of time so uh and I wanted to note it says informational here but this committee is not going to see this again before you want the council to act is that right so ideally we would actually have a conclusion from this committee a recommendation um so the for a decision the zoning committee like other resoning petitions is the official body for making a recommendation but I think it's important like last month you all agreed that we were going to move forward without the zoning committee recommendation I think it's important to have um I think some agreement or um maybe um a light recommendation I'm not sure how to propose it but I I'll defer to you Mr chair without objection yeah so colleagues questions comments everybody is overwhelmed okay uh I have a couple the subject of alleys so alleys were a controversial Topic in the context of the unintended conservation option what are we doing about alleys so we want to be really clear that all alleys are not bad Alys can provide service access they can provide a secondary you know um access to a unit the issue is is when alleys are the only access to a unit you are putting every car trip every service trip on that so with compact you are allowed to you are allowed to do alleys but units 70% of units must face have their front door on a public street so if you're providing alleys in the rear that is that is okay but you have to have a street out front so 30% of your units can be accessed off an alley we feel like that is a balance based on what we've heard from the development community and um what we've seen in our previous text Amendment with conservation development and so we're trying to balance those two things with the long-term maintenance of having 70 to 80% of your units on an alley with 20 foot wide access and no sidewalks and no Street trees so we also now are requiring if you're if you're just access accessing your unit off an alley you have to have a sidewalk in front of the unit and Street trees in front of the unit if that makes sense so on the opposite side of the alley so uh and you're saying that the industry representatives were kind of okay with that because telling them they can also have alleys when you require that they have streets is not really responsive to their concern which was they were saving money by relying entirely on alleys in these higher density developments so have we reached some kind of an understanding or where do we stand done that one I I do believe we've reached an understanding I think that we want to um get some projects going with the 7030 we've seen a lot of testing and we know that it it will work I think if we need to further consider calibrating that in the in the future after we see you know six to eight months of projects coming in we're open to that but I think we feel really strongly that public streets are very important um we've been committed to and will continue to Main commit remain committed to coming up with Creative Solutions to keep them as affordable as possible and that can deal sometimes around utilities and just the dimensional requirements of them um but but I think that um we feel comfortable and confident that we've we've kind of met in the middle on it is there uh any room actually now for I mean is is the text locked or can we still entertain uh requests and recommendations it would if we were to change it it would happen after um hearing but we can I mean it is not like um written in stone somewhere where there's nothing that can be changed I think we're looking at um you know people have small tweaks or comments or conversations they want to continue to have around pieces of it we're open to that because there are I'm told some industry issues still that are are they still under discussion or have we reached the end in terms of the latest we talked to um the development Industry Group about it there were there they owed back to us a couple small they said they had a couple small additional comments like Nuance in the way the language is written and making sure that we have it in a way that's implementable so we are waiting as far as I'm aware to kind of get those that feedback back and we've been committed to them that we'll receive it and review it and have dialogue around it and and you know further discussion if need be and I think they um there are some in the development industry that would like more like us to allow a higher percentage of triplexes a higher percentage of alleys and we feel as though we've looking back and testing I I think the the recommendation that we have today is what we're planning to go forward with so okay and uh you said 25% of lots are triplexes they have to be on Corners in in developments over 2 Acres our proposal is that they do not have to be on Corners that it can it's 25% of total lots to give some design flexibility for phasing and um delivery so that you can place those where they make the most sense so what percentage of total units would likely be triplexes because the remainder would be less dense right so so what percentage of the total units would you expect would be triplexes if 25% of the lots have triplexes uh I'd have to run the numbers on what that would equate to that's fine let us know um okay so if there are no further comments from committee I guess I'll just uh lob the question out there does anybody on committee think that we should not proceed with this ordinance on the schedule that was proposed Miss Molina oh no I'm not objecting no no no let's get let's find out okay uh who do we still have online are we all there I'm still here and I don't have any objection okay thank you uh Miss Johnson I'm I'm fine we can proceed can always discuss later so we will take to the full Council that there was no objection from this committee to moving ahead um and uh I think with that I we good did you want to speak um no I actually great job I think this is um I I like that we're moving ahead I you know on the inside of me I'm struggling a little bit because we're still testing but I like the idea that we're still going to entertain any future adjustments if we need to this might be the right mix based on some of the feedback so I'm ready to move forward I would be interested to know if we can get from the industry based on our past conversations the kind of price points they think they can build to based on this ordinance because that's critical for us right I mean we're trying to achieve affordability they're telling us you can't have affordability and all the open and Etc so uh let's see what this implies as far as that's concerned but uh otherwise I I'm fine with moving ahead I'm not hearing an objection and unless anybody else has a comment I think we're done look at that four minutes early yeah yeah so do I have a motion to ad so moved all right thank you yeah thanks everybody right I mean we're trying to achieve affordability they are telling us you can't have affordability and all the open and Etc so uh let's see what this implies as far as that's concerned but uh otherwise I I'm fine e e e e e e e e e e e e e for [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] spe on on [Applause] come BL [Music] for [Music] [Music] [Music] [Music] for [Music] [Music] for [Music] [Music] for [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] w [Music] [Music] [Music] for e you can begin Das uh and then uh and those who are um um watching virtually uh and then I will introduce the topic uh and turn it over to uh the city manager Jason Jason Schneider City Charlotte Marcus Jones city manager Tracy dad City manager's office Malcolm Graham city council James Mitchell city council Ed DRS Committee Member margerie Molina Committee Member Char car Committee Member James Carter Economic Development Towanda Brown Economic Development want to thank everyone for being here today uh those who are visiting with us virtually when I ask you assistant city manager Teresa Smith Chief Financial Officer Matt hasted City [Music] Treasurer and okay so we want to thank everyone for um being with us today uh today's agenda is economic development to update um uh other uh what we've done in the past actually the itum before asist really to consider a public private partnership between temper sports and entertainment uh in the city of Charlotte the last three weeks U meetings we've um had an economic development tool update where we describe a wide variety of tool and options within our portfolio the the the economic impact of investing in an NFL stadium from the public side is a complex issue that requires careful consideration from the Charlotte City Council investing in the state and will stimulate economic growth through job creation increase tourism enhance our national and international profile attracting media attention and boain Civic prod having an NFL team in Charlotte plane and a modern building will continue to support Uptown viability for local businesses like restaurants hotels shops and those who work in them I want to take this opportunity to thank the hospitality T Alliance for their support throughout this process as well as this um shotte convention and visitors bureau um again a lot of work has been done with the last um couple of months and years on this particular topic uh and I will turn L to the city manager for any opening comments that he may have uh thank you Mr chair Mr Vice chair and to the uh the committee um I just want to start off by saying that this Council has had a number of big items before them over the course of the last year or so Mobility housing Workforce Development and I think there's this this thing called a $4.2 billion budget that you may be discussing in the next couple of weeks uh the city's growing uh the Region's growing you've been created this environment where businesses and individuals love to call Charlotte home even somewhere in the middle of this process you even attracted a medical school and that was one of those pieces of our tapestry that was missing in terms of being the largest city in the country without a a a medical school I say that because we don't look at these items in a vacuum and I'll say it again this it's a pieces of our overall tapestry that comes together that makes Charlotte Charlotte so I'm excited today to discuss with the uh committee adding to that tapestry uh the city as you've said Mr chair's built on public private Partnerships and this one is no different there's a great opportunity for the city and temper sports and entertainment to come together to add to that I thank you chair and the vice chair and the mayor protim who worked as a work group for us so we could B bounce ideas and Concepts off of you I think we're in a great place today and I'd like to turn it over to the person who's pulled this all together Tracy doson thank you um manager Jones so let's let's jump in to the to the meat of why we're here but before we do I want to ask because I know there's a couple people around the table that have um have been here in Charlotte as long as as long as I have or longer and ask you if you remember where you were when it was announced by the NFL that an expansion team would be the Carolina Panthers do you all remember that I mean I'm very vividly remember where I was um do you remember where you were in 2003 when the Panthers won the NFC championship and beat the Philadelphia Eagles do yall remember cuz they weren't in Charlotte when they won and there was this city was still electric um over that win and the fact that we were going to go to the Super Bowl and it's the same enthusiasm that we see with the Charlotte FC games and so you don't have to be in the stadium to this be a part of who we are in our city um as the manager said we're finally here today and we've kept you informed along the way but now we want to give you a full look um at what this deal looks like before I do that um it was mentioned um thank you manager Jones this has really been a team effort and I want to acknowledge um all the various people throughout this organization that have really worked on this through CBI General Services planning Economic Development cat se. legal Danielle with Workforce Development it's been a team effort to get us to this point so let's dive in um since we have a lot to cover and talk about why the first question we should say is why would we consider this investment into our Stadium this is about securing a Community Asset as I said this is something that we all have a connection to NFL or MLS the facility itself is almost 30 years old um and we need to continue to think about it but most importantly this facility generates more than a billion dollars a year and economic impact it this far exceeds other facilities that we've discussed investing in with hospitality and tourism dollars this supports 9,000 jobs annually generating 54 over 54 million in taxes so think about the impact that it could continue to have if we secure uh both teams here for another 20 years over a billion in taxes generated over 22 billion in total economic impact it's under the ownership though of teer sports and entertainment that this impact has grown to over a billion their investment in bringing MLS here and their willingness to open up um and bring more concerts and more events here so now we've expanded to more than 40 events annually Panthers Charlotte FC the concerts was anybody at George Straight Chris Stapleton this past weekend um that concert was one of nine venues that uh straight and Stapleton selected throughout the the country on their tour this year um we have coming up the 24 Copa America that's coming this summer we also um the the facility has also become the top performing venue for ticket sales compared to other NFL stadiums in 2024 so let's keep in mind too that we've talked about Uptown Vitality over the past several months nine out of 10 Uptown visit days in 2023 the top top 10 had Stadium events so this is important when we think about it it's not just about the building itself that we're investing in we're investing in uptown Vitality others in the community also see the benefit as well think about the hospitality industry Hotel employees Uber lift drivers bartenders the small business Community gains when there's events at the stadium now to the deal the deal itself let's talk about it a little bit so what we are looking at is a 6 $50 million public investment into the facility to modernize and improve it the investment would occur between 2025 and is capped at the 650 we are a one-time investment terer sports and entertainment would be responsible for the rest they've already made significant investments into the stadium to bring MLS here um and to make it a year round facility you'll hear more about that later but our investment in the stadium creates both the long-term future for the Panthers and Charlotte FC to stay in this location for up to 20 years temper sports and entertainment would invest 150 million in the construction years they would also be responsible for the cost overruns of the work that is committed to remember I said our our money is Capp and they would also have the responsibility for operations and maintenance throughout 2024 202 excuse me 2045 I'll get my dates right so let's look at the Timeline a little bit more this is a visual of it of how the $688 million temper sports and entertainment investment really extends through the life of their time in the facility for us again it's a one-time investment that happens over the series of four years so again this shows you how at the end of the day we're really looking at investment into the facility to keep it in good work working order order and deliver to patrons um as as well as looking into the future for the next 20 years and it's over billion dollar investment so as I said before the city funds are capped temper sports and entertainment is responsible for cost over runs and additional work that may occur they're responsible for the operations and maintenance costs for the extension the life of the extension tsse funds are contrib uted in a proportionate amount as City funds are contributed so as we draw down and you'll hear Matt and Teresa talk a little bit more um Coming slides but as we pull money and draw down debt they will put in money and um into the projects as well the city funds this is what's so important this public investment that goes into the stadium we're paying contractors we're paying local companies for the work that they are doing on the facility I think many people received an email or a text this week weekend about the work that was going on at spe Spectrum Arena and how our investment was putting local companies and local workers um into the arena and doing the work this is where our money is going also we're reimbursing we're not just writing a blank check it's important for everybody to know it's for specific work and then there's a 20-year non- relocation for the Panthers and Charlotte FC in the last five years they do have an option where they could leave but they would have to pay any remaining debt related to the investment back to the city so that we are made whole so the work itself this represents a combination of necessary work that's needed in a 30-year-old facility it's also a representation of some of what temper sports and entertainment has heard from patrons in what they need and expect in order to attend events at the stadium it's also Improvement M ments that would bring the facility further into the community growing this as a Community Asset so what you have here in tier one is City mandated work this is really where our money would be focused and this is where the teer sports entertainment we talk about Co cost of runs would focus on tier two is that if there were savings we could elect work for City money to go into that second tier of work it might be a combination of City money and temper sports and entertainment money and then tier three is specific to the owner elected work um that is where our money would not go into that work there's a couple of additional deal points to mention um City us dayss this always comes up in our conversations of these public private Partnerships um teer sports and entertainment has increased agreed to increase the days from 5 to 7 days we've also talked about access to the cat's lot which is adjacent to uh uh Johnson and Wells uh student dorms and The Practice Facility it's a it's a small piece up on Fourth Street this has really been a conversation with the Fieldhouse to allow for better Ingress eass and parking to keep traffic off of Cedar Street the other piece is traffic management historically the city has invested 250,000 a year in traffic management for events we are increasing this to 500,000 a year due to the increase of events um going from 10 annually to 40 annually we feel like this is Warr is a warranted increase we've also agreed working with the TSC team to develop a traffic management plan there's a lot of different types of events at the facility now and it has different requirements from police and fire and how those are operated with traffic management and Ingress and egress there is also um a willingness to address greater accessibility and a sustainability in the work that we are doing and again you'll hear a little bit more about that so now we're going to turn it over to Matt and Teresa to talk a little bit about the funding and the financing but before we do that I want to remind everybody that we would not be having this conversation here today if it wasn't for the hospitality industry leading a conversation last year in Raleigh to extend the sunsets the Sun sun sets were set to expire in 2038 um and rileigh graciously approved extending the sunsets to 2060 which creates the capacity that Teresa and Matt will talk about with that I'll turn it over to Teresa and Matt thanks Tracy so I just wanted to start with a reminder that for this project we would not be using any funds from the general fund as you all are aware we maintain our Hospital it Revenue funds and so for this project we would be using the convention center fund and for that fund the uh revenues are required to be spent in a certain way so next slide so again here here is a reminder of the three funds and we have the convention center fund highlighted at the top this is the fund that we would be using for this uh the two revenues that are in this fund are the pr food and beverage tax and a portion of the occupancy tax those taxes can be used on stadiums greater than 60,000 seats and ancillary Associated facilities so that is the funds that we would be using for this project next slide so I wanted to talk a little bit about the hospitality capital investment policy that Council approved back in 2021 this policy puts into place both guiding principles as well as some Financial parameters to ensure that any investment that is approved by the counil aligns with these things so when we look at the guiding principles we look at things like the economic growth whether an investment is self- sustaining ensuring that we have a comprehensive Investment Portfolio for the things that we invest in and then also leveraging our private sector uh partners that that we have on the financial parameters this is really where uh we get into how we uh model affordability for projects so a couple of things within the policy uh first of all that fund balance is maintained at 100% of the following Year's Debt Service then we also have uh what's called a recession mitigation Reserve where this looks at a 5-year average of the revenues and we hold a little bit uh of that into a reserve fund to hedge any downturn in the revenues that may happen in the future we also make sure that the term of any debt that we have is aligned with the useful life of the asset and then we also consider any ongoing maintenance that would need to be provided throughout the life of that investment and one one thing to note on this um you know we we talk about the city's AAA credit rating one of the things that uh credit rating agencies like is policies like this so having a policy that guides the Investments where the council is reviewing these things in advance uh is seen as a strong management practice by the city next slide so one of the things that we wanted to highlight is the financing structure uh currently for any Hospitality Revenue projects we are using what's called certificates of participation this requires that we Grant a security interest in the asset that's being financed or collateral so if you think similar to your home mortgage that's uh a similar analogy for how certificates of participation work what we are evaluating is the use of special obligation bonds this is something that we can do uh under current North Carolina statutes because the location is within a municipal Service District uh and this would support downtown revitalization through tourism facilities so what's different about special obligation bonds is that rather than pledging collateral we would pledge revenues and as I mentioned before this would be the prepared food and beverage tax as well as the convention centers occupancy tax uh from a policy persp perspective those two taxes will fund The Debt Service and maintain all the policy requirements that we have from a marketability perspective we would look at pledging an additional Revenue to ensure that we're getting uh reasonable cost for our debt service and final bullet there is that using the special obligation bonds still uh meets within the hospitality Revenue policy so with that I'm going to turn it to Matt HED to talk about affordability thank you Teresa go to the next slide so this is a sort of recapping a little bit of what's already been discussed um as Tracy said the total commitment from the city would be up to $650 million um so this would happen over basically four tranches um so that's what we highlighted here for 2025 26 2027 and 2028 um sort of the and this is to really align with both how affordability as far as us being able to afford the sort of the debt issuance um over time but also really just the actual cash flow of the projects that would be done as sh really highlighted there's a lot of events here going all year round so you can't really shut down completely so these are going to take time um over several years to really roll out 100% so this is sort of matching both from a debt affordability as well as a cash flow uh perspective um and one of the main ways we are able to finance these types of projects in the past um across the city or using Bond anticipation notes or lines of credit um so these are really construction period financings that allow us to draw down funds to reimburse um vendors contractors subcontractors over time and then able to sort of refund the city um sort of General bank account and then at the end of say a 2-year period of using this line of credit we're then able to convert it to traditional fix rate debt um and any type of debt we do issue in the long term um as has been mentioned before be tied directly to the non- relocation agreement so go extend no later than FY 2046 um and as Tracy mentioned one of the really critical parts of of this sort of structure that we're looking at is If U temper sports and entertainment does decide to exercise their ability to leave following the 2039 um fiscal year they will be required to fully fund a diffusant account with a trustee that allow us to to legally remove all resp responsibility to the city for any outstanding debt related to the improvements to Bank of America Stadium go to the next slide so this is a slide that we we've used a little bit over time and and this sort of goes back really well to what Teresa was talking about as far as sort of the the hospitality investment policy so you can sort of see some of those things that that were outlined so the resery policy again is the uh recession mitigation reserve the restricted for Debt Service is 100% of the next Debt Service and then we have an available fund balance on top of that and one thing to to note for the available fund balance is that it is what that is sort of signifying is that is in any given year above and beyond the explicit sort of budget or requirements by policy or procedures that are have to be reserved it doesn't mean that it's not programmed for future utilization but it does mean in that given fisal year that we don't have a direct Demand on it and really what I think this sort of shows very well is that you can kind of see that fund balance is going up till about 2030 and then you can sort of start to see it come down because we're sort of building fund balance now that the legislator did extend the prepared food and beverage tax and then it starts to draw down as some of those future um debt issuances come online as that construction really occurs at the the stadium there the next slide I think this goes back to to Tracy yeah thanks Matt and Teresa I appreciate filling in especially while you're um out of so let's talk now about the community benefits plan we're still shaping this part however this is also where we really want a lot of feedback from from you all um I've divided this up into really looking at this in three ways opportunities for the community opportunities for individuals and opportunities for local businesses and as we shape this if we can keep that in mind I think it'll go a long way to how we create a robust plan so community support and Civic engagement benefit to the community as a whole I call this the council member Mayfield chapter um she and I had a great conversation about what does it mean to a community benefit mean and she said access really everybody in our community can have start to feel like they have access and they have connection connectivity to this facility so some ideas that we've thrown out um in working through this plan is could you partner with me ber schools to recognize graduating seniors some way could you develop a neighborhood engagement strategy to bring neighborhoods into the facility uh temper sports and entertainment currently does an annual local high school game that they started last year could we continue that if the scheduling permits or the turf permits you know some high school seniors that play football might not go to college and play football how much of an experience is that that lives with them as they go into college and get to have played in a professional football stadium other things to recognize is that there's ongoing player and staff participation in local philanthropic organizations think about former players that have stayed here and really are continuing to shape our community since 2018 teer sports and entertainment has and related entities have contributed more than 44 million to the Carolinas and 28 of that has been in Charlotte specific um there's been 400 Community appearances with active and former players in addition to that they've given over 25,000 backpacks filled with school supplies 4100 children served in the NFL play 60 last summer um and 29,000 more than 29,000 middle school students across the Carol's engaged in the NFL character Playbook on the charlot FC side we have 11 mini pitches across the community and last year there was more than 5,000 tickets donated to nonprofits and Community organizations so we want to continue that for the individual in our community we mentioned this investment in local business and workers but we've even asked ourselves can we do more and so we've discussed engaging no less than 10 apprenticeships in the trades utilizing local apprenticeship programs this could be on the construction side or the tsse side um we want to connect local Workers Local Workforce Development training programs and Source local Construction Talent um as well as engage contractors in prioritizing local Workforce Development efforts we're going to hear a little bit more about this in just a second moving to the businesses we want to think more strategically about local businesses to achieve meaningful and Lasting benefits for our community so ideas that we've had around this are engage and recruit historically under represented firms such as those that are lgbtq owned veteran or disability owned want to collaborate with local small business partners and organizations to identify mwsb and other represented firms we can bring them into the mix we'll do Outreach to local businesses about upcoming opportunities utilize what exists as our small business Round Table partner Roundtable as a pathway to finding some of these companies finally our mwsb strategy we have a targeted goal of 27% but I'm going to be very transp parent with you all that's going to be a tough goal to match because we have some very specialized work we want to keep it as a Target but we also want to think more creatively about ways to build capacity as we've discussed this is going to be a conversation this is going to be work that happens over several years and so what can we do like targeted recruitment events or compreh comprehensive marketing strategy to support capacity building strategies utiliz existing programs that are out there um and register in WSB on non City funded Stadium work where where possible and even look for other areas of operation within the stadium that we could utilize mwsb I'm going to jump quickly to the timeline but then we're going to come back around to this part of the conversation because I think it is so important that we get this piece right as we go into the next several years worth of work so going to the timeline this is what we're suggesting for your consideration we're here today finally um rolling out the deal and giving you the overview of the deal we're going to have uh Caroline Wright from teer sports and entertainment come out in a little while and talk about the building and the projects she's not here to negotiate she's just here to talk about the building and the projects that we've discussed we're also going to dive into the mwsb strategy I've invited uh Pat Rogers the CEO of Rogers Builders as well as Lorie spratley the COO from leaper construction to come in and give us a little bit of insights of what we see in the industry um that'll happen today then tonight we'll do a recap probably a recap of the presentation as well as a little bit of a recap of the discussion we'll launch the community and public feedback initiative which will be a website we're going to encourage people to go there to really give that Insight so we have real time in what the community is thinking from there we'd like to come back next week at your action review I'd like to bring in David Abrams from Inner Circle Sports who you've met several times over the years give a feedback of the public give an update of the public feedback and also respond to any Council questions or comments that we've heard from you today from there a special committee meeting on June 12th to talk about the economic impact in a little bit more detail and also gets some of the industry input so you have perspective from there we would also bring in the teer sports and entertainment leadership group so that you can hear from them directly um we have a lot to continue with this but we really want you know a good opportunity to do deep Dives where we can and also make sure that we're answering your questions so now if you'll let me go back to the nwsb park I want to invite Pat and Lori in Lori or Pat excuse me has a hard stop at 1:00 which is why we're doing this a little bit different going to talk to them hear a little bit of what they're hearing in the industry and then before we bring Caroline right in um maybe get everybody to give their comments around the table chair Mr chair um and then we can go into some of the work that's specific to temper sports and entertainment does that work uh yes ma'am first I want to thank you for the presentation and do a quick recap um so that you know we all on the same page um 6 $50 million public investment uh no General funds are being invested in the in the project so these funds cannot be used for affordable housing education Public Safety Etc narrowly tailored uh towards um travel and tourism uh no blank check um there'll be in a reimbursement so um they perform the work the city reimburses uh there City mandated projects are going first in tier one uh there's a checklist that protects our AAA Bond rating um it keeps the team in Charlotte for 20 years 15 years a hard five ass soft tether uh uh there's a website for public involvement and engagement uh Community benefits is a critical portion of uh this deal and in particular uh minority Women Business Enterprise participation throughout the project so with that would like to take the opportunity to welcome uh Pat Rogers uh and uh the representative from leaper to the table and I should know your name Lori mistake of the the mind not the heart uh Lori uh welcome you two ladies to the table thank you so just to reiterate we've asked Lori and Pat to be here today to talk about the ecosystem it's not representing as as um pepper Sports entertainment or what they're doing with that project is really to talk about the ecosystem and and what you see in so I will start you all off on an easy question hopefully it's easy and then we can see where the discussion the discussion goes um you've LED multiple projects with public investment and nwsb participation goals can you share experiences in this area specifically what strategies you've found successful in increasing mwsb participation or challenges that you've encountered along the way P start okay well obviously I think the success stems from being very intentional um in ensuring that and I heard it earlier that everyone in the community is included that's very important to us it always has been um it there are challenges of course uh we're very fortunate to live in Charlotte um and in this community where we have a lot of construction going on a lot of people heard med school mentioned earlier um so capacity excuse me is an issue uh but it's not insurmountable um and I will say that I personally believe the city already does a good job I think working more in collaboration with Private Industry uh we can do a great job in providing that opportunity and that accessibility uh some of the things we found successful is by partnering um minority firms with majority firms that's sometimes very difficult to do doing that uh we hold workshops ourselves uh we have a financial Workshop coming up in two weeks where we're going to do our virtu our first virtual Workshop in helping firms understand how to navigate through the pay application process on a project what they can accept uh expect and we make resources available for them to do that you know it's a enlightened self-interest for our industry to make sure that we have more capacity and I firmly believe one of the reasons Charlotte has been uh so successful in tracting businesses is because we do have that capacity but we have to grow it we have to keep up with the growth of the city and that is going to take a lot of work uh and an awful lot of of partnership between private and public laor and we talk about Pat mention capacity it's big when you look at minority firms the biggest thing is from a bonding capacity one of the things that we're doing at leaper is how do you um change that if there's a particular package we're looking in let's say MEP if this package is $100 million and we have a entity that's a minority owned small business entity how can we actually go in and break that particular package down where those in individuals will be able to be able to bond if they have to bond and be able to work on those projects another thing we're looking at from a prot standpoint how do we continue to look work on projects whether it's syia County working alongside with the CBI team making sure that they're being coachable and teachable when it comes to the bids that they have appropriate information that they're not being disqualified because they information was omitted I I got a quick question what specific areas can we proactively address to recruit and train additional mwbe firms and how can the city better a partner with contractors to enhance W mwsb firm participation and support their growth I think what a lot of what L just said about bonding but it's also more than that uh it's really getting them comfortable with the processes that they have to work with um we all started somewhere um I started out not knowing anything um a lot of people helped me and I think it's really important for us to help as well uh and again I think it has to be a collaborative effort um I think La I said breaking down the packages sometimes that's easier and some disciplines and some disciplines it's not uh I think we have done a really good job U with the city and the county in trying to make sure that we have good databases uh that we reach out to those databases on a regular basis it's not just when a project is due you have to work it you have to really be intentional about it you have to make sure that the majority firms are aware of who those minority firms are that are that are accessible that are approved that are willing to work with them it it we we employ two full-time people to do that uh but it's not just those people's uh responsibility it's my responsibility and everybody in the company's responsibility another thing we look at U from Libra standpoint often times when you're going out for a bid did you bid correctly so we our estimators are working alongside with those companies now to ensure that they're presenting their packages correctly when we look at coming on as a minority contractor often times is that when you're working with that majority company you're getting the positions at the lower level so so for example the field coordinator versus the project engineer one of the things that we're encouraging as well as for ourselves that we're encouraging our Pro companies is that if you have a continued relationship with these majority companies that each opportunity that you should be increasing so if you started off as a field coordinator the next opportunity should be as a project engineer and you're continue to move up and we know in construction is based on volume we're looking to continue to scale companies how do you scale you have to have that cash flow coming in and if you're always having the bottom of the barrel I would say the project Engineers or the field coordinators then you're not going to expand able to expand members um any questions um mayor pro thank you Mr chair and thank you both for being here and the wealth of experience that you bring um to this conversation is very much um acknowledged I I'm interested in you know quite often we hear here in Charlotte that we don't have enough of our um mwsb uh participants who are participating in some of the core industry activities and they get some of the ancillary contracts can you just from your experience just provide any guidance to us of what we can do as we think about building out and helping to lift up mwsb contra contractors in some of those core areas should we be investing in more apprenticeships is there anything else that you believe the city can do to help build up those areas take this B I would say it does start more so working alongside with our school systems we know you think about CMS they have enlist enroll or employment working alongside with identifying those students that work in apprenticeship whether it's at the Rock in addition we look at I continue to go back to packages electrical is normally a larger package on any project is there an opportunity for those minority companies to do like instead of doing the full electrical package they're doing temporary lighting we know when you start the project you have to have temporary lighting until you go to the end of the project those are another um opportunities I think we have to be more strategic and it's just not electrical well what's all the components up to electrical to be able to enhance those overall minority companies another thing is when you look at minority companies is there an opportunity for them to expand with other verticals within their companies so for example if you have a painting company is a do they opportunity to be sheet rocking do they have opportunity to do the mill work so as they continue to expand they have additional verticals would op um ultimately would bring in additional revenues for them and so he trying to say if you're just a painter what else can you do other than painting and I think as we work along onside with the CBI Steve and your team over there identifying who those participants are understanding what their overall DNA makeup is okay any other questions members as you can tell under our community benefits uh mwbe participation is going to be extremely important to the council and and this committee and this won't be the only opportunity we have to discuss this as you are from the outline will will be um nipping at this for 30 days uh and so there'll be other opportunities to talk specifically um internally as well as externally to our partners about how do we get the best bang for our dollars for the constituents in terms of making sure that they're part of the economic impact of this project so um I think that's really really important to us uh and so I don't see any additional questions on this particular topic so we may have yeah any last comments ladies no anything we can do to help uh we're happy to I I would just add one thing I think all of you can encourage those minority firms to make sure that they're in the room be sure they're in the room throughout the entire project uh that they understand that they take something with them not just the the financial capacity but they've grown their overall capacity and the knowledge of how to do the next project that's really important and I would say it's also important as it relates to the overall majority firms that there are some incentives in there for them to making sure that they have uh the minority participation on their various projects Lori Pat we really appreciate your uh your being here today and providing that insight for us and again this won't be the the only time that we talk about Supplier Diversity and mwb participation on this particular project um Tracy I think that's it I want to thank you both for for coming in thank you sharing your insights and spending a little bit of time with us today thank you thanks so before before I bring in Caroline Wright who's uh teer sports and entertainment Chief venues officer um I wanted to get initial comments if you had any comments because again Caroline's really going to come in to talk about the work that we're doing um but I want to get comments on the on the deal or initial thoughts so the floor is open for comments um Mr drgs Mr chair I wanted to note first that the agenda that I'm holding says that we are talking today about Economic Development tools I corrected that you did the public was notified that this was going to be the subject yes I I requested that earlier this morning that no one is surprised yes um so uh wanted for one to express my appreciation to temper Sports and the Panthers for the value they bring to Charlotte uh and the investment they've already made so uh appreciate the prospect of a partnership with them uh for the Panthers um I'm curious at this juncture there's a lot we could talk about this is a very high level description uh when when are we going to get like term sheets in more detail and can we please do so so as to have time to get down to another level in terms of the terms and conditions all the various Provisions termination and so on um because I think we're going to need to uh uh understand you know how this deal is put together and the various contingencies so if we can have more detail about the structure that would be great uh what I did hear if I understood correctly is that no debt will be incurred that matures any later than the end of the soft tether period correct and and we uh from what I also heard from an earlier question we expect that the outstanding debt balance at the end of the hard tether is going to be on the order of $400 million according to the kind of preliminary schedule which I would just knowe would constitute a significant barrier at the end of the hard tether to the team's departure so we're we're looking basically at a 20-year Horizon um worth noting in case anybody didn't know uh teer Sports does own the stadium so uh that's a thing that we should be aware of in the context of the Investments we're making but um I think there's just uh a lot more to talk about this is a good opening proposal and uh look forward to learning more about the details thank you thank you Mr drgs any additional questions in reference to the deal itself again my my comments earlier kind of spoke for itself and and I've been very close to this as well as council member Mitchell and and the mayor protan with the last several ways uh and as I said earlier you know public private partnership is the Hallmark of our cities how we've developed as a community on a wide variety of issues and I understand these deals are uh complicated uh as relates to investing in sports structures whether it's Spectrum Arena and on Bank of America I think we're off to a good start obviously there's a lot more questions to be answered uh as Mr drgs uh indicated uh there's a a philosophy that I'm operating by which is trust but verify um throughout this process in terms of making sure that the staff and our legal team do eyes and cross te's uh but when you talk about the economic impact of temper sports and entertainment and what it means to so many people that work in this industry uh and it goes without saying that the hospitality tourist Alliance are fully supportive of of this agreement uh spoke with Muhammad on on yesterday um and reference to it and so uh one in nine individuals in the city of Charlotte Works in travel and tourism and as waiters and waitresses and bus boys and bartenders and the small business owners uh they really um bring life to that industry and um Charlotte and Uptown now is more Thursday through Sunday then Monday through Wednesday where most of our visitors now are uh coming for sports and entertainment and our restaurants and certainly having uh a renovated modern facility will continue to provide the type of impact economically uh to support our constituents that we're looking for so I think this is a a good introduction um the devil is always in the details and I think over the next couple of weeks as we approach June 24th um staff is opened um to answer a wide variety of questions and concerns uh in reference to it and certainly getting more information if necessary so l m yes thank you Mr chair just really quickly I I don't know if this is the place that I could really add just a parenthesis right um around um just that Community engagement piece um I I think I spoke to Tracy about this and and it's something that I'm I'm very interested in kind of making sure that we are intentional about right we have so much opportunity there and and what I what I really made kind of an analogous statement to was you know I think about uh going to somewhere like Boston and Lambo right and getting off the plane and you look left you look right and you see people with the paraphernalia on right you see people that are locked and bought and sold into the brand and I think that's an important uh piece of this puzzle is how do we get the community members to buy into the brand and understanding that like like um Miss doson said at the beginning of the conversation we have a we have a new franchise right I was I remember growing up it before we got the Panthers there was people were either a Redskins fan or a Dallas Cowboys fan because we really didn't have a team to you know attach to um someone else or a Steelers fan what you weren't a Panthers fan right and so you know I think there's still you know some opportunity to really bring the community members into this brand you know and and really you know uh connect to it right and those connection points are made by way of these you know in Opportunities where we go into the community and we do these engagement pieces and Workforce Development hats off I miss Danielle Fraser's in the room um she actually um done the first uh Workforce sub at Central pedmont and we got some stakeholders at the table uh that are ready to engage the public and and get some jobs so I mean it's just so much here that I'm I'm really looking forward to kind of hashing out and I think we do we have a wealth of opportunity to engage the community members and and make sure that they come along for this journey as well so I I I concur with you and while we have a framework here that we're governed by I think the community engagement piece is one that can be um kind of played with a little bit I think they will be open to creative ideas that would kind of embrace the community more than what we're doing um but a ticker tape parade would certainly help if if we didn't cut that from the budget on th I'm not sure we we may have cut that from the budget um but that will certainly help everybody I'm sorry I'm sorry stop stop stop we ready to go to the next work good so so now I'd like to bring Caroline right uh temper sports and entertainment Chief venue officer and to talk a little bit about the work you heard me say earlier it this is specialty work right and so scoreboards and Bowl seating and things like that and so we talked a little bit about the mwsb strategy but then also K can give a little bit of perspective on when we talk about their future investment in in years 25 and on or excuse me 2029 and on um scoreboards don't last forever they don't last for 20 years um they're constantly upgrading on the concrete and some of the joints in the concrete those things have costs so Caroline can talk a little bit about the work but I think first the more exciting part that she has is is the video and one last thing before we start um we've talked about this partnership being for years I do truly believe in this uh leadership team at temper sports and entertainment we've worked closely with them through this process and this is the right team to execute on the vision Caroline has extensive knowledge um before coming to Charlotte and experience and so again I believe in this team in fulfilling the vision for Bank of America Stadium so with that Carolina great um I'm Caroline Wright Chief V's officer for Tupper Sports entertainment uh thank you very much for having us here today uh members of council and the committee we'd like to kick off with what we believe to be our ambition for the stadium they say home is where the heart is for almost 30 years you've helped make uptown Charlotte our home it's much more than a stadium it's the layer where we keep pounding y for oh down What A Catch and a fortress fit for the crown a brilliant go for Sol it's the song you can't get out of your head and the game you just had to be there for Carolina Panther champions of the NFC it's where we create the moments we'll never forget and experience the Traditions worth coming back for [Applause] this stadium is our home and we are excited to show you the vision for what's next this is the future of Bank of America Stadium a modernized Fan Experience featuring a reimagined exterior with a park-like setting inviting new spaces for the community to gather and celebrate sports music and the Arts new state-of-the-art audio and video technology designed to keep f F informed entertained and engaged like never before unique social spaces with stunning views of the action and the Beautiful Charlotte Skyline brand new seats and redesigned concourses with diverse concession options that celebrate flavors across the Carolinas it's a destination that draws Marquee events to Uptown attracting visitors from near and far not just on game day but every day welcome to the Crown Jewel of the Queen City last video so thank you again for having me today um as as Tracy has talked about um we believe this is a shared Vision with the community of Charlotte and together we can aim to enhance The Fan Experience and deliver a great Community Asset uh together and continue on with the cherished moments that we have all shared at one time or another at Bank of America Stadium it's the heart of the Queen City and has been for nearly 30 years I'd like to thank my friends at cccp for putting together this slide it really is illustrative of the growth and development in Charlotte and we wanted to share this slide to point out where we are relative to the growth and development the population of Charlotte has almost doubled since the building was built along with the surrounding areas and we have opened our door since 2018 to invite more activities and events we've gone from about 15 to 40 and I'm going to talk a little bit about that today and what that means for our venue um as you can see we're a little bit on the outside of Uptown kind of looking in uh we're excited about what this could bring for the future future of development in our area of Uptown and really kind of looking at the neighborhood as a whole so how have things change for us initially our venue was used for about six months of the year and uh NFL football and some college football games we really now are 12 months of the year we've gone from 30 to 13 to 40 events and those events range from obviously Carolina Panthers Charlotte FC we've got international soccer music events and we're really excited that we've been able to open up our doors that's resulted in the change and how we use it also for corporate events a significant portion of the corporate community and private Community comes to us asking for space to host meetings to host events um the building wasn't built for that but we've been able to manipulate it in a way and we hope that part of the investment in the future will be to continue provide access for the corporate and private event Community we've gone from a million fans to 1.85 million fans through our doors that's a lot of Flesh toilets and a lot of Demand on the infrastructure and certainly has a seasonal training facility to yearr round training facility and that's really important because the Carolina Panthers are here to stay they're in the building 365 days a year and they're an important part of this but also charlot FC when they come in for game day it's not just game day they actually practice at the stadium the day before along with the opposing team and so how we're using the building has changed um I best use This Old Car analogy that you used to bring it out on sunny days and that's the only time you drove it and now we drive that car every single day whether the weather is good or bad it doesn't really matter it's out and it's being driven and so we need to make sure the infrastructure keeps up with the demand so I wanted to bring you through the process for how we got to the information I'm going to share today and so what's important is we uh performed A needs assessment with Walter P Moore they came in and really looked at the building and some of you had the opportunity to share that with in terms of tours of the facility but that was about telling us how how is the stadium finding out that it's got good bones and if as long as you do a list of things you'll be able to extend the life of this of the facility and so it was really important for us to go through and really dive into that assessment we also surveyed fans and we've done some best practices and research around sports and entertainment and so it isn't just about an NFL stadium or MLS games it's about sports and entertainment in general where are we going what are we doing and how are the fan experiences changing around us and then requiring putting together the the defined requirements which I'm going to share with you making sure we've got a good high Lev estimate of what those costs are going to be obviously we haven't approached design development yet then we've got the video that we shared and we have some other renderings we'll share after and certainly leading to the road map so there's core areas of need as we go through today that's modernizing our infastructure as I've mentioned making sure that we're addressing Fe fan feedback as an example we've heard significant challenges with the Audio I can't hear what's going on it's not clear for me in certain spaces of the building the seats they're no longer made they're 30 years old so we're cobbling together parts to make sure we've got working cup holders and the so on so those are the things that we're working at that I'll speak to maintaining a competitive Advantage for Charlotte which is really important to us as members of the community and we want to make sure that we've got a great Community Asset moving forward and then certainly enhancing our impact on the community in terms of infrastructure seats that I just mentioned we need to make sure we replace all of them that we've got the tools we need um when we go to to fix and replace and those sorts of things and that elongates us for another 20 years modernized build Building Systems we're talking about mechanical electrical Plumbing HVAC structural enhancements um the building is built as 12 different individual units that are glued together if you will and so we've got Expansion Joints that we need to address and we'll do so through the life of the program we want to make sure that the out the exterior and the ability to get into the building but also for the community at whole in terms of the enhancements of illuminated wave finding we don't have a great wave finding program today but we also know that with the addition of New Way finding we can utilize that for the community so we can use coordinated way finding to speak to people who are coming up from The Greenway to tell them where they need to go in the city and so on along with our events upgraded restrooms that's a pretty standard one um we I'll talk about it momentarily but what's key there too is accessibility and making sure our restrooms are um barrier free elevators and escalators we got to move the people and we got to move them fast and so our fans appreciate when those are in good working order um technology changes all of the time as we all know and so data centers it's really important that our data center our security data center our technology from an entertainment perspective is all up to date and is able to deliver a great finan experience so we've got new stunning LEDs uh video technology both inside and out that's really important the last time our scoreboards were replaced was in 20134 and so they're reaching the end of their current life sound system as I've mentioned really important here to make sure that we've addressed that not only in the bull but when we talk about private events when you come in to to rent the venue right now you have to rent everything because those spaces weren't prepared for that so how do we make sure those things those assets are included in the buildout of those spaces we've got really exciting upper level social spaces so we have such a beautiful Skyline how are we integrating that Skyline into the stadium and from the Stadium looking out and so a really great opportunity for us to think differently and look for a social solution for that Diversified concession options how are we really embracing the flavor of the Carolinas and bringing it in house what are we doing to deliver a program that says I've come to Charlotte I've come to the Carolinas and this is a really great opportunity for me to be immersed expanded Team Store our team store is 4,000 square fet uh a little over 4,000 sare ft that's one of the smallest and we have two teams the average in the NF right now is 12,000 so really looking at our retail opportunities to expand that program and then redesign concourses so when we think about Charlotte we want to make sure that we've maintained a competitive Advantage this is about recruiting big events they want to come to us and see that we can command the demand for things like VIP spaces that we've got the right technology in place to deliver a Flawless show and execute um in a program that they are used to we're really excited about what this could mean for our neighborhood uh if you look at a map from 30 years ago the area around us has not changed so there's hope and opportunity for developers to come and and participate around our neighborhood and really kind of elevate what's going on and so we think that it's great for for Charlotte and for us together to be working on how to increase that the volume of events so in terms of our community impact um improved accessibility it's really important that this is an inclusive Stadium we had an opportunity to partner with culture City in the last couple of months from a sensory inclusive perspective one of their requirements is that we would have a sensory room we haven't been able to deliver that as of yet but we are looking forward to and have opportunities to build around all different typees of experience and the fans and what they expect in terms of having a seamless Journey when they arrive so it's not necessarily just about making sure that we've got barrier-free from from a counter hyp perspective we've got curb cutouts for wheelchairs we've got um sensory spaces and we've got the audio tools to make sure that we're delivering wave finding too is really important you know there's been new developments of wave finding certain colors don't work for those that have Vision concerns and so those things are really important to be barrier Free Safety and Security we all know how important that is we provide an opportunity as being such a big partner in that area of Uptown to provide those Solutions arts and culture we've got 30 years of assets of our own teams sitting in a well protected room in the stadium we want to bring those out but also we're looking to engage other artists to bring not only our teams but the Carolinas to life inside the stadium so we're super excited about an artist and culture program that will enable us to deliver some arts and bring artists to the table as we build this out um we have a we're pretty big from a size perspective in the community we're only open to the public if you will from a large ticketed event perspective 40 plus events a year we know that we have an opportunity on the south lawn to really create something special for the community to use when we're not open for business if you will so really looking at the South lawn and what's that doing for our community and how can we provide a space when we're not necessarily open for business and I think from anain sustainability perspective fix it first that's an opportunity for us to not tear down not demolish really invest in what we believe is a good foundational infrastructure for the future give us life but also making sure that that is a great program as it relates to sustainability you know de demolition of large um spaces has significant air pollution concerns um and there's a carbon footprint there that maybe we don't want to step into so really important to us that we're able to provide a fix it first approach so the renovation approach fans players and artists and in fans is also designing with the community in in mind and that's really important to us everyone that steps foot in our front door is a member of our community or has come to visit our community and so investing in the building will be an important piece in making sure that we've delivered those things with that mind also ensuring that the venue is operational and viable and valuable year round not just on on on event nights so what are we doing to activate what are we providing those opportunities whether it's a private rental or the land around us can be used for alternative uses from a financial perspective really important that we develop a phase renovation plan and that we are managing not only the financial components of this but knowing and planning out the schedule of events we don't want it to be disruptive and we want to be mindful of what we're doing with the dollars across the board um I'll talk in a minute about more so on msbe but we heard you and we also value the role that that plays in this program but also our day-to-day operations um we Embrace Charlotte and the Carolinas and that what it has to offer and so the MSB program will be a significant part about of this operationally the seets of of of the projects we're not looking to relocate our teams we're looking to do this while the teams are here we appreciate the community and the fans will need to bear with us as we do that but we will be working through um a a project scope that I'll share later in the schedule um and we're planning the workload to be efficient and Jud judicious with the funding from an M msbe perspective we have had a a great opportunity to engage with Stephen Coker and Charlotte business inclusion and working with Kathleen and Jennifer and Holly um meeting with de Everett RJ leapers and McFarland uh some of the biggest construction players that we have from a minority perspective having really good conversations about capacities and capabilities what are their challenges how can we support them as they work through the program but also how what are we what role can we play in add in addition to just putting out bid packages so we've talked about the opportunity for apprentiship programs having recruitment events that bring the community in to us it's not just about this project but how do we increase the depth of The Ledger of companies that are on the list provide them with the tools to be able to participate um so for us this program from an M msbe perspective really is about being collaborative we've learned a lot by engaging the team with the city and working through what that program will look like um and we're excited about the future there so getting to the schedule so obviously we're in column one right now we're working through finalizing the master plan of what Bank of America Stadium will look like we've shared a little bit with you some of the ambition um we're working through resoning of the field house and we'll have construction of that hopefully later this fall pending approval of that program we'll go then into uh Stadium site resoning so we've split those into two and we'll get into design documentation so all the stages of design development will be really important to getting into the weeds and what exactly we're doing and the details involved and that will take a significant portion of time given the size and order of magnitude of the project and then we would be looking at construction and how that rolls out over the phases this is fairly vague at this point it will be a bit of a game of Jenga for us to figure out exactly what works in the time frames we have and how we deliver that based on the sequencing of projects so I just wanted to quickly run you through these were in the video but I thought I would share them specifically go ahead just thank you so this is about the West entrance we have some property there that allows us to have a bit of a congregation space many sports and entertainment venues have areas to come and watch events that may not be related to what's going on inside the facility and we think this is a great Community Asset what are we doing that will allow us to have congregation space right now in the city when we have events a lot of activity happens on Tron and it doesn't make its way down to the stadium and so the West facade is really an opportunity for us to think differently on how to engage some of those community events in our area of the city this is um a good demonstration of from a team store perspective but also the corner of mint and Graham how are we engaging um an improved front door what are we doing from a pedestrian flow perspective and how are we engaging the community to come down and participate during the day looking for ways to incre increase pedestrian traffic this is the area on the south side of the building that we would be looking to enhance um not pictured here on the left is the South lawn that we hope to create a good community space that can be utilized 365 days and lastly this is the social patio on the 500 level that we're super excited about and really just a way to embrace the Charlotte's Skyline and also bring that into the bow so really kind of celebrating what Charlotte has when you come into the city from the airport the stadium is one of the first things that you see and so we think it's important when when fans come to visit that they will also embrace the skyline at the same time while we're providing a new social atmosphere for our fans so with that the stadium is more than just a venue it is really a symbol of the community and it's an asset to the community and we're super excited about what the future holds your feedback is really important to us as we work through what that future might look like and we certainly thank you for your time today as we consider it Caroline thank you for for your presentation um I um took some note from our at least my visit from the stadium in jangro MH and a couple of questions for you tell us about the loading docks I think people will be kind of be surprised about that so we have two loading docks um in fact one is specific for deliveries um and show load in and the other one is specific for broadcast we have two entrances from uh ground level into the stadium when we load in shows we can only use one of those um because the other one is specific to broadcast so one we're looking at creating a loading dock that serves two purposes but two for a show like Beyonce we're not the same as in Arena we certainly can't turn over events as fast as Arenas can but we are bigger and provide more opportunity so Beyonce was 89 tractor trailers of equipment wow and they loaded in through one Bay so what we are looking at is how to get creative the building was built with one purpose in mind and so what are the things that we need to do to modify some of our ground level infrastructure some of our back of house spaces so we can be more productive when we bring in events of that order could you share with us about the Production Studio I was extremely surprised about how small it was Tiny so um one of the things I mentioned was Data Centers so we have three of them one is for I'll call it typical it purposes the other one is for security Which con contains all of our security surveillance and all of our screens and technology related to security and safety and the third one is related to entertainment and so that is where we host and manage all of the team that works on all of the scoreboards so when you're in a venue and you see things happening on our scoreboards whether it's a replay an instant replay whether it's game it's creative it's things that make you laugh part of the entertainment show that all happens in a really small room um up on the fourth floor and so the infrastructure in there needs to be replaced and modernized but also we need to make sure that the team there um has enough space and so those rooms have become bigger over time and as things have modernized and the tricks of the trade have come to the table space and allocate room to be able to do that appropriately and and Public Safety you went from 8 events to 40 events a lot of people coming in and out of the stadium we also T the the public safety facility and that too wasem old and outdated yeah and and that's really the home for uh cmpd and all of the um safety teams that we bring and cmpd is a really important partner of ours and we work together on not only the traffic program but the employment of a number of officers in our facility and um the safety of our fans is of Paramount importance but also the safety of the community so when we have roads closed it's making sure that we manage the community part of that those who may not be coming to our event but we're also managing that on the inside of our building and so our security room that we house all of cmpd when we come in and do an event is fairly small um and needs to be not only made a little bit bigger but also um advancement from a technology perspective so everyone has the tools they need to do their job and lastly as tour we saw a lot of broken concrete and could you kind of expand on that a little bit yeah uh we have 53,000 square ft of concrete on our concourses 500 level and so we're an outdoor venue and we're subject to the consequences of weather um I'm new to Charlotte in the last year and a half and since I've been here we've had the coldest day in Charlotte history and the hottest day in the planet and um you know we're subject to weather changes we've we've just had two where we've had some pipes burst and so the modernization of the building from a from a weather perspective is important and so the concrete wasn't built it with that in mind and those changes to how it behaves so so we've been doing a repair and management of that up to this point and so we will be looking to kind of go down deeper and make sure that the surface level of the concrete can handle for those fluctuations yeah and I make that point uh to the committee and to the public I think everyone had an opportunity to tour that is a aging facility uh and some of the needs so I will open up for any questions Mr Vice chairman okay uh thank you Mr chair kin thank you for your presentation and uh let me say thank you also for reaching out to stepen Coker to talk about uh mwsb enhancement strategy I'm going to speak just for myself uh that's very important for me we probably looking the largest project we have ever funded in the history of Charlotte and so making sure that we can be successful on that side I think is very important and secondly on the construction schedule um can you talk to us about about selecting the architect where are you guides in the proc in that process yeah so we um have had H supporting us from a Consulting perspective um and they've been great at working through the elements um and and delivering to some of these visuals that you see today okay thank you thank you Mr chair Mr thank you um I'm interested as we look at the national landscape of stadiums right so uh and you think about what we need to do at Panthers stadium uh to what extent are you benchmarking off of others is there a hierarchy are we trying to be mid pack among stadiums um how do you identify where the investment is needed I'm assume some of it's local and then some of it is with reference to other stadiums yeah um I'm a bit of a venues junkie so every city I go to I make sure to see all different types of venues because it really is unique and different in terms of what each market demands um and so what's fit for Charlotte may not be fit for another city and that's important when considering our fan feedback and what they're telling us they might need or want to see because it may not be the same for every city so we definitely go out there and we visit and we engage uh we certainly do at the league level as well with our peers um and so we look to evaluate those against what what they're adding from the program so when you talk about technology you know sometimes it's not the best to be the first in line to to roll out fan facing technology because we haven't worked out the Kinks and so we're seeing a lot of that right now with other venues what are they doing what have they seen what are their Lessons Learned in best practices and and that's in any realm bet let's just hit this head- on dome roof it's come up I know it was a part of the analysis and that's why I just say kind of what was the thinking there yeah it's not in our plans today um we have um a great Skyline as I've mentioned today and the environment of being outside at a sporting event is a really important piece for us and and so it's not in the plans today May Pam Mr chair I have one more sure then P yeah so parking uh parking is a bit of an adventure but what in particular as you make these plans are you doing about parking so we don't have any parking um in our program today but what we do have is a commitment with cmpd to work on the traffic plan um and so it hasn't been visited in a while um and so part of our analysis will be to work on how has the city changed in 30 years how are people coming to you events how are they where are they going um we certainly see if you stand at Mitten Graham during an event you can tell when the train has led out because there's an influx of people walking down the street and so that's really changed too in terms of our gate and how the fans come into the venue and so I think our commitment well I know our commitment is to work on the traffic plan um and so while it doesn't answer your parking question I think it does overall because it will be about making sure that we've got the right closures and the right balance of how we're managing that program can can I just add to that too we spent some time working with Carolina and the team and adjacent Property Owners because you you can look where future development is very soon probably to occur making sure that one we're talking about parking access and Ingress and egress too but if a residential Tower goes up across the street how does that how is that impacted on game day so we're trying to be um proactive in that thinking um not just for people coming in or driving in to park but also people that are going to be living around the venue as well and and in your ballpark not mine but the intermot station will certainly um be uh Mr Man a way to get people there uh without having a car um May pro thank you Mr chair and thank you Caroline for being here we are very excited to have you in the city and your wealth of experience and around the industry and other stadiums you know so I I get and we've worked very hard on this deal collectively with the chair and the um and the vice chair um in Tracy and myself but you know I get the infrastru structure piece and being able to fix it first and address the direct needs but you know I'm I I want Charlotte to to be cutting edge and leading right and um we know there's some great stadiums out there I've had opportunity to do a back of the U house tour of the allegiance Stadium which is a dome a little bit different but certainly much more modern but I'm I'm I want us to you know utilize the wayang Gretzky rule right you don't win by skating to where the puck is you win by skating to where where the puck is going right so is there anything that you believe that besides just addressing the basics Y is there anything else that you believe that we need to think about be strategic and mindful about incorporating into the stadium so we can really and truly be first class world class the exterior facade is a huge opportunity for us to get creative what are we doing from a technology perspective from a lighting perspective how are we integrating the look of the stadium into the city skyline obviously we have a fantastic lighting program um that really kind of brings and accentuates reasons to celebrate so the exterior facade is really great opportunity for us to elevate today it's concrete for lack of a better term and so what are we doing differently how are we engaging video boards that can bring the community to life and provide a congregation space and so you also don't know what's going on inside when you're outside um and so the outside program could really be elevated to be creative to draw attention to I think the design of the exterior facade will be a critical piece to setting the stage for what's to come great and then my last question is I really felt good about the fact that um the straight Stapleton concert was our site was a sight of choice right and you have an artist say hey we want to go to Charlotte we want to go to that and Performing that stadium is there anything else that you think from an entertainment perspective and attracting a like large um experiences like a Beyonce uh uh concert and I'm calling it she's going to put out her third album's going to be American recum is going to be an Opera album and we want her to come and perform in the stadium first so more than 89 trailers for sure for that one but is there anything else that you think we can do to entice those large Mega experiences in the stadium um postar is an organization that measures music and entertainment um and Charlotte ranks 19th as a destination from a music perspective um that's not just us that's obviously PNC that's specom Center and the more that our community shows up um and celebrates those acts the the better it is for us as just being on the world stage so Charlotte is getting there Charlotte is getting on the world stage and it's with a coordinated effort we speak to promoters 12 to 18 months in advance advance and engage on what their artist is looking for what are the things that they want to deliver what do they want in their show and so working through and understanding things that we've maybe had said no to in the past um how or what infrastructure we need and how can we get creative with that um and so one of the things that you know we look at is what are they asking for what are they need when they're here minor things like catering space that we may put out in the parking lot today how we move that up into into the stadium as a whole how are we utilizing rooms uh Beyonce used 89 different spaces in no that's the 50 different spaces in the building to have independent rooms as part of their deployment so knowing that it's kind of back of house things that we probably wouldn't be sharing with the public that we'll be working on behind the scenes which delivers a more cohesive environment to to the promoter and to the artist all right well we have four minutes remaining so I want to be judiciously those four minutes you you put up the slide that talks about the uh the um the calendar for the for the balance of the month uh and also Tracy if you can kind of um tell uh the website that will be up where individuals could um provide their comments uh and this presentation will be uh presented again this afternoon to the entire Council so the full Council will hear it as well uh tonight um and again there is a calendar that we have established for the balance of the month mon I strongly encourage uh members of the committee as well as members of council uh for those um details related questions to um uh talk with Miss doson um offline um so that we can make sure that we utilize the 30 days that we have um judiciously um before we render a decision on on the 24th uh my my goal is to land this plane on the 24th uh and so questions comments criticism suggestions especially related to community benefits mwbe all those things would really really be appreciated um uh on the front side of this um versus the closer to the 24th so Jason couldn't find it I can speak to it it's etched in my memory um so we have tonight and council member Graham as you said uh we have uh we we'll revisit this tonight at which time will post the website um and the location of of the website so that that can get out and again we do encourage everybody um to to go to the website from there we will be back next Monday um we will have David Abrams from inter circle Sports um talk to us as well as answer questions and give an update on public feedback um after that we will meet on June 12th that's Wednesday follow um which is a special meeting special meeting and at 3:00 and that will be to hear from industry leadership about where we're going with this as well as talk a little bit more about the economic impact of it um we can also give an update at that time on additional Community input that has come that has come through and then it'll come back to you on the 24th before you go to summer break um for potentially a vote so just to follow the schedule uh Mr chair so June 3 June 12th meeting uh you you're expecting us to make a recommendation for the full Council for June 24th Miss dson I guess technically that was that is the way that would work yes okay thank you thank you okay all M and hearts uh in line uh this meeting is officially adjourned thank you thank you chair so June thir June 12th meeting um e [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] 3 [Music] [Music] [Music] oh he [Music] [Music] [Music] [Music] [Music] for [Music] [Music] [Music] [Music] for for [Music] [Music] for for [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] I [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] he [Music] [Music] [Music] [Music] [Music] this for on [Music] [Applause] [Music] Studio we're ready to go live please got love process ready okay well good afternoon everyone I would like to start by welcoming everyone to in the room and those joining us online to the June 3rd budget governance and intergovernmental Relations Committee meeting I'm council member at large dimple arira serving as committee chair so I'll like to pause here for introductions we'll start with committee members mayor Pam and then off staff thank you madam chair James Mitchell Committee Member thank you Lana Mayfield Committee Member good afternoon Dante Anderson mayor protm district one Cherry Smith strategy and budget R haris strategy and budget J strategy and budget Renee ASU assistant city manager Sean Heath assistant city manager Department transportation Phil rer uh Department of General Services Justin Carroll Charlotte Department of Transportation Mike Davis stormw Services Naima Mattis CBI Steven CER CBI Mary Ramsey the Charlotte Observer our discussion on our referral to review the criteria used for funding Financial Partners a strategy and budget staff will provide suggestions for process and criteria enhancement for the funding of financial partners and based on the discussion from the straw votes meeting last last week will also determine how the criteria may be applicable to fiscal year 2025 part ners so with that I'd like to turn this over to Marie Marie thank you so much for preparing this package and um helping us throughout this process we certainly appreciate you and Cherry both thank you I was going to say Cherry's The Mastermind the most of it but thank you so much we'll go ahead and get started if I know how to work and first off we just do a little bit of a recap of not going go into it but it's here if we want to refer back to it from the slides from last time for our actual referral to your committee um this one is one of the ones we wanted to really spend time um I hate to read things to you but to make sure we captured accurately your feedback from the last time because these are the criteria we use to build U build into our recommendations you talked about having a 7-year maximum funding term limit uh mentorship support for those who did not qualify I think Miss Brown was saying you what do y'all do with the people that try to get funds and don't get funds align more directly with uh directly specifically with Council priorities apply Equitable framework towards the funding discussions right now we have Equity measures but they're not necessarily always on the front end of the funding considerations consider potential mwsb participation and that's currently determined afterwards as well um and this was a New Concept A scorecard from staff as to the strength of the request and meeting the criteria factor in strength of performance measures how how are they plan to make an actual impact data driven approach funding quarterly upfront but this was a New Concept you brought up to us last time um trying to assess did they really turn in the reports or really make progress before we uh keep submitting quarterly report uh payments to them and consider the ratio of funding and operations to staff ratio consider maximum percent of total budget consider board diversity representation of community served I Believe Miss Mayfield you brought that criteria up for us consider holistic services that would not otherwise be provided or available consider update to equipment surface property to notify nonprofits and consider maximum funding level for first year grantees so so that's some of the feedback that you had given us at at your um May meeting and again I won't spend a lot of time on this CU this was a slide from last time we went over but if if we need to reference it it's the current process what we've been doing and here's proposed process enhancements maybe better if I can actually read it if I turn to my page so and and throughout this in the green kind of blend in with the black on the screen but the new items are in green and one of the new things we're proposing is to work to compile a listing of community organizations to notify for funding partnership opportunities I believe that's something that came out at your discussion last time some of them think well I'm working with so and so in this city Department I thought I'd be linked up to All City opportunities or they might not just even know the opportunity this period so that's one of the new proposals also an internal cross dep departmental team to with representatives from several departments in service areas to rank order the proposals um and that was a new criteria currently we pretty much give you what they submit and don't really rank them or go through them like uh council member Mitchell mentioned doing a scorecard and if funded for the previous year did do they so this is one thing do they we if they're funded currently for the previous year we we give you here's what they said there the midyear report but we don't really say oh do we think it's really hitting what it's supposed to hit the targets or not uh the organization is providing service that the city cannot provide or be cost prohibitive for the city to provide and it's not duplicative of another partner the organization has provided meaningful objectives and performance measures the request funding amount is no more than this is something new based on your feedback that I wanted to make sure before we codify the request funding amount is no more than 30% of the organization's operating budget and is for onetime expenses uh programming or Staffing like Mr Mitchell mentioned before we don't want to be paying somebody's rent and then we don't fund them and then they're out on the street the organization is using nationally recognized model or data data driven approach has established positive relationship with a community or a specific City apartment and these aren't like knockout factors for this one but that just is a plus if they're doing something that's already data deriving or nationally recognized or that the community or another department you know has worked with them the past and seen that they're capable and board of directors is diverse and or directly linked with Community being served so for that that's for the assessment of the applications did I go sorry and then for this one proposed process for selection of actual funding all applicants submitted are compiled and presented to City Council in the form of a report which details and the again the green underline is new we already give you a report but it more so is as is what they submit with percentage by category so we'd tell you what percents operating versus salaries uh we'd also rank order applicants based on the review team input that we talked about on the previous page that would be new and ass staff assess es of progress towards performance goals for ones that are existing Pro partners that part would also be new and then and then further for the selection of funding um you know Council gets you get the packet but now it have those additional components in it and you give the major feedback and give us feedback and then it would be represented in the recommended budget um and then we'd also help this would be new follow up with the ones that don't get funding and of course wouldn't follow up with them until after you officially approve the budget because but then we'd help to identify opportunities for capacity building where needed like work with them and Cherry does that some informally but we more formalize that maybe even link them with some capacity training as well and then for the funded partners and so and and this I know we're you mentioned we might talk about some things from straw votes you know the criteria for even the applicants going forward it's kind of hard to change those in Midstream when they've already applied but these okay if we're funding you we have we don't have contracts yet so we can go ahead and build these into the fy5 Partnerships um and this would be new uh term limit on funding for new I believe when we talked about this we were thinking more of not five years okay Sho you're out because you've already been here 20 years but starting now so the clock would start now with a fresh so you'd be on year one everybody once we implemented this would be on year one and payment terms so right now they get quarterly payments they get quarterly payments so but now we'd say okay let's look at what do you do with our money for the first quarter even though you don't do formal performance reporting except at year end and mid year we'd say okay at least let us know and they do um CBI reporting quarterly now too but anyway so instead of just automatically um Distributing the payments there'd be some are you up today and or reporting and are you making progress and that's something if we do move forward implementing we would need your help on because sometimes Partners might say Hey you know call counsel and say but you know then we but we would have the stuff to back it up why they have not received their but you might hear some of that payment terms and that's what I just went over sorry and then monitoring this part would be du payments would be delayed until progress to Performance deliverables is confirmed it says maybe you know depends there's always different circumstances partners that receive over a 100,000 and we talked about this some last time about how an audit's expensive but we decided Well and this is a proposal for y'all to consider if they get at least 100,000 they should do a formal audit if not and um provide a two-year comparable Financial assessment so they don't have to pay a CPA to do that but sure okay and then sorry that will be quick this is the last slide for this one and this is uh Financial partner reporting and again the these three components are already in place now the new part would be the staff would more so assess your progress not just take what they give us and report on it they already do performance measures CBI um certified utilization and Equity measures now but we'd be more engaged in assessing their progress and that's it and I thank you so much Marie I appreciate you incorporating every every's feedback I'm sure you that was a lot uh but it looks like it's a pretty comprehensive recommendations that addresses everyone's concerns um before I turn it over to council member Mayfield Mitchell and Anderson I just uh something that just came up recently it's what happens to organizations that are already getting uh $1 lease facility from the city um should they be eligible for additional funding through Financial Partners I think that's a policy question that's worth discussing so I'll table that but the rest I appreciate your hard work and sher's hard work on this so with that council member Mayfield followed by council member Mitchell and council member Anderson thank you madam chair and along the lines of chairwoman as mayor's question the caveat that I will add in addition to that is if we we have a partner that has building space from us that is at a dollar lease and they are then leasing out any space within that building for Revenue want to clarify what what ability do they have basically to sub lease and also if they're coming back asking us for additional funds but you have created generated a revenue Source through the initial contract which is that dollar lease we want to make sure for me I want to make sure that we're not creating two three four lines for one particular organizations when we have multiple needs out there thank you so it will be help helpful to get clarification around that Marie and T teen this is wonderful you answered you Incorporated what we have been sharing you've given us some really great information I just have and I think Mar you answered one of the questions I noted and that's back on SL five the proposed process enhancements assessment of applicants under organization is using a nationally recognized model SL datadriven approach I appreciate that because we know that Charlotte is the model for a lot of other cities so the data is going to be very important which my colleagues have brought out multiple times but I want to make sure that we definitely emphasize to the community that has an established positive relationship with the community and or a specific City Department because what we don't want to do is give the impression that you have to know somebody in order to move forward because we have some groups groups that have been doing amazing work on the ground that aren't necessarily on the radar of City staff yet because as Marie mentioned we've learned that some haven't known how to maneuver the process but they've been doing really great work so when we Market this that and or mhm for the community relationships I think will be a real opportunity for us and thank you for adding that the board of directors need to be diverse and directly linked to the community that they serve because that we've seen the impact when it's done right and we've seen where honestly we've had to go to some organizations and they had to refund the city because they weren't able to necessarily do what was intended so when we look at this next page the term limit on the funding thank you because y'all know that's something I've been asking for for years I just want clarification we're seeing this is the new language and the slide eight Marie cuz I see you're looking so right at the top I want to make sure for our current partners that have been there forever we're going to make sure that we market and reach out to them to let them know so we have to have and I Madam chair I think we need clarification we've had some partners for 10 15 20 years mhm are we saying that it is an additional y'all got 5 years to get it right but for new ones coming in we're trying to set you up for to be prepared for five years even though I said 5 to s for transparency because that's about how long it takes for organization to get to become closer to self-sufficiency I think that's a deeper conversation of how we approach that with those partners that have been on the books for many many years versus new partners that are coming in to make sure that we are transparent as possible to let them know you're winding down but as new ones come in here's the process we as we move forward and there's The Logical reason why we can't fund you forever we have a lot of priorities that are out there so that clarification I think will be very helpful with the marketing so how many years are you thinking so let's say if they have been funded for how many years oh we have that have been funded for many years that's why I want to make sure that so 5 years uh from 2025 or are you thinking because it will let's say if they're getting 100% or let's say over 50% of their funding from the city right now it will take them some time to roll up to to start now raising money so I guess what is the what is the time frame that you are thinking so I'm I appreciate this language and I do agree that you're fine since this is looking at fiscal year 202's budget we're giving everyone the opportunity to know for those current Partners as of now this is the new policy because that'll give you time hopefully to transition and or to merge yeah so they at additional 5 years right because we can't backtrack right yet for the new ones coming in we're giving them transparency on the front end of what the expectations are so thank you for that clarification Madam chair we have have on here that the payments may be delayed until all reporting requirements are met yes I like that yet still the devil's in the details as long as we're shooting out a notification that your deadline is coming up for you to submit your quarterly update so that we don't risk the chance of cuz a lot of our organizations are small so we don't want to penalize you for not having the information in on time if you're a small group and you're growing we want to make sure on our end we're doing everything possible and that is making sure that we have a mechanism set up to actually send out um reminder notification to say hey the deadline is coming up prior to payment here's what we need right cuz it might not be the exact same thing every quarter your current system might have some different metrics because I'm hoping and I believe believe that with all the work you all have done the goal is for these organizations to be successful but it's also for them to get to self- sustainability right thank you madam chair so just if I may um so muray correct me if I'm wrong but the reporting requirements would would that would be part of the agreement that will uh go in place between the organization and the city the actual contract and it is now but the change is we changed the language say that your payments may be delayed not cuz some of them are good about submitting them some are like okay you're still paying me you know so go we going eliminate that okay council member Mitchell thanks mad CH uh counc Mayfield I I want to Echo her comments thank you staff th this is excellent work that you have provided for us so let me start kind of the overall problem I've had been around here old as dirt is uh we got to get the community to understand our deadline and I think it's frustrating to a lot of us when for whatever reason some would miss it and so I want to make sure on the communication piece we doing all we can to communicate uh website Tick Tock whatever and then tell counsel could we do have relationships with some organization in the community who might call us and say councelor Mitchell when is the deadline so make sure we can communicate with all of us so we won't have this we get 20 in and then 10 come in um after the deadline uh so let me flip over I like all the new stuff I I think you address some of our frustrations let me go to page six and when it say enhance selection and funding staff I think it'll be helpful when you get that application make sure what priority box stay falling for city council we spend all that time in January talking about our priorities we get the applications in I think it'll be helpful if you all say hey this is Workforce Development this is housing and kind of be flexible because I would tell you this we seen a lot of application now dealing with our juvenile our climate has changed those weren the issues in January our juvenile crime but we see things are changing so I think there needs to be some flexibility to us if an application comes in don't me priority and may there's additional comment and we can say this is addressing our juvenile crime issue but on the front end let's make sure uh we check priority box and did the application me deadline I mean it irritates me when you do the piece you reach out and still on purpose and let me ask you this question sta do it have to be mail email or hand delivered do we give them all all the above fantastic not all any any above okay okay uh the other thing I want to bring I like the fact on page eight I'm Echo council member of Mayfield we start now in 2025 everybody's on the fiveyear time uh cycle I want to give my chair credit on the monitoring new when we saying under $100,000 provide a comparable financial statement because it was unfair to think they were going to spend a lot of money doing audit the other suggestion I want to add on page nine as we make Workforce Development a priority now I would like for Danielle to kind of add her language because there one thing people say we doing Workforce Development she's our staff expert is this really Workforce Development because I think part of our guidelines now we got a lot of applications in here and the three of us like Is that real Workforce Development and and so is is Miss Fraser here there she go there she go so if we can add on page nine we got Equity measure but I think we need to have some Workforce Development measure as well Madam chair I forgot so you I'm done thank you mam chair so may I um so Mari I know you had proposed um this on um page four yeah page five you had proposed a um a team of a team from different departments what page oh yeah P departmental team so can we make sure we have some representation from Workforce to Mr Mitchell's Point um because that will and also ensuring representation from other departments right whether it be housing Transportation or safety or environment or Workforce Development I guess just having the diverse uh cross departmental team would be important to Mr Mitchell's Point that's all I have so you know I know Daniel's getting pulled in all directions I don't want to say Daniel specifically but anyone from her or her team uh because I'm sure she has a lot in her plate um and I know council member mayfel had a question and that my apologies for forgetting this it was a two-part want to also make sure as we're talking about this this also includes our housing partners this includes this is any part any of our financial partners yes this is now the new rules now I know for our housing Partners is a different conversation regarding the fiveyear so there's some flexibility in that conversation but the reporting piece if we have a payout schedule making sure we're hitting our minority our mwsb goals if we have the workforce component make sure they're hitting their goals that's they are also included in this comp ation outside of the 5year limit thank you and we hadn't talked to Rebecca Hefner on all those cuz a lot of hers have Federal but we'll work on any of that don't have Federal Regulations already to work and that's and just for clarification because council member Mitchell thankfully actually reached out to congresswoman Adams office and what we clarified is that there are mwsb goals that we can set it is implied on the federal level automatically I don't think we all understood that and we on the same page so congresswoman Adam office clarified that if it's already implied but if it's not stated we have the ability locally to make sure that our mwsb goals are attached to those developments I did want to ask since we have Miss Fraser here as our work for as development lead thank you for joining us for our meeting as council member Mitchell mentioned we are asking the question of what is Workforce and with some of these applications if you don't mind if you can just give us the definition for your understanding leading Workforce Development so that we can have a better understanding when we're looking at these Partners now budget cycle and moving forward what we should be looking at for organization that says Workforce cuz personally to me if you're talking about operations cost that's not Workforce Development my idea of Workforce Development is different so I would really love to know from you what is the definition that you will be looking at thank you Council um member Mayfield for that question um so Workforce Development is anything that's related to the development the training the upskilling of individuals um but also what's helping our business Community to access qualified talent right so it's it's it's holistic and Workforce Development can take on many forms and Fashions right it could be anything from a high school student hearing someone from our organization or anyone else's organization about industry about awareness it could be an internship it also could be uh an individual going to training school to to get a credential or getting an associates degree Etc um it could be just upskilling so there's there's a quite a wide variety of what uh Workforce Development is but ultimately Workforce Development is the acquiring of skills retooling upskilling and ultimately to get a good job and a sustainable job um I will say that uh the financial partners a lot of it is operational and I did have an opportunity and thank you Terry and Marie for allowing me to be on the evaluation committee um over the last couple of months um and I I did notice that a lot of it was operational I will say from my my my previous life um operational costs are important to support the infrastructure but I also think the devil is in the details of what that actually looks like and what it's supporting what tangible outcomes and impact is it supporting so may you you but I don't thank you Cuz one a struggle we had we saw a require a request to hire staff to implement the program and that's was the confusion we had we we excited about connecting the jobs the resume helping with the the barriers to employment but you just articulate sometime it is hiring the white person so they a they can't Implement a a program so thank you welcome thank you m FR I know Council Anderson has been waiting for a while thank you I I'm sorry I didn't forget you but go ahead thank you madam chair uh I have two questions but before I ask my question uh Miss Mayfield brought up a a comment about the $1 lease for funded partners and I just want to make sure that um Marie if whomever is going to look into that you know we have some of our major um art institutions um bloomenthal performing arts for for for example has a dollar lease um uh agreement with us I want to make sure and they do lease out space in those buildings for revenue and so I just want to make sure that we're just double clicking on some of those existing partners that actually do have a dollar lease but also uh lease out their space and they've been doing that for for many many years so make sure we're not impacting overly their overall budget for their existing uh operations but Madam chair just for thank you for that addition mayor protim I think for clarification and so that is clear in the minutes it's more so so we have a financial obligation with a number uh facilities that we fund but what I'm also thinking about our financial partners that we've gone into agreements with that are also then submitting applications for additional funds to help with their programming got it so I think this is specific to the financial partners but uh council member Anderson good point because we want to make sure you know we are not we not talking about the facilities that we own that we are obligated to manage and maintain yep just wanted to make sure we didn't have any intended consequences around around that the my first question is around um on page eight where uh Marie you've said the uh the payment terms uh may be delayed until full reporting requirements are met and then um there's some mention of payment in the in the monitoring new section that payments may be delayed until progress towards perform performance deliverables is confirmed I just want to I think these are all good good um introductions into the process but some of these smaller businesses sometimes they don't spend their allocations on a quarterly basis they they might have a particular quarter where they have heavy capital outlay for them so I just want to make sure that if they're not hitting if some of them aren't hitting a particular threshold in q1 or Q2 that we allow them some space to articulate the fact that you know the majority of their spending is in Q3 or the majority of their spending is in a particular quarter because some depending on what um area they're in that might be um a particular barrier for them and then I just had a question about the I'm looking at this slide and there's various different numbers this is page one but it's just a one pager here in our packet on the applications for plant ad mittal for unfunded applicants it's in this packet but it's right behind the it's right behind the blue section so when we're looking at and this is for the the eight applicants that we received um so these these applications were received however there's varying stages of completion in in not in portions that are not submitted oh yeah that's in the attachment I think that's in the U it's in the packet that was sitting directly in front of me when I sat down so we'll find it it's if okay it's in your straw votes followup packet but it's part of the attachments okay I get the front of the attachments part of it well my my question about about this particular because we're talking about um funded partners and these were the applications received for FY 2025 right for unfunded applications and so although we received eight applications you know there's varying degrees of incompletion and um some haven't submitted any multiple uh tenets of the application at all would we still view this application as viable for funds allocation if if it was effective incomplete or um not submitted at all so moving forward no we wouldn't and usually in Cherry can speak any specifics but she follows up with them sometimes you know they turn it in late or she works with them to turn it in but she can tell you the status of any but it's like ongoing we try to tell them hey we're getting you present out to Council in a packet so make sure you get everything in yeah I just I I just think just as a as you all this committee is doing a great job and you guys have done a great job with the information that's in front of us I I just think as a part of being good stewards of of our uh Financial allocation if we have a an application that is more than 50% incomplete then I I think we need to think about the status of that application and the viability of those applicants to be able to get financial allocation certainly up to this this uh committee they're they're doing a wonderful job of that but I just wanted to um highlight that because I think there's diligence around if if we're going if we're talking about funded um Partners or Partners looking to be funded through this application process there's diligence around completing the application or making a good faith effort to complete the application at least 50% of the way yeah know Anderson thank you so much for bringing this up I think you're absolutely right there needs to be good faith effort and we need to do our due diligence to make sure they are submitting everything that they're supposed to um but before I have more feedback on this let me ask council member mayfel to go next thank you madam chair so for clarification so we're all on the same page we see that the yellow is incomplete what is the non applicable and the X what do those represent okay so not submitted that's a problem problem and the na meaning we didn't need that information from them they would have um goad um they would have submitted an overall agency budget but if they weren't looking to fund a specific program then the program budget wouldn't have been applicable thank you okay that's what we needed this is very helpful thank you council member Anderson for yeah Anderson read through the whole package thank you um council member Mayfield I mean M Mitchell Mitch so with this slide uh oh no no no go back go back where was I'm trying to yeah so we we need to keep this in front of us and so I'm about to make a motion because I know Madam chair we got another item yes on the agenda and So based on this and uh once again thank you mayor protim I I think for us we need to be fair yes um and and be able to justify our decisions right funding and not funding which one clarification I'm TR oh oh oh okay okay so you do you want to ask that I can once you ask that before I make my motion cuz I'm about to make a apologies just for transport for CLA Clarity so we have the request in here for Carolina's agent chamber do we fund currently any of the chambers and if not what precedent would we be setting cuz we have the African-American chamber the Hispanic chamber the lgbtqia plus chamber I am under the I have the understanding that we have not funded through City dollars any of the individual Chambers if we were to move forward with this what potential new president are we looking at so I'm not sure if I can speak to the president fully but we did fund funds them through arpa and I forget the name of what the arpa funding but it was the workforce Partners support program I believe funded all four yes so not through the um financial partners program no but through arpa funding yes yeah so not through fin so if we move forward with this cuz we still are talking about some potential Opa dollars out there and the interest for these the onetime cash request we've done one time to them previously specifically to the chamber I was under the impression when we approved that in last year's budget I believe it was last year's budget that the expectation is moving forward they will apply in the broader sense so that we don't set up this precedent of continuing to do this one-time funding like what should be the step if once you get onetime funding you should be directed to what funding line item moving forward just as an example so for Chambers for example yes yeah I'm not sure which one they could besides Financial Partners that they could be directed towards okay that's what I needed thank you know thank you mad uh council member Mel for clarifying that so I know we had we have had um Black Chamber Latin American Chamber LGBT other chamber lgbtq chamber they were all funded through arpa did they all uh get invited to uh apply for financial partners cuz I know block love was also funded through arpa and they didn't apply so no Hill Charlotte though was we considered it that was part of the not Hill Charlotte you're thinking I'm saying two different ones sorry Charlotte block loves was a financial partner it was arpa funded but we treated them like final so yes they definitely were now the chambers we and Cherry can speak more to it but we post it online I don't know if we reach out specifically to any of the chambers though um I did not reach out specifically individually to Chambers uh however I did reach out to all of a good portion of our city departments and say if you know an organization that would qualify for financial partners our application is open and please share that widely um so not just within the city but also our EX interal Partners like foundation for the Carolinas the United Way um even our existing Financial Partners I ask them to share it with friends so we do try to get the word out as broadly as possible but that doesn't guarantee that we get everyone chair just ask a point of because this is actually what I was thinking about so in uh in our packet page 11 in the blue the followup packet it has um the organ organizations 5 through yes uh 5 through 10 yes that it says specifically that they did not apply Financial Partners for 2025 but they were brought up as a part of our budget straw votes process so did block Love Actually apply for they did not okay I just wanted that as a point of a clarification and their hearts for indivual you know but I I appreciate Sherry your Outreach um suddenly we do everything to get the word out uh it's ultimately up to the organizations to apply but um so do we do we have a motion I'm going try to make one Madam chair can we go back to to that list to the other list because I think we need to use this for consistency yes as we go to council and then be able to tell the citizens in the community why we made our decisions yeah the one the May Pro to I think it is at the [Music] end oh the break down that we just had yeah you with the X there we go thank you staff so I ID like to make a motion committee that we fund the following at the dollar at at the dollar Mount um yes um well no you told me one of them don't do 100 just right because they only appli for right so uh Carolina Asian Chamber of Commerce for 100,000 uh fre o uh the boss University at 77,000 500 at 500 and uh let it be known those who we did not fund is because either your work was in you your work was incomplete or you did not submit and so I think we need to have some consistency and be able to explain uh why did we support not the only one that there's a exception is WTVY Community broadcast we didn't see a Workforce Development component in their write up and so Danielle that's what we was asking you to help us kind of you know what do we need to look for and so Madam chair just reiterate Carolina Asian Chamber of Commerce $100,000 and boss University 77 ,500 is my motion do we have a second second oh all in favor raise your hand okay so we have that unanimous by the Committee Member by committee so second item we have here is the additional funding for nonprofit can we just pull that up here the list that uh that was from our budget discussion oh here it is yeah I I got this right here okay so these are the organizations that did not apply to be a financial partner with the city however the they were all brought up during the budget process um any discussion on this committee members council member mayel you're recognized thank you madam chair so if we stick to our policy and if we stick to the communications although including one that I put on here although we added potentially additional funders on there we have the information that shows that these Partners did not apply that's correct so in the for the sake of the fact that we are really working hard to keep whatever tax increase as low as possible and even though we're talking about potentially one time we have a limited amount in those oper dollars and we have a lot of requests out there in those offer dollars Madam chair I would like for as a committee for us to consider not moving forward with the ones that did not apply at this time just for the sake of consistency give them the opportunity as we move forward for them to apply for future dollars once we get through this budget cycle of which Marie correct me if I'm wrong you have opportunities throughout the year to uh I think we have another time later in fiscal that'll be in fiscal year 2025 where you can apply for dollars for your funding this does not have to be right now there's different opportunities but for the financial part we'll open it up again with this criteria but if they get that they wouldn't get funded to a year from July but yes so I think I just want to clarify because council member mayel you are correct there are opportunities yes for financial partner this is it but then there are opportunities for an example we had allocated couple of million dollars towards addressing youth violence so for an example save our children's movement they specifically work with uh youth so they would be able to apply for funding and not just 34 they might possibly apply for much larger funds to your point but yeah there are opportunities like that even through our um um um um the youth uh what is the specific line item called that we approved Victoria made that motion right for Alternatives the violence no we have no juven Juvenile Justice so like Carolina youth Coalition um save our children's movement so many other organization even block love because they actually help uh children that are homeless right I mean I say all most of these organizations could potentially apply for that pool of funding and that's what I wanted to clarify because these organizations do great work yes and I don't want this to be perceived as the only opportunity yet if we're going to try to stay consistent to our rules and language and as we're trying to clarify language if they did not apply then for right now I think it is fine for us as a community as a committee to move forward and not recommend funding at this time because there are other opportunities for them to receive funding cuz we have a lot of requests out there now it I think for me it would be a different conversation if they had applied than they would have been in that other bucket but because they did not apply at this time they might be in a position where they're okay for right now and then there will be other opportunities for them to come to the table yes ma'am and council member Mitchell followed by council member Anderson so just a followup because I think Council May touched on the OPA fund Sean do we how much do remain in and our Opa fund interest so the AR the arpa interest is $6.9 million do and that that's prior to any decisions that were made by Council last Thursday so that's prior to but but Council stay with me for a minut I know Charlotte black Film Festival we voted to take out an ARA funding 287,000 and I think we earmark for the teachers Village a million dollars out of the uh Opera fund was there anything else5 a million Foundation a million and then a million for the faith and housing so so that's what I'm trying to say so we have already stopped us about four right so how much we did for the faith summit 1 million cuz we already had 1.5 so that was to get it to 2.5 and then how much for the the Kate blessing well I think we can put that to the side because that was assumed to come through the manager's pgo recommendation okay got it got it okay but council member watlington did advocate for an additional $1 million in the oper interest to add to the manager's pgo recommendation of 3.5 million so we got 1 million faith summit 1 million for juvenile 287,000 for Charlotte blackfilm a million dollar for the teacher Village did I cover everything for the Opera funding that we voted on last week yes Ryan can weigh in here he's got the specifics oh boy y' they own it oh okay than thank you Ryan Ryan here we go Ryan got it okay you guys want to be in this meeting um okay so perfect perfect right so so what I have from the the Thursday meeting is the things that that would either be approved or go forward to committee with like a possible earmark from arpa was a million for the uh teacher Village concept that was talked about 700,000 for the Workforce Development Financial Partners which were just talked about and it looks like you would only use about 177,000 of it uh 534,906 450 for cmpd equipment which was like the ballistic Shields and the active um shooter kits there was 250,000 for the additional litter cleanup crew from the center for employment opportunities 287,000 for the Charlotte black Film Festival 100,000 for boom Charlotte the 1 million for Faith and housing the 1 million for the additional Juvenile Justice support so everything that I said adds up to 5.1 million out of that 6.9 million arpa interest but a couple caveats to that uh one it doesn't look like you're going to move forward with the whole 700,000 for Workforce Development and potentially not this amount so that may be added back in and then there was also potentially some opportunities um uh talking to Danielle about some of the regular arpa Workforce funds that she has may be utilized for um a couple of the workforce related needs Madam chair Mr M can I just ask a point of clarification on what you just said right you mentioned the 250k for litter cleanup yeah was that not out of uh Workforce allocation I thought I thought we voted that out of Workforce but I could have gotten that wrong yeah so we said arpa and we said we would look for opportunities to use regular arpa with the additional uh 2.8 million that Danielle had as opposed to arpa interest wherever possible so that's one of the opportunities and that would be a very good fit for it May thank you madam chair Mr Bergman thank you for actually breaking down and presenting us so in actuality because for transparency we wanted to keep the conversation clear for the organizations that did not apply we actually a number of us of which you see the breakdown of all of us that put our hands up for additional funding thank you for reminding that this 534,906 50 out of the 7 million which leaves us like a little more than a million dollars MH what 1.8 1.8 million for potential additional ask thank you very much so Madam chair I did not make a motion I was having the discussion but for today since we have identified it I am comfortable for us to for me to move for a motion but I do want to give time for Council Brown that joined us to speak before I make a motion or do you want me to make the motion a second and have her speak so I I move for us to approve all of the additional funding of nonprofit organizations that includes block love are we and we're doing these total amounts or with these up to the 100,000 up to 100 for 100,000 for black love for Carolina youth Coalition Charlotte Museum of History we're going to let this one we going have to have different conversation about how we fund the museum moving forward hearts for the invisible home again foundation and these are one-time funds and for save our children's movement they specifically only ask for 34,000 so to approve the full $334,000 ass second okay council member Brown all right y'all don't be scaring me when I walk through the door now okay taking care of because when we in community and we tell them we're going to do something I really would like for us to be able to move forward and do that and I understand that they can apply for additional funding so I'm coming in at at the tail end and that's perfect so I'm okay with that you got a second you got a third right here for me so we I I'm okay so right there I think that's 3 four 5 600,000 uh I'm sorry 534 534 so you so all in favor please raise your hands I think you have it unanimous so this is but one clarification Brian on the Workforce Development Financial Partners we actually gave you some money back so we only did one 77 instead of 700,000 okay and um yeah so we should have additional funds left on in our go back to that 1.8 give us a little bit more that be a future Council action yes to potentially have additional funding for Juvenile Justice initiatives um okay so to be clear be you great the 725 comma 333 we reduced it to zero no that that's Workforce Development these are only we discuss nonprofit I'm looking at workfor oh no we only discussed this this on what was the motion um it did because they didn't complete yes if we can go back to that slide Marie a couple of our partners did not provide all of the information that we needed so it was uh say they didn't provide the budget the program budget or the revenues all right no problem unfortunately and so what so can we just go down the list I know I'm late but I want to know okay so be you great nothing right now because they're incomplete right will they have the opportunity to come back and yeah submit okay I just want to be clear for the record Carolina's Asian they're good they're getting 100,000 okay this is all still to 100,000 like we discussed the okay how would they go back and get the other money are they applying for it or what are we doing I'm just asking for how about how about you and I connect afterwards because we do have another item that but this won't take long and I want to know what is the question I'm asking about the ones that we're going down the Workforce Development so out of that can you just repeat uh what organizations council member Mitchell that I'm just talking about Workforce Development I'm clear on additional funding so he's I'm asking him to tell you his motion so that you know which organizations were included we only approved three okay you only approv two I we only approved two uh councilman Brown we approved Carolina agent Chamber of Commerce for $100,000 and we approve how you it stileto boss University for $77,500 we use this this is I got in principle so if they had an incomplete not submitted we did not fund them so I'm looking at freedom fighting missionaries which is really dear to the community and the work that they're doing why do they have three AES did they not they not sub inform they didn't submit the information okay I'm going to reach out to them and see what's up with that okay yeah right so that's what I wanted to know because there's a there's not submitted then there incomplete right so the the the yellow triangle is incomplete correct correct the X is not submitted correct submit all right Mr Kenny Robertson don't be calling us out got completes up here I love you but I need you to do your work do your checks and balances okay I'll call you thank you council member Tiana BR she says it like it is I I love that so well next I know that the topic that you are alling on and this is something that I know that council member Mitchell mayi and even council member Brown we all have been passionate about this topic which is our CBI policy uh so I would like to turn over I would like to turn the presentation over to Steven Cocker and Phil rigger to walk us through our procurement policy think for me Phil did you give us a PowerPoint that you're about to show us we we do um going to pass one out thank you just CL clarifying and uh Madam chair members of the committee thank you for having us um Steve and I are really excited about um being here Steve's going to kick us off and uh and then I'm going to chime in we're going to kind of do a little bit of back and forth okay and um looking forward to sharing with you some new ideas so Steve all right well committee leadership uh mayor protim uh City leadership and staff uh it's good to be here before you uh my mother used to talk about it takes two to tangle and and and of course Phil and I have been going through this dance uh effectively and uh what we're going to present to you uh really speaks to the idea of mwsb uh participation uh over the last few months several things uh things have uh themes have emerged and we've had these discussions uh as it relates to increased utilization and spend uh naturally as we prioritize mwbe uh program uh as well as uh increasing spend we have to work together connect up dots be fully transparent in everything that we do and we've talked about that uh the barriers that exist for our constituent businesses uh We've uh worked on several things as you know including our contractor development program we've partnered uh in in a meaningful way with the Charlotte business growth fund to support Capital Access and of course the legal uh resource program uh growing capacity is is incredibly important to us uh when we talk about uh many firms have gotten zero contracts and the ones that get one that really doesn't uh support growing capacity so uh the things that uh Phil and I have talked about are really going to connect the dots and then of course uh what we've talked about so often is not just exists in the subcontracting realm but with to help these firms grow into Prime contractors and that's uh absolutely important and of course uh council member Mitchell and mayfil these uh last two will resonate with you alternative constructions and I think Phil has done a bang up job as far as uh supporting projects uh that could take on uh alternative methods such as Uh Sears uh and Etc and then uh unbundling scopes of work we know firms can't do the full pie they can't uh bang out a Million Dollar Plus projects but if we take a concerted effort to break up packages we believe uh we can get a lot more participation so in opening up I just wanted to put those things out and then I'll turn it over to you Phil great uh yes let me see if I can did I get it yes all right I'm going to all right so um one thing that's not on this list that we heard from Council when this item was referred is that you wanted to see a plan oh and so um today we wanted to put forth a a plan for developing plan um we recognize that uh being this June 3D and the next time this committee will meet is likely September we're probably not going to get that plan developed in one committee meeting right uh today but we wanted to put forward in front of you sort of a path forward for putting together what we're calling a CIP uh mwsb utilization master plan and I'll talk a little bit more about what that is um but effectively it's a written plan um that will Define sort of the objectives the actions and the measures for how we're going to use the CIP to offer more uh opport Unity participation and utilization I wanted to give the committee a quick update on what we've been doing since December so that we don't get lost that things are already in motion um and then um recognizing that the next time the committee will meet is September I don't want to leave the committee with the impression that we're not going to take action this summer right and so I wanted to put forward uh in front of the committee for a discussion a pilot framework and this is really a framework about how we think differently about how we procure our Construction Services uh as well as a a a way of thinking differently about how to engage um our nwsb a lot earlier to get them prepared for opportunities and then finally um as as you're all aware our CIP is a pipeline and so projects are always moving through the pipeline they're in different phases um and so I wanted to give this committee a quick picture of the things that are sort of moving through the pipeline that the council would likely see over the next six months um so so what's a what's the utilization master plan we went out and we took a quick look at our peer cities um and we started to ask the question what are our peer cities doing uh as it relates to a a a plan that sits on the policies uh that really speak to the nuts and bolts of how this works and we um we found lots of different plans but they were all pretty different uh and the best model that we found was Denver's plan and so so what you see in front of you Colorado say again Denver Colorado Denver Colorado yes okay um so you all recall at your retreat you uh saw Adam fips and Adam from Denver and Adam sort of turned us towards hey here's what Denver uh is doing and and they they have a plan that it's really a guiding document identifies the strategies and Pathways to achieve our our policy goal to grow and and develop our mwsb through the capital program and and and when I show you a this framework I think you're going to see how we have split the work up that's going to allow our our small businesses is uh opportunities to grow through the different levels of complexity of projects that we have as a city so this plan really will probably Define let's say four to six major objectives under those objectives we'll have two three specific actions that are going to get us to achieving those objectives and then they're going to be measurable so we'll be able to bring back to council how are we doing um one uh model one uh comparison to to this plan might might be the ca so the the Strategic energy action plan has objectives very measurable Sarah comes back and talks about them but it stands on the foundation of the council's resolution which is is policy um so that's what a master plan is that's what we want to uh bring this committee along and get your help developing this plan and in the next slide Steve the schedule we've laid out is a three meeting schedule um in September we want to come back we just want to talk to you about the policy framework there was a whole lot of questions about do we have a procurement policy what is it um how does it work and the answer is yes we do um and so we want to we want to share that with you um we want to bring back and talk about about how your CBI policy overlays on that procurement policy and um and then Steve's going to also uh provide some more information about how goals are set um and the factors that shape those goals that end up in utilization okay on the seventh we want to talk a little bit more about project delivery methods and the benefits of those different methods um at that point we want to put put in front of you a draft plan and so we'll have taken the feedback that you've given given to us today in September and we're going to bring back uh a draft plan that has the objectives actions and metrics um and that'll be uh an opportunity then for you to really pour into it and give us some more feedback and then in November if if uh it's possible we're going to bring back that final draft of a master plan and if um if the committee feels good about it maybe you need to tweak a few things there today uh but maybe we can get uh a committee recommendation back for Council uh for a master plan council member Mitchell you have a question okay just you know Madame chair just a brief state I'm going Echo the sentiments of uh council member Brown so staff uh when you look at our demographics they don't look like Denver Colorado right so I just want to make sure if there's a best practice we can find it mirrors more our demographics Okay so so we got two months we off July and August so if you can you know best practice find some almost like Charlotte I think it just gets us more comfortable as we have this conversation I totally agree with you council member Brown yeah we'd be glad to bring back some of the examples that we're that we're looking at again we're not looking to copy anybody's plan we're looking at just you know what are the what are the model how's it set up what's it trying to accomplish so we'll bring you back we creating a model we are creating a model model that other cities will follow like we did with C so that's what I'm thinking we will create our own model of course when we're looking for Innovative and best practices the whe has already been invented on everything you know if you're looking to do something someone has already done what you're doing or otherwise we wouldn't be sitting in this room like we'd be unique individually making a lot of money billionaire status right but what I was thinking of when I thought about Denver was just like some data or some work that I've been doing that doesn't match what we're doing here in Charlotte North Carolina I like that you're looking at the base the structure to start there and then we can move forward with creating something that is really unique for Charlotte cuz Charlotte is really like a special and unique City and a lot of people moving here hence why we have 100 and something people moving here per day we might be at 200 now right I don't know what that anybody know that number still in 100 and something 100 yes ma'am that's a lot of people moving here daily um so I would like to see what you guys come up with cuz I met with you one onone you have an amazing team you work really hard and I'm looking forward to seeing what your expertise would put together and how we can just work together to blend it but I think that Denver that kind I said Denver Colorado that's why I said it like that but if you're taking the base structure and we're going to implement what we can do here in Charlotte and make it unique where everybody want to copy us and we'll be the copy cast that's right this is this is this is a uniquely Charlotte's plan um this is what I would call an emerging breast practice um you don't find a lot of comprehensive plans like what we're talking about um you you find different Snippets um that you kind of can put things together we used Denver for two reasons one Denver uh and what they're TR what they have been able to accomplish through their Capital program as it relates to funding Transportation infrastructure is similar to what we're trying to accomplish and two as it relates to comprehensiveness it was uh sort of had all the elements but to your point m brown absolutely need do sharp so Mr Heath thank you for keeping me straight here uh he asked me to make sure we do a time check uh we have a our meeting ends at 3:30 um so are can you all stay 10 minutes past 3:30 what do we have like a 30 minute break till we go to that 4:00 right yeah but the thing is they they require time to set up the room for next one okay so they would probably want this room vacant by 3:45 the latest so I just want to give them a grace period so by 3:35 can you all stay by 3 up to 3:40 can you all stay that's fine yes okay a pizza just kidding just kidding so Mr rer would it help if you just go through the whole presentation and then we hold our questions till the end okay we'll move swiftly no no take your time time I just want to make sure we give you ample opportunity to do your uh to do your spill um so again what have we done since December you all recall in December we were having conversations around the Northwest police station um that particular uh police station uh the bids came back uh did not meet our CBI goals did not meet good faith efforts rejected all bids um it was through those conversations that we um instituted or had a business connections meeting uh M Mr Mitchell uh helped kick us off there um and um many others were there this was a great networking opportunity where we brought primes and Subs together um and uh we really think that that that has paid dividends and will pay additional dividends and we're going to continue that model um and then you can see the list of projects where we've shifted away from our traditional design bus build process which um results in a hard bid and and we've moved those projects either construction manager at risk or in some cases a design build methodology uh was a better alternative delivery fit um for various reasons so here is the growth frame or the um the framework the the the different way of thinking about how we procure construction um and I call this the road to growth because as we move from left to right you're going to have um projects that are increasing in in cost or estimated cost but also in complexity and so this gives uh I we talk a lot about just the right size contract well depending on what contractor you are just the right size might be really small or might be uh larger and so uh starting from left to right uh for for those projects that are valued at $300,000 or less we want to Target mwsb so we're uh North Carolina state law allows us to do informal solicitation uh which allows us then to target a market uh and our policy framework uh already speaks to this and allows this and so we want to Target mwsb a target market means at least three there has to be three certified mwsb state law requires when we do informal bid that we have to solicit three first so if there are three mwsb we target that market um and uh so 300,000 and left no bid bond is required uh the administrative burden to do that work is relatively low and these are projects that are most likely single scope projects where a contractor is going to self-perform and so we feel like this is a this is this is your smallest contractors that are really really good at what they do and um and this is a good place for them to really take on that Prime role and begin to learn what that means so as we move to the right the $300 to $500,000 again um anything under 500,000 uh we can uh informally solicit which means we can do a target market however projects over 300 require a performance bond and so um that adds a level of complexity um and so because there's a performance bond required Steve's got a really great bonding program that's available um along with uh access to Capital and some some of those things so those Services really become available they're really available to all of our nwsb regardless of where they are on the Spectrum but here it becomes really relevant because now you've got to have a bond you have to have bonding capacity um we're we're here we're setting utilization goals because this work may require subcontracting um and then um and and so again moderate amount of administrative uh workload here uh a little bit more advanced project um some again a level that a smaller contractor has an opportunity to grow into when we hit the 500,000 to 5 million now you're starting to talk about formal bidding um and this these are jobs that uh probably aren't big enough uh in complexity for alternative delivery methods that's not to say we couldn't do alternative delivery and we might choose to every so often if it makes really good sense um but here's where your general contracting Community uh is uh these are these are your general contractors that have not yet stepped into alternative delivery yet in other words they haven't developed that skill set um but they want to be primes too and so again a a third third opportunity for growth um bonding uh access to Capital is available this is sort of your full administrative burden on the prime prime is not only keeping track of themselves they're keeping track of their subs and their they're sending pay applications to the city it's just a lot more administrative work that comes with managing a contract like this and then finally the 5 million and up this is where uh we're evaluating alternative delivery um this is uh where you've got uh complex projects that might have complex schedules um it's where alternative delivery methods really shine and um full subcontracting uh opportunity CBI is helping us with goal setting um this is where your large road projects are it's where your where your um police stations your fire stations those types of projects are at the bottom of the slide from left to right we've given you a sense of how many projects are in each of these categories and the approximate value and this is construction value yes uh there so you can see that you know we've got a whole lot of projects that are under $300,000 um which is a really great great opportunity for folks um and and this is a moving Target because remember the CIP is a pipeline projects are coming in and rolling out all the time and as Council adopts a uh new CIP in in fy2 there going to be more projects that are moving uh at the through the beginnings of the pipeline so these numbers can go up or down they will they will move they will move up they will just move well they'll move up and down as projects are started and completed right uh so this is a new framework we're proposing that we pilot this yes starting tomor um and we have some projects that are going to be uh ready to go between June and September and so we think there's an opportunity to to see how this works and bring some of that data back to the committee and share with that in our September St tomorrow y'all don't play no games looking forward to getting after the presentation more getting some more feedback about the framework uh so we're pretty excited about this now I'm going to turn it back over to Steve all right uh when going through this uh thing I said to Phil and I'll will say this to the other uh directors as well CBI has to get involved early we can't wait till we get to you guys can't wait till we simply set a goal we have to shape the project at the earliest stages and and Phil bought into it and so with this plan that will be the objective of course the details will be rolled out but just basically early collaboration between CBI and uh General Services is important that's going to take place of course we're going to emphasize uh the engagement uh meaning we're going to outreach we're to uh talk to our certified firms uh and that's an important part of this plan uh and then in terms of the opportunities we're going to spell out all the details you've heard me talk about scopes of work and all of those different types of things well there's going to be a major focus on that and communicating that to our mwsb and of course uh our commitment I think our commitment has been strong uh since I've been here uh but as Brent Kagel says uh we want to make sure the audio matches the video and so that's going to be absolutely critical to the plan that we develop all right so just thinking about pilot projects um we wanted to give you a sense of what they look like uh there's eight of them so think about eight projects that are are sort of at that 100% design phase uh and ready to flow we've got six projects that are uh sort of in that flat work sidewalk shared youth path category you can see the the range of the cost estimates for those projects and then we wanted to test a few traffic control device projects uh this is a very this is a a a set of projects that we do a lot of so think about your um Vision zero types of projects um really important to the community around safety and transportation they tend to be uh High technical but we wanted to test the market and see what we have here and remember if we don't have a market that's that that doesn't mean we stop it means that uh we share and work with Steve to try to figure out how we start to develop that market over time and then just uh some of those upcoming projects that you'll see uh over the next uh few six months or so for a ward you can see a list there of those that are in the 500 to 5 million range so this is this would be generally open to our um General Contracting Community um and then we have uh some projects here that are already at 100% design these are uh horizontal road projects that we need to go out and test the market these particular projects are uh you will remember your blue and yellow pages when we go through these are at budget risk I miss those so there's a a report um at a budget Workshop time where we report out you remember these are these are on these are in yellow and so we need to test the market to see if we could get these projects done in budget and so they're ready to go to the market um if they if we can't get favorable uh pricing then we've got to we've got to take a step back and and look at the project as it's currently designed and potentially do something different different different so again um for today um we we've proposed um this idea of a master plan um and in a a CIP pilot framework um and so we're recommending that we uh proceed with that and then um looking forward to continued committee discussions as we build this master plan together um and and again this is a repeat from that previous slide and so with that we uh turn it back over to you madam chair and ask any questions you might have thank you so much Mr rer I certainly appreciate this schedule and um most importantly I like that it's a pilot program that it's it starts tomorrow right uh to Mr to council member Brown's Point you're not playing uh because even though Council will take a summer break you are all still working so I appreciate that you know at the end of the day what truly matters to me is that we remove barriers for mwsb mwsb to bid on City contract tracks um so I think this helps us achieve that objective so with that uh council member Mitchell Mayfield and brown and and and and Madam chair I'm going be very disres respectful we leave at 340 345 340 oh 3 I'm going do this real quick uh to Jennifer cathine um Steven Phil Sean and Renee and Mike and Mike uh my excitement please take it the way I try to receive it I try to deliver it I should say and so I know I've had some tense conversation with some of you all over the over the months but I just believe that this program we should lead this program effort so let me apologize for you all in front publicly and I thank you for what you all do um so let me kind of quickly go through if I can I'm going start off what I call the U Mayfield Amendment and so Steve it would be nice in the next two months we can show how many of our CBI firms have actually been awarded work it's a big disconnect that some people have been registered for five or six years they still haven't received work so uh can you give us that data by time we have our September uh meeting uh on uh on another area is if we could talk about barriers I think we got to look in this area of safety currently right now we look at EMR as a way to determine a safety go I think we need to explore using Dart Dart is a more realtime way of looking at someone's safety schedule so we can just explore that can you tell us the difference we don't know yeah okay for those who are not in not I'm sorry okay so so the EMR it is EMR d a ways to judge someone's safety record when they General contracts to build EMR kind of B it looks like you're to in man hours and so it's it's it's not it's not uh what I say fair for small company and big company to be on the same scale yes I'm going to say Dart has a uh a better way of saying how many safety issues have anyone had based on how many man hours so it's more of a real time that insurance companies look at so we can switch explore switching to Dart rather EMR I think we have a a l what's the acronyms of EMR I'm sorry uh you remember Emergency Management response there you go see we got the brains in here I just know it's EMR say it again Kathleen experience modification R okay experience mod so I'm going be very compensation type stuff uh let me be quick Y'all Gonna fuss at me uh we've already having a conversation about quick pay I think quick pay is a barrier for some of my trade Partners quick pay is not 30 and 45 days the industry is going a quick pay is 15 days and that allows small businesses to protect their cash flow and do more work uh staff thank you on the delivery Al to the methods we talk about More Design bid build and see them at risk um here's one thing out men Council mayy have been doing this for so many years but on the bundling I think it would be great that when we have our RCA that we actually list those big packages that we have unbundled to get more opportunity for small businesses and I know right now we have uh struggling to unbundle our project so councilman Brown here a prim example it might be uh a million dollar drywall package we don't have any minority companies that can Bond a million we do have those maybe could do $300,000 so can we break the package down right so that's that's a convers unbundle and then to show us council members on our RCA which package unbundled that generate more uh participation my my last one I want other colleagues to talk County Commissioners have they process they allow County Commission sit on their interview and panel have we ever considered thatat so County Commissioners actually sit on the interview for construction project devel for their Economic Development County Commissioners so they rotate them and so it's a model that I don't think we have ever looked at so if we can get some feedback how would that look for us for all capital projects for all capital projects um the County Commissioners so they rotate sometime Miss leak would sit on them Cash Direct what's that process look like we don't have that they don't that's why they're asking them to explore that option yeah okay uh I'm going shut up because I want to be fair toor you did great you're in the industry clearly you have a knowledge so you able go this isn't educational experience for most of us that are not in the industry doing together for quite some time so so we're over on time Madam chair so for M next yeah well just for three minutes go ahead I'm fine the I just want to clarify we broke down some items that some potential projects that may or may not be find it I wanted to keep in mind we broke ground today for council member Brown gave welcome for fire station 30 which is swon is leading it right I think if we saying we starting tomorrow we can start even with our current projects that are out there verifying y that our partners are actually being utilized and seeing how we can strengthen those starting right now versus looking at projects that may or may not be funded we have some that are funded where they had some commitments let's verify that actually utilizing those companies that we identified going back to what council member Mitchell mentioned that we have some that and I've mentioned on General Services we identified these people but they haven't actually been triggered to do a project we got some ongoing projects right now that we might be able to tap into thank you we requested that report I think it was last week and CBI is working on it anything else committee members do you have any input in the process they they're the experts they've done well I've learned a lot in the process but I do when you said tomorrow I did want I know that it's going to be difficult to go through the list that we have but to council member Mayfield's point I was going to ask is it possible for those that are existing to add to the list so or is it something that they've already got it on lockdown and no there I think there's two things and so guys help help me if I'm not interp is right there is what we already are the construction that's already going on and so there's this question about are the firms that were identified in those contracts really being used so that's one thing um so so we can go back and look that look at that that Steve's help no no doubt about that and then the second though is the projects that have not been uh been through a procurement process those are the projects that I say sort of uh start tomorrow right we're going to start to apply this framework moving forward okay and uh we'll collect some data and we'll see how it works where it doesn't work well and we'll bring all that information back thank you I know we're at 40 but just 30 seconds real quick so and when people want to do work and they're sitting on the list for years is there a process that we can come up with just to stay in contact with them to let them know we know you still here are you still interested do you still have your credentials because that could eliminate that list maybe they don't have the credentials that they once had to be on that list is there some process where we can stay in contact to make sure we have frequent engagement with them we send out surveys we have uh other things other than contracts that we want to communicate as resources so uh we invite them all to uh many times sit down with us individually especially uh if they want to provide updates so yes okay that's what I want to know because then 5 6 years is too long for anybody not to be able to feed family or put their employees to work postco taking that out of the picture but thank you guys for all that you do I sat down with you and I said better you to me so but thank you for all that you do okay I think with that I think uh great work staff I appreciate appreciate you thank you and thank you Sher and Marie for the financial partners thank you for building me out thank you so much M to a j Madam chair SEC second second all in favor I all right as have oppos be it may great [Music] he [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] you [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] [Music] sh he [Music] [Music] [Music] [Music] better care we're we're live good afternoon welcome to the housing safety and Community committee meeting here I am Victoria watlington your chair and representative at large uh we've got a good bit of things to cover here today um so we will get right started with our introductions um I will start um in the room where you want to start at Madam CH did you want to start with committee or you want to start with staff yes please we can start with committee Vice chair Mayfield you can go first and then we'll go to your left and then Circle all around thank you madam chair Lana Mayfield Vice chair council member at large dle Committee Member and at large Rene asku assistant city manager Rebecca Hefner housing and Neighborhood Services Warren Wooten housing and Neighborhood Services r with Stewart housing and Neighborhood Services Judy S Cohen um the advocate for the people's budget Renee Johnson Committee Member District Four representative councilwoman Tiana Brown Charlotte City Council District 3 Committee Member Dante Anderson mayor protim district one Janine Simmons Housing Services Herold Thompson housing and Neighborhood Services WIC housing and Neighborhood Services Sean Heath City manager's office thank you so much um like I said we've got a packed agenda so we will go ahead and get started I will turn it over to ACM ask you to uh T us up good afternoon uh we do have a packed agenda we have some great items to discuss starting with affordable housing um fund uh Housing Trust Fund recommendations which I think is really exciting to see and then we have a second item associated with uh teacher Supportive Housing uh with that our return over to director Hefner thank you good afternoon everyone I think when it comes to the Housing Trust Fund it may be fair to say this is the moment you've all been waiting for So today we're going to start talking about not just how do we do more with your housing trust fund but how do we do different how do we innovate and how do we get better resident outcomes through your Investments next slide please your packet includes what is at this point probably two meetings worth of information so I don't think we will actually get through this full discussion today um but this is this is what we have for you and we'll move as quickly as we can so we'll talk about the referral summary a little bit about your current housing investment an overview of the the housing bonds and what is El what are some eligible uses of those housing bonds we'll discuss housing investment goals by type and category and uh then if there is additional time we will move into priorities and prioritization uh and and if not we will save that part of the conversation for your next meeting next slide please so the mayor referred this policy question to housing safety and community committee are there opportunities to balance multiple priorities surrounding the city's affordable housing activities and Investments to more strategically align Community needs to available City resources yes absolutely lots of opportunities and so we're going to provide a lot of information for your consideration uh today the information that we've pulled together does include in so we've incorpor ated best practices U from other uh communities across the various housing types and activities we have not done a specific stakeholder process related to this particular referral at this time however the information does incorporate a lot of stakeholder feedback that uh we have received as staff and you have received as Council uh we we have Incorporated a lot of options around Innovation and public private partnership models and our goal will be to help you develop recommendations for consideration by full City Council next slide please so when we think about affordable housing the traditional Focus over the early years of the Housing Trust Fund was on housing unit production uh you this this is not the current data this is a snip from your 20th anniversary Housing Trust Fund report uh and the focus has historically been on the number of units created at which which is an important Focus uh through the Housing Trust Fund I think we are up to over 12,000 units uh that you have created or preserved uh through that funding source uh over over the years but we've heard you loud and clear you want to do more but you don't want to do more of the same so the housing unit that's not enough uh we want we want to help you get to a place where we're leveraging that housing investment to improve resident outcomes and a real holistic focus on those outcomes you may recall we had a brief conversation at the strategy session in January about what we refer to as the housing and model an investment in housing uh is is an investment in people and uh we uh strive to pair those housing investments with other Investments around economic mobility and residential stability to get the best outcomes for residents so we want residents to have access to Safe quality affordable housing and supports to help them maintain stability uh we want residents of all incomes to have access to thriving neighborhoods so all neighborhoods have affordability within them and and economic Mobility we want residents to have access to services that increase employment income and wealth and reduce barriers to housing stability next slide please affordable housing is for everyone if you've heard uh Council Mayfield member Mayfield Spiel recently who needs affordable housing we all need affordable housing the definition of affordable changes from um household to household so the city uses the definitions of affordability from the US Department of Housing and Urban Development that says housing is considered affordable when a household spends no more than 30% of their income to live there so in meinberg County 50% of resident of of uh renters and 19% of homeowners um are considered housing cost burdened meaning they are not living in a housing that is Affordable at that level um and affordability one one more note on the definition here affordability for low and moderate income households is actually calculated as a percentage of the area median income and it's determined by household size so in 2024 um the median income for a family of four in Charlotte mecklinburg is about $106,000 up just a little bit from last year um but still close enough to 100 to make the calculations relatively simple so 30% area median income and Below you're looking at a little over 31 ,000 um for a for a household of four um for for um and and at 80 80% Ami is about 84,000 for a household of four so you can see on this slide what some of the uh salaries are for the people who live and work in our community um and and help us every day um we've also included a reminder that that affordable housing is also for um our residents who are on fixed incomes uh a lot of our seniors um veterans um are our disabled neighbors uh who who may be on um fixed incomes and need uh housing support next slide please I'm going to repeat two slides that you've seen recently uh when when you did your uh recent Housing Trust Fund approvals and these slides show what um you have invested in the number of housing units um since January 2023 so in the in the last Bond cycle um but across all funding sources so these numbers actually include your housing trust fund but also Innovative housing uh local pgo dollars um to Transit oriented development fee and L Revenue you had your first one of those recently uh and then a variety of federal allocations um uh fund housing units done with cdbg or home funds for example it doesn't include uh the house housing funds that support households directly um like the emergency Solutions Grant and some of the um hwa funding so you have other funding sources that do other things but when it comes to affordable housing units you have invested in over 2,200 units since January of 2023 and we're going to look at these various categories in more detail as part of the presentation today um but when you start to think about investment goals across housing types and across housing categories um this is this is kind of your Baseline this is where you stand with investments from this last Bond cycle so looking at all the way from you know 58% of the total investment went to a multif family new construction um down to um 4% of uh went to Supportive Housing next slide this is that same breakdown but by Ami so across all the funding sources in the same time period 40% of the affordable housing units approved or preserved um were are are deed restrictive for households at 50% and Below Ami um and 24% at 30% at Ami um and below so you you are um doing U meet meeting your goals uh with some of the most vulnerable households you'll note that there is a 90 to 100% on this slide um because it includes um local dollars that support your house Charlotte program and uh how Charlotte uh is eligibility goes all the way up to 11% Ami get my expert uh confirmation next door here all right next slide please so your affordable housing investments are really important in the housing market and they they make it possible for low and moderate income households to access affordable housing and through deed restrictions that um that that make it affordable over time to um to stay there um while while they need it so a couple of interesting things that the team discovered while um prepping for this two data points we really wanted to share so of all of the so so we have a fantastic data team in int and uh they crunch a lot of numbers for you to understand the affordable housing gap of all of the rental units that are affordable to 30% area meeting income and Below um let's see where where where are we 20 I I I'm going back and forth with my reading glasses it's that stage of life right um 40% um of those rental units are are deed restricted because of your investments in the Housing Trust Fund and 25% of those affordable rental units from 31 to 60% um are affordable because of your investments from the Housing Trust Fund so it's a pretty significant share of the market that you have made accessible by your Investments uh in addition uh from 2021 to 2023 12% of the new rental units that came online so all of the all of the um rental units um that came online during that time period 12% had affordability restrictions through the Housing Trust Fund so again uh a really um impactful investment and finally an estimated 3% of homes sold for 315,000 or less were powered by Home Ownership assistance now that's okay but we can do better all right next slide please so just one last note here before before we jump in housing affordability of course is um more than just creating and preserving affordable housing so it has to do with Supply um leverage and Partnerships and I I I I usually do the arm motions which are harder to capture in this setting but um in order in order to get people to have affordable places to live we need more more housing that's the big bubble we've got to have more housing then we need to create and preserve more affordable housing and then we need those people focused strategies that uh help people stay in place or age in place um or access the affordable housing I just wanted to make this connection um as we're talking about uh the Housing Trust Fund that it's an important uh to be in alignment with the kind of build more housing strategies of your comprehensive plan and the conversations that you're having uh with the Udo around um uh increased density next slide all right so your housing investment is scalable but again this is not uh do more of the same so the manager's proposed budget that you all are poised to vote on next week includes a historic $100 million proposed housing Bond uh um certainly this investment does allow you to support more households especially in this environment with escalating um costs but it also allows you to do these other things that you have have expressed as priorities to Scale Pilot models to meet demand pilot models that might be things like um acquisition rehab resale or uh accessory dwelling units U um to test out Innovations um we've collected did several of those for your consideration but I'll just make a note that with Warren Wooten at the helm of housing um you actually have a lot of them in play in this community already um and also expanding home ownership which we've heard you say as a priority um uh is is a priority and then also having additional housing bonds allows you to free up other funding sources for other activities and priorities so just as an example there and we'll talk about some of these others along the way but having more housing Bond investment would enable you to expand your Regional Housing opportunities with federal funds um for example with things that you've done uh uh recently with home and hopa funds all right next slide we're going to talk just a little bit about housing Bonds in North Carolina in general uh so staff from um the budget office um finance and housing and Neighborhood Services worked together with u members of The Nest commission to take a look at um housing Bonds in North Carolina to evaluate how they're utilized in other cities what what is eligible um and ultimately this exercise which you'll see over the next couple of slides is what led to the nest commission's recommendation to city council around the1 million bond with um some anti-displacement uh Focus so you are authorized in North Carolina General statute uh to uh Levy housing bonds um to cover the capital costs of providing housing for low and moderate income households so that includes construction infrastructure property and land acquisition and then quite a bit further down and we can provide you with um with this um so you can see the specifics but it also says the costs of doing any or all of the things mentioned any other Services costs and expenses necessary related to those Capital costs the one restriction that's pointed out specifically in the general statute is that no rent subsidies shall be paid from Bond proceeds so from 2012 to 2022 collectively the six largest cities in North Carolina issued over $443 million in housing bonds next slide please with a wide range of programmed uses which are Illustrated here here and including Charlotte so so what you what you can see here is how each of the cities has programmed their housing bonds over the last 10 years or so um in the different categories and so Charlotte you have used your housing bonds for development Gap financing multif family preservation shelter and Supportive Housing and site acquisition primarily um while you have invested of course in all of these activities through other funding sources um they weren't you didn't typically use the housing bonds um to do so um and that made that made sense when the dollars were more limited um because the housing Bond of course is is was set up initially to be a primarily a source of Gap financing for that development but with an increased investment uh you have an opportunity to consider additional uses um of your housing bonds next slide please and I referenced nest and the nest Commission of course has has reviewed um this information in more detail um and have also made some specific programmatic recommendations to you and Council to protect residents of moderate to high vulnerability of displacement um and they are planning to come back with a few more recommendations um before the end of their term this um later this year in November they wrap up um of the ones that they have shared that you approved arpa funding for last fall um these these six here are um eligible uses for housing bonds so the house Charlotte plus acquisition rehab resale accessory dwelling units rehab of smaller NOA communities small landlord Investments and shared ownership models so we'll talk a little bit about where these all fit in to the investment categories um coming up next slide please arold all right so the next set of slides is to review um these let's see five investment categories and share a little bit about U what you have traditionally done in these investment categories and what are some Innovations or creative other options that you can consider for how to deploy your housing Bond dollars the first category rental housing production uh the the primary model here has been new multif family rental um because this is the the housing bonds are the tool that provide um Gap funding for tax credit developments so you achieve your greatest financial leverage here when you are supporting um uh 4% and 9% tax credit Awards um the limitations there though are that there's a there's a prescribed way of deploying um those tax credits so the number of awards that Charlotte is eligible for uh unit size and composition as well as the locations of uh where where those can be placed there are lots of other models of rental production so there are um mixed income developments of course uh you have supported one of these through a couple through the Housing Trust Fund um most recently the groundbreaking at alder's gate um is a uh mixed income development and the grand opening of Little Rock thank you veric on Seventh fantastic district one um also a mixed income development now when you when you do this with um housing Bond dollars you have to meet a 20% of the units at 60% Ami threshold that's also according to the North Carolina General statute but other models of rental production that you um have invested in in other ways include accessory dwelling units and uh some of the small landlord investments in uh rehab for example a couple of innovation opportunities to consider here um the integration of a housing and model in the multif family rental production so we'll talk about those um opportunities um later uh in terms of what that might look like so how can you incorporate economic Mobility or health or Workforce Development into housing uh and then expanding and scaling these other models of rental production again things like the mixed income or adus which is currently a pilot and then really thinking through how to activate the private Market through incentives um so for example The Nest commission right now is taking a look at different inclusive housing models um that can create mixed income communities and one of the things that they are evaluating in is a tax in increment Grant model that could achieve uh affordable units within market rate developments so you will hear um more about that um in the future as well next slide please the next category we've lumped together a couple of things under the umbrella of site acquisition uh so the the uh largest um area where you have done this with your housing trust fund is of course with your Noah acquisition and Rehab so for example communities like Pepper Tree Lake mist and Hill Rock Estates um the current portfolio of Noah units through the Housing Trust Fund and uh and a little bit of arpa supplement has prevented the potential displacement of over 1,600 households but it's not just Noah that fit into this category you also have land acquisition so the uh we still have an active RF rolling RFP out on the street um for land acquisition in transit oriented development areas um you may recall you uh approved your first land acquisition deal on dorton Street recently um utilizing the transit oriented development fee in L uh income uh We've also included in this category acquisition rehab and resale revolving Loan Fund that can be done one unit at a time or um like we have done with our um Partners at dream key recently um purchasing a whole portfolio of units when an investor is divesting um in Charlotte so a really great opportunity to uh acquire units that um and and create home ownership opportunities um the the last thing I would say here is it's it's Al it's not just acquisition it's also the use of publicly owned land for affordable housing um so you have of course done this with your housing trust fund previously you're going to hear from um the uh uh fantastic uh Partnerships with the faith-based community um and congratulations to council member Mayfield and Warren and all of the staff and partners who put on the faith and housing Summit last week so another great partnership opportunity there um again using um using land um for affordable house housing so in addition to Faith and housing as a as as one of these Innovative opportunities again the housing and models so doing more with the Noah communities um many of them have already uh built this model um as as part of their um uh developments and then there are also some opportunities around more strategic Acquisitions so you think of Noah to or land um H how might we land that helps meet other City goals and priorities for example we've heard an a desire to have more affordable housing in District Six and district 7 land acquisition or site acquisition may be a way to achieve that and finally what what I think of as a a little bit more prescriptive use of city-owned land meaning instead of putting out an RFP that says tell us what you think we put out an RFP that says here's some city-owned land and some ideas about what might work here how do we make this possible so you earlier this year you received an overview of the city-owned land portfolio and uh staff will be issuing an RFP late late summer and try to give you as much time as possible late summer um it's it's a lot of infill property that will allow us to test out some Innovations some missing middle models as well as um some interesting home ownership opport unities next slide and transitioning to home ownership opportunities there are lots of different ways to support home ownership through the Housing Trust Fund you have primarily done production of new for sale affordable housing um but this can be done in multiple models it can be single family attached and detached so it can be Town Homes you've done um quite a lot of those recently um it can look like condos it can be Land Trust um lots of different models there the home ownership can also be supported through flexible home ownership assistance so for example your house Charlotte um program and other down payment assistance programs and also through the acquisition rehab and resell revolving Loan Fund which of course we also noted undersight acquisition so we think there's a lot of interesting Innovations available in the home ownership space um NE The Nest commission is actually currently taking a look right now uh at their um next meeting staff will be sharing with them uh information about different shared Equity shared ownership and social housing models that can help achieve home ownership uh we think there's also more opportunity to align with and leverage other Investments and down payment assistance the state has a program many of our financial um partner institutions have programs uh and then also opportunities around mixed income new developments um and and better lever Ling the incentives that exist in the Udo um so we have actually two two more categories to review um and and then uh we can pause there and see um uh how how we want to adjust the timing okay great all right next slide please all right housing rehab and repair so the city actually invests quite a lot in housing Rehabilitation and repair but has not historically used the Housing Trust Fund for that purpose so this could look like loans to correct code violations and make general property improvements uh it also we also um make this available for owner occupied households and small landlords so that is um uh some work that that the nest commission also has been has been helping to evaluate and advance and uh we scaled up through um the staying in place program last year um this also includes emergency repair so these are grants to address system failures and immediate threats to health and safety so some Innovation opportunities we see here are the ability using housing bonds as the funding source to expand household eligibility for example fixed income seniors perhaps up to 120% Ami um we we would be able to do withow local funds um which is something we cannot do with the federal funds that are currently used for housing rehab and repair we think there are a lot of opportunities we've been doing this through the staying in place model to pair uh housing rehab and repair with income opportunities and other supports for staying in place uh and then we have a team right now that has been working on establishing a shared uh application across multiple programs all right next slide last category shelter and Supportive Housing so shelter and Supportive Housing again is a is a is a category that can look um very different uh depending on um what what is being um implemented so there's permanent support of housing which can be um all all in one building single use or U at scattered sites um but this is supportive this is housing that includes community- based supportive Services um then you can also have a transitional housing model um sometimes called shelter to housing uh which is typically temporary housing 18 to 24 months with intensive Support Services with the goal of moving um households into uh self-sufficiency and then of course emergency shelter um you have invested in um nearly a th000 shelter beds with your housing trust fund previously um both congregate and non- congregate it can also include things like day Services centers so again a lot of opportunity here for your consideration um the integrated funding of Supportive Services so this can be done um where the Capital Construction and the Supportive Services are combined in the uh Gap financing um integrating supportive units into mixed projects this is really a best practice uh similar to what you have done with Ascent Pineville and the uh HOA funds recently so including uh units for households receiving Supportive Services in um in a uh housing community that includes all um all uh affordable units or it could be market rate as well and um lastly there there is an in uh Innovation opportunity that has been discussed with the uh technical teams that are looking at the unsheltered um work group for a home for all um which you heard about a couple of months ago um looking at emergency shelter with integrated services for people with severe mental illness okay so that's a quick overview of the um types and categories um what we have next is a couple of slides that show Bond programming examples from other cities and then um following that gets into the conversation about priorities and prioritization so chair watlington I want to pause I know we have other guests and another topic um so test test with you um where where you would like to go at this point uh personally because we have guests and we've got a time sensitive item I'd like us to make sure that we um we allow them an opportunity to speak and then our our group our committee gets um a recommendation or some type of consensus to take back to full Council for today so I'd like to Pivot um and and go ahead and have our guest uh speak and then come back to this topic but I certainly would like to hear what the will of the rest of the committee is uh Vice chair Madam chair before we have a couple of questions on this piece before going into that next discussion do you want to forego the conversation around this report out in order to have time for part two um not to forego but to go ahead and get the the second item's presentation out and then Circle back to this um before the end of the meeting so that we'll we'll be able to pick up where we left off and then you want all the questions coming after the second item presents that's that would that would be my preference but does anybody have any heartburn yall good thank you okay okay as we begin to uh transition to our second item I'd like to have um board chair uh Stephanie sne and Rocky McGregor there's a couple spots up here you can share the microphone in case no you need to stay for questions um in case there right just two seats thank you all for coming so as we as we begin to transition um as you heard director uh Hepner talk about you know this conversation is all about affordable housing and so the next item which is um a CMS initiative around uh teacher Village which is providing Supportive Housing for um support of housing for our teachers in meberg County I wanted to um uh turn it over to um board chair sne just to kind of frame up um or between the two of you how you want to frame up the conversation this item actually came before the um uh Council last week as we went through straw votes for budget and the request was for committee to hear and understand um since we didn't have an opportunity for staff to evaluate the proposal so we want to just kind of talk about it a little bit here and then see if Council has questions and I will hand it over [Music] to thank you very much uh good afternoon good uh evening uh committee thank you for this opportunity uh to speak with you all uh my name is Rocky McGregor I am uh the senior vice president of noot Health uh I also am a part of the Charlotte executive Leadership Council where I've been afforded the opportunity to be an executive lead executive in Residence um for um the CC for Charlotte meinberg Schools I've been there for about um actually I've been there for two almost two years and I'm coming up on the the end of the the second year here and um January of 2023 I was afforded uh the opportunity by uh Madame chair and uh the superintendent to explore opportunities for housing for teachers uh what we uh were very much aware of is um teachers are leaving the profession and they're leaving the profession in unprecedented numbers this was in 23 at the end of uh 23 just in North Carolina alone uh we lost about 10,000 uh nurse excuse me uh teachers uh for those that know I'm a part of novon Health you got the you got to excuse that slip um we have we lost about 10,000 teachers uh to the profession and we have seen a constant uh growth in this space it is no surprise anyone here that um housing is an issue and it's an issue not just for uh the teaching Community but for a number of different uh members of our community that are in the service space I would just uh Echo a few things that I have uh come to realize given this opport this extraordinary opportunity to work within um Charlotte meinberg Schools and I would I would go back to Andrew Carnegie who started for those that don't know and I know my uh distinguished uh colleague here um dimple who worked at Tia C with me at the time TIAA C that Andrew Carnegie um was appalled when he found out in 1905 that uh what he called the highest profession the teaching profession actually the professors uh um were um retiring into poverty and they had no retirement plan hence TIAA I won't take you down the whole path but he created TIAA put his money where his mouth was and then went on the hill and advocated to bring money today there's I'm a misquote because it's been a while since I work for them but they've got 1 point something trillion dollars and um those that retire are doing quite well I think we have another opportunity today that opportunity that we have today is we are losing our highly qualified teachers and we're losing them because they cannot afford to live in um our community so as I've heard from many members of the community because I've talked to any and everybody that would speak or listen to me um Hugh McCall share with me there were three things that a city needed uh one of those uh was housing the other was entertainment when in whatever form Arts uh Athletics so on and so forth uh he said but the third thing that you needed was a strong education uh system our superintendent has um made it her mission to say that to solve the issues we must have the best and brightest teachers to solve the issues with our our students so when in January 2023 I was asked to look at this uh um I did that through a lens of going across the entire country and having conversations what we are asking for because I'm assuming that um everyone has had the opportunity to have uh this document so I'm not going to read it to you but I'm just paraphrasing what's there what we have um made a determination of is um and this was led by Madame chair sne we've got to have some skin in the game for two long Charlotte mecklinburg Schools 20,000 employees 141,000 students 184 schools with a $2.1 billion budget the 16th largest school district in the entire country we've got to have some skin in the game so just as unprecedented as the relationships that have been EMB marked by superintendent Hill and Madame chair sne across the county and the city I would also say that as we look at the challenges that we're facing around housing we they challenged uh they challenged me to go out identify give me one moment if everyone can please just verify your phone is on vibrate or silent please thank you let me make sure mine is on right they asked me to to um make sure that we had some skin in the game I think that's important for me to say because you all have to tell me never have I heard that CMS came to the table with assets asking for support that I'm aware of so what we have is and as you can see inside the document that I provided uh if you scroll down a bit we are proposing we are proposing uh that the land that we have within CMS not County Land Charlotte mecklinburg School land we are uh stating that that land is something that we want to put up and we want to come up with an Innovative uh thought-provoking forward-facing potential solution that we're looking to Pilot and with that pilot you see there the 1.5 that's that's the least that the land that we're talking about um per and and uh this is not my space but I will tell you uh that um the way uh the prices are structured is to look at the total number of units okay uh the cost of the um uh the land and you multiply that and you get a per unit price that's that's how it's done um minimum of 1.5 but we're truly talking you know well up to 2.54 5 million doar that Charlotte mecklinburg Schools is bringing to the table okay for this initiative that we're talking about for the teacher um um effort we are proposing that this is going to cost around 30 to $40 million $30 to $40 million so what we did was uh we took the approach of reaching out to each uh council member individually to sit down and share with them what our findings are sometimes the timing just doesn't line up but the urgency and the fierce urgency of now requires that we bring this forward and look for the the partnership and in doing that what we found uh was that our ask was for $1 million out of that 30 to $40 million that we're looking um that that we'll need um in totality which is about 2 I guess 2.5% I guess is uh what the ask is so the the the last piece that I wanted to share before um I open it up for questions or or perhaps Madam uh chair Sneed um wants to State anything is I am not a historian but I am I am motivated by those who have seen things through and when I look back back on Martin Luther King's message I have a dream most pull out just the quote of the fierce urgency of now which is within that as well as within um Beyond Vietnam um that he he also um um gave a speech on and when you define the word Fierce it's the furthest thing away from who I know Martin Luther King to be when you look up Fierce is hostile it's destructive it's violent it's moving with such tenacity because it's required the fierce urgency of now I I find myself asking myself many times when is now because I don't feel the fierceness in the move compared to the urgency of the need that we have for teachers so I'm going to pause there we we have have uh We've Illustrated the the ask I think someone um I believe it was Madam chair uh watlington that that asked for what is the money going to be um spent on I want to be very clear on this this is a pilot this is innovative these are not things that we're going to hit accurately okay but it's not going to stop us from moving forward and taking action this is a a partner that we've been working with that has been tied at the hip for those that don't know back in 2016 2017 Laurel stre Laurel Street uh properties actually made this proposal to Charlotte meinberg Schools back then where would we be today had we taken advantage of that proposal so I'm going to pause and see if Madame chair has anything else that she would like to say I think you you you summed it up well um just as the chair I just want to impress upon the committee here and the public that is viewing this is that the short thing is that or the short answer is that we're in a state of emergency and we have to do things differently in order to be able to recruit and retain our teachers we are losing teachers at an exponential rate and it's not just Charlotte mecklinburg Schools as Mr McGregor mentioned we lost 10,000 teachers in the state of North Carolina alone our numbers of our first year school vac vacancies first day of school vacancy for teachers is growing exponentially every year and that's for a number of reasons but a top reason in the survey results that we've provided to you as well is that the affordability of of Charlotte so why is this important particularly for teachers uh particularly for teachers if you know our teachers that have four-year degrees they have four-year degrees often student loans are making less money than what what city workers are making that is a travesty the all there are a limited amount of things that we can do as a board with the constraints that have been put on teacher funding and P and funding to our education system that we can support our teachers this is a way to do it is through is through housing to be able to recruit the best and the brightest so that we can have a highly qualified teacher in front of every student in every classroom that is key why is it it key because I don't have to tell you that everything a lot of things Center in education if you want to talk about um economic Mobility education if you want to talk about access to health care education if you want to talk about crime and safety education all of these things you cannot talk about these things without K12 education the investment has to be made in our education system if we're going to look at making changes now and generationally in the future we can keep throwing money at the end results of things but we have to make it the investment in order to change the trajectory of things we have to invest in K12 education this is a unique opportunity a unique opportunity for us to come together in a very unique way um to change things not just for our students for our family but for our city and our County so I thank you all I know that many of you have endured last minut meeting request um to sit down with us about this this so appreciate that you know that the time and the consideration and we're excited that we are here before you today and have made it this far in the process it's very promising and thank you all for those that have expressed your support thus far and I apologize Madam chair I just wanted to um I know I think I did it in my email but uh Warren Wooten we've been working with Warren for um I don't know more than a year and I have to tell you what you all already know um the the gentleman looks uh to get to a yes for all sides and um I just wanted to Echo The Innovation and the partnership that he has afforded us uh myself and a number of other individuals and I just wanted to publicly say thank you warn um for all your efforts thank you so much does this conclude the presentation part of this item yes Madam chair we we um provided a one page just so that the public could follow us we had previously provided um um uh documentation presentations so we didn't want to take the time I know uh last we spoke you had some questions you wanted to ask us and we wanted to leave that open for those questions awesome thank you uh the first thing I'll do before I open it up to the floor is um I'd just like to hear a little bit from our staff based on what they have seen um in the presentation far just kind of cue us up knowing how we're accustomed to consuming this data uh can you just help us uh understand what it is that we are looking at or how this compares to what we what we've done previously if you're able I'm not sure waren if that's you or if that is uh director Hefner but just can you set the table for us given that some of the questions that we had last week were in regards to how this compares to what we typically uh do or how we typically assess um the viability of a project sure uh thank you m watlington and just want to Echo uh that you know CMS has been working very hard to solve this problem for how do they provide adequate housing for um their teachers they've been looking at lots of different programs this is just one of the ideas that they've been working very diligently on uh I have uh I've looked at the information that you see in front of you uh this is different in a couple of ways so just to frame it for Council in terms of what we typically get in in a Housing Development Fund request and what you're looking at here this is much earlier in a process than we would typically see so you're looking at here as kind of the the the broad Strokes of a project um you know the the $1 million uh request compared to a $40 million project is is very good leverage for the city and we haven't discussed if there would be an additional ask once they get to construction um and so I don't I don't have that answer for for you um and and again what you're looking at here the the cost that I see on the screen are fairly consistent with the cost for doing these types of projects so none of the the cost that you see um look out of the ordinary for the scope of a project like this um the difference here is is that you would be making an investment in a project earlier than you typically make the investment you typically come in and you make an investment in a construction phase they're requesting that you come in in a pre-development phase so so uh chair welington that's I I have the information that you have um what I'm seeing is is nor is normative for for this type of project um and just want to point out that for Council that it's a little bit earlier in a development process than you have invested in the past thank you I appreciate that um what I'll do is I'll if if there are already hands raised Vice chair if you can help me out if there are folks already in the queue I cannot see Ma Ma we're going to go through the committee starting with council member as mayor as well as council member Johnson Brown myself and I think council member Anderson has a question as well so can I before you because we're going through committee questions counc as are you ready yes thank you council member thank you uh Vice chairman council member Mayfield and chairwoman watlington U it's a lot of information to to go through I was reading through one pager here I see on the in the back it says maintain tax status if you could just elaborate on that this is the first time I have seen that request come through um who would address that are you asking that staff or you I mean who whoever can respond I we can speak to it if you sure okay um and just the first thing I wanted to say if I may um is we're not asking for Housing Trust fund dollars with this request uh in regards to the tax uh maintaining the current tax status um Charlotte mecklinburg School land is not land that is taxed um today so um a part of what it is that we're looking to do with this Innovative you know uh pilot is how might we um find a way to to reimburse um taxes um how might we find you know a way to do some type of tax Grant understanding what the statutes don't allow um um but there are some some opportunities that we have if we're able to do that then what that affords us is the opportunity to keep our cost down right but it's also not something that the city has in its budget currently because it's CMS land and it's not taxed today right so um our ask is as we're looking at private investors to come in to make up the the Delta that we're talking about here is if we can find some way to partner um to look at taxes and not create taxes that don't exist today for Charlotte mecklinburg School land then that is a lever that we can leverage to keep the cost low not just today but in the future for teachers follow okay so let me make sure I get this correct so what um so this land is currently not because it's owned by CMS there is no property tax on it uh what you're saying is that you want to make sure that that status continues correct correct so for affordable housing is there a statutory requirement that if if if the if CMS land TR gets transferred to affordable housing that they would have to pay taxes is it who can speak to that Mr Heath and Mr Heath just for clarification Council mme if I'm hearing you correctly once this land gets developed and there is now housing on this land yes does that change because it's no longer just CMS land that hasn't paid taxes it is now a tax generating potentially piece of property so what does that look FL so I'm going to give you two different answers the first one is is that CMS has been working for years with their legal counsel around the allowance of what they are allowed to do with their land and how that land is allowed to transfer um between parties um we need to have some additional conversations around that because it is it is a very complicated process so um aside from that um there there are several structures that might work in a certain situation like this the one that you're most familiar with would be a nonprofit Land Trust so um again I can't talk to the specifics of this project because I haven't been advised by Council and I haven't looked at the specifics of this project but but there are strategies that CMS could deploy um to uh lower the tax burden on potential residents of the development lower the burden on residents so would this be for sale product or would this be for rent product it's rental this is all rental okay so this will translate into lower rent for those who are living there if if there is a reduction in property tax correct correct okay well um you know Rocky you and I have worked at Tia and you know we serve those who actually serve others our community so it's it's good to be back here discussing our teachers um you know my my my daughter starts at CMS next year hopefully she'll get into the uh one of the programs uh but I I certainly see the return on our investment here uh because if I look at per unit cost is a fraction of what we are used to seeing so certainly I appreciate the Innovative leadership here um I I appreci appreciate that you all have a skin in the game because this is CMS own land um certainly we like to see more return on our investment leveraging partnership innovative ways uh there are some questions I have about just I need more details around the tax tax cuz um and how that would work because that's new to us that's pretty complicated you know what what would the additional ask look like uh because Warren mentioned there could be potential ask before the construction starts uh do we know what that would look like or that's still it's too premature to have that conversation so so you you could I understand why we would say it's premature to have that situation um answer that question because as I said this is a pilot you know it's kind of like the jari window right there are things that you know and there things that I know there are things that I know that you don't know there are things that you know that I don't know and then there are things that we both don't know right the jari window having said that this is a pilot for us we are looking to have um from a standpoint of a cash ask not from the land trust but a cash ask we excuse me we're looking to do that once okay so there would not be any additional ask for this project for this phase that is not our plan to do that so like no additional ask for 100 units after $1 million in design so for this pilot right for this pilot of the 100 units that we're going to put on some CMS land we're not looking to ask for any else from you as we go to our next project where we're looking at hey how might we be able to bring some of your team members into um you know we we've got as you all know L all over the place right and we're trying to be very strategic it's not we're not just going where the land is we're going where the need is we have teacher needs that are very very difficult for us to feel when you look at a solution like this for individuals who work two and three jobs and I'm I'm not doing this just for grandstanding we have homeless teachers um and I want people to be aware of that that's a true statement so I I just want to be clear that as we move to the next project once we take the information that we learned right and we present that to you yes we will come back for the next phase and say hey here's what we learned perhaps we do 200 units remember this is 100 units this is a drop in the bucket excuse me folks just as a process check we only have 25 minutes left and a lot of questions to get through so if we could be very crisp and concise in the questions and the answers so we can make sure that we can get to something that is actionable by the end of this discussion that would be great thank you thank you madam chair yes uh thank you madam chairwoman um because we are shorten time I'll just uh have one last question in comment it it breaks my heart to hear that we have teachers that are homeless but it also breaks my heart because we have our city employees like Solid Waste workers that are housing insecure um I I do support the proposal um but when staff said that they did not have an opportunity to evaluate this specific proposal I do want to give them an opportunity but I I do support the proposal I think this is a very um I mean this is a no-brainer for us uh because we leverage our money to the fullest uh so I would like us to see how we can can how we can support our teachers and CMS in getting this funded uh but I with that said I want to make sure that Renee uh because in her openings she did say that she did not get an opportunity to evaluate this proposal uh so I to make sure that there is an opportunity for you all to do so that's all I have um Council Johnson thank you madam Vice chair so one of the things that that I was thinking about when you mentioned maintain tax status I wrote down land trust but I also wrote down eich Noah so there's a and and keep me honest but there is a u an initiative that that the U that we've approved or that we collaborate with with Mark Ethridge and his team and the Noah so I think that might be an opportunity with that with that and I don't I know you're not prepared to talk about that today but if you could give some details and if that would fit in this proposal I'll take that one just because it ties back to part of the earlier presentation currently your Noah rental subsidy program which is a partnership with meinberg County uh mecklinburg County and and the city um have funds that pay rental subsidies within those Noah units um that are based on the property tax calculations but is not a property tax Grant or reimbursement and uh one of one of the innovations that um we referenced earlier that Nest commission is evaluating is how might that work in new construction and what would it look like if it were indeed a property tax based grant uh that requires participation from mecklinburg County because again and meberg county is roughly 2/3 in the city just onethird of the property tax okay thank you and then the reason this is different because this is pre this is in the pre-development phase phase versus the construction phase I would just say to the the team and to council if this is something that we're going to um support then we want to change our policy uh for other development that they are able to submit for pre-development phase and and also post construction phase if you recall there was a development on the east side that that I supported last year but it wasn't approved yeah because it was post construction so we need to take a look at the flexibility in our application process I think this is a transformative idea I talked to you guys about it but I think that we need to be prepared if we do support this that we want to U look at our policy and and be prepared to make those changes thank you okay as we have about 20 minutes left between myself council member Brown and Council I've got questions well excuse me Vice chair I've got questions as well okay so we got 20 minutes between all of us so my for mine I need some clarification one I am of the mindset of the last from the last conversation basically we to my understanding we earmark the dollars until we get additional information I have some concerns with this language that is in front of me we have noted on this one pager that the medium home price is around 645 according to the bank rate is around really 328 to 428 which is what we're dealing with with in Charlotte today so I want Clarity on that I do have concerns with this language regarding maintaining the tax status what does that do moving forward as far as I am not a fan of setting new president financially as we move forward even if we make this consideration through the oper dollars it needs to be very clear because we have not done this for any of our partners so we need to be prepared that if we move forward with this for the less than a million and some change that we have left right now in ARA dollars based on allocations and requests that Council and others have made we have around 1.8 million left in future ARA funds we need it would be helpful for me to understand what precedent this would be setting if we were to move in this direction also with the expectation on our housing trust funds which are limited we have a full process I need everyone to go through that process because our process is very competitive and it's also very difficult to receive funding so I need to make sure that we have a clear understanding as was mentioned today that if this is just a one-time request for this piece moving forward I need to know exactly how city of Charlotte employees are going to benefit this is only 100 units what's identified in here is more than a 10,000 staff teacher staff shortage we have more than 9,000 employees within the city of Charlotte we don't even have all the numbers of how many of our staff need assistance 100 units at a time is not going to address both I can clearly see this model being needed for multiple years just to address the teacher need it is a very difficult conversation of which I had I had to chance to meet with chairwoman sne as well and I Shar with her I wish this conversation was coming in September versus right now while we're in the budget cycle because this is a very difficult conversation for me to go back to the community when we have our staff that need access to housing and we're saying we don't necessarily have it but we're committing not just this this is just the beginning of additional funding requests that may be coming it will be helpful to know after this the expectation of County funding towards them since they have also stepped into Housing Development Mr Wooten you know I love you y'all have been having this conversation for a while I would have liked more information today as far as how this actually plays out I am concerned about us setting a new president and what that does for all of our partners that have been out there my colleague know I'm not a fan of post development request this is something new I think there is value in this conversation but this needs to be a conversation that's accessible to all of our developers we just had over 500 last week at our faith and housing Summit the majority of the conversations around pre-development cost if we're setting a new president we need to be ready to back this up when all these requests come in so it doesn't give so there's not a perception in community that we're picking and choosing because that also correlates for some people winners and losers there's a need across the board there's a need for our teachers there are there's a need for those who clean up the schools there's a need for those who are providing the food there's a need around the city I need to know for me that our tax dollars when we also paying to the county as well as to the state that our tax dollars are also benefiting our employees who are in need not just setting ourselves up for a unlimited funding line item that is going to be expected to go with helping to address our teachers need those are my comments on that I am turning this over to council member Brian thank you so much um council member Mayfield So I um I really appreciate the presentation you put together um I think it's creative Innovative and thoughtful um and to be able to go into an I'm going to be less than two minutes on my statement uh the homework is here we can discuss what we need to discuss they put a one page together I thought that was very thoughtful and supportive and time uh based off time constraints that we have to be able to do that teachers are homeless our city workers aren't homeless uh we can start somewhere showing that we want to stand in partnership with with the county and so for me it is a no-brainer as someone one of our colleagues said I don't disagree with with what council member Mayfield had said there's a need across the board but we're going to start somewhere and so for me and looking at this and speaking with chair and how they put it together and we have teachers in here with signs that's saying that it's essential to support them people know who I am and how I stand on community and how I feel about our workers being homeless but I also care about teachers being homeless so for me it's short and sweet I will be supporting it council member t w Brown District 3 Council Anderson uh thank you uh Madam Vice chair first let me just say that I firmly believe that CMS a strong public school system is vital to the overall ecosystem to Charlotte's growing economy we have to have belief and faith in the fact that we have a strong public school system and I understand the constraints that CMS is under as it relates to uh attracting and retaining uh teachers the information that is on this one page or in particular the um 18.2% of attrition rate with teachers with 93% of their survey respondents saying that housing cost is the most important issue this is just one in my perspective one creative way that we can invest in a model uh provide a million dollars of arpa dollars not our taxpayer dollars arpa dollars and in fact potentially arpa interest dollars um to help create an Innovative model that we will hopefully be able to scale and and will be able to benefit city workers as well so to me I think that the return on investment of $1 million is clear with the as I've just heard not a an additional ask for this first phase but when we get to a phase two where we're thinking about potentially a village for city workers and other civil servant workers then that that is not a part of this conversation and I think it should be decoupled from this conversation I think the other piece that I've I've heard here is also the um the tax structure and um Rebecca I might be wrong on this but we mentioned veric and sth earlier uh in this meeting and that was a unique tax structure as well working with um Little Rock am Zion church and actually the same uh development partner here with Laurel Street and Dion Nelson we have a lot of faith in her and her ability and insight and quality of projects that she puts forth in the city and so that might be um a potential um model or precedent that we can look at as it relates to the tax piece because we did do an initiative with tax and Little Rock am Zion however I don't believe that that ask is coupled tightly with this 1 million I believe that's just SE an additional ask of consideration uh that would you know of course maintain affordability So based on what I have read um through the long version of the decks I've had opportunity to speak with the chair and to um she was very very uh kind to answer the questions that I had and understanding what's here and understanding the involvement of loyal loyal Street I think it it too is just not only a no-brainer but we do have to put we have to put a steak in the ground somewhere right and I don't know an investment even for our city workers where we can provide a million dollars and get a hundred units of affordable housing that's an incredible um return on investment for the city and so I I will absolutely support this I hope we all can support it um as a nod to a way to work intergovernmental on innovative ways that we can address Workforce housing specifically for our civil servants beginning with our teachers but also thinking about our our um city workers as well thank you madam Vice chair Madam chair back to you thank you ma'am I appreciate it is is Dion in the room not at this time no ma'am okay I I'm listening to the conversation and I realized that that the ask here in the stage of a project is preconstruction um but when we talk about return on investment and I hear a million for 100 units that definitely sounds amazing and of course for all the reasons everybody has already mentioned we want to get behind this what I'm what I'm not clear about is that we're clear on what the return on investment is because of where we are at stage of the project and I and I have not seen the long deck so if if the information is there please help me I'm not seeing what what is underpinning these foundational assumptions um for for and I'll just go through my questions but that is my general comment and and because of that I would like us to be very mindful about how we choose and when we choose to distribute these dollars because if I'm understanding What's Happening Here what is being put up by CMS or potentially the county Etc are things that are going to turn into assets if this is truly pre-development dollars and this whole this whole million dollars is for predevelopment we're the only ones exposed to Sunken cost in which our return on investment is negative really um so that's the piece needs to be cleared up for me as I look at this 1 million are these Design Services and Civil Engineering Services Etc from SD through CA or is it just to SD that's a question for staff or for well that's a that's a question for that's a question for whoever the prime mover is which I'm also not clear about who's driving this project um I'm and I apologize um uh Madam chair I didn't hear the latter part of what you the question you had could you just repeat that please sure is the is the are the dollars that I see here that this $1 million estimate from La street is this for design and Engineering Services through SD or is it through CA yes it's through um our ability to get to a place where we can you know get further and and more accurate numbers so we we laid out um what that is for for the million dollars um you know we worked with Laurel Street as you know there's no one here that's um not familiar with Laurel Street I well I shouldn't say that Laurel Street has a strong reputation uh that's absolutely absolutely they do I'm just trying to understand if these dollars are through SD or if they're through CA because if they are only through SD then I would expect there's going to and Madam chair will you clarify SD for all in the room and CA absolutely okay so the phes of um construction so you're going to have this preliminary phase which I thought we were in in which the design services are associated through a schematic design where you basically outline this is how we think the systems need to be put together for this project these are the types of equipment we're going to use etc etc it's a general narrative right and then you've got detailed design then you've got construction documents then you've got construction Administration and all of those have an Associated Design Services fee with it so what I'm trying to understand here is are you asking us to pay to get to the narrative and then more dollars are you asking us to do like 30% design so that we can have a better feel for what you actually can put on the land and what and validate that 30 to $40 million or is this the full cost of Design Services through construction Administration the reason I'm asking the question is because I need to understand if this is a million dollars that potentially could be sunk or and then we need additional dollars no uh going forward to even get to a get to the project or is this everything from a design side and the answer is we don't know that's okay I just no no no no uh Madam chair I'm going just be quick because I want to make sure I respect your you know the time constraints uh we are we are putting this together for us to get to a place to get a more accurate understanding this is the best that we could get from the developer this is the best that she could provide us and yes the next step is to have Engineers so on and so forth go about the business getting that accurate picture okay so this is just through SD then so there's going to be additional dollars required to pay and I think that's what she's saying there will be additional dollars there will not be an additional ask I just want to be clear about that okay um so then the expectation is that once you get through to an SD fa through the SD phase you're going to go find a new engineering team or or a new investor by that time you plan to have your the rest of your investors or do we have a a better view of who is in the queue and willing to invest at this point yes I mean we're partnering with law law Street we're it's a true partnership they're assisting us with the private Equity dollars I mean this is not something that we're this is not our subject matter expertise so we went to someone that has the ability to assist us with providing those those private Equity dollars okay and so then if I hear private equity and I hear L street is going to be the master developer I'm assuming they're also going to be the ongoing property owner yes okay and if that's the case and you're saying that L street is not going to go for any ltech funds to pay for this affordable housing project go for what low income housing tax credit ltech yeah um um and I apologize I'm just trying to follow the the line of questioning and I don't mean to be I really don't you know but what we're talking about is a million dollars to move forward with a pilot I understand I understand and let me help you the reason I'm asking these questions is because if we're going to invest a million dollars for me I want to have some level of confidence that the project is actually going to happen and so I want to get an understanding just like we would do for any other project that comes to to us that that there's some some confidence of viability and absolutely we all have the utmost confidence in Laurel Street unfortunately it sounds like they're not in the room today to provide a little more clarity around what is going on here she definitely wanted to be here she had a four and a five o' she wouldn't surprise room totally understand totally understand no knock against no knock against La street that that this was I know this was a short notice item but those are some of the things that for me to be comfortable releasing these dollars uh to have a better view of what the path forward is again because it sounds like our stake in the game is cash and everybody else's is is about is an asset that they're going to have regardless of whether this moves forward or not so that's just a piece on the financial side and I'm sure that we'll work through it as it goes on um but that's something that I'd like to understand I think that speaks to what Vice chair Mayfield was talking about um as it relates to the same due diligence that we do for any other investment we want to make sure that we do that um and along those lines um when it comes to governance and ownership structure I know that at least on our Housing Trust Fund side of things we at least have some mechanisms in place where um where we've got some lean or something against the property um and we at at the end of the affordability period actually have an opportunity to either extend the unit's affordability or get our money back uh so in in in essence it's it's really a zero loss game for us in that in that way but that sounds a little bit different than what shows up here so I'm just curious about what that potential ownership or governance structure would be given our investment where where are we actually um tied to the asset once it's built so those are some things that um I answered anyway to go get additional financing to actually construct this um so I'll stop there I'm talking fast because I know we only have a couple of minutes left but those watlington I just add that all of those questions and the others raised today are things that staff can work with cm Ms and the developer to answer uh es especially given that this is a different stage of development and a different funding source than we typically leverage for affordable housing uh so we would be happy to to get that additional information and share it back with committee okay that would be that would be great um so okay Madam chair council member Brown had a quick followup and council member asir has a a potential motion awesome thank you all right thanks thanks Madam chair and assistant chair so I want to just know if we can get the questions together that it appears to be that maybe um councilwoman Johnson uh Madam yourself chair and may feel may have some that we can get those together and look over those and kind of work through those so that we can come up with something solid may not happen today how many minutes do we have zero one okay I mean I used the less time today so let's put that on record as well but I want to be able to move forward and work together in an interger perspective so let's see what we can get done I don't know what that looks like but whatever we need to do thank you council member Brown council member asir yes so thank you Madame Vice chairwoman so considering uh chairwoman watlington questions um Mayfield and other committee members questions uh I suggest that um I'd make the motion that we allocate $1 million towards teachers housing CMS teacher H teacher Village housing um contingent upon staff's review and ensuring that there is construction funding in place before our $1 million goes out to ensure that this project does not fail and our taxpayer our taxpayers are protected Madam chair that received a motion and a second okay and if if I may have one one comment I'd like to share as a reminder that you are able to appropriate the $1 million in arpa through your budget and then come back for a separate RCA and Council vote at a later date so there will be an opportunity to address these questions before the approvals are actually given oh and just to clarify M Madam um Madame chairwoman may I I I just have a point of clarification absolutely go ahead um so my motion is separate from the tax exemption status because that is complicated so let's not dilute the two together we'll discuss that separately and how that has an overall tax impact on our day-to-day residents uh so my Mo will come back to that this is just for um reserving a million dollars in our arpa funds and that received a second Madam chair thank you uh dor H were you going to add something council member Johnson did have something to ask I I just wanted to ask staff to review the policy because it sounds like we are setting a precedent for the timing and the funding so let's make sure we look at the policy and be prepared to discuss that thank you when will we see this again then it sounds like that we sounds like we are poised to approve keeping an earmark in our budget um when it comes to an RCA to actually uh release the funds um would like to have had the discussion in committee and all those questions answered by then so I know that this is something that is happening right now uh developing the plan but do we have a sense of when the when we might expect to conclude this conversation ahead of an RCA chair wton I think some of that is at the discretion of the committee uh we can provide answers to the questions that we're able to provide at this point fairly quickly in collaboration with CMS uh but depending on when you would like to if you would like to have additional conversation with committee your next committee meeting is scheduled for uh September so I think it is at the at the discretion of the committee about having further conversation got it thank you ma'am Vice chair you can take us on out so Madam chair just for clarification there it seems like we might need to do what we did last week and that is come back with an additional meeting if we're trying to have this definitive answer prior to the the actual vote right now we're earmarking it but that wasn't a definitive yes that's going to be reported out to committee this evening if I'm hearing my colleagues correctly because again for Mr wooden and and Miss Hefner I need clarification on what precedent we are setting with pre-development costs I don't have a challenge with us providing pre-development cost I need there to be a process cuz again we're getting ready to do some very different things in the city when it comes to development I need to make sure we're setting ourselves up for success and how this moves forward and also if we have other partners that are out there that come to us with a proposal like this that's going to benefit a specific Target what does those conversations look like sure I think um for right now given the time in um I think what I'm hearing and correct me if I'm wrong committee members what I'm hearing is that folks there's General consensus around having the ear Mark for the budget so that from an urgency standpoint seems like a clear recommendation coming out of the committee um the releasing of those funds would happen and cannot happen until the budget is approved in the first place so um that would seem to occur after our summer break anyway um Vice chair we're us to in that we needed to get together to then get our answers uh our answers our questions answered and then try to get an RCA in ahead of summer break I was actually asking for clarification with staff since summer break we are off for full transparency July and August so our next meeting isn't until September so if committee is come what we what the motion from council member asir and what was second said Les earmark this based off the responses to these questions we will not come back together again to get these responses until September which will be act after our budget cycle so I was asking did you see a need for us to have an additional meeting or are we just saying today we're going to earmark it and let them go through the actual process of bringing out true RCA to us that would be by preference I think the for me me what I was looking for at to St is a yes or no in regards to the budget if we're going to includ it in the budget sounds like we will earmark it but there's clearly diligent work to be done um thinking to to um get these funds released through a formal RCA so Madam council member asme so Madame chairwoman uh since we still have a lot of questions pending uh and certainly my motion is is contingent upon ensuring that there is a construction funding in place to ensure that project is Project succeeds to your point so I think that will take some time but we want to make sure that we are doing our part to provide housing to our teachers so that's why we are ear ear earmarking it uh as part of uh first step of the process certainly all right is any further discussion I think you can call for a vote Madam chair absolutely all those in favor please we don't see you on the screen oh so do you want a eye or you want a hand raise no I'm going to turn my video on I apologize I didn't realize it was off can you see me yes can all right all those in favor of the motion on the floor to earmark a million dollar for uh the teacher Village um in this year's budget with the release contingent upon the due diligence that we've discussed please utilizing arle funds yeah utilizing AR interest funds please raise your hand I see one two and a late three oh thank you ma'am I'll oppos wait do I see four I see four what's your vote any opposed are you voting all right not oppos it is unanimous um the motion carries thank you madam hope you feel better Mo motion to thank you mad chair hope you feel better thanks by I see one two and a late three oh thank you Ma all up e e e e e e e e e e e e e e e e e e e e e