Jun 02, 2023 Convention Center Hotel Development Board

[00:00:59]

HOW DOES.

OFFICERS. YEAH.

IT'S NOT A FUNDED POSITION, DR.

HARPER.

VICE VICE PRESIDENT VICE.

IT.

OCEAN VOYAGES. ALTHOUGH.

NO, SIR.

THANK YOU, NORM.

WHAT WHAT WE'RE GOING TO TALK ABOUT TODAY IS REALLY THE HOTEL BUDGET.

[5. Receive and Approve the Annual Corporate Budget (*A portion of this video is without audio*)]

BUT WE NEED TO GET THE HILTON.

WE NEED TO GET THE HOTELS ACTUAL PORTION OF THIS BUDGET APPROVED SO THEY CAN THEY CAN START OPERATING THE HOTEL.

WHAT WE WILL COME UP AND FOLLOW ON A LATER DATE IS AN ACTUAL BUDGET SHEET THAT'S CONSISTENT WITH WHAT YOU'VE SEEN IN THE PAST, NORM, FROM THE CITY.

AND IT WILL SHOW ALL OF THE REVENUES, ALL OF THE EXPENDITURES AND THOSE SORTS OF THINGS.

AND IT WILL BE A BALANCED BUDGET BASED OFF THE WORKING CAPITAL THAT WAS ISSUED AS PART OF THE DEBT ISSUANCE FOR THE CONSTRUCTION OF THIS HOTEL.

SO ONE OF THE THINGS YOU'LL SEE ON THE PNL STATEMENT COMING FORWARD FOR THE HOTEL IS A NEGATIVE NET INCOME FOR THIS STUB YEAR.

THAT IS KNOWN.

IT IS PLANNED.

WE WE PLANNED FOR IT.

WE UNDERSTOOD THAT WE WERE GOING TO HAVE TO GEAR UP THE STAFFING OF THIS HOTEL FOR FOUR YEARS OF OPERATION, BUT HAVE A SHORT OPERATING YEAR AND IT WAS GOING TO LOOK NOT SO NOT SO PRETTY. I'M GOING TO TURN THIS OVER TO JOHN AND JEFF HERE IN JUST A SECOND, BUT I WANT TO COMMEND THEM BOTH FOR WORKING HARD TO IMPROVE THOSE NUMBERS.

THE FIRST TIME I SAW IT, WE WERE LIKE -900,000.

YES. AND NOW WE'RE WE'RE NOT WE'RE FAR, FAR CLOSER TO HAVING A BALANCED INCOME OR POSITIVE INCOME.

IT'S BETTER. IT'S LIKE YOU'LL SEE IN A SECOND IT'S A NEGATIVE ONE SOMETHING, BUT IT STARTS WITH A ONE WHICH IS GOOD.

SO THE WORKING CAPITAL THAT WE PLANNED AND KNEW WE WERE GOING TO HAVE TO USE AS PART OF THE DEBT ISSUANCE FOR THE HOTEL CONSTRUCTION IS GOING TO COVER THAT AND THEN SOME. SO WE ARE IN REALLY, REALLY GOOD SHAPE.

SO JUST KNOW THAT GOING INTO THIS PRESENTATION.

AND JOHN, IF YOU WOULD, LET'S WALK THROUGH THE PRESENTATION AND IF THE BOARD MEMBERS CAN TURN ON THEIR MONITORS, THERE'S A LITTLE BUTTON UNDERNEATH THERE AND I'M SORRY THEY'RE NOT ON NOW, BUT MINE DIDN'T COME ON EITHER.

WHY ARE WE NOT.

IF WE PUSH THAT OUT ON THE MACHINE THERE.

WELL, HANG ON A SECOND.

WE HAVE A TECHNICAL DIFFICULTY.

[00:05:17]

WHAT IF WE RESTART THIS? HOW DOES THAT WORK? I DON'T KNOW HOW TO RESTART THIS.

OKAY. WE'VE GOT THE PEOPLE WHO KNOW.

YEAH. I DON'T KNOW. I'M SCARED TO TOUCH.

DON'T HIT THAT BUTTON. I GET YELLED AT IF I TOUCH THE WRONG THING.

RIGHT THERE. STEP AWAY FROM THE BUTTON, SIR.

THAT'S RIGHT. THAT'S RIGHT.

I'M SORRY. WE DON'T HAVE ANY SIGNAL UP ON OUR.

WE GOT. HOW ARE YOU? IT ALWAYS WORKS BETTER WHEN EVERYONE'S WAITING.

ALL RIGHT. SOMETIMES THEY'RE SLOW. THEY DO? SOMETIMES. YOU KNOW WHAT? THEY JUST NEED AN MRI.

OKAY, THAT WAS QUICK.

I HAVE ONE CARD. THAT'S RIGHT.

LEAVE THIS ROOM. OKAY, GOOD.

IT'S THE POWER. THE POWER OF MRI.

YOU HAVE TO HIT THE THE PUSH BUTTON TO TALK.

YEAH. AND IT'LL.

IT'LL GO FROM A RED CIRCLE TO A GREEN CIRCLE.

YEAH. NO, SIR.

ONCE YOU HIT IT AND IT'S GREEN, YOU KNOW, YOU'RE LIVE.

SO IF YOU DON'T WANT TO BE RECORDED, YOU CAN HIT.

WHERE'S THE RED BUTTON? YOU HIT IT.

JUST HIT THE PUSH BUTTON. I'M SORRY.

THAT RING WILL TURN RED OR GREEN.

IT'LL TURN. THERE YOU GO.

HEY. OKAY. GREEN LIGHT.

JOHN. YOU READY TO GO, SIR? ALL RIGHT. WELL, GOOD MORNING, EVERYBODY.

GOOD MORNING, MR. HANNAH.

GOOD MORNING. THE REST OF THE COUNCIL.

PLEASURE TO BE HERE. THANK YOU SO MUCH FOR HAVING ME HERE TO BE ABLE TO PRESENT THIS, THE PRESENTATION FOR A BEAUTIFUL HOTEL THAT HAS BEEN BUILT.

AND I WOULD JUST LIKE TO KIND OF JUMP IN AND TALK A LITTLE BIT MORE AS WE AS I PRESENT TO YOU.

YEAH. IT'S GOOD TO SEE THAT FAR.

WHAT YOU SEE ON TOP ON ON YOUR SLIDES RIGHT NOW, LADIES AND GENTLEMEN, IS THE BUDGETED PERFORMANCE THAT WE'RE LOOKING FOR THE HOTEL.

WE WE DON'T HAVE A PERFORMER FOR THE HALF YEAR THAT WE ARE GOING INTO.

AND SO WHAT WE DID WAS WE USED THE PERFORMER FROM THE THE FOLLOWING YEAR, THE 2024, WE TOOK THE THE NUMBERS THAT WE WOULD EXCEED IN 2025 AND WE BACKED IT INTO 23 AND KIND OF DIVIDED BY HALF.

AS WE STARTED TO BUILD ON THOSE NUMBERS, WE STARTED LOOKING AT WHAT THE MARKET WAS DOING, WHAT WE HAD ON BOOKS WHEN WE SAT ON THE BOOKS, WHEN WE WHEN WE OPEN UP OUR HOTEL, WE STARTED LOOKING AT WHAT WE ARE EXPECTING TO GET IN THE HOTEL.

WE LOOK AT THOSE NUMBERS.

WE LOOK AT SOMETHING CALLED A STAR REPORT.

THERE'S TWO WAYS OF LOOKING AT STAR REPORT IS YOU HAVE A COMPETITIVE SET.

THAT MEANS EVERY OTHER HOTEL THAT YOU'RE COMPETING WITH IN THAT IN THAT SET, INITIALLY WE WERE STILL BUILDING ON THE COMP SET, SO WE HAD TO RELY A LOT ON THE ABILENE CONVENTIONS BUREAU FOR OUR COMP SET TO SEE WHAT KIND OF BUSINESS IS COMING INTO THE CITY, WHO ARE THE KIND OF, YOU KNOW, THE THE TOPS, THE MOVERS AND SHAKERS IN THE BUSINESS.

AND SO WE KIND OF START ALIGNING OURSELVES WITH THAT.

THERE'S A LOT OF DATA THAT WE WE LOOK AT, BUT AT THE SAME TIME, WE CAN'T REALLY USE IT BECAUSE WE'RE NOT SURE WHERE WE WOULD STAND AT THAT POINT IN TIME. BUT WE AS WE AS WE LOOK AT THE DATA AND WE START LOOKING AT SOME OF THE PAST YEARS FOR THE CITY, WE START TO SEE, OKAY, THIS IS WHERE WE WOULD END UP IN.

SO LOOKING AT THOSE NUMBERS, WE WE SEE THAT OUR OCCUPANCY FOR THIS YEAR WOULD BE AT A 55.8%, AS YOU SEE ON THERE.

AND THE OTHER NUMBERS YOU SEE IS THE REVENUES FOR THE ROOMS. WHAT WE'RE EXPECTING, WHAT WE'RE EXPECTING FOR THE FOOD AND BEVERAGE REVENUE.

I DO HAVE TO SAY AT THIS POINT IN TIME, FOOD AND BEVERAGE REVENUE IS SOMETHING THAT.

YOU REALLY CAN'T PUT YOUR FINGER ON UNTIL YOUR RESTAURANT IS OPEN, UNTIL YOUR FOOD AND BEVERAGE DEPARTMENT IS RUNNING.

WE DO KNOW AS YOU OPEN UP A NEW RESTAURANT, YOU OPEN UP A NEW OUTLET.

THERE IS A LOT OF BUSINESS THAT COMES THROUGH THE DOORS.

WE CAN'T REALLY USE THAT BECAUSE WE DON'T KNOW.

SO WE HAVE TAKEN A TAKEN A TAKEN A, SO TO SAY, THROWING A DART FOR THAT AT THAT POINT IN TIME.

[00:10:03]

STANDING HERE, I CAN TELL YOU WE CAN BLOW THAT OUT OF THE WATER DEPENDING ON HOW WE'RE LOOKING AT WHAT OUR MENU IS COMING, WHAT WE ARE DOING IN TERMS OF WHAT WE'RE PRESENTING TO ABILENE AND THE FOOD AND THE PRESENTATION AND THE SERVICE, WHICH I'LL TALK ABOUT IN A FEW MINUTES.

I HAVE A QUICK QUESTION. YES, SIR.

WHEN YOU SHOW F.Y.

20, 23, WHAT DOES THAT WHAT THAT GOES THROUGH WHEN IT GOES THROUGH THE END OF SEPTEMBER? SEPTEMBER? YEAH, THAT'S THE THIS IS REALLY JUST ABOUT A THREE MONTH OR ARE WE DOING AT THE END OF THE CALENDAR YEAR.

OKAY. THANK YOU. SO AT THE END OF THE CALENDAR YEAR.

BUT IT STILL IT'S A STUB YEAR.

YEAH. IT'S LESS THAN SIX MONTHS OF OPERATION.

CORRECT. FISCAL IS THE CALENDAR YEAR.

OH, GO AHEAD. EXCUSE ME.

IT'S SHOWN AS A FISCAL YEAR BECAUSE IT'S ONLY A PARTIAL YEAR.

CORRECT. THESE NUMBERS ARE FROM OPENING DATE OF JUNE.

OKAY. NO ONE IS REQUIRED TO PROVIDE US ANOTHER BUDGET FOR THE FULL CALENDAR YEAR.

THANK YOU. CALENDAR YEAR 24.

YES, SIR. THANK YOU, JEFF.

THANK YOU, JEFF. THAT WAS THE TEXT I JUST SENT JEFF.

SO. ANY QUESTIONS ON THAT? BECAUSE I KNOW SOME OF IT PROBABLY DOESN'T MAKE SENSE IN TERMS OF ADR.

YEAH. JOHN, COULD YOU EXPLAIN LIKE WHAT SPR AND TGC AND SOME OF THESE ABBREVIATIONS, WHAT THEY MEAN BECAUSE WE'RE NOT HOTEL OPERATORS? YEAH. THANK YOU, SIR. SO I'LL START WITH AN ADR.

SO WE LOOK AT THE OCCUPANCY, WHICH IS WHICH GIVES YOU THE TOTAL NUMBER OF ROOMS MULTIPLIED BY THE NUMBER OF MONTHS THAT YOU HAVE.

SO YOU HAVE X NUMBER OF ROOMS AND WHAT PERCENTAGE ARE YOU THINK YOU'RE GOING TO STAY OCCUPIED? SO THAT'S KIND OF THE PERCENTAGE.

THAT'S KIND OF A STRAIGHT NUMBER.

THE ADR IS IS A AVERAGE DAILY RATE.

SO WHEN THOSE ROOMS ARE OCCUPIED AND YOU ARE YOU'RE USING YOUR RATES AND YOUR RATES FLUCTUATE BASED ON DEMAND.

SO AS THEY FLUCTUATE, YOUR RATE CHANGES.

AND AT THE END OF THE DAY, WE CALCULATED PER MONTH.

SO WE LOOK AT AN ADR AVERAGE DAILY RATE OF WHAT WE CALCULATED PER MONTH IN TERMS OF ALL THESE UPS AND DOWNS AND DEMANDS AND, YOU KNOW, BEING A SOFTER MARKET OR BEING A MORE AGGRESSIVE MARKET, DEPENDING ON THAT AND WHAT WHAT'S COMING INTO THE TOWN, WE THEN FINALLY THAT NUMBER COMES UP AS TO WHAT YOUR HOTEL ACTUALLY SOLD AT.

I COULD BE AT 289, BUT THE NEXT TIME, IF I'M IF I'M NOT THAT BUSY, I COULD BE UP IN THE 170, 180.

SO THAT KIND OF AVERAGES AT THE END OF THE MONTH WHAT YOU GET.

THE REV PA, SO THE REV PA IS REVENUE PER OK.

PER. AVAILABLE.

SO IT'S THE REVENUE FOR THE ROOMS THAT ARE NOT OCCUPIED.

IT ADDS TWO OCCUPIED ROOMS AND IT TAKES THE NON OCCUPIED, IT TAKES THE ENTIRE HOTEL AND AND IT GIVES YOU WHAT NUMBER YOU WOULD BE AT IF YOU IF YOU WERE AVERAGING THE TOTAL THE TOTAL HOTEL.

DOES THAT MAKE SENSE? OH, THANK YOU.

JEFF JUMPING IN.

MAYBE I CAN SIMPLIFY.

SO. THE FRONT ROOM IS DIVIDED BY.

SOME PEOPLE PAY LESS.

MAYBE THEY GOT A DISCOUNT BECAUSE OF.

AVERAGE OF ALL OF THOSE RATES ON ANY GIVEN PERIOD.

READ. I USED TO DO SIMPLE MATH ON IT IS.

AVERAGE RATE. 70%.

$70. SO IT COMBINES OCCUPANCY AND RATE AND RATE SO THAT ALL HOTELS CAN BE COMPARED ON.

REVENUE IS THE SIMPLE MATH.

OCCUPIED ROOMS. AVERAGE DAILY RATE FOR THAT PERIOD.

DON'T KNOW WHAT YOU. YES, SIR.

YES. SP STANDS FOR SALES FOR OCCUPIED ROOMS. SO. YOU HAVE OCCUPIED ROOMS, YOU HAVE GUESTS BUYING SUNDRIES.

YOU HAVE BUYING FOR THEM TO GO TO THE MARKETPLACE AND BUY.

IF YOU ARE SELLING WINE, NOT ACTUALLY, THAT'S FOOD AND BEVERAGE.

IF THEY'RE SELLING ANY THE THE INCIDENTALS THAT THEY SPEND OTHER THAN THE ROOM, I SHOULD SAY, THAT IS WHAT THAT IS CALCULATED ON.

SO YOU'RE EXPECTING EACH GUEST ACTUALLY A ROOM TO SPEND THAT AMOUNT OF MONEY.

SO THAT'S HOW YOU. SO JOHN, THAT'D BE LIKE IF I WENT DOWN TO THE THE KWIK STORE AND BOUGHT A SANDWICH OR A COKE OR SOME ASPIRIN OR DEODORANT THAT I FORGOT OR WANTED TO SENT MY LAUNDRY TO SHIRT STARCH, THAT SORT OF THING.

[00:15:07]

OKAY. SO THAT'S THAT'S WE KIND OF KEEP KEEP AN EYE ON THAT.

WE PUT IT IN OUR BUDGET. SO WE KIND OF STAY IN LINE WITH THAT BECAUSE THAT'S KIND OF OUR, OUR MARKETING TOOL, OUR OUR AHA MOMENT FOR OUR TEAM MEMBERS.

LIKE, HEY, WE'RE DROPPING ON THAT NUMBER, YOU KNOW, HOW ABOUT START UP SELLING, TALK ABOUT IT.

SO IT REALLY HELPS WITH WHEN YOU'RE BUILDING SALES BECAUSE YES, YOU ARE GETTING OCCUPANCY, YOU ARE GETTING A CERTAIN DOLLAR AMOUNT THAT YOU'RE GOING TO GET IN ROOMS. BUT THEN THE ANCILLARY, YOU GOT TO PUSH THAT BECAUSE NOW YOU'RE RIGHT THERE.

YOU GOT THE STATS THERE.

EVERYONE'S WORKING THERE. SO SO THAT'S KIND OF WHY WE KIND OF KEEP AN EYE ON THAT NUMBER.

THE NEXT ONE IS THE TGC, WHICH IS IT BASICALLY IS STANDS FOR TOTAL GROUP CATERING CONTRIBUTION.

SO YOU HAVE GROUPS THAT COME IN.

WE HAVE GROUPS IN TWO WAYS.

WE LOOK AT IT IN TWO WAYS, WHICH I'LL TALK ABOUT LATER IN THE SLIDES.

YOU HAVE GROUPS THAT COME IN WITH ROOMS AND THEN YOU HAVE GROUPS THAT COME IN WITHOUT ROOMS. SO THEY'RE JUST GOING TO USE THE EVENT SPACE.

YOU'VE GOT A MEETING, YOU'RE GOING TO BE THERE ALL DAY AND THEN YOU'RE OUT OF THERE.

YOU'RE NOT REALLY STAYING.

AND THAT'S KIND OF BROKEN DOWN ONTO EVEN IF THEY HAVE ROOMS, WHEN DOES IT REALLY ACTUALLY COUNT AS A GROUP WITH ROOMS? BECAUSE THERE'S A CERTAIN NUMBER, IT'S TEN PLUS ROOMS AND IT'S TEN ROOMS NOT DIVIDED.

YOU HAVE TO HAVE TEN ROOMS ON ONE DAY TO BE ABLE TO QUALIFY FOR THAT IN OUR IN OUR PLANNING, WHICH I'LL SHOW YOU.

WE'LL TALK A LITTLE BIT MORE ABOUT THAT LATER.

THIS IS SOMETHING CLOSE TO MY HEART.

I'LL BE HONEST WITH YOU.

WE WHEN I MOVED HERE IN SEPTEMBER, CONNECTED WITH ABILENE A LOT.

I'M HERE WITH MY FAMILY.

AND AND I JUST HAVE TO SAY THAT ABILENE HAS REALLY WELCOMED US AS A FAMILY.

AND AND I SAY THIS.

I DON'T KNOW WHAT YOU ALL DRINK, BUT HOSPITALITY EXUDES FROM YOU.

AND I HAVE BEEN IN HOSPITALITY FOR 30 SOME YEARS.

AND FOR ME TO JUST SEE THAT I WAS VERY, VERY GRAVITATED TOWARDS THAT.

AND AS WE START BUILDING OUR HOTEL AND WE START BUILDING OUR OUR POSITIONING, THIS CAME A LOT TO ME AS WE TALKED IN OUR SALES TEAMS AND OUR IN OUR GROUPS OF HOSPITALITY PROFESSIONALS THAT WE ENDED UP HIRING A BIT.

I USE THE WORD ROOTED, AND NOW FROM WHAT I SEE, ROOTED IS A LONG AWAITED.

ODELL FOR THIS, FOR THIS, FOR THIS COMMUNITY IN DOWNTOWN, I SEE.

ROOTED AS A KIND OF INTERWOVEN IN THIS IN THIS FABRIC OF ABILENE.

I FEEL LIKE YOU'RE RIGHT IN THE CENTER OF DOWNTOWN.

YOU ARE RIGHT.

THE CENTER OF ATTRACTION, OUR HOTEL.

AND I FEEL LIKE THAT KIND OF CAME OUT AS WE WERE TALKING.

AND I ALSO USE THE WORD ROOTED FOR OUR SERVICE BECAUSE WE ARE GROUNDED.

WE ARE THERE FOR YOU.

WE ARE ORGANIC AS WE PRESENT OUR SERVICE TO YOU.

THIS IS A THIS IS GOING TO BE A GREAT HOTEL.

IT BRINGS IN A LOT OF NOT JUST FROM THE APPEARANCE, BUT IT ALSO BRINGS IN A LOT OF CULTURE OF A FULL SERVICE HOTEL, MAINLY IN DOWNTOWN.

THERE'S GOING TO BE THOUSANDS OF PEOPLE.

I MEAN, WE CAN WE CAN ACCOMMODATE UP TO 1500 PEOPLE IN THIS HOTEL IN THE CONVENTION AREAS.

SO THAT WITH THAT SAID, YOU HAVE TO AT CONSTANTLY HAVE TO MAINTAIN A CERTAIN CONSISTENCY.

AND SO WE USE THE WORD ROOTED MODERN RUSTIC IS PRETTY EXPLANATORY FOR WHAT YOU SEE WHEN YOU WHEN YOU WILL SEE THE HOTEL AND IT'S REALLY TIED IN WITH THE WEST TEXAS SURROUNDINGS.

AND YOU'LL SEE THAT ELEMENTS OF, YOU KNOW, LIKE HORSES AND LEATHER AND YOU'LL SEE THAT WHEN YOU WALK, WHEN YOU WALK THE HOTEL.

NOW THE NEXT ONE IS SUPERIOR.

AND SUPERIOR CAN ONLY BE USED WITH SERVICE.

I HAVE KIND OF HAD PEOPLE QUESTION ME, WHY WOULD YOU USE THE WORD SUPERIOR? AND I WILL READ THE DEFINITION TO YOU IN A MINUTE, BUT YOU HAVE TO USE THE WORD SUPERIOR WITH SERVICE BECAUSE THAT'S WHAT WE'RE GOING TO BE PROVIDING.

IF YOU JUST USE SUPERIOR, IT CAN GO SEVERAL WAYS AND I WILL HAVE TO READ THAT TO YOU.

SUPERIOR SERVICES MEANS GUEST SERVICE GOING ABOVE AND BEYOND NORMAL INTERACTIONS.

WITH YOUR GUESTS TO MAKE SURE THAT YOUR CUSTOMER IS HE FEELS THE PERSON FEELS HEARD, APPRECIATED, UNDERSTOOD AND VALUED.

SO THAT'S HOW DEEP IT GOES.

AND I'M HERE TODAY PRESENTING YOU THIS.

AND I ALSO HAVE VIRTUALLY HANDPICKED MY, MY, MY LEADERS IN MY IN MY DEPARTMENTS.

AND THEY HAVE PICKED THEIR STAFF.

AND THERE'S EXTENSIVE TRAINING GOING INTO THIS AS WE PRESENT THIS TO YOU.

WHICH I WILL JUST ADD, OBVIOUSLY THE DIRECT IMPACT.

[00:20:07]

I'M HAVING A LITTLE DIFFICULTY WITH THE MOUSE.

THIS IS AN EXTENSION OF SOMETHING.

I WON'T REALLY TALK TOO MUCH ABOUT THIS, BUT I JUST WANT TO POINT OUT THIS SLIDE TO YOU.

AS I MENTIONED EARLIER IN OUR PRESENTATION, OUR SUCCESS REALLY DEPENDS ON OUR SERVICE TO OUR COMMUNITY AND BUILDING THAT AWARENESS.

A LOT OF PEOPLE HAVE ASKED ME THE QUESTION, WHAT IS FULL SERVICE HOTELS STAND FOR? WHAT DO YOU MEAN BY FULL SERVICE? NOW, FULL SERVICE CAN BE YOU CAN IT'S TANGIBLE BECAUSE YOU CAN ACTUALLY STAND IN A HOTEL AND SEE.

WHERE YOU HAVE THESE ADDITIONAL FOOD AND BEVERAGE OUTLET, YOU HAVE ROOM SERVICE, YOU HAVE THESE AMENITIES THAT YOU CAN ACTUALLY SEE.

BUT BUT THE BIGGER FACTOR, THE BIGGER PICTURE TO THAT IS THE SERVICE BEHIND A FULL SERVICE.

AND A LOT OF PEOPLE WILL ASK, WHY ARE YOU CHARGING SO MUCH FOR COFFEE? MEANWHILE, I CAN GET CHEAPER COFFEE AT A DIFFERENT HOTEL.

IT IS NOT THAT THERE'S A LOT THAT'S PUT BEHIND THAT AND HOW IT'S PRESENTED.

SO I JUST WANTED TO POINT THAT OUT FOR US AND OUR TEAM.

WE ARE ACTIVELY, FROM DAY ONE, BEEN WORKING CLOSELY WITH LOCAL BUSINESSES.

UM, I WOULD SAY THE MOVERS AND SHAKERS OF ABILENE TO CONTINUE TO WORK WITH THE COMMUNITY, TO BE ABLE TO PROVIDE THEM THAT LEARNING CURVE AND THAT KNOWLEDGE BASE OF WHAT A FULL SERVICE HOTEL IS AND WHAT IT BRINGS TO YOU.

AND I CAN TELL YOU THIS RIGHT NOW, THIS IS GOING INTO THE SEVENTH, NINTH MONTH RIGHT NOW.

AND I HAVE SEEN A HUGE CHANGE.

I DON'T STOP TALKING ABOUT IT.

I IF I MAY SAY YACKED MY HEAD OFF TELLING PEOPLE ABOUT WHAT FULL SERVICE IS.

AND I GET A LOT OF QUESTIONS AND I AND WHEN I DO ANSWER THEM, THEY UNDERSTAND.

SO I'M VERY EXCITED ABOUT THIS BECAUSE THAT CHANGES WHAT ABILENE IS GOING TO BE HAVING IN THE MIDST OF DOWNTOWN.

UM, WHEN I THINK OF FULL SERVICE AND THIS IS PROBABLY A VERY RUDIMENTARY DEFINITION, BUT IN MY MIND IT'S YOU OFFER BREAKFAST, LUNCH AND DINNER.

IS THAT WRONG? I MEAN. I MEAN, DO YOU DO THAT? THAT'S NOT. WE DO.

OKAY. WE HAVE A FULL.

WHEN YOU SAY FULL SERVICE, WHAT YOU'RE TRYING TO DO IS YOU'RE TRYING TO MAKE IT OBVIOUS TO YOUR GUEST WITHOUT POINTING IT OUT, THAT WHEN YOU COME IN HERE, WE'VE GOT YOU. ANYTHING YOU NEED, WE'VE GOT YOU.

LET'S START. YOU WANT BREAKFAST? YOU GOT IT. YOU WANT BREAKFAST IN BED? WE GOT IT. SO WE GOT ROOM SERVICE.

DO YOU WANT TO GO TO THE POOL? WE GOT A POOL.

YOU WANT TO GO WORK OUT IN THE GYM? SO ALL OF THESE START COUNTING YOU WANT.

YOU DON'T FEEL LIKE TALKING TO ANYONE.

YOU WANT TO JUST GRAB AND GO? YEAH, GO TO THE MARKETPLACE, GRAB A BOTTLE OF WINE, GRAB A SANDWICH OR COFFEE, WHATEVER FANCIES YOU AND YOU'RE TAKEN CARE OF.

YOU WANT YOUR LAUNDRY DONE, WE'LL DO THAT FOR YOU.

WE'LL SEND THE LAUNDRY, HAVE IT TO YOU BY THE SAME DAY.

YOU WANT AN EVENT, YOU WANT A SMALL MEETING, SET IT UP FOR YOU SO YOU DON'T REALLY HAVE TO GO ANYWHERE ELSE.

OKAY? AND IT'S ALL HOMEGROWN, RIGHT? SO THE MARKETPLACE, FOR EXAMPLE, WE WILL MAKE OUR OWN SANDWICHES AND WE PROVIDE IT TO YOU.

SO IT'S NOT THAT I GOT OUTSIDE SANDWICHES CATERED FROM HERE AND KIND OF PRESENTED IN THERE.

SO. SO THEN THAT BECOMES AN AMBIGUITY AND A QUESTION.

IF ANYONE IS RESPONSIBLE, I AM RESPONSIBLE FOR THAT SANDWICH THAT YOU JUST SAID.

BECAUSE IF IT WAS MADE IN MY KITCHEN.

GOTCHA. YES, MA'AM. ANY QUESTIONS ON THIS? KEEP GOING. THANK YOU.

OUR DEMAND DRIVERS WITHOUT GOING INTO TOO MUCH DETAIL.

WE'VE TALKED ABOUT WHAT OUR MIX OF BUSINESS LOOKS LIKE.

WE HAVE CERTAIN INDUSTRIES THAT HAVE KIND OF POINTED OUT OVER THERE AND JUST KIND OF WORKING CLOSELY WITH THEM.

A LOT OF THESE BUSINESSES HAVE REACHED OUT BY WORD OF MOUTH.

A LOT OF THESE INDUSTRIES HAVE REACHED OUT TO US.

WORD OF MOUTH AND WANTING TO SPEAK TO US.

AND WE'VE GONE TO THEIR OFFICES OR THEY'VE COME INTO MY OFFICE, WHICH USED TO BE A TRAILER AT ONE POINT IN TIME.

AND THEY'VE COME IN THERE AND THEY'VE TALKED TO US AND THEY'VE BEEN VERY EXCITED OF WHAT WE HAVE.

THEN WE START TO DO OUR PART.

WE'VE DONE SOME HARDHAT TOURS.

WE'VE WE'VE DONE TOURS KIND OF, YOU KNOW, OFF AND ON FOR PEOPLE TO SEE AND BUILD THAT EXCITEMENT.

I THINK WE HAVE A PRETTY GOOD HANDLE ON WHAT WE'RE GOING TO WHAT WE ARE WALKING INTO AND WHAT WE ARE PRESENTING TO THE CITY OF ABILENE.

UM, I'VE MADE A NOTE OF SOME OF THE NEW COMPETITIVE SET THAT IS BUILDING IN THERE.

I'M NOT GOING TO READ OFF OF THAT, BUT IF YOU HAVE ANY QUESTIONS, PLEASE DON'T HESITATE TO ANSWER OR TO ASK.

HERE IS A A SLIDE THAT I KIND OF SAT WITH THE CVB AND I ASKED THEM TO GIVE ME SOME DATA AND

[00:25:09]

LADIES AND GENTLEMEN, I HAVE TO SAY THIS TO YOU.

ONE OF THE FIRST THINGS I NOTICED THAT THERE'S PROBABLY SOME DATA THAT'S NOT ON THERE.

UM, AND I SAY THAT IS BECAUSE SOMEONE PICKS UP A PHONE AND SAYS, HEY, I HAVE A CONVENTION THAT I'D LIKE TO BRING IN TO ABILENE.

DO YOU HAVE A CONVENTION HOTEL? AND THE ANSWER IS NO.

BEFORE YOU CAN SPEAK FURTHER, CLICK.

THANK YOU. SO I DO KNOW JUST BY TALKING TO PEOPLE, JUST BY TALKING, SPENDING TIME WITH THE FOLKS THAT WORK THERE HAVE BEEN THERE FOR SO MANY YEARS.

I KNOW THERE'S A LOT OF DATA THAT'S NOT ON THERE AND COMING IN HERE AND YOU KNOW, YOU'RE COMING INTO A NEW TOWN AS EVEN AS ON MY PERSONAL LEVEL, YOU KNOW, TO SEE WHETHER OR NOT THIS HOTEL IS GOING TO WORK OR NOT.

I AM SO EXCITED ABOUT IT BECAUSE I KNOW THAT WE WILL GET A LOT OF BUSINESS.

AND AS WE OPEN THE DOOR AND WE ANNOUNCE THERE WILL BE THOSE PEOPLE WHO'VE BEEN SITTING IN THE STANDS WHO ARE GOING TO START BUILDING AND THEY'RE GOING TO START CALLING.

SO THAT'S KIND OF A REALLY EXCITING ANGLE FOR ME, AS I SAY THIS TO YOU TODAY.

THIS IS. THIS IS A SLIDE.

THAT KIND OF JUST GIVES YOU WHAT OUR MARKETING STRATEGY LOOKS LIKE.

WHAT DO WE DO? TO TO KEEP THAT.

THE CASE WITH THOSE WITH THAT PIE IS HOT AND READY.

THAT'S WHAT'S COMING TO MY MIND RIGHT NOW.

WHERE YOU KNOW THAT, JOHN OR IS THERE ANOTHER SLIDE THAT YOU WANTED TO SHOW? BECAUSE WE JUST HAVE A TITLE SLIDE HERE.

I'M SORRY. THAT'S OKAY.

THERE YOU GO. ALL RIGHT. THAT MAKES MORE SENSE.

I WAS WORRIED THAT WAS OUR MARKETING STRATEGY.

OKAY. SORRY ABOUT THAT.

NO, YOU'RE GOOD. I APOLOGIZE BECAUSE I'M LOOKING LIKE.

AND I CAN'T SEE MY NOTES.

SO I'M LIKE, OH, I'LL HAVE TO WING THIS ONE.

SO THIS IS JUST A QUICK MARKETING STRATEGY.

AGAIN, FOR A LOT OF US, INCLUDING MYSELF, A LOT OF MARKETING MUMBO JUMBO.

BUT I DO KNOW HOW IT WORKS AND I HAVE SEEN IT WORK, WORK.

LADIES AND GENTLEMEN, I'VE SEEN HOW WE PLAN.

WE'VE USED IT AS A FUNNEL.

WE THE TOP FUNNEL JUST TO GIVE YOU TOP MID AND BELOW AND THE BOTTOM, THE TOP FUNNEL HAS TO BE PUSHED A LOT TO BE ABLE TO GET THAT BUSINESS COMING IN TO KEEP THE AWARENESS IN THE MID FUNNEL IT CONTINUES AND THEN THE LOWEST FUNNEL KIND OF WORKS FROM THE PROPERTY LEVEL.

SO LOOKING AT THIS, WE SAY, OKAY, WE'VE GOT TO KEEP OUR FOOT ON THE GAS PEDAL TO A CERTAIN DATE.

AFTER THAT WE CAN BRING IT DOWN BECAUSE WE KNOW WE'VE BUILT THE AWARENESS.

UH, JUST WANTED TO SHARE WITH YOU THE THE TIMELINE OF THE MARKETING TIMELINE.

AGAIN, BROKEN DOWN IN PHASES AND HOW WE WENT INTO FROM STARTING FROM 22 FIRST QUARTER, SECOND QUARTER, AND NOW WE ARE IN JUNE.

AND AS YOU CAN SEE, WE ARE ALREADY WE HAVE A PR COMPANY WE'RE WORKING WITH.

WE PLAN A PHOTOSHOOT AND THE HOTEL OPENS.

AND RIGHT AFTER THAT, YOU KNOW, WE CONTINUE OUR PATH WITH USING THE PUBLIC RELATIONS.

AND JOHN, YOU ALL HAVE HIRED A LOCAL FIRM, ZACHARY, IS THAT CORRECT? ZACHARY YES, VERY GOOD.

SOME OF THE OPENING OFFERS, WHICH IS VERY SELF EXPLANATORY AT THIS POINT IN TIME.

YOU CAN SEE WE DEFINITELY WANT TO PUSH FOR OUR CATERING AND EVENTS AND OUR TRANSIENT MARKETS, WHICH IS LOCAL, WHICH TRANSIENT MARKET IS WHEN PEOPLE CHECK IN WITHOUT ANY GROUP, WITHOUT JUST WANT A ROOM.

SO WE PUSH FOR THAT.

SO FOR THAT REASON WE DEFINITELY SHOW SOME OF OUR OPENING OFFERS AND WE PUBLISH THAT SO THAT PEOPLE CAN KIND OF BUY IN AND COME AND TRY IT OUT. ONCE THEY TRY US OUT, THEY'RE GOING TO BE HERE.

THESE ARE SOME NUMBERS THAT WE HAVE CURRENTLY FROM JUNE THROUGH DECEMBER.

AND AS I'VE BROKEN IT DOWN INTO TWO, SO YOU HAVE THE GROUP CATERING, WHICH IS EVENTS, FOOD AND BEVERAGE AND EVENT SPACE WITH ROOMS. WE HAVE TO BREAK THAT DOWN.

AS I MENTIONED EARLIER, YOU HAVE TO LOOK AT A MINIMUM OF TEN ROOMS TO BE ABLE TO QUALIFY FOR THE FIRST PART THAT YOU'RE LOOKING AT.

AND THEN THE SECOND PART IS BASICALLY THERE COULD BE LESS THAN TEN ROOMS, BUT IT GOES INTO THAT BUCKET.

SO WE KIND OF KEEP AN EYE TO QUALIFY OUR GUESTS WHO COME IN TO STAY WITH US.

AND THIS, LADIES AND GENTLEMEN, IS THE IS OUR SUMMARY THAT WE HAVE FOR WHAT THE NUMBERS LOOK LIKE.

[00:30:03]

BUT I JUST WANT TO STAND HERE AND MAKE MY COMMITMENT TO YOU THAT I HAVE.

MOVED YOU PERSONALLY? WITH MY FAMILY AND I HAVE HIRED PEOPLE FROM SEVERAL CITIES.

I HAVE HIRED PEOPLE FROM HERE, FROM ABILENE.

AND WE ARE HERE TO MAKE THIS BLACK.

THAT CONCLUDES MY PRESENTATION AND IF YOU HAVE ANY QUESTIONS THAT YOU WOULD LIKE TO ASK, I'D BE HAPPY TO ANSWER.

AND I WILL ALSO SAY THIS, THAT IF I DON'T HAVE AN ANSWER, I WILL DEFINITELY FIND AN ANSWER FOR YOU AND I WILL RESPOND TO MR. HANNA AND SO HE CAN SHARE THAT WITH YOU, OR I'LL BE HAPPY TO GIVE YOU MY NUMBER AND PLEASE CALL ME WITH ANY QUESTIONS.

AND I WOULD SAY ON THE AVERAGE DAILY RATE OF 154 IS THAT.

YEAH. AND WE DO THIS.

LAST TIME WE WENT THROUGH HILTON, I WENT THROUGH THIS EXERCISE WITH HIM ON THE I JUST PULLED UP THE HILTON APP AND ENTERED TODAY AS A NIGHT STAY, FOR EXAMPLE.

AND YOU HAVE $156 TO $187 FOR A ROOM NIGHT.

RIGHT NOW, DEPENDING ON WHICH HILTON PRODUCT YOU STAY IN, IN ABILENE, THIS HOTEL WILL BE THE RATE LEADER FOR THE MARKET.

YOU SHOULDN'T HAVE A NIGHT STAY.

THAT'S GOING TO BE LESS THAN WHAT IT OUGHT TO BE.

THE HIGHEST RATE IN TOWN.

COMPETITIVE, BUT BUT DEMAND THE HIGHEST RATE IN TOWN.

AND SO I THINK THAT THE HILTON HAS DONE A GOOD JOB OF BRINGING THE AVERAGE DAILY RATE UP FROM THE INITIAL VERSION OF THIS DISCUSSION THAT WE HAD WITH THEM.

I DO ALSO THINK THAT JOHN'S RIGHT THAT WE WILL SEE WE WILL SEE A BETTER PERFORMANCE DURING THE STUB YEAR THAN WHAT WE'RE ANTICIPATING.

BUT WE WANT TO BE REALISTIC.

AND PART OF THIS PART OF THIS IS MAKING SURE THAT WE ARE TRANSPARENT WITH THE NUMBERS AND AND WE'RE NOT SANDBAGGING OR OVERINFLATING THINGS AS WELL.

SO I'M CONFIDENT THAT JOHN IS CORRECT THAT HILTON IS GOING TO BE ABLE TO HAVE A BETTER PERFORMANCE THAN THAT SUMMARY SUGGESTS FOR THE STUB YEAR.

AND THE PROOF'S IN THE PUDDING.

SO, JOHN, GO OUT AND SELL ROOM NIGHTS AND CONVENTION SPACE.

OKAY, SIR. THAT'S RIGHT.

SO ON YOUR HILTON HONORS AND I'M A PART OF THE HILTON HONORS, THIS IS THE NETWORK OF OF.

OF HOTELS THAT ARE A PART OF THE HILTON HONORS PROGRAM.

IS THAT CORRECT? YES, ABSOLUTELY.

SO IF YOU'RE ACCUMULATING HONORS POINTS, I GUESS IT'S ALL BY POINTS.

ANY OF THESE, INCLUDING HAMPTON INN AND HILTON, DOUBLETREE, ETCETERA, EMBASSY SUITES, ETCETERA, ARE ALL LEADING TOWARD THOSE POINT SYSTEMS, IS THAT CORRECT? YES, SIR. EVERY POINT IS HONORED.

AND YOU ACTUALLY GET YOU GET POINTS FOR THE INCIDENTALS, THE SPA THAT I MENTIONED.

SO YOU GET POINTS FOR THAT.

AND A LOT OF PEOPLE DON'T KNOW THIS, BUT IF YOU USE LYFT.

MHM. JUST TO KIND OF GET A RIDE.

YOU GET POINTS FOR THAT AS WELL.

UM, THERE'S MORE HOTELS THAT HAVE BEEN, MORE BRANDS THAT HAVE BEEN ADDED.

SO NOW WE'RE UP TO 19 BRANDS OF HOTELS.

I THINK THIS HELPS.

MY THOUGHT IS THIS HELPS PEOPLE.

THAT ARE FROM OTHER CITIES COMING HERE FOR SPECIAL EVENTS AND GRADUATIONS AND HOMECOMINGS AND ALL THOSE THINGS THAT IF THEY'VE ACCUMULATED ANYTHING, MAYBE THEY'VE BEEN USING SOMETHING ELSE.

BUT THEY COULD SAY, I'M GONNA USE MY POINTS HERE AT THIS DOUBLETREE AND THAT WOULD BE GOOD.

NORM ONE OF THE REASONS WHY WE WANTED TO PARTNER WITH HILTON WAS BECAUSE OF THEIR HONORS PROGRAM.

THEIR. THEIR NETWORK OF REWARDS FOR.

FOR FREQUENT FLIERS, FOR LACK OF A BETTER TERM.

RIGHT. IT'S MY OPINION IT'S ONE OF THE BEST IN THE INDUSTRY.

AND THEY THEY DEMAND BRAND LOYALTY BECAUSE THEY OFFER GREAT, GREAT REWARDS FOR LOYAL CUSTOMERS.

HILTON IS BRINGING THAT TO THE TABLE AS PART OF ONE OF THE HILTON PRODUCTS.

AND WE WILL EXPECT A NUMBER OF HILTON HONOR MEMBERS TO STAY WITH US BECAUSE IT IS A BRAND AND AN OPPORTUNITY IN OUR MARKET THAT HASN'T EXISTED BEFORE.

AND AS AS WE HAVE OUR DIAMOND MEMBERS AND OUR OUR GOLD MEMBERS, THEY COME AND STAY IN THESE HOTELS, THEY TEND TO BRING MORE BUSINESS BECAUSE NOW THEY'VE BEEN THEY'VE BEEN HERE, THEY'VE STAYED AT A HOTEL.

SO IT BRINGS A LOT MORE TO THE PROPERTY ITSELF.

AS THEY GO BACK AND TALK TO THEIR TEAMS. OKAY. DID YOU HAVE A QUESTION? I DID. AND IT'S REAL QUICK, JOHN.

IT WAS THE SLIDE BEFORE THIS.

THERE WAS AN EBB TO SOMETHING.

YOU WENT SO FAST. WHAT IS ANY DA? I KNOW IT'S THE EARNINGS EARNINGS BEFORE.

I KNOW THIS ONE IS AND IS BEFORE IT IS.

SO IN LAYMAN'S TERMS, IT'S.

YEAH. OKAY. I JUST.

IT WENT SO FAST, AND I'M SO SORRY ABOUT THAT.

[00:35:01]

OKAY. IF I COULD, I'D LIKE TO MAKE TWO POINTS.

YEP. FAIR AMOUNT OF RESEARCH ON.

SO ON SOME GIVEN NIGHTS WE WERE LOOKING AT SOME.

OVER 700. MHM.

YOU NEED THE MEETING SPACE AND RESTAURANTS TO PAY FOR THE KITCHEN.

BUT ON THE AVERAGE. SOME HOTELS.

WELL OVER $200 A NIGHT.

WHY? IT OCCUPIED 60% OF YOUR.

MM. AND THAT'S WHAT WE WERE SEEING.

SO EVEN THOUGH WE'RE LOOKING AT 150.

IT'S JUST. BREAKING UP AS WELL.

AND SO DOES JOHN. SECRETARY OFFERS.

YES. YEAH. CAUSE TRIAL.

JUST COME TRIAL.

YEAH.

BUT NOT ENOUGH TO PRICE YOURSELVES OUT.

CORRECT. WE WON'T PRICE OURSELVES OUT.

PRICE OURSELVES NOW. SO THAT'S WHERE IT GETS BACK TO THE REV.

EVALUATE A HOTEL ON OCCUPANCY.

IF YOU TOLD ME. OCCUPANCY.

MHM. YEAH.

$5,000. CAN YOU COME BACK AND SAY NO JEFF.

THAT'S WE NEED.

YEAH. WE NEED OCCUPANCY.

FILL YOUR HOTEL WITH 99.

YEAH. SO WHEN YOU BLEND OCCUPANCY IN THE RATE TO THE RED PART, THAT'S THE.

BUSINESS AND GROUPS LOCAL NEGOTIATED OR RECEIVED THREE WEEKS.

YES. AND I JUST WANTED TO ADD SOMETHING QUICKLY.

SO WHEN WE OPENED HOTELS, HILTON DOES IT'S SLIGHTLY DIFFERENT.

WE OPEN A HOTEL. WE DO NOT OPEN FROM THE DAY ONE.

WE START MAKING RESERVATIONS THREE MONTHS AHEAD BECAUSE WE WANT TO MAKE SURE THAT YOUR EXPERIENCE AS A DIAMOND MEMBER COMING IN THERE, YOU DON'T GET TOLD AT THE LAST MINUTE LIKE, OH, SORRY, YOU KNOW, WE'RE GOING TO HAVE TO SEND YOU SOMEWHERE ELSE.

SO WE WANT TO MAKE SURE THAT THAT IS A SLAM DUNK YOU ARE GOING TO OPEN ON THAT DAY.

SO WE GO THREE MONTHS AHEAD.

AS OF NOW, WE ARE DOING A PRESALE IN AUGUST.

AUGUST 15TH IS THE DATE THAT YOU CAN MAKE A RESERVATION.

IF YOU WERE TO LOOK UP RIGHT NOW, YOU ALREADY WE ARE ALREADY SELLING A $209 TO START WITH.

RIGHT. SO THAT'S LIKE OUR BASE PRICE THAT WE'RE GETTING AND WE'RE GETTING RESERVATIONS ON THAT.

AS SOON AS THE HOTEL GETS CLOSER, WE KNOW LIKE, HEY, THIS IS DEFINITELY A, YOU KNOW, A SURE SHOT.

WE OPEN IT UP AND WE WILL SEE THAT PEOPLE WILL START MAKING RESERVATIONS ON THAT AND THAT WILL CREATE DEMAND.

AND AS JEFF SAID, THAT AGAIN, GIVES US THE EDGE OF TO BE ABLE TO GET THOSE RATES AND AS REPRESENTATIVE, YOUR REPRESENTATIVE FOR THE OWNERSHIP.

YEAH, RIGHT.

SO, YES.

AND AS WE GET CLOSER, THAT WINDOW WILL.

BUT TO JOHN'S POINT, WE WANT TO MAKE SURE THAT THE EXPERIENCE.

ONE TIME. YES.

YES, SIR. YEAH.

THANK YOU SO MUCH. THANK YOU.

BECAUSE WHAT WE'RE ASKING AGAIN, THE BOARD TO IF THERE'S NO OTHER QUESTIONS, I GUESS THE ONLY QUESTION I HAVE IS, IS THERE ANY OPTION TO REVISE THESE BUDGET SOMEWHERE IF SOMETHING UNEXPECTED HAPPENS OR.

ABSOLUTELY. IF THERE'S A MATERIAL CHANGE OF FACT, THERE'S ALWAYS OPPORTUNITY TO CALL A BOARD MEETING AND AND TAKE AND AMEND SOMETHING.

[00:40:06]

AND I THINK YOU'RE GOING TO GET THAT OPPORTUNITY IN SOME DEGREE WHEN WE ADOPT THE CORPORATE BUDGET, WHICH WILL BE AT A FUTURE MEETING BETWEEN NOW AND AND THE END OF THE END OF OR FIRST PART OF OCTOBER.

SO THERE MAY BE AN OPPORTUNITY TO TAKE ANOTHER STAB AT IT.

BUT THIS IS THIS REALLY IS THEIR BEST INITIAL UNDERSTANDING OF WHAT THEIR PNL MIGHT LOOK LIKE FOR THIS YEAR.

JEFF, IS THAT ACCURATE? CORRECT. WITH EACH MONTH.

THANK YOU FOR FOR A NEW OPENING.

MHM. YEAH. GOOD FULL SERVICE HOTEL DOWNTOWN.

THERE IS NO HISTORY FOR THE CITY.

LARGE PART. BEST EDUCATED.

MANSION. IT WILL BE A COMPARISON TO THE BUDGET.

YES. THANK YOU FOR SAYING THAT.

AND SO. WE FORECAST.

THANK YOU. THANK YOU, PAUL.

GOOD QUESTION. YES.

SO WHAT WE'RE ASKING THE BOARD TO DO TODAY AND WANT TO BE CLEAR ON THIS IS NOT APPROVE THE ANNUAL CORPORATE BUDGET BECAUSE THERE'S MORE COMPONENTS TO THAT THAT WE'RE BRINGING IN AT A LATER DATE. WE'RE ASKING YOU ALL TO TO ADOPT OR APPROVE NOW THAT YOU RECEIVED IT, THE THE HILTON'S HOTEL PORTION OF THE BUDGET SO THAT THEY CAN MOVE FORWARD WITH OPERATIONS AND OPEN THE HOTEL.

AND IS THAT THE NUMBERS THAT WERE ALL ON THAT ONE PAGE? YES, SIR. THAT'S THE PNL.

GO BACK TO THAT PAGE JUST TO CLARIFY THAT.

THAT ONE. SO WHAT WE'RE DOING TODAY IS APPROVING THESE NUMBERS AS THE INITIAL ANNUAL CORPORATE BUDGET.

THAT'S CORRECT. $5.3 MILLION, NOT THE INITIAL CORPORATE BUDGET, BUT THE INITIAL HILTON HOTEL BUDGET, 5.3 REVENUE AND 5.3 IN OPERATING EXPENSES WITH A NET INCOME OF A -$145,894, WITH THE UNDERSTANDING THAT WE DO HAVE THE CAPITAL TO COVER THAT.

AND SO YOU ARE ADOPTING A BALANCED BUDGET.

IT'S JUST NOT REFLECTED HERE IN THIS SHEET.

AND IT WOULD BE EXPECTED.

AND I AGREE WITH YOU TOTALLY THAT YOUR FIRST YEAR START UP IS GOING TO BECAUSE ON DAY ONE, YOU'RE NOT GOING TO HAVE EVEN, YOU KNOW, 75% OR 50%.

I MEAN, IT'S IT'S A PROCESS.

I'M GLAD I'M NOT IN THE HOTEL BUSINESS BECAUSE I'D WORRY I'D WORRY ABOUT THOSE THINGS EVERY NIGHT.

WE DIDN'T WE DIDN'T SELL OUT TODAY.

YOU KNOW, I GUESS YOU STAY IN A HOTEL AND DON'T THINK, YEAH, YOU LOSE.

YEAH. I'M LIKE, I'M DONE PLUCKING MY HAIR.

I'M JUST GOING TO SHAVE IT. YEAH, I JUST HAVE A COMMENT, REALLY.

YOU KNOW, I LOOK AT THE PROJECTION AND I THINK THESE ARE CONSERVATIVE NUMBERS.

IF THE BOTTOM LINE, IF THE NET INCOME WAS IN THE BLACK, I'D I'D RAISE AN EYEBROW AND ASK WHY I THINK ANY REASONABLE PERSON WOULD EXPECT TO BE IN THE RED AS YOU RAMP UP THEN YOU WOULD YOU WOULD WANT TO BE IN THE BLACK.

I MEAN, THAT'S THE EXPECTATION.

SO I THINK IT'S IT'S A GREAT THAT WE HAVE ALLOCATED SOME WORKING CAPITAL TO GET US OVER THE HUMP.

I THINK THAT WAS SMART.

SO I THINK THIS IS A REASONABLE CONSERVATIVE ESTIMATE, JUST MY INITIAL REACTION OF THAT.

SO I JUST WANTED TO MENTION THAT.

THANK YOU, JESSE. I DID HAVE A QUESTION OR A COMMENT, AND THAT IS ONCE YOU SEE IT KIND OF GOES TO D'S POINT ABOUT PRICING YOURSELVES OUT OR WHATEVER THE LIKE THE THE BREAKFAST BUFFET OR SOMETHING LIKE THAT.

IF YOU SEE THAT WHATEVER PRICE YOU NORMALLY DO ISN'T GOING TO FLY HERE, DO YOU EVER ADJUST IT? AND THE REASON I'M ASKING YOU IS I WAS JUST EATING DINNER WITH SOMEBODY AND THEY SAID, HEY, THEY'RE GOING TO YOU KNOW, WE'RE TRYING TO GET A FAMILY REUNION IN 2024. WE'RE TALKING TO THE HILTON AND MAN, THEY'RE GOING TO CHARGE AN ARM AND A LEG FOR THE BREAKFAST BUFFET.

EVEN THE CONTINENTAL.

AND I AND I THOUGHT, WELL, I WONDER IF YOU EVER ADJUST IT IF THAT'S IF IF YOU GET A LOT OF THAT, YOU KNOW.

WELL, WE'RE NOT GOING TO WE'RE NOT GOING TO DO THAT.

WE'RE GOING TO STAY IN THE HOTEL, BUT WE'RE NOT GOING TO DO THE TRY THE BREAKFAST STUFF.

YOU KNOW, MA'AM, IN OUR BUSINESS, WE BEING IN HOSPITALITY AND PROVIDING THE SERVICE THAT WE DO AND WE PROMISE TO WE DEFINITELY WORK WITH EVERY ALL OF OUR GUESTS.

WE WORK WITH THEM. WE SEE THERE'S CERTAIN TIMES, LIKE IN ANY BUSINESS, EVERY BUSINESS MAN SITTING OR BUSINESS PERSON SITTING OVER HERE WOULD SEE THAT THERE'S A CERTAIN NUMBER THAT

[00:45:01]

AND WE I'LL BE HONEST WITH YOU, SOMETIMES WE'LL SAY THIS TIME WE CAN DO IT BECAUSE WE'LL TAKE THAT JUST TO GET YOU IN.

AND THE NEXT TIME YOU YOURSELF WILL COME AND SAY, YOU KNOW WHAT? HERE YOU ARE. YEAH. BECAUSE.

BECAUSE YOU SEE THAT AND I'VE DONE THIS.

I'M NOT JUST SAYING IT FOR THE HECK OF SAYING IT.

I'VE SEEN THIS. PEOPLE SAY, HAD YOU CHARGED ME THAT I WOULD HAVE PAID YOU THAT? SO YEAH, THAT'S WHAT WE KIND OF.

IF I'VE ANSWERED YOUR QUESTION.

HIS KEY WORD THERE WAS CLOSER.

THERE'S A LOT TO DO WITH TIME.

YEAH. SO IF YOU'RE LOOKING FOR 24, 25.

YEAH, I'M GOING TO SHOW YOU. OKAY.

WE'RE NOT GOING TO BLOCK.

FAMILY REUNION. MHM.

WE HAVE AN OPPORTUNITY FOR A THREE DAY ASSOCIATION.

GOTCHA. RIGHT. OKAY.

AND SO MANY SMALL COMMUNITIES.

BUILD A NICE HOTEL AND YOU'VE GOT THE QUILTING BEES IN THERE AND YOU'VE GOT THE GUN AND KNIFE SHOWS.

THEY'RE ALL LOCAL. THEY DON'T USE ROOMS. YEAH, YOU GOT THOSE TYPES OF.

THAT PREVENT THE HOTEL.

ASSOCIATIONS ARE.

WITHIN 30 DAYS IF YOU ASK IF NOTHING'S ON THE BOOKS.

YEAH, I SEE.

REPA REPA FOOD BEVERAGE.

YEAH. SO, ROBERT, ARE WE NEEDING A MOTION ON THESE NUMBERS, TOO, TO MAKE THIS WORK? IT'S EXACTLY RIGHT, NORM.

SO I GUESS THE OTHER QUESTION I HAVE I MEAN, I SEE THE NUMBERS FOR THE OPERATING EXPENSES, BUT I DON'T SEE THE BREAKDOWN TO SEE.

OKAY, WHAT WHERE DOES THESE NUMBERS COME FROM? YOU KNOW, JEFF, YOU WANT TO TALK ABOUT THAT? OKAY. AS A PUBLIC ENTITY.

ASSET MANAGEMENT. I LIKE THAT.

I WON'T TELL YOU ABOUT THE NEW GROUPS THAT ARE.

PUBLIC FORUM. ALL OF OUR COMPETITORS ARE IN THE SAME ROOM.

WE'RE GOING TO STEAL IT. SO.

CONDENSE THE INFORMATION YOU NEED TO MAKE THE APPROVALS.

BUT REST ASSURED.

HEY, I REVIEWED IT BEFORE ROBERT SET IN ON THE TEAM CALL.

ACTUALLY, HILTON CAME TO OUR OFFICE.

ROBERT. GREAT DETAIL.

IT WAS A THREE HOUR MEETING. IT WAS A THREE HOUR MEETING.

THAT'S RIGHT. SO I GRILLED HIM ON THAT.

I HAD ALREADY RUN.

FULL SERVICE HOTEL. CONVENTION CENTER HOTELS, THEY OPERATE A LITTLE DIFFERENTLY.

SO I COMPARED BOTH.

AND THEN I. SLIMMING IT DOWN A LITTLE BIT MORE.

GREAT. GEOGRAPHY.

SO I HAD ALREADY DONE THAT BEFORE THAT BUDGET.

I WASN'T PLEASED WITH IT AND WENT BACK TO HILTON.

RED. NUMBER TWO, THE SMALLER.

GOING THROUGH THAT. YEAH.

YEAH. THANK YOU. SO WE'RE READY TO MOVE ON THIS.

IS THAT CORRECT, MR. HANNAN? THERE ARE NO FURTHER QUESTIONS.

YES, SIR. SO DO YOU ARE THERE ANY OTHER QUESTIONS OF THE BOARD ON THE BUDGET THAT'S BEFORE US? ON THE MATTER OF FACT, ON THE SCREEN.

NOT. I WOULD ASK FOR A MOTION AND A SECOND TO ACCEPT THIS ANNUAL CORPORATE BUDGET FOR THE DOWNTOWN HOTEL DEVELOPMENT CORPORATION. I MOVED.

I HAVE A MOTION BY PAUL FALATI.

DO I HAVE A SECOND? SECOND. I HAVE A SECOND BY DR.

HARPER. IS THERE ANY OTHER COMMENTS? SEEING NONE. ALL IN FAVOR.

SAY AYE. AYE.

AYE. ANY OPPOSED? THE MOTION PASSES AND THE BUDGET IS ACCEPTED AS PRESENTED.

THANK YOU, MAYOR. WE NOW MOVE TO ITEM NUMBER SIX, AND THAT'S AN UPDATE FROM THE ASSET MANAGER.

[6. Receive an Update from the Asset Manager]

HOWEVER, YOU KNOW THAT I'VE BEEN WORKING IN THE BACKGROUND ON BUDGETS.

ALL THE DELIVERIES TO CONSTRUCTION THROUGHOUT THE PROCESS.

WE WILL RECESS AND TAKE A TOUR OF THE HOTEL AND WE GOT BOXED LUNCHES PROVIDED AFTER THAT.

YOU'LL SEE THE PROGRESS OF THE HOTEL.

SO FROM THIS PERSPECTIVE, I'VE BEEN FOCUSING ON INSURANCE.

SEVERAL ITEMS AND BUDGETARY ITEMS. AND NINE MONTHS AGO.

NARRATIVE. HE'S REALLY COOL TOGETHER.

[00:50:07]

WE WILL SEE IN THE IMMEDIATE NEAR FUTURE.

YEAH. FOR CONSTRUCTION.

GOING ON TODAY. AND YOU.

SEVEN TRUCKS TODAY, 79 TRUCKS YESTERDAY, SEVEN SEVEN TODAY, ON WEDNESDAY.

DO NOT GO INTO THE BALLROOM.

MAYBE YOU SHOULD YOU SHOULD HAVE DONE THIS FOR MANY YEARS.

FAST. IT COMES TOGETHER THE LAST 72 OR 3 DAYS BEFORE OPENING.

YOU LOOK AT IT AND. REALLY? THEY COME TOGETHER. GOING TO SEE TODAY ORGANIZED CHAOS WITH ABOUT 5 OR 10 TEAMS, PLUS ALL THE TRADES THAT ARE INVOLVED.

IT'S NOT STRAIGHT.

THIS IS AN INSTALL, RIGHT? IN THAT REGARD. SO THE.

CLOSET SPACE.

MRS. YEAH.

SO IT KIND OF. A HITCH IN OUR WIGGLE THERE, BUT OTHERWISE THINGS SEEM TO BE MOVING ON WELL.

BECAUSE I WAS DRIVING. JOHN IS RECEIVING IS REFERRED TO AS.

LIKE SHAMPOO.

COFFEES AND LINEN, NOT FURNITURE.

THOSE, I THINK ARE COMING LATER.

THAT HAS BEEN MY ROLE IN THE BACKGROUND.

MM. ANY QUESTIONS? I'M HAPPY TO ANSWER.

IT'S BEEN A FUN PROCESS.

SO IS THE FIRST TIME SOMEBODY CAN SPEND THE NIGHT IN THE HOTEL.

JUNE 28TH.

JUNE? JUNE.

ARE WE ALLOWED TO SAY THIS? JUNE? OKAY. JUNE, JUNE 27TH.

HILTON REPRESENTATIVES ARE COMING AND THEY WILL BE STAYING AT THE HOTEL.

AND WE ARE GOING TO WORK TO GET THIS BOARD ROOM NIGHT AT THE HOTEL AS WELL.

BUT THAT WON'T HAPPEN ON JUNE 27TH.

IT'LL HAPPEN SOMETIME AFTER THAT FACT.

AND ONCE THOSE NIGHTS ARE AVAILABLE AND JOHN AND I ARE WORKING ON THAT NOW, WE'LL LET YOU ALL KNOW SO YOU CAN COORDINATE WITH YOUR SCHEDULE.

BUT I WOULD I THINK IT'S IMPORTANT FOR YOU ALL TO SEE THE PRODUCT THAT YOU'VE BEEN A PART OF AND TO BE ABLE TO EXPERIENCE IT.

YEAH. YOU JUST POINTED OUT THE ONLY CAVEAT THAT I WAS GOING TO SAY IS THAT HILTON BRINGS IN TASK FORCE MEMBERS FROM AROUND.

THEY TRY TO KEEP IT REGIONAL FOR EXPENSES.

THEY WILL BE STAYING IN THE HOTEL.

WHEN DO THEY START? THEY? YEAH, THEY START STAYING FROM THE 14TH OF JUNE.

AND THE IDEA IS TO KIND OF GET TO THE OPENING AND THEN CONTINUE TO ASSIST THE STAFF AND KIND OF BE THAT PERSON IN THE BACK ROOMS. LIKE RIGHT NOW I HAVE SOMEONE WHO'S OVERSEEING ALL THIS WHILE I'M HERE.

I'M DOING OTHER TASKS THAT I NEED TO DO.

SO THERE'S A TASK FORCE THAT IS ACTUALLY WORKING RIGHT NOW.

AND SO THEY THEY CONTINUE THAT PROCESS AND THEN A WHOLE TEAM COMES IN ON THE 14TH AND THEY KIND OF GO WITH THE 20TH AND SPEND ANOTHER ANOTHER WEEK TO SETTLE DOWN EVERYONE, BECAUSE THERE'S A LOT OF PROCESSES THAT KIND OF GET MISSING ON ROOMS AVAILABLE FOR TASK.

SO WE MAKE THOSE AVAILABLE.

SO SOME PEOPLE. WEEK.

MM HMM. SO SOMEBODY THAT'S JUST COMING IN TO ABILENE AND SAID, HEY, I'VE GOT A DOUBLE TREE.

THEY'VE GOT A DOUBLE TREE.

I'M GOING TO SEE IF I CAN SPEND THE NIGHT THERE.

OKAY. SO, ROBERT, HERE'S A QUESTION FOR YOU, AND I THINK I'LL SPEAK FOR THE THE BOARD.

I HEARD YOU SAY THAT WE WILL HAVE ANOTHER MEETING SOMETIME TO RECEIVE THIS BUDGET.

AND THAT WILL.

PERHAPS BE LIKE IN THE FALL.

DID I HEAR YOU SAY THAT? AS SOON AS I HAVE ALL THE NUMBERS ON THE WORKING CAPITAL REQUIREMENTS, WE WILL BEGIN TO PUT THAT TOGETHER.

[00:55:02]

BUT I'D ALSO LIKE TO USE IT AS AN OPPORTUNITY TO SET A REGULAR RECURRING QUARTERLY MEETING DATE GOING FORWARD.

AND THAT MAY BE WHERE YOU'RE HEADED WITH THAT NORM.

I'M NOT SURE. SO.

THIS IS A.

QUESTION. SO WHAT DID WE GET OURSELVES INTO? YOU'RE LAUGHING AND I'M NOT.

NO, I'M LIGHT HEARTED ABOUT THAT.

SO THE FIVE OF US HAVE SIGNED ON.

WE WERE APPOINTED BY THE COUNCIL TO BE THE HOTEL.

THE ABILENE CONVENTION CENTER, DOWNTOWN HOTEL DEVELOPMENT CORPORATION, OR SOMETHING LIKE THAT.

IT SOUNDS IMPRESSIVE WHEN YOU SAY IT.

I TYPE IT ON ALMOST A LOT OF FORMS, SIR.

SO AS THIS BOARD AND WE HAVE WE HAVE DONE EVERYTHING TO GET IT STARTED, WE'RE NOW ABOUT TO OPEN IT.

SO IS IS IT IN PRACTICALITY? IS THIS BOARD A PERPETUAL BOARD FOR THE FUTURE? QUESTION SOME LONG TERM FUTURE.

YEAH. AS LONG AS THE ABILENE CONVENTION CENTER HOTEL DEVELOPMENT CORPORATION EXISTS, THIS BOARD IS PART OF THAT.

BY LAW, YOU'RE REQUIRED TO HAVE ONE ANNUAL MEETING.

AND I THINK THAT AS THE HOTEL GETS STARTED AND AS THE PUBLIC INTEREST PICKS UP, MEETING ON A QUARTERLY BASIS IS PROBABLY APPROPRIATE FOR THE FIRST YEAR. WE MAY TONE THAT BACK, YOU KNOW, AS AS THE TIME REQUIRES AND AS THE HOTEL CONTINUES TO OPERATE AND THERE'S LESS NEEDS, LESS NEED TO APPROVE THINGS. BUT.

THIS IS A LONG TERM SERVICE COMMITMENT.

IF YOU WANT IT TO BE IF IF YOU AND I, ANYBODY, ANY BOARD MEMBER LOOKS AT THIS AND SAYS, LOOK, I'VE I'VE DONE MY TOUR.

YOU KNOW, THAT WOULD BE GOOD TO KNOW.

AND WE WILL WE WILL WORK TO IDENTIFY A REPLACEMENT AS WELL.

SO IF SOMEONE ON THIS BOARD SAID, I'M NOT ABLE TO MEET ALL THE REQUIREMENTS AND I WANT TO I WANT TO STEP DOWN.

THEN THE CITY COUNCIL WOULD WOULD APPOINT A NEW MEMBER.

THAT'S RIGHT. THAT'S EXACTLY RIGHT.

BUT BUT YOU'RE ANTICIPATING THAT THE BOARD AS AN ENTITY WILL LAST A LONG TIME.

IT'LL LAST AS LONG AS THE HOTEL IS PUBLICLY OWNED.

YES. OKAY. AND IF YOU WERE SAYING WHAT THAT LOOKS LIKE TODAY, HOW MANY YEARS IS THAT? THE DEBT IS 30 YEAR DEBT ISSUANCE.

SO I'D BE OVER 100 YEARS OLD.

NORM, I'M NOT. I WON'T BE HERE FOR THE LIFE.

I'M BETTING ON YOU TO BE HERE, BUDDY.

SO THE CONCEPT THE COUNCIL HAS EXPRESSED AND THAT CAN CHANGE ANYTIME COUNCIL WANTS TO, RIGHT.

BUT THE CONCEPT IS ONCE THE ONCE THE DEBT IS IS RETIRED, THAT THE HOTEL WOULD BE SOLD TO PRIVATE OWNERSHIP.

THAT COULD HAPPEN IN THEORY BASED ON THE PERFORMANCE OF THE HOTEL SOONER THAN 30 YEARS.

BUT MY CRYSTAL BALL IS NOT GOOD ENOUGH TO TELL YOU WHEN THAT WOULD HAPPEN.

IT'S. IT'S A 30.

THIS BOARD WILL BE AROUND FOR AT LEAST 30 YEARS.

I SAY ALL THAT TO PUT IN PERSPECTIVE.

YES, SIR. THE FIVE OF US THAT WE WE HAVE BEEN A PART OF THE START UP.

WE'RE NOW HERE FOR THE OPENING.

AND THE FUTURE IS WHAT WE ALL CAN DETERMINE.

RIGHT. MAKES SENSE FOR EACH OF US INDIVIDUALLY.

THAT'S RIGHT. AND LET ME JUST SAY, WE WOULDN'T BE HERE WITHOUT THE FIVE OF YOU ALL.

IT JUST WOULDN'T HAVE BEEN ABLE TO HAPPEN BECAUSE OF THE APPROVAL PROCESSES THAT WERE NECESSARY.

THE QUESTIONS THAT YOU ALL HAVE ASKED.

YOU ALL HAVE CONSUMED EVERYTHING WE'VE GIVEN YOU, LIKE YOU'RE DRINKING OUT OF A FIRE HOSE.

AND I APPRECIATE THE FACT THAT YOU ALL ARE WITH US STILL THROUGH THIS PROCESS, BECAUSE I KNOW IT IS BEEN A LONG REALLY 24 MONTHS.

IT'S BEEN IT'S BEEN LONG.

BUT I WANT TO COMMEND.

I'VE BEEN VERY PLEASED TO KNOW THAT WE HAD FULL ATTENDANCE.

YES, SIR. ALMOST EVERY MEETING OVER THE LAST TWO YEARS.

I KNOW I MISSED ONE OF THE MEETINGS MYSELF BEING OUT OF TOWN, BUT I THINK WE'VE SHOWN GREAT SUPPORT.

AND FOR THAT, I COMMEND ALL OF US ON THE BOARD FOR HELPING GET THIS STARTED.

IT TAKES IT TAKES PEOPLE THAT ARE DEDICATED TO MAKE IT HAPPEN.

AND YOU HAD I KNOW THAT YOU PERHAPS DON'T SEE YOURSELF BEING ON THIS BOARD FOR 30 MORE YEARS, BUT IT COULD HAPPEN.

YES, BUT ALL THAT BEING SAID, I THINK WE'RE AT A GOOD POINT.

THAT'S RIGHT. YEAH.

SO DO I.

HEARD WE'RE GOING TO TAKE A TOUR, BUT WILL THAT CONTINUE TO BE A PART OF THIS MEETING? IT WILL BE A PUBLIC MEETING BECAUSE THE WHOLE BOARD IS PRESENT.

YOU'RE DOING PUBLIC BUSINESS AT THAT PROCESS.

CAN WE DISMISS ON SITE? YES, SIR. NEW HOTEL? YES, SIR. OKAY, SO I'M JUST GOING TO RECESS THE BOARD.

[01:00:01]

OKAY. THIS IS A SIDEBAR QUESTION.

YES, MA'AM. YOU KNOW, WE HAVE A PROBLEM WITH THE HOMELESS.

ARE WE GOING TO DO FOR THE HOTEL? I MEAN, IS THERE GOING TO BE.

SO THE HOTEL PROPERTY WILL BE SOMETHING THAT WE HAVE TO MANAGE, JUST LIKE WE MANAGE IT NOW.

MENTOR PARK RECENTLY WAS INUNDATED WITH A GROUP OF HOMELESS AND WE HAD TO CLOSE THE PARK FOR TO MAKE SOME NEEDED REPAIRS AND ALSO REMOVE.

WE REMOVED BENCHES AND TABLES SURFACES.

THEY ARE NOT THERE ANYMORE.

THEY'VE MOVED. THEY'VE MOVED TO OTHER PLACES.

YOU CAN'T CRIMINALIZE HOMELESSNESS, NOR WOULD WE REALLY WANT TO.

SOME OF THE MEN AND WOMEN WHO WHO ARE IN THAT LIFESTYLE REALLY CHOOSE TO BE THERE.

SOME OF THEM DON'T. SOME OF THEM HAVE MENTAL HEALTH CONCERNS.

SOME OF THEM HAVE DRUG CONCERNS.

AND IT'S SOMETHING THAT OVER IN AMERICA YOU HAVE SEEN SINCE THE PANDEMIC.

HOMELESS POPULATIONS IN CITIES INCREASED 25 TO 35%, DEPENDING ON THE COMMUNITY YOU'RE LIVING IN.

IT IS A REAL PROBLEM.

AND HOW WE HANDLE IT IN ABILENE IS WE HAVE A NUMBER OF COMBINED JOINT TASK FORCE WITH THE POLICE, FIRE DEPARTMENT AND MENTAL HEALTH EXPERTS WITH BETTY HARDWICK.

AND WHEN WE HAVE CONCERN AREAS, WE SEND THESE TEAMS IN AND THEY HELP ADDRESS THE ROOT CAUSES OF OF THE SITUATION.

SOMETIMES WE JUST INVITE THEM TO MOVE ALONG AND THEY DO.

SOMETIMES THEY SOMETIMES THEY DON'T.

AND WE HAVE TO EXPLORE OTHER OPPORTUNITIES, WHICH WE DO.

BUT ONE OF THE STRENGTHS OF ABILENE IS THAT WE TREAT PEOPLE WITH DIGNITY, COURTESY AND RESPECT AS A COMMUNITY.

AND I THINK THAT WE WILL CONTINUE TO TRY TO DO THAT.

I DO NOT ANTICIPATE SIGNIFICANT INUNDATION OF HOMELESS ON ON THIS PROPERTY.

IF WE HAVE A PROBLEM, WE WILL WE WILL ADDRESS IT QUICKLY WITH DIGNITY, COURTESY AND RESPECT.

BUT WE WILL NOT ALLOW THIS AREA TO BECOME A HOMELESS ENCAMPMENT.

WELL, AND I'VE HEARD THE SAME THING TO THE FOR THE ENTIRE DOWNTOWN REVIVAL.

THAT'S CORRECT. PROJECT IS THAT HOW DO YOU REALLY GET PEOPLE COMING OUT THERE? AND I KNOW IN BATON ROUGE, THEY THEY REALLY HAD A LOT OF PATROLS AND AND YOU KNOW, IT WAS KIND OF A NON LOITERING, NON SOLICITATION KIND OF THING OR SOMETHING.

BUT BUT I DO THINK THAT THAT'S KIND OF CRITICAL TO TO REALLY MAKE THE DOWNTOWN REVITALIZATION PROJECT OF YOU KNOW HAPPENING THING. IT IS CRITICAL.

AND I THINK CITIES ACROSS OUR COUNTRY ARE STRUGGLING WITH HOW WE HOW WE HOW WE RESOLVE THAT ISSUE WHILE WORKING WITHIN THE CONFINES OF THE LAW AND THE RIGHTS ASSOCIATED WITH THOSE MEN AND WOMEN BECAUSE THEY HAVE CONSTITUTIONAL RIGHTS LIKE EVERYBODY ELSE.

AND WHILE I TOTALLY AGREE, I REALLY DO.

JUST RECENTLY AT THE GOVERNOR'S SMALL BUSINESS COUNCIL CONFERENCE THAT WE HAD, THEY HAD SECURITY BECAUSE THE HOMELESS, THEY WERE QUITE VOCAL AND THEY WERE TALKING TO THE ATTENDEES.

AND, YOU KNOW, SO THAT'S WHY I BRING THAT UP.

AND THAT'S RIGHT NEXT DOOR, JUST OUTSIDE THE DOOR.

YEAH. YEAH.

IF IF A IF A HOMELESS PERSON COMES INTO THE HOTEL AND JUST DECIDES TO CAMP OUT IN THE LOBBY, THE THE THE OPERATOR OF THE HOTEL HILTON CERTAINLY HAS THE AUTHORITY TO REMOVE THEM FROM THE PREMISE.

RIGHT. AND THE CONFINES OF THEIR PROPERTY.

IF A HOMELESS PERSON STANDS IN FRONT, STANDS OUT IN THE PUBLIC STREET, WE HAVE THE ABILITY TO REMOVE THEM FROM THAT LOCATION IF THEY ARE STANDING IN FRONT OF THE THE THE PLAZA ASSOCIATED WITH THE FESTIVAL DISTRICT THAT IS ALSO PUBLIC PROPERTY.

AND WHILE THEY MAY BE ABLE TO HANG OUT THERE, RIGHT, BECAUSE IT'S A PUBLIC SPACE, THEY CAN'T CAMP.

AND IF THEY END UP SETTING UP CAMP OR SETTING UP SOME SORT OF PERMANENT PLACE, WE HAVE MEANS OF HANDLING THAT AS WELL.

IT'S SOMETHING THAT WE'RE GOING TO CONTINUE TO HAVE TO WORK ON.

WILL WE HAVE WILL WE HAVE ISSUES? OF COURSE WE'RE GOING TO HAVE ISSUES, BUT WE HAVE THE TOOLS TO ADDRESS IT.

I JUST WANT US TO BE AWARE.

OH, ABSOLUTELY. YEAH, THAT'S A VERY ASTUTE QUESTION TO TALK ABOUT BECAUSE WE HADN'T OPENED IT YET.

BUT THERE'S ALWAYS ABSOLUTELY THE OPPORTUNITY.

ARE THERE ANY OTHER QUESTIONS OR COMMENTS FROM THE BOARD AT THIS TIME?

[7. Tour of Doubletree by Hilton Hotel, at 500 Cypress Street.]

AND THAT BEING THE CASE, I WOULD ANNOUNCE THAT WE ARE NOW RECESSED.

AND THANK YOU FOR EVERYONE BEING HERE.

* This transcript was compiled from uncorrected Closed Captioning.