[CALL TO ORDER]
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ORDER. I WILL ASK OUR INVOCATION THIS MORNING.
>> GOOD LORD, WE ARE FOR THE MANY WAY US BLESS US WITH THE WARM WEATHER AND THE CHANGE AND THE PEOPLE IN SOUTHERN CALIFORNIA WITH THE FIRES AND THE PEOPLE IN SOUTH CAROLINA GOING WITH THE HURRICANES THIS YEAR AND JUST THE PEOPLE STRUGGLING, PEOPLE HELPING OTHERS STRUGGLES AND THE HEART OF GENEROSITY AND GRATEFUL FOR THE MEN AND WOMEN WHO SHARE THIS COMMUNITY AND THE POLICE AND FIRE AND WATER DEPARTMENT, PARKS, AND LIBRAIRIES AND THOSE WHO LIVE THEIR DAILY LIVES HELPING OTHERS, FOR THE MILITARY THAT PROTECT OUR INTERESTS AND PRAY FOR A SAFE RETURN HOME FOR THOSE FAR FROM THEIR FAMILIES.
PRAY THAT WE MAKE GOOD DECISIONS TODAY AND BLESS OUR THOUGHTS AND DISCUSSION. IN JESUS' NAME, AMEN.
>> HONOR TEXAS FLAG. I PLEDGE ALLEGIANCE TO THEE,
TEXAS, ONE STATE UNDER . >> I PLEDGE JEEZ.
[2. Ordinance (First Reading): Receive a Report, Hold a Discussion and Public Hearing, and Take Action on the Creation of a Second Reinvestment Zone No. RZ21-1 Being Approximately 940.89 Acres (Robert Hanna)]
>> WE WILL NOW MOVE TO ITEM 2 AND I WILL ASK ROBERT HANNA, CITY MANAGER TO PRESENT THE ITEM.
>> CITY COUNCIL, BEFORE US IS THE EXPANSION OF THE REINVESTMENT ZONE OR CREATION OF A NEW REINVESTMENT ZONE THAT WILL ENCOMPASS ADDITIONAL LANCIUM PROPERTIES. WE ARE ASKED TO DO THIS IN CONTEMPLATION OF FUTURE AND POTENTIAL --
>> MR. HANNA? >> WE DON'T HAVE THE CLOSED
>> WE -- >> THEY WERE NOT SURE THEY COULD
GET IT. >> I'M SORRY. I JUST --
>> NO ONE MAY HAVE SIGNED UP FOR.
>> IT'S ON -- LET'S MAKE SURE WE ARE BROADCASTING, THOUGH. I THINK THAT'S KEY. SO WE DO HAVE OUR INTERPRETERS? GOOD.
>> I APOLOGIZE. YOU TOTALLY INTERRUPTED THE FLOW.
>> I INTERRUPTED YOUR GROOVE. >> Y'ALL CAN SEE UP THERE? DOES
THAT MEAN IT'S STREAMING? >> ARE WE STREAMING?
>> OKAY. LET')S -- IF WE ARE BROADCASTING AND WE HAVE OUR INTERPRETERS, LET'S MOVE FORWARD.
>> THIS IS A REINVESTMENT ZONE THAT IS FOR FUTURE AND PROPOSED PROSPECTS AND THIS REINVESTMENT ZONE HAS TO BE ENLARGED TO ACCOMMODATE THE NEW PROPERTY THAT LANCIUM HAS. THAT'S THE POINT, THE FIRST READING. THIS IS A REINVESTMENT ZONE ZONE AND REQUIRED TO HAVE A TAX ABATEMENT. YOU HAVE TO HAVE THE REINVESTMENT ZONE DECLARED PER CHAPTER 312 OF THE TEXAS TAX CODE AND SIMILAR TO THE TAX REINVESTMENT ZONE OR CHAPTER 311, AND THEY ARE USED FOR DIFFERENT PURPOSES AND THIS PARTICULAR ONE IS USED FOR TAX ABATEMENT.
>> QUESTIONS FOR ROBERT? >> COULD YOU EXPLAIN THIS SITUATION TO THE AVERAGE CITIZEN WHO DOESN'T KNOW THE DIFFERENCE BETWEEN CHAPTER 311 AND 312 TO COMBAT THE IDEA OF WELL, WE ARE JUST GIVING MONEY TO A COMPANY WHO IS ALREADY SPENDING BILLIONS. YOU CAN EXPLAIN THE SITUATION AND WHY THIS IS
BENEFICIAL TO THE CITY? >> SURE. IT'S BENEFICIAL TO THE CITY BECAUSE THIS DOESN'T AFFECT ANYTHING THAT IS CURRENTLY HERE IN ABILENE, TEXAS. IF WE ARE GOING TO BE COMPETITIVE IN THE FUTURE, THEN WE HAVE TO BE COMPETITIVE WITH THE OTHER CITIES IN TEXAS THAT ARE COMPETING FOR THE FACILITIES AND OFFER TAX ABATEMENT, AND SOMETIMES, GREATER THAN WE
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OFFERED. SO TO BE COMPETITIVE, WE WANT TO HAVE ALL THE PIECES IN PLACE BECAUSE THE DEALS MOVE EXCEPTIONALLY FAST AND WE WANT TO ACCOMMODATE THE TIMELINES FOR THE PRIVATE SECTOR. AND THE RETURN FOR THE TAXPAYER -- THERE IS NO CITY MONEY INVOLVED IN THE DEAL AND WE ARE NOT PUT ANYTHING MONEY SSIDE FOR LANCI UM BUT THE TAX ABATEMENT, BUT OVER THE LIFE OF THE 20 YEAR TERM, THE REVENUE THAT WE WERE NOT GOING TO GET OTHERWISE. SO, YES, IT'S A TAX TAX ABATEMENT AND YES, IT'S A LARGE TAX A TAX ABATEMENT, BUT THERE COULD NOT BE ENOUGH REVENUE TO COVER THE LOSSES, AND IT'S FAIRLY STANDARD FOR THESE FACILITIES ACROSS THE STATE OF TEXAS. SOME GIVE LARGER ABATEMENTS THAN OTHERS. FORT WORTH HAS AN 85% ABATEMENT LIKE WE DO FOR THEIR FACILITY. THIS IS NOT UNUSUAL WHAT WE ARE ASKED TO DO.>> TO SUMMARIZE, WE ARE DOING A TAX ABATEMENT ON THIS SECTION AS AN EXPANSION. HOWEVER, WE HAVE AN AGREEMENT WHERE WE WILL GET A PERCENTAGE EVERY YEAR FROM THE COMPANY SO THAT WE ARE GETTING MILLIONS, IN FACT, FROM THE COMPANY OVER THE LIFE OF THIS PROJECT AND SO IF SOMEONE LOOKS AND GOES, OH, WE'RE LETTING A BIG MULTI-BILLION DOLLAR COMPANY EXIST TAX FREE, THAT'S NOT REALLY THE CASE. WE ARE ACTUALLY -- THROUGH AN AGREEMENT, WE ARE ACTUALLY AT A SET RATE WHERE THE CITY IS GETTING MONEY FROM THIS
COMPANY. IS THAT CORRECT? >> YES. WE WILL -- ON A TAX ABATEMENT SIDE, IT'S 15% OF YOUR TAX LIABILITY ESSENTIALLY SO WE'RE ABATING 85% AND THOSE MEMBERS ARE MILLIONS OF DOLLARS IN RECEIPTS. WHAT'S BEFORE THE COUNCIL TODAY IS THE CREATION OF THE SECOND REINVESTMENT ZONE THAT GOES OVER THE WHOLE ACREAGE, 940.498 ACHERS AND THAT IS REQUIRED BEFORE WE CAN
CONSIDER THE ABATEMENTS. >> AND FINALLY, AS FAR AS THIS GOES TODAY, THAT WOULD BE AN EXPANSION ADDING IN THE 940 ACRES TO THE ZONE AND THE REST FOR THAT IS WE BUILT PART OF THE COMPLEX WITH THE POTENTIAL FOR EXPANSION AND WE WANT TO ENCOURAGE THE EXPANSION BECAUSE WE WANT THE GROWTH AND FROM A TAX REVENUE, THE MORE WE RECEIVE, THE MORE WE BUILD, 15%.
>> THANK YOU. >> ANY OTHER QUESTIONS FOR
ROBERT? >> THANK YOU. AT THIS TIME, I WOULD OPEN UP THE PUBLIC HEARING. IS THERE ANYONE WHO WOULD LIKE TO SPEAK FOR OR AGAINST THE ITEM AND COME FORWARD AND THERE WILL BE A THREE MINUTE LIMIT. WE'LL START
WITH CARDS. >> WE HAVE ONE CARD, MR. MAYOR.
MR. GARCIA. >> IS IT THREE MINUTES INCLUDING
YOUR ANSWERS? >> YOU'VE GOT THREE MINUTES.
>> OKAY. SO MY NAME IS SAMUEL GARCIA. I LIVE AT 2734 BRENTWOOD. I STAND IN OPPOSITION OF THIS. NEXT WEEK, WE'RE GOING TO HAVE THE FOURTH ANNIVERSARY OF THE HUGE FREEZE THAT WE HAD BETWEEN FEBRUARY 10 AND FEBRUARY TAKEN. WE HAD THREE ABILENE RESIDENTS DIE AND THREE TAYLOR COUNTY RESIDENTS DIE. THREE PEOPLE DIED. WE LOST HEAT AND WATER AND HENDERSON WENT INTO LOST WATER MODE. THE WAY I UNDERSTAND IT, THESE PLANTS WILL USE A TREMENDOUS AMOUNT OF ELECTRICITY, A TREMENDOUS AMOUNT OF WATER. I WANT TO KNOW WHAT IS THE CITY'S PLAN IF WE HAVE ANOTHER EPISODE THAT WE JUST HAD WHERE PEOPLE DIED AND 20,000 HOUSEHOLDS LOST ELECTRICITY. I REMEMBER PEOPLE SAYING IF YOU LIVE CLOSE TO HENDRICK, THAT'S GOOD BECAUSE THEY WILL HOLD THE
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ELECTRICITY IN THE ROLLING BLACKOUTS BETTER WHICH IS START.YOU WANT TO KEEP PEOPLE ALIVE. BUT WHAT HAPPENS WITH THE USAGE OF ELECTRICITY AND WATER OF THIS FACILITY IF WE HAVE ONE OF THESE? WHAT PLAN DO YOU HAVE? I HOPE YOU HAVE ASKED THE QUESTION AND DONE A STUDY ON THE CAPACITY OF THE ELECTRICITY AND THE CAPACITY OF THE WATER USING WHAT WE JUST WENT THROUGH FOUR YEARS AGO. ALSO, I WANT TO KNOW WHY YOU ARE DOING THIS BACK BEYOND A REASONABLE DOUBTS. THIS AGREEMENT WITH LANCIUM WAS DONE IN 12 OF 2021. THIS THING WAS SUPPOSED TO BE FINISHED -- THE ORIGINAL DEAL WAS SUPPOSED TO BE FINISHED DECEMBER OF 2023. IT'S IN THE AGREEMENT. I AM ASSUMING THEY DID A NEW AGREEMENT.
OTHERWISE, THEY ARE TWO YEARS LATE. I HAVEN'T SEEN A NEW AGREEMENT. BUT IF IT'S THERE, HEY, WOULD LOVE TO GET IT. THEY WERE SUPPOSED TO DO THIS THEN. WHY ARE DIDN'T THEY DO IT? WHY? THIS IS NOT LIKE THE AIR FORCE BASE WHERE WE CAN GET REVENUES WE CAN COUNT ON. THIS IS REALLY, REALLY RISKY AND YOU TRY AND MAKE UP THE SCENARIO. OH, LET'S NOT SAY WE ARE GIVING AWAY MONEY TO THE REALLY, REALLY RICH PEOPLE. THAT'S WHAT WILL WHAT YOU ARE GOING TO DO. AND THE 85% YOU ARE GOING TO ABATE IS CHUMP CHANGE TO THESE FOLKS. THEY ANNOUNCED $500 BILLION REVENUES TO DO THESE PROJECTS AND APPARENTLY THEY HAVE PUT TOGETHER 100 BILLION. WE ARE LOOKING AT 15% THAT WILL BE REALLY, REALLY BIG. WHY? IF THEY ARE ALREADY DOING IT F , IF YOU SELL A CAR AND THE CUSTOMER COMES AND BUYS A CAR AND YOU SAY THEY MIGHT COME BACK AND GET ANOTHER CAR AND I WILL GIVE THEM 25, 80% BACK AND IT MAKES NO SENSE AND I'M SORRY. I HAVE ASKED QUESTIONS AND I WOULD LOVE TO GET THE ANSWERS, AND THREE MINUTES, I DON'T SEE A BIG CROWD HERE. THE OTHER THING I WANTED TO MENTION IS IT'S IRONIC THESE QUESTIONS ARE ASKED AND YOU ARE STILL PUTTING CARDS OUT THERE ABOUT WHAT OUR PHASES OF WATER RATIONING ARE. WE ARE PUTTING THAT OUTSIDE THE MEETING. YET, WE'RE GOING TO RISK THE WATER AND ELECTRICITY FOR THE HEALTH AND SAFETY OF THE COMMUNITY. IF YOU THINK THAT'S JUST BLUSTER, WE LOST SIX LIVES 4 YEARS AGO. THE ANNIVERSARY IS COMING UP NEXT WEEK. I THINK IT'S IMPORTANT FOR THE RISK TO THIS COMMUNITY TO ANSWER THOSE QUESTIONS AND IF YOU HAVE THE
ANSWERS, PUT THEM OUT THERE. >> THANK YOU FOR YOUR TIME.
STILL IN THE PUBLIC COMMENT PERIOD. WOULD ANYONE ELSE LIKE
TO SPEAK AT THIS TIME? >> I'VE LEARNED THAT WE KNOW IN PART, WE SEE IN PART AND I KNOW THERE ARE CONVERSATIONS THAT HAPPENED THAT WE ARE NOT PRIVY TO YET. AND I AM JUST TRYING TO UNDERSTAND THAT THERE IS MORE GOING ON THAN THE PUBLIC SEES BECAUSE THAT'S HOW THE DEALS GO. MY BIG QUESTION IS JUST -- I KNOW WE HAD A GREAT CONVERSATION ON FRIDAY ABOUT THE WATER AND WHAT THE PLANS ARE FOR THE NEXT FEW YEARS AND RESOURCES. HOW WILL THIS IMPACT OUR COMMUNITY RESOURCE WISE? I WOULD ASSUME Y'ALL WOULD HAVE THOUGHT THROUGH THAT AND WHAT IS IT IT LOOK LIKE FOR THE COMPANY? WILL THEY EXPAND THE NEED FOR RESOURCES? I DON'T KNOW IF WE WILL GET THE DETAILS BUT I KNOW THAT IS A CONVERSATION WE WOULD HAVE HAD BECAUSE IT'S NOT GOING TO DEPLETE ALL THE MONEY FOR THE RESOURCES WE NEED AS A CITY.
>> STILL IN THE PUBLIC COMMENT PERIOD. WOULD ANYONE ELSE LIKE TO SPEAK AT THIS TIME? SEEING NO ONE, I WILL CLOSE THE PUBLIC COMMENT PERIOD. COUNCIL, ANY FURTHER DISCUSSION?
>> ROBERT , DO YOU WANT TO ADDRESS THERE?
>> YES, SIR. THE COOLING SYSTEMS CAN BE WATER INTENSIVE. THIS PARTICULAR SYSTEMS IS A CLOSED -LEAK SYSTEM. WHEN THEY DISCHARGE WATER WE ARE LOOKING AT A TREATMENT TO PUSH THE WATER BACK IN THE STREAM CYCLES SO WE CAN USE IT AGAIN ONCE IT GETS IN THE STREAMS, AND THE PIPING SIZES THAT THEY ARE REQUESTING ARE NOT GOING TO PUT AN UNDUE BURDEN ON OUR WATER SUPPLY. WHAT THEY ARE USING WERE SEEN IN OTHER PARTS OF THE COUNTRY WHERE THE WATER USAGE WAS MUCH HIGHER. THIS PARTICULAR SPEAKS NOT. THEY WERE DESIGNED THAT WAY. WHEN IT COMES TO ENERGY PRODUCTION, THEIR PLANS ARE TO HAVE A LOT OF ENERGY. THEY ARE PRODUCING ON
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SITE, FREE ENERGY WHICH IS ONE OF THE WHOLE SELLING POINTS AND THE OTHER LOCATION, IS THE LOCATION BETWEEN THE EASTERN OR NORTHERN AND WESTERN NOSE GIVE THEM THE OPPORTUNITY TO LEVERAGE THE GRID THEY ARE NOT USING SO THEY CAN DO THAT. ENERGY, WIND AND SOLAR IS NOT PUT ON THE GRID BECAUSE IT'S NOT NEEDED THEY CAN TAKE THAT BE ENERGY AND USE IT AND THAT'S AN ARE ADVANTAGE TO SWITCH IT OVER QUICKLY. WE HAD A CATASTROPHIC EVENT. 18 MILLION PEOPLE AT ONE POINT IN TIME IN THE STATE OF TEXAS WERE OUT OF POWER. THAT'S SUBSTANTIAL. THAT WAS A MASSIVE GRID FAILURE. THAT WASN'T A LOCALIZED PROBLEM. ONE OF THE THINGS THAT COUNCIL TALKED ABOUT ON FRIDAY IS MAKING SURE THAT WE HAVE BACKUP GENERATORS TO KEEP THIS FROM HAPPENING IN THE FUTURE. I THINK WHAT ABILENE CAN DO TO BE PREPARE FOR LIKE THE WINTER STORM IS WE ARE DEFINITELY MOVING IN THAT DIRECTION. SO THOSE ARE THE ANSWERS THAT I HAVE TODAY.>> QUESTIONS? >> TO THE POINT WHY ARE WE DOING
THIS BACKWARDS AS IT WAS STATED. >> YES, SIR.
>> MY UNDERSTANDING IS THEY HAVE BUILT PART OF IT, BUT NOW THEY ARE LOOKING AT EXPANSION WHICH ADDS MORE VALUE TO THE PROPERTY WHICH IN TURN ADDS MORE REVENUE TO THE CITY WHICH TAKES THE BURDEN OFF THE TAXPAYERS HERE. THIS -- WE ARE NOT THE ONLY POTENTIAL SITE. THEY CAN BUILD OR EXPAND OR DO OTHER SITES AROUND THE COUNTRY. WE WANT TO DO THIS TO INCENTIVIZE THEM TO CONTINUE TO EXPAND HERE, OUR FOOTPRINT SO OUR REVENUE BASE, OUR JOBS INCREASE. IS THAT CORRECT?
>> THAT IS CORRECT. THE OTHER THING IS, MR. GARCIA IS CORRECT.
IT IS AGREEMENT IS EXPIRING AND THAT IS WHAT THE CONSTRUCTION IS UNDER. VERY SIMILAR TERMS, MR. GARCIA, EXCEPT THERE IS NO PILOT NO PAYMENT IN LIEU OF TAXES. WE WENT A STRAIGHT ABATEMENT INSTEAD OF A PILOT BECAUSE THERE IS MORE MONEY COMING TO THE TAXPAYER THROUGH THAT PROCESS AND THAT ABATEMENT STRUCTURE IS WHAT WE WILL CONSIDER AT THE COUNCIL MEETING.
>> ANYONE ELSE? I WILL ACCEPT A MOTION AND SECOND.
>> SO MOVED. >> MOTION BY COUNCILMEMBER
>> SECOND BY COUNCILMEMBER YATES.
>> READY TO VOTE. >> ALL YESES. MOTION CARRIED.
>> MOTION CARRIED. SO IT DOESN'T HAVE TO BE A ROLL CALL?
>> NO. >> THAT WAS IN THE NOTES. OKAY.
* This transcript was compiled from uncorrected Closed Captioning.