3. Consider a resolution of the City of Bedford, Texas authorizing the Interim City Manager to negotiate and execute a memorandum of understanding (MOU) with Midway Development Group, LLC, for the Bedford Commons Mixed-Use Project (Generally located between Bedford Rd., L. Don Dodson Dr., E M Bilger Blvd., and Parkwood Dr.); outlining parameters under which Midway and the City of Bedford will proceed with development of the project; and providing an effective date. (Presentation by Midway Representatives)

[3. Consider a resolution of the City of Bedford, Texas authorizing the Interim City Manager to negotiate and execute a memorandum of understanding (MOU) with Midway Development Group, LLC, for the Bedford Commons Mixed-Use Project (Generally located between Bedford Rd., L. Don Dodson Dr., E M Bilger Blvd., and Parkwood Dr.); outlining parameters under which Midway and the City of Bedford will proceed with development of the project; and providing an effective date. (Presentation by Midway Representatives)]

NEGOTIATE AND EXECUTE A [INAUDIBLE].

MEMORANDUM? MY BAD, OF UNDERSTANDING.

THAT'S ALSO MOU WITH MIDWAY DEVELOPMENT GROUP, LLC FOR THE BEDFORD COMMONS MIXED USE PROJECT, GENERALLY LOCATED BETWEEN BEDFORD ROAD, L DON DODSON DRIVE, EM BILGER BOULEVARD AND PARKWOOD DRIVE, OUTLINING THE PARAMETERS UNDER WHICH MIDWAY AND THE CITY OF BEDFORD WILL PROCEED WITH THE DEVELOPMENT OF THE PROJECT AND PROVIDING AN EFFECTIVE DATE.

SO GO AHEAD AND GIVE YOU INTERIM CITY MANAGER, ANDREA ROY.

THANK YOU, MAYOR COGAN, COUNCIL.

I WILL KIND OF KICK THIS OFF TONIGHT.

FIRST OF ALL, I FEEL LIKE I OWE YOU A LITTLE HISTORY OF KIND OF HOW WE GOT HERE.

I THINK MOST OF YOU WILL PROBABLY BE FAMILIAR WITH THIS IS NOT A UNCOMMON TERMINOLOGY.

WE DID ACTUALLY EXECUTE AN MOU WITH ANOTHER GROUP A COUPLE YEARS AGO.

AND I DO WANT TO MENTION SOMETHING BEFORE YOU GET THIS GOING.

I DO RECOGNIZE MANY RESIDENTS FROM BEDFORD PARK THAT ARE IN THE AUDIENCE HERE TODAY.

AND SO I WELCOME THEM FOR BEING HERE FOR THIS COUNCIL MEETING, BECAUSE I KNOW THAT THE HISTORY OF THIS IS NOT FALLEN ON YOU BECAUSE I KNOW MANY OF YOU WERE HERE KEEPING COUNCIL HERE UNTIL THREE IN THE MORNING AT ONE PARTICULAR EVENING.

SO I WELCOME YOU ALL HERE TODAY TO LISTEN TO THIS, THIS NEW PROJECT.

I'M SORRY. NO.

NO PROBLEM. THANK YOU, I APPRECIATE THAT.

SO, AS I MENTIONED, WE HAD ACTUALLY ENTERED INTO AN MOU WITH ANOTHER GROUP A COUPLE YEARS AGO.

AFTER THAT WAS DONE, WE DID PROGRESS AND MOVE FORWARD.

THE CITY DID HIRE A ENGINEER TO CONDUCT PRELIMINARY ENGINEERING ON THE SITE, WHICH DID INCLUDE A CONCEPTUAL PLAN.

AS THAT WAS MOVING FORWARD, TIME WAS GOING ON HONESTLY, THINGS WERE PROGRESSING, BUT NOT QUITE AS QUICKLY AS WE HAD HOPED.

DURING THAT TIME, WE WERE ALSO WORKING WITH HAAS HILL, OUR GROUP THAT'S WORKING ON OUR MASTER PLAN WITH US.

AND SO WE WERE HAVING A CONVERSATION WITH NINA AND TONY ONE AFTERNOON, AND THEY WERE LOOKING AT THE CONCEPTUAL PLAN THAT THE ENGINEER HAD DRAWN UP, AND WE WERE TALKING THROUGH IT AND THEY SAID, YOU KNOW, THERE'S A GROUP OUT OF HOUSTON THAT WE'VE WORKED WITH IN THE PAST.

WE'VE SEEN THEIR WORK.

I'D LOVE TO BRING THEM IN AND JUST VISIT WITH THEM, HAVE A CONVERSATION.

I THINK THEY CAN PROVIDE YOU SOME FEEDBACK ON THIS.

THERE WERE CONCERNS WITH THE PLAN.

AND, YOU KNOW, THIS IS SOMETHING THAT WE DO NOT TAKE LIGHTLY.

WE HAVE A CHANCE TO GET THIS RIGHT ONE TIME, AND WE WANT TO MAKE SURE THAT IS THE CASE.

SO AS THAT CONVERSATION PROGRESSED WE BASICALLY REALIZED THAT OUR GOALS AND VISIONS FOR THIS AREA WERE VERY MUCH ALIGNED WITH THE DEVELOPER THAT YOU'LL HEAR FROM THIS EVENING.

AND THE GROUP I WILL JUST SAY IS, IS ABSOLUTELY THEIR REPUTATION IS IMPECCABLE.

THEIR PRODUCTS ARE STUNNING, AND I JUST CAN'T TELL YOU HOW IMPRESSED WE ARE WITH OUR INTRODUCTIONS AND WHERE WE'VE BEGUN WITH THIS GROUP SO FAR.

SO THAT'S WHERE WE LANDED AND THAT'S WHERE WE'VE LANDED, WHERE WE ARE RIGHT NOW.

COINCIDENTALLY, THE TIMING IS ALSO PERFECT IN ORDER FOR US TO SHIFT DIRECTION AS OUR PRIOR MOU IS EXPIRING AT THE END OF THIS MONTH AS WELL.

SO THIS IS WHERE IT ALLOWED US TO HAVE A SHIFT IN DIRECTION AND MOVE IN THIS WAY.

SO I FELT LIKE I OWED AN EXPLANATION FOR HOW WE GOT HERE.

I KNOW THAT QUESTION HAS BEEN ASKED, SO WHAT I WILL DO IS GO AHEAD AND INTRODUCE NAINA MAGON WITH HAWES HILL, OUR MASTER PLAN DEVELOPER, AND THEN I WILL LET HER TURN IT OVER TO MIDWAY AND THEY'LL SHARE THEIR INFORMATION WITH YOU ALL.

THANK YOU. GOOD EVENING, MAYOR, COUNCIL MEMBERS, NAINA MAGON WITH HAWES HILL AND ASSOCIATES.

I'VE HAD THE OPPORTUNITY, ALONG WITH TONY ALLENDER, WITH HAWES HILL AND ASSOCIATES TO WORK WITH YOU ALL THIS PAST YEAR ON CREATING A VISION AND COMPREHENSIVE PLAN FOR THE

[00:25:07]

COMMUNITY, AND REALLY LOOKING AT HOW WE CAN MOVE BEDFORD FORWARD AND FROM A GROWTH AND DEVELOPMENT AND REDEVELOPMENT STANDPOINT.

AND ALL THE TIMES THAT WE'VE BEEN WORKING ON THIS VISION AND HOW TO MAKE IT REALITY AND HEARING THE COMMUNITY, WE KNOW BEDFORD COMMONS HAS BEEN A REALLY IMPORTANT COMPONENT.

WE HAD LOOKED AT THE PLANS EVEN IN OUR PUBLIC INVOLVEMENT.

WE ALWAYS HEARD EVERYBODY TALK ABOUT BEDFORD COMMONS, EVEN VISITING WITH COUNCIL AND PLANNING AND ZONING COMMISSION THAT THIS WAS A REALLY SPECIAL PROJECT TO THIS COMMUNITY.

WE KNOW IT WAS ONE OF THOSE LAST PLACES WHERE WE COULD CREATE SOMETHING OF A TRUE DESTINATION AND A TRUE PLACE, AND THERE WERE ALL THESE PLANS AND IDEAS OUT THERE, BUT IT WAS NOTHING HAD COME TO FRUITION AS OF YET, AND I THINK ONE WORKSHOP AS ANDREA SAID, WE WERE WORKSHOPPING THE COMPREHENSIVE PLAN, LOOKING AT LAND USE AND TRANSPORTATION DECISIONS AND HOW WE COULD IMPLEMENT THE PLAN.

AND AS YOU ALL RECALL, WHEN WE, TONY AND I FIRST CAME AND PRESENTED TO YOU, THAT WAS ONE THING WE PROMISED IT WAS NOT GOING TO BE A PLAN THAT WOULD SIT ON YOUR SHELF.

WE WOULD FOCUS ON IMPLEMENTATION AND HOW TO REALLY MAKE THINGS HAPPEN, AND THAT YOU GUYS COULD TAKE FORWARD AND MAKE HAPPEN.

SO WE WERE TALKING ABOUT BEDFORD COMMONS, AND WE WERE BRAINSTORMING DIFFERENT IDEAS WITH ANDREA AND STAFF, AND WE PAUSED FOR A MOMENT OF, HOW DO WE TAKE THIS PLAN THAT'S BEEN SITTING HERE AND THIS VISION THAT THIS COMMUNITY HAS WANTED, AND HOW DO WE MAKE THAT REALITY? AND WHEN I FURTHER UNDERSTOOD THE VISION AND WHAT EVERYBODY WANTED TO ACHIEVE FROM A LAND USE STANDPOINT, FROM A PLACEMAKING STANDPOINT, FROM AN OPEN SPACE AND INTEGRATION OF DIFFERENT USES AND SCALE, IT REMINDED ME A LOT OF DEVELOPMENTS THAT I HAD SEEN IN HOUSTON THAT MIDWAY HAD BEEN A PART OF, AND THEY'VE BEEN HUGELY SUCCESSFUL DEVELOPMENTS.

AND I TOLD ANDREA, LET'S STOP FOR A MOMENT.

LET'S GET SOME GUIDANCE FROM THE EXPERT.

LET'S GET SOME OF HOW WE CAN MOVE FORWARD AND MAKE THIS HAPPEN HERE IN BEDFORD BEFORE WE ACTUALLY MAKE THIS PLAN FORWARD AND MAKE SOME RECOMMENDATIONS IN THE PLAN THAT PHONE CALL, BRAD FREELS, CHAIRMAN AND CEO OF MIDWAY, WAS GRACIOUS ENOUGH TO GET ON A PHONE CALL TO GIVE US THAT GUIDANCE, AND THAT GUIDANCE AND PHONE CALL TURNED INTO A VISIT TO BEDFORD TO WALK THE SITE TURNED INTO A POTENTIAL PARTNERSHIP TO ACTUALLY MAKE THAT HAPPEN.

I WILL SAY I'M VERY FAMILIAR WITH LOTS OF MIDWAY'S PROJECTS, HUGELY SUCCESSFUL.

THEY DO A GREAT JOB OF INTEGRATING COMMUNITY VALUES INTO THEIR DEVELOPMENTS.

THEY WORK ON DEVELOPMENTS BOTH SMALL AND LARGE.

GREAT JOB OF INTEGRATING SPACE AND OPEN SPACE.

THE MIX OF USES, THE SCALE, THE TYPES OF RESIDENTIAL YOU WANT TO SEE, FANTASTIC, HUGELY SUCCESSFUL PROJECTS ALL OVER THE GREATER HOUSTON AREA.

SO I'M EXCITED THAT THEY GET TO WE GET TO BRING THEM HERE TO BEDFORD FOR THIS POTENTIAL PARTNERSHIP OPPORTUNITY.

BECAUSE I KNOW AGAIN, WHEN WE PROMISED YOU WHEN WE CAME HERE, WE REALLY WANT TO SEE YOUR VISION TURNED INTO REALITY.

AND IT ALWAYS STARTS WITH THAT VISION.

AND THIS IS THAT OPPORTUNITY TO NOW TAKE THAT TO THAT NEXT LEVEL AND MAKE SOMETHING HAPPEN.

WITH THAT, I WILL INTRODUCE BRAD FREELS, CEO AND CHAIRMAN OF MIDWAY, AND HE CAN INTRODUCE THE REST OF HIS TEAM.

THANK YOU, THANK YOU.

HOW ARE Y'ALL TONIGHT? GOOD. HOW ARE YOU? HOW YOU DOING, BRAD? GOOD, GOOD.

FIRST, THANK YOU FOR HAVING ME UP, MAYOR AND COUNCIL MEMBERS.

WHAT SHE'S PASSING OUT IS BASICALLY WHAT YOU'RE GOING TO SEE HERE.

I'M PROBABLY NOT GOING TO GO THROUGH IT AT AD NAUSEUM, BUT I WANTED YOU TO HAVE A COPY IN CASE YOU HAD DEEPER QUESTIONS.

BUT I APPRECIATE THAT INTRODUCTION.

AND THANK YOU ALL FOR BEING HERE AS NEIGHBORS TO THE AS WE GO THROUGH THIS, YOU'LL UNDERSTAND HOW WE GET INSPIRATION IS FROM THE COMMUNITY.

SO I APPRECIATE YOU ALL BEING HERE AND HAVING AN INTEREST.

MY NAME IS BRAD FREELS, AND I HAVE THE PRIVILEGE OF SERVING AS CHAIRMAN AND CEO OF MIDWAY.

MIDWAY, I DON'T KNOW HOW WE'RE GOING TO GO THROUGH THIS.

IS THIS YOU MIGHT WANT TO FLIP.

HOW DO I LET SOMEBODY KNOW? I GET TO DO IT MYSELF.

WOW. THIS IS GREAT. [LAUGHTER] WHICH WAY? LET'S SEE. OKAY.

THE ONE WITH THAT.

YOU KNOW, YOU'RE PROBABLY THINKING WHY? YOU KNOW, WE'RE IN THE DALLAS FORT WORTH METROPLEX.

WHY DO I NEED SOMEBODY FROM HOUSTON TO COME SHOW ME HOW TO DO THINGS? HOUSTON'S A NO ZONE CITY.

WHAT DO THEY KNOW ABOUT DEVELOPMENT? YOU KNOW, THAT'S A GOOD QUESTION.

I'D PROBABLY BE ASKING THE SAME THING, BUT MIDWAY WAS ACTUALLY FOUNDED IN DALLAS IN 1968.

IF YOU RECOGNIZE THE NAME MIDWAY, IT CAME FROM MIDWAY ROAD.

ONE OF THE FIRST PROJECTS WE DID WAS I WASN'T WITH THEM AT THE TIME, WAS MIDWAY AND LBJ A BUSINESS PARK THERE, ABOUT 180 ACRES.

AND OUR FOUNDER, JIM MORAN, WHO'S DECEASED, HE PASSED AWAY IN 1999.

BUT THAT WAS ONE OF HIS VISIONS.

AND JIM WAS JUST A GREAT VISIONARY FOR REAL ESTATE.

AND I HAD THE OPPORTUNITY TO JOIN HIM IN 83.

AND I OPENED UP THE HOUSTON OFFICE.

LIKE I SAID, HE PASSED AWAY IN 99 AND WE RELOCATED TO HOUSTON AT THAT TIME, THE HEADQUARTERS.

SO THAT GIVES YOU A LITTLE BACKGROUND.

OKAY. THANK YOU. [LAUGHTER] WE'RE BETTER AT DEVELOPMENT THAN WE ARE AT THIS [INAUDIBLE].

[00:30:01]

JUST SAYING THANK YOU FOR THE OPPORTUNITY.

WHEN WE FIRST MET THE FIRST QUESTION WE ASKED PEOPLE IS, WHAT ARE YOU TRYING TO ACHIEVE? YOU KNOW, LET ME TELL YOU, IF THAT'S IN OUR WHEELHOUSE OR IF YOU'RE DREAMING OR IF IT'S A REAL POSSIBILITY.

AND I WAS REALLY IMPRESSED WITH ANDREA'S ARTICULATION OF WHAT THEY WERE TRYING TO DO.

AND SO WE PLANNED A TRIP UP AND IT WAS JUST WE WEREN'T LOOKING FOR A JOB.

WE WERE JUST ADVISING.

WE HAVE A LOT OF RESPECT FOR HAWES HILL.

I SERVE ON SOME BOARDS ON SOME GROUPS THAT THEY REPRESENT AND THINK A LOT OF THEM.

SO I DID IT MORE AS A FAVOR.

AND WHEN I CAME UP HERE AND I SAW THE PROPERTY, I THOUGHT, YOU KNOW, THIS IS THE HEART OF THE MELON, AND YOU HAVE AN OPPORTUNITY TO DO THIS RIGHT.

AND IF YOU MISS IT BY AN INCH, YOU'RE GOING TO MISS IT BY A MILE, IN MY OPINION.

AND THERE'S VERY FEW PLACES THAT YOU HAVE AN OPPORTUNITY TO HAVE NATURAL GREEN SPACES.

AND, YOU KNOW, YOU CAN TAKE A NATURAL GREEN SPACE AND MAKE IT LOOK MANUFACTURED, OR YOU CAN DESIGN IT TO LOOK LIKE IT'S NATURAL AND STILL ACCOMPLISH WHAT YOU NEED IT TO ACCOMPLISH. AND FORTUNATELY, IN OUR 55 YEAR CAREER WE'VE GOTTEN TO A POINT WHERE WE HAVE THE OPPORTUNITY TO KIND OF, AND I DON'T MEAN THIS IN AN EGOTISTICAL WAY.

WE HAVE THE OPPORTUNITY TO PICK THE OPPORTUNITIES WE WANT TO WORK ON.

WE GET SEEN, WE GET SHOWN A LOT OF THINGS, AND MOST THINGS JUST DON'T FIT OUR LENS, YOU KNOW, AND WHAT WE DO AS A COMPANY, WE LIKE TO WORK ON PROJECTS THAT CAN ENRICH PEOPLE'S LIVES AND ACTUALLY MAKE A DIFFERENCE.

YOU CAN MAKE MONEY AND DO GOOD THINGS AT THE SAME TIME.

IT'S NOT THAT DIFFICULT.

BUT ANYWAY JUST AS A LITTLE INTRODUCTION AGAIN, BEEN IN BUSINESS FOR 55 YEARS.

I DON'T KNOW IF YOU ALL CAN SEE THAT.

CAN YOU ALL SEE THAT OKAY? AND I DON'T MEAN TO TURN MY BACK TO YOU ALL, BUT I FEEL LIKE I GOT THE TRUSTEES [INAUDIBLE], SO DON'T TAKE IT PERSONALLY.

[LAUGHTER] YOU KNOW, WE HAVE IN OUR PROJECTS WE TAKE COMMUNITY INVOLVEMENT REAL SERIOUSLY.

LAST YEAR, I THINK THIS GOES BACK TO 22.

THAT NUMBER, WE DID OVER 500 EVENTS AT OUR PROJECTS.

AND THOSE AREN'T THINGS THAT WE PROGRAMED.

WE SOMETIMES WE PRIME THE PUMP TO GET THEM STARTED, BUT THEN WE LET THE NEIGHBORHOODS BASICALLY ADOPT OUR PROJECTS, AND THEY COME OVER AND THEY SAY, HEY, CAN WE HAVE THE KIDS CHOIR COME UP HERE AND DO THIS? CAN WE DO A CAR SHOW HERE? CAN WE DO THIS THING? AND THE EVENTS ARE ACTUALLY PROGRAMED BY THE COMMUNITIES THAT WE'RE IN, BUT WE KIND OF HELP FACILITATE THEM.

BUT WE CREATE AN ENVIRONMENT THAT IT JUST IT SEEMS VERY ORGANIC.

IT JUST STARTS TO HAPPEN.

I CAN'T SEE THAT LAST NOTE THERE, BUT.

OH, IT SAYS ALL IN TEXAS.

THESE PROJECTS ON THE RIGHT ARE ALL IN TEXAS.

WE'VE ACTUALLY DEVELOPED IN 26 STATES AND NORTHERN MEXICO OVER OUR TEN YEAR, BUT WE PRIMARILY FOCUS IN TEXAS.

TEXAS IS A GROWTH STATE.

THERE'S MORE THAN WE CAN SAY GRACE OVER IN TEXAS.

SO WE DON'T GO VERY FAR OUT OF IT.

BUT JUST LOOKING AT THESE, THESE ARE COMMUNITY PROJECTS THAT WE'VE DONE UP IN KINGWOOD, SMALL COMMUNITY IN HOUSTON CITY CENTER.

THAT PROJECT, I'M PROUD TO SAY, IS ABOUT 11 YEARS OLD NOW.

IT WAS NAMED THE DEVELOPMENT OF THE DECADE IN HOUSTON LAST YEAR.

IT'S BEEN A TREMENDOUS SUCCESS, NOT ONLY FINANCIALLY, BUT AS A COMMUNITY PLACE.

EAST RIVER IS A PROJECT THAT WHEN YOU SEE THERE, IT'S 150 ACRES ONE MILE EAST OF HOUSTON.

WE HAVE A MILE AND A HALF OF WATER FRONTAGE.

WE ACTUALLY HAVE [INAUDIBLE] ON THAT SIDE OF TOWN.

AND THAT'S A PROJECT THAT I'M REALLY EXCITED ABOUT.

IT'S A 25 YEAR PROJECT.

WE'RE JUST DELIVERING THE FIRST PHASE, BUT IT'S BEING VERY WELL RECEIVED BECAUSE IT'S DIFFERENT AND IT'S WHAT THE COMMUNITY KIND OF EMBRACED.

AND ON THE EAST SIDE OF TOWN, WE ARE CONNECTING TWO OLD WARDS, THE FIFTH WARD, WHICH IS PRIMARILY BLACK, AND THE THIRD WARD, WHICH IS PRIMARILY AND THE SECOND WARD, WHICH IS PRIMARILY HISPANIC.

AND THIS WAS BROWN AND ROOT'S HEADQUARTERS FOR THE LAST 100 YEARS.

AND IT SEPARATED THESE TWO COMMUNITIES.

AND WE'RE ACTUALLY BRIDGING THESE BACK.

AND IT'S JUST BEEN A JOY TO WORK WITH.

I WON'T GO THROUGH ALL OF THEM, BUT YOU SEE CENTURY SQUARE, THAT'S A LITTLE PROJECT WE DID IN COLLEGE STATION.

YOU'RE FROM [INAUDIBLE]? IT'S AGAIN, I'M AN AGGIE.

AND SO WE HAD THE OPPORTUNITY TO DO SOMETHING SPECIAL THERE.

COLLEGE STATION NEVER REALLY HAD A DOWNTOWN.

THE UNIVERSITY CAME, AND THEN IT JUST GREW UP, AND IT WAS ONE STRIP CENTER AFTER ANOTHER.

AND THERE WAS NOT A PLACE THAT JUST FELT LIKE IT BELONGED.

AND WE LEASED ABOUT 70 ACRES FROM THE UNIVERSITY AND DID A DEVELOPMENT.

AND WE'RE DOING THE SECOND PHASE RIGHT NOW.

AND IT'S THANK YOU FOR [INAUDIBLE].

THAT'S WE'RE VERY PROUD OF THAT ONE.

BUT ALL THOSE ARE EXAMPLES OF HOW YOU EMBRACE THE COMMUNITY.

I WON'T GO INTO THIS LARGE DETAIL, BUT FOR EXAMPLE, I WANT TO TALK ABOUT THIS ONE WHERE IT SAYS NOTABLE COMMUNITY EXPERIENCE OR IT TALKS ABOUT LEVY PARK.

WE WERE CONTACTED BY A REGION IN HOUSTON CALLED UPPER KIRBY DISTRICT, AND THEY HAD A PIECE OF PROPERTY AS A PARK, BUT IT WAS DERELICT.

[00:35:06]

THEY'D GO OUT THERE IN THE MORNINGS AND PICK UP NEEDLES AND BEER CANS AND DIDN'T GET MANY PEOPLE.

IT JUST WAS DRAWING THE WRONG CROWD.

AND THEY SAID WE HAD TO BUY THESE APARTMENTS HERE BECAUSE IT WAS GETTING BAD.

SO NOW WE OWN THE APARTMENTS NEXT TO THE PARK THAT'S DERELICT, AND WE'VE DONE A MILLION STUDIES ON THIS, AND WE JUST NEED TO FIGURE OUT HOW WE ENERGIZE THIS PLACE AND MAKE IT, YOU KNOW, A PLACE THAT PEOPLE WANT TO COME.

AND WE STUDIED IT FOR A LITTLE BIT AND WE SAID, YOU KNOW, I HATE TO TELL YOU THIS, BUT IF YOU DEVELOP IT, WE CAN CHANGE IT.

AND THEY SAID, WHAT DO YOU MEAN? WE SAID, YOU KNOW, IT'S NOT THE BEST OFFICE SITE, BUT IT'S NOT THE WORST.

IT'S NOT THE BEST MULTIFAMILY SITE, BUT IT'S NOT THE WORST.

IT'S IN A GREAT GENERAL AREA.

BUT YOU HAVE TO CHANGE.

YOU HAVE A PARK THAT RUNS NORTH SOUTH.

IT REALLY SHOULD RUN EAST WEST.

SO LET'S GET WITH THE PARKS DEPARTMENT AND SEE IF WE CAN TRADE THEM SQUARE FOOT FOR SQUARE FOOT, HOW WE CAN MAKE THIS.

AND THEN WE'LL PUT TWO PRIVATE STREETS ON, ONE ON EACH SIDE OF THE PARK.

AND I SAID I'LL COMMIT, AND THEN I'LL LEASE THE OTHER LAND BACK FROM YOU.

AND I'LL COMMIT TO SPEND AT LEAST $125 MILLION HERE.

AND BY THAT IF YOU HAVE.

WE HAVE TIRZ IN HOUSTON.

I KNOW YOU ALL DO HERE AS WELL, BUT WE SAID WE'LL CREATE A TIRZ.

I'LL COMMIT TO SPEND $125 MILLION.

LET'S TAKE THE INCREMENT, WHICH GETS YOU ABOUT $15 MILLION AND USE THAT TO REDEVELOP THE PARK.

AND IF WE REDEVELOP THE PARK RIGHT, IT NOW BECOMES A FRONT DOOR TO AN OFFICE BUILDING.

IT BECOMES A FRONT DOOR TO A FABULOUS MULTIFAMILY PROJECT.

AND SO EVERYBODY BOUGHT IN.

WE GOT THE CITY'S SUPPORT ON IT.

AND I JUST LOVE THIS PROJECT BECAUSE WE USE TIRZ DOLLARS, OUR OWN INCREMENTAL TAX, TO CREATE THE PARK, WHICH IS ABOUT $15 MILLION.

OUR GROUND LEASE PAYMENTS ARE ABOUT $600,000 A YEAR.

THAT HELPS MAINTAIN THE PARK.

AND IT'S JUST A SUSTAINABLE PROJECT.

AND I'M PROUD TO SAY THAT TWO YEARS AGO THERE'S A GROUP CALLED ULI THAT STUDIES THESE THINGS AROUND THE WORLD, AND WE TIED FOR FIRST PLACE GLOBALLY FOR THE PARKS.

AND WE HAVE OVER 10,000 PEOPLE A WEEK COME TO THIS PARK NOW.

AND IT IS A TRUE MAGNET.

AND WE DIDN'T DO THAT MUCH.

WE JUST KIND OF PLAYED WITH THE PIECES THAT WERE THERE AND TRIED TO FIGURE OUT HOW TO MAKE IT SUSTAINABLE AND MAKE IT OF INTEREST, BUT IT IS.

WE'RE NOT PICKING UP NEEDLES IN THE PARK AND BEER CANS ANYMORE.

LET ME JUST SAY IT THAT WAY.

YOU KNOW, EAST RIVER IS ONE THAT I JUST TALKED ABOUT.

AGGIE PARK AND COLLEGE STATION, I 40 YEARS AGO, I WENT TO A&M AND I WENT BY THIS DERELICT PIECE OF PROPERTY WITH A DITCH IN THE MIDDLE OF IT.

YOU REMEMBER IT? THEY CALLED IT SPENCE PARK AT THE TIME, AND IT WASN'T EVEN REALLY NAMED SPENCE PARK, BUT THAT'S WHAT IT WAS CALLED.

AND OVER THE YEARS, I KEPT THINKING, SURELY THEY'RE GOING TO DO SOMETHING WITH THIS.

AND OVER THE YEARS IT JUST BECAME MORE AND MORE JUST A RUNDOWN.

AND I WENT TO THE UNIVERSITY.

I SAID, CAN I JUST FIX THIS FOR Y'ALL? AND THEY SAID, OH NO, WE LIKE IT THE WAY IT IS.

AND I'LL TELL YOU HOW I GOT IT FINALLY DONE.

I HAD ONE OF OUR YOUNG MARKETING PEOPLE GO UP THERE AND TAKE A BUNCH OF PICTURES, AND I TOOK A PICTURE OF THE DITCH WITH ALL THE BRICKS AND THE BOULDERS AND JUST EVERYTHING THROWN IN THERE, AND I PRINTED IT ON 11 BY 17 ACROSS FROM, I PUT TEXAS A&M NUMBER ONE CIVIL ENGINEERING SCHOOL IN THE COUNTRY.

EXAMPLE OF OUR WORK.

AND THEN I FLIPPED THE PAGE AND I TOOK THE TURF, AND THE TURF WAS ALL BEAT UP.

AND I SAID, NUMBER ONE TURF SCHOOL IN THE COUNTRY.

AND I WENT THERE AND THEN THE ARCHITECTURAL.

AND I SENT IT TO OUR CHANCELLOR, AND I SAID, COME ON, GUYS, WE NEED TO LEAD BY EXAMPLE HERE.

AND SO AFTER SEVEN YEARS, THEY GAVE US PERMISSION TO WE LEASED THE LAND FROM THEM FOR TWO YEARS.

WE RAISED $38 MILLION AND JUST CHANGED THIS PARK.

AND IT IS JUST FABULOUS.

BUT IT CHANGES HOW PEOPLE VIEW THE UNIVERSITY NOW AND THE NUMBER OF PEOPLE THAT GO THERE.

IT'S JUST AND WE DID IT PRO BONO.

WE JUST IT WAS JUST NOT RIGHT.

AND SO WE FIXED IT.

AGAIN, JUST IMAGES OF PROJECTS WE'VE DONE OVER THE TIME.

YOU KNOW, WE'RE FORTUNATE WE GET A LOT OF REWARDS FOR THINGS.

WE DON'T SEEK THEM, BUT WE'RE RECOGNIZED.

THIS IS A TEAM THAT WE'VE KIND OF PUT TOGETHER.

YOU'LL SEE THESE PEOPLE ON THIS PROJECT IF WE'RE FORTUNATE ENOUGH TO DO IT.

ONE FACE YOU MIGHT RECOGNIZE ON THERE IS JOSH HENDON.

JOSH IS ACTUALLY A NATIVE OF BEDFORD, AND HE'S ONE OF OUR SHINING STARS ON OUR INVESTMENT TEAM.

WE CALL OUR GUYS THAT RUN PROJECT AND LADIES THAT RUN PROJECT INVESTMENT MANAGERS, BECAUSE IT IS THEIR PROJECT TO RUN.

AND JOSH IS ONE OF OUR TEAMS. AND WHEN THIS OPPORTUNITY CAME UP, I KNEW JOSH WAS FROM BEDFORD.

AND I SAID, YOU WANT TO GO DO SOMETHING IN YOUR HOMETOWN? HE GOT EXCITED ABOUT IT, AND I THOUGHT THAT WAS KIND OF A FUN COINCIDENCE.

DAVID HIGHTOWER, YOU SEE, IS A AND JOSH IS BACK HERE, I SHOULD SAY.

[00:40:01]

JOSH, WHY DON'T YOU WAVE.

WELCOME BACK HOME, JOSH.

I WAS GLAD WHEN I MENTIONED HIS NAME.

HE WAS ACTUALLY ACCEPTED BACK INTO THE CITY.

[LAUGHTER] SO IT'S A GOOD SIGN, RIGHT? BUT I DIDN'T REALIZE HE GRADUATED VALEDICTORIAN UNTIL I WENT BACK AND READ HIS RESUME.

I ASSUME THAT'S TRUE, RIGHT? [LAUGHTER] SO WHICH WE DO FACT TO FACT CHECK HERE.

DAVID HIGHTOWER IS A GENTLEMAN THAT HE JOINED OUR TEAM ABOUT TEN YEARS AGO, BUT HE'S PROBABLY THE FINEST CIVIL ENGINEER ON THE DEVELOPMENT SIDE IN HOUSTON.

HE'S DEVELOPED HUNDREDS OF THOUSANDS OF ACRES, AND HE ACTUALLY IS A VERY PRACTICAL ENGINEER AND HAS AN OPPORTUNITY TO LOOK AT THINGS THAT PEOPLE DO AND SAY, OKAY, THAT'S WE'RE SPENDING WAY TOO MUCH MONEY ON THAT TO ACCOMPLISH THE TASK.

AND YOU'LL SEE HIM AROUND HERE.

ANNA DEANS, SHE'S ANOTHER ONE OF OUR INVESTMENT MANAGERS.

SHE'S OUR CUSTODIAN OF TASTE.

SHE HAS IMPECCABLE TASTE.

AND SHE TELLS US WHEN, NO, THAT'S NOT WHAT WE WANT TO DO.

AND THEN ON THE RIGHT SIDE, YOU SEE ROB SIGLER AND BRETT AND THESE ARE TWO GUYS.

ROB RUNS OUR CONSTRUCTION GROUP.

WE'RE NOT GENERAL CONTRACTORS, BUT WE OVERSEE EVERYTHING THAT GOES ON, ON THE PROPERTY WE DON'T TRUST. I SHOULDN'T SAY WE DON'T TRUST CONTRACTORS.

WE JUST WANT TO ASSURE WHAT THEY TELL US THEY'RE DOING THEY ACTUALLY DO.

AND THAT TEAM OVERSEES THAT.

AND THEN THERE'S ANOTHER GENTLEMAN WITH ME TONIGHT, ANDY ICKEN, WHO WHO'S JUST RECENTLY RETIRED FROM THE CITY OF HOUSTON.

HE WAS A CHIEF DEVELOPMENT OFFICER IN HOUSTON FOR THE LAST 18 YEARS.

AND I ASKED ANDY, I'VE KNOWN ANDY FOR 15 YEARS AS A FRIEND, AND HE'S TOO YOUNG TO RETIRE.

AND I SAID, ANDY, I SAID, YOU KNOW, WE'RE DOING A LOT OF THINGS AROUND THE STATE AND WORKING WITH A LOT OF MUNICIPALITIES AS A CHIEF DEVELOPMENT OFFICER, HE KNOWS WHERE THERE'S BUCKETS THAT YOU CAN TAP INTO AND HOW TO GET THINGS DONE FINANCIALLY.

AND SO I'VE ASKED ANDY TO JOIN US ON SOME PROJECTS WE'RE DOING OUT OF TOWN AS A CONSULTANT.

AND SO, ANDY, THANK YOU FOR BEING WITH US.

YOU ALL WILL SEE HIM.

BUT OUR TEAM IS WITHIN MIDWAY.

WE HAVE TWO COMPANIES, MIDWAY AND PARKWAY.

PARKWAY IS THE OPERATIONS SIDE OF THE ASSET SIDE.

SO IF WE BUILD SOMETHING, PARKWAY IS THE OPERATING GROUP.

THE MIDWAY SIDE IS THE DEVELOPMENT SIDE.

THERE'S PROBABLY 250 PEOPLE BETWEEN THE TWO.

THERE'S PROBABLY 30 WITHIN THE BOUTIQUE SIDE OF THE DEVELOPMENT COMPANY.

YOU KNOW, THIS GOES BACK TO FIRST QUESTION.

HOW MUCH TIME DO YOU WANT ME TO SPEND DOING THIS? I DON'T WANT TO.

I DON'T WANT TO GIVE YOU MORE THAN YOU WANT TO KNOW, BUT.

VERY INFORMATIONAL, BUT I THINK THE RESIDENTS THEY WANT TO GET MAKE SURE THAT WE ARE ON THE SAME PAGE AND WHAT WE WANT TO SEE THERE AND REACH THE SAME GOALS THAT WE WANT FOR THIS DEVELOPMENT.

SO HITTING THE IMPORTANT HIGHLIGHTS.

OKAY. WELL, I'LL KEEP THAT IN MIND.

THE WELL, THIS IS THE POINT JUST TO THAT POINT ON THE VISION SIDE, YOU KNOW, WHAT DOES THE CITY OF BEDFORD WANT? WHAT HAVE YOU ALL STUDIED IN THE PAST THAT TOLD YOU WE'RE GOING TO GO BACK AND REVIEW ALL THESE THINGS AND ON THE RIGHT SIDE, YOU CAN KIND OF SEE SOME CATEGORIES THAT WE WENT THROUGH, SOME LITERATURE AND THINGS THAT YOU ALL HAVE TALKED ABOUT IN THE PAST THAT ARE PUBLIC RECORD.

WE JUST LOOKED AT WHERE THAT MET IN.

IF YOU LOOK AT THAT LITTLE DIAGRAM WE WANT TO TAKE WHERE THE CITY OF BEDFORD AND THE PUD AND THE MIDWAY WERE, THE VISION ALL COMES TOGETHER.

WE WANT TO HIT THE MIDDLE OF THAT STAR.

BUT AS YOU GO THROUGH THIS FIRST AND FOREMOST, WE WANT TO LISTEN TO THE STAKEHOLDERS.

I MEAN, I DON'T LIVE IN BEDFORD.

I LIKE VISITING BEDFORD, BUT I DON'T LIVE HERE.

YOU KNOW, Y'ALL NEED TO TELL ME WHAT Y'ALL WANT.

AND THIS KIND OF GOES THROUGH SOME THINGS THAT WE THINK ARE IMPORTANT, YOU KNOW? SO, YOU KNOW, JUST KIND OF WALKING THROUGH IT.

WE MEET WITH THE PUBLIC OFFICIALS.

WE TRY TO FIGURE OUT WHAT'S IMPORTANT TO THE CITY.

THEN WE TALK TO THE COMMUNITY LEADERS.

WE DO A LOT OF THAT, AND Y'ALL ARE PART OF THAT GROUP.

THEN WE MEET WITH THE COMMUNITY AND THESE AREN'T JUST ONE TIME, 30 MINUTE MEETINGS.

WE GET ENGAGED TO HEAR FROM YOU.

THANK YOU VERY MUCH. THEN WE YOU KNOW, WE LOOK THIS FAR, RIGHT ONE.

WE LIKE TO DO A LOT OF PUBLIC ART.

WE LIKE WE THINK IT'S INSPIRATIONAL FOR KIDS.

WE LIKE TO DO THAT WITHIN OUR PROJECTS WHERE WE CAN.

IT DOESN'T HAVE TO BE EXPENSIVE.

IT'S JUST BEING THOUGHTFUL.

SO WE TRY TO FIGURE GAUGE THE COMMUNITY'S APPETITE FOR THAT.

THEN WE TRY TO INFUSE THE DEVELOPMENT WITH THE ARCHITECTURAL FOR THIS REGION.

WE'RE NOT GOING TO TRY TO DRAG IN MIAMI AND MAKE IT LOOK IN BEDFORD.

WE'RE GOING TO MAKE THIS THING LOOK LIKE IT SHOULD IN BEDFORD.

YOU KNOW, WE INCORPORATE INSPIRATION YOU KNOW, WE HEAR YOU HAVE A BEAUTIFUL PIECE OF PROPERTY WITH SOME NATURAL RAVINES THAT ARE JUST GOING TO MAKE IT REALLY NICE.

YOU CAN SEE THE PICTURE UP TOP.

AGAIN, THIS IS JUST INSPIRATIONAL.

BUT, I MEAN, YOU CAN MAKE IT VERY SIMPLE AND COST EFFECTIVE AND VERY NICE OR YOU CAN REALLY SPEND A LOT OF MONEY TO MAKE A TAILORED LAKE.

WHICH ONE IS IMPORTANT? YOU KNOW, WE'VE DONE BOTH.

[00:45:01]

BOTH OF THEM HAVE THEIR PLACES.

YOU KNOW YOU DON'T HAVE TO SPEND MONEY JUST TO SPEND MONEY.

AND THEN FIRST, FINALLY, WE WANT TO MAINTAIN THE HERITAGE.

I MEAN, BEDFORD HAS A HISTORY.

WE WANT TO RESPECT THAT AND LEARN MORE ABOUT WHAT THAT IS AND MAKE SURE WE PAY HONOR TO IT.

DESIGN AND PLANNING.

YOU KNOW, WE SPENT SOME TIME WITH YOUR ENGINEER, MCADAMS, AND THEY'RE A GOOD FIRM AND LEARNED A LOT.

WE DON'T KNOW EVERYTHING YET.

WE'RE GOING TO SPEND A LOT OF TIME ON THIS.

THIS IS JUST THE PROPERTY OUTLAID HERE.

AND, YOU KNOW YOU KNOW, YOU HAVE THREE FACILITIES ON THIS PROPERTY.

IN MY OPINION.

YOU KNOW, THESE WERE PROBABLY DONE WHEN THIS WAS CONSIDERED MORE SUBURBAN AREA.

WELL, IT'S NOW MORE SUBURBAN AREA.

IT'S NOT SUBURBAN, IT'S NOT URBAN.

IT'S SUBURBAN. AND, YOU KNOW, THOSE ARE PRETTY BIG LAND HOGS FOR THINGS OR THESE BUILDINGS.

WHERE ARE YOU ALL IN THE LIFE SPAN OF THESE BUILDINGS? ARE THESE SOMETHING WE SHOULD TAKE INTO OUR PLANT? WE DON'T KNOW YET. YOU KNOW, THOSE ARE THE KIND OF QUESTIONS WE ASK BECAUSE IT CHANGES THE PLAN.

THE FIRE STATION UP TOP.

BEAUTIFUL BUILDING.

IS THAT THE BEST PLACE FOR A FIRE DEPARTMENT? YES OR NO? IT DOESN'T MATTER.

BUT WHAT I SEE IS YOUR LIBRARY BACK UP THERE TO THE LEFT.

TOTALLY DISCONNECTED FROM THIS NEW THING CALLED BEDFORD COMMONS.

AND IT'D BE NICE TO HAVE THIS GREEN SPINE CONNECT THOSE TWO THAT IS VERY WALKABLE SO THAT YOU KNOW YOUR BEDFORD COMMONS KIND OF BLEEDS OUT INTO THE AREA.

SO THAT'S THE KIND OF THINGS THAT WE'RE GOING TO STUDY OVER THE NEXT FEW MONTHS TO LEARN EXACTLY WHAT YOU ALL WANT TO DO AND THEN TAKE EXPERIENCES WE HAVE, YOU KNOW, THESE ARE JUST INSPIRATIONAL. DON'T PUT A LOT OF THOUGHT ON THESE.

BUT, YOU KNOW, THE SCALE OF WHAT WE'RE DOING IN THE BUILDING MATERIALS, YOU KNOW, IT NEEDS TO FEEL RIGHT.

AND IF THERE'S A RESIDENTIAL COMPONENT, HOW DOES IT FEEL? HOW DOES IF THERE'S A PUBLIC CIVIC SIDE, HOW DOES IT FEEL? YOU KNOW, I DON'T SEE DOING ANYTHING OF HUGE SCALE HERE BECAUSE IT JUST WOULDN'T FIT INTO THE ENVIRONMENT PROPERLY.

YOU KNOW, THESE ARE JUST INSPIRATIONS.

AGAIN, WE GO BACK TO THE PARKS AND THE GREEN SPACE EXECUTION, DEVELOPMENT.

THIS IS PROBABLY MORE THAN YOU WANT TO KNOW.

THIS I CAN LEAVE THIS WITH YOU.

SO IF SOMEBODY WANTS TO LOOK AT IT IN MORE DETAIL, FEEL FREE JUST TO ASK THEM.

THEY CAN PASS IT ON. BUT AND AGAIN, JUST AGAIN, STUDYING THE AREA AND LEARNING WHAT'S IMPORTANT HERE, YOU KNOW, I KNOW YOU ALL ARE IN THE NEIGHBORHOOD TO THE EAST, AND THIS IS ONE OF THE FIRST STREETS WE WALKED DOWN WHEN I CAME UP HERE.

AND AS I STARTED ON THE SOUTH AND STARTED GOING NORTH, I SAID, YOU KNOW, THIS COULD BE SO MUCH BETTER, YOU KNOW? AND WE HAD CONVERSATIONS BECAUSE I KNEW YOU WERE GOING TO DO SOME WORK ON THAT STREET.

AND WE STARTED TALKING ABOUT SIDEWALKS AND HOW CARS MARRY INTO THAT, AND HOW DOES LIGHTING WORK AND HOW THE TREES WORK, BECAUSE WHATEVER GETS DONE ON THIS SITE NEEDS TO FEATHER BACK INTO THE NEIGHBORHOOD.

IT DOESN'T NEED TO BE AN ABRUPT CHANGE.

YOU KNOW, MY PERSONAL VIEW I SEE RESIDENTIAL FACING BACK TOWARDS YOU THERE, WITH MAYBE ANOTHER SIDE FACING BACK INTO THE PARK AREA THAT'S VERY WALKABLE SO THAT YOU HAVE A NATURAL TRANSITION.

YOU KNOW, I WAS A LITTLE DISAPPOINTED THAT YOUR ENTRANCE WASN'T ON THAT SIDE BECAUSE I THINK IT WOULD BE PRETTY COOL LONG TERM TO HAVE YOUR ENTRANCE GOING RIGHT INTO THERE.

BUT EITHER WAY, WE CAN MAKE IT VERY WALKABLE BETWEEN THE TWO.

BUT I WAS GLAD TO SEE I MEAN, I DON'T KNOW WHEN THAT NEIGHBORHOOD WAS DEVELOPED, BUT YOU ALL MAINTAINED IT EXTREMELY WELL, AND IT'S OBVIOUS YOU'LL TAKE A LOT OF PRIDE IN IT. SO WE'RE GOING TO SEEK A LOT OF INFORMATION FROM YOU ALL AS WE GO THROUGH THIS YOU KNOW, SHAREHOLDER STAKEHOLDER ENGAGEMENT.

AND AGAIN, THIS IS JUST HOW WE DO PROJECTS AND HOW WE MEET WITH PEOPLE.

EVERY ONE OF OUR PROJECTS, WE DO A THING CALLED MIDWAY WORKS, AND IT'S NOTHING MORE THAN A JOB FAIR.

BUT WHEN WE DO SOMETHING, WE GO TO OUR TENANTS ARE ALWAYS LOOKING FOR EMPLOYEES.

THERE'S A LOT OF PEOPLE THAT LIVE IN AREAS.

AND SO WE TRY TO CONNECT THE TWO.

SO IF YOU LIKE LIVING HERE AND YOU LIKE WORKING HERE, LET'S PUT YOU TOGETHER.

YOU KNOW, THERE'S NO REASON TO COMMUTE HALFWAY ACROSS TOWN.

WE'VE GOT GREAT JOBS HERE.

SO WE GET INVOLVED AT THAT GRANULAR LEVEL IN OUR PROJECTS.

THIS AGAIN IS JUST KIND OF HOW WE WORK THROUGH PROJECTS.

WE HAVE A VISION SESSION.

WE PLAN, WE IDENTIFY, WE EVALUATE, WE COME BACK AND WE SELECT.

THEN WE MOVE FORWARD.

YOU KNOW, THERE'S A LOT OF THINGS THAT YOU ALL MIGHT TELL ME YOU WANT TO DO THAT MIGHT NOT BE ECONOMIC.

YOU MIGHT SAY, WE WANT THIS.

WELL, I MIGHT NOT BE THE ONE SAYING THAT WON'T WORK HERE, YOU KNOW, BASED ON CURRENT ECONOMICS, BUT THERE'S WAYS THAT YOU CAN PRIORITIZE THINGS, THAT YOU CAN MAKE THINGS ECONOMIC THAT MIGHT NOT BE.

I MEAN, YOU ALL MIGHT WANT A COFFEE SHOP.

COFFEE SHOP GUY MIGHT NOT BE ABLE TO AFFORD A COFFEE SHOP THERE, YOU KNOW.

BUT AT THE SAME TIME, IF WE ALLOCATE AND DISTRIBUTE, WE'RE HOW WE GET THAT COFFEE SHOP BUILT.

MAYBE WE CAN GET IT DONE.

IT MIGHT JUST BE SUBSIDIZED IN SOME FASHION BY OTHER COMPONENTS OF THE PROPERTY.

[00:50:05]

SO WE WORK THROUGH THAT IN THE ECONOMIC SIDE AND WE SELECT AND WE MOVE FORWARD.

FINANCIAL PERFORMANCE EVERYTHING WE DO IS A SINGLE ASSET ENTITY.

WE DON'T CROSS-COLLATERALIZED ANYTHING.

SO NO TWO PROJECTS ARE EVER TIED.

AND WE LEARNED DURING COVID THAT THAT'S VERY IMPORTANT BECAUSE PROJECTS PERFORM VERY DIFFERENTLY DURING COVID, AND WE KEEP THEM ALL SEPARATED FOR LIABILITY PURPOSES.

AGAIN, THIS IS JUST MORE INFORMATION ON THE RIGHT HAND SIDE OF SOME OF THE PARTNERS WE'VE HAD OVER THE YEARS.

OUR PARTNERS INCLUDE PEOPLE LIKE THE STATE OF ALASKA THEIR RETIREMENT FUND, MICHIGAN STATE PENSION FUND, DALLAS FIRE AND POLICE IS ONE OF OUR INVESTORS. YOU KNOW, SO WE HAVE INVESTORS THAT ARE VERY LONG TERM IN NATURE BECAUSE WE LIKE TO BE INVOLVED IN PROJECTS LONG TERM.

WE'RE NOT A MERCHANT BUILDER WHERE WE BUILD SOMETHING AND JUST FLIP IT.

WE LIKE TO STAY INVOLVED FOR THE LONG TERM.

SUSTAINABILITY, YOU KNOW, EVERYTHING WE DO IS WITH AN ESG BENT.

THAT PICTURE ON THE RIGHT OUT AT EAST RIVER, WE CREATED A TREE FARM BECAUSE WE HAD 150 ACRES, AND WE'RE GOING TO PUT IN THOUSANDS OF TREES OVER TIME.

SO WE JUST STARTED GROWING OUR OWN THERE.

WE'RE VERY SERIOUS ABOUT THIS.

I MEAN, LIKE, YOU SEE THAT LITTLE WATER AREA ON THE LEFT? THAT'S A DRAINAGE FOR THAT NEXT BUILDING, BUT IT'S LANDSCAPED.

YOU'LL PROBABLY SEE A LOT OF THAT STUFF HERE.

IT'S JUST MORE NATURAL.

CLOSING APPENDICES.

YOU KNOW, THIS IS JUST WE'VE DONE THIS HUNDREDS, IF NOT THOUSANDS OF TIMES.

AGAIN, WHAT I'M EXCITED ABOUT THIS PROJECT IS YOU HAVE THE CANVAS, YOU HAVE A VERY PRETTY CANVAS.

AND I THINK WE CAN CAMPAIGN ON THIS CANVAS AND CREATE SOMETHING REALLY SPECIAL.

THERE'S A LOT OF PLACES THAT DON'T HAVE CANVASES, AND THEY BRING IN AND SAY, WE WANT TO DO THIS.

YOU KNOW, IT AIN'T GOING TO WORK.

YOU KNOW, HERE I THINK YOU'VE GOT A DESIRE TO DO IT RIGHT.

I THINK COLLECTIVELY WE CAN GET YOU EXACTLY WHAT YOU WANT.

I THINK AT THE END OF THE DAY, YOU'LL BE VERY PROUD OF WHAT WE'VE DONE.

I KNOW WE WILL.

WE WON'T DO ANYTHING WRONG.

WE'D RATHER NOT DO IT THAN DO IT WRONG.

AND SO WE'LL TELL YOU, IF Y'ALL WANT TO DO SOMETHING, IT'S NOT GOING TO WORK.

WE'LL SAY, GUYS, RESPECTFULLY, THAT'S NOT GOING TO WORK.

BUT I THINK WORKING TOGETHER AND LEARNING WHAT Y'ALL WANT TO ACCOMPLISH AND HOW YOU WANT ALL THIS TO FEEL TOGETHER THAT'S WHAT WE DO AND WE TAKE GREAT PRIDE IN IT.

WE'RE VERY PASSIONATE ABOUT IT.

I THINK YOU CAN TELL BY JUST HOW I'M VISITING ABOUT THIS.

WE TAKE WE'RE PASSIONATE ABOUT EVERYTHING WE GET INVOLVED IN AND I'M EXCITED FOR THIS.

SO, YOU KNOW, IF THERE'S ANY QUESTIONS I'D BE HAPPY TO ANSWER.

ANDY AND JOSH CAN ANSWER TOO.

BUT YEAH, ABSOLUTELY.

NO THANK YOU. THANK YOU FOR THAT.

I KNOW WE PROBABLY HAVE A BUNCH OF QUESTIONS BECAUSE I KNOW, LIKE EVERYONE UP HERE, THIS PROJECT, PROBABLY UNLIKE MANY OTHERS, IS ONE THAT IS IT'S WHAT EVERYBODY WANTS TO GET DONE.

WE'VE BEEN TALKING ABOUT THIS PROJECT FOR WELL OVER A DECADE.

I KNOW THAT IS MY MAJOR PRIORITY IS MAKING SURE WE GET THIS DONE AND GETTING IT DONE RIGHT.

AND SO ONE OF THE COMMENTS THAT YOU MENTIONED WAS, IF WE MISS IT BY AN INCH, WE MISS BY A MILE.

SO THAT TELLS ME THAT YOU ARE COMMITTED TO MAKING SURE THAT WE GET THIS RIGHT.

YES, SIR. SO WITH THAT, YOU KNOW, THIS ONE I DID SAY IT'S VERY CONTROVERSIAL.

THE HISTORY OF THIS PROPERTY, I GO YOU GO BACK SIX YEARS AGO AND, YOU KNOW, I DON'T WANT TO, YOU KNOW, BRING UP SOME OLD THINGS THAT HAPPENED.

BUT LET'S JUST SAY THAT A MAJORITY OF THAT PROPERTY WAS GOING TO BE USED FOR MULTIFAMILY HOUSING.

AND RIGHTFULLY SO THE RESIDENTS WERE NOT OKAY WITH THAT.

AND SO WHEN I REFERENCED BEFORE ABOUT PEOPLE COMING TO A COUNCIL MEETING AND KEEPING COUNCIL THERE UNTIL 3:00 IN THE MORNING, THAT IS THE REASON.

AND SO FOR YOU, OBVIOUSLY, LET ME ASK YOU THIS WITH THESE TYPES OF DEVELOPMENTS A LOT OF PEOPLE WOULD LIKE TO SEE IT JUST STRAIGHT COMMERCIAL, THOUGH I KNOW THAT FROM WHAT MY EXPERIENCE IS DEALING WITH THIS, THERE'S ALWAYS HAS TO BE A RESIDENTIAL COMPONENT TO IT.

AM I WRONG IN THAT ASSUMPTION? WELL NO, YOU'RE NOT WRONG.

BUT IF YOU TRULY WANT TO CREATE A MIXED USE ENVIRONMENT, YOU HAVE TO HAVE AT LEAST 3 OR 4 DIFFERENT USES.

OKAY. AND USUALLY RESIDENTIAL FALLS IN THERE.

AND YOU HAVE FOR SALE RESIDENTIAL AND YOU HAVE FOR RENT RESIDENTIAL.

AND WHAT I THINK, YOU KNOW, I'M THE AGE OF A LOT OF Y'ALL HERE.

THE RESIDENTIAL MULTIFAMILY APARTMENTS USED TO BE DIRTY WORDS BECAUSE IT WAS MAINLY TRANSIENT.

IT STILL IS IN BEDFORD.

WELL, I'M JUST GOING TO GIVE YOU THAT NOW.

WELL. I'M GOING TO GIVE YOU THAT RIGHT NOW. NO, BUT THAT'S OKAY.

BUT IT'S CHANGED.

I MEAN, USED TO A LOT OF TIMES YOU LIVED IN AN APARTMENT BECAUSE YOU HAD NO OTHER CHOICE.

[00:55:03]

IN TODAY'S WORLD, WE HAVE RENTERS BY CHOICE.

WE HAVE RENTERS THAT CAN GO LIVE ANYWHERE THEY WANT TO, BUT THEY CHOOSE TO LIVE IN A MULTIFAMILY PROJECT FOR WHATEVER REASON.

AND THEY'VE LIVED THERE FOR YEARS.

THEY JUST DON'T CARE TO MAKE THE INVESTMENT IN A HOME.

AND I DON'T KNOW IF THAT'S BECAUSE THEY SAW THEIR PARENTS HAVE A HOME THAT WENT THROUGH A CYCLE AND THEY LOST THEIR EQUITY AND IT DIDN'T WORK OUT, OR THEY SAW INTEREST RATES GO UP REAL HIGH AND IT DIDN'T WORK OUT.

BUT FOR WHATEVER REASON, THEY BECOME TENANTS BY CHOICE.

AND IF WE DO MULTIFAMILY OR IF WE SUGGEST MULTIFAMILY IN HERE, IT WOULDN'T BE BIG.

AND IT SURE WOULDN'T BE PRICED FOR SOMEBODY THAT'S LOOKING FOR CHEAP HOUSING.

OKAY, SO IT'S A DIFFERENT I'M GONNA BE STRAIGHT WITH YOU BECAUSE I THINK WE SHOULD BE UP FRONT IN OUR NEGOTIATIONS.

THAT IS WHEN IT COMES TO THIS, YOU SAY IT'S NOT A DIRTY WORD, BUT IN BEDFORD, IT TRULY IS.

AND QUITE FRANKLY, I KNOW, AND I SPEAK FOR THE RESIDENTS WHEN I SAY MULTI-FAMILY HOUSING IS A NO GO FROM THE BEGINNING.

AND I'M NOT GOING TO HAVE, YOU KNOW, LET'S I'M JUST BEING COMPLETELY UPFRONT.

NO, NO, THAT'S WITH YOU. THAT'S THE KIND OF INFORMATION WE NEED TO KNOW.

BUT YOU DON'T NEED MULTIFAMILY FOR THIS PROJECT TO BE SUCCESSFUL.

OKAY. I WOULD SAY AT THE END OF THE DAY, IT WOULD BE MORE SUCCESSFUL IF YOU DID BECAUSE IT CREATES A RESIDENT THAT CARES ABOUT WHERE THEY LIVE.

AND SO AND RESIDENTIAL COMPONENTS.

DO YOU SEE YOURSELF TOWNHOMES, OWNER OCCUPIED TOWNHOMES.

I THINK OWNER OCCUPIED TOWNHOMES ARE VERY IMPORTANT HERE OKAY.

I THINK, YOU KNOW SINGLE FAMILY DETACHED I THINK ARE YOU KNOW, SOMETIMES TOWNHOMES ARE TOGETHER.

CORRECT. DETACHED IS WE DO A LOT OF NEIGHBORHOODS LIKE THAT.

I WOULD GUESS THAT YOU HAVE A POPULATION HERE THAT'S PROBABLY HAS RAISED THEIR KIDS IN THEIR HOME AND THEY'RE LOOKING FOR TO SIZE DOWN A LITTLE BIT, TO HAVE A LITTLE BIT MORE LOCK AND LEAVE MENTALITY AND NOT MOW THEIR YARD EVERY SATURDAY AND WANT SOMEBODY ELSE TO DO IT.

I WOULD SAY THAT COMPONENT PROBABLY EXISTS IN HERE.

I WOULD THINK PEOPLE THAT WANT TO STAY IN THE COMMUNITY, BUT THEIR HOUSE ISN'T.

IT WAS RIGHT FOR ONE SEASON, BUT IT MIGHT NOT BE RIGHT FOR THIS SEASON.

YOU KNOW, YOU TALK ABOUT COMMERCIAL.

CANDIDLY, THIS ISN'T A COMMERCIAL TRACK.

IT DOESN'T HAVE THE TRAFFIC FLOW.

IT DOESN'T HAVE THE EXPOSURE.

I THINK THERE'S SOME DESTINATION RETAIL COMMERCIAL THAT WOULD WORK HERE.

OKAY. BUT IT HAS TO BE THE KEYWORDS DESTINATION.

YOU'RE GOING TO HAVE TO SAY, I WANT TO GO THERE BECAUSE YOU'RE JUST NOT.

AND THAT WAS THE WHOLE THING ABOUT THIS PROJECT.

THE THING ABOUT MIXED BEDFORD COMMONS SPECIAL IS PROXIMITY TO THE FREEWAYS.

BUT THE IDEA IS TO GET PEOPLE OFF THE FREEWAY, DISCOVER THIS UNIQUE EXPERIENCE, DISCOVER THIS DESTINATION, AND DISCOVER BEDFORD.

RIGHT. AND AND I THINK DESTINATION RETAIL WILL WORK HERE.

AND I THINK IF WE CREATE THE ENVIRONMENT, IF YOU PUT THE IF WE DO THE GREEN SPACE PROPERLY.

I THINK YOU CAN CREATE AN ENVIRONMENT THAT WILL BECOME DESTINATION RETAIL.

AND ONE OF THE THINGS THAT Y'ALL DO VERY WELL THAT I'VE JUST SEEN ON YOUR WEBSITE AND JUST HEARD AND READ ABOUT YOU ALL, DO SOME FABULOUS EVENTS WHERE YOU'RE BRINGING PEOPLE IN. CORRECT. WELL, YOU GET THEM EXPOSED TO THAT ONCE OR TWICE A YEAR, THEN THEY KNOW THAT THAT'S A PLACE THEY CAN GO DO THAT.

THAT'S GOOD. BUT THEN AGAIN, WE HAVE A BALANCING ACT BECAUSE AS NEIGHBORS, YOU DON'T WANT A FERRIS WHEEL NEXT DOOR TO YOU, YOU KNOW? [LAUGHTER] AND SO WE GOT TO BALANCE, LIKE, WHAT DO YOU REALLY WANT TO HAVE NEXT DOOR TO YOU? AND HOW CAN WE ATTRACT THAT IN WE'RE DONE BECOME A NUISANCE OVER TIME.

AND SO AND EVERY BUSINESS EVOLVES.

I MEAN, WHAT STARTS OUT AS, I MEAN, WE DO TEN YEAR LEASES FOR A REASON BECAUSE THE BUSINESS HAS CHANGED AND WE GOT TO GET THAT NEXT BEST THING.

SO I DON'T THINK MULTIFAMILY IS NECESSARY TO MAKE THIS WORK.

I WOULD HOPE THAT OVER TIME.

AND Y'ALL, AS Y'ALL CREATE TRUST IN ME, YOU'LL AT LEAST LISTEN TO THE ARGUMENT, BECAUSE WE MIGHT COME BACK TO YOU AND SAY, GOSH, I WISH YOU'D DO 80, 90, 140 UNITS, SOMETHING LIKE THAT.

NOT A 350, BUT JUST TO KEEP THAT.

AND I WOULD HOPE THAT WE'D EARN YOUR TRUST WHERE YOU AT LEAST LISTEN TO THAT CONVERSATION.

I'M NOT SAYING IT NEEDS TO BE DONE.

I'M NOT SAYING IT'S PART OF OUR DEAL, BUT TO INTELLIGENTLY EVALUATE THIS PROPERTY, WE NEED TO LOOK AT ALL OPTIONS.

AND I DON'T THINK WE'D SERVE YOU RIGHT IF WE WEREN'T GIVING YOU ALL OPTIONS.

AND SO. BUT I DO THINK SINGLE FAMILY RESIDENTIAL IS GREAT.

I THINK, YOU KNOW, IF YOU DO SOMETHING WITH YOUR COMMUNITY STUFF HERE, IF WE CAN FIGURE OUT HOW TO TIE THIS BACK TO THE LIBRARY AND CREATE SOME PEDESTRIAN FLOW.

YOU MENTIONED THAT THAT'S ONE OF THE THINGS THAT, YOU KNOW, WE HAVE TO CONNECT BECAUSE THERE'S A LOT OF EVENTS THAT HAPPEN RIGHT THERE AT THE PROPERTY, THE OBS OLD BEVERAGE SCHOOL PROPERTY, AND THEN ALSO OUR LIBRARY.

SO TYING EVERYTHING TOGETHER, MAKING IT WALKABLE THAT'S KEY TO THIS PROJECT AS WELL.

AND I MEAN, THE PARK THAT Y'ALL DID, WE DROVE IT WITH THE YMCA UP THERE.

[01:00:04]

I MEAN, THAT'S FABULOUS.

YOU KNOW, THOSE ARE TOO FAR APART TO EVER CONNECT THAT.

BUT THE WAY IT WORKS, I THINK IS GREAT.

AND I THINK Y'ALLS COMMUNITY CAN GET KNOWN FOR THAT TYPE OF DEVELOPMENT OVER TIME.

SO LET ME ASK YOU THIS.

SO YOU SAID BLANK CANVAS.

SO WHAT ATTRACTED YOU TO OUR SITE WAS CAN YOU ELABORATE MORE ON THAT? WELL, WHAT ATTRACTED ME THE MOST WAS THE GREEN SPACE.

OKAY. BECAUSE I THINK YOU HAVE A REAL OPPORTUNITY TO TAKE SOMETHING THAT'S JUST REALLY, REALLY RAW RIGHT NOW AND MAKE IT REALLY ENGAGING.

AND AND YOU'RE NOT THAT FAR FROM BEING ABLE TO DO THAT.

BUT AGAIN, IN MY OPINION I'VE SEEN SOME OF THE EARLY DRAWINGS, ENGINEERING DRAWINGS, AND THEY'RE PRETTY HARSH. I MEAN, SOME OF THE RETAINING WALL.

I'D LIKE TO LOOK AND FIGURE OUT HOW YOU SOFTEN THAT SO IT'S NOT SO IT NEEDS TO LOOK MORE NATURAL THAN.

CORRECT. ARTIFICIAL.

THAN ARTIFICIAL. AND AND THEN HOW YOU ABUT UP TO THAT AND HOW YOU DRAW OTHER THINGS TO IT.

YOU KNOW. AND THEN HOW MUCH COMMERCIAL DO YOU REALLY NEED? I MEAN, IS PART OF THE THING IS WHAT IS YOUR OBJECTIVE AT THE END OF DAY? ARE YOU TRYING TO CREATE TAX REBATES? OKAY. THEN WE GOT ONE RULE.

IF YOU'RE TRYING TO CREATE SALES TAX, IF THAT'S A MAJOR DEAL, IT MIGHT NOT HAPPEN ON THIS SITE.

I MEAN, YOU'RE BETTER OFF WITH H-E-B THAT'S GOING TO GENERATE 15,000 TIMES MORE THAN WE CAN EVER DO.

THANK YOU FOR THE PLUG. NO, NO.

[LAUGHTER] BUT SERIOUSLY, H-E-B WILL DO MORE THAN I CAN EVER EVEN DREAM ABOUT DOING THERE NO MATTER WHAT I DID.

GOTCH YOU. SO WHAT IS THE OBJECTIVE AND HOW DO WE GET THERE? WHEN I VIEW IT, I LOOK AT THIS COULD BE THE HEARTBEAT OF THIS COMMUNITY.

YES. AND WHAT BEDFORD IS KNOWN FOR AND WHY PEOPLE COME TO BEDFORD THAT LIVE IN THE SURROUNDING COMMUNITIES.

THEY COME HERE FOR SOMETHING SPECIAL THAT THEY CAN'T GET IN THEIR OWN COMMUNITY.

YEAH, IT'S MAKE IT SPECIAL AND GIVE US THAT DOWNTOWN FEEL THAT WE THAT WE HAVE MISSING IN THE CITY.

THAT'S I THINK YOU KNOW UNFORTUNATELY OFFICE IS IN A REAL STRANGE PLACE TODAY.

BUT I THINK THERE'S SOME LEVEL OF COMMUNITY OFFICE THAT WOULD WORK WELL IN THERE.

YOU KNOW, I WAS TALKING TO SOMEBODY EARLIER AND THEY WERE TALKING ABOUT THE FOOTBALL TEAM HAS THEIR TEMPORARY OFFICES HERE.

I'M THINKING, WHY NOT PERMANENT? YOU KNOW, YOU KNOW, YOU KNOW, THEY PROBABLY DON'T TAKE BUT 5000FT.

BUT THAT'D BE KIND OF A COOL LITTLE THING.

YES. THEY CAN BLEED OUT INTO THE COMMON AREAS.

THEY COULD HAVE CHEERLEADERS ON GAME DAYS.

AND IT BRINGS THE COMMUNITY.

I MEAN, IT'S THOSE KIND OF TENTACLES THAT WE TRY TO FIND TENANTS THAT CAN DO.

YES. SO. AND SO WOULD YOU, WOULD YOU ALSO SAY YOU'RE EACH ONE OF YOUR DEVELOPMENTS, THEY'RE NOT COOKIE CUTTER.

THEY'RE NOT NOTHING IS THE SAME.

NOTHING IS REDONE, REUSED, RECYCLED INTO ANOTHER DEVELOPMENT.

NO. AND WE TRY TO MAKE EVERYTHING THERE'S NO REASON TO BUILD SOMETHING THAT HAS THIS TENANT BASE WHEN YOU CAN GO GET THAT SAME TENANT BASE FOR, YOU KNOW, FOUR BLOCKS DOWN THE STREET.

NOW, WHAT IS INTERESTING, LIKE IN COLLEGE STATION THEY KIND OF HAVE THIS WE'RE NEVER WORTHY KIND OF MENTALITY.

SO WE BROUGHT MORE NATIONAL TENANTS THERE.

WE BROUGHT THE SEPHORAS AND THE LULULEMON'S AND THE KENDRA SCOTT'S AND THESE PEOPLE, BECAUSE THEY WERE ALWAYS HAVING TO DRIVE SOMEWHERE ELSE TO GET THOSE.

YES. WELL, IN HOUSTON, I DON'T REALLY WANT THOSE.

I WANT THE MORE AUTHENTIC BRANDS THAT ARE MORE GROWN UP BY THE PEOPLE THAT HAVE PASSION ABOUT WHAT THEY'RE DOING.

I'D RATHER THEM OCCUPY IT BECAUSE PEOPLE WILL DRIVE MILES TO COME GET IT.

CORRECT. I MEAN, TO GIVE YOU AN EXAMPLE, AT CITY CENTER ONE TIME P.F.

CHANG'S. I THINK IT'S P.F.

CHANG'S. THAT'S THE ONE WITH THE BIG HORSES OUTSIDE, RIGHT? YEAH. P.F. CHANG'S WAS DYING TO COME THERE, AND.

AND WE WANTED GOOD ASIAN.

SO WE FOUND THIS GROUP OUT OF SAN FRANCISCO CALLED STRAITS THAT JUST DID FABULOUS ASIAN.

AND WE BROUGHT THEM IN, AND THE GUY AT P.F.

CHANG'S SAID, I CAN'T BELIEVE YOU WOULDN'T DO THIS HERE.

AND I SAID, WELL, I'M 12 MILES FROM SUGARLAND.

IF I WANT TO GET THAT ASIAN COUPLE FROM SUGARLAND TO COME UP HERE TO EAT ASIAN FOOD OR WHOEVER COME UP HERE, BUT PEOPLE THAT REALLY UNDERSTAND THE QUALITY LEVEL.

I SAID, THEY'RE GOING TO DRIVE BY THREE P.F.

CHANG'S BEFORE THEY EVER GET TO ME.

WHY WOULD THEY EVER COME HERE? BUT IF WE BRING THE RIGHT GROUP IN, THOSE PEOPLE WILL DRIVE MILES TO COME EXPERIENCE THAT.

SO WHAT I'M HEARING IS WE GOT TO GET THE RIGHT, MAKE THAT RIGHT FIT TO BRING PEOPLE LIKE I MENTIONED BEFORE, NOTHING COOKIE CUTTER, NOTHING THAT THEY CAN GET IN SURROUNDING CITIES. SOMETHING UNIQUE.

YEAH. BUT THEN YOU HAVE TO BE ABLE TO FIND PEOPLE THAT CAN SUPPORT IT AND HAVE A BUSINESS.

YES JUST BECAUSE YOU HAVE A DREAM.

I MEAN, YOU HAVE A BUSINESS, CORRECT? NO, NO NO NO.

IT ALL HAS TO GEL TOGETHER, GEL TOGETHER.

ABSOLUTELY. BUT THAT'S WE WOULD RATHER SEEK OUT THE AUTHENTIC THAN TO SEEK OUT JUST CALLED GO TO ICSC AND BRING THE NEXT PERSON THAT'S WILLING TO SIGN UP.

SO YEAH. YEAH. ONE THING WHAT I LIKE HEARING ABOUT IS THAT YOU MADE A STATEMENT THAT YOU REALLY INVOLVED WITH STAKEHOLDERS.

[01:05:04]

YOU WANT TO MAKE SURE THAT YOU'RE REACHING OUT TO THEM.

OBVIOUSLY, THERE'S A LOT IN THE AUDIENCE TODAY THAT ARE ABUTTING THIS DEVELOPMENT.

SO YOU KNOW, HAVING THEIR INPUT IS GOING TO BE PIVOTAL AS WELL AS WE GO THROUGH THIS PROCESS.

NO, WE'RE VERY PROACTIVE IN THAT SPACE.

LIKE IN WE'RE DOING A SIMILAR DEAL WITH THE CITY OF HUTTO OUTSIDE OF AUSTIN.

THEY'VE ASKED US TO COME TAKE 250 ACRES BECAUSE HUTTO, I DON'T KNOW IF Y'ALL KNOW WHERE THAT IS.

NORTHEAST OF AUSTIN, IT'S 79, RUNS THROUGH, AND IT'S ONE STRIP CENTER AFTER ANOTHER.

AND IT'S GOING TO BE DISASTROUS IF YOU FAST FORWARD 20 YEARS.

AND SO THEY'VE ASKED US TO TAKE 250 ACRES RIGHT THERE IN THE CENTER AND MAKE IT SPECIAL.

WELL, YEAH, WE'RE GOING TO WORK REAL HARD TO MAKE IT SPECIAL.

BUT ONE OF THE THINGS WE'RE DOING IS THEY HAVE THEIR HIPPO FESTIVAL.

NO DIFFERENT THAN Y'ALL'S.

YES. WHICH IS A GREAT NAME.

THE SORRY, I FORGOT IT, BUT WE'LL SET UP A BOOTH THERE AND KIND OF TALK AND JUST TALK TO PEOPLE WHEN THEY COME BY, YOU KNOW, WHAT DOES BEDFORD MEAN TO YOU? WHAT ARE YOU TRYING TO GET HERE? WHAT DO YOU WANT EXACTLY? AND SO WE'LL GET ENGAGED IN THE COMMUNITY.

WE DID IT AT EAST RIVER, WHERE WE'RE ADJOINING THESE TWO COMMUNITIES THAT WERE DIFFERENT THAN WHERE I HAD LIVED BEFORE.

WE SPENT FIVE YEARS WHILE WE WERE DOING THE PLANNING, GETTING INTEGRATED IN THE NEIGHBORHOOD, AND SO THAT THEY UNDERSTOOD THAT WE'RE NOT JUST COMING IN AND GOING OUT.

WE'RE THERE TO DO SOMETHING THAT'S MEANINGFUL FOR THE COMMUNITY.

AND ANDY KNOWS THAT VERY WELL, BECAUSE HE WAS AT THE CITY AT THE TIME.

AND WE JUST YOU KNOW, WE'D SPEND ENDLESS HOURS OUT THERE, YOU KNOW, LEARNING THE COMMUNITY.

SO WE'RE EXCITED ABOUT THIS.

IT'S A GREAT PIECE OF PROPERTY.

THE SIZE OF IT IS BIG ENOUGH THAT YOU CAN CREATE A TRUE DESTINATION.

IT'S JUST WHAT DOES IT NEED TO BE? GOT IT, GOT IT. I'D LIKE TO OPEN UP TO MY FELLOW COUNCIL MEMBERS IF ANYBODY HAS ANY ADDITIONAL QUESTIONS.

COUNCIL MEMBER FARCO.

THE AGGIE. YES THE AGGIE.

AND I'M VERY EXCITED BECAUSE I SAW WHAT YOU DID YEARS AGO WITH CENTURY SQUARE.

AND I BROUGHT I TOLD THAT'S WHAT WE NEED FOR BEDFORD COMMONS HERE, THE SPACE THAT YOU HAD.

BUT AGGIE PARK, THE WAY YOU USED, YOU CLEANED THAT AREA UP.

IT WAS IT'S BEAUTIFUL.

THANK YOU. AND IT'S DONE VERY TASTEFULLY.

I LOVE HOW YOU INCORPORATE IT.

YOU HAVEN'T TAKEN THE HISTORY OR THE TRADITIONAL WAY YOU'VE INCORPORATED AROUND IT AND BROUGHT YOUNG AND OLD TOGETHER.

AND YOU'VE MADE COLLEGE STATION INCREDIBLE.

SO WE THANK YOU FOR THAT. AND I'M EXCITED THAT WHEN ANDREA TOLD ME THAT IT'S A POSSIBILITY THAT YOU WERE WORKING WITH US, I GOT VERY EXCITED.

IN THE CONSTRUCTION INDUSTRY AND SENIOR PROJECTS AROUND AND IT IS IT'S DONE FIRST RATE.

SO THAT'S WHAT WE'RE LOOKING FOR.

WE WANT SOMETHING THAT'S DONE RIGHT.

DONE CORRECT THE FIRST TIME.

AND THAT IT INCORPORATES WHAT OUR CITIZENS WANT.

SO I APPRECIATE YOU GUYS TAKING THE TIME AND VISITING WITH US.

I KNOW, THANK YOU. STEVE.

THE WELL, YOU MENTIONED COLLEGE STATION, BUT I'LL TELL YOU HOW THAT PROJECT GOT STARTED.

REMEMBER, BILL, GATES WAS OUR PRESIDENT A PERIOD OF TIME BEFORE W TOOK HIM BACK TO WASHINGTON TO RUN THE DEFENSE.

HE MADE A COMMENT.

HE MADE THE OBSERVATION WHEN HE BECAME PRESIDENT.

HE SAID, YOU KNOW, I LOVE THIS UNIVERSITY.

HE SAID, BUT WE'VE GOT TO CREATE A TOUCH OF URBANISM HERE BECAUSE WE'RE GETTING PROFESSORS THAT ARE LATER IN THEIR CAREER THAT WANT TO RETIRE HERE AND FINISH THEIR CAREER HERE.

HE GOES, AND WE'RE HAVING TO COMPETE WITH SAN FRANCISCO AND AUSTIN FOR THE YOUNG, BRIGHT MINDS AND THE YOUNG BRIGHT PROFESSORS.

AND IN EDUCATION, THE WORLD IS MOVING A LOT FASTER.

AND HE SAID, WE'VE GOT TO CREATE A PLACE.

AND HE GAVE ME THE EXAMPLE.

HE SAID, YOU KNOW, SOMEBODY COMES UP HERE AND THEY TOUR OUR FACILITIES AND THEY LOVE EVERYTHING WE'RE DOING, AND THEY GO BACK TO THEIR APARTMENT AND THEY CALL THEIR SPOUSE AND THEY'RE ALL EXCITED ABOUT TELLING THEM WHAT, HOW GREAT IT IS.

AND THEY SAID, WELL, WHAT IS IT LIKE? AND HE LOOKS OUT THE WINDOW AND SHE LOOKS OUT THE WINDOW AND GOES, IT'S A PASTOR, YOU KNOW? AND HE SAID, WE GOT TO CREATE A PLACE.

AND SO THAT'S WHY THE HOTELS ARE THERE, AND THAT'S WHAT WE DID.

BUT THE WAY WE MADE THAT WORK IS IF YOU TOOK ALL THAT LAND AROUND THE UNIVERSITY AND SAID, WHAT'S THE HIGHEST AND BEST USE? IT'D BE STUDENT HOUSING.

AND YOU CAN'T COMPETE WITH STUDENT HOUSING WHEN YOU'RE TRYING TO DO A HOTEL OR RETAIL OR RESTAURANTS.

YOU JUST CAN'T. AND SO WHAT WE DID IS WE DO EVERYTHING OPEN BOOK, SO YOU'LL SEE EVERYTHING GOING THROUGH AS MUCH AS YOU WANT TO SEE.

BUT WE BROKE IT DOWN AND SAID, OKAY, WE'RE GOING TO DO RESIDUAL VALUE APPRAISALS.

IF YOU WANT THIS USE, HERE'S ALL WE CAN AFFORD FOR THE LAND.

IF WE CAN AFFORD ANYTHING AT ALL, YOU KNOW, BECAUSE THE ECONOMICS JUST DON'T MAKE IT WORK.

SO LIKE THAT'S HOW WE HAD TO DO THE HOTELS UP THERE, BECAUSE IF WE TRIED TO PAY MARKET PRICE FOR THAT LAND, WE'D NEVER BE ABLE TO AFFORD A HOTEL BECAUSE THE ROOM RATES IN COLLEGE STATION AREN'T SETTING ANY RECORDS.

[01:10:02]

AND SO EXCEPT ON GAME DAY.

EXCEPT ON GAME DAY, THERE'S ONLY IF YOU DO TWO NIGHT MINIMUMS. [LAUGHTER] IT'S ONLY 16 DAYS.

SO, SO BUT SO WE BUT WE BROKE INTO THAT AND EXPLAINED.

SO THIS IS WHAT IT'S GOING TO TAKE, YOU KNOW, HOW DO WE MAKE THIS WORK.

AND SO EVERY PIECE OF PROPERTY UP THERE IS BASED ON THE USE THAT IT HAS.

AND YOU KNOW, OFFICE BUILDINGS, WE HAD TO DO THE SAME THING WITH OFFICE BECAUSE WE WANTED AN OFFICE COMPONENT.

BUT OFFICE RENTS IN COLLEGE STATION WERE $18 GROSS.

WE NEEDED 22 NET TO MAKE THEM WORK.

NOW, WHAT HAPPENED WHEN WE DID IT? WE ATTRACTED THE BEST OF THE BEST.

WE HAVE THE UBS AND THE MORGAN STANLEY'S AND THE BEST ENGINEERING FIRMS THAT WANT TO DO WORK IN COLLEGE STATION BACKFILL.

AND THEY'RE HAPPY TO PAY THOSE RATES BECAUSE THEY PAY THEM OTHER PLACES.

BUT IF WE WENT FOR THE LOCAL COMMUNITY, THEY WOULDN'T AFFORD THEY WOULDN'T DIDN'T WANT TO AFFORD IT.

SO. ALL RIGHT.

THANK YOU. ANY OTHER QUESTIONS? COUNCIL MEMBER CULVER.

I WAS TRYING TO GET MY MIC ON.

THANK YOU. I JUST WANT TO AGAIN RESTATE THIS COMMUNITY THE NIGHT MENTIONED BY MAYOR COGAN.

THIS ROOM WAS FILLED.

STANDING ROOM ONLY THE 3AM ONE I HEARD ABOUT.

THE 3 A.M. ONE.

PEOPLE WERE ACROSS THE STREET.

SO IT'S NOT JUST THIS COMMUNITY THAT'S SITTING HERE TONIGHT.

IT'S BEDFORD AS A WHOLE.

WE HAVE APPROXIMATELY 35 APARTMENT COMPLEXES.

WE ARE ABOUT A 50/50 RATIO BETWEEN APARTMENTS RENTAL VERSUS HOME OWNERS.

WE THINK THAT'S PRETTY SUBSTANTIAL THE WAY IT IS.

I THINK YOU HAVE YOUR WORK CUT OUT FOR YOU.

I DO APPRECIATE THE FACT THAT YOU'RE GOING TO INCORPORATE COMMUNITY EVENTS AND GO OUT AND LISTEN TO THE COMMUNITY TO SEE WHAT THEY WANT.

UNFORTUNATELY, WE ALL WANT THAT NICE DINING RESTAURANT.

BUT TO BE ABLE TO SAY WHETHER OR NOT THE COMMUNITY CAN SUPPORT IT OR NOT, GET THEM TO COME HERE.

AS YOU'VE HEARD TONIGHT, WE'VE WAITED TEN YEARS ALMOST TO HAVE HEB SAY, HEY, WE, YOU KNOW, OUR FUNDING THAT WE WILL PUT INTO THIS BUILDING NOW INTO THIS GROCERY STORE CAN NOW BE SUPPORTED.

WE CAN SEE A FINANCIAL GAIN.

SO IT'S GOING TO BE YOUR WORK IS CUT OUT.

ALSO, WHAT YOU HEAR HERE TONIGHT MAY NOT BE WHAT YOU HEAR WHEN YOU COME BACK AGAIN.

WE'RE IN THE MIDDLE OF AN ELECTION, SO YOU MAY NOT SEE ALL OF THE SAME FACES SITTING UP HERE.SURE.

SO YOU MAY HAVE A WHOLE NEW GAMUT OF ISSUES TO DEAL WITH.

SO JUST BUCKLE UP, BUTTERCUP, AND PUT YOUR ROLLER SKATES ON BECAUSE YOU'RE GOING TO BE IN FOR A RIDE.

[LAUGHTER] NO, NO.

WE'VE WORKED IN A LOT OF COMMUNITIES AND I UNDERSTAND THAT PART OF IT THE AND AGAIN, WE DON'T AND TO KIND OF GIVE YOU A FEEL.

AND I'M NOT PUSHING MULTIFAMILY WITH THIS COMMENT.

THE ONLY PLACE WE DO MULTIFAMILY IS WITHIN OUR DEVELOPMENTS.

WE DON'T BUILD COMMODITY PRODUCTS.

SO I'M NOT GOING TO BUILD AN APARTMENT AND GO PUT IT OUT OF HERE ON AN ISLAND.

AND I DON'T HAVE ANY DESIRE TO EVEN OWN THAT.

AND SO OUR MIXED OUR MULTIFAMILY IS ONLY IN WITHIN THE CONFINES OF OUR PROJECT.

AND IT'S THERE FOR A REASON.

BECAUSE AND AGAIN, I'M NOT TRYING TO PUSH THIS POINT.

I'M JUST EXPLAINING.

LET'S SAY YOU HAVE 140 UNITS, OKAY.

WHICH IS A SMALL BUT THAT'S YOU CAN ECONOMICALLY MANAGE 140 UNITS WITH THE RIGHT LABOR, 140 UNITS WOULD PROBABLY HAVE 200 PEOPLE, OKAY? BECAUSE SOME OF THEM ARE TWO BEDROOM, MOST OF THEM DON'T HAVE KIDS, MOST OF THEM ARE YOUNG COUPLES OR SINGLES.

AND THAT 200 PEOPLE WALKING TO THE COFFEE SHOP TO BUY A $6 CUP OF COFFEE.

IF 30% OF THEM DO IT EVERY DAY, THAT KEEPS MY COFFEE SHOP VIABLE.

OKAY, I CAN'T BUILD ENOUGH HOMES ON THAT PROPERTY.

SINGLE FAMILY HOMES TO HAVE 200 PEOPLE.

OKAY, SO IT GIVES YOU DENSITY THAT ALLOWS YOU TO DO OTHER THINGS.

NOW, IF YOU DON'T, THAT'S FINE, BUT YOU'RE SACRIFICING SOMETHING BY NOT DOING IT.

AND THAT SACRIFICING THE VIABILITY OF SOME OF YOUR TENANTS THAT EVERYBODY WANTS TO ENJOY.

BUT YOU'VE GOT TO CREATE A PLACE FOR THEM TO.

THEY HAVE TO MAKE MONEY, OTHERWISE THEY CAN'T AFFORD TO BE THERE.

THEY GOT TO PAY THEIR SALARIES.

I'M NOT PUSHING IT, BUT IT'S A BALANCING ACT.

AND IT'S.

THAT'S GOING TO BE YOUR CHALLENGE.

NO. YOU KNOW, HONESTLY, HONESTLY I'M INDIFFERENT.

AT THE END OF THE DAY, I CAN TELL YOU WHAT WORKS BETTER, BUT I'M INDIFFERENT.

[01:15:04]

IT'S YOUR TOWN.

I'M NOT GOING TO FIGHT YOU ON IT.

I DON'T WANT TO. I DON'T WANT TO.

THERE'S NO REASON FOR ME TO.

I CAN JUST EXPLAIN TO YOU WHY I THINK IT MAKES SENSE.

AND YOU CAN SAY, WE DON'T CARE.

LET'S MOVE FORWARD. I'LL SAY, FINE.

I PROMISE YOU, I'M NOT GOING TO FIGHT YOU ON IT.

I'LL EXPLAIN IT TO YOU, AND I'M NOT GOING TO TRY.

I'LL JUST GIVE YOU THE FACTS AND YOU CAN SAY, OKAY, BUT I CAN MAKE AN INTELLIGENT DECISION BASED ON FACTS AND WE'LL MOVE FORWARD, AND I'M FINE EITHER WAY.

DON'T. I'M NOT GOING TO LOSE ANY SLEEP OVER IF YOU DO APARTMENTS HERE OR NOT.

WELL, MY FACE IS ONE THAT YOU WON'T SEE HERE WHEN YOU RETURN.

SO JUST SO YOU KNOW.

YOU'RE NOT GOING TO BE HERE.

I WON'T BE HERE.

OH, MAN. BUT I, YOU KNOW, THANK YOU FOR THAT FLEXIBILITY.

AND THANK YOU FOR MAKING THAT CLEAR THAT YOU'RE WILLING TO BE FLEXIBLE.

AND OF COURSE, AT THE END OF THE DAY, IT COMES TO OBVIOUSLY WHAT THE RESIDENTS WANT AND BEING FLEXIBLE IN THAT IN THE DEVELOPMENT.

SO I'M GLAD TO HEAR THAT FROM YOU TRULY I AM.

NO IT'S Y'ALL'S COMMUNITY.

I WILL ALWAYS BE A VISITOR HERE.

I MEAN BUT I WANT IT TO BE SOMETHING THAT WE'RE PROUD OF AND THAT WE TELL PEOPLE AND THAT IT'S ON OUR NEXT SLIDE WHEN WE'RE DOING IT.

BECAUSE I WANT TO BE PROUD OF WHAT WE DO HERE.

AND I KNOW WE WILL BE.

AND I KNOW WE'LL DO IT RIGHT.

I HAVE NO DOUBT ABOUT THAT.

IT'S JUST, YOU KNOW, GETTING THE PIECES TOGETHER.

ANYBODY ELSE ON THIS ONE.

OKAY. DOESN'T LOOK OKAY.

ALL RIGHT, SO I DON'T HEAR ANY MORE ON THIS.

WELL I APPRECIATE YOUR PRESENTATION TODAY.

THANK YOU. NO. THANK YOU. IF YOU HAVE ANY MORE QUESTIONS.

AND YOU'RE WELCOME TO SHARE THAT WITH ANYBODY THAT HAS A DESIRE TO HAVE.

THANK YOU. THANK YOU SO MUCH.

WELL, I GOT A QUESTION FROM COUNCIL MEMBER SABOL.

YOU WERE ALMOST GONE. I KNOW.

NO WORRIES. I'VE BEEN THINKING THIS THROUGH MY HEAD.

SO MR. HENDON IS FROM BEDFORD? YES. SO HE HAS AN IDEA OF WHAT THIS TOWN HAS COME FROM.

AND HE'S GOT A HISTORY HERE, I ASSUME.

SO HAS HE GIVEN YOU ANY IDEA OF WHAT HE THOUGHT THAT THE COMMUNITY, KNOWING IT AS HE DOES? YES, HE HAS.

AND I SAID I LISTENED VERY INTENTLY AND I SAID, LET'S SEE WHAT THE COMMUNITY SAYS.

BECAUSE I DON'T WANT TO BE JADED BY HIS OPINION.

[LAUGHTER] BECAUSE I REALLY DON'T.

BECAUSE HE HASN'T LIVED HERE IN A WHILE.

AND I WANT TO HEAR WHAT Y'ALL HAVE TO SAY AND Y'ALL HAVE TO SAY BEFORE NOW, WHAT HE SAYS MIGHT DOVETAIL IN PERFECTLY, BUT IT MIGHT NOT.

AND I DON'T WANT TO BE JADED AND THINK THAT THAT'S THE RIGHT WAY TO DO IT.

I THINK WE STRUGGLE AS A CITY TO COOPERATE WITH THE OLDER COMMUNITY AND THE YOUNGER COMMUNITY AND TRY TO COME TOGETHER, NUMBER ONE.

BUT NUMBER TWO, TO GROW THE COMMUNITY IN A RIGHT DIRECTION AT SOME POINT.

AND THAT'S THE ONLY REASON I ASKED HIM WHAT HE THOUGHT.

BUT HE'S NOT EXTREMELY YOUNG.

RIGHT. SO BUT SEE, THAT'S WHAT I'M THINKING BECAUSE WE ALWAYS YOU TEND TO CENTRALIZE ON THE PEOPLE THAT LIVE AROUND THE AREA.

BUT WHAT ABOUT THE REST OF THE TOWN? AND IF YOU DON'T PUT APARTMENTS IN LIKE YOU'RE SPEAKING OF, THE VISION IS TO HAVE IT BE MORE OF A GREEN SPACE AND THEN JUST MAYBE ONE 1 OR 2 DESTINATION TYPE RESTAURANT OR A DESTINATION TYPE BUSINESS.

WELL, I THINK IT'S WE HAVEN'T DETERMINED THAT YET.

BUT WE'LL COME UP WITH A PLAN THAT EVERYBODY AGREES ON IN THE CONTEXT OF IT AND HELP TO PRODUCE IT.

BUT WHAT YOU'RE SAYING IS NOT UNUSUAL.

I MEAN, AGAIN, I'LL USE COLLEGE STATION BECAUSE IT'S A SMALLER TOWN.

WHEN WE WERE NEGOTIATING WITH THE UNIVERSITY, THEY SAID, WE'RE GOING TO BE VERY CAREFUL WHERE YOU PUT MY NAME, A&M LOGO AND THE NAME.

I SAID, I DON'T EVEN WANT TO USE YOUR NAME.

AND THEY WERE INSULTED AND THEY SAID, WHY NOT? AND I SAID, IF I MAKE THIS AGGIE CENTRIC, I'M GOING TO RUN OFF HALF THE TOWN THAT DIDN'T GO TO SCHOOL HERE, AND I'M GOING TO END UP WITH A BUNCH OF KIDS RUNNING DOWN HERE.

THEY'RE GOING TO RUN OFF MY PAYING CUSTOMERS.

SO WE'VE GOT TO ATTRACT BOTH, AND WE'VE GOT TO BE MINDFUL OF WHO OUR AUDIENCE IS NOW.

THE KIDS COME THERE AND THE PARENTS COME THERE AND THE GRANDPARENTS COME THERE, AND IT ALL WORKS.

BUT IT'S BECAUSE WE DIDN'T CONCENTRATE ON A SINGULAR GROUP TO BE OUR AUDIENCE.

WE TRY TO BE BROAD ENOUGH TO ATTRACT EVERYBODY AND HAVE SOMETHING FOR EVERYBODY.

I THINK THERE'S GREAT OPPORTUNITIES.

I MEAN, YOU KNOW, WE DON'T KNOW ENOUGH YET TO SUGGEST USES.

I DON'T THINK IT'S JUST GOING TO BE 1 OR 2 THINGS.

I DON'T THINK THAT AT ALL.

I THINK IT'S I THINK YOU'RE DEFINITELY GOING TO HAVE RESIDENTIAL IN A FOR SALE ENVIRONMENT.

I THINK I WOULD HIGHLY RECOMMEND THAT.

IT'S A GOOD TAXPAYING GROUP AND IT'S PEOPLE ACTIVE ON THE PROPERTY.

YOU KNOW, I DON'T KNOW IF YOU'VE EVER LOOKED AT SENIOR HOUSING.

THERE'S SOME FANTASTIC SENIOR HOUSING THAT ARE MORE INDEPENDENT TYPE LIVING.

I DON'T KNOW IF THAT MAKES SENSE FOR YOU.

IT'S AGE RESTRICTED, SO IT'S A LITTLE BIT DIFFERENT.

AND I'M SURE THERE'S PEOPLE IN THIS COMMUNITY THAT WOULD LOVE TO BE IN AN ENVIRONMENT LIKE THAT WHERE THEY COULD GO WALK THE TRAILS AND BE THERE.

I DON'T KNOW IF THAT MAKES SENSE.

[01:20:01]

WE DON'T INCORPORATE THAT VERY OFTEN IN OUR PROJECTS.

WE'RE DOING ONE IN COLLEGE STATION RIGHT NOW WITH A GROUP THAT THAT'S TOUCHING ON THAT.

BUT, YOU KNOW, I THINK THE RETAIL AND THE RESTAURANTS WILL WORK AT SOME LEVEL.

IT'S JUST WHAT KIND IS IT? I DON'T THINK WE'RE GOING TO GET I DON'T THINK WE'RE GOING TO GET MORTON'S STEAKHOUSE HERE, BUT WE MIGHT GET A ENTREPRENEUR FROM THE AREA THAT IS NOT WORKING FOR A LANDLORD.

HE'S WORKING FOR HIMSELF KIND OF THING, AND HE DOESN'T NEED TO MAKE A TON OF MONEY.

HE'S WORKING FOR HIS LIVELIHOOD.

I THINK WE DO A LOT OF THOSE THINGS.

I THINK THAT AUDIENCE IS HERE.

IT'S JUST, HOW DO YOU GET HIM TO AFFORD WHAT YOU'RE BUILDING AND BUILD IT OUT? SO WITHOUT GETTING INTO THE WEEDS, I THINK IT'S, YOU KNOW, YOU HAVE A GREAT OPPORTUNITY TO DO A LOT OF DIFFERENT THINGS HERE.

WE JUST HADN'T FIGURED OUT WHAT THAT TOTAL MIX IS YET.

BUT I THINK IT'LL BE GOOD WHEN IT'S DONE.

THANK YOU. YEAH.

THANK YOU GUYS. APPRECIATE IT.

APPRECIATE IT. THANK YOU. ALL RIGHT.

SO WITH QUESTIONS KIND OF FINALIZING I GUESS WE HAVE THIS IS AN ACTIONABLE ITEM.

SO I'LL ENTERTAIN A MOTION HERE FOR.

AND BEFORE WE GET INTO THE MOTION, I DO HAVE SOME QUESTIONS.

SO REAL QUICK JUST TO CLARIFY FOR THE AUDIENCE.

SO AND I'LL, DIRECT THAT TO OUR INTERIM CITY MANAGER.

SO THIS MEMORANDUM OF UNDERSTANDING THERE'S NOT A FINANCIAL OBLIGATION TO THIS ON OUR BEHALF.

CORRECT? THERE IS NOT A FINANCIAL OBLIGATION.

SO WHAT THIS CAN YOU SUMMARIZE WHAT THIS WILL BE DOING? BASICALLY WHAT IT DOES IS IT COMMITS US BOTH TO WORKING TOGETHER.

IT COMMITS US BOTH TO WORKING TOGETHER.

THERE'S SOME BASIC DELIVERABLES WHERE WE WILL ASSIST, WE WILL PURSUE, WE WILL LOOK INTO, AND THEY WILL DO THE SAME FOR US.

OKAY. IT IS POSSIBLE.

AND THIS IS WHERE WE'RE WORKING THINGS OUT.

IT IS POSSIBLE THAT WE GIVE THEM AN EXCLUSIVE LOOK ON THE PROPERTY FOR A PERIOD OF TIME.

IN ORDER FOR A GROUP LIKE MIDWAY TO INVEST THEIR TIME AND MONEY IN SOMETHING, THEY NEED TO HAVE SOME ASSURANCES.

SO WE'VE PRETTY MUCH GOT THE PARAMETERS WORKED OUT.

BUT THERE'S SOME CONVERSATIONS WE STILL NEED TO HAVE TO FINALIZE THAT.

BUT THAT'S ESSENTIALLY WHERE WE'RE LANDING AT THIS MOMENT.

SO AGAIN, IT'LL BE A LOOK PERIOD MOVING TOWARD HOPEFULLY MOVING TOWARD A DEVELOPMENT MANAGEMENT AGREEMENT, WHICH WOULD REALLY START TO IDENTIFY THEIR ROLE, OUR ROLE INCENTIVES, TIMING, PHASING USES AND THINGS LIKE THAT.

SO THAT'S OUR GOAL OVER THE NEXT PROBABLY SIX MONTHS IS TO WORK THROUGH THINGS TO GET TO THAT POINT.

AND HOPEFULLY WE'LL, BRING THAT BACK AND HAVE, YOU KNOW, HAVE A CONCEPT PLAN FOR YOU ALL.

CONCEPT PLAN BEING ABLE TO SEE WHAT IT COULD LOOK LIKE AND THEN MOVE FORWARD FROM THERE.

SO THIS IS JUST A REALLY JUST DIPPING OUR TOES IN RIGHT NOW.

CORRECT. THIS BEGINNING STAGE.

YEAH. IT JUST IT BASICALLY SAYS KIND OF LIKE WHAT WE'VE SAID.

BOTH PARTIES ARE EXTREMELY INTERESTED.

WE FEEL OUR GOALS ARE ALIGNED.

MIDWAY HAS AS YOU CAN TELL, YOU KNOW, THEY HAVE A WONDERFUL ABILITY TO SEE THE MARKETABILITY OF PROPERTIES AND MARRYING THAT WITH WHAT PEOPLE ARE LOOKING FOR AND THE COMMUNITY NEEDS.

SO YOU KNOW, IF YOU ASK ME AGAIN, IT'S AN UNBELIEVABLY UNIQUE OPPORTUNITY FOR US.

AND AGAIN, MINOR DETAILS FOR US TO WORK OUT ON THAT.

BUT WE ARE.

WE'RE THERE. AWESOME.

THANK YOU SO MUCH. ALL RIGHT.

NOW THAT I MADE THAT CLEAR, I'LL ENTERTAIN A MOTION ON THIS ITEM.

ALL RIGHT. IT LOOKS LIKE I HAVE A FIRST FROM COUNCIL MEMBER FARCO TO APPROVE.

AND I HAVE A SECOND BY COUNCIL MEMBER DAWKINS.

LET'S GO AHEAD AND VOTE.

AND AGAIN, I THINK WE'RE HAVING ISSUES.

SO CITY SECRETARY MICHAEL WELLS.

IT'S SEVEN ZERO.

ALL RIGHT, SO THAT PASSES UNANIMOUSLY.

THANK YOU, MR. WELLS. ALL RIGHT. LET'S GO AHEAD AND MOVE ON TO ITEM NUMBER FOUR.

[4. Public hearing and consider an ordinance amending Chapter 5 of Appendix B, The City of Bedford Zoning Ordinance, specifically amending Section 5.5.B entitled “Fences Abutting Incompatible Districts,” by adding a new paragraph (4) in order to establish an exception process. The Planning and Zoning Commission recommended approval by a vote of 7-0-0.]

THIS ITEM NUMBER FOUR IS A PUBLIC HEARING TO CONSIDER AN ORDINANCE AMENDING CHAPTER FIVE OF APPENDIX B, CITY OF BEDFORD ZONING ORDINANCE, SPECIFICALLY AMENDING SECTION 5.5 B ENTITLED FENCES ABUTTING INCAPABLE DISTRICTS BY ADDING A NEW PARAGRAPH FOUR IN ORDER TO ESTABLISH EXCEPTION PROCESS.

THE PLANNING AND ZONING COMMISSION RECOMMENDED APPROVAL BY A VOTE OF SEVEN ZERO, AND I GIVE YOU DEVELOPMENT DIRECTOR, WES MORRISON.

THANK YOU, MR. MAYOR. COUNCIL MEMBERS, THIS IS A ZONING TEXT AMENDMENT.

AS MOST OF YOU KNOW, THE ZONING ORDINANCE HAS A REQUIREMENT THAT LAND USES THAT ABUT EACH OTHER THAT ARE NOT COMPATIBLE, SUCH AS COMMERCIAL TO RESIDENTIAL, HAS A SCREENING WALL REQUIREMENT OF SIX FEET.

IN THAT REQUIREMENT IT DOESN'T GIVE ANY TYPE OF EXCEPTION.

TYPICALLY YOU WOULD SEE SOME TYPE OF EXCEPTION OR THERE WOULD BE SOME TYPE OF VARIANCE PROCESS.

OUR ZONING ORDINANCE DOESN'T ALLOW A VARIANCE TO A SCREENING WALL REQUIREMENT.

IT HAS TO BE A DIMENSIONAL REQUIREMENT.

SO ESSENTIALLY WHAT OUR ZONING ORDINANCE DOES IS MAKES EVERYONE PROVIDE THAT SCREENING WALL, NO MATTER SPECIAL CONDITIONS THAT MIGHT BE ON THE PROPERTY, SUCH AS TOPOGRAPHY CHANGES, FLOODPLAINS, THINGS LIKE THAT, THAT MAY MAKE A SCREENING WALL NOT MAKE SENSE IN THAT PARTICULAR CASE.

[01:25:02]

SO WHAT THIS AMENDMENT DOES IS IT JUST PROVIDES A AN EXCEPTION PROCESS THAT CAN BE APPLIED THROUGH THE SITE PLAN PROCEDURES THAT WOULD EXEMPT THE SCREENING WALL REQUIREMENT.

IT DOES ALSO SAY THAT IT CLARIFIES THAT A FINANCIAL OR AN ECONOMIC HARDSHIP IS NOT A REASON TO JUSTIFY THAT EXEMPTION.

SO WITH THAT, PLANNING AND ZONING COMMISSION DID MAKE A RECOMMENDATION OF APPROVAL, AND WE DID DO THE PUBLIC HEARING NOTICE, AND WE RECEIVED NO RESPONSE IN FAVOR AGAINST THE REQUEST OR AT ALL.

RIGHT. THANK YOU WES.

SURE. SO WITH THIS ONE IS THERE SOMETHING SPECIFIC THAT BROUGHT THIS TO YOUR ATTENTION? I'M ASSUMING THERE'S A STORY HERE.

THERE IS A STORY. THERE'S ALWAYS A STORY, RIGHT.

SO IT'S ACTUALLY THE NEXT ITEM ON YOUR AGENDA, THE SITE PLAN FOR THE MEDICAL OFFICE THAT'S ON THE AGENDA AFTER THIS ONE.

WHEN WE STARTED LOOKING AT THEIRS, STAFF GOING THROUGH THEIR CHECKLIST ON MAKING SURE OUR SITE PLAN MEETS ALL THE REQUIREMENTS.

WE SAID, OKAY, YOU'VE GOT TO BUILD A SIX FOOT SCREENING WALL.

THE APPLICANT CAME BACK AND SAID, WE'RE 14FT.

ONCE WE FINISH OUR FLOOR ELEVATION FOR AURORA, WE'RE GOING TO BE 14FT DIFFERENT FROM OUR NEIGHBORS PUTTING SIX FOOT SCREENING WALLS.

NOT GOING TO MAKE A DIFFERENCE HERE.

AND STAFF TENDS TO AGREE.

AND WE STARTED DOING THE RESEARCH AND WE REALIZED THERE'S NOT AN EXEMPTION PROCESS AND ALSO NOT A VARIANCE PROCESS.

SO WITHOUT THIS AMENDMENT THEY WOULD HAVE TO BUILD THAT WALL.

GOTCHA. GOTCHA. SO YEAH I APPRECIATE IT.

THANK YOU FOR THAT BACKSTORY. SURE.

I KNEW THERE WAS SOMETHING GOING ON THERE.

OKAY. QUESTIONS FOR WES BEFORE WE OPEN THE PUBLIC HEARING.

ALL RIGHT. SEEING NONE, I'LL GO AHEAD AND GET THIS GOING.

SO WE'LL GO AHEAD AND OPEN THE PUBLIC HEARING AT 7:26.

ANYONE IS HERE TO SPEAK ON THIS ITEM, PLEASE.

NOW WOULD BE A GOOD TIME.

NO TIE TODAY WES, I GET IT.

I LIKE TO KEEP YOU GUESSING. I APPRECIATE THAT, THANK YOU.

THAT MEANS A LOT. ALL RIGHT, SINCE I DON'T SEE ANYBODY ELSE COMING TO THE MIC, I'LL GO AHEAD AND CLOSE THE PUBLIC HEARING.

THAT IS 7:27 TO CLOSE IT.

ALL RIGHT COUNCIL, WHAT IS YOUR PLEASURE? I HAVE A MOTION TO APPROVE.

MAYOR PRO TEM GAGLIARDI.

DO I HEAR A SECOND? SECOND FROM COUNCIL MEMBER SABOL.

LET'S GO AHEAD AND VOTE. SEVEN ZERO.

ALL RIGHT. AND THAT PASSES. THAT PASSES UNANIMOUSLY.

SEVEN ZERO THANK YOU, THANK YOU COUNCIL.

THANK YOU. STAFF.

NEXT UP WE HAVE THE ITEM THAT WAS MENTIONED.

[5. Consider a resolution approving a site plan for development of the property at the southwest corner of Harwood Road and Martin Drive, known as Lot 1, Block 1, Harwood Bedford Medical Office Village and addressed as 3030 Harwood Road, Bedford, Texas. (SITE-23-4) The Planning and Zoning Commission recommended approval by a vote of 7-0-0.]

CONSIDER AS ITEM NUMBER FIVE.

CONSIDER A RESOLUTION APPROVING THE SITE PLAN FOR THE DEVELOPMENT OF PROPERTY AT THE SOUTHWEST CORNER OF HARVARD ROAD AND MARTIN DRIVE, KNOWN AS LOT ONE, BLOCK ONE, HARWOOD BEDFORD MEDICAL OFFICE VILLAGE AND ADDRESSED AS 3030 HARWOOD ROAD, BEDFORD, TEXAS.

GIVING YOU DEVELOPMENT DIRECTOR WES MORRISON, WELCOME BACK.

THANK YOU. MAYOR, COUNCIL MEMBERS.

THIS PROPERTY, A LOT OF PEOPLE REFER TO THIS PROPERTY AS THE HORSE LOT.

THAT'S WHAT EVERYBODY KNOWS IT AS.

BUT IT'S BEEN VACANT FOR SOME TIME.

IT'S HEAVILY WOODED THERE ON THE SOUTH PORTION OF THE LOT.

AND THE PROPOSED USE IS A MEDICAL OFFICE, PROFESSIONAL OFFICE THERE.

THE USE IS ALLOWED IN THE HEAVY COMMERCIAL ZONING DISTRICT.

THE PROPOSED 13,000 SQUARE FOOT OFFICE BUILDING WILL AGAIN BE LOCATED ON THE NORTH PART OF THE PROPERTY.

THE SITE PLAN DOES MEET ALL THE ZONING CRITERIA EXCEPT FOR THE SCREENING WALL REQUIREMENT, WHICH BASED ON THE ORDINANCE THAT WAS JUST PASSED, THEY ARE ASKING FOR THE EXEMPTION ON THAT.

SITE PLAN HERE.

YOU SEE, THIS PROPERTY IS IN TWO LOTS.

THE PORTION TO THE NORTH IS WHAT'S BEING THE SITE PLAN IS BEING ASKED FOR TONIGHT.

ACCESS IS GOING TO BE OFF OF BOTH HARWOOD AND MARTIN ROAD.

AND THEN WITH THE SCREENING WALL EXEMPTION, THIS DIAGRAM JUST KIND OF GIVES A LITTLE BIT MORE INFORMATION THE APPLICANT PROVIDED.

SO WHERE THE RED LINE IS BECAUSE I KNOW THOSE NUMBERS ARE HARD TO READ.

THAT JUST SHOWS THE ELEVATION OF THE PARKING LOT FOR THE MULTIFAMILY THAT'S TO THE WEST OF THE PROPERTY THAT WOULD BE REQUIRED TO DO THE SCREENING WALL.

SO THERE IS APPROXIMATELY A 14 FOOT DIFFERENCE BETWEEN THAT RED LINE AND THEN THE VERY TOP YELLOW AREA WHERE WOULD BE THE FINISHED FLOOR ELEVATION.

SO STAFF FELT THAT THAT WAS A JUSTIFICATION ENOUGH TO APPLY THE EXEMPTION.

PLANNING AND ZONING COMMISSION AGREED AND MADE THEIR RECOMMENDATION.

THE SITE PHOTOS, JUST TO GIVE YOU AN IDEA OF WHAT'S SURROUNDING THE PROPERTY LIKE WE JUST SAID TO THE WEST WAS MULTIFAMILY TO THE NORTH AND TO THE EAST IS COMMERCIAL, AND THEN TO THE SOUTH IS ALSO THE VACANT LOT, PLUS MULTIFAMILY.

PLANNING AND ZONING COMMISSION FOUND THAT THE USE WAS IN COMPLIANCE WITH THE ZONING ORDINANCE, THAT THE SITE WAS MEETING ALL THE ZONING REQUIREMENTS, AND THAT DUE TO TOPOGRAPHY, THAT THE SITE DID JUSTIFY THE EXEMPTION TO THE MASONRY SCREENING WALL REQUIREMENT AND RECOMMENDED APPROVAL FROM AT A VOTE OF 7 TO

[01:30:03]

0. I CAN ANSWER ANY QUESTIONS YOU HAVE AND THE APPLICANT.

ALL RIGHT. THANK YOU WES. ANY QUESTIONS ON THIS ONE? YES. COUNCILMEMBER STEVES.

THANK YOU, MAYOR.

WES, COULD YOU PUT THE DIAGRAM OF THE ENTRANCE AND THE EXITS, PLEASE? BOTH OF THOSE ENTER INTO THE SCHOOL ZONE.

IS THAT CORRECT? IS IT GOING TO BE IS IT GOING TO BE IS THERE SOME SIGNAGE WHEN YOU COME OUT THAT SHOWS THAT YOU'RE ACTUALLY, YOU KNOW, LIKE SOMEBODY WHO'S IN THE BUILDING WHEN THEY COME OUT DURING THE SCHOOL HOURS BECAUSE I THINK THE WAY THE SIGNS ARE RIGHT NOW, THEY'RE FURTHER BACK FROM THE.

I THINK YOU'RE CORRECT. I'LL LET ME IF I CAN ASK THE APPLICANT COME UP.

I'M. I KNOW THAT WE'VE APPROVED THEIR INFRASTRUCTURE PLANS.

I DON'T KNOW, OFF THE TOP OF MY HEAD IF THAT INCLUDED ANY TYPE OF SIGNAGE, INTERIOR TO THE PROPERTY.

BECAUSE OBVIOUSLY THE SPEED ZONE WOULD BE DIFFERENT.

SURE. EXACTLY.

TYPICALLY, I DON'T THINK YOU WOULD NORMALLY SEE THAT, BUT I'D HAVE TO ASK THE APPLICANT IF THAT'S BEEN PROVIDED OR IF THAT'S SOMETHING THEY'VE TAKEN IN CONSIDERATION.

OKAY. THANK YOU. AND WES, HISTORY OF THIS PROPERTY.

ONE OF THE THINGS THAT I REMEMBER LAST TIME THAT I'VE SAW ANYTHING COME BEFORE US WAS A STORAGE FACILITY DUE TO THE LIMITED USE OF THIS LAND BECAUSE OF I GUESS IT WAS THEY DIDN'T HAVE SEWER, IF I'M CORRECT.

CORRECT. SO THERE WAS NO SEWER THAT CONNECTED THIS PROPERTY.

AND THE APPLICANT'S DOING A PRIVATE LIFT MAIN TO GET THE SEWER TO WHERE IT NEEDS TO BE.

IT NEEDS TO BE. ALL RIGHT. SO OKAY.

SO BUT THAT WILL BE PRIVATELY MAINTAINED NOT PUBLICLY MAINTAINED.

GOTCHA OKAY. GREAT. PERFECT PERFECT.

THAT WAS GOING TO BE MY MAIN QUESTION, BECAUSE I KNOW THAT THIS SITE WAS VERY DIFFICULT TO TRY AND BUILD ON BECAUSE OF THAT, BECAUSE OF THAT SEWER LINE.

AND SO THE OPTIONS AVAILABLE WERE PRETTY LIMITED.

AND WE FIRMLY SAID NO TO STORAGE FACILITIES.

SO THAT'S GOOD TO KNOW.

THANK YOU. A LITTLE HISTORY FOR THE RESIDENTS AS WELL.

SURE. ALL RIGHT. ANY QUESTIONS FOR WES.

OKAY. ALL RIGHT.

SO FOR THIS ONE IS IT I DON'T THINK IS IT A PUBLIC HEARING AS WELL? NO, IT'S NOT SO COUNCIL.

I HAVE A MOTION TO APPROVE BY MAYOR PRO TEM GAGLIARDI.

I HAVE A SECOND BY COUNCILMEMBER CULVER.

LET'S GO AHEAD AND VOTE. COULD I JUST ASK FOR A CLARIFICATION? THAT IS ALSO TO APPROVE THE EXCEPTION AS WELL AS THE SITE PLAN FOR THE SCREEN? JUST FOR THE EXCEPTION? YEAH. OKAY.

YEAH. YOU GOT IT. ALL RIGHT.

LET'S GO AHEAD AND VOTE.

SEVEN ZERO. ALL RIGHT.

THAT PASSES UNANIMOUSLY. THANK YOU COUNCIL.

THANK YOU. STAFF.

ALL RIGHT.

MOVING RIGHT ON TO ITEM NUMBER SIX.

[6. Discussion to determine if expenditures made by the former City Manager were required to have prior approval by the City Council. ***Item requested by Councilmember Steves. ]

IT SAYS DISCUSSION TO DETERMINE IF EXPENDITURES MADE BY FORMER CITY MANAGER WERE REQUIRED TO HAVE PRIOR APPROVAL BY THE CITY COUNCIL.

THIS ITEM WAS REQUESTED BY COUNCIL MEMBER STEVES.

SO I WILL GO AHEAD AND LET HIM GO AND SPEAK ON THIS ITEM.

THANK YOU, MAYOR. I REQUESTED THIS ITEM TO BE PLACED ON THE AGENDA AFTER I DISCOVERED WHAT APPEARED TO BE A PROBLEM WITH THE CITY'S CONTRACT APPROVAL PROCESS.

FIRST, I NEED TO START WITH SOME BACKGROUND INFORMATION.

PRIOR TO OUR LAST COUNCIL MEETING, WHICH WAS APRIL 9TH, I REVIEWED THE ITEMS ON THE AGENDA THAT HAD A QUESTION, AND I HAD A QUESTION ABOUT ITEM NUMBER FOUR.

THE ITEM READ CONSIDER A RESOLUTION AUTHORIZING THE INTERIM CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICE AGREEMENT WITH GARY JOHNSON, CONSULTING SERVICES, IN THE AMOUNT OF $114,000.

SO I WISH TO COMPARE HIS OLD CONTRACT WITH THE NEW CONTRACT THAT WE WERE GOING TO GIVE HIM.

I SEARCHED THROUGH THE PAST MEETING AGENDAS AND MINUTES ON THE CITY'S WEBSITE.

I WASN'T ABLE TO FIND ANY INFORMATION ON HIS PREVIOUS CONTRACT.

UNABLE TO LOCATE THE PREVIOUS CONTRACT, I CONTACTED THE INTERIM CITY MANAGER REQUESTING COPIES OF ALL THE CONTRACTS THE CITY HAD SIGNED WITH MR. JOHNSON. SHE SENT ME TWO CONTRACTS THAT SHE FOUND IN A FILES, THEN CALLED ME EXPLAINING THAT THEY WEREN'T ABLE TO LOCATE ANY OTHERS AS OF YET.

I ASKED HER IF SHE RECOMMENDED THE CONTINUED USE OF MR. JOHNSON'S SERVICES.

SHE SPOKE VERY HIGHLY OF ALL HE HAS ACCOMPLISHED FOR THE CITY AND VALUED HIS WORK.

I AGREED WITH HER THEN, AND I STILL DO TODAY.

AT THE COUNCIL MEETING ON APRIL 9TH, I VOTED IN FULL SUPPORT OF MR. JOHNSON'S PROFESSIONAL SERVICE CONTRACT.

NOW FOR A MINUTE, I HAVE TO STOP FOR A MOMENT.

I HAVE TO STOP, MAKE CRYSTAL CLEAR THE PROBLEM I FOUND IS NOT WITH THE CONTRACT OF MR. JOHNSON. IT'S STRICTLY WITH THE CITY'S CONTRACT APPROVAL AND MONITORING PROCESS.

I DON'T WANT MY FOLLOWING STATEMENT TO TAINT, TARNISH OR QUESTION THE SERVICES OF MR. JOHNSON THAT HE PROVIDES OR CONTINUES TO PROVIDE FOR OUR CITY.

I NEED TO STRONGLY EMPHASIZE THE PROBLEM IS WITH THE INTERNAL CONTROLS OF THE CITY'S FINANCE DEPARTMENT, AND NOT THE SERVICES PROVIDED BY THE CONTRACTOR.

ALL HIS WORK HAS BEEN PROPERLY DOCUMENTED AND HIS WORK HAS BEEN VERIFIED.

[01:35:05]

A FEW DAYS AFTER THAT COUNCIL MEETING, I HAD THE OPPORTUNITY TO REVIEW THOSE TWO CONTRACTS.

THE FIRST CONTRACT WAS DATED MARCH 30TH, 2021, COVERING MARCH 30TH, 2021 TO SEPTEMBER 30TH, 2021 FOR AN AGREED AMOUNT OF $9,500 A MONTH, WHICH TOTALS $57,000.

I CHECKED ON THAT. THAT WAS THE ACTUALLY THE AMOUNT THAT WAS PAID TO HIM.

IT IS MY UNDERSTANDING, AND THE ATTORNEY COULD CORRECT ME THAT ANY PROFESSIONAL SERVICE AGREEMENT IN THE AMOUNT OVER $50,000 SHOULD HAVE BEEN BROUGHT BEFORE COUNCIL.

THAT WAS NOT DONE.

THE SECOND CONTRACT, DATED APRIL 6TH, 2023, COVERS APRIL 2023 UNTIL 2024, IN THE AMOUNT OF $9500 A MONTH, TOTALING $114,000.

I CHECKED ON THAT. THAT WAS ACTUALLY PAID.

MY UNDERSTANDING AGAIN, ANYTHING OVER $50,000 IS REQUIRED TO BE BROUGHT BEFORE COUNCIL FOR APPROVAL.

I REQUESTED THIS AGENDA ITEM TO BE A DISCUSSION TO DETERMINE IF THE MANAGER WAS REQUIRED TO HAVE THESE CONTRACTS APPROVED BY COUNCIL.

I AM NOT SAYING THE EXPENDITURES WERE INAPPROPRIATE OR THE FUNDS MISUSED IN ANY WAY, OR EVEN THAT THE FUNDS WEREN'T IN A COUNCIL APPROVED BUDGET.

I'M NOT IMPLYING THAT ANYTHING WAS INTENTIONALLY DONE TO CIRCUMVENT THE COUNCIL, BUT WHAT I'M SAYING IS THERE IS AN ISSUE WITH OUR CONTRACT MANAGEMENT SYSTEM.

WHEN $341,125 WAS PAID OUT ON A CONTRACT THAT WAS NEVER BROUGHT BEFORE AND APPROVED BY COUNCIL.

SO I'M ASKING, WERE THESE EXPENDITURES BY THE CITY MANAGER REQUIRED TO BE APPROVED BY THE CITY COUNCIL IN A RESOLUTION? AND TWO, IF SO, HOW CAN WE MAKE SURE THAT THOSE CONTRACTS GET APPROVED BY COUNCIL BEFORE EACH AND EVERY TIME? THANK YOU. THANK YOU, COUNCILMAN STEVES.

I GUESS WHAT I'M GETTING AT, I THINK THE WAY YOU WANT TO BRING THIS BEFORE US IS JUST IN TRANSPARENCY.

IT'S JUST MAKING SURE WE'RE AWARE BECAUSE I THINK IF AND CORRECT ME IF I'M WRONG, BUT YOU WERE PROBABLY ASSUMING THAT IF YOU CAUGHT THIS, THAT IF THE PUBLIC CAUGHT IT, THERE MAY BE SOME SENSE THAT THERE WAS SOME IMPROPRIETIES.

RIGHT? I WANTED TO BRING IT OUT IN THE OPEN.

AND I'D LIKE FOR THE ATTORNEY TO ANSWER THOSE TWO QUESTIONS.

YES. AND THEN JUST FOR TRANSPARENCY AND THEN TO SAFEGUARD ANYTHING [INAUDIBLE] YOU? ABSOLUTELY. YOU KNOW, IN THE FUTURE, IF THERE WAS SOMETHING, THEN.

SO SINCE WE'RE ALL NOT LAWYERS HERE, I THINK THIS WOULD BE PROBABLY A GOOD TIME FOR BRYN TO EDUCATE US A LITTLE BIT MORE ON THE PROCESS AND TALK A LITTLE MORE ON THIS SUBJECT.

CERTAINLY. AND I THINK YOU ALL HAVE RECEIVED MY LEGAL OPINION.

ESSENTIALLY RESPONDING TO COUNCIL MEMBER STEVES CONCERNS.

SO THE CITY OF BEDFORD'S PURCHASING POLICY IN EVERY CITY SETS IT AT A DIFFERENT LEVEL THRESHOLD.

THE CITY OF BEDFORD'S POLICY IS ESSENTIALLY THAT ANY CONTRACT OVER $50,000, IT'S NOT LIMITED TO PERSONAL OR PROFESSIONAL SERVICES.

ANY CONTRACT OVER $50,000 IS REQUIRED TO COME FOR APPROVAL BY COUNCIL.

IF IT'S UNDER $50,000, THAT IT'S NOT SUBJECT TO ANY SORT OF BID AWARD PROCESS, THEN THE CITY MANAGER HAS EXPRESSED AUTHORITY UNDER OUR OWN PURCHASING GUIDELINES TO APPROVE SUCH A CONTRACT.

THESE ARE CITY REQUIREMENTS UNIQUE TO BEDFORD.

AS I SAID, EVERY CITY IS DIFFERENT.

IT IS NOT A STATE LAW REQUIREMENT THAT THIS IRREGULARITY RELATES TO.

AND SO THAT'S THE ANSWER TO THE FIRST QUESTION.

AND COUNCIL MEMBER STEVES, I'M SORRY I MISSED YOUR SECOND QUESTION.

HOW DO WE MAKE SURE THAT WHEN WE HAVE A PROFESSIONAL SERVICE AGREEMENT OVER $50,000, THAT IT'S BROUGHT BEFORE COUNCIL EACH AND EVERY TIME AND APPROVED.

SO THAT'S SO THAT'S PROBABLY MORE OF A INTERNAL PROCEDURAL QUESTION RATHER THAN A LEGAL QUESTION.

I CAN GIVE YOU SOME ADVICE ON PERHAPS LEGALLY HOW TO ENSURE THAT.

BUT OF COURSE YOU CAN'T LEGISLATE AROUND PERSONAL ERROR OR MISTAKE.

RIGHT. SO BUT YOU COULD AMEND THE PURCHASING POLICY AND DELETE THE AUTHORITY ALTOGETHER FOR THE CITY MANAGER TO SIGN ANYTHING. BUT OF COURSE, THEN EVERY CONTRACT WILL COME TO COUNCIL AND THE ASSOCIATED DELAY WITH HAVING THAT APPROVAL SECURED WOULD FOLLOW.

BUT IT REALLY IS UP TO COUNCIL WHETHER THAT'S SOMETHING THAT THEY FEEL IS NECESSARY BASED ON THIS ONE CIRCUMSTANCE.

SO DO YOU THINK WE HAVE A HAD A VALID CONTRACT PRIOR TO THIS PAST APRIL 9TH? DID WE HAVE A VALID CONTRACT WITH.

SO. SO IN MY OPINION, THE CONTRACTS WERE LIKELY VOID, BUT THE EXPENDITURES WERE NOT.

[01:40:02]

AND I KNOW THAT SOUNDS LIKE SPLITTING HAIRS, AND I THINK YOU EVEN MENTIONED THAT.

BUT YOU ALL APPROVED THE BUDGETING OF THE FUNDS TO BE EXPENDED FOR THOSE SPECIFIC PURPOSES.

YOU JUST DIDN'T APPROVE, MR. JOHNSON, TO BE THE CONTRACTOR THAT YOU SELECTED TO DO THE WORK.

SO THE CONTRACTS ARE LIKELY VOID.

HOWEVER IN MY OPINION, THERE'S STILL A GOOD CHANCE THAT A COURT WOULD RULE IF IT WERE CHALLENGED THAT THE CONTRACTS WERE STILL VALID AND ENFORCEABLE BECAUSE THE CITY DID RECEIVE THE BENEFIT OF MR. JOHNSON'S WORK, AND IT WOULD BE INEQUITABLE TO SAY, DESPITE THE FACT THAT YOU DID THREE YEARS OF WORK FOR THE CITY, AND WE KNEW THAT YOU DID IT, AND WE SAID NOTHING FOR THREE YEARS, YOU HAVE TO RETURN ALL THE MONEY NOW.

SO TECHNICALLY, FROM AN ACADEMIC STANDPOINT, THEY'RE LIKELY VOID.

BUT PRACTICALLY SPEAKING, I THINK A COURT WOULD REQUIRE THAT OR DECLINE TO PURSUE ANY ENFORCEMENT TO HAVE THE FUNDS RETURNED. AND I'LL ALSO SAY THAT THE LAW ALSO SPEAKS TO THE ABILITY OF COUNCIL, AFTER HAVING CAUGHT THIS, TO RATIFY THOSE CONTRACTS, AND THEN THAT WOULD CURE, IN MY OPINION, THAT WOULD CURE ANY IRREGULARITY THAT DID OCCUR WITH RESPECT TO THESE TWO CONTRACTS.

OKAY. WELL, MY NEXT QUESTION IS HOW DID THIS GO ON FOR SO LONG WITHOUT A CONTRACT? I MEAN, THE PAYMENTS HOW DID WE NOT CATCH IT? HOW DID WE NOT LIKE WHEN WE MAKE A PAYMENT? HOW DOES IT NOT GET RECONCILED TO SOMETHING THAT WAS AUTHORIZED A RESOLUTION? SO I'LL DEFER TO STAFF AND JUST FOR CLARIFICATION, A RESOLUTION ISN'T WOULDN'T NECESSARILY BE REQUIRED.

RESOLUTION IS JUST SOMETHING FOR THE CITY SECRETARY TO HAVE IN THE FILE IN ORDER TO HELP.

BUT YOU'RE SAYING THE COUNCIL APPROVAL WOULD ON ANYTHING OVER $50,000, CORRECT? CORRECT. I'M SPEAKING TO THE VEHICLE.

SO LIKE COUNCIL AGREES ON A CITY CHARTER NOT TO INTERFERE WITH THE CITY MANAGER'S AFFAIRS, IS THAT CORRECT? THAT'S PRETTY MUCH WHAT THE CHARTER SAYS, RIGHT? RIGHT. TO WORK SOLELY THROUGH THE CITY MANAGER.

RIGHT. AND SO WHEN IT COMES TO APPROVING THESE ITEMS, DOESN'T COUNCIL HAVE THE SOLE AUTHORITY TO APPROVE THESE ITEMS OVER $50,000? YES. THAT'S CORRECT. WELL, I GUESS WHAT I'M GETTING AT IS HOW IS THIS ALL DONE WITHOUT OUR APPROVAL? I GUESS WHAT I'M SAYING FOR THE PAST TWO, TWO YEARS, I DON'T KNOW ANYTHING ABOUT THE CITY'S INTERNAL CHECKS AND BALANCES.

I'M AFRAID THAT I'LL DEFER TO STAFF FOR THAT.

OBVIOUSLY, HOWEVER IT HAPPENED, IT DID HAPPEN.

OKAY. SO YOU'RE CORRECT.

WELL, ANDREA, WOULD YOU COMMENT HOW.

SORRY. SURE.

ESSENTIALLY, AS WE WENT BACK AND LOOKED AT, OH.

[LAUGHTER] I'M SORRY, I'M TRYING TO HELP OUT.

AS WE WENT BACK AND LOOKED AT CORRESPONDENCE ON HOW THE CONTRACTS CAME TO BE AND HOW THEY WERE PROCESSED IT WAS CLEAR TO ME THAT THERE WERE SOME MISCOMMUNICATIONS AND REALLY SOME, YOU KNOW, SIMPLE MISTAKES MADE AS FAR AS HOW THIS GOT THROUGH.

SO ESSENTIALLY, THE BOTTOM LINE IS THE INITIAL CONTRACT WAS DONE.

IT WAS EXECUTED WITH MR. JOHNSON AND PUT INTO PLACE.

AND AT THAT POINT, OUR FINANCE GROUP THEN AGAIN, WOULD INITIATE PAYMENT BASED ON INVOICES RECEIVED OF ITEMIZED WORK RECEIVED FROM MR. JOHNSON. AND SO THAT GOT PUT INTO PLACE AND THAT THEN CONTINUED.

ONCE THAT HAPPENS THINGS ARE PUT IN PLACE.

AND AT THAT POINT WE DON'T TYPICALLY GO BACK AND GO, WHAT? I MEAN, THE THINGS ARE IN PLACE, PROCESSES ARE HAPPENING.

OUR SYSTEMS YOU KNOW, ALLOW SO MUCH YOU KNOW, FOLLOWING OF THINGS.

BUT, YOU KNOW, THERE WASN'T A, YOU KNOW, THE LIGHT WENT OFF WHEN WE PASSED SIX MONTHS OR THINGS LIKE THAT.

SO IT WOULD HAVE TAKEN US TO REALLY AUDIT THOSE OVER A PERIOD OF TIME.

AND I WILL TELL YOU, YOU KNOW, LOOKING AT THE DATES OF THESE MATTERS WE WERE LACKING IN STAFF IN THAT AREA AT THE TIME.

AND THERE REALLY WAS I WOULD SAY IT WOULD HAVE BEEN ALMOST IMPOSSIBLE FOR US TO CATCH THAT AT THAT POINT.

WE WERE DOWN STAFF.

WE DID NOT HAVE A PURCHASING DIRECTOR OR PURCHASING MANAGER AT THE TIME.

AND SO THERE JUST WASN'T THAT FULL CHECKS AND BALANCES IN PLACE AT THAT TIME.

AND AGAIN, ONCE IT'S IN AND WE'RE RECEIVING INVOICES, WORK IS CONFIRMED THAT IT'S BEEN DONE.

WE'RE PAYING.

I WILL TELL YOU THINGS HAVE CHANGED SINCE THEN.

THERE'S BEEN ADDITIONAL CHECKS AND BALANCES PUT IN PLACE.

WE HAVE CHANGED SYSTEMS IN FINANCE, AND WE DO HAVE A PURCHASING MANAGER POSITION THAT IS NOW IN PLACE.

AND WHEN THAT WAS FIRST CREATED, INITIALLY, THOSE WERE THE THINGS THAT THEY WERE STARTING TO LOOK AT IMMEDIATELY OFF THE BAT.

NOW AGAIN, WE CAN'T REMEDY EVERYTHING OVERNIGHT.

THERE WAS A TOUGH HILL FOR FINANCE TO CLIMB IN THAT AREA.

AND THEY ARE SLOWLY WORKING THROUGH IT.

AND THEN OF COURSE, AS YOU KNOW, ANY ORGANIZATION HAS WE HAD PERSONNEL CHANGES.

[01:45:01]

SO WE HAD TO FILL THAT PURCHASING ROLE AGAIN AND DO THAT.

SO WE'RE AGAIN, WE'RE SLOWLY CHIPPING AWAY AT THOSE THINGS AND CORRECTING THOSE PROCEDURES.

BUT IT JUST DIDN'T HAPPEN OVERNIGHT.

AND ESSENTIALLY, YOU KNOW AGAIN THAT IS HOW I FEEL IT HAPPENED.

IF YOU LOOK AT THE CORRESPONDENCE, LIKE I SAID, I FEEL LIKE THERE WAS A MISCOMMUNICATION.

THE INTENT WAS THERE TO FORMALIZE THE AGREEMENT, GET THE CONTRACT IN PLACE, AND THERE WERE SIMPLY SOME MISCOMMUNICATIONS THAT HAPPENED.

AND LOOKING AT THE DATES, I HAVE TO SAY IT WAS A VERY BUSY TIME AND STAFF WAS, YOU KNOW, WAS IN FLUX A LITTLE BIT.

SO AGAIN, NOT MAKING EXCUSES.

I WOULD LOVE FOR KAREN TO KIND OF COME UP AND JUST TALK A LITTLE BIT MORE IN DETAIL ABOUT SOME OF THE THINGS THAT SHE'S DONE WITH HER STAFF TO MAKE SURE THIS DOESN'T HAPPEN GOING FORWARD. GOOD EVENING, MAYOR AND COUNCIL.

SO, YES, ONE OF THE THINGS WHEN WE HIRED BLAKE IN JUNE OF 22, HE WAS THE FIRST PURCHASING MANAGER FOR THE CITY OF BEDFORD.

AND ONE OF THE THINGS THAT HE AND I TALKED ABOUT AT LENGTH WAS LET'S ANALYZE RISK AND LET'S START FIGURING OUT WHAT OUR MOST RISKY AREAS ARE AND ADDRESS THOSE FIRST.

AND SO FIRST THING WE LOOKED AT WAS P-CARD USAGE.

YOU KNOW, WE HAD JUST HAD A NEIGHBORING CITY THAT HAD SOME FRAUD IN THAT PARTICULAR AREA.

SO THAT WAS OUR TOP PRIORITY.

SO WE LOOKED AT THE NUMBER OF P CARDS THAT WERE ISSUED AND WE CUT THAT DRAMATICALLY.

THEN THE NEXT THING WE LOOKED AT WAS PURCHASE ORDER APPROVALS.

WE HAD A FINANCIAL SYSTEM THAT WE WERE NOT FORMALLY ISSUING PURCHASE ORDERS THROUGH.

AND THAT'S KIND OF ONE OF THE THINGS YOU CAN DO TO CONTRACT MANAGEMENT.

IF YOU HAVE AN APPROVED CONTRACT, YOU DO A PURCHASE ORDER FOR THAT AMOUNT AND YOU TRACK IT AGAINST IT.

SO THAT WAS THE NEXT PIECE OF HIS CHALLENGE THAT HE HAD TO FACE.

AND THEN THE NEXT THING HE DID WAS SORT OF DOING A VENDOR AUDIT.

SO IF YOU'LL REMEMBER, IN AUGUST OF 22, WE BROUGHT FORWARD A CONTRACT FOR AMAZON.

AND THAT'S WHAT YOU DO WHEN YOU START ANALYZING YOUR VENDORS AND YOU LOOK AT YOUR TOTAL SPEND, YOU BRING FORTH A CONTRACT.

IF YOU LOOK AT YOUR TRENDS AND YOU GO, WE'RE GOING TO GET CLOSE TO THAT 50,000.

WE NEED TO BRING FORWARD A CONTRACT.

AND SO HE WAS SLOWLY GOING THROUGH THAT VENDOR AUDIT, WHICH IS WHY WE HADN'T MADE IT TO THIS PARTICULAR VENDOR YET.

AND SO WE ARE ALWAYS MY BIGGEST PIECE OF RECOMMENDATION, ESPECIALLY TO A PURCHASING MANAGER, IS PROBABLY EVERY QUARTER.

YOU NEED TO BE RUNNING SOME REPORTS ON YOUR VENDORS TO SEE WHAT YOUR ANNUAL SPEND IS.

AND IF WE'RE GETTING CLOSE, I USE AMAZON AGAIN AS AN EXAMPLE.

IF THAT TOTAL SPEND IS GETTING CLOSE TO THAT CONTRACT THRESHOLD, THEN WE NEED TO BRING A CONTRACT FORWARD TO COUNCIL ON WHAT WE ESTIMATE THAT ANNUAL SPEND TO BE.

I WILL TELL YOU, WHEN THIS CAME FORWARD, LAST WEEK, I DID DO A VENDOR AUDIT FOR THE LAST SIX MONTHS JUST TO KIND OF GET AN IDEA OF WHERE WE WERE.

WE DID OVER THE LAST SIX MONTHS, WE HAVE DONE BUSINESS WITH 572 VENDORS.

OF THAT, 68 WERE OVER 50,000.

87% OF THOSE EITHER HAD A CONTRACT APPROVED BY COUNCIL OR NO APPROVAL WAS NEEDED DUE TO PASS THROUGH LIKE IRS, CHILD SUPPORT PAYMENTS, THINGS LIKE THAT.

THERE ARE 13% THAT I'M STILL RESEARCHING JUST BECAUSE I RAN OUT OF TIME.

THE OTHER 30 VENDORS ARE SOMEWHERE BETWEEN 25,000 AND 50,000.

SO WE'RE GOING TO KIND OF KEEP WATCHING THAT TREND.

IT COULD BE A ONE TIME PURCHASE OF 49, WHICH WOULD NOT REQUIRE APPROVAL.

BUT IF THAT TREND CONTINUES, THEN WE'RE GOING TO DO EXACTLY WHAT I SAID AND BRING FORTH AN ANNUAL CONTRACT TO GET THAT APPROVAL SO THAT WE HAVE THAT SPEND AUTHORIZED.

BUT THAT'S KIND OF JUST FROM A PURCHASING STANDPOINT.

SOME OF THE CONTROLS WE'VE PUT IN PLACE, WE DO HAVE A NEW PURCHASING MANAGER STARTING IN ABOUT TWO WEEKS.

I'M VERY EXCITED TO HAVE HER JOIN OUR TEAM.

SHE HAS ABOUT 30 YEARS EXPERIENCE, AND IT'S GOING TO BE A REALLY GOOD ADDITION TO THE FINANCE DEPARTMENT.

SO I JUST KIND OF TOUCHED ON THE PURCHASING SIDE OF THINGS.

I'LL BE HAPPY TO COVER ANY OTHER INTERNAL CONTROLS IF YOU'D LIKE.

NO. I'VE JUST WANTED TO MAKE SURE THAT WE HAVE IT IN PLACE NOW.

I WASN'T TRYING TO POINT FINGERS WITH THIS, BUT OBVIOUSLY THERE WAS A PROBLEM, A MISTAKE IN THE PAST.

SO I JUST WANT TO MAKE SURE THAT GOING FORWARD, WE'RE ABLE TO MAKE SURE IT DOESN'T HAPPEN AGAIN.

ABSOLUTELY. AND SO COUNCIL MEMBER FARCO.

KAREN. THANK YOU. AND WHAT'S OUR ANNUAL BUDGET AGAIN? OH, IN THE 80 MILLION, I BELIEVE.

OKAY, SO, I MEAN, AS AN $80 MILLION DOLLAR COMPANY, WE'RE GOING TO HAVE A COUPLE OF MESS UPS.

WE TOOK CARE OF IT.

I THINK ALL OF US, WE HAD MEETINGS WHERE THERE WAS ANOTHER PROJECT COMING ON, AND WE WERE GLAD THAT GARY WAS DOING THIS.

I THINK THIS IS JUST AN OVERSIGHT.

I THANK YOU, RICH, FOR BRINGING IT TO THE ATTENTION AND LET'S GET IT CLARIFIED AND GO FORWARD.

BUT IT REALLY IS JUST AN OVERSIGHT.

IT WAS YOU KNOW, I DON'T THINK IT WAS ANY MISCONDUCT OR ANYTHING LIKE THAT.

I THINK WE JUST, YOU KNOW, WE'RE A BIG CORPORATION.

WE'RE NOT PERFECT.

BUT THANK YOU FOR, FOR FOR CATCHING THAT AND PUTTING THOSE THINGS IN PLACE, AND I DON'T SEE ANYTHING.

I THINK WE'RE ALL HAPPY WITH WHAT GARY SAVED US AND WHAT WE DID.

AND IT WAS ALWAYS THE NEXT PROJECT AND THE NEXT.

AND THANK GOODNESS WE HAVE THOSE PROJECTS TO DO.

BUT I THINK ONCE AGAIN, IT'S WE DON'T GET INVOLVED IN THE HIRING.

AND SOMETIMES I THINK GARY WAS MORE OF AN EMPLOYEE OF THE CITY OF BEDFORD THAN A CONTRACTOR.

[01:50:05]

AND I THINK THAT'S PROBABLY SOME OF THE OVERSIGHT, TOO.

SO THAT'S BUT THAT'S THE WAY I SEE IT.

ALL RIGHT. MAYOR PRO TEM GAGLIARDI.

THANK YOU. MAYOR. FIRST, THANK YOU, RICH, FOR GOING THROUGH THE WEEDS AND BRINGING THIS TO OUR ATTENTION.

SO JUST TO MAKE IT CLEAR, IT WAS BUDGETED, BUT WE JUST DIDN'T BRING IT IN FRONT OF COUNCIL.

I WILL SAY THIS, I'VE SAT ON THE THE BUDGET AUDIT COMMITTEE FOR THE LAST TWO YEARS AND SAT ON IT WITH A COUNCILWOMAN SABOL AND AND KAREN AND WEAVER AND I'LL SAY THIS THEY SAY NOTHING BUT GOOD THINGS ABOUT OUR FINANCE DEPARTMENT, ESPECIALLY UNDER THE NEW MANAGEMENT OF ASSISTANT CITY MANAGER RIGGS.

AND AND IT IS IT'S I SAW THE TAIL END TO IT HOW IT WAS PREVIOUSLY DONE.

AND IT'S A NEW DAY.

AND SO I APPRECIATE THE DETAIL THAT YOU PUT INTO IT.

AND AGAIN, ALL A'S THAT COME FROM WEAVER, THERE ARE NOTHING THAT FLAGS FOR AUDITS.

AND THAT HAS TO DO WITH A LOT OF OUR HOW TIGHT OUR FINANCE COMMITTEE IS.

OUR FINANCE DEPARTMENT.

AGAIN, IT'S ALSO WITH GARY JOHNSON I THINK HE DID A LOT FOR US.

HE SAVED US A LOT WITH THE VALUE ENGINEERING AND FIXING SOME OVERSIGHTS THAT HAPPENED PREVIOUSLY.

AND SO MANY THANKS TO MR. JOHNSON. AND AGAIN, I THINK ASSISTANT CITY MANAGER, CITY MANAGER ROY IS DOING A GREAT JOB.

AND I THINK SHE'S BEEN RESPONSIVE TO THE NEEDS AND KEEPING AN EYE ON THINGS AND ULTIMATELY ALSO THANK YOU TO, TO JIMMY STATHATOS, WHO SORT OF SET THIS ALL UP AND BROUGHT Y'ALL ALL HERE.

HE EVEN THOUGH HE MAY NOT BE HERE, HE LEFT A GREAT TEAM.

AND I'M CONFIDENT IN YOUR WORK AND IN THE FUTURE THAT WE HAVE HERE IN BEDFORD.

THANK YOU. THANK YOU. ANYBODY ELSE ON THIS TOPIC? COUNCIL MEMBER SABOL.

I JUST IT'S A LITTLE FRUSTRATING FOR ME BECAUSE I THINK THERE'S JUST A COUPLE OF US THAT SAT AN RUTH SAT ON THIS COUNCIL WHEN IT WAS QUITE THE MESS, AND WHEN JIMMY CAME, HE'D ONLY BEEN HERE SINCE SEPTEMBER.

HE DIDN'T HAVE AN ASSISTANT IN ANYTHING.

HE WAS ALL BY HIMSELF.

SO I THINK THINGS HAPPEN.

AND THIS IS MY NEW ONLY BECAUSE THE BUDGET TOOK CARE OF IT.

I MEAN, THIS WAS ALL IN THE BUDGET.

THERE WAS NOTHING HIDDEN.

THERE WAS ALL THIS TRANSPARENCY.

AND WHEN I LOOKED BACK THROUGH THE EMAILS, JIMMY HAD SIGNED THE CONTRACTS, SURE.

BUT IT DIDN'T STATE THAT IT WAS A $50,000 CONTRACT.

IT SAID, I THINK, THAT HE WAS SUPPOSED TO MAKE $3,500 A MONTH.

SO I SEE WHERE THE ACCIDENT TOOK PLACE.

AND I ALSO THINK THAT WE HAD A VERY WEAK FINANCIAL DEPARTMENT.

I'M JUST GOING TO SAY IT AT THAT POINT.

AND LUCKY FOR US, WE HAVE A REALLY GREAT ONE.

THANK YOU, KAREN AND I JUST I HATE FOR THIS STUFF TO TO ROLL REALLY I DO BECAUSE I THINK THAT YOU GUYS ARE TRYING VERY, VERY HARD.

NOBODY REALIZES WHAT A MESS WE WERE IN UNTIL JIMMY STATHATOS CAME.

AND I'M JUST GOING TO SAY THAT STRAIGHT UP.

AND I THINK HE BROUGHT ON KAREN AND ANDREA ON PURPOSE.

WE'VE GOT A GREAT LAW FIRM.

THERE IS NOTHING WRONG WITH OUR TEAM NOW, AND I FRANKLY DON'T EXPECT ANYTHING LIKE THIS TO EVER OCCUR AGAIN.

BUT I JUST HAVE TO SAY, WE WERE JUST NOT IN THE BEST OF SHAPE WHEN JIMMY CAME TO WORK FOR US.

SO HE HAD A LOT OF WORK TO DO.

AND I JUST, I JUST THINK WE HAVE TO GIVE HIM SOME GRACE.

AND YOU CAN'T BEAT WHAT JIMMY DID FOR US WHEN HE WAS HERE.

SO THAT'S ALL I HAVE TO SAY.

THANK YOU. THANK YOU, COUNCILMEMBER SABOL.

ANYBODY ELSE ON THIS TOPIC? SO SO VERY MUCH.

YEAH, I THINK JUST, YOU KNOW, I DON'T THINK I'M GOING TO, YOU KNOW, BEAT A DEAD HORSE HERE.

OBVIOUSLY. I'VE SAID BOTH.

WELL BY MAYOR PRO TEM GAGLIARDI AND BY COUNCIL MEMBER SABOL IN THIS.

FIRST OFF, RICH, THANK YOU FOR BRINGING THIS TO ATTENTION.

AND I'M GLAD THAT WE'RE TALKING ABOUT IT HONESTLY.

AND IT MAKES ME FEEL BETTER KNOWING THAT THERE ARE GOING TO BE STOP GAPS IN PLACE, MAKING SURE THAT THIS WILL NOT HAPPEN AGAIN.

AND TO THE POINT THERE THAT YOU KNOW, GOSH, OUR, FINANCE DEPARTMENT IS CHANGED.

IT'S NIGHT AND DAY FROM WHAT IT WAS BEFORE.

AND WE'RE IN SO MUCH BETTER SHAPE THAN WE WERE, ALL THANKS TO, AS WAS MENTIONED, JIMMY STATHATOS AND THE TEAM THAT HE BROUGHT, BOTH YOU, MISS RIGGS, AND YOU, MISS ROY, AND ALL THE STAFF THAT ARE HERE IN BEDFORD AND SO CANNOT THANK YOU ENOUGH FOR THAT AND MAKING SURE THAT IS TAKEN CARE OF AND EVERYTHING IS WELL DOCUMENTED.

LOOKING AT EVERYTHING FOR MR. JOHNSON'S WORK.

EVERYTHING IS DETAILED. EVERYTHING IS THERE YOU KNOW, IN BLACK AND WHITE AND ACCOUNTED FOR.

AND SO YEAH, I'M GLAD THAT WE KNOW THAT WE HAVE A BETTER TEAM IN PLACE NOW AND WE'RE MOVING FORWARD AND THAT THIS TYPE

[01:55:06]

OF THING WON'T HAPPEN AGAIN.

SO. THANK YOU.

ALL RIGHT. YOU GOOD? OKAY. ALL RIGHT. SO THAT LEADS TO ITEM NUMBER SEVEN, WHICH IS CONSIDER A RESOLUTION BY THE CITY OF BEDFORD

[7. Consider a resolution of the City of Bedford, Texas approving and ratifying a professional services agreement with Gary Johnson, dated March 30, 2021, and a professional services agreement dated April 6, 2023, with Gary D. Johnson Municipal Consulting Services, LLC and all expenditures made in furtherance of professional services rendered by Gary Johnson and Gary D. Johnson Municipal Consulting Services, LLC, from March 30, 2021, and through April 6, 2024. ]

, TEXAS, APPROVING RATIFYING A PROFESSIONAL SERVICES AGREEMENT WITH GARY JOHNSON DATED MARCH 30TH, 2021 AND PROFESSIONAL SERVICE AGREEMENT DATED APRIL 6TH, 2023 WITH GARY D JOHNSON MUNICIPAL CONSULTING SERVICES, LLC.

AND ALL EXPENDITURES MADE IN FURTHERANCE OF PROFESSIONAL SERVICES RENDERED BY GARY JOHNSON AND GARY D JOHNSON MUNICIPAL CONSULTING SERVICES, LLC FROM MARCH 30TH, 2021 AND THROUGH APRIL 6TH, 2024.

GIVE YOU INTERIM CITY MANAGER ANDREA ROY.

SO I'M ASSUMING THIS IS JUST FORMALIZING EVERYTHING.

SORRY. YES, SIR. OKAY.

ALL RIGHT. ALL RIGHT. WITH THAT I WILL HEAR A MOTION.

I HAVE A MOTION TO APPROVE BY COUNCIL MEMBER CULVER.

I HAVE A SECOND BY COUNCIL MEMBER SABOL.

LET'S GO AHEAD AND VOTE.

[INAUDIBLE] 7 0.

7 0, OKAY.

THANK YOU, THANK YOU, THANK YOU SO MUCH.