City Council

Council Chambers 200 West Walker Street

Agenda — 18 items

1. 1 The City Council of the City of League City, Texas, met in a work session in Council Chambers at 200 West Walker Street on the above date at 5:00 p.m.
2. 1. CALL TO ORDER AND ROLL CALL OF MEMBERS
3. 2 Mayor: Nick Long City Council Members: Andy Mann Tommy Cones Tom Crews Courtney Chadwell Justin Hicks Chad Tressler Sean Saunders City Manager: John Baumgartner Assistant City Manager: Rick Davis Assistant City Manger-CFO: Angie Steelman Interim City Attorney: Michelle Villarreal City Secretary: Diana M. Stapp Chief of Police: Cliff Woitena Executive Director of Capital Projects Ron Bavarian Executive Director of Development Services: Christopher Sims Director of Finance: Kimberly Corell Director of Human Resources/Civil Service: James Brumm Director of Parks & Cultural Services: Chien Wei Director of Public Works: Jody Hooks
4. 2. PUBLIC COMMENTS
5. 3. PRESENTATION AND DISCUSSION REGARDING PROJECT RIO FEASIBILITY STUDY
6. 4 Mayor Long called the meeting to order at 5:00 p.m. and called the roll. All members of Council were present. Mr. Crews arrived at 5:04. Mr. Mann arrived at 5:09.
7. 4. ADJOURNMENT
8. 6 _______________________ NICK LONG MAYOR
9. 6 The following members of the public gave comments: Josephine Sullivan Craig Sullivan Chuck DiFalco Peggy Zahler
10. 7 CERTIFICATE OF NOTICE
11. 8 This is to certify that the above Notice of Meeting was posted on the bulletin board of City Hall of the City of League City, Texas, on or before the 22nd day of March, 2024 prior to 12:30 p.m. as well as the City's public internet webpage, www.leaguecitytx.gov and was posted in accordance with the Texas Open Meetings Act, Chapter 551, Government Code.
12. 8 John McGraw, River Caddis Development Presentation District of League City Where vision meets vibrancy. Who we are: a River Caddis Development, we are driven by a passion for shaping vibrant communities through Holistic and innovative real estate solutions. Collaboration & Experience We are investors, creators, designers, managers, contractors, placemakers, operators, owners Transparency: past projects (Slides) Economic, Feasibility, Study – study explanation, what this study is not, study – Phase II Project Description Next Steps – Feasibility Study Presentation, Financial Modeling, Agreement, Hunden Partners applies market realities to live/work/play/visit placemaking. Projects include entertainment venues & districts, stadiums, arenas & event centers, convention & conference centers, headquarters, conference & boutique hotels, tournament sports complexes, retail, restaurant, residential, office, university assets & districts, fairgrounds & expos, fine arts venues, distilleries and attractions Rob Hunden, President & CEO Public and Private Sector Employment Experience Indianapolis Bond Bank/Mayor’s Office 1996-1998 Horwath Landauer/Grubb & Ellis 1998-2000
13. 9 The City Council of the City of League City, Texas reserves the right to meet in closed session on any of the items listed above should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551 of the Texas Government Code: 551.071 Consultations with Attorney, 551.072 Deliberations about Real Property, 551.073 Deliberations about Gifts and Donations, 551.074 Personnel Matters, 551.076 Deliberations about Security Devices, and 551.087 Deliberations Regarding Economic Development Negotiations.
14. 9 C.H. Johnson Consulting 2000-2005 Hunden Partners – 2006 – Presnet Nearly 30 years of industry experience nationwide 1,000+ Projects and Studies Speaker, teacher and author Steve Haemmerle, Executive Vice President Public, Private and Non-Profit Real Estate Consulting Managing Principal, Strategic Redevelopment Advisor 2019-2023 Executive President, Navy Pier, Inc. 2011-2019 Matthew Avila, Project Manager Hunden Partners – Leading Advisor in Destination Real Estate Development Arena-Anchored Mixed-Use Market, Financial Feasibility & Impact Analysis Applies market realities to Live/Work/Play/Visit placemaking Introduction & Situational Overview The City of League City (City) has contracted with the River Caddis Development team (RCD) to develop in partnership with the City a 53-acre parcel located at the current Chester L Davis Sportsplex. As part of that effort, RCD has in turn contracted with Hunden Partners to provide a feasibility study and economic impact analysis. One critical element of RCD’s pre-development work is the market assessment and financial feasibility study to help establish a financially sustainable development program. RCD brought on Hunden Partners (Hunden) to complete the primary market analysis and financial feasibility study, as well as an economic and fiscal impact analysis, for the proposed mixed-used entertainment district (Project) on behalf of the City. The following highlights the key goals of the study: Review existing research, destination plans and other planning documents Analyze destination and real estate metrics, including market and visitor metrics, current market performance statistics, and products Identify relevant local, national and global trends focusing on arena anchored mixed-use district best practices Provide market-backed development recommendations Project the financial performance of recommended assets and the estimated economic, fiscal and employment impact generated Headlines Destination Placemaking. League City has the opportunity for the arena development to enhance professional sports, pre-professional sports, youth sports and other entertainment tourism in a compelling new mixed-use district in the City. There are many pre-professional ice hockey focused arenas across the country that have driven significant economic impact into the communities in which they are located. The Project provides the City of League City with an opportunity to create a unique district on the eastern side of Houston, which currently lacks entertainment assets. Competitive Arena Supply. The greater Houston market is currently limited in small to mid-sized arenas. NRG Arena and Fort Bend Epicenter are currently the only relevant mid-sized arenas in the market. The Harris County Sports and Convention Corporation (venue management) has discussed replacement of the arena and is also interested in operating the Project. The Fort Bend Epicenter is on the opposite side of the MSA, and management of that facility indicated that an ice hockey arena in League City would be complimentary to them rather than directly competitive given their event mix. Regionally competitive markets in San Antonio, Austin and Dallas-Fort Worth have attracted visitation from the Houston market for events that can potentially be held in League City. Demand for Flexible Indoor Space: • Minor League Hockey (League TBD, ECHL, AHL, USHL) • Youth Sports (Basketball, Volleyball, Cheer & Dance, Wrestling, Karate, Ice & Sled Hockey, Figure Skating, Open Skating) • Convention, Consumer, Trade, Agriculture, and Equestrian Shows, • Concerts, Comedy Shows, Live Events & Family Shows (Live Nation & other promoters) Ticketed Shows & Live Entertainment. There is a gap in the market for a facility in the 3,000-6,000-capacity range for ticketed shows in the Houston area. The Houston market for concerts and other ticketed shows is strong, but it is spread out and there are few facilities on the east and southeast side of the market. Mixed-Use Need. Surrounding the anchoring arena and event center complex with commercial and residential uses is critical. First, the surrounding mixed of uses drives consistent activity into the district. Additionally, the mixed-use commercial and residential components are an important part of the overall district funding model. Market Supply & Demand Analysis Key takeaways & Opportnities (Slide) The arena and convention/event center are expected to perform well, reaching stabilization in Year 5 with 170 events, including graduations, concerts, family shows, hockey games, conventions, youth sports, consumer shows, community events and banquets/meetings. The commercial and residential components of the supporting mixed-use development are estimated to have strong absorption and market-leading lease and rental rates. 30-Year Impact Summary Phase I economic, fiscal and employment impacts include: • $9.2 billion in net new spending • Over 1,700 net new permanent jobs • $4.6 billion in net new earnings • $542 million in state taxes generated • $223 million in local taxes generated Conclusions • An achievable vision. • A robust economic driver for the community. • Opportunity to keep local spending in League City. • Creation of a center and community gathering place in League City. • An asset for the community to be proud of. How We Get There. 1. Alignment 2. Financing Strategies 3. Planning & Design 4. Implementation
15. 10 ________________________ DIANA M. STAPP CITY SECRETARY (SEAL) MINUTES APPROVED: April 9, 2024
16. 11 _________________________________________________________________________ NOTE: In compliance with the Americans with Disabilities Act, this facility is wheelchair accessible and accessible parking spaces are available. Requests for special accommodations or interpretive services must be made at least 48 hours prior to this meeting. Please contact the City Secretary's Office at 281-554-1030 or by FAX 281-554-1020. _________________________________________________________________________
17. 11 At 5:53 p.m. Mayor Long said, there being no further business this meeting is adjourned.
18. 12 Any invocation that may be offered during the ceremonial portion of the City Council meeting shall be the voluntary offering of a private citizen, to and for the benefit of the Council. The views or beliefs expressed by the invocation speaker have not been previously reviewed or approved by the Council and do not necessarily represent the religious beliefs or views of the Council in part or as a whole. No member of the community is required to attend or participate in the invocation and such decision will have no impact on their right to actively participate in the business of the Council.