Work Session Notes - April 13, 2025
When I'm feeling sad I just think of you, then I'm glad
Election Day is fast approaching with early voting starting April 22. It is critical that we vote for leadership that can negotiate economic development deals successfully as is evidenced by the Owl Ice House downtown. I know I am the candidate to do just that. Please visit HedrickForGarland.com to learn more about me and my campaign.
I hope you will join me at my final town hall as a council member this Thursday at 6:00 PM at the North Garland Branch Library.
Now onto the Work Session notes. As always, my commentary is in bold italics.
WORK SESSION OF THE CITY COUNCIL
PUBLIC COMMENTS ON WORK SESSION ITEMS
CONSIDER THE CONSENT AGENDA
WRITTEN BRIEFINGS
Council may ask for discussion, further information, or give direction to staff on an item posted as a written briefing.
1. TMPA Asset Exchange
Council is requested to consider an Asset Exchange Proposal between Texas Municipal Power Agency (TMPA) and Bryan Texas Utilities for the exchange of certain transmission and station assets. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the May 6, 2025 Regular Meeting.
This item is the approval of a proposed asset exchange between the Texas Municipal Power Agency (TMPA) and Bryan Texas Utilities. TMPA would sell substation equipment in Bryan’s Dansby and Bryan East substations for $3.24 million, while purchasing a transmission line and equipment for $2.26 million, plus a $4.79 million reconductor project. This aims to resolve operational issues from commingled assets, and since the value of the assets being sold by TMPA exceeds $500,000, each TMPA member city (Garland, Denton, Bryan and Greenville) must approve the transaction.
2. Shiloh Road CIP 14317 Parcel E39 - Acquisition of Real Property Located at 2329 Proctor Street
Council is requested to consider the approval of a purchase agreement and relocation assistance package negotiated with Victoria Covarrubias Rubio for the acquisition of fee simple interest from real property located at 2329 Proctor Street, and authorize the City Manager to execute such documents necessary to complete the transaction. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 15, 2025 Regular Meeting.
3. Shiloh Road CIP 14317 Parcel E43 - Acquisition of Real Property Located at 2329 Stanford Street Council is requested to consider the approval of a purchase agreement and relocation assistance package negotiated with Walter and Silvia Alcantara for the acquisition of fee simple interest from real property located at 2329 Stanford Street, and authorize the City Manager to execute such documents necessary to complete the transaction. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the April 15, 2025 Regular Meeting.
I’ll take items 2 & 3 together as they both involve purchasing property and relocating the owners for the Shiloh Road expansion project. The process involved having each property appraised and making a fair offer to each owner. I am thankful that the City and owners were able to come to an agreement on the purchase of the property prior to having to use eminent domain powers. I would expect additional agreements to come before the council in future sessions as the City works to acquire the remaining properties along the east side of Shiloh Road in this area.
(The two properties in question from DCAD’s maps.)
4. City Council Committees - Pending Items List
An informational update with a dated list of items referred to Council Committees by two Councilmembers.
These items are currently under committee-level discussion and remain pending. No Council action is requested at this time; items will return to the full Council with a report from the committee chair upon completion of committee review.
Periodically a list of pending items is provided to show the items still remaining to be discussed in council committees. Some interesting ones to be discussed in future committee meetings include:
Bounded 380 – Residential Improvements (An initiative I am championing to help homeowners make improvements to their homes and receive tax credits)
Parking Enforcement Audit ‐ Update on Enforcement Strategies and Effectiveness
Reviewing the Process for Economic Development Agreements
Implementing an Adopt‐A‐Street Program (An item I seconded to discuss with Councilmember Bass)
VERBAL BRIEFINGS
Council may ask for discussion, further information, or give direction to staff on an item posted as a verbal briefing.
5. ATMOS Energy Operations in Garland
ATMOS Energy will present an operational update on gas service within the City of Garland, including safety protocols, customer service resources, and community outreach efforts.
Atmos representatives will come to provide an overview of their gas operations in Garland, including safety measures and customer service efforts. Topics to be discussed include:
How citizens can report a gas leak
ATMOS response to reported leaks
Billing inquiries and customer service access
Safety protocols and procedures
Use of technology to improve safety
Public outreach campaigns, such as "Call 8-1-1 before you dig"
In my career as a civil engineer, I have worked with Atmos on pipeline replacement projects.
I will ask them about the progress they are making in our city to replace steel pipe which will corrode and leak over time with plastic pipe.
6. Agreement for Real Property Contract of Sale Between The Owl Icehouse Garland, LLC and the City of Garland Regarding Property Located at 519 State Street in the Downtown Historic Subdistrict. Council is requested to consider the approval of a Development Agreement and Real Property Contract of Sale between The Owl Icehouse Garland, LLC and the City of Garland regarding property located at 519 State Street in the Downtown Historic Sub-district. Unless otherwise directed by Council, this item will be scheduled for formal consideration at the May 6, 2025 Regular Meeting.
After the previous agreement was voted down by the City Council March 4, a new agreement has come before council that better protects the interests of the City. This new agreement spreads incentive payments out over a five year period rather than two tranches at the commencement of construction and 30 days after completion. It also requires the Developer to invest $3.1 million in upgrades in the property, meet annual sales goals of $2 million per year, and complete build out by August 1, 2026.
The terms of the agreement are below:
Owner (City of Garland) will:
Sell the property at the appraised value of $740,000.
Issue a $500,000 one-time reimbursement to the Developer upon:
Completion of construction o Issuance of Certificate of Occupancy (CO)
30 consecutive days of restaurant operation
Provide up to $200,000 in performance-based incentives over 5 years, at a rate of $40,000 per year, contingent upon:
Minimum $2 million appraised real property value (building + land only)
Minimum $2 million in gross annual sales
Transfer the property as-is with no additional City investment beyond the listed incentives
Maintain the right to terminate agreement or suspend payments if the Developer fails to:
Meet performance or construction requirements
Fulfill operational commitments
Comply with conditions from the prior development agreement
Developer will:
Purchase the property from the City for $740,000
Invest approximately $2.5 million in real property improvements
Invest approximately $600,000 in FF&E (furniture, fixtures, and equipment)
Open and operate a restaurant concept at the property
Complete demolition and build out of the Property on or before August 1, 2026, or convey the property back to the City at fair market value.
Operate the business continuously until at least July 31, 2031
Additional Terms:
Coordinate architectural design with Ron Hobbs, architect of record for Jones State Street Real Estate Holding Co., Inc.
Maintain a seat for Jones State Street Real Estate Holding Co., Inc. on the design team throughout development
Provide access to a private room for Jones State Street Real Estate Holding Co., Inc. at $1/day, under the following conditions:
Up to twice per calendar month
During regular business hours
Subject to availability and coordination with restaurant management
Conduct a walk-through prior to site activity so that Jones may identify and retain any materials of interest
I am aware of the petition to stop the transaction and other efforts surrounding this item. I wish there was this amount of awareness when I first opposed the City’s purchase of the property in October 2023 for nearly three times the DCAD appraisal value under the guise that we had to purchase the property immediately to clean up the Square for its grand opening.
Given that we are where we are with the terms imposed by the Jones Family, including the use restrictions and a ridiculous $1 rental fee for the use of a room twice a month in the facility, I believe that this is the best deal we could hope for.
Is it perfect? Absolutely not, but given Don Day’s track record of improving properties in other downtowns, I am glad he is on board with the deal and willing to invest into our Downtown as well.
Can we look at the value of this deal strictly on the basis of payback periods and net present value? If we do, we should include a portion of the $25+ million that was invested into Downtown as well, which we will likely never recoup. However, we do have a world-class public amenity that draws people from all over the Metroplex to enjoy. This was fully evident over Spring Break with the Immersive Art by Pneuhaus inflated colored tubes that was Downtown March 15 to March 30.
Everyday hundreds of families and kids were downtown interacting with the art exhibit. I know from personal experience that those families would be looking for somewhere for their hungry kids to eat soon after playing and the exhausted parents would be looking for an adult beverage.
(Image from https://www.visitgarlandtx.com/events/2025/immersive-art-by-pneuhaus)
To determine the full value, we must take into account the secondary effects that include extra spend beyond the subject property. I admit those secondary effects are harder to quantify, but time will tell if the sales of surrounding businesses will increase over the next five year span and we will see if indeed “a rising tide lifts all boats.”
Going forward, the Garland City Council must be extra vigilant in purchasing land for economic development. We cannot make the same mistake of paying an outrageous price for a piece of property in the future.
7. Lakeshore Clean Up Efforts
Staff will present an update on current and planned initiatives to clean and maintain the shoreline of Lake Ray Hubbard.
The shoreline of Lake Ray Hubbard is an amazing asset at the southeast corner of Garland. Due to currents and wind patterns, much of the trash that enters the lake, either through careless boaters or from creeks, washes onto our shores. Staff will update us on efforts to combat this problem and maintain our beautiful shoreline.
When I lived in Baltimore, the city utilized Mr. Trash Wheel, a trash collection device which is powered by water current and solar panels, which was strategically placed at the mouth of the Jones Falls to intercept trash before it enters Baltimore Harbor. I would love to see something like this placed at our creeks to catch trash before it even enters the lake.
(Image from https://www.mrtrashwheel.com/trash-wheel-family)
8. Grant Overview Kick-Off
Staff will present Council with review details concerning the distribution of Community Development Block Grant (CDBG) funding, HOME Infill Partnership Grant (HOME) funding and Emergency Solutions Grant (ESG) funding for the program year 2025-2026.
Annually the City Council allocates Community Development Block Grant (CDBG), HOME Infill Partnership Grant, and Emergency Solutions Grant (ESG) funding to various worthy organizations. This year, the Salvation Army, the Hope Clinic, Hope’s Door/New Beginning, and the Achievement Center of Texas among others have asked for funding. The Council will finalize their recommendations during the May 5 Work Session.
9. DART Governance and Funding - Impacts on Garland
Staff will provide the Council with an update on recent actions taken by the DART Board regarding funding and governance. Proposed legislation that would impact DART will also be discussed.
DART funding cuts have been the focus of the Texas State Legislature and Member Cities over the past several months. To date, Garland has not taken a position on the proposed state legislation or the compromise plan put forth by the DART Board as discussed in the last Work Session. I am interested to see if there are any new developments from the last time we met.
10. Audit Committee Meeting Report
Staff will provide City Council with updates on recently completed audits by the Internal Audit Department. Councilmember Ed Moore, Chair of the Internal Audit Committee, and Jed Johnson, City Auditor, will provide a committee report on the following items: FY24 External Audit, Sanitation Commercials Services Audit, Municipal Wastewater Treatment Agreements Audit, Pothole and Major Patch Repair Program Audit.
11. Administrative Services Committee Report
Deputy Mayor Pro Tem Lucht, Chair of the Administrative Services Committee, along with staff, will present a committee report on Board and Commissions Engagement. This item was submitted by Deputy Mayor Pro Tem Lucht and seconded by Councilmember Dutton at the January 21, 2025 Work Session. The presentation will also include a report on City Ordinances Related to Chickens. This item was submitted by Councilmember Hedrick and seconded by Councilmember Dutton at the February 11, 2025 Work Session.
The City of Garland currently allows a homeowner to only have four chickens in a backyard coup. I asked the Administrative Services Committee to look at raising the number because a constituent reached out to me and indicated having more would allow for better egg production by rotating among the flock. Currently the State has legislation pending that would increase this number to six birds. We will likely not change or ordinance until we know the outcome of the pending bill coming out of Austin.
CONSIDER APPOINTMENTS TO BOARDS AND COMMISSIONS
Terms are usually staggered whereby at least half of the membership has previous experience. Members are appointed based on qualifications.
12. Councilmember Chris Ott
Libby Odom - Parks & Recreation Advisory Board
ANNOUNCE FUTURE AGENDA ITEMS
A Councilmember, with a second by another member or the Mayor alone, may ask that an item be placed on a future agenda of the City Council or of a committee of the City Council. No substantive discussion of that item will take place at this time.
EXECUTIVE SESSION
13. Deliberate or discuss:
The City Council will recess from the open session and convene in a closed executive session pursuant to Section 551.086, 551.089, and 552.133 of the Texas Government Code to discuss the following matter:
a. GP&L IT Risk Assessment Briefing (Sec. 551.089) -- Discussions and deliberations regarding security assessments or deployments relating to information resources technology, network security information, and the deployment, or specific occasions for implementation, of security personnel, critical infrastructure, or security devices.
b. Competitive matters related to Garland Power & Light as it pertains to the quarterly briefing from the Risk Oversight Committee (551.086 and 552.133) and attorney/client communication related to same (551.071).
ADJOURN
Talking about land purchases to expand Shiloh Road, here is a band called The Shilohs with their song “The Place Where Nobody Knows I Go.”