Apr 04, 2023 Town of Hilton Head Finance & Administrative Committee Special Meeting

[00:00:01]

YOU. GREAT MORNING. GOOD MORNING.

[1. Call to Order]

[2. FOIA Compliance]

[6.a. Consideration of Proposed Amendments to Provisions of Title 11, Chapter 1 of the Municipal Code for the Town of Hilton Head Island to Provide for a Small and Minority-Owned Disadvantaged Business Enterprise Utilization Program and a Corresponding Good Faith Effort Program]

ANYONE FROM THE PUBLIC WOULD WANT TO COMMENT ON THIS PARTICULAR ITEM.

OKAY. THANK YOU. IF YOU WOULD CALL THE ROLE

[6.b. Consideration of a Resolution for the Housing & Urban Development /Community Development Block Grant Entitlement Program- 2023 Annual Plan Request for Project Approval ]

MR.. ACCURATE YES. MR..

YES. MR. BROWN. SUPPORT.

THANK YOU. NEXT UP WE HAVE A CONSIDERATION OF A RESOLUTION FOR THE HOUSING AND URBAN DEVELOPMENT COMMUNITY GRANT ENTITLEMENT PROGRAM FOR 2023.

WE HAVE THE SMART TO PRESENT GOOD MORNING HOW TO MOVE THE MOTION TO APPROVE THE RESOLUTION SECOND. GOOD MORNING THE RECORD MY NAME IS MARCY BENSON SENIOR GRANTS ADMINISTRATOR FOR TOWN. BEFORE I BEGIN THE COMMUNITY DEVELOPMENT BLOCK GRANT PRESENTATION I'D LIKE TO JUST GIVE A BRIEF BUT GENERAL GRANT UPDATE THE TOWN IS ACTIVELY PURSUING ALL ELIGIBLE GRANT OPPORTUNITIES AND MONTHLY I PREPARE A GRANT ACTIVITY REPORT WHICH INCLUDES IN SUMMATION EXCUSE ME ON THAT WERE SUBMITTED WHICH ARE PENDING AWARD NOTIFICATION ISSUE GRANTS AWARDED WHICH ARE PENDING GRANTS THAT HAVE BEEN REIMBURSED GRANTS THAT HAVE BEEN SUBMITTED BUT NOT AWARDED AND GRANT RESEARCH ACTIVITIES FISCAL TO DATE FOR GRANTS TOTALING . ADDITIONALLY 30 GRANT OPPORTUNITIES HAVE BEEN RESEARCHED SINCE THE START THIS FISCAL SCHOOL YEAR AND AT YOUR SEATS THE DIAS THERE IS A COPY OF THE MONTHLY GRANT REPORT FOR YOU TO REVIEW. I'D BE HAPPY TO ADD ASK OR ANSWER ANY QUESTIONS YOU MIGHT HAVE ANY QUESTIONS ON THAT. I WOULD JUST COMMENT REALLY GRANTS KEEP THEM COMING AND MARCY. THANK YOU.

ME TOO THANK YOU MARCY FOR THAT INFORMATION. WE TRULY APPRECIATE YOUR EFFORTS EXPANDING OPPORTUNITIES FOR US HERE ON HEALTH CARE THROUGH THROUGH GRANT REQUESTS.

[00:05:03]

THE TOWN HAS BEEN ALLOCATED HUNDRED AND $85,250 FOR THE 2023 PROGRAM YEAR AND THE APPROVAL OF THE FORD SHELTERING PROJECT IS CONSISTENT WITH THE CURRENT CDBG FIVE YEAR CONSOLIDATED PLAN AS WELL AS SEVERAL OF OUR TOWNS OR OUR PLAN GOALS STRATEGY, IDEAS AND TACTICS WHICH ARE REFERENCED IN THE STAFF MEMO IN ORDER TO MEET HUD REQUIREMENTS PUBLIC INPUT MUST BE SOLICITED DURING DEVELOPMENT OF THE ANNUAL ACTION PLAN AND THIS WAS MET WITH THE CDBG SURVEY THAT WAS POSTED ON THE OPEN TOWN HALL PORTAL FROM JANUARY 18TH THROUGH THE 27TH AND THERE WAS ALSO A PUBLIC MEETING HELD ON JANUARY 25TH.

THREE COMMENTS WERE SUBMITTED VIA THE OPEN TOWN HALL PORTAL. NO COMMENTS WERE SUBMITTED DURING THE PUBLIC MEETING. HOWEVER ONE IN 2022 THE TAYLOR FAMILY NEIGHBORHOOD HOOD PARK WAS SELECTED FOR THE CDBG FUNDING AND THIS PROJECT IS ALSO IN THE FINAL STAGES OF THE HUD REQUIRED ENVIRONMENTAL REVIEW PROCESS FOR 23 EA WHICH IS PROGRAM YEAR FOR IN THE CURRENT FIVE YEAR CONSOLIDATED PLAN THE PROJECT CATEGORY INCLUDED THE FLEXIBILITY TO SELECT PROJECTS THAT COULD ADDRESS A BROAD RANGE OF COMMUNITY NEEDS THAT WOULD BENEFIT LOW AND MODERATE INCOME RESIDENTS. HUD DOES ALLOW FOR CDBG FUNDS TO ALSO BE USED FOR ADMINISTRATION AND PUBLIC SERVICES.

HOWEVER, THOSE THOSE ITEMS HAVE SPENDING GAPS THAT ARE ASSOCIATED WITH THEM AND IT ALLOWS FOR NO MORE THAN 20% OF THE ALLOCATION TO FUND ADMINISTRATIVE COSTS WHICH IN 2023 WOULD BE APPROXIMATELY $37,000 AND NO MORE THAN 15% OF THE ALLOCATION FOR PUBLIC SERVICES WHICH WOULD BE APPROXIMATELY $27,000 FOR THE 2023 PROGRAM YEAR.

THE DRAFT ANNUAL PLAN DOES INDICATE THAT $5,000 OF THE ALLOCATION WOULD BE DESIGNATED FOR PROGRAM ADMINISTRATION COSTS AND THOSE ARE THINGS SUCH AS PUBLICATION COSTS ASSOCIATED WITH PUBLIC MEETING NOTICES AND ENVIRONMENTAL REVIEW NOTICES IN ORDER TO MEET THE MAY 17 HUD SUBMITTAL DEADLINE. THE DRAFT PLAN WAS FOR THE REQUIRED 30 DAY PUBLIC COMMENT PERIOD ON FEBRUARY 27 AND IT ENDED ON MARCH 29TH. ONE COMMENT WAS RECEIVED AND IT WILL BE INCLUDED IN THE FINAL OF THE PLAN PRIOR TO SUBMITTAL TO HUD AND THAT COMMENT TO STOPPING OVERDEVELOPMENT AND CONTROLLING BUILDING APPROVAL OF THE FINAL PLAN BY RESOLUTION IS SCHEDULED FOR THE APRIL 18TH COUNCIL MEETING AND I WOULD BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE ON THE PROGRAM. OKAY.

THANK YOU. THANK. YOU MENTIONED THE FORD SHELLING PROJECT AS I RECALL. THAT WAS TO BE SOME SORT OF PARTNERSHIP WITH THE COUNTY.

IS STILL THE PLAN? YES, THAT IS STILL PLANNED. I MET OUR CIP STAFF TO DISCUSS POTENTIAL PROJECTS TO FUND FOR WITH CDBG FUNDS AND. THIS PROJECT CAME UP BECAUSE IT IS IT IS LOCATED IN AREA THAT HAS A ELIGIBLE LOW TO MODERATE INCOME RATIO AND IT WOULD BE IN

[00:10:01]

I HAVE A GREAT DEAL OF CONFIDENCE THAT YOU'RE PULLING ALL THESE DISPARATE THINGS TOGETHER. SO CONGRATULATION. ARE WE IN ANY THREAT AS WE START TO BRING IN NEW CENSUS NUMBERS? WE HAVE MODERATE INCOME.

HUD HAS DESIGNATED THE TOWN AS A NOW NAME ESCAPES ME BUT AN EXCEPTION COMMUNITY BECAUSE OUR CENSUS NUMBERS AND LOW TO MODERATE INCOME RATIO ARE A LITTLE LOWER SO THEY HAVE LOWERED OUR LIMIT TO 49.56% OF LMI. BUT WE STILL ONLY HAVE THREE CENSUS TRACTS THAT MEET THRESHOLD. YES.

SO WITH THAT BEING I THINK IS IS APPROPRIATE FOR US AS A AS A AS A COUNCIL TO RECOGNIZE THAT GENTRIFICATION IS A CONFLICTING WITH OUR ENTITLEMENT AND ALTHOUGH WE USED THESE FUNDS IN THE PAST FOR YOU KNOW PARK DEVELOPMENT IS PROBABLY THE BIGGEST ONE.

RIGHT? AND WE DO A GREAT JOB OF OUR PARKS EVERYWHERE.

I THINK IT'S PROBABLY HARD TIME FOR US TO GET A OF A DIFFERENT APPROACH WITH THESE FUNDINGS SO THAT WE CAN START TO ASSURE THAT WE ARE PROVIDING HOUSING FOR THAT PORTION THE COMMUNITY THAT IS ALLOWING US TO ENJOY THE ENTITLEMENT. OKAY.

YOU KNOW, WHEN WE TAKE A LOOK AT THE START OF A REPORT THAT ABOUT HOW MANY UNITS WE NEED TO GET ON THE GROUND AND IT'S MIXTURE OF WHAT THAT SHOULD LOOK LIKE THE AND TWOS ARE JUST AS IMPORTANT AS THE 150 UNIT PROJECT. AND YOU I'VE HAD SOME DISCUSSIONS WITH THE TOWN MANAGER AS WE GO THROUGH THIS BUDGET SEASON WE MAY WANT TO CONSIDER THESE THESE FUNDINGS TO ASSIST THOSE THAT ARE PUTTING HOUSING ON THE GROUND AT A SMALLER SCALE. ALL RIGHT. VERSUS GOING TO THE PARK MOVING FORWARD AND THE BEST THING IS THAT WE'VE GOT A LOT OF NICE PARKS.

I'M NOT SURE THAT THERE'S A WHOLE LOT OF ROOM FOR MORE THAN SOME COMMUNITIES ON HILL TODAY THAT DON'T HAVE PARKS WITHIN CLOSE PROXIMITY. WE NEED TO DO THAT BUT I THINK THERE'S ANOTHER WAY TO FUND THAT VERSUS THE THE GRASS THAT WE'RE TALKING HERE TODAY.

SO YES, LET ME FOLLOW UP AND I WITH THE THRUST OF THAT, I WOULD BE INTERESTED TO HAVE IT CONFIRM THAT THE CBD FUNDS WOULD ALLOW US TO GO TOWARDS AT A MICRO LEVEL.

YOU UNDERSTAND WHAT I'M. YES I'D HAVE TO DO A LITTLE RESEARCH ON THAT.

ALSO I'D LIKE TO MENTION WHEN ANY AMOUNT OF CDBG FUNDING TOUCHES A PROJECT THE ENTIRE PROJECT HAS TO COMPLY WITH ALL OF THE CDBG REQUIREMENTS WHICH WOULD MEAN AN ENVIRONMENTAL REVIEW I CONDUCT THAT THOSE ENVIRONMENTAL REVIEWS. WE'VE HAD WHAT I WOULD CONSIDER FAIRLY STRAIGHTFORWARD OR SIMPLE TYPES OF PROJECTS. SO FOR A HOUSING PROJECT OF ANY SIZE THE ENVIRONMENTAL MAY BE A LITTLE BIT MORE IN-DEPTH. JUST TO KEEP THAT LOOK.

ALL RIGHT. WE'VE GOT ON THE DAIS ANY QUESTIONS OR COMMENTS FROM THE PUBLIC? THANK YOU MARCY. SEE AN ONGOING DISCUSSION IF

[00:15:06]

MR. ALFRED. YES, MR. ADAMS. YES, MR. BROWN.

[7.a. Consideration of Approval for the Town of Hilton Head Island’s Affiliated Agency Funding Request Applications for Fiscal Year 2024]

I'D ALSO ASK STAFF TO PLACE ON A FUTURE AGENDA THE OPPORTUNITY FOR THIS COMMITTEE TO REVIEW ALL OF THOSE MEMOS OF OF UNDERSTANDING OKAY SOME OF THEM ARE CLOSE TO NEEDING TO BE RENEWED AND OTHERS WILL NEED SOME REVISIONS THE WAY. SO WE WILL SEE THAT BEFORE US IN A FUTURE WITH THEM. WE WILL MOVE ON. WE'VE ASKED THAT THE COUNTY ECONOMIC DEVELOPMENT CORPORATION COME BACK TODAY WITH FURTHER INFORMATION.

I SEE MR. O'TOOLE AS HERE MORNING TO YOU. GOOD MORNING.

I KNOW OKAY I CAN APPROACH JOHN . HOW WE DOING? RIGHT DOWN THE LINE. I REALIZE THE LAST TIME I WAS HERE I HAD 5 MINUTES TO SPEAK AND PRICE SPOKE AN OLD FEDEX COMMERCIAL THE GUY TALKING REALLY FAST? SO I THOUGHT THAT IT WOULD BE HELPFUL FOR YOU TO HAVE SOME OF THE MATERIAL IN FRONT OF YOU IF YOU LIKE I CAN WALK THROUGH THIS OR ANSWER ANY QUESTIONS HAVE.

WELL THIS IS OUR FIRST TIME SO YOU KNOW IF YOU COULD WALK US THROUGH IT.

OKAY. THANK. YEAH, IT'S IT'S IT'S REALLY A REITERATION OF THE NUMBERS THAT I HAD PRESENTED THE LAST TIME I WAS WITH YOU.

WHAT I SHOULD GIVE YOU A LITTLE BACKGROUND IN 2017 AT THE TIME MAYOR BENNETT ALONG WITH MAYOR SILK, MAYOR KEISER LING AND MAYOR MURRAY AND PORT ROYAL ATTENDED A CONFERENCE HELD BY THE HILTON HEAD AREA REALTORS ASSOCIATION AND THE BOOTH FOR JASPER FOR REALTORS ASSOCIATION AT WHICH BOBBY HIT THE $4 EACH OR A HALF MILLION THE FOUR JURISDICTIONS COMBINED AND THERE WAS A QUESTION IS HILTON HEAD PAYING THE LION'S SHARE? THE ANSWER IS NO. THE EVEN THE SMALLER #10 WHEN WHEN WE LOOKED AT IT AT OUR STRATEGIC PLANNING THINK SESSION TWO YEARS AGO SUGGESTED THAT MAYBE IT'S BASED ON ABILITY TO PAY A OR POPULATION BUT THE SMALLER TOWN SAID NO, WE WANT TO BE AN EQUAL PARTNER AT THE TABLE. SO THEY WANTED TO PAY THE SAME

[00:20:07]

PEOPLE LOOKED AT BEAUFORT COUNTY'S TAX BASE AS KIND OF A TOOL STOOL.

YOU HAVE HOSPITALITY AND TOURISM 2.5 BILLION ROUGHLY IMPACT YOU HAVE TO FENCE ANOTHER $2.5 BILLION OR $2.6 BILLION AND THERE THERE WAS DIVERSE ECONOMY SO OUR OUR FOCUS AND I HAVE OUR ASHLEY FEASTER HERE IN OUR HILTON HEAD REPRESENTATIVE CARLTON DALLAS WERE ALSO REPRESENTED BY MAYOR PERRY JUST RECENTLY ON OUR BOARD SO WE'VE FOSTERED SOME $522 MILLION OF WHAT WE'VE CALLED A DIVERSE INVESTMENTS THROUGHOUT THE COUNTY AND IT REALLY WASN'T LOOKED WHEN IT WAS FORMED TO BE LIKE A HILTON HEAD SPECIFIC FOCUS OR A BLUFFTON BUT THAT THE TAX BASE THROUGHOUT THE COUNTY HELPS ALL RESIDENTS JOB GROWTH IN BEAUFORT CAN HELP. A HILTON HEAD RESIDENT AND SO ON THE AVERAGE COMPENSATION FOR THESE JOBS IS $47,000 A YEAR AND. WE FEEL PROUD ABOUT THAT BECAUSE WE CAN PUT TWO OF THOSE WAGE EARNERS IN A HOUSE. PEOPLE CAN IMPROVE THEIR LOT IN LIFE AND PERHAPS NOT HAVE TO WORK THREE JOBS. INCENTIVE SITE GRANTS THIS IS SOUTH CAROLINA TAX COMING BACK INTO THE COUNTY LARGELY THROUGH THE DEPARTMENT OF COMMERCE AND MORE RECENTLY I MENTIONED IT LAST TIME I WAS HERE EVEN THROUGH THE DEPARTMENT OF AGRICULTURE PICTURE SOME $15.9 MILLION COMING BACK AND FOR THOSE YOU MET MY COLLEAGUE CHARLIE STONE. HE DOES A GREAT JOB MAXIMIZING WE BRING BACK TO BEAUFORT COUNTY COMPANIES. I'M STANDING HERE IN A LITTLE BIT OF THAT I MIGHT MENTION MY OLD STATE BY ACCIDENT AS I'M RAMBLING THROUGH BECAUSE CONNECTICUT HAD A BIG NIGHT LAST NIGHT AND I WANT TO PULL BUT REAL ESTATE REAL ESTATE ABSORBED INCOME IN THIS VAST AREA 1.1 MILLION AND WE'RE A LITTLE DIFFERENT THAN SOUTH CAROLINA COUNTIES WHERE THEY'RE THEY'RE HAPPY TO LAND VW PLANT WHICH IS GREAT. OUR APPROACH AND WE THINK THE REASON PREVIOUSLY IS ECONOMIC DEVELOPMENT WERE UNSUCCESSFUL WHERE THEY WERE TRYING TO GET GET THOSE BOEINGS THE BMW AND IF YOU LOVE THE ENVIRONMENT AND YOU KNOW THEY HAD AND OUR X INDUSTRIES UP AT THE UP OFF OF FINCH ROAD THERE WOULD BE AN EXAMPLE THOSE WAGES ARE 111% OF WHAT WE'RE SEEING ACROSS THE COUNTY WITH THE JOBS WE'RE CREATING.

SO OBVIOUSLY HILTON HEAD'S GOING TO ATTRACT A HIGHER PAYING IN IN MOST INSTANCES JUST DUE TO THE COST OF THE REAL ESTATE UNDERLYING REAL ESTATE AND INVESTMENT INCENTIVE AND SITE GRANTS SPECIFICALLY TO HILTON HEAD $2.5 MILLION OR 16% AND THEN REAL ESTATE NO ONE ABSORB 9%. WE'RE KIND OF LUCKY BECAUSE JUST GOING BACK TO OUR BROOKS INDUSTRIES OVER OVER THE LAST FOUR YEARS THEY PROBABLY HAVE INVESTED SOME 11 OR $12 MILLION AND IN A VERY SMALL 10,000 SQUARE FOOT FOOTPRINT. SO THAT'S KIND OF THE REASON THE ACTUAL PROJECTS ARE LISTED HERE. THEY ARE RANGE FROM A BREWER THREE THAT'S UNDERWAY AT THE SOUTH END OF THE ISLAND NOT NAMED YET ORYX INDUSTRIES HAD AN INITIAL AND THEN A MOVE TO THEIR OWN FACILITY AND FEW OF THESE DOWN BELOW YOU SHOULD

[00:25:08]

WE HAVE BEEN WORKING WITH THE HOTELIER LOOKING AT DOING A $60 MILLION INVESTMENT SOUTH INTO HILTON HEAD AND THEY'RE IN A DUE DILIGENCE AUCTION STAGE NOT SOMETHING WE ARE FOCUSED ON FROM 66 THAT WASN'T SO THERE WAS A QUESTION ABOUT ECONOMIC IMPACT.

WE ARE GOING TO GO WITH THE SPREADSHEET YOU SAW ON PAGE ONE.

CLEMSON IS GOING TO WORK WORK THROUGH AN EVALUATION BUT I THOUGHT WHAT I WOULD DO IS EXTRAPOLATE USING REALLY THE PROJECT ONE ONE AND THEN BACK OFF CONSERVATIVE ROUGHLY I PROVIDED COPIES OF TWO ECONOMIC IMPACTS WHICH I'LL GO THROUGH PRETTY QUICKLY BUT WE COULD VERY CONSERVATIVELY AND WE'LL GET YOU FIRM NUMBERS IT JUST TAKES A WHILE TO GET HOME SINCE Q AND THEN TO GET THE ECONOMIC IMPACT REPORT DONE BUT I, I FEEL VERY CONFIDENT THAT WHAT WE'VE IDENTIFIED THE 253 JOBS MULTIPLY THE MULTIPLIER EFFECT IS AN EXCESS OF 600 JOBS THE IMPACT JUST FROM WAGES NOT NOT MENTIONING THE INVESTMENT ESTIMATE THAT THE COMPANIES MADE IS ANOTHER $95 MILLION AND BUSINESS SPENDING 47 OR $48 MILLION OR SO AND WE'LL I'LL WALK YOU THROUGH AND TO TWO DIFFERENT TYPES OF ECONOMIC REPORTS WE GET ONE FROM A HILTON HEAD RESIDENT WE COULD BE A GOOD TEAMMATE THAT INDIVIDUAL AND AND INTRODUCE THEM NOT ONLY TO WHAT WE KNOW ABOUT THE IF THEY'RE COMING FROM AWAY BUT ALSO I WANT TO THANK YOU VERY MUCH FOR BEING HERE OUR MISSION IS THE PRESERVATION OF WORLD SOUND WHEN THE ECONOMIC, SOCIAL AND HR COMMUNITIES AND PEOPLE BUT GONE ALONG YOU CAN GIVE ME SOME LANGUAGE IF YOU WANT ME TO WRAP UP BUT DATA CORE PARTNERS JUST TOOK A AT AND SPOKE TO THE FOLKS AT WATERSON BRANDS ON THE ONE PROJECT AND SO YOU CAN SEE THE AND THIS ONE WE CAN TALK

[00:30:03]

SO I APOLOGIZE THAT THEY DON'T THEY DON'T USE THE SAME WINDOWS TO LOOK AT THE IMPACT AND THAT THROUGH OUTPUT SOME DECREASE OR OR EIGHT YEARS OVER $133 MILLION OF IMPACT NOW SOME PEOPLE CAN BE CYNICAL ON THE ECONOMIC IMPACT. ALL ECONOMISTS WOULD AGREE AGAIN IF YOU THROW A STONE IN THE WATER YOU'RE MAKING INVESTMENT IN A COMMUNITY.

THERE ARE RINGS CREATED THAT ARE LARGER THE INITIAL INVESTMENT SO I HOPE THAT'S HELPFUL. I KNOW YOU WERE LOOKING FOR THE THE ACTUAL ECONOMIC IMPACT BUT I BELIEVE WE HAVE CONSERVATIVELY GIVEN GIVING YOU THAT ON PAGE TWO OF MY SUMMARY AND WE'LL GET IT IN DETAIL WHEN CLEMSON GETS IT TO US. OKAY THANK YOU SO SO SORRY.

NO THAT SOUNDED LIKE APPLAUSE THANK YOU MR. ON TO I THINK THAT WAS AN EXCELLENT AND INFORMATIVE PRESENTATION. I DO AGREE WITH YOUR OBSERVATION THAT INVESTMENTS IN THE OTHER PARTS OF THE COUNTY OUTSIDE OF HILTON HEAD ARE ALSO GOING TO HAVE A POSITIVE IMPACT ON THE ISLAND AS WELL. OBVIOUSLY WE ARE INTERESTED IN WHAT GOES ON HERE.

WHEN I LOOK AT YOUR LIST ON THE BOTTOM OF THE FIRST PAGE I SEE SEVERAL OF THOSE THAT THAT I RECOGNIZE AS HILTON HEAD OPERATIONS. MY QUESTION IS SINCE I'M NOT FAMILIAR OVERALL WITH HOW YOU ACTUALLY GO ABOUT DOING WHAT YOU DO, CAN YOU TAKE ALL THREE OR SIDE HUSTLE BEER AND SAY WHAT WHAT ACTUALLY DO YOU OR YOUR OFFICE DO IF I WERE CHATTING WITH YOU FOR A PERIOD OF TIME WHAT DO YOU DO WITH THOSE TYPES OF TRANSACTIONS NOW SOME PEOPLE THINK WE'RE RELATED BECAUSE YOU ASKED THE RIGHT QUESTION.

L THREE IS A GREAT ONE FOR ME TO SHARE WITH YOU SO THREE WAS FORMERLY KNOWN AS AS KIGER CARLTON DALLAS WAS AT THE TIME ON SYNOVUS BOARD INTERACTING WITH TOM HENNES WHO HEARD FROM OH GOSH DON'T FAIL ME NOW MYERS THAT HE HAD HE WAS ABOUT TO CLOSE ON THE BUSINESS WE HAVE TO WAIT UNTIL THE NEW YEAR TO MAKE CONTACT WITH THE NEW OWNERS.

SO L THREE BUYS IT FROM KIGER. KIGER SPENT A FAMILY BUSINESS FOR A WHILE.

THEY THEY HAD I THINK CELEBRATED ARGUMENTS WITH THE TOWN OVER THEIR TAXES AND STUFF THAT SO WE GO IN THERE AND SAY REGARDLESS OF WHAT'S HAPPENED IN THE PAST WE'D LIKE TO HELP YOU WITH YOUR FUTURE SO THANKS TO CARLTON AND THOMPKINS FOR TIPPING US OFF ON THAT SO HAVING OUR EAR TO THE GROUND IN THE COMMUNITY IS JOB ONE NO ONE AND I CAN TELL YOU THAT NATIONAL SAY THAT 82% OF ALL JOBS CREATED A COMMUNITY COME FROM A COMPANY ALREADY IN YOUR

[00:35:06]

HARRIS AND SO WITH OUR RELATIONSHIP THE GENERAL MANAGER CALLS US OUT AND SAYS, YOU KNOW, I JUST WANT TO GIVE AN UPDATE THAT YOU'RE GOING TO BE HEARING FROM A NATIONAL SELECTION CONSULTANT OUT OF CHICAGO AND WE WOULD YOU'RE GOING TO HAVE TO ANSWER SOME QUESTIONS, CAN'T GIVE YOU ALL THE DETAILS BUT WE'RE GETTING TIPPED OFF BECAUSE WE HAVE RELATIONSHIP THAT THIS FACILITY AT 100 MARSHALL ROAD IS IN JEOPARDY AND PEOPLE HEAR ULTIMATELY THAT WE'RE COMPETING WITH PITTSBURGH AND ORLANDO AND PEOPLE SAY WELL WHO WOULD GO TO PITTSBURGH? NO OFFENSE TO PITTSBURGH BUT THAT'S WHAT HILTON HEAD RESIDENTS THINK. WHY WOULD THEY GO TO PITTSBURGH ? WOULD YOU GO TO PITTSBURGH BECAUSE THEY HAVE CARNEGIE MELLON AND MATERIAL PROGRAMS THAT THAT WOULD COMPEL A COMPANY THAT MAKES CLASS FOR LASERS TO BE INTERESTED IN BEING IN PITTSBURGH. SO WE GOT TOGETHER WE, GOT A PROJECT MANAGER ASSIGNED TO THE CASE BY THE SOUTH CAROLINA DEPARTMENT OF COMMERCE. WE WENT WENT BACK TO MY BOARD AND SAID THIS IS A VERY COMPETITIVE SITUATION WITH FLORIDA, HAS A GREAT AEROSPACE SECTOR MUCH MORE DOMINANT THAN HILTON HEAD OR MARSHLAND AND SO WE'RE COMPETING HERE.

WHAT'S THAT HARRIS IS IN MILLBURN AS WELL, ARE THEY NOT? HARRIS IS IN MILLBURN AS WELL.

YEAH, YEAH, YEAH. BIG, BIG FOOTPRINT IN FLORIDA. EXACTLY AND SO WE WE GO BACK TO MY BOARD AND SAY HEY WE WE'VE GOT TO PUT SOME CASH IN PLAY AT THE LOCAL LEVEL.

AND SO WE GAVE THEM A $2,000 PER PER JOB RETENTION TO KEEP THEM HERE.

SO WE BROUGHT SOME COUNTY FUNDS ONTO HILTON HEAD ISLAND TO KEEP THAT COMPANY.

ULTIMATELY WE WIN THE PROJECT NOW WHEN YOU THEN YOU TO KEEP TALKING TO THEM AND THEY WERE A SPONSOR OF OUR OUR CONVERT SUMMIT AND REALLY MORE A PART OF THE COMMUNITY TODAY THAN THEY WERE WHEN WE GOT HERE AND THERE WAS KIND OF A ROUGH SPOT OVER TAXES AND STUFF LIKE THAT AND SO ULTIMATELY WHY WE KEEP THEM IT'S NOT IT'S NOT ALL THE GREAT THINGS I DESCRIBED TO YOU THEY HAVE THESE KILNS THERE ON MARSHLAND ROAD AND I WE CAN PROBABLY GET THE COUNCIL A WALK THROUGH BECAUSE YOU'RE BEING PRESS THEY MAKE THE GLASS THAT GOES INTO THE MOST OF THE LASERS THAT PEOPLE ARE USING EVEN MEGAWATT ON ARROW ROAD AND ELECTRONICS WHO ARE PROVIDING LASER IS FOR SURGICAL NEEDLES ON ARROW ROAD 80% OF SURGICAL METER NEEDLES USE MEGAWATT LASERS VICTORINOX IS MAKING LASERS FOR THE ABRAMS TANK ON ON ARROW ROAD GOODNESS.

BUT ULTIMATELY WHY DO WE KEEP THEM THERE? PATENT HAD EXPIRED EVERYONE'S TRIED MATCH THE GLASS THEY MAKE A MARSHLAND ROAD AND ULTIMATELY THEY HAD THESE OLD KILNS THAT THE SENIOR MR. MYERS HAD HAD HAD BUILT AND THEY WERE AFRAID THAT IF THEY DISASSEMBLED THEM AND REASSIGNED THEM OR ASSEMBLED THEM IN MELBOURNE, ORLANDO, PITTSBURGH THEY WOULD LOSE THE MAGIC THAT THEY HAVE ON MARSHLAND ROAD SO IT WASN'T ALL US BUT A LOT OF BUSINESS.

ONE OF MY MENTORS BOSS FROM MY PRIOR JOB USED TO SAY THAT PEOPLE DO BUSINESS WITH WHOM THEY LIKE DOING BUSINESS WITH AND EVEN MAJOR CORPORATIONS ARE LIKE THAT.

SO ESTABLISHING THAT RELATIONSHIP, HAVING TOM HAYNES TALK TO CARLTON CARLTON TALK TO JOHN WE JUMPED ON IT AND TODAY I CAN TELL YOU CHARLIE STONE OUR SENIOR PROJECT MANAGER HAS A GREAT RELATIONSHIP THERE WITH . IF YOU WANT ME TO GO ON I CAN GO ON TO THE EXPANSION AT THE BANK OF AMERICA IT'S CALLED THE BANK PROJECT IT'S SIDE HUSTLE BEER. YOU KNOW WE'VE WORKED WITH LJ BUSH OVER THE YEARS.

MY YOUNG COLLEAGUE IS GOING INTO HILTON HEAD HIGH SCHOOL WITH LJ TRYING TO IMPACT KIDS LIVES, BRINGING IN EXPERTS FROM INDUSTRIES IF SOMEBODY A YOUNG GUY IN GROUP IS INTERESTED IN GOING INTO AEROSPACE CHARLIE AND LJ HAVE LOCKHEED MARTIN INTO HILTON AT HIGH SCHOOL TO

[00:40:05]

I WOULD CONGRATULATE AND YOUR TEAM ON AN OUTSTANDING RECORD AND DOING THE JOB THAT YOU WERE CHALLENGED TO DO. LOOKING BACK TO PRIOR EXPERIENCE WITH A LOCAL ADC YOU KNOW WHAT YOU'RE DOING AND YOU'RE GETTING THE JOB DONE. I'M INTERESTED IN WHAT WE IN THE TOWN CAN TO FURTHER IMPROVE THE ENVIRONMENT SO THAT YOU CAN BRING EVEN MORE IN.

DOES ANYTHING JUMP OUT IN YOUR MIND THAT WE MIGHT BE ABLE TO WORK ON TO IMPROVE TO PROMOTE MORE BUSINESS DEVELOPMENT HERE AND MORE DIVERSE DEVELOPMENT? I THINK CLEAR DIALOG IS THE FIRST STEP I CAN TELL YOU ON PROJECT CLOUD. YOUR ADMINISTRATOR MANAGER MARK MARK ORLANDO HAS HAS HAD JOSH GRUBER AND BEN WORK WITH US ON THAT.

SO JUST REAL CLEAR COMMUNICATION. I WOULD SAY WHEN WE BRING IN A PROJECT WE'RE GOING TO DO A BRIEFING WITH DAVID AMES AND THE OWNERS OF THAT COMPANY TOMORROW AFTERNOON AND IF ANYONE'S INTERESTED IN JOINING US, YOU'RE WELCOME TO BUT I THINK JUST CLEAR COMMUNICATION DEVELOP SUCCESSFUL DEVELOPER SAID TO ME A WHILE BACK OR REPEATED NUMEROUS TIMES SIMPLE SWIFT AND YOU DON'T HAVE TO SAY YES TO A PROJECT WE BRING IN BUT IF IF IT DOESN'T LOOK LIKE IT'S A FIT FOR YOUR COMMUNITY LET ME AND LET THE INVESTORS KNOW AS EARLY AS WE CAN SO THAT THEY DON'T WASTE TIME WITH LAWYERS AND ENGINEERS.

SO THAT'S NUMBER ONE. I THINK YOU'RE DOING A LOT OF RIGHT THINGS ECONOMIC DEVELOPMENT IS JUST ONE SPOKE IN YOUR WHEEL. I LOOK AT LIFE AS A BALANCE WHEEL AND I THINK THAT THE NUMBER ONE SPOKE IN BEAUFORT AND CERTAINLY HILTON HEAD IS THE ENVIRONMENT. THE NEXT SPOKE IS EDUCATION AND ANYTHING WE CAN DO TO HELP CREATE A PIPELINE OF TALENT AND PEOPLE AND CREATE YOUNG PEOPLE WHO WHO CAN DREAM AND ACHIEVE THAT THAT'S THE NEXT BOAT. THEN COMES ECONOMIC DEVELOPMENT.

THEN COMES WORKFORCE SKILL DEVELOPMENT AND THEN TRANSPORTATION I THINK HILL AS A RESIDENT OF HILTON HEAD I BELIEVE YOU'RE PAYING ATTENTION TO ALL THESE FOLKS.

I WENT TO A A MEETING ON GROWTH FRIDAY NIGHT WITH ALEX AND THE ADMINISTRATOR.

YOU KNOW THERE'S I THINK YOU'RE PAYING ATTENTION THE RIGHT THINGS AS WE LOOK AT IT AND I AND HAVEN'T HEARD MAYOR PERRY RUN FOR THE OFFICE I THINK REDEVELOPMENT IS THE THING THAT

[00:45:01]

YEAH. THE THEMES JOHN SOMEHOW I THINK THE TOWN WILL BE ABLE TO AFFORD THE EXTRA THOUSAND DOLLARS THIS YEAR. WHY ONE $300? LAST NIGHT I WAS GOING TO TEASE THAT I COULD THROW THAT IN. I THINK MY STEPDAUGHTER'S GOT EYES ON YOU NOW YOU'VE YOU'VE A COMPELLING CASE THAT IT'S MORE THAN A WORTHWHILE INVESTMENT FOR US AND I APPRECIATE THAT. I THINK THAT A LARGER ISSUE THAT YOU JUST BROUGHT UP SIMPLE SWIFT AND WHAT WAS THE THIRD WORD? CERTAINLY CERTAIN? IT REALLY IS THE ESSENCE OF MY COMMENT I'M THE EXAMPLE OF HEALTH THREE YEAR KIGER IS UNBELIEVABLE FOR THIS TOWN BECAUSE IF YOU ASK A RESIDENT WHAT THAT COMPANY IS OR WHERE IT'S LOCATED I'D BET 99.9% WOULDN'T HAVE AN ANSWER. MM HMM.

WATERSON AND CYTOSOL WILL HAVE A HIGHER PROFILE. YOU ARE COMMENT ABOUT THE HOTEL BEGINS TO THAT LEVEL EVEN FURTHER FOR A VARIETY OF REASONS SERVICE WORKERS AFFORDABLE HOUSING AND SO ON AND SO FORTH SO. THERE ARE MANY LEVELS OF IMPACT THAT I THINK IMPORTANT AND SO THE QUESTION THAT HOW DO WE AND I THINK I KNOW THE ANSWER BUT HOW DO WE AT THAT TOWN GAIN CONFIDENCE IN THE ALIGNMENT WITH THE PROSPECT WITH OUR COMPREHENSIVE PLAN AND THAT SORT OF POLITICAL MOOD OF THE COMMUNITY TO ACCEPT A CERTAIN OF PROPOSAL I KNOW YOU HAVE YOU AN EXPERT STAFF FOR STARTERS SO THEY USUALLY ON CAN CAN HAVE A NOT ONLY A GUT FEEL BUT I THINK THE GUT IS WORTH A LOT YOU KNOW INITIALLY YOU KNOW I MEAN IF WE HAVE A JELLY BALL PROJECT IN BEAUFORT COUNTY WE TELL THEM IT'S THIS ISN'T THE PLACE TO BE. I DON'T KNOW IF YOU'RE FAMILIAR WITH JELLY BUT I CAN DESCRIBE THEM OFFLINE BUT I KNOW THERE'S ALL THESE EFFORTS AND I HEARD THE PRESENTATIONS FRIDAY NIGHT.

THERE ARE ALL THESE EFFORTS TO GET ALIGNED SO I KNOW THOSE THINGS ARE GOING ON IF LIKE WITH THE HOUSING WORKFORCE HOUSING I JUST YOU KNOW AND I HEARD IT FROM PEOPLE ASK QUESTIONS THEY JUST WANT TO SEE THAT'S THAT'S WHERE I THINK PEOPLE BELIEVE THAT THERE IS A CRISIS AND ACTIONS GOT TO BE SWIFT IF WE CAN'T PROVIDE A SIMPLE SWIFT AND CERTAIN ANSWER THEN THEN WHEN WE TELL THE PERSON YOU KNOW THIS PROJECT CLOUD WAS HANDED TO ME AS A LEAD IN OCTOBER OF 2017 AND SO WE HAVE WORKED WITH THIS PROJECT WHEN THEY FIRST CAME IN IT WAS A $9 MILLION INVESTMENT. THEY'VE WORKED THROUGH THE ARMY CORPS OF ENGINEERS AND MEETINGS WITH THE TOWN MEETINGS WITH JOHN REMBERT AT THE AIRPORT MEETINGS THE COUNTY AND THERE'S REASONS IT'S MOVED AT THAT RATE . YOU KNOW THERE THERE'S THERE WERE ERRORS PROPERTIES INVOLVED IN IT AS WELL AND MAKING SURE THOSE FAMILIES WERE DEALT WITH FAIRLY WAS IMPORTANT TO THE ECONOMIC DEVELOPMENT CORP SO ARE TIMES WHERE IT'S NOT GOING TO BE THAT IT'S NOT GOING TO BE THAT FAST YOU KNOW YOU HAVE TO DO MORE DUE DILIGENCE.

I MEAN WE WORK WITH ONE NEED FOR ABOUT TWO AND A HALF YEARS AN AEROSPACE AND YOU KNOW WE'RE INTRODUCING THE INDIVIDUALS TO ANGEL INVESTORS AND TRYING TO WORK REAL DILIGENTLY WITH THEM.

I THE DETAIL THAT PROSPECT LEFT OUT WAS THAT HE WAS AND IS NOW SENTENCED TO EIGHT MONTHS IN JAIL. SO THE DUE DILIGENCE IS SOMETHING THAT WE ALL HAVE TO WORK NORTH OF THE BOARD. WE'RE REALLY LUCKY BECAUSE IF WE GET A LEAD WE TURN IT OVER TO THE MARINE CORPS AND SAY WHAT DO YOU THINK OF THIS BEING LOCATED NEAR AIRFIELD? BUT WE YOU KNOW, YOU'RE YOUR PLANNING STAFF ADMINISTRATION HAS TO DO THAT DUE DILIGENCE AND WE HAVE TO RESPECT THAT SO IT WELL IT'S IT GETS TEMPERED AT IF IT LOOK IF IT DOESN'T

[00:50:08]

THAT'S ALL. THANK YOU MR. JAMES THIS OF LOOKING FORWARD TO THE THE REPORT YOU WILL RECEIVE FROM FROM CLEMSON. YEAH I WANT YOU TO HAVE THAT IN HAND IF YOU COULD COORDINATE WITH STAFF TO COME BACK AND SHARE THAT BE GREAT.

THE ONE THING THAT'S REALLY STICKING IN MY MIND AS I LOOK AT THE HILTON HEAD RESULTS, THE REAL ESTATE KNOW AND ABSORBED AND YOU KNOW WE HAVE A LOT OF DISCUSSION AROUND REDEVELOPMENT IN OUR DILAPIDATED BUILDINGS AND SOMEONE I'D BE INTERESTED IN THAT THAT 98 THAT WAS AN EYESORE SQUARE FEET I'M ASSUMING THAT MAJORITY OF THAT WAS SOMETHING THAT WAS ABSORBED NOT NEWT OKAY BUT IN THE FUTURE IF YOU COULD KIND OF PUT THAT OUT THAT BE GREAT AND TO THAT POINT I THINK THE CLEMSON REPORT WILL HELP US AS WELL.

I AGREE WITH THE TWO OPEN LINES OF COMMUNICATION. WE ARE GOING TO BE FACED WITH REWRITING OUR LAND ACQUISITION MANUAL AND I THINK THAT'S VERY GERMANE TO THE TIME MODEL TO REALIZE THE SPOT FOLKS AND THE WILL EDUCATION BEING ONE OF THEM.

SO WE WELCOME YOU NOT ONLY AS A BOARD MEMBER BUT AS A BOARD MEMBER OF OUR COUNTY EDUCATIONAL SYSTEM. THANK YOU FOR BEING HERE, SIR. THANK YOU VERY MUCH TO THE COUNCILMAN ON THE DAIS AND THANK YOU FOR THAT WARM WELCOME .

I'VE WORKED VERY CLOSELY WITH MR. TO THE ECONOMIC DEVELOPMENT CORPORATION FOR ABOUT FIVE YEARS AND I BELIEVE AS A BOARD MEMBER ELATED TO SEE MAY APPEAR TO JOIN AS AN ACTIVE MEMBER.

I THINK THAT BRINGS A LOT OF INFLUENCE HEALING HERE CONTRIBUTES CLOSE TO 49 50% OF THE INCOME OF COUNTY SO HAVING ARTICULATELY TO THERE I THINK WILL MAKE A DIFFERENCE I JUST TO COVER SOME POINTS I'LL BE VERY BRIEF ONE IS I WAS VICE CHAIR OF THE HILTON HEAD ISLAND ECONOMIC DEVELOPMENT CORPORATION. WE FAILED MISERABLY AND THIS TIME THIS WE HAVE DEAL MAKE

[00:55:28]

I PERSONALLY HAVE APPLIED TO THE US PTO FOR A TRADEMARK OF THE PHRASE SILICON GARDEN IF THAT COMES TO FRUITION WE WILL ABSOLUTELY BE HAPPY TO SIGN THAT INTO PERPETUITY TO THE TOWN OF HILTON HEAD IN THE LOW COUNTRY FOR USE WE'RE JUST TRYING TO PROTECT IT BUT THAT INDICATES HOW MANY COMPANIES ACTUALLY LOOKING AT US AS A VIABLE PLACE TO EFFECT THE FACT THAT BUT ON THE PRIVATE SIDE THE GROUP THAT I'M A PART OF WE ACTUALLY ENTERTAIN A LOT OF DIFFERENT HIGH TECH OPPORTUNITIES IS DUE TO OUR GLOBAL BACKGROUND THE ONE WE'RE PURSUING NOW WHICH THEY HAVE VERBALLY SPOKEN WITH MR. AND HE'S TAKEN THEM TO LUNCH OR DINNER THEY ARE WILLING TO RELOCATE HERE. THEY'RE CURRENTLY IN GEORGIA ON THE PRIVATE SIDE WE JUST HAD A ZOOM CALL WITH THE SOUTH AMERICAN WHICH IS LOOKING TO ACTUALLY ACQUIRE THE INTELLECTUAL PROPERTY AND OUR ALGORITHMS AND IF THEY LOCATE HERE WE COULD HAVE A POTENTIAL HERE QUARTER. SO WE THINK THAT'S THE BENEFIT OF ACTUALLY YOU KNOW HAVING AN EDC THAT IS REALLY FOCUSED ON HILTON HERE WE HAVE SO MANY ATTRIBUTES GOTTEN EVERYBODY AROUND THE WORLD KNOWS ABOUT THEM AND BEING ABLE TO KEEP OUR KIDS IS ONE OF THE STRATEGIC BENEFITS SO YOU VERY MUCH. THANK YOU SIR.

IN IN ALL ELSE GREAT ANY MORE DISCUSSION ON THE HERE ON THIS PARTICULAR ONE OKAY.

WE WILL MOVE ON. WE'VE ALSO ASKED THAT HABITAT FOR HUMANITY CONFIRMED FOR US.

GREAT MORNING. GOOD MORNING. THANK FOR ALLOWING US TO COME BACK AND SHARE A LITTLE ADDITIONAL INFORMATION WITH YOU.

I HAVE WITH ME OUR BOARD CHAIRMAN AND A MEMBER OF OUR SITE PLANNING COMMITTEE AS WELL THAT RALPH MARLER ONE OF THE QUESTIONS THAT CAME UP THE LAST TIME THAT WERE HERE WAS ABOUT TIMING FOR FOR BUILDING OUT IF LAND WERE DONATED TO US OR IF WE RECEIVED THIS GRANT AND WE HE PURCHASED LAND HOW LONG IT WOULD TAKE US TO GET 8 TO 10 HOMES.

SO I THINK THINK YOU HAVE IN FRONT YOU OR IT'S BEEN PROVIDED TO YOU A TIMELINE FOR THAT WHAT I WANT YOU TO SEE IN THIS TIMELINE I TOLD YOU ALL THAT IT WOULD BE ABOUT TWO YEARS IS IS THAT WE'RE NOT JUST TALKING ABOUT CONSTRUCTION OF HOME HOMES.

WE'RE TALKING ABOUT SELECTING OUR FAMILIES AS PART OF THAT PROCESS AND AND GIVING THEM THE TIME THAT THEY NEED TO THEIR SWEAT EQUITY HOURS SERVED. THAT'S AN IMPORTANT COMPONENT THIS PROGRAM SO THAT THEY'RE PART OF THE THEY'RELASSES THAT P THEM WITH BUDGETING AND PREDATORY LENDING AND CREDIT AND INSURANCE AND HOME MAINTENANCE ALL THOSE THINGS THAT THEY HAVEN'T ALWAYS DEALT WITH IN THE PAST. THEY NEED TIME TO DO THAT.

SO IT'S ALL SPELLED OUT IN THERE AS WELL AS WORKING WITH OUR VOLUNTEERS WHICH MAKES OUR HOMES AFFORDABLE AND DOING THE FUNDRAISING TO BRING IN THE FINAL FUNDING TO BUILD THOSE

[01:00:01]

I'LL START WITH YOU MR. AMES. ANY QUESTIONS? I'LL ONLY MAKE A COMMENT BECAUSE I DON'T HAVE A QUESTION. I HOPE THE THE RESIDENTS OF THIS ISLAND CAN SOMEHOW WORKING ON A PUBLIC PRIVATE PARTNERSHIP ARRANGEMENT RIGHT NOW OCCURS TO ME THAT THAT COULD BE ADAPTED TO THE HABITAT MODEL AS WELL.

SO WE NEED TO GET OUT AND FIND THESE SITES AND CONTINUE TO WORK TO IMPROVE WORKFORCE HOUSING SITUATION ON THE ISLAND AND WE KNOW YOU'RE A VITAL PARTNER FOR JUST THAT TOO THAT WAS DONE WE APPRECIATE THE TIME THAT WAS PRESENTED IT REALLY OPENED MY EYES AND MY COLLEAGUES EYES AS TO WHAT GOES INTO IT UNDERSTANDING THAT YOU HAVE TO ALSO, YOU KNOW, PIVOT WHEN IT COMES TO DEALING WITH THE POTENTIAL HOMEOWNERS. MOST OF THEM ARE WORKING ON THE END THE JOB IS GOING TO COME FIRST. RIGHT.

SO YOU HAVE TO BE VERY FLEXIBLE AS YOU AS YOU GO THROUGH THAT PROCESS.

RIGHT. SO WHAT I'D LIKE TO DO WITH WITH WITH HABITAT THE TOWN MANAGER HAS WHOLE BOARD HAS PLAYED WITH HOUSING ON HILTON HEAD.

OKAY SO WE HAVE MR. GRUBER, I'M SURE THAT YOU'RE TAKING NOTES OVER HERE.

WE DO ASK THAT WE TAKE SOME TIME WITH MS.. DOOLEY AND WHOMEVER SEE APPROPRIATE TO HAVE A FURTHER DISCUSSION AND ABOUT HABITAT WITH THE TOWN MANAGER, MYSELF AND THE MAYOR AND LET'S DO THAT IN VERY SHORT ORDER OKAY I'M GOING TO PUT A NUMBER ON THIS TEN DAYS BECAUSE WE'RE ABOUT TO SEE AND WE NEED TO TO MOVE FORWARD ACCORDINGLY AND WE NEED TO HAVE A DEEPER DOVE HERE WITH WHAT THE FOLKS THAT I'VE JUST MENTIONED.

MR. GRUBER OKAY. SO WE WILL SEE YOU VERY SOON IN A MORE INTIMATE SITUATION.

OKAY. THANK YOU VERY MUCH. OKAY.

ANYONE WANT TO COMMENT WHAT HABITAT FROM THE FROM THE PUBLIC.

OKAY IT BARNEY WILL BRING IT BACK TO THE I AS WE DO NOT HAVE MOTION ON THE TABLE AS FAR AS THE AFFILIATE AGENCIES ARE CONCERNED I WOULD MAKE A MOTION THAT APPROVE THE LIST OF AFFILIATED AGENCY REQUESTS WITH THE EXCEPTION OF HABITAT FOR HUMANITY WHICH WILL BE DISCUSSED WITHIN THE NEXT TEN DAYS. SECOND OKAY THANK YOU FOR WOULD MAKE ANY ACTION ON THAT . THANK YOU MR. GRUBER SO IF I REMEMBER OUR QUESTIONS ON THIS PARTICULAR AGENCY WERE AROUND THE DEVELOPMENT IN THIS TEXT WHICH IN A SENSE ASSUMES A SENTENCE OF THE TAX DOLLARS TO THE USC B PROGRAM AND IT DOES GET A LITTLE BIT COMPLICATED.

[01:05:02]

SO THANK YOU FOR CLARIFYING THAT. NEVERTHELESS I'M FIRST DOES THIS PUTS US AT A VERY PRECARIOUS SITUATION WITH SORT OF FOLLOW ON ON THAT THIS IS TOWN ORDINANCE AND WE CAN COME BACK IN AND THEN THAT IN THE SAME WAY WE'RE GOING THROUGH THE AMENDMENTS TO THE ALAMO ETC. I THINK YOU MAKE THE RIGHT POINT HERE THAT SOMEHOW THIS ORDINANCE HAS PUT US IN HANDCUFFS AND WE WANT TO BE ABLE TO SUPPORT THESE AND IS VERY, VERY IMPORTANT TO US. AND SO I SUGGEST THAT WE GET ON THE AGENDA SAYING MR. GRUBER FROM A TIMING STANDPOINT, COULD WE HAVE THIS POLICY BEFORE US AND CHANGED EFFECTIVELY BEFORE WE TAKE OUR LAST STAB AT BUDGET ? YES SIR. SO YOU HAVE A REGULARLY SCHEDULED FINANCE AND ADMINISTRATIVE COMMITTEE MEETING COMING UP I BELIEVE ON THE 18TH OF THIS MONTH PRIOR TO THE TOWN COUNCIL MEETING. SO LET'S ASSUME THAT WE BROUGHT FORTH A PROPOSED ORDINANCE THIS LANGUAGE AT THAT MEETING IT'S ADOPTED BY THE COMMITTEE. IT GETS REPORTED OUT AT COUNCIL THAT SAME EVENING IT WOULD THEN BE FIRST READING OF THE ORDINANCE TOWN COUNCIL AT THE FIRST MEETING IN MAY AND THEN SECOND READING OF THE ORDINANCE AT THE SECOND AT THE SECOND MEETING IN MAY WHICH WOULD BE CONTEMPORANEOUSLY THEN WITH THE FIRST READING OF THE BUDGET BUT PRIOR TO FINAL ADOPTION WHICH WOULD NOT OCCUR UNTIL THE SECOND MEETING.

I'M SORRY THE FIRST MEETING IN JUNE SO BUDGET GETS APPROVED IN EARLY JUNE THIS.

ORDINANCE COULD BE CHANGED BY THE END OF MAY IF IT DOES MOVE FORWARD THE SUPPORT OF THE COMMITTEE IN COUNCIL I THINK THAT'S APPROPRIATE. WELL I FOR ONE WOULD BE INCLINED TO SAY THAT THIS REQUEST CAME UNDER A 5% UNDERSTANDING AND THAT WE SHOULD PROBABLY ACCEPT THAT AND ANTICIPATE TRANSITION TO A NEW ARRANGEMENT.

SO MY MY INCLINATION IS TO AS I SUGGESTED IN MY MOTION TO ACCEPT THE PACKAGE AS IT IS BUT I'M OPEN TO OTHERS OF THE COMMITTEE FEELING ABOUT MOVING FORWARD WITH THE CURRENT REQUEST WITH THE CONDITION THAT WE WILL BE CHANGING THE CODE BEFORE A BUDGET.

I THINK THAT'S AN IMPROVEMENT ON WHAT WE'VE SUGGESTED BEFORE SO LET'S MOVE FORWARD.

OKAY. ALL RIGHT. WE ARE A THIS IS OUR SECOND YEAR INTO REVIEWING THESE AFFILIATE AGENCIES REQUEST SO WE WILL CONTINUE IMPROVE AS WE GO ALONG. SO THANK YOU FOR ALL OF YOUR YOUR COMMENTS AND STAFF THANK YOU FOR YOUR SUPPORT PROVIDING US WITH THE MATERIALS THAT WE NEED.

ANY PUBLIC COMMENT ON THIS PARTICULAR TOPIC? OKAY.

SO YOU WILL MOVE BACK TO THE DIOCESE SO COULD YOU PLEASE PUT THE

[01:10:39]

I MISS THAT. YES. THE MOTION THAT WAS MADE WAS TO ADOPT THE LIST AS PRESENTED WITH THE EXCEPTION OF THE HILTON HEAD REGIONAL HABITAT FOR HUMANITY IN RELATION TO THE DISCUSSION THAT WILL OCCUR WITHIN THE NEXT TEN DAYS AND I GUESS I WAS STILL SPENDING OVER 5% OR 20% OR SOMETHING. OKAY, WE'LL TAKE ONE LAST STAB AT PUBLIC COMMENT. ANYONE OKAY. THEMES WE'RE VOTING ON IT NEXT ON DAVID MOTION TO APPROVE EVERYBODY EXCEPT YEAH AS AS I MEAN IF YOU WANT IT TO IT ACTUALLY WE HAVE TO VOTE ON THE AMENDMENT AND THEN VOTE ON THE ORIGINAL BUT.

I WANT TO MAKE SURE YOU WERE CLEAR ON YOUR AMENDMENT WHICH INCLUDED THE POLICY CHANGE WITH THE USB PROGRAM THAT IS THE AMENDED MOTION. YES I UNDERSTAND THAT THAT'LL COME TO COUNCIL AT SOME POINT. OKAY. ONE COMMENT BEFORE WE VOTE RELATING TO THE 14TH CIRCUIT SOLICITOR REQUEST OF WHICH THERE ARE TWO THAT IS TRADITIONALLY NOT A MUNICIPAL FUNCTION, IT'S A COUNTY FUNCTION AND SOME IS A STATE FUNCTION. IT'D BE FAR MORE APPROPRIATE THIS MONEY WERE COMING OUT OF THE COUNTY FUNDS AND OUT OF MUNICIPAL FUNDS. HOWEVER THAT'S SOMEWHAT COMPLICATED BY THE FACT THAT THERE ARE FOUR MUNICIPALITIES MAKING EQUAL CONTRIBUTIONS TO THE FOUR LARGEST ONES IN THE COUNTY AND. HYPOTHETICALLY, IF ALL FOUR OF THOSE COMMITTEE COMMUNITIES DECIDED NOT TO DO THIS BECAUSE IT'S A COUNTY FUNCTION WE MAY HAVE A PROBLEM THAT THE COUNTY COULD GIVE BACK COME BACK AND LEVY ANOTHER TAX AND IN EFFECT WE'D BE BACK IN THE SAME PLACE SO WELL THINK IT'S IT'S A MISALIGNMENT TO HAVE MUNICIPALITIES SUPPORTING THIS I DON'T THINK IT'S GOING TO BE NECESSARILY PRODUCTIVE TO MAKE AN ISSUE OUT OF IT BUT END UP. MR. GRANT, WHAT DID THE 14TH CIRCUIT SOLICITOR BOTH OF THESE REQUESTS DO NOT COME ALONG WITH ANY TYPE OF MEMORANDUM OF UNDERSTANDING AT THE MOMENT? NO, SIR. BOTH OF THOSE WERE REQUESTS THAT WERE IMPLEMENTED A NUMBER OF YEARS AGO AND THEN HAVE BEEN ONGOING IN NATURE TO CONTINUE TO FUND SPECIFIC OF THOSE PROGRAMS ONE BEING THE MULTIPLE MULTI-DISCIPLINED RECORD, THE OTHER BEING A FULL TIME STAFF PERSON IN THE CAREER CRIMINAL PROGRAM. OKAY, WE WILL ASK THAT YOU AS YOU BRING FORWARD EMOLUMENTS THAT ARE IN PLACE THAT YOU BRING THIS AS WELL JUST SO WE CAN KEEP IT AS A DISCUSSION ITEM. OKAY.

TO ALFRED'S POINT, THANK YOU. OKAY. SO WHEN WE VOTE ON WE'RE RECOMMENDING THIS LIST FORWARD WITH THE CHANGES THAT HAVE BEEN SUGGESTED.

ABSOLUTELY. THANK YOU. BUT MR. GLOVER.

THERE IN EFFECT HAS BEEN AN AMENDMENT TO THE MOTION DO YOU WANT US TO GO TO THE RIGMAROLE OF HAVING TO VOTE? SO AT THIS POINT BECAUSE THE MAKER OF THE MOTION AND THE SECONDER HAVE AGREED TO THE CHANGES PRIOR TO ANY VOTES BEING TAKEN I THINK FINE AT TOWN COUNCIL BECAUSE THERE WOULD HAVE BEEN A PRIOR VOTE IN COMMITTEE I THINK YOU WOULD NEED TO GO THE FORMAL ROUTE OF AMENDING IT THROUGH THROUGH MOTION.

BUT AT THIS POINT BECAUSE THIS IS AN INITIAL MOTION AND BOTH THE MAKER AND THE SECOND ARE IN AGREEMENT WITH THE FINAL WORDING, I THINK YOU CAN VOTE AS AMENDED.

GOT IT. OKAY. THANK YOU.

SO COULD YOU PLEASE CALL THE ROLL? ABSOLUTELY, MR. STANFORD OR THE MOTION? MR. ALFORD YES. MR. REED YES.

[7.b. Town of Hilton Head Island 3rd Quarter Financial Update]

NEXT UP WE HAVE MR. CHOI WHO WOULD BE GIVING US A FINANCIAL UPDATE.

WELCOME SIR. THANK YOU, MR. CHAIR. ACTUALLY HAVING ONE OKAY.

[01:15:25]

THESE NUMBERS ARE STILL COMING IN. BUT I WANTED TO GIVE YOU AS RECENT A NUMBERS AS WE COULD AND SO WE ARE A COUPLE OF KEY ISSUES.

WE CONTINUE TO WATCH OUR REVENUES. WE TO WATCH OUR SPENDING AND WE CONTINUE TO MAKE RECOMMENDATIONS ON ADJUSTMENTS IF NECESSARY.

SO WE'LL WE'LL KEEP THAT GOING . THE TOWN IS CONTINUING TO BENEFIT FROM TOWN COUNCIL'S PREVIOUS ACTIONS SO BUILDING RESERVES DIVERSIFY REVENUE STREAMS, INVEST IN THE ISLAND. ALL THREE OF THOSE THINGS ARE BENEFITING THE TOWN TODAY.

JUST A LITTLE BIT OF A LOOK BACK THIS IS LIST AND IT'S A LOT OF NUMBERS BUT WE JUST TOOK THE TOP TEN REVENUES IN 2022 AND NINE OF THE TEN WERE NUMBER ONE ALL TIME BEST IN THE 10TH WAS SECOND ALL TIME BEST AND SO WE HAD A GOOD YEAR LAST HERE'S MY DISCLAIMER THIS DISCLAIMER IS THAT NOT EVERYTHING IS IN AND SO YOU'LL NOTE YOU'LL NOTICE THAT THERE'S A COUPLE OF ITEMS THAT WE HAVEN'T YET RECEIVED WE HAVE POSTED BUT IT GIVES YOU AT LEAST AN EARLY LOOK AT HOW ARE WE DOING AND THAT'S THAT'S OF THE QUESTION THAT I'M TRYING TO ANSWER HERE IS HOW WE DOING GENERAL FUND REVENUES YOU CAN SEE THERE'S A LOT OF VARIABILITY WITHIN ANY ONE MONTH AND SO WE'VE GOT AND I WOULD CHARACTERIZE THIS AS A MIXED BAG SOMETIMES UP SOMETIMES BUT IT SEEMS TO BE THAT WE'RE GETTING BACK TO NORMAL WE HAD TWO YEARS OF REALLY EXCEPTIONAL REVENUES AND NOW IT SEEMS LIKE WE'RE MORE NORMAL YEAR TO DATE WE'RE BEATING LAST YEAR YEAR TO DATE WE'RE BEATING THE LAST SEVERAL YEARS.

SO IT'S A GOOD START YET IF YOU LOOK WE'RE NINE MONTHS IN AND SO YOU LOOK AT APRIL MAY AND JUNE ARE STILL SUBSTANTIAL AMOUNT OF COLLECTIONS YET TO GO FOR OUR GENERAL FUND SO WE LOOK GOOD NOW NINE MONTHS IN BUT WE'RE NOT FINISHED YEAR TO DATE COLLECTIONS I WOULD CHARACTERIZE AS A MIXED BAG. JUST A COUPLE OF HIGHLIGHTS TAX INCREMENT FINANCING OR TIFF SURPRISINGLY LOCAL TAX A LITTLE BIT BETTER THAN LAST YEAR WHICH IS STRONG.

WE 2022 WAS A GOOD YEAR AND WE'RE SLIGHTLY ABOVE THAT THAT'S GREAT STATE AID TAX SLIGHTLY ABOVE THAT REAL ESTATE TRANSFER FEE WHERE YOU CAN SEE THE EFFECT OF INTEREST ON THE REAL ESTATE TRANSACTIONS ARE SIGNIFICANTLY DOWN. BUT IF YOU WERE TO TAKE OUR COLLECTIONS YEAR TO DATE ON MARCH THAT'S A PRETTY GOOD YEAR COMPARED TO NORMAL.

IT'S JUST WE'RE COMPARING TO 2022 WHICH WAS EXCEPTIONAL AGE TAX 3.7%.

WE LIKE THAT IF YOU LOOK AT ROAD USAGE FEE THAT'S BEEN PAUSED AND SO THAT'S WHY THE 97.7% DECREASE UNTIL THE LITIGATION IS RESOLVED BUSINESS LICENSES I DID WANT TO TALK A LITTLE BIT ABOUT THAT AND WE'LL HAVE MORE DETAIL COMING UP BUT THERE SOME ONE TIME RECEIPTS LAST YEAR THAT WE DIDN'T THE BENEFIT OF THIS YEAR AND SO OUR EMS REVENUES WE'VE GOT TWO DYNAMICS THROUGH THE BUDGET IN THE YEAR TOWN COUNCIL VOTED TO TIE THE EMS RATES TO THE FEDERAL RATES AND OUR NUMBER OF CALLS ARE UP AND SO BOTH OF THOSE DYNAMICS ARE HELPING OUR CURRENT YEAR COLLECTIONS OUR LAST LINE PERMITS ARE NOT YET POSTED FOR THE YEAR SO THEY'RE STILL CALCULATING OUT ALL THE RECEIPTS THAT ARE MARCH REVENUES AND THEY'LL BE POSTED WHEN YOU GET THE MARCH FINANCIAL STATEMENTS. SO JUST FROM A PICTURE PERSPECTIVE, TWO THIRDS COLLECTED ALMOST AND ABOUT A THIRD YET TO GO PROPERTY TAXES.

HERE'S OUR SPLIT IT'S SPLIT IN JUST TWO PIECES WE USED TO HAVE THREE PIECES LAST YEAR WE HAVE A DISASTER RECOVERY FIVE MILLS THIS YEAR IT'S JUST TWO PIECES TO THE PROPERTY TAX RATE, MILLAGE RATE, PROPERTY TAXES. HERE'S A GOOD STATISTIC IF YOU LOOK AT THE TOP HIGHLIGHTED NUMBER THROUGH MARCH WE'VE BUDGET ON PROPERTY TAXES AND SO WE'RE THAT'S A GOOD NUMBER TO REPORT YOU'LL SEE LATER APRIL MAY AND JUNE ARE TRADITIONALLY NOT BIG FOR PROPERTY TAX COLLECTIONS. WE'VE BUDGET FOR PROPERTY TAXES AND SO WE CAN CELEBRATE THAT STORMWATER FEES WE'RE NOT QUITE THERE BUT ALMOST THERE AGAIN STORMWATER FEES ARE SIMILAR TO PROPERTY TAXES ON SCHEDULE BUT YET WE'LL NEED APRIL, MAY AND, JUNE TO GET US OVER 100%.

[01:20:08]

JANUARY IS QUARTERLY COLLECTIONS IS NOT AS BIG AND THEN WE'LL GET A WE EXPECT GOOD COLLECTIONS IN APRIL AND SO THAT'S ANOTHER LARGE COLLECTION MONTH IT'S COMING YEAR TO DATE WE'RE SLIGHTLY ABOVE THE THREE YEARS AND SO WE'RE HAPPY ABOUT THIS TREND AND WE CONTINUE TO BE SLIGHTLY ABOVE THE LAST THREE YEARS SHORT TERM RENTALS WE HAVE MORE APRIL WILL TELL US ABOUT SHORT TERM RENTALS AND SO I WON'T TALK ABOUT THAT BUSINESS LICENSE I HAVEN'T UPDATED THIS SLIDE I DID WANT TO POINT OUT LOCAL BUSINESS LICENSE LOOK AT HOW WEIGHTED IT IS TOWARD THE END OF THE YEAR YOU CAN SEE MARCH APRIL AND JUNE PRIMARY COLLECTIONS AND IF YOU LOOK AT THE STATE BUSINESS LICENSE THAT'S MRC COLLECTS ON OUR BEHALF GENERALLY IT'S ALL COLLECTED IN JUNE BUT IN 2022 AND 2021 THE LIGHT BLUE, THE LIGHT GREEN WE HAD ODD PAYMENTS FROM THE STATE WE FIGHT IT, WE CELEBRATE IT BUT WE DON'T EXPECT IT TO REPEAT.

AND SO THAT'S ONE OF THE REASONS WHY OUR STATE BUSINESS LICENSE ARE NOT WHAT LAST YEAR'S WERE BECAUSE IN 2022 WE GOT ESSENTIALLY AN EXTRA PAYMENT FROM THE STATE AND SO WE'LL SEE HOW THAT MEASURES OUT WITH THE JUNE COLLECTIONS. AND SO THERE'S A LOT TO COME YET WITH THAT GENERAL FUND SPENDING WE'RE TRACKING A VERY SIMILAR PATTERN AS THE PREVIOUS YEAR TO DATE SPENDING WE'RE SPENDING MORE I JUST NOTE THE LAST SEVERAL YEARS JUST BECAUSE OF COVID THERE WAS SOME HESITATION TO START THE YEAR AND ALWAYS KIND OF HESITATION WITH WATCHING REVENUES AND SO THIS YEAR I THINK THERE'S LESS OF THAT AND SO THERE'S KIND OF A MORE OF A GO AND DO THE THINGS THAT WE'RE SUPPOSED TO DO AND SO I THINK YOU SEE LESS OF THAT AND WE'RE AHEAD OF LAST YEAR ON SPENDING AND WE'LL SHOW A LITTLE BIT DEEPER DOVE ON THIS THE DIFFERENT DEPARTMENTS AND WE CAN TALK MORE ABOUT THAT I KNOW OUR CHAIR HAS ASKED FOR SOME MORE DETAIL WE'RE HAPPY TO PROVIDE MORE DETAIL BUT YOU CAN SEE THAT THE BASIC BREAKDOWN HERE OKAY THAT'S A THERE'S OUR SPENDING COMPARED TO LAST YEAR BUT A REAL COMPARISON IS HOW ARE WE DOING ACCORDING TO BUDGET OUR YEAR TO DATE SPENDING OF 33 SIX COMPARED TO OUR BUDGET OF 49 EIGHT IS 67%. SO WE'RE TWO THIRDS THROUGH THE YEAR AND WE'RE THREE QUARTERS THROUGH THE YEAR THROUGH THE END OF MARCH WE'RE 67% PAINT AND SO THAT'S A LITTLE BIT HIGHER THAN LAST YEAR. AND SO OUR EXPECTATION IS IS THAT WHILE WE HAD TURN BACK AND

[01:25:06]

SO THAT HAPPENED BACK IN NOVEMBER NET GENERAL FUND YOU CAN SEE THE FIRST THESE THESE ARE MONTHLY AND SO THE FIRST NUMBER OF MONTHS IN THE YEAR WERE SPENDING AND OF OUR REVENUES OUR SPENDING IS PRIMARILY SALARIES AND THOSE HAPPEN EVERY SINGLE MONTH OR REVENUES ARE MORE SEASONAL AND INCLUDES PROPERTY TAXES AND ONCE THEY START TO COME IN WE GO FROM BEHIND TO AHEAD AND THEN WE HOPE TO FINISH OUT SLIGHTLY AHEAD AND SO YOU LOOK AT YEAR TO DATE YOU CAN SEE THE CHANGE AND THE FIRST SEVEN MONTHS OF THE YEAR WE'RE ALL USING FUNDS USING OUR FUND BALANCE TEMPORARILY AND THEN IN FEBRUARY WITH THE PROPERTY TAX COLLECTIONS WE START TO BE AHEAD AND LOOK TOWARD OUR YEAR YEAR ENDED JUNE 30TH AND SO WE'RE IN GOOD POSITION NOT AS GOOD LAST YEAR BUT BETTER THAN THE THREE PREVIOUS.

AND SO I THINK A GOOD REPORT TO MAKE AND THERE'S JUST A LINE GRAPH OF THE SAME I SAID THE GREEN IS LAST YEAR NOT QUITE AS GOOD AS THAT BUT WE'RE BETTER THAN THREE PREVIOUS AND I'LL MAKE SURE THAT EVERYBODY'S GOT THIS AND SO WHAT SORRY DID NOT HAVE A AHEAD OF TIME OR WE'RE A BIT PUSHED OUR SCHEDULE BUT WE'LL MAKE SURE THAT EVERYBODY HAS THIS THAT WE PAID 73% WE'RE ON TRACK TO PAY DOWN POINT $7 MILLION IN PRINCIPAL THIS YEAR STORM WATER COLLECTIONS OF 5 MILLION SPENDING OF TWO BUT BEYOND SPENDING OF 2 MILLION FOR 48 IS IN CONTRACT AND SO THAT CONTRACT WORK IS IS HAPPENING AND WILL CONTINUE TO HAPPEN AND SO LOOK FOR THAT TO HAPPEN IN THE NEAR FUTURE SEE UP $45 MILLION I JUST WOULD SUGGEST TO LOOK AT THE LINK THE COPY TO OUR WEBSITE THERE'S A LOT OF INFORMATION PROGRESS REPORTS STANDARDS REPORTS ON OUR CFP AND IT WOULDN'T MAKE SENSE FOR ME TO SAY ANYTHING MORE THAN LOOK AT THE GOOD REPORT THAT FOR REMAKES REVENUE TRENDS I THINK THIS ONE'S HOPEFUL YOU CAN SEE 2020 OF THESE ARE JUST A SAMPLING OF REVENUES THAT WE GENERALLY LOOK AT TO KIND OF TEST THE PULSE OF HOW IS OUR TOWN DOING ECONOMICALLY YOU CAN SEE 2020 THE FIRST YEAR COVID WE WENT DOWN SLIGHTLY THEN IN 2021 BOUNCED BACK VERY QUICKLY IN 2022 THAT INCREASE IN ECONOMIC ACTIVITY CONTINUED AND SO THOSE ARE GOOD MEASURES. WHAT ARE THE HORIZONTAL COLOR DIFFERENCES REPRESENT JUST DIFFERENT COMPONENTS. IF YOU LOOKED AT THE REVENUE SCHEDULE FROM EARLIER IN THE PRESENTATION EACH ONE OF THOSE IS ONE OF THOSE REVENUE ITEMS AND SO I DIDN'T PUT A LEGEND IN THERE BUT THEY'RE THE SAME IT AND SO WHERE ARE WE RIGHT NOW OF THOSE REVENUES 63 NINE COMPARED TO 100 AND SO WE'RE NINE MONTHS IN 63 OUT OF 100 COMPARED TO LAST YEAR KNOWING THAT LAST YEAR WAS A REALLY GOOD YEAR YEAR JUST A PIE CHART OF OUR BUDGET CAN SEE THE DIFFERENT COMPONENTS. SO WHAT DOES ALL THIS MEAN WE'RE CONTINUING TO HOLD ON TO THE 2022 GOOD LEVELS OF REVENUE.

WE'RE WITHIN BUDGET ON OUR OPERATIONS. OUR CAPITAL IMPROVEMENT PLAN IS MOVING, WE'RE REDUCING OUR DEBT AND WE YOU KNOW, WE TEMPORARILY IF YOU LOOKED AT OUR ANNUAL REPORT YOU'LL SEE THAT THERE'LL BE INCREASES IN A NUMBER OF DIFFERENT AREAS AND THAT IT'S PRIMARILY RELATED TO SEA IP GETTING STARTED AND FUNDED BUT NOT SPENT YET AND SO THAT'S A TEMPORARY INCREASE IN FUND BALANCE AND THEN THAT INCREASE IN FUND BALANCE LAST YEAR WAS A A NET PERMANENT INCREASE. OUR KEY ISSUES WE WANT TO KEEP OUR FINANCE COMMITTEE INFORMED ,WANT TO KEEP OUR COUNSEL INFORMED. WE WANT IF THERE'S ANY RESPONSES NEEDED. THAT'S A NORMAL QUESTION FROM THE FINANCE IS THERE ANY RESPONSE THAT WE NEED TO MAKE? AND SO RIGHT NOW THERE'S NO NEEDED TO MAKE REVENUES HAVE

[01:30:01]

SO YES WE CERTAINLY SUPPORT ALL OF YOUR INPUT AND WE ARE CRAFTING A BUDGET THAT HOPEFULLY YOU'LL BE ABLE TO SUPPORT. SO WITH THAT I WILL HOLD MY COMMENTS WE'VE GOT WHAT'S ON THE AGENDA IS FINANCE WHAT DATE AND WE'VE ALSO GOT TWO OTHER REPORTS ONE ON SHORT TERM RENTALS AND BUSINESS LICENSE BUT AT LEAST FOR MOMENT THIS IS THIS ONE ASSUMPTIONS FOR NEXT YEAR REGARDING REAL ESTATE INVESTMENT THAT FROM THE REAL ESTATE TRANSFER FEE OR ESTATE INVESTMENT REAL ESTATE TRANSFER FEE MY EXPECTATION IF YOU WERE TO FROM THE REAL ESTATE TRANSFER FEE OR ESTATE INVESTMENT THE REAL ESTATE TRANSFER FEE MY EXPECTATION IF YOU WERE TO IGNORE THE LAST TWO YEARS AND OUR FRIENDS NOT HERE BUT IGNORE THE LAST TWO YEARS THIS A GOOD YEAR FOR REAL ESTATE TRANSFER FEE AND SO I I'M POSITIVE AND HOPEFUL THAT TRENDS WILL CONTINUE AND SO $3 MILLION COLLECTION WOULD HAVE BEEN A GOOD YEAR NORMALLY AND WE'VE COLLECTED $3 MILLION IN NINE MONTHS THIS YEAR SO NO DRAMATIC CHANGE OR DOWN AND YOUR ASSUMPTION FOR NEXT YEAR? THAT'S MY EXPECTATION IF LOOK AT INTEREST RATES EVERYBODY KNOWS THAT THEY'VE GONE UP BUT IF YOU LOOK AT THE LAST 30 DAYS THEY'VE ACTUALLY KIND OF TERM COME A LITTLE BIT ESPECIALLY LONGER TERM, RIGHT. SO I HAVE A VERY OPTIMISTIC VISION OF THE TOWN'S FUTURE AND ALSO EXPECTED ACTIONS ON A TAX AND HOSPITALITY TAX.

YEAH WE'RE AND WE GET A LITTLE BIT OF A MIXED BAG ON THOSE BUT IT SEEMS TO BE DOING AND I THINK WHEN 2021 HIT THERE WAS A FEAR THAT THAT WAS JUST KIND OF PENT UP DEMAND AND SAVED FROM 2020 AND THAT'LL COME BACK DOWN AND HASN'T AND SO THAT'S A GOOD THING TO REPORT OKAY YOUR SLIDE THAT SHOWED AN EVER INCREASING COMMITMENT TO OPERATIONAL EXPENSES AND CAPITAL I LIKE THAT TREND BUT I NOTICED THAT IF YOU WERE TO LOOK BACK THREE YEARS BEFORE COVID HIT THAT THAT WE HAVE SUBSTANTIALLY INCREASED THAT AND I THINK THAT IS PERHAPS MORE OF A REFLECTION OF COUNCIL AND TOWN MANAGERS STAFF'S COMMITMENT TO INVEST IN THIS.

YES. IN IN A ACCELERATED OR CHANGED FROM PREVIOUS TIMES I THINK THAT'S GOOD I THINK IT'S IMPORTANT AND I THINK IT'S A COMMITMENT TO OUR INVESTING TO BECOME KNOWN AS AN EXCELLENT COMMUNITY AT A NUMBER OF DIFFERENT LEVELS SO I THINK THAT SLIDE'S IMPORTANT BUT IT HAS TO BE UNDERSTOOD BY THE COMMUNITY WHAT IT ACTUALLY MEANS FOR THE COMMUNITY ABSOLUTELY AND A YEAR AGO WE WERE STRUGGLING WITH HAVING FULL EMPLOYMENT FOR OUR YOU KNOW, FULLY STAFFED OUR OUR FIRE RESCUE DEPARTMENT AND BETWEEN THE TOWN MANAGER THE FIRE CHIEF AND SOME COUNCIL WE WERE WORKING THROUGH, WHAT CAN WE DO TO HELP THAT? AND YOU'RE STARTING TO SEE WE CHANGED A LITTLE BIT OF POLICY WE, CHANGED THE SALARY SCALES AND MADE SOME VERY PURPOSEFUL INCREASE IN INVESTMENT TO HAVE A FULLY STAFFED THE HIGHEST PROFESSIONAL WE COULD OF FIREFIGHTERS AND OKAY OUR SPENDING IS UP BECAUSE WE'RE DOING WHAT WE ARE TRYING TO DO IT'S AN IMPORTANT STORY FOR THE

[01:35:07]

OKAY. I KNOW STAFFING IS A CHALLENGE AND THE COMMENT I'M GOING TO MAKE IS OF THIS NEW PROCESS THAT WE HAVE PROVIDED WHERE THE FINANCE TEAM ALONG WITH INDIVIDUAL COUNCILMEMBERS ARE GETTING BRIEFED ON THE BUILDING OF THE BUDGET.

AT THE SAME TIME WE HAVE CURRENT BUSINESS ON OKAY SO THERE'S A LOT OF CAPACITY THAT'S BEING FILLED WITH THOSE TWO EXPECTATIONS. SO AS WE GO INTO BUDGET SEASON AND SUPPORTING MR. ORLANDO WITH YOU KNOW STAFFING REQUESTS I THINK IS VERY IMPORTANT.

WE ARE STARTING TO SEE SOME GAP HERE IN MAMMOTH. RIGHT.

SO I WANTED TO SAY THAT OUT LOUD ALSO MR. TROY, YOU I KNOW HAVE ASKED FOR A LITTLE BIT DEEPER DOVE ON WHEN I LEGAL FEES YOU KNOW NOT TODAY BUT IN A FUTURE MEETING.

WE CAN UNPEEL THAT JUST A LITTLE BIT MORE. I THINK THAT WILL BE IMPORTANT TO TO DO AND THE THE ATX INCREASE IF WE COULD CONSIDER LOOKING AT THAT A LITTLE BIT MORE ON A MICRO LEVEL. OKAY I'M NOT SURE THAT YOU CAN ANSWER THAT FOR ME TODAY BUT I WE UP BECAUSE OF QUALITY OR QUANTITY IS WAY I'M GOING BECAUSE WE COULD GUESS THAT WHAT PEOPLE COMING IN WHICH MEANS THAT WE'LL HAVE MORE REVENUES ATTACHED OR IT MAY COST MORE FOR PEOPLE TO COME WHICH WOULD ALSO DRIVE AN INCREASE.

OKAY SO I'M INTERESTED TO SEE WHERE WE LAND ON THAT SO THAT WE CAN PLAN ACCORDINGLY AS WE MOVE INTO THE FUTURE. YEAH I THINK YOU'LL THERE'LL BE ELEMENTS BOTH AND WE'RE HAPPY TO REPORT THAT YES WE'LL DIG DEEPER INTO THAT SCHOOL SHARE MORE BUT I KNOW IT'S TOO EARLY TO ASK BUT I WANT YOU TO HAVE IT ON YOUR MIND AS WE MOVE INTO THE NEXT REPORT THE MINUTES AS TO WHERE WE'RE GOING TO LAND WITH EXPECTATIONS VERSUS OUR ACTUAL SPEND THAT WON'T BE ANY CARRY OVER OR IN THE OTHER DIRECTION. BUT I KNOW TOO EARLY TO ASK OF THAT QUESTION AT THE MOMENT NINE MONTHS IN I AGREE WITH I'M OPTIMISTIC.

YEAH MAYBE EVEN CHAIRMAN BROWN THE EIGHT TAX MATTERS ARE STARTING TO RECONSIDER RIGHT NOW SO GETTING A GOOD UNDERSTANDING WHERE THAT'S GOING WOULD BE VERY HELPFUL.

OKAY. THANK YOU. ALL RIGHT.

ALL RIGHT. SO WE HAVE SHORT TERM RENTAL AND BUSINESS LICENSES GOING TO BE PRESENTED AS WELL. GO. GOOD MORNING.

GOOD MORNING EVERYONE. IT'S REALLY NICE TO BE HERE. JOHN IS ASKED THAT I GIVE YOU AN UPDATE. I'M APRIL AIKENS. I'M THE REVENUE SERVICES MANAGER HERE AT THE TOWN AND I BEEN ON THE SHORT TERM RENTAL PROGRAM PROJECT LAUNCH FOR QUITE A WHILE NOW. IT'S BEEN OVER A YEAR SO I THOUGHT I WOULD JUST JUMP IN HERE AND GIVE YOU SOME INFORMATION ON WHAT WE'VE BEEN DOING A FEW KEY DATES ON OUR PROJECT AS YOU KNOW BACK ON MAY 19TH OF LAST YEAR TOWN COUNCIL APPROVED THE SHORT TERM RENTAL ORDINANCE IN AUGUST THE TOWN HIRED BARBARA WOOSTER OUR REVENUE CUSTOMER SERVICE MANAGER TO HELP SPEARHEAD THIS LARGE PROJECT AND ALSO OUR PUBLIC SAFETY DIRECTOR BOB BROMAGE. ALSO IN AUGUST WE EXECUTED A CONTRACT WITH THE STR MONITORING SOFTWARE VENDOR GOV OST AND OUR PROJECT KICKOFF WAS SEPTEMBER 1ST WITH A VERY TIGHT DEADLINE WITH GOV OES I LIKE TO POINT OUT THAT WAS 80 WORKING DAYS, SIX HOLIDAYS AND HURRICANE IN. WE THEN LAUNCHED A VERY SCHEDULE THROUGH OCTOBER AND NOVEMBER WE WORKED WITH GOV OS TO TEST AND DEVELOP OUR SDR SOLUTION SOFTWARE WE CREATED WORKFLOWS AND PROCEDURES FOR SEVERAL DEPARTMENTS ACROSS THE ORGANIZATION THAT WERE IMPACTED BY THE IMPLEMENTATION OF THE AUDITS.

[01:40:02]

THEY HAVE DONE AN OUTSTANDING JOB WORKING WITH OUR PROPERTY OWNERS TO ASSIST THEM THROUGH THIS PROCESS. ALSO IN DECEMBER IT FOR AN END OF DECEMBER GOV OSE MAILED OUT 4843 REGISTRATION LETTERS TO POTENTIAL SDR OPERATORS AND WE COMPLETED OUR TRAINING ON THE GOV O.S. SOFTWARE I'M HAPPY TO REPORT WE WENT LIVE ON JANUARY 3RD AND OPENED UP OUR SDR PERMITTING PORTAL TO OUR PROPERTY OWNERS OUT OF RENTING AND AT THE END OF FEBRUARY WE GAVE ADDRESS MAILED OUT AN ADDITIONAL 2700 REGISTRATION LETTERS TO POTENTIAL SDR OPERATORS SO THOSE LETTERS WOULD HAVE INCLUDED ANYONE WHO DIDN'T RESPOND TO THE FIRST MAILING. PERHAPS WE HAD A BAD MAILING ADDRESS.

WE HAD TO DO SOME RESEARCH TO MAKE SURE WE HAD THE CORRECT ADDRESSES.

IT ALSO WOULD HAVE BEEN NEW NEWLY IDENTIFIED SHORT TERM RENTALS SO SHORT TERM RENTALS BY THE NUMBERS AS OF MARCH 31ST OF THIS YEAR WE CURRENTLY HAVE OVER 30,000 TOTAL ADVERTISING ASSETS FOR SHORT TERM RENTALS ON OUR ISLAND. GOV OS IS VERY BUSY THEIR TEAM IS VERY BUSY WORKING TO IDENTIFY THOSE SHORT TERM RENTALS AS YOU KNOW WHEN YOU GO OUT INTO THE MARKET RENT THE ADDRESS IS NOT THERE SO THERE'S A LOT OF WORK BEHIND THE SCENES TO MAKE SURE THAT THEY'RE IDENTIFYING THE CORRECT PARCEL INFORMATION.

44% OF THE ADVERTISEMENTS ARE VERBAL 5930 STARS HAVE BEEN IDENTIFIED SO FAR BY GARBO AS HIS TEAM THROUGH THE ADVERTISEMENTS. SO YOU JUST HAVE TO KEEP IN MIND THAT ONE SHORT TERM RENTAL PROPERTY MAY USE MULTIPLE PLATFORMS FOR RENTING SO MAYBE AIRBNB, VRBO, FLIP KEY, OTHER THINGS LIKE THAT. SO THAT WOULD EXPLAIN THE VERY LARGE ADVERTISEMENT WITH A SMALLER ID ON PROPERTIES WE HAVE ALREADY 5410 STR PER RENT APPLICATIONS THE PAST THREE MONTHS IT'S BEEN A WHIRLWIND AND I WILL TELL YOU WITH THAT PROCESS WHEN GARBO HAS MAILED OUT THE LETTERS WE'VE ALSO BEEN ABLE TO CAPTURE NEW BUSINESS LICENSES ARE REQUIRED FOR PEOPLE WHO ARE RENTING THEIR PROPERTY.

THEY MAY NOT HAVE REALIZED THAT THEY NEEDED ONE AND SO WE ARE BRINGING THEM INTO COMPLIANCE AS WELL. SO FROM JANUARY UNTIL THE END OF MARCH REVENUE SERVICES HAS BEEN HIGHLY IMPACTED BY THIS ORDINANCE AND WE HAVE PROCESSED 874 NEW BUSINESS LICENSES FOR SHORT TERM RENTALS. AND TO GIVE YOU A PERSPECTIVE TYPICALLY IN A ONE YEAR PERIOD REVENUE SERVICES PROCESS IS ABOUT 1000 APPLICATIONS. SO IT HAS BEEN ALL HANDS ON DECK. WE HAVE BEEN WORKING OVERTIME IN WEEKENDS TO TRY TO GET THROUGH THIS VOLUME OF WORK. OUR AVERAGE DAILY RENTAL RATE IS $423.42 THAT HAS NOT FLUCTUATED VERY MUCH SINCE CAME ONLINE IN JANUARY. SO IT JUST TELLS ME THAT OUR COMMUNITY AND OUR ISLANDS IS IN HIGH DEMAND IS VERY POPULAR DESTINATION 72% OF THE STR PERMIT INVENTORY ARE CONDOS AND VILLAS WITH THE MAJORITY OF THOSE BEING TWO BEDROOMS. WE HAVE RECEIVED 30 COMPLAINTS SO FAR SINCE JANUARY ONE AND THAT IS OUR 24 HOUR 724 SEVEN HOUR HOTLINE AND ALSO WITH ONLINE SUBMISSION OF A COMPLAINT FORM 47 OF THOSE 47% OF THOSE COMPLAINTS WERE RELATED TO PARKING AND I JUST MADE A NOTE THAT NUMBERS DO NOT INCLUDE OUR TIMESHARES WHICH THERE ARE 3000 OF THOSE ON THE ISLAND AS YOU WANTED TO SHARE FEW OF OUR PROJECT HIGHLIGHTS THAT WE'RE CURRENTLY WORKING ON .

AS YOU ARE PROBABLY AWARE BY NOW THIS HAS BEEN A BIG EFFORT A BIG COMPREHENSIVE MULTI DEPARTMENT EFFORT ACROSS OUR ORGANIZATION IT REALLY HAS IMPACTED JUST ABOUT EVERY DEPARTMENT. WE'VE BEEN WORKING THROUGH COMMUNITY DEVELOPMENT REVENUE SERVICES, OUR FIRE DEPARTMENT, OUR GUYS TEAM AND OUR TEAM, OUR COMMUNICATIONS TEAMS. I'M NO I'M LEAVING PEOPLE OUT. PUBLIC SAFETY HAS A HUGE UNDERTAKING BUT JUST KNOW THAT WE ARE ALL TOGETHER TO MAKE THIS ORDINANCE THE BEST THAT IT CAN BE AND TO MAKE SURE OUR

[01:45:06]

SO THAT WE CAN HAVE A BETTER UNDERSTANDING OF THE COMPLAINTS THAT ARE HAPPENING IN ADDITION TO THE ONES THAT WE OF COURSE GETTING ANOTHER BIG PROJECT THAT WE'VE WORKING ON IS SCRUBBING OUR DATABASE AND ANALYZING IT MAKING SURE THAT WE ARE DEVELOPING AND HAVING THE CORRECT ACCURATE REPORTING THAT WE NEED TO MAKE DECISIONS JUST AS AN EXAMPLE THE DATA THAT WE IMPORTED INTO THE GOVERNMENT SYSTEM IS PARCEL DATA FROM COUNTY.

SO THERE'S A LOT OF INFORMATION THAT WE NEED TO MAKE SURE IS CORRECT AND EXAMPLE OR THE MAILING ADDRESSES SOME SOME THINGS JUST NOT PERFECT IN THIS DATA SO WE'RE THROUGH THAT AND IT HAS BEEN A VERY LARGE PART OF THE PROJECT AS AN EXAMPLE WE WENT INTO EVERY PARCEL AND DECIDED WHERE THE NEIGHBORHOOD AND IDENTIFIED THAT AND MADE SURE THAT WE ARE ABLE TO PULL INFORMATION NOT JUST BY THE BIG PICTURE BUT ALSO DOWN YOU KNOW DRILL IT DOWN INTO THE NEIGHBORHOOD. SO THAT WAS A BIG THAT WE JUST RECENTLY FINISHED AS WELL WE WE WE WE MEET WEEKLY WITH OUR TEAM AND ALSO WE GAVE OS WE TALK ABOUT PROCESS IMPROVEMENTS AND WE IDENTIFY ISSUES WE'RE GETTING FEEDBACK FROM THE PUBLIC, WE GET FEEDBACK FROM STAFF AND WE WORK TO MAKE SURE WE ARE ADDRESSING THOSE AND IMPROVING THIS IS A YOU KNOW AS YOU CAN SEE YOU KNOW IT'S BEEN 12 WEEKS AND WE'VE A LOT OF PROGRESS BUT IT STILL IS IN THE VERY BEGINNING STAGES OF DEVELOPMENT AND KNOW IT'S NOT PERFECT.

WE KNOW WE HAVE A LOT OF ROOM TO GROW. WE'RE A LOT EVERY SINGLE DAY SO THAT'S AN IMPORTANT PIECE OF OS IS OUR PARTNER IN THIS AND THEY HAVE OF SET GOALS POST LIFE AS WELL AS OUR GOALS AND WE'RE ALL IN LINE THEY ACTUALLY STATED I RECENTLY THEY PROBABLY SHARED THAT TYPICALLY IT TAKES IT'S USUALLY WHAT 12 MONTHS AFTER GOING LIVE BEFORE YOU REALLY HAVE THE DATA THAT YOU NEED TO BE ABLE TO MAKE SOUND DECISIONS WE NEED TO GET THROUGH THE PROCESS SO WE UNDERSTAND IT BUT THEY REALLY FEEL THAT 90% COMPLIANCE WITHIN THE FIRST 12 MONTHS IS A GREAT GOAL TO HAVE AND AS YOU SAW FROM THE NUMBERS WE'VE ALREADY EXCEEDED THAT.

SO I'M I'M VERY PLEASED WITH THAT. WELL SEE HERE WE ARE CREATING A PUBLIC SDR DASHBOARD THROUGH OUR GIS TEAM SO YOU WILL ANYBODY WILL BE ABLE TO GO ON TO OUR WEBSITE AND OUR LOOK AT WHERE OUR SDR PERMITS ARE AND, GET INFORMATION THAT WILL BE AVAILABLE THERE FOR THE PUBLIC SO WE HOPE TO HAVE THAT AVAILABLE IN MAY.

WE ARE WORKING ON THE FINAL OF THAT ARE HUGE THING RIGHT NOW IS CONTINUING COMPLIANCE EFFORTS AS I MENTIONED WE HAVE SO MANY BUSINESS LICENSE APPLICATIONS WE ARE STILL SEEING A VERY LARGE VOLUME OF OUR SDR PERMIT APPLICATIONS COMING IN.

THOSE ARE STEADILY COMING IN EVERY WEEK AS WELL AS OUR BUSINESS LICENSE APPLICATIONS.

SO WE JUST WANT TO MAKE SURE WE'RE IDENTIFYING THE PROPERTIES THROUGH OUR GOV OS PARTNER AND SURE THAT THEY ARE COMPLIANT WITH PERMITTING BUSINESS LICENSES ALSO COLLECTING AND REMITTING THEIR COMBINATION TAXES AND BEACH PRESERVATION FEES.

WE DO GIVE REGULAR UPDATES ON THE SDR ORDINANCE INTERNALLY I DO SEND AN EMAIL EVERY FRIDAY AFTERNOON TO SENIOR STAFF AND OF COURSE WE'RE HERE TO GIVE TO YOU AND THE COMMITTEES AND AND ANYWHERE ELSE THAT YOU WOULD WHERE WE'RE JUST HERE TO GIVE YOU THE INFORMATION THAT YOU NEED. SO WITH THAT I COULD GO ON AND ON.

I'VE BEEN LIVING AND BREATHING THIS FOR QUITE A WHILE. I CAN SHARE YOU SOME STORY THEY RECENTLY BARBARA WENT TO THE 911 DISPATCH CALL CENTER LAST AND SPENT A COUPLE OF DAYS THERE WITH OUR NINE ONE COMMUNICATIONS TEAM TRAINING THEM ON GOV OS BECAUSE WHEN THEY GET A CALL FROM A SHORT TERM FOR AN ALARM THAT IS GOING OFF IT'S BEEN VERY DIFFICULT FOR THEM TO FIND OUT HOW GET THAT TURNED OFF. SO THAT IS A BIG I THINK A

[01:50:01]

SO OUR FIRE DEPARTMENT WAS ABLE TO WORK WITH THE PROPERTY MANAGER TO FIND A SOLUTION FOR THAT AND MAKE SURE THAT HOME IS SAFE FOR FOR THE GUESTS THERE. SO I THOSE ARE SOME GREAT SUCCESS STORIES FIRE RESCUE HAS ASKED TO MAKE SURE THAT THEY ARE INCLUDED AND DISCUSSIONS GOING FORWARD BECAUSE THEY CAN SEE THE IMPACT IN THEIR DEPARTMENT AS WELL AS ACROSS THE ORGANIZATION. SO WITH THAT I KNOW I'VE BEEN GOING AND ON I CAN OPEN UP THE FLOOR FOR QUESTIONS. OKAY. JUST AFTER VERY GOOD REPORT A LOT OF INFORMATION THERE. WHAT ARE THE BIGGEST CHALLENGES THAT YOU'VE FACED OVER THE LAST YEAR THAT ARE STILL PRESENT BE SOLVED? WELL, THERE ARE TWO VERY LARGE RIGHT NOW AS TO GETTING THE TWO SIDES TO TO COME TO AN UNDERSTANDING THAT'S I WOULD SAY WAS PROBABLY THE BIGGEST CHALLENGE THEY STEPPED IN GREAT JOB SWALLOWING AN ENORMOUS CHALLENGE HERE. YES. AND WE REALLY APPRECIATE ALL OF YOUR HARD WORK AND FRANKLY GREAT SUCCESS TO DATE THIS THIS IS THIS IS OUTSTANDING.

THANK YOU. OUR TEAM IS FANTASTIC. I THINK I'VE GOT NUMBERS CORRECT. ABOUT 5400 PERMIT APPLICATIONS RECEIVED AND I HOPE THAT YOU HAVE 30 COMPLAINTS. FIRST OF ALL, THAT SEEMS LIKE VERY FEW COMPLAINTS BUT WE REALLY HAVEN'T GOTTEN INTO THE SEASON EITHER AND SO I THINK THAT THAT NUMBER WILL DEFINITELY CHANGE. THESE COMPLAINTS ARE COMING FROM NEIGHBORS ABOUT PEOPLE ABUSING THE PARKING OR ARE THEY COMING FROM SHORT TERM RENT ALONE OR SAYING WE CAN'T PARK WITHIN THE TERMS OF THE ORDINANCE BOTH THE NUISANCE HOTLINE HAS BEEN USED FOR COMPLAINTS THAT REALLY DON'T THAT AREN'T BEING REGULATED THROUGH OUR SO WE DO LISTEN IT'S IT'S REALLY A WAY FOR SOMEONE PROVIDE FEEDBACK BUT I WOULD SAY THE MAJORITY OF THEM ARE PROBABLY NEIGHBOR OR ANOTHER GUEST IN A HOUSE THAT'S YOU KNOW, TO LISTEN TO THE NOISE OR OR WHATEVER IS HAPPENING NOISE IS THE SECOND LARGEST COMPLAINT THAT WE'RE RECEIVING RIGHT NOW. OKAY THAT'S THAT'S UNDERSTANDABLE.

THE ORDINANCE THERE WAS A LOT OF WORK THAT WENT INTO THE ORDINANCE, A LOT OF NEGOTIATION WENT INTO THE ORDINANCE BUT YOU'RE HAVING TO IMPLEMENT THE ORDINANCE.

SO THE QUESTION IS IF YOU HAVE CHANGES THAT YOU SUGGEST WOULD IMPROVE THE EFFICIENCY OF THE ORDINANCE MAKE IT EASIER FOR YOU TO DO YOUR JOB, WORK THROUGH TOWN STAFF AND GET THAT INFORMATION TO US BECAUSE WE ADOPTED AN ORDINANCE DOESN'T MEAN WE'RE NOT GOING TO CHANGE THAT HAPPENS ALL THE TIME SO GREAT JOB AND THANK YOU FOR YOUR HARD WORK.

THANK YOU STAINES APRIL I REALLY APPRECIATE YOUR ENTHUSIASM AND PATIENCE AND ALSO MY BABY YOU'RE DOING A GREAT HYPOTHESIS THAT THE CHALLENGES THAT WE'RE FACING TODAY IN THE PERCENT PORTION OF THE PUBLIC HAS LESS TO DO WITH THE BROAD CATEGORY

[01:55:09]

YEAH, YEAH YEAH. AND ALSO FOR HUNDRED AND $23 AVERAGE DAILY RATE IF YOU WERE TO SPLIT THAT UP CONDOS VERSUS SINGLE FAMILY HOMES I THINK THAT WOULD ALSO BE AN INTERESTING SUBDIVISION. BUT WHAT I'M REALLY INTERESTED IN LEARNING IS THAT WHERE CONDOS ARE LOCATED ON THE GRASS MAP AS OPPOSED TO THE SCATTERED INFORMATION IS AVAILABLE ON JUST SHOWING ALL SHORT TERM RENTALS. THERE ARE SOME CONDO PROJECTS ON THE ISLAND THAT THAT WERE NOT DESIGNED TO BE RESOURCE ORIENTED THAT NOW HAVE STARS I THINK THAT'S ANOTHER LEVEL OF DIFFICULTY SO I'M WE'RE WHERE WE MIGHT BE HEADED AS A COUNCIL IS UNDERSTANDING WHAT MORE STRATEGIC MEASURES WE HAVE TO TAKE TO CONTROL WHAT IS GOING ON SO I THINK THE DIFFERENTIATION BETWEEN SINGLE FAMILY AND CONDO IS A VERY IMPORTANT ONE FOR COUNCIL TO UNDERSTAND AND LOOK INTO. THANK YOU.

THANK YOU, MR. JAMES. I WANT TO GO A LITTLE BIT FURTHER ON MY COLLEAGUE'S COMMENTS. I AGREE WITH EVERYTHING THAT HAS BEEN SAID AS FAR AS FAR AS IT'S THESE OPPORTUNITIES HAVE HAD AN EFFECT ON THE HOTEL BUSINESS.

I'D LIKE TO BE A LITTLE BIT MORE CLEAR AS TO WHAT THAT LOOKS LIKE AS WE AS WE TALK ABOUT THE BIG COMPLAINTS I'M INTERESTED IN THE OF OCEAN THAT COMES ALONG WITH THE COMPLAINTS TO MR. STANFILL POINT THEM MAY MAYBE ITEMS THAT WE NEED TO ADJUST POLICY BUT NOW THAT WE'VE MADE THE INVESTMENT AND HAVE A SORT OF A ONE STOP SHOP FOR COMPLAINTS AND I KNOW ARE PROBABLY SOME STUFF BEING MISSED BECAUSE THEY DON'T CALL US THEY CALL NOW ON ONE INSTEAD SO WE'RE GOING TO KIND OF BRIDGE THAT GAP BUT I'M REALLY CURIOUS AS TO WHO YOU KNOW, WHAT THE THE PERCENTAGE LOOKS LIKE AS WE GO IN TO SEASON AND AS FAR AS THE RESOLUTIONS ARE CONCERNED. OKAY. I'M NOT IT WAS A BAG STATION. IT WAS LOCATED ON THE ISLAND.

THANKS OKAY. WELL DONE. THANK YOU.

THANK YOU VERY MUCH. THAT'S WHY SHE WAS EMPLOYEE OF THE YEAR LAST YEAR BECAUSE OKAY. WELL DONE. THANK YOU.

THANK THAT'S WHY SHE WAS EMPLOYEE OF THE YEAR LAST YEAR BECAUSE THANK YOU.

[02:00:08]

THE RATE STUDY IT WAS DONE TO OFFSET CLASS AND SO WHERE WE'RE CATEGORIZING BUSINESSES AND PEOPLE'S DIFFERENT CATEGORIES AND SO WE NEEDED TO DO A RATES TALLY TO DO A NET NEUTRAL UPDATE FOR OUR BUSINESS LICENSE FEES HOW DID THIS TURN OUT ARE BUSINESS LICENSES WENT SIGNIFICANT SIMPLY THE QUESTION THEN BUT I THOUGHT IT WAS SUPPOSED TO BE REVENUE NEUTRAL WELL ONE OF THE THINGS THAT HAPPENED IS THAT THE GROSS INCOME WHICH YOUR BUSINESS LICENSES WERE BASED ON WENT UP SIGNIFICANTLY SO COLLECTIVELY ISLAND WIDE WE WENT FROM $3.4 BILLION TO $4.4 BILLION AND SO OUR RATES WERE THE SAME. THEY'RE NEUTRAL AT THE $3.4 BILLION LEVEL NOT ANTICIPATING THAT WE THE BUSINESSES WILL REPORT AN EXTRA DOLLARS IN GROSS REVENUE AND SO THAT'S GOOD NEWS FOR ECONOMIC ACTIVITY.

YOU PUT THESE TWO GRAPHS TOGETHER AND THEY LOOK VERY, VERY SIMILAR.

THERE'S A PROPORTIONALLY YOU HAVE A GROSS INCOME INCREASE, YOU HAVE A TAX REVENUE INCREASE AND SO THOSE TWO ITEMS DO GO TOGETHER. ANOTHER THAT WE SAW IS THAT AS SOME PEOPLE ARE USING WHAT WAS A SINGLE FAMILY HOME IS NOW A SHORT TERM RENTAL.

THE PEOPLE WHO NEED A BUSINESS LICENSE HAS GONE UP AND YOU CAN SEE OUR NUMBERS ARE UP SIGNIFICANTLY. PEOPLE WHO ARE NOT IN THE BUSINESS WHO ARE IN THE BUSINESS SO OUR TOTAL NUMBER OF ACCOUNTS IS UP AND SO THAT HAS A PRETTY GOOD FIT ALSO WITH OUR NUMBER OF ACCOUNTS WITH OUR TOTAL BUSINESS LICENSE COLLECTIONS AND SO THOSE TWO GO TOGETHER AS WELL I THOUGHT IT WAS INTERESTING I JUST DID THIS MATH HERE YESTERDAY AVERAGE BUSINESS LICENSE AND SO AS WE HAVE LOT MORE OF THESE SHORT TERM RENTALS TO GET A BUSINESS LICENSE NOW THE AVERAGE BUSINESS LICENSE IS DROPPING WITH THAT INCREASE IN ACTIVITY . DO YOU POST THERE? WE MAKE SURE I GOT THAT DONE.

SO ARE YOU SAYING THAT THE AVERAGE BUSINESS LICENSE COLLECTION AMOUNT GOING DOWN BECAUSE WE HAD ENOUGH SHAPE FOR A REPORT BUT THERE WAS A CHANGE IN MIX IN OUR GROSS INCOME REPORTED AND SO THAT WAS KIND OF AN INTERESTING DYNAMIC AND WE'LL HAVE MORE IN A FUTURE REPORT.

THANK YOU BEFORE BUT I WANT TO MAKE SURE I CATCH TO THIS THING IT WAS JUST AS YOU BRING FORTH THE NEXT REPORT ALSO BE INTERESTED TO KNOW WITHOUT THE STORES BEING INCLUDED WHERE WE LAND LICENSE OKAY SO YES YEAH OKAY IT'S DEFINITELY SAFER NOTHING FURTHER.

OKAY LET'S SPEND SOME TIME ON BUSINESS LICENSE AT AN X REPORT AND THIS IS GOING TO HELP US AS WELL. YEAH WE'RE HAPPY ABOUT THE REPORT BUSINESS LICENSE RENEWALS ARE DUE AT THE END OF APRIL AND SO I THINK WE'LL HAVE MORE COMPLETE INFORMATION A LITTLE BIT LATER WILL BE THAT ONE PERFECT. GOOD DEAL.

THANK YOU. OKAY. WE DON'T HAVE ANYTHING ELSE IN

[02:05:02]

ALL RIGHT. ARE WE READY FOR ADJOURNMENT SECOND? THANK YOU ALL IN FAVOR I. ALL RIGHT, WE ARE TIME

* This transcript was compiled from uncorrected Closed Captioning.