Aug 15, 2023 Town of Hilton Head Finance &amp; Administrative Committee

SKIP HOAGLAND WINDMILL HARBOR.

GREELEY LYNN GREELEY.

SHE'S GONNA GO AFTER ME.

DAVID LAUDERDALE'S.

EXCELLENT COLUMN, SLOPPY GOVERNMENT.

AND PACKET ABOUT THE LATEST BEAUFORT COUNTY GREENWAY.

SCANDAL SHOULD STRIKE FEAR IN THE HEART OF EVERY CORRUPT, INCOMPETENT COUNTY EMPLOYEE, MAYORS, ATTORNEYS, AND ELECTED OFFICIALS.

WE ALL KNOW THE CORRUPTION IS WHAT IT IS INSIDE OUR DEALINGS.

BRIBERY, QUID PRO QUO NEPOTISM, PAY TO PLAY KICKBACKS AND MORE.

NOW IS THE TIME DURING THIS WHOLLY SELF-INFLICTED COUNTY DISGRACE TO SPEAK UP ON THIS ISSUE.

IT HAS SEVERELY DAMAGED OUR COMMUNITY AND CAUSE EMBARRASSMENT TO HONEST COUNCIL MEMBERS AND EMPLOYEES ALIKE.

WE MUST UNDERSTAND DISHONEST ACTS BY COUNTY OFFICIALS FURTHER DEGRADES THE SYSTEM.

IT'S A CURSE TO SOCIETY AND TOTALLY AGAINST DEMOCRACY.

CORRUPTION CONTINUES TO FLOURISH HERE.

WEAK LAW ENFORCEMENT AND LACK OF ACCOUNTABILITY HAVE CREATED AN ENVIRONMENT WHERE THIS BEHAVIOR HAS GONE UNPUNISHED.

AND SYSTEMATIC ISSUES SUCH AS LACK OF TRANSPARENCY, FOIA COMPLIANCE, FRAUDULENT INTERNAL AUDITS, FRAUDULENT BUDGETS THAT ONLY SHOW THE NUMBERS, THE INSIDERS LIKE GREENWAY, ORLANDO, SULCA, GRUBER, ET CETERA, WANT US TO SEE AND HAS FURTHER CREATED OPPORTUNITIES FOR THESE IMMORAL CR PEOPLE TO ABUSE POWER, WE MUST FOCUS ON ROBUST ENFORCED LAWS, REGULATIONS, AND FULL FINANCIAL TRANSPARENCY.

REMEMBER, WE ALL HAVE THE POWER AND IT STARTS WITH OURSELVES.

LET US, LET US NOT SUPPORT CORRUPTION, THE GREATEST EVIL IN OUR SOCIETY.

AND LET'S REMOVE IT FROM THIS TOWN.

PEOPLE ARE SILENT IN SUCH SITUATIONS.

THEY FEAR TO SPEAK.

IT'S NOT ACCEPTABLE.

RAISING OUR VOICES TOWARD EXPOSING WRONGDOING IS THE FIRST STEP IN A COM AND YOUR OBLIGATION AS A CITIZEN.

COMBATING CORRUPTION IS CHALLENGING, BUT MEASURES CAN BE TAKEN.

FIRST, IMPROVING THE COURT SYSTEM AND INSTITUTIONS RESPONSIBLE FOR ENSURING ACCOUNTABILITY.

AND WE CANNOT DO THAT.

AND WE CAN DO THAT BY COUNCIL.

HIRING AN OUTSIDE FORENSIC AUDITOR, PREFERABLY SOMEBODY OUTTA STATE WITH NO TIES TO THE INSIDERS TO CONDUCT A THOROUGH FORENSIC AUDIT OF THE ENTIRE BEAUFORT COUNTY AND ALL THOSE WHO RECEIVE TENS OF MILLIONS WITH ZERO OVERSIGHT FOR THE LAST 40 YEARS SINCE THIS TOWN STARTED.

THIS INCLUDES THE SCHOOL DISTRICT, OUR TREASURER, THE TOWN OF HILTON HEAD AND, AND, AND, AND BLUFFTON AND BEAUFORT, AND THE NONPROFIT HILTON HEAD, BLUFFTON CHAMBER, THE BEAUFORT C V B, THE BLACK CHAMBER BEAR FOREMAN, LAW FIRMS AND BONDS, AND THE MILLIONS OF HOSPITALITY AND AID TAX FUNDS THAT HAVE DISAPPEARED AND UNACCOUNTED FOR.

WE NEED TO GET TO GROUND ZERO SO WE KNOW HOW DEEP THE FINANCIAL VIOLATIONS AND THE SHENANIGANS ARE.

SO AS LAUDERDALE SAID, LET'S FIX THIS SLOPPY GOVERNMENT.

TROY BEFORE US TO DISCUSS MUNICIPAL INSTALLMENT PURCHASE REVENUE BONDS.

SO YOU CAN CONTINUE WITH MS. GREELEY'S.

AND I'M, I, I APOLOGIZE FOR THE SIX MINUTES, BUT IT'S NECESSARY TO GET THIS MESSAGE OUT.

THERE'S A LOT THAT WE'RE HEARING AND READING ABOUT GREENWAY, BUT THERE'S A LOT WE'RE NOT HE HEARING ABOUT.

THE FACT IS HE'S SHADY, HE'S CORRUPT, AND HE IS NOT ALONE.

THE FIRST THING THAT MUST HAPPEN IS THIS COUNCIL MUST ALSO STOP ITS ACTIONS AND ITS VOTES THAT LEAVE AN OPEN DOOR TO GREENWAY, ORLANDO AND THE CHAMBERS AND OTHERS IN THIS COUNTY TO COMMIT EAGLE ILLEGAL ACTS WITH OUR TAX MONEY.

TAX MONEY TAXPAYERS ARE FED UP AND MANY CONVINCED THE COURTS IN THE COUNTY IS ACTING MORE LIKE A CRIMINAL ENTERPRISE THAN A FUNCTIONAL GOVERNMENT.

SLOPPY IS AN UNDERSTATEMENT.

REGARDLESS WHAT YOU BELIEVE THE FACTS ARE DISTURBING.

OUR ENTIRE POLITICAL SYSTEM GIVES THE FULL POWER TO THE COUNTY AND TOWN EMPLOYEES AND CORRUPT MANAGERS LIKE ORLANDO AND GREENWAY AND THE LAWYERS, AND THE CPAS THAT TOTALLY CONTROL ALL THE PART-TIME LEADERS, MAYORS, AND COUNCILS.

THE EMPLOYEES BASICALLY DO AS

[00:05:01]

THEY WISH.

AND THE PART-TIME COUNCILS WHO HAVE OTHER JOBS HAVE NO CLUE OR CONTROL OF WHAT'S GOING ON.

TAXPAYERS ARE LEFT IN THE DARK AND TENS OF MILLIONS OF TAX MONEY IN MANY CASES UNACCOUNTED FOR AND AGAIN, DISAPPEARED INTO THIN AIR.

WE HAVE NO FULL TRANSPARENCY, ACCOUNTABILITY, AND WE'RE HEADED AND, AND WE ARE ALL HANDED INTERNAL PREPARED BUDGETS AND FINANCIAL AUDITS BY, BY ORLANDO AND GREENWAY AND OTHER TOWN MANAGERS THAT ARE FRAUDULENT AND THEY ONLY SHOW THE NUMBERS THEY WANT US TO SEE THE SCHOOL DISTRICT, THE TREASURER, LEGAL FEES, BONDS, IT GOES ON AND ON AND ON.

TODAY, I'M HERE NOT TO ASK, BUT DEMAND ON BEHALF OF ALL TAXPAYERS, THAT ALL COUNCILS IN BEAUFORT, HILTON, HEAD AND BLUFFTON TAKE BACK CONTROL OF OUR FINANCES.

SO EASY TO DO.

AND THE ADDED COST.

THE ADDED COST TO AUDIT IS A PIDDLY AMOUNT TO STOP ALL THE ILLEGAL ISSUE AND USE OF OUR TAX FUNDS IN THE TENS OF MILLIONS THAT ORLANDO HAS TO COME CLEAN AND HE HAS TO SHOW US WHAT HE'S DOING WITH THE MONEY COUNCIL JUST HIRES A GUY LIKE ME OR ANYBODY HONEST AND AN OUT-OF-STATE C P A WITH FORENSIC AUDIT KNOWLEDGE THAT THAT KNOWS HOW TO AUDIT TOWN, GOVERNMENT, SCHOOL DISTRICTS AND TREASURERS AND CHAMBERS OF COMMERCE.

AND THIS LEVEL OF AUDIT WOULD BE MANDATORY AND CONDUCTED EVERY THREE YEARS.

AUDITS WILL END A LARGE PERCENTAGE OF CRIMES IN BEAUFORT COUNTY.

THIS IS THE ONLY TOOL THAT YOU HAVE AVAILABLE, UH, UH, UH, UH, TO YOU IN OUR, IN OUR POLITICAL SYSTEM THAT GIVES THE FULL POWER TO THESE TOWN EMPLOYEES.

WE HAVE NO C E O, WE HAVE NO LEADERSHIP.

SO JUST ABOUT EVERY SINGLE COUNTY EMPLOYEE LEADER, TOWN AND COUNTY COUNCIL, INCLUDING ALL OF Y'ALL, WHICH IS A SHAME, HAVE VOTED FOR THE MISUSE AND ILLEGAL USE OF MILLIONS OF TAX FUNDS.

HOW DO YOU KEEP ON DOING THAT? WHEN ARE YOU GONNA END THAT? THIS IS SLOPPY GOVERNMENT AT ITS WORST FORM AND IT'S GOT TO END.

YOU DON'T, I DON'T NEED TO BE HERE.

I DON'T WANNA BE HERE.

I'D RATHER YOU JUST BE HONEST AND MAKE BILL MILES SHOW WHAT HE'S DONE WITH $11 MILLION A YEAR.

LET'S SEE THE AUDITS.

CLEAN IT UP.

THANK YOU, MR. HOAGLAND.

MELINDA TUNNER.

GOOD MORNING, MELINDA TUNNER 20 LINUX LANE IN PALMETTO HALL AT THE STRATEGIC PLAN WORKSHOP.

THERE WAS A BRIEF UPDATE ABOUT THE WORK OF ASSESSING ALTERNATIVE REVENUE SOURCES AND FUNDING OPPORTUNITIES.

AND I THINK IT MAKES A LOT OF SENSE TO UNDERSTAND ALL OF YOUR OPTIONS.

FOR EXAMPLE, THE NEW BEAUFORT COUNTY GREEN SPACE SALES TAX PROGRAM WILL PROVIDE, I THINK I HEARD SOMEONE SAY $25 MILLION POTENTIALLY TO THE TOWN OF HILTON HEAD.

I'M LOOKING FORWARD TO THE FIRST TOPIC ON TODAY'S AGENDA, THE DISCUSSION REGARDING IP RBS.

AS I LISTENED TO THE JUNE DISCUSSION, AGAIN, THERE ARE A LOT OF PROS TO THE APPROACH, THE IMPROVED RATING VERSUS A REVENUE BOND, ALTHOUGH IT'S LESS THAN A GENERAL OBLIGATION BOND AND THE FLEXIBILITY OF THE REVENUES STREAMS FOR REPAYMENT.

THERE ARE SOME CONS AND ONE MAY BE THE LEVEL OF INTEREST REQUIRED IN TODAY'S ENVIRONMENT.

PERSONALLY, I'M MORE INTERESTED IN UNDERSTANDING WHY WE'RE LOOKING AT ISSUING A NEW BOND.

IS IT TO FUND ALL OUR PART OF OUR CAPITAL IMPROVEMENT PLAN? IS IT TO PURCHASE MORE LAND OVER AND ABOVE THE 25 MILLION WE WILL BE RECEIVING FROM THE BEAUFORT COUNTY GREEN SPACE SALES TAX PROGRAM? I UNDERSTAND THAT BORROWING IS A TOOL IN THE FISCAL TOOLKIT, BUT BORROWING ADDS COST TO THE BOTTOM LINE FOR INTEREST FEES AND PRINCIPLES, AND SOMEONE HAS TO PAY FOR IT.

SO I THINK IT'S IMPORTANT TO MAKE SURE THAT OTHER OPTIONS ARE DISCUSSED PRIOR TO DETERMINING IF A NEW BOND ISSUE IS THE WAY TO GO.

SO I HAVE SOME QUESTIONS.

WHAT DOES THE FINANCIAL PICTURE LOOK LIKE BEYOND THIS CURRENT YEAR? REPORTING SHOWS THE FISCAL YEAR PLAN, BUT I UNDERSTAND YOU HAVE A THREE-YEAR FINANCIAL PLAN PLUS A FIVE-YEAR CAPITAL IMPROVEMENT PLAN.

WHAT IS THE GAP YOU'RE LOOKING TO FILL? I THINK IT WOULD BE HELPFUL ONCE YOU KNOW THAT GAP TO LOOK AT AND DISCUSS VARIOUS LEVERS TO PULL AND HOW MUCH THEY CAN CONTRIBUTE.

SEEING DIFFERENT SCENARIOS WOULD MAKE FOR GOOD DISCUSSION AND GOOD DECISION MAKING.

FOR EXAMPLE, HOW MUCH CAN YOU FUND YOUR GAP OR CAPITAL IMPROVEMENT PLAN THROUGH DRAWING DOWN YOUR BALANCES AND STILL LIVING INTO YOUR MINIMUM FUND RESERVE REQUIREMENTS? HOW MUCH MONEY CAN BE CONTRIBUTED THROUGH STREAMLINED OPERATIONS? HOW MUCH MONEY COULD BE LEVERAGED THROUGH THE MILL RATE? MAYBE YOU WANT TO LAY A STAKE IN THE GROUND THAT YOU DON'T WANT TO INCREASE THE MILL RATE.

WHAT GRANTS ARE AVAILABLE OR OTHER FORMS OF REVENUE? IS THERE ANYTHING FROM THE C I P PLAN THAT COULD BE TABLED FOR NOW? ONCE YOU HAVE ALL THAT DETAIL, THEN WHAT GAP IS LEFT OVER AND NEEDED FOR A POTENTIAL BOND ISSUANCE WOULD BE, UM, CALCULATED.

AND IN MY OPINION, THIS SHOULD BE ONE OF THE LAST OPTIONS SELECTED IN THE DECISION MAKING PROCESS.

THANK YOU FOR THE OPPORTUNITY TO SPEAK TODAY.

THANK

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YOU.

THAT'S IT.

THAT IT? THANK YOU VERY MUCH.

I WANNA WELCOME, UH, COUNCILWOMAN BRYSON AND BECCA, UH, TO THE ROOM.

THANK YOU ALL FOR BEING HERE.

AS WE MOVE FORWARD WITH OUR DISCUSSION.

YOU ALL ARE ABSOLUTELY WELCOME TO, TO GIVE COMMENTS ALONG THE WAY.

UM, SO UNFINISHED BUSINESS.

WE HAVE MR.

[6. Unfinished Business]

UH, WE'VE HAD MR. TROY BEFORE US BEFORE.

UM, THIS IS JUST ANOTHER OPPORTUNITY FOR US TO HAVE A DEEPER UNDERSTANDING OF THIS PARTICULAR OPTION OF, OF FUNDING, UH, KEEPING IN MIND THAT WE HAVE, UH, MANY INITIATIVES AND PROJECTS, UH, THAT WE ARE READILY PLANNING FOR.

AND EVENTUALLY THERE WILL BE A PRICE TAG ASSOCIATED THAT WE WILL HAVE TO FILL.

SO, UM, MR. TROY, IF YOU CAN ENLIGHTEN US ONCE AGAIN.

THANK YOU, SIR.

THANK YOU, MR. CHAIRMAN.

YEAH, THIS IS AN REALLY AN OPPORTUNITY FOR, UM, THE COMMITTEE MEMBERS TO, UM, HAVE A DISCUSSION, HAVE A CONVERSATION, AND, UM, SEE IF THERE'S ANY QUESTIONS.

AND SO THAT'S, UH, MY PURPOSE TODAY IS JUST TO OFFER, UM, A FORUM SO THAT WE CAN HAVE A CONVERSATION.

UM, UH, THIS IS REALLY SOMETHING, UH, FROM JUNE.

I, I CHANGED A COUPLE OF SMALL THINGS, UM, ABOUT THE SCHEDULE.

AND SO, UM, HERE'S SOME DEBT SERVICE FUND BUDGET HIGHLIGHTS.

HERE'S OUR CURRENT BUDGET, JUST A LITTLE BIT ABOUT IT.

HERE'S THE NUMBERS THAT GO WITH IT FROM THE REVENUE SIDE, UH, PIE CHART WITH THE REVENUES.

UM, HERE'S OUR, UM, EXPENDITURES, PRINCIPLE INTEREST, UM, POSS POSSIBLE NEW DEBT.

HERE'S OUR, UM, DEBT STRUCTURE.

HERE'S THE NUMBER OF DIFFERENT, UM, BOND ISSUES THAT WE HAVE OUTSTANDING RIGHT NOW AND THE MATURITY DATES RELATED TO THEM.

UM, WE HAVE MADE A SIGNIFICANT DECREASE IN OUR OUTSTANDING DEBT IN THE LAST SEVERAL YEARS.

SO YOU CAN SEE A TREND IS VERY FAVORABLE FOR THE TOWN.

UM, OUR GENERAL RESERVE, UM, POLICY LIMITS HAVE BEEN RAISED IN OUR GENERAL FUND RESERVE HAS RAISED AS WELL.

AND SO THAT'S A ANOTHER, UM, PIECE TO THIS PUZZLE.

IT IS FUNCTIONING LIKE IT SHOULD AND, AND SHOULD GIVE YOU COMFORT THAT IT'S, UM, THESE OUTCOMES ARE WHAT YOU WOULD HOPE AND EXPECT.

UM, WE'VE HAD SOME GOOD COMMENTS FROM A BOND RAIDERS.

UM, WHY WOULD WE EVEN TALK ABOUT THIS? WELL, UM, ONE THING THAT'S IN OUR CAPITAL PLAN IS FIRETRUCKS AND FIRETRUCKS HAVE BEEN DELAYED DUE TO OUR, UM, SUPPLY CHAIN PROBLEMS. BUT, UM, IT HAS ALWAYS BEEN THE INITIATIVE OR THE, UH, DESIRE OF THE, UM, COUNCIL THAT WE WOULD ENTER INTO A LEASE FOR THE, UM, FIRE TRUCKS.

UM, WE'RE HOPING THAT WE WILL GET, UH, DELIVERY SOMETIME THIS FISCAL YEAR.

AND SO WE'LL NEED A FUNDING STRATEGY FOR FIRETRUCK FOR SURE.

WE, THERE'S NOTHING TO PREVENT US FROM DOING A LEASE.

WE CAN DO A LEASE TRANSACTION BY ITSELF, AND THAT'S, THAT'S NOT PROHIBITED.

WE CAN DO THAT.

UM, BERE NOURISHMENT IS, UM, UH, SOME OF THE BACKGROUND WORK IS HAPPENING RIGHT NOW FOR THE BERE NOURISHMENT.

WE EXPECT SOME OF THE BIGGEST PART OF THE WORK TO HAPPEN NEXT YEAR.

AND SO IF YOU LOOK AT THE FIVE YEAR C I P, THERE'S A, A REAL, UM, INCREASE IN THE ACTIVITY NEXT YEAR.

AND THAT NUMBER ONE REASON FOR THE INCREASE IN THE ACTIVITY NEXT YEAR IS BEACH RENOURISHMENT.

WE HAVE IN THE PAST, UM, GONE OUT AND HAD A BEACH RENOURISHMENT BONDS STILL AN OPTION, NOT A PROBLEM.

UM, THE TOWN COULD DO THAT.

UM, AND, AND HAS DONE THAT VERY SUCCESSFULLY, UM, AND ACTUALLY BEEN A LEADER IN THE STATE BY USING THAT TOOL TO ACCOMPLISH A BEAT TREE NOURISHMENT.

UM, COUNCIL HAS, UM, MADE A FEW, UM, STRATEGIC PURCHASES ON, UM, LAND RECENTLY AND, AND IF COUNCIL WERE TO CHOOSE, SO COULD CONTINUE TO DO THAT.

AND THEY MAY WANT TO CONSIDER SOME BONDING FOR LAND PURCHASES DEPENDING ON THE APPETITE AND PRIORITIES OF COUNCIL.

AND SO, UH, ONE OTHER OPTION IS TO CONSIDER, WELL, WE'VE GOT ALL OF THESE DIFFERENT THINGS KIND OF HAPPENING.

UM, COULD WE, OR WOULD WE PACKAGE THESE UP IN ONE? AND, UM, I P R B COULD BE A GOOD TOOL IN ORDER TO ADDRESS ALL OF THESE AT THE SAME TIME.

AND IT'S SOMETHING TO THINK ABOUT.

UM, CERTAINLY A TOOL IN THE TOOLBOX.

I THINK THAT'S A GOOD DESCRIPTION FOR IT.

UM, WE COULD USE GENERAL OBLIGATION BONDS.

THERE'S STATE LAW LIMITS ON THOSE.

WE COULD USE SPECIAL REVENUE BONDS, UM, AND THEN WE COULD USE THESE.

AND, UM, AND, AND THE FLIP SIDE OF THAT IS IF WE DON'T USE A TOOL LIKE THESE, WE CAN CASH PAY FOR THESE THINGS.

BUT WHAT THAT DOES

[00:15:01]

IS EXTENDS YOUR SCHEDULE.

AND SO IF YOU WANT TO KEEP THE MOMENTUM OF THE C I P THEN YOU PROBABLY WANNA LOOK AT SOME OF THESE OPTIONS.

UM, THIS IS SOMETHING THAT I THINK IS REALLY IMPORTANT TO TALK ABOUT IS JUST THE SCHEDULE.

UM, NOT THAT ANYTHING'S GONNA HAPPEN FAST, BUT HERE'S KIND OF A BRIEF OUTLINE OF HOW THIS MIGHT HAPPEN.

AND, UM, IT MIGHT TAKE FIVE OR SIX MONTHS IN ORDER TO EFFECTUATE THIS.

AND SO TOWN COUNCIL MAKES A DECISION, THEY MAKE A RECOMMENDATION, AND THEN THERE'S STILL QUITE A BIT TO DO, UM, TO PACKAGE THE BONDS, UM, SELL THEM ON THE OPEN MARKET AND UM, UH, SEEK DELIVERY.

AND SO THERE'S, THERE'S A PROCESS TO THAT AND A LITTLE BIT OF TIME.

AND SO LET'S, UM, SEE WHAT WE GOT.

WE'VE HAD DISCUSSION WITH COUNCIL.

WE'VE HAD OUR FINANCIAL ADVISOR TALK A LITTLE BIT.

UM, REALLY THIS IS MY OPPORTUNITY TO ASK, UM, OR PROVIDE A OPPORTUNITY FOR QUESTIONS FROM THE COMMITTEE MEMBERS AND MAYBE, UM, ADDRESS SOME OF THOSE, UM, COMMENTS.

PARK, UM, AND WE NEED TO BE VERY CAUTIOUS ABOUT THAT.

TAKE DIRECTION.

UM, COUPLE THINGS MR. TROYER.

I THINK THE HONOR HAD FORM THAT'S SUGGESTED HERE FOR, UH, AGGREGATING THE PROJECTS TOGETHER IS BY THE, UH, SOME OF THE MATERIALS PRESENTED BY THE FINANCIAL ADVISOR INDICATED, UM, IN VERY VAGUE LANGUAGE, WHETHER CERTAIN BENEFITS OR DETRIMENTS COULD OCCUR.

AND I THINK I'D LIKE TO HEAR MORE, UH, ABOUT THAT.

'CAUSE THEY USED A, UH, GENERAL LANGUAGE.

UM, WHAT CONCERNS ME MORE, UH, IS BORROWING MONEY AT, AT WHAT MAY BE THE TOP OF THE INTEREST RATE MARKET.

IS THERE ANY CONSIDERATION TO, UH, A SHORTER TERM FINANCING WITH LOWER INTEREST CHARGES, SUCH AS BOND ANTICIPATION NOTES? UM, ABSOLUTELY THERE'S, UH, THAT'S A GOOD STRATEGY THAT HAS BEEN EMPLOYED IN THE PAST AND, UH, THERE'S NOTHING TO PREVENT THAT.

UM, AND, AND SO, UM, I THINK THAT SHOULD BE A PART OF THE DISCUSSION 'CAUSE I WOULD LIKE TO HEAR MORE ABOUT THAT AND THE POTENTIAL FOR A MUCH LOWER INTEREST RATE.

AS I RECALL, WHEN THE FINANCIAL ADVISOR WAS HERE LAST, THE EARLIEST POSSIBLE REFUNDING WOULD BE 10 YEARS, UH, DEPENDING ON HOW WE, UM, AND THAT'S A TRADITIONAL STRUCTURE.

UM, THERE HAVE, WE HAVE SEEN AND UTILIZED, I THINK EIGHT YEARS IN THE PAST, BUT THE TRADITIONAL WAS 10.

UM, BUT UTILIZING THE, UH, BOND ANTICIPATION NOTE, UH, WE DID ONE FOR THE BEACH TREE NOURISHMENT AND IT WAS A ONE YEAR NOTE.

YOU GET ONE YEAR MONEY AND THEN, UM, ISSUE THE LONGER TERM BONDS A YEAR LATER TO COINCIDE WITH THE MATURITY, UM, LIKE YOU'RE TALKING ABOUT.

AND THAT LONG TIME BEFORE REFUNDING WOULD BE AVAILABLE IS WHAT ENCOURAGES ME TO THINK MORE ABOUT BOND ANTICIPATION NOTES SO THAT WE MIGHT BE ABLE TO TAKE ADVANTAGE OF A DROP IN INTEREST RATE MARKETS RIGHT NEXT COUPLE YEARS.

YES.

AND I THINK PART OF IT ALSO, WE'D WANNA PAY REALLY CLOSE ATTENTION TO THE, UM, MATURITY SCHEDULE.

AND SO KEEP THAT AS, UH, ON THE, THE SHORT END OF IT.

UM, WITH REGARD TO VARIOUS NEEDS, IT COULD BE BONDED BY VARIOUS SERIES OF BONDS, PUTTING IT ALL IN ONE, AT LEAST YOU WOULD SAY SIGNIFICANT COST, UH, ATTORNEY'S FEES, BOND COUNSEL FEES, AND SO FORTH.

SO BUNDLING TOGETHER AT FIRST BLUSH MAKES SOME SENSE, ASSUMING WE DECIDE THAT WE NEED TO INCUR THIS DEBT.

YOU MENTIONED SEVERAL THINGS.

ONE OF 'EM WAS THE, UH, FIRE ENGINE EQUIPMENT.

I WAS TAUGHT YOU LEASE WHAT DEPRECIATES AND BUY WHAT APPRECIATES.

I'M IN FAVOR, I THINK OF LEASING THE TRUCKS AND LETTING THE RISK FOR, UH, DECLINING VALUE FALL WITH SOMEONE ELSE.

UM, WE HAVE AN ENORMOUS C I P BUDGET, WHICH WE HAVE APPROVED BUT NOT FULLY FUNDED AT THIS POINT.

SO TO ME, A MAJOR USE FOR BOND FUNDS WOULD BE FULFILLMENT OF THE C I P BUDGET.

COULD WE IN FACT, REMOVE SOME OF THE ITEMS OR DELAY SOME OF THE ITEMS FROM THAT C I P BUDGET? I SUSPECT WE PROBABLY WILL, UM, BECAUSE OF RISING COSTS AND THE LIKE.

UM, WE'VE HEARD VERY LARGE NUMBERS FOR MID ISLAND

[00:20:01]

I LOOK AT MID ISLAND PARK AS A VERY LONG TERM PROJECT.

UM, IT'LL BE BUILT IN PHASES.

UM, AND SO IT'S TOO EARLY TO DECIDE THAT WE NEED TO RAISE THE MONEY FOR THAT, I THINK.

BUT IT'S SOMETHING CLEARLY THAT WE NEED TO KEEP IN MIND.

YOU ALSO MENTIONED BEACH TREE NOURISHMENT.

WE'VE BEEN SETTING ASIDE MONEY, UH, TOWARDS BEACH TREE NOURISHMENT FOR A NUMBER OF YEARS NOW.

ARE WE HEARING THAT WE THINK WE DO NOT HAVE ENOUGH MONEY TO FUND THE COST OF THESE RE NOURISHMENT? UH, IT'S GONNA BE CLOSE.

UM, SO OUR LATEST PROJECTION IS $35 MILLION.

WE'LL KNOW MORE IN THE NEXT SIX OR EIGHT MONTHS.

UM, AND WE'RE NOT QUITE THAT IN FUNDS SET ASIDE.

RIGHT? I AM OPEN TO FURTHER DISCUSSION ABOUT DEBT, BUT I'M CAUTIOUS ABOUT INCURRING DEBT UNLESS THERE IS A CLEAR NEED FOR IT.

UH, AND AS MR. ALFRED SAYS, WE WANNA WATCH THOSE INTEREST RATES BECAUSE THAT OBVIOUSLY INCREASED OUR COSTS.

SO I THINK STARTING THIS DISCUSSION IS VERY USEFUL.

THANK YOU, JOHN.

RIGHT, AND AND AND TO YOUR POINT, UM, PHASING IS CERTAINLY A TOOL THAT YOU CAN USE AND, UM, AND, AND I THINK IT NEEDS TO BE PART OF THE CONVERSATION, UM, JUST IN THE PRIORITY LIST IS, YOU KNOW, WHERE AND WHEN SHOULD THESE PROJECTS BE PHASED SO THAT, UM, IT IT BE BEST FITS, UM, THE TOWN'S PRIORITIES.

? YES.

THANK YOU THEMES, JOHN.

I APPRECIATE THE, UH, UPDATE AS ALWAYS.

UM, I REACTION TO WHAT YOU'VE PRESENTED IS A LOT OF THESE THINGS ARE GONNA FALL OUT NATURALLY AS THEY EVOLVE.

UM, SOME OF THESE THINGS, UM, WE NEED HAVE TO HAVE.

AND THEN IT'S A DECISION OF HOW WE, UH, FOR THEM, WHEN YOU TALK ABOUT THE CAPITAL IMPROVEMENTS PROGRAM, UH, OBVIOUSLY THAT DEPENDS ON WHEN WE HAVE SPECIFIC PROJECTS WITH SPECIFIC BUDGETS AND SO ON.

BUT AS ONE COUNCILMAN, I THINK IT'S VERY IMPORTANT FOR US AS A TOWN TO CONTINUE TO INVEST IN PROJECTS THAT INNU TO OUR BENEFIT.

THE BUSINESSES ON THE ISLAND, UM, GENERALLY TOURISM.

AND SO, UM, YES, INTEREST RATES ARE IMPORTANT TO FACTOR INTO THE CALCULATION, BUT, BUT I THINK IT WOULD BE A MISTAKE FOR US TO PULL BACK, UM, DRAMATICALLY FROM OUR INCLINATION TO IMPROVE THIS COMMUNITY.

THANK YOU, ALEX.

I HAVE ANOTHER COMMENT.

ABSOLUTELY.

UM, I DIDN'T MENTION LAND PURCHASES AND THE NEED TO FULFILL WORKFORCE HOUSING AND HIGHER INCOME HOUSING, UH, HERE ON THE ISLAND.

AND THAT IS CLEARLY A PRESENT NEED.

WE'RE GONNA HEAR SOME MORE ABOUT THAT, UH, IN A FEW MINUTES.

THE TOWN HAS ALREADY TAKEN A STRONG POSITION ON PUBLIC PRIVATE PARTNERSHIPS.

THERE'LL BE A NEED FOR FURTHER FUNDING THERE AS WELL.

WHETHER THAT CAN COME OUT OF THE BUDGET OR NEEDS TO COME OUT OF OTHER SOURCES IS YET TO BE DETERMINED.

SO I WANTED TO INCLUDE THAT.

'CAUSE IT'S, IT'S A VITAL PRIORITY FOR US HERE.

THANK YOU, MR. CHAIRMAN.

UH, MR. TROY, UM, AND FROM THE COMMITTEE IS WE WANT TO CONTINUE THIS CONVERSATION.

UM, I THINK ONE OF THE KEY COMPONENTS IS ABSOLUTELY WHAT IT IS THAT WE ARE TRYING TO ACCOMPLISH, UH, THROUGH INITIATIVES AND PLANS.

AND IN YOUR SCHEDULE HERE, UM, THERE'S CONSIDERATION OF POSSIBLE PROJECT CHOICES.

OKAY? UH, SO AT THE APPROPRIATE TIME, I'D LIKE FOR STAFF TO COME BACK BEFORE US WITH SORT OF THAT LIST OF WHERE WE'RE GOING, WHAT IT'S GONNA COST, AND THEN GIVE US ALL OF THE OPTIONS AS FAR AS FUNDING IT.

I THINK THAT WOULD BE, UM, APPROPRIATE FOR THIS COMMITTEE TO CONSIDER SO THAT WE CAN MAKE A QUALIFIED, UH, RECOMMENDATION TO, TO FULL COUNSEL AT THE APPROPRIATE TIME, RIGHT? AND, AND, AND I GUESS THAT'S WHAT WE WOULD LOOK TO THE COMMITTEE FOR IS, IS THE PRIORITIZATION OF THOSE.

AND, UM, YES, THANK YOU MR. CHAIRMAN.

BILL, THANK YOU.

ANYONE FROM THE PUBLIC WANNA SPEAK TO THIS TOPIC, PLEASE? MR. OLAND? YES, SIR.

YOU LOOK AT WHAT THE FEES ARE GONNA BE, THE LEGAL FEES FOR THESE, THESE BIRTH FOREMAN LAWYERS, IT'S PROBABLY GONNA BE TWO OR 300,000.

YOU KNOW, WHY DON'T YOU CONSIDER BEING RESPONSIBLE? TAKE THE TAXPAYER'S MONEY AND PAY FOR WHAT YOU CAN AFFORD CASH FLOW.

AND HECK EVEN TRY TO PUT SOME IN A RESERVE AND MAKE A PROFIT.

THIS IS A BIRTH FOREMAN.

YOU DIDN'T, YOU NOTICE WE DIDN'T HEAR BUR FOREMAN LAW FIRM IN ANY OF THIS, BUT WE DID SEE A PRESENTATION WITH HIM A WHILE BACK.

SO LEMME TELL YOU ABOUT BUR FOREMAN AND LEMME TELL YOU ABOUT BONDS AND BORROWING MONEY AND ALL THIS STUFF.

IT'S JUST ANOTHER FINANCIAL SCAM AND ANOTHER WAY TO PUT YOU IN DEBT.

AND IT'S ANOTHER WAY TO PROFIT THE LAWYERS.

THEY'RE PROBABLY GONNA, THE LAWYERS, WHICH GLENN STANFORD'S A LAWYER AND HE ALREADY BROUGHT IT UP.

UH, IF

[00:25:01]

WHO KNOWS WHAT IT'S GONNA BE.

BUT THIS IS ALL ABOUT THAT.

THAT'S WHAT IT'S ABOUT.

AND TROYER IS PART OF THIS.

AND UH, AND AGAIN, HE NEEDS TO BE AUDITED.

BUT, UH, THE OTHER THING NOT UNDERSTAND IS, AND MY UNDERSTANDING UNLESS IT'S CHANGED, IS BONDS WITH BUR FOREMAN ARE RETIRED BY HOSPITALITY TAX FUNDS.

AND THIS IS KIND OF TIED INTO THE, AT TAX FUNDS, YOU KNOW, HOS AT TAX OR ACCOMMODATION FUNDS ARE THE ROOM RENTALS, ET CETERA.

THE, THE HOSPITALITY FUNDS OR BEVERAGE, YOU KNOW, DRINKS AND FOOD, ET CETERA.

WELL, THIS, THIS, THIS INVOLVES TENS OF MILLIONS OF DOLLARS.

THIS IS BIG MONEY.

THIS IS NOT LITTLE MONEY, OKAY? AND THAT REVENUE IS HUGE.

BUT GUESS WHAT? THE ACCOMMODATION FUNDS AND THE HOSPITALITY FUNDS EVEN USED BY BOROUGH FOREMAN ARE UNACCOUNTED FOR AND DISAPPEARED.

THERE'S NEVER BEEN AN AUDIT OF ANY OF THIS MONEY.

NOW LEMME TELL YOU AN INTERESTING STORY ABOUT BUR FOREMAN.

BUR FOREMAN.

THE LAWYERS ARE THE ONLY LAWYERS THAT HAVE EVER SAT ON THE HILTON HIP BLUFFTON CHAMBER BOARD.

AND THEY EVEN ALLOWED ON THE BOARD.

IN FACT, OUR LOCAL JUDGE, RUSS KEAP, WAS REFUSED A MEMBERSHIP ON THE HILTON HIP BLUFFTON CHAMBER BECAUSE THEY DIDN'T WANT ANYBODY ASKING FOR ACCESS TO THEIR FINANCES.

AND THE BOROUGH FORMER LAW FIRM WAS STEVE RILEY'S LAWYERS AND THE BILL MILES PERSONAL LAWYERS, DAVID TICKETS AND WALTER NESTOR.

THEY COULD NOT BE ANY MORE CROOKED.

WE NEED FINANCIAL TRANSPARENCY.

TROYER WANTS US TO DO SOMETHING.

SOMEBODY ELSE WANTS US TO DO SOMETHING.

THE CHAMBER BILL MILES WANTS MORE MONEY.

SURE, WE'LL CONSIDER MORE MONEY.

SHOW US WHAT YOU DID WITH THE MONEY WE GAVE YOU.

LISTEN, WE WANT TO SEE A RECEIPT AND INVOICE AND HOW YOU USED EVERY DOLLAR OF OUR MONEY LEGALLY AND ILLEGALLY, OR YOU'RE NOT GONNA GET FUNDING.

IN FACT, YOU'RE GONNA BE REMOVED AND WE'RE GONNA HIRE SOMEBODY ELSE.

BE CAREFUL, BUYER OR BEWARE ANYONE ELSE.

AND THEN WE WILL MOVE ON TO OUR NEW BUSINESS.

WE NOW HAVE A PRESENTATION

[7. a. Presentation by the Coastal Community Development Corporation – John Troyer, Finance Director]

BY THE COASTAL COMMUNITY DEVELOPMENT CORPORATION.

ALAN WOLF, WILL YOU BE PRESENTING? YES.

OKAY, WELCOME SIR.

COUNCILMAN BROWN.

THANK YOU FOR HAVING ME.

UH, MY NAME'S ALAN WOLF.

I AM THE CHAIRMAN OF THE BOARD OF THE COASTAL COMMUNITY DEVELOPMENT CORPORATION AND LOOKING FORWARD TO GIVING YOU AN UPDATE, UM, WHERE WE STAND TODAY.

LITTLE INTRODUCTION.

IN SEPTEMBER OF LAST YEAR, THE CHIMNEY COVE, UH, RESIDENTS WERE ISSUED EVICTION NOTICES WE ALL REMEMBER.

AND THE COMMUNITY WAS REMINDED OF JUST HOW FRAGILE OUR WORKFORCE HOUSING MARKET IS.

OUT OF THAT CRISIS CAME DIALOGUE IN OCTOBER 1ST, 2022.

THANKS TO COUNCIL LAMES INTRODUCING ME TO SCOTT ERMAN AT THE COMMUNITY FOUNDATION OF THE LOW COUNTRY.

WE WERE ABLE TO DISCUSS A MODEL THAT CAME OUT OF THAT CRISIS, WHICH WOULD UTILIZE PUBLIC AND PRIVATE CAPITAL, ALONG WITH FUNDS FROM COASTAL STATES BANK AS A LOCAL BANK AND THE COMMUNITY FOUNDATION IN AN EFFORT TO PURCHASE EXISTING HOUSING FOR SALE IN THE MARKET WITH THE INTENT OF IT BEING MADE AVAILABLE FOR RENT TO LOCAL WORKERS.

WHAT BEGAN AS A VISION IN OUR MEETING LATER THAT WEEK WAS NOW TURNED INTO A REALITY.

WE'VE SPENT, UH, NEARLY 10 AND A HALF MONTHS ON THIS PROJECT NOW AT THIS POINT, AND AFTER SIX YEARS OF ADVOCATING FOR WORKFORCE HOUSING SOLUTIONS OVER THIS MICROPHONE, I BELIEVE OVER THE NEXT 15 MINUTES OR SO, YOU'LL UNDERSTAND THAT WE HAVE A VIABLE SOLUTION FOR ADDRESSING THE SHORTAGE FOR WORKFORCE HOUSING ON HILTON HEAD ISLAND.

EACH OF YOU HAS A PRINTED, UH, PRESENTATION BEING HANDED OUT.

IT'S FAR MORE TEDIOUS THAN THE FEW SLIDES WE'LL COVER TODAY, BUT WE LOOK FORWARD TO ANSWERING ANY QUESTIONS THAT COME OUT OF THAT WHEN YOU GET TO REVIEW IT FURTHER.

MOST NOTABLY, OUR APPROACH IS CONDUCIVE WITH THE TOWN OF HILTON NET CON COMPREHENSIVE PLAN THAT WAS ADOPTED IN OCTOBER OF 2020, IN WHICH A MULTI-DIMENSIONAL COMMUNITY WITH OBTAINABLE AND ACCESSIBLE HOUSING WAS A PRIORITY.

AND YOU'LL ALSO SEE THAT OUR EFFORTS WILL TIE IN SEAMLESSLY TO THE GOAL OF ENSURING GROWING OPPORTUNITIES TO PROVIDE WORKFORCE HOUSING THROUGH REAL INVESTMENTS AND LOCAL AND REGIONAL SOLUTIONS AS THE COUNCIL PASSED IN THE FINDING HOME PLAN IN NOVEMBER OF 2022.

SO THANK YOU COUNCILMAN BROWN FOR INVITING US TO SHARE THIS EXCITING UPDATE.

WE INTEND TO OFFER A HIGH LEVEL OVERVIEW AND THEN GET INTO QUESTIONS.

SO WHO WE ARE, OUR WEBSITE IS LISTED THERE FOR FUTURE REFERENCE.

UM, BUT MORE IMPORTANTLY THAN THAT, WE HAVE A BOARD OF SEVEN PASSIONATE COMMITTED COMMUNITY MEMBERS, THREE OF WHICH ARE HERE TODAY, KIM LICHENS, DAVE WETMORE, AND KEN CAMPBELL RIGHT BACK HERE.

SO THANK YOU YOU ALL FOR THEM.

THE BOARD HAS CORPORATE AND REAL ESTATE LAW EXPERIENCE, NONPROFIT ADMINISTRATION EXPERIENCE.

TONY AFIRE LO, UH, IS OUR TAX CREDIT SPECIALIST ON THE BOARD.

WE HAVE FINANCE AND OF COURSE ENTREPRENEURSHIP EXPERIENCE.

AND IT'S THANKS TO THE SWIFT WORK OF THIS BOARD OVER THE LAST SIX MONTHS.

AND KERRY WALKER

[00:30:01]

FROM SURGE RESTAURANT GROUP THAT WE'VE BEEN ABLE TO SHOW GET THIS, UH, NONPROFIT STARTED SO QUICKLY.

WE GOT OUR I R S APPROVAL OF NONPROFIT STATUS IN MAY OF THIS YEAR.

WHAT WE ARE DOING, OUR MISSION STATEMENT IS UP ON THE SCREEN NOW.

AS YOU CAN SEE, WE SEEK TO INCREASE THE AVAILABILITY OF HOMES FOR OUR LOCAL AND REGIONAL WORKFORCE BY PRESERVING EXISTING HOUSING, REDEVELOPING EXISTING PROPERTY, AND THEN DEVELOPING NEW PROPERTY TO MEET THE DEMAND OF OUR REGION WHILE SERVING WORKING RESIDENTS.

WE HAVE RESEARCHED AND IMPLEMENTED TOOLS TO ENSURE OUR IMPACT ON WORKFORCE HOUSING AVAILABILITY TO THE TARGETED AMMI IS OF 50% OF BEAUFORT COUNTY UP TO 150% OF ED INCOME.

UH, WE WILL BE IMPLEMENTING DEEDED RESTRICTIONS IN LINE WITH FUNDING REQUIREMENTS, BUT ARE SEEKING A 99 YEAR DEEDED RESTRICTION IN ALL THE PROPERTIES THAT WE PURCHASE.

THE ONLY TIME THAT WOULD BE LESS IS OF COURSE, IF YOU HAVE A LOW INCOME HOUSING TAX CREDIT THAT REQUIRES A SHORTER PERIOD.

WE HAVE DEVELOPED AN APPLICATION PROCESS, UH, TO ENSURE THAT WE CAN PRIORITIZE WORKERS WHO LIVE OR WANT TO LIVE IN THE COMMUNITY IN WHICH THEY WORK.

AND WE HAVE ENSURED THAT COMPLIANT, THAT THEY'RE COMPLIANT WITH FAIR HOUSING LAWS, UH, IN, IN BUILDING THOSE GUIDELINES.

AS YOU CAN SEE IN THE FINAL POINT THERE, NO SHORT-TERM RENTALS.

UH, OUR FOCUS ON LONG-TERM RENTAL WILL ALSO HELP MANAGE THE TOP TWO PRIORITIES THAT YOU ALL WORKED ON LAST WEEK FOR ABOUT, UH, SIX HOURS.

AND THAT'S OF COURSE IN THE STRATEGIC ACTION PLAN, THE GROWTH MANAGEMENT AND WORKFORCE HOUSING.

THIS REALLY HITS A SWEET SPOT FOR BOTH OF THOSE.

WHY ARE WE DOING THIS? UH, WELL, CERTAINLY WE BELIEVE THE CHALLENGE THAT WE ALL FACE IS QUALITY OF LIFE.

WE'VE BEEN TALKING ABOUT THESE THREE CIRCLES FOR FIVE YEARS THAT I'M AWARE OF.

UM, THE AVAILABILITY, COST AND QUALITY OF SERVICES ALL ADD UP TO OUR QUALITY OF LIFE AS RESIDENTS AND VISITORS.

AND WE BELIEVE THAT DUE TO WORKFORCE HOUSING BEING LIMITED, THAT QUALITY OF LIFE IS AT RISK.

YOU'RE PROBABLY FAMILIAR WITH A BIG NUMBER UP THERE.

2,335 WAS THE BEFORD COUNTY HOUSING NEEDS ASSESSMENT TOTAL OF RENTAL UNITS BY 2027 NEEDED IN THE MARKET.

UH, SUFFICE TO SAY WE DO NOT BELIEVE THESE NUMBERS CAN BE ATTAINED THROUGH DEVELOPMENT ALONE.

I DON'T THINK THERE'S, UM, THE TEMPERATURE FOR 200 PLUS CLASS A APARTMENT BUILDINGS BEING BUILT ON HILTON HEAD OR ANYWHERE IN BLUFFTON AT THIS POINT.

HOW WE ARE DOING THIS OVERVIEW OF THE MODEL, UM, WE HAVE BUILT THE C C D C TO LEVERAGE A HOST OF COST CURVE BENDING STRATEGIES.

AND WE, WE'VE BEEN WORKING FEVERISHLY TO INCLUDE THE ONES THAT YOU SEE LISTED HERE.

THE FIRST ONE BEING PROPERTY TAX ABATEMENT.

WHEN UNITS SERVE BETWEEN 50 TO 120% AND THE BALANCE IS LISTED IN THE WIDER PRESENTATION, YOU CAN QUALIFY FOR 0% PROPERTY TAX.

WE LEARNED THAT THROUGH THE GREENVILLE HOUSING FUND.

WHO'S MANAGED THAT VERY WELL.

WE HAVE FOUND LOW COST CAPITAL OPTIONS THROUGH ALTRUISTIC INVESTMENT, UH, COMMUNITY INVESTMENT FROM PLACES LIKE THE COMMUNITY FOUNDATION OF LOW COUNTRY AND BANK MORTGAGES THAT WOULD BE, UH, JUST A LITTLE BELOW THE MARKET TO HELP US MAKE THE PENCILS WORK.

OF COURSE, GRANTS AND DONATIONS, WE, UH, INTEND TO SPEAK WITH THE CHURCH COMMUNITY AND THEN WE ARE ACTIVELY WORKING WITH THE STATE HOUSING AND ANY FEDERAL PROGRAMS THAT WE CAN, THAT WOULD HELP SOLVE, UH, THE DEMAND THAT WE CAN SERVE THIS WORKFORCE WITH.

AND THEN LASTLY, THE BIGGEST COST BURDEN OR THE LAST COST CURVE BENDING STRATEGY IS THE NON-PROFIT APPROACH.

WHEN WE STARTED THIS BACK IN OCTOBER OF LAST YEAR, THIS DISCUSSION, WE WEREN'T SURE IF IT WAS A FOR-PROFIT OR NOT-FOR-PROFIT APPROACH, BUT WE QUICKLY BECAME, UH, BASED ON THAT PROPERTY TAX ABATEMENT AND THE GRANT ABILITIES, UH, CONVINCED THAT THAT WAS THE ENTITY.

AND THAT'S WHY WE STAND HERE TODAY IS THAT, SO WE ARE HERE TODAY TO REVIEW OUR REQUEST SUBMITTED IN MAY FOR THE, UH, FUNDS THROUGH INVESTMENT OR A GRANT OF $600,000 TO HELP US IN OUR PHASE ONE EFFORT TO PURCHASE 13 UNITS, WHAT WAS ORIGINALLY LISTED AS 12.

WE CAN BUY 13 UNITS ON HILTON HEAD ISLAND.

THOSE ARE CONDOS AND VILLAS WITH A TOTAL OF $3 MILLION, UH, FOR BUDGET.

THAT MEANS THAT FOR EVERY $1 OF MUNICIPAL FUNDS, THE C C D C WOULD BE FINDING $4 TO MATCH IT AND EXCEEDED TO MAKE THIS COME TO LIFE.

SINCE THE DAY I FIRST SHARED THIS VISION WITH COUNCILMAN AMES, THE BOARD HAS, OUR BOARD HAS REFINED, UH, THIS MODEL.

AND THANKS TO DAVE WETMORE WHO'S GONNA SPEAK NEXT.

WE'RE ON VERSION NUMBER 17 OF WHERE WE STARTED LAST YEAR IN OCTOBER.

UM, MUCH TO HIS DISMAY, PROBABLY IT'S FINE TUNED NOW, READY FOR YOUR REVIEW.

DAVE IS A BOARD MEMBER OF THE C C D C AS A PASSIONATE ADVOCATE FOR SOLVING THIS CHALLENGE.

AND HIS KNOWLEDGE AND INSIGHT HAVE BEEN INSTRUMENTAL IN OUR ABILITY TO PRESENT THIS TODAY.

UH, I'LL ASK DAVE TO JOIN ME TO REVIEW MODEL ONE AND EXPLAIN HOW $600,000 FROM THE TOWN COULD MAKE AN IMMEDIATE IMPACT ON THE HOUSING CHALLENGE THAT WE FACE.

THERE YOU GO, DAVE.

THANK YOU ALLEN.

UH, THANK YOU COUNCIL MEMBERS.

UH, THE COOL THING ABOUT THIS IS WE HAVE A REALLY SIMPLE, PRACTICAL, SUSTAINABLE WAY TO ADDRESS THE PROBLEM OF WORKFORCE HOUSING.

IT'S NOT THE BE ALL ANSWER, BUT IT DOES ADDRESS

[00:35:01]

AN ASPECT OF IT.

IT'S SIMPLE.

IT'S, IT'S A BUNCH.

WE COULD SAY TALENTED PEOPLE.

YOU MAY MAKE ANOTHER JUDGMENT AFTER TALK LISTENING TO US WHO ARE TRYING TO SOLVE THIS PROBLEM WITHOUT A PROFIT MOTIVE.

THERE'S NO PROFIT MOTIVE IN THIS.

WE'RE SPENDING ALL OF OUR TIME, WE'RE NOT GETTING PAID FOR IT.

WE'RE TRYING TO SOLVE A PROBLEM IN THE COMMUNITY IN WHICH WE LIVE, AND WE WANT TO SUSTAIN THE LIFE THAT WE ENJOY.

IT'S PRACTICAL.

WE DON'T HAVE TO BUILD ANYTHING.

WE DON'T NEED ANY ZONING VARIANCES.

WE DON'T NEED ANYTHING TO DO THIS.

ALL WE NEED TO DO IS PURCHASE EXISTING PROPERTIES AND THEN MAKE THEM AFFORDABLE FOR 99 YEARS FOR THE WORKFORCE.

AND IT'S SUSTAINABLE.

WE CAN DO THIS.

WE HAVE A PLAN TO B TO PURCHASE 500 UNITS OVER THE NEXT 10 YEARS.

IF WE'RE SUCCESSFUL, WE COULD PURCHASE A THOUSAND UNITS.

SO LET, LET'S TAKE A LITTLE BIT HOW, HOW THIS WORKS.

SO YOU'RE LOOKING AT PHASE ONE AND THERE WERE ABOUT 600 UNITS LAST YEAR THAT TRADED CHANGED HANDS, THE 200 TO $300,000 RANGE.

SO WE TOOK A LOOK AT THE ML LISTINGS.

THESE ARE ACTUAL LISTINGS THAT OCCURRED, AND WE PICKED OUT PROPERTIES THAT THESE ARE NOT WHAT WE WOULD NECESSARILY BUY, BUT THESE ARE REAL NUMBERS.

THESE ARE ON THE MARKET.

SO THESE WERE ALL REAL NUMBERS AND YOU CAN LOOK AT THESE.

UH, THE MODEL ASSUMES A PURCHASE PRICE AT ABOUT 95% OF, UH, SALES VALUE.

AND ALL OF THE COSTS ASSOCIATED WITH THOSE PROPERTIES ARE LISTED HERE.

SO WE PUT THAT INTO A MODEL.

UH, SO IS IT, WELL WENT THAT WRONG WAY.

THERE YOU GO.

UH, WE PURCHASE THESE, WE'RE BASICALLY HAVE A CONCEPT OF BUYING ABOUT A PROPERTY A MONTH.

I MEAN, FOUR IN A MONTH.

SO WE THINK WE CAN BUY ONE PROPERTY A WEEK.

AND IF YOU PUT THESE NUMBERS IN AND YOU CAN SEE THAT OUR RENTS, UH, START OUT AND THEN WE INCREASE THOSE RENTS AT APPROXIMATELY 4% A YEAR, NO MORE THAN THAT OVER THE NEXT 10 YEARS.

NOW, WHAT'S THE MAGIC OF THE 4%? YOU'LL SEE IT AGAIN.

4.17% WAS THE RATE OF APPRECIATION IN PROPERTY VALUES IN BEAUFORT COUNTY OVER THE LAST 20 YEARS.

IF YOU LOOKED AT THE RATE OF APPRECIATION OVER THE LAST FIVE YEARS, IT'S AN EXCESS OF 15%.

IF YOU LOOK AT THE LAST 10 YEARS, IT'S AN EXCESS OF 10.

SO IT LOOKS LIKE A FAIRLY CONSERVATIVE, UH, UH, NUMBER.

UM, THERE'S EARNINGS IN THERE, BUT IT'S AN INCONSEQUENTIAL NUMBER.

WE HAVE A MANAGER WHO HAS AGREED TO MANAGE THE PROPERTIES FOR 10% A YEAR.

UH, IF WE ARE SUCCESSFUL IN OUR EFFORTS, WE'LL GROW THIS TO WHERE WE HAVE ENOUGH UNITS, WE'LL DO IT OURSELVES, AND WE'LL CAPTURE THAT PROFIT MARGIN WHEN IT MAKES SENSE.

THERE'S A SMALL ADMINISTRATIVE FEE FOR C C D C.

IT DOESN'T COVER IT, BUT WE'VE ALREADY SECURED A GRANT FROM THE COMMUNITY FOUNDATION FOR A HUNDRED THOUSAND DOLLARS.

IT WAS CONTINGENT UPON US MATCHING, AND WE'VE ALREADY RAISED 125,000 AGAINST THAT.

SO WE ALREADY HAVE AN OPERATING BUDGET OF $225,000.

UH, REPAIRS AND MAINTENANCE, IT'S FAIRLY STANDARD.

IT'S A 12% NUMBER.

IT'S STANDARD IN THE INDUSTRY.

THAT NUMBER, BECAUSE WE WILL BE BUYING ONLY UNITS THAT WE BE, THAT WE WANT TO BUY.

WE'RE GONNA START OUT AT THREE, GO SIX, AND THEN NINE, AND THEN IT GOES TO 12 AFTER THAT.

SO WE'LL DO ALL THE WORK UP FRONT TO GET THOSE UNITS INTO THE STATE THAT WE KNOW TO.

AND THE REPAIRS AND MAINTENANCE WILL BE LOWER IN THE FIRST COUPLE YEARS.

UH, OWNERS AND CHURCH IS BASED ON CURRENT RATES AS YOU KNOW, I THINK THERE'S AN INSURANCE CRISIS IN HILTON HEAD.

THE COSTS ARE GOING UP.

WE'RE NOT TALKING ABOUT PROPERTIES THAT ARE LOCATED ON THE WATER EITHER.

NONE OF THESE ARE ANYWHERE.

NO, SOME THEY'RE NOT VERY CLOSE.

UH, UH, REGIME FEES, YOU KNOW, THAT ALSO REFLECTS THAT THAT IS INCREASED AT 5% A YEAR.

AND THEN THE PRINCIPAL AND INTEREST PAYMENT, UH, THIS IS BASED ON A LOAN AT 5%.

WE'VE BEEN WORKING WITH A LOCAL BANK TO GET A LOAN AT FIVE.

THAT WOULD BE AN ATTRACTIVE RATE.

IT'S BASED ON A 60% LOAN TO VALUE RATIO, WHICH IS A VERY CONSERVATIVE LOAN TO VALUE.

THERE'S VERY LITTLE EQUITY RI THERE'S VERY LITTLE EQUITY RISK FOR THE BANK IN THIS DEAL.

SO WE DON'T HAVE THAT NAILED DOWN.

IF THAT NUMBER GOES UP, WE WOULD RAISE SOME ADDITIONAL FUNDS, BUT WE CAN HANDLE IT.

SO THIS CASH FLOWS POSITIVE IN THE FIRST YEAR.

UH, IT IT ASSUMES THAT WE WOULD GET 600,000, WHICH WE'VE ALREADY REQUESTED FROM THE TOWN OF HILTON HEAD, UH, PROSPECTIVELY COMMUNITY FOUNDATION OF THE LOW COUNTRY.

IF, IF THE TOWN WAS TO GRANT THIS MONEY, UH, THAT THEY TENTATIVELY SAID THAT THEY WOULD CONSIDER MATCHING THAT GRANT THAT THEY LOVE TO DO MATCHING GRANTS.

UH, WE HAVE ALSO TALKED TO INDIVIDUALS THROUGHOUT THE COMMUNITY.

WE BELIEVE WE HAVE VERBAL COMMITMENTS

[00:40:01]

FOR ABOUT $2 MILLION ADDITIONAL.

IF WE ARE SUCCESSFUL IN RAISING TOWNS FUNDS, WE THINK WE CAN TAKE THIS AT A MUCH BIGGER LEVEL.

IT'S CRITICAL THOUGH, FROM ALL THESE POTENTIAL INVESTORS WHO WOULD BE BUYING, WHO WOULD BASICALLY BE BUYING A NOTE PAYABLE.

UH, THEY WOULD GET 3% RETURN CASH ON CASH.

YOU CAN SEE THAT IN THE MODEL.

IF APPRECIATION OF THE UNITS EXCEEDS FOUR POINT, IF IT, IF IT GETS TO ABOUT 4.7%, THEY WOULD GET AN ADDITIONAL 2%, WHICH WOULD BE CAPPED AT THAT RATE.

UH, THE MODEL WORKS BECAUSE AFTER 10 YEARS, IF YOU HAVE AN APPRECIATION OF AN EXCESS OF 4%, BASICALLY YOU'VE GENERATED ENOUGH VALUE THAT YOU CAN BORROW AGAINST THE 60%.

YOU CAN PAY OFF THE ORIGINAL.

AND YOU CAN SEE THAT ON 13.

SO THE SOURCE OF FUNDS I TALKED ABOUT BEFORE, THAT'S WHAT WE DO AT THE END OF 10 YEARS.

UH, IT IT, WE MIGHT DO IT DIFFERENTLY THAN THAT DEPENDING ON THE INTEREST RATE ENVIRONMENT.

YOU WERE TALKING ABOUT IT EARLIER IN THE BOND DISCUSSION, WE'D HAVE THE SAME ISSUE.

I MEAN, WE WOULD WANNA REFINANCE OVER THAT PERIOD OF TIME, PRESUMING THAT WE HAD SUFFICIENT VALUE.

WE WOULD WANNA RE REFINANCE WHEN THE INTEREST RATES WERE MOST FAVORABLE.

AND UH, BUT WE WOULD BE MONITORING THAT ON A REGULAR BASIS.

SO WE THINK THIS MODEL, WE KNOW THE MODEL WORKS.

UH, WE ARE, UH, LOOKING FORWARD TO THE 600,000 FROM THE TOWN AND WE THINK WE CAN RAISE THE MONEY TO GET THIS THING KICKED OFF.

UM, YOU CAN SEE WE'VE COVERED A LOT OF GROUND OVER THE LAST 10 AND A HALF MONTHS.

UM, HE, UH, DAVE REFERENCED THE MATCHING GROUND, WHICH WE'RE VERY EXCITED ABOUT FROM THE COMMUNITY FOUNDATION.

WE'VE ALSO CLOSED ON THREE UNITS ALREADY.

TWO, TWO BEDROOM WOODLAKE UNITS AND MOST RECENTLY A ONE BEDROOM MARSH SIDE UNIT.

AND I THINK IT'S IMPORTANT TO SHARE THIS QUICK TWO AND A HALF MINUTE, UH, TESTIMONIAL THAT YOU'LL SEE FROM OUR MOST RECENT TENANT WHO IS A WORKER ON HILTON AND ISLAND.

I MOVED DOWN HERE, DOWN HERE, COLUMBIA, SOUTH CAROLINA, ABOUT A YEAR AND HALF AND A HALF AGO AGO I WORKED, I WORKED YOU BACK.

TELL ME A FEW.

WANT ME TO GO GOOD ON THE AISLE AT ONE OF THE LAW FIRMS. FIRMS. I'M A PARA AND TO IS THAT FEEDBACK LUKE FROM? THAT'S US.

OH YEAH.

MAYBE.

PROBABLY ME ACTUALLY.

YEAH, THAT'S ALL.

CUT 'EM.

CAN YOU CUT MICS? SHE DOES SUCH A BETTER JOB TELLING HER THAT.

I WILL, BUT I COULD TRY IF YOU LIKE ME TOO.

BETTER LOOKING.

NO QUESTION.

I MOVED DOWN HERE, DOWN HERE.

COLUMBIA? YEAH.

UM, MICRO THANK YOU QUESTIONS.

YEAH, SURE.

UM, DID YOU WANT ME TO OPEN UP TO QUESTIONS FROM YOU? UH, COUNCILMAN? OKAY.

VERY GOOD.

TURN MY MICROPHONE BACK ON AGAIN.

I'M VERY IMPRESSED WITH WHAT YOU'VE DONE SO FAR AND I APPRECIATE THAT VERY MUCH.

I KNOW THIS HAS BEEN A SINCERE AND GENUINE EFFORT, UH, AND IT'S APPRECIATED CONJUNCTION WITH RAISING $600,000 FROM THE TOWN.

WHAT I NEED TO KNOW IS FROM OUR TOWN LAWYERS, WHAT ARE THE RESTRICTIONS THAT MIGHT APPLY ON OUR APPLYING THOSE FUNDS ON THAT PURPOSE? THIS WOULD BE DIFFERENT FROM THE WAY THE NORTH POINT, UH, PROJECT IS CONCEPTUALLY, UH, TO BE UNDERTAKEN IN THAT IN THE CASE OF NORTH POINT, THE TOWN WOULD CONTINUE TO OWN THE UNDERLYING LAND.

THAT WOULD NOT APPLY IN THIS PARTICULAR PROJECT, I DON'T THINK, AND I DON'T THINK THAT MAKES IT FATAL AT ALL.

BUT I NEED TO GET COMFORT THAT WE ARE APPLYING PUBLIC FUNDS IN THIS PURPOSE AND THAT'S LAWFUL AND A PROPER USE OF THOSE FUNDS.

UNDERSTOOD.

UM, THE OTHER QUESTION THAT I WOULD HAVE FOR YOU IS, WHAT IS THE CAPITAL THAT YOU HAVE RAISED SO FAR? I DON'T THINK THAT WAS INCLUDED IN THE PRESENTATION SO FAR.

WE HAVE $225,000 FOR ADMINISTRATIVE FUNDS THROUGH A $100,000 MATCHING GRANT.

AND THEN WE'VE GOTTEN OTHER DONATIONS OF 125,000 AND WE HAVE SOFT COMMITMENTS FOR $2 MILLION FROM LOCAL COMMUNITY INVESTMENT, WHICH I BELIEVE DAVE COULD SPEAK TO, WHICH IS A HECK, HECK OF A START.

SO BASICALLY WE STARTED, WE THINK THAT WE STARTED IN TWO COMMUNITIES.

I LIVE IN LONG CO I'VE LIVED THERE A LONG TIME, 25

[00:45:01]

YEARS.

I HAVE A COMMITMENT FOR A MILLION DOLLARS FROM VARIOUS INDIVIDUALS THAT IF IT'S SOMEWHAT CONTINGENT ON THE TOWN PLAYING, YOU KNOW, PLAYING.

UH, WE ALSO TALKED TO PALMETTO DUNES.

WE ALSO HAVE A COMMITMENT, SOFT COMMITMENT FOR A MILLION DOLLARS IF WE ARE ABLE TO MOVE FORWARD THERE.

OUR IDEA IS TO GO FROM, FROM UH, GATED COMMUNITY TO GATED COMMUNITY, GET A LEADER IN THAT GATED COMMUNITY, AND THEN RAISE THE FUNDS.

UH, I GUARANTEE YOU ONCE WE RAISE A MILLION DOLLARS IN LONG COVE, UH, WEXFORD IS GONNA WANT TO RAISE MORE MONEY THAN LONG COVE .

SO MY QUESTION HAS TO DO WITH NOT WHAT YOU EXPECT TO RECEIVE IN TERMS OF CAPITAL INFUSIONS, BUT RATHER WHAT YOU HAVE, UH, ON THE BOOKS AT THIS POINT.

WELL, WE DON'T HAVE ANY IN THE BOOKS BECAUSE WE, WE HAVE TO HAVE A DOCUMENT CALLED A NOTES PAYABLE AGREEMENT, WHICH IS BASICALLY A PRIVATE PLACEMENT MEMORANDUM FOR, SO WE HAVE TO HAVE A LEGAL DOCUMENT WHICH EXPLAINS ALL THE RISKS OF INVESTING IN THIS.

SO BASICALLY IT, YOU HAVE TO BE AN ACCREDITED INVESTOR.

YOU HAVE TO RECOGNIZE THAT, YOU KNOW, YOU COULD LOSE EVERYTHING THAT THERE'S NO GUARANTEES AND THAT REMOVES THE LIABILITY.

SO THAT, THAT, THAT AGREEMENT IS SOMEWHAT DEPENDING ON US HAVING A MODEL THAT'S COMPLETED.

AND THE ONLY WAY WE CAN HAVE A MODEL THAT'S COMPLETED IS WE HAVE TO HAVE SOME COMMITMENT.

SO WE'RE, WE'RE PROBABLY A WEEK, A WEEK AWAY.

I'M NOT IMPLYING THAT THIS IS FATAL AT ALL TO YOUR PROJECT.

IT WAS JUST A QUESTION THAT I HAD ABOUT WHAT WAS THE CAPITAL THAT HAD BEEN GENERATED SO FAR.

AND THE ANSWER IS WE HAVE SOME PROMISES OUT THERE, BUT WE DON'T HAVE THE CASH IN THE BANK.

CORRECT.

AND WE SHOULD BE CLEAR THAT THOSE FUNDS FOR DOWN PAYMENT WOULD BE USED TO SERVE THE FULL 50 TO 150% OF AMIS.

WHEREAS WHAT YOU SAW IN THESE 13 UNITS THAT YOU HAVE THERE, THESE ARE RESTRICTED TO 50 TO ONE 20, THEY WOULD QUALIFY FOR THE PROPERTY TAX ABATEMENT.

SO, UM, THAT'S WHY IT TAKES A LITTLE MORE, UH, COST CURVE BENDING CAPITAL TO GET TO THOSE LOWEST NUMBERS.

UNDERSTOOD.

UM, HOW DO YOU ASSURE THAT THE LOWER A M I RANGES WILL BE ABLE TO PARTICIPATE IN THIS PROGRAM? OBVIOUSLY IT'S EASIER FOR THE HIGHER, NO QUESTION IN THE A M I RANGE.

SO IN THE MODEL THAT YOU HAVE, IN THE PACKET THAT I PRESENTED TO YOU, THERE'S A PAGE THAT SHOWS THE I R S FAIR HARBOR PRESCRIPTION OF 50, UH, 25% OF THE UNITS UP TO 50%.

YOU CAN HAVE 55% UP TO 80% AND THEN YOU CAN HAVE 20, 25% AT, UH, SO YOU'RE FOLLOWING THAT MODEL.

HAVE TO FOR THAT MODEL.

EXCELLENT TO QUALIFY.

UM, IS THE 600,000 THAT YOU ARE REQUESTING A ONETIME REQUEST OR DO YOU ANTICIPATE RECURRING REQUESTS? WE ANTICIPATE, UH, IF WE'RE GONNA GET TO DAVE'S NUMBER AT 500 UNITS OVER THE NEXT 10 YEARS, IT'S GONNA BE A, A REGULAR REQUEST.

THIS IS A PROOF OF CONCEPT STEP AROUND THESE 13 UNITS, WHICH WAS ISSUED IN THE LETTER THAT THIS WILL HELP US SHOW THE MODEL ON FULL FORCE SO THAT WE CAN PROCEED TO LARGER NUMBERS.

UH, ARE THE PEOPLE WHO ARE GOING TO OCCUPY THIS GOING TO BE RENTERS OR ARE YOU GOING TO SELL TO THEM EITHER AT THE OUTSET OR LATER ON? IT WILL BE RENTERS TO START, BUT WE HAVE PROGRAMS TO PRIORITIZE HOME PURCHASES.

AND I THINK WE'LL TOUCH ON THAT IN JUST A SECOND.

BUT ESSENTIALLY EARNING OUT OF AN A M I BRACKET IS A GREAT PROBLEM AND WE'LL GIVE SOMEONE A LONG PATHWAY.

UH, THE PACKET THAT I PRESENTED TO YOU ACTUALLY HANDLES THAT CONCEPT WHERE WE PROVIDE UP TO 24 MONTHS FOR SOMEONE TO ACTUALLY MOVE OUT INTO A DIFFERENT UNIT, BUT ALSO GIVE THEM THE OPPORTUNITY TO PURCHASE THAT OR ANOTHER ONE WITHIN OUR INVENTORY ALONG WITH DOWN PAYMENT EQUITY.

OR EXCUSE ME.

I GUESS THE BETTER WAY OF APPROACHING IT WOULD BE AT THAT 4.17% ANNUAL APPRECIATION NUMBER.

SO IF THE PROPERTY'S APPRECIATED 15% FOR THE NEXT FIVE YEARS, THE SELLER, THE PURCHASER WILL BE BUYING IT AT THE 4% INCREASE.

THEY HAVE A NICE BELOW MARKET GAP THAT WE END UP COVERING.

'CAUSE ALL WE NEED TO DO IS RETURN ON THAT 4.17% THAT WE'VE CONTEMPLATED.

WE, WE, WE ANTICIPATE HAVING LIKE WHAT WE CALL A PHANTOM STOCK PROGRAM, WHERE YOU WOULD BUILD EQUITY EACH YEAR.

THAT'S RIGHT.

AND THEN AT THE END OF FIVE YEARS, FOR EXAMPLE, YOU WOULD'VE $10,000 OF EQUITY THAT YOU COULD USE.

AND SO WE'D ENCOURAGE PEOPLE TO STAY IN THOSE UNITS AND WE WANT THEM TO, YOU KNOW, BE ABLE TO PURCHASE THOSE UNITS ALSO.

AND IT WOULDN'T NECESSARILY HAVE TO BE THE UNIT THAT THEY'RE IN.

IT COULD BE OTHER UNITS THAT WE OWN.

'CAUSE THEIR SITUATIONS MAY CHANGE.

AND THE, UH, MONEY THAT YOU'RE REQUESTING OF US, UH, COULD IT BE WORKED OUT IN A WAY SIMILAR TO THE WAY THE FOUNDATION IS, WHICH IS ON A MATCHING BASIS.

IF YOU RAISE SO MANY PRIVATE MONEY, YOU GET THAT MUCH OF OUR 600 AND SO FORTH, WE'D BE UP TO THE CHALLENGE.

THEMES.

HOLD MY COMMENTS, TRY AGAIN.

SURE.

ABSOLUTELY.

ALRIGHT, THANKS.

I'M DOWN, DOWN HERE, COLUMBIA SOUTH ABOUT ABOUT A YEAR AND A HALF, A

[00:50:01]

HALF AGO AGO.

I WORKED, I WORKED, I MOVED DOWN DOWN HERE, COLUMBIA, COLUMBIA SOUTH.

ABOUT A YEAR AND A HALF AGO AGO I WORKED, I WORKED MONT MORNING TIME ON THE ISLANDS.

THE COMMUNITY YOU WORK PART OF THIS COMMUNITY GO IN THIS COMMUNITY INCREDIBLE SHAPE.

, BEFORE YOU GO, UM, HOW DID YOU FIND MADISON? HOW DID SHE APPLY? HOW WAS SHE, UH, CHOSEN? GREAT QUESTION.

UH, MIKE MANTIS, UH, HAD A LIE HONOR.

WE WILL DO.

THAT MAY BE YOUR BIGGEST CHALLENGE TO DEAL WITH THE NUMBER OF PEOPLE WHO APPLY.

THAT WOULD BE A GOOD PROBLEM.

THAT'S FOR SURE.

UM, TO WRAP UP ON OUR SIDE TODAY, OF COURSE, YES.

WE WOULD LIKE TO SUPPORT FROM THE FINANCE AND ADMINISTRATIVE COMMITTEE FOR THE REQUEST OF $600,000 TO HELP US BEGIN PHASE ONE OF OUR WORK.

UM, AND THE BIGGEST PART IS, YOU KNOW, WHY, WHY WOULD WE ASK YOU TO PARTNER WITH THIS UPSTART NONPROFIT? UM, WE BELIEVE WE OFFER AN IMMEDIATE SOLUTION, A PRE FOR PRESERVATION OF WORKFORCE HOUSING.

WE'RE VERY HAPPY WITH HOW WE TIE INTO GROWTH MANAGEMENT.

THE 99 YEAR COVENANTS ARE THE BEST WE CAN COME UP WITH THE STATE OF SOUTH CAROLINA.

WE WILL PRIORITIZE HOME OWNERSHIP.

UM, AND WE BELIEVE THIS IS A COMMUNITY SOLUTION BECAUSE WE'VE ALREADY GENERATED RESIDENT SUPPORT, WE HAVE BUSINESS SUPPORT, WE HAVE, UH, COMMUNITY FOUNDATION SUPPORT, AND WE THINK THE TOWN WILL FIT IN VERY WELL.

THE POINT IS, IF YOU HELP US LAUNCH AND WE ARE SUCCESSFUL, WE HAVE 500 UNITS, AS DAVE SAID, THE NEXT TIME A CHIMNEY COVE CRISIS COMES UP, YOU CAN LOOK AT OUR BALANCE SHEET AS A RESOURCE SO THAT WE DON'T HAVE TO ALL BE PARALYZED BY THE CRISIS THAT THAT COMES AROUND AT THAT TIME.

FOUR, YOUR LEVERAGING DOLLARS.

I'D BE HAPPY TO TAKE FURTHER QUESTIONS.

THANK YOU, ALAN.

UM, JAMES, YOU HAD QUESTIONS? YEAH, I, I'M GONNA, I'M GONNA START OFF WITH, UH, I, UM, BELIEF THAT YOU HAVE FOUND SOMETHING THAT IS INNOVATIVE, THAT GOES IN A DIRECTION THAT IS POSITIVE AND THAT, UH, IS IMPORTANT PART OF THE TOOLKIT.

ADDRESS OUR CHALLENGES ON THE ISLAND.

I THINK THE NUMBER ONE, UH, BENEFIT FOR ME IS IT'S A PERMANENT SOLUTION WITH AN IMMEDIATE IMPACT.

UM, I'VE SAID IT'S ONE OF MANY APPROACHES.

IT'S NOT THE SILVER BULLET, BUT IT'S SOMETHING THAT NEEDS TO BE CONSIDERED.

IT IS A PUBLIC-PRIVATE PARTNERSHIP.

SO THOSE ARE ALL ABSOLUTELY ESSENTIAL INGREDIENTS TO A SUCCESSFUL PROGRAM FOR WORKFORCE HOUSING ON THIS ISLAND.

YOU NEED A PERMANENT SOLUTION.

YOU NEED TO LEVERAGE DOLLARS, YOU NEED PUBLIC PRIVATE, GOTTA FIND EVERY APPROACH THAT YOU CAN FIND.

SO, UM, I AM IN FAVOR OF THIS SUPPORT THE REQUEST, BUT I GO BEYOND THAT.

UM, I DON'T UNDERSTAND HOW THIS COMMUNITY CAN SCALE, UH, THIS TO THE EXTENT THAT EITHER YOUR VISIONS ARE SUGGESTING UNDER THE CURRENT, UM, STRUCTURE.

UM, THE TOWN HAS THE CAPABILITY

[00:55:01]

TO BOND PROBABLY BEYOND WHAT THE C D C DOES.

SO MY CHALLENGE IS, UH, HOW DO YOU CREATE THE ORGANIZATIONAL STRUCTURE, STILL MAINTAIN THE NOT-FOR-PROFIT, BUT ALLOW THE LEVERAGING CAPABILITY OF THE TOWN, HOSPITALITY TAX AT TAX VARIETY OF THINGS THAT OVER TIME COULD REALLY BE INSTRUMENTAL IN CREATING OR SOLVING, ADDRESSING THAT SCALE PROBLEM.

SO I'M, I'M LOOKING BEYOND THE $600,000, BUT I WILL SAY THIS, I'M GOING TO RELY ON OTHER PEOPLE TO TELL ME WHAT'S THE BEST WAY THAT $600,000 SHOULD BE EMPLOYED OR WHAT'S THE MECHANISM OR, YOU KNOW, I, I DON'T HAVE ENOUGH ANSWERS FOR THAT TODAY, BUT I, I, THE, THE CONCEPT IS GOING IN THE RIGHT DIRECTION AND YOU'VE GOT, UH, TALENT BEHIND YOU.

SO I'M WILLING TO SAY, LET'S MOVE THIS FORWARD CAVEAT BEING THERE ARE OTHER PEOPLE WHO HAVE TO DECIDE WHAT'S THE BEST MECHANISM, BUT I GO BEYOND THAT AS I WAS SUGGESTING.

THAT IS THAT THIS TOWN HAS TO UTILIZE EVERY POSSIBLE WAY OF SOLVING THE WORKFORCE HOUSING PROBLEM OVER THE LONG TERM.

AND BECAUSE THIS IS ONE OF THE WAYS I THINK WE HAVE TO EXPLORE HOW THE PARTNERSHIP MAY BE EXPANDED.

THANK YOU, MR. AMES.

UM, I'M GLAD TO SEE THAT YOU ALL, UH, NOT ONLY BEFORE US, BUT BEFORE, UH, AN OPTION FOR US TO CONSIDER MM-HMM.

UM, I'VE ALWAYS SAID THAT SOME OF THE REASON WHY WE ARE IN THIS CRUX IS BECAUSE THE, UH, ATTRACTION AND, UH, THE BEAUTY OF HILTON HEAD HAS SORT OF BEEN AN INCENTIVE FOR INVESTORS TO INVEST IN OUR PROPERTIES OTHERWISE THAN HOUSING FOR OUR WORKERS.

UM, AND, UM, THIS, THIS, UH, THIS SEEMS TO BE SORT OF RIGHT IN THE SHIP TO A DEGREE.

UH, SO WE ARE PUTTING FORTH INCENTIVES TO GET HOUSING FOR FOLKS THAT ARE GOING TO BUILD THEIR LIVES HERE, UH, THROUGH, THROUGH WORK AND PLAN.

SO I, I APPRECIATE, UM, YOUR TEAM'S EFFORTS, ALAN.

UM, A COUPLE OF QUESTIONS I WANTED TO ASK.

YEP.

UM, NOT THAT I'M LOOKING FOR AN ANSWER TODAY, BUT I WANTED TO AT LEAST BRING THESE OUT AS WE ARE, WE ARE MOVING FORWARD.

UM, THE SPEAKS TO A 4% INCREASE IN THE RENTS MM-HMM.

OVER TIME.

AND WE ALL KNOW THAT, UM, UH, INFLATION AND, YOU KNOW, WHAT FOLKS ARE WILLING TO PAY EMPLOYERS DOESN'T ALWAYS KEEP UP SURE.

THE MARKET.

UM, SO I'M JUST CURIOUS TO KNOW HOW, IF ANY WAY THERE CAN BE SOME ADJUSTMENTS THERE AS WE'RE, AS WE'RE MOVING ALONG.

UM, AND I'M SORRY THAT MS. MADISON'S VIDEO DIDN'T PLAY.

NO.

UM, AND YOU SAID THAT SHE WENT FROM 1600 A MONTH OUT OF THE EXTENDED STAY.

SHE WAS, I'M CURIOUS OF WHERE SHE IS NOW, WAS IN STUDIO YEP.

WITH, UH, PLUS FEES.

SHE SAID THOUGH SHE DID NOT ADDRESS HOW MANY DOLLARS THE FEES WERE ON TOP OF THE 1600.

RIGHT.

UM, ANY, ANY IDEA WHERE SHE IS NOW IN RENT? IT'S EXACTLY 1600.

YEP.

EXACTLY.

SO IT'S A LITTLE BIT LESS THAN SHE WAS PAYING THERE WITH NO DRIVING, NO TRAFFIC.

AND AS SHE POINTED OUT IN THE VIDEO, THE TIME IS BACK IN HER LIFE, AS SHE LOST ON THE ROAD.

AND YOUR MODEL SUGGESTS THAT WE ARE USING A STANDARD THAT SPEAKS TO 30% OF SOMEONE'S INCOME IS WHAT WOULD GO TOWARDS AFTER THE COST OF UTILITIES.

BACK IN THE EARLY TWO THOUSANDS, I GUESS, UM, TOWN COUNCIL CREATED A WORKFORCE HOUSING PROGRAM, ACTUALLY SOLD SOME HOUSES, UM, HAVE HAD SOME SORT OF DEEDED RESTRICTIONS ON THOSE.

AND THEN THERE WAS, AND THE OCCUPANTS, THE OWNERS COULDN'T SELL THEIR PROPERTY TO ANYBODY WHO QUALIFIED FOR WORKFORCE HOUSING.

A AS THEY D UH, DETERMINED IT AT THAT POINT.

POINT.

UM, WHAT KIND OF RESTRICTIONS ARE YOU CONTEMPLATING YEAH.

TO PREVENT THAT FROM HAPPENING AGAIN? OH, AND INCIDENTALLY SURE.

THE TOWN HAD TO RENEGE ON THE WHOLE PROGRAM BECAUSE THEY COULDN'T FIGURE OUT AN ANSWER.

WELL, WE HAVE FOUND, UH, EXAMPLES IN COLORADO, IN ASPEN WHERE THEY HAVE A COVENANT THAT DOES ALLOW, IN THE CASE OF FORECLOSURE, THAT DEEDED RESTRICTION TO COME OFF.

AND THAT'S ABSOLUTELY THE WAY THAT WE WOULD PROCEED, WHEREAS THE BANK IS STILL IN THE POSITION.

A, SO IF THERE WAS AN OPPOR, IF, AND NOW THE FORECLOSURE WOULD BE BY THE C C D C IN THIS CASE, IF WE OWN THE, IF WE OWN THE UNITS, UM, WE'VE NOT EXPLORED IT BEYOND THAT TO YOUR QUESTION, I'LL BE HAPPY TO DO SO.

THE HABITAT MODEL, UM, ADDRESSES THIS TO A CERTAIN EXTENT WITH A SECOND MORTGAGE.

UM,

[01:00:01]

UH, BUT I HAVE ALSO BEEN AWARE THAT, UM, HABITAT HELMS HAVE BEEN SOLD TO PEOPLE WHO DON'T QUALIFY.

RIGHT.

AND SO I THINK THIS IS A REAL ISSUE.

IF WE'RE GOING TO HAVE A PERMANENT SOLUTION, WE'VE GOTTA HAVE THE, THE FRAMEWORK TO PROTECT IT.

, UM, YOU'RE BUYING OLD BUILDINGS, UH, BY AND LARGE, AND THAT MAKES SENSE.

UH, YOU HAVE A 12% MAINTENANCE BUDGET, UM, THAT SOUNDS OKAY UNDER NORMAL CIRCUMSTANCES, BUT ARE YOU ANTICIPATING THAT YOU'RE GONNA HAVE TO HAVE SOME SORT OF A RESERVE, UH, IN CASE OF NOT NECESSARILY ISLAND CALAMITY, BUT BECAUSE OF, WELL, IT'S PART OF OUR ACQUISITION CHECKLIST, KNOWING THAT THERE WERE 600 UNITS THAT SOLD BETWEEN TWO AND $300,000 LAST YEAR.

WE WANT TO BE PICKY.

SO IF YOU LOOKED AT THE MARSH SIDE, YOU'D SEE THAT IT WAS IN IMMACULATE SHAPE JUST RECENTLY REDONE.

SO PART OF OUR EFFORT IS TO BUY PROPERTIES THAT ARE NOT IN NEED OF A TREMENDOUS AMOUNT OF WORK UPFRONT, WHICH LIMITS THE AMOUNT OF RESERVES AND ALLOWS FOR THAT THREE, SIX, 9% INCREASE UP TO 12% OVER FOUR YEARS.

UM, BEYOND THAT, WE DO, WE DO PLAN TO SPEAK TO THE FAITH COMMUNITY, THE CHURCHES, THE HILTON HEAD, UH, HOME BUILDERS ASSOCIATION TO HAVE AFFILIATES THAT WE CAN LEAN ON IF WE GET INTO THOSE POSITIONS WHERE WE NEED LABOR OR DOLLARS TO HELP WITH THE MAINTENANCE AND REPAIRS IF THEY GO ABOVE PROJECTED.

YOUR PRESENTATION REFERENCED A POSSIBLE PARTNERSHIP WITH THE TOWN IN THAT AREA AS WELL.

YEP.

THOSE ARE ALL THINGS WE CAN EXPLORE.

UM, JUST A HYPOTHETICAL, WHAT'S THE WORST CASE SCENARIO THAT PULLS THE RUG OUT FROM UNDERNEATH YOUR PROGRAM? UM, WE BELIEVE WE CAN WITHSTAND THE INCREASED REGIME, UH, INCREASES THAT WE SEE COMING FROM THE TAX STANDPOINT.

I THINK THAT THIS PLAN BECOMES MORE AND MORE AFFORDABLE OVER TIME.

TODAY IT'S EXPENSIVE TO BUY, UM, A FOREST COVE FOR $260,000.

YOU KNOW, 10 YEARS AGO WHEN IT WAS ONE 40, IT WOULD'VE MADE MORE SENSE.

THE GOOD NEWS IS 10 YEARS FROM NOW, OUR BASIS IS STILL TWO 60, SO IT WILL BECOME MORE AND MORE AFFORDABLE.

BUT IN THAT TIMEFRAME, WE WILL ENCOUNTER, LIKE EVERY ONE OF THESE OLD CONDOS AND VILLAS, WE'LL ENCOUNTER WHAT HAPPENS WHEN IT'S BEYOND ITS USEFUL LIFE.

AND THAT'LL BE, YOU KNOW, ATTACHED NOT JUST THE PROPERTIES THAT WE'RE INVOLVED WITH, BUT THE ENTIRE REGIMES HAVING TO ADDRESS.

SO WE'LL BE PART OF THAT.

DAVID, THE WORST CASE IS WE, WE WOULDN'T BE ABLE TO PAY BACK THE OUT MISSING.

WE'RE GONNA, WE'RE GONNA YOU.

COME UP, MR. WHITMORE, GET YOUR COMMENTS ON RECORD.

PLEASE, SIR.

ALRIGHT.

THE WORST CASE WOULD BE IF WE WEREN'T ABLE TO PAY BACK THE NOTES PAYABLE, AND SO WE WOULDN'T BE ABLE TO SUSTAIN, YOU KNOW, IT WOULD BE GREAT FOR, FOR THAT PERIOD OF TIME.

WE'D OWN THE PROPERTY AND THE RENTERS WOULD BE FINE.

IT WOULD BE PROTECTED FROM THE WORKFORCE STANDPOINT, BUT OUR ABILITY TO CONTINUE TO GROW THE PROGRAM WOULD DIE.

AND SO, I MEAN, IF THERE WAS A PROPERTY SLOWDOWN SIGNIFICANT, UH, AND THE VALUES DID NOT INCREASE, WE WOULDN'T BE ABLE TO PAY BACK THE ORIGINAL.

NOW WE BELIEVE THAT A LOT OF THE INDIVIDUALS THAT ARE WILLING TO PUT, INVEST IN THIS RIGHT NOW MAY INVEST IN THIS FOREVER BECAUSE IT SOLVES A PROBLEM.

AND IT'S, IT'S NOT MONEY THAT THEY'RE SPENDING, WE'RE JUST ASKING SOMEBODY TO TAKE AN ALLOCATION FROM, YOU KNOW, THEIR BOND PORTFOLIO AND PUTTING INTO SOMETHING THAT MAKES MORE SENSE FROM THE STANDPOINT OF THEIR COMMUNITY.

BUT THAT WOULD NOT BE GOOD.

WE WOULDN'T, WE WOULDN'T WANT THAT.

ALAN, UH, ONE OTHER QUESTION.

THANK YOU, DAVID.

UM, DOES YOUR SCENARIO ANTICIPATE THAT AS EMPLOYER EMPLOYEES WANT TO BUY UNITS THAT YOU MIGHT ACTUALLY BE DEPLETING YOUR INVENTORY? WE WOULD BE RECYCLING CAPITAL WHEN THEY DO PURCHASE.

'CAUSE THEY'D HAVE TO GO OUT AND GET A LOAN FROM A BANK OR A MORTGAGE, OR BRING CASH, WHICH WOULD ALLOW US TO GO DEPLOY THE MONEY FOR ANOTHER RESOURCE TO BE PURCHASED.

SO WE FEEL LIKE THAT ASSUMPTION IS THAT YOU'LL BE ABLE TO RECYCLE.

ABSOLUTELY.

YEAH, BECAUSE I, I, I AGREE WITH THE STRATEGY THAT TO THE EXTENT THAT EMPLOYEES CAN BECOME PROPERTY OWNERS, IT'S ADVANTAGEOUS TO THE COMMUNITY.

, I, I JUST WONDERED HOW THAT MIGHT IMPACT FINANCIAL MODEL.

YEAH, IT'S A GOOD PROBLEM FROM WHERE WE SIT.

WHERE AND HOW WE WOULD DO THIS? SURE.

JUST STOP IT, PLEASE.

UM, MR. TROYER, IS IT TOO EARLY TO, TO, UH, BEGIN TO THINK ABOUT WHERE WE, THE TOWN FINDS THIS MONEY AND LET IT, THE FACT THAT WE JUST ADOPTED THE BUDGET FOR THE UPCOMING FISCAL YEAR? OR DO YOU CARRY THAT MONEY IN YOUR POCKET RIGHT NOW? ? I, I THINK IT'S AN APPROPRIATE TIME TO START TALKING ABOUT IT AND THINKING ABOUT IT.

YES.

DO YOU HAVE IDEAS AS TO

[01:05:02]

AND I, AND I THINK TO, TO SPEAK TO GLEN'S, UM, COMMENTS IS THAT, UM, I THINK WE NEED TO MAKE SURE THAT WE HAVE A, THE, AN APPROPRIATE LEGAL STRUCTURE IN ORDER TO, UM, UM, FACILITATE A TRANSACTION.

UM, BUT, UM, THE TOWN HAS SET ASIDE SOME MONEY IN THE BUDGET FOR, UM, HOUSING.

AND I THINK THIS MIGHT, UM, BE A GOOD CONNECTION OR A, A GOOD UTILIZATION OF THAT.

IT'S ALMOST UNBELIEVABLE.

WE'LL OPEN IT UP FOR PUBLIC COMMENT AT THIS POINT.

YES, MR. HOAGLAND? I THOUGHT IT WAS A VERY GOOD PRESENTATION.

I THINK EVERYBODY'S HEART'S IN THE RIGHT PLACE, AND THEY PUT A LOT OF TIME INTO THIS, SO I CONGRATULATE 'EM FOR THAT.

UNFORTUNATELY, THERE'S A LOT OF HEADWINDS HERE.

UM, WHAT'S SAD TO ME IS THAT AFTER BEING LIVING HERE FOR ALMOST 50 YEARS, UH, THAT WE JUST FAILED TO DEVELOP A MASTER LAND PLAN.

WE SHOULD NEVER BE IN THIS SITUATION.

IT'S VERY, BUT WE ARE IN THIS SITUATION.

THAT'S A FACT.

WE CAN'T GO BACK.

UM, IF WE HAD A LONG COVE MASTER LAND PLAN OR MASTER LAND PLAN DEVELOPED, UH, WE WOULD, WE WOULD, WE WOULDN'T EVEN HAVE TO HAVE THIS DISCUSSION.

THE OTHER PROBLEM IS, WHICH IS A BIG PROBLEM, IS IT'S, UH, IT'S UNDER CONSTITUTIONAL STATE LAW.

IT'S ILLEGAL PERIOD TO USE, UM, TAX MONIES, PUBLIC MONIES FOR PRIVATE PURPOSES IN ANY FORM OR FASHION.

AND THAT'S WHY THIS TOWN HAS BEEN SUED FOR $600,000, UH, GIVEN TO SEA PINES FOR THE DREDGING OF, UH, OF HARBOR HARBORTOWN.

IT WAS AN ILLEGAL, UH, ISSUE OF OUR TAX MONIES FOR PRIVATE, UH, FOR, FOR PRIVATE PURPOSES THAT THE PUBLIC DOES NOT HAVE ACCESS TO.

ALSO, I UNDERSTAND THE SURGE GROUP.

THEY'VE BEEN VERY SUCCESSFUL.

I KNEW STEVE KARP FOR MANY, MANY YEARS, UH, IT GREAT JOB.

BUT THE PUBLIC TAX DOLLARS CAN'T BE USED IN ANY FORM OR FASHION TO HELP HIM MAKE IT EASY TO MAKE MORE MONEY THAT THEY'RE NOT PROFITING FROM, ET CETERA, ET CETERA.

AND THAT NOT JUST A SURGE GROUP, BUT OTHER PEOPLE AS WELL.

THE OTHER THING IS, DAVID, TO DAVID'S POINT, WHICH IS SPOT ON, IS, UH, YOU KNOW, I, I LIVE IN FLORIDA AND I, AND I LIVE IN SOUTH CAROLINA NOW RETIRED, AND NAPLES, FLORIDA, THE QUALITY OF CONSTRUCTION IS CONCRETE.

IT, IT, IT IS A HUNDRED YEARS.

YOU CAN, YOU CAN COUNT ON IT.

UH, IN FACT, MY, MY CONDO, I THINK IS 60, 60 YEARS OLD, SOLID CONCRETE REDONE.

THE PROBLEM IS WE HAVE A LOT OF VERY BAD CONSTRUCTION.

CONSTRUCTION HAS BEEN PASSED.

BUILDING CODES ARE SO, YOU KNOW, NOT SO GOOD.

AND, YOU KNOW, A 30, 20 YEAR OLD WOODEN FRAME STRUCTURE TO COUNT ON THAT, THAT THAT'S NOT GONNA COST LOTS OF MONEY TO FIX AND REPAIRS.

AND THEN WE'VE GOT INSURANCE.

WE HAVE ONE MORE HURRICANE.

I CAN TELL YOU WE'RE ALL LOOKING AT, PROBABLY MOST INSURANCE COMPANIES ARE GONNA PULL OUTTA HERE.

AND THE INSURANCE RATES HAVE GONE UP SO HIGH ALREADY.

SO NO INVESTOR LIKE ME WOULD EVER PUT THEIR MONEY INTO SOMETHING LIKE THIS BECAUSE IT'S JUST, IT'S JUST NOT GONNA GIVE THE RETURNS THAT I COULD GET IN THE STOCK MARKET OR OTHER, OTHER PLACES.

IT'S UNFORTUNATE.

I KNOW WE NEED IT, HOW WE'RE GONNA GET THERE.

I, I DON'T KNOW.

I HAVE NO IDEA HOW YOU'RE GONNA PULL IT OFF.

I, I HAVE NO IDEA.

BUT THERE'S A LOT OF HEADWINDS HERE.

AND, YOU KNOW, PRIVATELY, IF INVESTORS WANNA INVEST IN IT, PUT THEIR MONEY IN IT, BUY ALL THIS STUFF AND REPAIR IT, FINE, BUT THE PUBLIC NOT GONNA HAPPEN.

YES, PLEASE.

UH, MY NAME'S RANDY RUCKS.

UM, LAST FALL I DID A SIMPLE MARKET RESEARCH SURVEY FOR MS. LICHENS.

SHE RAN FOR, UH, TOWN COUNCIL.

AND WE, WE USED QUESTIONS THAT WE'D USED WHEN SHE RAN FOR MAYOR.

WE ADDED ONE OTHER QUESTION.

WE SAID TO A REPRESENTATIVE SAMPLE OF TAXPAYERS, HAVE YOU BEEN INCONVENIENCED BY THE SHORTAGE OF SERVICE STAFF OF ALL KINDS ON THE ISLAND? 80% SAID YES.

SO YOUR VOTERS ARE, ARE WELL AWARE OF THE SHORTAGE OF STAFF AND HOW THAT'S IMPACTING THEIR LIFE.

5 0 1 C THREE, AND THERE IS NO BENEFIT TO ANY PARTICULAR COMPANY ON THE ISLAND.

ANY OTHERS? EXCUSE ME.

UH, I JUST WANTED TO FOLLOW UP ON THAT INVESTMENT POINT.

WE DID USE THE TERM ALTRUISTIC INVESTMENT.

SO TO MR. HOAGLAND'S POINT, UH, WE WOULD UNDERSTAND THAT THERE'S AN ALTRUISTIC ELEMENT, NOT JUST A CAPITAL ELEMENT TO THAT INVESTMENT REQUEST.

GOOD AFTERNOON, KEN CAMPBELL.

THANK YOU ALL FOR YOUR SERVICE.

UM, COUPLE OF POINTS.

ONE, I THINK ALAN AND, UH, THEY HAVE DONE A WONDERFUL JOB OF PRESENTATION.

HOWEVER, YOU MISSED THE HIGHLIGHT.

SO YOU HAVE TO SEE MADISON, I THINK.

WE'LL MAKE SURE YOU ALL GET AN EMAIL WITH MADISON, THE VIDEO ON IT, BECAUSE YOU HAVE TO SEE MADISON, UH, UH, THAT WAS NUMBER ONE.

EMAIL IT TO US.

WHAT'S THAT? EMAIL IT TO US.

WE'LL DO THAT.

UH, SECONDLY, UH, UH, UH, NAMED S GROUP, UH, CAME UP AND, UM, UH, THIS I CAN SPEAK FOR THE ENTIRE BOARD, INCLUDING OUR CHAIRMAN.

UH, THIS HAS BEEN INITIATED BY ALAN AND THE SURGE GROUP, BUT THIS IS A INDEPENDENT

[01:10:01]

ALL COMPANIES WILL HAVE THE OPPORTUNITY TO INVEST AND UH, UH, ONE OF THE PROGRAMS WE'RE PUTTING IN PLACE AS A BUSINESS WOULD INVEST IN A UNIT.

IF THEY INVEST IN TWO UNITS, THEY GET A PREFERENCE FOR AN EMPLOYEE TO LIVE IN ONE OF THOSE UNITS.

SO WE, WE'VE GONE THROUGH ALL THAT.

UM, LASTLY, A UH, SALE TO A TENANT BECOMES VERY INTERESTING BECAUSE AS YOU MOVE A UNIT TO A TENANT, IT STAYS IN THE WORKFORCE HOUSING INVENTORY.

IT'S NOW CARRIED BY THAT PROPERTY OWNER.

'CAUSE THERE'S COVENANTS ON THE GROUND THAT'LL LAST 99 YEARS THAT WILL APPLY TO THAT TENANT AND THAT THAT PROPERTY.

SO WE REALLY, EVERY TIME WE SELL AND REPLACE, WE'RE INCREASING THE, UH, UH, TOTAL VOLUME OF WHAT WE'RE ACHIEVING.

THANK YOU ALL.

EXCEPT, EXCEPT UNDER, UH, BANKRUPTCY.

THAT'S RIGHT.

IF A BANKRUPTCY OCCURRED, WE BELIEVE THE BANKING LAWS OKAY.

WE, YOU CAN'T GET A LOAN IF YOU DON'T HAVE A WAY FOR THEM TO FORECLOSE AND GET VALUE OUT OF IT.

ANYONE ELSE? OKAY, SEEING NONE.

ANY, UM, ADDITIONAL QUESTIONS FOR, I'VE ALREADY, UH, STARTED TO SHORTEN IT.

C C D C? NO.

UM, SO, UH, AT THIS POINT, UM, I'M LOOKING AT YOU, MR. GRUER .

UM, WHAT I'M, WHAT I, WHAT I'M HEARING FROM, UM, MY COLLEAGUES HERE IS THAT WE'D LIKE TO EXPLORE THIS AS AN OPTION TO UNDERSTAND BETTER THE LEGALITIES, UH, ASSOCIATED WITH IT, AND ALSO THE FINANCIAL COMMITMENT AND WHAT THAT LOOKS LIKE AS WELL AS THE RETURN.

UH, SO THE DEVIL'S IN THE DETAILS.

I THINK WE'VE ASKED SOME, UH, SOME SURFACE QUESTIONS HERE TODAY.

I'M SURE THERE WILL BE MORE.

UM, BUT WE, WE WILL ASK STAFF TO, TO MOVE ALONG WITH THE DISCUSSION.

UH, SO WE'LL HAVE QUALIFIED INFORMATION TO, TO MAKE A DECISION HERE.

JAMES, I'D LIKE TO ADD TO THAT.

IN THE INTEREST OF TIME, MIGHT IT MAKE SENSE THAT A COUPLE OF STAFF MEMBERS ARE WORKING DIRECTLY WITH A COUPLE OF C D C MEMBERS TO TRY TO GET THE ANSWERS WHILE THEY'RE ASKING THEM? UH, THAT'S JUST A SUGGESTION.

CERTAINLY.

AND AT SOME POINT, THIS DOES NEED TO BE MOVED TO FULL COUNCIL.

'CAUSE ULTIMATELY THE COMMITTEE HAS THE ABILITY TO, TO HEAR THIS INFORMATION, BUT FULL COUNCIL NEEDS TO PROVIDE POLICY DIRECTION.

SO ULTIMATELY THERE'S A BALANCE TO BE STRUCK IN THERE ABOUT HOW MUCH INFORMATION DO YOU NEED TO HAVE A GOOD UNDERSTANDING OF THE PROGRAM VERSUS WHEN DOES IT TRANSFER OVER TO THE POLICY DECISION AND THEN START FORMULATING ACTUAL DOCUMENTS.

UM, SO I'M NOT SURE WHERE EXACTLY WHERE WE'RE AT YET.

WE'RE CLOSE TO KIND OF THE, A TIPPING POINT BETWEEN ONE OR THE OTHER.

BUT WHAT NEEDS TO HAPPEN IS A MOTION TO EITHER REQUEST ADDITIONAL INFORMATION BROUGHT BACK TO THE COMMITTEE, OR A MOTION TO MOVE THIS FORWARD TO COUNT COUNSEL WITH RECOMMENDATION THAT CERTAIN ACTIONS OCCUR.

GOOD ENOUGH.

JOSH, ON A PRELIMINARY BASIS, WE NEED TO KNOW IF WE CAN LAWFULLY PARTICIPATE IN A TRANSACTION LIKE THIS AND WHAT THAT STRUCTURE WOULD BE.

I REALIZE THAT'S NO SIMPLE QUESTION.

FROM THE 5,000 FOOT LEVEL, YES, I'M, I'M SURE THAT WE COULD MAKE THIS HAPPEN, BUT AS HAS BEEN STATED, THE DEVIL'S IN THE DETAILS AND THERE'S A LOT OF DETAILS WITH THIS THAT WOULD MEAN TO BE IRON OUT.

SO MR. GRU IS ASKING FOR US TO MAKE A MOTION TO SEND HIM OFF, TO BRING BACK MORE INFORMATION, IS WHAT I'M HEARING.

IF, IF WE BELIEVE WE NEED MORE INFORMATION AT THIS, AT, AT OUR NEXT MEETING, UM, I THINK THE, THE FUNDAMENTAL QUESTION THAT YOU ASKED, UH, IS GOING TO BE ASKED BY THE FULL COUNCIL.

SO IF I, I WOULD SAY WE MOVE THIS, I MAKE A MOTION THAT WE MOVE THIS RECOMMENDATION OF SUPPORTING $600,000, THE C D C, UH, TO THE FULL COUNCIL.

SECOND.

WILL MOVE ON TO OUR NEXT ORDER OF NEW BUSINESS.

ANY FURTHER DISCUSSION ON THAT? ALL IN FAVOR.

MOTION CARRIES.

OKAY, WE

[7.b. Consideration of a Resolution to Authorize Submittal of the Community Development Block Fund (CDBG) Entitlement Program Consolidated Annual Performance Evaluation Report (CAPER) for Program Year 2022 to the U.S. Department of Housing and Urban Development – Marcy Benson, Senior Grants Administrator]

I SEE MS. MARCY BENSON HERE.

SHE IS GOING TO BE BE ASKING US FOR CONSIDERATION OF A RESOLUTION TO AUTHORIZE SUBMITTAL OF THE COMMUNITY DEVELOPMENT BLOCK FUND ENTITLEMENT PROGRAM.

I'M GONNA READ IT VERBATIM.

TO THE COMMITTEE TO RECOMMEND TOWN COUNCIL APPROVE THE RESOLUTION TO AUTHORIZE THE SUBMITTAL OF THE TOWN'S 2022 COMMUNITY DEVELOPMENT BLOCK GRANT CONSOLIDATED ANNUAL PERFORMANCE EVALUATION REPORT AS REQUIRED BY HUD FOR PARTICIPATION IN THE C D B G ENTITLEMENT PROGRAM.

I'M ALREADY PAST MY HOUR THAT MR. STANFORD THREATENED ME ON.

SO , REALLY .

GOOD AFTERNOON.

I PROMISE I'LL TRY TO MAKE MY PRESENTATION AS AS QUICKLY AS I CAN.

UM, GOOD AFTERNOON FOR THE RECORD, MY NAME IS MARCY BENSON, SENIOR GRANTS ADMINISTRATOR FOR THE TOWN.

AND BEFORE YOU, TODAY IS A STAFF RECOMMENDATION

[01:15:01]

UM, LET'S SEE, HERE WE GO.

UM, THE C D V G ENTITLEMENT PROGRAM IS A FEDERAL PROGRAM THAT IS ADMINISTERED BY THE US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, AND IT PROVIDES ANNUAL GRANTS ON A FORMULA BASIS TO ENTITLED CITIES AND COUNTIES ON A POP.

UH, BASED ON DATA, POPULATION DATA FROM THE US CENSUS BUREAU.

UM, THE FUNDS ARE TO BE USED TO BENEFIT LOW AND MODERATE INCOME PERSONS BASED ON HUD GUIDELINES.

THE, UM, CAPER IS A REQUIREMENT OF THE C D B G PROGRAM AND IT REPORTS ON THE EXPENDITURES, ACCOMPLISHMENTS, AND PROGRESS TOWARDS ACHIEVING GOALS AND OBJECTIVES THAT WERE LISTED IN THE 2020 THROUGH 20 24 5 YEAR CONSOLIDATED PLAN, ALONG WITH THE 2022 ANNUAL ACTION PLAN.

UM, THE CAPER IS DUE ANNUALLY, 90 DAYS AFTER THE CLOSE OF THE PROGRAM YEAR.

AND THIS YEAR'S, UH, SUBMITTAL DUE DATE IS SEPTEMBER 28TH.

UH, THIS SLIDE REPRESENTS PROPOSED VERSUS ACTUAL OUTCOMES FOR 2022, UM, WHICH IS THE THIRD YEAR OF THE FIVE YEAR PLAN THAT WE'RE CURRENTLY IN.

UM, IT ALSO SHOWS 2021, UM, INFORMATION BECAUSE THOSE FUNDS WERE EXPENDED IN 2022.

AND IT ALSO SHOWS 2020 C D B G COVID FUNDS, UM, DUE TO A FUNDING RE ALLOCATION THAT THE TOWN ACCEPTED FROM HUD IN 2022.

WHEN WE DEVELOPED THE 2022 PLAN.

FUNDS WERE DESIGNATED TO BE USED FOR, UH, PUBLIC FACILITIES AND IMPROVEMENTS USING POPULATION DATA FROM THE CENSUS BUREAU.

AND THIS TABLE SHOWS THAT APPROXIMATELY 34,000 PEOPLE WERE ASSISTED WITH THE 2020 C D B G COVID FUNDS.

APPROXIMATELY 1500 PEOPLE WILL BE ASSISTED, UH, WITH THE 2021 C D B G FUNDS, AND APPROXIMATELY 4,400 PEOPLE WILL BE ASSISTED WITH THE 2022 C D B G FUNDS.

NOW THIS SLIDE SHOWS THE RESOURCES AVAILABLE AND THE GEOGRAPHIC DISTRIBUTION OF THE FUNDS.

UM, THERE WAS APPROXIMATELY $120,000 IN 2020 C D B G COVID FUNDS THAT WERE AVAILABLE AND APPROXIMATELY A HUNDRED THOUSAND WERE SPENT IN 2022.

UM, FOR 2021, THERE WAS APPROXIMATELY $350,000 AVAILABLE AND APPROXIMATELY 66,000 WERE SPENT DURING 2022.

AND AT THIS TIME OF REPORTING THE 2021 FUNDED PROJECT, WHICH IS THE PATTERSON PARK PROJECT, IS NOT YET COMPLETE.

HOWEVER, WE DO ANTICIPATE THAT THE REMAINING 2021 FUNDS WILL BE EXPENDED DURING 2023.

UM, IN, UH, THE 2022 FUNDS HAD APPROXIMATELY $236,000 AVAILABLE AND ABOUT 1300 WAS SPENT.

AND THAT PROJECT IS NOT COMPLETE EITHER, BUT THE SAME WITH PATTERSON FUNDING.

WE EXPECT THE MONEY TO BE SPENT IN 2023 FOR 2021 AND 2022 C D B G FUNDS WERE DIRECTED FOR PUBLIC FACILITIES OR INFRASTRUCTURE IMPROVEMENTS IN CENSUS TRACKS THAT MEET HUD'S, UH, LOW TO MODERATE INCOME REQUIREMENTS.

AND, UH, FOR THE 2020 C D B G COVID FUNDS, THEY WERE DIRECTED TO PUBLIC SERVICES THAT BENEFITED ORGANIZATIONS WITH A CLIENTELE OF 51% OR MORE LOW AND MODERATE INCOME BENEFICIARIES.

SO OUR NEXT STEPS FOR THE CAPER IS THAT A PUBLIC COMMENT PERIOD WILL BEGIN TOMORROW, AND WE WILL ALSO BE HAVING A PUBLIC MEETING TOMORROW EVENING HERE AT 5:00 PM TO SOLICIT INPUT FROM THE PUBLIC FOR THE CAPER.

UM, THE PUBLIC COMMENT PERIOD ENDS ON AUGUST 31ST AND THE DRAFT CAPER IS SCHEDULED TO BE PRESENTED AT THE SEPTEMBER 19TH COUNCIL MEETING WITH SUBMITTAL TO HUD ON, ON OR BEFORE SEPTEMBER 28TH.

SO, UM, IF THE COUNCIL HAS ANY QUESTIONS, I'D BE HAPPY TO ANSWER THEM.

ANY QUESTIONS? YES, SIR.

UM, MARSHA, YOU SHOW THAT SOME OF THESE PROJECTS ARE INCOMPLETE.

ARE WE AT RISK OF LOSING ANY OF THESE GRANT FUNDS PENDING COMPLETION OF THESE PRO? BECAUSE THESE PROJECTS HAVE BEEN DELAYED? SO WE WERE

[01:20:01]

DELAYED, UM, WITH THE PATTERSON PARK PROJECT DUE TO THE, UM, HISTORIC PRESERVATION PORTION OF THE ENVIRONMENTAL REVIEW, WHICH DID PUT US BEHIND.

AND WE HAVE SUBMITTED A TIMELINESS WORKOUT PLAN TO HUD TO SHOW THAT BY, UH, MAY OF NEXT YEAR THAT THE UH, FUNDS WILL HAVE BEEN EXPENDED AND WE'LL BE IN COMPLIANCE WITH OUR EXPENDITURE REQUIREMENT.

DOES THAT MEAN NO, WE'RE NOT AT RISK OF LOSING THESE FUNDS? , SORRY.

UM, IF WE STICK WITH OUR TIMELINESS PLAN, NO, WE ARE NOT IN, IN JEOPARDY OF LOSING OUR FUNDS.

I WAS GOING TO ASK SOMEWHAT THE SAME QUESTION, BUT TO FOLLOW UP ON THAT, IS THERE A STANDARD PERIOD OF TIME THAT'S SORT OF GIVEN AS, UM, BALANCE OR, SO THERE'S TO ANSWER, UH, THE DIRECT ANSWER IS YES, BUT THERE'S, UM, ANOTHER REQUIREMENT THAT WE CANNOT HAVE MORE THAN ONE AND A HALF TIMES.

OUR CURRENT ALLOCATION IN OUR FUNDING AMOUNT WE'RE GIVEN THREE YEARS TO SPEND THE MONEY.

UM, IT TOOK US OVER A YEAR TO COMPLETE THE, UH, HISTORIC PRESERVATION SECTION OF THE, UM, PATTERSON PARK PROJECT.

SO THAT PUT US A LITTLE BEHIND WITH THE, THE PART, THAT PART.

UM, BUT I'M HAPPY TO SAY SINCE JULY ONE, WE HAVE DRAWN DOWN, UM, ABOUT $23,000.

SO WE'RE, WE'RE ON OUR WAY TO MEETING OUR, UM, TIMELINESS WORKOUT PLAN.

SURE, ALFORD.

OKAY, THANK YOU.

UM, I JUST WANT TO MENTION THIS AGAIN, I KNOW I'VE SAID IT IN THE PAST.

UM, SOME HAVE TOLD ME BEFORE THAT I TEND TO CONTINUE TO BEAT DRUMS OR MAYBE LIKE THE SOUND OF THEM, BUT, UM, AS I CAN APPRECIATE US IN THE PAST, WE HAVE, UH, TRADITIONALLY PUT THESE MONIES TOWARDS PARKS AND NEIGHBORHOODS THAT, UH, EXPERIENCE, UH, LOWERING MODERATE INCOME, UH, CHALLENGES.

UM, BUT WE ARE A COMMUNITY THAT KNOWS HOW TO DO PARKS WITHOUT THESE MONIES.

UM, SO I WOULD LIKE TO SEE A SORT OF TRANSITION INTO THESE MONIES BEING PUT FORTH TO OTHER INFRASTRUCTURES THAT MAKE SENSE FOR THESE NEIGHBORHOODS OVER TIME.

UM, SO, BUT FOR NOW, WE ARE WHERE WE ARE.

ANY PUBLIC COMMENT ON THIS PARTICULAR ITEM? SEEING NONE.

YOU ARE LOOKING FOR THIS COMMITTEE TO MOVE THIS RESOLUTION ALONG, IS THAT CORRECT? YES, SIR.

ACCEPT FURTHER DISCUSSION.

MOVE TO, UH, ADOPT AND IMPROVE.

ALL IN FAVOR.