Work Session – Dec 14 2020

Good afternoon everybody welcome to the work session of Las Cruces city council today is Monday December fourteenth twenty twenty it’s approximately one PM. Please join me in the pledge of Allegiance please. Or. We have flag knight States America Republic for which it stands one nation under god indivisible with liberty and justice for all. Okay now when you go to the end of the week Which I believe Jennifer Martinez from a communications office will introduce. This right here. Get out. Afternoon Council and Jennifer Martinez with the City’s communications office. Yeah let me first introduce you to Lana Lana

first arrived at the shelter in the summer of twenty nineteen and she was adopted but brought back to the shelter for unforeseen circumstances the following month she was diagnosed with heart worms and we know treatment can be a little bit difficult so people are weary to adopt she does require a little bit more tension because of it. But she does like long walks she lives the cuddle and she could make someone very very happy and then we have another little kitten who also has some concerns this is Abigail who’s affectionately known as Gabrielle because of her skin condition- she also was though known for be a purring machine she loves to socialize with cats and dogs but she does need a home where she can keep. Her skin clear and healthy and be provided a special food and in return you will get all the love that she has and I did put of second photo in here of her because she is entirely cute right there. If you’re looking to adopt you can go to a S. C N. B. dot org slash and options the cost is twenty five dollars. The it out to be will go ahead and look for their animal number and call to make an appointment. The number is three eight two zero zero one eight and as well with many previous months the outside adoption events have been canceled until further notice We’re around Christmas time so if you have something extra to give the animal service center is in need of some donations so if you can. Look around the home you might have some things laying around kennels or crates dog sweaters blankets collars leashes and tells. You can drop them off during normal hours of operation and if they are close you can leave them at the door There is an upcoming didn’t meeting that’s of open form for the A. S. C. N. B. N. B. on Friday January eighth of twenty twenty one we are so close to the new year. It will take place from one to two PM if you have questions go ahead and email them in advance. To the director Clint Thacker that’s C. backer at Las dash Cruces org and any questions you have will be brought up at that meeting. And again we always bring about some sort of covert information and today it’s that. You and council mayor have assisted some businesses for the entirety of next year by reducing the business registration fee Communications office assisted economic development and learning the public and the business community that you are city council adopted the resolution to establish that reduced fee from January first to December thirty first of next year- helping to. Offset the negative impacts a little bit and we thank you very much for that I thank you much for your time have a great afternoon mayor thank you Thank you and good luck to the year. The pets of the week hopefully they get adopted- both could use some good homes Okay so now we’re gonna go to the jobs of the weekend I believe Cindi Quinlan. Well are you gonna be. Financing those Yes ir. Good afternoon every I’m so. And I’m the assistant one stop. For next board for connection. So this week’s and jobs in the weeks we have a part time community educator door City of Las Cruces. This position will be closing on Christmas Eve which is December twenty fourth two thousand twenty. We also have a material handlers position which is With manufacturing and this- position they have fifty positions. The employer is balance of staffing. I this position are also closes it won’t close until January of January sixteenth twenty twenty one already. So I next- this issue that we have open is a paramedic to a medical American medical response and they have a seventy five- on manager sign on bonus. This position- closes on March the seventh of two thousand twenty one. All we also have an I. T. tech support- through the physical science laboratory which is act and miss you disposition closes on January six of twenty twenty one. And we have three positions that are available through mountain regional Medical Center for certified nursing assistant these positions close on December eighteenth of two thousand twenty of this year. So for a full list of all the jobs that we have available internships and volunteer opportunities if you use visit us at H. TTP S R. W. W. W. dot employed New Mexico dot com and at W. W. W dot government. Jobs dot com backslash career backslash Las Cruces. And for our New Mexico workforce connection our office our contact information is Five seven five five two four six two five zero our location is at two twenty six south Alameda Las Cruces New Mexico eight eight zero zero five. You can also visit us on our web page at H. T. T. P. S. W. W. W dot employee and then .com Thank you so much everyone Okay well thank you very much Cindy so we’ve got three items on the agenda. The first one

being public banking and I believe that I miss Elaine Sullivan and Melissa Pickett Will be our presenters. And it’s good to see- mayor pro tem America Sherrin Thomas- join us so it’s good to see you. And I also see doctor almost one state senator elect. Kerry Hampton good C. and- I saw doctor. Ericsson from Mexico State University joined us that’s great. So well with that. You will turn it over this. Staff have a initial Presentation and- Barbara We’re going to go right through right to the line. This is Barbara deli on staff does not has have a presentation I believe are going right to the external presentation sounds good. Okay any lane Solomon Hello everyone- thank you mayor members of the council I’m a list of ticket and I’m the outreach coordinator for the alliance for local economic prosperity we do have one of our members Dan Mayfield who is waiting I believe to be let into the meeting that somebody might be willing to do that we have a bit of a change up and who will be presenting today And so if it’s if it’s good for everyone will just dive right in again I want. But he for allowing us. To be with you today thank you so much for your time. The as I said I’m not outreach coordinator for the alliance for local economic prosperity. Which is the think tank for the public bank for New Mexico. We need a state public bank to keep our revenue say local and working in local communities like Las Cruces The alliance for local economic economic prosperity. Is to bring a public bank to Mexico In a proposal called the public banking. This will come before the state legislature in twenty twenty one Las Cruces senator just dying boards are primary sponsor. We believe the public bank will provide a place for to Mexico to deposit its revenues instead of standing those revenues to out of state banks where there’s no benefit for Mexicans. Revenues in in Mexico public bank can be used for projects here Las Cruces Those funds can help Las Cruces and Donnie and county spend large public improvement projects. So you don’t have to use long term bonds for those projects. They can also be used to help Las Cruces businesses small entrepreneurs. Farmers and ranchers affordable housing projects. Recovery from natural disasters in renewable energy projects. I would like to turn over- now to my colleague Angela Merker who is the executive director of the alliance for local economic prosperity Angela. Thank you Melissa and honorable mayor and city councilors we appreciate the opportunity to spend this time with you today. So why a state public use me Angela uncertain ripping can you state your name because I know you just got it mounts but it just the just. Yes yeah Angela Merker. And is there an organization you represent yes I am executive director of the alliance for local economic prosperity okay thank you. So for increased effectiveness efficiency and focus in the state in the stewardship of New Mexico revenue we need a state public banks to keep our revenue will save local in working. We’re a rich state but we have a high rate of poverty and were often looked upon as being a poor state especially now in this pandemic time. Now is the time to increase the state’s financial capacity to support more of our current needs. And a public bank isn’t instrument that will make that possible. Can help Mexico. Well in New Mexico state revenue and fees are deposited in large Global banks they use our deposits as leverage to make loans and investments. And companies of their choosing to maximize profits for their stockholders that doesn’t help our local economy. If New Mexico head of state public bank. For our revenues our taxes and our trees that bank could use our deposits as leverage to make loans for the problems of our communities including infrastructure small businesses. Health clinic enhancements and more. The public bank’s mission would be to invest in a way that both enhances the vitality and viability of new Mexico’s

communities and economic sectors including increasing the potential of locally owned banks and credit unions and city of fires. And it Invensys the state’s public and private economic and community wellbeing by investing to increase their human and social capital. Build its infrastructure and regenerate its natural assets. A State Bank would develop community wealth not only individual well As a non profit a state owned entity loans can be made at a discount to other state agencies municipalities and trucks as well as increased the lending capacity of our community banks and credit unions. For example a simple fifty million dollars in capital and matching deposits could generate as much as five hundred million dollars of funds to leverage the projects that we need. I’d like to introduce now of someone well known to you senator elect him and one. Thank you sh. Thank you honorable mayor and council my name is carry handle and I’m the CEO and president of the Las Cruces green chamber of commerce and I do have to say that- as much as I’m enjoying wearing sweatpants and maybe dressing from the shoulders up- I do miss seeing all of you in person and cannot wait the day that we can do that- on that note- thank you for allowing me the opportunity to speak with you about public banks today- I do have to leave the meeting right after Russian speaking is. I required training as a newly elected senator- unit starts today and goes for one tomorrow and Wednesday so I’ll be straight to the point that you’re a public bank provides an opportunity for New Mexico to grow in for Las Cruces to benefit now although we have several agencies working together the City of Las Cruces including in the economic development department to help our economy and our small businesses during this challenging time a public bank would help businesses when we come out of the pandemic on the other side. Having the public bank is a great way for the state to support small businesses their landing supporting of local entrepreneurs and best of all and you know I talk about this all the time keeping our money in our state rather than it going elsewhere there is a precedent for this and it’s a great model to follow and it’s the bank of North Dakota we would not be reinventing the wheel. The bank of North Dakota or the B. and D. has been around for a hundred years and serves as a great example of helping various industries which in the state while keeping that money and its earnings from being dependent on Wall Street according to the website mask public banking org a public bank allows you minutes apology to benefit from state lending programs offer below market rate loans and leverage other capital for specific public purposes such as affordable housing Neighborhood development infrastructure small business development education and job creation we will need all of this. When we can begin operating as closed and as possible. Once we get on the- and further the website report that the public bank of Dakota earns ninety four million dollars last year of profits For north Dakota’s six hundred seventy thousand residents. The Andy deposits roughly half of its profits into the state’s general budget. And use the other half to increase its capitalization in order to make more loans. So you may agree that we need to diversify our economy number and we need to diversify our revenue streams This is one way we can do that And locally the banking do nontraditional loans in partnership with local banks and credit unions that helped the smallest the newest. Or the most fragile in our community and I know that all of you in your respective capacities. Get what it means to serve community and you’re done so actually and all the different areas that you represent. But the bank of North Dakota also already does this they provide loans for agricultural producers and buyers. For entrepreneurs for solopreneurs And many others and the bank can also help on the economic development programs that are small businesses are benefiting from Las Cruces. On the border and across the state. As the CEO of the green chamber I also see the connection a public bank has to help in the search the climate crisis or stop the common crime. Prices set up by term your best. This has the potential to bring substantial change The New Mexico’s gross true greener economy. Meeting our own jet electric generation timeline and funding. Clean energy projects with the state Yeah she married my one play you said that you wanted Las Cruces be the sole. Capital of the state this is of those up We can do that. She we have Opportunity city right in front of us. By supporting the public bank it will help by offering lower financial costs for local residents. Help with carries act monies in PPP alarms and more. All without raising taxes. I encourage you to

support a public bank of New Mexico and I thank you for allowing me time to speak. With you today and I love seeing all your faces even if it’s a photo Yeah I don’t know why they don’t turn their their- life picture on but that’s okay They’re all multi tasking you know it you know everybody’s multi tasking. Senator thank you for that we appreciate your support on that and comments Thank you so much and just learn to say yes when you get elected. I’ve been told that I’ve been told that just kidding. All right well good luck and be careful thank you so much I appreciate all of you thank you all. Okay thank you Thank you very- my name is Dan Mayfield and- my videos off right now it looks like but I am the vice president for government affairs at the credit union association and I wanna thank you honorable mayor city council and committee members for allowing us to speak today. I came to this the credit union side of things and we realize that a public bank Like a public bank it takes deposits and then invest them in loans but instead of making profits its motive a public bank will help cities like Las Cruces. In New Mexico small businesses with loans and lots of other programs to help. I would make a few points about the benefits of the public bank of the state of New Mexico first of all will not run the public. Republic bank will be governed by a qualified citizens board of directors managed by professional bankers in the public bank of course would be regulated. Just like any other public just like any other charter bank would you follow the same exact kind of regulation state and federal The any community bank or credit union or community already falls. In the public bank we work in partnership with financial institutions like credit unions and community banks and even your local CBS ayes to help reduce costs. And increasing attract new members. The lows would be a- by those local banks or credit unions giving them. New customers. It was a be with this partnership model credit unions and community banks will increase their lending capacity Loan programs be decimated to address public benefit targets of the bank’s legislature identify such as jobs public improvement energy green energy projects on the border whatever the board of directors in the legislature thanks and the public bank will act as a partner with local lenders so it shares the risk on those loans isn’t as defined in that loan program. It’s a great way for community banks and credit unions to really serve there could their communities on the ground using their local intelligence and I want to ask of mayor pro tem emeritus Sharon Thomas who is on the line with us she has a- she has something to say as well. Share article join us. Thank you this is John council record- and I also. Do not have video on yes So we can hear you okay good afternoon mayor and councillors- as I said this is- start my video just a minute There you go okay so good afternoon mayor and councilors assists Aaron Thomas for the record I’ve been working with the- on the public bank project with the alliance for local economic prosperity for a couple of years now. And the group has done important research in the public lands you know I was one everything to be research someone for us by the amount of research that down in the mine of knowledge they have. And the number of bankers that are involved in this work. And they also have been out across the state- getting support from many different entities. Online carry I think our state and our community can benefit from having the New Mexico public bank. I’m currently on the Las Cruces economic recovery board and also on to local workforce development boards. And you know I’ve seen a lot of good work done recently by those two groups and it’s very encouraging but we still need to do more. To support our local economy and small businesses as well as the workforce development programs in our program which you well no mayor can censure on workforce board as well. The New Mexico State Bank in partnership with local banks and credit unions could support small businesses and local entrepreneurs to local lending programs for example the arrowhead center at MSU there are many entrepreneurs there who with. A little increased funding to take their businesses much further and that’s something a State Bank could support. And then they’re all the businesses on the border which is one of the biggest economic generators in the state the little extra push those businesses can grow

exponentially and provide many more jobs for our region. The bank of North office of well established model it provides loans for agriculture producers and buyers for entrepreneurs and for many other local projects across the state of North Dakota. Mr Hammond pointed out The New Mexico public bank could help fund economic development and workforce programs that we desperately need here in Las Cruces on the border and across the state. As a former city councilor and mayor pro tem I also know that we need to bring resources to are dying urban center. To begin with Alfa sale insalata quarters and the surrounding neighborhoods a public bank has the potential to bring substantial change to Las Cruces by supporting redevelopment in those areas as well as providing support for several other proposed projects. In our city I’m asking that you support this initiative. Thank you. Thank you. Finally the alliance for local economic prosperity request the Las Cruces City Council takes up a resolution to support the public banking act that is sponsored y senator Jeff Stein board and requesting copies of that resolution or something the governor the Senate pro tem and speaker of the house and we really appreciate your time today and consideration of the public banking enacted in Mexico thank you very much the staff request yeah thank you Dan. Well what I what I believe was I think Dr Ericsson was gonna talk also and then- will open up for questions if that’s okay that’s right I had some comments if I could get my video and appreciated. Thank you- so as many of you know I’m Chris Ericsson a professor in in this you have been there for about thirty five years I’ve been there long that they get around after thirty five years at this point- and- I want to do say though that I’m not speaking as a representative an issue per se these are my own personal comments- and thoughts as far as I know in the may issue has no position on Public banking. Of the reason why I asked- to be able to be included on that in can you see my screen. Is that chefs are we can’t say that. We have seen in Mexico States- local. Just kidding. I was given your- the- the reason I asked to speak here and I want to thank my- soon to be a city councilor who Arranges for me after doing that. Is because- few years ago seven years ago in fact I was asked to be a consultant to the city of Santa Fe where I Worked on report on having a public bank for the city of Santa Fe. And I want to share some of the conclusions I came of that now. That report was I would say Luke. On public banking- not not dead set against it but also not- full square behind it. And the reason for that of course is that a public bank is- as envisioned by its its proponents of the some material I’ve readthe that they’ve made public in that I’ve seen other places. Is as a development banking tend to promote economic development in New Mexico. Develop the basics are publicly funded banks aimed at promoting public interest and there are many many examples of which IMF World Bank. Savings and loans are factor public banks they were established for a public mission which was to promote have homeownership There many many examples. And develop bank in be an effective vehicle for accurate. If Prof will prior. Don’t have access to fun- socially desirable property- projects around for fun Prof also requires subsidies you undertaken for development bank is more efficient to the error in the new strain. Then alternative arrangements and I’d argue that it’s hard pressed to say the public bank would achieve any of those goals and current environment not that they can but this character it we need to carefully think through whether they will do that. So for example here’s a display that shows the reserves held by banks at the federal reserve right now these are reserves are available to landed a right now if you’ll since- over I don’t currently is over three trillion dollars in excess reserves are available. They can be let there is plenty of capital out there for borrowing if you or if you have a worthwhile project this profitable you can borrow from a bank if that’s what yo want that one yeah the problem is not. On that there’s a shortage of funding the problem is that there’s a shortage of profitable- projects. To fun In so there also point out or many other programs in New Mexico and I try to figure out a way to display this it would

be get the point across it’s and it is not any particular project is particular- programs check the better worse another one what this does is it shows you that there are many programs in New Mexico their aim to provide funding to small businesses are having- the- that that that need funding are able to access that phone from- traditional banks. In this these are these these exist currently. So there’s plenty of funding for banks and the shortages of available in the shortage is of available profitable lending opportunities not the ability of the problem is that banks can’t find customers and they want the land to it are willing to borrow. And- so to the extent of the public bank finances a profitable loan That is one last long as available to traditional lending facilities like a large bank people that several people mention that the- they’re concerned about large banks diverting funds from New Mexico to projects in other states region other countries. And that course that does happen- but if you if the public bank lands to a- our a project is profitable that’s one last project available for- traditional bank to lend to and they will simply take that funds and go to another state that went somewhere else. The net change in total landing will be close to zero maybe not exactly zero but close- the net change in lending it well let me go on here alternatively public banks could finance loans the socially desirable But not traditionally does- profitable loans and of course if you think back- de housing Savings loans with their initially established receive special tax benefits and need leading to one- in the mortgage market profitable and that’s the reason why savings loans went into the mortgage market was because they were receiving that tax subsidy. Of course this is historically it’s not so much true now. And it is very common that you set up. A base. To make subsidized loans The problem is that may that taxpayers have to pay for. And I’m not saying that that’s not a good thing to do it maybe is a good thing to dobut we have to keep our eyes open and serve as government institutions. If we’re landing to one if we’re making improper loans were not received a return on investment that we might get elsewhere And- a third potential Basil pulley basin might lower investment costs you next government units but I’ll point out and I’m sure the mayor and other city councils are aware That the local government investment pool which is run by the state treasurer’s office is available for local- in of for local government units to utilize and that’s a very low cost source of- I heard very low cost way to. Invest in so- just in conclusion then it’s not that I opposed the public bank it’s not that I think it’s a bad idea per se. Is that I don’t see the whole that it’s feeling. And it does represent a- it does represent a risk in the sense that it’s investing in a relatively and diversified for fully on the census landing only in New Mexico- especially compared to the state treasurer’s office- funds- which is- a very- secured. Lake and- vestment it could expose a local governance risk but if it’s done right it could be helpful I’m just saying it is not the panacea the people are are making it out to you. So with that arm- don’t think presentation on turn the Screen back over to you- C. I will stop share- doctors The X and thank for that you be in case if I council member or somebody has a asking you absolutely okay and passed Okay so let’s go ahead and go back to the their Angela we’re down and then the- second Mr may appreciate it and doctor X and thank you for doing the background research on some. Of this we’ve been talking a lot of these. All giants for interrupt can used your name again and the all star all the speakers you have to see. Your from just just your name again what will happen and that don’t work for organization represent Dan Mayfield I’m the vice president for government affairs for the credit union association here in Mexico. I was thank you very much Dr Ericsson for doing some research on this we’ve been talking about a lot of these issues. And your your right the federal reserve does have a lot of money to land right now. But we talked to local small business all the time who realize. They cannot get that

money local banks for one reason or another. A lot of it is regulatory cannot meet the- needs of their local communities and I just happens all across the nation. In when we talk about the federal reserve- those are not the kind of guaranteed loans the public bank we think we’ll be able to provide so those businesses now they could need a hundred thousand but the bank will lead them fifty thousand public bank would help cover that difference between those loans and make loans today they’re impossible because of the way banks ratios has to work- it would make those loans possible tomorrow but more importantly this keeps our money here in New Mexico and working for new Mexicans or today our money goes into a global bank and then it gets invested by global bank and we never see it again A public bank keeps that money here The New Mexico working for New Mexico and of course there are a million of those programs Dr Ericsson you pointed out we’ve been talking with representatives a lot of those the NSA all of the CDFI as you pointed out was our groups and community organizations that are doing incredible work here on the ground imagine what they could do if they had even more money to help those groups on the ground. Today they are- your limited by the- capital there capacity right. And if the public bank were able to provide works capital for them especially low cost capital. It would be huge for a lot of us and of course by saying that you also forget about all the other programs of the public thank you do. This is not just a small business lending program that we’re talking about doing. The bank of North Dakota the cherry Heflin’s mentioning. Senator temple analogous- they do some incredible lending for things that would help for example the businesses on the border- deep they landed people money. Out of state the by products from in state so imagine what could happen if in Addis the fire was lent money to buy new Mexico’s green chili. That would be huge and we can provide exports for more green chili. They’re all our loan programs that are designed specifically for headquarters for new companies to move to an area. And we were talking with Jerry Pacheco who runs the border authority the other day Jerry was very excited about some of those projects because- if he had just a little bit more capital To entice the headquarters to moved his area he would do it in a heartbeat. And those are the kinds of programs were talking about so we don’t want to limit we don’t want people to think that public thank is limited to only doing small business lending or only doing that kind of lending that you see on main street right. The bankers bank and this is not a us not something we talk about daily but in the credit union world we have we have a company called catalyst a credit union for credit unions the bankers world it’s easy I would just have Texas Mr. Fourteen thousand banks. Why are we why are our bags. Go to Texas. To get their cap. When they could go to. Fe to get their capital and use our local state money right. And so when we talk about this he doesn’t steal those loans from other local from local banks in the slightest in fact is designed As a banker’s bank to help them. In this is how I came to this from the credit union side of things as we realize that with access to more capital we can help more of our members get more capital on the ground Especially the small business lending members that we have the ag lending members that we have on the on the large size And by having more access to capital more access to inexpensive capital it really helps us serve our members together it’s serve our members better and it would help the local community banks serve their customers better he does not compete with them there are no. There’s not an ATM on the corner there is not a branch anywhere this is simply a place for a bank to go to for more money for its customers already yeah I’ve never heard of banks say that they- have let all the money in the world. There is to lead so community of State Bank and help all those community Bankers dive in. Get more. All of the fault at this is ayes Directly address the I read. As and. Yes I just to speak your name and yeah and Zerrick- the read in again I respond because I directly address- yeah- I For first you men is low cost loans and if you have subsidies if you’re providing subsidies there by low cost loans. That would be a you know it’s not tax subsidies is if is leaving interest on the table which is a form of subsidy we begin to you know. Seventy a lower interest rate that you would get otherwise- of course that is something that would make it

more accessible to businesses there would be businesses it would have. The availability of funds to fund projects that they would not otherwise be profit without lower interest rates. A second factor you mention in and I’m not saying that’s something you don’t wanna do it may very well be something wanted. The second is the that you mentioned- the tracking. A headquarters to the community again there’s lots of reasons why you want to attract headquarters and I agree. If you want to subsidize loans to attract headquarters to the- area. That would be a reason for establishing this kind of the bank I’m not saying it wouldn’t be. Armed what I am saying is that there are eyes open and. Those kind of subsidies cost money. I in- in if do you do we want to do that As as as a state it’s a it’s not a it’s not a no brainer I don’t think I think it’s something needs to be thought through carefully. And the final thing I want to mention just very quickly is that you mentioned that banks- that national banks take money out of the state never put it back in. You guys with my mortgages through. Is through US bank my mortgage and my house is to US bank and that’s a very large National Bank. And I think there are many people who get loans through. These national banks these these large national banks. And aye aye aye again. Hi I think it’s- counterproductive to say that we’re trying to isolate things for our state and we don’t want a trade of other states and we don’t want to have our money go elsewhere but we do want their money to come here and then one final thing I want to say is if you look at the bank of. South Dakota if you look at that bank you’ll notice that- it’s landing is very similar to traditional banks lend it is a large successful may it is been very successful over a hundred years but is very introduce is very similar to- the calendar that a normal that that typical bank would make. So many now think thank you for the time there so let me do this let me just ask you both you gentlemen some questions and then maybe the council consignment I think they may be interested in some of things I may ask you so let me just ask you this these instructors and I think you said you worked on Santa Fe do you know which actual banks New Mexico banks that- that. The state treasurer keep the money in. I do know the actual basis treasurer keep some money and here in Dona ana county here that we bank with- that the county banks of some local with. Local banks- on the- any any and you know those local banks and bank a local bank you’re required to keep but that there is. Required to keep counter funds. Of to make sure the deposit safe- and- I don’t know if the- if the- a public bank would required to do that or not it would depend on how the law is written- but- what no I’m just. Trying to get at which which you know because there’s not that many state banks. And make thirty four citizens bank first American bank. Einer bank- western commerce bank there’s just a handful and so I’m thinking that all these. And now the other question for you Mayfield is were you. Expecting the state treasurer to remove all their investments or just the cash that they- that they keep on hand because- I know they usually keep cash on hand lot with banks. That are there and sent. And so you’re- you’re you’re thinking they were just we’re just talking about the Cash only is that what you’re thinking. This yes mayor again day basically. And so thanks for on local banks for Mr depa Issue we are not record. That the state municipalities put there. Because it’s- state bank first of all I know there’s been some confusion to the past and- are and others in other states they do have municipal banks for cities- basically no city in New Mexico is large enough to support a public thank but the state. Would be- in the end the essential you right now today. Of the seven billion dollars in the state fund is put through. Wells Fargo and other large global banks. And they invest the money however they see fit. And we want to take fifty million dollars of those deposits and simply put that aside. And put them in the public bank. And it’s just deposits that already exist it’s taxpayer money that already existed is already paid. And then that that money itself makes more money and turned itself around. Just like a bank does anyway and it makes money off of low pressure okay so you. Know you had an amount that’s. Really what I was getting and I don’t. It is status to I guess excited this stuff Mr mayor. From the state- based. Into the that will be

going to a global review Called out put it in the state Bank and the fifty dollar capital. From the service tax permanent fund so I want to use a couple examples and I believe that the community bank I mean this the estate bank can I say community is because I think that. In my discussion with- miss all of then a while back I after listening to them and I’ve talked with him that links twice and so I you know I finally understood more because like you said I mean I’m actually it looks ike. We’re trying to support a bank that’s going to be competing against our local banks here like citizens and first met and they’re not- and so- you’re at doctor Erickson said that. The bank in North Dakota I think it does take some traditional loan so you’re okay if our language says we do not support this This the bank taking. Local loans I mean it’s just meant to be more of a partnership but let me explain this to my colleagues if they were aware of this but so some banks list take a small bank here in town- let’s see you’re trying to do a two million dollar apartment complex and- maybe their lending limit as one point five million. So but but you’re good customer of theirs and so they’ll partner with another local bank and what you’re saying basically this is community bank and they’ll come in to come up with better half a million in there under probably landed a little bit cheaper rate. Because they’re they’re set up their business model is such that they’re not there to try to make so much profit is more of a nonprofit just trying to keep that investments here that’s number one you agree with that. Yes I do Dr Harrison you agree with that. Well it certainly it. The answer is yes although I will mention that there Linnean lower rate that that’s approval of a taxpayer subsidy because you’re earning less return on your on your deposits. Okay okay no I got you and then the other thing is sometimes new businesses new start ups it’s Very difficult for them to even difficult against. Your first year and does. They want to see some. Record and so I’m under That the king. That there. The state bank. Will be really more Likely to land and say and new bank a new wherever we this well as far or order yes some other local by is that your own Is that my understanding Mr Mayfield and doctors. I’m at and I’m so I think the details of what’s being proposed or are different in different places- and so I can see exactly what the proposal is in the state let that’s in the proposed legislation actually see the proposed legislation but that seems reasonable I have no reason to think that would be but again and I and I hate to the drum taking on additional risk of lending to us right that is taking on that risk but not accepting expected a higher return that’s the global of a subsidy to this is again. I’m not saying you shouldn’t do it I’m just saying you have your eyes open book okay let me call limits your question that occurs and when you say. So hello say you you get along with Wells Fargo and they and they offer 6% and then you get a along with this. State banking the offer 5% but to the bank they have their certain there’s certain amount that they’re going to they’re they’re gonna need to continue operation the only difference in the interest is once more of a for profit and the other one really isn’t a for profit is more a nonprofit that’s why you know I know and I’ll say this and you know Dan is here that’s why usually not always credit unions have a little bit higher interest rate that they can pay and a little bit lower interest rate when it comes to doing loans that traditional banks Usually and so that I. I see that really this state eight almost. Being like a huge. Huge credit union for the whole state sort of. And because they’re just the only focus on certain. Certain areas. In I’m sorry Mr mayor this is Angela may I jump in here just for a second I’m- thank you- Angela Merker all right- I want to name something that I here in the discussion related to the concept of subsidy- if we’re truly creating investing in our communities and creating more community well then yes they’re still an obligation to- maximize earnings for the- citizens of the state. At the same time it’s not the same as maximizing individual shareholder wealth in- in their private commercial banks and so I think there are you just want to raise the- investment opportunityin our communities and what do those additional business says and the additional well being of the

communities main floor Increased number of jobs and increase quality of life through the various infrastructure projects and also- thriving businesses so there’s a there is a return on investment that isn’t always going to be coming up in their earnings of the bank it’s going to end- it’s going to mean additional G. Archie that stadium and- and other of Revenue possibilities and also non monetary gains so I just wanted name that here in the conversation. Thank you- I- I agree that a hundred for the is a public bank if we go into this of our eyes open and recognize that we’re that we’re at cheap seeking other goals other than maximizing return the taxpayer on every dollar invested like you would if you’re doing for private bank I’m game for that what I’m saying is report direct you nice that this is that we are doing it did a public bank is serving purposes other than Just making a profit in is it the taxpayers shouldbe aware that and we’re not giving any hidden subsidy by calling the public bank. Rather than some other kind of program that would be explicitly funded Through action by the city council action by the legislature that’s all I’m saying. Let me clarify what might and might what I was gonna ask you a doctor’s and Smithfield and they’ll go to council sort. Of getting back to the example of. Saying Wells Fargo doing 6% loan and this bank. Upstate been doing 5% loan. My question is. That there is the cost of funds that both will encourage people to the Wells Fargo in the queue and State Bank. The benefit. Is going to go to the land to the person’s receiving a loan. And I guess my question is that additional 1% that the bank of the west Fargo’s charging it doesn’t come back to the state in Mexico it goes to various other people whether it’s the investors other. Shareholders because that’s a that’s a corporate you know large banks that’s were. I don’t seem to get and then the second thing is I would think that this the bank would be regulated just like any other banks other their rquired have so many certain financial ratios. So that if it gets below a certain level and the state that say you know what. We’re gonna do some. Operating in a way I think those are the same. I think that. That the public has as well. So anyways we’ll get back to that the lie I finally have one council member has questions so- Councilor sort Okay thank you Mr mayor. I’m unless the other present and any other presenters has something more sale by weight to your don. I appreciate your discussion today quite a bit well good points to be brought out of by hi everyone mayor and so forth. I’m so. I just want to say that- I got involved in this cut couple years ago- and- when I was brought up I thought- that I. It’s quite familiar with me I lived right next door to North Dakota for twenty three years and all my news came from North Dakota and oftentimes they talk about their State Bank and I don’t recall anything negative about State Bank. Estoppel I thought it was a good idea when I learned how it works. Still- I if you recall I talked about this last year twenty nineteen- and in that process I sent a letter to- the sun news- not bad act explaining what a lot about- public State Bank that’s what I like to call it. On also I wrote a letter to the governor The Lankershim to correct to help get hers support on. When I heard about exporting products it was just a week or so ago I was talking to a business. Are in fact it was last week I step- you’re you’re producing this product year have you explored possibly exporting it to other parts of the country. Or are some also other place nay they happen to say now but I thought this was something that they should try to do and perhaps a in some money from the state a State Bank like this would help them do that it as you explaining Mr ray feel. On so I. I think I have a question. For dockyards and- with all the things that you explained I’m- can you explain how the bank of North Dakota has been so successful

for all these years because Send and recessions a little easier in North Dakota that other states do- say Arnaiz hit as hard as the rest the country at a claim the state public bank there is the one that helps them do that can you XXL’s of North Dakota. Well- Hey so my understanding is that the that the State Bank up there does intervene the economy the house without the state is a cycle and I’m and if I members story correctly there was and national natural disaster. They were instrumental in- funding people’s recovery from early on- and all those things are important and useful things to do- I would but the issue is One are we have institutions of course some place for doing that now better than we did when this a hundred years ago when the bank was first established. And then secondly- I think that we need to remember that when the State Bank of North Dakota did that They were engaging in a at least a quasi governmental activity of stabilize the economy. And and that’s fine that’s in a private bank will do hat. That’s what you need the federal reserve that’s why you need institutions like that. And if that’s what you want to deal with the State Bank at that with this public bank. Just I think people need to be honest about that’s all I’m saying that is not it is not a free ride it is it comes of cost. Sharing eight E. that is that the goals you trying to achieve can be achieved more effectively public bank Although it’s not completely clear to me that that that that’s true I need convincing on that the public bank is the best way to achieve these areas goals. I see- thank you I appreciate that- so. That I think all I have right now Mr mayor. It looks like Councilor Abeyta-Stuve the has a comment or question. Yes thank you mayor and thank you. Angela tan and Dr thanks. For joining us today and- at mayor pro tem emeritus Thomas- I do have a couple questions and really it’s to whoever might to answer- you know this is not an area I was super familiar but so I was doing research- I was going to do I was just looking. And benefits- kind of the concerns that were raised- and one of the biggest issues that kind of came about was that of oversight. And seeing who has do you minimize the risk of-ow- having any store of and often times it was at labeled as political or governmental your parents- for rescue loans- and so what does this- legislation How does the address those issues. Yes. Thank you- Councilor of for that question Angela Merker- in order we had a banking committee that worked about nine months that included U. N. M. finance professor Reddit union and a former community bank leadrship and others from the financial industry. And we developed a recommendation for a governance structure that. Includes participation of professional organizations and selecting- nominees for the of board positions a board that would have staggered terms that would include of people with experience in the banking industry but also in community development and so but they would all be financially savvy so there’s- and those selections would be made from- senators. Representatives and to the governor but if they would be initially vetted through professional organizations with criteria- designated and also they would select the CEO and the rest of the team the compliance officers regulatory people of a loan officers that would be a part of the operational staff of the bank- so. All with of banking experience proven banking experience and also of with some sensitivity to-

community engage or- civic the civic stewardship so needs are not going to be bankers that Ultimately want to work on Wall Street they they’re not going to make the megabucks and the ability millions of dollars of- bonuses but they are going to be people who have quality backgrounds and bring together expertise there. So we think our recommendation for both operational staff staffing and also the board membership. Well build- some pretty strong walls for- oversight and protection in addition to the whole chartering process that will definitely- meet regulatory requirements with FDIC and also set the stage for access to the federal reserve for overnight deposits and things like that are. So we spent a lot of time discussing- those different guard rails because we know what. Scares me we know that in the history of New Mexico that’s that’s been an issue about how to how to maintain the trust and the- support of the public in those kinds of institutions so. I think we’ve we’ve given a pretty extensive look at that. Here and- as those discussions-are continuing- my tape again- just that fact of looking into equity of making sure that all regions of the state are taking into account especially if- we’re looking into agriculture every. Need that’s definitely a factor India- is related to that- that part of the board population and what is their experience and community development- of the rural areas we especially want to make sure are included this is not just for. The larger cities it’s how do we bring equity in the participation on the board Here I’m and as we look at this I know that with any bank- public private and there’s always the risk associated with everything I’m and my we’ve had a very good example with- South Dakota for their part. Thank- what are some of them are the risks that we have to look into and how well have other banks- died and- are we addressing any of the potential failures others have had- are requesting the thousand changing anything In this legislation well Angela murdered here I think that- the way that the board has been proposed board has been structured is one way of addressing what have been witnesses before if I public Was attempted and didn’t work it tended to be more weighted toward- moving- of having more emphasis on the political operation rather than their actual- what’s the real Banking operation and not having a clear mission and vision for the bank- in addition I would say that- The are. Excuse me I don’t know where the fraud came for in addition we have a number of states who are. We’re where we have are talking to each other and looking at- what are the mistakes of the past and saying how can we strengthen this and make it better state by state California now has legislation that is enabling both municipal and regional public banks They’re a very large state so they don’t want to go with a full state banking unless they do an infrastructure bank which they are talking about Massachusetts is going with an infrastructure bank. The New Jersey is about to approve their public bank. And there is a consortium of eighteen states in the northeast and Midwest That. Recently had- dept think tank. Working with those States recently completed a report and made a recommendationthat each of the eighteen states- login to the study of a State Bank for each of their states. To bring focus efficiency and effectiveness to their- to their financial systems because of the- drainage of funds through to the global banks especially since the recession

A lot of interest has built up since oh seven await because of the vulnerability that’s been highlighted in the global banks and so- the public bank movement has caught fire- with an attempt to force states to get more control and be able to manage and focus there. Not only their spending but also their investments for the betterment of the state itself rather than for that commercial banks so. There are about twenty three to twenty five states now that are in different stages so- either studying or moving the legislation forward for that so. The mistakes have been learned and they’ve been shared and those mistakes have been but we’re attempting to turn those into strengths Councilor for the enhancement of the current legislation coming out Thank Councilor Abeyta-Stuve thank you for your question Dan Mayfield here and- your question about risk- in our pool form a we estimate that the- budgeting in our pro forma 42% loan losses that seems to be. What public banks experience and then we look at this to in terms of not in terms of risk but in terms of building resilience. In across New Mexico we have these peaks and valleys of economic fortunes right. And a public bank what it does is lowers that risk he keeps it Basically left and build resiliency into the economies of the world we do have a downturn we have support to push that back up. In I think rather than looking at this in terms of how much rest doesn’t provide I look at this in terms of how much resiliency and how much does a support economy as a whole. So thank you very much Your time and thank you mayor those are my questions at this time. You council Vasquez. You mayor- thank you for those great questions Councilor Abeyta-Stuve use well- freesheet the insight gained their and for all of our presenters- thank you I think I don’t have too many questions are mostly just and one office and comments- I think- you know we had a conversation just recently about payday lending And how toxic the payday lending industry is charter communities across. The cross the state but in particular in Las Cruces where we know we have- kind of predatory loan companies are really concentrating on specific areas of our city and- obviously taking a lot of money- out of people’s pockets that probably can’t afford traditional Lending products- and this is the only way they have- to get by- items significantly different in the types of products and services that will be offered in that the public bank would not be a- perhaps a consumer facing entity like a like a regular bank but- I think in the in the macro view of our state economy. Making access to capital- easier for- specially low income folks at one do things like start a business or by home really helps our communities to start digging out of some of the economic- challenges that that we have that are that are really great and so- I love to see solutions proposed- specially like I said when we talk about. The problem of payday lenders- right we don’t just want to lower the interest rates of 36% we want to figure out ways to generate economic activity for communities that folks who don’t traditionally have access to credit. The way that that others. Who who are just you know are more wealthy were ordered have the opportunity to do it so I think this is a good start to coming up with that solution- I’m Really attracted to Jack the- yeah you know you don’t have that type of an- that really Driven by shareholder. In a way that- generates earnings for you know the top you know. 1% of an institution or CEOs and other folks are compensated greatly. That really drive some of the loan products that banks produce right because you have a lot of money to pay out to a lot of folks. On this type of institution and so. By not having that model lower interest rates- being able to takea little bit more risk Seems like a natural by product of something like this- similar to- council Abeyta-Stuve be of course questions about will who you know who runs this bank who’s on the board how do we make sure that. We also keep undue influnce out of a public institution like this. Our government is not immune to that kind of thing is as we all know- so that would be an important thing for me to consider in the selection process and how this bank is actually controlled if it were to be created- and then lastly-

that their resiliency. Of downturns right and be able to pump money into an economy Where and when banks are reluctant. To let or when credit is really low. You know this being kind of a lifeline for me. To be able to. You know access capital during economic downturns which you know we’re we’re we’re really kind of in a recession now but I expect more to be coming later- right I think they they cycle in and out of our of our economic system for various reasons and so. Are this could be a really useful thing for New Mexico to help dig itself out. Of moments of economic recession- by being able to pump some of those monies back into local economies- and so overall I think this is a beneficial I support this- I really haven’t talked too much into the actual legislation that’s proposed but on its merits I am supportive of it and so- because robin the comments I have for now but really appreciate all the different perspectives. Are doctors and. You get to see you as well thank you for. I don’t see plan that was. Here but making a see the whole picture I are you get it back in so I really appreciate you. Bringing that perspective glad to have you here. Thank you. Thank you Mayor pro tem. Thanks for your thanks to all of you for being here- Angela Dan and Sharon Welcome Dr Ericsson I’m just diappointed Dr Ericsson made- you know he rap force- the bank that the county is now under and after a couple of years ago I think mayor right two or three years The City moved into- more of a localized pain- efforts from a from- a group that felt very strongly that we should not be banking with Wells Fargo we to fell. We should be banking- and there and but I remembered the difficulty- in- creating that R. F. P. and capacity even within this City of Las Cruces and- being able to find a bank that had right the necessary- capability that we were that we were looking for. So my question is what this public bank a system that process and how would that. How would that- be if we decide I mean our municipalities- included in the in this process I wondered if You have been having conversations with the municipal league- that that that that the county organization and what their- thoughts are. Related to that Mayor Pro Tour Gandhara thank you this is Dan Mayfield and- the we were looking at this legislation is that it would not. It would not interfere with municipal deposits and how their deposit today in your local banks I’m back it’s great to see a municipality like Las Cruces stuff off and say we want to use the local banks for deposits that’s amazing. At the state level it imply takes this tiny tiny portion of the state’s. Deposits that are going to a global by now it takes that little tiny bit and just put it into something else it’s basically. The can be used across the state. Work for me is validated if you want to do a project so you didn’t want to do a bonding you want to do something alone. With a loan instead. You can do that through the state back but not even to the State Bank what to keep what we keep. Forgetting and this is of the State Bank with Parker with local banks So with your local bank I don’t know which institution we’re using right now but if your local bank why the land Las Cruces more money. For you say you do animal shelter- but they couldn’t come up with it because it’s just a smaller local bank. They can go to the State Bank and get more in a low. Cost capital so it’s- earners with local banks already using it doesn’t. Them it doesn’t take those away it doesn’t do. It doesn’t provide on the ground lending it uses your local bank already Because your loan officers in your community know what your community needs a loan officer and tells those with house these rate. Loan officer in Deming those with the needed Deming and- that’s important that’s key that’s one way that it keeps everything local working better locally so if your local bank in Las Cruces you for your deposits in now says Hey. We could use extra help the State Bank. Could helping guarantee that low. I can speak up mayor pro tem Angela murdered- another point though is that- the deposits

from municipalities were not seeing as are going into the state public bank at this point. That is a model that bank of North Dakota does use we do see. Incremental increase of state revenues going into the State Bank beyond that first fifty eight million. And in doing an increasing- deposit there so that it ultimately becomes the primary depository And decreasing those deposits and the global banks- the for the primary one of which is Wells Fargo right now. But- that doesn’t mean that. There couldn’t be partnering there with. Both the community banks and credit unions holding some of the- deposits of the municipalities and counties and then some of that being deposited in the State Bank it’s it really is as Dan mentioned. Dependent on what the capacity is for the holding sub those particular banks and what their collateral list for You know holding the larger amounts which it sounds like you went through that process of discerning that when you were moving the funds. We did and it was pretty tough and found out very quickly that there were very few banks that have that capacity and so. If I could put a page of the public banking to help to build that capacity within. Our communities initially right so that we continue and I’m all for both I. Am supportive of this for sure right I would hate prior funds are meant I hater money leaving right Wall Street gets to sort of dictate where that is and when you listen to- the finance committees and others right speaking to. How they’re investing their money it’s always outside of New Mexico in in- and so we really need very interested in building community well. Insuring that- that it’s equitable that we close the gaps- and you know the wage gap women. And men right and really looking at the board and that it looks like our our community- currently and. And so- again very- very interested in this- again I came in like- comes restore and conserve lotus after a conversation with the lane in Santa Fe but we could convene that feels like many moons ago- he was very interested in and quickly tried to build. You know my education capacity related to this I’m the other thing is how are you preparing in the event it passes. On to capture if you will- if the marijuana bill passes Recreational marijuana would you. I mean I’m not sure how how that is going to work and what the bills suggests for that particular point but I’m I’m wondering if there’s conversations- already in place. Related so. Sorry Council I’m mayor pro tem gandharam this is Dan Mayfield and because this is not a retail bank you wouldn’t where we get our act in that whole cannabis world right it would take business deposits at all so it’s just taking state money money back out to banks the bankers bank so it wouldn’t really interact in that business the world however right now there are a number of credit unions New Mexico in a couple of community banks that are already banking cannabis funds. And they would love to be able to support more dispensaries more hemp growers more of those their legal businesses here in the state we would love the support with those businesses because they are working onthat weird quasi legal kind of space right it makes those loans for traditional banks much more tough to do. And so with State Bank support it with the State Bank guarantee for that loan you could close the gap and help the dispensaries and help the growers help the transporters help everybody in that world grow but it would not. Directly do you take any Cannabis related the pots because this a retail bank. Got it got it thank you for your clothes the- be sure. Thanks for the questions- their potential just a couple things now. On the on the flip side- most likely we are not going to see an actual state bank here in our city. Is most likely going to be in Santa Fe Because that’s just where they that’s where they if this is gonna be state money it’s just gonna be probably one bank. In the state. Well you put your hands up down are you suggesting that we could have won here Las Cruces. Well it

would be one big Office Mr mayor. Be anyway right now They are Albuquerque I mean let’s be candid here I just well I just there’s no way we’re going to use it for our city bank. For art city Las Cruces bank mayor pro tem the justice system just that’s the impossibility. Is it just doesn’t work like that we need to have. We need to have it locally the bylaws and that’s something that I don’t think we’re looking to do. But the second thing is I want. To talk about is- twenty one. Thing where I see there’s been a- as- week. With for. Where we used we tap into the tell for finally giving ten percent. We charging 3% interest or so. Now the State Bank hopefully will be able to do that. And then we wouldn’t have to tap into those for fun or we can do another we have another project. But I just want the council to know That this is this bank most likely will not sit in Las Cruces I I’d be willing to Venture to say ninety nine point 9% it’s not gonna be here. You can be an Albuquerque but most likely Saturday. On vision. I’m thinking- and you Ears you. In then as a last tell you bit because if it looks like. It looks like we’re going to start moving to try to take and other accounts from from municipalities than- I guess I need to have a little more specific language. Is the way it was told me. I’m okay with that but if we start deviating from that and we start you know expanding into To the to now compete against local community banks and banks. There’s no way I’m going to support this. No matter- this is Angela murdered- I don’t mean to. Imply that that’s the goal- dot I just mentioned that the that’s a model that North Dakota bank of North Dakota is using. And- and what I. Really wanted to emphasize there was the incremental increase of does States revenues into the bank and- right there there is not an exclusion of other Governmental bodies why and when to do that but that is far from- any kind of goal or focus that. Anyone is placing on the bank it’s really about state revenues and- more effective use of state funds. Okay now did you mention fifty million or something like that down here fifteen million somewhere in nine us to start this state house- on any given day has three to seven billion dollars Deposited in the various global banks there are about seven to eight of them that those funds are held down and we’re talking about of fifty million of that as deposits and then leveraging that up to four hundred fifty two of five hundred million for of partnership loans of with the credit unions and community banks. As we start. I didn’t realize it had that much cash available accessible and I couldn’t find that when I when I when I look that up. I found less than a billion- still quite a bit of money but that in that and see what you what you with They Might your talk- mayor. Initial market this- that’s in from that’s come directly from the treasurer’s office about their average holdings. Okay. Mayor pro tem Jim no question. I didn’t Finish them the question my question the are you yeah thank you I’m and I wanted to ask- in mayor you alluded to some- having the location be in Santa Fe not in Las Cruces and typically we all know we’ve been talking a lot about being the second largest city and county and- working collaboratively along all up and down the county right more strength in numbers and- I don’t know about you and maybe you all don’t know this because you don’t live here- with the exception o Dr Ericsson is that were always. Always feeling like left behind down south so what do you know how can I be rest assured that that kind of funding is going to be disseminated in market community specifically especially when we have a 24% and probably a little higher now poverty rate and just all those gaps in in equity- and wage. Yeah don’t get me wrong I love to have it here Las Cruces but I’m just thinking realistically or finance office. Okay let’s put it in the list but and then the- in

the resolution. Yeah and- just say this resolution only works if the bill says it’s for Las Cruces if it doesn’t. It doesn’t and then and then it’s a no vote. I not okay what what allowances or you know can you can you share with us and in regards to- held that in terms of equity I mean what we fight for everything we get right- we feel kind of forgotten and we have to remind people all the time that we exist over here Thank you. I’m sorry- thank you very much and that’s one of the reasons why we brought- carry handle with this today and just I board the sponsor is a senator in your neck of the woods too and they understand these issues and they absolutely understand the poverty in your neighborhood the understand what is important on the border you know- if. Why don’t we include something about G. year he’s actually texting me right now saying we could include something requiring geographic diversity of opportunity and we saw a huge opportunity were talking to Richard the Czecho a jury was seeing so many of the economic development programs that they could work the code those today that we basically just steal all their ideas and make it work for to Mexico right. Sure to check out was seeing that and he’s certainly a priority I think for legislators and for the board that would be created for this public back right- and then you see the high growth high poverty communities it’s certainly need all the help certainly all the small business support they can get- and then we see the rural communities where especially there are farmers who are having trouble getting their chattel loans farmers are having issues with their- equipment loans things like that that’s where the public bag fills in all the gaps that are not being filled in today And I think just by nature of being a high growth high poverty high need in high potential area Las Cruces would see a lot of the benefits from this you know especially with guys like church the Czecho showing us every day how much is work is doing to support border you know and then of course because this all partners with your local banks it doesn’t steal the loads from your local banks of partners with. So they’re making the loans they’re making those loan payments down the street the bridge down the street from you they’re not driving to Santa Fe to make those payments right so all of your local financial institutions. Grow as well Under thank you. It the mayor So anybody else. All right well thank you very everyone for your- but yes Barmouth yes This is Barbara deli on- let me just I can’t- raise my hands and signed the- opposed to the meeting but I just wanted to- remind you all that the resolution for legislative priorities it’s going to be coming back to council has one item and it refers back to a State Bank. Previously we have passed a resolution to request that the state provide funding for a feasibility study for State Bank so if we want to- amend. That resolution we can do so when it comes back to council so that we can then craft something more specific to- your needs based on the presentation in the direction that you would like to go and so I just wanted to let you in on that. Okay so thank you Barbara so Angela did they not find the money for a feasibility study. I thought they did something the legislature did something Angela Merker no merit the usability study wasn’t done so we took it up on our own and we did the- we did the banking report or of the business plan for a- public bank. And worked with you I name faculty and- and- other. Leaders of credit unions and former community bankers- here in the state along with some other people with investment background so And developed over five year performance so we’re working on set that out and- this. In the twenty twenty one session will be- asking for the legislation that actually enables the formation of the bank. We the memorial house in the house but it didn’t it ran out of time on the floor if you recall the two thousand nineteen session have that backlog of legislation and- and they were dropping some of the memorials. To give more time just some of the

actual legislation during that time. Okay so them okay so- the memorial didn’t have passed the house but not the Senate so you’re saying correct it got- it had a tie vote in the Senate rules committee and- did passed committee and the house and just didn’t get for time. So what are you looking for from this council now what a different resolution or what what specifically are you looking for the same resolution that we passed before are different. No I think that we’ve submitted a template for a different resolution that well endorsed the formation of a state public bank. To be located in Las Cruces. If you choose to add that that is definitely your choice. For Las Cruces use only and will put I’m able to I mean I to question. Thank you mayor more on- Mr Leon’s comment I think we would be really effective for us is that those resolutions that we do passed that staff- you know- works through and making sure that it is shepherding those bills if you will not do not I am not saying necessarily like what Larry Hernandez but someone needs to pay attention in the City about where they go where do they stop who voted for what so that then they’re and for being council so that we can inform our constituency- you know what’s happening- moving forward it’s really difficult to manage all of what I what we’re doing here. But also what’s going on up there someone needs to be shepherding that- and to include lorry around of course but- eight I would like more detail- as it goes into which committee and- who voted on it- and- we don’t ever really see the bill in its final stages and the analysis that’s being made we should get To see that it’s public record Thank mayor pro tem yes we do- take that into account when we develop the reporting to you after the legislative session as you mentioned working with Larry her around so we can have our policy analysts follow up with the information that you require with respect to the priorities that we’re putting forward for the state. Thank you for the input. Okay you- Councilor Flores and then council Vasquez. Thank you mayor Gandara thank you- this Burkert and Mr automate field and- and Dr Ericsson or your home for your presentation your viewpoints- doctor action- just I just received a- email from- a constituent who has a local business so I just if I may Mister mayor- just read it- just read part of it. Hello although my own businesses plarge affairs points out loans for some projects we never really got traction on those though either because national banks weren’t interested or because they were beyond the scope of a local credit union having another option for local banks to turn to for capital which would enable them to finance more projects- and there was a whole analysis before that that that was the upshot of his attacks and I think that That’s what I’m Mr Mayfield has been emphasizing appealing that Gap and- hardly with the mayor pro tem’s- ask of be guarding Las Cruces not being what behind not being left behind right I call it I endearingly color the **** up part of the state. Of anything south of bylaw banning I guess some of the- we would. Moving south of Albuquerque maybe accept their role itself of the land. I was gonna say something of Sapporo right back. Police of the land Milan battling. Did you know that means Bethlehem in Spanish I didn’t yes what little little town of Bethlehem are billing but- anyway I just I do support- I do support this up but- I just the- you so there’s no- no bank per se that people go to a service structure of

their employees- how and I don’t want to get into the weeds too much but somehow it almost sounds like it’s going to be. Up in the clouds somewhere so can either one of you explain that. I’m sorry Sir what was your question again My question is whether there’s going to be a brick and mortar building a facility and- whether I know that you think Mr mayor that it’s going to be in a house in Santa Fe. Our new resolution this is Las Cruces Yeah that’s true that’s true but- I need to yeah I wouldn’t I would like to know how this is going to work in terms of The New Yorker that. The human factors are there going to be employees discover benefits not regard also point brought up by my constituents Mr Michael Harris Mike white. Who’s on our economic recovery board. And- to has a lot of insight and- very hearing intelligent Pennington. Yeah the question Mr Mayfield and order Mr marker Thank thank you council Flores this is Dan Mayfield and- there will be a staff it actually is not a huge large staff but there would be a staff for their View director review board of directors the CEO and then the largest part of any bank. Is the- the regulatory side of it right in who deals with all the compliance issues and that’s something we take very very seriously in the proposal and something were we have to really pay a lot of attention to and that means all the loan officers and all the people who make sure that all the things- are. Federally legal state legal ethically legal all of those things right- there would be a staff there would be a building- we don’t imagine it being three hundred people but- it would it. Take enough people to make sure the loans happen you know- but not not a huge huge group of folks. And all those people all of their salaries- would come from the earnings of the bank itself they would not be state employees. Hello this is Melissa may I just add to that this is Melissa Pickett. Please I just wanted to add to that just to paint a visible for you so in essence the demand would come from all of the people Good demand would come from all of the people in Las Cruces in Dona ana county who needed the loan those folks let’s see the rural farmer who- got together with a number of other pecan growers. Wanted to put together a processing so that right now you’re probably aware the lot of the for the con processing goes to last The agenda data So let’s say for example of that the server load the conformers got together and said you know we reallywant to be able to process our kinds here. So they would in. Go to your local credit unions and community banks. And they would apply for their loan just like they would normally do. And this I’m a former banker by the way- so I spent a lot of years in the banking world and I have a lot of- understanding about what things can do. Within the boundaries of their own loan limitations. Of we saw many deals for example that were right on the edge a little bit out of the comfort level for a bank given. Given what our parameters were still in a case like that where did we go we went to an SBA or something like that. Without your farmers would go to their local credit unions for community banks and present their their planning their business plan. Ending the Community bank or credit union I would go to the public bank so in essence the public bank is. Not necessarily even knowing- to the borrower because the face is still with the community banks and credit unions. So hopefully that paints a little bit of the picture of how how the bank works so- the- the public bank itself the importance of it is that the bones will be in place with the fire walls with the transparency with the governance the public bank will be run by Pro by experienced bankers. And those are the folks holding the bones are the infrastructure. To enable the

access for the for the community banks and credit unions so access is an important point of all this which is why one of the reasons why bank of North Dakota has been so successful because- they are- the loans are much more accessible he gave out more PPP laws in anywhere in the country why. Because they had educated there community banks. As to what to do with the PPP loans so when the demand came in they were able to get those loans out so accessibility and ease is really important important I also just wanted to point out a real quickly that the bank of North Dakota. Their lone loss is a little under 2% which within industry standards is more than acceptable so I think that’s an important thing. To note and- I think that’s that’s all the- verification that I had to be helpful here thank you. Okay also for residence your question- you muted- there’s nothing thank you mayor and thank you Mr makeover thank you on this. Yeah okay thanks- Councilor Vasquez. Your arm so I think they’re gonna solution to the Santa Fe prop- so we built we build around house in Las Cruces and we call it- the roundhouse south. Right so we have alternating capitals every year. That we can have a legislative session and Jennifer in the next year we have one in Las Cruces- it’s a good economic development project for us and we get to build a better round house in the one in Santa Fe. And then we get the power of having people have to travel. But for five hours that the way we do a to the legislative session so We’ll put a purple resolution board for that- during our next council meeting- but seriously I think- to some of our I think council mayor pro tem grounded as questions about these resolutions that we’re about to pass or that we’re about to look at again as a council that we group together from prior- things that we supported. It the legislature. Because we don’t know I think the details and are not privy. Station that’s in development we are probably not going to be a specific I think in some of those resolutions as we weren’t passed in times past when we have actual bill numbers in a pre filed bills we could look at. Us so I think. It’s just not not there be any surprises since I was working on this required right now there’s just. The general principles I think of with the council supports when it pertains to these issues are what. Mostly it’s going to be listed in some of these resolutions of support- and I think this is a helpful conversation to have that we could include in that resolution that’s coming up to council term to some of the things that. Were discussed it seemed to be consensus amongst monks the council so I just wanted off of that information- so that. We know what we’re gonna be looking at here’s- thank you mayor okay well thank you. Okay well we’ll just let you get with staff and see what kind of proposal that the resolution if you would like for us to look at and perhaps make some changes. Okay okay well thank you very much everyone for your information and your discussion and thank you also very much thank you mayor. Much thank Councilor Vasquez in that resolution please include Las Cruces weather is much better in January centerset. Three point thanks. Thanks their own troops making really great some things if we did that. All right- so now we’re gonna go ahead and go to item three point two which is the ten import discussions did being a tax increment development districts. And looks like a doctor. Martinez and Dana no Sir will be Leading the soft. Yes good afternoon Mary. Reducing feedback here so if you all would you charter. The computers if you no speak in place. Good afternoon mayor and city council my name is Chris and I’m not gonna someday economic development director for City of Las Cruces- today’s presentation is an opportunity for us to have the debrief of the royal crossing hit. That was performed- but I do not Belser with strategic economics in partnership with Daniel Hernandez with projectile this was a request from city council back earlier this year when we

were discussing the royal crossing and this is an opportunity for us to learn about the pros and cons of. It in general and also specific to the royal crossing our proposal so with no further- do you I will pass it on to the now Belser with strategic economics who was the expert- doing the Peer review on this topic Thank you this is Tina Belcher was strategic economics and thank you to Dr Martinez for that introduction- I’m going to share my screen and- I’ll go through a power point with you some arising on. The unloads The the findings let’s see swimming. I’m sorry and in are you- did you- introduce yourself for you state your name I didn’t state my name but I’ll say it again and you know bills or was strategic economics and again- part of the team that was retained to do this. Sept okay I’m gonna share my screen- let’s see okay can you all see my screen yes great thank you I. Once again the I’m part of a team that was routine July of twenty twenty my colleague Daniel Daniel Hernandez couldn’t be with us this afternoon but because I did that. A majority of the work and actually wrote the memo that you all have seen I think they should are you just find the general is not available we are currently annual and I are currently working together with the city of Santa Fe and so were familiar with. The development context in New Mexico so that’s why we were brought in to do this work. We started in July by reviewing all the materials that have been submitted to the governing body dated July sixth twenty twenty it was a very large submission package. That included of a resolution- to move forward with that **** in addition to that we spoke extensively with city staff who were were very transparent helpful insuring with us Information with that work that they had done at central structure. We talked to Jonathan your county staff we- interviewed the chief administrative officer for the city of Albuquerque just to be able to get some perspective from. Of another city in New Mexico who is use to districts we talked to your- financial adviser from hilltop securities and finely- spent a lot of time reviewing the state’s enabling legislation. For the tax increment development districts so. Those are the steps we went through. On in terms of runs findings be found is that- tax increase. Of revenues this process are setting when you form a tax increment district you said set or- ace year is what it’s called so if you had created the district this year twenty twenty would have been your biggest year. And then the amount of property tax and are a gross receipts tax that that area is generating- would be frozen and everything at that level and below would be allocated to all the taxing entities as it has for work But any incremental increase in property tax and cheered she talks with then be re re distributed differently of with some with some percentage of that revenue going into the tax increment district- and this is the way tax increment works everywhere in the country you set the space year some states Tax are property tax increment of a few states like Colorado tax sales tax. The New Mexico’s gross receipts taxes and unusual form of taxation- I’m not aware of other states that use a gross receipts tax like this maybe others are participating in today’s call are- and so the way that your breasts wrote our receipts tax are calculated is. Also unique to New Mexico but this idea of capturing increments above the baseline and then. Reinvesting it in at towards a specific Spur reinvestment in places that are- experiencing. This investment were pledge so they’re really tied to trying to bring place is packed and they’re very focused on

infrastructure investments in most locales that used tax increment revenues- there is borrowing that goes on. This was one of the- issues that was being debated I think with respect to the road crossings chan- of and it is one of the proposals that the developer was making in your financing plan is that they would be borrowing against us should revenues this is again very common. Most states require about for proof to justify it establishing a tax increment district so you have to be able to make the case that if the revenues were not re direct re directed back into this area and we structure investments were made and the development would not occur. And then also most states provide very strict guidelines as to what uses can be paid. For using tax increment. No no matter. Tax increment district are by the way all of these districts are enabled by state legislation and in New Mexico- you have to kinds of tax increment financing districts and shades are- directed towards and initiated. By private developers they’re not Typically Nishida by cities so it’s important to recognize that tax increment funding and financing. Is used in different ways in New Mexico and a tax increment development district has its own very specific parameters- these two districts can be a powerful development incentive of for places that Have experienced of lower amounts or a lack of new capital investing in that area To districts in New Mexico ours is different we are focused on job creation not so much on light removal or even on community development so by community development. I mean a lot of the- unity benefits that are. In the legislation like affordable housing- Greek infrastructure- but the real focus of the legislation is how many jobs could we create- of the fund improvements are. Will everything that’s paid for through it should will eventually become a public assets and I think this is a really important thing to keep in mind it’s just flat have highlighted here- because it really plays into some of my findings from later on. The New Mexico legislation for the two districts is also very loosely structured compared to allowable uses- in other states up compared to what the- around what to what funds can be applied- and it also allows developers accused the developers that control over determining what projects Would be in the in the district- and there’s no Incentive I don’t know that it was an actual City incentive but in my reading of the legislation there is an implicit center incentive for developers to create- as larger districts as possible and when I say large I mean the cost of the size of the dollar amount of the cost- and that the developer would shift as many Potential cost into the judge’s strips so that it’s page the cost of I am not paying for those- comes out of public revenue as opposed to the developers running- and then as I mentioned before the legislation does not require Any community benefits to be provided it mentions in the statute certain certain benefits- and says they should be considered- armed so- when I read through the developers of financing plan they do mention these kinds of community benefits but obviously. They were not- project cost. In terms of the room crossings I looked at both the- and the ravenous I’m gonna start by talking about the costs. Of one of the key things that I observed was that the cost items that were included- some of them were clearly public assets and things that the that the public mood on so certain kinds of street improvements and I’m gonna I’m gonna go over the cost and the minutes more detail but I want to make this point that there are some gray areas in the legislation- that would give the city some flexibility- so road improvements to streets to access raise that ours are streets that the city already owns and would be improved through the gym districts

That’s a clear public- the US But then there are other there were other items in. The cost proposal that could fall into a gray area and- the three that I identified were working surface parking and structured parking Future parks of which in this Of contracts are not big parks like Abu Dhaka park near it they were small- returns or open spaces that were really amenities to the development project. And finally there was storm water retention. So in most development projects that have a suburban nature or like this project it does surface parking- those kinds of parking and- amenity facilities and even water retention are typically paid for by the developer they don’t become long term. Public facilities and- structured parking is- debatable but structured parking would have been a much longer term prospects so it’s not even clear that structured parking with fire. And then there are some public improvements of that were included in the districts as cherry trail system improvements and improvements to Apodaca park. That might potentially have been financed using less expensive approaches To and then would have also taken them out of the- should time so let’s move Jamari chart here and- these costs one of the issues is that- the final cost amount that the developer was defining the chicken was a bit of a moving targets- so this number that I’m showing you here. Is not the same dollar amount that you saw in the July six us of middle that came to the city council this was in our- of version of the financing plan to suit submitted. To the city in August. And what it what will note. Is not this system that was in cost us. Is operating and maintenance costs operating and maintenance costs for a two districts are allowable in New Mexico I might add that that is not usually allowed in other states this is the first time I’ve ever seen. Operating and maintenance costs allowed in a tax increment district- so again- you see here Samaritan drive behind your driver’s job news- the Solano drive your- interchange these are all public improvements- and then there are the- internal streets- and the trailer park system and some of these other- improvements. That are more in the gray area particularly service party parking and the structure parking garages and this list is in here just the way they were listed in the- financing plan of so. And these are the proposed development costs and what I was trying to show is that if you start to be- I think more critically about removing some of these costs you can start to pretty quickly reduce the amount of money- that would. Go into the tax increment district the reason why I suggest that really working to- Nero down list of. Year because this year these costs get paid off excuse me the lower th amount of- costs that you have- the less amount of tax increment you’re going to be your the project is gonna need to generate in terms in order to cover these costs- and- also could potentially. Of make the district more viable so if the district is includes a lot of these cost a for example structured parking that’s twenty one million dollars worth of it of cost and the districts can continue to collect money. Up to the forty eight point eight million dollars in for the entire time that the district is operating so- if the district doesn’t collect enough money to pay for the structure working- then. It could but it it could collect half of that that money is sitting in the districts bank account it’s not going to the city- but it also isn’t doing anything for the district- and- my understanding is that Albuquerque has had this issue where developers. I were that were that should board of can make a decision about who controls that money and it’s very difficult to reprogram money once it’s been programmed

if the two board does not want to do that. So again this having these large of the costs of the- cluster- amount sitting in the chair districts in districts bank account- highs up money that could otherwise have been freed up to go to the city through the G. R. T. and to the carry through the property taxes. And it doesn’t guarantee that these projects would ever get bills so- and I’ll talk about project phasing a little bit but one of the reasons that I one of the other reasons that I bring this up is because some of these community benefits like the trail improvements. Or the Abu Dhaka parking improvements which is almost five million dollars or different- next that money might not be collected until much later phases of the- development project. And so it’s not like The of items going to get built soon and yet this. Of G. or T. money. Is key In the kids districts in the gym districts bank account so that might not be optimal. So in terms of the costs again- the some of these costs were some of these streets Grumman’s this might just might be the most efficient way to create a mechanism to put money. Aside to pay for the street improvements it also would require the developer to build these improvements and then we get reimbursed by the city- but it’s not clear that all of these costs need to be paid for by the city. I’m so anyway we can. Talk about. A little bit more about some of the strategy around this in a minute let me get to the revenue analysis- so the revenue projections are were not a main focus of the analysis. Of your financial adviser from hilltop securities on however he did note that there were there were several anomalies with the revenue projections and several the memos that he wrote to the city- and it there’s no clear paper trail that says whether or not there’s and all these Were dressed in be- of final finding plan. But one of the things that I did notice in my own analysis was that the revenue projections that the financial adviser used to then go ahead and models feasibility with respect to the data or to the pair up paying off of the cost of those projects. Were based on revenue projections that the develop- provided useful top securities. Of and that were projected in January of twenty twenty. But between January and may and then July and then even in August The development program kept changing so the- dates of housing out they added housing and some of the right the retail program change. On and it wasn’t. It wasn’t clear which use was generating revenue in what in which year And so again not being able to see the correspondence between annual revenue projection and use and development phasing It’s really difficult to tell whether or not the developers projected revenue stream actually made sense and whether or not the city might in fact be caught. In this position where there were. I that were- push to later for of which might not happen because the development would be last use- so- this was our concern. Of me and of the other thing that well I already said that the revenue projections were not provided only annual basis and this is actually required by state statute I don’t think this is like the big deal killer but it did make it really hard to understand the revenue projections in addition to the fact that the revenue projections that we used for the feasibility analysis didn’t accurately match the final- build out scenarios used as far as I can tell. I’m and so the consequence of this is that- it was very difficult to get and to really understand how revenue flow the sources and uses of funds lined up- the other issue that was never fully highlighted was that if the district was not formed in twenty twenty then the question is would it be a viable if it was formed after twenty twenty because as I understand it by forming the districts in twenty twenty. The hospital. Excuse me the head been built. Would be counted in the increments not

in the base year. And the hospital itself would be responsible for generating a lot of increments we just don’t know what percent of increment would come from the hospital- because we never saw that we never saw the revenue stream charged you actual development On the medical office building is sort of the next phase of development we don’t know quite where that it’s Jan- and so then we can’t really evaluate the timing of the key revenue generators against the cost to really understand how much we think we could. Pay for so this is the disconnect between revenues and cost made it hard to really interpret. The efficacy of the feasibility. So in terms of the decisions regarding tax increment financing- of again one of my key findings is that there is a need for these decisions to really be policy driven. And to be considered in the and of a cost benefit analysis framework- I’m not saying that you can do an actual quantity a quantitative of cost benefit analysis analysis you current but sometimes those are hard and messy did you. So I used the word assessment here- of- or a performance assessment- just say- that. In making a decision and again it could be absolutely the perfect tool for really getting this for real Austins ferry you’re going- and I’m I’m not here to tell you that I think that that’s necessarily that this is necessarily. A bad deal but of but that’s because I don’t know if this if you really think it’s the trade offs are worth it- so the question is what what just the city yeah in exchange for giving up some of its G. R. T. revenues. And you have a general policies in- your general plan that suggests that the rules that the old- of the Country Club area is a target area where the city would like to see more revitalization. But it doesn’t set any specific targets about what kinds of revitalization you would want to see there what kinds of community benefits and again the Abu Dhaka blueprint that was done for the area- doesn’t. Set any actual of performance criteria either for what would make the city wants to take on. Of the giving up of gross receipts tax in exchange. For what benefits- on so when I of. Cost benefit is this is what talking about a an act. Discussion around we get for what we get here bomb and it then the second question is used and shared mechanism the most effective way to do this and- if you think that you can get the royal crossings Development in place but still it but expanding seventeen million dollars or twelve million dollars instead of forty eight million dollars. Of your setting aside a much smaller portion of your I G. R G. increments to the district and then you would still have the incremental increase in revenues. And potentially you could use more quickly to finance other things in other words the city would have more control over the freezing up of that and the city could decide and the City also. May have access to cheaper sources of capital so again I did not do a whole analysis of the- interest rates that these I think these are taxable bonds that the that the district of it. Would be using so their cost of money would be higher than the city of the City use bonds and use tax exempt bonds. So that’s another question- as to whether or not. This is really the most cost effective way. And then finally. I think that there is a real need use a transparent analysis real estate market trends and conditions now there is a big real estate are- dated. I’m going to call it- due to- aggregation at the end of the- packet that you received in July but there’s nothing that contextualizes the rail crossings site within the City’s overall real estate market conditions that of the real estate it is very general- and it doesn’t really chanced the potential for the actual absorption. Of the products that are being proposed for this site so again there’s no I kind of check and balances against the developers Rejected sources and uses of

funds so- I would I would propose more transparent and a rigorous way of looking at those revenue projections so these were. If you will some of my key findings about the district itself. And then finally these are the specific lessons I learned from the I put forward that are from the your reviews so these are like if. And when the city does another considers another to district as I understand that there’s a possibility the real processing. Also would come back. Is that I would suggest seeking outside assistance in evaluating and- negotiating that shared- to optimize the tools effectiveness so. Of the fact that hilltop securities was not asked to evaluate the efficacy of that revenue stream they didn’t do it wasn’t in their brief it’s not that they’re that they they missed something it’s just they were given numbers and then they did what they always do with them And the staff may have missed this point but it that is not surprising understanding how it should districts works and understanding the complexity of the relationship between the revenues and the costs is complicated. And in a city where you none never done it should. Districts before were with these very on in the status Max. It’s very call to require the- of somebody out city. To look at something like this so- that’s all I’m suggesting here is that- you- huh you get more assistance and there’s nothing wrong with asking for that- and it would help the city. I have an outside perspective on what needs to get done- again I have made this point over and over again is that cash flow in the sources and uses. Of the of the fund should have been looked up much more closely and all of the- material I read in the grass and so forth and some people were really focused on the size of the dollar amount of the of the cost of the- district itself. And I agree with that that’s why I put forward the scenarios that said we should cut back on the use and really be more aggressive in negotiating but I also as I said again and again site huge gap in any scrutiny. On the revenue side. I’m and of third to my that I was making earlier On that the city council the US should whenever it should resolution is brought to you- the first thing you. Could or should be asking is what are our policy objectives for this district what do we want to get out of the district and what’s our quid pro quo wrote hello or what are the trade offs we want to make. For giving up- the increments- and how are we going to really look at project performance in terms of the benefits that we want to get out of that- and again it could be. A series of trade offs that have to do with going beyond the district itself- and again one of the benefits of having the district is that it could really unlock a lot of development- that would give you more G. R. T. the question is weird where do you want that year T. sitting in your general fund. Or potentially. In the districts of bank accounts- which is that which the City What control after six years It seems to me I have another one I wanted to make about this but now I can’t remember what it so we’ll we’ll come back to that I’m sure. It’ll come back to me- as we as we talk about this- and then finally- one of the most- serve perplexing- pieces of the- legislation is that. In the first six years be on the board the- for the chip itself in the district itself is comprised of both public representatives and the developers team but after six years the property owners in the districts start to elected board members and those typically then become a majority of interest that are representing centuries the developer- and then the accountability. The districts accountability to the governing body is much smaller now- there is there is such a supposition that well that’s okay because of the number of projects and the cost of the projects are really locked in so then it’s fine for the district to just

sort of do its thing but where that becomes really. Sticky again is if there’s any interest in reprogramming the money that’s in the district and making any changes. Of in the- the costs the district could cover if the develop- if the if the district board is not interested in making those changes the governing body has no control- it’s sort of out of your hands now if the district wanted to add more projects they could they would have to go to the governing body. But the governing body can’t require the board the district ward to are either add projects subtract projects or otherwise reprogram money so I think that’s a major constraint. One other point that I wanted to make I’m sorry with what number three. About evaluating the costs and benefits and the risks on. I want to talk a little bit about- risks and- risk sharing here on one of the reasons that I would really push the city to be- are much more involved in understanding the sources and uses of funds is because- there is a risk assessment involved there but I think that one thing that I would want the city to understand is that- of their all their different ways of thinking about funding versus financing. The projects that are included in the district- and a conversation around- debt financing using bonds- is an important one to have because you can borrow money you get the money up front and then you can build the increments of development of improvements more quickly which is one way to unlock the future potential of the project more quickly so borrowing against the district is actually one of the districts greatest strengths- and so- having adjuster with the longer term and- has to be to borrow money. Is something that should be considered but it is again something that the city should fully understand- I know that there was some conversation about having the district last for fewer years are taking a smaller percentage of the G. R. T. revenue to be dedicated to their- districts as opposed to what was proposed which was the maximum amount allowable under the legislation. But I think that’s another thing that should be tested in order to test of the benefits of the project of against some of the other objectives of the project so in other words if you do a smaller districts on but you say we’re going to borrow money against it and then we know we got all the street. That’s quickly bam bam bam and that. Allows us to have more certainty our and less risk from whether future Of the develop have- then that’s okay- where’s we say we’re going to. Allow district to exist for ten years I’m only going to- allow the district to capture say 50% of the G. R. G instead of seventy five percent. Then you really need to look at how much revenue that generates and what that enables you to fund in terms of the this cost profile. So again really understanding that relationship between cost revenue are risks time being all those variables are very call hi complicated and something that the that the council needs to consider the governing body needs to consider. So with that- sorry I’m gonna stop- and I’m gonna stop sharing this green and I look forward to answering your questions. Thank you. Actually be nice to be kept the screen up so. So that the council can refer to that if you don’t mind probably the one where you had all the costs would be nice the one to forty. Yes let me let me put that back into. And I’m just gonna ask you a couple things and then when us let the council go from there. Can you all see the side no I don’t not yet. Okay sorry. Share there we go okay good okay were says excludes Onam do you have a price for that or wasn’t- I remember Councilor story asking- Mr white Wiegert about **** the Onam any S. he basically said that was a deal breaker- do you have a price

for that I- there was a price for it in the- July a memo that you all received I don’t have a- hi there my- head but it was it was a big. Number now I think that the- some of the city department heads felt the good about having the district absorb that cost at least in the early years- because they were concerned that the- that they would that they would be required to do maintenance costs without any increase in revenue- but I’m not sure that that trade off is a one for one thing and- so I think again the issuer on operation and maintenance of work whatever should ever fired of much- deeper discussions. Going back to the- objections the revenue projections water we- what revenue re getting every year What’s what infrastructure is gonna be provided every year when would our operation and maintenance costs keep in Because I one M. was excluded from the final- financing plan that I was looking at in August I didn’t include in this cost proposal because this is. But excuse me how did this come up For a vote in August this is the these are the numbers you would have. Okay so- I seem to recall something around in the neighborhood of two hundred forty million as what Mr Uygur thought that once fully built out and it would be about. To that degree well that was the aggregate cost that’s not the annual cost Robert the agriculture students so now the other thing. The only thing that I seem to remember was that. Was this your understanding that Mr Uygur was wanting to get paid reimbursed his- because that he’s already spent- that was is that yeah well at one point yes and we were looking at about twelve million given yes that’s correct but again that cost was- well that’s this- I believe that that- is this initial. Structure cost. One item here. Dr Martinez a hand up so let’s just see it what she has to say yes Council on Mayor Agnes of the Mustang is for the record the- they were to items that had being requested to be reimbursed and there was- and flight- traffic and I believe the streets those were the two items- included and. And the end of reimbursement. Do you know what that was Dr Martinus. Mr mayor I don’t recall the exact amount- but I can I can get back with you on that. Okay so Do you know a so what let me tell you what the only thing that I was talking to Mr Wiegert about was. Was that- I was the of the impression that he wanted to get reimbursed- I guess the second column the twenty million six hundred thirty three. And but with through bond I would actually do a bond and then reimburse them that way was it your understanding well- I thank The district would have done the bonds not. So I think you need to make a there I think that the idea is that they’re sortof a firewall between the district and the city- so- I think that the way the financing plan was written of there were different scenarios andthe developer would have the discretion. The districts would have the discretion let me say not the developer but the districts board would have had the discretion to decide how these costs were were paid for would it be- an upfront amount that the developer would put out and then they would be reimbursed with cash over time or would there be a bonds that would be. Levied would- and then upon payment would be paid back out of the- increments Incremental revenues so I think there were there was the in the details of the financing plan- my understanding was that the exact mechanism would have been up to the districts or- okay and so all I was asking was before we reimburse him- is that we’ve put a- kind of like- but conditions a performance conditions for example. Let’s

say he does fifty million of this two hundred forty three million and I rounded it down to two hundred million so that to me is you know 25% yeah we were just reimbursing 25% after you hit certain milestones Fifty one hundred one hundred fifty million two hundred million plus. Then we person because without that then we lose all control if we if we reimburse them everything in the first right off the gate of the gate and without knowing that the rest is gonna still be coming here well all I wanted to do I I’m not sure I’m not sure we’re talking about exactly the same thing here- because- in the way this would work is that- that so these are rough cost estimates right- and the costs could go up they could also go down- so what the developers trying to do here is create. Envelope of cost- and then all the other costs that are adding up to that two hundred million or whatever includes financing costs right they a lot of it is that services like you know you have to pay back your loan- so in terms of reimbursements- if the developer put sub the saying I’m just going to check a number of the three point seven million dollars and state just in round. Numbers when nothing gets built. There’s a little bit about. Minutes actually for million dollars. Then they’re- ways that the district could Take him back- but of that he would be eligible to be reimbursed for that cost and in theory he would want to be reimbursed with interest because he’s put the money out- so the performance would probably be around the delivery of. Actual projects- rather than just sending this as an abstract costs like we’re going to reimburse you 425% or whatever. That the performance measures for however the came back if there were a pay back like that. Members meant it would be tied to an actual cost for delivery of an actual asset Yeah what makes sense it’s a little I think it’s might be a little bit different question you’re asking yeah I get your and it’s basically the same- it was pretty much. Similar to same. Okay okay. He does a lot of amounts really reflect the financing yeah I was just trying to get- more of a broad picture when I in my discussion with him. And one last thing and then when to go to Councilor Vasquez one last thing is the other thing that’s troubling is it you said about after six years the board the authority pretty much rest L with a develop. And that would cut out the city and as I was mentioning and I’ve you know I’ve told everybody I we I’ve only been involved in one kit and that’s the City and word that we are the **** members As well as city council so Okay use it to MacInnes is a maybe armed records. Is to this it’s chance same thing. Yes ma’am okay. Okay okay so we have councilors- Vasquez Bencomo Florida’s gun that on and. I Councilor hello I do not think you so much this presentation was was truly great I really appreciated- learning from me. In this information in easy to understand unbiased and- clear and honest as distinct way for I’m a very complicated issue in a very complicated financial mechanism that is hard to understand so thank you in fact this is probably the best presentation I’ve had. Thus far On this project to date and so thank you for that- my comments- first are are actually to that and- I think some of your lessons learned Nextra no analyst- be part of something- project this this big and honestly this new for the city right having undertaken similar- should efforts like this before- is really key I think. What really muddied the waters for me in the last kind of discussion we had about this is a council was all the competing interests were kind of all giving us alternate information or selective information with I didn’t feel like I got the full

picture. On and so this is really helpful and I will act Analysis that’s that you know in in the same and the same format that you put are you put forth his presentation here today. And that we also get an opportunity to ask for the data that that we want because at the end of the day. I think as councilors we see a presentation like this and there’s still a lot of questions left unanswered. Well it becomes really hard to run a tight timeline to then go back to the consultants say well it’s missing X. Y. Z. and my date we get this information and so. I think it’s important for council to know. What works and for council to be asked what what information they’re gonna want to see of this type of analysis before it gets presented to us and then we have to make a vote or a decision on this. So I think that those are some lessons learned there- part of. Part of what I am thinking about and seeing this particular slide is- I’ve always. I was. Always of the spot that if we could come to. To terms. Or if we could counter offer. You know up to a proposal or to project that would be. Fair and beneficial. To taxpayers that was a smart investment on behalf of the City. And accomplish the goals. I think we set forth in the Apodaca blueprint. About that I would love to continue that conversation and I would love to be able for the city to counter offer something. Now if the developer that point says No way this is. Crazy I can’t afford this. Then find they didn’t meet the parameters of what we as a city. If I was it was a fine investment- on Unfortunately I think the conversation got so. There was just muscling in back and forth in editorials in the radio shows and art that we couldn’t have that conversation. You know. He got angry emotions got high and- and that’s not the way. To do business in my opinions. Do you know go moving for is- I don’t know honestly where the negotiations are where- the con the communication with. This particular company this developer are at this point with the city now but- based on this information. That you represented us today. Do you information for the City the answer to kind of counter Canter proposed a tiered proposal- that looking at these scenarios right we would say You know what we can finance our own trails we can finance our own parts for a lot sooner and a lot cheaper than this what what this process Absolutely no operating and maintenance are you have to build the parking lot yourself But here’s some of the things that we do see value in. And that would hopefully help you you know get your development off the ground- do you feel like that something got with the information that you have that the city can develop today. Now if. If it were if it were me. I would want to see the that revenues. For I would want to see how money every Every year tied to what the assumptions are about to go- because it’s very possible that of in of that for example in particularly if the hospital goes into the base year. That the that the project will- in terms of its annual cash flow and even its cumulative cash flow will generate very limited funds for the first three years or five years or something like that. And so then that’s where you really start to ask yourself well. G. of do we want to pay for you know summer driver do we want the store it’s it becomes more a question of what we think we can afford As opposed to how do we get this to be the smallest deal or the so I think again that kind of one of the- what is that what are must haves whatever need to house water are nice to have- and how does that line up with what the developer on Realistically thinks you can offer. In terms of development and I think that that’s- one of the challenges with the way the state enabling legislation as written is that it really it’s targeted towards creating jobs- and so it doesn’t take that serve real estate development- mind. And really build and accept that it does say that you should share your revenues My understanding is that us that was not- a factory new service really debated in the press the this is really what was debated in the prospect not like what can we afford. Sure so I would I would not I would say that continuing to do- sensitivity analysis to really got better- revenue projections from the- Delbert and one of the one of the challenges that the way that year to revenues from. Located but I think you know you I would have wanted to see- you recall that sensitivity analysis we do that

all the time we do performance for development projects we say well what if. And I would I would want to see what else a sensitivity analysis looking at revenues across. Thank you dinner on no I think you provide us with the goods- foundation of what we should be looking at right as a council when and if we do get more proposals like this are energy more proposals like this work or even. You know do things ourselves- so this is really really helpful- I really appreciate it sounds like there’s some key information here’s missing still home that we absolutely need to have to make a good decision on this and that helps me get some clarity- on on how if you move forward ever at all on this and so. Sounds like maybe we have some more do I think on on to reform at the state level. The show minutes not just jobs but it’s you know it’s quality life it’s all the community development stuff that we- really care about and- thinking about. Some other projects runner want to undertake is also. You know to address that- under investment in blighted areas and how to do that in more ways than just creating jobs so right. Exactly and you know what- doctor Martinez is staff is now more conversant on this than I am but when. I met with you all whenever that was in October time code time universe. Right but- believes and- when we talked all the different. Rules and- since you gave that really fabulous presentation she talks about them I think it’s the metropolitan. Redevelopment district straighter the- areas right and those also have a tax increment tool associated with them. But the mechanism for deploying that tax increment is different than it should districts. So that that might even be an alternative to it should just is the you. Created at an mRNA. A bigger area think about a difference project so again- this was an opportunistic district because the developer brought the proposal to you- which is what this is supposed to be for the two. But but you could have looked at this and second year again is this what we really wanted to do we have another way to. Approach this same problem- so that’s another another possibility. Thank you so much demand thank you mayor hello my comes to question it thank you also Bencomo thank you hi Mr mayor and recommend for you you know for sure you always leave me feeling pressed and- I feel like. My brain is on fire. No thanks to conserve records for that context at the beginning of the statements because I felt really similarly you know and then you and then you Councilor I felt like you know I think there aren’t so you know black and white with so much gray area like this with this I’m very very glad that we decided to do that so we decided to ask you to do this for us- you know I felt like I one point the conversation was really about We were getting two very different stories and perspectives and it became about winning like which sided Well to what is best for community and what. What is the best you the public dollars what is the best use of this property that will help the entire- city not just the particular area so I really appreciated you laid out and I left and are you planning so This is very good. I a couple general questions so I had for you obviously my only experience with Ted is the City Ted. Did I hear you sort of say correctly or maybe what I heard you say was that. Most kids are private. Developer initiated I was under the impression that the City take that’s the norm like that’s more common but are you saying that. A private initiated Ted is actually mark that’s my reading of the state statute- of is that the to the to the tax increment development district is set up- and again I’m I did this is a pure review but I’m not of. You know an attorney in New Mexico so I might be wrong about that but that was my reading the statute. Was there it was it intended as an incentive- to leverage- mostly businesses so and you know the other thing is that- you can see this targeted as a to a company. That wants to build a building or- develop kind of a complex that would be more about job creation- rather than doing some kind of-

investor driven real estate And someone somewhere as you can see that you can say that the hospital medical office building it would you could sort of see that as being because that’s a job creator and then the shopping center is kind of a gray area I would argue- the is that the are those the kinds of jobs you want in the in the city how does that fit so- but again that’s that’s sort of a subjective. Again this is a gray area and there’s a lot of policy decisions in here that are not driven but just five technical analysis yeah absolutely thanks for thanks for staying nine honestly think to me that give me hope right that there is a way to do that like there are. Responsible and smart ways to be able to do this that have worked in other areas but that it’s worth it looking at all of the things I love sort of the equation now you. Owe their own you know contact time. Raise revenue I think. The New that because I thought that was for. Yeah I’m and then you may something- you wanted it as this as large pop in terms of. Dollars right and in the scenario you’re sort of saying like. And it’s also possible to have. Or that no we were saying I was saying that the way the legislation is set up- either it explicitly or implicitly include and be seen as incentivizing developers to make the district as big as possible I eat okay- because they’re shifting the cost off of their project and on to the district yeah. So it’s not their money that’s paying for this it’s the city’s money right okay I’m going to clarify that I thought I heard yeah no no no it’s the opposite so that’s why I’m like well if it’s our money right- then huh you know how much do we want to pay for how much do we think we can really for. Right and then the benefit you’re getting is the developer that invests Their money. Right right. So know getting into some of the specific I- what is so I get that like roads are probably those are in the early phases right but those are very critical and important and who you’re telling us that these some of the things at the bottom the one biggest concern about that to me if you’re really important and not we wanted to develop right or some of that community improvements like. Arkan the trail system right why do you why do you Think those are would be look much lesspriority was not that I said they would be lower priority yes I’m sorry that you okay they would be. Lower priority in the districts That’s doesn’t mean they’re lower her for the City’s I think that right so the developer would wanna put all them early money into the things that make their development possible- streets you know etcetera. And then the trail system and the park- just you know those are like- goodies for the city but the developer you know doesn’t care one way or the other. And so that’s the other thing about the financing plan. I I’m I’m being probably to dismiss of so my apologies to the developer when I say they don’t care one way or the other I think that the- the trail in the park improvements don’t do that much necessarily for the value of the development project- and my understanding is that those choose in particular were added. Into the cost between June and July or something like that like there was a council meeting in June. And you know I’m just going back and looking at power points and- that were presented to the council and reviewing what information was shared through those so for better or for worse but that’s my understanding. Is that the ark and the trail improvements were added in. As a request of the City Council. But what what the reason that I’m saying well maybe is because- then you allow the defendant districts can collect that G. or T. and they’re saying well we are collecting that year to pay for the stuff. That they might not have enough year. To little of those five six million six and a half million dollars- and They Might collect three million and again sitting in their bank accounts so they don’t have enough to pay for You know or or let’s say two and a half million so they don’t have enough to pay for either of those projects completely. But they’re still holding on to the City’s G. R T. right so if the city had to G. R. T. instead of having it go to the district. The City might say well let’s do it

let’s do it- apart bonds. And pay for this ourselves and we can use our G. R. T. the way we want and we can use it when we walked. Right so- so you know some of these things that would be paid for in the out years of the districts are things that you might want to check out of the district because- that way you’re giving up less of your money- and there’s less chance that money would be sitting in the districts but would not be you would not be able to reprogram. Okay that’s super helpful to understand thank you very much I’m I just have a couple other questions in terms of- can you repeat your point about the hospital and sort of what black because right you can’t if the hospital was to be included in the base year but what’s the alternative and then what are the consequences right yeah so because I never saw an annual revenue projection I don’t know where the hospitals that- and I was under the impression that the medical office building built and I was told maybe not right it did not. Okay great so- so the hospital is a huge it generator G. R. T. purchased strong number right of reason and- so if it’s in the base year all of that money goes to the city if the base year is formed before the hospital was finish construction was I think that’s the trigger is that if the development is finished in the base year if it’s only finished in the base. Year it can go into the increments. So then what that means is the it meeting all the G. T. I’m talking only about you two because that’s the be benefits of this. Right just would call both- sensually property and your G. and as you all know Mom suggests the camera so the G. R. to. From the hall. Of as my understanding is- the on base year twenty twenty G. or T. for the hospital would be in the increments. But if the district is formed in twenty twenty one. Then the hospital’s increments would be in the face and not not eligible to help fund the district so then my question is how viable is the district like what is going to be. Driving that incrementally Where is it coming from how how much can you find. You know again what can we afford. And this idea of source- and uses of funds is what’s source of the revenue how we can use. All right. The question is for me then The hospital itself is finished right any and everything I guess question. Is be anti plan that. Medic bills and what finished term right sort are. Just one built would be. In the bill here so the anything would be the in the few would be in the Inc. Okay but what we don’t know is what the in of having the hospital out of the increments has somewhat the district can afford. Okay so. That revenue piece. You can see what Elected leading interest Important. I get so my one question is- I was actually to ask you if. And maybe there’s a question for do not but also Dr Martinez around you know he is not the only. Possible here have we talked to the developer about other. Opportunities have they rejected those I’m curious about ten AM something else like you said we like the mRNA- and have those been discussed and if so you know what what happened with those discussions And if not then you know can we have those discussions. But what he does he wanna respond to that yes Mr Maher Mister mayor are Councilor Bencomo the when we started the conversations with the battle for on this specific item- we were- functioning under the- evaluation of potential incentives to make that to meet the objectives of redevelopments for this specific area. The the Ameri a conversational as as- misspelled Sir has mentioned it’s an alternative- we did not- fully evaluate that option and that is something that we could for the discuss with the

developer we have not at this point- one really important item for the metropolitan redevelopment areas is that. It requires a designation as blighted and whoever is within that district- it’s a process of designation and whoever is within the district or area- needs to be informed of faction- and some some community members may not be supportive of that blighted designation and so that’s that’s something important to consider. Us we research the ways of- embrace and other mechanisms- all other incentive mechanisms we learned that in the state of New Mexico- Mr Belser mention NMRA with a financing tool embedded into it and- Cindy see have- helped us with that in in the last presentation. Tapes are not which is that the they’ll mechanism tied to embrace tapes are notched- largely. Use in New Mexico- and the it the- delay on that charter greater than the to The Tate us also- Emery a its it’s- and not for these area or they areas but as miss. Or mention I think it’s very for to the. Of and then you for the tool to us get there which I don’t the that we spoke in. On this one- to help us out with that evaluation Thank you Mr may. The legal documents in Estonia to question yes act this number was scenario number four Twelve million- what was was the developer thinking that if we were to do this they would be able to provide so much and so much and a new buildings and jobs there were discussed that did they did they think that they were going to be able to build quite a bit of you know eventually. You know we build out. Mr mayor can you repeat that the question. Okay so. If you need any of these proposals you know because you notice they just keep subtracting but when you go from the first one I know this they talked about they didn’t really need this the parking structure. So if you look at scenario number one let’s just use that one just make it easier so for that twenty million. Wasn’t the developer. Suggesting that they were going to be able to do quite a bit of improvements over the number of years. And if so did they- hi a number of jobs so that. Mr mayor as- ms Belcher mention- before the state legislature ties opted to job creation and so there was a projection of jobs created plus- and amount of investment Of the total build out your credit do you remember how many jumps they were talking Proximate with Mr mayor by believing was. I cannot recall the specific yeah maybe look it up and then well maybe for this discussionas well the one no I want to say that it was around fifteen hundred but let me just say first of all these scenarios remind these are not the developers scenarios may just be really well ironically he talked click when I was talking to Mr Uygur he talk something about in that ballpark number one around twenty million or so. Take. And he said he didn’t need them Parking structure yeah. That’s what. So yeah and then the thing The- you’re asking those when mayor Mr. Which is- of we get the same by that for all Level of and passed. And the question that’s the must right are will we to see year. Of for taking last and give up last of our church. We’ll circle back to that I don’t want to take time we from the I listened to Dr and was there was going to ask it real okay do some non crunching and- back later right It me I would mayor I. Bet Yeah yeah actually no you know what sort of what my trainer Mike you know I’m here I’ll just say this last thing that I thought you know mentioned that

I thought was important around- meeting targets and goals for the area that you thought perhaps. We didn’t really have those and I think and I think you might be right the Apodaca blueprint I think had maybe someone zoning right that’s right it’s a land use plan. And so I think I’ve also heard a lot from. Community members in the area about what they don’t want. But I haven’theard enough about what the do you want and so I think for me this is a really important. Sort of- conversation that we need to have quickly so that. If we are presented with a new proposal and I have the opportunity to re negotiate- that we have some of those. Sort of- goals and aspirations for what. You know certainly mayor pro tem at the Councilor for that district but that community as a whole what do you what do we want to see Not just what we don’t want a blighted designation we don’t want that we don’t that like that’s- not necessarily helpful so I think it’s important that we- have. That that- I don’t know I perhaps- the city manager you folks we can build- and negotiating team I’m that can reallysort of get out these. Target areas and set some goals for what we do want to see in that area of town- that’s it for me Mr mayor thank you very. Much dean. Okay thank you council we have council lotus. And the Mayor Pro to and calcium. Thank you Mr mayor and thank you misspelled Sir your- review. Was quite a- and I found that- you require term What’s the word- anyway you’re very detailed in the for the failures in the proposed- chaired by- those developers and yes it’s true that the- that she- that staff had to go through I nine this part is a mystery to I think certainly to me and probably my colleagues Including the mayor. Of as to why everything was just so rush it was just so rushed and- this is the second tier the city has ever dealt with the first one was someone- the city owned property and that sort of stuff but- so all of this came about in a very rushed manner and I don’t understand why- and I think that there were a lot of- a lot of. A lot of problems and there’s no way. There’s no way I would ever want to do business again or even. Even think of having to do anything with. Regard why are. And his cronies his cohorts from I thought that they were very deceptive in that area. By might by a lot of people. Feel that it is blighted. But the blind is due to the owners and some of those people in that combination. Obama what evelopers- aren’t- have been the owners of that property since- since elected Council the city so the blight has been caused by the property owners so I don’t get that part but that’s their problem not ours What is our problem because it’s our city and our residents have to deal with the blank and Dustin just the ugliness. But there are just so many things that you covered that- I read your- of report which- the paging by the rate- the pagination I should say is interesting are you start with page zero and then go with. On to page one and two and so forth but- in the memorandum part. Which is address to the City of Las Cruces of. You- you noted immediately that the developer was required to submit nurse technical documents including but not limited to tax revenue projections try to development facing for twenty five year period and itemize public improvement constitute would cover. They were key in these working input puts the legal documents Mr for the formation And and apparently they- they were not submitted. The if you want to say that- report for some re and this is the part that you noted- on page one of that memorandum which is really the second page of the last of

The last sentence in the Perstorp paragraph therefore the process of reviewing documents and engage in negotiations with developer as required staff to switch swiftly move up a steep learning curve. And and the mayor and- and Councilor Bencomo when I sit on the finance select committee. And it’s called a finance select committee or something but at any rate- Mr mayor was absent for that meeting but- council Bencomo and I were there and I review the minutes. And we ask the questions that minutes Gus was able to answer. What there wasn’t a full explanations with the kids really really once and I and while I’m on the on that I don’t think we fully fully understand. From you misspelled Sir thank thank goodness are trained- to look at this sort of stopped in L. mmhm get we get this along with a million not a million but a lot of other things that were all of a sudden this was to become an expert and I. Would on it and then you know and then the onus is on us and shame shame on you no shame on the city council when we- can’t fully comprehend something. And yet were required to make yeah and the very hurried in a very of sloppy manner. Right that decisions. I was against this from get go because the preliminary. There was some kind of preliminary non binding agreement agreement. But the resolution that went with it didn’t jive it just didn’t jive and- in my reading and- so I want to thank you very much for this there’s just you know I underlined and made notes along my meeting. But I have to say that I believe that the kid in New Mexico was wired so the enabling legislation went into effect I believe it’s two thousand six. Scuttlebutt around there was that there was a legislator who really really wanted it to pass. And that’s why there’s so many in the legislation and that’s why it has to be reviewed and I think there might be a legislator right now. Who is looking at after every yeah. He what’s the word. Read our wording it amending the mental yeah I’m ending but I really would like to see it. Repeal the private Check the privateer in the final analysis when you look at everything and everything you have to look at bottom line you have to look at the impact is going to have on the taxpayers It’s worded right now where the kid- can’t board can be comprised down the road. It can be comprised of anybody that the property owners choose to be on that award and then they can just but it could just they can wreak havoc. If they want and- and I really believe. That there that the- that the developers did not come in good faith I believe that they were holding a lot act. It was evidenced by your review that showed that they didn’t- they didn’t comply with the statute in certain. Areas in terms of doing this that and the other which you covered and I have my notes but- anyway the whole thing I think is terrible. I think that the church should be repealed and so far at least as far as- as the year. The private gardens. So- and it’s interesting that the statute does say though that it’s for areas that are blighted and were- economic development is necessary and- and yet you indicated that that the focus is generally in areas that need economic development we have doctor Erickson I don’t know if he still attending this meeting he was on earlier but Dr Erickson wrote an article on for local newspapers. And he said that the economic development that would occur in that area would be based on the- other businesses that have moved into that area so it wouldn’t matter that you can measure what the- what the success of the kid would be. In so far as bringing in revenue because that revenues taken from another part of the city Yeah and- and given that we’re one of the poorest. States in the entire country I think we’re the poorest right now we battle with Louisiana and

Mississippi there’s always you know just that struggle to be last in economics and everything. But so- anyway and then the so I- so I and I think that poem yeah it is I don’t think it’s service I don’t think that and then they you know the part that really bothers me about the statute to is that it allows the- increment the that the district now governed by the board would you be ultimately by the cronies she’s me- the people appointed by that state’s. Poor choice of words. Pardon there- elected. The mother elected but they’re elected by the- preorders yeah Robinson you know they could be voting for them- but- so I that there’s just too many things wrong with that- and I and I think hat there are other ways that the city can use that land or property owners can use that land and you have proposed- owners- only. Role the only way a little ballot that is very. A kid well then I think they can just for another few somewhere else in the country. I don’t local anyway- so. And then with- and then with the onslaught of Kobe were finding and there’s I think there’s there the New York times as an article almost every day about how- they coded as classes to work remotely and that a lot of the brick and mortar- that businesses are doing well enough- but not well enough but- actually considering going remote because people are enjoying working remotely you know they’re saving. Wear and tear on their- a- their minds their car and- they you know they’re adapting to working from home. So this would probably be the worst time in terms of economic conditions to consider a change especially here Las Cruces here in Mexico So- so in other states thank you noted you noted- this page for of the I don’t know page for. This two sets of readings here but H. four one of yours- you say that in other states plan documents required to form a tax increment district often include specific community goals associated with that district and demonstrate how the projects the district may finance. Will further these goals well none of that was set forth in. This post- I think that- I think that your one income and page five middle I think it’s the last sentence- well the district cannot change the list of projects and plans to deliver without approval from the homes jurisdiction’s governing body. The to board can have considerable discretion. Over when and how it spends its money including deciding when to borrow money using bonds or how to expand revenues for operation and maintenance expenditures which are very broadly defined under the state statute. So again the state statute has its weaknesses- and- there’s a lot of holds there and I can just imagine just based on the preliminary. Interchange we had with the proposed a two people From property owners- they- The seemed very disconnected or nonchalant M. S. to the needs of our community and- and- I mean they could easily just say okay we don’t have enough money here let’s just you know get a bond measure out. And I just can’t imagine doing that to who are tax payers I mean I mean the kid is supposed to be doing that for them already so again there’s a problem with this statute hopefully our legislature legislators. If they’re not listening now I hope the there was a here from

from from. So- thank you I thank you know I can just go- some finally- for profit I think it was the last page of your presentation. Your your power point- where you went to all these scenarios as to. What the eliminated I think scenario for- well anyway. I think what’s very important page zero is that the kid annual revenue generation and development facing assumptions- the state statute requires estimates- G R. T. and property tax revenues which require. A series of assumptions those were all lacking- and- and then and then as you can only noted and stated- at least once or twice today. Is that- the road crossing a road road crossing at to financing plan revised on July fourteenth twenty twenty Final does not include any annual revenue projections so to me- it shows that- that there was- a lack of good faith in which they presented to the city and- then it was just downright- it was just downright and business like so- I like very much your potential lessons learned for Las Cruces- I have. Exclamation points- and- and I especially like I mean if it’s going to be around- which I hope I hope it doesn’t- I hope there’s legislation just wipes it out- number four. Is to- number four evaluate the option to have the governing body service the district board the governing body would be the City of Las Cruces city Council of the city’s legal council strongly advised against this option and that is something that I would like to ask for city attorney- as to why. They advised against it and- and then you to never get that the rationale for this is never fully clear. Also because of this was this was a developer initiated kids. The developer may not agree to the governance structure no he won’t you are so wise in this because the mayor. The reason they backed out right before the August eleven meeting. Was because the mayor asked and asked him if he would allow the city council to be the governing board and said now And I think there were other you know. Of well I think there was a pilot deal breakers that was probably one that just tip the scale if it wasn’t being to that point home. But anyway again comes Belcher thank you so much- I really enjoyed your thorough analysis it was just a very pristine very indecisive And- very helpful to me- absolutely very helpful to me to- it just reinforced my. My own. My decision not to support this to and- happy holidays to you thank here. Thank you for all your kind words you’re welcome and thank you with the- you can also so I see you’re on the fence on this. I’m never on the- I’m business I’ll tell There I think it was council be disturbing next sorry okay- after you sure go ahead all you did okay. Go. Thank you mayor and- misspelled Sir I really appreciate that and all the steps and- the information you presented thus far and being the representative the district- I of course want to see development there and what I. Would- what characterizes that area as blighted and many people so stops may be assumption that some people don’t characterize it it’s that is maybe- not the correct the sock and I get countless opinions weekly about that place and complains about the

trash in the weeds and- what and- I think. Merely it being vacant the way it is that it and the extreme amount of acreage. Is its blighted it there’s nothing there and so with the exception of the hospital a very beautiful hospital with beautiful roads to get to it but everything surrounding that- to get their is- undesirable in my opinion and so I could understand and so for me. I’m I am really- into that process like what’s the process what should we what should we have related to if a developer comes- to us as they did mmhm be prepared to do- and I know you have- such such a wealth of knowledge and expertise experience and that is what take aways what recommendations other than the ones that you posed in terms of process and how to so that I can you know at council felt very unaware mmhm. And I know the I met with the developers twice and actually gave from my perspective. To have in terms of the conversations that needed to be have with the number of councilors be. It you know create a rolling quorum You know all those things and so. I had and then I didn’t hear from them for over a year Exactly what I had felt what happen what could happen did happen- and so just hearing from you- based on role within the confines of our law or ordinance citizen I opted to fill the chicken in the act like you don’t know what. You D. says but my constituents got hit a hold of that P. U. D. and you know what goes to- planning and zoning. You know all those kind of quiet from show things that are really difficult to do your job I think. That you can so interested here’s some of our process sort of marine to beans right well that’s a great question- I’m one of the things that the Daniel Hernandez and I asked the city this is one of our very first questions is why didn’t you do the beauty. First and I’m I’m I’m not sure I can totally recall what the- answer to that was but- I think that in an ideal for whatever reason it did not get. In an ideal world that would probably be the place to start. Okay and you know you did the- of the daca blueprint which again is a land use plan right- but it didn’t have any. Economic development objectives associated with the so I think that the questions I would have created one as well- how does that how does this how does how do the projects. Opposed in the district in the two. Help us implement the Apodaca blueprints and- so that would be the first one of the first questions I would ask and then what do we need to include more detail on that he G. that would help us really narrow in on is this the street configuration we think we want- is this the use that we think we really wants- and- I’d spend. Again it’s been a few months since I looked at that. Plan but in my- opinion it was very high level very very general was very specific some and I think it’s a little I think that the community process is a little tricky because- what you want the community to tell you like of. The this is a financing stress that **** is a finance and strategy it’s not a visioning document right and I think that that’s a really important distinction and that you are kind of going from the big visioning document which is really what the opera doc of Print is just something that’s got more specificity in it which is what the beauty were provided- and that’s really where the public should be weighing in do we do we want these are do we are we happy with this kind of land use approach- are is just second justice configuration of streets really were. Of and then really having some understanding of what of the existing infrastructure barriers in the area of the- him but this develop a one four. Of do we really need some merit and I’m just I’m just reading off the list year because honestly I’m not supe familiar with any of these

projects that wasn’t mine Again my grief- to come in and study them but you know I didn’t are these again are these need to have it’s nice to have- how are there if they’re if they’re things we really need to have. In our capital improvements plan have be hiring these prioritized in other plans for the city- and if these are relatively low priority improvements relative to someplace else. But you can get them built if you agree to this chip is it worth it to you you know I just think that that. Process again a little bit more transparent process But it would be it in my opinion it would have gone the vision in dark. Of the gene G and that would be kind of the- and- process. And then and then this. Are well it’s just where we want invest research. In this area and I know it’s real hard. Citizens live in the Syrian you start dust the blood all that kind of stuff by the way the definite of lie is probably spelled. In the state legislation and it’s not- objective and not subjective it should be objective there should be. And you know the investment in the hospital might already start to work against making the case for why I don’t. I don’t know Something about- in any case- which might be a reason why the ticket is. Right so it could be that you know again if you said well for twelve million dollars I’m just you know again I’m just making this up now but for twelve million dollars- we could get the key infrastructure pieces in place these are not things that we had in our capital improvements budget they’re not things that are in the- metropolitan planning organizations budget With if we give up twelve Million dollars of our- revenue plus you know the interest rates are The interest over twenty five years whatever the cumulative number is- it’s worth it because we will of The state for and then out of that we will of cotton however many jobs you know that number down. But you know what I’m saying like it you might say well this is this is you know relative to all the things we need in the City this might not of been the thing that came to the top. But you know for this much money- and you know when you talk about the cumulative amount of money however two hundred million dollars or whatever if you were to contextualize that against your total projected G. RG or that same twenty five year period It might be a fraction that might be a very small number so if you look at that number just as a standalone number out of context. It might you know have a tendency to let somebody’s here on fire but if you look at it as you know a percentage of the total City’s total expenditures- and what the city would have to get up and give up in order to get. The fifteen hundred jobs a new grocery store in this area exception subject. You might again properly contextualize. It might absolutely be worth- and the devote. Is responsible for floating the bonds they’re taking on the and again they’re the cost of the bonding- all all the costs are built into the chips so it’s it it’s not the cheapest way to do the stock but it might be the most expedient. Right right right so I just you know I think all I’m- suggesting is that the city go into this with their eyes wide open. And just really look at the full I think this is really the problem is the fall kind of spectrum of. A benefits and opportunities against sort of. All these options were never fully weighted and I think. You know could be done differently that’s all yeah sure. Yes this usually for interrupting after you finish and before mayor pro tem starts Larry Nichols has handed be probably wanted to jump in and help respond when you’re comments mayor. Yeah that’s that’s that’s basically my point I mean I guess I’m I’m hoping that I’m helping you understand the process. So I think that the public process is really around. The vision hearing and that kind of the details of the land use program and then. The minutia of the funding and financing and what the trade offs are should be something that’s transparent But that’s not the kind of thing you go to the community and you say what you like twelve million thirty like fourteen you know sort of like- but I think people should definitely way- and that and the link with the trade off things are what would we gain like what we want to get out of this I think. Definitely should be something you should worry and- absolutely thanks Dan okay mmhm. With their in. Yes thank you good afternoon everyone not Larry Nichols flick to

development- and mayor and- council done really important Gandara and Councilor Bencomo Aper attention to of the- that them know comments were make review. The epochal and the all the- a moral there already. The I needs to be mentioned that- I misspelled was saying why we know need to have a look better I. About space. About the apple blue. We have a consultant happen. To develop the Apodaca we spent about seven or eight months in doing that we had overof separate public meetings asking people in the neighborhood. What it is that they wanted to see to develop their- and we develop a master plan for that. Another thing that Mr you know that. Was the their financing mechanism. And that’s what what about the- the tip proposal. I suspect and backed up I think we can find out this quickly the their own ways of financing vehicles for a project of this nature other than. The and maybe those need to be consider but I wanted to be on- forward. Yeah blueprint take to a- well to surround neighbors hood and- in her district. One to see happen there they wanna trade in one the parks implement retail mix Reid they want to professional To support the- Hosp in the- and the same for the a more but it was more or less commercial more of the of a desert type of activity that talked about the history of that location so what I just don’t council I just wanted to. Mention those few things that. Thank you I think is a fifty four fifty five page. On the applicant blueprint. It does talk about the land use and- one zero service and so in that wanted to see happen to that ninety two acre parcel. It’s thank you Larry- I appreciate the clarification I participated in that I think- really deny from my perspective you’re saying this is vision rate that we have to break it down into some data like some measurements mmhm priorities and happy we negotiate that out using the fiscal to right the fist financial tool right- and I don’t know that that is something that we have for every single blue printer plan that master plan that we that we have aye aye. Aye it’s I want it instead of just sitting on a shelf right to be right And that the city is in the driver’s seat up. Pardon me. In terms of either doing a written request for it and interests are you know Arafat- four or and you know that that we go looking for developers to fit that to fit that need. Whatever whatever that is- the other the other thing is mayor asked about the you know I still have all the paperwork from the last time. So I was running through some of the stuff and you know there’s some obviously you know I’m not an economist and it’s not in my area. But there was the- day- they made mention of the implant economic. Done right then they used to right then develop that what would be the employment in. General direct and indirect and again as comes to conserve lotus’s point. Some of this stuff is new information to us and I don’t know quite how they derive from three thousand nine hundred and eighty five jobs- four thousand of those are one time employment act impacts and when you think about that what kind of jobs we can deduct you know. From senior living nursing home you know skilled nurses doctors tell retail pad restaurants grocery hospital and medical office and then just a regional office but no the doctor Ericsson was concerned about the movement outside of that district into that when it doesn’t suit us so. Those things are are from my perspective and really all say this and close the I think we need- lot of training mmhm as as as a body. The body policy making body around- the ticket as what what you know the best use for that is but also you made mention bonding

financial tools those things you should have done that we understand what is the best mechanism when staff comes to us and say. This is what we think will yes I mean we I don’t know because that’s not my area of expertise ensures good but not sure that’s the right mechanism. And comes about is talked about the attorneys right our adjourned specifically what we hired an attorney not are inside attorney right like not Jennifer Baker brown and Others- it from from her unit or her department if you well- at so those are who were used to having those conversations these are very lofty very Cerebral in nature you know this direct read it like three times in such a short amount of time. That that’s hard to regurgitate so I just want staff to be mindful of that- and also- helping us and I would recommend let’s get some training there’s trainers I understand through sprint talk fast. There’s people specifically from the FAA that are that that do have this expertise that due to trainings for Connie’s municipalities- and we should do that but I also it’s- a little before that maybe a few months before that a kid resolution. That’s right% and. And it’s like. I felt like up okay to some good my- I want her to be now that I have a little bit of expound experience under my belt. Do you know what. I would like to see metrics in that resolution and can he do that even though the state says. This is what it is right this is the law this is what you follow but I- am as a home rule we can add metrics Back we expect any build out to have twenty five percent- affordable housing mmhm this is what we expect out of this particular one and any other sort of. Building that you do related to that to include you know and we expect that of that you know we want to see an increase in these many jobs at that. Act can you give me a little bit of direction on. I’m on the right track yeah yeah you I think you are to some extent so I think that your excellent and helpful to I think some of those metrics when of calm. Out of the PUG so for example the requirements for inclusionary housing would have come out of the feugiat- the mechanism that although the gin- legislation does mention affordable housing it. There is no- of the grill mac. In the- in the way that you to structure to actually finance affordable housing I don’t even think it’s allowed project called out in the led just I have to go back and- look. And I do know that staff did talk to your housing people a little bit and everybody went oh this is really interesting but we have to really think about how to make. This work. So so I think that that’s one of the- another question is if the community has a lot of- performance- metrics that they would like to see come out of the development in this. Area not all of them might be delivered by the chip itself right. So housing affordability is a big one- because it might require that the City do some kind of a- of. Housing strategy for the bigger area- because if there is reinvestment in this area could be used property values other places you could increase people’s property taxes I mean there are a lot of sort of. Ripple effects this is what we’re seeing in Santa Fe where I’m working now on the redevelopment of the Santa Fe college of art and design is a lot of anxiety that you have. A lot of re investment goes into property what will what will the ripple effect beyond some and that’s not the problem that should- nor is the to a good tool for addressing that nor is that a reason not to do that **** or not to. Not to try to incentivize development in this location- and as- as- believe it your- economic. Director wage out- you need City had call display I mean you already All of money into in the opera who. And so for and so on so The to in some ways is a logical next step it’s not you know that part of it wasn’t Crazy I’m sorry. Yeah it’s going to be late in the day everybody’s tried anyway that part was unreasonable. This is

an implementation tool and as I said earlier if you could. If you could do a better and I also just of the sources and uses of funds and you can contextualize the numbers kind of in a bigger context you might see that this is a very This is a very reasonable. Yeah so I think that’s what’s really- it’s not that the chat is a good idea or a bad idea it’s just having a better idea of how well it actually is going to work to deliver what we want and right. So and you know and if it if it’s done in can get are there other things that we could do in conjunction with us and again in terms of your to your earlier question about process. This is where I think the beauty would have been a natural stuff. Yeah yeah I just kept pulling the goalie. If only he saw the PDP first why did we do it and I don’t know if it’s- because it’s against like I said all those. All those requirements in the quasi judicial- physician that we find ourselves right after planning and zoning I wasn’t sure but I again- I think there was so many. Lessons learned from myself and the rest of my colleagues I hope from staff’s perspective you’ve given so much information and things to really. Continue to contemplate right moving forward I’d like to see us- reevaluate our resolution related to the ten and have some metrics- some absolute very specific performance measures. That we will give you this money at this 25% completion you know well I can’t let me let me back up and say that the performance metrics might be on things like jobs created. Or whatever on the performance metrics around the funding and financing. This is where I think we don’t have enough information. To really say because again I think that’s what what we think we want and what we think we can afford. Right and what we want to. Cast so to some extent if you agree to do that **** your gonna have to sort of take a leap with the it’s a partnership with the develop absolutely right and so- so I don’t think you can say we’re not going to give you anything else unless you hit this twenty five percent. Whatever because there’s going to be on certain key and so I think you need serve there this is part and you know you’re kind of earlier point about really being educated about what’s the right. Mechanism yeah right so I think that I think that that would really be getting into what is the- what’s the financing strategy. And is this what we call a pay as you go in other words- the developer’s gonna put out the money and then they’ll be reimbursed out of the fund says they get collected- but they have to present a reasonable reimbursement requests. And the reimbursement you know you’d make a that’s where you would have a performance agreement about you know what at what point you might make these reimbursement. Lasts you’re you but you’ve already agreed on basically a cost welcome. From the actual project. You would you a similar agreement for each individual project you know it would really be tied Again the- the delivery of the actual asset yeah yeah I think we want to be I think we have to be careful not to get too general about some of these things I’m not sure to negotiate- you know what a broad I’m something that’s very broad. Actually probably needs to be pretty detail. Hi Haapsalu Lee and I think that’s what I’m really getting at is a little more detail would gavel helpful in these circumstances You mention about attends burn analysis and the real estate market conditions didn’t. Feel that that was quite included in that and what do we look for right Councilor like what it what are we looking for water And you know sort of the red flags that all this is a good thing right board well what what I was looking for and what changed in the course of the presentation of the material- is- when what what what were the things of. The market. So like the hospital they knew that there was. Demand for that and they built- is there demand for the medical office building I don’t know how how soon do we think there would be- I’m guessing that they do think there is near term demand. But I think what. What what moved around what where I saw that what Rick what was the red flag for me was that in the revenue projections I saw. From January and housing in in early phases and I think during particularly during cold and there’s a huge amount of demand actually for housing- and so okay that makes

sense to me but then. In the month in the financing plan that I saw August and shifted housing out to later development and they had- some aspects of the read. Work Cummings. That didn’t market perspective. I wasn’t sure how that worked but again I never saw how that turned to their revenue so I wasn’t sure like if we had a different phasing if the phasing worked out differently than they expected what would that mean for the money that the districts would throw off. Unless just again we want to understand what we can afford versus what we need and uncertainty interest understanding when the uses come online and then how they generate incremental how that accumulates- either is a cumulative- hot it’s used to reimburse or as something that covers that- bonds. He meant every year when it is you just want to have some sense of certainty. And- and again their numbers were very aggregate for the ity and you know- the calendar. Complete expert Las Cruces my understanding is that the city is on fire not not here not in this location. So to look at aggregate numbers that look really good and then say oh that applies to everywhere is also not correct this is a much trickier market location right. Your greenfield strapping so good point he had denied so shouldn’t we have had bad expert. From the hires we made it- financially and the outside attorney to give us that information I. Felt that we got. Or did they hit so I guess what I’m saying is that I would recommend that if this comes to us again that. That staff be very deliberate and what they tell us how they tell as the numbers of folks that they include in this. That each person has their peace to- present so that I know that every staff member department had has had their their say Whether it’s positive or negative sure we want this all of us want a week week but- we have to protect the city and I never felt that that. Order very rarely did I feel that that was happening we had one or two presentations of questions were asked like I’m asking you- it depended on the south side folks to initiate raising their hands right and- answering those questions and that really never happened and I think. Everyone of our department has to include those outside influencers have a role and responsibility. To play in their their present presentation right. Yeah I mean I think- you know again in fairness to staff- you could be a really seasoned professional having worked in New Mexico for many many years and be really good at your job and still never have seen it to districts before yeah. I’m not right now so- but I would also say that- no different the of the of the consultants that were hired as I understand it without an attorney and I don’t know anything I didn’t I never spoke to the attorney- I did speak up as I said earlier to your- a financial adviser who. Again ran the rand the feasibility numbers onthe districts- and he raced he he raise some Concerns but it was sort of my feeling always was that they were sort of a sides on his part she didn’t feel like it was but he was actually asked To do. So I think that hard and- hi the track of getting good help is knowing. What you don’t know or at asking the right questions tonight I would just say you know that you could have you you might has gone to the financial adviser and sad. Just look right you you know like a you know he he did a- to discredit he did ray the red. Times that it is not clear. So I don’t I’m giving a very murky answer there about what kind of expertise you need but it’s specialized it’s not and absent maybe review that every department. Should and could way yet but it’s still there might still be some gaps and so if you don’t look at the whole thing so you could have said. You could have hired the financial advisors say take a good close look at these revenues justice makes sense Browse not use asked so. Okay that’s my understanding. Yeah no I have. That that stopping a please don’t get this as- I Over critical. I just I just

felt like- number you know. You can under the circumstances and- I don’t recall any attorney or father- the condiments or- or and- lawyer lawyer and- finance since eight. Dean dean red flag this this and this this is what consider this is what this means that’s my challenge here and right. We need to be able to be burnt forthcoming yeah sure we know I. agree the thing in front of us so that we can make the best choice for us I completely agree. Thanks to our page here and that those are all my questions and comments Sorry about that council Abeyta-Stuve. Thank you mayor- and thank you dina and to my fellow councilors and for asking but we in depth questions and I’m really going to I think most of angles he have been able to see here today I’m so with that I’m just gonna make a quick. And comments and the one thing that kept I never and bothering me when we had our very first meeting and we touched upon it so I just think that it’s something we really need to consider in the future one worth looking at different types of. Opportunities but what you’re trying to deal with it- and that does come with the work first at the very beginning of the documents that we were shown a lot of the hires and the jobs created for that in construction which we knew were going to be a one time event- and then and another large portion was that with- D. our retail and those tech items and we know that Even before Kobe we are going to have to have some serious discussions on what those industries look like because they are changing on a global market that we have. To for that’s right. And I brought up the concern the very the- I’m wonder what- formation demographic we’re going to be using to you. Today this of information at the bottom did you really get answers quite at the time and the other thing I suppose since my district has a hospital. That has all the buildings that are being used- what I have. Lost everything is in its areas and now I potentially happy I did section with a very similar demographic makeup that this new section is going to happen so how do we without any kind of balance that you as well because it given fun- but now we have a new area and it doesn’t have it. And now. Even beyond that with the hospital now I’m gonna have had yep town right next to it that is going to be made into a similar structure so there’s going to be a lot of competing interests. And so I think really having a and thorough analysis on kind of those and community impacts for the different districts and shell- box. I would be very beneficial. So in that about it so thank you mayor and thank your you never. Appreciated your- thank you I mean I do think that serve and- point about look out the develop again in this idea of what it Is it worth it to us do we want this is the developers coming forward with the proposal- for something now. And you may say well we don’t really think we need another hospital I think some some of that was Attempted to be addressed in some of the material- that was put forward and but that that kind of thinking I think is important some of its objective it’s not easy to. Answer yeah But I think it’s a- good one Yeah The- good okay yeah council sort. Councilor yes just a little patient. Okay no problem one sure you don’t fall asleep or something. Okay well while he’s getting things put together. I’m I’m a list of course I’ve been listening. Is there saying supply make a quick trip to the wild W. C. on one of the things I can Terry news that. Our there are about a medical office building I don’t know what you all think that I’ve been there and I’ve seen a medical office building led to stories or something like that- maybe this you’re talking about another one but the only one ideational building that they were going

to build there- was planning to was some kind of physical therapy building. So as far as I know the face office buildings built. I thought. I secondly- the hit that this that ten would pay. And or be useful for the funding for be useful to build something that the city doesn’t have and **** list I’m- well I’ll say this When it comes to streets The City doesn’t pay for building new streets that’s not what we do is a rule it should be something brand new that we’ve never done before- yeah the only thing we pay for some arterials that are missing or redoing streets that are not finished or- are not built out to city standards. So that’s that’s what I want to bring out mayor. Okay okay well I appreciate the council okay so let me just on the see the doctor Martinez were you able to find. A general idea of what number of jobs that we thought it after the full build out that is not just initially but- you know I seem to remember that there was looking at- over two hundred million dollars of new infrastructure over around twenty five thirty years. What did we- all other thank you for as and the people did you want to jump in on that. And we were just looking for the number of jobs the total jobs is that the developer thought they were gonna have after the- full build out. In fifteen twenty Twenty five years later. Right just to make a comment just had a couple of thought so just wanted to. Be sure but stops altered over to result it just gives you has that information If that’s what you’re looking for right now. Yes I would- if she does if not- mayor pro tem sent me some that we just use it as as as as an example does have to be thing exact. So I read in there approximately maybe after the full build out maybe thirty nine okay stock markets. Mr mayor have technology this is the sentiment thing is for the record- so we had over a thousand jobs and about two hundred and fifty million dollars of investments. Okay so the developers thinking that over here any time that. Dead dead they could bring a thousand new jobs. Correct and the assumption was that- about 15% off that was going to be- pull from other areas- from the city. I’m sorry 15% Correct okay so then now it would be eight hundred and fifty. So from the forecast. So if we were to take twenty five twenty one million divided by. Eight hundred and. Fifty let me just make sure meet make sure that’s right US twenty four seventy and eight hundred and fifty Well now I’ve got some to twenty one million. But as by eight hundred and fifty so. Why don’t we just make it simple can we go back to that to that screen that had all the streets names the Samaritan yeah- I was just gonna put up this. Sure I mean sure miss greening garam You see there is the employment numbers here’s the total the direct interaction and then here’s mine website run chart Wrong projects. There it is yeah you so let’s just make this kind of simple or or since it’s about jobs and job creation so I took the twenty one million scenario number one by the by the eight hundred fifty new jobs. So why couldn’t we just say okay if you want to build Samaritan drive. Which is eight hundred seventy five and you want to get reimbursed for it- so you take the- the eight hundred and seventy five. Eight hundred and seventy four thousand five hundred. Divided by them 240-007-0050 so that means that bring in thirty five new jobs and will pay the and will reimburse you. So in essence work were reimbursing% for were in the- for this amount. But it’s almost like we’re paying- I mean a real Yeah economic developer someone bring in these jobs these are new jobs not jobs that were

transferred over that many of us worry about. But new jobs that- that are new to the city And that’s not easy to do. And then that way they were puts the onus I mean because if they’re really and this kind of all. Matches the what mayor pro tem was talking aboutit this is a measurable event here- you want you want to get reimbursed for this particular street or drive. Then you just use us as a factor and- get a completed and when you bring in thirty five new jobs you get. You get reimbursed for that project That way there it’s kind of like- and if you want the full amount that you were asking then you bring in the eight hundred fifty net new jobs. So simple. Through the ten we don’t go through any of. Right yes that would be outside the gym yeah we just do it we just do it and- economic development Issue and I think that’s something there that the anti donation clause allows us to do If we use- different monies for that to bring in. New jobs and you know just something to think about so anyways if all you wanted to say some. The New Right mayor council can you hear me yes. Thank you mayor you know I just the- but I think you’re already moving for to some do appoint so- but when I just wanted to make a couple comments if I. If I can. Well as you know- this this there’s a lot of a lot of this and have all of this happened before I came and did the job but- when I got here I was. I was grilled by everybody. I was grilled by people in the community business community even the media. My first interview here about- about the ticket and what was wrong and- wanted me to play. You know play it by Monday quarterback- you know I think I gave him a we usually answer and just about everybody justice legally answer that. On you can be. The City just distancing from it but I do have some thoughts that I want to share- as we’re going through- so I I’m very familiar with with tax increment deals no we don’t do to aids and we call them we come page in Utah we don’t do them either. And a to use one of the main reasons we don’t do them is. Usually city councils are opposed to- relinquishing their authority to a board number one- that makes these decisions- the second thing is there are there are some. Some concerns- when we’re just talking about G. R T. even were even even if we’re doing jobs- we’re looking at jobs. The problem is when we don’t know. We don’t have a leakage study we don’t know what’s what’s leaving or what work retaining- even if we create new jobs we could just be diverting G. R. T. money from other areas of the city and so therefore- you know putting the other parts of the city at risk and so usually when tax increment deals are done in it from my experience you focus on property tax because that’s truly that’s real increment that comes through right that’s valued at wasn’t there to begin with- the other thing the only reason we would look at sales tax we are G. R. T. in this case. Is the for their word the City’s of we have this urban sprawl we have City’s ever back to back just as large as we work and there was leakage at and we were gonna try and get that back into the city. And so they’re they’re couple concern just from the- in general just just from. Just from using tubes in general. And so we’ve been we’ve been looking at different ways I know I know our economic development in been looking at Different ways to. To come up with a plan if this came forward again looking back grip looking at- just use an MRI to apply it to of- and so I just wanted to mention- the other thing I. Think I wanted to mention is up. It having having a- drama ed duking digging things out is not uncommon in if in details like this up I’ve been I’ve been in negotiations with- things may or may not have been thrown across the table. But then we do get out and we come back and work a deal I mean that’s that’s is economic development right you just. Just to get out- about Sometimes it’s past the point of. Of reconciliation or or- or coming to a book deal point

But from what I see I’m an outsider coming in. I think we can get a deal done. And so- looking at what we want as a city and I think protecting the interests of the City another thing. That and I know I know everybody most of you share the same sentiment it’s another members pretty strong against a bond right. I really I really was opposed to any bond that came for that. That’s funded anything private. Because that’s a form of pre performance as opposed to post performance of everyone to take risks with that and I know I know that was with respective point for the mayor and many of the council. And so I think if we have these parameters in place. With these primers in place **** said we can go back I know our economic development team of in the been looking at Different ways to come back with this without the trade- we talked about this being rushed the first time again I’m I’m an outsider looking in. I know sometimes these these things move fast. And ever there are based on you know you gotta get the base year- in order to get the incremented so you gotta you gotta approved just by a certain period of time. It’s a sometimes they get they get You know do you. You come through I understand that. But I guess my point is- buried council if you want to deal to get done you can give us a great and then still get a crack at it take a crack at it- we could try or- if this is something that. You know I I’ve heard. Both both makes it if this is not something that you don’t want to. Look at it but it is something that you don’t want to look at it all tonight actually throw the ticket out and we come back with the- with something. Other than the two that you make to do and I think you’re already a step ahead merit I you’re already talking about the appoint without to do so The New point on my part but- I just feel like I need to say that I came in talking big about economic development right that’s one of my main focus is and- I’ve been real by. By everyone I come in contact with. And I feel like I kinda need to sure. Sort of sort of assessment that I’ve made since I’ve been here but- I definitely know we can we can make a deal we can get a deal done. If you want us to take To go back I know. I’ve I’ve personally walked. As part there and I walked around. That but- after may pretend done that I. Was at the hospital. I went and I. Looked at myself it’s a very important part of our- our city. And the development their- their of is something that will definitely benefit are city so- we’re hoping as staff that maybe we get some. You know if this is the business. If you want us to go back and move forward on something that we can come back with we certainly can do that- but- again mayor and council just just kind of wanted to share those stocks and I’ll stop there or- for the sake of Not not continue to ramble but I did want to share that with you thank you no I appreciate that he fell I- and all of you know I’m gonna gauge from. From council here but- you know I don’t. I’ll be very candid. I’m the kid worries me. There’s just so much information in there so much legislation I mean you know this thing about of six years the- you can turn over. I don’t know if we necessarily need that. I think this amount here and what they’re asking for something that we can if we shifted to economic development. And bringing in jobs new jobs I don’t think we need that ten- I mean. Now I’m I’m not saying just do the deal I’m interested to hear what the parameters are and bring it back to council and let’s. Let’s let’s- where You know what I mean I’m interested see that to see what exactly it is. What what could be proposed and what could be done. In a live via. You know I don’t want to just sit there vacant. You know it’s a nice piece of property I think it is an important part of the of the area of the city. But I don’t want this is what I don’t want I don’t want I don’t think I want to do that. I don’t want to reimburse the developer for infrastructure they put in because and what we do with the other developers that have done it as well- but I do want to see jobs new jobs not transfer job not. Not people moving from one hospital to another you know. The New but I want to see new people come minutes. And then- and new tax rules because that you know we get seventeen cents on the dollar every time that they put in something new And I’d like to see that so if you think you can buy those Granddaughters I’d like to see what we have to say and then council have a hance to now you know hello again and see exactly how it’s gonna affect us and how we can make work and-

what are the downsides if anyone of the upsides. I think that’s I think that’s- and plus you get a chance to see you and your team and in action. Thank you mayor and I will say. You know that focusing on G. R. T reimbursing G. R. T. back in perpetuity I think you really run the risk of diverting resources from other parts of the city and so any deal that has to do with G. R. T. giving back to the developer to reimburse as opposed to property tax. You’re gonna run the risk it’s gonna be hard even if its jobs even if it’s a- the indicators are jobs. If you’re pulling jobs from other side of the City because that they’re going bankrupt it’s going to be difficult to. To follow that’s right they give we get. And I get I don’t know if those you know if this is something there being able to but I. I do think a focused mainly on property tax. Would be sub the parameters that we- we stick to- certainly not. Not bonding right- and putting the City Abaris through- you know through to any debt it is something that I promoters that I use of any deal I and I would never like to do that so. I’m interested to see I think council would be to I mean especially there’s no downside to us. Where thirty we don’t find anything you know and we bring in new jobs. That’s what we that’s what we give that’s when you might the movida That’s what we do I mean that’s what we’d like to see and then you take care and by the way there wasn’t a blighted area it was a nice area of the golf course. And it’s unfortunate that no one took care of it. In the meantime but I mean I know this on your your problem but anyways I just thought I’d share that with you because it wasn’t always like that it was a really nice place. Okay well let’s see what the rest saying- we got to council. That please keep your comments are somewhat limited you know we’ve spent a lot of time on here- we’re we’re we’re not we’re I think Ifos volunteer to do this and- you get a chance to see how he employment as team work. So you’ll are council Bencomo Thank mayor- gets appreciate that you called- you jumping in and- that’s really important I just wanted to comment on Younkers stores clean about the hospital comes are you are right there is the hospital in another building. However there is plan to build out another of like women’s clinic. A rehab place. And then I think there’s the- third. I tech medical building a- remember- there’s two now but you but there are more. Plan yeah. Yeah right Yeah there’s not a clear for that and then I. Yeah honestly Mr from the reason I was disappointed you know several months ago wasn’t because it was a great deal or whatever it was mostly because we don’t have. Vaps based in negotiation to figure something out when and so for me I’m I’m personally open to that negotiation I think. That after today though do that presentation I am a lot more clear about- Brinkley how scary. That is yes and I think that that’s it’s a very big deal and I- you know that’s why I asked and the conversation on it I can’t thinking well it the city even in the right place to negotiate and so. I’m I am okay if we start elsewhere- I also think though that we should put some measurable. Not measurables but some like what kind of jobs I want to make sure that our jobs that are paying people while they’re helping people build wealth- and then are approving a quality of life. Good attempt Thank you I’m I’m in agreement for of Mr political back with staff and put something together I just don’t want us to forget right it’s part of the original town site there’s been a lot and it is a very important in- ladies. And what I was feeling like as as the developer presented information that they were leaving the surrounding area behind right here you’re going to do the all this development in there and get reimbursed. With no real Improvements anywhere else and so I just don’t want us to forget that it it needs some rehab. I’m renovating all around that Apodaca area to include Madrid and there’s some really- I think businesses that would appreciate that and residence around there that would appreciate- that that helps for sure. So and then to your point you know the streets are built. Their streets there Samaritan and hard and they’re all built. To get to the hospital frankly so- yeah but then the new jobs and- first

bring in new jobs that’s unusual jobs but not just any job right high paying jobs we- build up from that hospital the health- I think arena. There’s a lot there I think that could be said about that so yeah thank you mayor. Also Sorg did you have some. Yeah I just wanna say I agree- let’s let the city manager PT are gonna go she ADA. Well Mr in the suit The Cosby do I mean put some parameters on the see what they have to say. You know I think is important I mean we all want to of course that’s not all part of the deal okay all right now and watch it given carte Blanche to snow now. If you never know comments. Yeah Maring and one thing I do do want to say to justice- again I. Coming in outside outside coming in- I do have a little different opinion on. You know the work that’s been done up until this point I do think that- staff Councilor know the council. I was wise in in- if you don’t if you’re not. As far that’s not uncommon. America is not uncommon to. To just so you know I throw it out and what will I mean that that you’re acting in the best interest of the city. At the from what you know and I will say from what I understand I I’ve- I’ve gone back. Just to understand the background- I do think staff has worked really hard on me I really have a different opinion at of some. That I think they’ve gone through- back and forth with the developer and presenting it it’s not an uncommon process. Up to get us to this point- least from not from my experience and it’s it was in the right of the council to say you know what we don’t we don’t get it right now We’re we’re talking and we’re not gonna move and will take six months will take a year But with will throw it out and again. When I go back to I don’t want to. Make it fit make it seem like I have all of coming here and hero save the day. We do have an excellent team right we do have extra economic development team that is competent. And they’re working on- they’re working on incentives right now they have been looking at incentives just in case we were going to do the deal. And so they’ve given me a list of tools that are Specific to New Mexico that I had no idea about- but I’d be glad to go back in so it is certainly going to be a team- effort. Better councilors we come up with some parameters To reset back to. What it looks like you’re leases. High has a pretty big back. And INEC not develop so. There’s a lot of the a lot of weight and there’s a lot of. Pressure on you guys And then you got Dr Martinez and doctor brown is. So easy to come back with something the sounds pretty decent. For sure Thank I would think. Council bosses. Thank you mayor- thank you- manager city manager info for your comments sorry- category more I think. When it comes down to it one of the reasons I also wanted to continue negotiations is. I mean we’re looking at an infill area the City right something that we’ve all decided we want to prioritize for redevelopment. I we created a blueprint. We have an investor who’s interested in that doesn’t happen very often let’s be honest right for some of our master plan. Things that we have. Right now. And then we have you vote and we’ve kind of given him a mandate. From to bring economic development opportunities to the city and create jobs. So if we can do it here. Then it’s going to be impossible to do it anywhere else- at you know is considering all the factors that we have played. Setting this place up for success being in such a central location Having already some investment having streets developed Residential neighborhood right we got customers all around you know for you know of any potential retailer other types of. Employment that exists there. So I appreciate people’s comments and continuing this conversation- rather than just saying you know this we don’t want this and then let’s just leave it alone for.Another ten or fifteen years and have become more blighted. So I just want to put that out there I’m- totally supportive of all of their options but- I think this is a good case study for usto both. Let you for be successful and do his thing. What we hired him to do- and then- are staff also unit continues all the talent that they have. And to fulfill these priorities of both fulfilling the Apodaca blueprint. Out bringing in new jobs and redeveloping- in inner part of the city- where do not a lot of developers just aren’t going right now so just wanted to provide those comments as well. And fully supported to exploring all those options Thank you mayor thanks

Councilor so there you go you for so I guess if I was a sum it up. It’s like hitting the reset button so this is just sort of forget about the tear don’t you think about that anymore now we’re just we’re focused now on economic development. See what you can see what they have to say about I mean and the we’re talking job- your throne someone. There the west. Westminster west mesa industrial park. That’s good may. In order to get rid of them and see. Yeah okay all right great well good and I think that’s a- majority consensus so- thank you for everybody and dina. Thank you for your presentation that really helped us a lot and- and allowed us to refocus change are are or direction and go after economic developments that of. Outages here howto reimbursethe developer for the stuff that you for the church now it’s a whole different ballgame and like I said we get the reset button and now we’re just going to focus on that and we appreciate it very much great thank you All I Want to say the privileges. All mine and I do I think you do have great staff I really want to second. What you said so. I think all the- are there it’s just to make work. Thank you Okay thanks everybody take care bye. At the holidays the holiday. All rights are last item is. Three point three contracting issues it brought and due process Jennifer **** brown. City attorney good evening mayor and city council- we’re going to just limit it to just it right now because that one is fifteen slides and- we’ll just reschedule the rescue can the contracting is a big is a big one so much. All right. I’m I’m going to ask Christine Sears share her screen all introduce I think He’s are city clerk she is our- designated custodian of records are still go through a lot of This is part of our be information that will be presenting to city council periodically regarding some of the issues that you all have to deal with. As you know inspection of public records act is different for us we have a lot of requests and we did a lot of requests. You can advance thank you so you will find the inspection of public records act in section fourteen dash to dash one of state statutes and if you would like me to for that you any time just let me know. And basically this the statue reads that every person has a right to inspect public records of the state with very limited exceptions. And there is a very important quote that. Is used when describing. Records access to public records is one of the fundamental rights of forty two people in a democracy even when there is no statute or common law right to inspect and copy public records board members of the public the opportunity to keep. A watchful eye on government. You can thank you In New Mexico the Mexico courts favor disclosure public records and over recent years the legislature has continued to expand the emperor- it’s also been expanded a great deal by the court The New Mexico Supreme Court and the court of appeals. You will see- as there used to be about I believe ten exceptions different that is been narrowed down to about seven and one of the very broad exceptions has been receipt almost completely eliminated You can advance thank you Still alarm state and you can find this also in the Attorney General compliance guide and we can also provide copies of that to you or links to that Anytime you needed just let us know. And didn’t live legislature has recognized that a representative government is dependent upon an informed electorate. It is the public policy of the state that providing people with information is an integral part of the routine duties the public officers and employees One of the of an important thing about the act is that it does not require a public body to create a public record. We are only responsible for the records that already exist. I’m going to let Christine takeover and I just want to emphasize the city clerk’s office is in the legal department and Christine is. Are city clerk and she is are designated

custodian. Of records so Christine if you want to jump in. Holidays I was having trouble and meeting. Can you all see the power point and no Barbour says she’s having trouble staying its on make sure it’s not black. Though it Okay okay I just wanted m make sure we get into it- so public public r records are defined a s documents p papers letters boo maps tapes photographs rerecordi- documents or materlsls characteristics and so that’s all maintaeded by our office- the city clerk’s office. So some oththe exceptions to the inecection of public records- thin t that we don’t releaease our medicalececords letters of reference and- concerning employme matters of opinion in personnel files- student files wldld be for on CLC PS One Forsmanececords that reveal nfnfidential sourceses or meththods- anything that as ptt of the confidedential materials act. Trade secrets are attoryy client privileged information well as business pla o of hospitals. Tenical response premiums that are- developed by oupopolice department. Didnd fires missnn this i includes t last fr r of socll sececurity mbmbers-veverything but the year of birth- account infoatation those are just a couple- a of cour anything elels So when a person reque a public recdd from ushihis is made by- an or or writt reesestndnd this is dede t to te desiatated custodian which shll inclu the nameddddress anane s s that weanan contacthehem rerdrding their request- a those city cle’s o office w alall adesess because a tt o o our recoss are. On ectctronicsee ca a g given access atat w On the wtttten r request show up e particararity- an exale t this City cncncil m minuteserersus somebodydy who request to se month of Nombmber t twentntyhe twen.. That’s scicific and wewern get themhehe rorords of eigyy request they don’ need to llllSa us t r reann why they’re making tirir class they can request whevevert t is that thths a e cucuments-pppply to reque thcicity clerk’s oicice w we do- underworld rueuest. S as rerecort clkk. An i inetetur Iavave city dedesr to proce a all recdsds a t the recordsananag f o ouritity is Li h headdSuSure that you hav ale aiails from her requestin stf-f-ndnd that’s w t that i So a as c conrtium w we cang coingpp to a doarurur for ofoffi c cy cents papageWean also ararge f c cosf f dololoading device On Mndnd forhehe storage acalal ctt of the dice s if we pp e ju drivehehe pcece of the jujumpe g e e reques. S S iffeeerere ceceiv a reqstst a i is n we havaveo o for the rueuest to atat ctotodian i if w kww w who e quques s so forxalele if werere gngng t to fofor atat ququeso o the concncer ioror reesest y k kwwhahat w hav nonott e them ifrfromhe n noticication inn s rerdrdinththeir reesestSoSo a tho p aiailaee foror t plili a andkeei

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Councilor- sometimes you c c answer thenformation over the phone-e- sometimeshat we dodo is ‘ll have to come inn and loooo at it- we’ve also h hone take pictures wheneveve they can’t affo so t tre are vario ways wee work with them- to hehe them get the records thatny thank you so o muchhristine I I g for thanan you and w what a a library is opepe they can use the-e-nternet. Nearing councnc thatat with the mayoyo said is exactly correct we- and o o library staffff Has reallyy gone above and beyondd honest you agagts and provided. Assistance in using the computer- I know that rob and he stiti had also were theyidn’t have the people and download it so. I’m areect h beyond to help. Thank you mayor okay thanknk you- Jennifif Anyone else who. Doesn’t’t believe in and letting the childreneno he took. Okay guess that’s about isn’t it Jennifer Yes thank y y okay well good but meeting thank you for everyone- without your ten Motor adjourned Sorg that Second b bwho. What else are Bencomo I can hear that one okay motion made by council Sorg second by asking Carmel Christine we called role please This is on the motion to adjourn the work sessions can service TV yes. Vasquez. He took off. Eight his peanut butter and jelly sandwich Council Bencomo yeah. Cancer’s sort yes Sir Flores I can answer. Two hundred. Yes mayor yes okay were turned I will leave- were turned at five thirty three PM and then we’ve got our agenda setting meeting Not everybody and I. A Christmas. Media center meeting next Monday Councilor yeah I would. Why get a head start I’m ready when you are okay right this is the agenda setting meeting for December thirty first seating December twenty first twenty twenty city council meeting number one not consent one nine consents to consent to consensus three consent. Three can sense board nine consent for non consensus five nine consider I’ve known consents six nine non consent six mountains 7% seven consultants eight consent eight concerns. 18% I none concert ten on. Ten consent and eleven on consider. Remittance centers twelve- others wounded dropping what’s the it gave you the wrong one. The trump this morning. What- I and number eleven as in the ordinance to repeal replace chapter fifteen yes this is the is the number one. That’s number twelve Almost oh my gosh. Okay so I have number one as resolution authorizing the city tax affairs budget items. Yes and number two I have as a resolution supporting participation in our- yes number three I have- resolution authorizing to accept various grants and awards. Yes number four I have a resolution approving contracts for the city- fire station three. Yes number five I have a resume For a design build for the- do you jogging biking trail. Yes for six I have a resume for transfer of. Under license yes seven this resolution or- professional service agreement Yes eight I wrestle for- extend purchase of electronic fuel cards yes nine Reso authorizing the settlement with on your account on MRO. Yes Sir the Rizzo reaffirming the city support for various legislative priorities. Yes and then-

eleven we added one. Okay so you added eleven yeah it’s a resolution approving the road runner transit public transportation agency safety plan. Okay we’ll just put in our hands okay. Perfect all right thank you. The Tonight