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This notice of public hearing Thursday,
August 27th, 2026, 6:30 p.m. Part one.

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The city of Cachula City Council will
conduct a public hearing on Thursday,

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August 27th at 6:30 at the Old
Stockman's Bank building located at 101

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North Front Street, lot 10, Cula, Texas,
78014. This is a public hearing in which

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city business will be discussed, but no
official action will be taken. A quorum

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of the city council will be present and
the minutes kept. So, we call this

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hearing to order and we establish
quorum. City Secretary, please call

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roll.

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» Here,

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» here.

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» Here.

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This is uh to conduct. This is number
three. conduct public hearing

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considering establishing a guidelines
and criteria governing tax abatement for

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economic development prospects in Cula,
Texas. David,

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» so the general hearing for prospects
like it says it's not specific to Cipher

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uh digital even though it was prompted
by Cypher Cipher Digital. This is for

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any for any business that wants to come
into Cthulhu that's a major business

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that we have the city has an actual
process to actually um take their

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application deal with everything that
they need to be taken care of. If

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they're looking for a tax abatement or
something like that, the city has an

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actual process to do it. Um currently
the city has no process to handle any

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type of project of this magnitude. So,
uh this is what the hearing is for.

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on on the public hearing for tax
abatement. Any any information or did

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anybody sign up to to speak on this one?
Is there allowed to speak on that on the

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hearing?
>> Yes. So, this is for you.

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» Thank you.
>> Okay. Absolutely. So, this is a for

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public comment. this is for you and how
you feel about establishing guidelines

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and criteria for uh the governing body
for tax abatements and economic

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development prospects in Cula. Again,
this is not about Cyper Digital. It's

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about giving the city count the city
council established guidelines to be

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able to follow in the event of
companies, factories, businesses coming

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into Culla. Uh, I think you're well
aware that our airport is almost there.

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Where's Mr. Paige? There he is. Our
airport is almost there. Almost ready

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for the big big planks. And um, this is
for some of that. This is for some of

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that growth as well. Not just cyer
digital. Okay. So, if you would like to

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speak on in public and and in public on
this hearing, you're welcome to do so.

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Yes sir. You may approach
Mr. Elio Ramirez,

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Mr. Wright, Mayor Luna, and
distinguished members of the city of

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Cula Council.
Uh, thank you for allowing me to address

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a few things here. Uh
I want to uh start with something that

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happened in 1984 on an issue that the
counselors were faced with

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and uh it was a very difficult decision
uh that happened and what it was was

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that the city of Cula in its gas
department was never balancing out

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and so the water department was always
having to bail out the uh uh the natural

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gas department. And the city
administration

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decided that they would propose an
increase in the uh rate for natural gas

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and it appeared that everybody was in
favor of it in the council. And my

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question was
concerning the indigent population and

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the elderly. And what I said was,
I have a good job and I'm guaranteed by

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the state of Texas a yearly salary
increase, but the elderly who live on

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social security and the indigent
population that gets money wherever they

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can, they don't have that opportunity
that I have. So what's going to happen

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to them when we raise the t the rate for
natural gas?

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And so all of the uh counselors
were looking at an audience full of

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people that were really concerned about
getting a t a hike on their their fee

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for natural gas.
Everybody being a native of Cula except

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me.
I moved here 47 years ago and I was a

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mayor pro Tim at the time. And so when
we put it to a vote in front of all of

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the natives of Cula,
the city council members who were all

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natives of Cula voted to increase the
fee and I was the only descending vote.

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My my purpose for saying this is
we are public servants. You all are

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public servants. That means that you
serve the people and I don't need to

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tell you that because you all are very
intelligent.

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So when we have a hearing like this and
we have an audience

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uh for a hearing on tax abatements,

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have we taken enough time and more than
one hearing

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to find out exactly where the community
and the voters and the residents of the

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city of Cthula are at that particular
time because those are the people that

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we serve when you are in a political
seat. Okay? And like I said, I don't

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need to tell you that because y'all are
intelligent people.

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So, one hearing in in in as far as I'm
concerned may not be enough to be able

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to make an adequate decision. Now the
the last thing that I want to say on on

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regarding that meeting was that as an
outsider to Cotula, I had only been here

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for four years at that time.
I saw Cutula council members

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vote against their own people.

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And so I went home and I thought that I
was going to sleep well,

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but I didn't because I realized that we
were not living in a community that was

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united, that understood each other, that
wanted to work in the best interests of

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everyone,
not just not just trying to have a

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government that was balancing out at
audit time. Okay, that is important.

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Don't get me wrong. I was in an
administrator in in school for quite

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quite some time and we had to face
audits also. And I know that when you

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get an audit and you have an area that
is not balancing out,

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people look at you with cross eyebrows.
Why not? Aren't you the ones that take

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care of that? So the thing is to as in
that case in 1984, what other

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alternatives are there? Instead of
proposing something immediately, why

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don't we take a step back and take a
look at what we presently have and who

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we serve and thank God for the blessings
that we have instead of looking into the

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future and trying to strive for
something and jump into the lake without

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knowing how deep the lake is or what
lurks inside that water.

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But I trust because I've known
practically everybody here. I think the

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the only one that I haven't known for
too long is Mr. Alvarado and Mr. Wright.

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I had the pleasure of talking to him
today.

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I think that you will always
represent

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the people that you serve, your public
servants, and I know that you will never

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forget that. Okay. Thank you very much.
That's all I wanted to say. It's a it's

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an important thing as far as I'm
concerned to always have knowledge of

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who you represent and what their desires
and wishes are and how it's going to

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affect them. Okay. Thank you very much.
Appreciate it.

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» Thank you, Mr. M.

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» So, I was so excited to get it started
and get this meeting and uh hearing

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going. I I forgot to mention to you that
we do have a threeminute rule. It's it's

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on the your number four there if you
picked up on agenda. So, we do have a

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speaking term of three-minute rule. Of
course, I'm not going to just cut

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somebody off. So, Mr. Alfa, go ahead.
Come in, sir.

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Yes, sir. Mr. Mr. Sam, can you state
your name for the record, please? Alam.

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Uh,
mayor councilman,

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one of the things that I heard uh that's
to me is sort of disappointment is that

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uh and this concerns the AI center
is that decisions have been made and

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true to what Mr. Ramed said it seems
like action has been done uh before

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contemplating what the community might
be feeling and uh wonder what's going to

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happen.
I'm fortunately I uh uh participate in

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the evergreen
uh water district and the farther north

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we go by now everybody knows that uh
those centers are a statewide problem.

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the water uh resources that we have are
limited all over the state.

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There's a lot of questions of where this
water is going to come.

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The solution that came out of uh uh
making this thing reality is they call

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it waste water that comes out of the oil
industry.

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Well, the question comes uh where is
that water as we can we're concerned

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about this community? How much is there?
And what happens if they run out of that

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and do they have the privilege of
drilling their own wells into our equip

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right now? The farmers and the ranchers
need water to irrigate uh the farms and

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ranches.
If that water is usable uh and can be

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cleaned naturally, uh it becomes a vital
resource for our communities and uh the

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people that uh produce uh the products
that come out of the ranches and farms.

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I do not know what commitments this city
has made so far,

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but just the attitude and what I heard
at the beginning of this meeting, it

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seems that everybody, the council is
already pro that they want to see this.

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Let me tell you that this is probably
the most serious and dangerous situation

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that has confronted this community
in all the history of

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We're facing with a very critical and
dangerous uh decision making at this

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point.
The reason that this uh that we have an

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audience now is because there is concern
that we're making a mistake in uh

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promoting that kind of activity.
It could run this community into

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oblivion.
Thank you.

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» Mr. Meyer,

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Council Mayor, Mor Lunar, Mr. Right. As
uh I understand it, this is the hearing

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for the abatement and then we will be
heard again for item seven in a separate

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hearing because I want to talk about
both.

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» I want to talk about the data center. I
also want to talk about the abatement.

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» Do you think you can sign up for that?
That number is good.

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» Okay. I did seven, but I didn't know
they were two separate

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deals. So, can I talk about the
abatement then now and talk about the

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other?
This this is a public hearing for the

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consideration of guidelines and criteria
for tax abatement and economic

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development.
>> This is just abatement doesn't have

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anything to do with item seven. Okay, I
can speak on that in the next area.

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Okay. One of the things about tax
abatement as a business owner in this

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town is it affects us. We get no
baitments. We pay full taxes. Have paid

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since 1988.

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There was no abatement back then. There
is no abatement along the way.

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Businesses that are viable, businesses
that can survive in this community and

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in any community,
I don't believe should get abatements.

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They should be able to generate enough
income

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so that they can pay their taxes.
Because what happens if you give them

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abatements is everybody here is a
taxpayer

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and we're paying the taxes for them to
make money.

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Okay.
I don't believe that is fair and right

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to the community that has been here for
years to the ones that have supported

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the community for years.
When you start giving abatements to new

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businesses to try to get them in, how
long will they last?

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Will they actually be here long term?
The data center is a whole another ball

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game. You give them obeyments and that
will probably be the end of some

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businesses in this community.
It's going to raise the tax rate to all

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the businesses.
It's going to raise the cost of water,

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the cost of power. It's going to raise
all the cost. And it's not all the

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research I have done in them. And I'm
part of another board from the valley

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that does technology and is involved.
And I've been to probably 20 AI

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um
deals uh conferences about AI and what

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they do, what it does. The data center
is a whole another ball game. Abatements

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are not if they can afford to come in,
they shouldn't get an abatement. They

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should be able to afford to pay the
taxes. Giving abatements is not a good

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thing for the city. It's not a good
thing for the taxpayers cuz no matter

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what the taxpayers are paying the taxes,
they're paying for everything. The

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ranchers now the citywise it's the
people in the city. I live in the in the

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county,
but I own business in the city and I pay

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more taxes. And I own a house in the
city, but I can't run for council

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because I own a house, but I don't live
there.

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So, I'm kind of stuck. I got to pay all
the taxes, but I don't have any real

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say.
Figure that. Okay. So, when you start

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talking about doing abatements, you need
a policy, but that policy should be that

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they have to repay that down the road.
That policy is if you want to give them

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a startup of a year,
even maybe two years, you got to realize

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you can't raise the tax rates to
everybody else to make up for the cost

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that you're going to incur for them
coming into business here. I don't want

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to exceed my three minutes.
But I think

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» I think you need to really
think about when you're making these

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abatement policy,
you have to consider where is that money

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going to be made up. Where is it going
to come from? Because it's going to cost

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more to the city and the ones that are
going to pay it all these taxpayers,

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all the businesses that are here. We're
going to be paying it for them for two

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years for the infrastructure that it's
going to take to do it and then it's

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going to be higher. So, we're going to
continue to pay a higher rate even

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though they're going to have to start
paying and they'll never make it up. It

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can't be made up because it's already
gone and in the past. It's just going to

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make the rest of us to where eventually
we won't be in business. And it will

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become a ghost town just like the oil
does to town.

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It makes him a ghost town eventually.
>> Thank you all for your time and for your

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consideration. Please consider that as
you think about what you're doing.

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» Thank you.

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» Thank you all. Thank you all. Th this is
this is still a hearing structure. Okay.

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Um I've heard that I' I've been told
that that no outburst and no uh control

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that were regulated by 312. Steve, do
you want to put some clarification on

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that in their time limits? I I will I
will get to you, Mr.

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» I I think the only thing that wasn't
said is this is a statuto requirement.

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This isn't something that the city made
up. So in order to even consider having

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a policy, you have to have
>> the law says one hearing. So and this

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was Jeff's not who I think may be in
>> absolutely if I didn't make that clear

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and then that's what that's what clarity
is.

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So le I do want to allow everybody to
speak. So stay within your time limits.

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I don't want to cut anybody off. I'm
part of you. Uh Andy, do you want to

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come up?

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» I appreciate y'all listening to me. I
just want

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» My name is Andrew Allen, Andy Allen. I
just want to say to y'all, I hope y'all

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think long and hard about this data
center deal. I It's going to be right in

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my backyard. I'm going to deal with the
noise, the lights, the smells,

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and I mean, literally, it's going to be
in my backyard.

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My our property is right next door. I'm
I'm between the little church and Lo, so

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it's going to be I'm going to have to
deal with whatever mess y'all bring in

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there. I'm going to have to deal with.
>> Allan, do you have something on the

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guidelines and criteria for tax
abatement?

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Do you have anything on tax abatement or
establishing guidelines?

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» I just I I've got things I've got to go
do and I just want to get y'all to

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understand if y'all have I'd like to be
notified when y'all have meetings on

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that data center cuz I want my input on
it.

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» Thank you. Thank you

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» again and and I just reestablishes if
anybody wants to speak it's it's to

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consider and establish guidelines and
criteria governing the tax abatement for

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economic development pro prospects in
Cula Texas. Do we have any other uh

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public comments?

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again. Any other public comments?

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The third one. Any other public
comments? If not, I'm going to

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» head I put my name on there in general
just to

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» for for
hearing. Okay.

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» Thank
>> go ahead, Mr.

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» Yes.
>> You have to go up.

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I'm talking

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Whatever face
is the right place.

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00:27:14,880 --> 00:27:21,600
any other comment on u economic
development and prospects for city of

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Cachula.
Last call. Any other comment on

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establishing guidelines and criteria?
If not, this hearing is a this hearing

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is adjourned.

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All right,
we're going to go right into the time is

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6:52.
>> I'm sorry. I didn't ask for a motion. We

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just went to a German. Do we need a
motion? We have a motion to adjurnn the

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hearing.
>> Do I have a second?

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» Second.
>> All in favor of a mo of uh adjourning

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this hearing say I. This part one.
>> All opposed.

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This meeting, this hearing is adjourned.

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» Okay, here here we go. Before we start
before we start the next meeting, if you

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are if you're going to want to do an a
comment, an citizen's comment or an

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00:28:24,240 --> 00:28:31,760
agenda comment, please sign up. I'll be
picking those up momentarily.

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um and and and and then I'll put some
old criteria in a little bit, but if you

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00:28:33,440 --> 00:28:39,440
did want to sign up for public comment,
please do so. Also, if some of you would

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like to move here on the side of the of
the wall, we you can do so. Uh you're

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00:28:42,559 --> 00:28:48,440
welcome to do so. I want to make
everybody as comfortable as we can.

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All right.

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00:29:01,039 --> 00:29:11,840
This is a notice of regular meeting.
Thursday, August 27th, 2026,

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6:30 p.m. Actually, it's 6:54. 6:54.
This is part two of the meeting.

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Again, we're still in the same location
at the Old Stockman Bank on Front

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Street. This meeting is now called to
order. We'll have roll call. City

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Secretary, please.

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» Here,
here,

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00:29:38,640 --> 00:29:44,320
» here,
>> here.

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Moving on to number three. That's a
pledge of allegiance. Please stand.

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198

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14
number

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14

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and say a prayer in the name of the
Father, Holy Ghost. Father, we ask that

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you be here tonight with us. We ask that
you give us the wisdom, the guidance,

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and the fortitude to run this meeting
accordingly and that all our citizens

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are heard. That our questions are
answered, Lord. And that we follow your

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guidance that you be in our mind, in our
speech, and in our hearts. In Jesus name

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I pray.

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Now before I move into the word, I want
everybody to be heard. That's the bottom

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line. I want everybody to be heard. If
somebody has already answered a

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question, we'll move on to the next one.
So, as many of you can can see, remember

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that this is just a citizens comment.
It's not going to be an interaction with

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00:31:39,360 --> 00:31:46,159
Cypher Digital or with a council.
Council can't answer you. What we can do

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is take your information and try to do a
public public hearing or a public uh uh

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00:31:49,600 --> 00:31:57,840
workshop or or a town home a town a town
hall meeting at that time. And there

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00:31:55,919 --> 00:32:01,519
will be a town hall meeting, right?
There may be two, right? However many

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00:32:00,159 --> 00:32:06,159
you need, that's what we're going to
give you. Okay? So remember, don't be

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00:32:04,240 --> 00:32:11,120
frustrated from the council cannot
answer you. You're going to get 3

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00:32:08,320 --> 00:32:16,159
minutes. Please try to keep it short,
please so that most of you can get in

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00:32:13,600 --> 00:32:23,919
and we're going to fly around with you.
I know it's a little uncomfortable here.

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So, please I do want everybody to be on
and just know that they can actually

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and we will

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00:32:45,039 --> 00:32:50,080
So, so for the minutes, please also
remember to state your name when you

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00:32:48,320 --> 00:32:54,240
come up to speak. All right. Thank you
very much.

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00:32:52,000 --> 00:32:58,720
Again, we're going to go on to uh number
four. Number four is uh the citizens

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00:32:57,279 --> 00:33:02,080
comment, and you have the three minutes,
and we're going to try to address each

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00:33:00,159 --> 00:33:08,519
and every one of you. The first one on
my list is uh Miss Sandra Sidell.

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» Good evening. My name is Sandra Sidell
and I am the owner of Lasell Western

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00:33:13,919 --> 00:33:21,200
Linda Morenna Boutique and LM branch in
Kachula. I stand before you tonight not

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00:33:18,960 --> 00:33:28,240
only as a business owner but as someone
who h has invested my livelihood, my

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00:33:25,200 --> 00:33:35,120
future and my faith in this community.
Born and raised in Kachula, a small town

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with small town values, rural character,
and a country way of live life. Sorry,

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I'm nervous.
Those same qualities

300
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are why many families, ranchers,
retirees, and business owners choose to

301
00:33:48,799 --> 00:33:58,159
live and invest here. Today I
respectfully ask the city council to

302
00:33:54,559 --> 00:34:03,279
cons oppose a proposed data center.
Kachula is not a major metropolitan area

303
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and many of us do not want to become
one. We value the peace, the open

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spaces, ranch land and close-knit
community that makes this small town

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special.
Largecale industries

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developments such as data centers bring
significant changes that can permanently

307
00:34:22,320 --> 00:34:30,800
alter the character of a rural
community. My concern is not simply

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00:34:28,800 --> 00:34:36,800
about one project. It is about the
future direction of our town. Once the

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00:34:34,079 --> 00:34:41,359
development of this scale is approved,
there is no going back.

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Future generations will live with the
consequences of decisions made today.

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Many residents have questions about
water usage, electrical infrastructure,

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00:34:49,839 --> 00:34:58,000
noise, traffic, environmental impact,
and the long-term effect on property

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values and ranching operations.
These concerns deserve thorough answers

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00:35:01,359 --> 00:35:10,560
before any commitments are made. I also
believe our citizens should have been

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00:35:06,960 --> 00:35:16,160
informed and invol included much earlier
in this process. Transparency and public

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00:35:13,119 --> 00:35:22,240
involvement are essential when decisions
have the potential to reshape our

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community for decades. While economic
development is important,

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not every project is a right fit for
every community. growth should support

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00:35:29,839 --> 00:35:37,280
the vision
residents have for Cula, not replace it.

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I understand that some may see the
project as an opportunity to address

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financial challenges facing our city.
However, financial pressure should not

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00:35:44,480 --> 00:35:50,640
be forced
should not force us into decisions that

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could permanently change the identity of
our community. We must carefully weigh

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the long-term cost against shortterm
benefits. Tonight, I ask the council to

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00:35:59,119 --> 00:36:08,960
put the interests of Kula residents
first, protect our rural heritage,

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protect our natural resources,
and protect the quality of life that has

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made our town worth investing. Cachula's
greatest asset is not a data center. It

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00:36:19,280 --> 00:36:29,160
is the people, the ranching heritage,
and the unique way of life. Thank you

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00:36:25,119 --> 00:36:29,160
for your time and consideration.

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Next on the agenda is uh Robert
Martinez, but this is for general

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00:36:39,839 --> 00:36:44,200
comments. Okay.

332
00:36:45,599 --> 00:36:53,680
» My name is Roberto Martinez. Uh I live
here in Gula, as you all know. Uh, I've

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00:36:51,040 --> 00:36:59,200
had some questions.
Last uh couple of times I was here, I

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00:36:57,119 --> 00:37:03,760
had a question about the city light. It
got repaired today. I asked the city

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00:37:01,200 --> 00:37:08,800
secretary to call me. I've yet to
receive a call from I got a call from

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00:37:05,280 --> 00:37:13,800
Joey. I don't consider that her. Another
thing,

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00:37:10,800 --> 00:37:13,800
um,

338
00:37:14,160 --> 00:37:23,280
you're there to work for us.
Don't hide behind the glass.

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00:37:20,720 --> 00:37:29,839
And another little right off the top,
Mr. Ayella, I use social media to say

340
00:37:26,960 --> 00:37:35,280
what I say, but I did my research and
I'm voicing my opinion and I'm being

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00:37:32,240 --> 00:37:40,320
honest about it. I'm not lying to no one
or nobody.

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00:37:37,920 --> 00:37:45,680
I don't want to be lied to. I want you
to not myself, but everybody that's here

343
00:37:43,440 --> 00:37:51,440
needs to be heard when we go to that
office from somebody. If we ask for the

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00:37:49,200 --> 00:37:56,960
city secretary, she needs to call. If we
ask for Mr. Wright, we need to ask Mr.

345
00:37:54,400 --> 00:38:02,960
Wright needs to answer our questions
when in a timely manner too, not

346
00:38:00,320 --> 00:38:06,880
4 days from now because that's what has
happened.

347
00:38:05,280 --> 00:38:15,000
I mean, that's I don't think that's a
right way to run a business.

348
00:38:09,520 --> 00:38:15,000
You get paid a good salary to answer.

349
00:38:15,839 --> 00:38:20,680
That's all I have to say about that.
Thank you.

350
00:38:28,240 --> 00:38:33,240
» Gilbert, are you still good? You were
number three.

351
00:38:33,359 --> 00:38:41,000
» I have Mr. Anos on number seven. Are you
good, sir? You want three minutes?

352
00:38:44,480 --> 00:38:54,960
I think that I already went on record
and um and standing uh with a decision

353
00:38:51,520 --> 00:39:01,520
that this center should not occur
and I uh explain it why but I do have a

354
00:38:59,200 --> 00:39:05,680
question on abatement if we're going to
give a payment how are we going to make

355
00:39:03,359 --> 00:39:12,400
any money
you know we're actually giving away all

356
00:39:08,800 --> 00:39:18,880
our opportunity to make this uh uh cost
effective and also uh uh benefit from it

357
00:39:15,839 --> 00:39:23,920
if it's going to happen. A baitment is
not the solution.

358
00:39:21,760 --> 00:39:30,160
I think that they perhaps uh I don't
know who uh who owns that property,

359
00:39:28,640 --> 00:39:35,280
but those are the people that are going
to make the money.

360
00:39:32,240 --> 00:39:38,599
We do not get anything if we don't tax
that facility.

361
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I have Mr. Myers here back on the list.

362
00:39:56,960 --> 00:40:04,160
Mayor, Mr. Right, Councilman.
In discussing the data center, I have

363
00:40:02,320 --> 00:40:09,200
numerous questions that you need to
consider in this having been on the

364
00:40:06,960 --> 00:40:15,440
Winter Garden Groundwater Board for 29
years and I've had this discussion with

365
00:40:11,760 --> 00:40:21,280
Mr. Wright in his office numerous times
um is the fact that we're losing 10 foot

366
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of water
head every year.

367
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Okay? So that means the wells, the
pump's got to go down because the

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water's going away. It's being utilized.
Effluent water is a great thing, but it

369
00:40:34,480 --> 00:40:42,880
can only be used for certain stuff.
Also, the oil field waste has a lot of

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00:40:40,240 --> 00:40:47,920
uh minerals and a lot of salt and a lot
of things in it that will clog up any

371
00:40:45,200 --> 00:40:53,520
cooling system they're using. These data
centers use tremendous amount of water.

372
00:40:51,440 --> 00:40:59,359
You need to do your home home research
on this. Don't hear what the developers

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00:40:56,800 --> 00:41:04,319
and what the the the people that want to
build the data center are saying. Please

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00:41:01,920 --> 00:41:10,160
do your homework. What Mr. Ramirez said
about we trust you to do what is right.

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00:41:08,079 --> 00:41:16,240
We trust you to investigate what is
right, too. We trust you to do your

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00:41:12,960 --> 00:41:22,240
homework and make sure that what they're
saying is true. Because I found with

377
00:41:19,520 --> 00:41:27,680
most things and most businesses in my 65
years of of life is that if you tell

378
00:41:25,119 --> 00:41:32,640
them put it in writing, put your name to
it, you're willing to pay penalties. If

379
00:41:29,599 --> 00:41:36,640
not, oh no, we can't do that. We can't
guarantee it. But you're telling us you

380
00:41:34,960 --> 00:41:41,920
can
the water tables are going down? Okay.

381
00:41:39,280 --> 00:41:48,880
How much water is there? I don't know.
We got 2,800 ft right now that most

382
00:41:45,440 --> 00:41:54,720
wells are. And maybe water's sitting at
7 800 feet depending on where you are

383
00:41:51,359 --> 00:41:59,280
throughout the whole water district, but
everybody's pumps are burning up just

384
00:41:56,480 --> 00:42:02,640
like the cities. And that cost you a
tremendous amount of money to lower it.

385
00:42:00,960 --> 00:42:07,440
Are they willing to help pay for some of
that? You know, we we talk about

386
00:42:05,359 --> 00:42:11,839
abatements. Well, what good is that
going to do when the cost to everybody

387
00:42:09,040 --> 00:42:15,680
else goes up? Okay. When this data
sitter comes in, it's going to use a

388
00:42:13,680 --> 00:42:21,520
phenomenal. I would like to know exactly
how many gallons or how many barrels

389
00:42:18,960 --> 00:42:26,400
they're going to use a day. And I don't
want to hear it based on 78 kilowatts or

390
00:42:24,560 --> 00:42:31,440
based on this or that. I want to know
what's the total use. And if you exceed

391
00:42:29,200 --> 00:42:35,599
that, what are you willing to pay?
What's the penalty?

392
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Because it affects every one of us. Even
though I don't live in the city, it

393
00:42:36,800 --> 00:42:44,640
affects me on my ranch. It affects me on
my place. The other thing is the power.

394
00:42:42,880 --> 00:42:49,119
They use a phenomenal amount of power.
You see all these big power lines going

395
00:42:46,240 --> 00:42:53,280
in. Part of that goes to there. Maybe
not this one, but when will it come? Are

396
00:42:51,520 --> 00:42:58,000
we willing to be like San Antonio where
the power goes out every day? I mean,

397
00:42:56,079 --> 00:43:02,319
that happens in San Antonio just from
regular stuff. Is that what's going to

398
00:43:00,560 --> 00:43:06,000
start happening here? Do we have the
funds to make sure that in the grid

399
00:43:04,560 --> 00:43:10,720
we're okay? Are they willing to
guarantee that it won't affect the the

400
00:43:09,359 --> 00:43:15,920
community at all? And if it does,
they're going to pay to correct it all.

401
00:43:13,359 --> 00:43:20,240
I don't think so. You won't get them to
sign that contract. They should have a

402
00:43:18,400 --> 00:43:23,440
contract that their feet can be held to
the fire. How many employees? Well,

403
00:43:22,079 --> 00:43:28,400
we're going to employ a whole bunch of
people to build it, but it's all

404
00:43:25,839 --> 00:43:33,440
computers. You have a few maintenance
guys and the security and the technology

405
00:43:31,680 --> 00:43:36,800
that it takes to do the maintenance on
that stuff. Do we have the skill level

406
00:43:35,440 --> 00:43:41,119
in the community or are they all going
to come from out of town and work just

407
00:43:39,359 --> 00:43:46,400
like the restaurants are having to do
now, the businesses are having to do is

408
00:43:43,760 --> 00:43:49,920
bring people into town because nobody's
working in town. They don't want to

409
00:43:48,560 --> 00:43:54,880
work. I don't know if y'all tried to
hire people lately. But let me tell you,

410
00:43:51,520 --> 00:43:59,599
as a business owner, it ain't easy
>> because they don't want to. And so, I'm

411
00:43:57,359 --> 00:44:06,079
sure I'm about out of time. I just think
you need to really look at what is the

412
00:44:03,680 --> 00:44:12,720
benefit of this data center and do the
research yourself as individuals. Yes,

413
00:44:09,839 --> 00:44:15,680
AI technology is going to be out there.
Okay. And it's going to use up a bunch.

414
00:44:14,480 --> 00:44:20,480
I understand they're wanting to build
one. Somebody want to build one fer to

415
00:44:18,079 --> 00:44:23,599
that's two in the county. But how much
money? And I heard well they're going to

416
00:44:21,920 --> 00:44:28,800
just move across the road, not do the
city. Well, that's another huge if the

417
00:44:26,960 --> 00:44:34,880
county goes into it, we need to be on
the county because I don't see this

418
00:44:32,800 --> 00:44:39,440
being a benefit to the businesses of the
community, to the to the citizens of the

419
00:44:37,599 --> 00:44:46,480
community.
It's really not a benefit to our county,

420
00:44:42,800 --> 00:44:49,880
our city, any part of us. Thank you'all
for your time.

421
00:44:52,960 --> 00:44:57,319
We have Jose Ar Gonzalez.

422
00:45:06,720 --> 00:45:13,440
» Uh, good afternoon, Mayor. Uh, city
council. Mr. Wright had a couple

423
00:45:11,680 --> 00:45:17,839
questions and I know they can't be
answered. I just wanted to pose these

424
00:45:14,800 --> 00:45:22,079
questions. Um, almost reiterating what
Mr. Meyer said. I was on the phone with

425
00:45:20,000 --> 00:45:26,640
uh Mr. Derry Gardner the other day uh
yesterday as a matter of fact and and he

426
00:45:23,680 --> 00:45:32,560
had a question that he wanted answered
or at least proposed was the ranch land,

427
00:45:29,440 --> 00:45:37,200
the power lines, fiber, the noise, you
know, what amount of devaluation in the

428
00:45:34,400 --> 00:45:44,079
land would would that cause by bringing
in this uh data center? Another question

429
00:45:40,560 --> 00:45:49,200
was uh how many local construction jobs
would Cipher or any other data center

430
00:45:47,280 --> 00:45:53,280
create?
outside of the local jobs that you know

431
00:45:51,520 --> 00:45:58,560
would happen during construction, what
permanent jobs will remain once

432
00:45:55,280 --> 00:46:03,839
construction's over because as Mr. Meyer
said, there's computers and and I teach

433
00:46:01,520 --> 00:46:06,880
this stuff every day to to middle
schoolers, right? There's computers that

434
00:46:05,200 --> 00:46:14,880
are taking care of the majority of the
work. So, how many permanent jobs will

435
00:46:10,640 --> 00:46:20,240
Cipher or any other data center company
commit to? Right. As Mr. My said, put it

436
00:46:17,040 --> 00:46:26,160
on paper. How many will they commit to?
What minimum capital investment are they

437
00:46:22,720 --> 00:46:29,760
willing to make for, you know, this
abatement? And then again, what's what's

438
00:46:27,839 --> 00:46:34,240
the payoff, right? Is it going to be
paid back in a year? Is it going to

439
00:46:32,240 --> 00:46:38,400
never happen if, you know, they just
kind of close up shop? Uh what

440
00:46:36,480 --> 00:46:44,640
commitments will be made to train and
hire local residents? Workforce

441
00:46:41,520 --> 00:46:48,000
development is is crucial. Again, if
you've ever gone to a restaurant, uh

442
00:46:46,640 --> 00:46:53,280
most of the people are not from here.
They're from Larredo. They're from Ciso.

443
00:46:50,640 --> 00:46:59,440
So, what what uh you know, what
long-term

444
00:46:56,079 --> 00:47:03,440
workforce development will be done on
you know, the behalf of the company,

445
00:47:01,520 --> 00:47:07,440
whether it's Cipher or somebody else.
And then again, water long-term, you

446
00:47:05,440 --> 00:47:11,839
know, effects.
The water here, it's it's crazy. I

447
00:47:10,640 --> 00:47:15,440
remember being a kid and you used to be
able to drink the water straight out of

448
00:47:12,960 --> 00:47:19,599
the tap and now it's a little funky,
right? I know we get tests that say it's

449
00:47:17,920 --> 00:47:25,599
all good, but you know what's going to
be the effect on our water? Um, not just

450
00:47:22,720 --> 00:47:28,720
drinking, but you know, as Mr. Meyer
said, the water's dropping every year.

451
00:47:27,440 --> 00:47:35,760
So, what's going to be the effect on
that? How what are the u

452
00:47:33,040 --> 00:47:39,520
the companies proposing to avoid some of
those negative impacts? And then uh you

453
00:47:38,560 --> 00:47:44,480
know, are they willing to pay
competitive wages if there are any

454
00:47:41,680 --> 00:47:49,160
permanent jobs? And uh that that's
really all I had. Thank you.

455
00:47:52,960 --> 00:47:57,839
» I'm sorry if I messed up this name, but
I believe it's Miss Alvarez that wanted

456
00:47:56,079 --> 00:48:02,760
to speak on number seven. Miss, did you
sign up?

457
00:47:59,760 --> 00:48:02,760
» All right.

458
00:48:03,920 --> 00:48:10,880
» Good afternoon. My name is Daniela
Alvarez. Um, I just moved back down here

459
00:48:08,480 --> 00:48:15,440
about two and a half years ago with my
son. I want to leave a legacy, but how

460
00:48:13,680 --> 00:48:18,400
can I leave a legacy behind if there's
no land behind? There's noise

461
00:48:17,280 --> 00:48:23,200
infrastructure that we're going to have
to worry about with these data centers.

462
00:48:21,119 --> 00:48:27,599
My question with the data centers is
with the noise pollution, how are we

463
00:48:25,119 --> 00:48:34,000
going to sustain living in near
proximity with the heat access that's

464
00:48:29,839 --> 00:48:38,800
going to be pushed off around onto our
our town? It's already 115 degree

465
00:48:37,040 --> 00:48:42,960
degrees degrees here. Are y'all planning
to do anything with the like building a

466
00:48:40,880 --> 00:48:46,559
pipeline to move out to other cities
where they don't have warm areas?

467
00:48:44,880 --> 00:48:49,760
According to my research, it's they're
saying that they're trying to build

468
00:48:48,000 --> 00:48:54,160
greenhouse infrastructures. We're
utilizing the heat or the condensation

469
00:48:52,640 --> 00:48:57,760
that's coming off of it. The water
that's coming and producing off into

470
00:48:55,760 --> 00:49:02,319
different counties is not sustainable
and live like you can't bathe in it. You

471
00:48:59,839 --> 00:49:06,960
can't feed your your cattle drink it.
They can't drink it.

472
00:49:04,559 --> 00:49:13,839
There's a lot of counties that are
inquiring about how are we going to have

473
00:49:10,960 --> 00:49:18,960
sustainable meat if a lot of cows are
have still birthed animals and how can

474
00:49:17,280 --> 00:49:23,280
we live off of that if we don't have
anything that's going to protect us from

475
00:49:21,040 --> 00:49:27,520
that. How can we move forward and leave
a legacy behind for my generation and

476
00:49:25,040 --> 00:49:33,079
the generation behind us?
That's all I have to say.

477
00:49:29,599 --> 00:49:33,079
» Thank you much.

478
00:49:37,280 --> 00:49:44,839
And again, I'm sorry I can't read the
last name, but is that Anna?

479
00:49:40,960 --> 00:49:44,839
Oh, thank you, ma'am.

480
00:49:45,920 --> 00:49:52,240
» Yes, my name is Anna Salasar. Um, maybe
a lot of you don't know me, but my

481
00:49:50,319 --> 00:49:58,000
husband is a lifelong resident of Cula,
Texas. His name is Carlos Salasar Chal

482
00:49:54,079 --> 00:50:04,319
Salasar. So this um thing I just found
out about it yesterday I believe and I

483
00:50:01,040 --> 00:50:11,359
thought well you know I don't think I
would approve of an AI center knowing

484
00:50:08,319 --> 00:50:16,880
full well that the amount of water they
take the electricity and all of that.

485
00:50:13,920 --> 00:50:22,960
We're a small community and why would we
want to bring something like that here

486
00:50:19,200 --> 00:50:29,760
when we already have you know drought
here? We already, you know, don't we

487
00:50:26,880 --> 00:50:34,880
really there's no benefit to the city or
to the county and I own property in the

488
00:50:32,400 --> 00:50:38,400
county. I'm concerned. I have fruit
trees and I'm like, okay, well, if it's

489
00:50:37,040 --> 00:50:42,480
going to take all that water, what is
going to happen to me? You know, are my

490
00:50:40,960 --> 00:50:45,920
trees going to go dry just because
there's a data center? And not only

491
00:50:44,400 --> 00:50:51,839
that, but then they also get an
abatement. Really, these people are

492
00:50:49,280 --> 00:50:56,160
millionaires. They have tons and tons of
money. They don't need abatements and we

493
00:50:54,240 --> 00:51:00,599
don't need an AI center here. And that's
all I have to say. Thank you so much.

494
00:51:05,119 --> 00:51:11,280
» We have one more uh public comment uh
from Miss Mary Alice Garcia. She dropped

495
00:51:09,520 --> 00:51:20,040
this off. This is a release in a
conveyance of property adjacent to 605

496
00:51:14,720 --> 00:51:20,040
Gulf Street in Cula, Texas. Uh

497
00:51:20,160 --> 00:51:27,319
is that the comments you want to make
it? Miss uh Mary Alice Garcia here.

498
00:51:29,680 --> 00:51:36,079
All right. With that being said, if uh
there is no other comments and no sign

499
00:51:33,280 --> 00:51:40,880
up,
Mr. Allen spoke already and he's already

500
00:51:38,880 --> 00:51:46,240
Yeah.
>> Where's Mr. Allen?

501
00:51:43,359 --> 00:51:51,040
You you'll sign up for me afterwards.
Just state your name. Come on.

502
00:51:49,520 --> 00:51:58,160
Well, everybody knows me. I'm Monica de
la Cruz. Hello, mayor, city councilman.

503
00:51:54,480 --> 00:52:02,559
Um, where do I start? Um,
what I know I don't know what y'all are

504
00:52:00,319 --> 00:52:07,359
going to decide and I don't know if
y'all are going to really make sure that

505
00:52:05,280 --> 00:52:11,520
this is not going to affect us, but I'm
pretty sure it is. I'm more than 100%

506
00:52:09,920 --> 00:52:16,960
sure that it's going to affect us in a
very negative way. Okay? Not just the

507
00:52:14,079 --> 00:52:20,800
electricity, the water, the, you know,
the waste water that they say that

508
00:52:18,720 --> 00:52:24,400
they're going to use. That waste water
does not come a long way. You know, they

509
00:52:22,640 --> 00:52:28,480
have to filter it and clean it and then
run it through the M and evaporation is

510
00:52:26,640 --> 00:52:32,880
going to be caused. So, they're going to
have to end up using our water. They're

511
00:52:30,559 --> 00:52:36,160
going to have to tap into the city water
and they're going to drain the the water

512
00:52:34,559 --> 00:52:40,079
table. You know, we're very low on water
right now. Mr. Alvarado had already

513
00:52:37,760 --> 00:52:44,160
posted that the water table has
drastically gone down. you know what

514
00:52:42,559 --> 00:52:50,240
what are y'all thinking about that
bringing this the massive uh data center

515
00:52:46,559 --> 00:52:52,880
here I'm just so frustrated because you
know you guys aren't thinking about the

516
00:52:51,440 --> 00:52:57,119
citizens you guys are just probably
getting a big bonus and and you all are

517
00:52:55,040 --> 00:53:00,720
just you know itching for money
salivating over the money and not

518
00:52:58,880 --> 00:53:05,440
thinking about what is is it going to
affect us you know that that's what I'm

519
00:53:03,599 --> 00:53:09,359
just oh I'm just so frustrated about
this decision that y'all are trying to

520
00:53:07,119 --> 00:53:12,960
make from under us you know you guys
didn't aware make it aware y'all didn't

521
00:53:11,040 --> 00:53:18,960
put it on on the city counsel on the
city uh website. We were were informed

522
00:53:16,319 --> 00:53:22,880
by Mr. Alvarado. You know, y'all didn't
post it on the city. Y'all were, you

523
00:53:20,800 --> 00:53:26,400
know, we're transparent. No, y'all
aren't transparent because y'all are

524
00:53:24,160 --> 00:53:31,040
keeping all this from us. You know, we
live here, too. We have houses here. We

525
00:53:29,040 --> 00:53:35,839
all own houses here. I have my
grandchildren. I have my kids here. And

526
00:53:33,520 --> 00:53:41,200
I'm just frustrated because you guys
don't listen. You You guys don't listen.

527
00:53:38,880 --> 00:53:45,520
you know how how frustrated that is. You
know, I'm just like, oh, you know, I

528
00:53:44,000 --> 00:53:50,000
don't know what it's going to do to the
city if you all decide to bring it here,

529
00:53:47,839 --> 00:53:54,880
but I know it's nothing good. Nothing
good can come of this. And you all know

530
00:53:52,800 --> 00:53:58,000
that. Y'all know that you guys it's it's
a bailout for you guys. Okay, that's

531
00:53:56,880 --> 00:54:02,079
fine. You know, yeah, it's going to
bring a lot of money, what not, but what

532
00:54:00,240 --> 00:54:08,000
good is that money if you got to put it
back into the infrastructure into um you

533
00:54:05,440 --> 00:54:12,559
know, adding more power lines? you know
that cost is going to land on us. You

534
00:54:10,640 --> 00:54:16,079
know I I hear it from Lidle people that
have already infrastructure I mean a

535
00:54:14,240 --> 00:54:20,160
data center over there they're already
dealing with all these effects you know

536
00:54:17,839 --> 00:54:24,960
that the the light bills are going up
the water uh rates are going up and then

537
00:54:22,720 --> 00:54:28,559
they have to put more money into the
city because you know they have to

538
00:54:26,960 --> 00:54:32,400
upgrade everything. They always have to
keep upgrading.

539
00:54:30,240 --> 00:54:36,160
Everything has to be all the money that
y'all are going to be getting is going

540
00:54:33,920 --> 00:54:41,359
to be going back into that into, you
know, more more infrastructure, more,

541
00:54:38,800 --> 00:54:45,680
you know, more uh fixing everything to
upgrade it. And it it's just it's not

542
00:54:43,839 --> 00:54:49,119
it's not going to end up well. It's not
going to end up well for all of us.

543
00:54:47,680 --> 00:54:53,200
We're the ones that are going to get the
hit. And how are we going to get uh how

544
00:54:51,839 --> 00:54:56,480
are we going to get that money to pay
our bills if it increases? Who is going

545
00:54:55,200 --> 00:55:01,200
to help us? Are they going to have a
separate account to help us if the the

546
00:54:59,280 --> 00:55:05,839
rates increase? If our bills, you know,
skyrocket and uh everything goes up, how

547
00:55:03,520 --> 00:55:09,520
are we going to get protected? You know,
you guys are going to benefit from it.

548
00:55:07,520 --> 00:55:14,160
Yeah. Okay, y'all are going to have the
money to, you know, do other things, but

549
00:55:11,760 --> 00:55:18,079
what about us? We're the ones that are
going to have to suffer being pay more

550
00:55:15,920 --> 00:55:21,920
bills, pay more water, you know, light,
everything. You know, it it's going to

551
00:55:19,760 --> 00:55:26,880
hurt us on the long run. And I know you
guys probably don't care, you know, and

552
00:55:24,240 --> 00:55:30,960
and I know y'all want to make this, you
know, city grow and whatever, but at

553
00:55:28,960 --> 00:55:34,079
what cost? At what cost? It's going to
hurt not not just, you know, the

554
00:55:32,640 --> 00:55:38,640
citizens of here in Gautula, but the
ranchers like he, you know, Mr. uh, you

555
00:55:36,720 --> 00:55:43,680
know, had said that it's going to hurt
them, too. Not I mean, not just us,

556
00:55:40,640 --> 00:55:48,799
everybody. Even you guys. Even you guys,
you know, you y'all are going to get

557
00:55:45,119 --> 00:55:52,720
hurt on this. Why? Why? Whose idea was
it to bring it here? We don't know

558
00:55:51,040 --> 00:55:56,240
anything about these things, you know.
We do know that they consume a lot of

559
00:55:54,880 --> 00:56:00,160
water. They consume a lot of
electricity. You know, we're going to

560
00:55:57,599 --> 00:56:03,359
get hit with all that. I mean, it's up
to you guys and you all are in charge.

561
00:56:01,920 --> 00:56:08,400
You know, what can we say? We're just
telling you what our dilemmas are and I

562
00:56:05,920 --> 00:56:11,599
hope you all take it into consideration.
>> You're going to have a lot of pissed uh

563
00:56:09,839 --> 00:56:15,799
citizens. That's all I can say. Thank
you. A lot of piss piss citizens.

564
00:56:21,440 --> 00:56:28,240
We're going to be moving on to item
number five and this is to discuss and

565
00:56:25,839 --> 00:56:31,240
consider the financial report for August
2026.

566
00:56:36,480 --> 00:56:46,200
Mayor, council members, good evening.
I will be brief. I don't think anybody

567
00:56:42,319 --> 00:56:46,200
wants to hear me today.

568
00:56:47,040 --> 00:56:55,720
So, your first report is your sales tax
report. The city will receive tomorrow

569
00:56:52,720 --> 00:56:55,720
161,944

570
00:56:56,000 --> 00:57:06,040
the month of August for the year
for the first 11 months of the year.

571
00:57:02,400 --> 00:57:06,040
We're at 1,727,636.

572
00:57:11,359 --> 00:57:18,960
Your second report is the hotel motel
tax collection report. For the month of

573
00:57:16,880 --> 00:57:23,000
July,
the city received $188,438.

574
00:57:23,200 --> 00:57:30,200
So we're at $742,030
for the year.

575
00:57:31,119 --> 00:57:38,839
The third report
is a summary of the statement of

576
00:57:35,200 --> 00:57:38,839
revenues and expenditures.

577
00:57:39,200 --> 00:57:50,680
So the first column the general fund
had revenue has revenues through July of

578
00:57:47,680 --> 00:57:50,680
3,366,239

579
00:57:51,200 --> 00:58:00,359
expenditures of 3,336
767 for net profit of 29,472.

580
00:58:01,200 --> 00:58:06,680
The water sewer fund has revenues of
1,941498

581
00:58:06,880 --> 00:58:15,960
expenses of 1,427
524 for net profit of 513974.

582
00:58:16,880 --> 00:58:28,799
The gas fund 31429
in revenue, $31370

583
00:58:23,839 --> 00:58:34,240
in expenses for net profit of 1,159.
And the solid waste fund has revenues of

584
00:58:31,520 --> 00:58:38,280
87,783,
expenditures of 777,692

585
00:58:38,480 --> 00:58:43,079
for net profit of $30,91.

586
00:58:43,680 --> 00:58:53,119
The rest are your smaller funds.
And for the month of July, the city

587
00:58:50,240 --> 00:58:56,119
issued accounts payable checks totaling
$311,462.

588
00:58:57,599 --> 00:59:04,799
Are there any questions?
>> Yes sir. I want to know how the hotel

589
00:59:01,359 --> 00:59:09,839
motel uh is expenditures are more than
what's coming in from the hotel motel.

590
00:59:07,920 --> 00:59:13,240
» That would be uh the improvements at
Plaza Flora.

591
00:59:18,319 --> 00:59:25,520
» So on the plaza we we've already
received some bills on this and we

592
00:59:23,440 --> 00:59:30,799
haven't done any work. It's kind of an
ongoing project. Uh

593
00:59:28,799 --> 00:59:35,640
the council for the engineer well
engineering and for the the

594
00:59:35,920 --> 00:59:42,160
sorry well they they had the the
community effort that they did to bring

595
00:59:40,319 --> 00:59:48,520
people in to help design the how they
wanted the park and then the engineering

596
00:59:44,240 --> 00:59:48,520
is what we're paying for at this point.

597
00:59:49,920 --> 00:59:55,200
» How much is the how much is the
engineering part of it? I don't have

598
00:59:53,599 --> 00:59:59,359
that answer right at the moment. I'd
have to get that Dr. J.

599
00:59:56,799 --> 01:00:02,640
» Those expenses are early on in the year.
>> For the month of July, we only spend

600
01:00:00,880 --> 01:00:10,760
like $19,000
on the hotel.

601
01:00:05,920 --> 01:00:10,760
» 19,000 uh for the month of July.

602
01:00:13,680 --> 01:00:21,680
» So, a lot of those expenses were I I
believe like the final expenses on the

603
01:00:19,599 --> 01:00:24,240
bathroom project and those type of
projects.

604
01:00:32,079 --> 01:00:39,559
Hotel had a very healthy fund balance to
start the year.

605
01:00:35,359 --> 01:00:39,559
» The fund balance was 1,689,000.

606
01:00:41,440 --> 01:00:48,040
» So we can spend up to that amount above
the revenue that we receive.

607
01:00:55,200 --> 01:00:59,799
Is there any other questions for Mr.
Flores?

608
01:01:00,880 --> 01:01:04,040
» Thank you.

609
01:01:11,119 --> 01:01:18,960
» Next agenda item is going to be the
approval of uh minutes. The first uh on

610
01:01:16,319 --> 01:01:24,720
6A, you have the minutes for emergency
meeting on Friday, July 24th, 2026, 3M.

611
01:01:22,960 --> 01:01:29,319
Is there any amendments or corrections
that you can see that need to uh be

612
01:01:26,319 --> 01:01:29,319
addressed?

613
01:01:31,280 --> 01:01:39,280
If we see nothing to amend or anything
else or fix, um do I have a motion to

614
01:01:35,839 --> 01:01:42,480
approve July 24th, 2026 emergency? Do I
have a second?

615
01:01:40,799 --> 01:01:46,559
All in favor of approving the minutes
for uh July 24th emergency meeting say

616
01:01:45,599 --> 01:01:51,200
I.
>> All opposed.

617
01:01:48,799 --> 01:01:58,319
» Motion carries.
The next packet on your agenda is going

618
01:01:53,200 --> 01:02:02,799
to be 6B and that is
July 28, 2026. That was a special

619
01:02:00,960 --> 01:02:08,960
meeting.
Do we have any corrections or amendments

620
01:02:04,640 --> 01:02:14,240
or questions on this one?
Do I have a motion to approve the uh

621
01:02:11,440 --> 01:02:17,920
special meeting on July 28, 2026?
>> I motion.

622
01:02:15,040 --> 01:02:21,920
» Do I have a second?
>> All in favor of approval of the minutes

623
01:02:19,599 --> 01:02:22,960
for July 28, 2026 special meeting, say
I.

624
01:02:22,559 --> 01:02:27,760
» I.
>> All opposed.

625
01:02:25,040 --> 01:02:33,680
Motion carries.
Next one in your packet is 6C

626
01:02:30,640 --> 01:02:41,520
and this is your July 13, 2026 regular
meeting. Do you have any corrections or

627
01:02:37,280 --> 01:02:44,839
amendments or anything that you would
want to update?

628
01:02:45,280 --> 01:02:52,559
» Do I have a motion to approve the August
13, 2026 regular meeting?

629
01:02:51,599 --> 01:02:55,839
Do I have a second?
>> Second.

630
01:02:53,520 --> 01:03:00,720
» All in favor of approving August 13,
2026 regular meeting, say I.

631
01:02:58,559 --> 01:03:06,160
» All opposed?
Motion carries.

632
01:03:03,440 --> 01:03:11,119
We're also serious.
It is. It is serious. It we we really

633
01:03:09,040 --> 01:03:16,000
want to be there.
We're going to have the next topic on

634
01:03:13,359 --> 01:03:21,599
your agenda is to discuss and consider a
presentation by Lee uh Branchard

635
01:03:19,520 --> 01:03:26,160
regarding the data center cipher
digital. I will mention to you right now

636
01:03:24,079 --> 01:03:32,640
this is the first presentation we have
received. Uh none of us has seen any

637
01:03:29,680 --> 01:03:37,680
presentation prior to this. So this is
the initial presentation. Okay.

638
01:03:36,728 --> 01:03:42,079
[clears throat]
Mayor,

639
01:03:39,440 --> 01:03:46,400
I have a question. Is this on?
>> Yeah.

640
01:03:43,680 --> 01:03:52,000
We received this this morning again,
right? This one yesterday

641
01:03:48,960 --> 01:03:55,000
that it was in your agenda that the what
was

642
01:03:55,839 --> 01:04:02,280
your problem?
>> Cuz it should have been with agenda.

643
01:04:05,039 --> 01:04:08,720
Yeah,
>> we need to be a little bit more specific

644
01:04:07,119 --> 01:04:12,559
when they when they're going to do
presentations for anybody. They need to

645
01:04:10,480 --> 01:04:16,359
turn it in to Juanita that day to be
posted by the deadline.

646
01:04:20,720 --> 01:04:26,720
Mayor Luna, Mr. Wright, esteemed council
members. Uh my name is Lee Brancher. I'm

647
01:04:25,200 --> 01:04:31,920
head of policy and government affairs at
Cipher Digital. Before I go, would you

648
01:04:29,359 --> 01:04:35,359
guys be okay if I turn sideways a little
bit so I can try to address the

649
01:04:33,760 --> 01:04:40,880
community and the council at the same
time?

650
01:04:37,680 --> 01:04:45,520
» Here we go.
Well, I'll try to pivot a little bit

651
01:04:42,559 --> 01:04:52,240
back and forth here. Uh, good evening,
uh, Cula community and esteemed members.

652
01:04:50,640 --> 01:04:57,839
» I'm joined by two of my colleagues, Bill
Blevens. Uh, Bill ran uh, large load

653
01:04:55,599 --> 01:05:01,839
interconnections at Urkott for many
years, served at Urkott, the grid

654
01:04:59,440 --> 01:05:07,359
operator in Texas for 20 years, and also
our senior vice president of data center

655
01:05:04,640 --> 01:05:12,319
operations, Lee Rivers, uh, joins us
tonight as well. We're here to answer

656
01:05:09,039 --> 01:05:18,480
questions um, and to provide some
information. So, I'd like to before I

657
01:05:16,400 --> 01:05:23,280
get into the presentation, I'd like to
address one item related to water.

658
01:05:21,760 --> 01:05:28,400
Thank you.
Um

659
01:05:25,039 --> 01:05:33,200
we had initially considered using uh
recycled water effluent water from the

660
01:05:31,280 --> 01:05:39,440
city's disposal
um purple pipe if you will but um we our

661
01:05:37,119 --> 01:05:46,160
design has since changed. So at this
point we are going planning to use a

662
01:05:42,240 --> 01:05:53,200
closed loop system uh that would not
require any water from the city uh or uh

663
01:05:50,240 --> 01:05:59,200
any wells. We don't we don't use potable
water um for cooling the data center. We

664
01:05:56,480 --> 01:06:05,039
we won't be drilling wells uh in the
aquifer. We with a closed loop system.

665
01:06:01,680 --> 01:06:10,559
We would bring in water from um that's
that's treated to purpose um for that

666
01:06:08,480 --> 01:06:13,920
closed loop system and we would top it
off from time to time, but that would be

667
01:06:12,000 --> 01:06:18,079
water that we trucked in uh from
elsewhere in Texas. Uh and it's a

668
01:06:16,480 --> 01:06:23,119
relatively small amount of water that
stays in the system. Now, we would be uh

669
01:06:20,559 --> 01:06:27,359
using water for handwashing and toilet
flushing for the employees of the data

670
01:06:25,280 --> 01:06:32,000
center, and that would require some
water. Uh that would be potable water,

671
01:06:29,359 --> 01:06:37,839
but that would be less water than uh the
Loves um truck stop uses currently. Um

672
01:06:36,240 --> 01:06:42,640
so, I don't have the exact numbers, but
it would be less than a thousand gallons

673
01:06:39,280 --> 01:06:47,760
a day of of water use, and that would
simply be um toilets and and

674
01:06:45,200 --> 01:06:52,960
handwashing. So before I get too deep, I
wanted to uh address that item because

675
01:06:50,240 --> 01:07:00,000
we had considered a different cooling
system previously uh and that is our

676
01:06:56,240 --> 01:07:01,039
current design now. Um
>> I do

677
01:07:00,640 --> 01:07:05,520
» sir.
>> Yes sir.

678
01:07:01,760 --> 01:07:11,440
» So you you're saying that you would not
be drilling and I'm just getting it

679
01:07:07,599 --> 01:07:16,799
again. You know any drilling any n
nothing no fresh water? know nothing

680
01:07:13,760 --> 01:07:22,640
here. I'm in town. Right. So, what about
a waste water? I mean, is it also that

681
01:07:20,000 --> 01:07:25,839
you're you're going to be using?
>> We we had considered that initially, but

682
01:07:24,559 --> 01:07:30,160
that's no longer our plan.
>> Good. Okay. Yes. Because I had I had

683
01:07:28,160 --> 01:07:35,440
also doing a little bit of re research
that AI centers,

684
01:07:32,480 --> 01:07:39,440
we were told that we were going to that
y'all were going to be using our

685
01:07:37,039 --> 01:07:44,880
wastewater. council may let him do the
presentation.

686
01:07:41,839 --> 01:07:49,119
» Let's get and
and and

687
01:07:46,559 --> 01:07:55,680
I've also did um did did a little bit of
research that um data centers don't use

688
01:07:53,200 --> 01:08:00,559
waste waters at all. they use fresh
water and that's I I want to get things

689
01:07:58,799 --> 01:08:07,200
I want to get more of an understanding
for me for for our PE people because uh

690
01:08:04,559 --> 01:08:12,000
I'm taking this very seriously for our
future and um I'm just I'm just kind of

691
01:08:11,280 --> 01:08:16,880
curious.
>> Thank you,

692
01:08:13,920 --> 01:08:20,960
» Councilman. So, um if we had gone with
the original idea to use waste water, we

693
01:08:19,359 --> 01:08:25,679
would have purified it. So we had to
have built a reverse osmosis water

694
01:08:23,120 --> 01:08:31,120
treatment facility uh to purify that
water. But um uh that's not the the plan

695
01:08:28,239 --> 01:08:37,440
at this point. Uh and we are open as the
the gentleman rancher said earlier um

696
01:08:34,400 --> 01:08:42,319
you know as we sit here today we have
not earned y'all's trust. So me saying

697
01:08:39,359 --> 01:08:47,279
that is is not uh is is a small comfort.
So, as the as the man as the gentleman

698
01:08:44,640 --> 01:08:53,440
said earlier, um we would certainly be
open to uh contractual

699
01:08:50,960 --> 01:08:58,799
um tying our hands on that. If you want
to tie our hands on water consumption

700
01:08:55,920 --> 01:09:02,640
and and have severe penalties, financial
penalties for us not abiding that by

701
01:09:01,040 --> 01:09:07,040
that, we would we would certainly accept
that and want to move forward with that.

702
01:09:04,400 --> 01:09:12,080
Um I I was on Facebook a couple nights
ago. I live uh in North Texas. Um, and I

703
01:09:10,560 --> 01:09:16,319
was just scrolling and I noticed a few
posts from members of the community

704
01:09:14,080 --> 01:09:21,040
encouraging uh in Cula encouraging other
members of the community to come and

705
01:09:17,920 --> 01:09:29,040
oppose um the data center potential data
center development uh here um in Cula.

706
01:09:25,279 --> 01:09:35,040
And um I'm glad you guys did that. I'm
glad you guys are here to share your

707
01:09:31,199 --> 01:09:41,759
concerns. Um my colleagues and I uh have
experience in many communities in West

708
01:09:37,920 --> 01:09:46,000
Texas of similar sizes um and and have
heard very similar concerns before. And

709
01:09:44,239 --> 01:09:50,480
so again, while we don't have your trust
today, we do plan on earning that trust

710
01:09:48,640 --> 01:09:54,560
over time.
Um, I'm sure it wouldn't have been from

711
01:09:52,560 --> 01:09:59,840
anybody here in the room tonight, but I
also saw a Facebook post or two that uh

712
01:09:57,280 --> 01:10:04,560
seemed to insinuate that there were that
that the council and the mayor may have

713
01:10:02,239 --> 01:10:09,280
had been doing backroom deals with
Cipher. This is the first time that I've

714
01:10:06,719 --> 01:10:13,440
met anyone on the city council. Uh, this
is the first time I've communicated

715
01:10:10,800 --> 01:10:17,760
with. I have not ha no one at Cipher
Digital has emailed with communicated or

716
01:10:15,600 --> 01:10:24,400
or had a phone call with any of your
elected officials uh here in Cula. Um we

717
01:10:22,080 --> 01:10:29,520
have had a conversation with Lasal
County uh in full transparency, but we

718
01:10:27,280 --> 01:10:33,440
have not uh this is our first engagement
and presentation to uh your elected

719
01:10:31,600 --> 01:10:40,480
officials. So I just wanted to make sure
that you know you guys y'all know that

720
01:10:36,400 --> 01:10:44,960
but further tell the community that um
also as a general practice our company

721
01:10:42,239 --> 01:10:49,600
does not require NDAs. So we will not be
requesting uh any members of the council

722
01:10:47,520 --> 01:10:54,960
the mayor or the city manager to sign a
non-disclosure agreement. Um so anything

723
01:10:52,159 --> 01:11:00,159
that they know you guys can know. Um
that is just a practice that that we do

724
01:10:57,440 --> 01:11:06,560
not uh undertake.
Um, so Cypress objective is to build a

725
01:11:02,480 --> 01:11:14,880
70 megawatt data center uh near Cula
um near the Lo's truck stop off of I35

726
01:11:10,880 --> 01:11:20,320
uh south of town. Uh so we we want to do
that in a way that's beneficial to the

727
01:11:17,120 --> 01:11:26,000
community and you as the community are
the only ones that can determine what's

728
01:11:22,960 --> 01:11:32,000
beneficial to you guys um and what's
not. So, uh, we understand that perhaps

729
01:11:29,440 --> 01:11:36,800
tax revenue or other, you know, economic
development benefits, um, may not be the

730
01:11:35,360 --> 01:11:43,120
the most important thing for the
community and and we've heard that loud

731
01:11:38,560 --> 01:11:46,480
and clear this evening. Um, we So, so we
have other data centers throughout I'm

732
01:11:44,880 --> 01:11:51,840
not sure if we're able to show a slide
or two. That's okay if we can't, but if

733
01:11:49,120 --> 01:11:54,719
you would go to the second slide, we
have other data centers throughout

734
01:11:53,199 --> 01:12:01,040
Texas.
um most of which are about more than

735
01:11:58,560 --> 01:12:05,440
four times the size of the data center
that we're proposing here in Cula. Uh

736
01:12:03,840 --> 01:12:10,000
and those would be in similar
communities. For example, Mitchell

737
01:12:07,040 --> 01:12:16,080
County, Colorado, Colorado City, Texas
is up near Abalene. That that is a 300

738
01:12:12,800 --> 01:12:20,239
megawatt data center facility. And um
the the reason why we were we're there,

739
01:12:18,080 --> 01:12:24,719
the reason why we're here is because of
the electrical transmission lines that

740
01:12:22,560 --> 01:12:31,440
that run. We didn't we didn't select
Cula um for any other reason other than

741
01:12:28,719 --> 01:12:36,640
uh there are sizable transmission lines
that have a lot of extra power capacity

742
01:12:33,760 --> 01:12:40,960
on them and we were told by the utility
and the grid operator that this was an

743
01:12:38,560 --> 01:12:47,199
optimal place to put a high power
consuming facility. 70 megawatts is

744
01:12:43,600 --> 01:12:52,239
quite a bit of power. Um I I think it's
also important to note though that based

745
01:12:48,960 --> 01:12:58,080
upon the Texas legislaturator's decision
two years ago, data centers will never

746
01:12:54,719 --> 01:13:04,320
be on when um the community's power is
off. So there has a remote breaker that

747
01:13:02,159 --> 01:13:09,120
they can push at any time. It's probably
not a physical button, but it is a um a

748
01:13:07,040 --> 01:13:13,280
control that they can use in the control
room at the Urkott control room to turn

749
01:13:11,199 --> 01:13:20,640
off a data center anytime there is a
power emergency. So if Urkott gets into

750
01:13:16,560 --> 01:13:26,080
an emergency um they call it EA events,
they will shut a data center down um and

751
01:13:23,760 --> 01:13:32,000
and attempt to alleviate the grid
emergency um in that way. Now I I do

752
01:13:30,000 --> 01:13:35,840
want to caveat to say if there is a tree
that falls on a power line in a certain

753
01:13:33,679 --> 01:13:39,280
part of town and power goes out as a
result, that's not really what I'm

754
01:13:38,000 --> 01:13:42,960
referring to here.
you know that that's something the grid

755
01:13:40,560 --> 01:13:46,960
operator can't control nor can cipher
control but it is our commitment to you

756
01:13:44,880 --> 01:13:52,480
and it's also the law that we cannot be
consuming power um if you guys are are

757
01:13:50,560 --> 01:13:58,880
don't don't have power
>> sir I have another question you said

758
01:13:55,679 --> 01:14:02,320
shutting it down okay right okay so if
it's shut down it's just going to be an

759
01:14:00,320 --> 01:14:07,040
abandoned building right there and just
or do y'all plan to take take out

760
01:14:05,040 --> 01:14:11,840
everything out and leave that land clear
again So, uh, when I said shut down, I

761
01:14:09,920 --> 01:14:16,800
meant shut down until the grid emergency
passes. Usually that's when a few hours,

762
01:14:15,199 --> 01:14:20,480
then the data center would power back
up. Yes, sir.

763
01:14:18,880 --> 01:14:24,320
» Yeah. If the electricity went out on the
grid.

764
01:14:22,320 --> 01:14:28,719
» Correct. And and we could be shut down
for, you know, heaven forbid another

765
01:14:26,480 --> 01:14:33,040
your wintertorm Yuri type situation, but
if it was multiple days, um, the data

766
01:14:31,600 --> 01:14:37,360
center would be would be down for that
amount of time. Uh I I would like to

767
01:14:35,760 --> 01:14:41,360
mention that my colleagues and I and
again uh in a moment I'd love to take

768
01:14:40,080 --> 01:14:47,600
questions if that's okay with the
council and the mayor. Um we can't I

769
01:14:45,440 --> 01:14:51,600
» I do want you to take do questions but I
think the council has established

770
01:14:49,600 --> 01:14:54,800
questions before you and hopefully get
those going and that would answer some

771
01:14:53,360 --> 01:14:58,719
of what our community has.
>> Wonderful. Yeah, I I have colleagues

772
01:14:57,120 --> 01:15:02,880
here that can answer questions that are
specifically from the community or the

773
01:15:00,960 --> 01:15:05,120
council pertaining to
>> I think I only have like four pages of

774
01:15:04,640 --> 01:15:09,840
them.
>> Just four pages. Okay, we'll be ready.

775
01:15:07,440 --> 01:15:14,480
Um I would also like to invite anybody
from the community or the council to

776
01:15:12,000 --> 01:15:21,040
tour another data center site uh that we
have in Texas. um they're a little bit

777
01:15:18,400 --> 01:15:26,560
of a drive a couple hours north of here,
but those communities initially were

778
01:15:23,520 --> 01:15:30,960
pretty hesitant about our presence and
um we're happy to say that the vast

779
01:15:29,280 --> 01:15:35,199
majority in the community are excited
about the data center's presence and

780
01:15:32,400 --> 01:15:38,880
actually asking us to expand um in those
communities. And again, they're four

781
01:15:37,120 --> 01:15:43,600
times the size of the data center
proposed here um in Colorado City. It's

782
01:15:41,360 --> 01:15:47,679
a 300 megawatt data center. We'd love to
host you there in the next couple weeks.

783
01:15:45,280 --> 01:15:52,960
In fact, September 14th, we're hope uh
hosting an open tour. Uh we would also

784
01:15:50,640 --> 01:15:56,640
provide lunch to you guys who would want
to come up or council members or mayor

785
01:15:54,719 --> 01:16:00,880
that would want to come up uh and allow
you to connect with the county

786
01:15:58,320 --> 01:16:05,600
commissioners and the city council for
uh that town uh without us present so

787
01:16:04,080 --> 01:16:11,360
that you can ask them what it's been
like uh operating uh or or communicating

788
01:16:09,360 --> 01:16:17,199
with us or having us be part of their
community. Um we've done that before and

789
01:16:14,640 --> 01:16:20,560
um again we're happy to not be present
during that time. Of course we'll show

790
01:16:18,960 --> 01:16:24,000
you around the data center but then
whenever you're having lunch with um

791
01:16:22,320 --> 01:16:27,679
community members and and leadership
from that city and county uh we will

792
01:16:26,560 --> 01:16:33,600
leave so you can have a frank
conversation.

793
01:16:30,640 --> 01:16:38,719
Uh so Cipher could build this this data
center either within city limits behind

794
01:16:35,679 --> 01:16:43,520
the loves or uh across on the other side
of I35 in the county. Uh there were some

795
01:16:42,000 --> 01:16:47,600
really good questions about abatements
earlier. Uh we're not seeking an

796
01:16:45,840 --> 01:16:51,280
abatement from Lasowl County. Either
way, uh if we build in the city or if we

797
01:16:49,920 --> 01:16:56,480
build in the county, we'll be paying
full property taxes, full county taxes,

798
01:16:54,159 --> 01:17:01,520
full water district taxes and full Cula
ISD taxes as well. So regardless of if

799
01:16:59,440 --> 01:17:06,480
if the data center is in the city limits
or outside city limits in the county, uh

800
01:17:04,400 --> 01:17:11,520
the only abatement that we are
requesting is actually we are interested

801
01:17:09,760 --> 01:17:15,040
in building inside the city to bring
tremendous tax revenue to the city and I

802
01:17:13,600 --> 01:17:21,120
have the details and the exact numbers
of our projections. Um a third party tax

803
01:17:18,000 --> 01:17:27,280
consultant developed for that. Um it is
quite a bit more taxes if we build in

804
01:17:24,640 --> 01:17:33,600
the city like tens of millions of
dollars more uh in taxes if we build in

805
01:17:31,280 --> 01:17:38,400
the city versus in the county. We are
willing to pay those taxes uh but rather

806
01:17:36,480 --> 01:17:42,719
than pay the full amount we are
requesting to pay u half of the amount.

807
01:17:40,960 --> 01:17:47,280
So we would pay the full taxes to the
county either way we build in the city

808
01:17:45,199 --> 01:17:52,320
or out of the county. if we build in the
city uh which would again us be us

809
01:17:50,239 --> 01:17:57,280
paying a considerable amount more and we
do have real estate on both sides so we

810
01:17:54,080 --> 01:18:03,840
could build in either jurisdiction. Uh
if we do build in the city, uh that is

811
01:18:00,320 --> 01:18:09,760
the only situation in which we discussed
uh or really haven't even discussed yet,

812
01:18:05,360 --> 01:18:15,360
but hope to discuss a potential um uh
sales tax abatement, bringing the sales

813
01:18:11,520 --> 01:18:20,000
tax down from 2% to 1%. Uh and and
bringing the properties tax down by

814
01:18:17,120 --> 01:18:25,840
about 40%. We'd still even after those
abatements, be the largest taxpayer

815
01:18:22,800 --> 01:18:30,000
um uh in Cula, Texas by by a large
margin. And again, I'll have those

816
01:18:27,120 --> 01:18:33,840
numbers here in just a moment.
Um,

817
01:18:31,600 --> 01:18:40,679
I would like at this point, I know the
screen's a little bit small, but if we

818
01:18:35,280 --> 01:18:40,679
could just jump to those numbers. Um,

819
01:18:42,880 --> 01:18:54,400
thank you. So this is with the data
center uh in these are the figures facts

820
01:18:50,560 --> 01:19:00,719
and figures with the data center in Cula
uh in city limits with the uh partial

821
01:18:57,840 --> 01:19:08,000
abatements that I that I mentioned and
uh over 10 years we would be paying uh

822
01:19:04,560 --> 01:19:14,400
19 million to the city alone. Cula ISD
stands to make much more than that um

823
01:19:11,199 --> 01:19:19,920
triple that amount. Uh so the so the ISD
would would be a significant um receiver

824
01:19:17,600 --> 01:19:24,640
of of tax and again that is regardless
the ISD taxing jurisdiction covers uh

825
01:19:22,800 --> 01:19:30,400
either of the locations that that we're
looking at. Um we do plan on hiring of

826
01:19:28,239 --> 01:19:35,840
course uh you are correct sir the
construction jobs are are certainly um

827
01:19:34,000 --> 01:19:40,480
more numerous than the ongoing
operations jobs. So there would be

828
01:19:37,360 --> 01:19:46,400
several hundred construction jobs for 12
months and then when the construction is

829
01:19:42,719 --> 01:19:52,239
complete um there would be between 30
and 50 uh full-time employees with

830
01:19:49,440 --> 01:19:58,719
salaries ranging from 70,000 to 120,000
a year. Um and again you guys are

831
01:19:54,880 --> 01:20:03,040
welcome to to ask the residents and the
the the employees at uh our Mitchell

832
01:20:01,280 --> 01:20:06,480
County facility if you do choose to come
join us up there in a few weeks for a

833
01:20:04,560 --> 01:20:11,760
tour. It doesn't have to be September
14th, but we're trying to put that date

834
01:20:09,280 --> 01:20:18,400
out there so we can get everybody um on
the same day from from um Lasowl County

835
01:20:14,960 --> 01:20:22,320
to to come. But so so between 30 and 50
full-time employees with that salary

836
01:20:20,400 --> 01:20:26,480
range is what we're anticipating as far
as that concern. And and I cannot

837
01:20:24,560 --> 01:20:33,120
guarantee that all of those uh people
will will be hired from Lasowl County.

838
01:20:29,760 --> 01:20:37,360
Uh we do prioritize hiring locally. It's
cheaper for us because we don't have to

839
01:20:34,480 --> 01:20:41,120
pay relocation bonuses. So, so you have
our commitment that is our priority, but

840
01:20:39,120 --> 01:20:44,080
it is not a guarantee that we will hire
all those people locally.

841
01:20:43,360 --> 01:20:49,280
» Sure.
>> On on that one with with jobs, you got

842
01:20:46,400 --> 01:20:53,520
50 employees, right? Say we have if say
we average 50 employees, say would those

843
01:20:51,840 --> 01:20:57,920
50 employees and of course they would if
we we wrote that into the books, half of

844
01:20:55,679 --> 01:21:04,640
them would be for Kajula. Is there any
training and or uh that we can use that

845
01:21:01,600 --> 01:21:10,159
so that our our our our uh our staff
would be employable in Cula?

846
01:21:07,280 --> 01:21:14,800
» So any training that uh Cula could do or
we could do on behalf understood. Um so

847
01:21:13,199 --> 01:21:20,640
in Mitchell County we partner with
Colorado City Texas ISD Independent

848
01:21:17,360 --> 01:21:27,920
School District to uh train um near
graduates, juniors and seniors in their

849
01:21:22,719 --> 01:21:32,320
new uh CTE uh technology center. Um
these these jobs are interesting.

850
01:21:29,520 --> 01:21:36,000
They're not uh I I call them gray collar
jobs. They're not blue collar. They're

851
01:21:33,840 --> 01:21:39,600
not white collar. They're a bit physical
and they're also a bit technical. Uh so

852
01:21:38,159 --> 01:21:44,400
it could be racking and stacking
machines. Uh there's certainly security

853
01:21:42,159 --> 01:21:48,719
jobs. There's there's a lot of electric
electricians that that are certainly

854
01:21:46,000 --> 01:21:54,560
on-site uh diesel mechanics and and
people of that nature. So um it is a

855
01:21:51,120 --> 01:21:59,199
unique uh and varied job requirements
that we do require um and we have

856
01:21:57,280 --> 01:22:03,840
partnered with school districts in in
the past to um create training programs.

857
01:22:02,400 --> 01:22:07,679
So that is something that we'd certainly
want to look into. So, well, with that

858
01:22:05,920 --> 01:22:11,199
being said, don't forget that Lasowl
County is trying to work on getting

859
01:22:08,960 --> 01:22:15,520
Southwest Texas to come in here for this
kind of particular jobs, too. So, um it

860
01:22:13,600 --> 01:22:19,040
might be just an avenue just because I
wanted to touch on that because you

861
01:22:16,560 --> 01:22:22,080
mentioned it.
>> And and one other thing that was

862
01:22:20,880 --> 01:22:27,760
mentioned in the comments from the
community and and I think is a valid

863
01:22:23,840 --> 01:22:30,480
concern is noise. Um data center, there
have been some data centers in the past

864
01:22:29,040 --> 01:22:35,600
that have created quite a bit of noise
in the community. the places that we're

865
01:22:33,040 --> 01:22:40,400
planning to construct, we would be one
of the uh quietest industrial operations

866
01:22:38,960 --> 01:22:44,000
there. Now, I will not say that the
construction period will be quiet. Those

867
01:22:42,159 --> 01:22:47,920
12 months, there will be increased
traffic. Uh in our other communities in

868
01:22:46,560 --> 01:22:52,560
which we build, that is a common
complaint that we get is is around

869
01:22:49,440 --> 01:22:55,199
traffic. So, sometimes we end up hiring,
you know, if there's extra sheriff's

870
01:22:53,840 --> 01:22:59,520
deputies. There's not always a lot of
extra sheriff's deputies. Sometimes we

871
01:22:56,800 --> 01:23:04,719
hire private security to conduct uh
traffic management around the site

872
01:23:01,440 --> 01:23:08,800
because when you add a 100 vehicles to
an area that's not used to that kind of

873
01:23:06,480 --> 01:23:14,239
traffic that that can become a problem.
Uh but the noise after the data center

874
01:23:11,360 --> 01:23:18,800
is constructed is is quite negligible.
We will be conducting sound studies

875
01:23:16,159 --> 01:23:23,199
before and after. Uh certainly would be
at a decibel level much quieter than

876
01:23:21,199 --> 01:23:28,480
than the train tracks that would be near
us. uh much quieter than the um gas

877
01:23:26,560 --> 01:23:31,760
gathering facility that that are on the
other side of the highway. So, we've

878
01:23:29,600 --> 01:23:35,440
kind of looked at the other industrial
applications that are around there and

879
01:23:34,000 --> 01:23:41,440
um you have our commitment that the
decibel level will will be much quieter

880
01:23:38,159 --> 01:23:46,719
than those. The servers are loud, but
they're inside several rooms. There's

881
01:23:44,639 --> 01:23:51,280
several walls and layers of of thick
concrete in between the servers and the

882
01:23:49,679 --> 01:23:54,000
outside. So you cannot even hear the
servers from the front door of the data

883
01:23:52,719 --> 01:23:58,400
center, much less the property line of
the data center. The the things that

884
01:23:56,480 --> 01:24:02,880
could be loud would be the diesel
generators for backup generation. Those

885
01:24:00,639 --> 01:24:07,440
are loud. Uh we don't plan to have many
diesel generators at this uh site. We're

886
01:24:05,520 --> 01:24:11,040
not fully backing up this uh data
center. So there could be some small

887
01:24:09,360 --> 01:24:15,120
generators to back up critical
infrastructure. Uh but those would be

888
01:24:13,120 --> 01:24:19,199
similar to generators that you guys
would have around town at other other

889
01:24:16,800 --> 01:24:24,639
buildings. And those would only run in
the event of an emergency uh or in the

890
01:24:21,840 --> 01:24:28,320
event of a test for like 15 minutes uh
during working hours. They might test

891
01:24:26,159 --> 01:24:32,080
one of those generators. Uh and again,
even the generator noise would be at a

892
01:24:30,560 --> 01:24:37,760
decibel level much quieter than the
other industrial applications around

893
01:24:33,920 --> 01:24:41,280
these locations. So, um happy to take
more questions about noise in just a

894
01:24:39,360 --> 01:24:44,800
moment uh once we've tackled the
questions from the city council.

895
01:24:42,639 --> 01:24:48,320
» That noise on uh compare that to the
train you just heard. Is that an

896
01:24:46,960 --> 01:24:51,760
everyday occurrence? And is it going to
be that loud?

897
01:24:49,840 --> 01:24:55,679
» Certainly not. I I don't know what the
decibel level is of the train that we

898
01:24:53,360 --> 01:25:00,639
just heard, but um we will be taking
decibel readings before and after. And

899
01:24:58,239 --> 01:25:05,199
it is our expectation that the data
center will not contribute to noise

900
01:25:02,880 --> 01:25:09,440
pollution in the the surrounding area.
>> Sure. Um I would like to go to a data

901
01:25:07,600 --> 01:25:13,520
center that's already working. I would
like to hear the noise and everything.

902
01:25:11,840 --> 01:25:16,400
You just let me know and I'll be be
there.

903
01:25:14,000 --> 01:25:20,880
» Okay. So the the tenative date would
probably be around September 14th that

904
01:25:18,560 --> 01:25:24,159
we would be able to go and I believe 25
people would be able to go along with

905
01:25:22,320 --> 01:25:29,199
us.
>> Happy to take and and 25 is just a

906
01:25:26,080 --> 01:25:33,280
number that I think I threw out. Um we
can take more if there's more interest.

907
01:25:31,520 --> 01:25:37,520
» One one other thing if I could real
quickly bring up you know we live in the

908
01:25:35,520 --> 01:25:41,600
United States of America. you know, a
company that wants to come into an area,

909
01:25:39,600 --> 01:25:45,679
a city council or a city does not have
the authority to say, "Oh, you can't

910
01:25:43,520 --> 01:25:49,679
come and you can't build there." They
the data center if they want to build on

911
01:25:47,679 --> 01:25:53,040
the property, they can. The question the
question of the matter is is are they

912
01:25:51,280 --> 01:25:56,800
going to use our water? Are we going to
allow them to use our water? And are we

913
01:25:55,120 --> 01:25:59,840
going to give them a tax abatement? You
know, if they bring their own water and

914
01:25:58,159 --> 01:26:03,520
there's no tax abatement, they could
build. The actual property itself is

915
01:26:01,920 --> 01:26:07,360
already zoned industrial. It's been in
zoned industrial for years. there's

916
01:26:06,000 --> 01:26:10,639
really not much that they would have to
go through besides the permit building

917
01:26:08,880 --> 01:26:14,080
permit process to be able to build
there. I just wanted to put that out

918
01:26:12,400 --> 01:26:18,000
there. Another thing as far as the
decimals, you know, uh the sound, the

919
01:26:16,239 --> 01:26:22,159
the one thing the city can do is they
could pass an ordinance for sound and

920
01:26:20,639 --> 01:26:26,719
then they would have to stay within that
ordinance amount. Um there's going to be

921
01:26:24,800 --> 01:26:30,560
many contracts, at least 20 different
contracts with this with this company if

922
01:26:28,639 --> 01:26:36,320
approved through council, you know, to
make sure we have everything documented

923
01:26:32,239 --> 01:26:39,280
and everything in place. Um, as far as a
tax payment, I don't know how if you

924
01:26:38,000 --> 01:26:42,480
want to go further with that one, but
the the abatement, what generally

925
01:26:40,960 --> 01:26:47,920
happens with that is that money comes to
the city. And if if the data center or

926
01:26:45,120 --> 01:26:52,000
company does not uh keep to the
contracts that they they've been given

927
01:26:49,920 --> 01:26:56,560
and signed, they wouldn't get the re the
rebates. So, and that would be on a

928
01:26:54,080 --> 01:27:00,719
yearly basis. I just wanted to put that
out there.

929
01:26:57,760 --> 01:27:04,080
» Mr. Right, that's a a point that I'd
like to a thread that I'd like to pull

930
01:27:01,920 --> 01:27:08,400
in a little bit further. So, if the city
council uh elects not to do an

931
01:27:06,239 --> 01:27:13,520
abatement, that is completely within
y'all's um remit and purview, uh we may

932
01:27:11,920 --> 01:27:18,400
still build inside the city without an
abatement. It would be harder for us to

933
01:27:15,840 --> 01:27:22,000
convince our executive team to do that.
We we may elect to build in the county

934
01:27:20,400 --> 01:27:28,239
because the tax burden would be much
much lighter. Um but if we do build in

935
01:27:25,760 --> 01:27:32,320
the city limits, then we would be happy
to have our hands tied related to the

936
01:27:30,560 --> 01:27:38,639
abatement. the the abatement could give
the community members uh teeth to hold

937
01:27:35,760 --> 01:27:42,880
us accountable uh to doing what we say
we're going to do. We're going to do

938
01:27:40,639 --> 01:27:47,120
what we say we're going to do whether we
build in the city or the county. But if

939
01:27:45,360 --> 01:27:52,719
we build in the city, then there is
significant financial penalties that

940
01:27:48,800 --> 01:27:57,920
could be levied upon us if um if we
don't abide by the terms. Uh whereas the

941
01:27:56,000 --> 01:28:03,360
the rules around construction in the
county as as many of you know you you

942
01:27:59,840 --> 01:28:07,600
have a lot of industry in in county land
uh the decibel level in Texas and

943
01:28:05,199 --> 01:28:12,000
unincorporated county land is 75 dB.
That's pretty loud. We are not going to

944
01:28:09,199 --> 01:28:17,040
be that loud but that is the only rule
that we would have to abide by um if we

945
01:28:15,360 --> 01:28:22,080
were in the county. And so let me be
clear. we are still going to be the same

946
01:28:20,400 --> 01:28:27,600
um
transparent and and communicative

947
01:28:25,199 --> 01:28:33,440
professional organization regardless of
where we build. Uh but if if there is an

948
01:28:31,040 --> 01:28:38,080
opportunity to build inside city limits,
there is a mechanism for you guys to to

949
01:28:35,679 --> 01:28:42,639
hold our feet to to the fire with severe
potential penalties uh if we don't keep

950
01:28:40,480 --> 01:28:46,320
those commitments. So, I'm going to
proceed with uh with what we have and I

951
01:28:44,639 --> 01:28:49,360
I know everybody wants to get questions
answered because we really haven't

952
01:28:47,600 --> 01:28:52,639
answered a lot of the questions, Rick.
Uh some of the bigger questions, of

953
01:28:50,960 --> 01:28:57,040
course, you're beating the water system
and uh um again, we don't we we heard

954
01:28:55,120 --> 01:29:01,199
about the power grid, but but I'm going
to pose this question to you and my

955
01:28:58,800 --> 01:29:05,840
question to you is uh you're not medical
and you're not sustenance. How are you

956
01:29:03,280 --> 01:29:09,920
going to help my community? Because if
you tell me HB's attached to you or

957
01:29:08,239 --> 01:29:14,560
Walmart's attention to you, we're going
to obey them. But you're not that. What

958
01:29:13,040 --> 01:29:19,600
are you going to do for my community?
What are you do going to do for Couture?

959
01:29:17,199 --> 01:29:25,280
» It's a great question, mayor. So, um the
things that we can bring uh on a

960
01:29:22,080 --> 01:29:30,159
positive u you know economic development
generating front. Uh we're happy to

961
01:29:28,239 --> 01:29:35,120
frontload some of our tax payments. So,
when we start con typically with a a

962
01:29:32,400 --> 01:29:39,199
construction project like this, um tax
payments don't happen until the project

963
01:29:37,120 --> 01:29:44,560
is is finished. So, we're happy to happy
to frontload uh some payments to the

964
01:29:41,920 --> 01:29:52,560
city that can be used as the city sees
fit um for infrastructure for tax

965
01:29:48,719 --> 01:29:58,400
savings. Um it is worth noting that in
all the communities in which we are

966
01:29:54,719 --> 01:30:02,719
operating the um the taxing entities be
it cities or counties are looking at

967
01:30:00,560 --> 01:30:06,880
lowering their property taxes because of
the tremendous property tax revenue that

968
01:30:04,400 --> 01:30:13,040
a data center brings. the community is
having to pay less taxes. Um, in one

969
01:30:09,280 --> 01:30:19,600
situation, our data center 5xed or a
mult by a multiple of five increased the

970
01:30:15,440 --> 01:30:22,960
taxable value uh for that county. I
we're not bringing that much investment

971
01:30:21,520 --> 01:30:27,440
although we are bringing investment in
in the multiple billions. Uh so we would

972
01:30:25,520 --> 01:30:31,600
be the largest taxpayer. I don't think
we would quite 5x the value the taxable

973
01:30:29,760 --> 01:30:36,480
value in Las County because there's a
lot of oil and gas activity here and a

974
01:30:33,840 --> 01:30:41,920
lot of commerce here. Uh but we would be
a significant taxpayer. Um and and the

975
01:30:39,840 --> 01:30:46,800
secondary and tertiary economic
benefits, secondary jobs and tertiary

976
01:30:44,239 --> 01:30:52,560
jobs um are quite significant. So while
there may only be 30 full-time

977
01:30:49,679 --> 01:30:56,880
um employees of the data center, the
secondary jobs can sometimes be two or

978
01:30:55,280 --> 01:31:02,080
three times that amount in the
community. that's at the restaurants, at

979
01:30:58,800 --> 01:31:05,600
the hotels, um,
all around town with with generating

980
01:31:04,000 --> 01:31:09,440
economic activity.
>> This one's an easy question. When will

981
01:31:07,679 --> 01:31:13,679
be the when will the first town hall
meeting be scheduled?

982
01:31:11,440 --> 01:31:19,760
» So, we we have reached out to a couple
facilities in Cula to book a place, a

983
01:31:17,040 --> 01:31:25,840
venue large enough. And, um, we'd be
open to doing that in the next couple

984
01:31:21,360 --> 01:31:30,800
weeks. Um, I think we we'd probably hope
to schedule the tour of another facility

985
01:31:28,639 --> 01:31:36,920
first. Uh, but I can commit to you that
in the month of September, we will

986
01:31:32,320 --> 01:31:36,920
certainly have a town hall gathering.

987
01:31:39,760 --> 01:31:47,520
What are the long-term um consequences
to the municipality? What I mean by that

988
01:31:44,719 --> 01:31:51,120
is that you you're you're coming in,
you're using water. You already said

989
01:31:49,199 --> 01:31:54,320
it's a closed circuit. At some point
you're going to have to dump that. How

990
01:31:52,560 --> 01:31:57,199
does that work?
>> It's a good question. I'm actually gonna

991
01:31:55,760 --> 01:32:00,719
Can I throw that question to one of my
colleagues? Okay. So, Lee Rivers, our

992
01:31:59,280 --> 01:32:03,360
senior vice president of data center
operations, deals more with the water

993
01:32:02,159 --> 01:32:07,520
piece. You probably don't need the mic,
do you?

994
01:32:06,159 --> 01:32:12,480
» I don't like talking to the microphone,
so I apologize if I'm nervous and do all

995
01:32:09,360 --> 01:32:15,040
this ahead of time. Um, the water aspect
of that thing, this is a closed loop

996
01:32:13,920 --> 01:32:17,920
system. So, think of it as like a
radiator in your car. How often are you

997
01:32:16,560 --> 01:32:21,520
really putting water in your radiator of
your car? because it's not really

998
01:32:19,120 --> 01:32:24,880
evaporating with outside the system. Uh
what we do is use chemicals inside the

999
01:32:23,520 --> 01:32:28,480
system to treat the water to make sure
that we don't have any corrosion or

1000
01:32:26,639 --> 01:32:31,840
contaminants within the piping systems
themselves. And sometimes you do have a

1001
01:32:30,320 --> 01:32:35,280
leaker here or there that we have to
fill that back up. But typically once

1002
01:32:33,679 --> 01:32:39,280
that water's in there, it's in there.
And if we do have to train it and refill

1003
01:32:36,960 --> 01:32:44,480
it, it'll be drained, taken off site and
disposed of, not in the wastewater or

1004
01:32:41,280 --> 01:32:49,040
blow down of the county. So that blow
data will not be going into our source

1005
01:32:46,400 --> 01:32:54,920
system, not into uh the river, nothing
into that that none of that.

1006
01:32:51,040 --> 01:32:54,920
» No, it would it would not

1007
01:32:56,560 --> 01:33:00,639
» we're not planning on having to dump it
because it's a closed loop system. So

1008
01:32:59,360 --> 01:33:03,920
it's kind of just in that system
permanently and then we kind of just add

1009
01:33:02,320 --> 01:33:06,639
to it as needed and then you know keep
the chemical balance there so that way

1010
01:33:05,360 --> 01:33:10,600
we're not corroding pipes and stuff
along those lines.

1011
01:33:07,600 --> 01:33:10,600
» Okay.

1012
01:33:10,880 --> 01:33:15,600
Well, we have leak detection within the
system and we'll find that leak

1013
01:33:14,000 --> 01:33:20,080
detection. We'll go ahead and we'll fix
the leak and then top the system off if

1014
01:33:17,520 --> 01:33:23,440
needed. Uh you actually have areas where
you have the high points of the system

1015
01:33:21,520 --> 01:33:27,360
so that way we can add it there and not
have to worry about training the system

1016
01:33:24,639 --> 01:33:32,400
or do anything like that.
It does not happen very regularly. No,

1017
01:33:30,000 --> 01:33:34,960
» I have a question. Can you explain to me
the cool system? The not the cool, what

1018
01:33:34,480 --> 01:33:38,159
is it called?
>> Closed loop system. the closed I I I

1019
01:33:36,960 --> 01:33:40,639
want to I want to visually see what
you're talking about and and how all of

1020
01:33:39,760 --> 01:33:43,440
that works.
>> Uh whenever we do the town hall, I can

1021
01:33:42,320 --> 01:33:47,120
have a presentation to kind of show
exactly what a closed loop system is,

1022
01:33:45,440 --> 01:33:50,320
but think of a closed loop system as
like the radiator in your car, how it's

1023
01:33:48,719 --> 01:33:54,400
taking the heat from the engine and it's
kind of running air through it and it

1024
01:33:52,000 --> 01:33:57,760
has coils and water going through that
aspect of it and blowing across it. So

1025
01:33:56,400 --> 01:34:01,679
that way it's cooling that. So that way
it goes back into takes takes the heat

1026
01:33:59,920 --> 01:34:05,360
from the machines and the servers comes
back through like a dry cooler and air

1027
01:34:03,679 --> 01:34:09,600
conditioned unit and kind of goes like
that.

1028
01:34:07,120 --> 01:34:17,040
» I have a question.
>> Uh health healthwise does it affect or

1029
01:34:14,159 --> 01:34:21,760
does it cause any kind of cancer
with with this uh uh uh data service to

1030
01:34:20,719 --> 01:34:25,199
the community?
>> No sir. I don't know if there's any

1031
01:34:23,440 --> 01:34:28,560
studies of anything like that actually
being in the out there.

1032
01:34:26,560 --> 01:34:30,639
» Somebody getting sick with a data
service.

1033
01:34:29,040 --> 01:34:35,600
» Yeah, I've worked in data centers for
over a decade and I around and exposed

1034
01:34:33,280 --> 01:34:38,639
to it the entire time and I never have
experienced anything like that or heard

1035
01:34:36,960 --> 01:34:43,199
of that either.
>> Another question on

1036
01:34:41,120 --> 01:34:49,120
if if you look at the whole surrounding
of Cotle is a rural community and

1037
01:34:46,400 --> 01:34:54,480
there's big ranches ranches they have
bunch of animal wildlife. What's the

1038
01:34:51,840 --> 01:34:57,840
effect on on on the wildlife? Uh
>> I don't know of any negative effect on

1039
01:34:56,480 --> 01:35:01,760
the wildlife or anything like that. Kind
of like what Lee alluded to earlier. I

1040
01:34:59,600 --> 01:35:04,880
know noise pollution is a misinformation
that's out there about data centers

1041
01:35:03,199 --> 01:35:08,320
quite a bit. I will go ahead and say
like that misinformation comes from

1042
01:35:06,639 --> 01:35:12,239
Bitcoin mining data centers to where
those are not included in like you know

1043
01:35:10,400 --> 01:35:15,679
several layers of walls that we're
talking about here. Um so being inside

1044
01:35:14,400 --> 01:35:18,719
of a data center if we're in a server
hall yes it's it's quite loud. the

1045
01:35:17,520 --> 01:35:21,840
employees in there are going to have to
have hearing protection, things along

1046
01:35:20,080 --> 01:35:25,360
those lines. But outside of the data
center, you will not hear any of that

1047
01:35:23,199 --> 01:35:28,320
noise from the machines running. Uh like
Lee alluded to, the only noise that

1048
01:35:26,800 --> 01:35:32,000
you'll hear outside the data center is
when the diesel generators are running

1049
01:35:29,760 --> 01:35:35,199
for preventive maintenance aspects or if
there was a power outage and we're

1050
01:35:33,120 --> 01:35:38,719
running generators at that point.
>> That blowout and everything else when

1051
01:35:36,719 --> 01:35:42,320
it's being transferred in or out, is it
creating a mist or anything else where

1052
01:35:40,719 --> 01:35:44,560
any of our animals or anything could be
affected or any human being for that

1053
01:35:44,000 --> 01:35:47,920
matter?
>> No, ma'am. It's not uh to where it's

1054
01:35:46,639 --> 01:35:51,600
misted or anything like that. It's a
closed loop system. It's going into it.

1055
01:35:49,840 --> 01:35:54,320
There's no evaporative cooling going on
to where you're actually evaporating

1056
01:35:52,960 --> 01:35:59,560
water into the atmosphere and it's
falling back or anything like that.

1057
01:35:55,920 --> 01:35:59,560
Another one of the

1058
01:35:59,840 --> 01:36:04,800
» Yeah. No. Yeah. Same thing. It's it's a
contained there. There'll be spill

1059
01:36:03,199 --> 01:36:08,159
containment around that and stuff
associated with that as well. Um, one of

1060
01:36:06,960 --> 01:36:11,199
the other counties we were in, people
were talking about uh, forever chemicals

1061
01:36:10,000 --> 01:36:14,480
within the water, but that's not
something that is in an evaporative

1062
01:36:12,880 --> 01:36:18,719
cooling system that would actually be
released either. Um, that's a

1063
01:36:16,400 --> 01:36:23,360
misinformation that's out there.
>> T, you mentioned that that we we could

1064
01:36:21,280 --> 01:36:27,600
possibly go see a facility. Is that
something you're really willing to

1065
01:36:24,639 --> 01:36:31,679
charter?
>> Like taking people up to go to? Yeah, we

1066
01:36:30,320 --> 01:36:34,400
could we can schedule an arrangement to
where we can have a chartered bus to,

1067
01:36:33,199 --> 01:36:37,760
you know, y'all can meet here and then
chartered up there for that day. Uh,

1068
01:36:36,320 --> 01:36:41,040
something like that. Um, like Lee
alluded to, the site that we're asking

1069
01:36:39,360 --> 01:36:44,800
if y'all would like to come see, that's
a 300 megawatt data center as well. And

1070
01:36:43,120 --> 01:36:48,000
it's also a closed loop system, so you'd
be able to see what that actually looked

1071
01:36:46,080 --> 01:36:52,480
like in real time if you'd like to. It's
not actively um online right now, but it

1072
01:36:51,119 --> 01:36:56,040
is scheduled to come online within the
next month or two.

1073
01:37:05,360 --> 01:37:09,920
Yeah, absolutely. I mean, one of the
things that we do, we try to take a

1074
01:37:08,639 --> 01:37:13,040
noise study prior to starting
construction and after construction's

1075
01:37:11,360 --> 01:37:16,000
complete to make sure that we're not,
you know, noise polluting the the

1076
01:37:14,560 --> 01:37:20,320
county. One of the things that we do
also do is uh exhaust stacks on the

1077
01:37:18,159 --> 01:37:24,560
generator systems to reduce the amount
of noise from the generators. Um, but

1078
01:37:22,719 --> 01:37:27,600
it's not going to be anything that you
It's going to be less noise than that

1079
01:37:25,920 --> 01:37:33,440
train that just passed by.
>> Um, if the community is not happy with

1080
01:37:30,560 --> 01:37:39,760
that sound, will y'all consider u
putting an extra sound wall some an

1081
01:37:37,199 --> 01:37:43,199
extra one?
>> Yeah, it it goes back to, you know,

1082
01:37:41,920 --> 01:37:46,960
we're not going to add any noise
pollution to it. I mean, it's not

1083
01:37:45,600 --> 01:37:51,199
something that you're going to hear a
noise from that data center at all. I

1084
01:37:49,119 --> 01:37:54,159
mean, even at the the property line, I
seriously doubt anybody in the community

1085
01:37:52,480 --> 01:37:57,199
is going to hear anything. But if it is
something that is, you know, a hindrance

1086
01:37:56,080 --> 01:38:00,480
and it is something that we would look
into, yes.

1087
01:37:58,159 --> 01:38:06,480
» But what I'm saying, and I know that
that he asked you for a sound burial,

1088
01:38:03,600 --> 01:38:11,760
but if the community is not happy with
the sound, will y'all consider putting

1089
01:38:09,040 --> 01:38:14,400
another one?
>> We would definitely look at that. I

1090
01:38:13,360 --> 01:38:17,199
can't say that. that sound.
>> I mean, if somebody just comes in and

1091
01:38:15,840 --> 01:38:20,239
say like people are yelling and they
want a sound barrier, that doesn't

1092
01:38:18,400 --> 01:38:23,360
really make a lot of sense. If the data
backs it up and things along those

1093
01:38:21,600 --> 01:38:26,400
lines, then absolutely we'll look at
that and we'll talk about vegetation

1094
01:38:24,639 --> 01:38:30,560
that we could put up in natural stuff
to, you know, reduce noise pollution and

1095
01:38:28,000 --> 01:38:33,199
stuff along those lines. I think it be a
huge wall around it would probably be

1096
01:38:31,920 --> 01:38:36,320
more of an eyesore than the data center
itself.

1097
01:38:34,239 --> 01:38:40,159
» The city had an ordinance at a certain
decel um they would absolutely have to

1098
01:38:38,560 --> 01:38:44,639
follow the ordinance within city limits
and they would have to mitigate the

1099
01:38:41,520 --> 01:38:48,639
sound. So, We're going to go every every
way we can to mitigate the sound as much

1100
01:38:46,239 --> 01:38:51,199
as possible. Um, you know, going back to
what I was saying, the sound from a data

1101
01:38:50,159 --> 01:38:54,880
center, you're not going to hear any of
the machine sound from outside the data

1102
01:38:52,800 --> 01:38:58,880
center. Um, and then the generators is,
you know, possibly a 15-minute run once

1103
01:38:57,040 --> 01:39:03,639
a month per generator. And we're not
talking about very many generators on

1104
01:39:00,239 --> 01:39:03,639
this site anyways.

1105
01:39:06,560 --> 01:39:11,760
» Gas plants nearby, right?
>> Yeah, that's that's probably accurate.

1106
01:39:09,920 --> 01:39:17,159
I've never I'm not familiar with the gas
plant, but I am familiar with data

1107
01:39:13,199 --> 01:39:17,159
centers. Yeah,

1108
01:39:19,280 --> 01:39:25,440
» it probably probably quieter than that,
I would imagine. Like I said, the the

1109
01:39:23,440 --> 01:39:27,760
generator test runs are 15 minutes a
month and you can stand outside the

1110
01:39:26,639 --> 01:39:35,800
generator and you and I can have a
conversation without yelling.

1111
01:39:30,880 --> 01:39:35,800
Go ahead. I'm sorry. Go ahead.

1112
01:39:47,119 --> 01:39:58,400
the the reason for any of our data
center locations is related to um Urkott

1113
01:39:53,760 --> 01:40:02,080
and the utility a um
in fact Bill Bleven's worked for URKT

1114
01:40:00,880 --> 01:40:09,119
for 20 years so I'm gonna let him answer
this monkey. Well, uh, yeah, thank you,

1115
01:40:06,560 --> 01:40:15,360
uh, for listening to us and actually
bringing your concerns. First,

1116
01:40:11,600 --> 01:40:21,360
» um, I'll say
really, I'm a native Texan. My family

1117
01:40:18,000 --> 01:40:23,199
lives in Texas. All of my family, could
you speak up, please? We can't hear you

1118
01:40:22,880 --> 01:40:26,639
better.
>> Sorry. Sorry.

1119
01:40:24,159 --> 01:40:33,280
» Yeah, I'll get louder. Um, I'm usually
told to quiet down, but anyway. Um, so I

1120
01:40:30,000 --> 01:40:38,880
take electricity and reliability
as very important. Um,

1121
01:40:36,639 --> 01:40:44,400
I've dealt with a lot of things from the
power grid having operated it for 20

1122
01:40:41,199 --> 01:40:48,400
years. Um, worked in the Navy on nuclear
submarine, worked at our nuclear power

1123
01:40:46,159 --> 01:40:54,719
plants in the state, worked at the
national regulator for the electric

1124
01:40:51,119 --> 01:40:58,960
grid. Um, and reliability is very
important. So, I want to say that just

1125
01:40:56,239 --> 01:41:07,440
right off the top. When your power is
out, my family's power is out, too.

1126
01:41:03,600 --> 01:41:12,880
So, there's no more motivation than your
own family, right? So, with that, when I

1127
01:41:11,040 --> 01:41:17,119
came to Cipher, really, I I really
looked into where they were making

1128
01:41:15,360 --> 01:41:23,920
community connections and how they were
working. Um, I was very supportive of

1129
01:41:21,600 --> 01:41:27,920
the fact how they go to the communities
and actually address the problems. But

1130
01:41:26,239 --> 01:41:33,600
the real reason that all these data
centers are coming to Texas goes back 10

1131
01:41:30,800 --> 01:41:37,520
years, even more. When we decided to
build those transmission lines for all

1132
01:41:35,199 --> 01:41:42,320
the renewables, that really lowered the
prices of electricity. Um, gave us a lot

1133
01:41:40,320 --> 01:41:48,159
of extra transmission capacity in the
state and we started seeing more

1134
01:41:45,119 --> 01:41:52,800
businesses coming. Um there was a lot of
oil and gas people came to us oh maybe

1135
01:41:50,960 --> 01:41:59,040
15 years ago and said we're going to
real drill a thousand wells for the next

1136
01:41:55,360 --> 01:42:03,840
20 years and guess what they have. All
that was because we did these things way

1137
01:42:01,679 --> 01:42:10,280
before and we built the infrastructure
before and that's just attracting all

1138
01:42:06,000 --> 01:42:10,280
this electricity consumption.

1139
01:42:15,760 --> 01:42:22,960
So, actually, we've heard I I if you
look at it, uh the communities that are

1140
01:42:21,119 --> 01:42:26,080
out in
out in the middle of nowhere, there's

1141
01:42:24,320 --> 01:42:30,400
people that say, "Why don't you build
them closer to town?" So, we've heard

1142
01:42:27,760 --> 01:42:36,000
both sides. The real reason is you have
electricity coming right close by and

1143
01:42:32,719 --> 01:42:40,400
there's an easy connection to the grid
because there's already electrical

1144
01:42:37,840 --> 01:42:45,600
substations and equipment and there's
the capacity because we did all these

1145
01:42:42,560 --> 01:42:51,360
upgrades many years ago. So if the
upgrades and the extra capacity wasn't

1146
01:42:47,520 --> 01:42:56,719
there, there'd be no home. Secondly, the
location is really picked more based on

1147
01:42:53,920 --> 01:43:01,239
what the utility has close by and that
kind of drives to where we would

1148
01:42:58,239 --> 01:43:01,239
connect.

1149
01:43:08,080 --> 01:43:14,000
» No, ma'am. Data centers don't really
prevent like have uh incidences where

1150
01:43:11,760 --> 01:43:16,560
that kind of happens. Um, for example,
the site that we're inviting everybody

1151
01:43:15,199 --> 01:43:20,159
to during construction right now, we
have 3 million manh hours under active

1152
01:43:18,560 --> 01:43:24,480
construction without any loss times or
any recordable injuries. That's a huge

1153
01:43:22,400 --> 01:43:27,440
milestone in the construction industry.
And then once it gets turned over to

1154
01:43:25,760 --> 01:43:30,639
operations, it's actually a pretty safe
operation. And we have a, you know,

1155
01:43:28,639 --> 01:43:36,360
complete safety department that is on
top of that and industry standards and

1156
01:43:32,320 --> 01:43:36,360
stuff along those lines as well

1157
01:43:37,600 --> 01:43:44,239
to the the event. Yeah, absolutely.
Would would love to host you. Yes,

1158
01:43:41,840 --> 01:43:44,239
ma'am.

1159
01:43:44,800 --> 01:43:51,280
two items, one on the power grid and one
on the tour. Um, bear in mind the one

1160
01:43:49,280 --> 01:43:56,080
that you going to go see is four times
larger than the one we're planning to to

1161
01:43:53,040 --> 01:44:00,800
build here. So, it will look very big.
Um, just want to prepare you guys for

1162
01:43:58,480 --> 01:44:07,199
that. This one is 70 megawatts. That one
is 300 um on the power grid. So about a

1163
01:44:05,440 --> 01:44:12,719
year and a half ago in the same piece of
legislation that um and the subsequent

1164
01:44:10,960 --> 01:44:17,119
rulemakings that the public utility
commission did, it's called Senate Bill

1165
01:44:14,639 --> 01:44:22,400
6. So the public utility commission now
requires any large load to pay 100% of

1166
01:44:20,000 --> 01:44:27,520
their transmission uh upgrades. So if
there is a transmission infrastructure,

1167
01:44:24,880 --> 01:44:32,560
a substation or or transmission lines
that need to be upgraded for us to come

1168
01:44:29,360 --> 01:44:37,440
into a you know to to interconnect to
the grid, we pay 100% of that. Prior to

1169
01:44:35,600 --> 01:44:41,040
that legislation, a large load could
come. And the reason why there's a a lot

1170
01:44:39,840 --> 01:44:47,199
of people saying this is going to
increase power prices is prior to that

1171
01:44:44,239 --> 01:44:51,280
if a large load came that cost to add
that large load would be socialized to

1172
01:44:49,679 --> 01:44:58,320
all of the rate payers that were already
there. Just like when a residential

1173
01:44:54,560 --> 01:45:03,199
neighborhood is added to Cula, um their
sub the substation buildout that they

1174
01:45:00,320 --> 01:45:07,440
that residential neighborhood requires
that y'all are all going to see that in

1175
01:45:05,119 --> 01:45:12,159
your um a
uh transmission and distribution charges

1176
01:45:10,080 --> 01:45:15,920
go up maybe 10% or something, right?
Because they're trying to cover the cost

1177
01:45:14,000 --> 01:45:21,840
of building that substation. But for
large loads like data centers, as of the

1178
01:45:19,040 --> 01:45:25,199
last two years, we cover 100% of our
interconnection costs. Really not even

1179
01:45:23,199 --> 01:45:32,080
the last two within the last 12 months
really. So in for for Las County for

1180
01:45:28,960 --> 01:45:36,320
this facility which Cipher calls Revy.
So if y'all see the name Revy, we're

1181
01:45:34,159 --> 01:45:40,320
referring to the our proposed data
center here. We've paid 100% of the

1182
01:45:38,880 --> 01:45:43,960
transmission interconnection costs
already to a

1183
01:46:29,280 --> 01:46:36,639
It's a great question. So, we provided
uh and we can provide additional details

1184
01:46:34,000 --> 01:46:40,960
about the depreciation schedule and how
much we expect the data center to be

1185
01:46:38,800 --> 01:46:45,360
worth in any given year. But the
majority of those taxes are are two

1186
01:46:42,880 --> 01:46:49,280
ways. Property taxes on real property
and personal property. And the third or

1187
01:46:47,840 --> 01:46:53,920
the second really I guess there's three
ways. real taxes on personal property,

1188
01:46:51,199 --> 01:46:58,000
real t or property taxes on on personal
property. And then the third is sales

1189
01:46:55,520 --> 01:47:04,719
taxes. So Lasowl County doesn't have a
tax rate, but Cula has a 2% sales tax

1190
01:47:00,480 --> 01:47:11,119
rate on top of the state's uh 6.25.
So um anytime we buy equipment, we pay

1191
01:47:08,480 --> 01:47:14,800
sales taxes on it and then we also pay
property taxes on the increased value.

1192
01:47:13,520 --> 01:47:19,679
So right now the land that we've
purchased probably pays about $1,000 a

1193
01:47:17,119 --> 01:47:23,199
year in property taxes. When we build
this data center, the data center alone

1194
01:47:21,600 --> 01:47:28,159
is going to be worth over a billion
dollars. The computers that go inside

1195
01:47:25,600 --> 01:47:33,679
the data center will be worth perhaps $2
billion, total of three billion. So that

1196
01:47:31,119 --> 01:47:39,520
is you're you're taxing that asset from
a property tax perspective. You're also

1197
01:47:35,760 --> 01:47:44,960
taxing the computers and the air cooled
chillers and the the generators, switch

1198
01:47:42,800 --> 01:47:49,920
gears, transfers. That's all being taxed
also on a sales tax basis. That's why

1199
01:47:47,280 --> 01:47:56,600
it's incredibly inexpensive for us to
build in the county because we don't

1200
01:47:51,920 --> 01:47:56,600
have to pay sales tax on any of that.

1201
01:47:57,600 --> 01:48:02,960
» Yes, that's exactly what I was going to
say.

1202
01:48:00,960 --> 01:48:06,560
» As I understand it, it's based on where
it lands.

1203
01:48:04,560 --> 01:48:09,880
» No, where you're buying.
>> Where are you buying?

1204
01:48:11,520 --> 01:48:17,840
» So, no. No,
>> you have to purchase it from here. fee

1205
01:48:15,360 --> 01:48:24,639
where for example
if if a server comes into Kula to the

1206
01:48:21,440 --> 01:48:27,840
airport for example it's going to be tax
for the city

1207
01:48:26,000 --> 01:48:32,000
» we should clarify that but our tax
consultants have told us that it's where

1208
01:48:29,600 --> 01:48:36,159
where it lands the ending destination so
like if we're buying something from

1209
01:48:34,560 --> 01:48:42,080
Malaysia
for a data center in Cula we pay sales

1210
01:48:38,960 --> 01:48:46,239
taxes when it comes to Cula now I am not
a tax expert so we will bring to the

1211
01:48:44,080 --> 01:48:49,520
town hall, we will bring our tax
consultants there and they can answer

1212
01:48:47,600 --> 01:48:55,840
those questions. But I'm fairly sure in
fact we're we are paying sales taxes in

1213
01:48:53,360 --> 01:49:01,040
other communities. So
that is if if the

1214
01:48:59,840 --> 01:49:05,440
equipment as well.
>> Let let me get uh let me get council to

1215
01:49:03,840 --> 01:49:10,320
let me get council Steve. Do you have
anything on that for permission?

1216
01:49:07,119 --> 01:49:17,040
to what Jeff's noted uh who you will be
hearing from later tonight and there are

1217
01:49:13,440 --> 01:49:22,320
agreements where the the the additional
2% is collected here. So the six and the

1218
01:49:20,480 --> 01:49:27,040
quarter I think you're right it does get
collected where where they're getting it

1219
01:49:24,320 --> 01:49:32,960
from but when it lands here we get the
additional two.

1220
01:49:29,840 --> 01:49:42,080
» It is yes that the the tax code allows
you to do that. Uh Jeff told me

1221
01:49:37,440 --> 01:49:47,760
uh that he actually was on the EDC
in U McKenna I believe when they built

1222
01:49:45,520 --> 01:49:53,280
the Dallas Star Complex there for the
Cowboys and they had an agreement like

1223
01:49:50,320 --> 01:49:58,960
that so that they collected those taxes
in that community. And so that that is a

1224
01:49:56,159 --> 01:50:03,920
very sophisticated agreement, but it
absolutely will get done. And that's

1225
01:50:00,639 --> 01:50:09,679
actually what Jeff has been hired to do
is to lay all that out and then at some

1226
01:50:06,400 --> 01:50:15,760
point once he comes with the proposals,
we'll put it in what's called a 380

1227
01:50:11,760 --> 01:50:20,400
agreement with uh Cyper or whoever it is
that's going to be running the place. So

1228
01:50:18,320 --> 01:50:25,119
all of those are public records. that
that document gets filed with the

1229
01:50:22,320 --> 01:50:30,960
controllers's office and they interface
with the controller on all of the sales

1230
01:50:28,239 --> 01:50:37,760
taxes and and things that sort. So,
that's a good question and um but uh I

1231
01:50:35,920 --> 01:50:43,360
guess contemplating things like this
there there's ways around it. Uh I did

1232
01:50:40,719 --> 01:50:48,880
talk to Mr. page at the EDC meeting a
couple of weeks ago and he indicated

1233
01:50:46,400 --> 01:50:54,480
that a lot of the inventory
uh will come directly to the airport and

1234
01:50:52,080 --> 01:50:57,920
it will be flown in and he indicated to
me now I don't know if any of this is in

1235
01:50:56,239 --> 01:51:01,040
writing but they're going to build
warehouses out there. They're going to

1236
01:50:59,520 --> 01:51:06,719
have the equipment there. All of that
stuff gets taxed and the and and the

1237
01:51:03,840 --> 01:51:12,159
airport is in the city limits. So all of
that stuff flows through to the city.

1238
01:51:09,840 --> 01:51:17,840
our our airport director's name is uh
Mr. Paige. So the CEO of Cipher Digital,

1239
01:51:15,760 --> 01:51:22,560
his last name is also Paige, just to
clarify.

1240
01:51:18,639 --> 01:51:27,760
» Yes. Yeah. You know, Mr. Bzer, uh I I
believe one of the the the the

1241
01:51:24,880 --> 01:51:31,760
community's more pressing needs is a
hospital,

1242
01:51:29,440 --> 01:51:36,239
you know, and obviously we're not asking
Cyper Digital to build a hospital, but

1243
01:51:34,480 --> 01:51:42,239
those are the kinds of things that the
city has not had for years. I believe

1244
01:51:39,360 --> 01:51:49,119
the closest hospital was Pierall which
is about 30 miles away and and and that

1245
01:51:45,920 --> 01:51:55,280
absolutely I think you know I don't want
to speak for everybody but that's a big

1246
01:51:51,920 --> 01:52:00,960
deal you know and we don't even have e
emergency we got nothing here you know

1247
01:51:58,719 --> 01:52:05,119
the more that can be done to bring those
kinds of things in even if those are

1248
01:52:02,719 --> 01:52:08,960
city other agreements that the city
makes at some point th those are

1249
01:52:07,760 --> 01:52:13,440
critical
the health care is is almost

1250
01:52:10,800 --> 01:52:17,119
non-existent for at least emergency
healthare.

1251
01:52:14,800 --> 01:52:19,920
» Is there a hospital district taxing
entity

1252
01:52:18,639 --> 01:52:25,280
in the area
>> at at this time? There is not in 2015.

1253
01:52:22,800 --> 01:52:29,920
It was uh it was contemplated. Uh it
never went out to election. Um but the

1254
01:52:28,159 --> 01:52:35,040
city has worked on it in the past. It
just never went out to election.

1255
01:52:31,760 --> 01:52:38,239
» There there is an we do have it. Uh
where it stands honestly I don't know.

1256
01:52:37,119 --> 01:52:42,159
There was
an election that was supposed to occur

1257
01:52:40,080 --> 01:52:48,560
at the county level that never occurred.
Uh we're talking probably 10 years ago.

1258
01:52:45,520 --> 01:52:51,920
But but you want to make people happy.
So talk about house

1259
01:52:50,159 --> 01:52:55,599
» there. There's two concepts that I could
share. One is I I believe Cul is the

1260
01:52:54,159 --> 01:53:01,280
county seat of Las County. Is that
correct? Um so we'll we will not seek an

1261
01:52:59,599 --> 01:53:06,800
abatement property tax abatement from
the county. So they will get significant

1262
01:53:02,880 --> 01:53:12,239
revenue as well. uh the and to do with
as they choose as the county

1263
01:53:09,360 --> 01:53:15,760
commissioners choose. I think Cula would
probably have a pretty good argument to

1264
01:53:13,360 --> 01:53:22,000
go to them and say, "Hey, this is uh an
immediate need." The other thing, um, we

1265
01:53:19,360 --> 01:53:28,400
certainly can't contemplate this outside
of conversations with the Cula ISD

1266
01:53:24,560 --> 01:53:33,360
school board, but if the Cula ISD is
going to receive a lot of tax revenue,

1267
01:53:30,880 --> 01:53:38,400
if they receive past a certain amount,
then Robin Hood takes some of that back

1268
01:53:36,080 --> 01:53:41,840
to Austin.
You

1269
01:53:39,920 --> 01:53:46,960
we have a board member here, so you're
very familiar. So we certainly want

1270
01:53:44,400 --> 01:53:51,360
CulaD to take as take in as much revenue
as possible. Cipher Digital does not

1271
01:53:49,599 --> 01:53:55,679
have an opinion about what happens to
the overage. It's a shame that it

1272
01:53:53,520 --> 01:54:02,400
doesn't stay in the community. There is
a mechanism called a tax increment

1273
01:53:57,679 --> 01:54:07,360
financing that if if um the school board
so chose they could earmark certain

1274
01:54:05,199 --> 01:54:11,280
amounts of revenue and this is pre uh
Robin Hood money. So this does not count

1275
01:54:09,679 --> 01:54:16,000
towards the amount that would go back to
Austin. could earmark it for a

1276
01:54:13,360 --> 01:54:19,920
reinvestment zone and do anything that
the school board decides to do with it,

1277
01:54:18,080 --> 01:54:24,320
including building medical
infrastructure.

1278
01:54:21,520 --> 01:54:27,199
Uh I have never heard of a school board
building medical infrastructure with

1279
01:54:25,920 --> 01:54:32,719
that money, but I've heard of them
building water infrastructure, roads,

1280
01:54:30,000 --> 01:54:35,920
stadiums. Um so we could get with our
tax experts. Just because we've never

1281
01:54:34,639 --> 01:54:40,320
heard of it doesn't mean it can't be
done. Um, so there is a possibility that

1282
01:54:38,719 --> 01:54:45,920
the significant revenue that would be
going to the school district could a

1283
01:54:42,400 --> 01:54:51,679
portion of that could be diverted to
medical facilities.

1284
01:54:48,480 --> 01:54:56,239
» I have a question.
I have a question.

1285
01:54:54,159 --> 01:55:01,520
I'm hearing that the city will be
picking up bulk of the amount. Like for

1286
01:54:58,880 --> 01:55:07,520
example, the people that we that you all
introduced that to go C CFO to go that

1287
01:55:05,119 --> 01:55:12,639
we were going to have to pay them to to
do all of this all this stuff with uh

1288
01:55:10,480 --> 01:55:15,840
Cipher, right? They're going to build
the team. So you're telling me that the

1289
01:55:14,320 --> 01:55:19,840
county doesn't pay any of that and the
school doesn't pay any of that? I mean,

1290
01:55:17,199 --> 01:55:24,080
so we pick up the blunt of the pay and I
want to know what is the turnaround of

1291
01:55:22,000 --> 01:55:28,400
that money coming back to us because at
this point again I'm going to say it

1292
01:55:25,520 --> 01:55:32,320
again. I do not know how healthy our
budget is.

1293
01:55:29,920 --> 01:55:35,280
» So the the uh county's deal we're going
to have to bring up that here in a

1294
01:55:33,520 --> 01:55:39,520
second also Lee to give them that part
of the presentation. But um the county's

1295
01:55:37,760 --> 01:55:43,119
deal and the city's deals are separate.
Uh we may intermingle people but the

1296
01:55:41,760 --> 01:55:46,239
county's going to pay their portion, the
school's going to pay their portion, the

1297
01:55:44,320 --> 01:55:51,840
city's going to pay their portion. But
in lie of that, Cipher Digital actually

1298
01:55:49,040 --> 01:55:55,679
and they're offering also to pay any
people that we need any kind of soft

1299
01:55:53,520 --> 01:55:59,679
fund or any kind of thing that we need
to take care of the people that we need

1300
01:55:57,599 --> 01:56:02,880
to negotiate with them.
>> Um, if you want to speak on that a

1301
01:56:01,199 --> 01:56:06,880
little bit, I mean, I could say it, but
you can go ahead and say it yourself.

1302
01:56:04,320 --> 01:56:11,760
» Sure. We're happy to cover uh legal fees
or consulting fees for people that work

1303
01:56:09,599 --> 01:56:16,080
for you guys. Uh, just because we pay
for them doesn't mean that they work for

1304
01:56:13,119 --> 01:56:20,320
us. they would be contracted um and and
work for you all as the city council to

1305
01:56:18,320 --> 01:56:24,159
negotiate on on the city council's
behalf. Uh and again, I want to

1306
01:56:22,400 --> 01:56:28,320
reiterate,
we don't want to put um a tremendous

1307
01:56:26,400 --> 01:56:34,000
amount of pressure on the community or
the city council to vote on a debatement

1308
01:56:31,520 --> 01:56:41,360
that's very contentious. Uh that puts
you guys in a in a tough situation. Um I

1309
01:56:36,800 --> 01:56:46,800
do want to also share though that um
there there are mechanisms through that

1310
01:56:43,679 --> 01:56:55,280
abatement that you guys can use to uh
really force us to um

1311
01:56:51,040 --> 01:57:00,239
um you you can create ordinances
that have severe financial pen penalty

1312
01:56:57,599 --> 01:57:06,639
should we not abide by. So, sound water
consumption, things of that nature. And

1313
01:57:02,320 --> 01:57:10,239
and um my executive team does want to
pay more taxes and they do want to be in

1314
01:57:08,320 --> 01:57:14,239
city limits. Uh if there isn't an
abatement, I cannot promise that we will

1315
01:57:12,159 --> 01:57:18,159
be in the city because the tax burden in
the county is so much lighter and we

1316
01:57:15,920 --> 01:57:22,480
already own real estate um in the
county. And so, um

1317
01:57:20,719 --> 01:57:25,520
» is that a threat? Are you saying that
you're going to because we don't decide

1318
01:57:24,080 --> 01:57:29,679
that you're going to go with the county?
>> No, I I do not want it to come across

1319
01:57:27,599 --> 01:57:34,239
that way. There is a
>> I apologize.

1320
01:57:31,360 --> 01:57:38,800
» Well, go ahead. Are you through, ma'am?
I want to let you finish.

1321
01:57:36,320 --> 01:57:43,440
» Uh, and here's my question. You know,
and and I've done a little bit of

1322
01:57:40,239 --> 01:57:47,599
research through the tax office and
everything. Um, you know, I've heard

1323
01:57:45,440 --> 01:57:51,040
that if you don't build it in the city,
you going to go across the highway.

1324
01:57:48,880 --> 01:57:57,280
Well, pack your bag. That's the way I
look at it. And as far as I'm concerned,

1325
01:57:53,440 --> 01:58:01,360
uh the property from what I'm gathering
that y'all have already purchased or

1326
01:57:59,920 --> 01:58:05,119
maybe leased. I don't think it's
purchased. I think it's leased. Uh have

1327
01:58:03,599 --> 01:58:08,560
y'all purchased property across the
highway?

1328
01:58:06,800 --> 01:58:13,280
» Believe we have leased property on the
west side and um purchased property on

1329
01:58:12,159 --> 01:58:18,560
the east side.
>> Okay. So, and I want to back up a little

1330
01:58:15,679 --> 01:58:22,159
bit. Um you you mentioned a word while
ago, chillers. Are y'all bringing smart

1331
01:58:20,560 --> 01:58:25,280
chillers in for this? And what's the
dec? Yeah.

1332
01:58:23,599 --> 01:58:29,119
» Uh, we use typically air cooled
chillers, do we not?

1333
01:58:27,280 --> 01:58:33,679
» And what is the decibel level going to
be on something like that?

1334
01:58:32,159 --> 01:58:36,880
» Every manufacturer has different decibel
levels, but we can get that information

1335
01:58:35,119 --> 01:58:40,560
to you during the town hall.
>> Because you have high frequency levels

1336
01:58:38,800 --> 01:58:43,040
and then you have low frequency levels.
>> Yes, sir.

1337
01:58:40,960 --> 01:58:46,960
» The the low frequency the high frequency
everybody can hear. The train going by

1338
01:58:44,800 --> 01:58:53,119
the high frequency. The low frequency is
what you can't hear. That's it's this

1339
01:58:49,760 --> 01:58:58,000
hum. It's a vibrant. Those low frequency
levels go around objects. They don't go

1340
01:58:56,080 --> 01:59:02,880
to that wall and stop. Absolutely. Like
a sound wall. It goes around and they

1341
01:59:00,480 --> 01:59:07,360
can travel for miles and miles.
>> How do y'all stop that?

1342
01:59:05,199 --> 01:59:11,840
» Yeah. It's one of those things that I've
never seen a study to where it's to a

1343
01:59:10,639 --> 01:59:14,719
point to where it's actually affecting
anything outside of property limits and

1344
01:59:13,360 --> 01:59:18,560
things along those lines. But this is
also going back to the sound study that

1345
01:59:16,400 --> 01:59:20,639
we'll do pre previous and afterwards as
well.

1346
01:59:18,880 --> 01:59:27,760
» Here here's the thing on that the low
frequency levels they have called

1347
01:59:23,520 --> 01:59:33,280
headaches, sleep deprivation, migraines,
vertigo and anxiety and such. So so

1348
01:59:31,920 --> 01:59:36,159
are y'all going to pay for the medical
bills when these people start getting

1349
01:59:34,800 --> 01:59:39,840
sick?
>> Well, I don't know if we can, you know,

1350
01:59:38,080 --> 01:59:44,400
take people getting sick back to the
data center itself. Um, you know, I I

1351
01:59:42,239 --> 01:59:47,679
understand where the concern is, but
like for us to have a blanket statement

1352
01:59:46,400 --> 01:59:52,239
saying we're going to provide medical
coverage, we can't do that.

1353
01:59:50,560 --> 01:59:56,800
» And then, you know, you're saying that
you're you're going to bring in uh stuff

1354
01:59:54,320 --> 02:00:00,239
to the airport. Um, is that going to be
your chemicals that you're going to be

1355
01:59:58,159 --> 02:00:03,280
flying in for this uh closed loop
system?

1356
02:00:01,920 --> 02:00:06,320
» No, I don't think the chemicals be
getting flown in. They'll probably get

1357
02:00:04,320 --> 02:00:09,119
trucked in, but we're not talking about
any chemicals that you wouldn't see at

1358
02:00:07,679 --> 02:00:13,040
any industrial complex. It's not
chemicals that we're trying to hide.

1359
02:00:10,639 --> 02:00:16,080
We'll have SDS uh sheets available and
have all that pre-approved. It'll be,

1360
02:00:14,639 --> 02:00:19,280
you know, OSHA regulated and things
along those lines as well.

1361
02:00:17,520 --> 02:00:24,159
» Are are the chemicals for the water are
you talking like orthopolyphosphates and

1362
02:00:21,440 --> 02:00:26,800
things like that?
>> I'm sorry, what was the question?

1363
02:00:25,199 --> 02:00:29,679
» So, the chemicals that you are going to
be using that would be for the water

1364
02:00:28,080 --> 02:00:34,159
treatment. So, you'd be talking about
orthopolyphosphates and uh just

1365
02:00:31,920 --> 02:00:37,440
different typically we have a chemical
treatment company come in and monitor

1366
02:00:35,920 --> 02:00:41,040
that and do all that kind of stuff. So
like exactly which chemicals they're

1367
02:00:39,280 --> 02:00:44,639
going to be using. I mean we can bring
that people to us with the uh town hall

1368
02:00:43,280 --> 02:00:48,239
as well. So that way we can have those
questions answered immediately. But I

1369
02:00:46,080 --> 02:00:52,560
mean it'll be stored properly for per
OSHA regulations uh spill containment

1370
02:00:50,560 --> 02:00:57,360
everything like that associated with it.
>> So you you purchased for you're you're

1371
02:00:54,480 --> 02:01:01,280
saying it's going to be a 70 megawatt
type facility. What about expansion? Do

1372
02:00:59,520 --> 02:01:06,520
y'all plan on trying to expand this
thing as as things go along?

1373
02:01:06,560 --> 02:01:14,239
» At this time, there is no capacity for
expansion. We have no plans to expand

1374
02:01:12,400 --> 02:01:15,599
» at this time.
>> At this time,

1375
02:01:14,960 --> 02:01:19,560
» sir,
>> that's correct.

1376
02:01:16,320 --> 02:01:19,560
» Okay, sir.

1377
02:01:19,599 --> 02:01:27,520
» Okay. And and here here's another thing.
This facility

1378
02:01:24,800 --> 02:01:34,719
» Oh, I'm sorry. This facility is going to
be a pretty huge facility for Coutula's

1379
02:01:30,480 --> 02:01:40,320
U bill. Worst case scenario, fire breaks
out. It's all electrical stuff. What

1380
02:01:38,080 --> 02:01:45,679
type of suppression system do you have
to contain that? And also, if you need

1381
02:01:43,440 --> 02:01:50,880
outside assistance, are you willing to
help with the county to get that type

1382
02:01:48,480 --> 02:01:54,080
because I don't think we're equipped in
any of the surrounding communities to

1383
02:01:52,560 --> 02:01:57,119
handle something like that.
>> Yeah, that's a great question. And um

1384
02:01:55,760 --> 02:02:00,639
you know, we've actually partnered with
Colorado City, the place where we're

1385
02:01:58,639 --> 02:02:03,760
building a 300 megawatt site. And we
have uh made donations to the local fire

1386
02:02:02,560 --> 02:02:06,880
departments, the volunteer fire
departments to have them the correct

1387
02:02:05,119 --> 02:02:10,400
equipment to respond to these things and
actually have a warehouse we're building

1388
02:02:08,719 --> 02:02:13,599
on site to have that stuff. So that way
if something were to happen and provide

1389
02:02:12,480 --> 02:02:16,880
training for those volunteer
firefighters as well to be able to come

1390
02:02:14,960 --> 02:02:21,119
in and do it. But as far as the fire
suppression system goes as well, it's

1391
02:02:19,040 --> 02:02:24,639
all like a uh double interlock system to
where it would put out the fire uh for

1392
02:02:23,199 --> 02:02:27,920
the most part. And if we did have to,
you know, bring the fire department on

1393
02:02:26,080 --> 02:02:31,440
site, we're providing training and, you
know, opportunities for them and having

1394
02:02:29,280 --> 02:02:34,800
that hosted on our site as well as
making sure the volunteer fire been, I'm

1395
02:02:33,679 --> 02:02:38,080
assuming it's a volunteer fire
department here, um, making

1396
02:02:36,480 --> 02:02:40,800
contributions as well to make sure that
your equipment is satisfactory to be

1397
02:02:39,920 --> 02:02:44,239
able to respond.
>> And they're currently in a restructuring

1398
02:02:42,560 --> 02:02:49,599
situation, so this is a perfect
opportunity to get them up to par. And

1399
02:02:46,560 --> 02:02:52,480
and last but not least, uh you know, you
you did say that every once in a while,

1400
02:02:51,360 --> 02:02:57,440
periodically, you're going to have to
fire up your generators. Uh does it have

1401
02:02:54,719 --> 02:03:03,199
backup power for battery access? And if
so, are those batteries uh if there are

1402
02:03:00,239 --> 02:03:05,920
any, are they lithium batteries or uh
how?

1403
02:03:03,760 --> 02:03:08,880
» Yeah, typically on the server racks
themselves, they're lithium ion

1404
02:03:07,040 --> 02:03:12,880
batteries that are inside the data hall
themselves. And this fire discretion

1405
02:03:10,400 --> 02:03:17,360
system is, you know, built to handle
those things. and also the uh the air

1406
02:03:15,840 --> 02:03:22,159
circulation and things like that just
for all that ozone aspect of it.

1407
02:03:19,920 --> 02:03:30,400
» I have a question for going back on
expansion uh

1408
02:03:26,400 --> 02:03:35,119
after um if it gets done
if it gets done

1409
02:03:32,480 --> 02:03:40,480
can we make a deal that
there will be no more expansion.

1410
02:03:37,520 --> 02:03:46,880
It's one of them. um having it on black,
black and white, the water will will not

1411
02:03:42,719 --> 02:03:50,560
be touched and on power.
>> Yeah, like Lee said, like as of right

1412
02:03:49,119 --> 02:03:54,719
now, there is not any more power
available. We're not actually looking

1413
02:03:52,159 --> 02:03:59,360
for an expansion of this site. We're not
anticipating an an expansion of this

1414
02:03:56,800 --> 02:04:02,880
site. Um so
probably we sign. I can't I can't I

1415
02:04:01,599 --> 02:04:08,400
can't speak on behalf of the company and
the investor right now. no expansion

1416
02:04:06,639 --> 02:04:11,840
if this if this passes
>> as of right now there is no expansions

1417
02:04:10,320 --> 02:04:17,920
even being contemplated or
>> this is this is one thing that that that

1418
02:04:15,280 --> 02:04:25,119
were and I'm speaking for our our people
as well that I mean once this gets done

1419
02:04:21,679 --> 02:04:30,080
» right once this gets done there will no
be be no more expansion

1420
02:04:27,840 --> 02:04:36,400
» and and I went in a black and white
>> right one of the things if if the

1421
02:04:33,599 --> 02:04:41,280
council does see it see fit to create an
abatement, you could put that in the

1422
02:04:38,159 --> 02:04:45,760
abatement that the uh the site cannot
expand.

1423
02:04:42,800 --> 02:04:51,040
Um and then perhaps you could do a, you
know, two-year look back and it could be

1424
02:04:48,639 --> 02:04:56,080
a one-way street. If you guys decide to
allow us to expand, you could vote to

1425
02:04:52,719 --> 02:05:01,520
allow that. Of course, we can't come and
ask for it or, you know, we would not be

1426
02:04:58,560 --> 02:05:06,239
able to do that. Um, again, Lee and I
cannot speak for the company on related

1427
02:05:04,480 --> 02:05:10,480
to whether or not we would accept that,
but I think it's highly likely given

1428
02:05:08,639 --> 02:05:16,080
that we have no plans for expansion that
we would be willing to sign that um into

1429
02:05:14,639 --> 02:05:18,960
uh a contract.
>> Okay.

1430
02:05:16,719 --> 02:05:23,440
» And and we also feel very confident that
after two or three years, the community

1431
02:05:21,360 --> 02:05:27,840
would not mind. Perhaps you wouldn't be
saying yes, yes, expand. Um, but in

1432
02:05:26,560 --> 02:05:30,880
other communities in which we've
operated, and we said this several

1433
02:05:29,679 --> 02:05:34,880
times, you're probably hear tired of
hearing us saying it. They were hesitant

1434
02:05:32,880 --> 02:05:39,840
at first, but now they are asking for
expansions. Uh, we we were on Monday,

1435
02:05:37,440 --> 02:05:43,199
Bill and I were in Mitchell County and
at the county commissioner's court,

1436
02:05:41,280 --> 02:05:47,520
there were people at the commissioner's
court who had opposed us two years prior

1437
02:05:45,199 --> 02:05:51,760
who were there saying, "Yeah, we might
as well have another data center. Um, we

1438
02:05:50,320 --> 02:05:58,800
we liked what it's done for the hotel
taxes, for uh for the small businesses

1439
02:05:55,679 --> 02:06:04,880
in town, um, for the economic vibrancy
of the town. And, um, I think Cula is

1440
02:06:02,880 --> 02:06:09,199
more economically vibrant than um,
Colorado City and Mitchell County,

1441
02:06:06,400 --> 02:06:11,920
Texas. Um, if they were here, I'd say
that. I think they might be a little

1442
02:06:10,400 --> 02:06:16,880
offended by that, but they don't have
oil and gas there. They are just east of

1443
02:06:14,800 --> 02:06:21,920
the Peran Basin. So they look to the
west and see the Peran Basin and see all

1444
02:06:19,119 --> 02:06:26,400
the economic activity there and and have
been quite frustrated that the Peran

1445
02:06:23,840 --> 02:06:30,639
Basin did not reach them. This is
something that is is really driving

1446
02:06:28,560 --> 02:06:34,159
growth for for the town and I'll pull a
direct quote from one of the county

1447
02:06:32,079 --> 02:06:38,480
commissioners, Jeremy Strain. You'll
meet him when you go up in a couple

1448
02:06:36,239 --> 02:06:43,360
months or in a couple weeks. Uh his
quote was, "This town was dying. Now

1449
02:06:40,960 --> 02:06:46,639
it's growing." Now again, Cula is not
dying. you guys have a vibrant economy

1450
02:06:45,440 --> 02:06:52,320
here. So, it's a little bit different of
a situation. Uh, but it is a similar

1451
02:06:48,960 --> 02:06:55,679
size community about 3,500 people. Uh, I
guess they're actually probably more

1452
02:06:53,360 --> 02:07:00,079
like 4,400 and I think Cula is maybe
slightly under 4,000. But it's a similar

1453
02:06:57,679 --> 02:07:05,040
sized community um with similar
industries, ranching, farming, oil and

1454
02:07:02,880 --> 02:07:10,239
gas. Um, so there's a lot of
similarities between here and and there.

1455
02:07:07,520 --> 02:07:14,719
And that's why u we think that that
would be a good one for you guys to go

1456
02:07:11,440 --> 02:07:17,960
visit. Okay.
That's true.

1457
02:07:25,520 --> 02:07:32,360
We would welcome a third.
Yeah,

1458
02:07:35,040 --> 02:07:42,159
understood. Yeah, we we would welcome a
third party analysis of that. Um all of

1459
02:07:40,079 --> 02:07:48,320
the analysis that we've seen has shown
that any heat increase is is quite

1460
02:07:44,159 --> 02:07:53,040
negligible. Uh not even approaching 1%.
Right? So it's uh cities do get hotter

1461
02:07:51,119 --> 02:07:58,000
because there's a lot of concrete and
the sun just bakes cities more than it

1462
02:07:55,199 --> 02:08:04,400
does rural areas. So it does have add
some rooftop square footage. It does it

1463
02:08:00,320 --> 02:08:07,280
does contribute to that. Um but
again, you wouldn't want to take my word

1464
02:08:05,840 --> 02:08:12,400
for it. I think we should go get a third
party study from a university in the

1465
02:08:09,360 --> 02:08:16,239
area, but we've never seen it affect the
heat um in in any of the communities

1466
02:08:14,800 --> 02:08:23,079
that we've operated. And I'm also not
familiar with any study that has shown

1467
02:08:19,360 --> 02:08:23,079
that now.

1468
02:08:24,719 --> 02:08:30,400
» So,
>> but but but we wouldn't be contributing

1469
02:08:27,840 --> 02:08:35,520
to that uh additional over or above. It
is hot as hell in Texas. I agree. Um

1470
02:08:33,040 --> 02:08:38,880
just praying for October to get here. Uh
but our data center does not contribute

1471
02:08:37,360 --> 02:08:44,480
to the to the he of the community.
Again, don't take our word for it. We

1472
02:08:41,040 --> 02:08:48,800
will we will um commission a study with
a professor from a university of the

1473
02:08:46,560 --> 02:08:51,679
community's choice to look into that
further because we're very confident

1474
02:08:50,159 --> 02:08:53,840
that the findings would would
demonstrate there's there's no material

1475
02:08:53,280 --> 02:08:57,920
impact.
>> So am I hearing that maybe you have not

1476
02:08:55,599 --> 02:09:03,760
done a study, you have a 300 megawatt
facility already. Uh how has that

1477
02:09:00,239 --> 02:09:08,400
impacted your your heat at at all? it it
has not impacted it. Um we have two 300

1478
02:09:06,719 --> 02:09:13,599
megawatt facilities in Texas. One of
them is Wink um Texas which is out kind

1479
02:09:11,679 --> 02:09:20,400
of on the way towards El Paso. It's on
I20 to the west. Um that facility is up

1480
02:09:17,840 --> 02:09:24,000
and running and
is has not ris had any material impact.

1481
02:09:23,440 --> 02:09:28,719
Uh
>> so saying you you also mentioned that

1482
02:09:25,920 --> 02:09:33,679
that that one was already running on our
closed circuit right uh water system.

1483
02:09:31,679 --> 02:09:38,880
the one that you're you're taking us to
or or or the one that that is able to

1484
02:09:36,400 --> 02:09:43,599
take to right to go see. My question to
you is has any environmental studies

1485
02:09:41,280 --> 02:09:48,800
been done on that area and how it
affected your ecosystem

1486
02:09:46,000 --> 02:09:55,599
» as far as our 300 megawatt facilities?
>> Um we did conduct um ESA studies on

1487
02:09:52,400 --> 02:10:01,119
those uh areas before we built uh and we
will conduct subsequent studies in the

1488
02:09:57,679 --> 02:10:04,800
coming years. Um it is ranch land and we
we built on about 500 acres there which

1489
02:10:03,199 --> 02:10:10,480
is about 10 times the amount of acreage
that we would build on here. And even at

1490
02:10:06,880 --> 02:10:17,679
500 acres um there's cows nearby. It has
not affected the deer hunting um thus

1491
02:10:13,760 --> 02:10:22,159
far. Um so so we don't anticipate any
environmental impacts of that of that

1492
02:10:19,440 --> 02:10:26,560
nature, but we would certainly welcome
third party independent studies of that

1493
02:10:24,159 --> 02:10:31,440
to to ensure that's the case. What
happens is everything falls the stars

1494
02:10:29,119 --> 02:10:38,239
align this happens and everything else
and a change comes you sell you bail out

1495
02:10:35,119 --> 02:10:41,840
at at phase one and then what what are
we left with?

1496
02:10:39,199 --> 02:10:46,079
» It's a good question. So when we sign
data center leases you can go online

1497
02:10:43,760 --> 02:10:51,360
this is public we're a public company uh
publicly traded US company. We signed

1498
02:10:48,079 --> 02:10:54,560
10ear leases minimum. So um we don't
have any leases that are shorter than

1499
02:10:52,560 --> 02:10:59,360
that. Some of them are 15. We even have
one that's 15 years with a five-year

1500
02:10:56,480 --> 02:11:02,719
extension, so 20-year lease. Um, so that
gives a lot of certainty to the

1501
02:11:01,520 --> 02:11:09,199
community that we're going to be there
for a long time. Um, now after those 15

1502
02:11:06,400 --> 02:11:14,400
years, um, who knows what the world
looks like. We would certainly be open

1503
02:11:11,520 --> 02:11:19,920
to um creating a mechanism in any sort
of agreement that requires us to return

1504
02:11:16,239 --> 02:11:23,520
the land to its natural um
state

1505
02:11:21,119 --> 02:11:28,079
» if we were to choose to to decommission
the data center. So foundation

1506
02:11:26,159 --> 02:11:32,880
everything back to to native Texas
grassland. Um we don't anticipate that

1507
02:11:31,440 --> 02:11:37,440
happening. There's a lot of demand for
data centers. So you know should should

1508
02:11:34,800 --> 02:11:42,400
this data center be built, we anticipate
it to be used for for many years. Uh but

1509
02:11:40,239 --> 02:11:47,040
if that is the case, we're we're open to
writing that into the agreement.

1510
02:11:43,840 --> 02:11:52,000
» And so you see uh this community's uh
fear because it's fear. You know, you

1511
02:11:50,239 --> 02:11:56,320
just mentioned it. You don't know what's
going to happen in 15 years. So, as

1512
02:11:54,000 --> 02:12:02,480
being good stewards of this land that we
were given

1513
02:11:58,800 --> 02:12:08,079
and the things that are bad in the world
and the things that uh break things

1514
02:12:05,199 --> 02:12:12,960
down, our communities, our our our
woodlands, our you know, you name it,

1515
02:12:10,400 --> 02:12:16,320
water systems and everything else.
That's that's their concern. That's our

1516
02:12:15,040 --> 02:12:21,920
concern.
uh you would mitigate and and facilitate

1517
02:12:19,599 --> 02:12:27,400
anything and everything to to make sure
and ensure that our community is taken

1518
02:12:24,239 --> 02:12:27,400
care of.

1519
02:12:27,520 --> 02:12:33,199
» So I want the best interest for my
community that that is the utmost

1520
02:12:32,480 --> 02:12:37,040
importance.
>> Understood. whether whether our cattle

1521
02:12:35,199 --> 02:12:43,119
whether our people are being affected
whether every everything and so council

1522
02:12:40,800 --> 02:12:47,840
what I want you to know is that yes we
couldn't stop them from buying the land

1523
02:12:45,360 --> 02:12:53,199
purchasing the land leasing the land but
is it it is a very important that each

1524
02:12:50,639 --> 02:12:59,280
one of us and you said it Gilbert I got
family here they live here the elderly

1525
02:12:55,360 --> 02:13:05,280
our kids and I I participated in a what
where what where's Cula in 2015 right so

1526
02:13:02,719 --> 02:13:10,960
our kids are seeing what we're doing and
taking care of and and how they want

1527
02:13:08,320 --> 02:13:17,119
2050 because they will be here. We will
may may not but they will.

1528
02:13:14,079 --> 02:13:22,639
So our responsibility to this community
is that we take every action

1529
02:13:20,159 --> 02:13:26,400
instead of being reactionary.
But you've got the bylaws, you've got

1530
02:13:24,719 --> 02:13:31,360
the ordinances, you've got the
regulations, and those are the things

1531
02:13:28,560 --> 02:13:35,440
that we need to pay attention to so that
we're making the absolutely right

1532
02:13:33,360 --> 02:13:40,079
decision for every single person out
there. Right? So that's our biggest

1533
02:13:38,480 --> 02:13:45,040
responsibility.
Not to me, I'm on the way out. But what

1534
02:13:42,480 --> 02:13:52,159
about our kids? What about my nieces and
nephews? What about 2050? And I would

1535
02:13:49,520 --> 02:13:58,800
love to see the picture the kids had
posted for 2050. They want to to capture

1536
02:13:56,320 --> 02:14:05,119
rainwater. They want to start their own
gardens. They want to start, you know,

1537
02:14:01,599 --> 02:14:10,079
uh have more here in the community. They
want hospitals. They want an HB. They

1538
02:14:07,840 --> 02:14:15,520
want a Walmart. We all want these
things. So being good stewards to our

1539
02:14:12,560 --> 02:14:21,280
community is of the utmost importance.
and and I want the community to know

1540
02:14:18,719 --> 02:14:27,440
there was never an opportunity to say
yes or no. But what the power we have

1541
02:14:24,480 --> 02:14:32,639
here as a a council is to make sure and
ensure that our ordinances, resolutions,

1542
02:14:30,400 --> 02:14:37,679
and everything else gets done
appropriately right the first time for

1543
02:14:35,760 --> 02:14:42,159
that. If there's a bit another company
that comes besides cyber security and

1544
02:14:40,000 --> 02:14:49,760
anybody else, this community is ready
for that. I mentioned earlier that the

1545
02:14:45,040 --> 02:14:55,040
airport is almost ready. We may get
the free trade zone. We may not, but we

1546
02:14:52,480 --> 02:15:00,639
will be ready for that next big company
and the next big state uh step. It's

1547
02:14:58,480 --> 02:15:07,280
it's just which is the right one to move
forward. I'm not sure that this is it,

1548
02:15:03,520 --> 02:15:11,840
but I know that Cula is that close to
crossing over to getting the HB, to

1549
02:15:10,159 --> 02:15:18,320
getting the Walmart, to getting the
medical center. Which is the right deal?

1550
02:15:14,560 --> 02:15:24,239
I don't know. Help me, help you. And I'm
listening to you. I hear you. And we

1551
02:15:22,159 --> 02:15:29,360
will continue to listen to you and hear
you. And that's what I ask of you. That

1552
02:15:27,119 --> 02:15:35,920
you protect my community as best you
can. and and that we work together to

1553
02:15:32,239 --> 02:15:40,560
make the right deal for this community.
>> So, Madame Mayor, uh I would like to

1554
02:15:38,079 --> 02:15:45,360
tell you that if we are a member of your
community, we will protect it.

1555
02:15:44,000 --> 02:15:50,560
» I have a question and it's going to be a
followup with you're saying because we

1556
02:15:47,840 --> 02:15:54,960
it's a trust it's a trust issue. I want
to know when did you all start talking

1557
02:15:52,400 --> 02:15:59,599
to our people and with who to started
this and none of us here knew about it.

1558
02:15:58,079 --> 02:16:05,679
When was it started? Then all of a
sudden in June, I find out, we all find

1559
02:16:03,280 --> 02:16:09,679
out. I don't know if they knew. But my
question is, who did you start talking

1560
02:16:07,199 --> 02:16:15,119
to with with them not telling us about
this? Because that's the hard part for

1561
02:16:12,000 --> 02:16:19,040
us. How can we trust y'all? Because
again, I heard two years, three years

1562
02:16:17,280 --> 02:16:21,840
that you guys have been working on this.
And with who?

1563
02:16:21,119 --> 02:16:22,880
Them
>> certain

1564
02:16:22,239 --> 02:16:26,560
» county.
>> Yeah. Certainly not two years. I think

1565
02:16:24,719 --> 02:16:32,479
our first conversation was with the
County Economic Development Corporation.

1566
02:16:29,599 --> 02:16:36,080
Um I do not know Avette's last name, but
her first name is Avette. Uh and I think

1567
02:16:34,559 --> 02:16:40,639
she represents both the city and the
county. And so I had a phone call with

1568
02:16:37,439 --> 02:16:47,840
her I believe um in Mayor June of this
year. That is our first interaction with

1569
02:16:43,760 --> 02:16:52,639
anyone from Lasal County or Cula, Texas.
>> So the question is this and and I know

1570
02:16:49,679 --> 02:16:57,439
exactly where I believe uh Councilman
Janes is coming. We know that Cypher

1571
02:16:54,800 --> 02:17:01,359
Security bought land across the highway
by Coacina Ranch Road and you bought

1572
02:16:59,359 --> 02:17:06,719
that. It was talks in 23 and I believe
you bought it in 24. So we know that was

1573
02:17:04,639 --> 02:17:10,960
there at that time. Were you already
thinking about that or was that a

1574
02:17:09,359 --> 02:17:13,920
different project? Because you guys do a
lot of things.

1575
02:17:12,479 --> 02:17:18,319
» So I'll have to get back with you an
exact answer, but I I believe we

1576
02:17:15,760 --> 02:17:26,319
purchased this project from a developer
named Juvo. Is that correct? So, Juvo

1577
02:17:21,840 --> 02:17:31,840
may have purchased land in 2024. Um,
we purchased this project from them. And

1578
02:17:29,280 --> 02:17:35,519
so, I can get you the date that we we
purchased it, but we would have

1579
02:17:33,040 --> 02:17:40,479
purchased the LLC, the controlling
interest in the LLC that owned the land

1580
02:17:37,439 --> 02:17:44,559
and the interconnection with A. Uh, I do
not know the date that we purchased it.

1581
02:17:42,319 --> 02:17:51,840
I can commit to find that for you guys.
But our first conversation with anybody

1582
02:17:46,399 --> 02:17:54,880
from Lasal County or Cula was um this at
this spring at the earliest. It might

1583
02:17:53,599 --> 02:17:58,240
have been this summer.
>> And you have to understand,

1584
02:17:56,000 --> 02:18:02,800
» so my recollection is is that at the
beginning of July, we heard had our

1585
02:18:00,000 --> 02:18:06,080
first team meeting. Um and that was the
first time we actually met Cipher

1586
02:18:04,479 --> 02:18:10,000
Digital, which I was with Evette and I
was with the county judge at that time

1587
02:18:07,439 --> 02:18:13,840
we had that meeting. uh July 10th and
July 22nd my weekly council report I

1588
02:18:12,319 --> 02:18:18,399
outlined everything that happened and
what we did and what we talked about and

1589
02:18:16,479 --> 02:18:22,719
that we um you know and all the
conversation that we had and the

1590
02:18:19,679 --> 02:18:26,639
details. So it was in it was already
information was already given to the

1591
02:18:24,080 --> 02:18:30,479
council at that point. Um the day we had
that meeting, I actually told the mayor

1592
02:18:28,719 --> 02:18:34,080
in the city secretary's office that it
occurred and that you know what we

1593
02:18:32,240 --> 02:18:38,559
talked about.
>> David and some of that information,

1594
02:18:36,160 --> 02:18:43,519
you're absolutely right, but but but the
question and I don't know maybe yeah,

1595
02:18:41,359 --> 02:18:49,040
Mark Robertson and I know I was asked
about this uh from a couple of the

1596
02:18:46,000 --> 02:18:55,519
locals was the paper said that we had a
memo stating all of this and it was in

1597
02:18:52,000 --> 02:18:59,519
the paper. So that that's why there's so
many questions, you know, as to as to

1598
02:18:57,519 --> 02:19:03,200
where it is. And and Mark was the one
that posted that. I've never gotten any

1599
02:19:01,760 --> 02:19:05,840
memo on it. Nobody did.
>> Yes. Actually,

1600
02:19:04,080 --> 02:19:09,840
» it's your interior stuff
>> in your in your packet here. The

1601
02:19:08,319 --> 02:19:10,719
correspondence is actually in your
packet,

1602
02:19:10,399 --> 02:19:14,639
» right?
>> That went to each council member. The

1603
02:19:12,960 --> 02:19:19,399
time stamp is on that. It's right here
in your packet.

1604
02:19:16,399 --> 02:19:19,399
» Good.

1605
02:19:20,399 --> 02:19:27,679
» Mr. Wright, I want to clarify something.
I know that I had mentioned to you um I

1606
02:19:25,679 --> 02:19:34,000
had mentioned that I just received this
today. What id received was I I got your

1607
02:19:31,200 --> 02:19:39,120
packet. I just did not receive the one
that you had got the uh engineering firm

1608
02:19:37,200 --> 02:19:44,080
the goto
uh firm. That's that's what I had

1609
02:19:41,599 --> 02:19:48,319
received that particular day. I got the
packet but that in addition to that

1610
02:19:46,479 --> 02:19:54,720
packet I did not receive until that
particular day.

1611
02:19:51,680 --> 02:19:59,040
Let me uh say something. Uh I'm not
against anybody, but I received it

1612
02:19:57,439 --> 02:20:04,880
myself.
And for you all's information, it has to

1613
02:20:01,920 --> 02:20:09,359
be put out through media. So if you go
to the city hall, it's it's it's put out

1614
02:20:07,439 --> 02:20:10,800
there in the front of the city hall. Am
I right?

1615
02:20:10,399 --> 02:20:12,960
» What?
>> The the agenda?

1616
02:20:12,319 --> 02:20:18,399
» Yeah.
>> It's put in the in the city hall

1617
02:20:16,000 --> 02:20:25,359
» and it's also in the website of the city
of Kulin. So everybody should have been

1618
02:20:20,880 --> 02:20:28,800
aware regardless if we got it or didn't.
You know, I got it myself. I don't know

1619
02:20:27,280 --> 02:20:32,880
if if y'all got it
>> there,

1620
02:20:30,000 --> 02:20:38,640
» you know, but it's advertised
through through social media and through

1621
02:20:35,840 --> 02:20:44,160
the city government right in front of
the city hall and it has to be posted

1622
02:20:42,000 --> 02:20:47,720
for
three business days.

1623
02:20:51,439 --> 02:20:58,240
That's what it's about. It's it's not
that's interior. That's our dirty

1624
02:20:56,319 --> 02:21:04,240
laundry, I guess. But we just want to
ensure that that absolutely we take

1625
02:21:02,240 --> 02:21:08,240
every single step because these are
decisions we're making for our kids, not

1626
02:21:06,800 --> 02:21:14,640
you know, more than anything for our
kids. And we want them to sustain a Cula

1627
02:21:11,120 --> 02:21:19,680
where we drank from the water hose. You
know, we might not do that today, but we

1628
02:21:16,560 --> 02:21:24,080
did. We ran around barefoot. Our we had
long lasting lives. And there's so many

1629
02:21:22,240 --> 02:21:30,160
things. And this community has been act
impacted tremendously by the oil field

1630
02:21:27,280 --> 02:21:38,000
by the oil field, you know, contaminants
and and our water pressures and our and

1631
02:21:33,040 --> 02:21:45,359
and so the city I can only speak for the
city of Cula is we needing to make sure

1632
02:21:42,640 --> 02:21:50,640
that our regulations and everything and
there's that trust and so we would like

1633
02:21:48,160 --> 02:21:54,720
to have that trust but we also we have
to take care of our community

1634
02:21:53,200 --> 02:21:57,760
» completely understand and you know this
is why we're here today is we're not

1635
02:21:56,319 --> 02:22:01,439
asking for your trust we're asking for
the opportunity to earn your trust

1636
02:21:59,120 --> 02:22:04,399
through our actions over time um one of
the things you know coming out here this

1637
02:22:03,120 --> 02:22:07,520
is something that we've learned as a
company of trying to engage as early on

1638
02:22:06,319 --> 02:22:11,520
as possible with the first
communications happening in June July

1639
02:22:09,840 --> 02:22:15,120
you know it's now September and we're
here doing an open forum we're going to

1640
02:22:12,960 --> 02:22:17,760
do a town hall and another town hall and
answer any of your questions we'll have

1641
02:22:16,479 --> 02:22:20,880
people sitting around where you come up
and talk to us one-on-one and answer

1642
02:22:19,600 --> 02:22:24,479
anything that we can because we want to
be an active member of the community and

1643
02:22:22,479 --> 02:22:28,720
supporting growth in the community and
answering any questions that y'all have.

1644
02:22:26,800 --> 02:22:34,000
» I I have one more question for you, Mr.
Lee. I want to talk about insurance. Uh

1645
02:22:32,160 --> 02:22:39,840
fire rating for Las County and the city
of Coula is at a two. And I'm very very

1646
02:22:36,800 --> 02:22:44,399
curious as to your burden that you would
have to pay in the county versus the

1647
02:22:41,439 --> 02:22:49,439
city on taxes. I mean, I'm sorry, on a
on insurance.

1648
02:22:46,479 --> 02:22:54,640
So I there are places where we're in an
ETJ and the city asked to annex us

1649
02:22:52,640 --> 02:22:59,600
because there is some savings being
inside city limits related to uh

1650
02:22:56,960 --> 02:23:04,160
insurance. Um our insurance company is
Marsh was the one of the largest

1651
02:23:01,439 --> 02:23:08,000
insurance companies in the world and we
have not found a material difference in

1652
02:23:06,240 --> 02:23:12,000
what we have to pay in insurance in the
city versus in the county.

1653
02:23:09,600 --> 02:23:14,960
» Uh it's it's it is different but it's
not um significant.

1654
02:23:13,200 --> 02:23:18,560
» Yeah. could what I was what I was
looking at myself personally is is

1655
02:23:16,720 --> 02:23:22,319
availability to water for fire
firefighting. You know, insurance

1656
02:23:20,720 --> 02:23:28,399
generally would be lower for that if you
were with closer to the source of water.

1657
02:23:25,120 --> 02:23:33,920
We we do have uh as Lee mentioned a very
early it's a VZDA system, very early

1658
02:23:30,319 --> 02:23:38,399
fire detection system um that that
handles the vast majority of issues

1659
02:23:35,840 --> 02:23:44,160
related to fire. Um, if we were in the
city, uh, then of course that would be a

1660
02:23:42,479 --> 02:23:48,000
savings to us. We would certainly be
willing to donate to the volunteer fire

1661
02:23:46,000 --> 02:23:52,800
department as Lee said. Uh, if we were
in the county, sometimes we do fill a

1662
02:23:50,399 --> 02:23:56,160
water tank. Uh, but it's a one-time
fill. So, we'd be transparent about the

1663
02:23:54,960 --> 02:24:00,399
number of gallons that would go into
that. It could be brackish water

1664
02:23:57,520 --> 02:24:04,640
probably or or just, you know,
firefighting water. Um that would be a

1665
02:24:02,319 --> 02:24:10,160
onetime fill in a water tank to to use
to fight fires if we were in the county.

1666
02:24:07,040 --> 02:24:13,200
» And yeah, same comment or same thing,
little different subject. You know,

1667
02:24:11,520 --> 02:24:16,960
currently the oil fields refracking all
the wells and they're they're selling

1668
02:24:15,520 --> 02:24:20,479
the water out from under us and there's
nothing we can do about it. And each one

1669
02:24:18,960 --> 02:24:25,840
of those refracks, each well that's
drilled is approximately 21 million

1670
02:24:22,080 --> 02:24:29,040
gallons. Um very very important and
nobody can do anything about it. It's

1671
02:24:27,439 --> 02:24:32,760
happening all the way around us and
nobody says anything.

1672
02:24:40,640 --> 02:24:48,600
that they have the land
and they can build regarding

1673
02:24:50,640 --> 02:24:58,200
about
it or not.

1674
02:24:54,800 --> 02:24:58,200
» That's correct.

1675
02:24:58,960 --> 02:25:08,520
» They're going in with a
Whether you know

1676
02:25:04,960 --> 02:25:08,520
it, whether

1677
02:25:12,319 --> 02:25:15,319
that's

1678
02:25:16,240 --> 02:25:23,640
» so that Yeah, you get it.
Sure.

1679
02:25:25,760 --> 02:25:31,200
» So the city the city's power and
authority is to enact ordinance to keep

1680
02:25:29,359 --> 02:25:35,600
them within regulation of what the city
wants. So as we explained, you know, if

1681
02:25:34,160 --> 02:25:40,240
the noise is too loud or something like
that, we we create an ordinance and say

1682
02:25:38,479 --> 02:25:44,399
we you guys need to mitigate it, but the
ordinance would be across the board to,

1683
02:25:42,240 --> 02:25:48,880
you know, every every business, every
everybody in the community. Um if

1684
02:25:46,960 --> 02:25:53,359
there's a pollution issue, we create an
ordinance.

1685
02:25:51,600 --> 02:25:57,760
Uh yes, ma'am. That's why we are trying
to create a team currently to be of of

1686
02:25:55,600 --> 02:26:02,399
professionals that know how to do these
because myself, all of us at this table

1687
02:26:00,880 --> 02:26:06,319
and everybody in this room do not know
the implications of what's happening and

1688
02:26:04,720 --> 02:26:10,359
we want to have experts on board to be
able to tell us and

1689
02:26:14,319 --> 02:26:20,880
Yeah.
I

1690
02:26:18,800 --> 02:26:24,319
Yes. And I I think the best thing is is
that they're willing to take us to a

1691
02:26:22,560 --> 02:26:27,600
site so we can visualize and see for
ourselves.

1692
02:26:25,359 --> 02:26:31,040
» Ma'am,
no, we can do it.

1693
02:26:29,439 --> 02:26:34,040
» Men.
Men.

1694
02:26:40,960 --> 02:26:48,800
» Right. Ma'am, that's why
>> excuse me. Um, that's why I asked them

1695
02:26:47,520 --> 02:26:53,840
that I want everything in black and
white that they will not touch our

1696
02:26:50,080 --> 02:26:59,840
water, our power and and so on. You
know, there's a lot that has to be

1697
02:26:56,399 --> 02:27:04,560
discussed. We do want to keep the com
community safe and we are y'all's voice

1698
02:27:02,240 --> 02:27:11,200
and we are going to do our best to to
pro protect y'all. And I mean

1699
02:27:08,479 --> 02:27:16,560
every
every everything we we need we we needed

1700
02:27:14,399 --> 02:27:17,680
a black and white
>> everything

1701
02:27:17,120 --> 02:27:22,160
» person
>> but within the city limits we can we we

1702
02:27:20,080 --> 02:27:25,280
have some regulation uh in the county
the whole field and the with the winter

1703
02:27:23,920 --> 02:27:29,000
garden district there's not very much
regulation on them.

1704
02:27:41,840 --> 02:27:44,840
So

1705
02:27:46,160 --> 02:27:52,240
yes, actually actually we we have
experts already that already have this

1706
02:27:50,640 --> 02:27:57,760
information and that are going to be
doing presentation tonight. Um myself,

1707
02:27:55,359 --> 02:28:03,120
I've only I've only done exactly what
everyone here has as I looked online and

1708
02:28:00,000 --> 02:28:07,359
seen different things the same. Um there
is there's no vote on this agenda to

1709
02:28:05,200 --> 02:28:12,319
give them a tax abatement tonight. Th
this is a longunning process. You know,

1710
02:28:09,920 --> 02:28:15,600
we're not here to give a tax abatement.
We're here to give a the presentation is

1711
02:28:14,399 --> 02:28:19,120
this is what they're this is what
they're offering to the city. This is

1712
02:28:16,960 --> 02:28:23,200
what the possibility is and that's
really it at this point. uh moving

1713
02:28:21,040 --> 02:28:27,280
forward from here today, now that
they've given the presentation, now the

1714
02:28:25,439 --> 02:28:31,120
information is going to start rolling to
the council, to the community, to

1715
02:28:28,880 --> 02:28:37,600
everybody. Right now, we don't we don't
have that information. We're building

1716
02:28:32,720 --> 02:28:42,720
that team to get that information. We're
Winkler or actually our longest running

1717
02:28:39,680 --> 02:28:45,520
facility is in Odessa, Texas. Um it's
probably not the best for you guys to go

1718
02:28:44,160 --> 02:28:50,240
visit because it's right next to a power
plant, multiple power plants. There's no

1719
02:28:47,520 --> 02:28:53,920
communities nearby. Um, we show you
satellite images of it. It just probably

1720
02:28:51,760 --> 02:28:58,240
wouldn't be a good comparison because it
is

1721
02:28:56,720 --> 02:29:01,600
Mitchell County and Winkler County,
Texas are are those. Mitchell County,

1722
02:29:00,240 --> 02:29:05,120
Texas is the one we've probably
mentioned a lot tonight. That's the one

1723
02:29:03,520 --> 02:29:09,760
we'd recommend. There's also Winkler
County, Texas.

1724
02:29:08,160 --> 02:29:14,960
I believe we're at about nine months
there.

1725
02:29:11,520 --> 02:29:20,880
Oh, a little bit over a year. I it it's
being retrofitted but it is um it's been

1726
02:29:18,000 --> 02:29:26,319
up for about a year. So what I would
offer is we would welcome the

1727
02:29:23,600 --> 02:29:30,399
opportunity. I think the the thing that
you know we could say hey there's no

1728
02:29:27,600 --> 02:29:33,200
evidence that data centers cause health
uh issues and that's something that

1729
02:29:32,000 --> 02:29:39,439
would be really hard for you guys to
believe coming from us. So we would be

1730
02:29:35,920 --> 02:29:45,680
happy to pay for a panel of doctors to
come to do an assessment to make a

1731
02:29:43,280 --> 02:29:52,640
presentation to to do some some medical
research. um we'd be very confident in

1732
02:29:48,319 --> 02:29:58,240
the outcome um that there is no evidence
that that even low frequency um

1733
02:29:55,840 --> 02:30:08,000
emissions there's everything creates low
frequency uh sound waves um any your car

1734
02:30:02,640 --> 02:30:12,080
engine you know I35 everything um and so
again don't take our word for it that is

1735
02:30:10,319 --> 02:30:16,800
something that we would commit to if if
it is of interest to you guys to have

1736
02:30:15,040 --> 02:30:21,280
two or three doctors come and make a
presentation to the town hall. Doctors

1737
02:30:19,439 --> 02:30:25,359
who are not on our payroll, not on
y'all's payroll, just, you know, medical

1738
02:30:24,000 --> 02:30:29,359
professionals who have the hypocratic
oath who who can do some research and

1739
02:30:27,200 --> 02:30:33,520
and make a presentation about potential
health risk because I can I can talk

1740
02:30:31,920 --> 02:30:38,479
about how we are going to get shut off
by URK if there's ever a grid emergency.

1741
02:30:35,439 --> 02:30:43,920
That's that's factual. Um I am out of my
depth trying to talk about medical

1742
02:30:41,359 --> 02:30:51,560
things. So I I think having someone like
that come in would be a good idea.

1743
02:30:47,439 --> 02:30:51,560
So with that

1744
02:30:58,720 --> 02:31:01,720
other

1745
02:31:11,840 --> 02:31:17,200
» and and that's exactly what we're asking
is are you responsible responsible

1746
02:31:15,600 --> 02:31:21,280
company or are you unresponsible
company? And that's that's absolutely

1747
02:31:19,120 --> 02:31:25,359
what we need to do. We do need to start
moving. I'm sorry.

1748
02:31:23,359 --> 02:31:31,040
» So, this is a done deal.
>> No, there's no done deal.

1749
02:31:27,359 --> 02:31:35,120
» So, then that's what they're saying the
contract or an agreement with them.

1750
02:31:32,880 --> 02:31:39,840
» So, the done deal is when everybody
agrees when they say, "Look, we'd rather

1751
02:31:37,920 --> 02:31:44,960
be in the city than be in the county."
that and and even with all the

1752
02:31:42,000 --> 02:31:49,760
restrictions we give them. Remember,
there's still a lot of work to be done.

1753
02:31:47,840 --> 02:31:54,399
» So there's no rush. So there's no rush.
Like the last time whatever time we take

1754
02:31:52,479 --> 02:31:56,240
to do what we got to do is what we got
to do

1755
02:31:54,800 --> 02:31:58,800
» because I know with the beautiful big
bill, you need to have this really

1756
02:31:57,600 --> 02:32:01,600
quick. So
>> Well, I want to do that.

1757
02:32:00,000 --> 02:32:05,040
» And that's probably part of it. You
know, you know, you've got to look at

1758
02:32:03,040 --> 02:32:10,640
those federal credits. We know that. But
those are things that we have to work

1759
02:32:07,200 --> 02:32:15,359
through to be able to put them again he
told you to the test

1760
02:32:12,240 --> 02:32:19,200
» so that so that
they're going to decide whether they

1761
02:32:17,040 --> 02:32:23,479
build in the city or out outside the
city. I'm not going to do it.

1762
02:32:29,200 --> 02:32:32,200
» Yeah.

1763
02:32:32,319 --> 02:32:39,600
Affect your water bill.
>> It it it it should and it should what

1764
02:32:37,760 --> 02:32:43,280
how how can we guarantee that it's not
going to affect their water bill?

1765
02:32:41,680 --> 02:32:47,359
» It absolutely won't affect your water
bill if they're 100% if they're not

1766
02:32:45,840 --> 02:32:51,120
connected to our system. And even if
they were connected to our water system,

1767
02:32:49,680 --> 02:32:55,439
they would charge their rate and it
wouldn't affect yours.

1768
02:32:53,600 --> 02:33:00,520
If anything, the revenues would uh
actually make it so we wouldn't have to

1769
02:32:57,359 --> 02:33:00,520
do increases.

1770
02:33:08,399 --> 02:33:12,359
» What about her value?

1771
02:33:12,960 --> 02:33:18,319
Because she across the street from the
data.

1772
02:33:16,479 --> 02:33:27,200
Yeah, I don't think I don't even think
it would affect it. I I I don't see how.

1773
02:33:23,280 --> 02:33:29,359
If I had the money, I probably would.
>> That's not funny.

1774
02:33:28,560 --> 02:33:33,120
» Well,
>> that's not funny. Okay. Okay.

1775
02:33:31,200 --> 02:33:36,960
» So, here here's the deal. There's a lot
more questions. There's still a lot of

1776
02:33:34,560 --> 02:33:41,200
fear. I see it. I see it in you. There
is going to be a town hall meeting.

1777
02:33:39,200 --> 02:33:46,240
Gather some more of those questions. Get
yourself a group.

1778
02:33:43,359 --> 02:33:51,120
outline those questions and let them set
up the town hall meetings and and we

1779
02:33:49,439 --> 02:33:55,920
continue to ask the questions. That's
what that's what they're here for. Um

1780
02:33:55,200 --> 02:34:00,319
» yeah,
>> we have a lot of items on the agenda

1781
02:33:57,920 --> 02:34:04,319
tonight and some more of these deal with
this. Uh Jeff Snowden is on standby,

1782
02:34:03,760 --> 02:34:07,359
right?
>> And I think you're going to hear some

1783
02:34:05,760 --> 02:34:11,600
interesting things from him. So I
recommend that you stay and you listen

1784
02:34:09,359 --> 02:34:19,040
to them when they talk about the tax
abatement and the process and

1785
02:34:13,840 --> 02:34:22,080
compression of of uh tax rates. Uh so
there's there's good stuff to come. So

1786
02:34:20,800 --> 02:34:25,680
don't lose.
>> So with that being said, we do want you

1787
02:34:23,920 --> 02:34:31,520
to stay for that. I'm going to move
forward. Please continue writing down

1788
02:34:28,560 --> 02:34:34,880
your questions. Please get ready for
that town hall meeting and ask them

1789
02:34:33,840 --> 02:34:36,880
questions. Sir, I'm going to lend you
the mic and then we're going to move

1790
02:34:36,000 --> 02:34:41,040
forward.
Madame Mayor, I just want to say thank

1791
02:34:38,960 --> 02:34:44,479
you for hosting us community. Thank you
for giving us the opportunity. We will

1792
02:34:42,640 --> 02:34:48,880
take more opportunities to provide more
information. And again, I cannot stress

1793
02:34:46,800 --> 02:34:53,120
enough. We want to hire thirdparty
experts uh so that you don't have to

1794
02:34:50,960 --> 02:34:56,399
take our word for it. Um I'm driving
back to Dallas tonight, so I will

1795
02:34:54,720 --> 02:35:00,960
probably uh head out. I've got to take
my kids to school in the morning. So, I

1796
02:34:58,800 --> 02:35:07,200
hope it's not considered rude that I
depart, but I'm going to be pulling in

1797
02:35:02,640 --> 02:35:11,040
Dallas at probably 3:00 a.m. So, uh I
may I may take but I did leave my card

1798
02:35:09,359 --> 02:35:15,520
with several individuals who are here.
So, if you do need a phone number from

1799
02:35:12,479 --> 02:35:21,520
me, um Bill and Lee also have some
travel to San Antonio and Austin. So, um

1800
02:35:19,280 --> 02:35:25,120
is it would it be okay if we we
departed? I know that's probably

1801
02:35:23,680 --> 02:35:28,640
» No. Thank you very much for your
presentation.

1802
02:35:27,359 --> 02:35:33,680
All right, we're going to go ahead and
move on to uh item number eight, which

1803
02:35:32,080 --> 02:35:40,399
is to discuss, consider, and act on
approving resolution number 260827,

1804
02:35:37,280 --> 02:35:45,600
a resolution of the city of Cula, te uh
Texas electing to participate in a tax

1805
02:35:43,200 --> 02:35:49,760
abatement agreement with uh and
establishing guidelines and criteria

1806
02:35:47,760 --> 02:35:53,120
governing tax abatement for economic
development prospects in Cula. So,

1807
02:35:52,000 --> 02:35:57,680
you're still going to see some of that
same verbiage as our public uh public

1808
02:35:56,000 --> 02:36:00,399
hearing. Do we have a presentation,
please?

1809
02:35:57,920 --> 02:36:04,880
» I do have a presentation from Mr. Jeff.
Mayor, um he should be coming up right

1810
02:36:02,640 --> 02:36:08,880
now.
>> Yes. Good evening, Mayor, members of

1811
02:36:07,359 --> 02:36:12,399
council.
Can you hear me? Okay.

1812
02:36:10,800 --> 02:36:18,160
» Yes.
>> Good evening. The item before you is the

1813
02:36:15,359 --> 02:36:22,240
consideration to adopt the guidelines.
uh you've been approached to with an

1814
02:36:20,000 --> 02:36:28,800
abatement request, but under the current
statute under chapter 312, you cannot

1815
02:36:26,399 --> 02:36:32,960
extend an abatement unless you have
adopted guidelines and criteria, which

1816
02:36:30,640 --> 02:36:37,600
I've drafted for you. Uh you you must
have conducted a public hearing duly

1817
02:36:35,600 --> 02:36:42,080
posted in the newspaper record seven
days prior to that. We've done that. And

1818
02:36:39,680 --> 02:36:45,920
so what's what's before you for
consideration tonight is to adopt those

1819
02:36:44,080 --> 02:36:50,960
guidelines. Only after you have adopted
those can you then consider the

1820
02:36:48,240 --> 02:36:55,760
abatement request lawfully.
So this is a very preliminary step, a

1821
02:36:53,600 --> 02:36:59,280
necessary step, but you're you're you're
far away from giving anyone a tax

1822
02:36:57,760 --> 02:37:07,800
abatement. All you're doing right now is
giving the city a tool, the tool to

1823
02:37:02,880 --> 02:37:07,800
consider the request and work the deal.

1824
02:37:13,520 --> 02:37:20,479
So that's all we're doing is approving.
>> We're approving the documentation to be

1825
02:37:18,479 --> 02:37:23,040
able to even offer it back to David to
anybody.

1826
02:37:21,040 --> 02:37:26,560
» So I I looked at this documentation a
little bit. I don't know if anybody else

1827
02:37:24,240 --> 02:37:31,200
had a time to review it. Uh there's a
couple of topics of uh promoting quality

1828
02:37:29,359 --> 02:37:35,600
development promoting quality to
betterment that some of this verbiage.

1829
02:37:33,280 --> 02:37:38,800
Steve, did you did you produce this
document?

1830
02:37:36,000 --> 02:37:43,040
» I looked at it last week. Uh this is
basically

1831
02:37:39,200 --> 02:37:47,280
» I did general guidelines. Uh this has
been used in other cities. I'm not

1832
02:37:45,359 --> 02:37:54,240
trying to reinvent the wheel, but this
is Jeff's uh wheelhouse. And um I I

1833
02:37:51,760 --> 02:37:58,479
think that the meeting tonight thus far
has been very productive. And I think

1834
02:37:56,560 --> 02:38:05,200
that the people that came shed some
light on some some some things that uh

1835
02:38:01,520 --> 02:38:08,800
were possibly uh not true and also
promised to give more information,

1836
02:38:07,120 --> 02:38:14,800
including the tour of where they're at.
I I I have talked to Jeff this week and

1837
02:38:12,479 --> 02:38:20,640
uh we talked about uh his recent
experience in Jacksonboro, Texas and uh

1838
02:38:18,399 --> 02:38:24,720
I don't know if he can fill us in a
little bit on some of the other deals

1839
02:38:22,240 --> 02:38:30,080
he's made once we do this, but I think
there's another agenda item he's he's

1840
02:38:26,880 --> 02:38:36,000
involved with, right? Okay.
>> So So this one is the guidance and

1841
02:38:32,640 --> 02:38:41,359
criteria for granting tax abatement. Um,
I I would like you to look at it a

1842
02:38:38,399 --> 02:38:46,240
little further and and even maybe afford
us opportunity to do a workshop or

1843
02:38:43,359 --> 02:38:51,439
something so that we can debate this and
and and then bring a a good product if

1844
02:38:48,720 --> 02:38:57,680
we we require any changes.
>> This is policy. You can always amend it.

1845
02:38:54,319 --> 02:39:03,280
Uh this is just a placekeeper for now.
And so this is these are general

1846
02:38:59,439 --> 02:39:09,920
guidelines. I did I did read it and uh I
I don't have any any issues with it.

1847
02:39:06,960 --> 02:39:19,479
» The only thing that I have is Jeff has
in his the guidelines it says um

1848
02:39:15,680 --> 02:39:19,479
uh where is it?

1849
02:39:19,680 --> 02:39:28,720
It's it's individual our
it's it's only per per company that we

1850
02:39:26,080 --> 02:39:33,680
can only uh you know that there is no
commitment to have to do all abatements

1851
02:39:31,439 --> 02:39:40,800
right but our resolution doesn't have
that I want this resolution to mirror

1852
02:39:37,920 --> 02:39:44,800
more or less what Jeff put on his do you
understand what I'm saying

1853
02:39:42,720 --> 02:39:46,720
» this is the this is our resolution is it
not

1854
02:39:45,200 --> 02:39:50,720
» I hear not
>> okay

1855
02:39:48,560 --> 02:39:53,600
» that This is Jeff resolution that's in
our book.

1856
02:39:52,240 --> 02:39:55,840
» So it doesn't have the mirror what he
said.

1857
02:39:54,720 --> 02:39:59,120
» What? Who said he?
>> No, Jeff.

1858
02:39:56,880 --> 02:40:02,240
» This is This is what Jeff.
>> Okay.

1859
02:39:59,600 --> 02:40:07,120
» It's right here. So I I I Jeff would
like to see that abatement period not to

1860
02:40:04,560 --> 02:40:11,520
exceed 10 years. I think that's too
long. I'd like to be five. Yeah, that's

1861
02:40:09,600 --> 02:40:15,680
by law. 10 years. We have to go 10
years, but it doesn't have to go two

1862
02:40:12,880 --> 02:40:20,720
way.
>> I don't want to make it longer. I want

1863
02:40:17,359 --> 02:40:26,240
to make it shorter. the mayor the uh the
statute limits an abatement to 10 years

1864
02:40:24,080 --> 02:40:29,439
but you can approve an abatement
agreement can't do any abatement

1865
02:40:28,080 --> 02:40:33,359
agreement till you adopt the guidelines
but once you do you could approve an

1866
02:40:31,680 --> 02:40:40,040
abatement agreement that only extended a
six-month abatement but the furthest you

1867
02:40:36,000 --> 02:40:40,040
could go out is 10 years

1868
02:40:41,280 --> 02:40:48,160
» one thing I did want to bring out and I
think it's just a little derivative but

1869
02:40:46,399 --> 02:40:53,439
I think it's important
the Los Palmus development that

1870
02:40:50,240 --> 02:41:00,399
everybody in here knows about
the Los Palmus development in Cula.

1871
02:40:57,680 --> 02:41:06,720
All of that was funded by a tax
increment refinancing. So all of it

1872
02:41:03,439 --> 02:41:10,960
about $20 million that was paid back to
the developer

1873
02:41:08,560 --> 02:41:15,840
by the increase in the taxable value of
that property from when they started it

1874
02:41:14,080 --> 02:41:21,359
to when they finished it. And that
worked successfully. We we now all enjoy

1875
02:41:19,520 --> 02:41:27,280
all those hotels. The millions of
dollars Cula gets in. Hotel occupancy

1876
02:41:24,560 --> 02:41:34,880
taxes would not have occurred but for
the fact that that zone was created by

1877
02:41:30,800 --> 02:41:41,600
John Ke in 2007 or eight many many years
ago. So this is not something new for

1878
02:41:38,319 --> 02:41:47,200
the city of Cula. The city has invested
in economic development before. And I

1879
02:41:45,040 --> 02:41:52,720
guess to answer the question, there are
no done deals that come to the council,

1880
02:41:50,720 --> 02:41:56,800
but David made it very clear, we live in
the state of Texas. Many of you own

1881
02:41:55,280 --> 02:42:01,120
property.
You you have the right to use your

1882
02:41:58,560 --> 02:42:06,000
property in any lawful manner that you
choose to use it subject to re to

1883
02:42:04,000 --> 02:42:10,000
government regulations.
And I think that there's a misconception

1884
02:42:07,920 --> 02:42:15,600
that somehow the city can stop these
guys. We can't. There is no law against

1885
02:42:13,359 --> 02:42:20,560
building a data center. There isn't.
There aren't any. Governor Abbott has

1886
02:42:18,160 --> 02:42:24,880
talked extensively about it. He wants to
reign in some of this stuff. And like

1887
02:42:22,960 --> 02:42:29,600
anything new, there's usually problems
at first and then you learn how to deal

1888
02:42:26,800 --> 02:42:34,560
with it and then it then it becomes a
non-issue. I'm not saying that's what's

1889
02:42:31,200 --> 02:42:39,200
going to happen here.
15 years ago when we first started

1890
02:42:36,800 --> 02:42:43,680
developing the Eagleford Shale,
hydraulic fracturing was going to ruin

1891
02:42:41,120 --> 02:42:49,120
the world. We we were we were all going
to die from earthquakes, from climate

1892
02:42:46,240 --> 02:42:54,319
change, from all of these things.
None of that has happened. And none of

1893
02:42:51,920 --> 02:43:00,560
that is going to happen from one
landowner coming in who doesn't have to

1894
02:42:57,439 --> 02:43:04,319
come in here and tell you anything.
They they came here because they wanted

1895
02:43:02,560 --> 02:43:07,439
to come in. They understand. and they
got to they've got to talk to the local

1896
02:43:06,240 --> 02:43:12,880
people. They're they're good
businessmen, but they have a right to

1897
02:43:09,840 --> 02:43:18,000
use their property. Just like anybody
here who owns a piece of land has a

1898
02:43:15,359 --> 02:43:22,240
right to use their property.
And as as far as building in the city,

1899
02:43:20,560 --> 02:43:27,600
there are obvious reasons why you would
want to do it. Police and fire, you've

1900
02:43:25,600 --> 02:43:31,520
got municipal regulations, you got
zonal, you don't have to worry about

1901
02:43:29,680 --> 02:43:35,280
somebody putting a grilling rig behind
you or something. all of those things.

1902
02:43:33,280 --> 02:43:39,760
There's reasons they're doing it. Now, I
believe he was a little koi about what

1903
02:43:37,120 --> 02:43:43,120
he said about insurance
because anybody in here who owns

1904
02:43:41,520 --> 02:43:47,600
property in the county who's tried to
insure anything out there that doesn't

1905
02:43:45,359 --> 02:43:50,960
have fire protection, you know darn well
you either don't get it or you're going

1906
02:43:49,120 --> 02:43:53,040
to pay about 10 times what you'd pay in
the city to do it.

1907
02:43:51,920 --> 02:43:59,840
» Correct.
>> So, I I think he you know I don't know

1908
02:43:56,720 --> 02:44:06,319
about the answer I got, you know, but
but Mr. Snowden known him for years to

1909
02:44:03,279 --> 02:44:11,200
live with him. We we brought him in
because he knows this stuff. He's done

1910
02:44:09,040 --> 02:44:15,680
these all over the state of Texas that
you're not going to stop these guys.

1911
02:44:12,800 --> 02:44:20,720
You're you're not you know the best
thing that you can do is to make an

1912
02:44:18,319 --> 02:44:27,200
intelligent agreement that you can
strictly monitor and that you put in

1913
02:44:23,760 --> 02:44:33,200
place critical safeguards so that
whatever problems can be avoided are

1914
02:44:30,479 --> 02:44:37,600
avoided. and it doesn't come back. Well,
why didn't you didn't think of this? Why

1915
02:44:34,960 --> 02:44:40,960
didn't you think of that? All of these
things are important. And as Jeff has

1916
02:44:39,359 --> 02:44:45,680
said tonight, these are basic
guidelines. We have to have them. For

1917
02:44:43,840 --> 02:44:49,359
example, if you wanted to come into the
city and build the racetrack, but we're

1918
02:44:47,359 --> 02:44:54,960
not going to give you an economic
incentive to do that, right? That there

1919
02:44:52,479 --> 02:44:59,600
there are reasons why you favor some
things and don't favor other things. So

1920
02:44:57,040 --> 02:45:04,800
the city can I don't want to use that
word but it can choose between what it

1921
02:45:02,000 --> 02:45:10,319
chooses to invest its money in or not.
At the end of the day when the council

1922
02:45:06,560 --> 02:45:16,640
decides it will be yes or no. That's it.
Three votes is what's required of member

1923
02:45:13,760 --> 02:45:23,200
council to approve.
And and I think

1924
02:45:19,520 --> 02:45:27,439
I I I feel like myself that I I saw some
of the faces that were in here tonight

1925
02:45:25,760 --> 02:45:34,080
and I think that some people left
probably feeling better about what they

1926
02:45:30,479 --> 02:45:37,359
heard and again you can't 100% believe
anything anybody tells you. Right.

1927
02:45:35,840 --> 02:45:40,240
» You can't speak for that for them like
that.

1928
02:45:38,240 --> 02:45:44,080
» Right. Right. So,
>> so

1929
02:45:42,080 --> 02:45:49,200
at least they're willing to talk and
they and and I think you know I'm very

1930
02:45:46,960 --> 02:45:56,200
confident that Mr. Snow knows what he's
doing otherwise he wouldn't be doing

1931
02:45:52,160 --> 02:45:56,200
this. Thank you.

1932
02:45:56,960 --> 02:46:01,319
» Go ahead and go ahead and

1933
02:46:25,439 --> 02:46:29,080
We're not going to get any

1934
02:46:37,920 --> 02:46:44,960
and that's what I keep saying here. We
have to be responsible counsel and make

1935
02:46:41,760 --> 02:46:49,520
the right decisions for for for you.
That's absolutely the most important

1936
02:46:46,800 --> 02:46:54,640
thing. Uh we we have to make all those
decisions appropriately. Did could we

1937
02:46:52,160 --> 02:46:58,800
stop them from buying the uh property?
No. If Sandra wanted to sell her

1938
02:46:56,720 --> 02:47:03,840
property, she could sell her property.
That could be an IIA database. She's in

1939
02:47:00,560 --> 02:47:08,479
the county. Okay. Why Why pick in the
city and why get restricted? There's

1940
02:47:05,840 --> 02:47:13,120
still any company. I don't care who
comes in wants to get the better deal,

1941
02:47:10,479 --> 02:47:18,479
right? So, either they go either you go
in the county or they go in the city.

1942
02:47:16,160 --> 02:47:23,840
And just remember that I want to make
this right decision for you, right?

1943
02:47:21,279 --> 02:47:28,560
Because during the oil industry and the
oil boom, what did Coutula get?

1944
02:47:26,720 --> 02:47:33,840
» What did Coutula, the city of Coutula
get? What did you get? Okay, but that's

1945
02:47:31,120 --> 02:47:40,080
the difference. Everybody got part of
it. Everybody got a part of it. Only one

1946
02:47:36,640 --> 02:47:44,960
person got sold or is leasing that land.
That's who's getting it only.

1947
02:47:42,399 --> 02:47:49,760
» So the oil, you can't compare the oil to
this data center. There's no way.

1948
02:47:47,120 --> 02:47:53,279
There's no way. There's no way. So
>> we have

1949
02:47:50,319 --> 02:47:58,319
» Yes. oil. Everybody, even the people in
Cthula got it. And they and they and

1950
02:47:56,000 --> 02:48:02,319
they and they affected our water and
they affected our contaminations and

1951
02:48:00,319 --> 02:48:05,399
they've affected they've affected a lot
of things.

1952
02:48:18,720 --> 02:48:25,920
Okay. So, we're we're going to move on
to the topics at hand. We know you still

1953
02:48:23,840 --> 02:48:30,319
have a lot of questions. We know we're
we're not satisfied with what we're

1954
02:48:27,760 --> 02:48:38,080
saying. We're we're trying to establish
and afford this council. give them the

1955
02:48:33,920 --> 02:48:43,120
right material to that so that we can
make them abide by regulation and

1956
02:48:40,720 --> 02:48:46,399
ordinance and and that's the only thing
we have

1957
02:48:44,399 --> 02:48:50,880
» and we we we have to do the right thing.
Hold on a second. We have to do the

1958
02:48:48,399 --> 02:48:53,840
right thing for you and this is part of
that.

1959
02:48:52,080 --> 02:48:59,200
» This is part of that. those ordinance
and resolutions that we have to do is

1960
02:48:56,160 --> 02:49:06,200
part of that so that we can give and
have those criteria and those

1961
02:49:01,840 --> 02:49:06,200
restrictions that you want in place.

1962
02:49:06,960 --> 02:49:16,000
» Right. We we only have one chance to get
this right. Right, Mr. Pñena? We only

1963
02:49:13,840 --> 02:49:20,560
have this one one chance. Right.
>> So, we all have to work as a team.

1964
02:49:18,800 --> 02:49:23,439
» We all have to work as a team. You know,
the console has to work with one

1965
02:49:22,160 --> 02:49:28,880
another.
We need unity so we can be strong, so we

1966
02:49:26,160 --> 02:49:34,560
can make the the right decisions
so we can help out each other, you know,

1967
02:49:30,960 --> 02:49:39,200
because this is this is um I mean, if we
don't get it right, our future, our pe

1968
02:49:37,760 --> 02:49:41,760
people are going to pay for it. And I
don't want that.

1969
02:49:40,479 --> 02:49:43,439
» One at a time.
>> Are you finished?

1970
02:49:42,720 --> 02:49:47,680
» Yes, I'm done.
>> We can be united, but we can agree to

1971
02:49:45,680 --> 02:49:50,240
disagree. You can go for it, but I
can't. And I don't have to. It's not

1972
02:49:49,120 --> 02:49:55,040
like I'm going to stop talking to you
because of that. We have the same thing.

1973
02:49:52,880 --> 02:49:59,760
But it's not about unity. It's what I
believe that is best for us. You believe

1974
02:49:57,439 --> 02:50:05,120
what's best for us. Whatever you think,
but I can't. Okay. So, that's all it is.

1975
02:50:03,040 --> 02:50:10,279
» Discussion back and forth. And and the
bottom line is it's what's best for our

1976
02:50:07,279 --> 02:50:10,279
community.

1977
02:50:13,359 --> 02:50:21,439
» County
where once once they decide to build

1978
02:50:17,439 --> 02:50:27,160
somewhere else, we're out completely.
Yeah.

1979
02:50:24,160 --> 02:50:27,160
» Yeah.

1980
02:50:27,760 --> 02:50:30,760
» Right.

1981
02:50:33,840 --> 02:50:39,359
» Okay.
>> Very little regulatory.

1982
02:50:37,520 --> 02:50:44,399
» I do have a question. You know, they
made they made reference to um bringing

1983
02:50:42,479 --> 02:50:49,040
stuff to the airport. It's still going
to be designated

1984
02:50:46,640 --> 02:50:53,439
to Cula. Yes. If they put it out in the
county. So we're still even if we decide

1985
02:50:51,600 --> 02:50:57,200
against all these abatements or this
that and the other anything that lands

1986
02:50:55,200 --> 02:51:00,800
at that airport still going to be
designated as Cula. So we still get

1987
02:50:59,680 --> 02:51:02,479
still get the monies off of that.
Correct.

1988
02:51:01,120 --> 02:51:06,000
» That's correct. The airport is within
the city limits. The entire property I

1989
02:51:04,319 --> 02:51:09,120
believe it's almost 100 acres.
>> But we only get half because half of it

1990
02:51:07,920 --> 02:51:11,520
goes to the county, right?
>> No. No.

1991
02:51:10,000 --> 02:51:16,000
» No. It's the city. Good.
>> City collects entire sales tax

1992
02:51:14,160 --> 02:51:19,920
throughout the county.
If if these guys developed in the

1993
02:51:17,840 --> 02:51:23,560
county, the county has almost nothing
that they can regulate.

1994
02:51:35,840 --> 02:51:44,760
» We can ask him to do that.
>> Yes.

1995
02:51:41,279 --> 02:51:44,760
» What's the question?

1996
02:51:48,479 --> 02:51:51,479
testing.

1997
02:51:57,040 --> 02:52:03,760
» So, so if there's any issues to the
residents that live around the data

1998
02:52:00,640 --> 02:52:08,080
center, is is there uh some kind of tax
abatement or incentive that the city

1999
02:52:06,080 --> 02:52:12,840
could give to them if there is some kind
of uh issue with their properties?

2000
02:52:13,200 --> 02:52:20,080
One of the things that I've incorporated
in similar abatement agreements is that

2001
02:52:17,120 --> 02:52:26,160
we do uh we require the developer to put
up vegetative screening and then also

2002
02:52:22,800 --> 02:52:32,560
not construct anything where there is a
residential unit within 500 ft of the

2003
02:52:29,040 --> 02:52:37,279
proposed construction. Um, that's how
I've addressed those concerns.

2004
02:52:34,000 --> 02:52:42,399
Historically, with respect to channeling
money to a specific homeowner to make

2005
02:52:40,640 --> 02:52:46,880
them whole due to a drop in their
property value, I have not done that.

2006
02:52:44,399 --> 02:52:50,080
And I'm going to defer to Mr. Pñena
whether that would even be something you

2007
02:52:48,479 --> 02:52:57,520
could do legally.
>> I I don't believe so. But but certainly

2008
02:52:53,279 --> 02:53:02,720
um the city if it if it has a a as I use
Jeff I'm quoting him the compressed tax

2009
02:53:00,319 --> 02:53:06,960
rates you know then then those are
applied equally because there's only one

2010
02:53:05,040 --> 02:53:12,240
municipal tax rate
>> and and I I I know we're going to get to

2011
02:53:09,120 --> 02:53:17,800
that later once we get through this
>> tax abatement and all of that in the

2012
02:53:14,080 --> 02:53:17,800
next presentation right

2013
02:53:18,720 --> 02:53:23,439
» Jeff you will talk about the tax
abatements in the next agenda item.

2014
02:53:22,560 --> 02:53:28,240
Correct.
>> I can certainly do that. Yeah. The what

2015
02:53:25,840 --> 02:53:33,200
is before the council currently is just
the adoption of the guidelines. If you

2016
02:53:30,560 --> 02:53:37,680
were to adopt those tonight, the statute
would still require for us to post

2017
02:53:34,960 --> 02:53:41,760
another 7-day in advance public hearing
for the reinvestment zone and then a

2018
02:53:39,760 --> 02:53:46,800
30-day posting prior to consideration of
a debatement agreement. So, you guys are

2019
02:53:44,160 --> 02:53:51,840
far far away from extending any
consideration to Cipher. This is just a

2020
02:53:49,840 --> 02:53:57,319
tool that will let you legally consider
their abatement request and respond to

2021
02:53:53,520 --> 02:53:57,319
it. That's all it is.

2022
02:53:59,040 --> 02:54:06,399
» All right. So, we are on item eight. And
if you've uh reviewed what in front of

2023
02:54:04,319 --> 02:54:13,520
you and what presented and want to
continue with this criteria of uh res uh

2024
02:54:09,279 --> 02:54:17,600
resolution number 26-027
resolution of the city of Cachula, Texas

2025
02:54:15,840 --> 02:54:21,600
electing to participate in a tax
abatement agreement. It's not

2026
02:54:19,200 --> 02:54:27,200
established any tax abatement yet. It's
just the facil the that what facilitates

2027
02:54:24,720 --> 02:54:30,880
that uh agreement and establishes
guidelines criteria governing tax

2028
02:54:28,880 --> 02:54:38,000
abatement for economic development
prospects in Cula, Texas. Uh I call that

2029
02:54:34,160 --> 02:54:46,439
to a vote. Do I have I'll ask you the
question. Do I have a motion to

2030
02:54:41,279 --> 02:54:46,439
vote on this item number eight?

2031
02:54:47,040 --> 02:54:55,200
» Mayor,
>> sir. Mayor, I apologize. May I amend the

2032
02:54:52,080 --> 02:55:00,160
your motion slightly? The the resolution
that I drafted does not say to

2033
02:54:58,000 --> 02:55:05,840
participate in a tax abatement
agreement. It says to participate in tax

2034
02:55:03,200 --> 02:55:12,080
abatement agreements plural. But this
isn't this is not tied to any specific

2035
02:55:08,560 --> 02:55:17,439
request or deal. This is simply
granting the city the ability to

2036
02:55:14,080 --> 02:55:22,920
consider applications in the future
>> for this or other purchases.

2037
02:55:19,920 --> 02:55:22,920
» Yes.

2038
02:55:23,279 --> 02:55:28,160
» Anything that wants to come.
>> That's right. That's right. That's the

2039
02:55:26,560 --> 02:55:32,479
distinction. Sorry to sorry to
interrupt.

2040
02:55:29,520 --> 02:55:37,680
» I'm like
okay. So there you have it. Do I have a

2041
02:55:36,160 --> 02:55:44,000
motion?
>> Motion. Do I have a second? Okay. All in

2042
02:55:41,359 --> 02:55:48,000
favor of discussion we've discussed and
acting on and approving resolution

2043
02:55:45,600 --> 02:55:53,359
number 2602
0827, a resolution for the city of Cula

2044
02:55:51,040 --> 02:55:58,000
to participate in a tax abatement
agreements and establishing guidelines

2045
02:55:56,080 --> 02:56:05,399
and criteria governing tax abatements
for economic development prospects in

2046
02:56:00,319 --> 02:56:05,399
Cula, Texas. Say I. I.

2047
02:56:06,640 --> 02:56:15,680
» All oppose say. A.
>> Okay. Who said I and who said N? Raise a

2048
02:56:12,720 --> 02:56:20,399
hand. I I three. Nay.
>> With no agreement to give them a reason.

2049
02:56:18,880 --> 02:56:23,399
» Yeah.
>> Right.

2050
02:56:23,520 --> 02:56:29,560
» Okay.
>> Development like HB.

2051
02:56:26,240 --> 02:56:29,560
» Motion carried.

2052
02:56:29,840 --> 02:56:37,240
» I had three.
>> Yes. and two against

2053
02:56:39,120 --> 02:56:46,160
number nine. This is discuss and
consider an act on approving proposals

2054
02:56:44,080 --> 02:56:51,040
application and tax abatements and
designation of reinvestment zones within

2055
02:56:48,800 --> 02:56:56,399
the city of Cachula. What what is our
zoning uh

2056
02:56:54,880 --> 02:56:58,560
what are they zoned for currently right
there?

2057
02:56:56,800 --> 02:57:00,640
» They're known light industrial which is
>> light industrial

2058
02:56:59,359 --> 02:57:06,319
» which is what is required for what
they're building.

2059
02:57:02,479 --> 02:57:12,000
This is just a a ordinance or resolution
to grant criteria on how you designate

2060
02:57:09,920 --> 02:57:15,720
zones. We're not designating anything
>> any.

2061
02:57:12,720 --> 02:57:15,720
» No.

2062
02:57:15,920 --> 02:57:22,560
» So Jeff have something on this one?
>> Yeah. Did you want to speak on the

2063
02:57:19,680 --> 02:57:27,840
process of tax abatements?
>> Yes. Um,

2064
02:57:25,760 --> 02:57:31,600
» so whenever an application is submitted,
the first thing we have to do is

2065
02:57:29,200 --> 02:57:38,640
designate a reinvestment zone. You can't
abate on any taxable value added to land

2066
02:57:35,200 --> 02:57:44,319
that's not in a reinvestment zone. U, in
my opinion, it's premature to act on

2067
02:57:41,520 --> 02:57:50,080
designated reinvestment zone deny. Uh,
one of the things you have to do before

2068
02:57:45,840 --> 02:57:54,240
you act on that is, uh, post uh, 7 days
in advance in the paper of record and

2069
02:57:52,319 --> 02:58:00,160
then also send certified letters to all
the taxing entities that taxed on that

2070
02:57:57,520 --> 02:58:05,200
specific land. So, we're not there yet.
Uh, David, is this just information p

2071
02:58:02,560 --> 02:58:09,680
purposes or is there action required?
Um, they had it to act on it, uh, Jeff,

2072
02:58:08,240 --> 02:58:13,680
but, uh, if you want to just go ahead
and explain how it works and what you

2073
02:58:11,520 --> 02:58:17,760
did, and if we need to, we could just go
ahead and table it.

2074
02:58:15,279 --> 02:58:23,680
» I I would take no action, but this would
be an appropriate agenda item once we

2075
02:58:20,960 --> 02:58:28,240
look at this application and uh, work
through the process of the negotiations

2076
02:58:26,000 --> 02:58:32,880
and come up with a structure that
benefits the residents of the city.

2077
02:58:30,560 --> 02:58:40,399
We're not there yet.
So basically this is anformational

2078
02:58:36,080 --> 02:58:44,160
» Yes. Yes, it is. Yes, mayor.
>> So if if any of the council had concerns

2079
02:58:42,560 --> 02:58:48,319
or anything else or wanted to see
something a little different, we could

2080
02:58:45,359 --> 02:58:51,840
still do that recommendation to you.
>> Absolutely.

2081
02:58:50,319 --> 02:58:57,439
» So we could leave it like that because
it says discuss to consider an act on

2082
02:58:54,479 --> 02:59:01,120
approving. So we need to table it. We we
wouldn't take any action. It's more of

2083
02:58:59,120 --> 02:59:08,479
anformational anything else. you can
table it and then come back with uh um

2084
02:59:06,479 --> 02:59:14,319
amendments or or things that you would
like to see added or or deleted from it.

2085
02:59:11,680 --> 02:59:18,880
This is just an application. This is not
just is not for the data center. It's

2086
02:59:16,800 --> 02:59:24,399
for everybody. This is for Walmart. This
is for HB. This is for a hospital.

2087
02:59:21,680 --> 02:59:29,279
Everything else.
>> Okay. So, if if uh it's just

2088
02:59:27,040 --> 02:59:33,120
anformational, anything questions you
have for for Jeff? Did you get to look

2089
02:59:31,279 --> 02:59:38,479
at the application? Is there something
that you want to see different? I mean,

2090
02:59:35,040 --> 02:59:43,439
I I'll tell you this. I I I I keep
seeing 10 years and 10 years and 10

2091
02:59:40,560 --> 02:59:48,800
years and I'm like, why so long? So many
things can happen so quickly. What if

2092
02:59:46,479 --> 02:59:52,720
what about five years, you know, and
then they come back every five years?

2093
02:59:50,560 --> 02:59:56,479
That's what I'd like to see, you know. I
don't want to give anybody a 10ear

2094
02:59:54,160 --> 03:00:01,120
slate. I I think five years would be
plenty and that's one thing I would like

2095
02:59:58,960 --> 03:00:04,319
to see. I'm not going to re I'm not
that's one my recommendations.

2096
03:00:02,560 --> 03:00:08,080
» I agree. But we need to change city
manager to a a city administrator. He's

2097
03:00:06,640 --> 03:00:11,200
not a manager.
>> Okay, we can change it.

2098
03:00:09,520 --> 03:00:18,640
» Not a problem. Yeah,
>> this is just an application to a form

2099
03:00:16,160 --> 03:00:23,439
» and
it would just be the form they would

2100
03:00:20,560 --> 03:00:27,920
they would use with a for it.
>> And that's my that's my only thing on DJ

2101
03:00:25,760 --> 03:00:31,279
Jeff. I I
>> I don't want to give anybody with the

2102
03:00:29,359 --> 03:00:36,000
the changing times the way they are and
everything else uh five years at a time.

2103
03:00:34,000 --> 03:00:39,040
I mean those computers and David and I
talked about that are only going to last

2104
03:00:37,680 --> 03:00:44,240
five years. What's going to happen after
that? So I think that this council would

2105
03:00:42,080 --> 03:00:49,600
love to see them come to us every five
years.

2106
03:00:46,319 --> 03:00:55,200
If if anybody not not just the data
center but five years with the moving

2107
03:00:51,840 --> 03:01:00,800
times 10 years is too long 15 no 20
worse but every five years you come back

2108
03:00:57,760 --> 03:01:05,640
to the table and let's let's reassess.
>> Understood.

2109
03:01:02,640 --> 03:01:05,640
Okay.

2110
03:01:07,520 --> 03:01:13,200
Anything else? Anybody have
>> you want to Jeb, do you want to speak

2111
03:01:11,359 --> 03:01:19,520
about the tax abatement anymore and
guess more information?

2112
03:01:15,120 --> 03:01:24,640
» I as as Steve Pena said, this item is
just about that application which would

2113
03:01:21,760 --> 03:01:29,439
be appended to the guidelines and that
it the if we need to modify that

2114
03:01:27,439 --> 03:01:34,319
application in the future, we can do
that. Uh and typically we do modify

2115
03:01:32,640 --> 03:01:38,240
those depending on the sector that's
applying. So we've got flexibility to do

2116
03:01:36,399 --> 03:01:42,960
that. But in my opinion, it doesn't
require separate action to adopt the the

2117
03:01:40,880 --> 03:01:47,760
application as written. We we've adopted
our guidelines and we're good.

2118
03:01:45,279 --> 03:01:51,760
» So, let's uh let's uh let's I'm going to
ask for a motion to table this uh and

2119
03:01:49,760 --> 03:01:56,399
with some amendments there. And Steve,
will you look at some of that?

2120
03:01:53,520 --> 03:02:02,319
» Yes, I I did and I have looked at it. Um
I I am interested in in Mr. Snowden

2121
03:01:59,439 --> 03:02:06,479
talking a little bit about some of the
very positive things that he's seen and

2122
03:02:04,720 --> 03:02:13,359
some of the other counties that have
done it with tax rates just by way of

2123
03:02:09,920 --> 03:02:19,439
background information and and I know I
just happened to catch it Monday and uh

2124
03:02:17,840 --> 03:02:24,960
» Right. Right.
>> Yes. Is this is this the time to go

2125
03:02:21,439 --> 03:02:29,920
through that? I'm glad to do it.
We've got Cipher Digital's tax rep on

2126
03:02:28,319 --> 03:02:34,279
the phone. Garrett, hang up. I don't
want to give you all my inside scoop.

2127
03:02:35,520 --> 03:02:43,040
» I'm still here.
>> Uh I've worked with Garrett before so he

2128
03:02:39,920 --> 03:02:47,600
understands. Um so when we when we
structure a tax abatement we can

2129
03:02:45,040 --> 03:02:54,000
incorporate a a pilot a payment le of
taxes and one of the advantages of that

2130
03:02:50,000 --> 03:02:57,920
is we can hold today's tax rate over the
term of the abatement agreement that's

2131
03:02:56,160 --> 03:03:03,359
important because due to the compression
that Steve mentioned when you bring in

2132
03:03:00,640 --> 03:03:10,080
the value that cipher put in that
application which I believe David did

2133
03:03:06,720 --> 03:03:13,760
they would they represent a tripling of
your net assessed value. I think that's

2134
03:03:12,399 --> 03:03:17,040
the number.
>> Yeah, I believe it's going to be more

2135
03:03:15,359 --> 03:03:21,920
than that. Current along with the city
is about $225 million

2136
03:03:20,000 --> 03:03:26,720
» and their their construction project
alone is $480 million plus another $1.5

2137
03:03:24,720 --> 03:03:29,760
billion in service.
>> Okay. So,

2138
03:03:27,520 --> 03:03:33,520
» and I'm Jeff, whenever whenever the time
comes, I'm happy to clarify anything

2139
03:03:31,520 --> 03:03:38,319
that's in the application. Um, and I
understand that I haven't greeted the

2140
03:03:35,359 --> 03:03:41,279
city council or or spoke yet in this
meeting, but if there's anything that

2141
03:03:39,600 --> 03:03:46,160
needs to be clarified in the application
or or the numbers, I'm happy to speak to

2142
03:03:42,880 --> 03:03:50,560
that. Thank Thank you, Garrett. Um,
>> um, Jeff, could you please explain who

2143
03:03:48,640 --> 03:03:55,120
Mr. Garrett is?
>> Yes. Garrett Peters is with a firm

2144
03:03:52,640 --> 03:04:00,319
called K Andrews, and they have been
engaged by Cipher to represent them in

2145
03:03:57,840 --> 03:04:06,479
the pursuit of this abatement. So, he's
representing Cipher and I've worked with

2146
03:04:03,439 --> 03:04:11,760
him across the table representing
counties and cities across the state and

2147
03:04:08,479 --> 03:04:16,160
I know him well. Um,
on the compression that Mr. Pñena

2148
03:04:13,680 --> 03:04:22,880
mentioned, this is super important. What
the state law here in Texas says is you

2149
03:04:19,760 --> 03:04:28,560
can only generate a certain amount of
revenue and grow that by up to three

2150
03:04:26,319 --> 03:04:34,319
currently what three and a half% a year.
So if you add all this new value that

2151
03:04:32,160 --> 03:04:39,520
this project would bring to your tax
base, there's only one thing that can

2152
03:04:36,319 --> 03:04:42,960
happen to your tax rate. It drops
tremendously through what's called

2153
03:04:41,359 --> 03:04:48,800
compression.
So short-term benefit is every taxpayer

2154
03:04:46,640 --> 03:04:54,000
would benefit from that tax rate
dropping due to compression.

2155
03:04:51,600 --> 03:04:59,680
um we have the ability with a payment
lies a pilot to actually freeze that tax

2156
03:04:57,279 --> 03:05:03,359
rate for cipher and so they would not be
able to ride that down during the the

2157
03:05:01,920 --> 03:05:08,160
term of the abatement agreement. That's
a negotiation. Uh though they would

2158
03:05:06,319 --> 03:05:13,359
certainly want to push back on that but
there is ways to engineer the impact of

2159
03:05:10,720 --> 03:05:19,120
all this value to where the benefit
lands more heavily on single family

2160
03:05:16,000 --> 03:05:23,840
residential than industrial. So that's
one advantage that we want to try and

2161
03:05:21,120 --> 03:05:27,439
pursue. We're early in the process. We
we have to draft agreements and have

2162
03:05:25,600 --> 03:05:32,319
some negotiations with the guidance of
the council and of course the input of

2163
03:05:30,000 --> 03:05:38,560
the public which is who I work for the
taxpayers. But that's an advantage of

2164
03:05:35,200 --> 03:05:43,760
tax abatement. No tax abatement. You
can't put in perimeter vegetative

2165
03:05:42,000 --> 03:05:50,479
screening. You can't put in decibel
level minimums for noise. you can't uh

2166
03:05:47,600 --> 03:05:55,520
protect or limit their ability to ch to
challenge the value every year with your

2167
03:05:52,960 --> 03:06:01,520
appraisal review board. The members of
which are volunteer and don't know data

2168
03:05:58,240 --> 03:06:06,240
centers. They'll be confronted with uh
very uh highly trained professionals

2169
03:06:04,479 --> 03:06:11,439
that will go and challenge those values
every year. We'd like to remove that

2170
03:06:09,359 --> 03:06:16,960
opportunity and and keep and define
those values up front to the benefit of

2171
03:06:14,319 --> 03:06:21,600
the city. So th those are just a few
advantages of getting into an agreement

2172
03:06:19,279 --> 03:06:25,840
as opposed to saying the city's not
interested in giving you any abatement.

2173
03:06:23,680 --> 03:06:31,240
You come, you come if you wish and then
you beat up our appraisal district and

2174
03:06:27,680 --> 03:06:31,240
you're on your own.

2175
03:06:37,040 --> 03:06:43,200
» Anything else on it?
>> Jeff, could you could you tell them what

2176
03:06:40,319 --> 03:06:48,160
you told me about u that county? I
forget which one it was. where they

2177
03:06:45,680 --> 03:06:52,080
actually got a refund of their county
taxes.

2178
03:06:49,760 --> 03:06:58,560
» Well, we that's the Jack County. We just
proposed that that on Monday but yes

2179
03:06:55,120 --> 03:07:04,000
we've uh proposed that that developer
this is a data center also that they're

2180
03:07:01,120 --> 03:07:10,160
going to actually provide a payment two
payments in lie one in of taxes and the

2181
03:07:07,200 --> 03:07:15,040
other one will be a going to a
restricted reserve account which will be

2182
03:07:12,240 --> 03:07:22,240
used to offset single family residential
ad valorum taxes through a refund every

2183
03:07:18,240 --> 03:07:26,160
year on or around May to June. So the
money will come in go to restricted

2184
03:07:24,000 --> 03:07:31,520
reserve account by ordinance that will
be defined as restricted to benefit

2185
03:07:29,040 --> 03:07:37,760
single family residential and then on
around May June of the following year if

2186
03:07:34,319 --> 03:07:42,000
you go to the courthouse and submit your
pay tax receipt you would be entitled to

2187
03:07:39,680 --> 03:07:46,240
a refund. That's the structure that we
just put forward for the commissioners

2188
03:07:43,760 --> 03:07:50,080
to consider on Monday. And in my mind
that would be the structure I would

2189
03:07:47,680 --> 03:07:54,560
recommend y'all consider in Cula. There
there's no cleaner way when a when a

2190
03:07:52,640 --> 03:07:58,479
when a taxpayer shows up says, "What's
in this for me? How do I benefit?"

2191
03:07:56,800 --> 03:08:02,560
There's no cleaner way to respond than
to say, "We we want to set this money up

2192
03:08:00,319 --> 03:08:07,960
to where we would be in a position to
refund you your tax your city taxes each

2193
03:08:04,960 --> 03:08:07,960
year."

2194
03:08:09,439 --> 03:08:18,000
» Just is that just city tax? Uh Jeff?
>> Yes.

2195
03:08:16,160 --> 03:08:22,800
» What was that? What was that? Was that
Mr. Yella? Yeah, if it was just city

2196
03:08:20,560 --> 03:08:26,319
tax, what we're talking about?
>> Yes, sir. That's the only thing. You

2197
03:08:24,399 --> 03:08:30,640
couldn't really
you couldn't really offset the other tax

2198
03:08:28,800 --> 03:08:35,279
entities since you don't you don't have
that responsibility for the school and

2199
03:08:32,800 --> 03:08:42,600
the county, but you could certainly
position the city to refund

2200
03:08:38,000 --> 03:08:42,600
city single family residential.

2201
03:08:45,680 --> 03:08:51,600
Okay, good. That was justformational
again.

2202
03:08:48,880 --> 03:08:54,880
I'm going to move on and uh ask
>> I'm sorry.

2203
03:08:52,560 --> 03:08:59,920
» Yes. Right. I'm gonna ask for a motion
to table this item so that we can make

2204
03:08:57,279 --> 03:09:02,800
some adjustments and look at that. Okay.
You have second.

2205
03:09:01,040 --> 03:09:04,960
» All in favor of tableabling item number
nine say I.

2206
03:09:04,319 --> 03:09:09,359
» I.
>> All opposed.

2207
03:09:06,720 --> 03:09:13,760
Motion carries.
And this is u tabled for the next

2208
03:09:11,520 --> 03:09:18,160
meeting. Okay.
Or do you want uh since September? We're

2209
03:09:16,720 --> 03:09:20,319
going to have a meeting September 3rd.
Mayor

2210
03:09:18,479 --> 03:09:25,600
» September regular meeting.
>> Regular meeting. Yes.

2211
03:09:22,560 --> 03:09:27,439
Uh uh table to regular meeting which is
the 13th.

2212
03:09:27,120 --> 03:09:31,000
» Yeah.
>> Something like it.

2213
03:09:40,479 --> 03:09:47,600
All right. Moving on to item number 10.
discuss and consider an act on escrow

2214
03:09:44,960 --> 03:09:53,840
agreement for the city cons consultation
cost between Cyper

2215
03:09:50,479 --> 03:09:57,120
uh Revly LLC developer and the city of
Cachulo. What's that about David?

2216
03:09:55,279 --> 03:10:01,200
» Hey Jeff, do you want to speak on that
one? Uh personally I think I think it

2217
03:09:59,760 --> 03:10:06,640
should be tabled today. I don't think
we're at that point. Um but if you want

2218
03:10:03,680 --> 03:10:11,279
to speak on it and provide the council.
>> Sure. This is a mechanism that the city

2219
03:10:08,800 --> 03:10:15,840
can consider using and then Mr. Peters,
I I've briefed him on this, but I'm

2220
03:10:12,960 --> 03:10:23,439
using this form and with other counties
and cities to where the you will end up

2221
03:10:19,600 --> 03:10:28,399
incurring some costs related to the
processing this application and going

2222
03:10:26,479 --> 03:10:33,279
through all the the things that you need
to. For example, before tonight, we

2223
03:10:30,399 --> 03:10:39,920
understood you might have to design
a dedicated line to transport your

2224
03:10:36,800 --> 03:10:46,399
sewage treated effluent
to uh from the plant to the uh site of

2225
03:10:44,399 --> 03:10:51,840
the project. Well, that's an engineering
cost and and uh the the mechanism of

2226
03:10:49,600 --> 03:10:57,520
this uh
form in front of you would be for Cipher

2227
03:10:54,479 --> 03:11:02,319
to put put up the money in in advance
and that way you would have liquidity to

2228
03:10:59,359 --> 03:11:08,640
pay for the fees that you would incur as
part of this process of reviewing their

2229
03:11:04,240 --> 03:11:12,640
application and negotiating with them.
Is that what that $75,000 would be agre?

2230
03:11:11,279 --> 03:11:17,359
» Yeah, that that's part of my issue is
the $75,000 because I'm aware after

2231
03:11:15,680 --> 03:11:23,200
today that Cipher would be willing to
put up about $250,000 towards escrow for

2232
03:11:20,560 --> 03:11:26,800
anything that the city needs as far as
uh experts or the doctor or people from

2233
03:11:25,359 --> 03:11:32,319
the university to come and do the
studies. So, I I wouldn't want to

2234
03:11:29,840 --> 03:11:38,160
approve this tonight until we uh we
corrected that number.

2235
03:11:35,680 --> 03:11:43,120
And also I I do have something uh here
and Steve can you uh check the validity

2236
03:11:40,720 --> 03:11:47,920
of this as well and and that this one
has David signing and why wouldn't I be

2237
03:11:46,080 --> 03:11:51,200
signing as mayor and executive officer
of the city of Cachula

2238
03:11:50,720 --> 03:11:54,000
» t t t t t t t t t t t t t t t t t t t t
t t t t t t t t t t t t t t t t t t t t

2239
03:11:51,279 --> 03:11:56,720
typically the council designates to sign
it. It could be you if you want.

2240
03:11:56,319 --> 03:12:00,920
» Okay,
>> you just have to put it on the document.

2241
03:12:01,680 --> 03:12:08,800
» So I think this answered and correct me
if I'm wrong. what Miss Yiannis was

2242
03:12:06,240 --> 03:12:14,720
saying earlier about these upfront
costs. What this does is they they

2243
03:12:11,359 --> 03:12:18,800
basically fund that. So your experts,
your people you're bringing in, that's

2244
03:12:16,479 --> 03:12:23,200
not coming out of your general fund.
Now, how they collect that, I don't

2245
03:12:20,399 --> 03:12:26,479
know. It's it's just part of of that
agreement. They're not giving it to you

2246
03:12:24,960 --> 03:12:29,760
for free. They'll they'll get it back
somewhere probably.

2247
03:12:28,319 --> 03:12:34,080
» And I know we're not approving it. It's
moreformational, but when David it comes

2248
03:12:31,760 --> 03:12:38,479
back, I would like to see that. I'm on
that. I think if there's other experts

2249
03:12:35,840 --> 03:12:42,399
you want to bring in. If there's other
people that you feel are necessary for

2250
03:12:40,319 --> 03:12:46,479
the deal,
then the city doesn't have to front the

2251
03:12:44,160 --> 03:12:51,279
money. You're going to have this account
where it can be drawn on. And that and

2252
03:12:49,279 --> 03:12:56,080
and again I keep saying I do talk to
Jeff a lot but he has told me what he

2253
03:12:54,319 --> 03:13:00,720
does in other counties and that was
actually he said it at the last meeting

2254
03:12:58,399 --> 03:13:05,920
but I know all this stuff there's a lot
to to digest and remember

2255
03:13:03,600 --> 03:13:11,600
» which is absolutely the reason for a
team effort because nobody can do this

2256
03:13:08,960 --> 03:13:15,520
constantly and still run the city. No no
way.

2257
03:13:13,279 --> 03:13:19,040
» All right. Uh so we're going to I'm
going to ask for a motion to table this

2258
03:13:17,200 --> 03:13:22,240
item. David, when do we need to bring it
back?

2259
03:13:19,920 --> 03:13:26,399
» Um, I think we I need to have a
conversation with Mr. Snowden and I'm

2260
03:13:24,319 --> 03:13:28,800
not too sure if uh the next meeting
maybe we should go a little past the

2261
03:13:27,680 --> 03:13:32,720
next meeting.
>> Okay. So, we're going to

2262
03:13:30,960 --> 03:13:35,920
» I I think that that there's going to be
several meetings coming up that are

2263
03:13:34,399 --> 03:13:39,439
going to be very important for the
council to create a forum. There's going

2264
03:13:37,680 --> 03:13:43,520
to be several special meetings and and
things like that coming up probably

2265
03:13:41,279 --> 03:13:48,399
every two weeks. This is a busy time of
year with a budget, with this. We we

2266
03:13:46,239 --> 03:13:54,399
absolutely need need you guys to to to
to do all this work. Okay. So, uh I'm

2267
03:13:51,840 --> 03:13:59,680
going to ask for a motion to uh table
this item in into September, probably

2268
03:13:57,359 --> 03:14:04,319
the last uh the last meeting of
September if we can get in uh if if need

2269
03:14:02,080 --> 03:14:08,840
be uh early October. Okay.
>> The first motion.

2270
03:14:05,279 --> 03:14:08,840
» Do I have a second?

2271
03:14:09,279 --> 03:14:16,160
» The second. Good. I got a second. All in
favor of tableabling this item to late

2272
03:14:14,080 --> 03:14:19,279
September, early October, say I.
>> I.

2273
03:14:16,560 --> 03:14:24,200
» All opposed.
Thank you. Motion carries.

2274
03:14:27,600 --> 03:14:36,640
Number 11, discuss and consider and act
on resolution number 26827A,

2275
03:14:34,239 --> 03:14:41,920
a resolution amending designation
authorized representative of city of

2276
03:14:38,239 --> 03:14:46,000
Cula to a text pool account. Uh I I have
a little something on this and I know

2277
03:14:43,760 --> 03:14:47,200
Mr. Flores is the one that presented
this, right?

2278
03:14:46,640 --> 03:14:52,160
» Yeah.
>> Okay. Mr. Flores, you you presented this

2279
03:14:50,080 --> 03:14:58,239
as a resolution amending authorized
representative. Tell us what it's about,

2280
03:14:55,680 --> 03:15:02,720
» mayor. Um
the city of Cula currently has a text

2281
03:15:00,800 --> 03:15:07,920
pool account. Text poolool is an
investment pool associated with the

2282
03:15:05,120 --> 03:15:13,840
state of Texas that go Texas
governmental entities send their money

2283
03:15:10,239 --> 03:15:18,880
to text pool for investment.
We currently use pool cash. We have one

2284
03:15:17,439 --> 03:15:24,399
bank account that takes care of
everything.

2285
03:15:20,960 --> 03:15:31,040
We want to start segregating the funds.
So primarily our first step would be to

2286
03:15:27,760 --> 03:15:35,920
create an EDC account. a general fund.
The general fund account already exists

2287
03:15:33,200 --> 03:15:40,880
and we've had it for years, but it's
been dormant. Actually, I believe the

2288
03:15:38,399 --> 03:15:50,000
authorized representative
is still Larry Do Alina. So, this is

2289
03:15:44,479 --> 03:15:55,600
just to um change the the names of uh
the people that can uh transact business

2290
03:15:52,960 --> 03:15:59,840
with text pool. We actually have a space
for one more name if the council wants

2291
03:15:58,080 --> 03:16:07,120
to add one more
>> and actually uh Steve this is uh my to

2292
03:16:03,840 --> 03:16:12,479
you and a legitimate of uh everything
I've read was that the mayor must sign

2293
03:16:10,720 --> 03:16:16,960
the designate
depending on the type of government. So

2294
03:16:14,720 --> 03:16:22,560
and then it should be I sign the
resolution city secretary and then we

2295
03:16:19,520 --> 03:16:26,319
pick the the designate.
That's my understanding and that's

2296
03:16:24,080 --> 03:16:32,160
everything that I've read. Uh we have
David here, Wanita absolutely as

2297
03:16:29,520 --> 03:16:36,800
designates, but the mayor still has to
sign them and so I I want to bring that

2298
03:16:35,040 --> 03:16:38,880
back and have a legitimate
>> You can amend it.

2299
03:16:38,080 --> 03:16:42,479
» We can amend it
>> amend it right now.

2300
03:16:40,160 --> 03:16:47,439
» Okay. So
>> because in the many code quotes it says

2301
03:16:46,000 --> 03:16:51,920
the only design of the city
administrator and treasurer. So are we

2302
03:16:49,680 --> 03:16:57,680
following this or who's the treasurer?
When you make your motion, you would

2303
03:16:53,680 --> 03:17:02,080
amend and to add anything to be updated.
>> We we'll update it.

2304
03:17:00,080 --> 03:17:05,760
» I just say just want to date it and then
whatever you

2305
03:17:03,359 --> 03:17:10,000
» we don't have a treasurer per se at the
city. Um

2306
03:17:08,239 --> 03:17:15,040
» that was years ago. Yeah. Remember our
MUN codes haven't been updated since

2307
03:17:11,760 --> 03:17:19,040
2018. So it's been a long time.
>> Next forever.

2308
03:17:16,800 --> 03:17:24,080
» Yeah. Yeah. But but it's not me on the
bottom. It's me, the city secretary uh

2309
03:17:21,840 --> 03:17:28,319
signs off as a as a notary and then
whoever we design designate and I would

2310
03:17:26,800 --> 03:17:33,080
recommend that that be David.
>> Absolutely. If the mayor wants her

2311
03:17:30,080 --> 03:17:33,080
signature,

2312
03:17:35,760 --> 03:17:42,800
» you have a second in favor of
>> what to hold on

2313
03:17:41,279 --> 03:17:47,920
» and remove Georgia.
>> Yes. And then have David. So first

2314
03:17:46,399 --> 03:17:52,080
Wanita
certifies my signature and the

2315
03:17:49,680 --> 03:17:55,680
designates at that point would be David
and Wanita.

2316
03:17:52,880 --> 03:18:00,960
» What what does it do exactly with this
by changing the desk? What what are they

2317
03:17:57,840 --> 03:18:06,960
doing authorization?
>> The mostly uh the design

2318
03:18:05,359 --> 03:18:12,160
if we're going to change bank account
for example two of the designates have

2319
03:18:09,520 --> 03:18:16,880
to sign the form.
If we remove Georgia at this point,

2320
03:18:13,840 --> 03:18:22,479
Georgia is the person authorized to
actually do the transactions.

2321
03:18:19,680 --> 03:18:27,840
So if we remove Georgia, we actually
have to pick another person to actually

2322
03:18:25,120 --> 03:18:32,479
do the transactions with tech because
there's only one person with text pool

2323
03:18:30,560 --> 03:18:37,359
actually doing transactions.
>> The others are designates to sign

2324
03:18:35,120 --> 03:18:40,239
documents.
>> Someone can make transactions. Your

2325
03:18:39,279 --> 03:18:44,080
order makes the transaction
>> as accounts payable. So you would have

2326
03:18:42,000 --> 03:18:48,720
add you could add yourself as an extra
>> what would what would be the easiest way

2327
03:18:45,920 --> 03:18:52,880
to accommodate what Mayor Luna wants.
>> What would be the

2328
03:18:49,520 --> 03:18:57,359
» how do we how do we satisfy her request
to be involved in the process without

2329
03:18:55,359 --> 03:19:01,600
having her have to do the work.
>> How do we make it a legal signature is

2330
03:18:59,120 --> 03:19:04,680
what the answer is. Let's right side it.
Go ahead.

2331
03:19:05,840 --> 03:19:13,760
» Okay. And you would you would be my
signature witness as and and David and

2332
03:19:11,359 --> 03:19:16,319
and and Georgia would Okay, I'm good
with that.

2333
03:19:14,319 --> 03:19:20,960
» The reason that we included, Miss
Martinez, as the person authorized to do

2334
03:19:18,720 --> 03:19:25,680
the transactions, she's the one issuing
the checks. So, she knows she made

2335
03:19:23,200 --> 03:19:30,239
$100,000 worth of checks. We need to
bring the money over for

2336
03:19:28,399 --> 03:19:34,239
» I'm good with that. I just want to write
say I'm just looking at the legality and

2337
03:19:32,160 --> 03:19:37,520
what I read and and and and doing it
appropriately. So,

2338
03:19:36,880 --> 03:19:42,000
Right.
>> I I just don't want to place an

2339
03:19:39,439 --> 03:19:45,120
administrative burden on you because
you're not at city hall.

2340
03:19:43,120 --> 03:19:49,840
» No, absolutely. But oversight is always
best for everyone else.

2341
03:19:47,120 --> 03:19:54,479
» So, absolutely. I'm good with that. So,
uh do we have a motion?

2342
03:19:53,359 --> 03:19:56,720
» Let me put it to you. Let me tell you
the question.

2343
03:19:54,960 --> 03:19:59,720
» So, what exactly is the motion?
>> Yes.

2344
03:20:00,960 --> 03:20:07,279
the signature
and she verifies my signature and David

2345
03:20:05,439 --> 03:20:11,600
and Georgia are the ones that move the
money around to invest.

2346
03:20:09,359 --> 03:20:16,560
» All right. So, you have a motion. Do I
have a second? All in favor?

2347
03:20:14,640 --> 03:20:20,479
» All opposed?
>> And I'm included in there also as a view

2348
03:20:20,000 --> 03:20:25,359
only.
>> As a view only. Okay. So, then put your

2349
03:20:23,439 --> 03:20:30,239
name in there as a view only until we
get that position filled. That way we

2350
03:20:27,520 --> 03:20:35,920
know all who has the capability. Okay.
>> Once you fill the position, we can do

2351
03:20:32,880 --> 03:20:42,200
another resolution and change.
>> Thank you, Mr. Woods.

2352
03:20:38,319 --> 03:20:42,200
» We still have other things.

2353
03:20:42,560 --> 03:20:50,239
» Yes. Yes, I'm here.
>> Moving along.

2354
03:20:47,279 --> 03:20:54,880
» All right. Here we go. Number 12.
This is uh number 12 is to discuss and

2355
03:20:52,399 --> 03:21:01,040
consider and approve the plan of finance
to issue one or more series of tax notes

2356
03:20:58,560 --> 03:21:05,760
authorizing the city staff, bond council
and financial advisors to proceed with

2357
03:21:03,439 --> 03:21:11,359
such financial approving this matter
incident and rel uh related to there

2358
03:21:09,200 --> 03:21:15,920
too.
>> Good evening mayor, council members, Mr.

2359
03:21:13,840 --> 03:21:21,680
Riot and staff. For the record, Robert
the Financial Consulting. We are the

2360
03:21:18,880 --> 03:21:27,439
city's financial advisor and I'm here
this evening to present the plan of

2361
03:21:23,359 --> 03:21:32,319
finance tax note series 2026.
Now I am sharing the presentation on the

2362
03:21:30,560 --> 03:21:37,279
screen
and on page two we have the proposed

2363
03:21:34,960 --> 03:21:41,439
projects. The projects consist of water
and wastewater system projects. I

2364
03:21:39,840 --> 03:21:45,920
believe uh some of the issues that
occurred with the recent flooding. Uh

2365
03:21:43,760 --> 03:21:49,640
the estimated cost for the projects is
about 1,525,000.

2366
03:21:50,000 --> 03:21:58,560
That number was provided to us uh by Mr.
Wright. And the estimated cost of

2367
03:21:55,200 --> 03:22:03,359
issuance about 100,000 and that includes
all consultant fees, uh financial

2368
03:22:01,279 --> 03:22:09,120
advisor, bond counsel, the placement
agent, uh the purchasing bank attorney,

2369
03:22:06,960 --> 03:22:13,920
uh the attorney general's office, all of
that's included in the 100,000. And

2370
03:22:11,760 --> 03:22:18,720
again, it's preliminary. We'll know more
or less come time when the bids are due

2371
03:22:16,239 --> 03:22:25,080
in about a month or so. Uh mayor,
council members, any questions on page

2372
03:22:22,080 --> 03:22:25,080
two?

2373
03:22:27,040 --> 03:22:34,560
» No. No.
>> If not, on page three, we have the

2374
03:22:31,279 --> 03:22:40,399
estimated tax rate impact analysis. Uh
we have the city's property values on

2375
03:22:36,960 --> 03:22:47,040
column B. There's a slight dip on final
net certified values on column B, row

2376
03:22:43,040 --> 03:22:52,160
10. So it went from 228.5 million to
225.6

2377
03:22:49,040 --> 03:22:57,359
million. Uh we have the city's existing
principal and interest debt on column D.

2378
03:22:55,040 --> 03:23:02,080
And we have the proposed tax note
financing. Uh the tax notes going to be

2379
03:23:00,160 --> 03:23:06,880
for seven years. It's going to have a
seven-year maturity. The first three

2380
03:23:04,080 --> 03:23:12,479
years we're making the payments uh
relatively skinny and then the last four

2381
03:23:09,760 --> 03:23:19,760
years we're showing a level debt payment
about 440,000 a year from year four to

2382
03:23:16,239 --> 03:23:25,439
year 7. By law we cannot exceed seven
years when we're issuing tax notes. The

2383
03:23:23,120 --> 03:23:31,200
estimated interest rate we're looking at
right now is about 4.5%

2384
03:23:28,800 --> 03:23:36,399
and that's on column
row 44.

2385
03:23:33,520 --> 03:23:43,520
And then again how this financing will
be paid back. We're are we are going to

2386
03:23:40,160 --> 03:23:47,760
use a transfer from the utility system.
In other words, this will be

2387
03:23:44,880 --> 03:23:54,800
self-supporting. So will not impact the
INS tax rate. And again, anytime the

2388
03:23:51,279 --> 03:24:01,279
council can change that, they can either
use utility revenues or INS tax rate

2389
03:23:59,120 --> 03:24:04,800
levy revenues in order to pay the debt
back. But right now, we're looking at

2390
03:24:02,960 --> 03:24:09,760
this potential loan to be
self-supporting. So that's why we have

2391
03:24:07,120 --> 03:24:15,600
on column I a negative amount which
matches exactly what the loan is on

2392
03:24:12,479 --> 03:24:23,520
column E. So there is no impact to the
INS tax rate on column K. It's roughly

2393
03:24:20,080 --> 03:24:28,239
47 cents uh this current fiscal year and
roughly 47.5

2394
03:24:25,760 --> 03:24:32,600
uh the next two.
Any questions on page three?

2395
03:24:32,960 --> 03:24:42,640
Okay, I'll turn to page four. We have
the timetable again this evening.

2396
03:24:40,160 --> 03:24:48,479
Bear, you and the council are just
approving the plan of finance. This

2397
03:24:45,520 --> 03:24:54,319
allows your financial advisor, your bond
counsel to work with Mr. Wright will

2398
03:24:51,200 --> 03:25:00,800
come and staff will come back at a later
date and that later date will be

2399
03:24:57,120 --> 03:25:06,960
Thursday, September the 24th. In between
today and the 24th of September, we're

2400
03:25:04,160 --> 03:25:13,279
going to be working on a term bid sheet.
uh the placement agent is going to send

2401
03:25:08,880 --> 03:25:16,399
that final term bid sheet to the uh
potential banks that are going to be

2402
03:25:14,880 --> 03:25:22,800
bidding on the loan. When I say
potential banks, it's a minimum of 25

2403
03:25:19,279 --> 03:25:26,640
banks instate and out of state. 25 or
more banks that will receive your

2404
03:25:24,880 --> 03:25:31,200
information, your audit, this
presentation, and other legal and

2405
03:25:28,960 --> 03:25:36,800
financial information. And they'll
consider submitting a bid. And the bids

2406
03:25:34,160 --> 03:25:43,279
will be due on Thursday, September the
24th, that morning at 10:00. And we're

2407
03:25:40,960 --> 03:25:48,640
potentially, again, if Mr. Wright lets
us know here in the next couple of days,

2408
03:25:45,680 --> 03:25:55,040
if Thursday, September 24th, works for
the city council to meet. And if so, the

2409
03:25:51,600 --> 03:25:59,600
bids will be due that morning. And that
evening, we'll present the lowest

2410
03:25:57,439 --> 03:26:04,720
interest rate
to the city council for their

2411
03:26:02,239 --> 03:26:10,319
consideration for the financing to be
approved as final. So again, today,

2412
03:26:07,840 --> 03:26:16,239
you're not approving to get into a loan.
You're not approving uh to borrow $1.6

2413
03:26:13,760 --> 03:26:21,760
million. All you're approving is to
allow your consultants to work with Mr.

2414
03:26:18,160 --> 03:26:26,880
right, and your staff to come back more
or less on September the 24th

2415
03:26:24,479 --> 03:26:32,640
and bring you a financing with the
lowest interest rate. And at that

2416
03:26:30,080 --> 03:26:39,439
evening, you'll be considering the
financing as final. And if you approve

2417
03:26:35,439 --> 03:26:44,399
it, you'll receive the funds on October
the 15th,

2418
03:26:41,520 --> 03:26:50,800
just about three weeks later.
Any questions, Mayor? council members.

2419
03:26:48,080 --> 03:26:54,880
» So, so the uh reason that we're doing
this and we contacted Mr. Ticaradina is

2420
03:26:53,279 --> 03:27:00,080
uh the flood that we have here in the
community. Uh there's no guarantees at

2421
03:26:57,680 --> 03:27:05,120
this point when FEMA would reimburse the
city for uh the damages that occurred to

2422
03:27:03,200 --> 03:27:10,399
infrastructure within the city which we
did have uh two lift stations which one

2423
03:27:07,600 --> 03:27:15,520
is located at Jack Curtis property. one
only Garage Street was they were both

2424
03:27:12,560 --> 03:27:20,640
100% destroyed by the floodwaters. Uh
wastewater plant received a lot of dirt,

2425
03:27:17,760 --> 03:27:25,040
sand, and rock. Uh it messed up our
mechanical bar screens that we currently

2426
03:27:22,399 --> 03:27:29,359
have in place. Uh they the shafts in
them literally broke because of the

2427
03:27:26,800 --> 03:27:35,200
amount of debris that came through. Um
the city under emergency declaration and

2428
03:27:31,920 --> 03:27:40,080
city's had to put out money to uh to fix
these things and mitigate them. also the

2429
03:27:37,439 --> 03:27:44,720
mitigation uh keep compliance with TCEQ.
Uh when the lift stations went down, we

2430
03:27:41,840 --> 03:27:51,279
bypassed them with pump trucks. Um all
that was cost to the city. So um FEMA

2431
03:27:49,439 --> 03:27:55,439
has said it could be from two months to
two years before there is any type of

2432
03:27:52,960 --> 03:27:59,520
reimbursement. Uh they got a little
skittish because they're saying that

2433
03:27:56,960 --> 03:28:04,880
President Trump has not signed the major
disaster declaration for this area. So,

2434
03:28:03,120 --> 03:28:09,840
they're concerned if there even will be
any significant reimbursements. Um, and

2435
03:28:08,160 --> 03:28:14,399
this is what's prompting prompting
administration to actually take out a

2436
03:28:11,760 --> 03:28:19,439
bank loan. Um, moving forward from this,
you notice Mr. Tikarina said that the

2437
03:28:16,560 --> 03:28:23,520
first few years would be skinny. Um,
what we're hoping for in the first two

2438
03:28:21,600 --> 03:28:28,239
years or even to four years, we're going
to hope that FEMA reimburse. If FEMA

2439
03:28:26,399 --> 03:28:32,560
does not reimburse, our second outlet is
going to be the Texas Water Development

2440
03:28:29,680 --> 03:28:36,239
Board, which gives municipalities 0%
loans. The problem with water

2441
03:28:34,640 --> 03:28:42,239
development board is they take over a
year to approve them. So the the need is

2442
03:28:39,279 --> 03:28:46,399
today it's not in a year. So that's why
we're trying to go this route.

2443
03:28:44,560 --> 03:28:50,640
» And this is a total impact from the
flooding been there. Was there

2444
03:28:49,520 --> 03:28:55,120
» two?
>> There's there's two lift stations. Uh

2445
03:28:52,800 --> 03:28:59,760
each lift station has uh two uh two
pumps each. So there's four plus all the

2446
03:28:57,760 --> 03:29:04,800
electrical panels. Everything went under
the underwater.

2447
03:29:02,000 --> 03:29:08,960
» Uh Legarda Street and then out on IH35
on Jack Curtis property, which is the

2448
03:29:06,560 --> 03:29:13,680
more the bigger one. I think that one
handled probably about 30% of the

2449
03:29:10,640 --> 03:29:17,359
community. Um and it is already they're
already working on repairing that one

2450
03:29:15,279 --> 03:29:21,040
and actually replacing almost everything
there.

2451
03:29:18,560 --> 03:29:24,720
David, uh, just to to clarify, and I
know you and I had talked about this a

2452
03:29:22,479 --> 03:29:30,160
couple of times, but so that I know Mr.
Alvarado had mentioned it also, will you

2453
03:29:27,359 --> 03:29:34,239
be trying to mitigate especially Jack
Curtis pump to get that some of that

2454
03:29:32,239 --> 03:29:40,239
electrical out of there in the event
that we have this happen again? So, so

2455
03:29:37,680 --> 03:29:45,760
yes, one one other thing that was uh was
told to the city is that they have

2456
03:29:42,880 --> 03:29:50,880
mitigation plans through FEMA
uh that are available and that they will

2457
03:29:48,000 --> 03:29:55,680
do it and from from what they say they
can be 100% paid by FEMA. Um is it true?

2458
03:29:54,399 --> 03:29:58,479
I don't know because I haven't gone down
the road yet, but that's what I have

2459
03:29:57,040 --> 03:30:02,479
been told.
>> So, everything is just dependent on that

2460
03:30:00,640 --> 03:30:06,880
declaration and and we just don't have
it. But no matter what, we need that we

2461
03:30:05,120 --> 03:30:13,680
need that lift station. We need that
back and operational. So David had told

2462
03:30:10,000 --> 03:30:16,640
me that that takes about what 35% of our
>> carries.

2463
03:30:14,319 --> 03:30:21,120
» Yes. So the Jack Curtis does that's
that's a lot of your commercial uh waste

2464
03:30:19,040 --> 03:30:25,359
waterers going to that one. Legally is
less significant. Um but where we are at

2465
03:30:23,760 --> 03:30:29,279
right now is both of those lift stations
are bypassed with diesel pumps and we

2466
03:30:27,600 --> 03:30:36,560
know how much diesel is compared to
rental pump. Um the Garage Street I I've

2467
03:30:34,800 --> 03:30:41,600
gotten more than one quote because I've
had time to do that and I've gotten two

2468
03:30:40,000 --> 03:30:47,200
pretty different numbers. You know, I
got a $115,000

2469
03:30:43,520 --> 03:30:53,680
number and I got a $250,000 number to to
repair. So, obviously, I'll be coming to

2470
03:30:49,439 --> 03:30:57,920
council for the the lower amount.
The last thing last thing too is the

2471
03:30:55,600 --> 03:31:03,279
monies that that we borrow from the city
are going to be specific to the projects

2472
03:30:59,760 --> 03:31:06,880
for the flood. So if we don't use that
dollar amount, it gets returned to the

2473
03:31:04,800 --> 03:31:10,720
bank. So they're going to keep track of
exactly what it's being used for and if

2474
03:31:08,560 --> 03:31:15,520
we don't use it, we return it and they
take that off of our debt obligation.

2475
03:31:13,920 --> 03:31:20,640
» It'll be back to
>> correct payroll with it or none of that.

2476
03:31:18,720 --> 03:31:24,160
For repair
the flood

2477
03:31:21,120 --> 03:31:28,479
» specifically for the flood. Yes.
>> Any qu any other questions? So, what do

2478
03:31:26,960 --> 03:31:31,760
we need today, David?
>> Uh, need a motion of approval really for

2479
03:31:30,800 --> 03:31:34,239
the agenda item.
>> Okay.

2480
03:31:32,239 --> 03:31:38,080
» And then after that, Mr. Ticketing is
going to advertise the bank and he was

2481
03:31:36,080 --> 03:31:44,160
interested in uh giving us a loan.
>> All right. So, I'm asking for a motion

2482
03:31:40,880 --> 03:31:51,239
to approve a plan of finance to issue
out one or more series of tax notes for

2483
03:31:46,640 --> 03:31:51,239
the city. Do I have a second?

2484
03:31:51,279 --> 03:31:59,920
Uh m Mr. Garcia second. All in favor of
approving the plan to finance uh the

2485
03:31:56,800 --> 03:32:05,520
flood mitigation project say I.
>> All opposed. Motion carries.

2486
03:32:03,680 --> 03:32:08,640
» Thank you, mayor, council members, Mr.
Wright. I appreciate the opportunity to

2487
03:32:07,040 --> 03:32:10,640
present this evening. I hope everybody
has a great night.

2488
03:32:09,920 --> 03:32:14,800
» Thank you. Thank you.
>> Thank you, Robert.

2489
03:32:11,680 --> 03:32:18,080
» Yes. Thank you.
>> All right.

2490
03:32:16,560 --> 03:32:21,680
This is number 13. to discuss and
consider and act on approving a

2491
03:32:19,840 --> 03:32:25,920
resolution by the board of aldermen of
the city of Kula establishing the city's

2492
03:32:23,520 --> 03:32:31,359
intention to reimburse itself to prior
law lawful expenditures uh funds with

2493
03:32:28,720 --> 03:32:35,359
the proceeding obligations to be issued
on behalf of the city authorized

2494
03:32:33,520 --> 03:32:39,840
purposes and the matters in connection
there with

2495
03:32:37,439 --> 03:32:45,520
» this one here is also for I believe for
the bond council let's say

2496
03:32:43,520 --> 03:32:50,000
» that's that's correct
>> that's yours

2497
03:32:48,160 --> 03:32:53,279
Oh, I'm sorry. The bottom
>> uh Juan

2498
03:32:51,040 --> 03:32:56,080
» Juan Auan.
>> Yeah. Juan Aguilera. Can you all hear

2499
03:32:55,120 --> 03:33:01,040
me?
>> Yes, we sure can.

2500
03:32:58,000 --> 03:33:05,840
» Okay. Good evening. U mayor, council
members, uh board board of alderman. U

2501
03:33:03,840 --> 03:33:10,720
so what we have prepared for you today
is a reimbursement resolution. This is

2502
03:33:08,640 --> 03:33:16,720
something that uh the city has done in
the past. Uh we've done it a number of

2503
03:33:13,359 --> 03:33:23,600
times. And what it simply is is um since
we're using um uh you you may go through

2504
03:33:20,319 --> 03:33:29,200
some expenses u now for the uh the
projects that were discussed by

2505
03:33:25,520 --> 03:33:34,880
Robertina and Mr. Wright for the um the
damage that has been done. So by

2506
03:33:32,399 --> 03:33:41,520
adopting this resolution, you're making
a formal declaration saying that you may

2507
03:33:38,720 --> 03:33:47,120
want to reimburse yourselves for any
expenditures that you make now before

2508
03:33:44,319 --> 03:33:54,479
you start getting uh receive funds from
the tax notes. This resolution does not

2509
03:33:50,880 --> 03:34:00,640
in any way obligate the city to issue
any tax notes or to do or to enter into

2510
03:33:57,840 --> 03:34:07,439
any kind of a of an obligation or debt
in in in later on. The only thing that

2511
03:34:03,840 --> 03:34:14,560
it does is it meets the requirements of
federal tax laws to allow you if you

2512
03:34:10,720 --> 03:34:20,399
wish also to be to reimburse yourselves
for for expenditures that you may make

2513
03:34:17,040 --> 03:34:29,600
between now and when you if and when you
issue debt. So again, uh this is all for

2514
03:34:25,359 --> 03:34:35,200
uh federal tax purposes and u it'll if
if the city is going to be making some

2515
03:34:32,560 --> 03:34:41,600
expenditures, it's always a good idea to
have this reimbursement resolution in

2516
03:34:37,760 --> 03:34:46,960
place. Are there any questions?
those are. So, so just to uh add on to

2517
03:34:44,640 --> 03:34:51,920
what he's saying, uh everything that has
been like has been spent or services

2518
03:34:49,359 --> 03:34:56,560
that have been done due to the flooding,
the city has not paid those vendors. So,

2519
03:34:54,720 --> 03:35:01,359
we wanted to have this resolution in
place before we paid those vendors so

2520
03:34:59,120 --> 03:35:05,840
that the bank sees that and see that the
council already approved it. So, what

2521
03:35:04,160 --> 03:35:09,840
happened during the flooding was, and I
was right there with David, uh, uh,

2522
03:35:07,920 --> 03:35:13,680
companies came up right away without
question and said, "How many trucks do

2523
03:35:11,680 --> 03:35:18,720
you need? Who do you need?" And they
were they were at it. Uh, at that point

2524
03:35:16,080 --> 03:35:23,600
it was it was a it was a disaster and
they acted on it accordingly and those

2525
03:35:21,760 --> 03:35:29,200
those people got to get paid now. I
mean, you know, they they they did their

2526
03:35:25,359 --> 03:35:33,200
part uh without fail. And so we did
David and the team and some some of the

2527
03:35:31,120 --> 03:35:39,200
city members did everything they could
to try to salvage what we had, but it

2528
03:35:35,680 --> 03:35:44,479
was just inevitable just so
>> and and I I'd like to point out, mayor,

2529
03:35:41,520 --> 03:35:49,840
that the resolution and and this is in
accordance to the uh the tax laws, the

2530
03:35:46,479 --> 03:35:57,359
federal tax laws. uh if by adopting this
resolution we can go backwards 60 days.

2531
03:35:53,600 --> 03:36:02,880
So any expenses that you have incurred
uh backward from uh you know two months

2532
03:36:00,160 --> 03:36:08,000
from from today's if you decide to move
forward with the adoption of the of the

2533
03:36:05,120 --> 03:36:13,120
resolution you can we can go back 60
days and capture any kind of expenses so

2534
03:36:11,359 --> 03:36:16,920
that you could be able to reimburse
yourself in the future.

2535
03:36:17,040 --> 03:36:23,680
and moving forward three years.
>> Go ahead.

2536
03:36:22,000 --> 03:36:28,479
» No, that's Go ahead.
>> No, that that that's it. So, just

2537
03:36:25,600 --> 03:36:35,359
backwards 30 60 days. So, any
expenditure that you made 60 days u uh

2538
03:36:31,920 --> 03:36:39,720
before today and then forward it's uh
three years up to three years.

2539
03:36:43,840 --> 03:36:51,040
All right. That being said, on item 13,
do we have approval to uh to approve

2540
03:36:49,040 --> 03:36:56,800
this resolution, a board of alderman for
the city of Cachula to establish the

2541
03:36:52,880 --> 03:36:58,880
city intention to reimburse itself?
>> I have a motion.

2542
03:36:58,239 --> 03:37:05,840
» Second.
>> You second it. All in favor of approving

2543
03:37:00,800 --> 03:37:13,279
this uh resolution say I. All opposed.
First, Miss Yanes. Second, Mr.

2544
03:37:09,680 --> 03:37:19,359
Rodriguez. Motion carries.
Thank you very much, mayor. And and uh

2545
03:37:15,600 --> 03:37:23,600
we are available just at any any further
uh questions or or anything else that we

2546
03:37:21,920 --> 03:37:27,279
could help the city. I know that you
have quite a number of projects that

2547
03:37:25,439 --> 03:37:33,760
you're considering. And we've been
working with the city now since uh 2011

2548
03:37:30,479 --> 03:37:41,120
and uh anything we could do uh to to
help just just let us know. Well, again,

2549
03:37:37,520 --> 03:37:45,920
» we we we do work strictly on on the bond
financing end, anything having to do

2550
03:37:43,279 --> 03:37:51,200
with the financing. Uh, but we will work
in in on tangent with your your city

2551
03:37:49,200 --> 03:37:55,200
attorney and then of course Mr.
Deherina, Jeff Snowden. I've known Jeff

2552
03:37:53,279 --> 03:37:59,680
for a long time. I've worked with Mr.
Wright. So, anything we could do as part

2553
03:37:56,960 --> 03:38:02,720
of the team, uh, let us know.
>> Thank you so much. We we appreciate

2554
03:38:01,359 --> 03:38:07,680
that, sir.
>> Thank you.

2555
03:38:04,000 --> 03:38:11,840
» Good night. Good night.
>> Right, moving on to number 14. Can we

2556
03:38:09,680 --> 03:38:15,040
already say yes?
I'm going to let them do their deal, but

2557
03:38:13,439 --> 03:38:19,040
we've always helped out with this. I'm
going to recommend also that that we

2558
03:38:17,120 --> 03:38:25,439
don't hold them up any longer. I'm going
to let uh uh Miss Morales and

2559
03:38:23,680 --> 03:38:30,319
give us their presentation and we'll
work from there. This is item for 14.

2560
03:38:28,479 --> 03:38:35,840
discuss and consider and request Sheriff
Ramita says uh to join partnership in

2561
03:38:32,960 --> 03:38:39,279
this year's National Night Out event. Go
ahead.

2562
03:38:36,960 --> 03:38:42,880
» Y'all had a y'all had a a long night, so
I won't take up too too much of your

2563
03:38:41,040 --> 03:38:46,399
time. So, uh y'all know me. My name is
Rosario Morales and I'm here

2564
03:38:44,880 --> 03:38:52,560
representing the sheriff's office along
with my coworker, Mr. Angela, who is

2565
03:38:49,439 --> 03:38:57,120
also our PIO. And um I passed out
earlier a save the date just to kind of

2566
03:38:54,800 --> 03:39:02,080
get an idea of what we're you know we're
proposing. Um the agenda item is to join

2567
03:39:00,319 --> 03:39:08,399
in partnership with uh this year's
National Night Out. Um and like you said

2568
03:39:05,840 --> 03:39:15,680
in the past y'all have uh helped the
county or the sheriff's office to help

2569
03:39:11,439 --> 03:39:21,040
uh put on this event. And so um that's
what we're here for to make that request

2570
03:39:18,319 --> 03:39:26,319
to uh join in partnership. Our plan is
to host this um on October 6 which is a

2571
03:39:23,680 --> 03:39:34,239
Tuesday um from 5 to 8 and we're looking
at Plasa Flora uh because the park in

2572
03:39:30,640 --> 03:39:39,520
town is not ready yet of course and um
so National Night Out Mr. I kind of

2573
03:39:37,359 --> 03:39:47,120
elaborate, but um it's basically a
community event um where we host

2574
03:39:42,160 --> 03:39:52,720
different uh music and um vendors uh
free to the public and free uh for

2575
03:39:50,479 --> 03:39:57,279
people to come and visit with first
responders, uh local law enforcement, uh

2576
03:39:55,600 --> 03:40:01,600
businesses in the community and things
such as that. So, I don't know if you

2577
03:39:59,279 --> 03:40:04,960
want to add any
fields.

2578
03:40:02,319 --> 03:40:09,040
» Correct. Correct. So, um it's an annual
thing and that's why weird that it's a

2579
03:40:06,880 --> 03:40:15,120
Tuesday, but that's a national night out
and I think all the cities along I35

2580
03:40:12,960 --> 03:40:22,399
that you might know um also hosted in
the same time. Um so we are, you know,

2581
03:40:20,080 --> 03:40:27,040
hoping to promote that uh community
involvement with the school. We put it

2582
03:40:24,560 --> 03:40:31,040
out to the school, the community. Um we
do get people that come from out of town

2583
03:40:29,200 --> 03:40:36,640
because they have family here and they
know the locals. Um and so we're hoping

2584
03:40:34,640 --> 03:40:41,200
to put on event like that last year.
Last year we were able to host a car

2585
03:40:38,000 --> 03:40:45,760
show. Um we had a band um different
things like that. Um giveaways,

2586
03:40:43,200 --> 03:40:53,279
different local vendors and elected
officials. The city was there. Everyone

2587
03:40:48,160 --> 03:40:57,840
gave out stuff and it was a well uh uh
uh planned I guess organized and

2588
03:40:55,279 --> 03:41:02,120
attended event. So we're here to ask
answer any questions they may have.

2589
03:41:04,239 --> 03:41:12,720
You make a motion to approve. How are we
supporting?

2590
03:41:09,439 --> 03:41:17,840
» I heard that you're possibly hoping that
people come from out of town into Cula

2591
03:41:15,200 --> 03:41:22,319
to attend the event. um if something
like that happens and it's it's uh

2592
03:41:20,399 --> 03:41:26,960
there's advertisement also included to
that effect that the event is eligible

2593
03:41:25,040 --> 03:41:30,880
for hottack
um the city could make a hot tack

2594
03:41:28,880 --> 03:41:33,600
donation towards the event and I believe
the city did last year if I remember

2595
03:41:32,960 --> 03:41:41,920
correctly
>> number from last year and um it's it was

2596
03:41:36,800 --> 03:41:48,800
around $7,400 and that included uh music
uh the bounce houses that we had um the

2597
03:41:45,439 --> 03:41:51,680
portable or portaotties that we had.
>> Is that your total amount that you paid

2598
03:41:50,319 --> 03:41:58,080
for the event?
>> Uh, no. We had other uh uh donations. We

2599
03:41:55,680 --> 03:42:02,080
rely on donations from the community or
businesses that donate to the sheriff's

2600
03:41:59,680 --> 03:42:07,200
office um to help put on those things
because of course um we give away things

2601
03:42:05,439 --> 03:42:12,080
so we have to buy the you know those
kind of things to post. Do we have

2602
03:42:09,760 --> 03:42:15,080
documentation of how much we help with?
>> Yes.

2603
03:42:16,399 --> 03:42:21,200
not to cheat. That's what I was asking.
That's why I'm saying and also or

2604
03:42:20,560 --> 03:42:25,120
something like that.
>> Are there any other major organizations

2605
03:42:22,880 --> 03:42:30,479
that donate to you besides the city and
of course the sheriff's department?

2606
03:42:27,200 --> 03:42:36,479
» Um at this at this time, no. Um we are
going to go to the county as well, but

2607
03:42:32,720 --> 03:42:42,120
um like I said, we rely on donations.
David, does that include waving the fee

2608
03:42:38,399 --> 03:42:42,120
at the at the plot?

2609
03:42:42,640 --> 03:42:48,399
» All right.
>> Um I would make a recommendation not to

2610
03:42:45,760 --> 03:42:52,920
exceed $10,000 and then we can go from
there. That would be administration's

2611
03:42:49,920 --> 03:42:52,920
recommendation.

2612
03:42:56,720 --> 03:43:06,080
The first motion would be not to exceed
$10,000 to include the the waving of the

2613
03:43:01,359 --> 03:43:10,160
fee for Las the uh plat.
>> All right. All in favor of approving not

2614
03:43:08,160 --> 03:43:14,880
to exceed uh for the national night out
$10,000 and the waving of the fee for

2615
03:43:12,560 --> 03:43:21,680
the plat say I. I.
>> All opposed. Motion carries.

2616
03:43:19,439 --> 03:43:26,160
» We'll be back with more information and
uh info to sign up as vendors. Thank

2617
03:43:25,279 --> 03:43:27,600
you.
>> All right. Sh.

2618
03:43:27,199 --> 03:43:30,760
» Good night.
>> Good night.

2619
03:43:31,760 --> 03:43:38,560
» I know we're going to go into close
session with number 15. Um and I also we

2620
03:43:36,239 --> 03:43:43,520
have a big discussion on number 17. I
know that we we have been at it for a

2621
03:43:41,359 --> 03:43:47,520
while. Uh even before I go into close
session, I want to bring up number 17

2622
03:43:45,120 --> 03:43:53,520
and I want to table that to a special
meeting and u with discussion with uh

2623
03:43:50,720 --> 03:43:57,600
David and and Steve. I think that uh
this requires a little more attention

2624
03:43:55,120 --> 03:44:02,720
and and a little more inform information
and things like that. So, I want I would

2625
03:43:59,600 --> 03:44:08,160
like to request to mo uh a motion for uh
tableabling this item. And you you

2626
03:44:04,640 --> 03:44:13,199
picked the dates. Y'all tell me when
do uh what what how far can we uh go to

2627
03:44:12,160 --> 03:44:17,840
a special meeting?
>> Personally, I would like it to be as

2628
03:44:15,040 --> 03:44:22,880
soon as possible. I'm just asking for my
own protection to have some kind of

2629
03:44:19,600 --> 03:44:26,960
investigation or council. So, I I don't
understand why we really need to pay

2630
03:44:24,160 --> 03:44:31,279
table it, but if you want to, we sure
can.

2631
03:44:28,640 --> 03:44:36,560
Okay. So, we'll talk about that in close
session. We're going to go in and move

2632
03:44:32,800 --> 03:44:40,000
on to item number 15. And this is to uh
consult with attorney. This is close

2633
03:44:38,319 --> 03:44:46,239
session Texas government code as
annotated in section 551.071

2634
03:44:43,840 --> 03:44:52,960
one consultation with attorney pending
or contemplated litigation. Uh item 15A

2635
03:44:49,680 --> 03:44:58,800
is ethics. Item 15B is employee
grievances. And item 15 C is agendas.

2636
03:44:58,880 --> 03:45:05,800
And the time
is 10:10. can

2637
04:28:42,319 --> 04:28:44,319
All

2638
04:28:55,840 --> 04:29:03,760
right, we are back in session. The time
is 10:54.

2639
04:29:01,199 --> 04:29:11,120
10:54 p.m.
Uh, we had discussion. No action was

2640
04:29:07,760 --> 04:29:17,920
taken in executive session on 15A
ethics, 15B employee agrievances or 15C

2641
04:29:15,920 --> 04:29:22,279
agenda.
So we are currently back in session.

2642
04:29:22,640 --> 04:29:32,319
So we don't have any actions to take on
item 15.

2643
04:29:29,600 --> 04:29:41,640
On item 17,
do I have a motion for discussion

2644
04:29:36,319 --> 04:29:41,640
or a motion from the city council?

2645
04:29:49,920 --> 04:29:56,120
I'll ask for if we have a motion one
more time on number 17.

2646
04:29:56,159 --> 04:30:06,600
If no motion on number 17 at this point,
there's no action on item number 17.

2647
04:30:14,080 --> 04:30:23,279
All right. Number 618.
Do I have a motion to adjurnn?

2648
04:30:20,800 --> 04:30:25,520
» All in favor of adjourning? Do I get a
second?

2649
04:30:24,640 --> 04:30:29,120
Second.
>> All in favor of adjournment

2650
04:30:27,520 --> 04:30:35,319
» say I.
>> All opposed.

2651
04:30:31,760 --> 04:30:35,319
We are journed.