[A. CALL TO ORDER]
[00:00:09]
AND TO THE REPUBLIC FOR WHICH IT STANDS.
ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE.
DECLARATIONS OF CONFLICT OF INTEREST BY A TRUSTEE.
I HAVE A CONFLICT ON ION SESSION IF THERE SHOULD BE ONE, UH, UNDER ITEM B ONE.
AND I'LL NOT BE, I'LL LEAVE THE ROOM AND I'LL PARTICIPATE IF THERE IS AN EXECUTIVE SESSION AND I DO HAVE A CONFLICT ON BUSINESS ITEM D ONE, WHICH I WILL REMAIN IN THE ROOM, NOT PARTICIPATE IN THE DISCUSSION AND WILL ABSTAIN FROM VOTING.
IS THERE ANY TRUSTEE? WOULD ANY TRUSTEE LIKE TO GO INTO EXECUTIVE SESSION? DON'T YOU WANT EXPLAIN? IT WAS POSTED AS A PLACEHOLDER IN CASE ANYONE HAD ANY LEGAL QUESTIONS ABOUT THE PROPOSED ASSIGNMENT.
SO IF NOT, IF NONE, WE'LL UH, BYPASS THE EXECUTIVE SESSION AND CONVENE THE SPECIAL MEETING
[D.1. Discuss and Consider Approval of Lessor's Consent to Assignment and Assumption of Lease Agreement from Gulf Copper & Manufacturing Corporation to Maritime, Defense and Industrial Financing Corporation.]
ITEM D ONE.AND, UH, I'LL JUST FACILITATE THE DISCUSSION BUT DON'T PARTICIPATE, DISCUSS AND CONSIDER APPROVAL OF LESSER'S CONSENT TO ASSIGNMENT AND ASSUMPTION OF THE LEASE AGREEMENT FOR GOLF, COPPER AND MANUFACTURING CORPORATION, THE MARITIME DEFENSE AND INDUSTRIAL FINANCING CORPORATION.
YOU HAVE A MOTION? I'LL SECOND THAT.
WE'LL OPEN IT UP FOR DISCUSSION AND I'LL NOT PARTICIPATE.
UH, TO SUMMARIZE THE, UH, INFORMATION AND BRIEFING, THIS IS A PROPOSAL FOR AN ENTITY NAMED MARITIME DEFENSE AND INDUSTRIAL FINANCING CORPORATION FOR M-D-I-F-C TO, UH, RECEIVE AN ASSIGNMENT OF THE LEASE FROM GULF COPPER ON ITS, UH, LEASEHOLD STATE ON PELICAN ISLAND.
UH, M-D-I-F-C IS A CORPORATE FACIL, UH, AFFILIATE, UH, UH, CHANT DEER DAVY CANADA, UH, UNDER, UH, OUR FEDERAL LAW AND OTHER LAWS IN OTHER COUNTRIES.
IT'S, THEY TYPICALLY HAVE A US HOLDING COMPANY THAT IS THE ENTITY THAT CONTROLS ALL US OPERATIONS.
AND THAT IS THE ENTITY, EITHER IT OR AN ASSIGNEE OF IT, A US SUBSIDIARY THAT IT MAY CREATE BE THE US AND THE OTHER POLICE.
IF SO, IT'S A GUARANTEE THAT LEASE.
AND SO, UH, THE PARENT COMPANY IS NAMED INEA OUT OF, UH, THE UNITED KINGDOM AND THEY HAVE, UH, OPERATIONS IN FINLAND, CANADA.
AND THEY HOPE TO HAVE IT IN THE UNITED STATES HERE IN GALVESTON AND IN PORT ARTHUR.
UM, ARTHUR PROVIDED INFORMATION ON THE, UH, GULF PROPER LEASE, WHICH, UH, EXTENDS FOR, UH, UNTIL 2036.
APRIL 31 PROVIDED SOME FINANCIAL INFORMATION.
AND, UH, I'M HAPPY TO ENTERTAIN ANY QUESTIONS YOU MIGHT HAVE ABOUT IT.
JIM, DO, UH, MEMORY GETS FOGGY.
IT'S SOMEWHERE ALONG THE TRAIL OF THIS TRANSACTION.
THEY WERE TALKING ABOUT RENEGOTIATING THIS LEASE, IF THAT'S STILL A PLAN.
YEAH, THAT'S STILL A PLAN, RIGHT? YEAH.
THAT ONCE THE LEASE GETS ASSIGNED, UH, BOTH SIDES HAVE AGREED IN OUR CONSENT TO ASSIGNMENT DOCUMENT THAT YOU'RE BEING ASKED TO APPROVE, TO NEGOTIATE IN GOOD FAITH FOR A NEW LEASE.
UH, THE GOAL IS TO GET IT DONE IN 60 DAYS.
UH, BUT I, IF WE CAN GET THAT DONE.
THE, THE PLAN IS TO NEGOTIATE WHAT, WHAT IS DROP DEAD? WHAT IS THE REASON FOR THE DROP DEAD DATE OF AUGUST 11TH? WELL, WHAT THEY SAID IS THEY'VE GOT A LOT OF PIECES IN PLACE AND THEY HOPE TO CLOSE SOON.
THE PRIMARY, PRIMARY ONE, YOU LEARN SOMETHING EVERY DAY.
BUT IF YOU'RE A FOREIGN COMPANY TRYING TO SET UP OPERATIONS IN THE US THERE'S A FEDERAL COMMITTEE FOR INVESTMENT IN THE US C-F-I-U-S.
UH, THEY'RE GOING THROUGH THAT PROCESS AND THEY HOPE TO BE, TO CLEAR IT WITH AN APPROVAL SOON, AT WHICH POINT THEY CAN CLOSE THIS DEAL.
AND SO THIS IS ONE OF THE STEPS THEY NEED TO DO.
AND SO THAT'S WHY IT WAS REQUESTED TO HAVE THE SPECIAL MEETING.
NO, THAT'S WHAT I, MY OBSERVATIONS NOT IMPACT THIS.
NUMBER ONE IS IF WE HAVE A DEADLINE, I, I FEEL LIKE I GOT A GUN TO MY HEAD TODAY IS THE DEADLINE
[00:05:01]
AND WE ASKED TO VOTE ON IT.THIS ONE I THINK PRETTY MUCH A NO BRAINER, BUT THERE MAY BE SOME THAT ARE A LITTLE STICKY.
I THINK IN THE FUTURE WE MAYBE POST A MEETING THREE OR FOUR DAYS IN ADVANCE.
IF WE HAVE ISSUES, WE CAN ALWAYS REPOST AND MEET THE DEADLINE.
NOT FOR THIS, BUT IN THE FUTURE, UH, NUMBER TWO, UM, I DON'T SEE THE PORT GETTING ANY CONSIDERATION FOR DOING THIS.
WE GOT A NEW TENANT WE DON'T KNOW ABOUT.
WE ALWAYS GET PROMISES THEY'RE GOING TO DO GOOD THINGS.
I'VE BEEN ON THE MORE OF THE END WHERE PEOPLE DON'T DELIVER THEIR PROMISES AND THEY, FOR WHATEVER REASON.
AND SO WHAT I'D LIKE TO SEE US AT LEAST CONSIDER IN THE FUTURE ON NOTHING IS ON THE BOOKS NOW.
'CAUSE WE CAN'T GO BACK AND CHANGE UNLESS WE HAVE A SOME REASON TO RENEGOTIATE A LEASE OR MAKE AN AMENDMENT TO THE LEASE.
BUT I'D LIKE THE BOARD TO CONSIDER IN THE FUTURE THAT WE PUT CLAUSES IN HERE AND I'VE DONE IT BEFORE, UM, IF THEY WANT AN ASSIGNMENT, IT'S GOT A STAGGERED REDUCTION IN TERM OF THE LEASE.
IF THEY COME IN HERE AND THEY GOT 20 YEARS LEFT ON THE LEASE, AND IF WE, WE AGREED TO AN ASSIGNMENT FIVE YEARS GETS CHOPPED OFF THE, THE LEASE, GIVE US SOMETHING TO SHORTEN THE STICK WHERE WE HAVE A CHANCE TO AND HAVE THAT GRADUATED.
IF IT'S THREE YEARS LEFT, YOU MIGHT GET SIX MONTHS TAKEN OFF.
BUT SOME GRADUATED SLIDE THAT IF YOU GET A, IF WE GET ASSIGNMENTS OF LEASES, THE CONSIDERATION FOR THE PORT IS WE GET A SHORTER TERM LEASE, WHICH FORCES US OR AT LEAST GIVES US A CHANCE TO GET TO THE TABLE, RENEGOTIATE SOMETHING.
AND I'M, I'M WITH YOU BECAUSE, UM, AS A BUSINESSMAN, UM, THIS IS NOT THE WAY YOU'D LIKE TO DO THIS, RIGHT? BECAUSE WE ARE SITTING HERE ASKING, BEING ASKED TO ASSIGN A LEASE, UH, TO A COMPANY THAT IS SAYING WE WANT TO HAVE A BETTER LEASE.
AND USUALLY THAT DOESN'T MEAN IN OUR FAVOR.
AND SO I, I FEEL LIKE WE SHOULD PUT THAT ON THE TABLE BECAUSE, YOU KNOW, HERE AGAIN, I'M I'M LIKE YOU, I THINK THIS IS PROBABLY THE BEST THING FOR GALVESTON OVERALL TO DO THIS.
BUT I MEAN, HERE AGAIN, WE, WE WANNA MAKE SURE THAT WHEN, WHEN IT DOES COME TIME FOR A NEW LEASE TO BE, UM, NEGOTIATED, UM, THAT, YOU KNOW, WE ARE NOT IN BACK AGAINST THE LAW, RIGHT? BECAUSE WE'RE GONNA, WE'RE GONNA ASSIGN THIS LEASE AND UM, YOU KNOW, THEN WE'RE GONNA BE DEALING WITH SOMEBODY THAT WE REALLY DON'T KNOW.
AND, AND BELIEVE ME, TONY AND I HAVE TRIED TO DRAG INFORMATION OUT OF THEM TRYING TO GET MORE INFORMATION THAN WE'VE HAD.
UH, BUT I MEAN, I THINK THAT WE JUST NEED TO BE AWARE THAT, AND I THINK WE ARE, THAT, YOU KNOW, WE'RE GONNA ASSIGN A LEASE TO A COMPANY THAT, YOU KNOW, UNDER THE CIRCUMSTANCES THEY COULD JUST RIDE THIS LEASE OUT.
IT'S NOT GONNA BE IN THEIR BENEFIT TO DO THAT.
BECAUSE IF THEY ARE AS BIG A PLAYER AS IT LOOKS LIKE THEY'RE GONNA BE, THEY'RE NOT GONNA LIKE THESE TERMS BECAUSE WE HAVE THOSE UPPER LIMITS THAT WE HAVE PARTICIPATION IN THE RENTS.
SO I THINK THAT WE, YOU KNOW, BE AWARE THAT WE'LL, YOU KNOW, WE WE'RE GOING TO, WE'VE HAD THESE CONVERSATIONS WITH THEM AND I, I'VE SAT DOWN IN FRONT OF 'EM AND SAID, YOU KNOW, WHY WOULD I DO THIS? YOU KNOW? WELL, AND THAT'S AGAIN, I DON'T, YOU KNOW, THE LEASE IS WHAT THE LEASE IS AND WHAT IT SAYS.
BUT I'M JUST THINKING AS WE, AS WE DEVELOP, MOST OF OUR LEASES, LIKE I'VE TALKED ABOUT BEFORE, ARE THE GENERATIONAL, I MEAN, THEY SAID YOU MAKE A MISTAKE AND YOU CORRECT THE TWO YEARS FROM NOW.
SO BUILDING SOME FLEXIBILITY AS WE DO THESE THINGS IN THE FUTURE, THAT IF THEY WANT AN ASSIGNMENT, THAT'S GREAT, BUT WE'RE GONNA CHOP OFF SOME OF THE TERM OF THE LEASE TO GIVE US SHORTER, SHORTER STICK TO PLAY WITH.
WELL, WE KNOW THAT THEY'RE LOOKING FOR A LONG, LONG TERM.
YOU KNOW, AS MUCH AS 80 YEARS THAT KIND OF LEASE IS WHAT THEY, THEY BROUGHT THAT HE'LL BE AROUND HONEY, HE MIGHT BE AROUND, BUT
'CAUSE I'VE BEEN THROUGH ONE OF THESE FISCAL, I THINK IS WHAT THEY, THEY CALL IT WHERE, YOU KNOW, THEY, IT'S FOREIGN COMPANY HAS TO BE APPROVED AND IT CAN TAKE UP TO A YEAR.
BUT I THINK THAT THEY'VE BEEN IN THIS PROCESS A LOT LONGER THAN PROBABLY WE'RE AWARE OF TOO.
BUT, UM, SO THOSE ARE JUST SOME POINTS.
I THINK AS WE LOOK DOWN THE ROAD.
UM, I THINK MAYOR BROWN HAD SOMETHING.
WELL, JUST, I WANT TO CLARIFY FROM MY SIDE, CLARIFY.
UH, IF WE CAN'T WORK OUT A NEW LEASE WITH HIM OR IT GOES PAST THE 60 DAYS, THEY JUST ARE GOING TO RUN WITH LEASE THAT IS CURRENTLY IN PLACE OVER THERE WITH
[00:10:01]
NO PROPER.THERE IS A MARCH 20, MARCH, 2026 DATE IN THERE BY WHICH THEY HAVE TO HAVE COMPLETED THE TRANSACTION, A NEW LEASE OR THEY HAVE TO, EXCUSE ME, THEY HAVE TO HAVE CLOSED THE TRANSACTION WITH THE, YOU HAVE TO GET THE ASSIGNMENT FROM NORTH COPY OR ELSE THIS IS NO VOID.
WHEN YOU SAY, BOY, WHAT DOES THAT MEAN? I KNOW WHAT BOY MEANS.
THE CONSENT IS ONLY GOOD UNTIL MARCH OF NEXT YEAR.
AND IF THEY DON'T GET SECURE THE ASSIGNMENT AND CLOSE THEIR TRANSACTION BY MARCH OF NEXT YEAR, IT'S NO LONGER EFFECTIVE, THEY WOULD'VE TO GET ANOTHER ONE.
THE GULF COPPER WOULD THEN THE CURRENT PRAYERS OF GULF COPPER STEP BACK INTO WHATEVER AGREEMENTS HAVE BEEN MADE.
DO WE KNOW IF, UH, ANY, IF THEY'VE BEEN AWARDED IN COMPLEX? I UNDERSTAND.
UM, I KNOW THAT THERE'S STILL A LOT OF CONVERSATION IN WASHINGTON AND I'VE GOT OUR, OUR GUYS IN WASHINGTON KEEPING OUR, KEEPING THEIR EYES ON THIS TO MAKE SURE THAT, UH, WHAT THE, THE THING THAT HIT ME WHEN I, WHEN WE STARTED HAVING A CONVERSATION, THERE'S A LOT OF COMPETITION IN WASHINGTON FOR THIS BUSINESS, AND THERE'S SEVERAL US COMPANIES THAT ARE IN THAT WERE MENTIONED.
UM, DAVY WAS NOT MENTIONED IN WHAT WE SAW, WHAT I, WHAT THEY GATHER FROM INFORMATION PRESS RELEASES, THINGS THAT WERE SAID IN WASHINGTON.
BUT THERE IS AN AWFUL LOT OF MONEY TO, THERE'S A LOT OF MONEY THAT, UH, IN, IN THEORY COULD SATISFY A LOT OF DIFFERENT COMPANIES.
ANY FURTHER DISCUSSION? CAN I ASK ABOUT THE, UM, THE COMPANIES YOU SAID ARE AMERICAN COMPANIES, ARE THEY BUILDING WITH THE CONCEPT OF BUILDING HERE IN THE UNITED STATES OR THEY BE BUILDING 'EM ANYWHERE ELSE BUT STILL BE AN AMERICAN COMPANY, DO YOU KNOW? YEAH, I, I THINK THESE AMERICAN COMPANIES DO HAVE SOME FACILITIES OUTSIDE THE US BUT YOU KNOW, THEY'RE, THIS IS, THESE GUYS RIGHT NOW HAVE FOCUSED ON ICE BREAKERS, RIGHT? ICE BREAKERS.
IMAGINE THAT WOULD HOLD MORE WEIGHT IF THEY'RE SAYING, YEAH, IT MIGHT BE A FOREIGN COMPANY, BUT YOU'RE BUILDING HERE VERSUS FOREIGN SPECIFICALLY ICEBREAKERS THAT THESE GUYS ARE LOOKING AT, AT THIS STAGE.
I THINK VERSUS CURRENT ADMINISTRATION'S FOCUS IS YEAH.
VERSUS HAVING A, A COMPANY THAT IS UNITED STATES MADE BUT THEY'RE BUILDING IN MEXICO.
SAY, AND THAT'S WHY I SAID I THINK THAT THERE'S, THERE'S AN AWFUL LOT OF MONEY TO GO AROUND.
HAVE WE HEARD ANY TIMELINE ON DECISION MAKING THIS WHOLE ARENA? I MEAN, IS THERE ANY SIX MONTHS, TWO YEARS? UM, WELL, DAVIES HAS SAID IT'S GONNA BE 18 TO 24 MONTHS BEFORE THEY COULD BE IN BUSINESS HERE WITH, WITH ALL THE RETOOLING AND STUFF I HAVE TO DO.
BUT THE ONLY TIMEFRAME WE REALLY TALKED TO DAVIES ABOUT IS, IS IMMEDIATELY RIGHT.
THEY SAY WE IMMEDIATELY WANT TO GET THIS LEASE DONE 60 DAYS OR SO.
BUT, UH, I, I HAVE NOT SEEN, WHAT I HAVE SEEN IS THAT HAVE NOT, UM, GIVEN OUT THOSE CONTRACTS YET.
AND THERE'S TWO, TWO PIECES OF IT.
THE MAJOR PIECE OF IT IS, IS, IS THE, UM, UH, ICEBREAKERS, BUT THEN THE HUGE BIGGER PIECE TO THAT IS COAST GUARD COAST, THE COAST GUARD PICKED UP A, YOU KNOW, A LOT OF MONEY, UH, TO REVAMP THEIR FACILITIES, THEIR, THEIR SHIPS.
AND SO I THINK THAT MOST OF THESE OTHER COMPANIES WERE ORIENTED.
BUT, UM, I DON'T HAVE ALL THAT INFORMATION AND, AND WE, WE DO HAVE PAT PATROL PARTNERS, YOU KNOW, KEEPING THEIR EYES OPEN UP THERE FOR US.
I AM SENSING SOME TREPIDATION FOR YOU.
IS THAT ACCURATE? WELL, YOU KNOW, AND I, I HAD THIS CONVERSATION WITH TONY THIS MORNING.
I I THINK IT'S A GREAT DEAL, BUT I MEAN, I, I DON'T, I'M LIKE JIM, IN A WAY, I DON'T FEEL COMFORTABLE THAT WE'RE ASSIGNING A LEASE IN NOT KNOWING WHAT SIGNING AND GONNA GET IN RETURN.
UH, I DO THINK IT'S, I MEAN, I HEAR AGAIN ON THE SURFACE, IT LOOKS TO ME LIKE IT'S A GOOD DEAL FOR GALVESTON.
AND, AND, AND I WOULD SAY IT MAY NOT BE THE BEST DEAL FOR THE PORT ONLY BECAUSE IF I'M THE, IF I'M BABY, I DON'T WANT THE LEASE THAT GULF COPPER HAS, UM, BECAUSE OF THE, UH, THE, LIKE I SAID, IT'S THE RENTS THAT WE COLLECT.
BUT, YOU KNOW, FROM A, FROM A, I THINK FROM A COMMUNITY STANDPOINT, BRINGING 2000 OF THOSE HIGH PAYING JOBS IN THIS AREA,
[00:15:02]
YOU KNOW, YOU KNOW, GIVE A LITTLE BIT RIGHT? AND I THINK THIS IS JUST SOMETHING THAT WE SHOULD DO FOR THE COMMUNITY.UM, AND UH, AND HOPEFULLY, UH, IT WORKS OUT IN OUR TABLE BECAUSE YOU, I CAN PROMISE YOU THAT I'M GONNA BE AT THAT TABLE AND WANTING TO GET THE BEST DEAL I CAN FOR US, BUT SURE.
SO WE WERE, I'M JUST LOOKING AT TRYING TO READ THE NUMBERS HERE.
WE, SO WAS IT 722,000 OR 600? IS THAT THAT WHAT WE MADE FROM BOTH COPY OF THE LAST YEAR? SOMEWHERE IN THE, THAT'S SOMEWHERE IN THAT BALLPARK.
IT'S BROKEN DOWN BETWEEN, OKAY.
SO THERE'S TWO PIECES, PAY MONTHLY BASE, AND THERE'S ALSO THE, UH, THIS WAS SUPPLEMENTAL RENTAL.
SO NOM NOMINALLY BEFORE THE TEXAS, WE WERE MAKING 650,000, $600,000 A YEAR.
I ASSUME THAT'S THE WORK FROM THE TEXAS THAT HAS ESCALATED THAT.
THE VERY HIGH LEVEL ANECDOTAL THING I HAVE HEARD IS THAT 12 COPPER'S REVENUE UNTIL THE TEXAS GAME WAS PRIMARILY SERVICING THE OFFSHORE OIL MARKET AND THE DATE WHERE THAT, YOU KNOW, PERCENTAGE RENTAL DRIFTED OFF, KIND OF COINCIDES WITH THE ONSET OF FRACKING.
AND OIL HAS TO BE MUCH HIGHER THAN NOW, HIGHER THAN 63 A BARREL.
BEFORE THE BECOMES BECOMES BE ACTIVE ENOUGH.
'CAUSE WE HAD SOME FAIRLY LARGE SUMS BACK YEARS.
THEY WERE LIKE THE NUMBER ONE TENANT REVENUE WHEN THEY FIRST, YOU KNOW, WAS EARLY YEARS, JIM.
WELL, OKAY, I JUST GET, LET'S NOT JUST FINISH UP ON THAT.
SO, BUT THAT WOULD GO BACK TO 600,000 OR SO, YOU KNOW, AFTER THE TEXAS, RIGHT? THAT'S, WELL THEY'RE, THEY HAVE SOME OTHER CONTRACTS THAT THEY TALKED ABOUT, BUT I, YEAH, THEY'RE, I THINK THERE'S USING CONTRACTS RIGHT NOW, UM, FOR OTHER SHIP BUILDERS.
UM, I I, I UNDERSTOOD THAT THEY HAD JUST GOTTEN THE CONTRACT, UM, TO HELP MAKE SOME PARTS FOR, UM, SOME MOBILE SHIP BUILDERS MOBILE, ALABAMA, BECAUSE THEY, THEY DO HAVE THOSE WILL CONTINUE.
I MEAN ALL THAT, WHAT I'VE BEEN TOLD IS, IS THAT JONATHAN HA WILL CONTINUE TO OPERATE THAT DIVISION OVER THERE AND, AND THEY HAVE, THEY'VE GOT SOME CONTRACTS LATELY THAT THEY DIDN'T HAVE BEFORE BECAUSE THEY DO HAVE THE DRY DOCUMENT.
THEY DO HAVE SOME MORE FACILITY, THEY DO HAVE DRY.
SO I GUESS I'M JUST TRYING TO WEIGH THAT VERSUS WHAT THEY, WHAT WE MIGHT, WHAT MIGHT POTENTIALLY BE THE RENTS FROM OUR NEW PLAYER HERE.
WELL, YOU KNOW, THEY'VE BEEN TALKING ABOUT A BILLION DOLLAR INVESTMENT AND, AND I THINK FROM A, FROM A COURT STANDPOINT, YOU KNOW, THEY HAVE A, UM, THEY HAVE ANOTHER FACILITY IN PORT ARTHUR, WHICH, UH, GULF COPPER OWNS.
SO WE, WE ALSO NEED TO BE, I THINK, AWARE THAT THAT FACILITY IS A FACILITY THAT THEY WILL BUY RIGHT HERE.
THEY'RE TAKING AN ASSUMPTION OF THE LEASE LEASE.
SO I MEAN INVESTMENT, WHERE WOULD YOU PUT YOUR INVESTMENT? YOU KNOW, IF YOU OWNED A PROPERTY, YOU WHERE YOU OWN IT.
SO, I MEAN, I MEAN, I'M NOT, I'M NOT TRYING TO DETER US ON THAT.
I JUST FEEL AS THOUGH IT'S MY, MY JOB YEAH.
TO BRING THESE FACTS OR THESE THOUGHTS TO THE TABLE.
I'M GONNA SAY WHEN I, WHEN I BOIL IT DOWN FROM HOME, IT'S THE WORST CASE IS WE'RE DEALING WITH A BIG COMPANY.
$600,000 A YEAR IS ROUNDING NUMBERS TO THESE PEOPLE.
WORST CASE, THEY SHOW THE WHOLE DAMN THING.
THEY PAY US 600,000 A YEAR AND IT SITS THERE.
YOU, WE CAN NEGOTIATE 'EM OUT OF IT, YOU KNOW, GET THE
WE DO HAVE A FLOOR, RIGHT? YEAH.
WE HAVE THE 600,000, THE FLOOR ON THE PAGE BRANCH, LIKE I SAID, AND THIS, WE TALKED ABOUT THIS THIS MORNING TO THE WARD CASE THEY GOT THE LEASE AND DO NOTHING.
PAY US THE 600,000 AND WE LIVED THROUGH 15 YEARS OF PACE LEASE WHEN TIMES WERE TOUGH.
SO IT IS, WE'VE GOT OTHER THINGS THAT CAN OFFSET IT.
THERE'S OTHER FACTORS THAT WE'RE HEARING AND THE OTHER SIDE IS PROBABLY REAL THAT GREATER THAN THE DOWNSIDE.
YEAH, THAT'S, SO I, IT'S GOOD, GOOD UPSIDE.
PARTICULARLY AGAIN, LIKE I SAID, FOR THE COMMUNITY, OTHERS' ABOUT JOBS AND ALL THE ANCILLARY THINGS THAT GO WITH THAT.
THAT'S A, THOSE ARE GOOD, THOSE ARE GOOD JOBS.
ROGER, YOU MENTIONED ABOUT THE NEGOTIATION.
YOU MENTIONED THAT THEY PROBABLY WANT A LONG TERM LEASE.
ANYTHING ELSE THAT YOU PICKED UP THAT THEY WANNA WELL, THEY, THEY, THEY DON'T WANT TO GIVE ANYTHING THAT I ASKED FOR
THAT WAS ONE THING, WHICH I KNOW I, I WAS LOOKING FOR, YOU KNOW, TO, AND WE
[00:20:01]
TALKED ABOUT THIS, I THINK IN THIS MEETING WHERE I WOULD LIKE TO HAVE GOTTEN THE COBURG PROPERTY BACK, RIGHT.UM, AND THEN WE WOULD LIKE TO HAVE SOME ADDITIONAL PROPERTIES THAT WE COULD UTILIZE, YOU KNOW, FOR, UM, OTHER THINGS.
AND THEY, THEY'RE, THEY WANT MORE, THEY'RE SAYING THEY NEED MORE PROPERTY.
SO MORE PROPERTY, A LONGER LEASE.
AND THEN, BECAUSE WE, IF YOU REMEMBER, WE TALKED, YOU KNOW, I, MY THOUGHT PROCESS WAS I'D LIKE TO GET CONTROL OF THIS DOCK RIGHT HERE.
'CAUSE WE THINK, AND BRETT AND I HAVE TALKED ABOUT THIS, WE THINK THAT THERE'S SOME BUSINESS WE COULD USE HERE.
AND THIS IS, YOU KNOW, IN MY MIND IT'S NOT A DEAD ISSUE BECAUSE THEY'RE, IF THEY'RE NOT GOING TO USE THAT DOCK, THEN UM, WE, WE, I'D LIKE TO PUT SOMETHING IN LEASE THAT SAYS WE HAVE NEW PRICE TO USE THAT DOCK.
BECAUSE WE, BECAUSE IT COULD BE USED, I MEAN, RIGHT NOW A TEXAS DOCK TAB.
SO IF A LITTLE BIT OF WORK OR SOMETHING ON IT, JUST LAY BUSINESS THERE.
UM, SOME OTHER THINGS LIKE THAT.
REALLY, ROGER, IN THE PAST YOU'VE TALKED ABOUT TENANTS THAT WOULD POTENTIALLY BE WILLING TO HELP WITH RAIL TO, TO THAT AREA.
THIS ISN'T, THESE AREN'T THOSE GUYS RIGHT? NO, THEY DON'T REALLY NEED TO.
THEY DON'T NEED, 'CAUSE IT BEING NO.
THEY'LL BRING MOST WHAT THEY'VE TOLD US THAT MOST WOULD COME IN FROM BY LARGE.
AND THE AREA THAT THEY'RE GONNA BE USING, WHICH GOLF RIGHT NOW, IS THAT THE AREA THAT THE OTHER POTENTIAL, UH, TENANTS WOULD BE USING? OR DO YOU HAVE SOME PLACE ELSE IN MIND? NO, NO.
I MEAN, THE MAYOR AND I'VE TALKED ABOUT SOME, SOME OF THE LAND THAT THEY'RE LOOKING AT, UM, UM, WE HAVE SOME, UH, COMPANIES THAT ARE LOOKING TO, TO TRY TO PUT SOME SMALL SCALE LNG ON PELICAN ISLANDS.
SOMETHING THAT COULD BE USED JUST TO SERVICE THE CRUISE BUSINESS FOR ONE, BECAUSE THEY, THEY NEED IT.
RIGHT NOW WE'RE HAVING SOME, WE, THE, THE WAY WE'RE DOING IT AND JUST NOT VERY EFFICIENT.
UM, SO THERE ARE SOME PEOPLE THAT ARE INTERESTED IN THAT.
THERE'S OTHER PEOPLE IN
UM, AND THERE'S NOTHING, THERE'S NOTHING HAPPENING YET ON THAT OTHER THAN THE FACT THAT THEY'RE GETTING MORE AND MORE INTERESTED IN PEERS.
KIM? OUR, OUR SMALL SITE, SMALL SITE, WE EITHER, RIGHT.
IS THERE ANOTHER PLACE FOR THAT? IF THEY WANTED THAT PROPERTY AND THEY WANNA SPEND THEIR MONEY TO DRY IT OUT, CLEAN IT UP, GET IT WHERE IT'S OPENS AND USABLE, IS THERE SOMETHING WE CAN WORK WITH PORT HOUSTON ON THE OTHER SIDE? IS THAT POTENTIAL? I MEAN, THERE'S POTENTIAL, ONE OF THE THINGS THAT THEY HAD MENTIONED TO US, COULD WE CUT THAT IN HALF? IN OTHER WORDS, THE LOWER PART, YOU KNOW, THAT KIND OF PROTRUDES AT THE BOTTOM.
COULD WE JUST LEVEL THAT STRAIGHT ACROSS AND MOVE IT TO THE OTHER SIDE? I MEAN, WE CAN DO THAT IF WE, IT COULD TAKE WHAT, A COUPLE OF YEARS OR SO, I MEAN THAT'S ALL NEW PERMITTING, ALL KINDS OF STUFF WOULD HAVE TO HAPPEN ON THAT.
UM, BUT OR BUILD LEVIES HIGHER.
I'M JUST THINKING THAT'S A NATURAL SPOT FOR THAT WHOLE SECTION OF THE ISLAND OVER HERE JUST TO GO WATER TO THE ROAD.
BUT YOU GOT THAT BIG, UH, IN THE MIDDLE OF IT.
YEAH, I MEAN, I THINK SO LONG TERM, I MEAN, I'VE ALWAYS, UM, WE, WE GIVE YOU MONEY TO CLEAN IT UP.
YOU GOTTA HAVE IT BECAUSE I MEAN OBVIOUSLY WE GOT OUR OWN NEEDS, RIGHT? AND IT'S REALLY SERVICING JUST OUR CHANNEL, RIGHT.
AND, AND OUR OTHER TENANTS NEEDS.
UM, YOU KNOW, I I DO KNOW THAT AT ONE POINT IN TIME, UM, A WHILE BACK THAT, UM, PORT HOUSTON WAS TALKING ABOUT TRADING THIS LAND RIGHT UP HERE ALONG THE WATERFRONT WITH ARMY CORPS TO GIVE THEM AN ALTERNATIVE, UH, SPOILER.
'CAUSE OBVIOUSLY THIS HAS GOT SOME VALUE.
AND, AND THE ARMY CORPS HAS REALLY GOTTEN ALL TIED UP RIGHT HERE.
WE HAVE THIS PROPERTY HERE, BUT LOOK HOW MUCH OF IT'S SUBBED AND IT'S NEVER BEEN DREDGED.
AND SO YOU'D HAVE FOR SOMEBODY TO USE THAT WOULD BE PRETTY EXPENSIVE TO GET IT GOING.
I GUESS ALL ON I'M SUGGESTING IS AS WE'RE DEALING WITH OUR MASTER PLAN, I KNOW PELICAN WAS KIND OF A SKETCHY PART OF THAT.
THERE'S NOTHING IN THE IMMEDIATE PELICAN DEVELOPMENT, BUT I WOULD THINK THAT SOME MENTION OF MOVING THAT FULL SITE WHERE WE COULD BLOCK UP A BIGGER PIECE OF OUR PROPERTY TO BE USEFUL FOR ONE GENERATING THAT WAS MENTIONED.
AND, AND THEN AS A MATTER OF FACT, WE HAD, UH, A CONTRACTING COMPANY IN HERE THAT YOU GUYS APPROVED,
[00:25:01]
AND WE DID SOME SAMPLING UP THERE.AND ONE OF THE THINGS I I, I SAW HIM AT ANOTHER MEETING ONE TIME.
I SAID, WHAT, WHAT IF WE CUT THAT IN HALF? WHAT WOULD WE HAVE TO DO? I DON'T, DID DID THEY EVER COME BACK WITH ANYTHING ON THAT THREAT? THEY DID.
WE RECEIVED A DEWATERING PLAN ABOUT A WEEK AND A HALF AGO.
UH, SO WE WERE DISCUSSED INTERNALLY ABOUT THE EQUIPMENT AND THE INTERNAL MANPOWER TO START DOING THE DEWATERING.
UH, BUT IF YOU REMEMBER, WE'RE GONNA PUMP THE WATER IN THE MIDDLE, SLIP INTO THAT LOCATION FIRST.
WE'LL HAVE TO WAIT FOR THAT TO DRY OUT AGAIN.
UH, THEN WE'LL DO THE DEWATERING IN THE DITCHING.
BUT YES, WE COULD ABSOLUTELY RELOCATE OR SIGNIFICANTLY SHRINK THAT SIZE AS WE WILL BE NEEDING LESS, UH, PLACEMENT AREA DUE TO OUR SLIPS BEING FILLED.
UH, SO WE DON'T, WE, THAT'S ABOUT A HUNDRED THOUSAND CUBIC UH, METERS.
WE WON'T HAVE TO DREDGE, UM, IN THE TYPE OF CARGO AND VESSELS THAT WE CURRENTLY HANDLE.
AND I JUST SUBMITTED AN APPLICATION TO THE ARMY COURT, BUT OUR MATERIAL IN THEIR PLACEMENT AREA AT THIS TIME AROUND HOWEVER, GULF COPPER OR WHOEVER IN THAT AREA, THEY TYPICALLY NEED 300, 350,000 CUBIC YARDS DREDGED MAINTAINED FOR THE TYPE OF WORK THAT THEY HAVE.
SO WE WOULD NEED TO, YOU KNOW, ENSURE THAT WE MAINTAIN A SIGNIFICANT PLACEMENT AREA AND WORK WITH THE, UH, THE ARMY COURT MATERIAL THERE, FEDERAL, UH, PLACEMENT AREA.
AND THEN OBVIOUSLY WE WOULD HAVE SOME REQUIREMENTS IN HERE.
WITH THE TEXAS IN ANY FURTHER DISCUSSION.
QUESTION? ALL FAVOR? RAISE YOUR HAND.
UH, BEFORE WE GET TO THE, FROM THE BOARD OF TRUSTEES, LIKE TO MAKE
[F. SET DATE OF NEXT BOARD MEETING, TIME, AND LOCATION]
SOME ANNOUNCEMENTS OF SOME MEETINGS THIS WEEK, TOMORROW AT NINE 30 HERE IN THE PORT OFFICE, WE HAVE A REAL ESTATE COMMITTEE MEETING, UH, WEDNESDAY AT FOUR, BETWEEN FOUR AND 6:00 PM WE HAVE A MASTER PLAN OPEN HOUSE AT CRUISE TERMINAL 28.AND THEN, UH, THE JOINT MEETING WITH CITY COUNCIL SCHEDULED FOR AUGUST 27TH HAS BEEN CANCELED.
THE DATE OF THE NEXT BOARD MEETING IS TUESDAY, AUGUST 26TH.
MY NEXT COMMITTEE STARTING AT NINE, REGULAR MONTHLY MEETING STARTED AT 9:30 AM OR THEREAFTER.
[E. COMMENTS FROM THE BOARD OF TRUSTEES]
UH, COMMENTS FROM THE TRUSTEES SHEILA, UM, ATAND ALSO I WOULD, UM, ASK THAT WE REMEMBER IN OUR PRAYERS THE FAMILIES OF BOTH TOM SCHWANK AND ALSO SHR KENNER TO OUR HOUSE PEOPLE IN OUR COMMUNITY THAT WE'VE LOST, UH, IN THE LAST COUPLE WEEKS.
YEAH, JUST ECHO WHAT SHEILA SAID, AND I'M LOOKING FORWARD TO THE OPEN HOUSE ON, UH, WEDNESDAY.
I THINK I'VE HEARD A LOT OF CHATTER IN THE COMMUNITY ABOUT IT, SO I'M HOPING WE'LL HAVE A GOOD TURNOUT AND LOTS OF GOOD QUESTIONS AND INTERACTION.
I MEAN, THAT'S, THAT'S WHAT WE'RE TRYING TO DRIVE.
AND I THINK WHERE WE ARE IN OUR JOURNEY, I THINK THIS IS THE MASTER PLAN IS REALLY THERE'S, THERE'S A LOT OF MEAT AND A LOT OF OPPORTUNITY FOR US TO REALLY MOVE SOME, SOME REALLY COOL STUFF FORWARD.
SO WE'RE LOOKING, LOOKING FORWARD TO THAT AND THE PROCESS AS IT CONTINUES, JIM.
I'M JUST GONNA ASK ON WEDNESDAY YOUR IS PARKING OVER THERE? WE COULD PARK AT THAT AREA OVER THERE.
AND THERE'S A DOLLAR THAT GOES TO THE CITY.
I'M JUST EXCITED FOR THE JOB POTENTIAL IT'S GONNA TAKE PLACE IN GAL OVER THE NEXT COUPLE YEARS.
HOPEFULLY IT HAPPENS THE WAY WE WANT IT TO.
SO MAYOR, UM, AS WE CAN SEE, IS THE COMMUNITY PROBABLY SOLVED FROM OUR DISCUSSIONS WITH THIS ITEM? UH, IT PASSED BUT UH, THE WORK IS STILL TO GO ON WITH THIS.
SO THERE'S STILL SOME THINGS THAT NEED TO BE WORKED OUT.
UH, PERSONALLY, I HAVE GOOD FAITH IN ROGER AND HIS STAFF REPRESENT US VERY WELL DURING NEGOTIATIONS, BUT IT IS, UH, A NICE, NICE STEP FORWARD AND AS WILLIE MENTIONED, UH, PROVIDING A LOT OF JOBS TO, AND I APPRECIATE THE TRUSTEES ALL BEING HERE.