City Council

MINUTES OF THE CITY COUNCIL OF THE CITY OF GALVESTON AND WHARVES BOARD OF TRUSTEES JOINT MEETING - NOVEMBER 2, 2023 11/2/2023 - Minutes 1. DECLARATION OF A QUORUM AND CALL MEETING TO ORDER With a quorum present, the meeting was called to order at 9:00 a.m. 2. ROLL CALL City Council Members Present: Mayor Craig Brown, Mayor Pro Tem David Collins, Council Member Sharon Lewis, Council Member David Finklea, Council Member Mike Bouvier, Council Member John Listowski, and Council Member Marie Robb. Wharves Board Members Present: Chair Victor Pierson, Vice Chair Jeff Patterson, Trustee Mayor Craig Brown, Trustee Willy Gonzalez, Trustee Sheila Lidstone, Trustee Jim Yarbrough, and Trustee Richard Moore. 3. DISCUSSION ITEMS 3.A. Discussion Of A Possible Cruise Terminal At Pier 16 Port Director Rodger Rees discussed with City Council a brief background of MSC Cruises and potentially a Cruise Terminal at Pier 16. He reported that the Port has received a $42 million in grant funds from the State of Texas to begin rebuilding the infrastructure on the West End of the Port. He provided a conceptual design for Cruise Terminal 16 designed by Architects Bermello Ajamil & Partners. Discussion was held regarding the Port's selection of Hensel Phelps for the new Cruise Terminal, the timeline for bringing the contract with MSC to City Council for approval prior to the Port entering into the contract, The contract with MSC should be coming to City Council for approval in a month. 3.B. Discussion Of An Update Of The Port’s Master Plan Port Director Rodger Rees provided an update of the Port's Master Plan for the East End, Mid Port, West Port, and Pelican Island. Discussion was held regarding the construction of a fourth Cruise Terminal, the cost of constructing a new parking garage, an additional bond that will be needed and the impact on the City's bond rating, additional uses for maximizing property by adding amenities on top of the parking garage, the use of public/private partnerships for construction of amenities, looking at the highest and best uses for properties at the Port, leveraging cruise parking revenue for use on the cargo side, making decisions at the Port based on what the citizens of Galveston supports, developing or redeveloping Port property to make the area as attractive as possible for the community, the Port's generation of $22 million in cash flow over 2022 and 2023 which could be used for Port improvements, development of the internal road on Port property with the goal of getting cars off Harborside Drive, and beautification of property between 29th Street and 33rd Street in District 1. Port Director Rodger Rees suggested forming a committee for the purpose of investigating uses for the land. 3.C. Discussion Of The Status Of The USS Texas Chair Victor Pierson reported that the Port voted to move forward with locating the USS Texas at Pier 20. He advised that approvals are needed from the Corps of Engineers, the Texas General Office, and the Coast Guard, then will come back to the Port. The Battleship Texas Foundation (BTF) representatives Tony Gregory and Tom Parish reported that the lease will have an initial ten-year term with three ten-year renewal options. Initial rent payable to the  Chair Victor Pierson reported that the Port voted to move forward with locating the USS Texas at Pier 20. He advised that approvals are needed from the Corps of Engineers, the Texas General Office, and the Coast Guard, then will come back to the Port. The Battleship Texas Foundation (BTF) representatives Tony Gregory and Tom Parish reported that the lease will have an initial ten-year term with three ten-year renewal options. Initial rent payable to the Port will be not less than $240,000 per year, paid at the rate of $20,000 per month. The lease will be contingent upon BTF obtaining all necessary approvals and permits for the mooring of the Battleship Texas, and development of a parking plan for ship visitors will require Wharves Board approval. BTF will absorb the cost of construction for mooring, utilities, gangways, a ticket sales/gift shop and dredging, currently estimated to cost approximately $8 million. The State of Texas has established a reserve/contingency fund over the next five years that will reach $1,200,000. Landry's will be marketing the USS Texas. Discussion was held regarding the parking plan, what happens if BTF defaults on the lease, a traffic impact study, 4. ADJOURNMENT The meeting was adjourned at 11:16 a.m. Janelle Williams, City Secretary Date Approved: December 14, 2023