[00:00:01] >> GOOD MORNING, EVERYONE. THANK YOU FOR COMING TO THIS SPECIAL COMMISSIONERS COURT. WE'RE GOING TO CALL THE MEETING TO ORDER THIS FIRST DAY OF SEPTEMBER 2021 AT 9:00 A.M. COMMISSIONER ROLAND, WOULD YOU LEAD US IN THE INVOCATION PLEASE? >> YES, SIR. OUR FATHER WHICH ART IN HEAVEN, THE FATHER OUR LORD AND SAVIOR, JESUS CHRIST. FATHER, IT'S ONCE AGAIN THAT YOUR WEAK AND AND HUMBLE SERVANT IS STANDING HERE WITH MY MIND STATE ON YOU. LORD, THIS MORNING I JUST WOULD LOVE TO ASK YOU TO PLEASE GIVE US THE VICTORY OVER THIS COVID, CORONAVIRUS, LORD. HELP US ALSO WITH THE DIFFERENT STRANDS ON THE WAY. LORD, I PRAY THAT YOU WOULD GIVE US THE VICTORY. THIS AND OUR BLESSING I ASK IN JESUS NAME, AMEN. >> AMEN. >> DO WE HAVE ANY ANNOUNCEMENTS THIS MORNING? >> NONE FOR ME. >> COMMISSIONERS? >> I'M GOOD. >> EVERYBODY IS GOOD? ME TOO. CITIZENS' COMMENTS? >> NO CITIZENS' COMMENTS. >> OKAY. WE'LL GO RIGHT TO ITEM 1, [1. Discussion/Action to consider Resolution 42-2021, requiring executory contracts to be subject to statutory provisions regarding executory contracts for the conveyance of certain residential property. Speaker: Judge Haden / JJ Wells; Backup: 2; Cost: None.] DISCUSSION ACTION TO CONSIDER RESOLUTION 42-2021 REQUIRING EXECUTORY CONTRACTS, THE SUBJECT TO STATUTORY PROVISIONS REGARDING EXECUTORY CONTRACTS FOR THE CONVENIENCE OF CERTAIN RESIDENTIAL PROPERTY. I'LL GO AHEAD AND READ THE RESOLUTION, COMMISSIONERS, AND THEN WE'LL TRY TO BREAK THIS DOWN INTO LAYMAN'S TERMS FOR FOLKS SO THAT EVERYBODY UNDERSTANDS WHAT THIS MEANS. RESOLUTION 42- 2021, RESOLUTION OF CALL ON COUNTY COMMISSIONERS COURT WHEREAS RAPID POPULATION GROWTH IN URBAN AREAS OF TEXAS HAS LED TO THE INCREASING SUBDIVISION OF LAND IN FORMERLY RURAL AREAS TO PROVIDE AN EVER INCREASING NUMBER OF RESIDENTIAL LOTS FOR HOMES AND WHEREAS WHEN THIS SUBDIVISION IS ACCOMPLISHED THROUGH CONTRACT IN WHICH THE SELLER RETAINS THE DEED TO THE PROPERTY UNTIL THE PURCHASER HAS MADE ALL PAYMENTS KNOWN AS THE EXECUTORY CONTRACT FOR THE CONVEYANCE OF THE PROPERTY, THE PURCHASER MAY LOSE ALL EQUITY THAT THE BUYER HAS ACCUMULATED IN THE LAND BECAUSE OF A SINGLE MISPAYMENT. WHEREAS PREVIOUSLY, THE STATE RESTRICTIONS ON THE USE OF EXECUTORY CONTRACTS THAT WOULD PROTECT PURCHASERS ONLY PRESUMPTIVELY APPLY TO THE CONVEYANCE OF RESIDENTIAL LOTS OF ONE ACRE OR LESS, BUT RESIDENTIAL LOTS AS LARGE AS 20 ACRES AND FREQUENTLY BEING SOLD UNDER EXECUTORY CONTRACTS. WHEREAS IN ITS 37TH REGULAR SESSION, THE TEXAS LEGISLATURE ENACTED HB-4374, AUTHORIZING THE COMMISSIONERS COURT OF CERTAIN COUNTIES TO ADOPT AN ORDER REQUIRING CERTAIN EXECUTORY CONTRACTS TO BE SUBJECT TO STATUTORY PROVISIONS REGARDING EXECUTORY CONTRACTS OR THE CONVEYANCE OF CERTAIN RESIDENTIAL PROPERTY. WHEREAS THE CALDWELL COUNTY COMMISSIONERS COURT IS DETERMINED THAT AN ORDER AUTHORIZED BY HB-4374 WOULD BENEFIT THE COUNTY AND ITS CITIZENS BY IMPLEMENTING STATUTORY CONSUMER PROTECTION SAFEGUARDS RELATING TO THE USE OF EXECUTORY CONTRACTS INVOLVING CERTAIN RESIDENTIAL PROPERTIES. NOW THEREFORE, BE IT RESOLVED BY CALDWELL COUNTY COMMISSIONERS COURT THAT THE COMMISSIONERS COURT HEREBY ADOPTS THIS ORDER REQUIRING EXECUTORY CONTRACTS FOR THE CONVEYANCE OF LAND TO BE USED AS A RESIDENCE LOCATED IN THIS COUNTY TO BE SUBJECT TO SUB-CHAPTER D OF THE TEXAS PROPERTY CODE REGARDING EXECUTORY CONTRACTS FOR CONVEYANCE. FOR THE PURPOSE OF THIS ORDER, A, A LOT OR CONTRACT MEASURING 20 ACRES OR LESS IS PRESUMED TO BE USED OR INTENDED TO BE USED AS A RESIDENCE AND BE AN OPTION TO PURCHASE REAL PROPERTY THAT INCLUDES OR IS COMBINED OR EXECUTED CONCURRENTLY WITH THE RESIDENTIAL LEASE, TOGETHER WITH THE LEASE IS CONSIDERED TO BE A CONVEYANCE OF LAND OR TO BE USED AS RESIDENTS. IF THE TRACK DESCRIBED BY TEXAS PROPERTY CODE SECTION 5.0622 C2 CEASES TO BE USED PRIMARILY FOR AGRICULTURAL USE OR FARM, RANCH OR WILDLIFE MANAGEMENT OR TIMBER PRODUCTION USE OR ANY PART OF THE LAND IS USED AS A RESIDENCE IN EXECUTORY CONTRACT FOR THE CONVENIENCE OF THE LAND IS INCLUDED IN THIS ORDER, ANY EXECUTORY CONTRACT TO WHICH THIS ORDER APPLIES MAY NOT BE USED TO PURCHASE LAND FOR RESIDENTIAL PURPOSES UNLESS THE CONVERSION AUTHORIZED BY TEXAS PROPERTY CODE 5.081 IS REQUIRED TO [00:05:06] OCCUR NOT LATER THAN THREE YEARS AFTER THE DAY OF THE EXECUTORY CONTRACT IN IDENTITY. THIS ORDER SHALL BECOME EFFECTIVE IMMEDIATELY ORDERED THIS FIRST DAY OF SEPTEMBER 2021. J.J., YOU WANT TO BREAK THAT DOWN A LITTLE BIT IN SIMPLER TERMS, PLEASE? >> SURE. I WANT TO START OFF BY JUST DISTINGUISHING BROADLY DIFFERENT WAYS TO CONVEY A PIECE OF PROPERTY. TWO PEOPLE AGREE THAT THEY WANT TO SELL THEIR LAND, IT CAN BE DONE WITH CASH. I GIVE YOU MONEY, YOU GIVE ME THE TITLE DEED, WE'RE DONE. IT CAN BE DONE WITH A DEED OF TRUST WHERE THE TITLE IS ESSENTIALLY CONVEYED TO A TRUSTEE, A THIRD PARTY LIKE A BANK, PAYMENTS ARE MADE, THE BANK OR THE TRUSTEE HOLDS THE TITLE TO THE PROPERTY AND THE PAYMENTS ARE COMPLETED, AND THEN THE TITLE IS CONVEYED TO THE PURCHASER. EXECUTORY CONTRACTS ARE STRUCTURED IN A WAY THAT'S MORE SIMILAR TO LIKE A LEASE-TO-OWN SITUATION, WHERE THE BUYER IS MAKING PAYMENTS TO THE OWNER OF THE PROPERTY, BUT THE OWNER RETAINS THE TITLE. IT DOESN'T CONVEY IT TO ANYBODY ELSE WITH THE IDEA THAT WHEN THE PAYMENTS ARE FINALLY MADE AND IT'S FINALLY PAID OFF, AT THAT TIME, THE TITLE WOULD CONVEY TO THE PURCHASER. THESE TYPES OF ARRANGEMENTS CAN BE SUBJECT TO ABUSE AND EXPLOITATION. A LOT OF TIMES WHAT WILL HAPPEN IS IF SOMEONE MISSES A PAYMENT, EVEN A SINGLE PAYMENT, THE SELLER ESSENTIALLY HAS THE RIGHT TO FORECLOSE, KEEP THE TITLE, AND TURN AROUND AND SELL IT TO SOMEBODY ELSE WITHOUT DOING ANYTHING FOR THE PURCHASER, THE PURCHASER LOSES ALL THEIR EQUITY AND BASICALLY, NO PROTECTIONS IN A LOT OF SITUATIONS. BECAUSE OF THAT STRUCTURE AND THE WAY THAT THOSE TRANSACTIONS OCCUR, THE LEGISLATURE HAS ENACTED CERTAIN CONSUMER PROTECTION PROVISIONS THAT GO INTO THOSE TYPES OF EXECUTORY CONTRACTS. THEY ALLOW THEM TO CONTINUE. YOU CAN STILL USE EXECUTORY CONTRACTS, BUT YOU HAVE TO HAVE CERTAIN THINGS IN THERE TO PROTECT THE BUYER FROM A SITUATION WHERE THEY MAY LOSE ALL THEIR EQUITY OR OTHER THINGS MAY HAPPEN IN THAT TRANSACTION. JUST TO GIVE YOU, COMMISSIONERS AND JUDGE, AN IDEA OF SOME OF THE THINGS THAT ARE INCLUDED IN THOSE PROTECTIONS, THE BUYER GETS CERTAIN NOTICES ABOUT WHAT THEIR RIGHTS ARE. THESE CONSUMER PROTECTIONS SET OUT SOME OF THEIR LEGAL REMEDIES SO THAT THEY CAN PURSUE AGAINST THE PURCHASER THAT DOESN'T FOLLOW THESE CONSUMER PROTECTION PROVISIONS. THEY HAVE A RIGHT TO CUE THEIR DEFAULT, SO THEY'RE NOT SUBJECT TO AN IMMEDIATE FORECLOSURE OR LOSING YOUR EQUITY. AGAIN, MORE EQUITY PROTECTIONS. THESE TYPES OF CONVEYANCES ARE GOING TO BE REQUIRED TO BE TRANSLATED INTO THE BUYER'S LANGUAGE SO THAT EVERYBODY HAS A FULL UNDERSTANDING OF THE TERMS. IT REQUIRES DISCLOSURE OF CERTAIN FINANCIAL INFORMATION, TAX INFORMATION, JUST THINGS TO MAKE SURE THAT THE BUYER IS AWARE OF THE SITUATION. AS YOU MIGHT IMAGINE IN REAL ESTATE CONVEYANCES, YOU HAVE SITUATIONS WHERE PARTIES THAT MAY BE UNSOPHISTICATED OR DEALING WITH PARTIES THAT ARE VERY SOPHISTICATED ESPECIALLY WHAT'S HAPPENING HERE IN THE COUNTY HAVE PEOPLE THAT ARE BUYING LARGE TRACKS OF LAND, SUBDIVIDING THEM IN SUCH A WAY THAT THEY CAN CHEAPLY SELL THEM OFF WITHOUT HAVING TO PLOT THEM. MAYBE THEY'RE SUBJECT TO PLANNING EXEMPTIONS, 10 ACRES OR MORE, AND THEY'RE BEING SOLD TO PEOPLE WHO HAVE NEVER PURCHASED A PIECE OF PROPERTY BEFORE, MAYBE AREN'T FAMILIAR WITH THE LEGAL STRUCTURE OF THESE TYPES OF CONVEYANCES AND DON'T REALLY UNDERSTAND THE NATURE OF LEGAL PROPERTY RIGHTS THAT THEY ARE ACTUALLY PURCHASING. EXCUSE ME, I'LL REFER TO MY NOTES. THE PURPOSE OF THE ORDER, THE LEGISLATION THAT WAS PASSED IN THIS ORDER THAT WE'RE TALKING ABOUT HERE TODAY IS GOING TO ALLOW US TO EXPAND THE PRESUMPTION FOR CERTAIN TYPES OF PROPERTIES. RIGHT NOW, THE CONSUMER PROTECTION PROVISIONS THAT I MENTIONED ONLY APPLY TO CONTRACTS FOR DEED EXECUTORY CONTRACTS FOR PURCHASES OF ONE ACRE OR LESS THAT ARE GOING TO BE USED AS A RESIDENCE. OUT IN THE COUNTY, WE DON'T SEE AS MANY EXECUTORY CONTRACTS HAPPENING WITH PURCHASES THAT ARE ONE ACRE OR LESS BECAUSE THOSE ARE GENERALLY GOING TO BE PLOTTED. THEY'RE PART OF A LARGER DEVELOPMENT REGIME AND A MORE SOPHISTICATED SETUP. WHEN YOU SEE MORE OF THESE, YOU'RE GOING TO SEE THEM IN THE CONTEXT OF, AGAIN, EXEMPT PARCELS THAT ARE 10 ACRES OR MORE, BUT THE PROBLEM IS THAT THE 10-ACRE PARCELS AREN'T SUBJECT TO THE PRESUMPTIONS OF THE CONSUMER PROTECTION PROVISIONS THAT NEED TO BE INCLUDED IN THESE EXECUTORY CONTRACTS. SO PEOPLE ARE OUT THERE BUYING A 10-ACRE PIECE OF LAND, THEY'RE GOING TO USE IT AS THEIR HOUSE AND THEY MAY ENTER INTO AN EXECUTORY CONTRACT BUT THAT EXECUTORY CONTRACT MAY NOT NECESSARILY CONTAIN THESE CONSUMER PROTECTION PROVISIONS. SO WHAT THIS ORDER IS DOING IS JUST EXPANDING THAT RANGE FROM A ONE-ACRE PRESUMPTION THAT THESE PROVISIONS NEED TO BE INCLUDED TO PURCHASES OF UP TO 20 ACRES. SO IF A DEVELOPER OR A SELLER IS GOING TO BASICALLY UTILIZE THE STRUCTURE OF AN EXECUTORY CONTRACT, THEY'RE STILL GOING TO NEED TO INCLUDE THOSE CONSUMER PROTECTION PROVISIONS, EVEN THOUGH IT'S NOT A ONE-ACRE PARCEL, IT'S GOING TO GO UP TO 20 ACRES. THE IDEA IS THAT WE'RE GOING TO TRY TO PROTECT THESE CONSUMERS THAT ARE PURCHASING THESE LARGER PARCELS, THAT ARE ENTERING INTO THESE TYPES OF CONVEYANCES BY MAKING SURE THAT THEY ARE SUBJECT TO AND HAVE NOTICE OF THESE CONSUMER PROTECTION, EQUITY PROTECTION PROVISIONS THAT THE LEGISLATURE HAS ENACTED FOR THEM. >> GOOD. ANY QUESTIONS? [LAUGHTER] [00:10:01] >> DOES THIS ALSO GO IN THE CITY? >> THIS IS JUST GOING TO APPLY FOR THE COUNTY. THE LAW THAT WAS ENACTED ONLY AUTHORIZES A COUNTY TO ENACT THIS TYPE OF ORDER TO AUGMENT THE EXECUTORY CONTRACTS. >> SO THERE HAS TO ACTUALLY BE A TRANSFER OF DEED WITHIN THREE YEARS? >> RIGHT. IT'S ACTUALLY MENTIONED HERE IN THE ORDER ITSELF, SECTION 5.081, BASICALLY GIVES THE PURCHASER IN THIS TYPE OF SITUATION THE RIGHT TO CONVERT THEIR CONVEYANCE FROM AN EXECUTORY CONTRACT TO A MORE TRADITIONAL DEED OR TRUST TYPE SITUATION, WHICH INCLUDES THE ASSURANCES OF HAVING THE TITLE ACTUALLY HELD BY A THIRD PARTY AND CONVEYED WHEN THE PAYMENTS ARE MADE RATHER THAN BEING RETAINED BY THAT OWNER. >> [INAUDIBLE] OPPORTUNITY? >> RIGHT. IT GIVES THEM THE RIGHT TO PURSUE THAT AND I WOULD HAVE TO LOOK UP THE EXACT PROCEDURE, I WOULD HAVE TO LOOK AT IT AGAIN. BUT WHAT THEY CAN DO IS IF THEY FIND THEMSELVES IN A SITUATION LIKE THIS AND THEY FOR WHATEVER REASON JUST UNDERSTAND WHAT'S HAPPENING OR INFORMED, MAYBE GET INTO A TIGHT SPOT AND DON'T WANT TO DEAL WITH THIS ANYMORE, THEY HAVE THE RIGHT TO CONVERT IT INTO AN EXECUTORY CONTRACT EVEN AGAINST WHAT IF THE EXECUTORY CONTRACT ITSELF SAYS THAT YOU DON'T HAVE THAT RIGHT IN THE AGREEMENT ITSELF, THIS LEGISLATION WOULD SUPERSEDE THAT AND JUST ENSURE THAT PEOPLE HAVE THAT ABILITY TOO. IT CAN'T BE CONTRACTED AWAY AT THAT POINT. >> THIS DOESN'T HAVE ANY LANGUAGE AFFECTING OR CONCERNING THE ABILITY OF SOMEONE TO DO MULTIPLE EXECUTORY CONTRACTS WITHOUT [INAUDIBLE] >> I'D HAVE TO LOOK MORE CLOSELY INTO WHAT THE MORTGAGE REQUIREMENTS ARE. SOME OF THOSE DEAL WITH FEDERAL STATUTES AND SO IT'S HARD FOR ME TO SAY OFF THE TOP OF MY HEAD. GENERALLY, THE WAY THAT THESE ARE STRUCTURED IS IT'S ESSENTIALLY OWNER FINANCING. THEY ARE BASICALLY TAKING THE PAYMENTS. THERE'S NOT REALLY A LUMP SUM THAT GOES THROUGH IN THE SAME WAY. YOU MIGHT HAVE A MORTGAGE OR SOMETHING LIKE THAT. IT MAY NOT NECESSARILY QUALIFY AS WHAT WE WOULD THINK OF AS A MORTGAGE WITH A LEAN BEING ATTACHED ON THE PROPERTY, BECAUSE THE TITLE IS RETAINED BY THE OWNER, THERE IS NO REQUIREMENT FOR THEM TO BASICALLY PLACE A LIEN ON THE PROPERTY BECAUSE THEY STILL HAVE IT. IN THE SENSE OF A MORTGAGE, THE BANK OR WHOEVER HAS THAT LOAN WILL BE ABLE TO PLACE A LIEN ON THE PROPERTY TO TRY TO FORECLOSE ON IT, BUT I THINK THAT BECAUSE THESE TYPES OF CONVEYANCES ARE STRUCTURED A LITTLE BIT DIFFERENTLY, IT MAY NOT NECESSARILY IMPLICATE THE MORTGAGE LAWS THAT ARE AT THE FEDERAL LEVEL, BUT I WOULD HAVE TO DO MORE RESEARCH TO ANSWER THAT MORE THOROUGHLY. >> ALSO COMMISSIONER, EVEN IF HE DID, THE PRACTICE IS THESE GUYS HAVE MULTIPLE CORPORATIONS. ONCE THEY REACH THE MAGIC NUMBER OF TRANSACTIONS, THEY JUST FORM A NEW CORPORATION AND DO IT UNDER ANOTHER ENTITY. [NOISE] >> JUST TO PIGGYBACK ON THAT, JUDGE, THERE ARE LOTS OF TRANSACTIONS HAPPENING IN THE COUNTY RIGHT NOW. A LOT OF LAND SALES OCCURRING, A LOT OF SUBDIVISIONS OCCURRING, AND THEY'RE BEING DONE IN A VARIETY OF WAYS. THERE ARE A LOT OF THEM FOR CASH, YOU'VE GOT TRADITIONAL STUFF AND THERE'S ALWAYS GOING TO BE PEOPLE THAT ARE TRYING TO GET AS MUCH AS THEY CAN FROM THE PEOPLE THAT THEY'RE SELLING TO OR BUYING FROM. THIS IS JUST TO NARROW DOWN TO THE SITUATION. IT'S JUST WHERE EXECUTORY CONTRACTS ARE GOING TO BE USED ANYWAY. WE'RE NOT REQUIRING ANYONE TO USE THEM. WE'RE NOT PREVENTING ANYONE FROM USING THEM. THIS IS SOLELY TO JUST PROTECT THE PEOPLE THAT ARE OUT THERE MAKING THESE PURCHASES THAT MAYBE DON'T UNDERSTAND, AGAIN, THE COMPLEXITIES, THE LEGAL REALITY, THE RIGHTS THAT YOU'RE GETTING, THE WAY THESE TRANSACTIONS ARE STRUCTURED, AND THE WAY THAT THEY CAN BE SUBJECT TO BASICALLY LOSING THEIR EQUITY AT A MOMENT'S NOTICE JUST BECAUSE OF A SINGLE MISPAYMENT. AS AN EXAMPLE, IN A TRADITIONAL MORTGAGE DEED OF TRUST TYPE SITUATION, YOU WOULD HAVE TO GO THROUGH A FORECLOSURE PROCESS. THERE'S NOTICE PROVIDED, THE SALE IS VERY HIGHLY REGULATED ITSELF. THAT DOESN'T EXIST IN EXECUTORY CONTRACTS. AGAIN, IF YOU MISS A PAYMENT, IF YOUR CONTRACT SAYS THAT THEY CAN BASICALLY REVOKE IT AND SELL IT TO SOMEBODY ELSE AND THAT'S WHAT THEY'RE GOING TO DO. AS LONG AS WE HAVE SOME OF THESE PROTECTIONS IN PLACE, THERE MAY STILL BE PEOPLE OUT THERE IN THE COUNTY THAT ARE SELLING PROPERTY, MAYBE THEY SELL A 10-ACRE PARCEL, THEY USE AN EXECUTORY CONTRACT, BUT THEY DON'T INCLUDE THESE PROVISIONS, WELL, THEN THE CONSUMER THEMSELVES HAVE A ROUTE TO SEEK RELIEF FROM THE SELLER. THERE MAY BE OTHER OPPORTUNITIES THAT EVEN THE STATE OR THE DA'S OFFICE POTENTIALLY COULD LOOK INTO AND SEE IF THAT IS ANOTHER VIOLATION OF SOME KIND. IT JUST GIVES US, I THINK, SOME MORE TOOLS TO ENCOURAGE, I THINK, RESPONSIBLE DEVELOPMENT AND TRANSACTIONS HERE IN THE COUNTY. I THINK AT THE SAME TIME, IT GIVES US AN AVENUE TO HELP PROTECT SOME OF THESE CONSUMERS AND HELP CONSUMERS PROTECT THEMSELVES IN SITUATIONS THAT THEY MAY NOT EVEN KNOW THAT THEY NEED THAT PROTECTION. >> SO THAT'S A PRACTICAL IMPLICATION OF THIS LAW WITHIN THE COUNTY CONTEXT, IN OUR EFFORT TO COMPLY WITH IT. FOR INSTANCE, CASEY, WHEN SHE RECEIVES AN APPLICATION FOR A RESIDENTIAL DEVELOPMENT PERMIT OR [00:15:03] A SEPARATE PERMIT CALLS FOR A [INAUDIBLE] ALONG WITH THAT APPLICATION SO THAT WE CAN MAKE SURE IT'S A LEGAL PLOT. SHE SEES THAT IT'S AN EXECUTORY CONTRACT DONE AFTER SEPTEMBER 1ST, OF THIS DATE [INAUDIBLE] >> THAT'S SOMETHING THAT WE'RE GOING TO HAVE TO FIGURE OUT AS WE GO THROUGH THE PROCESS. CASEY COULD PROBABLY TALK A LITTLE BIT MORE IN DETAIL ABOUT SOME OF THE PLANS THAT ARE IN PLACE. I KNOW THAT WITH THE CREATION OF THE ENVIRONMENTAL UNIT THAT WE'VE BEEN TALKING ABOUT AND THE COORDINATION THAT THAT'S GOING TO REQUIRE BETWEEN THE PERMITTING AND SANITATION DEPARTMENT, WE'VE TALKED ABOUT WAYS THAT WE CAN FLAG THINGS THAT ARE MAYBE FISHY OR THAT RAISE CERTAIN CONCERNS THAT WE CAN DIG A LITTLE BIT DEEPER INTO, BUT THE ACTUAL NITTY-GRITTY FOR HOW THAT COOPERATION IS GOING TO OCCUR IS NOT SOMETHING THAT WE'VE HAMMERED OUT THE DETAILS ON. BETWEEN THE DEPARTMENTS, WE HAVE ACKNOWLEDGED AND HAVE HAD DISCUSSIONS ABOUT, "HEY, WE NEED TO BE ABLE TO FIGURE THIS STUFF OUT AND FLAG THESE AND GO AFTER THEM," AND SO THAT IS DEFINITELY BEING CONTEMPLATED. THE ACTUAL PROCEDURE BY WHICH WE'RE GOING TO DO THAT IS TO BE DETERMINED, BUT I THINK THAT YOU HIT IT RIGHT ON THE HEAD WHEN YOU SAID THAT, CASEY AND HER OFFICE ARE GOING TO BE THE FRONT LINES FOR HOW WE IDENTIFY THESE THINGS. JUST AS BY WAY OF EXAMPLE, WE HAVE ONE THAT CAME INTO THE OFFICE, W2 DETAILED, AND IT'S VERY CLEARLY A CONTRACT FOR DEED TYPE OF SITUATION, BUT THE PARTIES DON'T ACTUALLY HAVE ANYTHING IN WRITING. ONE PARTY IS MAKING PAYMENTS TO THE OWNER, BUT THEY DON'T HAVE A WRITTEN CONTRACT AT ALL. THAT'S ANOTHER WEIRD LOOPHOLE THAT IS GOING TO GIVE US A TOUGH TIME. THE LAW IS GOING TO REQUIRE THAT THESE TYPES OF CONTRACTS BE IN WRITING, AND SO THAT IS GOING TO LIMIT SOME OF THE REMEDIES THAT THE PARTIES HAVE AGAINST EACH OTHER AND WE CAN CONTROL THE EXACT PRACTICES THAT THESE PEOPLE ARE DOING WHEN THEY'RE CONVEYING THE LAND BY ENACTING THIS TYPE OF LAW. WE'RE JUST TRYING TO MAKE SURE THEY STICK TO IT. >> CAN WE ESTABLISH A SYSTEM WHERE CASEY ACTUALLY REQUIRES A DEED? >> I DON'T SEE WHY NOT. >> COMMISSIONER, CAN YOU MAKE SURE YOUR MIC IS ON. [OVERLAPPING] >> SORRY, BECAUSE CASEY WOULD GET, I ASSUME, JUST A CONTRACT. >> WELL, AT THIS POINT, WHENEVER THEY APPLY FOR PERMITS AND EVERYTHING, THEY DO HAVE TO PRODUCE, WHETHER IT BE A WARRANTY DEED, VENDORS LIEN, I DO HAVE THEM PRODUCE CONTRACT FOR SALES IF THAT'S ALL THEY HAVE, BUT AT LEAST THEN WE CAN LEARN TO FLAG FROM THERE TO MONITOR THEM. >> BUT COULD WE SAY THEY HAVE TO HAVE A DEED ISSUED TO THEM? >> THAT'S A GOOD QUESTION, COMMISSIONER. I'D HAVE TO DIG A LITTLE BIT DEEPER INTO THAT ONE. ESSENTIALLY, WHAT YOU'D BE SAYING, AND CORRECT ME IF I'M WRONG, IS THAT, IF YOU'RE APPLYING FOR PERMITS, WE WOULD NOT THEN BE ISSUING A PERMANENT FOR PEOPLE THAT HAVE CONTRACTS FOR DEED. I DON'T KNOW THAT WE CAN DO THAT NECESSARILY. WE WOULD HAVE TO EXPLORE EXACTLY WHAT OUR RIGHTS ARE AS FAR AS THE COUNTY'S RIGHTS FOR ASSESSING AND WITHHOLDING PERMITS THAT PEOPLE MIGHT OTHERWISE BE ENTITLED TO. SO I'M RELUCTANT TO COMMIT TO ANYTHING ON ANY DIRECTION ON THAT, COMMISSIONER. BUT [OVERLAPPING] I KNOW THAT AS PART OF A PROCESS, WE DO GET THOSE SUBMISSIONS AND FOR INSTANCE, WHEN WE GET A CONTRACT FOR DEED, THAT'S IMMEDIATELY GOING TO BE A RED FLAG THAT WILL NEED TO MAYBE EXAMINED A LITTLE BIT CLOSER AND MAKE SURE THAT IT MEETS ALL THE REQUIREMENTS. >> THE ONLY OTHER THING I DID WANT THE COURT TO KNOW, IS THAT TRACY AND I TALKED EXTENSIVELY ABOUT THIS ON MONDAY. ONCE THE NEW ENVIRONMENTAL ENFORCEMENT DEPARTMENT IS ESTABLISHED IN OCTOBER, WE WANT TO MEET WITH THE COUNTY CLERK AND HER STAFF IN THAT DEPARTMENT TO WHERE THEY CAN ACTUALLY LEARN TO FLAG SOME OF THE STUFF TO GIVE US NOTICE AS WELL. >> WE'LL HAVE ESSENTIALLY THREE LINES OF DEFENSE IF YOU WILL. WE HAVE CASEY'S OFFICE, WE HAVE CLERK'S OFFICE, AND THEN WE HAVE THE NEW ENVIRONMENTAL ENFORCEMENT. SO THERE'LL BE THREE SETS OF EYES ON THEM. HOPEFULLY, WE'LL CATCH MOST OF THEM GOING IN. >> COMMISSION TERRY, JUST PRACTICALLY SPEAKING, THE MORE I THINK ABOUT YOUR SCENARIO THERE A LITTLE BIT, IN A SITUATION WHERE A PERSON OWNS, LET'S SAY, A 50-ACRE PARCEL OF REAL PROPERTY AND THEY ENTER INTO AN EXECUTORY CONTRACT FOR SOMEONE TO PURCHASE A PORTION OF THAT ACREAGE, BECAUSE THE TITLE HASN'T CONVEYED, IF THAT PERSON IS TRYING TO GET PERMITS, THEY'RE GOING TO NEED THE PERMITS FROM THE TITLE OWNER OF THE PROPERTY, WHICH IS STILL GOING TO BE THE BUYER. IF A PERSON WHO IS A PURCHASER UNDER AN EXECUTORY CONTRACT COMES IN, THEY'RE NOT TITLED TO THAT PROPERTY. SO I THINK THAT THE APPROPRIATE PERSON TO ACTUALLY APPLY FOR THE PERMIT IS STILL GOING TO BE THE LEGAL OWNER OF THE PROPERTY, WHICH UNDER AN EXECUTORY CONTRACT IS NOT NECESSARILY THE BUYER OR THE PERSON SEEKING THE PERMIT. SO THAT'S A SITUATION THAT I KNOW ARISES AND WILL CONTINUE TO RISE, AND THAT'S SOMETHING THAT AGAIN, WE CAN FLAG AND LOOK FOR AS WE PROCESS THESE PERMITS AND TRY TO IDENTIFY THESE EXECUTORY CONTRACTS. >> JUDGE, WE DON'T HAVE A FORMAL PUBLIC INFORMATION. [00:20:08] OUR PERSON THAT DRAFTS PRESS RELEASES AND THINGS NOW FOR THE COUNTY. [OVERLAPPING]. >> NO, WE DON'T. I NEED TO LOOK. WE MAY HAVE ENOUGH ROOM TO CREATE THAT POSITION FOR THE COUNTY. IT'S SOMETHING THAT I WOULD LIKE TO DO GOING FORWARD. WE TALKED ABOUT IT IN SOME OF THE BUDGET WORKSHOPS AND WE HAVE NOT CREATED THAT POSITION IN THE BUDGET, BUT IT WOULD BE EASY ENOUGH TO DO IT. THAT'S SOMETHING THAT WE'LL HAVE TO EXPLORE. >> JUST IN THIS SITUATION, I'D LIKE TO SEE OUR PRESS RELEASE GO OUT TO THE NEWS MEDIA. >> SURE, WE COULD DO THAT. WE COULD DO THAT ON OUR OWN AND JUST MAKE IT KNOWN. ANOTHER THOUGHT I HAD TOO, IS WHEN PEOPLE COME INTO CASEY'S OFFICE, GIVE THEM THIS INFORMATION WHEN THEY COME IN TO APPLY FOR THEIR PERMITS SO THAT THEY'RE AWARE THAT THIS SHOULD BE IN THEIR CONTRACT. IF IT'S NOT, THEY SHOULD ASK FOR IT TO BE PUT IN THERE. >> I'D LIKE TO SEE IT IN AUSTIN BUSINESS JOURNAL IF WE COULD DO THAT. BECAUSE THAT WOULD GET THE WORD OUT WITHIN THAT COMMUNITY THAT'S CUTTING THE COUNTY UP. >> YEAH, WE CAN DO THAT. WE CAN CREATE A PRESS RELEASE TO GET IT OUT THERE ON THE NEWS STATIONS. >> I THINK MAYBE TO WEIGH IN ON COMMISSIONER TERRY ABOUT THE PRESS RELEASE AND STUFF IS, WE COULD EASILY LOCALLY CONTACT ALL OF THE TITLE COMPANIES, THE SURVEYORS, THE REALTORS, AND LET THEM KNOW THAT NOT EVERYBODY IS GOING TO READ THE NEWSPAPER, NOT EVERYBODY'S GOING TO LOOK ON SOCIAL MEDIA, BUT MOST PEOPLE ARE GOING TO EITHER GO THROUGH A REALTOR TO BUY A PARCEL OF LAND THAT'S BROKEN UP INTO TEN ACRES AND EVEN THOUGH IT'S GOING TO BE A CONTRACT, THEY'RE GOING TO EITHER CONTACT A SURVEYOR BECAUSE WE WANT TO KNOW WHERE THEIR CORNERS ARE TO BUILD A FENCE. THEY MIGHT NOT CONTACT A TITLE COMPANY BECAUSE THEY'RE NOT GOING THROUGH A BANK TO FINANCE IT. SO WE COULD EASILY JUST SEND THAT OUT TO THOSE WE KNOW WHO ALL OUR LOCALS ARE. CASEY DEALS WITH THE MAJORITY OF ALL OF THOSE THAT WE DEAL WITH, AND I THINK THAT WOULD BE ANOTHER AVENUE THAT'S NOT GOING TO COST US MONEY. >> THAT WOULD BE GOOD, BUT I THINK MOST OF THE EXECUTORY CONTRACTS THAT ARE DONE IN CALDWELL COUNTY RIGHT NOW ARE DONE OUT OF THE MCDONALD'S PALETTE [LAUGHTER] >> NO. >> I HAD SET UP SHOP THERE. >> I HAD ONE CALL ME YESTERDAY AND HE WANTED ME CUT UP 10 TRACTS IN THE LAND OF 20 ACRES. HE HAD TO BUILD A ROAD. I DID NOT TALK TO HIM I SAY, DO YOU KNOW YOU CAME TO THAT. I SPENT 45 MINUTES WITH THE GENTLEMAN, AND COME TO FIND OUT HE DON'T OWN THE LAND HE BOUGHT IT ON CONTRACT. I SAID THEN YOU CAME TO NOTHING WITH IT. FORTY-FIVE MINUTES I DO THIS. I SAID YOU CAN'T DO NOTHING, YOU DON'T OWN IT. PEOPLE DON'T REALIZE THAT WE HAVE A LOT OF PEOPLE THAT ASK ABOUT CUTTING UP A TRACT OF LAND THAT THEY DON'T OWN. IT COMES DOWN TO A LONG CONVERSATION TO EXPLAIN TO PEOPLE. PEOPLE JUST DON'T KNOW THIS. I DON'T CARE WHERE WE PUT IT. THEY DON'T KNOW IT. BUT IF WE HIT THE REALTORS FIRST AND FOREMOST, BECAUSE MOST PEOPLE ALWAYS GO TO A REALTOR. >> THAT'S A REALLY GOOD POINT, COMMISSIONER, A LOT OF PEOPLE DON'T REALIZE THAT THEY MAYBE DON'T ACTUALLY OWN THE LAND UNTIL IT'S REALLY ADVERSE TO THEIR CIRCUMSTANCES. IN THAT SITUATION, AT LEAST THEY'VE COME TO UNDERSTAND THAT BEFORE THEY'RE FACING FORECLOSURE OR BEING FORCED OUT OF THEIR PROPERTY, THINKING THAT THEY HAD BEEN MAKING PAYMENTS TOWARDS OWNERSHIP, BUT IT TURNS OUT YOU MISSED ONE PAYMENT AND YOU'RE BEING EVICTED NOW. THAT'S DEFINITELY SOMETHING THAT HAPPENS QUITE A BIT [BACKGROUND] AND PEOPLE TEND TO FIND OUT THE HARD WAY WHAT THE ACTUAL STRUCTURE OF THEIR OWNERSHIP IS. THAT'S WHY I REALLY THINK THESE ARE GENERALLY PRETTY GOOD PROVISIONS FOR PEOPLE TO HAVE. >> JJ, IS THERE SOMETHING THE COUNTY COULD DO TO REQUIRE THESE DEVELOPERS TO DISCLOSE THIS? >> I WOULD HAVE TO DO RESEARCH INTO THAT QUESTION, JUDGE. I DON'T KNOW. WE DO HAVE DECENT REQUIREMENTS FROM A MODEL ORDINANCE AS FAR AS OUR DEVELOPMENT ORDINATES GOES, AS FAR AS THE SUBMITTALS THAT NEED TO BE REQUIRED WHEN PLANNING HAPPENS. ONE OF THE PROBLEMS THAT WE HAVE THOUGH, IS THAT A LOT OF THESE COME FROM EXEMPT PLATTS, EXEMPT SUBDIVISIONS THAT DON'T NECESSARILY NEED TO GO THROUGH THE PLANNING OFFICE. PEOPLE ARE COMING OUT, THEY'LL BUY A 100 ACRES, IT'LL BE 10 ACRE LOTS, AND IT'S JUST RAW LAND AND THOSE GET SOLD OFF WITHOUT REALLY NEEDING TOO MUCH ADMINISTRATIVE OVERSIGHT FROM THE COUNTRY IN SOME WAY. THOSE ARE THE SITUATIONS I THINK WHERE YOU SEE MOST OF THESE WHERE THEY'RE TRYING TO DEVELOP THIS LAND WITH AS LOW OVERHEAD AS POSSIBLE, AND THEN EXECUTE THESE CONVEYANCES IN SUCH A WAY THAT CAN MAXIMIZE THE POTENTIAL THAT THEY CAN GET FROM EACH PROPERTY. >> SINCE IT'S NOW A LAW, WE'VE ADOPTED THIS ORDER, I WONDER IF WE COULD REQUIRE DISCLOSURE OF THIS ORDER IN THOSE SITUATIONS. [00:25:05] >> IT WOULD BE PRUDENT TO INCLUDE THIS ORDER ON THE WEBSITE WHERE WE HAVE THE OTHER ORDINANCES AT A MINIMUM, AND THAT ANYWHERE AT THE SANITATION OFFICE WHERE WE HAVE THE DEVELOPMENT ORDINANCE AVAILABLE THERE OR MAYBE EVEN INCLUDING IT AS AN ADDENDUM OR AN APPENDIX TO THE DEVELOPMENT ORDINANCE ITSELF. WE SHOULD CONSIDER THAT. >> THAT WOULD BE MY FEELING AS WELL. WE HAD THE CHECKLIST FOR ALL THE OTHER PARTS OF DEVELOPMENT ORDINANCE. I DON'T SEE ANY REASON WHY THIS COULDN'T BE INCLUDED IN THE APPENDIX. I TRIED TO PUT AS MANY PLACES AS POSSIBLE. >> THAT'S GOING TO BE THE PRUDENT THING TO DO JUST SO EVERYBODY HAS NOTICE OF IT. BUT AGAIN, THE BIGGEST PROBLEM THAT WE'RE GOING TO HAVE IS THE PEOPLE THAT ARE OUT THERE EXECUTING THESE CONTRACTS. THEY'RE NOT NECESSARILY GOING TO BE DEVELOPERS IN EVERY SENSE. THEY'RE NOT NECESSARILY GOING TO BE LOOKING TO FOLLOW THE RULES OR EVEN KNOW THAT THERE ARE RULES IN EVERY SENSE. SOMEONE WHO COMES IN AND PURCHASES ONE OF THOSE 10 ACRE EXEMPT PARCELS MADE IN TURN AROUND AND TRY TO SAY, OH, SURE, YOU CAN LIVE ON THE BACK HALF OF IT, AND YOU JUST PAY ME FOR A WHILE AND YOU WILL OWN IT. THOSE ARE AGAIN, PARTICULARLY UNSOPHISTICATED TRANSACTIONS THAT ARE VERY HARD TO DETECT BECAUSE THEY DON'T COME THROUGH ANY OF THE OFFICES. OFTENTIMES THOSE CONVEYANCES AREN'T RECORDED IN THE CLERK'S OFFICE, AND SO THEY HAPPEN INVISIBLY AND ONLY WHEN THERE IS A SEPARATE VIOLATION OR SOME OTHER THING THAT HAPPENS OUT THERE AS WHEN WE ACTUALLY DISCOVER THAT THEY'RE OCCURRING IT ALL. THAT'S ANOTHER WAY THAT THE COOPERATION BETWEEN THE PERMITTING AND THE ENVIRONMENTAL UNIT IS GOING TO REALLY BE CRUCIAL AS WE UNCOVER THESE SUBDIVISIONS AND EXECUTORY CONTRACTS THAT ARE OUT THERE IN THE COUNTY. >> SURE. WHAT I'M THINKING OF MORE SO IS, AND I'M NOT GOING TO SAY ANY OF THEIR NAMES WE ALL KNOW WHO THEY ARE. THESE DEVELOPERS WHO CONSISTENTLY DO THIS PRACTICE HERE, THEY'RE THE ONES THAT I'M GOING TO MAKE SURE ARE SPECIFICALLY MADE AWARE OF THIS AND THERE FOUR, FIVE, SIX NAMES THAT WE ALL KNOW THAT WE NEED THE CONTACT AND SAY, WE WANT NUMBER 1, MAKE SURE YOU'RE AWARE OF THIS. NUMBER 2, WE WOULD LIKE TO MAKE SURE THAT YOU MAKE YOUR CUSTOMERS AWARE OF THEIR RIGHTS UNDER THIS NEW LAW. >> IT'S NOT JUST EXEMPT TRANSACTIONS. THEY DO THE PLOTTED ONE ACRE LOTS. THAT'S HOW THEY SELL TO FOLKS WHO CAN'T GET CONVENTIONAL FINANCING. >> YES, SIR. >> I WOULD ALSO LIKE TO POINT OUT JUST A PRACTICAL MATTER ON THE RESOLUTION ITSELF. ITEM NUMBER 2, THE ACREAGE THAT WE'RE TALKING ABOUT, THIS WILL APPLY TO AS UP TO 20 ACRES. THE STATUTE ITSELF DOESN'T HAVE A BRIDGE LIMIT. THAT'S SOMETHING THAT'S UP TO THE COURT TO DETERMINE IF THEY THINK 20 ACRES IS THE APPROPRIATE NUMBER OR SHOULD BE MORE, SHOULD BE LESS. THAT'S SOMETHING THAT THE COURT CAN DECIDE FOR ITSELF IN THIS ORDER. THAT'S THE NUMBER THAT I PUT IN THERE TO HAVE A PLACE FILLER, BUT THAT'S UP FOR DETERMINATION BY THE COUNCIL. >> THAT WAS GOING TO BE MY NEXT QUESTION, JJ. I KNOW THAT THE STATUTE ITSELF PUTS NO ACREAS LIMITATION ON THIS. >> I WANT TO CHIME IN A LITTLE BIT ON THAT. >> WE CAN TRY THAT WITH 20 ACRES, AND SEE. THERE ARE EXEMPTIONS FOR WITHIN THE FIRST-DEGREE IN CONSEQUENTITY YOU CAN STILL USE A CONTRACT FOR DEED PASSING TRACT OF LAND, AND THIS DOES NOT APPLY AT ALL. FOR INSTANCE, IF I WANTED TO SELL MY RANCH TO MY SON WITH THE CONTRACT FOR D, THAT CAN ABSOLUTELY DO THAT AND I'M UNDER NO OBLIGATION TO FOLLOW THIS LAW. SEEMS LIKE 20 ACRES WOULD BE A GOOD PLACE HOLDER FOR NOW TO ME. IF WE START GETTING INTO NO LIMITATION ON THIS, AND WE'RE GOING TO BE OPENING A HUGE CAN OF WORMS BECAUSE IF SOMEBODY'S PASSING A LARGE TRACT OF LAND TO A FAMILY MEMBER, THAT'S ONE THING. WHAT I GET CONCERNED ABOUT IS, COMMISSIONER, LET'S JUST SAY, FOR INSTANCE, I SELL TO YOU UNDER CONTRACT FOR DEED AND YOU SAY, "WELL, I'M NOW GOING TO FORM ON THIS ENTITY, AND NOW I'M GOING TO SUBDIVIDE IT AND SELL IT." I'M ALSO GOING TO SELL IT UNDER CONTRACT FOR DEED THAT I CAN SEE THAT SITUATION OCCURRING IF YOU GET INTO THESE LARGER TRACTS. THEN THAT'S BAD AS A VERY SLIPPERY SLOPE BECAUSE NOW I HAVE AN EXECUTORY CONTRACT WITH YOU, AND THEN WE THEN ALLOW YOU TO SUBDIVIDE THAT INTO YOUR OWN EXECUTORY CONTRACTS UNDER WHATEVER ENTITY YOU'RE RUNNING UNDER. NOW I HAVE TWO OF THOSE ON [00:30:01] THESE LARGER TRACTS AND THAT'S WHAT I GET A LITTLE CONCERNED ABOUT. HOW DO YOU THEN KEEP TRACK OF THAT SITUATION? >> IN MY EXPERIENCE OF WHAT I'VE DONE FOR 19 YEARS. TWENTY ACRES IS A REALLY GOOD NUMBER BECAUSE THIS IS WHERE YOU SEE THIS. ANYTHING ABOVE 20 ACRES, MOST PEOPLE GO TO CAPITAL FARM CREDIT. THEY GO TO A BANK BECAUSE IT'S GOING TO BE A LARGE NUMBER. I AGREE. I THINK 20 ACRES IS A GREAT STARTING POINT BECAUSE THAT'S WHERE IT'S HAPPENING. TEN AND 20 ACRES, ANYTHING ABOVE THAT, THEY'RE USUALLY GOING TO A BANK. PROBABLY 90 PERCENT OF THE TIME YOU'RE NOT GOING TO SEE ANYTHING LARGER THAN THAT. JUST UNDER CONTRACT TO BEAT, IT'S VERY RARE UNLESS IT'S MOST FAMILY, AS HE JUST STATED. TWENTY ACRES IS A REALLY GOOD NUMBER. I WANTED TO BACK UP A LITTLE BIT WHEN WE TALKED ABOUT THE THREE YEARS. THIS IS LIKE A MARRIED COUPLE GETS MARRIED, HERE'S A GOOD EXAMPLE, AND THEIR CREDIT ISN'T ALL THAT GREAT BUT AFTER THREE YEARS, I'VE DONE REALLY WELL AND THEY'RE ABLE TO GO THE BANK. INSTEAD OF PAYING THIS UNDER THIS CONTRACT DEED 20 PERCENT INTEREST, THEY CAN GO TO THAT BANK AND GET A 5 PERCENT INTEREST. THIS ALLOWS HIM TO DO THAT WHERE BEFORE THEY COULDN'T BECAUSE THEY WAS UNDER THE CONTRACT THAT THEY COULDN'T DO THAT. THAT'S A GOOD EXAMPLE, THIS IS A GREAT PROTECTION FOR PEOPLE OUT THERE THAT HAS TO START OUT THAT WAY. SOME PEOPLE STARTED A RENT A CENTER TO FURNITURE, BUT THEN EVENTUALLY THEY HAVE BUILD THEIR CREDIT. TO ME, THIS IS FABULOUS I'M EXCITED. >> GOOD. >> COMMISSIONERS, IF THERE'S NO OTHER DISCUSSION, I WOULD LOOK FOR A MOTION TO APPROVE RESOLUTION 40 TO 2021. >> CERTAINLY. >> WE HAVE A MOTION. DO WE HAVE A SECOND? >> I'LL SECOND. >> WE HAVE A MOTION AND A SECOND. ALL IN FAVOR SAY AYE. >> AYE [FOREIGN]. >> HEARING KNOWN. OPPOSE MOTION CARRIES. ITEM 2. [2. EXECUTIVE SESSION Pursuant to section 551.087 to the Texas Government Code; discussion of deliberation regarding economic development negotiations associated with Project Dynamo. Possible action may follow in open court. Speaker: Judge Haden; Backup: None; Cost: None] WE'RE GOING TO ENTER INTO EXECUTIVE SESSION PURSUANT TO SECTION 551.087 TO THE TEXAS GOVERNMENT CODE, DISCUSSION OF DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS WITH PROJECT DYNAMO. POSSIBLE ACTION MAY FOLLOW IN OPEN COURT. WE'RE ENTERING EXECUTIVE SESSION AT 9:32 AM. WE'RE GOING TO GO AHEAD AND END THE EXECUTIVE SESSION PURSUANT TO SECTION 551.087 TEXAS AS LOCAL GOVERNMENT CODE DISCUSSION OF DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS WITH PROJECT DYNAMO. NO FURTHER ACTION WILL BE TAKEN AT THIS TIME. WE'LL REOPEN COURT AT 9:48. COMMISSIONERS, ITEM 3 IS AT ADJOURNMENT DO I HAVE A MOTION TO ADJOURN. >> I'LL MAKE A MOTION TO ADJOURN. >> WE HAVE A MOTION TO AGENDA, DO WE HAVE A SECOND? >> SECOND. >> WE HAVE A MOTION AND A SECOND. ALL IN FAVOR SAY AYE. >> AYE [OVERLAPPING]. >> THOSE HERE AND NONE MOTION CARRIES. WE'RE ADJOURNED AT [NOISE] 9:48. * This transcript was compiled from uncorrected Closed Captioning.