thank you Michael okay good afternoon we're gonna bring to order the workshop meeting today of this City Commission workshop at 3 36 p.m. so we have Calderon Calderon please thank you deputy vice mayor Margaret here Commissioner Malika Commissioner Casale here vice members here vice mayor do we yes can we get a motion to allow the mayor to participate telephonically or so moved second second all in favor thank you thank you I'm here I'm here good afternoon mayor how are you I am well thank you happy happy day so we have two items on the agenda for today's workshop and city manager yes vice mayor ladies and gentlemen good afternoon so two items encompasses this afternoon's workshop meeting the first is as we committed post May 8 2026 the goal-setting session we made a offer direction for a overview of performance and activity metrics to support vision 2035 related goals and objectives so as you may recall several general categories were outlined and summarized in that endeavor and as we've recently adopted the budget for fiscal year 2026 2027 I've asked leadership of the Department of Finance to provide a very brief overview so as to connect allocation of resources to the specific goals and objectives as it relates to the general categories so I've asked interim chief financial officer Carmen Elliman to be here this afternoon to offer a brief update to that effect a general overview so that we can get to that place however in advance to that vice mayor the first item would be public comments however item 3 after that will be a presentation by urban 3 on the financial impact of land use and public policy in Dairy Beach Florida so that is actually the result of consultancy services commissioned by the Department of Development Services to outline for the commission the aggregate approach in terms of related considerations that is a geographical information systems based presentation so the application of technology you all witnessed during the connection process a little bit ago is the result of that necessity nevertheless I think it should be a productive experience this afternoon meanwhile vice mayor I would encourage you to proceed with workshop meeting item number one and that is the public comments obligation thank you yes ma'am thank you mr. Moore so the meeting is now open to public to the public any members of the public wishing to comment on the item agenda item or non agenda item come forward at this time seeing none public comment closed and so now we move on to your the presentation yes ma'am overview of performance and activity metrics to support vision 2035 related goals and objectives interim chief financial officer Carmen Aleman if you would please thank you now workshop number one number two which is Carmen's good afternoon mayor vice mayor commissioners city manager city attorney city clerk today I'd like to provide a brief update on how the city's fiscal year 2026 27 budget support the goals and objectives of vision 2035 as you all know vision 2035 five major key focus areas are economic development education environment historic preservation strategic development let's begin with economic development the strategic goals focus on advocating for economic development support promote the arts promote small businesses and entrepreneurship ownership to advance these goals the city continues working with a consultant to develop marketing strategies and tools that support the city's strategic economic development plan the creative arts school program at all school square has expanded its offerings and the success is reflected by the growth in participation and continued interest by the community these activities are bringing more people into the old school square we're also expanding our workforce housing program through our neighborhood and community services fund to offer affordable housing opportunities for the rabies workforce to strengthen our community stability we have programs such as business and rental assistance micro loans housing rehabilitation curve appeal homeowner subsidies and down payment assistance our communications department has been working hard to advance the city's cohesive design and branding consistent branding throughout the city strengthening the rapes the rabies identity we have also budgeted some street and infrastructure improvements this will incentivize more companies to come to come to our city the city the city also continues to fund freebie transportation services as well as the arts garage while supporting downtown vitality through our contribution to the downtown development authority or the dda and just as in prior years we have budgeted for business expos and career fairs let's move on to education the strategic goals for education focus on restoring the education board and the city has a legacy and partnerships the city of the city has beenäsent the city continues its shadow program giving students and recent graduates opportunities to explore municipal and connect with potential internships the city continues its shadow program giving students and recent graduates opportunities to explore municipal careers and connect with potential internships we also run an inter internship program with nearby institutions in fact the city will be receiving this coming month the partner partner award given by the palm Partner Award given by the Palm Beach State College. This award recognizes partners that support student success through internships, career development, employment opportunities, and investments in education. The city supports education through after school and youth programming, and we're also a major contributor, as you all know, for the Ray Beach Library. The city's website has information about education programs. This was one of the suggested additional actions from Vision 2035, by the way. And even though it's not in the PowerPoint, I also want to mention that the city is working on the creation of the Education Task Force and the Workforce Development Task Force as discussed in the last City Commission meeting, and I believe they are scheduled to meet on November 2nd. Moving on to environment, the city's lobbying agreement support Vision 2035's environment-focused area through state and federal advocacy for funding and legislative support for environmental priorities such as green infrastructure, tree canopy expansion, water resource protection, coastal resilience, and stormwater improvements. The city continues working towards its 28% tree canopy goal that was established back in 2020 through tree planting initiatives included in the Capital Improvement Programs, or CIP. Also, the CIP includes a new reef planting program and continued investment in dune management, sea turtle nest monitoring, and beach nourishment. And we have also added a lifeguard to the Ocean Rescue Division. All of these strengthen the city's coastal protection. The city also encourages bio-cell, bio-swell, I'm sorry my pronunciation, installation. In fact, there are bio-swells installed near parking lots and public parks. This serves to improve water quality, support aquifer recharge, and reduce stormwater runoff. And finally, let's turn to historic preservation and strategic development, which are the two final key factors from Vision 2035. The city has added a pavement preservation program for maintaining roads as part of its strategic development. And both historic preservation and strategic development will be strengthened through the addition of new positions in the development services department. And their director, Anthea Giannotes, is leading this effort. Together, all of these initiatives reflect the city's continued commitment to advancing the goals and objectives of Vision 2035 through our fiscal year 2026-27 budget. Thank you. And if there are any questions, I'll be here. Thank you. That summarizes the presentation. And again, given the interest and focus regarding goals and objectives for fiscal year, visioning, etc., it's appropriate that we can to demonstrate financial resource and allocation commitments to align in the categories. And this is a first attempt, and I envision this being part of our annual process moving forward. So with that, this is a summary in the aftermath of the budget adoption, and therefore, I appreciate everybody's time, support, and commitment to proceed as outlined. Otherwise, nothing further. Thank you. To the Commission. Commissioner Moliker? Just thank you very much. I don't have any questions, but excellent presentation. Thank you. Commissioner Cassell? So what I would say first, Carmen, thank you very much. Thank you for stepping up when our finance director departed and putting this together for us. But in reality, what I had asked for when we were talking about visioning is a plan that carries out through the years that suggests how much we should be allocating annually for what, bless you. Because the plan should survive all of us. Because the plan should survive all of us and still be working beyond us. I would have liked to have discussed this prior to the budget because all your, you know, listen, and no, I'm super happy we have those seven full-time people. But none of them are going into the, I don't think they were going into the historic part of the Development Services Department, although they'll have a hand in it. The pavement program, calling it a pavement preservation program, is nice, but it's really a street paving program. And I guess my point is that I'm super glad we're doing the economic development plan, and I see a good path forward in that way. I love what we're doing in education and, again, the chamber leading the group that I sit on, the task force, the group we're calling it until it's actually official for workforce development. I love what we're doing in education. The environmental stuff we have been doing, the reef, the dune, the beach, the trees. And so, but what I really, what I had asked for a while ago and what I'd like to see is real developed goals and objectives that carry out into the future, not after the budget, just this is what we've implemented. So we have a sense of where we're going and what we need in the future and an action plan, right, that is maybe a, like, this is what we plan on doing in the next five years and this is what we plan on doing in the next ten. Because the vision has stayed the same. I mean, if you go back to the last visioning, the things that were priorities are the same. When we do our goal setting, the priorities are all the same. Since we know that this is what everybody wants and it comes up year after year, I feel like maybe we need to have a greater plan on how we're going to continue and get there. And then, you know, we need to be able to communicate that plan as what the city is working towards. But thank you for sharing this information. That's my input. Thank you. Thank you, Commissioner. Mayor Carney, do you have any comments? No, I don't. Thank you very much for the presentation. Thank you. Thank you very much. And thank you for stepping up, you know, to get this done in the short order. So I appreciate all the work. Thank you. And Commissioner Workett. You got it. Carmen, hello and thank you for stepping up. I appreciate in the short order of all the work that you've done. I would echo some of what Julie said a second ago. I think it is important that we have a longer term strategic plan for the city. I don't know any more in the world we live in if a 10 year plan is feasible. But for me, you know, a three year plan would be something good that we could work toward and get that communicated out. Because every decision we make is like a long term decision. And the money is significant and it's big and there's a lot of pressure on our budget and every budget right now. So I think it would be good for our residents if we had a solid three year plan that we could talk about. Even if it's just the highlights of it, just so people are aware of where we're trying to go. Because you can't turn this ship on a dime here anymore. You just can't. Yes, sir. And if I may, Vice Mayor, to respond to both commentary. This is the first step in that aggregate process. So we are simply looking to do more to engender that type of environment. So for the fiscal year 2027-2028 proposed budget process, our interest would be to do what we can to connect the dots up front. So that we can have that path forward moving in this regard. So for those reasons, ladies and gentlemen, that is apt. And therefore, this is the first step in that process. So given the conclusion of the 2627 process, we thought it would be a good idea to introduce what the first steps might be in terms of an alignment. Because frankly, that hadn't been experienced before. Much of what was talked about has already been initiated. Nevertheless, a solid step in terms of alignment relative to the different categories outlined in the plan or the vision, if you will, is a continuous process moving forward. So that input is valuable and it is congruent with our efforts moving forward. So we look forward to getting us to the absolute best place productive. Thank you, Mr. Moore. Thank you. And I just want to say thank you, Carmen, for the presentation. And it, you know, shows that we are making steps in the right direction with our plan. So thank you. So we are on to workshop item number three. So while Mr. Benacozi gets set up, I will give you just a quick background. So it's been my observation over the last couple of years that when the board and the city is faced with decisions related to development, there are concerns where we're worried about residential uses coming in on commercial land use. We're worried about providing workforce housing and the same areas that could provide density or the same areas where commercial uses are. And the hard part about this conversation is that both sides are technically correct, right? They're the same thing. So I reached out to Urban Three and explained that we were faced with a lot of decisions that were raising concerns, the impacts of development decisions and the cost of infrastructure. Do we historically designate? Do we not? Things like that. So I reached out to Urban Three to provide a financial analysis for us. Joe Benacozi, I actually first met him at the University of Miami School of Architecture where he distinguished himself as an extremely talented designer. But he went on from there to Harvard University to get a master's in urban design with a concentration in real estate development. He has both public and private sector experience. He's worked for John Hancock. He's worked for the city of West Palm Beach when then Mayor Nancy Graham pulled downtown West Palm up with CityPlace and some other major planning initiatives. So he is going to provide to you sort of a story about our city, the different development patterns, land use. This is really information to just provide data for you moving forward. And then, you know, we will ultimately have a report in the end, but we want to get some initial feedback, reactions to what you're seeing. But it's better to let the whole story unfold and if you could save questions. What we found out when we sort of test ran this with staff is the questions they were asking were like on the next slide. So, but anyway, so I just welcome Joe to Delray Beach and leave it to you. Thanks, Anthea. Mayor, Commission, thank you for having me here. I'm a visual storyteller. We actually went to architecture school together, so I like showing pictures when I talk and not a lot of words. So this is going to be a lot of visual information to kind of explain how we look at cities. And also, I'm from Asheville right now. I don't know if you all know Asheville, but this is a shot of Asheville in the 80s, in the 90s, completely boarded up. And we had this attitude in Asheville that we weren't a city anymore. Asheville was one of the few cities in the entire country, actually I think it might be the only city, that paid off its obligated debt from the 1920s. We had the highest debt per capita of the entire United States. The silver lining in paying off all of that debt is that we were too poor to tear anything down. I worked for this guy's company. This is Julian Price. Julian inherited a bunch of money, and he created a for-profit real estate development company. So what we did with the money is we fixed buildings and started businesses with sort of a revolving fund to do rehab. So this is one of our buildings before, and then stripping all the metal off and making apartments. That's it after. And what we saw in Asheville is that we would get in these political discussions about what we thought cities were, and how we thought cities operated, and not understand the actual mechanics of how it operated. And it's, I love this quote from Michael Bloomberg, in God we trust but for everyone else bring the data. That here we are as real estate developers bringing information to our community. And I don't know if you all know the politics of Asheville, but apparently all developers are evil in Asheville. And we would say to them, like, somebody built your house. You know, you're not living in a bush, right? We fixed the, we made the first vegetarian restaurant. We have the nightclub that you all go to. Like, how are we evil? So what I've kind of found, and actually we worked together, Thea and I worked together in West Palm Beach. I actually bought this at a garage sale in West Palm Beach. And it's a kid's book, and it's a teacher's guide called The City, The Town, and The Country. So you see on the right is the city, on the left is the town, and off in the back is the country. This is a kid's book that we taught in Florida in third grade in 1959. So in kindergarten you learn about your house, which is what a kindergartner can get their brain around. First grade the school, second grade the neighborhood, third grade you learn about regional planning. Did you all do that in third grade? Well, no, yeah. So we've basically lost this sense of civics. We don't understand how this whole system operates. And again, this is the teacher's guide. So it's telling you as a teacher how to deal with your third graders. So it says here, while patterns vary, let me see if I can get my cursor. While patterns vary from state to state, counties are usually responsible for education, library, welfare, agriculture, etc. In studying the functions performed by your county, you will no doubt find there's a duplication of services and overlapping jurisdictions and a lack of coordination between the county and the local communities within that. Do you have that problem with Palm Beach County? And we have that problem in West Palm Beach. We're not allowed to say. Well, okay. I know that you won't. But we have that problem in West Palm Beach trying to get them to make the convention center actually work with City Place across the street. And we would say to the county, like, people will literally walk across the street. Let's not make it dangerous for them. And they thought we were on Mars. You know, it's just how do we coordinate? How do we communicate? And this is the lesson plan. So it's painfully white. It's also super misogynistic. The girls are shoved out in the hallway for some reason because girls don't need an education in the 1950s. But you've got a factory gets built. There's even more kids that go to school. So as a teacher, see how this is highlighted right here? So you ask your third graders this. Give four good reasons for building a new school. And your third graders talk about what? Equity? Everybody should have a desk, right? Maybe get another teacher so that you split the class in two so it's better education, right? That's infrastructure. So there's need. On the right-hand page, you learn about Mr. Canfield who lived next door to the Allens. He didn't want a new school. He says our taxes are too high now. If we build a new school, we'll need more teachers to run the school. We'll have to pay higher taxes. That is indeed true. When you buy stuff, it costs money, right? So you ask your third graders, why would some people have to pay higher taxes if a new school were built? And so here you see the civic exercise where third graders are talking about as the community grows, there are needs that we didn't see that we have to pay for. But there's also costs and consequences. City after city that I go to, I find this kind of tax illiteracy about how things work. So I'll go ahead and let a little cat out of the bag. I voted for the Save Our Homes Amendment in the 1990s. I was a renter. It had nothing to do to help me. Why did I vote for it? It was kind of silly, actually. It actually worked against me as a renter because it was my only illiteracy of understanding that. It just felt good, right? So in the book it says this, many children, whether urban and rural and regardless of region, are tragically limited in their knowledge of the world and their world is the space in which they live and operate. Yeah, I had a degree in architecture. I didn't have a degree in taxation. I didn't understand this stuff. So how is it we don't understand this? And if you look up the word incorporate in the Oxford American Dictionary, incorporate means to constitute a company, a city, or other organization as a legal corporation. So by law, y'all are incorporated. You're the board of directors for a corporation called Delray Beach, right? My city at $14 billion of taxable value if we went out and just made Asheville happen is seven times the value of Ted Turner. Do we expect Ted Turner to just make decisions based on what he sees on Facebook or next door? Of course not. We want to see data, right? And I expect that of my elected officials that I want to see them see the data of what's happening in my community. And I don't know if you know this about Asheville, but Asheville is the only city in the state of North Carolina that's not allowed to annex land. Thank you, state of North Carolina. You're super awesome. So those acres that we have are all that we have. This is especially true for y'all is that you're pinned in north and south. And what you do annex on the west could be a problem or could be beneficial. You don't know. So if you look at your acres as product or the way that a farmer looks at land, a farmer is going to talk in economic terms. What's the water per acre, the labor per acre, the yield, all of that, right? So this is a building that we rehabbed. We did a ground floor retail, second floor office, upper story residential. And this is an old JCPenney's department building that we renovated. And I kid you not, we did this because the city invested in the streetscape in the downtown. So thank you, city, for the garbage can, the bike rack, two benches and a street tree. Super awesome. Some people actually accused us of being subsidized. You're like, y'all didn't pay for that. It's like, you're right. $35,000, we didn't pay for it. The entire world can walk on it, but fine, it's a subsidy. We took the taxable value from $300,000 to $11 million. So what you get in taxes is 3,500% more taxes on that property. That asset that's in our community portfolio is now paying 3,500% more taxes. Go out and buy 3,500% more garbage cans. But this bias that people have, and they're just like, well, that's $11 million, Joe. That's cute. This Walmart's $20 million. So if you just take it at face value, Walmart's double the value of our building, right? 20 is bigger than 11. But it took 34 acres of our farm to make that Walmart happen versus our .2 acres. That's apples and oranges. If you want to see what we're producing per acre, apples to apples, we're producing 100 times more property taxes than Walmart, double the sales taxes. Who would have thought that a furniture store, a beauty salon, and a tattoo shop is double the tax production of a Walmart? It is. Obviously, more residents, more jobs. This is the basic thesis of how we look at real estate and how we look at cities. A cash flow model. You need to understand where your money is coming from, how it operates. And I want you to realize, like I said earlier at the start of this, we basically, no offense, but we went to a glorified art school. We're designers, right? This isn't complex math that I'm doing here. This is fifth grade division. Let me put it a different way. If I were talking to you about my truck and I said my truck gets 650 miles per tank, you know how weird that sounds as soon as I say it. And you'd be like, well, Joe, all tanks are different sizes. We don't say miles per tank. We say miles per gallon. The numbers just changed. And we should all be driving BMW as said as at 70 miles per gallon. I'm making a cute joke here. Sorry to the Prius owners. There's any in here. But this is just how we talk about things. We understand this with gasoline. Shouldn't we do this with real estate? So when you mash up a bunch of cities that we've got, for every dollar of county taxes, somebody in county single family is paying to the county and county taxes per acre. Their brother or sister in the prime city is paying about five times that. Here's the Walmart, a mall, a two-story building, three-story building, and six-story building. These are all under the high-rise threshold. It's real simple. As you stack your stories, you're stacking your dollar bills. You're just getting more layers of revenue. It's that simple. When I first started doing this 15 years ago, people used to say to me, they're like, why do you hate Walmart? Because you've seen it twice now. I use it as a joke, basically. And I'm not making this up. I presented at the International Association of Tax Assessing Officers, the assessors' conference. Is there an assessor in here? Anybody hang out with assessors? It makes a planning conference feel like Burning Man. It was like the squarest conference I've ever been to. But this guy got up at 8 in the morning and did this amazing presentation on how cheap Walmarts are. I'm sitting there watching this go down, and I'm like, this is brilliant. You've got 3,000 assessors in one meeting. I'm getting all my property tax bills lowered with one presentation. How smart is that? Now, the former public official, someone who's worked in government for five years, I was having a coronary because I'm like, why doesn't anybody care, right? I mean, we're trained to understand architecture and value. Like, why don't you want more value in your community? Now, assessors are agnostic. If it's low value, it's low value. So I went up to the microphone and I asked Mr. Terrell, I said, what's the useful life of one of your buildings? And he goes, 15 or 20 years, we designed the building to depreciate it as fast as possible. We'll build another building to depreciate it down again. So that's true. Their commitment to you is the life cycle of a cat, you know? Sorry, I'm a dog person. But this is, you know, I'm just making a joke. This is your corporation. How much value return do you want to have in your community? And it's okay if they do this. Don't hate the player. Hate the game. But understand the game if you're going to play it. That's their investment model. Cool. Okay. I would argue that people don't see it. For one, we don't talk about it this way. We don't see it in a way visually. So if I can show you your brain with your creative thought process, how you think creatively in green versus your brain stem activity in blue. Like we have the science to do this. It's an MRI, right? Can I do an economic MRI of your place? So before I get to y'all, I want to tell a quick little story about Asheville. I was the downtown director for our downtown association. And my state representative called my city a cesspool of sin. I'm not making that up. And I knew I wasn't going to win politically. But we're doing the state of the downtown address. I've got two voters out in the county for every one voter in the city, right? Politically, I understand why he was doing that. So I presented this model. This is my county, 615 square miles. I've got non-taxable and gray right here. This is Mount Mitchell Federal Park, so it's non-taxable. I got green and low value. So this is big ivy up here. And then purple is high value. So that big purple splotch right there is the Biltmore Estate. The Biltmore Estate is one house worth $100 million. When the Cecil family shows up at a council meeting, we all genuflect and thank them for their time. Very valuable property. But it's really not a fair way of looking at it because it's 180,000 square foot house sitting on 8,000 acres of land. It's the biggest gas tank, right? So rather than total value, here's value per acre. So this is potency. And let's not stop here. Here it is in 3D. So this is basically a bar chart on a map showing every single parcel in my county and its productivity and taxes. So that day at lunch, I presented this and I said, look, we're all paying six mils in county taxes, right? So drop a six mil thick blanket on this model. And I turned to the chair of the county commission. I said, Commissioner Gant, where are you getting all your money? And he goes, the big purple mountain. And I said, you're welcome. Send us a box of chocolates every once in a while. Maybe a thank you card, but don't call us a cesspool. You know, we're more than happy to produce wealth and we're all in this together. So let's do it. And also you can see our little cousin over here, Black Mountain. You can see its little downtown popping up here. I don't know if y'all have ever been to downtown Black Mountain. It's only like three stories tall and it's still killing it. You can also see the sprawl on our south side, which is all brand new, but it's not all that productive. Again, show folks the money, show what's going on, and let's have a talk about it, right? So this is basically, I'm going to go through all of your maps. I just want to explain the why and how to show that information. So first, let's start with your tax system. We've done 47 different states now. This is kind of how they all operate at the local level. When I say local, local means city and county combined. So you're in it together. You know the county commissioners work together. You're producing county taxes downtown. But basically you're mostly property tax in orange, a little bit of sales tax, and then others basically state transfers and stuff like that. You generally don't want to be over here with Louisiana, Arkansas, and Alabama where they're mostly sales tax at a local level. Sales tax is very fickle. When you think about what happens in a recession, nobody's buying a boat or a car or a TV, and you can't run a government with that kind of unpredictability. Property taxes are more stable. So for your taxes, your tax dollar, this is where it goes. This is a Delray resident property tax dollar. 51% of that goes to the public schools. The city gets about a quarter. And the county gets about, let's call it 20 cents or about 19 cents. So here's the thing. What you do in your community actually garners and grows county taxes too. If I improve downtown, I improve the county's tax base. So it behooves you to have the conversation and coordinate and just say, how can we work together on this? Your tax dollar is generated. First, you have a just value, which is your market value. Somebody would pay for the house in the marketplace. You get to save our homes cap, growth cap, to get your assessed value. And your assessed value, you then get your exemptions out of that. So if you're a disabled veteran, things like that, to get your taxable value. And then you get to control the millage rate to produce your tax bill. That's basically the steps that you have in your system to generate taxes. By the way, my staff likes to make fun of me and they have these cartoons. So here's the other thing. You've got assessed, so let's take $500,000 commercial property, $500,000 residential property. Commercial gets no exemptions. So for the taxpayer, you've got to realize that the commercial properties is where your bread and butter is made because it holds a higher value with less exemptions. So when you look at the tax rate on it, basically at the right, that's the city's tax bill that you get for commercial versus residential. So there's more to this because you all adopted, and apologies for voting on it, the Save Our Homes Amendment, which basically started with Prop 13 in California and spread across the country. 95 is when you guys got hit. Georgia just adopted theirs two years ago. It's not something we haven't seen before, but basically here's how it works. You cap the growth of commercial at 10%. You cap your residential at 3% or CPI, which is ever lower of the two. So if you divide 10 by 3, that means commercial can grow at 3 times the rate that residential can grow. So for the taxpayers in the audience who are watching this on TV, the homeowners have restricted the growth of their revenue, which is what you would expect homeowners to do. They're the voters. But what you get is this delta of this widening between CPI, which is called Consumer Price Index, or what we know as inflation. You can see how the inflation is taking off, and this is where your growth of value is. So you've capped your revenue down versus what the cost of things are. Does that make sense? So here's what we did the math for you all. This is what it looks like in Palm Beach County. This is the taxable value. This is what's going on in the marketplace. So the delta difference is the county's running a half a trillion dollar value county, but only taxing on a $360 billion commodity. So you still have to maintain that half a trillion dollar asset, if you will. So that's your gap that happens. Notice how it's widening and becoming more of a delta. So we did this at the county level. It's also a problem at this. Oh, sorry. Here's what's going to happen to Palm Beach County if the amendment passes. You see how it sort of flatlines, and the delta just grows bigger, assuming an inflation rate that's been going on for the last 10 years projecting forward. So this is becoming more of a problem. I would tell you, as a business owner, I would never restrict my revenue. Like, why would I do that? I can't control my cost of this computer, right? So it's like, let's just talk about this. But as a voter, I can see why I would do this, because it feels good. By the way, we were talking about this at the staff meeting. There's an old colonial barb that we used to say as colonists, don't tax me, don't tax thee, tax the fellow behind the tree. Like, seriously, we used to say that. We're a country of tax evaders. Cool. That's America. It's as American as apple pie. But you have to pay for stuff. So this is what's going on at the state level. You're going to see a couple trillion dollar difference statewide. This isn't going to be a problem just for Palm Beach County. This is going to be a problem all over the place. We're doing work up in St. John's County, and we're going through the same problem. Again, different chart showing the same effect, the cratering of what's going on between the difference between the market and taxable value. I know that I'm flying through a lot of charts. The intention here is to show you the content, and then hopefully this will come out as a PDF and you can sit and look at these. And they would be helpful for you to talk to your constituents. But back to this chart for a second. One of the things that's – I mentioned this earlier. This is a chart of all of your CPI since 2000 and your cap since 2000. Remember, you're taxed at CPI or 3%, which has ever lower the two. So if we go back to 2002 when Consumer Price Index went up to 7%, you taxed yourself at 3%, right? So if you take the average of the last five years and say, well, what's the average of the last five years? The inflation has been 3%. But remember, you've capped yourself back to 3% or CPI, which has ever lower the two. So if you look at the numbers here and add those – or average them out, that's 2.3%. So your revenue has only grown – if we just freeze the music and say you don't get any more developers – I need more development that comes in your community. And just like musical chairs, can you afford your community? Your revenues have only gone up 2.3%. The cost of asphalt – this is the state of Florida did this – has gone at 5%. So asphalt is moving at twice the rate that your revenue is moving in. If you fix a road, you essentially can't afford the police car or something like that. You basically got to get this money from somewhere. By the way, I looked at the average of roads in the Federal Reserve tracks it. Basically, in the last five years, the index price went from 266 to 386. So the price of asphalt over the last six years have gone up 45%. Your revenues have only gone up 2.3%. It's real simple math here. Divide 45 by 2.3. That shows you the rate of acceleration that asphalt is going at versus your revenues. So it's about 20 times the inflation of your revenue. And again, the voters are going to vote for whatever they want. That's cool. But there's a real solid physics to money. You either have it or you don't. So this is what's going on with your residential cap. It's at 2.3%. Your commercial is three times that or four times that at 10%. This is your money coming in, your revenue. When you look at your costs, the cost of a police cruiser over that same period is going over at 34%. The cost of asphalt is 45% as I just showed you. And the cost of a fire truck is 87%. So as you have to pay for things, as your equipment exhausts and you have to buy new equipment, you can't keep track of what's going on in the fire department world or the police department world or the price of asphalt. Those are different commodities and businesses taking whatever they can out of the marketplace to pay for their goods. But you all have to pay that bill. So this is something every citizen needs to be aware of. You can vote for whatever you want, but you all look at the budget and you see the things that you need and what you can't afford. So if you look at what you've given away in the Save Our Homes Amendment just annually, you have foregone $130 million of taxes that you could have collected that you don't. That's what you're paying to keep that policy in place. That $130 million translates into about seven beach re-nourishments. So this is what you can't pay because you've given that money away by not charging the appropriate taxes out of your community. Now you're about to vote on the amendment. And Anthea and I are both pessimists about this. We think the voters are going to vote for it. You know, it's not going to be good for you all. But basically here's what's going to happen. Right now you have a $20 billion asset, so you're the board of directors for a $20 billion corporation. You should be more than that. But you've got a $9 billion haircut basically, and it's going to shrink. You're going to lose $1.6 billion. You're going to lose $2.9 billion over the third year. So basically you're going to lose an additional $19 million. You're going to be doing a 14% reduction in your value over the next three years. So if your delta of your revenue stays static, it's going to have to drop with that 14%. So you could look at your budget today. You can't spend that amount next year if you keep the millage rate the same. So again, this is the reality of what you're in and what you're moving into. And just buyer beware. The citizens need to be aware of this. Back to that third grade textbook. If they're not talking about it or if they don't see it, they don't know it. So what that translates into is it takes that $130 million of loss and kicks it up to $149 million. Or we can go ahead and add another beach renourishment that you can't pay for is the cost of that amendment. And again, we're just trying to make simple graphics for you all to help communicate this because in defense of the citizens, they don't know your ACFER. They don't look at your budget. It's like they don't have time for that. They've got kids in school. They've got to get to work. People are busy. So how do you make it easy for people to see this? Back to your budget. We like to make pie charts. This is your property tax. Your income and your expense is a pie chart. So the majority of your money is coming from property taxes. We'll put that on a map. You'll note that the sales taxes are in other over here. We're not mapping the sales taxes because your state doesn't allow us to see it in a way that we can. We can only see it by zip code, which I think is tragic. It's also not as tragic as North Carolina where it's completely illegal to see anything in sales tax, which I love showing this map and I will show it until my state changes its policy. But, you know, Florida, you guys can get partial access. I would ask maybe make one of your recommendations to your municipal league is could we at least see it the way that, you know, progressive places like California, Louisiana or South Carolina. That's a joke. You know, in South Carolina, I can see what Susan's bakery makes versus Bill's barbershop. Now, I don't go and share it with everybody, but we can at least see what's happening in the community. This is another diagram of your money showing the money that comes in, where it comes from. It flows to a general fund and this is where it flows out. So your biggest ticket item, you know, is their police department followed by the fire. Those ones will be capped so that you protect those buckets when you take your revenue hit when your amendment passes. But we're putting the property tax on the map just so you can see it. So here's y'all. Here's your county. This is total value or think miles per tank. So big parcels, super value. Again, total value. Here's value per acre. And here it is in 3D. As you'd expect, it looks the way that you think it would look. You can see all the coastal value by the ocean. Here's your city in total value. Again, big parcels, super valuable, value per acre. Here it is in 3D. And we'll drill into this a little bit more. We also made your taxable, non-taxable maps. We're map nerds. We like to just give this to you so you can see it. Here's your city, 15% non-taxable. There's no judgment here, but this building doesn't pay taxes, right? It's kind of stupid to make city hall pay taxes because you're just basically harming yourself in the process. But you have to look at this as what land are you taking off the tax rolls and for what purpose does it provide a public good? Your downtown is about 6% non-taxable. My downtown in Asheville is 44% non-taxable. I think that's a little on the high side for most communities. No magic number. We're just mapping what you are. Okay, so one of the ratios I want to give you all is potency. So think of your county is 905,000 square acres, right? That's the portfolio size of your county, of Palm Beach County. And you sit about 8,000 acres inside of that. So you all are Palm Beach County taxpayers and portfolio owners, right? This is your value. So the county's worth half a trillion dollars. This is your value, your 28 billion. So the ratio of your physical footprint to your financial footprint is a 6.5 growth. That's good. You're actually moving in a positive direction as a county taxpayer. Does that make sense? Do you all follow me? Your potency. So another way of looking at it is pie charts. Same deal. So if you just divide this number, this little pie slice into that, it equals 6.5. We've seen places as low as a one-to-one, which is not good. But this shows what you're producing in county taxes, right? You're six times the potency of the average county acre. Your downtown is a portfolio piece of the city, is a 4.3. That's on the low side. We typically see downtowns at a 6. So this shows that you have room to grow. But also to be fair, I think your average is kind of messed up because of all this high potency at the beach. It raises your average value. But let's not forget that your downtown is a piece of the county, and you can barely see it down here. There it is, that little smudge. The ratio of productivity for the county is of 1 to 28. Let me re-say that. 1 to 28. So what's good for the city downtown, what's good for you what you do in the downtown is great for you all because you're getting four times the potency out of it. But the county is getting 28 times the potency. You're producing incredible revenues for the county. So it behooves the question of like, hey, do you want to help out with the streetscape or something? Because you're going to be making more money for the county in the process. You're all in it together. And it's not the county's fault. Part of this is just we tend to have different meetings. We talk about city stuff at the city commission. The county thing is out there. We don't talk about how we're in this together. Okay. Is this all too nerdy? Are we good? Okay. This is the different building types. So if you look at a Walmart, this is like a windshield survey of the individual buildings now. But basically, Walmart's pulling about, if you divide the 21 acres by its $22 million, it's $1 million per acre. If you, that's the value per acre. If you tell it it needs to have more parking, it actually liquidates the value. Adding more parking brings less value to the property. However, if you do the opposite and have less parking, it gets more potent. It's that simple. So if you require me as a developer to build more parking, there's actually a tax break for me in that process. But this is what, again, no judgment. Walmarts are what they are. These are all your Walmarts in the county pulling about $1.5 million per acre. So that's the average. I'm going to go ahead and keep that on there as a label for everything going forward. So let's look at your residential. Residential comes in different flavors. You have your low-density single-family detached. Planners call this stuff in the middle missing middle. You guys actually have some pretty solid products in that world. The row houses that you've had here, Tim Hernandez built them. It feels like a million years ago. But you actually have good, well-designed product that we don't see in a lot of places in Florida. And then there's the big stuff that happens in a downtown, the higher-density stuff. But let's start with the low-density. Again, your Walmart's $1.5 million. Your housing is averaging $4.7 million an acre. So about three and a half times a Walmart, or two and a half times a Walmart. When you look at this stuff, this is now we're getting into the missing middle stuff. So $4.7 million for this. Your row houses, the Hernandez row houses are coming in at $12.4 million an acre versus $4.7 million. Again, these are just, these are housing. This is $14.5 million an acre. This duplex here is $6.6 million an acre. One and a half times the average of single-family detached. So again, it is what it is. This is how they're producing. This is some of the multi-family stuff. And it's sort of all over the map. When you get west of Congress, they become less valuable because they're bigger parcels of land with a lot more parking. And again, you know, you get condos by the water. It's going to be potent at $24 million. But this isn't so bad in Congress Grove. Apartments at $9.2 million an acre for that right there at three stories tall. Or is that four stories? But just to kind of show some examples, this is over by the beach. We just grab this little block right here. And so you've got three different types of multi-family going on in here. The Seafields condos are pulling $13 million an acre right here. Just behind it are these things, which architecturally I wouldn't write home about. This isn't exactly spectacular, but it's productive. Let's call it $9.5 million an acre. And the Land Chi Villas is coming in at $10 million an acre right here. So just, again, just different ingredients, kind of mix this with what they're producing. And then here are the averages, single family, missing middle, and multifamily. And again, your multifamily is dragged down because of a lot of this stuff on the west. Now into your commercial. Back to the boxes. Delray Square Shopping Center. This is out at Military in Atlantic. This whole quadrant out over here. These are coming in at $1.3 million, so less than a Walmart. And your Delray Shopping Center is $2.4 million. Now remember, that's half of your production if you're single-family detached. Remember, single-family detached is averaging $4.7 million. Some more commercial stuff. And again, it really never gets big. We've got like $5.5 million. And again, it's all because of the parking that's out there. A lot of parking, cheaper buildings, lower taxes. It's that simple. But when you get into your denser stuff, like would you have thought that Shoes & More is $50 million an acre? $50. Five-zero. You know, that's incredibly potent. That's ten times the potency of single-family detached on average. Right? Salon 140 is pulling about $15 million an acre. So again, you can find these great producers in small buildings. These are tiny little buildings. But it's the context that they're in. So here's the averages of those commercial stuff. And you can see that your Main Street stuff. This is the thing that I think you have going for you is you know what it looks like. You know the potency that you can harvest here in your community. And people love it. And it's very good for you financially. Okay. Onto the mixed-use stuff. Now it gets kind of crazy. $39 million an acre for this. $46 million an acre for that. $64 million an acre for this thing. Trained as an architect, I will tell you architecturally, I've seen better. You know, I understand there's a lot of controversy architecturally. But that's a design problem. Look past that and see the potency. You know, so this is actually producing quite well for you. And you see this in lots of downtowns. But you guys are doing a pretty spectacular job in your downtown. So this is your averages for those. Your Main Street commercial, however, is your big winner compared to your mixed-use. Your big mixed-use is crushing it compared to everything else. So just to show you an example. We were talking with Anthea during the project about the controversy of that one. So this is what it used to be at $3 million per acre back when it was the gas station and everything else. And here's what it is now. So the value growth has gone from $3 million an acre to $46 million an acre. And again, putting aside the design for a second, that's tremendous growth on that property. That project is pushing out about $1.3 million in property taxes annually for revenue, which is a tremendous tax bill that it's paying. So again, it is what it is. And just for fun, we grabbed taking that parcel right here and saying, all right, it's pulling $34 million value for a big building. What if we just went ahead and just grabbed the historic block over here on the south side, the 500 block of the south side of Atlantic Avenue, and we just rubber stamped it into that site? You could actually fit four of them in there, and it would produce $92 million. This is one of these tests that we were trying to do to say, do you have to have a big building to have value? And the answer is no. You could do it with small buildings, but it's the density that you get with them. So again, it's just a lesson. You could do that. But speaking of those old buildings, there's a heritage that these buildings weren't built for a 15-year lifecycle. Now, they weren't built for a 1,000-year lifecycle either. They were built at a time when people had a sense of pride in place, and they created value for them. And this is a shot of downtown from the 40s, and those buildings are still here today. And the production that they have, $68 million an acre for this one on the corner. It's two stories, $27 million, $62 million, $50 million. And again, it's just they're producing that value, and it's a different kind of development pattern that produces you different kinds of wealth. So the big kahuna, though, is that top of the spike right there is Big Al's, is crushing it at $68 million an acre. You're probably listening. I know. Hey, Al. You deserve a cookie for that one. So, you know, I just, you find these things, again, we're just like agnostically looking at your data to see what's producing and what's not, what's happening in your community. So, this building right here, Shoes and More, that's its footprint, and this is Walmart at the same scale. Now, remember, you're the board of directors for a corporation. You have limited land. How much land do you want to blow to produce revenue? So, you would only need 5.8 of these things at $3.2 million to equal this $18 million property here. So, imagine if you did that. You had, let's say you had two, you had 12 of these buildings. So, two sides of two streets. That would be double the revenue of all that real estate, and you could have more real estate to do more development on. So, as a developer, when I blow through your real estate and do a large lot, big parking lot, big box, I'm actually getting a tax break. I produce less taxes for you because of the quality of my building. It just, again, don't hate the player, hate the game. If you tax me on property value, there's a perverse incentive for me to give you a lower value building. So, that's just kind of how it works. So, just be aware of that. The other thing to look at is your Congress area. Because you have the train station, you have an investment over there. That's an opportunity for growth and recycling, if you will. But this is Congress Groves Apartments, and this is just on the same strip. This is Congress Square. Notice how they're about the same acres. Look at the value difference. So, you basically need four and a half of the thing on the right to equal the thing on the left. Does that make sense? This is just looking at the opposite away from a value standpoint. So, when you look at your downtown, again, remember I said that you all have a history. You have a heritage. You have a design in your downtown that a lot of places would kill for that we don't see in a lot of Florida communities, particularly the new growth communities. But this is your downtown, and then just take it and flip it over into the Congress area. Look at how big those blocks are. You know, look at how much of that is non-taxable. And yet, you've got this investment of a train station over there. That's an opportunity to grow up, but it's going to be complicated. It's not the same thing as doing infill by your downtown. But that's the harder part. Think of the street pattern as your bones to fix your body. If you have your bone structures really big and open, it's a lot harder to work on those parcels. But if you do get the larger parcels, you can do more in one sweep versus the infill on the downtown. But it's an incredible opportunity over there. Okay, so this is basically all that you saw earlier. I call this the Brady Bunch slide, but it's basically your residential, low density, medium density, and high density, the averages for each of them. Your commercial, low, medium, high, and mixed use, low, medium, and high. And you can see mixed use is killing it. You guys have great examples of them that are super, super potent. Even at your low density is better than your high density commercial the way that they are right now. And then this same information, this is basically, it is a bar chart to show you the same thing. So you'll have all of these as a PDF so that you can look at them and study them and have the information. We also pasted them in your model so you could see them in your model. Okay, your land use, this is your city. And on the left is your city is a pie chart, a square pie chart. So that's how much your land right now is single family detached. About 30% of your city is single family detached. This is your civic stuff. This is your multifamily, about 17%. Most of it is on the west side and on the south. Commercial, about 15%, vacant. So vacant is your opportunity to see where you can do some rehab. This is your mixed use stuff, about 5%. Your industrial is about 4%. Your mixed use is tiny at about 0.5%. And you saw that that's your most potent stuff. So this is, you might want to increase that. And then your main street mixed use is just that few blocks of downtown. Now again, my question to you is, why not repeat that somewhere else in the community? How do you do that? What's the urban design you would do there? So when you look at the value, however, this is how it values out. A really simple way to look at the math here is divide the percentage, so 30% into 46%. So that's showing you that it's moving in a positive direction versus industrial. Industrial goes from 3.7% down to 2.8%. So you actually lose ground in the industrial. Now the industrial is a trade-off. You're getting jobs for it. So they're not going to be that valuable as buildings, but they are what they are. But here's your residential. Basically your multifamily is moving in the positive direction. Your single family is too, which is good. And your missing middle is moving even better. But remember the exemptions. So once you spring in the exemptions, your missing middle is actually moving at almost two times the rate of footprint to value. Does that make sense? So anyway, that's just something to realize. This is different charts showing you those tax breaks. You get more exemptions in your single family detached because that's where there's more homeowners. But you're seeing those exemptions through everything except for the commercial stuff, not as much. And this is just a different way of showing that trade-off. So the single family residential takes the biggest haircut in your community. I like to think this is a policy choice that sometimes hurts. And just to show it lastly, this is showing the exemption on a map. And just we show the haircut that comes off of value. So this is down by the South Canal, the Hidden Valley Canal. It took a while to find that name, by the way. But on Cormorant Road down there, this is what it looks like on the street. So here's what it looks like for just this row of houses. And so the light blue is the haircut that each of these houses takes from an exemption standpoint. So these are all basically the same house. They were all basically built the same time. They all basically have the same linear feet of frontage across this. So to think about it from the standpoint of you running a municipality and you have to go out and pave that street or remill it, the cost is going to be the same for each of these properties. But when you look at the taxes paid on each of these houses, it's wildly different. So just go ahead and think 2% on top of any of these dark blues. Some are paying a lot more than others. Does that make sense? And it's just the reality of the policies that you're stuck with. So it's not your fault. This is just how the state policies affects your pocketbook. And at the end of the day, that's the cold reality of what you guys have to pay for. I will say this because we're nerds. We wandered around the corner and found this property that's an Airbnb that has a pretty significant exemption to it. So I don't know how they're getting a homeowner's exemption and Airbnb-ing this. 77% of the year at $43,000 of revenue. I'm just asking a question. You might want to look into that. Anyway, that's a significant revenue. And they're occupied 77% of the year, so it's not a resident. Anyway, one of the things, I said this to the staff meeting earlier, it's like you have an old city and then you have a suburban quadrant down here and two quadrants on the west. So if you think of your city as four pie slices, this is a different pie up here because of its grid versus what you see to the south and the west. And, you know, the network pattern of those bones, those streets matter. This is, you can see it in the structure, right? These are going to be challenges to you. It's a different animal on the west and the south than it is in your traditional core. And that's going to be a challenge for your planning department, for your public works, and as you do redevelopment. But it's just something to be aware of. But there's a result here. So just grabbing two same size squares with Atlantic Avenue and Linton. So, same thing going from the I-95 to the intercoastal. This is what you see in your traditional city. So that's 6.8 million and you've got 21 million for the shoes and more. And then you look at Linton and you can see that, and again, this isn't to judge these buildings, but just to show you how it cash flows. So, yeah, you'd expect over here where you've got the inlet and all of this waterfront value, you're seeing that value, but it doesn't translate in anything else down here. So, again, it's just the trade-off for those development patterns. So the thing on the top, the Atlantic Avenue square, is producing double the taxes per acre that the Linton Boulevard does. And from a standpoint of this is rare land between the I-95 and the intercoastal, this is your opportunity. And you already have examples here that are doing well in Atlantic Avenue. So, back to the historic thing, what we were contracted to do. Sorry, it's taken me a while to get here. And the question is, does historic or non-historic buildings have any difference in value per square foot or per acre? So we measured it out, we pulled all the parcels, and this is how the data looks, which is kind of crazy. But you can obviously see we have one outlier right here. We had to strip that from the data pile because it just doesn't behave like anything else. Everything else is sort of clustered together more reasonably. So this is the total market value moving over time since the year 2000. And the historic is in blue, and the non-historic is in gray, and all the parcels on the street. This is averaging it out. And you can start to see they're very close to each other. But this isn't fair because the newer buildings are bigger than the older buildings. So you have to do it on a per square foot basis, and this is how it looks. So basically from 2018, your historic properties and your non-historic properties are moving at the same rate. So to say that the historic properties are bringing down the value is not fair. It's not true. It's the same as the new buildings. So as those buildings get rehabbed, they're getting more value. It's just they're moving together because it's that whole street that's got the value to it. So again, kudos to you. You have a cool street that's producing wealth. So basically this is the way the Atlantic Strip works. At the coast, you're averaging about, we're taking 500-foot chunks through the street. This is about 14 million at the beach. As you step into your downtown, it actually gets more potent, which is awesome because you can only make one beach, right? This shows you that you can actually produce this environment if you make that walkable downtown stuff. It drops down west of downtown at 3.3 million. By the train station, it drops down even more. And far west, it drops down even more. So this is an opportunity west of 95 to start rethinking that territory as well. That's fertile territory to grow up, and you can learn from yourself. One of the things that I mentioned at the staff meeting is these are some other cities. On the left is Kansas City, and on the right is Springfield, Missouri. And I joke that the city is like a fried egg. You've got a yolk, and you've got your egg white. Your downtown is your yolk. But we found multiple yolk cities, and you could do this. You can create other cores like Kansas City or Springfield. So if we're to think of Delray Beach as a big fried egg with a whole lot of egg white and not enough yolk, which is kind of what you've got going on right now, and it's sort of split by 95, you could grow another yolk down at Linton, and you could grow some yolks out on the west side too. And for those neighborhoods, they would have their own neighborhood centers, their own coffee shop, their own restaurants. You could actually start to grow that up. Okay. I'm just going to close with this one weird thing just because I love this section, which is taking the buildings off the land and only looking at the land value per acre. So this is Cheyenne, Wyoming, and you can see there's no buildings here. It's just the land value per acre. If you look here in the upper left, see everybody's blue? So you can see my cursor. That means everybody's dirt is the same value per square foot or per acre, right? Right away on the right here, if you look over here, you can see everybody's land is different from everybody across the street. So we do these models because we want to know what is the issue. Is it policy? Is it that the assessor had a bad day? Is it something baked into the computer model? What's going on where land is valued differently? So as I was presenting this at 8 in the morning, I was like, hey, what's going on here where this land is blue at 15,000? And when you cross the street in the same zoning category, it doubles to 40,000. How does land double in value when you cross the street? And the tax assessor raised her hand and just yells out, you don't understand. And I was like, what am I missing? And she goes, well, these people have more land. The more land you have, the lower the value. The mayor starts laughing. And I was like, really, I get more of your limited commodity and it's cheaper? And she goes, yeah, there's less people that can afford large tracts of land. So if there's less people in demand, we've got to give it a discount because it's supply and demand. And I was like, does it work that way with other commodities like diamonds? If I get a bigger diamond, is it cheaper? And she goes, well, no, that's different. She goes, but that's our standard. And I asked her, I said, where did the standard come from? And she's like, well, I don't know. So this fellow's got three miles of streets around the property. This person's only got 200 feet. And I'm like, what about all that infrastructure? She goes, we don't care about that because that's not how we do valuation. So the money you put in the ground, you don't ever want it back. She goes, that's not how it works. So the reason why I was at that assessor's conference, by the way, I'm not making this up. Their magazine is called Fair and Equitable. And I showed them this and I said, how is this fair and how is it equitable? To their credit, they're like, it's not. I'm like, where did the standard come from? Did Moses give this to you? Like who wrote this policy? By the way, this joke kills them at the assessor's conference. And they're like, yeah, we don't know where it came from. You need to talk to Larry. I'm not making this up. I track Larry down. This is Larry Clark right there. And I'm like, Larry, where did this standard come from? He's like, I don't know. It's probably something in agriculture. But now that you point that out, it's not fair. It's not equitable. We need to change it. It'll just take a while to get through the system. If we don't know how the system operates, we're blind to how your money is being produced. So this is your value per acre model. You can see for the dirt. There's no buildings here. You can see Linton Boulevard right here. And you can see the out parcels on Linton Boulevard are so much more valuable than the big parcels around it. You've got that same bias baked in the Palm Beach County tax system. And you can see it in your model. Now, the other thing you can see is how you've created value in your old historic pattern. And it's not just in downtown. It's in the neighborhoods north and south of Atlantic Boulevard all the way to I-95. The dirt is so much more potent than anything else in your community. So you know how to create value in your community. It's here in your model. So going back to those two squares, you can see it. So yeah, all of the stuff that's got waterfront access, super, super valuable. But it stops there. You've created waterfront value in your city without having a beachhead. So this is the dirt value per acre. Under Shoes and More, that dirt is $28 million an acre versus TJ Maxx at $700,000 and Whole Foods at $1 million an acre. So the average value per acre for the dirt in the top square is $2.6 million. The bottom square is less than half that. So anyway, if you saw these, I just want you to know why we create these. It's data that you have access to. And no one really puts it on a model to see it this way. Okay, just to close, that's all the revenue side. I just wanted to show you this. We did this project up in Orange County, Florida, where they asked us to do the cost side on top of it. So here's the revenue model for the county. You can see where Orlando is. One of the failures, you all were talking about this earlier about assets. One of the failures of municipal finance is that you all list, and that's every city and county, you list roads as assets. When I build a road and give it to you, it is a permanent liability. It's not an asset. So let me say that again. It's a liability. In my business, this computer that I'm using, my delivery van, and my office are assets. I can sell you the office, the van, and the computer. Can Delray Beach pick up its roads and sell them in Lake Worth? No. You're stuck with it forever. So that has a life cycle. The road's going to last 50 years. Pipes have different life cycles. You need to look at it as life cycle costing. So we did this for Orange County. Here's when they built all of their roads by decade. And you can see they built a lot of roads in the 1970s. So they just come back for the first rebuild in the year 2000 or 2020. And when they had to pay for that first rebuild, look what they did. They built more roads to pay for the roads they already own. And then you get your second rebuild out here, and it brings along with it the first rebuild of the 2020 roads. So this keeps going and keeps going. City after city, because most places have their growth spurt in the 70s and 60s, we're just now catching up to that first heart attack. Right? You're not alone in this. So this is what they're dealing with. And you can see this decade they're going through right now in the 2020s is going to be crushed by the next decade. That bill will come due. If you're only looking at a three year or five year window, you're missing the totality of what those costs are. And that's all that we ask is you do a full liability analysis of it. So this is what they have in Orange County. They have enough storm water to get them to Minneapolis, sewer to get them to Medora, North Dakota. Your water can get to Missoula, and their roads go to Vancouver, British Columbia. There was no meeting where somebody had a vote to build a road to Vancouver. That's just what they have now. So it's just you broke it, you bought it, you've got it. So this is their money in the system. And then putting their cost into the model. This is their cost. So we'll go ahead and sink that, put the money on top of it. And here's the side view of it if this whole county were floating in the intercoastal. And here's the money coming out of the ground for Avalon Park. Here's what it costs for Avalon Park to be there. This is the net position. Here it is in 3D. So it's kind of fun when I showed this to them and the county mayor goes, so what you're saying is we're broke. And I was like, yes. You know, it's just operationally you're moving at a very large deficit. Now, to be fair, we have to drop out the municipalities that you're not managing, like Orlando, Winter Park, Bella Vista. So you're really in the hole about $212 million. But really we should drop out the wetlands that are to the east. You should stay out of those. So really your deficit is $155 million. Now, for a three-quarter of a trillion-dollar county, this is a big number, but it's not as big as their revenues. So they use that model, and then when a development comes in, they can basically mash in the numbers. So here's the property right there, and you can see that that property is a deficit of $2,600, or let's call it $15,000 of total deficit. As you drive around your community and you see a vacant lot, you're paying for it to be there. You've made a promise. The roads, the garbage truck goes by, the police cars, you have a cost embedded in that. Do the taxes pay for that investment? If it's not, you're at a deficit. So that property is a deficit of $15,000, and you can see the hole right here. Oops. If it's kind of lit up right there. That's the hole that it's sitting in. So if a development comes in and you push in the number of units, the commercial square footage, and the restaurants, and then basically it spits out the new number, so obviously more density produces more wealth. So you can see it pop up right there, and basically it moves up to a positive $700,000. So the county can now see that it's in a hole, and it's at a deficit, so they can have a tradeoff. You can have a conversation about, is this producing wealth for our community, yes or no? And one of the questions they asked me, they said, well, what if we want to have a subsidized project? What if we want to lose money? I said, well, that's a fair question. If it meets your community values, if you want to have an art school, affordable housing, cool. But you shouldn't subsidize a dollar general, you know, unless you really want to. But you should vote on that, right? Okay. That's a lot to give you in a presentation. So just to close, what do you do from now, from here going forward? One is you've got to know your stats. Your community is a $28 billion corporation. That's what you're the board of directors for. You can sell the city if you want and go out and buy the dolphins. You can actually buy a few dolphins. It's a joke. The dolphins are worth $10 billion. But I can guarantee you that Mr. Ross knows this guy's towel bill, you know. I know that the cups in our nightclub cost $0.05 a pop. Y'all need to be literate about what the cost of a mile of road is, and your citizens should as well. You know, it's not free. Somebody's got to pay for this stuff. So your old equals new. We know that from the data. So we found no difference, really, between old and new, at least not in the last 10 years or so. Look for productive examples and replicate them. You guys are in a great position because you actually have examples like this in your community. So just find ways to make more of that happen. And you've got low-hanging fruit. Your row houses are incredibly potent. So yeah, like I said, you have these examples. This isn't hard. Your small buildings can generate huge productivity. These, you know, even Big Al's does it. And I would argue that you need to start thinking of another core or other areas to have surgery done. And just finally, just as a bonus point, you've got to start getting in your costs and understand your position and where you're leaking out. And the citizens need to be aware of this, too. So think of it this way. I can tell you what's going on with the fat content in your potato chip bag. You should understand what's going on with your development processes. A lot of people ask me, they're like, this is a lot of information. This is important, but how do I get this stuff out? One is you have this recorded. I also very, I do a lot of work with strong towns. I don't know if anybody follows strong towns. Chuck does a, has a great way of explaining all of this stuff as well. I highly recommend his books. And thanks for letting me do a lot of math here in my time. Thanks. Thank you. Thank you. Yes. This was, I think some of the best data I've received since I've been up here in four years. So thank you for this information. And I'm looking forward to the PDF so that I can unpack all that we've received in this last hour. Are there any questions from anyone? Commissioner? I just say thank you. This was very informative. I wish we had had this. What? I'm sorry. I wish we had done this, Mr. Moore, prior to our budget, because we have a lot of people inquiring, how are your costs increasing so much? What's going on? And you're showing us that our costs are increasing. And I've said this for how many years, city attorney? You know, our expenses are outpacing our revenues. And it's a concern. So thank you for that. And I, I, I, you know, in 87, we established the first of four historic districts, and then one followed in 97, and that was the Renaissance for our downtown. I appreciate what you talked about in terms of historic, but I question the district itself versus outside of the district, because we do have five districts in the city. I do think there are areas where we can create yokes. West Atlantic is, we're working on that right now. There are areas, I believe, on Congress and other areas of the city, and Linton is definitely great for us. I did have one question, though. When you talk about, when you're looking at row houses versus single family, and you're talking about the tax generation and the value, we're not considering any of the offsetting expenses, right? Because if you have a property with one family, it's a different expense to the city than if you have a row house with, say, five families. So you're just talking strictly taxable value, not offsetting expenses. Strictly taxable value, but also, you know, what I'd want to see is, what is the cost? Right. You know, it's, we've done analyses, we're actually doing analyses right now in DeKalb County, Georgia, where they want to know, you know, one of the biases is that multifamily is harder on the school system. Right. And as we do all of the analysis on a per unit basis, you find more kids in single family patch than you do in multifamily. Right. So it's like, it's not true, that bias. But it's like, we actually get a little bit of a charge off getting weird challenges. Yeah. Like, can you find the data that shows what's going on here? Yeah. But we like to visualize it, too. So I would want to know more about the costs. Obviously, when we do one of those red-black models with the costs in it, we then have that data to see it. Great. And I just, again, thank you, because, you know, our land use decisions create financial sustainability for our city long time. What we're approving generates tax revenue, but it also shifts, you know, long-term costs, and it's good to know what they are. And I want to just, my last thing, and I loved this, I've been arguing that commercial has a great value in the city. And I think our land use number, the last comp plan we had, it was 9% of our city was commercial land use. That's changed since then. But I liked the part of your presentation where you talked about the mixed use value. And I do think, I've talked to you about this, Anthea, many times, and also the city attorney, we need to look at how we can ensure that we are getting mixed use in those areas like North Federal Highway. Where we can get mixed use, we should be getting mixed use just based on this presentation. I want to thank you very much. This was extremely informative. Thanks. Thank you. Commissioner Mark? Thank you very much. Fabulous presentation. Commissioner Mark? I just wanted to say thank you very much. I've been on the other side of this equation having worked for some of the big retailers. So I get where you're going with some of the numbers. But I can't wait to get the rest of the presentation. I really want to read it. It was a lot of really good information. So thank you for pulling that together. Thank you. Thank you. Mayor, did you have any comment? Well, I'm going to agree with the Vice Mayor here. There is a lot, a lot of information we were given in. Very interesting. Learned a lot. Very, very comprehensive. That's good stuff. And I'm going to, I've taken notes as you went along here. But I'm going to have a lot more notes to do when I go through this more deeply. So I want to thank you for all the efforts you did in this. And I think it's been very helpful and educational to all of us. Thank you. Anthea, did you have anything? No. Great. You're going to end up with homework, obviously. But I was afraid to give it out in advance because you would all drop the class. So we decided that having Joe explain it and then we'll follow up with a hard copy. And he's accessible for follow-up things. I mean, I think the big takeaways for us is just how strong mixed use is performing. And I do think it was an unexpected surprise at how strong the townhouses and row houses that we have are. We do, we did plan for other yokes. That's what that four corners area was supposed to evolve to, but it's never happened before. So I think it's a good opportunity for us to regroup and figure out where to focus. The other thing that I think maybe wasn't as clear, well, it was clear, but it was at the end and we were all writing numbers down. They have built a model for Orange County that has the inputs on infrastructure costs. And they are using that to weigh different development proposals for their long-term benefit costs, which is not a tool we have. So I think we're going to reach out to Orange County with your blessing and find out how they're using it, how effective it is. And that may be something we want to, you know, reengage so that when we're bringing these developments before you, we would have that financial analysis as part of the backup as well. So we'll look into that. That impact study helps us get there, but you're right. This would be more detailed. I like that idea. Thank you. Are you finished? Mr. Moore. That concludes the workshop meeting. I would like to encourage the Commission to perhaps offer a 10-minute break. There are a couple of photo opportunities we'd like to facilitate to help further mark the occasion. Okay. So, again, thank you for your presentation. Thank you. Thank you, Anthea. And this meeting of the workshop is adjourned. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.