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33. Regular Meeting July 12, 2004 Pag~ 4 shortfall of funds after the second year. Mr. O'Leary stated the Council could reduce spending or increase the hotel tax rate to cover the shortfall. Ms. Narvaiz stated she feels if this project would be located at the outlet malls, it would be a different project. She also stated the Council is trying to find other sources of paying for the shortfall without increasing property taxes. She stated the Council has many concerns and they are trying to decide what is best for San Marcos. Mr. Taylor stated he has been contacted by several citizens and he shares many of the same concerns. He stated he feels the City of San Marcos is fortunate to have a flagship project like this. He stated he feels additional research is needed regarding additional types of revenue the City could generate at the proposed location. Mr. Diaz stated he supports this project. He stated he feels Mr. Hammons is guru with a vision. He stated he feels the current environmental protection Ordinance will help address the environmental concerns. Mr. Bose stated he visited the Chateaus in Branson, Missouri. He stated while he was there he visited with the employees and they spoke very highly of Mr. Hammons. Mr. Guerrero stated he is excited about this project. He stated he is concerned about the environmental issues and the low wages. Mr. Mihalkanin stated he understands the concerns of lack of information. He stated during the negotiations it could threaten the leverage between the City and Mr. Hammons. He stated he feels the longterm benefits would be beneficial for the City. Mr. Thomaides requested Council consider a separate resolution or add wording to a general resolution holding the project to higher water control standards that go above and beyond the normal requirements. He stated he believes in allowing the citizens to vote on this project. He stated he is not in favor of reducing the CVB budget, but is more in favor öf increasing the Hotel/Motel Tax Rate. The Council agreed by consensus to hire an environmental consulting firm and to post the list of General Obligation and Certificates of Obligations on the City website. Mayor Narvaiz introduced a discussion regarding establishment of a Blue Ribbon Bond Committee (Temporary) and direction to Staff. Mayor Narvaiz stated she feels each Council Member should appoint two members to a Blue Ribbon Bond Committee. Mr. O'Leary inquired whether the Council is interested in attempting to have a Bond Election in May, 2005. The Council agreed by consensus to adjust the proposed schedule to allow the Blue Ribbon Bond Committee to make a recommendation by December 14, 2004. Mr. O'Leary stated the Council still needs to discuss the Capital Improvement Projects. The Council agreed by consensus to bring back the list of CIP projects to the next meeting. Mayor Narvaiz introduced a discussion regarding Mitchell Center Project/Lawsuit and direction to Staff. Mr. Mark Taylor updated the City Council on the status of the Mitchell Center. He stated the Mitchell Center purchased a three-acre site for the center in October 2001 using CDBG funds from the City. In April the City filed suit against the Mitchell Center after a deed was recorded indicating the Mitchell Center