Announcements
Jeffery Clore from Clore Equipment updated the Council on the Laguna Boulevard development project, stating phase one of the project will be complete in four weeks.
Councilman Ken Medders recognized the SPI Chamber of Commerce for winning first place statewide for its 2022 Official Guide to South Padre Island in the Print and Electronic Publications category. The Chamber also won first place for the 2021 Official Guide to South Padre Island last year.
Presentation
Chief Financial Officer (CFO) Rodrigo Gimenez updated the fiscal year and CVB budget. Gimenez will be ready to submit the remaining budget (property tax) next week in a Special City Council meeting to comply with the 60 days requirement set by the Home Rule Charter.
Consent agenda
What happened: A motion to approve the consent agenda.
Motion passed.
Regular agenda
6.1
What happened: A motion to accept the United States Department of Commerce Economic Development Administration $1.5 million grant for the construction of the historical museum of South Padre Island.
Motion passed.
Why it matters: The museum's location is 610 Padre Blvd. President of the Historical Foundation, Dennis Franke, is delighted to begin the process. This grant is funded by the American Rescue Plan and acts as an addition to supporting local tourism through a new attraction. In addition, the grant award confirms the City of SPI's participation of 20% ($300,000) matching funds.
6.3
What happened: A motion to authorize the City Manager to execute an agreement with Hansen Professional Services Inc. for additional services related to the Wind and Water Sports Venue Biological Assessment and United States Army Corps of Engineers permitting.
Motion passed.
Why it matters: After pushback from the Council from a previous meeting, the motion passed after a "positive" meeting with Hansen Services, according to Mayor Patrick McNulty.
On June 24, 2022, the Council noted disappointment and lack of confidence in Hansen Services. Councilwoman Eva-Jean Dalton expressed reluctance and questioned whether previous issues were resolved. Mayor McNulty clarified to Dalton that "it was decided to proceed with the original plans to ensure the fastest timeline."
What now: Shoreline Director Kristina Boburka estimates 11-16 months for the project's construction.
6.4
What happened: A motion to approve the final layout for Sea Island Circle improvements partially funded under the coastal management program (CMP) cycle 26.
Motion passed.
Why it matters: The project layout for Sea Island Circle (beach access #6) contains restrooms, changing stations, and shade. Funding for the project is $120,000 with a local match of $80,000.
6.5
What happened: A motion to approve the first reading of ordinance number 22-04 amending chapter 11 by adding section 11–311–301 prohibiting the renting, leasing, or subleasing of only a swimming pool or spa without renting or leasing an overnight stay in Districts A, B-2, and E.
Motion passed.
Why it matters: The ordinance's first reading targets Swimply, an app allowing individuals to rent out their private pools by the hour, there are currently no private pools for rent on the island.
Discussion on whether this violated private property rights or is a health and safety issue developed between the council members. Although McNulty noted that many noise complaints are related to pool areas, "I just want to see if anyone is trying to get ahead of a potential issue."
Dalton commented on whether the rental property management association should be made aware and able to comment. "I am not in favor of this. I think it's going to be very hard to enforce. It's private property rights and you're restricting people's private property."
In previous meetings, such as a Shoreline Taskforce workshop and discussion of short-term rentals, one common denominator persisted; lack of enforcement of restrictions. Dalton recommended on focusing on current ordinances. "We're not even enforcing everything we have on the books. I think this is going to be too difficult. In my opinion, it will cause problems and I'm not in favor of violating private property rights."
A debate between Councilman Joseph Ricco and Councilwoman Eva-Jean Dalton erupted as both insisted their view was correct.
Joe Ricco argued that this is foresight and the City could be getting ahead of an issue. "This is not a private property rights problem. This is the commercialization of private property." He noted the many issues on the island and that he did not need VRM operators to tell him what was right. Also, he accused Dalton of being against restricting because of her profession. "Of course, you disagree. You're in the rental business."
Dalton clarified she was not in the rental business but real estate sales. Rebutted by Ricco, he established that she's a broker for a rental company.
After speaking to the Department of Governmental Affairs, Dalton stated that it is not an issue. Nonetheless, Ricco stood his ground, advocating that this was not a private property rights issue.
City Attorney Edmund Cyganiewicz gave his legal opinion concerning the topic, saying he was not concerned about violating property rights because of the distinction between that and a short-term rental property for overnight stays.
What now: McNulty concluded this topic as a health and safety issue. The second reading of this ordinance is TBA.
6.6
What happened: A motion to approve the SPI Holiday Sandcastle Village special event permit for one year subject to maintaining an insurance policy.
Motion passed.
Councilman Joe Rico and Mayor Patrick McNulty recused themselves and left early as this item affects both their businesses on the Entertainment District.
Why it matters: After not being renewed on their short-term leases since 2021, the representative of SPI Holiday Sandcastle Village, Lucinda Wierenga, appeared before the three council members for questions. Schwartz requested the group start looking for insurance. "It's a temporary canopy. What if something happens and it blows over? There's a parking lot. There's a Ferris wheel. There are people. Do you have an insurance policy or liability policy," asked, Councilman Schwartz.
Wierenga explained that the group did when they started until she spoke to someone she does not remember who said Louie's Backyard or the City covered it. "They told me not to worry about renewing." Wierenga assured Councilman Schwartz that they could apply for insurance again.
Another question from Schwartz was the amount of time before they get a permanent structure to avoid constant approval for permitting.
Wierenga responded that people from Louie's Backyard told her they had designs and ideas. "We would love a permanent structure there and we could also help with that design."
For the record, Schwartz sought to clarify that, "The property is not owned by Louie's Backyard or Tequila Sunset Bar & Grill. SPI Redevelopment Group owns it."
