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1998-12-15city of 5outnim, ims SOUTHLAKE TAX INCREMENT REINVESTMENT ZONE BOARD MEETING December 15, 1998 MEETING MINUTES Board Members Present: Rick Stacy, Ralph Evans, Gary Fawks, Scott Martin, Ronnie Kendall, Buddy Luce, Ted Gillum, Drenda Witt, Jane Sanford Board Members Absent: Larry Darlage, Wayne Moffat, Debra Edmondson Staff Present: Southlake City Manager Curtis E. Hawk, Southlake Director of Finance Lou Ann Heath, Southlake Assistant to the City Manager Shelli Siemer, Tarrant County Economic Development Coordinator Lisa McMillan. Agenda Item No. 1. Call to order. The meeting was called to order by Chairman Rick Stacy at 4:05 p.m. Agenda Item No. 2. Consideration: Reinvestment Zone Project and Finance Plan. Curtis Hawk explained this item is on the agenda for the Board to reconsider the project plan from the one approved in December, 1997. At the December 12, 1997 meeting, the TIRZ Board approved the final project and financing plans. Over the course of the year, the City of Southlake has worked with the CISD to determine their level of participation in the TIRZ. The initial Ordinance No. 682, established the TIRZ boundaries at 256 acres, including the area between Kimball Avenue, Carroll Avenue, State Highway 114 and Southlake Boulevard. At the request of CISD, we amended the Ordinance (682-A) to expand the boundaries to 408 acres. These boundaries are still in effect today. This enabled the CISD, if legally permissible, to spend revenues captured through its TIF dollars for educational facilities which would include schools, the stadium, and transportation facility. The expanded boundaries will also require improvements of the roadways to the school sites opening access to the CISD facilities and ultimately opening the area for people to access the Town Square site. Over the past year, we have been working with the school to determine whether they could build the schools within the TIRZ and whether the school can participate in the TIF. At the December 12, 1997, TIRZ Board meeting, the board voted to reduce the boundaries down to 256 acres for purposes of the Project and Financing Plan, and removed those school projects (approximately $34 million) to include only the stadium. The action was taken because there was no decision from CISD on how they were able to participate in the TIRZ. Recognizing we still had the boundary set by Ordinance 682-A at 408 acres, City Council approved Ordinance No. 690, adopting the final project and financing plans, without the additional school projects. TIRZ Board Meeting Minutes December 15, 1998 Page 2 The TIF boundary is still in place at 408 acres (Ordinance 682-A). The TIRZ Board should consider placing school projects back in the project plan to give the CISD the ability participate. We are trying ensure specific projects are back within the plan to show that the larger area of the plan is congruent within the TIRZ boundaries to give CISD the possibility to participate when they determine their ability. If there is a mechanism for the school to make it work, we want to allow them to participate in the TIF. CISD is unique because of the complexity of the school financing law which penalizes high growth areas because it does not accommodate for our type of growth. We are trying to work out the issue with CISD to find a way for the school to participate in the TIF. We have met with school staff and professional advisors, and we feel there is some language worked out between the CISD and City of Southlake including the "hold harmless" section of the agreement. First, the school needs to determine whether they even want to participate in the TIF. Second, if they choose to participate, then the City of Southlake needs a comfort level with CISD to make the agreement possible. Curtis Hawk explained that this project plan comes back to the City Council as an ordinance, and we will have a joint meeting with the school board to discuss these issues. The TIRZ Board is asked to consider the project plan including the school projects. The project and financing plan can be amended at any time. Approving the educational facilities in the plan now allows the CISD to study their ability to participate and gives us the direction necessary to work out the details with the CISD. Another change in the project plan, includes the costs for professional services which were originally approved with $200,000 for the professional services. The costs have increased because we have better estimates of the costs for the Town Hall. At the time this item was considered, we discussed this early on about bringing this back to provide a line item for professional services costs. Gary Fawks asked whether or not the costs regarding the streets and curb sections includes right-of-way acquisition. The right-of-way we need is already obtained with the anticipation that some of the remaining sections will be donated. Scott Martin explained that by including the streets in the TIF it will do exactly what the TIRZ is intended to do to provide infrastructure to ensure economic development. When the City discussed the economic development goals for the TIF we identified that the County will benefit from the TIF by generating development around it to benefit the County. This will shortly start to take form and create additional dollars to the County and Hospital District. The recommendation to the TIRZ Board is to consider the project plan and CIP plan as identified in attachment C-1. The attachments in C-3 supports the project plan which the School and City will work out the details. Exhibit C-3 shows projects will be funded with CISD contributions at 100% participation of M&O tax rate. Chairman Stacy stated that the item on C-1 says multipurpose stadium instead of educational facilities. The language should include educational facilities as provided by the State Statute, considering the educational facilities are permitted by law. • TIRZ Board Meeting Minutes December 15, 1998 Page 3 Buddy Luce made a motion to approve the amendments to the project and finance plan to include school educational facilities consistent with the laws and statutes with the State of Texas, as amended today or in the future, and increase the boundaries for the project plan to conform to Ordinance 682-A, as passed on December 2, 1997. Gary Fawks seconded the motion. Chairman Stacy asked if there was any further discussion by the board members. Drenda Witt asked if there is any impact on the Hospital District? Mayor Stacy indicated that this does not impact the Hospital District. Chairman Stacy stated that it is in our best interest to identify what the school's projects are as quickly as possible to complete this discussion. Motion: Buddy Luce Second: Gary Fawks Ayes: Stacy, Evans, Fawks, Martin, Kendall, Luce, Gillum, Witt, Sanford Nays: None Approved: 9-0 vote Buddy Luce stated that they will be working out all the agreements between the CISD and City of Southlake. Agenda Item No. 3 Adjournment. There being no further discussion, motion was made to adjourn the meeting at 4:45 p.m. All members were in favor of adjournment. Rick Stacy, Chair ATTEST: