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: