Item 6NM E M O R A N D U M
August 15, 2018
To: Shana K. Yelverton, City Manager
From: Sharen Jackson, Chief Financial Officer
Subject: Item 6N: Ordinance No. 1197, 2nd Reading, approving an
amended Project and Financing Plan for Tax Increment
Reinvestment Zone Number One, City of Southlake, Texas;
extending the term of the reinvestment zone; providing a
severability clause and providing an effective date
Action
Requested: Approve Item 6N, extending the term of Southlake TIRZ #1
and amending the project and financing plans as proposed
Background
Information: The Southlake Tax Increment Reinvestment Zone #1 was
established to provide a financing mechanism to facilitate
high quality development in the southeast area of the city. It
consists of 408 acres that encompasses the entirety of
Southlake Town Square as well as additional Carroll
Independent School District properties shown on the map
included as Exhibit A-1 in the proposed amended project
and financing plan.
Created by Ordinance No. 682 in September 1997, TIRZ #1
is set to expire on December 31, 2018 or the date when all
project costs are paid and all debt is retired, whichever
comes first.
The purpose of Ordinance No. 1197 is to: (1) Extend the life
of the zone for an additional 20 years; and (2) Amend the
project and financing plan to include project costs related to
public buildings and facilities (including Carroll ISD facilities
located within the zone), public parks, general infrastructure,
technology infrastructure, operations and maintenance.
Financial
Considerations: Tax Increment Financing (TIF) is a tool to finance public
improvements within a defined area. The improvements
should enhance the environment and attract new
investment. The statutes governing tax increment financing
are in Chapter 311 of the Texas Tax Code.
A municipality makes an area eligible for tax increment
financing by designating a “reinvestment zone”, also called a
“tax increment reinvestment zone (TIRZ)” or a “tax increment
Item 6N: Ordinance No. 1197
Meeting Date: September 4, 2018
financing (TIF)” zone. The City of Southlake has one active
zone.
Costs of selected public improvements outlined in the zone’s
project and financing plan may be paid by current or future
tax revenue flowing from redeveloped or appreciated real
property valued in the zone. The additional tax dollars
generated by growth of real property value in the zone are
called the tax increment. These dollars flow to a fund for a
specified number of years. Money flowing into the fund each
year is spent according to an approved plan and in
accordance with agreements in place with participatin g
governmental units.
The TIRZ’s base year taxable value (1997) was
$23,475,366. Taxable property value appreciation in the
zone since that time was captured for investment in the zone
in accordance with the Project & Financing Plan approved in
August 1999 which outlined the strategies used to
encourage development in the zone. The Plan also included
value projections for the zone as a benchmark to track
performance.
This item proposes to extend the life of the zone an
additional 20 years as well as to amend the eligible project
costs and update the value projections within the zone.
Project Costs:
Total project costs for the extended life of the zone are
estimated at approximately $259,647,866. Specific project
cost estimates are included in Exhibit C. The proposed
public improvements in the zone fall into five general
categories: public buildings and facilities, public parks,
general infrastructure, technology infrastructure; and,
operations and maintenance.
In addition, the TIF will pay a portion of project costs and
operations for the Carroll Independent School District's
educational facilities listed in Exhibit C of the project plan,
which are located in the TIRZ boundaries.
Amended Financing Plan:
The Amended Financing Plan provides information on the
projected monetary impact that the extension of the TIRZ
could have on the property described in Exhibit A. It also
describes how that impact will be utilized to enhance the
area and region through leveraging the resources of each
entity who participates in the project.
Item 6N: Ordinance No. 1197
Meeting Date: September 4, 2018
With this amendment, the City of Southlake and Carroll
Independent School District are shown as participating at
100%, meaning that 100% of the increment generated from
these entities will flow into the fund. These revenues will be
used to fund public improvements within the included as
Exhibit C. Other taxing entities such as Tarrant County,
Tarrant County Junior College District and Tarrant County
Hospital District are illustrated as participating at 0% in the
TIRZ.
Strategic Link: C4: Attract and keep top-tier businesses to drive a dynamic
and sustainable economic environment; B2 Collaborate with
select partners to implement service solutions; F2 Invest to
provide and maintain high-quality public assets
Citizen Input/
Board Review : The City Council discussed the extension of the Southlake
TIRZ #1 during public workshops held on July 6, 2016 and
February 16, 2017. Additionally, staff briefed the Southlake
TIRZ #1 Board of Directors at their August 1, 2017 meeting.
The Southlake TIRZ #1 Board of Directors approved the
amended project and financing plan at their August 7, 2018
meeting.
Legal Review: The City Attorney has reviewed the proposed project and
financing plan.
Alternatives: 1. Do not approve and allow Southlake TIRZ #1 to expire.
2. Approve with changes
Supporting
Documents: 1. Ordinance No. 1197 (includes as attachment the
Amended Project and Financing Plan)
Staff
Recommendation: Approve as presented.
ORDINANCE NO. 1197
AN ORDINANCE OF THE CITY OF SOUTHLAKE, TEXAS,
APPROVING AN AMENDED PROJECT PLAN AND FINANCING PLAN
FOR TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY
OF SOUTHLAKE, TEXAS; EXTENDING THE TERM OF THE
REINVESTMENT ZONE; PROVIDING A SEVERABILITY CLAUSE;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Southlake, Texas passed Ordinance
682 creating Reinvestment Zone Number One, City of Southlake (the “Reinvestment
Zone”) as authorized by the Tax Increment Financing Act, Texas Tax Code, Chapter
311 (the “Act”) on September 23, 1997; and
WHEREAS, the City, after public hearing, passed Ordinance 682-A expanding
the Reinvestment Zone boundaries from 256 acres to 408 acres on December 2, 1997;
and
WHEREAS, the City Council of the City of Southlake, Texas passed Ordinance
690 approving the project plan and financing plan for the Reinvestment Zone on
December 16, 1997; and
WHEREAS, the City Council of the City of Southlake, Texas City, after public
hearing, passed Ordinance 752 amending the project and financing plan on August 17,
1999; and
WHEREAS, on August 7, 2018, the Board of Directors adopted an amended
project plan and financing plan (the “Amended Plans”) for the Reinvestment Zone; and
WHEREAS, the Amended Plans anticipate extending the term of the
Reinvestment Zone; and
WHEREAS, the City Council, after proper hearing and notice as required by the
Act, desires to approve the Amended Plans and extend the term of the Reinvestment
Zone.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SOUTHLAKE, TEXAS:
SECTION 1: The facts and recitations contained in the recitals of this ordinance are
hereby found and declared to be true and correct and are incorporated herein for all
purposes.
SECTION 2: The Amended Plans, attached hereto as Exhibit “A”, are approved.
SECTION 3: The term of the Reinvestment Zone is extended so that the Reinvestment
Zone terminates upon the earlier of: (a) December 31, 2038; or (b) the date when all
projects costs, as further described and detailed within the Amended Plans, are paid.
SECTION 4: If any section, paragraph, clause or provision of this Ordinance shall for
any reason be held to be invalid or unenforceable, the invalidity or unenforceability of
such section, paragraph, clause or provision shall not affect any of the remaining
provisions of this Ordinance.
SECTION 5: This Ordinance shall take effect and be in force immediately from and after
its passage on the date shown below.
PASSED ON FIRST READING, August 7, 2018.
PASSED ON SECOND READING AND ADOPTED, this the 4th day of September,
2018.
CITY OF SOUTHLAKE, TEXAS
Laura Hill, Mayor
ATTEST:
Carol Borges, TRMC
City Secretary
APPROVED AS TO LEGALITY:
City Attorney
EXHIBIT “A”
Amended Plans
CITY OF SOUTHLAKE
TAX INCREMENT
REINVESTMENT ZONE #1
AMENDED PROJECT AND FINANCING PLAN
AUGUST 7, 2018
Updated by:
Alison Ortowski
Assistant City Manager
Sharen Jackson
Chief Financial Officer
2 |
Table of Contents
03 07 17 32 33 page page page page page
38 42 43 50 51 page page page page page
Project Overview –
History, Executive
Summary and Location
Amended Project Plan
Amended Financing
Plan
Exhibit A-1:
Map of the Zone
Exhibit A-2:
Legal Description
Exhibit B:
Financial Analysis
Exhibit C:
Proposed Project Costs
Exhibit D:
Listing of Properties
Exhibit E: Public Notice
Exhibit F: Town Square
Concept Plan
Project
Overview
History and location of
Southlake TIRZ#1
3
4 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
History
In June 1997, the Southlake City Council
began the process of creating the Tax
Increment Reinvestment Zone #1 (TIRZ
#1) by setting the public hearing. In
September of 1997, the City Council
passed Ordinance No. 682 establishing
the boundaries and term of the zone and
creating a Board of Directors. In
December of 1997, the City Council
approved the final project and financing
plan. At that time, TIRZ #1 included 256
acres and project costs were established
at $26 million. Anticipated projects
included Town Hall, as well as general
infrastructure.
In October 1997, City staff met with staff
of the overlapping taxing jurisdictions to
discuss their participation and the
preliminary project and financing plan
that had been developed to delineate the
projects and costs of the zone. These
agreements were important to the
ultimate success of the TIRZ because
their pledged incremental property taxes
flowed into TIRZ #1 to help fund the
public improvements.
In January 1998, the City Council
approved participation agreements with
Tarrant County, Tarrant County Jr.
College, and Tarrant County Hospital
District. Although Carroll ISD had
expressed interest in being a part of the
project, their participation agreement
with the City of Southlake was not
approved until 1999.
In August 1999, the Reinvestment Zone
Board and the City Council amended the
Project and Financing Plan to provide for
a TIRZ boundary of 408 acres and project
costs of $163.6 million, to include Town
Hall, general infrastructure, and school
projects and operation costs. The life of
the zone remained 20 years.
Created in 1997 and
extended in 2018 for
twenty years
408 acres
$163.6 million in project
costs as part of the 1999
Project and Financing
Plan
$259.6 million in new
project costs identified in
the 2018 Project and
Financing Plan
5 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
History
Based on Ordinance No. 682, TIRZ #1 was
set to expire on December 31, 2018. In
August 2018, the TIRZ #1 Board and the
City Council amended the Project and
Financing Plan a second time to extend
the life of the zone for 20 years.
The participation of the overlapping
taxing jurisdictions was also adjusted to
reduce Tarrant County, Tarrant County Jr.
College, and the Tarrant County Hospital
District participation to zero percent. The
City of Southlake’s and Carroll ISD’s
participation amounts remained
unchanged in the extension with
participation at 100%.
This amended project and
financing plan extends the life
of the zone for an additional
twenty years, adjusts the
planned projects and
associated costs, and adjusts
the participation of
overlapping jurisdictions.
6 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Location
The area consists of approximately 408 acres and is more
fully described in the map and legal description
presented in Exhibit A.
Amended
Project Plan
Existing uses and
conditions of real property
and proposed
improvements
Proposed changes of
zoning ordinances, master
plans, building bodes and
other municipal
ordinances
List of estimated non-
project costs
Statement of a method of
relocating persons to be
displaced as a result of
implementing the plan
7
8 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended Project
Plan
As set forth in Section 311.011 in the Tax Increment Financing Act of the Tax
Code, the Project Plan for the Tax Increment Reinvestment Zone Number I,
Southlake, Texas must include the following elements:
1. A description and map showing existing uses and conditions of real property in the
zone and proposed uses of that property.
2. Proposed changes of zoning ordinances, the master plan of the municipality,
building codes and other municipal ordinances.
3. A list of estimated non-project costs.
4. A statement of a method of relocating persons to be displaced as a result of
implementing the plan.
9 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended Project
Plan
Element 1:
A description and map showing
existing uses and conditions of
real property in the zone and
proposed uses of that property
The boundaries of the Tax Increment
Reinvestment Zone are shown in Map 1.
Additionally, portions of the TIF are
located within the DFW International
Airport 65 ‘LDN’ and 75 'LDN' noise
contour. 'LDN' is the abbreviation for the
average day/night sound level calculation
methodology used by airport operators
to determine noise levels. The LDN is
shown in Map 2.
Since the creation of the zone in 1997, the
majority of the land area in the TIF has
been developed. Map 3 shows the current
uses within the TIRZ area. This is not an
exhaustive display, but is intended to
provide a feeling of the current area and
the possibility of expansion. The TIRZ has
existing development including
Southlake Town Square (at build out will
be a 130-acre development with over 3
million square feet of retail, office, civic,
park, and residential uses), Carroll ISD
uses (George Dawson Middle School, Old
Union Elementary School, and Dragon
Stadium), Kroger, Home Depot, and
other retail, commercial, and industrial
uses.
The development of the TIF District is as
follows: Approximately 59.48 acres
(14.58%) is classified as having no
improvement value, approximately 5.35
acres (1.31%) is shown to have
improvement under $100K, 220.41 acres
(54.02%) is classified as having
improvement over $100K, and 122.76
acres (30.09%) of the TIF area is within
the Right-of-Way (ROW).
The City of Southlake Land Use Plan
adopted in June 2018 designates Medium
Density Residential, Public Parks/Open
Space, Public /Semi Public, Town Center,
Regional Retail, and Industrial land uses.
Map 4 shows the Land Use Plan for the
TIRZ area.
The current zoning districts approved in
the Reinvestment Zone are shown in Map
5 and include: C3 - General Commercial,
R-PUD- Residential Planned Unit
Development, AG - Agricultural, SF20B-
Single Family Residential, CS -
Community Service, DT – Downtown
District, I-1 – Light Industrial District, and
S-P-1 – Detailed Site Plan District.
TIRZ #1 Maps located on the following pages:
•Map 1: Boundaries of the Reinvestment Zone
•Map 2: Airport Noise Overlay ‘LDN’
•Map 3: Current Uses and Conditions of Real
Property in TIRZ #1
•Map 4: TIRZ #1 Land Use
•Map 5: TIRZ #1 Zoning
10 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Map 1:
Boundaries of
Southlake TIRZ #1
11 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Map 2:
Airport Noise
Overlay
12 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Map 3:
Current Uses and
Conditions of Real
Property in TIRZ #1
13 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Map 4:
TIRZ #1 Land Use
14 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Map 5:
TIRZ #1 Zoning
15 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended Project
Plan
Element 2:
Proposed changes of zoning
ordinances, the master plan of the
municipality, building codes and
other municipal ordinances
Element 3:
A list of estimated non-project
costs
No changes are anticipated to any city
codes or ordinances by the extension of
the Tax Increment Finance Zone. This
does not preclude, however, the
possibility of planning and zoning changes
subject to the standard planning and
zoning process and procedures.
Non-project costs within the TIRZ zone
are those development costs not paid for
by the TIRZ. These will include, but are
not limited to, $400 million in
improvement costs for the Southlake
Town Square, which comprises 140 acres
or nearly one third of the total land area of
the Tax Increment Reinvestment Zone.
This provides a conservative projection of
assessed value growth and the potential
funds available for public improvements.
No information is available at this time on
the potential value of projects arising
from the other non-developed property or
from the value of expanding uses
currently within the TIRZ.
In the process of developing Southlake
Tax Increment Reinvestment Zone
Number One, it may be necessary to
relocate individuals and businesses. In the
event that this is required, the City will
follow the procedures that would be used
in the development or construction of
other public improvements outside the
zone.
16 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended Project
Plan
Element 4:
A statement of a method of
relocating persons to be
displaced as a result of
implementing the plan.
In the process of developing Southlake Tax Increment Reinvestment Zone Number One,
it may be necessary to relocate individuals and businesses. In the event that this is
required, the City will follow the procedures that would be used in the development or
construction of other public improvements outside the zone.
Amended
Financing
Plan
Estimated project costs of
the Zone, including
administrative expenses
A statement listing the
kind, number, and location
of all proposed public
works or public
improvements in the zone
Economic Feasibility Study
The estimated amount of
bonded indebtedness to be
incurred
The time when related
costs or monetary
obligations are to be
incurred
A description of the
methods of financing all
estimated project costs
and the expected sources
of revenue to finance or
pay project costs, including
the percentage of tax
increment to be derived
from the property taxes of
each taxing unit on real
property in the zone
The current total
appraised value of taxable
real property in the zone
The estimated captured
appraised value of the
zone during each year of
its existence.
The duration of the zone
17
18 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended
Financing Plan
The Amended Financing Plan provides
information on the projected
monetary impact that the extension
of the TIRZ could have on the property
described in Exhibit A. It also
describes how that impact will be
utilized to enhance the area and
region through leveraging the
resources of each entity who
participates in the project.
With this amendment, the City of
Southlake and Carroll Independent School
District are shown as participating at
100%, meaning that 100% of the
increment generated from these entities
will flow into the fund. These revenues
will be used to fund public improvements
within the zone as described beginning on
page 21 of this plan and included as
Exhibit C.
Upon approval of the amended project
plan and financing plan, an updated
participation agreement between the
Carroll Independent School District and
the City will be incorporated into this plan.
The Tax Increment Reinvestment Zone
Analysis, prepared by Hilltop Securities,
Inc. is included in its entirety in Exhibit
B.
19 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended
Financing Plan
•Acquisition and construction of
public works, public improvements,
new buildings, structures and
fixtures; the actual costs of the
acquisition, demolition, alteration,
remodeling, repair, or
reconstruction of existing buildings,
structures, and fixtures; and the
actual costs of the acquisition of
land and equipment and the
clearing and grading of land;
•Financing costs, including all
interest paid to holders of evidences
of indebtedness or other obligations
issued to pay for project costs and
any premium paid over the principal
amount of the obligations because
of the redemption of the obligations
before maturity;
•Real property assembly costs;
•Professional service costs, including
those incurred for architectural,
planning, engineering, and legal
advice and services; imputed
administrative costs, including
reasonable charges for the time
spent by employees of the
municipality in connection with the
implementation of the project plan;
•Relocation costs;
•Organizational costs, including the
costs of conducting environmental
impact studies or other studies, the
cost of publicizing the creation of
the zone, and the cost of
implementing the project plan for
the zone;
•Interest before and during
construction and for one year after
completion of construction,
whether or not capitalized;
•The cost of operating the
reinvestment zone and project
facilities;
•The amount of any contributions
made by the municipality from
general revenue for the
implementation of the project plan;
and
•Payments made at the discretion of
the governing body of the
municipality that the municipality
finds necessary or convenient to the
creation of the zone or to the
implementation of the project plans
for the zone.
The allowable "project costs"
by the municipality
establishing a reinvestment
zone, as set forth in Section
311.011 in the TIF Tax code,
are as shown on this page.
The specific projects
anticipated to be undertaken
in the Southlake TIRZ #1 are
included as Exhibit C.
20 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended
Financing Plan
As set forth in Section 311.011 in the Tax Increment Financing Act of the Tax
Code, the Financing Plan for the Southlake, Texas Reinvestment Zone Number
One must include the following elements:
1. Estimated Project Costs of the Zone, including administrative expenses,
2. A statement listing the kind, number and location of all proposed public works or
public improvements in the zone,
3. Economic Feasibility Study,
4. The estimated amount of bonded indebtedness to be incurred,
5. The time when related costs or monetary obligations are to be incurred,
6. A description of the methods of financing all estimated project costs and the
expected sources of revenue to finance or pay project costs, including the percentage of
tax increment to be derived from the property taxes of each taxing unit on real property
in the zone,
7. The current total appraised value of taxable real property in the zone,
8. The estimated captured appraised value of the zone during each year of its existence;
and,
9. The duration of the zone.
The following pages provide details
regarding these requirements for the
TIRZ #1 Amended Financing Plan.
21 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended
Financing Plan
Element 1:
Estimated Project Costs of the
Zone, including administrative
expenses
Element 2:
A statement listing the kind,
number and location of all
proposed public works or public
improvements in the zone
Total project costs are estimated at
approximately $259,647,866.
Specific project cost estimates are
included in Exhibit C.
The proposed public improvements in the
zone fall into five general categories:
•public buildings and facilities,
•public parks,
•general infrastructure,
•technology infrastructure; and,
•operations and maintenance.
In addition, the TIF will pay a portion of
project costs and operations for the
Carroll Independent School District's
educational facilities listed in Exhibit C of
the project plan, which are located in the
TIRZ boundaries.
The participation agreement between the
City of Southlake and the Carroll
Independent School District details the
School District's level of participation in
the TIF.
The costs of each item and a brief
description of the project components
are included on the following pages.
22 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended
Financing Plan
Element 1:
Estimated Project Costs of the
Zone, including administrative
expenses
Element 2:
A statement listing the kind,
number and location of all
proposed public works or public
improvements in the zone
Parking Facilities
$6,000,000
Public parking facilities provide parking
for the Town Square development and
could provide the TIF an optional revenue
source by maintaining the right to charge
parking fees.
Educational Facilities - Capital &
Operational School Improvement
Project
$175,908,022
CISD TIRZ contributions will be expended
on infrastructure and maintenance /
operations costs related to CISD facilities
within the TIRZ boundary. As part of the
TIRZ, the CISD will be paid a portion of
project costs and operations for the
educational facilities described Exhibit C.
The public improvements include a Middle
School, Intermediate School, Elementary
School, Transportation Facility, and
Multipurpose Stadium. These sites benefit
the community by attracting individuals
and businesses desiring to relocate to the
area with an exemplary school system
which provides quality academic and
athletic facilities.
Public Buildings and Facilities
Pedestrian Connectivity
$5,000,000
The Southlake 2030 Parks, Recreation,
Open Space, and Community Facilities
Master Plan includes a recommendation
to evaluate the feasibility of a pedestrian
bridge across FM 1709 from Rustin Park
(located in Town Square within the TIRZ
#1 boundary) to Central Park. This plan
includes funding for improvements
necessary to the area within the Zone in
order to create this pedestrian
connection.
Visitor Amenity Center
$2,000,000
The Southlake 2035 Tourism Master Plan
includes a recommendation to assess and
develop a strategy for a visitor services
center that could offer serviceable
amenities for guests. The center could
have single or satellite locations and could
also include amenities such as public
restrooms and serve as a type of “visitor
concierge.” This plan includes funding for
future development of a center in
Southlake Town Square.
23 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended
Financing Plan
Element 1:
Estimated Project Costs of the
Zone, including administrative
expenses
Element 2:
A statement listing the kind,
number and location of all
proposed public works or public
improvements in the zone
$7,400,726
The TIRZ project plan includes costs
associated with development of new
parks and improvements and
enhancements for existing public parks
within the Town Square development
including the planned improvements to
McPherson Park, recently adopted as part
of the Southlake 2030 Parks, Recreation,
Open Space, and Community Facilities
Master Plan.
These costs include land acquisition,
structures, hardscape, landscaping, and
trails.
Technology Infrastructure
$2,628,283
The TIRZ project plan includes costs
associated with the provision of
technology infrastructure within the zone.
These include installation of public Wi-Fi
systems and supportive infrastructure, as
well as equipment and materials
necessary to provide security camera
coverage within Southlake Town Square.
$14,444,000
The public improvement projects include
streets, water, sanitary sewer, and storm
water drainage systems. The project plan
separates the general infrastructure into
two categories designated as General
Infrastructure and Educational
Infrastructure. General Infrastructure
projects include costs associated with
reimbursing the developer for 40% of the
infrastructure costs within the Town
Square development. General
Infrastructure costs also include costs
associated with road improvements to
Carroll Avenue and Kimball Avenue, which
are located on the periphery of the TIRZ
boundaries.
Educational Infrastructure
$5,088,235
The Educational Infrastructure costs
include water, sewer, drainage, and road
construction to service the educational
facilities located in the TIRZ.
Public Parks General Infrastructure
24 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended
Financing Plan
Element 1:
Estimated Project Costs of the
Zone, including administrative
expenses
Element 2:
A statement listing the kind,
number and location of all
proposed public works or public
improvements in the zone,
Town Hall City / County Facility
$3,976,654
Southlake Town Hall is a shared facility
between the City of Southlake and
Tarrant County that brings the civic
offices of the City and Council together in
one central location. Town Hall is located
in the heart of the Town Square
development, and is considered a be the
focal point of the new downtown. The
facility is approximately 80,000 square
feet with approximately 12,000 square
feet dedicated to the Southlake Public
Library. The offices for the City of
Southlake include administrative offices,
Finance, Municipal Court, Utility Billing,
Planning, Economic Development, and
Public Works. The offices for Tarrant
County include the County Commissioner,
Constable, Justice of the Peace, County
Clerk offices, and Tax offices.
The initial term of the TIRZ funded the
construction of this facility as well as
provided for capital maintenance costs
designated for large capital expenditures
related to building maintenance.
.
This amended project and financing plan
includes funding to provide for the
operations and capital maintenance of
Southlake Town Hall, including future
renovations necessary to accommodate
staffing changes and ensure compliance
with the Americans with Disabilities Act,
as well as to provide for a sustainable
facility.
Operations and Maintenance
25 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended
Financing Plan
Element 1:
Estimated Project Costs of the
Zone, including administrative
expenses
Element 2:
A statement listing the kind,
number and location of all
proposed public works or public
improvements in the zone
Infrastructure and Asset Maintenance
$15,595,778
Public infrastructure and assets within the
Zone include sidewalks, streets, water /
wastewater facilities, storm water
facilities, signage, parking garages, and
light poles. This plan includes funding
necessary to maintain these assets.
Public Space Maintenance
$17,521,305
Public spaces within the zone include
streets, parking garages, and sidewalks.
In fact, about 30% of the Zone is
designated as public Right-of-Way
(ROW). These areas require regular
maintenance such as power washing,
sweeping, porter services for public trash
cans, landscaping, painting, and general
repairs. This element of the plan provides
funding for ongoing maintenance of these
public spaces.
.
Park Maintenance
$4,084,863
There are currently five parks that are
publicly maintained and located in
Southlake Town Square: Rustin Park;
Family Park; Summit Park; Frank Edgar
Cornish, IV Park; and McPherson Park.
This plan includes funding for the ongoing
maintenance of these parks which
includes not only landscaping but
hardscape like benches and infrastructure
elements such as fountains and ponds.
Operations and Maintenance
26 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended
Financing Plan
Element 3:
Economic Feasibility Study
Element 4:
The estimated amount of bonded
indebtedness to be incurred
Element 5:
The time when related costs or
monetary obligations are to be
incurred
.
The fiscal impact of phased development
is outlined in the Tax Increment
Reinvestment Zone Analysis (Exhibit B).
Not reflected in this analysis is the
anticipated sales tax and personal
property tax revenue which would be in
addition to the real property tax. These
revenue streams would not be designated
to be used specifically in the zone.
.
Debt issuance is not anticipated as an
element of this plan. Expenses will be
budgeted annually as needed, in
alignment with identified expenditures
within the project and financing plan.
Please refer to Exhibit C for details on
planned expenditures.
27 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended
Financing Plan
Element 6:
A description of the methods of
financing all estimated project
costs and the expected sources of
revenue to finance or pay project
costs, including the percentage of
tax increment to be derived from
the property taxes of each taxing
unit on real property in the zone
Project costs will be paid for through use
of tax increment funds received.
The revenue source will be the real
property taxes captured by the TIRZ.
For the Amended Financial Plan, the City
of Southlake is illustrated as participating
at 100% and Carroll Independent School
District is shown as participating at 100%.
Other taxing entities such as Tarrant
County, Tarrant County Junior College
District and Tarrant County Hospital
District are illustrated as participating at
0% in the TIRZ.
The Carroll Independent School District is
participating in the TIF with 100% of its
M&O rate in the TIF district.
The TIRZ, active through the City, will
make annual payments to the School
District in an amount necessary to offset
any negative financial impact on the
School District, as a result of its
participation in the TIF, relating to State
funds that would otherwise be received by
the School District under school finance
legislation or relating to amounts that
must be paid or contributed by the School
District under school finance law.
28 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended
Financing Plan
Element 7:
The current total appraised value
of taxable real property in the zone
The total appraised value of the taxable
real property in the zone, using the 1997
base year values provided by the Tarrant
Appraisal District, is $32,123,017.
The taxable value of those same
properties is $23,475,366, after deducting
a total of $8,647,651 for agricultural
deferrals and tax exempt properties. This
is the base year value established for the
zone.
When this plan was amended in 1999, the
total appraised value of the taxable real
property in the zone provided by the
Tarrant Appraisal District was
$54,949,664. The 1999 taxable value of
those same properties was $54,874,664,
after deducting a total of $75,000 for
agricultural deferrals and tax exempt
properties.
In 2018, the total appraised value of the
taxable real property in the zone provided
by the Tarrant Appraisal District is
$539,576,789. The 2018 taxable value of
those same properties is $ 528,026,644,
after deducting a total of $11,550,145 for
agricultural deferrals and tax exempt
properties.
A listing of existing properties is included
in Exhibit D.
29 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended
Financing Plan
Element 8:
The estimated captured appraised
value of the zone during each year
of its existence
The estimated appraised value of the improvements in the zone per year is listed in the
following table. The estimated value of the zone assumes an annual growth in the
appraised value of 6%. This is less than the historic double-digit average annual growth
in assessed values in the initial 20 year term of the district.
Fiscal Year
Incremental
Taxable Assessed
Valuation
Fiscal Year
Incremental
Taxable Assessed
Valuation
2019 $504,551,278 2029 $896,773,204
2020 $534,308,355 2030 $950,063,596
2021 $565,850,856 2031 $1,006,551,412
2022 $599,285,907 2032 $1,066,428,497
2023 $634,727,062 2033 $1,129,898,206
2024 $672,294,685 2034 $1,197,176,099
2025 $712,116,367 2035 $1,268,490,665
2026 $754,327,349 2036 $1,344,084,104
2027 $799,070,990 2037 $1,424,213,151
2028 $846,499,249 2038 $1,509,149,940
30 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Southlake TIRZ #1
Amended
Financing Plan
Element 9:
The duration of the zone
The zone was created in September 1997,
with an effective date of January 1, 1998.
The zone was set to exist for 20 years with
an expiration date set at either December
31, 2018, or the date when all project
costs were paid and all debt was retired,
whichever came first.
This amended plan extends the life of the
zone for an additional 20 years with
termination of the zone set at either
December 31, 2038, or the date when all
project costs are paid, whichever comes
first.
Exhibits Exhibit A: Legal
Description and Map of
The Reinvestment Zone
Exhibit B: Tax Increment
Reinvestment Zone
Analysis
Exhibit C: Proposed
Project Costs
Exhibit D: Listing of
Properties
Exhibit E: Public Notice of
a Public Hearing
Exhibit F: Town Square
Concept Plan
31
32 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit A-1:
Map of The
Reinvestment Zone
33 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit A-2:
Legal Description of
The Reinvestment
Zone
Beginning at the intersection of the south right-of-way line of F.M. 1709 (Southlake Boulevard) and the
projection of the west right-of-way line of Carroll Avenue (said right-of-way being either the existing or
what becomes future right-of-way after future right-of-way acquisition)
THENCE NORTH, along the west right-of-way of Carroll Avenue (said right-of-way being either the existing
or what becomes future right-of-way after future right-of-way acquisition} to the intersection of the said
west right-of-way line of Carroll Avenue and the south right-of-way of State Highway 114 (Northwest
Parkway) (said right-of-way being either the existing or what becomes future right-of-way after future
right-of-way acquisition);
THENCE NORTH, along the west right-of-way of the intersection of State Highway 114 (Northwest Parkway)
and Carroll Avenue (said right-of-way being the west right-of-way after right-of-way acquisition is complete
for the construction of State Highway 114 improvements) to the intersection of the north right-of-way of
State Highway 114 (said right-of-way being either the existing or what becomes future right-of-way after
future right-of-way acquisition) and the west right-of-way of Carroll Avenue (said right-of-way being either
the existing or what becomes future right-of-way after future right-of-way acquisition);
THENCE EAST, along the north right-of-way of State Highway 114 (Northwest Parkway) (said right-of-way
being either the existing or what becomes future right-of-way after future right-of-way acquisition)
continuing to the intersection of the east right-of-way line of Kimball Avenue (said right-of-way being
either the existing or what becomes future right-of-way after future right-of-way acquisition):
THENCE SOUTH, along the east right-of-way of State Highway 114 (Northwest Parkway) (SJ.id right-of-way
being the east right-of-way after right-of-way acquisition is complete for the construction of State
Highway 114 improvements) to the intersection of the south right-of-way of State Highway 114 (said right-
of-way being either the existing or what becomes future right-of-way after future right-of way acquisition),
and the east right-of-way of Kimball Avenue (said right--of-way being either the existing or what becomes
future right-of-way after future right-of way acquisition);
THENCE SOUTH, continuing along the east right-of-way of Kimball Avenue (said right-of-way being either
the existing or what becomes future right-of-way after future right-of-way acquisition) to the intersection of
the south right-of-way of Crooked Lane and the said east right-of-way of Kimball Avenue;
34 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit A-2:
Legal Description of
The Reinvestment
Zone
THENCE continuing in a southeasterly direction in a curve to the left along the east right-of way of Kimball
Avenue (said right-of-way being either the existing or what becomes future right-of-way after future right-
of-way acquisition) to the intersection of the east right-of-way of Kimball Avenue and the west property line
of Tract 1 of the C.B. McDonald Survey (Abstract 1013);
THENCE NORTH, along the west property line of said Tract 1 to the intersection of the west line of Tract 1
and the southeast corner of Tract 3 of the C.B. McDonald Survey (Abstract 1013);
THENCE WEST, along the south property line of said Tract 1 to the southwest corner of said Tract 3;
THENCE NORTH, along the west property line of said Tract 3 to the southeast corner of said Tract 3B3;
THENCE WEST, along the south property line of said Tract 3B3 to the southwest corner of said Tract 3B3;
THENCE NORTH, along the west property line of said Tract 3B3 to the northwest corner of said Tract 3B3;
THENCE EAST, along the north property line of said Tract 3B3 to the northwest corner of said Tract 3;
THENCE EAST, along the north property line of said Tract 3 to the northwest corner of said Tract 1;
THENCE EAST, along the north property line of said Tract 1 to the northeast corner of said Tract 1, said
point being in the city limit line of the City of Southlake;
THENCE SOUTH, along said east property line of Tract 1 to a point being in the city limit line of the City of
Southlake and being in the north right-of-way line of South Kimball Avenue (said right-of-way being either
the existing or what becomes future right-of-way after future right-of-way acquisition);
THENCE continuing in a southeasterly direction in a curve to the right along the north right of-way of South
Kimball Avenue (said right-of-way being either the existing of what becomes future right-of-way after
future right-of-way acquisition) to the intersection of the east right-of-way of South Kimball Avenue and
the south property line of Heritage Industrial Park, said point also being in the city limit line of the City of
Southlake;
35 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit A-2:
Legal Description of
The Reinvestment
Zone
THENCE SOUTH, along the south property line of said Heritage Industrial Park to the intersection of the
south line of Heritage Industrial Park and the south right-of way line of South Kimball Avenue;
THENCE continuing in a northwesterly direction in a curve to the left along the west right-of-way of Kimball
Avenue (said right-of-way being either the existing or what becomes future right-of-way after future right-
of-way acquisition) to a point in the east property line of Tract 1 of the C.B. McDonald Survey (Abstract
1013);
THENCE SOUTH, along the said east property line of Tract 1 to the southeast corner of said Tract 1, said
point being in the city limit line of the City of Southlake;
THENCE continuing in a southwesterly direction along the south line of said Tract 1 to the southeast corner
of Tract 1, said point being in the city limit line of the City of Southlake;
THENCE NORTH, along the said west property line of Tract 1 to a point in the east property line of Green
Meadow Addition and the south right-of-way line of South Kimball Avenue (said right-of-way being either
the existing or what becomes future right-of-way after future right-of-way acquisition);
THENCE continuing in a northwesterly direction in a curve to the left along the right-of-way of Kimball
Avenue (said right-of-way being either the existing or what becomes future right-of-way after future right-
of-way acquisition) to the intersection of the west right-of-way of Kimball Avenue and the south right-of-
way of Crooked Lane and the said east right-of-way of Kimball Avenue;
THENCE NORTH, along the west right-of-way of Kimball Avenue to the southeast corner of Tract 3A of the
John A. Freeman Survey (Abstract 529);
THENCE WEST, along the south property line of said Tract 3A to the southwest corner of said Tract 3A;
THENCE NORTH, along the said west property line of Tract 3A to the southwest corner of Tract 1 of the
John A. Freeman Survey (Abstract 529);
36 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit A-2:
Legal Description of
The Reinvestment
Zone
THENCE NORTH, along the said west property line of Tract 1 to the southwest corner of Tract 1B of the
John A. Freeman Survey (Abstract529);
THENCE NORTH, along the said west property line of Tract 1B to the southwest corner of Tract 1C of the
John A. Freeman Survey (Abstract 529);
THENCE NORTH, along the said west property line of Tract IC to the northwest corner of Tract 1C of the
John A. Freeman Survey (Abstract 529);
THENCE EAST, along the said north property line of Tract 1C to the northeast corner of Tract 1C of the
John A. Freeman Survey (Abstract 529), said point being in the west right-of-way of South Kimball Avenue;
THENCE NORTH, along the said west right-of-way line of South Kimball Avenue to the intersection of the
west right-of-way of South Kimball Avenue and the south right-of-way of F.M. 1709 (Southlake Boulevard);
THENCE WEST, along the south right-of-way of F.M. 1709 (Southlake Boulevard) to the projection of the
intersection of the west right-of-way of Carroll Avenue (said right-of-way being either the existing or what
becomes future right-of-way after future right-of-way acquisition) and south right-of-way of F.M. 1709
(Southlake Boulevard);
THENCE SOUTH, Along the east right-of-way of South Carroll Avenue to the intersection of the east right-
of-way of Carroll Avenue (said right-of-way being either the existing or what becomes future right-of-way
after future right-of-way acquisition) and the north right-of-way of East Continental Boulevard;
THENCE SOUTH, across East Continental Boulevard to the intersection of the south right-of-way line of East
Continental Boulevard and the east right-of-way of Brumlow Avenue;
THENCE SOUTH, along the east right-of-way line of Brumlow Avenue to the intersection of the east right-
of-way line of Brumlow Avenue and the south line of the Brumlow Industrial Addition, said point also being
in the city limit line of the City of Southlake;
37 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit A-2:
Legal Description of
The Reinvestment
Zone
THENCE SOUTH, along the south property line of said Brumlow Industrial Addition to the intersection of the
south line of said Brumlow Industrial Addition and the west right-of-way line of Brumlow Avenue;
THENCE NORTH, along the west right-of-way line Brumlow Avenue to the intersection of the west right-
of-way line of Brumlow Avenue and the south right-of-way line of East Continental Avenue;
THENCE WEST, along the south line of East Continental Avenue to the intersection of the west right-of-way
line of South Carroll Avenue and the south right-of-way line of East Continental Avenue;
THENCE NORTH, along the west right-of-way line South Carroll Avenue to the intersection of the west
right-of-way line of South Carroll Avenue and the south right-of-way of F.M. 1709 (Southlake Boulevard);
THENCE WEST, along the south right-of-way of F.M. 1709 (Southlake Boulevard) to the projection of the
intersection of the west right-of-way of Carroll Avenue (said right-of-way being either the existing or what
becomes future right-of-way after future right-of-way acquisition) and south right-of-way of F.M. 1709
(Southlake Boulevard) to the POINT OF BEGINNING, containing 408 acres, more or less.
38 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit B: Tax Increment Reinvestment Zone Analysis
39 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit B: Tax Increment Reinvestment Zone Analysis
40 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit B: Tax Increment Reinvestment Zone Analysis
41 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit B: Tax Increment Reinvestment Zone Analysis
42 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit C: Proposed Project Costs
43 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit D: Listing of Southlake TIRZ #1 Properties
44 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit D: Listing of Southlake TIRZ #1 Properties
45 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit D: Listing of Southlake TIRZ #1 Properties
46 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit D: Listing of Southlake TIRZ #1 Properties
47 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit D: Listing of Southlake TIRZ #1 Properties
48 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit D: Listing of Southlake TIRZ #1 Properties
49 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit D: Listing of Southlake TIRZ #1 Properties
50 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit E:
Public Notice
In addition to the public hearing notification advertised in the Fort Worth Star Telegram shown below,
notification letters were also sent to all property owners of record within the Zone.
51 | Southlake TIRZ #1 2018 Amended Project and Financing Plan
Exhibit F: Town Square Concept Plan
CITY OF SOUTHLAKE
TAX INCREMENT
REINVESTMENT ZONE #1
AMENDED PROJECT AND FINANCING PLAN
AUGUST 7, 2018
Updated by:
Alison Ortowski
Assistant City Manager
Sharen Jackson
Chief Financial Officer