Loading...
1998-12-15 City of Southlake, Texas 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: City of Southlake, Texas MEMORANDUM December 11, 1998 TO: Tax Increment Reinvestment Zone Board Members FROM: Shelli Siemer, Assistant to the City Manager SUBJECT: TIRZ Board Meeting on Tuesday, December 15, 1998. The last Tax Increment Reinvestment Zone Board meeting was held on December 12, 1997, when the TIRZ Board approved the final project and finance plan for the Southlake Tax Increment Reinvestment Zone Number One. Over the seven month period of time in which the TIRZ was created and the jurisdictions were determining their level of participation, there were numerous discussions with the Carroll Independent School District regarding its level of participation. The CISD issues are complicated due to the State's school finance laws. The purpose of the December 15, 1998 meeting is to allow CISD to keep its options open as to its participation and its ability to include schools as educational facilities. As displayed in the timeline and flow chart attached to my memo, the TIF boundaries were increased and decreased depending on the CISD's position as to its ability to participate in the TIRZ. The project and financing plan also varied based on the ability of the CISD to participate in the TIF. On December 2, 1997, the City Council increased the boundaries of the TIF from the original 256 acres to 408 acres to address the request of the Carroll Independent School District to include the additional school projects including the middle school, intermediate school, and transportation facility. Over the next ten days, CISD was to determine its position (as to whether or not it was out or in the TIF) prior to the next TIF Board meeting. At their December 12, 1997 meeting, the TIF (Reinvestment Zone) Board approved the project and financing plan without including the school projects since CISD was still uncertain as to its participation, and reduced the TIF boundaries back to the original 256 acres; TIF Board also approved the project and financing plan to include increasing the cost for the Town Hall at 10,000,000, the joint use stadium, and reducing the life of the TIF back to the 20 year span (instead of the 40 years). This approved project and financing plan did not include the additional projects for the school. However, as noted in the timeline, the ordinance creating the TIF still includes the larger 408 acre boundary. The CISD has recently identified a potential ability to participate in the TIF at 100% and has requested the TIRZ Board and City Council to amend the project and finance plans to include the school projects and keep the TIRZ boundaries at 408 acres. The amendment to the Ordinance to reduce the boundaries to 256 acres had not been brought forward to the City Council for consideration because of the City's efforts this year to reach an agreement with the CISD regarding their involvement in the TIF. The updated cost projections for the TIRZ are included in your packet of information with the following changes: • Including the school projects $54,000,000 • General infrastructure for school projects $13,340,000 • Operating Costs for School facilities $27,760,000 • Increasing the cost for the Town Hall: $12,000,000 • Professional Services Fees $1,940,000 The TIRZ Board will be asked to consider amending the project and finance plan to reflect the CISD's request to include these projects. Exhibit C -1 Reinvestment Zone #1, Southlake Proposed Capital Improvement Program Type of Allowable Project Costs Phase One Phase Two Phase Three' Phase Four Public Buildings and Facilities Joint City/County /CISD Facility $ 12,000,000.00 Multi- Purpose Stadium $ 54,500,000.00 Parking Facilities $ 5,000,000.00 Public Parks $ 1,134,154.00 $ 1,572,465.00 Land Acquisition Special Structures Landscaping Trails General Infrastructure Water Utilities $ 548,380.00 $ 881,682.00 $ 500,000.00 Sewer Utilities $ 216,148.00 $ 350,234.00 $ 1,370,000.00 Storm Water $ 399,669.00 $ 1,010,522.00 $ 300,000.00 Streets and Curbs $ 1,329,972.00 $ 1,925,905.00 $ 2,500,000.00 $ 11,170,000.00 Traffic Control $ 1,000,000.00 Sidewalks /Streetscape $ 3,484,739.00 $ 4,907,623.00 Dem -" +ion & Excavation Ea k/Grading $ 302,540.00 $ 488,585.00 Eng,,,.. ring /Contingency Total Development Infrastructure $ 7,281,448.00 $ 9,564,551.00 40% of Developer Infrastructure $ 2,912,579.20 $ 3,825,820.40 Operational and Maintenance Capital Maintenance $ 1,000,000.00 Operation Costs $ 27,760,000.00 Other Incremental Costs Professional Services $ 1,940,000.00 TOTAL COSTS $ 17,986,733.20 $ 6,398,285.40 $ 7,500,000.00 $ 95,600,000.00 $ 127,485,018.60 ' These street costs include road improvements to Carroll Ave. and Kimball Ave. They are either on the periphery of or exterior to the Rialto Development and thus the costs are covered 100% by TIRZ revenues. 2 All projects in this phase are to be funded with CISD and City of Southlake contributions only. 3 Professional services includes ($200,000 for services fees; $1,200,000 for Architectural fees; $390,000 for Construction Management fees; and, $150,000 for Technology for Town Hall including AN, sound, computer networking, etc.) Exhibit C-3 Reinvestment Zone #1, Southlake Proposed Capital Improvement Program Phase Four To be funded with CISD and City of Southlake Contributions Only Water Utilities $ 500,000.00 Sewer Utilities $ 1,370,000.00 Drainage Improvements $ 300,000.00 Streets and Curbs South Carroll (1709 to Continental) $ 4,740,000.00 Brumlow (Continental to State Highway 26) $ 2,470,000.00 South Kimball (FM 1709 to Heritage Business Park) $ 3,960,000.00 Subtotal Infrastructure $ 13,340,000.00 Buildings and Facilities Middle School $ 20,000,000.00 Intermediate School $ 13,000,000.00 Transportation Facility $ 1,500,000.00 Stadium $ 20,000,000.00 Subtotal Buildings and Facilities $ 54,500,000.00 Operating Costs Middle School $ 400,000.00 Intermediate School $ 225,000.00 Transportation Facility $ 163,000.00 Stadium $ 600,000.00 Annual Operating Costs $ 1,388,000.00 Cost for 20 years $ 27,760,000.00 TOTAL $ 95,600,000.00 Reinvestment Zone #1, Southlake Creation Process Actual Schedule of Events Sep-97 Oct -97 Nov -97 Dec -97 S M T W T F S S M T W T F S S M T W T F S S M T W T F S ' 1 2 11 3 1 4 5 : 6 '1 2 1 3 , 4 1 ! 1 1 1 2 i 3 4 5 1 6 7 '1 8!911011112;13 5,6'718 9j10 11 213 4'5 1 6 7'819 10111 12113 141 151 161 17 18; 191 20 12' 13 141 151 161 171 18 9 10 11 12' 13 1 141 15 141 15 161 171 181 19 20 21 1 221 23 241 25 ! 261 27 19 20 ! 21 1 221 23 241 25 161 17 181 191 20 21 1 22 21 1 221 231 241 251 2627 28129 301 1 26127 281 291 30 311 23;24!251 26I271 281 29 28129 30 1 1 1 1 1 _301 1 I I I 1 I 1 1 1 • Date Day Event 24 Jun - 97 Tuesday City Council Meeting Adoption of Resolution 97 -43 setting a Public Hearing on the creation of Reinvestment Zone #1, Southlake (approved 6 -0) TIRZ Boundaries: 646 acres Project Cost: $80 million - 20 year life 25- Jun -97 Wednesday Preliminary Project and Financing Plan and Notice of Public Hearing sent to Overlapping Taxing Units 5 - Aug - 97 Tuesday City Council Meeting 1st Reading of Ordinance 682 creating Reinvestment Zone #1, Southlake and creating Board of Directors (approved Consent Agenda 6 -0) 2 - Sep - 97 Tuesday City Council Meeting 2nd Reading (Public Hearing) and Adoption of Ordinance 682 creating Reinvestment Zone #1, Southlake (Table 7 -0) 16 Sep - 97 Tuesday City Council Meeting 2nd Reading (Public Hearing) and Adoption of Ordinance 682 creating Reinvestment Zone #1, Southlake (Table 7 -0) 22 Sep - 97 Monday CISD School Board Meeting Presentation of Preliminary Project and Finance Plan Page 1 12/11/98 Date Day Event 23 Tuesday Tarrant County Commissioner's Court Presentation of Preliminary Project and Finance Plan 23- Sep -97 Tuesday City Council Meeting 2nd Reading (Public Hearing) and Adoption of Ordinance 682 creating Reinvestment Zone #1, Southlake (approve 5 -0) TIRZ Boundaries: 256 acres Project Cost: $26 million - 20 year life Town Hall $ 7.8 million Establish number of members to Board of Directors - not less than 7 and no more than 12; with terms for CC to reflect City Council terms and 1 additional CISD member 25- Sep -97 Thursday Tarrant County Hospital District Board Meeting Presentation of Preliminary Project and Finance Plan 22- Oct -97 Wednesday Meeting with overlapping taxing jurisdictions - Staff Briefing Discussion of Preliminary Project and Financing Plan 23 Oct - 97 Thursday Tarrant County Junior College Board Meeting Presentation of Preliminary Project and Finance Plan Approval of Letter of Intent to Participate Appointment of Dr. Larry Darlage to serve as TCJC Representative on Reinvestment Zone Board of Directors 28- Oct -97 Tuesday Tarrant County Commissioner's Court Approval of Letter of Intent to Participate 4- Nov -97 Tuesday City Council Meeting Adoption of Resolution 97 -70 appointing eight members to the Reinvestment Zone Board of Directors (approve 6 -0) 5- Nov -97 Wednesday Reinvestment Zone Board Meeting Discussion of Preliminary Project and Financing Plan • Page 2 12/11/98 Date Day Event • 12- Nov -97 Wednesday Reinvestment Zone Board Meeting Discussion of Preliminary Project and Financing Plan Discussed proposed boundary change to 408 acres for expanded school projects with full participation of CISD 17- Nov -97 Monday CISD Board Meeting Resolution of Intent to participate passed and Dr. Ted Gillum appointed to serve as CISD's representative on the Reinvestment Zone Board. 18- Nov -97 Tuesday Tarrant County Commissioner's Court Appointment of Ms. Jane Sanford to serve as Tarrant County's Representative on Reinvestment Zone Board of Directors 18- Nov -97 Tuesday City Council Meeting 1st Reading of Ordinance 682 -A Amending Boundary (approve 6 -0) TIRZ Boundaries: 408 acres Project Cost: $116.9 million - 20 year life Town Hall $ 7.8 million School projects: $ 54.5 million 19- Nov -97 Wednesday Joint COS /CISD Worksession Discussion of CISD Participation 20- Nov -97 Thursday Tarrant County Junior College Board Meeting Approval of Participation Agreement 2- Dec -97 Tuesday City Council Meeting 2nd Reading of Ordinance 682 -A Amending Boundary and Extending Life of Zone (approve 6 -0) TIRZ Boundaries: 408 acres Project Cost: $116.9 million - 40 year life Town Hall $ 7.8 million School projects: $ 54.5 million 1st Reading of Ordinance 690 Approving Final Project and Finance Plan (approve 6 -0) TIRZ Boundaries: 408 acres Project Cost: $116.9 million - 40 year life Town Hall $ 7.8 million School projects: $ 54.5 million Page 3 12/11/98 Date Day Event 12- Dec -97 Friday Reinvestment Zone Board Meeting Approval of Final Project and Financing Plan (1) Project Plan (approved 8 -0) as presented on Sept. 23 TIRZ Boundaries: 256 acres (2) Financing Plan(approved 8 -0) as presented at meeting Project Cost: $48.5 million - 20 year life Town Hall $ 10 million School projects: $20 million for stadium 16- Dec -97 Tuesday City Council Meeting 2nd Reading of Ordinance 690 Approving Final Project and Finance Plan TIRZ Boundaries: 256 acres Project Cost: $ 48.5 million - 20 year life Town Hall $ 10 million School projects: $20 million for stadium 16- Dec -97 Tuesday Adoption of Resolution 97 -80 Appointing the Mayor to serve as chair of the Reinvestment Zone Board 6- Jan -98 Tuesday Tarrant County Commissioner's Court Approval of Participation Agreement with the City City Council Meeting Approval of Participation Agreements with the County, TCHD, and TCJC 8- Jan -98 Thursday Tarrant County Hospital District Board Meeting Approval of Participation Agreement with the City Appointment of Ms. Drenda Witt to serve as TCHD Representative on Reinvestment Zone Board of Directors Page 4 12/11/98 4 co co Y V1 co c C C .� y O a~) O at W G O .c co `� e a o a co C E c c a a N a E y 0 0 r. O O m 8 O O m y ~ E O � O . 0 , LL C 7, to h 1 4 CO h V) C V C V C LL m U Si,' q1 y 3 Y Z U 5 0 c ° CO o F° e 0 cc a a v _ O .2 o Er . 8 Q t h 4 4 Y g y 1./ C ,e c y Ct �i� ^ 'v m Y c0 E ,, u CI a) N c `� o s o A i t 4 A r o 7 'O b N a) 0 `' = mlal c • O H= r a O O N C C Cs1 NW N O O) y 0 N Q °' $ O m N N (� C h y C O 6p4 Ina CA CU = Cj b ` � N y 3 v CA Z W g Y • c � H y Uh p Hy UE. 4 b m F a wu V W O '5 OP Er c O= i..4 4 4 N © el: co) a d _ c y L. ^, C ' N C 10 y o:i C ^I I r \_ N. 7 -O a) . _ c N _ N C o p '� c E 0 1 3 1��II v O .O �y CI O G N R C E Q A r ∎I G, m a C m O a a e 'n v j j W w co U Nk c L Q O N 6 o C _ Y / � c co £ (O LL' f ∎ m •� Q mV c U 0 � V v CO 5 �° y 3 . c _ p C ru c c 2 o Er ° o � O c Q 0 Q N V u !rl U 0 O Y y O ', y 4 4 a c u) 'O .2 y L, m C) W Y Y ? O P co f0 b ry Q1 O C co ~ '0'11 a ti t) 1 4 - t) O Q g Q O O C .$ 0 , e m co 'n et o O z' Y ° E , Q O N v sr) N - C1 j C z 0 N 0 o °� `9 CD d. b O b b u C O E (fl . O) ti ' „L 1 - a) V m'• j U V C c a 4 N U 0 c c Er % fn '. c N �. 0 [. Q Er u h a E O E 4, e ll OUthiCi - li m Highland St. City of • a ` e Southlake g 9 h , '' > v 31civr>rMu a PARR = P F � • City Hall V q o u 667 N. Carroll Ave R p -VJti Home kf°Jor pepoT Wa art rip F.M. 1709 Southlake Blvd. 7 • 0 Administrative Offices 1442 �l�S'�l 3 1725 E. Southlake Blvd. 411 1344:4111111111 U (Entracte otf Westwood Dr) N 72) X 21 ski M�