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Home My WebLink AboutTax Increment Finance (TIF)-Agenda Packets-9/17/2014City of Colleyville Page 1 City of Colleyville Tax Increment Financing District Board Agenda City Hall 100 Main Street Colleyville, Texas 76034 817. 503.1000 www.colleyville.com Wednesday, September 17, 2014 12:00 - Noon Executive Conference Room Third Floor, City Hall 1. CALL TO ORDER 2. CONSENT: READING AND PUBLIC HEARING- Resolution R-14-01 2a Approval of the minutes of the Tax Increment Financing District Board of Directors meeting of July 16, 2013 3. PRESENTATION AND DISCUSSION 3a Presentation of the Annual Tax Increment Financing District Report 3b Review and discuss the status of the Colleyville Tax Increment Financing District 4. ADJOURNMENT I hereby certify this agenda was posted on City Hall bulletin boards Friday, September 12, 2014, by 5:00 p.m. Amy Shelley, TRMC City Secretary Any matter on this agenda may, at the discretion of the governing body, be opened for public comment and discussion. If you plan to attend this public meeting and have a disability that requires special accommodations, please advise the Executive Secretary at least 48 hours in advance at 817.503.1110, and reasonable accommodations will be made to assist you. RESOLUTION R-14-01 A RESOLUTION APPROVING MINUTES OF THE TAX INCREMENT FINANCING DISTRICT BOARD OF DIRECTORS MEETING WHEREAS, the Colleyville Tax Increment Financing District Board of Directors held a meeting on July 16, 2013. NOW, THEREFORE, BE IT RESOLVED BY THE TAX INCREMENT FINANCING DISTRICT BOARD OF DIRECTORS OF THE CITY OF COLLEYVILLE TEXAS: Sec 1. THAT the minutes of the Tax Increment Financing District Board of Directors meeting held November 20, 2012 are hereby approved. AND IT IS SO RESOLVED. APPROVED BY A VOTE OF ___ AYES, ___ NAYS, AND ___ ABSTENTIONS ON THIS THE 17TH DAY OF SEPTEMBER 2014. ATTEST: COLLEYVILLE TAX INCREMENT FINANCING DISTRICT BOARD Amy Shelley, TRMC David Kelly City Secretary Chairman City of Colleyville Page 1 City of Colleyville Tax Increment Financing District Board Minutes - Draft City Hall 100 Main Street Colleyville, Texas 76034 817. 503.1000 www.colleyville.com Tuesday, July 16, 2013 4:00 p.m. Executive Conference Room Third Floor, City Hall The Tax Increment Financing District Board of Directors meeting was called to order by Chairman David Kelly on July 16, 2013, at 4:02 p.m. ROLL CALL: Chairman David Kelly, Vice Chairman Mike Taylor, Directors Carol Wollin, Stan Hall, Tom Hart, Mark McClendon, Carolyn Sims, and John Eubanks. Absent: Director Scott Rule City Manager Jennifer Fadden, Assistant City Manager and Chief Financial Officer Terry Leake, Economic Development Director Marty Wieder, Strategic Services Manager Adrienne Lothery, Finance Manager Karen Hines, City Attorney Matthew Boyle, and City Secretary Amy Shelley. 2. EXECUTIVE SESSION - In accordance with Texas Government Code Chapter 551, Subchapter D Section 551.071 - Legal - Consultation with attorney on legal issues raised by public hearing or action items on the agenda Section 551.087 – Economic Development - Discuss or deliberate regarding commercial or financial information that the City has received from business prospects that the City seeks to have locate, stay, or expand in the City and with which the City is conducting economic development negotiations; deliberate the offer of a financial or other incentive to a business prospect Chairman Kelly explained the Executive Session had been called in accordance with the Texas Government Code, Chapter 551, Subchapter D, Section 551.071, Legal and Section 551.072, Economic Development. He further explained there would be no decisions made or action taken during this time. The Executive Session was adjourned at 4:38 p.m. RESUME REGULAR MEETING Chairman Kelly reconvened the regular meeting at 5:07 p.m. Tax Increment Finance District Minutes - Draft July 16, 2013 City of Colleyville Page 2 3. EXECUTIVE SESSION: CONSIDER AND TAKE ANY ACTION(S) NECESSARY RELATIVE TO ITEMS DISCUSSED IN EXECUTIVE SESSION - Resolution R-13-01 Chairman Kelly read Resolution R-13-01 in its entirety. Chairman Kelly opened the public hearing at 5:07 p.m. There was no one present wishing to speak and Chairman Kelly closed the public hearing at 5:08 p.m. Director Hall moved to approve Resolution R-13-01. Director Hart seconded the motion. The motion carried by the following vote: Aye: 8 – Chairman David Kelly, Vice Chairman Mike Taylor, Directors Carol Wollin, Stan Hall, Tom Hart, Mark McClendon, Carolyn Sims and John Eubanks Absent: 1 – Director Scott Rule 4. CONSENT: READING AND PUBLIC HEARING - Resolution R-13-02 4a Approval of the minutes of the Tax Increment Financing District Board of Directors meeting of November 20, 2012 Chairman Kelly read Resolution R-13-02 in its entirety. Chairman Kelly opened the public hearing at 4:03 p.m. There was no one present wishing to speak and Chairman Kelly closed the public hearing at 4:03 p.m. Director Wollin moved to approve Resolution R-13-02. Vice Chairman Mike Taylor seconded the motion. The motion carried by the following vote: Aye: Chairman David Kelly, Vice Chairman Mike Taylor, Directors Carol Wollin, Stan Hall, Tom Hart, Mark McClendon, Carolyn Sims, and John Eubanks Tax Increment Finance District Minutes - Draft July 16, 2013 City of Colleyville Page 3 Absent: 1 – Director Scott Rule 5. PRESENTATION AND DISCUSSION 5a Presentation of the Annual Tax Increment Financing District Report Assistant City Manager/Chief Financial Officer Terry Leake presented the Annual Tax Increment Financing District Report. Vice Chairman Taylor stated he would like to see the interest rate on the bond information. Assistant City Manager/Chief Financial Officer Terry Leake replied the interest rate on the bond can be reflected moving forward. 5b Review and discuss the status of the Colleyville Tax Increment Financing District Assistant City Manager/Chief Financial Officer Terry Leake presented the status of the Colleyville Tax Increment Financing District. Director Mark McClendon questioned staff regarding the forecast value at the end of the period. Assistant City Manager/Chief Financial Officer Terry Leake replied the value is estimated to cover the project cost, which ends in 2030, to be a little over the $44 million. Vice Chairman Taylor questioned staff regarding the changes. Assistant City Manager/Chief Financial Officer Terry Leake replied the update includes the changes where the project plan stands today. Director Hall questioned staff regarding the $4.7 million outstanding bond issue, what does that include? Assistant City Manager/Chief Financial Officer Terry Leake replied those are for the City Hall and Library complex and the John McCain road project. She added the City has not had to issue debt for other projects included in the project plan. Chairman Kelly questioned staff regarding the available cash as of today. Assistant City Manager/Chief Financial Officer Terry Leake replied it is over $11 million, and in the amount of uncommitted funds is over $8 million. Vice Chairman Taylor questioned staff regarding the Village Park portion of the TIF before and after the improvements. Economic Development Director Marty Wieder replied not having that dollar amount for this meeting, but that it can be provided, however it is not TIF specific. Tax Increment Finance District Minutes - Draft July 16, 2013 City of Colleyville Page 4 Vice Chairman Taylor questioned staff regarding if the name of the Village Park addition will now be called Colleyville Downs? Director Wieder replied yes. City Manager Jennifer Fadden questioned Vice Chairman Taylor, for clarification, if he is questioning the ad valorem taxes paid or the value? Vice Chairman Taylor stated today, versus what is being brought in for projections. City Manager Jennifer Fadden explained staff has the actual ad valorem taxes paid, and from that staff can extrapolate the projected value of the shopping center. Director McClendon explained there are multipliers in place. Director Hall questioned staff regarding the 2011 bond payment. Assistant City Manager/Chief Financial Officer Terry Leake replied those bonds were actually refunded at that time. She stated the average debt service is $687,000 annually. She added the 2002 bond was totally refunded. Chairman Kelly recessed the regular meeting at 4:40 p.m. to move into Executive Session. 6. ADJOURNMENT There being no further business before the Tax Increment Financing District Board, Chairman Kelly adjourned the meeting at 5:09 p.m. APPROVED BY A VOTE OF ________ AYES, ________ NAYS, AND ________ ABSTENTIONS, ON THIS THE ________ DAY OF ________ ________. Minutes taken and prepared by: Amy Shelley City Secretary City of Colleyville Page 1 City of Colleyville Tax Increment Financing District Board Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 3a Agenda Date 09/17/2014 Number 4a Type Presentation and Discussion Department City Manager Title Presentation of the Annual Tax Increment Financing District Report Explanation Terry Leake, City of Colleyville Assistant City Manager / Chief Financial Officer, will present the attached Annual Tax Increment Financing District Report for Fiscal Year 2013. Attachments 1.Fiscal Year 2013 Annual Tax Increment Financing District Report TIF REPORT - CITY OF COLLEYVILLE FISCAL YEAR ENDED SEPTEMBER 30, 2013 TAX YEAR 2012 / FISCAL YEAR 2013 TAXABLE VALUE $327,030,225 1998 BASE VALUE $75,821,735 INCREMENTAL VALUE INCREASE $251,208,490 REVENUES: TAX INCREMENT REVENUES - CITY OF COLLEYVILLE $894,051 GRAPEVINE COLLEYVILLE ISD -NET PAYMENT ^$1,849,511 GRAPEVINE COLLEYVILLE ISD **$753,495 TARRANT COUNTY #$0 TARRANT COUNTY COLLEGE DISTRICT $375,547 TARRANT COUNTY HOSPITAL DISTRICT #$0 TOTAL $3,872,605 ^ TOTAL PAYMENT FROM GCISD IS $2,499,338.90 AND 26% OF THE PAYMENT ($649,828.11) IS RETURNED TO GCISD PER CONTRACT FOR A NET TOTAL OF $1,849,510.79 ** THIS IS A SUPPLEMENTAL PAYMENT FOR TAX YEAR 2011 FOR DIFFERENCE IN ACTUAL TAX RATE AND $1.47 TAX RATE # CONTRACTUAL OBLIGATION FOR PAYMENT OF INCREMENTAL REVENUES HAS BEEN MET EXPENDITURES: SERIES 2011 REFUNDING BOND PAYMENT $679,650 TOTAL $679,650 OUTSTANDING DEBT SERVICE SCHEDULE SERIES 2011 TAX INCREMENT REVENUE AND REFUNDING BONDS FISCAL PRINCIPAL INTEREST TOTAL INTEREST YEAR RATE 2014 $555,000 $128,700 $683,700 3% 2015 $565,000 $114,675 $679,675 3% 2016 $585,000 $97,425 $682,425 3% 2017 $600,000 $79,650 $679,650 3% 2018 $615,000 $61,425 $676,425 3% 2019 $640,000 $39,400 $679,400 4% 2020 $665,000 $13,300 $678,300 4% TOTAL $4,225,000 $534,575 $4,759,575 City of Colleyville Page 1 City of Colleyville Tax Increment Financing District Board Agenda Briefing City Hall 100 Main Street Colleyville, Texas 76034 www.colleyville.com Agenda Number 3b Agenda Date 09/17/2014 Number 4b Type Presentation and Discussion Department City Manager Title Review and discuss the status of the Colleyville Tax Increment Financing District Explanation Terry Leake, City of Colleyville Assistant City Manager / Chief Financial Officer, will provide an update of the Fiscal Year 2014 status of the Colleyville Tax Increment Financing (TIF) District. Attachments 1.Colleyville TIF Fiscal Year 2014 Update presentation Colleyville Tax Increment Financing District Fiscal Year 2014 Update September 17, 2014 Purpose of a Tax Increment Financing (TIF) District •Chapter 311 of the Texas Tax Code •To accelerate commercial development in an underdeveloped area (geographic zone) or to renovate existing blighted development in an area •Provides for debt issuance for infrastructure improvements within the zone TIF District Resources/Expenditures •Entities contribute ad valorem taxes received from the incremental value increase on property within the zone •Debt issued for improvements within the TIF District is repaid from the participating entity’s ad valorem tax contributions Colleyville TIF History •November 1998: Tax Increment Financing Reinvestment Zone Number One (Colleyville TIF) is established by Ordinance O-98-1124* –633 acres along Colleyville Blvd. (SH26) –Base year (1998) taxable value: $75,821,735 –Termination to occur December 31, 2018 or when all project costs are paid and all debt is retired, whichever comes first *O-98-1131 amends O-98-1124 and provides for a termination date of 12/31/2030 –Estimated incremental taxable value at termination: $246,667,800 Colleyville TIF History •November 2012: Tax Increment Financing Reinvestment Zone Number One (Colleyville TIF) is amended by Resolution R-12-04 –Expanded TIF boundaries to include mostly additional vacant, underutilized land and some commercial property –Additions to the Project Plan include: Economic Development TIF Grant Program $17,256,185 Roadway Improvements 20,000,000 Trails and Public Amenities 5,500,000 Administrative Expenses 1,700,000 Total New Project Costs $44,456,185 Fiscal Year 2014 Contributed Tax Rate by Entity Total TIF Contributed Tax Rate: $1.24487 City of Colleyville $.35590 Grapevine-Colleyville ISD*$.74000 Tarrant County**$.0000 Tarrant County College $.14897 Tarrant County Hospital District**$.0000 * GCISD contributes 74% of the compressed operations and maintenance tax rate ** Tarrant County and Tarrant County Hospital District participation capped at $4.35M and $3.85M respectively; participation ended in FY2012 Fiscal Year 2014 TIF Taxable Value Recap FY 1998 Taxable Base Value:$75,821,735 FY 2014 Taxable Value:$329,363,634 Incremental Value Increase:$253,541,899 FY 2014 New Construction:$4,939,755 Expanded TIF Area Base Value:$30,796,078 FY 2014 Taxable Value:$31,311,386 Incremental Value Increase:$ 515,308 FY 2014 New Construction:$ 781,799 Colleyville TIF District Commitments •Outstanding Bond Issues: Series 2011: $4,075,875 (Balance at September 30, 2014) •*Incentified Developer Asset Repurchase Agreements: –Village at Colleyville: $4,500,000 –Town Center: $2,582,500 * Payments are only made if the developer builds the specified assets in the agreement; the annual payment is based on the taxes received from the increase in the taxable assessed value of the property from the date of the agreement. •Town Center •2001 Base Value:$ 2,993,059 •FY 2014 Value:$51,928,924 •Incremental Increase: $48,935,865 •Village at Colleyville •1999 Base Value:$ 3,141,139 •FY 2014 Value: $42,103,483 •Incremental Increase: $38,962,344 FY 2014 Property Value Incentified Asset Repurchase Agreements 1.Developer submits invoices and cancelled check copies by reimbursable category 2.City Engineer reviews for completeness and category eligibility and certifies the improvement 3.Assistant City Manager/Chief Financial Officer determines amount eligible to be paid annually per Tarrant Appraisal District TIF value reports 4.TIF payments are reviewed by the City’s external auditors during the annual audit Developer Asset Repurchase Agreement Payment Process •Total Agreement (March 2003): $2,582,500 •No Termination of Agreement •Total Value Submitted to Date: $2,271,631 •Total Payments to Date: $2,271,631 •Total Remaining Obligation: $310,869 Town Center Asset Repurchase Agreement •Original Agreement (Dec. 1999): $5,000,000 •Revised Agreement (Jan. 2001): $7,500,000 •Renegotiated Agreement (May 2009): $4,500,000 •Agreement Terminates: May 16, 2014 •Total Value Submitted to Date: $2,280,042 •Total Payments to Date: $2,280,042 •Total Remaining Obligation: $2,219,958 •Project Plan Unallocated Funds: $3,000,000 Village at Colleyville Asset Repurchase Agreement City of Colleyville TIF District Original Adopted Project Plan Colleyville TIF Project Plan Total Village at Colleyville Revised Agreement Unallocated Project Plan balance Roadway Improvements SH26 Matching School Improvements City Hall Library Fire Station Town Center Agreement Downtown Improvements $2,200,000 $1,700,000 $500,000 Plaza $1,595,000 $875,000 $200,000 $520,000 Professional Services $650,000 $400,000 $250,000 Public Parking, land, engineering $4,371,500 $700,000 $500,000 $980,000 $734,000 $1,457,500 Storm Drainage $200,000 $125,000 $75,000 Library $240,000 $240,000 Hall-Johnson Road $1,900,000 $1,900,000 Bluebonnet Drive $670,000 $670,000 SH 26 $4,850,000 $4,850,000 Tinker/Sanders Intersection $220,000 $220,000 Bogart $600,000 $600,000 Church Street $2,150,000 $1,100,000 $1,050,000 Riverwalk Drive $250,000 $250,000 Public Parking Structure $1,800,000 $1,800,000 Main Street $700,000 $700,000 City Hall $3,500,000 $3,500,000 Fire Station $867,500 $867,500 John McCain Road $626,000 $626,000 School Improvements $7,938,690 $7,938,690 Total $35,328,690 $4,500,000 $3,000,000 $5,146,000 $5,070,000 $7,938,690 $5,250,000 $974,000 $867,500 $2,582,500 •Bluebonnet Drive •Bogart Drive •Church Street •Hall-Johnson Road •John McCain Road •Riverwalk Drive •City Hall •Central Fire Station •Library •School Improvements •State Highway 26 Original Project Plan Status Update: Completed Projects Tinker/Sanders Intersection Phase II SH26 project Town Center Agreement Village at Colleyville Agreement Original Project Plan Status Update: In Progress Projects November 2012 TIF Project Plan Amendment Status Economic Development Grant Program:$17,256,185 Whole Foods Grant -$2,250,000 Remaining balance Economic Development Grant category $15,006,185 Available cash balance at 9/30/2014 $5,391,619 Infrastructure Improvements (Roadway/Trails and Public Amenities / Administrative): $27,200,000 Portion of SH26 utility relocations:-$3,562,388 Glade Road Phase I Bransford to Manning:-$5,708,039 Remaining balance Infrastructure Improvements category *$17,929,573 Available cash balance 9/30/2014:$2,127,938 *Balance of Glade Road project could come from this category Questions and Discussion