The URL can be used to link to this page

Home My WebLink AboutTax Increment Finance (TIF)-Agenda Packets-7/27/2015City 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 Monday, July 27, 2015 12:30 p.m. Executive Conference Room Third Floor, City Hall 1. CALL TO ORDER 2. CONSENT: READING AND PUBLIC HEARING Resolution R1501 2a Approval of the minutes of the Tax Increment Financing District Board of Directors meeting of September 17, 2014 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 Thursday, July 23, 2015 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-15-01 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 September 17, 2014. 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 September 17, 2014 are hereby approved. AND IT IS SO RESOLVED. APPROVED BY A VOTE OF ___ AYES, NAYS, AND ABSTENTIONS ON THIS THE 27TH DAY OF JULY 2015. 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 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 The Tax Increment Financing District Board of Directors meeting was called to order by Chairman David Kelly on September 17, at 12:08 p.m. ROLL CALL: Chairman David Kelly, Vice Chairman Mike Taylor, Directors Tom Hart, Jody Short, Carol Wollin, Stan Vick for Director 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, and Assistant City Secretary Christine Loven. 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 Chairman Kelly read Resolution R-14-01 in its entirety. Chairman Kelly opened the public hearing at 12:09 p.m. Director Jody Short stated he asked the July 16, 2013 TIF minutes be corrected, reflecting that Chairman Kelly adjourned Executive Session at 4:58 p.m., instead of 4:38 p.m. as the regular meeting was not recessed until 4:40 p.m. to move into Executive Session, and the corrected minutes were provided to the Board. There was no one present wishing to speak and Chairman Kelly closed the public hearing at 12:09 p.m. Director Wollin moved to approve Resolution R-14-01, approving the minutes as corrected. Chairman David Kelly seconded the motion. The motion to approve carried by the following vote: City of Colleyville Page 2 Tax Increment Finance District Minutes September 17, 2014 Aye: 8 - Chairman David Kelly, Vice Chairman Mike Taylor, Directors Tom Hart, Jody Short, Carol Wollin, Stan Vick for Director Mark McClendon, Carolyn Sims, and John Eubanks. Absent: 1 – Director Scott Rule 3. PRESENTATION AND DISCUSSION 3a Presentation of the Annual Tax Increment Financing District Report Assistant City Manager and Chief Financial Officer Terry Leake presented the Annual Tax Increment Financing District Report and briefed the Board. Chairman Kelly restated the final bond payment would be made in 2020. 3b Review and discuss the status of the Colleyville Tax Increment Financing District Assistant City Manager and Chief Financial Officer Terry Leake presented a status report of the Tax Increment Financing District. Chairman Kelly stated the construction figures were for completed projects in 2013. Assistant City Manager / Chief Financial Officer Terry Leake concurred. Chairman Kelly stated the Village asset repurchase agreement terminated this spring and asked if a reserve is kept. Assistant City Manager / Chief Financial Officer Terry Leake explained the asset repurchase verification process and noted there are alternate methods of acceptance. Director Eubanks asked what expenses were budgeted in the administrative expenses of $1,700,000. City Manager Jennifer Fadden stated the administrative fee line item reflects funds for studies, audits, and general administration over the remaining 17 years of the TIF, and the funds could also be used in other categories. Director Eubanks asked what dollar amount has been budgeted for Highway 26. City Manager Jennifer Fadden stated $4.85 million. 4. ADJOURNMENT There being no further business before the Tax Increment Financing District Board, Chairman Kelly adjourned the meeting at 12:45 p.m. City of Colleyville Page 3 Tax Increment Finance District Minutes September 17, 2014 APPROVED BY A VOTE OF ___ AYES, ___ NAYS, AND ___ ABSTENTIONS, ON THIS THE 27TH DAY OF JULY 2015. Minutes taken and prepared by: Christine Loven Assistant 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 07/27/2015 Number Type Presentation and Discussion Department TIF Title Presentation of the Annual Tax Increment Financing District Report Strategy Map Connection B3- Utilize partnerships to implement cost-effective service solutions F2- Invest to provide and maintain high quality public assets Explanation Adrienne Lothery, City of Colleyville Strategic Services Manager, will present the attached Annual Tax Increment Financing District Report for Fiscal Year 2014. Attachments 1.TIF Annual Report FY 2014 TIF ANNUAL REPORT - CITY OF COLLEYVILLE FISCAL YEAR ENDED SEPTEMBER 30, 2014 Colleyville TIF #1 TAX YEAR 2013 / FISCAL YEAR 2014 TAXABLE VALUE $329,363,634 1998 BASE VALUE $75,821,735 INCREMENTAL VALUE INCREASE $253,541,899 Colleyville TIF #1A TAX YEAR 2013 / FISCAL YEAR 2014 TAXABLE VALUE $31,311,386 2012 BASE VALUE $30,796,078 INCREMENTAL VALUE INCREASE $515,308 REVENUES: TAX INCREMENT REVENUES TIF #1 - CITY OF COLLEYVILLE $902,356 GRAPEVINE COLLEYVILLE ISD -NET PAYMENT ^$1,868,598 GRAPEVINE COLLEYVILLE ISD **$797,140 GRAPEVINE COLLEYVILLE ISD ***$805,366 TARRANT COUNTY #$0 TARRANT COUNTY COLLEGE DISTRICT $380,609 TARRANT COUNTY HOSPITAL DISTRICT #$0 TOTAL $4,754,068 TAX INCREMENT REVENUES TIF #1A - CITY OF COLLEYVILLE $1,834 TARRANT COUNTY COLLEGE DISTRICT $770 TOTAL $2,604 ^ TOTAL PAYMENT FROM GCISD IS $2,525,132.04 AND 26% OF THE PAYMENT ($656,534.33) IS RETURNED TO GCISD PER CONTRACT FOR A NET TOTAL OF $1,868,597.11 ** SUPPLEMENTAL PAYMENT FOR TAX YEAR 2012 FOR DIFFERENCE IN ACTUAL TAX RATE AND $1.47 TAX RATE *** SUPPLEMENTAL PAYMENT FOR TAX YEAR 2013 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 $683,700 SH 26 UTILITY RELOCATION $2,538,141 GLADE ROAD DESIGN $925,539 GLADE ROAD ROW ACQUISITION $447,657 WHOLE FOODS ECONOMIC DEVELOPMENT GRANT $375,000 TOTAL $4,970,037 OUTSTANDING DEBT SERVICE SCHEDULE SERIES 2011 TAX INCREMENT REVENUE AND REFUNDING BONDS FISCAL YEAR PRINCIPAL INTEREST TOTAL INTEREST RATE 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 $3,670,000 $405,875 $4,075,875 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 07/27/2015 Number Type Presentation and Discussion Department TIF Title Review and discuss the status of the Colleyville Tax Increment Financing District Explanation Adrienne Lothery, City of Colleyville Strategic Services Manager, will provide an update of the Fiscal Year 2015 status of the Colleyville Tax Increment Financing (TIF) District. Attachments 1.TIF FY 2015 update presentation Colleyville Tax Increment Financing District Fiscal Year 2015 Update July 27, 2015 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 2015 Contributed Tax Rate by Entity Total TIF Contributed Tax Rate: $1.27447 City of Colleyville $.35590 Grapevine-Colleyville ISD*$.76960 Tarrant County**$.00000 Tarrant County College $.14897 Tarrant County Hospital District**$.00000 * 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 2015 TIF Taxable Value Recap FY 1998 Taxable Base Value:$75,821,735 FY 2015 Taxable Value:$334,141,034 Incremental Value Increase:$258,319,299 FY 2015 New Construction:$2,523,987 Expanded TIF Area Base Value:$30,796,078 FY 2015 Taxable Value:$33,124,035 Incremental Value Increase:$2,327,957 FY 2015 New Construction:$0 Colleyville TIF District Commitments •Outstanding Bond Issues: Series 2011: $3,396,200 (Balance at September 30, 2015) •*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 2015 Value:$54,216,679 •Incremental Increase: $51,223,620 •Village at Colleyville •1999 Base Value:$ 3,141,139 •FY 2015 Value: $41,582,003 •Incremental Increase: $38,962,344 FY 2015 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.Strategic Services Manager 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 Terminated: 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 Agr. 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 (SH26) Original Project Plan Status Update: Completed Projects Tinker/Sanders Intersection (Sanders is now named Oak Pointe Drive) 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 9/30/2015 $6,859,263 Infrastructure Improvements (Roadway/Trails and Public Amenities/Administrative): $27,200,000 Portion of SH26 utility relocations:-$3,562,388 Glade Road Project: -$1,951,394 Remaining balance Infrastructure Improvements category *$21,686,218 Available cash balance 9/30/2015:$6,703,376 *Balance of Glade Road project could come from this category Questions and Discussion