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Home My WebLink AboutTax Increment Finance (TIF)-Agenda Packets-07/31/2019City 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, July 31, 2019 12 Noon Executive Conference Room Third Floor, City Hall 1.CALL TO ORDER 2.CONSENT: READING AND PUBLIC HEARING RESOLUTION R1901 2a Approval of the July 30, 2018 Tax Increment Financing District Board Meeting Minutes 2b Approval of the January 24, 2019 Tax Increment Financing District Board Meeting Minutes 3.PRESENTATION AND DISCUSSION 3a 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, July 26, 2019 by 5:00 p.m. Christine Loven, TRMC City Secretary A quorum of the Colleyville City Council and/or any other Colleyville Board, Commission, or Committee may be in attendance at this meeting. 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-19-01 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 31, 2019. 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 July 30, 2018 are hereby approved. Sec. 2.THAT the minutes of the Tax Increment Financing District Board of Directors meeting held January 24, 2019 are hereby approved AND IT IS SO RESOLVED. APPROVED BY A VOTE OF ___ AYES, NAYS, AND ABSTENTIONS ON THIS THE 31ST DAY OF JULY 2019. ATTEST: COLLEYVILLE TAX INCREMENT FINANCING DISTRICT BOARD Christine Loven, TRMC Richard Newton City Secretary Chairman 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 2a Agenda Date 7/31/2019 Number Type Resolution Department City Secretary Title Approval of the July 30, 2018 Tax Increment Financing District Board Meeting Minutes Strategic Plan Explanation Attachments 1.July 30, 2018 TIF Minutes 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 Monday, July 30, 2018 12 Noon Executive Conference Room Third Floor, City Hall 1.CALL TO ORDER The Tax Increment Financing District Board of Directors meeting was called to order by Chairman Richard Newton on July 30, 2018, at 12:00 p.m. ROLL CALL: Chairman Richard Newton and Directors George Dodson, Kathy Wheat, Bobby Lindamood, Tammy Nakamura, John Eubanks, and Mark McClendon. ABSENT: Directors Scott Rule and Rebecca Barksdale ALSO PRESENT: Assistant City Manager Adrienne Lothery, Assistant City Manager Mark Wood, Chief Financial Officer Shereen Gendy, and City Secretary Christine Loven. 2.CONSENT: READING AND PUBLIC HEARING- RESOLUTION R-18-01 2a Approval of the July 24, 2017 Tax Increment Financing District Board Meeting Minutes 2b Approval of the January 31, 2018 Tax Increment Financing District Board Meeting Minutes Chairman Newton read Resolution R-18-01 in its entirety. Mayor Newton opened the public hearing at 12:01 p.m. There was no one present wishing to speak and Mayor Newton closed the public hearing at 12:02. Director Dodson made a motion to approve Resolution R-18-01, Director Nakamura seconded the motion. The motion to approve carried by the following vote: Aye: 7 - Chairman Richard Newton and Directors George Dodson, Kathy Wheat, Bobby Lindamood, Tammy Nakamura, John Eubanks, and Mark McClendon. Absent: 2 - Directors Scott Rule and Rebecca Barksdale City of Colleyville Page 2 Tax Increment Finance District MINUTES July 30, 2018 Assistant City Manager Adrienne Lothery had begun the review of the TIF when Chairman Newton was advised audio and video was lost. There was a pause in the meeting until 12:15 p.m. At 12:15 p.m. the meeting was resumed, and Chairman Newton recapped the roll call, vote on Consent Resolution R-18-01, and asked Assistant City Manager Lothery to resume. 3.PRESENTATION AND DISCUSSION 3a Review and discuss the status of the Colleyville Tax Increment Financing District Assistant City Manager Adrienne Lothery presented this item and answered questions of the Board. Manager Lothery stated the TIF was created by Chapter 311 of the Texas Tax Code, to accelerate commercial development in an underdeveloped area, or to renovate existing blighted development in an area, in a specific geographic zone. The TIF entities contribute ad valorem taxes received from the incremental value increase on property within the zone, which provides for debt issuance for infrastructure improvements within the zone. Manager Lothery reviewed the history of the TIF and stated the TIF will expire in 2030. She then reviewed the taxable values, noted though there are five partners in the TIF, only the City of Colleyville, GCISD, and Tarrant County College are contributing, as Tarrant County and Tarrant County Hospital District reached their committed participation levels in fiscal year 2012. Manager Lothery gave highlights of the FY2018 timeline, FY2017 Revenues, project plans, and the Five Year Plan. She further reiterated to the Board the 2011 TIF refunding bonds were refunded in 2016, resulting in a savings of $95,000, and the 2016 bonds did not extend the debt, which will allow the TIF debt to be paid off in 2020. Manager Lothery made reference to the 5-year plan working draft which was shared at the January 2018 meeting and noted with input from the entities, she expects to update the plan each year, through the TIF expiration in 2030. There was general discussion of the TIF grants, the City’s beautification efforts, construction projects, and the possibility of an Entrepreneur Center. The Board thanked Manager Lothery for the update. 4.ADJOURNMENT There being no further business before the Tax Increment Financing District Board, Chairman Newton adjourned the meeting at 1:02 p.m. City of Colleyville Page 3 Tax Increment Finance District MINUTES July 30, 2018 APPROVED BY A VOTE OF _ AYES, _ NAYS, AND _ ABSTENTIONS, ON THIS THE 31ST DAY OF JULY 2019. Minutes taken and prepared by: Christine Loven, TRMC 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 2b Agenda Date 7/31/2019 Number Type Resolution Department City Secretary Title Approval of the January 24, 2019 Tax Increment Financing District Board Meeting Minutes Strategic Plan Explanation Attachments 1.TIF Minutes 1-24-2019 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 Thursday, January 24, 2019 12:00 p.m. Executive Conference Room Third Floor, City Hall The Tax Increment Financing District Board of Directors meeting was called to order by Chairman Richard Newton on January 24, 2019, at 12:06 p.m. ROLL CALL: Chairman Richard Newton and Directors George Dodson, Kathy Wheat, Bobby Lindamood, Tammy Nakamura, John Eubanks, and Mark McClendon. ABSENT: Directors Scott Rule and Rebecca Barksdale ALSO PRESENT: City Manager Jerry Ducay, Assistant City Manager Adrienne Lothery, Assistant City Manager Mark Wood, Accounting Manager Karen Hines, and Assistant to the City Secretary Keera Seiger 2. PRESENTATION AND DISCUSSION 2a Review and discuss the status of the Colleyville Tax Increment Financing District Manager Lothery presented Item 2a, which included a review of the original and amended project plans, expenditures to-date, a Five-Year working plan, and answered questions of the Board. Chairman Newton stated he has received questions from residents regarding Glade Road, and noted $1.6 million has been the total amount spent on everything done up to this point on Glade Road. Extra effort and time was spent on Glade Road to get it done in a way that satisfies all citizens’ issues the City is aware of, so everyone is happy. At the request of Mayor Newton, Manager Ducay explained the BEST Program is an improvement program for businesses in Collevyille, whereby a business makes tangible improvements to the exterior and/or interior of their building, that are taxable benefits, which result in the business valuation increasing. The program incentivizes Colleyville businesses to make improvements, and matches funding up to $30,000. On the extreme end, the City also provides up to $100,000 for businesses that completely tear down and rebuild their buildings when their buildings no longer serve their purpose. Mayor Newton and Manager Ducay mentioned businesses that have or will soon take advantage of the BEST Program, which include Loveria Caffe, Lilium Florals, an auto body shop, and The Londoner. City of Colleyville Page 2 Tax Increment Financing District MINUTES - DRAFT January 24, 2019 Director McClendon asked if the TIF Board could consider discussing incentive requests larger than $20,000 prior to their approval, to which Manager Ducay replied traditionally the discussion is part of the budget process, which can move rather quickly at times, and calling a meeting for smaller requests could become onerous, but keeping all TIF members updated with regular notifications would be a good idea and he has no problem with meeting to discuss larger incentive requests. Manager Ducay stated all incentive requests go before City Council for final consideration and approval. There was further discussion regarding calling meetings for the ability to discuss large incentive requests over a certain threshold, giving notification to the TIF Board, Colleyville residents, and TIF rules and procedures. 3. ADJOURNMENT There being no further business before the Tax Increment Financing District Board, Chairman Newton adjourned the meeting at 12:54 p.m. APPROVED BY A VOTE OF_ AYES, _ NAYS, AND _ ABSTENTIONS, ON THIS THE 31ST DAY OF JULY 2019. Minutes taken and prepared by: Keera Seiger Assistant to the City Secretary Annual Board Meeting City of Colleyville TIF Board July 31, 2019 Background: Purpose of a TIF •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 •Entities contribute ad valorem taxes received from the incremental value increase on property within the zone •Provides for debt issuance for infrastructure improvements within the zone TIF Map 1998 TIF #1 created 2012 TIF #1a added 2030 TIF expires Background: FY 2019 Timeline Dates Action Summer 2018 Taxing entities adopt a tax rate for FY 2019 July 25, 2018 TAD certifies AV values for FY 2019 December 2018 City of Colleyville submits annual report for Fiscal Year ended Sept. 30, 2018 (FY 2018) –due 90 days after FYE January 2019 TIF Board meeting –Update on Financial Position & 5-Year Working Plan March 2019 Final Updates to 2018 AV values received from TAD; City of Colleyville invoices TIF partners for FY 2019 May 1, 2019 FY 2019 TIF payments due July 2019 Annual TIF Board meeting -in July per bylaws TIF Taxable Value Update 1998 Taxable Base Value:$75,821,735 2017 Taxable Value (2/26/18):$442,248,745 2018 Taxable Value (2/26/19):$470,308,215 Incremental Value Increase:$394,486,480 2018 New Construction (2/26/19):$4,264,653 Expanded TIF Area Base Value:$30,796,078 2017 Taxable Value (2/26/18): $39,918,884 2018 Taxable Value (2/26/19): $42,820,755 Incremental Value Increase:$12,024,677 2018 New Construction (2/26/19):$0 TIF Participation Entity Rate Still Participating? City of Colleyville 100%YES Grapevine Colleyville ISD 100% M&O*YES Tarrant County 100%**NO -$4.35M cap reached in 2012 Tarrant County College District 100%YES Tarrant County Hospital District 100%***NO -$3.85M cap reached in 2012 * 74% dedicated to $27 million in general public improvements and remaining 26% dedicated to GCISD school improvements Outstanding Debt SERIES 2016 TAX INCREMENT REVENUE AND REFUNDING BONDS FISCAL YEAR PRINCIPAL INTEREST TOTAL INTEREST RATE 2019 $625,000 $28,725 $653,725 3% 2020 $645,000 $9,675 $654,675 3% TOTAL $1,270,000 $38,400 $1,308,400 Project Plans Original Project Plan Downtown Improvements Plaza Professional Services Public Parking, land, engineering Storm Drainage Library Hall-Johnson Road Bluebonnet Drive SH 26 Tinker/Sanders Intersection Bogart Church Street Riverwalk Drive Public Parking Structure Main Street City Hall Fire Station John McCain Road School Improvements Amended Project Plan Economic Development TIF Grants Roadway Improvements Trails & Public Amenities Administrative Expenses Notes: •All $ projections for project costs are estimates and are not a limitation •Revenue from ISD participation may not be used on any project category added by the 2012 amendment •Only revenue from City participation can be used on TIF Grants category 5-Year Plan •January 2018 TIF Board meeting -shared first 5-year Working Plan •Continue to update plan 2x each year to share at January and July TIF Board meetings •July 2019 TIF Board meeting -current Work Plan now forecasts revenue for all remaining years (through TIF expiration on 12/31/30) TIF Project Highlights Colleyville Plaza Base Bid: $2,468,693 Add/Alt Bid: $305,854.50 Total Bid: $2,774,547.50 Completion:Mid-November SH26 Corridor Glade Road Glade Road (Colleyville Boulevard to Pool Road): Summer 2019 -Complete the final design (plans are at 90%), complete land acquisitions, coordinate with the various franchise utilities Summer/Fall 2019 -Utility relocations (9 Months +/-) Winter 2019/2020 –Bidding Phase and Contract Award Summer 2020 –Anticipate Construction Summer 2021 –Construction complete Colleyville Business Center Questions & Discussion TIF 5 YEAR WORKING PLAN July 2019 Original Project Plan Grants Category Roadway Improvements Trails & Public Amenities Admin. Expenses TOTAL Amended Project Plan Estimated 10/1/18 Available Balances 13,552,502$ 7,359,233$ FY 2019 Central Fire Station Capital Improvements & Repairs 147,322$ -$ -$ -$ -$ Senior Center Improvements 50,000 Cheek-Sparger Road (San Bar to Brown Trail) - Design 420,000 Glade Road (Phase 2-SH26 to Pool) - Design 150,000 Glade Road median improvements 50,000 Roberts Road - Design 181,268 Roberts Road - ROW Acquisition 50,000 City Hall Automatic Doors 102,000 City Hall Parking Lot Improvements 80,000 City Hall - Backup Generator 215,000 Plaza / City Hall Traffic Re-route - Terra Cotta Way Expansion 61,000 TIF Debt Payment 653,725 Fiber Project 300,000 SH26 Water/Wastewater Conflicts 250,000 SH26 Signal and Roadway Improvements 115,000 SH26 ROW maintenance during reconstruction 25,000 Economic Development Grants 500,000 Entrepreneur Center 100,000 Land Acquisition / Public Parking / Downtown Improvements 600,000 Stormwater Master Plan 500,000 Plaza at City Hall & City Hall entryway 2,774,548 John McCain Road - Roundabout improvements (landscape)50,000 John McCain Road & Westcoat Drive Roundabout - Design 66,511 Glade Road & Pool Roundabout improvements (landscape)50,000 5,940,106$ 600,000$ 851,268$ 100,000$ -$ 1,551,268$ (+) FY19 Revenue 4,039,074 1,800,000 Estimated 10/1/19 Available Balances 11,651,470$ 7,607,965$ FY 2020 SH26 Improvements 9,000,000$ SH26 ROW maintenance during reconstruction 25,000 Main Street (at SH26) Median Improvements 50,000 Wayfinding Signs to Downtown & Street Furniture 350,000 Construction of Parking Facility at Central Fire Station 125,000 Rehabilitate the Historic Fire Station 234,000 Drainage Improvements 150,000 John McCain Road & Westcoat Drive Roundabout - Construction 800,000 Recreation Center - Design 500,000 Annual Sidewalk/Trail Construction/Grant Match 100,000$ Economic Development Grants 2,000,000$ Entrepreneur Center 200,000 City Hall/Library - HVAC Replacement 327,600 Cheek-Sparger Road (San Bar to Brown Trail) - Construction 1,328,000 Cheek-Sparger Trail 400,000$ Roberts Road - Construction 2,100,000 Glade Road (Phase 2 - SH26 to Pool) - Construction 2,240,103 Trail - Little Bear Creek connection of CNC to Sparger Park 750,000 Land acquisition 4,000,000 TIF Debt Payment 654,675 16,966,275$ 2,200,000$ 5,668,103$ 500,000$ -$ 8,368,103$ (+) FY20 Revenue 4,241,028 1,890,000 Estimated 10/1/20 Available Balances (1,073,778)$ 1,129,862$ FY 2021 City Hall - Flooring Rehab 88,000$ SH26 Improvements 4,000,000 Annual Sidewalk/Trail Construction/Grant Match 100,000$ Drainage Improvements 100,000 Downtown Improvements- Creation of riverwalk area 500,000 Justice Center 200,000 Glade Road (Phase 2 - SH26 to Pool) - Construction 3,000,000 7,200,000 Land acquisition - Recreation Center Construction 3,000,000 1,000,000$ Entrepreneur Center 100,000 Economic Development Grants 400,000 10,888,000$ 500,000$ 7,200,000$ 1,100,000$ -$ 8,800,000$ (+) FY21 Revenue 4,453,079 1,984,500 Estimated 10/1/21 Available Balances (7,508,699)$ (5,685,638)$ TIF 5 YEAR WORKING PLAN July 2019 Original Project Plan Grants Category Roadway Improvements Trails & Public Amenities Admin. Expenses TOTAL Amended Project Plan FY 2022 Library - Flooring Rehab 95,500$ Annual Sidewalk/Trail Construction/Grant Match 100,000$ Drainage Improvements 500,000 Land acquisition 2,000,000 Recreation Center Construction 2,000,000 2,000,000$ Entrepreneur Center 100,000 Economic Development Grants 300,000 4,595,500$ 400,000$ -$ 2,100,000$ -$ 2,500,000$ (+) FY22Revenue 4,675,733 2,083,725 Estimated 10/1/22 Available Balances (7,428,466)$ (6,101,913)$ FY 2023 Land acquisition 3,000,000 Storm Drainage Improvements 1,000,000 Annual Sidewalk/Trail Construction/Grant Match 100,000$ Drainage Improvements 150,000 Entrepreneur Center 100,000 Economic Development Grants 400,000 4,150,000$ 500,000$ -$ 100,000$ -$ 600,000$ (+) FY23Revenue 4,909,520 2,187,911 Estimated 10/1/23 Available Balances (6,668,946)$ (4,514,002)$ FY 2024 Land acquisition 3,000,000 Storm Drainage Improvements 1,000,000 Annual Sidewalk/Trail Construction/Grant Match 100,000$ Drainage Improvements 150,000 Entrepreneur Center 100,000 Economic Development Grants 400,000 4,150,000$ 500,000$ -$ 100,000$ -$ 600,000$ (+) FY24Revenue 5,154,995 2,297,307 Estimated 10/1/24 Available Balances (5,663,951)$ (2,816,695)$ FY 2025-2030 (+) FY25Revenue 5,412,745 2,412,172 (+) FY26Revenue 5,683,383 2,532,781 (+) FY27Revenue 5,967,552 2,659,420 (+) FY28Revenue 6,265,929 2,792,391 (+) FY29Revenue 6,579,226 2,932,010 (+) FY30Revenue 6,908,187 3,078,611 Estimated 10/1/30 Available Balances 24,244,884$ 10,512,079$ *Expires December 31, 2030 (before payments for FY2031 would occur) Note: Will need to discuss how last year is pro-rated or not Assumes 5% growth in annual TIF AV revenue