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Home My WebLink AboutTax Increment Finance (TIF)-Agenda Packets-7/16/2013City 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 Tuesday, July 16, 2013 4:00 p.m. Executive Conference Room Third Floor, City Hall 1. CALL TO ORDER 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 RESUME REGULAR MEETING 3. EXECUTIVE SESSION: CONSIDER AND TAKE ANY ACTION(S) NECESSARY RELATIVE TO ITEMS DISCUSSED IN EXECUTIVE SESSION - Resolution R- 13-01 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 5. PRESENTATION AND DISCUSSION 5a Presentation of the Annual Tax Increment Financing District Report 5b Review and discuss the status of the Colleyville Tax Increment Financing District 6. ADJOURNMENT I hereby certify this agenda was posted on City Hall bulletin boards Friday, July 12, 2013, by 5:00 p.m. Tax Increment Finance District Agenda July 16, 2013 City of Colleyville Page 2 Amy Shelley 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. 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 2 Agenda Date 07/16/2013 Type Executive Session Department City Manager Title 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 Attachments RESOLUTION R-13-02 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 November 20, 2012. 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 16TH DAY OF JULY 2013. COLLEYVILLE TAX INCREMENT FINANCING DISTRICT BOARD David Kelly Chairman ATTEST: Amy Shelley City Secretary 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, November 20, 2012 3:00 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 November 20, 2012, at 3:04 p.m. ROLL CALL: Vice Chairman Mike Taylor, Directors Michael Muhm, Carol Wollin, Tom Hart, Mark McClendon, Carolyn Sims and John Eubanks were present. Chairman David Kelly, City Manager Jennifer Fadden, Assistant City Manager and Chief Financial Officer Terry Leake, Economic Development Director Marty Wieder, City Attorney Matthew Boyle, and City Secretary Cynthia Singleton were also present. Director Scott Rule was absent. Chairman Kelly stated agenda items 4a and 5a will be considered first and second, respectively, and, subsequently, the Tax Increment Financing District Board will convene Executive Session. 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 551.072 - Real Estate - Deliberate the purchase, exchange, lease, or value of real property for City facilities Section 551.087 - Economic Development - Discuss or deliberate negotiations relating to any economic development negotiations Chairman Kelly explained the Executive Session had been called in accordance with the Texas Government Code, Chapter 551, Subchapter D, Section 551.071, Legal, Section 551.072, Real Estate, and Section 551.087, Economic Development. He further explained there would be no decisions made or action taken during this time. The Executive Session was adjourned at 4:31 p.m. Tax Increment Finance District Minutes - Draft November 20, 2012 City of Colleyville Page 2 3.EXECUTIVE SESSION: CONSIDER AND TAKE ANY ACTION(S) NECESSARY RELATIVE TO ITEMS DISCUSSED IN EXECUTIVE SESSION - Resolution R- 12-02 Chairman Kelly read Resolution R-12-02 in its entirety. Chairman Kelly opened the public hearing. There was no one present wishing to speak and Chairman Kelly closed the public hearing. Vice Chairman Taylor moved to approve Resolution R-12-02. Director Wollin seconded the motion. The motion carried by the following vote: Aye: David Kelly, Mike Taylor, Michael Muhm, Carol Wollin, Tom Hart, Mark McClendon, Carolyn Sims, John Eubanks Absent: Scott Rule 4. CONSENT: READING AND PUBLIC HEARING - Resolution R-12-03 4a Approval of the minutes of the Tax Increment Financing District Board of Directors meeting of July 17, 2012 Chairman Kelly read Resolution R-12-03 in its entirety. Chairman Kelly opened the public hearing. There was no one present wishing to speak and Chairman Kelly closed the public hearing. Director Wollin moved to approve Resolution R-12-03. Director Hart seconded the motion. The motion carried by the following vote: Aye: David Kelly, Mike Taylor, Michael Muhm, Carol Wollin, Tom Hart, Mark McClendon, Carolyn Sims, John Eubanks Absent: Scott Rule Tax Increment Finance District Minutes - Draft November 20, 2012 City of Colleyville Page 3 5. RESOLUTION(S): READING AND PUBLIC HEARING 5a Resolution R-12-04 Approval of a resolution amending Resolution R-03-03; approving an amended Project Plan and enlarging the boundaries of Tax Increment Reinvestment Zone Number One, City of Colleyville, Texas Chairman Kelly read Resolution R-12-04 in its entirety. Mr. David Pettit, Bennett, Benner, Pettit Architects and Planners, provided an explanation of a Tax Increment Financing (TIF) District and an overview of the Colleyville TIF District, including the TIF assessed value, history, and current status. Mr. Pettit also reviewed the impact of the proposed amendments to the TIF District and the potential TIF projects. Chairman Kelly opened the public hearing. There was no one present wishing to speak and Chairman Kelly closed the public hearing. Director McClendon spoke regarding Tarrant County College’s position regarding the proposed amendments, and stated consideration of the proposed resolution is in the purview of the Tarrant County Board of Trustees. Mr. Pettit spoke regarding the taxing entities participation in the TIF, structure of the TIF and TIF revenue projections. Discussion ensued regarding participation of Tarrant County College, the process for determining entity participation and potential growth of the TIF. Chairman Kelly moved to approve Resolution R-12-04. Vice Chairman Taylor seconded the motion. The motion carried by the following vote: Aye: David Kelly, Mike Taylor, Michael Muhm, Carol Wollin, Tom Hart, Carolyn Sims, John Eubanks Nay: Mark McClendon Absent: Scott Rule Mayor Kelly recessed the regular meeting at 4:00 p.m. and reconvened at 4:32 p.m. Tax Increment Finance District Minutes - Draft November 20, 2012 City of Colleyville Page 4 6. ADJOURNMENT There being no further business before the Tax Increment Financing District Board, Chairman Kelly adjourned the meeting at 4:45 p.m. APPROVED BY A VOTE OF ________ AYES, ________ NAYS, AND ________ ABSTENTIONS, ON THIS THE ________ DAY OF _______________________ 2013. Minutes taken by: Cynthia Singleton, TRMC, CMC, City Secretary Minutes 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 5a Agenda Date 07/16/2013 Number 5a 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 2012. Attachments 1.Fiscal Year 2012 Annual Tax Increment Financing District Report TIF REPORT - CITY OF COLLEYVILLE FISCAL YEAR ENDED SEPTEMBER 30, 2012 TAX YEAR 2011 / FISCAL YEAR 2012 TAXABLE VALUE $313,590,053 1998 BASE VALUE $75,821,735 INCREMENTAL VALUE INCREASE $237,768,318 REVENUES: TAX INCREMENT REVENUES - CITY OF COLLEYVILLE $846,217 GRAPEVINE COLLEYVILLE ISD -NET PAYMENT ^$1,748,249 GRAPEVINE COLLEYVILLE ISD **$759,954 TARRANT COUNTY $222,600 TARRANT COUNTY COLLEGE DISTRICT $355,267 TARRANT COUNTY HOSPITAL DISTRICT $378,601 TOTAL $4,310,889 ^ TOTAL PAYMENT FROM GCISD IS $2,362,499.23 AND 26% OF THE PAYMENT ($614,249.80) IS RETURNED TO GCISD PER CONTRACT FOR A NET TOTAL OF $1,748,249.43 ** THIS IS A SUPPLEMENTAL PAYMENT FOR TAX YEAR 2010 FOR DIFFERENCE IN ACTUAL TAX RATE AND $1.47 TAX RATE EXPENDITURES: SERIES 2002 BOND PAYMENT*$41,000 SERIES 2011 BOND PAYMENT $639,950 TIF AGREEMENT PAYMENT - VILLAGE AT COLLEYVILLE $97,862 TOTAL $778,812 * THESE BOND ISSUES WERE REFUNDED IN FY 2011 DEBT SERVICE SCHEDULE SERIES 2011 TAX INCREMENT REVENUE AND REFUNDING BONDS FISCAL PRINCIPAL INTEREST TOTAL YEAR 2013 $540,000 $139,650 $679,650 2014 $555,000 $128,700 $683,700 2015 $565,000 $114,675 $679,675 2016 $585,000 $97,425 $682,425 2017 $600,000 $79,650 $679,650 2018 $615,000 $61,425 $676,425 2019 $640,000 $39,400 $679,400 2020 $665,000 $13,300 $678,300 TOTAL $4,765,000 $674,225 $5,439,225 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 5b Agenda Date 07/16/2013 Number 5b 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 2013 status of the Colleyville Tax Increment Financing (TIF) District. Attachments 1.Colleyville Tax Increment Financing District - Fiscal Year 2013 update Colleyville Tax Increment Financing District Fiscal Year 2013 Update July 16, 2013 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 2013 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 2013 TIF Taxable Value Recap FY1998 Taxable Base Value: $75,821,735 FY2013 Taxable Value: $327,030,225 Incremental Value Increase: $251,208,490 FY2013 New Construction: $8,102,537 Expanded TIF Area Base Value: $30,796,078 Colleyville TIF District Commitments •Outstanding Bond Issues: Series 2011: $4,759,575 (Balance at September 30, 2013) •*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 Value: $52,351,948 •Incremental Increase: $49,358,889 •Village at Colleyville Value: $41,482,409 •Incremental Increase: $38,341,270 FY2013 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 Current Financial Status of the Colleyville TIF* Cash balance of TIF 9/30/12*: $7,883,448 (*excludes City contributions) 2013 Revenue (includes $753,495 GCISD payment):$2,978,554 Portion of SH26 utility relocations: -$3,134,844 Glade Road design: -$818,039 2013 debt service: -$679,650 Available cash balance of TIF 6/30/13: $6,229,469 Remaining commitments: Town Center Agreement: -$310,869 Village Agreement: -$2,219,958 Tinker/Sanders Intersection Improvement: -$220,000 Total uncommitted available funds*: $3,478,602 Current Financial Status of the Colleyville TIF Grant Funds Total City contributions to TIF as 9/30/12: $6,383,379 2013 City contribution: $894,051 Economic Development TIF grant Village Park: -$2,250,000 Total TIF Grant funds available: $5,027,430 Questions and Discussion