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HomeMy WebLinkAboutTIF1 1998-12-16 AgendasREINVESTMENT ZONE NUMBER 1, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING WEDNESDAY, DECEMBER 16, 1998 NRH CITY HALL PRE-COUNCIL ROOM 11:30 a. m. AGENDA 1. Call to Order 2 Consider Approval of Minutes of the October 20, 1998 Board Meeting (attachment) 3. TIF 98-2.3-Elect Board Vice Chairman & Secretary 4. Review TIF 98-2.4 and accept Tarrant County, Tarrant County Hospital District and Tarrant County Junior College District Agreements to Participate in the TIRZ District 5. Receive Update on Status of Drainage Project Implementation (attachment) 6. Review Status of Richland Business Centre (Richland Plaza) Renovations (attachment) 7. Schedule January Meeting to Review Final Agreements/Arrangements for Construction of the TIRZ Project and all Major Construction Contracts Necessary to Complete Project Construction Adjourn POSTED Date 1- fi ', C~ G Q u~-U Time City Secretary CITY OF N~3RTH RICHLAND HILLS Office of the City Manager December 4, 1998 The Tax Increment Reinvestment Zone Board's second meeting is scheduled- ON: Wednesday, December 16, 1998 AT: 11:30 a.m. (Lunch will be Served) IN: North Richland Hills' Pre-Council Room 7301 N.E. Loop 820 Board members will review actions by the participating taxing jurisdictions on Agreements between the City and the three Tarrant County entities-as well as elect the remaining Board officers. City staff will also brief the Board on the status of the drainage project design and the renovation of Richland Plaza. As we anticipated in October, however, it appears we will have to reconvene the Board in January to review final agreements and arrangements for construction of the TIRZ project, as well as all major contracts necessary to complete project construction. We look forward to seeing you on December 16. Please call Marty Wieder (581- 5534) if you have any questions or need additional information. Sincerely, Larry J. Cunningham City Manager/TIRZ Manager LJC/pb P.O. Box 820609 * North Richland Hills, Texas * 76182-0609 7301 Northeast Loop 820 * 817-581-5504 • FAX 817-581-5516 REINVESTMENT ZONE NUMBER 1, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING OCTOBER 20, 1998 MINUTES Attendance: Acting Chairman Charles Scoma, Mayor, City of North Richland Hills Dr. Larry Darlage, President, Tarrant County Junior College Northeast Campus Cheryl Lyman, Councilwoman, City of North Richland Hills Frank Metts, Councilman, City of North Richland Hills Dr. Matt Milano, Councilman, City of North Richland Hills Lyle Welch, Councilman, City of North Richland Hills Jane Sanford, Precinct 3 Administrator, Tarrant County Dolores Webb, Trustee, Birdville Independent School District Drenda Witt, Director of Public Relations, Tarrant County Hospital District Staff/Guests: Larry Cunningham, City Manager, City of North Richland Hills David Brewer, Associate Superintendent, Finance, Birdville ISD David Medanich, Financial Advisor, First Southwest Company Larry Koonce, Director of Finance, City of North Richland Hills Marty Wieder, Director of Economic Development, City of North Richland Hills North Richland Hills Mayor Charles Scoma called the meeting to order at 11:42 p.m. and asked members to introduce themselves. 2. North Richland Hills City Manager Larry Cunningham presented an overview of the draft Bvlaws, pointing out that the Bylaws must also go to the NRH City Council for approval since North Richland Hills is ultimately responsible for the bonds to be funded by the TIF. Dolores Webb asked whether the last paragraph of Article IV, Section 2 stipulating that the City Council could amend the Bylaws at any time was directly from State law. Marty Wieder noted that the proposed wording was mirrored after two similar agreements prepared by other North Texas municipalities. Larry Cunningham confirmed that any changes to the Bylaws would come to the Board first. Upon a motion by Ms. Webb and second by Matt Milano, Board members unanimously voted to recommend City Council approval. 3. Larry Koonce reviewed the Preliminary Financing Plan, explaining how the base value and any additional personal property values would not be included in the TIRZ fund. He also noted that the Zone would have not taxing powers, but that each entity would generate and contribute the tax increment into the fund. Mr. Koonce distributed a chart projecting fund revenues-with an estimated payoff in 10 years. He noted that the bonds can be paid off anytime after 2008. Any surplus would be rebated back to the participating entities, but not until the bonds are retired and the zone is eliminated. David Medanich confirmed that the law would allow the Board to disassemble the Zone upon payoff of bonds. Mr. Scoma pointed out that the revenue estimates are very conservative, and therefore the bonds may can be retired even earlier. He asked what would happen with the excess. Mr. Medanich noted that the Board could create an escrow and do a defeasance. He will check with Ed Esquivel of Fulbright Jaworski about the details of such an action to disassemble the zone. Dr. Milano asked whether BISD's situation with the State would cause the Board any problems, and members discussed the possibilities. Mr. Koonce and Mr. Medanich agreed that it is likely this and other TIFs will be grandfathered if the law is changed to prohibit school district participation. Mr. Cunningham reminded members that in the worst case, the bonds could be paid off in 20 years. Nevertheless, City staff believe it can be paid in 10 years and possibly as soon as 8. Mr. Scoma and Ms. Webb pointed out that the City and BISD have spoken with the Governor and State Secretary of Education, and they don't expect this issue to be a problem. Upon a motion by Cheryl Lyman and a second by Ms. Webb, Board members unanimously approved the Preliminary Financial Plan and recommended its approval by the NRH City Council. 4. Mr. Wieder presented the Preliminary Project Plan for Board consideration. He pointed out that much of the 42-acre site is in the FEMA flood way, which would limit Richland Business Centre's redevelopment-and any potential new development. The City's original $531,000 bond project would remove some of this water, but would be insufficient. City staff and representatives of Today Richland Center, LP agreed that the north channel option proposed by DiScuillo & Terry Consulting Engineers would be most effective-and least costly. With the subtraction of the City's $531,000, it would leave the TIRZ District with $1.34 million in costs. In terms of non-TIF project investment, Mr. Wieder reported that Richland Business Centre developers expect to spend a minimum of $5.65 million-which may be increased again later as the project develops. Mr. Scoma asked to see elevations of the planned project, which Mr. Wieder displayed. Mr. Scoma pointed out how the value of personal property may be substantially higher if much of the property does develop into office uses. Mr. Wieder noted that leasing agents believe the ratio of parking and presence of adjacent fiber optic lines will support such leases. Upon motion by Frank Metts and second by Lyle Welch, Board members unanimously approved the Preliminary Project Plan and recommended its approval by the NRH City Council. 5. Mr. Wieder discussed the Draft Agreement with the Birdville Independent School District to Participate in the Zone and the remaining steps necessary for zone creation. He referred Board members to the paragraph in Section I, Item A, which BISD provided to the City for inclusion in the Agreement. The paragraph addresses the need to allow BISD the flexibility to adjust its level of funding if revenues are ever counted against BISD's State funding formula. He further pointed out the second paragraph in the same section providing for BISD to document and report any such calculations to the TIRZ Board if it ever was necessary to adjust Birdville's calculations. Upon a motion by Ms. Webb and second by Ms. Lyman, Board members unanimously approved the Draft Agreement with BISD-and recommended its approval by the NRH City Council. Mr. Wieder distributed a schedule for the remaining steps for TIF Board implementation. Following some discussion on the need to adopt similar agreements with the County taxing entities, Mr. Wieder agreed to draft and submit similar agreements to each of their representatives for consideration before the Board meets again in December. Board members later agreed to schedule the December meeting for the 16'h rather than 17~', as previously proposed. 4 6. Since Mr. Wieder had reviewed the status of drainage project implementation and the Richland Business Centre (Richland Plazal renovations in earlier discussions, Mr. Scoma thanked all five entities for their participation, noting how the project will benefit every entity's funding. Having no further business, he adjourned the meeting at 12:40 p.m. CITY OF NORTH RICHLAND HILLS Department: Subject: Economic Development Election of Vice Chairman and Secretary Council Meeting Date: Agenda Number: 12/ 16/98 TIF 98-2.3 The North Richland Hills City Council approved the proposed Bylaws for Reinvestment Zone Number One, City Of North Richland Hills, Texas, on October 26-and appointed Mayor Charles Scoma as Board Chairman in November, in accordance with the Tax Increment Reinvestment Act. With the Bylaws now effective, Board members will be asked to elect the Board Vice Chairman and Secretary at your December 16 meeting. Article III, Section 3 stipulates that the Vice Chairman "shall be a member of the Board, shall have such powers and duties as may be assigned to him/her by the Board, shall exercise those powers and duties, and shall exercise the powers of the Chairman during that officer's absence or inability to act. Any action taken by the Vice Chairman in the performance of the duties of the Chairman shall be conclusive evidence of the absence or inability to action of the Chairman at the time such action was taken." Article III, Section 4 states that the Secretary "shall keep the minutes of all meetings of the Board in books provided for the purpose, he/she shall have charge of such books, records, documents and instruments as the Board may direct, all of which shall at all reasonable time be open to inspection, and he/she shall in general perform all duties incident to the office of the Secretary subject to the control of the City Council and the Board. According to Article III, Section 1, terms of office for these officials shall not exceed two years. RECOMMENDATION That the Board elect a Vice Chairman and Secretary for a term agreed upon by the Board. Finance Review Source of Funds: Bonds (GO/Rev,) Operating Budget Acct. Number Sufficient Funds Available Finance Drew De{~rtment Head Signature C1TY COUNCIL ACTION City rvlar~a~er Page 1 of CITY OF NORTH R/CHLAND HILLS Department: Economic Development Council Meeting Date: 12/16/98 subject: Review Tarrant County, Tarrant County Hospital District Agenda Number: TIF 98-2.4 I is rlc gr me To Participate in the TIRZ Attached for your review are copies of the three Agreements adopted by the Tarrant County Commissioners Court, the Tarrant County Hospital District and Tarrant County Junior College District stipulating their association and 100% participation in the Reinvestment Zone Number One, City of North Richland Hills. The North Richland Hills City Council was to consider approval of these same documents at its December 14 meeting. For the most part, each of these documents are identical to the Draft Agreement you recommended that North Richland Hills execute with the Birdville Independent School District when the Board met on October 20-certainly with the exception of the specific information inserted to provide for BISD's fiscal formula with the State of Texas. Nevertheless, Tarrant County Economic Development staff did add two items (see Section 1.d. and 1.f) and a number of subtitles to the Tarrant County and Hospital District agreements. NRH City Staff expected City Council to concur with the two items mandated as a result of Tarrant County's new TIF Policy Guidelines for Participation (also attached). RECOMMENDATION That the Board accept the three County agreements as written. Source of Funds: Bonds (GO/Rev - Operating Budge _ mentFi~ad Signature Acct. Number Sufficient Funds Available Flnana Dihtla ~~ '~~ City( Ma ager CITY COUNCIL ACT10N /T~M Page 1 of Finance Review J NOV-30-98 MON 12.03 PM HLMIN OFFICE FRX N0. 8 P, 06 r ~ ,~,~ cvi.:j'~... :~ ~--~. S y: r ., ~ ~` •' ~. TARRANT COUNTY R~so~uTxoN PART[CIPA'TION IN Cl'I'Y OF NORTH RICHLAND HILL5 RICHLAND PLA7.A TAX INCREMENT FINANCING DISTRICT' WHEREAS, the general laws of the State of Texas authorize governmental taxing entities to join other taxing jurisdictions in the establishment of a reinvestment zone under the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code (the "Act"), to provide incentive for the development and redevelopment of properties that might not be undertaken without such incenrtive; and WHEREAS, the North Richland Hills City Council approved an ordinance establishing Reinvestment Zone Number One, City of North Richland Hills, Texas, in accordance with the Tax IncremeTtt Financing Act, to promote the redevelopment of the Richland Plaza site in the City of North Richland Ilills through the use of tax increment financing; and WHEREAS, in accordance with the requirements of the Act, the North Richland Hills City Council has given all applicable notices to the Tarrant County Commissioners Court as to the City Council's establishment of the tax increment reinvestment zone and, through its appointed representatives, has made a formal presentation to the Tarrant County Commissioners Court regarding the reinvestment zone; and WH.EIZEAS, the County has appointed a representative to the North Richland Frills Tax ~ncremcnt Financing Reinvestment Zone Board of Directors and said representative has participated in the development and approval of the Project Plan and Financing plan; and WHEREAS, the Ciry of No~~th Richland Ylills City Council adopted the Financing Plan on October 26, 1998 and plans to adopt the Project Plan on December 14, 1498, as approved and submitted by the Reinvestment Zone Board of Directors; and WHEREAS, the Tarrant County Commissioners Court recosnizes that Tarrant County's participation in the creation of the tax increment reinvestment zone will have the desired effect of developing the area to the benefit of all taxing; units which levy taxes in the proposed reinrvestment zone. ~~, R NOV-30-98 MON 12,03 PM AGMIN OFFICE NOW, TREREFOKE, BE IT RESOLVED: hAh NU b r. u That the Tarrant County Commissioners Court hereby approves participation in the Richland plaza Tax Increment Financing District and the payment into the tax increment fund of 100% of its tax increment produced from property located in the reinvestment zone, in accordance with the teams of the attached Agreemenrt; that the Agreement be and is hereby approved; that the County and its Commissioners Court hereby agree to cuter into the Agreement as a party thereto; and the County judge of the County be and is hereby aulhorizcd and directed to execute said Agreement on behalf of the County and its Commissioners Court substantially in the form of the attached Exhibit A and carry out the terms thereof at the appropriate time(s). PASSED AND APPROVED, L'V OPEN COURT, this 1st day of December, 1998. COURT ORDER NO.~ Tam Vandergrifl; County nudge Dionne Bagsby Commissioner, Precinct 1 Glen Whitley Commissioner, Precinct 3 ATTEST: County Clerk Marti VanRavens~waay Commissioner, Precinct 2 J D. Johnson Commissioner, Precinct 4 APPROVED AS TO FORM: Asst. District Attorney ~:..>, NOU-30-98 MON 12 03 FM AGMIN OFFICE FAX NO ~ F Oi3 CITY OF NORTH RICHLAND HILLS AND TARRANT COUNTY AGREEMENT TO PARTICIPATE IN THE RICHLAND PLAZA TAX INCREMENT FINANCING DISTRICT THIS AGREEMENT TO PARTICIPATE IN REINVESTMENT ZONE NUMBER ONE, CITY OF NORTH RICHLAND HILLS (the `Agreement") is made and entered into by and between the City Of North Richland Hills, ("City"), a municipal incorporation and the Commissioners Court of Tarrant County, Texas ("County"}. WITNESSETH: WHEREAS, in accordance with the provisions of the Tax Increment Financing Act, V.T.C.A., Tax Code, Chapter 311, (the "Act"), and after due notice to the County and other taxing units levying real property taxes in the area, the City Council of the City, pursuant to Ordinance No. 2333 (the "OrdinanceU), adopted on September 14, 1998, created, established and designated °Reinvestment Zone Number One, City Of North Richland Hills, Texas" (hereinafter called the "Reinvestment Zone") under the Act; and WHEREAS, the Act provides that each taxing unit levying taxes on real property in a reinvestment zone may determine the portion of the tax increment produced that it will retain, if any, by notifying the Board of Directors of the Zone in writing of that percentage on or before the 60"' day after the date on which the governing body of the municipality approves the reinvestment zone financing plan as provided by Section 311.011 (d). Likewise, the governing body of a taxing unit may not decrease the portion of the tax increment that it has determined to dedicate to a reinvestment zone after the project plan is approved; and WHEREAS, the City desires to enter into an agreement with the County prior to the 60"' day after the City approves the reinvestment zone financing plan; and WHEREAS, a tax increment agreement under the Act may be entered into any time before or after the zone is created, and such agreement may include any conditions for payment of the tax increment into the fund and must specify the portion of the tax increment paid into the tax fund and the years for which that tax increment is to be paid inta the tax increment fund; and WHEREAS, the City and the County desire to enter into this Agreement. NOW, THEREFORE, the City and County, in consideration of the terms, conditions, and covenants contained herein, hereby agree as follows: NOV-30-98 MON 12,04 FM ADMIN OFFICE FAX NO B r. u~ Section 1, County Participation The County agrees to pay into the Tax Increment Fund 100% of taxes levied and collected against the captured appraised value of real property as determined in Section 311.012 of the Act, in said "Reinvestment Zone" subject to the following terms and conditions: a. The boundaries of the Reinvestment Zone are and shalt be those boundaries described in the Ordinance. b. Wrthin the boundaries of the Reinvestment Zone, amixed-use business center of 290,000 or more square feet of enc{osed office, manufacturing, retail, service and/or distribution space and other out parcel development is proposed to be constructed. c. The land within the boundaries of the Reinvestment Zone is to be appraised by the central appraisal district in 1998 for ad valorem tax purposes and for establishing the tax increment base referenced in Section 311.012 of the Act. d. The City shall contribute $531,000 toward the project above its scheduled TIF contribution, as outlined in the Project and Financing Plans. e. The total principal amount of bands issued to pay public improvement costs for the Reinvestment Zone pursuant to Section 311.015 of the Act shall not exceed Eight Hundred Fifty Thousand Dollars ($850,000) in present value 1998 funds. Total issuance costs will be approximately $8,500. The City wilt maintain its TIF contribution at the same tax race as when the District is initiated. Should the City tax rate be reduced at any time during the Irfe of the TIF, the City shall contribute additional funds from other sources in order to make its annual deposit equal to the tax increment produced at the City'S tax rate for the year in which the T{F was initiated. g. All amounts paid into the tax increment fund shalt be used solely to repay cash expenditures for project costs or the principal of and interest on bonds, notes or other evidence of indebtedness issued to finance project costs under the Act and generally accepted accounting principles to the administration of the Reinvestment Zone; however, in no evens shall any of the amounts paid into the tax increment fund be used to pay any overhead, administrative or management cost for time spent or services rendered with respect to the Project. 2 NOV-30-98 11ON 12 04 FM AuM I N OFFICE FAX NO i P. 10 Section 2. Payment Limitations. In accordance with Section 311.013 of the Act, the County shall not be required to pay tax increment into the tax increment fund of the Reinvestment Zone after three years from the date the Reinvestment Zone has been created unless: a. cash has been expended for the Reinvestment Zone under Section 311.015 of the Act to finance the Project, or b. construction of the Project pursuant to the project plan has begun in the Reinvestment Zone. Section 3. Participation Inducement. As inducement to the County to enter into this Agreement, the City agrees that no cash will be expended to construct the Zone Project until (a) a final project plan and financing plan has been prepared and adopted by the Board of Directors of the Reinvestment Zone and approved by Csty Council of the City and (b) the City has been furnished documentation and evidence satisfactory to the Board of Directors of the Reinvestment Zone and the City to the effect that all final agreements and arrangements for the construction of the Project have been completed and executed and alt major construction contracts necessary to complete the construction have been awarded. Section 4. Term• The term of this Agreement shall be for three years from the date the Reinvestment Zone was created, in accordance with Section 2, or until all cash expended for the Reinvestment Zone under Section 311.015 of the Act, or refunding bonds issued to refinance the bonds issued under Section 311.015 of the Act, have been fully paid and discharged, whichever event shall be the latest to occur. Section 5. Responsibility for.Acts. City and the County shall each be responsible for the sole negligent acts of their officers, agents, employees or separate contractors. In the event of joint and concurrent negligence of the City and County, responsibility, if any, shall be apportioned comparatively in accordance with the laws of the State of Texas, without, however, waiving any governmental immunity available to the City and County under Texas few and without waiving any defenses of the parties under Texas law. Section 6. Administration. This agreement shalt be administered by the City Manager or his designee(s). Section 7. Notice. Whenever this Agreement requires or permits any consent, approval, notice, request, proposal, or demand from one party to another, the consent, approval, notice, request, proposal or demand must be in writing to be effective and shelf be delivered to the party intended to receive it at the addresses shown below: 3 i NOU-30-98 110N 12 05 PM ADM I N OFFICE r Hi( NU 8 r ~ i If intended to the City or the Board, to: City Manager City Of North Richland Hills P.O. Box 820609 North Richland Hills, Texas 76182-0609 If intended for the County to: Administrator Tarrant County Commissioners Court 100 East Weatherford, Suite 404 Fort Worth, Texas 76196 Or to such other addresses as the parties may request, in writing, from time to lime. Section S. Governing Law and Venue This Agreement is made subject to the provisions of the Charter and ordinances of the City, as amended; the Texas Constitution, codes, and statutes; and all other applicable state and federal laws, regulation and requirements, as amended. Venue shall be exclusively in Tarrant County, Texas. Section 9. Binding Agreement This Agreement shall be binding upon, and shall inure to the benef+t of, the parties hereto and their respective successors and assigns. No third party shall have any rights herein. Section 10. ecution. This Agreement shall become a binding obligation on the parties upon execution by all parties. Each party hereto warrants and represents that the individual executing this Agreement on behalf of such party has full authority to executive this Agreement and bind such party to the same. This Agreement may be executed in one (1) or more counterparts, each of which shall be deemed an original and all of which taken together shall constitute one in the same agreement. Section 11. Entire _Agreement. This Agreement embodies the complete understanding of City and the County, superseding all oral or written previous and contemporary agreements between the parties relating to matters herein. This Agreement may be amended, modified, or supplemented only by an instrument in writing executed by City and County. Any alterations, additions or deletions to the terms of this Agreement required by d'tanges in federal, state or local law or regulations will be automatically incorporated into this Agreement without written amendment, and shall become effective on the date designated by such law or regulation. 4 ~.. , NG`~-30-98 MON 12 05 PM ADMIN OFFICE FAX N0. 8 EXECUTED this the day of 1998, by the City, signing by and through its City Manager, duly authorized by Resolution No. approved on 1998, and by the County, through its County Judge, duly authorized by Court Order No. APPROVED AS TO FORM: CITY OF NORTH RICHLAND HILLS Rex McEntire Larry Cunningham City Attorney City Manager TARRANT COUNTY District Attorney Tom Vandergriff County Judge ATTEST: City Secretary County Clerk 5 P 12 .: NUV-30-98 MuN 12 U1 PM A~M1N GFFIC~ FHn NU. d N ui T.A.~:RANT COIJ~N~'~Y~ ADIVIINISTRAT(JR' S OFFICE 100 E. Weatherford, Suite 404 Ft. Worth, Texas 76196-0609 (d17~8s~-173? Fax(811js8~-1701 DATE: f ~ ~ ~~ TIME: TO: /, ~ PHONE: ~(J FAX: FROM• ~ X6'1, n PHONE: FAX: (617} 884-1702 RE: ~',~ ~ ~~ CC: Number of pages including cover sheet: ~..._J !{you do not receive allp'ges, please caN (817) 884-732 IV~cssage: CITY OF NORTH RICHLAND HILLS AND TARRANT COUNTY HOSPITAL DISTRICT AGREEMENT TO PARTICIPATE IN REINVESTMENT ZONE NUMBER ONE TAX INCREMENT FINANCING DISTRICT THIS AGREEMENT TO PARTICIPATE IN REINVESTMENT ZONE NUMBER ONE, CITY OF NORTH RICHLAND HILLS (the "Agreement") is made and entered into by and between the City of North Richland Hills, ("City"), a municipal corporation, and the Board of Trustees of the Tarrant County Hospital District of Tarrant County, Texas ("TCHD"). WITNESSETH: WHEREAS, in accordance with the provisions of the Tax Increment Financing Act, V.T.C.A., Tax Code, Chapter 311, (the "Act"), and after due notice to TCHD and other taxing units levying real property taxes in the area, the City Council of the City, pursuant to Ordinance No. 2333 (the "Ordinance"), adopted on September 14, 1998, created, established and designated "Reinvestment Zone Number One, City of North Richland Hills, Texas" (hereinafter called the "Reinvestment Zone") under the Act; and WHEREAS, the Act provides that each taxing unit levying taxes on real property in a reinvestment zone may determine the portion of the tax increment produced that it will retain, if any, by notifying the Board of Directors of the Zone in writing of that percentage on or before the 60th day after the date on which the governing body of the municipality approves the reinvestment zone financing plan as provided by Section 311.011 (d). Likewise, the governing body of a taxing unit may not decrease the portion of the tax increment that it has determined to dedicate to a reinvestment zone after the project plan is approved; and WHEREAS, the City desires to enter into an agreement with TCHD prior to the 60th day after the City approves the reinvestment zone financing plan; and WHEREAS, a tax increment agreement under the Act may be entered into any time before or after the zone is created, and such agreement may include any conditions for payment of the tax increment into the fund and must specify the portion of the tax increment to be paid into the tax increment fund and the years for which that tax increment is to be paid into the tax increment fund. WHEREAS, the City and TCHD desire to enter into this Agreement. NOW, THEREFORE, the City and the Tarrant County Hospital District, in consideration of the terms, conditions, and covenants contained herein, hereby agree as follows: Section 1. TCHD Participation TCHD hereby agrees to pay 100% of the taxes levied and collected against the captured appraised value of real property as determined in Section 311.012 of the Act, in said "Reinvestment Zone Number one, City of North Richland Hills" subject to the following terms and conditions: a. The boundaries of the Reinvestment Zone are and shall be those boundaries described in the Ordinance. b. Within the boundaries of the Reinvestment Zone, amixed-use business center of 290,000 or more square feet of enclosed office, manufacturing, retail, service and/or distribution space, and other out parcel development is proposed to be constructed. c. The land within the boundaries of the Reinvestment Zone is to be appraised by the central appraisal district in 1998 for ad valorem tax purposes and for establishing the tax increment base referenced in Section 311.012 of the Act. d. The City shall contribute $531,000 toward the project above its scheduled TIF contribution, as outlined in the Project and Financing Plans. e. The total principal amount of bonds issued to pay public improvement project costs for the Reinvestment Zone pursuant to Section 311.015 of the Act shall not exceed Eight Hundred Fifty Thousand Dollars ($850,000) in present value 1998 funds. Total issuance costs will be approximately $8,500. f. The City will maintain its TIF contribution at the same tax rate as when the District is initiated. Should the City tax rate be reduced at any time during the life of the TIF, the City shall contribute additional funds from other sources in order to make its annual deposit equal to the tax increment produced at the City's tax rate for the year in which the TIF was initiated. g. All amounts paid into the tax increment fund shall be used solely to repay cash expenditures for project costs or the principal of and interest on tax increment bonds, notes or other evidence of indebtedness issued to finance project costs under the Act generally accepted accounting principles to the administration of the Reinvestment Zone; however, in no event shall any of the amounts paid into the tax increment fund be used to pay any overhead or administrative cost of City employees or officials for time spent or services rendered with respect to the Project. Section 2. Payment Limitations In accordance with Section 311.013 of the Act, TCHD shall not be required to pay tax increment into the tax increment fund of the Reinvestment Zone after three years from the date the Reinvestment Zone has been created unless: 2 a. cash has been expended for the Reinvestment Zone under Section 311.015 of the Act to finance the Project, or b. construction of the Project pursuant to the project plan has begun in the Reinvestment Zone. Section 3. Participation Inducement As inducement to TCHD to enter into this Agreement, the City agrees that no cash will be expended to construct the Zone Project until (a) a final project plan and financing plan has been prepared and adopted by the Board of Directors of the Reinvestment Zone and approved by the City Council of the City and (b) the City has been furnished documentation and evidence satisfactory to the Board of Directors of the Reinvestment Zone and the City to the effect that all final agreements and arrangements for the construction of the Project have been completed and executed and all major construction contracts necessary to complete the construction have been awarded. Section 4. Term The term of this Agreement shall be for three years from the date the Reinvestment Zone was created in accordance with Section 2, or until all cash expended for the Reinvestment Zone under Section 311.015 of the Act, or refunding bonds issued to refinance such bonds issued under Section 311.015 of the Act, have been fully paid and discharged, whichever event shall be the latest to occur. Section 5. Responsibili~r for Acts City and TCHD shall each be responsible for the sole negligent acts of their officers, agents, employees or separate contractors. In the event of joint and concurrent negligence of both City and TCHD, responsibility, if any, shall be apportioned comparatively in accordance with the laws of the State of Texas, without, however, waiving any governmental immunity available to City and TCHD under Texas law and without waiving any defenses of the parties under Texas law. Section 6. Administration This agreement shall be administered by the City Manager or his designees. Section 7. Notice Whenever this Agreement requires or permits any consent, approval, notice, request, proposal, or demand from one party to another, the consent, approval, notice, request, proposal or demand must be in writing to be effective and shall be delivered to the party intended to receive it at the addresses shown below: If intended for the City or the Board, to: City Manager City of North Richland Hills P.O. Box 820609 North Richland Hills, Texas 76182-0609 3 f ~, .:., If intended for TCHD, to: Chief Executive Officer Tarrant County Hospital District 1500 South Main Street Fort Worth, Texas 76104 Or to such other addresses as the parties may request, in writing, from time to time. Section 8. Governi~ Law and Venue This Agreement is made subject to the provisions of the Charter and ordinances of City, as amended; Texas constitution, codes, and statutes; and all other applicable state and federal laws, regulations and requirements, as amended. Venue shall be exclusively in Tarrant County, Texas. Section 9. Binding Agreement This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and assigns. No third party shall have any rights herein. Section 10. Execution This Agreement shall become a binding obligation on the parties upon execution by all parties. Each party hereto warrants and represents that the individual executing this Agreement on behalf of such party has full authority to execute this Agreement and bind such party to the same. This Agreement may be executed in one (1) or more counterparts, each of which shall be deemed an original and all of which taken together shall constitute one in the same agreement. Section 11. Entire Agreement This Agreement embodies the complete understanding of City and TCHD superseding all oral or written previous and contemporary agreements between the parties relating to matters herein. This Agreement may be amended, modified, or supplemented only by an instrument in writing executed by City and TCHD. Any alterations, additions or deletions to the terms of this Agreement required by changes in federal, state or local law or regulations will be automatically incorporated into this Agreement without written amendment, and shall become effective on the date designated by such law or regulation. EXECUTED this the day of , 1998, by the City, signing by and through its City Manger, duly authorized by Resolution No. approved on 1998, and by TCHD, through its duly authorized officials. APPROVED AS TO FORM: CITY OF NORTH RICHLAND HILLS Rex McEntire City Attorney Larry Cunningham City Manager 4 [~., TARRANT COUNTY HOSPITAL DISTRICT District Attorney ATTEST: City Secretary County Clerk Tom Vandergriff County Judge Tony Alcini TCHD ~.,:.. ,i CITY OF NORTH RICHLAND HILLS AND TARRANT COUNTY JUNIOR COLLEGE DISTRICT AGREEMENT TO PARTICIPATE IN REINVESTMENT ZONE NUMBER ONE TAX INCREMENT FINANCING DISTRICT THIS AGREEMENT TO PARTICIPATE IN REINVESTMENT ZONE NUMBER ONE, CITY OF NORTH RICHLAND HILLS (the "Agreement") is made and entered into by and between the City of North Richland Hills, ("City"), a municipal corporation, and the Board of Trustees of the Tarrant County Junior College District of Tarrant County, Texas ("TCJC"). WITNESSETH: WHEREAS, in accordance with the provisions of the Tax Increment Financing Act, V.T.C.A., Tax Code, Chapter 311, (the "Act"), and after due notice to TCJC and other taxing units levying real property taxes in the area, the City Council of the City, pursuant to Ordinance No. 2333 (the "Ordinance"), adopted on September 14, 1998, created, established and designated "Reinvestment Zone Number One, City of North Richland Hills, Texas" (hereinafter called the "Reinvestment Zone") under the Act; and WHEREAS, the Act provides that each taxing unit levying taxes on real property in a reinvestment zone may determine the portion of the tax increment produced that it will retain, if any, by notifying the Board of Directors of the Zone in writing of that percentage on or before the 60th day after the date on which the governing body of the municipality approves the reinvestment zone financing plan as provided by Section 311.011 (d). Likewise, the governing body of a taxing unit may not decrease the portion of the tax increment that it has determined to dedicate to a reinvestment zone after the project plan is approved; and WHEREAS, the City desires to enter into an agreement with TCJC prior to the 60th day after the City approves the reinvestment zone financing plan; and WHEREAS, a tax increment agreement under the Act may be entered into any time before or after the zone is created, and such agreement may include any conditions for payment of the tax increment into the fund and must specify the portion of the tax increment to be paid into the tax increment fund and the years for which that tax increment is to be paid into the tax increment fund. WHEREAS, the City and TCJC desire to enter into this Agreement. NOW, THEREFORE, the City and the Tarrant County Junior College District, in consideration of the terms, conditions, and covenants contained herein, hereby agree as follows: Section 1. TCJC Participation TCJC hereby agrees to pay 100% of the taxes levied and collected against the captured appraised value of real property as determined in Section 311.012 of the Act, in said "Reinvestment Zone Number one, City of North Richland Hills" subject to the following terms and conditions: a. The boundaries of the Reinvestment Zone are and shall be those boundaries described in the Ordinance. b. Within the boundaries of the Reinvestment Zone, amixed-use business center of 290,000 or more square feet of enclosed office, manufacturing, retail, service and/or distribution space, and other out parcel development is proposed to be constructed. c. The land within the boundaries of the Reinvestment Zone is to be appraised by the central appraisal district in 1998 for ad valorem tax purposes and for establishing the tax increment base referenced in Section 311.012 of the Act. d. The City shall contribute $531,000 toward the project above its scheduled TIF contribution, as outlined in the Project and Financing Plans. e. The total principal amount of bonds issued to pay public improvement project costs for the Reinvestment Zone pursuant to Section 311.015 of the Act shall not exceed Eight Hundred Fifty Thousand Dollars ($850,000) in present value 1998 funds. Total issuance costs will be approximately $8,500. f. The City will maintain its TIF contribution at the same tax rate as when the District is initiated. Should the City tax rate be reduced at any time during the life of the TIF, the City shall contribute additional funds from other sources in order to make its annual deposit equal to the tax increment produced at the City's tax rate for the year in which the TIF was initiated. e. All amounts paid into the tax increment fund shall be used solely to repay cash expenditures for project costs or the principal of and interest on tax increment bonds, notes or other evidence of indebtedness issued to finance project costs under the Act generally accepted accounting principles to the administration of the Reinvestment Zone; however, in no event shall any of the amounts paid into the tax increment fund be used to pay any overhead or administrative cost of City employees or officials for time spent or services rendered with respect to the Project. Section 2. In accordance with Section 311.013 of the Act, TCJC shall not be required to pay tax increment into the tax increment fund of the Reinvestment Zone after three years from the date the Reinvestment Zone has been created unless: a. cash has been expended for the Reinvestment Zone under Section 311.015 of the Act to finance the Project, or b. construction of the Project pursuant to the project plan has begun in the Reinvestment Zone. Section 3. As inducement to TCJC to enter into this Agreement, the City agrees that no cash will be expended to construct the Zone Project until (a) a final project plan and financing plan has been prepared and adopted by the Board of Directors of the Reinvestment Zone and approved by the City Council of the City and (b) the City has been furnished documentation and evidence satisfactory to the Board of Directors of the Reinvestment Zone and the City to the effect that all final agreements and arrangements for the construction of the Project have been completed and executed and all major construction contracts necessary to complete the construction have been awarded. Section 4. The term of this Agreement shall be for three years from the date the Reinvestment Zone was created in accordance with Section 2, or until all cash expended for the Reinvestment Zone under Section 311.015 of the Act, or refunding bonds issued to refinance such bonds issued under Section 311.015 of the Act, have been fully paid and discharged, whichever event shall be the latest to occur. Section 5. City and TCJC shall each be responsible for the sole negligent acts of their officers, agents, employees or separate contractors. In the event of joint and concurrent negligence of both City and TCJC, responsibility, if any, shall be apportioned comparatively in accordance with the laws of the State of Texas, without, however, waiving any governmental immunity available to City and TCJC under Texas law and without waiving any defenses of the parties under Texas law. Section 6. Administration This agreement shall be administered by the City Manager or his designees. Section 7. Notice Whenever this Agreement requires or permits any consent, approval, notice, request, proposal, or demand from one party to another, the consent, approval, notice, request, proposal or demand must be in writing to be effective and shall be delivered to the party intended to receive it at the addresses shown below: If intended for the City or the Board, to: City Manager City of North Richland Hills P.O. Box 820609 North Richland Hills, Texas 76182-0609 If intended for TCJC, to: Chancellor Tarrant County Junior College District 1500 Houston Street Fort Worth, Texas 76102-6524 Or to such other addresses as the parties may request, in writing, from time to time. Section 8. Governing Law and Venue This Agreement is made subject to the provisions of the Charter and ordinances of City, as amended; Texas constitution, codes, and statutes; and all other applicable state and federal laws, regulations and requirements, as amended. Venue shall be exclusively in Tarrant County, Texas. Section 9. Binding Agreement This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and assigns. No third party shall have any rights herein. Section 10. Execution This Agreement shall become a binding obligation on the parties upon execution by all parties. Each party hereto warrants and represents that the individual executing this Agreement on behalf of such party has full authority to execute this Agreement and bind such party to the same. This Agreement may be executed in one (1) or more counterparts, each of which shall be deemed an original and all of which taken together shall constitute one in the same agreement. Section 11. Entire Agreement This Agreement embodies the complete understanding of City and TCJC superseding all oral or written previous and contemporary agreements between the parties relating to matters herein. This Agreement may be amended, modified, or supplemented only by an instrument in writing executed by City and TCJC. Any alterations, additions or deletions to the terms of this Agreement required by changes in federal, state or local law or regulations will be automatically incorporated into this Agreement without written amendment, and shall become effective on the date designated by such law or regulation. EXECUTED this the day of , 1998, by the City, signing by and through its City Manger, duly authorized by Resolution No. approved on 1998, and by TCJC, through its duly authorized officials. APPROVED AS TO FORM: CITY OF NORTH RICHLAND HILLS Rex McEntire City Attorney Larry Cunningham City Manager DISTRICT ATTORNEY District Attorney's Office TARRANT COUNTY Tom Vandergriff County Judge Leonardo de la Garza Chancellor Tarrant County Junior College District ~~~;. CITY OF NORTH RICHLAND HILLS Public Works December 3, 1998 MEMO TO: Marty Wieder, Economic Development Director FROM: Greg Dickens, Public Works Director SUBJECT: MACKEY CREEK DIVERSION CHANNEL PROJECT; Status Report The consulting engineer is finishing the final corrections to the construction plans and completing the specifications and contract documents for this project. We have been in close coordination with the developer's design team and have made contact with Birdville Independent School District concerning the final design. The U.S. Army Corps of Engineers has given us an "okay" on the design with reference to any wetlands issue. Our current schedule is shown below 1. Advertise in the newspaper ............................... 12/11!98 & 12/18/98 2. Receive public bids ........................................... 1/07/99 3. Share bid information with the TIF Board of Directors ..................................... 1/11/99 through 1/18/99 4. Council award bid ............................................. 1/25/99 After the award of bid, the contractor will have to get his bonds executed before the final contract is executed by the Mayor. A Preconstruction Meeting will be scheduled as soon as possible after the bid award, with BISD officials and the Richland Plaza developer being invited to attend. Construction should start around February 8, 1999. c~ cc: Larry Cunningham, City Manager Randy Shiflet, Deputy City Manager Ron Ragland, Assistant City Manager P.O. Box 820609 • North Richland Hills, Texas • 76182-0609 7301 Northeast Loop 820 • 817-581-5521 • FAX 817-656-7538 1987-1997 Economic Development Department A Decade of Dynamic Development T0: Larry Cunningham City Manager/Acting TIF Manager FROM: Marty Wieder, Director of Economic Development SUBJECT: Status of Richland Business Center (Richland Plaza) Renovations DATE: December 3, 1998 I'm pleased to report that contractors associated with Today Richland Center, LP, have made good progress with the renovations of "Richland Business Centre" since the last Board meeting. For instance, Fort Worth general contractor The Ridgemont Company has almost completed asbestos abatement and interior demolition, as we saw on our visit there earlier this week. You will recall that Ridgemont has had equipment and personnel on site since mid-September. Likewise, we witnessed continued progress in their removal of the metal awnings and walkway covers, with several welders cutting hardware and other Ridgemont staff carrying rusted beams and sheets to scrap dumpsters. And roof equipment demolition is also complete. Nevertheless, it does not appear that reroofing has begun-and according to Today Richland Center representatives, Needham Wright Engineers found the existing water and sewer lines to be in extremely poor condition or noncompliant with current codes. North Richland Hills' Public Works staff is communicating with Today Richland Center officials about these latest utility issues. I will speak with them and come prepared to provide an update on this matter when the Board meets on December 16. MBW NORTH RICHLAND HILLS, TEXAS 7301 N.E. Loop 820 76180 (81 7) 581-5534 Fax (817) 656-7539 email: nrhed@airmail.net homepage: http://www.ci.nort h-richland- hills.tx.us