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HomeMy WebLinkAboutOrdinance 3029ORDINANCE NO. 3029 AN ORDINANCE approving the first amendment to the project plan and reinvestment zone financing plan for Reinvestment Zone Number 1, City of North Richland Hills, and resolving other matters incident and relating thereto, and providing an effective date. WHEREAS, pursuant to the provisions of the Tax Increment Financing Act, V.T.C.A., Tax Code, Chapter 31I, as amended (the "Act"), and pursuant to Ordinance No. 2333, adopted on September 14, 199$ by the City Council (the "Council") of the City of North Richland Hills (the "City"), the City created a reinvestment zone known as Reinvestment Zone Number 1, City of North Richland Hills (the "Zone"); and WHEREAS, on October 20, 1998, the Board of Directors of the Zone (the "Board") prepared and adopted a project plan (the "Project Plan") and a reinvestment zone financing plan (the "Finance Plan" and, together with the Project Plan, the "Plans") for the Zone in accordance with Section 311.011(a) of the Act and submitted such Plans to the Council for approval; and WHEREAS, the Council approved the Finance Plan and the Project Plan on Octobex 26, 1998 and December 14, 1998, respectively, and WHEREAS, the Board has prepared and adopted a fast amendment to the Project Plan and a first amendment to the Finance Plan (jointly, the "First Amendments") for the Zone in accordance with Section 311.011(e) of the Act, which First Amendments expand the boundaries of the Zone by adding certain real property described in Exhibit A of this Ordinance (the "Property"), and the Board has submitted such First Amendments to the Council for approval; and WHEREAS, on November 24, 2008, the Council held a public hearing regarding the enlargement of the Zone and its benefits to the City and to property in the Zone and afforded a reasonable opportunity fox all interested persons to speak for or against the addition of the Property into the Zone; and WHEREAS, notice of the public hearing was published in a newspaper of general circulation in the City on November 14, 2008, which date was more than seven (7) days prior to the date of that hearing; and WHEREAS, prior to the public hearing the City provided written notice to all taxing units levying real property taxes within the Zone of the City's intention to add the Property into the Zone and of the public hearing; and WHEREAS, the Council hereby finds and determines that the First Amendments for the Zone are feasible and conform to the master plan of the City and should be approved; now, therefore, 65216204.1/10611340 Ordinance No. 3029 Page 1 of 33 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: SECTION 1: Plan Approval, The First Amendments prepared and adopted by the Board, attached hereto as Exhibit B and Exhibit C and incorporated by reference as a part hereof for all purposes, are hereby approved in all respects and such First Amendments are deemed to be feasible and conform to the master plan of the City. The Council hereby ratifies, confirms and approves all Council action in approving the Plans. SECTION 2: Severability. If any provision of this Ordinance or the application thereof to any circumstance shall be held to be invalid, the remainder of this Ordinance and the application thereof to other circumstances shall nevertheless be valid, and the Council hereby declares that this Ordinance would have been enacted without such invalid provision. SECTION 3: Incorporation of Findings and Determinations. The findings and determinations of the Council contained in the preamble hereof are hereby incorporated by reference and made a part of this Ordinance for all purposes as if the same were restated in full in this Section. SECTION 4: Public Meeting. It is officially found, determined and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by V.T.C.A., Government Code, Chapter 551, as amended. SECTION 5: Effective Date. This Ordinance shall be in full force and effect from and after its passage on the date shown below and it is so ordained. (Remainder of page left blank intentionally) 65216204.1/10611340 2 Ordinance No. 3029 Page 2 of 33 PASSED AND ADOPTED, this November 24, 200$. ATTEST: City Secretary APPROV D AS TO LEGALITY: ~~ City Attorney ~~ . ~~ ••N~~NN~y~••' O /'~I ~C''Seal) ~,'. ~s n r z s ~'~ h ~ ~~ 65216204.1/10611340 S-1 Ordinance No. 3029 Page 3 of 33 EXHIBIT A METES AND BOUNDS DESCRIPTION EXPANSION AREA Approximately 297 acres BEGINNING at a point being on the south Right of Way (ROW) line of Richland Plaza Dr, and being on the north property line of a tract designated by the Tarrant Appraisal District (TAD} as Tract A, A2 and A1, Richland Plaza Addition approximately 70 feet south and approximately 10 feet west of the southwest corner, of a tract designated by TAD as Commercial Tract B out of the Richland Plaza Addition; THENCE, in a northeasterly direction leaving said south ROW line and crossing Richland Plaza Drive a distance of approximately 70 feet to the southwest corner of a tract designated by TAD as Commercial Tract B out of the Richland Plaza Addition; THENCE, in a northerly direction along the west boundary of said Commercial Tract B of the Richland Plaza Addition approximately 130 feet to the northwest corner of said tract; THENCE, in an easterly direction along the north boundary of said Commercial Tract B of the Richland Plaza Addition approximately 335 feet to the southeast corner of Lot 4, Block 10, Richland Hills West Addition; THENCE, in a northerly direction along the east boundary of said Lot 4, Block 10, Richland Hills West Addition approximately 120 feet to the northeast corner of said lot and also to a point in the south ROW line of Onyx Drive South; THENCE, following said south ROW line in an easterly direction of approximately 177 feet to a point in the said south ROW line and also being the northeast corner of Lot 6, Block 10, Richland Hills West Addition; THENCE, in a northeasterly direction leaving said south ROW line and said corner of Lot 6, Block 10, Richland Hills addition crossing Bonzer St. a distance of approximately 110 feet to a point in the east ROW line of Bonzer St.; THENCE, northeast along the east ROW line of Bonzer St. approximately 760 feet to a point in the south ROW line of Jerreli St. and being the northwest corner of Lot 9A5, Block 9, Richland Hills West Addition; THENCE, in a northwesterly direction leaving said corner of Lot 9A5, Block 9, Richland Hills West Addition a distance of approximately 60 feet to a point in the north ROW line of Jerrell St. and also being in the south property line of Lot 27, Block 3, Richland Hills West Addition; 65216204.1/10611340 A-1 Ordinance No. 3029 Page 4 of 33 THENCE, easterly along the north ROW line of Derrell St. a distance of approximately 400 feet to the southeast corner of Lot 33, Block 3, Richland Hills West Addition and being a point in the west ROW line of Rufe Snow Dr.; THENCE, northerly along said west ROW line of Rufe Snow Dr. a distance of approximately 1,014 feet to a point in the west ROW line of Rufe Snow Dr. and being the northeast corner of Lot 1 A, Block 12, Richland Hills West addition; THENCE, westerly along the north property lines of Lot lA through Lot 13, Block 10, Richland Hills West Addition a distance of approximately 810 feet, approximately 15 feet east of the southwest corner of a tract designated by TAD as Tract 2L04, out of the M. Lynch Survey, Abstract No. 953; THENCE, northeasterly along a curve approximately 615 feet to a point in the centerline of Harmonson Rd., perpendicular to the eastern property line of a tract designated by TAD as Tract 2L04A, out of the M. Lynch Survey, Abstract No. 953; THENCE, easterly along said centerline of Harmonson Rd. a distance of approximately 500 feet to a point in said centerline; THENCE, in a northerly direction leaving said centerline of Harmonson Rd. a distance of 365 feet to a point on the southern property line of Lot 11R, Block 2, J.L. Autrey Addition; THENCE, in a westerly direction along the said southern property line a distance of approximately 200 feet to the southwest corner of said Lot 11 R, Block 2, J.L. Autrey Addition; THENCE, in a northerly direction, initially following the western property line of said Lot 11R, Block 2, J.L. Autrey, and continuing north, departing from the said western property line a total distance of approximately 240 feet to a point in the centerline of Rita Beth St. that is perpendicular to the most northern property line of said Lot 11R, Block 2, J.L. Autry Addition; THENCE, in an easterly direction along the most northern property line of Lot 11R, Block 2, J.L. Autrey Addition a distance of approximately 200 feet to the southeast corner of Lot 8, Block 3, J.L. Autrey Addition; THENCE, in a northerly direction a distance of approximately 205 feet to the northeast corner of Lot 6, Block 3, J.L. Autrey Addition; THENCE, in a westerly direction along the north property line of said Lot 6, Block 3, J.L. Autrey Addition a distance of approximately 75 feet to the southeast corner of Lot D, Block 3, J.L. Autrey Addition; b521b204. L/10611340 ,A-2 Ordinance No. 3029 Page 5 of 33 THENCE, in a northerly direction a distance of approximately 235 feet to the northeast corner of Lot A, Block 3, J.L. Autrey Addition; THENCE, in a westerly direction a distance of approximately 115 feet to a point on the centerline of Rita Beth St. perpendicular to the north property line of said Lot A, Block 3, J.L. Autrey Addition; THENCE, in a northerly direction roughly along the centerline of Rita Beth St. a distance of approximately 175 feet to a point in the centerline of Glenview Dr.; THENCE, in a westerly direction along the centerline of Glenview Dr, a distance of approximately 585 feet to a point on said centerline which is perpendicular to the west property line of a tract designated by TAD as Tract 2B4A out of the John M. Vandusen Survey, Abstract No. 1588; THENCE, in a northerly direction leaving said centerline of Glenview Dr. following the west property line of said Tract 2B4A out of the John M. Vandusen Survey, Abstract No. 1588 a distance of approximately 745 feet to the northwest corner of Lot 1, Block 1, North Glenn Addition; THENCE, in a easterly direction along the north property line of said Lot 1, Block 1, North Glenn Addition a distance of approximately 830 feet to a point on the centerline of Rufe Snow Dr.; THENCE, in a southerly direction along said centerline of Rufe Snow Dr. a distance of approximately 535 feet, to a point on said centerline that is perpendicular to the south property line of Lot 14R, Block 6, Hillview Addition; THENCE, in an easterly direction parallel to said south property line a distance of approximately 320 feet to a point on the centerline of Carma Dr.; THENCE, in a southerly direction along said centerline of Carma Dr. a distance of approximately 197 feet to a point along said centerline of Carma Dr. that is perpendicular to the north ROW of Glenview Dr. THENCE, in an easterly direction along the north ROW line of Glenview Dr. a distance of approximately 2,710 feet to a point on said ROW line and being the southeast corner of Lot 6, Block 4, North Richland Hills Addition; THENCE, in a northerly direction along the east property line of said Lot 6, Block 4, North Richland Hills Addition a distance of approximately 115 feet to the northeast corner of said lot; . THENCE, in an easterly direction a distance of approximately 7 feet to the southeast corner of Lot 5, Block 4, North Richland Hills Addition; 65216204.1/ 10611340 A-3 Ordinance No. 3029 Page 6 of 33 THENCE, in a northerly direction along the east property lines of Lots 4 & 5, Block 4, North Richland Hills Addition a distance of approximately 163 feet to the most southern corner of Lot 3, Block 4, North Richland Hills Addition; THENCE, in a northeasterly direction parallel to the southeast property line of Lots 1-3, Block 4, North Richland Hills Addition, and extending across Blaney Ave. to a total distance of approximately 250 feet to a point on the eastern ROW line of Blaney Ave.; THENCE, in a northwesterly direction along the said east ROW line of Blaney Ave. a distance of approximately 350 feet to a point on said ROW line and being the southwest corner of Lot 1, Block 5, North Richland Hills Addition; THENCE, in an easterly direction a distance of approximately 775 feet to the east corner of Lot 14A, Block 5, North Richland Hills Addition; THENCE, in a northeasterly direction a distance of approximately 1,078 feet to the east corner of Block 5, Lot 11, North Richland Hills Addition; THENCE, in a northerly direction a distance of approximately ?5 feet to the northwest corner of Lot 2, North Edgley Addition; THENCE, in an easterly direction parallel to the north property line of said Lot 2, North Edgley Addition a total distance of approximately 75 feet to a point on the centerline of Ken Michael Ct.; THENCE, in a northerly direction along said centerline of Ken Michael Ct. a distance of approximately 102 feet to a point on said centerline and being perpendicular to the south property line of Lot 9, North Edgley Addition; THENCE, in an easterly direction along the south property line of said Lot 9, Edgley Addition a distance of approximately 145 feet to the southeast corner of said lot; THENCE, in a northeasterly direction a distance of approximate 75 feet to a point on the west property line of Lot 2R, Block 1, North Edgley Addition; THENCE, in a northern direction along said west property line a distance of approximately 288 feet to the most west northwest corner of Lot 1R, Block 1, North Edgley Addition; THENCE, in an easterly direction following the property line of said Lot 1R, Block 1, North Edgley Addition a distance of approximately 50 feet; THENCE, in a northerly direction a distance of approximately 1,500 feet to a point on the west ROW line of Road to the Mall Dr. and also being the northeast corner of Lot 24, H.W. Kelley Estates Addition; 65216204.1/10611340 A-4 Ordinance No. 3029 Page 7 of 33 THENCE, in a northerly direction along the said west ROW line of Road to the Mall Dr. a distance of approximately 534 feet to a point on said ROW line and being the east corner of Lot 1R1, Richland Terrace Addition; THENCE, in a northeasterly direction perpendicular to the ROW lines for NE LOOP 820 a distance of approximately 350 feet to a point on the north ROW line of NE LOOP 820; THENCE, in a easterly direction along said north ROW line of NE LOOP 820 a distance of approximately 1000 feet to another point in said ROW line and also being the south corner of Lot 2R1, Block 42CR, Richland Terrace Addition; THENCE, in a southeasterly direction a distance of approximately 75 feet to a point on the north ROW line of NE LOOP 820; THENCE, in a easterly direction along the said north ROW line of NE LOOP 820 a distance of 1,920 feet to a point on said ROW line and being the most south southeast corner of Lot 4, Kip's Big Boy Addition; THENCE, in a southeasterly direction a distance of approximately 400 feet to a point on the west ROW line of Booth Calloway Rd. and being the most east northeast corner of Lot B 1, Calloway Park Addition; THENCE, in a southerly direction roughly along the said west ROW line of Booth Calloway Rd. a distance of approximately 675 feet to a point on the south ROW line of Roger Line Dr. and being approximately 15 feet west of the northeast corner of Lot lA, Block E, Calloway Farm Addition; THENCE, in an westerly direction along the said south ROW line of Roger Line Dr. a distance of approximately 1,430 feet to a point on said south ROW line and also being the northwest corner of a tract designated by TAD as Tract 9W01 A of the William W. Wallace Survey, Abstract No. 1606. THENCE, in a northwesterly direction along a curved line that follows a private road in the North Hills Mall property, also known as Lot 1 R, Block A, Calloway Farm Addition a distance of approximately 470 feet to the east corner of Lot 2, Block. J, Calloway Farm Addition; THENCE, in a southwesterly direction along the southeast property line of said lot a distance of approximately 425 to the south corner of said Lot 2, Block J, Calloway Farm Addition, and being the east corner of Lot 1, Block J, Calloway Farm Addition; THENCE, in a southwesterly direction along the southeast property line of said Lot i, Block J, Calloway Farm Addition, a distance of approximately 320 feet to the south corner of said lot; 65216204.1/10611340 A_5 Ordinance No. 3029 Page 8 of 33 THENCE, in a southwesterly direction a distance of approximately 90 feet to the east corner of Lot 1, Block E, Calloway Farm Addition; THENCE, in a southwesterly direction along the southeast property line of said Lot 1, Block E, Calloway Farm Addition a distance of approximately 450 feet to the south corner of said lot; THENCE, in a southwesterly direction along the curved property line of Lot 1 R, Block D, Calloway Farm Addition a distance of approximately 400 feet to a point on said property line; THENCE, in a southwesterly direction departing from said property line a distance of approximately 156 feet to the north corner of Lot 15R, Edgley Addition, and being a point on the south ROW line of Highway 26; THENCE, in a southwesterly direction along the said south ROW line of Highway 26 a distance of approximately 395 feet to a point on said ROW line and being the northwest corner of Lot 12, Edgley Addition, and being a point on the south City Limit line of North Richland Hills; THENCE, in a southwesterly direction along said south city limit line and roughly following the south ROW line of Highway 26 a distance of approximately 7,625 feet to a point on the said city limit line; THENCE, in a northwesterly direction a distance of approximately 16S feet to the east corner of Commercial Tract Al of the Richland Plaza Addition, a point being on the south ROW line of Richland Plaza Dr.; THENCE, in a northwesterly direction along the curve of the said south ROW line of Richland Plaza Dr., a distance of approximately 270 feet to the POINT OF BEGINNING. 65216204.1/10611340 A-6 Ordinance No. 3029 Page 9 of 33 EXHIBIT B AMENDED PROJECT PLAN 65216204.1/10611340 Ordinance No. 3029 Page 10 of 33 CITY OF NORTH RICHLAND HILLS EXPANSION OF REINVESTMENT ZONE NUMBER 1 PROJECT PLAN November 6, 2008 PREPARED BY THE CITY OF NORTH RICHLAND HILLS PLANNING AND DEVELOPMENT DEPARTMENT Ordinance No. 3029 Page 11 of 33 CITY OF NORTH RICHLAND HILLS EXPANSION OF REINVESTMENT ZONE NUMBER 1 PROJECT PLAN As required by Chapter 311, Title 3, Subtitle B of the Texas Tax Code, the City of North Richland Hills, Texas (the "City") submits the following Project Plan for the expansion of Reinvestment Zone Number 1, City of North Richland Hills. BACKGROUND AND HISTORY Reinvestment Zone Number 1, City of North Richland Hills ("RZ Number 1 ") was created in 1998 with a 20 year financing plan. RZ Number 1 was created as a result of a joint effort by the City of North Richland Hills, Birdville Independent School District ("BISD"), Tarrant County, Tarrant County Hospital District, and Tarrant County College District. The zone was created to improve drainage in the amount of $850,000 to allow for private developer improvements to the old Richland Plaza Shopping Center, now known as The Hills Business Center. The value of the property within the zone in 1998, when the RZ Number 1 was created, was slightly more than $1 million. The existing RZ Number 1 boundaries are approximately 95 acres, and nearly $9 million in new real property improvements have been made to the 300,000 square foot center from 1999 to 2008 (10 years). An additional $7 million in personal property value, not RZ eligible, has been added to the participating entities' tax rolls. Several tenants have located to this center, which has about an 80% occupancy rate, and nearly 900 jobs have been created as a result of this joint effort. A once blighted area, the RZ now contains a thriving professional business development, and the RZ is the source of great community pride. At the October 2007, RZ Number 1 Board meeting, the Board gave City staff permission to study the possibility of expanding the zone to include new boundaries along Boulevard 26 which would pay for new public improvements within the expanded district. It was noted that these public improvements could greatly assist in the economic revitalization of the Boulevard 26 corridor. Since that time, City staff has made preliminary presentations of the RZ Number 1 expansion plan to City Council and officials of the other governing entities to obtain participation in the expansion. North Richland Hills City Council, BISD, Tarrant County, Tarrant County Hospital District, and Tarrant County College District have all expressed interest in expanding RZ Number 1. Ordinance No. 3029 Page 12 of 33 EXPANSION PROJECT PLAN OVERVIEW The boundaries of the expansion of RZ Number 1 include all commercial properties in the Boulevard 26 corridor area (except North Hills Hospital and Calloway Creek property) from the southern City limits to Loop 820 (see attached map). The metes and bounds description of the expanded zone is included in the City Ordinance approving the expansion. The expanded zone encompasses approximately 392 acres, with an existing 2008 base value of real property of approximately $32.8 million. The actual base value within the expanded area will be determined by Tarrant Appraisal District for the purposes of calculating the incremental growth of real property upon which taxes will be collected for the RZ Number 1 from 2009 through 2018. The incremental growth in value of property within the expanded area is estimated to be $30 million over 10 years. It is estimated that the incremental real property values will support the principal and interest payments of debt issued for projects totaling $3.5 million included in the Project Plan. Based on an Attorney General's opinion, the timeframe of a reinvestment zone cannot be extended beyond its original length. Therefore, the expanded RZ Number 1 will be limited to 2018 (ten years). All taxing entities, except BISD, will participate in the expansion. BISD will participate in the Project Plan and Financing Plan (pay taxes into the zone) only to the extent of the boundaries of RZ Number 1 prior to any expansion. Details of all governing bodies' participation and responsibilities will be included in agreements between the City and each entity, which must be approved by their respective governing bodies. DETAIL DESCRIPTION AND COST OF PROJECTS RZ Number 1 expansion projects include public infrastructure improvements in the amount of $3.5 million along Boulevard 26 within the expanded zone boundaries. These improvements can be separated into two major projects which possibly will be undertaken simultaneously. The projects within the expansion include the following: Burying above ground utilities approximately 1.25 miles NRH side of Blvd. 26 This project includes the burying of existing above ground utility lines on the North Richland Hills side of Boulevard 26 between Glenview and Rufe Snow. The Project Map indicates the identified area which includes the following estimated costs: 5,800 linear feet of bore @$250/foot 9 switchgears 20 transformers @$30, 000 each @$15,000 each Required easements for switchgears and transformers $1,450,000 $ 270,000 $ 300, 000 $ 25,000 Ordinance No. 3029 Page 13 of 33 Relocating above ground cable and phone lines and conversion of light poles to underground $ 955,000 TOTAL PROJECT COST $3,000,000 Boulevard 26 Intersection Improvements at Rufe Snow Drive and Glenview Drive This project will consist of constructing street and related landscape and streetscape improvements at the intersections of Rufe Snow Drive and Boulevard 26, and Glenview Drive and Boulevard 26 as indicated on the project map. The estimated cost of these two intersections for the City of North Richland Hills is $500,000, allocated in the following manner: Engineering and Design of Landscape and streetscape Improvements $175,000 Construction of Intersection Improvements TOTAL PROJECT COST 325 000 $500,000 EXPANSION OF REINVESTMENT ZONE NUMBER 1 PROJECT SUMMARY RZ Expenses Burying above ground utilities approximately 1.25 miles (NRH side Blvd. 26 -approximately $454 per linear foot) $3,000,000 RZ Expenses Design and Construction of Boulevard 26 Intersection Improvements at Rufe Snow Drive and Glenview Drive $ 500,000 GRAND TOTAL PLAN COST $3,500,000 MAP Attached is a map showing the location of the proposed public improvements along Boulevard 26 as described in the expansion project plan. Ordinance No. 3029 Page 14 of 33 NO PROPOSED CHANGES TO ZONING ORDINANCE, MASTER PLAN, BUILDING CODES OR OTHER MUNICIPAL ORDINANCES The City of North Richland Hills is proposing no additional changes to its master plan, zoning ordinance, building codes or any other municipal ordinances to help facilitate this project. LIST OF NON-PROJECT COSTS There are no specific planned non-project costs in connection with the RZ Number 1 expansion project plan. It is anticipated that general commercial development within the expanded zone boundaries will generate the estimated captured valuation necessary to pay for the public improvements. METHOD OF RELOCATION The City of North Richland Hills does not anticipate needing to relocate any existing property owners or tenants as a result of implementing the plan. Ordinance No. 3029 Page 15 of 33 di i gg ii 3? ~~~ F i pp~~. i~ %' s ~~~ ~ ~. ~ i Yi E i T N J _J 2 Z ~ _ Z p N ...r+ U ~ y ~ ~ = N ~ C M 0 ~ ... Z ... ~ O ~ C ~- F- C U a x W ~ ~ ~ ~ ~ N M € _ R u { J 3 I~ ~ ~ ~ 6 5 ~a. °M Z U ~ C ~ N `- C ~ ~ ~ EXHIBIT C AMENDED FINANCE PLAN 65216204.1/]0611340 Ordinance No. 3029 Page 17 of 33 CITY OF NORTH RICHLAND HILLS EXPANSION OF REINVESTMENT ZONE NUMBER 1 FINANCE PLAN November 6, 2008 PREPARED BY THE CITY OF NORTH RICHLAND HILLS FINANCE DEPARTMENT Ordinance No. 3029 Page 18 of 33 CITY OF NORTH RICHLAND HILLS EXPANSION OF REINVESTMENT ZONE NUMBER 1 FINANCING OPTIONS Ordinance No. 3029 Page 19 of 33 CITY OF NORTH RICHLAND HILLS EXPANSION OF REINVESTMENT ZONE NUMBER 1 GENERAL PROVISIONS ^ The City means the City of North Richland Hills, Texas. ^ RZ means the Reinvestment Zone Number 1, City of North Richland Hills. ^ The Base Value is the total appraised value of all real property taxable by the City and located in the RZ for the year in which the RZ was designated and for that real property subsequently added to the RZ for the year in which the expansion was designated. ^ The Captured Assessed Valuation is the total appraised value of the real property which is added to the tax base after the RZ was designated or expanded, as applicable. The Captured Assessed Valuation does not include personal property. ^ The RZ has no taxing powers; however, participating overlapping political subdivisions' tax revenues generated on the Captured Assessed Valuation are diverted to the Tax Increment Fund. ^ Tax increment revenues can only be used for the benefit of the property within the RZ, including paying for capital improvements and paying debt service on bonds issued for authorized improvements. ^ An RZ has a defined period of existence which may be related to the term of debt. Once the RZ is abolished, the tax revenues are no longer diverted to the Tax Increment Fund. ^ The City expands the RZ and is the issuer of debt and is therefore responsible for the payment of the debt. Other participating political subdivisions allow their tax revenues to be diverted to the Tax Increment Fund and have representation on the RZ Board. Ordinance No. 3029 Page 20 of 33 CITY OF NORTH RICHLAND HILLS EXPANSION OF REINVESTMENT ZONE NUMBER 1 FLOW-OF-FUNDS Investment Earnings on Construction Fund ~2~ Tax Increment Revenues Tax Increment Fund Debt Service Fund Bond Holders (1) If necessary. (2) Investment earnings on construction fund during construction period only. City of North Richland Hills Ad Valorem Property Ordinance No. 3029 Page 21 of 33 CITY OF NORTH RICHLAND HILLS EXPANSION OF REINVESTMENT ZONE NO. 1 FINANCE PLAN DETAIL DESCRIPTION AND COST OF PROJECTS Ordinance No. 3029 Page 22 of 33 CITY OF NORTH RICHLAND HILLS EXPANSION OF REINVESTMENT ZONE NUMBER 1 DESCRIPTION AND COST OF PROJECTS BACKGROUND AND HISTORY Reinvestment Zone Number 1, City of North Richland Hills ("RZ Number 1 ") was created in 1998 with a 20 year financing plan. RZ Number 1 was created as a result of a joint effort by the City of North Richland Hills, Birdville Independent School District ("BISD"), Tarrant County, Tarrant County Hospital District, and Tarrant County College District. The zone was created to improve drainage in the amount of $850,000 to allow for private developer improvements to the old Richland Plaza Shopping Center, now known as The Hills Business Center. The value of the property within the zone in 1998, when the RZ Number 1 was created, was slightly more than $1 million. The existing RZ Number 1 boundaries are approximately 95 acres, and nearly $9 million in new real property improvements have been made to the 300,000 square foot center from 1999 to 2008 (10 years). An additional $7 million in personal property value, not RZ eligible, has been added to the participating entities' tax rolls. Several tenants have located to this center, which has about an 80% occupancy rate, and nearly 900 jobs have been created as a result of this joint effort. A once blighted area, the RZ now contains a thriving professional business development, and the RZ is the source of great community pride. At the October 2007, RZ Number 1 Board meeting, the Board gave City staff permission to study the possibility of expanding the zone to include new boundaries along Boulevard 26 which would pay for new public improvements within the expanded district. It was noted that these public improvements could greatly assist in the economic revitalization of the Boulevard 26 corridor. Since that time, City staff has made preliminary presentations of the RZ Number 1 expansion plan to City Council and officials of the other governing entities to obtain participation in the expansion. North Richland Hills City Council, BISD, Tarrant County, Tarrant County Hospital District, and Tarrant County College District have all expressed interest in expanding RZ Number 1. EXPANSION PROJECT PLAN OVERVIEW The boundaries of the expansion of RZ Number 1 include all commercial properties in the Boulevard 26 corridor area (except North Hills Hospital and Calloway Creek property) from the southern City limits to Loop 820 (see attached map). The metes and bounds description of the expanded zone is included in the City Ordinance approving the expansion. The expanded zone encompasses approximately 392 acres, with an existing 2008 base value of real property of approximately $32.8 million. The actual Ordinance No. 3029 Page 23 of 33 base value within the expanded area will be determined by Tarrant Appraisal District for the purposes of calculating the incremental growth of real property upon which taxes will be collected for the RZ Number 1 from 2009 through 2018. The incremental growth in value of property within the expanded area is estimated to be $30 million over 10 years. It is estimated that the incremental real property values will support the principal and interest payments of debt issued for projects totaling $3.5 million included in the Project Plan. Based on an Attorney General's opinion, the timeframe of a reinvestment zone cannot be extended beyond its original length. Therefore, the expanded RZ Number 1 will be limited to 2018 (ten years). All taxing entities, except BISD, will participate in the expansion. BISD will participate in the Project Plan and Financing Plan (pay taxes into the zone) only to the extent of the boundaries of RZ Number 1 prior to any expansion. Details of all governing bodies' participation and responsibilities will be included in agreements between the City and each entity, which must be approved by their respective governing bodies. DETAIL DESCRIPTION AND COST OF PROJECTS RZ Number 1 expansion projects include public infrastructure improvements in the amount of $3.5 million along Boulevard 26 within the expanded zone boundaries. These improvements can be separated into two major projects which possibly will be undertaken simultaneously. The projects within the expansion include the following: Burying above ground utilities approximately 1.25 miles NRH side of Blvd. 26 This project includes the burying of existing above ground utility lines on the North Richland Hills side of Boulevard 26 between Glenview and Rufe Snow. The Project Map indicates the identified area which includes the following estimated costs: 5,800 linear feet of bore @$250/foot $1,450,000 9 switchgears @$30,000 each $ 270,000 20 transformers @$15,000 each $ 300,000 Required easements for switchgears and transformers $ 25,000 Relocating above ground cable and phone lines and conversion of light poles to underground 955 000 TOTAL PROJECT COST $3,000,000 Ordinance No. 3029 Page 24 of 33 Boulevard 26 Intersection Improvements at Rufe Snow Drive and Glenview Drive This project will consist of constructing street and related landscape and streetscape improvements at the intersections of Rufe Snow Drive and Boulevard 26, and Glenview Drive and Boulevard 26 as indicated on the project map. The estimated cost of these two intersections for the City of North Richland Hills is $500,000, allocated in the following manner: Engineering and Design of Landscape and streetscape Improvements $175,000 Construction of Intersection Improvements TOTAL PROJECT COST 325 000 $500,000 EXPANSION OF REINVESTMENT ZONE NUMBER 1 PROJECT SUMMARY RZ Expenses Burying above ground utilities approximately 1.25 miles (NRH side Blvd. 26 -approximately $454 per linear foot) RZ Expenses Design and Construction of Boulevard 26 Intersection Improvements at Rufe Snow Drive and Glenview Drive GRAND TOTAL PLAN COST $3, 000, 000 $ 500,000 $3,500,000 Ordinance No. 3029 Page 25 of 33 City of North Richland Hills EXPANSION OF REINVESTMENT ZONE NUMBER 1 Sources of Funds for Projects Sources of Funds Certificates of Obligation Amount $ 3, 500, 000 Ordinance No. 3029 Page 26 of 33 CITY OF NORTH RICHLAND HILLS EXPANSION OF REINVESTMENT ZONE NUMBER 1 FINANCE PLAN (ECONOMIC FEASIBILITY STUDY) PROJECTED TAX INCREMENT FUND CASH FLOWS Ordinance No. 3029 Page 27 of 33 y u= ro N v ~- v N ~ .- ~ ~ h e O v V' v M v M < er n H v N o N ~ ~ M ~ m c`r~t ti ro N ~ N ~ N f" ~ G N V y N N ~ a d3 ( A V! w (R w 4 d fA w w H ~ N ~ ~ p Qi O pf OOi O^f T pp t 01 Obi OOi OMi A G F. ,e ~j,] ~ N N c`') M M O N OI N ~ k ~y A M ~ w !A try V' NV w to N V' V w ~ ~ st (a w l(1 N V' ~ u~ to tf1 sf d uH N N tt ~ u! lA 4Y V e t tR N N ~ V ~ w In to '~! st ~ w ~A 1(7 a ~ w ~ N W N N ~ N N N N N N ~N J N NN N N N N i~ O ~ N ~- w tli K to w cq tN tB w w N ~ W Z o O r `~ t~ ~ b ~ k F' N ~4 A ~ ~ ~ .- ~ r°D. 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Ordinance No. 3029 Page 28 of 33 (00 0^D ~ N ^ N tt M1 ~ ~ r r r r ~- r r N ~/~ N Y/ T Q 2w ~ ~ ~ ~ ~ ~ ~~U v~ rn ~ 0 d eZ o Z~U oa~ U~ W m ~ N N N O M W 0 0 q m N O O O D 7~ '7 t 0 t 0~ ~y E~ 111 ~ ~ M OrD N tO'1 ~ O ~ P N M co N U l0 H d O 7 t3: o c g£ as CA o°D en M rn w OD ° en 'd' n eH ~ o ~ Uj o eA 00 rn 00 m v~ 00 ~ erg t~ ~ w 'a O> b y O m ~ ti o S N Vim' c`1D ~ c0 ~ T S tOD ~ W N f~ N v v -- '- r w v1 ~ w ~a v~ ~ ~ v~ v, ~ ~ O N d E N V C N ~ 00 r .- ~ n N ~ S N Cb ~ ~ N r ti N M ~ d C~~ (V 1~ r N (p r- N ~- r r~ O r fV r r r Op r N OD O > ~ 1" m N C ~p W ev to to t» t» ~» t» u ui C O O S g t~ u0'~ ~ q w N IF3 OI 3 N ~ ~ Q N C ,~ LL • ~ ~ ~ ~ y > c A O W U rss r9 w ° ° ° ° ° ° ~ ° Z ~ g ~ ~ 0 ~ 0 O 0 to o O o 1ti o O o v7 n ' N 00 N ~p ~ x f ~ ~[i ~ .Yaf~i ~ ~O U7 f~ t~ ~ m ~ t") ~ v N1 ~ '/ . .~ v v W . . ~ v q p N .~ fa v~ yr vs ~ vi vi w w w ~ ~: r- pppQ O ~ M O Q, >~ a t00 r ~ M M ~ O ~ W 'C O '~ as O usr ~ O _ •~ ~ O O i ~ ~ O t d "'' W d M M o 0 w ~ H ~ ~ ~~ ~ coo N ~ N tDm O r~i t0 ~"p CD ~ l0 °O h. °o O °o eY O° 00 tom. F! ( v v Cv N v ~fi t(~ a ~ V ~ ~' r `i ~~" 0 W ~ u, vs ~ r v~ .- w w v3 ti v; o r» ~ v> r~ w c~ w v p }'_ 5 ~ ~ s ~ ~ ~ ~ ~ Nd_ _ ~ Q `d H ~ N N N ee~~ th ~ ~ep~ eT tNC~ ~ ~ Oep{ +A N ~ ~ ~X •y W C ~ .`.~ a o K H _ {O ~-- ~ [A e- r~appt Of t~ 1~ O ~ ~ ' S ~ ~ ' ~ ~ Of ~ ~ ~ n ? ~ O. K cn f~ r r ti M N o0i N v M ~ M ~ M r O ~ W N H ~ !A fA to ds W 69 ER N! 69 fH M N N 1CJ ~ ~ h N N ~ to N ~ ~ N C F >~ ~ V: v st +d' 'tl' d' V V ~ d ~f v V v V ~t ~t v ~A ~ !r ~ ~ N N N N N N N N N N N N N N N N N N N N 'ef N N fA iR 1A Mf fA (A 69 69 Vj 69 fq ~^^~ y V ~ V ~ E i r ~' M O N i h• N W N tl~ ONO s^ OQO ~ ~ P'7 cp O o zs m r ~ rn C9 co U .- lQ co r cv ~ ~ r M N of M W C C ~ M m 69 f/9 b9 dq K fA FR 64 V! 64 V ~- S~ O N r ~ c`7 ate- ~ O h oII J N N N N N N N N N h H Ordinance No. 3029 Page 29 of 33 City of North Richland Hills EXPANSION OF RZ NUMBER 1 Estimated Debt Calculations Debt Structure Level Principal Payments Flscai Year Issued 2009 Principal Amount $ 3,500,000 Ma~tu~rity 9 years Interest Ra#e 5.00% Fiscal Year Principal Balance Principal Payment Interest Payment Total Payment 2009 $ 3,500;000 2010 $ 3,110,000 $ 390,000 $ 225,556 $ 615,556 2011 $ 2,720,000 $ 390,000 $ 155,500 $ 545,500 2012 $ 2,330,000 $ 390,000 $ 136,000 $ 526,000 2013 $ 1,940,000 $ 390,000 $ 116,500 $ 506,500 2014 $ 1,550,000 $ 390,000 $ ~ 97,000 $ 487,004 2015 $ 1,160,000 $ 390,000 $ 77,500 $ 467,500 2016 $ 770,000 $ 390,000 $ 58,000 $ 448,000 2017 $ 385,000 $ 385,000 $ 38,500 $ 423,500 2018 $ - $ 385,000 $ 19,250 $ 404,250 Totals $ 3,500,000 $ 923,80fi $ 4,423,806 Ordinance No. 3029 Page 30 of 33 City of North Richland Nills EXPAN510N QF RZ NUMBER 1 Estimated Investment Earnings on Construction Funds Issue C.O.s 4/15/2009 In the amount of : Return on Investments : 2.0% Construction Construction Fund Earnings on $ 3,500,000 Drawdown Amount Balance investments ---- Drawdown June $ 291,667 $ 3,208,333 $ 5,347 Drawdown July $ 291,667 $ 2,916,667 $ 4,861 Drawdown August $ 291,667 $ 2,625,000 $ 4,375 Drawdown September $ 291,667 $ 2,333,333 $ 3,889 Total FY 2009 $ 1,166,667 $ 18,472 Drawdown October $ 291,667 $ 2,041,667 $ 3,403 Drawdown November $ 291,667 $ 1,750,000. $ 2,917 Drawdown December $ 291,667 $ 1,458,333 $ 2,431 Drawdown January $ 291,667 $ 1,166,667 $ 1,944 Drawdown February $ 291,667 $ 875,000 $ 1,458 Drawdown March $ 291,667 $ 583,333 $ 972 Drawdown April $ 291,667 $ 291,667 $ 486 Drawdown May $ 291,667 $ - 0 Total FY 2010 $ 2,333,333 $ 50,556 Ordinance No. 3029 Page 31 of 33 RESOLUTION N0.2008-02 A RESOLUTION of the Board of Directors of Reinvestment Zone Number 1, City of North Richland Hills adopting certain amendments to the project plan and financing plan for Reinvestment Zone Number 1, City of North Richland Hills, and authorizing and approving other matters incidental and related thereto. WHEREAS, the City of North Richland Hills, Texas (the "City") has created Reinvestment Zone Number 1, City of North Richland Hills (the "Zone"); and WHEREAS, in connection with the Zone there has been adopted a project plan and reinvestment zone financing plan {each a "Plan", and jointly, the "Plans") that contain, among other items, a map showing existing uses and conditions of real property in the zone and a map showing proposed improvements to and proposed uses of that property; and WHEREAS, the Board of Directors of the Zone (the "Board") desires to amend the Plans to expand the boundaries of the Zone to include additional property in the Zone; and WHEREAS, the Board has prepared a first amendment to the project plan and a first amendment to the reinvestment zone financing plan (jointly, the "First Amendments"), each of which details the amendments to be made to the respective Plan, and the Board desires to adopt such First Amendments; now, therefore, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF REINVESTMENT ZONE NUMBER 1, CITY OF NORTH RICHLAND HILLS: SECTION 1. The First Amendments, attached hereto as Exhibit A and Exhibit B and incorporated herein by reference, are hereby approved and adopted pursuant to V.T.C.A., Tax Code, Section 311.011(e), as amended. SECTION 2. The Board hereby authorizes and directs that a copy of this Resolution be forwarded to the City Council of the City as a recommendation of the Board for the approval by the City Council of the First Amendments. SECTION 3. This Resolution shall take effect upon its adoption. PASSED, APPROVED AND ADOPTED this the 6~' day of November, 2008. BOARD OF DIRECTORS, REINVESTMENT Z NE NUMBER 1, CITY O ORTH I HLAND HILLS By: Chairman ATTEST: ecretary 65216019.1/10611340 Ordinance No. 3029 Page 32 of 33 Economic Development Capital Projects TIF 7 Expansion FD06~9 PROJECT DESCRIPTION & JUSTIFICATION This project consists of improving two intersections and burying approximately 1.25 miles of above ground utilities along Boulevard 26. The two intersections are Boulevard 26 at Rufe Snow Drive and Glenview Drive. Infrastructure improvements including landscaping and streetscaping approved bythe Richland Hills and North Richland Hills Oversight Committee are planned at the intersections. TIF 1 includes participation from BISD, Tarrant Hospital District, Tarrant County Cdlege and the City of NRH. These intersection improvements as well as burying of approximately 1.25 miles of above ground utilities are recommended as part of the South Grapevine Corridor Highway Study and Expansion of Reinvestment Zone Number 1 to stimulate private development within and expansion of this corridor. The intersection improvements are a jant venture between the City's of North Richland Hills and Richland Hills. Richland Hills will pay $450,000 toward the cost of intersection improvements. The City's portion is proposed to be funded by issuance of Certificates of Obligation in 2009 to be paid back from TIF 1 property taxes. The TIF 1 amended project plan and finance plan have been approved by TIF Board Resolution and City Counal Ordinance 3029. Note: The "Other" dates listed in the Project Schedule includes time for TxDOT approval. PROJECT STATUS Original 2008109 Original 2008!09 Start Date Revision End Date Revision EngineeringlDesign 0512006 0312009 11!2009 Construction 02/2009 01!2010 0712009 01!2011 Other 04!2007 1.2!2008 0612009 REVISION EXPLANATION Revise the FY08l09 Capital Projects budget to: 1) change this project title from Boulevard 26 Intersection Improvements to "TIF 1 Expansion" and 2) increase the costs for intersection improvements from. $450,000 to $.500,000 as well as include $3 million for burial of existing above ground utility lines located on the North Richland Hills' side of Boulevard 26 between. the intersections of Glenview Dr. and Rufe Snow Dr. The source of funds will be 2009 certificates of obligation. The certificates of obligation principal and interest will be paid from property taxes contributed from the City of NRH, BISD, Tarrant County, Tarrant County Hospital District, and Tarrant County College District. The costs for design, surveying, and easement acquisition for burying the existing above ground utilities are estimated at $400,000 and have been included in the Engineering phase. FINANCIAL DATA 2QQ8/2009 2008J2009 Total Funding Source Amount to 2008/2009 Pre~aased: Revised Remaining Project Date Adopted Recision '' Budget Balance Cost Prior Funding Allocations: Sales Tax $150,000 $300,000 ($40,000) $0 $0 $0 0 Proposed Funding Allocations: 2009 Certificates of Obligation 0 0 3,500,000.: 3,500,000. 0 3,500,000 Total $150,000 _ $300,000 $3,050,Og0 (, $3,500,000 $0 $3,500,000 Project Expenditures _ _ Engineering $150,000 $0 $425,000` $575,000 $0 $575,000 (includes burial of utility lines) Construction 0 300,OOD 2,625,000> 2,925,000 0 2,925,000 (includes burial of utility lines) Other 0 _ 0 Q 0 0 D Total $150,000 $300,000 _ _ $3,050,0(]0 ~ _ $3,500,000 _ $0 $3,500,000. IMPACT ON OPERATING BUDGET No operating impact is anticipated. Annual Operating Impact 2009!201.0 _ 20010!2011 _ 2011/2012 _ 2012/2013 2013!2014 Total Projected $0 $0 $0 $0 $0 $0 Ordinance No. 3029 Page 33 of 33