HomeMy WebLinkAboutTIF1 2008-11-06 AgendasREINVESTMENT ZONE NUMBER 1, CITY OF NORTH RICHLAND HILLS
BOARD OF DIRECTORS MEETING
THURSDAY, NOVEMBER 6, 2008
CITY HALL PRE-COUNCIL ROOM
4:00 P.M.
AGENDA
1. Call to Order
2. Approval of October 2, 2007 Board Minutes
3. Discuss and Approve TIF No. 1 2008 Annual Report (TIF #1 2008-01)
4. Consider all matters incident and related to approving and authorizing certain
amendments to the project plan and reinvestment zone financing plan for
Reinvestment Zone Number 1, City of North Richland Hills, including the
adoption of a resolution pertaining thereto (TIF #1 2008-02)
5. Adjournment
Posted this the 31St day of October, 2008, Time: ~ : ~-5 . j'e't
~~~~~ ~'1~-~a~
Ph-yl s O'Neal
Finance Assistant
MINUTES OF THE TIF BOARD MEETING FOR REINVESTMENT ZONE #1 OF THE
CITY OF NORTH RICHLAND HILLS, TEXAS BOARD OF DIRECTORS MEETING -
PRE-COUNCIL ROOM AT CITY HALL
TUESDAY, OCTOBER 2, 2007 - 4:00 P.M.
Present:
Oscar Trevino, Chairman
Scott Turnage
John Lewis
Dr. Larry Darlage
Carolyn Sims
Mayor
Council Member
Council Member
Tarrant County College
Precinct Administrator for Commissioner
Gary Fickes, Northeast SubCourthouse,
Precinct #3
Tarrant County Hospital District
Birdville I.S.D.
Drenda Witt
Dolores Webb
Others Present:
Larry J. Cunningham
Jim Starr
Bo Bass
Karen Bostic
Larry Koonce
Chris Amarante
Vickie Loftice
Elizabeth Reining
Thad Chambers
Mary Peters
Dr. Quentin Burnett
Lisa McMillan
Scott Herndon
David Medanich
Phyllis O'Neal
Absent:
Tim Welch
David Whitson
City Manager
Interim Assistant City Manager
Assistant City Manager
Managing Director of
Administrative/Fiscal Services
Director of Finance
Construction Manager
Director of Parks and Recreation
Assistant to the City Manager
Director of Economic Development
Public Information Officer
Birdville I.S.D.
Tarrant County Commissioner's Court
Tarrant County Hospital District
First Southwest Company
Finance Assistant
Council Member
Council Member
1.
CALL TO ORDER
Mayor Trevino called the meeting to order at 4:00 p.m.
2.
APPROVAL OF June 21, 2005 BOARD MINUTES
Drenda Witt moved to approve the minutes with the correction of the spelling of Glen
Whitley's name. Councilman Lewis seconded the motion.
Motion to approve carried 7-0.
3.
APPOINTMENT OF VICE-CHAIRMAN AND SECRETARY
Councilman Lewis nominated Dolores Webb to serve as Vice-Chairman. Dr. Darlage
seconded the motion.
Motion to approve carried 7-0.
Dolores Webb nominated Councilman Lewis to serve as Secretary. Dr. Darlage
seconded the motion.
Motion to approve carried 7-0.
4.
DISCUSS 2007 ANNUAL REPORT
Director of Finance Larry Koonce provided an overview of TIF No. 1 Executive
Summary. Mr. Koonce reviewed the history of TIF No. 1. $850,000 of certificates of
obligation was sold out of the TIF to address the drainage. The original debt was
created with a 20 year maturity. Mr. Koonce advised board if current values held steady
and property owners pay taxes on the TIF No. 1 properties the bonds could be paid off
early in the year 2008. In fiscal year 2007, taxes were received from the different
entities in the amount of $216,838. The outstanding principal and interest at year end in
the amount of $577,745 with a cash balance of $728,000 makes it possible to be able to
pay off the debt. There is approximately 7.8 million dollars in improvements on the
property since the time the TIF was created with approximately $9 million in total value.
He also indicated that over 260,000 square feet of the 300,000 square foot business
center is currently being leased. Tenants of the center include ATI Career Training
Center, Silver Leaf Resorts, Walter Mortgage Company, ECAP (Training for Teacher
Certification}, Whitley Academy Charter School and Crossroads Church. The number
of jobs created is 737.
Councilman Turnage moved to accept the 2007 Annual Report. Ms. Webb seconded
the motion.
Motion to approve carried 7-0.
2
5.
DISCUSS THE FEASIBILITY OF DEFEASANCE (PAYOFF) OF OUTSTANDING
DEBT AND IMPACT ON TIF NO. 1 DISTRICT
Director of Finance Larry Koonce presented the Board with the first option of
defeasance that would be on February 15, 2008. The approximate cash balance in
February will be $740,000 with payoff at $505,000, leaving approximately $235,000 to
be distributed back to the participating entities. Interest savings will be from $90,000 to
$100,000 if the bonds are defeased.
Mr. Koonce introduced David Medanich of First Southwest to discuss the process to
defease the TIF debt. Mr. Medanich advised the Board this was a unique TIF with the
participation of the school district. The TIF could be defeased at any time starting
February 15, 2008 until 2018. Reasons why you would not want to defease would be if
the Board had other projects they would like to consider. The TIF is currently earning
about 5% interest and debt would be paid off at 4%. Mr. Medanich advised the 1998
obligations are callable now and an escrow would be created for the 2005 obligations to
exactly offset the payment of the bonds. Once you effect that, the TIF is defeased. The
debt legally comes off the books and the entity goes away. Once the Board gives
direction to defease the bonds, First Southwest will buy the securities to create the
escrow and then an accounting firm will give a report to say the debt has been legally
defeased.
Mayor Trevino suggested board members go back to their organizations to get direction
from them. Before deciding on defeasance of the debt, expanding the TIF, or creating a
new TIF, Mayor Trevino would like to review the Boulevard 26 clean-up further up
towards TCC. Ms. Webb questioned the defined area of the zone and would like to
know what additional areas would be included if the Board chose to expand the zone.
Mr. Medanich advised the Board if the zone was expanded then new projects could be
examined and revenues could be collected from all the entities with the exception of the
school district in the expanded area. Revenues could still be collected from the school
district in the existing zone and used in the expanded zone. Mr. Koonce advised the
Board that interest earnings alone were not the only aspect to be considered. Taxes
would still need to be paid from the entities into the zone as long as the TIF remained
open.
Mr. Cunningham advised the Board that the City had talked with Representative
Hancock last year about the practicality of trying to amend the TIF law to allow two
different jurisdictions such as City of Richland Hills and North Richland Hills with joint
interest in redeveloping Boulevard 26 to participate in the same zone. The current
legislation does not allow two different city jurisdictions to enter into a TIF. He
questioned if it would be best to dissolve the current TIF and start a new TIF if
legislation could be amended to incorporate the City of Richland Hills. Staff would like
an additional four to six weeks to review the practicality of this and also to identify
additional projects the Board could consider. Mayor Trevino suggested the mall area
should be considered in expanding the TIF.
3
Ms. Sims asked what would be considered if an additional 4-6 weeks was allowed.
Mayor Trevino advised staff will review the feasibility of continuing the zone. Mr.
Cunningham suggested future public improvements to be considered could be the
intersection improvements, the City of Richland Hills public facility on the corridor if this
is a project they are considering, and additional street improvements. Mr. Cunningham
advised when the Board meets again recommendations will be made whether to
proceed with defeasance or expanding the district.
Ms. Webb advised that the school board knew of no projects that would fit into the
continuation of the TIF or the expansion of the TIF.
Ms. Witt recognized Lisa McMillan of Tarrant County. Ms. McMillan asked if an entity
chooses to opt out and debt is paid off could the other participants continue with the
expanded district? Mr. Medanich advised he would look into the question.
Mayor Trevino directed the Board to allow staff six weeks to look into the feasibility of
defeasance or the expansion of the TIF.
Ms. Webb moved for the Board to meet again in four to six weeks after staff had time to
explore the options. Ms. Sims seconded the motion.
Motion to approve carried 7-0.
6.
ADJOURNMENT
Mayor Trevino adjourned the meeting at 4:24 p.m.
4
TI F No. 1
Subject: Discuss and Approve TIF No. 1 2008 Annual Resort Board Meeting Date:
11/06/2008
Agenda Number: 2008-01
Larry Koonce, Director of Finance City of North Richland Hills will present the attached
executive summary, annual report and comparison of the original financing plan with the
actual results to date. The figures for fiscal year ending September 30, 2008 are
preliminary estimates and will be updated when finalized. The annual report will be
submitted to the State Comptroller before December 31, 2008 and distributed to the Board
and taxing entities.
In fiscal year 2008, the TIF No. 1 received taxes in the amount of $203,909 from property
owners. For the year ending September 30, 2008, outstanding principal and interest on the
Certificates totaled $379,200. Principal, interest and associated payments totaled $61,373
for fiscal year 2008, and the end of the year cash balance is estimated to be $903,311.
After the presentation of financial status of TIF No. 1, we recommend the Board take
action as to the acceptance of the report.
INFORMAL REPORT TO BOARD OF DIRECTORS
~~ Date: November 6, 2008
~~~
'~ ~~`~ Subject: Tax Increment Reinvestment Zone No. 1
Executive Summary, Board Meeting, November 6, 2008
Attached for your information is "Tax Increment Reinvestment Zone No. 1, Preliminary Financial
Estimates, For the Year Ended September 30, 2008". TIF No. 1 was created by the City of North
Richland Hills in 1998. The TIF was created to provide public drainage improvements around the
300,000 square foot Richland Plaza Shopping Center. The shopping center had declined to the point
that nearly all tenants had vacated, and total values were a little over $1 million. It was believed that
unless public drainage improvements were made to divert flooding from the Richland Plaza parking lot
to Mackey Creek, the development was destined to further decay and decline.
At the time the TIF No. 1 was created, the City of NRH, Birdville Independent School District, Tarrant
County, Tarrant County College, and Tarrant County Hospital District all agreed to participate at 100%
for the life of the TIF. Certificates of Obligation were sold in the amount of $850,000 for the TIF portion
of the $1.3 million public drainage project (the balance was paid by the City of NRH). The TIF debt has a
maturity of twenty years to 2018. The Certificates were issued in 1998 and the public drainage
improvements were completed in fiscal year 2000.
In fiscal year 2008, the TIF No. 1 received taxes in the amount of $203,909 from property owners. For
the year ending September 30, 2008, outstanding principal and interest on the Certificates totaled
$379,200. Principal, interest and associated payments totaled $61,373 for fiscal year 2008, and the end
of the year cash balance is estimated to be $903,311.
Also attached to this executive summary is a "Comparison of Original Plan to Actual Development".
The comparison shows that at the end of fiscal year 2008 cumulative revenues (property taxes and
interest earnings) are 147% of the original plan. The comparison shows that improvement value
(Captured Valuation) is greater than originally estimated. The $7.8 million Improved value as of January
2007 (fiscal year 2008) is $2.4 million higher than originally estimated.
The Hills, a 300,000 square foot business center in the southern most part of North Richland Hills has
added 198 employees this past year bringing the total employee count to 935. Major tenants include
ATI Career Training Center who lease 88,830 square feet with 175 employees. Silverleaf Resorts
leases out 59,000 square feet with 408 employees. Other tenants include LetsTalk.com, ECAP (training
for teacher certification), Walter Mortgage Company, Winfree Academy Charter School and Crossroads
Church.
Respectfully submitted,
Larry Koonce
Director of Finance
Attachments:
TIRZ No.1 Annual Report FY 2008
Comparison of Original TIF No. 1 Plan to Actual Development
ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS ^
City of North Richland Hills
Tax Increment Reinvestment Zone No.1
Report to Board
Estimated Year Ended September 30, 2008(unaudited)
Amount & Source of Revenue in the Tax Increment Fund FY 2008:
Property Tax Revenues $ 203,909
Interest Income $ 28,970
Total Revenues in Fiscal Year 2008 $ 232,879
Amount and Purpose of Expenditures of the Fund FY 2008:
Principal, Interest, Issuance & Paying Agent
Payments on Certificate Indebtedness $ 61,373
Total Fund Expenditures in Fiscal Year
2008 $ 61,373
Principal & Interest due on outstanding indebtedness as of September 30, 2008:
Principal Outstanding $ 305,000
Interest Outstanding $ 74,200
Total Principal & Interest Outstanding 9-30-
2008 $ 379,200
Captured Appraised Value shared by the Municipality & Other Taxing
Entities and total amount of tax increments received
Captured Tax Tax Revenue
1998 Base Year Taxable Value Appraised Ratel$100 Received FY
Taxing Unit Appraised Value 2007 Value 2007 FY 2008 2008
City of North Richland Hills $1,152,929
Birdville I.S.D. $1,152,929
Tarrant County $1,152,929
Tarrant County Hospital District $1,152,929
Tarrant County College $1,152,929
This report submitted by
Larry Koonce
Director of Finance
City of North Richland Hills, Texas
$8,961,719 $7,808,790 $0.570000 $44,510
$8,961,719 $7,808,790 $1.405000 $109,714
$8,961,719 $7,808,790 $0.266500 $20,810
$8,961,719 $7,808,790 $0.230397 $17,991
$8,961,719 $7,808,790 $0.139380 $10,884
$203,909
K:acctltifslTlF1 Report to Board Nov 2008.x1s
City of North Richland Hills
Tax Increment Reinvestment Zone No. 1
Comparison of Original Plan to Actual Development
FY 2008
Original Financing Plan 1998
Fiscal Captured Tax Interest Total Certificate Cumulative
Year Valuation Revenues Earnings Revenues Debt Coverage
1999 $ 2, 500, 000 $ 65, 678 $ 30, 863 $ 96, 541 $ 96, 541 $
2000 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 81,998 $ 59,249
2001 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 79,813 $ 1 ~O,G43
2002 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 77,628 $ 184,1 ~2
2003 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 75,443 $ 29,94
2004 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 73,257 $ 317,$x$
2005 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 71,072 $ 38~,Q
2006 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 68,887 $ 460,3
2007 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 66,702 $ ~~4,$5
2008 $ 5,375,000 $ 141,207 $ - $ 141,207 $ 61,373 $ X14,$90
Financing Plan As of September 30, 2008 (After Ten Years)
Interest
Fiscal Captured Property Tax Earnings & Total Certificate Cumulative
Year Valuation Revenues Other Revenues Debt Coverage
1999 $ - $ - $ 54,620 $ 54,620 $ 98,259 $ (4,639)'
2000 $ - $ - $ 47,253 $ 47,253 $ 82,228 $ (78,x'14)'
2001 $ 5,975,103 $ 164,558 $ 9,917 $ 174,475 $ 79,954 $ 1'5,907''
2002 $ 6,566,861 $ 180,921 $ 160 $ 181,081 $ 77,768 $ 11'9,220''
2003 $ 6,533,845 $ 184,991 $ 1,682 $ 186,673 $ 75,583 $ 230,310''
2004 $ 5,564,867 $ 157,634 $ 2,730 $ 160,364 $ 73,398 $ 31'7,276''
2005 $ 5,564,867 $ 157,723 $ 8,963 $ 166,686 $ 71,214 $ 41'2,74$''
2006 $ 6,342,189 $ 179,755 $ 22,358 $ 202,113 $ 66,521 $ 548,340''
2007 $ 7,796,348 $ 216,838 $ 30,185 $ 247,023 $ 63,558 $ 731,$05''
2008 $ 7,808,790 $ 203,909 $ 28,970 $ 232,879 $ 61,373 $ 903,311''
K:acctltifs/TIF1 Report to Board Nov 2008.xIsOrig Plan vs actual
TI F No. 1
Subject: Consider all matters incident and related to Board Meeting Date:
approving and authorizing certain amendments
11/06/2008
to the project plan and reinvestment zone Agenda Number: 2008-02
financing plan for Reinvestment Zone Number 1,
City of North Richland Hills, including the adoption of
a resolution pertaining thereto
Over the last several months, the City of North Richland Hills has been working on a plan to
expand TIF Number 1 boundaries along the Boulevard 26 corridor. The City has met with
representatives from BISD, Tarrant County, Tarrant County Hospital District, and Tarrant County
College District to present the expansion plan. All entities have expressed an interest in
considering this expansion. One final meeting is scheduled with the county entities on October 30t"
to discuss the final draft plan.
This TIF is one of the smallest in the county and probably in the state, but has had tremendous
impact on the City the County and the School District. The original plan created in 1998 was
$850,000 for drainage improvements. It has been very successful in increasing real property
values and business personal property values over the last 10 years from $1 million to nearly $16
million within the existing TIF boundaries, which includes the old Richland Plaza shopping center,
now called The Hills business center.
The proposed expansion is $3.5 million for intersection improvements and the burial of utility lines
along Boulevard 26 in North Richland Hills. We believe this TIF expansion will greatly enhance
economic revitalization along this corridor, which will increase property taxes for each of our
organizations.
The schedule to complete this TIF expansion before December 31St is the following:
October 30t": City staff met with representatives of Tarrant County, Tarrant County Hospital
District, and Tarrant County College District to discuss the final draft of the project and finance
plan.
October 31St: The City posted public notice of TIF Board meetings and e-mailed agendas and
minutes to board members and public officials.
November 6t": A meeting of the TIF 1 Board to approve a resolution in support of expanding TIF1.
November 17t": Publish notice of the City Council public hearing to approve the TIF 1 expansion.
November 24t": City of North Richland Hills Council meeting to have a public hearing and approve
ordinances related to TIF 1 expansion.
Month of December (and January if necessary): The governing bodies of the participating
entities consider approving an amendment to their respective participation agreements.
The resolution for consideration approves the project plan and finance plan of the expanded TIF
Number 1. The resolution also recommends that the City Council of the City of North Richland
Hills approve the expansion of TIF Number 1.
Recommendation: Approve Resolution Number 2008-001.
RESOLUTION NO.
A RESOLUTION of the Board of Directors of Reinvestment Zone Number 1,
City of Noah Richland Hills, Texas adopting certain amendments to the
project plan and financing plan far 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 f nancing plan beach 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 ~ ointly, 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 6th day of November, 2008.
BOARD OF DIRECTORS,
REINVESTMENT ZONE NUMBER 1,
CITY ~F NORTH RICHLAND HILLS, TEXAS
By'
Chairman
ATTEST:
Secretary
65~ 16019.111061 i 3~0
EXHIBIT A
AMENDED PROJECT PLAN
6521b019.1110b11340
CITY OF
NORTH RICHLAND HILLS
EXPANSION OF REINVESTMENT ZONE NUMBER 1
PROJECT PLAN
November 24, 2008
PREPARED BY THE CITY OF NORTH RICHLAND HILLS
PLANNING AND DEVELOPMENT DEPARTMENT
CITY OF NORTH RICHLAND HILLS
EXPANSION OF REINVESTMENT ZONE NUMBER 1
PROJECT PLAN
As required by Chapter 311, Title 3, Subtitle 6 of the Texas Tax Code, the City of North
Richland Hills, Texas (the "City"} submits the following Project Plan forthe 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.
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 $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
2
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
MAP
$3,500,000
Attached is a map showing the location of the proposed public improvements along
Boulevard 26 as described in the expansion project plan.
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.
3
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.
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EXHIBIT B
AMENDED FINANCE PLAN
65216019.111~61134~
CITY OF
NORTH RICHLAND HILLS
EXPANSION OF REINVESTMENT ZONE NUMBER 1
FINANCE PLAN
November 24, 2008
PREPARED BY THE CITY OF NORTH RICHLAND HILLS
FINANCE DEPARTMENT
CITY OF NORTH RICHLAND HILLS
EXPANSION OF REINVESTMENT ZONE NUMBER 1
FINANCING OPTIONS
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.
2
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
Bond Holders
(1) If necessary.
City of North Richland
Hills Ad Valorem Property
Tax Revenues ~~~
(2) Investment earnings on construction fund during construction
period only.
3
CITY OF NORTH RICHLAND HILLS
EXPANSION OF REINVESTMENT ZONE NO. 1
FINANCE PLAN
DETAIL DESCRIPTION AND COST OF PROJECTS
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
5
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
6
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
7
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
s
CITY OF NORTH RICHLAND HILLS
EXPANSION OF REINVESTMENT ZONE NUMBER 1
FINANCE PLAN
(ECONOMIC FEASIBILITY STUDY)
PROJECTED TAX INCREMENT FUND CASH FLOWS
9
City of North Richland Hills
Expansion of RZ Number 1
Estimated Tax Revenues
City of North Richland Hills
Expansion of RZ Number 1
Estimated Coverage Calculations
City of North Richland Hills
EXPANSION OF RZ NUMBER 1
Estimated Debt Calculations
Debt Structure Level Principal Payments
Fiscal Year Issued 2009
Principal Amount $ 3,500,000
Maturity 9 years
Interest Rate 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, 000
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 $ 923,806 $ 4,423,806
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City of North Richland Hills
EXPANSION OF 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
13