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HomeMy WebLinkAboutTIF2 2008-11-06 AgendasREINVESTMENT ZONE NUMBER 2, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING THURSDAY, NOVEMBER 6, 2008 CITY HALL PRE-COUNCIL ROOM 5:00 P.M. AGENDA 1. Call to Order 2. Approval of October 2, 2007 Board Minutes 3. Discuss and Approve TIF No. 2 2008 Annual Report (TIF #2 2008-01) 4. Vickie Loftice, Director of Parks and Recreation, City of North Richland Hills, will give an overview/status report on the recreation center project. (TIF #2 2008-02) 5. Adjournment Posted this the 31St day of October, 2008, Time: ~: ~5 A. i'Yt Phyllis 'Neal Finance Assistant REINVESTMENT ZONE NUMBER 2, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING THURSDAY, NOVEMBER 6, 2008 CITY HALL PRE-COUNCIL ROOM 5:00 P.M. AGENDA 1. Call to Order 2. Approval of October 2, 2007 Board Minutes 3. Discuss and Approve TIF No. 2 2008 Annual Report (TIF #2 2008-01) 4. Vickie Loftice, Director of Parks and Recreation, City of North Richland Hills, will give an overview/status report on the recreation center project. (TIF #2 2008-02) 5. Adjournment MINUTES OF THE TIF BOARD MEETING FOR REINVESTMENT ZONE #2 OF THE CITY OF NORTH RICHLAND HILLS, TEXAS BOARD OF DIRECTORS MEETING - PRE-COUNCIL ROOM AT CITY HALL TUESDAY, OCTOBER 2, 2007 - 4:30 P.M. Present: Oscar Trevino, Chairman Suzy Compton Scott Turnage John Lewis Dr. Larry Darlage Carolyn Sims Mayor Mayor Pro Tem Council Member Council Member Tarrant County College Precinct Administrator for Commissioner Gary Fickes, Northeast SubCourthouse, Precinct #3 Tarrant County Hospital District Drenda Witt 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 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 Council Member Council Member 1. CALL TO ORDER Mayor Trevino called the meeting to order at 4:30 p.m. 2. APPROVAL OF June 21, 2005 BOARD MINUTES Councilman Lewis moved to approve the minutes. Dr. Darlage seconded the motion. Motion to approve carried 7-0. 3. APPOINTMENT OF VICE-CHAIRMAN AND SECRETARY Councilman Lewis nominated Drenda Witt to serve as Vice-Chairman. Dr. Darlage seconded the motion. Motion to approve carried 7-0. Drenda Witt nominated Dr. Larry Darlage to serve as Secretary. Mayor Pro Tem Suzy Compton seconded the motion. Motion to approve carried 7-0. 4. DISCUSS 2007 ANNUAL REPORT Finance Director Larry Koonce provided an overview of TIF No. 2 Executive Summary. The public improvements in terms of the projects total approximately $40 million and total improvements including the developer improvements with streets and water and sewer infrastructure total approximately $25 million. The TIF is responsible for the $40 million in public projects. The three projects included in this TIF district are the library project, the recreation center project and the Tarrant County College conference center project. The district received $1,722,826 million from all taxing jurisdictions in fiscal year 2007. In April 2003, the City of North Richland Hills issued certificates of obligations in the amount of $1,450,000 for land acquisition, building program planning and architectural design services for the library project. In April 2006, the City of North Richland Hills issued an additional $8,750,000 for construction of the library. Aground breaking ceremony for the library was held in October 2006 is estimated completion and opening in spring 2008. Mr. Koonce outlined a few of the reasons why property tax collections are lagging from the original plan citing fallout from 9/11/2001, less business development and more residential development, more tax exempt development than anticipated, and protests to reduce property values by owners/developers over the years to Tarrant Appraisal District. Mayor Trevino noted the TIF was still a very viable plan with just a two and a half year lag. Dr. Darlage questioned how far behind is the library in terms of when it was projected originally. Larry Koonce advised it was five years behind. He advised the design on the conference center would begin around 2010 or 2011. Councilman Lewis recognized the point of view the City will use $1.1 million in 4B sales tax to help with the start up of the design for the recreation center project. Dr. Larry Darlage moved to accept the 2007 Annual Report. Dolores Webb seconded the motion. Motion to approve carried 7-0. 5. DISCUSS PROGRESS OF THE TIF N0.2 LIBRARY PROJECT REPORT Chris Amarante, Construction Manager for the City of North Richland Hills presented a PowerPoint presentation updating the Board on the progress of the TIF No. 2 library project. Total cost of the library is $10.2 million. The proposal came in under budget and an additional 9,858 square feet expansion was added in the project. The expansion area will be shell space and air conditioned only. Funding for the completion of the space will be provided by the City at a later date. Ground breaking was in October 2006 and the scheduled completion date is February 2008. The project is currently 68% complete. When completed, the library will support 190,000 volumes of books and will have two public meeting rooms, a local history room and a cafe. Chris Amarante advised the Board of the construction materials used in the building of the library and provided pictures of the building project during the different phases of construction. The Board was advised the second floor of the building was reinforced for books also. The library faces Hawk Avenue. The street's name was changed at the request of the senior class of Birdville High. The library is located next to The Venue. After brief discussions and questions, the Board was advised the original plan was for a 60,000 square feet total building, 45,000 square feet build out and 15,000 shell space. The bid came in at approximately 58,000 square feet total building, 49,000 square feet build out and almost 10,000 square feet shell space. 6. REPORT ON THE DESIGN OF THE TIF N0.2 RECREATION CENTER Vickie Loftice, Director of Parks and Recreation for the City of North Richland Hills presented a PowerPoint presentation updating the Board on the design of the TIF No. 2 recreation center project. Beginning in October, RFQ's for professional services will be sent out. It is anticipated designs in the design phase will be reviewed for the next 12 to 18 months. Staff will be looking at the original elements that were discussed in 1999 when the TIF plan was originally approved. Cost benefits will be reviewed and public input taken into consideration. The facility will be close to 100,000 square feet depending on the construction costs. The total project cost is $21.9 million with $1.1 million of this coming from the 4B sales tax. The design phase will be supported by the tax. The debt portion of the project will be supported by the TIF. Estimated completion date will be the later part of 2010. Some of the amenities that will be looked at will be fitness facilities, indoor aquatics, a double gymnasium, banquet or rental space, and a lounge in the entry way. Also, considered will be family locker rooms and restrooms along with maintenance and storage areas. A committee will select the architect evaluating the various design options and taking into consideration public input. The Board was advised The Crossing and The Venue were developing well with 55,000 square feet of retail in The Venue and approximately ten percent of the apartments pre- leased. 7. ADJOURNMENT Mayor Trevino adjourned the meeting at 5:10 p.m. TI F No. 2 Subject: Discuss and Approve TIF No. 2 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. The report shows that actual property tax collections as compared to the original plan are lagging. Reasons that tax revenues have come slower are enumerated in the executive summary. Actual property tax revenues in fiscal year 2008 were $2,065,381 compared to the original plan estimate of $3,548,682. Taxes collected since inception total $8,316,010 compared to $14,808,504 estimated in the original plan. Cash balances including tax collections, interest earnings and certificate of obligation proceeds as of September 30, 2008 are approximately $9.8 million. After the presentation of financial status of TIF No. 2, 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. 2 Executive Summary for TIF Board Meeting, November 6, 2008 Attached for your information is "Tax Increment Reinvestment Zone No. 2, Preliminary Financial Estimates, For the Year Ended September 30, 2008". TIF No. 2 was created by the City of North Richland Hills in 1999. The District was created to provide public improvements that would benefit the City of North Richland Hills, Tarrant County College, Tarrant County and Tarrant County Hospital District. Planned public improvements include a conference center, a recreation center, a library and infrastructure improvements in the Home Town NRH development. Total public improvements are estimated at $65.2 million including developer infrastructure. The District was created for twenty-eight years to provide for the retirement of planned debt issuance for financing of the improvements. The City of NRH and Tarrant County College agreed to contribute 100% for the full twenty-eight years. The County and Hospital District agreed to participate up to a fixed dollar amount that was anticipated to accumulate over approximately afifteen-year period based on estimated property values. At the time the District was created the main developer, E-Systems, estimated that Home Town NRH would be comprised of approximately 70% residential and 30% commercial and retail development. The District's boundaries also include other developments such as the Crossing (Kohl's) Center, Home Depot, Blue Line Ice and the Barnett property. The plan (based on a study done by Zimmerman) Volk) estimated that property values would increase by over $370 million in ten years. Over the life of the District, the values were estimated to generate approximately $82.2 million in total tax revenues to fund the planned public improvements. The captured appraised value in 2007 (fiscal year 2008) was $169,467,761 for the City of NRH and $184,519,875 for Tarrant County. The differences are the exemptions granted by the taxing jurisdictions. The District received $2,065,381 from all taxing jurisdictions in fiscal year 2008. The library project was completed and the new library opened in the spring of 2008. The project was completed within the original TIF 2 finance plan budget of $10.2 million. The City of North Richland Hills issued certificates of deposit in the amount of $2,000,000 for the design of the recreation center project in the spring of 2008. The City has also dedicated $1,100,000 of 4b sales tax toward the library project in compliance with the TIF 2 finance plan. Design and a site location for the project are currently being considered. Also attached to this executive summary is a "Comparison of Original Plan to Actual Development". The report shows that actual property tax collections as compared to the original plan are lagging. Actual property tax revenues in fiscal year 2008 were $2,065,381 compared to the original plan estimate of $3,548,682. Taxes collected since inception total $8,316,010 compared to $14,808,504 estimated in the original plan. Cash balances including tax collections, interest earnings and certificate of obligation proceeds as of September 30, 2008 are approximately $9.8 million. ISSUED BYTHE CITY MANAGER NORTH RICHLAND HILLS, TEXAS Reasons that property tax collections have come slower and in some cases are lower than originally estimated, include, but are not limited to the following: 1. Fallout from 9/11/2001- economic uncertainty affecting in the early stages of development. 2. Less business development compared to the original TIF plan: more residential development than commercial or office development in the entire TIF district. 3. Due to market conditions Arcadia has substituted residential development in areas originally planned for commercial development. 4. More tax exempt development than anticipated in the original TIF plan. This includes, for example, school and church development. These amenities have added to the quality of life within the district, but have reduced values from the tax rolls. 5. Protests by owners/developers over the years to the Tarrant Appraisal District to reduce property values, thereby reducing revenues. Respectfully submitted, Larry Koonce Director of Finance Attachments: TIRZ No. 2 Preliminary Annual Report FY 2008 Comparison of Original TIF No. 2 Plan to Actual Development City of North Richland Hills Tax Increment Reinvestment Zone No. 2 Report to the Board Estimated Year Ended September 30, 2008 (unaudited) Amount & Source of Revenue in the Tax Increment Fund FY 2008: Property Tax Revenues Collected $ 2,065,381 Interest Income $ 385,999 Total Revenues in Fiscal Year 2008 $ 2,451,380 Amount and Purpose of Expenditures of the Fund FY 2008: Principal, Interest, Issuance & Paying Agent Payments on Certificate Indebtedness $ 909,424 Library Project Expenditures Construction Fund $ 3,606,488 Recreation Center Project Expenditures Site & Design $ 973,563 Total Fund Expenditures in Fiscal Year 2008 $ 5,489,475 Principal & Interest due on outstanding indebtedness as of September 30, 2008: Principal0utstanding $ 11,090,000 Interest Outstanding $ 4,219,804 Total Principal & Interest Outstanding 9-30-2008 $ 15,309,804 Captured Appraised Value shared by the Municipality & Other Taxing Entities and total amount of tax increments received Taxing Unit 1999 Base Year Appraised Value Taxable Value 2007 Captured Appraised Value 2007 Tax Ratel$100 FY 2008 Property Tax Revenue FY 2008 City of North Richland Hills $40,577,462 $210,045,223 $169,467,761 $0.570000 $965,966 Tarrant County $40,577,462 $225,097,337 $184,519,875 $0.266500 $491,745 Tarrant County Hospital District $40,577,462 $225,097,337 $184,519,875 $0.230397 $425,128 Tarrant County College $40,577,462 $225,132,337 $184,554,875 $0.139380 $257,233 $2,140,072 Total billings outstanding $ (74,691) Taxes Collected FY 2008 $2,065,381 This report submitted by Larry Koonce Director of Finance City of North Richland Hills, Texas K:acctltifslTlF2Rnnual Report to Board Nov 2008.x1s City of North Richland Hills Tax Increment Reinvestment Zone No. 2 Comparison of Original Plan to Actual Development FY 2008 Original Financing Plan (First Nine Years) June 29, 2000 Fiscal Property Tax Year Captured Valuation Revenues 2000 $ - $ - 2001 $ 12,620,987 $ 148,336 2002 $ 62,888,445 $ 739,138 2003 $ 93, 808, 805 $ 1,102, 550 2004 $ 133,670,655 $ 1,571,053 2005 $ 179, 985, 905 $ 2,115,403 2006 $ 216, 384, 090 $ 2, 543,197 2007 $ 258,666,185 $ 3,040,145 2008 $ 301,934,275 $ 3,548,682 Total Planned Property Tax Revenues $ 14,808,504 Actual Development (Nine Years) Fiscal Property Tax Year Captured Valuation Revenues 2000 $ - $ - 2001 $ 3,523,615 $ 44,830 2002 $ 31, 512, 080 $ 288, 774 2003 $ 58,118, 922 $ 637,156 2004 $ 83,275,381 $ 1,013,512 2005 $ 93, 385, 726 $ 1,143, 840 2006 $ 120, 350, 714 $ 1, 399, 691 2007 $ 149,142, 903 $ 1, 722, 826 2008 $ 184, 519, 875 $ 2, 065, 381 Total Property Tax Revenues $ 8,316,010 K:acct/tifslTlF2 Annual Report to Board Nov 2008.xIsOrig Plan vs actual TI F No. 2 Subject: Overview/Status Report on the Recreation Center Board Meeting Date: Project 11 /06/08 Agenda Number: 2008-02 On March 24, 2008 Council approved a Professional Services Agreement with Brinkley Sargent Architects (BSA) for design and engineering of the new recreation center. The Recreation Center is proposed to be located within the Hometown development area and within the TIF #2 district. For the past several months staff has been working with the Developer to resolve site related issues including parking and infrastructure. After the issues are resolved the Developer's Agreement will be revised, if necessary, and the contract with Brinkley Sargent Architects will be executed. The project time frame including design, engineering and construction is estimated at three years from beginning to completion. The need for a centrally located recreation center was first identified by our citizens in the 1991 Park System Master Plan. Nine years later when the Plan was updated, citizens once again placed a new recreation center as one of the top priorities. This same need was again expressed in the 2007 Park, Recreation and Open Space Master Plan. A Public Attraction Facility Market and Economic Analysis prepared by the Leland Consulting Group and completed in September 1998, quantitatively and statistically demonstrated the need for recreation center services as well. The Leland Study recommended an 80,000 - 100,000 square feet facility with indoor aquatic features and other facility attraction amenities. The development and construction cost for the facility is budgeted at $21,900,000. Of that amount, $1,100,000 will be funded out of the Parks ~/2 Sales Tax with the remaining amount funded from the TIF. This item is for information purposes only. No action from the board is required.