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HomeMy WebLinkAboutTIF1 2009-10-07 Agendas CanceledREINVESTMENT ZONE NUMBER 1, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING WEDNESDAY, OCTOBER 7, 2009 CITY HALL PRE-COUNCIL ROOM 7301 NORTHEAST LOOP 820, NORTH RICHLAND HILLS, TX 4:00 P.M. AGENDA 1. Call to Order 2. Approval of November 6, 2008 Board Minutes 3. Appointment of Vice-Chair and Secretary (TIF #1 2009-01) 4. Discuss and Approve TIF No. 1 2009 Annual Report (TIF #1 2009-02) 5. Consider a resolution of the Board of Directors of Reinvestment Zone Number 1, City of North Richland Hills adoption certain amendments to the financing plan for Reinvestment Zone Number 1, City of North Richland Hills, and authorizing and approving other matters incidental and related thereto (TIF #1 2009-03) 6. Update on TIF No. 1 Expansion Projects. This is an information item only. No Board action is required. (TIF #1 2009-04) 7. Adjournment /~~eef~~nq~ lZ~ch~olu~P~ tv a l a t~~ ~ocf--~ i -~ D~ h~ r ~ ~n-l. ~ ~~ ~: 35 ~ m Posted this the 2"d day of October, 2009, Time: ~ ~ z~C) (J. i~t Phyllis O'Neal Finance Assistant REINVESTMENT ZONE NUMBER 1, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING WEDNESDAY, OCTOBER 7, 2009 CITY HALL PRE-COUNCIL ROOM 7301 NORTHEAST LOOP 820, NORTH RICHLAND HILLS, TX 4:00 P.M. AGENDA 1. Call to Order 2. Approval of November 6, 2008 Board Minutes 3. Appointment of Vice-Chair and Secretary (TIF #1 2009-01) 4. Discuss and Approve TIF No. 1 2009 Annual Report (TIF #1 2009-02) 5. Consider a resolution of the Board of Directors of Reinvestment Zone Number 1, City of North Richland Hills adoption certain amendments to the financing plan for Reinvestment Zone Number 1, City of North Richland Hills, and authorizing and approving other matters incidental and related thereto (TIF #1 2009-03) 6. Update on TIF No. 1 Expansion Projects. This is an information item only. No Board action is required. (TIF #1 2009-04) 7. Adjournment 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 THURSDAY, NOVEMBER 6, 2008 - 4:00 P.M. Present: Oscar Trevino, Chairman Mayor Scott Turnage Council Member John Lewis Council Member Drenda Witt Tarrant County Hospital District Dolores Webb Birdville I.S.D. Others Present: Larry J. Cunningham Jared Miller Jimmy Perdue Karen Bostic Larry Koonce John Pitstick Chris Amarante Vickie Loftice Elizabeth Reining Craig Hulse Mary Peters Dr. Quentin Burnett Lisa McMillan Scott Herndon David Medanich George Staples Absent: City Manager Assistant City Manager Assistant City Manager Assistant City Manager Director of Finance Director of Planning & Development 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 Attorney for the City of North Richland Hills Tim Welch Council Member David Whitson Council Member Dr. Larry Darlage Tarrant County College Carolyn Sims Precinct Administrator for Commissioner Gary Fickes, Northeast SubCourthouse, Precinct #3 1. CALL TO ORDER Mayor Trevino called the meeting to order at 4:00 p.m. 2. APPROVAL OF OCTOBER 2, 2007 BOARD MINUTES Councilman Turnage moved to approve the minutes with the correction of Whitley Academy to Winfree Academy. Dolores Webb seconded the motion. Motion to approve carried 5 -0. 3. DISCUSS AND APPROVE TIF NO. 1 2008 ANNUAL REPORT Finance Director Larry Koonce provided an overview of TIF No. 1 Executive Summary. Taxes in the amount of $203,909 were received from property owners in fiscal year 2008. Outstanding principal and interest on the Certificates totaled $379,200 and principal interest and associated payments totaled $61,373 for fiscal year 2008. The end of the year cash balance is estimated at $903,311. The "Comparison of Original Plan to Actual Development° shows cumulative revenues are 147% ahead of the original plan. The $7.8 million improved value is $2.4 million higher than projected when the original plan was started. The Hills business center has created over 900 jobs with some very good businesses. Dolores Webb moved to approve TIF No. 1 2008 Annual Report. Councilman Lewis seconded the motion. Motion to approve carried 5 -0. 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 Finance Director Larry Koonce presented the plan for expansion of TIF No. 1 providing a map detailing the corridor and how it would affect each of the entities represented. Mr. Koonce reviewed the history and background of TIF No. 1 created in 1998. Drainage improvements of approximately $1.5 million have been completed with the TIF attributing about half. There has been approximately $8 million in new growth. The Hills business center has added 935 new jobs and approximately $7 million in new business personal property on tax rolls. The proposed TIF would increase to 392 acres from the 95 existing acres. Mr. Koonce introduced John Pitstick to present the Project Plan. The proposed expansion area includes all potential commercial property from 820 to the southern boundary with the exception of North Hills Hospital and the old mall property. This includes a shopping center, North Richland Hills Baptist Church, Glenview and Rufe Snow intersections at Boulevard 26, and the old Food Lion building. Proposed public improvements total $3.5 million with $30 million dollars of projected growth within the expanded TIF. The base year would be 2009. Workshops are being held with Oncor concerning the burying of utilities for approximately 1.25 miles. The City is working with TXDOT concerning the two intersection improvements. The first intersection is located at Glenview and Boulevard 26 and the other at Rufe Snow and Boulevard 26. The City of North Richland Hills has committed $500,000 and the City of Richland Hills has also committed $500,000 for intersection improvements. Proposed public dollars towards landscaping improvements should help to stimulate private improvements along Boulevard 26. Ms. Witt questioned if only landscaping improvements would be made with the $500,000. Mr. Pitstick clarified that it would be more than just landscaping it would also include overlay and restriping of the intersection. Ms. Webb asked if TXDOT had approved the project. Mayor Trevino said it was being reviewed but had not been approved at this time. Mr. Pitstick reviewed the North Richland Hills Baptist Church's plans of improvements of approximately $3 to $4 million dollars in the area which will encourage other investments in the area promoting quality of life. An additional funding of $2.8 million dollars in street improvements is already committed in the City's 2004 bond sale. The Mayor explained the City is spending $400,000 in a close proximity on street improvements in an effort to revitalize the area. Mr. Koonce requested the consideration of the resolution to approve the Project Plan and Finance Plan recommending the expansion to the North Richland Hills City Council. A public hearing would be held on November 24. Following the approval of the TIF No.1 expansion plan by the City the governing bodies would be requested to vote on TIF No. 1 expansion participation agreements in December or January. Mr. Koonce reviewed the Finance Plan with the Board. The sources of the funds would be City of North Richland Hills certificates of obligation. BISD would participate at 0% of the expansion; the City of North Richland Hills would participate at 100% and would request Tarrant County, Tarrant County Hospital District, and Tarrant County College District participate at 100 %. The Estimated Tax Revenues in the Finance Plan show the estimated growth in property values per year in the proposed expanded TIF and the estimated property taxes which would be collected from each entity. The projected payments for the projects would occur in 2009 and 2010 as shown in the Estimated Coverage Calculations of the Finance Plan. Debt payments will start with $615,556 in 2010 and will end in 2018. The lowest cash balance projected at this time is $92,766 in 2014, If everything goes as planned, approximately $500,607 would be available to redistribute back to the entities in 2018. Ms. Witt asked Ms McMillan's question again from the minutes in the last meeting if participants could opt out and others continue. Mr. Koonce answered from a financial basis that would not be possible. In the column under Existing Debt Service she also asked if the money was available to pay off the debt from the 1998 debt proceeds. Mr. Koonce said it was available. She also asked from a development standpoint what type of businesses would be expected to come into the area. The Mayor and Mr. Pitstick suggested it would be service industries, additional housing, and the redevelopment of retail and office space into more viable businesses. Mr. Koonce told the board in the last 4 -5 years the area has grown from $22 million in value to approximately $32 million indicating some natural growth in the area. Mr. Cunningham added that the initial growth would potentially be neighborhood service businesses and possibly some new types of restaurants. The corridor study completed several years ago identified different types of businesses and development including some townhomes around the Glenview and Blvd. 26 area. Ms. Webb asked if residential property and commercial was included in the dollar amount for improvement. Mayor Trevino advised the board all property in the expansion area is planned for commercial development. Councilman Turnage moved to approve the resolution recommending to the City Council of the City of North Richland Hills to approve the expansion of TIF No. 1. Councilman Lewis seconded the motion. Mayor Trevino presented e -mails from Carolyn Sims of Tarrant County and Dr. Darlage of B.I.S.D. in support of the expansion and approval of the resolution. Motion to approve carried 5 -0. 5. ADJOURNMENT Delores Webb moved to adjourn the TIF No. 1 Board meeting and Drenda Witt seconded the motion. Mayor Trevino adjourned the meeting at 4:43 p.m. TIF No. ? Subject: Appointment of Vice -Chair and Secretary . Board Meeting Date: 10/07/2009 Agenda Number: 2009 -01 The Bylaws of Reinvestment Zone Number One state that the terms of office of Vice - Chairman and Secretary shall not exceed two years. Officers appointed at the October 2, 2007 meeting were Dolores Webb to serve as Vice- Chairman and Councilman Lewis to serve as Secretary. Recommendation: To appoint the Vice -Chair and Secretary. TIF No. 1 Subject: Discuss and Aporove TIF No. 1 2009 Annual Report 'Board Meeting Date: 10/07/2009 Agenda Number: 2009 -02 Larry Koonce, Director of Finance City of North Richland Hills will present the attached annual report. The figures for fiscal year ending September 30, 2009 are preliminary estimates and will be updated when finalized. The annual report will be submitted to the State Comptroller before December 31, 2009 and distributed to the Board and taxing entities. In fiscal year 2009, NRH TIF No. 1 received taxes in the amount of $224,455 from property owners. For the year ending September 30, 2009, outstanding principal and interest on the Certificates totaled $457,117. Principal, interest and associated payments totaled $59,467 for fiscal year 2009, and the end of the year cash balance is estimated to be $1,081,374. The TIF Board No. 1 and North Richland Hills City Council approved the expansion of TIF No. 1 in November of 2008. Since that time Tarrant County and Tarrant County Hospital District Boards have approved participation in the expansion at 100 %. Tarrant County College District Board has agreed to participate at 50% in the expansion. Birdville Independent School District is not able to participate in the expansion because of changes in the TIF laws, but has agreed to continue to participate in the original TIF at 100 %. The original finance plan assumed 100% from all entities participating in the expansion. We have one entity participating at 50 %. As such, the TIF Board No. 1 and NRH City Council will need to consider a resolution and ordinance, respectively, amending the finance plan. This will be a separate agenda item on the October 7th board meeting and an agenda item on an upcoming Council meeting. In the meantime, the City of North Richland Hills is proceeding to issue $3.5 million dollars in certificate of obligation debt for the projects in the expansion plan. This process should take from 60 to 90 days. The project plan has not changed. The projects include improvements at the intersections of Rufe Snow Drive and Boulevard 26 and Glenview and Boulevard 26. The project plan also includes the burial of approximately 1.25 miles of above ground utility lines along Boulevard 26. After the presentation of financial status of TIF No. 1, we recommend the Board take action as to the acceptance of the report. City of North Richland Hills Tax Increment Reinvestment Zone No. 1 Report to Board Estimated Year Ended September 30, 2009(unaudited) Amount & Source of Revenue in the Tax Increment Fund FY 2009: Property Tax Revenues $ 224,455 Interest Income $ 11,315 Total Revenues in Fiscal Year 2009 $ 235,770 Amount and Purpose of Expenditures of the Fund FY 2009: Principal, Interest, Issuance & Paying Agent Payments on Certificate Indebtedness $ 59,467 Total Fund Expenditures in Fiscal Year 2009 $ 59,467 Principal & Interest due on outstanding indebtedness as of September 30, 2009: Principal Outstanding $ 390,280 Interest Outstanding $ 66,837 Total Principal & Interest Outstanding 9 -30- 2009 $ 457,117 Captured Appraised Value shared by the Municipality & Other Taxing Entities and total amount of tax increments received : Taxing Unit City of North Richland Hills Birdville I.S.D. Tarrant County Tarrant County Hospital District Tarrant County College This report submitted by Larry Koonce Director of Finance City of North Richland Hills, Texas Tax Tax Revenue Captured 1998 Base Year Taxable Value Appraised Appraised Value 2008 Value 2008 $1,152,929 $9,753,226 $8,600,297 $1,152,929 $9,753,226 $8,600,297 $1,152,929 $9,753,226 $8,600,297 $1,152,929 $9,753,226 $8,600,297 $1,152,929 $9,753,226 $8,600,297 This report submitted by Larry Koonce Director of Finance City of North Richland Hills, Texas Tax Tax Revenue Ratei$100 Received FY FY 2009 2008 $0.570000 $49,021 $1.410000 $121,264 $0.264000 $22,705 $0.227897 $19,600 $0.137960 $11,865 $224,455 K:acctltifs\TlF1 Report to Board Oct 2009.xls TIF No. 9 Subject: Consider a resolution of the Board of Directors Board Meeting Date: 10/07/2009 of Reinvestment Zone Number 1, City of North Richland Hills adopting certain amendments to the financing plan Agenda Number: 2009 -03 for Reinvestment Zone Number 1, City of North Richland Hills, and authorizing and approving other matters incidental and related thereto. The TIF Board No. 1 and North Richland Hills City Council approved the expansion of TIF No. 1 in November of 2008. Since that time Tarrant County and Tarrant County Hospital District Boards have approved participation in the expansion at 100 %. Tarrant County College District has agreed to participate at 50% in the expansion. Birdville Independent School District is not able to participate in the expansion because of changes in the TIF laws, but has agreed to continue to participate in the original TIF at 100 %. The original finance plan assumed 100% from all entities participating in the expansion. We have one entity participating at 50 %. As such, the TIF Board No. 1 and NRH City Council will need to consider a resolution amending the finance plan. If this resolution is approved by the Board at the October 7th board meeting, NRH City Council will consider the resolution at an upcoming Council meeting. Attached is the original finance plan with all entities participating at 100 %, Attached also is the revised plan based on the new participation percentages. The revised plan also has other changes which have been highlighted in yellow on the amended plan. The major changes are summarized as follows: Estimated Tax Revenues in the approved plan were $4,260,314. The amended plan estimate is $3,542,866. The difference is due to the participation level decrease, some entities have lowered their tax rates for fiscal year 2010, and slower growth has been projected. The July 25 Tarrant Appraisal District roll indicates only $146,915 in captured valuation as compared to $3,000,000 estimated in the approved plan. While the total value growth is still estimated at $30,000,000, the growth is projected to be slower. Estimated Debt principal and interest payments in the approved plan were $4,423,806. The amended plan estimate is $4,132,534. The difference is due to a lower expected interest rate on the bonds from 5% to 3.85 %. There has been a favorable improvement in the bond market since last November. Estimated Investment Earnings on Construction Funds have decreased from $69,028 to $28,167 due to a decrease in return on investments. Interest rate estimates have declined from 2% last year to 1 % currently. Estimated Coverage Calculations (cash flows) have changed from $500,607 in the November 2008 plan to $3,103 in the amended plan. We will discuss these changes in detail at the board meeting. Recommendation: Approve Resolution Number 2009 -001. RESOLUTION NO. 2009-001 A RESOLUTION of the Board of Directors of Reinvestment Zone Number 1, City of North Richland Hills adopting certain amendments to the 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 (the "Project Plan ") and a reinvestment zone financing plan (the "Finance Plan ") 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 ") has previously adopted and the City Council of the City has previously approved a first amendment to the Project Plan and a first amendment to the Finance Plan (jointly, the "First Amendments "); and WHEREAS, the Board desires to amend the Finance Plan to (i) decrease the percentage of tax increment to be contributed by the Tarrant County College District from 100% to 50% of the taxes levied and collected against the captured appraised value of the property that was added to the Zone pursuant to the First Amendments {the "Property ") and (ii) adjust the captured appraised value of the Property as a result of the adjusted taxable assessed valuation issued by the Tarrant Appraisal District, and WHEREAS, the Board has prepared a second amendment to the Finance Plan (the "Second Amendment ") which details the amendments to be made to the Finance Plan, and the Board desires to adopt such Second Amendment; now, therefore, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF REINVESTMENT ZONE NUMBER 1, CITY OF NORTH RICHLAND HILLS: SECTION 1. The Second Amendment, attached hereto as Exhibit A and incorporated herein by reference, is 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 Second Amendment. SECTION 3. This Resolution shall take effect upon its adoption. 65326037.1110611340 PASSED, APPROVED AND ADOPTED this the 71h day of October, 2009. ATTEST: Secretary BOARD OF DIRECTORS, REINVESTMENT ZONE NUMBER 1, CITY OF NORTH RICHLAND HILLS Chairman 65326037.1110611340 S -1 EXHIBIT A SECOND AMENDMENT TO FINANCE PLAN 65326037.1110611340 City of North Richland Hills EXPANSION OF RZ NUMBER 1 Estimated Tax Revenues Level of Participation TIF 1 Expansion Finance Plan Amended 10- 07- 09.xls BISD NRH Tarrant County Tarrant Co. Hospital Dist. TCC Existing Expansion Existing Expansion Existing Expansion Existing Expansion Existing Expansion 100% 0% 100% 100% 100% 100% 100% iQ0°fo 100% 50% Tax Rates Fiscal Year 2009 -2010 $ 1.4050 $ $ 0,5700 $ 0.5700 0.2640 $ 0.2640 $ 0.227897 $ 0.227897 $ 0.13767 $ 0.13767 Total Total Estimated Captured Captured BISD NRH NRH County County Hospital Hospita_ TCC TCC Total Total Rea, Fiscal Valuation Valuation RZ BISD Existing Expansion Existing Expansion Existing Expansion Existing Expansion Existing Expansion Total Existing Expansion Property Year Existing RZ Expansion Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes 2009 $ 8,600,297 $ 146,915 $ 121,264 $ $ 4%021 $ - $ 22,705 $ - $ 19,600 $ - $ 11,865 $ - $ 224,455 $ - $ 224,455 2010 $ 8,600,297 $ 2,500,000 $ 120,834 $ $ 49,022 $ 1,241 $ 22,705 $ 388 $ 19,600 $ 335 $ 11,840 $ 101 $ 224,000 $ 2,065 $ 226,065 2011 $ 8,600,297 $ 5,000,000 $ 120,834 $ $ 49,022 $ 14,250 $ 22,705 $ 6,600 $ 19,600 $ 5,697 $ 11,840 $ 1,721 $ 224,000 $ 28,268 $ 252,269 2012 $ 8,600,297 $ 7,500,000 $ 120,834 $ $ 49,022 $ 26,500 $ 22,705 $ 13,200 $ 19,600 $ 11,395 $ 11,840 $ 3,442 $ 224,000 $ 56,537 $ 280,537 2013 $ 8,600,297 $ 10,000,000 $ 120,834 $ $ 49,022 $ 42,750 $ 22,705 $ 19,800 $ 19,600 $ 17,092 $ 11,840 $ 5,163 $ 224,000 $ 84,805 $ 308,805 2014 $ 8,600,297 $ 15,000,000 $ 120,834 $ $ 49,022 $ 57,000 $ 22,705 $ 26,400 $ 19,600 $ 22,790 $ 11,840 $ 6,884 $ 224,000 $ 113,073 $ 337,074 2015 $ 8,600,297 $ 20,000,000 $ 120,834 $ $ 49,022 $ 85,500 $ 22,705 $ 39,600 $ 19,600 $ 34,185 $ 11,840 $ 10,325 $ 224,000 $ 169,610 $ 393,610 2016 $ 8,600,297 $ 25,000,000 $ 120,834 $ $ 49,022 $ 114,000 $ 22,705 $ 52,800 $ 19,600 $ 45,579 $ 11,840 $ 13,767 $ 224,000 $ 226,146 $ 450,147 ' 2017 $ 8,600,297 $ 30,000,000 $ 120,834 $ $ 49;022 $ 142,500 $ 22,705 $ 66,000 $ 19,600 $ 56,974 $ 11,840 $ 17,209 $ 224,000 $ 282,683 $ 506,683 2018 $ 8 „600,297 $ 120,834 $ $ 49,022 $ 171,000 $ 22,705 $ 79,200 $ 19,600 $ 68,369 $ 11,840 $ 20,651 $ 224,000 $ 339,220 $ 563,220 TOTALS $ 1,208,772 $ $ 490,216 $ 656,741 $ 227,,048 $ 303,988 $ 195,998 $ 262,418 $ 118,426 $ 79,261 $ 2,240,459 $ 1,302,407 ; 3,642,868 City of North Richland Hills TIF 1 Expansion Finance Plan Amended 10- 07- 09.xis EXPANSION OF RZ NUMBER 1 Estimated Coverage Calculations Investment Investment Estimated Estimated Estimated Total Existing and Debt Proceeds Earnings on Earnings on_ Annual Estimated Certificate Fiscal Beginning Tax Revenues Tax Revenues Expansion RZ Tax Debt Service for Expansion Payment for Debt Service Construction TIF Cash- Surplus Cumulative Coverage Year Cash Balance Existing TIRZ RZ Expansion Revenues Existing RZ Projects Projects RZ Expansion Funds Balances Coverage Coverage Ratic 3.86% 1.0% 1.0% 2009 $ 905,071 $ 224,455 $ - $ 224,455 $ (59,467) $ 11,315 $ 176,303 $ 1,081,374 2010 $ 1,081,374 $ 224,000 $ 2,065 $ 226,065 $ (57,243) $ 3,500,000 $ (1,300,000) $ (95,074) $ 20,833 $ 72,040 $ 2,366,622 $ 3,447,996 9.19 2011 $ 3,447,996 $ 224,000 $ 28,268 $ 252,269 - $ (60,087) $ (2,200,000) $ (566,280) $ 7,333 $ 22,670 $ (2,544,095) $ 903,902 5.96 2012 $ 903,902 $ 224,000 $ 56,537 $ 28D,537 $ (55,538) $ (549,340) $ 17,202 $ (307,138) $ 596,763 1.99 2013 $ 596,763 $ 224,0D0 $ 84,805 $ 308,805 $ (53,963) $ (532,400) $ 12,560 $ (264,997) $ 331,766 1.57 2014 $ 331,766 $ 224,000 $ 113,073 $ 337,074 $ (52,388) $ (515,460) $ 8,761 $ (222,012) $ 109,754 1.19 2015 $ 109,754 $ 224,000 $ 169,610 $ 393,610 $ (50,700) $ (493,616) $ 7,053 $ (143,653) $ (33,899) 0.94 2016 $ (33,899) $ 224,DDD $ 226,146 $ 450,147 $ (44,000) $ (476,869) $ 5,183 $ (65,539) $ (99,438) 0.81 2017 $ (99,438) $ 224,000 $ 282,683 $ 506,683 $ (42,400) $ (460,121) $ 8,228 $ 12,391 $ (87,047) 0.83 2018 $ (87,047) $ 224,000 $ 339,220 $ 563,220 $ (40,800) $ (443,374) $ 11,104 $ 90,150 $ 3,103 1.01 TOTALS $ 2,240,469 $ 1,302,407 $ 3,642,866 $ 516,685) $ 5,500,000 $ (3,600,000) $ (4,132,534) $ 28,167 $ 176,118 $ 3,103 City of North Richland Hills EXPANSION OF RZ NUMBER 1 Estimated Debt Calculations Debt Structure Level Principal Payments Fiscal Year Issued 2010 Principal Amount $ 3,500,000 Maturity 8 years Interest Rate 3.85% Amended 10- 07-09 Fiscal Year Principal Balance Principal Payment Interest Payment Total Payment 2010 $ 3,500,000 $ 95,074 $ 95,074 2011 $ 3,060,000 $ 440,000 $ 126,280 $ 566,280 2012 $ 2,620,000 $ 440,000 $ 109,340 $ 549,340 2013 $ 2,180,000 $ 440,000 $ 92,400 $ 532,400 2014 $ 1,740,000 $ 440,000 $ 75,460 $ 515,460 2015 $ 1,305,000 $ 435,000 $ 58,616 $ 493,616 2016 $ 870,000 $ 435,000 $ 41,869 $ 476,869 2017 $ 435,000 $ 435,000 $ 25,121 $ 460,121 2018 $ - $ 435,000 $ 8,374 $ 443,374 Totals $ 3,500,000 $ 632, $ 4,132,334 City of North Richland Hills Amended 10 -07 -09 EXPANSION OF RZ NUMBER 1 Estimated Investment Earnings on Construction Funds Issue C.O.s 1210112009 in the amount of : Return on Investments : 1.0 % Construction Construction Fund Earnings on $ 3,500,000 Drawdown Amount Balance Investments Drawdown January $ 144,444 $ 3,355,556 $ 2,796 Drawdown February $ 144,444 $ 3,211,111 $ 2,676 Drawdown March $ 144,444 $ 3,066,667 $ 2,556 Drawdown April $ 144,444 $ 2,922,222 $ 2,435 Drawdown May $ 144,444 $ 2,777,778 $ 2,315 Drawdown June $ 144,444 $ 2,633,333 $ 2,194 Drawdown July $ 144,444 $ 2,488,889 $ 2,074 Drawdown August $ 144,444 $ 2,344,444 $ 1,954 Drawdown September $ 144,444 $ 2,200,000 $ 1,833 Total FY 2010 $ 1,300,000 $ 20,833 Drawdown October $ 244,444 $ 1,955,556 $ 1,630 Drawdown November $ 244,444 $ 1,711,111 $ 1,426 Drawdown December $ 244,444 $ 1,466,667 $ 1,222 Drawdown January $ 244,444 $ 1,222,222 $ 1,019 Drawdown February $ 244,444 $ 977,778 $ 815 Drawdown March $ 244,444 $ 733,333 $ 611 Drawdown April $ 244,444 $ 488,889 $ 407 Drawdown May $ 244,444 $ 244,444 $ 204 Drawdown June $ 244,444 $ (0) $ (0) Total FY 2010 $ 2,200,000 $ 7,333 City of North Richland Hills TIF 1 Expansion Finance Plan Board Approved 11 -06 -08 EXPANSION OF RZ NUMBER 1 Estimated Tax Revenues Level of Participation SISD NRH Tarrant County Tarrant Co. Hospital Dist. TCC Existing Expansion Existing Expansion Existing Expansion Existing Expansion Existing Expansion 100% 0% 100 % 100°/x1 100% 100 %I 100% 100 %1 100% 100 %1 Tax Rates Fiscal Year 2008 - 2009 $ 1.4100 $ $ 0.5700 $ 0.5700 0,2640 $ 0.2640 $ 0,227897 $ 0.227897 $ 0.13796 $ 0.13796 Total Total Estimated Captured Captured BISD NRH NRH County County Hospital Hospital TCC TCC Total Fiscal Valuation Valuation RZ BISD Existing Expansion Existing Expansion Existing Expansion Existing Expansion Existing Expansion Total Existing Expansion Total Real Year Existing RZ Expansion Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Taxes Property Taxes 2009 $ 8,600,297 $ 3,000,000 $ 121,264 $ $ 49,022 $ - $ 22,705 $ - $ 19,600 $ - $ 11,865 $ - $ 224,455 $ - $ 224,455 2010 $ 8,600,297 $ 6,000,000 $ 121,264 $ $ 49,022 $ 17,100 $ 22,705 $ 7,920 $ 19,600 $ 6,837 $ 11,865 $ 4,139 $ 224,455 $ 35,996 $ 260,451 2011 $ 8,600,297 $10,000,000 $ 121,264 $ - $ 49,022 $ 34,200 $ 22,705 $ 15,840 $ 19,600 $ 13,674 $ 11,865 $ 8,278 $ 224,455 $ 71,991 $ 296,447 2012 $ 8,600,297 $15,000,000 $ 121,264 $ $ 49,022 $ 57,000 $ 22,705 $ 26,400 $ 19,600 $ 22,790 $ 11,865 $ 13,796 $ 224,455 $ 119,986 $ 344,441 2013 $ 8,600,297 $20,000,000 $ 121,264 $ $ 49,022 $ 85,500 $ 22,705 $ 39,600 $ 19,600 $ 34,185 $ 11,865 $ 20,694 $ 224,455 $ 179,979 $ 404,434 2014 $ 8,600,297 $25,000,000 $ 121,264 $ $ 49,022 $ 114,000 $ 22,705 $ 52,800 $ 19,600 $ 45,579 $ 11,865 $ 27,592 $ 224,455 $ 239,971 $ 464,427 2015 $ 8,600,297 $29,000,000 $ 121,264 $ $ 49,022 $ 142,500 $ 22,705 $ 66,000 $ 19,600 $ 56,974 $ 11,865 $ 34,490 $ 224,455 $ 299,964 $ 524,420 2016 $ 8,600,297 $30,000,000 $ 121,264 $ $ 49,022 $ 165,300 $ 22,7D5 $ 76,560 $ 19,600 $ 66,090 $ 11,865 $ 40,008 $ 224,455 $ 347,959 $ 572,414 2017 $ 8,600,297 $30,000,000 $ 121,264 $ $ 49,022 $ 171,000 $ 22,705 $ 79,200 $ 19,600 $ 68,369 $ 11,865 $ 41,388 $ 224,455 $ 359,957 $ 584,413 2018 $ 8,600,297 $ 121,264 $ $ 49,022 $ 171,000 $ 22,705 $ 79,200 $ - 19,600 $ 68,369 $ 11,665 $ 41,388 $ 224,455 $ 359,957 $ 584,413 TOTALS $ 1,212,642 $ $ 490,217 $ 957,600 $ 227,048 $ 443,520 $ 195,998 $ 382,867 $ 118,650 $ 231,773 $ 2,244,555 $ 2,015,760 $ 4,260,314 City of North Richland Hills TIF 1 Expansion Finance Plan Board Approved 11 -06 -08 EXPANSION OF RZ NUMBER 1 Estimated Coverage Calculations Investment Investment Estimated Estimated Estimated Total Existing and Debt Proceeds Earnings on Earnings on Annual Estimated Certificate Fiscal Beginning Cash Tax Revenues Tax Revenues Expansion RZ Tax Debt Service for Expansion Payment for Debt Service Construction TIF Cash Surplus Cumulative Coverage Year Balance Existing TIRZ RZ Expansion Revenues Existinq RZ Projects Projects RZ Expansion Funds Balances Coverage Coveraqe Ratio 5,00% 2.0% 2.0% 2009 $ 903,311 $ 224,455 $ - $ 224,455 $ (59,267) $ 3,500,000 $ (1,166,667) $ 18,472 $ 72,895 $ 2,589,889 $ 3,493,200 2010 $ 3,493,200 $ 224,455 $ 35,996 $ 260,451 $ (57,231) $ (2,333,333) $ (615,556) $ 50,556 $ 21,171 $ (2,673,943) $ 819,257 5.69 ' 2011 $ 819,257 $ 224,455 $ 71,991 $ 296,447 $ (60,086) $ (545,500) $ 16,131 $ (293,008) $ 526,249 1.87 2012 $ 526,249 $ 224,455 $ 119,986 $ 344,441 $ (55,538) $ (526,000) $ 12,672 $ (224,424) $ 301,825 1.52 2013 $ 301,825 $ 224,455 $ 179,979 $ 404,434 $ (53,963) $ (506,500) $ 11,005 $ (145,024) $ 156,801 1.28 2014 $ 156,801 $ 224,455 $ 239,971 $ 464,427 ' $ (52,388) $ (487,000) $ 10,925 $ (64,035) $ 92,766 1.17 2015 $ 92,766 $ 224,455 $ 299,964 $ 524,420 $ (50,700) $ (467,500) $ 12,468 $ 18,688 $ 111,453 1.22 2016 $ 111,453 $ 224,455 $ 347,959 $ 572,414 $ (44,000) $ (446,000) $ 11,464 $ 91,878 $ 203,332 1.41 2017 $ 203,332 $ 224,455 $ 359,957 $ 584,413 $ (42,400) $ (423,500) $ 18,125 $ 136,638 $ 339,969 1,73 2018 $ 339,969 $ 224,455 $ 359,957 $ 584,413 $ (40,800) $ (404,250) $ 21,275 $ 160,637 $ 500,607 2.12 TOTALS $ 2,244,555 $ 2,015,760 $ 4,260,314 $ (516,372) $ 3,500,000 S (3,500,000) $ (4,423,806) $ 69,028 $ 208,131 $ 500,607 City of North Richland Hills Board Approved 11 -6 -08 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 City of North Richland Hills Board Approved 11 -6 -08 EXPANSION OF RZ NUMBER 1 Estimated Investment Earnings on Construction Funds Issue C.O.s 411512009 in the amount of : Return on Investments 2 0% Construction . Construction Fund m Earnings on $ 3,500,000 Drawdown Amount Balance Investments Drawdown June $ 291,667 $ 3,20$,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 T1F No. 1 Subject: Update on TIF No. 1 Expansion Protects Board Meeting Date: 10/07/2009 Agenda Number: 2009 -04 Proiect Plan • $3.5 Million Total • Bury Utilities ($3 million) - 1.25 miles - NRH side of Boulevard 26 south of Loop 820 - $3 Million, $454 per linear Foot • 2 Intersection Improvements ($500,000) - Glenview & Boulevard 26 - Rufe Snow & Boulevard 26 Burvinq Utilities on the NRH side of Boulevard 26 Staff continues to work with Oncor to coordinate the construction of burying utilities from Ken Michael Court (just south of old North Hills Mall property) approximately 6,600 linear feet to just south of the Rufe Snow intersection. Additional easements will be required to locate new transformers and switchgears. Existing businesses utility services will also be relocated to accommodate underground services. Based on staff's current understanding of this major utility effort staff would recommend employing an outside consultant or contractor to verify specific costs for burying utilities. Staff anticipates either a formal agreement with Oncor for making the necessary utility improvements or the City of North Richland Hills will coordinate with Oncor for bidding the improvements under a city contract with a private construction company. Following is a general breakdown of costs. Oncor has not previously given a formal written estimate on this large section because of unknown costs and tentative funding until this time. The following costs are based on a general map markup for anticipated utility improvements. 5,800 linear feet of bore @$2501foot = $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 Conversion of light poles Conversion of existing businesses to underground = *$ 955,000 ( *estimate - will need to employ outside electrical consultant to verify specific costs) TOTAL ESTIMATE $3,000,000 TIF No. Intersection Imorovements The cities of North Richland Hills and Richland Hills are committed to creating an image for Boulevard 26 with the introduction of intersection improvements at the Glenview and Boulevard 2.6 intersection and at the Rufe Snow and Boulevard 26 intersections. New intersection improvements will include a new asphalt overlay with new signals. Also included are new landscaping, pedestrian signage, lighting and new crosswalks. It is the goal of the Boulevard 26 intersection improvements to set the tone for future private development throughout the Boulevard 26 corridor. Currently staff is proceeding to coordinate with TXDOT for removing SH 26 from Loop 620 to SH 10 from the state highway system. This will allow the cities to make specific image improvements to the Boulevard 26 corridor without formal approval from TXDOT. It is anticipated that by the first quarter of 2010 the Boulevard 26 corridor will be removed from the TXDOT highway system and we can proceed with constructing the intersection improvements. John Pitstick, City of North Richland Hills Director of Planning and Development, will present this item to the Board. This item is for information purposes only. No action from the board is required.