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
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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.