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HomeMy WebLinkAboutTIF1 1998-10-20 MinutesREINVESTMENT ZONE NUMBER 1, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING OCTOBER 20, 1998 MINUTES Attendance: Acting Chairman Charles Scoma, Mayor, City of North Richland Hills Dr. Larry Darlage, President, Tarrant County Junior College Northeast Campus Cheryl Lyman, Councilwoman, City of North Richland Hills Frank Metts, Councilman, City of North Richland Hills Dr. Matt Milano, Councilman, City of North Richland Hills Lyle Welch, Councilman, City of North Richland Hills Jane Sanford, Precinct 3 Administrator, Tarrant County Dolores Webb, Trustee, Birdville Independent School District Drenda Witt, Director of Public Relations, Tarrant County Hospital District Staff/Guests: Larry Cunningham, City Manager, City of North Richland Hills David Brewer, Associate Superintendent, Finance, Birdville ISD David Medanich, Financial Advisor, First Southwest Company Larry Koonce, Director of Finance, City of North Richland Hills Marty Wieder, Director of Economic Development, City of North Richland Hills North Richland Hills Mayor Charles Scoma called the meeting to order at 11:42 p.m. and asked members to introduce themselves. 2. North Richland Hills City Manager Larry Cunningham presented an overview of the draft Bylaws, pointing out that the Bylaws must also go to the NRH City Council for approval since North Richland Hills is ultimately responsible for the bonds to be funded by the TIF. Dolores Webb asked whether the last paragraph of Article IV, Section 2 stipulating that the City Council could amend the Bylaws at any time was directly from State law. Marty Wieder noted that the proposed wording was mirrored after two similar agreements prepared by other North Texas municipalities. Larry Cunningham confirmed that any changes to the Bylaws would come to the Board first. Upon a motion by Ms. Webb and second by Matt Milano, Board members unanimously voted to recommend City Council approval. 2 3. Larry Koonce reviewed the Preliminar~r Financing Plan, explaining how the base value and any additional personal property values would not be included in the TIRZ fund. He also noted that the Zone would have not taxing powers, but that each entity would generate and contribute the tax increment into the fund. Mr. Koonce distributed a chart projecting fund revenues-with an estimated payoff in 10 years. He noted that the bonds can be paid off anytime after 2008. Any surplus would be rebated back to the participating entities, but not until the bonds are retired and the zone is eliminated. David Medanich confirmed that the law would allow the Board to disassemble the Zone upon payoff of bonds. Mr. Scoma pointed out that the revenue estimates are very conservative, and therefore the bonds may can be retired even earlier. He asked what would happen with the excess. Mr. Medanich noted that the Board could create an escrow and do a defeasance. He will check with Ed Esquivel of Fulbright Jaworski about the details of such an action to disassemble the zone. Dr. Milano asked whether BISD's situation with the State would cause the Board any problems, and members discussed the possibilities. Mr. Koonce and Mr. Medanich agreed that it is likely this and other TIFs will be grandfathered if the law is changed to prohibit school district participation. Mr. Cunningham reminded members that in the worst case, the bonds could be paid off in 20 years. Nevertheless, City staff believe it can be paid in 10 years and possibly as soon as 8. Mr. Scoma and Ms. Webb pointed out that the City and BISD have spoken with the Governor and State Secretary of Education, and they don't expect this issue to be a problem. Upon a motion by Cheryl Lyman and a second by Ms. Webb, Board members unanimously approved the Preliminary Financial Plan and recommended its approval by the NRH City Council. 4. Mr. Wieder presented the Preliminary Project Plan for Board consideration. He pointed out that much of the 42-acre site is in the FEMA flood way, which would limit Richland Business Centre's redevelopment-and any potential new development. The City's original $531,000 bond project would remove some of this water, but would be insufficient. City staff and representatives of Today Richland Center, LP agreed that the north channel option proposed by DiScuillo & Terry Consulting Engineers would be most effective-and least costly. With the subtraction of the City's $531,000, it would leave the TIRZ District with $1.34 million in costs. In terms of non-TIF project investment, Mr. Wieder reported that Richland Business Centre developers expect to spend a minimum of $5.65 million-which may be increased again later as the project develops. Mr. Scoma asked to see elevations of the planned project, which Mr. Wieder displayed. Mr. Scoma pointed out how the value of personal property may be substantially higher if much of the property does develop into office uses. Mr. Wieder noted that leasing agents believe the ratio of parking and presence of adjacent fiber optic lines will support such leases. Upon motion by Frank Metts and second by Lyle Welch, Board members unanimously approved the Preliminary Project Plan and recommended its approval by the NRH City Council. 5. Mr. Wieder discussed the Draft Agreement with the Birdville Independent School District to Participate in the Zone and the remaining steps necessary for zone creation. He referred Board members to the paragraph in Section I, Item A, which BISD provided to the City for inclusion in the Agreement. The paragraph addresses the need to allow BISD the flexibility to adjust its level of funding if revenues are ever counted against BISD's State funding formula. He further pointed out the second paragraph in the same section providing for BISD to document and report any such calculations to the TIRZ Board if it ever was necessary to adjust Birdville's calculations. Upon a motion by Ms. Webb and second by Ms. Lyman, Board members unanimously approved the Draft Agreement with BISD-and recommended its approval by the NRH City Council. Mr. Wieder distributed a schedule for the remaining steps for TIF Board implementation. Following some discussion on the need to adopt similar agreements with the County taxing entities, Mr. Wieder agreed to draft and submit similar agreements to each of their representatives for consideration before the Board meets again in December. Board members later agreed to schedule the December meeting for the 16th rather than 17th, as previously proposed. Since Mr. Wieder had reviewed the status of drainage project implementation and the Richland Business Centre Richland Plaza) renovations in earlier discussions, Mr. Scoma thanked all five entities for their participation, noting how the project will benefit every entity's funding. Having no further business, he adjourned the meeting at 12:40 p.m.