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HomeMy WebLinkAboutTIF2 2009-10-13 AgendasREINVESTMENT ZONE NUMBER 2, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING CITY HALL PRE-COUNCIL ROOM 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TX 76180 TUESDAY, OCTOBER 13, 2009 5:00 P.M. AGENDA 1. Call to Order 2. Approval of November 6, 2008 Board Minutes 3. Appointment of Vice-Chair and Secretary (TIF #2 2009-01) 4. Discuss and Approve TIF No. 2 2009 Annual Report (TIF #2 2009-02). 5. Vickie Loftice, Director of Parks and Recreation, City of North Richland Hills, will give an overview/status report on the recreation center project. No Board action is required (TIF #2 2009-03). 6. Larry Koonce, Director of Finance, will give an update of when funds will be available for the Tarrant County College District Conference Center Project. No Board action is required (TIF #2 2009-04). 7. Adjournment Posted this the 8t" day of October, 2009, Time: // ~' /5 ~'. n~c . Phyllis O'Neal Finance Assistant REINVESTMENT ZONE NUMBER 2, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING CITY HALL PRE-COUNCIL ROOM 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TX 761$0 TUESDAY, OCTOBER 13, 2009 5:00 P.M. AGENDA 1. Call to Order 2. Approval of November 6, 2008 Board Minutes 3. Appointment of Vice-Chair and Secretary (TIF #2 2009-01) 4. Discuss and Approve TIF No. 2 2009 Annual Report (TIF #2 2009-02). 5. Vickie Loftice, Director of Parks and Recreation, City of North Richland Hills, will give an overview/status report on the recreation center project. No Board action is required (TIF #2 2009-03). 6. Larry Koonce, Director of Finance, will give an update of when funds will be available for the Tarrant County College District Conference Center Project. No Board action is required (TIF #2 2009-04). 7. 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 THURSDAY, NOVEMBER 6, 2008 - 5:00 P.M. Present: Oscar Trevino, Chairman Mayor Suzy Compton Mayor Pro Tem Scott Turnage Council Member John Lewis Council Member Drenda Witt Tarrant County Hospital District Others Present: Larry J. Cunningham City Manager Jared Miller Assistant City Manager Jimmy Perdue Assistant City Manager Karen Bostic Assistant City Manager Larry Koonce Director of Finance John Pitstick Director of Planning & Development Chris Amarante Construction Manager Vickie Loftice Director of Parks and Recreation Elizabeth Reining Assistant to the City Manager Craig Hulse Director of Economic Development Mary Peters Public Information Officer Lisa McMillan Tarrant County Commissioner's Court Scott Herndon Tarrant County Hospital District David Medanich First Southwest Company Absent: 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 5:00 p.m. 2. APPROVAL OF OCTOBER 2, 2007 BOARD MINUTES Councilman Lewis moved to approve the minutes. Drenda Witt seconded the motion with the correction for item number 4 changing Dolores Webb to Drenda Witt as the Board member seconding the motion. Motion to approve carried 5-0. 3. DISCUSS 2008 ANNUAL REPORT Finance Director, Larry Koonce provided an overview of TIF No. 1 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. Cash balances including tax collections, interest earnings and certificate of obligation proceeds as of September 30, 2008 are approximately $9.8 million. The captured appraised value was $184,519,875 for the Tarrant County entities for fiscal year 2008. The library project has been completed for $10.2 million with the exception of a few small items. Certificates of deposit in the amount of $2,000,000 were issued for the design of the recreation center project which is the second project in this plan. $1,100,000 of 4b sales #ax has been dedicated toward the recreation center project and the next project which will be the TCC conference center to be started in the next three to five years. Mr. Koonce brought to the attention of the Board some of the reasons property tax collections have come slower and have affected the growth of the TIF. Mayor Trevino asked Mr. Koonce to discuss the delay in the design and construction of the library, and the delay of the design and construction of the recreation center. Mr. Koonce said that both the library and recreation center were anticipated to be completed within the first five years of the plan but were postponed until there were tax revenues to support the debt service. The reasons for the delay are outlined in the Executive Summary. Councilman Lewis moved to accept the 2008 Annual Report. Drenda Witt seconded the motion. Motion to approve carried 5-0. 4. OVERVIEW/STATUS REPORT OF THE TIF NO. 2 RECREATION CENTER PROJECT Vickie Loftice, Director of Parks and Recreation presented the overview/status report of the TIF No. 2 Recreation Center project. She stated that the RFQ was issued for the engineering and design and approximately 15 responses were received from firms interested in the project. Proposals were reviewed by a committee and Brinkley Sargent Architect, a world class firm in Dallas, Texas, was chosen. Over the past few months the City has been working with the developer to resolve some parking and infrastructure issues that exist. It is important that there will be ample parking and it is convenient to the patrons because of the maintenance and operational casts. The need for a recreation center was first identified in the 1991 Park System Master Plan and was expressed again in 2000 and 2007 by our citizens. The center will be approximately 100,000 square feet with a budget far the development and construction cost of $21,900,000. Of that amount, $1,100,000 will be funded out of the Parks'/ Sales Tax and the remaining amount funded from the TIF. Once the project is started after some of the situations are resolved it is expected to take 2'/z to 3 years for public input, engineering and design, construction documents, and then construction. 5. ADJOURNMENT Drenda Witt moved to adjourn the TIF No. 2 Board meeting and Councilman Turnage seconded the motion. Mayor Trevino adjourned the meeting at 5:09 p.m. ~ rr nro. Subject: Appointment of Vice-Chair and Secretary Board Meeting Date: 10/13/2009 Agenda Number: 2009-01 The Bylaws of Reinvestment Zone Number 2 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 Drenda Witt to serve as Vice-Chairman and Dr. Larry Darlage to serve as Secretary. Recommendation: To appoint the Vice-Chair and Secretary. r rr rvo. Subject: Discuss and Approve TIF No. 2 2009 Annual Report Board Meeting Date: 10!13/2009 Agenda Number: 2009-02 Larry Koonce, Director of Finance City of North Richland Hills will present the attached executive summary and 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. 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 2009 were $2,649,144 compared to the original plan estimate of $4,042,518. Taxes collected since inception total $11,092,893 compared to $18,851,022 estimated in the original plan. Cash balances including fax collections, interest earnings and certificate of obligation proceeds as of September 30, 2009 are approximately $13 million. After the presentation of financial status of TIF No. 2, we recommend the Board fake action as to the acceptance of the report. INFORMAL REPORT TO BOARD OF DIRECTORS \ '~~ , Date: October 13, 2009 - f Subject: Tax Increment Reinvestment Zone No. 2 V Executive Summary for TIF Board Meeting, October 13, 2009 Attached for your information is "Tax Increment Reinvestment Zone No. 2, Preliminary Financial Estimates, For the Year Ended September 30, 2009". 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 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 recreation center project in compliance with the TIF 2 finance plan. The recreation center, which will be located within the TIF #2 boundaries and adjacent to Home Town NRH, is currently under design. Brinkley Sargent Architects are finalizing the site plan and schematic building blocks for review with City Council on October 26. In March 2009, the city purchased 10 acres of land immediately north of the library, south of Bud Jenson Drive and east of Walker Elementary School for the recreation center site. Funding for the property was provided through city gas well revenue. The captured appraised value in 2008 (fiscal year 2009) was $222,126,892 for the City of NRH and $241,012,859 for Tarrant County. The differences are the exemptions granted by the faxing jurisdictions. The District received $2,649,144 from all taxing jurisdictions in fiscal year 2009 compared to the original plan estimate of $4,042,518. Taxes collected since inception total $11,092,893 compared to $18,851,022 estimated in the original plan. Cash balances including tax collections, interest earnings and certificate of obligation proceeds as of September 30, 2009 are approximately $13 million. ISSUED BY THE CITY MANAGBR NORTH RICHLAND HELLS, 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: 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 2009 Ciiy of North Richland Hills Tax Increment Reinvestment Zone No. Z Report to the Board Estimated Year Ended September 30, 2009 (unaudited) Amount & Source of Revenue in the Tax Increment Fund FY 2009: Property Tax Revenues Collected $ 2,649,144 Interest Income $ 144,859 Proceeds from Parks Development corporation 48 Sales Tax for Recreation Center Project $ 1,100,000 Total Revenues in Fiscal Year 2009 $ 3,894,003 Amount and Purpose of Expenditures of the Fund FY 2009: Principal, Interest, Issuance ~ Paying Agent Payments on Certificate Indebtedness $ 925,534 Recreation Center Project Expenditures $ - Total Fund Expenditures in Fiscal Year 2009 $ 925,534 Principal & Interest due on outstanding indebtedness as of September 30, 2009: Principal Outstanding Interest Outstanding $ 10,485,000 $ 3,985,033 Total Principal & Interest Outstanding 9-30-2009 $ 14,470,033 Captured Appraised Value shared by the Municipality & Other Taxing Entities and total amount of tax increments received Captured Tax 1999 Base Year Taxable Value Appraised Value Rate!$100 Property Tax Taxing unit Appraised Value 2008 2008 FY 2009 Revenue FY 2009 City of North Richland Hills $40,577,462 $262,704,354 $222,126,892 $0.570000 $1,266,123 Tarrant County $40,577,462 $281,590,321 $241,012,859 $0.284000 $636,274 Tarrant County Hospital District $40,577,462 $281,590,321 $241,012,859 $0,227897 $549,261 Tarrant County College $40,577,462 $281,625,321 $241,047,859 $0.137960 $332,550 $2,784,208 Total billings outstanding $ (135,064) Taxes Collected FY 2009 $2,649,144 This report submitted by Larry Koonce Director of Finance City of North Richland Hills, Texas K:acctltifslTlF2 Annual Report to Board Oct 2009.xis r ~r roo. z Subject: Overview/Status Report on the Recreation Center Board Meeting Date: 10/13/09 Project Agenda Number; 2009-03 The recreation center, which will be located within the TIF #2 boundaries and adjacent to Home Town NRH, is currently under design. Brinkley Sargent Architects are finalizing the site plan and schematic building blocks for review with City Council on October 26. In March 2009, the city purchased 10 acres of land immediately north of the library, south of Bud Jenson Drive and east of Walker Elementary Schoo! for the recreation center site. Funding for the property was provided through city gas well revenue. The site will provide connectivity to the Library, Walker Elementary School and the future Performing Arts Center creating a civic core and a dynamic sense of place that will attract residents and visitors alike. The site will adequately provide space for the facility, on-site parking, open green space and room far future expansion. The recommended programmatic elements, which guide decisions on the types of facility amenities and interior spaces, are a result of public input and stakeholder meetings. In May 2009, two general public meetings were held along with 14 stakeholder meetings. Stakeholder meetings included the business community, educational institutions, current recreation center users, mom's groups, fitness instructors, seniors, city departments, youth groups and homeowner associations. The public input received verifies much of the original programmatic elements as recommended in the Leland Study, the Town Center Recreation Center Executive Summary, TIF #2 Recommendations and public input received during the initial planning stages between 1998 and 2000. The top requested amenities in order are: Indoor Aquatics, Cardio/UVeights, Walking Track, Youth Programs, Aerobics, Gymnasium, Meeting Space, Racquetball and Senior Space. While senior services were not originally included in the plans for the recreation center, City Council will consider the additian of a senior facility component at the October 26 City Council meeting. The city's two existing senior centers are older facilities that were repurposed from previous uses. By including a modern senior center with the new recreation center, seniors will have access to all the amenities within the recreation center. The 10-acre site will accommodate the additional space necessary for senior services and if approved, funding will be provided through the Park and Recreation Facilities Development Corporation 4B Sales Tax, To gauge interest for transferring senior services from the existing two facilities into one modern facility, a Senior Services Committee was established and three Senior Pubic input meetings were held with 277 people in attendance. The result was positive with 95% supporting the addition of senior services. While the exact size of the senior facility component has not yet been determined, it is anticipated that it will approximately 8,000 square feet. Schematic Design will continue through November 2009 and Design Development will be completed in April 2010. Following completion of the construction documents, faciiity constructian will begin in September/October 2010 with the facility substantially complete by the end of December 2011. No board action is required. r rr- rvo. z Subject: .Update on the Tarrant County College District Board Meeting Date: 10/13/09 Conference Center Praject Agenda Number: 2009-04 The following is an excerpt from the T!F 2 Finance plan in 2000: Conference Center For several years, Tarrant County College officials have been planning a multi-purpose facility designed to nat only meet the needs of students in the fine arts, sciences and management -but likewise to use and make available to outside groups for short-term conferences and seminars. The Conference Center will include the following: • Auditorium • Exhibit Hall • Training Roams • Tiered Meeting Room • Computer Demonstration Room • Planetarium • Conference Rooms • Catering Service Area • Administrative Office • Utility/Storage Areas • Parking • Marquee • Landscaping/Garden In addition to hosting "Fine Arts Performances and concerts. Town hall meetings and conference general sessions", TCC afficials also foresee this facility serving as an "InfoMart West" -with computer hardware and software vendors renting space for displace and use of their products and as a workforce development, teaching and training facility. The participation agreement calls far the college to build and operate the Conference Center. The TIRZ will reimburse the College District debt service for the project. The plan estimates the start of the project in fiscal year 2005. The reimbursement is projected over twenty years beginning in fiscal year 2006. Such a facility is expected to cost: Site improvements $1,800,000 (parking, signage, landscaping) Facility construction costs 6,333,279 Contingency, Fixtures & Furniture inflation Cost of Debt Issuance 80.000 Total Project Cost $8,213,279 City of North Richland Hills staff has performed a cash flow analysis to determine when the Tarrant County College Conference Center project may commence. Based on existing cash balances, future sources of TIF funds and projected expenditures, it is determined that this project may begin in fiscal year 2010. The City of North Richland Hills will coordinate with TCC to provide the TIF funds as needed for their project. No board action is required.