Loading...
HomeMy WebLinkAboutTIF1 2007-10-02 Minutes 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 TUESDAY, OCTOBER 2, 2007 - 4:00 P.M. Present: Oscar Trevino, Chairman Mayor Scott Turnage Council Member John Lewis Council Member Dr. Larry Darlage Tarrant County College Carolyn Sims Precinct Administrator for Commissioner Gary Fickes, Northeast SubCourthouse, Precinct #3 Drenda Witt Tarrant County Hospital District Dolores Webb Birdville I.S.D. Others Present: Larry J. Cunningham City Manager Jim Starr Interim Assistant City Manager Bo Bass Assistant City Manager Karen Bostic Managing Director of Administrative/Fiscal Services Larry Koonce Director of Finance Chris Amarante Construction Manager Vickie Loftice Director of Parks and Recreation Elizabeth Reining Assistant to the City Manager Thad Chambers Director of Economic Development Mary Peters Public Information Officer Dr. Quentin Burnett Birdville I.S.D. Lisa McMillan Tarrant County Commissioner’s Court Scott Herndon Tarrant County Hospital District David Medanich First Southwest Company Phyllis O’Neal Finance Assistant Absent: Tim Welch Council Member David Whitson Council Member 1. CALL TO ORDER Mayor Trevino called the meeting to order at 4:00 p.m. 2. APPROVAL OF June 21, 2005 BOARD MINUTES Drenda Witt moved to approve the minutes with the correction of the spelling of Glen Whitley’s name. Councilman Lewis seconded the motion. Motion to approve carried 7-0. 3. APPOINTMENT OF VICE-CHAIRMAN AND SECRETARY Councilman Lewis nominated Dolores Webb to serve as Vice-Chairman. Dr. Darlage seconded the motion. Motion to approve carried 7-0. Dolores Webb nominated Councilman Lewis to serve as Secretary. Dr. Darlage seconded the motion. Motion to approve carried 7-0. 4. DISCUSS 2007 ANNUAL REPORT Director of Finance Larry Koonce provided an overview of TIF No. 1 Executive Summary. Mr. Koonce reviewed the history of TIF No. 1. $850,000 of certificates of obligation was sold out of the TIF to address the drainage. The original debt was created with a 20 year maturity. Mr. Koonce advised board if current values held steady and property owners pay taxes on the TIF No. 1 properties the bonds could be paid off early in the year 2008. In fiscal year 2007, taxes were received from the different entities in the amount of $216,838. The outstanding principal and interest at year end in the amount of $577,745 with a cash balance of $728,000 makes it possible to be able to pay off the debt. There is approximately 7.8 million dollars in improvements on the property since the time the TIF was created with approximately $9 million in total value. He also indicated that over 260,000 square feet of the 300,000 square foot business center is currently being leased. Tenants of the center include ATI Career Training Center, Silver Leaf Resorts, Walter Mortgage Company, ECAP (Training for Teacher Certification), Whitley Academy Charter School and Crossroads Church. The number of jobs created is 737. Councilman Turnage moved to accept the 2007 Annual Report. Ms. Webb seconded the motion. Motion to approve carried 7-0. 5. DISCUSS THE FEASIBILITY OF DEFEASANCE (PAYOFF) OF OUTSTANDING DEBT AND IMPACT ON TIF NO. 1 DISTRICT Director of Finance Larry Koonce presented the Board with the first option of defeasance that would be on February 15, 2008. The approximate cash balance in February will be $740,000 with payoff at $505,000, leaving approximately $235,000 to be distributed back to the participating entities. Interest savings will be from $90,000 to $100,000 if the bonds are defeased. Mr. Koonce introduced David Medanich of First Southwest to discuss the process to defease the TIF debt. Mr. Medanich advised the Board this was a unique TIF with the participation of the school district. The TIF could be defeased at any time starting February 15, 2008 until 2018. Reasons why you would not want to defease would be if the Board had other projects they would like to consider. The TIF is currently earning about 5% interest and debt would be paid off at 4%. Mr. Medanich advised the 1998 obligations are callable now and an escrow would be created for the 2005 obligations to exactly offset the payment of the bonds. Once you effect that, the TIF is defeased. The debt legally comes off the books and the entity goes away. Once the Board gives direction to defease the bonds, First Southwest will buy the securities to create the escrow and then an accounting firm will give a report to say the debt has been legally defeased. Mayor Trevino suggested board members go back to their organizations to get direction from them. Before deciding on defeasance of the debt, expanding the TIF, or creating a new TIF, Mayor Trevino would like to review the Boulevard 26 clean-up further up towards TCC. Ms. Webb questioned the defined area of the zone and would like to know what additional areas would be included if the Board chose to expand the zone. Mr. Medanich advised the Board if the zone was expanded then new projects could be examined and revenues could be collected from all the entities with the exception of the school district in the expanded area. Revenues could still be collected from the school district in the existing zone and used in the expanded zone. Mr. Koonce advised the Board that interest earnings alone were not the only aspect to be considered. Taxes would still need to be paid from the entities into the zone as long as the TIF remained open. Mr. Cunningham advised the Board that the City had talked with Representative Hancock last year about the practicality of trying to amend the TIF law to allow two different jurisdictions such as City of Richland Hills and North Richland Hills with joint interest in redeveloping Boulevard 26 to participate in the same zone. The current legislation does not allow two different city jurisdictions to enter into a TIF. He questioned if it would be best to dissolve the current TIF and start a new TIF if legislation could be amended to incorporate the City of Richland Hills. Staff would like an additional four to six weeks to review the practicality of this and also to identify additional projects the Board could consider. Mayor Trevino suggested the mall area should be considered in expanding the TIF. Ms. Sims asked what would be considered if an additional 4-6 weeks was allowed. Mayor Trevino advised staff will review the feasibility of continuing the zone. Mr. Cunningham suggested future public improvements to be considered could be the intersection improvements, the City of Richland Hills public facility on the corridor if this is a project they are considering, and additional street improvements. Mr. Cunningham advised when the Board meets again recommendations will be made whether to proceed with defeasance or expanding the district. Ms. Webb advised that the school board knew of no projects that would fit into the continuation of the TIF or the expansion of the TIF. Ms. Witt recognized Lisa McMillan of Tarrant County. Ms. McMillan asked if an entity chooses to opt out and debt is paid off could the other participants continue with the expanded district? Mr. Medanich advised he would look into the question. Mayor Trevino directed the Board to allow staff six weeks to look into the feasibility of defeasance or the expansion of the TIF. Ms. Webb moved for the Board to meet again in four to six weeks after staff had time to explore the options. Ms. Sims seconded the motion. Motion to approve carried 7-0. 6. ADJOURNMENT Mayor Trevino adjourned the meeting at 4:24 p.m.