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HomeMy WebLinkAboutTIF1 2014-04-28 AgendasREINVESTMENT ZONE NUMBER 1, CITY OF NORTH RICHLAND HILLS BOARD OF DIRECTORS MEETING NORTH RICHLAND HILLS CITY COUNCIL WORKROOM 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TX 76180 MONDAY, APRIL 28, 2014 6:00 P.M. AGENDA 1. Call to Order 2. Approval of April 22, 2013 Board Minutes 3. Discuss and Approve TIF No. 1 and TIF No. 1A 2013 Annual Reports 4. Update on TIF No. 1A Expansion Projects. This is an information item only. No Board action is required. 5. Adjournment MINUTES OF THE TIF BOARD MEETING FOR REINVESTMENT ZONE #1 OF THE CITY OF NORTH RICHLAND HILLS, TEXAS BOARD OF DIRECTORS MEETING – COUNCIL WORKROOM AT CITY HALL MONDAY, APRIL 22, 2013 - 4:00 P.M. Present: Oscar Trevino, Chairman Mayor John Lewis Council Member Tim Welch Council Member David Whitson Council Member Scott Turnage Council Member Dolores Webb Birdville I.S.D. Carolyn Sims Precinct Administrator for Commissioner Gary Fickes, Northeast SubCourthouse, Precinct #3 Absent: Scott Rule Tarrant County Hospital District Dr. Larry Darlage Tarrant County College Other Staff Present: Mark Hindman City Manager Karen Bostic Assistant City Manager Jared Miller Assistant City Manager Jimmy Perdue Director of Public Safety Mike Curtis Managing Director Vickie Loftice Managing Director Larry Koonce Director of Finance John Pitstick Director of Planning & Development Craig Hulse Director of Economic Development Kristin James Assistant to City Manager 1. CALL TO ORDER Mayor Trevino called the meeting to order at 4:02 p.m. 2. APPROVAL OF October 13, 2009 BOARD MINUTES Dolores Webb moved to approve the minutes. David Whitson seconded the motion. Motion to approve carried 7-0. 3. APPOINTMENT OF VICE-CHAIR AND SECRETARY David Whitson nominated Dolores Webb to serve as Vice Chairman. Scott Turnage seconded the motion. Motion to approve carried 7-0. Tim Welch nominated Tito Rodriquez to serve as Secretary. Scott Turnage seconded the motion. Motion to approve carried 7-0. 4. DISCUSS AND APPROVE TIF NO. 1 AND TIF NO. 1A 2012 ANNUAL REPORT Larry Koonce, Director of Finance, provided an overview of the TIF No. 1 and TIF No. 1A Annual Report. Taxes in the amount of $249,114 were received from property owners in fiscal year 2012. Outstanding principal and interest on the Certificates totaled $284,251. Principal, interest and associated payments totaled $57,274 for fiscal year 2012, and the end of the year cash balance is estimated at $1,752,010. Property values as of February 2013 were $13,429,571, a growth of about $12 million. Original estimates were $5.4 million in growth. Since 1998 the TIF has grown $13.4 million. In 2008 the TIF1A expansion was estimated a growth of $3 million per year but there has actually been a loss of nearly $12 million. Each one of the taxing entities approved their agreement to participate in the expansion (TIF No. 1A). Since TIF No. 1 and 1A are combined there will be enough money to pay off existing debt. Another $2.5 million in additional debt can be issued to finish off the existing TIF No. 1A expansion projects. Carolyn Sims arrived at 4:06 p.m. Mayor Trevino stated with approximately five years left on the TIF the new Municipal Complex and new middle school should help spur development along the corridor and help to recoup some of the $12 million loss in property value in TIF No. 1A. Councilman Turnage moved to approve TIF No. 1 and TIF No. 1A 2012 Annual Report. Councilman Whitson seconded the motion. Motion to approve carried 7-0. 5. Update on TIF No. 1 Expansion Projects Director of Planning & Development, John Pitstick, updated the Board on the projects. Mr. Pitstick presented an area map outlining the TIF expansion area in relation to BISD administrative offices, the JPS Clinic, Tarrant County Sub-courthouse, Tarrant County College campus and the new City Hall. The key change in the 2009 plan of $3.5 million to the current plan is to reduce it to $3 million in completing the two intersections and burying the utilities between the two intersections. As stated in the annual reports, when the recession hit some of the value was lost in the TIF. It is the opinion of Staff the burial of the Quik Trip utilities will be an incentive to other development to bury utilities extending all the way down Boulevard 26. The plan also includes all new street lights and connecting all of the businesses with underground utilities for approximately .8 miles. Funds are also in the budget to replace existing signs with new monument signs. There will still be improvements made with new crosswalks and signal lights at the intersections of Rufe Snow and Glenview. Mayor Trevino requested an update on the progress. Mike Curtis, Managing Director of Development Services, advised the Board the project was moving forward although it is not visible. Progress is being made with TXDOT and is in the review process with engineering issues being worked out. The City is still following the branding but it is being conformed to TXDOT criteria’s. Signs will be replaced with the approved color of green on the North Richland Hills side and the City will be getting with Richland Hills for the timing of placement. Ms. Webb asked about Richland Hills participation in the project concerning signage and the burial of utilities. Mr. Curtis stated there is an interlocal resolution where both the Cities had agreed to participate in the project. He advised a few of the property owners do not agree a new sign and being connected with underground utilities is an even trade. Greg VanNieuwenhuize, Engineer, and Craig Hulse, Director of Economic Development, are coordinating the easements. Mr. Hulse stated Walker Construction, North Richland Baptist and the Liberty Bank are all under agreement. All property owners are positive concerning improvements. Item for informational purposes only. 6. ADJOURNMENT Mayor Trevino adjourned the meeting at 4:19 p.m. TIF No. 1 Subject: Discuss and Approve TIF No. 1 and TIF No. 1A Board Meeting Date: 4/28/2014 2013 Annual Report Agenda Number: 2014-01 Larry Koonce, Director of Finance City of North Richland Hills will present the attached executive summary and annual report for fiscal year ended September 30, 2013. The annual reports have been submitted to the State Comptroller as required. After the presentation of financial status of TIF No. 1 and TIF No. 1A, we recommend the Board take action as to the acceptance of the report. NI~H CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council FROM: Larry Koonce, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No.1 and 1A Executive Summary Annual Report September 30, 2013 DATE: February 26,2014 Attached for your information is the combined Tax Increment Reinvestment Zone No.1 and 1A Annual Report for the Year Ended September 30, 2013. TIF No.1 TIF No. 1 was created by the City of North Richland Hills in 1998. The TIF was created to provide public drainage improvements around the 300,000 square foot Richland Plaza Shopping Center. The shopping center had declined to the point that nearly all tenants had vacated , and total values were a little over $1 million. It was believed that unless public drainage improvements were made to divert flooding from the Richland Plaza parking lot to Mackey Creek, the development was destined to further decay and decline. At the time the TIF No.1 was created, the City of NRH, Birdville Independent School District, Tarrant County, Tarrant County College, and Tarrant County Hospital District all agreed to participate at 100% for the life of the TIF. Certificates of Obligation were sold in the amount of $850,000 for the TIF portion of the $1.3 million public drainage project (the balance was paid by the City of NRH). The TIF debt has a maturity of twenty years to 2018. The Certificates were issued in 1998 and the public drainage improvements were completed in fiscal year 2000. In fiscal year 2013, the TIF No. 1 received taxes in the amount of $322,356 from property owners. For the year ended September 30, 2013, outstanding principal and interest on the original Certificates totaled $ 230,288. Principal, interest and associated payments totaled $53,963. Cash balance at fiscal year end was $1,626,139. The Hills, a 300,000 square foot business center in the southern most part of North Richland Hills, includes all of the taxable property in the original TIF1. The captured appraised value of all the property in TIF1 for FY 2013 was $13,42.9,571. TIF 1A In November 2008 the City of North Richland Hills expanded TIF1. The boundaries of the expansion of TIF1 included all commercial properties in the Boulevard 26 corridor area (except North Hills Hospital and Calloway Creek property) from the southern City limits to Loop 820. The expanded zone encompasses approximately 392 acres, with a 2008 base value of real property of $83.7 million. The TIF1 expansion (TIF1A) will legally expire in 2018, concurrent with the original TIF. The incremental growth in value of property within the expanded area at the time of creation was estimated to be $30 million over 10 years . This project includes the burying of existing above ground utility lines on the North Richland Hills side of Boulevard 26 between Glenview and Rufe Snow. This project will also consist of constructing street and related landscape and streetscape improvements at the intersections of Rufe Snow Drive and Boulevard 26, and Glenview Drive and Boulevard 26. In 2010 The City of North Richland Hills issued certificates of obligation in the amount of $1,000,000 towards these projects. Project expenditures in the amount of $214,860 were incurred in FY 2013. Principal, interest and associated payments totaled $136,796. Shortly after September 30, 2013 fiscal year end, certificates of obligation in the amount of $2,000,000 were issued to complete the projects. Results of operations of this sale and the use of certificate proceeds will be reported in fiscal year 2014. Property Values within the TIF1A boundary declined by about $3 million in 2012 (fiscal year 2013). The taxable value for tax year 2012 was $71.8 million or nearly a $12 million loss in value since 2008. Because no incremental value has been realized, $0 property tax dollars were collected in FY 2013 or have been collected since the district was expanded in 2008. For the year ended September 30, 2013, outstanding principal and interest on the Certificates totaled $716,514. Fortunately, when TIF1 was expanded by TIF1A, the City was able to incorporate the existing balances and future tax revenues to be collected from TIF1 to pay for TIF1A projects . In 2008 the combined TIFs began with over $1 million cash from net operations of TIF1 since 1999. TIF1 also produces net revenues over expenditures of nearly $200,000 annually. Combined Cash from TIF1 and TIF1A totaled $2,167,951 at September 30,2013. Larry Koo e ~~ D::of1nance Attachments : TIRZ No .1 and TIRZ No .1A Combined Annual Report FY 2013 City of North Richland Hills Tax Increment Reinvestment Zone No.1 and 1A Annual Report Year Ended September 30,2013 Amount & Source of Revenue in the Tax Increment Fund FY 2013: Property Tax Revenues $ 322,356 Investment Income $ 30,938 Total Revenues in Fiscal Year 2013 $ 353,294 Amount and Purpose of Expenditures of the Fund FY 2013: Principal, Interest, Issuance & Paying Agent Payments on Certificate Indebtedness $ 190,759 Project Expenditures 2013 $ 214,860 --'----~- Total Fund Expenditures in Fiscal Year 2013 $ 405,619 ='======~= Principal & Interest due on outstanding indebtedness as of September 30,2013: Principal Outstanding $ 870,000 Interest Outstanding _$"--__7'-'6;..:.,80-'0:..::2'­ Total Principal & Interest Outstanding 9-30­ 2013 $ 946,802 ~=~~== For TIF1 Captured Appraised Value shared by the Municipality & Other Taxing Entities and total amount of tax increments received: Captured 1998 Base Year Taxable Value Appraised Taxing Unit Appraised Value 2012 Value 2012 City of North Richland Hills $1,152,929 $14,582,500 $13,429,571 Birdville LSD. $1,152,929 $14,582,500 $13,429,571 Tarrant County $1,152,929 $14,582,500 $13,429,571 Tarrant County Hospital District $1,152,929 $14,582,500 $13,429,571 Tarrant County College $1,152,929 $14,582,500 $13,429,571 Tax Revenues Outstanding Total Tax Revenues Collected TIF1 For TIF1A Captured Appraised Value shared by the Municipality & Other Taxing Entities and total amount of tax increments received: Captured 2008 Base Year Taxable Value Taxable Value Taxing Unit Taxable Value 2012 2012 City of North Richland Hills $83,563,510 $71,706,453 ($11,857,057) Tarrant County $83,682,685 $71,760,974 ($11 ,921 ,711 ) Tarrant County Hospital District $83,682,685 $71,760,974 ($11,921,711) Tarrant County College $83,689,685 $71,760,974 ($11,928,711 ) Tax Revenues Outstanding TIF1A Total Tax Revenues Collected TIF1A Total Combined Tax Revenues Collected TIF1 and TIF1A Tax Rate/$100 FY 2013 $0.570000 $1.435000 $0.264000 $0.227897 $0.148970 Tax Rate/$100 FY 2013 $0.570000 $0.264000 $0.227897 $0.148970 Tax Revenue Billed FY 2013 $76,549 $192,714 $35,454 $30,606 $20,006 $355,329 ($32,973) $322,356 Tax Revenue Billed FY 2013 $0 $0 $0 $0 $0 $0 $Q Larry Koonce Director of Finance City of North Richland Hills, Texas K:acct\tifs\TIF1 and 1A Annual Report 2013 TIF No. 1 Subject: Update of TIF No. 1A Expansion Public Board Meeting Date: 4/28/2014 Improvement Projects Agenda Number: 2014-02 John Pitstick, City of North Richland Hills Director of Planning and Development will present an update of public improvements within the expanded district.