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HomeMy WebLinkAboutTIF1 2008-11-06 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 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 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 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 George Staples Attorney for the City of North Richland 1 Hills Absent: 4 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. i i 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. 4 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 Dolores 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. 1