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HomeMy WebLinkAboutTIF1 2009-10-13 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 13, 2009 - 4:00 P.M. Present: Oscar Trevino, Chairman Mayor Scott Turnage Mayor Pro Tem John Lewis Council Member Tim Welch Council Member David Whitson Council Member Drenda Witt Tarrant County Hospital District Dolores Webb Birdville I.S.D. Dr. Larry Darlage Tarrant County College Carolyn Sims Precinct Administrator for Commissioner Gary Fickes, Northeast SubCourthouse, Precinct #3 Others Present: Mark Hindman City Manager Karen Bostic Assistant City Manager Jimmy Perdue Assistant City Manager Mike Curtis Managing Director of Development Services Vickie Loftice Interim Managing Director of Community Services Larry Koonce Director of Finance John Pitstick Director of Planning & Development Elizabeth Reining Assistant to the City Manager Craig Hulse Director of Economic Development 4 Mary Peters Public Information Officer Dr. Quentin Burnett Birdville I.S.D. 1. CALL TO ORDER Mayor Trevino called the meeting to order at 4:00 p.m. 2. APPROVAL OF NOVEMBER 6, 2008 BOARD MINUTES Dolores Webb moved to approve the minutes. Dr. Larry Darlage seconded the motion. Motion to approve carried 9 -0. 3. APPOINTMENT OF VICE -CHAIR AND SECRETARY Dr. Larry Darlage nominated Dolores Webb to serve as Vice Chairman. Drenda Witt seconded the motion. Motion to approve carried 9 -0. Drenda Witt nominated Dr. Larry Darlage to serve as Secretary. Dolores Webb seconded the motion, Motion to approve carried 9 -0. 4. DISCUSS AND APPROVE TIF NO. 1 2009 ANNUAL REPORT Finance Director Larry Koonce provided an overview of TIF No. 1 Annual Report. Taxes in the amount of $224,455 were received from property owners in fiscal year 2009. Outstanding principal and interest on the Certificates totaled $457,117 and principal interest and associated payments totaled $59,467 for fiscal year 2009. The end of the year cash balance is estimated at $1,081,374. Each one of the taxing entities has approved their agreement to participate in the expansion (TIF No. 1A). In December the City of North Richland Hills will be issuing $4.5 million dollars in certificates of obligation debt for the projects in the expansion plan. Councilman Turnage moved to approve TIF No. 1 2009 Annual Report. Councilman Whitson seconded the motion. Motion to approve carried 9 -0. 4. Consider a resolution of the Board of Directors of Reinvestment Zone Number 1 City of North Richland Hills adoption certain amendments to the financing plan for Reinvestment Zone Number 1, City of North Richland Hills, and authorizing and approving other matters incidental and related thereto Finance Director Larry Koonce presented the amended financing plan for expansion of TIF No. 1. The original plan anticipated 100% participation from all entities. TCC has agreed to 50% participation. The amended plan is based on the new participation percentages. The estimated tax revenues in the original plan were $4.2 million with the amended plan estimated at $3.5 million. Reasons for the decrease include the level of participation, a couple of entities slightly decreased their tax rates in 2010 lowering the property tax revenues and Tarrant Appraisal District roll indicated $146,915 in captured evaluation as compared to $3,000,000 estimated in the approved plan. The first year's growth is less and subsequent year's growth has been slowed on the amended plan. The total value growth is still estimated at $30,000,000. Another change was made on the estimated debt payments. The original interest rates on the bonds were estimated at 5 %. This has been reduced to $3.85 %. The difference in terms of the overall cash flow coverage of the original plan changed from approximately $500,000 to approximately $3,000 in the amended plan. Mr. Koonce noted the total at the bottom of the page for The Estimated Investment Earnings on Construction Funds is for fiscal year 2011 based on a 1% earning. Dolores Webb moved to approve Resolution 2009 -001 as presented. Carolyn Sims seconded the motion. Councilman Lewis summarized the amended plan stating the TIF had approximately $1,081,000 in house with estimated revenues of $3,542,000 for a total of $4,623,000. The TIF will have a positive cash flow with the anticipated debt in spending of $4,132,000. Motion to approve carried 9 -0. 5. Update on TIF No. 1 Expansion Projects Director of Planning & Development, John Pitstick presented an update on the projects. He recognized Lisa McMillan and Carolyn Sims for their work in getting the approval of the expansion plan. Within the existing boundaries of 95 acres there are 700 to 800 jobs and revenues have increased from $1,000,000 to approximately $15 million with half coming from the TIF and the other half from non -TIF revenues going directly to the taxing entities. Mr. Pitstick presented an area map outlining the TIF expansion area in relation to BISD, the JPS Clinic, Tarrant County Sub - courthouse, and Tarrant County College campus. The City is working with Richland Hills in the proposed redeveloped area. The map shows all proposed commercial tracts south of Loop 820 with the exception of the hospital and old mall property included in the TIF boundary. A significant amount of dollars improving water, sewer, and streets in the redevelopment area has been spent by the City. The plan proposes $3,500,000 in public improvement with $30,000,000 in projected growth over the next nine years. The expansion is limited to nine years. The City proposes to connect existing businesses to underground services and work with Richland Hills to make intersection improvements at Glenview =Er and Rufe Snow on Boulevard 26. The City has been working with TXDOT to remove a section south of Loop 820 to State Highway 10 from the state highway system to be able to make improvements. North Richland Hills will take full responsibility of maintaining the section. The City is also meeting with ONCOR in coordinating the burial of overhead utilities lines. Mayor Trevino recognized BISD for supporting the TIF. The neighborhood revitalization of the south side of North Richland Hills is critical. He recognized the two good elementary schools which should draw young families to move in to the area. The City spent approximately $800,000 of CIP money concentrated into a neighborhood in the area and also has CDBG money being spent on neighborhoods. Some of the budget this year includes making a semi-community center out of Food Line building. It also includes some major amenities at Rufe Snow and Glenview to enhance the look in the area and to make it safer and a more viable commercial corridor. The goal is to develop an area to attract young families instead of homes becoming rental property. The City has an agreement with Richland Hills for $500,000 in intersection improvements freeing up money do more neighborhood revitalization. Dolores Webb asked if there were any reason TXDOT would not want to give up the section the City has requested to be removed from the state highway system. Mayor Trevino answered TXDOT was not supportive of the beautification improvements proposed which do not fit their criteria. Mike Curtis stated TXDOT is in support of turning this section over to City. Mayor Trevino added the City already maintains traffic signalizations at the intersections. 6. ADJOURNMENT Mayor Trevino adjourned the meeting at 4:28 p.m. r 4