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HomeMy WebLinkAboutTIF2 2013-04-22 Agendas REINVESTMENT ZONE NUMBER 2, 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 22, 2013 4:15 P.M. AGENDA 1. Call to Order 2. Approval of October 13, 2009 Board Minutes 3. Appointment of Vice -Chair and Secretary 4. Discuss and approve TIF No. 2 2012 Annual Report 5. Discuss and approve amending the Bylaws of Reinvestment Zone Number 2, changing the month of annual meetings from November to April. Resolution 2013- 001 6. 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 TUESDAY, OCTOBER 13, 2009 - 5:00 P.M. Present: Oscar Trevino, Chairman Mayor Scott Turnage Mayor Pro Tem John Lewis Council Member Ken Sapp Council Member Tim Welch Council Member David Whitson Council Member Drenda Witt Tarrant County Hospital District 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 Mary Peters Public Information Officer Bill Guitema Arcadia Realty Corporation James Archie Realty Capital Corporation 1. CALL TO ORDER Mayor Trevino called the meeting to order at 5:00 p.m. 2. APPROVAL OF NOVEMBER 6, 2008 BOARD MINUTES Drenda Witt moved to approve the minutes with the correction that Dr. Darlage was on the premises and arrived before the meeting was adjourned. Dr. Darlage seconded the motion. Motion to approve carried 9 -0. 3. APPOINTMENT OF VICE -CHAIR AND SECRETARY Dr. Larry Darlage nominated Drenda Witt to serve as Vice Chairman. Council member Whitson seconded the motion. Motion to approve carried 9 -0. Drenda Witt nominated Dr. Larry Darlage to serve as Secretary. Council member Welch seconded the motion. Motion to approve carried 9 -0. 4. DISCUSS AND APPROVE 2009 ANNUAL REPORT Director of Finance Larry Koonce provided an overview of TIF No. 2 Annual Report. The TIF was created in 1999 with three projects: a $10.2 million library, $21.9 million recreation center and an $8.2 Tarrant County College conference center and fine arts center. Currently we are in the design stages of the recreation center. The library project was completed and the new library opened in the Spring of 2008. The City issued $10.2 million in CO's and is in the process of paying that off over 20 years. An additional $2,000,000 in debt has been issued for the design of the recreation center project and the City has dedicated $1,100,000 of 4B sales tax toward the recreation center project. The captured appraised value in 2008 was $222,126,892 for the City of North Richland Hills and $241,012,859 for Tarrant County. 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. Council member Welch moved to approve the 2009 Annual Report. Carolyn Sims and Council member Lewis seconded the motion. Motion to approve carried 9 -0. Carolyn Sims excused herself for another meeting at 5:06. 5. Overview /Status Report on the Recreation Center Project Vickie Loftice, Director of Parks and Recreation, presented the overview /status report of the TIF No. 2 Recreation Center project. Ms. Loftice stated on October 26 staff will present to City Council the components that will be included in the recreation center based on all the public input meetings that have been held. These meetings verified many of the original programmatic elements as recommended in the Leland Study, the Town Center Recreation Center Executive Summary, and TIF No. 2 Recommendations during the initial planning stages between 1998 and 2000. Also on October 26 the schematic drawing and the massing of the building will be presented as well as the site plan. The project cost is $21.9 million with the consultant being Brinkley Sargent Architects. There have been two public input meetings and 14 focus group meetings. In addition, there have been three senior input meetings to consider adding senior services to the building. Attendance at the senior meetings was approximately 300 with a very favorable response. The City has purchased 10 acres immediately north of the library for the location of the recreation center. This land was purchased with City of North Richland Hills gas development funds. Senior services, which will be recommended to Council on October 26, is the only component not included in the original plan. A new stand alone senior center would cost between $5,000,000 and $7,000,000. Studies have shown future senior services will be included in community centers. Approximately 95% of the seniors attending the meetings agreed the community center location was the most favorable. A senior services committee has been established with 12 members. The senior component funding is being considered either from the Park and Recreation Facilities Development Corporation 4B Sales Tax or an amendment to the TIF No. 2 plan. With the direction and approval of Council the Schematic Design and Design Development will be completed in April 2010. Construction should begin around September 2010, and be completed by the end of December 2011, with the center ready to be occupied by January 2012. Ms Witt asked the average age of the 300 people attending the senior meetings? Ms. Loftice advised the group was probably around 65 to 70 years of age. She added that approximately half of the people that came to the meetings had never participated at either of the other senior centers because they didn't feel the space provided was what they were interested in. They are very interested in modern facilities with the fitness component and the aquatic component. Mayor Trevino added the seniors that were targeted were North Richland Hills residents and seniors who were not participating at the current centers were asked why they were not participating. Ms. Witt also asked if the other centers would be closed? Ms. Loftice stated it would not be feasible to operate three senior centers. Residents were told the other centers would be closed. Mayor Trevino added the Food Lion would also be used as a community center. 6. Update on the Tarrant County College District Conference Center Project Larry Koonce, Director of Finance, provided an update on the Tarrant County College District ( "TCCD ") conference center project. A cash flow analysis has been completed in conjunction with the other two projects and cash balances are approximately $13 million as of September 30, 2009. This project was included in the original plan with total project cost of $8,213,279 with the final breakdown being determined by Tarrant County College District. It is determined the TIF is now at the point where the dollars may be transferred to TCCD. Dr. Darlage requested that a letter be sent to him acknowledging this. City Manager Mark Hindman assured Dr. Darlage that the City would send him a letter of acknowledgement. Mayor Trevino adjourned the meeting at 5:19 p.m. TIF No. 2 Subject: Appointment of Vice -Chair and Secretary Board Meeting Date: 4/22/2013 Agenda Number: 2013 - 01 The Board will appoint a Vice-Chairman and Secretary for a two (2) year term. Current officers are Drenda Witt, Vice - Chairman and Dr. Larry Darlage, Secretary. Recommendation: To appoint the Vice -Chair and Secretary. TIF No. 2 Subject: Discuss and Approve TIF No. 2 2013 Annual Report Board Meeting Date: 4/22/2013 Agenda Number: 2013 -02 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, 2012. The annual report has been submitted to the State Comptroller as required. After the presentation of financial status of TIF No. 2, we recommend the Board take action as to the acceptance of the report. Nit.H CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council FROM: Larry Koonce, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No. 2 Executive Summary for Fiscal Year Ended September 30, 2012 DATE: April 22, 2013 Attached for your information is the Annual Report of Tax Increment Reinvestment Zone No. 2, For the Year Ended September 30, 2012. 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 a fifteen -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 captured appraised value in 2011 (fiscal year 2012) was $209,204,845 for the City of NRH, and $229,869,077 for Tarrant County. The District received $2,565,272 from all taxing jurisdictions in fiscal year 2012. This was sufficient to cover all TIF 2 related expenses for fiscal year 2012. The captured appraised value in 2012 (fiscal year 2013) was $221,657,159 for the City of NRH, and $241,447,380 for Tarrant County. The District billed $2,806,246 to taxing jurisdictions in March 2013. 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. In 2010 the City issued $18.8 million dollars for the construction and completion of the recreation center to be paid with TIF 2 revenues. The total cost of the project funded with TIF tax dollars was $21.9 million in accordance with the original project plan. Opening of the recreation center occurred in the spring of 2012. It is located within the TIF 2 boundaries, adjacent to the library. The fiscal year 2012 report (see attached) includes TIF 2 revenues and expenditures for the year, and outstanding principal and interest as of September 30, 2012. Revenues projected over the life of the TIF will pay for the outstanding principal and interest and all other original project plan costs. Larry Kadnce Director of Finance Attachment: TIRZ No. 2 Annual Report FY 2012 City of North Richland Hills Tax Increment Reinvestment Zone No. 2 Annual Report Year Ended September 30, 2012 Amount & Source of Revenue in the Tax Increment Fund FY 2012: Property Tax Revenues Collected $ 2,565,272 Developer Infrastructure Contributions $ - Investment Income $ 118,962 Total Revenues in Fiscal Year 2012 $ 2,684,234 Amount and Purpose of Expenditures of the Fund FY 2012: Principal, Interest, Issuance & Paying Agent Payments on Certificate Indebtedness $ 2,659,610 Developer Infrastructure $ - Recreation Center Project Expenditures $ 6,242,929 Total Fund Expenditures in Fiscal Year 2012 $ 8,902,539 Principal & Interest due on outstanding indebtedness as of September 30, 2012: Principal Outstanding $ 25,224,454 Interest Outstanding $ 6,992,319 Total Principal & Interest Outstanding 9 -30 -2012 $ 32,216,773 Tax Increment Base & Current Captured Appraised Value Retained by the Zone: Captured Appraised Value shared by the Municipality & Other Taxing Entities and total amount of tax increments received : Captured Tax Property Tax 1999 Base Year Taxable Value Appraised Rate /$100 Revenue FY Taxing Unit Appraised Value 2011 Value 2011 FY 2012 2012 City of North Richland Hills $40,577,462 $249,782,307 $209,204,845 $0.570000 $1,192,468 Tarrant County $40,577,462 $270,446,539 $229,869,077 $0.264000 $606,854 Tarrant County Hospital District $40,577,462 $270,446,539 $229,869,077 $0.227897 $523,865 Tarrant County College $40,577,462 $270,488,539 $229,911,077 $0.148970 $342,499 $2,665,685 Total billings outstanding $ (100,413) Taxes Collected FY 2012 $2,565,272 This report submitted by : t iiA 1y, Larry Koonce() Director of Finance City of North Richland Hills, Texas K:acct\tifs\TIF2 Annual Report 2012 TIF No. 2 Subject: Approval of Amendments to the TIF #2 Bylaws, Board Meeting Date: 4/22/2013 Changing the Month of Annual Meetings from November to April Resolution No. 2013 -001 Agenda Number: 2013 -03 On March 25, 2013 the North Richland Hills City Council approved a resolution amending the Bylaws of TIF District No. 2 changing the month of annual meetings from November to April. This allows both Board meetings of TIF #1 (whose board meeting is required in April each year) and TIF #2, which have some board members in common, to be held on the same day in April each year. When the TIF Districts were established, annual board meetings were required. TIF No. 1 required a board meeting in April, and TIF No. 2 required a board meeting in November. An April meeting is preferable for both boards since both boards have members in common and can meet on the same day back to back. The resolution approved by Council amended the TIF 2 bylaws changing the meeting to April. We are asking the TIF 2 Board to consider adopting a resolution which accepts the change to the bylaws. Recommendation: Approve Resolution No. 2013 -001 amending the Bylaws of TIF District No. 2 changing the month of annual meetings from November to April. RESOLUTION NO. 2013-001 A RESOLUTION of the Board of Directors of Reinvestment Zone Number 2, City of North Richland Hills adopting certain amendments to the bylaws of Reinvestment Zone Number 2, City of North Richland Hills; and providing an effective date. WHEREAS, the City of North Richland Hills, Texas (the "City ") has created Reinvestment Zone Number 2, City of North Richland Hills (the "Zone "); and WHEREAS, on November 1, 1999, the Board of Directors of the Zone (the "Board ") adopted and approved the bylaws of the Zone (the "Bylaws "); and WHEREAS, Article IV, Section 2 of the Bylaws permits the Bylaws to be amended at any time by the City Council of the City (the "Council "), after consultation with the Board, by adopting an amendment by resolution of the Council and delivering the Bylaws to the Secretary of the Board; and WHEREAS, the Council has adopted an amendment to the Bylaws by resolution (the "City Resolution ") and has heretofore delivered the City Resolution and the amended Bylaws to the Secretary of the Board; now, therefore, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF REINVESTMENT ZONE NUMBER 2, CITY OF NORTH RICHLAND HILLS: SECTION 1. Amendment. The Board hereby accepts the City Resolution and the amendment to the Bylaws, and such City Resolution is attached hereto as Exhibit A and incorporated herein by reference for all purposes. SECTION 2. Severability. If any provision of this Resolution or the application thereof to any circumstance shall be held to be invalid, the remainder of this Resolution and the application thereof to other circumstances shall nevertheless be valid, and the Board hereby declares that this Resolution would have been enacted without such invalid provision. SECTION 3. Incorporation of Findings and Determinations. The findings and determinations of the Board contained in the preamble hereof are hereby incorporated by reference and made a part of this Resolution for all purposes as if the same were restated in full in this Section. SECTION 4. Public Meeting. It is officially found, determined and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by V.T.C.A., Government Code, Chapter 551, as amended. SECTION 5. Effective Date. This Resolution shall be in full force and effect from and after its passage on the date shown below and it is so resolved. 65822604.1/10611340 PASSED, APPROVED AND ADOPTED this the 22 day of April, 2013. BOARD OF DIRECTORS, REINVESTMENT ZONE NUMBER 2, CITY OF NORTH RICHLAND HILLS By: Chairman ATTEST: Secretary 65822604.1/10611340 5-1 EXHIBIT A CITY RESOLUTION 65822604.1/10611340 RESOLUTION NO. 2013 -011 A RESOLUTION AMENDING THE BYLAWS OF REINVESTMENT ZONE NUMBER 2, CITY OF NORTH RICHLAND HILLS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, pursuant to the provisions of the Tax Increment Financing Act, V.T.C.A., Tax Code, Chapter 311, as amended (the "Act "), and pursuant to Ordinance No. 2420, adopted on October 25, 1999 by the City Council (the "Council ") of the City of North Richland Hills, Texas (the "City "), the City created a reinvestment zone known as Reinvestment Zone Number 2, City of North Richland Hills (the "Zone "); and WHEREAS, on November 1, 1999, the Board of Directors of the Zone (the "Board ") adopted and approved the bylaws of the Zone (the "Bylaws "); and WHEREAS, Article IV, Section 2 of the Bylaws permits the Bylaws to be amended at any time by the Council, after consultation with the Board, by adopting an amendment by resolution of the Council and delivering the Bylaws to the Secretary of the Board; and WHEREAS, the Council has consulted with the Board and hereby finds and determines that the Bylaws should be amended as set forth herein; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: Section 1. Bylaws Amendment Approval. The last sentence of Article 11, Section 3 of the Bylaws shall be and is hereby amended in its entirety to read as follows: "There shall be at least one Regular Meeting held each year in the month of April." Section 2. Bylaws Remain Otherwise Unchanged. Aside from the change to the above - referenced section of the Bylaws approved by this Resolution as aforestated, all other terms and conditions of the Bylaws shall remain unchanged and shall continue to be in full force and effect. Section 3. Severability. If any provision of this Resolution or the application thereof to any circumstance shall be held to be invalid, the remainder of this Resolution and the application thereof to other circumstances shall nevertheless be valid, and the Council hereby declares that this Resolution would have been enacted without such invalid provision. Resolution No. 2013 -011 Page 1 of 2 3 , Section 4. Incorporation of Findings and Determinations. The findings and determinations of the Council contained in the preamble hereof are hereby incorporated by reference and made a part of this Resolution for all purposes as if the same were restated in full in this Section. Section 5. Public Meeting. It is officially found, determined and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all ' as required by V.T.C.A., Government Code, Chapter 551, as amended. Section 6. Effective Date. This Resolution shall be in full force and effect from and after its passage on the date shown below and it is so resolved. f PASSED AND APPROVED this the 25th day of March, 2013. • • , ,.,��`�a����:tt gt :, .`` `\\, ' H r���l� /f ly/ i , e.--- . - -......0 c '% CITY • • RTH • LAND HILLS E= ‘c n , I _ i B �� r r y � scar revs 4, ayor AT-OT; h .. , ,„,-,, ‘e .............. ...-- aato bsIt %. \\ N --g Patricia Hutson, City Secretary { AP ' r. ' E ' AS TO FORM AND LEGALITY: 4a ti A .J.___. . G - : g e A. ‘" ples, y A tt orney APPROVED AS TO CONTENT: , 4/t/ 14 Aw OamI Larry Klan e, Director of Finance , Resolution No. 2013 -011 Page 2 of 2 ; s i i