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Home My WebLink AboutZBA 2016-06-27 Agendas CITY OF NORTH RICHLAND HILLS, TEXAS TAX INCREMENT REINVESTMENT ZONE NUMBER 2 (TIF2) BOARD OF DIRECTORS MEETING AGENDA NORTH RICHLAND HILLS CITY COUNCIL WORKROOM 4301 CITY POINT DRIVE NORTH RICHLAND HILLS, TX 76180 MONDAY, JUNE 27, 2016 AT 5.15 P.M. AGENDA 1. Call to Order 2. Approval of November 9, 2015 Board Minutes 3. Discuss and approve TIF No. 2 2014 Annual Report 4. Update on TIF No. 2 activity. This is an information item only; no Board action is anticipated. 5. Adjournment TIF2 Agenda 06-27-2016 MINUTES OF THE TIF BOARD MEETING FOR REINVESTMENT ZONE #2 OF THE CITY OF NORTH RICHLAND HILLS, TEXAS BOARD OF DIRECTORS MEETING — COUNCIL WORK ROOM AT CITY HALL TUESDAY, NOVEMBER 9, 2015 - 5:15 P.M. Present: Oscar Trevino, Chairman Mayor David Whitson Council Member Rita Wright Oujesky Council Member Scott Turnage Council Member Tim Welch Council Member Tito Rodriguez Council Member Rebecca Barksdale Precinct Administrator for Commissioner Gary Fickes, Northeast SubCourthouse, Precinct#3 Mark McClendon Tarrant County College Absent: Scott Rule Tarrant County Hospital District Others Present: Mark Hindman City Manager Karen Bostic Assistant City Manager Paulette Hartman Assistant City Manager Chief Perdue Director of Public Safety George Staples City Attorney Kent Austin Director of Finance Marrk Callier Management Assistant Craig Hulse Director of Economic Development Kristin James Assistant to City Manager 1. CALL TO ORDER Mayor Trevino called the meeting to order at 5.15 p.m. 2. APPROVE MINUTES OF THE APRIL 28, 2014 REINVESTMENT ZONE NUMBER 2 BOARD MEETING Council member Welch moved to approve the minutes. Council member Wright Oujesky seconded the motion. Motion to approve carried 8-0. 3. CONSIDER APPOINTMENT OF VICE-CHAIR AND SECRETARY TO THE TAX INCREMENT REINVESTMENT ZONE NUMBER 2 Council member Whitson nominated Rita Wright Oujesky to serve as Vice Chair and Tim Welch to serve as Secretary. Council member Rodriguez seconded the motion. Motion to approve carried 8-0. 4. DISCUSS AND ACCEPT TAX INCREMENT REINVESTMENT ZONE NUMBER 2 2014 ANNUAL REPORT Kent Austin, Director of Finance, presented the 2014 TIF No. 2 Annual Report. Total revenues for fiscal year 2014 is $2.98 million. Fund expenditures which include principal interest and related charges are $2.6 million. Outstanding debt as of September 30, 2014 is $26.74 million. The bottom half of the report displays the original appraised value of the TIF, current value and the captured increment giving the basis for the amount billed to each participating entity. In response to a question from Council member Welch's Mr. Hindman informed the Board the County and Hospital District are capped at a dollar amount instead of years. Staff will research when that amount would be reached. Based on conservative growth it is anticipated to fully fund the project plan by 2022 or 2023. Council member Wright Oujesky moved to accept TIF No. 2 2014 Annual Report. Council member Turnage seconded the motion. Mayor Trevino commented the TIF No. 2 is a healthy TIF and considering the completion of the County and the other participant's participation it will be finished in a timely manner. Motion to approve carried 8-0. 5. DISCUSS AND CONSIDER APPROVAL TO ENLARGE THE BOUNDARIES AND AMEND THE PROJECT PLAN OF TIF NO. 2 Mr. Hindman advised the Board the last remaining project within the TIF is the Performing Arts Center, a TCC project. The College identified their preference for the facility to be located in conjunction with their campus from the original location based on the size and scope of the project that was under design and the needs of TCC. A reason for the request was they will be using it not only as a Performing Arts Center but also for instructional training. There is concern for safety for students walking across Boulevard 26 over to the other location. One other reason provided was to be able to leverage their resources and assets by locating it on campus. The college submitted a formal request to enlarge the boundaries of the TIF and to clarify the definition as a performing arts center. Kent Austin informed the Board the TIF project plan and boundaries could be amended by an ordinance prepared by the City Attorney accompanied by the metes and bounds description. A narrative description of the change in the nature of the facility from the conference center to a visual, technical and performing arts center is provided along with a map showing how the TIF would be expanded to encompass the NRH portion of the Tarrant County Northeast campus. An additional 43'/2 acres would be added with no financial impact of the TIF because it is all non-taxable property. The project plan is $8.23 million for this project. Council member Wright Oujesky moved to enlarge the boundaries and amend the project plan of TIF No. 2. Council member Turnage seconded the motion. Discussion: Mayor Trevino thanked the Board and TCC for meeting with the City's Council Committee and making this come together. He thanked Erma's leadership bringing this through fruition with the help of the TCC Board. Mark McClendon commented the Board was also very thankful for the treatment and dialog with Council and staff. They were also very impressed with the flexibility and good conversation. Motion to approve carried 8-0. Mayor Trevino adjourned the meeting at 5.29 p.m. MItH CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council FROM: Kent Austin, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No. 2 Executive Summary for Fiscal Year Ended September 30, 2015 DATE: January 29, 2016 Attached for your information is the Annual Report of Tax Increment Reinvestment Zone No. 2, for the Year Ended September 30, 2015. 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 2014 (fiscal year 2015) was $232,351,965 for the City of NRH, and $254,940,187 for Tarrant County. The District billed $2,959,627 to taxing jurisdictions in March 2015. 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. In November 2015 the boundaries of TIF No. 2 were amended to include the NRH portion of the Tarrant County College northeast campus. The change included only tax-exempt property and was designed to allow TCC to use TIF No. 2 money for a performing arts center on campus. The fiscal year 2015 report (see attached) includes TIF 2 revenues and expenditures for the year, and outstanding principal and interest as of September 30, 2015. Revenues projected over the life of the TIF will pay for the outstanding principal and interest and all other original project plan costs. Kerft Austin Director of Finance Attachment: TIRZ No. 2 Annual Report FY 2015 City of North Richland Hills Tax Increment Reinvestment Zone No. 2 Annual Report Year Ended September 30, 2015 Amount&Source of Revenue in the Tax Increment Fund FY 2015: Property Tax Revenues Collected $ 3,057,885 Investment Income $ 79,239 Total Revenues in Fiscal Year 2015 $ 3,137,124 Amount and Purpose of Expenditures of the Fund FY 2015: Principal, Interest, Issuance& Paying Agent Payments on Certificate Indebtedness $ 2,503,532 Total Fund Expenditures in Fiscal Year 2015 $ 2,503,532 Principal &Interest due on outstanding indebtedness as of September 30, 2015: Principal Outstanding $ 19,865,000 Interest Outstanding $ 4,220,054 Total Principal& Interest Outstanding 9-30-2015 $ 24,085,054 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 2014 Value 2014 FY 2015 2015 City of North Richland Hills $56,904,694 $289,256,659 $232,351,965 $0.570000 $1,324,406 Tarrant County $56,904,694 $311,844,881 $254,940,187 $0.264000 $673,042 Tarrant County Hospital District $56,904,694 $311,844,881 $254,940,187 $0.227897 $581,001 Tarrant County College $56,904,694 $311,872,881 $254,968,187 $0.149500 $381,177 $2,959,627 Total billings outstanding $ (24,751) Prior Year Receivables Paid in FY 2015 $ 123,009 Taxes Collected FY 2015 $3,057,885 This report submitted by Kent:rAustin Director of Finance City of North Richland Hills, Texas K:acct\tifs\TIF2 Annual Report 2015