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HomeMy WebLinkAboutTIF2 2021-10-11 Agendas k4Ft, D HILLS CITY OF NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NO. 2 AGENDA 4301 CITY POINT DRIVE NORTH RICHLAND HILLS, TX 76180 MONDAY, OCTOBER 11, 2021 REGULAR MEETING: 5:05 PM Held in the Community Room A. CALL TO ORDER B.1 CITIZEN PRESENTATION An opportunity for citizens to address the Tax Increment Reinvestment Zone No. 2 on matters which are not scheduled for consideration by the Tax Increment Reinvestment Zone No. 2 or another City Board or Commission at a later date. In order to address the Tax Increment Reinvestment Zone No. 2 during citizens presentation, a Public Meeting Appearance Card must be completed and presented to the recording secretary prior to the start of the Tax Increment Reinvestment Zone No. 2 meeting. B.2 PUBLIC COMMENTS An opportunity for citizens to address the Tax Increment Reinvestment Zone No. 2 on matters which are scheduled on this agenda for consideration by the Tax Increment Reinvestment Zone No. 2, but not scheduled as a public hearing. In order to address the Tax Increment Reinvestment Zone No. 2 during public comments, a Public Meeting Appearance Card must be completed and presented to the recording secretary prior to the start of the Tax Increment Reinvestment Zone No. 2 meeting. C. ACTION ITEMS C.1 Approve minutes of the June 27, 2016 Tax Increment Reinvestment Zone Number 2 BoardMeeting. Monday, October 11, 2021 Tax Increment Reinvestment Zone No. 2 Agenda Page 1 of 3 C-2 Consider the appointment of a Vice-Chair and Secretary for Tax Increment Reinvestment Zone Number 2. C-3 Discuss and accept Tax Increment Reinvestment Zone Number 2 Annual sports for 01 017, 018, 01 and2020. D. PRESENTATION / DISCUSSION ITEMS D-1 Receive a status report regarding the project and financial status of Tax Increment Reinvestment Zone Number 2. D-2 Receive notice from the Tarrant County Colleqe District that the District no longer plans to pursue the Performing_ Arts Center project that is included in the Tax Increment Reinvestment Zone Number Project Plan. D-3 Receive a presentation from representatives of the Artisan Theater requesting an amendment to the North Richland Hills Tax Increment Reinvestment Zone Number 2 Project Plan and potential allocation of funding for the construction of a theater for use by the Artisan Theater Company. DA Discuss and set a future meeting schedule of Tax Increment Reinvestment Zone Number 2. E. ADJOURNMENT Certification I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on Friday, October 8, 2021 by 3:00 PM. Assistant City Secretary Traci Henderson Monday, October 11, 2021 Tax Increment Reinvestment Zone No. 2 Agenda Page 2 of 3 This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817-427-6060 for further information. Monday, October 11, 2021 Tax Increment Reinvestment Zone No. 2 Agenda Page 3 of 3 IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 2 MEMORANDUM FROM: The Office of the City Manager DATE: October 11, 2021 SUBJECT: Approve minutes of the June 27, 2016 Tax Increment Reinvestment Zone Number 2 Board Meeting PRESENTER: Mark C. Mills, Director of Finance SUMMARY: The minutes are approved by majority vote of the Board of Directors at the Tax Increment Reinvestment Zone No. 2 ("TIF 2") Board meetings. GENERAL DESCRIPTION: Action minutes are prepared for each Board meeting. The minutes for the previous meeting are placed on the agenda for review and approval by the Board of Directors. Upon approval of the minutes, an electronic copy will be uploaded to the City's website. RECOMMENDATION: Approve minutes of the June 27, 2016 Tax Increment Reinvestment Zone Number 2 Board Meeting. MINUTES CITY OF NORTH RICHLAND HILLS, TEXAS TAX INCREMENT REINVESTMENT ZONE NO. 2 BOARD OF DIRECTORS MEETING 4301 CITY POINT DRIVE—CITY COUNCIL WORKROOM NORTH RICHLAND HILLS, TX 76180 MONDAY, JUNE 27, 2016 - 5:30 P.M. Present: Oscar Trevino, Chairman Mayor Scott Turnage Council Member Tim Welch Council Member Tito Rodriguez Council Member Rebecca Barksdale Precinct Administrator for Commissioner Gary Fickes, Northeast Sub Courthouse, Precinct #3 Mark McClendon Tarrant County College Absent: Scott Rule Tarrant County Hospital District David Whitson Council Member Rita Wright Oujesky Council Member Others Present: Mark Hindman City Manager Karen Bostic Assistant City Manager Paulette Hartman Assistant City Manager Mike Curtis Managing Dir. of Dev. Services Jimmy Perdue Director of Public Safety Cara White 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 5.30 p.m. 2. APPROVE MINUTES OF THE NOVEMBER 9, 2015 TAX INCREMENT REINVESTMENT ZONE NO. 2 BOARD MEETING Council Member Rodriguez moved to approve the minutes. Council Member Turnage seconded the motion. The motion to approve carried 6-0. 3. DISCUSS AND ACCEPT TAX INCREMENT REINVESTMENT ZONE NO. 2 2015 ANNUAL REPORT Kent Austin, Director of Finance, presented the 2015 TIF No. 2 Annual Report. Revenues for fiscal year 2015 totaled $3.1 million. Fund expenditures, which included debt service principal, interest, and related charges, amounted to $2.5 million. Outstanding debt as of September 30, 2015 was $24.085 million. The report revealed that the Zone has a captured value ranging from $232,351,965 to $254,940,187, compared to its 1999 base year value of$56,904,694. In response to a question from the last Board meeting, Austin said that the County and Hospital District participation is capped at specific dollars amounts. Tarrant County's cap of $10,449,734 is projected to be reached in FY 2021, and the Hospital District's cap of$9,235,788 is projected to be reached in FY 2022. Council Member Welch moved to accept the TIF No. 2 2015 Annual Report. Council Member Rodriguez seconded the motion. The motion to approve carried 6-0. 4. ADJOURNMENT Mayor Trevino adjourned the meeting at 5.33 p.m. IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 2 MEMORANDUM FROM: The Office of the City Manager DATE: October 11, 2021 SUBJECT: Consider the appointment of a Vice-Chair and Secretary for Tax Increment Reinvestment Zone Number 2. PRESENTER: Mark C. Mills, Director of Finance SUMMARY: The Board of Directors is being asked to appoint a Vice-Chair and Secretary. GENERAL DESCRIPTION: The officers of the Board of Directors include a Chairperson ("the Chair"), a Vice- Chairperson ("the Vice-Chair"), and a Secretary. The Chair of Tax Increment Reinvestment Zone Number 2 ("TIF 2") is appointed by the North Richland Hills City Council for a one-year term. Mayor Oscar Trevino was appointed Chair for a one-year term ending December 31, 2021 at the City Council's January 25, 2021 Council meeting. In accordance with the Bylaws for Tax Increment Reinvestment Zone Number 2, the Board of Directors is to appoint the Vice-Chair and Secretary. Each will serve a two-year term. The previous officers are- Vice-Chair Rita Wright Oujesky; and Secretary Vacant (formerly Tim Welch). The Vice-Chair shall be a member of the Board, shall have such powers and duties as may be assigned to them by the Board, shall exercise those powers and duties, and shall exercise the powers of the Chair during that officer's absence or inability to act. Any action taken by the Vice-Chair in the performance of the duties of the Chair shall be conclusive evidence of the absence or inability to act of the Chair at the time such action was taken. The Secretary shall keep the minutes of all meetings and shall have charge of records, documents and instruments as the Board may direct, all of which shall at all reasonable time be open to inspection, and he/she shall in general perform all duties incident to the office of Secretary subject to the control of the City Council and the Board. If a Board IrLp NOKTH KICHLAN HILLS member is named Secretary, a member of the city of North Richland Hills staff will be designated to assist in the performance of these functions on their behalf. City staff is responsible for providing notice of meetings and preparing meeting agendas. RECOMMENDATION: Appoint a Vice-Chair and Secretary for Tax Increment Reinvestment Zone Number 2. IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 2 MEMORANDUM FROM: The Office of the City Manager DATE: October 11, 2021 SUBJECT: Discuss and accept Tax Increment Reinvestment Zone Number 2 Annual Reports for 2016, 2017, 2018, 2019, 2020. PRESENTER: Mark C. Mills, Director of Finance SUMMARY: Each Tax Increment Reinvestment Zone is required to submit an annual report detailing its financial activities for the year. GENERAL DESCRIPTION: Each Tax Increment Reinvestment Zone is required to submit an annual report detailing its financial activities for the year. While the annual reports were filed and distributed to each participating entity on an annual basis, the reports were not formally presented to the Board of Directors. Copies of the following annual reports have been attached to this item for the Boards review and consideration: • 2016 Tax Increment Reinvestment Zone No. 2 Annual Report; • 2017 Tax Increment Reinvestment Zone No. 2 Annual Report; • 2018 Tax Increment Reinvestment Zone No. 2 Annual Report; • 2019 Tax Increment Reinvestment Zone No. 2 Annual Report; and • 2020 Tax Increment Reinvestment Zone No. 2 Annual Report. Following the presentation, staff will request that the Board vote to accept the annual reports. RECOMMENDATION: Accept Tax Increment Reinvestment Zone Number 2 Annual Reports for 2016, 20177 20187 2019, and 2020. 14#41tH CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council FROM: Mark C. Mills, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No. 2 Executive Summary for Fiscal Year Ended September 30, 2016 DATE: February 23, 2018 Attached for your information is the Annual Report of Tax Increment Reinvestment Zone No. 2, for the Year Ended September 30, 2016. 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 (NYTEX) and the Barnett property (Fountain Ridge development). 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 Tax Year 2015 (fiscal year 2016) was $280,435,292 for the City of NRH, and $303,218,119 for Tarrant County and Tarrant County Hospital District, and $303,239,119 for Tarrant County College. The District billed $3,543,344 to taxing jurisdictions in April 2016. The library project was completed and the new library opened in the spring of 2008. The project was completed within the original TIF No. 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 No. 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 No. 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 2016 report (see attached) includes TIF No. 2 revenues and expenditures for the year, and outstanding principal and interest as of September 30, 2016. Revenues projected over the life of the TI F will pay for the outstanding principal and interest and all other original project plan costs. 00 Mark C. Mills Director of Finance Attachment: Tax Increment Reinvestment Zone (TIRZ) No. 2 Annual Report- 2016 City of North Richland Hills Tax Increment Reinvestment Zone No.2 Annual Report Year Ended September 30, 2016 Amount&Source of Revenue in the Tax Increment Fund FY 2016: Property Tax Revenues Collected $ 3,515,026 Investment Income $ 91,299 Total Revenues in Fiscal Year 2016 $ 3,606,325 Amount and Purpose of Expenditures of the Fund FY 2016: Principal, Interest, Issuance&Paying Agent Payments on Certificate Indebtedness $ 2,146,045 Total Fund Expenditures in Fiscal Year 2016 $ 2,146,045 Principal&Interest due on outstanding indebtedness as of September 30, 2016: Principal Outstanding $ 18,145,000 Interest Outstanding $ 3,477,800 Total Principal &Interest Outstanding 9-30-2016 $ 21,622,800 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 2015 Value 2015 FY 2016 2016 City of North Richland Hills $40,577,462 $321,012,754 $280,435,292 $0.570000 $1,598,481 Tarrant County $40,577,462 $343,795,581 $303,218,119 $0.264000 $800,496 Tarrant County Hospital District $40,577,462 $343,795,581 $303,218,119 $0.227897 $691,025 Tarrant County College $40,577,462 $343,816,581 $303,239,119 $0.149500 $453,342 $3,543,344 Total billings outstanding $ (28,318) Taxes Collected FY 2016 $3,515,026 This report submitted by Mark C. Mills Director of Finance City of North Richland Hills, Texas Tax Increment Reinvestment Zone(TIRZ) No. 2 Annual Report-2016 14#41tH CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council FROM: Mark C. Mills, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No. 2 Executive Summary for Fiscal Year Ended September 30, 2017 DATE: February 23, 2018 Attached for your information is the Annual Report of Tax Increment Reinvestment Zone No. 2, for the Year Ended September 30, 2017. 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 (NYTEX) and the Barnett property (Fountain Ridge development). 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 Tax Year 2016 (fiscal year 2017) was $332,083,362 for the City of NRH, and $357,517,324 for Tarrant County and the Tarrant County Hospital District, and $357,517,324 for Tarrant County College. The District billed $4,133,207 to taxing jurisdictions in May 2017. The library project was completed and the new library opened in the spring of 2008. The project was completed within the original TIF No. 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 No. 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 No. 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 2017 report (see attached) includes TIF No. 2 revenues and expenditures for the year, and outstanding principal and interest as of September 30, 2017. Revenues projected over the life of the TIF will pay for the outstanding principal and interest and all other original project plan costs. 000o' 10/ � Mark C. Mills Director of Finance Attachment: Tax Increment Reinvestment Zone (TIRZ) No. 2 Annual Report- 2017 City of North Richland Hills Tax Increment Reinvestment Zone No.2 Annual Report Year Ended September 30, 2017 Amount&Source of Revenue in the Tax Increment Fund FY 2017: Property Tax Revenues Collected $ 4,104,396 Investment Income $ 87,368 Total Revenues in Fiscal Year 2016 $ 4,191,763 Amount and Purpose of Expenditures of the Fund FY 2016: Principal, Interest, Issuance&Paying Agent Payments on Certificate Indebtedness $ 2,346,287 Total Fund Expenditures in Fiscal Year 2016 $ 2,346,287 Principal Outstanding $ 16,405,000 Interest Outstanding $ 2,873,215 Total Principal &Interest Outstanding 9-30-2016 $ 19,278,215 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 2016 Value 2015 FY 2017 2017 City of North Richland Hills $40,577,462 $372,660,824 $332,083,362 $0.570000 $1,892,875 Tarrant County $40,577,462 $398,094,786 $357,517,324 $0.254000 $908,094 Tarrant County Hospital District $40,577,462 $398,108,786 $357,531,324 $0.227897 $814,803 Tarrant County College $40,577,462 $398,094,786 $357,517,324 $0.144730 $517,435 $4,133,207 Total billings outstanding $ (28,811) Taxes Collected FY 2016 $4,104,396 This report submitted by �y . /, Mark C. Mills Director of Finance City of North Richland Hills, Texas Tax Increment Reinvestment Zone(TIRZ) No. 2 Annual Report-2017 North Richland Hills Tax Increment Reinvestment Zone No. 2 Annual Report for the Period Ending September 30, 2018 yyrr v. II4 I I a M pppp {� 1 f � r r i u p l/ L r City of North Richland Hills Telephone: 817.427.6166 4301 City Point Drive Email: Finance@nrhtx.com North Richland Hills, TX 76180 Website: www.nrhtx.com Iq Rj"h 14 14#41tH CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council Board of Directors —Tax Increment Reinvestment Zone No. 2 FROM: Mark C. Mills, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No. 2 Executive Summary for Fiscal Year Ended September 30, 2018 DATE: August 21, 2019 Attached for your information is the Annual Report of Tax Increment Reinvestment Zone No. 2, for the Year Ended September 30, 2018. 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 were 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 (NYTEX) and the Barnett property (Fountain Ridge development). 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 taxable value in 2017 (fiscal year 2018) was $407,363,786 for the City of NRH, and $435,290,866 for Tarrant County, Hospital, and College.' The District billed $4,970,641 to taxing jurisdictions in June 2018. 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 visual, performing arts and technical teaching center on campus. The fiscal year 2018 report (see attached) includes TIF 2 revenues and expenditures for the year, and ' Based on the February 2018 TIF Account Summary Listing provided by Tarrant Appraisal District. Page 1 outstanding principal and interest as of September 30, 2018. Revenues projected over the life of the TIF will pay for the outstanding principal and interest and all other original project plan costs. Mark C. Mills Director of Finance Attachment: TIRZ No. 2 Annual Report FY 2018 Page 2 City of North Richland Hills Tax Increment Reinvestment Zone No.2 Annual Report Year Ended September 30, 2018 Amount&Source of Revenue in the Tax Increment Fund FY 2018: Property Tax Revenues Collected $ 4,930,544 Investment Income $ 99,730 Total Revenues in Fiscal Year 2018 $ 5,030,274 Amount and Purpose of Expenditures of the Fund FY 2018: Principal, Interest, Issuance&Paying Agent Payments on Certificate Indebtedness $ 2,291,946 Total Fund Expenditures in Fiscal Year 2018 $ 2,291,946 Principal&Interest due on outstanding indebtedness as of September 30, 2018: Principal Outstanding $ 14,660,000 Interest Outstanding $ 2,327,993 Total Principal &Interest Outstanding 9-30-2018 $ 16,987,993 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 2017 Value 2017 FY 2018 2018 City of North Richland Hills $40,020,188 $447,383,974 $407,363,786 $0.570000 $2,321,974 Tarrant County $40,355,588 $475,646,454 $435,290,866 $0.244000 $1,062,110 Tarrant County Hospital District $40,355,588 $475,646,454 $435,290,866 $0.224429 $976,919 Tarrant County College $40,355,588 $475,646,454 $435,290,866 $0.140060 $609,668 $4,970,671 Total billings outstanding $ (40,127) Taxes Collected FY 2018 $4,930,544 This report submitted by Mark C. Mills Director of Finance City of North Richland Hills, Texas Tax Increment Reinvestment Zone(TIRZ) No. 2 Annual Report-2018 Page 3 North Richland Hills Tax Increment Reinvestment Zone No. 2 Annual Report for the Period Ending September 30, 2019 (Amended) W m f l �. .�/ lip ✓ /. f 1 I f Y � 1 Y NV, V ql L / / i I J� City of North Richland Hills Telephone: 817.427.6166 4301 City Point Drive Email: mmills@nrhtx.com North Richland Hills, TX 76180 Website: www.nrhtx.com 14#41tH CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council Board of Directors —Tax Increment Reinvestment Zone No. 2 FROM: Mark C. Mills, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No. 2 Executive Summary for Fiscal Year Ended September 30, 2019 -Amended DATE: December 28, 2020 Attached for your information is the Annual Report of Tax Increment Reinvestment Zone No. 2, for the Year Ended September 30, 2019. 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 were 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 (NYTEX) and the Barnett property (Fountain Ridge development). 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 taxable value in tax year 2018 (fiscal year 2019) was $460,915,092 for the City of NRH, $493,725,481 for Tarrant County and the Hospital District, and$493,746,481 for Tarrant County College.' The District billed $5,562,438 to taxing jurisdictions in July 2019. 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 visual, performing arts and technical teaching center on campus. The fiscal year 2019 report (see attached) includes TIF 2 revenues and expenditures for the year, and 1 Based on the February 2019 TIF Account Summary Listing provided by Tarrant Appraisal District. outstanding principal and interest as of September 30, 2019. Revenues projected over the life of the TIF will pay for the outstanding principal and interest and all other original project plan costs. Mark C. Mills Director of Finance Attachment: TIRZ No. 2 Annual Report FY 2019 -Amended City of North Richland Hills Tax Increment Reinvestment Zone No.2 Annual Report(Amended) Year Ended September 30,2019 Amount&Source of Revenue in the Tax Increment Fund FY 2019: Original Change Amended Property Tax Revenues Collected $ 5,490,424 $ - $ 5,490,424 Investment Income $ 544,279 $ (147,911) $ 396,367 Total Revenues in Fiscal Year 2019 $ 6,034,703 $ (147,911) $ 5,886,791 Amount and Purpose of Expenditures of the Fund FY 2019: Principal, Interest, Issuance&Paying Agent Payments on Certificate Indebtedness $ 2,260,461 Total Fund Expenditures in Fiscal Year 2019 $ 2,260,461 Principal &Interest due on outstanding indebtedness as of September 30,2019: Principal Outstanding $ 12,920,000 Interest Outstanding $ 1,836,980 Total Principal &Interest Outstanding 9-30-2019 $ 14,756,980 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 Taxing Unit Appraised Value TY 2018 Value TY 2018 FY 2019 FY 2019 City of North Richland Hills $40,020,188 $500,935,280 $460,915,092 $0.570000 $2,627,216.02 Tarrant County $40,355,588 $534,081,069 $493,725,481 $0.234000 $1,155,317.63 Tarrant County Hospital District $40,355,588 $534,081,069 $493,725,481 $0.224429 $1,108,063.16 Tarrant County College $40,355,588 $534,102,069 $493,746,481 $0.136070 $671,840.84 $5,562,437.65 Total billings outstanding ($72,013.24) Taxes Collected FY 2019 $5,490,424.41 This report submitted by Mark C. Mills Director of Finance City of North Richland Hills,Texas Notes: FY:Fiscal Year TY:Tax Year ":Reported Investment Income included an additional fund not associated with the operation of TIF#2. Tax Increment Reinvestment Zone(TIRZ)No.2 Annual Report-2019(Amended) North Richland Hills Tax Increment Reinvestment Zone No. 2 Annual Report for the Period Ending September 30, 2020 W f l f 1 I f Y � 1 Y NV, V ql L / / i I J� City of North Richland Hills Telephone: 817.427.6166 4301 City Point Drive Email: mmills@nrhtx.com North Richland Hills, TX 76180 Website: www.nrhtx.com 14#41tH CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council Board of Directors —Tax Increment Reinvestment Zone No. 2 FROM: Mark C. Mills, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No. 2 Executive Summary for Fiscal Year Ended September 30, 2020 DATE: December 28, 2020 Attached for your information is the Annual Report of Tax Increment Reinvestment Zone No. 2, for the Year Ended September 30, 2020. 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 ("TCC"), 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 were 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 Center(Kohl's), Home Depot, Blue Line Ice (NYTEX) and the Barnett property (Fountain Ridge development). 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 taxable value in tax year 2019 (fiscal year 2020) was $509,026,716 for the City of NRH, $545,430,099 for Tarrant County and the Hospital District, and$545,458,099 for Tarrant County College.' The District billed $4,164,923 to taxing jurisdictions in June 2020. Tarrant County made a payment of $380,796.74, reaching their fixed contribution maximum of$10,499,734. Tarrant County Hospital District made a payment of $172,651.20, reaching their fixed contribution maximum of $9,235,788. Moving forward, TIF #2 will no longer bill these two entities. 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 1 Based on the February 2020 TIF Account Summary Listing provided by Tarrant Appraisal District. allow TCC to use TIF No. 2 money for a visual, performing arts and technical teaching center on campus. The fiscal year 2020 report (see attached) includes TIF 2 revenues and expenditures for the year, and outstanding principal and interest as of September 30, 2020. Revenues projected over the life of the TIF will pay for the outstanding principal and interest and all other original project plan costs. �Y Mark C. Mills Director of Finance Attachment: TIRZ No. 2 Annual Report FY 2020 City of North Richland Hills Tax Increment Reinvestment Zone No.2 Annual Report Year Ended September 30,2020 Amount&Source of Revenue in the Tax Increment Fund FY 2020: Property Tax Revenues Collected $ 4,164,923 111121 Investment Income $ 374,441 Total Revenues in Fiscal Year 2020 $ 4,539,364 Amount and Purpose of Expenditures of the Fund FY 2020: Principal, Interest, Issuance&Paying Agent Payments on Certificate Indebtedness $ 2,198,674 Total Fund Expenditures in Fiscal Year 2020 $ 2,198,674 Principal &Interest due on outstanding indebtedness as of September 30,2020: Principal Outstanding $ 11,185,000 Interest Outstanding $ 1,397,676 Total Principal &Interest Outstanding 9-30-2020 $ 12,582,676 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 Taxing Unit Appraised Value TY 2019 Value TY 2019 FY 2020 FY 2020 City of North Richland Hills $40,020,188 $549,046,904 $509,026,716 $0.570000 $2,901,452.28 Tarrant County $40,355,588 $585,785,687 $545,430,099 $0.234000 $380,796.74 Tarrant County Hospital District $40,355,588 $585,785,687 $545,430,099 $0.224429 $172,651.20 (2) Tarrant County College $40,355,588 $585,813,687 $545,458,099 $0.130170 $710,022.81 $4,164,923.03 Total billings outstanding $0.00 Taxes Collected FY 2020 $4,164,923.03 This report submitted by 011 Mark C. Mills Director of Finance City of North Richland Hills,Texas Notes: FY:Fiscal Year TY:Tax Year (1)-With a payment of$380,796.74 Tarrant County reached their defined maximum contribution of$10,449,734. (2)-With a payment of$172,651.20 Tarrant County Hospital District reached their defined maximum contribution of$9,235,788. Tax Increment Reinvestment Zone(TIRZ)No.2 Annual Report-2020 IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 2 MEMORANDUM FROM: The Office of the City Manager DATE: October 11, 2021 SUBJECT: Receive a status report regarding the project and financial status of Tax Increment Reinvestment Zone Number 2. PRESENTER: Mark C. Mills, Director of Finance SUMMARY: Staff will make a presentation regarding the project and financial status of Tax Increment Reinvestment Zone Number 2. This presentation will be for informational purposes and will not require any action by the Board. GENERAL DESCRIPTION: Tax Increment Reinvestment Zone Number 2 ("TIF 2") was created in 1999 to fund public improvements including the construction of the NRH Public Library, the NRH Centre, and a future Tarrant County College conference/performing arts center. At this time, the majority of the projects associated with TIF 2 are complete. The NRH Public Library opened in 2008. The NRH Centre, an 86,000-square-foot facility located adjacent to the NRH Public Library, opened in April 2012. While the conference / performing arts center project has not yet commenced, sufficient funding is currently available to cover the TIF's $8.2 million contribution to the project. Guidance regarding the future of TIF 2 is requested, but no formal decision is requested at this meeting. RECOMMENDATION: No action required at this time. IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 2 MEMORANDUM FROM: The Office of the City Manager DATE: October 11, 2021 SUBJECT: Receive notice from the Tarrant County College District that the District no longer plans to pursue the Performing Arts Center project that is included in the Tax Increment Reinvestment Zone Number 2 Project Plan. PRESENTER: Mark C. Mills, Director of Finance SUMMARY: The Tarrant County College District has provided notice that it no longer intends to pursue a Performing Arts Center within the boundaries of Tax Increment Reinvestment Zone Number 2. GENERAL DESCRIPTION: In February 2021 Eugene Giovannini, Chancellor of the Tarrant County College District ("the District"), provided notice to Mark Hindman, North Richland Hills City Manager, that the District no longer intends to pursue a Conference / Performing Arts Center at or near the Northeast Campus. The Performing Arts Center project is currently included in the TIF 2 Project Plan. A copy of this letter has been included as an attachment to this item. RECOMMENDATION: No action required. Tarrant County College District 1500 Houston Street•Fort Worth,Texas 76102-6524. 817-515-5201 Eugene Giovannini,Ed.D. Chancellor February 15, 2021 City of North Richland Hills Attn: Mark Hindman, City Manager 4301 City Point Drive North Richland Hills, Texas 76108 Dear Mr. Hindman: This is a follow-up to recent dialogue you have had with Tarrant County College's Chief Operating Officer, Susan Alanis. The District is no longer pursuing a Conference/Performing Arts Center at or near our Northeast Campus as originally contemplated by the North Richland Hills Tax Increment Reinvestment Zone#2 (TIRZ) Project and Financing Plan. We look forward to the City's evaluation and appropriate recommendations to the TIRZ Board regarding the future purpose and disposition of the funds that were earmarked for this purpose. Please feel free to contact me should you have any questions. Sincerely, Eugene Giovannini, Ed.D. Chancellor IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 2 MEMORANDUM FROM: The Office of the City Manager DATE: October 11, 2021 SUBJECT: Receive a presentation from representatives of the Artisan Theater requesting an amendment to the North Richland Hills Tax Increment Reinvestment Zone Number 2 Project Plan and potential allocation of funding for the construction of a theater for use by the Artisan Theater Company. PRESENTER: Mark C. Mills, Director of Finance SUMMARY: Representatives of the Artisan Theater have requested an opportunity to make a presentation to the Board of Directors regarding potential funding for the construction of a theater within North Richland Hills Tax Increment Reinvestment Zone Number 2. GENERAL DESCRIPTION: Artisan Productions, Inc., a 501(C)(3) non-profit organization, has requested an opportunity to make a presentation to the Tax Increment Reinvestment Zone Number 2 ("TIF 2") Board of Directors regarding the potential construction of a performing arts facility within TIF 2. The proposed location for this facility is 8851 Bud Jensen Drive; roughly 13 acres directly east of the NRH Centre. Representatives of the Artisan Theater will make a presentation and provide further detail on the proposed project. RECOMMENDATION: No action required. IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 2 MEMORANDUM FROM: The Office of the City Manager DATE: October 11, 2021 SUBJECT: Discuss and set a future meeting schedule of Tax Increment Reinvestment Zone Number 2. PRESENTER: Mark C. Mills, Director of Finance SUMMARY: Staff requests that the Board of Directors consider and discuss the future meeting schedule of Tax Increment Reinvestment Zone Number 2 ("TIF 2"). GENERAL DESCRIPTION: Staff requests that the Board of Directors consider and discuss the Board's future meeting schedule. The annual meeting of Tax Increment Reinvestment Zone Number 2 is currently anticipated for April 2022. This meeting would occur at North Richland Hills City Hall, prior to a regularly scheduled Council Meeting. If the Board agrees, the meeting would be scheduled on either Monday, April 11, 2022 or Monday, April 25, 2022. Staff also seeks direction on any additional meetings the Board may desire in order to receive additional information or take action on items that may be under consideration by the Board. RECOMMENDATION: Set a future meeting schedule of Tax Increment Reinvestment Zone Number 2.