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Home My WebLink AboutTIF3 2022-01-24 Agendas k4Ft, D HILLS CITY OF NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NO. 3 AGENDA 4301 CITY POINT DRIVE NORTH RICHLAND HILLS, TX 76180 MONDAY, JANUARY 24, 2022 REGULAR MEETING: 5:30 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 Number 3 Board on matters which are not scheduled for consideration by this Board or another City Board or Commission at a later date. In order to address the Tax Increment Reinvestment Zone Number 3 Board during citizens presentation, a Public Meeting Appearance Card must be completed and presented to the secretary prior to the start of the Board meeting. B.2 PUBLIC COMMENTS An opportunity for citizens to address the Tax Increment Reinvestment Zone Number 3 Board on matters which are scheduled on this agenda for consideration by the Board, but not scheduled as a public hearing. In order to address the Tax Increment Reinvestment Zone Number 3 Board during public comments, a Public Meeting Appearance Card must be completed and presented to the recording secretary prior to the start of the Board meeting. C. ACTION ITEMS C.1 Approve minutes of the October 28, 2019 Tax Increment Reinvestment Zone Number 3 Board Meeting. C.2 Consider the appointment of a Vice-Chair and Secretary for Tax Increment Reinvestment Zone Number 3. Monday, January 24, 2022 Tax Increment Reinvestment Zone No. 3 Agenda Page 1 of 2 C.3 Discuss and accept the Tax Increment Reinvestment Zone Number 3 Annual Report for 2021. D. ADJOURNMENT Certification I do hereby certify that the above notice of meeting of the North Richland Hills Tax Increment Reinvestment Zone Number 3 was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on Friday, January 21, 2022 by 3:00 PM. Traci Henderson Assistant City Secretary 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, January 24, 2022 Tax Increment Reinvestment Zone No. 3 Agenda Page 2 of 2 IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 MEMORANDUM FROM: The Office of the City Manager DATE: January 24, 2022 SUBJECT: Approve minutes of the October 28, 2019 Tax Increment Reinvestment Zone Number Three Board meeting. PRESENTER: Alicia Richardson, City Secretary GENERAL DESCRIPTION: The action minutes for the previous Board meeting are placed on the agenda for review and approval. Upon approval of the minutes, an electronic copy will be uploaded to the City's website. RECOMMENDATION: Approve minutes of the October 28, 2019 Tax Increment Reinvestment Zone Number Three Board meeting. MINUTES OF THE TAX INCREMENT REINVESTMENT ZONE NO. 3 OF THE CITY OF NORTH RICHLAND HILLS, TEXAS HELD IN THE CITY HALL 4301 CITY POINT DRIVE OCTOBER 28, 2019 REGULAR MEETING A. CALL TO ORDER Chairman Trevino called the meeting to order October 28, 2019 at 6.51 p.m. Present: Oscar Trevino Chairman, Place 8 Tito Rodriguez Board member, Place 1 Rita Wright Oujesky Board member, Place 2 Suzy Compton Board member, Place 3 Vacant Board member, Place 4 Mike Benton Board member, Place 5 Scott Turnage Board member, Place 6 Tim Welch Board member, Place 7 Vacant Board member, Place 9 Staff Members: Mark Hindman City Manager Alicia Richardson City Secretary Maleshia B. McGinnis City Attorney B. PUBLIC COMMENTS There were no requests to speak from the public. C. ACTION ITEMS C.1 APPROVE BYLAWS OF REINVESTMENT ZONE NUMBER THREE CITY OF NORTH RICHLAND HILLS, TEXAS (TAX INCREMENT REINVESTMENT ZONE). APPROVED Director of Economic Development Craig Hulse presented item. Mr. Hulse explained the TIF and action taken to date for the area designated as TIF No. 3. The Board serves in an advisory capacity to the City Council and consists of nine members, eight of which shall be appointed by City Council and one appointed by Tarrant County. Each board member will serve a term of two years. The proposed Bylaws are similar to the bylaws for TIF Nos. 1 and 2. October 28, 2019 Tax Increment Reinvestment Zone No. 3 Meeting Minutes Page 1 of 2 A MOTION WAS MADE BY BOARD MEMBER WRIGHT OUJESKY, SECONDED BY BOARD MEMBER TURNAGE TO APPROVE THE BYLAWS OF REINVESTMENT ZONE NUMBER THREE CITY OF NORTH RICHLAND HILLS, TEXAS (TAX INCREMENT REINVESTMENT ZONE). MOTION TO APPROVE CARRIED 7-0. C.2 APPROVE RESOLUTION NO. T2019-001OF REINVESTMENT ZONE NUMBER THREE, FINAL PROJECT AND FINANCE PLAN; MAKING CERTAIN FINDINGS; AND PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE. APPROVED Director of Economic Development Craig Hulse informed the Board the item before them this evening is to consider a resolution approving the Final Project and Finance Plan of Reinvestment Zone Number Three. The City Council, at its October 14, 2019 meeting, approved Ordinance No. 3617 designating Reinvestment Zone Number Three, which also included the creation of the Board of Directors and a Preliminary Project and Finance Plan. The Finance Project and Finance Plan presented tonight does not contain any substantial changes from the Preliminary Plan previously approved by City Council. A MOTION WAS MADE BY BOARD MEMBER WELCH, SECONDED BY BOARD MEMBER RODRIGUEZ TO APPROVE RESOLUTION NO. T2019-001 FOR REINVESTMENT ZONE NUMBER THREE, FINAL PROJECT AND FINANCE PLAN; MAKING CERTAIN FINDINGS; AND PROVIDING FOR AN IMMEDIATE EFFECTIVE DATE. MOTION TO APPROVE CARRIED 7-0. D. ADJOURNMENT Chairman Trevino adjourned the meeting at 7.00 p.m. Oscar Trevino, Chairman Alicia Richardson, City Secretary October 28, 2019 Tax Increment Reinvestment Zone No. 3 Meeting Minutes Page 2 of 2 IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 MEMORANDUM FROM: The Office of the City Manager DATE: January 24, 2022 SUBJECT: Consider the appointment of a Vice-Chair and Secretary for Tax Increment Reinvestment Zone Number 3. 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 3 ("TIF 3") is appointed by the North Richland Hills City Council for a one-year term. At the City Council's December 13, 2021 Council meeting, Mayor Oscar Trevino was appointed Chair for a one-year term ending December 31, 2022. In accordance with the bylaws for Tax Increment Reinvestment Zone Number 3, the Board of Directors is to appoint the Vice-Chair and Secretary. Each will serve a two-year term. As of this meeting, the Board has not yet appointed a Vice-Chair or Secretary and the positions are currently vacant. 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 times be open to inspection, and he or 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 member is named Secretary, a member of the City of North Richland Hills staff will be IrLp NOKTH KICHLAN HILLS 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 3. IrLp NOKTH KICHLAN HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 MEMORANDUM FROM: The Office of the City Manager DATE: January 24, 2022 SUBJECT: Discuss and accept the Tax Increment Reinvestment Zone Number 3 Annual Report for 2021. PRESENTER: Mark C. Mills, Director of Finance SUMMARY: The Tax Increment Reinvestment Zone is required to submit an annual report to the Board detailing its financial activities for the year. This report is also required to be submitted to the State of Texas. GENERAL DESCRIPTION: Each Tax Increment Reinvestment Zone is required to submit an annual report detailing its financial activities for the year. A copy of the 2021 Tax Increment Reinvestment Zone No. 3 Annual Report is attached for the Board's review. Following the presentation, staff will request that the Board vote to accept the annual report. RECOMMENDATION: Accept the Tax Increment Reinvestment Zone Number 3 Annual Report for 2021. North Richland Hills Tax Increment Reinvestment Zone No. 3 Annual Report for the Period Ending September 30, 2021 0 �r ar r 1 dro+fluHil Pity V r ri ri •X I J � a 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 Iq Rj'h' 14#41tH CITY OF NORTH RICHLAND HILLS MEMO TO: Mayor and City Council Board of Directors —Tax Increment Reinvestment Zone No. 3 FROM: Mark C. Mills, Director of Finance SUBJECT: Tax Increment Reinvestment Zone No. 3 Executive Summary for Fiscal Year Ended September 30, 2021 DATE: January 10, 2022 The Annual Report of Tax Increment Reinvestment Zone No. 3 for the Year Ended September 30, 2021 as been provided for your review and consideration. Description of TIF 3 Tax Increment Reinvestment Zone Number 3 ("TIF 3" or the "Zone") was created by the City of North Richland Hills (the "City") in 2019 through the passage of Ordinance 3617, under the authority of Chapter 311, Texas Tax Code, Tax Increment Financing Act, as amended (the "Act"). TIF 3 is a 20-year tax increment reinvestment zone that includes approximately 52.85 acres of land, expiring September 30, 2039. When the TI F was created, the property was zoned Non-Residential Planned Development (mixed use). At that time, the property was undeveloped and due to its size, location, and physical characteristics, development would require extensive public infrastructure that: (1) the City could not provide, and (2) would not be provided solely through private investment in the foreseeable future. The intent of the TI F is to facilitate such development or redevelopment by financing the costs of public works, public improvements, programs, and other projects benefiting the Zone, plus other costs incidental to those expenditures, all of which are authorized by the Act. The City envisions that the property will be developed to take full advantage of the opportunity to bring a quality master planned development to the City and Tarrant County and provide long-term economic benefits including, but not limited to, increased real property tax base for all taxing units. TIF 3 Proiects The proposed public improvements to be funded by the Zone include street, water, sanitary sewer, storm drainage, as well as associated soft costs. Design and construction of these improvements will be done in accordance with all applicable City standards and shall be inspected, approved, and accepted by the City. Participating Entities, Planned Contributions, and Assessed Values Two entities contribute to TIF 3: the City and Tarrant County (the "County"). The City has pledged 45% of its annual maintenance and operations ("M&O") tax rate, in an amount not to exceed $4,173,032 over the life of the Zone. The County has pledged 25% of its annual total tax rate, not to exceed $1,707,150. There is no bonded indebtedness issued by the City or the Zone pursuant to the Act contemplated at this time. On an annual basis and consistent with the PID's Service and Assessment Plan ("SAP"), TIF 3 revenue generate by the Improvement Zone A Assessed Property for the previous Tax Year shall be applied pro rata based on the outstanding assessment of each lot to reduce the principal and interest required for the Improvement Zone A Annual Installment, due January 31. The annual credit amount is updated each year in the Annual Service Plan Update as TIF 3 revenue is generated. Mark C. Mills Director of Finance Attachments: Attachment 1: Tax Increment Reinvestment Zone Number 3 Annual Report, Year Ending September 30, 2021 Attachment 2: Tax Increment Revenue Contribution By Year By Entity Attachment 3: PID Contributions and TIF Expenses By Year Attachment 1 CITY OF NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 ANNUAL REPORT FOR THE PERIOD ENDING SEPTEMBER 30, 2021 Amount&Source of Revenue in the Tax Increment Fund FY 2021: Property Tax Increment Revenue Collected $ 13,103.88 Total Revenues in Fiscal Year 2021 $ 13,103.88 Amount and Purpose of Expenditures of the Fund FY 2021: TIF 3 Annual Contribution to City Point PID $ - TIF 3 Expenses $ Total Fund Expenditures in Fiscal Year 2021 $ Captured Appraised Value shared by the Municipality&Other Taxing Entities and total amount of tax increments received ax increment Revenue Received Based on 1 Collections Difference City of North Richland Hills(') $6,348,296.00 $12,496,744.00 $6,148,448 $0.154625 $9,507.04 $9,507.04 $0.00 Tarrant County(2) $6,348,296.00 $12,496,744.00 $6,148,448 $0.058500 $3,596.84 $3,596.84 $0.00 $13,103.88 $13,103.88 $0.00 This report submitted by a Mark C.Mills Director of Finance City of North Richland Hills,Texas Notes: FY:Fiscal Year TY:Tax Year NRH Tax Rate for TIF#3 is 45%of its M&O Tax Rate for the year Tarrant County Tax Rate for TIF#3 is 25%of its Total Tax Rate for the year Tax Increment Reinvestment Zone Number 3 Annual Report-2021 Attachment 2 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 Tax Increment Revenue Contribution By Year By Entity For the Perioding Ending September 30, 2021 2019 2020 $0.00 $0.00 $0.00 2020 2021 $9,507.04 $3,596.84 $13,103.88 2021 2022 $0.00 2022 2023 $0.00 2023 2024 $0.00 2024 2025 $0.00 2025 2026 $0.00 2026 2027 $0.00 2027 2028 $0.00 2028 2029 $0.00 2029 2030 $0.00 2030 2031 $0.00 2031 2032 $0.00 2032 2033 $0.00 2033 2034 $0.00 2034 2035 $0.00 2035 2036 $0.00 2036 2037 $0.00 2037 2038 $0.00 2038 2039 $0.00 Contribution To Date: $9,507.04 $3,596.84 $13,103.88 Maximum Contribution: $4,173,032.00 $1,703,553.16 $1,707,150.00 Contribution Remaining: $4,163,524.96 $1,699,956.32 $1,694,046.12 Tax Increment Reinvestment Zone Number 3 Annual Report-2021 Attachment 3 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 PID Contribution &TIF Expenses By Year For the Perioding Ending September 30, 2021 2019 2020 $0.00 $0.00 $0.00 2020 2021 $0.00 $0.00 $0.00 (1) 2021 2022 $0.00 2022 2023 $0.00 2023 2024 $0.00 2024 2025 $0.00 2025 2026 $0.00 2026 2027 $0.00 2027 2028 $0.00 2028 2029 $0.00 2029 2030 $0.00 2030 2031 $0.00 2031 2032 $0.00 2032 2033 $0.00 2033 2034 $0.00 2034 2035 $0.00 2035 2036 $0.00 2036 2037 $0.00 2037 2038 $0.00 2038 2039 $0.00 To Date: $0.00 $0.00 $0.00 Notes: ('): FY21 PID Contribution ($12,817.27)and TIF Expenses ($286.40) made after September 30, 2021 will be reflected on the FY22 Annual Report. Tax Increment Reinvestment Zone Number 3 Annual Report- 2021