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Home My WebLink AboutTIF2 2022-01-24 Minutes MINUTES CITY OF NORTH RICHLAND HILLS, TEXAS TAX INCREMENTREINVESTMENT ZONE NO. 2 BOARD OF DIRECTORS MEETING 4301 CITY POINT DRIVE – COMMUNITY ROOM NORTH RICHLAND HILLS, TX 76180 MONDAY, JANUARY 24, 2022 5:00 P.M. Present: Mayor, North Richland Hills Oscar Trevino, Chair Councilmember, North Richland Hills Mason Orr Councilmember, North Richland Hills SuzyCompton, Vice-Chair Councilmember, North Richland Hills Rita Wright Oujesky, Secretary Councilmember, North Richland Hills Scott Turnage Councilmember, North Richland Hills Tito Rodriguez Precinct Administrator for Commission Gary Fickes, Rebecca Barksdale Northeast Sub Courthouse, Precinct #3 Chief Operating Officer, Tarrant County College Susan Alanis Absent: Vice President Chief Innovation & Transformation Mark Hallman Officer, Tarrant County Hospital District, Others Present: Councilmember Kelvin Deupree Councilmember Mason Orr City Manager Mark Hindman Deputy City Manager Paulette Hartman Assistant City Manager Karen Manila City Attorney Maleshia McGinnis Director of Finance Mark Mills Assistant Director of Finance Glenn Mizell Director of Economic Development Craig Hulse Director of Public Safety Jimmy Perdue A. CALL TO ORDER Chairman Oscar Trevino called the meeting to order at 5:00 p.m. B.1 CITZEN PRESENTATION No Citizen Presentations were made at this time. B.2 PUBLIC COMMENTS No Citizen Comments were made at this time. C.1 APPROVE MINUTES OF THE OCTOBER 11, 2021 TAX INCREMENT REINVESTMENT ZONE NO. 2 BOARD MEETING Scott Turnage moved to approve the minutes. Tito Rodriguez seconded the motion. The motion to approve carried 8-0. C.2 DISCUSS AND ACCEPT TAX INCREMENT REINVESTMENT ZONE NO. 2 ANNUAL REPORT FOR 2021 Director of Finance Mark Mills made a brief presentation on the annual reports for the fiscal year ending September 30, 2021. For the year, the amount and source of revenue was presented along with the corresponding amount and purpose of the associated expenditures. These amounts are show in the table below: Revenues Property Tax Increment Revenue Collected$ 3,914,656 Investment Income$ 20,175 Total3,934,831$ Expenditures Principal, Interest, Issuaance & Paying Agent$ 2,108,269 Total2,108,269$ As of September 30, 2021, the outstanding principal and interest due on indebtedness are shown in the table below: Outstanding Indebtedness Outstanding Principal$ 9,460,000 Outstanding Interest$ 1,015,716 Total10,475,716$ Following the presentation, the Board had an opportunity to ask questions and there wasno discussion. Suzy Compton moved to accept the TIF No. 2 Annual Report for the year ending September 30, 2021. Rita Wright Oujesky seconded the motion. The motion was 8-0. C.3 CONSIDER A RECOMMENDATION TO AMEND THE NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 2 PROJECT PLAN Director of Finance Mark Mills made a brief presentation on the status of the TIF # 2 Project Plan as amended in 2015. The original project plan included $8.2 million for a planned Conference Center. The project plan was amended in 2015 to change the planned Conference Center project to a Visual, Technical, and Performing Arts Center to be located on the Tarrant County College (“TCC”) Northeast Campus. TCC previously provided notice that it no longer intends to pursue a Performing Arts Center at its Northeast Campus. At the October 11, 2021 Board Meeting, Artisan Center Theater made a presentation to the Board for a theater located within the TIF 2 District utilizing the funds currently allocated for the Performing Arts Center. Based on questions and comments from Board members, staff is recommending no action be taken on the request from the Artisan Theater Center. Staff recommends that the TIF 2 Project Plan be amended to remove references to and costs associated with the Conference Center and the TCC Visual, Technical, and Performing Arts Center. With the removal of this project from the plan, all remaining projects located within TIF 2 are complete. Following the presentation and during the period for Board discussions, Chair Oscar Trevino made the following statement – “Several months ago, the City of NRH was approached with a request by representatives of the Artisan Theater regarding the use of the $8.2 million that was earmarked for TCC to construct a performing arts center within TIF 2. Prior to bringing this issue before the TIF Board, the City performed some due diligence on this proposal. Following several meetings, the City agreed to place their proposal on the agenda for the October 11, 2021 TIF 2 Board meeting. Representatives from the Artisan Theater made a brief presentation to the TIF Board at this meeting. Based on the information that the City had from the October 11, 2021 presentation, information presented at previous meetings and further evaluation of the materials they submitted relating to their proposal, I believe there are too many questions remaining to move forward with consideration of construction a new Artisan Theater facility in Home Town utilizing the Performing Arts Center funds. From my perspective the Artisan project is simply too different from the Performing Arts Center project to be swapped for this project without significant public input and more financial information from the representatives of the Artisan Theater. The Artisan Theater is not comparable to the Performing Arts Center in terms of size, public benefit, economic impact, and most importantly, public ownership. I believe that we need to look further down the road for a way to enhance cultural arts in the NRH and Northeast Tarrant County area, including performing arts such as the Artisan provides, but I do not believe that TIF 2 is the appropriate mechanism. Therefore, I recommend that we take no action on the proposal from the Artisan Theater and that we move forward with closing of TIF 2 and the redistribution of all remaining funds.” Following Chair Trevino’s statement, the Board had no further discussion. Rita Wright Oujesky moved to amend the TIF No. 2 Project Plan by removing all references to a planned Conference Center, or Visual, Technical, and Performing Arts Center to be located on the TCC Northeast Campus. Mason Orr seconded the motion. The motion was approved 8-0. C.4 CONSIDER A RECOMMENDATION TO AMEND THE NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 2 FINANCE PLAN. Director of Finance Mark Mills made a brief presentation on the status of the TIF # 2 Finance Plan. The original project plan included $8.2 million for a planned Conference Center and the project plan was amended in 2015 to change the planned Conference Center project to a Performing Arts Center project. The project plan has now been amended by removing the planned Conference Center / Performing Arts Center project. In conjunction with the Project Plan amendment, staff recommends the Board consider an amendment to the TIF 2 Finance Plan, removing references and costs associated with a Conference Center and/or Performing Arts Center. With the removal of this project from the TIF 2 Project Plan and TIF 2 Finance Plan, all projects associated with TIF 2 are now complete. Following the presentation, the Board had an opportunity to ask questions. There wasno discussion. Scott Turnagemoved to amend the TIF 2 Finance Plan by removing all references and costs related to a planned Conference Center and Visual, Technical, and Performing Arts Center to be located on the Tarrant CountyCollege Northeast Campus. Susan Alanis seconded the motion, which was approved 8-0. C.5 RECEIVE A REPORT REGARDING THE PROJECT AND FINANCIAL STATUS OF NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 2, CONSIDER RECOMMENDATIONS PERTAINING TO THE CLOSURE OF THE ZONE, AND RECOMMEND THE NORTH RICHLAND HILLS CITY COUNCIL TAKE ACTION TO CLOSE THE ZONE. Director of Finance Mark Mills made a presentation on the project and financial statusof TIF No. 2. With the removal of the Performing Arts Center from the plans, the projects within the zone are complete. NRH Public Library opened in 2008 $10.0 million NRH Centre opened in 2012 $21.9 million Developer Contributions $14.4 million With the completion of all projects associated with TIF 2, the estimated final distribution, contingent upon the cost of defeasance and final interest income allocation, shall include: Current Balance$ 26,158,628.80 Less: February 2022 Debt Payment$ (1,905,973.50) Less: Estimated Cost of Defeasance$ (7,869,538.76) Sub-Total(9,775,512.26)$ Estimated Remaining Balance$ 16,383,116.54 TIF 2 achieved full funding after receipt of the 2020 contributions from the participating entities. Full funding of TIF 2’s obligations occurred after receipt of the 2020 payments from the participating entities. TIF 2 remained open while an alternative performing arts center project was considered and this resulted in 2021 tax increment contributions by participating entities. Because the County and Hospital reached their maximum contribution in 2020, not all entities contributed in 2021. Since full funding all of TIF 2 obligations occurred in 2020, Staff recommends a distribution of 2021 receipts back to each entity based on their percentage of the total 2021 contribution as shown below: 2021 % of 2021 2021 EntityContributionsContributionsAllocation NRH$ 3,146,530.4580.38%3,146,530.45$ County$ -0.00%$ - College768,125.60$ 19.62%768,125.60$ Hospital$ -0.00%$ - $ 3,914,656.05100.00%3,914,656.05$ Upon completion of TIF 2 debt defeasement, the remaining funds not required for debt obligations of TIF 2 would be distributed based on each entity’s tax increment contribution through 2020. The remaining funds are currently estimated to be $12,468,460.49, contingent upon defeasement cost and final interest allocations. The estimated distribution of remaining funds is shown below: Contributions % of Estimated Entitythru 2020Contributions Distribution NRH$23,907,763.9647.84%$5,964,911.50 County$10,449,734.0020.91%$2,607,155.09 College$6,379,801.1812.77%$1,592,222.40 Hospital$9,235,788.0118.48%$2,304,171.50 $49,973,087.15100.00%$12,468,460.49 Following the presentation, the Board had an opportunity to ask further questions and there was no discussion. Rita Wright Oujesky made a motion to recommend the North Richland Hills City Council take action to close North Richland Hills Tax Increment Reinvestment Zone Number 2 and accept the staff recommended methodology for the final distribution of funds.Suzy Compton seconded the motion. Chair Oscar Trevino expressed appreciation to all of the partner entities for participating in the TIF 2 and oversaw the tremendous success it has been. Suzy Compton commented that the zone was being closed a number of years early. The motion was approved 8-0. D. ADJOURNMENT Chair Trevino adjourned the meeting at 5:21 p.m.