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Home My WebLink AboutTIF3 2024-11-11 Agendas t4RH NOKTH KICH�AND HILL CITY OF NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NO. 3 AGENDA 4301 CITY POINT DRIVE NORTH RICHLAND HILLS, TX 76180 MONDAY, NOVEMBER 11, 2024 REGULAR MEETING: 5:00 PM Held in the Council Workroom A. CALL TO ORDER B. PUBLIC COMMENTS An opportunity for citizens to address the Tax Increment Reinvestment Zone No. 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 No. 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 Tax Increment Reinvestment Zone No. 3 meeting. C. ACTION ITEMS C.1 Approve minutes of the November 13, 03 Tax Increment Reinvestment Zone No. 3 Board meeting. C.2 Review and accept the Tax Increment Reinvestment Zone No. 3 Annual Report for 2024. D. ADJOURNMENT Certification I do hereby certify that the above notice of meeting of the North Richland Hills Tax Increment Reinvestment Zone No. 3 was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on Friday, November 8, 2024 by 3:00 PM. Monday, November 11, 2024 Tax Increment Reinvestment Zone No. 3 Agenda Page 1 of 2 Alicia Richardson City Secretary/Chief Governance Officer 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, November 11, 2024 Tax Increment Reinvestment Zone No. 3 Agenda Page 2 of 2 r4RH NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 MEMORANDUM FROM: The Office of the City Manager DATE: November 14, 2024 SUBJECT: Approve minutes of the November 13, 2023 Tax Increment Reinvestment Zone No. 3 Board meeting. PRESENTER: Jay K. Patel, Director of Finance 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 November 13, 2023 Tax Increment Reinvestment Zone No. 3 Board meeting. MINUTES CITY OF NORTH RICHLAND HILLS, TEXAS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 BOARD OF DIRECTORS MEETING 4301 CITY POINT DRIVE — COMMUNITY ROOM NORTH RICHLAND HILLS, TX 76180 MONDAY, NOVEMBER 13, 2023 5:30 P.M. Present: • Oscar Trevino, Chair Mayor, North Richland Hills • Scott Turnage, Vice-Chair Councilmember, North Richland Hills • Mason Orr, Secretary Councilmember, North Richland Hills • Tito Rodriguez Councilmember, North Richland Hills • Rita Wright Oujesky Councilmember, North Richland Hills • Suzy Compton Councilmember, North Richland Hills • Blake Vaughn Councilmember, North Richland Hills • Kelvin Deupree Councilmember, North Richland Hills • Kathryn Rotter Executive Administrator Programs and Outreach, Office of Gary Fickes, Northeast Sub Courthouse, Commissioner Precinct #3 Others Present: • Mark Hindman City Manager • Paulette Hartman Deputy City Manager • Maleshia McGinnis City Attorney • Mark Mills Director of Finance • Glenn Mizell Assistant Director of Finance • Trudy Lewis Director of Budget • Karen Manilla Assistant City Manager • Caroline Waggoner Assistant City Manager • Thomas McMillian Assistant City Attorney • Mike Young Police Chief • Clayton Comstock Director of Planning Members Absent: 0 None A. CALL TO ORDER Chairman Oscar Trevino called the meeting to order at 5.30 p.m. B.2 PUBLIC COMMENTS No Public Comments were made or received at this time. CA APPROVE MINUTES OF THE JANUARY 24, 2022 TAX INCREMENT REINVESTMENT ZONE NO. 3 BOARD MEETING Board Member Suzy Compton moved to approve the minutes. Board Member Tito Rodriguez seconded the motion. The motion to approve carried 9-0. C.2 DISCUSS AND ACCEPT THE NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 ANNUAL REPORT FOR 2023. Director of Finance Mark Mills made a brief presentation on the Annual Report of the TIF #3 for 2023. Each Tax Increment Reinvestment Zone is required to submit an annual report, to its Board and to the State, detailing its financial activities for the year. A summary of the financial report for the year is shown below- Property Tax Increment Revenue Collected $28,827.78 Total $28,827.78 2019 2020 $0.00 $0.00 $0.00 2020 2021 $9,507.04 $3,596.84 $13,103.88 2021 2022 $10,442.43 $3,808.10 $14,250.53 2022 2023 $21,307.00 $7,520.78 $28,827.78 TIF 3 Annual Contribution to City Point PID $14,247.98 TIF 3 Expenditures $744.17 Total $14,992.15 FY 2023 Value Increment (Taxable Value) Taxable Value $19,964,300 Base Value $6,348,296 Taxable Value Increment $13,616,004 After some discussion on the current status of the City Point development, Board Member Rita Wright Oujesky moved to accept the Annual Report for North Richland Hills Tax Increment Reinvestment Zone Number 3 for the period ending September 30, 2023. Member Kelvin Deupree seconded the motion, which was approved 9-0. C.3 CONSIDER THE APPOINTMENT OF A VICE-CHAIR AND SECRETARY FO THE TAX INCREMENT REINVESTMENT ZONE NUMBER 3, EACH TO SERVE TWO-YEAR TERMS BEGINNING JANUARY 1, 2024, AND ENDING DECEMBER 31, 2025. Board Secretary Mason Orr was nominated to serve a two-year term as Board Vice- Chair and Kelvin Deupree was nominated to serve a two-year term as Board Secretary. Board Member Suzy Compton moved to accept the slate of nominees and Board Member Tito Rodriguez seconded the motion, which was approved 9-0. D. ADJOURNMENT Chair Oscar Trevino adjourned the meeting at 5.39 p.m. MRH NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 MEMORANDUM FROM: The Office of the City Manager DATE: November 11, 2024 SUBJECT: Review and accept the North Richland Hills Tax Increment Reinvestment Zone No. 3 Annual Report for 2024. PRESENTER: Jay K. Patel, 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. A copy of the 2024 Tax Increment Reinvestment Zone No. 3 Annual Report has been attached for the Board's review. Following the presentation, staff will request that the Board vote to accept the annual report. RECOMMENDATION: Accept the North Richland Hills Tax Increment Reinvestment Zone No. 3 Annual Report for 2024. North Richland Hills Tax Increment Reinvestment Zone No. 3 Annual Report for the Period Ending September 30, 2024 r Il/ Y aril F IccliCal City II r IIWum�th HIIIIs i i r � 1 i � rill lar r• I lr l City of North Richland Hills Telephone: 817.427.6167 4301 City Point Drive Email: jpatel@nrhtx.com North Richland Hills, TX 76180 Website: www.nrhtx.com I q Rh H Table of Contents ExecutiveSummary..............................................................................................................3 Annual Report for the Period Ending September 30, 2024....................................................5 Tax Increment Revenue Contribution By Year By Entity .......................................................6 PI D Contributions and TI F Expenses By Year.......................................................................7 Captured Appraised Value By Year.......................................................................................8 TI F Expenses Detail By Year................................................................................................9 MitH CITY OF NORTH RICHLAND HILLS MEMO TO: Board of Directors —Tax Increment Reinvestment Zone Number 3 FROM: Jay K. Patel, Director of Finance SUBJECT: North Richland Hills Tax Increment Reinvestment Zone Number 3 Executive Summary for Fiscal Year Ended September 30, 2024 DATE: November 11, 2024 The Annual Report of Tax Increment Reinvestment Zone No. 3 for the Year Ended September 30, 2024 is provided for your review and consideration. Description of TIF 3 North Richland Hills 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 includes approximately 52.85 acres of land and expires September 30, 2039. When TIF 3 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 TIF 3 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. North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2023 Participatinq 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 City Point Public Improvement District ("PID") Service and Assessment Plan ("SAP"), TIF 3 revenue generated 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 and Assessment Plan Update as TIF 3 revenue is generated. City Point Proiect Status and Build-Out Forecast Planned for a 6-year build-out taking place between FY21 and FY26, City Point is now projected to take approximately 71/ to complete. Two unforeseen factors came slowed the pace of development and, specifically, new home sales. First, there were the labor and supply chain issues during and after the global pandemic. For example, lumber became scarce while costs skyrocketed to untenable levels. Second was the increase in interest rates and home prices that began in early 2022, prompting many would-be home buyers to delay their efforts. While rates remain elevated, would-be home buyers have now come to accept the new environment while City Point builders recently began to offer attractive rate discounts. While this report reflects a taxable value of $29.8 million for tax year 2023, it does not include new development during calendar year 2023 that was captured in tax year 2024 for the first time. We now know that tax year 2024 will exceed $100 million in taxable value from the addition of approximately 80 new homes and a partially constructed The Delegate, a 352-unit multi-family project that recently was approved for occupancy. As of October 2024, another 117 single-family home permits have been issued, which will start to appear on the tax year 2025 roll. In sum, single-family residential and commercial are approximately 11/ behind original pace, while the multi-family was delivered 1-year later than originally planned. Currently in FY25, we expect City Point to reach build-out at some point during FY28. J 9 6 2�(, J K. Mtel Director of Finance North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2023 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 Tax Increment Revenue Contribution By Year By Entity For the Perioding Ending September 30, 2024 Amount & Source of Revenue in the Tax Increment Fund FY 2024: Property Tax Increment Revenue Collected $44,811.48 Total Revenues in Fiscal Year 2024: $44,811.48 Amount and Purpose of Expenditures of the Fund FY 2024: TIF 3 Annual Contribution to City Point PID $19,503.20 TIF 3 Expenses $352.93 Total Fund Expenditures in Fiscal Year 2024: $19,856.13 Captured Appraised Value by Taxing Entity and Total Amount of Tax Increment Revenue Taxing Unit Tax Year Fiscal Year City of NRH Tarrant County Taxable Value 2023 2024 $29,872,943 $29,990,758 Base Year Appraised Value 2019 2020 $6,348,296 $6,348,296 Captured Increment Value 2023 2024 $23,524,647 $23,642,462 Captured Increment Value 2023 2024 $23,524,647 $23,642,462 Tax Rate Per$100 of Valuation (1)(2) 2023 2024 $0.141112 $0.048625 Calculated Tax Increment Revenue (100%) 2023 2024 $33,196.10 $11,496.15 Tax Increment Revenue Received 2023 2024 $33,362.43 $11,449.05 Calculated Tax Increment Revenue (100%) 2023 2024 $33,196.10 $11,496.15 Difference $166.33 ($47.10) This report submitted by : loa&�7 Jay . P4Wel Director of Finance City of North Richland Hills, Texas Notes: ('): NRH Tax Rate for TIF#3 is 45% of its M&O Tax Rate for the year (2): Tarrant County Tax Rate for TIF#3 is 25% of its Total Tax Rate for the year North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2023 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 Tax Increment Revenue Contribution By Year By Entity For the Perioding Ending September 30, 2023 2019 2020 $0.00 $0.00 $0.00 2020 2021 $9,507.04 $3,596.84 $13,103.88 2021 2022 $10,442.43 $3,808.10 $14,250.53 2022 2023 1 $21 ,307.00 $7,520.78 $28,827.78 2023 2024 $33,362.43 $11,449.05 $44,811.48 Contributions to Date: $74,618.90 $26,374.77 $100,993.67 Maximum Contribution: $4,173,032.00 $1,707,150.00 $5,880,182.00 Contribution Remaining ($): $4,098,413.10 $1,680,775.23 $5,779,188.33 Contribution Remaining (%): 98.2% 98.5% 98.3% North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2023 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 PID Contribution & TIF Expenses By Year For the Perioding Ending September 30, 2024 IIIIIIV S mf IIIIIIIII „mm 2019 2020 $0.00 $0.00 $0.00 2020 2021 $0.00 $0.00 $0.00 2021 2022 $12,817.27 $286.60 $13,103.87 2022 2023 $14,247.98 $744.17 $14,992.15 2023 1 2024 $19,503.201 $352.93 $19,856.13 To Date: $46,568.45 $1 ,383.70 $47,952.15 North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2023 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 Captured Value By Year For the Perioding Ending September 30, 2024 2019 Base Value: $6,348,296 ZI 2020 2021 $12,496,744 $6,148,448 2021 2022 $13,000,000 $6,651,704 2022 2023 $19,964,300 $13,616,004 2023 2024 $29,872,943 $23,524,647 Annual TIF Account Summary Listing(February) North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2023 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 TIF Expenses Detail By Year For the Perioding Ending September 30, 2024 2022 P3 Works 1679 $231.25 2022 P3 Works 1999 $55.35 FY2022 Sub-Total. $286.60 2023 P3 Works 4839 $46.25 2023 P3 Works 5050 $138.75 2023 P3 Works 5263 $13.33 2023 P3 Works 5743 $172.50 2023 P3 Works 6211 $92.50 2023 P3 Works 8350 $61.68 2023 P3 Works 8719 $219.16 FY2023 Sub-Total. $744.17 2024 P3 Works 12348 $352.93 FY2024 Sub-Total. $352.93 TIF Expenses To Date: $1,383.70 North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2023