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Home My WebLink AboutTIF3 2025-12-08 Agendas (2) t4RH CITY OF NORTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NO. 3 AGENDA 4301 CITY POINT DRIVE NORTH RICHLAND HILLS, TX 76180 MONDAY, DECEMBER 8, 2025 REGULAR MEETING: 4:30 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 11 , 2024 Tax Increment Reinvestment Zone No. 3 Board meeting. Attachments: Memorandum Minutes C.2 Consider the appointment of the Vice-Chair and Secretary for the Tax Reinvestment Zone Number 3, each to serve two-year terms beginning January 1, 2026 and ending December 31 , 2027. Attachments: Memorandum Monday, December 8, 2025 Tax Increment Reinvestment Zone No. 3 Agenda Page 1 of 2 C.3 Review and accept the North Richland Hills Tax Increment Reinvestment Zone No. 3 Annual Report for 2025. Attachments: Memorandum 2025 TIF 3 Annual Report D. 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 December 2, 2025 by 4:00 PM. 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, December 8, 2025 Tax Increment Reinvestment Zone No. 3 Agenda Page 2 of 2 I r*4 R NORTH KICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 MEMORANDUM FROM: The Office of the City Manager DATE: December 8, 2025 SUBJECT: Approve minutes of the November 11, 2024 Tax Increment Reinvestment Zone No. 3 Board meeting. PRESENTER: Trudy J. Lewis, Assistant City Manager 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 11, 2024 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 NORTH RICHLAND HILLS, TX 76180 MONDAY, NOVEMBER 11, 2024 5:00 P.M. Present. • Jack McCarty, Chair Mayor, North Richland Hills • Kelvin Deupree, Secretary Councilmember, North Richland Hills • Tito Rodriquez Councilmember, North Richland Hills • Ricky Rodriguez Councilmember, North Richland Hills • Suzy Compton Councilmember, North Richland Hills • Matt Blake Councilmember, North Richland Hills • Blake Vaughn Councilmember, North Richland Hills • Russ Mitchell Councilmember, North Richland Hills • Kathryn Rotter Executive Administrator Programs and Outreach, Office of Gary Fickes, Northeast Sub Courthouse, Commissioner Precinct #3 Others Present. • Paulette Hartman City Manager • Alicia Richardson City Secretary • Cara White City Attorney • Jay Patel Director of Finance • Craig Hulse Director of Economic Development • Stefanie Martinez Director of Neighborhood Services • Trudy Lewis Assistant City Manager • Caroline Waggoner Assistant City Manager • Mary Peters Communications Director • Boe Blankenship Public Works Director Members Absent. • None A. CALL TO ORDER Chairman Jack McCarty called the meeting to order at 5.00 p.m. B. PUBLIC COMMENTS No Public Comments were made or received at this time. C.1 APPROVE MINUTES OF THE NOVEMBER 13, 2023 TAX INCREMENT REINVESTMENT ZONE NO. 3 BOARD MEETING Board Member Suzy Compton moved to approve the minutes. Board Member Russ Mitchell 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 2024. Director of Finance Jay Patel made a brief presentation on the Annual Report of the TIF #3 for 2024. 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- TAX INCREMENT REINVESTMENT ZONE NUMBER 3 Tax Increment Revenue Contribution By Year By Entity For the Perioding IEndi�ng September 30, 2024 Amount& Source of Revenue in the Tax Increment Fund F'Y 2024: Property Tax Increment Revenue Collllected $44,811.48 Total Revenues in Fiscal Yeah 2024: $44,8111.48 Amount and Purpose of Expenditures of the Fund FY 2024: TIIF 3 Annual Contribution to City Point PID $19,503.20 TIIF 3 Expenses $352.93 Total Fund Expenditures in Fiscal Year 2024: $119,888.13 Captured Appraised Value by Taxing Entity and Total Amount of Tax Increment Revenue Taxing Unit Tax Year Fiscal Year CIt of NRR Tarrant.Count Taxable Value 2023 2024 $29,872,943 $29,990,758 Base Year Appraised Value 2019 2020 $6,348,296 $6,348,296 Captured Increment V61ue 2023 2024 $23,524,647 $23,642,462 Economic Development Director Craig Hulse presented information regarding the status of projects included in the zone. After some discussion on the current status of the City Point development, Board Member Blake Vaughn moved to accept the Annual Report for North Richland Hills Tax Increment Reinvestment Zone Number 3 for the period ending September 30, 2024. Member Tito Rodriquez seconded the motion, which was approved 9-0. D. ADJOURNMENT Chair Jack McCarty adjourned the meeting at 5.23 p.m. k4FtH 01kTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 MEMORANDUM FROM: The Office of the City Manager DATE: December 8, 2025 SUBJECT: Consider the appointment of the Vice-Chair and Secretary for the Tax Reinvestment Zone Number 3, each to serve two-year terms beginning January 1, 2026, and ending December 31, 2027. PRESENTER: Trudy J. Lewis, Assistant City Manager SUMMARY: The Board of Directors is asked to appoint a Vice-Chair and Secretary. GENERAL DESCRIPTION: In accordance with the Bylaws for the Tax Increment Reinvestment Zone Number 3, the Board of Directors is to appoint the officers for Vice-Chairperson ("the Vice-Chair"), and Secretary. Each will serve a two-year term. Mason Orr was appointed Vice-Chair and Kelvin Deupree was appointed Secretary at the November 13, 2023, TIF 3 Board Meeting. The Vice-Chair shall be a member of the Board, shall have such powers and duties as may be assigned by 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 director, all of which shall at all reasonable times 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 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 in responsible for providing notice of meetings and preparing meeting agendas. The term of these appointments would be for a period of two years, beginning on January 1, 2026 and concluding on December 31, 2027. RECOMMENDATION: Appoint a Vice-Chair and Secretary for the Tax Increment Reinvestment Zone Number 3, each to serve two-year terms beginning January 1, 2026, and ending December 31, 2027. k4FtH OItTH RICHLAND HILLS TAX INCREMENT REINVESTMENT ZONE NUMBER 3 MEMORANDUM FROM: The Office of the City Manager DATE: December 8, 2025 SUBJECT: Review and accept the North Richland Hills Tax Increment Reinvestment Zone No. 3 Annual Report for 2025. PRESENTER: Trudy J. Lewis, Assistant City Manager 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 2025 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 2025. North Richland Hills Tax Increment Reinvestment Zone No. 3 Annual Report for the Period Ending September 30, 2025 I city v 9 a lr r w �L r w t I 1 City of North Richland Hills Telephone: 817.427.6005 4301 City Point Drive Email: tjlewis@nrhtx.com North Richland Hills, TX 76180 Website: www.nrhtx.com Iq Rj'h' Table of Contents ExecutiveSummary ..............................................................................................................3 Annual Report for the Period Ending September 30, 2025.....................................................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 k4ltH CITY OF NORTH RICHLAND HILLS MEMO TO: Board of Directors— Tax Increment Reinvestment Zone Number 3 FROM: Trudy J. Lewis- Assistant City Manager SUBJECT: North Richland Hills Tax Increment Reinvestment Zone Number 3 Executive Summary for Fiscal Year Ended September 30, 2025 DATE: December 8, 2025 The Annual Report of Tax Increment Reinvestment Zone No. 3 for the Year Ended September 30, 2025 is provided for your review and consideration. 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 requiring 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 purpose of TIF 3 is to support development by financing public works, improvements, programs, and other projects that benefit the Zone, along with related costs authorized by the Act. Without TIF 3, the property would not have been able to fully capitalize on the opportunity to deliver a high-quality, master-planned development to the City and Tarrant County, resulting in long-term economic benefits, including an 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 30,2025 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 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 projected to take approximately 7'/2 to complete. Two unforeseen factors impacted 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$95.7 million for tax year 2024, it does not include new development captured for the first time in tax year 2025. We now know that tax year 2025 will be introducing another $64 million in additional taxable value from 144 new homes, exceeding $160 million in value for the entire district, a 67% year over year increase. In addition, another 117 single-family home permits have been issued so far in calendar year 2025, most of which will appear on the future 2026 tax roll. Taken together, the accelerated pace of construction has allowed single-family to nearly align with the original six-year timeline. On the commercial side, construction remains roughly 1.5 years behind schedule but is showing signs of progress as we near the completion of the first commercial phase and the beginning of the hotel project. In sum, we expect City Point to reach full build-out sometime during FY28. Trud J. Lewis North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2025 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 Tax Increment Revenue Contribution By Year By Entity For the Perioding Ending September 30, 2025 Amount & Source of Revenue in the Tax Increment Fund FY 2025: Property Tax Increment Revenue Collected $174,722.81 Total Revenues in Fiscal Year 2025: $174.722.81 Amount and Purpose of Expenditures of the Fund FY 2025: TIF 3 Annual Contribution to City Point PI $20,798.69 TIF 3 Expenses $0.00 Total Fund Expenditures in Fiscal Year 2025: $20.798.69 Captured Appraised Value by Taxing Entity and Total Amount of Tax Increment Revenue Received: Taxing Unit Fiscal Tarrant Tax Year Year City of NRH County Taxable Value 2024 2025 $95,692,313 $95,692,313 Base Year Appraised Value 2019 2020 $6,348,296 $6,348,296 Captured Increment Value 2024 2025 $89,344,017 $89,344,017 Captured Increment Value 2024 2025 $89,344,017 $89,344,017 Tax Rate Per $100 of Valuation (1)(2) 2024 2025 $0.149144 $0.046875 Calculated Tax Increment Revenue (100%) 2024 2025 $133,251.24 $41,880.01 Tax Increment Revenue Received 2024 2025 $133,251.60 $41,471.21 Calculated Tax Increment Revenue (100%) 2024 2025 $133,251.24 $41,880.01 Difference $0.36 ($408.80) This report submitted by Trudy . Lewis Notes: ('): NRH Tax Rate for TIF#3 is 45% of its M&O Tax Rate for the year c2>: 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 30,2025 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 Tax Increment Revenue Contribution By Year By Entity For the Perioding Ending September 30, 2025 190 1 u r u w 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 2023 2024 $33,362.43 $11,449.05 $44,811.48 2024 2025 $133,251.60 $41,449.34 $174,722.81 Contributions to Date: $207,870.50 $67,824.11 $275,716.48 Maximum Contribution: $4,173,032.00 $1,707,150.00 $5,880,182.00 Contribution Remaining ($): $3,965,161.50 $1,639,325.89 $5,604,465.52 Contribution Remaining (%): 95.0% 96.0% 95.3% North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2025 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 PID Contribution & TIF Expenses By Year For the Perioding Ending September 30, 2025 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 2024 $19,503.20 $352.93 $19,856.13 2024 2025 $20,798.69 $0.00 $20,798.69 To Date: $67,367.14 $1,383.70 $68,750.84 North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2025 TAX INCREMENT REINVESTMENT ZONE NUMBER 3 Captured Value By Year For the Perioding Ending September 30, 2025 2019 Base Value: $6,348,296 Mill III 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 2024 2025 $95,692,313 $89,344,017 Annual TIF Account Summary Listing(February) North Richland Hills Tax Increment Reinvestment Zone Number 3 Annual Report for the Period Ending September 30,2025