HomeMy WebLinkAboutReso 2016-01 TIRZ #4RESOLUTION NO. 2016 -01 TIRZ #4
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TAX
INCREMENT REINVESTMENT ZONE (TIRZ) NUMBER FOUR, CITY OF
EULESS, TEXAS APPROVING A CONSTRUCTION, FUNDING, AND
DEVELOPMENT AGREEMENT WITH THE CITY OF EULESS AND
CADG 901 AIRPORT FREEWAY, LLC; AND APPROVING THE
DEDICATION AND USE OF REVENUE IN THE TIRZ FUND AND
CONSTRUCTION FUND TO THE CITY OF EULESS, TEXAS.
WHEREAS, as authorized by Chapter 311 of the Texas Tax Code (the "Act") and
pursuant to Ordinance No. 2089, adopted by the City Council of the City of Euless, Texas
(the "City") on September 22, 2015, the City created Tax Increment Reinvestment Zone
Number Four, City of Euless, Texas (the "Zone "); and
WHEREAS, pursuant to Ordinance No. 2089 the City created the Board of
Directors for the Zone ( "TIRZ Board "); and
WHEREAS, CADG 901 Airport Freeway, LLC (the 'Developer") has undertaken a
project to improve and develop a site of approximately 56 acres within the Zone as a first
class mixed use development with urban residential and retail uses to be known as Euless
Midtown (the "Development "); and
WHEREAS, the Developer proposes to construct public improvements for the
benefit of the Development ( "Authorized Improvements "); and
WHEREAS, the TIRZ Board has approved a project and financing plan for the
Zone which includes the Authorized Improvements for the Development; and
WHEREAS, the total revenue collected and required by the Act to be deposited
into a tax increment fund ("TIRZ Fund ") each calendar year from participating taxing
entities is referred to herein as the "TIRZ Revenue "; and
WHEREAS, the City has agreed to issue certificates of obligation for the purpose
of funding the Authorized Improvements as set forth in the Construction, Funding, and
Development Agreement between the City of Euless, the Developer, and the TIRZ Board;
and
WHEREAS, pursuant to the Construction, Funding, and Development Agreement
the City has agreed to loan to the TIRZ Board the proceeds from the certificates of
obligation which will be placed in a Construction Fund that will be used to finance the
construction and acquisition of the Authorized Improvements and guarantee debt service
payments on the certificates of obligation; and
WHEREAS, a Public Improvement District ( "PID ") that encompasses the
Development has also been created for the purpose of financing the acquisition,
construction, and installation of the Authorized Improvements through assessments on
the properties within the PID ( "PID Assessments "); and
WHEREAS, the Construction, Funding, and Development Agreement authorizes
the use of TIRZ Revenue to reduce the amount of the PID Assessment on the PID
Properties to fund the construction of the Authorized Improvements and also authorizes
the use of TIRZ Revenue in the TIRZ Fund to pay the City's debt service on the certificates
of obligation issued by the City; and
WHEREAS, the TIRZ Board finds that the use of TIRZ Revenue in the TIRZ Fund
and monies in the Construction Fund to pay for the Authorized Improvements and the
City's debt service for the certificates of obligation will further the purposes of the Zone
and is necessary for the implementation of the project and financing plan for the Zone.
NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
TAX INCREMENT REINVESTMENT ZONE NUMBER FOUR, CITY OF EULESS,
TEXAS, THAT:
SECTION 1.
The Construction, Funding, and Development Agreement between the City of
Euless, CADG 901 Airport Freeway, LLC, and the TIRZ Board is hereby authorized and
approved.
SECTION 2.
All TIRZ Revenue that accrues in the TIRZ Fund shall be dedicated for payment
of the City's annual debt service as a priority payment over all other lawful expenditures
of the TIRZ Fund as set forth in the Construction, Funding, and Development Agreement.
The City Manager is hereby authorized to withdraw and utilize monies from the TIRZ Fund
and the Construction Fund as provided in the Construction, Funding, and Development
Agreement.
SECTION 3;
This Resolution shall take effect immediately from and after its passage and it is
accordingly so resolved.
Resolution No. 2016 -01 TIRZ#41, Page 2 of 3
PASSED AND APPROVED at a meeting of the Board of Directors of the Tax
Increment Reinvestment Zone Number Four, City of Euless, Texas on the 27 day of
January 2016 by a vote of 6 ayes, o nays, and 0 abstentions.
APPROVED:
Linda M . , hairman, B
of Directors
Reinvestment Zone Numbe
ATTEST:
, ity of Euless, Texas
Sutter, RMC, Board Secretary
Resolution No. 2016 -01 TIRZ#4, Page 3 of 3