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Home My WebLink About1997-12-04 CITY OF EULESS TAX INCREMENT FINANCING REINVESTMENT ZONE NUMBER ONE BOARD MINUTES DECEMBER 4, 1997 The Tax Increment Financing Reinvestment Zone Number One Board met at 3:00 p.m. on December 4, 1997, in the Conference Room of Municipal Building A, 201 North Ector Drive, Euless, Texas. Members present included: Mary Lib Saleh, Mayor, City of Euless Ron May, President, Hurst-Euless-Bedford Independent School District Board Ron Caloss, Superintendent, Hurst-Euless-Bedford Independent School District Jane Sanford, Precinct Administrator, Tarrant County Commissioner, Glen Whitley's Office Bruce Luckock, General Manager, Bennett Consolidated Billy Owens, in attendance for Todd Smith Members absent included: Del Bennett Others in attendance included: Tom Hart, City Manager, City of Euless Joe Hennig, Deputy City Manager, City of Euless Bob McFarland, City Attorney, City of Euless David Witcher, Director of Economic Development & Marketing, City of Euless Becky Null, Assistant to the City Secretary, City of Euless Glen Whitley, Tarrant County Commissioner, Precinct 3 Lisa McMillan, Tarrant County Economic Development Coordinator Julie Lennon, Attorney for Bennett Consolidated CALL TO ORDER Mayor Saleh called the meeting to order at 3:17 p.m. and introductions were made around the room. . 4 TIF REINVESTMENT ZONE NO. 1 BOARD MINUTES DECEMBER 4, 1997 PAGE 2 REVIEW ITEMS TO BE DISCUSSED City Manager Tom Hart noted that there was a quorum and the voting members in attendance were: Chair Mayor Saleh, Ron Caloss, Ron May, Bruce Luckock, Billy Owens in attendance for Todd Smith, and Jane Sanford. Mr. Hart explained that the mall project is not dead yet, however, the Tax Increment Financing, (TIF) will expire December 13, 1997, unless certain things happen. In order to keep the TIF in effect, the City of Euless will acquire property within the TIF district. The agreements with all entities are intact with the exception of the Hurst-Euless- Bedford Independent School District, (HEB ISD) agreement. He noted that an amendment has been made to the HEB ISD agreement to extend the TIF with the school and gives them a hold harmless that if there is any state legislation that would affect school financing prior to this project being done, will give them a way out. Mr. Hart further noted that land must be acquired by the city within the TIF district per a project and financing plan that has been approved by the TIF Board and the City Council. The TIF Board will consider the project and financing plan on this agenda, but does not need to consider the land acquisition. The City Council will then consider the land acquisition, project plan, and financing plan at their December 9, 1997, meeting. ELECTION OF OFFICERS City Attorney Bob McFarland stated that the statute requires only the appointment of a chairperson by the governing body of the TIF district. The by-laws suggest the appointment of a vice-chair to serve in the Mayor's absence and a secretary to record the minutes. The Euless City Council has appointed Mayor Saleh as the chairperson. He recommended that the City Secretary be appointed as secretary of the board, since all records produced by the board must be filed under the City Secretary. Under the statutes, all terms for members are for two years and the City Council will reappoint members of the board on the December 9 agenda. Unless HEB ISD or the County want to change members, it is intended for members to be reappointed. Mr. Hart suggested that the vice-chair be a representative of the developer. Jane Sanford motioned to appoint Bruce Luckock as Vice-Chair and City Secretary Susan Crim as secretary of the TIF Board. Billy Owens seconded the motion. Ayes: Mary Lib Saleh, Ron May, Ron Caloss, Jane Sanford, Bruce Luckock, and Billy Owens Nays: None Mayor Saleh declared the motion carried. TWREINVE�TMENT ZONE NO. 1 BOARD MINUTES DECEMBER 4, 1997 PAGE 3 APPROVAL OF MINUTES Ron Caloss motioned to approve the January 24, 1996, minutes as presented. Ron May seconded the motion. It was noted that page 3 of the minutes stated that Euless City Council Members "appointed" Mayor Mary Lib Saleh Chairman of the Tax Increment Financing Reinvestment Zone Number One Board in their regular meeting on February 12, 1996, which was after the minutes being voted on. Ron Caloss motioned to approve the January 24, 1996, minutes with the amendment that the Euless City Council Members "will appoint" Mayor Mary Lib Saleh Chairman of the Tax Increment Financing Reinvestment Zone Number One Board in their regular meeting on February 12, 1996. Ron May seconded the amended motion. Ayes: Mary Lib Saleh, Ron May, Ron Caloss, Jane Sanford, Burce Luckock, and Billy Owens Nays: None Mayor Saleh declared the motion carried. PROJECT AND FINANCE PLANS Mr. Hart stated that the project plan outlines the proposed uses and is basically a memo of understanding agreed upon with the developer. It has been amended to make it timely to date. Per item 6 of the plan, Mr. Hart noted that the project cost is estimated at $223 million and that the net new assessed value will be approximately $172 million after deducting $4.96 million, which was the assessed value at the time the TIF District was formed. The City of Euless will make up the difference above $29,250,000 projected as the TIF District funded activities. Mr. Hart noted that item 7 deals with the public improvements. In addition to the off-site improvements, the City will acquire property for public parking, right-of-way traffic easements and improvements to the public parking. He stated that the City Council will take action to acquire property at the December 9 meeting to handle some of the parking. Approximately $5.9 million will go for public improvements, $16 million will go for land acquisition and $1.2 million will go for improvements to the parking area with approximately $6 million paying for the interest on the notes. TIF*REINVESTMENT ZONE NO. 1 BOARD MINUTES DECEMBER 4, 1997 PAGE 4 Mr. Hart stated that one scenario is that the TIF District will put money, $29,250,000 into the project at the time of construction when the project goes vertical. It will not be fully on the tax rolls at that time and part of it would finance the interest. The developer, in effect, would get approximately $23 million. Or, the $29.2 million would be paid after construction was complete and the developer would pay the interest on the notes. Mr. Hart stated that funding would be either by TIF bonds at the time the project was completed or some type of note that would be rolled into a final TIF bond. It was further noted that the developer will know in the next year if the project will be developed. If development occurs, construction would take 18 to 24 months and the mall would be set to open either prior to Easter or prior to Christmas. Mr. Hart reviewed the remainder of the project and financing plan. He noted on exhibit map A that the area not cross-hatched represents possible future development, Phase II, which would not be part of the TIF, but would go on the tax rolls. The exact configuration will not be known until a final design is completed. City Attorney McFarland noted that the school's agreement limits the TIF to no more than two anchors, so additional anchors would not be part of the TIF. In response to a question, Mr. Hart explained that if the land acquisition is approved and the mall is not constructed, the city will own the land. City Attorney McFarland noted that state statute provides for amendment to the project or financial plans. The Board is being asked to approve the plans now because state statutes require approval within 36 months of the creation of the TIF District. The project or financing could change between now and when the final anchor tenants are procured and, if so, would require the Board's approval. Ron May motioned to approve the project plan and the finance plan. Bruce Luckock seconded the motion. Ayes: Mary Lib Saleh, Ron May, Ron Caloss, Jane Sanford, Bruce Luckock, and Billy Owens Nays: None Mayor Saleh declared the motion carried. NOTE: Ron Caloss left the meeting at 4:00 p.m. TlrREINVE�TMENT ZONE NO. 1 BOARD MINUTES DECEMBER 4, 1997 PAGE 5 APPROVAL OF BY-LAWS City Attorney McFarland stated that the by-laws are similar to those proposed at a previous meeting with minor changes. He explained that the by-laws will be submitted to the City Council for approval at their December 9 meeting. After discussion among the Board concerning the by-laws, it was agreed to: 1) amend the by-laws by deleting the 2nd paragraph on page 2, since it is covered by state statutes; 2) changing Executive Committee to Board Committees whenever used under Section 7, "Executive Committee"; 3) and to change the sentence under Section 8, "Compensation of Directors" to read; Directors as such shall not receive any salary or compensation for their services. Ron May motioned to approve the by-laws as amended. Jane Sanford seconded the motion. Ayes: Mary Lib Saleh, Ron May, Jane Sanford, Bruce Luckock, and Billy Owens Nays: None Mayor Saleh declared the motion carried. REPORT City Manager Tom Hart stated that he has held off reports to the press, and will report that nothing is in the process if asked. NEXT MEETING The next meeting was not scheduled. ADJOURNMENT The meeting was adjourned at 4:17 p.m. Minutes submitted by: Becky Null, Assistant to the City Secretary