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HomeMy WebLinkAbout2010-11-22 TIRZ #3 Meeting Minutes MINUTES OF A MEETING OF THE - TAX INCREMENT REINVESTMENT ZONE NUMBER THREE BOARD NOVEMBER 22 , 2010 CALL TO ORDER A meeting of the Euless Tax Increment Reinvestment Zone Number Three Board was called to order by Chairman , Mayor Mary Lib Saleh at 5 : 35 p . m . on Monday , November 22 , 2010 , in the Precouncil Conference Room at Euless City Hall , 201 North Ector D rive , Euless , Texas . Those present included Board Members : Mayor Mary Lib Saleh , Mayor Pro Tern Linda Martin , Council Members Tim Stinneford and Glenn Porterfield , Tarrant County Representative Carolyn Sims , and Tarrant County College District Representative Dr. Larry Darlage . JPS Health Network Representative Scott Rule was not present . Staff members present were City Manager Gary McKamie , Deputy City Manager Loretta Getchell , City Secretary Susan Crim and Director of Planning and Economic Development Mike Collins . Kevin Curley of the McKamie-Krueger Law Firm was present and David Pettit was present representing the firm of Gideon Toal , Inc. . INTRODUCTION OF BOARD MEMBERS AND ELECTION OF VICE CHAIR Mayor Saleh reported that she had been appointed Chair of the Euless Tax Increment Reinvestment Zone Number Three Board . Each of the Board members introduced themselves and the Chair opened the floor for nominations of Vice Chair. Council Member Stinneford nominated Council Member Porterfield to serve as Vice Chair. The motion was seconded by Dr. Darlage and carried by unanimous vote . P RESENTATION OF PRELIMINARY PROJECT AND FINANCING PLAN Deputy City Manager Loretta Getchell reported that the City Council took action on N ovember 9 , 2010 , to create the Euless Tax Increment Reinvestment Zone Number Three (TIRZ) . There are no other active reinvestment zones in the City . This Board must approve the Final Project and Financing Plan prior to the City Council ' s approval of it . The Glade Parks TIRZ is a 200-acre mixed use development that will include both traditional retail and restaurants as well as a pedestrian -oriented residential and commercial component . The project consists of $ 12 . 1 million of public improvements which includes streets , water and sanitary sewer lines , landscaping and wetland mitigation . The City feels strongly that if these improvements are not done , development will not materialize . The development is west of SH 121 , south of Heritage Town Shopping Center on Glade Road , east of Heritage Avenue and north of Cheek- S parger Road . The City previously entered into a Chapter 380 sales tax agreement with the developer, and had expected they would complete all the infrastructure with the City rebating them in arrears . That arrangement put all of the upfront cost on the TIRZ #3 Minutes PQge 2 of 3 November 22, 2010 developer, and in the current economic conditions , they were unable to get the financing for the public infrastructure portion of the project. The projected cost of the infrastructure within the development is $ 19 . 1 million . They have invested $ 7 million , and we are proposing to invest the remaining $ 12 . 1 million . The City has canceled the Chapter 380 sales tax agreement that was in place in lieu of the installation of the payment agreement proposed through the TIRZ . The project will include : ( 1 ) the construction of Rio Grande Boulevard which is the major north -south connector that will intersect with Harrington Garden Parkway and run south to Check Sparger Road at an estimated cost of $ 3 . 9 million ; ( 2) the bridge over Little Bear Creek at an estimated cost of $ 1 million ; (3 ) a portion of Heritage Avenue at an estimated cost of $231 , 000 ; (4) utility relocation and access improvements along SH121 at an estimated cost of $ 1 . 3 million ; (5) landscaping and wetland mitigation at an estimated cost of $ 800 , 000.; (6) construction of Brazos Boulevard and other public streets at an estimated cost of $3 . 5 million ; and (7) entryways from SH121 at an estimated cost of $ 587 , 000 . The Financing Plan shows that the project is expected to be done in seven phases , with the infrastructure being done in three segments . The first part of the infrastructure will include Harrington Garden Parkway down to the second entrance from SH121 and the planned portion of Heritage Avenue . This will allow the developer to have access to Phase 1 of the project. Depending on how quickly they begin to fill the pad sites , Phase 2 of the infrastructure would be completed , which will likely include Rio Grande Boulevard down to Little Bear Creek and the portion of Brazos Boulevard that will go through the residential section . Phase 3 of the infrastructure will likely include the bridge over Little Bear Creek and complete the southern portion of Brazos Boulevard from Rio Grande Boulevard up to the Town Centre . The project would be funded by Certificates of Obligation issued by the City and repaid from the revenue of the TIRZ . The developer has also submitted a petition requesting the creation of a Public Improvement District . The City Council will consider that action on December 14 , and it will allow the City to assess the developer for any shortfall in the TIRZ revenue in the early stages of the development . The City is requesting participation in the TIRZ from Tarrant County in the amount of 75 % of ad valorem tax for 15 years and 50 % for the remaining 10 year term . From the Tarrant County College District , we are requesting 50 % participation for the life of the TIRZ. The City is planning to include 75 % of its ad valorem tax for the entire term of the TIRZ , 30 % of its one cent unrestricted sales tax for 15 years , and 20 % of its one cent unrestricted sales tax for the remaining 10 years . Based on Gideon Toal ' s analysis , we expect that the TIRZ will generate enough revenue to liquidate bonds in 15 years ; however we do intend to stagger these bond issuances , and the bonds will have a 20 year life , so we are asking for a 25 year term for the TIRZ . We have committed that at any time that we have sufficient revenue generated , we will terminate the TIRZ and will not be asking for extensions or additional projects . The analysis prepared indicates that with the financing costs included , we are looking at approximately $21 million in project costs and expect a net benefit to all of the taxing entities of about $ 197 million . After this Board approves the Project and TIRZ #3 Minutes Page 3 of 3 November 22, 2010 Financing Plan , it will be submitted to the City Council for final approval and then final participation agreements with all entities can be executed . It is hoped a construction contract can be awarded by late January with the issuance of the first set of bonds , and construction can begin by the middle of February . APPROVAL OF RESOLUTION NO . 2010 -01 TIRZ #3 Upon motion by Council Member Porterfield and second by Dr. Darlage , Resolution No . 2010 -01 TIRZ #3 approving the Project and Financing Plan for Tax Increment Reinvestment Zone Number Three , City of Euless , Texas — Glade Parks was approved by unanimous vote . EXECUTIVE SESSION The executive session was not held . ADJOURNMENT There being no further business , the meeting was adjourned at 5 : 55 p . m . APPROVED : jire,‘ c , Thal Mary Lib Saleh Mayor ATTEST : Ant - Susan Crim , RMC City Secretary