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ORD 2007-14 - TIRZ Amend TIRZ #1 04-24-2007ORDINANCE NO. 2007-14 AN ORDINANCE APPROVING THE TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF HUNTSVILLE, TEXAS, AMENDED PROJECT PLAN AND REVISIONS TO THE REINVESTMENT ZONE FINANCING PLAN; AND CONTAINING FINDINGS AND PROVISIONS RELATED TO THE FOREGOING SUBJECT. WHEREAS, pursuant to Chapter 311 of the Texas Tax Code, the City designated a contiguous geographic area within the City as Tax Increment Reinvestment Zone Number One; and WHEREAS, the City prepared and adopted a Reinvestment Zone Financing Plan, and Project Plan on November 9, 2004, and amended same on December 13, 2005; and WHEREAS, pursuant to Ordinance 2004 -16, a Board of Directors were appointed; and WHEREAS, the Board of Directors for the TIRZ Number One met on April 19, 2007 and reviewed the amendments to the Project Plan and revisions to the Reinvestment Zone Financing Plan for Tax Increment Reinvestment Zone Number One — Huntsville, Texas; and WHEREAS, the Board of Directors Chairman has requested that the City Council review these documents and approve same; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS: Section 1. The Board of Directors has made recommendations to the City Council concerning the administration of the Zone. The Board of Directors prepared or caused to be prepared a Project Plan -1- REVISED 4/192009 and a Reinvestment Zone Financing Plan for the Zone as described in Section 311.011, Texas Tax Code, and is submitting amendments and revisions to the plans to the City Council for its approval. The City hereby approves the amended Project Plan (attached as Exhibit "A ") and the revisions to the Reinvestment Zone Financing Plan (attached as Exhibit `B ") for the Tax Increment Reinvestment Zone Number One — Huntsville, Texas. Section 2. If any provision, section, subsection, sentence, clause or phrase of this Ordinance, or the application of same to any person or circumstances, is for any reason held to be unconstitutional, void or invalid, the validity of the remaining provisions of this Ordinance or their application to other persons or set of circumstances shall not be affected thereby, it being the intent of the City Council in adopting this Ordinance that no portion hereof or regulations connected herein shall become inoperative or fail by reason of any unconstitutionality, voidness or invalidity of any portion hereof, and all provisions of this Ordinance are declared severable for that purpose. Section 3. It is hereby found, determined and declared that a sufficient written notice of the date, hour, place and subject of the meeting of the City Council at which this Ordinance was adopted was posted at a place convenient and readily accessible at all times to the general public at the City Hall of the City for the Time required by law preceding its meeting, as required by the Open Meetings Law, Texas Government Code, ch. 551, and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter hereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. -2- REVISED 41[92007 PASSED AND ADOPTED this 24th day of April 2007. APPROVED this 24th day of April 2007. THE CA'BYY9)F WJNTSVILLE. TEXAS 7 \3. Turner, ATTEST: - ' I� Darma Welter, City Secretary APPROVED AST ORM: Thomas A. Lee' Ciky Attomey -3- REVISED 6/1912007 EXHIBIT "A" HUNTSVILLE TIRZ NO. I REVISED PROJECT PLAN CURRENT PROJECT PLAN ESTIMATED PROJECT COST K Project A (West Hills Park) 2,118 Project B (Bearkat Crossing) 2,451 TOTAL 4,569 NEW PROJECT PLAN ESTIMATED PROJECT COST K Project A (West Hills Park) 2,118 Project B (Bearkat Crossing) Deleted - Project C (Ravenwood Village) 8,303 Transportation Projects 2,000 TOTAL 12,421 EXHIBIT "B" CITY OF HUNTSVILLE TIRZ NO. 1 SUMMARY PROJECT PLAN (PUBLIC INFRASTRUCTURE PROJECTS) PROJECT West Hills Park Ravenwood Village SUBTOTAL COST, $K 2,118 8,303 10,421 Transportation Projects 2,000 TOTAL 12,421 TIRZ FUND CONTRIBUTIONS PROJECT West Hills Park Ravenwood Village TOTAL AMOUNT, $K* 3,827 10,485 14,312 * If a conservative rate of value increase (2% per year) after full build out is assumed, TIRZ income increases to $4,195K for West Hills Park and $11,493K for Ravenwood Village, or a total of $15,688K. Water Waste Water Drainage Demolition Utility Relocations Streets PUBLIC Feasibility Analysis Exhibit - W E,-) x rixLLtil rAnx1 Item Estimated Cost $ K 50 96 150 250 250 356 SUBTOTAL Engineering /Surveying Fees (15 %) Financing Costs SUBTOTAL Contingency & Admin Costs (10 %) TOTAL Note: Public and cost 173 600 193 1,152 773 2,118 HUNTSVILLE TIRZ NO. 1 Feasibility Analysis Exhibit r U 11L11 Item East / West Public Road Offsite Paving Detention Ponds Retaining Walls Public On Site Water Public On Site Sanitary Sewer SUBTOTAL Engineering/Surveying Fees (15 %) SUBTOTAL Public Roads (Residential Development) SUBTOTAL (Property Commerce) Transportation Projects* TOTAL *NOTE: Not part of Property Commerce projects -1(A V rIV VV VV" V1LUA%ff E Estimated Cost $ K 645 335 1,511 389 230 214 3,324 499 4,480 8,303 2,000 10,303 HUNTSVILLE TIRZ NO. 1 Feasibility Analysis Exhibit PROPOSED BUILDOUT SCHEDULE (With TIRZ) WEST HILLS PARK PROJECT 1 YEAR USE SIZE K/S . Ft. VALUE $K 2006 Grocery 66 8,550 2011 Larger Retail 38 4,000 Retail 12 1,500 Retail 15 1,750 SUBTOTAL 131 15,800 2807 Theatre 18 3,300 2012 Conference /Hotel 81 8,500 Eatery 3 875 Eatery 4 900 Retail 22 3,350 Eatery 4 800 Eatery 8 1,200 SUBTOTAL 140 18,925 2008 Eatery 6 850 2013 Motel and Eatery 14 2,250 Gas Station 5 1,250 Pharmacy 16 2,150 Bank 9 1,350 SUBTOTAL 50 7,850 TOTAL 321 42,575 HUNTSVILLE TIRZ NO. I Feasibility Analysis Exhibit ADDITIONAL BUILDOUT SCHEDULE (With TIRZ) RAVENWOOD VILLAGE YEAR USE SIZE KSF NO. UNITS VALUE, $K 2008 Discount Warehouse Retail 127.0 - 6,350 Lease Space 18.5 1,665 National Retailers 54.0 4,860 Pads - Full Service Restaurants 10.0 1,850 Pads - Fast Food Restaurants 6.4 - 1,440 Pads - Retail 3.5 - 315 Homes - 58 1.1,600 Subtotal 219.4 i 58 28,080 2009 Theater 50.0 - 2,500 Lease Space 18.5 - 1,665 National Retailers 54.0 4,860 Grocery Store 109.0 - 5,450 Pads - Banks 5.0 - 625 Pads - Full Service Restaurants 6.0 - 1,110 Pads - Fast Food Restaurants 9.5 - 2,138 Pads - Retail 4.5 - 405 Homes 58 11,600 Subtotal 256.5 30,353 2010 Lease Space 18.5 1,665 National Retailers 54.0 - 4,860 Hotel 40.0 - 3,600 Pads - Full Service Restaurants 6.0 - 1,110 Pads - Fast Food Restaurants 7.5 - 1,688 Homes - 59 11,800 Subtotal 126.0 59 24,723 2011 Lease Space 18.5 - 1,665 National Retailers 54.0 - 4,860 Pads - Banks 5.0 - 625 Subtotal 77.5 - 7,150 2012 Lease Space 18,5 - 1,665 National Retailers 54.0 - 4,860 Subtotal 72.5 - 6.525 TOTAL 751.9 175 96,831 Feasibility Analysis Exhibit. TIRZ FUND (With TIRZ) WEST HILLS PARK YEAR DEVELOPMENT VALUE$K DEVELOPMENT CUM. VALUE$K TIRZ FUND' $K 2004 2005 4-5-,W - 4;880 - 2006 a-,92-5 - a4,7-25 - 44-7- 2007 2-56- 2008 4575 44-4- 2009 42-,� 344- 2010 �5 34 2011 15, 800 42 15,800 34-4- 2012 18,925 42 34,725 344 117 2013 7,850 42,575 34-4256 2014 - 42,575 314 2015 - 42,575 314 2016 - 42,575 314 2017 - 42,575 314 2018 - 42,575 314 2019 42,575 314 2020 42,575 314 2021 42,575 314 2022 42,575 314 2023 42,575 314 2024 314 TOTAL 42,575 42,575 5-,744- 3,827 I *Based on Tax Rates of: City $0.425/$100 County $0.3125/$100 HUNTSVILLE TIRZ NO. 1 Feasibility Analysis Exhibit TIRZ FUND FROM ADDITIONAL BUILDOUT SCHEDULE (With TIRZ) RAVENWOOD VILLAGE YEAR DEVELOPMENT VALUE, SK DEVELOPMENT VALUE CUM, $K TIRZ FUND, $K 2004 - - 2005 - - 2006 - - 2007 - - 2008 28,080 28,080 2009 30,353 58,433 207 2010 24,723 83,156 431 2011 7,150 90,306 613 2012 6,525 96,831 666 2013 96,831 714 2014 96,831 714 2015 96,831 714 2016 96,831 714 2017 96,831 714 2018 - 96,831 714 2019 96,831 714 2020 96,831 714 2021 96,831 714 2022 96,831 714 2023 96,831 714 2024 - 714 TOTAL 96,831 96,831 10,485 Based on tax rates of: City $0.425 / $100 valuation County $0.3125 / $100 valuation IIUNTSVILLE TIRZ NO. I PROPERTY COMMERCE PROJECT CITY OF HUNTSVILLE GAP ANALYSIS * Annual Net Operating Income (Avg. Year 1 -10) $2,731,330 Project Costs Land $17,058,970 Construction Site 25,261,527 Buildings 10,898,250 Architectual & Engineering 594,450 Tenant Allowance 3,963,000 Leasing 1,724,025 Financing 9,912,469 Other Fees 1,387,050 Development Mgmt 2,111,045 Contingency 1,804,312 Soft Costs 1,279,498 SubTotal $75,994,596 Land Sales (28,683,841) Net Project Cost $47,310,755 Supportable Value @ 8.97% rate of return on NOI $30,449,610 Net Project Cost ($47,310,555) Gap ($16,860,945) ** * Based on 1119106 Cash Flow Analysis provided by Developer `* 35 % of Net Project Cost