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ORD 2004-16 - TIRZ Board of Directors 08-03-2004ORDINANCE NO. 2004-16 AN ORDINANCE DESIGNATING A CONTIGUOUS GEOGRAPHIC AREA WITHIN THE CITY OF HUNTSVILLE AS TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF HUNTSVILLE, TEXAS, FOR TAX INCREMENT FINANCING PURPOSES PURSUANT TO CHAPTER 311 OF THE TEXAS TAX CODE; CREATING A BOARD OF DIRECTORS FOR SUCH ZONE; CONTAINING FINDINGS AND PROVISIONS RELATED TO THE FOREGOING SUBJECT; PROVIDING A SEVERABILITY CLAUSE; AND DECLARING AN EMERGENCY. WHEREAS, pursuant to Chapter 311 of the Texas Tax Code, the City may designate a contiguous geographic area within the City as a reinvestment zone if the area satisfies the requirements of certain sections of Chapter 311 of the Texas Tax Code; and WHEREAS, the City has prepared a preliminary reinvestment zone financing plan, which provides that City of Huntsville (City) ad valorem taxes are to be deposited into the tax increment fund, and that taxes of other taxing units may be utilized in the financing of the proposed zone; and WHEREAS, the City provided written notice of the public hearing on the creation of the proposed zone, complying with the requirements of Chapter 311, Texas Tax Code, to the governing body of all taxing units levying taxes on property in the proposed zone; and WHEREAS, a notice of the November 11, 2003, public hearing on the notice for intent of the proposed zone was published on November 2, 2003, in the Huntsville Item, a newspaper of general circulation in the City; and WHEREAS, at the public hearing on November 11, 2003, interested persons were allowed to speak for or against the creation of the proposed zone, its boundaries, or the concept of tax increment financing; and owners of property in the proposed zone were given a reasonable opportunity to protest the inclusion of their property in the proposed zone; and 1 REVISED 6/24/04 WHEREAS, evidence was received and presented at the public hearing in favor of the creation of the proposed zone under the provisions of Chapter 311, Texas Tax Code; and WHEREAS, no owner of real property in the proposed zone protested the inclusion of their property in the proposed zone; and WHEREAS, the City has provided all information, and made all presentations, given all notices and done all other things required by Chapter 311, Texas Tax Code, or other law as a condition to the creation of the proposed zone; and WHEREAS, the total appraised value of taxable real property in the proposed zone and all other tax increment reinvestment zones previously created by the City is approximately $7,000,000; and WHEREAS, the total appraised value of taxable real property taxable by Walker County, in which the proposed zone is located, is approximately $7,000,000; and WHEREAS, the total appraised value of real property taxable by the Huntsville Independent School District, in which the proposed zone is located, is approximately $7,000,000; and WHEREAS, the total appraised value of real property taxable by the Walker County Hospital District, in which the proposed zone is located, is approximately $7,000,000; and WHEREAS, the total area within the proposed zone is approximately 578 acres, excluding property that is publicly owned; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS: -2- REVISED 6/24/04 Section 1. Findines. (a) That the facts and recitations contained in the preamble of this Ordinance are hereby found and declared to be true and correct and are adopted as part of this Ordinance for all purposes. (b) That the City Council further finds and declares that the proposed improvements in the zone will significantly enhance the value of all the taxable real property in the proposed zone and will be of general benefit to the City. (c) That the City Council further finds and declares that the proposed zone meets the criteria and requirements of Section 311.005 of the Texas Tax Code because the proposed zone contains substantial areas that are predominantly open and underdeveloped, and lack public water distribution, wastewater collection, street and storm drainage facilities which conditions substantially impair and arrest the sound growth of the City. (d) That the City Council, pursuant to the requirements of Chapter 311, Texas Tax Code, further finds and declares: (1) That the proposed zone is a contiguous geographic area located wholly within the corporate limits of the City of Huntsville; (2) That the total appraised value of taxable real property in the proposed zone does not exceed fifteen percent of the total appraised value of taxable real property in the City and in the industrial districts created by the City; (3) That the proposed zone does not contain more than fifteen percent of the total appraised value of real property taxable by Walker County, the Huntsville Independent School District, or the Walker County Hospital District; -3- REVISED 6/24/04 (4) That 10 percent or less of the property in the proposed reinvestment zone, excluding property dedicated to public use, is used for residential purposes, which is defined in Chapter 311, Texas Tax Code as any property occupied by a house which has less than five living units; and (5) That the development or redevelopment of the property in the proposed zone will not occur solely through private investment in the reasonably foreseeable future. Section 2. Designation of the Zone That the City, acting under the provisions of Chapter 311, Texas Tax Code, including Section 311.005(a), does hereby designate as a reinvestment zone, and create and designate a reinvestment zone over, the area described in Exhibit "A" and depicted in the map attached hereto as Exhibit `B" to promote the development and redevelopment of the area. The reinvestment zone shall hereafter be named for identification as Tax Increment Reinvestment Zone Number One, City of Huntsville, Texas, (the "Zone "). The City Council specifically declares that the Zone is designated pursuant to Section 311.005(a) and (2) of the Texas Tax Code. Section 3. Board of Directors That there is hereby created a Board of Directors for the Zone, which shall consist of seven (7) members. Positions One through Three on the Board of Directors shall be reserved for the City. Positions Four through Six shall be reserved for Walker County. Position Seven shall be reserved for Huntsville Independent School District (HISD). Any taxing unit that appoints a director shall be assigned a Board position number in the order the City receives the appointment. Failure of a taxing unit to appoint a director by September 15, 2004, shall be deemed a waiver of the right to appoint a director, and the City shall be entitled to appoint persons to the position, which shall be filled as provided below. If more than two taxing units levying taxes within the Zone appoint a director, the -4- REVISED 6124/04 number of directors on the Board of Directors shall be increased by one for each taxing unit above two that appoints a director to the board; provided, if more than four taxing units levying taxes within the Zone appoint a director, the number of directors on the Board of Directors shall be increased by two for each taxing unit above four that appoints a director to the board, provided, further, that the maximum number of directors shall not exceed fifteen (15). The City shall be entitled to appoint a person to one position of each of the two positions created as a result of more than four taxing units appointing directors, which position shall be filled as provided below. The City Council shall place for nomination and approve, the directors to Positions One through Three of the Board of Directors and any position unfilled on January 15, 2005, and any City position created by the appointment of a director by the increase of more than four taxing units levying taxes within the Zone, subject to the consent and approval of the City Council. The directors appointed to odd - numbered positions shall be appointed for two year terms, beginning on the effective date of this Ordinance, while the directors appointed to even - numbered positions shall be appointed to a one year term, beginning on the effective date of this Ordinance. All subsequent appointments shall be for two -year terms. The member of the Board of Directors appointed to Position Three is hereby designated to serve as the chair of the Board of Directors for a one -year term beginning on the effective date of this Ordinance. Thereafter the City Council shall annually nominate and appoint, subject to City Council approval, a member to serve as chair for a term of one year beginning on January 1 of the following year. The City Council authorizes the Board of Directors to elect from its members a vice - chairman and such other officers as the Board of Directors sees fit. -5- REVISED 6/24/04 The Board of Directors shall make recommendations to the City Council concerning the administration of the Zone. The Board of Directors shall prepare or cause to be prepared and adopt a project plan and a reinvestment zone financing plan for the Zone as described in Section 311.011, Texas Tax Code, and shall submit such plans to the City Council for its approval. The City hereby delegates to the Board of Directors all powers necessary to prepare and implement the project plan and reinvestment zone financing plan, subject to approval by the City Council, including the power to employ any consultants or enter into any reimbursement agreements payable solely from the Tax Increment Fund established pursuant to Section 7 of this Ordinance, subject to the approval of the City Council, that may be reasonably necessary or convenient to assist the Board of Directors in the preparation of the project plan and reinvestment zone financing plan and in the issuance of tax increment obligations. Section 4. Duration of the Zone That the Zone shall take effect on January 1, 2004, for the deposit of tax increments into the Tax Increment Fund established pursuant to Section 7 of this Ordinance, and termination of the operation of the Zone shall occur on December 31, 2023, or at an earlier time designated by subsequent ordinance, or at such time, subsequent to the issuance of tax increment bonds, if any, that all project costs, tax increment bonds, notes and other obligations of the Zone, and the interest thereon, have been paid in full. -6- REVISED 6/24/04 Section 5. Tax Increment Base That the Tax Increment Base of the City or any other taxing unit participating in the Zone is the total appraised value of all real property taxable by the City or other taxing units participating in the Zone and located in the Zone, determined as of January 1, 2004, the year in which the Zone was designated as a reinvestment zone (the "Tax Increment Base "). Section 6. Tax Increment Fund That there is hereby created and established a Tax Increment Fund for the Zone which maybe divided into subaccounts as authorized by affirmative action of the City Council. All Tax Increments, as defined below, shall be deposited in the Tax Increment Fund. The Tax Increment Fund and any subaccount shall be maintained at the depository bank of the City and shall be secured in the manner prescribed by law for funds of Texas cities. The annual Tax Increment shall equal the property taxes levied by the City and any other taxing unit participating in the Zone for that year on the captured appraised value, as defined by Chapter 311 of the Texas Tax Code, of real property located in Zone that is taxable by the City or any other taxing unit participating in the Zone, less any amounts that are to be allocated from the Tax Increment pursuant to Chapter 311 of the Texas Tax Code. All revenues from the sale of any tax increment bonds, notes or other obligations hereafter issued for the benefit of the Zone by the City, if any; revenues from the sale of property acquired as part of the project plan and reinvestment zone financing plan, if any; and other revenues to be used in the Zone shall be deposited into the Tax Increment Fund. Prior to the termination of the Zone, money shall be disbursed from the Tax Increment Fund only to pay project costs, as defined by the Texas Tax Code, for the Zone, to satisfy the claims of holders of tax increment bonds or notes issued -7- REVISED 6/24/04 for the Zone, or to pay obligations incurred pursuant to agreements entered into to implement the project plan and reinvestment zone financing plan and achieve their purpose pursuant to Section 311.010(b) of the Texas Tax Code. Section 7. Severability If any provision, section, subsection, sentence, clause or phrase of this Ordinance, or the application of same to any person to set 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 8. Open Meetings 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. -8- REVISED 6/24/04 Section 9. Notices The contents of the notice of the public hearing, which hearing was held before the City Council on November 11, 2003, and the publication of said notice, are hereby ratified, and confirmed. PASSED AND ADOPTED this 3rd day of August 2004. APPROVED this 3rd day of August 2004. THE CITY OF HUNT Steed Smith, Mayor Pro Tern ATT T"City anna Welter, Secretary APPROVED AS TO F Thomas A. Leepe , ty A orney -9- REVISED 6/24/04 PROJECT PLAN August 2004 Tax Increment Reinvestment Zone No. 1 City of Huntsville, Texas SCHRADER & CLINE, LLC George R. Schrader Larry D. Cline 4800 Broadway, Ste A Addison, TX 75001 972 - 661 -1973 schcliaa,swbell.net PROJECT PLAN — HUNTSVILLE TIRZ NO.1 AUGUST 2004 The City of Huntsville, Texas proposes to establish a Tax Increment Reinvestment Zone ( "TIRZ ") for the purpose of dedicating the increase in tax revenue generated within the TIRZ to provide funds for public infrastructure to encourage accelerated development and redevelopment in the IH -45 /SH 30 area of the City. The TIRZ consists of approximately 805 acres and is more fully described in Project Plan Exhibit: A. The City is creating this TIRZ to encourage accelerated development and redevelopment in the IH -45 /SH 30 area of the City that has remained generally undeveloped and would benefit from the proposed public infrastructure improvements. It is expected that the TIRZ will exist for twenty (20) years or the date when all project costs are paid, whichever comes first. As set forth in Section 311.011 of the Tax Increment Financing Act of the Tax Code, the Project Plan for Tax Increment Reinvestment Zone No. 1, Huntsville, Texas must and does include the following elements: 1. A map showing existing uses and conditions of real property in the TIRZ and a map showing proposed improvements to and proposed use of the property. ■ The boundaries of the TIRZ are shown on the map labeled Project Plan Exhibit: B; ■ Project Plan Exhibit: C shows existing land use within the TIRZ. Currently, the area is generally undeveloped. The area contains less than ten percent residential. ■ Project Plan Exhibit: D identifies public improvements being proposed for the TIRZ; ■ A listing of those public improvements is shown in Project Plan Exhibit: E; ■ Project Plan Exhibit: F shows anticipated Future Land Use within the TIRZ. 2 PROJECT PLAN— HUNTSVILLE TIRZ NO. 1 2. Proposed changes of zoning ordinances, the master plan of the municipality, building codes, and other municipal ordinances. ■ Any changes to codes, ordinances, or master plan as a result of the creation of the TIRZ will be made through the standard process and procedures of the City. 3. A list of estimated non - project costs. ■ Non - project costs within the TIRZ are those development costs not paid for by the TIRZ. These costs will include, but are not limited to, $42.6 million, which is comprised of new development. 4. A statement of a method of relocating persons to be displaced as a result of implanting the plan. ■ In the process of developing the TIRZ, any relocations will be made through the standard process and procedures of the City. 3 PROJECT PLAN — HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit: A BOUNDARY DESCRIPTION CITY OF HUNTSVILLE, TEXAS Planning & Development 448 State Hwy. 75 North Huntsville, Texas 77320 THE STATE OF TEXAS § COUNTY OF WALKER § I, Leonard E. Woods, Registered Professional Land Surveyor No. 2524, do hereby certify that this document was prepared under 22 TAC 663.2 1, does not reflect the results of an on the ground survey, and is not to be used to convey or establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. TAX INCREMENT REINVESTMENT ZONE NUMBER ONE Being a parcel of land containing approximately 805 acres, within the corporate limits of the City of Huntsville, situated in the LEWIS COX LEAGUE, Abstract No. 13, the PLEASANT GRAY LEAGUE, Abstract No. 24, the J. W. ADAMS SURVEY, Abstract No. 62, the PETER TUMLINSON LABOR, Abstract No. 539 and the JESSE YOUNG LABOR, Abstract No. 618, Walker County, Texas, said parcel being more particularity described by metes and bounds as follows; BEGINNING in the southwest right -of -way line of Interstate Highway No. 45 at the most northerly corner of Lot 1 of West Hill Park, Section 4 as shown on a Plat recorded in Volume 3, page 146, Plat Records of Walker County, Texas; THENCE SOUTHEASTERLY, with the southwest right -of -way line of Interstate Highway No. 45 and the northeast lines of Lots 1, 2, 4 and 3 of said West Hill Park, Section 4 to the east corner of said Lot 3; THENCE S 70 006'59 "W - 642.13 feet (Plat Call) to the most northerly northeast corner of Reserve "A" of said West Hill Park, Section 4 and the northwest corner of a called 3.636 acre tract described in a Deed to Boxcars Properties, LTD recorded in Volume 376, page 853, Official Public Records of Walker County, Texas; 4 PROJECT PLAN — HUNTSVILLE TIRZ NO.1 THENCE S 22 018'40 "E (Plat Call), with a west line of said Boxcars Properties, LTD tract, a distance of 355.65 feet (Plat Call) to the its southwest corner and a reentrant corner of said Reserve "A' THENCE N 67020'13"E (Plat Call), with the most easterly north line of said Reserve "A", a distance of 707.44 feet (Plat Call) to the most easterly northeast corner of said Reserve "A" in the southwest right -of -way line of Interstate Highway No. 45; THENCE SOUTHEASTERLY, with the southwest right -of -way line of Interstate Highway No. 45 to the northeast corner of Lot 1 (1.9495 acre) of Parkwood Square as shown on a Plat recorded in Volume 3, page 77, Plat Records; THENCE EASTERLY, with the north lines of said Lot 1 of Parkwood Square to its northwest corner in the east right -of -way line of West Hill Park Circle as shown on a Plat of West Hill Park recorded in Volume 2, page 189, Plat Records; THENCE SOUTHERLY, with the east right -of -way line of said West Hill Park Circle, to a point in the north right -of -way line of State Highway No. 30; THENCE WESTERLY, with the north right -of -way line of State Highway No. 30, to its intersection with the west right -of- -way line of said West Hill Park Circle; THENCE NORTHERLY, with the west right -of -way line of said West Hill Park Circle to a point on the north side of a Cull `D Sac of said West Hill Park Circle and being a easterly corner of Lot 3 (1.85 acres) and a southerly corner of "Unrestricted Reserve" as shown on said Plat of West Hill Park; THENCE N 31031'43"W (Plat Call), with the common lines of said Lot 3 and Unrestricted Reserve of said West Hill Park, a distance of 177.46 feet (Plat Call) to the northeast corner of said Lot 3; THENCE S 87033'10"W (Plat Call), continuing with the common line of said Lot 3 and Unrestricted Reserve, a distance of 148.00 feet (Plat Call) to the northwest corner of said Lot 3 in the east line of a called 6.71 acre tract described in a Deed to Brazos - Huntsville, LP recorded in Volume 180, page 139, Deed Records of Walker County, Texas; THENCE NORTHERLY, with the east line of said Brazos - Huntsville, LP tract, to its northeast corner; THENCE WESTERLY, with the north line of said Brazos - Huntsville, LP tract, to its northwest corner; THENCE SOUTHERLY, with the west line of said Brazos - Huntsville, LP tract, to its southwest corner in the north right -of -way line of State Highway No. 30; PROJECT PLAN — HUNTSVILLE TIRZ NO. 1 THENCE WESTERLY, with the north right -of -way line of State Highway No. 30, to the southeast corner of Reserve "A" (8.91 acres) as shown on a Plat of West Hill Park, Phase 1 – Section 2 recorded in Volume 3, page 53, Plat Records; THENCE SOUTHERLY, across State Highway No. 30, to the northwest corner of Lot 1, Block 1 (20.3565 acres) of West Hill Subdivision, Section One as shown on a Plat recorded in Volume 1, page 185, Plat Records, said corner being in the east right -of -way of Veterans Memorial Parkway (called West Hills Drive on said Plat recorded in Volume 1, page 185, Plat Records); THENCE SOUTHERLY, with the east right -of -way of Veterans Memorial Parkway, to its intersection with the north right -of -way of Col. Etheredge Boulevard (called Commerce Drive on said Plat recorded in Volume 1, page 185, Plat Records); THENCE NORTHEASTERLY, with the north right -of -way of Col. Etheredge Boulevard, to its intersection with the east right -of -way line of Financial Plaza as shown on said Plat recorded in Volume 1, page 185, Plat Records; THENCE SOUTHEASTERLY, with the east right -of -way line of Financial Plaza, to the southwest corner of Lot 8 (0.44 acre) of a Replat of West Hill Subdivision, Section 1, Block 5 as shown on a Plat recorded in Volume 4, page 23, Plat Records, said corner being in the north line of called 248.02 acre tract described in a Deed to Sam Dominey recorded in Volume 90, page 488, Official Public Records; THENCE EASTERLY, with the north line of said Dominey tract, to its northeast corner in the west line of Lot 2A (26.70 acres) of Replat of Lot 2A, Sundance Ranch, Section One as shown on a Plat recorded in Volume 3, page 76, Plat Records; THENCE SOUTHERLY, with the east line of said Dominey tract and the west line of said Lot 2A, approximately 47 feet to the southwest corner of said Lot 2A and the northwest corner of a called 32.2328 acre tract described in a Deed to MNC Realty, LP recorded in Volume 456, page 155, Official Public Records; THENCE N 86 017'30 "W (Plat Call), with the south line of said Lot 2A and the north line of said MNC Realty, LP tract, a distance of 1563.49 feet (Plat Call) to the southeast corner of said Lot 2A and the northeast corner of said MNC Realty, LP 32.2328 acre tract in the southwest right -of -way line of Interstate Highway No. 45; THENCE SOUTHEASTERLY, with the southwest right -of -way line of Interstate Highway No. 45, crossing Smither Drive, to its intersection with the northwest line of a called 80 acre tract described in a Deed to Sam Houston State Teachers College recorded in Volume 55, page 547, Deed Records, said point being also the most easterly corner of a called 125.35 acre Con PROJECT PLAN — HUNTSVILLE TIRZ NO.1 tract described in a Deed to John W. Amick recorded in Volume 200, page 518, Official Public Records; THENCE EASTERLY, across Interstate Highway No. 45, to the south corner of a called 1.92 acre tract described in a Deed to W.T. and H.Y. Robinson recorded in Volume 172, page 174, Deed Records; THENCE N 60 °43'E (Deed Call), with the southeast line of said Robinson 1.92 acre tract, a distance of 563.3 feet (Deed Call) to its east corner and the most westerly corner of a called 1.92 acre tract described in a Deed to the State of Texas recorded in Volume 171, page 374, Deed Records; THENCE N 60 °43'E (Deed Call), with the northwest line of said State of Texas 1.92 acre tract, a distance of 74.8 feet (Deed Call) to an angle corner; THENCE N 05 °24'E (Deed Call), with the west line of said State of Texas 1.92 acre tract, a distance of 94.6 feet (Deed Call) to its north corner: THENCE S 64025'E (Deed Call), with the north or northeast line of said State of Texas 1.92 acre tract, to the southeast corner of a called 0.466 acre tract described in a Deed to Bradley K. Alford recorded in Volume 451, page 551, Official Public Records, a 6" diameter steel fence corner post (Deed Call); THENCE N 18 °10'E (Deed Call), with the east line of said Alford 0.466 acre tract, a distance of 270.50 feet (Deed Call) to its northeast corner on the south line of 25th Street and in the east line of Sam Houston State University property; THENCE SOUTHEASTERLY, across Sam Houston State University property, to the north corner of Yoakum Ridge subdivision recorded in Volume 1, page 29, Plat Records, a point on the southeast side of Avenue M (formerly Aberdeen Drive); THENCE SOUTHWESTERLY, with the southeast right -of -way line of Avenue M, to its intersection with the northeast right -of -way of Interstate Highway No. 45; THENCE SOUTHWESTERLY, across Interstate Highway No. 45, to the north corner of Goldenheaded Cane Associates, LTD 3.894 Acre Tract subdivision as shown on a Plat recorded in Volume 3, page 97, Plat Records, said corner being in the southeast line of said Sam Houston State Teachers College 80 acre tract; THENCE SOUTHWESTERLY, with the southeast line of said Sam Houston State Teachers College 80 acre tract and the northwest line of said 3.894 Acre Tract as follows: (1) S 35 °53'58 "W - 128.54 feet (Plat Call) (2) (2) S 32 °24'05 "W - 297.33 feet (Plat Call) 7 PROJECT PLAN — HUNTSVILLE TIRZ NO.1 and (3) S 31 °46'03 "W - 277.51 feet (Plat Call) to the west corner of said 3.894 Acre Tract and the north corner of a called 2.29 acre tract described in a Deed to Paul Vilardi, Trustee, et al recorded in Volume 353, page 458, Deed Records; THENCE SOUTHWESTERLY, continuing with the southeast line of said Sam Houston State Teachers College 80 acre tract to its south corner in the east line of a called 105.13 acre tract described in a Deed to Sam Houston Normal Institute recorded in Volume 50, page 145, Deed Records; THENCE S 01055'E- 68 varas (Deed Call) to the southeast corner of said Sam Houston Normal Institute 105.13 acre tract; THENCE S 87 °50'W (Deed Call), with the south line of said Sam Houston Normal Institute tract, crossing Veterans Memorial Parkway; a distance of 1166.2 varas (Deed Call) to an angle corner; THENCE N 57 °30'W (Deed Call), with the southwest line of said Sam Houston Normal Institute 105.13 acre tract, a distance of 346.3 varas (Deed Call) to the west corner of same and being the south corner of said Sam C. Dominey 248.20 acre tract; THENCE with the southwest and west lines of said Dominey 248.20 acre tract as follows: (1) N 48 028'40 "W - 715.72 feet (Deed Call) (2) N 22 044'37 "E - 663.18 feet (Deed Call) (3) S 86 052'45 "W - 510.44 feet (Deed Call) and (4) N 02 °27' 14 "W 4709.44 feet (Deed Cali) to the northwest corner of said Dominey 248,20 acre tract and the southwest corner of said West Hill Subdivision, Section One; THENCE N 02 036'55 "E (Plat Call), with the west line of said West Hill Subdivision, Section One, a distance of 1995.58 feet (Plat Call) to its northwest corner in the south right -of- way line of State Highway No. 30; THENCE N 86 044'46 "E (Plat Call), with the north line of said West Hill Subdivision, Section One and the south right -of -way line of State Highway No. 30, a distance of 200.00 feet (Plat Call) to the west right -of -way line of Veterans Memorial Parkway; THENCE NORTHERLY, across State Highway No. 30, to the southeast corner of Lot 1 as shown on said Plat of West Hill Park, Phase 1 – Section 2 recorded in Volume 3, page 53, Plat Records, said corner being also in the west right -of -way line of Veterans Memorial Parkway, formerly called West Hills Drive on said Plat recorded in Volume 3, page 53, Plat Records; 0 PROJECT PLAN— HUNTSVILLE TIRZ NO.1 THENCE NORTHERLY, with the east line of said Lot 1 and the west right -of -way line of Veterans Memorial Parkway, to the northeast corner of said Lot 1; THENCE WESTERLY, with the north lines of said Lot 1, to its northwest corner, said corner being also the most westerly southwest corner of said Reserve "A" of West Hill Park, Phase 1 Section 2; THENCE N 07 055'42 "W (Plat Call), with the most northerly west line of said Reserve "A ", to its northwest corner in the south line of a tract owned by the State of Texas and part of the Texas Department of Criminal Justice "Wynne Farm "; THENCE N 87 023'57 "E (Plat Call), with the common line of said Reserve "A" and T.D.C.J. "Wynne Farm" to the west right -of -way of Veterans Memorial Parkway and the southwest corner of a called 1.907 acre tract described in an Easement to the City of Huntsville, a concrete monument (Deed Call); THENCE N 02 032'59 "W (Deed Call), with the west right -of -way of Veterans Memorial Parkway and the west line of said City of Huntsville 1.907 acre Easement tract, a distance of 2080.30 feet (Deed Call) to its northwest corner in the southwest right -of -way line of Interstate Highway No. 45; THENCE SOUTHEASTERLY, with the southwest right -of -way line of Interstate Highway No. 45, to the POINT OF BEGINNING. Signed. Leonard E. Woods Reg. Prof. Land Surveyor No-2524 9 PROJECT PLAN— HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit: B 10 v ice► +` ,��,,��_,` PROJECT PLAN - HUNTSVILLE TIRZ NO.1 its. Project Plan Exhibit: D rovo -to 4? lio``��' il �e O a �l ' ° 9 12 PROJECT PLAN— HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit: E PUBLIC INFRASTRUCTURE Item Estimated Cost $ K Water 50 Waste Water 96 Drainage 150 Demolition 250 Utility Relocations 250 Technology 950 Streets 356 SUBTOTAL Engineering/Surveying Fees (15 %) 315 Financing Costs 600 SUBTOTAL Contingency & Admin Costs (10 %) 302 TOTAL Note: Public improvement program and cost 2,102 915 3,319 13 ��Itt ." i�\N^ CI i 3S All, I PROJECT PLAN August 2004 Tax Increment Reinvestment Zone No. 1 City of Huntsville, Texas SCHRADER & CLINE, LLC George R. Schrader Larry D. Cline 4800 Broadway, Ste A Addison, TX 75001 972 - 661 -1973 schc1i(@swbe11.net PROJECT PLAN— HUNTSVILLE TIRZ NO.1 AUGUST 2004 The City of Huntsville, Texas proposes to establish a Tax Increment Reinvestment Zone ( "TIRZ ") for the purpose of dedicating the increase in tax revenue generated within the TIRZ to provide funds for public infrastructure to encourage accelerated development and redevelopment in the IH -45 /SH 30 area of the City. The TIRZ consists of approximately 805 acres and is more fully described in Project Plan Exhibit: A. The City is creating this TIRZ to encourage accelerated development and redevelopment in the IH -45 /SH 30 area of the City that has remained generally undeveloped and would benefit from the proposed public infrastructure improvements. It is expected that the TIRZ will exist for twenty (20) years or the date when all project costs are paid, whichever comes first. As set forth in Section 311.011 of the Tax Increment Financing Act of the Tax Code, the Project Plan for Tax Increment Reinvestment Zone No. 1, Huntsville, Texas must and does include the following elements: 1. A map showing existing uses and conditions of real property in the TIRZ and a map showing proposed improvements to and proposed use of the property. ■ The boundaries of the TIRZ are shown on the map labeled Project Plan Exhibit: B; ■ Project Plan Exhibit: C shows existing land use within the TIRZ. Currently, the area is generally undeveloped. The area contains less than ten percent residential. ■ Project Plan Exhibit: D identifies public improvements being proposed for the TIRZ; ■ A listing of those public improvements is shown in Project Plan Exhibit: E; ■ Project Plan Exhibit: F shows anticipated Future Land Use within the TIRZ. 2 PROJECT PLAN — HUNTSVILLE TIRZ NO. 1 2. Proposed changes of zoning ordinances, the master plan of the municipality, building codes, and other municipal ordinances. ■ Any changes to codes, ordinances, or master plan as a result of the creation of the TIRZ will be made through the standard process and procedures of the City. 3. A list of estimated non - project costs. ■ Non - project costs within the TIRZ are those development costs not paid for by the TIRZ. These costs will include, but are not limited to, $42.6 million, which is comprised of new development. 4. A statement of a method of relocating persons to be displaced as a result of implanting the plan. ■ In the process of developing the TIRZ, any relocations will be made through the standard process and procedures of the City. ki PROJECT PLAN — HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit: A BOUNDARY DESCRIPTION CITY OF HUNTSVILLE, TEXAS Planning & Development 448 State Hwy. 75 North Huntsville, Texas 77320 THE STATE OF TEXAS § COUNTY OF WALKER § I, Leonard E. Woods, Registered Professional Land Surveyor No. 2524, do hereby certify that this document was prepared under 22 TAC 663.21, does not reflect the results of an on the ground survey, and is not to be used to convey or establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. TAX INCREMENT REINVESTMENT ZONE NUMBER ONE Being a parcel of land containing approximately 805 acres, within the corporate limits of the City of Huntsville, situated in the LEWIS COX LEAGUE, Abstract No. 13, the PLEASANT GRAY LEAGUE, Abstract No. 24, the J. W. ADAMS SURVEY, Abstract No. 62, the PETER TUMLINSON LABOR, Abstract No. 539 and the JESSE YOUNG LABOR, Abstract No. 618, Walker County, Texas, said parcel being more particularity described by metes and bounds as follows; BEGINNING in the southwest right -of -way line of Interstate Highway No. 45 at the most northerly corner of Lot 1 of West Hill Park, Section 4 as shown on a Plat recorded in Volume 3, page 146, Plat Records of Walker County, Texas; THENCE SOUTHEASTERLY, with the southwest right -of -way line of Interstate Highway No. 45 and the northeast lines of Lots 1, 2, 4 and 3 of said West Hill Park, Section 4 to the east corner of said Lot 3; THENCE S 70 006'59 "W - 642.13 feet (Plat Call) to the most northerly northeast corner of Reserve "A" of said West Hill Park, Section 4 and the northwest corner of a called 3.636 acre tract described in a Deed to Boxcars Properties, LTD recorded in Volume 376, page 853, Official Public Records of Walker County, Texas; 4 PROJECT PLAN— HUNTSVILLE TIRZ NO.1 THENCE S 22 018'40 "E (Plat Call), with a west line of said Boxcars Properties, LTD tract, a distance of 355.65 feet (Plat Call) to the its southwest corner and a reentrant corner of said Reserve "A"; THENCE N 67020'13"E (Plat Call), with the most easterly north line of said Reserve "A ", a distance of 707.44 feet (Plat Call) to the most easterly northeast corner of said Reserve "A" in the southwest right -of -way line of Interstate Highway No. 45; THENCE SOUTHEASTERLY, with the southwest right -of -way line of Interstate Highway No. 45 to the northeast corner of Lot 1 (1.9495 acre) of Parkwood Square as shown on a Plat recorded in Volume 3, page 77, Plat Records; THENCE EASTERLY, with the north lines of said Lot 1 of Parkwood Square to its northwest corner in the east right -of -way line of West Hill Park Circle as shown on a Plat of West Hill Park recorded in Volume 2, page 189, Plat Records; THENCE SOUTHERLY, with the east right -of -way line of said West Hill Park Circle, to a point in the north right -of -way line of State Highway No. 30; THENCE WESTERLY, with the north right -of -way line of State Highway No. 30, to its intersection with the west right -of -way line of said West Hill Park Circle; THENCE NORTHERLY, with the west right -of -way line of said West Hill Park Circle to a point on the north side of a Cull `D Sac of said West Hill Park Circle and being a easterly corner of Lot 3 (1.85 acres) and a southerly corner of "Unrestricted Reserve" as shown on said Plat of West Hill Park; THENCE N 31 031'43 "W (Plat Call), with the common lines of said Lot 3 and Unrestricted Reserve of said West Hill Park, a distance of 177.46 feet (Plat Call) to the northeast corner of said Lot 3; THENCE S 87033'10"W (Plat Call), continuing with the common line of said Lot 3 and Unrestricted Reserve, a distance of 148.00 feet (Plat Call) to the northwest corner of said Lot 3 in the east line of a called 6.71 acre tract described in a Deed to Brazos - Huntsville, LP recorded in Volume 180, page 139, Deed Records of Walker County, Texas; THENCE NORTHERLY, with the east line of said Brazos - Huntsville, LP tract, to its northeast corner; THENCE WESTERLY, with the north line of said Brazos - Huntsville, LP tract, to its northwest corner; THENCE SOUTHERLY, with the west line of said Brazos- Huntsville, LP tract, to its southwest corner in the north right -of -way line of State Highway No. 30; 5 PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 THENCE WESTERLY, with the north right-of-way line of State Highway No. 30, to the southeast comer of Reserve "X' (8.91 acres) as shown on a Plat of West Hill Park, Phase I – Section 2 recorded in Volume 3, page 53, Plat Records; THENCE SOUTHERLY, across State Highway No. 30, to the northwest comer of Lot 1, Block 1 (20.3565 acres) of West Hill Subdivision, Section One as shown on a Plat recorded in Volume 1, page 185, Plat Records, said comer being in the east right-of-way of Veterans Memorial Parkway (called West Hills Drive on said Plat recorded in Volume 1, page 185, Plat Records); THENCE SOUTHERLY, with the east right-of-way of Veterans Memorial Parkway, to its intersection with the north right-of-way of Col. Etheredge Boulevard (called Commerce Drive on said Plat recorded in Volume 1, page 185, Plat Records); THENCE NORTHEASTERLY, with the north right-of-way of Col. Etheredge Boulevard, to its intersection with the east right-of-way line of Financial Plaza as shown on said Plat recorded in Volume 1, page 185, Plat Records; THENCE SOUTHEASTERLY, with the east right-of-way line of Financial Plaza, to the southwest comer of Lot 8 (0.44 acre) of a Replat of West Hill Subdivision, Section 1, Block 5 as shown on a Plat recorded in Volume 4, page 23, Plat Records, said comer being in the north line of called 248.02 acre tract described in a Deed to Sam Dominey recorded in Volume 90, page 488, Official Public Records; THENCE EASTERLY, with the north line of said Dominey tract, to its northeast comer in the west line of Lot 2A (26.70 acres) of Replat of Lot 2A, Sundance Ranch, Section One as shown on a Plat recorded in Volume 3, page 76, Plat Records; THENCE SOUTHERLY, with the east line of said Dominey tract and the west line of said Lot 2A, approximately 47 feet to the southwest comer of said Lot 2A and the northwest comer of a called 32.2328 acre tract described in a Deed to MNC Realty, LP recorded in Volume 456, page 155, Official Public Records; THENCE N 86017'30"W (Plat Call), with the south line of said Lot 2A and the north line of said MNC Realty, LP tract, a distance of 1563.49 feet (Plat Call) to the southeast comer of said Lot 2A and the northeast comer of said MNC Realty, LP 32.2328 acre tract in the southwest right-of-way line of Interstate Highway No. 45; THENCE SOUTHEASTERLY, with the southwest right-of-way line of Interstate Highway No. 45, crossing Smither Drive, to its intersection with the northwest line of a called 80 acre tract described in a Deed to Sam Houston State Teachers College recorded in Volume 55, page 547, Deed Records, said point being also the most easterly comer of a called 125.35 acre 0 PROJECT PLAN — HUNTSVILLE TIRZ NO. 1 tract described in a Deed to John W. Amick recorded in Volume 200, page 518, Official Public Records; THENCE EASTERLY, across Interstate Highway No. 45, to the south corner of a called 1.92 acre tract described in a Deed to W.T. and H.Y. Robinson recorded in Volume 172, page 174, Deed Records; THENCE N 60 °43'E (Deed Call), with the southeast line of said Robinson 1.92 acre tract, a distance of 563.3 feet (Deed Call) to its east corner and the most westerly corner of a called 1.92 acre tract described in a Deed to the State of Texas recorded in Volume 171, page 374, Deed Records; THENCE N 60 °43'E (Deed Call), with the northwest line of said State of Texas 1.92 acre tract, a distance of 74.8 feet (Deed Call) to an angle corner; THENCE N 05 °24'E (Deed Call), with the west line of said State of Texas 1.92 acre tract, a distance of 94.6 feet (Deed Call) to its north corner: THENCE S 64 °25'E (Deed Call), with the north or northeast line of said State of Texas 1.92 acre tract, to the southeast corner of a called 0.466 acre tract described in a Deed to Bradley K. Alford recorded in Volume 451, page 551, Official Public Records, a 6" diameter steel fence corner post (Deed Call); THENCE N 18 °10'E (Deed Call), with the east line of said Alford 0.466 acre tract, a distance of 270.50 feet (Deed Call) to its northeast corner on the south line of 25th Street and in the east line of Sam Houston State University property; THENCE SOUTHEASTERLY, across Sam Houston State University property, to the north corner of Yoakum Ridge subdivision recorded in Volume 1, page 29, Plat Records, a point on the southeast side of Avenue M (formerly Aberdeen Drive); THENCE SOUTHWESTERLY, with the southeast right -of -way line of Avenue M, to its intersection with the northeast right -of -way of Interstate Highway No. 45; THENCE SOUTHWESTERLY, across Interstate Highway No. 45, to the north corner of Goldenheaded Cane Associates,. LTD 3.894 Acre Tract subdivision as shown on a Plat recorded in Volume 3, page 97, Plat Records, said corner being in the southeast line of said Sam Houston State Teachers College 80 acre tract; THENCE SOUTHWESTERLY, with the southeast line of said Sam Houston State Teachers College 80 acre tract and the northwest line of said 3.894 Acre Tract as follows: (1) S 35 °53'58 "W 128.54 feet (Plat Call) (2) (2) S 32 °24'05 "W - 297.33 feet (Plat Call) 7 PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 and (3) S 31146'03"W- 277.51 feet (Plat Call) to the west comer of said 3.894 Acre Tract and the north comer of a called 2.29 acre tract described in a Deed to Paul Vilardi, Trustee, et al recorded in Volume 353, page 458, Deed Records; THENCE SOUTHWESTERLY, continuing with the southeast line of said Sam Houston State Teachers College 80 acre tract to its south comer in the east line of a called 105.13 acre tract described in a Deed to Sam Houston Normal Institute recorded in Volume 50, page 145, Deed Records; THENCE S 01'55'E- 68 varas (Deed Call) to the southeast comer of said Sam Houston Normal Institute 105.13 acre tract; THENCE S 87050'W (Deed Call), with the south line of said Sam Houston Normal Institute tract, crossing Veterans Memorial Parkway, a distance of 1166.2 varas (Deed Call) to an angle comer; THENCE N 57030'W (Deed Call), with the southwest line of said Sam Houston Normal Institute 105.13 acre tract, a distance of 346.3 varas (Deed Call) to the west comer of same and being the south comer of said Sam C. Dominey 248.20 acre tract; THENCE with the southwest and west lines of said Dominey 248.20 acre tract as follows: (1) N 48028'40"W- 715.72 feet (Deed Call) (2) N 22-44'37"E- 663.18 feet (Deed Call) (3) S 86-52'45"W- 510.44 feet (Deed Call) and (4) N 02027'14"W- 4709.44 feet (Deed Call) to the northwest comer of said Dominey 248.20 acre tract and the southwest comer of said West Hill Subdivision, Section One; THENCE N 02036'55"E (Plat Call), with the west line of said West Hill Subdivision, Section One, a distance of 1995.58 feet (Plat Call) to its northwest comer in the south right-of- way line of State Highway No. 30; THENCE N 86044'46"E (Plat Call), with the north line of said West Hill Subdivision, Section One and the south right-of-way line of State Highway No. 30, a distance of 200.00 feet (Plat Call) to the west right-of-way line of Veterans Memorial Parkway; THENCE NORTHERLY, across State Highway No. 30, to the southeast comer of Lot I as shown on said Plat of West Hill Park, Phase 1– Section 2 recorded in Volume 3, page 53, Plat Records, said comer being also in the west right-of-way line of Veterans Memorial Parkway, formerly called West Hills Drive on said Plat recorded in Volume 3, page 53, Plat Records; M PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 THENCE NORTHERLY, with the east line of said Lot I and the west right-of-way line of Veterans Memorial Parkway, to the northeast comer of said Lot 1; THENCE WESTERLY, with the north lines of said Lot 1, to its northwest comer, said comer being also the most westerly southwest comer of said Reserve "A" of West Hill Park, Phase I – Section 2; THENCE N 07055'42"W (Plat Call), with the most northerly west line of said Reserve "A", to its northwest comer in the south line of a tract owned by the State of Texas and part of the Texas Department of Criminal Justice "Wynne Farm"; THENCE N 87023'57"E (Plat Call), with the common line of said Reserve "A" and T.D.C.J. "Wynne Farm" to the west right-of-way of Veterans Memorial Parkway and the southwest comer of a called 1.907 acre tract described in an Easement to the City of Huntsville, a concrete monument (Deed Call); THENCE N 02032'59'V (Deed Call), with the west right-of-way of Veterans Memorial Parkway and the west line of said City of Huntsville 1.907 acre Easement tract, a distance of 2080.30 feet (Deed Call) to its northwest comer in the southwest right-of-way line of Interstate Highway No. 45; THENCE SOUTHEASTERLY, with the southwest right-of-way line of Interstate Highway No. 45, to the POINT OF BEGINNING. Signed. Leonard E. Woods Reg. Prof. Land Surveyor No.2524 0 PROJECT PLAN - HUNTSVILLE TIRZ NO.1 Project Plan Exhibit: B i NOT TO SCALE TAX INCREMENT REINVESTMENT ZONE NUMBER ONE EXHIBIT B 10 74 ON r lx� IL I MA Lai w204 map tL PROJECT PLAN— HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit: D /� a rl taw 1v tG]' c� Ml A 'pr�,,.uAv a •�. 1111. R�a / -{I'�['i4L �i r �. t� w ri_ � - V �e> >Vii /7@J riii �- i �•' i J i j / �� • 11 •� I�� i�.�i a !',, p- ,,. � , r •y n IS-1 -ua� � �' - of I� I _ 1�± �DJ ` �n III ►vs, .yam 4r% . /. r, Wi' li _ J �.• 44+1 '� 7�� . � V� r R . _ i � ►- . ' Syr i ri its All 12 PROJECT PLAN— HUNTSVILLE TIRZ NO.1 Project Plan Exhibit: E PUBLIC INFRASTRUCTURE Item Estimated Cost $ K Water 50 Waste Water 96 Drainage 150 Demolition 250 Utility Relocations 250 Technology 950 Streets 356 SUBTOTAL 2,102 Engineering/Surveying Fees (15 %) 315 Financing Costs 600 SUBTOTAL 915 Contingency & Admin Costs (10 %) TOTAL Note: Public improvement program and cost 302 3,319 13 f ' Ali �, Ff •. ra ht, dw '.Y 3V\` '�'�" � �I a ,icy :�� r •��" Aw � 55 w s � '. t{rr lI FINANCE PLAN August 2004 Tax Increment Reinvestment Zone No. 1 City of Huntsville, Texas SCHRADER & CLINE, LLC George R. Schrader Larry D. Cline 4800 Broadway, Ste A Addison, TX 75001 972 - 661 -1973 schcli(a,swbell.net FINANCE PLAN — HUNTSVILLE TIRZ NO. 1 AUGUST 2004 The Financing Plan provides information on the projected monetary impact that the formation of the Tax Increment Financing Reinvestment Zone (TIRZ) could have on the property described in Finance Plan Exhibit: A and shown in Finance Plan Exhibit: B. It will also describe how that impact can be utilized to enhance the area and region through leveraging the resources of each entity that participates in the project. Below is a summary of the Financing Plan items reauired by law. 1. The proposed public improvements in the TIRZ may include: • Capital costs, including the actual costs of the construction of public works, public improvements, new buildings, structures, and fixtures; and the actual costs of the acquisition of land and the clearing and grading of land; • Financing costs, including all interest paid to holders of evidences of indebtedness or other obligations issued to pay for project costs and any premium paid over the principal amount of the obligations because of the redemption of the obligations before maturity; • Any real property assembly costs; • Professional service costs, including those incurred for architectural, planning, engineering, and legal advise and services; • Any relocation costs; • Organizational costs, including costs of conducting environmental impact studies or other studies, the cost of publicizing the creation of the TIRZ, and the cost of implementing the project plan for the TIRZ; • Interest before and during construction and for one year after completion of construction, whether or not capitalized; • The amount of any contributions made by the municipality from general revenue for the implementation of the project plan; • Imputed administrative costs, including reasonable charges for the time spent by employees of the municipality in connection with the implementation of a project plan; • The cost of operating the TIRZ and project facilities; and • Payments made at the discretion of the governing body of the municipality that the municipality finds necessary or convenient to the creation of the TIRZ or to the implementation of the project plans for the TIRZ. 2 FINANCE PLAN — HUNTSVILLE TIRZ NO. 1 The specific capital improvement projects anticipated to be undertaken in the Huntsville TIRZ No. 1, are included in Finance Plan Exhibit: C. 2. Estimated Project Cost of TIRZ, including administrative expenses. • Project costs are estimated at approximately $ 3.3 million dollars. Specific cost estimates are included in Finance Plan Exhibit: C. 3. Economic Feasibility Study. • An economic feasibility analysis has been completed and is included as Finance Plan Exhibit: D. 4. The estimated amount of bonded indebtedness to be incurred. • Initial project related costs will be advanced by the Developer. Bonds may be issued when adequate tax increment has been created to support debt service. 5. The time when related costs or monetary obligations are to be incurred. • Please refer to Finance Plan Exhibit: C for details regarding the phasing and type of improvement costs anticipated. 6. A description of the methods of financing all estimated project costs and the expected sources of revenue to finance or pay project costs including the percentage of tax increment to be derived from the property taxes of each taxing unit on real property in the TIRZ • Project costs will be financed through loans advanced by developers or the use of tax increment funds received on a pay -as- you -go basis. No new debt is envisioned at this time, but bonds may be issued at a later date when adequate tax increment has been created to support debt service. The revenue sources will be the real property taxes captured by the TIRZ, which will account for 100% of revenues used to fund project costs or bond debt service. For the Financial Plan, it is assumed that the City will participate at 100% of its incremental taxable value and the County will participate at $0.425/$100 valuation. 7. The current total appraised value of taxable real property in the TIRZ. • The current appraised base value of the taxable real property in the TIRZ using the 2003 values provided by the Walker County Appraisal District is $10,000,000. This base value will be updated to 2004 certified values when they are available. K FINANCE PLAN — HUNTSVILLE TIRZ NO. 1 8. The estimated appraised value of the improvements in the TIRZ during each year of its existence. The estimated appraised value of the improvements in the TIRZ per year is listed in the following table. Table 1: Assessed Real Property Value of Anticipated New Development TIRZ No. 1, Huntsville, Texas Years 2004 -2023 YEAR TOTAL ASSESSED VALUE, $M 2004 $ 10.0 2005 25.8 2006 44.7 2007 52.6 2008 52.6 2009 52.6 2010 52.6 2011 52.6 2012 52.6 2013 52.6 2014 52.6 2015 52.6 2016 52.6 2017 52.6 2018 52.6 2019 52.6 2020 52.6 2021 52.6 2022 52.6 2023 52.6 4 FINANCE PLAN - HUNTSVILLE TIRZ NO. 1 • The estimated annual incremental funds available from future development in the TIRZ are listed in the following table. Table 2: Annual Incremental Funds Available from TIRZ No. 1, Huntsville, Texas Years 2004 -2023 Year Assessed Value, $M Base Assessed Value, $M Annual Captured Value, $M TIRZ Funds, $K City $0.425 TIRZ Funds, $K County $0.425 TIRZ Funds, $K Total $0.83 2004 10.0 10.0 - - - - 2005 25.8 10.0 15.8 - - - 2006 44.7 10.0 34.7 67.0 67.0 134.0 2007 52.6 10.0 42.6 147.5 147.5 295.0 2008 52.6 10.0 42.6 181.0 181.0 362.0 2009 52.6 10.0 42.6 181.0 181.0 362.0 2010 52.6 10.0 42.6 181.0 181.0 362.0 2011 52.6 10.0 42.6 181.0 181.0 362.0 2012 52.6 10.0 42.6 181.0 181.0 362.0 2013 52.6 10.0 42.6 181.0 181.0 362.0 2014 52.6 10.0 42.6 181.0 181.0 362.0 2015 52.6 10.0 42.6 181.0 181.0 362.0 2016 52.6 10.0 42.6 181.0 181.0 362.0 2017 52.6 10.0 42.6 181.0 181.0 362.0 2018 52.6 10.0 42.6 181.0 181.0 362.0 2019 52.6 10.0 42.6 181.0 181.0 362.0 2020 52.6 10.0 42.6 181.0 181.0 362.0 2021 52.6 10.0 42.6 181.0 181.0 362.0 2022 52.6 10.0 42.6 181.0 181.0 362.0 2023 52.6 10.0 42.6 181.0 181.0 362.0 181.0 181.0 362.0 TOTAL 3,291.5 3,291.5 6,583 9. The duration of the TIRZ: • The TIRZ was created August 3, 2004. It is proposed that the TIRZ exist for twenty {20} years with termination of the TIRZ set as August 2, 2024 or the date when all project costs are paid and any debt is retired, whichever comes first. R FINANCE PLAN — HUNTSVILLE TIRZ NO. 1 Finance Plan Exhibit: A BOUNDARY DESCRIPTION CITY OF HUNTSVILLE, TEXAS Planning & Development 448 State Hwy. 75 North Huntsville, Texas 77320 THE STATE OF TEXAS § COUNTY OF WALKER § I, Leonard E. Woods, Registered Professional Land Surveyor No. 2524, do hereby certify that this document was prepared under 22 TAC 663.2 1, does not reflect the results of an on the ground survey, and is not to be used to convey or establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. TAX INCREMENT REINVESTMENT ZONE NUMBER ONE Being a parcel of land containing approximately 805 acres, within the corporate limits of the City of Huntsville, situated in the LEWIS COX LEAGUE, Abstract No. 13, the PLEASANT GRAY LEAGUE, Abstract No. 24, the J. W. ADAMS SURVEY, Abstract No. 62, the PETER TUMLINSON LABOR, Abstract No. 539 and the JESSE YOUNG LABOR, Abstract No. 618, Walker County, Texas, said parcel being more particularity described by metes and bounds as follows; BEGINNING in the southwest right -of -way line of Interstate Highway No. 45 at the most northerly corner of Lot 1 of West Hill Park, Section 4 as shown on a Plat recorded in Volume 3, page 146, Plat Records of Walker County, Texas; THENCE SOUTHEASTERLY, with the southwest right -of -way line of Interstate Highway No. 45 and the northeast lines of Lots 1, 2, 4 and 3 of said West Hill Park, Section 4 to the east corner of said Lot 3; THENCE S 70 006'59 "W - 642.13 feet (Plat Call) to the most northerly northeast corner of Reserve "A" of said West Hill Park, Section 4 and the northwest corner of a called 3.636 acre tract described in a Deed to Boxcars Properties, LTD recorded in Volume 376, page 853, Official Public Records of Walker County, Texas; n FINANCE PLAN — HUNTSVILLE TIRZ NO. I THENCE S 22018'40"E (Plat Call), with a west line of said Boxcars Properties, LTD tract, a distance of 355.65 feet (Plat Call) to the its southwest comer and a reentrant comer of said Reserve "A"; THENCE N 67020'1 3"E (Plat Call), with the most easterly north line of said Reserve "A", a distance of 707.44 feet (Plat Call) to the most easterly northeast comer of said Reserve "A" in the southwest right-of-way line of Interstate Highway No. 45; THENCE SOUTHEASTERLY, with the southwest right-of-way line of Interstate Highway No. 45 to the northeast comer of Lot 1 (1.9495 acre) of Parkwood Square as shown on a Plat recorded in Volume 3, page 77, Plat Records; THENCE EASTERLY, with the north lines of said Lot I of Parkwood Square to its northwest comer in the east right-of-way line of West Hill Park Circle as shown on a Plat of West Hill Park recorded in Volume 2, page 189, Plat Records; THENCE SOUTHERLY, with the east right-of-way line of said West Hill Park Circle, to a point in the north right-of-way line of State Highway No. 30; THENCE WESTERLY, with the north right-of-way line of State Highway No. 30, to its intersection with the west right-of-way line of said West Hill Park Circle; THENCE NORTHERLY, with the west right-of-way line of said West Hill Park Circle to a point on the north side of a Cull 'D Sac of said West Hill Park Circle and being a easterly comer of Lot 3 (1.85 acres) and a southerly comer of "Unrestricted Reserve" as shown on said Plat of West Hill Park; THENCE N 3103 1'43"W (Plat Call), with the common lines of said Lot 3 and Unrestricted Reserve of said West Hill Park, a distance of 177.46 feet (Plat Call) to the northeast comer of said Lot 3; THENCE S 87033'10"W (Plat Call), continuing with the common line of said Lot 3 and Unrestricted Reserve, a distance of 148.00 feet (Plat Call) to the northwest comer of said Lot 3 in the east line of a called 6.71 acre tract described in a Deed to Brazos-Huntsville, LP recorded in Volume 180, page 139, Deed Records of Walker County, Texas; THENCE NORTHERLY, with the east line of said Brazos-Huntsville, LP tract, to its northeast comer; THENCE WESTERLY, with the north line of said Brazos-Huntsville, LP tract, to its northwest comer; THENCE SOUTHERLY, with the west line of said Brazos-Huntsville, LP tract, to its southwest comer in the north right-of-way line of State Highway No. 30; 7 FINANCE PLAN — HUNTSVILLE TIRZ NO. I THENCE WESTERLY, with the north right-of-way line of State Highway No. 30, to the southeast comer of Reserve "A" (8.91 acres) as shown on a Plat of West Hill Park, Phase I — Section 2 recorded in Volume 3, page 53, Plat Records; THENCE SOUTHERLY, across State Highway No. 30, to the northwest comer of Lot 1, Block 1 (20.3565 acres) of West Hill Subdivision, Section One as shown on a Plat recorded in Volume 1, page 185, Plat Records, said comer being in the east right-of-way of Veterans Memorial Parkway (called West Hills Drive on said Plat recorded in Volume 1, page 185, Plat Records); THENCE SOUTHERLY, with the east right-of-way of Veterans Memorial Parkway, to its intersection with the north right-of-way of Col. Etheredge Boulevard (called Commerce Drive on said Plat recorded in Volume 1, page 185, Plat Records); THENCE NORTHEASTERLY, with the north right-of-way of Col. Etheredge Boulevard, to its intersection with the east right-of-way line of Financial Plaza as shown on said Plat recorded in Volume 1, page 185, Plat Records; THENCE SOUTHEASTERLY, with the east right-of-way line of Financial Plaza, to the southwest comer of Lot 8 (0.44 acre) of a Replat of West Hill Subdivision, Section 1, Block 5 as shown on a Plat recorded in Volume 4, page 23, Plat Records, said comer being in the north line of called 248.02 acre tract described in a Deed to Sam Dominey recorded in Volume 90, page 488, Official Public Records; THENCE EASTERLY, with the north line of said Dominey tract, to its northeast comer in the west line of Lot 2A (26.70 acres) of Replat of Lot 2A, Sundance Ranch, Section One as shown on a Plat recorded in Volume 3, page 76, Plat Records; THENCE SOUTHERLY, with the east line of said Dominey tract and the west line of said Lot 2A, approximately 47 feet to the southwest comer of said Lot 2A and the northwest comer of a called 32.2328 acre tract described in a Deed to MNC Realty, LP recorded in Volume 456, page 155, Official Public Records; THENCE N 86017'30"W (Plat Call), with the south line of said Lot 2A and the north line of said MNC Realty, LP tract, a distance of 1563.49 feet (Plat Call) to the southeast comer of said Lot 2A and the northeast comer of said MNC Realty, LP 32.2328 acre tract in the southwest right-of-way line of Interstate Highway No. 45; THENCE SOUTHEASTERLY, with the southwest right-of-way line of Interstate Highway No. 45, crossing Smither Drive, to its intersection with the northwest line of a called 80 acre tract described in a Deed to Sam Houston State Teachers College recorded in Volume 55, page 547, Deed Records, said point being also the most easterly comer of a called 125.35 acre M FINANCE PLAN — HUNTSVILLE TIRZ NO. 1 tract described in a Deed to John W. Amick recorded in Volume 200, page 518, Official Public Records; THENCE EASTERLY, across Interstate Highway No. 45, to the south corner of a called 1.92 acre tract described in a Deed to W.T. and H.Y. Robinson recorded in Volume 172, page 174, Deed Records; THENCE N 60 °43'E (Deed Call), with the southeast line of said Robinson 1.92 acre tract, a distance of 563.3 feet (Deed Call) to its east corner and the most westerly corner of a called 1.92 acre tract described in a Deed to the State of Texas recorded in Volume 171, page 374, Deed Records; THENCE N 60 °43'E (Deed Call), with the northwest line of said State of Texas 1.92 acre tract, a distance of 74.8 feet (Deed Call) to an angle corner; THENCE N 05024'E (Deed Call), with the west line of said State of Texas 1.92 acre tract, a distance of 94.6 feet (Deed Call) to its north corner: THENCE S 64 °25'E (Deed Call), with the north or northeast line of said State of Texas 1.92 acre tract, to the southeast corner of a called 0.466 acre tract described in a Deed to Bradley K. Alford recorded in Volume 451, page 551, Official Public Records, a 6" diameter steel fence corner post (Deed Call); THENCE N 18°10'E (Deed Call), with the east line of said Alford 0.466 acre tract, a distance of 270.50 feet (Deed Call) to its northeast corner on the south line of 25th Street and in the east line of Sam Houston State University property; THENCE SOUTHEASTERLY, across Sam Houston State University property, to the north corner of Yoakum Ridge subdivision recorded in Volume 1, page 29, Plat Records, a point on the southeast side of Avenue M (formerly Aberdeen Drive); THENCE SOUTHWESTERLY, with the southeast right -of -way line of Avenue M, to its intersection with the northeast right -of -way of Interstate Highway No. 45; THENCE SOUTHWESTERLY, across Interstate Highway No. 45, to the north corner of Goldenheaded Cane Associates, LTD 3.894 Acre Tract subdivision as shown on a Plat recorded in Volume 3, page 97, Plat Records, said corner being in the southeast line of said Sam Houston State Teachers College 80 acre tract; THENCE SOUTHWESTERLY, with the southeast line of said Sam Houston State Teachers College 80 acre tract and the northwest line of said 3.894 Acre Tract as follows: (1) S 35 °53'58 "W - 128.54 feet (Plat Call) (2) (2) S 32 °24'05 "W - 297.33 feet (Plat Call) 6 FINANCE PLAN — HUNTSVILLE TIRZ NO. 1 and (3) S 31 °46'03 "W - 277.51 feet (Plat Call) to the west comer of said 3.894 Acre Tract and the north comer of a called 2.29 acre tract described in a Deed to Paul Vilardi, Trustee, et al recorded in Volume 353, page 458, Deed Records; THENCE SOUTHWESTERLY, continuing with the southeast line of said Sam Houston State Teachers College 80 acre tract to its south comer in the east line of a called 105.13 acre tract described in a Deed to Sam Houston Normal Institute recorded in Volume 50, page 145, Deed Records; THENCE S 01 055'E- 68 varas (Deed Call) to the southeast comer of said Sam Houston Normal Institute 105.13 acre tract; THENCE S 87'50'W (Deed Call), with the south line of said Sam Houston Normal Institute tract, crossing Veterans Memorial Parkway, a distance of 1166.2 varas (Deed Call) to an angle comer; THENCE N 57030'W (Deed Call), with the southwest line of said Sam Houston Normal Institute 105.13 acre tract, a distance of 346.3 varas (Deed Call) to the west comer of same and being the south comer of said Sam C. Dominey 248.20 acre tract; THENCE with the southwest and west lines of said Dominey 248.20 acre tract as follows: (1) N 48-28'40"W- 715.72 feet (Deed Call) (2) N 22-44'37"E- 663.18 feet (Deed Call) (3) S 86-52'45"W- 510.44 feet (Deed Call) and (4) N 02-27'14"W- 4709.44 feet (Deed Call) to the northwest comer of said Dominey 248.20 acre tract and the southwest comer of said West Hill Subdivision, Section One; THENCE N 02036'55"E (Plat Call), with the west line of said West Hill Subdivision, Section One, a distance of 1995.58 feet (Plat Call) to its northwest comer in the south right-of- way line of State Highway No. 30; THENCE N 86044'46"E (Plat Call), with the north line of said West Hill Subdivision, Section One and the south right-of-way line of State Highway No. 30, a distance of 200.00 feet (Plat Call) to the west right-of-way line of Veterans Memorial Parkway; THENCE NORTHERLY, across State Highway No. 30, to the southeast comer of Lot I as shown on said Plat of West Hill Park, Phase I — Section 2 recorded in Volume 3, page 53, Plat Records, said comer being also in the west right-of-way line of Veterans Memorial Parkway, formerly called West Hills Drive on said Plat recorded in Volume 3, page 53, Plat Records; 10 FINANCE PLAN — HUNTSVILLE TIRZ NO. I THENCE NORTHERLY, with the east line of said Lot I and the west right-of-way line of Veterans Memorial Parkway, to the northeast comer of said Lot 1; THENCE WESTERLY, with the north lines of said Lot 1, to its northwest comer, said comer being also the most westerly southwest comer of said Reserve "A" of West Hill Park, Phase I — Section 2; THENCE N 07055'42"W (Plat Call), with the most northerly west line of said Reserve "A", to its northwest comer in the south line of a tract owned by the State of Texas and part of the Texas Department of Criminal Justice "Wynne Farm"; THENCE N 87023'57"E (Plat Call), with the common line of said Reserve "A" and T.D.C.J. "Wynne Farm" to the west right-of-way of Veterans Memorial Parkway and the southwest comer of a called 1.907 acre tract described in an Easement to the City of Huntsville, a concrete monument (Deed Call); THENCE N 02032'59"W (Deed Call), with the west right-of-way of Veterans Memorial Parkway and the west line of said City of Huntsville 1.907 acre Easement tract, a distance of 2080.30 feet (Deed Call) to its northwest comer in the southwest right-of-way line of Interstate Highway No. 45; THENCE SOUTHEASTERLY, with the southwest right-of-way line of Interstate Highway No. 45, to the POINT OF BEGINNING. Signed. Leonard E. Woods Reg. Prof. Land Surveyor No.2524 11 FINANCE PLAN - HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit: B 12 FINANCE PLAN — HUNTSVILLE TIRZ NO. 1 Finance Plan Exhibit: C PUBLIC INFRASTRUCTURE Item Estimated Cost $ K Water 50 Waste Water 96 Drainage 150 Demolition 250 Utility Relocations 250 Technology 950 Streets 356 SUBTOTAL Engineering/Surveying Fees (15 %) 315 Financing Costs 600 SUBTOTAL Contingency & Admin Costs (10 %) 302 TOTAL Note: Public improvement program and cost supplied by Devi 2,102 915 3,319 13 FINANCE PLAN: EXHIBIT D— Feasibility Analysis FEASIBLITY ANALYSIS August 2004 Tax Increment Reinvestment Zone No. 1 City of Huntsville, Texas FINANCE PLAN: EXHIBIT D— Feasibility Analysis INDEX K Page Index 1 Forward 2 Section I: HISTORY /CURRENT SITUATION 3 Section II: TAX INCREMENT ANALYSIS 6 Section III: EXHIBITS A. Public Infrastructure 9 B. Proposed Buildout (With TIRZ) 10 C. TIRZ Fund (With TIRZ) 11 D. Private Development (With TIRZ) 12 E. Buildout Schedule (Without TIRZ) 13 F. Development Value (Without TIRZ) 14 G. Private Development (Without TIRZ) 15 H. Sales Tax Income (Without TIRZ) 16 I. Summary of Tax Income 17 K FINANCE PLAN: EXHIBIT D— Feasibility Analysis FORWARD Schrader & Cline, LLC was asked to prepare a Feasibility Analysis using tax increment financing to encourage accelerated development and redevelopment of the Area Tax Increment Reinvestment Zone No. 1 in the City of Huntsville, Texas. This area of the City needs public infrastructure projects that will provide a stimulus for new development and redevelopment of existing facilities. Section I summarizes the history of Huntsville and discusses the current situation. Section II details the tax increment analysis. Section III contains exhibits. The following projections of development and tax revenues are subject to change. As underlying conditions in the national and regional economy change, the pace and value of new development and redevelopment projected for the TIRZ area may shift. Future property tax rates are particularly difficult to predict given their dependence on changes in the tax base, the mix of taxes levied and the various jurisdictions' overall fiscal and budgetary policies. Thus, the projected tax increments are subject to change. The analysis of future tax increment funds is dependent on a series of projections, assumptions, and other inputs; the report should be reviewed in totality. Neither this report nor its conclusions may be referred to or included in any prospectus or part of any offering made in connection with private syndication of equity, sale of bonds, sale of securities or sale of participation interests to the public without express written approval 1 Schrader & Cline, LLC Addison, Texas August 2004 3 FINANCE PLAN: EXHIBIT D— Feasibility Analysis SECTIONI: HISTORYICURRENT SITUATION HISTORY The City of Huntsville was established in 1835 or 1836 and was designated the seat of Walker County when the county was organized in 1846. At the end of its first decade, Huntsville became the site of the new Texas State Penitentiary, established by the Legislature in 1847. In 1852, Austin College was opened and later, in 1879, Austin College became Sam Houston State University. These two institutions, the Penitentiary and the University, have provided employment stability unique to most towns and even today are the two largest employers in the City of Huntsville. On the whole, the Huntsville economy remained fairly stable from the Civil War through the Great Depression. Highway development in the late 1920's and early 1930's enhanced Huntsville's position as a trade center for a significant rural area of East Texas. Beyond the two state institutions mentioned previously, lumbering, farming, livestock raising, and tourism have constituted the economic base of the city. The growth of the penitentiary system and of Sam Houston State University, the expansion of metropolitan Houston, and the development of Lake Livingston and similar attractive living areas revitalized the economy in the 1970's and 1980's. Population of the City has continued to grow, increasing from 23,936 in 1980, to 27,925 in 1990, and to the 2000 population of 35,078. Notice that the population is increasing at a more rapid rate, growing 16.7% between 1980 to 1990, but at a 25.6% rate between 1990 to 2000. This continued more rapid growth rate drives the need for more convenience retail and restaurants. CURRENT SITUATION With continued growth of the City creating a need for additional retail and restaurants, a logical location for these uses would be adjacent to the highest traffic area of the City —along Interstate 45. And, there is a large generally undeveloped 800 + -acre tract in just that area along the west side of IH 45, north of FM 1374 and south of the Veteran's Memorial Parkway intersection with IH 45. However, even though IH45 has been completed and in service for years, and utilities have been available in some areas of this tract to serve private investment, 4 FINANCE PLAN: EXHIBIT D— Feasibility Analysis these prevailing conditions have not attracted enough private investment interest to complete development of this area. Without additional public infrastructure, the opportunity for a significant infusion of new convenience retail and restaurants will be denied, and any new development will most likely be done in a piece meal fashion, one development at a time, and will occur over an extended period of time. To make this area more desirable and useable for private development, additional public infrastructure is needed. One method of funding this additional public infrastructure is through the use of a Tax Increment Reinvestment Zone (TIRZ) that would utilize real property tax revenue from new private investment as a funding mechanism. Based on the City's interest in establishing a TIRZ, a developer is proposing to develop about 40 -acres within the 805 -acre TIRZ boundary. Real property taxes from the proposed development would be utilized to repay the developer for construction of the public improvements shown in Exhibit A that are required to support the private development projects shown in Exhibit B. This proposed development would occur during the 2005 -2007 time period and would be a multi -use development of retail, restaurant, hotel and theatre. With the stimulus provided by this initial development, it is expected the remainder of the TIRZ will develop over a shorter period than would occur without benefit of the TIRZ as an incentive for development. However, none of the future development has been included in the analysis. 61 FINANCE PLAN: EXHIBIT D— Feasibility Analysis SECTIONII: TAX INCREMENT ANALYSIS This section documents the detailed analysis and inputs used to generate the tax increment revenue estimates. Tax Increment financing involves: ■ Designating an eligible redevelopment area as a tax increment financing reinvestment zone; ■ Soliciting participation of the taxing jurisdictions (County only); ■ Setting the assessment base a the level of the most recent assessment; and ■ Placing tax revenues generated by the increase in assessed value to a tax increment fund for funding public improvements. Thus, future tax increment revenues depend on four elements: ■ The timing and added value of new development; ■ Appreciation of existing land and improvements; ■ The loss of value from any existing improvements demolished to make way for new development; and ■ Future tax rates and the percentage of participation of each taxing jurisdiction. Assessment policies in Walker County generally set building assessments at 100 percent of fair market value, which may be somewhat less than construction costs for new construction. Values used in this analysis have been adjusted accordingly. Assessed values are established as of January 1 of the tax year. Thus, development in 2004 goes on the tax rolls for the Tax Year 2005. In this analysis, to be conservative, no increase in existing land value will be included and new development values have not been increased after full build -out. In addition, only taxes from increases in real property values are directed to the TIRZ Fund. Taxes from increases in business personal property and inventory values continue to flow to each taxing jurisdiction. The total year 2003 assessed value of the property within the TIRZ boundary was about $10 million. For purposes of this tax increment analysis, we have assumed that the initial assessment base for the tax increment fund will be $10 million. Taxes on this amount will 0 FINANCE PLAN: EXHIBIT D— Feasibility Analysis continue to flow to each taxing jurisdiction during the life of the TIRZ. This base tax value will be revised when the 2004 certified values become available. The TIRZ Fund generated by the incremental value of new development shown in Exhibits C and D are calculated by multiplying the incremental assessed value by the property tax rates of participating jurisdictions. Fiscal year 2003 tax rates included: JURISDICTION City of Huntsville Walker County TAX RATE PER $100 OF ASSESSED VALUE $ 0.425 $ 0.425 Over the 20 -year projection period, we have conservatively assumed that the nominal tax rates will remain constant. Taxes generated against tax year 2005 values as of January 1, 2005 are due and collected at the beginning of 2006. This analysis compares income flowing to each taxing jurisdiction both with and without the TIRZ. Without the TIRZ, new private development value over twenty years shown in Exhibits E and F will total only $34.1 million, with an associated business personal property and business inventory value of $7.5 million over the next 20 years. This development value is somewhat less than the value with the TIRZ and is projected to develop at a much slower rate than with the TIRZ. These projected incremental assessed values would yield the following tax revenues as shown in Exhibit G: JURISDICTION City of Huntsville Walker County In addition to income from the real property TOTAL 20 -YEAR TAX REVENUE $ 1,741,000 $ 2,560,000 and business personal property and inventory without the TIRZ shown above, the City and County will also benefit from sales tax income as shown in Exhibit H: JURISDICTION City of Huntsville Walker County TOTAL 20 -YEAR TAX REVENUE $ 4,584,000 $ 1,532,000 0 FINANCE PLAN: EXHIBIT D— Feasibility Analysis With the TIRZ, new private development value over twenty years as shown in Exhibits C and D will total $42.6 million with an associated business personal property and business inventory value of $9.4 million. These projected incremental assessed values would yield the following tax revenues as shown in Exhibit D: JURISDICTION TIRZ Fund City of Huntsville Walker County TOTAL 20 -YEAR TAX REVENUE $ 6,583,000 $ 578,000 $ 2,610,000 In addition to income from the real property and business personal property and inventory with the TIRZ shown above, the City and County will also benefit from sales tax income as shown in Exhibit H: JURISDICTION City of Huntsville Walker County TOTAL 20 -YEAR TAX REVENUE $ 8,882,000 $ 2,961,000 Based on this analysis, establishment of the TIRZ will provide income to the TIRZ Fund of $ 6.583 million dollars over the next twenty years, which will adequately fund the projected $3.3 million of public infrastructure projects. In addition, during the 20 -year life of the TIRZ, the City will receive about 50% more and the County will receive about 36% more tax revenue than they would have received without the TIRZ as shown in Exhibit I. Tax revenue for the first year after expiration of the TIRZ (21- years) will be $732,000 and $498,000 for the City and County respectively versus $509,000 and $404,000 that would have been received without the TIRZ. FINANCE PLAN: EXHIBIT D— Feasibility Analysis Feasibility Analysis Exhibit: A PUBLIC INFRASTRUCTURE Item Estimated Cost $ K Water 50 Waste Water 96 Drainage 150 Demolition 250 Utility Relocations 250 Technology 950 Streets 356 SUBTOTAL 2,102 Engineering/Surveying Fees (15 %) 315 Financing Costs 600 SUBTOTAL 915 Contingency & Admin Costs (10 %) 302 TOTAL 3,319 Note: Public improvement program and cost 0 FINANCE PLAN: EXHIBIT D— Feasibility Analysis Feasibility Analysis Exhibit: H SALES TAX INCOME Note —Sales Tax Based On: 1 V2% for City '/2% for County $5001 Sq. Ft. Sales For Eateries $128 /Sq. Ft. Sales For All Others Anticipated sales tax income from duplicate retail eliminated. No increase after buildout. 16 SALES TAX WITH TIRZ,$K YEAR City County Cit Count 2004 - - - - 2005 - - - - 2006 126 42 23 8 2007 452 151 53 18 2008 519 173 53 18 2009 519 173 179 60 2010 519 173 179 60 2011 519 173 179 60 2012 519 173 179 60 2013 519 173 187 62 2014 519 173 206 69 2015 519 173 296 99 2016 519 173 326 109 2017 519 173 326 109 2018 519 173 326 109 2019 519 173 371 124 2020 519 173 405 135 2021 519 173 432 144 2022 519 173 432 144 2023 519 173 432 144 TOTAL 8 882 2,961 4,584 1532 Note —Sales Tax Based On: 1 V2% for City '/2% for County $5001 Sq. Ft. Sales For Eateries $128 /Sq. Ft. Sales For All Others Anticipated sales tax income from duplicate retail eliminated. No increase after buildout. 16 FINANCE PLAN: EXHIBIT D— Feasibility Analysis Feasibility Analysis Exhibit: I SUMMARY OF TAX INCOME - $K CITY WITH TIRZ Real Property, BPP &I 578 15741 Sales (1 V2%) 8,882 4,584 TOTAL 99460 6,325 COUNTY Real Property, BPP &I 2,610 21,560 Sales ( V2%) 2,961 1,532 TOTAL 59571 4,092 In addition to the `With TIRZ" amounts above, 6 583 flows to TIRZ Fund 17 FINANCE PLAN: EXHIBIT D- Feasibility Analysis Feasibility Analysis Exhibit: G PRIVATE DEVELOPMENT 15 INCOME TO YEAR Dev Cum Value $ K * ** BPP &I Cum City, $ K Value $K * ** County, $K 2004 2005 - - - _ 2006 875 193 5 7 2007 1,755 391 9 14 2008 1,755 391 9 14 2009 10,325 2,272 54 79 2010 10,325 2,272 54 79 2011 13,575 2,983 70 103 2012 13,575 2,983 70 103 2013 14,825 3,258 77 113 2014 16,175 3,555 84 123 2015 18,175 3,994 94 139 2016 20,325 4,466 105 155 2017 23,675 5,203 123 180 2018 27,675 6,082 143 211 2019 28,525 6,268 148 217 2020 31,825 6,994 165 243 2021 34,075 7,488 177 260 2022 34,075 7,488 177 260 2023 34,075 7,488 177 260 TOTAL 34,075 7,488 1,741 2,560 * Based on BPP &I value at 22% of real property values. ** Based on tax rate of $0.425/$100 valuation on all values. * ** Based on tax rate of $0.625/$100 valuation on all values. 15 FINANCE PLAN: EXHIBIT D-- Feasibility Analysis Feasibility Analysis Exhibit: F DEVELOPMENT VALUE YEAR DEVELOPMENT VALUE, $K DEVELOPMENT CUM. VALUE $K 2004 2005 2006 875 875 2007 900 1,775 2008 - 1,775 2009 8,550 10,325 2010 - 10,325 2011 3,250 13,575 2012 - 13,575 2013 1,250 14,825 2014 1,350 16,175 2015 2,000 18,175 2016 2,150 20,325 2017 3,350 23,675 2018 4,000 27,675 2019 850 28,525 2020 3,300 31,825 2021 2,250 34,075 2022 - 34,075 2023 - 34,075 14 FINANCE PLAN: EXHIBIT D— Feasibility Analysis Feasibility Analysis Exhibit: E BUILDOUT SCHEDULE YEAR USE SIZE K/S . Ft. VALUE $K 2006 Eatery 3 875 2007 Eatery 4 900 2009 Grocery 66 8,550 2011 Retail 12 1,500 Retail 15 1,750 2013 Gas Station 5 1,250 2014 Bank 9 1,350 2015 Eatery 4 800 Eatery 8 1,200 2016 Pharmacy 16 2,150 2017 Retail 22 3,350 2018 Larger Retail 38 4,000 2019 Eatery 6 850 2020 Theatre 18 3,300 2021 Motel & Eatery 14 2,250 TOTAL 240 34,075 Note: Same uses and sizes as provided by Developer. Schedule of completion delayed. 13 FINANCE PLAN: EXHIBIT D-Feasibility Analysis Feasibility Analysis Exhibit: D PRIVATE DEVELOPMENT (With TIRZ) 12 INCOME TO YEAR Dev Cum Value $ K TIRZ Increment $K BPP&lCwn City, $ K Value $K County, $K 2004 - - 2005 15,800 - 2,730 - - 2006 34,725 134 6,894 12 49 2007 42,575 295 9,356 22 113 2008 42,575 362 9,356 32 144 2009 42,575 362 9,356 32 144 2010 42,575 362 9,356 32 144 2011 42,575 362 9,356 32 144 2012 42,575 362 9,356 32 144 2013 42,575 362 9,356 32 144 2014 42,575 362 9,356 32 144 2015 42,575 362 9,356 32 144 2016 42,575 362 9,356 32 144 2017 42,575 362 9,356 32 144 2018 42,575 362 9,356 32 144 2019 42,575 362 9,356 32 144 2020 42,575 362 9,356 32 144 2021 42,575 362 9,356 32 144 2022 42,575 362 9,356 ---'. 32 144 2023 42,575 362 9,356 32 144 202 4 1 - 362 - 32 144 TOTAL 42,575 6 583 9,356 578 2,610 Based on tax rate of $0.425/$100 valuation for City; and $0.425/$100 valuation for the County Based on BPP&I value at 22% of real property values. Based on tax rate of $0.425/$100 valuation on BPP&l values only. Based on tax rate of $0.200/$100 valuation for Real Property, and $0.625/$100 valuation on BPP&I values. 12 FINANCE PLAN: EXHIBIT D-- Feasibility Analysis Feasibility Analysis Exhibit: C TIRZ FUND (With TIRZ) YEAR DEVELOPMENT VALUE, $K DEVELOPMENT CUM. VALUE $K TIRZ FUND $K 2004 - _ 2005 15,800 15,800 _ 2006 18,925 34,725 134 2007 7,850 42,575 295 2008 - 42,575 362 2009 - 42,575 362 2010 - 42,575 362 2011 - 42,575 362 2012 - 42,575 362 2013 - 42,575 362 2014 - 42,575 362 2015 - 42,575 362 2016 - 42,575 362 2017 - 42,575 362 2018 - 42,575 362 2019 - 42,575 362 2020 - 42,575 362 2021 - 42,575 362 2022 - 42,575 362 2023 - 42,575 362 2024 - - 362 TOTAL 42,575 42,575 6,583 * Based on Tax Rates of: City $0.4251$100 County $0.425/$100 11 FINANCE PLAN: EXHIBIT D— Feasibility Analysis Feasibility Analysis Exhibit: B PROPOSED BUILDOUT SCHEDULE (With TIRZ) YEAR USE SIZE K/S . Ft. VALUE $K 2005 Grocery 66 8,550 Larger Retail 38 4,000 Retail 12 1,500 Retail 15 1,750 SUBTOTAL 131 15,800 2006 Theatre 18 3,300 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 2007 Eatery 6 850. 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 10 FINANCE PLAN: EXHIBIT D— Feasibility Analysis Feasibility Analysis Exhibit: B PROPOSED BUILDOUT SCHEDULE (With TIRZ) YEAR USE SIZE K/S . Ft. VALUE $K 2005 Grocery 66 8,550 Larger Retail 38 4,000 Retail 12 1,500 Retail 15 1,750 SUBTOTAL 131 15,800 2006 Theatre 18 3,300 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 2007 Eatery 6 850. 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 10