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ORD 2004-20 - TIRZ Bylaws, Project, Finance Plans 11-09-2004ORDINANCE NO. 2004-20 AN ORDINANCE APPROVING THE TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF HUNTSVILLE, TEXAS, BOARD OF DIRECTORS BY LAWS, PROJECT PLAN AND FINANCE 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 a preliminary Reinvestment Zone Financing Plan, and Project Plan; 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 October 13, 2004 and reviewed the Finance Plan and Project Plan, and adopted By Laws; 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 and a Reinvestment Zone Financing Plan for the Zone as described in Section 311.011, Texas Tax Code, and are submitting the plans to the City Council for its approval. The City hereby approves RMSED 6/24/04 the Project Plan (attached as Exhibit "A ") and the Reinvestment Zone Financing Plan (attached as Exhibit `B ") for the Tax Increment Reinvestment Zone Number One. Section 2. The Board of Directors for the Tax Increment Reinvestment Zone Number One has adopted a set of By Laws and are submitting such By Laws to the City Council for its approval. The City hereby approves the Tax Increment Reinvestment Zone Number One's By Laws (attached as Exhibit «C„ Section 7. 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 8. 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 -2- REVISED 6/24/04 written notice and the contents and posting thereof. PASSED AND ADOPTED this 9th day of November 2004. APPROVED this 9th day of November 2004. THE CITY OF HUNTSVILLE, TEXAS Steed Smith, Mayor Pro Tern 4TSS Danna Welter, City Secretary APPROVED AS TO RM: - '4. 60 Thomas A. LeedoyCity Kttorney -3- REVISED 6/24/04 FINAL FINANCE PLAN November 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 schchAswbell.net FINANCE PLAN — HUNTSVILLE TIRZ NO. 1 November 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 required 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 $ 2.1 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 $0.3125/$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 2004 values provided by the Walker County Appraisal District is $12,457,059 3 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 $ 12.5 2005 28.3 2006 47.2 2007 55.1 2008 55.1 2009 55.1 2010 55.1 2011 55.1 2012 55.1 2013 55.1 2014 55.1 2015 55.1 2016 55.1 2017 55.1 2018 55.1 2019 55.1 2020 55.1 2021 55.1 2022 55.1 2023 55.1 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 $0.3125 TIRZ Funds, $K Total $0.7375 2004 12.5 12.5 - - - - 2005 28.3 12.5 15.8 - - - 2006 47.2 12.5 34.7 67.2 49.4 116.6 2007 55.1 12.5 42.6 147.5 108.4 255.9 2008 55.1 12.5 42.6 181.1 133.1 314.2 2009 55.1 12.5 42.6 181.1 133.1 314.2 2010 55.1 12.5 42.6 181.1 133.1 314.2 2011 55.1 12.5 42.6 181.1 133.1 314.2 2012 55.1 12.5 42.6 181.1 133.1 314.2 2013 55.1 12.5 42.6 181.1 133.1 314.2 2014 55.1 12.5 42.6 181.1 133.1 314.2 2015 55.1 12.5 42.6 181.1 133.1 314.2 2016 55.1 12.5 42.6 181.1 133.1 314.2 2017 55.1 12.5 42.6 181.1 133.1 314.2 2018 55.1 12.5 42.6 181.1 133.1 314.2 2019 55.1 12.5 42.6 181.1 133.1 314.2 2020 55.1 12.5 42.6 181.1 133.1 314.2 2021 55.1 12.5 42.6 181.1 133.1 314.2 2022 55.1 12.5 42.6 181.1 133.1 314.2 2023 55.1 12.5 42.6 181.1 133.1 314.2 181.1 133.1 314.2 TOTAL 3,293.4 2,420.5 5,713.9 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. FINANCE PLAN - HUNTSVILLE TIRZ NO. 1 Finance Plan Exhibit: A BOUNDARY DESCRIPTION (4pp from City of Huntsville CiTY OF HUNTSVILLE, Ti;XAS Planning & Development 448 State Hwy. 75 North Huntsville, Texas 77320 '1'1-iE STATE 01, TEXAS C 011N'i`Y 0 WAI,Ki?R 1, Leonard F. 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 [lie ground survey, and is not to be used to convey or establish interests in real property except those rights and interests implied or cstablishcd 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 I of' West I-till Park, Section 4 as shown on a Plat recorded in Volume 3, page 146, flat 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 comer of said Lot 3; THENCE S 70 °06'59 "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; Tl-iCNCE S 22 °18'40 "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 67020'1 Y' 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 I of Parkwood Square to its northwest corner in the cast 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; '1'14ENCE 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; 'fHENCIs WEs,rERLY, 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; Ti IENCE 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 comer of "Unrestricted Reserve" as shown on said Plat of West Hill Park; EXHIBIT "A" Pagel of 4 Tax Increment Reinvestment Zone Number One Page City of Huntsville. \4n1kcr County. Tcxns "Tl 11;NC'17. N 3,10.11'43"W (Plat Cal I), with the common lines of said Lot 3 and Unrestricted Reserve (,['said West l fill Park, a distance of 177.46 feet (Plat Call) to the northeast corner of said Lot 3; TI II:iN('[i S 87'33'1 0"W (Plat Call), continuing with the common line of said Lot 3 and Unr"trictcd izescrve, a distance of 148.00 feet (Plat Call) to the northwest corner of said Lot 3 in the cast line ofa called 0.71 acre tract described in a Deed to Brazos - Huntsville, LP recorded in Volume 180, page 139, Deed Records of Walker County, Texas; corner; I'liENCI.; NORTHERLY, with the east line of said Brazos - Huntsville, LP tract, to its northeast TI ENCI: W13STERLY, with the north line of said Brazos- Huntsvilie, LP tract, to its northwest corner; T[ iI"NCI 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; 'I'I IENCF 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; TI II?NCE SOUTHERLY, across State Highway No. 30, to the northwest corner of Lot I, Block I (20.3565 acres) of, ' West Mill 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); 'Tl-IENCE 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 cast right -of -way line of Financial Plaza as shown on said Plat recorded in Volume 1, pagc 185, Plat Records; 1*1 I NCE SOUTI I EASTERLY, 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; TI iENCE 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, Swtdance 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 86'1 7'30"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 SOUTH 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 Decd to Sam I louston 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 tract described in a Deed to John W_ Amick recorded in Volume 200, page 518, Official Public Records; EXHIBIT "A " Page 2 of 4 I'.is Increinenl Re.investnunt Zone Number One Page C'ily of I hrrttwiIle wall -er Crnor }IV. Teas TI IFNC'I: i AST'ERLY, across interstate Highway No. 45, to the south corner of a called 1.92 ac•rc Ir:ret described in a Deed to W.T. and H.Y. Robinson recorded in Volume 172, page 174, Deed Records; TI I NC F N 60'4 3'C.-. (Deed Call), with the southeast line of said Robinson 1.92 acre tract, a distance of -563.3 ti,et ( Deets Call) to its east corner and the most westerly corner of a called 1.92 acre tract described in x C)eed to the State of Texas recorded in Volume 171, page 374, Deed Records; TI IFNCE N 6004YE (Deed Call), with the northwest line of said State of Texas 1.92 acre tract, a distance of 74.4 feet (Deed Cali) 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: 'I.1 IENCE 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); TI [INCF- N 18'1 O'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 comer on the south line of 25 "' Street and in the east line of Sam i louston State University property; TI {ENCE SOUTHEASTERLY, across Sam Houston State University property, to the north comer of Yoaakuan 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; TI IENCE 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 - 29733 feet (Plat Call) and (3) S 31 °46'03 "W - 277.51 feet (Plat Cali) to th z west corner of said 3.894 Acre Tract and the north corner of a called 2.29 acre tract described in a Des:d to Paul Vilardi, Trustee, et al recorded in Volume 353, pagc 458, Deed Records; TFIENCE SOUTHWESTERLY, continuing with the southeast line of said Sam Houston State 'T'eachers College 80 acre tract to its south corner an the east line of a called 105.13 acre tract described in a Deal to Sam Houston Normal Institute recorded an Volume 50, page 145, Deed Records; THENCE S 01 055'E- 68 varas (Deed C.dI) to the southeast corner of said Sam Houston Normal Institute 105.13 acre tract; THENCE S 87050'W (Deed Call), with the south Iine of said Sam Houston Normal Institute tract, crossing Veterans Memorial Parkway, a distani-e of 1166.2 varas (Deed Call) to an angle corner; 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 (D,.ed Call) to the west corner of same and being the south corner oi'said Sam C. Dominey 248.20 acre tract; THENCE, with the southwest and west lines of said Dominey 24820 acre tract as follows: (1) N 48 028'40 "W - 715.72 feet (Deed Call) (2) N 22044'37"E- 663.18 feet (Deed Call) EXHIBIT "A" Page 3 of 4 1'ns lacrenn-ni Reinvesinient lone Nttmher One fa -e City of I Inntsvilir W;Acr Counar, Texas t.+l',; (} °52'45 "tw'• 510.44 fect (Deed Cal h and (4) N 02"27'14­W- W- 4709.41 feet (Deed Call) to [lie northwest corner of said Dominey 245.20 acre Irtcl and the southwest corner of said West Hill Subdivision, Section One-, Tl ll,*N(:1.i N 02 °36'5513 (Plat Call), with the west line of said West Hill Subdivision, Section One. s distance of 1995.58 feet (Plat Call) to its northwest corner in the south right -of -way tine of state Highway No. 30, '1'1 l F'NC1 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 200.110 feet (Plat Call) to the west ri,,,hl -ol way line of Veterans Memorial Parkway; THENCE NORTHERLY, across State Highway No. 30, to the southeast corner of Lot I as shown on said Plat of West (dill Park, Phase I — 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 oil said Plat recorded in Volume 3, page 53, Plat Records; THENCE NORTHERLY, with the east line of said Lot 1 and the west right -of -way line of* Veterans Memorial Parkway, to the northeast comer of said Lot 1; TI IFNCF, 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 I — Section 2; THENCE N 07 °55'42 "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 "; Tl-Ii NCE N 87 °23'57 "E (Plat Call), with the common line of said Reserve "A" and T.D.C.1. "Wynne Farm" to the west right -of -way of Veterans Memorial Parkway and the southwest comer of a called 1.907 acre tract descrihed 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 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 C'\C0H04 \PS\TIRZ1 \TIRZ_t .tns.d0c EXHIBIT "A" Page 4 of-4 FINANCE PLAN - HUNTSVILLE TIRZ NO. 1 Finance Plan Exhibit: B [Insert PROPERTY BOUNDARY MAP] from CITY OF HUNTSVILLE 10 i - LIT SCALE I" = 1,000 FEET TAX INCREMENT REINVESTMENT ZONE NUMBER ONE Y —T T 7 Tn TT n 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 Streets 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 11 FINANCE PLAN: EXHIBIT D— Feasibility Analysis FINAL FEASIBLITY ANALYSIS November 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 schc1Ki)swbe11.net 1 FINANCE PLAN: EXHIBIT D— Feasibility Analysis INDEX 2 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 2 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 a WE.Ll Schrader & Cline, LLC Addison, Texas November 2004 N 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 Repression. 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 and just south of State Highway 30. 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, these prevailing conditions have not attracted enough private M FINANCE PLAN: EXHIBIT D— Feasibility Analysis 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. G1 FINANCE PLAN: EXHIBIT D— Feasibility Analysis SECTION II: 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 2004 assessed value of the property within the TIRZ boundary was $12,457,059. For purposes of this tax increment analysis, we have assumed that the initial assessment base for the tax increment fund will be $12,457,059. Taxes on this amount will continue to flow to each taxing jurisdiction during the life of the TIRZ. 0 FINANCE PLAN: EXHIBIT D— Feasibility Analysis 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 $ 0.3125 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 TOTAL 20 -YEAR TAX REVENUE $ 1,741,000 $ 2,560,000 from the real property 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 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 19 FINANCE PLAN: EXHIBIT D— Feasibility Analysis 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 $ 5,711,000 $ 578,000 $ 3,482,000 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 $ 5.711 million dollars over the next twenty years, which will adequately fund the projected $2.1 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 57% more tax revenue than they would have received without the TIRZ as shown in Exhibit I. Tax revenue (excluding sales tax) 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 Item Water Waste Water Drainage Demolition Utility Relocations Streets Feasibility Analysis Exhibit: A PUBLIC INFRASTRU TI1RF SUBTOTAL Engineering /Surveying Fees (15 %) Financing Costs SUBTOTAL Contingency & Admin Costs (10 %) TOTAL Note: Public improvement program and cost Estimated Cost $ K 50 96 150 250 250 356 ed 173 600 193 1,152 773 2,118 G� 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 IM 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 34,725 117 2007 7,850 42,575 256 2008 - 42,575 314 2009 - 42,575 314 2010 - 42,575 314 2011 - 42,575 314 2012 - 42,575 314 2013 - 42,575 314 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 5,711 * Based on Tax Rates of: City $0.425/$100 County $0.3125/$100 11 FINANCE PLAN: EXHIBIT D-Feasibility Analysis Feasibility Analysis Exhibit: D PRIVATE DEVELOPMENT (With TIRZ) INCnMV TO YEAR Dev Cum Value $ K TIRZ Increment $K BPP&ICUM City, $ K Value $K County, $K 2004 - - 2005 15,800 - 2,730 - - 2006 34,725 117 6,894 12 66 2007 42,575 256 9,356 22 152 2008 42,575 314 9,356 32 192 2009 42,575 314 9,356 i 32 192 2010 42,575 314 9,356 32 192 2011 42,575 314 9,356 32 192 2012 42,575 314 9,356 32 192 2013 42,575 314 9,356 32 192 2014 42,575 314 9,356 32 192 2015 42,575 314 9,356 32 192 2016 42,575 314 9,356 32 192 2017 42,575 314 9,356 32 192 2018 42,575 314 9,356 32 192 2019 42,575 314 9,356 , 32 192 2020 42,575 314 9,356 32 192 2021 42,575 314 9,356 32 192 2022 42,575 314 9,356 i 32 192 2023 42,575 314 9,356 32 192 2024 - 314 - 32 192 TOTAL 42,575 5,711 9,356 578 1 3,482 Based on tax rate of $0.425/$100 valuation for City; and $0.3125/$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&I values only. Based on tax rate of $0.3125/$100 valuation for Real Property, and $0.625/$100 valuation on BPP&I values. 12 FINANCE PLAN. EXHIBIT D— Feasibility Analysis Feasibility Analysis Exhibit: E BUILDUUT SCHEDULE (Without TIRZ) 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 Lar er 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: F DEVELOPMENT VALUE (Without TIRZ) YEAR DEVELOPMENT VALUE, $K DEVELOPMENT CUM. VALUE $K NO TIRZ FUND $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: G PRIVATE DEVELOPMENT (Without TIRZ) 15 I INCOME TO YEAR Dev Cum Value $ K NO TIRZ Increment $K BPP&ICum i 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 i 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 7,4$8 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/$100 valuation on all values. 15 FINANCE PLAN: EXHIBIT D— Feasibility Analysis Feasibility Analysis Exhibit: H SALES TAX INCOME (Without TIRZ) YEAR SALES TAX WITH TIRZ,$K SALES TAX WITHOUT TIRZ, $ K City County city County 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 1,532 Note —Sales Tax Based On: 1 '/z % for City 1/2% 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. 101 FINANCE PLAN: EXHIBIT D— Feasibility Analysis Feasibility Analysis Exhibit: I SUMMARY OF TAX INCOME - $K CITY WITH TIRZ WITHOUT TIRZ Real Property, BPP &I 578 19741 Sales (1 1/2%) 802 41584 TOTAL 9,460 6,325 COUNTY Real Property, BPP &I 3,482 2,560 Sales ( 1/2%) 29961 1,532 TOTAL 6,443 4,092 In addition to the `With TIRZ" amounts above, $5,711 flows to TIRZ Fund. 17 FINAL PROJECT PLAN November 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(- )swbell.net PROJECT PLAN — HUNTSVILLE TIRZ NO. 1 November 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 and County. 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 Insert Exhibit "A" From City of Huntsville (4 pages) BOUNDARY DESCRIPTION CITY OF HUNTSVILLE, TEXAS Planning & Development 448 State Hwy. 75 North Huntsville, Texas 77320 'i'I11: ti'1'A'fl tN "rl'sXAS ('(_)l IN`1`Y t71' WAl.KI',I: § 1. Lconard F, Woods, Itegistercd Profi'ssional Land Surveyor No. 2524. do hereby ccriily 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 if) convey or establish interests in real property except those rights and interests implied or csiablished by tilt: creation or reconfiguration of the boundary of the political subdivision for which it was prepared. TAX 1NCREIk1ENT REINVESTMENT ZONE NUAfRER ONE Being .1 parccl of land containing approximately 805 acres, within the corporate limits of'the. City ul, I itrrtts 6llc, situated in the LEWIS COX LEAGUE. Abstract No. 13, the PLEASANT GRAY LU'AGtll-„ Abstract N«. 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 heing 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 t..ot f 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 tiro northeast fines of Lots 1, 2,4 and 3 of said West Hill Park, Section 4 to the east corner of'said Lot 3; 11IFNCE 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 comer 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; Tl IENCE S 22018'40 "E (Plat Call), with a west line of said Boxcars Properties, LTD tract, a distance of 355.65 feet (Plat Cal I) to the its southwest corner and a reentrant corner of said Reserve "A "; T IENC:I_: N 67'20'13"E (Plat Call), with the most easterly north fine 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; TI IENCE SOUTHEASTERLY, with the southwest right -of -way line of Interstate Highway No. 45 to tine 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 EAS'rE-RLY, with the north lines of said Lot I 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 Volunrc 2, page 189, Plat Records; THENCE. SOUTHERLY, with tine east right-of-way line of said West Hill Park Circle, to a point in the north right -of -way tine of State I-tighway No. 30; THENCE NCE WESTERLY, with the north right -of -way tine of State Highway No. 30, to its intersection With the west right -of -way line of said West Hill Park Circle; Tl 1FNCi: NUR"1 [ii:RLi', with the west right -of -way line of said West Hill Park Circle to a point on the north side of ,1 Cull `D Sac of said West Hill Park Circle and being a easterly corner of Lot 3 (1.85 acre.) antl a souttreriy corner (if "Unrestricted Reserve" as shown on said Plat of West Hill Park; EXHIBIT "A" Page I of 4 I :n lire rcni ni I\cinvl5tmelll Zone Nrrmtler One I'a-C t i 11 N(TI N 31 ":,1'43 "W (flat Call), with the ccn7urton lines of said Lot 3 and l IZe =;crvc• nts:ri(I U'e.;l I lilt Park, a distance o1" 177,46 feet (Plat Call) to the northeast currier of said hii 3; i'l II :N(TS 87 °3 3` 10 "W (Plat Cal I), continuing with the common line of said Lot 3 Mid i lnrestrictcd Pcscrvc. ;�. distance of 148.00 feet (Plat Call) to [lie northwest corner of said Lot 3 in the cast line of a called 1,•71 acre tract described in a Deed to Brazos - Huntsville, LP recorded in Volume 180, page 139, Decd Records of' Walker County, Texas; TI II:N(T N)RTi-rERLY, with the cast line of said Brazos- I-Iuntsvilie, LP tract, to its northeast cm rter-, F] I1;,N(I: WFSTF -AZLY, with the north line of said Brazos- l-luntsvillc, IA' tract, to its northwest corrtcr; '1'111 -:N(T SOI ITiIE:RLY, with the west line ofsaid Brazos- l- tuntsvillc, LP tract., to its southwest corner in the north right-of'-way litre of State i-tighway No. 30 -, TI 1EINCE WESTERLY, with the north right-of-way line of Stale Highway No. 30, to the southeast corner ol' I:escrve "A" (8.91 acres) as shown on a Plat of West Mill Park, Phase 1 - Section 2 rccoided in Vr }lunic 3_ gage 53. flat Records; 'I l I I ,N('L, SOUT) I1 RLY, across Stale Highway No. 30, to the northwest corner of Lot I. l3lock I (20_3565 acres) of West I fill Subdivision, Section One as shown on a Plat recorded ill Voluntc 1, page 185, Plat lZccords, said corner lacing in the cast right -of -way of Veterans Memorial Parkway (called West l lills Drive on said flat recorded in Volume 1, page 185, Plat Records); 'f1 IFNCL: SOUTHERLY. with the cast 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); "fl-IINCf? NORTHEASTERLY, with the north right -of -way of Col. Etheredge Boulevard, to its intersection with the east right- o(=way line of Financial Plaza as shown on said Plat recorded in Volume 1, page 185, Plat Records: I'l I}.?NCEI SOUTHEASTERLY, with the east right-of-way line of Financial Plazn, to the southwest corner of t,ot 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 248.1)2 acre tract describcd in a Decd to Sarn Dominey recorded in Volume 90, page 488, Official Public Records; TI IENCF 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, Swtdance Ranch, Section One as shown on a Plat recorded in Volume 3, page 76, Plat Records; TI I] -'NCE 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 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; Tl IENCU' N 86'17`30 "W (Plat Call), with the south line of said Lot 2A and the north line of said MNC Realty, 1,11 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 I Iighway No, 45; 1'1113NC1: SOUTHEASTERLY, with the southwest right -of -way tine of interstate i-[ighway No. 45, cros:tiing Senither Drive, to its intersection with the northwest line of a called 80 acre tract described is a t7cccl to faun I IntlStnn State'l-eachers College recorded in Volume 55, page 547, Deed Records, said point being also the most easterly corner of a called 125,35 acre tract described in a Deed to John W. Amick recorded in Volume 200, pace 518, Official Public Records; EXHIBIT "A" Page 2 of 4 I,c< Inrrcmrnl Rcinvcsanenl Zonc NtnnberOnc. Page ('ilc ul I lunlsville t';;ilkrr !'nunly. I rem; II II:N('Il li; \ti IFRI.l across Interstate i Iighway No. 45, to the. south corner ofa caIICd I.')_' aer(, Ir:icl dt'scrihcd in a I )red to) W "'- anel 1i.)'. Rohinson recorded in Volume 172, pare 174, I)CC(l RCTllyd.';; 1 I II .N(•I . N 00'4V1.: (I)eccl (fall), will, the. southeast line of'said Rohinson I .Q-) acre tI -:ICI, ❑ (Ii sl:uuc feel (Deed Fall) to its cast corner and the most westerly corner of a callcd 1 .92 acre tract dcscrihcd in :I Decd to the Stale of'frxas recorded in Volume 171, page 374, Deed Records; I I fl -NC l: N 60°43'1; (Deed Call), with the northwest line of said State of'fexas 1.92 acre Iraq, a distance. of 74,8 Icet (Deed Call) to an angle corner; T1 IF;NCi: N 05024'1; (Deed Call), with the west line of said State of "Texas 1.92 acre tract-1 distance of 941.6 feel (Decd Call) to its north comer: I'I fi;NC'I -. S 64025'1: (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. A] ford recorded in Voltnnc 451, pare. 551, Official Public Records, a 6" diameter steel fence comer post (Deed ('all); I'1 II!!NC,F N 18 °10'E (Deed Cal I), with the east line of said Alford 0.466 acre tract, a distance of 270.50 feet (Decd Call) to its northeast corner on the south line of 25`I' Street and in the east line of Sam I louston State University property; hi II ?NC:E SOUTIIEASTERLY, 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); TI II;NCi 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; Ti IENCi' SOUTHWESTERLY, across Interstate Highway No. 45, to the north corner of Goldenhcadcd Cane Associates, LTD 3.894 Acre Tract subdivision as shown on a Plat recorded in Volume 3. page 97, Plat Records, said comer being in the southeast line of said Sam Houston State Teachers College 80 acre tract; TI IENCE SOUTHWESTERLY, with the s(utheast line of said Sam Ilouston Stale Teachers College 80 acre tract and the northwest line of said 3.894 Acre Tract as follows: ( I ) S 35 °53'58 "W - 128.54 feet (Plat Call) (2) (2) S 32 °24'05 "W - 297.33 feet (Plat Call) 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 it called 2.29 acre tract described in a Det;d to Paul Vilardi, Trustee, et ai recorded in Volume 353, pare 458, Decd Records; T1If:NCF; SOUTHWESTERLY, continuing with the southeast line of said Sam i-louston State 'I enchers College 80 acre tract to its south corner ;n the cast line of a called 105.13 acre tract described in a Deed to Sam l louston Normal Institute recorded to Volume 50, page 145, Deed Records; TIIENCE S 01 °55'E- 68 varas (Deed Call) to the southeast corner of said Sam i louston Normal Institute 105.13 acre tract; Tl I I - `NCE S 87050'W (Deed Call), with the south line of said Sam ]-louston Normal Institute tract, crossing Veterans Memorial Parkway, a distatr;e of 1166.2 varas (Deed Call) to an angle comer; T1 IFNCE N 570 10'W (Deed Call), with the southwest line of said Sam Houston Normal Institute 105.13 acre tract, a distance of 346.3 varas (D,.ed Call) to the west corner of same and being the south corner ol'saitl Sam C. i)omincy 248.20 acre tract; TI iENCG 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 ?2^44'37"17- 663.18 feet (Deed Call) EXHIBIT "n" Page 3 of 4 I;r: I�urcnr,:nr (taunrsinrcnl `LoncNumherChu. r'il�, ul I Inni�;t�illc 510AII fret (Deed Cali) M ;nd (4) i'•± ti_ " "7 I t '1V'- 4700.4 -1 lect (Dcctl (;'all ( to the northwcsf Corner oI,mid I?+nnincv 2,18, 20 acnc II;it I Ind Ihc solidmcsl z:orncr (if -s;1id West i lilt Suhciivision. Section One: T111 Nt'1': N 02'36'55 "1? (Plat Call), with the west line of'said Wrest Hilt Subdivision, Section 011C.:1 di: ;l;urrcof 1997 .55 feel (Plat Call) to its northwest corncr in the south right -of -way line of Slaty I li.Lhwav Ni), ;M: 1*1 iFNCI: N 86'44'46-F ('flat Call), with the north line of said West 11111 SUhdiViSIOIL ,`SCctiulr One ;111(1 the south right -of-way line of State Highway No. 30, a distance of 200.00 feet (Plot Call) to tile west ri dil- of -wav line of Veterans Memorial Parkway; 'I'l II .N0-* N01ZTI [I::RI,,Y, across State I- iighway No. 30, to the southeast corner of Lot i as shown Ito ,;:iid Plat (If' W'cst I fill Park, Phasc I — Section 2 recorded in Volume 3, page 53, Plat. Records, said corncr heing also in the west. right -of -way line of Veterans Memorial Parkway; formerly called West I ]ills Drive on said Plal recorded in Volunie 3, page 53, Plat Rccords; T[ 11?NCF'l NOR11IFRLY, with the east line of said Lot I and the west right -of -way fine of Veterans Memorial P;irkway, to the northeast comer of said Lot 1. I'f ll :NC'r. WfiSTERLY, with the north lines of said Lot 1, to its northwest corner, said corncr being also the most westerly southwest corner of said Reserve "A" of West Hill Park, Phase I -- Section 2, TI II,NCl: N 07 °55'42 "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 harm "; 'I FIFNCE N 137 °23'57 "E (Plat Call), with the common line of said Reserve "A" and T.D.C.J. "Wynne Fans" to the west right- of-way of Veterans Memorial Parkway and the southwest corner of a called L907 acre tract described in an Easement to the City of Huntsville, a concrete monument (Deed Call); TI i13NCI N 02 °32'59 "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 (all) to its northwest corner in the southwest right -of -way line of Interstate Highway No. 45; THENCE SOUTHEASTERLY, with the southwest right -of -way fine of Interstate Highway No. 45, to tilePOINTOI' BEGINNING. C 1COh104lrSITIRZ7\TIRZ_1.tns.doc Signed Leonard E. Woods Reg. Prof. Land Surveyor No.2524 FIXi-111.3FF "A„ 11,I11e 4 c71'd PROJECT PLAN — HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit: B [Insert Boundary Map from City of Huntsville) SCALE 1" 1,000 FEET TAX INCREMENT REINVESTMENT ZONE NUMBER ONE F.YT4TRTT 'R PROJECT PLAN — HUNTSVILLE TIRZ NO.1 Project Plan Exhibit: C [Insert Existing Land Use Map from City of Huntsville) PROJECT PLAN- HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit; C 9 PROJECT PLAN — HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit: D [INSERT PUBLIC IMPROVEMENT MAP] CITY OF HUNTSVILLE Provided by Curtis Development 10 PROJECT PLAN-HUNTSVELLE TIRZ NO. 1 ect Plan Exhibit: D tot, lool 49, Ow ---------- ------------------ MAW VWw - - - - - - - - - - - - - - - - - - 10 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 Streets 356 SUBTOTAL 1,152 Engineering /Surveying Fees (15 %) 173 Financing Costs 600 SUBTOTAL 773 Contingency & Admin Costs (10 %) 193 TOTAL 2,118 Note: Public improvement program and cost 11 PROJECT PLAN — HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit: F [ Insert FUTURE LAND USE MAP] CITY OF HUNTSVILLE Provided by Curtis Development 12 PROJECT PLAN- HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit: F 12 City of Huntsville Huntsville Tax Increment Reinvestment Zone No. 1 BYLAWS ARTICLE I POWERS AND PURPOSE Section 1. Financing Development or Redevelopment in the Zone. In order to implement the purposes for which Tax Increment Reinvestment Zone No. One, City of Huntsville, Texas (the "Zone ") was formed, as set forth in Ordinance No.2004 -08 -03.1, dated August 3, 2004, creating the Zone, the City of Huntsville, Texas (the "City ") may issue obligations to finance all or part of the cost of implementing the "project plan" for the Zone as defined in the Tax Increment Financing Act of the Tax Code, Chapter 311, Vernon's Texas Codes Annotated (the "Act" Section 2. Books and Records: Approval of Programs and Financial Statements. The Board of Directors shall keep correct and complete books and records of account and shall also keep minutes of its proceedings and the proceedings of committees having any of the authority of the Board of Directors. All books and records of the Zone may be inspected by any director or his agent or attorney for any proper purpose at any reasonable time; and at all times the City Council and the City Auditor will have access to the books and records of the Zone. The City Council must approve all programs and expenditures for the Zone and annually review any financial statements of the Zone. ARTICLE II BOARD OF DIRECTORS Section 1. Powers, Number, and Term of Office. The property and affairs of the Zone shall be managed and controlled by the City Council based on the recommendations of the Board of Directors of the Zone ( "Board of Directors" or "Board "), subject to the restrictions imposed by law, the ordinance creating the Zone, and these Bylaws. It is the intention of the City Council that the Board of Directors shall function only in an advisory or study capacity with respect to the Zone and shall exercise only those powers, advisory in nature, which are either granted to the Board pursuant to the Act or delegated to the Board by the City Council. The Board of Directors shall consist of seven (7) directors: three (3) of whom shall be appointed by the City Council of the City; three (3) appointed by the governing body of Walker County Bylaws Huntsville TIRZ No. 1 Page I (County); and one (1) appointed by the governing body of the Huntsville Independent School District (School); provided however, that if a taxing unit (other than the City) waives its right to appoint a member to the Board, as evidenced by written resolution duly adopted by the governing body of such taxing unit, the City may appoint such Board member in its stead. The directors appointed to odd - numbered positions shall be appointed for two year terms, beginning on August 3, 2004, while the directors appointed to even - numbered positions shall be appointed to a one year term, beginning on August 3, 2004. All subsequent appointments shall be for two -year terms, or until their successors are appointed by the respective governing bodies. Any director may be removed from office by the City Council for cause deemed by the City Council as sufficient for their removal in the interest of the public, but only after a public hearing before the City Council on charges publicly made, if demanded by such Board member within ten (10) days. In the event of a vacancy caused by the resignation, death, or removal for any reason, of a director, the governing body of the respective taxing unit (i. e. City, County, School) which made such Board appointment shall be responsible for filling the vacancy. Section 2. Meetings of Directors. The directors shall hold their meetings within a public building in the City as the Board of Directors may from time to time determine. Section 3. Regular Meetings. Regular Meetings of the Board of Directors shall be held at such times and places as shall be designated, from time to time, by resolution of the Board of Directors. All meetings of the board shall be of a public nature unless pertaining to matters of land purchase, security, personnel, or strictly legal matters. Notice of all regular and special meetings of the Board and any committees thereof shall be posted in accordance with the provisions of Chapter 551, Texas Government Code. There shall be at least one Regular Meeting held each year in the month of December. Section 4. Emergency Meetings. Emergency Meetings of the Board of Directors shall be held whenever called by the chairman, by the secretary, by a majority of the directors then in office or upon advice of or request by the City Council. The secretary shall give notice to each director of each Special Meeting in person, or by mail, courier, facsimile, telephone or e -mail, at least twenty -four (24) hours before the meeting. Notice of all Emergency Meetings shall state the purpose which shall be the only business conducted. Section 5. Quorum. A majority of the directors holding current appointments shall constitute a quorum for the consideration of matters pertaining to the purposes of the Zone. The act of a majority of the directors present at a meeting at which a quorum is in attendance shall constitute the act of the Board of Directors, unless the act of a greater number is required by law. Bylaw Huntsville TIRZ No. I Page 2 Section 6. Conduct of Business. At the meetings of the Board of Directors, matters pertaining to the purposes of the Zone shall be considered in such order as from time to time the Board of Directors may determine. At all meetings of the Board of Directors, the chairman shall preside and in the absence of the chairman, the vice chairman shall exercise the power of the chairman. The secretary of the Board of Directors shall act as secretary of all meetings of the Board of Directors, but in the absence of the secretary, the presiding officer may appoint any person to act as secretary of the meeting. City staff shall provide notice of meetings and prepare meeting agendas. Within five days following each Regular and Emergency Meeting, a copy of the minutes of the meeting shall be submitted to the City Secretary of the City. Section 7. Compensation of Directors. Directors as such shall not receive any salary or compensation for their services, except that they shall be reimbursed for their actual reasonable expenses incurred in the performance of their duties hereunder. Section 8. Attendance. Board members shall make every effort to attend all Regular and Special meetings of the Board and/or Committees. The City Council may replace a City appointee of the Board or request replacement of an appointee from other taxing jurisdictions for non-attendance at three consecutive meetings. F.'VX'4KW*ffI Section 1. Titles and Term of Office. The officers of the Zone shall consist of a chairman, a vice chairman, a secretary, and such other officers as the Board of Directors may from time to time elect or appoint; provided however that the City Council shall, on an annual basis, appoint the chairman whose term shall begin on August 3. One person may hold more than one office, except that the chairman shall not hold the office of secretary. Terms of office for officers, other than the chairman, shall not exceed two years. All officers, other than the chairman, shall be subject to removal from office, with or without cause, at any time by a vote of a majority of the entire Board of Directors. A vacancy in the office of any officer, other than the chairman, shall be filled by a vote of a majority of the directors. Section 2. Powers and Duties of the Chairman. The chairman shall be the chief executive officer of the Board of Directors and, subject to the approval of the City Council, he/she shall be Bylaws Huntsville TIRZ No. 1 Page 3 in general charge of the properties and affairs of the Zone and shall preside at all meetings of the Board of Directors. Section 3. Vice Chairman. The Vice chairman shall be a member of the Board of Directors, shall have such powers and duties as may be assigned to him by the Board of Directors and shall exercise the powers of the chairman during that officer's absence or inability to act. Any action taken by the vice chairman in the performance of the duties of the chairman shall be conclusive evidence of the absence or inability to act of the chairman at the time such action was taken. Section 4. Secretary. The secretary shall keep the minutes of all meetings of the Board of Directors in books provided for the purpose, he /she shall have charge of such books, records, documents and instruments as the Board of Directors may direct, all of which shall at all reasonable times be open to inspection, and he /she shall in general perform all duties incident to the office of secretary subject to the control of the City Council and the Board of Directors. The function of Secretary may be performed by City Staff. Section 5. Compensation. Officers as such shall not receive any salary or compensation for their services, except that they shall be reimbursed for their actual reasonable expenses incurred in the performance of their duties hereunder. Section 6. Staff. Staff functions for the Board of Directors may be performed by the City Manager and his designees. ARTICLE IV PROVISIONS REGARDING BYLAWS Section 1. Effective Date. These Bylaws shall become effective only upon the occurrence of the following events: (1) The adoption of these Bylaws by the Board of Directors, and (2) The approval of these Bylaws by the City Council. Section 2. Amendments to Bylaws. These Bylaws may be amended by majority vote of the Board of Directors, provided that the Board of Directors files with the City Council and Commissioners Court a written application requesting that the City Council and Commissioners Court approve such amendment to the Bylaws, specifying in such application the amendment or amendments proposed to be made. If the City Council and Commissioners Court by appropriate ordinance or order finds and determines that it is advisable that the proposed amendment be made, authorizes the same to be made and approves the form of the proposed amendment, the Board of Directors shall proceed to amend the Bylaws. Bylaws Huntsville TIRZ No. I Page 4 After consultation with the Board of Directors, the Bylaws may also be amended at any time by the City Council by adopting an amendment to the Bylaws by resolution of the City Council and delivering the Bylaws to the secretary of the Board of Directors. Section 3. Interpretation of Bylaws. These Bylaws and all the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein. If any word, phrase, clause, sentence, paragraph, section or other part of these Bylaws, or the application thereof to any person or circumstance, shall ever be held to be invalid or unconstitutional by any court of competent jurisdiction, the remainder of these Bylaws and the application of such word, phrase, clause, sentence, paragraph, section or other part of these Bylaws to any other person or circumstance shall not be affected thereby. ARTICLE V GENERAL PROVISIONS Section 1. Notice and Waiver of Notice. Whenever any notice whatsoever is required to be given under the provision of these Bylaws, said notice shall be deemed to be sufficient if given by depositing the same in a post office box in a sealed postpaid wrapper addressed to the person entitled hereto at his post office address, as it appears on the books of the Zone, and such notice shall be deemed to have been given on the day of such mailing. Attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the express purposes of objecting to the transaction of any business on the grounds that the meeting is not lawfully called or convened. A waiver of notice in writing signed by the person or persons entitled to said notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. Section 2. Resignations. Any director or officer may resign at any time. Such resignation shall be made in writing and shall take effect at the time specified therein, or, if no time be specified, at the time of its receipt by the City Council. The acceptance of a resignation shall not be necessary to make it effective, unless expressly so provided in the resignation. Section 3. Approval or Delegation of Power by the City Council. To the extent that these Bylaws refer to any approval by the City, such approval of delegation shall be evidenced by a certified copy of an ordinance, or resolution (if permissible), duly adopted by the City Council. Bylaw Huntsville TIRZ No. 1 Page 5