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ORD 2010-33 - TIRZ #1 Amend Project Plan 01-17-2012 P172 ORDINANCE NO.2010-33 AN ORDINANCE APPROVING THE TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF HUNTSVILLE, TEXAS, AMENDED PROJECT PLAN AND REVISIONS TO THE REINVESTMENT ZONE FINANCING PLAN; AND CONTAINING FINDINGS AND PROVISIONS RELATED TO THE FOREGOING SUBJECT. WHEREAS, pursuant to Chapter 311 of the Texas Tax Code, the City designated a contiguous geographic area within the City as Tax Increment Reinvestment Zone Number One; and WHEREAS,the City prepared and adopted a Reinvestment Zone Financing Plan,and Project Plan on November 9, 2004, and amended same on December 13, 2005 and April 24, 2007; and WHEREAS, the City on January 20, 2009 approved Ordinance 2009-15 amending the Project Plan and revising the area of the TIRZ from approximately 805 acres to 68.3976 acres,the area of the proposed Ravenwood Village development; and WHEREAS, the City Council desires to amend the Project Plan and revise the Reinvestment Zone Financing Plan for Tax Increment Reinvestment Zone Number One-Huntsville, Texas; NOW,THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE,TEXAS: Section 1. In anticipation of Council's desired amendments and revisions, City Staff has 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 is submitting amendments and revisions to the plans to the City Council for its approval. The City hereby approves the amended Project Plan (attached as Exhibit "C") and the revisions to the Reinvestment Zone Financing Plan(attached as Exhibit"D")for the Tax Increment Reinvestment Zone Number One- Huntsville, Texas. Section 2. The Designation of the reinvestment zone established in the Ordinance creating Tax Increment Reinvestment Zone Number One is hereby redesignated as the area described in Exhibits "A and B" attached hereto. Section 3. 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. Attachment(s): P171 . Ordinance . Boundary description . Project Plan • Finance Plan Recommendation motion(s): ...... .... _. . ............. ..._......... ........... Approve Ordinance 2010-33 as submitted. _ MOTION: SECOND: F VOTE: I PRESENTED I APPROVED I" DECLINED ACTION f^ TABLED 1 OTHER P173 Section 4. 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. First Reading before City Council on May 4th 2010. Second Reading on January 17,2012 PASSED AND APPROVED THIS 17th of January 2012. CITY OF HUNTSVILLE,TEXAS M c Woodw d,Mayo ATTEST: Lee o war , ity Se ary APPROVED AS TO FORM: eo d Schneider, City Attorney TIRZ Boundary Addition D 'I m I A O,A -0 22ND ST O� �� 23RD ST o� oma, �o Current TIRZZ 68.3976 Acres •o �o ,o J 4a Total - 79.80 Acres QCurrent Boundary Boundary Addition June 17,2011 SMl.TMERrDR � Mep CrsaUd By ary or nunnvine oacuiwcs.ra.•ru x. —ei.px+w..F x•r•xa+•..—wr••x �pUcls ONislon .a .•w..••.wn••�a.ca...•wx.�..a ' 936-2945781 •a•�—w moi.s.w r�rw~Fx u•w«•i aw,ap.«•ae•w emexsne�n vM'w.hunlsvillagls.com a"`xw`n:,.-a.ai.•cn a—iw�M.:�.n�•.,�.,:n:w.u.r rw<u.a w•.wa.•a P175 PROJECT PLAN April 2010 (Revised) Tax Increment Reinvestment Zone No. 1 City of Huntsville, Texas i t SCHRADER & CL C i George R. Schrader Larry D. Cline 4800 Broadway, Ste A Addison,TX 75001 972-661-1973 schchaswbelLnet P 17 6 PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 April 2010 The City of Huntsville, Texas established a Tax Increment Reinvestment Zone ("TIRZ") in August 2004 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 original TIRZ consisted of approximately 805 acres. Since creation of the TIRZ, there have been a number of changes to the Project Plan and subsequently to the TIRZ boundary. A summary of the changes follows: As noted above, at its meeting on August 3 2004 the Huntsville City Council approved Ordinance No. 2004-16 creating Tax Increment Reinvestment Zone No. 1 (TIRZ). The TIRZ encompassed an area of approximately 805 acres, generally along the west side of IH45 and south of SH30. The term of the TIRZ is 20 years. The public infrastructure Project Plan at the time of creation was for a total of$3,319,000 (Exhibit A). At its meeting on November 9,2004,the City Council approved the Final Project Plan. The Final Project Plan revised the public infrastructure Project Plan from the Preliminary$3,319,000 to the Final total of$2,118,000 (Exhibit B &Q. This change from the Preliminary Project Plan to the Final Project Plan eliminated the $950,000 estimate for Technology plus 15%for Engineering/ Surveying Fees and 10% for Contingency&Admin costs for the Project 1 (A) West Hills Park. At its meeting on December 13, 2005, the City Council approved Ordinance 2005-12, an amendment to the public infrastructure Project Plan which revised the total from$2,118,000 to $4,569,000 (Exhibit D &E). This change added Project 2 (B) Bearkat Crossing for$2,451,000 to Project 1 (A)West Hills Park. 2 PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 P 17 7 At its meeting on April 24, 2007, the City Council approved Ordinance 2007-14, an amendment to the public infrastructure Project Plan which revised the total to $12,421,000 (Exhibit F &G). This amendment eliminated Project 2 (B) Bearkat Crossing, a total of$2,451,000 and added two new projects-- Ravenwood Village for a total of$8,303,000 and Transportation Projects for a total of$2,000,000. At its meeting on January 20, 2009, the City Council approved Ordinance 2009-15, an amendment to the public infrastructure Project Plan which revised the total to $5,823,000 (Exhibit H &1). This amendment eliminated Project 1 (A)West Hills Park, a total of$2,118,000 and reduced the total of Ravenwood Village from $8,303,000 to $3,823,000 by eliminating the $4,480,000 residential portion of the project. City Council approval of Ordinance 2009-15 also revised the area of the TIRZ from approximately 805 acres to 68.3976 acres, the area of the proposed Ravenwood Village development. At its meeting on April 20, 2010, the City Council revised the public improvement Project Plan and made some minor adjustments to the TIRZ boundary. The proposed Project Plan was revised to eliminate the$2,000,000 for Transportation Projects (they lay outside the new TIRZ boundary)making the new public improvement Project Plan a total of$3,823,000 (Exhibit J & K). The TIRZ boundary was modified from the 68.3976 acres approved by Ordinance 2009-15 to 79.80 acres (Exhibit L&M). This change expanded the boundary to the center lines of IH 45 and Smither Road to allow offsite paving(entrance/ exit approaches from the project to IH45 and Smither Road)to be included in the Project Plan. 3 P1 7 8 PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit: A (Approved August 3, 2004) West Hills Park Item Estimated Cost$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 4 PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 P 17 9 Project Plan Exhibit: B (November 9,2004 Revision) CURRENT PROJECT PLAN Project Estimated Cost$K Project 1 (A) West Hills Park 3,318 NEW PROJECT PLAN Project Estimated Cost$K Project 1 (A)West Hills Park 2,218 5 Pi 80 PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit: C (Approved November 9, 2004) PROJECT 1 (A) West Hills Park Item Estimated Cost$K Water 50 Waste Water 96 Drainage 150 Demolition 250 Utility Relocations 250 Streets 356 SUBTOTAL 1,152 Engineering/Surveying Fees(15%) 173 Financing Costs 600 SUBTOTAL 773 Contingency& Admin Costs (10%) 193 TOTAL 2,118 6 PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 P1 81 Project Plan Exhibit: D (December 13,2005 Revision) CURRENT PROJECT PLAN Project Estimated Cost$K Project 1 (A)West Hills Park 2,118 NEW PROJECT PLAN Project Estimated Cost$K Project 1 (A)West Hills Park 2,118 Project 2 (B)Bearkat Crossing 2,451 TOTAL 4,569 7 P1 82 PROJECT PLAN—HUNTSVILLE TIRZ NO. I Project Plan Exhibit: E (Approved December 13, 2005) PROJECT 1 (A) West Hills Park Item Estimated Cost$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 PROJECT 1 TOTAL 2,118 PROJECT 2 (B) Bearkat Crossing Item Estimated Cost$K On-site Roadways (Incl. land cost) 1,591 Water and Sanitary Sewer 305 Engineering, Design &Fees 186 Financing Cost(7%) 146 SUBTOTAL 2,228 Contingency&Admin 223 PROJECT 2 TOTAL 2,451 GRAND TOTAL 4,569 Note: Public improvement program and cost supplied by Developer. 8 PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 P1 83 Project Plan Exhibit: F (April 24, 2007 Revision) CURRENT PROJECT PLAN Project Estimated Cost$K Project 1 (A) West Hills Park 2,118 Project 2 (B) Bearkat Crossing 2,451 TOTAL 45569 NEW PROJECT PLAN Project Estimated Cost$K Project 1 (A)West Hills Park 2,118 Project 2 (B)Bearkat Crossing- Deleted - Ravenwood Village 8,303 Transportation Projects 2,000 TOTAL 12,421 9 P1 84 PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit: G (Approved April 24,2007) PROJECT 1 (A) West Hills Park Item Estimated Cost$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 Ravenwood Village Item Estimated Cost$K East/West Public Road 645 Offsite Paving 335 Detention Ponds 1,511 Retaining Walls 389 Public On-site Water 230 Public On-site Sanitary Sewer 214 SUBTOTAL 3,324 Engineering/ Surveying Fees (15%) 499 SUBTOTAL 3,823 Public Roads (Residential Development) 4,480 RAVENWOOD VILLAGE TOTAL 8,303 Transportation Projects 2,000 TOTAL 10,303 GRAND TOTAL 12,421 10 PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 P1 85 Project Plan Exhibit: H (January 20,2009 Revision) CURRENT PROJECT PLAN Project Estimated Cost$K Project 1 (A)West Hills Park 2,118 Ravenwood Village 8,303 Transportation Projects 2,000 TOTAL 12,421 NEW PROJECT PLAN Project Estimated Cost$K Project 1 (A)West Hills Park- Deleted - Ravenwood Village 3,823 Transportation Projects 2,000 TOTAL 5,823 11 P1 8 6 PROJECT PLAN—HUNTSVILLE TIRZ NO. I Project Plan Exhibit: I (Approved January 20, 2009) RAVENWOOD VILLAGE Item Estimated Cost$K East/West Public Road 645 Offsite Paving 335 Detention Ponds 15511 Retaining Walls 389 Public On-site Water 230 Public On-site Sanitary Sewer 214 SUBTOTAL 3,324 Engineering/ Surveying Fees (15%) 499 SUBTOTAL 3,823 Transportation Projects 25000 TOTAL 5,823 12 PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 P1 8 7 Project Plan Exhibit: J (April 20,2010 Revision) CURRENT PROJECT PLAN Project Estimated Cost$K Ravenwood Village 3,823 Transportation Projects 2,000 TOTAL 5,823 NEW PROPOSED PROJECT PLAN Project Estimated Cost$K Ravenwood Village 3,823 Transportation Projects - Deleted - TOTAL 3,823 13 P1 8 8 PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit: K (Approved April 20, 2010) RAVENWOOD VILLAGE Item Estimated Cost$K East/West Public Road 645 Offsite Paving 335 Detention Ponds 1,511 Retaining Walls 389 Public On-site Water 230 Public On-site Sanitary Sewer 214 SUBTOTAL 3,324 Engineering/ Surveying Fees (15%) 499 TOTAL 3,823 14 PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 P 18 9 Project Plan Exhibit: L Insert Boundary Description 15 Pi 90 PROJECT PLAN—HUNTSVILLE TIRZ NO. 1 Project Plan Exhibit: M Insert Boundary Map 16 P191 FINANCE PLAN April 2010 (Revised) 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 schcliQswbell.net P1 92 FINANCE PLAN—HUNTSVILLE TIRZ NO. 1 April 2010 The Financing Plan provides information on the projected monetary impact that Tax Increment Financing Reinvestment Zone No. 1 (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 P1 9 3 The specific capital improvement projects now anticipated to be undertaken in 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 $3.823 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 50% of its tax rate,not to exceed$0.3125/$100 valuation. 7. The current total appraised value of taxable real property in the revised TIRZ boundary. • The appraised base value of the taxable real property in the TIRZ using the 2009 values provided by the Walker County Appraisal District is $330,668 for the City and $311,415 for the County. 3 P1 94 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 12.1 2006 12.2 2007 12.2 2008 12.9 2009 6.7 2010 9.6 2011 24.0 2012 32.1 2013 44.9 2014 44.9 2015 44.9 2016 44.9 2017 44.9 2018 44.9 2019 44.9 2020 44.9 2021 44.9 2022 44.9 2023 44.9 4 FINANCE PLAN-HUNTSVILLE TIRZ NO. 1 P1 9 5 • 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 Base Annual TIRZ Funds,$K TIRZ Funds, TIRZ Funds, Year Assessed Assessed Captured City $K $K Value,$M Value,$M Value,$M $0.4007 County Total $0.2885 $0.6892 2004 12.5 12.5 - - - ' 2005 12.1 12.5 2006 12.2 12.5 2007 12.2 12.5 - 2008 12.9 12.5 0.4 - - 2009 6.7 0.3 6.4 2 1 3* 2010 9.6 0.3 9.3 26 18 44 2011 24.0 0.3 23.7 37 27 64 2012 32.1 0.3 31.8 95 69 164 2013 44.9 0.3 44.6 127 92 219 2014 44.9 0.3 44.6 179 128 307 2015 44.9 0.3 44.6 179 128 307 2016 44.9 0.3 44.6 179 128 307 2017 44.9 0.3 44.6 179 128 307 2018 44.9 0.3 44.6 179 128 307 2019 44.9 0.3 44.6 179 128 307 2020 44.9 0.3 44.6 179 128 307 2021 44.9 0.3 44.6 179 128 307 2022 44.9 0.3 44.6 179 128 307 2023 44.9 0.3 44.6 179 128 307 2024 - - - 1 179 1 128 307 TOTAL 1 2,256 J 1,615 3,871 * Assessed value increase prior to new private development. 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. 5 P1 96 FINANCE PLAN—HUNTSVILLE TIRZ NO. I Finance Plan Exhibit: A Boundary Description c>Ty off HCJly1gvnjxT'EJLAs Qt bft Warks-StlrvGtIr9 "S State Hwy.75 N Hufftvige,Texts 77820 TIM STATS OF TEXAS $ CouMFY OF WAIXER 2 I,I eotcad pa Registered pmmn. t Land Surveyor No.2524,do laneby entityutast this document was proposed rendes'22 TAC 663.21,does not collectthe results of an an the ground survey,and Is not to be used to convey or establish interests in am,property czeapt Hoose rights and interests implied or established by the creauou or reconfigpration of the boundary of the political subdivision for which It was prepared- TAX INOUMENT jUaNVESMENT ZME NUJf2I#M CWK g g{g Remg a trail of land co n simall79-80 uzes,mom or less,within the ctirpomM limits Of the Ci€ycf Huntsville,situated in the PLEASANT GRAY L.EAC7 E.Abstract Na 24 andi of t.WISt OX l ACKJF- Abstract Nn I3 both to Walker County,Texas,said 79.8o aces being comprised(I)Lots I dwuugb 14,inc€usive.Siad€,of the HUN'ISVU IB RETA IL CENTERRA vier acccsording to a Peat,dated octaber 2008 wooded in V ailmne 4,page 62.Pink county.Texas. (2)A called 4EL9013 acre trash described by metes and bounds labeled"Proposed Raveawood Vines Drkm-and afgchod as Ifthlbtt F In a Property Owasco Agreement between Ravmwewd V titngt oun►-td and MCN Really L.P teoarded in Ventures 864,pages 64,of iCW Public Regis or Walker Conmty, 7txas. (3)10.57 ac=re,moss or leas,being a portion of the high(-orf-way of inbustate Highway Na.45,eat of and a part of the following parcels: (€)a called SS_o eras parcel described In a R#gbl-Of-Way Deed.from John T_Smisber,et,2110 the Stake of Tema dated November li,1956 recorded in Val t55,page 472,Deed Records or W alkor Comty,Texas: (2)"Fardel s i",mlted 20 acres.in a Rtght-E)f.--Way l3eed hum John T.Smlflto the State of Texas dated Lhbruary 4,19-57 wxovdad in Volume 155,paSp 427,Dead Records; (4)0.93 acre,[[tare or Jess,being a portion of the r#g}t-of-way of Smiiher Drive,out or and a pari Of the fol(1)-parcel peseaLs -f?I Wa Deed from Flarim R.Klmsmon to the City (1}'Parcel 28",called 4 dated aura.in a r 3.1 Y 445,Ot�al public at-k[ttatavili+m,Testas dated SepiertabQ 3.L999 rocarded#nYabmte 398.gaga R1%x rda: (2)"'Prod 34",called Q 198 acre,in a:Right W-Wap Deed from Rech H.Smittar Family Trust and the Estate of Robert B.Smiiher ID the:City at Huntsville,Turas dated September l3,1999 nxmrded in Volumce 402.page 459,Official Public Records: said 79.30 acro acct being deacribed by uses and bounds to wit BEGU04MG.at the northwe d comer of Lot 3,Block I or said HLTN TSVO T E RETAIL CENTER in the mast nnri#unrly end Dina of RESERVE A-52771 AC of same subdiv Si known locally said t f HeOnond being also the southwest ocoa r of a7o foot wide right-of-way for roadway V 01agR Delve; 17=1ENCE?N 03'40'07^W,with the west line or said 70"fest wide right-cif-way and the most Northerly east Iiae of RESERVE A-52..771 AC,8135-00 flet pass the nartlrraast carom of said RESERVE A,a pow far earner,to the south Use,of a called 322328 acts tract deacribed is a Dead Ina 155. Kimberly Land L.td.to MNC Really,L.P.dated April i$2001 moarded to Volume 456,P ont, ePublic Records,said paint being also the soulhwC t� t ��°�of said dictal MNC Realty.LP.32c= track,2328 acre tra ,nxxwded in Vu nnae S64,page64, EX HIBrr"A" Page I tsf 2 6 FINANCE PLAN—HUNTSVILLE TIRZ NO. I P1 97 Finance Plan Exhibit: B Note: Drawing has been reformatted from its original scale MNC Realty. LTD. tA_ COM]2.2]20 A. �«i ~•1AP. 456/137.O.F.R. 4 w� IqA s r.O.e. 10(` \ HUNTBVLLE 'RETAIL CENTER (" \ o PLAT - 4/1 62. P.R. 1 (t ,\. �o BLOCK'' I r.LR.Z Me. aft 6 � ! 73.80 ACRES VOt ! (e ,p o Y O►G �•� y (� +�► 0,,'l �P Tt S O( � 1 S 1� y ,A 1 \ Vd, r ,I P. 6SAT LGS.. A'� MAT D"IVE L. COM L6l.. L-13 NOTE. N 1.Th.p.p..d the plot I.to rd r.oan7y.n the b—d.rin of To. kwoorr. R.bNwl.f td Zap Ml.df Ono N hdd..Folin of I"nghryr—ya K II orou"Nlplra.y N.. -ew 7rollhor W- 2.TH.plot M pnPard eon.umrdly Ath o ori..Id b.u.d. g doe.dptla.Mb.ld E Wrr A'. L L.w.H E 1W,LL wd.r...po.r..f-0 L.d M...lv No pJ24,do ror.bp artYy 71wt ria down—d ws ponrd of.�yr.mdTaMv..�j..�rd 6.tMft.bb..V ON Mull ., ar ""M'h"two N .1 p.peM.uqt tm..rlot.nd S hdfecl.Im a n1bWd by 11,fo.IN.or rgn.au'.14..f e.b—dfy of it.p.lrl.d W.MM.ff .Md,If—p,"—L OW" PLAT OF Loarvd E llb.d. A.y Prof.Lmd th. p. No.2524 TAX INCREMENT REINVESTMENT ZONE ( M Ar,i r,;tt, NU4IBER ONE Lot CITY OF 146#4TIMLLE Leonard L Wood. 1N P_ BRAY LEAGUE. A-24 T92� CRT or I[?Rv'rMM L COX LEAGUE. A N -I] IM lefts. WALKERm Rd.Ihr/.T.WO WALKER COUNTY. TEXAS HH M k rte TT7Eo MAR-200 Row�OB�d GUILE I' 400 FEET TMv.eI.r.Y.O,ECffY.OHO'1T1Y6 NEN Of0N1.Q0710d.13 EXHIBIT "Se 7 P1 98 FINANCE PLAN—HUNTSVILLE TIRZ NO. 1 Finance Plan Exhibit: C PUBLIC INFRASTRUCTURE RAVENWOOD VILLAGE Item Estimated Cost$K East/West Public Road 645 Offsite Paving 335 Detention Ponds 1,511 Retaining Walls 389 Public On-site Water 230 Public On-site Sanitary Sewer 214 SUBTOTAL 3,324 Engineering/ Surveying Fees (15%) 499 TOTAL 3,823 8 FINANCE PLAN: EXHIBIT D—Feasibility Analysis Pi 99 FEASIBLITY ANALYSIS April 2010 (Revised) Tax Increment Reinvestment Zone No. I City of Huntsville, Texas CHRA ER & CLINE, 1.1,C George R. Schrader ' Larry D. Cline 4800 Broadway, Ste A Addison,TX 75001 972-661-1973 schch&wbell.net 1 P 2 0 0 FINANCE PLAN: EXHIBIT D—Feasibility Analysis INDEX Page Index 1 Forward 2 Section I: HISTORY/CURRENT SITUATION 3 Section 1I: TAX INCREMENT ANALYSIS 6 Section III: EXHIBITS A. Public Infrastructure 7 B. Proposed Buildout 8 C. TIRZ Fund 9 D. Real and Business Personal Property Income 10 E. Sales Tax Income 11 F. Summary of Tax Income 12 2 FINANCE PLAN: EXHIBIT D—Feasibility Analysis P 2 01 FORWARD Schrader & Cline, LLC was asked to prepare a Revised Feasibility Analysis using tax increment financing for the Ravenwood Area Tax Increment Reinvestment Zone No. 1 in the City of Huntsville, Texas. 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 SCHRADER t CLINE,LLC Schrader &Cline, LLC Addison, Texas April 2010 3 P 2 0 2 FINANCE PLAN: EXHIBIT D—Feasibility Analysis SECTION I: HISTORY/CURRENT SITUATION HISTORY The City of Huntsville created Tax Increment Reinvestment Zone (TIRZ) No. 1 on August 3,2004 (Ordinance No. 2004-16). The TIRZ encompassed an area of approximately 805 acres, generally along the west side of IH 45 and south of SH 30. The term of the TIRZ was established as 20 years. At the time of creation, a public infrastructure Project Plan totalling $3,319,000 was expected to generate private development in West Hills Park of$42,575,000. In December 2005 , (Ordinance 2005-12) a second private development known as Bearkat Crossing was added to the TIRZ which increased the public infrastructure Project Plan to $4,569,000 and the expected private development value to $72,575,000. In April 2007, (Ordinance 2007-14) the Bearkat Crossing private development was eliminated and a new private development, Ravenwood Village, was added to the TIRZ. This change increased the public infrastructure Project Plan to $12,421,000 and the expected private development value to$139,406,000. In January 2009, (Ordinance 2009-15) the West Hills Park private development and the housing portion of Ravenwood Village were eliminated. This change reduced the public infrastructure Project Plan to $5,823,000 and the expected private development value to $61,831,000. The change made in January 2009, also reduced the area of the TIRZ from approximately 805 acres to 68.3976 acres, the area of the proposed Ravenwood Village development. CURRENT SITUATION At meetings in April 2010, the TIRZ Board and City Council revised the public infrastructure Project Plan and made some minor adjustments to the TIRZ Boundary. The proposed Project Plan is revised to eliminate $2,000,000 for Transportation Projects (which lay outside the new TIRZ boundary) making the new public infrastructure Project Plan a total of $3,823,000 (Exhibit A). The TIRZ Boundary is modified from 68.3976 acres to 79.80 acres to allow for entrance / exit approaches to the Ravenwood Village project to IH 45 and Smither Road (see Project Plan and Finance Plan Exhibit A&B). 4 FINANCE PLAN: EXHIBIT D—Feasibility Analysis P 2 0 3 SECTION Il: 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 2009 goes on the tax rolls for the Tax Year 2010. 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 original base taxable value for the 805 acre TIRZ area was $12,520,870 for the City and $12,475,820 for the County. With the reduction in TIRZ area from 805 acres to 79.80 acres, the new base taxable value is now $330,668 for the City and $311,415 for the County. Taxes on this amount will continue to flow to each taxing jurisdiction during the remaining life of the TIRZ. 5 P204 FINANCE PLAN: EXHIBIT D—Feasibility Analysis The TIRZ Fund generated by the incremental value of new development shown in Exhibit B is calculated by multiplying the incremental assessed value by the property tax rates of participating jurisdictions. Fiscal year 2009 tax rates used: TAX RATE PER$100 OF JURISDICTION ASSESSED VALUE City of Huntsville $ 0.4007 Walker County(50%) $ 0.2885 Over the 20-year projection period, we have conservatively assumed that the nominal tax rates will remain constant. Taxes generated against tax year 2009 values as of January 1, 2009 are due and collected at the beginning of 2010. With the TIRZ, new private development value over twenty years as shown in Exhibit B will total $44.58 million with an associated business personal property and inventory value of $9.808 million. These projected real and business personal property and inventory incremental assessed values would yield the following tax revenues as shown in Exhibits C and D: TOTAL 20-YEAR JURISDICTION TAX REVENUE TIRZ Fund $ 3,868,000 City of Huntsville $ 492,000 Walker County $ 2,332,000 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 E: TOTAL 20-YEAR JURISDICTION TAX REVENUE City of Huntsville $ 10,849,000 Walker County $ 3,615,000 Based on this analysis, establishment of the TW will provide income to the TIRZ Fund of $ 3.868 million dollars over the next twenty years, which will fund the projected $3.823 million of public infrastructure projects. Total income to the City and County during the life of the TIRZ is shown in Exhibit F. In addition, tax revenue (including sales tax) for the first year after expiration of the TIRZ (21-years) will be$1,061,000 and $723,000 for the City and County respectively. 6 FINANCE PLAN: EXHIBIT D—Feasibility Analysis P 2 0 5 7 P 2 0 6 FINANCE PLAN: EXHIBIT D—Feasibility Analysis Feasibility Analysis Exhibit: A PUBLIC INFRASTRUCTURE PROJECT PLAN RAVENWOOD VILLAGE Item Estimated Cost$K East/West Public Road 645 Offsite Paving 335 Detention Ponds 1,511 Retaining Walls 389 Public On-site Water 230 Public On-site Sanitary Sewer 214 SUBTOTAL 3,324 Engineering/ Surveying Fees (15%) 499 TOTAL 3,823 8 FINANCE PLAN: EXHIBIT D—Feasibility Analysis P 2 0 7 Feasibility Analysis Exhibit: B BUILDOUT SCHEDULE YEAR USE SIZE,KSF VALUE,$K 2009 Discount Warehouse(Target) 128.8 6,440 2010 Lease Space 3.9 351 National Retailers 28.1 2,525 SUBTOTAL 32.0 2,876 2011 Lease Space 19.2 1,724 National Retailers 31.0 3,448 Grocery Store 65.0 5,850 1 Pads -Fast Food Restaurants .1 1,869 6 Pads -Full Service Restaurants 6.8 1,525 SUBTOTAL 132.1 14,416 2012 Lease Space 8.0 716 National Retailers 60.1 5,413 Pads-Bank 4.3 538 Pads -Fast Food Restaurants 6.4 1,433 SUBTOTAL 78.8 8,100 2013 Lease Space 16.7 1,499 National Retailers 55.1 4,955 Pads -Fast Food Restaurants 7.8 1,758 Pads-Automotive 12.8 3,194 Pads -Full Service Restaurants 7.3 1,342 SUBTOTAL 99.7 12,748 TOTAL 471.4 44,580 9 P 2 U 8 FINANCE PLAN: EXHIBIT D—Feasibility Analysis Feasibility Analysis Exhibit: C TIRZ FUND DEVELOPMENT DEVELOPMENT VALUE TIRZ FUND,$K* YEAR VALUE,$K CUM,$K 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 6,440 6,440 - 2010 2,876 9,316 44 2011 14,416 23,732 64 2012 8,100 31,832 164 2013 12,748 44,580 219 2014 - 44,580 307 2015 - 44,580 307 2016 - 44,580 307 2017 - 44,580 307 2018 - 44,580 307 2019 - 44,580 307 2020 - 44,580 307 2021 - 44,580 307 2022 - 44,580 307 2023 - 44,580 307 2024 - - 307 TOTAL 44,580 44,580 3,868 *Based on 2099 tax rates of City $0.4007/$100 valuation County(50%) $0.2885/$100 valuation 10 FINANCE PLAN: EXHIBIT D-Feasibility Analysis P 2 0 9 Feasibility Analysis Exhibit: D REAL AND BUSINESS PERSONAL PROPERTY INCOME INCOME TO YEAR * ; Dev Cum Value BPP&I Cum City, $K County, $K $K Value$K 2004 - - - 2005 - - - - 2006 - - - - 2007 - - - 2008 - - - - 2009 6,440 1,417 - - 2010 9,316 2,116 6 27 2011 23,732 5,221 8 39 2012 31,832 7,003 21 99 2013 44,580 9,808 28 132 2014 44,580 9,808 39 185 2015 44,580 9,808 39 185 2016 44,580 9,808 39 185 2017 44,580 9,808 39 185 2018 44,580 9,808 39 185 2019 44,580 9,808 39 185 2020 44,580 9,808 39 185 2021 44,580 9,808 39 185 2022 44,580 9,808 39 185 2023 44,580 9,808 39 185 2024 - - 39 185 TOTAL 44,580 9,808 492 2,332 * Based on BPP&I value at 22%of real property values. ** Based on tax rate of$0.4007/$100 valuation *** Based on tax rate of$0.2885/$100 valuation for Real Property,and$0.577/$100 valuation on BPP&I values. 11 P21 0 FINANCE PLAN: EXHIBIT D—Feasibility Analysis Feasibility Analysis Exhibit: E SALES TAX INCOME, $K a YEAR CITY COUNTY 2004 - - 2005 - - 2006 - - 2007 - - 2008 - - 2009 217 72 2010 271 90 2011 469 156 2012 619 206 2013 843 281 2014 843 281 2015 843 281 2016 843 281 2017 843 281 2018 843 281 2019 843 281 2020 843 281 2021 843 281 2022 843 281 2023 843 281 TOTAL 10,849 3,615 Note—Sales Tax Based On: 1 %2 % for City `/z% for County $400/ Sq. Ft. Sales For Restaurants $125 /Sq. Ft. Sales For All Others Additional 10% deducted for estimated reduction of sales at existing retail. 12 FINANCE PLAN: EXHIBIT D—Feasibility Analysis P211 Feasibility Analysis Exhibit: F SUMMARY OF TAX INCOME - $K CITY INCOME Real Property, BPP&I 492 Sales (1 '/z %) 10,849 TOTAL 11,341 COUNTY INCOME Real Property, BPP&I 2,332 Sales ('/2 %) 3,615 TOTAL 5,947 In addition to the amounts above, $3,86 flows to TIRZ Fund 13 P212 CITY OF HIJNTSVHJXL,TEXAS Public Works-Surveying 448 State Hwy.75 N Huntsville,Texas 77320 THE STATE OF TEXAS § COUNTY OF WALKER § 1,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 RE7I4EWMENT ZONE NUMBER ONE (REVISED MARCS 2010) Being a tract of land cmdauring 79.80 acres,more or less,within the corporate Bruits of the City of Huntsville,situated in the PLEASANT GRAY LEAGUE,Abstract No.24 and the LEWIS COX LEAGUE, Abstract No.13 both in Walker County,Texas,said 79.80 acres bang comprised of the following: (1)Lots 1 through 14,inclusive,Block 1,of the HUNTSVILLE RETAIL CENTER subdivision, according to a Plat,dated October 2008 recorded in Volume 4,page 162,Plat Records of Walker County,Texas. (2)A called 0.9013 acre tract described by metes and bounds labeled"Proposed Ravenwood Village Drive"and attached as Exhibit F in a Property Owners Agreement between Ravenwood Village,Ltd. and MCN Realty LP recorded m Volume 864,page 64,Official Public Records of Walker County, Texas. (3)10.57 acres,more or less,being a portion of the right-of--way of Interstate Highway No.45,out of and a part of the following parcels: (1)a called 55.0 acre parcel described in a Right-Of-Way Deed from John T.Smither,et al to the State of Texas dated November 8,1956 recorded in Volume 155,page 422,Deed Records of Walker County,Texas; (2)"Parcel#1",called 2.0 acres,in a Right-Of-Way Deed from John T.Smither,et al to the State of Texas dated February 4,1957 recorded in Volume 155,page 427,Deed Records; (4)0.83 acre,more or less,being a portion of the right-of-way of Smither Drive,out of and a part of the following parcels: (1)"Parcel 28",called 4.067 acres,in a Right-Of--Way Deed from Florin R.Kiussmann to the City of Huntsville,Texas dated September 3,1999 recorded in Volume 398,page 445,Official Public Records; (2)"Parcel 34",called 0.198 acre,in a Right-Of-Way Deed from Ruth H.Smither Family Trust and the Estate of Robert B.Smither to the City of Huntsville,Texas dated September 13,1999 recorded in Volume 402,page 4S8,Official Public Records; said 79.80 acre tract being described by metes and bounds to wit: BEGINNING,at the northwest corner of Lot 3,Block 1 of said HUNTSVILLE RETAIL CENTER in the most northerly east line of RESERVE A—52.771 AC of same subdivision,said Point of Beginning being also the southwest corner of a 70 foot wide right-of-way for roadway known locally as Ravenwood Village Drive; THENCE N 03°40'07"W.with the west line of said 70 Eoot wide right-of-way and the most Northerly east lire of RESERVE A—52.771 AC,at 35.00 feet pass the northeast corner of said RESERVE A,a point for corner,in the south tine of a called 32.2328 acre tract described in a Deed from Kimberly Land Ltd.to MNC Realty,L.P.dated April 12,2001 recorded in Volume 456,page 155, Official Public Records,said point being also the southwest comer of said 0.9013 acre parcel,out of said MNC Realty,L.P.32.2328 acro tract,recorded in Volume 864,page 64,Official Public Records, EXI-IIBIT"A" Page 1 of 2 P213 Tax In nu:nt Reinvestment Zone Number Out Revised tdareh 2010 City of Runts dte WaOccr County,Teas cominuing N 03.40'07"W,with the west tine of said 70 foot wide right-of-way,a total distance of 70.00 feet to northwest comer of said 0.9013 acre parcel; THENCE N 86°19'46"X with the north right-of-way tine of said Ravemvood Village Driveq a distance of 984.44 beet to the Point of Curvature of a curve to the left,having a Radius of 150.00 feet,a Central Angle of 2g°56'23"and a Chord ofN 71°51'34"E 74.96 feet; THENCE,continuing with the north right-of-way line of said Ravemvood Village Drive along said curve to the left,an arc distance of 75.76 feet to the Point of Tangency; THENCE N 57°23'23"E.continuing with the north right-0&-way line of said Ravenwood Village Drive,at 15.56 feet pass the northeast comer of said 0.9013 acre parcel in the west right-of-way line of Interstate Highway No.45 and the east line of said State of Texas 55.0 acre parcel,continuing for a total distance of 190.56 feet to a point in the median of said Interstate ILghway No.45; THENCE S 32'3637'E,with the approximate centerline of said Interstate Highway No.45,a distance of 2260.64 to a point; THENCE S 57'23'23"W a distance of 617.19 to the southeast comer of said City of Huntsville, Texas 0.198 acre right-of-way parcel,a point for comer in the southwest line of said State of Texas 2.0 acre right-of--way parcel; THENCE S 84'2636"W a distance of 983.04 to a point near the back of the concrete curb,on the north side,of said Smither Drive; THENCE N 32'3630"W a distance of 63.22 feet to the common south comer of Lot 11 and RESERVE A ofsaid HUNTSVILLE RETAIL CENTER; THENCE,with the common westerly lines of Lots 11,7 and 3 and the easterly lines of RESERVE A of said HUNTSVILLE RETAIL CENTER,as follows: (1)N 32'36'30"W a distance of 211.80 to the Point of Curvature of a non-tangent curve to the right, having a Radius of 70.00 feet,a Central Angle of 96'12'49"and a Chord of N 32'3690"W 104.22 feet; (2.)Northwesterly and northerly,along said non-tangent save to the right,an are distance of 117.55 feet to a point for corner, (3.)N 32'3630"W a distance of 557.62 to a point for corner, (4.)S 57'2323"W a distance of 25.88 to a point for corner; (5.)N 32'36'37"W a distance of 97.24 to a point for comer; (6.)N 50'20'50"W a distance of 204.50 to a point for corner; (7.)N 63'53'10'W a distance of 79.52 to a point for comer; (8.)N 35'34'09'W a distance of 38.69 to a point for center, (9.)N 07"2127'W a distance of 65.56 to a point for corner; (10.) N 14.40'28"E a distance of 299.10 to a point for corner, (11.) N 3Y 3&33"W a distance of255.77 to a point for comer, and N 03'40'07"W a distance of 450.14 to the POINT OF BEGINNING. Signed Leonard E.Woods Rog.Prof Land SurveyorNo.2524 Y:ZURVEYORSWROJECTSICOH1 aWS%TIRZIInRZ REV 0M(hT1Rt_t_REVj131Qkr.d= - Or y`�t� e .. .... LEONARD E.WOODS EXHIBIT"A" 2524 �Q �A •.9 ! ° Page 2 of 2 ti�4 I P214 y MNC Realty, LTD. C 456/t 5. OPR G k RAVETIW� �'�'� �� •��. P.O.S. HLINTSViLE RETAIL CENTER t• \. PLAT --.4/162. P.R. .� 4 \'j0 \ Id, \ 1 BLOCK ? I TIRZ. Afa. One mat 6 �tS �• 1 79.60 ACRES a t \ � v 10 of�� mat P. GRAY LGE.. A-2.A DWE L COR LGB•. A-13 NOTE N 1. The purpose of tM plot Is to rwmrrgure the bourdorles of Tax . heramanl Ralmrasfmanl Zone Number One to include o porRan at tM right-ol-rays of Intestate Hl wey No.45 od 9ndMw Drive. 2. TNs plat Is prewed conn rronity with a metes and bounds description lobated'EXHIBIT A'. w E L Leonard E Woods.Regislrad Professional Lad 9ulreyor No. 2524.do hereby carlity Mat this docurnent res prepared undw 22 TAC 663.21.dens not reflect the re"a of m an the ground suefel. and IS not 10 be used to ewrrey r estobish intsnets In rd property except these rlghh and S Intresls enpled w estak ished by the creollal or reconfiguraflen et the boundry of the poetical subdvlsan for rRecn It was Prepared agn.a— PLAT OF Lwnard F-Woods Rey Prot. Lad '.201w Na.zSz�TAX INCREMENT REINVESTMENT ZONE UHuntsflk. MOM Z 2010 NUMBER ONE sCITY OF HUNTSVILLE . GRAY LEAGUE, A-24 Cay or earaL.. COX LEAGUE A-13 Punk WOMB449 stale Herr.75 Al" WALKER COUNTY, TEXAS Hlnfseea.Taros 77520 1}afect Ne.09-05-01 MARCH 2010 Y,%G .grws\PR0IECTe\C0te0w9\TM Reg 0310%Tea0310nwS SCALE V • 400 FEET EXHIM "Br'