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O-2021-3825 approving the Second Amendment to the Project Plan and Reinvestment Zone Financing Plan
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O-2021-3825 approving the Second Amendment to the Project Plan and Reinvestment Zone Financing Plan
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5/11/2021 10:00:22 AM
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Legislative Records
Legislative Type
Ordinance
Legislative No.
O-2021-3825
Date
4/26/2021
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ReinvestmentZoneFinancePlan <br />A. EstimatedProjectCosts(TexasTaxCode§311.011(c)(1)): <br />Table1 liststheestimatedprojectcostsfortheZone.AssetforthinthisPlan,thedollar <br />amountsareapproximateandmaybeamendedfromtimetotimebytheBoardof <br />DirectorsoftheZonewithapprovaloftheCity <br />Council.Thefinancingcostsareafunction <br />ofprojectfinancingneedsandwillvarywithmarketconditionsfromtheestimatesshown <br />in Table1. <br />B. ProposedKind,Number,andLocationofallProposedPublicWorksorPublic <br />ImprovementstobeFinancedbytheZone(TexasTaxCode§311.011(c)(2)): <br />ThesedetailsaredescribedthroughoutthePlan,includingbutnotlimitedtoroadway <br />construction/reconstruction,stormwaterconveyanceandmanagementsystems,water <br />andwastewaterimprovementsandparksandrecreationfacilities.Thenumberand <br />locationofproposedimprovementsarecontainedin Table1. <br />C. EconomicFeasibility(TexasTaxCode§311.011(c)(3)): <br />Theoriginalplanpreparedin1999evaluatedtheeconomicpotentialoftheZone.The <br />analysisdeterminedthattheareawithintheboundariesoftheZonesubstantiallyarrests <br />andimpairsgrowthoftheCity,slowsdowntheprovisionofhousingaccommodationsand <br />commercialdevelopmentandconstitutesaneconomicandsocialliability.Atthetimeof <br />creation,theareaincludedintheTIRZwaspredominatelyopenandconsistedofproperty <br />withdefectivetitlesanddelinquenttaxes.Theseconditionsalongwiththeenormous <br />costofinfrastructureimprovementsincludingdrainageandsewer,impededthesound <br />growthanddevelopmentofthearea.Asaresultitwasdeterminedthattheareawould <br />benefitfromaTaxIncrementReinvestmentZone,whichfacilitatesinfrastructure <br />improvementsandprojects.Theseimprovementswouldfacilitateresidentialand <br />commercialdevelopmentinthearea. <br />Exhibit1 constitutesincrementalrevenueestimatesforthisPlan.Theincremental <br />revenueestimatesareprojectedtobesufficienttocoverthecostofproposed <br />improvements.TheZoneandtheCityfindanddeterminethatthePlaniseconomically <br />feasible. <br />D. EstimatedAmountofBondIndebtedness;EstimatedTimeWhenRelatedCostsor <br />MonetaryObligationsIncurred(TexasTaxCode§311.011(c)(4),§311.011(c)(5)): <br />IssuanceofnotesandbondsbytheZonemayoccurastaxincrementrevenuesallow.The <br />valueandtimingoftheissuanceofnotesorbondswillcorrelatetodebtcapacityas <br />derivedfromtheprojectsandrevenueschedulesincludedin Table1 and Exhibit1,as <br />wellasactualmarketconditionsfortheissueandsaleofsuchnotesandbonds. <br />E. MethodsandSourcesofFinancingProjectCostsandPercentageofIncrementfrom <br />TaxingUnitsAnticipatedtoContributeTaxIncrementtotheZone(TexasTaxCode§ <br />311.011(c)(6)): <br />Methodsandsourcesoffinancingincludetheissuanceofnotesandbonds,developer <br />advances,aswellascollaborationwiththecity,andotherentitiesforgrantfundingand <br />partnerships.TaxincrementwillconsistofcontributionsfromtheCity,CountyandLa <br />PorteIndependentSchoolDistrict.Thetaxingentitiesparticipateatthefollowingrates: <br />5 <br /> <br />
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