Ord 2024-4035_Expansion of TIRZ 1

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Introduction The Reinvestment Zone Number One, City of La Porte, Texas ('Zone"), was created by the City Council of the City of La Porte, Texas ('City") in 1999 by Ordinance No. 99-2325. City Council subsequently approved the Project Plan and Reinvestment Zone Financing Plan. The purpose of the tax increment reinvestment zone (the "Zone") is to finance construction of public facilities and infrastructure necessary to catalyze commercial and residential development and redevelopment within the Zone boundary. The Original Zone covered approximately 1,362 acres and was created with the intent of encouraging residential, retail, and light industrial uses within the Zone. At the time, the excessive costs associated with constructing a regional detention basin and channel system and oversized sanitary sewer lift stations, force mains and gravity collection lines in accordance with the City's master plan prohibited the sound growth of the municipality and impeded the development of the area solely through private investment. A regional approach to storm water detention was also necessary due to the inherent inefficiencies in localized detention which decreased the amount of usable land, thus limiting the amount of taxable value within the area. The Zone was created as a mechanism to fund expenditures associated with the design, construction and financing of public improvements, as well as other specific project related costs. Developers have advanced funds on behalf of the TIRZ for design and construction of speck public facilities, to be reimbursed through a development reimbursement agreement. On February 30'", 2014, by Ordinance No. 2014-3509 City Council approved the First Amended Project Plan and Finance Plan which expanded the Zone boundaries to include an additional 33 acres of land and provide for the construction of public utilities and storm water detention facilities to accommodate development within the expanded boundaries. Since inception of the Zone a number of public improvements have been completed including roadways, drainage, water and sewer improvements. Residential, commercial and industrial development has occurred, and values have increased to over $338 million. On April 26", 2021, by Ordinance No. 2021.3825 City Council approved the Second Amended Project Plan and Finance Plan which extended the Ilfe of the Zone an additional five years allowing the TIRZ to continue to accomplish the goals for which it was originally created and to allow adequate time to fund new projects. On October 2e, 2022 by Ordinance No. 2022.3899 City Council approved the Third Amended Project Plan and Finance Plan which expanded the zone boundary by an additional 3.7 acres to include the proposed Sylvan Beach Enclave development and update the projects and project costs to support the boundary expansion. Fourth Amended Proiect Plan and Finance Plan The Zone and the City now propose the Fourth Amendment to the Project Plan and Finance Plan which expands the boundaries of the Zone by an additional +/- 323.13 acres to include projects and properties that support redevelopment. This document constitutes the Fourth Amended Project Plan and Reinvestment Zone Finance Plan as required by Chapter 311, Texas Tax Code. -3-