2013-12-02 Special Meeting of La Porte City Council

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zone and its benefits to the municipality and to the property in the proposed zone, and notice of public hearing must be published seven days prior to the established hearing date. The project plan must include: • A map showing existing uses and conditions of real property in the zone, • A map showing proposed improvements to and proposed uses of that property, • Proposed changes of zoning ordinances, the master plan of the municipality, building codes, and other city ordinances, • A list of the estimated non -project costs, and • A statement of a method of relocating persons to be displaced as a result of implementing the plan The plans must be as consistent as possible with the preliminary financing plan developed for the zone before the creation of the board. The Reinvestment Zone Financing Plan must include: • A detailed list describing the estimated project costs of the zone, including administrative expenses, • A statement listing the kind, number, and location of all proposed public works or public improvements in the zone, • An economic feasibility study, • The estimated amount of bonded indebtedness to be incurred, • A description of the method of financing all estimated project costs and the expected sources of revenue to finances or pay project costs, • The current total appraised value of taxable real property in the zone, • The estimated captured appraised value of the zone during each year if its existence, and • The duration of the zone The board of directors may adopt an amendment to the project plan, and the amendment takes effect on approval of an ordinance by the governing body of the municipality. The term tax increment financing refers to the amount of tax revenue generated on the increased property values that result from the development improvements. Participating taxing units continue to receive tax revenue on the property tax values in the year the TIRZ is created. At the time the TIRZ is created, the base taxable value is established. In subsequent years, for the life of the zone, participating taxing units continue to collect revenue on the established base taxable value. The tax revenue on the incremental value is used to finance public improvements within the zone. Under Chapter 311, tax-exempt bonds may be sold to finance public improvements within the Zone. If bonds are sold to fund improvements, taxes generated on the increased property value above the base are dedicated to paying debt service on the TIRZ bonds. If no bonds are issued, these tax increment funds may directly finance the zone improvements. No assessments are made over and above the normal property taxes. In Harris County, Chapter 311 mandates that one-third of the tax increment be dedicated to providing low/moderate income housing in the city if the TIRZ is created by petition. Other taxing units, such as the county and school district may participate in whole or in part, in the TIRZ, but are not required to do so. Development activities for the zone must follow a project and financing plan. This plan must be approved by the city council. Mr. Hawes pointed out that if applicable, relocation assistance must be provided for persons who are displaced by the implementation of zone improvements. An appointed Board of Directors administers a TIRZ. Mr. Hawes is contracted with the Redevelopment Authority to administer all aspects of the TIRZ in La Porte. Page 2 of 3 December 2, 2013, Council Meeting Minutes