1998-08-10 Regular Meeting and Workshop of City Council

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I I I I I I I I I I e e AKIN, GUMP, STRAUSS, HAUER & FELD, L.L.P. ATTORNEYS AT LAW AUSTIN BRUSSEL.S DAL.L.AS HOUSTON L.ONDON L.OS ANGEL.ES MOSCOW NEW YORK PHIL.ADEL.PHIA WASHINGTON. D.C. A REGISTERED LIMITED L.IABIL.ITY PARTNERSHIP INCL.UDING PROFESSIONAL. CORPORATIONS 300 CONVENT STREET SUITE 1500 SAN ANTONIO, TEXAS 78205 (210) 281-7000 FAX (210) 224-2035 CITY MANAGER ~- h9/()(,/9y ~-III A Ij?/ I 01 rJ& 'i I I Direct Dial: (210) 281-7084 August 5, 1998 Mr. Robert Herrera City Manager City of La Porte 604 West Fainnont La Porte, TX 77571 Re: Bay Forest Reinvestment Zone Dear Mr. Herrera: This letter is in response to the questions you posed to me at our meeting of July 22, 1998 concerning the possible creation of the Bay Forest ReinvestmentZone (the "Zone") and the proposed tax increment financing of improvements within the Zone. Specifically, the numbers listed below are the numbers on the list of questions you distributed to the working group on that date. I I 8. If the City .grees to create the TIF, does it have to participate with 100% of the value for ad valorem taxes? I The Zone anticipated to be created must be created pursuant to a petition filed under Section 311.005(a)(5) of the Tax Code (citations herein are to the Tax Code); therefore. Section 311.013(g) would apply which pennits the City, as a "taxing unit", to enter into an agreement whereby it could (1) include conditions for the payment of the tax increment, (2) specify the portion of the tax increment to be paid, and (3) specify the years for which the tax increment is to be paid. Accordingly, we believe that the City would not have to participate 100%. 9. If we do a TIF for this project, can we turn down a request from a similar developer? ... - Generally speaking, no two proposals will be the same. Accordingly, we believe the City Council has the power to reject a petition to create another zone, within its discretion, if it has a reasonable basis therefor. - 14. What are the differences between a regular TIF and a TIF that is created by a petition? A zone may be created either (1) by City Council on its own motion or (2) the City Council granting to a petition submitted by 50% of the appraised value of the property in the area according to the most recent certified appraisal for Harris County.