2004-04-26 Regular Meeting, Public Hearing, and Workshop Meeting

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rExAS May 10, 2004 City of La Porte . Mayor Pro-Tem and City Council The Tax Increment Reinvestment Zone Number One (TIRZ) ~ Boazd authorized this communication regarding the proposed Housing Tax Credit project within the TIRZ, known as Bayforest Ranch. The intent is not to dissuade Council from the decision they believe is in the best interest for the entire community. The Board only wishes to offer its perspective regarding the potential for development of the TIRZ as a whole. First, the Board is not in favor of the Bayforest Ranch Project. The Boazd shared the vision with City Council, Planning and Zoning Commission (P&Z)~ and others that this azea adjacent to the Bay Forest Golf Course and along SHi46 be developed primarily as single-family housing of a type and chazacter not currently available in La Porte. Also, the Board is not pleased with the way the City learned about this project, its proposed financing and the potential for loss of tax revenue, compounded by its location within the TIRZ. The Board also discussed the goals of the project plan, the potential funding for other public improvements and the lack of activity within the TIRZ. Currently the residential development within this area of the TIRZ is dependent on the exchange of properties between two owners/developers. This issue has already delayed development within the TIRZ. Because of this situation the smaller 15 Ac. project, Bayforest Ranch, is delaying the lazger 155 Ac. Development, Lakes at Fairmont Greens, which meets the goals of the TIRZ and the previous approvals of P&Z and Council. The Zone is already 4 tax yeazs into. its 30-year life without any development taking place. Even if approvals aze received this summer, improvements would not be on the ground prior to January 1, 2005 and another tax increment year is lost. While the Boazd made it clear it is not in favor of this project, they eventually took a stance of neutrality and ask Council to consider the same if the developer meets further conditions. This stance is partly due to the developer's forwazd movement on. improving the proposed product since it was first introduced. The additional conditions discussed by the Board are: ^ Payments in-lieu of taxes o If current owner or future owners aze a qualified SOIc(3) or a governmental body, agree to payments in-lieu of taxes for all taxing jurisdictions o Harris County Housing Authority, by Board action, agrees to the same if they become owner. o Covenant that any change in ownership in the future to a qualified SOIc(3) or another governmental unit be required to continue payments in-lieu of taxes o Other agreeable terms and conditions regarding payments in-lieu of taxes including term and provisions for renewal 604 W. Fairmont Pkwy. • La Porte, Texas 77571 • (281) 471-5020