HomeMy WebLinkAboutOrd. 1999-2316 - notification of entities, board composition for TIRZ #1
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ORDINANCE NO. 99- 2316
AN ORDINANCE APPROVING NOTICE TO THE GOV."ING BODIES OF BARRIS
COUNTY, TEXAS, LA PORTE INDEPENDENT SCHOOL DISTRICT, SAN JACINTO
COLLEGE DISTRICT, PORT OF HOUSTON AUTHORITY, HARRIS COUNTY HOSPITAL
DISTRICT, AND HARRIS COUNTY FLOOD CONTROL DISTRICT, REGARDING THE
CITY'S CONSIDERATION OF A CONTIGUOUS GEOGRAPHIC AREA WITHIN THE
CITY OF LA PORTE, TEXAS, AS REINVESTMENT ZONE NUKBER ONE, CITY OF
LA PORTE, TEXAS; ESTABLISHING A DATE FOR A PUBLIC HEARING ON THE
CREATION OF PROPOSED REINVESTMENT ZONE NUKBER ONE, CITY OF LA
PORTE, TEXAS; AUTHORIZING AND DIRECTING OTHER ACTIONS PRELIMIHARY
TO THE CREATION OF THE PROPOSED REINVESTMENT ZONE NUKBER ONE, CITY
OF LA PORTE TEXAS; CONTAINING FINDINGS RELATING TO THE FOREGOING
SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND
PROVIDING AN EFFECTIVE DATE HEREOF.
WHEREAS, the City of La Porte, Texas (the "city") is
considering the designation of a contiguous geographic area in La
Porte, Texas, as a reinvestment zone under the provisions of
Chapter 311 of the Texas Tax Code over an area described on Exhibit
"A" attached hereto; and
WHEREAS, the area to be designated as a reinvestment zone is
predominantly open and, because of obsolete platting, deteribration
of structures or site improvements, or other factors, substantially
impairs or arrests the sound growth of the City; and
WHEREAS, prior to the creation of the proposed reinvestment
zone, the City Council must hold a pUblic hearing on the creation
of the proposed reinvestment zone and its benefits to the City and
the property in the proposed reinvestment zone; and
WHEREAS, the city desires to receive comments of all affected
property owners and of other taxing jurisdictions which levy real
property taxes within the reinvestment zone; and
WHEREAS, pursuant to section 311.003 (e) of the Texas Tax Code,
the governing body of the City must notify in writing the governing
body of each taxing unit that levies real property taxes in the
proposed reinvestment zone that the City may establish the zone not
later than the 60th day before the date of the public hearing on
designation of the reinvestment zone; and
WHEREAS, the City will conduct a public hearing regarding such
designation on May 24, 1999, at 6:00 p.m.; and
WHEREAS, Harris County, Texas, La Porte Independent School
District, San Jacinto College District, Port of Houston Authority,
Harris County.Hospital District, and Harris County Flood Control
District, are taxing authorities in the anticipated area of the
reinvestment zone; and
WHEREAS, the City desires to notify the governing bodies of
Harris County, Texas, La Porte Independen~ School District, San
Jacinto College District, Port of Houston Authority, Harris County
Hospital District, and Harris County Flood Control District, of its
consideration of the designation of the reinvestment zone; and
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WHEREAS, to consider the creation of the reinvestment zone it
is necessary that a preliminary reinvestment zone financing plan be
prepared and circulated to all taxing units that levy real property
taxes in the proposed reinvestment zone prior to the holding of a
public hearing on the creation of the proposed reinvestment zone;
and
WHEREAS, prior to the creation of the proposed reinvestment
zone other actions, including discussions with and presentations to
other taxing units levying taxes on the real property in the
proposed reinvestment zone, may be necessary and appropriate.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. That the findings and recitals in the preamble of
this Ordinance are hereby found and determined to be true and
correct and are hereby approved and adopted.
Section 2. That the City hereby confirms its intention to
designate a contiguous gebgraphic area within the City, as
described on Exhibit "A", as Reinvestment Zone Number One, City of
La Porte, Texas.
section 3. That the City Council establishes the date of May
24, 1999, at 6:00 p.m., in the City Council Chambers, for a public
hearing on the establishment of a proposed tax increment
reinvestment zone to be known as Reinvestment Zone Number One, City
of La Porte, Texas, under the provisions of Section 311.003(c) of
the Texas Tax Code. The City Secretary is directed to cause notice
of the public hearing to be published in a newspaper of general
circulation in the City not later that the seventh day before the
date of the hearing.
Section 4. That the notice addressed to the County Judge of
Harris County, the Superintendent of La Porte Independent School
District, the Chancellor of San Jacinto College District, the
General Manager of Port of Houston Authority, the President of
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Harris County H~ital, and the Chief Engi~r of Harris County
Flood Control District, in sUbstantially the form attached hereto
as Exhibit "B" and incorporated herein for all purposes is adopted
and approved and the City Manager is directed to cause such notice
to be delivered as soon as practical.
section 5. The Mayor and the ci ty Manager, or their
desiqnees, are hereby directed to prepare a preliminary
reinvestment zone financing plan for the proposed zone and
distribute the preliminary reinvestment zone financing plan to each
taxing unit that levies taxes on real property in the proposed zone
as provided in section 311. 003 (b) of the Texas Tax Code. The Mayor
and the City Manager, or their designees, are hereby authorized to
take other such actions as are reasonably necessary preliminary to
the creation of the proposed zone, including without limitation,
providing notice to the taxing units levying " taxes on real property
within the proposed zone as provided in Section 311.003(e) of the
Texas Tax Code, making any presentations to other taxing units,
setting public hearing dates and other related actions.
section 6. The City Council officially finds, determines,
recites, and declares that a sufficient written notice of the date,
hour, place and subject of this meeting of the City Council was
posted at a place convenient to the public at the City Hall of the
city for the time required by law preceding this meeting, as
required by the Open Meetings Law, Chapter 551, Texas Government
Code; and that this meeting has been open to the public as required
by law at all times during which this ordinance and the subject
matter thereof has been discussed, considered and formally acted
upon. The City Council further ratifies, approves and confirms
such written notice and the contents and posting thereof.
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Section 7. This Ordinance shall be passed finally on the date
of this introduction and shall take effect immediately upon its
passage.
PASSED AND APPROVED, this 15th day of March, 1999.
By:
CITY OF LA PORTE
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No n L. Malone -
Mayor
ATTEST:
APP?SD: j
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Knox W. Askins
City Attorney
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Exhibit "A"
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Exhibit B
[City of La Porte Letterhead]
, 1999
. NOTICE OF PUBLIC HEARING
ON THE CREATION OF REINVESTMENT ZONE
NUMBER ONE, CITY OF LA PORTE, TEXAS
Dear:
Pursuant to Ordinance Number , adopted on , the City Council of the
City of La Porte, Texas (the "City"), has called a public hearing on the question of the creation of
Reinvestment Zone Number One, City of La Porte, Texas ("Reinvestment Zone Number One").
Notice is hereby given that the City Council of the City of La Porte, Texas will hold a public hearing
on the creation of Reinvestment Zone Number One, City of La Porte, Texas ("Zone One"). The
hearing will begin at six o'clock (6:00) p.m. on . in the City Hall at 604
West Fairmont Parkway, La Porte, Texas 77571. Representatives of are invited to
attend the public hearing and comment on the creation of Reinvestment Zone Number One.
The proposed boundaries of Reinvestment Zone Number One are described in Attachment 1. A
description of the tentative plans for development of Reinvestment Zone Number One and an estimate
of the general impact of Reinvestment Zone Number One on property values and tax revenues are set
forth in Attachment 2.
Pursuant to Section 311.003 (g) of the Chapter 311, Texas Tax code, City of La Porte has _ days
from the receipt of this notice to appoint a representative to meet with the City in order to discuss Zone
One's preliminary project plan and reinvestment zone financing plan.
If the City Council decides to proceed with the creation of Zone One, it welcomes your participation in
Reinvestment Zone Number One. We will provide any additional information you may require.
Please call me should you have any questions.
Sincerely,
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PROPOSED REINVESTMENT ZONE NUMBER ONE
CITY OF LA PORTE, TEXAS
DRAFT
PRELIMINARY REINVESTMENT ZONE FINANCING PLAN
MARCH 11, 1999
PREPARED BY
Hawes Hill & Patterson Consultants, L.L.P.
DRAFT 03.11.99
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PROPOSED REINVESTMENT ZONE NUMBER ONE,
CITY OF LA PORTE, TEXAS
PRELIMINARY REINVESTMENT ZONE FINANCING PLAN
OVERVIEW
The proposed reinvestment zone consists of approximately 1,080 acres of land, of
which approximately 520 acres is available to be developed as a master planned
community consisting of single family and multi-family residential, retail and light to
business industrial uses. The area included in the proposed zone is predominately
open. 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 prohibits the sound growth of
the municipality and impedes the development of the area solely through private
investment in the reasonably foreseeable future. A regional approach to storm water
detention is also necessary due to the inherent inefficiencies in localized detention
which will decrease the amount of usable land, thus limiting the amount of taxable
value within the area.
Expenditures associated with the design, construction and financing of public
improvements, as well as other specific project related costs are to be funded by tax
increment revenue derived from new residential and commercial property value
increases. It is anticipated that the Zone will enter into Development Reimbursement
Agreements. Developers may be reimbursed for funds advanced on behalf of the
reinvestment zone for the design and construction of specific public facilities and
related project costs as detailed in this Preliminary Plan. The Developers will dedicate
all public improvements to the City.
This document constitutes the Preliminary Reinvestment Zone Financing Plan as
required by Chapter 311, Texas Tax Code. The purpose of the proposed reinvestment
zone is to facilitate the developmenUredevelopment of residential and commercial
properties through the financing of:
. Water, wastewater, drainage facilities;
. New Streets;
. Parking facilities
. Landscaping and streetscapes; and
. Conference Center/Hotel
. Marina/Breakwater/Recreation
Facilities
The proposed public improvements to be constructed within the proposed zone will
facilitate private investment within the area substantially earlier than would otherwise
occur, if at all. The public improvements will facilitate the master-planned community
concept proposed for the proposed zone and it is expected that the public
improvements will spur additional development and redevelopment throughout the City
of La Porte and the surrounding area.
Preliminary Reinvestment Zone Financing Plan
La Porte, Texas
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1. Maps Showing Existing Uses And Conditions Of Real Property In The Zone
And Showing Proposed Improvements To And Proposed Uses Of The
Property
The proposed reinvestment zone (the "TIRZ") is located within the city limits of La
Porte. The TIRZ receives direct access by several existing roads. State Highway 146
runs north-south through the middle of the TIRZ. The western portion of the TIRZ is
accessed by Powell Road, which extends south from Fairmont Parkway to the southern
boundary of the TIRZ. Wharton Weems and McCabe Street run east-west through the
eastern portion of the TIRZ from SH 146 to South Broadway Street, which borders the
TI RZ to the east.
The TIRZ is surrounded by residential development with some light industrial and
commercial development. The City of La Porte Bay Forest Golf Course is located in
the eastern portion of the TIRZ, between SH 146 and South Broadway. Map 1 shows
the tentative boundary and Map 2 shows the current land uses within the TIRZ.
2. Proposed Changes Of Zoning Ordinances, The Master Plan Of The
Municipality, Building Codes, And Other Municipal Ordinances
All construction will be done in conformance with existing building code regulations of
the City of La Porte. There are no proposed changes of any city ordinance, master
plan, or building codes.
3. List Of Estimated Non-Project Costs
It is anticipated that the public improvements to be constructed the TIRZ could spur
private investment of over $200 million within the TIRZ over a ten year period. The
cost of constructing all improvements, other than those improvements that will be
dedicated to and owned by the City, will be borne by the private sector.
4. Statement Of Method Of Relocating Persons To Be Displaced As A Result Of
Implementing The Plan
The Preliminary Plan calls for the development of substantially vacant property.
Therefore, there is no displacement of property owners or residents.
5. Proposed Development And Project Costs
Vacant Land Development Opportunities
The proposed development plan consists of a program of public improvements, under
the authority of the Tax Increment Financing Act, which are intended to stimulate and
serve over $200 million in new private investment scheduled to occur over the next 10
years.
Preliminary Reinvestment Zone Financing Plan
La Porte, Texas
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It is anticipated that the proposed development will consist of detached single family
residences, townhomes, multifamily, retail, light to business industrial facilities and rail
facilities.
Vacant land Proiect Costs
The proposed public improvements necessary to develop the land within the TIRZ
include water distribution facilities, wastewater collection facilities, storm water
drainage improvements, street improvements and streetscape improvements.
The preliminary total cost of facilities to be constructed within the TIRZ for water,
wastewater, streets and drainage improvements is approximately $31 million. The
monetary obligations incurred or estimated to be incurred as described above are
necessary or convenient to the creation of the TIRZ. A summary of the preliminary cost
estimates is outlined below.
Residential
Commercial
Phase I
Phase II
Phase III
Phase IV
$ 7,008,000
2,897,000
2,215,000
2,096,000
$14,480,000
1,476,000
1,525,000
Total
$14,216,000
$17,481,000
Svlvan Beach Development Opportunities
Benchmark Hospitality Group proposes to build a full-service hotel and conference
center on Sylvan Beach located on Galveston Bay. The proposed development
consists of:
. 170 guestrooms;
. 15,000 square feet of conference space;
. additional 5,000 square feet of meeting space located in the existing Sylvan
Pavilion;
. full-service all day restaurant, as well as a pub bar offering entertainment and light
fare;
. outdoor pool with pool house, health club and deck area; and
. golf privileges at Bay Forest Golf Club
Preliminary Reinvestment Zone Financing Plan
La Porte, Texas
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Benchmark Hospitality revised the estimated costs for constructing the project in April
1998. The total cost associated with constructing the hotel and conference center
follows:
Hotel
Conference Center
Site Work & Amenities
$13.7 Million
6.0 Million
0.7 Million
TOTAL
$20.4 Million
However, the projected real property valuation that could reasonably be derived from
this project is as follows:
Hotel
Conference Center
$7.8 Million
3.2 Million
TOTAL
$11.0 Million
Other Imorovements And Costs
The City may deem other public improvements necessary for the development of the
TIRZ. If it is determined that additional public improvements shall be required, such
improvements will be incorporated into the Plan.
In addition to the cost of constructing public improvements within the TIRZ, there are
costs that have been incurred and are expected to be incurred by the City of La Porte,
and other participating taxing jurisdictions in the creation and organization of the TIRZ.
It is also anticipated that the TIRZ will pay, from available tax increment, a portion of
the administrative and maintenance costs associated with the public improvements
within the TIRZ.
6. A Description Of The Methods Of Financing All Estimated Project Costs And
The Expected Sources Of Revenue To Finance Or Pay Project Costs
Description Of The Methods Of Financina
In accordance with 311.015 of the Tax Increment Financing Act, the City may issue tax
increment bonds or notes, the proceeds of which may be used to pay project costs on
behalf of the TIRZ. Upon creation of the proposed redevelopment authority, the
authority may be authorized to incur debt and issue debt or obligations to satisfy
developer reimbursements for eligible project costs. If such bonds are issued, bond
proceeds shall be used to provide for the project related costs outlined in this plan.
When appropriate, Developers will advance project-related costs and be reimbursed
through the issuance of tax increment bonds or from increment revenues of the zone.
Preliminary Reinvestment Zone Financing Plan
La Porte, Texas
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Method And Timina Of Fundina Proiect Costs
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Developers will fund the costs of the improvements and will be reimbursed from the
issuance of bonds. Bond proceeds may be used to fund project costs if assessed
valuation within the TIRZ is sufficient to support such Bonds. It is possible that bonds
could be issued for reimbursement to developers in the following years and increments.
2003
2004
2005
2006
2007
Total Bonds
$8,000,000
8,000,000
8,000,000
8,000,000
8.155.000
$40.155.000
Although the timing of each phase has been included in the numerical analysis for
illustrative purposes, the actual funding and construction of project costs will be
determined by the actual development needs, market conditions, and available tax
increment revenue of the TIRZ.
Sources Of Tax Increment Revenue
The purpose of the TIRZ is to provide the necessary public improvements to support
residential and commercial development.
1/1/2002
1/1/2003
1/1/2004
1/1/2005
1/1/2006
1/1/2007
1/1/2008
1/1/2009
1/1/2010
1/1/2011
Estimated Captured Appraised Value
Residential
Commercial
Total
$ 36,911,111
58,500,195
70,839,279
100,678,363
119,667,446
157,384,971
172,790,000
194,940,000
199,740,000
206,740,000
$ 1,911,111
13,500,195
25,839,279
38,178,363
56,717,446
76,934,971
88,140,000
92,340,000
92,340,000
92,340,000
$ 35,000,000
45,000,000
45,000,000
62,500,000
62,950,000
80,450,000
84,650,000
102,600,000
107,400,000
114,400,000
Preliminary Reinvestment Zone Financing Plan
La Porte, Texas
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Participation Of Taxina Jurisdictions
Of the taxing jurisdictions (Harris County, Harris County Flood Control District, Harris
County Department of Education, Harris County Toll Road, the La Porte Independent
School District, the Port of Houston Authority and San Jacinto Junior College District)
which levy ad valorem taxes within Reinvestment Zone Number One, the City is
requesting the participation of Harris County, the La Porte Independent School District
and the Port of Houston Authority.
Tax Increment Fund
The City shall create and establish a Tax Increment Fund for the Zone, which may be
divided into sub-accounts as authorized by subsequent ordinances. A separate
account will be created for the property of each Developer. All Tax Increments, as
defined below, from a Developer's property will be deposited in the related account of
the Tax Increment Fund. The Tax Increment Fund and each account shall be
maintained at the depository bank of the City of La Porte or the Redevelopment
Authority (if created) and shall be secured in the manner prescribed by law for funds of
Texas cities.
The annual Tax Increment shall equal the property taxes levied by the City or any other
taxing unit participating in the zone for that year on the captured appraised value, as
defined by the Tax Increment Act (the "Act"), of real property located in the zone that is
taxable by the City or any other taxing unit participating in the zone, less any amounts
that are to be allocated from the Tax Increment pursuant to the Act.
All revenues from the sale of any tax increment bonds, notes, or other obligations
hereafter issued by the City for the benefit of the zone, if any; revenues from the sale of
property acquired as part of the project plan and reinvestment zone financing plan, if
any; and other revenues to be used in the zone shall be deposited into the Tax
Increment Fund. Tax increment revenue derived from a Developer's property and
proceeds of bonds issued to reimburse a Developer will be deposited to the related
account in the Tax Increment Fund. Prior to termination of the zone, money. shall be
disbursed from each account within the Tax Increment Fund only to pay project costs,
as defined by the Texas Tax Code, for the related property in the zone, to satisfy the
claims of holders of tax increment bonds or notes issued for the Zone, or to pay
obligations incurred pursuant to agreements allocable to the related property and
entered into to implement the project plan and reinvestment zone financing plan and
achieve their purposes pursuant to Section 311.01 O(b) of the Texas Tax Code.
Preliminary Reinvestment Zone Financing Plan
La Porte, Texas
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7. Economic Feasibility Study
An independent economic research firm, conducted a market demand leconomic
feasibility analysis of the proposed residential land uses within the proposed TIRZ. In
1997 Horwath Hospitality Consulting provided the City with a market study relating to
the above project. The market study provides an excellent analysis of the total project.
The overall results indicate a strong demand and success for such a project.
8. Duration Of The Zone
The proposed TIRZ shall remain in effect until the earlier of December 31, 2031 or the
date on which the Final Plan has been implemented and all project costs, tax increment
bonds, interest on such tax increment bonds and all other obligations, contractual or
otherwise, payable from the tax increment collected on the captured appraised value of
the property within the TIRZ have been paid in full.
Preliminary Reinvestment Zone Financing Plan
La Porte, Texas
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Map 1
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D SINGLE FAMILY RESIDENTIAL
. . rail MULn-FAMD..Y RESIDENTJAL
.. II CDMMERaAL RETAIL. OFFICE
.. INDUSTRIAL
II PUBUC AND INSTITUTIDNAL
III PARICS AND OPEN SPACE
. VACANT OR UNDEVELOPED
D RlGHI'S-OF-WAY AND II:AS9IENTS
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Map 2
. f\LE COP'i
City of La Porte
Established 1892
March 5, 1999
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Dear Mr.
The La Porte City Council is considering the creation of a Tax Increment Reinvestment Zone (TIRZ).
A subcommittee of Councilmembers has been working with staff and our consultant to prepare
guidelines that will be used when considering a TIRZ. The purpose of the guidelines is to establish the
City's policy as it relates to the designation and development ofa TIRZ. It is our belief that a TIRZ
can be an important economic development tool that benefits both the community and prospective
developers.
The proposed guidelines are enclosed for your information and review. As a landowner, developer or
broker you have expressed interest in the area being considered by City Council. We, therefore, are
inviting you to a meeting were the proposed guidelines will be reviewed.
We have established Wednesday March 31st at 4 p.m., in City Hall Council Chambers for a meeting
with you and other interested parties to review the proposed guidelines. If you cannot attend, please
feel free to send a representative or provide written comments. If you have any questions feel free to
call me at (281) 471-5020.
Additionally, the City Council is scheduled to consider, at their March 15th meeting, a Resolution
establishing a date for a Public Hearing on the creation of a reinvestment zone.
xc: Robert T. Herrera, City Manager
Jeff Litchfield, Assistant City Manager
P.O. BQX 1115. La Port~. Tex:ls 77572-1115. 1.2SI) 471-5020
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MaHin!! List
Stuart Haynsworth
Daetwyler Corporation
Carrington Weems
Ben Weems
Elizebeth Weems
c/o Patrick Westfeldt
Eddie Dutco
Eddie Gray
Glen Angel
Brad Dill
Barry Bone, TXI
Decker McKim
Doyle Toups
Jim Clifton
R. Dennis Blyshak, Benchmark Hospitality
Fred Westergren
Don Grangtes
Earl Wilburn
Bob Klassen, Sunbelt Commercial Builders
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