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Home My WebLink AboutO-2021-3825 approving the Second Amendment to the Project Plan and Reinvestment Zone Financing Plan City of La Porte,Texas,Ordinance No. 2021 -3825 AN ORDINANCE APPROVING THE SECOND AMENDMENT TO THE PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN FOR REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS, AND EXTENDING THE DURATION OF REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS, TO DECEMBER 31, 2034; AUTHORIZING THE CITY SECRETARY TO DISTRIBUTE SUCH PLANS; CONTAINING FINDINGS AND PROVISIONS RELATED TO THE FOREGOING SUBJECT; PROVIDING FOR SEVERABILITY; CONTAINING AN OPEN MEETINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of La Porte ("City") pursuant to the provisions of Chapter 311, Texas Tax Code, and Ordinance 99-2325, created Reinvestment Zone Number One,City of La Porte,Texas, (the"Zone"); and WHEREAS, the Board of Directors of the Zone has adopted and recommended, and the City has approved, the Project Plan and Reinvestment Zone Financing Plan (the "Plan") for the Zone;and WHEREAS, the Board of Directors of the Zone has adopted and recommended, and the City has approved the 2013 Amendment to the Project Plan and Reinvestment Zone Financing Plan for Tax Increment Reinvestment Zone Number One that reflects the enlargement of the Zone Boundaries, and WHEREAS, in the said Ordinance 99-2325, the effective date specified for the Zone was January 1, 2000, and the termination date specified for the Zone was December 31, 2029, establishing a 30-year duration; and WHEREAS, pursuant to Texas Tax Code Sections 311.007(c) and 311.017(a)(1), the City Council may, by ordinance, extend a reinvestment zone's termination date to a date later than the date originally established for termination of a zone; and WHEREAS, at its November 30, 2020, board meeting, the Board of Directors of the Zone considered and adopted the Second Amendment to the Plan that extends the duration of the Zone to December 31, 2034 ("Second Amendment"), and has recommended the Second Amendment for approval by the City; and WHEREAS, Texas Tax Code Section 311.003(c) provides that the City publish notice of a public hearing not later than the seventh (7) day before the date of the public hearing in a newspaper having general circulation in the municipality; and WHEREAS, the City Council, pursuant to Texas Tax Code Sections 311.003 and 311.011, after public notice thereof was given in a newspaper of general circulation of the City, conducted a public hearing on April 26, 2021, at which property owners and other interested persons were allowed to speak, and fmds that the amendments herein do not violate the limitations in Section 311.006(a) of the Texas Tax Code and are eligible for adoption under said Code. NOW,THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE,TEXAS THAT: Section 1. Findings. The findings and recitals contained in the preamble of this Ordinance are hereby found and declared to be true and correct and are adopted as part of this Ordinance for all purposes. Section 2. Extension of the Duration of the Zone. That the termination date of Reinvestment Zone Number One, City of La Porte,Texas, is hereby extended to December 31, 2034. Section 3. Approval of the Second Amendment. The Second Amendment, attached hereto as Exhibit "A", is hereby determined to be feasible and is approved. The appropriate officials of the City are authorized to take all steps reasonably necessary to implement the Second Amendment. Section 4. Severability. If any provision, section, subsection, sentence, clause or phrase of this Ordinance, or the application of same to any person or set of circumstances is for any reason be held to be unconstitutional,void or invalid,the validity of the remaining provisions of this Ordinance shall not be affected thereby, it being the intent of the City Council in adopting this Ordinance that no portion hereof or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionally,voidness or invalidity of any other portion hereof, and all provisions of this Ordinance are declared to be severable for that purpose. Section 5.Open Meeting. The City Council officially fmds,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 for the time required by law preceding this meeting,as required by the Open Meetings Law,TEX. GOV'T CODE, Ch. 551; and that this meeting was open to the public as required by law at all times during which this Ordinance and the subject matter thereof was discussed, considered and acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 6. Effective Date. This Ordinance shall be effective upon its passage and approval. PASSED,APPROVED AND ADOPTED ON THIS 26TH DAY OF APRIL, 2021 CITY OF LA PORTE, TEXAS By: L uis . Rigby, y r R `OAPF ` ATTEST: �� a �i LA., ,) %... t%� �li e -.IN/ i �;i : Le oodwa , City Secretary ',,, APPROVED AS TO FORM: A, t om Clark Askins, Assistant City Attorney EXHIBIT A NOTICE OF PUBLIC HEARING FOR EXTENSION OF DURATION OF REINVESTMENT ZONE NUMBER ONE, LA PORTE, TEXAS, UNTIL DECEMBER 31, 2034, AND APPROVAL OF SECOND AMENDED PROJECT PLAN AND FINANCE PLAN FOR REINVESTMENT ZONE NUMBER ONE, LA PORTE, TEXAS, PURSUANT TO CHAPTER 311, TEXAS TAX CODE. Notice is hereby given that the City Council of the City of La Porte,Texas will hold a public hearing at its meeting on April 26, 2021, which begins at 6:00 p.m. at City Council Chambers, 604 West Fairmont Parkway, La Porte, Texas,for extension of the duration Reinvestment Zone Number One, La Porte,Texas, until December 31, 2034, and approval of the Second Amended Project Plan and Finance Plan for Reinvestment Zone Number One, La Porte, Texas. All residents and property owners are invited to provide comments for or against the extension of the duration of Reinvestment Zone Number One, La Porte,Texas, or the concept of tax increment financing in general. At or on the adjournment of the public hearing, the City may extend the duration of the Zone for Reinvestment Zone Number One, La Porte, Texas, until December 31, 2034. A copy of the Second Amended Project Plan and Finance Plan may be obtained in the City of LaPorte's City Secretary's Office. REINVESTMENTZONENUMBERONE CITYOFLAPORTE,TEXAS SECONDAMENDED PROJECTPLANANDREINVESTMENTZONEFINANCINGPLAN November30,2020 REINVESTMENTZONENUMBERONE,CITYOFLAPORTE,TEXAS SecondAmendedProjectPlanandReinvestmentZoneFinancingPlan TableofContents Introduction.....................................................................................................................................3 ProjectPlan......................................................................................................................................4 ReinvestmentZoneFinancePlan....................................................................................................5 Exhibit1ZoneRevenues,AllEntities Exhibit2AProjectedValuesandRevenues,CityOriginalZone Exhibit2BProjectedValuesandRevenues,CountyOriginalZone Exhibit2CProjectedValuesandRevenues,ISDOriginalZone Exhibit2DProjectedValuesandRevenue,City2013Annex Map1BoundaryMap Map2AerialViewofPropertyinandsurroundingtheZone Map3ExistingLandUse/PropertyClassificationofPropertyintheZone 2 Introduction TheReinvestmentZoneNumberOne,CityofLaPorte,TexaswascreatedbytheCity CounciloftheCityofLaPorte,Texasin1999byOrdinanceNo.992325.CityCouncil subsequentlyapprovedtheProjectPlanandReinvestmentZoneFinancing.Thepurposeofthe taxincrementreinvestmentzone (theistofinanceconstructionofpublicfacilitiesand infrastructurenecessarytocatalyzecommercialandresidentialdevelopmentandredevelopment withintheZoneboundaries. TheOriginalZonecoveredapproximately1,362acresandwascreatedwiththeintentof encouragingresidential,retailandlighttobusinessindustrialuseswithintheZone.Atthetime, t heexcessivecostsassociatedwithconstructingaregionaldetentionbasinandchannel systemandoversizedsanitarysewerliftstations,forcemainsandgravitycollectionlinesin accordancewiththemasterplanprohibitedthesoundgrowthofthemunicipalityand impededthedevelopmentoftheareasolelythroughprivateinvestment.Aregionalapproach tostormwaterdetentionwasalsonecessaryduetotheinherentinefficienciesinlocalized detentionwhichdecreasedtheamountofusableland,thuslimitingtheamountoftaxable valuewithinthearea. TheZonewascreatedasamechanismtofundexpendituresassociatedwiththedesign, constructionandfinancingofpublicimprovements,aswellasotherspecificprojectrelatedcosts. DevelopershaveadvancedfundsonbehalfoftheTIRZfordesignandconstructionofspecific publicfacilitiesandtobereimbursedthroughadevelopmentreimbursementagreement. th OnFebruary10,2014,byOrdinanceNo.20143509CityCouncilapprovedtheFirstAmended ProjectPlanandFinancePlanwhichexpandedtheZoneboundariestoincludeanadditional33 acresoflandandprovidefortheconstructionofpublicutilitiesandstormwaterdetention facilitiestoaccommodatedevelopmentwithintheexpandedboundaries. SinceinceptionoftheZoneanumberofpublicimprovementshavebeencompletedincluding roadways,drainage,waterandsewerimprovements.Residential,commercialandindustrial developmenthasoccurredandvalueshaveincreasedtoover$338million. TheZoneandtheCitynowproposetheSecondAmendmenttotheProjectPlanandFinancePlan whichextendsthelifeoftheZoneanadditionalfiveyears,allowingtheTIRZtocontinueto accomplishthegoalsforwhichitwasoriginallycreatedandtoallowadequatetimetofundnew projects. ThisdocumentconstitutestheSecondAmendedProjectPlanandReinvestmentZone FinancingPlanasrequiredbyChapter311,TexasTaxCode.ThepurposeoftheTIRZisto facilitatethedevelopment/redevelopmentofresidentialandcommercialpropertiesthrough thefinancingofpublicinfrastructureandimprovements. 3 ProjectPlan A. AuthorizedProjectsandProjectCosts TheprojectcostsfortheSecondAmendmentaredetailedin Table1.Thedollaramounts foreachcategoryareapproximateandmaybeamendedfromtimetotimebytheBoard ofDirectorsoftheZonewithapprovaloftheCityCouncil. Table1EstimatedProjectCosts SecondAmendment Roadways$5,000,000.00 Utility$5,000,000.00 ParkandRecreationImprovements$10,000,000 TotalProjectCosts20,000,000.00$ B. ExistingandProposedUsesofLand(TexasTaxCode§311.011(b)(1)): TaxIncrementReinvestmentZoneNumberOne,CityofLaPorteconsistsof propertygenerallylocatedalongtheeastandwestsideofStateHighway146southof FairmontParkway.TheZonealsoincludespropertynearSylvanBeachPark.Existinguses withintheZoneconsistsofvacant/undeveloped,residential,commercial,andlight industrialuses.Surroundinglandusesinclude Maps2&3 showexistingusesand conditionswithintheZone.Proposedusesincluderesidential,commercial,industrialand undevelopedlanduses. C. ProposedChangesofZoningOrdinances,MasterPlanofMunicipality,BuildingCodes, andOtherMunicipalOrdinances(TexasTaxCode§311.011(b)(2)): Allconstructionwillbedoneinconformancewithexistingbuildingcoderegulationsof theCityofLaPorte.Therearenoproposedchangesofanycitydevelopmentordinances, masterplans,orbuildingcodes. D. EstimatedNonProjectCosts(TexasTaxCode§311.011(b)(3)): Theprojectcostsreferencedin Table1 areinclusiveofprojectcoststobeincurredbythe Zoneonly.Thecoststhatwouldotherwisebeprojectcostsbutarederivedfromother parties,suchastheCityofLaPorte,theTexasDepartmentofTransportationorprivate sources,arenonprojectcosts.Fundingidentifiedin Table1 forimprovementswillbe leveragedtoacquirenonprojectfunding. E. MethodofRelocatingPersonstobeDisplaced,ifany,asaresultofimplementingthe Plan(TexasTaxCode§311.011(b)(4)): Therewillbenopersonsdisplacedasaresultofimplementingtheplan. 4 ReinvestmentZoneFinancePlan A. EstimatedProjectCosts(TexasTaxCode§311.011(c)(1)): Table1 liststheestimatedprojectcostsfortheZone.AssetforthinthisPlan,thedollar amountsareapproximateandmaybeamendedfromtimetotimebytheBoardof DirectorsoftheZonewithapprovaloftheCity Council.Thefinancingcostsareafunction ofprojectfinancingneedsandwillvarywithmarketconditionsfromtheestimatesshown in Table1. B. ProposedKind,Number,andLocationofallProposedPublicWorksorPublic ImprovementstobeFinancedbytheZone(TexasTaxCode§311.011(c)(2)): ThesedetailsaredescribedthroughoutthePlan,includingbutnotlimitedtoroadway construction/reconstruction,stormwaterconveyanceandmanagementsystems,water andwastewaterimprovementsandparksandrecreationfacilities.Thenumberand locationofproposedimprovementsarecontainedin Table1. C. EconomicFeasibility(TexasTaxCode§311.011(c)(3)): Theoriginalplanpreparedin1999evaluatedtheeconomicpotentialoftheZone.The analysisdeterminedthattheareawithintheboundariesoftheZonesubstantiallyarrests andimpairsgrowthoftheCity,slowsdowntheprovisionofhousingaccommodationsand commercialdevelopmentandconstitutesaneconomicandsocialliability.Atthetimeof creation,theareaincludedintheTIRZwaspredominatelyopenandconsistedofproperty withdefectivetitlesanddelinquenttaxes.Theseconditionsalongwiththeenormous costofinfrastructureimprovementsincludingdrainageandsewer,impededthesound growthanddevelopmentofthearea.Asaresultitwasdeterminedthattheareawould benefitfromaTaxIncrementReinvestmentZone,whichfacilitatesinfrastructure improvementsandprojects.Theseimprovementswouldfacilitateresidentialand commercialdevelopmentinthearea. Exhibit1 constitutesincrementalrevenueestimatesforthisPlan.Theincremental revenueestimatesareprojectedtobesufficienttocoverthecostofproposed improvements.TheZoneandtheCityfindanddeterminethatthePlaniseconomically feasible. D. EstimatedAmountofBondIndebtedness;EstimatedTimeWhenRelatedCostsor MonetaryObligationsIncurred(TexasTaxCode§311.011(c)(4),§311.011(c)(5)): IssuanceofnotesandbondsbytheZonemayoccurastaxincrementrevenuesallow.The valueandtimingoftheissuanceofnotesorbondswillcorrelatetodebtcapacityas derivedfromtheprojectsandrevenueschedulesincludedin Table1 and Exhibit1,as wellasactualmarketconditionsfortheissueandsaleofsuchnotesandbonds. E. MethodsandSourcesofFinancingProjectCostsandPercentageofIncrementfrom TaxingUnitsAnticipatedtoContributeTaxIncrementtotheZone(TexasTaxCode§ 311.011(c)(6)): Methodsandsourcesoffinancingincludetheissuanceofnotesandbonds,developer advances,aswellascollaborationwiththecity,andotherentitiesforgrantfundingand partnerships.TaxincrementwillconsistofcontributionsfromtheCity,CountyandLa PorteIndependentSchoolDistrict.Thetaxingentitiesparticipateatthefollowingrates: 5 CityofLaPorte 100%ofitstaxrate HarrisCounty 75%ofitstaxrate LaPorteISD 100%ofitstaxrate,$0.86/100oftheISDtaxrategoestowardsTIRZprojectswith theremaindergoingtowardseducationalfacilities *LaPorteISDwillnotparticipateintheextensionofthelifeoftheZone. F. CurrentTotalAppraisedValueofTaxableRealProperty(TexasTaxCode§ 311.011(c)(7)): ThecurrentCitytaxableappraisedvalueoftaxablerealpropertyintheZoneis$356.3 million. G. EstimatedCapturedAppraisedValueofZoneDuringEachYearofExistence(TexasTax Code§311.011(c)(8)): TheestimatedcapturedappraisedvalueoftheZoneduringeachremainingyearof existenceiscontainedin Exhibit1. H. ZoneDuration(TexasTaxCode§311.011(c)(9)): TheZonewasestablishedbytheCityin1999andwillterminateonDecember31,2034. LaPorteparticipationintheZonewillendonDecember31,2029.TheZonemay terminateatanearliertimedesignatedbysubsequentordinance,oratsuchtime, subsequenttotheissuanceofproposedrevenuebonds,notesorotherobligations,ifany, thatallprojectcosts,bonds,andinterestonbondshavebeenpaidinfull. 6 Entities All 1 Revenues, Exhibit Zone Projected Zone Original City 2A Revenues, Exhibit and Values Projected Zone Original County, 2B Exhibit Revenues and Values Projected Zone Original ISD 2C Revenues Exhibit and Values Projected Annex 2013 City 2D Revenue, Exhibit and Values Projected Map1 ZoneBoundary Map2 ZoneBoundaryAerialView Map3 ZoneBoundaryPropertyClassification