Loading...
HomeMy WebLinkAbout08-04-99 Workshop Meeting of La Porte Tax Increment Reinvestment Zone Board of Directors AGENDA WORKSHOP MEETING OF LA PORTE TAX INCREMENT REINVESTMENT ZONE BOARD OF DIRECTORS TO BE HELD AUGUST 4, 1999, IN THE COUNCIL CHAMBERS OF THE CITY HALL, 604 WEST FAIRMONT PARKWAY, LA PORTE, TEXAS, BEGINNING AT 6:00 P.M. * PRE-MEETING BUSINESS: EXECUTE STATEMENT OF APPOINTMENT FORMS FOR SECRETARY OF STATE - Martha Gillett, City Secretary 1. CALL TO ORDER - Alton Porter, Chairman 2. INTRODUCTIONS 3. ADMINISTER OATH OF OFFICE - Martha Gillett, City Secretary 4. INFORMATIONAL ITEMS AND BRIEFING ON TAX INCREMENT REINVESTMENT ZONE RELATED DOCUMENTS - John Joerns, Assistant City Manager (a) ORDINANCE 99-2325, CREATING TAX INCREMENT REINVESTMENT ZONE NO. 1 AND MAP SHOWING PROPOSED EXPANSION OF ZONE 1 (b) ORDINANCE 99-2328, ADOPTING FOR CITY OF LA PORTE, TEXAS TAX INCREMENT REINVESTMENT ZONE GUIDELINES , (c) ORDINANCE 99-2340, APPOINTING BOARD OF DIRECTORS POSITIONS 1-6 (d) LETTERS TO LA PORTE INDEPENDENT SCHOOL DISTRICT AND HARRIS COUNTY REGARDING THEIR APPOINTMENTS AND INVITATION TO AUGUST 4 MEETING (e) TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS IMPLEMENTATION SCHEDULE (f) INSURANCE COVERAGE FOR BOARD MEMBERS (1) GENERAL LIABILITY (2) ERRORS AND OMISSIONS 5. OVERVIEW OF TAX INCREMENT REINVESTMENT ZONES AND GUIDELINES ADOPTED BY CITY COUNCIL - John Joerns, &sistant City Manager 6. REVIEW DRAFT FINAL PROJECT PLAN AND PRELIMINARY FINANCING PLAN - David Hawes, Hawes, Hill And Patterson Consultants (NOTE: THESE DOCUMENTS WIll BE DISTRIBUTED AT THE MEETING) 7. OPEN DISCUSSION/QUESTIONS 8. DISCUSS NEXT MEETING DATE (pROBABLY AUGUST 10, 11 OR 12) AND PREFERRED MEETING NIGHTS. 9. ADJOURNMENT a ". ,. .t f J.:' .,;"* '~ --------------------------------------------------------------------------------l ~e ~tate of tlCexlT.6 Statement of Appointed Officer I. . do solemnlY swear for afllnnJ. Ilta. I bwe nor dlreefl, or Indlredbl paid. offered. promised to pa~. ClOnft'lbtUed. or PrOlnlsed fa contrlbule an1.' mDDU" 01' 'hl"" of varue. or pl'Otnlsed any PUbic otnce or emplcwrneof. as a reward '0 .ecure In", ..,POIhUnen, or CiOlJflnnatloh fhereof. &0 rJelp me God. Afflanf's Shmalllrt Office ro W'lfclJ AwolfJfed Clnr aud/Cll' Coun.v SWORN TO and subscribed before me by affiant on this ,19 day of SigIUIluro of Pcrsoa A~i111 Oath .' ,Il l'rinIed Nam~ ~______..__~________________J OATH OF OFFICE I, , do solemnly swear (or affmn), that I will faithfully execute the duties of the office of , of the City of La Porte, State of Texas, and will to the best of my ability preserve, protect and defend the constitution and laws of the United States and of this State and the Charter and ordinances of this City; and I furthennore solemnly swear (or affmn) that I have not directly or indirectly paid, offered, or promised to contribute any money, or valuable thing, or promised any public office or employment, as a reward to secure my appointment or the confirmation thereof. So help me God. Sworn to and subscribed before me this the day of Notary Public in and for the State of Texas . .. , Agenda Item 4 . You are not expected to become experts on this information by the August 4 meeting. . These documents are provided for your general information. The important aspects of these documents will be covered at the meeting. . If you have the time, I would suggest focusing on item 4 (b) Tax Increment Reinvestment Zone Guidelines and 4 (e) the Implementation Schedule ;. t:. .. '/ ": , A " t.. :, City of La Porte, Texas, Ordinance No. 99-2325 AN ORDINANCE DESIGNATING A CONTIGUOUS GEOGRAPffiC AREA WJ.TJ:L1.N CITY OF LA PORTE AS REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS, FOR TAX INCREl\'IENT FINANCING PURPOSES PURSUANT TO CHAPTER 311 OF THE TEXAS TAX CODE; CREATING A BOARD OF DIRECTORS FOR SUCH ZONE; CONTAINING FINDINGS AND PROVISIONS RELATED TO THE FOREGOING SUBJECT; FINDING COMPLIANCE WITH THE OPEN ~IEETINGS LAW; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECI'IVE DATE HEREOF. ....... WHEREAS, pursuant to Chapter 311 of the Texas Tax Code, the City may designate a contiguous geographic area within the City as a reinvestment zone if ~e area satisfies the requirements of certain sections of Chapter 311 of the Texas Tax Code; and WHEREAS, the City has prepared a preliminary reinvestment zone financing plan, which provides that City of La Porte City ad valorem taxes are to be deposited into the tax increment fund, and that taxes of other taxing units may be utilized in the financing of the proposed zone; and WHEREAS, the City provided written notice of the public hearing on the creation of the proposed zone, complying with the requirements of Chapter 311, Texas Tax Code, to the governing body of all taxing units levying taxes on property in the proposed zone; and WHEREAS, a notice of the May 24, 1999, public hearing on the creation of the proposed zone was published on NIay 16, 1999, in the Bayshore Sun, a newspaper of general circulation in the City; and WHEREAS, at the public hearing on May 24, 1999, interested persons were allowed to speak for or against the creation of the proposed zone, its boundaries, or the concept ofta:< increment C;'MY DOCtlMENTsITIRZ.\PROPOSED TIRZ CREAtION om (5-11-99).DOC ;.. ~. ... " :financing; and owners of property in the proposed zone were given a reasonable opportunity to protest the inclusion of their property in the proposed zone; and WHEREAS, evidence was received and presented at the public hearing in favor of the creation of the proposed zone under the provisions of Chapter 311, Texas Tax Code, and no significant evidence in opposition to the creation of the proposed zone was presented; and WHEREAS, no owner of real property in the proposed zone protested the inclusion of their property in the proposed zone; and WHEREAS, the City has provided all information, and made all presentations, given all notices and done all other things required by Chapter 311, Texas Tax Code, or other law as a condition to the creation of the proposed zone; and WHEREAS, the total appraised value of taxable real property in the proposed zone and all other reinvestment zones previously created by the City 1s approximately $ 6,250,000; and WHEREAS, the total appraised value of taxable real property taxable by Harris County, in which the proposed zone is located, is approximately $ 6,250,000; and WHEREAS, the total appraised value of real property taxable by the La Porte Independent School District, in which the proposed zone is located, is approximately $ 6,250,000; and WHEREAS, the total area within the proposed zone is approximately 1,120 acres; NOW THEREFORE, BE IT OIIDAINED BY THE CTIY COUNCll. OF THE CITY OF LA PORTE, TEXAS: C;\MYDOClJMENrS\IlRZ\PROPOSED TIRZ ClEAnoN ORD (5-il-99).DOC -2- ;. ". . 'r Section 1. FindiD2S. (a) That the facts and recitations 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. (b) That the City Council further finds and declares that the proposed improvements in the zone will significantly enhance the value of all the taxable real property in the proposed zone and will be of general benefit to the City. ( c) That the City Council further finds and declares that the proposed zone meets the criteria and requirements of Section 311.005 of the Texas Tax Code because the proposed zone contains substantial areas that are predominantly open and underdeveloped, and lack public water distnoution, wastewater collection and stonn drainage facilities, and have defective or unusual conditions of title, and exhibit deterioration of site or other improvements, which conditions substantially impair and arrest the sound growth of the CitY- (d) That the City Council, pursuant to the requirements of Chapter 311, Texas Tax Code, further finds and declares: (1) That the proposed zone is a contiguous geographic area located wholly within the corporate limits of the City of La Porte; (2) That the total appraised value oft~able real property in the proposed zone, and in the CitYs existing reinvestment zones, does not exceed fifteen percent o( the total appraised value of taxable real property in the City and in the industrial districts created by the City; c."MY DOCUMENl's\1'IRZ\PROPOSEO TIRZ CREAnoN om (S-I8-99).DOC -3- il ,. . '/ (3) That the proposed zone does not contain more than fifteen percent of .the total . appraised value of real property taxable by Harris County, the La Porte Independent School District; and (4) That the development or redevelopment of the property in the proposed zone will not occur solely through private investment in the reasonably foreseeable future. Section 2. Desi2Dation of the Zone That the City, acting under the provisions of Chapter 311, Texas Tax Code, including Section 311.005(a), does hereby designate as a reinvestment zone, and create and designate a reinvestment zone over, the area descnoed in Exhibit "A" and depicted in the map attached hereto as Exhibit "B" to promote the redevelopment of the area. The reinvestment zone shall hereafter be named for identification as Reinvestment Zone Number One, City of La Porte, Texas, (the "Zone"). The City Council specifically declares that the Zone is designated pursuant to Section 311.005(a)(l) of the Te.us Tax Code. Section 3. Board of Directors That there is hereby created a Board of Directors for the Zone, which shall consist of nine (9) members. Positions One through Six on the Board of Directors shall be reserved for the City. Positions Seven, Eight and Nine shall be reserved for other taxing units levying taxes within the Zone, , each of whom may appoint one director. Any taxing unit that appoints a director shall be assigned a Board position number in the order the City receives the appointment. Failure of a taxing unit to appoint a director by January 1,2000, shall be deemed a waiver of the right to appoint a director, and the City shall be entitled to appoint persons to these positions. C;\MY DOCtlMENTS\l1RZ\PROPOSED T.IRZ CREATION ORn (5-II-99).DOC -4- ;.' ,. . '7 ( The City Council is hereby authorized to immediately nominate and appoint the directors to Positions One through Five of the Board of Directors, and is further authorized to appoint City's Position Six at any time they deem necessary. City Council may nominate and appoint the directors to any position unfilled on January 1, 2000. The directors appointed to odd-numbered positions shall be appointed for two year terms, beginning on the effective date of this Ordinance, while the directors appointed to even-numbered positions shall be appointed to a one year term, beginning on the effective date of this Ordinance. All subsequent appointments shall be for two-year terms. The member of the Board of Directors appointed to Position Three is hereby designated to serve as the chair of the Board of Directors for a one-year term beginning on the effective date of this Ordinance. Thereafter the Mayor shall annually nominate and appoint, subject to City Council approval, a member to serve as chair for a term of one year beginning on the anniversary of the effective date of this Ordinance. The City Council authorizes the Board of Directors to elect from its members a vice-chairman and such other officers as the Board of Directors sees fit. The Board of Directors shall make recommendations to the City Council concerning the administration of the Zone. The Board of Directors shall prepare or cause to be prepared and adopt a project plan and a reinvestment zone financing plan for the Zone as described in Section 311.011, . Texas Tax Code, and shall submit such plans to the City Council for its approval. The City hereby delegates to the Board of Directors all powers necessary to prepare and implement the project plan and reinvestment zone financing plan, subject to approval by the City Council, including the power to employ any consultants or enter into any reimbursement agreements payable solely from the Tax C;\MY IlCiCUMENTSlTIRZ\PROPOSED TIRZ CREA110N ORD (S-IS.99).DOC -5- ) t. .. " Increment Fund established pursuant to Section 7 of this Ordinance, subject to the approval of the Fmance Director, that may be reasonably necessary or convenient to assist the Board of Directors in the preparation of the project plan and reinvestment zone financing plan and in the issuance of tax increment obligations. Section 4. Duration of the Zone That the Zone shall take effect on January 1, 2000, for the deposit of tax increments into the Tax Increment Fund established pursuant to Section 6 of this Ordinance, and tennination .of the operation of the Zone shall occur on December 31, 2029, or at an earlier time designated by subsequent ordinance, or at such time, subsequent to the issuance of tax increment bonds, ifany, that all project costs, tax increment bonds, notes and ~ther obligations of the Zone, and the interest thereon, have been paid in full. Section 5. Tax Increment Base That the Tax Increment Base of the City or any other taxing unit participating in the Zone for the Zone is the total appraised value of all real property taxable by the City or other taxing unit participating in the Zone and located in the Zone, determined as of January 1, 1999, the year in which the Zone was designated as a reinvestment zone (the "Tax Increment Base"). Section 6. Tax Increment Fund ~ That there is hereby created and established a Tax Increment Fund for the Zone which may be divided into sub accounts as authorized by subsequent ordinances. All Tax Increments, as defined hereafter, shall be deposited in the Tax Increment Fund. The Tax Increment Fund and any subaccount shall be maintained at the depository bank of the City and shall be secured in the manner C;\M'lDOCtJMENrs\'IlRm'ROPOSED mz CREAlION OiD (5-18-99)..DOC -6- ~. t .. , prescnoed by law for funds ofTccas cities. The ammal Tax Increment shall equal the property taxes levied by the City and any other taxing unit participating in the Zone for that year on the captured appraised value, as defined by Chapter 311 of the Texas Tax Code, of real property located in 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 Chapter 311 of the Texas Tax Code. All revenues from the sale of any tax increment bonds, notes or other obligations hereafter issued for the benefit of the Zone by the City, 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. Prior to the termination of the Zone, money shall be disbursed from the Tax Increment Fund only to pay project costs, as defined by the Texas Tax Code, for the Zone, to satisfy the claims of holders of tax increments bonds or notes issued for the Zone, or to pay obligations incurred pursuant to agreements entered into to implement the project plan and reinvestment zone financing plan and achieve their purpose pursuant to Section 311.01 O(b) of the Texas Tax Code. Section ,. Severability If any provision, section, subsection, sentence, clause or phrase of this Ordinance, or the application of same to any person to set circumstances, is for any reason held to be unconstitutional, . void or invalid, the validity of the remaining provisions of this Ordinance or their application to other persons or set of circumstances shall not be affected thereby, it being the intent of the City Council in adopting this Ordinance that no portion hereof or regulations connected herein shall become C;\MY DOCtJMENrs\~POSED TIR.Z CREATION ORD (5-18-99)..OOC -,- iA. r. ~ " inoperative or fail by reason of any unconstitutionality, voidness or invalidity of any portion hereof: and all provisions of this Ordinance are declared severable for that purpose. Section 8. ODen Meetin2s It is hereby found, determined and declared that a sufficient written notice of the date, hour, place and subject of the meeting of the City Council at wbich this Ordinance was adopted was posted at a place convenient and readily accessible at all times to the general public at the City Hall of the City for the Time required by law preceding its meeting, as required by the Open Meetings Law, Texas Government Code, Ch. 551, 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 hereof 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. Section 9. Notices The contents of the notice of the public hearing, which hearing was held before the City Council on May 24, 1999, and the publication of said notice, are hereby ratified, approved and confirmed. Section 10. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. C:IMY DOCtlMEN'TS\TlRZ\PR.OPOSED TmZ CREAnoN ORD (5-IS-99).OOC -8- ~. 1:. .. 'r PASSED AND APPROVED this J,tflJ-- day of (\'\(.\..1 . 1999. tlr~z4- No L. Malone Mayor ~: A . iJl'tJ.. lllt(l Martlia A Gillett City Secretary C:\MY DOCtlMENTs\'IIRZ\PROPOSED TIRZ C1lEAlION ORD (5-IIl-99).DOC -9- ~. ,. . ., EXHIBIT "A" 1 TIRZ Boundary STATE OF TEXAS COUNTY OF HARRIS A BOUNDS description of a reinvestment zone consisting of approximately 1120 acres of land situated in the J. Hunter Survey, Abstract No. 35, W.P. Harris Survey, Abstract No. 30, Richard Pearsall Survey, Abstract No. 625, and the George McKinstry Survey, Abstract No. 47; being more particularly descn'bed as follows: BEGINNING at the intersection of the south right-of-way line of McCabe Road with the east right-of-way line of State Highway 146; THENCE, in a westerly direction along the south right-of-way line of McCabe Road, and extending to the west approximately 1400 feet to the west line of the Union Pacific Railroad; THENCE, in a northerlY direction along the west line of said railroad approximately 4750 feet to its intersection with the extended south line of a 6.3192 acre tract of land conveyed to Don F. Ford recorded in Clerk's File No. H379832 of the Harris County Official Public Records ofRca! Property; THENCE, in an easterly direction across said railroad and along the extended south line of said 6.3192 acre tract of land approximately 1020 feet to its intersection with the west right-of-way line of South 16th Street; THENCE, in a northerly direction along the west right-of-way line of South 16th Street to its intersection with the south right-of-way line of Fainnont Parkway; THENCE, in a easterly direction along the south right-of-way line ofFairmont Parkway to the east right-of- way line of South 16th Street; THENCE, in a southerly direction along the east right-of-way line of South 16th Street to its intersection with the said south line of the 6.3192 acre tract as extended easterly; THENCE, in a easterly direction along the e.'<1ended south line of the 6.3192 acre tract to its intersection with the west right-of-way line of South 13th Street; THENCE, in a northerly direction along the west right-of-way line of South 13m Street to its intersection with the north right-of-way line of West '1(" Street; THENCE, in a easterly direction along the north right-of-Way line of West "K" Street to its intersection with the east right-of-way line of South 13lh Street; THENCE, in a southerly direction along the east right-of-way line of South 13lh Street to its intersection with the south line of the said 6.3192 acre tract as e.'<1ended east; THENCE, in an easterly direction along the e.'Ctended south line of the said 6.3192 acre tract to its intersection with the east right-of-way line of State Highway 146; THENCE, in a northerly direction along the east right-of-way line of State Highway 146 to its intersection with the north line ofa 19.17 acre tract recorded in Clerk's File No. L798941 of the Harris County Official Records of Real Property; THENCE, in an easterly direction along the north line of the said 19.17 acre tract to its intersection with the west line of the City of La Porte's Little Cedar Bayou Park; . iA. r:. - 'r EXHIBIT" A" 2 TIIENCE. in a northerly direction along the west line of Little Cedar Bayou Park e..ctended north to its intersection with the north right-of-way line of Little Cedar Bayou Drive (West"M" St); TIIENCE, in a easterly direction along the north right-of-way line of Little Cedar Bayou Drive to its intersection with the west right-of-way line of South 6th Street; TIIENCE, in a north~ly direction along the west right-of-way line of South 6th Street to its intersection with the north right-of-way line of West "K" Street; TIIENCE, in an easterly direction along the north right-of-way line of West "K" Street to its intersection with the east right-of-way line of South lit Street; TIIENCE. in a southerly direction along the east right-of-way line of South lit Street to its intersection with the north right-of-way line of West "M" Street; TIIENCE. in an easterly direction along the north right-of-way line of West "M" Street to its intersection with the west right-of-way line of South Broadway Street; TIIENCE, in a northerly direction along the west right-of-way line of South Broadway Street to its intersection with the south right-of-way line of Fairmont Parkway; TIIENCE, in a westerly direction along the south right-of-way line of Fairmont Parkway to its intersection with the,west right-of-way line of Bay Area Boulevard; TI1ENCE, in a northerly direction along the west right-of-way line of Bay Area Boulevard to its intersection with the south right-of-way line of West Main Street; TI1ENCE, continuing in a northerly direction to the intersection of the north right-of-way line of West Main Street and the west right-of-way line of Sens Road (North 26lb Street); TI1ENCE, continuing in a northerly direction along the west right-of-way line of Sens Road to its intersection with the southeast comer of a 13.2438 acre tract conveyed to La Porte Independent School District recorded in Clerk's File No. S583257 of the Harris County Official Public Records of Real Property; TI1ENCE. in a westerly direction along the south boundary of said 13.2438 acre tract to its southwest comer, TI1ENCE, in a northerly direction along the west boundary of said 13.2438 acre tract and extended to its intersection with the north right-of-way line of North "D" Street; TI1ENCE. in a easterly direction along the north right-of-way line of North "D" Street to its intersection with the east right-of-way line of Sens Road; TIIENCE, in a southerly direction along the east right-of-way line of Sens Road to its intersection with the north right-of-way line of West Main Street; TI1ENCE, in a easterly direction along the north right-of-way line of West :Main Street to its intersection with the east right-of-way line of San Jacinto Street as e.'Ctended northerly; TIIENCE. in a southerly direction along the east right-of-way line of San Jacinto Street to its intersection with the west right-of-way line of Bay shore Drive; TI1ENCE, in a northerly direction along the west right-of-way line of Bayshore Drive to its intersection with the north boundary of Sylvan Be:lCh Park as extended westerly; a 1'. . " EXHIBIT "A" 3 THENCE, in a easterly direction along the north boundary of Sylvan Beach Park to its intersection with Galveston Bay; THENCE, in a southerly direction meandering the shoreline of Galveston Bay to its intersection with the south right-of-way line of Grove Avenue; THENCE, in a westerly direction along the south right-of-way line of Grove Avenue to its intersection with the east right-of-way line ofBayshore Drive; THENCE, in a southerly direction along the east right-of-way line ofBayshore Drive to its intersection with the south right-of-way line of Hazel Avenue; THENCE, in a westerly direction along the south right-of-way line of Hazel Avenue to its intersection with the west right-of-way line of Bayshore Drive; THENCE, in a northerly direction along the west right-of-way line of Bay shore Drive to its intersection with the west right-of-way line of San Jacinto Street; THENCE, in a northerly ~on with the west right-of-way line of San Jacinto Street to its intersection with the east right-of-way line of Park Street; THENCE, in a southerly direction along the east right-of-way line of Park Street to its intersection with the north right-of-way line of Fairmont Parkway; THENCE, in an easterly direction along the north right-of-way line of Fairmont Parkway to its intersection with the west right-of-way line ofBayshore Drive; THENCE, in a southerly direction along the west right-of-way line of Bay shore Drive to its intersection with the south right-of-way line ofFairmont Parkway; THENCE, in a westerly direction along the south right-of-way line of Fairmont Parkway to its intersection with the east right-of-way line of Park Street; THENCE, in a southerly direction along the east right-of-way line of Park Street to its intersection with the north right-of-way line of Cedar Avenue; THENCE, in a westerly direction along the north right-of-way line of Cedar Avenue to the intersection with the west right-of-way line of Park Street; THENCE, in a northerly direction along the west right-of-way line of Park Street to its intersection with the west right-of-way line of San Jacinto Street; THENCE, in a northerly direction along the west right-of-way line of San Jacinto Street to its intersection with the south right-of-way line of West Main Street e:nonded; THENCE, in a westerly direction along the south right-of-way line of West Main Street to its intersection with the east right-of-way line of Bay Area Boulevard; THENCE, in a southerly direction along the e:lSt right-of-way line of Bay Area Boulevard to its intersection with the north right-of-way line of Fairmont Parkway; THENCE, in an e:lSterly direction along the north right-of-way ~e ofFairmont Parkway to its intersection with the west right-of-way line of Park Street; 11. 1:. .. 't .. EXHIBIT" A" 4 THENCE, in a southerly direction along the west right-of-way line ofP3I'k Street to its intersection with the south right-of-way line ofFairmont Parlcway; THENCE, in a westerly direction along the south right-of-way line ofFairmont Parlcway to its intersection with the east right-of-way line of South Broadway; THENCE, in a southerly direction along the east right-of-way line of South Broadway to its intersection with the south right-of-way line of McCabe Road e:rtended east; THENCE, in a westerly direction along the south right-of-way line of McCabe Road to its intersection with the extended west boundary line of the abandoned Tidewood Section One subdivision as recorded in Volume 66 Page 61 ofHanis County Map Records; THENCE, in a northerly direction along the extended west line of the said abandoned Tidewood Section One subdivision to its intersection with the nonh right-of-way line of McCabe Road; THENCE, in an easterly direction along the north right-of-way line of McCabe Road to its intersection with the west right-of-way line of South Broadway; THENCE, in a northerly direction along the west right-of-way line of Soudi Broadway to its intersection with the south right-of-way line of West '"Y" Street (abandoned); THENCE, in a westerly direction along the south right-of-way line of West "YO Street to the northwest comer o{ the said abandoned Tidewood Section One subdivision; THENCE, in a southerly direction along the west line of the said abandoned Tidewood Section One Subdivision and as it is e."Ctended south to its intersection with the south right-of-way line of McCabe Road; THENCE, in a westerly direction along the south right-of-way line of McCabe Road to its intersection with the center line of West Taylor Bayou; THENCE, in a southerly direction along the meandering centerli1ie of West Taylor Bayou to its intersection with the south city limit line of La Porte, Texas; THENCE, in a westerly direction along the southern La Porte city limit line to its intersection with the east right-of-way line of State Highway 146; . THENCE, in a northerly direction along the east right-of-way line of State Highway 146 to the point of beginning. ~. .r;- - . ~tJoom oLJaJ88 UlDOOO =OOOO[[]O OJ] 1 m[] r I DO..~ '. CR ~ rnrnrno co I moo ~ II )~~Q hBr ~ Q:': c= _rnrnrno OJ []Jo~~TI "~~ )~\) N.T.S. o II 00 I DO ODD ODD \o\) ~; ~cQ ~ nn I nr n ~ E'STlrr;fAIrfsTln, " "lflrln ~~aQ R\~G u ~ \ J II II UUUUUU LJLJULJLJLJLJUU~ ~~"6a\J f\~~' ~ ~ 0000000 ~oDo88BrnD~r CQ ~~~~\~~ i , BB8BB8"8~8888B088l8-f~~ );Q~"&Y\\)R ~, ~ rnmrnrnorn rn ~~~ ~ i 1: ~HiH, Bffi83t13n~ ra q ~ 000001 00088000 15 I'" ~RRRRR nRWo~~ II~ J L~ULJ_U UUU III II IL-JULd)M [--.0[:0 DO[ [111 OC - II I e:\} "'[ , l. =, I"': a:: ..... '~ .- --# ~ I ~ ~ .~ "~ ~ l~~' McCAa: RD. I bf" '- ~ ..'1~n7 I'f, ~~ ~'q.~ (~I I ~7 ~ ~ i\ , .Y(U~4 · ' . ~ t EXHIBIT uBJI il" ~, .. ~, ~ ~D"u" DODD n [J[] u WE~T III BOU 5 CUT BL~. JD " _lDUU DDDDDDDD [JD[] -- := [][J[] == II II ~~ 8JDDDD DDDODOD []][ [IJ[] -. - ][J[][ f- 0 E~~ - [U[[][)JD DO moo ~ I .' ~Q , ~~~i~ _LJJJrnrnD rn [IJDl ~~II IL/.~ )w'v~\j N.T.S. D~ II II ~DDD'-=-DD ODD' DDD~ ~~ \)~Q II II v E iT MNNliTiil! Jl!ln[)~Q G. O\)-\ , ~~ .: ODD .D~!DDD88BDDDD (\Q . n ^ ~ a J DDDB8DD .000 DDr-" D~ ~ )~, ~,/' DDD DD~DDDDD8DD= ~\~W\0>{~ ~ ~ HJrnOODD D[]]rnD~ = L~Q~~ c'. I IbCU[[][]] D[]]DODD~ -, ~~l~v~ '-C~ ; \, BBffiBi arntp8B~D - . ~ 'I Do ! 0 I-~DDDD DOt ~ ~ I I -f\.. iJJU A~R 10N MY " \ :!l. U Lj UL II 3 [~ * ~ ~ fir - I PROPOSED BOUNDARY CHANGES TO EXISTING T.I.R.Z. NO.1 LA PORTE, TEXAS 11m PROPOSED EXPANSION ~ .......... ~ 0 PROPOSED DELETION " I'mI BOUNDARY OF TIRZ NO. 1 . ." ~ (CREATED BY CLP ORD. 99-2325) =:T J!. .][.'nIl. ~I .If.. fit .~ '" ~\ )~ v I -,. 1 \'- ~ "",,11=:1 (...,. III ,L( iii ~, MA~BPPOSED ADDITIONS TO TIRZ NO. 1 ... \3 ,1'. ! .i ORDINANCE NO. 99 - 2 3 2 9 ... AN ORDINANCE ADOPTING TAX INCREMENT REINVESTMENT ZONE GUIDELINES FOR THE CITY OF LA PORTE; FINDING COMPLIANCE WITH THE OPEN :MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council of the City of La Porte hereby adopts Tax Increment Reinvestment Zone Guidelines, in form attached to this ordinance as Exhibit "A", incorporated by reference herein, and made part hereof for all purposes. Section 2. 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. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this ~LF'i--.. day of rl\I~\1 1 ,1999. ATTEST: ~0a/rt rc~C~. )11 f {all Martha A. Gillett City Secretary By~~~~ / .----~ APPROVEp.: / :,"-, ,..../ ,. V:;;;-"" . . J 4. , / . //([1",;11/, L~~ Knox W. Askins > City Attorney .' ~. r, . " .; EXHIBIT "A" CITY OF LA PORTE, TEXAS TAX INCREMENT REINVESTMENT ZONE GUIDELINES A. Purpose of Guidelines The purpose of these guidelines is to establish the policy of the City of La Porte as it relates to the power granted by Chapter 311 of the Texas Property Tax Code (Tax Code) and Article b, Section 1-g of the Texas Constitution (together cited as the Tax Increment Financing Act) to finance the development and redevelopment of unproductive, underdeveloped or blighted areas within the City. State law allows a municipality to designate an area as a Tax Increment Reinvestment Zone (Zone) to promote development or redevelopment of the area, if the City Council determines that development or redevelopment would not occur solely through private investment in the reasonably foreseeable future. There are two different methods of creating a Zone. One is City initiated and the other is initiated by the property owners. The second method has its beginning when a petition is submitted to the City. While a large portion of the law applies to both types, there are enough differences in creating the Zones that the two types will be discussed separately, beginning with the Zone created by petition. 1. Creation of Zone by Petition The owners of property constituting at least fifty (50%) percent of the appraised value of the property in an -area, may petition the City for the creation of a Zone. Such petition is legally required for creation of a Zone if the Zone contains more than ten (10%) percent residential property based on existing use (referred to as a Residential Zone, if less than 10%, it is referred to as a Commercial Zone). a. In considering a petition for creation of a Zone, Council will take into consideration the factors applicable to a City created Zone, which are described in Section A 2 a. Additional considerations are as follows: > 1. a decrease in the aggregate property value of at least twenty (20%) percent over the most recent ten (10) years; 2. a substantial absence, deterioration or substandard condition in the City's infrastructure, streets, water and waste water lines, and storm drainage; and 3. A statement certifying that "except for" the creation of the Zone, the reinvestment would not occur. 1 Revised sil.tJ99 b. The area within the Zone must be contiguous and be not less than twenty (20) acres. c. Documentation required with Petition Submission of a petition under 311.005(a)(5) of the Tax Code to create a Zone for the purpose of tax increment financing must be accompanied by a Preliminary Financing Plan. Both the petition and Preliminary Financing Plan must be finalized and submitted to the City on or before September 1,in order for a Zone to be created and to take effect the following tax year. The plan must include: 1. a description of the proposed boundaries of the proposed zone, including both a map (showing existing uses and conditions of real property in the Zone) and a legal description; 2. tentative plans and schedules for the development or redevelopment of the Zone, including conceptual drawings or descriptions of the public improvements proposed to be financed by the Zone, including a preliminary estimate of the total costs of the improvements; 3. an estimate of the general impact on the proposed Zone on property values and the tax revenues of the City and the other governmental entities levying ad. valorem taxes throughout the life of the proposed -Zone; 4. a schedule indicating total appraised values for the proposed Zone for the previous ten years (if available); 5. evidence that all tax arrearages and public liens on property owned or controlled by the petitioner has been satisfied; and 6. a statement certifying that "except for" the creation of the Zone, it would not be properly developed. 2. Creation of Zone by City An area may be designated as a Zone by the City Council, if it meets the conditions listed below: a. The area is determined to substantially arrest or impair the sound growth of the City because of the presence of: 1. substantial number of substandard, slum, deteriorated, or deteriorating structures; 2 Revised }/fl/99 2. the predominance of defective or inadequate sidewalk or street layout; 3. faulty lot layout in relation to size, adequacy, accessibility, or usefulness; 4. unsanitary or unsafe conditions; 5. the deterioration of site or other improvements; 6. tax or special assessment delinquencies which exceed the fair market value of the land; 7. evidence of chronic abandonment or demolition of commercial or residential structures; 8. defective or unusual conditions of title; 9. conditions that endanger life or property by fire or other cause; or that 10. the area of the proposed Zone is predominately open and because of obsolete platting, deterioration of structures or site improvements or other factors substantially impair or arrest the sound growth in the City. b. The area within the Zone must be contiguous and be not less than twenty (20) acres. . c. The area within the Zone currently contains ten percent (10%) or less residential use. The remainder of the guidelines apply to the Zone, regardless of whether it was created by petition or initiated by the City. B. Redevelopment Activities Redevelopment Activities for the Zone must: . 1. be in accordance with redevelopment and land use plans approved by the Planning and Zoning Commission, and consistent with the City's Comprehensive Plan; and 2. be reasonably likely to increase the aggregate taxable value of property within the Zone by at least twenty (20%) percent during the life of the Zone; and 3 Revised Sll~/99 . , 3. provide adequate infrastructure improvements to serve the Zone, including but not limited to streets, water and waste water facilities, and drainage structures, designed and constructed according to City standards; and 4. provide relocation assistance for Jow/moderate persons resident in the Zone who may be displaced by the implementation of the project plan (as defined by 311.002(2) of the Tax Code), and as such persons are defined by the U.S. Department of Housing and Urban Development. C. Procedures for Creating a Reinvestment Zone 1. Before adopting an ordinance providing for a Reinvestment Zone, these actions must occur, in the fOllowing sequence: a. City Council must schedule a public hearing to allow public comment on the proposed Zone. Notice of this hearing must be published in a newspaper having general circulation in the City at least seven (7) days prior to the hearing. b. At least sixty (60) days before the scheduled public hearing, City Council must notify in writing the other taxing jurisdictions that levy real property taxes in the Zone that it intends on establishing a Zone. This notice must contain: 1. a description of the proposed boundaries of the Zone; 2. tentative plans for development or redevelopment of the zone; 3. an estimate of the general' impact of the proposed Zone on property values and tax revenues. c. A Preliminary Financing Plan must be prepared and sent to the other affected taxing jurisdictions. D. Powers of the Zone 1. The City's current land Use Regulations and Zoning Ordinance shall apply to all development within the Zone. 2. However, the City may authorize by ordinance the enforcement. of additional land use controls authorized by statute subject to the following: a. Subject to the approval of the City Council, the board of the Zone may adopt additional powers granted by the provisions of state law found in Chapter 211, local Government Code necessary to implement the Zone Project Plan and Reinvestment Zone Financing Plan. 4 Revised S/Y1./99 . ., b. Any additional land use component shall include a description of the proposed land use regulations, a description of the economic and financial need for each land use regulation and a description of the effect of the comprehensive plan on the economic integrity of the Zone Project Plan and Reinvestment Zone Financing Plan. The land use component shall be reviewed annually by the Zone's board to ensure that both the public and private investment in the Zone are protected, and if additional restrictions are required, may approve amendments and changes for City Council review and approval. c. The Land Use Plan may impose maximum height, minimum square footage on new construction, maximum lot coverage and other restrictions to provide for sufficient private investment in the Zone's development or redevelopment to support Zone bonds, notes or obligations. d. Any additional land use controls shall be operative for at least the life of the Zone, and the Board may, with City Council approval, provide that a restriction adopted by the Board continues in effect after the termination of the Zone. If the land use controls continue after the termination of the Zone, such restrictions shall be treated as if adopted by the City in the first instance. e. The Board shall contract with the City for the purpose of enforcement of any additional land use controls authorized for use in the Zone. f. Essentially, the City's Zoning Ordinance establishes the process for identifying and terminating nonconforming uses. Lawful nonconforming uses in Zones may be terminated as follows: 1. when the .use ceases or is ~bandoned; or 2. when the primary structure has been demolished or when rehabilitation in excess of 50% of the assessed value of the improvement at the time of Zone. creation is completed; or 3. when a sufficient 'period of time has elapsed to allow the recovery of the owner or owners investment. in the nonconforming use or uses g. Nonconforming business uses may not be altered or expanded in any residential area in the Zone (e.g. no additional new employees, outside storage or parking may be created). 5 Revised 5J11199 .. .r 3. Under current Texas law, the City cannot delegate or extend to the Board its power of eminent domain. If the applicable state law is amended to permit the delegation of extension of such power, the policy of the City is not to authorize the delegation or extension of its power to the Board. In addition, the City will utilize its power of eminent domain within the Zone only if the City Council finds that a public purpose will be served by such an exercise of the City's power. If the Board proposes to condemn property for purposes related to redevelopment or urban renewal, the City will not exercise its power of eminent domain unless the City Council additionally finds that the property or the area immediately surrounding that property contains a substantial number of substandard, slum, deteriorated, or deteriorating structures. Provided, however, that in no event will the City condemn a residential homestead for purposes of redevelopment or urban renewal unless City Council finds that the property proposed to be condemned is, in fact, in a substandard or blighted condition. . 4. The City will hold a public hearing prior to the approval of a Land Use Plan for the Zone in accordance with the City's Zoning Ordinance. The City will provide notice to all property owners within the Zone by certified mail, return receipt requested not less than fifteen (15) days prior to the hearing. 5. The City Council by ordinance may authorize the Board to provide for the management and administration of a public improvement district created within the Zone, as provided in such district's service plan required by law. 6. The City will not consider the creation of Municipal Utility Districts within the Zone. E. Eligible Project Costs 1. In conformance with 311.002 of the Tax Code, the City shall consider the "except for" requirements required for the creation of the Zone and make a determination on a case by case basis of the project costs necessary to implement the Project Plan and Reinvestment Zone Financing Plan. In general, the City may consider the following project costs as eligible, but is neither obligated nor limited to the following: a. Off-site utilities required to bring utilities to the Zone (e.g. water, waste water, road and drainage facilities, street lighting and traffic lights); . b. Upgrade existing infrastructure to provide. additional capacity for future development of properties within the Zone (e.g. lift stations, 6 Revised 511!l99 ... ~, water and waste water improvements, turning laneslintersection improvements, waste water treatment plant enhancements); c. Land purchase for public facilities and construction of projects that serve the general public such as overpasses, interchanges roadway beautification, convention centers, amphitheaters, marinas, park improvements, etc. d. Oversizing of infrastructure within the Zone, including water, waste water, streets (arterial or greater), drainage (major channels and detention basins) and street lighting. e. Specialty items such as signage, streetscapellandscape improvements and including the construction of sound barriers, buffering landscape between residential and nonresidential uses, and common recreation areas shall be considered on a case by case basis. f. In general, the City will not consider as eligible costs the public infrastructure or land acquisition costs for individual developments within the TIRZ boundaries that serve only that development. g. Exceptions to the policy on eligible costs will be considered on a case by case basis. 2. The City may retain funds as provide in Chapter 311.002 of the Tax Code to be reimbursed for the following: a. administrative costs attributed to others, plus reasonable charges for the time spent by employees of the City in connection with the implementation of the Project Plan and Reinvestment Zone Financing Plan; b. the amount of any contribution made by the City from general revenue for the implementation of the project plan; and c. payments made at the discretion of the governing body of the City that the City finds necessary or convenient to the creation of the Zone or to the implementation of the Project Plan and Reinvestment Zone Financing Plan. F. Board of Directors The Composition of the Board of Directors is determined by the Tax Increment Financing Act. For a Commercial Zone (Jess than 10% of the Zone is currently residential use), the Board of Directors consist of at least five (5) and no more than fifteen (15) 7 Revised Slm/99 .. 'r members. Each taxing unit that ~.Ievies real property taxes in the Zone may appoint one member of the Board. City Council determines the total size of the Board and appoints the remaining members, not to exceed a total of fifteen (15) members. To be eligible for appointment, individuals will be a qualified voter in the City or be at least eighteen (18) years of age and own real property in the Zone. For a Residential Zone(more than 10% of the Zone is currently residential use), the Board of Directors consists of nine (9) members. Each participating school district or county may appoint one (1) member. The State Senator and the State Representative in whose districts the Zone is located are members of the Board. Each may designate another person to serve in hislher place. The remaining members are appointed by City Council. To be eligible for appointment, an individual must be eighteen (18) years of age or own real property in the Zone or be an agent of a person who owns real property in the Zone. Board members serve two (2) year terms. The chairman is appointed by City Council to serve a term of one (1) calendar year. G. Project Plan and Reinvestment Zone Financing Plan The Zone Board of Directors shall submit a proposed Project Plan and Reinvestment Zone Financing Plan for the approval of City Council. The Plans must be prepared in accordance with 311.011 of the Tax Code. H. Use of Funds 1. The tax increment or the proceeds of bonds, notes or obligations issued for any project or projects secured by the tax increment may be used for any purpose authorized in the Project Plan and Reinvestment Zone Financing Plan. 2. Proceeds shall be used for project facilities and improvements which are approved by the City and which have an estimated average useful life at least equal to the life of the Zone or notes financing such improvements, if any. 3. The funds of the Zone shall be budgeted, expended and audited in the same general manner as City bond and tax funds with such changes required by the provisions of state law. The costs of such City financial controls shall be included in the costs of administration of the Zone. The Zone budget must be submitted annually to the City Finance Department for approval. A copy of the Zone's Annual Audit must be forwarded to the City Secretary after Board approval. 8 Revised 5/J.1/99 . ./ " , c ~. r.. .. 'I ORDINANCE NO. 99-~ AN ORDINANCE APPOIN'l'ING MEMBERS OF THE BOARD OF DIRECTORS OF CITY OF LA PORTE REINVESTME:NT ZONE NUXBER ONE; FINDING COMPLIANCE WITH THE OPEN XEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: section 1. The City Council of the City of La Porte hereby nominates and appoints the following persons to serve as members of the Board of Directors of the City of La Porte Reinvestment Zone Number One, for the term beginning on the effective date hereof, and expiring on the date opposite their names, or until their successor shall have been duly appointed and qualified, to-wit: Position 1 Peggy Antone July 12, 2001 position 2 Deotis Gay July 12, 2000 July 12, 2001 July 12, 2000 July 12, 2001 position 3 Alton Porter, Chairman Position 4 Horace Leopard Position 5 Guy Rankin Position 6 Lindsay R. Pfeiffer July 12, 2000 section 2. 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. :. ~, ... or section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 12th day of July, 1999. CITY OF LA PORTE By: ~1r~ / torman. .'""Ma on . ayor ATTEST: ~ (J. J4dJJJJ Mar a A. Gillett City Secretary ) . ' APPROVED: /{- /~""'! . 'I "'~.. .0vv, 'Ie; L-b c:"'c,v?-. Knox W. Askins City Attorney 2 a ,.. .. " " D ~ '." 1', : "1 ~. City of La Porte Established 1892 July 28, 1999 Dr. John Sawyer Superintendent La Porte ISO 301 E. Fairmont Parkway La Porte, Texas 77571 Re: City of La Porte TIRZ #1 Dear Dr. Sawyer: Please recall the letter dated May 26, 1999 stated there is a Board position reserved for the school district. Although you have until January 1, 2000 to appoint a director you may wish to arrange for the appointment by the school district as soon as possible. Please note that La Porte City Council on July 12 appointed its 6 members to the TIRZ Board of Directors. The first meeting of the Board will be August 4 at"6:00 p.m. in City Hall Council Chambers. You or a representative of your organization is welcome to attend the Board meeting even though the district has not made its formal appointment. I have already notified David Webb of this meeting. The first meeting will focus on some organizational matters, a general overview of the TIRZ, and a review of the draft project plan and finance plan. If you have questions or comments, please do not hesitate to contact me. ~ c: David Webb, La Porte ISO Robert T. Herrera, City Manager David Hawes, Hawes, Hill and Patterson Consultants P.O. Box 1115. La POI1~. Texas 77572-1115. (281) .PI-S020 . ~ !.ri ~ Cit\7 of La Porte J E.'iti.lhiish.~d 1 S9 ~ July 28, 1999 Mr. David Turkel Economic Development Administrator Harris County 1310 Prairie, Suite 520 Houston, Texas 77002 Re: City of La Porte TIRZ #1 Dear Mr. Turkel: In a letter dated June 14, 1999, you stated that the County intends to make an appointment to the TIRZ Board and that Precinct 2 will make the recommendation for that appointment when the terms of the County's participation in the Zone are finalized. Please note that La Porte City Council on July 12 appointed its 6 members to the TIRZ Board of Directors. The first meeting of the Board will be August 4 at 6:00 p.m. in City Hall Council Chambers. You or a representative of your organization is welcome to attend the Board meeting even though the County has not made its formal appointment. The first meeting will focus on some organizational matters, a general overview of the TIRZ, and a review of the draft project plan and finance plan. If you have questions or comments, please do not hesitate to contact me. Sincerely, .'_ .0/..... :;Z2r'~ . .~" .,............-... ,.... "." / r'.~- . o'., \.:::=>~~:;'. I ' -/: '":". //JoOO J~, Assistant City Manager r c: Commissioner Jim Fonteno, Harris County A. C. Czigan, Harris County Robert T. Herrera, City Manager David Hawes, Hawes, Hill and Patterson Consultants it . , :'.,'J. 3,"1"\ .: t~ . ~...: .'::'-:. : ...\\..::'1 --5-: :: ~ I ~ , E ~ " r. : '1 :... TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS IMPLEMENTATION SCHEDULE 1. City Council Approves Ordinance Creating Zone Number One 5/24/99 City Council 2. City Council appoints Board Members to Zone 7/12/99 City Council 3. Formal Presentation to County Court on Annexation of Property into Zone 7/13/99 Consultant 4. City Council Committee Briefing on Implementation 7/14/99 Staff/Consultant . 5. Meet with County & LPISD Representatives Concerning Project Costs 7/15/99 -7/31/99 Staff/Consultant 6. Prepare "Draft" Project Plan and Reinvestment Zone Financing Plan 7/15/99 -7/31/99 Consultant . 7. Negotiate and Finalize Participation Agreements with other Taxing Units 7/15/99 - 8/19/99 Staff/ ConsultantlLPISD 8. Board Holds Organizational Meeting and Reviews Draft Project Plan & 8/3,4,5/99 TIF Board Reinvestment Zone Finanging Plan and LPISD Participation Agreement 9. Prepare "Final" Project Plan and Reinvestment Zone Financing Plan 8/4/99 - 8/11/99 Consultant 10. City Council Holds Public Hearing On Annexation of Property Into Zone 8/9/99 City Council 11. City Council Considers Ordinance Annexing Property Into Zone 8/9/99 City Council 12. Board Approves Project Plan & Reinvestment Zone Financing Plan 8/10,11,12/99 TI F Board 13. City Council considers Approval of Project Plan & Reinvestment Zone 8/23/99 City Council Financing Plan and LPISD Participation Agreement , ... ...;~' ....' Page I TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF lA PORTE, TEXAS IMPLEMENTATION SCHEDULE 14. Transmit Project Plan and Reinvestment Zone Financing Plan to Taxing 8/24/99 Staff Units 15. September & October Tasks: Consultant Prepares, Board and City Council Approve . Application for Redevelopment Authority . Articles of Incorporation, Bylaws . Appoint Redevelopment Authority Board Members (Same as Zone) . Tri-Party Agreement between Zone, City and Redevelopment Authority . Interlocal Participation Agreement Between Zone, City, and County ",ot\ ,~. .....~. Page 2 ': , F .. " r.. : .., ~ Agenda Item 4 (f) Insurance Coverage For Board Members . The following documents are excerpts from the City's Insurance Policy with the Texas Municipal League . The purpose of sharing these documents is to let you know that, as a Board member appointed by City Council, you will have general liability and errors and omissions coverage while acting within the scope of your official duties. . If you desire more information on this matter we can arrange for the City's Director of Administrative Services and/or the City Attorney to contact you. ~. t. .. " ~ , Agenda Item 4 (f) Insurance Coverage For Board Members · The following documents are excerpts from the City's Insurance Policy with the Texas Municipal League · The purpose of sharing these documents is to let you know that, as a Board member appointed by City Council, you will have general liability and errors and omissions coverage while acting within the scope of your official duties. · If you desire more information on this matter we can arrange for the City's Director of Administrative Services and/or the City Attorney to contact you. .l. r,. . 'f I. INSURING AGREEMENT The Fund will pay on behalf of the Member or Covered Party all sums which the Member or Cov- ered Party shall become legally obligated to pay as damages arising out of an occurrence that takes place during the Fund Year and within the Agree- ment Territory: A. Because of bodily injury, property damage, advertising injury, or personal Injury to which this self-insurance applies as stated in the Agree- ment, including claims within the completed operations hazard and the products hazard; and B. Because of bodily injury that arises from rendering or failure to render: 1. Incidental medical services or first aid (including transportation) at the scene of an accident or injury by any Covered Party not regularly engaged in the medical profession; or 2. Medical services (including transportation) by emergency medical technicians, paramed- ics, nurses and aides employed by or volun- teering on behalf of the Member's emer- gency medical service, if any, while in the course of their employment or duties as such. II. COVERED PARTIES Each of the following is a Covered Party under this Part of the Liability Coverage Document to the extent set forth below: A. The Member; B. Any officer, director, elected or appointed official, any member of a board or commission of the Member and any employee of the Member, when such person is acting within the scope of their duties or employment as such; and C. Any volunteer while acting within the scope of duties assigned by the Member and while under the general supervision of an officer, director, elected or appointed official, member of a board or commission of the Member or an employee of the Member. III. LIMITS OF LIABILITY Regardless of the number of (1) Members or Cov- ered Parties under this Agreement, (2) persons or 90132 P ART III GENERAL LIABILITY COVERAGE organizations who sustain bodily injury, property damage, personal injury or advertising injury, or (3) claims made or suits brought on account of bodily injury, property damage, personal injury, or advertising injury, the Fund's liability for the applicable Fund Year is limited as follows: A. The total liability for the Fund for all damages, including damages for care and loss of services, because of bodily injury, property damage, personal Injury , or advertising injury sustained by one or more persons as the result of anyone occurrence shall not exceed the limit of liability stated in the Declarations for General Liability for the applicable Fund Year as applicable to "each occurrence." B. With respect to the Member's liability arising out of any joint venture to which this self-insurance applies, the Fund shall not be liable for an amount greater than the pro rata share of any damages based on the number of participants in the joint venture, unless the Member's liability is ex- pressed otherwise contractually in the joint venture agreement. C. For the purpose of determining the limits of the Fund's liability, all bodily injury, property dam- age, personal injury, and advertising injury arising out of continuous or repeated exposure to substantially the same general conditions or con- tinuous or repeated publication or dissemination of substantially the same information shall be considered as arising out of one occurrence. D. Subject to the above provisions applicable to each occurrence, the total liability of the Fund for all damages because of bodily injury, property damage, advertising injury, or personal injury, regardless of the number of occurrences taking place during the Fund Year, shall not exceed the limit of liability stated in the Declarations for the applicable Fund Year as "aggregate." IV. EXCLUSIONS A. For the purpose of General Liability Coverage only, Exclusion B of the "Exclusions Applicable to All Coverages" shall not apply with respect to: 1. Bodily injury that arises at an airport or while on board an aircraft which is on the ground from rendering or failure to render: ;. r. _., L 200 10-1-98 a. incidental medical services or first aid (including transportation) at the scene. of an accident or injury by any Covered Party not regularly engaged in the medical profession; or b. medical services (including transporta- tion) by emergency medical technicians, paramedics, nurses and aides employed by the Member's emergency medical service, if any, while in the course of their employment as such; 2. Any premises which, although on premises designated as airport premises, are separate and distinct from those premises normal and customary to the operation of an airport or ownership, servicing, maintenance or opera- tion of aircraft. B. In addition to those other matters excluded from coverage in the "Exclusions Applicable to All Coverages," this General Liability Coverage does not apply to: 1. Any occurrences, claims or damages aris- ing out of the law enforcement activities of the Member or any Covered Party including, but not limited to, the prevention and control of crime, but this exclusion shall not apply to losses which arise solely from defects in premises occupied by or used by law enforce- ment or police departments; 2. The ownership, operation, use, loading, unloading or maintenance of an automobile; 3. Any occurrences, claims or damages for which coverage is otherwise afforded, orwould have been afforded if the Member had elected the coverage under the Automobile Liability, Law Enforcement Liability or Errors and Omis- sions Liability Coverages. it being intended by the parties that this coverage not overlap nor apply in addition to those coverages to the same occurrences, claims or damages; and 4. Claims or suits against the Member or Cov- ered Party for the recovery of damages or attorney's fees based upon the Member's: a. enactment or enforcement of allegedly invalid, unlawful or discriminatory ordi- nances, regulations. requirements, or restrictions; or l200 10-1-98 1 0 of 32 b. alleged noncompliance with or violation of applicable municipal, state or federal laws and regulations, unless such non- compliance or violation results in actual physical damages to property or actual ~ bodily injury to a person. . 5. Any medical services performed at any location specifically designed or used forthe purpose of providing such medical services, including all hospitals and other medical facilities where overnight medical care is provided or any clinic where emergency medical services are provided, but this ex- clusion shall not apply to losses arising out of operations of emergency medical personnel who are not employees of such medical facility, while in training or moving injured persons into or out of such facility, except that the coverage shall be excess of any other insurance available to the Member or Covered Party. C. For the purpose of this coverage only, subpara- graph 1.d.(1) of the Exclusion 0 of the "Exclu- sions Applicable to All Coverages" shall not apply to bodily injury or property damage arising out of the escape of fuel, lubricants or other operating fluids that are needed to perform the normal electrical, hydraulic or mechanical . functions necessary for the operation of mobile f equipment or its parts, if such fuels, lubricants o( ~ operating fluids escape from a vehicle part de- signed to hold, store or receive them. Subpara- 'graph 1.d.(1) of said Exclusion 0 shall apply ifthe fluids, lubricants or other operating fluids are intentionally discharged, dispersed or released, or if such fuels or lubricants or other operating fluids are brought on or to the premises, site or location with the intent to be discharged, dis- persed or released as part of the operations being performed by the Member or any contrac- tor or subcontractor. ;. t', . 'f PART VII ERRORS AND OMISSIONS LIABILITY COVERAGE I. INSURING AGREEMENT A. LIABILITY OF MEMBER OR COVERED PARTY The Fund will pay on behalf of the Member or Covered Party all monetary damages which the Member or Covered Party shall be legally obli- gated to pay for any civil claim or claims because of a wrongful act which occurs during the Fund Year and within the Agreement territory. II. COVERED PARTIES Each of the following is a Covered Party under this Part of the Liability Coverage Document to the extent set forth below: A. The Member; B. Any officer, director, elected or appointed official, any member of a board or commission of the Member, and any employee of the Memberwhen such Covered Parties are acting within the scope of their duties or employment as such; or C. Any volunteer while acting within the scope of duties assigned by the Member and while under the general supervision of an officer, director, elected or appointed official, member of a board or commission of the Member or an employee of the Member. III. LIMITS OF LIABILITY Regardless of the number of (1) Members or other Covered Parties under this Agreement, (2) per- sons or organizations who sustain damages pay- able under this Agreement, or (3) claims made or suits brought during the applicable Fund Year within the Errors and Omissions Coverage afforded by this Agreement, the Fund's liability is limited as follows: A. The total liability for the Fund for all damages arising out of a wrongful act shall not exceed the limit of liability stated in the Declarations for Errors and Omissions Liability Coverage for the applicable Fund Year; B. For the purpose of determining the Fund's limit of liability, all claims and damages arising out of a single wrongful act, interrelated wrongful acts or a series of related wrongful acts by one or more Covered Party(ies) shall be considered a single wrongful act. If such wrongful act takes place over more than one Fund Year in which L200 10-1-98 coverage is provided to the Member by this. Agreement, the wrongful act shall be deemed to have taken place during the first Fund Year during which any of the related wrongful acts occurred and coverage was provided under this Agreement and only the limit of liability during said first Fund Year shall apply; C. With respect to the Member's liability arising out of any joint venture to which this self-insurance applies, the Fund shall not be liable for an amount greater than the pro rata share of any damages based on the number of participants in the joint venture, unless otherwise expressed contractu- ally in the joint venture agreement; and D. Subject to the above provisions, the Fund's total limit of liability for all damages arising out of claims made for wrongful acts, regardless ofthe number of claims, Members or other Covered Parties involved, shall not exceed the amount stated in the Declarations for the applicable Fund Year as "aggregate." IV. EFFECTIVE DATES i For those Members participating in the Fund for '-: Errors and Omissions Coverage prior to June 1, 1985, this coverage shall extend to include wrongful acts occurring prior to the date that the Member first joined the Fund for Errors and Omissions Coverage if the Member did not give notice of such wrongful act to any prior insurers or the Member had no knowledge of such wrongful act likely to give rise to a claim. For those Members joining after June 1, 1985, this coverage begins on the actual date they entered the Fund for Errors and Omissions Cover- age and will not provide coverage for any claim or claims arising from wrongful acts which took place prior to the Prior Acts Period. V. RETROACTIVE DATE Except as provided otherwise under IV, Effective Dates above, this coverage does not apply to a wrongful act which occurred before the Retroactive Date, if any, shown in the Declarations. ;. r, . 'I 22 of 32 VI. exCLUSIONS A. For the purpose of this coverage only, Exclusion B in the "Exclusions Applicable to All Coverages" part, shall not apply with respect to any airport board or commission of the Member. B. In addition to those matters excluded from coverage in the "Exclusions Applicable to All Coverages" part of this Agreement, the Fund shall not be obligated to make any payment, nor to defend any lawsuit in connection with any claim made against any Member or Covered Party: 1. Based on or attributable to the Member or Covered Party gaining any personal profit or advantages to which the Member or Cov- ered Party was not legally entitled; 2. For the return by the Member or Covered Party of any remuneration paid to the Mem- ber or Covered Party in violation of law; 3. Brought about or contributed to by the dishonesty or fraudulent acts of the Covered Party; however, notwithstanding the forego- ing, the Member or Covered Party shall be protected under the terms of this Agreement as to any claims upon which suit is brought against them by reason of any all6ged dis- honesty or fraudulent acts on the part of them, unless a judgment or other final adjudication thereof adverse to them shall establish that acts of active and deliberate dishonesty or fraud committed by them with actual dishon- est or fraudulent purpose and intent were material to the cause of action so adjudicated; 4. For the loss of, criminal abstraction of, dam- age to or destruction of any tangible property or the loss of use of such property by reason of the foregoing; 5. For any damages or claim expense arising out of the law enforcement activities of the Member; 6. For any damages which result from a wrong- ful act committed intentionally with knowl- edge of wrong-doing; however, the Fund will provide a defense to the Member or Covered Party for suits containing those allegations; 7. Arising from a Member's or Covered Party's activities in a fiduciary capacity with respect to public property and funds, bond obligations and employee benefit and retirement funds and obligations; 23 of 32 8. Arising from activities of any attorney-at-law, medical personnel, architect, engineer or accountant in the scope of their professional duties; however, notwithstanding the forego- ing, the Member or Covered Party shall be protected under the terms of this Agreement as to any claims made against them solely as public officials or as employees of the Member; 9. Arising from a Member's or any Covered Party's failure to purchase insurance cover- age; or 10. For any damages, whether direct, indirect or consequential, arising from or caused by bodily injury, property damage, advertis- Ing Injury, personal injury, mental anguish or mental injury, except that damages for mental anguish or mental injury shall not be excluded from coverage when those dam- ages are sought in connection with the al- leged violation of a civil right guaranteed by the U.S. Constitution, the Constitution of the State of Texas or any state or federal statute. , C. This coverage does not apply to any occurrence, claim or damages for which coverage is other- wise afforded, or would have been afforded if the Member had elected the coverages, under the General Liability and Automobile Liability or the Law Enforcement Liability Coverages. it being intended by the parties that this coverage. not overlap nor apply in addition to any of the other coverages to the same occurrence, claim or damages. ;. .r-- L200 10.1.98 CHANGES TO LIABILITY COVERAGE DOCUNIENT Several improvements to the TML-IRP Liability Coverage Document were recently approved by the Poolts Board of Trustees to be effective October I, 1998. Revisions are detailed below. New Coverage Documents incorporating these changes will be primed and distributed to Pool members on or about 10/1/98. 1. . Changin~ Errors and Omissions CoveralZe to an Occurrence Basis: Section I and IV and Paragraph B of Section ill of Pan VII is amended to read: I. INSURING AGREEMENT A. LIABILITY OF MEMBERS OR COVERED PARTIES - -::. The Fund will pay on behalf of the Members or Covered Parties all monetary damages which the lVlembers or Covered Parties shall be legally obligated to pay for any civil claim or claims first made agams~ them dl:lI':n; :he Fand Year because of a wrongful act which occurs durinSS the Fund Year and within the Aereement territorY. first eommitted oori.B; the Prier ...~tts Pense, pro~..ided \'/rittea notke of sueR claim is receh"ed sy the Flm.d oorm; theYuBd Year or within twenty (20) days from the date that the ~.{ember withdruy.'s from the Fund. B:- LIABILITY OF ~..IEMBER TO INDEM~rrFY COVERED P.\R.TIES The Fand will :-eirnburse :he ~1embcr :or Jll dama~~s for whic!l "lO! the ~'Iember sllall be :-eqaired by 1a...'.' :0 bdemnify the Covered Parties J;amst :my ::vil elaim. or daims tirs! made a;:lins: :hem durin; tl:e FURd Y.ear or within t".\'emy (~O) dJ)'s from :be date that the :\1ember 7:1thdr:l.ws from t.ie Fund. ill. LIMITS OF LIABILITY Regardless of the number of (1) l\tlembers or other Covered Parties under this Agreement, (2) persons or organizations who sustain damages payable under this Agreement, Gr (3) claims made or suits brought during the applicable Fund Year within the Errors and Omissions Coverage afforded by this Agreement, the Fund's liability is limited as follows: . . B. For the purposes of determining the Fund's limit of liability, all claims and damages arising out of a single wrongful act, interrelated wrongful acts or a series of related wrongful acts by P:lge 1 of3 .l ,. . ., one or more Covered Party (ies) shall be considered a single wrongful act. If such wron2:ful act takes olace over more than one Fund Year in which coverae:e is provided to the Member bv this A2:reement. the wrone:ful act shall be deemed to have taken place during: [he first Fund Y ear durin~ which any of the related wromzful acts occurred and coverage was orovided under this A2I"eement and onlv the limit of liability during; said first Fund Year shall aoolv. .\11 claims, ',vkeneyer made, :kaJI be coasiderea :irs! :!lade duria; the YaRd Year in ':/hicl~ the earliest claim ar::ia; elut of Sl:iCR wron;ful act was first made and reported :R '.\"f:ting to tHe Yl:iB€!, and all suck claims shall be s1:1Gject to :he same limit of liability, i '\.. Ph- CONDITIONS A-:- EXTE~TDED DISCOVERY PERIOD If the FllRa :hall cancel or :efuse to renev: :2is .\~reemeRt, or if the l\fember shall cancel or not renew this .^...;ree:nent, the ~1ember s:tall have the ri;h!, l:ipon payment of an JdditionaI contrwutiOR, :0 :m exteHSion of the covera;e period ;:-anted by the .\;reemeRt in respect to any claim or claims whicJ. mtiy be first made apmst the Member d:arin; the period t'l;elve (12) moeths a::e: the date of such cancellation or non :ene'::aI, but o:aJy '.\'itk :espect to ilIlj' '7:ron;ful act committed durin; :he Prier f~et5 Perie€! and before the date of such c:mcella!ion or Bon renewal, proYided, ho'::e'ler, that :he application :or this extensioR must be made to the YUR€! in \\'riting ten (~O) days prior to :he efective date of canc~llation or ',T:ithin thir:;' (30) day follo':rin; :.ie e~~?irntion or c:mcellatioFl of this ."...;reement, 'il.'ith payment 0: my additional :ontribution :0 :,e :nade '..:irhin ::fteen (15) jays 1::e:- :b.e contribution is billed :,y :he F.nnd. F:lilure to pay any :le.ditional contribution ooe '::ithin the required time frame sJ.a~~ ':oie. the coyera;e in its emirety. T::e pr:y:ne:lt of addit:one.l :ont::butions shnll only extend the claim :iscoyery pe:~od :lne. : b.:l! 1 not inc~eQse !.lie FURd's liability :,eyond tho.t remainin; on tJe a.;;re;ate limit for this :oye:-a;e for uie Fund Year ::s :t exist: on :he date of cancellation or :lon renew:.l. B-:- NOTIC'!:" OF C!...\I~tJ If dur:::; :~e Fund Year or e~~te:lded disco':ery ,tJerioc: : 1. tte :\':!:ember or Covered Part)" :hnIl rece:ye '.'::-:tte:l ef o~:: :lot:ce from :1Oy po.r:y :.int it :s tJ.e i:lte:l::or. of sucb. p:.:::: :0 ~old them :espor.sible for the :e:ul:s of any spe::5ec wron~f1:il act dene or alleged to han Jee:l done du::n; :::e .\;reement Period by :hem ',\'l1ile ::c::::; :n :he c:';:lcit)' :lforememioned; or P:lge 2 of3 ;.. r. . ., ENTITY: LA PORTE ~ Contract No. DECLARATIONS OF COVERAGE 6707-97 IGENERAL LIABILITY LIMITS OF LIABILITY SUDDEN EVENTS INVOLVING POLLUTION DEDUCTIBLE ANNUAL CONTRIBUTION PRO-RATA DUE : $ 3,000,000 Each Occurrence :$ 2,000,000 Each Occurrence : $ 6,000,000 Annual Aggregate : $ 5,000 Each Occurrence : $ 67,422 EFFECTIVE DATE 10/01/97 :$ 67,422 ANNIVERSARY DATE: 10/01/98 ILAW ENFORCEMENT LIABILITY LIMITS OF LIABILITY :$ : $ : $ : $ :$ DEDUCTIBLE ANNUAL CONTRIBUTION PRO-RATA DUE 3,000,000 p,OOO,OOO 10,000 36,603 36,603 Each Occurrence Annual Aggregate Each Occurrence EFFECTIVE DATE ANNIVERSARY DATE: 10/01/97 10/01/98 ERRORS & OMISSIONS LIABILITY - CLAIMS MADE BASIS LIMITS OF LIABILITY DEDUCTIBLE ANNUAL CONTRIBUTION PRO-RATA DUE : $ :$ :$ :$ : $ 3,000,000 6,000,000 10,000 66,967 66,967 Each Wrongful Act Annual Aggregate Deductible Each Wrongful Act EFFECTIVE DATE 10/01/97 ANNIVERSARY DATE: 10/01/98 RETROACTIVE DATE: None TOTAL LIABILITY CONTRIBUTIONS TOTAL ANNUAL CONTRIBUTION :$ TOTAL PRO-RATA DUE :$ 170,992 EFFECTIVE DATE : 10/01/97 170,992 ANNIVERSARY DATE: 10/01/98 COVERAGE IS CONTINUOUS UNTIL CANCELLED. ANNUAL CONTRIBUTIONS ARE SUBJECT TO ADJUSTMENT EACH YEAR ON THE ANNIVERSARY DATE BASED ON UPDATED EXPOSURE INFORMATION AND CHANGES IN RATING. ..~ 10/16/97 TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL PAGE 1 L201 ~t ! .r t:.~d oed:- IL+' '4a,.r.If) ) 1 f1 r:rR~ 13C>lJ..d ~I j)~e$~ TAX INCREMENT REINVESTMENT ZONE NUMBER ONE CITY OF LA PORTE, TEXAS PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN DRAFT COpy August 4, 1999 TABLE OF CONTENTS Page PROJECT PLAN I. MAPS SHOWING EXISTING USES AND CONDITIONS OF REAL PROPERTY IN 2 THE ZONE AND MAPS SHOWING PROPOSED IMPROVEMENTS TO AND PROPOSED USES OF THAT PROPERTY II. PROPOSED CHANGES OF ZONING ORDINANCES, MASTER PLAN OF 2 MUNICIPALITY, BUILDING CODES, AND OTHER MUNICIPAL ORDINANCES III. LIST OF ESTIMATED NON-PROJECT COST ITEMS 2 IV. STATEMENT OF METHOD OF RELOCATING PERSONS TO BE DISPLACED AS A 2 RESULT OF IMPLEMENTING THE PLAN REINVESTMENT ZONE FINANCING PLAN I. A DETAILED LIST DESCRIBING THE ESTIMATED PROJECT COSTS OF THE 3 ZONE, INCLUDING ADMINISTRATIVE EXPENSES AND A STATEMENT LISTING THE KIND, NUMBER, AND LOCATION OF ALL PROPOSED PUBLIC WORKS OR PUBLIC IMPROVEMENTS IN THE ZONE II. ECONOMIC FEASIBILITY OF DEVELOPMENT WITHIN THE ZONE 4 III. THE ESTIMATED AMOUNT OF BONDED INDEBTEDNESS TO BE INCURRED 4 IV. THE TIME WHEN RELATED COSTS OR MONETARY.OBLlGATIONS ARE TO BE 4 INCURRED V. A DESCRIPTION OF THE METHODS OF FINANCING ALL ESTIMATED PROJECT 5 COSTS AND THE EXPECTED SOURCES OF REVENUE TO FINANCE OR PAY PROJECT COSTS, INCLUDING THE PERCENTAGE OF TAX INCREMENT TO BE DERIVED FROM THE PROPERTY TAXES OF EACH TAXING UNIT THAT LEVIES TAXES ON REAL PROPERTY IN THE ZONE VI. THE CURRENT TOTAL APPRAISED VALUE OF TAXABLE REAL PROPERTY IN 6 THE ZONE VII. THE ESTIMATED CAPTURED APPRAISED VALUE OF THE ZONE DURING EACH 6 YEAR OF ITS EXISTENCE VIII. DURATION OF THE ZONE 6 MAPS Page 1. ZONE BOUNDARY MAP 2. AERIAL MAP 3. CURRENT LAND USE MAP 4. LOCATION OF PROPOSED ROADWAY AND SIDEWALK IMPROVEMENTS 5. LOCATION OF EXISTING AND PROPOSED WATER LINES 6. LOCATION OF EXISTING AND PROPOSED SANITARY SEWER LINES 7. LOCATION OF EXISTING AND PROPOSED STORM SEWER LINES TABLES Page A. ESTIMATED ZONE PROJECT COSTS 3 B. PERCENTAGE OF INCREMENT DEDICATED TO THE ZONE 5 APPENIDX Page A. BOUNDARY DESCRIPTION B. ECONOMIC FEASIBILITY STUDY DRAFT 08.04.99 OVERVIEW Tax Increment Reinvestment Zone Number One, City of La Porte, Texas (the "TIRZ") 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 TIRZ is predominately open, consists of property with defective titles and delinquent taxes. 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 TIRZ will enter into Development Reimbursement Agreements. Developers may be reimbursed for funds advanced on behalf of the TIRZ for the design and construction of specific public facilities and related project costs as detailed in this Plan. This document constitutes the Project Plan and Reinvestment Zone Financing Plan as required by Chapter 311, Texas Tax Code. The purpose of the TIRZ is to facilitate the development/redevelopment of residential and commercial properties through the financing of: · Water, wastewater, drainage facilities; · Streets construction/reconstruction; . Landscaping; . Public Infrastructure costs associated with a Conference Center/Hotel; . Park Improvements . Parking facilities The public improvements to be constructed within the TIRZ 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 TIRZ and it is expected that the public improvements will spur additional development and redevelopment throughout the City of La Porte and the surrounding area. Project Plan and Reinvestment Zone Financing Plan 1 DRAFT 08.04.99 PROJECT PLAN 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 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 TIRZ 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 boundary and Map 2 shows the current land uses within the TIRZ. Map 3 shows the proposed public improvements to be constructed 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 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 This Plan calls for the development of substantially vacant property. Therefore, there is no displacement of property owners or residents. Project Plan and Reinvestment Zone Financing Plan 2 DRAFT 08.04.99 REINVESTMENT ZONE FINANCING PLAN 1. A DETAILED LIST DESCRIBING THE ESTIMATED PROJECT COSTS OF THE ZONE, INCLUDING ADMINISTRATIVE EXPENSES AND A STATEMENT LISTING THE KIND, NUMBER, AND LOCATION OF ALL PROPOSED PUBLIC WORKS OR PUBLIC IMPROVEMENTS IN THE ZONE Table A lists the estimated project costs for the Zone. It is anticipated that the taxing units and developers will advance funds for the public improvements and will be reimbursed as provided in separate agreements and other documentation between the taxing units, developers, the Redevelopment Authority (references made herein to the Authority are made in anticipation of its creation) and the Zone. The infrastructure improvement costs are stated in 1999 dollars and may be inflated by the CPI-U. Line Item amounts may be adjusted with approval of the TIRZ Board of Directors. It is anticipated that the La Porte Independent School District (LPISD) will expend approximately $29.7 million for education related project costs. As provided for in Chapter 311, Texas Tax Code and its participation agreement between the City, Zone and LPISD, the District may expend approximately 43%of its total tax participation for educational purposes. TABLE A Estimated Zone Project Costs Non-Education Projects Roadway & Associated Storm Drainage Improvements Powell Road Powell Road South McCabe Road (East of SH 146) McCabe Road (West of SH 146) San Jacinto Street Park Street Bayshore Drive Sens Road Fairmont Parkway Overpass Design and Construction of Sidewalks Sub-total Utility Improvements Design and construction of Drainage Design and Construction of Water Lines Design and Construction of Storm Sewer Design and Construction of Sanitary Sewer Design and Construction of Sidewalks Sub-total Conference Center Associated Costs Public Parking Facility Supporting Public Infrastructure Public Landscaping Estimated Costs 3,000,000 1,170,000 2,200,000 605,000 2,400,000 1,700,000 1,700,000 1,010,000 4,250,000 975,000 $ 19,010,000 4,095,000 450,000 1,209,000 2,700,000 975,000 $ 9,429,000 Sub-total 6,500,000 975,000 650,000 $ 8,125,000 Project Plan and Reinvestment Zone Financing Plan 3 DRAFT 08.04.99 1,150,000 65,000 1,140,000 1,040,000 500,000 45,625,000 75,000 200,000 $ 49,795,000 $ 86,359,000 . $29,700,000 $ 29,700,000 $116,059,000 2. ECONOMIC FEASIBILITY OF DEVELOPMENT WITHIN THE ZONE American Metro 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. 3. THE ESTIMATED AMOUNT OF BONDED INDEBTEDNESS TO BE INCURRED The estimated bonded indebtedness for non-education project costs is $86.4 million, which include principal and interest. 4. THE TIME WHEN RELATED COSTS OR MONETARY OBLIGATIONS ARE TO BE INCURRED Schedule 8.1 shows the time when revenue is expected to be available to pay for the project costs. Project Plan and Reinvestment Zone Financing Plan ~ DRAFT 08.04.99 5. A DESCRIPTION OF THE METHODS OF FINANCING ALL ESTIMATED PROJECT COSTS AND THE EXPECTED SOURCES OF REVENUE TO FINANCE OR PAY PROJECT COSTS, INCLUDING THE PERCENTAGE OF TAX INCREMENT TO BE DERIVED FROM THE PROPERTY TAXES OF EACH TAXING UNIT THAT LEVIES TAXES ON REAL PROPERTY IN THE ZONE Description of the methods of financing 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. If TIRZ bonds are issued, bond proceeds shall be used to provide for the project related costs outlined in this plan. It is anticipated that the Developer will advance project-related costs and be reimbursed through the issuance of TIRZ tax increment revenue bonds and/or be paid directly from increment revenues of the TI RZ as provided for in a Development Agreement. No bonds will be issued until adequate tax increment revenue has been created in the TIRZ to support bond debt service. Tax increment revenue will be applied to payor reimburse all debt service on the TIRZ bonds as prescribed in a Development Agreement. Expected Sources of Revenue to Finance or Pay Project Costs Schedule A and A.1 show the projected build-out schedule of the proposed residential and commercial development. Table B Percentage of Increment Dedicated to the Zone Taxing Unit La Porte City @ 100%* Harris County @ 100%* La Porte I.S.D. @ 100%** * Current Tax Rate - Projected Tax Rate Dedicated Tax Rate. $0.7050/$100 Valuation $0.4166/$100 Valuation $1.5000/$100 Valuation Years 30 30 30 Tax Increment Fund The City will create and establish a Tax Increment Fund for the TIRZ, which may be divided into sub-accounts as authorized by subsequent ordinances. The Tax Increment Fund and each account shall be maintained at the depository bank of the City of La Porte 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 TIRZ for that year on the captured Project Plan and Reinvestment Zone Financing Plan 5 DRAFT 08.04.99 appraised value, as defined by the Act, of real property located in the TIRZ that is taxable by the City or any other taxing unit participating in the TIRZ, 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 TIRZ, if any; all revenues from the sale of property acquired as part of the project plan and reinvestment zone financing plan, if any; and all other revenues to be used in the TIRZ shall be deposited into the Tax Increment Fund. Tax increment revenue derived from the property and proceeds of bonds issued to reimburse a Developer will be deposited to the related sub-account in the Tax Increment Fund. During the duration of the TIRZ, money shall be disbursed from the Tax Increment Fund only to pay project costs, as defined by the Texas Tax Code to satisfy the claims of holders of tax increment bonds or notes issued for the TIRZ, or to pay obligations incurred pursuant to agreements 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. 6. THE CURRENT TOTAL APPRAISED VALUE OF TAXABLE REAL PROPERTY IN THE ZONE The current total appraised value of real property in the TIRZ is $ million. 7. THE ESTIMATED CAPTURED APPRAISED VALUE OF THE ZONE DURING EACH YEAR OF ITS EXISTENCE It is projected that taxable property values in the TIRZ will increase to approximately $196 million by the year 2009. Schedule B shows the annual captured appraised value of these increases in property value during the build-out period. 8. DURATION OF THE ZONE The City of La Porte established the TIRZ by Ordinance No. 99-2325 and the TIRZ was created May 24, 1999, with the base year established as of January 1, 1999. The ordinance established that the TIRZ takes effect for purposes of collection of the Tax Increment on January 1, 2000 and termination of the operation of the TIRZ shall occur on December 31, 2029. The TIRZ may terminate at an earlier time designated by subsequent ordinance, or at such time, subsequent to the issuance of proposed revenue bonds, notes or other obligations, if any, that all project costs, bonds, and interest on bonds have been paid in full. Project Plan and ReinveSbnent Zone Financing Plan 6 DRAFT 08.04.99 SCHEDULES SCHEDULE A SCHEDULE A.1 SCHEDULE B SCHEDULE B.1 RESIDENTIAL BUILD-OUT COMMERCIAL BUILD-OUT APPRAISED VALUE REVENUE SCHEDULE Project Plan and Reinvestment Zone Financing Plan 7 SCHEDULE A LA PORTE TIRZ NUMBER ONE Developer Residential Buildout Schedule 2001 2002 2003 2004 2005 2006 2007 2008 2009 c g c g c g c g c g c g c g c g c g 0 0 0 0 0 0 0 0 0 1; II 1; II 1; II 1; GI 1; GI 1; II 1; GI 1; GI 1; II 2 :s 2 :s 2 :s :s :s 2 :s :s :s 2 :s 2 :s :s :s ii ii ii .. ii ii .. ii ii ii .. ii 1;; > 1;; > 1;; > 1ij > 1;; > 1;; > 1;; > 1;; > 1;; > c 6 c c c c c c c 0 ~ ~ 0 " 0 ~ 0 ~ 0 '5l 0 " 0 ~ 0 '5l 0 0 0 ! 0 0 0 .. 0 ! 0 0 .. ~ :s ~ :s ~ :s I :s I :s II :s I :s I :s ~ :s a a a a a ~ a a a a 0 III III III III III III III III III Residential Project Values :z: 0 :z: 0 :z: 0 :z: 0 :z: 0 :z: 0 :z: 0 :z: 0 :z: 0 Golf Course Lots 20 $ 3,700 20 $ 3,700 20 $ 3,700 20 $ 3,700 20 $ 3,700 20 $ 3,700 11 $ 2,035 7a Lots 10 $ 1,670 10 $ 1,670 10 $ 1,670 10 $ 1,670 10 $ 1,670 11 $ 1,837 00 Lots 13 $ 1,924 13 $ 1,924 13 $ 1,924 13 $ 1,924 13 $ 1,924 13 $ 1,924 8 $ 1,184 50' Lots 37 $ 4,995 37 $ 4,995 37 $ 4,995 37 $ 4,995 37 $ 4,995 37 $ 4,995 13 $ 1,755 Luxury Townhomes 10 $ 1,400 10 $ 1,400 10 $ 1,400 10 $ 1,400 10 $ 1,400 8 $ 1,120 Townhomes 10 $ 750 10 $ 750 10 $ 750 10 $ 750 ........ ~ ad. Total Horne Sales 0 20 80 90 100 100 100 92 29 611 id :........ ... Total Captured Value $0 $3,700 $12,289 $13,689 $14,439 $14,439 $14,439 $12,941 $4,059 $ 89,995 Note: 1. Captured value is presented in thousands of dollars. 2. Projected value of home construction is in 1999 dollars excluding inflation per the developer's projections. SCHEDULE A.1 LA PORTE TIRZ NUMBER ONE Developer Commercial Buildout Schedule 2001 2002 2003 2004 2005 2006 2007 2008 2009 c g c g c g c 52' c g c g c g 0 0 0 0 0 0 0 :n t; t; t; - t; :n t; GI GI GI GI GI GI GI 2 :l 2 :l 2 :l 2 :l 2 :l :l :l 2 :l ii ~ ~ ii ii 0- ii ii 1il > 1il 1il 11 > 11 > 11 > 11 > c c c c c c c 0 ~ 0 ~ 0 ~ 0 ~ 0 'C 0 ~ 0 ~ 0 0 0 0 0 f 0 0 ~ :l ~ :l I :l ~ :l ~ :l ~ :l ~ :l a a a a a a a III III III III III III III Comnerclal Project Values :I: 0 :I: 0 0 :I: 0 :I: 0 :I: 0 :I: 0 Apartments (310) $ 9,3JO $ 9,300 Assisted Living $ 3,840 Conference Center Hotel $ 7,400 Industrial- 2,700,000 sq. ft. $ 35,000 $ 17,500 $ 17,500 $ 17,500 $ 7,000 Retail $ 4SO $ 4,200 $ 4SO $ 4,200 ii, ~ i.;,i $ 133,640 I Total Captured Value $0 $0 $35,000 $7,850 $9,300 $30,640 $21,700 $17,950 $11,200 Note: 1. Captured value is presented in thousands of dollars. LA PORTE TIRZ NUMBER ONE Assessed Valuations SCHEDULE B City/LPISD City/CCISD/ Incremental Residential 20% $15,000 Senior/Disabled Citizens Exemption County Projected Projected Projected Tax Residential Incremental City/County/ISO LPISD No. of Cum. Number City County Cumulative Taxable Taxable Taxable Roll Assessed Assessed Homestead Homestead Homes No. of of Eligible Exemption Exemption Commercial Valuation for Valuation for Valuation for Jan 1 Valuation Valuation Exemption Exemption Added Homes Homes (1) Amount (2) Amount (3) Valuation City Tax County Tax CCISD Tax 1999 2000 2001 2002 3,700,000 3,700,000 (740,000) (300,000) 20 20 1 (60,000) (136,240) 2,900,000 2,823,760 2,660,000 2003 12,289,000 15,989,000 (3,197,800) (1,500,000) 80 100 5 (300,000) (681,200) $ 35,000,000 47,491,200 47,110,000 46,291,200 2004 13,689,000 29,678,000 (5,935,600) (2,850,000) 90 190 10 (570,000) (1,294,280) $ 42,850,000 66,022,400 65,298,120 63,742,400 2005 14,439,000 44,117,000 (8,823,400) (4,350,000) 100 290 15 (870,000) (1,975,480) $ 52,150,000 86,573,600 85,468,120 83,093,600 2006 14,439,000 58,556,000 (11,711,200) (5,850,000) 100 390 20 (1,170,000) (2,656,680) $ 82,790,000 128,464,800 126,978,120 123,784,800 2007 14,439,000 72,995,000 (14,599,000) (7,350,000) 100 490 25 (1,470,000) (3,337,880) $ 104,490,000 161 ,416,000 159,548,120 155,536,000 2008 12,941,000 85,936,000 (17,187,200) (8,730,000) 92 582 29 (1,746,000) (3,964,584) $ 122,440,000 189,442,800 187,224,216 182,458,800 2009 4,059,000 89,995,000 (17,999,000) (9,165,000) 29 611 31 (1,833,000) (4,162,132) $ 133,640,000 203,803,000 201,473,868 196,471,000 Total $ 89,995,000 611 Note: 1. Number of homes eligible for exemption is assumed to be 5% of total number of homes. 2. The City's senior or disabled citizen exemption is estimated at $60,000 per home. 3. The County's senior or disabled citizen exemption is estimated at $136,240 per home. 4. LPISD homestead exemption is 20%+$15,000 per home. Page 1 of2 LA PORTE TIRZ NUMBER ONE Zone Revenue Schedule SCHEDULE B.1 Non Non Non Non-Ed. Non-Ed. Non-Ed. Education Total Non-Ed. Cumalitive Education Education Education Education City County LPISD LPISD Zone Zone Revenue Tax Coil. City County LPISD LPISD Zone Zone Zone Zone Revenues Available for Year Year Tax Rate Tax Rate Tax Rate Tax Rate Collection Collection Collection Collection Available Non-Ed Projects 1999 2000 2001 2002 2002 2003 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 19,972 $ 11,411 $ 22,190 $ 16,513 $ 53,573 $ 53,573 2003 2004 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 327,072 $ 190,372 $ 386,161 $ 287,376 $ 903,606 $ 957,178 2004 2005 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 454,696 $ 263,871 $ 531,739 $ 395,713 $ 1,250,306 $ 2,207,485 2005 2006 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 596,232 $ 345,378 $ 693,167 $ 515,845 $ 1 ,634,778 $ 3,842,262 2006 2007 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 884,737 $ 513,121 $ 1,032,613 $ 768,456 $ 2,430,471 $ 6,272,733 2007 2008 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,111 ,672 $ 644,737 $ 1,297,481 $ 965,567 $ 3,053,890 $ 9,326,624 2008 2009 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1 ,304,693 $ 756,577 $ 1,522,071 $ 1,132,704 $ 3,583,341 $ 12,909,965 2009 2010 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,403,591 $ 814,160 $ 1 ,638,961 $ 1,219,692 $ 3,856,712 $ 16,766,677 2010 2011 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,429,838 $ 829,385 $ 1,669,610 $ 1,219,692 $ 3,928,833 $ 20,695,510 2011 2012 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1 ,456,576 $ 844,894 $ 1,700,831 $ 1,219.692 $ 4,002,302 $ 24,697,812 2012 2013 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,483,814 $ 860,694 $ 1,732,637 $ 1,219,692 $ 4,077,145 $ 28,774,957 2013 2014 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,511,562 $ 876,789 $ 1,765,037 $ 1,219,692 $ 4,153,388 $ 32,928,344 2014 2015 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1 ,539,828 $ 893,185 $ 1,798,043 $ 1,219,692 $ 4,231,056 $ 37,159,400 2015 2016 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,568,623 $ 909,887 $ 1,831,667 $ 1,219,692 $ 4,310,177 $ 41,469,577 2016 2017 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,597,956 $ 926,902 $ 1,865,919 $ 1,219,692 $ 4,390,777 $ 45,860,354 2017 2018 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,627,838 $ 944,235 $ 1,900,812 $ 1,219,692 $ 4,472,885 $ 50,333,238 2018 2019 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,658,278 $ 961 ,892 $ 1,936,357 $ 1,219,692 $ 4,556,527 $ 54,889,766 2019 2020 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,689,288 $ 979,880 $ 1,972,567 $ 1,219,692 $ 4,641,735 $ 59,531,501 2020 2021 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,720,878 $ 998,204 $ 2,009,454 $ 1,219,692 $ 4,728,535 $ 64,260,035 2021 2022 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,753,058 $ 1,016,870 $ 2,047,031 $ 1,219,692 $ 4,816,959 $ 69,076,994 2022 2023 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,785,840 $ 1,035,885 $ 2,085,310 $ 1,219,692 $ 4,907,036 $ 73,984,030 2023 2024 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,819,236 $ 1,055,256 $ 2,124,305 $ 1,219,692 $ 4,998,797 $ 78,982,827 2024 2025 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,853,255 $ 1,074,990 $ 2,164,030 $ 1,219,692 $ 5,092,275 $ 84,075,102 2025 2026 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,887,911 $ 1,095,092 $ 2,204,497 $ 1,219,692 $ 5,187,500 $ 89,262,602 2026 2027 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,923,215 $ 1,115,570 $ 2,245,721 $ 1,219,692 $ 5,284,507 $ 94,547,109 2027 2028 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,959,179 $ 1,136,431 $ 2,287,716 $ 1,219,692 $ 5,383,327 $ 99,930,436 2028 2029 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 1,995,816 $ 1,157,683 $ 2,330,497 $ 1,219,692 $ 5,483,995 $ 105,414,431 2029 2030 $ 0.710 $ 0.417 $ 0.860 $ 0.640 $ 2,033,138 $ 1,179,331 $ 2,374,077 $ 1,219,692 $ 5,586,546 $ 111,000,977 S 40,397,793 S 23,432,683 S 47,170,500 S 29,695,706 S 111,000,977 Page 2 of 2