2013-12-02 Special Meeting of La Porte City Council

Browse Search

LOUIS RIGBY Mayor JOHN ZEMANEK Councilmember At Large A DOTTIE KAMINSKI Councilmember At Large B MIKE MOSTEIT Councilmember District 1 CHUCK ENGELKEN Councilmember District 2 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF LA PORTE DECEMBER 2, 2013 DARYL LEONARD Councilmember District 3 TOMMY MOSER Councilmember District 4 JAY MARTIN Mayor Pro Tern Councilmember District 5 MIKE CLAUSEN Councilmember District 6 The City Council of the City of La Porte met in a special meeting on Monday, December 2, 2013, at the City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, at 5:00 p.m. to consider the following items of business: CALL TO ORDER Mayor Rigby called the meeting to order at 6:00 p.m. Members of Council present: Councilmembers Leonard, Zemanek, Kaminski, Mosteit, Martin, and Clausen. Also present were City Secretary Patrice Fogarty, City Manager Corby Alexander, and Assistant City Attorney Clark Askins. Absent: Councilmembers Engelken and Moser. 2. DISCUSSION OR OTHER ACTION (a) Discussion or other action regarding tax increment reinvestment zones (TIRZ): creation, criteria for creation; financing; authorized improvements; administration; eligible project costs; responsibilities of municipality; changing boundaries of existing zone; board; project plan and reinvestment zone financing plan; determination of amount of tax increment; termination of reinvestment zone; any other TIRZ-related items — David Hawes, Hawes Hill Calderon LLP. David Hawes provided a PowerPoint presentation and advised Council regarding the laws and procedures of establishment of a TIRZ. A Tax Increment Reinvestment Zone ("TIRZ') is a development and redevelopment financing tool created under the provisions of the Texas Tax Code Chapter 311, the Tax Increment Financing Act ("Chapter 311"). A TIRZ provides a method to finance improvements in a specifically designated zone using property tax increment funds. Cities may designate a specific geographic area as a Reinvestment Zone to promote development or redevelopment of the area if such development would not occur solely through private investment in the reasonably foreseeable future. Therefore, the basis for establishing a TIRZ is to facilitate the development or redevelopment of an area that would not occur without the City's intervention. When questioned specifically about La Porte ISD's involvement in the TIRZ, Mr. Hawes reported La Porte ISD participates at a hundred percent of its tax rate in the Tax Increment Reinvestment Zone. The taxes are collected by the City of La Porte on behalf of La Porte Independent School District and in a plan approved by La Porte City Council, 86 percent of the taxes goes into funding projects within the financing project plan and the difference between the 86 cents and the total tax rate is rebated back to La Porte ISD to pay for educational facilities and/or other purposes within the district. Mr. Hawes explained the City's creation of the TIRZ, and how the creation of a TIRZ is a financing mechanism. He touched on the following information regarding tax increment reinvestment zones: the premise and laws providing for creation for the purpose of promoting development or redevelopment of the area if the governing body determines that development or redevelopment would not occur solely through private investment in the reasonably foreseeable future. He spoke on the responsibilities of a municipality prior to creation of a TIRZ. Before adopting an ordinance providing for a reinvestment zone, the governing body must prepare a preliminary reinvestment zone financing plan, send copy of the plan to the governing body of each taxing unit that levies taxes on real property in the proposed zone, hold a public hearing on the creation of the Page 1 of 3 December 2, 2013, Council Meeting Minutes