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HomeMy WebLinkAboutResolution - 2002-R0481 - Agreement To Participate With Lubbock County In TIF - 11/14/2002Resolution No. 2002-RO481 November 14, 2002 Item No. 26 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an agreement with the Lubbock County to participate in the Lubbock Central Business District Tax Increment Finance Reinvestment Zone. Said Agreement is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this ATTEST: Rebecca Garza, City Secretary 14th day of November '2002. APPROV AS TO NTENT: Craig Fa er, irector of Planning APPROVED AS TO FORM: Linda L. Chamales, Supervising Attorney/ Office Practice Section LLC:.RES ccdocs/CBD TIF Res-Lubb Co. Resolution No. 2002-RO481 November 14, 2002 Item No. 26 CITY OF LUBBOCK AND LUBBOCK COUNTY AGREEMENT TO PARTICIPATE IN THE LUBBOCK CENTRAL BUSINESS DISTRICT TAX INCREMENT FINANCE REINVESTMENT ZONE This AGREEMENT is made and entered into by and between the City of Lubbock, (the "CITY"), a municipal corporation, and Lubbock County. (the "COUNTY"), a political subdivision of the State of Texas, pursuant to the authority granted by and in compliance with the provisions of the Tax Increment Financing Act, V.T.C.A., Tax Code, Chapter 311, and in furtherance of the purposes of these parties as provided by law. WITNESSETH: WHEREAS, in accordance with the provisions of the Tax Increment Financing Act, V.T.C.A., Tax Code, Chapter 311, (the "Act") and after due notice to the COUNTY and other taxing units levying real property taxes in the area, the City Council of the CITY, pursuant to Ordinance No. 2001-0091 (the "Ordinance"), adopted on December 3, 2001, created, established and designated the Lubbock Central Business District Reinvestment Zone ("CBD Reinvestment Zone") under the Act; and WHEREAS, the Act provides that each taxing unit levying taxes on real property in a reinvestment zone is not required to pay into the tax increment fund any of its tax increment produced from property located in the CBD Reinvestment Zone unless such taxing unit enters into an agreement to do so with the governing body of the municipality that created the zone; and WHEREAS, a tax increment agreement under the Act may be entered into any time before or after the zone is created, and such agreement may include any conditions for payment of the tax increment into the fund and must specify the portion of the tax increment to be paid into the Tax Increment Fund and the years for which that tax increment is to be paid into the Tax Increment Fund; NOW, THEREFORE, the CITY and the COUNTY, in consideration of the terms, conditions, and covenants contained herein, agree as follows: City and County Interlocal CBD TIF Agreement Page 1 Section 1. Definitions. a. "Act" means V.T.C.A., Tax Code, Chapter 311, the Tax Increment Financing Act, as amended. b. "Captured Appraised Value" means the total net taxable appraised value of the property located within the TIF District for the year less the Tax Increment Base of the TIF Taxing Units. "Project Plan" means the project plan and a reinvestment zone financing plan prepared in accordance with Section 311.011, Texas Tax Code, as approved by the CITY, and the CBD Reinvestment Zone Board of Directors. d. "TIF District" means the Lubbock Central Business District Tax Increment Reinvestment Zone, City of Lubbock, Texas, established by the Lubbock City Council, Ordinance No. 2001-0091, on December 3, 2001. C. "TIF Taxing Units" means those political subdivisions of the State of Texas authorized to impose ad valorem taxes on property located within the CBD Reinvestment Zone. f. "Tax Increment" means, for any given year, the amount of real property taxes levied and collected by the COUNTY for the year on the Captured Appraised Value of taxable property located in the TIF District. g. "Tax Increment Base" means the total appraised value of all real property located in the CBD Reinvestment Zone that is located in and taxable by the COUNTY as of January 1, 2001, the year in which the CBD Reinvestment Zone was designated, plus the total appraised value of all real property taxable by the COUNTY and annexed to the CBD Reinvestment Zone with the consent of the COUNTY, determined as of January 1 of the year in which the area was annexed to the CBD Reinvestment Zone. h. "Tax Increment Fund" means the fund created by Ordinance 2001-0091 and consisting of all the Tax Increment deposits, all revenues from the sale of tax increment bonds or notes, revenues from the sale of any property acquired as part of the Project Plan and Reinvestment Zone Financing Plan, and other revenues to be used in the development or redevelopment of the CBD Reinvestment Zone. i. "Total Tax Increment" shall mean the cumulative total amount of Tax Increment to be paid into the Tax Increment Fund by the COUNTY during the term of this Agreement, City and County Interlocal CBD TIF Agreement Page 2 Section 2. COUNTY Obligations. The COUNTY hereby agrees to pay to the CITY for deposit into the Tax Increment Fund, an amount equal to one hundred percent (100%) of the Tax Increment levied against the captured appraised value of the real property taxable by the COUNTY and located in the CBD Reinvestment Zone, not to exceed the Total Tax Increment, as defined, or until the twenty (20) year Term of this agreement is reached, except the following: a. Any funds which were levied by the COUNTY but were not collected, b. Any funds equal to tax refunds repaid by the COUNTY to taxpayers owning real property in the CBD Reinvestment Zone, C. Any funds which represent penalty, interest or attorney's fees on any delinquent tax payments made to the COUNTY by taxpayers owning real property in the CBD Reinvestment Zone, d. Any taxes uncollected by the COUNTY due to agriculture or other exemptions. Payment of such amount by COUNTY will be made within 90 days of date of delinquency for tax payments as prescribed by state law, or within 60 days following receipt of an invoice from the city, whichever is later. Any portion of the tax increment that is uncollected by COUNTY and withheld in accordance with this section but subsequently collected by COUNTY shall be paid to CITY within 60 days of receipt. Section 3. Conditions. This Agreement to deposit Tax Increment to the Tax Increment Fund for the Reinvestment Zone is based on the following conditions, and the CITY agrees and acknowledges the COUNTY's right to enforce the conditions contained herein by injunction or any other lawful means in the event one or more of such conditions are not satisfied: a. Only project costs for public improvements within the CBD Reinvestment Zone are to be paid with the Tax Increment, and b. In the case of the Tax Increment deposited to the credit of the Tax Increment Fund by the COUNTY, such Project Costs shall be limited to pay Project Costs for Infrastructure Improvements and other Public Improvements as set forth and identified in the Project Plan and Financing Plan. Section 4. CITY and CBD Reinvestment Zone Obli ations. a. CITY hereby agrees to place the funds paid by the COUNTY, as determined in Section 311.012 of the Act, into the Tax Increment Fund to be utilized in the "CBD City and County Interlocal CBD TIF Agreement Page 3 Reinvestment Zone" for expenses authorized in Project Plan or the Act. The Project also includes eligible government and educational expenses and facilities. Project costs also include direct costs properly chargeable under the Act and generally accepted accounting principles for the administration of the CBD Reinvestment Zone, including pro rata direct cost of any employee that works exclusively on TIF projects and administration. b. After all Project Costs have been paid or at the time of the termination of this Agreement, the CITY shall prepare and provide the COUNTY with a final accounting of the funds deposited to and disbursed from the Tax Increment Fund. C. Any funds remaining in the Tax Increment Fund following the final accounting by the CITY shall be paid to the Taxing Units in proportion to each taxing unit's share of the total amount of Tax Increment. Section 5. Termination of CBD Reinvestment Zone. Upon termination of the CBD Reinvestment Zone, all final expenses of CBD Reinvestment Zone shall first be paid from remaining funds. Any funds remaining thereafter shall be distributed to all participants in a ratio reflecting their annual contribution. Section 6. Boundary. The boundaries of the CBD Reinvestment Zone are and shall be those boundaries described in the Ordinance, or an amendment thereto revising the boundaries duly approved by the CBD Reinvestment Zone Board of Directors and the City Council of the CITY. Section 7. Term. The term of this Agreement shall be for twenty years from the date the Reinvestment Zone was created or until such time as the Total Tax Increment has been paid into the Tax Increment Fund by the COUNTY, whichever event shall be the first to occur. However, in the event the requirements of Section 311.013, Texas Tax Code, have not been satisfied, this Agreement will terminate three (3) years from the date the reinvestment zone was created. Section 8. Amendments to Project Plan. The Project Plan may be amended from time to time, in accordance with the Act. Amendments shall be approved by the CBD Reinvestment Zone Board of Directors and the City Council of the CITY. Amendments to the Plan that substantially change the nature and scope of the Project Plan as adopted December 3, 2001, shall be approved by the COUNTY. City and County Interlocal CBD TIF Agreement Page 4 Section 9. Responsibility for Negligent Acts. The CITY and the COUNTY shall each be responsible for the sole negligent acts of their officers, agents, employees or separate contractors. In the event of joint and concurrent negligence of both the CITY and the COUNTY, responsibility, if any, shall be apportioned comparatively in accordance with the laws of the State of Texas, without, however, waiving any government immunity available to the CITY and the COUNTY under Texas law and without waiving any defenses of the parties under Texas law. Section 10. Administration. The City Manager or his designees shall administer this agreement. Section 11. Notification. Whenever this Agreement requires or permits any consent, approval, notice, request, proposal, or demand from one party to another, the consent, approval, notice, request, proposal or demand must be in writing to be effective and shall be delivered to the party intended to receive it at the addresses shown below: If intended for the CITY, to: City Manager City of Lubbock P.O. Box 2000 Lubbock, Texas 79457 If intended for the COUNTY, to: County Judge Lubbock County P.O. Box 10536 Lubbock, Texas 79408 or to such other addresses as the parties may request, in writing, from time to time. Section 12. Agreement Subject to Laws. This Agreement is made subject to the provisions of the Charter and ordinances of CITY, as amended; Texas constitution, codes, and statutes; and all other applicable state and federal laws, regulations and requirements, as amended. Venue shall be in Lubbock County, Texas. Section 13. Complete Agreement. This Agreement embodies the complete understanding of the CITY and the COUNTY superseding all oral or written previous and contemporary agreements between the parties relating to matters herein. This Agreement may be amended, modified, or City and County Interlocal CBD TIF Agreement Page 5 supplemented only by an instrument in writing executed by the CITY and the COUNTY. Any alteration, additions or deletions to the terms of this Agreement required by changes in federal, state or local law or regulations will be automatically incorporated into this Agreement without written amendment, and shall become effective on the date designated by such law or regulation. EXECUTED this day the 14th day of November , 2002, by the Mayor of the CITY, duly authorized by Resolution No. 2002-80481 approved on November 14 , 2002, and by the COUNTY through its County Judge, duly authorized by Court Order the 28t' day of October, 2002. CITY OF GAL, MAYOR ATTEST: 4Rebecca Garza, City Secretary APPROVED AS TO CONTENT: a Vz, Craig FanKer, irector of Planning APPROVED AS TO FORM: Linda Chamales, Supervising Attorney Office Practice Section City and County Interlocal CBD TIF Agreement Page 6 LUBBOCK COUNTY: TOM HEAD, COUNTY JUDGE ATTEST: 4�& Doris Ruff, Wunty Clerk APPROVED AS TO FORM: B.J. "Beni" Hemmeline, Civil Chief Lubbock County Criminal District Attorney's Office