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HomeMy WebLinkAboutOrdinance - 2021-O0152 - Northwest Passage PID Assesment(�;.w} o�' Lubbocic CoUn�r -iI,�-9 ✓/ � CITY OF LUBBOCK COUNTY OF LUBBOCK STATE OF TEXAS � 0 0 2021058695 1 :S ORD ���� �� ��� A�������� ��� 1� �� � CERTIFICATE TO COPY OF PUBLIC RECORD I hereby certify, in the performance of the functions of my office, that the attached instrument is a full, true and correct copy of Ordinance No. 2021-00152, as the same appears of record in my office and that said document is an official record from the public offce of the City Secretary of the City of Lubbock, Lubbock County, State of Texas, and is kept in said office. The total number of pages within the attached document is 8 pages. I further certify that I am the City Secretary of the City of Lubbock, that I have legal custody of said record, and that I am a lawful possessor and keeper and have legal custody of the records in said office. In witness whereof I have hereunto set my hand and affixed the official seal of said office the 2"� day of November, 2021. (City Seal) Re cca Garza City Secretaiy City of Lubbock Lubbock County, State of Texas '.y, � •�-;� •�1 a'�.r.:) :��'� ,,3. �., . � , :��, . First Reading October 26, 2021 Item No. 8.3 Second Reading November 1, 2021 Item No. 6.7 ORDINANCE NO. 2021-00152 AN ORDINANCE ADOPTING A SERVICE PLAN FOR THE NORTHWEST PASSAGE PUBLIC IMPROVEMENT DISTRICT, WITH SUCH SERVICE PLAN INCLUDING AN ASSESSMENT PLAN FOR SAID PUBLIC IMPROVEMENT DISTRICT; ESTABLISHING REASONABLE CLASSIFICATIONS AND FORMULAS FOR THE APPORTIONMENT OF THE COST BETWEEN THE CITY OF LUBBOCK, TEXAS AND THE NORTHWEST PASSAGE PUBLIC IMPROVEMENT DISTRICT, AND THE METHODS OF ASSESSING SPECIAL BENEFITS FOR VARIOUS CLASSES OF IMPROVEMENTS OF PROPERTY WITHIN THE NORTHWEST PASSAGE PUBLIC IMPROVEMENT DISTRICT; APPROVING, ADOPTING, AND FILING WITH THE CITY SECRETARY OF THE CITY OF LUBBOCK, TEXAS AN ASSESSMENT ROLL FOR THE NORTHWEST PASSAGE PUBLIC IMPROVEMENT DISTRICT; AND, LEVYING THE ASSESSMENT FOR THE NORTHWEST PASSAGE PUBLIC IMPROVEMENT DISTRICT AS A SPECIAL ASSESSMENT, SPECIFYING THE METHOD OF PAYMENT OF THE ASSESSMENT, AND FIXING CHARGES AND LIENS AGAINST THE PROPERTY IN THE NORTHWEST PASSAGE PUBLIC IMPROVEMENT DISTRICT AND AGAINST THE OWNERS OF PROPERTY WITHIN THE NORTHWEST PASSAGE PUBLIC IMPROVEMENT DISTRICT. WHEREAS, Chapter 372 of the Texas Local Government Code (the "Act") provides the process by which the City of Lubbock, Texas (the "City") may create a public improvement district; and WHEREAS, through Resolution No. 2021-RO363 the City Council of the City (the "Council") authorized the Northwest Passage Public Improvement District (the "PID"); established the boundaries of the PID; approved the estimated costs, method of assessment, and apportionment of costs for the PID; and, created the initial advisory board for the PID; and WHEREAS, through Resolution No. 2021-R0413, the Council directed City staff to: (1) prepare a Service Plan for the PID according to the Act with such Service Plan covering a period of at least five (5) years, defining the annual indebtedness of the PID, projecting the costs for improvements in the PID, and including an assessment plan for the PID; (2) prepare an assessment roll for the PID that states the assessment against each parcel of land in the PID, with such proposed assessment roll to be filed with the municipal secretary and being made available for public inspection; (3) send and publish notice of a public hearing according to the Act concerning the Service Plan; and WHEREAS, City staff has prepared a Service Plan for the PID according to the Act, prepared an assessment roll for the PID, and has sent and published notice of a public hearing to be held at five o'clock in the evening (5:00 PM), Tuesday, October 26, 2021, in the City Council Chambers, 1314 Avenue K, Lubbock, Texas, to consider the proposed apportionment and assessment for the PID; and WHEREAS, at the adjournment of the public hearing the Council desires to hear and pass on any objections to the proposed assessment for the PID and, through this Ordinance, to establish reasonable classifications and formulas for the apportionment of the costs for the services and improvements of the PID between the City and the PID, to approve, adopt, and file with the City Secretary the Service Plan for the PID that includes an assessment plan and assessment roll for the PID, and to levy an assessment as a special assessment on the property within the PID; and NOW, THEREFORE; BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1: THAT the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. SECTION 2: THAT the Council has reviewed the Service Plan for the PID, which is attached to this Ordinance as "Exhibit I", and finds that it: covers a period of at least five (5) years; defines the annual indebtedness of the PID; estimates the costs for improvements in the PID; and, includes an assessment plan for the PID. SECTION 3: THAT the Council hereby finds that the assessment rate provided in the Service Plan for the PID is feasible and sound and will serve the needs and desires of the property owners within the PID, and the Council hereby adopts the assessment rate of fifteen cents ($0.15) per one hundred dollars ($100) of net taxable value for tax year 2022, as determined by the Lubbock Central Appraisal District, of the property or improvements to the property located in the PID. SECTION 4: THAT the Council finds that the assessment plan included in the Service Plan for the PID provides for the apportionment of the cost of improvements to be assessed against the property within the PID on the basis of special benefits accruing to the property within the PID because of the improvements, and the Council hereby establishes the reasonable classifications and formulas for the apportionment of the costs between the City and the PID and the methods of assessment of the special benefits for the various classes of improvements within the PID as such classifications, formulas, and methods are provided for in the assessment plan. SECTION 5: THAT the Council hereby approves, adopts, and files with the City Secretary the assessment roll that is attached to this Ordinance as "Exhibit 2", with such assessment roll stating an estimate of the assessment to be levied against the property within the PID, and with the City Secretary filing the assessment roll in the official records of the City and being subject to public inspection. SECTION 6: THAT the Council finds that the assessments should be made and levied against the property within the PID and against the owners thereof, and that such assessments are in proportion to the benefits to the property by means of the services and improvements in the PID for which such assessments are levied, and further finds that in each case the property assessed is specially benefited by means of the said services and improvements of the District, and further finds that the apportionment of costs of the services and improvements is in accordance with the Act. SECTION 7: THAT there is hereby levied and assessed against the parcels of property within the PID, and against the real and true owners thereof, whether such owners be correctly named or not, the sums of money calculated by applying the assessment rate to in the manner described in the assessment plan and assessment roll. SECTION 8: THAT the several sums above mentioned and assessed against the said parcels of property and the owners thereof, and interest thereon at the rate per annum established herein, together with reasonable attorney's fees and costs of collection, if incurred, are hereby declared to be and are made a first and prior lien against the property assessed, superior to all other liens and claims except liens and claims for ad valorem taxes and is a personal liability of and charge against the owners of the property regardless of whether the owners are named; and, with such lien being attached on January 1 of each year to the property to secure the payment of all assessments, penalties, and interest ultimately imposed for the year on the property, whether or not the assessments are imposed in the year the lien attaches and shall be effective until the assessment is paid; and, with such lien being perfected on attachment requiring no further action by the Council. SECTION 9: THAT the assessments levied herein shall be due and payable in full on receipt of the assessment bill and are delinquent if not paid by January 31, 2023 except as provided in Sections 31.02(b), 31.03, and 31.04 of the Texas Property Tax Code. A delinquent assessment incurs a penalty of six percent (6%) of the amount of the assessment for the first (1 S`) calendar month it is delinquent plus one percent (1 %) for each additional month or portion of a month the assessment remains unpaid prior to July 1 of the year in which it becomes delinquent. However, an assessment delinquent on July 1 incurs a total penalty of twelve percent (12%) of the amount of the delinquent assessment without regard to the number of months the assessment has been delinquent. A delinquent assessment continues to incur the penalty provided by this Section as long as the assessment remains unpaid, regardless of whether a judgment for the delinquent assessment has been rendered. That if default be made in the payment of any of the said sums hereby assessed against said property owners and their property, collection thereof, including costs and attorney's fees, shall be enforced by the governing body in the same manner that an ad valorem tax lien against real property may be enforced by the governing body under Chapters 31, 32 and 33 of the Texas Property Tax Code. The owner of the assessed property may pay at any time the entire assessment on any lot or parcel, along with any interest and penalty that has accrued on the assessment. SECTION 10: THAT all assessments herein levied are a personal liability and charge against the real and true owners of the premises described, notwithstanding such owners may not be named, or may be incorrectly named. AND IT IS SO ORDERED. Passed by the City Council on first reading on October 26 , 2021. Passed by the City Council on second reading on November 1 , 2021. DANIEL M. POPE, MAYOR ATTEST: 0"o 7 Rebecc Garza, City Secret APPROVED AS TO CONTENT: Blrr-Gstellch, Chief Financial Officer APPROVED AS TO FORM: Wk I Kclli Leisure, Assistant City Attorney ccdocs/ORD. Economic Development Northwest Passage PID - Service Plan, Assessment Role, and Levy 10-13-21 EXHIBIT 1 City of Lubbock, TX Finance Department Northwest Passage PID FY 2022-23 Service and Assessment Plan Method of Assessment * Properties will be assessed based on the City's 2022 "net taxable value" as established by the Lubbock Central Appraisal District and submitted to the City under Tax Code Section 26.04. * Assessment rate will be $0.15/$100 valuation. * All property will be assessed based on the final 2022 "net taxable value". Service Plan Tax Year Property Values* (Taxable) Discounted Property Values Number of Homes Fiscal Year Revenues Interest Assessment @ $0.15 Total Expense Debt Service Administrative Costs Annual Operation Cost (Notices, Public Hearings, Collection Costs, Advisory Group meeting costs, postage, office supplies, Maint PT) Total Cash Reserve *Property Value growth rate = 2% annually PROJECTIONS 2021 2022 2023 2024 2025 2026 Totals 5,001,669 5,001,669 5,001,669 5,001,669 37,062,953 33,356,658 193,493,429 174,144,086 219,576,954 197,619,259 250,438,980 225,395,082 250,438,980 225,395,082 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 TotalsA - - - 7,503 50,035 457 261,216 3,383 296,429 6,750 338,093 10,590 953,275 - 7,503 50,035 261,673 299,812 344,843 963,865 4,000 5,000 4,080 5,100 4,162 5,202 4,245 5,306 470,000 4,330 5,412 470,000 20,816 26,020 - 9,000 9,180 9,364 9,551 479,742 516,836 - (1,497) 39,357 291,667 581,928 447,029 1 447,029 Assessment Information for 100,000 home $150.00 EXHIBIT 1 Service and Assessment Plan Required Attachment Sec. 5.014. NOTICE OF OBLIGATIONS RELATED TO PUBLIC IMPROVEMENT DISTRICT. (a) A person who proposes to sell or otherwise convey real property that is located in a public improvement district established under Subchapter A, Chapter 372, Local Government Code, or Chapter 382, Local Government Code, shall first give to the purchaser of the property the [a] written notice prescribed by Subsection (a-1) or (a-2), as applicable. (a-1) Except for the notice prescribed by Subsection (a-2), the notice required by Subsection (a) shall be executed by the seller and must, except as provided by Subsection (b), read as follows: NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO (insert name of municipality or county levying assessment), TEXAS CONCERNING THE FOLLOWING PROPERTY (insert property address) As the [a] purchaser of the real property described above, you are obligated to pay assessments [are assessmem] to (insert name of [a] municipality or county, as applicable), Texas, for the costs of a portion of a public [are] improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within (insert name of public improvement district) (the "District") created under (insert Subchapter A, Chapter 372, Local Government Code, or Chapter 382, Local Government Code, as applicable). AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from (insert name of municipality or county, as applicable). The exact amount of each annual installment will be approved each year by (insert name of city council or county commissioners court, as applicable) in the annual service plan update for the district. More information about the assessments, including the amounts and due dates, may be obtained from (insert name of [the] municipality or county, as applicable). Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property. The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. Date: Signature of Purchaser (a-2) For a district described by Section 372.0035, Local Government Code, the notice required by Subsection (a) shall be executed by the seller and must, except as provided by Subsection (b), read as follows: NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO (insert name of municipality levying assessment), TEXAS CONCERNING THE FOLLOWING HOTEL PROPERTY (insert property address) As the purchaser of the real property described above, you are obligated to pay assessments to (insert name of municipality), Texas, for the costs of a portion of a public improvement or services project (the "Authorized Services") undertaken for the benefit of the property within (insert name of public improvement district) (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED SERVICES, WHICH MUST BE PAID IN FULL WITH EVERY PAYMENT BY THE HOTEL OF LOCAL HOTEL OCCUPANCY TAX REMITTANCES TO THE MUNICIPALITY. YOUR FAILURE TO PAY THE ASSESSMENT MAY RESULT IN PENALTIES AND INTEREST BEING ADDED TO WHAT YOU OWE, AND MAY INCLUDE THE PURSUIT OF ANY OTHER REMEDY THAT IS AUTHORIZED UNDER SECTION 372.0035(d), LOCAL GOVERNMENT CODE. Page - 1- EXHIBIT 1 2021 Service and Assessment Plan Information about the calculation of the assessment may be obtained from (insert name of the municipality). The exact assessment rate will be approved each year by (insert name of city council) in the annual service plan update for the district. More information about the assessments, including the assessment rate and due dates, may be obtained from (insert name of municipality). The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. Date: Signature of Purchaser (b) The seller or the municipality or county that created the public improvement district may provide additional information regarding the district in the notice prescribed by Subsection (a-1) or (a-2), including whether an assessment has been levied, the amount of the assessment, and the payment schedule for assessments. (c) This section does not apply to a transfer: (1) under a court order or foreclosure sale; (2) by a trustee in bankruptcy; (3) to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest; (4) by a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court -ordered foreclosure or has acquired the land by a deed in lieu of foreclosure; (5) by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust; (6) from one co-owner to another co-owner of an undivided interest in the real property; (7) to a spouse or a person in the lineal line of consanguinity of the seller; (8) to or from a governmental entity; or (9) of only a mineral interest, leasehold interest, or security interest. (d) For the purposes of this section, a contract for the purchase and sale of real property having a performance period of less than six months is considered a sale requiring notice Page -2 - EXHIBIT 2 City of Lubbock, TX Finance Department Northwest Passage PID Projected Assessment Roll Property • Owner Name Owner Address Property Address Legal Description R63099 NWP EB-5 PROJECT LLC 1500 BROADWAY ST STE 1500 BLK JS SEC 11 AB 343 TR A AC: Acres Market 233.70 Value Taxable 1,168,500 Value Taxable 1,168,500 Value Assessment 1,168,500 $ 1,752.75 LUBBOCK,TX 79401 233.7 R66307 NWP EB-5 PROJECT LLC 1500 BROADWAY ST STE 1500 BLK A SEC 14 AB 861 TR A OF 206.14 1,030,700 1,030,700 1,030,700 1,546.05 LUBBOCK,TX 79401 S/ 2 ACS: 206.14 R82421 NWP EB-5 PROJECT LLC 1500 BROADWAY ST STE 1500 5601 URSULINE ST, BLK JS SEC 6 AB 1492 TR A & 152.61 757,939 757,939 757,939 1,136.91 LUBBOCK,TX 79401 LUBBOCK, TX 79416 A1OF NW/4 AC: 152.606 R82485 NWP EB-5 PROJECT LLC 1500 BROADWAY ST STE 1500 5201 URSULINE ST, BLK JS SEC 6 AB 1516 TR B ACS: 154.12 770,600 770,600 770,600 1,155.90 LUBBOCK,TX 79401 LUBBOCK, TX 79416 154.12 R63214 NWP EB-5 PROJECT LLC 1500 BROADWAY ST STE 1500 5521 N CR 2000 BLK JS SEC 11 AB 343 TR B 245.49 1,273,930 1,273,930 1,273,930 1,910.90 LUBBOCK,TX 79401 AC:245.49 j 992.06 5,001,669 5,001,669 5,001,669 $ 7,502.50 � FILED AND RECORDED OFFICIAL PUBLIC RECORDS * � � c�., Kelly Plnion Couniy Clerk Lubboek Coun�y TEXRS 11/02/2021 03:�5 PM FEE: g38.00 20210S669S �