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HomeMy WebLinkAboutOrdinance - 2010-O0014 - Approving The Fifth Amended North Overton District Tax Increment Finance - 02/09/2010First Reading February 9, 2010 Item No. 6.2 ORDINANCE NO. 2010-00014 Second Reading February 25, 2010 Item No. 5.9 AN ORDINANCE APPROVING THE FIFTH AMENDED NORTH OVERTON DISTRICT TAX INCREMENT FINANCE REINVESTMENT ZONE PROJECT PLAN AND FINANCE PLAN AS ADOPTED BY THE BOARD OF DIRECTORS OF THE NORTH OVERTON TAX INCREMENT FINANCING REINVESTMENT ZONE. WHEREAS, the City Council of the City of Lubbock, upon receipt of a petition requesting creation of a tax increment financing district from the owners of more than 50 per cent of the <1ppraised value of an area within the City of Lubbock bounded by the Marsha Sharp Freeway on the north, University Avenue on the west, Broadway on the south and the alley between A venue R and A venue Q on the east, adopted Ordinance No. 2002-029, March 14, 2002, establishing the North Overton District Tax Increment Finance Reinvestment Zone and defining its boundaries in accordance with the provisions of the Tax Increment Financing Act, V.T.C.A. Tax Code, Chapter 311 (the "Act''): and WHEREAS, the Board of Directors of the North Overton Tax Increment Financing Reinvestment Zone, in accordance with the Act, prepared and adopted a North Overton Area Project Plan and a North Ove1ton Area Financing Plan, which was approved June 26, 2002, by Ordinance ~o. 2002-0075; and WHEREAS, due to increased development and changed circumstances, the Board of Directors of the North Ove1ton Tax Increment Financing Reinvestment Zone adopted a First Amended Project Plan and a First Amended Finance Plan which was approved by the City Council June 12, 2003, in Ordinance 2003-00062, a Second Amended Project Plan and a Second Amended Finance Plan which was approved by the City Council November 18, 2004 in Ordinance 2004-0U 13 1, and a Third Amended Project Plan and a Third Amended Finance Plan which was approved by the City Council Janua1y 12, 2006 in Ordinance 2005-00149; a Fourth Amended Project Plan and a Fourth Amended Finance Plan which was approved by the City Council January I 0, 2007 in Ordinance 2006-00136, and WHEREAS, the Board of Directors of the North Overton Tax Increment Financing Reinvestment Zone has adopted a Fifth Amended Project Plan and a Fifth Amended Finance Plan and has submitted these plans to the City Council for approval; WHEREAS, the City Council of the City of Lubbock, after holding a public hearing in accordance with V.T.C.A. Tax Code §3 I 1.003, desires to adopt the Fifth Amended Project Plan and the Fifth Amended Finance Plan as submitted by the Board of Directors of the North Overton Tax Increment Financing Reinvestment Zone; 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: TBA T the City Council of the City of Lubbock makes the following findings regarding the Fifth Amended North Overton Tax Increment Financing Reinvestment Zone Project Plan and the Fifth Amended North Ove11on Tax Increment Financing Reinvestment Zone Finance Plan, as adopted by the Board of Directors of the North Overton Tax Increment Financing Reinvestment Zone: a) That the Fifth Amended N011h Ove1ton Tax Increment Financmg Reinvestment Zone Finance Plan includes, as required by § 3 1 1.01 1 of the Act, all of the following items: l ) a detailed list describing the estimated project costs of the zone, including administrative expenses; 2) a statement listing the kind, number, and location of all proposed public works or public improvements in the zone. 3) an economic feasibility study was included in the original project plan; 4) the estimated amount of bonded indebtedness to be incurred; 5) the time when related costs or monetary obligations are to be incurred; 6) 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 prope1ty taxes of each taxing unit that levies taxes on real property in the zone; 7 ) the CutTent total appraised \'alue of taxable real property in the zone; 8) the estimated captured appraised value of the zone during each year of its existence; and 9) the duration of the zone. b) That the Fifth Amended North Overton Tax Increment Financing Reinvestment Zone Project Plan includes, as required by§ 311.011 of the Act, al I of the following items: 1) a map showing existing uses and conditions of real property in the zone and a map showing proposed improvements to and proposed uses of that prope1ty; NO TIF Fifth Amended Project anJ Fmance Plan Ordtnancc J>agc 2 2) proposed changes of zoning ordinances, the master plan of the municipality, building codes, and other municipal ordinances; 3) a list of estimated non project costs; and 4) a statement of a method of relocating persons to be displaced as a result of implementing the plan. c) That the Fifth Amended Plan is feasible and conforms to the City of Lubbock Comprehensive Plan. SECTION 3: That the Fifth Amended No1th Overton Tax Increment Financing Reinvestment Zone Project Plan and the Fifth Amended North Overton Tax Increment Financing Reinvestment Zone Finance Plan, as adopted by the Board of Directors of the North Overton Tax Increment Financing Reinvestment Zone are approved. A copy of each plan is attached hereto and incorporated into this Ordinance as if fully set fo1th herein. SECTION 4: That if any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. AND IT IS SO ORDERED PASSED by the City Council on first reading ____ Fe_b __ r_u_a"""r ,._Y~9~t~h ___ , 2010. PASSED by the City Council on second reading Februa ry 25th , 201 0. TOM MARTIN, MAYOR ATTEST: APPROVED AS TO CONTENT: g i~~Manager Development Services APPROVED AS TO FORM: ( --·-,,,,-,-7/ ..-4 ~..:-c. ~ (_ ~ "7-.--. ~ Linda L. Chamales Economic Development Attorney NO TIF Fi ft h Amendi:-d Project and Finance Plan Ordinance Page 3 Fifth Amended Finance Plan North Overton Tax Increment Financing Reinvestment Zone Lubbock, Texas February 25, 2010 City of Lubbock, TX Ordinance No. 2010-00014 North Overton Tax Increment Financing Reinvestment Zone Fifth Amended Project Plan December 2009 North Overton TIF Project Plan The North Overton Area was established in 1907 and over the next 20 years developed as a middle-class neighborhood, with home ownership predominating. Following World War II, the growth of Texas Tech stimulated a need for student housing. This need was provided by many non-conforming apartments, converted garages, and subdivided houses, reducing home ownership considerably. Continued growth of Texas Tech encouraged development of apartment buildings, further destroying the stability of the area. By the 1980's, the City of Lubbock recognized the need to explore methods of stabilizing property values while allowing the area to develop to its fullest potential. The Overton North Study Committee was appointed to identify solutions to address the area's problems. The City retained RTKL in 1989 to prepare a Redevelopment Plan for Downtown Lubbock, which included the North Overton area. RTKL's plan identified many of the same issues as the Overton Study Committee and more particularly indicated that the City should develop creative public/private joint development opportunities and provide public improvements as incentives for development . In the late 1990's the McDougal Companies, a local developer, presented a plan to the City that would redevelop about 90% of the North Overton area. The developer petitioned the City to establish a Tax Increment Financing Reinvestment Zone (Zone) to provide the necessary public funds to finance the construction of public infrastructure. City staff, working with the developer, prepared a list of public infrastructure projects to stimulate and enhance the redevelopment of North Overton. It is expected that the planned expenditure of approximately $40.4 million for public infrastructure improvements within the Zone will result in future development/redevelopment which will increase the taxable value by approximately $3 73 .9 million over the Zone's 30-year life. As set forth in Section 311.011 of the Tax Increment Financing Act of the Tax Code, the Project Plan for the North Overton Area Tax Increment Finance Reinvestment Zone, Lubbock, Texas must and does include the following elements: 1. A map showing existing uses and conditions of real property in the Zone and a map showing proposed improvements to and proposed uses of the property. Attached as Exhibit A is a map showing existing uses of real property in the Zone and attached as Exhibit B is a map indicating locations of newly constructed or proposed public improvements in the Zone. ' City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Fifth Amended Project Plan December 2009 North Overton TIF Project Plan 2. Proposed changes of zoning ordinances, the master plan of the municipality, building codes, and other municipal ordinances. No changes have been made to the master plan of the municipality, building codes, or other ordinances. Zoning ordinances have been modified to provide architectural guidelines and special zoning considerations to provide for redevelopment of the North Overton area as a pedestrian-oriented, neo-traditional development. 3. A list of estimated non-project costs. Non-project costs within the Zone are those development costs not paid for by the Zone. These costs will include, but are not limited to, $387.3 million of new development. The detailed list of estimated non-project costs from 2004 through 2020 are included as Exhibit C. 4. A statement of a method of relocating persons to be displaced as a result of implementing the plan. In the process of developing and redeveloping the Zone, it is not contemplated there will be any involuntary relocations. However, it may be necessary to relocate individuals and businesses through voluntary buyout. In the event that this is required, the City or private developer will follow the procedures that would be used in the development or construction of other public or private improvements outside the Zone. 2 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Fifth Amended Project Plan December 2009 North Overton TIF Project Plan TIF Expense Phase I Street Reconstruction/resurfacing A/E services, reconstruction, curb and gutter, Md rotaries Rotary Amenities A/E services, landscaping, irrigation, lighting, and street furniture Glenna Goodacre Boulevard A/E services, replace curb and guttter, and right-of-way acquisition Glenna Goodacre Boulevard Amenities A/E services, landscaping, irrigation, lighting, and street furniture Landscaping in the Parkway A/E services, landscaping, irrigation, lighting, and street furniture Water and Wastewater Replacement and relocation Electric Utility -underground Pioneer Park improvements Overton Conference Center Right of Way Acquisition Phase I TIF Project Cost Total amount of debt supported by TIF Revenue Debt service interest expense Total Phase I TIF Project Cost Phase Il (TIF revenues available after debt is paid) Total TIF Project Cost Administrative Cost Total TIF Cost Bond Issuance July 15, 2003 August 15, 2005 April 15,2006 August 15, 2007 January 17, 2008 May 23, 2008 April 8, 2009 Total Bond Issuance ) $ 7,266,431 607,119 2,486,975 2,343,448 6,218,703 3,792,506 1,891,005 50,000 11,480,000 4,242,450 40,378,635 40,378,635 24,688,000 65,066,635 21,893,000 86,959,635 1,373,000 $ 88,332,635 $ 3,795,000 9,290,000 6,307,749 4,111,341 11,805,000 1,943,758 961,386 $ 38,214,234 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Fifth Amended Project Plan USIU I 1JTHST 14TH.ST C.'omnicrdal CJ lndu.~trfal -PubllcU,c C=:J P11rlill Ji Rccreatinn December 2009 Exhibit A -Existing Land Use .., ~lARSIIA SHARI' FRWY ~ . ~ ~ .~ ' . .. ' . .. . -.. '. . .. r ) f ---! .. >,. .::' :~ ··-· lOO 41" oOO RIHI WOil NORTN Ftd C=1 Re,idenfial Medium-Dcn•it> • ~ Re,ldential Low-Den•it~ ~ Tr .. n,purtatiun & UtlUtiu ~ V11c11ntL11nd ?HI "T J IOT !i" a: l,ffH /:r R.i,identi.,J Hii;b-D~mity c::::J Nunh O,erton TIF Bountl11~ !PLANNING Dl'!:PARTMENTI Exhibit A Texas Tech University City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Fifth Amended Project Plan December 2009 Exhibit B -Proposed Improvements and Proposed Uses Exhibit B City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Fifth Amended Project Plan December 2009 Exhibit C -List of Estimated Non-Project Costs Noe< Calendar Year oa uut rnl l Ntw Con,u·uc:,ton CY2004 CY 200S C\' 100li C\' 2007 CYlOllS CY 2009 CY lOJO CY 1011 C\' 1012 CYl013 CT 1014 CT 1015 CYznlj CY2017 C'o' 1018 CYl019 CT1U20 Tr1<1 l•A 0Suul>uclu/B1111i/M,louf, s 2,777.S71 1174.457) 83,:'75 Traci 1-C 1.335,375 ~.000.000 Tract 1-8-1 1,113,112 7)4,:!19 14,765 T.-..:1 I-B-l 1,336,57S 2,5]4,610 Tract t-B-l 997,864 750,000 Trsct 2.C City B•nk l,410,481 89.507 Sl,44Z TrlCt 2-A·2 C'hi6s 1,336,S~ 891.014 4J8 24,616 Trx1 l•A · Re:Maurani/R.clail 603,125 S-IJ,979 {l-17.HM) T rxt HI • The Ccmrc 22.359.soi (161,946) {695,SC,:?J Troct 3 • Retail 6,749,395 {262.¥76) 1.16016 800,000 1.2()11.000 17,685.684 Tract 4 • DmcDiem 2 25,~2.JJJ Jl8,lli'l (2.119,36SJ T nict SA • The Suites 3,078,0.16 18,945,00J T B<t SB • pouibl< ho<el 1,845,765 6,000,000 Tr.cl 6 • l"llA -Mulll-fomily 4,187,916 18,258,630 Troe1 7. Ho<,I Hl:l.495 (654,86") ~4.0J2,369 7,617,263 Troe19-Gal·T"" 1,)86,570 Tt'lc:, 8 -O.nentein J 28.036,483 (l,CM9,397) Tn1cl 10 •Main Sueet Condo 4 261,6:!2 5,SS2,Jl6 Troe, 11 • Main Sueet C....do I 5,779,320 509,704 un,6o2J Tr.oca I~ •M1un Sw:cl Ctlfldo 2 l.24],485 4,766,lil] Troe, IJ -MoinSII..,ICondoJ J48,J40 S,137,2J5 Troe, 14-A Wolmort I B,943,767 581,182 :U.2.0S! Tn,ol I S•A Murphy', Gos 1.258,793 (!, I 13) (409.2SO) Tr.Ott 16-A B.urgsr Kmg 555,855 ~6.878 Tr.iu:l I 7•A Walmnrt 37.710 11,8:,4 Tr.ot:l A · DineDtem l ::?:?,294,62] :?9,0:!::? (195,91D) Tract 18 2.l:!.2,087 8?,07S 111,454 Tra<l 19-A Chic Fil A 199,560 Tracl 19-B Rt.:tnil IS9, !SO Tract .:?O C0tnmercial 890,064 2,966,880 Tract 21 Commercl:ol I. IKl.390 Tract 2:! Commen:iol Tritt :!:J Commcrciol 3,500,000 Tnsc1 ~~ HomcJ/Duplex.6 2,J00,000 Traci Z5 C(;l{nnt.:reiDI 1,207,140 Tract 26 Homc.tDuplexc, :?,000.000 Traci 27 t-ioo~uable ertlily Univcrsiry Plu.t s.son.ooo J,S00,000 4,173,149 126,851 Coppc"'°"'1 Ap111tmen1J 865.408 44,609 8,243 Fan,ily Phu, I -Block l JJB,-'40 l,JOJ,"811 1,4975n 1,575,000 Family Phue I -Block 2 63~,307 450,000 900,000 1.12.s.CKJD 1,800.000 1.800.000 1,800,000 Family Phuc l -Blocl. J 1,SS7,I.C 1,161,676 896,0I'.! l,l94,n6 1,194,776 1.194.770 l,19'1,776 famtlyl'lmcl Block4 579,049 486,40 754,71] 1.006.184 1.006,2« 1,006,ZU l,:?57,US l.(K16,2~ Tri.cl 2.a. Capsa.one 2.925.lll 2,4'.!2.]68 l,S!'S,»1 Troct 29 • Captton.e 11,9116,SJO J,929,271 Tract 30 • CapJlone 4,112.:!,220 l.~9],407 Tract JI • Capau:mc 4,849,027 1,517,730 famil1 Pha,e Ill -Blod,. 11 1,400,000 1,400,000 l,400,000 1.400,000 1,400,000 Family Ph•>< Ill -Block 12 1,400,000 [,400,000 1,400,000 1,400,000 1,400,000 fomily Phase Ill -Bled: IJ 1.400,000 1,400,000 1.400.000 942.)88 400.000 Tocal New Construdioa 22.294.62J Jl.446.964 64,160.MS 40,171.649 :W.:?6).417 76,~.471 19.IJ-1.014 S,l8l.425 41.8?7,!161 JJ,8l7,0l6 4,SOl1060 6,377.631 7.006.284 6.000.000 6.000.000 ll42,J8ij <100.000 Cum ulalive N1w Com.lrud:iuQ S53,7411ll7 1 l 7.902.245 156.079.H94 178.343.31 I 254.4!7,792 17J,l61.806 27&1947.:!l I ]20.823.192 )S41G621J I 8 359116l.27a 165,540,909 ]72,547, 193 J781H7.19J 384,547.193 J 86,889 ,lH I 387.239.581 ExhibitC Fifth Amended Finance Plan North Overton Tax Increment Financing Reinvestment Zone Lubbock, Texas February 25, 2010 City of Lubbock, TX North Overton Tax Increment Financing Reinvestmen-. Zone Fifth Amended Finance Plan December 2009 The Financing Plan provides information on the projected impact that the North Overton Tax Increment Financing Reinvestment Zone (Zone) could have on the property illustrated in Appendix A. It also describes how that impact could be utilized to enhance the area and region through leveraging the resources of each entity that participate in the project. Below is a summary of the Financing Plan items required by law: 1. A detailed list describing the estimated project costs of the zone, including administrative costs. The total project costs over the life of the zone will be approximately $62.3 million, not including interest payments on debt service. The detailed list of projects is included in Appendix B. 2. A statement listing the kind, number, and location of all proposed public works or public improvements in the zone. • Capital costs, including the actual costs of the acquisition and construction of public works, public improvements, new buildings, structures, and fixtures; the actual costs of the acquisition, demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and fixtures; and the actual costs of the acquisition of land and equipment and the clearing and grading of land; • Financing costs, including all interest paid to holders of evidences of indebtedness or other obligations issued to pay for project costs and any premium paid over the principal amount of the obligations because of the redemption of the obligations before maturity; • Any real property assembly costs; • Professional service costs, including those incurred for architectural, planning, engineering, and legal advice and services; • Any relocation costs; • Organizational costs, including costs of conducting environmental impact studies or other studies, the cost of publicizing the creation of the Zone, and the cost of implementing the project plan for the Zone; • Interest before, during and after construction, whether or not capitalized; • The amount of any contributions made by the municipality from general revenue for the implementation of the project plan; 2 City or Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Fifth Amended Finance Plan December 2009 • Imputed administrative costs, including reasonable charges for the time spent by employees of the municipality in coMection with the implementation of a project plan; • The cost of operating the Zone and project facilities; and • Payments made at the discretion of the governing body of the municipality that the municipality finds necessary or convenient to the creation of the Zone or to the implementation of the project plans for the Zone. • All public improvements or public works projects will be in the area shown on the map in Appendix A. 3. Economic Feasibilty Study. • An economic feasibility study has been completed and is included as a part of this Financing Plan as Appendix C. 4. The estimated amount of bonded indebtedness to be incurred. • The debt capacity produced from the estimated tax increment should yield approximately $40.4 million in funding capacity. 5. The time when related costs or monetary obligations are to be incurred. • Related costs and monetary obligations have been incurred with each bond issue, beginning with the first bond issuance in FY 2005. 6. A description of the methods of financing all estimated project costs and the expected sources of revenut to f'mance or pay project costs including the percentage of tax increment to be derived from the property taxes of each taxing unit on real property in the Zone. • Project costs will be financed using certificates of obligation with the revenue source provided by tax increment funds received, hotel/motel taxes, and revenues generated by contractual agreements within the Zone. The percentage of tax increment to be derived from the property taxes of each taxing unit participating in the Zone is 100%. 3 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Fifth Amended Finance Plan December 2009 7. The current total appraised value of taxable real property in the Zone. • The appraised value of the taxable real property in the Zone that the Lubbock Central Appraisal District certified in July 2002 was $26,940,604. This amount is the base value for the district in calculating future increments. The current appraised value according to the 2009 certified TIF roll is $279,910,784. 4 City of Lubboc~ TX North Overton Tax Increment Financing Reinvestment Zone Fifth Amended Finance Plan December 2009 8. The estimated appraised value of the improvements in the Zone during each year of existence. • The estimated appraised value of the improvements in the Zone per year is listed in the following table: Estimated Tax Demolitions Year ($ thousands) 2002 $ 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 TOTAL$ (2,019) (12,395) (2,362) (16,776) New Development Assessed Value ($ thousands) 5 12,406 21,632 99,842 41,397 6,860 17,618 69,990 17,22 l 4,847 37,690 30,453 4,05 I 5,740 6,306 5,400 5,400 2,520 l,260 390,633 Total Adjusted Assessed Value ($ thousands) I0,387 9,237 97,480 41,397 6,860 17,618 69.990 17,221 4,847 37,690 30,453 4,051 5,740 6,306 5,400 5,400 2,520 1,260 373,858 City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Fifth Amended Finance Plan December 2009 9. The estimated annual incremental funds available from development and redevelopment in the Zone are listed in the following table. E.otlmatod E.llimated Annual Tax Annual An nu al Revenue Tax Adjwteil Captured Cumulative Ca1>turod lncn:mont I ntereSI Revenue Conferen,e Ctr. Year Valuc(S thowands) Value($ thowands) ($ tbowand1)• {S thousands)* (S thousands)" 2002 $ 2003 10,387 10.387 2004 9.237 19,625 96 0 2005 97.480 117,105 176 2 2006 41,397 158,501 933 468 2007 6.860 165.362 1.289 600 2008 17.618 182.980 1.455 555 2009 69.990 252.970 1,583 25 11 2010 17.221 270.191 2.216 17 66 2011 4.847 275,038 2.367 (3) 66 2012 37.690 312.728 2.409 (35) 66 2013 30.4SJ 343,181 2,739 4 131 2014 4.051 347,232 3.006 5 131 2015 S.740 352,972 3.041 6 131 2016 6.306 359,278 3.092 10 131 2017 5.400 364,678 3.147 14 131 2018 5.400 370.078 3.193 20 131 2019 2.520 372.598 3.241 27 131 2020 1.260 373.8S8 3,263 34 \3 \ 2021 373,858 3,275 42 13\ 2022 373,858 3,275 so 13 l 2023 373.858 3,275 58 131 2024 373.858 3.27S 61 131 2025 373.858 3.275 69 131 2026 373.858 3,275 91 131 2027 373.858 3.27S 124 131 2028 373.858 3.275 186 131 2029 373.8S8 3.275 252 131 2030 373,858 3.275 321 131 2031 373,858 3.275 396 131 2032 3.275 471 131 Total s 76 ~I 3871 2 825 • Revenue is shown in fiscal year lhat ii is collected. '2005 Bonds l\'ffe issued -.iih • prc.mium ofS2-IS,720. Th• par amount issued was S9,290,000, wilh bond proa«L, ofS9.Sl5,7?0. "1006 Bonds v;ccc issued wilh a pr,mlwn ofSl66,81J. The par amount issued was S6.J07.H9. with bond proceed> of$6,47-l,562. '1007 Bonds wctc i=ed \\ith • pr,mham ofS69,796. The pa, amount issued was 14,l l l.H l. nith bond proceed> ofS4,181,0SS. •'.!008 Ta.table Bonds""'" ifflJcd at• par amount of SI 1,805,000, -..ith bond proec«lsorsl 1,400,000. '.?008 Bonds wctc is"'ed .,ith • prcml11111 ofs&?,709, The par amount is.ued wos SI ,9-13.738, l\ilh bond procttd• of$2,031,-167. '2009 Bonds \\'ffC issued .,ith a premium ofS27,S97, The par amount issued wos $961,386, "ilh bond procttds of$988,983. Annual Hotel Motel Total Tax ~venue, Revenues iS thousands)* (S lhowands)* 96 178 1.402 1,889 2.010 81 1.700 323 2.621 . 323 2.751 . 323 2.762 • 323 3.196 323 3.464 323 3.S01 323 3,555 ° 323 3,614 ' 323 3,666 . 323 3,722 ' 323 3.751 ' 323 3.770 323 3.778 323 3.786 309 3.776 3,474 3,496 D 3,530 . 3.591 ' 3.657 3.727 3.801 -3.876 005 88,140 bBased on projected tax rates of: City-$0.4464; County-$0.319458; Hospital-$0,11084; and Water Disrict- $0.00794. Calculation: Incremental value I 100 X tax rate X collection rate. 10. The duration of the zone: The duration of the zone is 30 years. 6 City or Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Fifth Amended Finance Plan December 2009 Appendix A Appendix A City of Lubbock, TX North Overton Tax Increment Financing Reinvestment Zone Fifth Amended Finance Plan December 2009 Appendix B -North Overton TIF Project Costs TIF Expense Phase I Street Reconstruction/resurfacing $ NE services, reconstruction, cW'b and gutter, and rotaries Rotary Amenities A/E services, landscaping, irrigation, lighting, and street furniture Glenna Goodacre Boulevard A/E services, replace cwb and guttter, and right-of-way acquisition Glenna Goodacre Boulevard Amenities A/E services, landscaping, irrigation, lighting, and street furniture Landscaping in the Parkway A/E services, landscaping, irrigation, lighting, and street furniture Water and Wastewater Replacement and relocation Electric Utility-underground Pioneer Park improvements Overton Conference Center Right of Way Acquisition Phase l TIF Project Cost Total amount of debt supported by TIF Revenue Debt service interest expense Total Phase [ TIF Project Cost Phase II (TIF revenues available after debt is paid) Total TlF Project Cost Administrative Cost Total TIF Cost $ Bond Issuance July 15, 2003 $ August 15, 2005 April 15, 2006 August 15, 2007 January 17, 2008 May 23, 2008 April 8, 2009 Total Bond Issuance $ Appendix B 7,266,431 607,119 2,486,975 2,343,448 6,218,703 3,792,506 1,891,005 50,000 11,480,000 4,242,450 40,378,635 40,378,635 24,688,000 65,066,635 21,893,000 86,959,635 1,373,000 88,332,635 3,795,000 9,290,000 6,307,749 4,111,341 11,805,000 1,943,758 961,386 38,214,234 Appendix C Ordinance No. 2010-00014 TAX INCREMENT FEASIBILITY ANALYSIS North Overton Area Tax Increment Financing Reinvestment Zone LUBBOCK, TEXAS Prepared for City of Lubbock JUNE2002 SCHRADER & CLINE, LLC t800 Broadtvay, Suite A Lubbock, Texas Appendix C Index Forward Section I: Section II: Section III: Section IV: Section V: Appendix C History Current Situation Future Plans Tax Increment Analysis Tables INDEX Table 1: North Overton Project Plan Table 2: Private Development Projects Table 3: Annual Captured Value Table 4: Annual Incremental FWlds Available Table 5: Annual Incremental Funds Contributed Table 6: Income Without TIF Table 7: BPP Inventory Estimate, $ K Table 8: Income With TIF Appendix C PAGE 2 3 4 8 9 11 13 13 14 15 16 17 18 19 20 AppendixC FOREWORD Schrader & Cline, LLC was asked to prepare a Feasibility Analysis using tax increment financing to encourage redevelopment of the North Overton Area Tax Increment Financing Reinvestment Zone in the City of Lubbock, Texas. This area of the City needs public infrastructure projects that will provide a stimulus for redevelopment and enhancement of the area. Section I summarizes the history of the North Overton area. Section II reviews the current situation. Section III details future plans, and Section IV details the tax increment analysis Section V shows tables The following projections of development and tax revenues are subject to change. As underlying conditions in the national and regional economy change, the pace and value of new development and redevelopment projected for the TIF area may shift. Future property tax rates are particularly difficult to predict given their dependence on changes in the tax base, the mix of taxes levied and the various jurisdictions' overall fiscal and budgetary policies. Thus, the projected tax increments are subject to change. The analysis of future tax increment funds is dependent on a series of projections, assumptions, and other inputs; the report should be reviewed in totality. Neither this report nor its conclusions may be referred to or included in any prospectus or part of any offering made in connection with private syndication of equity, sale of bonds, sale of securities or sale of participation interests to the public without express written approval. Schrader & Cline, LLC Addison, Texas June2002 AppendixC AppendixC I Section I: HISTORY The North Overton area of the City of Lubbock was established in 1907 on a tract of land just west of the existing "town site". It thus became the first major real estate operation in town. Lots being offered by Dr. M. C. Overton sold at a steady pace, but a good portion of the land was sold in large tracts. The first houses were built in 1907, and Broadway, the main street of the addtion, became a fashionable street on which many prominent Lubbock residents built homes. By the 1920's, the Overton Addition became an integrated part of Lubbock through paving projects and the annexation of all its land to the City. This development was enhanced by the establishment of Texas Technological College along the western boundary of the neighborhood in 1925. As a result, part of Overton developed as a neighborhood serving the new student population; boarding houses dotted the area and a variety of businesses catering to the college trade developed along College Avenue. The neighborhood by the late 1920's and early 1930's was generally middle class, with home ownership predominating. To this day, many of the North Overton homes still standing were built in the 20-year period before 1940. Many of these were FHA homes. The post-war attendance boom at Texas Tech created a shortage of student housing. Although non-conforming apartments were not legal under the city zoning ordinances, there was a tacit agreement between homeowners and the City that allowed the conversion and leasing of apartments without permits or conformity to city building codes. This decision created many of the substandard units that plague the North Overton neighborhood today. Rental property became an important part of the Overton scene as an increasing number of owners moved to south and southwest Lubbock. Owners converted garages into apartments, subdivided houses, and the population of the neighborhood began to rise. By 1960, the increasing enrollment at Texas Tech encouraged a rash of apartment buildings. This influx of rental housing eliminated much single-family housing, caused traffic congestion, Appendix C Appendix C and introduced a transient population that destroyed the stability of the area. Speculation became an important part of the real estate market in North Overton, where whole blocks of houses were bought up in anticipation of massive profits from apartment complexes. In addition, spot zoning began to destroy the stability of the neighborhood as the threat of encroaching high-density apartments frightened older residents into selling out. By the 1980's, the Lubbock City Council recognized that the passage of time, market trends, and land use changes had created severe pressures on North Overton, and felt there was an urgent need to analyze the problems and potential of the area. As a result, the council appointed the Overton North Study Committee on November 11, 1982. The Committee established as its mission: "To explore methods of stabilizing property values in North Overton while allowing the area to develop to its fullest potential, with a focus on improving living conditions and the quality of life." In general, the Committee noted that: o North Overton has changed from a fairly stable single-family residential neighborhood to a high-density, renter-occupied, deteriorating area; o Out of town ownership and/or management of housing has increased, further diluting the pride of ownership in the area; o Generally vacancy rates have increased; o Apartment complexes------most built before the 1975 zoning ordinance placed new parking and landscaping requirements on apartments-are scattered across the neighborhood, often isolating single-family residences and increasing congestion; o Weeds, abandoned vehicles, and trash, especially on vacant lots and in alleys are common in North Overton; o Whether due to rental occupancy of single-family housing or increasing apartment development, the decrease in ownership leads to a lack of pride in the neighborhood; and o Crime statistics in the North Overton neighborhood are high. Appendix C Appendix C After examining the various trends in North Overton, the Study Committee formulated strategies to address the area's problems and potential. The strategies would: o Allow street closures to pool land for large development projects, or to promote pedestrian access to redevelopment areas; o Encourage development of pedestrian oriented services for North Overton residents; o Promote North Overton as a place for Tech students to live; o Consider alternative financing programs for revitalization projects-possibilities: Tax Increment Financing. Tax Abatement, Urban Development Action Grants, Industrial Revenue Bonds; o Encourage well-planned housing development, particularly that utilizing large tracts ofland; o Encourage emphasis on home ownership; and o Encourage lending policies to facilitate home ownership. Unfortunately, the admirable goals of the Overton North Study Committee have not been implemented for a variety of reasons. First, there was a severe downturn in the real estate market during the mid-to-late 1980's. Second, no developer stepped forward with a plan to consolidate the myriad of small residential lots into developable tracts. Third, there were limited public/private partnership opportunities. In March 1989, RTKL, a land use planning finn retained by the City of Lubbock, issued a Redevelopment Plan for Downtown Lubbock that included the North Overton area. The RTKL report identified many of the same issues as the 1982 Study Committee. Some of RTK.L's comments about the North Overton area were: o North Overton is one of those duplex and multi-family areas going through a churning process that produced urban blight. It is becoming a high-crime area desperately in need of stabilizing redevelopment. AppendixC Appendix C o A university the size of Tech typically generates the development of a "campus town", or a significant number of college-oriented retail businesses located within walking distance of the campus. However, a campus town is missing in Lubbock; retailers that used to be located across from the Tech campus have since moved to outlying areas. o Where North Overton once supplied many of the residential units for Texas Tech students, many of those students have since moved to newer complexes in suburban Lubbock. o North Overton 1s expenencmg a critical level of deterioration. One of the contributing factors appears to be the extent to which "spot zoning" of apartment complexes was allowed in a single-family neighborhood. o Once apartments were developed, single-family homes were purchased as rental units by absentee landlords; o With no new multi-family housing starts, and the continued aging of existing garden apartments, there could be a need for student housing in the North Overton area in the next few years; and o Redevelopment of the North Overton area will depend on enough land assembly for a critical mass of housing to provide an incentive for residential builders to start a range of housing programs over several years of continual development. The City should establish new zoning standards that pennit a wide range of housing types within North Overton. o The community must recognize the importance of private investment and the needs of the development industry. The City must develop creative publidprivate ioint developme11t opportunities-and provide public improveme11ts as i11centives for development. Through the 1990's, the situation in North Overton continued to stagnate. Appendix C Appendix C j Section II: CURRENT SITUATION At this time, the North Overton neighborhood continues to be an area in distress. o Population is declining, vacancies are high (32.6% compared to 7.8% for City); o Owners occupy only 7.3 % of the properties compared to 51.5% in the City; o Crime is high; and o Many properties are in poor condition, abandoned vehicles and weeds are prevalent, and there is little to attract anyone to this neighborhood other than extremely low values and rents. However, in spite of this (or possibly because of all this) a local developer has come forward with the express purpose of purchasing and redeveloping about 90% of the North Overton area. Currently the developer owns approximately 80% of the property he intends to develop. The developer has submitted a petition to the City of Lubbock requesting that the City establish a Tax Increment Finance (TIF) Reinvestment Zone to provide the necessary public funds for entering into a public/private partnership. This public/private partnership will provide for a significantly enhanced redevelopment of the North Overton area by using public funds for upgraded intersections, additional landscaping, improved street lighting, park improvements, and street and utility replacement/reconstruction. In order to ensure this higher quality redevelopment project, the City has retained J. D. Wilson and Associates to provide design concepts for a pedestrian oriented district and the City also has prepared redevelopment guidelines and TIF participation guidelines. The redevelopment being proposed through use of this public/private partnership follows many of the strategies noted in the 1982 Overton North Steering Committee report and the 1989 Redevelopment Plan for Downtown Lubbock prepared by R TKL. Plans call for street closures to allow for larger development projects, student housing will be provided, there will be a variety of well-planned housing projects, retail to support the neighborhood and the Tech student population; and the entire development will be pedestrian oriented. Enhancing and upgrading this private redevelopment will be pubic projects financed by TIF funds. Appendill C Appendix C I Section III: FUTURE PLANS As part of the public/private partnership which will be used to stimulate, enhance and support redevelopment of the North Overton area, a list of public infrastructure projects has been developed by City staff as shown in Table 1. These infrastructure projects are designed to replace 70-year old utilities, provide new street lighting and signalization, upgrade Pioneer Park, and provide for enhanced landscaping, wider sidewalks, and street furniture. Funding for these public projects will be financed by TIF funds generated by private redevelopment projects. Private development projects planned for the North Overton area as part of a public/private partnership and shown in Table 2, include the following: TYPE Residential SQ. Ff. 112,000 277,000 Multi-Family Single-Family/Garden/Town Homes UNITS 928 333 Retail development in North Overton will be supported by both Tech students and the neighborhood residents. Based on estimated student buying power of $125 per month per student, Tech students alone could support between 150,000 and 187,000 square feet of retail development assuming $200 to $250 worth of annual sales per square foot. In addition to Tech students, the surrounding neighborhood will utilize the retail development and the retail support area will be further expanded with the completion of Marsha Sharp Freeway frontage roads expected in 2008. No new office space has been built in the Overton area or even in the nearby Central Business District for several years. The small 112,000 square foot office building being planned for the North Overton area should fill up rapidly, most likely with tenants from older office buildings near by. AppendixC AppendixC Prior to the redevelopment planned by this proposed public/private partnership, there were about 3,200 residential units in the North Overton area. However, only about 2,200 were occupied- by approximately 5,000 residents. With this redevelopment, there are only 1,261 units planned, about 75% of which are multi-family, with the remainder a mix of single-family, town house, and garden houses. This is a much lower density than the development which previously existed, and we have no doubt this reduced number of units will be absorbed quickly. In addition, about 25% of the multi-family units are being planned for Tech students. If this development for students is successful (and it should be), the number of multi-family units for students may be increased to 50%. It is anticipated that build-out of this public/private partnership will occur over a seven year period and will provide an increase in real property value of approximately $171 million. This increase will be offset however, by a loss in value from demolition of existing improvements of approximately $17 million. All of this results in a net real property value increase of overt $154 million. Detail of this forecast is shown in Table 3. In addition to the increase in real property values, it is also anticipated that business personal property and inventory values will be increased by about $8 million as shown in Table 7. Appendix C Appendix C [ Section IV: TAX INCREMENT ANALYSIS This section documents the detailed analysis and inputs used to generate the tax increment revenue estimates. Tax increment financing involves: • Designating an eligible redevelopment area as a tax increment reinvestment zone; • Soliciting participation of the taxing jurisdictions; • Setting the assessment base at the level of the most recent assessment; and • Diverting tax revenues generated by the increase in assessed value to a tax increment fund for funding public improvements. Thus, future tax increment revenues depend on four elements: • The timing and value of new development and redevelopment; • Appreciation of existing land and improvements; • The value of any existing improvements demolished to make way for new development; and • Future tax rates and the percentage of participation of each taxing jurisdiction. This analysis will include only tax increment above the base from redevelopment in the Zone. We have not included any tax increment from increases in value of existing development. Table 2 indicates the projected assessed value and timing of the redevelopment planned for the North Overton area within the Zone. Assessment policies in Lubbock County set building assessments at 100% of fair market value, roughly equal to construction costs for new construction. Assessed values are established as of January 1 of the tax year. Thus, new development in 2002 goes on the tax rolls for the Tax Year 2003. Taxes generated against values in one tax year are due and collected at the beginning of the following tax year. Thus, for this analysis, tax increment is available beginning in tax year 2004. Table 3 uses the New Development values shown in Table 2 and deducts the loss of value as a result of demolition of existing improvements to generate an Adjusted Captured Value. Table 4 used the Adjusted Captured Value as shown in Table 3, and tax rates for each of the Appendix C Appendix C taxing jurisdictions, to develop the Annual Tax Increment. Table 5 takes the same Annual Tax Increment and shows the increment provided by each taxing jurisdiction. During the proposed 30-year life to the North Overton Area TIF Reinvestment Zone, the tax increment fund would collect a total of $35,893,000. This tax increment will provide sufficient funds to pay for all the public infrastructure projects listed in Table 1, even if the TIF Board and City elect to finance these projects by issuing bonds. Finally, Table 6 projects the tax income to all taxing jurisdictions without the North Overton Area TIF Reinvestment Zone. This table indicates that all participating taxing jurisdictions are projected to receive a combined total of $8,217,471 during the 30-year life of the TIF. Table 8 projects the tax income to all taking jurisdictions with the North Overton Area TIF Reinvestment Zone which includes tax income from Business Personal Property and Inventory as shown in Table 7. In this case, all participating taxing jurisdictions are projected to receive a combined total of$8,878,000 during the 30-year life of the TIF. As indicated by these tables, the income to all taxing jurisdictions during the life of the Zone is more with the Zone than it is without, even though the jurisdictions are also providing a combined $35,893,000 to the TIF FW1d to pay for the proposed public infrastructure projects. Appendix C Appendix C Section V: TABLES Table 1 I NORTH OVERTON PROJECT PLAN Cost,$ Cost,$ PROJECT BOND ISSUE 1 BOND ISSUE 2-S TOTAL 2001 1003-1006 TIFCOSTI i PHASE I-First 6 Years Marsha Sharp Frwy Frontage 0 1,000,000 1,000,000 0 Improve 8 lntersi:ctions + Frontage 0 Landscaping & street lighting Universicy Avenue Boulevard 0 900,000 900.000 0 Signalize 3 Intersections 0 I.Jinds.cape Median 0 Replace Street Lighting Pioneer Park Improvements 0 500,000 500,000 Eighlh Street Boulevard 0 Reconstruction 130,000 560,000 690,000 0 Landscaping 0 490,000 490,000 0 Street lighting Main Street Reconstruction 0 Reconstruction 240,000 580,000 820,000 0 Remove/palletize Brick 0 780,000 780,000 0 Replace curb & gutter 0 0 l.andsc aping 0 Street lighting Stonn Sewer 0 118,000 118,000 Landscaping, Sidewalks, Street Furniture, etc. I 50,000 830,000 980,000 Street lighting 50,000 450,000 500,000 Commons, Land Acquisition 420,000 420,000 Commons, Development 250,000 250,000 Street Ra:onstruction/Resurfacing 0 Remove/replace curt> & gutter 80,000 1,100,000 1,180,000 0 Biruminous Paving on remaining Streets 130,000 1,800,000 1,930,000 Alley Paving 0 0 0 Water Line Replacement 80,000 2,500,000 2,580,000 Wastewater Line Replacement 40,000 1,500,000 1,540,000 TOTAL BOND ISSUES (1-5) 900,000 13,778,000 14,678,000 Administration 90,000 150,000 240,000 TOTAL PHASE I TIF COST 990,000 13,918,000 14,918,000 PHASE II-Years 7-30 Public lnfiastructun: 0 7,000,000 7,000,000 TOTAL TIF COST 990,000 10,928,000 11,918,000 Appendix C Appendix C Table 2 I PRIVATE DEVELOPMENT PROJECTS Land Use COMMERCIAL Acreage Bldg/ Sq Ft S/SqFt 2003 Retail Center 17.71 270,025 106 L~ebold Improvements 216.000 65 Bank 0.43 7,559 218 Lllnd Value Inc. 13 Office 5.17 112.502 76 Land Value Inc. 10 MULTI-FAMILY Units $ I Unit Site A 912 166 54.701 Land Value Inc. 3.25 SitcB 13.36 240 54.602 12,981,860 umd Value Inc. 3.25 l.890,727 SiteC 15.63 281 54,649 Land Value Inc. 3.25 SitcD 13.36 240 54,602 L.iod Value Inc. 3.25 OTHER Units $ I Unit Single Family 61.23 195 180,000 Garden Homes 6.14 102 165.000 Town Homes 5.79 36 165,000 TOTAL 14,872,587 2004 1,643,981 245,983 13,381,850 1,890,727 8,775,000 4,207,500 I.485,000 31,63ft,041 New Development Values,$ 2005 28,661.220 8,981,872 IJ06,053 15,201.792 2,212,184 8,775,000 4,207.500 1,485,000 70.830,621 2006 2007 2008 4,680,000 4,680,000 4,680,000 4.275,092 4,275,092 1.126,026 1,126.026 8,775,000 8,775,000 4,207,500 4,207,500 1,485,000 1,485,000 24,548,618 l4,!i48,6111 4~0.000 AppcndixC North Overton TIF Fifth Amended Financing Plan City of Lubbock Appendix C Table 3 ANNUAL CAPTURED VALUE YEAR DEMOLITIONS I. K NEW DEVELOPMENT LK 2002 . . 2003 (3,703) 14,873 2004 (4,003) 31,630 2005 (5,883) 70,831 2006 (1,588) 24,549 2007 (1,599) 24,549 2008 -4,680 2009 -- 2010 -- 2011 -- 2012 -- 2013 -- 2014 -- 2015 -- 2016 -- 2017 -- 2018 -- 2019 -- 2020 -- 2021 -- 2022 -- 2023 -- 2024 -- 2025 -- 2026 -- 2027 -- 2028 -- 2029 -- 2030 -- 2031 -- 2032 -- TOTAL (161765l 1711112 ADJUSTED CAPTURED VALUE I. K . 11,170 27,627 64,948 22,961 22,961 4,680 - - - - - - - - - - - - - - - - - - - - - - - - 1541347 Appendix. C North Ovc:11on TIF Fifth Amended Financing Plan City of Lubbock Appendix C Table 4 I ANNUAL INCREMENTAL FUNDS AVAILABLE 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 TOTAL ADJUSTED CAPTURED VALUE, $K 11,170 27,627 64,948 22,961 22,961 4,680 * Based 011100'>6 par1icipatio11 and tax rates of: CUMULATIVE CAPTURED VALUE.SK 11,170 38,797 103,745 126,706 149,667 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 154,347 ANNUAL TAX INCREMENT. SK * 97 337 900 1,100 1,299 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 1,340 35,893 Ciry--$ 0. 57000; Coul/ly-SO.I 9170; Hosp/tal-S0,09 798; Wattr Distric,._$0.00830 Appendix C North Overton TIF Fifth Amended Financing Plan City of Lubbock Table 5 YEAR 2002 2003 2004 2005 2006 2007 2008 2009 2010 201 l 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 TOTAL Appendix C IANNUALINCREMENTALFUNDSCONTRIBUTED CITY 63 221 591 722 853 880 880 880 880 880 880 880 880 880 880 880 880 880 880 880 880 880 880 880 880 880 880 880 880 23,570 ANNUAL TAX INCREMENT$ K COUNTY 21 75 198 243 287 296 296 296 296 296 296 296 296 296 296 296 296 296 296 296 296 296 296 296 296 296 296 296 296 7,928 (By Taxing Jurisdiction) HOSPITAL 11 38 102 124 147 152 152 152 152 152 152 152 152 152 152 152 152 152 152 152 152 152 152 152 152 152 152 152 152 4,070 WATER DISTRICT TOTAL 2 97 3 337 9 900 11 1,100 12 1,299 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1,340 12 1.340 12 1,340 325 351893 Appendix C North Overton TIF Fifth Amended Financing Plan City of Lubbock Appendix C Table 6 I INCOME WITHOUT TIF REAL BUSINESS Income to Jurisdiction Without TIF **, $ PfJ.OPERrf. PP!! /NJ/ TOTAL WATER YEAR VALUE, I_K Vi!J(.~t". ,iK VAl,.UE~K CITY COUNTY HOSPITA!,_ Dl~TRICT 2002 24,419 • 2,580 * 26,999 ---- 2003 24,419 2,580 26,999 153,984 51,757 26,454 2,241 2004 24,419 2,580 26,999 153,894 51,757 26,454 2,241 2005 24,419 2,580 26,999 153,894 51,757 26,454 2,241 2006 24,663 2,606 27,269 153,894 51,757 26,454 2,241 2007 24,910 2,632 27,542 155,433 52,275 26,718 2,263 2008 25,159 2,658 27,817 156,987 52,798 26,986 2,286 2009 25,662 2,711 28,373 158,551 53,325 27,255 2,309 2010 26,175 2,765 28,940 161,726 54,391 27,800 2,355 2011 26,699 2,821 29,520 164,958 55,478 28,355 2,402 2012 27,233 2,877 30,110 168,264 56,590 28,924 2,450 2013 27,778 2,935 30,713 171,627 57,721 29,502 2,499 2014 28,056 2,964 31,020 175,064 58,877 30,093 2,549 2015 28,336 2,994 31,330 176,814 59,465 30,393 2,575 2016 28,620 3,024 31,644 178,581 60,060 30,697 2,600 2017 28,906 3,054 31,960 180,371 60,662 J 1,005 2,626 2018 29,195 3,085 32,280 182,172 61,267 31,314 2,653 2019 29,487 3,116 32,603 183,996 61,881 31,628 2,679 2020 29,782 3,147 32,929 185,837 62,500 31,944 2,706 2021 30,080 3,178 33,258 187,695 63,125 32,264 2,733 2022 30,381 3,210 33,591 189,571 63,756 32,586 2,760 2023 30,685 3,242 33,927 191,469 64,394 32,912 2,788 2024 30,991 3,274 34,265 193,384 65,038 33,242 2,816 2025 31,301 3,307 34,608 195,311 65,686 33,573 2,844 2026 31,614 3,340 34,954 197,266 66,344 33,909 2,872 2027 31,931 3,374 35,305 199,238 67,007 34,248 2,901 2028 32,250 3,407 35,657 201,239 67,680 34,592 2,930 2029 32,572 3,441 36,013 203,245 68,354 34,937 2,960 2030 32,898 3,476 36,374 205,274 69,037 35,286 2,989 2031 33,227 3,510 36,737 207,332 69,729 35,639 3,019 2032 ---209,401 70,425 35,995 3,049 TOTAL 51396.388 1.8141893 927,613 78,577 * Esti1nated Fut11re Growt/1: 2001-1005 0% Ytar 1006-1008 1% Ytar 1009---2013 1% Year (After Marshll Shllrp FrtePt1ay fro11tage road eompletion) 1014-2011 1'¼ Year **Baud on tax rates of: City-S 0.57000; Cou1rty-J0,I9170; Hmspital-S0.09798; Water District-S0.00830. Appendix C Nonh Overton TIF Fifih Amended Financing Plan City of Lubbock Appendix C Table 7 I BPP & INVENTORY ESTIMATE, $ K YEAR OFFICE RETAIL MULTI-FAMILY TOTAL INV BPP 2002 ---- - 2003 -- - 20 20 2004 ---35 35 2005 -3,375 675 65 4,)15 2006 -6,750 1,350 60 8,160 2007 394 6,750 1,080 55 8,279 2008 1,182 6,750 864 50 8,846 2009 1,575 6,750 691 45 9,061 2010 1,260 6,750 553 40 8,603 2011 1,008 6,750 553 35 8,346 2012 806 6,750 553 JO 8,139 2013 645 6,750 553 JO 7,978 2014 516 6,750 553 JO 7,849 2015 516 6,750 553 30 7,849 2016 516 6,750 553 30 7,849 2017 516 6,750 553 30 7,849 2018 516 6,750 553 30 7,849 2019 516 6,750 553 30 7,849 2020 516 6,750 553 30 7,849 2021 516 6,750 553 30 7,849 2022 516 6,750 553 30 7,849 2023 516 6,750 553 30 7,849 2024 516 6,750 553 30 7,849 2025 516 6,750 553 30 7,849 2026 516 6,750 553 30 7,849 2027 516 6,750 553 30 7,849 2028 516 6,750 553 30 7,849 2029 516 6,750 553 30 7,849 2030 516 6,750 553 30 7,849 2031 516 6,750 553 30 7,849 Assumptions: Office: One-fourth space occupied in 2007, an additional one-half occupied in 2008, final one-fourth occupied in 2009. BPP in office space valued at $14/sq. ft. Fallowing full occupancy value, BPP depreciated at 20% per year for 5 years. Assume turnover to new tenants will keep BPP values at that level for remainder ofTIF life. Retail: Assume one-half occupied in 2005, fully occupied in 2006. Inventory valued at $25/sq. ft., BPP valued at $5/sq. ft. Inventory values remain constant over the TIF life. BPP depreciated at 20% per year for 4 years. Assume turnover to new tenants will keep BPP values at that level for remainder ofTIF life. Multi-Family; Assume four developments with BPP values of $20,000 each. One occupied in 2003 one in 2004, and two in 2005. BPP depreciated at $5,000/year until 2012, then will remain constant as furniture and equipment are replaced with new. Appendix C North Overton TIF Fifth Amended Fin:incing Pl:in City ofwbbock Appendix C Table 8 I INCOME WITH TIF BAgR&dl. ADDED Income to Jurisdiction With TIF **.,$ IJ.f.f. It,. I fi.V BPP&JNV CUM.VAL!!.~ WATER YEAR VAl,UE, S.K VdLUE, ,iK u Qll COUNTf. HOSPITAL DISTRICT 2002 26,999 -26,999 ---- 2003 26,999 20 27,019 153,894 51,757 26,454 2,241 2004 26,999 35 27,034 154,008 51,795 26,473 2,243 2005 26,999 4,115 31,114 154,094 51,824 26,488 2,244 2006 26,999 8,160 35,159 177,350 59,646 30,485 2,582 2007 26,999 8,279 35,278 200,406 67,400 34,449 2,918 2008 26,999 8,846 35,845 201,085 67,628 34,565 2,928 2009 26,999 9,061 36,060 204,317 68,715 35,121 2,975 2010 26,999 8,603 35,602 205,542 69,127 35,332 2,993 2011 26,999 8,346 35,345 202.931 68,249 34,883 2,955 2012 26,999 8,139 35,138 201,467 67,756 34,631 2,934 2013 26,999 7,978 34,977 200,287 67,360 34,428 2,916 2014 26,999 7,849 34,848 199,369 67,050 34,270 2,903 2015 26,999 7,849 34,848 198,634 66,804 34,1 44 2,892 2016 26,999 7,849 34,848 198,634 66,804 34,144 2,892 2017 26.999 7,849 34,848 198,634 66,804 34,144 2,892 2018 26,999 7,849 34,848 198,634 66,804 34,144 2,892 2019 26,999 7,849 34,848 198,634 66,804 34144 2,892 2020 26,999 7,849 34,848 198,634 66,804 34,144 2,892 2021 26,999 7,849 34,848 198,634 66,804 34.144 2,892 2022 26,999 7,849 34,848 198,634 66,804 34,144 2,892 2023 26,999 7,849 34,848 198,634 66,804 34,144 2,892 2024 26,999 7,849 34,848 198,634 66,804 34144 2,892 2025 26,999 7,849 34,848 198,634 66,804 34,144 2,892 2026 26.999 7,849 34,848 198,634 66,804 34,144 2,892 2027 26.999 7,849 34,848 198,634 66,804 34,144 2,892 2028 26,999 7,849 34,848 198,634 66,804 34,144 2,892 2029 26,999 7,849 34,848 198,634 66,804 34144 2,892 2030 26,999 7,849 34,848 198,634 66,804 34,144 2,892 2031 26,999 7,849 34,848 198,634 66,804 34,144 2,892 2032 ---198,634 66,804 34,144 2,892 TOTAL 5,830,162 1.2.6.0.779 1,002,171 84.888 **Based on tax rates of: Ciry-$ 0.57000; Cu1111zy--S0.19170,· Hospital-J0.09798; Water District-S0.00810. Appendix C North Ove11on TIF Fifth Amended Financing Plan City of Lubbock