HomeMy WebLinkAboutOrdinance - 2006-O0137 - Approving 2Nd Amended Central Business District Tax Increment Finance Reinvestmt - 12/19/2006First Reading
December 19, 2006
Item llo. 6.5
Second Reading
January 12. 2007
Itea llo. 5.4
ORDINANCE NO. zoo6-o0137
AN ORDINANCE APPROVING THE SECOND AMENDED CENTRAL
BUSINESS DISTRICT TAX INCREMENT FINANCE REINVESTMENT
ZONE PROJECT PLAN AND F1NANCE PLAN AS ADOPTED BY THE
BOARD OF DIRECTORS OF THE CENTRAL BUSINESS DISTRICT TAX
INCREMENT FINANCING REINVESTMENT ZONE.
WHEREAS, the City Council of the City of Lubbock, desiring to promote the
development of the Central Business District of the City of Lubbock, adopted
Ordinance No. 2001-0091, December 3, 2001, establishing the Central Business
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 Central Business District Tax
Increment Financing Reinvestment Zone, in accordance with the Act, prepared and
adopted a Central Business District Project Plan and a Central Business District
Financing Plan, approved December 19, 2002, in Ordinance 2002~00135, and a First
Amended Project Plan and Financing Plan approved November 4, 2004, in Ordinance
2004-00132; and
WHEREAS, due to increased development and changed circumstances, the
Board of Directors of the Central Business Tax Increment Financing Reinvestment
Zone has adopted a Second Amended Project Plan and a Second Amended Finance
Plan and has submitted these plans to the City Council for approval; 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.
CBD TIF Second Amended Plan Approval Ordinance
Page I
SECTION 2: THAT the City Council of the City of Lubbock makes the
following findings regarding the Central Business District Tax Increment Financing
Reinvestment Zone Project Plan and the Central Business District Tax Increment
Financing Reinvestment Zone Finance Plan, as adopted by the Board of Directors of
the Central Business District Tax Increment Financing Reinvestment Zone:
a) That the Central Business District Tax Increment Financing Reinvestment Zone
Second Amended Finance Plan includes, as required by § 311.0 I 1 of the Act, all
of the following items:
I) 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;
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 property taxes of each
taxing unit that levies taxes on real property in the zone;
7) the current total appraised value 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.
CBD TIF Second Amended Plan Approval Ordinance
Page2
b) That the Central Business District Tax Increment Financing Reinvestment Zone
Second Amended Project Plan includes, as required by § 311.011 of the Act, all 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
property;
2) proposed changes of zonmg ordinances, the master plan of the
municipality, building codes, and other municipal ordinances;
3) a list of estimated nonproject costs; and
4) a statement of a method of relocating persons to be displaced as a result of
implementing the plan.
c) That the Second Amended Plan is feasible and confonns to the City of Lubbock
Comprehensive Plan.
SECTION 3: That the Central Business District Tax Increment Financing
Reinvestment Zone Second Amended Project Plan and the Central Business District
Tax Increment Financing Reinvestment Zone Second Amended Finance Plan, as
adopted by the Board of Directors of the Central Business District Tax Increment
Financing Reinvestment Zone are approved. A copy of each plan is attached hereto
and incorporated into this Ordinance as if fully set forth 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.
CBD TIF Second Amended Plan Approval Ordinance
Page 3
AND IT IS SO ORDERED
PASSED by the City Council on first reading this 19th day of December, 2006.
PASS ED by the City Council on second reading this 12th day of January , 2007.
-;D ~~~-~/ DAVID~~ MAYOR
APPROVED AS TO CONTENT:
APPROVED AS TO FORM:
c ~-<-~~A{~~---~------------------------Linda L. Chamales
Senior Attorney, Office Practice
LC:/Cityatt/Linda/TIF.CBD· SECOND AMENDED PLAN ADOPTION ORD
October 27,2006
CBD TIF Second Amended Plan Approval Ordinance
Page4
Financing Plan
(Second Amended)
Central Business District
Tax Increment Financing Reinvestment Zone
LUBBOCK, TEXAS
Prepared for
City of Lubbock
November 2006
Financing Plan
I FINANCJNG PLAN
The Financing Plan provides information on the projected impact that the Central
Business District Tax Increment Financing Reinvestment Zone (Zone) could have on the
property described in Appendix A. It will also describe 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 estimate project costs of the zone, including
administrative.
The total project costs over the life of the zone will be approximately $10.4
million. 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;
CBD Second Amended Finance Plan
City of Lubbock
Page I
Financing Plan
• Interest before and during construction and for one year after completion
of construction~ whether or not capitalized;
• The amount of any contributions made by the municipality from general
revenue for the implementation of the project plan;
• Imputed administrative costs, including reasonable charges for the time
spent by employees of the municipality in connection 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.
3. Economic Feasibility Study.
• An economic feasibility study has been included and is included as a part
of this Financing Plan as Appendix C.
4. The estimated amount of bonded indebtedness to be incurred.
• No bonded indebtedness is anticipated at this time.
5. The time when related costs or monetary obligations are to be incurred.
• Funds will be expended on a "pay-as-you-go" basis.
6. A description of the methods of financing aU 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 on real property in the Zone.
• Project costs will be financed using tax increment funds received and no
new debt is envisioned at this time. The revenue sources will be the real
property taxes captured by the Zone, which will account for 100% of
revenues used to fund project costs. For the Financial Plan, it is assumed
that all taxing jurisdictions will participated at 100% of their incremental
taxable value.
7. The current total appraised value of taxable real property in the Zone.
• The current appraised value of the taxable real property in the Zone is
approximately $137.8 Million using the 2006 values provided by the
Lubbock Central Appraisal District.
CBD Second Amended Finance Plan
City of Lubbock
Page2
Financing Plan
8. The estimated appraised valued of the improvements in the Zone during
each year of existence.
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
• The estimated appraised value of the improvements in the Zone per year is
listed in the following table.
Table 1
City of Lubbock, TX
Captured Value of Existing & New Development
CBD TIF Reinvestment Zone
New
Base Assessed Adjusted Base Development
Value Assessed Value Assessed Value
o/o Increase $millions $ millionsa
$ 101.4
102.0
114.0
116.0
128.0
137.0
1.0 138.4 2.7
1.0 142.5 2.8
1.2 147.0 2.9
1.4 152.0 2.9
1.6 157.4 3.0
1.8 163.3 3.1
1.8 169.5 3.3
1.8 175.8 3.4
1.8 182.5 3.5
1.8 189.3 3.6
1.5 195.9 3.8
1.5 202.7 3.9
1.5 209.7 4.1
1.5 216.9 4.2
1.5 224.4 4.3
Total Assessed
Value
$millions
101.4
102.0
114.0
116.0
128.0
137.0
141.1
145.3
149.9
154.9
160.4
166.5
172.7
179.2
186.0
193.0
199.7
206.6
213.7
221.1
228.8
~o/o on prior year adjusted base value was used to estimate new
development.
Actual new development has run in the 4.3% growth range.
CBD Second Amended Finance Plan
City of Lubbock
Page 3
Year
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Total
Financing Plan
• The estimated annual incremental funds available from development and
redevelopment in the Zone are listed in the following table.
Table 2
City of Lubbock, TX
Annual Incremental Funds Available
CBD TIF Reinvestment Zone
Total Assessed Base Assessed Annual Captured Annual Tax
Value Value Value Increment
$millions $ millionsa $millions $thousands
$ 105.9 a 105.9
107.0 a 105.9 1.1
114.0 105.9 8.1 56.0
116.0 105.9 10.1 78.6
128.0 105.9 22.1 155.0
137.0 105.9 31.1 272.7
141.1 105.9 35.3 306.8 b
145.3 105.9 39.4 343.1 b
149.9 105.9 44.0 383.1 b
154.9 105.9 49.1 427.0 b
160.4 105.9 54.6 475.0 b
166.5 105.9 60.6 527.5 b
172.7 105.9 66.9 582.0 b
179.2 105.9 73.4 638.6 b
186.0 105.9 80.1 697.3 b
193.0 105.9 87.1 758.2 b
199.7 105.9 93.8 816.3 b
206.6 105.9 100.7 876.5 b
213.7 105.9 107.9 938.7 b
221.1 105.9 115.3 1,003.1 b
228.8 105.9 122.9 1,069.7 b
$ 10~405.1
•Adjusted
bBased on projected tax rates of:
City--$0.46199; County--$0.28576; Hospital--$0.11420; and Water District--$0.00830
9. The duration of the Zone.
The duration of the Zone is 20 years.
CBD Second Amended Finance Plan
City of Lubbock
Page 4
Financing Plan
Appendix A
CBD St¢ond Amended Finance Plan
City of Lubbock
PageS
Financing Plan
Appendix B
CBD TIF Project Costs
Rehabilitation/Beautification Projeds
I. Update ofthe Downtown Redevelopment Plan
2. Landscaping, lighting and replacement and improvement of sidewalks,
curbs and gutters as needed (Examples: A venue 0 to link Civic Center
with Broadway, Buddy Holly to link Depot District with Broadway).
3. Gateway/Entranceway development and improvement
Project Cost
$150,000
$670,000
$2,000,000
4. Planning for and participation in development (construction or renovation)
of a Visitor's Center.
$300,000
5. Public Art Projects.
6. Participation in landscaping of freeways and interchanges.
7. Participation in development of a "Mercado/public Plaza" and/or
"Farmer's Market".
8. Participation in development of a rail tenninal and related facilities.
9. Outdoor stage in Depot District.
10. Public expenses related to development of major convention-type
hotel.
11. Development of public parking
12. Infrastructure and utilities in connection with new construction and
renovation projects. (Public/Private partnerships)
13. Administrative Costs
TOTAL PROJECTS
$187,000
$300,000
$600,000
$300,000
$150,000
$2,000,000
$2,000,000
$1,448,100
$300,000
$10,405,100
CBD Second Amended Finance Plan
City of Lubbock
Page 6
PROJECT PLAN
(Second Amended)
Central Business District
Tax Increment Financing Reinvestment Zone
LUBBOCK, TEXAS
Prepared for
City of Lubbock
November 2006
I PROJECT PLAN
The City of Lubbock Central Business District (CBD) has been typically developed over the
years with office, retail and governmental agency uses. Like many cities, retail has moved to
shopping areas and other areas outside the CBD and office development has stagnated. In an
effort to reverse that trend and to stimulate further development downtown, the City in
December 1986 established a Tax Increment Financing (TIF) District within the Neighborhood
Development Program Area under Texas Urban Renewal Law. This district included a large
portion of the CBD and the North and South Overton neighborhoods. Unfortunately, with the
real estate market downturn in the late 1980's and conversion of space from private to public
use, the existing TIF has a tax value below the TIF 1986 base value and will be terminated.
At this time, CBD values appear to have stabilized and have increased slightly over the last two
years. To provide further stimulus to development and redevelopment in the CBD, the City
plans to establish a new CBD TIF Reinvestment Zone with a different Boundary than the current
TIF. City Staff, CenterCorp and representatives of the jurisdictions that levy taxes in the area
have developed a list of public infrastructure projects designed to stimulate new development
and redevelopment in the CBD. It is expected that the Central Business District Tax Increment
Financing Reinvestment Zone planned expenditure of $10.4 Million for public infrastructure
improvements will result in future development and redevelopment in the Zone which will
increase the taxable value by approximately $122.9 Million over the Zone's 20-year life.
As set forth in Section 311.011 of the Tax Increment Financing Act of the Tax Code, the Project
Plan for the Central Business District Tax Increment Financing 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 and proposed uses of real property
in the Central Business District Tax Increment Financing Reinvestment Zone
2. Proposed changes of zoning ordinances, the master plan of the municipality,
building codes, and other municipal ordinances.
No changes of zoning ordinances, building codes~ or other municipal ordinances are
anticipated at this time. As indicated in the project list, an update of the Downtown
Redevelopment Plan is anticipated.
3. A list of estimated non-project costs.
Non-project costs within the Zone area are those development costs not paid for by
the Zone. These costs will include~ but are not limited to, $51.6 Million of new
development.
Page 2
CBO Second Amended Projea Plan
City of Lubbock
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.
Page 3
CBD Second Amended Projea Plan
City of Lubbock
Cost of Infrastructure Improvements Planned
CBD TIF Reinvestment Zone
Rehabilitation/Beautification Projects
I. Update of the Downtown Redevelopment Plan
2. Landscaping, lighting and replacement and improvement of sidewalks,
curbs and gutters as needed (Examples: A venue 0 to link Civic Center
with Broadway, Buddy Holly to link Depot District with Broadway).
3. Gateway/Entranceway development and improvement
4. Planning for and participation in development (construction or renovation)
of a Visitor's Center.
5. Public Art Projects.
6. Participation in landscaping of freeways and interchanges.
7. Participation in development of a "Mercado/public Plaza" and/or
"Fanner's Market".
8. Participation in development of a rail terminal and related facilities.
9. Outdoor stage in Depot District.
10. Public expenses related to development of major convention-type
hotel.
11. Development of public parking
12. Infrastructure and utilities in connection with new construction and
renovation projects. (Public/Private partnerships)
13. Administrative Costs
TOTAL PROJECTS
Project Cost ·
$150,000
670,000
2,000,000
300,000
187,000
300,000
600,000
300,000
150,000
2,000,000
2,000,000
1,448,100
300,000
$10,405,100
Page 4
CBD Second Amended Proje~t Plan
City of Lubbock
Exhibit A
CBD TIF Existing and
Proposed land Use
November 2006 -Commercial -lnd..nrial -Pett<s & Recreation -PuDiieV .. -R$SJ<Ien!ial HogJ>.Oensrty -R..,<clontial Mt<llur!Wlemity
c::J R"idontiollow.O-'Iy -Treo~on & U~li~e$
Vac4nt Lencl
c:::J Cenlraf 8u1Slnel'l D<ttr<et TIF
• IIOIITM
. ""'
'"'
Page 5
CBD Second Amended Projea Plan
City of Lubbock