HomeMy WebLinkAboutOrdinance - 2008-O0100 - Ordinance Approving 3Rd Amended Central Business Tax Increment Plan - 11/20/2008First Reading
November 20, 2008
Item No. 5.2
ORDINANCE NO. 2008-oOlOO
Second Reading
December 4, 2008
Item No. 5.10
AN ORDINANCE APPROVING THE THIRD AMENDED CENTRAL
BUSINESS DISTRICT TAX INCREMENT FINANCE REINVESTMENT
ZONE PROJECT PLAN AND FINANCE 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, a First
Amended Project Plan and Financing Plan approved November 4, 2004, in Ordinance
2004-00132 and a Second Amended Project Plan and Financing Plan approved
January 12, 2007, in Ordinance 2006-00137; 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 Third Amended Project Plan and a Third 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 Third 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
Third Amended Finance Plan includes, as required by § 311.011 of the Act, all of
the following items:
1) 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 Third Amended Plan Approval Ordinance
Page2
b) That the Central Business District Tax Increment Financing Reinvestment Zone
Third 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 zoning 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 lbird Amended Plan is feasible and conforms to the City of Lubbock
Comprehensive Plan.
SECTION 3: That the Central Business District Tax Increment Financing
Reinvestment Zone Third Amended Project Plan and the Central Business District Tax
Increment Financing Reinvestment Zone Third 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 Third Amended Plan Approval Ordinance
Page3
AND IT IS SO ORDERED
PASSED by the City Council on first reading this 20th day ofNovember, 2008.
PASSED by the City Council on second reading this 4th day of Decembe~ 2008.
TOM MARTIN, MAYOR
ATTEST:
APPROVED AS TO CONTENT:
i n, City Manager
Development Services
APPROVED AS TO FORM:
~~~..._~
Linda L. Chamales
Economic Development Attorney
LC:/Cityatt/LindaffiF.CBD-THIRD AMENDED PLAN ADOPTION ORD
November 7, 2008
CBD TIF Third Amended Plan Approval Ordinance
Page4
Ordinance No. 2008-oOlOO
PROJECT PLAN
(Third Amended)
Central Business District
Tax Increment Financing Reinvestment Zone
LUBBOCK, TEXAS
Prepared for
City of Lubbock
November 2008
I PROJECT PLAN
The City of Lubbock Central Business District (CBD) is predominately made up of 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 December 1986, in an effort to
reverse that trend and to stimulate further development downtown, the City established a Tax
Increment Financing (TIF) District within the Neighborhood Development Program Area under
Texas Urban Renewal Law. This TIF District included a large portion of the CBD and the North
and South Overton neighborhoods. Unfortunately, the real estate market downturn in the late
1980's and the conversion of space from private to public use caused the tax values to fall below
the 1986 base value. Due to the reduced values, the TIF District was terminated.
In 2001, values in the CBD had stabilized and had begun to increase. To provide additional
stimulus to development and redevelopment in the CBD, the City established a new CBD TIF
Reinvestment Zone (Zone) with a different Boundary than the original TIF District. The
estimated revenues in the Zone of $10.4 million are anticipated to be spent on public
infrastructure improvements to further development and redevelopment in the Zone. The current
financial model for the Zone estimates that taxable value will increase approximately $91.8
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 include the following elements:
l. 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. An update of the Downtown Redevelopment Plan has been
completed.
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, $12.3 million of new
development.
4. A statement of a method of relocating persons to be displaced as a result of
implementing the plan.
Page 2
CBD Third Amended Project Plan
City of Lubbock
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 vohmtary 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 Third Amended Project Plan
City of Lubbock
Cost of Infrastructure Improvements Planned
CBD TIF Reinvestment Zone
Rehabilitation/Beautification Projects
1. Update of the Downtown Redevelopment Plan
2. Landscaping, lighting and replacement and improvement of sidewalks,
curbs and gutters as needed (Examples: Avenue 0 to link Civic Center
with Broadway, Buddy Holly to link Depot District with Broadway).
3. Gateway/Entranceway development and improvement
4. Organizational and Professional Service costs including planning,
architectural, and environmental studies necessary to implement the plan.
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. Outdoor stage in Depot District.
9. Public expenses related to development of major convention-type
hotel.
10. Development of public parking
II. Infrastructure and utilities in connection with new construction and
renovation projects. (Public/Private partnerships)
12. Administrative Costs
TOTAL PROJECTS
Project Cost
$150,000
670,000
1,000,000
2,270,000
187,000
300,000
300,000
150,000
2,000,000
1,500,000
1,578,100
300,000
$10,405,100
Page 4
CBD Third Amended Project Plan
City of Lubbock
Exhibit A
CBD TIF Existing and
Proposed Land Use
November 2006
-Comme<Cral
-lncMctial
-Pllks & R~1cn
-~.:use
-ROSidtn!llll H1gM)OnS1~
-ReSidentJBI Med..,..Dens,rty
Residenl!allow-Oensity
-Trmsponeoon & Ublmes
vacant land c:::::J Central Bu$ont$$ Dm~a TIF
1U 1000 tHO Hit -
Page 5
CBD Third Amended Project Plan
City of Lubbock
Ordinance No. 2008~100
Financing Plan
(Third Amended)
Central Business District
Tax Increment Financing Reinvestment Zone
LUBBOCK, TEXAS
Prepared for
City of Lubbock
November 2008
Financing Plan
I FINANCING PLAN
The Financing Plan provides infonnation on the projected impact that the Central
Business District Tax Increment Financing Reinvestment Zone (Zone) could have on the
property illustrated in Appendix A. The Financing Plan also describes how that impact
could be utilized to enhance the area and region through leveraging the resources of each
entity that participates 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 costs.
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 ofthe 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 Third Amended Finance Plan
City ofLubbock
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 conducted and is included as a part
ofthis Financing Plan as Appendix C.
4. The estimated amount of bonded indebtedness to be incurred.
• The CBD TIF does not have bonded indebtedness at this time, but as the
plan progresses, bonds could be sold in the future.
5. The time when related costs or monetary obligations are to be incurred.
• Funds are expended on a "pay-as-you-go" basis at this time.
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 on real property in the Zone.
• Project costs are financed using tax increment funds received at the
present time. Debt could be issued in the future. The revenue sources are
real property taxes captured by the Zone, which accounts for 1 00% of
revenues used to fund project costs at the present time. For the Financing
Plan, all taxing jurisdictions, excluding the school district, have agreed to
participate at 100% oftheir incremental taxable value.
7. The current total appraised value of taxable real property in the Zone.
• The current appraised value, before exemptions, of the taxable real
property in the Zone is approximately $165.8 million using the 2008
values provided by the Lubbock Central Appraisal District.
CBD Third Amended Finance Plan
City of Lubbock
Page 2
Financing Plan
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.
Table 1
City of Lubbock, TX
Captured Value of Existing & New Development
CBD TIF Reinvestment Zone
New
Base Assessed Adjusted Base Development Total Adjusted
Value Assessed Value Assessed Value Assessed Value
Year %Increase $millions $millions" $millions
2001 $ 101.4 101.4
2002 101.2 101.2
2003 108.6 108.6
2004 115.9 115.9
2005 122.5 122.5
2006 137.2 137.2
2007 155.8 155.8
2008 159.0 1.3 160.3
2009 1.4 159.9 4.8 164.7
2010 1.4 164.2 10.9 175.1
2011 1.4 174.6 2.4 177.0
2012 1.4 176.5 2.5 179.0
2013 1.4 178.5 2.5 181.0
2014 1.4 180.5 2.5 183.0
2015 1.4 182.5 2.6 185.0
2016 1.4 184.5 2.6 187.1
2017 1.4 186.5 2.6 189.1
2018 1.4 188.6 2.7 191.2
2019 1.4 190.6 2.7 193.4
2020 1.4 192.8 2.8 195.5
2021 1.4 194.9 2.8 197.7
4 1.4% on prior year adjusted base value was used to estimate new development.
CBD Third Amended Finance Plan
City of Lubbock
Page 3
Financing Plan
• The estimated annual incremental funds available from development and
redevelopment in the Zone are listed in the following table.
Tablel
City of Lubbock, TX
Annual Incremental Funds Available
CBD TJF Reinvestment Zone
Total Adjusted Base Assessed Annual Increment
Value Value Value
Year $millions $ millionsa $millions
2001 $ 101.4 101.4
2002 101.2 101.4 (0.2)
2003 108.6 101.4 7.2
2004 115.9 101.4 14.5
2005 122.5 a 105.9 16.6
2006 137.2 a 105.9 31.4
2007 155.8 105.9 49.9
2008 160.3 105.9 54.5
2009 164.7 105.9 58.8
2010 175.1 105.9 69.2
2011 177.0 105.9 71.2
2012 179.0 105.9 73.1
2013 181.0 105.9 75.1
2014 183.0 105.9 77.1
2015 185.0 105.9 79.2
2016 187.1 105.9 81.2
2017 189.1 105.9 83.3
2018 191.2 105.9 85.4
2019 193.4 105.9 87.5
2020 195.5 105.9 89.6
2021 197.7 105.9 91.8
Total
4Revised Base Year
hsased on projected tax rates of:
Annual Tax
Increment
$thousands
57.2
78.6
155.0
277.8
424.9 °
475.9 °
514.0 0
604.9 °
621.9 I>
639.1 0
656.4 ~
674.0 D
691.7 0
709.6 0
727.8 D
746.1 0
764.6 °
783.4 0
802.4 0
$ 10,405.1
City--$0.4464; County-$0.3262; Hospital--$0.12067; and Water District--$0.00794
9. The duration ofthe Zone.
The duration of the Zone is 20 years.
CBD Third Amended Finance Plan
City ofl.ubbock
Page 4
Financing Plan
Appendix A
CBD Third Amended Finance Plan
City of Lubbock
Page 5
Financing Plan
Appendix B
CBD TIF Project Costs
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: Avenue 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
$1,000,000
4. Organizational and Professional Service Costs including planning,
architectural, and environmental studies necessary to implement the plan.
$2,270,000
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. Outdoor stage in Depot District.
9. Public expenses related to development of major convention-type
hotel.
10. Development of public parking
11. Infrastructure and utilities in connection with new construction and
renovation projects. (Public/Private partnerships)
12. Administrative Costs
TOTAL PROJECTS
$187,000
$300,000
$300,000
$150,000
$2,000,000
$1,500,000
$1,578,100
$300,000
$10,405,100
CBD Third Amended Finance Plan
City of Lubbock
Page 6
Appendix C Ordinance No. 2008-QOlOO
TAX INCREMENT
FEASIBILITY
ANALYSIS
Central Business District
Tax Increment Financing Reinvestment Zone
LUBBOCK, TEXAS
Prepared for
City of Lubbock
November 200 I
SCHRADER & CLINE, LLC
4800 Broadway, Suite A
Addison, TX 75001
Feasibility Analysis
Page I
Appendix C
INDEX
Index
Forward
Section 1: History
Section II: Current Situation
Section III: Future Plans
Section IV: Tax Increment Analysis
Section V: Tables
PAGE
2
3
4
5
6
8
10
Feasibility Analysis
Page 2
Appendix C
FOREWORD
Schrader & Cline, LLC was asked to prepare a Feasibility Analysis using tax increment
financing to encourage accelerated development and redevelopment of the Central Business
District (CBD) Tax Increment Finance Reinvestment Zone in the City of Lubbock, Texas. This
area of the City needs public infrastructure projects which will provide a stimulus for new
development and redevelopment of existing facilities.
Section I is an introduction and summarizes the history of the CBD.
Section I I reviews the current situation.
Section III details future plans, and
Section IV details the tax increment analysis
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
November 2001
Feasibility Analysis
Page 3
Appendix C
I Section 1: HISTORY
Lubbock, Texas currently ranks as the 92nd largest city in the United States, the 11th largest city
in Texas, and the largest city in the west Texas region. The city has a stable economy with
strong agribusiness, manufacturing, wholesale and retail trade, services and government sectors.
Lubbock's central location and access to transportation have also contributed to the city's
development as a regional warehousing and distribution center.
The Central Business District (CBD) developed over the years with the typical downtown uses of
office, retail and governmental agency uses. However, as with many CBD areas during the
1960-1980 time frame, much of the retail relocated to shopping centers and other areas outside
the CBD. In an effort to reverse that trend and to stimulate further development downtown, the
City in December 1986 established a Tax Increment Financing 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, timing could not have been worse. Although a small amount oftax increment
(about $200,000) was generated in the early years, the demise of the real estate market in the late
1980's completely stagnated any new development. In addition, there was a switch of some
major downtown properties from private to public use during the 1990's, which put the tax value
ofthe TIF significantly below its 1986 base tax value. Although values have increased from the
lowest point, the TIF values are still below the base. Therefore, it seems reasonable to not
extend the 1986 TIF beyond its December 2001 termination date.
Feasibility Analysis
Page4
Appendix C
I Section II: CURRENT SITUATION
At this time, it appears values in the CBD have stabilized and there have been small increases in
value during the last two years (2.3% from 1999-2000 and 2.7% from 2000-2001). The
increased values have been created by a slight increase in overall real property values and some
small increases generated by rehabilitation of several commercial properties,
redevelopment/development in the Depot Entertainment District and the conversion of vacant
office and retail buildings to loft apartments. Based on what has happened in the CBD during
the past two years, it seems the area is poised for development and redevelopment but needs
additional stimulus which could be provided by TIF funds. However, because the taxable value
in the current TIF is still significantly below the base tax value the City plans to terminate it and
establish a new Central Business District Tax Increment Financing Investment Zone with a
different boundary.
Feasibility Analysis
Page 5
Appendix C
I Section III: FUTURE PLANS
To provide additional stimulus and promote further development and redevelopment in the CBD,
a list of public infrastructure projects has been developed by City staff and CenterCorp as shown
in Table 4.
These infrastructure projects are designed to:
• Enhance the appearance of the CBD;
• Provide or participate in development of public areas which will draw visitors to
the CBD; and
• Provide funds for public/private partnerships to stimulate new development in the
CBD and, more particularly, along the proposed Marsha Sharp Freeway.
As a result of the stimulus provided by the use of TIF funds during the proposed 20-year life of
the Reinvestment Zone area, we have projected values will continue to increase over the next
few years, but at a declining rate of increase. This would add about $1 0 M in value to the area
over the next seven years, through redevelopment and general overall value increases. Based on
the assumption that frontage roads for the new Marsha Sharp Freeway will be complete by 2008,
we have projected that values will begin increasing at a higher rate for a few years, stimulated by
development activity along the Freeway frontage roads, and then the rate of increase will begin
to decline once again.
Feasibility Analysis
Page 6
Appendix C
We have projected that new development in the Reinvestment Zone area will be rather limited
until completion of the Freeway frontage roads. However, once the frontage roads are complete,
we have projected retail, small office and service uses will develop along the frontage roads. In
addition, we have projected completion of a 300-room hotel in 2010 and a 150,000 square foot,
mid-rise office building in 2014.
Based on our projections, the overall value of the TIF Reinvestment Zone area will increase at an
average of about 3% per year. This increase in value will generate almost $8M in tax increment
funds over the 20-year life of the zone. In addition to providing tax increment funds to pay for
public infrastructure, based on this analysis the taxing jurisdictions wiiJ receive more total funds
with the TIF than without within two years after TIF expiration. (Tables 5 and 6)
Feasibility Analysis
Page7
Appendix C
I 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 or an expanded 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 tax increment above the base from existing development and
redevelopment in the Zone, plus tax increment above the current base from all new development
in the Zone. Table 1 indicates the projected assessed value of existing development and
redevelopment in the Zone, plus the timing and value of new development in the Zone.
Feasibility Analysis
Page 8
Appendix C
Assessment policies in Lubbock County set building assessments at I 00% of fair market value,
roughly equal to construction costs for new construction. Assessed values are established as of
January I of the tax year. Thus, new development in 2001 goes on the tax rolls for the Tax Year
2002. 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
2003. Table 2 uses the Total Assessed Value as shown in Table 1 and deducts the Base Value of
$98 million, which generates the Annual Captured Value. Using the tax rates for each of the
taxing jurisdictions as shown in Table 2, the Annual Captured Value will yield the Annual Tax
Increment. Table 3 takes the same Annual Tax Increment and shows the distribution of that
increment by each taxing jurisdiction.
During the life of the CBD TIF Reinvestment Zone, the tax increment fund would coJiect a total
of $7,727,000. Following a "pay-as-you-go" basis, this would adequately fund the public
infrastructure projects shown as Rehabilitation/Beautification projects in Table 4. In addition,
Table 4 lists Incentive Projects which would be funded if the CBD TIF Reinvestment Zone is
more successful than we have projected.
Finally, Table 5 projects the tax income to all taxing jurisdictions without the CBD TIF
Reinvestment Zone and Table 6 projects the tax income to all taxing jurisdictions with the CBD
TIF Reinvestment Zone. As indicated in these tables, the income to all taxing jurisdictions
during the life of the Zone is almost as much with the Zone as it is without, and within two years
after termination of the zone, income is greater with the Zone than without.
Feasibility Analysis
Page9
Appendix C
I Section V: TABLES
Table 1
Captured Value of Existing & New Development
CBD TIF Reinvestment Zone
Lubbock, Texas
New
Base Assessed Adjusted Base Development Total Assessed
Value Assessed Value Assessed Value Value
Year %Increase SM $M SM
2001 98 98
2002 2.0 100 100
2003 2.0 102 3 105
2004 1.5 104 107
2005 1.5 105 108
2006 1.5 107 Ill
2007 1.0 108 I 12
2008 1.0 109 2 115
2009 1.2 110 4 120
2010 1.4 112 10 132
201 I 1.6 114 6 140
2012 1.8 116 4 146
2013 1.8 118 2 150
2014 1.8 120 12 164
2015 1.8 122 2 168
2016 1.8 125 171
2017 1.5 127 2 175
2018 1.5 129 177
2019 1.5 131 2 181
2020 1.5 133 183
2021 1.5 135 185
Feasibility Analysis
Page 10
Appendix C
Table 2
Annual Incremental Funds Available
CBD TIF Reinvestment Zone
Lubbock, Texas
Total Assessed Base Assessed Annual Annual Tax
Value Value Captured Value Increment
Year SM SM SM SK*
2001 98 98 --
2002 100 98 2 -
2003 105 98 7 17
2004 107 98 9 61
2005 108 98 10 78
2006 Ill 98 13 87
2007 112 98 14 113
2008 115 98 17 122
2009 120 98 22 148
2010 132 98 34 191
2011 140 98 42 295
2012 146 98 48 365
2013 150 98 52 417
2014 164 98 66 451
2015 168 98 70 573
2016 171 98 73 608
2017 175 98 77 634
20 18 177 98 79 668
2019 181 98 83 686
2020 183 98 85 720
2021 185 98 87 738
2022 755
TOTAL 7,727
*Based on I 00% participation and tax rates of:
City--$ 0.57000; County--$0.191 70~ Hospital--$0.09798; and Water District--$0.00830.
Feasibility Analysis
Page 11
Appendix C
Table 3
Annual Incremented Funds
CBD TIF Reinvestment Zone
~By Taxing Jurisdiction-
Lubbock, Texas
Annual
Captured City of Lubbock Hospital
Year Value, Lubbock, County, District,
$M $K $K $K
2001 ----
2002 2 ---
2003 7 11 4 2
2004 9 40 13 7
2005 10 51 17 9
2006 13 57 19 10
2007 14 74 25 13
2008 17 80 27 14
2009 22 97 33 17
2010 34 125 42 22
2011 42 194 65 33
2012 48 239 81 41
2013 52 274 92 47
2014 66 296 100 51
2015 70 376 127 65
2016 73 399 134 69
2017 77 416 140 72
2018 79 439 148 75
2019 83 450 152 77
2020 85 473 159 81
2021 87 485 163 83
2022 -496 167 85
TOTAL 5,072 1,708 873
Total
Water Annual Tax
District, Increment,
$K $K
-----17
1 61
1 78
1 87
1 113
1 122
1 148
2 191
3 295
4 365
4 417
4 451
5 573
6 608
6 634
6 668
7 686
7 720
7 738
7 755
74 7,727
Feasibility Analysis
Page 12
Appendix C
Table 4
Cost of Infrastructure Improvements Planned
CBD TIF Reinvestment Zone
Lubbock, Texas
Rehabilitation/Beautiful Projects
l. 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 "Farmer'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 a major convention-type hotel
II. Infrastructure and utilities in connection with new construction and
renovation projects. (Public/Private Partnerships)
TOTAL REHABILITATION/BEAUTIFICATION PROJECTS
Incentive Projects
12. Infrastructure and Utilities in connection with new construction and
renovation projects. (Public/Private Partnerships)
13. Development of public parking lots and public parking buildings (Depot
District, downtown core)
TOTAL INCENTIVE PROJECTS
GRAND TOTAL
$ 120,000
500,000
2,000,000
250,000
100,000
200,000
500,000
200,000
150,000
2,000,000
1,700,000
s 7,720,000
$ 8,300,000
2,000,000
$ l 0,300.000
$ 18,020,000
Feasibility Analysis
Page 13
Appendix C
Table 5
Tax Income to ALL Taxing Jurisdictions
WITHOUT CBD TIF Reinvestment Zone
Lubbock, Texas
Personal
Real Assessed Property Total Assessed
Year Tax Assessed Tax Value
Value $M Value$M* $M
2001 98 44 142
2002 100 45 145
2003 102 46 148
2004 104 47 151
2005 105 47 152
2006 107 48 155
2007 108 49 157
2008 109 49 158
2009 110 50 160
2010 112 50 162
2011 114 51 165
2012 116 52 168
2013 118 53 171
2014 120 54 174
2015 122 55 177
2016 125 56 181
2017 127 57 184
2018 129 58 187
2019 131 59 190
2020 133 60 193
2021 135 61 196
2022
Subtotal
2022 137 62 199
2023
Subtotal
2023 139 63 202
2024
Th.t!!
Tax Income
$M
1.23
1.26
1.28
1.31
1.32
1.35
1.36
1.37
1.39
1.41
1.43
1.46
1.48
1.51
1.54
1.57
1.60
1.62
1.65
1.68
1.70
30.52
1.73
Jill
1.75
~
value
Feasibility Analysis
Page 14
Appendix C
Table 6
Tax Income to.£!. Taxing Jurisdictions
WITH CBD TIF Reinvestment Zone
Lubbock, Texas
Personal
Real Assessed Property Total Assessed
Year Tax Assessed Tax Tax Value
Value$M Value$M $M
2001 98 44 142
2002 98 45 143
2003 98 47 145
2004 98 48 146
2005 98 49 147
2006 98 50 148
2007 98 50 148
2008 98 52 150
2009 98 54 152
2010 98 59 157
2011 98 63 161
2012 98 66 164
2013 98 68 166
2014 98 74 172
2015 98 76 174
2016 98 77 175
2017 98 79 177
2018 98 80 178
2019 98 81 179
2020 98 82 180
2021 98 83 181
2022
Subtotal
2022 188 85 273
2023
Subtotal
2023 191 86 277
2024
Total
Tax Income
$M
1.23
1.24
1.26
1.27
1.28
1.28
1.28
1.30
1.32
1.36
1.40
1.42
1.44
1.49
1.51
1.52
1.54
1.55
1.55
1.56
1.57
lY1
2.37
31.74
2.40
34.14
Feasibility Analysis
Page 15