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HomeMy WebLinkAboutOrdinance - 2002-O0029 - Designating And Describing Bounderies Of A Tax Increment Reinvesting Zone; - 02/28/2002First Reading February 28, 2002 Item No. 50 ORDINANCE NO. 2002-00029 Second Reading March 14, 2002 Item No. 37 AN ORDINANCE DESIGNATING AND DESCRIBING THE BOUNDARIES OF A TAX INCREMENT FINANCING REINVESTMENT ZONE FOR THE NORTH OVERTON AREA OF LUBBOCK, TEXAS; ESTABLISHING THE DURATION OF THE ZONE; ESTABLISHING A TAX INCREMENT FUND; AND ESTABLISHING A BOARD OF DIRECTORS FOR THE TAX INCREMENT FINANCING REINVESTMENT ZONE. WHEREAS. a petition has been received from the owners of more than 50 percent of the appraised value of an area within the City of Lubbock, in North Overton bounded by the Marsha Sharp Freeway on the north, University A venue on the west, Broadway on the south and the alley between Avenue Rand Avenue Q on the cast, (as determined by the most recent certified appraisal roll for Lubbock County), requesting creation of a tax increment financing reinvestment zone under Section 3ll.005(a)(5) of the Tax Increment Financing Act; and WHEREAS, the City Council of the City of Lubbock, Texas, (the "City"), desires to promote the development of the North Overton area of the City of Lubbock by the creation of a Tax Increment Financing Reinvestment Zone, as authorized by the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code, Vernon's Texas Codes Annotated (the "Act"); and WHEREAS, written notice containing a description of the proposed boundaries of the zone, the tentative plans for the redevelopment of the zone, and an estimate of the general impact of the proposed zone on property values and tax revenues, was provided to the governing body of each taxing unit that levies real property taxes in the proposed reinvestment zone, more than 60 days prior to the public hearing; and \VHEREAS, a forn1al presentation which included a description of the proposed boundaries of the zone, the tentative plans for redevelopment, and an estimate of the general impact of the proposed zone on property taxes in the proposed zone has been given to governing body of each taxing unit that levies real property taxes in the proposed zone; and WHEREAS, the City has called a public hearing to hear public comments on the creation of the proposed Tax Jncrement Financing Reinvestment Zone and its benefits to Nonh Ovc:non TJF Ordinance l'ogc I the City and the property in the proposed Tax Increment Financing Reinvestment Zone; and WHEREAS, notice of such public hearing was published in the Lubbock Avalanche-Journal, a daily paper of general circulation in the City, such publication date being not later than seven (7) days prior to the date of the public hearing; and WHEREAS, such hearing was convened at the time and place mentioned in the published notice, on the 28th day of February, 2002, at II :30 o'clock a.m., in the Council Chamber of the City of Lubbock, Texas; and WHEREAS. the City, at such hearing, invited any interested person, or his/her representative, to appear and speak for or against the creation of the Tax Increment Financing Reinvestment Zone, the boundaries of the proposed Tax Increment Financing Reinvestment Zone, whether all or part of the territory which is described in Exhibit "A" attached hereto and depicted on the map attached hereto as Exhibit "B" should be included in such proposed Tax Increment Financing Reinvestment Zone, the concept of tax increment financing and the appointment of a Board of Directors for the proposed Tax Increment Financing Reinvestment Zone; and WHEREAS, all owners of property located within the proposed Tax Increment Financing Reinvestment Zone and all other taxing units and other interested persons were given a reasonable opportunity at such public hearing to protest the creation of the proposl'd Tax Increment Financing Reinvestment Zone and/or the inclusion of their properly in such Tax Increment Financing Reinvestment Zone; and WHEREAS, the proponents of the Tax Increment Financing Reinvestment Zone offered evidence, both oral and documentary, in favor of all of the foregoing matters relating to the creation of the Tax Increment Financing Reinvestment Zone, and opponents of the Tax Increment Financing Reinvestment Zone were given the opportunity to appear to contest crcntion of the zone, after which the hearing was closed; NOW THEREFORE: Nonh Ovenon TIF Ordinance Page 2 BE IT ORDAINED llY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SE('TIO!\ I: Tllt\T th.: racts and n.:citations containeu in the preamble of this ,,r"clirr<trKl' an: hl·n:by f\.lund and d~clared to be true and correct. SECTIO~ 2: TIIAT the City Council, after conducting such hearing and having henrd SU<.:h C\'idencc anu IL'S!imony, has made the following findings and detenninations bas~d on the eYidem:e and testimony prescnteu to it: a) That thl' public hearing on adoption of the Tax Increment Financing l{l·rrl\ c~tmcnt /urll" ha~ b.:cn properly called, helu and conducted and that notice uf such hearing has been publish<!d as required by law and delivered to all taxing units O\'l.~rlapping the terTitory inside the proposed Tax Increment Financing J~~:in vestment Zone. h) Thnt ncntion or the proposed Tax Increment Financing Reinvestment Zone \\ itll buund;rric~ a:-. described in r~xhibits "A" and "13" will result in benefits to thl· ( "ity. its rcsidl'llls. and propL:rty owners, in general, anu to the property, residents and property owners in the Tax Increment Financing Reinvestment Zone. c) That I he area ts "unproducti w, underdeveloped or blighted" within the ml·aning or article Vll I. section I -g(b) or the Texas Constitution. d) Tlw t 1 he 'J'~r x I llLT<:!llen 1 Financing l~ci nv~:stmcnt Zone, as de fincu in Ex hi bits ··.A.·· ;mLl ··n". meets the criteria for the creation of a Tax Increment financing R~ i nvcsl men I /.one sd l'orth in Sect ion 3 I 1.005 or the Act in thal: {i) It is a contiguous geographic area locuted wholly within the corporate limits of the City. ( i i) It substarttially impairs the sound growth of the municipality crrating the lotH: t)r constitutcs an economic or social liability in its present L"lllld j [ iu11 and liSL' bt:l"~HlSt: 0 f l he pn:sence 0 f: a. 1\ substantial numb~.:r ur deteriorated, or deteriorating structures; X orth 0\'crton Tir Ordinan,·e b. Faulty lot layout in relation to size, adequacy, accessibility, or usefulness; and/or c. The deterioration of site or other improvements; (iii) It is an area described in a petition requesting that the area be designated as a reinvestment zone by the owners of property constituting at least 50 percent of the appraised value of the property in the area according to the most recent certified appraisal roll. e) That the total appraised value of all taxable real property in the proposed Tax Increment Financing Reinvestment Zone according to the most recent appraisal rolls of the City, together with the total appraised value of taxable real property in all other existing Tax Increment Financing Reinvestment Zones within the City, according to the most recent appraisal rolls of the City, does not exceed 15 percent of the current total appraised value of taxable real property in the City and in the industrial districts created by the City. 0 That the proposed Tax Increment Financing Reinvestment Zone does not contain more than 15 percent of the total appraised value of real property taxable by a county or school district. g) That the development or redevelopment of the property in the proposed Tax Increment Financing Reinvestment Zone will not occur solely through private investment in the reasonable foreseeable future. h) That the improvements in the Tax Increment Financing Reinvestment Zone will significantly enhance the value of all taxable real property in the Tax Increment Financing Reinvestment Zone. SECTION 3. That the City hereby creates, under Section 311.005(a)(5) of the Act, a Tax Increment Financing Reinvestment Zone over the area described in Exhibit "A" attached hereto and depicted in the map attached hereto as Exhibit "B" and such Tax Increment Financing Reinvestment Zone shall hereafter be identified as the North Overton Tax Increment Financing Reinvestment Zone, City of Lubbock, Texas (the .. Zone" or "Tax Increment Financing Reinvestment Zone"). Nonh Overton TIF Ordinance Page4 SECTION 4. That there is hereby established a Board of Directors for the Zone, which shall consist of nine (9) members. The Board of Directors of the North Overton Tax Increment Financing Reinvestment Zone shall be appointed as follows: a) Six (6) members shall be appointed by the City Council, one (I) member shall be appointed by the Commissioner's Court of Lubbock County, one (I) member shall be the state senator in whose district the zone is located or his designee; and one (I) member shall be the state representative in whose district the zone is located or his designee. The initial Board of Directors shall be appointed by resolution of the governing bodies of the City and the taxing units as provided herein within sixty (60) days of the passage of this ordinance or within a reasonable time thereafter. All members appointed to the Board shall meet the eligibility requirements set forth in the Act. b) The terms of the board members shall be two-year terms. The City Council shall designate a member of the Board to serve as chairman of the Board of Directors, and the Board shall elect from its members a vice chairman and other officers as it sees fit. c) The Board of Directors shall make recommendations to the City Council con~crning the administration of the Zone. It shall prepare and adopt a Project Plan and Tax Increment Financing Reinvestment Zone Financing Plan for the Zone and must submit such plans to the City Council for its approval. The Board of Directors shall possess all powers necessary to prepare, implement and monitor such project and financing plans for the Tax Increment Financing Reinvestment Zone as the City Council considers advisable including the submission of an annual report on the status of the Zone. SECTION 5: That the Zone shall take effect on January I, 2002, and that the termination of the Zone shall occur on December 31, 2031, or at an earlier time designated by subsequent ordinance of the City Council in the event the City determines that the Zone should be terminated due to insufficient private investment, accelerated private investment or other good cause, or at such time as all project costs and tax Nonh Overton TIF Ordinance PageS increment bonds, if any, and the interest thereon, have been paid in full. The termination dntc may also be extended by subsequent ordinance of the City Council. SECTION 6: That the Tax Increment Base Value for the Zone which is the total appraised value of all taxable real property located in the Zone, is to be determined as of January I. 2002. the year in which the Zone was designated a Tax Increment Financing Reinvestment Zuuc. SECTION 7: That there is hereby created and established a Tax Increment Fund for the Zone which may be divided into such sub-accounts as may be authorized by subsequent resolution or ordinance, into which all Tax Increments, less any of the amounts not required to be paid into the Tax Increment Fund pursuant to the Act, are to be deposited. The Tax Increment Fund and any sub-accounts are to be maintained in an account by the City and shall be secured in the manner prescribed by law for funds of Texas cities. In addition, all revenues from the sale of any tax increment bonds and notes hereafter issued by the City, revenues from the sale of any property acquired as part of the Tax Increment Financing Plan and other revenues to be dedicated to and used in the Zone shall be deposited into such fund or sub-account from which money will be disbursed to pay project costs fur the Zone or to satisfy the claims of holders of tax in~n:ment bonds or notes issued for the Zone. SECTION 8: That if any section, paragraph, clause or prov1s1on of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or uncnforccability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. Nonh Overton TIF Ordinance Pagc6 AND IT lS SO ORDERED !>,\, SL:D by the City Council tlll fir. treadin g this 28th day ofl,ebruary, 200 2. P.:\SSE D by the City Co uncil on sec ond reading this 14th day of March, 2002. ATTl :ST: -Rebecca Gatza, Cit y Sec retary ·o IT ·.IT: Craig F, nn Managing Direc tor of Plan ning Linda L. Chamalcs Supervising Attorney. Office Practice I ( \ ·n~"n Lmd.t TII'JJrd-:-:0 r~hnw\ 1 <~. ~~~o~ Nunh Uvcrtun TIF Ordinnncc l';ogc 7 North Overton Tax Increment Finance District Proposed Boundary Description Exhibit A February 28, 2002 Ordinance No. 2002-0 0029 Beginning at the southwest comer of the intersection of Broadway and University Avenue; Then north along the western right-of-way of University Avenue to the northwest comer of 41h Street and University Avenue; Then east along the northern boundary of the 4th Street right-of-way to the western right- of-way of the alley between A venue R and Avenue Q; Then south to the northern right-of-way of 61h Street; Then west to the northwest comer of the intersection of 61h Street and Avenue R; Then south alon! the west right-of-way of Avenue R to the southwest comer of the intersection of 7 Street and Avenue R; Then east to the western right-of-way of the alley between Avenue Rand Avenue Q; Then south along the western right-of-way of the alley between A venue R and A venue Q to the southern right-of-way of Broadway; Then west to the point of beginning. •:·;,:: TIFBoundary Ordinance No. 2002-00029 North Overton Tax Increment Financing Reinvestment Zone February 2002 Exhibit B