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
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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:
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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;
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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").
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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
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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.
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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~
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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