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Home My WebLink AboutOrdinance - 2002-O0075 - Approving The N. Overton Tax Increment Finance Reinvestment Zone Project Plan - 06/26/2002First: Reading June 26, 2002 It:em No. 52 Second Reading July 11, 2002 It:em No. 40 ORDINANCE NO. zooz-ooo1s AN ORDINANCE APPROVING THE NORTH OVERTON DISTRICT TAX INCREMENT FINANCE REINVESTMENT ZONE PROJECT PLAN AND FINANCE PLAN AND THE BY-LAWS 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 appraised value of an area within the City of Lubbock bounded by the Marsha Sharp Freeway on the north, University A venue 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, created by the ordinance, has adopted By-Laws which have been submitted to the City Council for approval; and WHEREAS, the Board of Directors of the North Overton Tax Increment Financing Reinvestment Zone, in accordance with the Act, has prepared and adopted a North Overton Area Project Plan and a North Overton Area Financing Plan, and has also 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. NO TIF Plan Approval Ordinance Page 1 ···-~----~-----~-------------------'-- SECTION 2: THAT the Bylaws adopted by the Board of Directors of the North Overton Tax Increment Financing Zone are hereby approved. A copy of the Bylaws is attached hereto and incorporated in this Ordinance as if fully set forth herein. SECTION 3: THAT the City Council of the City of Lubbock makes the following findings regarding the North Overton Tax Increment Financing Reinvestment Zone Project Plan and the 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: a) That the North Overton Tax Increment Financing Reinvestment Zone Finance Plan includes, as required by§ 311.011 of the Act, all ofthe 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 ofbonded 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. NO TIF Plan Approval Ordinance Page2 b) That the North Overton Tax Increment Financing Reinvestment Zone 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 plan is feasible and conforms to the City of Lubbock Comprehensive Plan. SECTION 4: That the North Overton Tax Increment Financing Reinvestment Zone Project Plan and the 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 forth herein. SECTION 5: 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. NO TIF Plan Approval Ordinance Page3 AND IT IS SO ORDERED PAS SED by the City Council on first reading this 26th day of June, 2002. PASSED by the City Council on second reading this 11th day of July, 2002. ATTEST: ~J >R.L..: <'· ~ ':'-6 Rebecca Garza, City Secretary APPROVED AS TO CONTENT: APPROVED AS TO FORM: Linda L. Chamales Supervising Attorney, Office Practice LC:/Cityatt/Linda/TIF.NO-PLAN ADOPTION ORD June 14,2002 NO TIF Plan Approval Ordinance Page4 .. Ordinance No. 2002-00075 . . North Overton Area Tax Increment Finance Reinvestment Zone LUBBOCK, TEXAS Prepared for City of Lubbock JUNE 2002 ------------·--·· - 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 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" and appointed the Overton North Study Committee. This Committee formulated strategies to address the area's problems and potential. Among the strategies was the possibility of utilizing Tax Increment Financing. The City also 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 Study Committee and more particularly indicated, "the City must develop creative public/private joint development opportunities and provide public improvements as incentives for development". Through a series of economic and real estate factors, nothing materialized from the two studies during the 1990's, and the situation in North Overton continued to stagnate. However, at this time, a local developer has come forward with a plan to redevelop about 90% of the North Overton area and has petitioned the City to establish a Tax Increment Financing (TIF) District to provide the necessary public funds to enter into a public- private partnership. City staff, working with the developer, has prepared a list of public infrastructure projects which will stimulate and enhance the redevelopment of North Overton. It is expected that the North Overton Area Tax Increment Financing Reinvestment Zone planned expenditure of approximately $22 million for public infrastructure improvements will result in future development/redevelopment in the Zone which will increase the taxable value by approximately $159 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 ofthe property. Following is a map showing uses of real property in the North Overton Area TIF Reinvestment Zone and a map indicating potential locations of proposed public improvements in the zone. 2. Proposed changes of zoning ordinances, the master plan of the municipality, building codes, and other municipal ordinances. Page 1 North Overton Area Project Plan City of Lubbock Project Plan No changes anticipated at this time except to zoning ordinances. Zoning ordinances will be 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 area are those development costs not paid for by the Zone. These costs will include, but are not limited to, $171 Million of new development. 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 2 North Overton Area Project Plan City of Lubbock ; . . ' Project Plan Table 1 1 NORTH OVERTON PROJECT PLAN Cost, $ Cost, $ PROJECT BOND ISSUE 1 BOND ISSUE 2-5 TOTAL TIFCOST, $ PHASE 1-Fust 6 Years Marsha Sharp Frwy Frontage o Improve 8 Intersections + Frontage o Landscaping & street lighting University Avenue Boulevard o Signalize 3 Intersections o Landscape Median o Replace Street Lighting Pioneer Parl<: Improvements Eighth Street Boulevard o Reconstruction o Landscaping o Street lighting Main Street Reconstruction o Repairs/Replacement o Remove/Palletize Brick o Replace curb & gutter o Intersection Imprm o Street lighting Stann Sewer Landscaping, Sidewalks, Street Furniture, etc. Street lighting Commons, Land Acquisition Commons, Development Street Reconstroction/Resurfacing o Remove/replace curb & gutter o Bituminons Paving on remaining Streets Alley Paving Water Line Replacement Wastewater Line Replacement TOTAL BOND ISSUES (1-5) Administration TOTAL PHASE ITIF COST PHASE ll -Years 7-30 Public Inftastructure TOTAL TIF COST ~ 200~2006 0 0 0 0 443,100 0 0 0 0 144,410 26,250 0 189,000 0 75,500 40,000 918,260 90,000 1,008,%60 0 1.008,260 1,000,000 900,000 500,000 690,000 490,000 580,000 576,900 118,000 835,590 473,750 420,000 250,000 1,121,000 1,800,000 0 2,504,500 1,500,000 13,759,740 150,000 13,909,740 7,1100,000 20,909.740 1,000,000 900.000 500,000 690,000 490,000 1j!l23,100 576,900 118,000 980,000 500,000 420,000 250,000 1,121,000 1,989,000 0 2,580,000 1,540,000 14.678,000 240,000 14,918,000 7,000,000 21.918.000 Page 3 North Overton Area Project Plan City of Lubbock Ordinance No. 2002-Q0075 North Overton Area Tax Increment Financing Reinvestment Zone LUBBOCK, TEXAS Prepared for City of Lubbock JUNE2002 Financing Plan The Financing Plan provides information on the projected impact that the North Overton Area Tax Increment Finance Reinvestment Zone (Zone) could have on the property described in Exhibit 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. The proposed public improvements in the Zone are as follows: • 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 ofland and equipment and the clearing and grading ofland; • 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 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 Page 1 North Overton Area Financing Plan City of Lubbock, Texas Financing Plan • 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. 2. Estimated Project Cost of Zone, including administrative expenses. • Project costs are estimated at approximately $15 M for Phase I, $7M for Phase II, a total of $22 Million. Specific cost estimates are included in Table 1 of the Feasibility Analysis. 3. Economic Feasibilty Study. • An economic feasibility study has been completed and is included as a part of this Financing Plan. 4. The estimated amount of bonded indebtedness to be incurred. • It is anticipated at this time there could be five (5) bond issues during the 2003- 2007 time frame which would yield approximately $12M at issuance and an estimated additional $3M from coverage yielding a total of about $15M. 5. The time when related costs or monetary obligations are to be incurred. • Monetary obligations will be incurred with each bond issue; however, it is expected that development agreements will be in place, which would provide sufficient tax increment to pay debt coverage for each bond issuance. 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 tbe property taxes of each taxing unit on real property in the Zone. • Project costs will be financed using bond issues with payment provided by tax increment funds received. 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 and bonds issued. For the Financial Plan, it is assumed that all taxing jurisdictions will participate at 1 000/o 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 estimated at $24.4 Million. This value may be revised somewhat when 2002 values are certified by the Lubbock Central Appraisal District. Page2 North Overton Area Financing Plan City of Lubbock, Texas Financing Plan 8. The estimated appraised valued of the improvements in the Zone during each year of existence. Table 1 X!MB 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 TOTAL • The estimated appraised value of the improvements in the Zone per year is listed in the following table. ANNUAL CAPTURED VALUE DEMOLITIONS$ K NEW DEVELOPMENT$ K . - (3,703) 14,873 (4,003) 31,630 (5,883) 70,831 (1,588) 24,549 (1,599) 24,549 -4,680 . . ---------------------------------------------- l16:765l 171:112 ADJUSTED CAPTURED VALUE.SK - 11,170 27,627 64,948 22,961 22,961 4,680 ------------------------ 1541347 Page3 North Overton Area Financing Plan City of Lubbock, Texas ._ ' I-• Table 2 ~ 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 Financing Plan • The estimated annual incremental funds available.from development and redevelopment in the Zone are listed in the following table. ANNUALINCREMENTALFUNDSAVAILABLE ADJUSTED CAPTURED CUMULATIVE CAPI'URED ANNUAL TAX VALUE, $K VALUE.SK JNCREMENTz SK * ~ -- 11,170 11,170 - 27,627 38,797 97 64,948 103,745 337 22,961 126,706 900 22,%1 149,667 1,100 4,680 154,347 1,299 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 -154,347 1,340 35s893 * Based on I 000,(, Jlfl11icipation and tax rates of: Ci(v-$ 0.57000; Ctnmty-$0.19170; Hospitol-$0.09798; Water Distrid-$0.001130. Page4 North Overton Area Financing Plan City of Lubbock, Texas Ordinance No. 2002-00075 Feasibility Analysis TAX INCREMENT FEASIBILITY ANALYSIS North Overton Area Tax Increment Financing Reinvestment Zone LUBBOCK, TEXAS Prepared for City of Lubbock JUNE2002 Page 1 Index Forward Section 1: Section ll: Section m: Section IV: Section V: Feasibility Analysis INDEX History Current Situation Future Plans Tax Increment Analysis Tables Table 1: North Overton Project Plan Table 2: Private Development Projects Table 3: Annual Captured Value Table 4: Annual Incremental Funds Available Table 5: Annual Incremental Funds Contributed Table 6: Income Without TIF Table 7: BPP Inventory Estimate,$ K Table 8: Income With TIF PAGE 2 3 4 8 9 11 13 13 14 15 16 17 18 19 20 Page2 Feasibility Analysis 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 Page3 Feasibility Analysis I Section 1: 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, Pag<'4 Feasibility Analysis 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. PageS Feasibility Analysis 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 of land; 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 firm 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 RTKL'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. Page6 Feasibility Analysis 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 is experiencing 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 permit 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 Citv must develop creative public/private joint development opportunities and provide public improvements as incentives (or development. Through the 1990's, the situation in North Overton continued to stagnate. Page7 Feasibility Analysis I 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 ofLubbock 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 RTKL. 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. Page8 I Feasibility Analysis I Section m: FUTUR)l: 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 Office Retail Residential Multi-Family SQ. FT. 112,000 277,000 UNITS 928 Single-Family/Garden/Town Homes 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 nearby. Page9 Feasibility Analysis 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. Page 10 Feasibility Analysis Section IV: TAX INCR:Elvi'ENT"'ANXLYSIS 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 Page 11 Feasibility Analysis 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 Fund to pay for the proposed public infrastructure projects. Page 12 Feasibility Analysis I Section V: TABLES Table 1 1 NORTH OVERTON PROJECT PLAN Cost, $ Cost, $ PROJECT BOND ISSUE 1 BOND ISSUE 2-5 PHASE 1-Fust 6 Years Marsha Sharp Frwy Frontage o Improve 8 Intersections+ Frontage o Landscaping & street lighting University Averme Boulevard o Signalize 3 Intersections o Landscape Median o Replace Street Lighting Pioneer Park Improvements Eigbth Street Boulevard o Reconstruction o Landscaping o Street lighting Main Street Reconstruction o Repairs/Replacement o Remove/Palletize Brick o Replace curb & gutter o Intersection Imprm o Street lighting Storm Sewer Landscaping, Sidewalks, Street Furniture, etc. Street lighting Commons, Land Acquisition Commons, Development Street Reconstruction/Resurfacing o Remove/replace curb & gutter o Bituminous Paving on remaining Streets Alley Paving Water Line Replacement Wastewater Line Replacement TOTAL BOND ISSUES (1-5) Administration TOTAL PHASE I TIF COST PHASE ll-Years 7-30 Public Infrastructure TOTAL TIF COST 2002 2003-2()()6 0 0 0 0 443,100 0 0 0 0 144,410 26,250 0 189,000 0 75,500 40,000 918,260 90,000 1,008,260 0 1,008,260 1,000,000 900,000 500,000 690,000 490,000 580,000 576,900 118,000 835,590 473,750 420,000 250,000 1,121,000 1,800,000 0 2.504,500 1,500,000 13,759,740 150,000 13,909,740 7,000,000 20,909,740 TOTAL TIF COST, S 1,000,000 900.000 500,000 690,000 490,000 1,023,100 576,900 118,000 980,000 500,000 420,000 250,000 1,121,000 1,989,000 0 2,580,000 1,540,000 14,678,000 240,000 14,918.000 7,000.000 21.918,000 Pagel3 Page 14 Feasibility Analysis Table 3 ANNUAL CAPTURED VALUE ADJUSTED CAPTURED YEAR DEMOLITIONS$ K NEW DEVELOPMENT$ K VALUE$K 2002 --- 2003 (3,703) 14,873 11,170 2004 (4,003) 31,630 27,627 2005 (5,883) 70,831 64,948 2006 (1,588) 24,549 22,961 2007 (1,599) 24,549 22,961 2008 -4,680 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 (16&765l 171&112 154:347 Page IS Feasibility Analysis Table 4 I ANNUAL INCREMENTAL FUNDS AVAILABLE YEAR 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. $K 11,170 27,627 64,948 22,961 22,961 4,680 * Based on 100"A. ]Hll'liciplltWn and tax rata of: CUMULATIVE CAPTURED VALUE,$K 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 Cl(v-$ 0.57()(Jf}; County-$0.19170; Hospital-$0.09798; Water Distrid--$0.00830 ANNUAL TAX INCREMENT, $K * 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 Pagel6 Feasibility Analysis Table 5 I ANNUAL INCREMENTAL FUNDS CONTRIBUTED ANNUAL TAX INCREMENT S K (By Taxing Jurisdiction) WATER ~ CITY COUNTY HOSPITAL DISTRICT TOTAL 2002 2003 2004 63 21 11 2 97 2005 221 75 38 3 337 2006 591 198 102 9 900 2007 722 243 124 11 1,100 2008 853 287 147 12 1,299 2009 880 296 152 12 1,340 2010 880 296 152 12 1,340 2011 880 296 152 12 1,340 2012 880 296 152 12 1,340 2013 880 296 152 12 1,340 2014 880 296 152 12 1,340 2015 880 296 152 12 1,340 2016 880 296 152 12 1,340 2017 880 296 152 12 1,340 2018 880 296 152 12 1,340 2019 880 296 152 12 1,340 2020 880 296 152 12 1,340 2021 880 296 152 12 1,340 2022 880 296 152 12 1,340 2023 880 296 152 12 1,340 2024 880 296 152 12 1,340 2025 880 296 152 12 1,340 2026 880 296 152 12 1,340 2027 880 296 152 12 1,340 2028 880 296 152 12 1,340 2029 880 296 152 12 1,340 2030 880 296 152 12 1,340 2031 880 296 152 12 1,340 2032 880 296 152 12 1,340 TOTAL 23,570 7.928 4,070 325 351893 Page 17 Feasibility Analysis Table 6 I INCOME WITHOUT TIF ~ 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 REAL PRQPERTY VALUE, SK 24,419 * 24,419 24,419 24,419 24,663 24,910 25,159 25,662 26,175 26,699 27,233 27,778 28,056 28,336 28,620 28,906 29,195 29,487 29,782 30,080 30,381 30,685 30,991 31,301 31,614 31,931 32,250 32,572 32,898 33,227 * EstimtltedFIIttue GrtJWih: BUSINESS PP&INV VALUE, SK 2,580 * 2,580 2,580 2,580 2,606 2,632 2,658 2,711 2,765 2,821 2,877 2,935 2,964 2,994 3,024 3,054 3,085 3,116 3,147 3,178 3,210 3,242 3,274 3,307 3,340 3,374 3,407 3,441 3,476 3,510 2002-2005 fJ'>A. Year 2006-2008 1% Year TQTAL VALUESK 26,999 26,999 26,999 26,999 27,269 27,542 27,817 28,373 28,940 29,520 30,110 30,713 31,020 31,330 31,644 31,960 32,280 32,603 32,929 33,258 33,591 33,927 34,265 34,608 34,954 35,305 35,657 36,013 36,374 36,737 I __!_'!come to Jurisdiction Without TIF **, $ f WATER I Q1I. COUNTY HOSPITAL DISTRICT I 153,984 153,894 153,894 153,894 155,433 156,987 158,557 161,726 164,958 168,264 171,627 175,064 176,814 178,581 180,371 182,172 183,996 185,837 187,695 189,571 191,469 193,384 195,311 197,266 199,238 201,239 203,245 205,274 207,332 209,401 5,396,388 51,757 51,757 51,757 51,757 52,275 52,798 53,325 54,391 55,478 56,590 57,721 58,877 59,465 60,060 60,662 61,267 61,881 62,500 63,125 63,756 64,394 65,038 65,686 66,344 67,007 67,680 68,354 69,037 69,729 70,425 1.814,893 26,454 26,454 26,454 26,454 26,718 26,986 27,255 27,800 28,355 28,924 29,502 30,093 30,393 30,697 31,005 31,314 31,628 31,944 32,264 32,586 32,912 33,242 33,573 33,909 34,248 34,592 34,937 35,286 35,639 35,995 927,613 2,241 2,241 2,241 2,241 2,263 2,286 2,309 2,355 2,402 2,450 2,499 2,549 2,575 2,600 2,626 2,653 2,679 2,706 2,733 2,760 2,788 2,816 2,844 2,872 2,901 2,930 2,960 2,989 3,019 3,049 78,577 20fJ9-2013 2% Year (After MtiT$ha Sharp Freeway frolllage road compktion) 2014-2021 1% Year **Based on tDx rfll# ofi Cizy-S 0.57000; County-$0.19170; Hospita/r-$0.09798; Water District-$0.00830. Page 18 Feasibility Analysis • Table 7 I BPP & INVENTORY ESTIMATE,$ K ~ OFFICE RETAIL MULTI-FAMILY TOTAL !NV BPP _ .. ri .... _ ........... ~~-·----------·- 2002 ---- - 2003 ---20 20 2004 ---35 35 2005 -3,375 675 65 4,115 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 30 8,139 2013 645 6,750 553 30 7,978 2014 516 6,750 553 30 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 Following full occupancy value, BPP depreciated at 20% per year for 5 years. Assume tmnover to new tenants will keep BPP values at that level for remainder of TIF 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 200.41 per year for 4 years. Assume tmnover to new tenants will keep BPP values at that level for remainder of TIF 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 $5,000/year until2012, then will remain constant as furniture and equipment are replaced with new. Page 19 Feasibility Analysis Table 8 l INCOME WITH TIF BASE REAL ADDED I Income to Jurisdiction With TIF **,$ !J.PP&INV BPP&INV CUM VALUE WATER IM6 VALUE1 SK VALUE,SK u CITY CQUNTY HOSPITAL DISTRICT 2002 26,999 -26,999 ---- 2003 26,999 20 27,019 153,894 51,757 26,454 2,241 I 2004 26,999 35 27,034 I 154,008 51,795 26,473 2,243 2005 26,999 4,115 31,114 l 154,094 51,824 26,488 2,244 I 2006 26,999 8,160 35,159 177,350 59,646 30,485 2,582 2007 26,999 8,279 35,278 I 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 l 202,931 68,249 34,883 2,955 l 2012 26,999 8,139 35,138 I 201,467 67,756 34,631 2,934 2013 26,999 7,978 34,977 I 200,287 67,360 34,428 2,916 2014 26,999 7,849 34,848 l 199,369 67,050 34,270 2,903 2015 26,999 7,849 34,848 I 198,634 66,804 34,144 2,892 2016 26,999 7,849 34,848 198,634 66,804 34,144 2,892 I 2017 26,999 7,849 34,848 I 198,634 66,804 34,144 2,892 I 2018 26,999 7,849 34,848 I 198,634 66,804 34,144 2,892 I 2019 26,999 7,849 34,848 I 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 I 198,634 66,804 34,144 2,892 2022 26,999 7,849 34,848 i 198,634 66,804 34,144 2,892 l 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 I 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 l 2030 26,999 7,849 34,848 I 198,634 66,804 34,144 2,892 2031 26,999 7,849 34,848 I 198,634 66,804 34,144 2,892 2032 ---! 198,634 66,804 34,144 2,892 I TOTAL 5~830t162 11960,779 11002~171 84,888 **Based on tmc rates of: City-$ 0.57000; County-$0.19170; Hospiltd---$0.09798; Water Distrid-$0.00830. Yage20 Ordinance No. 2002-oo075 BYLAWS NORTH OVERTON TAX INCREMENT FINANCING REINVESTMENT ZONE Approved by TIF Board: April1 0, 2002 City of Lubbock, Texas ARTICLE I POWERS AND PURPOSE Section 1. Financing Development or Redevelopment in the Zone. In order to implement the purposes for which North Overton Area Tax Increment Financing Reinvestment Zone, City of Lubbock, Texas (the "Zone") was formed, as set forth in Ordinance No. 2002-00029, dated March 14, 2002, creating the Zone, the City of Lubbock, Texas (the "City") may issue obligations to finance all or part of the cost of implementing the "project plan" for the Zone as defined in the Tax Increment Financing Act of the Tax Code, Chapter 311, Vernon's Texas Codes Annotated (the "Act"). Section 2: Books and Records: Approval of Programs and Financial Statements: The Board of Directors using City staff shall keep correct and complete books and records of account and shall also keep minutes of its proceedings and the proceedings of committees having any of the authority of the Board of Directors. All books and records of the Zone may be inspected by any director or his agent or attorney for any proper purpose at any reasonable time; and at any time, the City Council and the Director of Finance of the City will have access to the books and records of the Zone. The City Council must approve all programs and expenditures for the Zone and Annually review any and all financial statements of the Zone. ARTICLE II BOARD OF DIRECTORS Section 1. Powers, Number, and Term of Office. The property and affairs of the Zone shall be managed and controlled by the City Council based on the recommendations of the Board ofDirectors of the Zone ("Board ofDirectors" or "Board"), subject to the restrictions imposed by law, the ordinance creating the Zone, and these Bylaws. It is the intention of the City Council that the Board of Directors shall function only in an advisory or study capacity with respect to the Zone and shall exercise only those powers, advisory in nature, which are either granted to the Board pursuant to the Act or delegated to the Board by the City Council. The Board of Directors shall consist of nine (9) directors: six (6) ofwhom shall be appointed by the City Council of the City; and one (1) appointed by the governing body of Lubbock County North Overton Area TIF Board By Laws (County); one (1) from the State Senator's office and one (1) from the State Representative's office, each from the area in which the Zone resides, provided however, that if a taxing unit (other than the City) waives its right to appoint a member to the Board, as evidenced by written resolution duly adopted by the governing body of such taxing unit, the City may appoint such Board member in its stead. The Board of Directors shall serve two (2) year terms. Any director may be removed from office by the City Council for cause deemed by the City Council as sufficient for their removal in the interest of the public, but only after a public hearing before the City Council on charges publicly made, if demeaned by such Board member within ten (10) days. In the event of a vacancy caused by the resignation, death, or removal for any reason, of a director, the governing body of the respective taxing unit (i. e. City, County), which made such Board appointment, shall be responsible for filling the vacancy. Section 2. Meetings of Directors. The Directors shall hold their meetings within a public building in the City as the Board of Directors may from time to time determine. Section 3: Regular Meetings. Regular Meetings of the Board ofDirectors shall be held at such times and places as shall be designated, from time to time, by resolution of the Board of Directors. All meetings of the Board shall be of a public nature unless pertaining to matters of land purchase, security, personnel, or strictly legal matters. Notice of all regular and special meetings of the Board and any committees thereof shall be posted in accordance with the provisions of Chapter 551, Texas Government Code. There shall be at least one Regular Meeting held each year. Section 4. Emergency Meetings. Emergency Meetings of the Board of Directors shall be held whenever called by the chair, by the secretary, by a majority of the directors then in office or upon advice of or request by the City Council. The secretary shall give notice to each director of each Special Meeting in person, or by mail, courier, facsimile, telephone or e-mail, at least twenty-four (24) hours before the meeting. Notice of all Emergency Meetings shall state the purpose which shall be the only business conducted. Section 5. Quorum. A majority of the directors holding current appointments shall constitute a quorum for the consideration of matters pertaining to the purposes of the Zone. The act of a majority of the directors present at a meeting at which a quorum is in attendance shall constitute the act of the Board of Directors, unless the act of a greater number is required by law. Section 6. Conduct of Business. At the meetings of the Board of Directors, matters pertaining to the purposes of the Zone shall be considered in such order as from time to time the Board of Directors may determine. At all meetings of the Board of Directors, the chair shall preside and in the absence of the chair, the vice chair shall exercise the power of the chair. Page2 North Overton Area TIF Board By Laws The secretary of the Board of Directors shall act as secretary of all meetings of the Board of Directors, but in the absence of the secretary, the presiding officer may appoint any person to act as secretary of the meeting. The secretary of the Board of Directors shall ensure that all records are properly kept. City staff shall provide notice of meetings and prepare meeting agendas. Meeting minutes shall be recorded by the City Secretary of the City of Lubbock. Within five (5) days following each Regular and Emergency Meeting, a copy of the minutes of the meeting shall be available at the office of the City Secretary of the City. Said minutes shall be distributed to Board Members prior to the next scheduled meeting. Section 7. Compensation of Directors. Directors as such shall not receive any salary or compensation for their services, except that they shall be reimbursed for their actual reasonable expenses incurred in the performance of their duties hereunder. Section 8. Attendance. Board members shall make every effort to attend all Regular and Special Meetings of the Board and/or Committees. The City Council may replace a City appointee of the Board or request replacement of an appointee from other taxing jurisdictions for non-attendance at three consecutive meetings. ARTICLE III OFFICERS Section 1. Titles and Term of Office. The officers of the Zone shall consist of a chair, a vice chair, a secretary, and such other officers as the Board of Directors may from time to time elect or appoint. All officers, other than the chair, shall be subject to removal from office, with or without cause, at any time by a vote of a majority of the entire Board of Directors. All officers, except the Chair, shall be elected at the first meeting of the calendar year. A vacancy in the office of any officer, other than the chair, shall be filled by a vote of a majority ofthe directors. Section 2. Powers and Duties of the Chair. The chair shall be the chief executive officer of the Board of Directors and, subject to the approval ofthe City Council, he/she shall be in general charge of the properties and affairs of the Zone and shall preside at all meetings of the Board of Directors. Section 3. Vice Chair. The Vice chair shall be a member of the Board of Directors, shall have such powers and duties as may be assigned to him by the Board of Directors and shall exercise the powers of the chair during that officer's absence or inability to act. Any action taken Page3 North Overton Area TJF Board By Laws by the vice chair in the performance of the duties of the chair shall be conclusive evidence of the absence or inability to act of the chair at the time such action was taken. Section 4. Secretarv. The secretary shall keep the minutes of all meetings of the Board of Directors in books provided for the purpose, he/she shall have charge of such books, records, documents and instruments as the Board of Directors may direct, all of which shall at all reasonable times be open to inspection, and he/she shall in general perform all duties incident to the office of secretary subject to the control ofthe City Council and the Board of Directors. The function of Secretary may be performed by designated City Staff. Section 5. Compensation. Officers as such shall not receive any salary or compensation for their services, except that they shall be reimbursed for their actual reasonable expenses incurred in the performance of their duties hereunder. Section 6. Staff. Staff functions for the Board of Directors may be performed by the City Manager and his designees. ARTICLE IV PROVISIONS REGARDING BYLAWS Section 1. Effective Date. These Bylaws shall become effective only upon the occurrence of the following events: (1) The adoption of these Bylaws by the Board ofDirectors, and (2) The approval of these Bylaws by the City Council. Section 2. Amendments to Bylaws. These Bylaws may be amended by majority vote of the Board of Directors, provided that the Board of Directors files with the City Council a written application requesting that the City Council approve such amendment to the Bylaws, specifYing in such application the amendment or amendments proposed to be made. If the City Council by appropriate resolution finds and determines that it is advisable that the proposed amendment be made, authorizes the same to be made and approves the form of the proposed amendment, the Board of Directors shall proceed to amend the Bylaws. After consultation with the Board of Directors, the Bylaws may also be amended at any time by the City Council by adopting an amendment to the Bylaws by resolution of the City Council and delivering the Bylaws to the secretary of the Board ofDirectors. Section 3. Interpretation of Bylaws. These Bylaws and all the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein. If any word, phrase, clause, sentence, paragraph, section or other part of these Bylaws, or the application thereof to any person or circumstance, shall ever be held to be invalid or unconstitutional by any court of Page4 North Overton Area TJF Board By Laws competent jurisdiction, the remainder of these Bylaws and the application of such word, phrase, clause, sentence, paragraph, section or other part of these Bylaws to any other person or circumstance shall not be affected thereby. ARTICLEV GENERAL PROVISIONS Section 1. Notice and Waiver of Notice. Whenever any notice whatsoever is required to be given under the provision of these Bylaws, said notice shall be deemed to be sufficient if given by depositing the same in a post office box in a sealed postpaid wrapper addressed to the person entitled hereto at his post office address, as it appears on the books of the Zone, and such notice shall be deemed to have been given on the day of such mailing. Attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the express purposes of objecting to the transaction of any business on the grounds that the meeting is not lawfully called or convened. A waiver of notice in writing signed by the person or persons entitled to said notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. Section 2. Resignations. Any director or officer may resign at any time. Such resignation shall be made in writing and shall take effect at the time specified therein, or, if no time be specified, at the time of its receipt by the City Council. The acceptance of a resignation shall not be necessary to make it effective, unless expressly so provided in the resignation. Section 3. Approval or Delegation of Power by the City Council. To the extent that these Bylaws refer to any approval by the City, such approval of delegation shall be evidenced by a certified copy of an ordinance, or resolution (if permissible), duly adopted by the City Council. Page 5 MAP IN FILE SEE ORDINANCE # ,;RO(J2 ,~ Qoo~ 5