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HomeMy WebLinkAboutOrdinance - 2002-O0135 - Approving The Centr Real Business District Tax Increment Reinvestment Zone - 12/12/2002First Reading December 12~ 2002 Item No. 25 Second Reading December 19, 2002 Item No. 12 ORDINANCE NO. 2002-ooBs AN ORDINANCE APPROVING THE CENTRAL BUSINESS DISTRICT TAX INCREMENT FINANCE REINVESTMENT ZONE PROJECT PLAN AND FINANCE PLAN AND THE BY-LA\VS 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 Tae'\. 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, 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 Central Business District Tax Increment Financing Reinvestment Zone, in accordance with the Act, has prepared and adopted a Central Business District Project Plan and a Central Business District Financing Plan, and has also submitted these plans to the City Council for approval; NO\V THEREFORE: BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: CBD TIF Plan Approval Ordinance Page I SECTION 1: THAT the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. SECTION 2: THAT the Bylaws adopted by the Board of Directors of the Central Business District 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 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 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 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 CBD TIF Plan Approval Ordinance Page2 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. b) That the Central Business District 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 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 plan is feasible and conforms to the City of Lubbock Comprehensive Plan. SECTION 4: That 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 are approved. A copy of each plan is attached hereto and incorporated into this Ordinance as if fully set forth herein. CBD TIF Plan Approval Ordinance Page3 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. AND IT IS SO ORDERED PAS SED by the City Council on first reading this 12th day of December, 2002. PASSED by the City Council on second reading this 19th day of December, 2002. ATTEST: APPROVED AS TO CONTENT: Craig F , Managing Director of Planning and Transportation APPROVED AS TO FORM: Linda L. Chamales Supervising Attorney, Office Practice LC:/Cityatt!Linda/TIF.CBD-PLAN ADOPTION ORD November 19,2002 CBD TIF Plan Approval Ordinance Page4 Ordinance No. 2002-Q013~ PROJECT PLAN Central Business District Tax Increment Financing Reinvestment Zone LUBBOCJ(, TEXAS Prepared for City of Lubbock November 2001 "Project Plan Page 1 I PROJECT PLAN The City of Lubbock Central Business District (CBD) has been typically developed over the years with office, retail and governmental agency uses. Like many cities, retail has moved to shopping areas and other areas outside the CBD and office development has stagnated. In an effort to reverse that trend and to stimulate further development downtown, the City in December 1986 established a Tax Increment Financing (TIF) District within the Neighborhood Development Program Area under Texas Urban Renewal Law. This district included a large portion of the CBD and the North and South Overton neighborhoods. Unfortunately, with the real estate market downturn in the late 1980's and conversion of space from private to public use, the existing TIF has a tax value below the TIF 1986 base value and will be terminated. At this time, CBD values appear to have stabilized and have increased slightly over the last two years. To provide further stimulus to development and redevelopment in the CBD, the City plans to establish a new CBD TIF Reinvestment Zone with a different Boundary than the current TIF. City Staff, CenterCorp and representatives of the jurisdictions that levy taxes in the area have developed a list of public infrastructure projects designed to stimulate new development and redevelopment in the CBD. It is expected that the Central Business District Tax Increment Financing Reinvestment Zone planned expenditure of almost $8 Million for public infrastructure improvements will result in future development and redevelopment in the Zone which will increase the taxable value by approximately $87 Million over the Zone's 20-year life. Project Plan Page 2 As set forth in Section 311.011 ofthe Tax Increment Financing Act ofthe Tax Code, the Project Plan for the Central Business District Tax Increment Financing Reinvestment Zone, Lubbock, Texas must and does include the following elements: 1. A map showing existing uses and conditions of real property in the Zone and a map showing proposed improvements to and proposed uses of the property. Following is a map showing uses of real property in the Central Business District Tax Increment Financing Reinvestment Zone and a map indicating the boundary of the potential locations ofproposed public improvements in the zone. 2. Proposed changes of zoning ordinances, the master plan of the municipality, building codes, and other municipal ordinances. No changes of zoning ordinances, building codes, or other municipal ordinances are anticipated at this time. As indicated in the project list, an update of the Downtown Redevelopment Plan is anticipated. 3. A list of estimated non-project costs. Non-project costs within the Zone area are those development costs not paid for by the Zone. These costs will include, but are not limited to, $50 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. 'Project Plan Page 3 Cost of Infrastructure Improvements Planned CBD TIF Reinvestment Zone Lubbock, Texas Rehabilitation/Beautiful Projects 1. Update of the Do\V!ltown 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 11. 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, do\V!ltown core) TOTAL INCENTIVE PROJECTS GRt\ND 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 $ 7,720,000 $ 8,300,000 2,000,000 $ 10.300,000 $ 18,020.000 Project Plan Page4 Ordinance No. 2002-Q0135 Financing Plan Central Business District Tax Increment Financing Reinvestment Zone LUBBOCK, TEXAS Prepared for City of Lubbock November 2001 I FINANCING PLAN The Financing Plan provides information on the projected impact that the Central Business District Tax Increment Financing Reinvestment Zone (Zone) could have on the property described in 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 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; Interest before and during construction and for one year after completion of construction, whether or not capitalized; Finance Plan CBD TIF City of Lubbock Page l The amount of any contributions made by the municipality from general revenue for the implementation ofthe 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. 2. Estimated Project Cost of Zone, including administrative expenses. Project costs are estimated at approximately $18 Million. Specific cost estimates are included in Table 4 ofthe 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. No bonded indebtedness is anticipated at this time. 5. The time when related costs or monetary obligations are to be incurred. Funds will be expended on a "pay-as-you-go" basis. 6. A description of the methods of financing 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 will be financed using tax increment funds received and no new debt is envisioned at this time. The revenue sources will be the real property taxes captured by the Zone, which will account for 100% of Finance Plan CBD TIF City of Lubbock Page 2 revenues used to fund project costs. For the Financial Plan, it is assumed that all taxing jurisdictions will participated at 100% of their incremental taxable value. 7. The current total appraised value of taxable real property in the Zone. The current appraised value of the taxable real property in the Zone is $98 Million using the 2001 values provided by the Lubbock Central Appraisal District. 8. The estimated appraised valued of the improvements in the Zone during each year of existence. Table 1 Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 The estimated appraised value of the improvements in the Zone per year is listed in the following table. Captured Value of Existing & New Development CBDTIF Reinvestment Zone Lubbock, Texas Base Assessed Adjusted Base Value Assessed Value %Increase $M 98 2.0 100 2.0 102 1.5 104 1.5 105 1.5 107 1.0 108 1.0 109 1.2 110 1.4 112 1.6 114 1.8 116 1.8 118 1.8 120 1.8 122 1.8 125 1.5 127 1.5 129 1.5 131 1.5 133 1.5 135 New Development Total Assessed Assessed Value Value $M $M 98 100 3 105 107 108 1 111 112 2 115 4 120 10 132 6 140 4 146 2 150 12 164 2 168 171 2 175 177 2 181 183 185 Finance Plan CBD T!F City of Lubbock Page 3 Table 2 Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 TOTAL The estimated annual incremental funds available from development and redevelopment in the Zone are listed in the following table. Annual Incremental Funds Available CBD TIF Reinvestment Zone Lubbock, Texas Total Assessed Base Assessed Annual Captured Annual Tax Value Value Value Increment $M $M $M $K* 98 98 -- 100 98 2 - 105 98 7 17 107 98 9 61 108 98 10 78 111 98 13 87 112 98 14 113 115 98 17 122 120 98 22 148 132 98 34 191 140 98 42 295 146 98 48 365 150 98 52 417 164 98 66 451 168 98 70 573 171 98 73 608 175 98 77 634 177 98 79 668 181 98 83 686 183 98 85 720 185 98 87 738 755 7,727 *Based on lOOo/o participation and tax rates of: City-$ 0.57000; County-$0.19170; Hospital--$0.09798; and Water District-$0.00830. Finance Plan CBD TIF City of Lubbock Page 4 I Ordinance No. 2002-Q0135 BYLAWS CENTRAL BUSINESS DISTRICT TAX INCREMENT FINANCING REINVESTMENT ZONE Date Approved: March 20, 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 the Central Business District Tax Increment Financing Reinvestment Zone, City of Lubbock, Texas (the "Zone") was formed, as set forth in Ordinance No.2001- 00091, dated December 3, 2001, creating the Zone, the City ofLubbock, 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 ofDirectors shall consist of nine (9) directors: five (5) ofwhom shall be appointed by the City Council of the City; and one (1)) appointed by the governing body of Lubbock County Central Business District TIF Board By Laws (County); one (1) appointed by the Lubbock Independent School District, one (1) appointed by the Lubbock County Hospital District, and one (1) appointed by the High Plains Water Conservation District, 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 (1 0) 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, School District, Hospital District, Water Conservation District), 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 of Directors 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 ofthe 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. Page2 Central Business District TIF Board By Laws 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. 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 of the 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 of the 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 Page3 Central Business District 11F Board By Laws exercise the powers of the chair during that officer's absence or inability to act. Any action taken 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. Secretary. 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 ofDirectors. 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 of Directors, 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 ofDirectors 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 of Directors. 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 Page4 Central Business District TIF Board By Laws any person or circumstance, shall ever be held to be invalid or unconstitutional by any court of 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.shrul be evidenced by a certified copy of an ordinance, or resolution (if permissible), duly adopted by the City Council. Page5