HomeMy WebLinkAboutOrdinance - 2004-O0132 - Approving 1St Amended Business District Tax Increment Finance Reinvestment Plan - 11/04/2004First 8.eading
November 4, 2004
Item No. 25
Second Reading
November 18, 2004
Item No. 34
ORDINANCE NO. 2004-00132
AN ORDINANCE APPROVING THE FIRST AMENDED CENTRAL
BUSINESS DISTRICT TAX INCREMENT FINANCE REINVESTMENT
ZONE PROJECT PLAN AND FINANCE PLAN AS ADOPTED BY THE
BOARD OF DIRECTORS OF THE CENTRAL BUSINESS DISTRICT TAX
INCREMENT FINANCING REINVESTMENT ZONE.
WHEREAS, the City Council of the City of Lubbock, desiring to promote the
development of the Central Business District of the City of Lubbock, adopted
Ordinance No. 2001-0091, December 3, 2001, establishing the Central Business
District Tax Increment Finance Reinvestment Zone and defining its boundaries in
accordance with the provisions of the Tax Increment Financing Act, V.T.C.A. Tax
Code, Chapter 311 (the "Act"); and
WHEREAS, the Board of Directors of the Central Business District Tax
Increment Financing Reinvestment Zone, in accordance with the Act, prepared and
adopted a Central Business District Project Plan and a Central Business District
Financing Plan, which was approved December 19, 2002 in Ordinance 2002-00135;
and
WHEREAS, due to increased development and changed circumstances, the
Board of Directors of the Central Business Tax Increment Financing Reinvestment
Zone has adopted a First Amended Project Plan and a First Amended Finance Plan
and has submitted these plans to the City Council for approval; NOW THEREFORE:
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
SECTION 1: THAT the facts and recitations contained in the preamble of
this ordinance are hereby found and declared to be true and correct.
CBD TIF First Amended Plan Approval Ordinance
Page I
SECTION 2: THAT the City Council of the City of Lubbock makes the
following findings regarding the Central Business District Tax Increment Financing
Reinvestment Zone Project Plan and the Central Business District Tax Increment
Financing Reinvestment Zone Finance Plan, as adopted by the Board of Directors of
the Central Business District Tax Increment Financing Reinvestment Zone:
a) That the Central Business District Tax Increment Financing Reinvestment Zone
First Amended Finance Plan includes, as required by§ 311.011 of the Act, all of
the following items:
I) 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 was included in the original project plan;
4) the estimated amount of bonded indebtedness to be incurred;
5) the time when related costs or monetary obligations are to be incurred;
6) a description of the methods of financing all estimated project costs and the
expected sources of revenue to finance or pay project costs, including the
percentage of tax increment to be derived from the property taxes of each
taxing unit that levies taxes on real property in the zone;
7) the current total appraised value of taxable real property in the zone;
8) the estimated captured appraised value of the zone during each year of its
existence; and
9) the duration of the zone.
b) That the Central Business District Tax Increment Financing Reinvestment Zone
First Amended Project Plan includes, as required by § 311.011 of the Act, all of
the following items:
I) a map showing existing uses and conditions of real property in the zone
and proposed improvements to and proposed uses of that property;
CBD TIF First Amended Plan Approval Ordinance
Page2
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 First Amended Plan is feasible and conforms to the City of Lubbock
Comprehensive Plan.
SECTION 3: That the Central Business District Tax Increment Financing
Reinvestment Zone First Amended Project Plan and the Central Business District Tax
Increment Financing Reinvestment Zone First Amended Finance Plan, as adopted by
the Board of Directors of the Central Business District Tax Increment Financing
Reinvestment Zone are approved. A copy of each plan is attached hereto and
incorporated into this Ordinance as if fully set forth herein.
SECTION 4: That if any section, paragraph, clause or provision of this
Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or
unenforceability of such section, paragraph, clause or provision shall not affect any of
the remaining provisions of this Ordinance.
CBD TIF First Amended Plan Approval Ordinance
Page3
AND IT IS SO ORDERED
PASSED by the City Council on first reading this 4th day of Novembe:5 2004.
PASSED by the City Council on second reading this 18th day of November, 2004.
ATTEST:
!<~--<-<4 ,~
Rebecca Garza, City ~a
Craig armer, Managing Director of
Planning and Transportation
APPROVED AS TO FORM:
~---c c:;Y c~:7~ ----
Linda L. Chamales
Senior Attorney, Office Practice
LC:/Cityatt/Linda/TrF.CBD-FIRST AMENDED PLAN ADOPTION ORD
October 21, 2004
CBD TIF First Amended Plan Approval Ordinance
Page4 ·
Ordinance No. 2004-00132
PROJECT PLAN
(First Amended)
Central Business District
Tax Increment Financing Reinvestment Zone
LUBBOCK, TEXAS
Prepared for
City of Lubbock
October 2004
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 I 980'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 TIP Reinvestment Zone with a different Boundary than the current
TIP. 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 $8.4 Million for public
infrastructure improvements will result in future development and redevelopment in the Zone
which will increase the taxable value by approximately $106 Million over the Zone's 20-year
life.
Page 2
CBD First Amended Project Plan
City of Lubbock
As set forth in Section 311.011 of the Tax Increment Financing Act of the Tax Code, the Project
Plan for the Central Business District Tax Increment Financing Reinvestment Zone, Lubbock,
Texas must 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 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.
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, $47 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 3
CBD First Amended Project Plan
City of Lubbock
Cost of Infrastructure Improvements Planned
CBD TIF Reinvestment Zone
Rehabilitation/Beautification Proiects
1. Update of the Downtown Redevelopment Plan
2. Landscaping, lighting and replacement and improvement of sidewalks,
curbs and gutters as needed {Examples: A venue O 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 major convention-type
hotel.
l l. Infrastructure and utilities in connection with new construction and
renovation projects. (Public/Private partnerships)
TOTAL REHABILIATION/BEAUTIFICATION PROJECTS
Incentive Projects
12. Infrastructure and utilities in connection with new construction and
renovation projects. (Public/Private Partnerships)
13. Development of public parking lots and public parking buildings (Depot
District, downtown core)
TOTAL INCENTIVE PROJECTS
GRAND TOTAL
Project Cost
$150,000
$670,000
$2,000,000
$300,000
$187,000
$300,000
$600,000
$300,000
$150,000
$2,000,000
$1,700,000
$8,357,000
$8,300,000
$2,000,000
$10,300,000
$18,657,000
Page 4
CBD First Amended Project Plan
City of Lubbock
Ordinance No. 2004--00132
Central Business District
Tax Increment Financing Reinvestment Zone
LUBBOCK, TEXAS
Prepared for
City of Lubbock
October 2004
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;
CBD First Amended Finance Plan
City of Lubbock
Page I
Financing Plan
• The amount of any contributions made by the municipality from general
revenue for the implementation of the project plan;
• Imputed administrative costs, including reasonable charges for the time
spent by employees of the municipality in connection with the
implementation of a project plan;
• The cost of operating the Zone and project facilities; and
• Payments made at the discretion of the governing body of the municipality
that the municipality finds necessary or convenient to the creation of the
Zone or to the implementation of the project plans for the Zone.
2. Estimated Project Cost of Zone, including administrative expenses.
• Project costs are estimated at approximately $18.67 Million. Specific cost
estimates are included in amended Project.
3. Economic Feasibility Study.
• An economic feasibility study was completed and was included in the
originally approved Finance 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
CBD First Amended Finance Plan
City of Lubbock
Page 2
Financing Plan
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
approximately $116.9 Million using the 2004 values provided by the
Lubbock Central Appraisai District.
8. The estimated appraised valued of the improvements in the Zone during
each year of existence.
• The estimated appraised value of the improvements in the Zone per year is
listed in the following table.
• The estimated annual incremental funds available from development
and redevelopment in the Zone are listed in the following table.
CBD First Amended Finance Plan
City of Lubbock
Page 3
Financing Plan
Table 1
Captured Value of Existing & New Development
Base Assessed
Value
Year o/o Increase
2001
2002
2003
2004 1.5
2005 1.5
2006 1.5
2007 1.0
2008 1.0
2009 1.2
2010 1.4
2011 1.6
2012 1.8
2013 1.8
2014 1.8
2015 1.8
2016 1.8
2017 1.5
2018 1.5
2019 1.5
2020 1.5
2021 1.5
CBD TIF Reinvestment Zone
Lubbock, Texas
New
Adjusted Base Development
Assessed Value Assessed Value
$M $M
101 0
109 0
116 0
118 0
119 0
121 1
122 0
124 2
125 4
127 IO
129 6
131 4
134 2
136 12
138 2
141 0
143 2
145 0
147 2
149 0
152 0
Total Assessed
Value
$M
10]
109
116
118
119
122
123
127
132
144
153
159
164
179
185
188
193
196
201
204
207
CBD First Amended Finance Plan
City of Lubbock
Page 4
Financing Plan
Table2
Annual Incremental Funds Available
CBD TIF Reinvestment Zone
Lubbock, Texas
Total Assessed Base Assessed Annual Captured Annual Tax
Value Value Value Increment
Year SM $M SM SK*
2001 101 101
2002 109 101 7
2003 116 101 14 56
2004 118 101 16 120
2005 119 101 18 135
2006 122 101 21 149
2007 123 101 22 173
2008 127 IOI 25 183
2009 132 101 31 210
2010 144 101 43 256
2011 153 101 51 356
2012 159 101 58 426
2013 164 101 63 482
2014 179 101 78 523
2015 185 101 83 649
2016 188 101 87 693
2017 193 101 92 721
2018 196 101 94 761
2019 201 101 99 785
2020 204 101 102 826
2021 207 101 105 851
TOTAL $ 8,357
*Based on 100% participation and projected tax rates of:
City--$0.45970; County--$0.25587; Hospital--$0. l 0742; and Water District--$0.00830
CBD First Amended Finance Plan
City of Lubbock
Page 5