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HomeMy WebLinkAboutResolution - 2002-R0480 - TIF Participation With High Plains Underground Water Conservation District - 11/14/2002Resolution No. 2002—RO480 November 14, 2002 Item No. 25 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an agreement with the High Plains Underground Water Conservation District to participate in the Central Business District Tax Increment Finance Reinvestment Zone. Said Agreement is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 14th day of November , 2002. ATTEST: Rebe ca Garza, City Secretary APP ROV D AS T CONTENT: Craig Farmer, Director of Planning APPROVED AS TO FORM: Linda L. Chamales, Supervising Attorney/ Office Practice Section LLC:.REs ccdocs/CBD TIF Res-wDist Resolution No. 2002-RO480 November 14, 2002 Item No. 25 CITY OF LUBBOCK AND HIGH PLAINS UNDERGROUND WATER CONSERVATION DISTRICT AGREEMENT TO PARTICIPATE IN THE LUBBOCK CENTRAL BUSINESS DISTRICT TAX INCREMENT FINANCE REINVESTMENT ZONE This AGREEMENT is made and entered into by and between the City of Lubbock, (the "CITY"), a municipal corporation, and High Plains Underground Water Conservation District. (the "WATER DISTRICT"), a political subdivision of the State of Texas, pursuant to the authority granted by and in compliance with the provisions of the Tax Increment Financing Act, V.T.C.A., Tax Code, Chapter 311, and in furtherance of the purposes of these parties as provided by law. WITNESSETH: WHEREAS, in accordance with the provisions of the Tax Increment Financing Act, V.T.C.A., Tax Code, Chapter 311, (the "Act") and after due notice to the WATER DISTRICT and other taxing units levying real property taxes in the area, the City Council of the CITY, pursuant to Ordinance No. 2001-0091 (the "Ordinance"), adopted on December 3, 2001, created, established and designated the Lubbock Central Business District Reinvestment Zone ("CBD Reinvestment Zone") under the Act; and WHEREAS, the Act provides that each taxing unit levying taxes on real property in a reinvestment zone is not required to pay into the tax increment fund any of its tax increment produced from property located in the CBD Reinvestment Zone unless such taxing unit enters into an agreement to do so with the governing body of the municipality that created the zone; and WHEREAS, a tax increment agreement under the Act may be entered into any time before or after the zone is created, and such agreement may include any conditions for payment of the tax increment into the fund and must specify the portion of the tax increment to be paid into the Tax Increment Fund and the years for which that tax increment is to be paid into the Tax Increment Fund; NOW, THEREFORE, the CITY and the WATER DISTRICT, in consideration of the terms, conditions, and covenants contained herein, agree as follows: City and Water District Interlocal CBD TIF Agreement Page 1 Section 1. Definitions. a. "Act" means V.T.C.A., Tax Code, Chapter 311, the Tax Increment Financing Act, as amended. b. "Captured Appraised Value" means the total net taxable appraised value of the property located within the TIF District for the year less the Tax Increment Base of the TIF Taxing Units. C. "Project Plan" means the project plan and a reinvestment zone financing plan prepared in accordance with Section 311.011, Texas Tax Code, as approved by the CITY, and the CBD Reinvestment Zone Board of Directors. d. "TIF District" means the Lubbock Central Business District Tax Increment Reinvestment Zone, City of Lubbock, Texas, established by the Lubbock City Council, Ordinance No. 2001-0091, on December 3, 2001. e. "TIF Taxing Units" means those political subdivisions of the State of Texas authorized to impose ad valorem taxes on property located within the CBD Reinvestment Zone. f. "Tax Increment" means, for any given year, the amount of real property taxes levied and collected by the WATER DISTRICT for the year on the Captured Appraised Value of taxable property located in the TIF District. g. "Tax Increment Base" means the total appraised value of all real property located in the CBD Reinvestment Zone that is located in and taxable by the WATER DISTRICT as of January 1, 2001, the year in which the CBD Reinvestment Zone was designated, plus the total appraised value of all real property taxable by the WATER DISTRICT and annexed to the CBD Reinvestment Zone with the consent of the WATER DISTRICT, determined as of January 1 of the year in which the area was annexed to the CBD Reinvestment Zone. h. "Tax Increment Fund" means the fund created by Ordinance 2001-0091 and consisting of all the Tax Increment deposits, all revenues from the sale of tax increment bonds or notes, revenues from the sale of any property acquired as part of the Project Plan and Reinvestment Zone Financing Plan, and other revenues to be used in the development or redevelopment of the CBD Reinvestment Zone. City and Water District Interlocal CBD TIF Agreement Page 2 Section 2. WATER DISTRICT Obligations. The WATER DISTRICT hereby agrees authorize the Central Appraisal District to pay to the CITY for deposit into the Tax Increment Fund, an amount equal to one hundred percent (100%) of the Tax Increment levied against the captured appraised value of the real property taxable by the WATER DISTRICT and located in the CBD Reinvestment Zone until the 20 year Term of this agreement is reached, except the following: a. Any funds which were levied by the WATER DISTRICT but were not collected, b. Any funds equal to tax refunds repaid by the WATER DISTRICT to taxpayers owning real property in the CBD Reinvestment Zone, C. Any funds which represent penalty, interest or attorney's fees on any delinquent tax payments made to the WATER DISTRICT by taxpayers owning real property in the CBD Reinvestment Zone, d. Any taxes uncollected by the WATER DISTRICT due to agriculture or other exemptions. Payment of such amount by the Central Appraisal District on behalf of the WATER DISTRICT will be made within 90 days of date of delinquency for tax payments as prescribed by state law. Any portion of the tax increment that is uncollected by the Central Appraisal District on behalf of the WATER DISTRICT and withheld in accordance with this section but subsequently collected for the WATER DISTRICT shall be paid to CITY within 60 days of receipt. Section 3. CITY and CBD Reinvestment Zone Obligations. a. CITY hereby agrees to place the funds paid by the Central Appraisal District on behalf of the WATER DISTRICT, as determined in Section 311.012 of the Act, into the Tax Increment Fund to be utilized in the "CBD Reinvestment Zone" for expenses authorized in Project Plan or the Act. Money may be disbursed from the fund only to satisfy claims of holders of tax increment bonds or notes if issued for the zone, to pay project costs for the zone, or to make payments pursuant to an agreement made under Section 311.010(b) dedicating revenue from the tax increment fund. b. Following the end of each fiscal year of the municipality, the CITY shall submit to the WATER DISTRICT a report on the status of the zone as described in Section 311.016 of the Act. After all Project Costs have been paid or at the time of the termination of this Agreement, the CITY shall prepare and provide the WATER DISTRICT with a final accounting of the funds deposited to and disbursed from the Tax Increment Fund. City and Water District Interlocal CBD TIF Agreement Page 3 d. Any funds remaining in the Tax Increment Fund following the final accounting by the CITY shall be paid to the Taxing Units in proportion to each taxing unit's share of the total amount of Tax Increment. Section 4. Boundarv. The boundaries of the CBD Reinvestment Zone are and shall be those boundaries described in the Ordinance, or an amendment thereto revising the boundaries duly approved by the CBD Reinvestment Zone Board of Directors and the City Council of the CITY. Section 5. Term. The term of this Agreement shall be for twenty years from the date the Reinvestment Zone was created. However, in the event the requirements of Section 311.013, Texas Tax Code, have not been satisfied, this Agreement will terminate three (3) years from the date the reinvestment zone was created. Section 6. Amendments to Project Plan. The Project Plan may be amended from time to time, in accordance with the Act. Amendments shall be approved by the CBD Reinvestment Zone Board of Directors and the City Council of the CITY. Section 7. Administration. The City Manager or his designees shall administer this agreement. Section 8. Notification. Whenever this Agreement requires or permits any consent, approval, notice, request, proposal, or demand from one party to another, the consent, approval, notice, request, proposal or demand must be in writing to be effective and shall be delivered to the party intended to receive it at the addresses shown below: If intended for the CITY, to: If intended for the WATER DISTRICT, to: City Manager High Plains Underground Water City of Lubbock Conservation District P.O. Box 2000 2930 Avenue Q Lubbock, Texas 79457 Lubbock, Texas 79405 or to such other addresses as the parties may request, in writing, from time to time. Section 9. Agreement Subject to Laws. This Agreement is made subject to the provisions of the Charter and ordinances of CITY, as amended; Texas constitution, codes, and statutes; and all other applicable state and federal laws, regulations and requirements, as amended. Venue shall be in Lubbock County, Texas. Section 10. Complete Agreement. This Agreement embodies the complete understanding of the CITY and the WATER DISTRICT superseding all oral or written previous and contemporary agreements between the parties relating to matters herein. This Agreement may be amended, modified, or supplemented only by an instrument in writing executed by the CITY and the WATER DISTRICT. Any alteration, additions or deletions to City and Water District Interlocal CBD TIF Agreement Page 4 the terms of this Agreement required by changes in federal, state or local law or regulations will be automatically incorporated into this Agreement without written amendment, and shall become effective on the date designated by such law or regulation. EXECUTED this day the 14th day of November , 2002, by the Mayor of the CITY, duly authorized by Resolution No. 2002-80480 approved on November 14 , 2002, and by the WATER DISTRICT, duly authorized by Resolution No. N/A approved on November 12 .2002. CITY OF LUB MAYOR ATTEST: Rebecca Garza, City Secretary APPR20Z AS TO TENT: Craig Farmer, Director of Planning APPROVED AS TO FORM: Linda Chamales, Supervising Attorney Office Practice Section LLC:Ic L:\Cityatt\ Linda — TIF CBD Water District Interlocal HIGH PLAINS UNDERGROUND WATER CONSERVATION DISTRICT: AMES P. MITCHELL, PRESIDENT OARD OF DIRECTORS APPROVED AS TO CONTENT: Conkwright, Manager W City and Water District Interlocal CBD TIF Agreement Page 5 ains Underground District