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HomeMy WebLinkAboutResolution - 2002-R0168 - Agreement With Lubbock County To Participate In TIF - 04/25/2002Resolution No. 2002-RO168 April 25, 2002 Item No. 69 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 Lubbock County to participate in the North Overton 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 25th day of April , 2002. WINDY SIT _, MAYOR ATTEST: ecretary APPROVED AS TO CONTENT: • - Direitor • ' - APPROVED AS TO FORM: Office Practice Section LLC:.RES ccdocs/NO TIF Res-Lubb Co. Resolution No. 2002-RO168 CITY OF LUBBOCK AND LUBBOCK COUNTY AGREEMENT TO PARTICIPATE IN THE NORTH OVERTON 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 Lubbock County, (the "COUNTY"), 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, upon receipt of a petition requesting creation of a tax increment financing district from the owners of more than 50 percent of the appraised value of the area, 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 COUNTY and other taxing units levying real property taxes in the area, the City Council of the CITY, pursuant to Ordinance No. 2002-029 (the "Ordinance"), adopted on March 14, 2002, created, established and designated the North Overton District Tax Increment Finance Reinvestment Zone ("North Overton 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 North Overton 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 COUNTY, in consideration of the terms, conditions, and covenants contained herein, agree as follows: City and County Interlocal NO 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 North Overton Reinvestment Zone Board of Directors. d. "TIF District" means the North Overton Tax Increment Reinvestment Zone, City of Lubbock, Texas, established by the Lubbock City Council, Ordinance No. 2002-029, on March 14, 2002. "TIF Taxing Units" means those political subdivisions of the State of Texas authorized to impose ad valorem taxes on property located within the North Overton Reinvestment Zone. £ "Tax Increment" means, for any given year, the amount of real property taxes levied and collected by the COUNTY 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 North Overton Reinvestment Zone that is located in and taxable by the COUNTY as of January 1, 2002, the year in which the North Overton Reinvestment Zone was designated, plus the total appraised value of all real property taxable by the COUNTY and annexed to the North Overton Reinvestment Zone, determined as of January 1 of the year in which the area was annexed to the North Overton Reinvestment Zone. h. "Tax Increment Fund" means the fund created by Ordinance 2002-029 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 North Overton Reinvestment Zone. City and County Interlocal NO TIF Agreement Page 2 Section 2. COUNTY Obli atg ions. The COUNTY hereby agrees to authorize the Lubbock 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 COUNTY and located in the North Overton Reinvestment Zone until the 30 -year Term of this agreement is reached, except the following: a. Any funds which were levied by the COUNTY but were not collected, b. Any funds equal to tax refunds repaid by the COUNTY to taxpayers owning real property in the North Overton Reinvestment Zone, C. Any funds which represent penalty, interest or attorney's fees on any delinquent tax payments made to the COUNTY by taxpayers owning real property in the North Overton Reinvestment Zone, d. Any taxes uncollected by the COUNTY due to agriculture or other exemptions. Payment of such amount by the Central Appraisal District on behalf of the COUNTY will be made within 90 days of the 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 COUNTY and withheld in accordance with this section but subsequently collected for the COUNTY shall be paid to CITY within 60 days of receipt. Section 3. CITY and North Overton Reinvestment Zone Obligations. a. CITY hereby agrees to place the funds paid by the Central Appraisal District on behalf of the COUNTY, as determined in Section 311.012 of the Act, into the Tax Increment Fund to be utilized in the "North Overton 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. Within ninety days following the end of each fiscal year of the municipality, the CITY shall submit to the COUNTY a report on the status of the zone as described in Section 311.016 of the Act. C. After all Project Costs have been paid or at the time of the termination of this Agreement, the CITY shall prepare and provide the COUNTY with a final accounting of the funds deposited to and disbursed from the Tax Increment Fund. 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. City and County Interlocal NO TIF Agreement Page 3 Section 4. Boundary. The boundaries of the North Overton Reinvestment Zone are and shall be those boundaries described in the Ordinance, or an amendment thereto revising the boundaries duly approved by the North Overton Reinvestment Zone Board of Directors and the City Council of the CITY. Section 5. Term. The term of this Agreement shall be for thirty 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 and Financial Plan, The Project Plan and the Financial Plan may be amended from time to time, in accordance with the Act. Amendments shall be approved by the North Overton Reinvestment Zone Board of Directors and the City Council of the CITY. Section 7. Responsibilily for Negligent Acts. The CITY and the COUNTY shall each be responsible for the sole negligent acts of their officers, agents, employees or separate contractors. In the event of joint and concurrent negligence of both the CITY and the COUNTY, responsibility, if any, shall be apportioned comparatively in accordance with the laws of the State of Texas, without, however, waiving any government immunity available to the CITY and the COUNTY under Texas law and without waiving any defenses of the parties under Texas law. Section 8. Administration. The City Manager or his designees shall administer this agreement. Section 9. 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: City Manager City of Lubbock P.O. Box 2000 Lubbock, Texas 79457 If intended for the COUNTY, to: County Judge Lubbock County P.O. Box 10536 Lubbock, Texas 79408 - 3536 or to such other addresses as the parties may request, in writing, from time to time. Section 10. 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. City and County Interlocal NO TIF Agreement Page 4 Section 11. Complete Agreement. This Agreement embodies the complete understanding of the CITY and the COUNTY 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 COUNTY. Any alteration, additions or deletions to 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 25th day of April , 2002, by the Mayor of the CITY, duly authorized by Resolution No. 2002—R approved on April 25 , 2002, and by the COUNTY through its County Judge, duly authorized by Court Order approved on April 8, 2002. CITY OF LUBBOCK: LUBBOCK COUNTY: WINDY 4SIe,MAYOR TOM HEAD, COUNTY JUDGE ATTEST: ATTEST: Re ecca Garza, City Secretary County Cler APPROVED AS TO CONTENT: Crai—gTirmer, Director lanning APPROVED AS TO FORM: APPROVED AS TO FORM: Linda Chamales, Supervising Attorney II.J. " eni" Hemmeline, Civil Chief Office Practice Section Lubbock County Criminal District Attorney's Office LLC:lc:\\Cityatt\ Linda — TIF CBD County Interlocal City and County Interlocal NO TIF Agreement Page 5