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HomeMy WebLinkAboutResolution - 2002-R0170 - Agreement With High Plains Underground Water Conservation District - 04/25/2002Resolution No. 2002-80170 April 25, 2002 Item No. 71 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 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 , 200/—. WINDY SITTO , MAYOR ATTEST: Reb cca Garza, City Secretary APPROVED AS TO CONTENT: r � Craig Fa c', Director of Planning APPROVED AS TO FORM: Linda L. Chamales, Supervising Attorney/ Office Practice Section LLC:.RES ccdocsl, 2001 Resolution No. 2002-RO170 MCWHORTER, COBB AND JOHNSON, L.L.P. ATTORNEYS AT LAW D. THOMAS JOHNSON JACK P. DRISKILL 1722 BROADWAY R. MICHAEL McCAULEY, JR. D. MURRAY HENSLEY LUBBOCKTEXAS 79401 GWYNN P. KEY, (Special Counsel to the Firm) JOHN MARK STEPHENSDUANE R. RICHARDS K. JONES, LL.M. DULDON AN D. ELDER P. O. BOX 2547 OF COUNSEL ANN ANNMANNING LUBBOCK, TEXAS 79408 DALE H. JOHNSON SABRAJ. SRADER TELEPHONE E-MAIL ADDRESS TELECOPY OWEN W. McWHORTER, JR. TIMOTHY T. PRIDMORE (806) 762-0214 gmclaren@mcjllp.com (806) 762-8014 OWEN W. McWHORTER JAMEY LANEY PHILLIPS (1897-1986) GARY R. McLAREN CHARLES L. COBB (1913-2000) J.R. BLUMROSEN (1925-1996) April 2, 2002 Ms. Linda Chamales, Attorney City of Lubbock P. O. Box 2000 Lubbock, Texas 79457-0001 Re: City of Lubbock and High Plains Underground Water Conservation District Agreement to Participate in the North Overton District Tax Increment Finance Reinvestment Zone Dear Ms. Chamales: Enclosed herein please find the subject Agreement properly executed by the authorized representatives of my client, High Plains Underground Water Conservation District No. 1. Please provide me with a copy of such Agreement once it has been signed off on by the City. Thanking you for your kind assistance in this matter, I am Yours very truly, GRM/j gt enclosure ON, L.L.P. Resolution No. 2002-80170 April 25, 2002 Item No. 71 CITY OF LUBBOCK AND HIGH PLAINS UNDERGROUND WATER CONSERVATION DISTRICT 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 the 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, 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 WATER DISTRICT 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"), to be 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 WATER DISTRICT, in consideration of the terms, conditions, and covenants contained herein, agree as follows: City and Water District 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, to be established by the Lubbock City Council, Ordinance No. 2002-029, on second reading March 14, 2002. e. "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. 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 North Overton Reinvestment Zone that is located in and taxable by the WATER DISTRICT 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 WATER DISTRICT 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 Water District Interlocal NO TIF Agreement Page 2 Section 2. WATER DISTRICT Obligations. The WATER DISTRICT hereby agrees to 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 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 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 North Overton 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 North Overton 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 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 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 North Overton 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 "North Overton Reinvestment Zone" for expenses authorized in the 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 WATER DISTRICT 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 WATER DISTRICT with a final accounting of the funds deposited to and disbursed from the Tax Increment Fund. City and Water District Interlocal NO 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. 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 Finance Plan. The Project Plan and the Finance 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. 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 parry to another, the consent, approval, notice, request, proposal or demand must be in writing to be effective and shall be delivered to the parry 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 WATER DISTRICT, to: High Plains Underground Water Conservation District 2930 Avenue Q 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 NO 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 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 WATER DISTRICT, duly authorized by Order No. approved on 2002. CITY OF LUBBOCK: WINDY SITTO MAYOR ATTEST: Re ecca Garza, City Secretary APP AS T NTENT: Craig F , Director of Planning APPROVED AS TO FORM: HIGH PLAINS UNDERGROUND WATER CONSERVATION DIST CT APPROVED AS TOCONTENT: CLinda Chamales, Supervising Attorney t Office Practice Section W; LLC:lc:\\Cityatt\ Linda - TIF CBD WATER DISTRICT Interlocal City and Water District Interlocal NO TIF Agreement Page 5 � ains Underground District