HomeMy WebLinkAboutOrdinance - 2017-O0050 - Fifth Amended Central Business District TIF Financial And Project Plan - 04/27/2017First Reading
April 13, 2017
Second Reading
April 27, 2017
Item No. 7.2 Item No. 6.1
ORDINANCE NO. 2017-00050
AN ORDINANCE APPROVING THE FIFTH AMENDED CENTRAL
BUSINESS DISTRICT TAX INCREMENT FINANCE REINVESTMENT
ZONE FINANCING PLAN AND PROJECT PLAN AS ADOPTED BY THE OF
THE CENTRAL BUSINESS DISTRICT TAX INCREMENT FINANCING
REINVESTMENT ZONE BOARD OF DIRECTORS.
WHEREAS, the City Council of the City of Lubbock (the "City Council"), in order to
promote the development of the Central Business District of the City of Lubbock,
adopted Ordinance No. 2001-0091 on December 3, 2001, that established the Central
Business District Tax Increment Finance Reinvestment Zone (the "CBD TIF") and
defined the CBD TIF 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 (the "CBD TIF Board"), in accordance with the Act,
prepared a Central Business District Financing Plan (the "Financing Plan") and a
Central Business District Project Plan (the "Project Plan"), both of which were
adopted on December 19, 2002 through Ordinance 2002-00135;
WHEREAS, four amendments to the Financing Plan and the Project Plan have been
approved by the City Council through Ordinances 2004-00132, 2006-00137, 2008-
00100, and 2009-00088; and
WHEREAS, due to increased development and changed circumstances within the
CBD TIF, the CBD TIF Board, at its meeting on March 22, 2017, unanimously
approved a fifth amendment to the Financing Plan and the Project Plan and has
submitted these plans to the City Council for approval; and 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.
SECTION 2: THAT the City Council makes the following findings regarding the
CBD TIF Financing Plan and Project Plan, as adopted by the CBD TIF Board:
a) That the fifth amendment to the Financing Plan includes the following items as
required by the Act:
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 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 fifth amendment to the Project Plan includes the following items as
required by the Act:
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 fifth amendment to the Financing Plan and the Project Plan is feasible and
conforms to the City of Lubbock Comprehensive Plan.
SECTION 3: THAT City Council hereby approves the fifth amendment to the
Financing Plan and the Project Plan, as adopted by the CBD TIF Board. A copy of the
fifth amendment to the Financing Plan and the Project 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.
IT IS SO ORDERED.
Passed by the City Council on first reading on April 13, 2017
Passed by the City Council on second reading on April 27, 2017
"V ---
DANIEL M. POPE, MAYOR
ATTEST:
qRecca Garza. City Secret ry
APPROVED AS TO CONTENT:
091
Cheryl Brock, Executive Director of Budget
APPROVED AS TO FORM:
Ord Fifth Amendment to Financing Plan & Project Plan CBD TIF
March 22, 2017
Financing Plan
(Fifth Amended)
Central Business District
Tax Increment Financing Reinvestment Zone
LUBBOCK, TEXAS
Prepared for
City of Lubbock
Financing Plan
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
illustrated in Appendix A. The Financing Plan also describes how that impact could be utilized
to enhance the area and region through leveraging the resources of each entity that participates in
the project.
Below is a summary of the Financing Plan items required by law:
1. A detailed list describing the estimated project costs of the zone, including
administrative costs.
The total project costs over the life of the zone will be approximately $40.8 million. The
detailed list of projects is included in Appendix B.
2. A statement listing the kind, number, and location of all proposed public works or
public improvements in the zone.
• 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: and
the transfer, sale, and improvement of property within the CBD that supports the
project plan;
• 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 TIF Fifth Amended Finance Plan
Page 1
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.
3. Economic Feasibility Study.
• An economic feasibility study has been conducted and is included as a part of this
Financing Plan as Appendix C.
4. The estimated amount of bonded indebtedness to be incurred.
• The estimated amount of bonded indebtedness to be incurred is as follows:
Principal: $20.0 million
Interest: $10.7 million
5. The time when related costs or monetary obligations are to be incurred.
• Monetary obligations will be incurred with each bond issue; however, it is
expected that new development would occur, which would provide sufficient tax
increment to pay debt coverage for each bond issuance.
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 or bond issues with
payment provided by tax increment funds received. The revenue sources will be
the real property taxes captured by the Zone, which will account for 100% of
revenues used to fund project costs and bonds issued. For the Financing Plan, all
taxing jurisdictions, excluding the school district, have agreed to participate at
100% of their incremental taxable value.
7. The current total appraised value of taxable real property in the Zone.
• The current appraised value, before exemptions, of the taxable real property in the
Zone is approximately $211.5 million using the 2016 values provided by the
Lubbock Central Appraisal District.
CBD TIF Fifth Amended Finance Plan
Page 2
Financing Plan
8. The estimated appraised value 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
CBD TIF Fifth Amended Finance Plan
Page 3
1n the ionowing table.
Table 1
City of Lubbock, TX
Captured Value of Existing & New Development
CBD TIF Reinvestment Zone
New
Base Assessed
Adjusted Base
Abatement Growth in
Development
Total Adjusted
Tax
Value
Assessed Value
Adjustment Assessed Value
Assessed Value
Assessed Value
Year
% Increase
$ millions
$ millions $ millions
$ millions
$ millions
2001
-
$ 105.9
- -
-
105.9
2002
-
107.0
(1.4) -
105.6
2003
-
114.1
(5.6) 4.5
-
113.0
2004
-
113.0
(5.4) 7.4
5.4
120.3
2005
-
120.3
(5.8) 0.3
7.5
122.4
2006
-
122.4
(0.6) 6.9
8.4
137.2
2007
-
137.2
(5.8) 15.7
8.6
155.7
2008
-
155.7
(5.5) 6.2
3.9
160.3
2009
-
160.3
(4.6) 8.0
3.2
166.8
2010
-
166.8
(2.1) 2.4
0.7
167.7
2011
-
167.7
(1.4) 0.0
1.9
168.3
2012
-
168.3
(0.8) 2.2
2.5
172.3
2013
-
172.3
- 3.6
5.3
181.2
2014
-
181.2
- 2.8
6.6
190.6
2015
-
190.6
- 1.1
10.7
202.4
2016
-
202.4
- 0.6
7.3
210.3
2017
2.0
210.3
- 4.2
0.9
215.4
2018
2.0
215.4
- 4.3
1.4
221.1
2019
2.0
221.1
- 4.4
4.6
230.2
2020
2.0
230.2
- 4.6
7.7
242.4
2021
2.0
242.4
- 4.8
0.9
248.2
2022
2.0
248.2
- 5.0
-
253.1
2023
2.0
253.1
- 5.1
-
258.2
2024
2.0
258.2
- 5.2
-
263.3
2025
2.0
263.3
- 5.3
-
268.6
2026
2.0
268.6
- 5.4
-
274.0
2027
2.0
274.0
- 5.5
-
279.5
2028
2.0
279.5
- 5.6
-
285.0
2029
2.0
285.0
- 5.7
-
290.7
2030
2.0
290.7
- 5.8
-
296.6
2031
2.0
296.6
- 5.9
-
302.5
2032
2.0
302.5
- 6.0
-
308.5
2033
2.0
308.5
- 6.2
-
314.7
2034
2.0
314.7
- 6.3
-
321.0
2035
2.0
321.0
- 6.4
-
327.4
2036
2.0
327.4
- 6.5
-
334.0
2037
2.0
334.0
- 6.7
-
340.7
2038
2.0
340.7
- 6.8
-
347.5
2039
2.0
347.5
- 6.9
-
354.4
2040
2.0
354.4
- 7.1
-
361.5
CBD TIF Fifth Amended Finance Plan
Page 3
Financing Plan
• The estimated annual incremental funds available from development and
redevelopment in the Zone are listed in the following table.
Table 2
City of Lubbock, TX
Annual Incremental Funds Available
CBD TIF Reinvestment Zone
bBased on projected tax rates of:
City --$0.53802; County --$0.358158; Hospital --$0.112055; and Water District --$0.00750
9. The duration of the Zone.
The duration of the Zone is 40 years.
CBD TIF Fifth Amended Finance Plan
Page 4
Total Adjusted
Base Assessed
Annual Increment
Annual Tax
Annual Interest
Transfer
Annual
Tax
Value
Value
Value
Increment
Earnings
from
Total Revenue
Year
$ millions
$ millions'
$ millions
$ thousands
$ thousands
ME Lbk Infra
$ thousands
2001
$ 105.9
105.9
2002
105.6
105.9
(0.3)
-
-
-
2003
1130
105.9
7.1
66.0
0.3
66.3
2004
1203
105.9
14.4
78.6
1.4
80.0
2005
122.4
105.9
16.6
155.0
4.7
159.7
2006
137.2
105.9
31.3
277.8
12.3
290.1
2007
155.7
105.9
49.9
424.9
27.6
452.4
2008
160.3
105.9
54.4
469.7
20.4
490.2
2009
166.8
105.9
61.0
530.8
0.8
531.6
2010
167.7
105.9
61.9
544.0
1.7
545.7
2011
168.3
105.9
62.4
554.2
1.6
555.8
2012
172.3
105.9
66.4
627.5
0.1
627.7
2013
181.2
105.9
75.3
727.3
0.9
-
728.2
2014
190.6
105.9
84.7
792.3
3.9
181.1
977.3
2015
202.4
105.9
96.5
9572
5.7
1085
1,071.4
2016
210.3
105.9
104.4
1,031.9
1.9
412
1,075.0 "
2017
215.4
105.9
109.5
1,082.3
9.7
-
1,092.1 "
2018
221.1
105.9
115.2
1,138.7
10.2
1,148.9 "
2019
230.2
105.9
124.3
1,228.2
11.1
1,239.2 "
2020
242.4
105.9
136.5
1,3493
12.1
1,361.4 "
2021
248.2
105.9
142.3
1,4061
12.7
1,418.7 "
2022
253.1
105.9
147.3
1,4551
13.1
1,468.2 "
2023
258.2
105.9
152.3
1,505.1
13.5
1,518.7 "
2024
263.3
105.9
157.5
1,5561
14.0
1,570.1 "
2025
268.6
105.9
162.7
1,608.2
14.5
1,622.7 "
2026
274.0
105.9
168.1
1,661.3
15.0
1,676.2 "
2027
279.5
105.9
173.6
1,7154
15.4
1,730.8 "
2028
285.0
105.9
179.2
1,770.6
15.9
1,786.6 "
2029
290.7
105.9
184.9
1,8270
16.4
1,843.4 "
2030
296.6
105.9
190.7
1,884.4
17.0
1,901.4 "
2031
302.5
105.9
196.6
1,943.0
17.5
1,960.5 "
2032
308.5
105.9
202.7
2,002.8
18.0
2,020.8 "
2033
314.7
105.9
208.9
2,063.8
18.6
2,082.4 "
2034
321.0
105.9
215.2
2,1260
19.1
2,145.1 "
2035
327.4
105.9
221.6
2,1894
19.7
2,209.1 "
2036
334.0
105.9
228.1
2,2541
20.3
2,274.4 "
2037
340.7
105.9
234.8
2,320.1
20.9
2,341.0 "
2038
347.5
105.9
241.6
2,387.5
21.5
2,408.9 "
2039
354.4
105.9
248.6
2,456.1
22.1
2,478.2 "
2040
361.5
105.9
255.7
2,526.2
22.7
2,548.9 "
Total
$ 50,694.1
$ 474.5
$ 330.8
$ 51,499.4
bBased on projected tax rates of:
City --$0.53802; County --$0.358158; Hospital --$0.112055; and Water District --$0.00750
9. The duration of the Zone.
The duration of the Zone is 40 years.
CBD TIF Fifth Amended Finance Plan
Page 4
Appendix A
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CBD TIF Fifth Amended Finance Plan
Appendix A
Appendix B
CBD TIF Project Costs
Rehabilitation/Beautification Projects
Update of the Downtown Redevelopment Plan
Landscaping, lighting and replacement and improvement of sidewalks, curbs and
gutters, and right-of-way, as needed.
Gateway/Entranceway development and improvement
Organizational and Professional Service Costs including planning, architectural, and
environmental studies necessary to implement the plan.
Public Art Projects.
Development costs associated with implementation of the plan.
Development of green space such as parks, plazas, markets, and special event
facilities.
Development of public parking facilities.
Infrastructure and utilities in connection with new construction and renovation
projects. (Public/Private partnerships)
Administrative Costs
TIF Project Cost
Debt Service Interest Expense
Total TIF Project Cost
Project Costs
$ 150,000
7,199,613
3,000,000
4,350,000
500,000
2,470,048
2,000,000
3,000,000
17,171,053
1,000,000
40,840,714
10,658,659
$ 51,499,373
CBD TIF Fifth Amended Finance Plan
Appendix B
Appendix C
TAX INCREMENT
FEASIBILITY
ANALYSIS
Central Business District
Tax Increment Financing Reinvestment Zone
LUBBOCK, TEXAS
Prepared for
City of Lubbock
November 2001
SCHRADER & CLINE, LLC
!SOO Broadway, Suite
Addison, "TX 75001
Feasibility Analysis
Page 1
Appendix C
INDEX
Index
Forward
PAGE
2
Section I: History 4
Section II: Current Situation
Section III: Future Plans 6
Section IV: Tax Increment Analysis
Section V: Tables 10
Feasibility Analysis
Page 2
Appendix C
FOREWORD
Schrader & Cline, LLC was asked to prepare a Feasibility Analysis using tax increment
financing to encourage accelerated development and redevelopment of the Central Business
District (CBD) Tax Increment Finance Reinvestment Zone in the City of Lubbock, Texas. This
area of the City needs public infrastructure projects which will provide a stimulus for new
development and redevelopment of existing facilities.
Section I is an introduction and summarizes the history of the CBD.
Section II reviews the current situation.
Section III details future plans, and
Section IV details the tax increment analysis
The following projections of development and tax revenues are subject to change. As underlying
conditions in the national and regional economy change, the pace and value of new development
and redevelopment projected for the TIF area may shift. Future property tax rates are
particularly difficult to predict given their dependence on changes in the tax base, the mix of
taxes levied and the various jurisdictions' overall fiscal and budgetary policies. Thus, the
projected tax increments are subject to change. The analysis of future tax increment funds is
dependent on a series of projections, assumptions, and other inputs; the report should be
reviewed in totality.
Neither this report nor its conclusions may be referred to or included in any prospectus or
part of any offering made in connection with private syndication of equity, sale of bonds, sale of
securities or sale of participation interests to the public without express written approval.
Schrader & Cline, LLC
Addison, Texas
November 2001
Feasibility Analysis
Page 3
Appendix C
Section I: HISTORY
Lubbock, Texas currently ranks as the 92nd largest city in the United States, the 11`h largest city
in Texas, and the largest city in the west Texas region. The city has a stable economy with
strong agribusiness, manufacturing, wholesale and retail trade, services and government sectors.
Lubbock's central location and access to transportation have also contributed to the city's
development as a regional warehousing and distribution center.
The Central Business District (CBD) developed over the years with the typical downtown uses of
office, retail and governmental agency uses. However. as with many CBD areas during the
1960-1980 time frame, much of the retail relocated to shopping centers and other areas outside
the CBD. In an effort to reverse that trend and to stimulate further development downtown. the
City in December 1986 established a Tax Increment Financing 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, timing could not have been worse. Although a small amount of tax increment
(about $200,000) was generated in the early years, the demise of the real estate market in the late
1980's completely stagnated any new development. In addition, there was a switch of some
major downtown properties from private to public use during the 1990's, which put the tax value
of the TIF significantly below its 1986 base tax value. Although values have increased from the
lowest point, the TIF values are still below the base. Therefore, it seems reasonable to not
extend the 1986 TIF beyond its December 2001 termination date.
Feasibility Analysis
Page 4
Appendix C
Section II: CURRENT SITUATION
At this time, it appears values in the CBD have stabilized and there have been small increases in
value during the last two years (2.3% from 1999-2000 and 2.7% from 2000-2001). The
increased values have been created by a slight increase in overall real property values and some
small increases generated by rehabilitation of several commercial properties,
redevelopment/development in the Depot Entertainment District and the conversion of vacant
office and retail buildings to loft apartments. Based on what has happened in the CBD during
the past two years, it seems the area is poised for development and redevelopment but needs
additional stimulus which could be provided by TIF funds. However, because the taxable value
in the current TIF is still significantly below the base tax value the City plans to terminate it and
establish a new Central Business District Tax Increment Financing Investment Zone with a
different boundary.
Feasibility Analysis
Page 5
Appendix C
Section III: FUTURE PLANS
To provide additional stimulus and promote further development and redevelopment in the CBD.
a list of public infrastructure projects has been developed by City staff and CenterCorp as shown
in Table 4.
These infrastructure projects are designed to:
• Enhance the appearance of the CBD;
• Provide or participate in development of public areas which will draw visitors to
the CBD; and
• Provide funds for public/private partnerships to stimulate new development in the
CBD and, more particularly, along the proposed Marsha Sharp Freeway.
As a result of the stimulus provided by the use of TIF funds during the proposed 20 -year life of
the Reinvestment Zone area, we have projected values will continue to increase over the next
few years, but at a declining rate of increase. This would add about $10 M in value to the area
over the next seven years, through redevelopment and general overall value increases. Based on
the assumption that frontage roads for the new Marsha Sharp Freeway will be complete by 2008,
we have projected that values will begin increasing at a higher rate for a few years, stimulated by
development activity along the Freeway frontage roads, and then the rate of increase will begin
to decline once again.
Feasibility Analysis
Page 6
Appendix C
We have projected that new development in the Reinvestment Zone area will be rather limited
until completion of the Freeway frontage roads. However, once the frontage roads are complete,
we have projected retail, small office and service uses will develop along the frontage roads. In
addition, we have projected completion of a 300 -room hotel in 2010 and a 150,000 square foot,
mid -rise office building in 2014.
Based on our projections, the overall value of the TIF Reinvestment Zone area will increase at an
average of about 3% per year. This increase in value will generate almost $8M in tax increment
funds over the 20 -year life of the zone. In addition to providing tax increment funds to pay for
public infrastructure, based on this analysis the taxing jurisdictions will receive more total funds
with the TIF than without within two years after TIF expiration. (Tables 5 and 6)
Feasibility Analysis
Page 7
Appendix C
Section IV: TAX INCREMENT ANALYSIS
This section documents the detailed analysis and inputs used to generate the tax increment
revenue estimates. Tax increment financing involves:
• Designating an eligible redevelopment area or an expanded redevelopment
area as a tax increment reinvestment zone;
• Soliciting participation of the taxing jurisdictions;
• Setting the assessment base at the level of the most recent assessment, and
• Diverting tax revenues generated by the increase in assessed value to a tax
increment fund for funding public improvements.
Thus. future tax increment revenues depend on four elements:
• The timing and value of new development and redevelopment;
• Appreciation of existing land and improvements;
• The value of any existing improvements demolished to make way for new
development: and
• Future tax rates and the percentage of participation of each taxing jurisdiction.
This analysis will include tax increment above the base from existing development and
redevelopment in the Zone, plus tax increment above the current base from all new development
in the Zone. Table 1 indicates the projected assessed value of existing development and
redevelopment in the Zone, plus the timing and value of new development in the Zone.
Feasibility Analysis
Page 8
Appendix C
Assessment policies in Lubbock County set building assessments at 100% of fair market value,
roughly equal to construction costs for new construction. Assessed values are established as of
January 1 of the tax year. Thus, new development in 2001 goes on the tax rolls for the Tax Year
2002. Taxes generated against values in one tax year are due and collected at the beginning of
the following tax year. Thus, for this analysis, tax increment is available beginning in tax year
2003. Table 2 uses the Total Assessed Value as shown in Table 1 and deducts the Base Value of
$98 million, which generates the Annual Captured Value. Using the tax rates for each of the
taxing jurisdictions as shown in Table 2, the Annual Captured Value will yield the Annual Tax
Increment. Table 3 takes the same Annual Tax Increment and shows the distribution of that
increment by each taxing jurisdiction.
During the life of the CBD TIF Reinvestment Zone, the tax increment fund would collect a total
of $7,727,000. Following a "pay-as-you-go" basis, this would adequately fund the public
infrastructure projects shown as Rehabilitation/Beautification projects in Table 4. In addition,
Table 4 lists Incentive Projects which would be funded if the CBD TIF Reinvestment Zone is
more successful than we have projected.
Finally, Table 5 projects the tax income to all taxing jurisdictions without the CBD TIF
Reinvestment Zone and Table 6 projects the tax income to all taxing jurisdictions with the CBD
TIF Reinvestment Zone. As indicated in these tables, the income to all taxing jurisdictions
during the life of the Zone is almost as much with the Zone as it is without, and within two years
after termination of the zone, income is greater with the Zone than without.
Feasibility Analysis
Page 9
Section V: TABLES
Table 1
Appendix C
Captured Value of Existing & New Development
CBD TIF Reinvestment Zone
Lubbock, Texas
Feasibility Analysis
Page 10
New
Base Assessed
Adjusted Base
Development
Total Assessed
Value
Assessed Value
Assessed Value
Value
Year
% Increase
$ M
$ M
$ M
2001
-
98
-
98
2002
2.0
100
-
100
2003
2.0
102
3
105
2004
1.5
104
-
107
2005
1.5
105
-
108
2006
1.5
107
1
111
2007
1.0
108
-
112
2008
1.0
109
2
115
2009
1.2
110
4
120
2010
1.4
112
10
132
2011
1.6
114
6
140
2012
1.8
116
4
146
2013
1.8
118
2
150
2014
1.8
120
12
164
2015
1.8
122
2
168
2016
1.8
125
-
171
2017
1.5
127
2
175
2018
1.5
129
-
177
2019
1.5
131
2
181
2020
1.5
133
-
183
2021
1.5
135
-
185
Feasibility Analysis
Page 10
Table 2
Appendix C
Annual Incremental Funds Available
CBD TIF Reinvestment Zone
Lubbock, Texas
*Based on 100% participation and tax rates of-
City--$ 0.57000; County -40.19170; Hospital --$0.09798; and Water District -40.00830.
Feasibility Analysis
Page 11
Total Assessed
Base Assessed
Annual
Annual Tax
Value
Value
Captured Value
Increment
Year
$M
$M
$M
$K*
2001
98
98
-
-
2002
100
98
2
-
2003
105
98
7
17
2004
107
98
9
61
2005
108
98
10
78
2006
111
98
13
87
2007
112
98
14
113
2008
115
98
17
122
2009
120
98
22
148
2010
132
98
34
191
2011
140
98
42
295
2012
146
98
48
365
2013
150
98
52
417
2014
164
98
66
451
2015
168
98
70
573
2016
171
98
73
608
2017
175
98
77
634
2018
177
98
79
668
2019
181
98
83
686
2020
183
98
85
720
2021
185
98
87
738
2022
755
TOTAL
7,727
*Based on 100% participation and tax rates of-
City--$ 0.57000; County -40.19170; Hospital --$0.09798; and Water District -40.00830.
Feasibility Analysis
Page 11
Appendix C
Table 3
Annual
Incremented Funds
CBD
TIF Reinvestment Zone
—By Taxing Jurisdiction—
Lubbock, Texas
Annual
Total
Captured
City of
Lubbock Hospital
Water
Annual Tax
Year
Value,
Lubbock,
County, District,
District,
Increment,
$ M
$K
$ K $K
$K
$K
2001
-
2002
2
-
- -
-
-
2003
7
11
4 2
-
17
2004
9
40
13 7
1
61
2005
10
51
17 9
1
78
2006
13
57
19 10
1
87
2007
14
74
25 13
1
113
2008
17
80
27 14
1
122
2009
22
97
33 17
1
148
2010
34
125
42 22
2
191
2011
42
194
65 33
3
295
2012
48
239
81 41
4
365
2013
52
274
92 47
4
417
2014
66
296
100 51
4
451
2015
70
376
127 65
5
573
2016
73
399
134 69
6
608
2017
77
416
140 72
6
634
2018
79
439
148 75
6
668
2019
83
450
152 77
7
686
2020
85
473
159 81
7
720
2021
87
485
163 83
7
738
2022
-
496
167 85
7
755
TOTAL
5,072
1,708 873
74
7,727
Feasibility Analysis
Page 12
Table 4
Appendix C
Cost of Infrastructure Improvements Planned
CBD TIF Reinvestment Zone
Lubbock, Texas
Rehabilitation/Beautiful Proiects
1. Update of the Downtown Redevelopment Plan $ 120,000
2. Landscaping, lighting and replacement and improvement of sidewalks, 500,000
curbs and gutters as needed (Examples: Avenue O to link Civic Center with
Broadway, Buddy Holly to link Depot District with Broadway)
3. Gateway/Entranceway development and improvement 2,000,000
4. Planning for and participation in development (construction or renovation) 250,000
of a Visitor's Center
5. Public Art Projects 100,000 1
6. Participation in landscaping of freeways and interchanges 200,000 1
7. Participation in development of a "Mercado/Public Plaza" and/or "Farmer's 500,000
Market"
8. Participation in development of a rail terminal and related facilities 200,000 1
9. Outdoor Stage in Depot District 150,000 1
10. Public expenses related to development of a major convention -type hotel 2,000,000 1
11. Infrastructure and utilities in connection with new construction and 1,700,000
renovation projects. (Public/Private Partnerships)
TOTAL REHABILITATION/BEAUTIFICATION PROJECTS $ 7,720,000
Incentive Projects
12. Infrastructure and Utilities in connection with new construction and $ 8,300,000
renovation projects. (Public/Private Partnerships)
13. Development of public parking lots and public parking buildings (Depot 2,000,000
District, downtown core)
TOTAL INCENTIVE PROJECTS $ 10,300,000
GRAND TOTAL $ 18,020,000
Feasibility Analysis
Page 13
Table 5
Appendix C
Tax Income to ALL Taxing Jurisdictions
WITHOUT CBD TIF Reinvestment Zone
Lubbock, Texas
Personal
2022 137 62 199 -
2023 - - - 1.73
Subtotal 32.25
2023 139 63 202 -
2024 - - - 1.75
Total 34.00
*Based on 45% of real property value
Feasibility Analysis
Page 14
Real Assessed
Property
Total Assessed
Year
Tax
Assessed Tax
Value
Tax Income
Value $M
Value $M*
$ M
$ M
2001
98
44
142
-
2002
100
45
145
1.23
2003
102
46
148
1.26
2004
104
47
151
1.28
2005
105
47
152
1.31
2006
107
48
155
1.32
2007
108
49
157
1.35
2008
109
49
158
1.36
2009
110
50
160
1.37
2010
112
50
162
1.39
2011
114
51
165
1.41
2012
116
52
168
1.43
2013
118
53
171
1.46
2014
120
54
174
1.48
2015
122
55
177
1.51
2016
125
56
181
1.54
2017
127
57
184
1.57
2018
129
58
187
1.60
2019
131
59
190
1.62
2020
133
60
193
1.65
2021
135
61
196
1.68
2022
-
-
-
1.70
Subtotal
30.52
2022 137 62 199 -
2023 - - - 1.73
Subtotal 32.25
2023 139 63 202 -
2024 - - - 1.75
Total 34.00
*Based on 45% of real property value
Feasibility Analysis
Page 14
Appendix C
Table 6
Tax Income to ALL Taxing Jurisdictions
WITH CBD TIF Reinvestment Zone
Lubbock, Texas
Personal
Real Assessed
Property
Total Assessed
Year
Tax
Assessed Tax
Tax Value
Tax Income
Value $M
Value $M
$ M
$ M
2001
98
44
142
-
2002
98
45
143
1.23
2003
98
47
145
1.24
2004
98
48
146
1.26
2005
98
49
147
1.27
2006
98
50
148
1.28
2007
98
50
148
1.28
2008
98
52
150
1.28
2009
98
54
152
1.30
2010
98
59
157
1.32
2011
98
63
161
1.36
2012
98
66
164
1.40
2013
98
68
166
1.42
2014
98
74
172
1.44
2015
98
76
174
1.49
2016
98
77
175
1.51
2017
98
79
177
1.52
2018
98
80
178
1.54
2019
98
81
179
1.55
2020
98
82
180
1.55
2021
98
83
181
1.56
2022
-
-
-
1.57
Subtotal
29.37
2022
188
85
273
-
2023
-
-
-
2.37
Subtotal
31.74
2023
191
86
277
-
2024
-
-
-
2.40
Total
34.14
Feasibility Analysis
Page 15
PROJECT PLAN
(Fifth Amended)
Central Business District
Tax Increment Financing Reinvestment Zone
LUBBOCK, TEXAS
Prepared for
City of Lubbock
PROJECT PLAN
The City of Lubbock Central Business District (CBD) is predominately made up of 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 December 1986, in an effort to
reverse that trend and to stimulate further development downtown, the City established a Tax
Increment Financing (TIF) District within the Neighborhood Development Program Area under
Texas Urban Renewal Law. This TIF District included a large portion of the CBD and the North
and South Overton neighborhoods. Unfortunately, the real estate market downturn in the late
1980's and the conversion of space from private to public use caused the tax values to fall below
the 1986 base value. Due to the reduced values, the TIF District was terminated.
In 2001, values in the CBD had stabilized and had begun to increase. To provide additional
stimulus to development and redevelopment in the CBD, and to support the transfer, sale, and
improvement of property within the CBD, the City established a new CBD TIF Reinvestment
Zone (Zone) with a different Boundary than the original TIF District. In 2009, the City of
Lubbock extended the life of the zone by 20 years. The estimated revenues in the Zone of $51.5
million are anticipated to be spent on public infrastructure improvements to further development
and redevelopment in the Zone. The current financial model for the Zone estimates that taxable
value will increase approximately $255.7 million over the Zone's 40 -year life.
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 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.
Attached as Exhibit A is a map showing existing and proposed uses of real property in
the Central Business District Tax Increment Financing Reinvestment 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. An update of the Downtown Redevelopment Plan has been
completed.
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, $89.3 million of new
development. The detailed list of estimated non -project costs from 2004 through 2021
are included as Exhibit B.
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 2
CBD TIF Fifth Amended Project Plan
Cost of Infrastructure Improvements Planned
CBD TIF Reinvestment Zone
CBD TIF Project Costs
Rehabilitation/Beautification Projects
Update of the Downtown Redevelopment Plan
Landscaping, lighting and replacement and improvement of sidewalks, curbs and
gutters, and right-of-way, as needed.
Gateway/Entranceway development and improvement
Organizational and Professional Service Costs including planning, architectural, and
environmental studies necessary to implement the plan.
Public Art Projects.
Development costs associated with implementation of the plan.
Development of green space such as parks, plazas, markets, and special event
facilities.
Development of public parking facilities.
Infrastructure and utilities in connection with new construction and renovation
projects. (Public/Private partnerships)
Administrative Costs
TIF Project Cost
Debt Service Interest Expense
Total TIF Project Cost
Project Costs
$ 150,000
7,199,613
3,000,000
4,350,000
500,000
2,470,048
2,000,000
3,000,000
17,171,053
1,000,000
40,840,714
10,658,659
51,499,373
Page 3
CBD TIF Fifth Amended Project Plan
Exhibit A
CBD TIF Existing and
Proposed Land Use
August 2009
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CBD TIF Fifth Amended Project Plan
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