Agenda August 23, 2021 at 11:00AM Council Briefing Room THIRD FLOOR Arlington City Hall 101 W
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MEETING OF THE BOARD OF DIRECTORS OF THE CITY OF ARLINGTON TAX INCREMENT REINVESTMENT ZONE NUMBER FIVE (“Entertainment District TIRZ”) Agenda August 23, 2021 AT 11:00AM Council Briefing Room THIRD FLOOR Arlington City Hall 101 W. Abram St. Arlington, Texas I. Call to Order II. Approval of Minutes from the June 22, 2021 Meeting. III. Items for Action a. Consideration of a resolution approving an Amended Project Plan and Financing Plan for Tax Increment Reinvestment Zone Number Five, City of Arlington, Texas – Entertainment District IV. Executive Session Discussion of matters permitted by the following sections of V.T.C.A., Government Code, Chapter 551: a. Section 551.071, CONSULTATION WITH ATTORNEY b. Section 551.087, DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS V. Requests for Future Agenda Items VI. Consideration of a Date for Next Meeting VII. Adjourn MINUTES REGULAR MEETING TIRZ #5 Board June 22, 2021 2:00PM The TIRZ #5 Board of Arlington, Texas, convened in open session at 2:08 p.m., in the Council Briefing Room at Arlington City Hall, 101 West Abram, Arlington, Texas, notice of said meeting being posted as prescribed by Chapter 551, V.T.C.A., Government Code, with the following members present, to wit: Members Present Devan Allen, Tarrant County Commissioner Linda Dipert Susan Alanis, TCCD J.R. Labbe, JPS Health Network Kevin McGlaun Ignacio Nunez, City Council Raul Gonzalez, City Council Helen Moise, City Council Jeff Williams, Mayor Members Absent Others Present Trey Yelverton, City Manager Jim Parajon, City Deputy Manager Bruce Payne, Economic Development Brittany Sotelo, Economic Development Molly Shortall, City Attorney’s Office Lisa McMillan, Tarrant County Maegan South, Tarrant County David Petit, David Petit Economic Development Natalie Moore, David Petit Economic Development Ethan Klos, City of Arlington Alex Agnor, City of Arlington Erica Yingling, EDC I. Call to Order Mayor Jeff Williams called the meeting to order at 2:09 p.m. and stated that the purpose of the meeting was to conduct the following items of business: II. Approval of Minutes Approval of minutes from the June 2, 2021 meeting. Devan Allen moved to approve the minutes from the June 2, 2021 meeting. J.R. Labbe seconded the motion. The motion carried (Ayes:9, Nays: 0). III. Items for Action Consideration of a resolution approving an Amended Project Plan and Financing Plan for Tax Increment Reinvestment Zone Number Five, City of Arlington, Texas – Entertainment District. Trey Yelverton, City Manager, presented a brief introduction of the resolution and stated there are no project element scoping changes to the project and financing plan. The amendment includes additional private sector investment not originally included in the plan and will be considered in the development assumptions and discount rates within the original projections. Natalie Moore with David Petit Economic Development, LLC presented an overview of the Amended Project and Financing Plan. The TIRZ was created in 2006 and originally set to expire in 2036. In May 2019, the City extended the term to 2049. In December 2019, the term was extended again to 2052 and the City’s participation was increased. Mrs. Moore and David Petit projected when the new TIRZ development would hit the property tax rolls and what the taxable value would look like in terms of generating taxable revenue for the TIRZ. The future development within TIRZ #5 is expected to be a combination of commercial uses including retail, office, hotel, as well as residential development. The County participation level will remain at 70% through 2052 or until the contribution cap is met. The TIRZ revenue projections is $617 million over the term of the TIRZ. From the $617 million, the proposed project cost list includes water, sanitary and sewer, parking improvements, street improvements, public facilities, economic development grants and administrative costs. The County participation will be capped and require a separate interlocal agreement with the Commissioners Court at a later date. Commissioner Devan Allen shared a summary of the County and Hospital District Participation projections with the Board of Directors. Trey Yelverton noted discrepancies in the projections and stated the differences would be worked out with Tarrant County staff. Mayor Williams talked about the success of the TIRZ, and he anticipates people living in the “District” in the near future. Helen Moise motioned to approve the resolution. Devan Allen seconded the motion. The motion carried (Ayes: 9, Nays: 0) V. Executive Session Discussion of matters permitted by Chapter 551 of V.T.C.A. Government Code: Section 551.071, CONSULTATION WITH ATTORNEY Section 551.087, DELIBERATIONS REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS Not held VI. Comments from Citizens None VII. Requests for Future Agenda Items None VIII. Consideration of a Date for Next Meeting N/A IX. Adjourn There being no further business, the meeting was adjourned at 2:38 p.m. NOTE: Taped recordings and minutes of all Board meetings are a matter of public record and are kept on file in the City Manager's Office, 101 W. Abram Street, Arlington, Texas. Any committee member or interested party has the right to review these tapes and minutes at the City Manager's Office. TIRZ #5 Staff Report Tax Increment Reinvestment Zone Number Five –Amended Project Plan and Financing Plan TIRZ #5 Board Meeting Date: 8-23-2021 Documents Being Considered: Resolution RECOMMENDATION Approve a resolution approving an Amended Project Plan and Financing Plan for Tax Increment Reinvestment Zone Number Five, City of Arlington, Texas- Entertainment District. PRIOR BOARD OR COUNCIL ACTION On, December 19, 2006, the City Council considered and passed Ordinance No. 06-117 designating the TIRZ. On May 29, 2007, the Board of Directors of this TIRZ adopted a Project Plan Financing Plan for the zone and submitted the plan to the City Council for approval. On June 5, 2007, City Council passed on second reading Ordinance No. 07-044 approving the Project Plan and Financing Plan for the TIRZ. On October 30, 2018, City Council approved Minute Order No. 10302018-002 authorizing execution of a professional services contract with David Pettit Economic Development, LLC for consulting services to update the Project Plan and Financing Plan for Tax Increment Reinvestment Zone Number Five, City of Arlington, Texas – Entertainment District (“the TIRZ” or “zone”). On May 3, 2019, the TIRZ Board of Directors was briefed and voted to approve an Amended Project Plan and Financing Plan for the TIRZ. On May 21, 2019, City Council passed on second reading Ordinance No. 19-027, extending the term of the TIRZ until 2049. On May 21, 2019, City Council passed on second reading Ordinance No. 19-028, approving an Amended Project Plan and Financing Plan for the TIRZ. On December 17, 2019, the Tax Increment Reinvestment Zone Number Five Board of Directors passed Resolution No. 19-03 approving an Amended Project Plan and Financing Plan of the TIRZ. On December 17, 2019, City Council approved second reading of Ordinance No. 19-066 approving an Amended Project Plan and Financing Plan for Tax Increment Reinvestment Zone Number Five. On January 14, 2020, City Council approved second reading of Ordinance No. 20-002 approving the Amended Project Plan and Financing Plan for Tax Increment Reinvestment Zone Number Five. On June 22, 2021, the TIRZ Board approved Resolution No. 21-03 approving an Amended Project Plan and Financing Plan for Tax Increment Reinvestment Zone Number Five – Entertainment District, City of Arlington, Texas to reflect changes in the development projections. Page 2 of 2 ANALYSIS The proposed Amended Project Plan and Finance Plan reflects the following participation by the taxing entities: Tarrant County 70% until December 31, 2052 or the total amount contributed by Tarrant County, Tarrant County College District and Tarrant County Hospital District equals $111,202,453, whichever comes first; Tarrant County Hospital District 50% until 2031; Tarrant County College District 50% until 2049; City of Arlington 100% until 2052. The TIRZ funding is for anticipated projects within the Entertainment District including: water, sanitary sewer, and stormwater facilities; parking improvements; street and intersection improvements; open space, parks & recreation facilities and improvements; public facilities; economic development grants; and administrative costs. FINANCIAL IMPACT The Amended Project Plan and Financing Plan anticipates $617,734,067 in incremental real property tax generated within the TIRZ that will be fund the following proposed project costs: Proposed Project Costs Water, Sanitary Sewer, & Storm Water Facilities & $15,443,352 2.5% Improvements Parking Improvements $61,773,407 10.0% Street and Intersection Improvements $15,443,352 2.5% Open Space, Park and Recreation Facilities and Improvements $30,886,703 5.0% Public Facilities $5,792,187 0.9% Economic Development Grants $482,217,726 78.1% Administrative Costs $6,177,341 1.0% TOTAL $617,734,067 100% ADDITIONAL INFORMATION Attached: Resolution. Amended Project and Finance Plan. Under separate cover: None. Available in the City Secretary’s Office: None. STAFF CONTACT(S) Bruce C. Payne, CEcD, AICP Economic Development Director 817-459-6114 [email protected] Tax Increment Reinvestment Zone Number Five, City of Arlington, Texas — Entertainment District Resolution No. TIRZ5 21- A resolution approving an Amended Project Plan and Financing Plan for Tax Increment Reinvestment