COUNCIL CHAMBER 140381 February 26, 2014 WHEREAS, the City recognizes the importance of its role in local economic development initiatives and programs; and WHEREAS, the City has established Tax Increment Financing Reinvestment Zone Number Eleven, (Downtown Connection TIF District or District) and established a Board of Directors for the District to promote development or redevelopment in the Downtown Connection area pursuant to Ordinance No. 26020, authorized by the City Council on June 8, 2005, as authorized by the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code, as amended; and WHEREAS, on August 29, 2005, City Council authorized the Project Plan and Reinvestment Zone Financing Plan for the Downtown Connection TIE District by Ordinance No. 26096; and WHEREAS, the Tax Increment Financing Act specifies that the governing body of a city shall submit an annual report on the financial status of the district to the Chief Executive Officer of each taxing unit that levies taxes on real property in a reinvestment zone, and a copy of the report shall be forwarded to the State Comptroller; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS: Section 1. That the FY 2013 Annual Report for Tax Increment Financing Reinvestment Zone Number Eleven, (Downtown Connection TIF District), City of Dallas, Texas, as of September 30, 2013, a copy of which is attached hereto (Exhibit A), is hereby accepted. Section 2. That the City Manager is hereby authorized to submit the FY 2013 Annual Report for Tax Increment Financing Reinvestment Zone Number Eleven, to the Chief Executive Officer of each taxing jurisdiction that levies taxes on real property in the District; and the State Comptroller, as required by state law. Section 3. That this resolution shall take effect immediately from and after its passage in accordance with the provisions of the Charter of the City of Dallas, and it is accordingly so resolved. APPROVED BY CITY COUNCIL FEB 2 6 2014 /2 -2 /2 - (Tht Secetary 140381 Exhibit A Downtown Connection TIF District FY 2013 Annual Report ContinentalApartments (1810 Commerce Street) Photo Source: Forest City B City of Dallas Office of Economic Development 1500 ManIla Street, 2CN• Dallas, Texas 75201 (214) 670-1685 http:l/www.dallas-ecodev.orci/ October 1, 2012 to September 30, 2013 __ 140381 Exhibit A Downtown Connection TIF District FY 2013 Annual Report Map of Reinvestment Zone Number Eleven 1 I C’\ I I I S “ ‘ I I S •V4jj — I I - - I ln--‘na I I ‘-1% ‘ V . I I 1” I I % .4 4 - I S.S I S ‘ _‘; i -. ‘ ‘ ‘ I -. Ff q. 0?, ‘vs k .- %f\ I . K 1I’V < . S . )/A -hi . V --dl- VV1 \ — H’,fn’.UOD V - ‘5 . I ( . -‘ -. .-. S . Vntory . 4 ,. - V 4’ - -‘V .-- ::, :::;‘:: - :JETF/ 9\, — -- . Akard , - We5t End ‘ • -StatIon .-‘Sttion - - 5 - ‘ - : - ...i’- — 5 : “ . --- — . ç . - — . - . • --• .“ . -- .:s • ‘ ‘V- 5, -. a ..-- si .‘\ 1.0 OO - ,\‘ . cT V/In., n nos Legend 0:;,, Lir,’ :ic- “ DART SJue Line — F,enwSy or I Ccvi —.c:ic :— Sn,.: o,wy nnnnccnn DART Crnnr: inn Aclerbi DART Oninge bce LoI Rn-nd J DART Rc U5 T,inSy fldllw,-iy Expren w.,r. ;,c. ,, ocn. n; .5.: cti5: b,c. - Cnn n’ tI.5.5.t. .5.50 2 140381 Exhibit A Downtown Connection TIE District EY 2013 Annual Report Table of Contents Mission Statement 4 District Accomplishments 4 Value and Increment Revenue Summary 9 Development Goals and Objectives 10 Year-End Summary of Meetings 13 Budget and Spending Status 19 M/WBE Participation 21 FY 2014 Work Program 22 District Financials 23 3 140381 Exhibit A Downtown Connection TIE District FY 2013 Annual Report Mission Statement The mission of the Downtown Connection Tax Increment Financing District is to create a fund for public capital improvements in the core of Downtown essential for development of key spaces and buildings as well as focusing on catalyst projects to create a greater density and critical mass of development within the Main Street core area. The Downtown Connection TIF District was initiated by petition, pursuant to Section 311.005 (a)(5), Texas Tax Code through the sponsorship of the Downtown Improvement District and the Uptown Improvement District. The Downtown Connection TIF District took effect on June 8, 2005, per Ordinance No. 26020 and is scheduled to terminate on December 31, 2035 (including collections of the 2035 increment in calendar year 2036 or when the budget of $231.6 million (2006 dollars) has been collected. District Accomplishments Critical amendments to the Zone were approved by City Council during the fiscal year. The Zone’s budget was increased and the Zone’s focus of redevelopment efforts was expanded. 1. The Zone’s total dollar budget was increased from approximately $391,744,162 ($189,807,592 2006 NPV) to approximately $545,726,096 ($231,593,554 2006 N PV) a. An increase of approximately $153,981,934 total dollars ($41,785,962 2006 NPV) 2. Continue the Zone’s focus of redevelopment efforts in the downtown core and work to expand the core area The purpose of these amendments is to: 1. Expand the downtown core and redevelopment momentum outside of the immediate Main Street area; 2. Increase the district’s budget to continue to provide a funding source for redevelopment within the downtown core by redeveloping last remaining vacant buildings; 3. Continue debt service payments on the district’s bonds in the later years of the TIE without using increment needed to fund redevelopment in the district; 4. Strengthen connections between redevelopment occurring in the Main Street district to other destinations downtown; 4 140381 Exhibit A Downtown Connection TI F District FY 2013 Annual Report 5. Support ground floor activation and occupancy that is contiguous by filling vacant gaps at the street level in accordance with the Downtown Dallas 360’s activation strategy; and 6. Provide a source of funding for the next phase of development within the District which is redevelopment of surface parking lots, undeveloped or underdeveloped parcels, and underutilized buildings. Downtown redevelopment momentum continued during FY 2013. Projects were either completed, construction continued or approved during the fiscal year. 500 S. Ervay — Redevelopment of the Butler Brothers’ Building constructed in 1910. The project includes 274 hotel rooms, 238 residential units and 29,400 square feet of retail space. Construction began during the fiscal year. Total project cost is $77.2M. Photo Provided by A/terra International Flora Lofts — Lease of 50 parking spaces in a 215 parking garage to be constructed beneath a 46 unit apartment building. The lease provides parking in the Arts District, benefiting the greater downtown area and public investments made in the Arts District. Total project cost is $24.5M. Continental Building Redevelopment Project — Construction began August 2010 and was completed March of 2013. The project adds 203 residential units and approximately 5,000 square feet of ground floor retail space. Photo Provided by Forest City 5 140381 Exhibit A Downtown Connection TIF District FY 2013 Annual Report Joule Hotel Expansion — Construction of this project began December 2010 and completed December 2013. The project adds 32 hotel rooms inclusive of eight suites and three penthouses, 11,000 square feet of banquet, catering and meeting space, 24,700 square feet of retail space and a new 9,200 square feet building. Tenants for the retail space in the project include Taschen, an international luxury book publisher opened a library bookstore in the hotel’s lobby, TenOverSix and Traffic, two California based boutiques, Espa Spa, a full service day spa, CBD Provisions a new restaurant and Mirth & Refuge, a new subterranean lounge. Photo Provided by Headinglon Companies 6 140381 Exhibit A Downtown Connection TI F District FY 2013 Annual Report Map of Projects within the Downtown Connection TIF District Rosesood Cou ISOO MclOnney Avenue Henover) Downtown Connection TIF District Project Location Map Legend TIF Funded Projects B city of DaIIs Non-TIF Funded Projects Office of Economic Development December 2011 Downtown Conneciton TIF Boundary Source: Economic Develpment DeprtmonIIke Rederclopment Diorsion 7 140381 Exhibit A Downtown Connection TIF District FY 2013 Annual Report Downtown Connection TIF District Projects1 Projects Within TIF District Utilizing TIF Funding Calendar Year Project Location Complete Status Units! SF2 Approx. Value3 TIF Investment4 u 1 Quarter 17 additional hotel Stoneleigh Hotel 2927 Maple 2008 Completed rooms $14,554,860 $2,500,000 1800 Main Street 4th Quarter 366 res. units; Mercantile Block 1808 Main Street 2008 Completed 40,000 sf retail $39,085,000 $58,000,000 Santa Fe Lofts IV (Aloft 4th Quarter 170 hotel rooms; Hotel) 1 033 Young Street 2009 Completed 4,000 sf retail $11,425,000 $4,296,264 Dallas Arts District 1 Quarter garage renovations! Garage 2301 Ross Avenue 2010 Completed updates $6,613,000 $2,000,000 1810 Commerce 1Quarter 199 res. units; Continental Building Street 2013 Completed 5,000sf retail $46,000,000 $18,305,700 Harwood and Wood 1u Quarter Atmos Complex Phase I Streets 2013 Completed 107 res. units $16,100,000 $3,250,000 32 hotel rooms; 4th Joule Hotel Expansion Main and Commerce Quarter Under 24,700sf retail; (Amended) Streets 2013 Construction 9221 sf office $107,222,000 $23,852,953 274 hotel rooms; 3rd Quarter Under 238 res. units; 500 S. Ervay 500S. Ervay 2015 Construction 29,400 sf retail 77,200,000 5,000,000 4 Quarter Under 430,000 sf office; Hall Arts Center 2301 Ross Avenue 2015 construction 30,000sf retail $130,000,000 $5,000,000 1907 Elm Street 4th Quarter Under 258 res. units; PetroCorrigan 1900 Pacific Avenue 2015 Construction 4,400sf retail S44,660,000 $10,300,000 4th Quarter 46 rca.