The URL can be used to link to this page

Home My WebLink About2011-129sAlegal\our documents\ordinances\11\tif finance feasibilty plan ord.doc ORDINANCE NO. 2011-129 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING THE FINANCE AND FEASIBILITY PLANS FOR THE TAX INCREMENT REINVESTMENT ZONE NUMBER 1 (DOWNTOWN TIF); AND DECLARING AN EFFECTIVE DATE. WHEREAS, on the 7th day of December, 2010, the City Council of Denton, Texas, (the "City") established the Tax Increment Finance Zone Number One (Downtown TIF) (the "Zone") as authorized by Chapter 311 of the Texas Code (the "Act"); and WHEREAS, as authorized by section 311.010 of the Act, on March 25, 2011, the Board of Directors of the Zone voted to approve the Finance and Feasibility Plans, which are attached hereto as Exhibit "A" and recommended the Finance and Feasibility Plans be approved by the City Council; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council of the City of Denton, Texas, hereby approves said Finance and Feasibility Plans for the Downtown TIF, which are attached and made a part by reference herein. SECTION 2. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the �o� day of , 2011. /2 ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: 0- - WA I Al A APP VED A TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: FINANCE PLAN — DENTON TIF NO. 1 FINANCE PLAN December 2010 Tax Increment Financing Reinvestment Zone No. 1 City of Denton, Texas SCHRADER & CLINE, LLC George R. Schrader Larry D. Cline 4800 Broadway, Ste A Addison, TX 75001 972-661-1973 schcli(&.swbell.net FINANCE PLAN — DENTON TIF NO. 1 The Financing Plan provides information on the projected monetary impact that the formation of the Tax Increment Financing Reinvestment Zone (TIF) could have on the property described in Finance Plan Exhibit: A and shown in Finance Plan Exhibit: B. It will also describe how that impact can 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. The proposed public improvements in the TIF may include: • Capital costs, including the actual costs of the constriction of public works, public improvements, new buildings, strictures, and fixtures; and the actual costs of the acquisition of land and the clearing and grading of land; • 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 advise 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 TIF, and the cost of implementing the project plan for the TIF; • Interest before and during constriction and for one year after completion of constriction, whether or not capitalized; • 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 TIF 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 TIF or to the implementation of the project plans for the TIF. 2 FINANCE PLAN — DENTON TIF NO. 1 The specific capital improvement projects anticipated to be undertaken in the Denton TIF No. 1, are included in Finance Plan Exhibit. C. 2. Estimated Project Cost of TIF, including administrative expenses. • Project costs are estimated at approximately $24.8 million dollars. Specific cost estimates are included in Finance Plan Exhibit: C. 3. Economic Feasibility Study. • An economic feasibility analysis has been completed and is included as Finance Plan Exhibit: D. 4. The estimated amount of bonded indebtedness to be incurred. • If initial project costs are not advanced by a Developer, the City of Denton may consider issuing bonds when tax increment funds exceed the amount necessary to support debt service. 5. The time when related costs or monetary obligations are to be incurred. • Please refer to Finance Plan Exhibit: C for details regarding the type of improvement costs anticipated. The timing will be monitored by the TIF Board to insure adequate TIF funds are available. 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 TIF. • Project costs will be financed through loans advanced by developers or by the use of tax increment funds received on a pay-as-you-go basis. No new debt is envisioned at this time, but bonds may be issued at a later date when adequate tax increment has been created to support debt service. The revenue sources will be the real property taxes captured by the TIF, which will account for 100% of revenues used to fund project costs or bond debt service. For the Financial Plan, the City will participate at varied tax rates for thirty (30) years. 7. The current total appraised value of taxable real property in the TIF. • The current appraised base value of the taxable real property in the TIF using the 2010 certified values provided by the Appraisal District is $80.2 million. 8. The estimated appraised value of the improvements in the TIF during each year of its existence. • The estimated appraised value of the improvements in the TIF per year is listed in the following FINANCE PLAN TABLE 1. FINANCE PLAN - DENTON TIF NO. 1 TABLE 1 Assessed Real Property Value Including Anticipated New Development Years 2010-2039 YEAR TOTAL ASSESSED VALUE, $M 2010 80.2 2011 81.6 2012 95.5 2013 100.2 2014 115.1 2015 118.9 2016 137.E 2017 145.5 2018 149.3 2019 162.2 2020 168.7 2021 177.1 2022 191.6 2023 200.2 2024 209.8 2025 223.9 2026 234.1 2027 244.3 2028 259.6 2029 266.9 2030 277.8 2031 2 83. 7 2032 294.6 2033 300.E 2034 3 11. 7 2035 318.3 2036 327.9 2037 334.E 2038 344.4 2039 351.2 4 FINANCE PLAN - DENTON TIF NO. 1 The estimated annual incremental funds available from future development in the TIF are listed in the following table. TABLE 2 Annual Incremental Funds Provided for TIF No. 1 Years 2010-2040 Year .ASSESSED VALUE $1\1 BASE .ASSESSED VALUE $1\1 ANNUAL CAPTURED VALUE $1\1 TIF FT TND, $I� 2010 80.2 80.2 -- 2011 81.6 80.2 1.4 2012 95.5 80.2 15.3 10 2013 100.2 80.2 20.0 106 2014 115.1 80.2 34.9 138 2015 1189 80.2 38.7 241 2016 137.6 80.2 57.4 254 2017 145.5 80.2 65.3 376 2018 149.3 80.2 69.1 428 2019 162.2 80.2 82.0 453 2020 168.7 80.2 88.5 537 2021 177.1 80.2 96.9 549 2022 191.6 80.2 111.4 602 2023 200.2 80.2 120.0 692 2024 209.8 80.2 129.6 745 2025 223.9 80.2 143.7 805 2026 234.1 80.2 153.9 892 2027 244.3 80.2 164.1 955 2028 259.6 80.2 179.4 1,019 2029 266.9 80.2 186.7 1,114 2030 277.8 80.2 197.6 1,159 2031 283.7 80.2 203.5 1,159 2032 294.6 80.2 214.4 1,193 2033 300.6 80.2 220.4 1,257 2034 311.7 80.2 231.5 1,292 2035 318.3 80.2 238.1 1,357 2036 3279 80.2 247.7 1,396 2037 334.6 80.2 254.4 1,452 2038 344.4 80.2 264.2 1,492 2039 351.2 80.2 271.0 1,549 2040 -- -- -- 1,589 TOTAL 351.2 80.2 271.0 24,811 2010 TIF CONTRIBUTION T.A1 RATE $100 V.ALU.ATION Tax Rate $100 Valuation MARS 1 - 5 MARS 6 - 10 MARS 11 - 20 MARS 21 - 30 Citv of Denton 0.68975 0.68975 0.6552625 0.6207750 0.5862875 9. The duration of the TIF: The TIF was created in 2010. It is proposed that the TIF exist for thirty (30) years with termination of the TIF set as 2039 or the date when all project costs are paid and any debt is retired, whichever comes first. FINANCE PLAN — DENTON TIF NO. 1 EXHIBIT A Boundary Description Beginning at the southwest corner of the ROW intersection of Carroll Blvd. and Sycamore, the POINT OF BEGINNING; THENCE, north along the west ROW of Carroll Blvd. to the northwest corner of the ROW intersection of Carroll Blvd. and W. Parkway Street; THENCE, east along the north ROW of W. Parkway Street to the northeast corner of the ROW intersection of W. Parkway Street and Locust; THENCE, south along the east ROW of Locust to the north ROW of McKinney; THENCE, east along the north ROW of McKinney to a point directly north of the southeast corner of the ROW intersection of McKinney and N. Bradshaw Street; THENCE, south across McKinney and continuing south along the east ROW of N. Bradshaw Street continuing directly south across E. Hickory Street to the south ROW of E. Hickory Street; THENCE, west along the south ROW of E. Hickory Street to the northeast corner of a tract in the Fred Hill Addition, Block A, Lot 1; THENCE, south and east following the property line of a tract in the Fred Hill Addition, Block A, Lot 1 to the northwest corner of a 1.406 acre tract, A1184A H. Cisco, Tract 14; THENCE, south along the west property line of a 1.406 acre tract, A1184A H. Cisco, Tract 14 to its intersection with the north property line of a 1.694 acre tract Al 184A H. Cisco, Tract 15; THENCE, west and south along the north and west property line of a 1.694 acre tract A1184A H. Cisco, Tract 15 to the northwest corner of a 0.16 acre tract, A1184A H. Cisco, Tract 20; THENCE, south along the west property line of a 0.16 acre tract, A1184A H. Cisco, Tract 20 to the north ROW of Sycamore; THENCE, directly south across Sycamore to the south ROW of Sycamore; THENCE, west along the south ROW of Sycamore to the northwest corner of the Oakwood Cemetery; THENCE, south along the west property line of the Oakwood Cemetery to the north ROW of Prairie; THENCE, directly south across Prairie to the south ROW of Prairie; THENCE, west along the south ROW of Prairie to the southwest corner of the ROW intersection of Prairie and Elm; 6 FINANCE PLAN — DENTON TIF NO. 1 Boundary Description THENCE, north along the west ROW of Elm to the south ROW of Sycamore; THENCE, west along the south ROW of Sycamore to the southwest corner of the ROW intersection of Sycamore and Carroll Blvd. and the POINT OF BEGINNING, and containing a total area of approximately 225.73 acres. 7 FINANCE PLAN — DENTON TIF NO. 1 Property Boundary Map EXHIBIT B Legend ' TIF Boundary Centerline Streets perty Description Acreage w/or w/o Agr use Cable Company Duplex Exempt Gas Company Multifamily Phone Company Real and Commercial Single Family Townhome Vacant Commercial Lots April 16 2010 Miles This map is a graphic representation prepared by the City of Denton and Is Intended for use only as a reference. Data depicted 0 0.05 0.1 0.2 0.3 0.4 is not guaranteed for accuracy and maybe subject to revision at any time without notification. A Registered Surveyor for the State of Texas was not consulted. For Survey level accuracy, supervision and certification of the produced data by a Registered Professional Land Surveyor for the State of Texas would need to be performed 3 EXHIBIT C PROJECT ESTIMATED COST, $M Parking / Transportation 8.0 Complete Streets 7.9 Support for Downtown Projects 4.9 Utility / Drainage Improvements 4.0 TOTAL 24.8 Project Definitions Parking/Transportation: Parking includes, but is not limited to, parking garages; surface parking; parking lighting; and parking signage and wayfinding. This project category was designed to provide adequate public facilities for transportation and to foster Transit Oriented Development (TOD) that will occur as a result of the planned transit station that will link Denton with passenger rail service to the City of Carrollton, where riders can transfer to the Dallas Area Rapid Transit (DART) system into the Dallas/ Fort Worth metroplex. The goal is to create compact, walkable, pedestrian -centered developments to enhance and act as a catalyst to spur additional development and redevelopment in the district. Complete Streets: are "multi -functional, pedestrian -oriented, aesthetically -pleasing, and safe and inviting for residents and visitors. Redeveloping the existing downtown street network into complete streets will create a pleasing public realm, which in turn supports and encourages a wide variety of new development and investment' according to the Downtown Implementation Plan. Elements of complete streets include the building to building improvements which may encompass: sidewalks, shared travel lanes (e.g. bus and bicycle), parallel and angled parking, pedestrian crosswalks, pedestrian and emergency bulb (American with Disabilities Act (ADA) accessibility), awnings, street improvements, planters, pedestrian street furniture, bike racks and pedestrian lighting. Downtown Projects: may include grants, loans and services for public and private development. Eligible TIF project costs are not limited to public uses and may also include projects that involve: historic preservation, demolition, environmental remediation and economic development grants. Chapter 380 of the Local Government Code grants municipalities in Texas the authority to offer grants and loans of public funds to stimulate economic development. The chapter also includes a provision for the use of City employees, facilities and services. An example of a City service may include additional public safety personnel to serve the increased population created by the transit station and the surrounding transit oriented development. Solid FINANCE PLAN — DENTON TIF NO. 1 EXHIBIT D Project Plan waste and recycling services tailored to serve the downtown area is another example of a public service. Utility Drainage: The downtown TIF district has an aging infrastructure and a number of properties that are situated in the floodplain making proper utility drainage an important component of the project plan. Utility drainage encompasses the physical provisions to accommodate and regulate stormwater runoff to preclude excessive erosion and sedimentation and to control and regulate the rate of flow. Facilities/systems can include natural features and conduits, channels, ditches, swales, pipes, detention devices or other devices designed or intended to carry, direct, detain or otherwise control stormwater," according the Denton Development Code. Projects may include one or more categories that may be leveraged as an incentive for development in the TIF district. An example of such a project, that would include both the parking/transportation and the downtown project categories, is a public private partnership for the constriction of a parking garage and mixed use development that includes a public investment for additional parking for the public. 10 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis FEASIBILITY ANALYSIS (EXHIBIT D OF THE FINANCE PLAN) December 2010 Tax Increment Financing Reinvestment Zone No. 1 City of Denton, Texas SCHRADER & CLINE, LLC George R. Schrader Larry D. Cline 4800 Broadway, Ste A Addison, TX 75001 972-661-1973 schcli c,swbell.net FINANCE PLAN: EXHIBIT D -- Feasibility Analysis INDEX Page Index 1 Forward 2 Section I: HISTORY 3 Section II: CURRENT CONDITION / STATE 4 Section III: TAX INCREMENT ANALYSIS 6 Section IV: TABLES 11 TABLE I -- General Value Increase, $M 12 TABLE 2 -- Catalyst Project Value Increase, $M 13 TABLE 3 -- Other Development Redevelopment Value Increase, $M 14 TABLE 4 -- Cumulative Total Value Increase, $M 15 TABLE 5 -- City Contribution to TIE, W 16 TABLE 6 -- City BPP Value Increase, W 17 TABLE 7 -- Total Income to Citv, W 18 Section V: EXHIBITS 19 EXHIBIT I -- Catalyst Project Overview 20 EXHIBIT II --Area A 21 EXHIBIT III --Area B 22 EXHIBIT IV -- Area C 23 EXHIBIT V -- Area D 24 EXHIBIT VI -- Area E 25 I FINANCE PLAN: EXHIBIT D -- Feasibility Analysis FOR WARD Schrader & Cline, LLC was asked to prepare a Feasibility Analysis using tax increment financing to encourage accelerated development and redevelopment for Tax Increment Financing Reinvestment Zone (TIF) No. 1 in the City of Denton, Texas. The areas of the City within the boundary of the TIF need public infrastructure projects that will provide a stimulus for new development. Section I summarizes the history of Denton. Section II is a brief discussion of the current condition/state. Section III details the tax increment analysis. Section IV contains Tables. Section V contains Exhibits. The following projections of development, redevelopment 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. As a result, 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. 2 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis SECTIONI. HISTORY Denton, the county seat of Denton County, is located on IH 35, less than forty miles north of Dallas and Fort Worth. Because of its proximity, Denton has become closely associated with the Dallas - Fort Worth metropolitan area. The City was founded in 1857 in order to become the county seat, because it was located near the center of the County. Although established in 1857, and with a courthouse built on the north side of the square, it was not until 1866 that Denton was incorporated. In its early years, Denton grew slowly, but that changed with completion of the Texas and Pacific Railway and the Missouri, Kansas and Texas Railway through Denton in 1881. With only north and south rail connections, however, the town did not develop as a manufacturing and wholesale center. The next spur to Denton's growth came in 1890 with the opening of North Texas Normal College (now the University of North Texas) and in 1903 with the opening of the Girls Industrial College (now Texas Woman's University). With these developments as catalysts, the City grew from a population of 1,194 in 1880 to 2,558 in 1890 and subsequently, over time, to a population of 26,844 in 1960 and to 48,063 in 1980. Proximity to Dallas and Fort Worth, with good interstate highway connections, played a major role in this growth. Steady and at times rapid growth of enrollment at the two universities was important also. Additionally, after 1974 the City added many new residents as a result of the opening of Dallas - Fort Worth International Airport, which is closer to Denton than to many parts of Dallas and Fort Worth. Many airline employees and executives who traveled for major companies took up residence in Denton. The City of Denton has also benefitted from the continued rapid growth of the metropolitan area and as this growth has moved northward, the City has grown in population from 66,270 in 1990 to 80,537 in 2000 to a currently estimated 122,830, according to the U.S. Census Bureau. FINANCE PLAN: EXHIBIT D -- Feasibility Analysis SECTION IT CURRENT CONDI TION I STATE While Denton has grown to a population in excess of 100,000, the Denton downtown has not shared in the growth. One of the primary reasons for the lack of growth in the downtown area is the condition of the infrastructure. Many of the water and sewer lines serving downtown are 50 years old or older and are undersized to support new and more dense development and redevelopment. Drainage is poor. Many streets have fallen in need of repair or reconstruction, with unsafe sidewalks which do not meet ADA requirements. There also is a lack of parking to serve a higher level of development. The City of Denton has the potential, the need and the desire to undergo a successful revitalization of its downtown. To begin the effort, the City approved a Downtown Masterplan by Fregonese Calthorpe Associates and TIP Strategies in May/June 2003. This was followed by a Downtown Redevelopment Implementation Plan done by Leland Consulting Group and RTKL in 2005. The Leland / RTKL plan suggested five catalyst projects which would -- • Address underserved market niches • Provide direction for targeting and leveraging public investment • Advance market -tested vision over near -term and long-term • Create a physically and economically sustainable plan As one of the potential implementation tools for this plan, Leland/RTKL recommended creation of a Tax Increment Financing (TIF) Reinvestment Zone to fund public improvements which would provide assistance and stimulus for private redevelopment and new development. To further define and guide downtown public infrastructure improvements that would help stimulate private development and be funded by a TIF, the City of Denton asked Jacobs to prepare a Downtown Implementation Plan. This plan, presented to the community and adopted by the Denton City Council in August 2010, focused on parking, complete streets, solid waste, a form base code and the planned transit oriented development. 4 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis Based on the Leland/RTKL recommendation, and following the Downtown Implementation Plan recommendations, the City of Denton is proposing creation of a TIF Reinvestment Zone for the downtown area. The "defined area" of approximately 225.73 acres was developed by city staff along with the Downtown Task Force and the Economic Development Partnership Board. New private development and redevelopment expected to occur as a result of public improvements funded by the TIF will increase downtown property values and tax income as well as bolster business personal property value and its related tax income for all taxing jurisdictions. TIF has been used in many other cities and is a proven method to stimulate private development and redevelopment growth sooner, rather than later, and in many cases will stimulate growth in value which might never occur without public improvements funded by the TIF. 5 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis SECTION III: 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 as a Tax Increment Financing Reinvestment Zone; ■ Soliciting participation of other taxing jurisdictions; ■ Setting the assessment base at the level of the most recent assessment; and ■ Placing tax revenues generated by the increase in assessed value in a tax increment fund for funding public improvements. Thus, future tax increment revenues depend on four elements: ■ The timing and added value of new development; ■ Appreciation of existing land and improvements; ■ The loss of value from any existing improvements demolished to make way for new development; and ■ Future tax rates and the percentage of participation of each taxing jurisdiction. Assessment policies typically set building assessments at 100 percent of fair market value, which are generally comparable to constriction costs for new constriction. Assessed values are established as of January 1 of the tax year. Thus, development in 2010 goes on the tax rolls for the Tax Year 2011. In this analysis, to be conservative, no increase in value on redevelopment or new development after completion has been included. In addition, after the initial five years, only a portion of the taxes from increases in real property values for the City of Denton are directed to the TIF Fund. Taxes from the remaining portion on real property values and 100% of all taxes from increases in business personal property values will flow to the City. All taxes from increases in real property and business personal property values will flow to the other taxing jurisdictions. Sales tax income generated from both existing retail and new retail will continue to flow to the City of Denton. The total year 2010 taxable value of the property within the TIF boundary is estimated to be $80.2 million. 6 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis For the purposes of this tax increment analysis, the initial tax base for the Tax Increment Fund is assumed to be $80.2 million. Taxes on the amount of base tax value will continue to flow to all taxing jurisdictions during the 30-year life of the TIF. The increase in value as a result of development and redevelopment within the TIF boundary is expected to be created in three different categories: 1. the general increase in values over time through normal Appraisal District revaluations and overall inflation; 2. the new values created by completion of the catalyst projects identified in the Downtown Redevelopment Implementation Plan; and 3. other general development and redevelopment expected to occur within the TIF boundary. Each of these will be discussed in more detail in the following sections. General Increase General value increases are based on the City of Denton forecast through 2014. The average increase through 2014 is 2.2% per year. To be somewhat conservative, beyond 2014 an average annual increase of 2% per year was used. This annual increase still generated an increase in value within the TIF from $80.2 million to $143.7 million, an increase of $63.5 million (see attached Table 1). Catalyst Projects As mentioned previously, the city of Denton commissioned the team of Leland Consulting Group and RTKL Associates, Inc. to provide a Downtown Redevelopment Implementation Plan. This team evaluated five potential catalyst projects (see Exhibit 1) which would-- • Address underserved market niches in Denton, • Promote density and increase in "rooftops", • Provide direction for targeting and leveraging public investment, • Advance market -tested vision over near- and long-term, and • Create a physically and economically sustainable plan. These catalyst projects would focus on-- 7 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis • Strengthening the core, • Transit, • Infill development, • Connecting the Civic Center to downtown, and • Gateways into downtown. For this analysis, the project values developed by the team for each catalyst project except catalyst project A were used. Project A value was developed based on more recent input from City Staff. Each project is projected to develop over the time periods shown below. The location of each project is shown in Exhibits 11, III, IV, V, and VI, and a summary is shown below. Area Description Value, $M Development Time Period A Mixed -use Residential/Retail/Transit 55 2012-2028 B Mixed -use Residential/Retail 14 2017-2029 C Residential Infill 16 2020-2034 D Mixed -use Office/Residential 27 2022-2038 E Residential Infill 13 2017-2027 The value created over the life of the TIF by these five catalyst projects is shown in attached Table 2. Other Development/Redevelopment New development and redevelopment value increases during the past few years within the downtown area have averaged about $1.7 million per year. With the stimulus provided by the catalyst projects and with the potential aid of TIF funds, this analysis assumed that a higher level of development and redevelopment within the TIF are would occur as shown below. 3 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis Development Annual Value Time Period Increase, $M 2010 2011 3.0 2012-2014 1.5 2015-2019 2.0 2020-2024 2.5 2025-2029 3.0 2030-2034 3.5 2035-2039 4.0 The value created over the life of the TIF by general development/redevelopment is shown in attached Table 3. The forecast of increased value created within the TIF boundary during the next 30 years from these three categories is shown in Table 4. Income to the TIF Fund based on the values shown in attached Table 4 and the City of Denton tax rate assumptions shown below is detailed in attached Table 5. Jurisdiction Years 2010 Tax Rate % of $/$100 Value Tax Rate City of Denton 1-5 0.6897500 100 6-10 0.6552625 95 11-20 0.6207750 90 21-30 0.5862875 85 Attached Table 5 also shows income which flows to the general fund of the City from the remaining tax rate not applied to the TIF. Business Personal Property tax income will also be generated from increased values within the TIF. Business Personal Property & Inventory (BPP) values for 2009 in the TIF area was 39.1% of real property values. For this analysis, a conservative forecast of BPP tax income to the City in the TIF District is based on BPP values being 40% of real property values initially, declining 9 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis annually to 30% by 2021 and remaining at 30% thereafter using 100% of the tax rate. This income from BPP is shown in attached Table 6. Attached Table 7 shows a forecast of total income to the City during the 30 year life of the TIF. This income is generated from the non-TIF portion of the real property tax rate and BPP income, both from new values generated within the TIF and also from real property and BPP base values. A summary of income to the TIF and the City General Fund over the 30-year life of the TIF is shown below. Jurisdiction TIF Fund, $K CITY Income, $K City of Denton 24,811 3 5,615 The public infrastructure projects planned to stimulate the higher values created by the TIF are shown in Project Plan Exhibit D. 10 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis SECTION I V.• TABLES 11 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis TABLE 1 CITY OF DENTON TAX INCREMENT FINANCING REINVESTMENT ZONE NO. I GENERAL VALUE INCREASE, $M YEAR VALUE BASE VALUE VALUE INCREASE 2010 80.2 80.2 - 2011 78.6 80.2 (1.6) 2012 81.0 80.2 0.8 2013 84.2 80.2 4.0 2014 87.6 80.2 7.4 2015 89.4 80.2 9.2 2016 91.1 80.2 10.9 2017 93.0 80.2 12.8 2018 94.8 80.2 14.6 2019 96.7 80.2 16.5 2020 98.7 80.2 18.5 2021 100.6 80.2 20.4 2022 102.6 80.2 22.4 2023 104.7 80.2 24.5 2024 106.8 80.2 26.6 2025 108.9 80.2 28.7 2026 111.1 80.2 30.9 2027 113.3 80.2 33.1 2028 115.6 80.2 35.4 2029 117.9 80.2 3 7. 7 2030 120.3 80.2 40.1 2031 122.7 80.2 42.5 2032 125.1 80.2 44.9 2033 127.6 80.2 47.4 2034 130.2 80.2 50.0 2035 132.8 80.2 52.6 2036 135.4 80.2 55.2 2037 138.1 80.2 57.9 2038 140.9 80.2 60.7 2039 143.7 80.2 63.5 TOTAL 143.7 80.2 63.5 *Increases based on City of Denton forecast through 2014. Beyond 2014 assumed average of 2% / year increase. TABLE 2 12 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis CITY OF DENTON TAX INCREMENT FINANCING REINVESTMENT ZONE NO. I CATALYST PROJECT VALUE INCREASE, $M YEAR A B C D E TOTAL CUM.TOTAL 2010 - - - - - - - 2011 - - - - - - - 2012 10.0 - - - - 10.0 10.0 2013 - - - - - - 10.0 2014 10.0 - - - - 10.0 20.0 2015 - - - - - - 20.0 2016 15.0 - - - - 15.0 3 5. 0 2017 - 2.0 - - 2.0 4.0 39.0 2018 - - - - - - 39.0 2019 5.0 2.0 - - 2.0 9.0 48.0 2020 - - 2.0 - - 2.0 50.0 2021 - 2.0 - - 2.0 4.0 54.0 2022 5.0 - 2.0 3.0 - 10.0 64.0 2023 - 2.0 - - 2.0 4.0 68.0 2024 - - 2.0 3.0 - 5.0 73.0 2025 5.0 2.0 - - 2.0 9.0 82.0 2026 - - 2.0 3.0 - 5.0 87.0 2027 - 2.0 - - 3.0 5.0 92.0 2028 5.0 - 2.0 3.0 - 10.0 102.0 2029 - 2.0 - - - 2.0 104.0 2030 - - 2.0 3.0 - 5.0 109.0 2031 - - - - - - 109.0 2032 - - 2.0 3.0 - 5.0 114.0 2033 - - - - - - 114.0 2034 - - 2.0 3.0 - 5.0 119.0 2035 - - - - - - 119.0 2036 - - - 3.0 - 3.0 122.0 2037 - - - - - - 122.0 2038 - - - 3.0 - 3.0 125.0 2039 - - - - - - 125.0 TOTAL 55.0 14.0 16.0 27.0 13.0 125.0 125.0 13 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis TABLE 3 CITY OF DENTON TAX INCREMENT FINANCING REINVESTMENT ZONE NO. 1 OTHER DEVELOPMENT/REDEVELOPMENT VALUE INCREASE, $M YEAR VALUE CUM. VALUE 2010 - - 2011 3.0 3.0 2012 1.5 4.5 2013 1.5 6.0 2014 1.5 7.5 2015 2.0 9.5 2016 2.0 11.5 2017 2.0 13.5 2018 2.0 115 2019 2.0 17.5 2020 2.5 20.0 2021 2.5 22.5 2022 2.5 25.0 2023 2.5 27.5 2024 2.5 30.0 2025 3.0 33.0 2026 3.0 36.0 2027 3.0 39.0 2028 3.0 42.0 2029 3.0 45.0 2030 3.5 48.5 2031 3.5 52.0 2032 3.5 515 2033 3.5 510 2034 3.5 62.5 2035 4.0 66.5 2036 4.0 70.5 2037 4.0 74.5 2038 4.0 78.5 2039 4.0 815 TOTAL 82.5 82.5 14 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis TABLE 4 CITY OF DENTON TAX INCREMENT FINANCING REINVESTMENT ZONE NO. I CUMULATIVE TOTAL VALUE INCREASE, $M YEAR GENERAL CATALYST OTHER TOTAL 2010 - - - - 2011 (1.6) - 3.0 1.4 2012 0.8 10.0 4.5 15.3 2013 4.0 10.0 6.0 20.0 2014 7.4 20.0 7.5 34.9 2015 9.2 20.0 9.5 38.7 2016 10.9 35.0 11.5 57.4 2017 12.8 39.0 13.5 65.3 2018 14.6 39.0 15.5 69.1 2019 16.5 48.0 17.5 82.0 2020 18.5 50.0 20.0 88.5 2021 20.4 54.0 22.5 96.9 2022 22.4 64.0 25.0 111.4 2023 24.5 68.0 27.5 120.0 2024 26.6 73.0 30.0 129.6 2025 28.7 82.0 33.0 143.7 2026 30.9 87.0 3 6. 0 15 3. 9 2027 3-1 92.0 39.0 164.1 2028 35.4 102.0 42.0 179.4 2029 3 7. 7 104.0 45.0 186.7 2030 40.1 109.0 48.5 197.6 2031 42.5 109.0 52.0 2 03. 5 2032 44.9 114.0 55.5 214.4 2033 47.4 114.0 59.0 220.4 2034 50.0 119.0 62.5 23 1. 5 2035 52.6 119.0 66.5 23 8. 1 2036 55.2 122.0 70.5 247.7 2037 57.9 122.0 74.5 254.4 2038 60.7 125.0 78.5 264.2 2039 1 63.5 1 125.0 1 82.5 1 271.0 TOTAL 1 63.5 1 125.0 1 82.5 1 271.0 15 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis TABLE 5 CITY OF DENTON TAX INCREMENT FINANCING REINVESTMENT ZONE NO. 1 CITY YEAR TOTAL REAL PROPERTY VALUE INCREASE, $M CONTRIBUTION TO TIF, $K* INCOME TO CITY, $K 2010 - - - 2011 1.4 - - 2012 15.3 10 - 2013 20.0 106 - 2014 34.9 138 - 2015 3 8. 7 241 - 2016 57.4 254 13 2017 65.3 376 20 2018 69.1 428 23 2019 82.0 453 24 2020 88.5 537 28 2021 96.9 549 61 2022 111.4 602 67 2023 120.0 692 77 2024 129.6 745 83 2025 143.7 805 89 2026 153.9 892 99 2027 164.1 955 106 2028 179.4 1,019 113 2029 186.7 1,114 124 2030 197.6 1,159 129 2031 2 03. 5 1,159 204 2032 214.4 1,193 211 2033 220.4 1,257 222 2034 23 1. 5 1,292 228 2035 238.1 1,357 240 2036 247.7 1,396 246 2037 254.4 1,452 256 2038 264.2 1,492 263 2039 271.0 1,549 273 2040 - 1,589 280 TOTAL 271.0 24,811 3,479 * Based on 2010 tax rate of: Years 1 - 5 $0.6897500 / $100 valuation (100%) Years 6 - 10 $0.6552625 / $100 valuation (95%) Years 11 - 20 $0.6207750 / $100 valuation (90%) Years 21 - 30 $0.5862875 / $100 valuation (85%) 16 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis TABLE 6 CITY OF DENTON TAX INCREMENT FINANCING REINVESTMENT ZONE NO. I CITY YEAR TOTAL REAL PROPERTY VALUE INCREASE, $M BUSINESS PERSONAL PROPERTY INCOME TO CITY, $K** % VALUE INCREASE, $M 2010 - - - - 2011 1.4 40 1 0.6 - 2012 15.3 39 6.0 4 2013 20.0 38 7.6 41 2014 3 4. 9 37 12.9 52 2015 3 8. 7 36 13.9 89 2016 57.4 35 20.1 96 2017 65.3 34 22.2 139 2018 69.1 33 22.8 153 2019 82.0 32 26.2 157 2020 88.5 31 27.4 181 2021 96.9 30 29.1 189 2022 111.4 30 33.4 201 2023 120.0 30 3 6. 0 230 2024 129.6 30 38.9 248 2025 143.7 30 43.1 268 2026 153.9 30 46.2 297 2027 164.1 30 49.2 319 2028 179.4 30 53.8 339 2029 186.7 30 56.0 371 2030 197.6 30 59.3 386 2031 203.5 30 61.1 409 2032 214.4 30 64.3 421 2033 220.4 30 66.1 444 2034 23 1. 5 30 69.5 456 2035 238.1 30 71.4 479 2036 247.7 30 74.3 492 2037 254.4 30 76.3 512 2038 264.2 30 79.3 526 2039 1 271.0 30 1 81.3 547 2040 1 - - I - 561 TOTAL 1 271.0 30 1 81.3 8,607 *Estimated Business Personal Property & Inventory value for 2010 is $299 million, 39.1 % of real property value. To be conservative this percentage Nvas reduced from 40% to 30% over the next 11 years. This value Nvas used for the remainder of the TIF life. **Based on tax rate of $0.68975 / $100 valuation applied to business personal property & inventory value increases. 17 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis TABLE 7 CITY OF DENTON TAX INCREMENT FINANCING REINVESTMENT ZONE NO. 1 CITY YEAR INCOME FROM NEW REAL PROPERTY TAX, $K INCOME FROM NEW BUSINESS PERSONAL PROPERTY TAX, $K SUBTOTAL INCOME FROM NEW VALUES, $K INCOME TO CITY FROM BASE REAL AND BPP VALUES, $K* TOTAL INCOME TO CITY, $K 2010 - - - 759 759 2011 - - - 759 759 2012 - 4 4 759 763 2013 - 41 41 759 800 2014 - 52 52 759 811 2015 - 89 89 759 848 2016 13 96 109 759 868 2017 20 139 159 759 918 2018 23 153 176 759 935 2019 24 157 181 759 940 2020 28 181 209 759 968 2021 61 189 250 759 1,009 2022 67 201 268 759 1,027 2023 77 230 307 759 1,066 2024 83 248 331 759 1,090 2025 89 268 357 759 1,116 2026 99 297 396 759 1,155 2027 106 319 425 759 1,184 2028 113 339 452 759 1,211 2029 124 371 495 759 1,254 2030 129 386 515 759 1,274 2031 204 409 613 759 1,372 2032 211 421 632 759 1,391 2033 222 444 666 759 1,425 2034 228 456 684 759 1,443 2035 240 479 719 759 1,478 2036 246 492 738 759 1,497 2037 256 512 768 759 1,527 2038 263 526 789 759 1,548 2039 273 547 820 759 1,579 2040 280 561 841 759 1,600 TOTAL 3,479 8,607 12,086 23,529 35,615 * Based on 2010 real property value and 2009 business personal property & inventory value. 18 FINANCE PLAN: EXHIBIT D -- Feasibility Analysis SECTION V. EXHIBITS 19 0 V) (1) _C a) c -0 0 N > m C 0 — 41) = (n > _ > (1) m OL 0 — 0_0 (1) 42 4-0 ZO-,e LL .— T (.) (.) C)L CL 4) CR QL M CL ca m c 6- 4-j j; 3: E 6 E M w " > E c (a ;;-- 4-j Oi W 4-4 CY) CY) 70 0 41) o - 0 U) 70 -0 -0 > 0 If x m -0 m cr x E %MOO m Lj- m CL W -0 a o 4-5 -C :tt CL 4- 0 CL > 0 > �C -w o 0 73 20 c 0 C: r-L o c o M C M min O)o 0 Z3 4) w m -&a m a-) 0) 0 CL 0) (1) 0. 0 c 0 > 7= m -C a) M =3 -C 0 < m 4-a \ / : � / � � / ? 0" E CL 5) 2E m 0 -00) w E u) S