The URL can be used to link to this page

Home My WebLink AboutR2016-011s:Vegal\our dociirraentslr�solutions\l6\2615 dowrntown tif.doc �soLUTlo�v No. R2016-0 l 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING THE 2015 TAX 1NCREMENT FINANCING REINVESTMENT ZONE NUMBER ONE (DOWNTOWN TIF) ANNUAL REPORT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Denton 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 One (Downtown TIF) and established a Board of Directors for the District to promote development or redevelopment in the Downtown area pursuant to Ordinance No. 2010-316, authorized by the City Council on December 7, 2010, as provided by the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code, as amended; and WHEREAS, on December 7, 2010, the City Council authorized the Project and Finance Plans for the Downtown TIF District; and WHEREAS, the Tax Increment Financing Act speciiies that the governing body of a city shall submit an annual report an the financial status af the district to the Chief Executive Ofiicer 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 WHEREAS, on April 1, 2016, the Downtown TIF District Board reviewed and recommended approval of the 2015 Annual Report for Tax Increment Financing Reinvestment Zone Number One to the City Council; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The 2015 Annual Report for Tax Increment Financing Reinvestment Zone Number One (Downtown TIF), City of Denton, Texas, as of December 31, 2015, a copy af which is attached here to (Exhibit A), and is hereby accepted. SECTION 2. The City Manager is herby authorized to submit the 2015 Annual Report for Tax Increment Financing Reinvestment Zone Number One to the Chief Executive Officer of each taxing jurisdiction that levies tax on real property in the District; and to the State Comptroller, as required by state law. SECTION 3. This resolution shall take effect immediately from and after its passage in accordance with the provisions of the Charter of the City of Denton, and it is accordingly so resolved. PASSED AND APPROVED this the ATTEST: JENNIFER WALTERS, CITY SECRETARY �� i APPRO�'1�',i� AS "�`�,� LEGAL FORM: ANITA I� ,��.�.iESS, CITY ATTORNEY �� .. ��" �� BY: �� -�— ��~ �,�� . � � �� m.M.�,n� ...�� °��"��"��, day of �� _., 2016. �. . __� �_ � ..�n.�.----- . d�� .�� ^ � ' �� C 1.,�`[�1�� .m..�.. � ..mm..� � . �OR.�,.... ........ " � "�; WATTS, Page 2 EXHIBIT A Tax Increment Financing Reinvestment Zone Number One (Downtown TIF) 2015 Annual Report City of Denton Economic Development Division 215 E. McKinney Street Denton, Texas 76201 940-349-7776 m�e��,�� m�� January 1, 2015, to December 31, 2015 Table of Contents Map...3 Mission Statement...4 District Accomplishments...4 Value and Increment Summary...4 Summary of TIF Board meetings...5 Budget and Spending Status...6 2015 Work Program...7 z Reinvestment Zone Number One Downtown Tax Increment Financing District Legend ' TIF Boundary - Centerline Streets perty Description Acreage w/orw/o Agr use Cable Company Duplex F�cempt Gas Company Multifamily Phone Company Real and Commercial Single Family Townhome Vacant Commercial Lots i� � � � � � April 16 2010 � Miles Thle map la a graph� represerrtatbn prepared 6ythe Clty of Denton and le Intended for uee only as a reFerence. Date daplcted 0 � 0.05 0.1 0.2 �� 0.3 0,4 le not guarerrtead fa aoouraoy end may be eubJaot to rovlslon at ary tlme wlthout notMlcatlon. A R�gletaretl Surveyor TorShe 9tffie of Te�cae was not coneulted. For Survey lavel accura�y, eupervlslon and ceAlflcatlon oF the produced data by a Reglatered Profe�lonal Lantl Surveyor for the State of Texae woultl neetl to De perto�med Mission Statement The mission of the Tax Increment Financing Reinvestment Zone Number One (Downtown TIF) is to provide a source of funding for public infrastructure improvements to encourage and accelerate necessary development and redevelopment within the Downtown TIF District area. The Downtown TIF took effect on January 1, 2011, and will terminate on December 31, 2041, or when the budget of $24.8 million has been collected. The City of Denton is the sole participating jurisdiction. The City's participation is as follows: Years 1-5 100% Years 6-10 95% Years 11-20 90% Years 21-30 85% District Accomplishments During calendar year 2015, $330,030 was collected after the end of the supplemental period determined by the City of Denton; no funds were distributed. Value and Increment Summary According to Denton Central Appraisal District (DCAD) supplemental figures, the 2015 total appraised valuation of taxable real property in TIRZ Number One was $127.2 million. This represents a$10.4 million increase from the 2014 supplemental value of $116.8 million. The annual TIRZ fund contribution of property taxes and interest income for 2015 is $331,397. Since its inception, the value of the TIRZ has increased an estimated $47.8 million, which represents a 60.3% increase in valuation. 4 Summary of TIF Board meetings The Downtown TIF Board met on January 16, 2015. Board Member List and attendance Bob Moses, Property Owner Harold Strong, Qualified Voter of the City of Denton Marty Rivers, Chamber of Commerce Member Virgil Strange, Property Owner Chris Watts, City Council Member Absent: Hank Dickenson, Kevin Roden The Downtown TIF Board met on May 1, 2015 Board Member List and attendance Bob Moses, Property Owner Harold Strong, Qualified Voter of the City of Denton Marty Rivers, Chamber of Commerce Member Virgil Strange, Property Owner Hank Dickenson, Chamber of Commerce member Kevin Roden, City Council Member Absent: Chris Watts During 2015, the TIF Board took the following action on items: Received briefings on: preliminary annual ad valorem value of TIF Number One, East Hickory capital improvements, an innovation and technology recruitment initiative for CoDenton, the City's Leadership Excellence and Enhancement Program (LEEP) and openings and closings of downtown businesses. 5 Budget and Spending Status The Downtown TIF District has established in its Project and Finance Plans a budget for public improvement expenditures necessary to support private investment in the district. In 2015, $331,397 of property taxes and interest income was collected. In the January 16, 2016, meeting, the Board voted in favor of using Downtown TIF Number One funds for a 380 incentive for a catalyst project located within the TIF District. The Railyard downtown project is located in TIF Number One, Downtown Implementation Plan (DTIP) and Transit Oriented Development (TOD) area. The project involves a Commercial Lease Agreement with the Developer (Rail Yard Partners, LTD) and a Chapter 380 Agreement including revenue from the Downtown TIF Number One with the developer. The City has entered into a separate agreement with the Dallas Entrepreneur Center (DEC) to program and manage the project's co-working space. Rail Yard Partners, LTD. is renovating an existing 28,000 square foot building as a part of a larger transit-oriented catalyst project. They will invest an initial $12 million in the co-working and mixed-use space. The City will lease 9,216 square feet for a collaborative working space. The DEC, which has similar entrepreneur resource centers in Addison and North Dallas, would offer memberships, technical assistance, mentorship and program events to help foster local business growth in Denton. The Agreement involves an annual grant in the amount of $76,000 for five years, for a total incentive of $380,000. It also includes a 50% sales tax rebate on the retail portion of the project, estimated to equate to $25,000 to $35,000 annually. The Commercial Lease Agreement is a five year lease at $9.75 per square foot for year one, with an approximate 3.5% increase in the cost annually thereafter, in addition to operating expenses including the City's pro rata share of real estate taxes, insurance, common area maintenance, and operating expenses. Dickenson moved to approve making a recommendation to City Council regarding using the Downtown TIF Number One funds for a Chapter 380 Incentive Agreement for a catalyst project located within the TIF District by allowing 100 percent abatement of the revenue, maximum of $76,000 per year, generated by the project in the TIF Number One, up to $380,000 cumulative, allowing five to ten years to receive that reimbursement amount. The motion was seconded by Harold Strong and carried unanimously (5-0). No funds were distributed for this project in 2015. [� 2015 Work Program One project was approved for a 380 Incentive Agreement; no funds were expended. The TIF Valuation and interest contribution into the TIRZ fund are illustrated in the table that follows. Please note that the 2015 contribution into the TIRZ fund will change slightly once the November and December interest have been accounted for. Certifed and Supplemental TIRZ No. 1 Contribution Summary "Interest for 2015 is eamed through 1/31/16 7