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Home My WebLink AboutR2017-027R-2017-027 RESOLUTION NO, A RESOLUTION OF TIIE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING THE 2016 TAX INCREMENT FINANCING REINVESTMENT ZONE NUMBER ONE (DOWNTOWN TIF) ANNUAL REPORT; AND DECLARING AN EFFECTIVE DATE. WIIEREAS, the City of Denton recognizes the importance of its role in local economic development initiatives and programs; and WHEREAS, the City has established "fax Increment Financing Reinvestment Zone Number One (Downtown TIP) 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 WIIEREAS, 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 WHEREAS, on July 21, 2017, the Downtown TIF District Board reviewed and recommended approval of the 2016 Annual Report for Tax Increment Financing Reinvestment Zone Number One to the City Council; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The 2016 Annual Report for Tax Increment Financing Reinvestment Zone Number One (Downtown TIF), City of Denton, Texas, as of December 31, 2016, a copy of which is attached here to (Exhibit A), and is hereby accepted. SECTION 2. The City Manager is herby authorized to submit the 2016 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 day of � s ww_ , 2017. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ........ APPROVED AS TO LEGAL FORM: AARON LEAL, INTERIM CITY ATTORNEY ��. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF TIIE CITY OF DENTON, TEXAS, APPROVING THE 2016 TAX INCREMENT 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 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 WHEREAS, on July 21, 2017, the Downtown TIF District Board reviewed and recommended approval of the 2016 Annual Report for Tax Increment Financing Reinvestment Zone Number One to the City Council; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The 2016 Annual Report for Tax Increment Financing Reinvestment Zone Number One (Downtown TIF), City of Denton, Texas, as of December 31, 2016, a copy of which is attached here to (Exhibit A), and is hereby accepted. SECTION 2. The City Manager is herby authorized to submit the 2016 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. Tthis 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 ' day of 2017. CHRIS WATTS, MAYOR JENNIFER WALTERS, CITY SECRETARY LIMA BY: �-11f I Tax Increment Financing Reinvestment Zone Number One (Downtown TIF) 2016 Annual Report City of Denton Economic Develop ,Dep rt pmt, 215 E. McKinney: tie e t Denton, Texas 76201 940-34V-7776 www.deift() AD Jari iuii as r,17 1, 2016, to De einber 3J.'21)16,, 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 Reinvestment Zone Number Downtown '° District P'R'ILELe- April 16 2010 N1oVp>r» ihNs ndasrp Ww a praphNp roprmentaflon pfirpared hytho Chy of Mmonared We 4nfen4ed for mo only og d redarvw, dW7oW deptowd 0 005 01 02 03 04 Is taut duarraifted for rreeaumacy mid may he Sait4act to pomlwlon of oriy f fnme WIh'ond nofhleetdan. A RegW eedoo Swmveyor for the SSw r of Tom m" not uor adrdteif. ForS urvq Wa ye W edm w ocyr, ruoperu dwaioo and u e d hl r of on of fh a prodoeed daarur by ya fG q W l ardd Ptofeeoiortrml Laird huarweyor dor the 'rafatleof"rexrae awoultl Mr d to he peafomrned 41 Uj 6 f INWNOUIf�//l I 4'� f a � 41Ww Olo W q�yn � "Um fA /,.. GG Gn nG unhn'n P'R'ILELe- April 16 2010 N1oVp>r» ihNs ndasrp Ww a praphNp roprmentaflon pfirpared hytho Chy of Mmonared We 4nfen4ed for mo only og d redarvw, dW7oW deptowd 0 005 01 02 03 04 Is taut duarraifted for rreeaumacy mid may he Sait4act to pomlwlon of oriy f fnme WIh'ond nofhleetdan. A RegW eedoo Swmveyor for the SSw r of Tom m" not uor adrdteif. ForS urvq Wa ye W edm w ocyr, ruoperu dwaioo and u e d hl r of on of fh a prodoeed daarur by ya fG q W l ardd Ptofeeoiortrml Laird huarweyor dor the 'rafatleof"rexrae awoultl Mr d to he peafomrned 41 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 2016, $458,739 was collected after the end of the supplemental period determined by the City of Denton. An additional $1,676 in interest brings the total contribution in 2016 to $460,415. The annual grant payment of $76,000 was distributed to Rail Yard Partners, LTD, through a Chapter 380 Agreement for a catalyst project located within TIF #1. Value and Increment Summary According to Denton Central Appraisal District (DCAD) supplemental figures, the 2016 total appraised valuation of taxable real property in TIRZ Number One was $150.0 million. This represents a $22.8 million increase from the 2015 supplemental value of $127.2 million. The annual TIRZ fund contribution of property taxes and interest income for 2016 is $460,415. Since its inception, the value of the TIRZ has increased an estimated $70.7 million, which represents an 89.0% increase in valuation. 4 Summary of TIF Board meetings The Downtown TIF Board met on January 15, 2016 Board Member List and attendance Bob Moses, Property Owner Hank Dickenson, Chamber of Commerce Member Marty Rivers, Chamber of Commerce Member Virgil Strange, Property Owner Chris Watts, City Council Member Kevin Roden, City Council Member Absent: Harold Strong The Downtown TIF Board met on April 1, 2016 Board Member List and attendance Bob Moses, Property Owner Hank Dickenson, Chamber of Commerce Member Marty Rivers, Chamber of Commerce Member Virgil Strange, Property Owner Melissa Lenaburg, Qualified Voter of the City of Denton Absent: Chris Watts, Kevin Roden During 2016, the TIF Board took the following action on items: Received briefings on: preliminary annual ad valorem value of TIF Number One, gave direction regarding appointment of board members, received a request for funding from 608 E. Hickory for removing overhead utility lines (not approved), reviewed a request to pay for the downtown building outline light maintenance (not approved), suggested a policy or procedure for setting aside a percentage or a certain dollar amount in regard to small projects (no action at this time), approved the 2016 Annual Report for TIF #1. 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 2016, $460,415 of property taxes and interest income was collected. In the January 16, 2015, meeting, the Board voted in favor of using Downtown TIF Number One funds for a Chapter 380 incentive for a catalyst project located within the TIF District. At the January 16, 2015, meeting, the Board voted in favor of using Downtown TIF Number One funds for a Chapter 380 incentive for a catalyst project located within the TIF District. The Rail Yard downtown project is located in TIF Number One, the Downtown Implementation Plan (DTIP) area and Transit Oriented Development (TOD) area. Rail Yard Partners, LTD, has renovated an existing 28,000 square foot building as a part of a larger transit -oriented catalyst project that includes office, retail and restaurant space along with multi -family housing. The Agreement involves an annual grant in the amount of $76,000 for five years, for a total incentive of $380,000. 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). The first year payment in the amount of $76,000 was distributed for this project in 2016. 11 2016 Work Program One project was approved for a Chapter 380 Incentive Agreement; $76,000 were expended. The TIF Valuation and interest contribution into the TIRZ fund are illustrated in the table that follows. *95% contribution from decreasing ratio begins Interest is earned through 12/31/16 7