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Home My WebLink About18-244RESOLUTION NO. 18-244 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING THE 2017 TAX INCREMENT FINANCING REINVESTMENT ZONE NUNMBER 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 January 24, 2018, the Downtown TIF District Board reviewed and recommended approval of the 2017 Annual Report for Tax Increment Financing Reinvestment Zone Number One to the City Council, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DENTON: SECTION 1. That the 2017 Annual Report for Tax Increment Financing Reinvestment Zone Number One (Downtown TIF), City of Denton, Texas, as of December 31, 2017, a copy of which is attached here to (Exhibit A), and is hereby accepted. SECTION 2. That the City Manager is herby authorized to submit the 2017 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. That 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 �� ,� °� ��r __ day of �� " �� " , 2018. � .,.�,� � � � �� f � �� .a�� '= .______ � �,:� _ �� _� �� .. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY �� BY: .....,�„ � � :. ��,�". ��,,,�� " APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY � �.�,��w. Y� � �:, tl k 1 4 � n.� � � I BY: W��rW �„rt a � „a N� w� �,, ��' �,, � d ¢� �,�, � ��' � �,. ... ,m , �,,,: .�..1.4, . �.ye ' . . ___.�_ � ,�.�—!�.�... f r��d �� c �,.�.� w_._....,. Tax Increment Financing Reinvestment Zone Number One (Downtown TIF) 2017 Annual Report City of Denton Economic Development Department 215 E. McKinney Street Denton, Texas 76201 940-349-7776 . .��.��:��a�� January 1, 2017, to December 31, 2017 Table of Contents Map...3 Mission Statement...4 District Accomplishments...4 Value and Increment Summary...4 Summary of TIF Board meetings...5 & 6 Budget and Spending Status...6 2017 Work Program...7 Reinvestment Zone Number One Downtown Tax Increment Financing District Legend ITIF Boundary - Centerline Streete perty Description Acreape w/orw/o Agr use Cable Company Duplex Exempt Gas Company Multliamily Phone Company Real and CortrtKnnercial Single Family Townhome Vacant Commercial Lots i�' o�/ �dp'��VI', "�� N��,� ��.. Miles Thle mep le a yraphb repneartetbn pr�parotl b/ the Clty oT MMon end le Intanded for uea only as e refv�nca. D�a deplcted 0 ��0,0.5 0 1 0 2�� 0.3 0 4 Is not gueranteea ior accwacy antl may be subJect to revlelon et any tlms wltnoul notlFbatlon. A ReplstenE 9urvayor for the 8tat� of T�Kas wae nol coneultW. For 9urvy I�v�l aocurecy, aup�rvlelon a� c�RlRcatlon oTth� protluc�tl data by a R�gbt�nC ProFesslonal Land Surveyar for the Slate of Texas woulA need to be performed 3 � • , . �- • �- • �� • • • • �- . � - • . � , � , - • � - . � - � , - . r - - . - - -� � � �-� - � ► � � - . �� • - � �-� - � � - �� - � � �� - . - . The Downtown TIF took effect on January 1, 2011, and will terminate on I7ecember 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% • � � During calendar year 2017, $496,$56 was collected after the end of the supplemental period determined by the City of Denton. An additional $3,673 in interest brings the total contribution in 2017 to $500,529. 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. According to Denton Central Appraisal District (DCAD) supplemental figures, the 2017 total appraised valuation of taxable real property in TIRZ Number One was $161.4 million. This represents a$11.3 million increase from the 2017 supplemental value of $150 million. The annual TIRZ fund contribution of property taxes and interest income for 2017 is $500,529. Since its inception, the final value with supplements of the TIRZ has increased an estimated $82 million, which represents a 103% increase in valuation. 4 The Downtown TIF Board met on January 6, 2017 Board Member List and attendance Virgil Strange, Property Owner Kevin Roden, City Council Member Marty Rivers, Chamber of Commerce Member Hank Dickenson, Chamber af Cammerce Member ob Moses, Property Owner Melissa Lenaburg, Quali�ed Voter The Downtown TIF oard met on July 21, 2017 Board Member List and attendance V�rgil Strange, Property Owner Melissa Lenaburg, Qualified Voter of the City of Denton Hank Dickenson, Chamber of Commerce Member Bob Moses, Property Owner Absent: Chris Watts, Marty Rivers The Downtown TIF Board met on November 17, 2017 Board Member List and attendance Virgil Strange, Property Owner Hank Dickenson, Charnber of Commerce Member Sara Bagheri, City Council Member en Esely, Business Owner Paul Meltzer, Qualified Vater � i t During 2017, the TIF Board taok the fallowing actian an items: Received briefings on: preliminary annual ad valorem value of TIF Number One, gave direction regarding appaintment of board members, averview of City projects for which TIF funds cauld be used, received a request for funding a praject at 207 W. Hickory (relocate utilities in the right-af-way; the request was tabled, no further information was brought farth by the applicant), approved the 2016 Downtawn TIF #1 Annual Report, and made a recommendatian to City Council to use TIF funds for four Capital Impravement Projects. i 1�`' , 1 1>� 1 i . The Downtown TIF District has established in its Praject and Finance Plans a budget for public improvement expenditures necessary to support private investment in the district. In 2017, $500,529 af property taxes and interest income was callected. The TIF Board met an November 17, 2017, and reviewed four recommended Capital Impravement Projects. Based an costs, the TIF Baard recommended funding the fallowing, as funds became available (5-0), but not to spend more than 33 percent of the fund balance: Project A: North Locust, narth of the Square: sidewallcs on both sides need repair ar replacement, ADA ramps, and pedestrian-scale lighting from West Oak to McKinney. Project B: North Elm, narth of the Square: sidewalks on both sides need repair ar replacement, ADA ramps, and pedestrian scale lighting from West Oak ta Parkway. Project C: Pedestrian scale lighting on West Oak Street, west of the Square, fram the 200 block to the east side of Carroll Boulevard. Project D: Pedestrian scale lighting an West Hickory Street, west of the Square, Cedar Street On December 5, 2017, City Council met, reviewed the projects and gave staff direction to proceed with all four projects, adding upgraded light poles ta metal, historic poles fram the aggregate poles on Projects A, B, C, and D. They did not take the TIF Board's recommendation to limit the amount ta 33 percent of the TIF fund balance. On January 9, 2018, the City Council met and approved funding prajects A, B, C and D far a total of $1,466,$45. The secand year payment in the amaunt of $76,000 was distributed ta The Railyard Praject in 2017, 2017 Work Program The TIF Valuation and interest contribution into the TIRZ fund are illustrated in the table that follows. Interesl for 2017 is earned through 12/31/17 *95% conlribution from decreasing ratio begins