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Home My WebLink About20-284RESOLUTION NO. 20-284 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING THE 2018-2019 TAX INCREMENT FINANCING REINVESTMENT ZONE NUMBER ONE 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 (the "District") and established a Board ofDirectors (the "Board") 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 ofthe Texas Tax Code (the "Act"), 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 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 November 20, 2019, the Board reviewed and recommended approval of the 2018-2019 Annual Report for the District to the City Council. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the 2018-2019 Annual Report for Tax Increment Financing Reinvestment Zone Number One, City of Denton, Texas, as of November 20, 2019, a copy of which is attached hereto as Exhibit A, is hereby accepted. SECTION 2. That the City Manager is herby authorized to submit the 2018-2019 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 pas sage in accordance with the provisions of the Charter of the City of Denton, and it is accordingly so resolved. The motion to approve this resolution was made by fJ11 UL-/11 ELTZEL and seconded by Voffttl f 'ftl:ttl , the resolution was passed and approved by the following vote l2._-JL J: Mayor, Chris Watts: Gerard Hudspeth, District 1: Keely G. Briggs, District 2: Jesse Davis, District 3: John Ryan, District 4 : Deb Armintor, At Large Place 5 : Paul Meltzer, At Large Place 6: Aye 1/ v v ,, .; Nay Abstain Absent PASSED AND APPROVED this the /e1i day of ',~ , 2020 , CHRIS WATTS, MAYOR ATTEST: ROSARIOS, CITY SECRETARY APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: EXHffiiTA 2018-2019 Annual Report for Tax Increment Financing Reinvestment Zone Number One City ofDenton, Texas Tax Increment Financing Reinvestment Zone Number One (Downtown TIRZ) 2018-2019 Annual Report 1917 Education Rally on the Square City of Denton Economic Development Department 215 E. McKinney Street Denton, Texas 76201 940-349-7776 www .dentonedp.com October 1, 2018 to September 30, 2019 Table of Contents Map ... 3 Mission Statement ... 4 District Accomplishments ... 4 Value and Increment Summary ... 4 Summary ofTIRZ Board meetings ... 5 & 6 Budget and Spending Status ... 6 2018-2019 Work Program ... ? Appendix A: TIRZ One Balance Sheet ... 9 2 Cl) UJ ::J "C c::: ca ..J C) c ~ .! >< w ..., u ·-... ..., .!! c LL i= .. u ~ .c ·-.c >< w Reinvestment Zone Number One Downtown Tax Increment Financing District Legend Property Description Acreage w/orw/o Agr use Cable Company Duplex Exempt Gas Company Multifamily Phone Company Real and Conmercial Single Family Townhome Vacant Commercial Lots N w+e s April 16 20 10 _c::J_::JI ___ IC====~---•MIIes This map Is agraphic repnsentatlon prepared 1::tt the City of Denton and Is Intended for use only as a reforenco. Data cleplctod 0 4 Is not guaranteed for accuracy and may be subject to revision at any time without notification. A Registered Surveyor for the 0 0.05 0.1 0.2 0.3 • State of Texas was not consulted. For Survey level accuracy, supervision and certlflcatlon of the produced data by a Registered Professional Land SUrvey« for the State of Texas would need to be performed. 3 Mission Statement The mission of the Tax Increment Financing Reinvestment Zone Number One (Downtown TIRZ) is to provide a source of funding for public infrastructure improvements to encourage and accelerate necessary development and redevelopment within the Downtown TIRZ District area. The Downtown TIRZ 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% Years6-10 95% Years 11-20 90% Years 21-30 85% District Accomplishments This report represents October 1, 2018 through September 30,2019. During Fiscal Year 2018-2019, $538,3004 was collected after the end of the supplemental period determined by the City of Denton. An additional $11,589 in interest brings the total contribution in 2018-2019 to $549,889. The fourth annual grant payment of$76,000 was distributed to Rail Yard Partners, LTD, through a Chapter 380 Agreement for a catalyst project located within TIRZ #1. The Agreement with Rail Yard Partners, LTD., involves an annual grant of $76,000 for five years, for a total incentive of $380,000. Value and Increment Summary According to Denton Central Appraisal District (DCAD) supplemental figures, the 2018-2019 total appraised valuation of taxable real property in TIRZ Number One was $170 678 753 . This represents a $9,327,538 increase from the previous supplemental value of$161,351,215. The annual TIRZ fund contribution ofproperty taxes and interest income for 2018-2019 is $549,889. Since its inception, the final value with supplements ofthe TIRZ has increased an estimated $91 .3 million, which represents a 115.1% increase in valuation. 4 Summary of T IRZ Board meetings The Downtown TIRZ Board met on January 23, 2019 Board Member List and attendance Alex Payne, Property Owner Melissa Lenburg, Property Owner/Resident Gerard Hudspeth, City Council Member Paul Metzler, City Council Member Ken Gold, Qualified Voter John Lenz, Property Owner Absent: Ben Esely, Business Owner The Downtown TIRZ Board met on August 21, 2019 Board Member List and attendance P aul Metzler, City Council Member Gerard Hudspeth, City Council Member Ken Gold, Qualified Voter Ben Esely, Property Owner Melissa Lenaburg, Property Owner John Lenz, Property Owner Absent: Alex Payne, Chamber of Commerce Member The Downtown TIRZ Board met on September 25, 2019 Board Member List and attendance Gerard Hudspeth, City Council Member Paul Meltzer, City Council Member 5 Alex Payne, Property Owner John Lenz, Property Owner Melissa Lenaburg, Property Owner Ben Esely, Business Owner Absent: Ken Gold, Qualified Voter During 2018-2019, the TIRZ Board took the following action on items: Received briefings on: The Mews Streets proposed Improvements, updates on TIRZ capital improvements on sidewalks and lighting, valet solid waste and recycling services, power washing and downtown cleaning funding sources, reviewed catalyst projects, considered the scope of work for the hiring of a TIRZ consultant, reviewed the application process for the use of TIRZ funds and made a recommendation to City Council to approve the 2017-2018 Downtown Tax Increment Finance Zone No.1 Annual Report. Budget and Spending Status The Downtown TIRZ District has established in its Project and Finance Plans a budget for public improvement expenditures necessary to support private investment in the district. In 2018-2019, $549,889 ofproperty taxes and interest income was collected. On September 17, 2013, Council adopted Ordinance 2013-237, which designated mixed beverage tax to the Downtown Reinvestment Grant fund. In 2017, Council adopted Ordinance 2017-251, removing the designation of future mixed beverage taxes, but committing the existing fund balance in the fund for the same purpose. On September 18, 2018, City Council amended Ordinance number 2012-001, changing the funding source, policy, and procedures for the Downtown Reinvestment Grant Program. Changes included that grants will be funded by the Tax Increment Reinvestment Zone #1 (Downtown TIF). At this time, $48,513 remains in this fund account for the grant, which Council directed be spent down to $0. This grant will come from those funds and follow the current procedure of 1.) Recommendation from the Downtown Task Force to the Economic Development Partnership (EDPB) Board, 2.) Recommendation from the EDPB to City Council, 3.) Final approval from City Council. Once the current fund balance has reached $0, the approval sequence will be 1.) Recommendation from the Downtown Task Force to the Downtown Tax Increment Finance Zone (TIRZ), Board, 2.) Recommendation from the TIRZ to City Council , 3.) Final approval from City Council. The fourth-year payment, in the amount of $76,000, was distributed to The Railyard Project in 2018-19. The Agreement with Rail Yard Partners , LTD. involves an annual grant of $76,000 for five years, for a total incentive of$380,000. 6 2018-2019 Work Program The TIF Valuation and interest contribution into the TIRZ fund are illustrated in the table that follows. c t•fi d d s t s I I Annual Year TIRZ Certified Supplemental Captured Ta\ Value TIRZ T ;l\ Value Sullplement Value 2010 79,356,854 79 ,356 ,854 N/A 2011 81 ,657 ,808 80 331 ,050 $974 ,196 2012 89 ,605 ,6 35 93 ,040 ,263 $13 ,683 ,409 2013 96 ,287 ,950 100,452 ,300 $2 1,095 ,446 2014 114,885,073 116 ,769,43 5 $37,41 2,581 2015 118 ,4 40 ,576 127 ,204,5 99 $47 ,847 ,745 2016 136,021,478 150,021,979 $70,665,125 2017 142,050,751 161,351,215 $81,994,361 2018 167,000,575 170,678,753 91,321,899 Totals Fund Balance as of 913012019 is $517,554 Supplemental Contribution to TIRZ N/A 6 ,720 94,381 145 ,506 258 ,053 330 ,03 0 458,739 496,856 538,300 2,328,585 Interest Total TIRZ ReHnue N/A N/A 17 6 ,737 297 94 ,678 1,084 14 6,590 2 ,8 21 260,874 5 ,855 33 5 ,885 11,439 470,178 6,712 503,568 11,589 549 ,889 39,814 2,368,399 7 Appendix A: TIRZOne Balance Sheet 8 CITY OF DENTON TAX INCREMENT FINANCING REINVESTMENT ZONE (TIRZ) NUMBER ONE DOWNTOWN ACTUAL REVENUE AdjUSted Fiscal Year Supplemental Increase Incremental Tax Year as of9130 Tax Value {Decrease} Contribution Value Tax Rate 2010 2010-2011 $ 79,356,854 N/A N/A 2011 2011-2012 80,331 ,050 974,196 100% 974 ,196 0 .68975% 2012 2012-2013 93,040,263 13,683,409 100% 13,683,409 0.68975% 2013 2013-2014 100,452,300 21 ,095 ,446 100% 21,095 ,446 0.68975% 2014 2014-2015 116,769,435 37 ,412 ,581 100% 37 ,412,581 0.68975% 2015 2015-2016 127 ,204,599 47 ,847 ,745 100% 47 ,847 ,745 0.68975% 2016 2016-2017 150,021,979 70,665,125 95% 67,131 ,869 0.68334% 2017 2017-2018 161,351,215 81,994,361 95% 77,894,643 0.637856% 2018 2018-2019 170,678,753 91,321 ,899 95% 86,755,804 0.620477% Totals *Fund Balance as of9/30/2019 is $517,554 Annual TI RZ Ad Valorem 1 I Interest Total Total Fund Revenue Income Revenue Expenditures Balance* N/A N/A N/A N/A N/A 6 ,720 17 6,737 -6,737 94 ,381 297 94,678 -94 ,678 145,506 1,084 146,590 -146 ,590 258,053 2,821 260 ,874 -260 ,874 330,030 5,855 335 ,885 76,000 259 ,885 458 ,739 11,439 470,178 76 ,000 394,178 496,856 6,712 503,568 1,542,845 (1,039,277 ) 538,300 11,589 549,889 156,000 393,889 $2,328,585 $ 39,814 $2,368,399 $ 1,850,845 $ 517,554