2011-129
FINANCE PLAN DENTON TIF NO. 1
FINAL
FINANCE PLAN
December 2010
Tax Increment Financing Reinvestment Zone No. 1
City of Denton, Texas
George R. Schrader Larry D. Cline
4800 Broadway, Ste A Addison, TX 75001
972-661-1973 schcli@swbell.net
1
FINANCE PLAN DENTON TIF NO. 1
December 2010
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 construction of public works,
public improvements, new buildings, structures, 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 construction and for one year after completion of
construction, 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 unde
Finance Plan Exhibit: C
No. 1, are included in .
2. Estimated Project Cost of TIF, including administrative expen.
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 in
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
expected sources of revenue to finance or pay project costs incl
percentage of tax increment to be derived from the property taxe
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 th
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 dur
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.
3
FINANCE PLAN DENTON TIF NO. 1
TABLE 1
Assessed Real Property Value Including Anticipated New Development
Years 2010-2039
YEAR TOTAL ASSESSED VALUE, $M
201080.2
201181.6
201295.5
2013100.2
2014115.1
2015118.9
2016137.6
2017145.5
2018149.3
2019162.2
2020168.7
2021177.1
2022191.6
2023200.2
2024209.8
2025223.9
2026234.1
2027244.3
2028259.6
2029266.9
2030277.8
2031283.7
2032294.6
2033300.6
2034311.7
2035318.3
2036327.9
2037334.6
2038344.4
2039351.2
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
BASE ANNUAL
ASSESSED
Year
ASSESSED CAPTURED TIF FUND, $K
VALUE $M
VALUE $MVALUE $M
201080.2 80.2----
201181.6 80.21.4--
80.215.310
201295.5
80.220.0106
2013100.2
2014115.1 80.234.9138
2015118.9 80.238.7241
80.257.4254
2016137.6
80.265.3376
2017145.5
80.269.1428
2018149.3
2019162.2 80.282.0453
2020168.7 80.288.5537
80.296.9549
2021177.1
80.2111.4602
2022191.6
80.2120.0692
2023200.2
2024209.8 80.2129.6745
2025223.9 80.2143.7805
80.2153.9892
2026234.1
80.2164.1955
2027244.3
80.2179.41,019
2028259.6
2029266.9 80.2186.71,114
2030277.8 80.2197.61,159
80.2203.51,159
2031283.7
80.2214.41,193
2032294.6
80.2220.41,257
2033300.6
2034311.7 80.2231.51,292
2035318.3 80.2238.11,357
80.2247.71,396
2036327.9
80.2254.41,452
2037334.6
2038344.4 80.2264.21,492
2039351.2 80.2271.01,549
2040------1,589
351.280.2271.024,811
TOTAL
2010TIF CONTRIBUTION TAX RATE / $100 VALUATION
Tax Rate /
$100 ValuationYEARS 1 -5YEARS 6 -10YEARS 11 -20YEARS 21 -30
City of Denton0.689750.689750.65526250.62077500.5862875
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.
5
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 A1184A 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
EXHIBIT B
Property Boundary Map
8
EXHIBIT C
PROJECTESTIMATED COST, $M
Parking / Transportation8.0
Complete Streets7.9
Support for DowntownProjects 4.9
Utility / Drainage Improvements4.0
TOTAL24.8
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:ulti-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
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 construction 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
FINAL
FEASIBILITY ANALYSIS
(EXHIBIT D OF THE FINANCE PLAN)
December 2010
Tax Increment Financing Reinvestment Zone No. 1
City of Denton, Texas
George R. Schrader Larry D. Cline
4800 Broadway, Ste A Addison, TX 75001
972-661-1973schcli@swbell.net
FINANCE PLAN: EXHIBIT D -- Feasibility Analysis
INDEX
Page
Index1
Forward2
Section I:HISTORY3
Section II:CURRENT CONDITION / STATE4
Section III:TAX INCREMENT ANALYSIS6
Section IV:TABLES11
TABLE 1 --General Value Increase, $M12
TABLE 2 --Catalyst Project Value Increase, $M13
TABLE 3 --Other Development/Redevelopment Value Increase, $M14
TABLE 4 --Cumulative Total Value Increase, $M15
TABLE 5--City Contribution to TIF, $K16
TABLE 6--City BPP Value Increase, $K17
TABLE 7--Total Income to City, $K18
Section V:EXHIBITS19
EXHIBIT I --Catalyst Project Overview20
EXHIBIT II --Area A21
EXHIBIT III --Area B22
EXHIBIT IV --Area C23
EXHIBIT V --Area D24
EXHIBIT VI --Area E25
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FINANCE PLAN: EXHIBIT D -- Feasibility Analysis
FORWARD
Schrader & Cline, LLC was asked to prepare a Feasibility Analysis using tax increment
Tax Increment
financing to encourage accelerated development and redevelopment for
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
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.
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FINANCE PLAN: EXHIBIT D -- Feasibility Analysis
SECTION I: 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
in 1890 with the opening of North
Texas Normal College (now the University of North Texas) and in 1903 with the opening of the
niversity). 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.
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FINANCE PLAN: EXHIBIT D -- Feasibility Analysis
SECTION II: CURRENT CONDITION / 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.
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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
downt225.73 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.
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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 construction costs for new construction. 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 propertyvalues 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.
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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 increasein 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 I) which would--
Address underserved market niches in Denton,
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--
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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 II, 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.
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FINANCE PLAN: EXHIBIT D -- Feasibility Analysis
Development Annual Value
Time Period Increase, $M
2010--
20113.0
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
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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 35,615
The public infrastructure projects planned to stimulate the higher values created by the TIF are
shown in Project Plan Exhibit D.
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FINANCE PLAN: EXHIBIT D -- Feasibility Analysis
SECTION IV: TABLES
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FINANCE PLAN: EXHIBIT D -- Feasibility Analysis
TABLE 1
CITY OF DENTON
TAX INCREMENT FINANCING REINVESTMENT ZONE NO. 1
GENERAL VALUE INCREASE, $M
YEARVALUE
VALUEBASE VALUEINCREASE
201080.280.2-
201178.680.2(1.6)
201281.080.20.8
201384.280.24.0
201487.680.27.4
201589.480.29.2
201691.180.210.9
201793.080.212.8
201894.880.214.6
201996.780.216.5
202098.780.218.5
2021100.680.220.4
2022102.680.222.4
2023104.780.224.5
2024106.880.226.6
2025108.980.228.7
2026111.180.230.9
2027113.380.233.1
2028115.680.235.4
2029117.980.237.7
2030120.380.240.1
2031122.780.242.5
2032125.180.244.9
2033127.680.247.4
2034130.280.250.0
2035132.880.252.6
2036135.480.255.2
2037138.180.257.9
2038140.980.260.7
2039143.780.263.5
TOTAL143.780.263.5
*Increases based on City of Denton forecast through 2014. Beyond 2014 assumed
average of 2% / year increase.
TABLE 2
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FINANCE PLAN: EXHIBIT D -- Feasibility Analysis
CITY OF DENTON
TAX INCREMENT FINANCING REINVESTMENT ZONE NO. 1
CATALYST PROJECT VALUE INCREASE, $M
YEARABCDETOTALCUM.TOTAL
2010-------
2011-------
201210.0----10.010.0
2013------10.0
201410.0----10.020.0
2015------20.0
201615.0----15.035.0
2017-2.0--2.04.039.0
2018------39.0
20195.02.0--2.09.048.0
2020--2.0--2.050.0
2021-2.0--2.04.054.0
20225.0-2.03.0-10.064.0
2023-2.0--2.04.068.0
2024--2.03.0-5.073.0
20255.02.0--2.09.082.0
2026--2.03.0-5.087.0
2027-2.0--3.05.092.0
20285.0-2.03.0-10.0102.0
2029-2.0---2.0104.0
2030--2.03.0-5.0109.0
2031------109.0
2032--2.03.0-5.0114.0
2033------114.0
2034--2.03.0-5.0119.0
2035------119.0
2036---3.0-3.0122.0
2037------122.0
2038---3.0-3.0125.0
2039------125.0
TOTAL55.014.016.027.013.0125.0125.0
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
YEARCUM.
VALUEVALUE
2010--
20113.03.0
20121.54.5
20131.56.0
20141.57.5
20152.09.5
20162.011.5
20172.013.5
20182.015.5
20192.017.5
20202.520.0
20212.522.5
20222.525.0
20232.527.5
20242.530.0
20253.033.0
20263.036.0
20273.039.0
20283.042.0
20293.045.0
20303.548.5
20313.552.0
20323.555.5
20333.559.0
20343.562.5
20354.066.5
20364.070.5
20374.074.5
20384.078.5
20394.082.5
TOTAL82.582.5
14
FINANCE PLAN: EXHIBIT D -- Feasibility Analysis
TABLE 4
CITY OF DENTON
TAX INCREMENT FINANCING REINVESTMENT ZONE NO. 1
CUMULATIVE TOTAL VALUE INCREASE, $M
YEARGENERALCATALYSTOTHERTOTAL
2010----
2011(1.6)-3.01.4
20120.810.04.515.3
20134.010.06.020.0
20147.420.07.534.9
20159.220.09.538.7
201610.935.011.557.4
201712.839.013.565.3
201814.639.015.569.1
201916.548.017.582.0
202018.550.020.088.5
202120.454.022.596.9
202222.464.025.0111.4
202324.568.027.5120.0
202426.673.030.0129.6
202528.782.033.0143.7
202630.987.036.0153.9
202733.192.039.0164.1
202835.4102.042.0179.4
202937.7104.045.0186.7
203040.1109.048.5197.6
203142.5109.052.0203.5
203244.9114.055.5214.4
203347.4114.059.0220.4
203450.0119.062.5231.5
203552.6119.066.5238.1
203655.2122.070.5247.7
203757.9122.074.5254.4
203860.7125.078.5264.2
203963.5125.082.5271.0
TOTAL63.5125.082.5271.0
15
FINANCE PLAN: EXHIBIT D -- Feasibility Analysis
TABLE 5
CITY OF DENTON
TAX INCREMENT FINANCING REINVESTMENT ZONE NO. 1
CITY
YEARTOTAL REAL
PROPERTY VALUE CONTRIBUTION INCOME TO
INCREASE, $MTO TIF, $K*CITY, $K
2010---
20111.4--
201215.310-
201320.0106-
201434.9138-
201538.7241-
201657.425413
201765.337620
201869.142823
201982.045324
202088.553728
202196.954961
2022111.460267
2023120.069277
2024129.674583
2025143.780589
2026153.989299
2027164.1955106
2028179.41,019113
2029186.71,114124
2030197.61,159129
2031203.51,159204
2032214.41,193211
2033220.41,257222
2034231.51,292228
2035238.11,357240
2036247.71,396246
2037254.41,452256
2038264.21,492263
2039271.01,549273
2040-1,589280
TOTAL271.024,8113,479
* Based on 2010tax 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. 1
CITY
YEARTOTAL REAL INCOME TO
PROPERTY VALUE BUSINESS PERSONAL CITY, $K**
INCREASE, $MPROPERTY
VALUE
%INCREASE, $M
2010----
20111.4400.6-
201215.3396.04
201320.0387.641
201434.93712.952
201538.73613.989
201657.43520.196
201765.33422.2139
201869.13322.8153
201982.03226.2157
202088.53127.4181
202196.93029.1189
2022111.43033.4201
2023120.03036.0230
2024129.63038.9248
2025143.73043.1268
2026153.93046.2297
2027164.13049.2319
2028179.43053.8339
2029186.73056.0371
2030197.63059.3386
2031203.53061.1409
2032214.43064.3421
2033220.43066.1444
2034231.53069.5456
2035238.13071.4479
2036247.73074.3492
2037254.43076.3512
2038264.23079.3526
2039271.03081.3547
2040---561
TOTAL271.03081.38,607
*Estimated Business Personal Property & Inventory value for 2010 is $29.9 million, 39.1% of real property value. To
be conservative this percentage was reduced from 40% to 30% over the next 11 years. This value was 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
YEARINCOME FROM INCOME TO CITY TOTAL
INCOME FROMNEW BUSINESSSUBTOTAL FROM BASEINCOME TO
NEW REAL PERSONAL INCOME FROM REAL AND BPP CITY, $K
PROPERTY TAX , PROPERTY TAX, NEW VALUES, VALUES, $K*
$K$K$K
2010---759759
2011---759759
2012-4759763
4
2013-41 41759800
2014-52 52759811
2015-89759848
89
2016 1396 109759868
2017159759918
20139
2018 23153 176759935
2019181759940
24157
2020209759968
28181
2021 61189 2507591,009
20222687591,027
67201
2023 77230 3077591,066
20243317591,090
83248
2025 89268 3577591,116
20263967591,155
99297
20274257591,184
106319
2028 113339 4527591,211
20294957591,254
124371
2030 129386 5157591,274
20316137591,372
204409
2032 211421 6327591,391
2033 222444 6667591,425
20346847591,443
228456
2035 240479 7197591,478
20367387591,497
246492
2037 256512 7687591,527
20387897591,548
263526
2039 273547 8207591,579
2040 280561 8417591,600
TOTAL12,08623,52935,615
3,4798,607
* Based on 2010 real property value and 2009 business personal property & inventory
value.
18
FINANCE PLAN: EXHIBIT D -- Feasibility Analysis
SECTION V: EXHIBITS
19
FINANCE PLAN: EXHIBIT D-- Feasibility Analysis
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EXHIBIT VI
25