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HomeMy WebLinkAboutO-4157-5-25ORDINANCE NO. 4157-5-25 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, DESIGNATING A CERTAIN AREA WITHIN THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, AS CITY OF ALLEN, TEXAS REINVESTMENT ZONE NO. FIVE (“HOTEL AND CONVENTION CENTER ZONE”); ESTABLISHING THE BOUNDARIES OF SUCH ZONE; CREATING A BOARD OF DIRECTORS FOR SAID REINVESTMENT ZONE AND OTHER MATTERS RELATED THERETO; CONTAINING FINDINGS; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council desires to promote the development or redevelopment of a certain geographic area within its jurisdiction by the creation of a tax increment reinvestment zone, as authorized by the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code (the “Act”); and, WHEREAS, in compliance with the Act, the City called a public hearing to receive public comments on the creation of the proposed City of Allen, Texas Reinvestment Zone No. Five (the “Reinvestment Zone”) and its benefits to the City and the property in the proposed Reinvestment Zone; and, WHEREAS, in compliance with the Act, notice of the public hearing was published in a paper of general circulation in the City, such publication date being not later than seven (7) days prior to the date of the public hearing; and, WHEREAS, such hearing was convened at the time and place mentioned in the published notice, to wit, on the 27th day of May 2025, at 7:00 p.m., at the Council Chambers in the City Hall of the City of Allen, Collin County, Texas, which hearing was then closed; and, WHEREAS, the City, at such hearing, invited any interested person, or the person's representative, to appear and speak for or against the creation of the Reinvestment Zone, the boundaries of the proposed Reinvestment Zone, as described in Exhibit “A” attached hereto, and as depicted in the map attached hereto as Exhibit “B”, whether all or part of the territory described in Exhibit “A” and as depicted in Exhibit “B” should be included in such proposed Reinvestment Zone, the concept of tax increment financing, and the appointment of a Board of Directors for the proposed Reinvestment Zone; and, WHEREAS, all owners of property located within the proposed Reinvestment Zone and other interested persons were given the opportunity at such public hearing to protest the creation of the proposed Reinvestment Zone; and, WHEREAS, the City has prepared and reviewed a preliminary reinvestment zone financing and project plan attached hereto as Exhibit “C”. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, THAT: SECTION 1. The facts and recitations contained in the preamble of this Ordinance are hereby found and declared to be true and correct. SECTION 2. The City Council, after conducting such hearing and having heard such evidence and testimony, has made the following findings and determinations based on the evidence and testimony presented to it: Ordinance No. 4157-5-25, Page 2 (a) That the public hearing on adoption of the Reinvestment Zone has been properly called, held and conducted and that notice of such hearing has been published as required by law. (b) That the Reinvestment Zone meets the criteria for the creation of a reinvestment zone as set forth in the Act in that it is a geographic area located wholly within the corporate limits of the City and the area meets the criteria set forth in the Act for designation as a reinvestment zone under Tax Code Section 311.005. (c) That the proposed improvements in the Reinvestment Zone will significantly enhance the value of all taxable real property in the Reinvestment Zone and will be of general benefit to the City, and the area meets the requirements of Tax Code Section 31l.005. (d) That the Reinvestment Zone is predominantly open or undeveloped and, because of obsolete platting, deterioration of structures or site improvements, or other factors, substantially impair or arrest the sound growth of the City. (e) That the total appraised value of taxable real property in the proposed Reinvestment Zone and in existing reinvestment zones does not exceed twenty-five percent (25%) of the total appraised value of taxable real property in the City and in the industrial districts created by the City. (f) That not more than thirty percent (30%) of the property in the Reinvestment Zone, excluding property that is publicly owned, is used for residential purposes. (g) That the development or redevelopment of the property in the proposed Reinvestment Zone will not occur solely through private investment in the reasonably foreseeable future. SECTION 3. The City hereby creates the Reinvestment Zone over the area described in Exhibit “A”, attached hereto, and as depicted in the map attached as Exhibit “B”, and such Reinvestment Zone shall hereafter be identified as “City of Allen, Texas Reinvestment Zone No. Five” (the “Hotel and Convention Center Zone” or “Reinvestment Zone No. Five”). SECTION 4. There is hereby established a Board of Directors for the Reinvestment Zone, which shall consist of at least five (5) but not more than fifteen (15) members, unless more members are required to be appointed to satisfy the requirements of Section 311.009, Tax Code. The Board of Directors of Reinvestment Zone No. Five shall be appointed as follows: (a) The City shall be entitled to appoint a minimum of five (5) and a maximum of ten (10) members of the Board of Directors, except that if there are fewer than five (5) directors appointed by taxing units other than the City, the City Council may appoint more than ten (10) members as long as the total membership of the Board of Directors does not exceed fifteen (15) members. The City Council shall appoint its initial members to the Board of Directors within sixty (60) days after passage of this Ordinance. The seats on the Board of Directors shall be designated by place number (e.g. Director Place 1, Director Place 2, Director Place 3, etc.). Positions or Places 1-5 are reserved for the City. (b) Each member of the Board of Directors shall be a resident of the county in which the Reinvestment Zone is located or a county adjacent to that county, or shall own real property in the Reinvestment Zone, whether the individual resides in the county in which the Reinvestment Zone is located or a county adjacent to that county. (c) Each taxing unit other than the City that that levies taxes on real property in the Reinvestment Zone may appoint one member of the Board of Directors if the taxing unit has approved the Ordinance No. 4157-5-25, Page 3 payment of all or part of the tax increment produced by the taxing unit into the tax increment fund for the Reinvestment Zone. A taxing unit eligible to appoint a member to the Board of Directors may waive such right. If a taxing unit waives its right to appoint a member of the board, the City may appoint a member to the Board of Directors to such position. The governing body of each taxing unit, other than the City, eligible to appoint a member to the Board of Directors shall appoint such member within sixty (60) days after such taxing unit has entered into an agreement with the City for payment of all or part of the tax increment produced by such taxing unit into the tax increment fund for the Reinvestment Zone. Failure of such taxing unit to appoint a director within such sixty (60) day period shall be deemed a waiver of the right to appoint a Board of Director, and the City Council shall be entitled to appoint a person to such position. (d) A vacancy on the Board of Directors shall be filled as set forth in the Act. (e) The terms of the Board members shall be two years. To provide for staggered terms, the initial Board of Directors appointed to odd-numbered positions shall be appointed for two-year terms, while the initial Board of Directors appointed for even-numbered positions shall be appointed for one-year terms. All subsequent appointments shall be for terms of two years. Each year, the City Council shall designate a member of the Board of the Directors to serve as Chairperson of the Board of Directors. The Chairperson shall serve a term of office of one year that runs from January 1 through and including December 31 of the calendar year. The Board of Directors shall elect from its members a Vice-Chairperson and other officers, as it deems appropriate. (f) The Board of Directors shall make recommendations to the City Council concerning the administration of the Reinvestment Zone. The Board of Directors shall prepare and adopt a project plan and Reinvestment Zone financing plan for the Reinvestment Zone and must submit such plans to the City Council for its approval. The City Council delegates to the Board of Directors all powers necessary to prepare and implement the project and Reinvestment Zone financing plans for the Reinvestment Zone (the “Project and Financing Plan”), including any required annual reports on the status of the Reinvestment Zone, all subject to the approval of the City Council. The Board of Directors may not enter into any agreements to implement the Project and Financing Plan. SECTION 5. The Reinvestment Zone shall take effect on the adoption of this Ordinance, and the termination of the Reinvestment Zone shall occur on December 31, 2065, or at an earlier time designated by subsequent Ordinance of the City Council, or at such time, subsequent to the issuance of any tax increment bonds, if any, that all project costs, tax increment bonds, notes or other obligations of the Reinvestment Zone, and the interest thereon, if any, have been paid in full. SECTION 6. The Tax Increment Base for the Reinvestment Zone is the total appraised value of all taxable real property located in the Reinvestment Zone, as of January 1, 2025, the year in which the Reinvestment Zone was designated as a tax increment financing reinvestment zone (the “Tax Increment Base”). Tax Increment means the amount of property taxes levied and collected by the City and by a Taxing Unit for that year on the captured appraised value of real property taxable by the City and Taxing Unit located in the Reinvestment Zone. Captured Appraised Value means the total appraised value of all real property taxable by the City and a Taxing Unit located in the Reinvestment Zone for a tax year less the Tax Increment Base of the City and the Taxing Unit (the “Captured Appraised Value”). For purposes of this Ordinance, “Taxing Unit” means the Allen Independent School District, Collin County, Collin County Community College District, and any other political subdivision or special district that taxes real property within the Reinvestment Zone that enters into an agreement with the City for the payment of all or part of the Tax Increment produced by such other taxing unit into the Tax Increment Fund for the Reinvestment Zone. EXHIBIT “A” BOUNDARY DESCRIPTION OF THE ZONE TRACT 1: BEING a tract of land situated in the John W. Roberts Survey, Abstract No. 762, City of Allen Collin County, Texas, being a part of those same tract of land as described in Warranty Deed to the Wines Property Trust recorded under Clerk’s File No. 20130401000423000 in the Deed Records of Collin County, Texas (DRCCT) and being more particularly described as follows: BEGINNING at a 5/8-inch iron rod set with plastic cap stamped ‘Sparr Surveys’ at the intersection of the west line of Stacy Road (variable width right-of-way) as described by deed to the City of Allen recorded in Volume 4674, Page 2594 DRCCT, with the southeast line of State Highway No. 121 (controlled access highway) as described by deed to the State of Texas recorded in Volume 4635, Page 1629 DRCCT; THENCE in a southeasterly direction along the west line of said Stacy Road the following: South 25 Degrees 18 Minutes 44 Seconds East, 225.25 feet to a 5/8-inch iron rod set with plastic cap stamped ‘Sparr Surveys’; South 26 Degrees 56 Minutes 57 Seconds East, 227.44 feet to a 5/8-inch iron rod set with plastic cap stamped ‘Sparr Surveys’ at the point of curvature of a non-tangent circular curve to the left having a radius of 1460.00 feet; Southeasterly along said curve to the left, through a central angle of 09 Degrees 22 Minutes 37 Seconds, an arc distance of 238.94 feet and having a chord which bears South 30 Degrees 50 Minutes 25 Seconds East, 238.68 feet to a 5/8-inch iron rod set with plastic cap stamped ‘Sparr Surveys’ at a point on non-tangency; South 34 Degrees 41 Minutes 04 Seconds East, 85.96 feet to a 5/8-inch iron rod found with plastic cap stamped ‘RPLS 5587’ at the northeast comer of Tract 1 as described in Special Warranty Deed to P. Bush Elkin Property Company - 1101 CR 149, LLC recorded under Clerk’s File No. 20130809001126880 DRCCT; THENCE South 89 Degrees 23 Minutes 11 Seconds West, departing the west line of said Stacy Road, along the north line of said P. Bush Elkin tract, 406.37 feet to a 5/8-inch iron rod found with plastic cap stamped ‘RPLS 5587’ at the northwest comer of said P. Bush Elkin tract, same being the northeasterly corner of a tract of land as described in Special Warranty Deed to P. Bush Elkin Property Company, Ltd. recorded in Volume 3988, Page 1722 DRCCT; THENCE South 89 Degrees 13 Minutes 13 Seconds West, along the north line of said P. Bush Elkin, Ltd. tract, 1593.61 feet to a ‘PK’ nail with washer stamped ‘Sparr Surveys’ set in the southeast line of said State Highway No. 121; THENCE in a northeasterly direction along the southeast line of said State Highway No. 121 the following: North 64 Degrees 29 Minutes 41 Seconds East, 50.41 feet to a brass TXDOT monument found; North 68 Degrees 38 Minutes 12 Seconds East, 899.12 feet to a brass TXDOT monument found; North 61 Degrees 18 Minutes 37 Seconds East, 330.16 feet to a brass TXDOT monument found; North 64 Degrees 35 Minutes 59 Seconds East, 474.47 feet to a brass TXDOT monument found at the northwest end of a corner clip at the intersection of the southeast line of said State Highway No. 121 with the west line of said Stacy Road; EXHIBIT “A” BOUNDARY DESCRIPTION OF THE ZONE Ordinance No. 4157-5-25, Page 6 THENCE South 78 Degrees 32 Minutes 00 Seconds East, along said comer clip, 24.97 feet to a brass TXDOT monument found; THENCE North 64 Degrees 35 Minutes 41 Seconds East, continuing along said corner clip, 4.01 feet to the POINT of BEGINNING and CONTAINING 15.165 acres of land. TRACT 2: BEING a 108.3248 acre tract of land located in the John W. Roberts Survey, Abstract Number 762 and the H. Seaborn & Robert T. Clements Survey, Abstract No. 879, City of Allen, Collin County, Texas, said 108.3248 acre tract being a portion of a called 129.370 acre tract of land conveyed to P. BUSH ELKIN PROPERTY COMPANY, LTD., by Special Warranty Deed recorded in Volume 3988, Page 1722, Official Public Records, Collin County, Texas (O.P.R.C.C.T.), said 108.3248 acre tract also being a portion of a called 7.9154 acre tract of land conveyed to P. BUSH ELKIN PROPERTY COMPANY, LTD., by Special Warranty Deed recorded in Volume 5449, Page 10014, O.P.R.C.C.T, said 108.3248 acre tract further being all of a called 5.015 acre tract of land, identified as “TRACT 1” and being conveyed to P. BUSH ELKIN PROPERTY COMPANY – 1101 CR 149, LLC, by Special Warranty Deed recorded in Instrument Number (Ins. No.) 20130809001126880, O.P.R.C.C.T., said 108.3248 acre tract being herein more particularly described by metes and bounds as follows: BEGINNING at a 5/8-inch iron rod with cap stamped “SPOONER 5922” set on the west property line of the said 129.370 acre tract, said beginning point being the most westerly northwest property corner of a called 7.45 acre tract of land, identified as “TRACT 1,” and conveyed to the City of Allen for the public right-of-way of Ridgeview Drive by deed recorded in Ins. No. 20110915000981230, O.P.R.C.C.T., said beginning point also being on the east property line of a called 0.828 acre tract of land conveyed to the City of Allen for the public right-of-way of said Ridgeview Drive by deed recorded in Ins. No. 20121221001634200, O.P.R.C.C.T., said beginning point being located North 00°39’33” West, 115.88 feet from the original southwest property corner of the said 129.370 acre tract, said beginning point also having a NAD83 GRID coordinate of N:7,098,935.99, E:2,520,484.03; THENCE North 00°39’33” West, along the said west property line of the 129.370 acre tract and along the said east property line of the 0.828 acre tract, at a distance of 25.06 feet passing a 5/8 -inch iron rod found at the southeast lot corner of Lot 2R, Block X, The Farm, being an addition to the City of Allen, Collin County, Texas according to the plat thereof filed for record in Ins . No. 22024010000078, O.P.R.C.C.T., and continuing along the said west property line of the 129.370 acre tract and along the east lot line of said Lot 2R, at a distance of 1,025.69 feet passing a 5/8-inch iron rod with cap stamped “SPOONER 5922” found at the northeast lot corner of said Lot 2R, same being the southeast lot corner of Lot 1R, Block N, of said plat of The Farm, and continuing along the said west property line of the 129.370 acre tract and along the east lot line of said Lot 1R, at a distance of 2,526.36 feet passing a Texas Department of Transportation monument found at the northeast lot corner of said Lot 1R, same being the most easterly southeast property corner of a called 0.9197 acre tract of land conveyed to the State of Texas by deed recorded in Volume 5263, Page 3744, O.P.R.C.C.T., and continuing along the said west property line of the 129.370 acre tract and along the east property line of the said 0.9197 acre tract, in all a total distance of 2,536.59 feet to a 5/8- inch iron rod with cap stamped “SPOONER 5922” set at the northwest property corner of the said 129.370 acre tract, said iron rod set being the most easterly northeast property corner of the said 0.9197 acre tract and being on the south property line of a called 11.327 acre tract of land conveyed to the State of Texas by deed recorded in Volume 4635, Page 1629, O.P.R.C.C.T., said iron rod set being on the existing south right- of-way line of State Highway 121, being a variable width State controlled right -of-way, and in the approximate centerline of County Road 149, being an unimproved County right-of-way with no deed of record found; EXHIBIT “A” BOUNDARY DESCRIPTION OF THE ZONE Ordinance No. 4157-5-25, Page 7 THENCE North 89°13’08” East, along the north property line of the said 129.370 acre tract, along the said south property line of the 11.327 acre tract and along the said approximate centerline of County Road 149, at a distance of 22.59 feet passing a mag nail with washer stamped “SPARR RPLS 3701” found at the southwest property corner of a called 15.165 acre tract of land conveyed to Allen Economic Development Corporation by deed recorded in Ins. No. 2022000175461, O.P.R.C.C.T., and continuing along the said north property line of the 129.370 acre tract, along the said south property line of the 11.327 acre tract and along the said approximate centerline of County Road 149, in all a total distance of 1,616.20 feet to a 5/8- inch iron rod with an illegible cap found at the northeast property corner of the said 129.370 acre tract, same being the northwest property corner of the said 5.015 acre tract; THENCE North 89°23’24” East, along the north property line of the said 5.015 acre tract, continuing along the said south property line of the 15.165 acre tract and continuing along the said approximate centerline of County Road 149, 406.48 feet to a 5/8-inch iron rod with cap stamped “RPLS 5537” found at the northeast property corner of the said 5.015 acre tract, same being the southeast property corner of the said 15.165 acre tract and further being on the southwest right-of-way line of Stacy Road (being a 120-feet wide public right-of-way at this point conveyed to the City of Allen by deeds recorded in Volume 4669, Page 1846, Volume 4674, Page 2595, Volume 4644, Page 2068 and Volume 4644, Page 2037 O.P.R.C.C.T.); THENCE along the said southwest right-of-way line of Stacy Road the following courses and distances: South 34°33’10” East, along the northeast property line of the said 5.015 acre tract, 341.51 feet to a 5/8-inch iron rod with cap stamped “RPLS 5587” found at the most easterly northeast property corner of the said 5.015 acre tract, said iron rod found being on the west property line of the said 7.9154 acre tract; North 03°44’01” East, along the said west property line of the 7.9154 acre tract, 2.32 feet to a 1/2- inch iron rod with cap stamped “WIER & ASSOC INC” found; South 34°40’04” East, 365.78 feet to a 5/8-inch iron rod with cap stamped “SPOONER 5922” set; South 33°01’53” East, 350.62 feet to a 5/8-inch iron rod found; South 34°52’31” East, 215.03 feet to a 1/2-inch iron rod with cap stamped “WIER & ASSOC INC” found at the north end of a right-of-way corner clip located at the northwest corner of the intersection of the said southwest right-of-way line of Stacy Road with the northwest right-of-way line of said Ridgeview Drive; THENCE along the said northwest right-of-way line of Ridgeview Drive the following courses and distances: South 10°36’48” West, along the said right-of-way corner clip, 27.23 feet to a 1/2-inch iron rod with cap stamped “WIER & ASSOC INC” found at the south end of the said corner clip; South 55°24’29” West, 204.94 feet to a 1/2-inch iron rod with cap stamped “WIER & ASSOC INC” found; South 51°41’12” West, 150.37 feet to a 1/2-inch iron rod with cap stamped “WIER & ASSOC INC” found; South 55°26’57” West, 277.69 feet to an “X” scribed in concrete found at the beginning of a non- tangent curve to the right having a radius of 1,865.00 feet; EXHIBIT “A” BOUNDARY DESCRIPTION OF THE ZONE Ordinance No. 4157-5-25, Page 8 Along said curve to the right, an arc length of 241.00 feet, and across a chord which bears South 59°07’26” West, a chord length of 240.83 feet to a 1/2-inch iron rod with cap stamped “WIER & ASSOC INC” found; South 62°51’15” West, 2,001.84 feet to an “X” scribed in concrete found at the beginning of a non- tangent curve to the right having a radius of 1,250.00 feet; Along said curve to the right, an arc length of 217.16 feet, and across a chord which bears South 67°49’44” West, a chord length of 216.89 feet to the POINT OF BEGINNING containing 108.3248 acres (4,718,630 square feet) of land. The bearings and distances recited herein are referenced to the Texas Coordinate System of 1983, Texas North Central Zone 4202, and are based on the North American Datum of 1983, 2011 Adjustment. All areas shown here are calculated based on surface measurements. EXHIBIT “B” DEPICTION OF THE REINVESTMENT ZONE Ordinance No. 4157-5-25, Page 9 EXHIBIT “C” PRELIMINARY REINVESTMENT ZONE PROJECT AND FINANCING PLAN Ordinance No. , Page 10 4902-8583-9895, v. 1 Project Plan and Financing Plan for Tax Increment Financing Reinvestment Zone Number Five, City of Allen, Texas Contents Page Section 1: Authority and Objectives Section 2: What Is Tax Increment Financing? Section 3: Reinvestment Zone Five Description Section 4: Financing Projects within the Zone Exhibits Exhibit A: Proposed TIF Zone Five Boundary Exhibit B: How Tax Increments Flow with Tax Increment Financing Exhibit C: Map Showing Existing Uses and Conditions EXHIBIT “C” PRELIMINARY REINVESTMENT ZONE PROJECT AND FINANCING PLAN Ordinance No. , Page 11 4902-8583-9895, v. 1 Section 1: Authority and Objectives Kalahari Resorts & Conventions is considering a potential expansion into the Dallas -Fort Worth market with a new location proposed for the 123 acres of land located at the southwest corner of State Highway 121 and Stacy Road in Allen (the "Property"). This project would include over one million square feet of resort and convention space, including at least 900 guest rooms, an indoor and outdoor waterpark, a convention center and a family entertainment center. The resort is anticipated to employ up to 1,000 people and is expected to include an investment of $950 million. Known as the creator of America’s Largest Indoor Waterparks, Kalahari operates full-service vacation, meeting and convention facilities in five states, including an existing location in the Austin suburb of Round Rock. This new project would significantly boost Allen’s economy and support the growth of the community primarily through sales taxes and hotel occupancy taxes paid by visitors. In addition to attracting out-of-town guests, Kalahari has proven to be a cherished amenity and valued partner in other communities where it operates. Locals can purchase day passes and season passes to enjoy waterpark amenities, and many of the resort’s entertainment and dining options are open to the public. Kalahari also partners with local organizations and initiatives to support community events, schools and charities. In connection with the proposed Kalahari Resorts & Convention expansion on the Property the Allen Economic Development Corporation, a Type A non-profit sales tax corporation, the City of Allen, Allen Community Development Corporation, a Type B non-profit sales tax corporation, and Kalahari Allen TX LLC executed that certain Economic Development Program Agreement effective as of February 25, 2025 (the “Economic Development Program Agreement”). Pursuant to Chapter 311 of the Texas Tax Code (the "Act"), the Allen City Council intends to designate City of Allen, Texas Reinvestment Zone Number Five also known as the “Hotel and Convention Center Zone” or “Reinvestment Zone No. Five”. This document is a project plan and financing plan for Reinvestment Zone No. Five, as mandated by the Act (the "Plan"). It forecasts annual cash flowing to a City account to be created for investments benefiting Reinvestment Zone No. Five and it sets a general plan for using cash dedicated to a tax increment fund created by the City and segregated from all other funds of the City (the "TIF Fund") for Reinvestment Zone No. Five to finance identified projects. The purpose and objectives for Reinvestment Zone No. Five is to facilitate the projects contemplated by the Economic Development Program Agreement to be exempt from public bid requirements, including the requirements in Texas Local Government Code Chapters 252 and 272, and to facilitate such development or redevelopment by financing the costs of public works, public improvements, programs, economic development grants, and other projects benefiting Reinvestment Zone No. Five, plus other costs incidental to those expenditures, all of which costs are authorized by the Act and for programs of economic development for the public purposes of developing and diversifying the economy, eliminating unemployment and underemployment, and developing or expanding transportation, business, and commercial activity in Reinvestment Zone No. 5, including programs to make grants and loans from the tax increment fund, in an aggregate amount not to exceed the amount of the tax increment produced by the City and paid into the tax increment fund for Reinvestment Zone for activities that benefit, and stimulate business and commercial activity in Reinvestment Zone No. 5 consistent with the powers of a municipality under Chapter 380, Local Government Code. Pursuant to Section 311.010(g) of the Act, the projects contemplated by the Economic Development Program Agreement are exempt from public bid requirements, including the requirements in Texas Local Government Code Chapters 252 and 272. As a large undeveloped tract of land fronting a major highway in North Texas, the Allen City Council has recognized the value of a successful commercial development in this area as a major driver of the City of EXHIBIT “C” PRELIMINARY REINVESTMENT ZONE PROJECT AND FINANCING PLAN Ordinance No. , Page 12 4902-8583-9895, v. 1 Allen Economic Development Strategy. The Property is currently undeveloped and does not have a residential component to date. EXHIBIT “C” PRELIMINARY REINVESTMENT ZONE PROJECT AND FINANCING PLAN Ordinance No. , Page 13 4902-8583-9895, v. 1 Exhibit A: Proposed TIF Zone Five Boundary Tax Parcel Identification within Proposed Zone Property ID Legal Description 2673929 Abstract A0762 John W Roberts Survey, Tract 2, 96.515 Acres 513527 Abstract A0762 John W Roberts Survey, Tract 1, 15.165 Acres 2673925 Abstract A0879 J Seaborn & R T Clements Survey, Tract 13, 6.8854 Acres 2944670 Abstract A0762 John W Roberts Survey, Tract 3, 5.0157 Acres EXHIBIT “C” PRELIMINARY REINVESTMENT ZONE PROJECT AND FINANCING PLAN Ordinance No. , Page 14 4902-8583-9895, v. 1 Section 2: What Is Tax Increment Financing? Tax increment financing (“TIF”) is a tool that cities or counties in Texas and most other states use to finance improvements within defined areas for which development or redevelopment of the property in the reinvestment zone will not occur solely through private investment in the reasonably foreseeable future. The Act authorizes municipalities to deposit real property tax derived from value added within a designated zone and other revenue generated by a zone to a TIF fund for promoting community enhancement and economic development. Texas cities have used tax increment financing since the mid-1980s. Although TIF zones were initially used to fund public improvements and little else, local authority and practice with TIF zones has broadened so that TIF now funds a wide range of improvements and related services to encourage community development. Exhibit B illustrates how tax increments flow with TIF. The illustration assumes a taxing entity has specified that a portion of annual tax increments will flow to a TIF fund and that the balance of annual tax increments will flow as usual for other public purposes. Once set, the portions of tax increments flowing to a TIF fund may not be reduced. Tax increments are calculated annually by multiplying a TIF zone’s taxable real property value growth since a base year ("Captured Appraised Value") by the relevant year’s tax rate and the percentage of value the taxing entity has committed to TIF. Texas requires the governing body of a city to approve a project plan and financing plan (typically a single document) for a TIF zone. Such plan must be approved by ordinance after review of the plan by a TIF board appointed by the governing body. Only after that approval may a city commit money from a TIF fund for a project. Fund commitments must be consistent with a project plan and financing plan for the TIF zone. A project plan and financing plan may be amended by ordinance. TIF zone boundaries may be expanded or reduced. State law prescribes rules for these changes. EXHIBIT “C” PRELIMINARY REINVESTMENT ZONE PROJECT AND FINANCING PLAN Ordinance No. , Page 15 4902-8583-9895, v. 1 Section 3: Existing Use and Conditions and Proposed Use The Property that compromises Reinvestment Zone No. Five is undeveloped and has no existing buildings. When fully built out, it will contain a resort, a convention center, an indoor and outdoor waterpark, and a family entertainment center that will collectively comprise an economic development project that will promote economic development within Reinvestment Zone No. Five. A. The following is a description and map showing existing uses and conditions of real property in Reinvestment Zone No. Five and proposed uses of that property: The Property within Reinvestment Zone No. Five is zoned agricultural and planned development. The current use of the Property is agricultural. The proposed use of the Property is a resort, convention center, and entertainment related business uses that create a desirable tourist attraction and amenity for residents of the City. Exhibit C Map Showing Existing Uses and Conditions B. The following are proposed changes of zoning ordinances, the master plan of the municipality, building codes, other municipal ordinances, and subdivision rules and regulations, if any, of the county, if applicable: EXHIBIT “C” PRELIMINARY REINVESTMENT ZONE PROJECT AND FINANCING PLAN Ordinance No. , Page 16 4902-8583-9895, v. 1 The Property will be zoned consistent with the Economic Development Program Agreement and a planned development zoning application. EXHIBIT “C” PRELIMINARY REINVESTMENT ZONE PROJECT AND FINANCING PLAN Ordinance No. , Page 17 4902-8583-9895, v. 1 Section 4: Financing Projects within the Zone (1) The following is a description of non-project costs: Non-project costs include costs not defined as a TIF project cost by the Act. These non-project costs will not be paid for or reimbursed from the TIF Fund for horizontal and vertical improvements. (2) The following is a statement of a method of relocating persons to be displaced, if any, as a result of implementing the plan: The property is currently unoccupied and used for agriculture. No persons will be displaced or relocated due to the creation of the Zone or implementation of this Plan. (3) The following is a statement listing the proposed kind, number, and location of all public works or public improvements to be financed by the zone (the "Project Costs"). The categories of public works and public improvements (the "Public Infrastructure") that are proposed are defined in the Economic Development Program Agreement required for the Property. All Public Infrastructure shall be designed and constructed in accordance with all applicable City standards and shall otherwise be inspected, approved, and accepted by the City. The improvements will be located within the Zone or adjacent to the Zone. The total Project Costs are as set forth in the Economic Development Program Agreement. The Project Costs for administration of the Zone by or on behalf of the City to administer the Zone are estimated to be an annual amount of $50,000. (4) The following is the result of the economic feasibility study: For purposes of this Plan, economic feasibility (the "Feasibility Study") was completed by the City in advance of approving the Economic Development Program Agreement. Based on the Feasibility Study, the economic feasibility of the Zone has been demonstrated. (5) The following is the estimated amount of bonded indebtedness to be incurred: No Bonded indebtedness is to be issued by the City that will be secured from the Tax Increment of the Zone. (6) The following is the estimated time when related costs or monetary obligations are to be incurred. Other than the annual administrative costs for the Zone No tax increment will be used for any project Costs of Reinvestment Zone No. Five. (7) The following is a description of the methods of financing all estimated project costs and the expected sources of revenue to finance or pay project costs, including the percentage of tax increment to be derived from the property taxes of each taxing unit anticipated to contribute tax increment to the zone that levies taxes on real property in the zone: There are no Project Costs to be financed by the Zone at this time. The following is the current total appraised value of taxable real property in the zone: EXHIBIT “C” PRELIMINARY REINVESTMENT ZONE PROJECT AND FINANCING PLAN Ordinance No. , Page 18 4902-8583-9895, v. 1 The base value of Reinvestment Zone No. Five is the total appraised value of taxable real property in the Zone as of January 1, 2025, according to Collin County (the "Tax Increment Base"). The Tax Increment Base is estimated to have an appraised value of $7,896,793 and a market value of $37,120,542. (8) The following is the estimated captured appraised value of the zone during each year of its existence: The estimated Captured Appraised Value during each year of the zone is zero because Reinvestment Zone No. Five is a zero participation TIRZ. (9) The following is the duration of the zone: Reinvestment Zone No. Five commences upon designation by the City Council and shall continue until December 31, 2065.