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HomeMy WebLinkAboutTax - 2010 - 04/12CITY OF ALLEN AGENDA CITY OF ALLEN TAX INCREMENT FINANCING ZONE NO. 1 BOARD OF DIRECTORS CALLED MEETING APRIL 12, 2010 —10:00 A.M. THIRD FLOOR CONFERENCE ROOM ALLEN CITY HALL 305 CENTURY PARKWAY ALLEN, TEXAS75013 Call to Order and Announce a Quorum is Pressrd. Approve Minutes of the September 21, 2009, Meeting. Consider a Recommendation to City Council to Authorize Payments from the TIF Fund pursuant to the Amended and Restated Development Agreement Relating to the Allen Tax Increment Financing Zone No. 1 and Being Contingent Upon Completion of Certain Development Items Within the Agreement. Adicurrimard This notice was posted at Allen City Hall, 305 Century Parkway, Allen, Texas, at a place convenient and readily accessible to the public at all times. Said notice was posted on Thursday, April 8, 2010, at 5:00 p.m. Shelley B. George, City Secretary Allen City Hall is wheelchair accessible. Access to the building and special parking are available at the entrance facing Century Parkway. Requests for sign interpreters or special services must be received forty-eight (48) hours prior to the meeting time by calling the City Secretary at 214-5094105. ALLEN CIVIC PLAZA • 305 CENTURY PARKWAY • ALLEN, TEXAS 75013 214.509.4100 EMAIL. coa@cityofalIm.org REINVESTMENT ZONE #1 BOARD AGENDA COMMUNICATION AGENDA DATE: April 12, 2010 SUBJECT: Consider a Recommendation to the City Council to Approve Payments from the TIF Fund personal to the Amended and Restated Development Agreement Relating to the Allen Tax Increment Financing Zone No. 1 and consideration of forme payments to Trademark being contingent upon completion of certain development items within the Agreement. STAFF RESOURCE: Peter H. Vargas, City Manager Kevin Hammeke, Finance Director PREVIOUS CITY COUNCIL ACTION: On September 27, 2005, the City Council adopted Resolution No. 2440-9-05(R) calling for a public hearing to be held on December 13, 2005, relating to the establishment of TIF Reinvestment Zone No. 1 (Garden District). On December 13, 2005, the City Council held a public hearing and passed Ordinance No. 2471-12- 05 that created Reinvestment Zone No. I (Garden District). On March 14, 2006, the City Council adopted Resolution No. 2494-3-06(R) appointing the initial TIF Board of Directors for TIF Reinvestment Zone No. 1 (Garden District). On November 27, 2007, the City Council approved the Final Project and Financing Plan for Reinvestment Zone #1. On November 27, 2007, the City Council approved an Amended and Restated Development Agreement relating to Reinvestment Zone #1. On February 27, 2008, the City Council adopted Resolution No. 2596-2-07(R) reappointing certain TIF Board members for TIF Reinvestment Zone No. 1. Reinvestment Zone#1 Board 04/122010 Agenda Consider authonvng Payments horn the TIF Fund pursmnt to TF #1 Agreement Page 2 On September 22, 2009, the City Council approved a TIF payment in the amount of $516,714 to Trademark and $53,050 to the City for administrative and legal costs. PREVIOUS TIF #1 BOARD ACTION: On October 24, 2007, the TIF #1 Board adopted the Final Project and Financing Plan for TIF Reinvestment Zone No. 1. On September 21, 2009, the TIF #1 Board recommended approval of a TIF payment to the City Council in the amounts of $516,714 to Trademark and $53,050 to the City. ACTION PROPOSED: Consider a Recommendation to the City Council to Approve Payments from the TIF Fund pursuant to the Amended and Restated Development Agreement Relating to the Allen Tax Increment Financing Zone No. 1 and consideration of future payments to Trademark being contingent upon completion of certain development items within the Agreement. BACKGROUND On September 1, 2005, the City received a TIF petition from Emerson Partners, Inc. for the redevelopment of the Montgomery Farm Garden District area through the use of Tax Increment Financing (TIF). The overall Tax Increment Financing Reinvestment Zone encompasses approximately 113 acres at the southwest comer of Bethany Drive and US 75. The City created the TIF Zone at the December 13, 2005 City Council meeting. In the Fall 2007, the City, Montgomery Farms Garden District Ltd., and Coventry II DDR/Trademark Montgomery Farms (Trademark) entered into an Amended and Restated Development Agreement (Agreement) that addressed issues related to the inclusion of Trademark in the TIF development. Since then, Trademark has been developing the eastern portion of the TIF and received a TIF payment in the Fall of 2009. On March 16, 2010, the City received a request from Trademark for another distribution from the TIF Fund. When the TIF Board recommended a TIF payment to Trademark at their meeting of September 21, 2009, the motion included language that future TIF payments would be contingent upon Trademark completing the development items pursuant to the Amended and Restated Development Agreement. More specifically, the development items were related to the parking garages and the Right -of -Way dedication as indicated in Attachment 3. Mnvestment Zone #1 Board 04/12/2010 Agenda Consider authori ong Payments from the TIF Fund pumant to T1F #1 Agreement Page 3 Attachment 1 reflects the current status of the TIF Fund with proposed deductions for City administration costs, legal expenses, and a payment to Trademark. The County property tax mcrement of $137,718 has not been received by the City and it is recommended that the payment to Trademark be reduced by this amount until the City receives the County payment. Attachment 2 reflects the proposed payment to Trademark being appropriated between the City and County participation. The County participation is initially restricted to the priority projects such as the ramp reversal. Therefore, the proposed $596,991 payment to Trademark would be allocated as $137,718 towards the ramp reversals and $459,273 towards the parking spaces. A proposed payment to the City in the amount of $16,920 represents administrative costs of $15,000 for FY10 and legal expenses of $1,920. Staff recommends that Trademark present information concerning the status of the contingent items from the last TIF Board meeting. If the status of the contingent items are moving forward, then staff recommends that the TIF Board recommend to the City Council the approval of a payment to Trademark from the TIF Fund in the amount of $459,273 from the City tax increment, $137,718 from the County tax increment upon receiving the county payment, and a payment to the City from the TIF Fund in the amount of $ I6,920 for administration and legal expemses and to inform Trademark that future payments shall be contingent upon Trademark completing the development items pursuant to the Amended and Restated Development Agreement. BUDGETARYIMPACT The TIF Fund has adequate funds available for the payments and will result in $50,000 remaining as a fund balance pursuant to the Agreement. I C011 DNI I make a motion to recommend to the City Council the approval of a payment to Trademark from the TIF Fund in the amount of $459,273 from the City tax increment, $137,718 from the County tax increment upon receiving the county payment, and a payment to the City from the TIF Fund in the amount of $16,910 for administration and legal expenses and to inform Trademark that fulure payments shall he contingent upon Trademark completing the development items pursuant to the Amended and Restated Development Agreement ATTACHMENT Attachment 1 — TIF Fund Status Attachment 2 — City and County TIF Reunbursement allocations Attachment 3 — Development Issues or Items needing to be completed Tif #1 Watters Creek/Montgomery Farms REVENUES Sales Tax - City Increment Property Tax - City Increment Property Tax - County Increment Investment Earnings Total Revenues EXPENDITURES Developers Reimbursements Administration Expenses FY08 Administration Expenses Legal Expenses Total Expenditures Revenues Over/(Under) Expenditures ` Sales tax through January 2010 ATTACHMENT 1 2008 2009 2010 Total 99,942 260,446 97,097 • 457,485 41,801 181,113 315,189 538,203 18,385 79,036 137,718 235,139 490 1,764 2,254 160,618 522,459 550,004 1,233,081 - 516,714 596,991 1,113,705 15,000 15,000 - 15,000 15,000 30,000 188 22,268 1,920 24,376 188 568,982 613,911 569,170 160,430 (46,523) (63,907) 50,000 / - « ( - } �- $ X222 22 }} . § ! $MEit ATTACHMENT 3 TIF #1 Watters Creek I Montgomery Farms The following is a list of Retail Phase I -A Development Issues or items needing to be completed pursuant to the Amended and Restated Development Agreement prior to future payments being approved. 1. Parking Structures. The Parking Structures shall be designed and constructed to conform to the Allen land Development Code applicable to construction of Parking Structures on the Land, and all exposed facades shall be a minimum of fifty percent (50%) brick (with the remaining fifty percent (50%) brick, air or glass) without exposed cables and metal traffic barriers, unless otherwise approved by the City Council. 2. Right -of -Way Dedication; Trademark shall, without cost to the City, by plat or separate instrument reasonably acceptable to the City, dedicate 20 feet of street right-of-way with an additional 10 foot utility/pedestrian easement at the time of the Commencement of Construction of Retail Phase I for the future widening of US Highway 75 to facilitate eight (8) main lanes (4 in each direction) plus 2 HOV lanes (one in each direction) and a minimum of three (3) lanes of frontage road in each direction (collectively the 'ROW"). The required dedication for the ROW may be modified with a Texas Department of Transportation approved schematic and right-of-way map illustrating the ultimate configuration of US Highway 75 with the prior written consent of the CityCouncil.