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2018-06-18 TIRZ NO. 2 MEETING AGENDATAX INCREMENT REINVESTMENT ZONE NUMBER TWO (TIRZ NO. 2), ALSO KNOWN AS SHADOW CREEK RANCH, CITY OF PEARLAND TEXAS REGULAR MEETING MONDAY, JUNE 18, 2018 J 4:00 P.M. CITY HALL ANNEX BUILDING 1 3523 LIBERTY DRIVE 1 COMMUNITY DEVELOPMENT CONFERENCE ROOM I. CALL TO ORDER AND ROLL CALL II. PURPOSE OF THE MEETING 1. Consideration and Possible Action — Regular Meeting Minutes of October 23, 2017, Tax Increment Reinvestment Zone Number 2 (TIRZ No. 2) Board of Directors Meeting. 2. Consideration and Possible Action a. Acknowledgement of service by Mike Pyburn to the Board. b. Elect Board Secretary. c. Appoint member to the Invoice Review Committee. 3. Consideration and Possible Action a. Financial Report for the Fiscal Year ending September 30, 2017. b. Financial Report for the period ending April 30, 2018. 4. Consideration and Possible Action — Investment Report for the Quarters Ending September 2017, December 2017, and March 2018. 5. Consideration and Possible Action — 2017 Annual Report. 6. Consideration and Possible Action — Ratification of invoices authorized for payment by the Invoice Review Committee and approving invoices presented for payment. 7. Consideration and Possible Action — Cancellation of LFA 04-07-001. 8. Consideration and Possible Action — Acknowledgement of the assignment of the right to TIRZ reimbursements from Shadow Creek Ranch Development Company, LP to SCRDC Liquidating Trust. 9. Consideration and Possible Action - Professional services agreement with McGrath & Co. to perform LFA agreed upon procedures reviews and interest calculations. 10. Consideration and Possible Action — Auditor's Report for completed LFA numbers 13-06-002 and 14-06- 001 and recommendation for reimbursements. 11. Consideration and Possible Action — Projection of future TIRZ Fund performance and payment of existing LFAs. 12. Consideration and Possible Action — Recommendation to City Council of Plan Amendment #4. 13. Discussion Item — Possible dates for next Board meeting. III. ADJOURN. Sue Darcy, Marsh Darc L.Partners, Inc. On Behalf of the Board In Accordance with the provisions of the Americans with Disabilities Act (ADA), persons in need of a special accommodation to participate in this proceeding shall, within three (3) days prior to any proceeding, contact the City Secretary's office at (281) 652-1840. All agenda supporting documents are available at www.oearlandtx.gov • I, Maria E. Rodriguez, Deputy City Secretary of the City of Pearland, Texas, do hereby certify that the foregoing public notice was posted in a place convenient to the general public at City Hall on the 14th day of June 2018 at 5:00 p.m. • Maria E. Rodriguez Deputy City Secretary Agenda removed day of June 2018. REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS 61. ANNUAL REPORT 2017 TABLE OF CONTENTS City of Pearland, Texas, City Council 3 TIRZ Board of Directors .. 4 Description of the Zone... . 5 Purpose of the Zone 6 State of the Zone and Plan Implementation in 2017 . 7 TABLES TABLE A. Taxing Entity Percent Participation .. 7 TABLE B Base Values by Jurisdiction 8 TABLE C. Revenue Fund Balance by Year 8 TABLE D Project Plan & Reinvestment Zone Financing Plan Budget 10 TABLE E. Outstanding Debt as of Fiscal Year End 11 TABLE F- Letter Finance Agreements Approved for Reimbursement . 13 APPENDICES Exhibit 1• Zone Boundary Map 16 Exhibit 2 Amended Zone Boundary Map . 17 COMPLIANCE Texas Tax Code Section 311.016 (a)• (1) 7 (2) . . 9 (3) 11 (4) 14 (5) .. 14 2 48 CITY OF PEARLAND, TEXAS CITY COUNCIL 2017 Council Members Mayor Hon. Tom Reid Mayor Pro-Tem Hon Derrick Reed, Position 2 Council Member Hon. Tony Carbone, Position 1 Hon. Gary Moore, Position 3 Hon Keith Ordeneaux, Position 4 Hon J David Little, Position 5 Hon Trent Perez, Position 6 Hon Woody Owens, Position 7 City Staff City Manager Clay Pearson Director of Finance Cynthia Pearson 3 49 REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS BOARD OF DIRECTORS 2017 Board Members Position 1 Vacant State Senator Designee Position 2 Thomas King State Representative Designee Position 3 Herb Fain, Jr., Chair City of Pearland Designee Position 4 Gary Cook, Vice Chair City of Pearland Designee Position 5 Kenneth R Phillips City of Pearland Designee Position 6 Jo Knight City of Pearland/Alvin Independent School District Designee Position 7 Mike Pyburn Alvin Independent School District Designee Position 8 Ali Hasanali Fort Bend County Designee Position 9 Larry Loessin Brazona County Designee 4 5 DESCRIPTION OF ZONE In accordance with the Tax Increment Financing Act (Chapter 311, Tax Code), Reinvestment Zone Number Two, City of Pearland, Texas (the Zone)was established by Ordinance 891 of the City Council of the City of Pearland (the City), Texas on December 21, 1998 The original Zone, also known as "Shadow Creek Ranch", consisted of 3,467 acres located in Brazoria County and Fort Bend County, Texas In addition, the Zone is located in Alvin I S D (AISD), Fort Bend I S D (FBISD) and a small portion in Pearland I S D (PISD) The original Zone is generally bounded by Clear Creek on the north, State Highway 288 on the east, Broadway (the extension of FM 518 west of S H 288) on the south and FM 521 on the west A map illustrating the original boundaries of the Zone follows on page 15 as Exhibit 1 On August 23, 1999, by Ordinance No 918 of the City, the Project Plan and Reinvestment Zone Financing Plan (the Project Plan)for the original TIRZ boundaries was adopted st 1 Plan Amendment On July 10, 2006, by Ordinance 1276 of the City, the Project Plan was amended and the Zone was expanded to provide for the annexation of 457 acres of vacant land, adjacent to the Zone 288 acres are in Brazoria County and 169 acres are in Fort Bend County. nd 2 Plan Amendment On November 13, 2006 by Ordinance 1312 of the City, the Project Plan was amended to provide for development of public improvements to serve Shadow Creek Ranch Town Center The proposed development is within the boundaries of the original Zone and Brazoria County rd 3 Plan Amendment On November 13, 2006 by Ordinance 1313 of the City, the Project Plan was amended and the Zone was expanded to provide for the annexation of 8+ acres to facilitate the improvement and widening of Broadway from S.H. 288 to F M 521 The boundaries of the annexed area are within Brazona County The Zone is now composed of 3,932+ acres, of which 3,125+ acres are within Brazoria County and 807+ acres are within Fort Bend County A map illustrating the boundaries of the Zone as expanded follows on page 16 as Exhibit 2. 5 51 PURPOSE OF ZONE The objective of the Zone is to facilitate quality mixed-use development with a self-sustaining tax base for the City and the other participating taxing entities The City Council, in adopting the ordinances creating and expanding the Zone, found that the development described in the Project Plan, and its subsequent amendments, would not likely occur, to the quality, standards and densities described in the Project Plan, but for the creation of the Zone The City Council further found that improvements in the Zone will significantly enhance the value of all taxable real property in the Zone and will be of general benefit to the City. The Zone will pursue its objective by acting as a financing vehicle for regional public improvements, as described in the Project Plan as amended. The methods of financing and the sources of funding available to the Zone, including the participation levels of the various participating entities, including the City, Brazona County, Fort Bend County and Alvin ISD, are described in the Project Plan and its amendments 6 52 STATE OF THE ZONE AND PLAN IMPLEMENTATION IN 2016 1. The information provided in this section is in accordance with § 311.016 (a) (1) of the Texas Tax Code, which requires inclusion of the amount and source of revenue in the tax increment fund established for the zone. In addition to the City's tax increment revenue, interlocal agreements with Brazona County, Fort Bend County and Alvin ISD provide for each taxing unit's participation in the Zone. The Project Plan also allows for the participation of Brazona Drainage District No 4 and Fort Bend Independent School District, though neither is currently participating Levels of participation are detailed in the Project Plan and current levels of participation are shown in Table A The zone is currently in its seventeenth year. TABLE A Taxing Entity Participation Taxing Entity Zone Years Participation City of Pearland 9 through 30 100% of taxes collected at current tax rate on Captured Appraised Value (1) Brazoria County 1 through 30 100% of taxes collected at current tax rate on Captured Appraised Value up to a tax rate of$.1359, or if rate is less than $ 1359 then 38% of actual tax rate. Fort Bend County 11 through 20 100% of taxes collected at current tax rate on Captured Appraised Value, up to a maximum tax rate of 468075(2) Alvin ISD 1 through 30 100% of taxes collected at current tax rate on Captured Appraised Value (3) (1) 64% to be repaid as an administrative cost,provided the TIRZ retain at least$255/$100 (2) In years 21 through 30 participation drops to 100% of 31205 (3) 75% to be used by AISD for the construction of educational facilities The obligations of the participating taxing jurisdictions, as defined in their respective interlocal agreements, include the timely deposit of tax increment into the City's tax increment revenue fund. Table B illustrates the growth in appraised value from base year to tax year 2017 for each participating jurisdiction Table C illustrates the amount of the incremental revenue, which has been transferred to the increment fund. These amounts are based upon actual taxes collected as of December 31, 2017 7 53 TABLE B Base Market Value by Jurisdiction (1) Taxing Entity Base Year Base Value 2017 Value (2) Captured Value Original Zone 1998 City of Pearland 7 172,980 2,243,875,455 2,236,702,475 Brazona County 4,143,160 1,840,896,784 1,836 753,624 Fort Bend County 3,029,820 431,527,610 428,497,790 Alvin ISD 4 143,160 1,765,726 384 1,761,583,224 1st Plan Amendment(3)(4) 2006 City of Pearland 4,381,680 190,978,368 186,596,688 Brazoria County 3 354 830 118,691 461 115,336,631 Fort Bend County 1,026,850 43,737,968 42,711,118 Overall Zone City of Pearland 2,434,853,823 2,423 299,163 Brazona County 1,959,588,245 1,952,090,255 Fort Bend County 475,265,578 471,208,908 Alvin ISD 1,902,527,191 1,761,583,224 (1) The information in this table was provided by the Brazona and Fort Bend County Appraisal Distncts and Assessments of the Southwest (2)Market value(less exemptions)as of January 1, 2017 (3)All of the land wrthrn the 2nd Plan Amendment(adopted in 2006)area is wthin the boundaries of the onginal Zone (4)All of the land within the 3rd Plan Amendment(adopted in 2006)area is either owned by a municipality or within dedicated ROWand thus tax exempt TABLE C City of Pearland TIRZ No. 2 Tax Increment Revenue & Fund Balance by Year -Current Year and Prior Five Years (1) Year 2012 2013 2014 2015 2016 2017 City of Pearland Revenue $ 10,280,251 $ 10,459,326 $ 12,326,867 $ 10,624,549 $ 14,362,791 $ 15,978,750 Rebate to City for Administrative Costs (2) $ (6,514,331) $ (6,677,117) $ (7,865,023) $ (6,803,968) $ (9,192,187) $(10,226,400) Brazona County Revenue $ 1,486,826 $ 1,499,782 $ 1,527,826 $ 1,674,994 $ 1,809,824 $ 2,089,520 Alvin ISD Revenue (3) $ 4,112,895 $ 4,160,862 $ 4,167,334 $ 4,933,323 $ 5,159,693 $ 6,015,299 Other Revenue $ 2,532,291 $ 1,310,196 $ 1,348,416 $ 1,476,931 $ 1,663,842 $ 1,993,467 Fort Bend County Revenue $ 432,546 $ 505,394 $ 725,795 $ 929,041 $ 1,339,271 $ 1,611,047 Expenditures for Zone Administration $ (16,767) $ (24,122) $ (16,427) $ (22,208) $ (19,986) $ (37,912) Transfers to Development Authonty $(12,016,051) $(10,997,930) $(11,494,978) $(12,666,896) $(14,572,487) $(15,977,530) Fund Balance (4) $ 2,127,904 $ 2,332,457 $ 2,999,404 $ 2,510,500 $ 3,784,026 $ 3,863,404 (1) Source City of Pearland, Texas Fund balances as of 12/31 of each year (2) Rebate for admin costs pnor to 2007 is 36% In 2007 the rebate increased to 64% (3)Note that Alvin ISD revenue is reported net of the 75% rebate to Alvin ISD (4) In addition to fund balance, as of 12/31/17, AISD had$2,302,819 16 in the suspense account. 8 01 2. The information provided in this section is in accordance with §311.016 (a) (2) of the Texas Tax Code, which requires inclusion of the amount and purpose of expenditures from the fund The Board of Directors of the Zone has been granted by City Council, in accordance with Section 311.010 of Texas Tax Code, the power to administer, manage, and operate the Zone and to implement the Project Plan. The Zone was created for the duration of 30 years, or until dissolved by the City The total cost of the public improvements within the Zone, as outlined in the original Project Plan, amounts to $294,482,034 Of this amount, the City will fund $35,471,061 worth of improvements, and the Texas Department of Transportation (TxDOT) will fund another $10,277,050 worth of improvements The Zone will fund the remaining improvements, which amounts to a cost of$248,733,923, unadjusted for inflation. 1st Plan Amendment The original list of project costs was amended with the approval of the 1st Plan Amendment, which included improvements, estimated to total $34,724,218. These improvements address the water, wastewater, storm sewer, lakes channels, roads and landscaping costs for the 457+ acre annexation 2nd Plan Amendment The list of project costs was amended again with the approval of the 2nd Plan Amendment, which included improvements estimated to total $11,749,618 These improvements address major road infrastructure, detention, drainage, landscaping and the relocation of pipelines and overhead utilities All projects associated with this annexation have been completed 3rd Plan Amendment The list of project costs was amended a third time with the approval of the 3rd Plan Amendment, which included improvements estimated to total $8 million This amendment addressed the need to fund and construct a section of Broadway. All projects associated with this annexation have been completed These costs are detailed in the amended Project Budget, a copy of which follows as Table D. The Zone as now enlarged is composed of 3,932+ acres, of which 3,125+ acres are within Brazoria County and 807+ acres are within Fort Bend County. A map illustrating the boundaries of the Zone as amended follows on page 16 as Exhibit 2 9 55 TABLE D Reinvestment Zone NO 2,City of Pearland,Texas Shadow Creek Ranch Budget Item TIRZ Budget as 1st Plan 2nd Plan 3rd Plan TIRZ Budget as approved Amendment(2) Amendment(2) Amendment(2) Amended (3) (08/23/99)(I) Infrastructure Streets Pavement 12,610 050 1 634,000 14,244,050 Sidewalks 1,859,400 1,859,400 Landscaping and Irrigation 9 675,350 9,675,350 Entry Monuments 735,320 735,320 Lighting 125,900 125,900 Broadway Widening and Signalization 2,831 789 2,831,789 Business Center Drive Paving 852,722 852 722 Memorial Hermann Drive Paving 383 107 383,107 Water System 3,026,863 363,000 3,389,863 Wastewater System 6,940,964 1 029,000 7,969 964 Storm Water System 10 195 776 1,649,000 11 844 776 Lakes and Channels Improvements 29 121 915 5,625,600 34 747 515 Land Cost 4,597,889 6 675,000 11,272,889 Detention and Drainage Land Cost 2,850,000 2,850,000 Beautificafton/Deepening/Pond Creation 200,000 200,000 Site Drainage Facilities 1,842,000 1 842,000 Parks and Recreation Improvements 5 155,524 5,573,025 10 728,549 Land Cost 2,383,545 2,383,545 Landscaping Business Center Drive 157 500 157,500 Memorial Hermann Drive 67,500 67 500 Overhead Utilities Placed Underground 1 200,000 1,200,000 Pipeline Relocation 700,000 700,000 Major Improvements Water Plants Land Cost 20,000 20,000 WWTP 340,000 340,000 Lift Station 300,000 300,000 Traffic Signals 600,000 550,000 1 150,000 McHard Road Reimbursables Miscelaneous 150,000 150,000 Signal 100,000 100 000 SH 288 Access Road 1 000,000 1 000,000 FM 518 Improvements 6,485,600 6 485,600 Broadway I FM 518 Improvements 7 100,000 7 100,000 Contengencies and Engineering Contingencies(10%) 8 181 116 1,733,620 9,914,736 Engineering(15%) 11 274 211 2,860,473 490,000 900,000 15,524,684 Master Drainage Plan Costs 70,000 70,000 Environmental Study Costs 100,000 100,000 Subtotal 108,267 923 34,474,218 11 574 618 8,000,003 162,316,759 Zone Administration/Creation TIRZ Administration(1 3 Years) 466,000 466,000 Reimbursable TIRZ Creation Costs 900,000 900,000 Annexation Costs 250 000 250 000 Plan Amendment Costs 175,000 175,000 Subtotal 1,366,000 250,000 175,000 1,791,000 Total 109,633,923 34 724,218 11,749,618 8,000,000 164 107 759 City Facilities Library Improvements 2,395,000 2,395,000 Land Cost 105,000 105,000 Fire/Police Station Improvements 2,255,000 2,255,000 Land Cost 245,000 245,000 Subtotal 5,000,000 5,000,000 Educational Facilities AISD Elementary School 41,600,000 41 600 000 AISD Jr High School 21 450,000 21 450,000 AISD Fresh/Soph Campus 34,050,000 34,050,000 FBISD Elementary School 11 000,000 11 000,000 FBISD Middle School 26,000 000 26,000 000 Subtotal 134,100,000 134 100,000 Grand Total 248,733,923 34,724,218 11 749,618 8,000,000 303,207,759 (1)The original TIRZ Budget as approved in 1999 dollars has not been adjusted for inflation. (2)The amended Budgets as approved in 2006 are shown in 2006 dollars and have not been adjusted for inflation (3)The Budget as amended shows budget line items as approved in their respective years without adjustment for inflation 10 56 TIRZ-Funded Projects. Since the creation of the Zone a series of infrastructure improvements have been funded and constructed In 2017, Letter Financing Agreement (Project #17-10-001) was approved by the Board The proposed improvements total $1,091,520 (2006 dollars) for design, construction, and contingency for improvements to CR 59 During calendar year 2017 Shadow Creek Ranch reported approximately 77 home sales and 82 closings These additions bring the total number of homes in the Zone to 6,576 as of December 31, 2017. Several significant commercial projects also were completed in 2017 City Funded Improvements. • There were no City funded projects in 2017 TxDOT Funded Improvements: • There were no TxDOT funded projects in 2017. 3. The information provided in this section is in accordance with §311.016 (a) (3) of the Texas Tax Code, which requires inclusion of the amount of principal and interest due on outstanding bonded indebtedness. Bond Issues In accordance with a Tri-Party Agreement dated October 11, 2004 between the TIRZ, the City of Pearland, and the Development Authority of Pearland (DAP), the TIRZ has pledged increment to provide for the repayment of debt issued on its behalf. In this regard, the DAP sold Tax Increment Contract Revenue Bonds in 2004, 2005, 2006, 2007, 2009, 2013, 2014, 2016, and 2017 Additionally, in 2015, the DAP sold Tax Increment Contract Revenue and Refunding Bonds, which refunded the then-outstanding bonds issued prior to 2013 TABLE E Development Authority of Pearland Outstanding Debt as of December 31, 2017 Tax increment Contract Principal Amount Principal Amount Total Debt Service Revenue Bonds Issued Outstanding Outstanding Series 2013 $9,150,000 $7,590,000 $9,695,357 Series 2014 $8,060,000 $6,485,000 $7,663,712 Series 2015 $66,030,000 $57,395,000 $67,948,110 Series 2016 $12,320,000 $11,995,000 $13,759,123 Series 2017 $8,555,000 $8,555,000 $9,854,496 Total $104,115,000 $92,020,000 $108,920,798 In addition to developer reimbursements made via the sale of bonds, the DAP has also made payments from cash reserves. In 2017 the DAP made direct payments to the developer totaling $7,923,413 Total direct payments as of the end of 2017 for the DAP is $70,026,578, all of which are reflected within in the reimbursements outlined in Table F Additional LFA's Approved for Reimbursement The Zone Board has approved a series of Letter Financing Agreements (LFA's) for reimbursement. Prior to Board action all project costs related to each LFA were reviewed by the Zone's Auditor, McGrath & Co PLLC, and summarized in a reimbursement report, which included eligible project costs plus interest Table F outlines Letter Financing Agreements approved through the end of 2017 11 57 TABLE F Letter Finance Agreements Approved for Reimbursement Letter Finance Agreement(LFA) LFA Date LFA Amount(1) Reimbursements Through 2017(2) Creation Costs 6/19/2000 $ 900,000 $ 1,235,408 LFA99-11-001(Entry) 11/8/1999 919,150 " 1,220,281 LFA00-01-001(V1P1A) 2/21/2000 6,524,629 5,243,529 LFA 00-10-002(V1 P1 B) 10/9/2000 10,318,290 10,593,290 LFA01-04-001(V1P1B) 8/23/2001 1,967,061 805,884 LFA 03-10-004(Kingsley Drive,Phase 3) 10/7/2003 3,529,173 2 791 877 LFA 04-07-006(Traffic Signal 7/13/2004 287 788 293,578 Shadow Creek PKWY/Kingsley) LFA 04-07-007(Parks and Trails 7/13/2004 1 007,256 877,201 Grading and Infrastructure) LFA03-10-001(Remaining Village 10/7/2003 7,554,654 8,493,040 2,Phase 2 Improvements) LFA 04-07.002(Fire/Police Station Land Cost) 7/13/2004 408 668 555,954 LFA 02-08-001(Village 1 and Village 8/6/2002 4 727 516 6,029,532 2 Phase 2 Improvements) LFA 01-11-002(Additional Village 1 and 11/12/2001 24,509,430 33,055,576 Village 2 Improvements) LFA 03-10-002(Village 3,Phase 1 and 10/7/2003 7,809,950 11,734,369 2 Improvements) LFA 06-03-001(Elementary School#2 Site) 3/27/2006 1,687,801 1,886,601 LFA 06-08-002(Library Site) 8/28/2006 481,569 557,100 LFA 04-07-003(Regional Nature Park) 7/13/2004 760,988 1 168,312 LFA 03-10-005(Kingsley Drive Phase 10/07/03 4,486 342 6,811,005 4 Improvements) LFA03-10.006(Village 5 Improvements) 10/07/03 7,055 177 11,274,134 LFA 04-07-005(Village 4,Phase 1 and 04/07/05 3 354 452 5,223,786 Refelction Bay North Improvements) LFA 03-10-003(Village 3,Phase 3 Improvements) 10/07/03 7,711,582 12,811,167 LFA 04-07-004(Village 3,Phase 4 Improvements) 07/13/04 8,204,999 13,624,832 LFA06-01-001(Kingsley Drive North) 01/31/06 6,417,644 10,329 448 LFA06-01-002(Additional Village 4 Improvements) 01/31/06 9,392,437 14,608 001 LFA 06-08-001(Additional Sidewalks) 08/28/06 2,356,305 2 833 779 LFA 06-01-003(Remaining Village 4 Improvements) 01/30/06 7,120,532 8 647,692 LFA 06-08-003(S.H.228 Frontage Road 08/31/06 1,276 667 1,661,235 LFA 07-03-001(Village 7,Phase 1 Broadway 3/12/2007 1 271,499 1,811,131 Improvements) LFA 08-05-001(Broadway to FM 521) 5/5/2008 9,482,989 1 086 636 LFA 08-05-002(Broadway Landscape-Northside) 5/5/2008 1,158,218 " - LFA 10-06-001(Discovery Bay Extension to SH288) 6/7/2010 912,908 LFA 10-06-002(SCH-4 Site) 6/7/2010 2,530,620 - LFA 10-06-003(SCH-5 Site) 6/7/2010 4,935,370 - LFA 13-06-001(SCH-3 Site) 6/24/2013 2,382,379 LFA 06-10-001(Road Infrastructure,Pipeline 10/23/06 9,949,618 - Relocation and Site Drainage,Part of 2nd Plan Amendment) LFA 07-03-002(Shadow Creek Ranch Town Center 03/12/07 1 851 598 - Improvements,Part of 2nd Plan Amendment) LFA 08-01-001(Broadway Improvements) 1/15/2008 8,449,086 - City of Pearland LFA 12-06-001(Village 7,Phase 1) 6/11/2012 10,571,086 LFA 13-06-002(Southlake Phase 2) 6/24/2013 9 102,286 LFA 14-06-001(Southlake Phase 3) 6/24/2013 3,548,252 LFA 14-06-002(South Grove Phase 1) 6/23/2014 7 448,692 LFA 16-08-001(Road to serve Reserve at Shadow Cree 8/8/2016 2,075,106 LFA 17-10-001(CR59Improvements) 10/23/2017 1,091,520 LFA 04-07-001(Primary Entry Costs) 7/13/2004 92,393 $ 207,623 680 $ 177,264,378 (1) LFA amounts have been adjusted for inflation per the Project and Financing Plan and related budget 12 (2) Amounts reimbursed include actual interest per the Developer Reimbursement Agreement 58 "Actual costs exceeded the amount of the LFA Per the governing agreements,reimbursement is limited to the amount of the LFA 4. The information provided in this section is in accordance with §311.016 (a) (4) of the Texas Tax Code, which requires inclusion of the tax increment base and current captured appraised value retained by the zone In each year subsequent to the base year, the Zone will receive tax increment revenue based on ad valorem property taxes levied and collected by each participating taxing unit on the captured appraised value of the Zone The captured appraised value of the Zone is the total appraised value of all real property located within the Zone as of January 1, less the total appraised base year(January 1, 1998)value As of December 31, 2017, development schedules for the original Zone remained unchanged from projections in the Project Plan. However, because the pace of development is unpredictable, and because the Project Plan provides a best estimate of captured appraised values, the actual captured appraised value in any future year may not equal the projected estimates of such value As of January 1, 1998, the base year for the Zone, the area encompassed by the original Zone was undeveloped land, with a total appraised value of $7,172,980. On January 1, 2017, the area encompassed by the original Zone had a total appraised value of $2,243,875,455. As a result, the total captured appraised value (net base year value and exemptions) on the tax roll as of January 1, 2017, was $2,236,702,475 for the City, as illustrated in Table B. The City of Pearland base year (2006) value for the 457+ acres annexed in the 1st Plan Amendment was $4,381,680 As of January 1, 2017, the total appraised value was $190,978,368 As a result, the total captured appraised value on the roll as of January 1, 2017, was $186,596,688. All lands associated with the 2nd Plan Amendment are within the boundaries of the original Zone. All lands associated with the 3rd Plan Amendment are either owned by a municipality or are dedicated right-of-way with no taxable value 5. The information provided in this section is in accordance with §311.016 (a) (5) of the Texas Tax Code, which requires inclusion of the captured appraised value shared by the municipality and other taxing units, the total amount of tax increments received, and any additional information necessary to demonstrate compliance with the tax increment financing plan adopted by the governing body of the municipality As previously stated, the City, Brazona County, Fort Bend County and Alvin ISD are the only taxing units currently participating in the Zone As of January 1, 2017, the total captured appraised value in the TIRZ was $2,423,299,163 for the original and annexed areas of the Zone The total amount of tax increment revenue received is detailed in Table C (This report was written in accordance with the provisions of Chapter 311 016 of the Texas Tax Code) 13 59 REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS 2017 ANNUAL REPORT EXHIBITS 14 Exhibit I 1i, '�ya�' ,; Ha ris Couriiy:, t t ,•\. ,r, is ' � �� a,•'� . `"`►• Gov,, IClear.Creek ,'' _ � 'IL 4-�; 1y • •• t {, Brazoria County't � 44- rG li i -- . II .3,cr.., .‘.., , . 1 -- " rr� i• r -I� tl -'+ '�re, `� !• j ••'jti v•-•--ram 1// ::'‘. , 41Nliit ; . I •'' • ..y:;'::..z):: ,t"�, ��ty o'fPearaland _ _ :; r j N R- tam t r_ :„ �1„ p , i T 'Z,No: 2 ,Zr; :; r� • Shadow Creek Ranch r • µ`it' . i It (1) ' ' . .f,' ....i.,',.4 ::,:11: ''. ... ,'"? , : .4 10 •0 044,06 , _ ill .:,,., ,; i '' ' cr3 . . l' . '9'r-Jr:: , 111 tlfil t., , .... S,7t4'm l?N t' J - ✓: • gio I, q i • d . ,,,,, ,. Lt , _ . , •• , .. .... „, ..,.,, ..._ . . . .1.3 a,�*.. t L•. ,, .,. .....,;. .___ : • County Road 92.,.. i. : -• - _ ..- �'!'` �r��t - J . 3rd Amendment " : +a i ,il .r r Annexations ' i ( 1st Amendment ' Annexation �,,+ `. . ;4. • / r 2ND AMENDMENT C _ '' •' y�} . PEARLAND RETAIL DEVELOPMENT .ry + 4 '" • - ..,AII:O :•.r-yr / • t ,,r� .: j�l PARTNERS SITE �.,. , • tl ' • n f Y (SHADOW CREEK RANCH TOWN CENTER) "� /_ ��;ice' ( ' s F. 1 '. TIRZ Boundary ,. , r ' County Line IN R :. 1 I .w.(. / �, ' t:, SCAL E t -2000 FEET y„. .i,.1 „ ., r '•• t - / - - ) - . _. PRI 3rd Amendment Annexation tv. t - { - • V •f. 4 � , } r la) !—a,, 15 • R , ',, ' -TIRZ 2 - ORIGINAL BOUNDARY +:y8M" aw.+.. ! f1}y4 wtr PC a • • "00;46 I t-,44 . . • . - •I i 1' '`' titC• fiNs, „ -,,,,,,,...,.. -. _ . , ., , -..,:.,..,d,if--,,,,v,i1L,, , , ... . , . ... . , , . _ , , •. .„,„ , .. ,., tkA.7irrmv, . . , w ( 4 ii �rtg� t1ek i[ 1 M. / I:r , • 1ST AMENDMENT • IO � �r F"" '1 ANNEXATION PEARLAND RETAIL DEVELOPMENT ' /`.1;4. PARTNERS SITE `"' Ib ._ ... aryl 4ie .#. [- 4 4 • Exhibit 2 - 16 Marsh Darcy Partners, Inc 8955 Katy Freeway, Suite 215 Houston, Texas 77024 63