Loading...
2019-10-28 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 October 28, 2019 1 2:00 P.M. CITY HALL ANNEX BUILDING 1 3523 LIBERTY DRIVE 1 HOUSTON ROOM I. CALL TO ORDER AND ROLL CALL II. PUBLIC COMMENTS III. PURPOSE OF THE MEETING 1. Consideration and Possible Action — Regular Meeting Minutes of September 24, 2018, Tax Increment Reinvestment Zone Number 2 (TIRZ No. 2) Board of Directors Meeting. 2. Consideration and Possible Action - Financial Report for the period ending September 30, 2019 (unaudited). 3. Consideration and Possible Action — Investment Report for the Quarter Ending June 2019. 4. Consideration and Possible Action — 2018 Annual Report 5. Consideration and Possible Action — Ratification of invoices authorized for payment by the Invoice Review Committee. 6. Consideration and Possible Action — Recommendation to City Council of Pian Amendment #5 7. Consideration and Possible Action — Letter Finance Agreements a. 19-10-001 City of Pearland Fire Station #8 b. 19-10-002 Shadow Creek Ranch Library c. 19-10-003 Shadow Creek Ranch Nature Trail Connection d. 19-10-004 FM 521 Improvements 8. Discussion Item — Development Authority of Pearland Tax Increment Contract Revenue Bonds, Series 2019 9. Discussion Item — Developer reimbursements from Development Authority of Pearland available surplus increment. 10. Discussion Item — LFA tracking report and financial projection update 11. Discussion Item — Comments by Mayor Reid, TIRZ Board Members or TIRZ Consultants III. ADJOURN. „44., Sue Darcy, Marsh Darcy 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.pearlandtx.gov REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS ANNUAL REPORT 2018 TABLE OF CONTENTS City of Pearland, Texas, City Council 3 TIRZ Board of Directors 4 Descnption of the Zone 5 Purpose of the Zone 6 State of the Zone and Plan Implementation in 2018 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 ...12 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) 12 (4) 14 (5) . . 14 2 17 CITY OF PEARLAND, TEXAS CITY COUNCIL 2018 Council Members Mayor Hon Tom Reid Mayor Pro-Tem Hon Trent Perez, Position 6 Council Member Hon Tony Carbone, Position 1 Hon. Derrick Reed, Position 2 Hon. Gary Moore, Position 3 Hon Adrian Hernandez, Position 4 Hon J David Little, Position 5 Hon Woody Owens, Position 7 City Staff City Manager Clay Pearson Director of Finance Cynthia Pearson 3 18 REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS BOARD OF DIRECTORS 2018 Board Members Position 1 Buck Stevens 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 Geoff Tonini Alvin Independent School District Designee Position 8 Ali Hasanali Fort Bend County Designee Position 9 Larry Loessin Brazoria County Designee 4 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 Brazona 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 Brazona 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 Brazoria County. The Zone is now composed of 3,932+ acres, of which 3,125± acres are within Brazona 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. 4th Plan Amendment On August 13, 2018, by Ordinance 1562 of the City, the Project Plan was amended to increase the budget amounts for various categories of improvements to fund public safety, library, parks and recreation, landscaping, and transportation projects All proposed projects were within the previously approved Infrastructure budget category. This amendment was necessary to update cost estimates and to meet the level of service expected from current residents that could not be anticipated at the time of the original Zone creation The currently projected increment for the remaining life of the Zone is exceeding original expectations such that sufficient increment is projected to be available to fully fund this amendment. 5 20 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 21 STATE OF THE ZONE AND PLAN IMPLEMENTATION IN 2018 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 Brazoria 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 Brazoria 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 twentieth 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 2018 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, 2018 7 22 TABLE B Base Market Value by Jurisdiction(1) Taxing Entity Base Year Base Value 2018 Value (2) Captured Value Original Zone 1998 City of Pearland 7,172,980 2,455,592,967 2,448,419,987 Brazona County 4,143,160 2,009,040,826 2,004,897,666 Fort Bend County 3,029,820 471 285,602 468,255,782 Alvin ISD 4,143,160 1,932,858,992 1,928,715,832 1st Plan Amendment(3)(4)(5) 2006 City of Pearland 4,381,680 199,777,126 195,395,446 Brazoria County 3,354,830 120,898,201 117,543,371 Fort Bend County 1,026,850 54,145,464 53,118,614 Overall Zone City of Pearland 2,655,370,093 2,643,815,433 Brazoria County 2,129,939,027 2,122,441,037 Fort Bend County 525,431,066 521,374,396 Alvin ISD 2,070,954,727 1,928,715,832 (1) The information in this table was provided by the Brazoria and Fort Bend County Appraisal Districts and Assessments of the Southwest (2)Market value(less exemptions)as of January 1, 2018 (3)All of the land within the 2nd Plan Amendment(adopted in 2006)area is within 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 ROW and thus tax exempt (5)Plan Amendment 4(adopted in 2018)did not add any additional land to the boundary of the Zone TABLE C City of Pearland TIRZ No. 2 Tax Increment Revenue &Fund Balance by Year -Current Year and Prior Five Years (1) Year 2013 2014 2015 2016 2017 2018 City of Pearland Revenue $ 10,459,326 $ 12,326,867 $ 10,624,549 $ 14,362,791 $ 15,978,750 $ 17,760,605 Rebate to City for Administrative Costs (2) $ (6,677,117) $ (7,865,023) $ (6,803,968) $ (9,192,187) $(10,226,400) $(11,366,788) Brazoria County Revenue $ 1,499,782 $ 1,527,826 $ 1,674,994 $ 1,809,824 $ 2,089,520 $ 2,282,782 Alvin ISD Revenue(3) $ 4,160,862 $ 4,167,334 $ 4,933,323 $ 5,159,693 $ 6,015,299 $ 6,646,434 Other Revenue $ 1,310,196 $ 1,348,416 $ 1,476,931 $ 1,663,842 $ 1,993,467 $ 1,999,108 Fort Bend County Revenue $ 505,394 $ 725,795 $ 929,041 $ 1,339,271 $ 1,611,047 $ 1,807,656 Expenditures for Zone Administration $ (24,122) $ (16,427) $ (22,208) $ (19,986) $ (37,912) $ (81,293) Transfers to Development Authority $(10,997,930) $(11,494,978) $(12,666,896) $(14,572,487) $(15,977,530) $(15,609,092) Fund Balance (4) $ 2,332,457 $ 2,999,404 $ 2,510,500 $ 3,784,026 $ 3,863,404 $ 6,241,023 (1) Source- City of Pearland, Texas Fund balances as of 12/31 of each year (2) Rebate for admin costs prior 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 12/31/18, AISD had$6,649,114 99 in the suspense account 8 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 4th Plan Amendment The list of project costs was amended a fourth time with the approval of the 4th Plan Amendment, which included improvements estimated to total $52,324,235 This amendment addressed the need to update the cost estimates for previously approved budget categories It is anticipated that the City of Pearland will enter into Letter Finance Agreements to fund these projects to be reimbursed as incremental revenues are available. 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 24 Table D Jan 1999 ENR Index=6000 Reinvestment Zone No.2,City of Pearland,TX Jan 2006 ENR Index =7600 Budget Jan 2018 ENR Index=10878 Item TIRZ Budget as 1st Plan 2nd Plan 3rd Plan 4th Plan TIRZ Budget as approved(1) Amendment(2) Amendment(2) Amendment(21 Amendment(3) Amended(4) (08/23/99) (03/27/06) (10/23/06) (10/23/06) (06/18/18) Infrastructure Streets Pavement 12,610,050 1,634,000 14,244,050 Sidewalls 1,859,400 1 859,400 Landscapring 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 Sysem 10,195,776 1 649,000 11844,776 Lakes and Channels Improvements 29 121 915 5,625,600 34,747515 Land Cost 4,597,889 6,675,000 11 272,889 Detention and Drainage Land Cost 2,850 000 2,850,000 Beautificaiton/Deepening/Pond Creation 200 000 200,000 Site Drainage Facilities 1,842,000 1 842,000 Park and Recreation Improvements 5155,524 5,573,025 10,728,549 Land Cost 2,383,545 2,383,545 Landscaping Business Center Drive 157 500 157 500 Memorial Hemann Drive 67,500 67,500 Overhead Utilities Placed Underground 1,200,000 1,200,000 Pipeling 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 Reimbrusables Miscelaneous 150,000 150,000 Signal 100,000 100,000 SH 288 Access Road 1 000,000 1,000,000 FM 518 Improvemens 6,485,600 6,485,600 Broadway/FM 518 Improvements 7 100 000 7 100,000 Contingencies 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 Enviommental Study Costs 100 000 100,000 Shadow Creek Ranch Park Phase II 9 720,000 9 720,000 Shadow Creek Trail SCR Park Trail to Kirby and SCR Trail System 767,760 767 760 Shadow Creek Trail Phase II Along Clear 1 470,000 Creek Relief Ditch&Library Trail 1 470,000 Shadow Creek Parkway Landscaping Street Lighting&Sidewalks 7,140,000 7 140,000 Intersection Improvements(BCD/SCP BCD/Broadway,etc) 7,957,160 7 957 160 Sidewalk Extensions 1,137 701 1,137,701 Subtotal 108,267,923 34,474,218 11 574,618 8,000,000 28,192,621 190,509,380 (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 amended Budgets as approved in 2018 are shown in 2018 dollars and have not been adjusted for inflation (4)The Budget as amended shows budget line items as approved in their respective years without adjustment for inflation 10 25 Table D(continued) Item TIRZ Budget as 1st Plan 2nd Plan 3rd Plan 4th Plan TIRZ Budget as approved(2) Amendment(2) Amendment(,) Amendment(2) Amendment(3) Amended(4) (08/23/99) (03/27/06) (10/23/06) (10/23/06) (06/18/18) 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 Infrastructure Total 109,633,923 34,724,218 11,749,618 8.000 000 28 192,621 192,300,380 City Facilities Library Improvements 2,395,000 14,253 174 16,648,174 Land Costs 105,000 105,000 Fire/Police Station Improvements 2,255,000 9,878,439 12 133,439 Land Costs 245,000 245,000 City Facilities Total 5,000,000 0 0 0 24,131,614 29131 614 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 Educational Facilities Total 134100,000 0 0 0 0 134100,000 Grand Total 248,733,923 34 724,218 11,749,618 8,000.000 52,324,235 355,531,994 (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 amended Budgets as approved in 2018 are shown in 2018 dollars and have not been adjusted for inflation (4)The Budget as amended shows budget line items as approved in their respective years without adjustment for inflation 11 26 TIRZ-Funded Projects' Since the creation of the Zone a series of infrastructure improvements have been funded and constructed. In 2018, no additional Letter Financing Agreements(LFA)were approved However, LFA 04-07-001 was terminated at the request of the developer. During calendar year 2018 Shadow Creek Ranch reported 59 home sales, 54 new home starts, and 56 closings. These additions bring the total number of homes in the Zone to 6,235 as of December 31, 2018 Several significant commercial projects also were completed in 2018. City Funded Improvements • There were no City funded projects in 2018 TxDOT Funded Improvements: • There were no TxDOT funded projects in 2018 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, 2017, and 2018 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, 2018 Tax increment Contract Principal Amount Principal Amount Total Debt Service Revenue Bonds Issued Outstanding Outstanding Series 2013 $9,150,000 $7,185,000 $9,004,214 Series 2014 $8,060,000 $5,950,000 $6,952,320 Series 2015 $66,030,000 $52,930,000 $61,910,487 Series 2016 $12,320,000 $10,980,000 $12,477,834 Series 2017 $8,555,000 $8,135,000 $9,292,935 Series 2018 $5,835,000 $5,835,000 $7,061,561 Total $109,950,000 $91,015,000 $106,699,351 In addition to developer reimbursements made via the sale of bonds, the DAP has also made payments from cash reserves In 2018 the DAP made direct payments to the developer totaling $6,319,060. Total direct payments as of the end of 2018 for the DAP is $76,345,638, 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 2018 12 27 TABLE F Letter Finance Agreements Approved for Reimbursement Letter Finance Agreement(LFA) LFA Date LFA Amount(1) Reimbursements Through 2018(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 LFA 01-04-001(V1 P1 B) 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/IGngsley) 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) LFA04-07-002(Aire/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) LFA01-11-002(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 LEA 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) LFA 03-10-006(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 LFA 06-01-001(IGngsley Drive North) 01/31/06 6,417,644 10,329,448 LFA 06-01-002(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 r 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 8 723,886 LFA 08-05-002(Broadway Landscape-Northside) 5/5/2008 1,158,218 • 222,515 LFA 10-06-001(Discovery Bay Extension to SH288) 6/7/2010 912,908 697 765 LFA 10-06-002(SCH-4 Site) 6/7/2010 2,530,620 2,784,626 LFA 10-06-003(SCH-5 Site) 6/7/2010 4,935,370 895,835 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) LFA08-01-001(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 LEA 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(CR 59 Improvements) 10/23/2017 1 091 520 $ 207 531,287 $ 189,502,369 (1) LFA amounts have been adjusted for inflation per the Project and Financing Plan and related budget. (2) Amounts reimbursed include actual interest per the Developer Reimbursem ent Agreement •Actual costs exceeded the amount of the LFA Per the governing agreements,reimbursement is limited to the amount of the LFA 13 28 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, 2018, the captured value of the Zone as amended had exceeded the original Project Plan projections of value at the end of the Zone. However, because the pace of development is unpredictable 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, 2018, the area encompassed by the original Zone had a total appraised value of$2,455,592,967 As a result, the total captured appraised value (net base year value and exemptions) on the tax roll as of January 1, 2018, was $2,448,419,987 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, 2018, the total appraised value was $199,777,126 As a result, the total captured appraised value on the roll as of January 1, 2018,was$195,395,446 The 2nd and 4th Plan Amendments did not add any land to 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, Brazoria County, Fort Bend County and Alvin ISD are the only taxing units currently participating in the Zone As of January 1, 2018, the total captured appraised value in the TIRZ was$2,643,815,433 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) 14 29 REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS 2018 ANNUAL REPORT EXHIBITS 15 Exhibit 1: Zone Boundary Map t'" , ,*,` har �.':. • t ri's Couriiy 1 s'nL 1 1i+�1+ •`� co� Cleai_Creek �', d , >.� 'j 't ♦ pry .• Brazorla "OK , ),.......,_,,Is "II; 4• ' I -'-: Ill' i 49A-iii& . t ,\ ' -- Lro - 1 ,1 ' 'tit p�...4. ,-, '� { r�. Wit. 44,0e. , -. 4.,,,, ,,..„1, , , _ 4..3 4-'51' • , , . it; ,;of Pearland ; .• i:TIRZ�,No. 4 1 ..� 4 .',t 4'*'A*:,q e.l 4.e; 't, r' w'iu{ , �" fill itk �7!ItR�' { 1k; ..1 r: " �I Shadow. -ree Ran,' 1 ., ' 1: ' : r, ,, • i 1.,, .. 00", ,. , .. ,„,,y, ,...., lyp ., ii b 0 ".., (44.. Ibil:t; mom k 4 1., , .1. , , (1-3. , /1 4-• -. 4':4:14:1,A- _'.•'M.-'..•.I.+r '1 Z4h.ii tl%1t.4t 4lIh0f4 ` r `O } . ' { :.=ems'' 1 rl„i , 11 m ,„„,, .. ;w i, ` { r f W1 S 911,r ;L„„...1I, J. 1 �iL�.+tYt..�•11 . 4'. t r r rII '- Vie. ., a ... , } ; " 11',• 'k : t„. _ __. ViM Count Road ,, , Intl, r 1,•1W# cps 3rd Amendment4. t.'tt u� i 1 iiv: Annexation ,,,���/// A'< 1st Amendment f E.+ - "s t i t x /47 Annexation v 1 r '• t._, ' t 6 t. 2ND AMENDMENT 11 ; �i ,II" , -' PEARLAND RETAIL DEVELOPMENT r �` —. Apiiii, •ignsii t t J ' PARTNERS SITE ; ; t # (SHADOW CREEK RANCH TOWN CENTER) ' 1 fT Fs -/ - h ! II• t i > TIRZ Boundary t i . i t ',,t- h' • 1? J County Line •'' t „ t % lir + � i r .1. • �-.]__ 1-- — 3rd Amendment Annexation 16 31 Exhibit 2: Amended Zone Boundary Map w _ • r 1 TIRZ 2 , ORIGINAL BOUNDAR - Mi +.ram~ ; L 4_ ' Rk ' \ `. P l� '�' Y 0.:�.�^ •W . " ,� ~ 4 [. .._d 11 �• ; r� } Act A t .,: 1 1 .. .. : ate .«+ -4c".1 ,s. •yr_. it'_. • .. F .. — , .. . ...�.�. _ s. i4a• 1ST AMENDMENT � ;: _' ... .n =il ANNEXATION 5` ,, , , PEARLAND RETAIL DEVELOPMENT • i, . U, , i;g .' ` PARTNERS SITE 4 ' rr; ` -. " Z- c i ltd �,- • .1, : ,Y,y ..'Srill. * t 4._.... , V. .,'.a ills :." '� t"....,•..x h'{14' 17 32 Marsh Darcy Partners, Inc 8955 Katy Freeway, Suite 215 Houston, Texas 77024 33 DataAnalysis and Texas Comptroller of Public Accounts •parent Tax Increment Finance (TIF) Registry Annual Report by Municipality or County PLEASE PRINT OR TYPE,DO NOT WRITE IN SHADED AREAS. Please fill out the complete form and attach other documentation(See Instructions on page 21 STEP 1:Contact Information • City of Pearland Designating City or County Cynthia Pearson Director of Finance Contact Person Title 3519 Liberty Drive Current Mading Address(number and street) Pearland Brazoria 77581 City County — ZIP Code 281-652-1671 cpearson@pearlandtx gov Phone(area code and number) Fax Number Email Address STEP 2:Tax Increment Reinvestment Zone Information 1 TIF Reinvestment zone name- Tax Increment Reinvestment Zone No 2, City of Pearland,Texas DO NOT USE ORDINANCE OR RESOLUTION NUMBERS FOR ZONE NAME 2. Report for fiscal year beginning 111 r'18 and ending 12/31/18 3. Size of theT1F reinvestment zone in acres 3,932 4 Has the size of the zone increased or decreased since creation'- V Yes ,No 5 If you answered'Yes"in question t4,please indicate which? t/!Increased Decreased 6 Property types: ✓ Residential V I Commercial/Industrial [Agricultural [ ]All 7 Types of improvement projects(check all that are in progress or have been completed): Public Projects I Public Buildings and Facilities {1 Roadwork f✓1 Water/Sewer and Drainage ( Parks Other Infrastructure. Other Projects ` I Facade Renovation Parking f ( Historical Preservation } Transit Affordable Housing Economic Development - i Other 8 TIF fund balance... - ,. s 6,241,023 9 List of fund revenues: 26,870,586 Total tax increments received S - ---- Sales tax increments . .. •• S Loans . .. . S Sale of bonds s 5,835 000 Sale of property . . . S - - -- — Other . . . . S — TOTAL ANNUAL REVENUES S 32,705,586 The Data Analysis and Transparency Division at the Texas Comptroller of Public Accounts For more information visit our website provides information and resources for taxpayers and local taxing entities comptroller texas.gov/economy/local/ch311 50406•t-1g/71A Data Analysis and Texas Comptroller of Public Accounts Transparency Form 50-8o6 10 List of fund expenditures Administrative. .. . . . 5 81,293 Property purchased . _..._ . 5 Public improvements . .. _ S Facade renovations ... ... . . .. .. . 5 Parking _ . 5 Historic preservation . . ., .. S Transit .. ... ..... S Affordable housing . . . , ..., S Economic development programs .... . ... .. , . „ „_„ $ Other 5 26,975,880 TOTAL ANNUAL EXPENDITURES 5 27,057,173 11 Bonded indebtedness: Principal due $ 91,015,000 Interest due . 5 15,684,351 Fill out the three lines below if the TIRZ IS NOT divided into multiple subdivisions.If the zone is divided into multiple subdivisions.(a)Identify the name of each subdivision/section and(b)identify the TIRZ values,tax increment base and captured appraised value within that zone's subdivision. 12. Reinvestment zone values: Tax increment base . . s 11,554,660 Current captured appraised value 5 2,448,419,987 Tax increment reinvestment zone total(add above 2 lines together) . ... . 5 2,455,592,967 Name of the subdivision 1(if applicable) .. Shadow Creek Ranch (Fill out section below only if TIRZ is divided into multiple subdivisions) Tax increment base S Current captured appraised value .. . , ,.,. , S Tax increment reinvestment zone total(add above 2 lines together) $ Name of the subdivision 2(if applicable) Tax increment base S Current captured appraised value . .. .. .. . 5 Tax increment reinvestment zone total(add above 2 lines together) 5 Name of the subdivision 3(if applicable) . .. For more information,visit our website.comptroller texas.gov/economy/local/ch311/ Page 2 S0-806.1-19/73 5 Data&alp &and- Texas Comptroller of Public Accounts Transparency Firm 50-806 Tax increment base S Current captured appraised value S Tax increment reinvestment zone total(add above 2 lines together) 5 Name of the subdivision 4(if applicable) . TOTAL TIRZ values of all subdivisions combined . S 2,455,592,967 Total tax increment base of all subdivisions combined S 154,66 1,50 Total current captured appraised value of all subdivisions combined S 2,448,419,987 STEPS:Signature of Person Completing Eo :;/ _ _:�..-w ._ ... .--.. ..T .. .., - .I:.HMV '^ n..�...��..� sign ik here Director of Finance Authorized Signature Title Date Instructions State Law (Section Sec. 311.016, Tax Code) requires the governing body For assistance or to request additional forms, call toll free, 1-800-531-5441 of a municipality or county, on or before the 150th day following the end ext. 3-4679.You may also obtain additional forms at comptroller.texas.gov/ of its fiscal year, to submit a report on the status of a reinvestment zone economy/local/ch311/reporting.php. From a Telecommunication Device for created by the municipality or county to the chief executive officer of each the Deaf(TDD),call 1-800-248-4099 or 512-463-4621. taxing unit that levies property taxes on real property in the zone. A copy of this annual report along with this form must be submitted to the Texas Step 1 Contact information Comptroller of Public Accounts at the address below This information provides the Comptroller information on the entity initi- ating the tax increment reinvestment zone and a contact person for the Comptroller of Public Accounts annual report. Data Analysis and Transparency Division Post Office Box 13528 Step 2:Tax Increment Reinvestment Zone Information Please include the reinvestment zone name listed in the ordinance or Austin,Teas 78711-3528 resolution creating the zone, the size of the zone in acres, and the types of property in the zone. Indicate all improvement projects in progress or completed within the zone. List the TIF fund balance at the end of the fis- Or email the documents to frank.alvarez@cpa.texas.gov or cal year, all revenues received by the fund during the fiscal year, and all econ.dev@cpa.texas.gov expenditures made by the fund during the fiscal year List principal and interest due on bonded indebtedness, the tax increment base at the cre- ation of the zone and the current captured appraised value (the increase in property value over the tax increment base.) For more information,visit our website comptrollertexas.gov/economy/local/ch311/ Page 3 50-806•1-19/7