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2006-06-26 CITY COUNCIL PUBLIC HEARING MEETING MINUTESMINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, HELD ON JUNE 26, 2006, AT 7:00 P.M., IN THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS. Mayor Reid called the meeting to order at 7:00 p.m. with the following present: Mayor Tom Reid Councilmember Kevin Cole Councilmember Helen Beckman Councilmember Felicia Kyle Councilmember Steve Saboe City Manager Bill Eisen City Attorney Darrin Coker City Secretary Young Lorfing Absent: Mayor Pro -Tem Richard Tetens. Others in attendance: Public Works Director Danny Cameron; Parks and Recreation Director Rhonda Cyrus; City Engineer Doug Kneupper; Assistant City Manager Nick Finan; Assistant City Manager Mike Hodge; Planning Director Lata Krishnarao; Interim Project Director Jennifer Phan; EMS Director Jeff Sundseth; Executive Director of Economic Development Corporation Fred Welch; Senior Planner Theresa Grahmann; Administrative Analyst Chris Kidwell; Assistant Police Chief Johnny Spires. PURPOSE OF HEARING — PUBLIC COMMENT AND TESTIMONY REGARDING AMENDMENT TO THE PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN FOR TAX INCREMENT REINVESTMENT ZONE (TIRZ) NO. 2 AMENDMENTS. STAFF REVIEW OF THE ADOPTION OF AMENDMENT TO THE PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN FOR TAX INCREMENT REINVESTMENT ZONE (TIRZ) NO. 2 AMENDMENTS. Mr. Darrin Coker, City Attorney. City Manager Bill Eisen stated the Agenda for the Regular Meeting that will be held later tonight contains two amendments as they relate to Tax Increment Reinvestment Zone No. 2 (TIRZ No. 2), which is Shadow Creek Ranch. The first amendment involves participation by the City at a level identical to the original participation level in terms of portions of tax rates that go into the TIRZ No. 2, but will now include an expansion to TIRZ No. 2 of approximately 450 acres located south of the future extension of Broadway. The second amendment will be the addition of Alvin Community College as a participant in TIRZ No. 2. This will involve a participation of 50% of their tax rate going into TIRZ No. 2 with the stipulation that if Alvin Community College decides to build a campus, the amount will be increased above that 50%. There are some concerns that there is Page 1 of 3 — 6/26/2006 no option for Alvin Community College to opt -out. The action that will be taken in the Regular Meeting would make Alvin Community College's participation identical to other participants in TIRZ No. 2. CITIZEN COMMENTS — None. COUNCIL/STAFF DISCUSSION Councilmember Saboe asked what the history is regarding the opting out option, and are provisions like this normal or is the request to have an opt -out option something that has not been done before. City Attorney Darrin Coker stated this is something that has not been done before because everyone except the School District does not have an opt -out option. The School District had the option to opt -out if legislation was changed making it illegal for them to participate in a TIRZ. Council will be given proposed language for the action in the regular meeting, prior to the meeting. The wording is a provision requested by Alvin Community College that would allow discussion to be held between Alvin Community College and the City if their participation in TIRZ No. 2 became detrimental to their organization. Staff does not recommend moving forward with the provision as it is currently written. All other participants are participating with a commitment for the full time period. Councilmember Kyle stated that the term "detrimental" is vague and asked City Attorney Darrin Coker to explain what Alvin Community College considered as a "detrimental" situation. City Attorney Darrin Coker stated Gary Feldman, the representative for Alvin Community College, could explain this further, but was not present at this time. Alvin Community College was not specific in what would constitute a "detrimental" situation and this is why he does not recommend moving forward with the provision as it is written. Shadow Creek Ranch has an agreement with Alvin Community College in which the terms of participation are outlined. These terms are reflected in the action items Council will review in the Regular Meeting. Councilmember Beckman stated she would not approve of adding an opt -out provision for Alvin Community College. It would be a commitment without making a commitment. Councilmember Saboe asked if Council elected to amend the item, would another Public Hearing be held. City Attorney Darrin Coker stated the item would need to be reviewed and approved by the TIRZ Board and then another Public Hearing would need to be held. Page 2 of 3 — 6/26/2006 Gary Cook, Shadow Creek Ranch, stated he discussed this item with Alvin Community College. As part of the agreement between Shadow Creek Ranch and Alvin Community College, Shadow Creek Ranch is annexing 600 acres that are not currently in the College's district. No opt -out provision was discussed between Shadow Creek Ranch and Alvin Community College. Shadow Creek Ranch has informed Alvin Community College that they will not annex the additional 600 acres if the item is approved with an opt -out provision. It is the opinion of Shadow Creek Ranch that Alvin Community College should either have a full commitment like all the other participants or not participate. ADJOURNMENT Meeting was adjourned at 7:14 p.m. Minutes approved as submitted and/or corrected this the 10th day of July, A.D., 2006. P -n ('TW Sedretary Tom Reid Mayor Page 3 of 3 — 6/26/2006 THIS PAGE LEFT BLANK INTENTIONALLY