Loading...
2006-01-30 TAX INCREMENT REINVESTMENT ZONE NO. 2 BOARD MEETING MINUTESMINUTES OF THE BOARD OF DIRECTORS MEETING TAX INCREMENT REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS January 30, 2006 A special meeting of the Board of Directors ("Board") of the Tax Increment Reinvestment Zone Number Two ("Zone"), City of Pearland, Texas, was held in the Council Chambers of City Hall, which is located at 3519 Liberty Drive, Pearland, Texas, on Monday, January 30, 2006, at 4:00 p.m. The meeting was open to the public. Board Members in attendance: Gary Cook Mike Pyburn Larry Loessin Gary Davis Jo Knight Donna Coleman City of Pearland representatives in attendance: Hon. Tom Reid Bill Eisen Fred Welch Board Members not in attendance: Nigel Harrison Ron Castillo Ken Phillips Consultants in attendance: Lynne Humphries — Allen Boone Humphries Robinson, LLP James Ross — LJA Engineering & Surveying, Inc. Alan Mueller - LJA Engineering & Surveying, Inc. Sue Darcy — Knudson & Associates, LP Charles Knight — Knudson & Associates, LP Chris Johnson — Huitt-Zollars Mark McGrath — Null-Lairson Developer representatives in attendance: Drew Pelter — Shadow Creek Ranch Development Company, Ltd. Call the meeting to order, take attendance and verify that a quorum is present. Director Cook called the meeting to order at 4:10 p.m. and took attendance. The following Directors were present: 1. Gary Cook 2. Mike Pyburn 3. Larry Loessin 4. Gary Davis 5. Jo Knight 6. Donna Coleman Directors Nigel Harrison, Ron Castillo and Ken Phillips were not in attendance. 2. Discuss and approve the minutes of the August 29, 2005 Board meeting. Director Davis moved that the Board approve the minutes of the August 29, 2005 Board meeting. Director Coleman seconded the motion. Following discussion, the Board unanimously approved the motion. Project report from the Developer and PowerPoint Presentation; take appropriate action. Drew Pelter with Shadow Creek Ranch Development Co., Ltd. reported that the one lane of the southern portion of Kingsley is complete, and the second lane is nearly finished. South Business Center Drive is complete, as well. To date, approximately 2000 homes are occupied, with an additional 500 homes under construction. The 85,000 square foot HCA medical office building is framed, and will likely be open in the spring. A CVS store is currently being stocked and will open in February 2006. Design work on AISD's second elementary school is nearing completion with groundbreaking anticipated in the second quarter of 2006. The closing on the first Ft. Bend ISD elementary school site is expected soon. The Board took no action on the report. 4. Discuss and take necessary action regarding approval of the Auditor's Report on Developer Reimbursement No. 3 and make recommendation to City for Reimbursement. Mark McGrath with Null-Lairson, auditors for the Zone, reviewed the Report with the Board and confirmed that projects contained in Letter Finance Agreement No. 03-10-001 were completed within the budget stated in the LFA. Mr. McGrath noted that, per the Development Agreement, the interest rate on the first $20,000,000 in Developer Advances has been calculated at 8 percent, and Developer Advances thereafter accrue at a rate of 6.5 percent. He noted that approximately $2.4 million of the costs in this LFA accrues interest at the 8 percent rate and the approximately $4.9 million in remaining costs accrues interest at the 6.5 percent rate. Director Davis moved that the Board approve the Auditor's Report on Developer Reimbursement No. 3 and recommend to the City that the projects contained therein be reimbursed. Director Coleman seconded the motion. Following discussion, the Board unanimously approved the motion. 5. Discuss and take necessary action regarding Huitt-Zollars, Inc.'s construction audit work authorizations and reports for the following projects: a. Kingsley Drive North, Project Number 06-01-001; b. Additional Village Four Improvements, Project Number 06-01-002; C. Remaining Village Four Improvements, Project Number 06-01-003. Chris Johnson with Huitt-Zollars, construction auditor for the Zone, reviewed the work authorizations and reports with the Board, confirming that the proposed projects complied with the Project Plan. Director Pyburn moved that the Board approved the Huitt-Zollars work authorizations and reports listed in agenda items 5.a through 5.c. Director Knight seconded the 2 motion. Following discussion, the Board unanimously approved the motion, with Director Cook abstaining. 6. Engineering Report on the following projects by LJA Engineering & Surveying, Inc.. a. Kingsley Drive North, Project Number 06-01-001; b. Additional Village Four Improvements, Project Number 06-01-002; C. Remaining Village Four Improvements, Project Number 06-01-003. 7. Discuss and take necessary action regarding approval of Letter Financing Agreements for the following projects: a. Kingsley Drive North, Project Number 06-01-001; b. Additional Village Four Improvements, Project Number 06-01-002; C. Remaining Village Four Improvements, Project Number 06-01-003. The Board agreed to consider items 6.a through 6.c and 7.a through 7.c together. James Ross with LJA Engineering, engineers for the Zone, reviewed the projects with the Board, noting that the bulk of the projects in the Project Plan have been approved for construction. Director Davis moved that the Board approve the reports as listed in agenda items 6.a through 6.c, as well as the Letter Financing Agreements as listed in agenda items 7.a through 7.c. Director Pyburn seconded the motion. Following discussion, the Board unanimously approved the motion, with Director Cook abstaining. 8. Receive PowerPoint presentation on annexation from attorney and discuss and take necessary action regarding City's request that the Zone develop Project and Financing Plans for land added into the Zone boundaries by the City, authorize Knudson & Associates, LP, Allen Boone Humphries Robinson, LP and LJA Engineering and Surveying, Inc. to prepare amendments to the Project and Financing Plans, and authorize Zone consultants to work with other taxing jurisdictions to determine their participation in the amended Project and Financing Plan. Lynne Humphries with Allen Boone Humphries Robinson, attorneys for the Zone, summarized the history of the Zone and explained that landowners of approximately 457 acres of undeveloped land, immediately adjacent to the southwest corner of the Zone, have petitioned the City for annexation into the Zone. She explained that the base year of the annexed portion of the Zone would be 2006, and AISD would not be able to participate in this annexed area without penalty. She noted that the Board is being asked to authorize Knudson & Associates to prepare the amendment to the Project & Financing Plan for Board and City Council consideration. She also noted that there will be a public hearing on the proposed amendment and annexation. Director Loessin asked if there was any condemnation contemplated with this annexation, to which Bill Eisen responded there is none contemplated at this time. Director Coleman moved that the Board authorize Knudson & Associates, LP, Allen Boone Humphries Robinson, LP and LJA Engineering and Surveying, Inc. to prepare amendments to the Project and Financing Plans, and authorize Zone consultants to work with other taxing jurisdictions to determine their participation in the amended Project and Financing Plan. Director Knight seconded the motion. Following discussion, the Board unanimously approved the motion, with Director Cook abstaining. 9. Report from Invoice Review Committee on administrative invoices approved for payment at December 27, 2005 meeting and approve new invoices for payment. Director Pyburn reported on the action taken by the Invoice Review Committee on administrative invoices approved for payment at its December 27, 2005 meeting. Director Loessin requested that the $10,000 invoice from ABHR for 2005 membership in the Community Redevelopment Coalition (CRC) be reissued by the CRC itself. Ms. Humphries stated she would contact the CRC. No new invoices were presented for payment. The Board took no action on the report. 10. Discuss conflict of interest disclosure required under Chapter 176 of the Texas Local Government Code, including review of disclosure forms adopted by the Texas Ethics Commission, and authorize appropriate action. Ms Humphries next reviewed with the Board new legislation enacting Chapter 176 of the Texas Local Government Code, which requires directors and consultants to disclose certain conflicts of interest. Ms. Humphries reviewed with the Board the forms adopted by the Texas Ethics Commission for making disclosures under Chapter 176 and noted that the forms are required to be filed with the records administrator for the District beginning January 1, 2006 and will need to be filed thereafter within 7 days of a disclosable conflict arising. Ms. Humphries explained that failure to make a disclosure required under Chapter 176 is a Class C misdemeanor. Ms. Humphries encouraged the Board to contact ABHR if assistance is needed in determining whether a conflict requires disclosure or in making a required disclosure. The Board authorized ABHR to maintain a list of the Zone's Board Members and make that list available to the public and to contractors who may he required to file a questionnaire under Chapter 176. The Board also amended the Zone's Ethics Policy to require disclosure under Chapter 176 of the Texas Local Government Code. 11. Discuss and take necessary action regarding approval of Joint Construction and Reimbursement Agreements with Brazoria-Fort Bend County MUD No. 1 for the following projects: a. Construction of Water, Sanitary Sewer and Drainage facilities to serve Shadow Creek Ranch Kingsley Drive South; Construction of Water, Sanitary Sewer and Drainage facilities to serve Shadow Creek Ranch Kingsley Drive North. Lynne Humphries reviewed both agreements with the Board. Director Pyburn moved that the Board approve the Joint Construction and Reimbursement Agreements with Brazoria-Fort Bend 4 County Municipal Utility District No. 1. for construction of water, sanitary sewer and drainage facilities to serve Shadow Creek Ranch, Kingsley Drive North and South. Director Davis seconded the motion. Following discussion, the motion passed unanimously, with Director Cook abstaining. 12. New Business. Director Pyburn reported that on Thursday, January 26, 2006, the Board of Trustees for Alvin Community College (ACC) voted seven to one to participate in the current TIRZ No. 2, contributing 50 percent of its current tax rate from 2007 through 1016, with an option to increase its participation if an ACC campus is built within the Zone boundaries, subject to annexation of portions of Fort Bend County in the Zone into the ACC district. Ms. Humphries noted that all current landowners must approve annexation into the boundaries of the ACC. 13. Any other matters which may properly come before the Board. No other matters were brought before the Board. 14. Adjournment. The meeting was adjourned by unanimous consent at 5:07 p.m. Board Secretary Tax Increment Reinvestment Zone Number Two City of Pearland, Texas 5