2012-09-17 DEVELOPMENT AUTHORITY OF PEARLAND SPECIAL MEETING MINUTESMINUTES OF A SPECIAL MEETING OF THE DEVELOPMENT AUTHORITY OF
PEARLAND, CITY OF PEARLAND TEXAS, HELD ON MONDAY, SEPTEMBER 17, 2012,
4:00 P.M., IN THE FIRST FLOOR CONFERENCE ROOM AT PEARLAND CITY HALL,
3519 LIBERTY DRIVE, PEARLAND, TEXAS.
Mayor Reid called the meeting to order at 4:00 p.m. with the following present.
Chairman Tom Reid
Secretary Ed Baker
Boardmember Tom Pool
Boardmember Tony Carbone
Absent Boardmember Bill Sloan.
Others in attendance: City of Pearland City Manager Bill Eisen, City of Pearland Finance
Director Claire Bogard; Drew Peltser, Shadow Creek Ranch; Gary Cooke Shadow Creek
Ranch; Deputy City Secretary Maria E. Rodriguez.
NEW BUSINESS:
BOARD ACTION —APPROVAL OF THE DEVELOPMENT AUTHORITY OF PEARLAND
BOARD OF DIRECTORS MEETING MINUTES FOR APRIL 30, 2012, SPECIAL MEETING
HELD AT 4:00 P.M. DAP Board of Directors.
Boardmember Carbone, made the motion, seconded by Boardmember Baker, to approve
the minutes of the April 30, 2012, Development Authority of Pearland Board Meeting.
Voting "Aye" Boardmembers Reid, Pool, Baker, and Carbone.
Voting "No" None.
Motion Passed 4 to 0, with Boardmember Sloan absent.
BOARD ACTION — APPROVAL OF THE DEVELOPMENT AUTHORITY OF PEARLAND
BOARD OF DIRECTORS MEETING MINUTES FOR JUNE 11, 2012, SPECIAL MEETING
HELD AT 5:00 P.M. DAP Board of Directors.
Boardmember Carbone, made the motion, seconded by Boardmember Baker, to approve
the minutes of the June 12, 2012, Development Authority of Pearland Board Meeting.
Voting "Aye" Boardmembers Reid, Pool, Baker, and Carbone.
Voting "No" None.
Motion Passed 4 to 0, with Boardmember Sloan absent.
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BOARD ACTION — RESOLUTION NO. RDAP-2012-14-A — A RESOLUTION OF THE
DEVELOPMENT AUTHORITY OF PEARLAND (DAP), TEXAS AUTHORIZING A
DEVELOPER REIMBURSEMENT TO SHADOW CREEK RANCH DEVELOPMENT
COMPANY LTD TO REIMBURSE FOR TIRZ INFRASTRUCTURE IMPROVEMENTS IN
THE AMOUNT OF $5,480,000 Ms. Claire Bogard, Finance Director.
Claire Bogard Finance Director stated to date there are two items on the agenda for
reimbursement to the Developer. The first item deals with the Tax Increment Participation
of the participating entities in the Tax Increment Reinvestment Zone No. 2 (TIRZ No. 2.)
The developer is paid through bonds or cash from the participating entities. To date there
is approximately $148,000,000 million of audited and actual improvements approved for
reimbursement by the Tax Increment Reinvestment Zone No. 2 (TIRZ No. 2) to the
developers of Shadow Creek Ranch. That amount is for construction only and not the accrued
interest in the amount $87,000,000 million of which is yet to be reimbursed. At this time, the
Board is being asked for the consideration and approval of cash reimbursement to Shadow
Creek Ranch Development Company LTD for $5,480,000 million. She stated per agreement,
payment was released in August to Alvin Independent School District for $4,000,000 million.
Also in August, Revenues of the Tax Increment Reinvestment Zone No. 2 (TIRZ No. 2) are
sent to Region Bank, the new trustee of the bonds. Region Bank retains the annual debt service
payment for the year and sends everything back to the Development Authority for
reimbursement. Ms. Bogard gave a brief overview of the balance sheet and income statement
provided in the Boards' packet. She stated the next item for consideration is to release the
State Texas Education Agency Fund, and made the recommendation to hold back $15,000
thousand for operating cost, and $1,000,000 million for reserve. She stated that since the bond
has been refunded there is no longer a reserve requirement.
Boardmember Carbone, made the motion, seconded by Boardmember Baker, to approve
Resolution No. RDAP-2012-14-A.
Voting "Aye" Boardmembers Reid, Pool, Baker, and Carbone.
Voting "No" None.
Motion Passed 4 to 0, with Boardmember Sloan absent.
BOARD ACTION — RESOLUTION NO. RDAP-2012-15 — A RESOLUTION OF THE
DEVELOPMENT AUTHORITY OF PEARLAND (DAP), TEXAS APPROVING A CASH
PAYMENT TO SHADOW CREEK RANCH DEVELOPMENT COMPANY LTD TO
REIMBURSE FOR TIRZ INFRASTRUCTURE IMPROVEMENTS. Ms. Claire Bogard,
Finance Director.
Claire Bogard Finance Director stated this reimbursement pertains to the tax year 2011 Texas
Education Agency supplemental funds on the TIRZ. In 2006 the Texas Legislature, addressed
School Finance Reform. Part of that reform allowed school districts to reduce their tax rate. In
order to keep Tax Increment Zones whole, the bill provided that the State would essentially
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make up the difference in the tax increments. In August, the City received State funds for
$1,253,000 for the tax year 2011. The attorneys for the Development Authority, Allen Boone and
Humphries Robinson, have informed staff that these fund are not subject to the one-year Alvin
Independent School District one-year suspense funds because they are not tax revenues from
the participants. At this time, the Board is being asked for authorization to release these
funds to the Developer, Shadow Creek Ranch.
Boardmember Baker, made the motion, seconded by Boardmember Pool to approve
Resolution No. RDAP-2012-15.
Voting "Aye" Boardmembers Pool, Baker, and Carbone.
Voting "No" None.
Motion Passed 4 to 0, with Boardmember Sloan absent.
ADJOURNMENT
Meeting was adjourned at 4:25 p.m.
Minutes approved as submitted and/or corrected this the 30th day of September, A.D.,
2013.
ATTEST:
Ed Baker
Secretary
om Reid
Chair
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