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R2020-180 2020-09-28RESOLUTION NO. R2020-180 A Resolution of the City Council of the City of Pearland, Texas, authorizing the City Manager or his designee to enter into a Letter Finance Agreement with Reinvestment Zone No. 2, City of Pearland, Texas, associated with the Shadow Creek Park Project (Phase II). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain Letter Finance Agreement between the City and Reinvestment Zone No. 2, City of Pearland, Texas, a copy of which is attached hereto as Exhibit "A" and made a part hereof for all purposes, is hereby authorized and approved. Section 2. That the City Manager or his designee is hereby authorized to execute and the City Secretary to attest the Letter Finance Agreement attached hereto. PASSED, APPROVED and ADOPTED this the 28th day of pte ber, A. , 2020. TOM REID MAYOR ATT APPROVED AS TO FORM: Q 4 1 C DARRIN M. COKER CITY ATTORNEY REINVESTMENT ZONE NO. TWO, CITY OF PEARLAND, TEXAS September 23, 2020 The Honorable Tom Reid City of Pearland 3519 Liberty Drive Pearland, Texas 77581 Re: Financing for TIRZ Improvements: Shadow Creek Ranch Park Phase II; TIRZ Project No. 20-09-001 Dear Mayor Reid: The City of Pearland, Texas (the "City") and Reinvestment Zone No. Two, City of Pearland, Texas (the "Zone") have determined to proceed with the following TIRZ Improvements, as contemplated by the Fourth Amendment to Project Plan and Reinvestment Zone Financing Plan: Shadow Creek Ranch Park Phase II; TIRZ Project No. 20-09-001 Attached to this letter is a map showing the area which is benefited by the TIRZ Improvements over which the available Tax Increment will be applied for purposes of determining when reimbursement is made. The City has agreed to pre -finance the design and construction of the TIRZ Improvements and the Zone agrees to reimburse the City pursuant to the terms of TIRZ Project Implementation and Reimbursement Process. The Zone hereby gives its approval of the above described TIRZ Improvements. All applicable procedures set forth in the document entitled "TIRZ Project Implementation and Reimbursement Process" must be followed. The Zone's Engineer has determined that the budget (using 2020 dollars) established in the Zone's Fourth Amendment to Project Plan and Reinvestment Zone Financing Plan for the above described TIRZ Improvements is $10,179,283, which includes construction cost, design cost, associated response apparatus, and contingency. The Zone is not obligated to reimburse the City for any amount in excess of that budgeted amount. 887573 1 This agreement was duly authorized at a meeting of the Board of Directors of the Zone held on the 23th day of September, 2020. Very truly yours, REINVESTMENT ZONE NO. 12 CITY OF PEARLAND, TEXAS (SHADOW CREEK RANCH) ATTEST: By: /s/ Herb Fain Chairman, Board of Directors Bv: /s/ Ali Hasanali Secretary, Board of Directors 887573 2 PASSED AND APPROVED this 2g` day of SQ kMb9=AL 2020. CITY OF PEARL D, T A Tom Reid Mayor AT ST: Crysta Roan +nterin°r City Secretary 887573 3 IJ4 LJA ENGINEERING September 23, 2020 3600 W Sam Houston Pkwy S, Suite 600, Houston, Texas 77042 t 713.953.5200 LJA.com TBPE F-1386 TBPLS 10110501 Board of Directors Reinvestment Zone No. 2, City of Pearland, Texas City of Pearland, Texas 3519 Liberty Drive Pearland, Texas 77581 Re: Project # 20-09-001, Shadow Creek Ranch Park Phase II Reinvestment Zone No. 2, City of Pearland, Texas LJA Project No. 1546-0000 (2.0) Dear Board of Directors: We have determined that the referenced project, as proposed, is included in the adopted TIRZ Project Plan. The budget for the proposed improvements totals $10,179,283, which includes construction cost, design cost, and contingency for the Shadow Creek Ranch Park Phase II Improvements as shown on the attached exhibits. Attached is a budget status report that illustrates the remaining balances within the 4th amendment of the TIRZ budget and shows the proposed budget for the above referenced project. If you have any questions or concerns regarding this matter, please contact our office. Sincerely, James D. Ross, PE Engineer for Reinvestment Zone No. 2 JDR/em Attachments Copy: Ms. Lynne B. Humphries — Allen Boone Humphries Robinson LLP Mr. Clay Pearson — City of Pearland, Texas 0 UA Engineering, Inc. Reinvestment Zone No. 2, City of Pearland, Texas Shadow Creek Ranch Letter Finance Agreement 20-09-001 Shadow Creek Ranch Park Phase II Proposed Budget from 4th Amendment Item Infrastructure Streets Pavement Sidewalls Landscapring and Irrigation Entry Monuments Lighting Broadway Widening and Signali2ation Business Center Drive Paving Memorial Hermann Drive Paving Water System Wastewater System Storm Water Sysem Lakes and Channels Improvements Land Cost Detention and Drainage Land Cost Beautificaiton/Deepening/Pond Creation Site Drainage Facilities Park and Recreation Improvements Land Cost Landscaping Business Center Drive Memorial Hemann Drive Overhead Utilities Placed Underground Pipeling Relocation Major Improvements Water Plants Land Cost WWTP Lift Station Traffic Signals MCHard Road Reimbrusables Miscelaneous Signal SH 288 Access Road FM 5181mprovemens Broadway /FM 518 Improvements Contingencies and Engineering Contingencies (10%) Engineering (15%) Master Drainage Plan Costs Enviornmental Study Costs Shadow Creek Ranch Park Phase II Shadow Creek Trail - SCR Park Trail to Kirby and SCR Trail System Shadow Creek Trail Phase II - Along Clear Creek Relief Ditch & Library Trail Shadow Creek Parkway Landscaping, Street Lighting & Sidewalks Intersection Improvements (BCD/SCP, BCD/Broadway, etc) Sidewalk Extensions Subtotal Zone Administration/Creation TIRZ Administration (1-3 years) Reimbursable TIRZ Creation Costs Annexation Casts Plan Amendment Costs Subtotal Infrastructure Total City Facilities Library Improvements Land Costs Fire/Police Station Improvements Land Costs City Facilities Total Educational Facilities AISD Elementary School AISD Jr. High School AISD Fresh/Soph Campus FBISD Elementary School FB SO Middle School Educational Facilities Total Grand Total September 23, 2020 Jan. 2018 ENR Index= 10878 Jan. 2020 ENR Index = 11392 Adjustment = 4.73% $28,192,621 $27,424,861 $28,720,722 Shadow Creek Ranch $18,541,439 $14,253,174 $0 $0 Park Phase II $0 $9,878,439 4th Amendment Funds 4th Amendment Funds 4th Amendment Funds 4th Plan Available for Future Available for Future Available for Future Amendment TIRZ Projects (2018 TIRZ Projects (2020 Recommended for TIRZ Projects (2020 2018 Dollars) Dollars) Dollars) Approval (2020 Dollars) Dollars) $9,720,000 $9,720,000 $10,179,283 $10,179,283 $0 $767,760 $0 $0 $0 $1,470,000 $1,470,000 $1,539,459 $1,539,459 $7,140,000 $7,140,000 $7,477,375 $7,477,375 $7,957,160 $7,957,160 $8,333,146 $8,333,146 $1,137,701 $1,137,701 $1,191,459 $1,191,459 $28,192,621 $27,424,861 $28,720,722 $10,179,283 $18,541,439 $28,192,621 $27,424,861 $28,720,722 $10,179,283 $18,541,439 $14,253,174 $0 $0 $0 $9,878,439 $0 $0 $0 w:%—\-6\nae n—\2-osaot\20gsm1- Am dorms e�eges.ds. 5 VICINITY MAP 112 4?� 9'#! "r9► /mac— " °"� � '• �M• ^►� A� ,..� ! Shadow Creek Ranch Park Phase Ila AW v ..• lot - +... F y 4 _ a 1:4.800 1 Inch = 400 fcct e t t'•� NORTH \, rti,w.,. .nr w.d ..M �s re IM+.•d v m w�tr r..a+ ++o�••v rl CLEAR CREEK P-4 P-3 P_2 ��qkF UT MEDICAL CENTER p-1 C -19B S SAY MF -7 C_1.7.A. C-16 P__4 UT MEDICAL CENT,ER.UT MEDICAL CENTER C -47B MF -3 DS -3 YMCA CITY OF C -19A C-18 PEARLANDI DC -3 MF -9 _ STP °) I SCH-6 C-22 C -21B VIZI L-2C-21AUT MEDICAL CENTER C -20B C-1 SF -45 I 0A SF -31 FM 223a 1BC-2 HCA SCH-1 C-7 TH-1 'DS -8 SF -45 C-4 CH -3 CH 4 C-5 CH -1 SF -33 SF -32 SF -3 MF -5 C-9 SF -47 DS -1 SF -1 SF -2 SF -62 DS -6 SF -20 SF -21 SF -46 SCH-2, SF -19 SF -34 C-10 C-11 SF -48 SF -35 SF -4 SF -5 SF -8 S F=61 �S F-22 SF -48 SF -37 p SF -23 CH -2 C-12 C-13 SF -49 ,' a.w SF -6 SF -6 SF -36 SF -24 'w SF -7 2 DS -2 SF -25 Off - S H SF -38A C-14 y hN SF -50 MF -6 '7 SF -12 SF -11 SF -51 SF -26 SF -9 SF -54 SF -38B SF -10 DS -9 C-15 DS -7 SF -39 SF -27 SF -14 SF -39 SF -13 SF -40 SF -53 SCH-4 CH -5 SF -28 SF-55ISF-17 SF -56 SF -41 DC -2 SF -20 SF -15 SF -42 REC-2 DS -2 SF -16 REC-3 DC -5 SF -56 SF -57 -SF-43 SCH-5 MF -2 SF -30 SjCH-3 SF -18 MF -1 MF -4 SF -44 I t C-3 -1A c R F _CJ C SF -83 C SF -71 SF -82 DS L/P SF -86-B SF -84 SF -72 SF -86 SF -85 DS SF -73 REC SF -74 SF -75 DS SF -76 SF -77 N SF -78 SCALE: 1" = 2,000 FEET SF -8 SF -79 I SF -80 F1 7 BENIFITTED AREAS REINVESTMENT ZONE NO. 2, CITY OF PEARLAND, TEXAS SHADOW CREEK RANCH PROJECT NO. 20-09-001 LJA "naming, I=. SPA 0-,.ek Pax '1195162:c Hauvry lRn TN\: fJ �»e Wdw"ly.m, FRY F6;CiJf6 EXHIBITNO: JOB NO: DATE: .10121%2019 0 0 CITY OF PEARLAND REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS TIRZ PROJECT IMPLEMENTATION AND REIMBURSEMENT PROCESS June 30, 1999 SHADOW CREEK RANCH Page 3 of 19 6 0 TIRZ Project Implementation and Reimbursement Process To begin the process of planning, design, construction and reimbursement under the TIRZ Plan, the TIRZ and the Developer/Sub-developer will sign a reimbursement agreement that establishes the extent of TIRZ Improvements (the "Project") and the terms and conditions under which the Project will be eligible for reimbursement. The reimbursement agreement, once executed, shall constitute the approval by the TIRZ for the Developer/Sub-developer to proceed with construction of the Project. The reimbursement agreement will establish: (1) the quantitative and qualitative aspects and character of the Project, (2) the maximum costs to be reimbursed for the Project, (3) a checklist of requirements for implementing and completing the Project for reimbursement, and (4) the procedures for the review of the Project for the purposes of the TIRZ approving reimbursement of the Project costs once construction is completed (5) the incremental assessed valuation criteria which must be aclueved before rchiabursci7tents shay conunca2cc. The maximum costs to be reimbursed to the Developer/Sub-developer for the Project shall be established in the reimbursement agreement, based on the TIRZ Engineer's determination of the scope of TIRZ capital improvements that are consistent with the TIRZ Plan in the development of the Developer/Sub-developer's development area. The quantitative and qualitative aspects and character of the Project shall be as depicted in the Project and Financing Plan, the PUD, the Development Agreement, Shadow Creek Ranch Design Guidelines and other, related documents made available to the Developer/Sub-developer. These shall establish the over-all intent of the development for Shadow Creek Ranch TIRZ, including those portions of the master plan improvements constituting the Project to be undertaken by the Developer/Sub-developer under the reimbursement agreement. The procedures for the design and construction of the Project shall be as follows: Prior to commencing construction, the Developer/Sub-developer shall prepare all necessary plans and sperifivn inn- which shall he apprnved by all regulatory authorities having jurisdiction; 2. Developer/Sub-developer shall bid all contracts in accordance with Texas competitive bidding laws for public improvements and in accordance with any requirement of the City and in full compliance with the rules and regulations of airy local, regional, state or federal agencies having jurisdiction, and shull comply with all policies of the City as they may be in effect from time to time; DeveloperlSub-developer shall cunstr Ut (lie pruject ill a"Oldanc;c with all local and state law for construction of public improvements; 0DMAWH0OMA:,Ao"stm;07924,1 Page 4 of 19 r1 Developer/Sub-developer shall obtain inspections and approvals in accordaneo with all of the City of Pearland's processes and procedures, and with the processes and procedures of any authority or agency having jurisdiction; the Developer/ Sub - developer shall be responsible for any City of Pearland or other agency review and/orsnSpection fees. Developer/Sub-developer shall obtain inspections and approvals from Shadow Creek Ranch Maintenance Association (SCRMA); and Developer/Sub-developer shall submit documentation demonstrating that the Project was coinpleted in accordance with the terms of the reimbursement agreement as substantially set out in the check list specified below. The checklist of requirements for TIRZ reimbursement and completing the Project include but are not limited to the following: _ Recorded Plat _ Approved Plans and Specifications City of Pearland-approved form of Contract for Construction Bid NoticeBid Advertisement Affidavits Bid Tabulation Recommendation of Award Payment, Performance and Maintenance Bonds insurance Certificates Executed Contract for Construction T Notice To Proceed Testing and Inspection Reports ____ Certified Pay Applications Approved Change Orders Certificates of Completion _._ Letters of Acceptance (incl. City of Pearland) Consent of Surety for Final Payment _ Contractors' Unconditional Release of Liens Signed Record Drawings For all TIRZ Improvements included in the Plan, the completed documentation shall be submitted to the TIRZ Administrator and shall be reviewed for compliance with the reimbursement agreement by the '1127 Engineer and the TIRZ Auditor (the "TIRZ Consultants"). The TIRZ Auditor will confirm with any Municipal Utility District ("MUD") in which a Project is located that the Developer/Sub-Developer is not being reimbursed for the Project by the MUD. All TUtZ Consultants' costs associated with the review of the Developer/ Sub -developer reimbursement review documentation shall be paid by the Developer/Sub-developer upon the ::ODM11fiMNODMAVio4mtm:47!929.1 Page 5 of 19 submittal ofthe rciinbursanaat packagc, Ti)e TIRZ COl1Su1ta11tS will iCViCW the dVCULIIClltdtiull to verify that the costs for the Project are eligible for TIRZ reimbursement undcr the terms and conditions specified in the reimbursement agreement. Once the review of the submitted package is complete, the TIRZ Consultants shall make a recommendation to the TIRZ Beard in conformance with the reimbursement agreement. When approved, the Project reimbursement costs will be logged for priority of reimbursement as established by the reimbursement approval date and the Project and Financing Plan. If appropriate, the TIRZ Board will recommend to the City to reimburse the Developer/Sub- developer when increment from the Project becomes available. ::OOMAUN}1QDNA'3{atcivo'.9T91a;1 -3 - Page 6 of 19 MINUTES OF THE BOARD OF DIRECTORS MEETING TAX INCREMENT REINVESTMENT ZONE NUMBER TWO / SHADOW CREEK RANCH CITY OF PEARLAND TEXAS OCTOBER 28, 2019 2:00 P.M. CITY HALL ANNEX BUILDING, 3523 LIBERTY DRIVE, PEARLAND, TEXAS. I. CALL TO ORDER AND ROLL CALL Chair Fain called the meeting to order at 2:00 p.m. and declared a quorum with the following Directors present: Chair Herb Fain Vice Chair Gary Cook Director Buck Stevens Director Tommy King Director Ken Phillips Director Geoff Tonini Director Ali Hasanali Chair Fain asked those present to introduce themselves and noted that Directors Knight and Loessin were absent. Others in attendance: Tom Reid, Mayor City of Pearland; Cynthia Pearson, Director of City Finance; Rhonda Daugherty, Assistant Director of City Finance; Trent Epperson, Assistant City Manager; Jon Branson, Deputy City Manager; Lynne Humphries, Allen Boone Humphries Robinson LLP; Drew Pelter, Shadow Creek Development; James Ross, LJA; Sue Darcy, Alan Mueller, and Jan Buehler, Marsh Darcy Partners. II. PURPOSE OF THE MEETING: 1. Consideration and Possible Action - Regarding the Regular Meeting Minutes of the September 24, 2018, Tax Increment Reinvestment Zone Number 2 (TIRZ No. 2) Board of Directors Meeting. A motion by Director King to approve the Regular Meeting Minutes of September 24, 2018 as presented was seconded by Director Tonini, and passed unanimously. 2. Consideration and Possible Action - Financial Report for the period ending September 30, 2019 (unaudited). Ms. Daugherty reviewed the Income Statement through September 30, 2019 noting current date revenue total of $31,926,668.38, current date expenditures of $31,926,668.38, with a net gain of $570,219.75. The current year fund equity balance is $9,581,330.18. A motion by Director Phillips to approve the Financial Report as presented was seconded by Director Stevens, and passed unanimously. 3. Consideration and Possible Action - Investment Report for the Quarter Ending June 2019. Ms. Pearson presented the Investment Report for the period ending June 30, 2019 noting the portfolio market value and interest earned represented by cash and money market funds. She reviewed the distribution and holdings reports noting the total book value is $21,809,744. Director Hasanali asked whether, in light of economic fluctuations, there would be any Page 1 of 4 — 10/28/19 adjustments in the investment portfolio, to which Ms. Pearson advised that the funds are not invested in anything considered high risk and are invested per the City's Investment Policy. A motion by Director Hasanali to approve the Investment Report as presented was seconded by Director Tonini and passed unanimously. 4. Consideration and Possible Action — 2018 Annual Report. Mr. Mueller presented the Annual Report for 2018 noting the standard format which covers the calendar year. He reviewed the updated description of the zone to include the 4th Plan Amendment and revised budget, and the status of LFAs and bond issues. Director King asked whether any additional bond sales were anticipated, to which Mr. Mueller replied that bonds were issued within the year and it is reviewed annually by the Zone financial advisor. A motion by Director Tonini to accept the 2018 Annual Report as presented was seconded by Director Hasanali, and passed unanimously. 5. Consideration and Possible Action — Ratification of invoices authorized for payment by the Invoice Review Committee. Mr. Mueller stated the Invoice Review Committee (IRC) consists of Directors King and Fain who review consultants' invoices on a monthly basis. The list of invoices from the past year that were reviewed and recommended by the IRC for payment which was processed and was presented to the Board with the request to ratify the actions of the committee for the past year. Discussion followed with all questions being answered satisfactorily. A motion by Director Phillips that the action of the Invoice Review Committee be ratified and approved was seconded by Director Tonini, and passed unanimously. 6. Consideration and Possible Action — Recommendation to City Council of Plan Amendment #5. Mr. Mueller stated that the process to amend the Project Plan requires a recommendation by the TIRZ Board with a notice to the participating entities, then to City Council for final approval or disapproval of an amendment to the Plan. Plan Amendment #5 encompasses additional allocation for the library project at the request of Brazoria County and a new project for FM 521 improvements at the request of Fort Bend County. Director Hasanali expressed the necessity of the expansion advising that the Fort Bend County Commissioners strongly encourage to pass the amendment as presented. Director Tonini requested clarification that Alvin ISD had been given a chance to participate in the expansion of the library and they chose not to, which was confirmed by Mr. Epperson. A motion by Director Stevens to recommend Plan Amendment #5 to the City Council for approval was seconded by Director Phillips, and passed unanimously. 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 Mr. Mueller reminded of the purpose of Letter Finance Agreements (LFA) noting that the form used by LJA is the same for each presented. Director King requested clarification whether the Page 2 of 4 — 10/28/19 projections in agenda item #10 reflect any cash needs for the projects; to which Mr. Mueller replied that all four projects are included in the projection and all are pre -financed, taking no direct funding from the TIRZ. A motion by Director Phillips to approve all four LFAs subject to City Council action to approve Amendment #5 was seconded by Director Hasanali, and passed unanimously. 8. Discussion Item — Development Authority of Pearland Tax Increment Contract Revenue Bonds, Series 2019. Mr. Mueller advised that bonds issued by the Development Authority of Pearland in October will be funded in November. The principal amount of $4,255,000 funded $4,091,000 in developer reimbursement. Mr. Mueller referred to the Final Debt Service Requirements of the Development Authority of Pearland as information only. No action was required. 9. Discussion Item — Developer reimbursements from Development Authority of Pearland available surplus increment. Mr. Mueller stated that the Development Authority of Pearland (DAP) met in August at which time $3.8 million was transferred from the TIRZ to the DAP. He noted that $6,155,147 was available to be released from the DAP to make developer reimbursements. The total reimbursements for the year of $10.1 million included cash of $6,155,147 and bond proceeds of $4,091,000. No action was required. 10. Discussion Item — LFA tracking report and financial projection update. Mr. Mueller presented the updated LFA tracking sheet prepared by the Zone auditor, McGrath & Associates, as of October 1, 2019. He pointed out payments made to Shadow Creek Ranch Development Company representing full reimbursement. The remaining cash and bonds will be applied to the LFA for Shadow Creek Ranch Retail. Mr. Mueller reviewed the financial projection maintained by Marsh Darcy Partners which included all LFAs through Amendment #5. The Cash Flow Projection for the TIRZ fund indicates an ending balance in 2029 of $1,711,246 which includes all LFAs. 11. Discussion Item — Comments by Mayor Reid, TIRZ Board Members or TIRZ Consultants. Mayor Reid presented a Proclamation by the Office of the Mayor of the City of Pearland to Gary Cook for his vision and contribution to the City. Mr. Cook expressed his appreciation to all members of the team and Mayor Reid for leadership and dedication. Chairman Fain read a Commemorative Resolution from the City of Pearland Tax Increment Reinvestment Zone No. 2 Board of Directors expressing gratitude to Gary Cook and honoring him for his service. Mr. Cook acknowledged the contributions of Drew Pelter since 2000. Mr. Cook presented his letter of resignation from the board. Director Hasanali asked Ms. Humphries whether there is anything statutorily that has changed with the new legislative session and with current propositions on the ballot that would affect what the TIRZ is doing. Ms. Humphries advised that there is nothing known affecting the TIRZ. Director Tonini asked on behalf of the school district whether there would be any possibility of extending the TIRZ with regard to financial planning, and stated that the school district would appreciate guidance in the future. Mr. Mueller responded that, at this time, there would not be anticipation of terminating early and extension could be reviewed. Page 3 of 4 — 10/28/19 III. ADJOURN There being no further business, Director Tonini moved to adjourn at 3:08pm, which was seconded by Director Phillips. APPROVED: /s/ Herb Fain Herb Fain Chair, Board of Directors ATTEST: /s/ Ali Hasanali Ali Hasanali Secretary, Board of Directors Minutes approved as submitted and/or amended on September 23, 2020. Page 4 of 4 — 10/28/19