2009-3-20 TAX INCREMENT REINVESTMENT ZONE NO. 2 BOARD MEETING MINUTES Page 1 of 4 – 3/20/2009
MINUTES OF A SPECIAL MEETING OF THE TAX INCREMENT REINVESTMENT
ZONE NUMBER TWO (TIRZ # 2), ALSO KNOWN AS SHADOW CREEK RANCH,
CITY OF PEARLAND TEXAS, HELD ON MONDAY, MARCH 20, 2009, AT 4:00 P.M.,
IN THE TEMPORARY MUNICIPAL COURT ROOM LOCATED AT THE CITY OF
PEARLAND COMMUNITY CENTER, 3523 LIBERTY DRIVE, PEARLAND, TEXAS.
Boardmember Phillips called the meeting to order at 12:07 p.m. with the following
present:
Boardmember Donna Coleman
Boardmember Ken Phillips
Boardmember Jo Knight
Boardmember Ron Castillo
Boardmember Larry Loessin
Absent: Chair Nigel Harrison, Vice Chair Gary Cook, Secretary Mike Pyburn, and
Boardmember Gary Davis.
Others in attendance: Bill Eisen City Manager City of Pearland; Sonia Webb Deputy
City Secretary City of Pearland; Lynne Humphries Allen Boone Humphries Robinson
LLP; Sue Darcy March Darcy Partners; Tommy King Alvin Independent School District;
Jody Richardson Community Redevelopment Coalition.
NEW BUSINESS
BOARD ACTION – REGARDING PRESENTATION FROM COMMUNITY
REDEVELOPMENT COALITION REGARDING SCHOOL DISTRICT FUNDING
ISSUES AND AUTHORIZE CONTRIBUTION TO AND ENGAGEMENT OF
COMMUNITY REDEVELOPMENT COALITION FOR ACTIVITIES IN 2009
LEGISLATIVE SESSION. Ms. Lynne Humphries or Mr. Trey Lary with Allen Boone
Humphries Robinson LLP.
Boardmember Castillo made the motion, seconded by Boardmember Knight, to
authorize a $25,000 contribution to the Community Redevelopment Coalition for
activities in the 2009 Legislation Session.
Bill Eisen, City of Pearland City Manager, stated several years ago the State Legislature
was involved in the process of reforming how the school financing is performed in the
State of Texas. As a result of this the Legislature lowered the cap on operating tax
rates local school districts could charge. When this Legislation occurred there was a
concern that when the local tax rate was reduced for schools districts participating in a
Tax Increment Reinvestment Zone (TIRZ) then the TIRZ would end up losing money.
The Legislation specified the Texas Education Agency (TEA) would need to specifically
develop the rules which the TIRZ reimbursements could occur. This action has not
Page 2 of 4 – 3/20/2009
taken place. The current loss to the TIRZ is approximately $2,000,000. One possible
solution to this problem is possible modifications to the State Law that clarify for the
TEA how to calculate the amounts that are due to the TIRZ.
Tommy King, Alvin Independent School District, stated the school district has been
discussing this issue with the TEA, however, nothing has transpired from those
conversations. The school district has provided all the requested information. The
school district is due approximately $2.3 million from the TEA and he is not sure why
they have not taken any action to make payment.
City of Pearland City Manager Bill Eisen stated that it is evident the current resources
being utilized have not produced the desired results; however, there is an option
available to work with the Community Redevelopment Coalition (CRC) to help reach a
solution.
Lynne Humphries, Allen Boone Humphries Robinson LLP, stated the CRC is an
organization that gets involved when TIRZs have problems they need to be addressed.
This issue is important to the TIRZ because it is reducing reimbursement payments
being made to the developer and costing the TIRZ interest on that debt. The CRC has
the resources and ability to help the TIRZ resolve this situation.
Jody Richardson, Community Redevelopment Coalition, stated in 1999 it was
determined that a Tax Increment Finance was a way for school districts to keep a
greater share of local funding. This caused Legislation to be proposed to stop Tax
Increment Finance for school districts. The CRC was able to mobilize and fix it to where
certain school districts participating in certain TIRZ could be grandfathered. Ms.
Richardson continued to provide the Board with an overview of what the CRC has done
in the past and their future plans to protect the interest of TIRZs in Texas and stated
they would like to be paid $100,000 for their work and efforts this Legislative Session.
The total amount they are requesting would be paid $25,000 each from the four TIRZ
involved.
Boardmember Loessin stated he does not understand how the CRC has determined the
amount of $100,000 for their work.
Jody Richardson, Community Redevelopment Coalition, stated the number is based on
the potential hours and cost associated with the measures that have to be taken to
attempt to get the results the TIRZ needs to receive the payments owed to them by the
school district and the TEA.
Lynne Humphries, Allen Boone Humphries Robinson LLP, stated she is recommending
the TIRZ utilize the CRC to include the TIRZ in a larger group which will have more
impact when requesting help.
Boardmember Jo Knight stated she does not believe $25,000 is too large of an amount
to pay if it will help Alvin Independent School District get access to $2.3 million.
Page 3 of 4 – 3/20/2009
Boardmember Loessin asked if the other TIRZ Boards have committed to making their
share of the payment.
Jody Richardson, Community Redevelopment Coalition, stated the other TIRZ Boards
have not committed, but there is an understanding that they plan to commit to the
payment. The CRC will perform the work to help the TIRZ even if they do not receive
the full payment from each prospective TIRZ.
Sue Darcy, Marsh Darcy Partners, stated the TIRZ Board owes the Developer millions
of dollars and is accruing interest on that debt. Having the ability to pay this debt will
save the Board more than $25,000 in interest.
Boardmember Phillips asked if this issue is not resolved in the regular session and has
to be discussed in the special session of the Legislature will there be an extra fee.
Jody Richardson, Community Redevelopment Coalition, stated she will have to discuss
that issue with her partners.
Discussion ensued between the Board and Jody Richardson, Community
Redevelopment Coalition (CRC), regarding the options for the school district funding
issues.
Voting “Aye” Boardmembers Phillips, Knight, Castillo, and Loessin.
Voting “No” None.
Voting “Abstain” Boardmember Coleman.
Motion Passed 4 to 0, with 1 abstention.
ADJOURNMENT
Meeting was adjourned at 12:50 p.m.
Page 4 of 4 – 3/20/2009
Minutes approved as submitted and/or corrected this the ____ day of ______________,
A.D., 2009.
_____________________________
Nigel Harrison
Chair
ATTEST:
_____________________________
Mike Pyburn
Secretary