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2021-10-18-TIRZ NO. 2 MEETING AGENDATAX INCREMENT REINVESTMENT ZONE NUMBER TWO (TIRZ NO 2), ALSO KNOWN AS SHADOW CREEK RANCH, CITY OF PEARLAND TEXAS REGULAR MEETING October 18, 2021 4:00 P.M. CITY HALL ANNEX 3523 LIBERTY DRIVE I TRAINING ROOM PEARLAND, TEXAS 77581 I. CALL TO ORDER AND ROLL CALL II. PUBLIC COMMENTS III. PURPOSE OF THE MEETING 1. Consideration and Possible Action — Regular Meeting Minutes of February 4, 2021, Tax Increment Reinvestment Zone Number 2 (TIRZ No. 2) Board of Directors Meeting. 2. Consideration and Possible Action - Financial Report for the period ending July 31, 2021 (unaudited). 3. Consideration and Possible Action — Investment Report for the Quarter Ending June 2021. 4. Consideration and Possible Action — 2020 Annual Report 5. Consideration and Possible Action — Ratification of invoices authorized for payment by the Invoice Review Committee and approving invoices presented for payment. 6. Consideration and Possible Action — New Letter Finance Agreements a. Amend LFA 20-09-001 (Project Area Map Revision) • 7. Consideration and Possible Action — Completed Letter Finance Agreements 8. Consideration and Possible Action — Ratification of Development Authority of Pearland developer reimbursements from available surplus increment. 9. Discussion Item — LFA and financial projection update 10. Discussion Item — City of Pearland projects update 11. Discussion Item — Comments by Mayor Cole, TIRZ Board Members or TIRZ Consultants IV. ADJOURN. Sue Darcy, Marsh Dare Partners, Inc. On Behalf of the Board -Continued on next page- TAX INCREMENT REINVESTMENT ZONE NUMBER TWO (TIRZ NO. 2), ALSO KNOWN AS SHADOW CREEK RANCH, CITY OF PEARLAND TEXAS REGULAR MEETING OCTOBER 18, 2021 14 00 P.M. In Accordance with the provisions of the Americans with Disabilities Act (ADA), persons in need of a special accommodation to participate in this proceeding shall, within three (3) days prior to any proceeding, contact the City Secretary's office at (281) 652-1840. I certify that e t� ing � r (Vj of this notice of the Tax Increment Reinvestment Zone Number Two, Regular 33, 021, was posted at City Hall, 3519 Liberty Dr., Pearland, TX 77581 on 2021 by p.m. • Cryst.' N. Roan, TRMC, CMC City Secretary All agenda supporting documents are available at www.pearlandtx.gov DRAFT FOR BOARD APPROVAL REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS 6 • I tp qt.A t. -. • ANNUAL REPORT 2020 TABLE OF CONTENTS City of Pearland, Texas, City Council 3 TIRZ Board of Directors 4 Description of the Zone 5 Purpose of the Zone 6 State of the Zone and Plan Implementation in 2020 7 TABLES TABLE A. Taxing Entity Percent Participation 7 TABLE B Base Values by Jurisdiction 8 TABLE C Revenue Fund Balance by Year 8 TABLE D. Project Plan & Reinvestment Zone Financing Plan Budget 10 TABLE E. Outstanding Debt as of Fiscal Year End .. .12 TABLE F Letter Finance Agreements Approved for Reimbursement 13 APPENDICES Exhibit 1 Zone Boundary Map 16 Exhibit 2. Amended Zone Boundary Map... . .... .... . . 17 Exhibit 3- Development Status— 1999 vs 2019 18 COMPLIANCE Texas Tax Code Section 311.016 (a): (1) .. 7 (2) 9 (3) 12 (4) 14 (5) 14 2 CITY OF PEARLAND, TEXAS CITY COUNCIL 2020 Council Members Mayor Hon. Tom Reid (until Nov 2020) Hon Kevin Cole (as of Nov 2020) Mayor Pro-Tem Hon Adrian Hernandez, Position 4 Council Member Hon Luke Orlando, Position 1 Hon. Tony Carbone, Position 2 Hon Gary Moore, Position 3 (until Nov 2020) Hon Alex Kamkar, Position 3 (as of Nov 2020) Hon J David Little, Position 5 Hon. Trent Perez, Position 6 Hon. Woody Owens, Position 7 City Manager Clay Pearson 3 REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS BOARD OF DIRECTORS 2020 Board Members Position 1 Buck Stevens State Senator Designee Position 2 Thomas King State Representative Designee Position 3 Herb Fain, Jr , Chair (resigned 10 11 2020) Kenneth R Phillips, Chair (appointed 11 09 2020) City of Pearland Designee Position 4 Henry Fuertes (appointed 11 .09.2020) City of Pearland Designee Position 5 Michael Slevens (appointed 11 09 2020) City of Pearland Designee Position 6 Jo Knight (resigned 09.16.2020) David Selsky (appointed 11.09.2020) City of Pearland/Alvin Independent School District Designee Position 7 Geoff Tonini Alvin Independent School District Designee Position 8 Ali Hasanali Fort Bend County Designee Position 9 Larry Loessin Brazona County Designee 4 DESCRIPTION OF ZONE In accordance with the Tax Increment Financing Act (Chapter 311, Tax Code), Reinvestment Zone Number Two, City of Pearland, Texas (the Zone) was established by Ordinance 891 of the City Council of the City of Pearland (the City), Texas on December 21, 1998 The original Zone, also known as "Shadow Creek Ranch", consisted of 3,467 acres located in Brazona County and Fort Bend County, Texas In addition, the Zone is located in Alvin I S D (AISD), Fort Bend I.S.D. (FBISD) and a small portion in Pearland I S D (PISD) The original Zone is generally bounded by Clear Creek on the north, State Highway 288 on the east, Broadway (the extension of FM 518 west of S.H. 288)on the south and FM 521 on the west A map illustrating the original boundaries of the Zone follows on page 15 as Exhibit 1 On August 23, 1999, by Ordinance No 918 of the City, the Project Plan and Reinvestment Zone Financing Plan (the Project Plan) for the original TIRZ boundaries was adopted. 8t 1 Plan Amendment On July 10, 2006, by Ordinance 1276 of the City, the Project Plan was amended and the Zone was expanded to provide for the annexation of 457 acres of vacant land, adjacent to the Zone 288 acres are in Brazoria County and 169 acres are in Fort Bend County nd 2 Plan Amendment On November 13, 2006 by Ordinance 1312 of the City, the Project Plan was amended to provide for development of public improvements to serve Shadow Creek Ranch Town Center The proposed development is within the boundaries of the original Zone and Brazona County rd 3 Plan Amendment On November 13, 2006 by Ordinance 1313 of the City, the Project Plan was amended and the Zone was expanded to provide for the annexation of 8+ acres to facilitate the improvement and widening of Broadway from S H 288 to F.M 521 The boundaries of the annexed area are within Brazona County. The Zone is now composed of 3,932+ acres, of which 3,125+ acres are within Brazona County and 807+ acres are within Fort Bend County. A map illustrating the boundaries of the Zone as expanded follows on page 16 as Exhibit 2 4th Plan Amendment On August 13, 2018, by Ordinance 1562 of the City, the Project Plan was amended to increase the budget amounts for various categories of improvements to fund public safety, library, parks and recreation, landscaping, and transportation projects All proposed projects were within the previously approved Infrastructure budget category. This amendment was necessary to update cost estimates and to meet the level of service expected from current residents that could not be anticipated at the time of the original Zone creation 5th Plan Amendment On December 9, 2019, by Ordinance 1585 of the City, the Project Plan was amended to increase the budget amounts for the infrastructure and city facility categories of improvements to fund a portion of the FM 521 improvement project and additional funds for the library project The currently projected increment for the remaining life of the Zone is exceeding original expectations such that sufficient increment is projected to be available to fully fund this amendment 5 PURPOSE OF ZONE The objective of the Zone is to facilitate quality mixed-use development with a self-sustaining tax base for the City and the other participating taxing entities. The City Council, in adopting the ordinances creating and expanding the Zone, found that the development described in the Project Plan, and its subsequent amendments, would not likely occur, to the quality, standards and densities described in the Project Plan, but for the creation of the Zone The City Council further found that improvements in the Zone will significantly enhance the value of all taxable real property in the Zone and will be of general benefit to the City The Zone will pursue its objective by acting as a financing vehicle for regional public improvements, as described in the Project Plan as amended The methods of financing and the sources of funding available to the Zone, including the participation levels of the various participating entities, including the City, Brazona County, Fort Bend County and Alvin ISD, are described in the Project Plan and its amendments 6 STATE OF THE ZONE AND PLAN IMPLEMENTATION IN 2020 1 The information provided in this section is in accordance with § 311 016 (a) (1) of the Texas Tax Code, which requires inclusion of the amount and source of revenue in the tax increment fund established for the zone. In addition to the City's tax increment revenue, interlocal agreements with Brazona County, Fort Bend County and Alvin ISD provide for each taxing unit's participation in the Zone The Project Plan also allows for the participation of Brazona Drainage District No. 4 and Fort Bend Independent School District, though neither is currently participating Levels of participation are detailed in the Project Plan and current levels of participation are shown in Table A The zone is currently in its twentieth year. TABLE A Taxing Entity Participation Taxing Entity Zone Years Participation City of Pearland 9 through 30 100% of taxes collected at current tax rate on Captured Appraised Value (1) Brazoria County 1 through 30 100% of taxes collected at current tax rate on Captured Appraised Value up to a tax rate of $ 1359, or if rate is less than$ 1359 then 38%of actual tax rate Fort Bend County 11 through 20 100% of taxes collected at current tax rate on Captured Appraised Value, up to a maximum tax rate of 468075(2) Alvin ISD 1 through 30 100% of taxes collected at current tax rate on Captured Appraised Value (3) (1) 64%to be repaid as an administrative cost, provided the TIRZ retain at least$255/$100 (2) In years 21 through 30 participation drops to 100%of 31205 (3) 75%to be used by AISD for the construction of educational facilities The obligations of the participating taxing jurisdictions, as defined in their respective interlocal agreements, include the timely deposit of tax increment into the City's tax increment revenue fund Table B illustrates the growth in appraised value from base year to tax year 2020 for each participating jurisdiction Table C illustrates the amount of the incremental revenue, which has been transferred to the increment fund These amounts are based upon actual taxes collected as of December 31, 2020 7 TABLE B Base Market Value by Jurisdiction (1) Taxing Entity Base Year Base Value 2020 Value (2) Captured Value Original Zone 1998 City of Pearland 7,172,980 2,540,964,522 2,533,791,542 Brazoria County 4,143,160 2,119,436,246 2,115,293,086 Fort Bend County 3,029,820 480,163,873 477,134,053 Alvin ISD 4,143,160 1,909,208,710 1,905 065 550 1st Plan Amendment(3)(4)(5) 2006 City of Pearland 4,381,680 362,112,719 357,731,039 Brazoria County 3,354,830 193,930,908 190,576,078 Fort Bend County 1,026,850 107,430,838 106,403,988 Overall Zone City of Pearland 2,903,077,241 2,891,522,581 Brazoria County 2,313,367,154 2,305,869,164 Fort Bend County 587,594,711 583,538,041 Alvin ISD 2,258,229,530 1,905,065,550 (1) The information in this table wes provided by the Brazoria and Fort Bend County Appraisal Districts and Assessments of the Southwest (2)Market value(less exemptions)as of January 1, 2020 (3)All of the land wethin the 2nd Plan Amendment(adopted in 2006)area is within the boundaries of the original Zone (4)All of the land within the 3rd Plan Amendment(adopted in 2006)area is either owned by a municipality or within dedicated ROW and thus tax exempt (5)Plan Amendment 4(adopted in 2018)and Amendment 5(adopted in 2019)did not add any additional land to the boundary of the Zone TABLE C City of Pearland TIRZ No. 2 Tax Increment Revenue &Fund Balance by Year -Current Year and Prior Five Years (1) Year 2015 2016 2017 2018 2019 2020 City of Pearland Revenue $ 10,624,549 $ 14,362,791 $ 15,978,750 $ 17,760,605 $ 18,318,960 18,232,418.14 Rebate to City for Administrative Costs (2) $ (6,803,968) $ (9,192,187) $(10,226,400) $(11,366,788) $(10,850,348) (12,581,844 27) Brazoria County Revenue $ 1,674,994 $ 1,809,824 $ 2,089,520 $ 2,282,782 $ 2,370,183 2,808,893 80 Alvin ISO Revenue (3) $ 4,933,323 $ 5,159,693 $ 6,015,299 $ 6,646,434 $ 6,675,668 6,768,945 42 Other Revenue $ 1,476,931 $ 1,663,842 $ 1,993,467 $ 1,999,108 $ 1,672,035 2,509,801.19 Fort Bend County Revenue $ 929,041 $ 1,339,271 $ 1,611,047 $ 1,807,656 $ 1,877,666 1,403,851 95 Expenditures for Zone Administration $ (22,208) $ (19,986) $ (37,912) $ (81,293) $ (51,644) (49,322 64) Transfers to Development Authority $(12,666,896) $(14,572,487) $(15,977,530) $(15,609,092) $(18,642,641) (22,544,541 68) Fund Balance (4) $ 2,510,500 $ 3,784,026 $ 3,863,404 $ 6,241,023 $ 4,779,083 119,149 77 (1) Source City of Pearland, Texas Fund balances as of 12/31 of each year (2) Rebate for admin costs prior to 2007 is 36% In 2007 the rebate increased to 64% (3)Note that Alvin ISD revenue is reported net of the 75% rebate to Alvin ISD (4) In addition to fund balance, as of 12/31/20, AISD had$6,749,649 15 in the suspense account 8 2. The information provided in this section is in accordance with §311 016 (a) (2) of the Texas Tax Code, which requires inclusion of the amount and purpose of expenditures from the fund. The Board of Directors of the Zone has been granted by City Council, in accordance with Section 311 010 of Texas Tax Code, the power to administer, manage, and operate the Zone and to implement the Project Plan. The Zone was created for the duration of 30 years, or until dissolved by the City The total cost of the public improvements within the Zone, as outlined in the original Project Plan, amounts to $294,482,034 Of this amount, the City will fund $35,471,061 worth of improvements, and the Texas Department of Transportation (TxDOT) will fund another $10,277,050 worth of improvements The Zone will fund the remaining improvements, which amounts to a cost of $248,733,923, unadjusted for inflation 1st Plan Amendment The original list of project costs was amended with the approval of the 1st Plan Amendment, which included improvements, estimated to total $34,724,218 These improvements address the water, wastewater, storm sewer, lakes channels, roads and landscaping costs for the 457+ acre annexation 2nd Plan Amendment The list of project costs was amended again with the approval of the 2nd Plan Amendment, which included improvements estimated to total $11,749,618 These improvements address major road infrastructure, detention, drainage, landscaping and the relocation of pipelines and overhead utilities All projects associated with this annexation have been completed. 3rd Plan Amendment The list of project costs was amended a third time with the approval of the 3rd Plan Amendment, which included improvements estimated to total $8 million This amendment addressed the need to fund and construct a section of Broadway All projects associated with this annexation have been completed. 4th Plan Amendment The list of project costs was amended a fourth time with the approval of the 4th Plan Amendment, which included improvements estimated to total $52,324,235. This amendment addressed the need to update the cost estimates for previously approved budget categories 5th Plan Amendment The list of project costs was amended a fifth time with the approval of the 5th Plan Amendment, which included improvements estimated to total $7,729,000. This amendment added an additional infrastructure project for FM 521 and updated the cost estimate for the library project These costs are detailed in the amended Project Budget, a copy of which follows as Table D The Zone as now enlarged is composed of 3,932+ acres, of which 3,125+ acres are within Brazona County and 807+ acres are within Fort Bend County. A map illustrating the boundaries of the Zone as amended follows on page 16 as Exhibit 2. 9 Table D Jan 1999 ENR Index=6000 Reinvestment Zone No.2,City of Pearland,TX Jan 2006 ENR Index =7600 Budget Jan.2018 ENR Index=10878 Jan 2019 ENR Index=11206 Item TIRZ Budget as 1st Plan 2nd Plan 3rd Plan 4th Plan 5th Plan TIRZ Budget as approved" Amendments Amendment Amendment Amendmentp, Amendment is Amendedp (08/23/99) (03/27/06) (10/23/06) (10/23/06) (06/18/18) (10/28/19) Infrastructure Streets Pavement 12,610,050 1,634,000 14,244,050 Si de wal is 1,859,400 1,859,400 Landscapring and irrigation 9,675,350 9,675,350 Entry Monuments 735,320 735,320 Lighting 125,900 125,900 Broadway Widening and Signalization 2831789 2,831.7W Business Center Drive Paving 852722 852.722 Memorial Hermann Drive Paving 383,107 383,107 Water System 3,026,863 363,000 3.389.863 Wastewater System 6,940964 1,029,000 7,969,964 Storm WaterSysem 10,195,776 1.649,000 11,844,776 Lakes and Channels Improvements 29,121,915 5,625,600 34,747 515 Land Cost 4,597,889 6,675,000 11,272889 Detention and Drainage Land Cost z850,000 2,850.000 Beautificaiton/Dee pen ing/Pond Creatic 200030 200..000 Site Drainage Facilities 1842030 1,842000 Park and Recreation Improvements 5,155,524 5,573,025 10,728,549 Land Cost 2,383,545 2,383.545 Landscaping Business Center Drive 157,500 157500 Memorial Hemann Drive 67,500 67,500 Overhead Utilities Placed Underground 1.200,000 1,200,000 Pi pe li ng Relocation 700.000 700,000 Major Improvements Water Plants Land Cost 20,000 20.000 WWTP 340.000 340,000 Lift Station 303,000 303000 Traffic Signals 600,000 550.000 1,150000 Mdiard Road Reimbrusables Miscelonerous 15Q000 150.000 Signal 100000 100A00 SH 288 Act.ss Road 1,000,000 1,003003 FM 518 I mproveme ns 6,485.600 6,4/35,600 Broadway/FM 518 Imp Improvements 7,100,000 7,100000 Contingencies and Engineering Contingencies(10%) 8,181,116 1.731620 9,914,736 Engineering(1596) 11,274,211 2,860,473 490,000 900,000 15524,634 Master Drainage Plan Costs 70.000 70.000 Enviornmental Study Costs 100,000 100000 Shadow Creek Ranch Park Phase II 9,720,000 9,720,000 Shadow Creek Trail-SCR Park Trail to 760 10rby and SCR Trail System 767, 767,760 Shadow Creek Trail Phase II-Along gear Creek Relief Ditch&library Trail 1,470.070 1,470,000 Shadow Creek Parkway Landscaping, 7.140.0D0 Street Lighting&Sidewalks 7,140,003 Intersection Improvements(BCD/SCP BCD/Broadway etc) 7,957,160 7,957 160 Sidewalk Extensions 1.137.701 1,137 701 FM 521 Expansi on Project 2,479,000 2,479,003 Subtotal 108,267,923 34,474,218 11,574,618 8,000,000 28192,621 2479,000 192,988,383 a)me original TICS budget as approved in 19)f dollars has not been adjusted for inflation. 12)The a mended Purities a s approved in 200e are shown in 2004 doll ars and new net seen a djused for inflation. SI The amended Sudpts as approved in 201a are shown in 201116011 ars and have not been adjusted for inflation. jal The amended 4.d pa as approved in 2019 are shown in 2019 doll ars and have not been adjusted for inflation ISITh.budget as amended shows budget line items as approved in their mspettive veers without edNstmentfor inflation. 10 Table D(continued) Item TIRZ Budget as 1st Plan 2nd Plan 3rd Plan 4th Plan 5th Plan TIRZ Budget as approved n Amendment'-- Amendment s Amendment ttl Amendment(3) Amendment 0) Amendedlsl (08/23/99) (03/27/06) (10/23/06) (10/23/06) (06/18/18) (10/28/19) Zone Administration/Creation TIRZ Administration(1 3 Years) 466,000 466,000 Reimbursable TIRZ Creation Costs 900,000 900,030 Annexation Costs 250,000 250,000 Plan Amendment Costs 175,000 175,000 Subtotal 1,366,000 250,000 175,000 1,791,000 Infrastructure Total 109,633,923 34,724,218 11,749,618 8,000,000 28,192,621 2,479,000 194,779,380 City Facilities Library Improvements 2,395,000 14,253 174 5,250,020 21,898,174 Land Costs 105,000 105,003 Fire/Police Station Improvements 2,255,000 9,878,439 12,133,439 Land Costs 245,000 245,000 City Facilities Total 5,000,000 0 0 0 24,131,614 5,250,003 34,381,614 Educational Facilities AISD Elementary School 41,600,000 41,600,000 AISD Jr High School 21,450,000 21,450,000 AISD Fresh/Soph Campus 34,050,000 34,050,000 FBISD Elementary School 11,000,003 11,003,000 FBISD Middle School 26,000,000 26,000,000 Educational Facilities Total 134,100,000 0 0 0 0 0 134,100,000 Grand Total 248,733,923 34,724,218 11,749,618 8,000,000 52,324,235 7729,000 363,260,994 (1)The original TIRZ Budget as approved In 1999 dollars has not been adjusted for inflation (2)The amended Budgets as approved in 2006 are shown in 2006 dollars and have not been adjusted for inflation (3)The amended Budgets as approved in 2018 are shown in 2018 dollars and have not been adjusted for inflation (4)The amended Budgets as approved in 2019 are shown In 2019 dollars and have not been adjusted for inflation (5)The Budget as amended shows budget line items as approved in their respective years without adjustment for inflation 11 TIRZ-Funded Projects: Since the creation of the Zone a series of infrastructure improvements have been funded and constructed. In 2020, one new Letter Financing Agreement(LFA)was approved LFA 20-09-001 for Shadow Creek Park Phase II improvements. City Funded Improvements • There were no City funded projects in 2020 TxDOT Funded Improvements. • There were no TxDOT funded projects in 2020 3. The information provided in this section is in accordance with §311 016 (a) (3) of the Texas Tax Code, which requires inclusion of the amount of principal and interest due on outstanding bonded indebtedness. Bond Issues In accordance with a Tn-Party Agreement dated October 11, 2004 between the TIRZ, the City of Pearland, and the Development Authority of Pearland (DAP), the TIRZ has pledged increment to provide for the repayment of debt issued on its behalf. In this regard, the DAP sold Tax Increment Contract Revenue Bonds in 2004, 2005, 2006, 2007, 2009, 2013, 2014, 2016, 2017, 2018, and 2019. Additionally, in 2015, the DAP sold Tax Increment Contract Revenue and Refunding Bonds, which refunded the then-outstanding bonds issued prior to 2013 TABLE E Development Authority of Pearland Outstanding Debt as of December 31, 2020 Tax increment Contract Principal Amount Principal Amount Total Debt Service Revenue Bonds Issued Outstanding Outstanding Series 2013 $9,150,000 $6,320,000 $7,613,299 Series 2014 $8,060,000 $4,925,000 $5,618,600 Series 2015 $66,030,000 $43,945,000 $50,150,689 Series 2016 $12,320,000 $9,045,000 $10,078,299 Series 2017 $8,555,000 $6,755,000 $7,555,055 Series 2018 $5,835,000 $4,975,000 $5,860,748 Series 2019 $4,255,000 $3,980,000 $4,370,309 Total $114,205,000 $79,945,000 $91,246,998 In addition to developer reimbursements made via the sale of bonds, the DAP has also made payments from cash reserves. In 2020 the DAP made direct payments to the developer totaling $12,615,582 Total direct payments as of the end of 2020 for the DAP is $97,443,569, all of which are reflected within in the reimbursements outlined in Table F Additional LFA's Approved for Reimbursement The Zone Board has approved a series of Letter Financing Agreements(LFA's)for reimbursement Prior to Board action all project costs related to each LFA were reviewed by the Zone's Auditor, McGrath & Co PLLC, and summarized in a reimbursement report, which included eligible project costs plus interest. Table F outlines Letter Financing Agreements approved through the end of 2020 12 TABLE F Letter Rnance Agreements Approved for Reimbursement Letter Rnance Agreement(LFA) LFA Date LFA Amount(1) Reimbursements Through 2020(2) Creation Costs 6/19/2000 $ 900 000 $ 1,235 408 LFA99 11 001(Entry) 11/8/1999 919 150 • 1 220,281 LFA00-01 001(V1P1A) 2/21/2000 6,524,629 5,243,529 LFA 00 10-002(V1 P18) 10/9/2000 10,318,290 10,593,290 LFA 01-04-001(V1 P1 B) 8/23/2001 1 967 061 805,884 LFA03.10-004(K Ingsley Drive Phase 3) 10/7/2003 3,529,173 2,791,877 LFA 04-07-006(Traffic Signal 7/13/2004 287,788 293,578 Shadow Creek PKW YlKingsley) LFA 04.07-007(Parks and Trails 7/13/2004 1 007 256 877,201 Grading and Infrastructure) LFA 03 10-001(Remaining Village 10/7/2003 7,554,654 8,493,040 2,Phase 2 Improvements) LFA 04-07-002(RrelPolice Station Land Cost) 7/13/2004 408,668 555,954 LFA 02-08-001(Village 1 and Village 8/6/2002 4,727,516 6,029,532 2 Phase 2 Improvements) LFA 01 11-002(Additional Village 1 and 11/12/2001 24,509,430 33,055,576 Village 2 Improvements) LFA 03 10-002(Village 3,Phase 1 and 10/7/2003 7 809,950 11 734,369 2 Improvements) LFA 06-03-001(Bementary School#2 Site) 3/27/2006 1,687,801 1,886,601 LFA O6-08.002(Library Site) 8/28/2006 481,569 557 100 LFA 04-07-003(Regional Nature Park) 7/13/2004 760,988 1 168,312 LFA 03 10-005(Kingsley Drive Phase 10/07/03 4,486,342 6,811,005 4 Improvements) LFA 0310.006(Village 5Improvements) 10/07/03 7,055,177 11,274 134 LFA 04-07-005(Village 4,Phase 1 and 04/07/05 3,354,452 5,223 786 Refelction Bay North Improvements) LFA 03 10-003(Village 3,Phase 3 Improvements) 10/07/03 7,711,582 12,811,167 LFA 04-07-004(Village 3,Phase 4 Improvements) 07/13/04 8,204,999 13,624,832 LFA 06-01-001(Kingsley Drive North) 01/31/06 6,417 644 10,329,448 LFA06-01-002(Additional Village 4 Improvements) 01/31/06 9,392,437 14,608,001 LFA 06-08-001(Additional Sidewalks) 08/28/06 2,356,305 2,833,779 LFA 06-01-003(Remaining Village 4 Improvements) 01/30/06 7 120,532 8,647,692 LFA 06-08-003(S.H.228 Frontage Road 08/31/06 1,276,667 1,661,235 LFA 07-03-001(Village 7,Phase 1 Broadway 3/12/2007 1,271,499 1,811 131 Improvements) LFA 08-05-001(Broadway to FM 521) 5/5/2008 9,482,989 8 723,886 LFA 08-05-002(Broadway Landscape Northside) 5/5/2008 1 158,218 • 222,515 LFA 10-06-001(Discovery Bay Bctension to SH288) 6/7/2010 912,908 697,765 LFA 10-06-002(SCH-4 Site) 6/7/2010 2,530,620 2 784,626 LFA 10-06-003(SCH-5 Site) 6/7/2010 4,935,370 5,417 807 LFA 13-06-001(SCH-3 Site) 6/24/2013 2,382,379 2,222,811 LFA 06-10-001(Road Infrastructure,Pipeline 10/23/06 9,949,618 14,250,603 Relocation and Site Drainage,Part of 2nd Plan Amendment) LFA 07-03-002(Shadow Creek Ranch Town Center 03/12/07 1,851 598 2,566,834 Improvements Part of 2nd Plan Amendment) LFA 08-01-001(Broadway Improvements) 1/15/2008 8,449,086 1,627,881 City of Pearland LFA 12-06-001(Village 7,Phase 1) 6/11/2012 10,571,086 LFA 13-06-002(Southlake Phase 2) 6/24/2013 9 102,286 LFA 14-06-001(Southlake Phase 3) 6/24/2013 3,548,252 LFA 14-06-002(South Grove Phase 1) 6/23/2014 7,448,692 LFA 16-08-001(Road to serve Reserve at Shadow Cree 8/8/2016 2,075,106 LFA 17 10-001(CR59 Improvements) 10/23/2017 1,091 520 LFA 19-10-001(City of Pearland Fire Station#8) 10/28/2019 13,825,472 LFA 19-10-002(Shadow Creek Ranch Library) 10/28/2019 24,050,284 LFA 19-10-003(Nature Trail Connection) 10/28/2020 790,910 LFA 19-10-004(FM 521 Improvements) 10/28/2020 2,479,000 LFA 20-09-001(Shadow Creek Park Phase II) 9/23/2020 10,179,283 LFA 21 02-001(Shadow Creek Sidewalk Extensions) 2/4/2021 1,216,141 Future LFA(Shadow Creek Trail Phase II) Future LFA(Shadow Creek Lighting&Landscaping) Future LFA(Intersection Improvements) $ 260,072,377 $ 214,692,470 (1) LFA amounts have been adjusted for inflation per the Project and Financing Plan and related budget. (2) Amounts reimbursed include actual interest per the Developer Reimbursement Agreement. 13 •Actual costs exceeded the amount of the LFA Per the governing agreements,reimbursement is limited to the amount of the LFA 4. The information provided in this section is in accordance with §311.016 (a) (4) of the Texas Tax Code, which requires inclusion of the tax increment base and current captured appraised value retained by the zone. In each year subsequent to the base year, the Zone will receive tax increment revenue based on ad valorem property taxes levied and collected by each participating taxing unit on the captured appraised value of the Zone The captured appraised value of the Zone is the total appraised value of all real property located within the Zone as of January 1, less the total appraised base year (January 1, 1998) value As of December 31, 2020, the captured value of the Zone as amended had exceeded the original Project Plan projections of value at the end of the Zone However, because the pace of development is unpredictable the actual captured appraised value in any future year may not equal the projected estimates of such value. As of January 1, 1998, the base year for the Zone, the area encompassed by the original Zone was undeveloped land, with a total appraised value of$7,172,980 On January 1, 2020, the area encompassed by the original Zone had a total appraised value of$2,540,964,522. As a result,the total captured appraised value (net base year value and exemptions) on the tax roll as of January 1, 2020, was $2,533,791,542 for the City, as illustrated in Table B The City of Pearland base year (2006) value for the 457+ acres annexed in the 1st Plan Amendment was $4,381,680. As of January 1, 2020, the total appraised value was $362,112,719 As a result,the total captured appraised value on the roll as of January 1, 2020,was$357,731,039 The 2"d 4ch and 5th Plan Amendments did not add any land to the boundaries of the original Zone. All lands associated with the 3rd Plan Amendment are either owned by a municipality or are dedicated right-of-way with no taxable value 5. The information provided in this section is in accordance with §311 016 (a) (5) of the Texas Tax Code, which requires inclusion of the captured appraised value shared by the municipality and other taxing units, the total amount of tax increments received, and any additional information necessary to demonstrate compliance with the tax increment financing plan adopted by the governing body of the municipality. As previously stated,the City, Brazoria County, Fort Bend County and Alvin ISD are the only taxing units currently participating in the Zone As of January 1, 2020, the total captured appraised value in the TIRZ was $2,891,522,581 for the original and annexed areas of the Zone The total amount of tax increment revenue received is detailed in Table C. (This report was written in accordance with the provisions of Chapter 311 016 of the Texas Tax Code) 14 REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS 2020 ANNUAL REPORT EXHIBITS 15 Exhibit 1: Zone Boundary Map - ,* ' I y 'iris Courity- I' ' A +�'� ,,Ha I. :1 Coy Clear Creek11112 4� . '..., for \ �/y 4 Brazoria County_` -. . i ' --rif yes 1' i ti.fir. . PT r r 1. 1 - / • '. I e --• - ; �, or/ NI! ' ,.'''-'. ' -..i. : 'tit'/- : , 44- . , .:-: 4 ill, s _,_._ -- 7. r'''. 9- ' ,,,::. ; '') 1, :___, •-•. •:.::. ,, .4,-- .• - 't1, ,. • .. a, .,,,k):A._....._ Y . '.\1.- Tr'' ' ''t v...1.4• saw a%►. ' ' �ity:.,o#-Pearland ' _ - - = ' 1 r► nTl R4-- �Z N s 4z- Shadow Creek•R.— .• it. ':. 2 `. - •8ii,,.. l', Cf,i*a4rta)r„. ,,,,,4,,"1$:,...:.-.,,-,,.,./. - ! . , r, : t. 1: (illit ' . :3 ( . 1 AI 'tom;" 1f. f ' i 4"-. ai . ...,„, L ,.,,, --, , , �./, . , , Road192 l� I ' '':Prv�w J county • S. . • _ — --ilk . : _ . 3rd Amendment P �• r Annexation �/ • t' / 1st Amendment ' i, _ Annexation itr 2ND AMENDMENT • ' • �!T� PEARLAND RETAIL DEVELOPMENT • ^" PARTNERS SITE t ,� t (SHADOW CREEK RANCH TOWN CENTER) I Ifki /'. fir` ; d r- ` • TIRZ Boundary , r '!t ,t., ..ti County Line r :. --�a it*. 4� J I� ?r 4. _- I n 3rd Amendment Annexation r.. �1 .. .. . .. 01.J. -C1.r', 16 Exhibit 2: Amended Zone Boundary Map rapt#•r # i� ora f Ilf.;_,M___ A* ' _ . - - 4 44i‘ , ' --,, .. 641 ... ., R TI — ORIGINAL BOUNDARY r a`• !y Al j "fit + / t.y — . . .. a-r.r, a. - T' . . . . .., . .___. . , • a 13,.,,., : , swm: r '« . 4` Ii 1ST AMENDMENT '-_ . .. . t ANNEXATION _ PEARLAND RETAIL DEVELOPMENT yt PARTNERS SITE ;i --- x i , _ . . ,l i a 17 Exhibit 3: Development Status— 1999 vs 2019 r ', � t1999 _.— - - Rta ���----i,, , :-,:L.:.-..-.: _ 1 0a19' _— i Shad'o4�Cree•k -� _ ` ` +r /��''�///��� I4 .. io • _ 1 - • rya E �__ w�A, f �'�"J'•"�'. too + �.•• -�. .• I v :)+. ,t l*. _ .� f '��-. '- , �.` 'cry . 41 .,,,.., ..,..,....,„.,.. .... I (. ti1 1 vi} ♦3' �• .4 t' ' t,�4 �_I.c ! �� V ..- • if _�•yi. ;._,. .,�,t" r<' 'emsIL. /"� _- `� _ ,, . ,?'. ,.s7 yL , -no .: t• ;:-\ '-1:1 1 (- .t ' ' - •' - 1,s, '-'.; .-' 1-,-^-- '' '.- /4 , -,'' joi r ,, • ,A . ii,.... :,,. . -,.•......b....f:-.),- *I;-rf CI. t7a8" ! 1 , 18 Marsh Darcy Partners, Inc 8955 Katy Freeway, Suite 215 Houston, Texas 77024