R99-056 08-16-99RESOLUTION NO. R99-56
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO
ENTER INTO AN INTERLOCAL AGREEMENT WITH BRAZORIA COUNTY
TO COOPERATE IN ESTABLISHING CONDITIONS FOR PARTICIPATION
IN TAX INCREMENT REINVESTMENT ZONE NO. 2 WITHIN THE
CORPORATE CITY LIMITS OF PEARLAND.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
S ection 1. That certain interlocal agreement by and between the City of
Pearland and Brazoria County, a copy of which is attached hereto as Exhibit "A"• and
made a part hereof for all purposes, is hereby authorized and approved.
S ection 2. That the City Manager or his designee is hereby authorized to
execute and the City Secretary to attest the original of the attached agreement for and
o n behalf of the City of Pearland, to cooperate with the aforementioned entity in
e stablishing conditions for participation in Tax Increment Reinvestment Zone No. 2
within the corporate city limits of Pearland.
PASSED, APPROVED and ADOPTED this the (L) day of
309*
, A. D., 1999.
ATTEST:
•UNi i•'. I►
ITY •'CRETAN'
APPROVED AS TO FORM:
DARRIN M COKER
CITY ATTORNEY
TOM REID
MAYOR
THE STATE OF TEXAS
COUNTIES OF FORT BEND
BRAZORIA AND HARRIS
TAX INCREMENT PARTICIPATION AGREEMENT
I. PARTIES
A. Address
THIS TAX INCREMENT PARTICIPATION AGREEMENT ("Agreement") is made by and
between the CITY OF PEARLAND, TEXAS ("City"), a municipal corporation and home rule city of the
State of Texas principally situated in the Counties of Fort Bend, Brazoria, and Harris, acting by and
through its governing body, the City Council; BRAZORIA COUNTY ("County"), located at The Brazoria
County Court House, 111 Locust, Angleton, Texas 77515 and the REINVESTMENT ZONE NUMBER
TWO, CITY OF PEARLAND, TEXAS (the "Reinvestment Zone"), a reinvestment zone created by the
City of Pearland pursuant to Chapter 311 of the Texas Tax Code, acting by and through its Board of
Directors. This Agreement is made pursuant to Chapter 791 of the Texas Government Code and
Section 311.013 of the Texas Tax Code.
The initial addresses of the parties, which one party may change by giving written notice of its
changed address to the other parties, are as follows:
City
County
The
Reinvestment
Zone
City
or
City
3519
Pearland,
Designee
Manager
of
Liberty
Pearland,
Texas
Drive
77581
Texas
111
Brazoria
Attention
Brazoria
Angleton,
Locust
County
County
County
Texas
Judge
Court
77515
House
The
Reinvestment
Zone
Attention
c/o
3519
City
Liberty
of
President
Pearland,
Drive
Texas
Pearland,
Texas
77581
B Index
The City, the County and the Reinvestment Zone hereby agree to the terms and conditions of
this Agreement. This Agreement consists of the following sections:
Section
Description
Page
I.
Parties
1
II.
Definitions
5
Ill.
Background
6
IV.
Obligations
of
the
County
6
V.
Obligations
of City
and
the
Reinvestment
Zone
8
VI.
Term
and
9
Termination
VII.
Miscellaneous
9
Exhibit "A" — City of Pearland Ordinance No. 891
C. Parts Incorporated
All of the above described sections and documents are hereby incorporated into this Agreement
by this reference for all purposes.
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IN WITNESS HEREOF, the City, the County and the Reinvestment Zone have made and
executed this Agreement in multiple copies, each of which is an original.
CITY OF PEARLAND, TEXAS, BRAZORIA COUNTY
a home rule municipality
City Mayor Date County Judge Date
ATTEST:
City Secretary
(SEAL)
COUNTERSIGNED:
Date
City Manager Date
APPROVED AS TO FORM:
City Attorney Date
Commissioner Date
Commissioner Date
Commissioner Date
Commissioner Date
APPROVED AS TO FORM:
Attorney Date
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REINVESTMENT ZONE NUMBER TWO,
CITY OF PEARLAND, TEXAS
By: Date
Title: Chairman, Board of Directors
ATTEST/SEAL:
By: Date
Title: Secretary, Board of Directors
[The remainder of this page is intentionally left blank.]
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II. DEFINITIONS
As used in this Agreement, the following terms shall have the meanings set out below:
"Administrative Costs" means the costs of organizing the Reinvestment Zone, the costs of
operating the Reinvestment Zone and the imputed administrative costs associated with the
Reinvestment Zone incurred by the City in connection with the implementation of the project plan.
"Agreement" means this agreement between the City, the County and the Reinvestment Zone.
"Agreement Term" is defined in Section VI.
"Captured Appraised Value" for a given tax year means the total appraised value of the real
property in the Reinvestment Zone Tess the Tax Increment Base.
"City" is defined in Section I of this Agreement and includes its successors and assigns.
"Consumer Price Index" means the Consumer Price Index for All Urban Consumers (CPI-U)
U. S. City Average, Dallas -Fort Worth, and Houston-Galveston-Brazoria (1982-1984 = 100) as
published by the U. S. Department of Labor, Bureau of Labor Statistics.
"Countersignature Date" means that date shown as the date countersigned by the City Manager
on the signature page of this Agreement.
"The County" is defined in Section I of this Agreement and includes its successors and assigns.
"County Actual Cost of Service" is the total annual amount Brazoria County has budgeted in a
given fiscal year for the Governmental Services and Operations listed in Exhibit B to this Agreement,
divided by the total number of dwelling units in Brazoria County certified to the County by the Brazoria
County Appraisal District.
•
"County Unit Cost of Service" means initially the sum of $218 which sum shall be increased by
the percentage increase in the CPI from the Base Month (January, 2000) to the respective Comparison
Month (January) as determined by the following formula
(Comparison Month CPI divided by Base Month CPI times $218.)
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If the Bureau of Labor Statistics discontinues publication of the CPI, the City and County agree
to adopt a substitute index or procedure based on data published by the U. S. Department of Labor or
by a public or private university which is intended to reflect any changes in consumer prices.
"The County Tax Increment Participation" means the amount of the County tax levy on the
Captured Appraised Value which the County agrees to contribute to the Reinvestment Zone pursuant
to Subsections A and B of Section IV of this Agreement.
"Project Plan" means the project plan and reinvestment zone financing plan for the
Reinvestment Zone adopted by the board of directors of the Reinvestment Zone and approved by the
City Council of the City.
"Reinvestment Zone" means Reinvestment Zone Number Two, City of Pearland, Texas created
by the City on December 21, 1998, by Ordinance No. 891, attached as Exhibit "Al" and includes its
successors and assigns.
"Tax Increment Base" means the market value of all real property located in the Reinvestment
Zone for the 1998 tax year, as determined by the Brazoria County Central Appraisal District (excluding
exemptions).
"Tax Increment Fund" means the tax increment fund created by the City in the City Treasury
for the Reinvestment Zone.
Otherwise, the terms used herein shall have the meanings ascribed to them in Chapter 311,
Texas Tax Code, as applicable.
III BACKGROUND
By Ordinance No. 891, adopted December 21, 1998, the City created the Reinvestment Zone
for the purposes of development and redevelopment in the area of the Reinvestment Zone. The City
will deposit tax increments produced in the Reinvestment Zone in the Tax Increment Fund. The County
desires to participate in the Reinvestment Zone in consideration for the agreements set forth below.
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IV. OBLIGATIONS OF THE COUNTY
A. Tax Increment Participation by the County
For and in consideration of the agreement of the parties set forth herein, and subject to the
remaining subsections of this section, the County agrees to participate in the Reinvestment Zone by
contributing the amount of tax increment produced in the Reinvestment Zone attributable to the County
collected by the County in each of the tax years at the tax rate described in Table IV -A below.
Tax Year
1999 - 2028
Table IV -A
County Tax Rate Per
One Hundred Dollars Percentage of
of Assessed Value Total County Tax
Rate
$0.1359 38%
In the event the County tax rate is Tess than the tax rate for the indicated tax year listed above,
then the County Tax Increment Participation is the percentage of the total amount of taxes collected by
the County at the actual tax rate of the County on the Captured Appraised Value. In a tax year in which
the tax rate is greaterthan the County Tax Rate set forth in Table IV -A ("County Tax Rate"), the County
Tax Increment Participation shall be limited to the amount of tax produced at the County Tax Rate, and
the County shall retain that portion of the taxes attributable to the County in excess of the actual tax rate
levied by the County over the applicable County Tax Rate.
The County's Tax Increment Participation and obligation to participate in the Reinvestment Zone
shall be restricted to its tax increment collected on the Captured Appraised Value in the Reinvestment
Zone in the amounts shown above. The County shall not be obligated to pay its County Tax Increment
Participation from other County taxes or revenues or until the County Tax Increment Participation in the
Reinvestment Zone is actually collected. The obligation to pay the County Tax Increment Participation
shall accrue as taxes representing the County tax increment are collected and payment shall be due
on August 1 of each year.
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B. Expansion of the Investment Zone
The obligation of the County to participate in the Reinvestment Zone is limited to the area
described in Exhibit "A" attached hereto. The County's participation shall not extend to the tax
increment on any additional property added to the Reinvestment Zone by the City unless the County
approves the participation.
C. Board of Directors
As a participating taxing unit, the County shall have the right to appoint one (1) member on the
Reinvestment Zone Board of Directors. Failure of the County to appoint a person to the Board of
Directors of the Reinvestment Zone by September 30, 1999, shall be deemed a waiver of the County's
right to make an appointment by a later date.
V. OBLIGATIONS OF CITY AND THE REINVESTMENT ZONE
A. Copy of the Project Plan
A copy of the Reinvestment Zone Project Plan and any amendments thereto shall be provided
to the County before any such plan is finally approved by the Reinvestment Zone. Any amendment to
the Project Plan shall be submitted to the County for review prior to adoption.
B Operation of Libraries
The City and the Reinvestment Zone agree that a County -operated public library will not be
constructed in the Reinvestment Zone, unless the County consents to the construction of such library.
C. Disannexation
Once Reinvestment Zone bonds have been sold, the City agrees that it will never disannex any
property within the Reinvestment Zone.
D. Responsibility for Reinvestment Zone Debt
The City and the Reinvestment Zone agree that the County is not liable for the debt of the
Reinvestment Zone, or any debt issued by the City or related instrumentality thereof secured by
revenues of the tax increment fund, or other revenues available to pledge to such bonds.
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E. Development in Accordance with the Planned Unit Development
The City agrees that all development within the Reinvestment Zone will be in accordance with the
Planned Unit Development. The City will enforce the requirements of the Planned Unit Development on
all development within the Reinvestment Zone.
F. Audit
The Reinvestment Zone and the City agree that the County has the right to conduct a reasonable
audit of the records, including the financial records of the Reinvestment Zone and access to such records
shall not be unreasonably withheld or delayed. The Reinvestment Zone and the City agree to provide the
annual financial audit of the Reinvestment Zone within 90 days of the completion of such audit.
G. Expenses
The City agrees to pay solely from the tax increment fund the direct expenses of the County
incurred for financial, legal and planning consultants in determining its participation in the Reinvestment
Zone, and in connection with the review of the Project Plan and the negotiation of this Agreement.
H. Developer Interest
The City agrees that the Project Plan will include a provision that limits the amount of
reimbursement to the Developer (for the full amount of eligible Master Improvements, plus amounts
required to reimburse the Developer for funds advanced in connection with the creation and
administration of the Reinvestment Zone and the conception, design and construction of the TIRZ
Improvements), that is reimbursable at simple interest calculated at eight percent per annum, until paid,
for a maximum period of five years from the completion of the applicable TIRZ Improvements, to $20
million for the eligible Master Improvements. and $1 million for the creation and administration of the
Reinvestment Zone.
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VI. TERM AND TERMINATION
A. Agreement Term
This Agreement shall become effective as of the date of the final signature hereto, and shall
remain in effect until thirty (30) years later. The first payment of the County Tax Increment Participation
shall be for those taxes levied by the County in the year 1999 and the last payment by the County under
this Agreement is for those taxes levied by the County in the year 2028.
B Early Termination by City
The City shall not adopt an ordinance terminating the Reinvestment Zone earlier than the duration
of the Zone established in Ordinance No. 891, without the prior consent of the County, provided that the
Reinvestment Zone may otherwise terminate by operation of law.
C. Early Termination or Modification by the County
(a) Subject to (c) below, the County may reduce its participation in the Zone under this Agreement
for the remaining term of the Zone, by the adoption of a written order of the Commissioner's Court
adopted prior to September 30 of such year if the Captured Appraised Value is less than 50% of the
values for each of the listed tax years indicated in Table VI-C, or
(b) Subject to (c) below, that in such listed tax years, if the County Unit Cost of Service is lower
than the County's Actual Cost of Service, the County may reduce its participation in the Zone under this
Agreement for the remaining term of the Zone so that the County's retained tax increment covers the
County's Actual Cost of Service for dwelling units in the Zone by at least 1.32 times, but the reduction
percentage may not increase the County's retained tax increment revenue to cover more than County
Unit Cost of Service plus ten percent.
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Tax
Year
2006
2011
2016
2021
2026
Table VI-C
Captured
Appraised Value
$ 655,340,658
$ 1,338,693,425
$ 1,414,004,025
$ 1,414,004,025
$ 1,414,004,025
(c) Provided, however, that if the City, the Zone or an agency or instrumentality of the City
o r Zone have (1) issued bonds or notes (the "Bonds") secured by revenues in the tax increment fund
o r under a contract secured by payments of the tax increment revenues, or (2) entered into a project
cost agreement(s) for the implementation of the Zone Project Plan pledging the payment of the tax
increment for the payment of developer advances then incurred or construction contracts awarded and
executed, the County may not reduce its participation under the provisions of subparagraphs (a) or (b)
of this Section to an amount less than its cumulative annual pro rata share of the tax increment pledged
to make payments on all of such Bonds or agreements. For the purpose of identifying the County's pro
rata obligations under this Section, at the time of each issuance of Bonds or the execution of each
agreement, the City shall provide to the County a schedule showing the County's pro rata share of all
payments to be made for such Bonds or under such agreements that are secured by the County's tax
increment under this Agreement.
The City may not issue bonds or notes, the payment of principal, interest or premium of which
are secured by the tax increment attributable to the County tax increment paid under this Agreement
u nless the City's financial advisor shall certify in writing to the City Council that the total annual tax
increment revenues, less TIRZ administrative fees, is equal to or greater than 125% of the total annual
amount to all outstanding and proposed TIRZ bond or note payments and contractual obligations.
In the event that no additional taxable improvements are constructed in the Zone by January 1,
2006, the County may terminate this Agreement.
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D. Disposition of Tax Increments
Upon termination of the Reinvestment Zone, if all public improvements in the Project Plan have
been constructed and financed and if all Reinvestment Zone debt is paid in full, the City and the
Reinvestment Zone shall pay to the County all monies remaining in the Tax Increment Fund that are
attributable to the County Tax Increment Participation.
VI1. MISCELLANEOUS
A. Severability
In the event any term, covenant or condition herein contained shall be held to be invalid by any
court of competent jurisdiction, such invalidity shall not affect any other term, covenant or condition
herein contained, provided that such invalidity does not materially prejudice either the County, the City
o r the Reinvestment Zone in their respective rights and obligations contained in the valid terms,
covenants or conditions hereof.
In the event any term, covenant or condition shall be held invalid and affects in any manner the
limitations on the County's contributions or participation, then this Agreement shall be void as to the
County and the County shall have no liability for any incremental or other payments as may otherwise
be provided for in this Agreement.
B Entire Agreement
This Agreement merges the prior negotiations and understandings of the parties hereto and
e mbodies the entire agreement of the parties, and there are no other agreements, assurances,
conditions, covenants (express or implied) or other terms with respect to the covenants, whether written
o r verbal, antecedent or contemporaneous, with the execution hereof.
C. Written Amendment
Unless otherwise provided herein, this Agreement may be amended only by written instrument
duly executed on behalf of each party.
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D. Notices
All notices required or permitted hereunder shall be in writing and shall be deemed delivered
when actually received or, if earlier, on the third (3rd) day following deposit in a United States Postal
Service post office or receptacle with proper postage affixed (certified mail, return receipt requested)
addressed to the respective other party at the address prescribed in Section I of this Agreement or at
such other address as the receiving party may have theretofore prescribed by notice to the sending
party.
E. Non -Waiver
Failure of any party hereto to insist on the strict performance of any of the agreements herein
o r to exercise any rights or remedies accruing hereunder upon default or failure of performance shall
n ot be considered a waiver of the right to insist on, and to enforce by any appropriate remedy, strict
compliance with any other obligation hereunder or to exercise any right or remedy occurring as a result
of any future default or failure of performance.
F. Assignment
N o party shall assign this Agreement at law or otherwise without the prior written consent of the
other parties.
N o party shall delegate any portion of its performance under this Agreement without the written
consent of the other parties.
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G. Successors
This Agreement shall bind and benefit the parties and their legal successors. This Agreement
does not create any personal liability on the part of any officer or agent of the City or of any trustee,
officer, agent or employee of the County.
H. No Waiver of Immunity
No party hereto waives or relinquishes any immunity or defense on behalf of itself, its trustees,
officers, employees, and agents as a result of its execution of this Agreement and performance of the
covenants contained herein.
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EXHIBIT A
City of Pearland, Texas, Ordinance No. 891
AN ORDINANCE DESIGNATING A CONTIGUOUS GEOGRAPHIC AREA
WITHIN THE CITY OF PEARLAND AS REINVESTMENT ZONE NUMBER
TWO, CITY OF PEARLAND, TEXAS; CREATING A BOARD OF
DIRECTORS FOR SUCH ZONE; MAKING VARIOUS FINDINGS AND
PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING A
SEVERABILITY CLAUSE.
WHEREAS, the City Council has received petitions (the "Petitions"), requesting that a
contiguous geographic area in the City of Pearland (the "City"), be designated as a reinvestment zone
under the provisions of Chapter 311 of the Texas Tax Code; and
WHEREAS, the Petitions were submitted by the owners of property constituting at least fifty
percent of the appraised value of the property in the proposed reinvestment zone according to the
most recent certified appraisal rolls for Brazoria and Fort Bend Counties, Texas, the counties in
which the proposed zone is located; and
WHEREAS, the City has prepared a preliminary reinvestment zone financing plan and has
presented the plan to the governinb c'ody of each taxing unit that levies taxes on real property in the
proposed reinvestment zone; provided wntten notice of its intent to establish the reinvestment zone
on September 30, 1998, and made a formal presentation to representatives of Brazoria County, Fort
Bend County, Alvm Community College, Brazoria Drainage District No. 4, Pearland Independent
School Distnct, Alvm Independent School District and Fort Bend Independent School District
pursuant to Section 311.003 of the Texas Tax Code; and
WHEREAS, the preliminary reinvestment zone financing plan provides that the City's ad
valorem taxes are to be deposited into the tax increment fund, and that taxes of other taxing units
may be utilized in the financing of the proposed zone; and
•
VEHOU09:73035.1
WHEREAS, following notice thereof, published on December 13, 1998, in the Houston
Chronicle, a newspaper of general circulation in the City, a hearing was held on the creation of the
proposed zone on December 21, 1998, such hearing being more than 60 days following notice to the
taxing units described above; and
WHEREAS, at the public hearing, all interested persons were allowed to speak for or against
the creation of the proposed zone, its boundaries, or the concept of tax increment financing and
evidence was received and presented at the public hearing in favor of the creation of the proposed
zone under the provisions of Chapter 311, Texas Tax Code;
WHEREAS, no owner of real property in the proposed zone protested the inclusion of his
property in the proposed zone; and
WHEREAS, in its consideration of the creation of the proposed reinvestment zone, the City
Council anticipates the participation of the various other taxing units at levels sufficient to carry out
the proposed projects, and if the actual level of participation by the other taxing units is insufficient
in the determination of the City Council, the proposed reinvestment zone may be terminated by the
City pursuant and subject to the applicable provisions of Chapter 311 of the Texas Tax Code; and
WHEREAS, the City will not incur financial obligation solely as a result of the approval of
the creation of the reinvestment zone, with any such financial obligations to be incurred only upon
further approval by City Council,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF PEARLAND, TEXAS:
Section 1. Findings.
(a) That the facts and recitations contained in the preamble of this Ordinance are hereby
found and declared to be true and correct and are adopted as part of this Ordinance for all purposes.
VEH0009:73035.1
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(b) That the City Council further finds and declares that the proposed improvements in
the zone will significantly enhance the value of all the taxable real property in the proposed zone and
will be of general benefit to the City.
(c) That the City Council further finds and declares that the proposed reinvestment zone
meets the criteria of Section 311.005 of the Texas Tax Code because the proposed zone is an area
designated in a petition submitted by the owners of property constituting at least 50 percent of the
appraised value of the property in the area requesting that the area be designated as a reinvestment
zone.
(d) That the City Council, pursuant to the requirements of Chapter 311, Texas Tax Code,
further finds and declares•
(1) That the proposed zone is a contiguous geographic area located wholly within the
corporate limits of the City of Pearland;
(2) That the total appraised value of taxable real property in the proposed zone, and in
existing reinvestment zones, if any, does not exceed fifteen percent of the total
appraised value of taxable real property in the City and in industrial districts created
by the City;
(3) That the proposed zone does not contain more than fifteen percent of the total
appraised value of real property taxable by Brazoria County, Fort Bend County,
Alvin Independent School District, or Fort Bend Independent School District;
(4) That development or redevelopment within the boundaries of the proposed zone will
not occur solely through private investment in the reasonably foreseeable future
Section 2. Designation of the Zone
That the City, acting under the provisions of Chapter 311, Texas Tax Code (the "Act"),
including Section 311.005(a)(5), does hereby create and designate a reinvestment zone over the area
VEH0009:73035.1
described in Exhibit "A" and depicted in the map attached hereto as Exhibit "B." The reinvestment
zone shall hereafter be identified as Reinvestment Zone Number Two, City of Pearland, Texas (the
"Zone"). The City Council specifically declares that the Zone is designated pursuant to Section
311.005(a)(5) of the Texas Tax Code.
Section 3. j3oard of Directors
That there is hereby created a Board of Directors for the Zone, which shall consist of nine
(9) members. Position One on the Board of Directors shall be filled by the State Senator
representing the area included within the Zone or his or her designee. Position Two on the Board
shall be filled by the State Representative representing the area included within the Zone or his or
her designee. The Mayor is hereby authorized to nominate and appoint the remaining seven (7)
members of the Board to Positions Three through Nine, subject to the consent and approval of the
City Council; provided, however, that (i) Brazoria County shall be entitled to appoint a director to
Position Nine if Brazoria County approves the payment of all or part of the tax increment attributable
to Brazoria County, (ii) Fort Bend County shall be entitled to appoint a director to Position Eight if
Fort Bend County approves the payment of all or part of the tax increment attributable to Fort Bend
County, (iii) the Alvin Independent School District ("Alvin ISD") shall be entitled to appoint a
director to Position Seven if Alvin ISD approves the payment of all or part of the tax increment
attributable to Alvin ISD, and (iv) the Fort Bend Independent School District ("Fort Bend ISD") shall
be entitled to appoint a director to Position Six if Fort Bend ISD approves the payment of all or part
of the tax increment attributable to Fort Bend ISD. Failure of Brazoria County, Fort Bend County,
Alvin ISD, or Fort Bend ISD to appoint a director by March 1, 1999, shall be deemed a waiver of
that taxing unit's right to appoint a director, and the Mayor shall be entitled to nominate and appoint
persons to such positions, subject to the consent and approval of City Council.
VEH0009:73035.1
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The directors or their designees in Position One and Position Two shall be members of the
board by operation of law pursuant to Section 311.009(b), Texas Tax Code. The initial directors
appointed to Positions Three, Four and Five shall be appointed for two-year terms, beginning
January 1, 1999, while the directors appointed to Positions Six, Seven, Eight and Nine shall be
appointed to one-year terms, beginning January 1, 1999. All subsequent appointments shall be for
two-year terms. The member of the Board of Directors appointed to Position Three is hereby
designated to serve as the chair of the Board of Directors for a term beginning January 1, 1999, and
ending December 31, 1999. Thereafter, the Mayor shall annually nominate and appoint, subject to
City Council approval, a member to serve as chair for a term of one year beginning January 1 of the
following year. The City Council authorizes the Board of Directors to elect from its members a vice
chairman and such other officers as the Board of Directors sees fit.
The Board of Directors shall prepare or cause to be prepared and adopt a project plan and a
reinvestment zone financing plan for the Zone as described in Section 311.011, Texas Tax Code, and
shall submit such plans to the City Council for its approval. The City hereby delegates to the Board
of Directorsall powers necessary to administer, manage and operate the Zone and prepare and
implement the project plan and reinvestment zone financing plan, subject to approval by the City
Council, including the power to employ any consultants or enter into any reimbursement agreements
payable solely from the Tax Increment Fund established pursuant to Section 6 of this Ordinance
subject to the approval of the City Manager, that may be reasonably necessary to assist the Board of
Directors in the preparation of the project plan and reinvestment zone financing plan and in the
issuance of tax increment obligations.
Section 4. Duration of the Zone
That the Zone shall take effect on January 1, 1999, and termination of the operation of the
Zone shall occur on December 31, 2028, or at an earlier time designated by subsequent ordinance,
VEH0009:73035.1
or at such time, subsequent to the issuance of tax increment bonds, if any, that all project costs, tax
increment bonds, and the interest on the bonds, have been paid in full.
Section 5. Tax Increment Base
That the Tax Increment Base for the Zone is the total appraised value of all real property
taxable by the City and located in the Zone, determined as of January 1, 1998, the year in which the
Zone was effective and designated as a reinvestment zone (the "Tax Increment Base").
Section 6. Tax Increment Fund
That there is hereby created and established a Tax Increment Fund for the Zone which may
be divided into subaccounts as authorized by subsequent ordinances. All Tax Increments, as defined
below, shall be deposited in the Tax Increment Fund. The Tax Increment Fund and any subaccounts
shall be maintained at the depository bank of the City and shall be secured in the manner prescribed
by law for Texas cities. The annual Tax Increment shall equal the amount by which the then -current
appraised value of all taxable real property located in the Zone exceeds the Tax Increment Base of
the Zone. less any amounts that are to be allocated from the Tax Increment pursuant to the Act. All
revenues from the sale of any tax increment bonds or other notes hereafter issued by the City, if any,
revenues from the sale of property acquired as part of the tax increment financing plan, if any, and
other revenues to be used in the Zone shall be deposited into the Tax Increment Fund. Money shall
be disbursed from the Tax Increment Fund only to pay project costs for the Zone, as defined by the
Texas Tax Code, to satisfy the claims of holders of tax increment bonds or notes issued for the Zone
or pursuant to any agreement the Board of Directors considers necessary or convenient to implement
the Zone's project plan and reinvestment zone financing plan and achieve their purposes.
Section 7. Severability
If any provision, Section, subsection, sentence, clause or phrase of this Ordinance, or the
application of same to any person or set of circumstances, is for any reason held to be
VEHOU09:73035.1
-6-
unconstitutional, void or invalid, the validity of the remaining provisions of this Ordinance or their
application to other persons or set of circumstances shall not be affected thereby, it being the intent
of the City Council in adopting this Ordinance that no portion hereof or regulations contained herein
shall become inoperative or fail by reason of any unconstitutionality voidness or invalidity of any
portion hereof, and all provisions of this Ordinance are declared severable for that purpose.
Section 8. Open Meetings
It is hereby found, determined and declared that a sufficient written notice of the date, hour,
place and subject of the meeting of the City Council at which this Ordinance was adopted was posted
at place convenient and rapidly accessible at all times to the general public at the City Hall of the
City for the Time required by law preceding this meeting, as required by the Open Meetings Law,
Texas Gov't Code Ann., ch. 551, and that this meeting has been open to the public as required by law
at all times during which this Ordinance and the subject matter hereof has been discussed, considered
and formally acted upon. The City Council further ratifies, approves and confirms such written
notice and the contents and posting thereof.
Section 9. Notices
The contents of the notice of the public hearing, which hearing was held before the City
Council on December 21, 1998, and the publication of said notice, is hereby ratified, approved and
confirmed.
VEH0009:73035. I
-7-
PASSED AND APPROVED on First Reading this the figfiday of December, 1998.
Tom Reid
Mayor
ATTEST:
PASSED, APPROVED AND ADOPTED on Second and Final Readithef day of
December, 1998.
ATTEST:
i�• gL•' g
ty Secretary
APPROVED AS TO FORM:
Damn M. Coker
City Attorney
VEH0009:73035.1
Tom Reid
Mayor
November 3, 1998
Job No. 1545-9803-100
DESCRIPTION OF
3467 ACRES MORE OR LESS
SHADOW CREEK RANCH
TAX INCREMENT REINVESTMENT ZONE
Being 3467 acres of land, more or Tess, located in the Dupuy and Roberts Survey. Abstract 726, Brazoria
County; William Moms Survey. Abstract 344, Brazoria County; T. C. R. R. Co. Survey, Section 3. Abstract 678,
Brazoria County; T. C R .R Co. Survey, Section 4 (John W. Maxey), Abstract 675. Brazoria County; Obediah Pitts
Survey, Abstract 717, Brazoria County, H.T. & B. R. R. Co Survey, Section 80 (J.S. Talmage), Abstract 564, Brazoria
County; H. T. & B. R. R. Co Survey, Section 81, Abstract 300, Brazoria County; H. T. & B. R. R Co. Survey,
Section 82 (J. S. Talmage), Abstract 565, Brazoria County; H. T. & B. R R. Co Survey, Section 83, Abstract 305 in
Brazoria County and Abstract 761 in Fort Bend County S G Haynie Survey, Abstract 212 in Brazoria County and
Abstract 620 in Fort Bend County; Franklin Hooper Survey. Abstract 198, Fort Bend County; George W. McDonald
Survey, Abstract 577, Fort Bend County; I C. Stafford Survey, Abstract 668, Fort Bend County and the H. Levering
Survey, Abstract 279, Fort Bend County, Texas; said 3467 acres, more or less, being more particularly described as
follows:
BEGINNING at the common north corner of Lots 3 and 4. Block 10 of the ALLISON - RICHEY GULF
COAST HOME CO S PART OF SUBURBAN GARDENS, SEC. S 3 & 4 T.C.RR SURVEY AND SEC. 82. H. T.
& B. R R. CO. SURVEY & OBEDIAH PITTS SURVEY, a subdivision of record in Volume 2. Page 99 of the Plat
Records of Brazoria County, Texas (B.C.P.R.) also being on the common line of the aforementioned T.C.RR Co.
Survey, Section 4 and the Dupuyand Roberts Survey;
THENCE, SOUTHERLY, 782 feet, more or less, along the common line of said Lots 3 and 4, to a point for
corner on the southerly nght-of-way line of Farm to Market Road 2234. 160 feet wide*
THENCE, EASTERLY, 998 feet, more or less. along said southerly right-of-way line and its easterly
extension, to a point for corner on the west line of the J. Crawley Sane). Abstract 174. Brazoria County, Texas:
THENCE. SOUTHERLY, 3482 feet, more or less, along the west line of said J. Crawley Survey to a point for
corner on the centerline of Hughes Ranch Road. also being the southwest corner of said J. Crawley Survey.
THENCE, EASTERLY 421 feet, more or less. along the southerly line of said J. Crawley Survey and along
said centerline of Hughes Ranch Road, to a point for corner on the centerline of State Highway 288:
3467 Acres November 3, 1998
Job No. 1545-9803 100
THENCE. SOUTHERLY 5326 feet. more or less. along said centerline of State Highway 288 to a point for
corner on the southerly line of County Road 92, 40 foot wide. a dedicated road as shown on aforementioned
ALLISON-RICHEY GULF COAST HOME CO.'S PART OF SUBURBAN GARDENS:
THENCE, WESTERLY, 9448 feet, more or less, along the southerly line of said County Road 92, to a point
for corner on the west line of aforementioned H. T. & B. R R Co. Survey, Section 80 and the east line the H. T. &
B. R R. Co Survey, Section 84 (R B. Lyle), Abstract 538 in Brazoria County and Abstract 767 in Fort Bend County;
THENCE, NORTHERLY, 20 feet, more or less, along the common line of said H. T. & B. R R Co. Survey,
Section 80 and Section 84, to a point for corner, same being the common corner of said H. T. & B. R R Co Survey,
Section 80 and Section 84 and aforementioned H. T. & B. R. R. Co. Survey, Section 82 and Section 83;
THENCE, WESTERLY, 5280 feet, more or less, along the common line of said H. T. & B. R R Co Survey,
Section 83 and Section 84, to a point for corner on the east line of aforementioned Franklin Hooper Survey, same being
the common west corner of said H. T. & B. R R Co Survey, Section 83 and Section 84;
THENCE, SOUTHERLY 158 feet, more or less, along the common line of said H. T. & B. R. R Co Survey,
Section 84 and the Franklin Hooper Survey, to a point for corner, same being the southeast corner of said Franklin
Hooper Survey and the northeast corner of the A.B. Langerman Survey, Abstract 555, Fort Bend County, Texas;
THENCE, EASTERLY, 2636 feet, more or less, along the common line of said Franklin Hooper Survey and
said A.B. Langerman Survey, to a point for corner on the easterly right -of -watt' line of Farm to Market Road 521;
THENCE, NORTHEASTERLY 9667 feet, more or less, along said easterly right -of --way line, to a point for
corner on the centerline of Clear Creek
THENCE, NORTHEASTERLY 1327 feet, more or less. along the centerline of Clear Creek to a point for
corner on the aforementioned southerly right-of-way line of Farm to Market Road 2234;
THENCE, SOUTHEASTERLY 1519 feet, more or less, along said southerly right-of-way line to a point for
Page 2 of 3
3467 Acres
corner on the of Fort Bend and Brazona County line;
November 3. 1998
Job No. 1545-9803-100
THENCE, NORTHEASTERLY 577 feet, more or Tess, along said county line, to a point for corner at the
common corner of Brazona, Fort Bend and Harris Counties:
THENCE, NORTHEASTERLY, 2426 feet, more or less, along the of Brazoria and Harris County line, to a
point for corner in the aforemention centerline of Clear Creek;
THENCE, EASTERLY 8250 feet, more or less, along the centerline meanders of Clear Creek to a point for
corner on the northerly line of aforementioned Lot 3. Block 10 of said ALLISON-RICHEY GULF COAST HOME
CO'S PART OF SUBURBAN GARDENS, same being on the aforementioned common survey tine of the T. C. R. R.
Co. Survey, Section 4 and the Dupuy and Roberts Survey,
THENCE, EASTERLY, 453 feet, more or less, along said north line of Lot 3, Block 10 and said common
survey line to the POINT OF BEGINNING and containing 3467 acres. more or less.
LJA Engineering & Surveying, Inc.
Page 3 of 3
EXHIBIT B
Exhibit 1
Brazoria County Budget Line Items to be included in Cost of Service Calculation
Department
County Court at Law #1
County Court at Law #2
County Court at Law #3
District Courts
Judicial Miscellaneous
District Attorney
Constable - Precinct 2
Sheriffs Office
Detention Center
Juvenile Probation
JP Precinct #2, Place 1
JP Precinct #2, Place 2
County Clerk
District Clerk
EMS
Fire
Total
Prepared by Estrada HinoJosa: Page 1 of 1
1999 Budgeted Amount
249,672
259,457
257,965
596,395
1,138,831
11836, 822
42,031
•
8,092,359
1,533,007
202,343
290,389
1,297,985
962,000
6,000
4,478
16,769,734