Ord. 1275 07-10-06ORDINANCE NO. 1275
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, AMENDING THE PROJECT PLAN AND
REINVESTMENT ZONE FINANCING PLAN FOR REINVESTMENT
ZONE NUMBER TWO, CITY OF PEARLAND, TEXAS; AUTHORIZING
THE CITY SECRETARY TO DISTRIBUTE SUCH PLANS; AND
CONTAINING VARIOUS PROVISIONS RELATED TO THE
FOREGOING SUBJECT.
WHEREAS, the City of Pearland, Texas (the "City"), pursuant to the provisions of
Chapter 311, Texas Tax Code, created Reinvestment Zone Number Two, City of
Pearland, Texas (the "Zone"), for the purposes of redevelopment of the area of the City
within the Zone; and
WHEREAS, the City has entered into or intends to enter into an Interlocal
Agreement with the Alvin Community College District (the "College") to provide for the
College's participation in the Zone; and
WHEREAS, the Project Plan and Reinvestment Zone Financing Plan adopted in
connection with the creation of the Zone (the "Plans") should be amended to reflect the
participation of the College, and the Board of Directors of the Zone has approved
changes to the Plans; and
WHEREAS, a public hearing on the amendment to the Plans was held in
conformance with the provisions of Sections 311.011(e) and 311.003(c) and (d), Texas
Tax Code;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF PEARLAND, TEXAS THAT:
Section 1. 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.
Section 2. The Plans are hereby amended as provided in Exhibit A attached
hereto to accommodate the participation of the College. The Plans as amended (the
"Amended Plans") are hereby determined to be feasible and are approved. The
appropriate officials of the City are authorized to take all steps reasonably necessary to
implement the Amended Plans.
Section 3. The City Secretary is directed to provide copies of the Amended
Plans to each taxing unit currently participating in the Zone, including the College.
Reinvestment Zone 2.1275
ORDINANCE NO. 1275
Section 4. 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 be held to be unconstitutional, void or invalid, the validity of the remaining
provisions of this Ordinance shall not be affected thereby, it being the intent of the City
Council in adopting this Ordinance that no portion hereof or provision or regulation
contained herein shall become inoperative or fail by reason of any unconstitutionally,
voidness or invalidity of any other portion hereof, and all provisions of this Ordinance
are declared to be severable for that purpose.
Section 5. The City Council officially finds, determines, recites and declares
that a sufficient written notice of the date, hour, place and subject of this meeting of the
City Council was posted at a place convenient to the public at the City Hall for the time
required by law preceding this meeting, as required by the Open Meetings Law, TEX.
Gov'T CODE ANN., Ch. 551; and that this meeting was open to the public as required by
law at all times during which this Ordinance and the subject matter thereof was
discussed, considered and acted upon. The City Council further ratifies, approves and
confirms such written notice and the contents and posting thereof.
PASSED AND APPROVED ON FIRST READING this the 26th day of June, A. D., 2006.
CITY OF PEARLAND, TEXAS
ATTEST:
Tom Reid
Mayor
87869
2
ORDINANCE NO. 1275
PASSED AND APPROVED ON SECOND AND FINAL READING this the 10th day of
July, A. D., 2006.
APPROVED AS TO FORM:
Darrin M. Coker
City Attorney
CITY OF PEARLA , EXAS
Tomeid
Mayor
vY;i/
87869
3
EXHIBIT
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1
REINVESTMENT ZONE NUMBER TWO
CITY OF PEARLAND, TEXAS
2nd AMENDMENT TO PROJECT PLAN
AND REINVESTMENT ZONE
FINANCING PLAN
SHADOW
CREEK
RANCH
CITY COUNCIL
2006-2007 Council Members
Mayor Hon. Tom Reid
Mayor Pro-Tem Hon. Kevin Cole
Council Member Hon. Richard Tetens
Hon. Helen Beckman
Hon. Steve Saboe
Hon. Felicia Kyle
City Manager William Eisen
2"d Amendment to TIRZ 2 Project and Financing Plan 2
BOARD OF DIRECTORS
2005-2006 Board Members
Position 1
Position 2
Position 3
Position 4
Position 5
Position 6
Position 7
Position 8
Position 9
Donna Coleman
State Senator Designee
Gary Davis
State Representative Designee
Nigel Harrison, Chair
City of Pearland Designee
Gary Cook, Vice Chair
City of Pearland Designee
Ken Phillips
City of Pearland Designee
Jo Knight
City of Pearland / Alvin
Independent School District
Designee
Mike Pyburn
Alvin Independent School District
Designee
Ron Castillo
Fort Bend County Designee
Larry Loessin
Brazoria County Designee
2nd Amendment to TIRZ 2 Project and Financing Plan 3
2"d AMENDMENT TOTHE PROJECT PLAN AND
REINVESTMENT ZONE FINANCING PLAN FOR
REINVESTMENT ZONE NUMBER TWO,
CITY OF PEARLAND (SHADOW CREEK RANCH)
I. OVERVIEW
The City of Pearland (the "City") created Tax Increment Reinvestment Zone Number
Two (the "Zone" or "Shadow Creek Ranch") by City Ordinance No. 891, dated
December 21, 1998. The Project Plan and Reinvestment Zone Financing Plan (the
"Plan") was approved by the Board of Directors of the Zone and adopted by Council on
August 23, 1999. The Zone as originally designated contained 3,467 acres of vacant,
undeveloped land generally bounded by Clear Creek on the north, State Highway 288 on
the east, County Road 92 (the extension of FM 518 west of S.H. 288) on the south, and
FM 521 on the west.
The Plan describes the purpose of the Zone as financing regional public infrastructure
improvements necessary to develop the Zone as quality mixed -use development creating
a self-sustaining tax base. The chart below summarizes the total estimated Project Cost
for the Zone as approved in the Plan.
Eligible Project Description
Total Estimated Project Cost
Infrastructure & Zone
Administration/Creation
$109,633,923
City Facilities
$5,000,000
Educational Facilities
$134,100,000
Grand Total
$248,733,923
A Feasibility and Marketing Study performed by American Metro/Study Corporation
found that the proposed development was viable and probable to succeed. In addition to
the City's participation, the Zone secured the participation of both Brazoria County and
Ft. Bend County and of Alvin Independent School District as reflected in the Plan and as
memorialized in respective Interlocal agreements.
On March 27, 2006, the Board of Directors of the Zone voted to approve and recommend
adoption by City Council of a 1st Plan Amendment that would increase the Zone's
2°d Amendment to TIRZ 2 Project and Financing Plan 4
boundaries to include approximately 457 acres of land located south of FM 518. The 1st
Plan Amendment contemplates approximately $34 million in infrastructure
improvements, an increase of approximately $25,000 per year in administrative costs, and
approximately $250,000 in administrative costs for the annexation itself. (At the time of
writing of this 2nd Plan Amendment, City Council has not acted on the 1st Plan
Amendment.) The map below shows the existing and proposed new boundaries of the
Zone.
II. Proposed 2"d Plan Amendment
Pursuant to a request made by representatives of the Alvin Community College, the
Board of Directors of the Zone authorized the preparation of a 2"d Plan Amendment, to
allow the participation of Alvin Community College in the Zone at its March 27, 2006.
Action by the Board of Directors of the Zone is being made to allow and facilitate Alvin
2°a Amendment to TIRZ 2 Project and Financing Plan 5
Community College, the City of Pearland and the Zone Board to move toward a binding
interlocal agreement that will document the responsibilities, participation levels and other
relevant responsibilities of the respective parties.
Subject to approval by the City Council of Pearland, this 2nd Plan Amendment does not
amend any portion of the Project Plan and Reinvestment Zone Financing Plan except
Section F. of the Reinvestment Zone Financing Plan entitled "Methods of Financing And
Sources of Revenue (311.011(c)(6))," Section G. entitled "Total Current Appraised Value
(311.011(c)(7))," and Section H. entitled "Estimated Captured Appraised Value
(311.011(c)(8))."
With the adoption of this 2nd Plan Amendment, by the Board of Directors of the Zone and
City Council of Pearland, the following sections of the Reinvestment Zone Financing
Plan shall be amended to include participation by Alvin Community College as follows:
F. Methods of Financing And Sources of Revenue (311.011(c)(6))
This Sources of Revenue derived from participating jurisdictions section is amended to
include Alvin Community College beginning with tax year 2006 for a period of 10 years,
at the percent indicated in the chart below. Participation in this 2nd Plan Amendment will
be memorialized in writing by an Interlocal Agreement to be negotiated.
Taxing Entity
Zone Years
Percent Participation
City of Pearland
8
100% (a)
9-30
100% (b)
Brazoria County
8-30
38%
Fort Bend County
8-10
100%
11-20
75%
21-30
50%
Alvin Community College
8-18
50%
(a) 36% to be repaid as an Administrative Cost, provided never more than $0.255
(b) 64% to be repaid as an Administrative Cost, provided never more than $0.44
2nd Amendment to TIRZ 2 Project and Financing Plan
6
G. Total Current Appraised Value (311.011(c)(7))
The Base Year Value for Alvin Community College's participation in the original Zone
boundary will be 1998; the Base Year Value for its participation in the 1st Plan
Amendment boundary will be 2006. The most current certified appraised values are the
2005 certified values of the Brazoria County Appraisal District and the Fort Bend Central
Appraisal District as shown below:
Jurisdiction
Total Current Appraised
Value Original Zone
Total Current Appraised
Value 1st Amendment
Alvin Community College
$4,143,160
$2,905,330
H. Estimated Captured Appraised Value (311.011(c)(8))
The charts below shows the projections for captured appraised value for the balance of
the life of the Zone, and the resulting revenue attributable to the Alvin Community
College participation.
Alvin Community College
Tax Year
Incremental Property Tax Value
Base Value Original Zone
Base Value Annexation
Total Value
1998
4,143,160
2006
724,618,923
2,905,330 -
724,618,923
2007
952,383,870
-
1,677,002,793
2008
1,197,773,916
13,551,735
2,888,328,443
2009
1,452,105,469
108,637,587
4,449,071,499
2010
1,728,074,138
253,534,488
6,430,680,124
2011
1,899,178,122
314,790,875
8,644,649,121
2012
2,071,978,151
336,390,395
11,053,017,667
2013
2,215,268,712
361,178,747
13,629,465,125
2014
2,332,904,423
370,379,235
16,332,748,784
2015
2,392,137,946
379,855,737
19,104,742,467
NOTE: The base year value determination for the boundary of the 1st Plan Amendment will be 2006 as certified
2°d Amendment to TIRZ 2 Project and Financing Plan 7
Alvin Community College
Tax Year
Incremental Property Tax Revenue
Base Revenue Original Zone
Base Revenue Annexation
Cumulative
Increment
1998
9,842
2006
458,282
6,902 -
458,282
2007
774,616
-
1,232,898
2008
1,018,096
14,487
2,265,480
2009
1,280,417
116,133
3,662,031
2010
1,552,297
271,028
5,485,356
2011
1,847,307
336,511
7,669,173
2012
2,030,217
359,600
10,058,991
2013
2,214,939
386,099
12,660,029
2014
2,368,117
395,934
15,424,080
2015
2,493, 869
406,065
18, 324, 014
2"d Amendment to TIRZ 2 Project and Financing Plan 8