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HomeMy WebLinkAbout2006-08-28 TAX INCREMENT REINVESTMENT ZONE NO. 2 BOARD MEETING MINUTES MINUTES OF THE BOARD OF DIRECTORS MEETING TAX INCREMENT REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS August 28, 2006 A special meeting of the Board of Directors (“Board”) of the Tax Increment Reinvestment Zone Number Two (“Zone”), City of Pearland, Texas, was held in the Council Chambers of City Hall, which is located at 3519 Liberty Drive, Pearland, Texas, on Monday, June 5, 2006, at 4:00 p.m. The meeting was open to the public. Board Members in attendance: Board Members not in attendance: Nigel Harrison, Chair Mike Pyburn, Secretary Gary Cook, Vice Chair Ron Castillo Larry Loessin Ken Phillips Jo Knight Gary Davis Donna Coleman City of Pearland representatives in attendance: Consultants in attendance: Hon. Tom Reid Lynne Humphries - Allen Boone Humphries Bill Eisen Robinson, LLP Claire Manthei Trey Lary – Allen Boone Humphries Robinson, LLP Rick Overgaard Mark McGrath – Null-Lairson James Ross – LJA Engineering & Surveying, Inc. Sue Darcy – Knudson & Associates, LP Charles Knight – Knudson & Associates, LP Neal Rackleff - Locke Liddell & Sapp LLP Chris Johnson – Huitt-Zollars Developer representatives in attendance: Drew Pelter – Shadow Creek Ranch Development Company, Ltd. Chip Clarke – Transwestern Mark Miller - Transwestern Will Dean - Transwestern Kim Chapman - Transwestern 1. Call the meeting to order, take attendance and verify that a quorum is present. The meeting was called to order at 4:15 p.m. and attendance was taken. The following Directors were present: 1. Gary Cook 2. Larry Loessin 3. Jo Knight 4. Donna Coleman Chairman Nigel Harrison and Directors Ron Castillo, Ken Phillips, Gary Davis and Mike Pyburn were not in attendance. As there was no quorum yet present, the Board elected to hear the presentation of the 2005 Annual Report. Sue Darcy with Knudson & Associates LP reviewed the Report with the Board. She noted that the total appraised value within the Zone as of January 1, 2005 was approximately $483 million and the TIRZ No. 2 Revenue Fund Balance as of December 31, 2005 was approximately $1.5 million. She pointed out that home sales during the year 2005 totaled 876, with 1,068 home starts during that same period. Drew Pelter with Shadow Creek Ranch Development Company, Ltd. reported that, to date, 5,166 lots have been delivered to builders, which represents approximately 85 percent of the total of 6,119 planned lots. He noted that there have been approximately 2,700 home closings to date. He reported that most of the major public infrastructure is complete, including all 19 lakes, and that public improvement projects outlined in ten Letter Financing Agreements totaling $29.9 million were completed in 2005. He noted that approximately 2,866 homes have been sold to date, and approximately 500 homes are currently under construction. In 2006, homes are being sold at the rate of about 20 per week, which is similar to the 2005 sales rate. Mr. Pelter reported that Phase One of the Waterford Apartments, 300 units, is approximately 75 percent leased, and construction of Phase Two, which includes another 30 units, is expected to begin soon. The 85,000 square foot HCA Medical Office Building is open, and 80,000 square foot Memorial Hermann Medical Office Outpatient Center is under construction. Construction of a Buc-Ee’s and a Walgreens is underway, as well. Mr. Pelter noted that the development contains 316 acres of lakes, and approximately 25,250 trees and 135,000 shrubs have been planted. Bill Eisen noted that the expansion of Shadow Creek Parkway is not expected to begin until 2010, and that the State Highway 288 Major Investment Study is expected to be completed soon. He confirmed that the MIS includes consideration of toll lanes. Chair Nigel Harrison arrived at 4:44 p.m., thus constituting a quorum. At this point, 2. Discuss and approve the minutes of the June 5, 2006 Board meeting. The minutes of June 5, 2006 were presented and Director Cook moved that the Board approve those minutes without revision. Director Coleman seconded the motion. The Board unanimously approved the motion. 3. Discuss and take necessary action regarding Auditor’s Report on TIRZ Invoices Presented for Payment and approval for outstanding administrative invoices to date. Mark McGrath with Null-Lairson, Auditors for the Zone, reviewed the Report with the Board and confirmed that any invoices that exceed the estimated annual TIRZ administration and management cost of $175,000 will come before the full Board for consideration. Mr. McGrath also informed the Board that recently proposed Plan amendments contain proposals for increasing the estimated annual TIRZ administration and management costs. Director Knight moved that the Board approve the Auditor’s Report on the TIRZ invoices and the outstanding administrative invoices to date for payment. Director Loessin seconded the motion. Following discussion, the Board unanimously approved the motion. 4. Discuss and recommend 2005 Annual Report be presented to City Council for approval. Chair Harrison referred to the previous presentation of the 2005 Annual Report. Director Coleman moved that the Board adopt the 2005 Annual Report and recommended its presentation to City Council for approval. Director Cook seconded the motion. Following discussion, the Board unanimously approved the motion. 5. Discuss and take necessary action to approve Financials and Investment Reports. Claire Manthei, Finance Director for the City of Pearland, reviewed the July 2006 financial statements, as well as the Quarterly Investment Report as of June 30, 2006, with the Board. Director Coleman moved that the Board approve the July 2006 financial statements and the Quarterly Investment Report as of June 30, 2006. Director Knight seconded the motion. Following discussion, the Board unanimously approved the motion. 6. Discuss and take necessary action regarding Huitt-Zollars, Inc.’s construction audit work authorizations and reports for the following projects: a. Shadow Creek Ranch Additional Sidewalks, Project Number 06-08-001; b. Library Site Land Cost, Project Number 06-08-002. Chris Johnson with Huitt-Zollars, construction auditor for the Zone, reviewed the work authorizations and reports with the Board, confirming that the proposed projects complied with the Project Plan. Director Coleman moved that the Board approve the Huitt-Zollars work authorizations listed in agenda items 6.a and 6.b. Director Loessin seconded the motion. Following discussion, the Board unanimously approved the motion, with Director Cook abstaining. 7. Engineering Report on the following projects by LJA Engineering & Surveying, Inc.: a. Shadow Creek Ranch Additional Sidewalks, Project Number 06-08-001; b. Library Site Land Cost, Project Number 06-08-002; c. State Highway 288 Frontage Road, Project Number 06-08-003. James Ross with LJA Engineering, engineers for the Zone, reviewed the projects with the Board. Director Coleman moved that the Board approve the reports as listed in agenda items 7.a through 7.c. Director Knight seconded the motion. Following discussion, the Board unanimously approved the motion, with Director Cook abstaining. 8. Discuss and take necessary action regarding approval of Letter Financing Agreements for the following projects: a. Shadow Creek Ranch Additional Sidewalks, Project Number 06-08-001; b. Library Site Land Cost, Project Number 06-08-002; c. State Highway 288 Frontage Road, Project Number 06-08-003. Lynne Humphries with Allen Boone Humphries Robinson, attorneys for the Zone, reviewed the letter financing agreements (“LFA”) with the Board. Director Knight moved that the Board approve the letter financing agreements as listed in agenda items 8.a through 8.c. Director Coleman seconded the motion. Following discussion, the Board unanimously approved the motion, with Director Cook abstaining. 9. Discuss and take necessary action regarding approval of the Auditor’s Report on Developer Reimbursement No. 6 and make recommendation to City for Reimbursement. Mark McGrath with Null-Lairson, auditors for the Zone, reviewed the Report with the Board and confirmed that the projects contained in Letter Financing Agreement Nos. 01-11-002, 03-10-002, 06-03-001 and 06-08-002 were completed within the budget stated in the LFAs. Mr. McGrath noted that, per the Development Agreement with Shadow Creek Ranch Development Company, Ltd., the interest rate on these Developer Advances has been calculated at 6.5 percent. Director Loessin moved that the Board approve the Auditor’s Report on Developer Reimbursement No. 6 and recommend to the City that the projects contained therein be reimbursed. Director Coleman seconded the motion. Following discussion, the Board unanimously approved the motion, with Director Cook abstaining. 10. Receive PowerPoint presentation from Transwestern Commercial Services regarding Shadow Creek Ranch Town Center Project. Will Dean with Transwestern Commercial Services presented an overview of the Shadow Creek Ranch Town Center Project to the Board. He noted that the 600,000 square feet of planned retail space includes the following tenants: HEB Plus, Academy, Hobby Lobby, La Madeleine, Verizon, Taco Cabana, and Lupe Tortilla. The anticipated opening of the project is late summer 2007. Plans are being developed to widen Broadway to six lanes. It is estimated that the project will add approximately $85,560,000 in assessed value upon completion. Proposed TIRZ- reimbursable projects include engineering, street paving, landscaping, detention and drainage, and utility and pipeline relocation. The Board took no action on the report. 11. Discuss and take necessary action regarding City's request that the Zone amend its Project Plan and Financing Plan to include additional public improvements (Transwestern Project and Broadway expansion between Kirby Drive and Kingsley Drive), authorize Knudson & Associates, LP, Allen Boone Humphries Robinson, LP and LJA Engineering and Surveying, Inc. to prepare amendments to the Project Plan and Financing Plan, and authorize Zone consultants to work with other taxing jurisdictions to determine their participation in the amended Project Plan and Financing Plan. Lynne Humphries requested that the Board authorize Knudson & Associates, LP, Allen Boone Humphries Robinson, LP and LJA Engineering and Surveying, Inc. to prepare amendments to the Project Plan and Financing Plan, and authorize Zone consultants to work with other taxing jurisdictions to determine their participation in the amended Project Plan and Financing Plan. Director Loessin asked if the subject property is within the TIRZ boundary, to which Ms. Humphries responded that it is. She added that the TIRZ improvements proposed by Transwestern are not currently listed as eligible project costs in the Plan, hence the request of the Board to begin work on a Plan amendment to make these projects eligible. She also added that the City has asked that the widening of Broadway be included in the Plan amendment from Kirby Drive to Kingsley Drive. Bill Eisen, City Manager, further noted that the City would like the Plan amendment to include the widening of Broadway west of Kingsley Drive to the western Zone boundary, as well as the extension of the Zone’s southern boundary to include the southern right-of-way of Broadway. Director Cook moved that the Board authorize Knudson & Associates, LP, Allen Boone Humphries Robinson, LP and LJA Engineering and Surveying, Inc. to prepare such amendments to the Project Plan and Financing Plan as discussed today, and authorize Zone consultants to work with other taxing jurisdictions to determine their participation in the amended Project Plan and Financing Plan. Director Coleman seconded the motion. Following discussion, the Board unanimously approved the motion. 12. New Business. No new business was brought before the Board. 13. Any other matters which may properly come before the Board. There were no other matters brought before the Board. 14. Adjournment. There being no further business, Director Cook moved that meeting be adjourned. Director Coleman seconded the motion. Following discussion, the meeting was adjourned at 5:34 p.m. Approved: ____________________ Mike Pyburn Board Secretary Tax Increment Reinvestment Zone Number Two City of Pearland, Texas