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HomeMy WebLinkAbout2008-01-07 TAX INCRMENT REINVESTMENT ZONE BOARD MINUTESMINUTES OF THE BOARD OF DIRECTORS MEETING TAX INCREMENT REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS JANUARY 7, 2008 A special meeting of the Board of Directors (“Board”) of the Tax Increment Reinvestment Zone Number Two (“Zone”), City of Pearland, Texas, was held on Monday, September 17, 2007 at 3:00 p.m. in the Council Chambers, at Pearland City Hall, 3519 Liberty Drive, Pearland, Texas. The meeting was open to the public. Board Members in attendance: Board Members not in attendance: Gary Cook, Vice Chair Nigel Harrison, Chair Mike Pyburn, Secretary Ken Phillips Donna Coleman Gary Davis Jo Knight Larry Loessin Ron Castillo Consultants in attendance: Lynne Humphries – Allen Boone Humphries Robinson LLP James Ross – LJA Engineering & Surveying, Inc. Sue Darcy – Marsh Darcy Partners, Inc. Mark McGrath – Null-Lairson Developer representatives in attendance: Drew Pelter – Shadow Creek Ranch Development Company, Ltd. City of Pearland: Tom Reid – Mayor Bill Eisen – City Manager Claire Manthei – Finance Director Rick Overgaard – Assistant Finance Director 1. Call the meeting to order, take attendance and verify that a quorum is present. The meeting was called to order and attendance was taken. The following directors were present: 1. Gary Cook, Vice Chair 2. Mike Pyburn, Secretary 3. Donna Coleman 4. Gary Davis 5. Jo Knight 6. Larry Loessin Those present constituted a quorum. Directors Harrison, Castillo, and Phillips were not in attendance. 2. Discuss and approve minutes of the September 17, 2007 Board meeting; The minutes of the September 17, 2007, meeting were presented. Director Pyburn moved that the Board approve the minutes of the September 17, 2007, meeting without revision. Director Knight seconded the motion. The Board unanimously approved the motion. 3. Discuss and take necessary action regarding TIRZ invoices presented for payment; Claire Manthei, Director of Finance for the City of Pearland, stated the item includes invoices totaling $54, 404.03. The total includes $20, 877.89 for actual services rendered for the fiscal year 2007 and $33, 926.14 for services related to the fiscal year 2008. The invoices have all been reviewed and are appropriate charges. Director Cook asked if the operating cost is expected to be less now that several services have been consolidated with the City of Pearland. Bill Eisen, City Manager for the City of Pearland, stated the operating cost is expected to be reduced but the actual savings has not been determined at this time. Director Knight moved that the Board approve the City’s report on the TIRZ invoices and the outstanding administrative invoices to date for payment. Director Coleman seconded the motion. The Board unanimously approved the motion. 4. Review and approve financial report; Claire Manthei, Director of Finance for the City of Pearland, reviewed the financial report with the Board. She stated the report is for the month ending November 2007 and includes information for the months October and November. The total revenues are $465,477 of which the majority is from the City of Pearland tax contribution for the TIRZ. Contributions from Alvin Independent School District, Brazoria County and Fort Bend County have not been received yet, but will be included on the next report. Expenses total $2,568,050 which includes $2.3 million which was transferred to the Development Authority in November 2007 and administrative fees paid to the City of Pearland totaling $268,045. The beginning fund balance was $5.8 million and the ISD suspense fund is $2.8 million which leaves an ending available balance of $874,436. The TIRZ certified tax roll for the City of Pearland was $991 million, which equates to a tax levy at 100% of about $6.4 million. The TIRZ will be transferring a $3.1 million debt service payment to the Development Authority in August 2008. Director Davis moved that the Board approve the financial report. Director Coleman seconded the motion. The Board unanimously approved the motion. 5. Review and discussion of September 30, 2007 Quarterly Report and November 2007 Investment Report; Rick Overgaard, Assistant Finance Director for the City of Pearland, reviewed the September 30, 2007 Quarterly Report and November 2007 Investment Report with the Board. Director Coleman moved that the Board approve the September 30, 2007 Quarterly Report and the November 2007 Investment Report. Director Loessin seconded the motion. The Board unanimously approved the motion. 6. Discuss, and take necessary action to authorize the preparation of the 2007 Annual Report and recommend submitting Annual Report to City; Sue Darcy, Marsh Darcy Partners, Inc., stated this report is prepared annually and will now be prepared mainly by Marsh Darcy Partners, Inc. to consolidate the process. Director Coleman moved that the Board authorize the preparation of the 2007 Annual Report. Director Knight seconded the motion. The Board unanimously approved the motion. 7. Engineering report by LJA Engineering & Surveying, Inc. regarding Broadway Improvements from Kirby Drive to Kingsley Drive, Project Number 08-01-001. James Ross, LJA Engineering & Surveying, Inc., stated this is a new Letter of Financing for the third amendment to the TIRZ plan to include the middle section of Broadway Street from Kirby Drive to Kingsley Drive. The $8 million is for developing the entire tract and everything that is involved with that process. Lynne Humphries, Allen Boone Humphries Robinson LLP, stated this type of agreement is usually seen with the Developer. This agreement was modified because in this agreement the Developer is actually the City of Pearland. The City of Pearland will pre-finance the design and construction. The City of Pearland and Shadow Creek Ranch will enter into an agreement which will have Shadow Creek Ranch act as an administrator on the project. After review no action was taken by the Board. 8. Discuss and take necessary action regarding approval of Letter Financing Agreement for Broadway Improvements from Kirby Drive to Kingsley Drive, Project No. 08-01- 001. Director Pyburn moved that the Board approve the Letter of Financing for Broadway Improvements from Kirby Drive to Kingsley Drive. Director Davis seconded the motion. The Board unanimously approved the motion. 9. Discuss and take necessary action regarding approval of the auditor’s report on Developer Reimbursement No. 11 and make recommendation to City for Reimbursement; Director Cook stated he will abstain from voting on this item. Mark McGrath, Null-Lairson, reviewed the Auditor’s Report on Developer Reimbursement with the Board. He stated this information is the results of the current work that has been completed and that is reimbursable to Shadow Creek Ranch LP. Two Letters of Financing were reviewed and the total due back to the Developer as of January 15, 2008, is $5.4 million on the first Letter of Financing and $1.8 million on the second Letter of Financing. Director Davis moved that the Board approve the Auditor’s Report on Developer Reimbursement No. 11. Director Loessin seconded the motion. The Board unanimously approved the motion. 10. Accept assignment of Developer Reimbursement Agreement among the City, the TIRZ and Shadow Creek Retail, LP. Lynne Humphries, Allen Boone Humphries Robinson LLP, stated Shadow Creek Retail has a reimbursement agreement with the District. They are selling their retail tract and their right to reimbursement to AMREIT, a large commercial developer in Houston. TIRZ must consent to the transfer of reimbursement to AMREIT versus the Shadow Creek Retail. The sale is not final and the approval of the transfer of reimbursement will be null if the sale is not finalized. Director Pyburn moved that the Board accept the assignment of the Developer Reimbursement Agreement between the City, the TIRZ, and Shadow Creek Ranch. Director Coleman seconded the motion. Following discussion, the Board unanimously approved the motion. 11. New Business; No new business was brought before the Board. 12. Any other matters which may properly come before the Board; There were no other matters brought before the Board. 13. Adjournment. There being no further business, the Board adjourned by unanimous consent. Approved: ________________________ Nigel Harrison Chairman Tax Increment Reinvestment Zone Number Two City of Pearland, Texas