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