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1999-09-22 TAX INCREMENT REINVESTMENT ZONE NO. 2 BOARD MEETING MINUTESMINUTES OF THE BOARD OF DIRECTORS MEETING Tax Increment Reinvestment Zone Number Two CITY OF PEARLAND, TEXAS September 22, 1999 The meeting of the Board of Directors (`Board") of the Tax Increment Reinvestment Zone Number Two ("Zone"), City of Pearland, Texas, was held in the City Council Chambers of Pearland City Hall, located at 3519 Liberty Drive, Pearland, Texas, on Wednesday, September 22, 1999, at 4:00 p.m. The meeting was open to the public. Board Members in Attendance: Nigel Harrison, Chair Gary Cook, Vice Chair Mike Pyburn, Secretary James McFeron Larry Loessine Bobby Verdine City of Pearland Representatives in Attendance: Hon. Helen Beckman Alan Mueller Michael Ross Public in Attendance: None 1. Introduction. Board Members Not in Attendance: John Knox Jim DeShazer Consultants in Attendance: Lynne Humphries — Vinson & Elkins John Perry — LJA Engineering David Tinney — LJA Engineering Patti Joiner - Knudson & Associates Charles Knight - Knudson & Associates The Chair, Nigel Harrison asked those in attendance to introduce themselves for the benefit of the new Board Members. 2. Receive and consider qualifications of new Directors, receive Oaths and Sworn Statements. Lynne Humphries of Vinson & Elkins explained that House Bill 2684, which was recently passed by the State legislature, amended Section 311.009 of the Tax Code pertaining to the composition of any TIRZ Board of Directors. Specifically, the amendment states that a member of the Board of Directors of a Reinvestment Zone is not a public official by virtue of that position. As a result, there was no need to administer oaths and sworn statements to the new Board Members. 3. Call the meeting to order, take attendance and verify that a quorum in present. The Chair, Nigel Harrison called the meeting to order at 4:10 p.m. and took attendance. The following Board Members were present: 1. Bobby Verdine 2. Nigel Harrison 3. Gary Cook 4. James McFeron 5. Mike Pyburn 6. Larry Loessine Board Members Jim DeShazer and John Knox were not in attendance. 4. Discuss and approve minutes of the August 23, 1999 Board meeting. Following discussion, Board Secretary Mike Pyburn moved that the Board approve the minutes of the August 23, 1999 meeting without revision. Vice Chair Gary Cook seconded the motion. The Board unanimously approved the motion, with Board Members James McFeron and Larry Loessine abstaining. 5. Discuss TIRZ operations and procedures. Alan Mueller began by summarizing for the new Board Members the history of the creation of this TIRZ. He summarized the various taxing jurisdiction participation agreements that have been approved to date, including the development agreement. Mr. Mueller then stated the Board's primary responsibility is the authorization of the Developer to proceed with the construction of the public improvements, as well the authorization of the Developer reimbursements once a project phase has been completed. Lynne Humphries of Vinson & Elkins added that the Board is to cause the Project Plan and Reinvestment Zone Financing Plan to be implemented. A handout describing the TIRZ project implementation and reimbursement process was distributed to the Board and summarized by Lynne Humphries. Following discussion by the Board, it was decided the issue would be considered again at the next Board meeting. 6. Receive report from Developer. Vice Chair Gary Cook of Shadow Creek Ranch Development Company, L.P. reported that City Council approved the Development Agreement on September 13, 1999. He continued to say that the design of Phase 1 has begun and construction of those public improvements could begin as early as January of the year 2000. These improvements will include five miles of water line along FM 518, improvements to Kirby and the installation of a large monument located at Highway 288 and McHard Road. Defining the design criteria for the subdevelopers should be completed by the end of this year, with home constriction beginning as early as the end of the year 2000. Official grounding breaking will take place at a ceremony scheduled for October 12, 1999. Alan Mueller reported that the bid opening for the water line extension along FM 518 was scheduled for September 23, 1999. He also stated that the wastewater discharge construction project has been advertised for bid. A general discussion followed. 7. Consider and discuss Draft Master Developer Reimbursement Agreement by and between the City of Pearland, Texas, Reinvestment Zone Number Two, City of Pearland, Texas and Shadow Creek Ranch Development Company, L.P. A draft of the Master Developer Reimbursement Agreement was distributed to the Board. Lymze Humphries of Vinson & Elkins explained that the Board would make a recommendation to City Council after the Board had the opportunity to review and approve the Agreement. She assured the Board that should there be any changes to the Agreement once the Board has approved it, it must again be presented to the Board for its consideration. Following discussion, it was decided that the Board would continue consideration and discussion of this Agreement at its next Board meeting. 8. Consider and approve schedule of meetings. It was decided that the next Board meeting would take place on October 5, 1999 at 4:00 p.m. 9. New Business. No new business was brought before the Board. 10. Any other matters which may properly come before the Board. No other business was brought before the Board. 11. Adjournment. Board Secretary Mike Pyburn moved that the meeting be adjourned. Board Member James McFeron seconded the motion, and the Board unanimously voted to adjourn the meeting at 4:55 p.m. Approved: G iw4) Mike yburi Board Secretary Tax Increment Reinvestment Zone Number Two City of Pearland, Texas 3