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R99-062 08-30-99A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, REPEALING RESOLUTION NO. R99 -56 AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO AN INTERLOCAL AGREEMENT WITH BRAZORIA COUNTY TO COOPERATE IN ESTABLISHING CONDITIONS FOR PARTICIPATION IN TAX INCREMENT REINVESTMENT ZONE NO. 2 WITHIN THE CORPORATE CITY LIMITS OF PEARLAND. BE IT RESOLVED Section 1. designee to enter establishing terms of participation in Tax Increment Reinvestment Zone No. 2 is hereby repealed. Section 2. That certain interlocal agreement by and between the City of Pearland and Brazoria County, a copy of which is attached hereto as Exhibit "A" and made a part hereof for all purposes, is hereby authorized and approved. Section 3. That the City Manager or his designee is hereby authorized to execute and the City Secretary to attest the original of the attached agreement for and on behalf of the City of Pearland, to cooperate with the aforementioned entity in establishing conditions for participation in Tax Increment Reinvestment Zone No. 2 within the corporate city limits of Pearland. PASSED, APPROVED and ADOPTED this the .30 day BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: That Resolution No. R99 -56, authorizing the City Manager or his into an interlocal agreement with Brazoria County to cooperate in 0 S A.D., 1999. RESOLUTION NO, R99 -62 1 of TOM REID MAYOR TM RESOLUTION NO. R99 -62 ATTEST: NGLO°'G SEC" SECTARY APPROVED AS TO FORM: C DARRIN M. COKER CITY ATTORNEY 2 Ci_ County The Reinvestment Zone City Manager or Designee City of Pearland, Texas 3519 Liberty Drive Pearland, Texas 77581 Brazoria County Attention County Judge Brazoria County Court House 111 Locust Angleton, Texas 77515 The Reinvestment Zone Attention President c/o City of Pearland, Texas 3519 Liberty Drive Pearland, Texas 77581 THE STATE OF TEXAS COUNTIES OF FORT BEND, BRAZORIA AND HARRIS TAX INCREMENT PARTICIPATION AGREEMENT L PARTIES A. Address THIS TAX INCREMENT PARTICIPATION AGREEMENT "Agreement is made by and between the CITY OF PEARLAND, TEXAS "City a municipal corporation and home -rule city of the State of Texas principally situated in the Counties of Fort Bend, Brazoria, and Harris, acting by and through its governing body, the City Council; BRAZORIA COUNTY "County located at The Brazoria County Court House, 111 Locust, Angleton, Texas 77515 and the REINVESTMENT ZONE NUMBER TWO, CITY OF PEARLAND, TEXAS (the "Reinvestment Zone a reinvestment zone created by the City of Pearland pursuant to Chapter 311 of the Texas Tax Code, acting by and through its Board of Directors. This Agreement is made pursuant to Chapter 791 of the Texas Government Code and Section. 311.013 of the Texas Tax Code, The initial addresses of the parties, which one party may change by giving written notice of its changed address to the other parties, are as follows: Section Description 'ages I. Parties 1 II. Definitions 5 III. Background 6 IV. Obligations of the County 6 V. Obligations of City and the Reinvestment Zone 8 VI. Term and Termination 9 VII. Miscellaneous 9 B. Index The City, the County and the Reinvestment Zone hereby agree to the terms and conditions of this Agreement. This Agreement consists of the following sections: A: \BrazoriaCounty- Final.doc Exhibit "A" City of Pearland Ordinance No. 891 C. Parts incor orated All of the above described sections and documents are hereby incorporated into this Agreement by this reference for all purposes. -2- executed this Agreement in multiple copies, each of which is an original. CITY OF PEARLAND, TEXAS, a home rule municipality ATTEST: (SEAL) COUNTERSIGNED: City"Maer IN WITNESS HEREOF, the City, the County and the Reinvestment Zone have made and A:\BrazoriaCounty- Final.doc APPROVED AS TO FORM: im e. 8/h Date -3- BRAZORIA COUNTY Commissioner Commissioner APPROVED AS TO FORM: Date Commissioner Date Commissioner Date Date Attorney 1 Date 83( -99 REINVESTMENT ZONE NUMBER TWO, CITY OF PEARLAND, TEXAS By: D a e Title: Chairman, Board of Directors ATTEST /SEAL: A:\BrazoriaCounly- Final.doc 1) 8,43/ /f1 By: Date Title: Secretary, Board of Directors [The remainder of this page is intentionally left blank.] -4- II. DEFINITIONS As used in this Agreement, the following terms shall have the meanings set out below: "Administrative Costs" means the costs of organizing the Reinvestment Zone, the costs of operating the Reinvestment Zone and the imputed administrative costs associated with the Reinvestment Zone incurred by the City in connection with the implementation of the project plan. "Agreement" means this agreement between the City, the County and the Reinvestment Zone. "Agreement Term" is defined in Section VI. "Captured Appraised Value" for a given tax year means the total appraised value of the real property in the Reinvestment Zone less the Tax Increment Base. "City" is defined in Section I of this Agreement and includes its successors and assigns. "Consumer Price Index" means the Consumer Price Index for All Urban Consumers (CPI -U) U. S. City Average, Dallas -Fort Worth, and Houston Galveston Brazoria (1982 -1984 100) as published by the U. S. Department of Labor, Bureau of Labor Statistics. "Countersignature Date" means that date shown as the date countersigned by the City Manager on the signature page of this Agreement. "The County" is defined in Section I of this Agreement and includes its successors and assigns. "County Actual Cost of Service" is the total annual amount Brazoria"County has budgeted in a given fiscal year for the Governmental Services and Operations listed in Exhibit -B -to this Agreement, divided by the total number of dwelling units in Brazoria County certified to the County by the Brazoria County Appraisal District. "County Unit Cost of Service" means initially the sum of $218 which sum shall be increased by the percentage increase in the CPI from the Base Month (January, 2000) to the respective Comparison Month (January) as determined by the following formula (Comparison Month CPI divided by Base Month CPI times $218.) A: \BrazoriaCounty- Final.doc -5- If the Bureau of Labor Statistics discontinues publication of the CPI, the City and County agree to adopt a substitute index or procedure based on data published by the U. S. Department of Labor or by a public or private university which is intended to reflect any changes in consumer prices. "The County Tax Increment Participation" means the amount of the County tax levy on the Captured Appraised Value which the County agrees to contribute to the Reinvestment Zone pursuant to Subsections A and B of Section IV of this Agreement. "Project Plan" means the project plan and reinvestment zone financing plan for the Reinvestment Zone adopted by the board of directors of the Reinvestment Zone and approved by the City Council of the City. "Reinvestment Zone" means Reinvestment Zone Number Two, City of Pearland, Texas created by the City on December 21, 1998, by Ordinance No. 891, attached as Exhibit "A," and includes its successors and assigns. "Tax Increment Base" means the market value of all real property located in the Reinvestment Zone for the 1998 tax year, as determined by the Brazoria County Central Appraisal District (excluding exemptions). "Tax Increment Fund" means the tax increment fund created by the City in the City Treasury for the Reinvestment Zone. Otherwise, the terms used herein shall have the meanings ascribed to them in Chapter 311, Texas Tax Code, as applicable. III. BACKGROUND By Ordinance No. 891, adopted December 21, 1998, the City created the Reinvestment Zone for the purposes of development and redevelopment in the area of the Reinvestment Zone. The City will deposit tax increments produced in the Reinvestment Zone in the Tax Increment Fund. The County desires to participate in the Reinvestment Zone in consideration for the agreements set forth below. A:\BrazoriaCounly- Final.doe -6- A. Tax Increment Participation by the County For and in consideration of the agreement of the parties set forth herein, and subject to the remaining subsections of this section, the County agrees to participate in the Reinvestment Zone by contributing the amount of tax increment produced in the Reinvestment Zone attributable to the County collected by the County in each of the tax years at the tax rate described in Table IV -A below. In the event the County tax rate is less than the tax rate for the indicated tax year listed above, then the County Tax Increment Participation is the percentage of the total amount of taxes collected by the County at the actual tax rate of the County on the Captured Appraised Value. In a tax year in which the tax rate is greaterthan the County Tax Rate set forth in Table IV -A "County Tax Rate"), the County Tax Increment Participation shall be limited to the amount of tax produced at the County Tax Rate, and the County shall retain that portion of the taxes attributable to the County in excess of the actual tax rate levied by the County over the applicable County Tax Rate. The County's Tax Increment Participation and obligation to participate in the Reinvestment Zone shall be restricted to its tax increment collected on the Captured Appraised Value in the Reinvestment Zone in the amounts shown above. The County shall not be obligated to pay its County Tax Increment Participation from other County taxes or revenues or until the County Tax Increment Participation in the Reinvestment Zone is actually collected. The obligation to pay the County Tax Increment Participation shall accrue as taxes representing the County tax increment are collected and payment shall be due on August 1 of each year. A:BrazoriaCounly- Final,doc IV. OBLIGATIONS OF THE COUNTY Table IV -A County Tax Rate Per One Hundred Dollars Percentage of Tax Year of Assessed Value Total County Tax Rate 1999 2028 $0.1359 38% -7- B. Expansion of the Investment Zone The obligation of the County to participate in the Reinvestment Zone is limited to the area described in Exhibit "A" attached hereto. The County's participation shall not extend to the tax increment on any additional property added to the Reinvestment Zone by the City unless the County approves the participation. C. Board of Directors As a participating taxing unit, the County shall have the right to appoint one (1) member on the Reinvestment Zone Board of Directors. Failure of the County to appoint a person to the Board of Directors of the Reinvestment Zone by September 30, 1999, shall be deemed a waiver of the County's right to make an appointment by a later date. V. OBLIGATIONS OF CITY AND THE REINVESTMENT ZONE A. Copy of the Project Plan A copy of the Reinvestment Zone Project Plan and any amendments thereto shall be provided to the County before any such plan is finally approved by the Reinvestment Zone. Any amendment to the Project Plan shall be submitted to the County for review prior to adoption. B. Operation of Libraries The City and the Reinvestment Zone agree that a County- operated public library will not be constructed in the Reinvestment Zone, unless the County consents to the construction of such library. C. Disannexation Once Reinvestment Zone bonds have been sold, the City agrees that it will never disannex any property within the Reinvestment Zone. D. Responsibility for Reinvestment Zone Debt The City and the Reinvestment Zone agree that the County is not liable for the debt of the Reinvestment Zone, or any debt issued by the City or related instrumentality thereof secured by revenues of the tax increment fund, or other revenues available to pledge to such bonds. AABrazoriaCounty- Finaidoc -8- E. Development in Accordance with the Planned Unit Development The City agrees that all development within the Reinvestment Zone will be in accordance with the Planned Unit Development. The City will enforce the requirements of the Planned Unit Development on all development within the Reinvestment Zone. F. Audit The Reinvestment Zone and the City agree that the County has the right to conduct a reasonable audit of the records, including the financial records of the Reinvestment Zone and access to such records shall not be unreasonably withheld or delayed. The Reinvestment Zone and the City agree to provide the annual financial audit of the Reinvestment Zone within 90 days of the completion of such audit. G. Expenses The City agrees to pay solely from the tax increment fund the direct expenses of the County incurred for financial, legal and planning consultants in determining its participation in the Reinvestment Zone, and in connection with the review of the Project Plan and the negotiation of this Agreement. H. Developer Interest The City agrees that the Project Plan will include a provision that limits the amount of reimbursement to the (for the full amount of eligible Master Improvements, plus amounts required to reimburse the Developer for funds advanced in connection with the creation and administration of the Reinvestment Zone and the conception, design and construction of the TIRZ Improvements), that is reimbursable at simple interest calculated at eight percent per annum, until paid, for a maximum period of five years from the completion of the applicable TIRZ Improvements, to $20 million for the eligible Master Improvements.and $1 million for the creation and administration of the Reinvestment Zone. Ad&azoriaCaunty- Final.doc -9- VI. TERM AND TERMINATION A. Agreement Term This Agreement shall become effective as of the date of the final signature hereto, and shall remain in effect until thirty (30) years later. The first payment of the County Tax Increment Participation shall be for those taxes levied by the County in the year 1999 and the last payment by the County under this Agreement is for those taxes levied by the County in the year 2028. B. Early Termination by City The City shall not adopt an ordinance terminating the Reinvestment Zone earlier than the duration of the Zone established in Ordinance No. 891, without the prior consent of the County, provided that the Reinvestment Zone may otherwise terminate by operation of law. C. Early Termination or Modification by the County (a) Subject to (c) below, the County may reduce its participation in the Zone under this Agreement for the remaining term of the Zone, by the adoption of a written order of the Commissioner's Court adopted prior to September 30 of such year if the Captured Appraised Value is less than 50% of the values for each of the listed tax years indicated in Table VI -C, or (b) Subject to (c) below, that in such listed tax years, if the County Unit Cost of Service is lower than the County's Actual Cost of Service, the County may reduce its participation in the Zone under this Agreement for the remaining term of the Zone so that the County's retained tax increment covers the County's Actual Cost of Service for dwelling units in the Zone by at least 1.32 times, but the reduction percentage may not increase the County's retained tax increment revenue to cover more than County Unit Cost of Service plus ten percent. A:\BrazoriaCounty- Final, doc -10- A: \DrazoriaCounty- Final. doc Table VI -C Tax Captured Year Appraised Value 2006 655,340,658 2011 1,338,693,425 2016 1,414,004,025 2021 1,414,004,025 2026 1,414,004,025 (c) Provided, however, that if the City, the Zone or an agency or instrumentality of the City or Zone have (1) issued bonds or notes (the "Bonds secured by revenues in the tax increment fund or under a contract secured by payments of the tax increment revenues, or (2) entered into a project cost agreement(s) for the implementation of the Zone Project Plan pledging the payment of the tax increment for the payment of developer advances then incurred or construction contracts awarded and executed, the County may not reduce its participation under the provisions of subparagraphs (a) or (b) of this Section to an amount less than its cumulative annual pro rata share of the tax increment pledged to make payments on all of such Bonds or agreements. For the purpose of identifying the County's pro rata obligations under this Section, at the time of each issuance of Bonds or the execution of each agreement, the City shall provide to the County a schedule showing the County's pro rata share of all payments to be made for such Bonds or under such agreements that are secured by the County's tax increment under this Agreement. The City may not issue bonds or notes, the payment of principal, interest or premium of which are secured by the tax increment attributable to the County tax increment paid under this Agreement unless the City's financial advisor shall certify in writing to the City Council that the total annual tax increment revenues, less TIRZ administrative fees, is equal to or greater than 125% of the total annual amount to all outstanding and proposed TIRZ bond or note payments and contractual obligations. In the event that no additional taxable improvements are constructed in the Zone by January 1, 2006, the County may terminate this Agreement. D. Disposition of Tax Increments Upon termination of the Reinvestment Zone, if all public improvements in the Project Plan have been constructed and financed and if all Reinvestment Zone debt is paid in full, the City and the Reinvestment Zone shall pay to the County all monies remaining in the Tax Increment Fund that are attributable to the County Tax Increment Participation. VII. MISCELLANEOUS A. Severability In the event any term, covenant or condition herein contained shall be held to be invalid by any court of competent jurisdiction, such invalidity shall not affect any other term, covenant or condition herein contained, provided that such invalidity does not materially prejudice either the County, the City or the Reinvestment Zone in their respective rights and obligations contained in the valid terms, covenants or conditions hereof. In the event any term, covenant or condition shall be held invalid and affects in any manner the limitations on the County's contributions or participation, then this Agreement shall be void as to the County and the County shall have no liability for any incremental or other payments as may otherwise be provided for in this Agreement. B. Entire Agreement This Agreement merges the prior negotiations and understandings of the parties hereto and embodies the entire agreement of the parties, and there are no other agreements, assurances, conditions, covenants (express or implied) or other terms with respect to the covenants, whether written or verbal, antecedent or contemporaneous, with the execution hereof. C. Written Amendment Unless otherwise provided herein, this Agreement may be amended only by written instrument duly executed on behalf of each party. A:IBrazoriaCounty- Final.doc -12- D. Notices All notices required or permitted hereunder shall be in writing and shall be deemed delivered when actually received or, if earlier, on the third (3rd) day following deposit in a United States Postal Service post office or receptacle with proper postage affixed (certified mail, return receipt requested) addressed to the respective other party at the address prescribed in Section I of this Agreement or at such other address as the receiving party may have theretofore prescribed by notice to the sending party. E. Non Waiver Failure of any party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies accruing hereunder upon default or failure of performance shall not be considered a waiver of the right to insist on, and to enforce by any appropriate remedy, strict compliance with any other obligation hereunder or to exercise any right or remedy occurring as a result of any future default or failure of performance. F. Assignment No party shall assign this Agreement at law or otherwise without the prior written consent of the other parties. No party shall delegate any portion of its performance under this Agreement without the written consent of the other parties. AABrazoriaCoonty- Final.doc -13- G. Successors This Agreement shall bind and benefit the parties and their legal successors. This Agreement does not create any personal liability on the part of any officer or agent of the City or of any trustee, officer, agent or employee of the County. H. No Waiver of Immunity No party hereto waives or relinquishes any immunity or defense on behalf of itself, its trustees, officers, employees, and agents as a result of its execution of this Agreement and performance of the covenants contained herein. A :BrazoriaCounty- Final.doc -14- EXHIBIT A VEH01109 :73035.1 City of Pearland, Texas, Ordinance No; 891 AN ORDINANCE DESIGNATING A CONTIGUOUS GEOGRAPHIC AREA WITHIN THE CITY OF PEARLAND AS REINVESTMENT ZONE NUMBER TWO, CITY OF PEARLAND, TEXAS; CREATING A BOARD OF DIRECTORS FOR SUCH ZONE; MAKING VARIOUS FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING A SEVERABILITY CLAUSE. WHEREAS, the City Council has received petitions (the "Petitions requesting that a contiguous geographic area in the City of Pearland (the "City"), be designated as a reinvestment zone under the provisions of Chapter 311 of the Texas Tax Code; and WHEREAS, the Petitions were submitted by the owners of property constituting at least fifty percent of the appraised value of the property in the proposed reinvestment zone according to the most recent certified appraisal rolls for Brazoria and Fort Bend Counties, Texas, the counties in which the proposed zone is located; and WHEREAS, the City has prepared a preliminary reinvestment zone financing plan and has presented the plan to the governing body of each taxing unit that levies taxes on real property in the proposed reinvestment zone; provided written notice of its intent to establish the reinvestment zone on September 30, 1998, and made a formal presentation to representatives of Brazoria County, Fort Bend County, Alvin Community College, Brazoria Drainage District No. 4, Pearland Independent School District, Alvin Independent School District and Fort Bend Independent School District pursuant to Section 311.003 of the Texas Tax Code; and WHEREAS, the preliminary reinvest<uent zone financing plan provides that the City's ad valorem taxes are to be deposited into the tax increment fund, and that taxes of other taxing units may be utilized in the financing of the proposed zone; and WHEREAS, following notice thereof, published on December 13, 1998, in the Houston Chronicle, a newspaper of general circulation in the City, a hearing was held on the creation of the proposed zone on December 21, 1998, such hearing being more than 60 days following notice to the taxing units described above; and WHEREAS, at the public hearing, all interested persons were allowed to speak for or against the creation of the proposed zone, its boundaries, or the concept of tax increment financing and evidence was received and presented at the public hearing in favor of the creation of the proposed zone under the provisions of Chapter 311, Texas Tax Code; WHEREAS, no owner of real property in the proposed zone protested the inclusion of his property in the proposed zone; and WHEREAS, in its consideration of the creation of the proposed reinvestment zone, the City Council anticipates the participation of the various other taxing units at levels sufficient to carry out the proposed projects, and if the actual level of participation by the other taxing units is insufficient in the determination of the City Council, the proposed reinvestment zone may he terminated by the City pursuant and subject to the applicable provisions of Chapter 311 of the Texas Tax Code; and WHEREAS, the City will not incur financial obligation solely as a result of the approval of the creation of the reinvestment zone, with any such financial obligations to be incurred only upon further approval by City Council, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. Findings. (a) That 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. VEH0009:73035.1 -2- (b) That the City Council further finds and declares that the proposed improvements in the zone will significantly enhance the value of all the taxable real property in the proposed zone and will be of general benefit to the City. (c) That the City Council further finds and declares that the proposed reinvestment zone meets the criteria of Section 311.005 of the Texas Tax Code because the proposed zone is an area designated in a petition submitted by the owners of property constituting at least 50 percent of the appraised value of the property in the area requesting that the area be designated as a reinvestment zone. further finds and declares: (1) That the proposed zone is a contiguous geographic area located wholly within the corporate limits of the City of Pearland; (2) That the total appraised value of taxable real property in the proposed zone, and in existing reinvestment zones, if any, does not exceed fifteen percent of the total appraised value of taxable real property in the City and in industrial districts created by the City; (3) That the proposed zone does not contain more than fifteen percent of the total appraised value of real property taxable by Brazoria County, Fort Bend County, Alvin Independent School District, or Fort Bend Independent School District; (4) That development or redevelopment within the boundaries of the proposed zone will not occur solely through private investment in the reasonably foreseeable fixture. Section 2. Designation of the Zone That the City, acting under the provisions of Chapter 311, Texas Tax Code (the "Act including Section 311.005(a)(5), does hereby create and designate a reinvestment zone over the area VEN0009 :73035.1 (d) That the City Council, pursuant to the requirements of Chapter 311, Texas Tax Code, -3- described in Exhibit "A" and depicted in the map attached hereto as Exhibit "B." The reinvestment zone shall hereafter be identified as Reinvestment Zone Number Two, City of Pearland, Texas (the "Zone The City Council specifically declares that the Zone is designated pursuant to Section 311.005(a)(5) of the Texas Tax Code. Section 3. Board of Directors That there is hereby created a Board of Directors for the Zone, which shall consist of nine (9) members. Position One on the Board of Directors shall be filled by the State Senator representing the area included within the Zone or his or her designee. Position Two on the Board shalt be filled by the State Representative representing the area included within the Zone or his or her designee. The Mayor is hereby authorized to nominate and appoint the remaining seven (7) members of the Board to Positions Three through Nine, subject to the consent and approval of the City Council; provided, however, that (i) Brazoria County shall be entitled to appoint a director to Position Nine if Brazoria County approves the payment of all or part of the tax increment attributable to Brazoria County, (ii) Fort Bend County shall be entitled to appoint a director to Position Eight if Fort Bend County approves the payment of all or part of the tax increment attributable to Fort Bend County, (iii) the Alvin Independent School District "Alvin ISD shall be entitled to appoint a director to Position Seven if Alvin ISD approves the payment of all or part of the tax increment attributable to Alvin ISD, and (iv) the Fort Bend Independent School District "Fort Bend ISD shall be entitled to appoint a director to Position Six if Fort Bend ISD approves the payment of all or part of the tax increment attributable to Fort Bend ISD. Failure of Brazoria County, Fort Bend County, Alvin ISD, or Fort Bend ISD to appoint a director by March 1, 1999, shall be deemed a waiver of that taxing unit's right to appoint a director, and the Mayor shall be entitled to nominate and appoint persons to such positions, subject to the consent and approval of City Council. VEH0009:73035,1 -4- The directors or their designees in Position One and Position Two shall be members of the board by operation of law pursuant to Section 3I 1.009(b), Texas Tax Code. The initial directors appointed to Positions Three, Four and Five shall be appointed for two -year terms, beginning January 1, 1999, while the directors appointed to Positions Six, Seven, Eight and Nine shall be appointed to one -year terms, beginning January I, 1999. All subsequent appointments shall be for two -year terms. The member of the Board of Directors appointed to Position Three is hereby designated to serve as the chair of the Board of Directors for a term beginning January 1, 1999, and ending December 31, 1999. Thereafter, the Mayor shall annually nominate and appoint, subject to City Council approval, a member to serve as chair for a term of one year beginning January 1 of the following year. The City Council authorizes the Board of Directors to elect from its members a vice chairman and such other officers as the Board of Directors sees fit. The Board of Directors shall prepare or cause to be prepared and adopt a project plan and a reinvestment zone financing plan for the Zone as described in Section 311.011, Texas Tax Code, and shall submit such plans to the City Council for its approval. The City hereby delegates to the Board of Directors all powers necessary to administer, manage and operate the Zone and prepare and implement the project plan and reinvestment zone financing plan, subject to approval by the City Council, including the power to employ any consultants or enter into any reimbursement agreements payable solely from the Tax Increment Fund established pursuant to Section 6 of this Ordinance subject to the approval of the City Manager, that may be reasonably necessary to assist the Board of Directors in the preparation of the project plan and reinvestment zone financing plan and in the issuance of tax increment obligations. Section 4. Duration of the Zone That the Zone shall take effect on January 1, 1999, and termination of the operation of the Zone shall occur on December 31, 2028, or at an earlier time designated by subsequent ordinance, VEH0009:73035,1 -5- or at such time, subsequent to the issuance of tax increment bonds, if any, that all project costs, tax increment bonds, and the interest on the bonds. have been paid in full. Section 5. Tax Increment Base That the Tax Increment Base for the Zone is the total appraised value of all real property taxable by the City and located in the Zone, determined as of January 1, 1998, the year in which the Zone was effective and designated as a reinvestment zone (the "Tax Increment Base Section 6. Tax Increment Fund That there is hereby created and established a Tax Increment Fund for the Zone which may be divided into subaccounts as authorized by subsequent ordinances. All Tax Increments, as defined below, shall be deposited in the Tax Increment Fund. The Tax Increment Fund and any subaccounts shall be maintained at the depository bank of the City and shall be secured in the manner prescribed by law for Texas cities. The annual Tax Increment shall equal the amount by which the then- current appraised value of all taxable real property located in the Zone exceeds the Tax Increment Base of the Zone. less any amounts that are to be allocated from the Tax Increment pursuant to the Act. All revenues from the sale ofany tax increment bonds or other notes hereafter issued by the City, if any, revenues from the sale of property acquired as part of the tax increment financing plan, if any, and other revenues to be used in the Zone shall be deposited into the Tax Increment Fund. Money shall be disbursed from the Tax Increment Fund only to pay project costs for the Zone, as defined by the Texas Tax Code, to satisfy the claims of holders of tax increment bonds or notes issued for the Zone or pursuant to any agreement the Board of Directors considers necessary or convenient to implement the Zone's project plan and reinvestment zone financing plan and achieve their purposes. Section 7. Severability 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 held to be VEHOU09:73035.1 -6- unconstitutional, void or invalid, the validity of the remaining provisions of this Ordinance or their application to other persons or set of circumstances shall not be affected thereby, it being the intent of the City Council in adopting this Ordinance that no portion hereof or regulations contained herein shall become inoperative or fail by reason of any unconstitutionality voidness or invalidity of any portion hereof, and all provisions of this Ordinance are declared severable for that purpose. Section 8. Open Meetings It is hereby found, determined and declared that a sufficient written notice of the date, hour, place and subject of the meeting of the City Council at which this Ordinance was adopted was posted at a place convenient and rapidly accessible at all times to the general public at the City Hall of the City for the Time required by law preceding this meeting, as required by the Open Meetings Law, Texas Gov't Code Ann., ch. 551, and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter hereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 9. Notices The contents of the notice of the public hearing, which hearing was held before the City Council on December 21, 1998, and the publication of said notice, is hereby ratified, approved and confirmed. VEH0009:73035.1 -7- PASSED, APPROVED AND ADOPTED on Second and Final Readin(Pt}t s the4L day of December, 1998. APPROVED AS TO FORM: Darrin M. Coker City Attorney VEHOU09:73035.1 PASSED AND APPROVED on First Reading this the )'fay of December, 1998. -8- Tom Reid Mayor Tom Reid Mayor DESCRIPTION OF 3467 ACRES, MORE OR LESS SHADOW CREEK RANCH TAX INCREMENT REINVESTMENT ZONE November 3, 1998 Job No. 1545-9803-100 Being 3467 acres of land, more or less, located in the.Dupuy and Roberts Survey, Abstract 726. Brazoria County; William Morns Survey, Abstract 344, Brazoria County; T. C. R. R. Co. Survey, Section 3, Abstract 678, Brazoria County; T. C. R .R Co. Survey. Section 4 (John W. Marcy), Abstract 675, Brazoria County; Obediah Pitts Survey, Abstract 717, Brazoria County, H.T. B. R R. Co. Survey, Section 80 (J. S. Talmage), Abstract 564, Brazoria County; H. T. B. R R Co. Survey, Section 81, Abstract 300, Brazoria County; H. T. B. R R Co. Survey, Section 82 (J. S. Talmage), Abstract 565, Brazoria County; H. T. B. R R Co. Survey, Section 83, Abstract 305 in Brazoria County and Abstract 761 in Fort Bend County; S.G. Haynie Survey, Abstract 212 in Brazoria County and Abstract 620 in Fort Bend County; Franklin Hooper Survey, Abstract 198, Fort Bend County; George W. McDonald Survey, Abstract 577, Fort Bend County; I. C. Stafford Survey, Abstract 668, Fort Bend County and the H. Levering Survey, Abstract 279, Fort Bend County, Texas; said 3467 acres, more or less, being more particularly described as follows: BEGINNING at the common north corner of Lots 3 and 4, Block 10 of the ALLISON RICHEY GULF COAST HOME CO'S PART OF SUBURBAN GARDENS, SEC.'S 3 4, T.C.RR SURVEY AND SEC. 82. H. T. B. R R CO. SURVEY OBEDIAH PITTS SURVEY, a subdivision of record in Volume 2, Page 99 of the Plat Records of Brazoria County, Texas (B.C.P.R.) also being on the common line of the aforementioned T.C.RR Co. Survey, Section 4 and.the Dupuy and Roberts Survey; THENCE, SOUTHERLY, 782 feet, more or less along the common line of said Lots 3 and 4, to a point for comer on the southerly right-of-way line of Farm to Market Road 2234. 160 feet wide; THENCE, EASTERLY, 998 feet, more or less, along said southerly right-of-way line and its easterly extension, to a point for corner on the west line of the J. Crawley Survey, Abstract 174. Brazoria County, Texas; THENCE, SOUTHERLY, 3482 feet, more or less, along the west line of said J. Crawley Survey to a point for corner on the centerline of Hughes Ranch Road, also being the southwest corner of said J. Crawley Survey; THENCE, EASTERLY, 421 feet, more or less, along the southerly line of said J. Crawley Survey and along said centerline of Hughes Ranch Road, to a point for corner on the centerline of State Highway 288; 3467 Acres November 3, 1998 lob No. 1545- 9803 -100 THENCE, SOUTHERLY, 5326 feet. more or Tess. along said centerline of State Highway 288 to a point for corner on the southerly line of County Road 92, 40 foot wide. a dedicated road as shown on aforementioned ALLISON- RICHEY GULF COAST HOME CO.'S PART OF SUBURBAN GARDENS; THENCE, WESTERLY, 9448 feet, more or less, along the southerly line of said County Road 92, to a point for corner on the west line of aforementioned H. T. B. R R. Co. Survey. Section 80 and the east line the H. T. B. R. R. Co. Survey, Section 84 (R B. Lyle), Abstract 538 in Brazoria County and Abstract 767 in Fort Bend County; THENCE, NORTHERLY, 20 feet, more or less, along the common line of said H. T. B. R R. Co. Survey, Section 80 and Section 84, to a point for corner, same being the common corner of said H. T. B. R R Co. Survey, Section 80 and Section 84 and aforementioned H. T. B. R R Co. Survey, Section 82 and Section 83; THENCE, WESTERLY, 5280 feet, more or less, along the common line of said H T. B. R R Co. Survey, Section 83 and Section 84, to a point for comer on the east line of aforementioned Franklin Hooper Survey, same being the common west corner of said H. T. B. R R. Co. Survey, Section 83 and Section 84; THENCE, SOUTHERLY. 158 feet, more or Tess, along the common line of said H T. B. R R Co. Survey, Section 84 and the Franklin Hooper Survey, to a point for comer, same being the southeast corner of said Franklin Hooper Survey and the northeast corner of the A.B. Langerman Survey, Abstract 555, Fort Bend County, Texas; THENCE, EASTERLY, 2636 feet, more or less, along the common line of said Franklin Hooper Survey and said A.B. Langerman Survey, to a point for corner on the easterly right -of -way line of Farm to Market Road 521; THENCE. NORTHEASTERLY, 9667 feet, more or less, along said easterly right-of-way line, to a point for corner on the centerline of Clear Creek THENCE, NORTHEASTERLY, 1327 feet, more or Tess, along the centerline of Clear Creek to a point for corner on the aforementioned southerly right -of -way line of Farm to Market Road 2234: THENCE, SOUTHEASTERLY. 1519 feet, more or less, along said southerly right-of-way line to a point for Page 2 of 3 3467 Acres November 3, 1998 Job No. 1545- 9803 -100 corner on the of Fort Bend and Brazoria County line; THENCE, NORTHEASTERLY, 577 feet, more or less. along said county line, to a point for corner at the common corner of Brazoria, Fort Bend and Harris Counties: THENCE, NORTHEASTERLY, 2426 feet, more or less, along the of Brazoria and Harris County line, to a point for corner in the aforemention centerline of Clear Creek: THENCE, EASTERLY, 8250 feet, more or less, along the centerline meanders of Clear Creek to a point for corner on the northerly line of aforementioned Lot 3, Block 10 of said ALLISON- RICHEY GULF COAST HOME CO'S PART OF SUBURBAN GARDENS, same being on the aforementioned common survey line of the T. C. R. R. Co. Survey, Section 4 and the Dupuy and Roberts Survey; THENCE, EASTERLY, 453 feet, more or less, along said north line of Lot 3, Block 10 and said common survey line to the POINT OF BEGINNING and containing 3467 acres, more or less. Page 3 of 3 LIA Engineering Surveying, Inc. Brazoria County Budget Line Items to be included in Cost of Service Calculation Department County Court at Law #1 County Court at Law #2 County Court at Law #3 District Courts Judicial Miscellaneous District Attorney Constable Precinct 2 Sheriffs Office Detention Center Juvenile Probation JP Precinct #2, Place 1 JP Precinct #2, Place 2 County Clerk District Clerk EMS Fire EXHIBIT B