1997-12-08 CITY COUNCIL PUBLIC HEARING MEETING MINUTESMINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON DECEMBER 8,1997, AT 6:30 P.M., IN THE COUNCIL
CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
The meeting was called to order with the following present:
Mayor
Mayor Pro -Tem
Councilmember
Councilmember
Councilmember
City Manager
Assistant City Attorney
City Secretary
Tom Reid
Helen Beckman
William Berger
Kevin Cole
Larry Wilkins
Paul Grohman
Darrin Coker
Young Lorfing
Others in attendance: Project Coordinator Alan Mueller; City Engineer John Hargrove;
Planning and Community Development Director Dennis Smith;
Members Absent: Councilmember Richard Tetens.
CREATION OF TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF
PEARLAND, TEXAS
To consider the creation of Tax Increment Reinvestment Zone Number One ("TIRZ") in
accordance with Chapter 311 of the Texas Tax Code.
STAFF REVIEW OF PROPOSED PLAN
Project Coordinator Alan Mueller stated that this Reinvestment Zone is approximately
eighty four acres and is within an area that was recently annexed by the city. He further
stated that the procedural requirements have been followed and other taxing entities that
overlap in the area have been given presentations in accordance with the law.
Sue Darcy representing the Planning Firm of Knudson and Associates and the Developer
Beazer Homes addressed Council and stated that Beazer Homes, nationally, is the sixth
largest home builder in the United States. They have been in Texas for two years. Ms.
Darcy stated that Knudson and Associates has drafted a Plan for "Special District
Financing" for utilities to this tract that Beazer Homes bought to develop.
Ms. Darcy explained that a Tax Increment Reinvestment Zone "TIFS" or "TIRZS" are
financing instruments that are available to cities through Chapter 311 of the Tax Code.
They allow a city to establish a Reinvestment Zone over a contiguous area and establish
a base year property tax value. The cities in a "TIF" do not give up any taxes. The
improvements that are done within the boundaries of the zone create additional ad
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valorem tax value above the base year value. The taxes generated on the additional
assessed value (increment) that are allowed to flow to that zone. The city never gives
up anything that it is getting now. The tax increment can be used to fund the
development improvements directly, to fund and secure bonds, or to pay the developer.
Ms. Darcy stated that Beazer Homes in its petition and in the project and financing plan
proposes for the developer to build two hundred and forty five single family homes on
eighty four acres and the Tax Increment Reinvestment Zone will fund a portion of the
water, sewer, and drainage improvements. The developer is requesting to be reimbursed
for approximately fifty percent of the total development cost attributable to the water,
sewer, and drainage that comprise the public improvements.
Ms. Darcy concluded by stating that the "TIRZ" and the reimbursements contemplated
herein are one hundred percent performance based. She further stated that the
developer has agreed in negotiations with the city staff that no bonds will be sold or debt
will be incurred by the city until such time as criteria has been met that allows the ad
valorem tax value to be on the ground. That will support the debt service that is
contemplated. She further stated again that it is one hundred percent performance
based.
City Manager Paul Grohman stated that this is part of the most recent annexed area,
which is approximately eighty four acres located to the west side of County Road 89 and
approximately four thousand feet south of FM 518.
CITIZEN COMMENTS
Dan Olson representative with Beazer Homes addressed Council and stated that this is
a good project, it will be good for the city and Beazer Homes. They look forward to being
in Pearland.
COUNCIL/STAFF DISCUSSION
City Manager Paul Grohman stated that this is a specialized case and he would not
normally recommend a "TIRZ" or a "TIF" in most instances, unless it had tremendous
commercial value. He further stated what that this is consistent with Council's Goals to
get utilities out 518 and this is a way to extend them. The down side is, that the city will
not receive any significant property tax revenue from the property for about seventeen
years. However, we will get impact fees, there will be franchise fees, and utility fees. Mr.
Grohman stated that in this specific instance we believe this is a great proposal and it
is good for the city and the developer.
There was further discussion regarding the plan, the board, and build -out of the property
between Council and Ms. Darcy.
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ADJOURNMENT
Meeting was adjourned at 6:55 p.m.
Minutes approved as submitted and/or corrected this the 12th day of
January , A.D., 1998.
Tom Reid
Mayor
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