Agenda Packet TIRZ No. 2 07/16/2014TIRZ #2 Board
Trophy Club Entities
Meeting Agenda
100 Municipal Drive
Trophy Club, Texas 76262
Public Services Conference Room7:00 PMWednesday, July 16, 2014
CALL TO ORDER AND ANNOUNCE A QUORUM
CITIZEN PRESENTATIONS
1.2014-1280-T Discuss and take appropriate action regarding the April 28, 2014 Minutes.
004 April 28 2014 TIRZ2 Minutes.pdfAttachments:
2.2014-1281-T Discuss and take appropriate action regarding amending the Tax Increment
Reinvestment Zone (TIRZ) No. 2 boundaries and project and finance plan.
TIRZ #2 Boundaries Amendment Ordinance Staff Report - (TIRZ BOARD).pdf
Proposed Amended TIRZ #2 Boundary Map.pdf
DRAFT Ordinance 2014-XX.pdf
Attachments:
ADJOURN
*THE BOARD MAY CONVENE INTO EXECUTIVE SESSION TO DISCUSS POSTED
ITEMS AS ALLOWED BY THE TEXAS OPEN MEETINGS ACT, TEXAS LOCAL
GOVERNMENT CODE 551.071.
Notice is hereby given that a quorum of the Town Council may be in attendance at
this meeting.
TIRZ No. 2 Board Page 1 of 21 Wednesday, July 16, 2014
July 16, 2014TIRZ #2 Board Meeting Agenda
CERTIFICATION
I certify that the above notice was posted on the front window of the Svore Municipal
Building, 100 Municipal Drive, Trophy Club, Texas, on Thursday, July 10, 2014 by 5:00
P.M. in accordance with Chapter 551, Texas Government Code.
____________________________________________________________
Alora Wachholz
Economic Development & Marketing Coordinator
If you plan to attend this public meeting and have a disability that requires special
needs, please contact the Town Secretary’s Office at 682-831-4600, 48 hours in
advance and reasonable accommodations will be made to assist you.
I certify that the attached notice and agenda of items to be considered by this Board
was removed by me from the front window of the Svore Municipal Building, 100
Municipal Drive, Trophy Club, Texas, on the __________ day of
______________________, 2014.
________________________________, Title: ___________________________
TIRZ No. 2 Board Page 2 of 21 Wednesday, July 16, 2014
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12014-1280-T Name:
Status:Type:Agenda Item Regular Session
File created:In control:7/10/2014 TIRZ #2 Board
On agenda:Final action:7/16/2014
Title:Discuss and take appropriate action regarding the April 28, 2014 Minutes.
Attachments:004 April 28 2014 TIRZ2 Minutes.pdf
Action ByDate Action ResultVer.
Discuss and take appropriate action regarding the April 28, 2014 Minutes.
TIRZ No. 2 Board Page 3 of 21 Wednesday, July 16, 2014
1
MINUTES OF REGULAR SESSION FOR THE
TAX INCREMENT REINVESTMENT ZONE (TIRZ) NO. 2 BOARD
LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS
Monday April 28, 2014
6:00 p.m.
STATE OF TEXAS
COUNTY OF DENTON
The Tax Increment Reinvestment Zone (TIRZ) No. 2 Board of the Town of Trophy Club, Texas,
met in Regular Session on April 28, 2014. The meeting was held within the boundaries of the
Town and was open to the public.
TIF DIRECTORS PRESENT:
David Brod – Chair
Adam Broyles
Darrell Howard
Jared King
STAFF AND GUEST(S) PRESENT:
Stephen Seidel Assistant Town Manager
Alora Wachholz Economic Development & Marketing Coordinator
David Pettit Presenter
Chair Brod called the meeting to order and announced a quorum at 6:09 p.m.
CITIZEN PRESENTATIONS
REGULAR SESSION
1. Discuss and take appropriate action regarding the election of a Vice-Chair
recommendation to the Town Council.
Assistant Town Manager Stephen Seidel explained that the Town Council had approved the
creation of the TIRZ No. 2 Board with the members present and David Brod as Chair, but that a
recommendation for Vice Chair needed to be determined by the Board. Board Member Howard
made a motion to recommend Adam Broyles to serve as Vice Chair and Board Member Jared
King seconded. The motion was approved unanimously.
2. Presentation by David Pettit of Project and Financing Plan for Tax Increment
Reinvestment Zone No. 2.
Presenter David Pettit provided information regarding the Project and Financing Plan for the
TIRZ No. 2 to the Board.
3. Discuss and take appropriate action regarding a Resolution approving the Project
and Financing Plan for Tax Increment Reinvestment Zone No. 2.
Assistant Town Manager Stephen Seidel explained that this Plan is similar to the TIRZ No. 1
Plan which was approved in January. Board Member Howard made a motion to adopt the Plan
as presented. Board Member Broyles requested further clarity as to if the projections were
based on full retail build-out of PD-30, which falls within the TIRZ No. 2 boundary and David
Pettit responded in the affirmative. Board Member Broyles then asked if Denton County was
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2
interested in participating and Stephen Seidel responded that there was not a certain answer to
that question at this time. Board Member King seconded the original motion. The motion was
approved unanimously.
ADJOURN
Chair Brod moved to adjourn the meeting at 6:26 p.m. Board Member King seconded. The
motion passed unanimously.
______________________________ _______________________________
David Brod, Chair Adam Broyles, Vice Chair
TIRZ No. 2 Board Page 5 of 21 Wednesday, July 16, 2014
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12014-1281-T Name:
Status:Type:Agenda Item Regular Session
File created:In control:7/10/2014 TIRZ #2 Board
On agenda:Final action:7/16/2014
Title:Discuss and take appropriate action regarding amending the Tax Increment Reinvestment Zone
(TIRZ) No. 2 boundaries and project and finance plan.
Attachments:TIRZ #2 Boundaries Amendment Ordinance Staff Report - (TIRZ BOARD).pdf
Proposed Amended TIRZ #2 Boundary Map.pdf
DRAFT Ordinance 2014-XX.pdf
Action ByDate Action ResultVer.
Discuss and take appropriate action regarding amending the Tax Increment Reinvestment Zone (TIRZ)
No. 2 boundaries and project and finance plan.
TIRZ No. 2 Board Page 6 of 21 Wednesday, July 16, 2014
To: TIRZ #2 Board Members
From: Stephen Seidel, Assistant Town Manager
Re: TIRZ #2 Boundaries Amendment
Agenda Item:
Consider and take appropriate action regarding a recommendation to the Town Council to
enlarge the Tax Increment Reinvestment Zone Number Two by 11.02 acres; reduce the
boundaries of Tax Increment Reinvestment Zone Number Two by 5.27 acres, and approve an
amended project and finance plan for the zone.
Explanation:
TIRZ #2 was approved by Ordinance 2014-09 on April 21, 2014. The TIRZ boundary included
property located at 100 Municipal Drive owned by Municipal Utility District #1 (MUD). The MUD
Board opted to not participate in the TIRZ, and requested the Town Council remove their
property from the TIRZ boundary. Additionally, the Town Council provided direction to include
the vacant property owned by the Methodist Church (101 Trophy Club Drive). In order to
amend the TIRZ boundaries, the TIRZ #2 Board must consider the amendment and make a
recommendation to the Town Council and a Public Hearing be held by the Town Council. The
Town Council will hold a Public Hearing and consider the amendment at their July 22 meeting.
Altering the boundary does not adversely impact the TIRZ from a financial perspective.
Attachments:
DRAFT Ordinance 2014-XX
Proposed Amended TIRZ #2 Boundary Map
Town Council Goals:
Goal #1: Safe and secure community.
Maintain low crime rate
Increase citizen awareness and involvement in crime prevention
Provide superior Emergency Services
Improve data security
Goal #2: Business-Friendly Economic Development
Create effective working relationships with businesses and developers
Retain / Develop existing businesses
Promote new commercial opportunities
Goal # 3: Strong Partnerships and Community Involvement
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Create a positive regional identity
Foster a well informed community
Forge collaborative relationships with other governmental and public entities
Support citizen volunteer opportunities
Promote recreational / active lifestyle opportunities for all ages
Goal #4: Healthy, Picturesque, and Environmentally Sound
Promote recreational / active lifestyle opportunities for all ages
Maintain neat and tidy appearance
Improve property maintenance standards and code enforcement
Develop / Enhance environmental and sustainability standards and programs
Goal #5: Financial and Operational Stewardship
Develop, recognize, and retain quality staff
Implement strong financial management standards
Improve effectiveness and efficiency of operational processes
Maintain / Improve infrastructure and assets
Provide cost-effective services
Deliver responsible customer service
Recommendation:
Staff recommends the Board recommend to the Town Council to alter the TIRZ #2 boundaries.
TIRZ No. 2 Board Page 8 of 21 Wednesday, July 16, 2014
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TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 2014-XX
AN ORDINANCE ENLARGING THE BOUNDARIES OF TAX
INCREMENT REINVESTMENT ZONE NUMBER TWO, TOWN OF
TROPHY CLUB, TEXAS, BY 11.02 ACRES; REDUCING THE
BOUNDARIES OF TAX INCREMENT REINVESTMENT ZONE
NUMBER TWO, TOWN OF TROPHY CLUB, TEXAS BY 5.27
ACRES; APPROVING AN AMENDED PROJECT PLAN AND
REINVESTMENT ZONE FINANCING PLAN FOR TAX
INCREMENT REINVESTMENT ZONE NUMBER TWO; AND
CONTAINING OTHER RELATED MATTERS.
WHEREAS, on April 21, 2014, the Town Council of the Town of Trophy
Club, Texas (the “Town”) adopted Ordinance No. 2014-09, thereby creating Tax
Increment Reinvestment Zone Number Two, Town of Trophy Club, Texas (the
“Zone”) pursuant to the provisions of the Tax Increment Financing Act, Chapter
311, Texas Tax Code (the “Act”); and
WHEREAS, in accordance with Section 311.011(a) of the Texas Tax Code
(the “Code”), on April 28, 2014 the board of directors of the Zone (the “Board”)
adopted a project and financing plan for the Zone (the “Plan”), which, as required
by Section 311.011(d) of the Code, was approved by the Town Council on May 5,
2014 by Ordinance No. 2014-11; and
WHEREAS, Section 311.007 of the Code allows the Town Council to
reduce or enlarge the boundaries of an existing tax increment reinvestment
zone by ordinance subject to the limitations provided by Section 311.006 of the
Code; and
WHEREAS, by operation of Section 311.006 of the Code, a
municipality may change the boundaries of an existing tax increment
reinvestment zone so long as (i) less than thirty percent (30%) of the property
within the amended boundaries of the zone, excluding property that is publicly
owned, is used for residential purposes, as defined in Section 311.006(d) of
the Code; and (ii) the total appraised value of taxable real property in the
proposed zone and in existing reinvestment zones is less than 50 percent of the
total appraised value of taxable real property in the municipality and in the
industrial districts created by a municipality with a population of less than
100,000; and
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WHEREAS, the boundaries of the original Zone were approved in April
2014 and are depicted and described in Exhibit “B” (the “April 2014 TIF
Boundary”).
WHEREAS, accordingly, the Town wishes to enlarge the Zone by adding
11.02 acres to the property depicted and described in Exhibit “C” (the
“Expanded Area”), which Exhibit is attached hereto and hereby made a part of
this Ordinance for all purposes; and
WHEREAS, accordingly, the Town wishes to reduce the Zone by
removing 5.27 acres from the property depicted and described in Exhibit “D”
(collectively, the “Reduced Area”), which Exhibit is attached hereto and hereby
made a part of this Ordinance for all purposes; and
WHEREAS, Section 311.011(e) of the Code allows the board of directors
of a tax increment reinvestment zone to recommend an amendment to a
project plan for the Zone so long as the amendment is consistent with the
requirements and limitations of Chapter 311 of the Code and is approved by
the governing body of the municipality that created the zone; and
WHEREAS, on July 16, 2014 the Board recommended that the Trophy
Club Town Council adopt an amendment to the Plan; 1) including the
Expanded Area in the Zone; and 2) removing the Reduced Area in the Zone, which
is attached hereto as Exhibit “A” and is hereby made a part of this Ordinance for
all purposes; and
WHEREAS, Ordinance No. 2014-09 specifies that the Zone shall expire on
the earlier of December 31, 2046 or the date on which all project costs, tax
increment bonds and interest on those bonds have been paid in full; and
WHEREAS, in accordance with the procedural requirements of Section
311.003(c) and (d), on July 22, 2014 the Town Council held a public hearing
regarding the Amended Plan, the enlargement of the Zone, the reduction of the
Zone and the anticipated benefits that will accrue to the Town and to property in
the Zone as a result of such actions, and afforded a reasonable opportunity for all
interested persons to speak for or against the approval of the Amended Plan, the
addition of the Expanded Area to the Zone, the Reduced Area in the Zone, the
inclusion of any property in the Zone, the concept of the Zone and tax increment
financing generally; and
WHEREAS, notice of the public hearing was published in a newspaper of
general circulation in the Town on July 8, 2014 which date was not later than
seven (7) days prior to the date of the hearing; and
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WHEREAS, prior to the public hearing the Town provided written notice to
all taxing units levying real property taxes within the Zone of the Town’s intention to
add the property within the Expanded Area into the Zone and of the public hearing.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF
THE TOWN OF TROPHY CLUB, TEXAS:
SECTION 1. FINDINGS.
That after reviewing all information before it regarding the addition of the
Expanded Area to the Zone, the removal of the Reduced Area from the Zone
and after conducting a public hearing regarding the Amended Plan, the
enlargement of the Zone, the reduction of the Zone and the anticipated benefits
to the Town and to property in the Zone as a result of such actions, and
affording a reasonable opportunity for all interested persons to speak for or
against the approval of the Amended Plan, the addition of the Expanded Area
to the Zone, the removal of the Reduced Area from the Zone, the inclusion of
any property in the Zone, and the concept of tax increment financing generally,
the Town Council hereby makes the following findings of fact:
1.1. The statements, facts, terms and conditions set forth in the
recitals of this Ordinance are true and correct.
1.2. The Plan and the Amended Plan include all information required
by Sections 311.011(b) and (c) of the Code.
1.3. The Plan and the Amended Plan are feasible and the projects set
forth therein conform to the Town’s comprehensive plan.
1.4. The Expanded Area is located along Trophy Club Drive and
despite its central and strategic location, the Expanded Area
predominantly comprises undeveloped land, vacant commercially
zoned land, and underutilized and underdeveloped commercially
zoned land. Taking all facts into consideration, the Expanded
Area substantially impairs and arrests the sound growth of the
Town and constitutes an economic liability and a menace to the
public health and safety.
1.5. Improvements in the Zone, including the Expanded Area, as
specifically outlined in the Plan and Amended Plan, will
significantly enhance the value of all taxable real property in the
Zone, including the Expanded Area, and will be of general benefit to
the Town.
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1.6. The Expanded Area is subject to inclusion in the Zone pursuant to
Sections 311.007(a) and Sections 311.005(a)(1) of the Code.
1.7. With the addition of the Expanded Area and removal of the
Reduced Area, less than thirty percent (30%) of the property within
the Zone, excluding property that is publicly owned, will be used
for residential purposes, as defined in Section 311.006(d) of the
Code.
1.8. With the addition of the Expanded Area and the removal of the
Reduced Area, the total appraised value of taxable real property
in the Zone and in existing reinvestment zones will not contain
more than 50 percent of the total appraised value of taxable real
property in the municipality and in the industrial districts created by
the municipality.
1.9. Removal of the Reduced Area from the Zone will not adversely affect
development in the Zone or adversely affect either the Zone or the
Town in general.
1.10. The Reduced Area is subject to removal from the Zone pursuant to
Section 311.007(a) of the Code.
SECTION 2. DESIGNATION OF EXPANDED AREA FOR INCLUSION
IN THE ZONE AND REMOVAL OF REDUCED AREA FROM THE ZONE.
That the Town Council hereby enlarges the boundaries of the Zone by adding
the Expanded Area to the Zone and reduces the boundaries of the Zone by
removing the Reduced Area from the Zone. The Zone, has been designated
under Section 311.005(a)(1) of the Code and shall continue to be known as
“Tax Increment Reinvestment Zone Number Two, Town of Trophy Club,
Texas.” With addition of the Expanded Area to the Zone, and removal of the
Reduced Area, the Zone shall comprise the property depicted in Exhibit “E”,
which is attached hereto and hereby made a part of this Ordinance for all
purposes.
SECTION 3. ZONE BOARD OF DIRECTORS.
That the composition of the Board shall remain unchanged and shall continue
to conform to the requirements of Section 311.009 of the Code.
SECTION 4. DETERMINATION OF TAX INCREMENT BASE.
That the tax increment base, as defined by Section 311.012(c) of the Code, for
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the Expanded Area of the Zone shall be the total appraised value for the 2014
tax year of all real property within the Expanded Area taxable by a taxing unit.
The tax increment base of the Zone shall be reduced by the taxable appraised
value of the Reduced Area for the year 2014, which is the year in which the
Reduced Area was designated as part of the Zone pursuant to Ordinance No.
2014-09. The tax increment base for property located within the boundaries of
the Zone prior to the adoption of this Ordinance shall remain unchanged.
SECTION 5. TAX INCREMENT FUND.
That the Tax Increment Fund created and established for the Zone pursuant to
Ordinance No. 2014-09 (the “TIF Fund”) shall include (i) sixty percent (60%) of
the Town's portion of the tax increment, as defined by section 311.012(a),
Texas Tax Code, subject to any binding agreement executed at any time by
the Town that pledges a portion of such tax increment or an amount of other
legally available funds whose calculation is based on receipt of any portion of
such tax increment within the Expanded Area and (ii) twenty-five percent (25%)
of the Town's one percent (1 %) general sales tax rate, as defined by section
311 .0123(b), generated from taxable sales within the Expanded Area in the
Zone above the sale tax base. (iii) the percentage of tax increment generated
by all real property in the Zone, including the Expanded Area, that each taxing
unit which levies real property taxes in the Zone, other than the Town, has
elected to deposit into the TIF Fund pursuant to and in accordance with an
agreement or agreements with the Town, as authorized by Section 311.013(f)
of the Code. Beginning with the 2014 tax year, each taxing unit which levies
real property taxes on the Reduced Area shall be relieved of any obligation to
deposit the percentage of any tax increment (as defined by Section 311.012(a)
of the Code) produced by the Reduced Area that the taxing entity elected to
dedicate to the TIF Fund (created and established for the Zone pursuant to
Ordinance No. 2014-09) under a participation agreement with the City, as
authorized by Section 311.013(f) of the Code.
SECTION 6. TAX INCREMENT AGREEMENTS.
That, pursuant to Sections 311.008 and 311.013 of the Code, the Town Manager
or any Assistant Town Manager is hereby authorized to execute and deliver, for
and on behalf of the Town, agreements with taxing units that levy real property
taxes in the Zone pursuant to which tax increment of such taxing units will be
deposited into the TIF Fund.
SECTION 7. TERM OF ZONE.
That pursuant to Section 311.017(a)(1) of the Code, the termination date of the
Zone is to be the earlier of (i) December 31, 2046 or (ii) the date on which all
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project costs, tax increment bonds and interest on those bonds have been paid
in full.
SECTION 8. APPROVAL OF UPDATED PLAN.
That the Amended Plan is hereby approved. The Plan, as previously approved
by the Town Council pursuant to Ordinance No. 2014-11, shall continue in
effect except to the extent specifically amended or revised by the Amended
Plan.
SECTION 9. DELIVERY OF UPDATED PLAN TO TAXING ENTITIES.
That the Town Manager is hereby directed to cause a copy of the Amended
Plan to be provided to the governing body of each taxing unit that taxes real
property located in the Zone, as expanded.
SECTION 10. SEVERABILITY.
That if any portion, section or part of a section of this Ordinance is subsequently
declared invalid, inoperative or void for any reason by a court of competent
jurisdiction, the remaining portions, sections or parts of sections of this
Ordinance shall be and remain in full force and effect and shall not in any way
be impaired or affected by such decision, opinion or judgment.
SECTION 11. CUMULATIVE.
That this Ordinance shall be cumulative of all ordinances of the Town, except
where the provisions of this Ordinance are in direct conflict with the provisions
of any such other ordinances, in which case the conflicting provisions of such
other ordinances are hereby repealed.
SECTION 12. EFFECTIVE DATE.
That this Ordinance shall take effect and be in full force and effect from and
after its adoption.
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PASSED AND APPROVED by the Town Council of the Town of Trophy
Club, Texas, this the 22nd day of July , 2014.
____________________________
C. Nick Sanders, Mayor
Town of Trophy Club, Texas
ATTEST:
____________________________________
Tammy Ard, Town Secretary
Town of Trophy Club, Texas
APPROVED AS TO FORM:
__________________________________
Patricia Adams, Town Attorney
Town of Trophy Club, Texas
TIRZ No. 2 Board Page 16 of 21 Wednesday, July 16, 2014
EXHIBIT “A”
AMENDED PROJECT PLAN AND REINVESTMENT ZONE
FINANCING PLAN
TIRZ No. 2 Board Page 17 of 21 Wednesday, July 16, 2014
EXHIBIT “B”
April 2014 TIF Boundary
TIRZ No. 2 Board Page 18 of 21 Wednesday, July 16, 2014
EXHIBIT “C”
Expanded Area
TIRZ No. 2 Board Page 19 of 21 Wednesday, July 16, 2014
EXHIBIT “D”
Reduced Area
TIRZ No. 2 Board Page 20 of 21 Wednesday, July 16, 2014
EXHIBIT “E”
New Boundary
TIRZ No. 2 Board Page 21 of 21 Wednesday, July 16, 2014