ORD 2013-23TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 2013-23
AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS DESIGNATING
A CERTAIN CONTIGUOUS GEOGRAPHIC AREA IN THE TOWN OF
TROPHY CLUB AS " REINVESTMENT ZONE NUMBER ONE, TOWN OF
TROPHY CLUB, TEXAS"; CREATING A BOARD OF DIRECTORS FOR THE
ZONE; PROVIDING THE EFFECTIVE AND TERMINATION DATES FOR THE
ZONE; ESTABLISHING A TAX INCREMENT FUND FOR THE ZONE;
CONTAINING OTHER MATTERS RELATED TO THE ZONE; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Town Council desires to promote the development of a certain contiguous
geographic area in the Town, which is more specifically described in Exhibit "A" of this Ordinance
(the "Zone"), through the creation of a new reinvestment zone as authorized by and in accordance with
the Tax Increment Financing Act, Texas Tax Code, Chapter 311; and
WHEREAS, the Town has prepared a preliminary financing plan for the Zone, as required by
Texas Tax Code, Section 311.003(b); and
WHEREAS, on August 19, 2013, the Town Council held a public hearing regarding the
creation of the Zone and its benefits to the Town and to property in the Zone and afforded a reasonable
opportunity for (i) all interested persons to speak for or against the creation of the Zone, its boundaries
or the concept of tax increment financing and (ii) owners of real property in the Zone to protest
inclusion of their property in the Zone, as required by Texas Tax Code, Sections 311.003(c) and (d);
and
WHEREAS, no owner of real property in the proposed zone protested the inclusion of their
property in the proposed zone; and
WHEREAS, notice of the public hearing was published in a newspaper of general circulation in
the Town on August 10, 2013, which satisfies the requirement of Texas Tax Code, Section 311.003(c)
that publication of the notice occur not later than the seventh day before the date of the public hearing;
and
WHEREAS, the Town has provided all information and made all presentations, given all
notices and done all other actions required by Chapter 311, Texas Tax Code, or other law as a condition
to the creation of the proposed zone;
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN
OF TROPHY CLUB, 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.
(b) That the Town 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 Town.
(c) Area within the Zone meets the criteria for designation of a reinvestment zone and
satisfies the requirement of Section 311.005, Texas Tax Code, to -wit: (A) includes land that
substantially arrests or impairs the sound growth of the Town, retards the provision of housing
accommodations, or constitutes an economic or social liability and be a menace to the public health,
safety, morals, or welfare in its present condition and use because of the presence of: (i) the
predominance of defective or inadequate sidewalk or street layout; (ii) faulty lot layout in relation to
size, adequacy, accessibility, or usefulness; and (iii) the deterioration of site or other improvements; and
(B) is predominantly open or undeveloped and, because of obsolete platting, deterioration of structures
or site improvements, or other factors, substantially impairs or arrests the sound growth of the
municipality or county.
(d) That the Town Council, pursuant to the requirements of Chapter 311, Texas Tax Code,
further finds and declares:
(1) That the proposed zone is a contiguous geographic area located wholly within the
corporate limits of the Town of Trophy Club;
(2) That the total appraised value of taxable real property in the proposed zone and in existing
reinvestment zones does not exceed fifty percent of the total appraised value of taxable
real property in the Town;
(3) That thirty percent or less of the property in the Zone, excluding property dedicated to
public use, is used for residential purposes (defined as any property occupied by a house
have fewer than five living units); and
(4) That the development or redevelopment of the property in the proposed zone will not
occur solely through private investment in the reasonably foreseeable future.
SECTION 2. Deshmation of Zone.
That the Town Council hereby designates the Zone described in the boundary description and
depicted in the map, both attached hereto as Exhibit "A" and made a part of this Ordinance for all
purposes, as a reinvestment zone pursuant to and in accordance with Chapter 311, Texas Tax Code.
This reinvestment zone shall be known as "Reinvestment Zone Number One, Town of Trophy Club,
Texas."
SECTION 3. Zone Board of Directors.
That a board of directors for the Zone ("Board") is hereby created. The Board shall consist of
five (5) members who shall serve for staggered terms of two (2) years each with two (2) members
having an initial term of one (1) year each. Of these five (5) members, each taxing unit other than the
Town that contributes incremental taxes to the TIF Fund may, but is not required to, appoint one (1)
member to the Board. After each taxing unit other than the Town designates to the Town either the
name of the member that the taxing unit wishes to appoint or the fact that the taxing unit wishes to
waive its right to appoint a member, the Town Council shall appoint whatever number of members are
necessary to fill the remaining positions on the Board. The Town Council shall appoint a chairman of
the Board and the Board may elect a vice chairman and such other officers as the Board sees fit.
The Board shall make recommendations to the Town Council concerning the administration,
management and operation of the Zone. The Board shall prepare and adopt a project plan and a
reinvestment zone financing plan for the Zone and submit such plans to the Town Council for its
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approval. The Board shall perform all duties imposed upon it by Chapter 311, Texas Tax Code and all
other applicable laws. Notwithstanding anything to the contrary herein, the Board shall not be
authorized to (i) issue bonds; (ii) impose taxes or fees; (iii) exercise the power of eminent domain; or
(iv) give final approval to the Zone's project plan and financing plan.
SECTION 4. Term of Zone.
That the Zone shall take effect upon the adoption of this Ordinance and terminate on the earlier
of (i) December 31, 2034 or an earlier termination date designated by an ordinance adopted after the
effective date of this Ordinance or (ii) the date on which all project costs, tax increment bonds and
interest on those bonds have been paid in full.
SECTION 5. Determination of Tax Increment Base.
That the tax increment base for the Zone, as defined by Section 311.012(c), Texas Tax Code,
shall be the total appraised value of all real property in the Zone taxable by a taxing unit for the year
2013, which is the year in which the Zone was designated as a reinvestment zone.
SECTION 6. Tax Increment Fund.
That a tax increment fund for the Zone (the "TIF Fund") is hereby established. The TIF Fund
may be divided into additional accounts and sub -accounts authorized by resolution or ordinance of the
Town Council. The TIF Fund shall consist of (i) the percentage of the tax increment, as defined by
Section 311.012(a), Texas Tax Code, that each taxing unit which levies real property taxes in the Zone,
other than the Town, has elected to dedicate to the TIF Fund under an agreement with the Town
authorized by Section 311.013(f), Texas Tax Code, plus (ii) 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 and (iii) 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 Zone above the sale tax base.
The TIF Fund shall be maintained in an account at the depository bank of the Town and shall be
secured in the manner prescribed by law for Texas cities. In addition, all revenues from (i) the sale of
any obligations hereafter issued by the Town and secured in whole or in part from the tax increments;
(ii) the sale of any property acquired as part of a tax increment financing plan adopted by the Board;
and (iii) other revenues dedicated to and used in the Zone shall be deposited into the TIF Fund. Prior to
the termination of the Zone, money shall be disbursed from the Tax Increment Fund only to pay project
costs, as defined by the Texas Tax Code, for the Zone, to satisfy the claims of holders of tax increments
bonds or notes issued for the Zone, or to pay obligations incurred pursuant to agreements entered into
to implement the project plan and reinvestment zone financing plan and achieve their purpose pursuant
to Section 311.010(b), Texas Tax Code.
SECTION 7. Tax Increment Agreements.
That, pursuant to Sections 311.008 and 311.013, Texas Tax Code, the Mayor and Town
Attorney are hereby authorized to execute and deliver, for and on behalf of the Town, tax increment
agreements with taxing units that levy real property taxes in the Zone.
SECTION 8. Severability
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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 9. 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 Town Council at which this Ordinance was adopted was posted
at a place convenient and readily accessible at all times to the general public at the Town Hall of the
Town for the time required by law preceding its meeting, as required by the Open Meetings Law, Texas
Government Code, Chapter. 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 Town Council further ratifies, approves and confirms such written notice and
the contents and posting thereof.
SECTION 10. Notices.
The contents of the notice of the public hearing, which hearing was held before the Town
Council on August 19, 2013, and the publication of said notice, are hereby ratified, approved and
confirmed.
SECTION 11, Engrossment and Enrollment
The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance
in accordance with the Town Charter.
SECTION 11. Effective Date.
That this Ordinance shall take effect and be in full force and effect from and after its adoption.
PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this the 19th day of August,
2013.
yor, Connie White
Town of Trophy Club, Texas
ATTEST:
Town Secretary, Arniuka a
Town of Trophy Club, Texas
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APPROVED AS TO FORM:
Town Attorney, Patricia A. Adams
Town of Trophy Club, Texas
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Exhibit "A"
Boundary Description
Beginning at the intersection of the southern boundary of the Town of Trophy Club City Limits and the
western property line of J Henry Survey A-742, Tract 1 E, thence
North along the western property line of J Henry Survey A-742, Tract 1 E to a point where said line
intersects with the northern property line of J Henry Survey A-742, Tract 1 E, thence
East along the northern property line of J Henry Survey A-742, Tract I E to a point where said line
intersects with the western property line of J Henry Survey A-742, Tract 3R2, thence
Northwestward along the property line of J Henry Survey A-742, Tract 3R2 to a point where said line
intersects with the western ROW line of Trophy Wood Drive, thence
Northward along the western ROW line of Trophy Wood Drive to a point where the projection of said
line intersects with the northern ROW line of Indian Creek Drive, thence
East along the northern ROW line of Indian Creek Drive to a point where said line intersects with the
projection of the eastern ROW line of Trophy Wood Drive, thence
South along the eastern ROW line of Trophy Wood Drive to a point where said line intersects with the
northern property line of J Henry Survey A-742, Trophy Wood Business Center, Block B lot 4, thence
East along the northern property line of J Henry Survey A-742, Trophy Wood Business Center, Block
B lot 4 to a point where said line intersects with the western ROW line of TW King Road, thence
South along the western ROW line of TW King Road to a point where said line intersects with the
southern ROW line of Plaza Drive, thence
West along the southern ROW line of Plaza Drive to a point where said line intersects with the western
property line of J Henry Survey A-742, Trophy Wood Business Center, Block B lot 1R, thence
Southward along the western property line of J Henry Survey A-742, Trophy Wood Business Center,
Block B lot 1 R to a point where said line intersects with the southern boundary of the Town of Trophy
Club City Limits, thence
Westward along the southern boundary of the Town of Trophy Club City limits to a point where said
line intersects with the western property line of J Henry Survey A-742, Tract 1 E, which is the point of
beginning.
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Exhibit "A"
Map
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