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ORD 2014-09TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2014-09 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 TWO, 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 April 21, 2014, 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 April 11, 2014, 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. Designation 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 Two, 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 2of8 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 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, 2046 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 2014, 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 I -IF 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 3of8 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 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 April 21, 2014, 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 12. 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 21" day of April, 2014. OF Y ROAN, y O G ayor, Connie W ite �- w Town of Trophy Club, Texas ATTEST:v9y��RY APPROVED AS TO FORM: To necreta , Tammy Ard Town Attorney, Patricia A. Adams To of Troph Club, Texas Town of Trophy Club, Texas 5 of 8 Exhibit "A" Boundary Description Beginning at the intersection of the northern Right -of -Way (ROW) line of State Highway 114 and the eastern property line of Abstract 823 C. Medlin Survey, Tract 22, thence West along the northern ROW line of State Highway 114, to a point where said line intersects with the western ROW line of Trophy Club Drive, thence North along the western ROW line of Trophy Club Drive, to a point where said line intersects with the western property line of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3, thence Northwest along the western property line of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3,v to a point where said line intersects with the northern boundary of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3, thence Northeastward along the northern property line of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3, to a point where said line intersects with the eastern boundary of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3, thence Southeast along the eastern boundary of Abstract 823 C. Medlin Survey, The Village at Trophy Club, Lot 3, to a point where said line intersects with the western ROW line of Trophy Club Drive, thence Northeastward along the western ROW line of Trophy Club Drive, to a point where said line intersects with the southern property line of Abstract 823 C. Medlin Survey, Municipal Utility District NO. 1 Complex (MUD Complex), Block 1, Lot 1, thence West along the southern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 1, to a point where said line intersects with the southern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 2, thence West along the southern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 2, to a point where said line intersects with the western property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 2, thence North along the western property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 2, to a point where said line intersects with the western property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 3, thence North along the western property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 3, to a point where said line intersects with the northern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 3, thence East along the northern property line of Abstract 823 C. Medlin Survey, MUD Complex, Block 1, Lot 3, to a point where said line intersects with the northern ROW Line of Municipal Drive, thence East along the northern property line of northern ROW Line of Municipal Drive, to a point where said line intersects with the western ROW line of Trophy Club Drive, thence North along the western ROW line of Trophy Club Drive to a point where said line intersects with the projection of the northern property line of Abstract 823 C. Medlin Survey, Tract 1A, thence East along the northern property line of Abstract 823 C. Medlin Survey, Tract 1A, to a point where said line intersects with the eastern property line of Abstract 823 C. Medlin Survey, Tract 1A, thence South along the eastern property line of Abstract 823 C. Medlin Survey, Tract 1A, to a point where said line intersects with the southern property line of Abstract 823 C. Medlin Survey, Tract 1A, thence West along the southern property line of Abstract 823 C. Medlin Survey, Tract 1A to a point where said line intersects with the eastern ROW line of Trophy Club Drive, thence • M South along the eastern ROW line of Trophy Club Drive to a point where said line intersects with the eastern ROW line of Indian Creek Drive, thence Southeastward along the eastern ROW line of Indian Creek Drive to a point where said line intersects with the project ion of the eastern property line of Abstract 823 C. Medlin Survey, Tract 22, thence South along the eastern property line of Abstract 823 C. Medlin Survey, Tract 22 to a point where said line intersects with the northern ROW line of State Highway 114, which is the point of beginning. 7of8 Exhibit "A" Map 8 of 8