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HomeMy WebLinkAboutItem 03 - Tax Increment Financing TE MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER n_ MEETING DATE: OCTOBER 6, 2009 SUBJECT: CITY COUNCIL PUBLIC HEARING —TAX INCREMENT FINANCING ZONE NUMBER ONE PROJECT AND FINANCIAL PLAN RECOMMENDATION: City Council to conduct a Public Hearing relative to proposed amendments to the Tax Increment Financing Zone Number One Project and Financial Plan, consider an ordinance amending the Project and Financing Plan and take any necessary action. BACKGROUND: This Public Hearing is to receive comments openly on the proposed addition of a 380 Grants category for the Project and Financial Plan of the Tax Increment Financing Zone INumber One. The TIF Board met on September 8, 2009 and approved the 380 Category. The Tax Increment Zone Number One has provided the funding of public infrastructure within the zone as delineated by the original Project and Financing Plan. Sufficient funds are available to reallocate the City of Grapevine contributions to the fund which would allow the city approval of the ordinance in order to provide economic incentives within the Zone. Additional economic activity within the Zone will add value to the entire taxing jurisdiction rolls. The ordinance officially amends the plan. Staff recommends approval. L R:\AGENDA\10-06-09\Public Hearing TIF#1 Amendments.doc . / ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS APPROVING AN AMENDED PROJECT AND FINANCING PLAN FOR TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF GRAPEVINE, TEXAS; MAKING VARIOUS FINDINGS RELATED TO SUCH AMENDED PLAN; PROVIDING FOR SEVERABILITY; DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE WHEREAS, as authorized by Chapter 311 of the Texas Tax Code (the "Act") and pursuant to Ordinance No. 96-38, adopted by the City Council (the "City") on June 4, 1996, the City created Tax Increment Reinvestment Zone Number One, City of Grapevine, Texas, (the "Zone"); and WHEREAS, as authorized by Section 311.011(e) of the Act and pursuant to Ordinance No. 96-55, adopted by the City Council of the City on August 1, 1996, the City amended the Project and Financing Plan for the Zone; and WHEREAS, as authorized by Section 311.011(e) of the Act, on September 8, 2009, and pursuant to Board Resolution TIF #1 2009-01, the Board amended the Plan to establish a TIF Grants Category, as depicted on Exhibit "A", and recommended that the Plan, as amended, be approved by the City Council; and WHEREAS, all statutory and constitutional prerequisites for the adoption of this Ordinance have been met, including, but not limited to the Texas Open Meetings Act; and WHEREAS, the City Council deems the adoption of this Ordinance to be in the best interests of the health, safety, and welfare of the public: NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. Findings That the City Council hereby makes the following findings of fact: 1.1 The statements and facts set forth in the recitals of this Ordinance are true and correct. 1.2 That the Plan, as amended, includes all information required by Sections 311.011(b) and (c) of the Act. 1.3 That the Plan, as amended, is feasible and the amended and restated project plan conforms to the City's master plan. Section 2. Approval of amended plan That based on the findings set forth in Section 1 of this Ordinance, the Plan, is hereby amended by the addition of the underlined language in Exhibit "A". Section 3. Delivery of amended plans to taxing entities. That the City of Grapevine, is hereby directed to provide a copy of the Plan, as amended, to the governing body of each taxing unit that taxes real property located in the zone. Section 4. That the terms and provisions of this ordinance shall be deemed to be severable, and that if the validity of any section, subsection, word, sentence or phrase shall be held to be invalid, it shall not affect the remaining part of this ordinance. Section 5. The fact that the present ordinances and regulations of the City of Grapevine, Texas are inadequate to properly safeguard the health, safety, morals, peace and general welfare of the public creates an emergency which requires that this ordinance become effective from and after the date of its passage, and it is accordingly so ordained. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 6th day of October, 2009. APPROVED: ATTEST: ORD. NO. 2 Approved as to Form: Amok ORD. NO. 2 EXHIBIT A "Amendment to Tax Increment Project and Financing Plan" Two proposed amendments include: 1. Amend the Project Plan Establish a TIF Grants Category pursuant to Texas Tax Code, Section 311.010, providing powers under Chapter 380, Local Government Code; and Limit payments of project costs pursuant to Texas Tax Code, Section 311.002 (1) (K) to the total contributions made by the City to the TIF Fund. 2. Amend the Financing Plan Reflect the actual amount of bond indebtedness for public improvements of $28,195,000 with a total principal and interest of$48,508,259. Provide estimated TIF Grants costs of $14,295,661 based upon current value of improvements. C