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Home My WebLink AboutItem 09 - TIRZ No. 1MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER MEETING DATE: MARCH 5, 2024 SUBJECT: REIMBURSEMENT AGREEMENT FOR TAX INCREMENT REINVESTMENT ZONE NUMBER ONE RECOMMENDATION: City Council to consider approval of a reimbursement agreement between Grapevine-Colleyville Independent School District, City of Grapevine, and the Board of Directors of Tax Increment Reinvestment Zone Number One, and take any necessary action. FUNDING SOURCE: This actions does not require funding. BACKGROUND: On February 20, 2024, the TIF 1 Project and Financing Plan was amended to allow for expenses related to Operating Reinvestment Zone Project Facilities. The agreement for consideration is between GCISD, the TIF 1 Board, and the City of Grapevine in accordance with the amended Project and Financing Plan. The agreement authorizes eligible operating expenses to be reimbursed, estimated to be $2,718,806, for costs related to Operating Reinvestment Zone Project Facilities (Mustang -Panther Stadium). Once approved, GCISD will annually invoice the City of Grapevine (TIF 1) for operating expenses at Mustang -Panther Stadium until all GCISD TIF 1 funds are expended. Staff recommends approval. REIMBURSEMENT AGREEMENT BETWEEN GRAPEVINE COLLEYVILLE INDEPENDENT SCHOOL DISTRICT, CITY OF GRAPEVINE AND THE BOARD OF DIRECTORS OF TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF GRAPEVINE, TEXAS THIS AGREEMENT (the "Agreement"), effective as of March 5, 2024, is by and between, GRAPEVINE COLLEYVILLE INDEPENDENT SCHOOL DISTRICT (the "GCISD"), the CITY OF GRAPEVINE, TEXAS, a Texas municipal corporation (the "City"), and the BOARD OF DIRECTORS OF TAX INCREMENT REINVESTMENT ZONE NUMBER ONE (the "Zone Board"). WITNESSETH: WHEREAS, on February 20, 1996, the City Council of the City of Grapevine, Texas, pursuant to Chapter 311 of the Texas Tax Code, approved Ordinance No. 96-07 designating a contiguous geographic area within the City as Reinvestment Zone Number One, City of Grapevine, Texas (the "Zone") and established a Board of Directors for the Zone (the "Board of Directors") to promote development or redevelopment in the Zone; and WHEREAS, on October 6, 2009, City Council of the City of Grapevine, Texas, pursuant to Chapter 311 of the Texas Tax Code, approved Ordinance No. 2009-43 approving the amended Project and Financing Plan for the Zone; and WHEREAS, as authorized by Chapter 311 of the Texas Tax Code (the "Act") and pursuant to Ordinance No. 2015- 074 adopted by the City Council of the City of Grapevine, Texas (the "City") on December 15, 2015, the City amended the Zone to expand the boundaries and extend the term; and WHEREAS, on February 2, 2016, the City Council of the City of Grapevine, Texas, pursuant to Chapter 311 of the Texas Tax Code, approved Ordinance No. 2016-010 approving the amended Project and Financing Plan for the Zone to include up to an additional $30,000,000 in GCISD projects (the "2016 Projects"); and WHEREAS, the 2016 Projects include the renovation of the GCISD stadium and the installation, maintenance and/or repair of a fiber optic cable network to connect City and GCISD facilities; and WHEREAS, the City and GCISD previously entered into the Agreement to Participate in Reinvestment Zone Number One effective August 1, 1996 (the "Agreement"); and WHEREAS, the City and GCISD have entered into that First Amendment to the Agreement to provide for the addition of the 2016 Projects; and WHEREAS, the City and GCISD amended the Agreement to include up to $30,000,000 to be used by GCISD to acquire, construct, and/or reconstruct educational facilities and for all project related costs; and WHEREAS, as authorized by Chapter 311 of the Texas Tax Code (the "Act") and pursuant to Ordinance No. 2024-002 adopted by the City Council of the City of Grapevine, Texas (the "City") on January 16, 2024, the City amended the Zone to amend the composition and powers of the Board of Directors; and WHEREAS, as authorized by Section 311.011(e), and 311.008, of the Act, on February 20, 2024, the Board recommended that the amended Plan be approved by the City Council; and WHEREAS, on February 20, 2024, the City Council of the City of Grapevine, Texas, pursuant to Chapter 311 of the Texas Tax Code, approved Ordinance No. 2024-012 approving the amended Project and Financing Plan for the Zone to include costs related to Operating Reinvestment Zone Project Facilities; and WHEREAS, all constitutional, statutory and legal prerequisites for the approval of this Agreement have been met, including but not limited to the Open Meetings Act. NOW THEREFORE, in consideration of the mutual covenants and obligations herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: Section 1. Zone Participation. A. Per Section 311.002 (I) of the Texas Tax Code the TIRZ Board hereby authorizes the expenditure of funds estimated to be $2,718,806 from the Amended Project and Financing Plan for costs related to Operating Reinvestment Zone Project Facilities. Section 2. GCISD's Obligations. A. GCISD agrees to submit invoices for costs related to Operating Reinvestment Zone Project Facilities to the City for review and approval. Section 3. Term. The term of this Agreement shall begin upon the execution hereof by both parties and end upon the complete performance of all obligations and conditions precedent by parties to this Agreement. Section 4. Events of Default. (2) A. A default shall exist if any party fails to perform or observe any material covenant contained in this Agreement. The non -defaulting parties shall immediately notify the defaulting party in writing upon becoming aware of any change in the existence of any condition or event which would constitute a default or, with the giving of notice or passage of time, or both, would constitute a default under this Agreement. Such notice shall specify the nature and the period of existence thereof and what action, if any, the non -defaulting parties require or propose to require with respect to curing the default. Section 5. Remedies for Default A. If a default shall occur and continue, after thirty (30) day's notice to cure default, the non -defaulting parties may, at their option, pursue any and all remedies they may be entitled to, at law or in equity, in accordance with Texas law, without the necessity of further notice to or demand upon the defaulting party. The Zone Board shall not, however, pursue remedies for as long as the GCISD proceeds in good faith and with due diligence to remedy and correct the default, provided that the GCISD has commenced to cure such default within 30 days following notice. Section 6. Venue and Governing Law. This Agreement is performable in Tarrant County, Texas, and venue of any action arising out of this Agreement shall be exclusively in Tarrant County. This Agreement shall be governed and construed in accordance with the laws of the State of Texas. Section 7. Notices. Any notice required by this Agreement shall be deemed to be properly served if deposited in the U.S. mail by certified letter, return receipt requested, addressed to the recipient at the recipient's address shown below, subject to the right of the parties to designate a different address by notice given in the manner just described. If intended for the Zone Board, to: The City of Grapevine, Texas Grapevine, Texas Attn: Facsimile: If intended for GCISD, to: Grapevine Colleyville Independent School District (3) Attn: Facsimile: With a copy to: Attn: Facsimile: Section 9. Applicable Laws. This Agreement is made subject to the provisions of the Charter and ordinances of the City, as amended, and all applicable State and Federal laws. Section 10. Le2al Construction. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision thereof and this Agreement shall be considered as if such invalid, illegal, or unenforceable provision had never been contained in this Agreement. Section 11. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. Section 12. Captions. The captions to the various clauses of this Agreement are for informational purposes only and shall not alter the substance of the terms and conditions of this Agreement. Section 13. Successors and Assigns. The terms and conditions of this Agreement are binding upon the successors and assigns of all parties hereto. (4) Section 14. Entire Agreement. This Agreement embodies the complete agreement of the parties hereto, superseding all oral or written previous and contemporary agreements between the parties and relating to matters in this Agreement, and except as otherwise provided herein cannot be modified without written agreement of the parties to be attached to and made a part of this Agreement. AGREED TO AND ACCEPTED THIS day of GRAPEVINE COLLEYVILLE INDEPENDENT SCHOOL DISTRICT By: Name: Title: The Board of Directors of Reinvestment Zone Number One, City of Grapevine, Texas, hereby acknowledges and agrees to the terms and conditions of the Agreement on this day of ATTEST: By: Name: Title: REINVESTMENT ZONE NUMBER ONE CITY OF GRAPEVINE, TEXAS By: Name: Title: (5)