HomeMy WebLinkAboutORD 2024-013ORDINANCE NO. 2024-013
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
TWO, CITY OF GRAPEVINE, TEXAS; MAKING
VARIOUS FINDINGS RELATED TO SUCH PLAN;
PROVIDING FOR SEVERABILITY; DECLARING AN
EMERGENCY AND PROVIDING AN EFFECTIVE
DATE
WHEREAS, on December 8, 1998, the City Council of the City of
Grapevine, Texas, pursuant to Chapter 311 of the Texas Tax Code, approved
Ordinance No. 98-140 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 December 15, 1998, the City Council of the City of
Grapevine, Texas, pursuant to Chapter 311 of the Texas Tax Code, approved
Ordinance No. 98-141 approving the 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. 2024-003 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 in Exhibit
"A", be approved by the City Council, and
WHEREAS, all constitutional and statutory prerequisites for the approval of
this ordinance have been met, including but not limited to the Open Meetings Act
and Chapter 211 of the Local Government Code; 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 includes all information required by Sections 311.003(b) and
(c) of the Act.
1.3 That the Plan is feasible and the Plan conforms to the City's master plan.
Section 2. Approval of Plan
That based on the findings set forth in Section 1 of this Ordinance, the Plan
is hereby approved.
Section 3. 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 4. Declaring and Emergency and providing an Effective Date
That 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 inhabitants of the City of Grapevine, Texas,
creates an emergency for the immediate preservation of the public business,
property, health, safety and general welfare of the public which requires that this
ordinance shall become effective from and after the date of its final passage, and
it is accordingly so ordained.
PASSED AND APPROVED by the City Council of the City of Grapevine, Texas,
this the 20th day of February, 2024.
APPROVED:
William D. Tate
Mayor
Ordinance No. 2024-013 2
ATTEST:
GRApF`�y�
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Tara Brooks i ' k
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City Secretary
APPROVED AS TO FORM:
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Matthew C.G. Boyle
City Attorney
Ordinance No. 2024-013
Tax Increment Reinvestment Zone #2
City of Grapevine, Texas
Tax Increment Reinvestment Zone #2, City of Grapevine
On December 8, 1998, the City Council of the City of Grapevine, Texas, pursuant to Chapter 311 of the Texas Tax
Code, approved Ordinance No. 98-140 designating a contiguous geographic area within the City as Reinvestment
Zone Number Two, City of Grapevine, Texas. This update to Attachment One of the previously approved Project
Plan outlines the funding of $51,500,000 in project costs, including costs related to public improvements such
as streets, water and sanitary sewer systems, public parking facilities, as well as costs associated with operating
reinvestment zone project facilities, and economic development grants. The TIRZ will fund these improvements
through the contribution of 100% of the City's ad valorem increment generated within the zone. The table below
includes a number of improvements within Tax Increment Reinvestment Zone #2 that will be financed by in part by
incremental real property tax generated within the TIRZ.
Proposed Project Costs
Street and Intersection Improvements $ 6,500,000
Water and Sanitary Sewer Facilities and Improvements $ 1,000,000
Public Parking Facility $ 7,414,482
Educational Facilities* $ 24,000,000
Operating Reinvestment Zone Project Facilities $ 12,559,768
Administration $ 25,750
TOTAL $ 51,500,000
*GCISD Middle School Debt Service Payment
UPDATE TO "ATTACHMENT ONE" OF THE PROJECT PLAN
FEBRUARY 2024
Chapter 311 of the Texas Tax Code
Sec. 311.002.
(1) "Project costs" means the expenditures made or estimated to be made and monetary obligations
incurred or estimated to be incurred by the municipality or county designating a reinvestment zone that
are listed in the project plan as costs of public works, public improvements, programs, or other projects
benefiting the zone, plus other costs incidental to those expenditures and obligations. "Project costs"
include:
(A) capital costs, including the actual costs of the acquisition and construction of public works, public
improvements, new buildings, structures, and fixtures; the actual costs of the acquisition, demolition,
alteration, remodeling, repair, or reconstruction of existing buildings, structures, and fixtures; the actual
costs of the remediation of conditions that contaminate public or private land or buildings; the actual
costs of the preservation of the facade of a public or private building, the actual costs of the demolition of
public or private buildings; and the actual costs of the acquisition of land and equipment and the clearing
and grading of land,
13% (B) financing costs, including all interest paid to holders of evidences of indebtedness or other
2% obligations issued to pay for project costs and any premium paid over the principal amount of the
14% obligations because of the redemption of the obligations before maturity,
47%
24%
0.05%
100.00 %
The categories listed in the table above outline various public improvements, and are meant to include all projects
eligible under Chapter 311, Section 311.002 of the Texas Tax Code. The costs illustrated in the table above are
estimates and may be revised. Savings from one line item may be applied to a cost increase in another line item.
The $51,500,000 project cost total amount shall not be exceeded without an amendment to the project and
financing plan.
The project costs are anticipated to be incurred over the term of the TIRZ, subject to demand for development driven
by market conditions. It is anticipated that the individual TIRZ project costs will be evaluated on a case -by -case
basis consistent with Chapter 311, Section 311.002, and brought forward to the TIRZ Board and City Council for
consideration.
(C) real property assembly costs;
(D) professional service costs, including those incurred for architectural, planning, engineering, and legal
advice and services;
(E) imputed administrative costs, including reasonable charges for the time spent by employees of the
municipality or county in connection with the implementation of a project plan;
(F) relocation costs;
(G) organizational costs, including the costs of conducting environmental impact studies or other studies,
the cost of publicizing the creation of the zone, and the cost of implementing the project plan for the
zone;
(H) interest before and during construction and for one year after completion of construction, whether or
not capitalized,
(I) the cost of operating the reinvestment zone and project facilities,
(J) the amount of any contributions made by the municipality or county from general revenue for the
implementation of the project plan;
(K) the costs of school buildings, other educational buildings, other educational facilities, or other
buildings owned by or on behalf of a school district, community college district, or other political
subdivision of this state; and
(L) payments made at the discretion of the governing body of the municipality or county that the
governing body finds necessary or convenient to the creation of the zone or to the implementation of the
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TIRZ #2
1
— DAVID PETTIT
Economic Development