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HomeMy WebLinkAboutRES 063008-A - Econ Incentive Rivery Park RESOLUTION NO. 0(-P 300 $-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS REGARDING ECONOMIC DEVELOPMENT INCENTIVES FOR THE SUMMIT AT RIVERY PARK; PROVIDING AN EFFECTIVE DATE; AND DIRECTING CITY STAFF ON IMPLEMENTATION. WHEREAS, Rivery Park Limited Partnership, L.L.P. ("Developer") is the owner of approximately 31.935 acres of land in the Rivery Park Subdivision, Georgetown, Texas ("Developer's Property"); and WHEREAS, the property owned by Developer is adjacent to Rivery Park, a public park owned by the City ("City's Property"); and WHEREAS, on September 25, 2007, the City Council authorized the staff to start the process to create a Tax Increment Reinvestment Zone over approximately 67 acres of land, said land being the property owned by Developer within the Rivery Park Subdivision and the Rivery Park (collectively referred to herein as the "TIRZ Property") and to make improvements to the public parkland adjacent thereto; and WHEREAS, after holding the requisite public hearings and notifying the other taxing authorities, on December 11, 2007 the City Council approved an ordinance creating a Tax Increment Reinvestment Zone on the Property (the "Zone"); WHEREAS, the maximum duration of the zone is until December 31, 2031, the Tax Increment Base year is January 1, 2007, and the amount of the tax increment for a year is 100% of the property taxes levied and collected by the City for that year on the Captured Appraised Value of real property taxable by the City, with the Captured Appraised Value being the total appraised value of all real property in the Zone for that year, less the Tax Increment Base, as such terms are used in Chapter 311 of the Texas Tax Code; and WHEREAS, on December 11, 2007 the City Council approved an ordinance rezoning the Developer's Property as a Planned Unit Development; and WHEREAS, the Developer has represented to the City that it will construct a project on the Developer's Property as follows: office or office condominium use, with said office buildings or condominium allowed to be converted to a non-drive through restaurant site and/or a parking garage; and for mixed commercial use, including one or more restaurant sites, one or more hotels, a conference center, and one or more office buildings, together with surface or garage parking; and WHEREAS, the Developer has also represented to the City that it will construct public improvements on the City Property consisting of such amenities as (i) water features and artwork, (ii) pedestrian paths, (iii) relocation of the Park's public access road, (iv) Resolution No. O1 P3OO8- A Resolution of Intent for The Summit at Rivery Park Pagel of 5 additional bathroom facilities, (v) an amphitheatre, (vi) landscaping and/or landscaping refinements, (vii) other related necessary or convenient public improvements; and WHEREAS, the Developer and the City (collectively, the "Parties") intend to negotiate in good faith a definitive agreement relating to (i) the construction, ownership, operation and management of the Project and participation by the City in the costs of the Project and (ii) the rights and obligations of the Parties in connection therewith (the "Definitive Agreement") on the terms set forth in this Resolution. . NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS HEREBY RESOLVES AS FOLLOWS: 1. That the foregoing recitals are true and correct and are incorporated herein by reference as if set forth in full. 2. That the Developer has made the following representations to the City on which the City has relied in creating the Zone and enacting this Resolution: A. Developer shall construct the following improvements (collectively "the Project") on the Developer's Property and the City's Property: 1. On Zone A on Developer's Property (9.63 acres of land): (i) public amenities and (ii) park access road relocation, 2. On Zone B on Developer's Property (22.31 acres of land): (i) a full service hotel with a minimum of 187 rooms, (ii) a conference/performing arts center capable of seating banquet style between 1,500 to 4,500 people, designed and constructed in a manner to accommodate multiple small scale events, (iii) amenity areas and (iv) pedestrian trails for park access, and 3. On City Property (Rivery Park): (i) water features and artwork, (ii) pedestrian paths, (iii) relocation of the Park's public access road, (iv) additional and/or upgraded bathroom facilities, (v) an amphitheatre, (vi) landscaping and/or landscaping refinements, (vii) other related necessary or convenient public improvements (the "Park Improvements"). A graphic conceptual representation of the Project is attached hereto as Exhibit A. A depiction of the areas designated as Zone A and Zone B is attached hereto as Exhibit B. A summary of the conceptual improvements planned and related costs estimates for the Project is attached hereto as Exhibit C. B. Developer shall commence efforts to obtain financing and related funding for the proposed development on or about July 28, 2008 and complete said efforts no later than March 31, 2009. C. Developer shall commence construction of the Park Improvements on the City Property on or about March 1, 2009, but no later than June 30, 2009, and the Park Improvements shall be substantially completed by July 1, 2010, but no later than October 1, 2011. Notwithstanding anything to the contrary in this Resolution No. 0to 3 0 09- A Resolution of Intent for The Summit at Rivery Park Page 2 of 5 resolution, public vehicular access to the City Property shall be maintained throughout the construction process. D. Developer shall commence construction of Zone B improvements on the Developer's Property on or before March 1, 2009, but no later than June 30, 2009, and the hotel and conference/performing arts center shall be substantially completed by July 1, 2010, but no later than October 1, 2011. E. Developer shall commence construction of the Zone A improvements on the Developer's Property on or before October 1, 2009, but no later than March 1, 2010, and the work shall be substantially completed by July 1, 2012. F. Other amenities and improvements to the Developer's property in Zone A and Zone B shall be in keeping with the provisions of the PUD Ordinance with the City, passed and approved on December 11, 2007, as Ordinance No. 2007-91. 3. That in exchange for the Developer's commitment to construct the Project on the Developer's Property and the City's Property as described herein, the City will agree to: A. Issue Tax Increment Financing Bonds ("TIF Bonds") in one or more series in an original principal amount determined by the City based on a reasonable determination of cash flow available in the Zone to service the TIF Bonds, but in no event shall the aggregate amount of proceeds received by the Developer from the issuance of such TIF Bonds exceed $25 Million (the "Public Participation Amount"). The TIF Bonds will be secured solely by the City tax increments (as such term is used in Section 311.012 of the Texas Tax Code) which are generated in the Zone (the "Increment"). Any TIF Bonds will be issued, to the extent permitted under Federal tax law, as tax-exempt obligations described under section 103 of the Internal Revenue Code of 1986, as amended (the "IRC"), and otherwise as obligations not described in said section 103 of the IRC. The Parties understand that property taxes collected by the school district and other special districts will not be utilized to pay off the TIF Bonds. The Parties acknowledge that Williamson County is considering participation in the Zone, and that if it does so then its increment will be utilized to pay off the TIF Bonds in accordance with the terms of the County agreement pertaining to same; but the Parties recognize that the County may not agree to participate in the Zone. B. Pay to the Developer, on an annual basis, that portion of the Increment that is greater than the sum of (1) the amount needed to pay the annual principal and interest due on the TIF Bonds; and (2) the amount needed on an annual basis to maintain the Public Facilities (the "Annual TIF Increment Payment"), but in no event shall the total of (i) the aggregate amount of proceeds received by the Developer from the issuance of TIF Bonds and (ii) the aggregate amount of all Annual TIF Increment Payments be more than the Public Participation Amount. Annual TIF Increment Payments shall be paid, if paid, solely from, and to the extent generated by, the annual real property taxes levied and Resolution No. 0 (a 5 0 0 8- A Resolution of Intent for The Summit at Rivery Park Page 3 of 5 collected by the City from taxable property in the Zone attributable to the City's Increment and from no other sources. C. The City agrees that all taxes collected for repayment of the TIF Bonds shall be transferred to a Trustee (to be named in a Bond Indenture) within thirty (30) days after said taxes are collected by the City. The Bond Indenture will provide that the Trustee will then utilize said funds to make payments on the TIF Bonds on at least a semi-annual basis. The City shall not have personal liability for payment of the TIF Bonds independent of the taxes attributable to the City's Increment pledged to satisfy the TIF Bonds. D. The Public Participation Amount shall be paid, if paid, solely from the proceeds of TIF Bonds and Annual TIF Increment Payments and from no other sources. 4. The Definitive Agreement will set forth a formula pursuant to which the Public Participation Amount may be reduced, from time to time, based upon Developer's failure to meet the goals established by the Definitive Agreement. 5. The City shall acquire rights from Developer to those parts of the Project that are for use by the general public (the "Public Facilities"). Such acquisition shall be accomplished through a contract with Developer (the "Public Facility Contract"). The Public Facilities will be owned, operated and maintained by the City or designee of the City. It is anticipated that the Public Facilities will be exempt from ad valorem taxation by virtue of ownership by the City. The Public Participation Amount shall be reduced by the amount of all ad valorem taxes that would have been payable (but for City ownership) to all taxing jurisdictions during the period of City ownership, including without limitation those that would have been payable to the City, County, the school district and the special district. To the extent that it is determined that the Public Facilities are subject to ad valorem taxation, Developer will be liable for the payment of such taxes and the Public Participation Amount shall not be reduced by these amounts. 6. Developer and the City will enter into a management agreement ("Management Agreement") pursuant to the terms of which Developer will assume responsibility for maintenance, operation and improvement of the Public Facilities. Any fees and expenses payable by the City under the Management Agreement shall be payable out of the Increment. To the extent tax-exempt bonds are issued to finance Public Facilities, the Parties acknowledge that any such Management Agreement must comply with the qualified management contract guidelines set forth in Revenue Procedure 97-13 released by the Internal Revenue Service. 7. This Resolution is not intended to create a binding obligation on the part of the City. The Definitive Agreement shall reflect the final contract between the Parties and said Agreement shall conform to all applicable requirements of state and federal law. The sole purpose of this Resolution is to provide a framework for further negotiations between the Parties. Resolution No. 0(o 5 0 U 8- A Resolution of Intent for The Summit at Rivery Park F 1; Page 4 of 5 8. This Resolution shall become effective immediately upon its adoption. On its adoption, the City Manager, and his designees, the City Attorney and the City's bond counsel and financial advisors shall be authorized to commence negotiations with the Developer in the Definitive Agreement and the Management Agreement consistent with the terms of this Resolution, and shall bring back said agreements to the City Council for final approval. 7A RESOLVED to be effective this day of , 2008. CITY OF GEORGETOWN, TEXAS By: Geo ge G. Garver, Mayor ATTEST: By. Sandra D. Lee, City Secre ary APPROVED AS TO FORM: y• Patricia E. Carls, City Attorney Resolution No. 0el,200<f-4 Resolution of Intent for The Summit at Rivery Park Page 5 of 5 X 't J .-R •ry W x a a a w ' a Q THE i ~ i N t r ~i 4 0 s © l~w 30C>8> i / i ! J Ft I ~ j f dvE~f.'"wa - , f f f Ir j , , li ~ nW ; ff I It i f 1 //r 1 t / ( t I f ~ I ` a t t T/ f 1 I I i i / i t t l 1 Ct YMX Yd 1f7M1'~X3~ I` ~f tltl ~ ~ ttf ~ o ro (D 11 tll H i Fl t 0 (D t i K t------. i 1 t i h7 t t ti I ~ A (D I t I FS f t t `~g ~ I j I t ~S f t ~ ~ 7 1`7 W Z ' m f 1 n D ~ t t t 1 I- I It t r ! { l l 1 ' l q F~~ - r y t~ ~l k` l 1 / ~ r THE SUMMIT AT RIVERY PARK AUSTIN CIVIL s PLANNED UNIT DEVELOPMENT ENGINEERING INC. ' RIVERY BLVD. ~tq BoUtB u K., 8f. u GEORGETOWN. TX 7&626 ~ir e Res. D(o 3O ©8 A }Lh► b I 5 The Summit @ Rivery Park Summary of Proposed Conceptual TIF Capital Improvements Estimated Capital TIF Improvement Expenditures by Calendar Year Estimated Costs 1. Conference/Performing Arts Center $20,000,000 2. Site Improvements for Zones A & B - Public Art, Water Features, Historical Reflections 4,500,000 3. Park Road Relocation 1,500,000 4. Park Improvements Total a. Pond Enhancements $550,000 b. Riparian Restoration 35,000 c. Trails 450,000 d. Amphitheatre 1,125,000 e. Restroom / Concession 50,000 f. Playground 100,000 g. Splash Pad 150,000 h. Historical Homestead 20,000 i. Disc Golf Course 25,000 j. Other Elements 1,000, 000 (includes irrigation, drinking fountains, water feature, additional parking, signage, and outdoor furnishings) Total: $29,505,000 d (o 3 0 0 g_ A Exhibit C