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Home My WebLink AboutWolf_Lakes_TIRZ_Board_Agenda_8_4_2022_4359Notice of Meeting for the Wolf L akes T I RZ B oard of the City of Georgetown August 4, 2022 at 10:30 AM at Georgetown City Hall Community Room, 808 Martin L uther K ing Jr. St. T he C ity of G eorgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require as s is tance in partic ipating at a public meeting due to a disability, as defined under the ADA, reas onable as s is tance, adaptations , or ac commodations will be provided upon request. P leas e c ontact the C ity S ec retary's O ffic e, at leas t three (3) days prior to the sc heduled meeting date, at (512) 930-3652 or C ity Hall at 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626 for additional information; T T Y users route through R elay Texas at 711. L egislativ e Regular Agenda A C ons ideration and possible approval of the minutes from the Augus t 5, 2021 Wolf Lake Tax Inc rement R einvestment Zone (T I R Z) Board Meeting – Mayor Josh S c hroeder, C hair B P resentation of the annual financial report for the Wolf Lake Tax Inc rement R einvestment Zone – Nathan P arras, As s is tant F inance Director Adjournment Ce rtificate of Posting I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that this Notic e of Meeting was posted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a plac e readily acc es s ible to the general public as required by law, on the _____ day of _________________, 2022, at __________, and remained s o posted for at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting. __________________________________ R obyn Dens more, C ity S ec retary Page 1 of 21 City of Georgetown, Texas Downtown T I RZ Board August 4, 2022 S UB J E C T: C onsideration and pos s ible approval of the minutes from the August 5, 2021 Wolf Lake Tax Increment R einves tment Zone (T I R Z) Board Meeting – Mayor Jos h S chroeder, C hair IT E M S UMMARY: F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: S haron P arker AT TAC H ME N T S: Description Type Minutes Backup Material Page 2 of 21 Minutes Wolf Lakes Tax Increment Investment Zone (TIRZ) Board City of Georgetown, Texas August 5, 2021 at 1:30 PM The Wolf Lakes TIRZ Meets annually, this is a draft of the minutes from the 2021 annual meeting. These minutes will be reviewed for approval at the next annual meeting. Page 3 of 21 Minutes Wolf Lakes Tax Increment Investment Zone (TIRZ) Board City of Georgetown, Texas August 5, 2021 at 1:30 PM The Wolf Lake Tax Increment Investment Zone (TIRZ) Board met on August 5, 2021 at 1:30 PM at City Hall, 808 Martin Luther King Jr Street, Georgetown, Texas Board Members Present: Board Members Absent: Mayor Josh Schroeder, Chair Kevin Cummins, GEDCO Board David Morgan, City Manager Sofia Nelson, Planning Director Val Covey, Commissioner Prescient 3 Shawn Hood, City Council District 2 City Staff Present: Laurie Brewer, Assistant City Manager Leigh Wallace, Finance Director Elaine Wilson, Assistant Finance Director Sharon Parker, Board Liaison Others present: Regular Agenda: Mayor Josh Schroeder Called the meeting to order at 1:30 p.m. A. Consideration and possible action to approve the minutes from the July 31, 2020 Wolf Lake Tax Increment Reinvestment Zone (TIRZ) Meeting – Mayor Josh Schroeder, Chair. Motion to approve the minutes as presented by Val Covey, second by Sofia Nelson . Approved 5-0, Kevin Cummins absent. B. Presentation of the annual financial report for the Wolf Lake Tax Increment Reinvestment Zone – Leigh Wallace, Finance Director Leigh Wallace, Finance Director provided an overview of the Board membership, as well as an overview of Tax Increment Financing/Tax Increment Reinvestment Zones, their purpose, how they are utilized, as well as the role of the Advisory Board. She also presented a map that outlined the TIRZ Boundary. Discussion: Development agreement, key to getting reimbursed – where are we on this? Not anywhere at this time. Assume they will ask for reimbursement. Working on Wastewater line now, building the stormwater infrastructure. Between Seton and HEB that would qualify for the minimum square foot. Seton doesn’t pay taxes? Initially it will be medical offices no hospital. Are the numbers still good with the total build out? Its to early to tell. We can ask for a project update. The connections that TXDOT are talking about – are they going to put a tunnel, main lanes, or auxiliary lanes? Is there anyway since the Page 4 of 21 Minutes Wolf Lakes Tax Increment Investment Zone (TIRZ) Board City of Georgetown, Texas August 5, 2021 at 1:30 PM development agreement hasn’t happened to put that part in there to allow for what needs to happen? With modeling the TIA with the type of employment density that they were rejecting as part of what’s available with the Zoning. Then TXDOT would have to have the special exits that went to the bypass lane to create the tunnel which adds about $25 million to cost to the intersection. TxDOT is turning around looking at the county first. The County and the City are local participation. They don’t want the tunnel. If you don’t develop the development to the density, then the TIRZ is not going to perform the way you want it to. Do we get to determine what is reimbursable through the development agreement? If we want to include this, you will have to come back as a TIRZ board and update the project plan. Over the next year one of two things will need probably happen - proposed development agreement and the ongoing discussion with TxDot about the intersection. Is it part of this TIRZ boards job to decide which part of the cost that should be reimbursable? The board will approve the project plan and the project modification. You also recommend the approval of the development agreement to council. We will need to meet again before next year. There is also the discussion of what the plan was when this TIRZ was created verses what their plan is now. Now that they are adding the whole section with HEB. The way things are developing we would not be recommending to council to float a bond and then use TIRZ dollars to reimburse us for the added cost of the TxDot intersection. Can we say in total the bonds are going to be sold when you hit the limits and we, city and county who have paid in more for those roads. could get reimbursed? Can TxDot mandate local participation? No, they can say this is not going to be built without your participation. They can say this is what we are going to build. There is a plan with the TIA and the assumption of the tunnel. In the development agreement, the list of items that are reimbursed, can this change? We can amend the agreement, but the list is the same. No Action Needed Motion from David to Adjourn Meeting, Meeting adjourned at 2:00 pm. __________________________________ ____________ Mayor Josh Schroeder Date Board Chair ___ _______________________________ ____________ Sharon Parker Date Board Liaison Page 5 of 21 City of Georgetown, Texas Downtown T I RZ Board August 4, 2022 S UB J E C T: P res entation of the annual financ ial report for the Wolf Lake Tax Increment R einves tment Zone – Nathan P arras , Assistant F inanc e Direc tor IT E M S UMMARY: An annual meeting of the T I R Z board is required by the by-laws . T his is traditionally completed in late S ummer, s o that the board c an review the previous year’s financial activity, as well as have a preview of the upc oming budget proposal for the T I R Z. S P E C IAL C O N S ID E R AT ION S : C ouncil is sc heduled to ac t on all c omponents of the F Y2023 budget in August 2022. F IN AN C IAL IMPAC T: . S UB MIT T E D B Y: S haron P arker AT TAC H ME N T S: Description Type Pres entation Pres entation Page 6 of 21 Wolf Lakes Tax Increment Reinvestment Zone Fiscal Year 21 Year End Balances Fiscal Year 22 and 23 Budget Update Page 7 of 21 22 Tax Increment Reinvestment Zones •Also called TIF –Tax Increment Financing •Geographical area where property tax revenues are dedicated from incremental increase in assessed values towards improvements in the zone •Property would not develop otherwise •Sets aside additional revenue accrued due to valuation increases after establishment of TIRZ •Improvement plan is approved •Revenues to be utilized towards improvements in the district •Authorized by Texas Constitution and Chapter 311 of Tax Code Page 8 of 21 33 Role of Board •Advisory to the Council •Council is final decision point for TIRZ activity •Board approves/recommends the project and funding plans •Annual meetings required to review financial activity Page 9 of 21 44 Background •The purpose of the Zone is to provide economic and qualitative benefits by facilitating a program of public improvements that provide for the development of a mixed-use development with business/corporate offices, retail, entertainment, and enhanced quality of life features for residents. •NW corner of IH35 and its intersection with University Avenue (SH29), bounded by Wolf Ranch Parkway to the west and the River Hills subdivision to the north. Page 10 of 21 5 Infrastructure Summary -Reimbursable •Onsite infrastructure $45.6M •Roads, utilities, drainage •Parking structures (5)$35M •Electric onsite and offsite $6.2M •Gas and fiber optic lines $2M •Offsite water and wastewater $1M •Memorial Drive and Traffic Impact off-site $3.5M •Common areas/open space/trails $8.2M •Total $102M •Interest/carrying costs also eligible for reimbursables up to revenue cap Page 11 of 21 6 Page 12 of 21 77 Summary Agreement •Financials-TIF reimbursements •City TIF = estimated $91M over 30 years (70%) •City’s increment capped at $100M •County TIF = estimated $19M over 20 years (50%) •County’s capped at $30M for road and drainage only •Total TIF reimbursement -$130M •Cash generated through additional annual tax revenue •Base Year Value of 2018 = $4,627,127. •Reimbursement only –developer reimbursed as tax revenue is generated Page 13 of 21 88 Summary Agreement •Reimbursement •Developer not eligible for reimbursement until 150,000 sq ft of commercial improvements are made •Developer reimbursement agreement will be forthcoming once phasing plan is updated •If residential units increase above 2,500, additional county approval Page 14 of 21 1010 FY2022 Projections •After the CAFR process, the FY2021 ending balance totaled $1,477. •FY2022 revenues are projected to finish the year in line with budget. •FY2022 expenses are projected to finish the year in line with budget. •$5,250 administrative expense includes fees for appraisal district, tax collection, accounting/finance, legal and city management Page 15 of 21 1111 FY2023 Budget •FY2023 revenues total $27K which represents an increase of 158% over FY2022 projections. •Continue to see growth in assessed value in the TIRZ Page 16 of 21 12 Page 17 of 21 1313 TIRZ Value Year Total AV Base Value TIRZ Value Increment Tax Rate TIRZ Revenue FY2020 4,627,127 4,627,127 - - FY2021 5,934,827 4,627,127 1,307,700 0.418 3,826 FY2022 6,767,673 4,627,127 2,140,546 0.401 6,009 FY2023 12,017,990 4,627,127 7,390,863 0.374 19,349 Wolf Lakes TIRZ Page 18 of 21 1414 FY2023 Budget •$334 Administrative Expense •Includes fees for appraisal district, tax collection, accounting/finance, legal and city management –based on updated allocation study in FY22 •Ending fund balance of $33K Page 19 of 21 Wolf Lakes TIRZ FY2021 Actuals Amended Budget Projected Base Budget Changes Proposed Budget Beginning Fund Balance - 1,632 1,477 6,736 - 6,736 Revenue 40001:Property Taxes 4,528 6,023 6,023 19,349 - 19,349 42001:Interest Income 2 - 5 - - - 45001:Misc Revenue 1,946 4,481 4,481 7,762 - 7,762 Revenue Total 6,477 10,504 10,509 27,111 - 27,111 Expense Operations 5,000 5,250 5,250 334 - 334 Expense Total 5,000 5,250 5,250 334 - 334 Ending Fund Balance 1,477 6,886 6,736 33,513 - 33,513 Reserves Contingency - - - - - - Reserves Total - - - - - - Available Fund Balance 1,477 6,886 6,736 33,513 - 33,513 FY2022 FY2023 Page 20 of 21 1616 Questions Page 21 of 21