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HomeMy WebLinkAboutWolf_Lakes_TIRZ_Board_Agenda_8_5_2021_3900Notice of Meeting for the Wolf L akes T I RZ B oard of the City of Georgetown August 5, 2021 at 1:30 P M 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 Wolf Lake T I R Z Board is now meeting in-person with a quorum present and public is welc ome to attend. If spec ial ac commodations are needed due to C O VI D-19 and attending virtually is nec es s ary, pleas e reac h out to the S taff Liais on, S haron P arker at s haron.parker@georgetown.org or 512-930-6534 for assistanc e B Approval of the July 31, 2020 Wolf Lakes T I R Z Board Meeting minutes - Mayor, Josh S c hroeder C P resentation of the annual financial report for the Wolf Lakes Tax Inc rement R einvestment Zone – Leigh Wallace, F inanc e Direc tor 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 _________________, 2021, 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 26 City of Georgetown, Texas Downtown T I RZ Board August 5, 2021 S UB J E C T: Approval of the July 31, 2020 Wolf Lakes T I R Z Board Meeting minutes - Mayor, Jos h S chroeder 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 26 Wolf Lakes TIRZ Minutes July 31, 2020 Page 1 of 3 MINUTES Wolf Lakes Tax Increment Investment Zone (TIRZ) Board of the City of Georgetown July 31, 2020 at 2:15 PM at Telecommuting The Wolf Lakes Tax Increment Investment Zone (TIRZ) Board met virtually on July 31, 2020 at 2:15 p.m. Consistent with Governor Greg Abbott’s suspension of various provisions of the Open Meetings Act, effective August 1, 2020 and until further notice, to reduce the chance of COVID-19 transmission, all City of Georgetown Advisory Board meetings will be held virtually. Public comment will be allowed via teleconference; no one will be allowed to appear in person. Board Members Present City Staff Present Mayor Dale Ross, Board Chair Laurie Brewer, Assistant City Manager Sofia Nelson, Planning Director Michaela Dollar, Economic Development Director Steve Bohenkamp, GEDCO Board Leigh Wallace, Finance Director David Morgan, City Manager Mayra Cantu, Management Analyst Val Covey, Williamson County, Pct. 3 Comm Shirley Rinn, Executive Assistant to the City Manager David Morgan, City Manager Sabrina Poldrack, Contract Administrator Robyn Densmore, City Secretary Wayne Reed, Assistant City Manager Board Members Absent Guests Present Shawn Hood, Business Owner Williamson County Rep #2 Mayor Ross called meeting to order at 1:30 p.m. When the roll call was initially done it was determined that a quorum of the members were present via videoconferencing: (Mayor Ross, Nelson, Bohenkamp, Covey) David Morgan joined the meeting after the roll call. Williamson County has 2 representatives, but only Val Covey was present. (This Regular Session may, at any time, be recessed to convene an Executive Session for any purpose authorized by the Open Meetings Act, Texas Government Code 551.) Legislative Regular Agenda A Discussion on how this virtual conference will be conducted, to include options for public comments and how the public may address the Commission – Dale Ross, Chair Mayor Ross provided an overview of the virtual meeting logistics. B Approval of the December 16, 2019 Wolf Lakes TIRZ Board Meeting minutes - Mayor Dale Ross, Chair Motion by Mayor Ross, second by Bohenkamp to approve the minutes from the December 16, 2019 Wolf Lakes TIRZ Board Meeting. (Approved 6-0) (Hood and Wilco #2 Absent) Page 3 of 26 Wolf Lakes TIRZ Minutes July 31, 2020 Page 1 of 3 C Presentation of the annual financial report for the Wolf Lakes Tax Increment Reinvestment Zone – Laurie Brewer, Assistant City Manager 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 slide that was not included with the posted agenda outlining the base value of the Rivery TIRZ compared to the incremental increase in value over time in order to demonstrate visually how a TIRZ value grows over time. (attached as Exhibit “A” to these minutes) Wallace presented a map that outline the TIRZ Boundary, which includes the NW corner of IH 35 and its intersection with University Avenue(SH 29), bounded by Wolf Ranch Parkway to the west and the River hills subdivision to the north. Wallace also provided an overview of the guiding documents of the TIRZ, which include a Planned United Development, the City TIRZ Ordinance, which includes the Project and Financing Plan, a Williamson County TIF Agreement, and a Developer Reimbursement Agreement, which at the time of this meeting had not yet been developed. She also provided an overview of the reasons the City supported the creation of the Wolf Lakes TIRZ. A summary of reimbursable infrastructure projects was presented to the board, which totaled $102 million in possible projects that could be completed in the TIRZ. The City’s portion of the TIF is estimated at $91 million over 30 years, Williamson County’s portion is estimated to be $19 million over 20 years, with the County’s portion capped at $30 million for road and drainage projects only. The total TIF reimbursement is estimated at $130 million. The 2018 Base Year Value for the Wolf Lake TIRZ is $4.6 million. Wallace reiterated that the developer is not eligible for reimbursement until there are 150,000 of commercial improvements in the zone and that if residential units increase above 2,500 additional County approval would be required. She also told the Advisory Board that the Developer Reimbursement Agreement would be forthcoming once the phasing plan is updated. Wallace also provided a summary chart outlining the project Assessed Values of the Wolf Lakes TIRZ through 2049. She also discussed the anticipated budget for FY21, which included revenues of $6,583, but emphasized that these revenues were based off of the base values and that significant increases are expected as the property develops. She also told the Advisory Board that the anticipated expenses included a $5,000 Administrative Fee to reimburse the City for overhead expenses, which includes fees for appraisal district, tax collection, accounting/finance, legal and city management. Wallace also presented the Fund Schedule for the Wolf Lake TIRZ, which only includes FY21, and indicates a fund balance of $1,583 after reimbursing the administrative fees to the City. Wallace opened the floor to questions. Page 4 of 26 Wolf Lakes TIRZ Minutes July 31, 2020 Page 1 of 3 Commissioner Covey requested a verification that the City and County would be potentially contributing $130 million to the eligible projects. She also inquired if it was known yet if TXDOT’s plan for the intersection at Hwy 29 and the connections to the access road would impact the TIRZ and the roles and responsibilities of the City, County, and Developer related to who would pay for those project improvements. She also inquired whether or not it was known if the TIRZ would have the capacity to reimburse those entities over time for those infrastructure improvements. Morgan indicated that the TIRZ project plan was programmed to include the connections to the access roads as responsibility of Wolf Lake and would be reimbursable, as well as a Traffic Impact Study related to those road improvements. He went on to say that all of the anticipated responsibilities of each of the parties would be outlined in the Development Agreement once it is developed. He also indicated that there was a possibility that the road improvements could be done before the development occurred and in that case we would have to front the costs and be reimbursed at a later time once the development occurred. The City and the Developer will also continue to work with TXDOT in the development of this infrastructure as it pertains to the TIRZ. Bohenkamp inquired about timing of projects and whether or not multi-family was also still included in the Project Plan. Morgan confirmed that there are 2 multi-family projects planned off of Wolf Ranch Parkway. He also indicated that Ascension would probably be multi-phased and could potentially include medical offices and maybe a hospital. He also indicated that Iva Wolf mentioned that they are also pursing some other commercial options closer to the Hwy 29 corridor. Morgan anticipates a Development Agreement within the year. Nelson confirmed that Planning had received some plats for multi-family along Wolf Ranch Parkway that are in the application phase. General discussion regarding the magnitude of this project and how quickly it can take off. Adjournment Motion by Mayor Ross, second by Bohenkamp to Adjourn. Meeting was adjourned at 2:39 p.m. Date: Mayor Josh Schroeder Board Chair Attest: Date Sharon Parker Board Liaison Page 5 of 26 Wolf Lakes TIRZ Minutes – Exhibit A July 31, 2020 Page 1 of 1 Page 6 of 26 City of Georgetown, Texas Downtown T I RZ Board August 5, 2021 S UB J E C T: P res entation of the annual financ ial report for the Wolf Lakes Tax Increment R einves tment Zone – Leigh Wallac e, F inance Director 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 EC I AL C O NS I DER AT I O NS : C ouncil is sc heduled to ac t on all c omponents of the F Y2022 budget in August 2021. AT TAC HMENT S : P res entation, inc luding fund sc hedule, history, zone map, history 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 Financial Report Pres entation Page 7 of 26 FY2022 Annual Budget Wolf Lakes TIRZ Fiscal Year 21 and 22 Budget Update Page 8 of 26 FY2022 Annual Budget Wolf Lakes TIRZ Board of Directors: –Mayor –Councilmember District 2 –City Manager –City Planning Director –Member of City’s 4A Board –2 reps from WILCO Page 9 of 26 FY2022 Annual Budget What is TIF Financing? •Tax Increment Financing (TIF) is a tool local governments may use to finance public improvements within defined areas that have unique challenges or opportunities for economic development. –A municipality may make an area eligible for tax increment financing by designating a reinvestment zone (TIRZ). –Taxes on the appraised value of the zone in the year the zone was designated (the “base” year) continue flowing to the general funds of taxing units, but, for participating government units, all or part of the increased tax revenue due to greater real property values in TIF zone flows to a tax increment financing fund (“TIF or TIRZ”) for a specified maximum term of years. •Authorized by Texas Constitution and Chapter 311 of Tax Code Page 10 of 26 FY2022 Annual Budget 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 11 of 26 FY2022 Annual Budget Purpose: –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. Page 12 of 26 FY2022 Annual Budget Wolf Lakes TIRZ Background •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 13 of 26 FY2022 Annual Budget Wolf Lakes TIRZ Boundaries Page 14 of 26 FY2022 Annual Budget Wolf Lakes TIRZ –Guiding Documents •Planned Unit Development •City TIRZ Ordinance –Project and financing plan •County TIF agreement •Developer Reimbursement Agreement (not yet developed) Page 15 of 26 FY2022 Annual Budget Why TIF for Wolf Lakes? •Strong corporate use opportunities –Retail will support office and residential •Mixed use provides additional sustainability •PUD provides higher level of development standards •Additional tax base generated due to design and density •Non-reimbursable project costs estimated at $978M –Developer estimates $1.7B versus $460M traditional –value at year 2050 •TIF provides framework for performance based reimbursement Page 16 of 26 FY2022 Annual Budget 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 City of GeorgetownPage 17 of 26 FY2022 Annual Budget Summary –Property Taxes/TIF •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 City of GeorgetownPage 18 of 26 FY2022 Annual Budget Summary –Property Taxes/TIF •Reimbursement –Developer not eligible for reimbursement until 150,000 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 City of GeorgetownPage 19 of 26 FY2022 Annual Budget Assessed Value –Wolf Lakes LP Projection City of Georgetown 169,445,532 642,106,743 1,287,055,012 1,421,012,731 1,732,206,590 1,874,996,121 - 200,000,000 400,000,000 600,000,000 800,000,000 1,000,000,000 1,200,000,000 1,400,000,000 1,600,000,000 1,800,000,000 2,000,000,000 2020 2025 2030 2035 2045 2049 Wolf Lakes LP Projection Page 20 of 26 FY2022 Annual Budget FY2022 Budget •FY2022 revenues total $10,504 –City’s 70% increment is $6,023 –County’s 50% increment is $4,481 •Significant increases expected as property develops Page 21 of 26 FY2022 Annual Budget FY2022 Budget •FY2022 expenses total $5,250 –$5,250 for administrative costs •Fees for appraisal district, tax collection, accounting/finance, legal and city management Page 22 of 26 FY2022 Annual Budget Page 23 of 26 FY2022 Annual Budget Fund Schedule Wolf Lakes TIRZ FY2020 Actuals Amended Budget Projected Base Budget Changes Proposed Budget Beginning Fund Balance - - - 1,632 - 1,632 Revenue 40001:Property Taxes - 3,845 4,530 6,023 - 6,023 42001:Interest Income - - 2 - - - 45001:Misc Revenue - 2,738 2,100 4,481 - 4,481 Revenue Total - 6,583 6,632 10,504 - 10,504 Expense Operations - 5,000 5,000 5,250 - 5,250 Expense Total - 5,000 5,000 5,250 - 5,250 Ending Fund Balance - 1,583 1,632 6,886 - 6,886 Reserves Contingency - - - - - - Reserves Total - - - - - - Available Fund Balance - 1,583 1,632 6,886 - 6,886 FY2021 FY2022 Page 24 of 26 FY2022 Annual Budget Next Steps •Council reviews and adopts budget –August/September •Developer reimbursement agreement will be developed •New fiscal year begins October 1 Page 25 of 26 FY2022 Annual Budget Questions Page 26 of 26