HomeMy WebLinkAboutSouth_Georgetown_TIRZ_Board_Agenda_1_29_2016_1475Notice of Meeting for the
South Georgetown TIRZ Board
of the City of Georgetown
January 29, 2016 at 11:00 AM
at Georgetown Municipal Complex Williamson Room, located at 300-1 Industrial
Avenue, Georgetown, TX
The City of Georgetown is committed to compliance with the Americans with Disabilities Act (ADA).
If you require assistance in participating at a public meeting due to a disability, as defined under the
ADA, reasonable assistance, adaptations, or accommodations will be provided upon request. Please
contact the City at least four (4) days prior to the scheduled meeting date, at (512) 930-3652 or City
Hall at 113 East 8th Street for additional information; TTY users route through Relay Texas at 711.
Legislative Regular Agenda
A Presentation of the minutes from September 24, 2015 - Danella Elliott, Executive Assistant
B Discussion and possible action on TIRZ project construction timelines, scope and funding
projections - Jim Briggs, General Manager for Utilities
C Consideration and possible action to approve an agreement to dedicate tax increment reinvestment
zone revenues to reimburse the Georgetown Transportation Enhancement Corporation for costs
related to improvements of Oakmont/Mays Street/Rabbit Hill Road within the zone - Laurie
Brewer, Assistant City Manager
CERTIFICATE OF POSTING
I, Shelley Nowling, City Secretary for the City of Georgetown, Texas, do hereby certify that this
Notice of Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general
public at all times, on the ______ day of __________________, 2016, at __________, and remained
so posted for at least 72 continuous hours preceding the scheduled time of said meeting.
____________________________________
Shelley Nowling, City Secretary
Page 1 of 19
City of Georgetown, Texas
South Georgetown TIRZ Board
January 29, 2016
SUBJECT:
Presentation of the minutes from September 24, 2015 - Danella Elliott, Executive Assistant
ITEM SUMMARY:
Presentation and discussion of the minutes from September 24, 2015.
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Danella Elliott, Executive Assistant
ATTACHMENTS:
Description Type
9/24/15 Draft Minutes Backup Material
Page 2 of 19
Minutes of the Meeting of the
South Georgetown Tax Increment Reinvestment Zone (TIRZ) Board Meeting
City of Georgetown, Texas
September 24, 2015
The South Georgetown TIRZ met at 3:30 p.m. on September 24, 2015 in the Georgetown Municipal Complex
Williamson Room, located at 300-1 Industrial Avenue, Georgetown, Texas.
MEMBERS PRESENT: Mayor Dale Ross, Chair, David Morgan, Glenn Dishong, Sofia Nelson, Bill Stump,
Andreina Davila
MEMBERS ABSENT: Anna Eby, Bill Connor
A copy of these minutes, containing detailed information on the items listed below will be available in the Finance
and Administration Office, located at 113 East 8th Street, Georgetown, TX and can be found online at
http://agendas.georgetown.org/
Executive Session
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon’s Texas Codes, Annotated, the
items listed below will be discussed in closed session and are subject to action in the regular session that follows.
Regular Session – Called to order at 3:30 p.m..
The South Georgetown TIRZ Board may, at any time, recess the Regular Session to convene an Executive Session at
the request of the Chair of the South Georgetown TIRZ Board for any purpose authorized by the Open Meetings Act,
Texas Government Code Chapter 551.)
Public Wishing to Address Council
On a subject that is posted on this agenda: Please fill out a speaker registration form. Clearly print your name and
the letter of the item on which you wish to speak and present it to the Chair or Board Liaison, preferably prior to the
start of the meeting. You will be called forward to speak when the Board considers that item.
On a subject not posted on the agenda: Persons may add an item to a future Board agenda by contacting the Liaison
prior to the creation of the agenda for the following meeting, with the subject matter of the topic they would like to
address and their name. The Board Liaison can be reached at 512-930-3676 or by email at
danella.elliott@georgetown.org
Statutory Consent Agenda
The Statutory Consent Agenda includes non-controversial and routine items that Board may act on with one single
vote. A board member may pull any item from the Consent Agenda in order that the Board discuss and act upon it
individually as part of the Regular Agenda.
Legislative Regular Agenda
The Board will individually consider and possibly take action on any or all of the following items:
Mayor Dale Ross, Chair, called the meeting to order at 3:30 p.m.
A. Overview of the 2015/16 Financial Report - Micki Rundell, Chief Financial Officer
Micki presented the 2015-16 Financial Report. She noted that this is a required annual meeting to present
this report to the Board. As of January 1 2014, the TIRZ had $21,374,069 and January 1, 2015, the amount
was $36,958,279, making the incremental value $15,584,210. The revenue to the TIRZ is $67,635.47, with
the tax rate of $0.43400.
She explained that the South Georgetown TIRZ’s duration is through December 31, 2044, or when all project
costs (not to exceed $50 million) has been reimbursed. This includes any bonds issued to fund these projects.
This zone was created to fund public infrastructure necessary to encourage high quality commercial/retail
development at the intersection of IH35 and Westinghouse Road.
Page 3 of 19
The TIRZ is approximately 595 undeveloped acres along Westinghouse Road, between IH35 and FM1460
and includes not only the commercial areas directly behind the Bass Pro Shop, but also proposed residential
development adjacent to Terra Vista.
Following discussion, Glenn Dishong made the motion to adjourn, seconded by David Morgan.
The Meeting adjourned at 3:45 p.m.
Adjournment
The meeting was adjourned at 11:32 a.m.
Page 4 of 19
City of Georgetown, Texas
South Georgetown TIRZ Board
January 29, 2016
SUBJECT:
Discussion and possible action on TIRZ project construction timelines, scope and funding
projections - Jim Briggs, General Manager for Utilities
ITEM SUMMARY:
The project plan for the South Georgetown TIRZ included the following project, funding sources
and estimated costs. The plan outlined opportunities for the City utility funds, the Georgetown
Transportation Enhancement Corporation (4B sales tax Corporation) and/or the Georgetown
Economic Development Corporation (4A sales tax corporation) to fund the initial costs, with
future revenues from the TIRZ to reimburse the up front costs as value increases. The TIRZ
limited the overall project funding to $50 million in total projects to be funded.
Improvement
Project
Costs/
Debt
Issuance
Projected
Source
Estimated
Date
Est. Debt
Svc
% of
Total
Lift Station $ 1,500.000 City (WW) 2014 $ 123,975 4%
Force Main $ 900,000 City (WW) 2014 $ 74,385 3%
Gravity Sewer $ 5,300.000 City (WW) 2016 $ 438,045 15%
Elevated Storage Tank $ 1,800,000 City
(Water) 2016 $ 148,770 5%
Electric Utility
Extensions $ 5,600.000 City
(Electric 2014 $ 462,840 16%
Subtotal -
Utility Improvements $15,100,000 $1,248,015 43%
Oakmont $ 6,200,000 GTEC 2015 $ 512,430 18%
Blue Springs Road $ 1,900,000 GTEC 2019 $ 157,035 5%
Rabbit Hill Road $ 4,300,000 GTEC 2017 $ 355,395 12%
Westinghouse Road
Repair & Maint $ 7,500,000 GTEC 2017 $ 619,875 21%
Subtotal - Road
Improvements $19,900,000 $1,644,735 57%
Page 5 of 19
FINANCIAL IMPACT:
Staff will provide updated timelines on construction timelines, and funding estimates.
SUBMITTED BY:
Jim Briggs, General Manager for Utilities
Total - TIRZ Estimated
Project Costs $35,000,000 $2,892,750 100%
ATTACHMENTS:
Description Type
Economic Feasibility Study Backup Material
Page 6 of 19
Economic Feasibility Study
Zone Description:
The proposed zone is approximately 613 acres in total located in the South Eastern part of the City of
Georgetown, TX, east of I-35, and both north and south of Westinghouse Road. This area is entirely
within Williamson County. This zone will be just north of an existing subdivision, and also borders the
northern most part of the Round Rock Premium Outlet mall territory that is expected to be anchored by
Bass Pro. Most of this land is currently vacant. The life of the TIRZ is expected to extend thru 2044, and
it is expected to have $573,000,000 in development of Assessed Valuation.
Project Plan Specifics:
The project plan requires several upgrades, or new infrastructure in the area, with a total cost estimated
at $48,700,000.
1) For water services these will include a major lift/force main for wastewater to serve the
eastern portion of the zone, a gravity sewer interceptor, and a new elevated storage tank.
2) For streets these include linking Oakmont Drive to Westinghouse Road to provide access to
the Round Rock Outlet area, extending Blue Springs Road to Westinghouse for North/South
access, expansion of Rabbit Hill Road, and upgrading/repairing Westinghouse Road to
handle the increased traffic flow for the area.
3) Other items include extending electric lines, acquiring right of way, minor
stormwater/drainage improvements, and zone administration.
Finance Plan:
The Finance Plan includes cost estimates of the project, along with debt service estimates including
interest rates, terms, and estimated TIRZ value capture on an annual basis. It also includes estimates of
the revenues from the City at a 100% participation rate. For purposes of the Finance Plan, debt service
interest is estimated at 5.0% at a term of 20 years. The plan also estimates the addition of new value to
the TIRZ based on proposing timing on TIRZ projects and 1% annual valuation growth.
The Finance Plan includes the issuance of City debt to be repaid through the TIRZ, with the TIRZ only
supporting half the costs of Rabbit Hill Road, Westinghouse Road, and Blue Springs Road Extension. It is
anticipated debt for the project will be issued when the City is ready to commence building the
anticipated infrastructure. The Finance Plan projects that for most of the life of the TIRZ the Debt
Service Coverage Ratio will be below 1.5x, with only the first 4 years below 1.0x. Given the size of the
TIRZ, the Finance Plan shows that it could leave a cash balance of $31,203,177 in the TIRZ by 2044.
Therefore the Finance Plan anticipates that if the TIRZ Fund Balance is enough to pay off debt early, that
it will do so to prevent such a significant cash buildup. It is also possible that the City will decide to issue
more debt for infrastructure later in the Zone’s life, and can rely on the excess cash balance to do so.
Page 7 of 19
Assumptions of the Economic Feasibility Study:
1) Project Debt is expected to be issues on the following schedule:
Item Cost Entity Year Rate Term Pmt
Lift Station $1,500,000 WSS 2014 5% 20 $123,974.80
Force Main $900,000 WSS 2014 5% 20 $74,384.88
Gravity Sewer Interceptor $5,300,000 WSS 2016 5% 20 $438,044.28
Oakmont Drive Ext. $6,200,000 GTEC 2015 5% 20 $512,429.16
Blue Springs Road Ext. $1,900,000 GTEC 2019 5% 20 $157,034.74
Rabbit Hill Road $4,300,000 GTEC 2017 5% 20 $355,394.42
Westinghouse Road Repair & Maint. $7,500,000 GTEC 2017 5% 20 $619,873.99
New Elevated Storage Tank $1,800,000 WSS 2016 5% 20 $148,769.76
Electric Utility Ext. $5,600,000 ELE 2014 5% 20 $462,839.24
2) All zones are expected to appreciate at 1% APR after build out. The apartments are assumed to
drop in value after their first year based on examples provided by the Williamson County
Appraisal District. The project build out of the Zones within the TIRZ are expected to reflect the
following schedule (the years reflecting the year in which the TIRZ expects to receive tax
revenue from the development based on the AV shown):
Year
Comm/Retai
l (50MM)
Retail
(98MM)
Office/Com
m (166MM)
APTS(55MM
)
Residential
(174MM)
Residential
(174MM)
Mixed use
(30MM)
201
4 $0 $0 $0 $0 $0 $0 $0
201
5 $0
$20,000,00
0 $33,200,000 $0 $34,800,000 $34,800,000 $0
201
6 $0
$46,000,00
0 $66,400,000 $0 $69,600,000 $69,600,000 $0
Page 8 of 19
201
7 $0
$72,000,00
0 $99,600,000 $0
$104,400,00
0
$104,400,00
0 $0
201
8 $0
$98,000,00
0
$132,800,00
0 $55,000,000
$139,200,00
0
$139,200,00
0 $5,000,000
201
9 $12,500,000
$98,000,00
0
$166,000,00
0 $41,250,000
$174,000,00
0
$174,000,00
0
$10,000,00
0
202
0 $25,000,000
$98,000,00
0
$166,000,00
0 $41,250,000
$174,000,00
0
$174,000,00
0
$15,000,00
0
202
1 $37,500,000
$98,000,00
0
$166,000,00
0 $41,250,000
$174,000,00
0
$174,000,00
0
$20,000,00
0
202
2 $50,000,000
$98,000,00
0
$166,000,00
0 $41,250,000
$174,000,00
0
$174,000,00
0
$25,000,00
0
202
3 $50,000,000
$98,000,00
0
$166,000,00
0 $41,250,000
$174,000,00
0
$174,000,00
0
$30,000,00
0
Findings:
The above assumptions, along with the conditions in the Project and Financing plans, allow the TIRZ to
begin reimbursing debt payments beginning in 2015. The cash flow is expected to be more than
enough to cover all debt payments, and allow for the option of paying down debt obligations early, or
issuing more debt.
Page 9 of 19
City of Georgetown, Texas
South Georgetown TIRZ Board
January 29, 2016
SUBJECT:
Consideration and possible action to approve an agreement to dedicate tax increment reinvestment
zone revenues to reimburse the Georgetown Transportation Enhancement Corporation for costs
related to improvements of Oakmont/Mays Street/Rabbit Hill Road within the zone - Laurie
Brewer, Assistant City Manager
ITEM SUMMARY:
The project plan for the South Georgetown TIRZ included the following two projects that the
Georgetown Transportation Enhancement Corporation) would fund the initial costs, with future
revenues from the TIRZ to reimburse the up front costs as value increases. These two projects:
Mays Street extension (formerly known as Oakmont) and a portion of the Rabbit Hill Road
improvements are currently under design. An interlocal agreement with the City of Round Rock is
also under consideration for the portion of construction that is in the City of Round Rock
jurisdiction.
FINANCIAL IMPACT:
This contract would formalize the dedication of TIRZ revenues for reimbursement to GTEC for
the upfront costs for construction of Oakmont (Mays Street) and Rabbit Hill Road. GTEC will be
funding this construction through the issuance of 20 year bonds; therefore interest and issuance
costs (total debt service) is included in the agreement.
SUBMITTED BY:
Laurie Brewer, Assistant City Manager
Improvement
Project Costs/
Debt Issuance
Projected
Source
Estimated
Date Est. Debt Svc
Oakmont/Mays $ 6,200,000 GTEC 2015 $ 512,430
Rabbit Hill Road $ 4,300,000 GTEC 2017 $ 355,395
Subtotal - Road Improvements $ 10,500,000 $ 867,825
ATTACHMENTS:
Description Type
Draft Contract Backup Material
Page 10 of 19
PGS DRAFT 1-25-16
Page 1 South Georgetown TIRZ Reimbursement Agreement – Mays Street and Rabbit Street Project
GTEC and City of Georgetown, Texas (TM 75197)
STATE OF TEXAS §
§
COUNTY OF WILLIAMSON §
SOUTH GEORGETOWN TIRZ REIMBURSEMENT
AGREEMENT
(Mays Street and Rabbit Hill Project)
This agreement (“Agreement”) is made by and between the Georgetown Transportation
Enhancement Corporation, a Type B sales tax corporation (“GTEC”) and the City of Georgetown,
Texas (“City”) (each a “Party” and collectively the “Parties”), acting by and through their
respective authorized representatives.
WITNESSETH:
WHEREAS, the City adopted an Ordinance No. 2014-31 designating the South
Georgetown Tax Increment Reinvestment Zone (the “Zone”) in accordance with the Tax
Increment Financing Act, Texas Tax Code, Chapter 311 (the “TIRZ Act”) to promote development
within Zone through the use of tax increment financing; and
WHEREAS, the TIRZ Act authorizes the expenditure of funds derived within a tax
increment financing reinvestment zone for the payment of expenditures made or estimated to be
made and monetary obligations incurred or estimated to be incurred by the municipality
establishing a reinvestment zone that are listed in the project plan of the reinvestment zone, which
expenditures and monetary obligations constitute project costs as defined by the TIRZ Act; and
WHEREAS, the Project and Financing Plan for the Zone (“TIRZ Project Plan”) includes:
(i) the design and construction of Mays Street formerly known as Oakmont Drive (including
drainage and acquisition of any necessary rights-of-way) from the south city limit line to existing
Rabbit Hill Road; and (ii) and the design, and construction of the expansion of Rabbit Hill Road
to major collector status from Westinghouse to the Inner Loop, (including drainage and acquisition
of any necessary rights-of-way) in accordance with plans approved by the City (collectively the
“Project”); and
WHEREAS, the Project as set forth herein is an authorized project under the TIRZ Act
consistent with encouraging development of Zone in accordance with the purposes for its creation
and applicable laws: and
WHEREAS, City has requested GTEC provide advanced funding for estimated costs of
the Project located in the amount of Ten Million Six Hundred Fifty Thousand Dollars
($10,650,000.00) (hereinafter defined as the “Project Loan”) to be reimbursed to GTEC on an
annual basis from thirty percent (30%) of the Tax Increment (hereinafter defined) from the Zone
(hereinafter defined as the “Reimbursement Payments”); and
WHEREAS, GTEC is authorized by the Development Corporation Act, Chapters 501-505
of the Texas Local Government Code (“Development Corporation Act”) to provide grants and
funding for infrastructure which promotes new and expanding business enterprises; and
Page 11 of 19
Page 2 South Georgetown TIRZ Reimbursement Agreement – Mays Street and Rabbit Street Project
GTEC and City of Georgetown, Texas (TM 75197)
WHEREAS, the Board of Directors of GTEC has determined that the Project Loan to be
provided to City will provide and promote new and expanded business enterprises within the City
of and is an authorized project under the Development Corporation Act; and
WHEREAS, the Board of Directors of GTEC conducted a public hearing on November
19, 2014 for the use of its funds for the Project as required by the Development Corporation Act;
and
WHEREAS, GTEC intends to issue debt to fund transportation projects within the Zone
including the Project;
WHEREAS, the reimbursement of funds advanced by GTEC and to be reimbursed from
the tax increment fund of Zone for the costs of the Project is consistent with the Project Plan; and
WHEREAS, the Reimbursement Payments to be paid from the tax increment fund of Zone
are project costs consistent with the TIRZ Act;
WHEREAS, City has determined that allocating Zone tax increment for the
reimbursement of Project Loan will further the objectives of City, will benefit City and City’s
inhabitants and will promote local economic development and stimulate business and commercial
activity in City; and
WHEREAS, the Board of Directors for the Zone has recommended that City Council
approve the Project and this Agreement;
NOW THEREFORE, in consideration of the foregoing, and on the terms and conditions
hereinafter set forth, and other valuable consideration the receipt and sufficiency of which are
hereby acknowledged the Parties agree as follows:
Article I
Definitions
Wherever used in this Agreement, the following terms shall have the meanings ascribed to
them:
“Bankruptcy or Insolvency” shall mean the dissolution or termination (other than a
dissolution or termination by reason of a Party merging with an affiliate) of a Party’s
existence as a going business, insolvency, appointment of receiver for any part of a Party’s
property and such appointment is initially made, any general assignment for the benefit of
creditors, or the commencement of any proceeding under any bankruptcy or insolvency
laws by or against a Party and in the event such proceeding is not voluntarily commenced
by the Party, such proceeding is not dismissed within ninety (90) business days after the
filing thereof.
Page 12 of 19
Page 3 South Georgetown TIRZ Reimbursement Agreement – Mays Street and Rabbit Street Project
GTEC and City of Georgetown, Texas (TM 75197)
“Captured Appraised Value” means the total appraised value of all real property
taxable by the Taxing Units and located in Zone for the year less the Tax Increment Base
of the Taxing Units.
“City” shall mean the City of Georgetown, Texas.
“Commencement of Construction shall mean that: (i) the plans have been prepared
and all approvals thereof required by applicable governmental authorities have been
obtained for the construction of the Project; (ii) all necessary permits for the construction
of the Project pursuant to the plans therefore have been issued by all the applicable
governmental authorities; and (iii) grading of the land has commenced.
“Completion of Construction” shall mean that: (i) substantial completion of the
Project has occurred; and (ii) City has inspected and accepted the Project.
“Effective Date” shall mean the last date of execution hereof.
“Expiration Date” shall mean the earlier of the date the Project Loan has been repaid
to the GTEC through the Reimbursement Payments, and the date of expiration or
termination of the Zone, unless sooner terminated as provided herein.
“Force Majeure” shall mean any contingency or cause beyond the reasonable
control of a Party including, without limitation, acts of God or the public enemy, war, riot,
civil commotion, insurrection, government or de facto governmental action (unless caused
by acts of omissions of the Party), fires, explosions or floods, strikes, slowdowns or work
stoppages, but may not impact any payments to be made hereunder.
“GTEC” shall mean the Georgetown Transportation Enhancement Corporation.
“Project” shall collectively mean (i) the design and construction of Mays Street
formerly known as Oakmont Drive (including drainage any acquisition of necessary rights-
of-way) from the south city limit line to existing Rabbit Hill Road; and (ii) and the design,
and construction of the expansion of Rabbit Hill Road (including drainage any acquisition
of necessary rights-of-way)to major collector status from Westinghouse to the Inner Loop
(including drainage any acquisition of necessary rights-of-way) in accordance with plans
approved by the City.
“Project Loan” shall mean advanced funding provided by GTEC to City for the
costs of the Project in the amount of in the amount of Ten Million Six Hundred Fifty
Thousand Dollars ($10,650,000.00) to be reimbursed to GTEC on an annual basis from
thirty percent (30%) of the Tax Increment from the Zone.
“Reimbursement Payment” shall mean the annual payment to GTEC for the
reimbursement of the Project Loan from the Tax Increment, as set forth herein.
Page 13 of 19
Page 4 South Georgetown TIRZ Reimbursement Agreement – Mays Street and Rabbit Street Project
GTEC and City of Georgetown, Texas (TM 75197)
“Tax Increment” means the total amount of property taxes by the Taxing Units for
the year on the Captured Appraised Value of real property taxable by the Taxing Units and
located in the Zone.
“Tax Increment Base” means the total appraised value of all real property taxable
by a Taxing Unit for the year in which Zone was designated (2014).
“Tax Increment Fund” shall mean the funds deposited by City and any Taxing Unit
in the tax increment fund for Zone.
“Taxing Unit” shall mean the City and any other political subdivision or special
district that taxes real property within TIF Zone that enters into a participation agreement
with City to contribute to the Tax Increment Fund.
“Zone” shall mean City of Georgetown Tax Increment Financing Zone known as
South Georgetown Tax Increment Reinvestment Zone.
Article II
Term
The term of this Agreement shall begin on the Effective Date and continue until the
Expiration Date, unless sooner terminated as provided herein.
Article III
Project
3.1 Project Construction. City agrees, subject to GTEC providing the Project Loan, and
subject to events of Force Majeure, to cause the Commencement of Construction of the Project to
occur on or before ____, and subject to events of Force Majeure, to cause Completion of the
Construction thereof to occur on or before____.
3.2 Design and Construction of Project. City shall make application for any necessary
permits and approvals required by any applicable governmental authorities to be issued for the
construction of the Project.
3.3 Project Loan. Subject to the obligation of City to repay the Project Loan through
the Reimbursement Payments and the obligation to satisfy all of the terms and conditions of this
Agreement, GTEC agrees to provide the Project Loan to City to be paid in a lump sum amount
within thirty (30) days after the Effective Date or in lesser amounts over a periodic basis as deemed
necessary by the City. City shall within thirty (30) days after Completion of Construction of the
Project refund any portion of the Project Loan not expended by the City for the Project in the event
the actual costs of the Project are less than the Project Loan.
3.5 Current Revenue. The Project Loan made hereunder shall be provided solely from
lawful available funds.
Page 14 of 19
Page 5 South Georgetown TIRZ Reimbursement Agreement – Mays Street and Rabbit Street Project
GTEC and City of Georgetown, Texas (TM 75197)
3.6 Reimbursement Payments. (a) Subject to the continued satisfaction of all the terms
and conditions of this Agreement by GTEC, City agrees to reimburse GTEC for the Project Loan
from the Reimbursement Payments from the Tax Increment Funds as set forth herein.
(b) City shall make Reimbursement Payments to GTEC on an annual basis on June 1
of each calendar year beginning with June 1 of the calendar year following the Commencement of
Construction of the Project. The amount of each annual Reimbursement Payment shall be thirty
percent (30%) of the amount of the available Tax Increment Funds after consideration of the Tax
Increment Fund Priorities set forth in Section 3.7 below. The Reimbursement Payments shall
continue on an annual basis until the Project Loan is repaid in full or termination of this Agreement,
whichever occurs first.
(c) Parties agree that the Reimbursement Payments shall be provided solely from funds
from the Tax Increment Fund and only to the extent that funds are available in the Tax Increment
Fund from the Zone. GTEC acknowledges and agrees that City is only obligated to reimburse
GTEC for Project Loan to the extent that there are available funds from the Tax Increment Fund
from Zone during the term of this Agreement. Nothing in this Agreement shall be construed to
obligate City to provide Reimbursement Payments from any other source of funds or to otherwise
require City to pay GTEC for Project Loan in the event there are insufficient funds in the Tax
Increment Fund from the Zone to repay the Project Loan or in the event Zone terminates prior to
payment in full of the Project Loan. Upon the termination of this Agreement or the Expiration
Date, any Reimbursement Payments under this Agreement that remain un-reimbursed or that
remain unpaid, due to lack of availability of Tax Increment Funds from the Zone shall no longer
be considered an obligation of the Zone, and any obligation of City to provide Reimbursement
Payments to GTEC for the repayment of the Project Loan shall automatically expire and terminate
on such date.
3.7 Tax Increment Fund Priorities. Except as otherwise provided herein, the funds
deposited in the Tax Increment Fund from Zone shall only be used for the following and applied
in the following order of priority:
(i) amounts pledged or required for payment of outstanding bonds or City debt issued
for the Zone, if any;
(ii) allocation of the reasonable administrative costs of the Zone;
(iii) maintenance of a minimum balance of $25,000.00 in the Tax Increment Fund;
(iv) any prior existing agreements allocating Tax Increment Funds for other Projects in
the Zone; and
(iv) Reimbursement Payments to GTEC.
3.8 Current Revenue. The Reimbursement Payments to be provided herein shall be
paid solely from lawful available funds in the Tax Increment Fund from the Zone. Under no
circumstances shall obligations of City hereunder be deemed to create any debt within the meaning
of any constitutional or statutory provision.
Page 15 of 19
Page 6 South Georgetown TIRZ Reimbursement Agreement – Mays Street and Rabbit Street Project
GTEC and City of Georgetown, Texas (TM 75197)
Article IV
Termination; Repayment
4.1 Termination. This Agreement shall terminate upon any one of the following:
(a) by mutual written agreement of the Parties;
(b) on Expiration Date;
(c) upon written notice by either Party in the event the other Party breaches any
of the terms or conditions of this Agreement and such breach is not cured
within thirty (30) days after written notice thereof;
(d) upon written notice by GTEC, if the City fails to use the Project Loan for
the Project within one hundred eighty (180) days; and
(e) upon written notice by either Party, if any subsequent Federal or State
legislation or any decision of a court of competent jurisdiction declares or
renders this Agreement invalid, illegal or unenforceable.
4.2 Repayment. In the event the Agreement is terminated by the GTEC pursuant to
Section 5.1 (c), (d) or (e) City shall immediately pay to the GTEC an amount equal to the Project
Loan paid by GTEC to the City under this Agreement as of the date of such termination. The
repayment obligation of City set forth in this section 5.2 shall survive termination.
Article V
Miscellaneous
5.1 Binding Agreement; Assignment. The terms and conditions of this Agreement are
binding upon the successors and assigns of all Parties hereto. This Agreement may not be assigned
by either Party without the prior written consent of the other Party.
4.2 Limitation on Liability. It is acknowledged and agreed by the Parties that the terms
hereof are not intended to and shall not be deemed to create a partnership or joint venture among
the Parties. It is understood and agreed between the Parties that the Parties in satisfying the
conditions of this Agreement have acted independently, and neither Party assumes any
responsibilities or liabilities to third parties in connection with these actions.
4.3 Authorization. Each Party represents that it has full capacity and authority to grant
all rights and assume all obligations that are granted and assumed under this Agreement.
4.4 Notice. Any notice required or permitted to be delivered hereunder shall be deemed
received three (3) days thereafter sent by United States Mail, postage prepaid, certified mail, return
receipt requested, addressed to the Party at the address set forth below or on the day actually
received if sent by courier or otherwise hand delivered.
If intended for GTEC, to:
President
Georgetown Transportation
With a copy to:
City Attorney
510 W. Ninth Street
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Page 7 South Georgetown TIRZ Reimbursement Agreement – Mays Street and Rabbit Street Project
GTEC and City of Georgetown, Texas (TM 75197)
Enhancement Corporation
City of Georgetown
113 E. Eighth Street
Georgetown, Texas 78626
Georgetown, Texas 78626
If intended for City, to:
Mayor
City of Georgetown
113 E. Eighth Street
Georgetown, Texas 78626
With a copy to:
City Attorney
510 W. Ninth Street
Georgetown, Texas 78626
4.5 Entire Agreement. This Agreement is the entire Agreement between the Parties with
respect to the subject matter covered in this Agreement. There is no other collateral oral or written
Agreement between the Parties that in any manner relates to the subject matter of this Agreement,
except as provided in any Exhibits attached hereto.
4.6 Governing Law. The Agreement shall be governed by the laws of the State of
Texas; and venue for any action concerning this Agreement shall be in the State District Court of
Williamson County, Texas. The Parties agree to submit to the personal and subject matter
jurisdiction of said court.
4.7 Amendment. This Agreement may be amended by the mutual written agreement
of the Parties.
4.8 Legal Construction. In the event 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 other provisions, and it is the intention of the
Parties to this Agreement that in lieu of each provision that is found to be illegal, invalid, or
unenforceable, a provision be added to this Agreement which is legal, valid and enforceable and is as
similar in terms as possible to the provision found to be illegal, invalid or unenforceable.
4.9 Recitals. The recitals to this Agreement are incorporated herein.
4.10 Counterparts. This Agreement may be executed in counterparts. Each of the
counterparts shall be deemed an original instrument, but all of the counterparts shall constitute one
and the same instrument.
4.11 Exhibits. Any exhibits to this Agreement are incorporated herein by reference for all
purposes wherever reference is made to the same.
4.12 Survival of Covenants. Any of the representations, warranties, covenants, and
obligations of the Parties, as well as any rights and benefits of the Parties, pertaining to a period
of time following the termination of this Agreement shall survive termination.
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Page 8 South Georgetown TIRZ Reimbursement Agreement – Mays Street and Rabbit Street Project
GTEC and City of Georgetown, Texas (TM 75197)
4.13 Employment of Undocumented Workers. During the term of this Agreement, City
agrees not to knowingly employ any undocumented workers and if convicted of a violation under 8
U.S.C. Section 1324a (f), City shall repay the amount of the Project Loan and any other funds received
by City from GTEC as of the date of such violation within one hundred twenty (120) days after the
date City is notified by GTEC of such violation, plus interest at the rate of four percent (4%)
compounded annually from the date of violation until paid. City is not liable for a violation of this
section in relation to any workers employed by a subsidiary, affiliate, or franchisee or contractor of
City or by a person with whom the City contracts.
4.14 Conditions Precedent: This Agreement and the obligations of the parties are expressly
subject to the TTEC issuing the debt necessary for the funding of the Project Loan.
(Signature page to follow)
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Page 9 South Georgetown TIRZ Reimbursement Agreement – Mays Street and Rabbit Street Project
GTEC and City of Georgetown, Texas (TM 75197)
EXECUTED on this _______ day of _____________________, 2016.
GEORGETOWN TRANSPORTATION
ENHANCEMENT CORPORATION
By:
_________, President
EXECUTED on this _______ day of _____________________, 2016.
CITY OF GEORGETOWN, TEXAS
By:
Dale Ross, Mayor
Page 19 of 19