HomeMy WebLinkAboutDowntown_TIRZ_Board_Agenda_10_27_2014_909Notice of Meeting for the
Downtown TIRZ Board
of the City of Georgetown
October 27, 2014 at 1:00 PM
at GMC Williamson Room., located at 300-1 Industrial Ave, Georgetown, TX
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Legislative Regular Agenda
A Discussion and possible action to recommend approval of the expansion and an extension of the
expiration date of the Downtown Tax Increment Reinvestment Zone – Laurie Brewer, Assistant
City Manager and Matt Synatschk, Historic Planner – Laurie Brewer, Assistant City Manager and
Matt Synatschk, Historic Planner
CERTIFICATE OF POSTING
I, Jessica Brettle, 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 __________________, 2014, at __________, and remained so
posted for at least 72 continuous hours preceding the scheduled time of said meeting.
____________________________________
Jessica Brettle, City Secretary
City of Georgetown, Texas
SUBJECT:
Discussion and possible action to recommend approval of the expansion and an extension of the
expiration date of the Downtown Tax Increment Reinvestment Zone – Laurie Brewer, Assistant
City Manager and Matt Synatschk, Historic Planner – Laurie Brewer, Assistant City Manager and
Matt Synatschk, Historic Planner
ITEM SUMMARY:
The Downtown TIRZ was created in 2004, with the adoption of Ordinance 2004-077 (Exhibit 1).
The original TIRZ included the majority of the Downtown Overlay District, omitting several
residential properties located along the boundaries of the Downtown Overlay District.
Additionally, the Downtown TIRZ ordinance created an expiration date of December 31, 2029.
Since the adoption of the TIRZ in 2004, the majority of the omitted properties converted from
residential to commercial use, and economic factors reduced the available tax increment, limiting
the project funds. The City continues to emphasize redevelopment within the Downtown Overlay
District, necessitating the expansion of the TIRZ boundaries and the extension of the expiration
date.
City Council adopted Resolution 82614-G (Exhibit 2) on August 26, 2014, directing staff to
proceed with an expansion of the Downtown Overlay District and the TIRZ. This expansion
includes existing city properties and private properties requesting to be added to the District. City
staff initiated the expansion of the Downtown Overlay District in September 2014, conducting a
public hearing at the October 7, 2014 Planning & Zoning Commission Meeting and receiving a
positive recommendation for City Council. On October 14, 2014, City Council adopted the
proposed ordinance on first reading. Second reading is currently scheduled for October 28, 2014.
The current and proposed boundaries of the Downtown Overlay District and the Downtown TIRZ
are included for review (Exhibit 3).
Staff reviewed economic models (Exhibit 4) for the projected growth and costs associated with the
TIRZ and determined that a 15 year extension would maximize the available funds, allowing for
continued development within the Downtown Overlay District.
The following exhibits are included with this item:
Exhibit 1 – City Council Ordinance 2004-77
Exhibit 2 – City Council Resolution 82614-G
Exhibit 3 – Current and proposed boundary maps
Exhibit 4 – Downtown TIRZ Analysis and Scenarios
Based upon the information presented, Staff requests an affirmative recommendation for this item
is to initiate the process to expand the Downtown TIRZ, including a boundary expansion to align
with the Downtown Overlay District and an extension of the term, setting the new expiration date
for 2044.
FINANCIAL IMPACT:
Once properties are added to the TIRZ, any new property or increase in appraised value of
properties within the boundaries will fund the TIRZ. The data sheets for the properties to be added
are attached, along with the TIRZ revenue analysis (Exhibit 4).
SUBMITTED BY:
Laurie Brewer, Assistant City Manager and Matt Synatschk, Historic Planner
ATTACHMENTS:
Description Type
Exhibit 1 - Ordinance 2004-77 Cover Memo
Exhibit 2 - Resolution 82614-G Cover Memo
Exhibit 3 - Current-proposed boundary maps Cover Memo
Exhibit 4 - TIRZ Analysis - Scenarios Cover Memo
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Downtown GeorgetownTIRZ (T03)
Downtown Georgetown TIRZ
T03_parcels_08072014
Map Created: 8/7/2014
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Legend
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DOWNTOWN OVERLAY
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Cartographic Data For General Planning Purposes Only
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0 100 200 300 400 500
Feet
Coordinate System: Texas State Plane/Central Zone/NAD 83/Feet
Curren t Downto wn O verlay
Proposed Extension Area
Parcels
Downtown TIRZ Analysis
After running three revenue scenarios, it is assumed the TIRZ fund will not be able to support debt
service payments of any size for at least 10 to 15 years. The addition of a debt service payment would
hamper the fund’s ability to finance its current obligations and any one-time expenditures which
normally occur in the budget process from year to year.
Additionally, while the fund may be able to support a debt service payment in the future, it may not be
the best move financially. Because the City would be issuing debt on a fund with limited resources, the
interest rate may be higher than if the City issued debt through its normal avenues.
By 2020, it is assumed TIRZ revenue will near $ 300K. Under the current model in which roughly $175K
is used for on-going maintenance and beatification projections (ADA sidewalks, tree restoration, general
repairs), it is assumed the fund will have an addition $100-125K available each year. Obviously as the
TIRZ matures, this unencumbered money will grow. Over the course of an additional 5-10 years, the
fund could then support a DS payment, though its ability to participate in “one-time” projects while
funding its current scope of work would be restricted.
Attached is the debt service payment schedule with three different rates. All schedules are based on 20
year terms.
As it currently stands, the “baseline” revenue assumes no change in tax rate and a linear regression for
increases in property values based on the last seven years of data. Scenario 1 assumes 200K in new
property each year, 4.25% increase in value and a .001 increase in property tax. I have built the model
so you all can change the assumptions and values.
Debt Capacity
Interest Rate 0.04 0.045 0.05
Term 20 20 20
Loan 20 @ 4.0 20 @ 4.5 20 @ 5.0
1,000,000 73,582 76,876 80,243
1,250,000 91,977 96,095 100,303
1,500,000 110,373 115,314 120,364
1,750,000 128,768 134,533 140,425
2,000,000 147,164 153,752 160,485
2,250,000 165,559 172,971 180,546
2,500,000 183,954 192,190 200,606
2,750,000 202,350 211,409 220,667
3,000,000 220,745 230,628 240,728
3,250,000 239,141 249,847 260,788
3,500,000 257,536 269,067 280,849
3,750,000 275,932 288,286 300,910
4,000,000 294,327 307,505 320,970
4,250,000 312,722 326,724 341,031
4,500,000 331,118 345,943 361,092
4,750,000 349,513 365,162 381,152
5,000,000 367,909 384,381 401,213
5,250,000 386,304 403,600 421,274
5,500,000 404,700 422,819 441,334
5,750,000 423,095 442,038 461,395
6,000,000 441,491 461,257 481,456
6,250,000 459,886 480,476 501,516
6,500,000 478,281 499,695 521,577
6,750,000 496,677 518,914 541,637
7,000,000 515,072 538,133 561,698
7,250,000 533,468 557,352 581,759
7,500,000 551,863 576,571 601,819
7,750,000 570,259 595,790 621,880
8,000,000 588,654 615,009 641,941
8,250,000 607,049 634,228 662,001
8,500,000 625,445 653,447 682,062
8,750,000 643,840 672,666 702,123
9,000,000 662,236 691,885 722,183
9,250,000 680,631 711,104 742,244
9,500,000 699,027 730,323 762,305
9,750,000 717,422 749,542 782,365
10,000,000 735,818 768,761 802,426
Scenario 1
Scenario 2