From
Terrence Ra'mond Harbin
Title
Ordinance Extending Boundary and Term of Tax Increment Reinvestment Zone (TIRZ) #3
Presenter
Marty Wieder, Director of Economic Development
Recommended Action
Approve
Analysis
City Council established Tax Increment Reinvestment Zone (TIRZ) #3 on July 13, 1999 to facilitate economic development through infrastructure improvements within a designated geographic area in south Grand Prairie.
Since State laws governing Tax Increment Reinvestment Zones and Tax Increment Financing (TIF) have been amended a number of times since TIRZ #3 was created, staff recommended engaging David Pettit Economic Development (DPED) to examine how this TIRZ might be extended and even expanded to include other portions of Grand Prairie.
DPED has worked with the City’s Economic Development Department staff over several weeks and before delivering an ordinance to amend the one which created TIRZ #3. Staff and DPED officials briefed the TIF Board on these proposed amendments on Wednesday, December 11, 2019.
Following City Council consideration and action on this proposed, amending Ordinance, DPED representatives will continue communications with the other local governments participating in TIRZ #3 concerning the amendments. The City will convene TIRZ #3 Board members will convene in early 2020 to consider the Project Plan amendments-and then return to Council for consideration of the Project Plan amendments.
Financial Consideration
Preliminary Projected Net Benefit to City-$77,021,611
Body
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, AMENDING ORDINANCE NO. 6126, CONCERNING TAX INCREMENT REINVESTMENT ZONE NUMBER THREE, CITY OF GRAND PRAIRIE, TEXAS, ESTABLISHED PURSUANT TO CHAPTER 311 OF THE TEXAS TAX CODE, BY EXPANDING THE BOUNDARIES AND EXTENDING THE TERM OF TAX INCREMENT FINANCING REINVESTMENT ZONE NUMBER THREE, CITY OF GRAND PRAIRIE, TEXAS
WHEREAS, the City of Grand Prairie, Texas (the "City"), pursuant to Chapter 311 of the Texas Tax Code, as amended (the "Act"), may designate a geographic area within the City as a tax increment reinvestment zone if the area satisfies the requirements of the Act; and
WHEREAS, the Act provides that the governing body of a municipality by ordinance may designate a noncontiguous geographic area that is in the corporate limits of the municipality to be a reinvestment zone if the governing body determines that development or redevelopment would not occur solely through private investment in the reasonably foreseeable future; and
WHEREAS, the City Council desires to promote the development of a certain noncontiguous geographic area in the City, which is more specifically described in Exhibits "A" and "B" of this Ordinance (the "Zone"), through the expansion of a reinvestment zone as authorized by and in accordance with the Tax Increment Financing Act, codified at Chapter 311 of the Texas Tax Code; and
WHEREAS, on July 13, 1999, the City Council of the City of Grand Prairie, Texas, pursuant to Chapter 311 of the Texas Tax Code, approved Ordinance No. 6097 designating a contiguous geographic area within the City as a Reinvestment Zone Number Three, City of Grand Prairie, Texas (the "Zone"); and
WHEREAS, on August 17, 1999, the City Council of the City of Grand Prairie, Texas, pursuant to Chapter 311 of the Texas Tax Code, approved Ordinance No. 6126 amending Reinvestment Zone Number Three, City of Grand Prairie, Texas (the "Zone"); and
WHEREAS, on August 17, 1999, the City Council of the City of Grand Prairie, Texas, pursuant to Chapter 311 of the Texas Tax Code, approved Ordinance No. 6127 Dedicating 100% of the Tax Increment Levied and Collected by the City of Grand Prairie to Reinvestment Zone Number Three, City of Grand Prairie, Texas (the "Zone"); and
WHEREAS, on August 31, 1999, the City Council of the City of Grand Prairie, Texas, pursuant to Chapter 311 of the Texas Tax Code, approved Ordinance No. 6130 to reflect the terms of the final negotiated agreements with taxing jurisdictions participating in Reinvestment Zone Number Three, City of Grand Prairie, Texas (the "Zone"); and
WHEREAS, by tax year 2012, City of Grand Prairie, Tarrant County, Tarrant County Hospital District and Tarrant County College ceased collection and payment of all increment from the Tarrant County parcels in the Zone as obligations for projects located in the Tarrant County portion of the Zone were fully paid; and
WHEREAS, the City Council of the City of Grand Prairie, Texas, now desires to further amend Reinvestment Zone Number Three, City of Grand Prairie, Texas, to expand the boundaries of the existing Reinvestment Zone Number Three and extend the term; and
WHEREAS, upon approval of this Ordinance, Reinvestment Zone Number Three, City of Grand Prairie, Texas, will consist of noncontiguous land, as described and depicted in Exhibits "A" and "B" of this Ordinance, a copy of which is attached hereto and is incorporated herein for all purposes; and
WHEREAS, Section 311.01 l(e) of the Texas Tax Code, in pertinent part provides, "If an amendment reduces or increases the geographic area of the zone, increases the amount of bonded indebtedness to be incurred, increases or decreases the percentage of a tax increment to be contributed by a taxing unit, increases the total estimated project costs, or designates additional property in the zone to be acquired by the municipality or county, the approval must be by ordinance or order, as applicable, adopted after a public hearing that satisfies the procedural requirements of Sections 311.003(c) and (d);" and
WHEREAS, pursuant to and as required by the Act, the City has prepared an Amended Preliminary Reinvestment Zone Project Plan and Financing Plan for Reinvestment Zone Number One, City of Grand Prairie, attached as Exhibit C (hereinafter referred to as the "Preliminary Project and Finance Plan") for a proposed tax increment reinvestment zone containing the real property within the Zone; and
WHEREAS, notice of the public hearing on the expansion of the proposed zone was published in a newspaper having general circulation in the City on December 9, 2019, which date is before the seventh (7th) day before the public hearing held on December 17, 2019; and
WHEREAS, at the public hearing on December 17, 2019, interested persons were allowed to speak for or against the expanded boundaries of the Zone, the extension of the term, and the concept of tax increment financing, and owners of property in the proposed Zone were given a reasonable opportunity to protest the inclusion of their property in the Zone; the public hearing was held in full accordance with Section 311.003(c) of the Act; and
WHEREAS, evidence was received and presented at the public hearing on December 17, 2019, and in favor of the amendment of the Zone; and
WHEREAS, after all comments and evidence, both written and oral, were received by the City Council, the public hearing was closed on December 17, 2019; and
WHEREAS, the City has taken all actions required to expand the Zone including, but not limited to, all actions required by the home-rule Charter of the City, the Act, the Texas Open Meetings Act (defined herein), and all other laws applicable to the creation of the Zone; and
WHEREAS, the percentage of the property in the proposed zone, excluding property that is public owned, that is used for residential purposes is less than thirty percent; and
WHEREAS, a Preliminary Project and Finance plan has been prepared for the proposed expanded reinvestment zone.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, THAT:
SECTION 1. RECITALS INCORPORATED.
The facts and recitations contained in the preamble of this Ordinance are hereby found and declared to be true and correct.
SECTION 2. FINDINGS.
That the City Council, after conducting the above described hearing and having heard the evidence and testimony presented at the hearing, has made the following findings and determined based on the evidence and testimony presented to it:
(a) That the public hearing on the expansion of the reinvestment zone and extension of the term has been properly called, held, and conducted and that notice of such hearing has been published as required by law; and
(b) That the expansion of the reinvestment zone with boundaries as described and depicted in Exhibits "A" and "B" will result in benefits to the City, its residents and property owners, in general, and to the property, residents, and property owners in the reinvestment zone; and
(c) That the expanded reinvestment zone, as defined in Exhibits "A" and "B", meets the criteria for the creation of a reinvestment zone set forth in the Act in that:
1. It is a geographic area located wholly within the City limits of the City; and
2. That the City Council further finds and declares that the proposed zone meets the criteria and requirements of Section 311.005 of the Texas Tax Code because the proposed zone is predominantly open and, because of obsolete platting, deterioration of structures or site improvements, or other factors, substantially impair or arrest the sound growth of the City or county.
(d) That 30 percent or less of the property in the proposed reinvestment zone, excluding property dedicated to public use, is currently used for residential purposes; and
(e) That the total appraised value of all taxable real property in the proposed reinvestment zone according to the most recent appraisal rolls of the City, together with the total appraised value of taxable real property in all other existing reinvestment zones within the City, according to the most recent appraisal rolls of the City, does not exceed 25 percent of the current total appraised value of taxable real property in the City and in the industrial districts created by the City, if any; and
(f) That the improvements in the proposed reinvestment zone will significantly enhance the value of all taxable real property in the proposed reinvestment zone and will be of general benefit to the City or county; and
(g) That the development or redevelopment of the property in the proposed reinvestment zone will not occur solely through private investment in the reasonable foreseeable future.
SECTION 3. DURATION OF THE ZONE.
That the expanded Zone shall take effect immediately upon the passage and approval of this Ordinance, consistent with Section 311.004(a)(3) of the Act, and termination of the Zone shall occur upon any of the following: (i) on December 31, 2041; (ii) at an earlier time designated by subsequent ordinance; (iii) at such time, subsequent to the issuance of tax increment bonds, if any, that all project costs, tax increment bonds, notes and other obligations of the Zone, and the interest thereon, have been paid in full, in accordance with Section 311.017 of the Act.
SECTION 4. TAX INCREMENT BASE
That the Tax Increment Base for the original boundaries of the TIRZ is the total appraised value of all real property taxable by the City and located in the TIRZ, determined as of January 1, 1999, when the TIRZ was designated, and for those parcels added to the TIRZ with this boundary expansion included in this December 17, 2019 amendment, the appraised value is to be determined as of January 1, 2019.
SECTIONS. SEVERABILITY CLAUSE.
Should any section, subsection, sentence, clause or phrase of this Ordinance be declared unconstitutional or invalid by a court of competent jurisdiction, it is expressly provided that any and all remaining portions of this Ordinance shall remain in full force and effect. The City hereby declares that it would have passed this Ordinance, and each section, subsection, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional or invalid.
SECTION 6. OPEN MEETINGS.
It is hereby found, determined, and declared that sufficient written notice of the date, hour, place and subject of the meeting of the City Council at which this Ordinance was adopted was posted at a place convenient and readily accessible at all times to the general public at the City Hall of the City for the time required by law preceding its meeting, as required by Chapter 551 of the Texas Government Code, and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter hereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof.
SECTION 7. EFFECTIVE DATE.
This Ordinance shall take effect immediately upon its adoption and publication in accordance with and as provided by law and the City Charter.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 17th DAY OF DECEMBER 2019.