	Tax Increment Reinvestment Zone No. One
	Agenda Request
Agenda Of:	10-06-06	Agenda Request No:		II A
Initiated By:	Matthew Fielder, Economic Development Manager	Responsible Department:		Economic Development
Presented By:	Matthew Fielder, Economic Development Manager	Department Head:		Regina Morales Director
		Additional Department. Head (s):		N/A
Subject / Proceeding:	Consideration and Action on Approving the TIRZ No. 1 Fiscal Year 2005-2006 Annual Report
Exhibits:	TIRZ No. 1 Fiscal Year 2005-2006 Annual Report
Clearances			Approval
Legal:	N/A		Executive Director:	Joe Esch, Business and Intergovernmental Relations
Recommended Action
Approval of the TIRZ No. 1 Fiscal Year 2005-2006 Annual Report
Executive Summary
State law requires the governing body of a municipality in which there is a tax increment reinvestment zone located to provide to the Comptroller an annual report no later than ninety days after the end of the fiscal year. The report includes for the board’s consideration revenue, expenditures, debt, tax increment base, appraised value, and captured value as included in the state law. Remaining steps in the process include approval by the City Council, and subsequent distribution to Fort Bend County and Lid No. 2.
Exhibits

Tax Increment Reinvestment Zone

Number One

Sugar Land, Texas

Annual Report

Fiscal Year Ending September 30, 2006

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TABLE OF CONTENTS

Sugar Land City Council............................................................................. 3

TIRZ #1 Board of Directors........................................................................ 4

Description of the Zone.............................................................................. 5

Purpose of the Zone................................................................................... 5

State of the Zone Report............................................................................. 5

Tables

Table A, Amount and Source of Revenue FY 2006.............................................................. 6

Table B, Amount and Purpose of Expenditures FY 2006.................................................... 6

Table C, Tax Increment Base and Captured Appraised Value FY 2006............................. 7

Table D, Tax Increments Received by Participating Entities FY 2006............................... 7

Appendices

Exhibit 1, Sugar Land Town Square Illustrative Site Plan................................................. 8

CITY OF SUGAR LAND, TEXAS

CITY COUNCIL

Council Members as of September 30, 2006

Mayor David G. Wallace

Council Members

At Large Position One Thomas Abraham

At Large Position Two Daniel O. Wong

District One Dennis C. Parmer

District Two Cyril Hosley

District Three Russell C. Jones

District Four Michael S. Schiff

TIRZ NUMBER ONE

CITY OF SUGAR LAND, TEXAS

BOARD OF DIRECTORS

As of September 30, 2006

Position 1 Allen Bogard

State Senator Designee

Position 2 John Gamble

State Representative Designee

Position 3 Michael Siwierka, Chairman

City of Sugar Land Designee

Position 4 Greg Stirman

City of Sugar Land Designee

Position 5 Louis Garvin

City of Sugar Land Designee

Position 6 Jared Jameson

City of Sugar Land Designee

Position 7 Vincent DiCosimo, Secretary

City of Sugar Land Designee

Position 8 Joan Damon

City of Sugar Land Designee

Position 9 Robert Treacy, Vice Chairman

Fort Bend County Designee

DESCRIPTION OF ZONE

In accordance with the Tax Increment Financing Act (Chapter 311, Tax Code), Reinvestment Zone Number One, Sugar Land, Texas (the Zone) was established by Ordinance 1149 of the City Council of the City of Sugar Land, Texas on December 1, 1998. The Zone also known as Sugar Land Town Square, consists of 32.83 acres located in Sugar Land, Fort Bend County, Texas The Zone is generally located at the southwest corner of State Highway 6 and U.S. 59. In addition the Zone is located in Fort Bend I.S.D. and Fort Bend County L.I.D. #2.

An illustrative site plan encompassing the TIRZ is found on page 9 as Exhibit 1. As of September 30, 2006 all structures found on this site plan have either been completed or were under construction, with the exception of the proposed residential adjacent to Hwy. 6 and the areas labeled future office/retail and future garage expansion adjacent to U.S. Highway 59.

PURPOSE OF ZONE

The purpose of Tax Increment Reinvestment Zone Number One is to facilitate the development of a 32.83 acre multi-use downtown, known as Sugar Land Town Square. The development is planned as a neo-traditional urban-styled downtown with a town square, generous open space, extensive streetscapes and wide sidewalks providing access to retail stores, offices and restaurants. A 1.2 acre central plaza with a fountain, capable of accommodating 3,000 people, is a cornerstone for programming community events including concerts, festivals and civic celebrations.

Sugar Land Town Square, as proposed, affords the City the opportunity to provide, in accordance with the Comprehensive Plan, the following:

Ø Planned Community Development

Ø Focal Point of Community

Ø Central City identity

Ø Activity Center

The Comprehensive Plan forecasts that the City’s growth will continue north, south and west. Sugar Land Town Square is centrally located offering the greatest access and visibility to the citizens and residents.

The Zone will also provide a mechanism for the implementation and construction of traffic improvements recommended for relieving traffic congestion at the Hwy. 6 and US Hwy. 59 intersection, as well as improving mobility throughout the general area.

STATE OF THE ZONE IN FY 2006

1. The information provided in this section is in accordance with § 311.016 (a) (1) of the Texas Tax Code, which requires inclusion of the amount and source of revenue in the tax increment fund established for the zone for fiscal year 2006.

In addition to the City’s tax increment revenue, interlocal agreements with Fort Bend County and Fort Bend LID #2 provide for each taxing unit’s participation in the zone at 100%. The Zone was created for a period of 26 years. It will terminate no later than December 31, 2025. Revenue collected from each participating tax unit during fiscal year 2006 appears below in Table A.

TABLE A

Incremental Taxes:
City of Sugar Land	$180,197
Fort Bend County	$104,946
Fort Bend LID #2	$292,970
Interest Income
Total Revenues Fiscal Year 2005	$578,113

2. The information provided in this section is in accordance with § 311.016 (a) (2) of the Texas Tax Code, which requires inclusion of the amount and purpose of expenditures from the fund.

The total cost of the development as planned is estimated at $163,000,000 including the public improvements. The public improvements to be constructed in the Zone, which constitute eligible Project Costs as defined in Chapter 311.002, are estimated by the Developer to total $11,500,000. Regardless of actual costs, reimbursement is capped at $11,500,000 plus 5% interest. Actual expenditures, by amount and purpose, for FY 2005 are provided in Table B below.

TABLE B

Professional Services	$17,029
Postage & Freight	$124
Property & Liability Insurance	$1,758
Public Relations/ Marketing	$200,000
Assignment Fees to 4A and 4B Corporations	$404,807
Property Taxes	$158
Training	$147
Total Expenditures Fiscal Year 2006	$624,023

3. The information provided in this section is in accordance with § 311.016 (a) (3) of the Texas Tax Code, which requires inclusion of the amount of principal and interest due on outstanding bonded indebtedness.

No bonded debt was issued during fiscal year 2004-2005. The Zone has no prior outstanding bond indebtedness. Therefore, no principal and interest payments were due or made.

4. The information provided in this section is in accordance with § 311.016 (a) (4) of the Texas Tax Code, which requires inclusion of the tax increment base and current captured appraised value retained by the zone.

In each year subsequent to the base year, the Zone will receive tax increment revenue based on ad valorem property taxes levied and collected by each participating taxing unit on the captured appraised value of the Zone. The captured appraised value of the Zone is the total appraised value of all real property located within the Zone, less the tax increment base value.

Participating in the Zone has been approved by the City, County and Fort Bend County Levee Improvement District #2 as follows:

City of Sugar Land 100%

Fort Bend County 100%

Fort Bend LID #2 100%

As of January 1, 1998 the base year for the Zone, the area encompassed by the Zone was undeveloped land, with a total appraised value of $5,570,200. On January 1, 2005, the area encompassed by the Zone had a total appraised value of $67,794,630. As a result, the total captured appraised value on the tax roll as of January 1, 2005 was $62,224,430.

TABLE C

Year	Total AV	Base Value	Captured Value
January 1, 1998	$ 5,570,200	$ 5,570,200	-
January 1, 1999	5,928,110	5,570,200	$ 357,910
January 1, 2000	6,320,380	5,570,200	750,180
January 1, 2001	6,497,110	5,570,200	926,910
January 1, 2002	6,365,370	5,570,200	795,170
January 1, 2003	24,175,389	5,570,200	18,605,189
January 1, 2004	42,905,050	5,570,200	37,334,850
January 1, 2005	67,794,630	5,570,200	62,224,430

5. The information provided in this section is in accordance with § 311.016 (a) (5) of the Texas Tax Code, which requires inclusion of the captured appraised value shared by the municipality and other taxing units, the total amount of tax increments received, and any additional information necessary to demonstrate compliance with the tax increment financing plan adopted by the governing body of the municipality.

As previously stated, the City, Fort Bend County and Fort Bend LID #2 are the only taxing units participating in the Zone. Table D below summarizes the captured appraised value by tax year and the actual tax increment revenue received from each participating taxing unit.

TABLE D

Tax Year	Captured Appraised Value	City Taxes	Fort Bend County Taxes	Fort Bend LID #2 Taxes	Total
1999	$ 357,910	$ 1,282.39	$ 2,233.72	$ 829.42	$ 4,345.53
2000	750,180	2,612.88	4,531.84	1,725.42	8,870.14
2001	926,910	3,089.39	5,288.70	2,131.89	10,509.98
2002	795,170	2,614.99	4,283.90	1,828.89	8,727.78
2003	18,605,189	61,099.01	97,442.82	39,071.00	197,612.83
2004	37,334,850	121,592.00	195,538.00	74,670.00	392,160.00
2005	62,224,430	180,197.00	104,946.00	292,970.00	578,113.00
				Grand Total	$1,200,339.26