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Tax Increment
Reinvestment Zone No. One |
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Agenda Request |
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Agenda Of: |
12-08-06 |
Agenda Request
No: |
II A |
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Initiated By: |
Matthew Fielder,
Economic Development Manager |
Responsible
Department: |
Economic
Development |
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Presented By: |
Matthew Fielder,
Economic Development Manager |
Department
Head: |
Regina Morales Director |
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Additional
Department. Head (s): |
N/A |
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Subject /
Proceeding: |
Consideration and
Action on Approving the TIRZ No. 1 Fiscal Year 2005-2006 Annual Report |
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Exhibits: |
TIRZ No. 1 Fiscal
Year 2005-2006 Annual Report |
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Clearances |
Approval |
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Legal: |
N/A |
Executive
Director: |
Joe Esch,
Business and Intergovernmental Relations |
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Recommended
Action |
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Approval of the TIRZ No. 1 Fiscal Year 2005-2006 Annual Report |
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Executive
Summary |
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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. |
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Exhibits |
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Tax Increment
Reinvestment Zone
Number One
Sugar Land, Texas
Annual Report
Fiscal Year Ending
September 30, 2006
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............................................................................. 6
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............................... 8
Appendices
Exhibit 1, Sugar Land Town Square Illustrative Site Plan................................................. 9
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 southern 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 Tower Lofts 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 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 also serves as 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
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Incremental Taxes: |
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City of Sugar Land |
$180,197.00 |
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Fort Bend County |
$104,946.00 |
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Fort Bend LID #2 |
$292,970.00 |
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Interest Income |
$12,258.69 |
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Administrative
Services |
$537.05 |
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Total Revenues
Fiscal Year 2006 |
$590,908.74 |
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 2006 are provided in
Table B below.
TABLE B
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Professional Services |
$7,536.65 |
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Other Contractual |
$8,000.00 |
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Intergovernmental Contracts |
$158.12 |
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Public Relations/ Marketing |
$200,000.00 |
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Assignment Fees to 4A and 4B Corporations |
$404,807.00 |
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Postage & Freight |
$123.81 |
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Printing & Advertising |
$147.00 |
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Insurance |
$1,758.00 |
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Total Expenditures Fiscal Year 2006 |
$622,530.58 |
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 by the Zone during fiscal year 2005-2006. The Zone has no prior outstanding bond indebtedness.
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.
Participation levels in the Zone have 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
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Year |
Total AV |
Base Value |
Captured Value |
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January 1, 1998 |
$ 5,570,200 |
$ 5,570,200 |
- |
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January 1, 1999 |
5,928,110 |
5,570,200 |
$ 357,910 |
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January 1, 2000 |
6,320,380 |
5,570,200 |
750,180 |
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January 1, 2001 |
6,497,110 |
5,570,200 |
926,910 |
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January 1, 2002 |
6,365,370 |
5,570,200 |
795,170 |
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January 1, 2003 |
24,175,389 |
5,570,200 |
18,605,189 |
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January 1, 2004 |
42,905,050 |
5,570,200 |
37,334,850 |
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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 |
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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 |
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Grand Total |
$1,200,339.26 |
Exhibit 1
