Agenda Request

	City Council
	Agenda Request
Agenda Of:	12-01-09	Agenda Request No:		vi-b
Initiated By:	Regina Morales	Responsible Department:		Economic Development
Presented By:	Regina Morales	Department Head:		Regina Morales, Economic Development Director
		Additional Department. Head (s):		N/A
Subject / Proceeding:	Public Hearing Regarding the Creation of Reinvestment Zone Number Four, City of Sugar Land, Texas, Pursuant to the Provisions Of Chapter 311 of the Texas Tax Code and Conduct First Reading Ordinance No. 1768
Exhibits:	Ordinance No. 1768
Clearances			Approval
Legal:	Joe Morris, City Attorney		Executive Director:	Jim Callaway, Community Development
Purchasing:	N/A		Asst. City Manager:	N/A
Budget:	N/A		City Manager:	Allen Bogard/for AB
Budget
Expenditure Required: $			N/A
Current Budget: $			N/A
Additional Funding: $			N/A
Recommended Action
Hold Public Hearing and receive public comment; approve Ordinance 1768 on First Reading and pass to Second Reading.
Executive Summary
The city of Sugar Land desires to designate an area within the City as Reinvestment Zone Number Four. A public hearing is required prior to adopting an ordinance creating the TIRZ. The hearing provides for public input on the proposed City of Sugar Land Reinvestment Zone Number Four. Legal staff and outside counsel (Andrews Kurth) provided assistance with preparation of the TIRZ Creation Ordinance and preliminary plans. The ordinance and preliminary plans provide for Council’s position and authority to implement preliminary plans for TIRZ Number Four. Reinvestment Zone Number Four will facilitate a program of public improvements including entertainment venues, theaters, plazas, stadiums, parks and associated projects within the entertainment district. Development of an entertainment district requires significant public investment in public buildings, parking, plazas and spaces. The Zone could not be developed without the public infrastructure and facilities financed by the Zone. The Zone will cover approximately 701.96 acres, and is located entirely within Fort Bend County, Texas and the corporate limits of the City. The Zone will be created for a term of thirty (30) years pursuant to Sections 311.005(a)(1) and (2) of the Tax Increment Financing Act. The Preliminary Project Plan and Preliminary Reinvestment Zone Financing Plan describe the Zone and the plans for the Project and estimate the general impact of the Zone on property values and tax revenues, and are available for viewing in the City Secretary’s Office. Staff recommends that City Council approve the First Reading of this ordinance and pass to Second Reading. The ordinance must be approved by December 31^st in order to establish 2009 base year values within the TIRZ. Second and Final Consideration is scheduled for December 15^th.
Exhibits

ORDINANCE NO. 1768

AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, DESIGNATING A CONTIGUOUS 701.96 ACRE GEOGRAPHIC AREA WITHIN THE CITY OF SUGAR LAND, TEXAS, AS REINVESTMENT ZONE NUMBER FOUR, CITY OF SUGAR LAND, TEXAS; CREATING A BOARD OF DIRECTORS FOR SUCH ZONE; MAKING VARIOUS FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND CONTAINING OTHER MATTERS RELATED THERETO

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WHEREAS, the City Council (the “City Council”) of the City of Sugar Land, Texas (the “City”) desires to designate a contiguous geographic area within the City, more particularly described in Exhibit A hereto and depicted in Exhibit B hereto, as a reinvestment zone (the “Zone”) under the provisions of Chapter 311 of the Texas Tax Code, as amended (the “Act”) for the purpose of promoting the development and redevelopment of the Zone; and

WHEREAS, pursuant to Section 311.003 of the Act, the City (a) by letters dated, September 3, 2009, provided written notice of its intent to establish the Zone to the governing body of each taxing unit that levies taxes on real property in the Zone; (b) by letters dated October 20, 2009, provided additional written notice of its intent to expand the geographical area of the proposed Zone by approximately 400 acres, (c) prepared a preliminary project plan and reinvestment zone financing plan (the “Preliminary Plan”) describing the boundaries of the Zone, the tentative plans for the development and redevelopment of the Zone and an estimate of the general impact of the Zone on property values and tax revenues; (d) provided copies of the Preliminary Plan to the governing body of each taxing unit that levies taxes on real property in the Zone; and (e) made formal presentations regarding the Preliminary Plan to the governing body of each county or school district that levies taxes on real property in the Zone; and

WHEREAS, the Preliminary Plan provides that a portion of the City’s ad valorem taxes collected on real property within the Zone are to be deposited into the tax increment fund created herein (the “TIF”), and that a portion of the ad valorem taxes of Fort Bend County, Texas (the “County”) collected on real property within the Zone may be utilized in the financing of public improvements in the Zone, subject to the limitations described herein; and

WHEREAS, following notice thereof, published on November 18, 2009 in the Fort Bend Star, a newspaper of general circulation in the City, a hearing was held on December 1, 2009, regarding the creation of the Zone and its benefits to the City and to property within the Zone, such hearing being more than sixty (60) days following the initial notice to the taxing units described above and less than sixty (60) days following the supplemental notice to the taxing units described above; and

WHEREAS, Fort Bend County, Fort Bend Independent School District, Fort Bend County Municipal Utility District No. 137, Fort Bend County Municipal Utility District No. 138, Fort Bend County Municipal Utility District No. 139, Fort Bend County Drainage District and Fort Bend County Levee Improvement District No. 17 have each waived any right to sixty (60) day notice following mailing of the supplemental notice described above; and

WHEREAS, at the public hearing all interested persons were allowed to speak for or against the creation of the Zone, its boundaries, and the concept of tax increment financing and evidence was received and presented at the public hearing in favor of the creation of the Zone under the provisions of the Act; and

WHEREAS, no owner of real property in the Zone protested the inclusion of their property in the Zone;

NOW, THEREFORE,

BE IT ORDAINED BY THE CITY COUNCIL

OF THE CITY OF SUGAR LAND, TEXAS:

Findings

(a) That the facts and recitations contained in the preamble of this Ordinance are hereby found and declared to be true and correct and are adopted as part of this Ordinance for all purposes.

(b) That the City Council further finds and declares that the proposed improvements in the Zone will significantly enhance the value of all the taxable real property in the Zone and will be of general benefit to the City.

(c) That the City Council further finds and declares that the area included in the Zone is unproductive, underdeveloped or blighted.

(d) That the City Council further finds and declares that the Zone meets the criteria of Section 311.005(a)(1) and (2) of the Act because the Zone is an area that

(1) substantially arrests and impairs the sound growth of the City, retards the provision of housing accommodations, constitutes an economic and social liability, and is a menace to the public health, safety, morals and welfare in its present condition and use because of the presence of:

(a) the predominance of defective or inadequate sidewalk and street layout;

(b) faulty lot layout in relation to size, adequacy, accessibility or usefulness;

(d) the deterioration of site or other improvements; and

(e) conditions that endanger life or property by fire or other cause; and

(2) is predominantly open and, because of obsolete platting, deterioration of structures or site improvements, or other factors, substantially impairs or arrests the sound growth of the City.

(e) That the City Council, pursuant to the requirements of the Act, further finds and declares:

(1) That the Zone is a contiguous geographic area located wholly within the corporate limits of the City;

(2) That not more than ten (10) percent of the property in the Zone, excluding property that is publicly owned, is used for residential purposes;

(3) That the total appraised value of taxable real property in the Zone, and in existing reinvestment zones, does not exceed fifteen (15) percent of the total appraised value of taxable real property in the City and in industrial districts created by the City; and

(4) That development or redevelopment within the boundaries of the Zone will not occur solely through private investment in the reasonably foreseeable future.

Designation of the Zone

That the City, acting under the provisions of the Act, does hereby create and designate a reinvestment zone over the area described in Exhibit A and depicted in the map attached hereto as Exhibit B, to be known as Reinvestment Zone Number Four, City of Sugar Land, Texas (the “Zone”).

Board of Directors

That there is hereby created a Board of Directors for the Zone, which shall consist of five (5) members. The City Council shall appoint the members of the Board; provided, however, that the Commissioners Court of the County shall be entitled to appoint a director to Position Five if the County approves the payment to the TIF of all or part of the Tax Increment (determined in accordance with Section 311.012 the Act) attributable to the County. Failure of the County to appoint a director by December 31, 2010, shall be deemed a waiver of the County’s right to appoint a director, and the City Council shall be entitled to appoint a person to such position.

The initial directors appointed to odd-numbered positions shall be appointed for two-year terms, beginning January 1, 2010, while the directors appointed to even-numbered positions shall be appointed to one-year terms, beginning January 1, 2010. All subsequent appointments shall be for two-year terms. The member of the Board of Directors appointed to Position One is hereby designated to serve as the chair of the Board of Directors for a term beginning January 1, 2010, and ending December 31, 2010. Thereafter, the City Council shall annually appoint a member to serve as chair for a term of one year beginning January 1 of the following year. The City Council hereby authorizes the Board of Directors to elect from its members a vice chairman, a secretary, and such other officers as the Board of Directors sees fit.

Powers and Duties of the Board of Directors

The Board of Directors shall exercise only those powers as shall be specifically granted by this or any subsequent ordinance of the City Council. The City Council may rescind any previously granted power by ordinance. The Board of Directors shall make recommendations to the City Council regarding the administration, management and operation of the Zone.

The Board of Directors shall prepare or cause to be prepared and adopt a final project plan and reinvestment zone financing plan (the “Final Plan”) for the Zone as described in Section 311.011 of the Act, and shall submit the Final Plan to the City Council for its approval. Subject to the prior approval of the City Council, the Board of Directors may employ any consultants that may be reasonably necessary to assist the Board of Directors in the preparation and implementation of the Final Plan.

The Board of Directors shall prepare and recommend to the City Council for its approval the annual report required by Section 311.016 of the Act, an annual budget and annual financial statements prepared in accordance with generally accepted accounting principles.

Duration of the Zone

That the Zone shall take effect on the date of the final passage and approval of this Ordinance, and terminate on the earliest of (a) December 31, 2039, (b) an earlier time designated by subsequent ordinance, or (c) at such time, subsequent to the issuance of tax increment bonds, if any, that all Project Costs (as defined in the Act), tax increment bonds, and the interest on the bonds, have been paid in full.

Tax Increment Fund

That there is hereby created and established a Tax Increment Fund (the “TIF”) for the Zone. The TIF may be further divided into additional accounts and sub-accounts as authorized by subsequent ordinances. All Tax Increments shall be deposited in the TIF. The TIF and any accounts and sub-accounts shall be maintained at the depository bank of the City and shall be secured in the manner prescribed by law for Texas cities. All revenues from the sale of any tax increment bonds or other notes hereafter issued by the City, if any, revenues from the sale of property acquired as part of the Final Plan, if any, and other revenues to be used in the Zone shall be deposited into the TIF. Money shall be disbursed from the TIF in accordance with the terms of the Redevelopment Agreement and only to pay Project Costs for the Zone, to satisfy the claims of holders of tax increment bonds or notes issued for the Zone or pursuant to any agreement the City Council considers necessary or convenient to implement the Final Plan and achieve the Zone’s purposes.

City Tax Increment Participation

That the City shall participate in the Zone by contributing fifty percent (50%) of its Tax Increment (determined in accordance with Section 311.012 of the Act) generated from ad valorem taxes on real property in the Zone actually collected (the “City’s Ad Valorem Tax Increment”). As further described in the Final Plan, the contribution of the City’s Ad Valorem Tax Increment shall begin with the taxes levied in the year 2010 and shall end with the taxes levied in the year 2039 and collected thereafter.

Severability

If any provision, section, subsection, sentence, clause or phrase of this Ordinance, or the application of same to any person or set of circumstances, is for any reason held to be unconstitutional, void or invalid, the validity of the remaining provisions of this Ordinance or their application to other persons or set of circumstances shall not be affected thereby, it being the intent of the City Council in adopting this Ordinance that no portion hereof or regulations contained herein shall become inoperative or fail by reason of any unconstitutionality, voidness or invalidity of any portion hereof, and all provisions of this Ordinance are declared severable for that purpose.

Open Meetings

It is hereby found, determined and declared that a 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 rapidly accessible at all times to the general public at the City Hall of the City for the Time required by law preceding this meeting, as required by the Open Meetings Law, Texas Gov’t Code Ann., ch. 551, 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.

Notices

The contents of the notice of the public hearing, which hearing was held before the City Council on December 1, 2009, and the publication of said notice, is hereby ratified, approve and confirmed.

EXHIBIT A

LEGAL DESCRIPTION OF THE ZONE

DESCRIPTION OF

Approximately 700 acres

Being 701.9625 acres of land located in the Alexander Hodge League, Abstract 32, Fort Bend County, Texas, more particularly being described by metes and bounds as follows;

BEGINNING at the southwesterly corner of Reserve C of the First Colony Boulevard Commercial Park Replat, by instrument of record in File No. 9835194, F.B.C.O.P.R., point also being in the easterly line of Fort Bend Levee Improvement District No. 2 (property known as Ditch H north of Southwest Freeway) conveyed in Vol. 1905, Page 1866, F.B.C.O.P.R., point also having the X, Y coordinates of X = 3,036,478.64966, Y = 13,776,786.63360;

Thence, North 86^o17’49” East, 88.33 feet to a point in the westerly line of said property known as Ditch H for the POINT OF BEGINNING;

Thence, South 01^o50’48” East, 571.82 feet along the westerly line of said Ditch H property to a point;

Thence, South 01^o53’33” East, 59.54 feet to a point also being in the northerly Right-Of-Way line of State of Texas, Southwest Freeway/US 59, a 105 acre tract conveyed in Vol. 460, Page 73 of the F.B.C.D.R.;

Thence, South 02^o12’30” East, 445.00 feet crossing said State of Texas Right-Of-Way to a point in the southerly line of said State of Texas Right-Of-Way;

Thence, South 02^o28’47” East, 51.55 feet to a point also being the northwesterly corner of Fort Bend Levee Improvement District No. 2 (property known as Ditch H south of Southwest Freeway) conveyed in Vol. 1905, Page 1866, F.B.C.O.P.R.;

Thence, South 01^o51’34” East, 3,099.68 feet along the westerly line of said Levee Improvement District No. 2 property, to a point for a corner;

Thence, South 43^o45’06” West, 266.55 feet, to a point in the easterly line of a 282.8293 acre tract known as TxDOT Tract 5 which is a portion of a larger 326.826 acre Tract conveyed to NNP-Keepsake, L.P. by instrument of record in File No. 2003149525, F.B.C.O.P.R., said NNP-Keepsake, L.P. now known as NNP-Telfair LP;

Thence, South 18^o10’17” West, 1552.38 feet, to a point for a corner;

Thence, South 87^o27’59” West, a total of 1106.22 feet to a point, passing the westerly line of said TxDOT Tract 5 property at approximately 937 feet, point also being in the University Boulevard Right-Of-Way of TxDOT Tract 5, Part 9 tract;

Thence, South 70^o39’32” West, 160.59 feet, to a point for a corner in the westerly line of said TxDOT Tract 5, Part 9 property, and in the easterly line of TxDOT Tract 5, Part 2 property (167.4451 acre tract), and at the southeasterly corner of the TxDOT Tract 5, Ditch B, Corridor Part 2 property (2.3233 acre tract), and at the southeasterly corner of the TxDOT Tract 5, Part 2 property (8.576 acre tract);

Thence, South 28^o23’59” East, 2232.14 feet, to a point for a corner at the southerly point of said TxDOT Tract 5, Part 2 property (167.4451 acres) and at the southwesterly point of TxDOT Tract 5, Part 9 property (32.8006 acres);

Thence, with the southerly line of said 167.4451acre tract, the following fourteen (14)courses:

(1) North 70^o 18’02” West, 1334.47 feet, to a point for a corner;

(2) North 78^o27’00” West, 984.48 feet to a point for a corner;

(3) South 89^o03’00” West, 2420.38 feet to a point for a corner;

(4) North 77^o33’31” West, 444.81 feet to a point for a corner;

(5) North 33^o56’27” West, 856.78 feet to a point for a corner;

(6) North 42^o30’37” West, 10.3 feet to a point for a corner;

(7) North 47^o00’59” West, 7.3 feet to a point for a corner;

(8) North 51^o47’27” West, 8.93 feet to a point for a corner;

(9) North 57^o13’11” West, 11.07 feet to a point for a corner;

(10) North 62^o50’54” West, 9.87 feet to a point for a corner;

(11) North 68^o11’17” West, 7.92 feet to a point for a corner;

(12) North 72^o39’05” West, 7.91 feet to a point for a corner;

(13) North 77^o05’10” West, 7.92 feet to a point for a corner;

(14) North 81^o33’54” West, 411.78 feet to a point for a corner;

Thence , North 37^o51’56” West, 42.87 feet to a point for a corner also being in the southerly Right-Of-Way line of State of Texas, Southwest Freeway/US 59 a 105 acre tract conveyed in Vol. 460, Page 73 of the F.B.C.D.R.;

Thence, with the southerly line of the State of Texas, Southwest Freeway/US 59 Right-of-way line, the following three (3 ) courses:

(1) North 51^o03’15” East, 1569.18 feet to a point;

(2) North 55^o24’30” East, 73.62 feet to a point;

(3) North 52^o14’21” East, 1146.48 feet to a point also being the northwesterly corner of said TxDot Tract 5, Part 2 (167.4451 acre tract);

Thence, continuing along the southerly line of said Right-of-way and the northern line of said 167.4451 acre tract, North 52^o28’44” East, 490.56 feet to a point also being a northern interior corner of said 167.4457 acre tract;

Thence, continuing along the southerly line of said Right-of-way, North 53^o06’54” East, 268.32 feet to a point also being a northern interior corner of said 167.4457 acre tract;

Thence, continuing along the southerly line of said Right-of-way, North 57^o04’03” East, 121.95 feet to a point for a corner;

Thence, leaving the southerly line of said Right-of-way, North 44^o15’22” West, 425.47 feet across the said Right-of-way to a point in the northerly line of said Right-of-way;

Thence, North 43^o07’21” West, 50.30 feet to a point for a corner also being the southwesterly corner of a 43.1689 acre tract being a portion of the larger 1651.2390 acres tract known as Tract 4 and conveyed to NNP-Keepsake, L.P. by instrument of record in File No. 2003149525, F.B.C.O.P.R., said NNP-Keepsake, L.P. now known as NNP-Telfair LP, by instrument of record in File No. 2006007940, F.B.C.O.P.R. and point also being a southeasterly corner of a Fort Bend Levee Improvement District No. 17, 75 foot easement as conveyed in File No. 2004098301, F.B.C.O.P.R.;

Thence, along the westerly line of said 43.1689 acre tract and the easterly line of said 75 foot easement for the following three (3) courses:

(1) North 07^o30’41” East, 17.84 feet to a point for a corner;

(2) North 37^o54’43” West, 633.58 feet to a point for a corner;

(3) North 09^o39’23” East, 16.98 feet to a point for a corner;

Thence, North 37^o06’14” West, 81.57 feet to a point for a corner also being in the westerly line of the Alexander Hodge League, Abstract 32, Fort Bend County Texas and in the easterly line of the M.M. Battle League, Abstract 9, Fort Bend County Texas, and in the southerly Right-of-way line of Telfair Avenue (80 foot ROW) as dedicated in File No. 2006031721, F.B.C.O.P.R.;

Thence, continuing along the southerly line of said Telfair Avenue Right-of-way for the following eight (8) courses:

(1) North 52^o29’51” East, 855 feet to a point for a corner, the beginning of a curve;

(2) 605.15 feet along the arc of a tangent curve to the left having a radius of 890.00 feet, a central angle of 38^o57’29”, and a chord that bears North 33^o01’07” East, 593.56 feet to a point for a corner;

(3) North 13^o32’22” East, 100.00 feet to a point for a corner, the beginning of a curve;

(4) 1144.72 feet along the arc of a tangent curve to the right having a radius of 1173.00 feet, a central angle of 55^o54’52”, and a chord that bears North 41^o29’48” East, 1099.83 feet to a point for a corner, the beginning of a compound curve;

(5) 94.18 feet along the arc of a tangent curve to the right having a radius of 500.00 feet, a central angle of 10^o47’33”, and a chord that bears North 74^o51’00” East, 94.04 feet to a point for a corner;

(6) North 80^o14’47” East, 46.46 feet to a point for a corner, the beginning of a curve;

(7) 23.93 feet along the arc of a tangent curve to the left having a radius of 500.00 feet, a central angle of 02^o44’32”, and a chord that bears North 78^o52’31” East, 23.93 feet to a point for a corner, the beginning of a reverse curve;

(8) 89.13 feet along the arc of a tangent curve to the right having a radius of 1163.00 fee, a central angle of 04^o23’28”, and a chord that bears North 79^o41’59” East, 89.11 feet to a point for a corner;

Thence, North 83^o16’56” East, 256.43 feet to a point for a corner, crossing University Boulevard Phase One, a subdivision of record in Plat No. 20060062, F.B.C.O.P.R. and being a point in the westerly line of a 32.8515 acre tract being a portion of a said larger 1651.2390 acre tract known as Tract 4 and conveyed to NNP-Telfair LP;

Thence, along the westerly line of said 32.8515 acre tract, North 04^o05’25” West, 1245.21 feet to a point for a corner being in the southerly line of a 86.591 acre tract conveyed to Fort Bend County Levee Improvement District No. 17 by instrument of record in File No. 2008014459, F.B.C.O.P.R.;

Thence, with the south line of said 86.591 acre tract, the following fourteen (14) courses:

(1) North 41^o01’49” East, 18.53 feet to a point for a corner;

(2) North 86^o01’52” East, 113.38 feet to a point for a corner, the beginning of a curve;

(3) 117.43 feet along the arc of a non-tangent curve to the right, having a radius of 52.05 feet, a central angle of 129^o15’49” and a chord which bears North 60^o47’05” East, 94.07 feet to a point for corner, the beginning of a curve;

(4) 21.60 feet along the arc of a non-tangent curve to the left, having a radius of 25.00 feet, a central angle of 49^o30’25” and a chord which bears South 79^o12’54” East, 20.94 feet to a point for a corner;

(5) North 76^o01’52” East, 218.24 feet to a point for a corner, the beginning of a curve;

(6) 104.56 feet along the arc of a tangent curve to the right, having a radius of 325.00 feet, a central angle of 18^o25’58” and a chord which bears North 85^o14’51” East, 104.11 feet to a point for a corner;

(7) North 04^o27’50” East, 122.55 feet to a point for a corner;

(8) North 54^o38’52” East, 19.21 feet to a point for a corner;

(9) South 76^o52’06” East, 37.14 feet to a point for a corner;

(10) South 75^o05’10” East, 727.09 feet to a point for a corner;

(11) South 75^o58’52” East, 80.04 feet to a point for a corner;

(12) South 75^o03’01” East, 300.11 feet to a point for a corner, the beginning of a curve;

(13) 241.59 feet along the arc of a non-tangent curve to the left, having a radius of 1043.12 feet, a central angle of 13^o16’11” and a chord which bears South 83^o17’11” East, 241.05 feet to a point for a corner;

(14) North 88^o09’19” East, 379.99 feet to the most easterly, northeast corner of said 86.591 acre tract and being the northwesterly corner of a 1.385 acre tract, Part 1 conveyed to Fort Bend Levee Improvement District No. 17 in File No. 2004108739, F.B.C.O.P.R.;

Thence, with the north line of said 1.385 acre tract, North 89^o44’19” East, 89.89 feet to a point for a corner and being the northeasterly corner of said 1.385 acre tract;

Thence, North 84^o52’55” East, 90.83 feet to the POINT OF BEGINNING and containing 701.9 acres of land.