Loading...
HomeMy WebLinkAbout12/13/2012 - Regular Agenda Packet - City CouncilTable of Contents Agenda 3 Consent No. 2a - Minutes Coversheet revised 7 Workshop 8 Regular 14 Special 20 Consent No. 2b - Charter certification Coversheet revised 24 Draft Ordinance 25 Consent No. 2c - Council calendar Coversheet revised 62 2013 Council Calendar 63 Consent No. 2d - Mobile Food Vendor Ordinance Amendment Coversheet revised 64 Redline Version of Ordinance 65 Ordinance 66 Consent No. 2e - Health Plan Stop Loss Renewal Coversheet revised 68 Consultant Recommendation Letter 69 Stop Loss Application 71 Consent No. 2f - 2013 Basic & Voluntary Life Insuance and AD&D Coversheet revised 76 New Customer Verification Guide 77 Consent No. 2g - Enterprise Resource Planning Upgrade/Replacement Consultant Services Coversheet revised 95 Consent No. 2h - Annual Pricing Agreement for Steel, Fiberglass and Concrete Electric Distribution Poles Coversheet revised 96 Bid Tabulation 97 Consent No. 2i - Debt Reimbursement Resolution for Rock Prairie Road Rehabilitation (Bird Pond Road to W.D. Fitch Parkway) Coversheet revised 98 Resolution 99 Consent No. 2j - Delegation to City Manager to Approve and Execute Various Documents Coversheet revised 102 Resolution 103 Consent No. 2k - Barron Road Widening Phase 2 Landscaping Project Number ST 10-26 Coversheet revised 104 Bid Tabulation 105 1 Consent No. 2L - Project Number PK-0906 Creek View Neighborhood Park Project and a Resolution Declaring Intention to Reimburse Certain Expenditures with Proceeds From Debt Coversheet revised 106 Change Order No. 3 107 Location Map 108 Debt Reimbursement Resolution 109 Regular No. 1 - Public Hearing on the Buena Vida Subdivision Parking Removal Coversheet revised 112 Ordinance 113 Map 115 Regular No. 2 - Public Hearing for the College Station Tax Increment Reinvestment Zone #18 Coversheet revised 116 Ordinance 117 Regular No. 3 - Public Hearing on the College Station Tax Increment Reinvestment Zone #19 Coversheet revised 192 Ordinance 193 Regular No. 4 - Public Hearing on the College Station Municipal Management District #1 (West) Coversheet updated 269 Description 270 Regular No. 5 - Public Hearing on the College Station Municipal Management District #2 (East) Coversheet updated 276 Description 277 2 CrTYOr COllEGE STATION Home a/Texas A&M University'Mayor Council members Nancy Berry Blanche Brick Mayor Pro Tern Jess Fields Karl Mooney John Nichols City Manager Julie M. Schultz David Neeley James Benham Agenda College Station City Council Regular Meeting Thursday, December 13,2012 at 7:00 PM City Hall Council Chamber, 1101 Texas Avenue College Station, Texas 1. Pledge of Allegiance, Invocation, Consider absence request. Hear Visitors: A citizen may address the City Council on any item which does not appear on the posted Agenda. Registration forms are available in the lobby and at the desk of the City Secretary. This form should be completed and delivered to the City Secretary by 5:30 pm. Please limit remarks to three minutes. A timer alarm will sound after 2 112 minutes to signal thirty seconds remaining to conclude your remarks. The City Council will receive the information, ask staff to look into the matter, or place the issue on a future agenda. Topics of operational concerns shall be directed to the City Manager. Comments should not personally attack other speakers, Councilor staff. Consent Agenda At the discretion of the Mayor, individuals may be allowed to speak on a Consent Agenda Item. Individuals who wish to address the City Council on a consent agenda item not posted as a public hearing shall register with the City Secretary prior to the Mayor's reading of the agenda item. Registration forms are available in the lobby and at the desk of the City Secretary. 2. Presentation, possible action and discussion of consent agenda items which consists of ministerial or "housekeeping" items required by law. Items may be removed from the consent agenda by majority vote of the Cou.ncil. a. Presentation, possible action, and discussion of minutes for: • November 19,2012 Workshop • November 19,2012 Regular Council Meeting • December 4,2012 Special Meeting b. Presentation, possible action, and discussion regarding an ordinance approving the renumbering and rearrangement of the City Charter, as necessary, and authorizing the Mayor to certify and submit to the Secretary of State of the State of Texas an authenticated copy of the amended Home Rule Charter for the city of College Station, certifying that the Home Rule Charter was approved by the registered voters of the City of College Station at a special election held on November 6, 2012 and was accepted on their behalf by the City Council of the City of College Station by Ordinance no. 2012-3460 on November 19,2012. City Council Regular Meeting Page 2 Thursday, December 13, 2012 c. Presentation, possibte action, and discussion regarding adoption of the 2013 Annual Council Calendar. d. Presentation, possible action and discussion regarding an ordinance amending Chapter 4 "Business Regulations" Section 20 "Mobile Food Vendors", B "Permit and Application", 4 "Permit Form", (N), of the Code of Ordinance of the City of College Station. e. Presentation, possible action, and discussion on renewing the Stop Loss reinsurance for the City's self­ funded health plan with Blue Cross and Blue Shield of Texas (BCBS) for the period of January 1, 2013 through December 31,2013. The estimated annual premiums are $569,232. f. Presentation, possible action and discussion regarding a new policy for employee life, accidental death & dismemberment (AD&D), voluntary life and AD&D, and dependent life insurance with Mutual of Omaha. Projected annual City cost is $93,000.00. g. Presentation, possible action, and discussion regarding approval of a contract between the City of College Station and BerryDunn in the amount of $95,195.00 for the purposes of conducting an analysis of the current software and recommend alternatives and authorizing the City Manager to execute the contract on behalf of the City Council. (This item is also on workshop agenda item #6). h. Presentation, possible action, and discussion on a bid award for the purchase of steel, fiberglass, and concrete electric distribution poles to TransAmerican Power Products, Inc. $96,725.00; HD Supply Utilities $160,936.40; Stress Crete, Inc $208,231.00; and RS Technologies, Inc $17,724.66 for a total of $483,617.06. 1. Presentation, possible action, and discussion regarding approval of a resolution declaring intention to reimburse certain expenditures with proceeds from debt for the Rock Prairie Road Rehabilitation (Bird Pond Road to W.D. Fitch Parkway) project. J. Presentation, possible action and discussion regarding a resolution delegating authority to the City Manager to approve and execute various documents of a routine nature on behalf of the City to conduct the daily affairs of the City. k. Presentation, possible action, and discussion regarding approval of a contract between the City of College Station and Texas Landscape Creations in the amount of $101,945.98 for the Barron Road Phase 2 Landscaping project and authorizing the City Manager to execute the contract on behalf of the City Council. 1. Presentation, possible action, and discussion regarding a change order to professional services contract #09­ 233 with Mitchell & Morgan, LLP in the amount of $41,500.00, and approval of a resolution declaring intention'to reimburse certain expenditures with proceeds from debt. Regular Agenda At the discretion of the Mayor, individuals may be allowed to speak on a Regular Agenda Item. Individuals who wish to address the City Council on a regular agenda item not posted as a public hearing shall register with the City Secretary prior to the Mayor's reading of the agenda item. Registration forms are available in the lobby and at the desk of the City Secretary. Individuals who wish to address the City Council on an item posted as a public hearing shall register with the City Secretary prior to the Mayor's announcement to open the public hearing. The Mayor will recognize individuals who wish to come forward to speak for or against the item. The speaker will state their name and address for the record and allowed three minutes. A timer alarm will sound at 2 112 minutes to signal thirty City Council Regular Meeting Page 3 Thursday, December 13,2012 -seconds remaining to conclude remarks. After a public hearing is closed, there shall be no additional public comments. If Council needs additional information from the general public, some limited comments may be allowed at the discretion of the Mayor. If an individual does not wish to address the City Council, but still wishes to be recorded in the official minutes as being in support or opposition to an agenda item, the individual may complete the registration form provided in the lobby by providing the name, address, and comments about a city related subject. These comments will be referred to the City Council and City Manager. 1. Public Hearing, presentation, possible action and discussion of an ordinance amending Chapter 10 "Traffic Code", to remove parking along specific streets in the Buena Vida Subdivision. 2. Public Hearing, presentation, possible action and discussion regarding an Ordinance designating the western portion of the College Station Medical District as Reinvestment Zone Number 18, City of College Station, Texas, Enumerating the qualifying criteria, adopting a preliminary development and financing plan, and establishing a Board of Directors for such Zone, and other matters relating thereto. 3. Public Hearing, presentation, possible action and discussion regarding an Ordinance designating the Eastern portion of the College Station Medical District as Reinvestment Zone Number 19, City of College Station, Texas, Enumerating the qualifying criteria, adopting a preliminary development and financing plan, and establishing a Board of Directors for such Zone, and other matters relating thereto. 4. Public Hearing, presentation, possible action and discussion regarding review and development of a Resolution of the City of College Station supporting Legislation to create the "Rock Prairie Medical District Municipal Management District Number One" and the associated draft Legislation. 5. Public Hearing, presentation, possible action and discussion regarding review and development of a Resolution of the City of College Station supporting Legislation to create the "Rock Prairie Medical District Municipal Management District Number Two" and the associated draft Legislation. 6. Adjourn. If litigation issues arise to the posted subject matter of this Council Meeting an executive session will be held. APP[@CitY~ Notice is hereby given that a Regular Meeting of the City Council of the City of College Station, Texas will be held on the Thursday, December 13,2012 at 7:00 PM at the City Hall Council Chambers, 1101 Texas Avenue, College Station, Texas. The following subjects will be discussed, to wit: See Agenda. City Council Regular Meeting Page 4 Thursday, December 13,2012 I, the undersigned, do hereby certify that the above Notice of Meeting of the Governing Body of the City of College Station, Texas, is a true and correct copy of said Notice and that I posted a true and correct copy of said notice on the bulletin board at City Hall, 1101 Texas Avenue, in College Station, Texas, and the City's website, www.cstx.gov.TheAgendaandNoticearereadilyaccessibletothegeneralpublicatalltimes.Said Notice and Agenda were posted on December 7, 2012 at 5:00 p.m. and remained so posted continuously for at least 72 hours proceeding the scheduled time of said meeting. This public notice was removed from the official posting board at the College Station City Hall on the following date and time: by ___________ Dated this of ,2012 By-----."-~ ------------------------------­ Subscribed and sworn to before me on this the __day of _______, 2012. Notary Public -Brazos County, Texas . My commission expires: _____ The building is wheelchair accessible. Handicap parking spaces are available. Any request for sign interpretive service must be made 48 hours before the meeting. To make arrangements call (979) 764-3517 or (TDD) 1-800-735-2989. Agendas may be viewed on www.cstx.gov. Council meetings are broadcast live on Cable Access Channel 19. December 13, 2012 City Council Consent Agenda Item No. 2a City Council Minutes To: David Neeley, City Manager From: Sherry Mashburn, City Secretary Agenda Caption: Presentation, possible action, and discussion of minutes for: • November 19, 2012 Workshop • November 19, 2012 Regular Council Meeting • December 4, 2012 Special Meeting Attachments: • November 19, 2012 Workshop • November 19, 2012 Regular Council Meeting • December 4, 2012 Special Meeting 7 WKSHP111912 Minutes Page 1 MINUTES OF THE CITY COUNCIL WORKSHOP CITY OF COLLEGE STATION NOVEMBER 19, 2012 STATE OF TEXAS § § COUNTY OF BRAZOS § Present: Nancy Berry, Mayor Council: Blanche Brick Jess Fields Karl Mooney, arrived after roll call Katy-Marie Lyles Julie Schultz, absent Dave Ruesink James Benham John Nichols City Staff: David Neeley, City Manager Frank Simpson, Deputy City Manager Kathy Merrill, Deputy City Manager Carla Robinson, City Attorney Sherry Mashburn, City Secretary Tanya McNutt, Deputy City Secretary 1. Call to Order and Announce a Quorum is Present With a quorum present, the Workshop of the College Station City Council was called to order by Mayor Nancy Berry at 4:03 p.m. on Monday, November 19, 2012 in the Council Chambers of the City of College Station City Hall, 1101 Texas Avenue, College Station, Texas 77842. 2. Presentation, possible action, and discussion of Ordinance 2012-3460, of the City Council of the City of College Station, Texas, canvassing returns and declaring results of the special election, held on November 6, 2012, for the purpose of submitting proposed amendments to the City Charter to the voters. Presentaciόn, posible acci6n y discusi6n acerca de una ordenanza del consejo de la ciudad de College Station, Texas, para escrutinar los resultados de los votos y declarando los resultados de las elecciones especiales celebradas el 6 de noviembre de 2012, para el propόsito de presentarles a los votantes las enmiendas propuestas a los estatutos de la ciudad. 8 WKSHP111912 Minutes Page 2 MOTION: Upon a motion made by Councilmember Fields and a second by Councilmember Lyles, the City Council voted five (5) for and none (0) opposed, with Councilmember Mooney not yet present, to approve Ordinance 2012-3460, canvassing returns and declaring results of the special election, held on November 6, 2012, for the purpose of submitting proposed amendments to the City Charter to the voters. The motion carried unanimously. 3. Issuance of Certificates of Election to elected City Council Member Place 4 and City Council Member Place 6; and administer Oaths of Office. Judge Spillane administered the oath of office to John Nichols, newly elected Councilmember, Place 4, and James Benham, newly elected Councilmember, Place 6. The Workshop recessed briefly for a reception honoring outgoing Councilmembers Lyles and Ruesink and to welcome newly elected Councilmembers Nichols and Benham. 4. Executive Session In accordance with the Texas Government Code §551.071-Consultation with Attorney, §551.074-Personnel, and §551.087-Economic Development Negotiations, the College Station City Council convened into Executive Session at 4:57 p.m. on Monday, November 19, 2012 in order to continue discussing matters pertaining to: A. Consultation with Attorney to seek advice regarding pending or contemplated litigation; to wit: • City of Bryan's application with TCEQ for water & sewer permits in Westside/Highway 60 area, near Brushy Water Supply Corporation to decertify City of College Station and certify City of Bryan. • Chavers et a1 v. Tyrone Morrow et al, No. 10-20792; Chavers v. Randall Hall et al, Case No. 10 CV-3922. • College Station v. Star Insurance Co., Civil Action No. 4:11-CV-02023. • Shirley Maguire and Holly Maguire vs. City of College Station, Cause No. 11-0025 16- CV-272, in the 272nd District Court of Brazos County, Texas. • Patricia Kahlden, individ. and as rep. of the Estate of Lillie May Williams Bayless v. Laura Sue Streigler, City of College Station and James Steven Elkins, No. 11-003172- CV-272, in the 272ndDistrict Court of Brazos County, TX • Tom Jagielski v. City of College Station, Cause No. 12-002918-CU-361, In the 361 st • State v. Carol Arnold, Cause Number 11-02697-CRF-85, In the 85th District Court, Brazos County, Texas District Court of Brazos County, Texas B. Deliberation on the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer; to wit: • Council Self-evaluation C. Deliberation on economic development negotiations regarding an offer of financial or other incentives for a business prospect; to wit: 9 WKSHP111912 Minutes Page 3 • Economic development incentives to prospect in West College Station. The Executive Session adjourned at 5:42 p.m. 5. Take action, if any, on Executive Session. No action was required from Executive Session. 6. Presentation, possible action, and discussion on the election of Mayor Pro Tempore. MOTION: Upon a motion made by Councilmember Fields and a second by Councilmember Nichols, the City Council voted six (6) for and none (0) opposed, to elect Karl Mooney as Mayor Pro Tem. The motion carried unanimously. 7. Presentation, possible action, and discussion on items listed on the consent agenda. Items 2c, 2d, 2e, 2p, and 2q were pulled. 2c: Councilmember Brick stated she hoped there was some way for admission to the College Station 75th Anniversary Exhibit to be free for citizens. Jeff Kersten, Executive Director of Fiscal Services, stated the current funding agreement covers things of this nature. 2d: Councilmember Brick will be abstaining from the discussion and vote. 2e: Councilmember Brick stated the Veterans Park is a treasure to the City, and the event honoring our veterans was very well attended. 2p: Chuck Gilman, Director of Capital Projects, clarified the dollar amount is an estimate and was developed by licensed brokers and appraisers. 2q: Chuck Gilman, Director of Capital Projects, reported the speed limit will be reduced from 70 mph to 60 mph in the construction zone on SH 6. 8. Presentation, possible action and discussion regarding an update on the Brazos Valley Bowl. Dr. Ted Raspiller, President, Blinn College Brazos County Campuses, announced the Brazos Valley Bowl, featuring Kilgore College vs. Northwest Mississippi College, will take place at noon on December 1 at Kyle Field. Teams will arrive on Thursday and will attend an evening banquet at the Expo Center. Many activities are planned for Friday including team practice, community service, and a spouse tour of the Bush Library. There will be a VIP tailgate brunch at Freedom Park on Saturday. Sponsors include Blinn College, City of College Station, Bryan/College Station Convention & Visitors Bureau, and the George Bush Presidential Library and Museum. Local businesses are also providing their support. Tickets are free to students with a student ID. Tickets are $5 at the gate and are also available online. 10 WKSHP111912 Minutes Page 4 9. Presentation and discussion regarding the update of the 2012 Christmas at the Creek event. Amy Atkins, Assistant Director of Parks and Recreation, reported that Central Park will be lighted November 22 through January 1 and is designed as a drive through. Lighting at Wolf Pen Creek will be November 30 through January 1. Kelley Kelbly, Recreation Supervisor, stated that activities at Wolf Pen Creek are scheduled for November 30, December 1, 7, and 8 from 6:00 p.m. to 9:00 p.m. each night. Friday, November 30, will feature the Sounds of Christmas with local dance groups and choirs. New this year will be an original Christmas at the Creek Musical, written by local composer, Mark Taylor. It will be performed every hour, on the hour on Saturday, December 1. The theme for Friday, December 7, is a Gospel Christmas with community dance groups and local gospel choirs. Saturday, December 8, is Movie and Pet Night, featuring How the Grinch Stole Christmas- Animated and Polar Express. Santa will be available for pet photos as well. Continuing with the holiday celebration, the Mayor’s Reception is scheduled for Friday, November 30, 6:00 p.m. to 9:00 p.m. Attendees may come and go at their leisure. The Bryan/College Station Christmas Parade is set for Sunday, December 2, and local officials will join in on a Holiday Howdy Hayride. 10. Presentation, possible action and discussion regarding an update on the issues facing the 2013 Legislative Session and the City's Legislative Plan. Dan Shelley and Jennifer Rodriguez, consultants, announced the 83rd Texas Legislature will convene Tuesday, January 8, 2013. Local representatives are State Senator, Dr. Charles Schwertner, Georgetown; State Representative, John Raney, Bryan; and State Representative, Kyle Kacal, Bryan. March 8 is the deadline for filing bills and joint resolutions other than local bills, emergency appropriations, and bills that have been declared an emergency by the governor. Staff has identified legislative issues to watch for and will monitor those issues. Water will be a major issue for cities throughout Texas. The consultants will review and monitor bills filed and will provide to City staff. Staff will alert Council whenever issues directly affecting the City occur so that Council may take initiative. Council recessed the workshop at 7:04 p.m. Council reconvened the workshop at 8:32 p.m. 11. • Council Calendar Nov. 20 • Chamber -Ag Breakfast at the Brazos County Expo Center, 7:00 a.m. Nov. 20 • MPO Reception, Brazos County Administration Building (Atrium), 3:00 p.m. • Nov. 22-23 City Offices Closed -HOLIDAY Nov. 26 Council Orientation in Council Chambers at 9:00 a.m. 11 WKSHP111912 Minutes Page 5 • • Nov. 27-Dec. 1 National League of Cities at 8:00 a.m. Nov. 30 • Christmas at the Creek at Wolf Pen Creek Park -1015 Colgate Drive, 6:00 Dec. 2 • BCS Christmas Parade, Meeting Location -City Hall at 12:00 p.m. Dec. 4 • Special Council Workshop on MMD and TIRZ, 1 :00 p.m. Dec. 6 P&Z Workshop/Meeting in Council Chambers, 6:00 p.m. (Jess Fields, Tentative and Karl Mooney as back up, Liaison) • Dec. 10 • Annual Holiday RVP Open House at RVP, 5:30 p.m. Dec. 13 City Council Employee Recognition/Executive Session/Workshop/Regular • Meeting at 4:00, 5:00, 6:00 & 7:00 p.m. Dec. 15 Fire Station 6 Opening Ceremony, the corner of University Dr. & Tarrow Rd, 11 :00 a.m. Council reviewed the Council calendar. 12. Presentation, possible action, and discussion on future agenda items: a Council Member may inquire about a subject for which notice has not been given. A statement of specific factual information or the recitation of existing policy may be given. Any deliberation shall be limited to a proposal to place the subject on an agenda for a subsequent meeting. Councilmember Nichols asked to discuss future items for the Strategic Planning workshop. He also asked to add an item addressing the past budget cuts in Parks and Recreation and where we are going next. Councilmember Fields asked to add to the Strategic Planning workshop an item discussing healthcare costs affected by the Healthcare Act. He also asked to look at the cost benefit of outsourcing the solid waste collection operation. There was no consensus on this item. 13. Discussion, review and possible action regarding the following meetings: Animal Shelter Board, Arts Council of the Brazos Valley, Arts Council Sub-committee, Audit Committee, Bicycle, Pedestrian, and Greenways Advisory Board, Blinn College Brazos Valley Advisory Committee, Brazos County Health Dept., Brazos Valley Council of Governments, Bryan/College Station Chamber of Commerce, BVSWMA, BVWACS, Convention & Visitors Bureau, Design Review Board, Historic Preservation Committee, Interfaith Dialogue Association, Intergovernmental Committee, Joint Neighborhood Parking Taskforce, Joint Relief Funding Review Committee, Landmark Commission. Library Board, Metropolitan Planning Organization, National League of Cities, Parks and Recreation Board, Planning and Zoning Commission, Research Valley Partnership, Regional Transportation Committee for Council of Governments, Sister City Association, TAMU Student Senate, Texas Municipal League, Youth Advisory Council, Zoning Board of Adjustments. Councilmember Benham reported on sessions he attended at the TML Annual Conference: Proactive Code Enforcement and Holding Successful Community Meetings. 12 WKSHP111912 Minutes Page 6 Mayor Berry reported on the Intergovernmental Meeting, TML Annual Conference, and the RVP. Councilmember Mooney reported on the Executive Board meeting of the CVB. 14. Adjournment MOTION: There being no further business, Mayor Berry adjourned the workshop of the College Station City Council at 8:42 p.m. on Monday, November 19, 2012. ________________________ Nancy Berry, Mayor ATTEST: _______________________ Sherry Mashburn, City Secretary 13 RM111912 Minutes Page 1 MINUTES OF THE REGULAR CITY COUNCIL MEETING CITY OF COLLEGE STATION NOVEMBER 19, 2012 STATE OF TEXAS § § COUNTY OF BRAZOS § Present: Nancy Berry Council: Blanche Brick Jess Fields Karl Mooney John Nichols Julie Schultz, absent James Benham City Staff: David Neeley, City Manager Frank Simpson, Deputy City Manager Kathy Merrill, Deputy City Manager Carla Robinson, City Attorney Sherry Mashburn, City Secretary Tanya McNutt, Deputy City Secretary Call to Order and Announce a Quorum is Present With a quorum present, the Regular Meeting of the College Station City Council was called to order by Mayor Nancy Berry at 7:05 p.m. on Monday, November 19, 2012 in the Council Chambers of the City of College Station City Hall, 1101 Texas Avenue, College Station, Texas 77842. 1. Pledge of Allegiance, Invocation, consider absence request . Presentation of The Brazos Boot trophy, officially marking A&M Consolidated 2012 football victory over Bryan High School. Hugh Walker, Assistant City Manager, Bryan, presented the Brazos Boot to Mayor Nancy Berry. Citizen Comments 14 RM111912 Minutes Page 2 Ann Boehm, 1911 Langford, stated she would like the Council to explore the opportunity to re- seed an existing project already underway, the Bee Creek sewer project, with milkweed seeds and wildflower seeds for beautification. She noted that Monarch butterfly numbers are dropping drastically, and she wants to help increase those numbers. She would also like to see an accessible walking trail for citizens and students. Mayor Berry introduced the new Executive Director of MPO, Brad McCaleb. CONSENT AGENDA 2a. • Presentation, possible action, and discussion of minutes for: • November 8, 2012 Workshop November 8, 2012 Regular Council Meeting 2b. Presentation, possible action and discussion on approving the budget of the Arts Council of the Brazos Valley, and; presentation, possible action and discussion on approving the agreement between the City of College Station and the Arts Council of the Brazos Valley for FY13 in the amount of $266,648 for Affiliate funding and Annual Program and Marketing funding. 2c. Presentation, possible action, and discussion on approving the budget of the George Bush Presidential Library Foundation; and presentation, discussion and possible action on a funding agreement between the City of College Station and the George Bush Presidential Library Foundation for FY13 in the amount of $69,852. 2d. Presentation, possible action, and discussion on approving the budget of the Brazos Valley Bowl; and presentation, discussion and possible action on a funding agreement between the City of College Station and the Brazos Valley Bowl Association for FY13 in the amount of $25,000. 2e. Presentation, possible action, and discussion on approving the budget of the Memorial for all Veterans of the Brazos Valley; and presentation, discussion and possible action on a funding agreement between the City of College Station and the Memorial for all Veterans of the Brazos Valley for FY 13 in the amount of $38,500. 2f. Presentation, possible action, and discussion regarding the approval of the FY Forfeiture Audit reporting form for the College Station Police Department. 12 Chapter 59 Asset Forfeiture Audit reporting form for the College Station Police Department. 2g. Presentation, possible action, and discussion on the purchase of five (5) Police motorcycles from Independence Harley Davidson (College Station, TX) for the amount of $88,738.90 and the trade-in of six (6) existing 2010 Police Edition motorcycles for $8,000 each. (Bid No. 13-005) 2h. Presentation, possible action and discussion regarding the approval of Resolution 11- 19-12-2h to update the Interlocal Agreement for Emergency Medical Ambulance Service to 15 RM111912 Minutes Page 3 respond to emergencies in Brazos County and to establish the annual fee for FY 2013 at $161,648. 2i. Presentation, possible action, and discussion regarding Resolution 11-19-12-2i, an annual price agreement with Daco Fire Equipment, in the amount of $60,375.00 for fire protective clothing. 2j. Presentation, possible action and discussion regarding approval of a contract renewal between the City of College Station and Brenco Marketing Corporation in the amount of $1,650,000.00 for annual estimated purchases of gasoline and diesel fuel (Contract #10-054) and authorizing the City Manager to execute the contract renewal on behalf of the City Council. 2k. Presentation, possible action and discussion regarding an Interlocal Agreement between the City of College Station and Robertson County for the sale of city surplus equipment in the amount of $120,000.00. 2l. Presentation, possible action and discussion on a bid award for the purchase of single phase pad-mounted distribution transformers maintained in inventory to KBS for a total of $70,524.00. 2m. Presentation, possible action, and discussion regarding the approval of the construction contract (Contract 13-007) with Knife River in the amount of $645,977.00, for the construction and installation of the State Highway 30/Copperfield Traffic Signal, and authorizing the City Manager to execute the contract on behalf of the City Council. 2n. Presentation, possible action and discussion regarding the approval of four Master Agreements for Real Estate Appraisal Services: S.T. Lovett & Associates (Contract No. 13- 040); Integra Realty Resources Houston (Contract No. 13-041); Atrium Real Estate Services (Contract No. 13-042); Integra Realty Resources - Austin (Contract No. 13-043), and authorizing the City Manager or his designee to approve Service Orders for eaqch project within the terms of each Master Agreement. 2o. Presentation, possible action, and discussion regarding annual renewal of bid #11-69 to Knife River for the purchase of Type D Hot Mix Asphalt for the maintenance of streets in an amount not to exceed $1,260,000 ($62.00 per ton). 2p. Presentation, possible action, and discussion regarding approval of an Resolution 11- 19-12-2p, an Amendment to a Resolution that will authorize City staff to negotiate for the purchase of easements needed for the Royder/Live Oak Sewer Extension Project. 2q. Presentation, possible action, and discussion on Ordinance 2012-3461, amending Chapter 10, Section 3, of the College Station Code of Ordinances by changing the posted speed limit temporarily on the section of State Highway 6 between the north City Limit line and FM 2818 to 60 mph for the duration of a Texas Department of Transportation project to reconstruct the SH 6 entrance and exit ramps along the highway. 16 RM111912 Minutes Page 4 Items 2b, 2c, 2d were pulled from the Consent Agenda. MOTION: Upon a motion made by Councilmember Mooney and a second by Councilmember Nichols, the City Council voted six (6) for and none (0) opposed, to approve the Consent Agenda, less items 2b, 2c, and 2d The motion carried unanimously. (2b, 2c)MOTION: Upon a motion made by Councilmember Mooney and a second by Councilmember Nichols, the City Council voted five (5) for and one (1) opposed, with Councilmember Fields voting against, to approve the budget of the Arts Council of the Brazos Valley and the agreement between the City of College Station and the Arts Council of the Brazos Valley for FY13 in the amount of $266,648 for Affiliate funding and Annual Program and Marketing funding; and to approve the budget of the George Bush Presidential Library Foundation and the funding agreement between the City of College Station and the George Bush Presidential Library Foundation for FY13 in the amount of $69,852. The motion carried. (2d)MOTION: Upon a motion made by Councilmember Mooney and a second by Councilmember Nichols, the City Council voted four (4) for and one (1) opposed, with Councilmember Fields voting against and Councilmember Brick abstaining, to approve the budget of the Brazos Valley Bowl; and presentation, discussion and possible action on a funding agreement between the City of College Station and the Brazos Valley Bowl Association for FY13 in the amount of $25,000. The motion carried. REGULAR AGENDA 1. Presentation, possible action, and discussion on the adoption of Ordinance 2012-3462, creating Reinvestment Zone #17 for commercial tax abatement in the College Station Medical District. MOTION: Upon a motion made by Councilmember Benham and a second by Councilmember Mooney, the City Council voted five (5) for and one (1) opposed, with Councilmember Fields voting against, to adopt Ordinance 2012-3462, creating Reinvestment Zone #17 for commercial tax abatement in the College Station Medical District. The motion carried. 2. Presentation, possible action, and discussion regarding an economic development agreement between the City and Strategic Behavioral Health. 3. Presentation, possible action, and discussion regarding a tax abatement agreement between the City and Strategic Behavioral Health. Items 2 and 3 were considered together. MOTION: Upon a motion made by Councilmember Mooney and a second by Councilmember Nichols, the City Council voted five (5) for and one (1) opposed, with Councilmember Fields voting against, to adopt an economic development agreement and a tax abatement agreement between the City and Strategic Behavioral Health. The motion carried. 17 RM111912 Minutes Page 5 4. Public Hearing, presentation, possible action, and discussion on Ordinance 2012-3463, amending the College Station Comprehensive Plan – Future Land Use & Character Map from General Suburban to Suburban Commercial for the property located at 1402 Earl Rudder Freeway South; approximately 1.27 acres at the northwest corner of Earl Rudder Freeway South and University Oaks Boulevard. At approximately 7:55 p.m., Mayor Berry opened the Public Hearing. Paul Martinez, 1222A April Bloom, asked the Council to consider the long term impact this decision will have on the neighborhood. The Comprehensive Plan addresses community character and neighborhood integrity and needs to be considered. He is concerned with the degradation of the property values and the neighborhood generally. The east side is the anchor of the neighborhood, and property values could be adversely affected, creating more rental. Michael Kriger, 1403 Tara Court, stated his property is the largest property against the boundary. He and his family moved here twenty years ago chosen because of its rustic nature within city limits. The location is excellent, and a person can get anywhere quickly. This is a nice enclosed neighborhood with trees, and he can see the stars at night. If a building goes up, and lights along with it, it will impact the area. Mark Cogwin, 1212 Neal Pickett, echoed the previous speakers. He noted that if an office building is placed there, he will see siding and windows and the highway, instead of the trees. Sherry Ellison, 2705 Brookway Drive, stated the first southernmost four homes will lose the wooded buffer if any of that land is used for a driveway. It will also affect other homes, but particularly those four. The property can possibly be used for a retention pond, and there has to be a place to park and egress/ingress available for the frontage road. The Council passed in September the suburban commercial as a land use designation. Once this amendment is approved, the Council says that a wide range of things are okay. There need to be a lot of conditions that include keeping the trees behind those first four homes and a buffer of trees for the next homes up. Creative development is in order in order to not invade the homes. She asked the Council to consider this whenever a future re-zoning request comes forward. There being no further comments, the Public Hearing was closed at 8:05 p.m. MOTION: Upon a motion made by Councilmember Fields and a second by Councilmember Benham, the City Council voted six (6) for and none (0) opposed, to adopt Ordinance 2012- 3463, amending the College Station Comprehensive Plan – Future Land Use & Character Map from General Suburban to Suburban Commercial for the property located at 1402 Earl Rudder Freeway South; approximately 1.27 acres at the northwest corner of Earl Rudder Freeway South and University Oaks Boulevard. The motion carried unanimously. 5. Presentation, possible action, and discussion on appointments of City Council and Planning & Zoning Commission members to the BioCorridor Board. 18 RM111912 Minutes Page 6 MOTION: Upon a motion made by Councilmember Mooney and a second by Mayor Berry, the City Council voted six (6) for and none (0) opposed, to appoint Councilmember Nichols to the BioCorridor Board. The motion carried unanimously. MOTION: Upon a motion made by Councilmember Benham and a second by Councilmember Mooney, the City Council voted six (6) for and none (0) opposed, to appoint P&Z Commissioners Miles and Gay to the BioCorridor Board. The motion carried unanimously. 6. Adjournment. MOTION: There being no further business, Mayor Berry adjourned the Regular Meeting of the City Council at 8:28 p.m. on Monday, November 19, 2012. ________________________ Nancy Berry, Mayor ATTEST: ___________________________ Sherry Mashburn, City Secretary 19 SM120412 Minutes Page 1 MINUTES OF THE SPECIAL CITY COUNCILMEETING CITY OF COLLEGE STATION DECEMBER 4, 2012 STATE OF TEXAS § § COUNTY OF BRAZOS § Present: Nancy Berry Council: Blanche Brick Jess Fields Karl Mooney John Nichols Julie Schultz James Benham City Staff: David Neeley, City Manager Kathy Merrill, Deputy City Manager Frank Simpson, Deputy City Manager Carla Robinson, City Attorney Sherry Mashburn, City Secretary 1. Call to Order and Announce a Quorum is Present With a quorum present, the Special Meeting of the College Station City Council was called to order by Mayor Nancy Berry at 1:15 p.m. on Tuesday, December 4, 2012 in the College Station Utility Services Training Center, 1603 Graham Road, College Station, Texas 77842. 2. Presentation and discussion of an Overview of College Station Medical District Master Plan and Plan Implementation. 3. Presentation, possible action, and discussion regarding an Overview of the Need for Alternative Financing and Management Approaches in the College Station Medical District. 4. Presentation and discussion of an Overview of Tax Increment Reinvestment Zones. 5. Presentation, possible action and discussion regarding Proposed College Station Medical District Tax Increment Reinvestment Zones. 20 SM120412 Minutes Page 2 6. Presentation and discussion of an Overview of Municipal Management Districts. 7. Presentation, possible action, and discussion regarding Proposed College Station Medical District Municipal Management Districts. Items 2-7 were discussed together. Bob Cowell, Executive Director of Development Services, led the discussion on the College Station Medical District TIRZ and MMD. A few years ago the City partnered with The Med in the creation of a Medical District. Considerations involved in the vision for the Medical District are: the population, nation-wide, is aging with a need for greater health care, seeking alternative housing options, and a greater emphasis on healthy living. This aging population with their greater health care needs will result in greater employment opportunities. The Medical District will be a unique place to work, visit, live, recreate, and get health care. It will be oriented around health and wellness with physically integrated parts for a better whole. It will be managed as a District. To realize the vision, significant private investment, with shared communication to the vision, will be needed. A significant infrastructure investment by the City is also required. The regulatory structure will be created with tailored development regulations and standards. The District will require a very structured management. Time is also of the essence. The faster we can turn the TIRZ on, the faster we can reap the benefits of new revenue. Additionally, timing for public notices will need to be considered when going forward with the Management District. The third piece related to timing is the pressure from property owners looking for development opportunity. Financing is needed for infrastructure. A minimum of $60 million is estimated to be needed for infrastructure. Nearly half of this cost is necessary for any development. The projects are of a magnitude the will require City involvement through debt, property taxes, rate increases, etc. Structured management is necessary to realize the vision, such as unique identity items (enhanced landscaping, signage, etc). Other considerations are marketing, promotion, and event management. Failures will limit the success of the District. Without structure, costs will likely be borne by the taxpayers. It will require the direct involvement of the beneficiaries. A brief overview of Tax Increment Reinvestment Zones was presented. TIRZ are authorized under Chapter 311 of the Texas Tax Code for areas of the City that are undeveloped due to some inadequate or defective condition. An increment of new value is “captured” to pay for those remedies to inadequate or defective conditions. Tax revenues already in existence continue to go to the taxing entity. Once the TIRZ has met its term life, the total value then goes to all the taxing districts in the project area. Schematics for proposed thoroughfares, greenway trails, and water and wastewater lines were provided. A brief overview of the associated costs and funding needs was presented. Jeff Kersten, Executive Director of Fiscal Services, presented the preliminary finance plan. After the Council creates the TIRZ, the TIRZ Board will develop a final project list and Finance Plan to be submitted to the Council for approval. 21 SM120412 Minutes Page 3 Staff is proposing two separate TIRZ. Proposals and preliminary finance plans for TIRZ A and TIRZ B will be presented to Council at the December 13 Regular Meeting and will be a Public Hearing as well. Afterwards, the Council will consider an ordinance creating TIRZ and TIRZ B, adopting the preliminary project and finance plans and adopting the TIRZ Boards. Bob Cowell, Executive Director of Development Services, began the presentation on Municipal Management Districts. MMD’s are authorized under Chapter 375 of the Texas Local Government Code and enabling legislation. This is a tool for areas of the City where it is desirable for property owners to work together to identify and address common problems or opportunities. MMD’s are used to supplement City services, not supplant them, and may also be used to develop certain improvements. They are governed by a Board of Directors initially appointed through the enabling legislation and then by Council appointment. They are financed through property assessments, ad valorem taxes, and issuance of debt. Council maintains oversight of the District through enabling legislation, appointments, consent to bond issuance, consent to add area to the District, and the ability to dissolve the District. They may also combine the District with other funding mechanisms. Staff is proposing two management districts because there are two very different needs. For MMD West, staff recommends an increased board composition of 12-15 members. They would have no ad valorem authority, but would have the ability to consider additions to the District with Council approval and a “pay-in” mechanism. The primary purpose of MMD West is to fund enhanced services, promotion and marketing. The focus for MMD East is on infrastructure costs. Board composition is limited to five to seven members. They would have ad valorem authority in addition to assessment by a required vote by the property owners. They would have the ability to consider additions to the District with Council approval and a “pay-in” mechanism. It was reiterated that the primary focus is the construction of improvements, as well as enhanced services, promotion and marketing. Revenue would be generated to fund the standard items, but also to finance debt. This District has more authority because its needs are greater. Council directed staff to go forward with TIRZ A, TIRZ B, MMD West, and MMD East. 8. Executive Session In accordance with the Texas Government Code §551.087-Economic Incentive Negotiations, the College Station City Council convened into Executive Session at 5:04 p.m. on Tuesday, December 4, 2012 in order to continue discussing matters pertaining to: A. Deliberation on economic development negotiations regarding an offer of financial or other incentives for a business prospect; to wit: • Economic development incentives to prospect in West College Station. The Executive Session adjourned at 6:10 p.m. on Tuesday, December 4, 2012. 22 SM120412 Minutes Page 4 9. Action on Executive Session. No action was required from Executive Session. 10. Adjournment MOTION: There being no further business, Mayor Berry adjourned the Special Meeting of the College Station City Council at 6:10 p.m. on Tuesday, December 4, 2012. The motion carried unanimously. ________________________ Nancy Berry, Mayor ATTEST: _______________________ Sherry Mashburn, City Secretary 23 December 13, 2012 Consent Agenda Item No. 2b Charter Amendment Certification To: David Neeley, City Manager From: Sherry Mashburn, City Secretary Agenda Caption: Presentation, possible action, and discussion regarding an ordinance approving the renumbering and rearrangement of the City Charter, as necessary, and authorizing the Mayor to certify and submit to the Secretary of State of the State of Texas an authenticated copy of the amended Home Rule Charter for the city of College Station, certifying that the Home Rule Charter was approved by the registered voters of the City of College Station at a special election held on November 6, 2012 and was accepted on their behalf by the City Council of the City of College Station by Ordinance no. 2012-3460 on November 19, 2012. Relationship to Strategic Goals: Not applicable Recommendation(s): Staff recommends adoption of the ordinance and authorization for the Mayor to certify the Charter to the Secretary of State. Summary: The City Charter provides for the Council, by ordinance, to renumber and rearrange all articles, sections, and paragraphs of the Charter, or any amendments to the Charter. Once the ordinance is passed, a certified copy must be forwarded to the Secretary of State for filing. Budget & Financial Summary: None Reviewed and Approved by Legal: November 29, 2012 Attachments: • Draft ordinance 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 December 13, 2012 Consent Agenda Item No. 2c 2013 Council Meeting Calendar To: David Neeley, City Manager From: Sherry Mashburn, City Secretary Agenda Caption: Presentation, possible action, and discussion regarding adoption of the 2013 Annual Council Calendar. Relationship to Strategic Goals: Not applicable Recommendation(s): Staff recommends adoption of the Annual Calendar. Summary: The schedule lists the 2nd and 4th Thursdays for 2013 Council Meeting dates. Alternate dates will be provided for the Council if scheduling conflicts should arise. This schedule is provided to the public on the City’s website. Budget & Financial Summary: None Reviewed and Approved by Legal: Not applicable Attachments: • 2013 Council Meeting and Holiday Calendar 62 2013 COUNCIL CALENDAR 1 New Year’s Day (City Offices Closed) 10 Regular Meeting 21 M.L. King Jr. Day (City offices closed) 24 Regular Meeting 24-25 Texas City Mgt Assoc. I JANUARY S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 JULY S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 4 Independence Day (City offices closed) 11 Regular Meeting 25 Regular Meeting 1-3 TML Elected Officials 5-6 Legislative Trip 14 Regular Meeting 28 Regular Meeting FEBRUARY S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 AUGUST S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 8 Regular Meeting 22 Regular Meeting 14 Regular Meeting 21-23 Texas City Mgt Assoc. II 28 Regular Meeting 29 Good Friday (City Offices Closed) MARCH S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 SEPTEMBER S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 2 Labor Day (City Offices Closed) 12 Regular Meeting 26 Regular Meeting 22-25 ICMA Annual Conference 11 Regular Meeting 25 Regular Meeting APRIL S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 OCTOBER S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 7 Regular Meeting 8-11 TML Annual Conference & Exhibition 24 Regular Meeting 6-9 Chamber Washington 13 Regular Meeting 23 Regular Meeting 27 Memorial Day (City offices closed) MAY S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NOVEMBER S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 14 Regular Meeting 25 Regular Meeting 28 -29 Thanksgiving (City Offices closed) 13 Regular Meeting 20-23 TX City Mgt Assoc Annual 27 Regular Meeting JUNE S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 DECEMBER S M T W Th F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 12 Regular Meeting 24-25 Christmas (City Offices Closed) 5 & 19 Alternate Days for December Council meetings Blue=Regular Council Dates Mauve=Offices Closed Peach=Council Conferences Green=Alternate Council Day 63 December 13, 2012 Consent Agenda Item No. 2d Mobile Food Vendor Ordinance Amendment To: David Neeley, City Manager From: Bob Cowell, AICP, CNU-A, Executive Director of Planning & Development Services Agenda Caption: Presentation, possible action and discussion regarding an ordinance amending Chapter 4 “Business Regulations” Section 20 “Mobile Food Vendors”, B “Permit and Application”, 4 “Permit Form”, (N), of the Code of Ordinance of the City of College Station. Relationship to Strategic Goals: Diverse Growing Economy Recommendation: Staff recommends approval. Summary: Chapter 4 “Business Regulations” of the Code of Ordinances was expanded by Council action in February 2011 to include Section 20 “Mobile Food Vendors.” At the time of adoption, Council directed Staff to revisit the ordinance after one year to evaluate possible revisions. Some revisions were proposed by staff and adopted by Council earlier this year on April 26, 2012. This ordinance proposes further refinements by removing the requirement that the bond in which the mobile food vendor applicant executes does not need to extend the two years beyond the duration of the permit and clarifies that the bond is payable to the City of College Station. Budget & Financial Summary: N/A Reviewed and Approved by Legal: Yes Attachments: 1. Red-line of Ordinance Revision 2. Proposed Ordinance 64 REDLINE OF PROPOSED CHANGES IN SECTION 20 MOBILE FOOD VENDORS B. PERMIT AND APPLICATION (4) Permit Form - A complete application shall require the following information from the applicant to be considered: (n) A bond in the sum of not less than One Thousand and No/100 ($1,000.00) Dollars, executed by the Mobile Food Vendor with two or more good and sufficient sureties satisfactory to the Finance Director, which bond shall be payable to the Mayor of the City of College Station, and his successors in office, for the use and benefit of any person or persons entitled thereto, and conditioned that the principal and sureties will pay all damages to persons caused by or arising from or growing out of any action of the Mobile Food Vendor while conducting business in the City of College Station, Texas. The bond shall remain in full force and effect for the entire duration of the permit provided herein and for two full years after such permit expires. The bond shall not be required for the sale of goods in interstate commerce. 65 66 67 December 13, 2012 Consent Agenda Item No. 2e Health Plan Stop Loss Renewal January 1, 2013 – December 31, 2013 To: David Neeley, City Manager From: Alison Pond, Human Resources Director Agenda Caption: Presentation, possible action, and discussion on renewing the Stop Loss reinsurance for the City’s self-funded health plan with Blue Cross and Blue Shield of Texas (BCBS) for the period of January 1, 2013 through December 31, 2013. The estimated annual premiums are $569,232. Recommendation(s): Staff recommends approval of 2013 Stop Loss renewal. Summary: Stop loss coverage is an insurance policy that protects the City from specific large medical or prescription drug claims and/or from an aggregate amount of overall high claims. This is the first renewal of the original contract from plan year 2012. The renewal includes a 7.57% increase from last year. The 2013 plan year projected costs are based on a monthly average of 804 employees, retirees and COBRA participants on the plan. Budget and Financial Summary: Funds are available and budgeted in the employee benefits fund. Attachments: Recommendation letter from McGriff, Seibels & Williams Stop Loss Renewal Application 68 69 70 A Division of Health Care Service Corporation, a Mutual Legal Reserve Company an Independent Licensee of the Blue Cross and Blue Shield Association TXStopLossApp-11/10 BlueCross BlueShield of Texas APPLICATION FOR STOP LOSS COVERAGE Employer Group Name: City of College Station Employer Group Address: P.O. Box 9960 City: College Station State of Situs: TX Zip Code: 77842- 7960 Account Number: 80897 Employer Group Number(s): 89527 Effective Date of Policy 1/1/13 Policy Period: These specifications are for the Policy Period commencing on 1-1-13 and ending on 12-31-13 The specifications below shall become effective on the first day of the Policy Period specified above and shall continue in full force and effect until the earliest of the following dates: (1) The last day of the Policy Period; (2) The date the Policy terminates; or (3) The date this Application for Stop Loss Coverage (herein called the “Application”) is superseded in whole or in part by a later executed Application. A. Aggregate Stop Loss Insurance: Yes No If yes, complete items 1 through 9 below. 1. New Coverage Renewal of Existing Coverage 2. Stop Loss Coverage Period: New Coverage (Select one from below): Standard: Claims incurred and paid during the Policy Period. “Run-in” included: Claims incurred on or after and paid during the Policy Period. “Run-in” includes claims paid by Policyholder’s prior claim administrator: Yes No If yes, such claims must be reported by the Policyholder to the Company (Blue Cross and Blue Shield of Texas, a Division of Health Care Service Corporation, a Mutual Legal Reserve Company) within 12 months of the Policy Effective Date and paid by the Policyholder’s prior claim administrator within 6 months after the Policy Effective Date. Renewal of Existing Coverage: Claims incurred on or after the original Effective Date of Policy and paid during the Policy Period. 3. Aggregate Stop Loss Insurance shall apply to: Medical Claims Outpatient Prescription Drug Claims Dental Claims Other (please specify): 71 TXStopLossApp-11/10 2 4. Average Claim Value: 615.16 per Employee Attachment Factor: 125% of the Average Claim Value 5. Aggregate Claim Liability and Run-Off Claim Liability Factors a. Employer’s Claim Liability for each Policy Period shall be the sum of the Monthly amounts obtained by multiplying the number of Coverage Units for each Month by the following factors: $768.95 for each Employee Coverage Unit $768.95 for each Employee/Family Coverage Unit Please use the continuous text field directly below for any other structure (leaving the fields above blank). Note: you can use the “return” key to create additional rows, if needed: $ b. Employer’s Run-Off Claim Liability shall be calculated by multiplying the sum average of all Coverage Units during each of the three calendar Months immediately preceding termination by the factors shown below. Settlement for the final accounting period will be described in the section of the Policy entitled SETTLEMENTS, Run-Off Period subsection of the Policy. $253.00 for each Employee Coverage Unit $253.00 for each Employee/Family Coverage Unit Please use the continuous text field directly below for any other structure (leaving the fields above blank). Note: you can use the “return” key to create additional rows, if needed: $ 6. CAP Arrangement Yes No 7. Aggregate Stop Loss Claims a. The amount of Paid Claims during the current Policy Period, less: i. Individual (Specific) Stop Loss Claims ii. Any claims in excess of the Individual (Specific) Stop Loss Claims per Covered Person per Lifetime Maximum iii. Any claims in excess of the Individual (Specific) Stop Loss Claims maximum Point of Attachment that exceeds the Aggregate Point of Attachment. The Aggregate Point of Attachment shall equal the sum of the Employer’s Claim Liability amounts calculated Monthly as described in Item 5.a. above for the indicated Policy Period. b. In the event of termination at the end of a Policy Period, the Final Settlement Aggregate Point of Attachment shall equal the sum of the Employer’s Claim Liability amount for the Final Policy Period and the Employer’s Run-Off Claim Liability calculated as described in item 5.b. above. However, for the indicated Policy Period the minimum Aggregate Point of Attachment shall be $6,593,901. c. Aggregate Stop Loss Claims shall not exceed a lifetime maximum of unlimited for the indicated Policy Period. 8. Premium (Select one): Annual Premium (Due on the first day of the Policy Period): $ . Monthly Premium shall be equal to the amounts obtained by multiplying the number of Coverage Units for a particular Month by 72 TXStopLossApp-11/10 3 $5.52 for each Employee Coverage Unit $5.52 for each Employee/Family Coverage Unit Please use the continuous text field directly below for any other structure (leaving the fields above blank). Note: you can use the “return” key to create additional rows, if needed: 9. The premium is based upon a current membership of Individual Coverage Units and Family Coverage Units. B. Individual (Specific) Stop Loss Insurance: Yes No If yes, complete items 1 through 6 below. 1. New Coverage Renewal of Existing Coverage 2. Stop Loss Coverage Period: New Coverage (Select one from below): Standard: Claims incurred and paid during the Policy Period. “Run-in” included: Claims incurred on or after and paid during the Policy Period “Run-in” includes claims paid by Policyholder’s prior claim administrator: Yes No If yes, such claims must be reported by the Policyholder to the Company (Blue Cross and Blue Shield of Texas, a Division of Health Care Service Corporation, a Mutual Legal Reserve Company) within months of the Policy Effective Date and paid by the Policyholder’s prior claim administrator within months after the Policy Effective Date. Renewal of Existing Coverage: Claims incurred on or after the original Effective Date of Policy and paid during the Policy Period. 3. Individual (Specific) Stop Loss Insurance shall apply to: Medical Claims Outpatient Prescription Drug Claims Dental Claims Vision Claims Other (please specify): 4. Individual (Specific) Stop Loss Claims a. For who is identified by the health identification (ID) number , the amount of Paid Claims during the current Policy Period in excess of the Individual Point of Attachment of $ . Such amount shall apply for the Policy Period. b. For each other Covered Person: The amount of Paid Claims during the current Policy Period in excess of the Individual Point of Attachment of $150,000 per Covered Person but not to exceed a maximum Point of Attachment of $ unlimited per Policy Period. Paid Claims in excess of the maximum point of attachment shall not be eligible to satisfy the Aggregate Point of Attachment. Such amount shall apply for the Policy Period. c. Covered Person per Lifetime Maximum: 73 TXStopLossApp-11/10 4 The Individual (Specific) Stop Loss Claims shall not exceed unlimited per Covered Person per Lifetime. Paid Claims in excess of the Covered Person per Lifetime Maximum shall not be eligible to satisfy the Aggregate Point of Attachment. Point of Attachment Includes Claim Administrator’s Provider Access Fee Excludes Claim Administrator’s Provider Access Fee 5. Premium (select one): Annual Premium (Due on the first day of the Policy Period): $ . Monthly Premium shall be equal to the amounts obtained by multiplying the number of Coverage Units for a particular Month by $53.48 for each Employee Coverage Unit $53.48 for each Employee/Family Coverage Unit Please use the continuous text field directly below for any other structure (leaving the fields above blank). Note: you can use the “return” key to create additional rows, if needed: $ 6. The premium is based upon a current membership of Individual Coverage Units and Family Coverage Units. Additional Provisions: The undersigned person represents that he/she is authorized and responsible for purchasing stop loss coverage on behalf of the Employer Group. It is understood that the actual terms and conditions of coverage are those contained in this Application the Stop Loss Coverage Policy into which this Application shall be incorporated at the time of acceptance by Blue Cross and Blue Shield of Texas, a Division of Health Care Service Corporation, a Mutual Legal Reserve Company (“HCSC”). Upon acceptance, HCSC shall issue a Stop Loss Coverage Policy to the Employer Group. Upon acceptance of this Application and issuance of the Stop Loss Coverage Policy, the Employer Group shall be referred to as the "Policyholder." Sales Representative Signature of Authorized Purchaser Name of Underwriter Title of Authorized Purchaser Date INTERNAL USE ONLY Date Application approved by Underwriting: 74 Blue Cross and Blue Shield of TX CITY OF COLLEGE STATION By: By: Printed Name: Mayor Title: Date:________________ Date: ATTEST: City Secretary Date:_____________ APPROVED: City Manager Date:_____________ City Attorney Date:_____________ Executive Director Business Services Date:_____________ 75 December 13, 2012 Consent Agenda Item No. 2f 2013 Basic & Voluntary Life and AD&D To: David Neeley, City Manager From: Alison Pond, HR Director Agenda Caption: Presentation, possible action and discussion regarding a new policy for employee life, accidental death & dismemberment (AD&D), voluntary life and AD&D, and dependent life insurance with Mutual of Omaha. Projected annual City cost is $93,000.00. Relationship to Strategic Goals: (Select all that apply) 1. Financially Sustainable City Recommendation(s): Staff recommends council approve the policy with Mutual of Omaha for all lines of life insurance coverage stated above. Summary: The City currently provides life insurance and accidental death & dismemberment (AD&D) insurance for all benefit-eligible employees, each in the amount of two times annual salary. The City also provides a line of duty benefit for all sworn police and fire personnel equal to $50,000. Employees may also purchase supplemental life insurance on themselves and/or their dependents at a group rate. The City of College Station issued an RFP in July 2012 for all lines of life insurance coverage. Nine responses were received and Mutual of Omaha is recommended; they offer a 23% decrease in rates from 2012. Budget & Financial Summary: Funds are budgeted in the Benefits Fund. Reviewed and Approved by Legal: Yes Attachments: New Customer Verification Guide 76 77 78 79 80 81 82 Voluntary Term Life and AD&D Insurance (continued) Revised SOLD Proposal (4621346)5 PARTICIPATION AND COST SUMMARY (CONT'D) COST SUMMARY*Age Band Employee Rate per $1,000 Spouse Rate per $1,000 All Children Rate per $10,000Voluntary Term Life $OO$JHV $0.175 $0.60 <25 - 29 $0.08 -- 30 - 34 $0.09 -- 35 - 39 $0.13 -- 40 - 44 $0.21 -- 45 - 49 $0.35 -- 50 - 54 $0.52 -- 55 - 59 $0.77 -- 60 - 64 $1.27 -- 65 - 69 $2.30 -- 70 - 74 $3.25 -- 75 - 79 $7.02 -- 80 - 84 $7.02 -- 85 - 89 $7.02 -- 90 - 100 $7.02 -- * This plan is rated using different rates for the employee and spouse. Employee rates are calculated based on the employee's current age, and spouse rates are calculated based on the spouse's current age on the effective date of the plan. Rates are adjusted once each year on the plan anniversary date for plan members advancing to the next age band. Spouse coverage terminates when the spouse attains age 70. Voluntary AD&D Employee Rate per $1,000 $0.03 PACKAGE PRICING The rates and benefits for this coverage assume package pricing. The rates and/or benefits are subject to change if one or more coverages included in Option 1 are not selected by the employer. RATE GUARANTEE 3 Years RATE GUARANTEE DATE 01/01/2016 ADDITIONAL BENEFITS WAIVER OF PREMIUM - DISABILITY ƒDefinition of Disability - Any Occupation ƒElimination Period - 9 months ƒTermination - Age 65 ANNUAL INCREASE BENEFIT 1 increment LIVING CARE BENEFIT 80% to $250,000 PORTABILITY Included LAYOFF/LEAVE ƒTemporary Layoff - 12 weeks ƒPersonal Leave - 12 weeks AD&D 24 hour coverage for employees AD&D BENEFITS - Seat Belt - Common Carrier - Child Education - Airbag - Repatriation 83 84 85 86 87 88 89 90 91 92 93 94 December 13, 2012 Consent Agenda Item No. 2g Enterprise Resource Planning Upgrade/Replacement Consultant Services To: David Neeley, City Manager From: Ben Roper, IT Director Agenda Caption: Presentation, possible action, and discussion regarding approval of a contract between the City of College Station and BerryDunn in the amount of $95,195.00 for the purposes of conducting an analysis of the current software and recommend alternatives and authorizing the City Manager to execute the contract on behalf of the City Council. (This item is also on workshop agenda item #6). Relationship to Strategic Goals: (Select all that apply) 1. Financially Sustainable City 2. Core Services and Infrastructure Recommendation(s): Staff recommends approval of the contract and authorization for the City Manager to execute the contract. Summary: Last year staff began an internal review of the software that runs the city financials, utility billing, planning management and many other internal functions. Based on this initial review and the complexity of this project it was determined that the next phase would be to bring in a consultant to continue this effort and conduct a gap analysis regarding the ability of the current system to meet the city’s requirements, or move to a different software application. A RFP for consultants to assist with this project was issued, which resulted in 15 proposals. Staff evaluated these proposals and through a review process identified the two leading firms. Representatives from each of these firms spent a full day on site November 14th and 15th , meeting with department reps and discussing their approach to this project. Based on these meetings, the firm of BerryDunn of Portland, Maine is recommended. Upon completion of their analysis, BerryDunn will brief Council on their recommendations. Budget & Financial Summary: Budget in the amount of $103,550 is included in the FY13 approved budget for this phase of the project (CO 1204). This phase of the project is being funded with General Funds that are included in the IT Department budget. Reviewed and Approved by Legal: Yes Attachments: Contract on file in the City Secretary’s Office 95 December 13, 2012 Consent Agenda Item No. 2h Annual Pricing Agreement for Steel, Fiberglass and Concrete Electric Distribution Poles To: David Neeley, City Manager From: Jeff Kersten, Executive Director Business Services Agenda Caption: Presentation, possible action, and discussion on a bid award for the purchase of steel, fiberglass, and concrete electric distribution poles to TransAmerican Power Products, Inc. $96,725.00; HD Supply Utilities $160,936.40; StressCrete, Inc $208,231.00; and RS Technologies, Inc $17,724.66 for a total of $483,617.06. Relationship to Strategic Goals: Financially Sustainable City Providing Response to Core Services and Infrastructure Recommendation(s): Recommend award to the lowest responsible bidders meeting specifications. Group A: TransAmerican $55,405.00 Group B: TransAmerican $39,370.00 plus $1,950.00 freight charge Group C: HD Utilities $160,936.40 Group D: RS Technologies $17,724.66 Group E: StressCrete $181,030.00 Group F: StressCrete $27,201.00 Summary: Purchase orders will be created upon award of this agreement, and purchases will be made as needed during the term of the agreement. The various electric poles are maintained in Electrical Inventory in an inventory account and expensed as necessary during the agreement period. The purchasing agreement period shall be for one (1) year with the option to renew for two additional one year terms. Budget & Financial Summary: Nine (9) sealed, competitive bids were received and opened on November 12, 2012. Funds are budgeted and available in the Electrical Fund. Various projects may be expensed as supplies are pulled from inventory and issued. Reviewed and Approved by Legal: N/A Attachments: Bid Tabulation No. 13-017 96 City of College Station - Purchasing Division Bid Tabulation for #13-017 "Annual Electric Distribution Poles Price Agreement" Open Date: Monday, November 12, 2012 @ 2:00 p.m. Item Qty Unit COCS Inventory #Description Ground Line Unit Price Total Price Ground Line Unit Price Total Price Ground Line Unit Price Total Price Ground Line Unit Price Total Price Ground Line Unit Price Total Price Ground Line Unit Price Total Price Ground Line Unit Price Total Price Ground Line Unit Price Total Price Ground Line Unit Price Total Price A1 10 ea 285-065-00020 30' Steel Pole $860.00 $8,600.00 $1,110.00 $11,100.00 $0.00 $2,100.00 $21,000.00 $1,253.00 $12,530.00 76,800 $1,190.00 $11,900.00 $0.00 $1,506.00 $15,060.00 $0.00 A2 10 ea 285-065-00010 40' Steel Pole $1,134.00 $11,340.00 $1,660.00 $16,600.00 $0.00 $3,050.00 $30,500.00 $1,312.00 $13,120.00 101,200 $1,247.00 $12,470.00 $0.00 $2,071.00 $20,710.00 $0.00 A3 10 ea 285-065-00011 45' Steel Pole $1,527.00 $15,270.00 $2,100.00 $21,000.00 $0.00 $3,950.00 $39,500.00 $1,666.00 $16,660.00 136,200 $1,584.00 $15,840.00 $0.00 $2,381.00 $23,810.00 $0.00 A4 5 ea 285-065-00012 50' Steel Pole $1,911.00 $9,555.00 $2,330.00 $11,650.00 $0.00 $4,400.00 $22,000.00 $1,791.00 $8,955.00 152,200 $1,702.00 $8,510.00 $0.00 $2,702.00 $13,510.00 $0.00 A5 5 ea 285-065-00013 55' Steel Pole $2,128.00 $10,640.00 $2,785.00 $13,925.00 $0.00 $5,050.00 $25,250.00 $2,780.00 $13,900.00 189,600 $2,644.00 $13,220.00 $0.00 $2,834.00 $14,170.00 $0.00 B1 5 ea 285-065-00016 50' Steel Self Supporting Pole w/ 6 degree angle $2,049.00 $10,245.00 $2,905.00 $14,525.00 $0.00 $4,950.00 $24,750.00 $3,190.00 $15,950.00 199,000 $2,636.00 $13,180.00 $0.00 $2,980.00 $14,900.00 $0.00 B2 5 ea 285-065-00017 50' Steel Self Supporting Pole w/ 12 degree angle $2,819.00 $14,095.00 $0.00 $0.00 $6,050.00 $30,250.00 $3,894.00 $19,470.00 305,000 $3,780.00 $18,900.00 $0.00 $4,274.00 $21,370.00 $0.00 B3 5 ea 285-065-00018 50' Steel Self Supporting Pole w/ 18 degree angle $3,006.00 $15,030.00 $0.00 $0.00 $6,650.00 $33,250.00 $4,753.00 $23,765.00 414,000 $4,250.00 $21,250.00 $0.00 $4,805.00 $24,025.00 $0.00 C1 10 ea 285-065-00028 30' Fiberglass Composite Pole $0.00 $0.00 75,000 $799.00 $7,990.00 $0.00 $0.00 87,975 $1,027.00 $10,270.00 $0.00 $0.00 97,760 $1,360.74 $13,607.40 C2 20 ea 285-065-000__40' Fiberglass Composite Pole $0.00 $0.00 75,000 $999.99 $19,999.80 $0.00 $0.00 81,600 $1,123.00 $22,460.00 $0.00 $0.00 168,460 $2,301.83 $46,036.60 C3 60 ea 285-065-00024 40' Fiberglass Composite Pole $0.00 $0.00 100,000 $1,132.00 $67,920.00 $0.00 $0.00 100,640 $1,214.00 $72,840.00 $0.00 $0.00 168,460 $2,301.83 $138,109.80 C4 30 ea 285-065-00022 45' Fiberglass Composite Pole $0.00 $0.00 100,000 $1,241.00 $37,230.00 $0.00 $0.00 114,793 $1,419.00 $42,570.00 $0.00 $0.00 159,960 $2,350.69 $70,520.70 C5 10 ea 285-065-00025 50' Fiberglass Composite Pole $0.00 $0.00 120,000 $1,278.66 $12,786.60 $0.00 $0.00 128,945 $1,545.00 $15,450.00 $0.00 $0.00 170,430 $3,579.14 $35,791.40 C6 10 ea 285-065-000__55' Fiberglass Composite Pole $0.00 $0.00 120,000 $1,501.00 $15,010.00 $0.00 $0.00 143,098 $2,627.00 $26,270.00 $0.00 $0.00 163,470 $3,626.50 $36,265.00 D1 3 ea 285-065-00026 50' Fiberglass Composite Pole w/ 12 degree angle $0.00 $0.00 $0.00 $0.00 $0.00 307,500 $9,414.00 $28,242.00 $0.00 $0.00 335,750 $5,908.22 $17,724.66 E1 5 ea 540-070-00020 35' Prestessed Spun Cast Concrete Pole $0.00 $2,030.00 $10,150.00 $0.00 $0.00 $0.00 $0.00 $1,411.00 $7,055.00 $0.00 $0.00 E2 10 ea 540-070-00010 40' Prestressed Spun Cast Concrete Pole $0.00 $2,135.00 $21,350.00 $0.00 $0.00 $0.00 $0.00 $1,616.00 $16,160.00 $0.00 $0.00 E3 30 ea 540-070-00008 45' Prestressed Spun Cast Concrete Pole $0.00 $2,245.00 $67,350.00 $0.00 $0.00 $0.00 $0.00 $1,832.00 $54,960.00 $0.00 $0.00 E4 15 ea 540-070-00009 50' Prestressed Spun Cast Concrete Pole $0.00 $2,360.00 $35,400.00 $0.00 $0.00 $0.00 $0.00 $2,067.00 $31,005.00 $0.00 $0.00 E5 30 ea 540-070-00011 55' Prestressed Spun Cast Concrete Pole $0.00 $2,485.00 $74,550.00 $0.00 $0.00 $0.00 $0.00 $2,395.00 $71,850.00 $0.00 $0.00 F1 3 ea 540-070-00021 50' Prestressed Spun Cast Self Supporting Concrete Pole w/ 6 degree angle $0.00 $2,525.00 $7,575.00 $0.00 $0.00 $0.00 $0.00 $2,518.00 $7,554.00 $0.00 $0.00 F2 3 ea 540-070-00018 50' Prestressed Spun Cast Self Supporting Concrete Pole w/ 12 degree angle $0.00 $2,855.00 $8,565.00 $0.00 $0.00 $0.00 $0.00 $2,950.00 $8,850.00 $0.00 $0.00 F3 3 ea 540-070-00019 50' Prestressed Spun Cast Self Supporting Concrete Pole w/ 18 degree angle $0.00 $3,081.00 $9,243.00 $0.00 $0.00 $0.00 $0.00 $3,599.00 $10,797.00 $0.00 $0.00 GROUP "A" MATERIALS SUBTOTAL Manufacturer Delivery GROUP "B" MATERIALS SUBTOTAL Manufacturer Delivery GROUP "C" MATERIALS SUBTOTAL Manufacturer Delivery GROUP "D" MATERIALS SUBTOTAL Manufacturer Delivery GROUP "E" MATERIALS SUBTOTAL Manufacturer Delivery GROUP "F" MATERIALS SUBTOTAL Manufacturer Delivery Certification of Bid Addendum Acknowledged Exceptions NNAny/All Liquidated damages N N N N N See Bid for list $0.00 $0.00 $17,724.66 Y Y $0.00 $340,330.90 RS Technologies, Inc. 40 days $17,724.66 40 days $0.00 Y Y RS Technologies, Inc. $0.00 $0.00 $340,330.90 $17,724.66 $0.00 $0.00 $0.00 CHM Industries 12-14 wks $0.00 $0.00 $0.00 45 days $27,201.00 Stress Crete, Inc. 45 days $208,231.00 Y Y Bridgewell $87,260.00 $60,295.00 $0.00 $0.00 $0.00 $0.00 $87,260.00 CHM Industries 12-14 wks $60,295.00 $0.00 $0.00 $181,030.00 Stress Crete, Inc. $181,030.00 $27,201.00 $0.00 $0.00 Stress Crete, Inc. $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Y Y $53,330.00 Carolina High Mast 12 wks $189,860.00 Shakespeare 5-6 wks $28,242.00 Shakespeare 7 wks $0.00 Y N Techline $61,940.00 $53,330.00 $189,860.00 $28,242.00 $0.00 $0.00 $61,940.00 Valmont 16 wks Valmont 16 wks $0.00 $0.00 $0.00 $0.00 Y N KBS Electrical Distributors $65,165.00 $59,185.00 $0.00 $0.00 $0.00 $0.00 $65,165.00 Valmont 16 wks $59,185.00 90-120 days $0.00 $0.00 $0.00 $0.00 $0.00 $138,250.00 ROHN Products, Inc. 90-120 days $88,250.00 ROHN Products, Inc. ROHN Products, Inc. $138,250.00 $88,250.00 $0.00 $0.00 $0.00 $160,936.40 Y Y Freight $1950 Total Group F Total Group E $160,936.40 Ameron 6-9 weeks ARO $0.00 $0.00 $25,383.00 Valmont 12-16 wks Y Y HD Supply Utilities $0.00 $0.00 $160,936.40 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $208,800.00 Valmont 12-16 wks $208,800.00 $25,383.00 $74,275.00 McWane 12-14 wks from App. DWG $14,525.00 McWane 12-14 wks from App. DWG Texas Electric Cooperatives $74,275.00 $14,525.00 $0.00 $0.00 $96,725.00TOTAL RECOMMENDED AWARD AMOUNT Y Y Total Group D Total Group C Total Group B Total Group A $0.00 $0.00 $0.00 GROUP 'F' MATERIALS (Self Supporting Prestressed Spun Cast Concrete Poles) $55,405.00 TransAmerican Power Products, Inc. 14-16 wks ARO TransAmerican Power Products, Inc. GROUP 'A' MATERIALS (Steel Poles) GROUP 'B' MATERIALS (Steel Self-Supporting Poles) GROUP 'C' MATERIALS (Fiberglass Composite Poles) GROUP 'D' MATERIALS (Fiberglass Composite Poles) GROUP 'E' MATERIALS (Prestressed Spun Cast Concrete Poles) $0.00 $39,370.00 $0.00 $0.00 $0.00 $0.00 $55,405.00 TransAmerican Power Products, Inc. 14-16 Wks ARO $39,370.00 97 December 13, 2012 Consent Agenda Item No. 2i Debt Reimbursement Resolution for Rock Prairie Road Rehabilitation (Bird Pond Road to W.D. Fitch Parkway) To: David Neeley, City Manager From: Jeff Kersten, Executive Director, Business Services Agenda Caption: Presentation, possible action, and discussion regarding approval of a resolution declaring intention to reimburse certain expenditures with proceeds from debt for the Rock Prairie Road Rehabilitation (Bird Pond Road to W.D. Fitch Parkway) project. Recommendation(s): Staff recommends approval of the resolution declaring intention to reimburse certain expenditures with proceeds from debt. Summary: It is anticipated that the Rock Prairie Road Rehabilitation (Bird Pond Road to W.D. Fitch Parkway) project will be completed using Certificates of Obligation planned to be issued in FY13 and/or FY14. The current budget for the project is $2,170,000. It is anticipated that long term debt will be issued for this project. An engineering contract for this project will be brought to Council at a later date, but, in the meantime, preliminary engineering costs are expected to occur. On projects for which the expenditures will occur prior to the debt issue, a resolution declaring intention to reimburse certain expenditures with proceeds from debt must be adopted within 60 days of expenditure on the project. Budget & Financial Summary: The “Resolution Declaring Intention to Reimburse Certain Expenditures with Proceeds from Debt” is necessary for this item because the long term debt has not been issued for the project. This debt is scheduled to be issued in the future. Attachments: 1. Resolution Declaring Intention to Reimburse Certain Expenditures with Proceeds from Debt 98 99 100 101 December 13, 2012 Consent Agenda Item No. 2j Delegation to City Manager to Approve and Execute Various Documents To: David Neeley, City Manager From: Jeff Kersten, Executive Director Business Services Agenda Caption: Presentation, possible action and discussion regarding a resolution delegating authority to the City Manager to approve and execute various documents of a routine nature on behalf of the City to conduct the daily affairs of the City. Relationship to Strategic Goals: 1. Financially Sustainable City 2. Core Services and Infrastructure 3. Neighborhood Integrity 4. Diverse Growing Economy 5. Improving Transportation 6. Sustainable City Recommendation(s): Staff recommends approval of the resolution. Summary: The intent of this resolution is to provide the City Manager the ability to conduct the daily affairs of the City which involve numerous decisions of a routine nature. Historically, the Budget Ordinance, approved by Council each year, provided this delegation. However, when the 2013 Budget Ordinance was updated this year, the language authorizing this delegation was omitted. This resolution will authorize the City Manager or his designee(s) to approve and execute easements including but not limited to utility and access easements; to approve and execute releases of easements including but not limited to releases of temporary construction easements and temporary blanket easements; to negotiate, approve and execute documents related to the settlement of assessments including but not limited to assessments for paving, weed mowing, and demolition when there is a legal question concerning whether an assessment is enforceable or when there are other extenuating circumstances that reasonably support a settlement of a disputed assessment; and to release Community Development Down Payment Assistance Program deeds of trust when the requirements of said deeds of trust are satisfied. Budget & Financial Summary: There is no financial impact. Reviewed and Approved by Legal: Yes Attachments: Resolution 102 103 December 13, 2012 Consent Agenda No. 2k Barron Road Widening Phase 2 Landscaping Project Number ST 10-26 To: David Neeley, City Manager From: Chuck Gilman, P.E., PMP, Public Works Director Agenda Caption: Presentation, possible action, and discussion regarding approval of a contract between the City of College Station and Texas Landscape Creations in the amount of $101,945.98 for the Barron Road Phase 2 Landscaping project and authorizing the City Manager to execute the contract on behalf of the City Council. Relationship to Strategic Goals: 1. Core Services and Infrastructure 2. Neighborhood Integrity Recommendation(s): Staff recommends approval of the contract and authorization for the City Manager to execute the contract. Summary: The Barron Road Widening Phase 2 Landscaping project consists of the installation of landscaping in the medians of Barron Road between Decatur Drive and State Highway 40. The plants chosen for installation include native drought tolerant grasses with a small number of drought resistant trees. The plants selection was made to eliminate the need for an irrigation system. The contractor will be responsible for watering the plant material within 24-hours after installation, and for 30-days after installation as needed. The specifications also require the contractor to water the plant material during the one-year warranty period. At the end of the warranty period, the Contractor is required to replace any plant material that did not survive. Budget & Financial Summary: Funds in the amount of $4,353,338.00 are budgeted in the Streets Capital Projects Fund. Funds in the amount of $4,238,583.76 have been expended or committed to date leaving $114,754.24 for this contract and future expenses. Reviewed and Approved by Legal: Yes Attachments: 1.) Construction Contract – on file in the City Secretary’s Office 2.) Bid Tabulations 104 City of College Station - Purchasing Division Bid Tabulation for #13-002 "Barron Road Phase 2 Landscaping" Open Date: Tuesday, October 30, 2012 @ 2:00 p.m. Item Qty Unit Price Total Cost Unit Price Total Cost 1 3,060 $20.55 $62,883.00 $13.30 $40,698.00 2 18 $102.60 $1,846.80 $243.00 $4,374.00 3 16 $85.50 $1,368.00 $387.00 $6,192.00 4 150 $14.31 $2,146.50 $32.50 $4,875.00 5 339 $17.10 $5,796.90 $24.00 $8,136.00 6 664 $6.12 $4,063.68 $16.00 $10,624.00 7 1370 $7.11 $9,740.70 $11.20 $15,344.00 8 3,060 $2.59 $7,925.40 $5.05 $15,453.00 9 1 $6,175.00 $6,175.00 $8,500.00 $8,500.00 Alternate 1 Item Qty Unit Price Total Cost Unit Price Total Cost 10 3,060 $2.70 $8,262.00 $4.75 $14,535.00 Y 2 Y Elliott Construction/ The Ground Crew $114,196.00 $128,731.00 Addendum Bid Bond Y 2 Y Texas Landscape Creations Certification $101,945.98 $110,207.98TOTAL BID WITH ALTERNATE TOTAL BID Remove grass & weeds, apply herbicide. Add compost & fertilizer, and rototilling. Treeform youpon, 15 gal. installed Description Single truck Crepe Myrtles, 15 gal. installed Gulf Muhly grass, 5 gal. installed Install weed cloth in all bed areas prior to mulching using 2 oz per square yard fabric. Description Red Yuccas, 3 gal. installed Miniature Fountain grass, 1 gal. installed Purple Verbena, 1 gal. installed Mulching and pre-emergent herbicide Traffic Control 105 December 13, 2012 Consent Agenda Item No. 2L Project Number PK-0906 Creek View Neighborhood Park Project and a Resolution Declaring Intention to Reimburse Certain Expenditures with Proceeds From Debt To: David Neeley, City Manager From: Chuck Gilman, P.E., PMP, Public Works Director Agenda Caption: Presentation, possible action, and discussion regarding a change order to professional services contract #09-233 with Mitchell & Morgan, LLP in the amount of $41,500.00, and approval of a resolution declaring intention to reimburse certain expenditures with proceeds from debt. Relationship to Strategic Goals: 2. Core services & Infrastructure, 3. Neighborhood Integrity Recommendation(s): Staff recommends approval of this change order and recommends approval of the resolution declaring intention to reimburse certain expenditures with proceeds from debt. Summary: The Creek View Neighborhood Park Project was included in the 2008 bond authorization. Staff began design on the proposed park in the fall of 2009. Funds for the maintenance of the park were not readily available in 2010, so the design project for the park was put on hold. Funds for the operation of the park were included in the FY 2013 operating budget. The original scope of work for this contract included revision to the current flood study to allow for a pedestrian bridge, plans for a bridge layout using a prefabricated bridge, design of the abutment for the pedestrian bridge, geotechnical investigation for the abutment design, erosion control plans, and materials testing during construction. After a thorough review of the project scope, staff realized that additional engineering services are required of the professional design consultant. The revised scope of work modifies the previous proposal to include the following: full project coordination and incorporation of all plans (structural, electrical, and site/civil) into the plan set, structural engineering design services for the foundation design of playground and other park equipment/structures, site lighting design and layout, sidewalk layout and grading, TAS/TDLR review and inspection services for ADA compliance, and revised materials testing services during construction to cover the expanded services. Budget & Financial Summary: Budget in the amount of $515,000 has been included for this project in the Parks Capital Improvement Projects Fund. A total of $27,959.28 has been expended or committed to date, leaving a balance of $487,040.72 for this contract and future expenditures. The “Resolution Declaring Intention to Reimburse Certain Expenditures with Proceeds from Debt” is necessary for this item because the majority of the long term debt has not been issued for the project. The debt for the project is scheduled to be issued later this fiscal year. Reviewed and Approved by Legal: Yes Attachments: 1. Change Order No. 3 2. Project Location Map 3. Resolution Declaring Intention to Reimburse Certain Expenditures with Proceeds from Debt 106 107 MARKHAMVICTORIAGRAHAMW ESTFIELDNEWPORTCHESAPEAKESPRINGFIELDDANVILLEHARVESTMULLINSHARTFORDALEXANDRIAMEADOW VIEW PLANOCOEBURNBAYWOODTYLERARDENNEROBELMONTRANSBERGWHEATONEAGLE AVENUEGRAHAM ROADWESTFIELD DRIVENEW PORT LANEVICTORIA AVENUEDOVE HOLLOW LANEMARKHAM LANEDOVE RUN TRAILPUBLIC ALLEYALEXANDRIA AVENUECHESAPEAKE LANEHARVEST DRIVEHARTFORD DRIVEALLEYEMERALD DOVE AVENUEMARKHAM COURTDANVILLE LANECRESTED POINT DRIVEDANVILLE COURTCHESAPEAKE COURTWINDMEADOWS DRIVECREEKSIDE CIRCLEALEXANDRIA AVENUEPUBLIC ALLEYCRESTED POINT DRIVECreek View Neighborhood ParkProject Location Map108 109 110 111 December 13, 2012 Regular Agenda Item No. 1 Buena Vida Subdivision Parking Removal To: David Neeley, City Manager From: Chuck Gilman, P.E., PMP, Public Works Director Agenda Caption: Public Hearing, presentation, possible action and discussion of an ordinance amending Chapter 10 “Traffic Code”, to remove parking along specific streets in the Buena Vida Subdivision. Relationship to Strategic Goals: Core Services and Infrastructure – Maintain a Fire ISO ratio of 2 or better. Recommendation(s): Staff recommends approval of the ordinance amendment. Summary: Buena Vida is a residential subdivision located off Rock Prairie Road, west of Wellborn Road (FM 2154). Due to the high utilization of on-street parking along the streets of the subdivision, it has become very challenging for an emergency vehicle to travel down the streets to provide emergency services if they are needed. The city’s Traffic Management Team discussed this item and recommends that parking be removed from one side of Keefer Loop as well as Cullen Trail so that emergency vehicle access and response time to the residences of the neighborhood can be maintained. The team recommends that the parking be removed from the fire hydrant side of the street. In an effort to enhance communication with the stakeholders in the area, letters were mailed to the property owner and tenant along the streets being considered for parking removal to notify them of the public hearing. Budget & Financial Summary: The “NO PARKING” signs are planned operation and maintenance expenses accounted for in the Public Works Traffic Operation budget. Attachments: 1. Ordinance 2. Map 3. 112 113 114 LEGEND Proposed Parking Removal Fire Hydrant 115 December 13, 2012 Regular Agenda Item No. 2 College Station Medical District Tax Increment Reinvestment Zone 18 To: David Neeley, City Manager From: Bob Cowell, AICP, CNU-A, Executive Director of Planning & Development Services Agenda Caption: Public Hearing, presentation, possible action and discussion regarding an Ordinance designating the western portion of the College Station Medical District as Reinvestment Zone Number 18, City of College Station, Texas, Enumerating the qualifying criteria, adopting a preliminary development and financing plan, and establishing a Board of Directors for such Zone, and other matters relating thereto Relationship to Strategic Goals: Core Services and Infrastructure, Financially Sustainable City, Diverse Growing Economy, and Improving Mobility Recommendation: Staff recommends approval. Summary: In October of 2012, the City Council approved an amendment of the City’s Comprehensive Plan to include the College Station Medical District Master Plan. To realize the Vision and economic development opportunities realized in the Master Plan, significant barriers to development must be overcome. These barriers include, but are not limited to lack of basic infrastructure (potable water, fire flow, sanitary sewer, etc) to serve development in the area and lack of transportation capacity (vehicular, pedestrian, etc) to meet the mobility needs present in the area. The approved Master Plan identified a series of financial and management tools necessary to overcome these barriers and to maximize the development potential of the area. A key tool identified in the Master Plan is the use of Tax Increment Reinvestment Zones (TIRZ). Staff has proposed the establishment of two TIRZ in the District. This request addresses TIRZ A, which encompasses the area near the SH6/Rock Prairie Road Bridge and includes both hospitals in the District. Development projects in this area include Rock Prairie Road (East and West), Normand Drive Extension, and other public works. It is projected that new development in this portion of the District will meet or exceed $117 Million over a twenty year period. This development activity would yield an increment of approximately $8.4 Million in tax proceeds. These proceeds would be used to fund the required improvement projects, either through repayment of debt or on a “pay as you go” cash basis. Budget & Financial Summary: Refer to the Preliminary Project and Finance Plan Reviewed and Approved by Legal: Yes Attachments: 1. Ordinance 2. TIRZ Boundary Map and Legal Description 3. Preliminary Project and Financing Plan 116 117 118 119 120 121 Joe Orr, Inc. Surveyors & Engineers 2167 Post Oak Circle College Station, Texas 77845 (979) 693-2777 Tax Increment Reinvestment Zone area A -482.88 acres College Station, Texas December 2012 All that certain tract or parcel ofland lying and being situated in the Crawford Burnett league (abstract no. 7), Robert Stevenson league (abstract no. 54) and Thomas Caruthers league (abstract no. 9) in College Station, Brazos County, Texas, generally being an area centered around the intersection of Rock Prairie Road and State Highway no. 6, and the boundary being more particularly described as follows: Beginning at the intersection of the south right-of-way line of Rock Prairie Road East (60 feet south of surveyed centerline) and the east boundary of Block 7 of the Scott & White Healthcare Subdivision (vol. 10179, pg. 50), being the northeast comer of Lot 1, Block 7 of said subdivision, and from where the City of College Station GPS control monument no. 9 bears S 82° 02' 35" E ­ 7016.5 feet. Thence along the east boundary lines of said Scott & White subdivision as follows: S 2° 42' 34" E 1023.83 feet, S 50° 49' 32" W 930.60 feet, S 47° 37' II" E -128.13 feet and S 41 ° 15' 39" W -1224.44 feet to the northeast right-of-way line of State Highway no. 6; Thence along the said highway northeast right-of-way lines as follows: S 34° 27' 2&' E -55.00 feet, S 27° 43' 31" E 192.30 feet, S 36° 45' 17" E -383.87 feet and S 42 0 27' 25" E -105.18 feet to a southeast line ofthat M.D. Wheeler, Ltd. 10.01 acre Tract One (vol. 3007, pg. 341); Thence along the southeast lines of said M.D. Wheeler Tract One and the southwest lines of71.52 acre Tract Two as follows: N 41 0 43' 32" E -194.25 feet, N 21 0 27' 46" E -145.09 feet, S 46° 46' 09" E 304.24 feet and S 47° 42' 33" E 177.08 feet to the west comer of that IHD Properties, LLC 2.77 acre Tract One (vol. 10144, pg. 203); Thence along the north, east and south lines of said ruD Properties tract as follows: N 72° 19' 02" E -202.14 feet, S 47° 42' 56" E -638.83 feet and S 42° 17' 04" W 175.00 feet to the northeast common comer ofthe Harley Subdivision (vol. 3961, pg. 236) and Cooper's Subdivision (vol. 4708, pg. 230) in a southwest line of said Wheeler Tract Two; Thence S 47° 42' 16" E 1053.70 feet along the northeast line of said Cooper's Subdivision and continuing along the northeast line of the Barker Subdivision (vol. 5101, pg. 182) to its east comer; TIRZA Page 1 of4 122 Thence S 38° 51' 07" W -279.95 feet along the southeast line of said Barker Subdivision to its south comer in the northeast line of State Highway no. 6, also being a west comer of the City of College Station 46.60 acre tract (vol. 3310, pg. 321); Thence crossing said highway and along its southwest right-of-way lines as follows: S 58° 32' 52" W -37150 feet, N 49° 25' 00" W -238.23 feet, N 43° 42' 22" W -201.00 feet, N 49° 25' 00" W -1400.00 feet, N 46° 52' 14" W -413.20 feet, N 38° 34' 52" W ­ 507.10 feet, N 32° 13' 53" W -534.28 feet, N 27° 56' 32" W 20056 feet, N 32° 13' 53" W -400.00 feet, N 35° 05' 29" W -200.28 feet and N 82° 25' 23" W -78.10 feet to the westerly north comer of Lot 1, Block 1 of Graham Comer Plaza (vol. 5878, pg. 129) in the southeast line of Graham Road; Thence N 40° 30' 48" W -71.60 feet across Graham Road to the east comer of the remainder of the Jack E. Winslow, Jr. 3.0 acre tract (vol. 2291, pg 140 and vol. 2835, pg. 180) in the northwest line of Graham Road (vol. 2086, pg. 58); Thence along the northwest right-of-way line of Graham Road as follows: S 41 ° 41' 25" W -433.76 feet, N 32° 18' 49" W -4.79 feet, S 41° 40' 07" W 268.44 feet, S 41° 31' 43" W -131.06 feet to the northeast line of Longmire Drive, S 39° 15' 59" W­ 111.70 feet across Longmire Drive, S 41 ° 33' 01" W -898.96 feet, S 42° 04' 18" W -521.46 feet and S 41 ° 03' 13" W 698.60 feet to the southwest line of the F.M. and Olive Arnold 50 acre tract (vol. 200, pg. 445); Thence N 47° 5W 34" W 1570.55 feet along the said southwest line of the Arnold tract to the south comer ofthe Sancy and Hsin Wu 0.46 acre tract (vol. 2336, pg. 233); Thence N 47° 26' 15" W -219.05 feet along the southwest line of the Wu tract to the north comer of the Carroll Addition (vol 5229, pg. 47); Thence N 47° 33' 07" W -69.71 feet across Arnold Road to the north comer of the 0.156 acre road dedication tract (voL 5027, pg. 162); Thence along the northwest lines of Arnold Road as follows: S 63 ° 10' 11" W -180.26 feet, to the beginning of a tangent curve to the left with a radius of 405.00 feet, along said curve through a central angle of 17° 37' 25" to the end of said curve, and S 55° 19' 37" W 5.32 feet to the east comer of the City of College Station 9.93 acre tract (vol. 448, pg. 230); Thence along the south, west and north boundary of Brian Bachmann Athletic Park (formerly Southwood Athletic Park) and continuing along Rock Prairie Road as follows: S 41 ° 59' 07" W -1027.13 feet along the northwest line of Arnold Road and southeast lines of the said City 9.93 acre tract and the City 15.89 acre tract (vol. 448, pg. 232), N 43° 45' 01" W 1185.92 feet, along the southwest line of said 15.89 acre tract to the southeast right-of­ way line of Rock Prairie Road (80' RO.W. -vol. 779, pg. 571), N 51 ° 57' 01" E -1177.50 feet along said southeast line of Rock Prairie Road to the beginning of a tangent curve to the right with a radius of 1006.62 feet in the southeast boundary of Southwood Terrace Phase 3-C TIRZ A Page 2 of 4 123 (vol. 523, pg. 431), along said curve through a central angle of 8° 11' 51" to the point of tangency, N 60° 08' 52" E -1486.99 feet along the southeast boundary of Southwood Terrace Phase 3-B (vol. 579, pg. 380) and Phase 3-A (vol. 519, pg. 378) to the beginning ofa tangent curve to the right with a radius of 960.00 feet, along said curve through a central angle of 18° 38' 31" to the point of tangency, N 78° 47' 23" E -14.90 feet and N 11° 12' 37" W 79.72 feet across Rock Prairie Road to the southwest comer of the Remington Subdivision (vol. 1239, pg. 219); Thence along the west boundary lines of said Remington Subdivision, the northwest boundary of Tract B, Ponderosa Place Section Two (vol. 2680, pg. 321) and Longmire Place (vol. 3377, pg. 155) and along the southwest boundary of Ponderosa Place (vol. 490, pg. 169) as follows: N 26° 55' 04" W -252.32 feet, N 17° 18' 19" E-259.07 feet, N 42° 34' 17" E 624.79 feet and N 40° 39' 13" W 796.43 feet to the west comer of Lot 4, Block 21 of Ponderosa Place, in the southeast line of Ponderosa Road; Thence N 49° 20' 47" E -1150.00 feet, along the southeast right-of-way line of Ponderosa Road, to the north comer of Lot 1, Block 19 of Ponderosa Place, in the southwest right-of-way of State Highway no. 6; Thence along the said highway southwest right-of-way lines as follows: S 40° 39' 13" E 480.00 feet, S 32° 12' 28" E -185.04 feet, S 41° 13' 02" E 80.23 feet and S 17° 22' 13" E -34.06 feet to the southeast line of Lot 1, Block 20 of Ponderosa Place; Thence N 78° 53' 01" E 493.32 feet, across State Highway no. 6 to the west comer of Lot 2-B, Block One of Cornerstone Commercial Section One (vol. 3922, pg. 282) in the southeast right-of­ way line of Wood creek Drive; Thence along the southeast right-of-way of Wood creek Drive as follows: Along the arc of a curve to the right with a radius of 890.00 feet, through a central angle of 9° 52' 07", the chord of which bears N 52° 46' 54" E -153.10 feet, N 57° 42' 58" E -318.00 feet to the beginning of a tangent curve to the left with a radius of 835.00 feet, along said curve through a central angle of 8° 00' 00" to the north comer of Lot 1 (voL 3283, pg. 201); Thence along the northeast lines of Lot 1 and Lot 2-A of said Cornerstone Commercial Section One as follows: S 40° 17' 03" E -155.81 feet to the east common comer of Lot 1 and Lot 2-A and the beginning of a tangent curve to the right with a radius of 600.00 feet, along said arc through a central angle of 16° 01' 29" to the point of tangency, and S 24° 15' 34" E 280.69 feet to the most easterly comer of said Lot 2-A; Thence along the south boundary lines of Wood creek Section 4 (vol. 1315, pg. 217), Section Six South (vol. 2109, pg. 199) and Section Seven (vol. 2580, pg. 113), defining the north boundary lines of the remainder of the Edward Jr. and Beatrice Uvaceck tract (vol. 274, pg. 383 and vol. 321, pg. 664), as follows: N 24° 13' 07" E -555.17 feet, N 79° 45' 53" E -313.69 feet, S 48° 05' 30" E -216.00 feet, S 44° 28' 03" E -75.26 feet, S 28° 11' 32" E -108.12 feet, S 34° 34' 23" E -162.74 feet, TIRZA Page 3 of4 124 S 39° 46' 00" E -149.62 feet, S 44° 34' 42" E -282.83 feet, N 24° 16' 33" E -134.65 feet and N 68° s2~ 20" E 230.83 feet to the northwest comer of the Riviera Addition (vol. 6607, pg.97); Thence S 15° 28' IS" E -269.56 feet, along the west line of said Riviera Addition, to the north right-of-way line of Rock Prairie Road East (59.0 feet north of surveyed centerline); Thence S 86° 2T 34" E -961.09 feet, along said north right-of-way line, to its intersection with an extension of the east boundary of Block 7 of the Scott & White Healthcare Subdivision; Thence S 2° 42' 34" E -120.04 feet, across Rock Prairie Road, to the Point of Beginning and containing 482.88 acres of land more or less. Bearings are Texas State Plane, NAD-83(CORS) datum, based on City of College Station GPS control points and GPS observations. Volume and page numbers cited refer to the Brazos County public records. No monuments were set for this survey and found monuments are not cited. This document was prepared under 22 TAC §663.21 does not reflect the results of an on the ground survey and is not to be used to conveyor establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. See survey plat prepared with this description, dated December 2012. TIRZA Page 4of4 125 126 City of College Station TAX INCREMENT REINVESTMENT ZONE NUMBER 18 Preliminary Project Plan and Preliminary Financing Plan December 13, 2012 127 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 2 Table of Contents Overview Executive Summary 3 Tax Increment Financing 5 Tax Increment Reinvestment Zone Number 18 6 Priority Projects and Costs 7 Benefits to Taxing Jurisdictions 8 Statutory Requirements for the final Project Plan and Financing Plan 9 Project Plan Existing Conditions and Proposed Improvements 11 Proposed Changes of Municipal Ordinances 17 List of Nonproject Costs 18 Method of Relocating Persons to be Displaced 19 Financing Plan List of Project Costs 20 Statement of Public Works/Public Improvements 21 Economic Feasibility Study 22 Estimated Amount of Bonded Indebtedness 23 Time When Costs or Obligations are Incurred 24 Financing Methods and Expected Sources of Revenue 25 Current Total Appraised Value of Property in the Zone 27 Estimated Captured Value of Zone in Each Year of Existence 28 Duration of Zone 29 Appendix Estimated TIRZ Number 18 Project Costs 31 Estimated TIRZ Number 18 Revenue 32 TIRZ Number 18 Legal Description 33 Medical District Master Plan – Chapters 3 & 4 38 128 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 3 Executive Summary In 2011 the City of College Station partnered with the College Station Medical Center (The Med) and other stakeholders in the creation of a Medical District to serve as a focused healthcare and wellness district within the City. The Medical District focuses on the general area around State Highway 6 and Rock Prairie Road, and includes The Med and the future Scott & White Hospital, both along Rock Prairie Road. The City’s consulting team, led by Schrickel, Rollins and Associates, Inc. worked with a City Council appointed Advisory Committee consisting of various stakeholders from throughout the community. The Advisory Committee, consultant team, and staff completed their work on the draft plan for the Medical District in late 2011 and the results were presented to a joint meeting of the City Council and the Advisory Committee. Staff then continued to work to refine the land use and transportation components of the Master Plan, including expanding the Medical District to include properties further to the south. Adopted October 11, 2012, the Medical District Master Plan was an amendment to the City’s Comprehensive Plan, altering the Future Land Use and Character map, the City’s Thoroughfare Plan, and Thoroughfare Context map. In response to changed thoroughfare alignments, the City’s Water Master Plan, Proposed Pedestrian Facilities, and Proposed Bicycle Facilities maps will also need to be amended in conjunction with the new thoroughfares. Additional trails have been added to the Proposed Pedestrian Facilities map in the Bicycle, Pedestrian, and Greenways Master Plan to create the walkable community envisioned by the Medical District Master Plan. An Implementation Report was written by City staff to accompany the Master Plan. The Report provides details regarding potential development regulations and standards, management structure, funding mechanisms, and capital expenditures needed for the success of the Medical District. The Report recommended the pursuance of the creation of Municipal Management Districts and Tax Increment Reinvestment Zones (TIRZ) as the two most appropriate tools to facilitate the implementation of the Medical District. Prior to the creation of any TIRZ, the City must develop a Preliminary Financing Plan. A Preliminary Project Plan and the Preliminary Financing Plan identify the proposed projects, and demonstrate the financing method and expected increment for the Zone. 129 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 4 This document serves as the Preliminary Project Plan and Preliminary Financing Plan for the Tax Increment Reinvestment Zone Number 18, City of College Station, as required by Chapter 311 of the Texas Tax Code. In addition to implementing the Medical District, the purpose of the Zone, in conjunction with a Municipal Management District, is to provide an opportunity to further diversify the economic base and enhance the overall quality of life for all College Station residents. The Zone is to finance public improvements related to construction of roadways, drainage, water, sanitary sewer, storm sewer, internet broadband, trails, greenways and open spaces to support development of medical uses, commercial activity, single family residential units, and multi- family units in the City of College Station Medical District. In accordance with Section 311.010(h), Texas Tax Code, the Zone’s board of directors will develop and submit for City Council approval programs for the public purpose of developing or expanding transportation services, water and wastewater services, internet broadband, and greenway trails, parks and open space infrastructure, to encourage medical activity, other business and commercial activity and residential development in the Zone. In addition, a Municipal Management District is proposed to be created through the Texas Legislature with boundaries generally contiguous to the Zone proposed in this Plan. A Municipal Management District is a special district created for the purpose of promoting, developing, encouraging, and maintaining employment, commerce, economic development, and general public welfare within a defined area. Its overall purpose is to supplement city services within the district. The management district may be funded by assessments on property within its boundaries to provide public projects and services such as landscaping, lighting, signage, streets and walkways, drainages, solid waste, water, wastewater, internet broadband, parks, parking facilities, transit systems, works of art, economic development and others. 130 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 5 Tax Increment Financing The Texas Constitution and multiple State statutes identify the role of economic development by both the State and its municipalities as a public purpose. While recognizing there is no single strategy, policy, or program for economic development, the Texas Legislature has created a vast array of tools that local governments have at their disposal. The objective of these tools is to not only encourage development and diversification of the Texas economy, but to simultaneously enhance the participating community’s overall quality of life. Such available tools were carefully evaluated in order to determine how best to implement the College Station Medical District from both an administrative and financial perspective. Participation in tax increment financing through the creation of a Tax Increment Reinvestment Zone is one such tool. According to the Texas Comptroller’s Biennial Report of Tax Increment Financing Zone Registry, as of December 2010, there were 172 reported tax increment reinvestment zones in Texas. Tax increment financing is used to provide large capital projects, infrastructure improvements, or other hard-costs within a created zone. These costs are funded by the increase, or tax increment, of future ad valorem tax revenue within the zone for a participating jurisdiction (e.g. City of College Station, Brazos County). A jurisdiction may dedicate all, a portion, or none of the tax increment to the fund. 131 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 6 Tax Increment Reinvestment Zone Number 18 The College Station Medical District Tax Increment Reinvestment Zone Number 18 is located generally at the intersection of State Highway 6 and Rock Prairie Road. The Zone encompasses Brian Bachmann Community Park to the west, the College Station Medical Center along Rock Prairie Road, and the future Scott & White Hospital to the east. The zone also includes parcels along Longmire Drive to the north and south of Rock Prairie Road, and the frontage of State Highway 6 to Barron Road. The legal description of the Zone can be found in the Appendix. 132 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 7 Priority Projects and Costs Most of the existing businesses, multi-tenant shopping centers, multi-tenant office buildings, and medically oriented developments that currently exist in the Medical District are located west of State Highway 6. Existing development east of State Highway 6 includes a small amount of retail and commercial, and the new Scott & White Hospital currently under construction. Throughout this Zone there are a few scattered vacant parcels, which are generally less than 25 acres, and potentially available for infill development. All identified costs are for infrastructure to serve the Zone, and are within the Medical District and Zone boundaries. The infrastructure identified and estimated in this document is for the primary or main infrastructure to serve the area. Additional infrastructure may be required by and with future developments. This primary infrastructure has been previously planned and sized through general master planning efforts such as the Thoroughfare Plan, Wastewater Master Plan, etc. A future water tower near Scott & White Hospital campus and a future Graham Road Electric SubStation, as identified in the City Master Plans, have not been included in these estimates as each were not deemed necessary for the specific development of the District; though again, each would be appropriate for future planning consideration. The provided estimates were intended to be conservative or inflated, to account for design costs, future construction costs, unforeseen considerations, some enhancements, and contingencies. In the future, with more detailed information, the estimates should be updated for more accurate planning. Thoroughfares Description From To Class Pvmt (ft) Length (ft) Cost ($) Rock Prairie E SH 6 Bird Pond 4 Ln Maj Art 78 5,200 $3,302,000 Rock Prairie W Longmire Normand 4 Ln Min Art 72 1,800 $2,502,000 PROJECTS TOTAL = $5,804,000 133 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 8 Benefits to Taxing Jurisdictions It should be noted that the planned infrastructure is required for the continued development of this area even if the Zone is not formed. However, this effort, in short, plans to focus and broaden medical and urban uses, enhance and accelerate the delivery of primary infrastructure, and establish financial mechanisms to make this possible and attractive, to ultimately bring an increased tax base of medical uses and activity, as well as urban densities, which likely would not occur otherwise. It is anticipated that the proposed improvements in this plan will support the basis for nearly $117 million in combined commercial and residential capital development within the City of College Station, Brazos County, and the College Station Independent School District. Years 1-5 Residential $0 Non-Residential $27 Million Years 6-10 Residential $0 Non-Residential $46 Million Years 11-20 Residential $0 Non-Residential $44 Million Estimated Total $117 Million This assumes a new medical user early in the duration of the Zone and new commercial users prior to the end of the Zone. These assumptions do not include any project for value added at the College Station Medical Center or from the future Strategic Behavioral Health hospital. 134 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 9 Statutory Requirements for the final Project Plan and Financing Plan Texas Tax Code Subtitle B – Special Property Tax Provisions Chapter 311 – Tax Increment Financing Act Section 311.011 – Project and Financing Plans (a) The board of directors of a reinvestment zone shall prepare and adopt a project plan and a reinvestment zone financing plan for the zone and submit the plans to the governing body of the municipality or county that designated the zone. (b) The project plan must include: (1) a description and map showing existing uses and conditions of real property in the zone and proposed uses of that property; (2) proposed changes of zoning ordinances, the master plan of the municipality, building codes, other municipal ordinances, and subdivision rules and regulations, if any, of the county, if applicable; (3) a list of estimated nonproject costs; and (4) a statement of a method of relocating persons to be displaced, if any, as a result of implementing the plan. (c) The reinvestment zone financing plan must include: (1) a detailed list describing the estimated project costs of the zone, including administrative expenses; (2) a statement listing the proposed kind, number, and location of all public works or public improvements to be financed by the zone; (3) a finding that the plan is economically feasible and an economic feasibility study; (4) the estimated amount of bonded indebtedness to be incurred; (5) the estimated time when related costs or monetary obligations are to be incurred; (6) a description of the methods of financing all estimated project costs and the expected sources of revenue to finance or pay project costs, including the percentage of tax increment to be derived from the property taxes of each taxing unit anticipated to contribute tax increment to the zone that levies taxes on real property in the zone; (7) the current total appraised value of taxable real property in the zone; (8) the estimated captured appraised value of the zone during each year of its existence; and (9) the duration of the zone. (d) The governing body of the municipality or county that designated the zone must approve a project plan or reinvestment zone financing plan after its adoption by the board. The approval must be by ordinance, in the case of a municipality, or by order, in the case of a county, that finds that the plan is feasible. (e) The board of directors of the zone at any time may adopt an amendment to the project plan consistent with the requirements and limitations of this chapter. The amendment takes effect on approval by the governing body of the municipality or county that created the zone. That approval must be by ordinance, in the case of a municipality, or by order, in the case of a 135 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 10 county. 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). (f) In a zone designated under Section 311.005(a)(4) that is located in a county with a population of 3.3 million or more, the project plan must provide that at least one-third of the tax increment of the zone be used to provide affordable housing during the term of the zone. (g) A school district that participates in a zone is not required to increase the percentage or amount of the tax increment to be contributed by the school district because of an amendment to the project plan or reinvestment zone financing plan for the zone unless the governing body of the school district by official action approves the amendment. (h) Unless specifically provided otherwise in the plan, all amounts contained in the project plan or reinvestment zone financing plan, including amounts of expenditures relating to project costs and amounts relating to participation by taxing units, are considered estimates and do not act as a limitation on the described items, but the amounts contained in the project plan or reinvestment zone financing plan may not vary materially from the estimates. This subsection may not be construed to increase the amount of any reduction under Section 403.302(d)(4), Government Code, in the total taxable value of the property in a school district that participates in the zone as computed under Section 403.302(d) of that code. Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 1137, Sec. 24, eff. Sept. 1, 1989; Acts 1999, 76th Leg., ch. 983, Sec. 4, eff. June 18, 1999; Acts 2001, 77th Leg., ch. 669, Sec. 120, eff. Sept. 1, 2001.Amended by: Acts 2005, 79th Leg., Ch. 1094, Sec. 43, eff. September 1, 2005.Acts 2007, 80th Leg., R.S., Ch. 921, Sec. 14.010, eff. September 1, 2007.Acts 2011, 82nd Leg., R.S., Ch. 1032, Sec. 11, eff. June 17, 2011. 136 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 11 Existing Conditions and Proposed Improvements “A description and map showing existing uses and conditions of real property in the zone and proposed uses of that property” The following maps represent the existing land use, comprehensive land use plan, and proposed improvements to the Zone. Existing Land Use 137 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 12 Comprehensive Land Use Plan 138 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 13 Thoroughfares Description From To Class Pvmt (ft) Length (ft) Cost ($) Rock Prairie E SH 6 Bird Pond 4 Ln Maj Art 78 5,200 $3,302,000 Rock Prairie W Longmire Normand 4 Ln Min Art 72 1,800 $2,502,000 139 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 14 Wastewater No projects at this time. 140 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 15 Water No projects at this time. 141 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 16 Greenway Trails No projects at this time. 142 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 17 Proposed Changes of Municipal Ordinances “Proposed changes of zoning ordinances, the master plan of the municipality, building codes, other municipal ordinances, and subdivision rules and regulations, if any, of the county, if applicable” Adopted October 11, 2012, the Medical District Master Plan was an amendment to the City’s Comprehensive Plan, altering the Future Land Use and Character map, the City’s Thoroughfare Plan, and Thoroughfare Context map. In response to changed thoroughfare alignments, the City’s Water Master Plan, Proposed Pedestrian Facilities, and Proposed Bicycle Facilities maps will also need to be amended in conjunction with the new thoroughfares. Additional trails have been added to the Proposed Pedestrian Facilities map in the Bicycle, Pedestrian, and Greenways Master Plan to create the walkable community envisioned by the Medical District Master Plan. All infrastructure is proposed to follow the Bryan / College Station Unified Design Standards, except as otherwise noted in the Medical District Master Plan. The City of College Station has also adopted the following International Building Codes to regulate construction: • International Building Code (2012 Edition) with Adopted Amendments • International Residential Code (2012 Edition) with Adopted Amendments • International Plumbing Code (2012 Edition) with Adopted Amendments • International Mechanical Code (2012 Edition) with Adopted Amendments • International Fuel Gas Code (2012 Edition) with Adopted Amendments • International Energy Conservation Code (2012 Edition) with Adopted Amendments • International Property Maintenance Code (2012 Edition) with Adopted Amendments • International Fire Code (2012 Edition) with Adopted Amendments • International Life Safety Code (2012 Edition) • National Electrical Code (2011 Edition) with Adopted Amendments 143 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 18 List of Nonproject Costs “A list of estimated nonproject costs” Significant to the success of the Medical District, the following items were not included or estimated within this Preliminary Project Plan: way-finding, district branding, hardscape enhancements, transit, bus stops, and other nonproject costs. Such costs may be funded from developers, the City, a Municipal Management District, and/or other sources. Though the majority of the needed infrastructure projects are unfunded, there is also certain funded capital projects considered to be nonproject costs. These funded projects generally mean either the project was included and approved with a bond election (i.e. Thoroughfares and Trails), included within Water Services 5-Year Budget (i.e. Water and Wastewater Mains), funded by the State, or funded privately, etc. Funded does not necessarily mean that construction costs are currently appropriated. Thoroughfares Description From To Class Pvmt (ft) Length (ft) Cost ($) Rock Prairie BR - - Bridge - - $4,600,000 Rock Prairie W SH 6 Longmire 6 Ln Maj Art 81 700 $2,407,000 Normand Rock Prairie Arnold 2 Ln Min Coll 38 800 $616,000 144 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 19 Method of Relocating Persons to be Displaced “A statement of a method of relocating persons to be displaced, if any, as a result of implementing the plan” There is no intended displacement of residents. 145 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 20 List of Project Costs “A detailed list describing the estimated project costs of the zone, including administrative expenses” The following table itemizes the project costs for the Zone for which reimbursement is available. Total project costs are estimated in today’s dollars to be $5,904,000. Project costs include roadway improvements including design costs, sidewalks, streetlights, signals, pavers, enhanced vegetation etc. Of this amount administrative and implementation expenses are estimated to be $100,000 over the 20 year life of the TIRZ. Pursuant to Chapter 311, Texas Tax Code, line items may be adjusted with approval of the TIRZ board of directors. These cost estimates will be revised as more detailed design occurs on the individual projects. Estimated TIRZ Number 18 Project Costs Estimated Infrastructure Costs Rock Prairie Road West - Longmire to Normand 2,502,000$ Rock Prairie Road East - SH 6 to Bird Pond 3,302,000 Streets Subtotal 5,804,000$ Other Costs Developer Reimbursement Interest -$ Organizational Costs, Zone Creation and Administration 100,000 Permitting and Related Fees - Subtotal 100,000$ Total Estimated Costs 5,904,000$ 146 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 21 Statement of Public Works/Public Improvements “A statement listing the proposed kind, number, and location of all public works or public improvements to be financed by the zone” The public infrastructure improvements that the TIRZ is designed to facilitate will be located throughout the Zone. These improvements will provide public infrastructure for the Medical District to include commercial and residential development. This infrastructure includes street widening projects. The Map on page 13 illustrates the location of the improvements within the Zone. The following is a list of improvements to be made in the Zone using funds generated in the Zone. Street Widening Infrastructure Rock Prairie Road West – From Longmire to Normand Rock Prairie Road East – From SH 6 to Bird Pond 147 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 22 Economic Feasibility Study “A finding that the plan is economically feasible and an economic feasibility study” Included in the Medical District Master Plan and as part of its corresponding work efforts, the City’s consultant team conducted market research and a market analysis to determine the economic feasibility of 1,700 acres that encompasses the Zone and adopted Medical District. The analysis included, but was not limited to, medical/healthcare uses, retail/village center, senior housing, and single-family/multi-family housing. The market research, market analysis, and resulting development program can be found in the Appendix. Prior to the adoption of the Final Financing Plan an Economic Feasibility Study will be completed on the estimated impact of the $117,000,000 in new development that is projected over the life of the Zone. 148 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 23 Estimated Amount of Bonded Indebtedness “The estimated amount of bonded indebtedness to be incurred” Bonds may be issued by the City of College Station and the MMD pursuant to an interlocal agreement with the Zone which pledges incremental revenue for debt service. Bond sizing will be based on the maximum amount Zone revenues could reasonably sustain according to the City’s financial advisor and market conditions at the time of issuance. 149 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 24 Time When Costs or Obligations are Incurred “The estimated time when related costs or monetary obligations are to be incurred” The time when related costs or monetary obligations are to be incurred is a function of the availability of TIRZ revenues. Details of the time when related costs or monetary obligations may be incurred are shown on the following table. This summary shows the time when TIRZ revenues are expected to be available to pay project costs. Estimated TIRZ Number 18 Revenue 100%83.94%Annual New New Non Res &Total New Captured COCS BC Total TIF Residential Multi Family Development Appraised Value Tax Revenue Tax Revenue Revenue Year 1 $0 $1,000,000 $1,000,000 1,000,000$ 4,307$ -$ 4,307$ Year 2 $0 $4,000,000 $4,000,000 5,000,000$ 21,534$ -$ 21,534$ Year 3 $0 $5,000,000 $5,000,000 10,000,000$ 43,069$ -$ 43,069$ Year 4 $0 $5,000,000 $5,000,000 15,000,000$ 64,603$ -$ 64,603$ Year 5 $0 $12,000,000 $12,000,000 27,000,000$ 116,285$ -$ 116,285$ Year 6 $0 $2,000,000 $2,000,000 29,000,000$ 124,899$ 118,062$ 242,961$ Year 7 $0 $8,000,000 $8,000,000 37,000,000$ 159,354$ 150,630$ 309,985$ Year 8 $0 $10,000,000 $10,000,000 47,000,000$ 202,423$ 191,341$ 393,764$ Year 9 $0 $10,000,000 $10,000,000 57,000,000$ 245,492$ 232,052$ 477,544$ Year 10 $0 $16,000,000 $16,000,000 73,000,000$ 314,402$ 297,190$ 611,591$ Year 11 $0 $1,000,000 $1,000,000 74,000,000$ 318,708$ 301,261$ 619,969$ Year 12 $0 $4,000,000 $4,000,000 78,000,000$ 335,936$ 317,545$ 653,481$ Year 13 $0 $4,000,000 $4,000,000 82,000,000$ 353,163$ 267,064$ 620,227$ Year 14 $0 $4,000,000 $4,000,000 86,000,000$ 370,391$ 280,091$ 650,482$ Year 15 $0 $9,000,000 $9,000,000 95,000,000$ 409,153$ 232,052$ 641,205$ Year 16 $0 $1,000,000 $1,000,000 96,000,000$ 413,460$ 234,495$ 647,954$ Year 17 $0 $4,000,000 $4,000,000 100,000,000$ 430,687$ 162,844$ 593,531$ Year 18 $0 $4,000,000 $4,000,000 104,000,000$ 447,914$ 169,357$ 617,272$ Year 19 $0 $4,000,000 $4,000,000 108,000,000$ 465,142$ 87,936$ 553,078$ Year 20 $0 $9,000,000 $9,000,000 117,000,000$ 503,904$ 95,264$ 599,167$ $0 $117,000,000 $117,000,000 5,340,519$ 3,137,182$ 8,482,008$ Brazos County 20 Years O&M Rate Years 1-5 0% Years 6-12 100% Years 13-14 80% Years 15-16 60% Years 17-18 40% Years 19-20 20% 150 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 25 Financing Methods and Expected Sources of Revenue “A description of the methods of financing all estimated project costs and the expected sources of revenue to finance or pay project costs, including the percentage of tax increment to be derived from the property taxes of each taxing unit anticipated to contribute tax increment to the zone that levies taxes on real property in the zone” Methods of Financing – Within this Zone, the City will likely finance a portion of the cost of the projects through the sources outlined below. Sources of Tax Increment Revenues – The tax increment revenue necessary to pay the project costs is expected to come from increased property values in the Zone due to the construction of new commercial and residential buildings in the Zone. A Participation Agreement will be entered into with Brazos County formalizing the level of participation from Brazos County. Captured Value The following schedule shows the residential and commercial development schedules, and the assessed valuations resulting from the development. This represents the estimated incremental property values associated with the development. It is estimated that there will be $117,000,000 in captured property value in the Zone. Participation Levels City of College Station will participate at 100% of its ad valorem tax rate. Brazos County is proposed to participate with only the M&O portion of its ad valorem tax rate at the following levels. Years 1–5 0% Years 15-16 60% Years 6-12 100% Years 17-18 40% Years 13-14 80% Years 19-20 20% Estimated TIRZ Revenue The estimated captured property value in the Zone of $117,000,000 will generate captured property tax revenue from the City of College Station and Brazos County totaling $8.5 million over the life of the TIRZ. These new revenues will be used to pay for a portion of the costs in the Zone. 151 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 26 Other Revenue Sources – The City will provide other sources of revenue to fund a portion of these projects. • Funds generated through a proposed Municipal Management District (MMD) may also be a potential revenue source for the projects. • Property tax revenues in the General Debt Service Fund may be used for the transportation and Trail projects through future bond authorizations for the issuance of General Obligation Bonds and/or the issuance of Certificates of Obligation. • If necessary, existing cash resources from the City’s General Fund may also be utilized to fund these projects. Estimated TIRZ Number 18 Revenue 100%83.94%Annual New New Non Res &Total New Captured COCS BC Total TIF Residential Multi Family Development Appraised Value Tax Revenue Tax Revenue Revenue Year 1 $0 $1,000,000 $1,000,000 1,000,000$ 4,307$ -$ 4,307$ Year 2 $0 $4,000,000 $4,000,000 5,000,000$ 21,534$ -$ 21,534$ Year 3 $0 $5,000,000 $5,000,000 10,000,000$ 43,069$ -$ 43,069$ Year 4 $0 $5,000,000 $5,000,000 15,000,000$ 64,603$ -$ 64,603$ Year 5 $0 $12,000,000 $12,000,000 27,000,000$ 116,285$ -$ 116,285$ Year 6 $0 $2,000,000 $2,000,000 29,000,000$ 124,899$ 118,062$ 242,961$ Year 7 $0 $8,000,000 $8,000,000 37,000,000$ 159,354$ 150,630$ 309,985$ Year 8 $0 $10,000,000 $10,000,000 47,000,000$ 202,423$ 191,341$ 393,764$ Year 9 $0 $10,000,000 $10,000,000 57,000,000$ 245,492$ 232,052$ 477,544$ Year 10 $0 $16,000,000 $16,000,000 73,000,000$ 314,402$ 297,190$ 611,591$ Year 11 $0 $1,000,000 $1,000,000 74,000,000$ 318,708$ 301,261$ 619,969$ Year 12 $0 $4,000,000 $4,000,000 78,000,000$ 335,936$ 317,545$ 653,481$ Year 13 $0 $4,000,000 $4,000,000 82,000,000$ 353,163$ 267,064$ 620,227$ Year 14 $0 $4,000,000 $4,000,000 86,000,000$ 370,391$ 280,091$ 650,482$ Year 15 $0 $9,000,000 $9,000,000 95,000,000$ 409,153$ 232,052$ 641,205$ Year 16 $0 $1,000,000 $1,000,000 96,000,000$ 413,460$ 234,495$ 647,954$ Year 17 $0 $4,000,000 $4,000,000 100,000,000$ 430,687$ 162,844$ 593,531$ Year 18 $0 $4,000,000 $4,000,000 104,000,000$ 447,914$ 169,357$ 617,272$ Year 19 $0 $4,000,000 $4,000,000 108,000,000$ 465,142$ 87,936$ 553,078$ Year 20 $0 $9,000,000 $9,000,000 117,000,000$ 503,904$ 95,264$ 599,167$ $0 $117,000,000 $117,000,000 5,340,519$ 3,137,182$ 8,482,008$ Brazos County 20 Years O&M Rate Years 1-5 0% Years 6-12 100% Years 13-14 80% Years 15-16 60% Years 17-18 40% Years 19-20 20% 152 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 27 Current Total Appraised Value of Property in the Zone “The current total appraised value of taxable real property in the zone” The current total appraised value of taxable real property within the Zone at the time of creation was $ 146,667,620. PROP_ID OWNERNAME EXEMPTCODE LANDACRES TOTALLANDV IMPVALUE TOTALVALUE R103926 3330 LONGMIRE PARTNERSHIP 0.06 67,380.00$ 368,430.00$ 435,810.00$ R112829 4101 COLLEGE STATION LLC 1.50 445,950.00$ -$ 445,950.00$ R114958 ADAM GROUP MANAGEMENT SERVICES INC 2.20 478,860.00$ -$ 478,860.00$ R354480 ADAM GROUP MANAGEMENT SERVICES INC 6.22 1,354,930.00$ -$ 1,354,930.00$ R80073 ADAM GROUP MANAGEMENT SERVICES INC 2.28 902,590.00$ -$ 902,590.00$ R305877 ADAM GROUP MANAGEMENT SERVICES INC & 2.08 271,820.00$ -$ 271,820.00$ R305878 ADAM GROUP MANAGEMENT SERVICES INC & 1.58 310,240.00$ -$ 310,240.00$ R105327 ANGEL HERMANOS LTD 2.75 688,790.00$ 3,426,480.00$ 4,115,270.00$ R105323 ARCHLAND PROPERTY II L.P. 1.69 1,029,410.00$ 963,610.00$ 1,993,020.00$ R13824 ARNOLD OLIVE HANNA HS, OV65 14.84 326,480.00$ 44,040.00$ 370,520.00$ R37908 AUTOMOTIVE RECONSTRUCTION 1.80 176,010.00$ 545,990.00$ 722,000.00$ R114473 BARKER THOMAS R & DEBORAH LYNN 2.45 589,640.00$ -$ 589,640.00$ R37917 BENNETT BLAKE PARTNERSHIP 0.65 56,420.00$ 231,630.00$ 288,050.00$ R13914 BLUE DOLPHIN CLUB INC 2.12 599,130.00$ 99,930.00$ 699,060.00$ R37913 BORLO LLC 1.20 104,450.00$ 604,640.00$ 709,090.00$ R37904 BRAZOS VALLEY HOTEL LP 3.39 775,260.00$ 958,370.00$ 1,733,630.00$ R109427 CENTRO NP HOLDINGS 1 SPE LLC 0.30 184,440.00$ 223,210.00$ 407,650.00$ R106682 CENTRO NP HOLDINGS 1 SPE LLC 6.20 1,755,750.00$ 4,729,890.00$ 6,485,640.00$ R105317 CENTRO NP HOLDINGS 1 SPE LLC 6.05 1,711,870.00$ 4,872,970.00$ 6,584,840.00$ R72806 COLLEGE STATION CITY OF EX 34.47 1,501,510.00$ 5,165,770.00$ 6,667,280.00$ R115094 COLLEGE STATION CITY OF EX 1.00 311,450.00$ -$ 311,450.00$ R42951 COLLEGE STATION CITY OF EX 42.03 2,288,530.00$ 1,000,000.00$ 3,288,530.00$ R305099 COLLEGE STATION HOSPITAL L.P. 0.83 126,690.00$ -$ 126,690.00$ R303134 COLLEGE STATION HOSPITAL L.P. 0.59 77,100.00$ -$ 77,100.00$ R91704 COLLEGE STATION HOSPITAL L.P. 1.02 155,510.00$ -$ 155,510.00$ R105326 COLLEGE STATION HOSPITAL L.P. 3.21 489,400.00$ -$ 489,400.00$ R105325 COLLEGE STATION HOSPITAL L.P. 1.81 275,950.00$ -$ 275,950.00$ R105324 COLLEGE STATION HOSPITAL L.P. 1.26 192,100.00$ -$ 192,100.00$ R80075 COLLEGE STATION HOSPITAL L.P. 22.18 3,381,410.00$ 34,933,420.00$ 38,314,830.00$ R305097 COLLEGE STATION HOSPITAL L.P. 1.26 192,100.00$ -$ 192,100.00$ R37906 CORPORATE PROPERTY ASSOC 8 LP 0.94 92,420.00$ 330,520.00$ 422,940.00$ R305879 CS MEDICAL PROPERTIES LLC 1.50 391,700.00$ 1,850,860.00$ 2,242,560.00$ R37903 D&D MOVING & STORAGE INC 0.60 89,580.00$ 79,440.00$ 169,020.00$ R99946 DEMLA ARUNA & VASU D 1.62 352,840.00$ -$ 352,840.00$ R363603 DUKE REALTY COLLEGE STATION DEV LLC 1.00 138,030.00$ -$ 138,030.00$ R360546 IHD PROPERTIES LLC 2.77 352,930.00$ -$ 352,930.00$ R108125 IM MOTORCYCLE CAPITAL CO LTD 2.32 656,880.00$ 1,402,830.00$ 2,059,710.00$ R105318 INLAND PARTNERS ROCK PRAIRIE LTD 2.47 1,073,760.00$ 2,054,300.00$ 3,128,060.00$ R103930 INTEGRA COLLEGE STATION LLC 0.17 150,000.00$ 767,810.00$ 917,810.00$ R77058 KAHAN FAMILY LIMITED PARTNERSHIP 1.93 672,860.00$ -$ 672,860.00$ R304520 LEHTONEN INVESTMENTS LTD 0.69 268,740.00$ 278.00$ 269,018.00$ R304518 LEHTONEN INVESTMENTS LTD 1.69 661,100.00$ 1,139,252.00$ 1,800,352.00$ R304521 LEHTONEN INVESTMENTS LTD 0.47 9,170.00$ -$ 9,170.00$ R304519 LEHTONEN INVESTMENTS LTD 0.57 224,550.00$ -$ 224,550.00$ R103927 LEWALLEN WILLIAM E & DIANA A 0.07 75,380.00$ 335,130.00$ 410,510.00$ R103924 LONGMIRE PLACE OWNERS ASSOC INC 1.71 -$ -$ -$ R37918 LONGMIRE PROFESSIONAL BUILDING LTD 1.11 97,020.00$ 843,370.00$ 940,390.00$ R112830 M D WHEELER LTD 2.50 707,850.00$ -$ 707,850.00$ R77057 MCCLURE MICHAEL R & MILDRED 0.61 58,740.00$ 616,440.00$ 675,180.00$ R103931 MWM CORP 0.16 140,260.00$ 510,760.00$ 651,020.00$ R37914 PGW INVESTMENTS LLC 1.27 166,500.00$ 341,460.00$ 507,960.00$ R37919 PIRI ENTERPRISES INC 4.58 448,880.00$ -$ 448,880.00$ R37910 PRINCE JOHN 1.07 93,280.00$ 213,190.00$ 306,470.00$ R98330 PROSPERITY BANK 1.43 903,210.00$ 1,535,140.00$ 2,438,350.00$ R95149 ROCK PRAIRIE ROAD LLC 1.08 519,410.00$ 406,160.00$ 925,570.00$ R37923 ROSENBAUM-SCHOENVOGEL INVESTMENTS LP 1.99 866,340.00$ 914,870.00$ 1,781,210.00$ R102047 ROSENBAUM-SCHOENVOGEL INVESTMENTS LP 3.02 855,080.00$ 4,714,100.00$ 5,569,180.00$ R102046 ROSENBAUM-SCHOENVOGEL INVESTMENTS LP 4.00 1,132,560.00$ 4,182,410.00$ 5,314,970.00$ R108126 RSCS ENTERPRISES LP 4.00 1,087,260.00$ 1,268,940.00$ 2,356,200.00$ R359007 RSCS ENTERPRISES LP 0.87 209,990.00$ 849,110.00$ 1,059,100.00$ R93224 RUGG INVESTMENTS LLC 0.71 62,160.00$ 440,270.00$ 502,430.00$ R103928 RVE FRIENDS LTD 0.06 67,500.00$ 351,410.00$ 418,910.00$ R37905 SCARMARDO INVESTMENTS LTD 1.96 192,100.00$ 687,610.00$ 879,710.00$ R360747 SCOTT & WHITE HEALTHCARE EX 36.12 4,985,670.00$ 36,589,600.00$ 41,575,270.00$ R360753 SCOTT & WHITE HEALTHCARE 1.81 442,020.00$ -$ 442,020.00$ R360752 SCOTT & WHITE HEALTHCARE 24.37 4,916,340.00$ -$ 4,916,340.00$ R360754 SCOTT & WHITE HEALTHCARE 0.68 115,520.00$ -$ 115,520.00$ R360751 SCOTT & WHITE HEALTHCARE 5.35 1,397,400.00$ -$ 1,397,400.00$ R360755 SCOTT & WHITE HEALTHCARE 2.57 382,030.00$ -$ 382,030.00$ R360756 SCOTT & WHITE HEALTHCARE 1.09 173,600.00$ -$ 173,600.00$ R360749 SCOTT & WHITE HEALTHCARE 10.86 2,190,870.00$ -$ 2,190,870.00$ R360748 SCOTT & WHITE HEALTHCARE 7.68 1,712,430.00$ -$ 1,712,430.00$ R360750 SCOTT & WHITE HEALTHCARE 7.16 1,596,490.00$ -$ 1,596,490.00$ R114247 SCP COLLEGE STATION I LTD 1.67 1,019,410.00$ 545,830.00$ 1,565,240.00$ R89925 SECURCARE PROPERTIES I LLC 3.64 475,020.00$ 1,204,420.00$ 1,679,440.00$ R37907 SENDERO COMMERCIAL INVESTMENTS 2.05 468,820.00$ 1,652,860.00$ 2,121,680.00$ R13872 SNS INVESTMENTS LLC 0.91 5,640.00$ -$ 5,640.00$ R77288 SNS INVESTMENTS LLC 10.44 613,880.00$ 340,330.00$ 954,210.00$ R37921 TAYLOR RUTH ESTATE 1.62 423,400.00$ 696,600.00$ 1,120,000.00$ R103925 TENEO SOFTWARE SOLUTIONS 0.06 67,380.00$ 271,160.00$ 338,540.00$ R13874 TEXAS HOTEL MANAGEMENT CORP 17.06 648,240.00$ -$ 648,240.00$ R103929 TEXAS T&C PROPERTIES LLC 0.07 75,000.00$ 333,590.00$ 408,590.00$ R89224 THE BRAZOS VALLEY MASONIC LIBRARY EX 1.88 307,100.00$ 587,930.00$ 895,030.00$ R95151 TIGER HOLDINGS INC 0.88 544,990.00$ 370,210.00$ 915,200.00$ R37911 TWC PROPERTIES LLC 0.90 88,130.00$ 379,260.00$ 467,390.00$ R10659 UVACEK EDWARD & BEATRICE G 14.27 1,553,790.00$ -$ 1,553,790.00$ R354995 WEINGARTEN INVESTMENTS INC 8.91 3,153,580.00$ -$ 3,153,580.00$ R37922 WELLS FARGO 1.84 1,122,100.00$ 526,690.00$ 1,648,790.00$ R86648 WHATABURGER INC 0.96 542,970.00$ 421,310.00$ 964,280.00$ R81855 WINSLOW JACK E JR & DONNA B 0.52 272,380.00$ 86,190.00$ 358,570.00$ R13921 WINSLOW JACK E JR & DONNA B 2.43 1,270,750.00$ 72,690.00$ 1,343,440.00$ R105421 WOODCREEK PARTNERS LP 4.33 754,220.00$ 6,207,710.00$ 6,961,930.00$ R13809 WU HSIN-I & SANCY 0.46 25,760.00$ 130,580.00$ 156,340.00$ 392.53 64,984,180.00$ 134,421,000.00$ 199,405,180.00$ (=) Appraised Value 52,737,560.00$ (-) Exempt 146,667,620.00$ (=) Taxable Real Property 153 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 28 Estimated Captured Value of Zone in Each Year of Existence “The estimated captured appraised value of the zone during each year of its existence” The captured appraised value of the TIRZ during each year of existence is shown in this table based upon a conservatively projected development schedule. The cumulative estimated captured value over the life of the Zone is $117,000,000. Actual value will depend upon implementation of the Medical District Master Plan, and changes from these projections will affect actual performance of the TIRZ. Estimated TIRZ Number 18 Revenue 100%83.94%Annual New New Non Res &Total New Captured COCS BC Total TIF Residential Multi Family Development Appraised Value Tax Revenue Tax Revenue Revenue Year 1 $0 $1,000,000 $1,000,000 1,000,000$ 4,307$ -$ 4,307$ Year 2 $0 $4,000,000 $4,000,000 5,000,000$ 21,534$ -$ 21,534$ Year 3 $0 $5,000,000 $5,000,000 10,000,000$ 43,069$ -$ 43,069$ Year 4 $0 $5,000,000 $5,000,000 15,000,000$ 64,603$ -$ 64,603$ Year 5 $0 $12,000,000 $12,000,000 27,000,000$ 116,285$ -$ 116,285$ Year 6 $0 $2,000,000 $2,000,000 29,000,000$ 124,899$ 118,062$ 242,961$ Year 7 $0 $8,000,000 $8,000,000 37,000,000$ 159,354$ 150,630$ 309,985$ Year 8 $0 $10,000,000 $10,000,000 47,000,000$ 202,423$ 191,341$ 393,764$ Year 9 $0 $10,000,000 $10,000,000 57,000,000$ 245,492$ 232,052$ 477,544$ Year 10 $0 $16,000,000 $16,000,000 73,000,000$ 314,402$ 297,190$ 611,591$ Year 11 $0 $1,000,000 $1,000,000 74,000,000$ 318,708$ 301,261$ 619,969$ Year 12 $0 $4,000,000 $4,000,000 78,000,000$ 335,936$ 317,545$ 653,481$ Year 13 $0 $4,000,000 $4,000,000 82,000,000$ 353,163$ 267,064$ 620,227$ Year 14 $0 $4,000,000 $4,000,000 86,000,000$ 370,391$ 280,091$ 650,482$ Year 15 $0 $9,000,000 $9,000,000 95,000,000$ 409,153$ 232,052$ 641,205$ Year 16 $0 $1,000,000 $1,000,000 96,000,000$ 413,460$ 234,495$ 647,954$ Year 17 $0 $4,000,000 $4,000,000 100,000,000$ 430,687$ 162,844$ 593,531$ Year 18 $0 $4,000,000 $4,000,000 104,000,000$ 447,914$ 169,357$ 617,272$ Year 19 $0 $4,000,000 $4,000,000 108,000,000$ 465,142$ 87,936$ 553,078$ Year 20 $0 $9,000,000 $9,000,000 117,000,000$ 503,904$ 95,264$ 599,167$ $0 $117,000,000 $117,000,000 5,340,519$ 3,137,182$ 8,482,008$ Brazos County 20 Years O&M Rate Years 1-5 0% Years 6-12 100% Years 13-14 80% Years 15-16 60% Years 17-18 40% Years 19-20 20% 154 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 29 Duration of Zone “The duration of the zone” The duration of the Zone is 20 years. The TIRZ will take effect on the date it is created. January 1, 2012 will be established as the base year and the TIRZ will terminate on December 31, 2032, or the date when all project costs are paid and all debt is retired, or by subsequent city ordinance terminating the Zone. 155 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 30 Appendix 156 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 31 Estimated TIRZ Number 18 Project Costs Estimated TIRZ Number 18 Project Costs Estimated Infrastructure Costs Rock Prairie Road West - Longmire to Normand 2,502,000$ Rock Prairie Road East - SH 6 to Bird Pond 3,302,000 Streets Subtotal 5,804,000$ Other Costs Developer Reimbursement Interest -$ Organizational Costs, Zone Creation and Administration 100,000 Permitting and Related Fees - Subtotal 100,000$ Total Estimated Costs 5,904,000$ 157 Tax Increment Reinvestment Zone Number 18 Preliminary Project Plan and Preliminary Financing Plan 32 Estimated TIRZ Number 18 Revenue Estimated TIRZ Number 18 Revenue100%83.94%AnnualNewNew Non Res &Total NewCapturedCOCSBCTotal TIFResidentialMulti FamilyDevelopmentAppraised ValueTax RevenueTax RevenueRevenueYear 1$0$1,000,000$1,000,0001,000,000$ 4,307$ -$ 4,307$ Year 2$0$4,000,000$4,000,0005,000,000$ 21,534$ -$ 21,534$ Year 3$0$5,000,000$5,000,00010,000,000$ 43,069$ -$ 43,069$ Year 4$0$5,000,000$5,000,00015,000,000$ 64,603$ -$ 64,603$ Year 5$0$12,000,000$12,000,00027,000,000$ 116,285$ -$ 116,285$ Year 6$0$2,000,000$2,000,00029,000,000$ 124,899$ 118,062$ 242,961$ Year 7$0$8,000,000$8,000,00037,000,000$ 159,354$ 150,630$ 309,985$ Year 8$0$10,000,000$10,000,00047,000,000$ 202,423$ 191,341$ 393,764$ Year 9$0$10,000,000$10,000,00057,000,000$ 245,492$ 232,052$ 477,544$ Year 10$0$16,000,000$16,000,00073,000,000$ 314,402$ 297,190$ 611,591$ Year 11$0$1,000,000$1,000,00074,000,000$ 318,708$ 301,261$ 619,969$ Year 12$0$4,000,000$4,000,00078,000,000$ 335,936$ 317,545$ 653,481$ Year 13$0$4,000,000$4,000,00082,000,000$ 353,163$ 267,064$ 620,227$ Year 14$0$4,000,000$4,000,00086,000,000$ 370,391$ 280,091$ 650,482$ Year 15$0$9,000,000$9,000,00095,000,000$ 409,153$ 232,052$ 641,205$ Year 16$0$1,000,000$1,000,00096,000,000$ 413,460$ 234,495$ 647,954$ Year 17$0$4,000,000$4,000,000100,000,000$ 430,687$ 162,844$ 593,531$ Year 18$0$4,000,000$4,000,000104,000,000$ 447,914$ 169,357$ 617,272$ Year 19$0$4,000,000$4,000,000108,000,000$ 465,142$ 87,936$ 553,078$ Year 20$0$9,000,000$9,000,000117,000,000$ 503,904$ 95,264$ 599,167$ $0$117,000,000$117,000,0005,340,519$ 3,137,182$ 8,482,008$ Brazos County 20 Years O&M RateYears 1-5 0%Years 6-12 100%Years 13-14 80%Years 15-16 60%Years 17-18 40%Years 19-20 20%158 Joe Orr, Inc. Surveyors & Engineers 2167 Post Oak Circle College Station, Texas 77845 (979) 693-2777 Tax Increment Reinvestment Zone area A -482.88 acres College Station, Texas December 2012 All that certain tract or parcel ofland lying and being situated in the Crawford Burnett league (abstract no. 7), Robert Stevenson league (abstract no. 54) and Thomas Caruthers league (abstract no. 9) in College Station, Brazos County, Texas, generally being an area centered around the intersection of Rock Prairie Road and State Highway no. 6, and the boundary being more particularly described as follows: Beginning at the intersection of the south right-of-way line of Rock Prairie Road East (60 feet south of surveyed centerline) and the east boundary of Block 7 of the Scott & White Healthcare Subdivision (vol. 10179, pg. 50), being the northeast comer of Lot 1, Block 7 of said subdivision, and from where the City of College Station GPS control monument no. 9 bears S 82° 02' 35" E ­ 7016.5 feet. Thence along the east boundary lines of said Scott & White subdivision as follows: S 2° 42' 34" E 1023.83 feet, S 50° 49' 32" W 930.60 feet, S 47° 37' II" E -128.13 feet and S 41 ° 15' 39" W -1224.44 feet to the northeast right-of-way line of State Highway no. 6; Thence along the said highway northeast right-of-way lines as follows: S 34° 27' 2&' E -55.00 feet, S 27° 43' 31" E 192.30 feet, S 36° 45' 17" E -383.87 feet and S 42 0 27' 25" E -105.18 feet to a southeast line ofthat M.D. Wheeler, Ltd. 10.01 acre Tract One (vol. 3007, pg. 341); Thence along the southeast lines of said M.D. Wheeler Tract One and the southwest lines of71.52 acre Tract Two as follows: N 41 0 43' 32" E -194.25 feet, N 21 0 27' 46" E -145.09 feet, S 46° 46' 09" E 304.24 feet and S 47° 42' 33" E 177.08 feet to the west comer of that IHD Properties, LLC 2.77 acre Tract One (vol. 10144, pg. 203); Thence along the north, east and south lines of said ruD Properties tract as follows: N 72° 19' 02" E -202.14 feet, S 47° 42' 56" E -638.83 feet and S 42° 17' 04" W 175.00 feet to the northeast common comer ofthe Harley Subdivision (vol. 3961, pg. 236) and Cooper's Subdivision (vol. 4708, pg. 230) in a southwest line of said Wheeler Tract Two; Thence S 47° 42' 16" E 1053.70 feet along the northeast line of said Cooper's Subdivision and continuing along the northeast line of the Barker Subdivision (vol. 5101, pg. 182) to its east comer; TIRZA Page 1 of4 159 Thence S 38° 51' 07" W -279.95 feet along the southeast line of said Barker Subdivision to its south comer in the northeast line of State Highway no. 6, also being a west comer of the City of College Station 46.60 acre tract (vol. 3310, pg. 321); Thence crossing said highway and along its southwest right-of-way lines as follows: S 58° 32' 52" W -37150 feet, N 49° 25' 00" W -238.23 feet, N 43° 42' 22" W -201.00 feet, N 49° 25' 00" W -1400.00 feet, N 46° 52' 14" W -413.20 feet, N 38° 34' 52" W ­ 507.10 feet, N 32° 13' 53" W -534.28 feet, N 27° 56' 32" W 20056 feet, N 32° 13' 53" W -400.00 feet, N 35° 05' 29" W -200.28 feet and N 82° 25' 23" W -78.10 feet to the westerly north comer of Lot 1, Block 1 of Graham Comer Plaza (vol. 5878, pg. 129) in the southeast line of Graham Road; Thence N 40° 30' 48" W -71.60 feet across Graham Road to the east comer of the remainder of the Jack E. Winslow, Jr. 3.0 acre tract (vol. 2291, pg 140 and vol. 2835, pg. 180) in the northwest line of Graham Road (vol. 2086, pg. 58); Thence along the northwest right-of-way line of Graham Road as follows: S 41 ° 41' 25" W -433.76 feet, N 32° 18' 49" W -4.79 feet, S 41° 40' 07" W 268.44 feet, S 41° 31' 43" W -131.06 feet to the northeast line of Longmire Drive, S 39° 15' 59" W­ 111.70 feet across Longmire Drive, S 41 ° 33' 01" W -898.96 feet, S 42° 04' 18" W -521.46 feet and S 41 ° 03' 13" W 698.60 feet to the southwest line of the F.M. and Olive Arnold 50 acre tract (vol. 200, pg. 445); Thence N 47° 5W 34" W 1570.55 feet along the said southwest line of the Arnold tract to the south comer ofthe Sancy and Hsin Wu 0.46 acre tract (vol. 2336, pg. 233); Thence N 47° 26' 15" W -219.05 feet along the southwest line of the Wu tract to the north comer of the Carroll Addition (vol 5229, pg. 47); Thence N 47° 33' 07" W -69.71 feet across Arnold Road to the north comer of the 0.156 acre road dedication tract (voL 5027, pg. 162); Thence along the northwest lines of Arnold Road as follows: S 63 ° 10' 11" W -180.26 feet, to the beginning of a tangent curve to the left with a radius of 405.00 feet, along said curve through a central angle of 17° 37' 25" to the end of said curve, and S 55° 19' 37" W 5.32 feet to the east comer of the City of College Station 9.93 acre tract (vol. 448, pg. 230); Thence along the south, west and north boundary of Brian Bachmann Athletic Park (formerly Southwood Athletic Park) and continuing along Rock Prairie Road as follows: S 41 ° 59' 07" W -1027.13 feet along the northwest line of Arnold Road and southeast lines of the said City 9.93 acre tract and the City 15.89 acre tract (vol. 448, pg. 232), N 43° 45' 01" W 1185.92 feet, along the southwest line of said 15.89 acre tract to the southeast right-of­ way line of Rock Prairie Road (80' RO.W. -vol. 779, pg. 571), N 51 ° 57' 01" E -1177.50 feet along said southeast line of Rock Prairie Road to the beginning of a tangent curve to the right with a radius of 1006.62 feet in the southeast boundary of Southwood Terrace Phase 3-C TIRZ A Page 2 of 4 160 (vol. 523, pg. 431), along said curve through a central angle of 8° 11' 51" to the point of tangency, N 60° 08' 52" E -1486.99 feet along the southeast boundary of Southwood Terrace Phase 3-B (vol. 579, pg. 380) and Phase 3-A (vol. 519, pg. 378) to the beginning ofa tangent curve to the right with a radius of 960.00 feet, along said curve through a central angle of 18° 38' 31" to the point of tangency, N 78° 47' 23" E -14.90 feet and N 11° 12' 37" W 79.72 feet across Rock Prairie Road to the southwest comer of the Remington Subdivision (vol. 1239, pg. 219); Thence along the west boundary lines of said Remington Subdivision, the northwest boundary of Tract B, Ponderosa Place Section Two (vol. 2680, pg. 321) and Longmire Place (vol. 3377, pg. 155) and along the southwest boundary of Ponderosa Place (vol. 490, pg. 169) as follows: N 26° 55' 04" W -252.32 feet, N 17° 18' 19" E-259.07 feet, N 42° 34' 17" E 624.79 feet and N 40° 39' 13" W 796.43 feet to the west comer of Lot 4, Block 21 of Ponderosa Place, in the southeast line of Ponderosa Road; Thence N 49° 20' 47" E -1150.00 feet, along the southeast right-of-way line of Ponderosa Road, to the north comer of Lot 1, Block 19 of Ponderosa Place, in the southwest right-of-way of State Highway no. 6; Thence along the said highway southwest right-of-way lines as follows: S 40° 39' 13" E 480.00 feet, S 32° 12' 28" E -185.04 feet, S 41° 13' 02" E 80.23 feet and S 17° 22' 13" E -34.06 feet to the southeast line of Lot 1, Block 20 of Ponderosa Place; Thence N 78° 53' 01" E 493.32 feet, across State Highway no. 6 to the west comer of Lot 2-B, Block One of Cornerstone Commercial Section One (vol. 3922, pg. 282) in the southeast right-of­ way line of Wood creek Drive; Thence along the southeast right-of-way of Wood creek Drive as follows: Along the arc of a curve to the right with a radius of 890.00 feet, through a central angle of 9° 52' 07", the chord of which bears N 52° 46' 54" E -153.10 feet, N 57° 42' 58" E -318.00 feet to the beginning of a tangent curve to the left with a radius of 835.00 feet, along said curve through a central angle of 8° 00' 00" to the north comer of Lot 1 (voL 3283, pg. 201); Thence along the northeast lines of Lot 1 and Lot 2-A of said Cornerstone Commercial Section One as follows: S 40° 17' 03" E -155.81 feet to the east common comer of Lot 1 and Lot 2-A and the beginning of a tangent curve to the right with a radius of 600.00 feet, along said arc through a central angle of 16° 01' 29" to the point of tangency, and S 24° 15' 34" E 280.69 feet to the most easterly comer of said Lot 2-A; Thence along the south boundary lines of Wood creek Section 4 (vol. 1315, pg. 217), Section Six South (vol. 2109, pg. 199) and Section Seven (vol. 2580, pg. 113), defining the north boundary lines of the remainder of the Edward Jr. and Beatrice Uvaceck tract (vol. 274, pg. 383 and vol. 321, pg. 664), as follows: N 24° 13' 07" E -555.17 feet, N 79° 45' 53" E -313.69 feet, S 48° 05' 30" E -216.00 feet, S 44° 28' 03" E -75.26 feet, S 28° 11' 32" E -108.12 feet, S 34° 34' 23" E -162.74 feet, TIRZA Page 3 of4 161 S 39° 46' 00" E -149.62 feet, S 44° 34' 42" E -282.83 feet, N 24° 16' 33" E -134.65 feet and N 68° s2~ 20" E 230.83 feet to the northwest comer of the Riviera Addition (vol. 6607, pg.97); Thence S 15° 28' IS" E -269.56 feet, along the west line of said Riviera Addition, to the north right-of-way line of Rock Prairie Road East (59.0 feet north of surveyed centerline); Thence S 86° 2T 34" E -961.09 feet, along said north right-of-way line, to its intersection with an extension of the east boundary of Block 7 of the Scott & White Healthcare Subdivision; Thence S 2° 42' 34" E -120.04 feet, across Rock Prairie Road, to the Point of Beginning and containing 482.88 acres of land more or less. Bearings are Texas State Plane, NAD-83(CORS) datum, based on City of College Station GPS control points and GPS observations. Volume and page numbers cited refer to the Brazos County public records. No monuments were set for this survey and found monuments are not cited. This document was prepared under 22 TAC §663.21 does not reflect the results of an on the ground survey and is not to be used to conveyor establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. See survey plat prepared with this description, dated December 2012. TIRZA Page 4of4 162 163 26 College Station Medical District Master Plan 3 - Healthcare Trends & Demographics Healthcare Drivers Both in the College Station area and nationwide, healthcare is a large, strong and growing industry—in sharp contrast to most other sectors of the nation’s economy over the past three years. The fundamental drivers of this growth are: • The growing number of Americans who are over 65 years of age. • General population growth. • Affluent demographic groups around the globe that will travel if necessary to seek out the best healthcare and wellness facilities available. • National policy that has expanded the number of citizens covered by insurance. • Strong continued growth potential for the biosciences, pharmaceutical, medical devices, and related industries. • The growing awareness of the need and benefits for health and wellness programs. The Graying of America Throughout their lives—as America’s largest generation—baby boomers (born between 1946 and 1964) have made headlines. This continues today, as economists, demographers and forecasters attempt to discern the impacts that aging baby boomers will have on America in the 21st century. The impact will be broad and will include impacts to the workplace, public policy, retail and other facets of life. Figure 5 shows the dramatically changing shape of America’s population over the past half-century. Between 2010 and 2040, the US Census projects that the number of Americans over the age of 65 will double—from approximately 40 million today, to 80 million in 2040. Beginning in January 2011, and over the next 19 years, at least 10,000 baby boomers per day will turn 65. 164 27College Station Medical District Master Plan Figure 5. America’s Population: From Pyramid to Rectangle Source: US Bureau of Census, Leland Consulting Group Figure 6. Nationwide Household Growth, 2010 – 2020 (Millions) Source: Joint Center for Housing Studies at Harvard University, Leland Consulting Group Figure 6 underscores the scale of the growth in older households nationwide, while also illustrating some additional elements of the nation’s changing demographics. This data also portends a growing need for smaller dwelling units with a richer variety. As referenced above, the greatest amount of overall household growth during the coming decade will come from the baby boomer generation. Younger households, with heads-of-households younger than 40 years of age, will also grow—though at a lesser pace. In particular, households aged 25 to 34—a key demographic that drives apartment demand and development—will experience strong growth. The number of middle-age households, however, will decrease, because of the relatively small number of “Generation X” (born between the early to mid 1960s and the early 1980s) households compared to baby boomers. The decrease in this age group—which has the largest percentage of families and children— suggests that the single-family housing market will continue to stagnate for some time. However, there will be a growth in the number of minority-headed middle-age households. Seniors Drive Healthcare Demand America’s aging population will require more medical and healthcare services. Healthcare industry experts estimate that as much as 60 percent of all physician demand is driven by the 65-plus population. (Source: Medical Office Development Continues to Rise, Real Estate Finance, April 2008.) As Figure 7 shows, senior citizens require approximately three times more physicians, in all categories of medicine, compared with younger age groups. The demand for services in turn stimulates strong demand for healthcare and healthcare related real estate including hospitals, clinics, physician offices, outpatient centers, senior housing and related facilities. The specific need for these facilities is outlined in Chapter 4 – Development Program. 165 28 College Station Medical District Master Plan Figure 7. Physicians Required per 100,000 Population by Age Group Source: Department of Health and Human Services, Leland Consulting Group More than Healthcare—Lifestyle As the generation that came of age with rock and roll, increasing mobility and personal freedom, and amidst a seemingly limitless American economic expansion, baby boomers are unlikely to want to register at a retirement community and live out the rest of their days apart from the outside world. They will be seeking more from their communities than simply reliable healthcare. According to a 2007 survey, the following are some of the key features that baby boomers will look for in their future housing choices and communities (Source: “Who are you calling a senior?” Urban Land Magazine, January 2011): • Working will continue to be an important part of the boomer lifestyle. Fifty-five percent of boomers plan to continue to work at least part-time, making urban areas close to job opportunities and transportation more desirable. Urban workforces are better plugged into the new economy, a trend that only stands to strengthen as the U.S. information economy expands. • Arts and culture. Boomers overwhelmingly seek locations that offer travel, arts, hobbies, fitness, entertainment, dining, culture, shopping and gardening—raising the question, what are boomers not interested in? Surprisingly, they agree on their lack of interest in golf, tennis or a move to a warmer climate. • Of the boomers who are anticipating a move, only 20 percent are very interested in golf and/or warm locales, and plan to include those factors as part of their moving decision. • Eighty-six percent of baby boomers want to live in a typical community setting where people of all ages live; diversity of age and experience is critical to boomers. 166 29College Station Medical District Master Plan Information suggests that our definition of “senior housing” will change. Rather than seclusion and exclusivity, many boomers will want activity and connection—with their children, grandchildren, friends and communities. Along with outdoor pursuits, seniors will be looking for arts, culture, food, continuing education and lifelong learning and other pastimes. Further, while high quality healthcare is very important to senior citizens, they are looking for communities in which it is part of an overall puzzle, not the entire picture. Increase in Healthcare-Related Jobs Job growth in the United States has stagnated over the past several years. In the coming decades, job growth is expected to come from several well-defined industry segments, led overwhelmingly by healthcare and professional services. The Bureau of Labor Services (BLS) predicts that the healthcare industry will generate 3.2 million new jobs between 2008 and 2018. Therefore, the opportunity to accelerate the development of a medical district or cluster of institutions is a major economic development opportunity, since this industry sector is expected to be among the fastest growing in the country. Figures 9 and 10 show both the types and locations (by development type) of jobs expected to be created in the healthcare fields. This information is relevant because it is indicative of the types of development likely to take place in College Station, and because it shows the breadth of jobs that could be created within the City and region. The greatest demand, as shown in Figure 9, will be for those trained as nurses, physicians and surgeons, followed by many other professionals including social workers, lab technicians and physician assistants. These job types Figure 8. National Employment Growth by Industry Sector, 2008 – 2018 (thousands of jobs) Source: Bureau of Labor Services, Leland Consulting Group 167 30 College Station Medical District Master Plan in general offer relatively high wages and security compared with national averages. College Station’s educational institutions, led by Texas A&M’s Health Sciences Center, have already begun preparing to meet the need for a highly-educated healthcare workforce. Figure 10 shows that the locations where healthcare professionals will work is diverse and extends well beyond the traditional hospital, to physicians offices, senior housing communities, patient’s homes and clinics. Thus, a diverse range of real estate types will be needed within the medical district. Real Estate Development Outlook Real estate development was a major source of the national recession, and an industry that continues to suffer in its aftermath. Nationwide, most types of real estate development continue to be out-of-favor with investors due to dramatic overbuilding in the early part of the last decade, increased unemployment and stagnating wages, more caution on the part of consumers, increased scrutiny by lending managers, ratings agencies, and regulators and other related factors. These conditions are reflected in Figure 11, which shows some of the key findings from the Urban Land Institute’s (ULI) 2011 Emerging Trends in Real Estate, a leading annual real estate industry publication. While industry leaders are extremely pessimistic about most types of development—most development types are seen as nearly “abysmal”—development within several land uses is “fair”, that is, financeable and profitable under the right conditions. These include apartments, medical offices, senior housing and other types of affordable and infill housing—all Figure 9. Net New Healthcare Jobs by Title, 2008 – 2018 Source: BLS Guide to Healthcare Industry, 2010-11 Edition, Leland Consulting Group Figure 10. Net New Employment by Facility Type, 2008-2018 Source: BLS Guide to Healthcare Industry, 2010-11 Edition, Leland Consulting Group 168 31College Station Medical District Master Plan Figure 11. 2011 Real Estate Development Prospects Source: Urban Land Institute, Leland Consulting Group development types with strong long-term demand drivers that did not suffer from the same scale of dramatic overbuilding as single- family housing and other types did in the early 2000s. While these trends are important for the medical district, there are a number of qualifications to this information that should be recognized. The Emerging Trends analysis is nationwide and intended for the short term (multi-year outlook focusing on 2011). In fact, we know that every real estate market is highly localized, with its own demand drivers (economy, demographics, etc.) and players (existing development, developers, property owners, etc.). Many Texas cities and metropolitan areas have continued to create jobs and enjoy strong real estate markets through much of the last several years, thus avoiding the worst of the national real estate downturn. In addition, the medical district is intended to be a long-term vision with a long-term build out, and thus, the trends in effect in 2020 and beyond will be nearly as important as those for next year. However, with these caveats in mind, the land uses anticipated to be strong opportunities in 2011 should continue to maintain their top positions for much of the coming decade. Nationally, the medical office sector has outperformed most other commercial property types through the recession. Texas was expected to add 1.7 million square feet of medical office space in 2010, an increase of 2.5 percent. Asking rents are strong, averaging nearly $23 per square foot. (Source: Medical Office Research Report, Marcus & Millichap, Q3 and 4 2010) The City and its medical district development partners should take these uses into account when planning and implementing the master plan. Previously Uninsured Entering the Healthcare System In addition to the growth of the over-65 population and other demand drivers discussed above, the expansion of healthcare to a broader segment of the population, particularly through greater access to insurance, is expected to increase the need for hospitals and other medical real estate. 169 32 College Station Medical District Master Plan Healthcare and health insurance has, of course, been much in the news during the past two years. As of 2010, approximately 46 million Americans were estimated to be uninsured. The federal healthcare reform bill, signed into law in March 2010, is expected to lead to coverage for approximately 32 million, and thus an increase of approximately 64 million square feet of healthcare related real estate nationwide. (Source: “Can Healthcare Rescue Real Estate?” Meyer, Kenneth and Rob Grossman, Deloitte Consulting) Figure 12 shows the demographic groups that are currently least likely to carry insurance today, but would be covered in the future. Some of these groups— particularly Hispanics, households aged 18 – 29, and southern and western households—are also groups expected to grow quickly in the coming decades, and thus, their impact on healthcare demand will be amplified. Expanded coverage is generally expected to be neutral to positive for the financial health of medical service providers (although its impact on the health insurance industry may be negative). More patients will be able to pay fair-market rates for care through insurance, but insurers may be forced to reduce their co-payments across the board. However, fierce disagreements about the proper direction of federal and state policy continue. While it is likely that at least some of the insurance expansion put in place in 2010 will continue, it is also possible that the insurance expansions could be diminished or eliminated. This report assumes that at least some of the insurance expansion will stay in place, and that this in turn, will contribute to demand for healthcare related real estate. Additional Trends Affecting Healthcare Real Estate The following are additional trends affecting the development and operation of healthcare-related real estate within the state and across the nation. • Healthcare reform. New legislation will change healthcare delivery over the next several years, as uninsured people are brought into the system. Insurance companies will be challenged because those who can afford healthcare already have it. Those who have to be added typically cannot pay for services and will have to be supplemented in some way, which will probably mean lower reimbursements for providers. Therefore insurance companies and medical providers will have to look for ways to streamline costs. Many of the uninsured are young and healthy, 20 to 30 year olds. Others are extreme poverty situations, Figure 12. Demographic Characteristics of the Uninsured, 2009 Source: Gallup Well-Being Index, June 2009, Leland Consulting Group 170 33College Station Medical District Master Plan and will likely need assistance to pay for healthcare. Dental care will be especially critical to this group. • Insurance. The first step in the process will be primarily focused on insurance, getting the uninsured into an insurance group. • Delivery: The second step in the process will be delivery focused, streamlining costs in the system and providing care for an increased number of people. • Access and Affordability. Many HMOs will do well in the future because they control costs with an integrated approach. They are financially stable and will continue to grow. • Consolidation. Physicians will have to be part of a group, as most will not be able to stand alone because the costs of running a private office continues to increase significantly. • Streamline Costs. There will be even greater emphasis placed on reducing redundancies and streamlining the “flow” of patients (as measured by through-put metrics). For example, electronic healthcare records give access to a patient’s medical history, lab tests, etc., to all providers and specialists, thereby reducing repetitive tests and consolidating office visits. • Reimbursement. New members will be paying less than others will. Payments through Medicare/Medicaid barely cover the costs of administration; however, providers will at least get some (albeit low) reimbursement for patients that previously had to be covered for free in the ER. • Robotic surgery. Larger operating rooms will be required. • Insurers. Regional providers will be supporting their communities and will step up to provide care to the currently uninsured. National for- profit providers are looking for self-funded members where they can get higher profit margins. • Collaborative effort. Healthcare will be less of a hierarchical system. There will be more groups that deliver care through nurse practitioners and other support staff when possible, and fewer stand-alone physicians, mostly out of a necessity to reduce costs. • In-home monitoring. The advent and improvement of electrical monitoring technology allows more patients to be at home, and yet have distant professionals monitoring vital signs and looking for signs that they may need critical attention. • Military technology. The military has long been a leader in technological advances. Equipment and technology developed for use by the military will change the medical community. • Electronic ICU (EICU) critical care monitor. One facility can monitor multiple hospitals, similar to flight control at an airport monitoring multiple airlines. This could help lower costs for regional facilities in areas with several critical care or ICU units. • Streamline real estate holdings. Healthcare institutions will look for ways to cut costs including real estate holdings. Some hospital groups are currently looking to downsize administrative space. They are experimenting with alternate workspaces, such as shared stations, and allowing employees to work at home or otherwise off site. • Dental and Medical Synergy. Providers are recognizing the importance of dental health in a person’s overall health. More dental care providers will be needed in the future. • Information Systems. Information systems and electronic records streamline costs and improve care by being accessible to multiple providers. • eVisits. Physicians have started responding to patients through email, and can sometimes avoid an office visit. Industry experts expect to see a reduction in office visits, but this has not been the case yet. • Rural innovations. Providers are looking for ways to provide cost effective care to rural areas, where it has traditionally been difficult to attract physicians and other providers. At least one hospital group is testing a small 2,500 square foot clinic for rural areas. Another experiment is a mobile mammogram van, which, while it requires a low level of capital investment, is still costly to operate and requires “partner sites” for water, power and other services. Medical Districts and Urban Development Major healthcare institutions and related uses have clustered together in medical districts across the country. These districts are a result of deliberate and assertive action by healthcare providers, the public sector, and other stakeholders, who seek to provide their patients with more complete offerings for care; proximity to other experts, suppliers and complementary uses; and increased economic outcomes such as growth in jobs and tax bases. The following case studies summarize some of the key characteristics of medical corridors and districts nationwide. Research of medical districts across the nation indicates successful medical districts tend to be 171 34 College Station Medical District Master Plan located in larger communities with populations in excess of 500,000. However, one well established and notable example is Winston-Salem, NC. With a population of nearly 230,000, Winston-Salem is comparable to the combined population of College Station and Bryan. Tyler, Texas is also in the process of evaluating and planning a medical corridor with a population similar to College Station and Bryan, but it is too early to identify useful lessons. Communities of less than 50,000 are known to have established medical districts, with East St. Louis, IL being a good example. Attempts to identify a distinct set of success factors for medical districts is problematic given the variation in the size of host cities and the history of medical district development. Common Traits of Highly Successful Downtowns and Vibrant Urban Districts (Source: “Common Traits of Highly Successful Downtowns,” Gary Ferguson, Ithaca Downtown Partnership, 2005) 1. No single organizational model exists. While College Station can and should learn from other medical district models in similar locations, the approach adopted in College Station will be distinctive to College Station. 2. Multiple traffic generators are within short walking distances. The medical district cannot be a single-purpose district. Visitors to and residents of the district will demand a variety of accessible activities including health, wellness, and recreational services, as well as dining, retail and jobs. 3. Great urban districts are beloved by their citizenry. Pride in the medical district must be promoted and instilled internally to city residents. The district could be useful in establishing a distinct gathering place for meetings focused on medical issues and for patients and their friends and families in the course of access to comprehensive health care solutions. 4. Great downtowns and urban districts are able to overcome obstacles. This requires partnerships, shared resources, vision and patience. The premise of the medical district itself is the product of a shared vision and shared resources. This lesson needs to be extended throughout the district and the community. In the context of current and predicted economic reality, there is no viable alternative to a robust public-private partnership to get things done. 5. Great districts are walkable and have pedestrian scale. There must be interesting features that capture the attention of pedestrians while assuring personal safety. The variety of patrons and residents of medical district institutions will help to attract a variety of businesses, public art, aesthetically pleasing streetscapes and visual diversity. 6. Great urban districts have a commitment to mixed-use development. Developers and investors are urged to build for and attract a range of occupants, business types and institutional services. Virtually by definition, the medical district will itself be a form of a mixed-use development, so this theme can be applied more broadly, too. 7. There is broad public/private investment in the future of downtowns and urban districts. Partnerships are essential for the private, public and non-profit realms. The medical district can and must demonstrate that public/private investments can achieve significant results, and should include a variety of private interests (developers, etc.), public leadership and non- profits such as a district steering committee or business association. 8. Entertainment is the driving market segment. Revitalized downtowns increasingly serve as places for dining and recreation rather than simply centers for retail merchandise. The medical district can be a leader in attracting and sponsoring public events (fairs, concerts, art walks, “healthy foods” farmers market, etc.) that instill interest in the medical district, eventually leading to a wide range of investments. 9. There is a prevalence of strong, adjacent residential neighborhoods that are within walking distance of an urban district. Respecting the existing area neighborhoods while establishing new residential neighborhoods is essential for the success of the medical district. Access to and from housing in the neighborhoods must be redesigned to encourage pedestrians into the medical district. 10. Housing is either prevalent or underway. The medical district must add a substantial amount of housing in addition to improvements in transportation and pedestrian routes. Such housing should appeal to the workforce in the medical district as well as seniors, include affordable options, and be walkable neighborhoods. 11. Colleges and Universities help, but are not the sole answer. Many of the medical districts studied are university towns, but the research found that universities are not automatic keys 172 35College Station Medical District Master Plan to district vitality. However, research indicates that a strategic partnership with institutions of higher education is vital to medical districts, is an attraction for regional visitors and a source of well-trained labor for the entire area. Certainly this is true for all major medical providers in the College Station-Bryan market today. Texas A&M University is foundational to the development of a regionally competitive medical district. Additionally, the excellence of the College Station Independent School District is a major asset in the successful establishment of a medical district and is a key element in attracting medical professionals and organizations into the medical district. With these metrics in mind, a strategic model for establishment of a medical district in College Station and the broader community that leverages the characteristics of its existing strengths can be designed. Such a model, however, must be unique to College Station and must be supported by those who use or would use the medical district more actively. National Medical Corridors and Districts: Key Characteristics and Tenants Successful medical corridors and districts have been established in a wide spectrum of urban areas. Table 1 provides a sample of some of these districts. Table 1. Successful Medical Districts, University Affiliation and Population Size Source: Leland Consulting Group, US Census Community University Affiliation Population, 2010 Dallas, TX University of Texas at Dallas 6,500,000 Houston, TX At least 15 Health related University Organizations 6,100,000 Philadelphia, PA University of Pennsylvania 6,100,000 Miami, FL University of Miami 5,547,000 Boston, MA Harvard Medical School 4,500,000 San Antonio, TX University of Texas at San Antonio 2,140,000 Oklahoma City, OK University of Oklahoma 1,253,000 New Orleans, LA Tulane University 1,236,000 Memphis, TN University of Tennessee 647,000 Aurora, CO University of Colorado Denver Anschutz Campus, VA 325,000 Birmingham, AL Univerity of Alabama 212,000 Tyler, TX University of Texas at Tyler, Texas College 210,000 Englewood, CO University of Colorado Denver 32,532 East St. Louis, IL University of Illinois 27,000 Bryn Mawr, PA Bryn Mawr College (Pre-Med)21,000 Approaches to urban revitalization success must be multifaceted, multidisciplinary, and holistic. Keep the puzzle pieces together! Source: Leland Consulting Group 173 36 College Station Medical District Master Plan Stemmons Corridor Southwest Medical District Study Area Dallas, Texas • Plan adopted 2010 (to be implemented through 2013). • TIF district. • 100,000 employees. • 5,000 businesses. • Biotechnology and medical services – key targeted industries. • Key healthcare providers and tenants: • UT Southwestern Medical Center. • Parkland Health & Hospital System. • Children’s Medical Center. • Texas Woman’s University School of Nursing. • 40 Hotels (Stemmons Corridor). • Planned expansion of clinical care and new research buildings. • Planned 350,000 SF biotech and life science research park. Source: City of Dallas Texas Research Park - San Antonio, Texas • UT - Institute for Biotechnology. • UT - Institute for Longevity and Aging. • Biomanufacturing firms. • TEKSA Innovations Corporation. Source: Urban Land Institute Special Report: Office/ Medical Development, 2008 Texas Medical Center Houston, Texas • World’s largest medical center. • 93,500 employees. • 1000 acres. • 14 hospitals and two specialized patient facilities. • 160,000 daily visitors. • 69,000 students, 5,000 of whom are international students. • 5.6 million annual patient visits. • 50-year Master Plan completed in 2006. • $7.1 billion in building and infrastructure investments approved between 2010-2014. • Annual Economic Impact – $14 billion. • Annual Research Expenditures $1.2 billion. Source: Texas Medical District 174 37College Station Medical District Master Plan 10th Street Medical Business District Oklahoma City, Oklahoma • Recommended Development Program, 2006 to 2020: • Office: 450,000 to 800,000 SF. • Retail: 130,000 to 175,000 SF, groceries, restaurants, bars, drug stores, household goods, gas stations, apparel, day care, bars. • Mid-size hotel: 200-250 rooms. • Residential: 1,500 to 2,000 units (average of 1,200 SF per unit). Source: 10th Street Medical Business District Development Strategy, 2006 Five Points Medical District Birmingham, Alabama Key healthcare providers: • University of Alabama Hospital – 908 beds. • HealthSouth Medical Center – 73 beds. • HealthSouth Lakeshore – 100 beds. • Callahan Eye Foundation Hospital – 20 beds. • Children’s Hospital Of Alabama – 310 beds. • Cooper Green Mercy Hosp – 141 beds. • Veterans Affairs Medical Center – 122 beds. • St. Vincent’s Hospital – 372 beds. • Brookwood Medical Center – 602 beds. • Princeton Baptist Medical Center – 368. • Birmingham Baptist Medical Center – 375 beds. • Select Specialty Hospital – 38 beds. • Hill Crest Behavioral – 80 beds. Source: health.usnews.com Sugarland, Texas Key healthcare providers Key healthcare providers: • Memorial Herman Sugar Land Hospital – 77 beds. • Triumph Hospital Southwest – 170 beds. • Sugar Land Surgical Hospital – 6 beds. • Methodist Sugar Land Hospital – 127 beds. Source: health.usnews.com 175 38 College Station Medical District Master Plan Figure 13. College Station and the Golden Triangle Source: ESRI, Leland Consulting Group 52,456 67,890 81,848 92,553 103,257 113,961 184,885 195,410 208,258 221,258 233,546 0 50,000 100,000 150,000 200,000 250,000 1990 2000 2005 2010 2015 2020PopulationPopulation Projections City of College Station College Station-Bryan MSA Figure 14. Population Forecasts for College Station and Metropolitian Area Source: City of College Station (linear growth projection), Texas State Research Center, Leland Consulting Group College Station: Local Demographics and Healthcare Context The population and demographic trends at work in the City of College Station and its surrounding areas reflect the conditions under which a concentrated medical district would be expected to thrive. College Station is part of the College Station-Bryan Metropolitan Statistical Area (MSA, a US Census designation), and at a larger geographic scale, Texas’ “golden triangle,” the super-region framed by three large metropolitan areas: Dallas-Fort Worth, Houston, and San Antonio. The Golden Triangle contains most of the economic engines that are powering the state’s economy and population growth. Because of its location within the triangle and its own unique attributes, College Station is also experiencing rapid growth. As Figure 15 shows, the College Station MSA grew nearly 24 percent between 2000 and 2010, the sixth fastest rate in a fast-growing state. The City itself has grown dramatically, from a population of just over 52,000 in 1990, to an estimated 113,000 by the year 2020. All five of the major metropolitan areas in the Golden Triangle grew faster than the state average in the last decade. This population growth will surely drive demand for medical and healthcare services. The market area for the medical district, however, extends beyond the City’s boundaries and even the officially designated metropolitan area. A market area is the area from which most patients and customers will come from and within which most of the medical district’s competition will be found. The estimated market area for the medical district is approximately a 50-mile radius from the City (also shown in Figure 13). Those who live fewer than 50 miles from College Station will tend to come here for medical services, assuming that the medical district is competitive in terms of quality of care; those who live further away will tend to go to the city center that they are closest to. Obviously a number of intangible factors— quality of care, availability of specialists, insurance coverage, patients’ familiarity with providers—have a large impact on people’s choice of providers, so this market area is an approximate rather than exact area. 176 39College Station Medical District Master Plan 23.7% 20.6% 0%5%10%15%20% 25%30%35% 40% Austin-Round Rock-San Marcos McAllen-Edinburg-Mission Laredo Houston-Sugar Land-Baytown San Antonio-New Braunfels College Station-Bryan Dallas-Fort Worth-Arlington Killeen-Temple-Fort Hood Brownsville-Harlingen State of Texas Tyler Midland El Paso Lubbock Odessa Longview Amarillo Waco Sherman-Denison Corpus Christi San Angelo Texarkana Victoria Abilene Beaumont-Port Arthur Wichita Falls Growth Rate 2000-2010 Figure 15. Growth Rate of Texas Metropolitan Areas, 2000 - 2010 Source: Texas State Data Center, Leland Consulting Group Senior Population and “Old Aggies” As discussed above, the other primary driver of healthcare demand beyond raw population growth is the rate of growth amongst the senior population. Here, as well, demographic trends point towards increasing demand for medical services. Table 2 shows that, while there are 4,000 residents of the City of College Station who were 65 or older in 2010, 62,000 residents (or 12 percent) of the 50-mile market area are seniors. This is a far larger group, in terms of share and total numbers, than the City’s population alone, and indicates a large population of aging seniors. This group is also growing, and will represent 28 percent (nearly 12,000 new seniors) of the total population growth in the market area in the next five years. The consultant team’s research and interviews support the story told by the Census data. Those interviwed consistently stated that “lots of ‘Old Ags’ are moving back to town” to reconnect with their old friends and community. Old Ags are certainly potential patrons for the medical services in the medical district, as well as the residential and retail components. A story from 2007 in The Eagle stated that, “Many senior citizens consider Brazos County a retirement haven because of Texas A&M, the region’s medical facilities and its friendliness. And Texas overall—partly because of inexpensive housing relative to many other states and partly because it has no state income tax—is popular with retirees, ranking No.2 among the 50 states as a retirement destination. The Kovars, both 63, had a long history with Texas and Brazos County. They met at A&M, where Gary Kovar was a guard on the football team. They married while still in school, and when he retired after 35 years with Amoco Chemical Co., they moved back to Aggieland.” Retirees like Bryan-College Station due to A&M, healthcare, social life.” The Eagle, December 16, 2007. 177 40 College Station Medical District Master Plan Another important demographic feature of the College Station area is the tremendous number of young, college age residents. As Table 2 shows, approximately 48 percent of the City’s population is between the ages of 0 and 24, while this percentage is only 40 percent of the 50-mile market area. The percentage of college age residents in College Station is said to be among the highest in the nation, and is certainly one of the highest in Texas. Historically, this high percentage of younger residents has been one of the reasons that the number of hospitals and healthcare-related uses has been lower than average on a per-capita basis—younger people need less care than older people. However, the percentage of the population that is over 65 is expected to grow over time, reaching 13 percent in the City by 2030, as opposed to the eight percent of the population that was over 65 in 2010. The 50 mile market area is expected to have even more seniors, reaching 17 percent by 2030. As is happening nationally, this regional shift to an older population will create more demand for healthcare. Housing Demand Based on existing and projected demographic trends, there is expected to be demand for approximately 10,100 new housing units of all types within the College Station-Bryan MSA. This amount of demand will help to gauge the potential demand for housing in the medical district, outlined in the Development Program. This is based on population growth of over 25,000 in the MSA, and the City’s expected average housing size of 2.5. This is a rough projection of demand, since housing can be provided in many forms, ranging from student housing, to single-family housing to a variety of senior housing. These housing types are explored in greater depth in Chapter 4 – Development Program. As shown in Figure 16, College Station grew at a faster rate than Bryan over the past decade and is expected to continue this trend. Therefore, it is reasonable to assume that College Station will capture a greater share of the projected housing demand for the College-Station-Bryan MSA than will the City of Bryan. College Station Healthcare Environment College Station and Bryan already serve as the focal point for healthcare services within the market area. There are two large-scale, established general medical Table 2. Population of College Station and 50-Mile Market Area by Age Group Source: US Census, ESRI, Leland Consulting Group 0 20000 40000 60000 80000 100000 Bryan College Station Population Growth of College Station and Bryan 2000 2010 38% growth rate 16% growth rate Figure 16. Growth Rate and Population of College Station and Bryan 2000-2010 - Source: Census Bureau, Leland Consulting Group 178 41College Station Medical District Master Plan hospitals, College Station Medical Center (The Med) and St. Joseph Regional Health Center (Bryan). The new Scott & White Hospital is currently under construction at the intersection of SH 6 and Rock Prairie Road in College Station. In addition, two new healthcare-related institutions are expected to grow rapidly in the College Station-Bryan area: Texas A&M University’s Health Science Center (HSC) and Research Park. Supplementing these major facilities and institutions are an array of physician’s offices, pharmacies and small local clinics that serve nearby neighborhoods. A medical district has already begun to take shape in the vicinity of SH 6 and Rock Prairie Road. This has long been the site of The Med (approximately 150 beds), which will be joined by the new Scott & White Hospital (projected capacity of 143 beds upon completion). The Med, with 217 active physicians, was founded in 1931 as an acute care hospital and moved from Bryan to College Station in 1997. Through construction of additional floors on the existing building, The Med could accommodate as many as 250 total beds. The two hospitals form the nucleus of a medical cluster, or medical district, and are complemented by a range of other “supporting uses” such as medical office buildings, pharmacies and physician’s offices. In their own way, the existing retail, housing and parks are also supporting uses. St. Joseph Regional Health Center’s main campus in Bryan has 310 beds. Their outpatient facility in College Station is located on 27 acres at William D. Fitch Parkway and SH 6. The St. Joseph outpatient facility is outside the study area, however, St. Joseph is an important institution and part of the College Station medical community. In 2010, approximately, 24,000 College Station residents chose St. Joseph for their outpatient care while 2,951 residents used St. Joseph for inpatient care. The Physicians Centre Hospital is also located in Bryan, but has only 16 beds and is not considered a full service hospital. The medical facilities that are currently on the ground or under construction show that the private market is already confident that a medical district is feasible. Thus, the questions for the future really revolve around not if the medical district will happen, but how and at what scale. In other words, what are the scales of medical and related non-medical uses, the time frame for development, qualities of the physical environment and how can new facilities be introduced without creating excessive competition for existing providers? In planning for future medical facility expansions and additions, the College Station medical community and the City should carefully review the area’s competitive position vis-à-vis other areas— particularly larger metro areas such as Houston and Austin. The City’s healthcare institutions can and should be able to offer general hospital/medical and acute care facilities that are every bit as good as those in larger metro areas. However, in some specialty care areas—for example, oncology, cardiology and gastroenterology—local institutions will have trouble competing directly and should offer these services through strategic relationships with larger, regional specialty healthcare providers. This dynamic is explained in greater detail in Chapter 4 -Development Program. 179 42 College Station Medical District Master Plan 4 - Development Program A development program is a narrative description of how a property or area should be developed. The program serves as a guide to the physical planners (land planners, landscape architects, architects and engineers) who are responsible for translating the narrative program into a physical land use, transportation and utility plan. The development program describes an overall identity for the project including theme, image and attributes to be merchandised; the overall objective is to capture target markets, maintain economically viable conditions, and create a positive, long-term identity for the project. Product and amenity opportunities are based on the research and analysis of markets for the project—all of which should be simultaneously pursued for the purpose of accelerating project sales and mitigating absorption risk. Programming includes identifying and formulating alternative concepts for the master plan, including: • Development theme and character. • Timing and phasing. This development program is intended for an approximately 10- to 20-year period. However, some uses will develop before others. • Land uses by type, including a wide range of medical and non- medical components. • Land use mix. • Number, type and land (acreage) needs of the various land uses. • Likely amounts of medical and commercial uses (measured in square feet) and housing (measured in dwelling units). • Recommended amenities. Forecasting in the Fog: The Past and the “New Normal” Making accurate long-term development projections has never been easy. But it is arguably more difficult now than ever before, given the dramatic changes to the nation’s economy and real estate markets that have taken place over the past four years, and the ripple effect this has had on consumer preferences and demand for housing, retail space and other components of the built landscape. 180 43College Station Medical District Master Plan Figure 17. Medical District with Land Use Concentrations Source: Leland Consulting Group, SRA, Townscape Figure 18. Forecasting in the Fog Source: Leland Consulting Group Figure 18 illustrates the difficulty of “forecasting in the fog:” pre-crash data shows a red-hot market in which all real estate products—ranging from single-family homes to commercial real estate— were funded and leased quickly, while post-crash data shows just the opposite. Neither can be relied upon to accurately predict long-term trends, and thus, determining the precise pace or timing of redevelopment in College Station and most other markets is very difficult. The future market realities are almost certainly somewhere between the 2007 peak and the current trough. This principle is likely to be true with respect to measurements such as annual housing starts, commercial real estate absorption, rent and lease rates and other metrics throughout the College Station market area. However, the downturn and eventual upturn— expected in 2011, 2012 or potentially later—will be “lumpy”. Traditional lending institutions are hesitant to make loans to developers, and when they do, the parameters of the loan are often prohibitive. Many households have seen serious wealth depletion, as much of the household worth depends on the value of single-family homes, access to home equity loans, retirement accounts and other funds related to the value of financial markets. No one knows when these forces will return to a state of normalcy and exactly what the “new normal” will be. Some markets—defined geographically or by real estate product type—will fare much better than others. For example, the apartment market is in most cases seen as a more desirable area for investment at the moment than single-family homes—which are in most areas overbuilt. Similarly, in retail, some stores will fare better than others or even be more profitable than before. Sales among fast casual restaurants are up. Movie theaters are generally doing well as consumers redefine leisure as dinner and a movie rather than a week long vacation abroad. In summary, College Station should take a long view of real estate redevelopment, hope for the best but also plan to be patient with the still-struggling economy. Successful Programs are Market-Driven The master plan, which can expect successful implementation, must address, to the extent possible, the goals of the City. The additional and equally rigorous layer of considerations that impact the program consists of: 181 44 College Station Medical District Master Plan • Market willingness to seek out medical services, housing, shopping or leisure activities, or other products and experiences in the physical environment to be developed. • Market capacity to pay either through equity, debt service, rents, home ownership or commercial rents. • Lending and loan underwriting policy and criteria. • Achieving reasonable levels of profitability commensurate with risk to attract private development capital to the study area. • Establishing an arrangement of land uses which can be successfully introduced in the marketplace with sufficient velocity (rate of sales) to generate revenues adequate to cover or partially cover the cost of infrastructure both on-site and off-site. Hence, all development strategies must thoughtfully consider the needs of the potential employers, residents, and shoppers who will come to the district. These considerations include price, size, quality levels, image, quality of life and other factors. Development Identity and Character Preparing a development program for the medical district begins with establishing a statement of the recommended overall identity and character for the project. This statement of the project should be adopted by the medical district leadership and organization. It is analogous to the mission statement in a business plan. It is the guiding statement against which later program details can be “tested” for compliance in support of the overall theme. The recommended program is for a medical district and mixed-use community, as illustrated in the following graphic. Exceptional Medical Care This is the key differentiating feature of the district and the set of uses that will drive its success. Exceptional medical care currently brings substantial numbers of patients and employees to the district every year, and will continue to do so in greater numbers in the future. These visitors then make up the market for the other uses and activities in the medical district, including the “village center” retail, office space, housing and parks. It is absolutely critical to the long-term success of the district that residents of the College Station market area believe in the quality of care and receive the best care possible. The land use components of medical care include hospitals, specialty and subspecialty clinics (such as children’s medicine, oncology, mental health, etc.), medical office buildings, pharmacies and medical suppliers, research and development, and education and university related uses. Not all of these uses must be on site at all times. For example, The Med currently has relationships with certain specialty doctors who are only in College Station on a part- time basis, since the market is not big enough to sustain those who focus on specific and relatively rare procedures. Thus, some services can be offered through outsourcing or even off-site relationships. A Special Place and Destination The Texas A&M campus is one example of a special place: A place that people return to time and again to enjoy experiences with friends and family, that evokes memories, emotion and attachment. On the Texas A&M campus, experiences include sporting events, reunions, military services, etc. The medical district will of course have a different look, feel, and identity than the A&M campus, but it should establish a sense of place and, in doing so, create a means by which it can differentiate itself from its competition. This will help it to attract patients, doctors and residents because of a natural desire to spend time in high-quality environments. Research completed by Texas A&M and the Center for Health Design shows that quality of place matters. According to one in a series of articles and presentations authored by professor Leonard L. Berry of Texas A&M and his colleagues: “The buildings in which customers receive services are inherently part of the service experience…The evidence indicates that the one-time incremental costs of designing and building optimal facilities can be quickly repaid through operational savings and increased revenue and result in substantial, measureable, and sustainable financial benefits.” (“The Business Center Case for Better Buildings,” Leonard L. Berry et. al., Healthcare Financial Management, November 2004.) A pathway on the A&M campus. 182 45College Station Medical District Master Plan Figure 19. Medical and Supporting Uses Source: Leland Consulting Group This analysis is consistent with real estate research completed on the relationship between the quality of the built environment and the price that customers or residents will pay to be there. (Source: “The Business Case for Better Buildings,” Leonard L. Berry et. al., Healthcare Financial Management, November 2004. See Valuing the New Urbanism: The Impact of the New Urbanism on Prices of Single-Family Homes, Eppli, Mark J. et al, Urban Land Institute, 1999, and Back to the Future: The Need for Patient Equity in Real Estate Development Finance, Brookings Institution, 2007. The capital costs of high-quality development are also usually higher, but as these analyses show, this is offset by higher revenues when implemented properly) “Place making” can be achieved through a “village center” or active central place for commerce and social functions, design of signage, gateways and entrances, streets and sidewalks, street lighting, common architectural themes, consistent imagery, graphic design and other features. Holistic Wellness The medical district has the opportunity to incorporate aspects of health and healthcare that extend beyond the walls of its hospitals and clinics— through health and fitness clubs, walking and biking paths, restaurants that emphasize healthy eating, ball fields, yoga studios, plazas, open spaces and many other features. An example is The Med’s current partnership with Aerofit Health and Fitness that will result in a new fitness center just south of Rock Prairie Road. The American public is, today, broadly interested in a definition of health and well-being that is much broader than medicine alone. By incorporating and integrating health and wellness broadly into the medical district, and by demonstrating this approach through the area’s physical design, the City and its partners can enhance the district’s brand, improve people’s connection to the place, and increase revenues and economic viability. Great Neighborhoods: Housing Options for Seniors, Medical Professionals and Families Two key groups—senior citizens and medical professionals—will have a distinct interest in living close to the medical district. Seniors have a demonstrated propensity for living in close proximity to quality medical care, and people tend to seek housing that is within easy access to their jobs. This suggests strong demand within the medical district for both senior housing—which includes a “continuum of care” that ranges from independent living, to assisted living, to skilled nursing facilities—and a wide range of housing for medical professionals. The types of housing sought by medical professionals will also be very broad, and may range from large-lot, single-family homes, to urban-style condominiums within walking distance of the hospitals. Making these housing options available will enhance the value proposition of the medical district and its potential for long-term success. The medical facilities will benefit from a consistent base of patients, and find it easier to attract the best doctors, nurses and technicians if great neighborhoods are located nearby. Finally, this population will also help the village center retail component to thrive. Medical and Supporting Uses As shown in Figure 19, the medical district can be generally divided into major use areas: an existing and expanded medical core and a large area of supporting uses. However, both areas—core and periphery—will include a mix of medical and non- medical uses. The types and locations of these uses are summarized in Figure 19. Land Available for Development The study area for the master plan is several hundred acres in size. This total area includes some areas that will remain as-is for many decades, areas that are vacant and are expected to develop and some smaller areas that are already developed but are expected to redevelop within this development program’s time frame. 183 46 College Station Medical District Master Plan Table 3. Gross and Net Developable Areas (based on intial study area) Source: Leland Consulting Group As Table 3 shows, there are approximately 534 net developable acres within the intial study area that can be reasonably expected to develop within the next decade or beyond. Because of the inherent uncertainty associated with large scale, long-term development (see the “Forecasting in the Fog” section) this area could build out in more or less time. A number of considerations and inputs influence this land development analysis: East and West sides. A considerable amount of land is currently vacant—most of it on the east side of SH 6. The east side of SH 6 is best suited for large-scale development, especially for residential communities; however, significant amounts of medical and supporting commercial uses will be clustered along Rock Prairie Road, particularly close to SH 6. The west side of SH 6 will also accommodate a mix of uses; however, these are more likely to be “infill” opportunities. Because of their close proximity to The Med and other established uses, there is a more immediate opportunity to create an urban core or village center for the medical district on the west side. Right of Way. The amount of land needed for right-of- way (ROW), open space and other public areas varies considerably, particularly in contrasting “developable pads” that are already surrounded by urban streets (west side) versus large parcels that still require a network of local streets to be built through them (east side). Thus, on the east side, a greater percentage of the total area must be deducted for ROW and public space. Expansion on The Med and Scott & White properties. The Med and Scott & White hospitals have additional capacity to expand their services on their existing properties—particularly Scott & White, whose primary property is approximately 99 acres. Some new development (to be planned and completed by the hospitals themselves) can take place here. Constrained/Public Uses. Some properties are considered undevelopable (parkland) or are considered undevelopable pending further site- specific analysis (landfills). Redevelopment. Some properties—particularly those that are not highly improved or that experience large increases in visibility or traffic due to the expansion of the medical district —are likely to redevelop. Development Program Table 4 shows the development program for the medical district at full build out, including land uses by area, density and development quantity. The time frame for this build out is generally 10 to 20 years, with the speed of absorption to be determined by a number of factors including the national and local economies, demographic patterns such as the in- migration rate of seniors to College Station, timing of regulatory approvals, lending environment and other conditions. Medical and Healthcare Uses Hospitals As shown in Table 5 and Figure 20 there is a significant undersupply of hospital facilities (measured in hospital beds and physicians) in the College Station MSA in the longer term. While this undersupply is only modest from the perspectives of the short term of the College Station- Bryan MSA alone, it becomes quite significant when viewed from the perspective of the entire 50-mile market area and over the long term. (For the purposes 184 47College Station Medical District Master Plan of this report, the short term is considered to be the next five years, medium term from five to 10 years, and long term from 10 to 20 years.) This is both an important community issue for the area and a significant market opportunity. As of 2013, there will be approximately 636 operating hospital beds within College Station and Bryan, including the Scott & White Hospital now under construction and an expansion underway at the Med. (Source: The number of hospital beds projected is as follows: College Station Medical Center, 167; Scott &White, 143; St. Jospeh, 310; Physician Centre Hospital, 16.) Presently, the existing hospital bed supply is operating at or near full capacity even as some residents look elsewhere for their medical needs, especially in specialty care. As the population continues to grow and age, this supply will become more obviously inadequate just as the supply of quality senior housing is becoming more obviously inadequate. The need for future medical facilities can be assessed in several ways and should take into account several factors. The primary factors influencing a projection of medical services include population size, industry standard measures of services needed, age of the population and presence of other medical demand- drivers, and other market characteristics. Two frequently used metrics for forecasting hospital and medical facility demand are hospital beds and physicians per 10,000 residents of a given area. The current national average is 31 hospital beds and 27 physicians for each 10,000 residents. (Source: Kaiser Family Foundation, www.globalhealthfacts. org/data/topic/map.aspx?ind=78.) On average, the Texas healthcare industry has built somewhat fewer beds per 10,000 residents, but the standard varies significantly between healthcare-intensive cities and rural areas where healthcare services are less accessible. The Houston and San Antonio regions have approximately 45 beds per 10,000 residents and are known nationally and internationally for the reputation of their respective medical districts. Given the evolving characteristics of the College Station MSA and market area, an increase in medical services and concomitant bed-count can be viewed as both reasonable and responsible public policy. Table 4. Medical District Development Program Source: Leland Consulting Group. Some figures may not sum correctly due to rounding (based on intial study area) 185 48 College Station Medical District Master Plan As explained in Chapter 3, age is a major factor that has a very significant impact on the demand for medical care and hospital facilities. Senior citizens over the age of 65 require more than three times the number of physicians as those in the 25 to 44 age group. The percentage of senior citizens within the market area is anticipated to nearly double from 62,000 today to 120,000 in 2030. As the market area’s population ages in keeping with national trends, and there is no rational basis for supposing College Station can or will avoid these trends, demand for hospitals and healthcare services will grow significantly. College Station’s ratio of hospital beds has clearly been low historically and comparatively due to the large percentage of college- age residents. And while this will, of course, continue to be an important part of the region’s demographic character, hospital demand should move back into line with state and national averages in the coming decades. The projections in Table 5 and Figure 20 were developed based on the factors outlined above: the market area’s growing and aging population, and industry standards for required hospital facilities. The need for hospital facilities has been adjusted to account for the ages of populations served. This analysis shows a gap of almost 700 beds in 2015, and more than 1,000 beds by 2030. While significant new facilities will be needed throughout College Station and Bryan, and in the medical district specifically, much of the growth within the medical district should be able to take place on property already controlled by the Med and Scott & White. Table 5. Senior Housing Demand in the Market Area and Medical District Source: Department of Health and Human Services, US Census, Leland Consulting Group Figure 20. Elderly Living in the Community, by Type of Care Source: Long Term Care in America, National Commission for Long Term Care, 1999; Leland Consulting Group 186 49College Station Medical District Master Plan Medical Office Building Medical office buildings (MOBs) typically include routine and preventative care facilities such as physician’s offices, dentists, opthamologists and various other providers. MOBs have many of the same locational requirements as typical office buildings such as easy access for clients; proximity to support services such as food, hotels, labs and medical suppliers; ample parking; and access to intra- and inter-regional transportation connections such as freeways, high capacity transit and airports. However, MOBs usually require a higher degree of technology and services, such as advanced computer systems, greater number of plumbing fixtures,and a higher standard of air quality and purification than typical office buildings. Specialty Healthcare Specialty healthcare includes specialists in cardiology, oncology, OBGYN, mental health and other fields that cannot be completely addressed within a single general-care hospital. These specialty services can be offered in multi-tenant or single- tenant clinics, or on a contract basis within the existing hospitals. In addition, medical hardware suppliers and other support facilities are likely to locate in the medical district in the future. Research and Development Research and Development (R&D) facilities can be comparable to office buildings, flexible warehouses, or industrial properties depending upon the type of research being conducted. Often they need both types of facilities: an office in which to develop and market concepts and a lab or production room to conduct experiments and fabricate prototypes. Like MOBs they require a greater level of technology and often have higher energy and water consumption. They also require a greater level of security, as products may be in a highly secretive phase of development. R&D facilities benefit from proximity to universities and large research hospitals for prospective employees as ideas spin off from research conducted at these institutions. 187 50 College Station Medical District Master Plan Retail / Village Center A village center with a strong retail component could thrive within the medical district. Retail provides activity and amenities to the residents, employees and visitors of the medical district. Retail is the “theater” that will entertain visitors and create a sense of place, making the medical district more desirable for residents, visitors and employees of the area. Requirements for Success: • Visibility. Thousands of customers must pass and see the site on a daily basis. Daily traffic volumes of approximately 20,000 are desirable for most national retailers. SH 6 running through the medical district has daily traffic counts of 60,000 at the intersection of Rock Prairie Road. • Accessibility. Must be very easy to get to; daily- shopping or convenience retail should be on the “way home” (right) side of the street. • Central location vis-a-vis target markets. For example, grocery anchored centers should be within approximately one mile of 10,000 residents. • Manageable competitive environment. Most retailers will avoid an area if competitors are already located there. • Demographic match. Retailers choose sites located near their “target market” customers. • Anchor tenants. Retail developments are often “anchored” by one tenant (for example, a high- profile department store) who then attracts other tenants. • Sense of place, safety, cleanliness. • Contiguity. Urban retail must be continuous, or many shoppers will stop and turn back. • Parking capacity. Hotel Experience from other medical corridors shows that additional hotels and conference space will be needed in this medical district to accommodate visiting families, patients, and doctors. Requirements for Success: • Visitor amenities and attractions. • Easy access to major thoroughfares. • Co-location with other hotels. • Visibility. • Parking capacity. Office Office uses would be an excellent addition to the medical district as they would provide daytime activity to the area and are compatible with the other uses being proposed for the area. Requirements for Success: • Easy access to and from clients. • Accessibility to workforce and executive residences; offices tend to be sited near the center of metro regions or at major transportation hubs. • “Address status.” • Proximity to suppliers and collaborator firms. • Parking capacity. • Proximity to support services: banking, food, hotels and other services. • Access to intra- and inter-regional transportation connections such as freeways, high capacity transit and airports. 188 51College Station Medical District Master Plan Independent Living Multi-unit complex marketed to seniors. Rent premium of approximately 10 percent (above other equivalent multifamily units) for communal dining, housekeeping and transportation services. Source: www.asla.org_2010awards_564.html photo by Susan Rudiek Loopnet real estate brokerage service, Leland Consulting Group Assisted Living Support services include laundry, food service, arranged activities, limited medical oversight and assistance to those with physical impediments such as blindness or decreased mobility. Source: www.lakewayjoseyranch.com Loopnet real estate brokerage service, Leland Consulting Group Skilled Nursing Facilities designed to provide 24-hour care and intensive medical attention. Staff assists residents with daily tasks such as bathing, dressing and other needs. Source: www.mirabellaassistedliving.com Loopnet real estate brokerage service, Leland Consulting Group Supporting Uses: Senior Housing Stakeholder interviews and research indicate strong recognition of the need for more senior housing and Long Term Care (LTC) facilities in College Station. Given the significant increases in the College Station over-65 age group over the next 20 years, and the likelihood of significant influx of retirees, the consultant team has estimated the level of senior housing demand. In the decade between 2010 and 2020, the number of residents of the City of College Station who are over the age of 65 is expected to increase by approximately 5,000, from 17,500 to 23,400. In the 50-mile market area, this demographic group is expected to increase by approximately 22,000, from 62,000 to 84,600. See Table 2 in Chapter 3 – Healthcare Trends and Regional Demographics for details. The facilities listed below show the typical range of senior housing, all of which are appropriate in varying quantities for the medical district. In addition to the categories shown below, continuing care facilities offer the full range of these senior housing types within a single large development. This allows residents to “age in place” and move easily from one housing type to another as their medical needs or preferences change. Continuing care facilities typically require a long-term contract from residents with an initial down payment, whereas the stand- alone facilities are often contracted on a monthly basis. Senior housing differs from other housing types in that it is not only a real estate investment, but also involves a hospitality and health care component that must be considered when operating the facility. The following sections evaluate the amount of senior housing likely to be in demand within the medical district. Demand for senior housing will come from two primary sources: latent demand and the net new senior population moving to the area. Latent Demand Interviews with College Station residents and those in the healthcare industry strongly indicate that while there are thousands of senior residents of the city and surrounding areas, there is very little senior housing within the City itself. Many seniors reported having to move out of the City in order to find a senior community that met their expectations. Thus, there is expected to be latent demand for senior housing in the market. Up to 420 units of senior housing could be quickly absorbed within the medical district if facilities were provided for a mere five percent of the over-65 population found in College Station- Bryan MSA in 2010, as shown in Table 3. This is a conservative estimate that does not take into account any seniors currently living outside of the area who would like to relocate, but have been unable to find a suitable location. With an aggressive marketing campaign the initial absorption could be even higher. 189 52 College Station Medical District Master Plan Table 6: Senior Housing Demand in the Market Area and Medical District Source: Department of Health and Human Services, US Census, Leland Consulting Group Figure 21: Elderly Living in the Community, by Type of Care Source: Long Term Care in America, National Commission for Long Term Care, 1999; Leland Consulting Group Net New Senior Housing Growth Besides the latent demand to meet the need of seniors already living in the community, there will be a continued need to supply senior housing facilities to those who will be turning 65 over the coming decade. The primary market area, or the 50-mile radius, is projected to increase from 62,000 people over age 65 in 2010 to a little over 84,000 by 2020. This is an increase of 22,000 people who will need varying levels of specialized care. As shown in Figure 21, nearly 47 percent of seniors live in some type of independent living facility. If the medical district were to capture 10 percent of these new households, there would be a need for 680 independent living units by 2020, as shown in Table 6. This can be further broken down by number of units projected for the medical district by other facility types. Given the medical district’s unique position in the region, this significant capture rate is reasonable. While it is true that LTC facilities and assisted living facilities may be located anywhere in the primary market area, those facilities located closer to the community hospitals are more attractive to the senior population for obvious reasons. Planning for the medical district should take into account adequate land reservation for senior housing proximate to or in the medical district. According to the National Commission for Long Term Care, 28 percent of seniors prefer to remain in their homes or to live with family members rather than move to a senior housing facility. Seniors with a preference for living in unaffiliated private residences will most likely not be captured in the medical district and are not included in the senior housing demand projection. 190 53College Station Medical District Master Plan Town Houses or Row Houses 15 to 25 du/acre, 2 to 3 stories Surface parking or parking within each unit Source:Leland Consulting Group Wood Frame Condos or Apartments 20 to 35 du/acre, 2 to 3 stories Surface, garage or tuck under parking Source:Leland Consulting Group Mixed Use Mid-Rise 40 to 60 du/acre, 4 to 6 stories Structured parking Source:Leland Consulting Group Single-Family Housing 5 to 10 du/acre, 1 to 2 stories Surface parking Source: Istockphoto.com Cluster or Cottage Housing 10 to 25 du/acres, 1 to 2 stories Surface parking Source:Leland Consulting Group Supporting Uses: Single-Family and Multifamily Housing As previously stated, the housing market in College Station and other locales in the state has changed significantly over the past several years. In contrast to the middle of the last decade, the best selling houses in College Station are smaller (1,500 to 1,800 square feet) and considerably less expensive ($150,000 to $300,000 maximum). Some houses priced in the $400,000 range have been sitting on the market for more than two years. The core of the short-term housing market is seen as those seeking affordable homes and downsizing retirees who have moved out of large homes and are now looking for comparatively smaller and lower-maintenance homes, including “cluster” or “cottage” communities. Both trends are well suited for the medical district. Requirements for Success • Critical mass: adjacent residential neighborhoods and urban amenities (schools, parks, retail, and services). • Safety. • Large share of one and two person households within market area. • Easy access to employment centers. 191 December 13, 2012 Regular Agenda Item No. 3 College Station Medical District Tax Increment Reinvestment Zone #19 To: David Neeley, City Manager From: Bob Cowell, AICP, CNU-A, Executive Director of Planning & Development Services Agenda Caption: Public Hearing, presentation, possible action and discussion regarding an Ordinance designating the Eastern portion of the College Station Medical District as Reinvestment Zone Number 19, City of College Station, Texas, Enumerating the qualifying criteria, adopting a preliminary development and financing plan, and establishing a Board of Directors for such Zone, and other matters relating thereto. Relationship to Strategic Goals: Core Services and Infrastructure, Financially Sustainable City, Diverse Growing Economy, and Improving Mobility Recommendation: Staff recommends approval. Summary: In October of 2012, the City Council approved an amendment of the City’s Comprehensive Plan to include the College Station Medical District Master Plan. To realize the Vision and economic development opportunities realized in the Master Plan, significant barriers to development must be overcome. These barriers include, but are not limited to lack of basic infrastructure (potable water, fire flow, sanitary sewer, etc) to serve development in the area and lack of transportation capacity (vehicular, pedestrian, etc) to meet the mobility needs present in the area. The approved Master Plan identified a series of financial and management tools necessary to overcome these barriers and to maximize the development potential of the area. A key tool identified in the Master Plan is the use of Tax Increment Reinvestment Zones (TIRZ). Staff has proposed the establishment of two TIRZ in the District. This request addresses TIRZ B, which encompasses the area east of the SH6/Rock Prairie Road Bridge and includes most of the undeveloped properties within the District. Development projects in this area include Rock Prairie Road (East), Barron Road, Lakeway Drive, potable water, fire flow water supply, greenway trails, sanitary sewer service, and other public works. It is projected that new development in this portion of the District will meet or exceed $283 Million over a twenty year period. This development activity would yield an increment of approximately $30.8 Million in tax proceeds. These proceeds would be used to fund the required improvement projects, either through reimbursement to private developers, repayment of issued debt, “pay as you go” basis, or a combination of these and others. Budget & Financial Summary: Refer to the Preliminary Project and Finance Plan Reviewed and Approved by Legal: Yes Attachments: 1. Ordinance 2. TIRZ Boundary Map and Legal Description 3. Preliminary Project and Financing Plan 192 193 194 195 196 197 Joe Orr, Inc. Surveyors & Engineers 2167 Post Oak Circle College Station, Texas 77845 (979) 693-2777 Tax Increment Reinvestment Zone area B -1301.76 acres (net) College Station, Texas December 2012 All that certain tract or parcel of land lying and being situated in the Thomas Caruthers league (abstract no. 9) and Robert Stevenson league (abstract no. 54) in College Station, Brazos County, Texas, generally being the area between State Highway no. 6 and Rock Prairie Road East, from Medical Avenue to William D. Fitch Parkway, save and except all of Lot 1, Rock Prairie Baptist Church (vol. 7312, pg. 207) lying south of the south right-of-way of Rock Prairie Road East, and the boundary being more particularly described as follows: Beginning at the intersection of the south right-of-way line of Rock Prairie Road East (60 feet south of surveyed centerline) and the east boundary of Block 7 of the Scott & White Healthcare Subdivision (vol. 10179, pg. 50), being the northeast comer of Lot 1, Block 7 of said subdivision, and from where City of College Station GPS control monument no. 9 bears S 82° 02' 35" E ­ 7016.5 feet. Thence N 2 ° 42' 34" W -120.04 feet along an extension of the said east boundary line of Block 7, to a point in the north right-of-way line of Rock Prairie Road East; Thence along the north right-of-way lines of Rock Prairie Road East (59.0 feet north of the surveyed centerline) as follows: S 86° 27' 34" E -1771.13 feet, S 85° 02' 05" E -1228.54 feet and S 84° 23' 02" E -10.29 feet to a right-of-way offset point in the common line of the Dale and Reba Conrad 26.25 acre tract (vol. 460, pg. 505) and the Flying Ace Ranch, Ltd. 26.245 acre tract (vol. 3767, pg.237); Thence S 24° 22' 52" W -1.58 feet along said common tract line to another offset point in the north right-of-way line of Rock Prairie Road East; Thence along the north right-of-way lines of Rock Prairie Road East (57.5 feet north of the surveyed centerline) as follows: S 84° 23' 02" E -606.93 feet, S 82° 02' 02" E -1453.40 feet, S 77° 01' 02" E -1052.59 feet, S 76° 28' 02" E -2876.58 feet, S 69° 53' 32" E -2812.30 feet to the beginning of a tangent curve to the right with a radius of 1057.50 feet, along said curve through a central angle of 11 ° 43' 34" to a point in the old northeast prescriptive right-of-way fenceline, and S 69° 17' 50" E -269.35 feet along said fenceline to the southeast line of the Hartzell Elkins 35.37 acre tract (vol. 1920, pg. 323) and northwest line of William D. Fitch Parkway; TIRZB Page 1 of4 198 Thence across Rock Prairie Road East as follows: S 42° 32' 30" W -32.00 feet to the south comer of said Elkins tract, called to be in the centerline of the road, S 19° 52' 04" W -36.01 feet to the east comer of the College Station Independent School District 44.535 acre tract (voL 8413, pg. 291) at the old right-of-way fence comer post, and S 41 ° 51' 48" W 170.08 feet along the southeast line of said C.S.I.S.D. tract and northwest line of Fitch Parkway to its intersection with the south right­ of-way chamfer of Rock Prairie Road East; Thence along the south right-of-way lines of Rock Prairie Road East (57.5 feet south of the surveyed centerline) as follows: N 5° 38' 11" W -67.56 feet, N 53° 08' 10" W -112.88 feet to the beginning of a tangent curve to the left with a radius of942.50 feet, along said curve through a central angle of 16° 45' 22" to the point of tangency, and N 69° 53' 32" W 551.37 feet to the common line of said C.S.I.S.D. tract and the Brazos Valley Solid Waste Management Agency, Inc. 76.00 acre Tract II (vol. 9857, pg. 186); Thence S 41 ° 51' 48" W -1842.68 feet along said common tract line to its southwest end in a northeast line of the RV.S.W.M.A. 179.99 acre Tract I; Thence S 48° 05' 47" E -941.57 feet, along the common line of said Tract I and the C.S.I.S.D. tract to their common comer in the northwest right-of-way of William D. Fitch Parkway; Thence S 41 ° 51' 48" W -1425.30 feet, along said northwest right-of-way line, to the south comer of the said B.V.S.W.M.A. Tract I; Thence S 41 ° 51' 48" W -1066.80 feet, continuing along said northwest right-of-way line of William D. Fitch Parkway, to the east common comer of the City of College Station 140.29 acre Tract One (vol. 3900, pg. 188) and Spring Meadows Phase I (vol. 5106, pg. 284); Thence along the southern boundaries of multiple City of College Station tracts (vol. 3900, pgs. 188 & 223, vol 5056, pg. 43) as follows: N 73° 00' 00" W -496.40 feet, S 51 ° 00' 00" W 175.05 feet, N 76° 00' 00" W -200.00 feet, S 41 ° 51' 44" W -51.88 feet, N 70° 46' 00" W -157.10 feet, S 41° 51' 44" W­ 262.67 feet, N 82° 55' 43" W -700.87 feet, S 41 ° 52' 26" W 650.00, N 48° 08' 02" W 412.47 feet, S 66° 47' 54" W 827.57 feet, N 47° 45' 25" W -129.90 feet, S 28° 59' 29" W -2.01 feet, S 41 ° 48' 43" W 336.13 feet, S 48° 45' 08" E 440.00 feet and S 53 ° 00'00" W -1304.90 feet to the northeast right-of-way line of State Highway no. 6; Thence along the northeast right-of-way lines of said highway as follows: N 49° 25' 00" W -438.00 feet, N 55° 07' 38" W -201.00 feet, N 49° 25' 00" W -751.78 feet to the west comer of the City of College Station 36.9 acre tract (vol. 4329, pg. 134), and N 49° 25' 00" W 1025.93 feet to the south comer of Barron Park Subdivision (vol. 939, pg.209); TIRZB Page 2 of4 199 Thence along the southeast, northeast and northwest lines of Lots 1 and 2 of said Barron Park Subdivision as follows: S 41 0 09' 46" E -1353.16 feet, N 49° 12' 46" W 88.68 feet to the south comer of the City of College Station 100.64 acre tract (vol. 6927, pg. 226), N 54° 01' 24" W -291.11 feet, N 64° 21' 21" W 117.03 feet, N 54° 53' 54" W -24.95 feet, N 53° 19' 32" W -113.87 feet, N 49° 26' 59" W -190.11 feet and S 41 ° 09' 38" W -1286.04 feet to the common comer of said Lot 2 and Lot 3 in the northeast right-of-way line of State Highway no. 6; Thence along the said northeast right-of-way lines of said highway as follows: N 47° 46' 18" W 537.86 feet to the southwest common comer of Lot 3 of said Barron Park Subdivision and that City of College Station 46.60 acre tract (vol. 3310, pg. 321), N 47° 46' 48" W -65.34 feet, N 55° 01' 37" W 201.00 feet, N 49° 25' 00" W -600.00 feet and N 44° 08' 33" W -147.79 feet to the southwest common comer of said 46.60 acre tract and the Barker Subdivision (vol. 5101, pg. 182); Thence N 38° 51' 07" E -279.95 feet along the southeast line of said Barker Subdivision to its east comer; Thence N 47° 42' 16" W 1053.70 feet along the northeast line of said Barker Subdivision and continuing along the northeast line of Cooper's Subdivision (vol. 4708, pg. 230) to its north comer, also being the east comer of the Harley Subdivision (voL 3961, pg. 236) and the south comer of that lliD Properties, LLC 2.77 acre Tract One (vol. 10144, pg. 203); Thence along the south, east and north lines of said lliD Properties tract as follows: N 42° 1 l' 04" E -175.00 feet, N 47° 42' 56" W -638.83 feet and S 72° 19' 02" W 202.14 feet to the northeast line of said Harley Subdivision and a southwest line of that M.D. Wheeler, Ltd. 71.52 acre Tract Two (voL 3007, pg. 341); Thence along the southwest lines of said Wheeler Tract Two and continuing along the southeast lines of the Wheeler 10.01 acre Tract One as follows: N 47° 42' 33" W 177.08 feet, N 46° 46' 09" W -304.24 feet, S 21° 21' 46" W 145.09 feet and S 41 °43' 32" W -194.25 feet, returning to the northeast right-of-way line of State Highway no. 6; Thence along the said highway northeast right-of-way lines as follows: N 42 0 21' 25" W -105.18 feet, N 36° 45' 17" W -383.87 feet, N 27° 43' 31" W -192.30 feet and N 34° 21' 26" W -55.00 feet to the southeast line of Block 4 ofthe said Scott & White Healthcare Subdivision; Thence along the east boundary lines of said Scott & White subdivision as follows: N 41° 15' 39" E -1224.44 feet, N 47° 31' 11" W -128.13 feet, N 50° 49' 32" E -930.60 feet and N 2° 42' 34" W -1023.83 feet to the Point of Beginning and containing 1308.51 acres of land more or less. TIRZB Page 3 of4 200 SAVE and EXCEPT the following tract: Beginning at the intersection of the south right-of-way line of Rock Prairie Road East (57.5 feet south of the surveyed centerline) and the west line of Lot 1 of Rock Prairie Baptist Church (vol. 7312, pg. 207), from where City of College Station GPS control monument no. 9 bears S 78° 01' 24" E -3240.0 feet. Thence S 82° 02' 02" E -414.05 feet along said south right-of-way line, parallel and 7.50 feet south of the north line of said Lot 1, to its intersection with the east line of said Lot 1; Thence S 20° 22' 54" E 600.82 feet along the east line of Lot 1 to its southeast comer; Thence N 82° 02' 02" W -699.33 feet along the south line of Lot 1 to its southwest comer; Thence N 7° 57' 58" E -528.77 feet along the west line of Lot 1 to the Point of Beginning and containing 6.76 acres ofland more or less. Leaving a net acreage for this described tract of 1301.76 acres more or less. Bearings are Texas State Plane, NAD-83(CORS) datum, based on City of College Station GPS control points and GPS observations. Volume and page numbers cited refer to the Brazos County public records. No monuments were set for this survey and found monuments are not cited. This document was prepared under 22 TAC §663.21 does not reflect the results of an on the ground survey and is not to be used to conveyor establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. See survey plat prepared with this description, dated December 2012. TIRZB Page 4 of4 201 202 City of College Station TAX INCREMENT REINVESTMENT ZONE NUMBER 19 Preliminary Project Plan and Preliminary Financing Plan December 13, 2012 203 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 2 Table of Contents Executive Summary 3 Overview Tax Increment Financing 5 Tax Increment Reinvestment Zone Number 19 6 Priority Projects and Costs 7 Benefits to Taxing Jurisdictions 9 Statutory Requirements for the final Project Plan and Financing Plan 10 Existing Conditions and Proposed Improvements 12 Project Plan Proposed Changes of Municipal Ordinances 18 List of Nonproject Costs 19 Method of Relocating Persons to be Displaced 20 List of Project Costs 21 Financing Plan Statement of Public Works/Public Improvements 22 Economic Feasibility Study 23 Estimated Amount of Bonded Indebtedness 24 Time When Costs or Obligations are Incurred 25 Financing Methods and Expected Sources of Revenue 26 Current Total Appraised Value of Property in the Zone 28 Estimated Captured Value of Zone in Each Year of Existence 29 Duration of Zone 30 Estimated TIRZ Number 19 Project Costs 32 Appendix Estimated TIRZ Number 19 Revenue 33 TIRZ Number 19 Legal Description 34 Medical District Master Plan – Chapters 3 & 4 39 204 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 3 Executive Summary In 2011 the City of College Station partnered with the College Station Medical Center (The Med) and other stakeholders in the creation of a Medical District to serve as a focused healthcare and wellness district within the City. The Medical District focuses on the general area around State Highway 6 and Rock Prairie Road, and includes The Med and the future Scott & White Hospital, both along Rock Prairie Road. The City’s consulting team, led by Schrickel, Rollins and Associates, Inc. worked with a City Council appointed Advisory Committee consisting of various stakeholders from throughout the community. The Advisory Committee, consultant team, and staff completed their work on the draft plan for the Medical District in late 2011 and the results were presented to a joint meeting of the City Council and the Advisory Committee. Staff then continued to work to refine the land use and transportation components of the Master Plan, including expanding the Medical District to include properties further to the south. Adopted October 11, 2012, the Medical District Master Plan was an amendment to the City’s Comprehensive Plan, altering the Future Land Use and Character map, the City’s Thoroughfare Plan, and Thoroughfare Context map. In response to changed thoroughfare alignments, the City’s Water Master Plan, Proposed Pedestrian Facilities, and Proposed Bicycle Facilities maps will also need to be amended in conjunction with the new thoroughfares. Additional trails have been added to the Proposed Pedestrian Facilities map in the Bicycle, Pedestrian, and Greenways Master Plan to create the walkable community envisioned by the Medical District Master Plan. An Implementation Report was written by City staff to accompany the Master Plan. The Report provides details regarding potential development regulations and standards, management structure, funding mechanisms, and capital expenditures needed for the success of the Medical District. The Report recommended the pursuance of the creation of Municipal Management Districts and Tax Increment Reinvestment Zones (TIRZ) as the two most appropriate tools to facilitate the implementation of the Medical District. Prior to the creation of any TIRZ, the City must develop a Preliminary Financing Plan. A Preliminary Project Plan and the Preliminary Financing Plan identify the proposed projects, and demonstrate the financing method and expected increment for the Zone. 205 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 4 This document serves as the Preliminary Project Plan and Preliminary Financing Plan for the Tax Increment Reinvestment Zone Number 19, City of College Station, as required by Chapter 311 of the Texas Tax Code. In addition to implementing the Medical District, the purpose of the Zone, in conjunction with a Municipal Management District, is to provide an opportunity to further diversify the economic base and enhance the overall quality of life for all College Station residents. The Zone is to finance public improvements related to construction of roadways, drainage, water, sanitary sewer, storm sewer, internet broadband, trails, greenways and open spaces to support development of medical uses, commercial activity, single family residential units, and multi- family units in the City of College Station Medical District. The owners of real property in the Zone will advance funds for certain project costs and will be reimbursed from tax increment revenues of the Zone as provided in a separate reimbursement agreement and other documentation between the developer and the TIRZ. The City will fund other projects and a portion of those costs will be reimbursed through the Zone. In accordance with Section 311.010(h), Texas Tax Code, the Zone’s board of directors will develop and submit for City Council approval programs for the public purpose of developing or expanding transportation services, water and wastewater services, and greenway trails, parks and open space infrastructure, to encourage medical activity, other business and commercial activity and residential development in the Zone. In addition, a Municipal Management District is proposed to be created through the Texas Legislature with boundaries generally contiguous to the Zone proposed in this Plan. A Municipal Management District is a special district created for the purpose of promoting, developing, encouraging, and maintaining employment, commerce, economic development, and general public welfare within a defined area. Its overall purpose is to supplement city services within the district. The management district will be funded by an assessment and ad valorem tax on property within its boundaries to provide public projects and services such as landscaping, lighting, signage, streets and walkways, drainages, solid waste, water, wastewater, internet broadband, parks, parking facilities, transit systems, works of art, economic development and others. 206 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 5 Tax Increment Financing The Texas Constitution and multiple State statutes identify the role of economic development by both the State and its municipalities as a public purpose. While recognizing there is no single strategy, policy, or program for economic development, the Texas Legislature has created a vast array of tools that local governments have at their disposal. The objective of these tools is to not only encourage development and diversification of the Texas economy, but to simultaneously enhance the participating community’s overall quality of life. Such available tools were carefully evaluated in order to determine how best to implement the College Station Medical District from both an administrative and financial perspective. Participation in tax increment financing through the creation of a Tax Increment Reinvestment Zone is one such tool. According to the Texas Comptroller’s Biennial Report of Tax Increment Financing Zone Registry, as of December 2010, there were 172 reported tax increment reinvestment zones in Texas. Tax increment financing is used to provide large capital projects, infrastructure improvements, or other hard-costs within a created zone. These costs are funded by the increase, or tax increment, of future ad valorem tax revenue within the zone for a participating jurisdiction (e.g. City of College Station, Brazos County). A jurisdiction may dedicate all, a portion, or none of the tax increment to the fund. 207 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 6 Tax Increment Reinvestment Zone Number 19 The College Station Medical District Tax Increment Reinvestment Zone Number 19 is located generally east of the future Scott & White Hospital on Rock Prairie Road. The Zone encompasses property owned by various public, semi-public, and private landholders including the City of College Station’s planned Spring Creek Corporate Campus. The legal description of the Zone can be found in the Appendix. 208 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 7 Priority Projects and Costs The Zone includes areas that are largely underdeveloped. Though there are currently funded capital projects to serve this area, the majority of the needed infrastructure projects are unfunded. All identified costs are for infrastructure to serve the Zone, and are primarily within the Medical District and Zone boundaries. The largest exception is sewer, which requires, and the costs include, notable offsite improvements beginning at the Lick Creek Wastewater Treatment Plant. It should be noted that expanded sewer service is critical for development of the Zone and much of the Medical District east of State Highway 6. The infrastructure identified and estimated in this document is the primary or main infrastructure to serve the area. Additional future infrastructure will be required by and with the specific developments. This primary infrastructure has been previously planned and sized through general master planning efforts such as the Thoroughfare Plan, Wastewater Master Plan, etc. The City will likely play a larger role in participating or funding the initial primary infrastructure, where private developers will likely be responsible for all additional infrastructures. This additional infrastructure is not depicted or quantified in any form in this Preliminary Project Plan and Preliminary Financing Plan, though development will require many further minor extensions. For example, several roadways will be required in addition to the primary thoroughfares, not only to serve new lots, but to break block length, provide connectivity, secondary emergency access, etc. The provided estimates were intended to be conservative or inflated, to account for design costs, future construction costs, unforeseen considerations, some enhancements, and contingencies. In the future, with more detailed information, the estimates should be updated for more accurate planning. Additionally, the Carters Creek Wastewater Treatment Plant expansion has not been included in these estimates as it was not deemed necessary for the specific development of the District; though again, each would be appropriate for future planning consideration. Over the course of the Medical District master planning process, a series of priority projects were identified as projects that must be completed to facilitate development within the Zone. These projects can be further delineated as Priority One Projects and Priority Two Projects. Priority One Projects are those that must be complete to accommodate any development at all. 209 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 8 Priority Two Projects are those that are needed to provide a wider range of development options. Thoroughfares PRIORITY ONE PROJECTS Description From To Class Pvmt (ft) Length (ft) Cost ($) Bird Pond Rock Prairie Lakeway 4 Ln Min Art 72 2,800 $3,290,000 Barron Lakeway Rock Prairie 4 Ln Min Art 72 5,400 $6,345,000 Lakeway Medical Barron 4 Ln Maj Coll 54 3,000 $3,030,000 Wastewater Description From To Diameter (in) Length (ft) Cost ($) Lick Creek – Trunk Ph II S of Pebble Crk Sub WD Fitch 36 6,700 $3,350,000 Spring Creek – Baseline C WD Fitch Baseline A / C fork 36 6,000 $2,640,000 Spring Creek – Baseline A Baseline A / C fork Lift Station #2 (SH6) 24 7,500 $3,300,000 Water Mains Along From To Diameter (in) Length (ft) Cost ($) Bird Pond Rock Prairie SH 6 12 4,800 $360,000 Barron Lakeway Rock Prairie 12 5,400 $405,000 Lakeway Medical Barron 12 3,000 $225,000 Barron SH 6 Lakeway 12 2,000 $150,000 PRIORITY ONE PROJECTS TOTAL = $23,095,000 Thoroughfares PRIORITY TWO PROJECTS Description From To Class Pvmt (ft) Length (ft) Cost ($) Rock Prairie E SH 6 Bird Pond 4 Ln Maj Art 78 5,200 $3,302,000 Unnamed Rock Prairie Lakeway 2 Ln Min Coll 38 2,300 $3,367,000 Greenway Trails Along From To Width (ft) Length (ft) Cost ($) LCT 11 Rock Prairie Lick Ck (B) 10 4,400 $760,000 PRIORITY TWO PROJECTS TOTAL = $7,429,000 PROJECTS TOTAL = $30,524,000 210 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 9 Benefits to Taxing Jurisdictions It should be noted that the majority of the planned infrastructure is required for the development of this area even if the Zone is not formed. However, this effort, in short, plans to focus and broaden medical and urban uses, enhance and accelerate the delivery of primary infrastructure, and establish financial mechanisms to make this possible and attractive, to ultimately bring an increased tax base of medical uses and activity, as well as urban densities, which likely would not occur otherwise. It is anticipated that the proposed improvements in this plan will provide the basis for nearly $283 million in combined commercial and residential capital development within the City of College Station, Brazos County, and the College Station Independent School District. Residential (SFR) $25 Million Years 1-5 Non-Residential $1.5 Million Residential (SFR) $25 Million Years 6-10 Multi-Family and Non-Residential $70.5 Million Multi-Family and Non-Residential $161 Million Years 11-20 Estimated Total $283 Million 211 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 10 Statutory Requirements for the final Project Plan and Financing Plan Texas Tax Code Subtitle B – Special Property Tax Provisions Chapter 311 – Tax Increment Financing Act Section 311.011 – Project and Financing Plans (a) The board of directors of a reinvestment zone shall prepare and adopt a project plan and a reinvestment zone financing plan for the zone and submit the plans to the governing body of the municipality or county that designated the zone. (b) The project plan must include: (1) a description and map showing existing uses and conditions of real property in the zone and proposed uses of that property; (2) proposed changes of zoning ordinances, the master plan of the municipality, building codes, other municipal ordinances, and subdivision rules and regulations, if any, of the county, if applicable; (3) a list of estimated nonproject costs; and (4) a statement of a method of relocating persons to be displaced, if any, as a result of implementing the plan. (c) The reinvestment zone financing plan must include: (1) a detailed list describing the estimated project costs of the zone, including administrative expenses; (2) a statement listing the proposed kind, number, and location of all public works or public improvements to be financed by the zone; (3) a finding that the plan is economically feasible and an economic feasibility study; (4) the estimated amount of bonded indebtedness to be incurred; (5) the estimated time when related costs or monetary obligations are to be incurred; (6) a description of the methods of financing all estimated project costs and the expected sources of revenue to finance or pay project costs, including the percentage of tax increment to be derived from the property taxes of each taxing unit anticipated to contribute tax increment to the zone that levies taxes on real property in the zone; (7) the current total appraised value of taxable real property in the zone; (8) the estimated captured appraised value of the zone during each year of its existence; and (9) the duration of the zone. (d) The governing body of the municipality or county that designated the zone must approve a project plan or reinvestment zone financing plan after its adoption by the board. The approval must be by ordinance, in the case of a municipality, or by order, in the case of a county, that finds that the plan is feasible. (e) The board of directors of the zone at any time may adopt an amendment to the project plan consistent with the requirements and limitations of this chapter. The amendment takes effect on approval by the governing body of the municipality or county that created the zone. That approval must be by ordinance, in the case of a municipality, or by order, in the case of a 212 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 11 county. 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). (f) In a zone designated under Section 311.005(a)(4) that is located in a county with a population of 3.3 million or more, the project plan must provide that at least one-third of the tax increment of the zone be used to provide affordable housing during the term of the zone. (g) A school district that participates in a zone is not required to increase the percentage or amount of the tax increment to be contributed by the school district because of an amendment to the project plan or reinvestment zone financing plan for the zone unless the governing body of the school district by official action approves the amendment. (h) Unless specifically provided otherwise in the plan, all amounts contained in the project plan or reinvestment zone financing plan, including amounts of expenditures relating to project costs and amounts relating to participation by taxing units, are considered estimates and do not act as a limitation on the described items, but the amounts contained in the project plan or reinvestment zone financing plan may not vary materially from the estimates. This subsection may not be construed to increase the amount of any reduction under Section 403.302(d)(4), Government Code, in the total taxable value of the property in a school district that participates in the zone as computed under Section 403.302(d) of that code. Added by Acts 1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 1137, Sec. 24, eff. Sept. 1, 1989; Acts 1999, 76th Leg., ch. 983, Sec. 4, eff. June 18, 1999; Acts 2001, 77th Leg., ch. 669, Sec. 120, eff. Sept. 1, 2001.Amended by: Acts 2005, 79th Leg., Ch. 1094, Sec. 43, eff. September 1, 2005.Acts 2007, 80th Leg., R.S., Ch. 921, Sec. 14.010, eff. September 1, 2007.Acts 2011, 82nd Leg., R.S., Ch. 1032, Sec. 11, eff. June 17, 2011. 213 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 12 Existing Conditions and Proposed Improvements “A description and map showing existing uses and conditions of real property in the zone and proposed uses of that property” The following maps represent the existing land use, comprehensive land use plan, and proposed improvements to the Zone. Existing Land Use 214 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 13 Comprehensive Land Use Plan 215 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 14 Thoroughfares PRIORITY ONE PROJECTS Description From To Class Pvmt (ft) Length (ft) Cost ($) Bird Pond Rock Prairie Lakeway 4 Ln Min Art 72 2,800 $3,290,000 Barron Lakeway Rock Prairie 4 Ln Min Art 72 5,400 $6,345,000 Lakeway Medical Barron 4 Ln Maj Coll 54 3,000 $3,030,000 Thoroughfares PRIORITY TWO PROJECTS Description From To Class Pvmt (ft) Length (ft) Cost ($) Rock Prairie E SH 6 Bird Pond 4 Ln Maj Art 78 5,200 $3,302,000 Unnamed Rock Prairie Lakeway 2 Ln Min Coll 38 2,300 $3,367,000 216 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 15 Wastewater PRIORITY ONE PROJECTS Description From To Diameter (in) Length (ft) Cost ($) Lick Creek – Trunk Ph II S of Pebble Crk Sub WD Fitch 36 6,700 $3,350,000 Spring Creek – Baseline C WD Fitch Baseline A / C fork 36 6,000 $2,640,000 Spring Creek – Baseline A Baseline A / C fork Lift Station #2 (SH6) 24 7,500 $3,300,000 217 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 16 Water PRIORITY ONE PROJECTS Along From To Diameter (in) Length (ft) Cost ($) Bird Pond Rock Prairie SH 6 12 4,800 $360,000 Barron Lakeway Rock Prairie 12 5,400 $405,000 Lakeway Medical Barron 12 3,000 $225,000 Barron SH 6 Lakeway 12 2,000 $150,000 218 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 17 Greenway Trails PRIORITY TWO PROJECTS Along From To Width (ft) Length (ft) Cost ($) LCT 11 Rock Prairie Lick Ck (B) 10 4,400 $760,000 219 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 18 Proposed Changes of Municipal Ordinances “Proposed changes of zoning ordinances, the master plan of the municipality, building codes, other municipal ordinances, and subdivision rules and regulations, if any, of the county, if applicable” Adopted October 11, 2012, the Medical District Master Plan was an amendment to the City’s Comprehensive Plan, altering the Future Land Use and Character map, the City’s Thoroughfare Plan, and Thoroughfare Context map. In response to changed thoroughfare alignments, the City’s Water Master Plan, Proposed Pedestrian Facilities, and Proposed Bicycle Facilities maps will also need to be amended in conjunction with the new thoroughfares. Additional trails have been added to the Proposed Pedestrian Facilities map in the Bicycle, Pedestrian, and Greenways Master Plan to create the walkable community envisioned by the Medical District Master Plan. All infrastructure is proposed to follow the Bryan / College Station Unified Design Standards, except as otherwise noted in the Medical District Master Plan. The City of College Station has also adopted the following International Building Codes to regulate construction: • International Building Code (2012 Edition) with Adopted Amendments • International Residential Code (2012 Edition) with Adopted Amendments • International Plumbing Code (2012 Edition) with Adopted Amendments • International Mechanical Code (2012 Edition) with Adopted Amendments • International Fuel Gas Code (2012 Edition) with Adopted Amendments • International Energy Conservation Code (2012 Edition) with Adopted Amendments • International Property Maintenance Code (2012 Edition) with Adopted Amendments • International Fire Code (2012 Edition) with Adopted Amendments • International Life Safety Code (2012 Edition) • National Electrical Code (2011 Edition) with Adopted Amendments 220 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 19 List of Nonproject Costs “A list of estimated nonproject costs” Significant to the success of the Medical District, the following items were not included or estimated within this Preliminary Project Plan: way-finding, district branding, hardscape enhancements, transit, bus stops, and other nonproject costs. Such costs may be funded from developers, the City, a Municipal Management District, and/or other sources. Though the majority of the needed infrastructure projects are unfunded, there is also certain funded capital projects considered to be nonproject costs. These funded projects generally mean either the project was included and approved with a bond election (i.e. Thoroughfares and Trails), included within Water Services 5-Year Budget (i.e. Water and Wastewater Mains), funded by the State, or funded privately, etc. Funded does not necessarily mean that construction costs are currently appropriated. Thoroughfares Description From To Class Pvmt (ft) Length (ft) Cost ($) Lakeway Barron Spring Creek 4 Ln Maj Coll 54 5,300 $9,868,000 Barron SH 6 Lakeway 4 Ln Min Art 72 2,000 $5,418,000 Rock Prairie E Bird Pond WD Fitch 2 Ln Min Coll 30 10,600 $2,055,000 Wastewater Description From To Diameter (in) Length (ft) Cost ($) Lick Creek – Trunk Ph I Lick Creek Plant South of Pebble Crk Sub 36 5,400 $2,800,000 Greenway Trails Along From To Width (ft) Length (ft) Cost ($) Lick Creek (east) SH 6 & Barron WD Fitch 10 10,000 $2,000,000 221 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 20 Method of Relocating Persons to be Displaced “A statement of a method of relocating persons to be displaced, if any, as a result of implementing the plan” There is no intended displacement of residents. 222 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 21 List of Project Costs “A detailed list describing the estimated project costs of the zone, including administrative expenses” The following table itemizes the project costs for the Zone for which reimbursement is available. The developer will advance funds necessary for the construction of certain public improvements and will be reimbursed as provided in separate agreements between the developer and the TIRZ. Total project costs are estimated in today’s dollars to be $30,824,000. Project costs include roadway improvements, water improvements, wastewater improvements, and greenway trails. Also included in these estimates are design costs, sidewalks, floodplain mitigation, bridges, electric lines, streetlights, signals, pavers, enhanced vegetation etc. Of this amount administrative and implementation expenses are estimated to be $300,000 over the 20 year life of the TIRZ. Pursuant to Chapter 311, Texas Tax Code, line items may be adjusted with approval of the TIRZ board of directors. These cost estimates will be revised as more detailed design occurs on the individual projects. Estimated TIRZ Number 19 Project Costs Estimated Infrastructure Costs - Priority One Projects Lakeway - From Medical to Barron 3,030,000$ Barron - From Lakeway to Rock Prairie 6,345,000$ Bird Pond - From Rock Prairie to Lakeway 3,290,000$ Streets Subtotal 12,665,000$ Lick Creek Trunk Line Ph II 3,350,000$ Spring Creek - Baseline C 2,640,000$ Spring Creek - Baseline A 3,300,000$ Wastewater Subtotal 9,290,000$ Bird Pond Road – From Rock Prairie to SH6 360,000$ Barron Road – From Lakeway to Rock Prairie 405,000$ Lakeway – From Medical to Barron 225,000$ Barron Road – From SH 6 to Lakeway 150,000$ Water Subtotal 1,140,000$ Estimated Infrastructure Costs - Priority One Projects 23,095,000$ Estimated Infrastructure Costs - Priority Two Projects Rock Prairie Road East - From SH 6 to Bird Pond 3,302,000$ Unnamed - From Rock Prairie to Lakeway 3,367,000$ Lick Creek Trail Greenway 760,000$ Subtotal 7,429,000$ Estimated Infrastructure Costs - Priority Two Projects 7,429,000$ Total Estimated Infrastructure Costs 30,524,000$ Other Costs Developer Reimbursement Interest -$ Organizational Costs, Zone Creation and Administration 250,000$ Permitting and Related Fees 50,000$ Subtotal 300,000$ Total Estimated Costs 30,824,000$ 223 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 22 Statement of Public Works/Public Improvements “A statement listing the proposed kind, number, and location of all public works or public improvements to be financed by the zone” The public infrastructure improvements that the TIRZ is designed to facilitate will be located throughout the Zone. These improvements will provide public infrastructure for the Medical District to include commercial and residential development. This infrastructure includes street extensions and widening, wastewater line extensions, water main extensions, and greenway trail projects. Maps on pages 14 – 17 illustrate the location of the improvements within the Zone. The following is a list of improvements to be made in the Zone using funds generated in the Zone. Street Extension/Widening Infrastructure Lakeway Extension – From Medical to Barron Priority One Barron Extension – From Lakeway to Rock Prairie Bird Pond Extension – From Rock Prairie to Lakeway Rock Prairie Road East Widening – From SH 6 to Bird Pond Priority Two Unnamed Extension – From Rock Prairie to Lakeway Wastewater Service Infrastructure Lick Creek Trunk Line Phase II Priority One Spring Creek – Baseline C Spring Creek – Baseline A Water Service Infrastructure Bird Pond Road – From Rock Prairie to SH6 Priority One Barron Road – From Lakeway to Rock Prairie Lakeway – From Medical to Barron Barron Road – From SH 6 to Lakeway Greenway Trails, Parks and Open Space Infrastructure Lick Creek Trail Greenway – From Rock Prairie to Lick Creek Priority Two 224 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 23 Economic Feasibility Study “A finding that the plan is economically feasible and an economic feasibility study” Included in the Medical District Master Plan and as part of its corresponding work efforts, the City’s consultant team conducted market research and a market analysis to determine the economic feasibility of 1,700 acres that encompasses the Zone and adopted Medical District. The analysis included, but was not limited to, medical/healthcare uses, retail/village center, senior housing, and single-family/multi-family housing. The market research, market analysis, and resulting development program can be found in the Appendix. Prior to the adoption of the Final Financing Plan an Economic Feasibility Study will be completed on the estimated impact of the $283,000,000 in new development that is projected over the life of the Zone. 225 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 24 Estimated Amount of Bonded Indebtedness “The estimated amount of bonded indebtedness to be incurred” Bonds may be issued by the City of College Station and the MMD pursuant to an interlocal agreement with the Zone which pledges incremental revenue for debt service. Bond sizing will be based on the maximum amount Zone revenues could reasonably sustain according to the City’s financial advisor and market conditions at the time of issuance. 226 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 25 Time When Costs or Obligations are Incurred “The estimated time when related costs or monetary obligations are to be incurred” The time when related costs or monetary obligations are to be incurred is a function of the availability of TIRZ revenues. Details of the time when related costs or monetary obligations may be incurred are shown on the following table. This summary shows the time when TIRZ revenues are expected to be available to pay project costs. Estimated TIRZ Number 19 Revenue 100%83.94%Annual New New Non Res &Total New Captured COCS BC Total TIF Residential Multi Family Development Appraised Value Tax Revenue Tax Revenue Revenue Year 1 $0 $0 $0 -$ -$ -$ -$ Year 2 $3,000,000 $0 $3,000,000 3,000,000$ 12,921$ -$ 12,921$ Year 3 $5,000,000 $500,000 $5,500,000 8,500,000$ 36,608$ -$ 36,608$ Year 4 $8,000,000 $500,000 $8,500,000 17,000,000$ 73,217$ -$ 73,217$ Year 5 $9,000,000 $500,000 $9,500,000 26,500,000$ 114,132$ -$ 114,132$ Year 6 $5,000,000 $5,000,000 $10,000,000 36,500,000$ 157,201$ 148,595$ 305,796$ Year 7 $5,000,000 $10,000,000 $15,000,000 51,500,000$ 221,804$ 209,661$ 431,465$ Year 8 $5,000,000 $18,000,000 $23,000,000 74,500,000$ 320,862$ 303,296$ 624,158$ Year 9 $5,000,000 $18,000,000 $23,000,000 97,500,000$ 419,920$ 396,931$ 816,851$ Year 10 $5,000,000 $19,500,000 $24,500,000 122,000,000$ 525,438$ 496,673$ 1,022,111$ Year 11 $0 $10,000,000 $10,000,000 132,000,000$ 568,507$ 537,384$ 1,105,891$ Year 12 $0 $15,000,000 $15,000,000 147,000,000$ 633,110$ 598,450$ 1,231,560$ Year 13 $0 $15,000,000 $15,000,000 162,000,000$ 697,713$ 527,613$ 1,225,326$ Year 14 $0 $20,000,000 $20,000,000 182,000,000$ 783,850$ 592,751$ 1,376,601$ Year 15 $0 $20,000,000 $20,000,000 202,000,000$ 869,988$ 493,416$ 1,363,404$ Year 16 $0 $10,000,000 $10,000,000 212,000,000$ 913,056$ 517,843$ 1,430,899$ Year 17 $0 $15,000,000 $15,000,000 227,000,000$ 977,659$ 369,655$ 1,347,314$ Year 18 $0 $15,000,000 $15,000,000 242,000,000$ 1,042,263$ 394,082$ 1,436,344$ Year 19 $0 $20,000,000 $20,000,000 262,000,000$ 1,128,400$ 213,325$ 1,341,725$ Year 20 $0 $21,000,000 $21,000,000 283,000,000$ 1,218,844$ 230,424$ 1,449,268$ $50,000,000 $233,000,000 $283,000,000 10,715,493$ 6,030,099$ 16,745,591$ Brazos County 20 Years O&M Rate Years 1-5 0% Years 6-12 100% Years 13-14 80% Years 15-16 60% Years 17-18 40% Years 19-20 20% 227 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 26 Financing Methods and Expected Sources of Revenue “A description of the methods of financing all estimated project costs and the expected sources of revenue to finance or pay project costs, including the percentage of tax increment to be derived from the property taxes of each taxing unit anticipated to contribute tax increment to the zone that levies taxes on real property in the zone” Methods of Financing – The developer will advance funds for certain project costs, and the Zone will reimburse these costs from tax increment revenues as they are realized. The reimbursement will be as described in a separate agreement and other documentation between the developer and the city. A portion of the project costs will be borne by the developer as described in the Reimbursement Agreement. The City will also finance a portion of the cost of the projects through the sources outlined below. Sources of Tax Increment Revenues – The tax increment revenue necessary to pay the project costs is expected to come from increased property values in the Zone due to the construction of new commercial and residential buildings in the Zone. A Participation Agreement will be entered into with Brazos County formalizing the level of participation from Brazos County. Captured Value The following schedule shows the residential and commercial development schedules, and the assessed valuations resulting from the development. This represents the estimated incremental property values associated with the development. It is estimated that there will be $283,000,000 in captured property value in the Zone. Participation Levels City of College Station will participate at 100% of its ad valorem tax rate. Brazos County is proposed to participate with only the M&O portion of its ad valorem tax rate at the following levels. Years 1–5 0% Years 15-16 60% Years 6-12 100% Years 17-18 40% Years 13-14 80% Years 19-20 20% Estimated TIRZ Revenue The estimated captured property value in the Zone of $283,000,000 will generate captured property tax revenue from the City of College Station and Brazos County 228 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 27 totaling $16.7 million over the life of the TIRZ. These new revenues will be used to pay for a portion of the costs in the Zone. Other Revenue Sources – The City will provide other sources of revenue to fund a portion of these projects. • Funds generated through a proposed Municipal Management District (MMD) will also be a potential revenue source for the projects. • Utility revenues from the Water Fund and the Wastewater Fund will be used to pay for a portion of the water and wastewater projects. • Property tax revenues in the General Debt Service Fund may be used for the transportation and Trail projects through future bond authorizations for the issuance of General Obligation Bonds and/or the issuance of Certificates of Obligation. • If necessary, existing cash resources from the City’s General Fund may also be utilized to fund these projects. Estimated TIRZ Number 19 Revenue 100%83.94%Annual New New Non Res &Total New Captured COCS BC Total TIF Residential Multi Family Development Appraised Value Tax Revenue Tax Revenue Revenue Year 1 $0 $0 $0 -$ -$ -$ -$ Year 2 $3,000,000 $0 $3,000,000 3,000,000$ 12,921$ -$ 12,921$ Year 3 $5,000,000 $500,000 $5,500,000 8,500,000$ 36,608$ -$ 36,608$ Year 4 $8,000,000 $500,000 $8,500,000 17,000,000$ 73,217$ -$ 73,217$ Year 5 $9,000,000 $500,000 $9,500,000 26,500,000$ 114,132$ -$ 114,132$ Year 6 $5,000,000 $5,000,000 $10,000,000 36,500,000$ 157,201$ 148,595$ 305,796$ Year 7 $5,000,000 $10,000,000 $15,000,000 51,500,000$ 221,804$ 209,661$ 431,465$ Year 8 $5,000,000 $18,000,000 $23,000,000 74,500,000$ 320,862$ 303,296$ 624,158$ Year 9 $5,000,000 $18,000,000 $23,000,000 97,500,000$ 419,920$ 396,931$ 816,851$ Year 10 $5,000,000 $19,500,000 $24,500,000 122,000,000$ 525,438$ 496,673$ 1,022,111$ Year 11 $0 $10,000,000 $10,000,000 132,000,000$ 568,507$ 537,384$ 1,105,891$ Year 12 $0 $15,000,000 $15,000,000 147,000,000$ 633,110$ 598,450$ 1,231,560$ Year 13 $0 $15,000,000 $15,000,000 162,000,000$ 697,713$ 527,613$ 1,225,326$ Year 14 $0 $20,000,000 $20,000,000 182,000,000$ 783,850$ 592,751$ 1,376,601$ Year 15 $0 $20,000,000 $20,000,000 202,000,000$ 869,988$ 493,416$ 1,363,404$ Year 16 $0 $10,000,000 $10,000,000 212,000,000$ 913,056$ 517,843$ 1,430,899$ Year 17 $0 $15,000,000 $15,000,000 227,000,000$ 977,659$ 369,655$ 1,347,314$ Year 18 $0 $15,000,000 $15,000,000 242,000,000$ 1,042,263$ 394,082$ 1,436,344$ Year 19 $0 $20,000,000 $20,000,000 262,000,000$ 1,128,400$ 213,325$ 1,341,725$ Year 20 $0 $21,000,000 $21,000,000 283,000,000$ 1,218,844$ 230,424$ 1,449,268$ $50,000,000 $233,000,000 $283,000,000 10,715,493$ 6,030,099$ 16,745,591$ Brazos County 20 Years O&M Rate Years 1-5 0% Years 6-12 100% Years 13-14 80% Years 15-16 60% Years 17-18 40% Years 19-20 20% 229 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 28 Current Total Appraised Value of Property in the Zone “The current total appraised value of taxable real property in the zone” The current total appraised value of taxable real property within the Zone at the time of creation was $ 9,846,850. PROP_ID OWNERNAME EXEMPTCODE LANDACRES TOTALLANDV IMPVALUE TOTALVALUE R10720 BRAZOS VALLEY SOLID WASTE EX 119.53 418,360.00$ 230,350.00$ 648,710.00$ R10603 BRAZOS VALLEY SOLID WASTE EX 76.00 940,500.00$ 22,170.00$ 962,670.00$ R10579 BRAZOS VALLEY SOLID WASTE EX 7.17 118,310.00$ 590,090.00$ 708,400.00$ R10578 BRAZOS VALLEY SOLID WASTE EX 68.00 1,122,000.00$ -$ 1,122,000.00$ R10694 CLARK ARCHIE P 17.37 420,350.00$ 3,500.00$ 423,850.00$ R10693 CLARK ARCHIE P 2.24 54,210.00$ 42,340.00$ 96,550.00$ R10581 COLLEGE STATION CITY OF EX 384.19 12,551,490.00$ -$ 12,551,490.00$ R302665 COLLEGE STATION CITY OF EX 100.64 754,800.00$ -$ 754,800.00$ R10644 COLLEGE STATION CITY OF EX 68.56 1,131,240.00$ -$ 1,131,240.00$ R13867 COLLEGE STATION CITY OF EX 48.59 48,590.00$ -$ 48,590.00$ R10583 COLLEGE STATION LAND INVESTMENT LP HS, OV65 10.00 247,940.00$ 151,910.00$ 399,850.00$ R10584 COLLEGE STATION LAND INVESTMENT LP 221.97 1,664,750.00$ 53,010.00$ 1,717,760.00$ R82254 DWS DEVELOPMENT INC & 15.81 837,100.00$ -$ 837,100.00$ R10663 GOEN GRACE E TESTAMENTARY TRUST 2.53 42,860.00$ 126,000.00$ 168,860.00$ R10661 GOEN GRACE E TESTAMENTARY TRUST 11.42 193,460.00$ 1,200.00$ 194,660.00$ R10635 JAMIESON REGINA L 2.99 107,450.00$ 88,250.00$ 195,700.00$ R13877 M D WHEELER LTD 58.71 3,781,760.00$ -$ 3,781,760.00$ R10646 NELSON BARRY CRAIG DV2, HS, OV65 10.35 250,470.00$ 75,250.00$ 325,720.00$ R10637 PERRY BRIAN HOWARD HS 25.46 493,140.00$ 615,390.00$ 1,108,530.00$ R10696 SAVAGE EUGENE B III REVOCABLE TRUST 17.45 422,290.00$ -$ 422,290.00$ R10695 SAVAGE EUGENE B III REVOCABLE TRUST 2.24 54,210.00$ -$ 54,210.00$ R10634 WHITE HOUSTON 2.00 71,870.00$ 48,140.00$ 120,010.00$ 1,273.22 25,727,150.00$ 2,047,600.00$ 27,774,750.00$ (=) Appraised Value 17,927,900.00$ (-) Exempt 9,846,850.00$ (=) Taxable Real Property 230 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 29 Estimated Captured Value of Zone in Each Year of Existence “The estimated captured appraised value of the zone during each year of its existence” The captured appraised value of the TIRZ during each year of existence is shown in this table based upon a conservatively projected development schedule. The cumulative estimated captured value over the life of the Zone is $283,000,000. Actual value will depend upon implementation of the Medical District Master Plan, and changes from these projections will affect actual performance of the TIRZ. Estimated TIRZ Number 19 Revenue 100%83.94%Annual New New Non Res &Total New Captured COCS BC Total TIF Residential Multi Family Development Appraised Value Tax Revenue Tax Revenue Revenue Year 1 $0 $0 $0 -$ -$ -$ -$ Year 2 $3,000,000 $0 $3,000,000 3,000,000$ 12,921$ -$ 12,921$ Year 3 $5,000,000 $500,000 $5,500,000 8,500,000$ 36,608$ -$ 36,608$ Year 4 $8,000,000 $500,000 $8,500,000 17,000,000$ 73,217$ -$ 73,217$ Year 5 $9,000,000 $500,000 $9,500,000 26,500,000$ 114,132$ -$ 114,132$ Year 6 $5,000,000 $5,000,000 $10,000,000 36,500,000$ 157,201$ 148,595$ 305,796$ Year 7 $5,000,000 $10,000,000 $15,000,000 51,500,000$ 221,804$ 209,661$ 431,465$ Year 8 $5,000,000 $18,000,000 $23,000,000 74,500,000$ 320,862$ 303,296$ 624,158$ Year 9 $5,000,000 $18,000,000 $23,000,000 97,500,000$ 419,920$ 396,931$ 816,851$ Year 10 $5,000,000 $19,500,000 $24,500,000 122,000,000$ 525,438$ 496,673$ 1,022,111$ Year 11 $0 $10,000,000 $10,000,000 132,000,000$ 568,507$ 537,384$ 1,105,891$ Year 12 $0 $15,000,000 $15,000,000 147,000,000$ 633,110$ 598,450$ 1,231,560$ Year 13 $0 $15,000,000 $15,000,000 162,000,000$ 697,713$ 527,613$ 1,225,326$ Year 14 $0 $20,000,000 $20,000,000 182,000,000$ 783,850$ 592,751$ 1,376,601$ Year 15 $0 $20,000,000 $20,000,000 202,000,000$ 869,988$ 493,416$ 1,363,404$ Year 16 $0 $10,000,000 $10,000,000 212,000,000$ 913,056$ 517,843$ 1,430,899$ Year 17 $0 $15,000,000 $15,000,000 227,000,000$ 977,659$ 369,655$ 1,347,314$ Year 18 $0 $15,000,000 $15,000,000 242,000,000$ 1,042,263$ 394,082$ 1,436,344$ Year 19 $0 $20,000,000 $20,000,000 262,000,000$ 1,128,400$ 213,325$ 1,341,725$ Year 20 $0 $21,000,000 $21,000,000 283,000,000$ 1,218,844$ 230,424$ 1,449,268$ $50,000,000 $233,000,000 $283,000,000 10,715,493$ 6,030,099$ 16,745,591$ Brazos County 20 Years O&M Rate Years 1-5 0% Years 6-12 100% Years 13-14 80% Years 15-16 60% Years 17-18 40% Years 19-20 20% 231 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 30 Duration of Zone “The duration of the zone” The duration of the Zone is 20 years. The TIRZ will take effect on the date it is created. January 1, 2012 will be established as the base year and the TIRZ will terminate on December 31, 2032, or the date when all project costs are paid and all debt is retired, or by subsequent city ordinance terminating the Zone. 232 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 31 Appendix 233 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 32 Estimated TIRZ Number 19 Project Costs Estimated TIRZ Number 19 Project Costs Estimated Infrastructure Costs - Priority One Projects Lakeway - From Medical to Barron 3,030,000$ Barron - From Lakeway to Rock Prairie 6,345,000$ Bird Pond - From Rock Prairie to Lakeway 3,290,000$ Streets Subtotal 12,665,000$ Lick Creek Trunk Line Ph II 3,350,000$ Spring Creek - Baseline C 2,640,000$ Spring Creek - Baseline A 3,300,000$ Wastewater Subtotal 9,290,000$ Bird Pond Road – From Rock Prairie to SH6 360,000$ Barron Road – From Lakeway to Rock Prairie 405,000$ Lakeway – From Medical to Barron 225,000$ Barron Road – From SH 6 to Lakeway 150,000$ Water Subtotal 1,140,000$ Estimated Infrastructure Costs - Priority One Projects 23,095,000$ Estimated Infrastructure Costs - Priority Two Projects Rock Prairie Road East - From SH 6 to Bird Pond 3,302,000$ Unnamed - From Rock Prairie to Lakeway 3,367,000$ Lick Creek Trail Greenway 760,000$ Subtotal 7,429,000$ Estimated Infrastructure Costs - Priority Two Projects 7,429,000$ Total Estimated Infrastructure Costs 30,524,000$ Other Costs Developer Reimbursement Interest -$ Organizational Costs, Zone Creation and Administration 250,000$ Permitting and Related Fees 50,000$ Subtotal 300,000$ Total Estimated Costs 30,824,000$ 234 Tax Increment Reinvestment Zone Number 19 Preliminary Project Plan and Preliminary Financing Plan 33 Estimated TIRZ Number 19 Revenue Estimated TIRZ Number 19 Revenue100%83.94%AnnualNewNew Non Res &Total NewCapturedCOCSBCTotal TIFResidentialMulti FamilyDevelopmentAppraised ValueTax RevenueTax RevenueRevenueYear 1$0$0$0-$ -$ -$ -$ Year 2$3,000,000$0$3,000,0003,000,000$ 12,921$ -$ 12,921$ Year 3$5,000,000$500,000$5,500,0008,500,000$ 36,608$ -$ 36,608$ Year 4$8,000,000$500,000$8,500,00017,000,000$ 73,217$ -$ 73,217$ Year 5$9,000,000$500,000$9,500,00026,500,000$ 114,132$ -$ 114,132$ Year 6$5,000,000$5,000,000$10,000,00036,500,000$ 157,201$ 148,595$ 305,796$ Year 7$5,000,000$10,000,000$15,000,00051,500,000$ 221,804$ 209,661$ 431,465$ Year 8$5,000,000$18,000,000$23,000,00074,500,000$ 320,862$ 303,296$ 624,158$ Year 9$5,000,000$18,000,000$23,000,00097,500,000$ 419,920$ 396,931$ 816,851$ Year 10$5,000,000$19,500,000$24,500,000122,000,000$ 525,438$ 496,673$ 1,022,111$ Year 11$0$10,000,000$10,000,000132,000,000$ 568,507$ 537,384$ 1,105,891$ Year 12$0$15,000,000$15,000,000147,000,000$ 633,110$ 598,450$ 1,231,560$ Year 13$0$15,000,000$15,000,000162,000,000$ 697,713$ 527,613$ 1,225,326$ Year 14$0$20,000,000$20,000,000182,000,000$ 783,850$ 592,751$ 1,376,601$ Year 15$0$20,000,000$20,000,000202,000,000$ 869,988$ 493,416$ 1,363,404$ Year 16$0$10,000,000$10,000,000212,000,000$ 913,056$ 517,843$ 1,430,899$ Year 17$0$15,000,000$15,000,000227,000,000$ 977,659$ 369,655$ 1,347,314$ Year 18$0$15,000,000$15,000,000242,000,000$ 1,042,263$ 394,082$ 1,436,344$ Year 19$0$20,000,000$20,000,000262,000,000$ 1,128,400$ 213,325$ 1,341,725$ Year 20$0$21,000,000$21,000,000283,000,000$ 1,218,844$ 230,424$ 1,449,268$ $50,000,000$233,000,000$283,000,00010,715,493$ 6,030,099$ 16,745,591$ Brazos County 20 Years O&M RateYears 1-5 0%Years 6-12 100%Years 13-14 80%Years 15-16 60%Years 17-18 40%Years 19-20 20%235 Joe Orr, Inc. Surveyors & Engineers 2167 Post Oak Circle College Station, Texas 77845 (979) 693-2777 Tax Increment Reinvestment Zone area B -1301.76 acres (net) College Station, Texas December 2012 All that certain tract or parcel of land lying and being situated in the Thomas Caruthers league (abstract no. 9) and Robert Stevenson league (abstract no. 54) in College Station, Brazos County, Texas, generally being the area between State Highway no. 6 and Rock Prairie Road East, from Medical Avenue to William D. Fitch Parkway, save and except all of Lot 1, Rock Prairie Baptist Church (vol. 7312, pg. 207) lying south of the south right-of-way of Rock Prairie Road East, and the boundary being more particularly described as follows: Beginning at the intersection of the south right-of-way line of Rock Prairie Road East (60 feet south of surveyed centerline) and the east boundary of Block 7 of the Scott & White Healthcare Subdivision (vol. 10179, pg. 50), being the northeast comer of Lot 1, Block 7 of said subdivision, and from where City of College Station GPS control monument no. 9 bears S 82° 02' 35" E ­ 7016.5 feet. Thence N 2 ° 42' 34" W -120.04 feet along an extension of the said east boundary line of Block 7, to a point in the north right-of-way line of Rock Prairie Road East; Thence along the north right-of-way lines of Rock Prairie Road East (59.0 feet north of the surveyed centerline) as follows: S 86° 27' 34" E -1771.13 feet, S 85° 02' 05" E -1228.54 feet and S 84° 23' 02" E -10.29 feet to a right-of-way offset point in the common line of the Dale and Reba Conrad 26.25 acre tract (vol. 460, pg. 505) and the Flying Ace Ranch, Ltd. 26.245 acre tract (vol. 3767, pg.237); Thence S 24° 22' 52" W -1.58 feet along said common tract line to another offset point in the north right-of-way line of Rock Prairie Road East; Thence along the north right-of-way lines of Rock Prairie Road East (57.5 feet north of the surveyed centerline) as follows: S 84° 23' 02" E -606.93 feet, S 82° 02' 02" E -1453.40 feet, S 77° 01' 02" E -1052.59 feet, S 76° 28' 02" E -2876.58 feet, S 69° 53' 32" E -2812.30 feet to the beginning of a tangent curve to the right with a radius of 1057.50 feet, along said curve through a central angle of 11 ° 43' 34" to a point in the old northeast prescriptive right-of-way fenceline, and S 69° 17' 50" E -269.35 feet along said fenceline to the southeast line of the Hartzell Elkins 35.37 acre tract (vol. 1920, pg. 323) and northwest line of William D. Fitch Parkway; TIRZB Page 1 of4 236 Thence across Rock Prairie Road East as follows: S 42° 32' 30" W -32.00 feet to the south comer of said Elkins tract, called to be in the centerline of the road, S 19° 52' 04" W -36.01 feet to the east comer of the College Station Independent School District 44.535 acre tract (voL 8413, pg. 291) at the old right-of-way fence comer post, and S 41 ° 51' 48" W 170.08 feet along the southeast line of said C.S.I.S.D. tract and northwest line of Fitch Parkway to its intersection with the south right­ of-way chamfer of Rock Prairie Road East; Thence along the south right-of-way lines of Rock Prairie Road East (57.5 feet south of the surveyed centerline) as follows: N 5° 38' 11" W -67.56 feet, N 53° 08' 10" W -112.88 feet to the beginning of a tangent curve to the left with a radius of942.50 feet, along said curve through a central angle of 16° 45' 22" to the point of tangency, and N 69° 53' 32" W 551.37 feet to the common line of said C.S.I.S.D. tract and the Brazos Valley Solid Waste Management Agency, Inc. 76.00 acre Tract II (vol. 9857, pg. 186); Thence S 41 ° 51' 48" W -1842.68 feet along said common tract line to its southwest end in a northeast line of the RV.S.W.M.A. 179.99 acre Tract I; Thence S 48° 05' 47" E -941.57 feet, along the common line of said Tract I and the C.S.I.S.D. tract to their common comer in the northwest right-of-way of William D. Fitch Parkway; Thence S 41 ° 51' 48" W -1425.30 feet, along said northwest right-of-way line, to the south comer of the said B.V.S.W.M.A. Tract I; Thence S 41 ° 51' 48" W -1066.80 feet, continuing along said northwest right-of-way line of William D. Fitch Parkway, to the east common comer of the City of College Station 140.29 acre Tract One (vol. 3900, pg. 188) and Spring Meadows Phase I (vol. 5106, pg. 284); Thence along the southern boundaries of multiple City of College Station tracts (vol. 3900, pgs. 188 & 223, vol 5056, pg. 43) as follows: N 73° 00' 00" W -496.40 feet, S 51 ° 00' 00" W 175.05 feet, N 76° 00' 00" W -200.00 feet, S 41 ° 51' 44" W -51.88 feet, N 70° 46' 00" W -157.10 feet, S 41° 51' 44" W­ 262.67 feet, N 82° 55' 43" W -700.87 feet, S 41 ° 52' 26" W 650.00, N 48° 08' 02" W 412.47 feet, S 66° 47' 54" W 827.57 feet, N 47° 45' 25" W -129.90 feet, S 28° 59' 29" W -2.01 feet, S 41 ° 48' 43" W 336.13 feet, S 48° 45' 08" E 440.00 feet and S 53 ° 00'00" W -1304.90 feet to the northeast right-of-way line of State Highway no. 6; Thence along the northeast right-of-way lines of said highway as follows: N 49° 25' 00" W -438.00 feet, N 55° 07' 38" W -201.00 feet, N 49° 25' 00" W -751.78 feet to the west comer of the City of College Station 36.9 acre tract (vol. 4329, pg. 134), and N 49° 25' 00" W 1025.93 feet to the south comer of Barron Park Subdivision (vol. 939, pg.209); TIRZB Page 2 of4 237 Thence along the southeast, northeast and northwest lines of Lots 1 and 2 of said Barron Park Subdivision as follows: S 41 0 09' 46" E -1353.16 feet, N 49° 12' 46" W 88.68 feet to the south comer of the City of College Station 100.64 acre tract (vol. 6927, pg. 226), N 54° 01' 24" W -291.11 feet, N 64° 21' 21" W 117.03 feet, N 54° 53' 54" W -24.95 feet, N 53° 19' 32" W -113.87 feet, N 49° 26' 59" W -190.11 feet and S 41 ° 09' 38" W -1286.04 feet to the common comer of said Lot 2 and Lot 3 in the northeast right-of-way line of State Highway no. 6; Thence along the said northeast right-of-way lines of said highway as follows: N 47° 46' 18" W 537.86 feet to the southwest common comer of Lot 3 of said Barron Park Subdivision and that City of College Station 46.60 acre tract (vol. 3310, pg. 321), N 47° 46' 48" W -65.34 feet, N 55° 01' 37" W 201.00 feet, N 49° 25' 00" W -600.00 feet and N 44° 08' 33" W -147.79 feet to the southwest common comer of said 46.60 acre tract and the Barker Subdivision (vol. 5101, pg. 182); Thence N 38° 51' 07" E -279.95 feet along the southeast line of said Barker Subdivision to its east comer; Thence N 47° 42' 16" W 1053.70 feet along the northeast line of said Barker Subdivision and continuing along the northeast line of Cooper's Subdivision (vol. 4708, pg. 230) to its north comer, also being the east comer of the Harley Subdivision (voL 3961, pg. 236) and the south comer of that lliD Properties, LLC 2.77 acre Tract One (vol. 10144, pg. 203); Thence along the south, east and north lines of said lliD Properties tract as follows: N 42° 1 l' 04" E -175.00 feet, N 47° 42' 56" W -638.83 feet and S 72° 19' 02" W 202.14 feet to the northeast line of said Harley Subdivision and a southwest line of that M.D. Wheeler, Ltd. 71.52 acre Tract Two (voL 3007, pg. 341); Thence along the southwest lines of said Wheeler Tract Two and continuing along the southeast lines of the Wheeler 10.01 acre Tract One as follows: N 47° 42' 33" W 177.08 feet, N 46° 46' 09" W -304.24 feet, S 21° 21' 46" W 145.09 feet and S 41 °43' 32" W -194.25 feet, returning to the northeast right-of-way line of State Highway no. 6; Thence along the said highway northeast right-of-way lines as follows: N 42 0 21' 25" W -105.18 feet, N 36° 45' 17" W -383.87 feet, N 27° 43' 31" W -192.30 feet and N 34° 21' 26" W -55.00 feet to the southeast line of Block 4 ofthe said Scott & White Healthcare Subdivision; Thence along the east boundary lines of said Scott & White subdivision as follows: N 41° 15' 39" E -1224.44 feet, N 47° 31' 11" W -128.13 feet, N 50° 49' 32" E -930.60 feet and N 2° 42' 34" W -1023.83 feet to the Point of Beginning and containing 1308.51 acres of land more or less. TIRZB Page 3 of4 238 SAVE and EXCEPT the following tract: Beginning at the intersection of the south right-of-way line of Rock Prairie Road East (57.5 feet south of the surveyed centerline) and the west line of Lot 1 of Rock Prairie Baptist Church (vol. 7312, pg. 207), from where City of College Station GPS control monument no. 9 bears S 78° 01' 24" E -3240.0 feet. Thence S 82° 02' 02" E -414.05 feet along said south right-of-way line, parallel and 7.50 feet south of the north line of said Lot 1, to its intersection with the east line of said Lot 1; Thence S 20° 22' 54" E 600.82 feet along the east line of Lot 1 to its southeast comer; Thence N 82° 02' 02" W -699.33 feet along the south line of Lot 1 to its southwest comer; Thence N 7° 57' 58" E -528.77 feet along the west line of Lot 1 to the Point of Beginning and containing 6.76 acres ofland more or less. Leaving a net acreage for this described tract of 1301.76 acres more or less. Bearings are Texas State Plane, NAD-83(CORS) datum, based on City of College Station GPS control points and GPS observations. Volume and page numbers cited refer to the Brazos County public records. No monuments were set for this survey and found monuments are not cited. This document was prepared under 22 TAC §663.21 does not reflect the results of an on the ground survey and is not to be used to conveyor establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. See survey plat prepared with this description, dated December 2012. TIRZB Page 4 of4 239 240 26 College Station Medical District Master Plan 3 - Healthcare Trends & Demographics Healthcare Drivers Both in the College Station area and nationwide, healthcare is a large, strong and growing industry—in sharp contrast to most other sectors of the nation’s economy over the past three years. The fundamental drivers of this growth are: • The growing number of Americans who are over 65 years of age. • General population growth. • Affluent demographic groups around the globe that will travel if necessary to seek out the best healthcare and wellness facilities available. • National policy that has expanded the number of citizens covered by insurance. • Strong continued growth potential for the biosciences, pharmaceutical, medical devices, and related industries. • The growing awareness of the need and benefits for health and wellness programs. The Graying of America Throughout their lives—as America’s largest generation—baby boomers (born between 1946 and 1964) have made headlines. This continues today, as economists, demographers and forecasters attempt to discern the impacts that aging baby boomers will have on America in the 21st century. The impact will be broad and will include impacts to the workplace, public policy, retail and other facets of life. Figure 5 shows the dramatically changing shape of America’s population over the past half-century. Between 2010 and 2040, the US Census projects that the number of Americans over the age of 65 will double—from approximately 40 million today, to 80 million in 2040. Beginning in January 2011, and over the next 19 years, at least 10,000 baby boomers per day will turn 65. 241 27College Station Medical District Master Plan Figure 5. America’s Population: From Pyramid to Rectangle Source: US Bureau of Census, Leland Consulting Group Figure 6. Nationwide Household Growth, 2010 – 2020 (Millions) Source: Joint Center for Housing Studies at Harvard University, Leland Consulting Group Figure 6 underscores the scale of the growth in older households nationwide, while also illustrating some additional elements of the nation’s changing demographics. This data also portends a growing need for smaller dwelling units with a richer variety. As referenced above, the greatest amount of overall household growth during the coming decade will come from the baby boomer generation. Younger households, with heads-of-households younger than 40 years of age, will also grow—though at a lesser pace. In particular, households aged 25 to 34—a key demographic that drives apartment demand and development—will experience strong growth. The number of middle-age households, however, will decrease, because of the relatively small number of “Generation X” (born between the early to mid 1960s and the early 1980s) households compared to baby boomers. The decrease in this age group—which has the largest percentage of families and children— suggests that the single-family housing market will continue to stagnate for some time. However, there will be a growth in the number of minority-headed middle-age households. Seniors Drive Healthcare Demand America’s aging population will require more medical and healthcare services. Healthcare industry experts estimate that as much as 60 percent of all physician demand is driven by the 65-plus population. (Source: Medical Office Development Continues to Rise, Real Estate Finance, April 2008.) As Figure 7 shows, senior citizens require approximately three times more physicians, in all categories of medicine, compared with younger age groups. The demand for services in turn stimulates strong demand for healthcare and healthcare related real estate including hospitals, clinics, physician offices, outpatient centers, senior housing and related facilities. The specific need for these facilities is outlined in Chapter 4 – Development Program. 242 28 College Station Medical District Master Plan Figure 7. Physicians Required per 100,000 Population by Age Group Source: Department of Health and Human Services, Leland Consulting Group More than Healthcare—Lifestyle As the generation that came of age with rock and roll, increasing mobility and personal freedom, and amidst a seemingly limitless American economic expansion, baby boomers are unlikely to want to register at a retirement community and live out the rest of their days apart from the outside world. They will be seeking more from their communities than simply reliable healthcare. According to a 2007 survey, the following are some of the key features that baby boomers will look for in their future housing choices and communities (Source: “Who are you calling a senior?” Urban Land Magazine, January 2011): • Working will continue to be an important part of the boomer lifestyle. Fifty-five percent of boomers plan to continue to work at least part-time, making urban areas close to job opportunities and transportation more desirable. Urban workforces are better plugged into the new economy, a trend that only stands to strengthen as the U.S. information economy expands. • Arts and culture. Boomers overwhelmingly seek locations that offer travel, arts, hobbies, fitness, entertainment, dining, culture, shopping and gardening—raising the question, what are boomers not interested in? Surprisingly, they agree on their lack of interest in golf, tennis or a move to a warmer climate. • Of the boomers who are anticipating a move, only 20 percent are very interested in golf and/or warm locales, and plan to include those factors as part of their moving decision. • Eighty-six percent of baby boomers want to live in a typical community setting where people of all ages live; diversity of age and experience is critical to boomers. 243 29College Station Medical District Master Plan Information suggests that our definition of “senior housing” will change. Rather than seclusion and exclusivity, many boomers will want activity and connection—with their children, grandchildren, friends and communities. Along with outdoor pursuits, seniors will be looking for arts, culture, food, continuing education and lifelong learning and other pastimes. Further, while high quality healthcare is very important to senior citizens, they are looking for communities in which it is part of an overall puzzle, not the entire picture. Increase in Healthcare-Related Jobs Job growth in the United States has stagnated over the past several years. In the coming decades, job growth is expected to come from several well-defined industry segments, led overwhelmingly by healthcare and professional services. The Bureau of Labor Services (BLS) predicts that the healthcare industry will generate 3.2 million new jobs between 2008 and 2018. Therefore, the opportunity to accelerate the development of a medical district or cluster of institutions is a major economic development opportunity, since this industry sector is expected to be among the fastest growing in the country. Figures 9 and 10 show both the types and locations (by development type) of jobs expected to be created in the healthcare fields. This information is relevant because it is indicative of the types of development likely to take place in College Station, and because it shows the breadth of jobs that could be created within the City and region. The greatest demand, as shown in Figure 9, will be for those trained as nurses, physicians and surgeons, followed by many other professionals including social workers, lab technicians and physician assistants. These job types Figure 8. National Employment Growth by Industry Sector, 2008 – 2018 (thousands of jobs) Source: Bureau of Labor Services, Leland Consulting Group 244 30 College Station Medical District Master Plan in general offer relatively high wages and security compared with national averages. College Station’s educational institutions, led by Texas A&M’s Health Sciences Center, have already begun preparing to meet the need for a highly-educated healthcare workforce. Figure 10 shows that the locations where healthcare professionals will work is diverse and extends well beyond the traditional hospital, to physicians offices, senior housing communities, patient’s homes and clinics. Thus, a diverse range of real estate types will be needed within the medical district. Real Estate Development Outlook Real estate development was a major source of the national recession, and an industry that continues to suffer in its aftermath. Nationwide, most types of real estate development continue to be out-of-favor with investors due to dramatic overbuilding in the early part of the last decade, increased unemployment and stagnating wages, more caution on the part of consumers, increased scrutiny by lending managers, ratings agencies, and regulators and other related factors. These conditions are reflected in Figure 11, which shows some of the key findings from the Urban Land Institute’s (ULI) 2011 Emerging Trends in Real Estate, a leading annual real estate industry publication. While industry leaders are extremely pessimistic about most types of development—most development types are seen as nearly “abysmal”—development within several land uses is “fair”, that is, financeable and profitable under the right conditions. These include apartments, medical offices, senior housing and other types of affordable and infill housing—all Figure 9. Net New Healthcare Jobs by Title, 2008 – 2018 Source: BLS Guide to Healthcare Industry, 2010-11 Edition, Leland Consulting Group Figure 10. Net New Employment by Facility Type, 2008-2018 Source: BLS Guide to Healthcare Industry, 2010-11 Edition, Leland Consulting Group 245 31College Station Medical District Master Plan Figure 11. 2011 Real Estate Development Prospects Source: Urban Land Institute, Leland Consulting Group development types with strong long-term demand drivers that did not suffer from the same scale of dramatic overbuilding as single- family housing and other types did in the early 2000s. While these trends are important for the medical district, there are a number of qualifications to this information that should be recognized. The Emerging Trends analysis is nationwide and intended for the short term (multi-year outlook focusing on 2011). In fact, we know that every real estate market is highly localized, with its own demand drivers (economy, demographics, etc.) and players (existing development, developers, property owners, etc.). Many Texas cities and metropolitan areas have continued to create jobs and enjoy strong real estate markets through much of the last several years, thus avoiding the worst of the national real estate downturn. In addition, the medical district is intended to be a long-term vision with a long-term build out, and thus, the trends in effect in 2020 and beyond will be nearly as important as those for next year. However, with these caveats in mind, the land uses anticipated to be strong opportunities in 2011 should continue to maintain their top positions for much of the coming decade. Nationally, the medical office sector has outperformed most other commercial property types through the recession. Texas was expected to add 1.7 million square feet of medical office space in 2010, an increase of 2.5 percent. Asking rents are strong, averaging nearly $23 per square foot. (Source: Medical Office Research Report, Marcus & Millichap, Q3 and 4 2010) The City and its medical district development partners should take these uses into account when planning and implementing the master plan. Previously Uninsured Entering the Healthcare System In addition to the growth of the over-65 population and other demand drivers discussed above, the expansion of healthcare to a broader segment of the population, particularly through greater access to insurance, is expected to increase the need for hospitals and other medical real estate. 246 32 College Station Medical District Master Plan Healthcare and health insurance has, of course, been much in the news during the past two years. As of 2010, approximately 46 million Americans were estimated to be uninsured. The federal healthcare reform bill, signed into law in March 2010, is expected to lead to coverage for approximately 32 million, and thus an increase of approximately 64 million square feet of healthcare related real estate nationwide. (Source: “Can Healthcare Rescue Real Estate?” Meyer, Kenneth and Rob Grossman, Deloitte Consulting) Figure 12 shows the demographic groups that are currently least likely to carry insurance today, but would be covered in the future. Some of these groups— particularly Hispanics, households aged 18 – 29, and southern and western households—are also groups expected to grow quickly in the coming decades, and thus, their impact on healthcare demand will be amplified. Expanded coverage is generally expected to be neutral to positive for the financial health of medical service providers (although its impact on the health insurance industry may be negative). More patients will be able to pay fair-market rates for care through insurance, but insurers may be forced to reduce their co-payments across the board. However, fierce disagreements about the proper direction of federal and state policy continue. While it is likely that at least some of the insurance expansion put in place in 2010 will continue, it is also possible that the insurance expansions could be diminished or eliminated. This report assumes that at least some of the insurance expansion will stay in place, and that this in turn, will contribute to demand for healthcare related real estate. Additional Trends Affecting Healthcare Real Estate The following are additional trends affecting the development and operation of healthcare-related real estate within the state and across the nation. • Healthcare reform. New legislation will change healthcare delivery over the next several years, as uninsured people are brought into the system. Insurance companies will be challenged because those who can afford healthcare already have it. Those who have to be added typically cannot pay for services and will have to be supplemented in some way, which will probably mean lower reimbursements for providers. Therefore insurance companies and medical providers will have to look for ways to streamline costs. Many of the uninsured are young and healthy, 20 to 30 year olds. Others are extreme poverty situations, Figure 12. Demographic Characteristics of the Uninsured, 2009 Source: Gallup Well-Being Index, June 2009, Leland Consulting Group 247 33College Station Medical District Master Plan and will likely need assistance to pay for healthcare. Dental care will be especially critical to this group. • Insurance. The first step in the process will be primarily focused on insurance, getting the uninsured into an insurance group. • Delivery: The second step in the process will be delivery focused, streamlining costs in the system and providing care for an increased number of people. • Access and Affordability. Many HMOs will do well in the future because they control costs with an integrated approach. They are financially stable and will continue to grow. • Consolidation. Physicians will have to be part of a group, as most will not be able to stand alone because the costs of running a private office continues to increase significantly. • Streamline Costs. There will be even greater emphasis placed on reducing redundancies and streamlining the “flow” of patients (as measured by through-put metrics). For example, electronic healthcare records give access to a patient’s medical history, lab tests, etc., to all providers and specialists, thereby reducing repetitive tests and consolidating office visits. • Reimbursement. New members will be paying less than others will. Payments through Medicare/Medicaid barely cover the costs of administration; however, providers will at least get some (albeit low) reimbursement for patients that previously had to be covered for free in the ER. • Robotic surgery. Larger operating rooms will be required. • Insurers. Regional providers will be supporting their communities and will step up to provide care to the currently uninsured. National for- profit providers are looking for self-funded members where they can get higher profit margins. • Collaborative effort. Healthcare will be less of a hierarchical system. There will be more groups that deliver care through nurse practitioners and other support staff when possible, and fewer stand-alone physicians, mostly out of a necessity to reduce costs. • In-home monitoring. The advent and improvement of electrical monitoring technology allows more patients to be at home, and yet have distant professionals monitoring vital signs and looking for signs that they may need critical attention. • Military technology. The military has long been a leader in technological advances. Equipment and technology developed for use by the military will change the medical community. • Electronic ICU (EICU) critical care monitor. One facility can monitor multiple hospitals, similar to flight control at an airport monitoring multiple airlines. This could help lower costs for regional facilities in areas with several critical care or ICU units. • Streamline real estate holdings. Healthcare institutions will look for ways to cut costs including real estate holdings. Some hospital groups are currently looking to downsize administrative space. They are experimenting with alternate workspaces, such as shared stations, and allowing employees to work at home or otherwise off site. • Dental and Medical Synergy. Providers are recognizing the importance of dental health in a person’s overall health. More dental care providers will be needed in the future. • Information Systems. Information systems and electronic records streamline costs and improve care by being accessible to multiple providers. • eVisits. Physicians have started responding to patients through email, and can sometimes avoid an office visit. Industry experts expect to see a reduction in office visits, but this has not been the case yet. • Rural innovations. Providers are looking for ways to provide cost effective care to rural areas, where it has traditionally been difficult to attract physicians and other providers. At least one hospital group is testing a small 2,500 square foot clinic for rural areas. Another experiment is a mobile mammogram van, which, while it requires a low level of capital investment, is still costly to operate and requires “partner sites” for water, power and other services. Medical Districts and Urban Development Major healthcare institutions and related uses have clustered together in medical districts across the country. These districts are a result of deliberate and assertive action by healthcare providers, the public sector, and other stakeholders, who seek to provide their patients with more complete offerings for care; proximity to other experts, suppliers and complementary uses; and increased economic outcomes such as growth in jobs and tax bases. The following case studies summarize some of the key characteristics of medical corridors and districts nationwide. Research of medical districts across the nation indicates successful medical districts tend to be 248 34 College Station Medical District Master Plan located in larger communities with populations in excess of 500,000. However, one well established and notable example is Winston-Salem, NC. With a population of nearly 230,000, Winston-Salem is comparable to the combined population of College Station and Bryan. Tyler, Texas is also in the process of evaluating and planning a medical corridor with a population similar to College Station and Bryan, but it is too early to identify useful lessons. Communities of less than 50,000 are known to have established medical districts, with East St. Louis, IL being a good example. Attempts to identify a distinct set of success factors for medical districts is problematic given the variation in the size of host cities and the history of medical district development. Common Traits of Highly Successful Downtowns and Vibrant Urban Districts (Source: “Common Traits of Highly Successful Downtowns,” Gary Ferguson, Ithaca Downtown Partnership, 2005) 1. No single organizational model exists. While College Station can and should learn from other medical district models in similar locations, the approach adopted in College Station will be distinctive to College Station. 2. Multiple traffic generators are within short walking distances. The medical district cannot be a single-purpose district. Visitors to and residents of the district will demand a variety of accessible activities including health, wellness, and recreational services, as well as dining, retail and jobs. 3. Great urban districts are beloved by their citizenry. Pride in the medical district must be promoted and instilled internally to city residents. The district could be useful in establishing a distinct gathering place for meetings focused on medical issues and for patients and their friends and families in the course of access to comprehensive health care solutions. 4. Great downtowns and urban districts are able to overcome obstacles. This requires partnerships, shared resources, vision and patience. The premise of the medical district itself is the product of a shared vision and shared resources. This lesson needs to be extended throughout the district and the community. In the context of current and predicted economic reality, there is no viable alternative to a robust public-private partnership to get things done. 5. Great districts are walkable and have pedestrian scale. There must be interesting features that capture the attention of pedestrians while assuring personal safety. The variety of patrons and residents of medical district institutions will help to attract a variety of businesses, public art, aesthetically pleasing streetscapes and visual diversity. 6. Great urban districts have a commitment to mixed-use development. Developers and investors are urged to build for and attract a range of occupants, business types and institutional services. Virtually by definition, the medical district will itself be a form of a mixed-use development, so this theme can be applied more broadly, too. 7. There is broad public/private investment in the future of downtowns and urban districts. Partnerships are essential for the private, public and non-profit realms. The medical district can and must demonstrate that public/private investments can achieve significant results, and should include a variety of private interests (developers, etc.), public leadership and non- profits such as a district steering committee or business association. 8. Entertainment is the driving market segment. Revitalized downtowns increasingly serve as places for dining and recreation rather than simply centers for retail merchandise. The medical district can be a leader in attracting and sponsoring public events (fairs, concerts, art walks, “healthy foods” farmers market, etc.) that instill interest in the medical district, eventually leading to a wide range of investments. 9. There is a prevalence of strong, adjacent residential neighborhoods that are within walking distance of an urban district. Respecting the existing area neighborhoods while establishing new residential neighborhoods is essential for the success of the medical district. Access to and from housing in the neighborhoods must be redesigned to encourage pedestrians into the medical district. 10. Housing is either prevalent or underway. The medical district must add a substantial amount of housing in addition to improvements in transportation and pedestrian routes. Such housing should appeal to the workforce in the medical district as well as seniors, include affordable options, and be walkable neighborhoods. 11. Colleges and Universities help, but are not the sole answer. Many of the medical districts studied are university towns, but the research found that universities are not automatic keys 249 35College Station Medical District Master Plan to district vitality. However, research indicates that a strategic partnership with institutions of higher education is vital to medical districts, is an attraction for regional visitors and a source of well-trained labor for the entire area. Certainly this is true for all major medical providers in the College Station-Bryan market today. Texas A&M University is foundational to the development of a regionally competitive medical district. Additionally, the excellence of the College Station Independent School District is a major asset in the successful establishment of a medical district and is a key element in attracting medical professionals and organizations into the medical district. With these metrics in mind, a strategic model for establishment of a medical district in College Station and the broader community that leverages the characteristics of its existing strengths can be designed. Such a model, however, must be unique to College Station and must be supported by those who use or would use the medical district more actively. National Medical Corridors and Districts: Key Characteristics and Tenants Successful medical corridors and districts have been established in a wide spectrum of urban areas. Table 1 provides a sample of some of these districts. Table 1. Successful Medical Districts, University Affiliation and Population Size Source: Leland Consulting Group, US Census Community University Affiliation Population, 2010 Dallas, TX University of Texas at Dallas 6,500,000 Houston, TX At least 15 Health related University Organizations 6,100,000 Philadelphia, PA University of Pennsylvania 6,100,000 Miami, FL University of Miami 5,547,000 Boston, MA Harvard Medical School 4,500,000 San Antonio, TX University of Texas at San Antonio 2,140,000 Oklahoma City, OK University of Oklahoma 1,253,000 New Orleans, LA Tulane University 1,236,000 Memphis, TN University of Tennessee 647,000 Aurora, CO University of Colorado Denver Anschutz Campus, VA 325,000 Birmingham, AL Univerity of Alabama 212,000 Tyler, TX University of Texas at Tyler, Texas College 210,000 Englewood, CO University of Colorado Denver 32,532 East St. Louis, IL University of Illinois 27,000 Bryn Mawr, PA Bryn Mawr College (Pre-Med)21,000 Approaches to urban revitalization success must be multifaceted, multidisciplinary, and holistic. Keep the puzzle pieces together! Source: Leland Consulting Group 250 36 College Station Medical District Master Plan Stemmons Corridor Southwest Medical District Study Area Dallas, Texas • Plan adopted 2010 (to be implemented through 2013). • TIF district. • 100,000 employees. • 5,000 businesses. • Biotechnology and medical services – key targeted industries. • Key healthcare providers and tenants: • UT Southwestern Medical Center. • Parkland Health & Hospital System. • Children’s Medical Center. • Texas Woman’s University School of Nursing. • 40 Hotels (Stemmons Corridor). • Planned expansion of clinical care and new research buildings. • Planned 350,000 SF biotech and life science research park. Source: City of Dallas Texas Research Park - San Antonio, Texas • UT - Institute for Biotechnology. • UT - Institute for Longevity and Aging. • Biomanufacturing firms. • TEKSA Innovations Corporation. Source: Urban Land Institute Special Report: Office/ Medical Development, 2008 Texas Medical Center Houston, Texas • World’s largest medical center. • 93,500 employees. • 1000 acres. • 14 hospitals and two specialized patient facilities. • 160,000 daily visitors. • 69,000 students, 5,000 of whom are international students. • 5.6 million annual patient visits. • 50-year Master Plan completed in 2006. • $7.1 billion in building and infrastructure investments approved between 2010-2014. • Annual Economic Impact – $14 billion. • Annual Research Expenditures $1.2 billion. Source: Texas Medical District 251 37College Station Medical District Master Plan 10th Street Medical Business District Oklahoma City, Oklahoma • Recommended Development Program, 2006 to 2020: • Office: 450,000 to 800,000 SF. • Retail: 130,000 to 175,000 SF, groceries, restaurants, bars, drug stores, household goods, gas stations, apparel, day care, bars. • Mid-size hotel: 200-250 rooms. • Residential: 1,500 to 2,000 units (average of 1,200 SF per unit). Source: 10th Street Medical Business District Development Strategy, 2006 Five Points Medical District Birmingham, Alabama Key healthcare providers: • University of Alabama Hospital – 908 beds. • HealthSouth Medical Center – 73 beds. • HealthSouth Lakeshore – 100 beds. • Callahan Eye Foundation Hospital – 20 beds. • Children’s Hospital Of Alabama – 310 beds. • Cooper Green Mercy Hosp – 141 beds. • Veterans Affairs Medical Center – 122 beds. • St. Vincent’s Hospital – 372 beds. • Brookwood Medical Center – 602 beds. • Princeton Baptist Medical Center – 368. • Birmingham Baptist Medical Center – 375 beds. • Select Specialty Hospital – 38 beds. • Hill Crest Behavioral – 80 beds. Source: health.usnews.com Sugarland, Texas Key healthcare providers Key healthcare providers: • Memorial Herman Sugar Land Hospital – 77 beds. • Triumph Hospital Southwest – 170 beds. • Sugar Land Surgical Hospital – 6 beds. • Methodist Sugar Land Hospital – 127 beds. Source: health.usnews.com 252 38 College Station Medical District Master Plan Figure 13. College Station and the Golden Triangle Source: ESRI, Leland Consulting Group 52,456 67,890 81,848 92,553 103,257 113,961 184,885 195,410 208,258 221,258 233,546 0 50,000 100,000 150,000 200,000 250,000 1990 2000 2005 2010 2015 2020PopulationPopulation Projections City of College Station College Station-Bryan MSA Figure 14. Population Forecasts for College Station and Metropolitian Area Source: City of College Station (linear growth projection), Texas State Research Center, Leland Consulting Group College Station: Local Demographics and Healthcare Context The population and demographic trends at work in the City of College Station and its surrounding areas reflect the conditions under which a concentrated medical district would be expected to thrive. College Station is part of the College Station-Bryan Metropolitan Statistical Area (MSA, a US Census designation), and at a larger geographic scale, Texas’ “golden triangle,” the super-region framed by three large metropolitan areas: Dallas-Fort Worth, Houston, and San Antonio. The Golden Triangle contains most of the economic engines that are powering the state’s economy and population growth. Because of its location within the triangle and its own unique attributes, College Station is also experiencing rapid growth. As Figure 15 shows, the College Station MSA grew nearly 24 percent between 2000 and 2010, the sixth fastest rate in a fast-growing state. The City itself has grown dramatically, from a population of just over 52,000 in 1990, to an estimated 113,000 by the year 2020. All five of the major metropolitan areas in the Golden Triangle grew faster than the state average in the last decade. This population growth will surely drive demand for medical and healthcare services. The market area for the medical district, however, extends beyond the City’s boundaries and even the officially designated metropolitan area. A market area is the area from which most patients and customers will come from and within which most of the medical district’s competition will be found. The estimated market area for the medical district is approximately a 50-mile radius from the City (also shown in Figure 13). Those who live fewer than 50 miles from College Station will tend to come here for medical services, assuming that the medical district is competitive in terms of quality of care; those who live further away will tend to go to the city center that they are closest to. Obviously a number of intangible factors— quality of care, availability of specialists, insurance coverage, patients’ familiarity with providers—have a large impact on people’s choice of providers, so this market area is an approximate rather than exact area. 253 39College Station Medical District Master Plan 23.7% 20.6% 0%5%10%15%20% 25%30%35% 40% Austin-Round Rock-San Marcos McAllen-Edinburg-Mission Laredo Houston-Sugar Land-Baytown San Antonio-New Braunfels College Station-Bryan Dallas-Fort Worth-Arlington Killeen-Temple-Fort Hood Brownsville-Harlingen State of Texas Tyler Midland El Paso Lubbock Odessa Longview Amarillo Waco Sherman-Denison Corpus Christi San Angelo Texarkana Victoria Abilene Beaumont-Port Arthur Wichita Falls Growth Rate 2000-2010 Figure 15. Growth Rate of Texas Metropolitan Areas, 2000 - 2010 Source: Texas State Data Center, Leland Consulting Group Senior Population and “Old Aggies” As discussed above, the other primary driver of healthcare demand beyond raw population growth is the rate of growth amongst the senior population. Here, as well, demographic trends point towards increasing demand for medical services. Table 2 shows that, while there are 4,000 residents of the City of College Station who were 65 or older in 2010, 62,000 residents (or 12 percent) of the 50-mile market area are seniors. This is a far larger group, in terms of share and total numbers, than the City’s population alone, and indicates a large population of aging seniors. This group is also growing, and will represent 28 percent (nearly 12,000 new seniors) of the total population growth in the market area in the next five years. The consultant team’s research and interviews support the story told by the Census data. Those interviwed consistently stated that “lots of ‘Old Ags’ are moving back to town” to reconnect with their old friends and community. Old Ags are certainly potential patrons for the medical services in the medical district, as well as the residential and retail components. A story from 2007 in The Eagle stated that, “Many senior citizens consider Brazos County a retirement haven because of Texas A&M, the region’s medical facilities and its friendliness. And Texas overall—partly because of inexpensive housing relative to many other states and partly because it has no state income tax—is popular with retirees, ranking No.2 among the 50 states as a retirement destination. The Kovars, both 63, had a long history with Texas and Brazos County. They met at A&M, where Gary Kovar was a guard on the football team. They married while still in school, and when he retired after 35 years with Amoco Chemical Co., they moved back to Aggieland.” Retirees like Bryan-College Station due to A&M, healthcare, social life.” The Eagle, December 16, 2007. 254 40 College Station Medical District Master Plan Another important demographic feature of the College Station area is the tremendous number of young, college age residents. As Table 2 shows, approximately 48 percent of the City’s population is between the ages of 0 and 24, while this percentage is only 40 percent of the 50-mile market area. The percentage of college age residents in College Station is said to be among the highest in the nation, and is certainly one of the highest in Texas. Historically, this high percentage of younger residents has been one of the reasons that the number of hospitals and healthcare-related uses has been lower than average on a per-capita basis—younger people need less care than older people. However, the percentage of the population that is over 65 is expected to grow over time, reaching 13 percent in the City by 2030, as opposed to the eight percent of the population that was over 65 in 2010. The 50 mile market area is expected to have even more seniors, reaching 17 percent by 2030. As is happening nationally, this regional shift to an older population will create more demand for healthcare. Housing Demand Based on existing and projected demographic trends, there is expected to be demand for approximately 10,100 new housing units of all types within the College Station-Bryan MSA. This amount of demand will help to gauge the potential demand for housing in the medical district, outlined in the Development Program. This is based on population growth of over 25,000 in the MSA, and the City’s expected average housing size of 2.5. This is a rough projection of demand, since housing can be provided in many forms, ranging from student housing, to single-family housing to a variety of senior housing. These housing types are explored in greater depth in Chapter 4 – Development Program. As shown in Figure 16, College Station grew at a faster rate than Bryan over the past decade and is expected to continue this trend. Therefore, it is reasonable to assume that College Station will capture a greater share of the projected housing demand for the College-Station-Bryan MSA than will the City of Bryan. College Station Healthcare Environment College Station and Bryan already serve as the focal point for healthcare services within the market area. There are two large-scale, established general medical Table 2. Population of College Station and 50-Mile Market Area by Age Group Source: US Census, ESRI, Leland Consulting Group 0 20000 40000 60000 80000 100000 Bryan College Station Population Growth of College Station and Bryan 2000 2010 38% growth rate 16% growth rate Figure 16. Growth Rate and Population of College Station and Bryan 2000-2010 - Source: Census Bureau, Leland Consulting Group 255 41College Station Medical District Master Plan hospitals, College Station Medical Center (The Med) and St. Joseph Regional Health Center (Bryan). The new Scott & White Hospital is currently under construction at the intersection of SH 6 and Rock Prairie Road in College Station. In addition, two new healthcare-related institutions are expected to grow rapidly in the College Station-Bryan area: Texas A&M University’s Health Science Center (HSC) and Research Park. Supplementing these major facilities and institutions are an array of physician’s offices, pharmacies and small local clinics that serve nearby neighborhoods. A medical district has already begun to take shape in the vicinity of SH 6 and Rock Prairie Road. This has long been the site of The Med (approximately 150 beds), which will be joined by the new Scott & White Hospital (projected capacity of 143 beds upon completion). The Med, with 217 active physicians, was founded in 1931 as an acute care hospital and moved from Bryan to College Station in 1997. Through construction of additional floors on the existing building, The Med could accommodate as many as 250 total beds. The two hospitals form the nucleus of a medical cluster, or medical district, and are complemented by a range of other “supporting uses” such as medical office buildings, pharmacies and physician’s offices. In their own way, the existing retail, housing and parks are also supporting uses. St. Joseph Regional Health Center’s main campus in Bryan has 310 beds. Their outpatient facility in College Station is located on 27 acres at William D. Fitch Parkway and SH 6. The St. Joseph outpatient facility is outside the study area, however, St. Joseph is an important institution and part of the College Station medical community. In 2010, approximately, 24,000 College Station residents chose St. Joseph for their outpatient care while 2,951 residents used St. Joseph for inpatient care. The Physicians Centre Hospital is also located in Bryan, but has only 16 beds and is not considered a full service hospital. The medical facilities that are currently on the ground or under construction show that the private market is already confident that a medical district is feasible. Thus, the questions for the future really revolve around not if the medical district will happen, but how and at what scale. In other words, what are the scales of medical and related non-medical uses, the time frame for development, qualities of the physical environment and how can new facilities be introduced without creating excessive competition for existing providers? In planning for future medical facility expansions and additions, the College Station medical community and the City should carefully review the area’s competitive position vis-à-vis other areas— particularly larger metro areas such as Houston and Austin. The City’s healthcare institutions can and should be able to offer general hospital/medical and acute care facilities that are every bit as good as those in larger metro areas. However, in some specialty care areas—for example, oncology, cardiology and gastroenterology—local institutions will have trouble competing directly and should offer these services through strategic relationships with larger, regional specialty healthcare providers. This dynamic is explained in greater detail in Chapter 4 -Development Program. 256 42 College Station Medical District Master Plan 4 - Development Program A development program is a narrative description of how a property or area should be developed. The program serves as a guide to the physical planners (land planners, landscape architects, architects and engineers) who are responsible for translating the narrative program into a physical land use, transportation and utility plan. The development program describes an overall identity for the project including theme, image and attributes to be merchandised; the overall objective is to capture target markets, maintain economically viable conditions, and create a positive, long-term identity for the project. Product and amenity opportunities are based on the research and analysis of markets for the project—all of which should be simultaneously pursued for the purpose of accelerating project sales and mitigating absorption risk. Programming includes identifying and formulating alternative concepts for the master plan, including: • Development theme and character. • Timing and phasing. This development program is intended for an approximately 10- to 20-year period. However, some uses will develop before others. • Land uses by type, including a wide range of medical and non- medical components. • Land use mix. • Number, type and land (acreage) needs of the various land uses. • Likely amounts of medical and commercial uses (measured in square feet) and housing (measured in dwelling units). • Recommended amenities. Forecasting in the Fog: The Past and the “New Normal” Making accurate long-term development projections has never been easy. But it is arguably more difficult now than ever before, given the dramatic changes to the nation’s economy and real estate markets that have taken place over the past four years, and the ripple effect this has had on consumer preferences and demand for housing, retail space and other components of the built landscape. 257 43College Station Medical District Master Plan Figure 17. Medical District with Land Use Concentrations Source: Leland Consulting Group, SRA, Townscape Figure 18. Forecasting in the Fog Source: Leland Consulting Group Figure 18 illustrates the difficulty of “forecasting in the fog:” pre-crash data shows a red-hot market in which all real estate products—ranging from single-family homes to commercial real estate— were funded and leased quickly, while post-crash data shows just the opposite. Neither can be relied upon to accurately predict long-term trends, and thus, determining the precise pace or timing of redevelopment in College Station and most other markets is very difficult. The future market realities are almost certainly somewhere between the 2007 peak and the current trough. This principle is likely to be true with respect to measurements such as annual housing starts, commercial real estate absorption, rent and lease rates and other metrics throughout the College Station market area. However, the downturn and eventual upturn— expected in 2011, 2012 or potentially later—will be “lumpy”. Traditional lending institutions are hesitant to make loans to developers, and when they do, the parameters of the loan are often prohibitive. Many households have seen serious wealth depletion, as much of the household worth depends on the value of single-family homes, access to home equity loans, retirement accounts and other funds related to the value of financial markets. No one knows when these forces will return to a state of normalcy and exactly what the “new normal” will be. Some markets—defined geographically or by real estate product type—will fare much better than others. For example, the apartment market is in most cases seen as a more desirable area for investment at the moment than single-family homes—which are in most areas overbuilt. Similarly, in retail, some stores will fare better than others or even be more profitable than before. Sales among fast casual restaurants are up. Movie theaters are generally doing well as consumers redefine leisure as dinner and a movie rather than a week long vacation abroad. In summary, College Station should take a long view of real estate redevelopment, hope for the best but also plan to be patient with the still-struggling economy. Successful Programs are Market-Driven The master plan, which can expect successful implementation, must address, to the extent possible, the goals of the City. The additional and equally rigorous layer of considerations that impact the program consists of: 258 44 College Station Medical District Master Plan • Market willingness to seek out medical services, housing, shopping or leisure activities, or other products and experiences in the physical environment to be developed. • Market capacity to pay either through equity, debt service, rents, home ownership or commercial rents. • Lending and loan underwriting policy and criteria. • Achieving reasonable levels of profitability commensurate with risk to attract private development capital to the study area. • Establishing an arrangement of land uses which can be successfully introduced in the marketplace with sufficient velocity (rate of sales) to generate revenues adequate to cover or partially cover the cost of infrastructure both on-site and off-site. Hence, all development strategies must thoughtfully consider the needs of the potential employers, residents, and shoppers who will come to the district. These considerations include price, size, quality levels, image, quality of life and other factors. Development Identity and Character Preparing a development program for the medical district begins with establishing a statement of the recommended overall identity and character for the project. This statement of the project should be adopted by the medical district leadership and organization. It is analogous to the mission statement in a business plan. It is the guiding statement against which later program details can be “tested” for compliance in support of the overall theme. The recommended program is for a medical district and mixed-use community, as illustrated in the following graphic. Exceptional Medical Care This is the key differentiating feature of the district and the set of uses that will drive its success. Exceptional medical care currently brings substantial numbers of patients and employees to the district every year, and will continue to do so in greater numbers in the future. These visitors then make up the market for the other uses and activities in the medical district, including the “village center” retail, office space, housing and parks. It is absolutely critical to the long-term success of the district that residents of the College Station market area believe in the quality of care and receive the best care possible. The land use components of medical care include hospitals, specialty and subspecialty clinics (such as children’s medicine, oncology, mental health, etc.), medical office buildings, pharmacies and medical suppliers, research and development, and education and university related uses. Not all of these uses must be on site at all times. For example, The Med currently has relationships with certain specialty doctors who are only in College Station on a part- time basis, since the market is not big enough to sustain those who focus on specific and relatively rare procedures. Thus, some services can be offered through outsourcing or even off-site relationships. A Special Place and Destination The Texas A&M campus is one example of a special place: A place that people return to time and again to enjoy experiences with friends and family, that evokes memories, emotion and attachment. On the Texas A&M campus, experiences include sporting events, reunions, military services, etc. The medical district will of course have a different look, feel, and identity than the A&M campus, but it should establish a sense of place and, in doing so, create a means by which it can differentiate itself from its competition. This will help it to attract patients, doctors and residents because of a natural desire to spend time in high-quality environments. Research completed by Texas A&M and the Center for Health Design shows that quality of place matters. According to one in a series of articles and presentations authored by professor Leonard L. Berry of Texas A&M and his colleagues: “The buildings in which customers receive services are inherently part of the service experience…The evidence indicates that the one-time incremental costs of designing and building optimal facilities can be quickly repaid through operational savings and increased revenue and result in substantial, measureable, and sustainable financial benefits.” (“The Business Center Case for Better Buildings,” Leonard L. Berry et. al., Healthcare Financial Management, November 2004.) A pathway on the A&M campus. 259 45College Station Medical District Master Plan Figure 19. Medical and Supporting Uses Source: Leland Consulting Group This analysis is consistent with real estate research completed on the relationship between the quality of the built environment and the price that customers or residents will pay to be there. (Source: “The Business Case for Better Buildings,” Leonard L. Berry et. al., Healthcare Financial Management, November 2004. See Valuing the New Urbanism: The Impact of the New Urbanism on Prices of Single-Family Homes, Eppli, Mark J. et al, Urban Land Institute, 1999, and Back to the Future: The Need for Patient Equity in Real Estate Development Finance, Brookings Institution, 2007. The capital costs of high-quality development are also usually higher, but as these analyses show, this is offset by higher revenues when implemented properly) “Place making” can be achieved through a “village center” or active central place for commerce and social functions, design of signage, gateways and entrances, streets and sidewalks, street lighting, common architectural themes, consistent imagery, graphic design and other features. Holistic Wellness The medical district has the opportunity to incorporate aspects of health and healthcare that extend beyond the walls of its hospitals and clinics— through health and fitness clubs, walking and biking paths, restaurants that emphasize healthy eating, ball fields, yoga studios, plazas, open spaces and many other features. An example is The Med’s current partnership with Aerofit Health and Fitness that will result in a new fitness center just south of Rock Prairie Road. The American public is, today, broadly interested in a definition of health and well-being that is much broader than medicine alone. By incorporating and integrating health and wellness broadly into the medical district, and by demonstrating this approach through the area’s physical design, the City and its partners can enhance the district’s brand, improve people’s connection to the place, and increase revenues and economic viability. Great Neighborhoods: Housing Options for Seniors, Medical Professionals and Families Two key groups—senior citizens and medical professionals—will have a distinct interest in living close to the medical district. Seniors have a demonstrated propensity for living in close proximity to quality medical care, and people tend to seek housing that is within easy access to their jobs. This suggests strong demand within the medical district for both senior housing—which includes a “continuum of care” that ranges from independent living, to assisted living, to skilled nursing facilities—and a wide range of housing for medical professionals. The types of housing sought by medical professionals will also be very broad, and may range from large-lot, single-family homes, to urban-style condominiums within walking distance of the hospitals. Making these housing options available will enhance the value proposition of the medical district and its potential for long-term success. The medical facilities will benefit from a consistent base of patients, and find it easier to attract the best doctors, nurses and technicians if great neighborhoods are located nearby. Finally, this population will also help the village center retail component to thrive. Medical and Supporting Uses As shown in Figure 19, the medical district can be generally divided into major use areas: an existing and expanded medical core and a large area of supporting uses. However, both areas—core and periphery—will include a mix of medical and non- medical uses. The types and locations of these uses are summarized in Figure 19. Land Available for Development The study area for the master plan is several hundred acres in size. This total area includes some areas that will remain as-is for many decades, areas that are vacant and are expected to develop and some smaller areas that are already developed but are expected to redevelop within this development program’s time frame. 260 46 College Station Medical District Master Plan Table 3. Gross and Net Developable Areas (based on intial study area) Source: Leland Consulting Group As Table 3 shows, there are approximately 534 net developable acres within the intial study area that can be reasonably expected to develop within the next decade or beyond. Because of the inherent uncertainty associated with large scale, long-term development (see the “Forecasting in the Fog” section) this area could build out in more or less time. A number of considerations and inputs influence this land development analysis: East and West sides. A considerable amount of land is currently vacant—most of it on the east side of SH 6. The east side of SH 6 is best suited for large-scale development, especially for residential communities; however, significant amounts of medical and supporting commercial uses will be clustered along Rock Prairie Road, particularly close to SH 6. The west side of SH 6 will also accommodate a mix of uses; however, these are more likely to be “infill” opportunities. Because of their close proximity to The Med and other established uses, there is a more immediate opportunity to create an urban core or village center for the medical district on the west side. Right of Way. The amount of land needed for right-of- way (ROW), open space and other public areas varies considerably, particularly in contrasting “developable pads” that are already surrounded by urban streets (west side) versus large parcels that still require a network of local streets to be built through them (east side). Thus, on the east side, a greater percentage of the total area must be deducted for ROW and public space. Expansion on The Med and Scott & White properties. The Med and Scott & White hospitals have additional capacity to expand their services on their existing properties—particularly Scott & White, whose primary property is approximately 99 acres. Some new development (to be planned and completed by the hospitals themselves) can take place here. Constrained/Public Uses. Some properties are considered undevelopable (parkland) or are considered undevelopable pending further site- specific analysis (landfills). Redevelopment. Some properties—particularly those that are not highly improved or that experience large increases in visibility or traffic due to the expansion of the medical district —are likely to redevelop. Development Program Table 4 shows the development program for the medical district at full build out, including land uses by area, density and development quantity. The time frame for this build out is generally 10 to 20 years, with the speed of absorption to be determined by a number of factors including the national and local economies, demographic patterns such as the in- migration rate of seniors to College Station, timing of regulatory approvals, lending environment and other conditions. Medical and Healthcare Uses Hospitals As shown in Table 5 and Figure 20 there is a significant undersupply of hospital facilities (measured in hospital beds and physicians) in the College Station MSA in the longer term. While this undersupply is only modest from the perspectives of the short term of the College Station- Bryan MSA alone, it becomes quite significant when viewed from the perspective of the entire 50-mile market area and over the long term. (For the purposes 261 47College Station Medical District Master Plan of this report, the short term is considered to be the next five years, medium term from five to 10 years, and long term from 10 to 20 years.) This is both an important community issue for the area and a significant market opportunity. As of 2013, there will be approximately 636 operating hospital beds within College Station and Bryan, including the Scott & White Hospital now under construction and an expansion underway at the Med. (Source: The number of hospital beds projected is as follows: College Station Medical Center, 167; Scott &White, 143; St. Jospeh, 310; Physician Centre Hospital, 16.) Presently, the existing hospital bed supply is operating at or near full capacity even as some residents look elsewhere for their medical needs, especially in specialty care. As the population continues to grow and age, this supply will become more obviously inadequate just as the supply of quality senior housing is becoming more obviously inadequate. The need for future medical facilities can be assessed in several ways and should take into account several factors. The primary factors influencing a projection of medical services include population size, industry standard measures of services needed, age of the population and presence of other medical demand- drivers, and other market characteristics. Two frequently used metrics for forecasting hospital and medical facility demand are hospital beds and physicians per 10,000 residents of a given area. The current national average is 31 hospital beds and 27 physicians for each 10,000 residents. (Source: Kaiser Family Foundation, www.globalhealthfacts. org/data/topic/map.aspx?ind=78.) On average, the Texas healthcare industry has built somewhat fewer beds per 10,000 residents, but the standard varies significantly between healthcare-intensive cities and rural areas where healthcare services are less accessible. The Houston and San Antonio regions have approximately 45 beds per 10,000 residents and are known nationally and internationally for the reputation of their respective medical districts. Given the evolving characteristics of the College Station MSA and market area, an increase in medical services and concomitant bed-count can be viewed as both reasonable and responsible public policy. Table 4. Medical District Development Program Source: Leland Consulting Group. Some figures may not sum correctly due to rounding (based on intial study area) 262 48 College Station Medical District Master Plan As explained in Chapter 3, age is a major factor that has a very significant impact on the demand for medical care and hospital facilities. Senior citizens over the age of 65 require more than three times the number of physicians as those in the 25 to 44 age group. The percentage of senior citizens within the market area is anticipated to nearly double from 62,000 today to 120,000 in 2030. As the market area’s population ages in keeping with national trends, and there is no rational basis for supposing College Station can or will avoid these trends, demand for hospitals and healthcare services will grow significantly. College Station’s ratio of hospital beds has clearly been low historically and comparatively due to the large percentage of college- age residents. And while this will, of course, continue to be an important part of the region’s demographic character, hospital demand should move back into line with state and national averages in the coming decades. The projections in Table 5 and Figure 20 were developed based on the factors outlined above: the market area’s growing and aging population, and industry standards for required hospital facilities. The need for hospital facilities has been adjusted to account for the ages of populations served. This analysis shows a gap of almost 700 beds in 2015, and more than 1,000 beds by 2030. While significant new facilities will be needed throughout College Station and Bryan, and in the medical district specifically, much of the growth within the medical district should be able to take place on property already controlled by the Med and Scott & White. Table 5. Senior Housing Demand in the Market Area and Medical District Source: Department of Health and Human Services, US Census, Leland Consulting Group Figure 20. Elderly Living in the Community, by Type of Care Source: Long Term Care in America, National Commission for Long Term Care, 1999; Leland Consulting Group 263 49College Station Medical District Master Plan Medical Office Building Medical office buildings (MOBs) typically include routine and preventative care facilities such as physician’s offices, dentists, opthamologists and various other providers. MOBs have many of the same locational requirements as typical office buildings such as easy access for clients; proximity to support services such as food, hotels, labs and medical suppliers; ample parking; and access to intra- and inter-regional transportation connections such as freeways, high capacity transit and airports. However, MOBs usually require a higher degree of technology and services, such as advanced computer systems, greater number of plumbing fixtures,and a higher standard of air quality and purification than typical office buildings. Specialty Healthcare Specialty healthcare includes specialists in cardiology, oncology, OBGYN, mental health and other fields that cannot be completely addressed within a single general-care hospital. These specialty services can be offered in multi-tenant or single- tenant clinics, or on a contract basis within the existing hospitals. In addition, medical hardware suppliers and other support facilities are likely to locate in the medical district in the future. Research and Development Research and Development (R&D) facilities can be comparable to office buildings, flexible warehouses, or industrial properties depending upon the type of research being conducted. Often they need both types of facilities: an office in which to develop and market concepts and a lab or production room to conduct experiments and fabricate prototypes. Like MOBs they require a greater level of technology and often have higher energy and water consumption. They also require a greater level of security, as products may be in a highly secretive phase of development. R&D facilities benefit from proximity to universities and large research hospitals for prospective employees as ideas spin off from research conducted at these institutions. 264 50 College Station Medical District Master Plan Retail / Village Center A village center with a strong retail component could thrive within the medical district. Retail provides activity and amenities to the residents, employees and visitors of the medical district. Retail is the “theater” that will entertain visitors and create a sense of place, making the medical district more desirable for residents, visitors and employees of the area. Requirements for Success: • Visibility. Thousands of customers must pass and see the site on a daily basis. Daily traffic volumes of approximately 20,000 are desirable for most national retailers. SH 6 running through the medical district has daily traffic counts of 60,000 at the intersection of Rock Prairie Road. • Accessibility. Must be very easy to get to; daily- shopping or convenience retail should be on the “way home” (right) side of the street. • Central location vis-a-vis target markets. For example, grocery anchored centers should be within approximately one mile of 10,000 residents. • Manageable competitive environment. Most retailers will avoid an area if competitors are already located there. • Demographic match. Retailers choose sites located near their “target market” customers. • Anchor tenants. Retail developments are often “anchored” by one tenant (for example, a high- profile department store) who then attracts other tenants. • Sense of place, safety, cleanliness. • Contiguity. Urban retail must be continuous, or many shoppers will stop and turn back. • Parking capacity. Hotel Experience from other medical corridors shows that additional hotels and conference space will be needed in this medical district to accommodate visiting families, patients, and doctors. Requirements for Success: • Visitor amenities and attractions. • Easy access to major thoroughfares. • Co-location with other hotels. • Visibility. • Parking capacity. Office Office uses would be an excellent addition to the medical district as they would provide daytime activity to the area and are compatible with the other uses being proposed for the area. Requirements for Success: • Easy access to and from clients. • Accessibility to workforce and executive residences; offices tend to be sited near the center of metro regions or at major transportation hubs. • “Address status.” • Proximity to suppliers and collaborator firms. • Parking capacity. • Proximity to support services: banking, food, hotels and other services. • Access to intra- and inter-regional transportation connections such as freeways, high capacity transit and airports. 265 51College Station Medical District Master Plan Independent Living Multi-unit complex marketed to seniors. Rent premium of approximately 10 percent (above other equivalent multifamily units) for communal dining, housekeeping and transportation services. Source: www.asla.org_2010awards_564.html photo by Susan Rudiek Loopnet real estate brokerage service, Leland Consulting Group Assisted Living Support services include laundry, food service, arranged activities, limited medical oversight and assistance to those with physical impediments such as blindness or decreased mobility. Source: www.lakewayjoseyranch.com Loopnet real estate brokerage service, Leland Consulting Group Skilled Nursing Facilities designed to provide 24-hour care and intensive medical attention. Staff assists residents with daily tasks such as bathing, dressing and other needs. Source: www.mirabellaassistedliving.com Loopnet real estate brokerage service, Leland Consulting Group Supporting Uses: Senior Housing Stakeholder interviews and research indicate strong recognition of the need for more senior housing and Long Term Care (LTC) facilities in College Station. Given the significant increases in the College Station over-65 age group over the next 20 years, and the likelihood of significant influx of retirees, the consultant team has estimated the level of senior housing demand. In the decade between 2010 and 2020, the number of residents of the City of College Station who are over the age of 65 is expected to increase by approximately 5,000, from 17,500 to 23,400. In the 50-mile market area, this demographic group is expected to increase by approximately 22,000, from 62,000 to 84,600. See Table 2 in Chapter 3 – Healthcare Trends and Regional Demographics for details. The facilities listed below show the typical range of senior housing, all of which are appropriate in varying quantities for the medical district. In addition to the categories shown below, continuing care facilities offer the full range of these senior housing types within a single large development. This allows residents to “age in place” and move easily from one housing type to another as their medical needs or preferences change. Continuing care facilities typically require a long-term contract from residents with an initial down payment, whereas the stand- alone facilities are often contracted on a monthly basis. Senior housing differs from other housing types in that it is not only a real estate investment, but also involves a hospitality and health care component that must be considered when operating the facility. The following sections evaluate the amount of senior housing likely to be in demand within the medical district. Demand for senior housing will come from two primary sources: latent demand and the net new senior population moving to the area. Latent Demand Interviews with College Station residents and those in the healthcare industry strongly indicate that while there are thousands of senior residents of the city and surrounding areas, there is very little senior housing within the City itself. Many seniors reported having to move out of the City in order to find a senior community that met their expectations. Thus, there is expected to be latent demand for senior housing in the market. Up to 420 units of senior housing could be quickly absorbed within the medical district if facilities were provided for a mere five percent of the over-65 population found in College Station- Bryan MSA in 2010, as shown in Table 3. This is a conservative estimate that does not take into account any seniors currently living outside of the area who would like to relocate, but have been unable to find a suitable location. With an aggressive marketing campaign the initial absorption could be even higher. 266 52 College Station Medical District Master Plan Table 6: Senior Housing Demand in the Market Area and Medical District Source: Department of Health and Human Services, US Census, Leland Consulting Group Figure 21: Elderly Living in the Community, by Type of Care Source: Long Term Care in America, National Commission for Long Term Care, 1999; Leland Consulting Group Net New Senior Housing Growth Besides the latent demand to meet the need of seniors already living in the community, there will be a continued need to supply senior housing facilities to those who will be turning 65 over the coming decade. The primary market area, or the 50-mile radius, is projected to increase from 62,000 people over age 65 in 2010 to a little over 84,000 by 2020. This is an increase of 22,000 people who will need varying levels of specialized care. As shown in Figure 21, nearly 47 percent of seniors live in some type of independent living facility. If the medical district were to capture 10 percent of these new households, there would be a need for 680 independent living units by 2020, as shown in Table 6. This can be further broken down by number of units projected for the medical district by other facility types. Given the medical district’s unique position in the region, this significant capture rate is reasonable. While it is true that LTC facilities and assisted living facilities may be located anywhere in the primary market area, those facilities located closer to the community hospitals are more attractive to the senior population for obvious reasons. Planning for the medical district should take into account adequate land reservation for senior housing proximate to or in the medical district. According to the National Commission for Long Term Care, 28 percent of seniors prefer to remain in their homes or to live with family members rather than move to a senior housing facility. Seniors with a preference for living in unaffiliated private residences will most likely not be captured in the medical district and are not included in the senior housing demand projection. 267 53College Station Medical District Master Plan Town Houses or Row Houses 15 to 25 du/acre, 2 to 3 stories Surface parking or parking within each unit Source:Leland Consulting Group Wood Frame Condos or Apartments 20 to 35 du/acre, 2 to 3 stories Surface, garage or tuck under parking Source:Leland Consulting Group Mixed Use Mid-Rise 40 to 60 du/acre, 4 to 6 stories Structured parking Source:Leland Consulting Group Single-Family Housing 5 to 10 du/acre, 1 to 2 stories Surface parking Source: Istockphoto.com Cluster or Cottage Housing 10 to 25 du/acres, 1 to 2 stories Surface parking Source:Leland Consulting Group Supporting Uses: Single-Family and Multifamily Housing As previously stated, the housing market in College Station and other locales in the state has changed significantly over the past several years. In contrast to the middle of the last decade, the best selling houses in College Station are smaller (1,500 to 1,800 square feet) and considerably less expensive ($150,000 to $300,000 maximum). Some houses priced in the $400,000 range have been sitting on the market for more than two years. The core of the short-term housing market is seen as those seeking affordable homes and downsizing retirees who have moved out of large homes and are now looking for comparatively smaller and lower-maintenance homes, including “cluster” or “cottage” communities. Both trends are well suited for the medical district. Requirements for Success • Critical mass: adjacent residential neighborhoods and urban amenities (schools, parks, retail, and services). • Safety. • Large share of one and two person households within market area. • Easy access to employment centers. 268 December 13, 2012 Regular Agenda Item No. 4 College Station Municipal Management District 1 (West) To: David Neeley, City Manager From: Bob Cowell, AICP, CNU-A, Executive Director of Planning & Development Services Agenda Caption: Public Hearing, presentation, possible action and discussion regarding review and development of a Resolution of the City of College Station supporting Legislation to create the “Rock Prairie Medical District Municipal Management District Number One” and the associated draft Legislation. Relationship to Strategic Goals: Core Services and Infrastructure, Financially Sustainable City, Diverse Growing Economy, and Improving Mobility Recommendation: Staff recommends Council provide direction on items they desire to strike or revise in the proposed draft Resolution and Legislation and that the Resolution and Draft Legislation (as revised) be approved. Summary: In October of 2012, the City Council approved an amendment of the City’s Comprehensive Plan to include the College Station Medical District Master Plan. To realize the Vision and economic development opportunities realized in the Master Plan, significant barriers to development and successful plan implementation must be overcome. These barriers include, but are not limited to lack of basic infrastructure (potable water, fire flow, sanitary sewer, etc) to serve development in the area and lack of transportation capacity (vehicular, pedestrian, etc) to meet the mobility needs present in the area and the lack of a sufficient management structure to ensure the long-term success of the District. The approved Master Plan identified a series of financial and management tools necessary to overcome these barriers and to maximize the development potential of the area. A key to ol identified in the Master Plan is the use of Municipal Management Districts (MMD). Staff has proposed the establishment of two MMD’s in the District. This request addresses MMD 1, which encompasses the area west of the SH6/Rock Prairie Road Bridge and includes the two hospitals located within the District. The emphasis of the MMD in this area will be on the marketing and promotion of the District and limited service enhancements (landscaping, maintenance of public works, etc) and limited improvement projects (signage, public works enhancements, etc). Funding of the activities of the MMD will come from proceeds raised via assessments and other means as described in the proposed enabling legislation and as voted on by the MMD Board. Budget & Financial Summary: Approximately $105,000 to establish the two proposed MMD’s (some portion of which may be reimbursable), Future Activities of the MMD are funded by the members of the MMD with costs dependent upon selected MMD projects Reviewed and Approved by Legal: Yes Attachments: 1. MMD 1 Boundary Map and Legal Description 2. Draft Resolution (To Be Provided via Separate Attachment) 3. Proposed Draft Enabling Legislation (To Be Provided via Separate Attachment) 269 Joe Orr, Ine. Surveyors & Engineers 2167 Post Oak Circle College Station, Texas 77845 (979) 693-2777 Municipal Management District West area -437.07 acres College Station, Texas December 2012 All that certain tract or parcel of land lying and being situated in the Crawford Burnett league (abstract no. 7), Robert Stevenson league (abstract no. 54) and Thomas Caruthers league (abstract no. 9) in College Station, Brazos County, Texas, generally being an area centered around the intersection of Rock Prairie Road and State Highway no. 6, and the boundary being more particularly described as follows: Beginning at the intersection of the south right-of-way line ofRock Prairie Road East (60 feet south of surveyed centerline) and the east boundary ofBlock 7 of the Scott & White Healthcare Subdivision (vol. 10179, pg. 50), being the northeast comer of Lot 1, Block 7 of said subdivision, and from where the City of College Station GPS control monument no. 9 bears S 82° 02' 35" E­ 7016.5 feet Thence along the east boundary lines of said Scott & White subdivision as follows: S 2° 42' 34" E -1023.83 feet, S 50° 49' 32" W -930.60 feet, S 47° 37' 11" E 128.13 feet and S 41 ° 15' 39" W -1224.44 feet to the northeast right-of-way line of State Highway no. 6; Thence along the said highway northeast right-of-way lines as follows: S 34° 27' 26" E -55.00 feet, S 27° 43' 31" E 192.30 feet, S 36° 45' 17" E 383.87 feet and S 42° 27' 25" E -105.18 feet to a southeast line of that M.D. Wheeler, Ltd. 10.01 acre Tract One (vol. 3007, pg. 341); Thence along the southeast lines of said M.D. Wheeler Tract One and the southwest lines of 71.52 acre Tract Two as follows: N 41 ° 43' 32" E -194.25 feet, N 21 ° 27' 46" E 145.09 feet, S 46° 46' 09" E -304.24 feet and S 47° 42' 33" E -177.08 feet to the west comer of that IHD Properties, LLC 2.77 acre Tract One (voL 10144, pg. 203); Thence along the north, east and south lines of said IHD Properties tract as follows: N 72° 19' 02" E -202.14 feet, S 47° 42' 56" E -638.83 feet and S 42° 17' 04" W -175.00 feet to the northeast common comer of the Harley Subdivision (voL 3961, pg. 236) and Cooper's Subdivision (voL 4708, pg. 230) in a southwest line of said Wheeler Tract Two; 'Thence S 47° 42' 16" E -1053.70 feet along the northeast line of said Cooper's Subdivision and continuing along the northeast line of the Barker Subdivision (vol. 5101, pg. 182) to its east comer; MMD-West Page lof5 270 Thence S 38° 51' 07" W 279.95 feet along the southeast line of said Barker Subdivision to its south comer in the northeast line of State Highway no. 6, also being a west comer of the City of College Station 46.60 acre tract (vol. 3310, pg. 321); Thence crossing said highway and along its southwest right-of-way lines as follows: S 58° 32' 52" W -371.50 feet, N 49° 25' 00" W -238.23 feet, N 43° 42' 22" W -201.00 feet, N 49° 25' 00" W ~ 1400.00 feet, N 46° 52' 14" W -413.20 feet, N 38° 34' 52" W ­ 507.10 feet, N 32° 13' 53" W 534.28 feet, N 27° 56' 32" W 200.56 feet, N 32° 13' 53" W -400.00 feet, N 35° 05' 29" W -200.28 feet and N 82° 25' 23" W 78.10 feet to the westerly north comer of Lot 1, Block 1 of Graham Comer Plaza (vol. 5878, pg. 129) in the southeast line of Graham Road; Thence N 40° 30' 48" W -71.60 feet across Graham Road to the east comer of the remainder of the Jack E. Winslow, Jr. 3.0 acre tract (vol. 2291, pg 140 and vol. 2835, pg. 180) in the northwest line of Graham Road (vol. 2086, pg. 58); Thence N 32° 13' 25" W -311.17 feet, along the southwest right-of-way line of State Highway no. 6, to the north comer of the said Winslow 3.0 acre tract; Thence N 43° 01' 34" W -187.16 feet, continuing along the southwest highway right-of-way to its intersection with the southeast right-of-way line of Birmingham Drive, at the north comer of Lot 1, Block 2 of Belmont Place (vol. 816, pg. 681); Thence S 56° 19' 13" W -882.77 feet, along the said southeast line of Birmingham Drive, along the northwest line of said Belmont Place (voL 816, pg. 681), Belmont Place Section Three (vol. 9485, pg. 231) and across Longmire Drive to the westerly north comer of Lot 3, Block Four of Belmont Place Section Three (vol. 8104, pg. 183); Thence along the east, south and west lines of said Lot 3, Block Four as follows: S 76° 46' 03" E 34.73 feet, S 33° 37' 31" E 63.93 feet to the beginning ofa tangent curve to the right with a radius of 605.00 feet, along said curve through a central angle of 13° 05' 29" to the point of tangency, S 20° 32' 02" E -77.73 feet to the east comer of Lot 3, S 56° 19' 13" W 192.21 feet and N 33° 40' 47" W -302.00 feet to the west comer of Lot 3 in the southeast line of Birmingham Drive; Thence along the southeast right-of-way lines of Birmingham Drive (vol. 1024, pg. 826) as follows: S 56° 19' 13" W 578.30 feet to the beginning of a tangent curve to the left with a radius of 379.78, along said curve through a central angle of 8° 39' 09" to the point of tangency and S 47° 40' 04" W -248.52 feet to the northeast line of the City of College Station 35.00 acre tract (vol. 692, pg. 506); Thence along the northeast lines of the said City 35.00 acre tract as follows: S 48° 01' 03" E 522.82 feet and S 46° 38' 56" E -421.66 feet to the northwest right-of-way of Graham Road (vol. 1955, pg. 245); MMD-West Page 2 ofS 271 Thence along the said northwest right-of-way lines of Graham Road as follows: S 41° 33' 01" W -18.30 feet, S 42° 04' 18" W -521.46 feet and S 41° 03' 13" W 319.08 feet to the southwest line of said 35.00 acre tract; Thence N 47° 40' 02" W -1753.06 feet along the said southwest line ofthe 35.00 acre tract to the west comer of same in the common line of the F .M. and Olive Arnold 50 acre tract (vol. 200, pg. 445) and the Texas Hotel Management Corporation 17.215 acre tract (vol. 3665, pg. 248); Thence along the said common Arnold and Texas Hotel lines and continuing along the northwest lines ofArnold Road (voL 5027, pg. 162) as follows: S 43° 02' 52" W -190.23 feet, S 42° 48' 34" E -37.00 feet, S 43° 06' 26" W -10.80 feet, N 42° 48' 34" W -37.00 feet, S 43° 06' 26" W 34.60 feet, S 65° 14' 25" W -160.32 feet, N 47° 33' 01" W -32.38 feet, S 63° 10' II" W -180.26 feet, to the beginning of a tangent curve to the left with a radius of 405.00 feet, along said curve through a central angle of 17° 37' 25" to the end of said curve, and S 55° 19' 31" W 5.32 feet to the east comer of the City of College Station 9.93 acre tract (vol. 448, pg. 230); Thence along the south, west and north boundary of Brian Bachmann Athletic Park (formerly Southwood Athletic Park) and continuing along Rock Prairie Road as follows: S 41 ° 59' 01" W -1027.13 feet along the northwest line ofArnold Road and southeast lines ofthe said City 9.93 acre tract and the City 15.89 acre tract (vol. 448, pg. 232), N 43° 45' 01" W -1185.92 feet, along the southwest line of said 15.89 acre tract to the southeast right-of­ way line of Rock Prairie Road (80' R.O.W. -vol. 779, pg. 571), N 51 ° 51' 01" E 1177.50 feet along said southeast line of Rock Prairie Road to the beginning of a tangent curve to the right with a radius of 1006.62 feet in the southeast boundary of Southwood Terrace Phase 3-C (vol. 523, pg. 431), along said curve through a central angle of 8° 11' 51" to the point of tangency, N 60° 08' 52" E -1486.99 feet along the southeast boundary of Southwood Terrace Phase 3-B (vol. 579, pg. 380) and Phase 3-A (vol. 519, pg. 378) to the beginning of a tangent curve to the right with a radius of 960.00 feet, along said curve through a central angle of 18° 38' 31" to the point of tangency, N 78° 47' 23" E -14.90 feet and N 11 ° 12' 37" W -79.72 feet across Rock Prairie Road to the southwest comer ofthe Remington Subdivision (vol. 1239, pg. 219); Thence along the west boundary lines of said Remington Subdivision, the northwest boundary of Tract B, Ponderosa Place Section Two (vol. 2680, pg. 321) and Longmire Place (voL 3377, pg. 155) and along the southwest boundary of Ponderosa Place (vol. 490, pg. 169) as follows: N 26° 55' 04" W -252.32 feet, N 17° 18' 19" E -259.07 feet, N 42° 34' IT' E 624.79 feet and N 40° 39' 13" W -796.43 feet to the west comer of Lot 4, Block 21 of Ponderosa Place, in the southeast line of Ponderosa Road; Thence N 49° 20' 47" E -1150.00 feet, along the southeast right-of-way line of Ponderosa Road, to the north comer of Lot 1, Block 19 of Ponderosa Place, in the southwest right-of-way of State Highway no. 6; MMD-West Page 3 of5 272 Thence along the said highway southwest right-of-way lines as follows: S 40° 39' 13" E 480.00 feet, S 32° 12' 28" E -185.04 feet, S 41 ° 13' 02" E 80.23 feet and S 17° 22' 13" E -34.06 feet to the southeast line of Lot 1, Block 20 of Ponderosa Place; Thence N 78° 53' 01" E -493.32 feet, across State Highway no. 6 to the west comer of Lot 2-B, Block One of Cornerstone Commercial Section One (vol. 3922, pg. 282) in the southeast right-of­ way line of Wood creek Drive; Thence along the southeast right-of-way of Wood creek Drive as follows: Along the arc of a curve to the right with a radius of 890.00 feet, through a central angle of 9° 52' 07", the chord of which bears N 52° 46' 54" E -153.10 feet, N 57° 42' 58" E 318.00 feet to the beginning ofa tangent curve to the left with a radius of 835.00 feet, along said curve through a central angle of 8° 00' 00" to the north comer of Lot 1 (vol. 3283, pg. 201); Thence along the northeast lines of Lot 1 and Lot 2-A of said Cornerstone Commercial Section One as follows: S 40° 17' 03" E -155.81 feet to the east common comer of Lot 1 and Lot 2-A and the beginning of a tangent curve to the right with a radius of 600.00 feet, along said arc through a central angle of 16° 01' 29" to the point of tangency, and S 24° 15' 34" E 280.69 feet to the most easterly comer of said Lot 2-A; Thence along the south boundary lines of Wood creek Section 4 (vol. 1315, pg. 217), Section Six South (vol. 2109, pg. 199) and Section Seven (vol. 2580, pg. 113), defining the north boundary lines of the remainder of the Edward Jr. and Beatrice Uvaceck tract (vol. 274, pg. 383 and voL 321, pg. 664), as follows: N 24° 13' 07" E -555.17 feet, N 79° 45' 53" E 313.69 feet, S 48° 05' 30" E -216.00 feet, S 44° 28' 03" E -75.26 feet, S 28° 11' 32" E 108.12 feet, S 34° 34' 23" E -162.74 feet, S 39° 46' 00" E -149.62 feet, S 44° 34' 42" E -282.83 feet, N 24° 16' 33" E -134.65 feet and N 68° 52' 20" E 230.83 feet to the northwest comer of the Riviera Addition (vol. 6607, pg.97); Thence S 15° 28' 15" E 269.56 feet, along the west line of said Riviera Addition, to the north right-of-way line of Rock Prairie Road East (59.0 feet north of surveyed centerline); Thence S 86° 27' 34" E -961.09 feet, along said north right-of-way line, to its intersection with an extension of the east boundary of Block 7 of the Scott & White Healthcare Subdivision; Thence S 2° 42' 34" E 120.04 feet, across Rock Prairie Road, to the Point ofBeginning and containing 437.07 acres ofland more or less. Bearings are Texas State Plane, NAD-83 (CORS) datum, based on City of College Station GPS control points and GPS observations. Volume and page numbers cited refer to the Brazos County public records. No monuments were set for this survey and found monuments are not cited. MMD-West Page 4 of5 273 This document was prepared under 22 TAC §663.21 does not reflect the results of an on the ground survey and is not to be used to conveyor establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. See survey plat prepared with this description, dated December 2012. MMD-West Page 50f5 274 275 December 13, 2012 Regular Agenda Item No. 5 College Station Municipal Management District 2 (East) To: David Neeley, City Manager From: Bob Cowell, AICP, CNU-A, Executive Director of Planning & Development Services Agenda Caption: Public Hearing, presentation, possible action and discussion regarding review and development of a Resolution of the City of College Station supporting Legislation to create the “Rock Prairie Medical District Municipal Management District Number Two” and the associated draft Legislation. Relationship to Strategic Goals: Core Services and Infrastructure, Financially Sustainable City, Diverse Growing Economy, and Improving Mobility Recommendation: Staff recommends Council provide direction on items they desire to strike or revise in the proposed draft Resolution and Legislation and that the Resolution and Draft Legislation (as revised) be approved. Summary: In October of 2012, the City Council approved an amendment of the City’s Comprehensive Plan to include the College Station Medical District Master Plan. To realize the Vision and economic development opportunities realized in the Master Plan, significant barriers to development and successful plan implementation must be overcome. These barriers include, but are not limited to lack of basic infrastructure (potable water, fire flow, sanitary sewer, etc) to serve development in the area and lack of transportation capacity (vehicular, pedestrian, etc) to meet the mobility needs present in the area and the lack of a sufficient management structure to ensure the long-term success of the District. The approved Master Plan identified a series of financial and management tools necessary to overcome these barriers and to maximize the development potential of the area. A key to ol identified in the Master Plan is the use of Municipal Management Districts (MMD). Staff has proposed the establishment of two MMD’s in the District. This request addresses MMD 2, which encompasses the area east of the SH6/Rock Prairie Road Bridge and includes most of the undeveloped properties located within the District. The emphasis of the MMD in this area will be on complimenting the TIRZ in funding for select improvement projects as well as the marketing and promotion of the District and limited service enhancements (landscaping, maintenance of public works, etc) and limited improvement projects (signage, public works enhancements, etc). Funding of the activities of the MMD will come from proceeds raised via ad valorem taxes, assessments and other means as described in the proposed enabling legislation and as voted on by the residents of the MMD and the MMD Board. Budget & Financial Summary: Approximately $105,000 to establish the two proposed MMD’s (some portion of which may be reimbursable), Future Activities of the MMD are funded by the members of the MMD with costs dependent upon selected MMD projects Reviewed and Approved by Legal: Yes Attachments: 1. MMD 2 Boundary Map and Legal Description 2. Draft Resolution (To Be Provided by Separate Attachment) 3. Proposed Draft Enabling Legislation (To Be Provided by Separate Attachment) 276 Joe Orr, Inc. Surveyors & Engineers 2167 Post Oak Circle College Station, Texas 77845 (979) 693-2777 Municipal Management District East area -1301.76 acres (net) College Station, Texas December 2012 All that certain tract or parcel of land lying and being situated in the Thomas Caruthers league (abstract no. 9) and Robert Stevenson league (abstract no. 54) in College Station, Brazos County, Texas, generally being the area between State Highway no. 6 and Rock Prairie Road East, from Medical A venue to William D. Fitch Parkway, save and except all of Lot 1, Rock Prairie Baptist Church (voL 7312, pg. 207) lying south of the south right-of-way of Rock Prairie Road East, and the boundary being more particularly described as follows: Beginning at the intersection of the south right-of-way line of Rock Prairie Road East (60 feet south of surveyed centerline) and the east boundary of Block 7 of the Scott & White Healthcare Subdivision (vol. 10179, pg. 50), being the northeast corner of Lot 1, Block 7 of said subdivision, and from where City of College Station GPS control monument no. 9 bears S 82° 02' 35" E ­ 7016.5 feet. Thence N 2 ° 42' 34" W -120.04 feet along an extension of the said east boundary line of Block 7, to a point in the north right-of-way line of Rock Prairie Road East; Thence along the north right-of-way lines of Rock Prairie Road East (59.0 feet north of the surveyed centerline) as follows: S 86° 27' 34" E -1771.13 feet, S 85° 02' 05" E -1228.54 feet and S 84° 23' 02" E -10.29 feet to a right-of-way offset point in the common line of the Dale and Reba Conrad 26.25 acre tract (voL 460, pg. 505) and the Flying Ace Ranch, Ltd. 26.245 acre tract (vol. 3767, pg.237); Thence S 24° 22' 52" W -1.58 feet along said common tract line to another offset point in the north right-of-way line of Rock Prairie Road East; Thence along the north right-of-way lines of Rock Prairie Road East (57.5 feet north of the surveyed centerline) as follows: S 84° 23' 02" E 606.93 feet, S 82° 02' 02" E -1453.40 feet, S 77° 01' 02" E 1052.59 feet, S 76° 28' 02" E -2876.58 feet, S 69° 53' 32" E -2812.30 feet to the beginning ofa tangent curve to the right with a radius of 1057.50 feet, along said curve through a central angle of 11 ° 43' 34" to a point in the old northeast prescriptive right-of-way fenceline, and S 69° 17' 50" E 269.35 feet along said fenceline to the southeast line of the Hartzell Elkins 35.37 acre tract (vol. 1920, pg. 323) and northwest line of William D. Fitch Parkway; MMD-East Page 1 of 4 277 Thence across Rock Prairie Road East as follows: S 42° 32' 30" W 32.00 feet to the south comer of said Elkins tract, called to be in the centerline of the road, S 19° 52' 04" W 36.01 feet to the east comer of the College Station Independent School District 44.535 acre tract (vol. 8413, pg. 291) at the old right-of-way fence comer post, and S 41 0 51' 48" W -170.08 feet along the southeast line of said C.S.I.S.D. tract and northwest line of Fitch Parkway to its intersection with the south right­ of-way chamfer of Rock Prairie Road East; Thence along the south right-of-way lines of Rock Prairie Road East (57.5 feet south of the surveyed centerline) as follows: N 5° 38' 11" W 67.56 feet, N 53° 08' 10" W 112.88 feet to the beginning ofa tangent curve to the left with a radius of 942.50 feet, along said curve through a central angle of 16° 45' 22" to the point of tangency, and N 690 53' 32" W -551.37 feet to the common line of said C.S.I.S.D. tract and the Brazos Valley Solid Waste Management Agency, Inc. 76.00 acre Tract II (vol. 9857, pg. 186); Thence S 41 0 51' 48" W -1842.68 feet along said common tract line to its southwest end in a northeast line of the B.V.S.W.M.A. 179.99 acre Tract I; Thence S 480 05' 47" E 941.57 feet, along the common line of said Tract I and the C.S.I.S.D. tract to their common comer in the northwest right-of-way of William D. Fitch Parkway; Thence S 41 0 51' 48" W -1425.30 feet, along said northwest right-of-way line, to the south comer of the said B.V .S. W.M.A. Tract I; Thence S 41 0 51' 48" W 1066.80 feet, continuing along said northwest right-of-way line of William D. Fitch Parkway, to the east common comer of the City of College Station 140.29 acre Tract One (vol. 3900, pg. 188) and Spring Meadows Phase I (vol. 5106, pg. 284); Thence along the southern boundaries of multiple City of College Station tracts (vol. 3900, pgs. 188 & 223, vol. 5056, pg. 43) as follows: N 73 0 00' 00" W -496.40 feet, S 51 0 00' 00" W -175.05 feet, N 76° 00' 00" W -200.00 feet, S 41 ° 51' 44" W -51.88 feet, N 70° 46' 00" W -157.10 feet, S 41 0 51' 44" W­ 262.67 feet, N 82 0 55' 43" W -700.87 feet, S 41 0 52' 26" W -650.00, N 48° 08' 02" W 412.47 feet, S 66° 47' 54" W -827.57 feet, N 470 45' 25" W -129.90 feet, S 28° 59' 29" W -2.01 feet, S 41° 48' 43" W -336.13 feet, S 48° 45' 08" E-440.00 feet and S 53° 00'00" W -1304.90 feet to the northeast right-of-way line of State Highway no. 6; Thence along the northeast right-of-way lines of said highway as follows: N 490 25' 00" W -438.00 feet, N 55° 07' 38" W -201.00 feet, N 49° 25' 00" W -751.78 feet to the west comer of the City of College Station 36.9 acre tract (vol. 4329, pg. 134), and N 49° 25' 00" W -1025.93 feet to the south comer of Barron Park Subdivision (vol. 939, pg.209); MMD-East Page 2 of4 278 Thence along the southeast, northeast and northwest lines of Lots 1 and 2 of said Barron Park Subdivision as follows: S 41 ° 09' 46" E -1353.16 feet, N 49° 12' 46" W -88.68 feet to the south comer of the City of College Station 100.64 acre tract (vol. 6927, pg. 226), N 54° 07' 24" W -291.11 feet, N 64° 27' 21" W -117.03 feet, N 54° 53' 54" W 24.95 feet, N 53° 19' 32" W 113.87 feet, N 49° 26' 59" W -190.11 feet and S 41 ° 09' 38" W -1286.04 feet to the common comer of said Lot 2 and Lot 3 in the northeast right-of-way line of State Highway no. 6; Thence along the said northeast right-of-way lines of said highway as follows: N 47° 46' 18" W -537.86 feet to the southwest common comer of Lot 3 of said Barron Park Subdivision and that City of College Station 46.60 acre tract (voL 3310, pg. 321), N 47° 46' 48" W -65.34 feet, N 55° 07' 37" W -201.00 feet, N 49° 25' 00" W -600.00 feet and N 44° 08' 33" W -147.79 feet to the southwest common comer of said 46.60 acre tract and the Barker Subdivision (vol. 5101, pg. 182); Thence N 38° 51' 07" E -279.95 feet along the southeast line of said Barker Subdivision to its east comer; Thence N 47° 42' 16" W -1053.70 feet along the northeast line of said Barker Subdivision and continuing along the northeast line of Cooper's Subdivision (vol. 4708, pg. 230) to its north comer, also being the east comer of the Harley Subdivision (voL 3961, pg. 236) and the south comer of that lliD Properties, LLC 2.77 acre Tract One (vol. 10144, pg. 203); Thence along the south, east and north lines of said lliD Properties tract as follows: N 42° 17' 04" E -175.00 feet, N 47° 42' 56" W -638.83 feet and S 72° 19' 02" W -202.14 feet to the northeast line of said Harley Subdivision and a southwest line of that M.D. Wheeler, Ltd. 71.52 acre Tract Two (vol. 3007, pg. 341); Thence along the southwest lines of said Wheeler Tract Two and continuing along the southeast lines of the Wheeler 10.01 acre Tract One as follows: N 47° 42' 33" W -177.08 feet, N 46° 46' 09" W -304.24 feet, S 21 ° 27' 46" W -145.09 feet and S 41 °43' 32" W 194.25 feet, returning to the northeast right-of-way line of State Highway no. 6; Thence along the said highway northeast right-of-way lines as follows: N 42° 27' 25" W -105.18 feet, N 36° 45' 17" W 383.87 feet, N 27° 43' 31" W -192.30 feet and N 34° 27' 26" W 55.00 feet to the southeast line of Block 4 ofthe said Scott & White Healthcare Subdivision; Thence along the east boundary lines of said Scott & White subdivision as follows: N 41° 15' 39" E-1224.44 feet, N 47° 37' II" W 128.13 feet, N 50° 49' 32" E 930.60 feet and N 2° 42' 34" W -1023.83 feet to the Point of Beginning and containing 1308.51 acres of land more or less. MMD-East Page30f4 279 SAVE and EXCEPT the following tract: Beginning at the intersection of the south right-of-way line of Rock Prairie Road East (57.5 feet south of the surveyed centerline) and the west line of Lot 1 of Rock Prairie Baptist Church (vol. 7312, pg. 207), from where City of College Station GPS control monument no. 9 bears S 78° 01' 24" E -3240.0 feet. Thence S 82° 02' 02" E -414.05 feet along said south right-of-way line, parallel and 7.50 feet south of the north line of said Lot 1, to its intersection with the east line of said Lot 1; Thence S 20° 22' 54" E -600.82 feet along the east line of Lot 1 to its southeast corner; Thence N 82° 02' 02" W -699.33 feet along the south line of Lot 1 to its southwest corner; Thence N 7° 57' 58" E -528.77 feet along the west line of Lot 1 to the Point of Beginning and containing 6.76 acres ofland more or less. Leaving a net acreage for this described tract of 1301.76 acres more or less. Bearings are Texas State Plane, NAD-83(CORS) datum, based on City of College Station GPS control points and GPS observations. Volume and page numbers cited refer to the Brazos County public records. No monuments were set for this survey and found monuments are not cited. This document was prepared under 22 TAC §663.21 does not reflect the results of an on the ground survey and is not to be used to convey or establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. See survey plat prepared with this description, dated December 2012. MMD-East Page4of4 280 281