HomeMy WebLinkAboutTax Increment Financing (TIF) Presentation, 2002
Tax Increment Reinvestment Zone #15
Purpose regional growthunderutilized area which will spur Results: signature development in an •conference centerTIRZ to provide funding for a new Partnering includes participation in
a •wide impact-have a communitytourism and new development which will Requesting County to partner in creating •
What Is Tax Increment Place these revenues in a special fund for –property values in the Reinvestment Zone“Capture” increased taxes from increased –Establish a Reinvestment Zone–Allows
a City to:Texas Tax Increment Financing Act Financing?
TIRZ Creation Process Presentation to taxing entities»representativesSelection and meeting with taxing entities »other taxing entities and public hearingResolution re. 60 days written
notice to »Preliminary finance/project plan»Voluntary petition by property owners»
TIRZ Creation Process the TIRZincreased tax revenues to be dedicated to Contract with County for percentage of •& approved by the Board & City CouncilProject and finance plans are developed
•board of directorsDesignate zone by ordinance and appoint •Public Hearing on creation of zone•
Timeline Final Project & Finance PlanTIF Board meets; Council approves County acts on participation agreePublic Hearing/Council considers ordNotice of Public Hearing in EaglePresentation
to CountyPresentation to BISDCounty/School appoint rep (schl opt)Send Notice of IntentionMar/Apr•Mar/Apr•Mar 14•Mar 5•Feb 19•Feb 12•Feb 8 •Jan 25•
Background hotel management inputRefined project based on consultants and •Approved Agreements with TAC Realty –New private sector partner•Project feasibility updated•come into fruitionExplored
NG, WPC but projects did not •November 4, 1997 voter referendum•Concept to increase tourism in B/CS•
Background evaluation2001 Crestline Hotels and Resorts •feasibility reportMarch 2000 PriceWaterhouse Coopers •report1997 Coopers and Lybrand feasibility •2015 needed 1620 more roomsoutlined
need for 330 more rooms; by Price Hospitality firm -1994 Harrison•Feasibility-
Background on TIF’s
Background Improvements underway–Improvements complete–Bonds issued–Revenues/Expenditures–Status report on TIF #1•TIF #7This TIF is proposed to replace dissolved •
Background Business groupsState assoc/org:Target market change•$153 mil invest. •192 acres •$18 mil project•300 room hotel•TIF #15State assoc/org:•$21 mil invest.•12 acres•$6 mil project•200
room hotel•TIF #7
TIF Area
Preliminary Project Plan and parking24,000 s.f. shared space 192.64 acres mixed use•hotel300+ room full service •office building250,000+ s.f. corporate •Private Development:Developed
on 10 ac.•Kitchen–Amphitheater–Meeting rooms–Jr. ballroom–Grand ballroom–center60,000 s.f. conference •Public Development:
Preliminary Project Plan con’t(addn’l 210 acres)service entire area extended and sized to available but will be Utilities not currently •eastHwy 30 and Hwy 60 adjacent tracts on 2 undeveloped
•Use/Conditions for 14 and 18 yearsbut C.O. debt is only Begins immediately –2002 to 2022•Term of TIRZ
Preliminary Project Plan con’t 1; may require rezoning-MRemaining 137.1386 acres currently zoned •on 11/15/01B by City Council -55.5014 acres rezoned to C•Zoningcomprehensive plan related
to 30/60 corridorImprovements are compatible with the •Comprehensive Plan
Prelim. Construction Schedule
Preliminary Finance Plan fund loan-Inter•Hotel/motel tax revenues from project•other development in the TIRZGenerated by hotel, office building, and –TIF revenues•Funding Sources$18,000,000Estimated
Project Cost
Taxing Units
Economic Feasibility$02022-2016–$5,000,0002015–$10,000,000 per year2007 thr 2014–$36,675,0002006–$31,675,0002005–Annual captured (increase increment):•is $3,444,610 Current estimated
appraised (base) value •
Economic Feasibility Con’t valorem values for land or buildingsNo anticipated appreciation in ad •$20,149,526Cumulative tax increment generated: •$153,350,000•
Debt Service No capitalization•8 years$1,100,000Interfund loan18 years$11,400,0002003 Series14 years$5,500,0001998 SeriesAmortiza.AmountSeriesTIF begins this year but amortization is:
Debt Repayment City at 100% of tax rate–County at O&M rate (not debt service rate)–Dedicate new tax increment •project to repayment of debttaxes from the hotel associated with the Dedicate
all of the hotel/motel (room) •
Facility Management regardless if staying at hoteltown) -of-center attendees (local and outMeeting facilities available to conference •Independent Resort Hotels–Marriott Hotels–Hotels
and Resorts; experience withBoth facilities managed by Crestline •
Contract Provisions
Contract Provisions Con’t
City Benefits acres of undeveloped land east of TIFEngine for addn’l development on 200 •development inside/outside TIFSales tax generated from retail •Sales tax generated through construction•60,000
square foot conference center-New 300+ room Full•Increased tourism activity•
BISD Benefits minimalcommercial therefore primarily planned for Area comprehensive •generated are $2.5 By year 2015 taxes •annuallyoffice are $889,000 hotel and corporate Taxes generated
from •developmentfrom $153 million Full tax contribution •
County Benefits major roadway avail)(anchor, utilities and land outside of TIF of acres undeveloped development on 210 economic •county servicesMinimal demand on •inside/ outside TIFfrom
retail dev. Sales tax generated •constructionfor subsequent Additional sales tax •initial constructionSales tax first year •activityIncreased tourism •
•to enhance tourism in Brazos Valleyfor construction of a conference center creation of a TIF to provide funding The County’s participation in and –60 day waiver & appointment of a rep–The
City is requesting:
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