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HomeMy WebLinkAboutPO 6767: AMENDING THE PROJECT PLAN AND FINANCING PLAN FOR THE DOWNTOWN TAX INCREMENT REINVESTMENT ZONE TIRZ NO. 1 P.O. No. 6767 04/30/19 gt ORDINANCE NO. AN ORDINANCE AMENDING THE PROJECT PLAN AND FINANCING PLAN FOR THE DOWNTOWN TAX INCREMENT REINVESTMENT ZONE TIRZ NO. 1 , CITY OF PORT ARTHUR, TEXAS WHEREAS, pursuant to Ordinance No. 12-75, adopted by the City Council of the City of Port Arthur, Texas (the "City") on November 9, 2012, the City created Tax Increment Reinvestment Zone Number One, TIRZ No. 1 (Downtown TIF), City of Port Arthur, Texas as authorized by the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code (Downtown TIF) (the "TIRZ No. 1 (Downtown TIF)"); and, WHEREAS, pursuant to Ordinance No. 13-10, adopted by the City on March 6, 2013, the City adopted the Final Project Plan and Reinvestment Zone Financing Plan for the Port Arthur Downtown Reinvestment Zone #1, an Area designated as a Reinvestment Zone for Tax Increment Financing Purposes; and, WHEREAS, pursuant to Ordinance No. 15-55, adopted by the City on December 8, 2015, and Section 311.007 of the Texas Tax Code (the "Tax Code"), the City Council reduced the boundaries of an existing reinvestment TIRZ No. 1 (Downtown TIF), subject to the limitations provided by Section 311.006 of the Tax Code; and, WHEREAS, on April 30, 2019, the Board of Directors of the Downtown TIRZ #1 held a meeting to consider whether to amend the existing Project Plan and Financing Plan as follows: "A Motion To Approve Proposed Amendments To The Project & Finance Plan Of Downtown TIRZ Zone #1. This Proposed Amendment Authorizes The Sale Of The Sabine Hotel Consistent With This Newly Amended Project Plan & Finance Plan, Contingent Upon Final Approval By The City Of Port Arthur City Council." ; and, WHEREAS, the Board of Directors approved the Amended Project Plan and Financing Plan as delineated herein as Exhibit "A"; and, WHEREAS, the City wishes to Amend the existing Project Plan and Financing Plan, as attached hereto as Exhibit "A" and hereby made a part of this Ordinance for all purposes. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council of the City of Port Arthur hereby authorizes the Amended Project Plan and Financing Plan for the Downtown Tax Increment Reinvestment Zone TIRZ #1, attached hereto in substantially the same form as Exhibit "A". Section 3. That if any portion, section or part of a section of this Ordinance is subsequently declared invalid, inoperative or void for any reason by a court of competent jurisdiction, the remaining portions, sections or parts of sections of this Ordinance shall be and remain in full force and effect and shall not in any way be impaired or affected by such decision, opinion or judgment. Section 4. That this Ordinance shall take effect and be in full force and effect from and after its adoption. READ, ADOPTED AND APPROVED on this day of A.D., 2019, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor: Councilmembers. , NOES: Derrick Ford Freeman, Mayor ATTEST: Sherri Bellard City Secretary APPROVED AS TO FORM: Valecia R. Tizeno City Attorney APPROVED FOR ADMINISTRATION: Rebecca Underhill Interim City Manager Section 4. That this Ordinance shall take effect and be in full force and effect from and after its adoption. READ, ADOPTED AND APPROVED on this day of A.D., 2019, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor: Councilmembers: NOES: Derrick Ford Freeman, Mayor ATTEST: Sherri Bellard City Secretary APPROVED AS TO FORM: A 4(Ori0 al-7 . Tiz- o City Attorne APPROVED FOR ADMINISTRATION: Rebecca Underhill Interim City Manager EXHIBIT "A" Amended Project Plan and Financing Plan (May 7,2019) Project Plan A. Overview This amended project plan supersedes and replaces the Project Plan approved by the Zone Board on February 7, 2013 and approved and adopted by the City Council by Ordnance Number 13-10 enacted March 6, 2013. The amendments incorporate new changes in proposed private development and investment In the Zone by MOTIVA, (the "Developer") that materially expand and change the scope and extent of future development of the Project (the "New Development"). This Amended Project Plan was reviewed and approved by the Zone Board of Directors on April 30, 2019 and approved by the City Council by Ordinance Number , May 7, 2019 following a public hearing on April 30,2019. The amendments described below detail the revised and additional improvements to be funded by the Zone to implement the New Development, as well as the methods of financing and the sources of funding available to the Zone, including the participation levels of the taxing entities levying ad valorem taxes in the Zone. As amended, the Zone will facilitate the revitalization and redevelopment of approximately 309 acres located in downtown Port Arthur as shown in the boundary attached as Exhibit A. The Project Plan is consistent with the City's adopted Downtown Development Plan which seeks to revitalize downtown Port Arthur. The Zone will be one of the primary implementation tools for the Downtown Development Plan through this Zone Project Plan and Financing Plan. By these focused planning and financing vehicles, the City will be able to promote, jumpstart and monitor the critical revitalization effort to the benefit of all of the citizens of Port Arthur, individual and corporate, as well as all taxing jurisdictions. 1 Most significant among the proposed public improvements are utility and roadway improvements, environmental remediation, streetscapes, gateways, parks, cultural facilities and real property assembly and redevelopment. The estimated budget for the Zone is approximately $16,685,100.00 as detailed in the Financing Plan. In summary, as amended the Project Plan will permit the Zone to focus, enhance and accelerate the redevelopment of downtown Port Arthur. But for the Zone and the earlier creation in 2012 of the Zone, the participation of the City of Port Arthur, Jefferson County, the Sabine-Neches Navigation District and Drainage District #7, this area would not likely have experienced the magnitude of private investment now proposed in the New Development necessary to stimulate revitalization in the foreseeable future. B. Existing Conditions and Proposed Uses 311.011(b)(1) The Zone continues to have a large number of vacant and decaying structures and environmentally impacted properties. The Zone continues to lack basic retail service and this lack of service hinders effort to attract additional residents and services to the city and the downtown area included in the Zone. These existing conditions will be substantially changed with the redevelopment, remediation and reconstruction of existing, vacant and underutilized properties and structures included in the proposed New Development. These Proposed Uses included in the New Development include new office, business, commercial and residential uses of existing structures in the Zone that will cause increased economic activity in the Zone. A secondary, induced effect of such activity, the New Development will attract new and additional commercial retail private investment to the city and the Zone to serve and support such new proposed uses. Together, the New Development and the supporting retail services will increase the taxable ad valorem values in the Zone, increase sales tax and Temporary residency occupancy and related taxes. Additionally, the New Development will enhance and facilitate the commercial and industrial activity in the City by providing administrative and office facilities to support for the expansion of the industrial and petrochemical refinery capacity of the City's economic base. 2 C. Municipal Ordinances 311.011(b)(2) The new Proposed Uses are not anticipated to require any changes to existing City ordinances. D. Non-Project Costs 311.011(b)(3) Non-project costs represent costs and expenditures for projected private and public investments that will not be funded or reimbursed by the Zone. Non-Project Costs also include non-reimbursable private investment that is anticipated by the Financing Plan and used for forecasting the future value and incremental revenue of the Zone. For example, the cumulative cost of acquisition, remediation and reconstruction of the former Federal Building, former World Trade Building, Sabine Hotel and additional public buildings has been preliminarily estimated as $150,000,000.00 all of which are Non-Project Costs and potentially represent the incremental revenue of the Zone. E. Relocation 311.011(b)(4) The Zone does not contemplate any condemnation to accomplish relocation, but if necessary the cost of such relocation is eligible for reimbursement as project cost under Section 311.002(f). II. Financing Plan The Zone was created to provide funding for public improvements, infrastructure and facilities to avert blight, business base decline and to attract new development. The implementation of this plan will result in in an increase in the tax increment of the Zone and surrounding areas to the benefit of the City and the other taxing jurisdictions and taxpayers. A. Estimated Project Cost Descriptions 311.011(c) The project costs below follow the categories set forth in Section 311.002 and Section 311.010(b) related to an agreement between the Zone and the City the term of the agreement dedicate, pledge, or otherwise provide for the use of revenue in the tax increment fund to pay any project costs that benefit the reinvestment zone. 3 Capital Projects Utilities/Infrastructure Costs include but are not limited to reimbursement for utility expansion for water, sewer, drainage and paving improvement. $4,550,700.00 Streetscape, Gateways, Parks, and Community Facilities These enhancements are proposed to properly serve existing and future development, and will include but are not limited to lighting, walks, landscaping and related street furniture, automobile parking facilities, traffic control devices, greenbelts, open space improvements, fountains, open space improvements, ponds, walking paths, bicycle paths, parks and park facilities. In conjunction with the City's Downtown Revitalization Plan, eligible activities may include: a convention center, auditorium, concert hall, museum, or exhibition facility, with related store, restaurant, concession and automobile parking facilities are also facilities that when constructed within the zone will enhance the zone. The City of Port Arthur Downtown Revitalization Plan, pages 63 through 112, approved by the Port Arthur City Council pursuant to Resolution No. 16-145 on May 31, 2016 are adopted as part of this plan and are incorporated herein as though set forth in their entirety in this paragraph. Also, included are outdoor pavilions, community and arts space, recreation and sports facilities. $5,604,400.00 Demolition/Environmental Abatement Zone funds may be used to assist financially the demolition and environmental abatement to serve public purpose including the preparation of sites and existing structures for new use. $500,000.00 Professional Services These costs include but are not limited to architectural, planning, legal, landscape architecture, financial marketing, public relation, management, leasing bookkeeping, tax roll verification $200,000.00 annually 4 Financing Costs This category of cost includes all interest, legal fees, brokerage charges, transfer or placement charges, premiums and fees paid for loans, credit enhancement fees, notes bond and other instruments of credit issued to pay project costs. The total cost in this category of costs will be no more that one-fourth of Project of total project costs. $2,530,000.00 Zone Operation This category is the anticipated cost of operation and administration of the Zone over its life. $4,000,000.00 TOTAL ESTIMATED ZONE EXPENDITURES $16,685,100.00 B. Kind, Number and Location Zone Improvements 311.011(c)2) The Zone will fund the above referenced capital projects, real property costs, financing costs, professional and administrative service for the Zone at the discretion and approval of the Zone Board and City Council. C. Economic Feasibility Study 311.011(c)(3) The amended plan has been reviewed by the City of Port Arthur, its financial advisors and bond counsel. The City Council of the City of Port Arthur finds that the plan is economically feasible. D. Estimate of Bonded Indebtedness 311.011(c)(4) The City may issue bonds secured by the tax increment revenues to repay or reimburse the Project Costs. The costs include the public improvement, capitalized interest, professional fees, developer interest and issuance costs for the bonds, which would be based on the total project costs of $10,155,100.00. Bonds may be issued at such times that the tax increment revenues are sufficient to pay principal and interest on such bonds. Alternatively, the Zone may elect to reimburse project cost directly from the tax increment proceeds or bonds. 5 E. Estimate of Time When Monetary Obligations are Incurred. 311.011(c)(6) The Zone will incur monetary obligation as detailed in Developer or other reimbursement agreements to be executed between the Zone and Developers or the Zone and the City. Administrative costs and creation/organization Zone costs may be paid from tax increment bonds or directly from tax increment revenues. F. Methods of Financing and Sources of Revenue 311.011(c)(6) The Zone may use both bonded indebtedness, pay as you go, and other reimbursement methods to finance the project costs. The methods include the following: Private Financing Grants /Other Public Funds Reimbursement Agreements — both public and private agreements with developers Tax Increment Bonds Short term tax increment notes The primary source of revenue is ad valorem taxes generated on the annual value above the base year value. The other taxing units may elect to participate with all or a portion of the ad valorem taxes. G. Current Appraised Value 311.011c (7) The total assessed value in 2012 within the Zone was at $5,773,987.00. (See Exhibit B) H. Expected Sources of Revenue The total estimate captured appraised value is approximately $5,260,000,000. 6 I. Tax Rates of Participating Tax Entities City of Port Arthur 0.792000 per $100 Jefferson County 0.364977 per $100 Drainage District #7 0.239850 per $100 Sabine Neches Navigation District 0.092067 per $100 J. Duration of the Zone The Zone was created with a duration of 30 years. The City may extend the term, or shorten the term when all obligation payable from the tax increment are paid. Exhibit "A" y -,-. = , .4-11) 1.?-.1 1-4 ca N n 5-, 1-, th,ln- - ;,-. . -v O x 4.1 H U a -CC'- == =� LJ- I W / S31NVH0 3)IVl t . I —l_ I : , N .... _ o = a Mon NM Nil Z _SITEll —II Oil CM .0 I SIHdW3111 ® ■ WVHIII`J \�I,,u.I 1 Eig — 1 \ Y� /rnu 113M,113 L� ' /[)] • I I 3llIAHSVNup . kt...._11 I r ii, I I I I 7 NOJ S3121tlHO I I I I I -_ MIMI F / VI I —N VS i I I II r �gill visnonv I I I I L I • rc • x x g 3118011ro N a / I it I 11 I II II` ' /.. ' L :x —NM 0 7 Q 0 I C ■ 0 2I I • f=� SM=. ‘ --\ II I I I �� W miii MIN C Mil II 1 --I I 1 tl3ld 3N11SV31d I I I IIA NI1S0V I III / li H1bOM L Od _I I I II I -: I I I r- I MIS_ ra II I II II— III I I 1 ' III I I ® 1 r ® II L - 1 171-1-T7-1 f -I I I 11 I I I l� 1 I Exhibit "B" Jefferson County County 2012 CERTIFIED TOTALS As of Supplement 54 235-CITY OF PORT ARTHUR Property Count:730 ARS Approved Totals 4/8/2019 8:38:13AM LLand Value HonleSite: 93,520 Non Homealte: 1,485,130 Ag Market: 0 Timber Market: 0 Total Land (+) 1,578,650 Improvement Value Homesite: 2,807,380 Non Homesite: 19,144,120 Total Improvements (+) 21,951,500 Non Real Count Value Personal Property: 0 0 Mineral Property: 0 0 Autos: 0 0 Total Non Real (+) 0 Market Value 23,530,150 Ag Non Exempt Exempt I Total Productivity Market: 0 0 Ag Use: 0 0 Productivity Loss (-) 0 Timber Use: 0 0 Appraised Value = 23,530,150 Productivity Loss: 0 0 Homestead Cap (-) 30,680 Assessed Value = 23,499,470 Total Exemptions Amount (-) 17,725,483 (Breakdown on Next Page) Net Taxable = 5,773,987 Freeze Assessed Taxable Actual Tax Ceiling Count DP 700,130 169,480 452,67 563.19 19 OV65 665,194 128,019 463.92 575.42 19 Total 1,365,324 297,499 916.59 1,138.61 38 Freeze Taxable (-) 297,499 Tax Rate 0.792000 Freeze Adjusted Taxable 5,476,488 APPROXIMATE LEVY=(FREEZE ADJUSTED TAXABLE (TAX RATE/100))+ACTUAL TAX 44,290.37=5,478,488'(0.792000/100)+916.59 Tax Increment Finance Value: 0 Tax Increment Finance Levy: 0.00 235/235 Page 1 of 9 True Automation,Inc. Jefferson County County 2012 CERTIFIED TOTALS As of Supplement 54 235-CITY OF PORT ARTHUR Property Count:730 ARB Approved Totals 4/812019 8:38:14AM Exemption Breakdown IExemption CountLocal tate p69 DP 22 475,970 0 475,970 DV1 1 0 5,000 5,000 EX 222 0 16,232,750 18,232,750 EX(Prorated) 5 0 22,263 22,263 • HS 75 499,850 0 499,850 OV65 21 489,650 0 489,650 Totals 1,465,470 16,260,013 17,725,483 235/235 2 of 9 " True Automation,Inc. Jefferson County County 2012 CERTIFIED TOTALS As of Supplement 54 235-CITY OF PORT ARTHUR Property Count:730 Grand Totals 4/8/2019 8:38:13AM Land Value Homesite: 93,520 Non Homesite: 1,485,130 Ag Market: 0 Timber Market: 0 Total Land + ( ) 1,578,650 Iimprovement Value Homesite: 2,807,380 Non Homesite: 19,144,120 Total Improvements (+) 21,951,500 I Non Deal Count Value I Personal Property: 0 0 Mineral Property: 0 0 Autos: 0 0 Total Non Real (+) 0 Market Value = 23,530,150 I Ag Non Exempt Exempt I Total Productivity Market: 0 0 Ag Use: 0 0 Productivity Loss (-) 0 Timber Use: 0 0 Appraised Value = 23,530,150 Productivity Loss: 0 0 Homestead Cap (-) 30,680 Assessed Value = 23,499,470 Total Exemptions Amount (-) 17,725,483 (Breakdown on Next Page) Net Taxable = 5,773,987 Freeze Assessed Taxable Actual Tax Ceiling Count DP 700,130 169,480 452.67 563.19 19 OV65 665,194 128,019 463.92 575.42 19 Total 1,365,324 297,499 916.59 1,138.61 38 Freeze Taxable (-) 297,499 Tax Rate 0.792000 Freeze Adjusted Taxable 5,476,488 APPROXIMATE LEVY=(FREEZE ADJUSTED TAXABLE"(TAX RATE/100))+ACTUAL TAX 44,290.37=5,476,488'(0.792000/1 00)+916.59 Tax Increment Finance Value: 0 Tax Increment Finance Levy: 0.00 235/235 Page 3 of 9 True Automation,Inc. Jefferson County County 2012 CERTIFIED TOTALS As of Supplement 54 235-CITY OF PORT ARTHUR Property Count:730 Grand Totals 4/8/2019 8:38;14AM Exemption Breakdown I Exemption Count Coca! State Total I DP 22 475,970 _ 0 475,970 DV1 1 0 5,000 5,000 EX 222 0 16,232,750 16,232,750 EX(Prorated) 5 0 22,263 22,263 HS 75 499,850 0 499,850 OV65 21 489,650 0 489,650 Totals 1,465,470 16,260,013 17,725,483 a 235/235 Page 4 of 9 True Automation,Inc. Jefferson County County 2012 CERTIFIED TOTALS As of Supplement 54 235-CITY OF PORT ARTHUR Property Count:730 ARB Approved Totals 4/8/2019 8:38:14AM State Category Breakdown State Code Description Count Acres New Value Market Value Taxable Value I A SINGLE FAMILY RESIDENCE 132 $383,890 $4,017,210 $2,583,827 8 MULTIFAMILY RESIDENCE 5 $0 $186,150 $122,624 C VACANT LOT 284 $0 $307,950 $307,238 F1 COMMERCIAL REAL PROPERTY 86 $161,630 $2,714,519 $2,694,426 F2 INDUSTRIAL REAL PROPERTY 1 $0 $49,890 $49,890 X TOTALLY EXEMPT PROPERTY 225 $318,160 $16,254,431 $16,011 Totals 0,0000 $863,680 $23,530,150 $5,774,016 235/235 Page 5 of 9 True Automation,Inc. Jefferson County County 2012 CERTIFIED TOTALS As of Supplement 54 235-CITY OF PORT ARTHUR Property Count:730 Grand Totals 4/8/2019 8:38:14AM State Category Breakdown State Code Description Count Acres New Value Market Value Taxable Value A SINGLE FAMILY RESIDENCE 132 $383,890 $4,017,210 $2,583,827 B MULTIFAMILY RESIDENCE 5 $0 $186,150 $122,624 C VACANT LOT 284 $0 $307,950 $307,238 F1 COMMERCIAL REAL PROPERTY 86 $161,630 $2,714,519 $2,694,426 F2 INDUSTRIAL REAL PROPERTY 1 $0 $49,890 $49,890 X TOTALLY EXEMPT PROPERTY 225 $318,160 $16,254,431 $16,011 Totals 0.0000 $863,680 $23,530,150 $5,774,016 235/235 Page 6 of 9 True Automation,Inc. Jefferson County County 2012 CERTIFIED TOTALS As of Supplement 54 235 -CITY OF PORT ARTHUR Property Count:730 ARB Approved Totals 4/8/2019 8:38:14AM CAD State Category Breakdown IState Code Description Count Acres New Value Market Value Taxable Value I Al REAL,RESIDENTIAL,SINGLE-FAMIL 132 $383,890 $4,017,210 $2,583,827 B2 REAL, RESIDENTIAL,APARTMENTS 5 $0 $186,150 $122,624 Cl REAL,VACANT PLATTED RESIDENTI 117 $0 $120,990 $120,990 C2 REAL,VACANT PLATTED COMMERCI, 164 $0 $185,410 $185,410 CC VACANT CITY PROPERTY 2 $0 $910 $356 CJ REAL VACANT JEFFERSON COUNTY 1 $0 $640 $482 DC ACRES CITY PROPERTY 1 $0 $223,280 $0 Fl REAL,Commercial 86 $161,630 $2,714,519 $2,694,426 F2 REAL, Industrial 1 $0 $49,890 $49,890 X 224 $318,160 $18,031,151 $16,011 Totals 0.0000 $883,680 $23,530,150 $6,774,016 235/235 Page 7 of 9 True Automation,Inc. Jefferson County County 2012 CERTIFIED TOTALS As of Supplement 54 235-CITY OF PORT ARTHUR Property Count:730 Grand Totals 4/8/2019 8:38:14AM CAD State Category Breakdown I State Code Description Count Acres New Value Market Value Taxable Value Al REAL,RESIDENTIAL,SINGLE-FAMIL 132 $383,890 $4,017,210 $2,583,827 B2 REAL,RESIDENTIAL,APARTMENTS 5 $0 $186,150 $122,624 Cl REAL,VACANT PLATTED RESIDENT' 117 $0 $120,990 $120,990 C2 REAL,VACANT PLATTED COMMERCI. 164 $0 $185,410 $185,410 CC VACANT CITY PROPERTY 2 $0 $910 $356 CJ REAL VACANT JEFFERSON COUNTY 1 $0 $640 $482 DC ACRES CITY PROPERTY 1 $0 $223,280 $0 Fl REAL,Commercial 86 $161,630 $2,714,519 $2,694,426 F2 REAL, Industrial 1 $0 $49,890 $49,890 X 224 $318,160 $16,031,151 $16,011 Totals 0.0000 $863,680 $23,530,150 $5,774,016 235/235 Page 8 of 9 True Automation,Inc. Jefferson County County 2012 CERTIFIED TOTALS As of Supplement 54 235-CITY OF PORT ARTHUR Property Count:730 Effective Rate Assumption 4/8/2019 8:38:14AM New Value TOTAL NEW VALUE MARKET: $863,680 TOTAL NEW VALUE TAXABLE: $374,732 New Exemptions Exemption Description Count EX Exempt 6 2011 Market Value $154,860 ABSOLUTE EXEMPTIONS VALUE LOSS $154,860 Exemption Description Count Exemption Amount DP Disability 1 $18,940 HS Homestead 2 $20,466 OV65 Over 65 1 $25,000 PARTIAL EXEMPTIONS VALUE LOSS 4 $64,406 NEW EXEMPTIONS VALUE LOSS $219,266 Increased Exemptions Exemption Description Count Increased Exemption Amount INCREASED EXEMPTIONS VALUE LOSS TOTAL EXEMPTIONS VALUE LOSS $219,268 New Ag/Timber Exemptions New Annexations New Deannexations Average Homestead Value Category A and E Count of HS Residences Average Market Average HS Exemption Average Taxable 72 $37,025 $7,181 $29,844 Category A Only Count of HS Residences Average Market Average HS Exemption Average Taxable 72 $37,025 $7,181 $29,844 Lower Value Used Dunt o Proteste rope es Total Market Value Total Value Used 235/235 Page 9 of 9 True Automation,Inc.