Title
Consider/Discuss/Act on a Resolution Approving the Project Plan and Financing Plan for Tax Increment Reinvestment Zone Number Two
Summary
MEETING DATE: November 16, 2010
DEPARTMENT: Development Services - Planning Department
CONTACT: Jim Parrish, Deputy City Manager
Mark Houser, City Attorney
John Kessel, Executive Dir. of Development Services
Jennifer Cox, AICP, Director of Planning
Kevin Spath, AICP, CFM, Senior Long Range Planner
RECOMMENDED CITY COUNCIL ACTION: Approval of A Resolution approving the Project Plan and Financing Plan for TIRZ Number Two.
ITEM SUMMARY:
• On September 21, 2010 the McKinney City Council created Tax Increment Reinvestment Zone Number Two (“Airport TIRZ”), consisting of approximately 3,617 acres generally in and around the Collin County Regional Airport (“Airport”) from approximately US 380 to the southeastern city limits of McKinney (see Ordinance Number 2010-09-035 and as amended by Ordinance Number 2010-10-041).
• On October 19, 2010, the Board of Directors for TIRZ Number Two had its first meeting and unanimously passed a resolution adopting the Project Plan and Financing Plan for the Zone. Pursuant to Section 3(e) of Ordinance Number 2010-09-035, the Board of Directors is required to submit the Project Plan and Financing Plan to the City Council for final approval.
• The Project Plan and Financing Plan, as presented to the public and the Airport Development Corporation and considered by the City Council for the creation of the TIRZ, provides for the design and construction of the roadway infrastructure necessary to access the Airport (i.e., the perimeter north/south roadway along the eastern side of the Airport and the extension/relocation of FM 546).
BACKGROUND INFORMATION:
• The creation of a TIRZ to support the Collin County Regional Airport was proposed as part of the ongoing investment in the Airport to serve the regional needs of Collin County and the greater D/FW Metroplex.
• After developing a preliminary Project Plan and preliminary Financing Plan through a City Council TIRZ Committee in coordination with the Airport Development Corporation and the public process, the City has carried out the necessary steps for the creation of the TIRZ including the creation of the Board of Directors for the TIRZ in accordance with Chapter 311 of the Texas Tax Code.
• The authority of the Board of Directors is established by the City Ordinance Number 2010-09-035 creating the TIRZ. Board authority includes the making of recommendations to the City Council concerning the administration of the TIRZ; and adopting (and amending as needed in the future) a project plan and financing plan consistent with the preliminary project plan and finance plan subject to final approval by the City Council.
FINANCIAL SUMMARY:
• TIRZ revenues will be collected for 30 years from 100% of City property taxes generated above the baseline year assessed property values as of 2010, as well as 100% of City sales taxes above the value of the baseline year of 2010.
• TIRZ revenues will also be collected from 50% of County property taxes generated above the baseline year assessed property values as of 2010, subject to final execution of the Interlocal Participation Agreement with Collin County.
• Projected tax revenues to be collected by the TIRZ will total an estimated $40.66 Million by the 30th year of the TIRZ in 2040.
• The City Council has created the TIRZ with the primary intention of providing a long-term financing mechanism for critical transportation infrastructure to support the Airport. Accordingly, the City Council policy in creating the TIRZ was based on the priority to collect and retain revenues in the TIRZ for aggregation to facilitate long-term financing.
BOARD RECOMMENDATION:
• On October 19, 2010, the Board of Directors for TIRZ Number Two had its first meeting and unanimously passed a resolution adopting the Project Plan and Financing Plan for the Zone. Pursuant to Section 3(e) of Ordinance Number 2010-09-035, the Board of Directors is required to submit the Project Plan and Financing Plan to the City Council for final approval.