Title
Conduct a Public Hearing to Consider/Discuss/Act on an Ordinance Approving the Creation of Tax Increment Reinvestment Zone No. 2 in McKinney (also known as the Airport TIRZ) and Establishing a Board of Directors for the Reinvestment Zone
Summary
MEETING DATE: September 21, 2010
DEPARTMENT: Development Services - Planning Department
CONTACT: Jim Parrish, Deputy City Manager
Kenneth Wiegand, AAE, Executive Director of CCRA
John Kessel, Executive Director of Development Services
Jennifer Cox, AICP, Director of Planning
Kevin Spath, AICP, CFM, Senior Long Range Planner
RECOMMENDED CITY COUNCIL ACTION:
• Approval of the Ordinance and appointment of the TIRZ No. 2 Board of Directors.
ITEM SUMMARY:
• The proposed Tax Increment Reinvestment Zone No. 2 (TIRZ No. 2) consists of approximately 3,617 acres of property generally in and around the Collin County Regional Airport from approximately US 380 to the southeastern City Limits of McKinney (see Exhibit A).
• As proposed, TIRZ No. 2 revenues will be generated through the dedication of all eligible City ad valorem tax, all eligible City sales tax (1%), and 50% of eligible County ad valorem tax, over the baseline year, on properties and taxpaying entities within the proposed zone.
• Collectively, 100% City participation in both ad valorem and sales tax (1%) combined with 50% County participation in ad valorem tax are estimated to yield a cumulative value of $40.66 million in potential TIRZ No. 2 revenues over the 30-year life of the zone.
• As outlined in the Preliminary Project Plan, key project initiatives in TIRZ No. 2 will be the investment in the roadway infrastructure necessary to access the Airport (i.e. the perimeter north/south roadway along the eastern side of the Airport and FM 546).
• TIRZ No. 2 will be governed by a Board of Directors, which is proposed to consist of 11 members, including 8 members appointed by the McKinney City Council and 1 member appointed by each of the participating taxing jurisdictions. However, participating taxing jurisdictions have the right to waive an appointment to the Board of Directors.
• In accordance with Chapter 311 of the Texas Tax Code, Staff and the consultant team (in conjunction with the TIRZ Committee) have carried out the following tasks associated with creating TIRZ No. 2:
o Prepared a Preliminary Project Plan (Exhibit B);
o Prepared a Preliminary Plan of Finance (Exhibit C);
o Provided written notice to the governing body of all taxing units levying taxes on property within the proposed zone; and
o Obtained waivers from all taxing units within the boundary of the proposed zone.
• On August 16th, Staff and the consultant team presented an update to the Collin County Commissioners Court on the preliminary work associated with the creation of TIRZ No. 2.
• Staff and the consultant team will present a subsequent update to the Collin County Commissioners Court in October to request the formal participation of Collin County in TIRZ No. 2 (see Draft Participation Agreement with Collin County).
• Staff is now seeking City Council’s support of an Ordinance approving the creation of TIRZ No. 2 in McKinney and establishing a Board of Directors for the Reinvestment Zone.
BACKGROUND:
• Since April 2010, City Staff and the consultant team have met on a monthly basis with the City Council TIRZ Committee (comprised of Mayor Loughmiller and Council Members Day and Ussery) to review and discuss the on-going activities associated with creating Tax Increment Reinvestment Zones in McKinney.
• Based on direction from Mayor Loughmiller, Council Member Ussery, and Council Member Day at the May 5th TIRZ subcommittee meeting, Staff and the consultant team began the analysis and creation of a Tax Increment Reinvestment Zone for the Collin County Regional Airport and its environs (known as TIRZ No. 2).
• TIRZ No. 2 analysis and implementation was performed on a parallel track with the TIRZ No. 1 analysis and implementation.
• On August 2nd, Staff and the consultant team presented an update to the City Council on the preliminary work associated with the creation of TIRZ No. 2.
• Staff and the consultant team also provided written notice to property owners within the proposed TIRZ and hosted a public stakeholder meeting on August 12th. Approximately 50 stakeholders attended the meeting.