Title
Conduct a Public Hearing to Consider/Discuss/Act on an Ordinance Approving the Creation of Tax Increment Reinvestment Zone No. 1 in McKinney (also known as the Town Center 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
Mark Houser, City Attorney
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. 1 Board of Directors.
ITEM SUMMARY:
• The proposed Tax Increment Reinvestment Zone No. 1 (TIRZ No. 1) consists of approximately 950 acres of property generally within the historic Town Center of McKinney and along State Highway 5 from US 380 to the Spur 399/US 75 interchange (see Exhibit A).
• As proposed, TIRZ No. 1 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 $139 million in potential TIRZ No. 1 revenues over the 30-year life of the zone.
• As outlined in the Preliminary Project Plan, TIRZ No. 1 will provide support for catalytic infrastructure and projects that support continued revitalization of the Historic Town Center; link the Town Center across Highway 5 to the proposed future Transit-Oriented Development (TOD) around the future rail transit station; provide infrastructure and development support for the TOD; support the street and other infrastructure needed for the safe and pedestrian-oriented transportation circulation needed within the historic core of the Town Center; improve and remediate key locations that have suffered from historic industrialization; and provide other support allowed by law for the redevelopment of the Town Center within the proposed zone.
• TIRZ No. 1 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. 1:
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. 1.
• 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. 1 (see Draft Participation Agreement with Collin County).
• Staff is now seeking City Council’s support of an Ordinance approving the creation of TIRZ No. 1 in McKinney and establishing a Board of Directors for the Reinvestment Zone.
BACKGROUND:
• As part of Phase 2 of the Town Center Study Initiative, over the past year, City Staff and the consultant team have been evaluating the feasibility of potential fiscal tools, including the creation of a Tax Increment Reinvestment Zone (TIRZ), to encourage economic development and redevelopment in McKinney’s Town Center.
• Per comments received by Mayor Loughmiller at the March 15th City Council Work Session, the evaluation of potential fiscal tools was expanded to include targeted implementation of a Tax Increment Reinvestment Zone in support of Phase 2 of the Town Center Study Initiative.
• As such, 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 a TIRZ in McKinney’s Town Center (known as TIRZ No. 1).
• 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. 1.
• Staff and the consultant team also provided written notice to property owners within the proposed TIRZ and hosted a public stakeholder meeting on August 11th. Approximately 50 stakeholders attended the meeting.
• TIRZ implementation will continue to be performed on a parallel track with the regulatory analysis and continued development of the Town Center-specific business plan.
• For more information about the Town Center Study Initiative, visit the McKinney homepage at www.mckinneytexas.org <http://www.mckinneytexas.org> and click on the Town Center Study link under the “I Am Looking For” tab on the right-hand side.