Title
Annual update regarding the status of Reinvestment Zone Number One, also known as the Falcon Pointe TIRZ.
Summary
The Falcon Pointe TIRZ was created in 2011 and the Final Project Plan and Reinvestment Zone Plan was adopted on November 12, 2011. These plans establish the projects, the parties responsible for them and the priorities for reimbursement for the expenses incurred.
Status
The purpose of this item is to provide an update regarding the activities associated with the TIRZ. The Zone is nearly 400 acres, and generally located along the east side of SH 130 between East Pflugerville Parkway and Kelly Lane.
The tax increment base was established upon creation of the district and is approximately $5.9 million. As development occurs within the Zone and the total appraised value increases, the difference is referred to as the increment. The increment is used pay for direct expenses of the TIRZ, which are currently minimal, and to service debt that is anticipated to be issued to reimburse for the investment in projects identified in the project plan. Appraised values in the TIRZ have increased from $23.7 million as of January 1, 2013 to $67.8 million as of January 1, 2014. The city was notified in August 2015 that the certified value on January 1, 2015 was $118.1 million. The resulting increment therefore is approximately $112.2 million.
Since the TIRZ was established, development has been focused on housing. Single-family residential construction in Falcon Pointe has generated 547 starts at a value of $73 million though the end of June 2015. A total of 462 units have been completed at a value of $60 million.
The infrastructure projects identified in the Project Plan have been completed, including but not limited to construction of Lone Star Blvd. and the southern portion of Colorado Sand Drive, and the widening of East Pflugerville Parkway by the developer. The City funded the construction of the northern portion of Colorado Sand Drive as well as Copper Mine Drive and Autumn Slate Drive.
Fiscal Impact
In accordance with the Project Plan and Reinvestment Zone Financing Plan, the City maintains fiscal responsibility of the Zone and carries expenses associated with the Zone until approved for reimbursement by the Zone Board. The City receives property taxes based on the base value of $5.9 million only for the life of the TIRZ. Based on the current value of the TIRZ, approximately $600,000 will go to the TIRZ fund in FY16.
Staff Recommendation
This item is being presented for discussion only.
Drafter
Trey Fletcher, AICP
Assistant City Manager