Title
Approving an ordinance on second reading with the caption reading: AN ORDINANCE OF THE CITY OF PFLUGERVILLE, TEXAS, APPROVING THE PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN FOR REINVESTMENT ZONE NUMBER ONE, CITY OF PFLUGERVILLE, TEXAS; AUTHORIZING THE CITY SECRETARY TO DISTRIBUTE SUCH PLANS; CONTAINING VARIOUS PROVISIONS RELATED TO THE FOREGOING SUBJECT.
Summary
The City Council conducted a public hearing and approved the ordinance on first reading at their regular meeting on November 8, 2011. The Tax Increment Reinvestment Zone (TIRZ) Board approved the project plan and reinvestment zone financing plan on October 19, 2011, subject to approval of the same by the City Council. The project plan proposes capital improvements to be implemented by the City of Pflugerville and Newland Communities (developer). City projects include the extension of Colorado Sand Drive south from Kelly Lane, with connectivity to Murchison Elementary and FM 685. Developer projects include the the extension of Colorado Sand Drive northwest from Pflugerville Parkway and the construction of Lonestar Blvd into Falcon Pointe subdivision. In order to support further development of the area, the project plan also includes a lift station and semi-regional detention pond. The segment of Colorado Sand Drive (Segment B Phase 2) between the City's portion and the Developer's portion is included, but construction is not anticipated at this time. The projects are shown on Exhibit D within the plan and as a result would be eligible for reimbursement.
The reinvestment zone financing plan includes elements required by statute: the estimated project costs within the Zone, which is $12,500,000; an economic feasibility study; an estimate of bonded indebtedness; an estimate of time when costs and monetary obligations are incurred; and, a method of financing. The current appraised value of real property in the zone based on 2010 certified values is $6,554,896. The estimated captured appraised value is projected to be approximtely $393,424,188 at the end of the life of the Zone based on the pro forma provided by Newland Communities. The duration of the zone is 30 years.
Prior City Council Action
At their regular meeting on October 12, 2010, the City Council took action to instruct staff to enter into negotiations with Newland Communities to draft/structure an agreement for the proposed TIRZ. The City Council discussed the matter again at a special meeting on November 2, 2010, and instructed staff to enter into final negotiations with Newland Communities to create the Tax Increment Reinvestment Zone and to publish notice of public hearing for the next Council meeting. A public hearing was advertised in the Pflugerville Pflag on November 11, 2010 and was held on November 23, 2010. The City Council approved the ordinance on first reading on November 23, 2010 and approved the ordinance on second and final reading on December 14, 2011. At their meeting on June 28, 2011, the City Council discussed the draft project plan and reinvestment zone financing plan with Mr. Rainer Ficken of Newland Communities. The TIRZ Board presented the project plan and reinvestment zone financing plan to the City Council at the October 25, 2011 Worksession. This ordinance was approved on first reading on November 8, 2011.
Deadline for City Council Action
None.
Fiscal Impact
Base property values for this TIRZ were established as of December 31, 2010. As development occurs in the TIRZ, property value increases. The property tax revenues above those revenues attributed to the base property values are paid to the reinvestment zone until December 31, 2041. The City may extend or shorten the length of the TIRZ. The City will be reimbursed by the TIRZ for public improvements made by the City within the designated areas of the TIRZ.
Staff Recommendation
Approve the ordinance on second reading.
Drafter
Trey Fletcher, AICP
Assistant City Manager