Title
Discuss and consider action to approve the Development Financing Agreement By and Among the City of Pflugerville, Texas, Reinvestment Zone Number One (Falcon Pointe TIRZ) and Terrabrook Falcon Pointe, L.P.
Summary
In accordance with Section 311.010(b) of the Texas Tax Code, the board of directors of a reinvestment zone and the governing body of the municipality or county that creates a reinvestment zone may each enter into agreements as the board or the governing body considers necessary or convenient to implement the project plan and reinvestment zone financing plan and achieve their purposes.
The attached development financing agreement was approved by the board on January 11, 2012, subject to the consent of the City Council. The agreement provides for the process for the development of projects in the approved project plan subject to reimbursement, the financing and reimbursement of project costs, and city, zone and developer convenants, as well as other general provisions.
Deadline for City Council Action
Action is requested on January 24, 2012.
Projected Future City Council Action
No additional action regarding this item is anticipated.
Fiscal Impact
The city no longer receives property taxes based on the tax increment generated as a result of the creation of the zone, which is the difference between the appreciated value and the base value within the zone. Instead, this increment is used to support the funding of projects in the zone as well as operation of the zone. The attached agreement establishes a priority flow of funds, as follows:
(1) Five percent of Tax Increment to pay City administrative expenses, as described in the Plan.
(2) City service payments equal to $250 per single family residence in the Zone, whereas town homes and multi-family units are counted as 70 percent of a residential unit.
(3) Other reasonable operating and administrative expenses of the Zone not covered by the City’s five percent administrative fee, including, but not limited to reasonable attorney’s fees.
(4) Debt service payments, including reserve fund requirements, paying agent and trustee fees and other related Bond costs, with respect to outstanding Bonds.
(5) Remaining funds (the “Available Funds”) available for commitment to future Bonds and available for direct payment to the Developer and the City in accordance with this Article.
(6) At the City’s option, any amounts due and payable under this Agreement against any debt (including taxes) lawfully due and owing to the City from the Developer regardless of whether the amount due arises pursuant to the terms of this Agreement or otherwise, and regardless of whether of not the debt has been reduced to judgment by a court.
Staff Recommendation
This agreement was approved by the Falcon Pointe TIRZ Board on January 11, 2012 and has recommended its approval by the City Council.
Drafter
Trey Fletcher, Assistant City Manager