TIF #2 Board of Directors Minutes - 10/05/2005CITIZENS ADVISORY COMMITTEE
PROPOSED TAX INCREMENT FINANCING ZONE #2
M I N U T E S
OCTOBER 5, 2005
Members:
Ben Filer, Chairman
Ann Bishop
Al Flack, Jr.
Susan Plies
James Welburn
Charles Elmore, Council Liaison
David A. Clark, Director of Community Development
Karen Gagne, Planner III
Darron Leiker, City Manager
Scott Taylor, Director of Public Works
Others Present:
Andy Lee — Andy Lee Co./Blackburn Properties
John Hirschi
Call to Order
Chairman Filer called the meeting to order at 4:05 p.m.
II. Approval of Minutes
Mr. Flack introduced a motion to approve the minutes from the August 8, 2005
meeting as submitted; Mr. Welburn seconded. The minutes were approved
unanimously.
III. Review & Approval of Development Agreement — Blackburn Properties
Mr. Clark provided an overview of the agreement components and indicated that staff
had discussed the agreement in detail with City Council on July 14t", 2005, and
numerous times with the developer. The developer is seeking to construct a shopping
center complex in the southern portion of the TI F #2 District and they are prepared to
move forward. The Plan (page 35/36) included two phases of development for this
project, but staff was informed the project would be completed in one phase and the
estimated value would be higher than anticipated.
Mr. Clark outlined some minor changes discussed with the developer earlier that day.
The developer will be referenced as `McGrath Creek Crossing, Ltd.' in place of
CITIZENS ADVISORY COMMITTEE - TIF #2 October 5, 2005
Blackburn Properties. He noted that the important point was that this agreement
would be leading to the commitment of the use of TIF #2 increment funds to eventually
reimburse the developer or their portion of the Maplewood Extension project.
Members requested clarification regarding the term of the contract and timing for the
increment. Mr. Clark indicated that the contract with the developer would be for a
period of four years ending September 30, 2009 or when a sufficient tax increment
was generated from that particular project if earlier.
Upon review and endorsement by this Committee, a resolution would be submitted to
Council to authorize execution of the agreement. Members questioned the
reimbursement for Maplewood and Mr. Clark explained there is an interest in
completing that public improvement while encouraging economic development. The
Plan and agreement were prepared in a manner to allow these provisions. Mr. Filer
commented that tying the reimbursement to the level of increment that the project
generates provides an incentive for the developer to complete the project. Mr. Clark
also noted that the City might seek reimbursement from TIF funds for other funding it
may have to utilize to meet desired construction schedules.
Ms. Plies inquired about the anticipated 2006/2007 tax levels. Mr. Clark responded
that the McGrath Creek Crossing developers anticipate construction spring 2006 and
completion later that year, so the project should be added to the tax rolls by late 2006.
The actual payment may not come in until 2008. The Zone is already generating an
increment very much in conformance with the Financial Plan
Mr. Clark reiterated that the developer would only receive reimbursement from the
increment generated by their development not from any other business in the Zone.
He noted that as more development occurs in the Zone, the TIF members might have
additional agreements to review and approve. Ms. Bishop questioned whether
approving the current agreement set a precedent for future projects. Both Mr. Clark
and Mr. Leiker commented that this is a unique situation since it addresses both
flooding and traffic congestion problems of concern throughout the community. These
actions are supported by the Thoroughfare Plan and the Storm Water Drainage Utility
project list. Mr. Elmore concurred that this was not a precedent.
The Chairperson called for any questions prior to a motion. Mr. Flack introduced a
motion to recommend approval of the Agreement with McGrath Creek Crossing, Ltd.
incorporating the amendments as outlined. Mr. Welburn seconded. Motion passed
unanimously.
IV. Review of Avenue Z versus Arizona Street Alignment for Maplewood
Extension
The Chairperson introduced this item and thanked Mr. Taylor, Director of Public Works
for the prompt action on the research regarding the Arizona Street alignment and
detailed memo. Mr. Clark commented the research work is still in progress and
requested Mr. Taylor provide an update for the members.
CITIZENS ADVISORY COMMITTEE - TIF #2 October 5, 2005
Mr. Taylor explained that the alternate connection resulted from an initial meeting with
Councilor Ginnings and the City Manager in an effort to reduce overall costs. The
Public Works department conducted initial research, but there are still some issues to
be addressed prior to finalizing the decision. Mr. Taylor stated that the Arizona
alternate only impacts the eastern portion of the Maplewood extension project.
Engineering staff walked through the project area with the design group and City
Property Manager to review the site, topography, constraints, etc. Mr. Taylor
anticipates that surveying will begin on the western end (McNiel) within a few weeks.
The project may have phased bidding and construction.
Councilor Elmore verified with Mr. Taylor the initial difference in cost between Ave. Z
and Arizona. Mr. Taylor stated that the Arizona option would cost approximately $2
million more than Ave. Z. Mr. Elmore questioned if anyone had approached the
School District regarding the Arizona option. Mr. Taylor noted a meeting was
arranged for Friday, October 7t" to meet with WFISD staff to discuss options. He
stated the construction of the project would move from west to east.
Andy Lee requested clarification regarding the scope of drainage project. Mr. Taylor
explained that the drainage project would include the area upstream from Sikes Lake
at Midwestern Pkwy, continuing west behind American National Bank, by the
apartments, crossing Maplewood continuing by Barwise Jr. High, under Kemp, north
of Big Five sporting goods, behind the "Olive Garden" plaza, parallel with the edge of
the transfer station, under McNiel and then under Kell to the Fountain Park
neighborhood, where it ends. The drainage improvements just within the TIF #2 Zone
may cost $600,000, however, the entire project is estimated at $2,300,000. This is the
second longest drainage project in the City.
Mr. Taylor reiterated that staff would first be discussing the Arizona Street option with
WFISD to further determine feasibility. Both Mr. Taylor and Mr. Leiker indicated that
they are aiming to have the final items addressed with the Arizona option within one
week.
V. Adjournment
Ms. Plies motioned to adjourn. Mr. Welburn seconded the motion and the vote was
unanimous. The meeting adjourned at 4:40 p.m.
Ben Filer, Chairman Date
CITIZENS ADVISORY COMMITTEE - TIF #2 October 5, 2005