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Min 12/02/1986 (2) 394 Wichita Falls, Texas Capitol Center, 624 Indiana December 2, 1986 Items 1 & 2 The City Council of the City of Wichita Falls, Texas, met in called !session on the above date in the Capitol Center, 624 Indiana, at 5:30 o'clock P.M. , with the following members present. j Charles Harper Mayor Sandy Goff Ruth Ann Allred Don Kirkham Councilmen Charles Thomas I James Berzina City Manager H. P. Hodge City Attorney Wilma J. Thomas City Clerk Ron Buffum Absent Lindsey Walker Absent Fred L. Werner Absent The following school board members and other representatives of the Wichita Falls Independent School District, were present, as follows: Don Wills, Bill Spears, John Wurster, Ruth Terry, Joey Aboussie, Roy Sparkman, ,Sue McAlister, Lee Williamson, and Roger Lee. Nick Gipson represented the County. - - - - - - d The invocation was given by Roy Sparkman. Item 3 Mayor Harper stated that the meeting was called for discussion of the river development, land tax increment financing. City Manager James Berzina discussed the project as a whole, stating that it is a public/private development. Tax increment financing is a tool to make this thing come about. They talked about federal grants. We will have to grab on to all the tools we can find, if the riverwalk project is to become a reality. The low water dam is to set a level of the water to make its use practical . A majority of this money has been set aside to purchase property for this project. We should have 1 .6 million to use for this purpose. We really don' t know what the costs will be at this time. Digging two canals will be an expensive undertaking. Along these canals will be private development. It was said in studies that it would be a six million dollar project, exclusive of land purchase. A hospital district was viewed as an important part of this project. Somewhere down the line, it will take a lot of dollars to complete it, and we are probably talking about some kind of bond issue to finish the project. We will probably continue piece meal development. Jeanie Thompson, Assistant City Attorney, stated that tax increment financing was created by the Tax Increment Financing Act of 1981 , for areas which are blighted, or in need of revitalization. It generates sales tax and creates jobs. The process begins by the creation of a zone. A Board of Directors is set up, who then formulates a financing plan. We can acquire property for private development. First, you establish a base as redevelopment occurs. That property goes into the base. The fund is to pay for project costs. A zone must end when the project plan is completed, and all project debts are paid. You cannot have more than ten percent residential property in the zone. She discussed the theory of tax increment financing in compre- hensive economic development. We will either amend, the map, or the field notes, to make it match. Immediate concerns were addressed. Appointment of a Board of Directors is needed. The County and School District would have one member each, and the City would appoint three members. These members 395 must be a registered voter in Wichita Falls, or at least eighteen years of age, and own property in the district. The City will appoint a Chairman, and the board selects the other officers. The Board prepares and adopts a project plan. The project financing plan must be complete by 1989. Bernice Prchal , of the Planning Department, stated that the zone does exist now. She addressed the ten percent residential requirements, along with the fifteen percent of total appraised value. She also addressed the tax increment base, stating that there are 873 properties in the zone. In discussing captured appraised value, she stated that only the tax value of the property is frozen. Tax rates will not be frozen. The tables were prepared, based on three percent projected increase in land value. Mr. Sparkman asked if the land is now owned by private business where you receive revenue off the two million dollars, what would be the City' s projected figures? Mr. Wurster also had some questions, and Mrs. Terry asked about the hospital district. She also asked how they arrived at five members on the Board instead of seven? Charles Harper, Mayor, explained that that is just the way it was set up. She stated that it is somewhat ludicrous for the school and the county to cooperate, and only have one member each. Councilman Thomas pointed out that the school district is also the City of Wichita Falls. Mrs. Terry noted that while this is true, she represents the school district. Mrs. McAlister asked if there is an objection to the school spending this money on educational facilities? Charles Harper, Mayor, stated that if it is defined in a broad plan, they could. It is too late this year to make any changes. Charles Harper, Mayor, emphasized that the Tax Increment Financing Board is a very hard working board. Mr. Sparkman asked questions about the educational funds. Charles Harper, Mayor, noted that the board has free reign to come up with a plan they want. The Council will have to approve it. He believes they will , but he cannot say for sure. Mr. Wurster asked what would be wrong with having a bond issue at first? Charles Harper, Mayor, noted that nothing would be wrong with it, but it would be defeated because people would say that they do not know what it will cost. He further stated that the City has to progress. They feel like this is the best way to go about it. He stated that the citizens will speak in the April election before anything is done. Mrs. Terry went on record as being opposed to it. She feels that she was elected as a steward of the school ' s funds. Charles Harper, Mayor, stated that the legislature believes the schools should have a part in the economic development of the city. Mrs. McAlister stated that she feels that the bond issue on rejuvenating the schools is certainly considered an economic development to the city. She asked if there is a preliminary plan? Charles harper, Mayor, stated that they are in the process of putting together the preliminary plan before the deadline of July 1 . Jeanie Thompson stated that it cannot be done by December 16 to include educational facilities, but the plan could be amended later. Charles Harper, Mayor, stated that he believes the Council feels very strongly that the hospital district needs to be a part of tax increment financing. Mr. Aboussie asked for comparison purposes, what has happened in apprec- iated values in the tax increment financing area? Charles Harper, Mayor, stated that he believes that the three percent would be a maximum. Councilman Thomas stated that none of the property in that area has changed for several years, other than the hospital district. Charles Harper, Mayor, noted that the hospital district actually went down last year. Mr. Sparkman opposed putting the hospital district in the tax increment financing zone. Mrs. McAlister confirmed that a public hearing will be held on December 16. Mr. Aboussie stated that he would like to know, for comparison purposes , what has happened in the last twenty years. Mrs. Prchal stated that she did not know how much it has changed. What seems to be at risk is what 396 Item 3 (Cont. ) ;would appreciate normally. Mr. Wurster stated that a lot of development Chas gone on without tax increment financing. Charles Harper, Mayor, and ';Councilman Thomas stated that it had been promised to them because they ' knew it was coming. Councilman Thomas noted that there has been a tremendous loss of business in that area in the last twenty years. Mr. Wills assumed that the City Council would have a considerable amount of influence over these three appointments. He asked about equal represent- ation from the school board. Charles Harper, Mayor, stated that if the board that is appointed requests equal representation for the school , then the City Council will consider it. Mr. Wills also asked that the Council ,consider a school revenue loss for educational purposes, as long as it is , broadly defined. Mr. Wills stated that they appreciate the Council coming to them. Their main concern is that they represent the school children ! of Wichita Falls, and the voters, as far as taxes go. They want a first-class ieducational system. Training the minds of those children is probably the , best municipal improvement they have made. If this goes into effect, he plans to make it work. They feel like they need additional representation ; on the board. He stated that he realizes that the City will put in more ,money than the school , with a bond issue. The school will opt for the fifteen ; percent, and probably the County. Councilman Thomas stated that it makes him feel good for the school 'board to watch the money for the school kids, but with this increment they may be about to build more schools. The City Council and school/board adjourned at 7:00 o'clock P.M. PASS AND APPROVED this �� � da of f , 1 886 "trper. ayor ATTEST: Wilma J. Thomas, CMC, City Clerk 397 Wichita Falls, Texas Memorial Auditorium Building December 9, 1986 Items 1 & 2 The City Council of the City of Wichita Falls, Texas, met in called session on the above date in the Council Room of the Memorial Auditorium Building at 9:00 o'clock A.M. , with the following members present. Charles Harper Mayor Sandy Goff Ruth Ann Allred Charles Thomas Councilmen Lindsey Walker Ronald Buffum Don Kirkham James Berzina City Manager H. P. Hodge City Attorney Wilma J. Thomas City Clerk Fred L. Werner Chief Accounting Officer The invocation was given by Councilman Walker. The City Council recessed into executive session at 9:02 A.M. , according to Subdivision (f) of the Texas Open Meetings law. The meeting resumed at 11:40 A.M. Item 3 Charles Harper, Mayor, stated that the Council has been considering an offer that we want to make to landowners for purchase of land for proposed Ringgold Reservoir. Mr. Berzina stated that it is our intention to try to have something back to the City Council a week from today. Some of these conditions will have to be discussed with the landowners to see if they agree. They are talking about purchasing approximately 6,500 acres of property. In building a reservoir, you have to provide for a flowage easement. This is the land above the spillway. You also have to acknowledge that at particular times you will be over that. Our calculations show an additional 900-1 ,000 acres of property for a flowage easement, for a total of about 7,500 acres. It is our intention to make an offer of $520.00 per acre. On the unpaid balance on this property, we are talking about one-third down, and the remaining two-thirds over a three to ten-year cycle. They anticipate six percent interest on the unpaid balance, with the option that it can be paid off at any time. They are looking at a lease agreement with the owner where it could be leased back to the present owners, with a first right of refusal on the property. They would lease back from the City this property. It was noted that $520.00 per acre includes everything. Charles Harper, Mayor, suggested that Mr. Berzina take this information back to the landowners, and come back next Monday with a proposal they can vote on. The total purchase price is 3.9 million dollars. This property is about one-half of the property needed for the Ringgold project. Periodic contributions would be made from the West Texas Utility Company account. That present balance is 1.5 million dollars in this fund. Next year we will be receiving one-quarter million dollars from this property. Councilman Thomas noted that he is not the chief negotiator for this property. He is the chief errand boy. The Council has done the negotiating. The City Council adjourned at/11 :50 A.M. PASSED AND APPROVED this ��° day of 1986. Char s Harper, MY* ATTEST: A-� Wilma J. Thomas, CMC, City Clerk