HomeMy WebLinkAboutOrd 951-2021 Designating Tax Increment Reinvestment Zone #4 (TIRZ)CITY OF ANNA, TEXAS
ORDINANCE NO. q-
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF ANNA, TEXAS, DESIGNATING A GEOGRAPHIC AREA
WITHIN THE CITY AS A TAX INCREMENT
REINVESTMENT ZONE PURSUANT TO CHAPTER 311 OF
THE TEXAS TAX CODE, TO BE KNOWN AS
REINVESTMENT ZONE NUMBER FOUR, CITY OF ANNA,
TEXAS; DESCRIBING THE BOUNDARIES OF THE ZONE;
CREATING A BOARD OF DIRECTORS FOR THE ZONE
AND APPOINTING MEMBERS OF THE BOARD;
ESTABLISHING A TAX INCREMENT FUND FOR THE
ZONE; CONTAINING FINDINGS RELATED TO THE
CREATION OF THE ZONE; PROVIDING A DATE FOR
THE TERMINATION OF THE ZONE; PROVIDING THAT
THE ZONE TAKE EFFECT IMMEDIATELY UPON
PASSAGE OF THE ORDINANCE; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of Anna, Texas (the "City"), pursuant to Chapter 311 of the Texas
Tax Code, as amended (the "Act"), may designate a geographic area within the City as a tax
increment reinvestment zone if the area satisfies the requirements of the Act; and
WHEREAS, pursuant to and as required by the Act, the City Council prepared a
Reinvestment Zone Number° Four, City ofAnna, Texas, Preliminary Project and Finance Plan (the
"Preliminary Project and Finance Plan") for a proposed tax increment reinvestment zone
containing the approximately 319.01 acres described and depicted on Exhibit A attached hereto
and incorporated herein for all purposes (the "Property"); and
WHEREAS, notice of the public hearing on the creation of the proposed zone was
published in a newspaper of general circulation within the County, on December 6, 2021, which
date is not later than the seventh (7th) day before the public hearing held on December 14, 2021;
and
WHEREAS, at the public hearing on December 14, 2021, interested persons were allowed
to speak for or against the creation of the zone, the boundaries of the zone, and the concept of tax
increment financing, and owners of property in the proposed zone were given a reasonable
opportunity to protest the inclusion of their property in the zone; and
WHEREAS, evidence was received and presented at the public hearing in favor of the
creation of the zone; and
WHEREAS, the City has taken all actions required to create the zone including, but not
limited to, all actions required by the Act, the Texas Open Meetings Act, and all other laws
applicable to the creation of the zone; and
WHEREAS, the City desires to appoint initial members to the board of directors of the
zone; and
WHEREAS, terms used in this Ordinance that have their initial letters capitalized shall
have the meanings given to them in this Ordinance; however, terms that are CAPITALIZED IN
BOLD shall have the meanings given to them in the Preliminary Project and Finance Plan.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ANNA, TEXAS:
SECTION 1. FINDINGS.
(a) The recitals, findings, and determinations contained in the preamble to this Ordinance
are incorporated into the body of this Ordinance as if fully set forth in this Section and are hereby
found and declared to be true and correct legislative findings and are adopted as part of this Ordinance
for all purposes.
(b) The City Council finds that the PUBLIC IMPROVEMENTS will significantly
enhance the value of all the taxable real property in the zone and will be of general benefit to the
City.
(c) The City Council finds that the proposed zone meets the requirements of Section
311.005(a)(2) of the Act in that:
(i) there is a need for essential public infrastructure and economic development
programs to attract new business and commercial activity to the proposed
zone for the purposes of increasing the real property tax base for all taxing
units within the zone, increasing sales and use taxes for the City and the
State of Texas, and increasing job opportunities for residents of the City and
the region; and
(ii) the reinvestment zone, as shown in Exhibit A, meets the criteria for the
creation of a reinvestment zone set forth in Section 311.005 of the Act in
that the area is predominantly open or undeveloped and, because of obsolete
platting, deterioration of structures or site improvements, or other factors,
substantially impairs and arrests the sound growth of the municipality.
(d) The City Council finds that the proposed zone is a geographic area 100% within
the City's corporate limits or extraterritorial jurisdiction.
(e) The City Council finds that not more than thirty percent (30%) of the property in
the proposed zone, excluding property that is publicly owned, is used for residential purposes, and
the total appraised value of taxable real property in the proposed zone does not exceed fifty percent
(50%) of the total appraised value of taxable real property in the City and in the industrial districts
created by the City.
(f) The City Council finds that the development or redevelopment of the property in
the proposed zone will not occur solely through private investment in the reasonably foreseeable
future.
(g) The City Council finds that the Preliminary Project and Finance Plan is feasible.
(h) The City Council finds that the implementation of the Project and Finance Plan (as
defined below) will alleviate the conditions described in Section 1(c) above and will serve a public
purpose.
SECTION 2. DESIGNATION AND NAME OF THE ZONE. Pursuant to the authority of, and
in accordance with the requirements of the Act, the City Council hereby designates the Property
as a tax increment reinvestment zone. The name assigned to the zone for identification is
Reinvestment Zone Number Four, City of Anna, Texas (the "Zone"). The Zone is designated
pursuant to Section 311.005(a)(2) of the Act.
SECTION 3. BOARD OF DIRECTORS. .
3.1 The City Council hereby creates a board of directors for the Zone (the 'Board")
consisting of nine members. Seven members shall be appointed by the City Council to Places
1,2,3,4, 5, 6, and 7. Place 8 shall be appointed by the Commissioners Court of Collin County,
Texas (the "County"), if the County participates in the Zone. If the County does not participate in
the Zone, the Commissioners Court shall be deemed to have waived its right to appoint such
members and the Place goes away.
3.2 The City Council hereby appoints the following individuals to serve as the initial
members of the Board for the terms indicated:
Place 1
Mayor
(term expires December 31, 2024)
Place 2
Council Place 1
(term expires December 31, 2024)
Place 3
Council Place 2
(term expires December 31, 2022)
Place 4
Council Place 3
(term expires December 31, 2023)
Place 5
Council Place 4
(term expires December 31, 2022)
Place 6
Council Place 5
(term expires December 31, 2023)
Place 7
Council Place 6
(term expires December 31, 2022)
Place 8 shall be appointed by the County for a term that expires December 31, 2023.
Upon expiration of the indicated terms or upon City Council action to reconstitute the initial Board
by appointing replacement members, subsequent appointments to fill vacancies shall be for terms
of two years. The member appointed to Place 1 shall serve as the chairman of the Board. The Board
is authorized to elect a vice-chairman and other officers as determined by the Board.
3.3 The Board shall make recommendations to the City Council concerning the
administration, management, and operation of the Zone. The Board shall prepare or cause to be
prepared and adopted a project plan and a reinvestment zone financing plan for the Zone (the
"Project and Finance Plan") as required by the Act, and shall submit the Project and Finance Plan
to the City Council for approval. The City Council hereby delegates to the Board all powers
necessary to implement any Project and Finance Plan approved by the City Council, including the
power to employ consultants and enter into agreements that the Board considers necessary or
convenient to implement the Project and Finance Plan and to administer, operate, and manage the
Zone including, but not limited to, the power to enter into reimbursement agreements and other
obligations secured by the TIRZ FUND established pursuant to Section 6 of this Ordinance.
3.4 Directors shall not receive any salary or other compensation for their services as
directors.
3.5. Pursuant to Section 311.010(h) of the Act and Article III, Section 52-a of the Texas
Constitution, the City Council hereby authorizes the Board, as necessary or convenient to
implement the Project and Finance Plan and achieve its purposes, to establish and provide for the
administration of one or more programs for the public purposes of developing and diversifying the
economy of the Zone, eliminating unemployment and underemployment in the Zone, and
developing or expanding transportation, business, and commercial activity in the Zone, including
programs to make grants of land and buildings and make grants from the TIRZ Fund for activities
that benefit the Zone and stimulate business and commercial activity in the Zone. In addition, the
City Council hereby authorizes the Board to exercise all of the powers of the City under Chapter
380, Texas Local Government Code, as amended.
SECTION 4. DURATION OF THE ZONE. The Zone shall take effect immediately upon the
passage and approval of this Ordinance. The Zone shall terminate on December 31, 2057 (with
final year's tax to be collected by September 30, 2058), unless otherwise terminated in accordance
with this section. The City shall have the right to terminate the Zone prior to the expiration of its
stated term if all of the PROJECT COSTS have been paid in full. If upon expiration of the stated
term of the Zone, PROJECT COSTS have not been paid, the City and the County, shall have no
obligation to pay the shortfall.
SECTION 5. TAX INCREMENT BASE. The "tax increment base" for purposes of calculating
the CITY TAX INCREMENT, and if the County participates in the Zone the COUNTY TAX
INCREMENT, and means the total appraised value of all real property in the Zone that is taxable
by the City and the County, respectively, as of January 1, 2021.
SECTION 6. CAPTURED APPRAISED VALUE. The "captured appraised value" for purposes
of calculating the annual CITY TAX INCREMENT, and if the County participates in the Zone
the COUNTY TAX INCREMENT, means the total real property value taxable (including
increase tax values attributable to changes in use) by a taxing unit for a year and located in the
Zone for that year less the tax increment base of the unit.
SECTION 7. TAX INCREMENT FUND. There is hereby created and established a TIRZ
FUND for the Zone. Within the TIRZ FUND, there may be maintained subaccounts as necessary
and convenient to carry out the purposes of the Act. The CITY TAX INCREMENT and
COUNTY TAX INCREMENT shall be deposited into the TIRZ FUND as of the effective date
of the Zone. The TIRZ FUND and all subaccounts shall be maintained at the depository bank of
the City and shall be secured in the manner prescribed by law for funds of Texas cities. Prior to
termination of the Zone, funds shall be disbursed from the TIRZ FUND only to pay PROJECT
COSTS.
SECTION 8. SEVERABILITY. If any provision, section, subsection, sentence, clause or phrase
of this Ordinance, or the application of same to any person or set of circumstances, is for any
reason held to be invalid, the validity of the remaining provisions of this Ordinance or their
application to other persons or sets of circumstances shall not be affected thereby, it being the
intent of the City Council in adopting this Ordinance that no provision of this Ordinance shall
become inoperative because of the invalidity of another provision; and, therefore, all provisions of
this Ordinance are declared severable for that purpose.
SECTION 9. OPEN MEETINGS. It is hereby found, determined, and declared that sufficient
written notice of the date, hour, place and subject of the meeting of the City Council at which this
Ordinance was adopted was posted at a place convenient and readily accessible at all times to the
general public at the City Hall of the City for the time required by law preceding its meeting, as
required by the Texas Open Meetings Act, Chapter 551 of the Texas Government Code, as
amended, and that this meeting has been open to the public as required by law at all times during
which this Ordinance and the subject matter hereof has been discussed, considered and formally
acted upon. The City Council further ratifies, approves and confirms such written notice and the
contents and posting thereof.
SECTION 10. EFFECTIVE DATE. This Ordinance shall take effect immediately upon its passage
as provided by law.
PASSED, APPROVED, AND ADOPTED\\\`\`���,�,���.�.��u/,,,,�����/'//'
& A/V
4te Pike, Mayor
ATTEST: '•
Carrie Land, City Secretary
Effective: �&.cq� C90A
APPROVED AS TO FORM AND LEGALITY:
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ClarkH.McCoy, Jr., ity Attorney
EXHIBIT A
PRELIMINARY PROJECT AND FINANCE PLAN
[REMAINDER OF THIS PAGE INTENTIONALLYLEFT BLANK]
REINVESTMENT ZONE NUMBER FOUR,
CITY OF ANNA, TEXAS
PRELIMINARY PROJECT AND FINANCE PLAN
DECEMBER 14, 2021
TABLE OF CONTENTS
Tableof Contents.........................................................................................................................................1
Section1: Introduction.................................................................................................................................2
Section2: Description and Maps..................................................................................................................4
Section 3: Proposed Changes to Ordinances, Plans, Codes, Rules, and Regulations....................................4
Section 4: Relocation of Displaced Persons..................................................................................................5
Section 5: Estimated Non -Project Costs.......................................................................................................5
Section 6: Proposed Public Improvements...................................................................................................5
Section 7: Estimated Project Costs...............................................................................................................5
Section8: Economic Feasibility.....................................................................................................................6
Section 9: Estimated Bonded Indebtedness.................................................................................................7
Section10: Appraised Value.........................................................................................................................7
Section11: Method of Financing..................................................................................................................7
Section 12: Duration of the Zone, Termination............................................................................................8
Listof Exhibits...............................................................................................................................................8
ExhibitA— Map of the Zone.........................................................................................................................9
ExhibitB — Non -Project Costs.....................................................................................................................10
ExhibitC — Project Costs.............................................................................................................................11
Exhibit D — Estimated Timeline of Incurred Costs.......................................................................................12
ExhibitE — Feasibility Study........................................................................................................................13
Exhibit F — Map of the Public Improvements..............................................................................................14
Exhibit G — Proposed Uses of the Property................................................................................................16
Exhibit H — Parcel Identification..................................................................................................................17
REINVESTMENT ZONE NO.4, CITY OF ANNA, TEXAS 1
PRELIMINARY PROJECT AND FINANCE PLAN
I SECTION 1: INTRODUCTION I
1.1 Authority and Purpose
The City of Anna, Texas, a Texas home -rule municipality (the "City") has the authority under
Chapter 311, Texas Tax Code, Tax Increment Financing Act, as amended (the "Act") to designate
a contiguous or noncontiguous geographic area within the corporate limits or extraterritorial
jurisdiction of the City as a tax increment reinvestment zone to promote development or
redevelopment of the area because the governing body of the City (the "City Council") has
determined that development or redevelopment would not occur solely through private
investment in the reasonably foreseeable future, that the Zone is feasible, and that creation of
the Zone is in the best interest of the City and the property in the Zone. The purpose of the Zone
is to facilitate such development or redevelopment by financing the costs of public works, public
improvements, programs, and other projects benefiting the Zone, plus other costs incidental to
those expenditures, all of which costs are authorized by the Act.
1.2 Eligibility Requirements
An area is eligible under the Act to be designated as a tax increment reinvestment zone if it either
(1) substantially arrests or impairs the sound growth of the municipality designating the Zone,
retard the provision of housing accommodations, or constitutes an economic or social liability
and is a menace to the public health, safety, morals, or welfare in its present condition, or (2) is
predominantly open or undeveloped and, because of obsolete platting, deterioration of
structures or site improvements, or other factors, substantially impairs or arrests the sound
growth of the City, (3) is in a federally assisted new community located in the City or in an area
immediately adjacent to a federally assisted new community, or (4) is in an area described in a
petition requesting that the area be designated as a reinvestment zone, if the petition is
submitted to the governing body of the City by the owners of property constituting at least fifty
percent (50%) of the appraised value of the property in the area according to the most recent
certified appraisal roll for the county in which the area is located. The City cannot, however,
designate a zone if more than thirty percent (30%) of the property in the proposed zone,
excluding property that is publicly owned, is used for residential purposes, or if the total
appraised value of taxable real property in the proposed zone and in existing reinvestment zones
exceeds fifty percent (50%) of the total appraised value of taxable real property in the City and
in industrial districts created by the City.
1.3 Proposed Zone
The City Council intends to create a tax increment reinvestment zone to be known as
"Reinvestment Zone Number Four, City of Anna, Texas" (the "Zone") that includes approximately
319.01 acres of land which parcels are identified on Exhibit H and depicted on Exhibit A (the
REINVESTMENT ZONE NO.4, CITY OF ANNA, TEXAS
PRELIMINARY PROJECT AND FINANCE PLAN
`A
"Property'). The Property is owned by AnaCapri Laguna Azure LLC, a Wyoming limited liability
company (the "Owner"). The Property is currently zoned Planned Development, and Agricultural
District. The Property is undeveloped, and due to its size, location, and physical characteristics,
development will not occur solely through private investment in the foreseeable future. The
Property substantially impairs and arrests the sound growth of the City because it is
predominately open and undeveloped due to factors such as the lack of public infrastructure and
the need for economic incentive to attract development to the Zone for the purpose of providing
long-term economic benefits including, but not limited to, increased real property tax base for
all taxing units in the Zone. If the public improvements, and other projects are financed as
contemplated by this Preliminary Plan (hereinafter defined), the City envisions that the Property
will be developed to take full advantage of the opportunity to bring to the City and Collin County,
(the "County"), a quality master planned residential development.
1.4 Preliminary Plan and Hearing
Before the City Council adopts the ordinance designating the Zone, the City Council must prepare
a preliminary reinvestment zone financing plan in accordance with the Act and hold a public
hearing on the creation of the proposed Zone and its benefits to the City and to the Property, at
which public hearing interested persons are given the opportunity to speak for and against the
creation of the proposed Zone, the boundaries of the proposed Zone and the concept of tax
increment financing, and at which hearing the owners of the Property will be given a reasonable
opportunity to protest the inclusion of their Property in the proposed Zone. The requirement of
the Act for a preliminary reinvestment zone financing plan is satisfied by this Preliminary Plan
dated December 14, 2021(the "Preliminary Plan'), the purpose of which is to describe, in general
terms, the public improvements that will be undertaken and financed by the Zone. A description
of how such public improvements and projects will be undertaken and financed will be
determined by the Final Plan and by the TIRZ Agreement (both hereinafter defined), which
require approval by the Board (hereinafter defined) and by the City Council.
1.5 Creation of the Zone
Upon the closing of the above referenced public hearing, the City Council may adopt an ordinance
in accordance with the Act creating the Zone if (1) the City Council finds that development or
redevelopment of the Property would not occur solely through private investment in the
reasonably foreseeable future, (2) that the Zone is feasible, (3) that improvements in the Zone
will significantly enhance the value of all the taxable real property in the Zone and will be of
general benefit to the City, and (4) that the Property is primarily open and undeveloped and
meets the eligibility requirements of the Act. Among other provisions required by the Act, the
ordinance creating the Zone will appoint a Board of Directors for the Zone (the "Board").
REINVESTMENT ZONE NO.4, CITY OF ANNA, TEXAS
3
PRELIMINARY PROJECT AND FINANCE PLAN
1.6 Board Recommendations
After the creation of the Zone, the Board will review this Preliminary Plan and approve and
recommend to the City Council a "Reinvestment Zone Number Four, City of Anna, Texas, Final
Project and Finance Plan" (the "Final Plan"), and an agreement between the Owner, Board, and
City (the "TIRZ Agreement") pursuant to which the City will contribute a portion of its ad valorem
tax increment attributable to new development in the Zone (the "Tax Increment") into a tax
increment fund created by the City and segregated from all other funds of the City (the "TIRZ
Fund") to pay to the Owner or its assigns, in accordance with the TIRZ Agreement, the costs of
public improvements and other projects benefiting the Zone.
1.7 Council Action
The City Council will take into consideration the recommendations of the Board and will consider
approval of the Final Plan, and the TIRZ Agreement. If the TIRZ Agreement is approved, the City
Council will authorize and direct its execution.
I SECTION 2: DESCRIPTION AND MAPS I
2.1 Existing Uses and Conditions
The Property is currently located within the corporate limits of the City and is zoned Planned
Development, and Agricultural District, in accordance with the City's zoning ordinance. The
Property is undeveloped, and there is no public infrastructure to support development.
Development will require extensive public infrastructure that: (1) the City cannot provide, and
(2) will not be provided solely through private investment in the foreseeable future. A map of the
Property and the Zone is shown on Exhibit A.
2.2 Proposed Uses
The proposed uses of the Property are expected to consist of single-family residential uses, as
shown on Exhibit G.
2.3 Parcel Identification
The parcels identified on Exhibit H provide sufficient detail to identify with ordinary and
reasonable certainty the territory included in the Zone.
SECTION 3: PROPOSED CHANGES TO ORDINANCES, PLANS, CODES, RULES, AND
REGULATIONS
The Property is wholly located in the corporate limits of the City and shall be subject to the City's
zoning regulation. The City has exclusive jurisdiction over the subdivision and platting of the
REINVESTMENT ZONE NO.4, CITY OF ANNA, TEXAS 4
PRELIMINARY PROJECT AND FINANCE PLAN
property within the Property and the design, construction, installation, and inspection of water,
sewer, drainage, roadway, and other public infrastructure. No proposed changes to zoning
ordinances, comprehensive plan, building codes, subdivision rules, or other municipal ordinances
are planned.
I SECTION 4: RELOCATION OF DISPLACED PERSONS I
No persons will be displaced and in need of relocation due to the creation of the Zone or
implementation of the Final Plan.
SECTION 5: ESTIMATED NON -PROJECT COSTS
Non -project costs are private funds that will be spent to develop in the Zone but will not be
financed by the Zone. The list of non -project costs is shown on Exhibit B and are estimated to be
approximately $322.3 million.
SECTION 6: PROPOSED PUBLIC IMPROVEMENTS
6.1 Categories of Public Improvements
The proposed public improvements to be financed by the Zone include roads, water, sanitary
sewer, storm drainage, landscaping and professional services (the "Public Improvements"), as
detailed on Exhibit C. All Public Improvements shall be designed and constructed in accordance
with all applicable City standards and shall otherwise be inspected, approved, and accepted by
the City. At the City's option, the Public Improvements may be expanded to include any other
category of improvements authorized by the Act.
6.2 Locations of Public Improvements
The estimated locations of the proposed Public Improvements are depicted on Exhibit F. These
locations may be revised, with the approval of the City, from time to time without amending the
Final Plan.
I SECTION 7: ESTIMATED PROJECT COSTS I
7.1 Project Costs
The total costs for projects in the Zone, which includes the Public Improvements costs and the
cost of administering the Zone, are estimated to be $45.4 million (the "Project Costs"), as shown
on Exhibit E.
REINVESTMENT ZONE NO.4, CITY OF ANNA, TEXAS 5
PRELIMINARY PROJECT AND FINANCE PLAN
7.2 Estimated Costs of Public Improvements
The estimated costs of the Public Improvements within the Zone are $45.0 million, as shown on
Exhibit C.
7.3 Estimated Administrative Costs
The estimated costs for administration of the Zone shall be the actual, direct costs paid or
incurred by or on behalf of the City to administer the Zone (the "Administrative Costs"). The
Administrative Costs include the costs of professional services, including those for planning,
engineering, and legal services paid by or on behalf of the City. The Administrative Costs also
include organizational costs, the cost of publicizing the creation of the Zone, and the cost of
implementing the project plan for the Zone paid by or on behalf of the City that are directly
related to the administration of the Zone. The Administrative Costs shall be paid each year from
the TIRZ Fund before any other Project Costs are paid. The Administrative Costs are estimated to
begin in 2022 and escalate at two percent (2%) thereafter.
7.4 Estimated Timeline of Incurred Costs
The Administrative Costs will be incurred annually beginning at the time the Zone is created and
through the duration of the Zone. It is estimated the Project Costs will be incurred during calendar
years 2022 through 2028, as shown on Exhibit D.
SECTION 8: ECONOMIC FEASIBILITY
8.1 Feasibility Study
For purposes of this Preliminary Plan, economic feasibility has been evaluated over the term of
the Zone, as shown on Exhibit E (the "Feasibility Study"). This evaluation focuses on only direct
financial benefits (i.e. ad valorem tax revenues from the development of Public Improvements in
the Zone). Based on Table 1 below, during the term of the Zone, new development (which would
not have occurred but for the Zone) will generate approximately $95.6 million in total new real
property tax revenue, and $47.8 million will be contributed to the General Fund. The remaining
additional revenue will be deposited in the TIRZ Fund to pay Project Costs.
Table 1
The Feasibility Study shows a portion of the new real property tax revenue generated by the Zone
will be retained by the City. The remainder of the new real property tax revenue generated within
the Zone will be available to pay Project Costs, until the term expires or is otherwise terminated.
REINVESTMENT ZONE NO.4, CITY OF ANNA, TEXAS 6
PRELIMINARY PROJECT AND FINANCE PLAN
Upon expiration or termination of the Zone, one hundred percent (100%) of all tax revenue
generated within the Zone will be retained by the respective taxing entities. Based on the
foregoing, the feasibility of the Zone has been demonstrated.
SECTION 9: ESTIMATED BONDED INDEBTEDNESS
No bonded indebtedness issued by the City pursuant to the Act is contemplated.
SECTION 10: APPRAISED VALUE
10.1 Current Appraised Value
The current total appraised value of taxable real property in the Zone is $53,194, which
represents the Tax Increment Base, (the "Tax Increment Base") of the Property and shall be
confirmed by the Collin County Appraisal District in accordance with Section 311.012(c) of the
Act.
10.2 Estimated Captured Appraised Value
The amount of the Tax Increment for a year during the term of the Zone is the amount of property
taxes levied and collected by the City for that year on the captured appraised value of the
Property less the Tax Increment Base of the Property, (the "Captured Appraised Value"). The Tax
Increment Base of the Property is the total taxable value of the Property for the year in which
the Zone was designated, as described in Section 10.1 above. It is estimated that upon expiration
of the term of the Zone, the total Captured Appraised Value of taxable real property in the Zone
will be approximately $710.9 million, as shown on Exhibit E. The actual Captured Appraised
Value, as certified by the Collin County Appraisal District will, for each year, will be used to
calculate annual payment by the City into the TIRZ Fund pursuant to the Final Plan.
SECTION 11: METHOD OF FINANCING
Pursuant to the Development Agreement, the Owner has paid, and will in the future pay, those
Project Costs attributable to the Public Improvements and will construct or cause to be
constructed the Public Improvements. The Final Plan shall obligate the City to deposit into the
TIRZ Fund each year for the duration of the Zone an amount equal to fifty percent (50%) of the
Captured Appraised Value in the Zone levied and collected that constitutes the Tax Increment for
that year. For example, in FY 2022, the City tax rate is $0.5695 per $100 of assessed value,
therefore the City will contribute $0. 28475 per $100 of the Captured Appraised Value in the Zone
levied and collected. Funds deposited into the TIRZ Fund shall always first be applied to pay the
Administrative Costs. After the Administrative Costs have been paid, funds in the TIRZ Fund shall
next be used to fund the Public Improvements. All payments of Project Costs shall be made solely
REINVESTMENT ZONE NO.4, CITY OF ANNA, TEXAS 7
PRELIMINARY PROJECT AND FINANCE PLAN
from the TIRZ Fund and from no other funds of the City unless otherwise approved by the
governing body, and the TIRZ Fund shall only be used to pay the Project Costs in accordance with
the Final Plan and the TIRZ Agreement. The City may amend the Final Plan in compliance with the
TIRZ Agreement, including but not limited to what is considered a Project Cost.
SECTION 12: DURATION OF THE ZONE, TERMINATION
12.1 Duration
The stated term of the Zone shall commence on the creation of the Zone, and shall continue for
thirty-six years (36) until December 31, 2057, with the last payment being received by January
31, 2058 unless otherwise terminated in accordance with the TIRZ Creation Ordinance.
12.2 Termination
The Zone will terminate prior to the expiration of its stated term if the Project Costs are fully
funded. If upon expiration of the stated term of the Zone, the Project Costs have not been fully
funded, the City, shall have no obligation to pay the shortfall and the term shall not be extended.
The provisions of this section shall be included in the TIRZ Agreement. Nothing in this section is
intended to prevent the City from extending the term of the Zone in accordance with the Act.
LIST OF EXHIBITS
Unless otherwise stated, all references to "Exhibits" contained in this Preliminary Plan shall mean
and refer to the following exhibits, all of which are attached to and made a part of this Preliminary
Plan for all purposes.
Exhibit A
Map of the Zone
Exhibit B
Non -Project Costs
Exhibit C
Project Costs
Exhibit D
Estimated Timeline of Incurred Costs
Exhibit E
Feasibility Study
Exhibit F
Map of the Public Improvements
Exhibit G
Proposed Uses of the Property
Exhibit H
Legal Description
REINVESTMENT ZONE NO.4, CITY OF ANNA, TEXAS
PRELIMINARY PROJECT AND FINANCE PLAN
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EXHIBIT C - PROJECT COSTS
Public Improvements
Roads
$ 14,483,365
Water
$ 4,034,804
Sanitary Sewer
$ 4,396,390
Storm Drainage
$ 7,170,896
Landscaping
$ 4,382,438
Soft Costs
$ 10,579,561
Public Improvements Subtotal
$ 45,047,454
Administrative Costs
$ 387,922
REINVESTMENT ZONE NO.4, CITY OF ANNA, TEXAS
11
PRELIMINARY PROJECT AND FINANCE PLAN
EXHIBIT D - ESTIMATED TIMELINE OF INCURRED COSTS
TIRZ Term
Calendar
Year
Soft Costs
Construction
Costs
Base
2021
$ -
$
-
$
-
$ -
1
2022
$ 840,126
$
2,737,104
$
3,577,230
$ 3,577,230
2
2023
$ 816,122
$
2,658,901
$
3,475,023
$ 7,052,253
3
2024
$ 832,444
$
2,712,079
$
3,544,523
$ 10,596,776
4
2025
$ 713,238
$
2,323,709
$
3,036,948
$ 13,633,724
5
2026
$ 2,811,497
$
9,159,772
$ 11,971,268
$ 25,604,992
6
2027
$ 2,731,904
$
8,900,462
$ 11,632,367
$ 37,237,359
7
2028
$ 1,834,230
$
5,975,865
$
7,810,095
$ 45,047,454
$ 45,047,454
REINVESTMENT ZONE NO.4, CITY OF ANNA, TEXAS 12
PRELIMINARY PROJECT AND FINANCE PLAN
EXHIBIT E - FEASIBILITY STUDY
TIRZTerm
Calendar
Year
Growth /
Year
Residential Development
Annual New Incremental
Value Net Taxable Value Value
0.5695
50% $
$
Base 2021
$ - $ 53,194 $ -
1
2022
2.0%
$ -
$ 54,258
$ 1,064
0.5695
50% $
$
2
2023
2.0%
$ 34,957,440
$ 35,012,783
$ 34,959,589
0.5695
50% $
3
$ 3
3
2024
2.0%
$ 33,959,656
$ 69,671,695
$ 69,618,501
0.5695
50% $
99,547
$ 99,550
4
2025
2.0%
$ 34,637,829
$ 105,702,958
$ 105,649,764
0.5695
50% $
198,239
$ 297,789
5
2026
2.0%
$ 29,677,692
$ 137,494,709
$ 137,441,515
0.5695
50% $
300,838
$ 598,627
6
2027
2.0%
$ 116,985,752
$ 257,230,355
$ 257,177,161
0.5695
50% $
391,365
$ 989,992
7
2028
2.0%
$ 113,673,934
$ 376,048,896
$ 375,995,702
0.5695
50% $
732,312
$ 1,722,304
8
2029
2.0%
$ 76,321,892
$ 459,891,766
$ 459,838,572
0.5695
50% $
1,070,648
$ 2,792,951
9
2030
0.00%
$ -
$ 459,891,766
$ 459,838,572
0.5695
50% $
1,309,390
$ 4,102,342
10
2031
0.00%
$
$ 459,891,766
$ 459,838,572
0.5695
50% $
1,309,390
$ 5,411,732
11
2032
2.0%
$
$ 469,089,601
$ 469,036,407
0.5695
50% $
1,309,390
$ 6,721,122
12
2033
2.0%
$
$ 478,471,393
$ 478,418,199
0.5695
50% $
1,335,581
$ 8,056,703
13
2034
2.0%
$
$ 488,040,821
$ 487,987,627
0.5695
50% $
1,362,296
$ 9,418,999
14
2035
2.0%
$
$ 497,801,638
$ 497,748,444
0.5695
50% $
1,389,545
$ 10,808,544
15
2036
2.0%
$
$ 507,757,670
$ 507,704,476
0.5695
50% $
1,417,339
$ 12,225,883
16
2037
2.0%
$
$ 517,912,824
$ 517,859,630
0.5695
50% $
1,445,688
$ 13,671,571
17
2038
2.0%
$
$ 528,271,080
$ 528,217,886
0.5695
50% $
1,474,605
$ 15,146,177
18
2039
2.0%
$
$ 538,836,502
$ 538,783,308
0.5695
50% $
1,504,100
$ 16,650,277
19
2040
0.00%
$
$ 538,836,502
$ 538,783,308
0.5695
50% $
1,534,185
$ 18,184,462
20
2041
0.00%
$
$ 538,836,502
$ 538,783,308
0.5695
50% $
1,534,185
$ 19,718,648
21
2042
2.0%
$
$ 549,613,232
$ 549,560,038
0.5695
50% $
1,534,185
$ 21,252,833
22
2043
2.0%
$
$ 560,605,496
$ 560,552,302
0.5695
50% $
1,564,872
$ 22,817,706
23
2044
2.0%
$
$ 571,817,606
$ 571,764,412
0.5695
50% $
1,596,173
$ 24,413,878
24
2045
2.0%
$
$ 583,253,959
$ 583,200,765
0.5695
50% $
1,628,099
$ 26,041,977
25
2046
2.0%
$
$ 594,919,038
$ 594,865,844
0.5695
50% $
1,660,664
$ 27,702,642
26
2047
2.0%
$
$ 606,817,418
$ 606,764,224
0.5695
50% $
1,693,880
$ 29,396,522
27
2048
2.0%
$
$ 618,953,767
$ 618,900,573
0.5695
50% $
1,727,761
$ 31,124,283
28
2049
2.0%
$
$ 631,332,842
$ 631,279,648
0.5695
50% $
1,762,319
$ 32,886,603
29
2050
0.0%
$
$ 631,332,842
$ 631,279,648
0.5695
50% $
1,797,569
$ 34,684,171
30
2051
0.0%
$
$ 631,332,842
$ 631,279,648
0.5695
50% $
1,797,569
$ 36,481,740
31
2052
2.0%
$
$ 643,959,499
$ 643,906,305
0.5695
50% $
1,797,569
$ 38,279,309
32
2053
2.0%
$
$ 656,838,689
$ 656,785,495
0.5695
50% $
1,833,523
$ 40,112,832
33
2054
2.0%
$
$ 669,975,463
$ 669,922,269
0.5695
50% $
1,870,197
$ 41,983,029
34
2055
2.0%
$
$ 683,374,972
$ 683,321,778
0.5695
50% $
1,907,604
$ 43,890,633
35
2056
2.0%
$
$ 697,042,471
$ 696,989,277
0.5695
50% $
1,945,759
$ 45,836,391
36
2057
2.0%
$
$ 710,983,321
$ 710,930,127
1 0.5695
50% $
1,984,677
$ 47,821,068
$ 440,213,195
$
47,821,068
Assumptions
Base Taxable Value $ 53,194
REINVESTMENT ZONE NO.4, CITY OF ANNA, TEXAS 13
PRELIMINARY PROJECT AND FINANCE PLAN
EXHIBIT F - MAP OF THE PUBLIC IMPROVEMENTS
REINVESTMENT ZONE NO. 1, CITY OF ANNA, TEXAS 14
PRELIMINARY PROJECT AND FINANCE PLAN
Hill PELOTON ANACAPRI ROADWAY EXHIBIT
U1I1 LAN. I-TJn N.
n!,r;l *F.zAs I oerev— in, x;o
REINVESTMENT ZONE NO. 1, CITY OF ANNA, TEXAS 15
PRELIMINARY PROJECT AND FINANCE PLAN
EXHIBIT G - PROPOSED USES OF THE PROPERTY
PHASE 1: 112.40's
284.50's
098 Lob
PHASE 2AM 177-40's
129 - 60's
300 Lob
PHASE 0: 105 •40's
112.E s
247 Lob
PHASE 4: 164 -40's
126.60's
290 Lots
PELOTON ANACAPRI PHASING EXHIBIT
I'III LAND LOluT10 NI AN k-MI D¢Cfi ,N.m �... ..
REINVESTMENT ZONE NO. 1, CITY OF ANNA, TEXAS 16
PRELIMINARY PROJECT AND FINANCE PLAN
rEXHIBIT H - PARCEL IDENTIFICATION
Property
1011915
ABS A0786 S E ROBERTS SURVEY, TRACT 1, 27.392 ACRES
1013708
ABS A0997 ELI W WITT SURVEY, TRACT 1, 50. ACRES
2759616
ABS A0786 S E ROBERTS SURVEY, TRACT 2, 45.468 ACRES
2759795
ABS A0786 S E ROBERTS SURVEY, TRACT 3, 84.00 ACRES
2770352
ABS A0288 F T DAFFAU SURVEY, TRACT 1, 111.666 ACRES
REINVESTMENT ZONE NO. 1, CITY OF ANNA, TEXAS
17
PRELIMINARY PROJECT AND FINANCE PLAN