HomeMy WebLinkAboutOrd 952-2021 Designating Tax Increment Reinvestment Zone #5 (TIRZ)CITY OF ANNA, TEXAS
ORDINANCE NO.
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 FIVE, 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 Five, City of Anna, Texas, Preliminary Project and Finance Plan (the
"Preliminary Project and Finance Plan") for a proposed tax increment reinvestment zone
containing the approximately 52.17 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 (71h) 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 Five, 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, 2051 (with
final year's tax to be collected by Septe
mber 30, 2052), 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
~ •• ate
ATTEST:
//''``` 0u � E A
Carrie Land, City Secretary
Effective: 4LUA7?&6 c
APPROVED AS TO FORM AND LEGALITY:
Clark H. McCoy, Jr. ity Attorney
Pike, Mayor
EXHIBIT A
PRELIMINARY PROJECT AND FINANCE PLAN
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
lw
REINVESTMENT ZONE NUMBER FIVE,
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..................................................................................................4
Section 5: Estimated Non -Project Costs.......................................................................................................5
Section 6: Proposed Public Improvements...................................................................................................5
Section7: Estimated Project Costs...............................................................................................................5
Section8: Economic Feasibility.....................................................................................................................6
Section 9: Estimated Bonded Indebtedness.................................................................................................6
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 — Map of the Uses of the Property..............................................................................................15
ExhibitH— Parcel Identification..................................................................................................................16
REINVESTMENT ZONE NO. 5, 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 Five, City of Anna, Texas" (the "Zone") that includes approximately
52.17 acres of land as identified on Exhibit H and depicted on Exhibit A (the "Property"). The
REINVESTMENT ZONE NO.5, CITY OF ANNA, TEXAS Z
PRELIMINARY PROJECT AND FINANCE PLAN
Property is owned by AnaCapri Laguna Azure LLC, a Wyoming limited liability company (the
"Developer"). The Property is currently zoned Planned Development — Residential. 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 commercial 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.5, 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 Five, City of Anna, Texas, Final
Project and Finance Plan" (the "Final Plan"), and an agreement between the Developer, 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 Developer 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, 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 residential, 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 proposed Zone is shown on Exhibit A.
2.2 Proposed Uses
The proposed uses of the Property are expected to consist of multi -family, and commercial, 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.
REINVESTMENT ZONE NO. 5, CITY OF ANNA, TEXAS 4
PRELIMINARY PROJECT AND FINANCE PLAN
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
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.
I SECTION 5: ESTIMATED NON -PROJECT COSTS I
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 $72.2 million.
SECTION 6: PROPOSED PUBLIC IMPROVEMENTS
6.1 Categories of Public Improvements
The proposed public improvements to be financed by the Zone include streets, water, sewer,
storm drainage, open space, parks and landscaping, professional services, and Economic
Development Grants (hereinafter defined) (the "Public Improvements"), as depicted in 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.
REINVESTMENT ZONE NO. 5, CITY OF ANNA, TEXAS 5
PRELIMINARY PROJECT AND FINANCE PLAN
SECTION 7: ESTIMATED PROJECT COSTS
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 $2.9 million (the "Project Costs"), as shown
on Exhibit E.
7.2 Estimated Costs of Public Improvements
The estimated costs of the Public Improvements (the "Public Improvement Costs") within the
Zone are $2.5 million, as shown on Exhibit E.
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 between 2023
and 2025, as shown on Exhibit D.
I SECTION 8: ECONOMIC FEASIBILITY I
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 $19.6 million in total new real
property tax revenue, and $12.9 million will be contributed to the TIRZ Fund. The remaining
additional revenue will be deposited in the TIRZ Fund to pay Project Costs.
Table 1
REINVESTMENT ZONE NO.5, CITY OF ANNA, TEXAS 6
PRELIMINARY PROJECT AND FINANCE PLAN
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.
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.
I SECTION 9: ESTIMATED BONDED INDEBTEDNESS I
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 $1,472,950, 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 $147 million, as shown on Exhibit F. 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.
I SECTION 11: METHOD OF FINANCING I
The Developer 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 seventy percent (70%) of the Captured Appraised Value in the Zone levied
REINVESTMENT ZONE NO.5, CITY OF ANNA, TEXAS 7
PRELIMINARY PROJECT AND FINANCE PLAN
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 $0.39865 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 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.
I SECTION 12: DURATION OF THE ZONE, TERMINATION I
12.1 Duration
The stated term of the Zone shall commence on the creation of the Zone, and shall continue until
December 31, 2051, with the last payment due by January 31, 2052 unless otherwise terminated
in accordance with the ordinance creating the Zone.
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.
REINVESTMENT ZONE NO.5, CITY OF ANNA, TEXAS 8
PRELIMINARY PROJECT AND FINANCE PLAN
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
Map of the Uses of the Property
Exhibit H
Parcel Identification
REINVESTMENT ZONE NO.5, CITY OF ANNA, TEXAS
PRELIMINARY PROJECT AND FINANCE PLAN
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EXHIBIT B - NON -PROJECT COSTS
REINVESTMENT ZONE NO. 5, CITY OF ANNA, TEXAS
11
PRELIMINARY PROJECT AND FINANCE PLAN
EXHIBIT C - PROJECT COSTS
Public Improvements)
Street
$ 994,874
Water
$ 103,145
Sanitary Sewer
$ 153,927
Storm Drainage
$ 248,796
Open Space, Parks, and Landscaping
$ 615,568
Soft Costs
$ 431,860
Public Improvements Subtotal
$ 2,548,170
Administrative Costs $ 405,681
REINVESTMENT ZONE NO. 5, CITY OF ANNA, TEXAS
PRELIMINARY PROJECT AND FINANCE PLAN
12
EXHIBIT D - ESTIMATED TIMELINE OF INCURRED COSTS
431,860.31 2,116,310 2,548,170
REINVESTMENT ZONE NO. 5, CITY OF ANNA, TEXAS
13
PRELIMINARY PROJECT AND FINANCE PLAN
I EXHIBIT E - FEASIBILITY STUDY I
Zone Term
Base
Year
2021
Growth/
Year'
0%
New Assessed
Value Net Taxable Value
- 1,472,950
Incremental
Value
-
City
Rate
0.5695
TIRZ
%
70%
Fund Contribution
Annual
Cumulative
1
2022
2.0%
- 1,502,409
29,459
0.5695
70%
-
-
2
2023
2.0%
50,199,300 51,731,757
50,258,807
0.5695
70%
117
117
3
2024
2.0%
22,285,368 75,051,760
73,578,810
0.5695
70%
200,357
200,474
4
2025
2.0%
22,731,075 99,283,871
97,810,921
0.5695
70%
293,322
493,796
5
2026
2.0%
- 101,269,548
99,796,598
0.5695
70%
389,923
883,719
6
2027
2.0%
103,294,939
101,821,989
0.5695
70%
397,839
1,281,558
7
2028
2.0%
105,360,838
103,887,888
0.5695
70%
405,913
1,687,472
8
2029
2.0%
107,468,055
105,995,105
0.5695
70%
414,149
2,101,621
9
2030
0.0%
107,468,055
105,995,105
0.5695
70%
422,549
2,524,170
10
2031
0.0%
107,468,055
105,995,105
0.5695
70%
422,549
2,946,720
11
2032
2.0%
109,617,416
108,144,466
0.5695
70%
422,549
3,369,269
12
2033
2.0%
111,809,764
110,336,814
0.5695
70%
431,118
3,800,387
13
2034
2.0%
114,045,960
112,573,010
0.5695
70%
439,858
4,240,245
14
2035
2.0%
116,326,879
114,853,929
0.5695
70%
448,772
4,689,017
15
2036
2.0%
118,653,416
117,180,466
0.5695
70%
457,865
5,146,882
16
2037
2.0%
121,026,485
119,553,535
0.5695
70%
467,140
5,614,022
17
2038
2.0%
123,447,014
121,974,064
0.5695
70%
476,600
6,090,623
18
2039
2.0%
125,915,955
124,443,005
0.5695
70%
486,250
6,576,872
19
2040
0.0%
125,915,955
124,443,005
0.5695
70%
496,092
7,072,964
20
2041
0.0%
125,915,955
124,443,005
0.5695
70%
496,092
7,569,056
21
2042
2.0%
128,434,274
126,961,324
0.5695
70%
496,092
8,065,148
22
2043
2.0%
131,002,959
129,530,009
0.5695
70%
506,131
8,571,280
23
2044
2.0%
133,623,018
132,150,068
0.5695
70%
516,371
9,087,651
24
2045
2.0%
136,295,479
134,822,529
0.5695
70%
526,816
9,614,467
25
2046
2.0%
139,021,388
137,548,438
0.5695
70%
537,470
10,151,937
26
2047
2.0%
141,801,816
140,328,866
0.5695
70%
548,337
10,700,274
27
2048
2.0%
144,637,852
143,164,902
0.5695
70%
559,421
11,259,695
28
2049
2.0%
147,530,609
146,057,659
0.5695
70%
570,727
11,830,422
29
2050
0.0%
147,530,609
146,057,659
0.5695
70%
582,259
12,412,681
30
2051
0.0%
147,530,609
146,057,659
0.5695
70%
582,259
12,994,940
95,215,743 12,994,940
Footnotes:Assumptions
Base Taxable Value: 1,472,950 (1) Values increased at 2% annually, with two years of no
growth each decade to simulate an economic downturn.
(2) As provided by the Developer on 10/23/2021.
REINVESTMENT ZONE NO. 5, CITY OF ANNA, TEXAS
14
PRELIMINARY PROJECT AND FINANCE PLAN
IEXHIBIT F - MAP OF THE PUBLIC IMPROVEMENTS
REINVESTMENT ZONE NO. 5, CITY OF ANNA, TEXAS 15
PRELIMINARY PROJECT AND FINANCE PLAN
FERGUSON NORTH MF
OFF -SITE -2 LANES
`
...
..........
•
- MULTI -FAMILY
COLLECTOR
FERGUSON MULTI -FAMILY - 2 LANES
COLLECTOR
N -WATER
TOWER
!J
REINVESTMENT ZONE NO. 5, CITY OF ANNA, TEXAS 16
PRELIMINARY PROJECT AND FINANCE PLAN
EXHIBIT G - PROPOSED USES OF THE PROPERTY
REINVESTMENT ZONE NO. 5, CITY OF ANNA, TEXAS 17
PRELIMINARY PROJECT AND FINANCE PLAN
EXHIBIT H - PARCEL IDENTIFICATION
PropertyDescription
2112108 ABS A0649 MARTIN MOORE SURVEY, TRACT 4, 2.46 ACRES; EXEMPT AS OF 7/14/00
2767041 ABS A0649 MARTIN MOORE SURVEY, TRACT 5, 50.00 ACRES
REINVESTMENT ZONE NO. 5, CITY OF ANNA, TEXAS
18
PRELIMINARY PROJECT AND FINANCE PLAN