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HomeMy WebLinkAboutOrd 708-2015 Designating Tax Increment Reinvestment Zone #1 (TIRZ) Villages of Hurricane CreekCITY OF ANNA ORDINANCE NO. 708-2015 (Villages of Hurricane Creek TIRZ) AN ORDINANCE DESIGNATING A CERTAIN AREA AS TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, CITY OF ANNA, TEXAS, ESTABLISHING A BOARD OF DIRECTORS FOR SUCH REINVESTMENT ZONE, MAKING CERTAIN FINDINGS, AND OTHER MATTERS RELATED THERETO. WHEREAS, the City Council of the City of Anna, Texas, (the "City"), desires to promote the development of a certain contiguous geographic area within its jurisdiction by the creation of a reinvestment zone, as authorized by the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code (the "Act"); and WHEREAS, in compliance with the Act, the City has called a public hearing to hear public comments on the creation of the proposed reinvestment zone and its benefits to the City and the property in the proposed reinvestment zone; and WHEREAS, in compliance with the Act, notice of such public hearing was published on October 29, 2015, in the Anna Melissa Tribune, the designated paper of general circulation for City notices, such publication date being not later than seven (7) days prior to the date of the public hearing; and WHEREAS, such hearing was convened at the time and place mentioned in the published notice, to wit, on November 10, 2015 at 7:30 p.m. in the City Hall of the City of Anna, Texas, which hearing was then held open and continued to December 8, 2015 at 7:30 p.m. in the City Hall of the City of Anna, Texas, which hearing was then closed; and WHEREAS, the City, at said hearings, invited any interested person, or his attorney, to appear and speak for or against the creation of the reinvestment zone, the boundaries of the proposed reinvestment zone, whether all or part of the territory which is described and attached hereto as Exhibit "A" and depicted on the map attached hereto as Exhibit "B" should be included in such proposed reinvestment zone, the concept of tax increment financing and the appointment of a board of directors of the proposed reinvestment zone; and WHEREAS, all owners of property located within the proposed reinvestment zone and all other taxing units and other interested persons were given a reasonable opportunity at such public hearing to protest the creation of the proposed reinvestment zone and/or the inclusion of their property in such reinvestment zone; and WHEREAS, the proponents of the reinvestment zone offered evidence, both oral and documentary, in favor of all of the foregoing matters relating to the creation of the reinvestment zone, and opponents, if any, of the reinvestment zone appeared to contest creation of the zone; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS: SECTION 1: That the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct and are incorporated herein by reference. SECTION 2: That the City Council, after conducting such hearing and having heard such evidence and testimony, has made the following findings and determinations based on the evidence and testimony presented to it: a) That the public hearing on adoption of the reinvestment zone has been properly called, held and conducted and that notice of such hearing has been published as required by law. b) That creation of the proposed reinvestment zone with boundaries as described in Exhibits "A" and "B" will result in benefits to the City, its residents and property owners, in general, and to the property, residents and property owners in the reinvestment zone. c) That the reinvestment zone, as defined in Exhibits "A" and "B", meets the criteria for the creation of a reinvestment zone set forth in the Act in that: 1. It is a contiguous geographic area located wholly within the corporate limits of the City. 2. The area is predominately open, undeveloped or underdeveloped, and lack of necessary public improvements impairs growth. d) That 30 percent or less of the property in the proposed reinvestment zone, excluding property dedicated to public use, is used for residential purposes, which is defined in the Act as any property occupied by a house which has less than five living units. e) That the total appraised value of all taxable real property in the proposed reinvestment zone according to the most recent appraisal rolls of the City, together with the total appraised value of taxable real property in all other existing reinvestment zones within the City, according to the most recent appraisal rolls of the City, does not exceed 50 percent of the current total appraised value of taxable real property in the City and in the industrial districts created by the City, if any. f) That the proposed reinvestment zone does not contain more than 50 percent of the total appraised value of real property taxable by a county or school district. g) That the improvements in the reinvestment zone will significantly enhance the value of all taxable real property in the reinvestment zone. h) That the development or redevelopment of the property in the proposed reinvestment zone will not occur solely through private investment in the reasonable foreseeable future. SECTION 3: That the City hereby creates a reinvestment zone over the area described in Exhibit "A" attached hereto and depicted in the map attached hereto as Exhibit "B" and such reinvestment zone shall hereafter be identified as Tax Increment Reinvestment Zone Number One, City of Anna, Texas (the "Zone" or "Reinvestment Zone"). SECTION 4: That there is hereby established a board of directors for the Zone that shall consist of seven members. The board of directors of the Reinvestment Zone shall be appointed as follows: a) Seven members shall be appointed by the City Council of the City of Anna and one member may be appointed by the Collin County Commissioners Court at such time as Collin County may duly act to participate in the zone. The initial board of directors shall be appointed by resolution within sixty (60) days of the passage of this ordinance or within a reasonable time thereafter. All members appointed to the board shall meet the eligibility requirements set forth in the Act. At this time governing bodies of other taxing units that levy taxes on real property in Tax Increment Financing Reinvestment Zone Number One have chosen not to pay any of their taxes into the Tax Increment Fund and have waived their right to appoint board members. b) The terms of the board members shall be two-year terms. The City Council shall designate a member of the board to serve as chairman and other officers as it sees fit. c) The board of directors shall make recommendations to the City Council concerning the administration of the Zone. It shall prepare and adopt a project plan and reinvestment zone financing plan for the Zone and must submit such plans to the City Council for its approval. The Board of directors shall possess all powers necessary to prepare, implement and monitor such project plan and financing plan for the reinvestment zone as the City Council considers advisable, including the submission of an annual report on the status of the Zone. SECTION 5: The termination of the Zone shall occur on December 31, 2046, or at an earlier time designated by subsequent ordinance of the City Council in the event the City determines that the Zone should be terminated due to insufficient private investment, accelerated private investment or other good cause, or at such time as all project costs and tax increment bonds, if any, and the interest thereon, have been paid in full. Any statutory or equitable right to terminate the Zone at any earlier date or to extend the term is hereby reserved. Notwithstanding the foregoing, the termination of the Zone shall occur at the earlier of any of the times set forth above in this section or at the time when the Maximum TIRZ Contribution has been satisfied. For purposes of this section, the term "Maximum TIRZ Contribution" has the same meaning as set forth in Article II of the Villages of Hurricane Creek Subdivision Improvement Agreement, an agreement originally entered into between the City and Villages of Hurricane Creek, LP, a Texas limited partnership, Don Collins, an individual, Ted. K. Tedford, and individual, and Steve Cameron, an individual, and having an effective date of March 11, 2015. SECTION 6: That the Tax Increment Base for the Zone, which is the total taxable value of all real property located in the Zone, is to be determined as of January 1, 2015, the year in which the Zone was designated a reinvestment zone. SECTION 7: That there is hereby created and established a Tax Increment Fund for the Zone which may be divided into such subaccounts as may be authorized by subsequent resolution or ordinance, into which all Tax Increments, less any of the amounts not required to be paid into the Tax Increment Fund pursuant to the Act, are to be deposited. The Tax Increment Fund and any subaccounts are to be maintained in an account at the City Treasurer's affiliated depository bank of the City and shall be secured in the manner prescribed by law for funds of Texas cities. In addition, all revenues from the sale of any tax increment bonds and notes hereafter issued by the City, revenues from the sale of any property acquired as part of the tax increment financing plan and other revenues to be dedicated to and used in the Zone shall be deposited into such fund or subaccount from which monies will be disbursed to pay project costs for the Zone or to satisfy the claims of holders of tax increment bonds or other bonds or obligations issued for the Zone. The first priority for the expenditure of Tax Increments shall be to pay for administrative costs incurred in the creation and operation of the zone, including but not limited to reimbursement to the City and/or its development corporations for eligible expenditures. SECTION 8: That if any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. SECTION 9: This Ordinance shall take effect immediately from and after its passage and the publication of the caption, as the law and charter in such cases provide. SECTION 10: That it is hereby officially found and determined that the meeting at which this ordinance was passed was open to the public as required by law, and that public notice of the time, place, and purpose of said meeting was given all as required by Section 551.041, Texas Government Code. PASSED by the City Council of the City of Anna, Texas this 8th day of December 2015. p� q�IIINI l l l 111111\1�\`` ATTEST: r Carrie L. Smith, City Secretary APPROVED Mike Crist, Mayor Draft CITY OF ANNA TAX INCREMENT REINVESTMENT ZONE NO. _ PRELIMINARY PROJECT AND FINANCING PLAN December 3, 2015 MuniCap, Inc V1.2.1 Draft CITY OF ANNA TAX INCREMENT REINVESTMENT ZONE No. _ PRELIMINARY PROJECT AND FINANCING PLAN Table of Contents I Executive Summary 1 II Assessment and Tax Collection Procedures 3 III Historical Appreciation in Taxable Values 9 IV Project Plan 11 V Financing Plan 14 VI Assumptions and Limitations 22 List of Appendix Appendix A - Maps Appendix B — Estimated Project Costs Appendix C - Bond Debt Service Schedule Appendix D — Projected Absorption Appendix E — Projected Assessed Values Appendix F — Projected Incremental Real Estate Taxes Appendix G — Development Standards MuniCap, Inc V1.2.1 Draft I. Executive Summary PURPOSE OF TIRZ PROJECT AND FINANCING PLAN The purpose of this plan is to provide estimates of real property tax increment revenues resulting from the proposed Villages of Hurricane Creek development (the "Development") and available to offset assessments to be levied for repaying bonds to be issued by the City of Anna, Texas (the "City"). In particular, the study provides estimates of future real property tax increment revenues generated by the property within the City of Anna Tax Increment Reinvestment Zone No. _ (the "TIRZ"). As real property taxes are generated on an ad valorem basis from assessed values, it is first necessary to estimate the future assessed value resulting from the TIRZ. This plan provides assessed value information based on the following: • The development is completed as proposed by CADG Hurricane Creek, LLC (the "Developer"); • The units are sold according to the development pace estimated by the Developer, as summarized in subsequent sections of this report; • Property values are projected to increase at 1.89 percent annual rate of inflation through estimated build out in 2026 as calculated based on the ten-year average growth rate of annual average single family home prices between 2006 and 2015; and • The real property tax rate remains static at the fiscal year 2015 level in future years. ORGANIZATION OF TIRZ PLAN This plan begins with a discussion of the assessment and tax collection procedures within the City. Following this discussion is an analysis of historic appreciation of taxable values within the City. The report continues with a project plan that includes a narrative description of the TIRZ. Next, an account of the proposed development within the TIRZ, including an estimate of the projected market and assessed values for the proposed properties, is provided. The report continues with a calculation of real property tax increment revenues based on the estimated assessed values in preceding sections of the report. Finally, the report provides comprehensive projections of all estimated available revenue created by the TIRZ and shows the estimated debt service coverage generated by this revenue. RESULTS In summary, the TIRZ financing analysis indicates that, assuming 1.89 percent annual inflation through estimated buildout in 2026, the TIRZ is estimated to have an incremental value of $264,349,727 million at the time of completion of all phases in 2026. Table I -A provides the projected total and incremental assessed value for the District after the projected build -out in 2026. Refer to Appendices E and F, attached hereto, for more information on the projected incremental value for each year. 1 Draft TABLE I -A Projected Assessed Values Year Projected Value Base Value' Incremental Value 2026 $264,349,727 ($2,455,530) $261,894,197 1 - The base value of $2,455,530 represents the 2015market value shown in CAD records. The assessed values displayed in Table I -A are the basis for estimating incremental real property taxes. The projected incremental taxes are shown in Table I -B. The project is anticipated to be fully built out in calendar year 2026 and the related incremental taxes will become fully available starting 2027. TABLE I -B Projected Incremental Taxes Annual Incremental Taxes at Build -out Total Incremental Taxes through 2045 $1,673,504 $39,730,436 Refer to Appendix F for projected tax increment revenues for each year. Estimates of annual debt service coverage are included in Appendix C of this report. The financing plan for the public improvements contemplates the issuance of special revenue bonds by the City secured by special assessments on property within the Villages of Hurricane Creek Public Improvement District ("PID Assessments"). The bonds secured by the PID Assessments are referred to as the "PID Bonds" and are estimated to total $17,000,000 in bond par amounts. The TIRZ Project Costs represent a portion of the total public improvements to be funded with the PID Bonds. As a result, real property tax increment revenues are intended to pay an equivalent portion the debt service on the PID Bonds and will be applied as discussed more fully in PID Service and Assessment Plan. 2 Draft IL Assessment and Tax Collection Procedures ASSESSMENT PROCEDURES Overview Pursuant to Texas Tax Code, all taxable property is appraised at its market value as of January 1 of each year. Each County in Texas is served by an appraisal district, which determines the value of all of the county's taxable property. Generally, local governments that collect property taxes, such as counties, cities and school districts, are members of the appraisal district. Methodology The appraisal districts use different valuation methods depending on property type and circumstances. A brief description of these methods follows. Cost Approach — As the name implies, the cost approach values property on the basis of the costs of development. The value of a structure is determined by estimating the cost to replace the building with a new structure and then subtracting depreciation. This method assumes the cost of replacing the existing building plus the value of the land equals market value. The steps in applying the cost approach include: • Estimating the site value (land and site improvements) through review of comparable sales; • Estimating the cost of replacing the existing building with one of similar usefulness (reflecting current building design and materials); and • Deducting all sources of depreciation, including physical deterioration ("wear and tear" on a building) and functional and economic obsolescence. Functional obsolescence is the reduced ability of the building to perform the function it was originally designed and built for. Economic obsolescence refers to external forces that affect the ability of the building to continue to perform, such as changes in transportation corridors and new types of building design demanded by the market. The cost approach is relied upon most often when the property being appraised is new or nearly new and income is not yet stabilized, where there are no comparable sales, or where the improvements are relatively unique or specialized. Market Data Comparison Approach — The market data comparison approach is based on the premise that the value of a specific property is set by the price an informed purchaser would pay for a comparable property, offering similar desirability and usefulness. For instance, if recent sales of condominium units within the same building indicate an increase in market values, all assessed values for condominiums in the building will be reassessed to reflect this increase in market value. This requires an understanding and comparison of market variables, such as location, property size, physical features and economic factors. The process of identifying and analyzing comparable property sales is repeated until a satisfactory range of value indicators for the subject property is established and a final estimate of value is possible. The limitations of the sales comparison approach are that it requires recent sales data for similar properties. The 3 Draft sales comparison approach is relied upon most often for appraising the sale of residential property and is most likely to be relevant for the proposed residential development in the TIRZ. According to the Collin Central Appraisal District ("CAD"), properties developed in new subdivisions are typically appraised based on the sales price of the new homes developed in the subdivisions using a market comparison approach to value. Income Approach — The income approach to value is based on the premise that the value of a property is directly related to the income it will generate. The appraisal districts analyze both the property's ability to produce future income and its expenses, and based on projected new income, estimates the property's value. The appraiser develops a capitalization rate by analyzing the sales of similar income properties and determining the relationship between the sale price and net income. The steps in applying the income capitalization approach are to determine the stabilized, net - operating income by: • Estimating potential gross income from all sources; • Deducting an allowance for vacancy and bad debts; and • Deducting all direct and indirect operating expenses. The resulting net operating income is capitalized by a market rate, which reflects the property type and effective date of valuation to produce an estimate of overall property value. To determine the effective gross income, the appraiser estimates market rents by analyzing rents, both within the property being assessed and in comparable properties in the neighborhood, and making an allowance for vacancy and collection loss. Net operating income is estimated by deducting operating expenses. The appraiser typically determines the capitalization rate by analyzing sales (comparing net operating income to sale price) in the same market for similar properties to determine the ratio of net operating income to sales price. The capitalization rate will vary depending on the attractiveness of a property as an investment, income risks and physical factors, among other factors. In the absence of sufficient sales data, the appraisal districts may use standard industry rates as generated by other sources to determine cap rates. The income approach is relied upon most often when appraising properties that produce a rental income from single or multiple tenants. The capitalized value of the income stream provides an estimate of the market value of the property (land and improvements). An appraisal district may use any of the three common methods to value property. The legislature also authorizes appraisal districts to use a method called mass appraisal to calculate the value of a large number of similar properties. According to Section 23.01(b) of the Texas Property Tax Code: if the appraisal district determines the appraised value of a property using mass appraisal standards, the mass appraisal standards must comply with the Uniform Standards of Professional Appraisal Practice. The same or similar appraisal methods and techniques shall 4 Draft be used in appraising the same or similar kinds of property. However, each property shall be appraised based upon the individual characteristics that affect the property's market value, and all available evidence that is specific to the value of the property shall be taken into account in determining the property's market value. Appeals According to the CAD, property owners may utilize the CAD appeal procedures if they have a concern about: • the market or appraised value of the property; • unequal appraisal of the property compared to other properties; • the inclusion of the property on the appraisal roll; • any exemptions that may apply to the property owner; • the qualification for an agricultural or timber appraisal; • the taxable status of the property; • the local governments which should be taxing the property; • the ownership of property; • a change of use of land receiving special appraisal; • any action taken by the chief appraiser, CAD or Appraisal Review Board ("ARB") that applies to and adversely affects the property. If property owners cannot resolve their concern informally with the CAD staff, they may have their cases heard by the ARB. The ARB is an independent board of citizens that review problems with appraisals or other concerns listed above. It has the power to order the CAD to make the necessary changes to solve problems. If a property owner files a written request for an ARB hearing (called a notice of protest) on or before May 31 (or 30 days after the notice of appraised value was mailed to the property owner, whichever is later), the ARB will set the case for a hearing. The property owner will receive written notice of the time, date, and place of the hearing. After it decides the case, the ARB must send them a copy of its order by certified mail. If the property owner is not satisfied with the decision, it has the right to appeal. If it chooses to go to court, the property owner must start the process by filing a petition within 60 days of the date it receives the ARB's order. In certain cases, as an alternative to filing an appeal in district court, the property owner may file not later than the 45th day after it receives notice of the ARB order a request for binding arbitration with the CAD. In certain cases originating in certain counties, as an alternative to filing an appeal in district court, the property owner may appeal to the State Office of Administrative Hearings (SOAH). An appeal to SOAH is initiated by not later than the 30th day after the property owner receives notice of the ARB's order by filing with the chief appraiser of the CAD a notice of appeal. CAD also takes a similar approach. TAXATION PROCEDURES Timeline The assessment and property tax process for each tax year includes the following steps: 5 Draft Dates Event January 1 CADS are required to appraise property on this date. A lien attaches to each taxable property to ensure property tax payment. January 1 - April 30 CAD completes appraisals and processes applications for exemptions. April - May Appraisal districts send notices of appraised value. May 1 Appraisal review board begins hearing protests from property owners. July 1 Local taxing units may impose additional penalties for legal costs related to collecting unpaid taxes. August - September Local taxing units adopt tax rates. October 1 Local taxing units (or county tax assessor -collector, acting on their behalf) begin sending tax bills to property owners. January 31 Taxes due to local taxing units (or county tax assessor -collector, if acting on their behalf). February 1 Local taxing units begin charging penalty and interest for unpaid tax bills. Penalties and Interest According to the Collin County Tax Collector's offices, If taxes are not paid by January 31St, penalties and interest will accrue are follows: If tax paid in: Penalty _ Interest _ Total February 6% + 1% = 7% March 7% + 2% = 9% April 8% + 3% = 11% May 9% + 4% = 13% June 10% + 5% = 15% July 12% + 6% = 18% Penalties reach a maximum of 12% and interest of 1% is added each month after the due date. All real property accounts not paid in full by June 30th of the year in which they become delinquent will be referred to the delinquent tax attorney for enforced collection and will incur an additional penalty equal to 15% - 20% of the total taxes, penalties, and interest due. Historical Levy and Collection Summary According to City records, on average 97 percent of real property taxes were paid within the fiscal year they were levied from 2006 to 2014, as shown below in Table II -A. 6 Draft TABLE II -A Summary of Levy and collections Year Total Tax Levy' Collected within the Fiscal Year of the Levy Amount' Percentage Collections in subsequent Years2 2006 $1,186,370 $1,132,491 95.46% $53,879 2007 $1,541,817 $1,494,560 96.93% $47,257 2008 $2,038,288 $1,963,103 96.31% $75,185 2009 $2,247,895 $2,189,575 97.41% $58,320 2010 $2,407,914 $2,344,075 97.35% $63,839 2011 $2,418,445 $2,340,959 96.80% $77,486 2012 $2,346,442 $2,275,419 96.97% $71,023 2013 $2,483,857 $2,436,406 98.09% $47,451 2014 $2,807,140 $2,757,013 98.21%$50,127 Source: City of Anna audited financial statements 1— Amounts reported as property tax revenue in the city audited financial statements. 2 — Amounts reported as property taxes receivable as of the end of each year. 3 — Amounts calculated as the difference between property tax revenues and property taxes receivable as of the end of each fiscal year. Tax Sale According to the Collin County Tax Collector's website, tax sales are held once orders of sale are issued from the district courts in reference to tax judgments for delinquent taxes. Real property being sold as a result of a foreclosure to satisfy delinquent taxes is required by Texas law to be sold on the first Tuesday of the month. All counties have sales on the same day. Tax Rates Tax rates are set on an annual basis by the City. For fiscal year 2015, the real property tax rate in the City is $0.639000 per $100 of assessed value. City tax rates have fluctuated in past years. It is likely that the tax rate will continue to change overtime; for purposes of this study, however, it is assumed that the tax rate will remain at its current level in future years. The City intends to apply approximately 50 percent of the incremental taxes generated from the development of the property in the PID, which property is also contained in the TIRZ, for the repayment of a portion of the PID Bonds issued to finance the improvements referenced in this Project and Finance Plan. Table II -B provides historical tax rates in the City from fiscal years 2006 to 2015. 7 Draft TABLE II -B City of Anna Historical Tax Rates 2006-2015 Tax Year City Tax Rate Per $100 Assessed Value 2006 $0.525000 2007 $0.575000 2008 $0.575000 2009 $0.622733 2010 $0.650332 2011 $0.650332 2012 $0.650332 2013 $0.650332 2014 $0.649000 2015 $0.639000 Source: CAD historical tax rates summary 8 Draft III. Historical Appreciation in Taxable Values Property values typically appreciate over time. The City total taxable assessed value (TAV) information from 2006 to 2015, as shown in the CAD certified totals for tax years 2006 through 2015, indicate that the aggregate TAV for single family homes has increased from year to year except in 2010 through 2012. Table III -A shows the average annual appreciation of assessed values in the City from 2006 to 2015. The percentage growth in any given year indicates the appreciation over the prior year and is not cumulative. TABLE I11 -A Historical Appreciation in Values Year Single Family (SF) Homes TAV New construction SF Homes TAV Net Existing SF Homes TAV Growth % Total SF Homes Average Home Value Growth % 2006 $199,527,259 $31,604,670 $167,922,589 1984 $100,568 2007 $263,024,626 $28,471,493 $234,553,133 18.19% 2287 $115,009 6.94% 2008 $296,002,445 $11,862,915 $284,139,530 10.06% 2488 $118,972 1.71% 2009 $295,837,682 $5,897,500 $289,940,182 1.02% 2584 $114,488 -1.90% 2010 $288,215,832 $979,167 $287,236,665 -0.47% 2615 $1109216 -1.88% 2011 $282,164,842 $899,486 $281,265,356 -1.04% 2653 $106,357 -1.77% 2012 $287,226,986 $6,014,449 $281,212,537 -0.01% 2859 $100,464 -2.81% 2013 $331,222,971 $21,688,228 $309,534,743 4.91% 3126 $105,957 2.70% 2014 $419,875,700 $30,278,959 $389,596,741 12.19% 3483 $120,550 6.66% 2015 $509,719,967 $36,441,651 $473,278,316 10.22% 3666 $139,040 7.40% 10 -Yr Averages 6.12% 1.89% CAGR - 10 Yr 9.83% 10.92% 3.29% CAGR -5Yr 12.56% 10.91% 5.51% CAGR - 3 Yr 15.45% 15.20% 9.48% Source — Collin CAD certified totals for tax years 2006 through 2015. Based on the annual appreciation rates shown in Table III -A, the 10 -yr average annual growth rate of average home values from 2006 to 2015 is approximately 1.89 percent, the compound annual growth rate of average home values from 2006 to 2015 is approximately 3.29 percent, the compound annual growth rate of average home values from 2011 to 2015 is approximately 5.51 percent and the compound growth rate of average home values from 2013 to 2015 is equal to 9.48 percent. A future annual appreciation rate of 1.89 percent for all property, representing the lowest average growth rate computed using the three different value estimation bases shown in Table III- A (total TAV of single family homes, total TAV of single family homes net of new construction value and average home values) has been used for this study to project future appreciated assessed values through estimated build out in 2026 and the estimated home values are held constant after 9 Draft build out. Based on the historic trends outlined in this section, this rate is believed to be conservative. 10 Draft IV. Project Plan Pursuant to Ordinance No. (the "TIRZ Ordinance"), the City created Reinvestment Zone No. _, City of Anna, Texas as a TIRZ under the provisions of Chapter 311 of the Texas Tax Code, as amended. The land within the TIRZ is comprised of approximately 368 acres and is coterminous with the land within the PID. As more fully described in subsequent sections of this report, approximately 654 residential units are planned for the TIRZ. The City is planning to issue bonds for the purpose of financing public improvements necessary for the improvements in the PID. Tax increment financing is a redevelopment and financing tool by which governments can provide financial assistance to fund infrastructure for eligible public and private redevelopment efforts within an officially designated area of the development. Increases in property tax revenues, which are generated primarily from new investment in the TIRZ, are allocated to pay debt service on debt issued to pay for such infrastructure costs within the TIRZ. LOCATION The TIRZ is approximately 45 miles from Dallas, Texas, and approximately 70 miles from Fort Worth, Texas. A map and metes and bounds of the TIRZ, as well as the corresponding proposed development, are included as Appendix A to this Plan. ECONOMIC AND DEMOGRAPHIC INFORMATION According to the City website, the City is located on State Highway 5, Farm Road 455, and U.S. Highway 75 eleven miles northeast of McKinney in north central Collin County. According to City -Data, the population of the City has grown by approximately 27.6 percent between 2010 and 2014 (US Census Bureau quick facts). According to City -Data, the average unemployment rate of the City was 5 percent, compared to 5.5 percent for the State of Texas and 5.3 percent nationally (City-Data.com/city/Anna-Texas; Bureau of Labor Statistics) for June 2014. The 2013 median household income for the City was $66,243 and the median home price was $137,315, compared to the 2013 median household income of $51,704 and the median home price of $132,000 for the State of Texas (City-Data.com/city/Anna-Texas). EXISTING USES OF PROPERTY According to the Developer and CAD records, the property within the TIRZ boundary is classified as of January 1, 2015 under agricultural land use. A site map showing the current uses of the property is included as Appendix A to this plan. PROPOSED DEVELOPMENT The TIRZ is proposed to be developed as a residential development with 654 residential units and is proposed to include four types of single family residential lots. The property in the TIRZ is 11 Draft anticipated to be developed into 49 100 -ft lots, 55 90 -foot lots, 185 80 -foot lots and 365 70 -foot lots to be developed in approximately three phases. Table IV -A summarizes the projected development of the TIRZ. Detailed estimation of absorption for the development as provided by the Developer on an annual basis is shown in Appendix D attached hereto. Appendix A at the end of this section provides a concept plan for the proposed development within the TIRZ. TABLE IV -A Summary of Proposed Development Proposed Lot Type Quantity 100 Ft Lots 49 units 90 Ft Lots 55 units 80 Ft Lots 185 units 70 Ft Lots 365 units Total 654 units Table IV -B below shows the proposed residential development within Phase 1. Table IV -B Proposed Development —Phase 1 Proposed Lot Type Quantity 90 Ft Lots 19 units 80 Ft Lots 103 units 70 Ft Lots 85 units Total 207 units Table IV -C on the following page shows the proposed residential lot types within the remaining future phases. Table IV -C Proposed Development — Future Phases other than Phase 1 Proposed Lot Type Quantity 100 Ft Lots 49 units 90 Ft Lots 36 units 80 Ft Lots 82 units 70 Ft Lots 280 units Total 447 units 12 Draft PROPOSED CHANGES Details regarding the proposed zoning for the development, which are included in the Subdivision Improvement Agreement between the Developer and the City (the "Subdivision Improvement Agreement") dated as of March 11, 2015, are shown as Appendix G to this plan. ESTIMATED NONPROJECT COSTS According to the project engineer, the total estimated amount of improvements planned to be constructed for the development is $45,407,244. As shown in Table V-A of this Project and Finance Plan, the total estimated amount of Project Costs eligible for TIRZ incremental revenue financing is $11,395,326. As a result, the total amount of public improvement costs that are not eligible for TIRZ incremental revenue financing ("Nonproject Costs") is estimated to be $34,011,918. Table IV -D shows a detailed list of these Nonproject Costs for public improvements as provided by the project engineer. Table IV -D Estimated Nonproject Costs 1 — The Project Costs shown here include the estimated Developer funded portion of $485,663. See Table V-A for details. METHOD OF RELOCATION The proposed development is being developed on vacant land. Accordingly, there are no persons to be relocated as a result of implementing the plan. 13 Total Description Estimated Costs Improvements: Road Improvements $16,487,798 Water Distribution System Improvements $2,579,602 Sanitary Sewer Collection System Improvements $7,093,708 Storm Drainage Collection System Improvements $1,520,401 Other Costs $11,919,282 Subtotal: Estimated improvement costs $39,600,791 Soft costs including engineering and testing $337,515 estimated bond issuance costs details in Appendix B $5,468,938 Subtotal: Estimated soft costs $5,806,453 Grand Total Improvement + Soft Costs $45,407,244 Less: Project Costs, ($11,395,326) Total Nonproject Costs $34,011,918 1 — The Project Costs shown here include the estimated Developer funded portion of $485,663. See Table V-A for details. METHOD OF RELOCATION The proposed development is being developed on vacant land. Accordingly, there are no persons to be relocated as a result of implementing the plan. 13 Draft V. Financing Plan PROJECT COSTS Section 311.002 of the Tax Increment Financing Act defines project costs as "the expenditures made or estimated to be made and monetary obligations incurred or estimated to be incurred by the municipality or county designating a reinvestment zone that are listed in the project plan as costs of public works, public improvements, programs, or other projects benefiting the zone, plus other costs incidental to those expenditures and obligations." Project costs include: (A) capital costs, including the actual costs of the acquisition and construction of public works, public improvements, new buildings, structures, and fixtures; the actual costs of the acquisition, demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and fixtures; the actual costs of the remediation of conditions that contaminate public or private land or buildings; the actual costs of the preservation of the facade of a public or private building; the actual costs of the demolition of public or private buildings; and the actual costs of the acquisition of land and equipment and the clearing and grading of land; (B) financing costs, including all interest paid to holders of evidences of indebtedness or other obligations issued to pay for project costs and any premium paid over the principal amount of the obligations because of the redemption of the obligations before maturity; (C) real property assembly costs; (D) professional service costs, including those incurred for architectural, planning, engineering, and legal advice and services; (E) imputed administrative costs, including reasonable charges for the time spent by employees of the municipality or county in connection with the implementation of a project plan; (F) relocation costs; (G) organizational costs, including the costs of conducting environmental impact studies or other studies, the cost of publicizing the creation of the zone, and the cost of implementing the project plan for the zone; (H) interest before and during construction and for one year after completion of construction, whether or not capitalized; (I) the cost of operating the reinvestment zone and project facilities; (J) the amount of any contributions made by the municipality or county from general revenue for the implementation of the project plan; (K) the costs of school buildings, other educational buildings, other educational facilities, or other buildings owned by or on behalf of a school district, community college district, or other political subdivision of this state; and (L) payments made at the discretion of the governing body of the municipality or county that the 14 Draft governing body finds necessary or convenient to the creation of the zone or to the implementation of the project plans for the zone. The estimated project costs for the development are presented in Table V-A below. The detailed project costs are presented in Appendix C of this plan. Table V-A Estimated TIRZ Project Costs Project Costs Total Estimated Project Costs Road Improvements $5,567,504 Water Distribution System Improvements $248,543 Sanitary Sewer Collection System Improvements $2,069,616 Less: Developer funded portion ($485,663) Subtotal: $7,400,000 Other estimated bond issuance related costs (details in Appendix B) $3,509,663 Total Estimated Project Costs $10,909,663 According to the Subdivision Improvement Agreement between the Developer and the City, the total construction cost portion of the Project Costs to be funded with the TIRZ increments is limited to $7,400,000. As a result, the total Project Costs eligible for TIRZ financing is equal to $10,909,663 ($7,400,000 + $3,509,663). Appendix F shows the estimated net bond debt service obligation related to the Project Costs is estimated to be $26,973,218. According to the Subdivision Improvement Agreement, the maximum amount of City commitments as TIRZ contribution is set not to exceed $21,048,883. See Appendix F for detailed calculations of these amounts. DESCRIPTION OF TIRZ PROJECTS The public improvements to be financed as TIRZ Projects include roadway, water and sewer improvements along FM 455, roadway, water and sewer improvements related to four collector roads, gravity mains, lift stations and trunk improvements detailed in Appendix B. The estimated costs of the TIRZ Projects eligible for financing through TIRZ incremental revenues are shown in Table V-A. The costs shown are estimates and may be revised in the future, including the addition of such other improvements as deemed necessary to further improve the properties within the TIRZ. METHOD OF FINANCING On February 24, 2015, the City of Anna City Council passed and approved Resolution No. 2015- 02.13 approving and authorizing the creation of the PID to finance the costs of certain public improvements for the benefit of property in the PID, all of which is within the City. The PID and the TIRZ boundaries are coterminous. The property in the PID is proposed to be developed in approximately three phases, and the PID will finance improvements for each phase as each phase is developed. Assessments will be imposed on 15 Draft the all property in the PID for the improvements that benefit the entire PID and on the property in each phase for the public improvements to be provided for that phase. As described in the Service and Assessment Plan of the PID (the "SAP"), the City will issue bonds (the "PID Bonds") in order to finance the improvements. The PID Bonds will be issued to finance the project costs shown in Table V-A. The City intends to apply approximately 50 percent of the incremental taxes generated from the development of the property in the PID, which property is also contained in the TIRZ, for the repayment of a portion of the PID Bonds issued to finance the improvements referenced in this Project and Finance Plan. The City has agreed to use TIRZ Revenues generated from each Parcel within the TIRZ to offset a portion of the PID Annual Installment on the parcel for the Project Costs (the "TIRZ Credit"). The PID Annual Installment for each Parcel shall be calculated by taking into consideration any TIRZ Credit applicable to each respective Parcel. ESTIMATED BONDED INDEBTEDNESS The project costs are anticipated to be financed with PID Bonds, which may be issued in multiple series. Table V -B below shows the estimated sources and uses of the PID Bonds. The detailed estimated annual PID Bond debt service schedule and the prorated debt service schedule related to the Project Costs are shown in Appendix C to this plan. Table V -B Estimated Sources and Uses — PID Bonds 16 PID Bonds City Major Other Major Sources of Funds Improvements Improvements Total Estimated Bond paramount $10,909,663 $6,090,337 $17,000,000 Total Sources $10,909,663 $6,090,337 $17,000,000 Uses of Funds Maior Improvements Road improvements $5,224,612 $1,982,947 $6,501,891 Water distribution system improvements $233,236 $158,806 $248,543 Sanitary sewer improvements $1,942,152 $246,399 $4,443,113 Storm drainage improvements $0 $0 $0 Other soft and miscellaneous costs $0 $395,933 $337,515 Subtotal $7,400,000 $2,784,085 $11,531,062 Estimated Bond issue costs $3,509,663 $1,959,275 $5,468,938 Total Uses $10,909,663 $4,743,360 $17,000,000 16 Draft ESTIMATED TIME OF EXPENDITURE Total public improvement costs in the estimated amount of $45,407,244 including the total Project Costs, are anticipated to be expended beginning 2016 through 2023. CURRENT TOTAL APPRAISED VALUES According to the Developer, there are five current parcels within the TIRZ boundary. According to the Collin CAD records, the 2015 total market value for the three parcels is $2,455,530. The total acreage of the three current parcels is 368 acres. Table V -C Current (2015) AUpraised Values Parcel ID Acreage 2015 Assessed Value' Collin County 2719039 181.89 $0 1001356 32.90 $493,455 2719040 22.28 $0 1007412 58.00 $870,000 2518072 73.96 $1,092,075 Total 369.03 $2,455,530 1 —The 2015 assessed value represents the 2015 market value shown in the Collin CAD records for the parcels, although the parcels are classified as agricultural use. DURATION OF THE TIRZ The TIRZ will last for a total of 30 years or until the estimated maximum amount of $21,048,883 representing the prorated amount of total bond obligations related to the TIRZ Project Costs is expended, whichever occurs earlier. See Appendix C for the detailed calculation of the prorated amount of total bond obligations. PROJECTED MARKET AND ASSESSED VALUE As described in the discussion on assessment procedures in the appraisal district, assessed values are based on values as appraised by CAD, which, in turn, are meant to represent fair market value of the properties. Different property types may be appraised using different methods, as described in Section II of this report. This section of the report includes the estimated assessed value and an explanation of the methodology used for each of the proposed development types of the TIRZ. Assumptions The properties are first assumed to be on the tax roll as developed property based on estimates of when the property will be substantially completed. No interim construction values are estimated in this report. For each property type, this study estimates future absorption based on the projected absorption as provided in the Developer's pro forma. 17 Draft As stated in Section V, the development plan for the District includes approximately 654 residential units. Based on the projected absorption from the developer's pro forma provided to the City, this plan assumes that the residential development will be built -out beginning in 2017 and continuing through 2026. For purposes of this plan, it is assumed that the project is absorbed at the pace contemplated by the Developer. According to the Developer, the sale of residential units is expected to start in 2017 and continue until the units are fully absorbed by 2026. Accordingly, the residential units are assumed to appear in the tax roll starting January 2018. Refer to Appendix D for detailed annual absorption figures. PROJECTED BASE SALES PRICES The projected average base homes prices for the residential units in the development as estimated by the developer are shown in Table V -D. TABLE V -D Base Asking Price Per Unit Project/Building Units Price Per Unit 100 ft residential units 49 $475,000 90 ft residential units 85 $427,500 80 ft residential units 185 $380,000 70 ft residential units 365 $332,500 Total 654 Source: the lot type, estimated units and projected asking prices are provided by the Developer. While it is possible that home buyers might negotiate the asking price, it is also believed that any discount from the base price will be offset by charges for buyer options such as exterior and interior finish upgrades, premium lot locations, and other potential upgrades. Therefore, this study assumes that units at the subject site achieve the average base asking average prices per unit shown in Table V -E. PROJECTED MARKET AND ASSESSED VALUE Based on the projected development and estimated home base asking price per unit outlined in Table V -D, the total projected assessed value for the development is shown in Table V -E. The total values shown in these tables assume full build -out and stabilized values using 2015 dollars. Detailed calculations of values are shown in the attached Appendices G at completion in tax year 2026. This study assumes an inflation rate of 1.89 percent based on the 10 -year average annual growth rate of average home values calculated and shown in Table III -A in order to account for the effect of market appreciation. INCREMENTAL ASSESSED VALUES 18 Draft As described in Section II of this Plan, the State of Texas mandates that property must be assessed at its market value. Projected incremental assessed value at full build -out is shown in Table V -E. TABLE V -E Projected Incremental Values at Full Build -Out Estimated Build out Year Projected Value Base Value Incremental Value 2026 $264,349,727 ($2,455,530) $261,894,197 Detailed calculations of incremental values are included in Appendices E and F to this plan. CALCULATION OF INCREMENTAL TAX REVENUE The increase in property value created within the TIRZ will produce additional real property taxes. In accordance with Texas statute, this incremental revenue is calculated by subtracting the base value from the new total assessed value to get the net incremental value, which is then multiplied by the applicable tax rate to determine the incremental tax revenue. Currently, the tax rate for the City is $0.639000 per $100 assessed value, as described in Section II of this report. The aggregate base value for properties located within the TIRZ is $2,455,530 based on the 2015 market values of the parcels in the TIRZ shown in the CAD records. At completion of the development, the property in the TIRZ is estimated to have an assessed value of $264,349,727 in 2026 using an assumed inflation rate of 1.89 percent per year through 2026. Incremental value is, therefore, estimated to be $261,894,197. Total projected incremental taxes are as shown in the following calculations. (Incremental Assessed Value) - 100 x (Tax Rate) = Incremental Real Property Tax $261,894,197 - 100 x $0.639000 = $1,673,504 Appendices E and F include detailed calculations of projected incremental taxes. Section II of this report describes various exemptions and credits that are available to certain properties within the City. For the purposes of this report, no credits are assumed to pertain to the property within the TIRZ. Therefore, total estimated tax increment revenues at full build -out of Phase 1 are as shown in Table V -F. TABLE V -F Projected Incremental Taxes Annual Incremental Taxes at Cumulative Total Through Build out Build -Out 1 Calendar Year 2045 Year 2026 $1,673,504 $39,730,436 'Scenarios A and B assume full build -out in calendar year 2026-27. 19 Draft Detailed calculations of these figures are included in the attached Appendices E and F. Pursuant to the TIRZ ordinance, the City has committed to use 50 percent of the incremental taxes for the payment of a portion of the debt service on the PID Bonds that have been issued to finance the projects described in this Project and Finance Plan. As a result, the total estimated tax increment revenues available for the payment of debt service at full build -out are as shown below in Table V -G. TABLE V -G Proiected Incremental Taxes Available for TIRZ Projects Annual Annual Incremental Taxes Incremental available for payment of Build out Year Taxes at PID Bond Build -Out debt service Payment 2026-27 $1,673,504 $19,865,218 PLAN FEASIBILITY As explained in the previous sections of this plan, the development is proposed to be developed on a vacant land. As shown in Table V -D, the current aggregate assessed value of the property in the development is $2,455,530 (shown as market value in the CAD records). Projected Absorption and Projected Build -out Total Home Values The development is projected to be fully built -out by 2026-27 based on the preliminary absorption estimated by the Developer. Phase 1 is anticipated to be fully built out by 2019. Phase 2 is anticipated to begin in the final previous Phase build -out year and is anticipated to be fully built by 2023. Phase 3 is anticipated to begin in 2022 while Phase 2 is still underway and anticipated to be fully built out by 2026-27 as shown in Table V -H. Table V -H Estimated Build -out by Current and Future Phases Phase Estimated Build out year No of Units Cumulative No. of Units 1 2019 207 207 2 and 3 2023 447 654 Note: Phase 2 and 3 are shown together as Phase 3 is anticipated to commence in 2022 before Phase 2 is fully built out. The detailed absorption is presented in Appendix D as estimated by the Developer for each Lot Type. The aggregate home value in the District is estimated to be $81.4 million based on the estimated 20 Draft absorption and projected home values provided by the Developer once Phase 1 is fully built. The aggregate home value in the District is estimated to be $264.3 million once Phase 2 and 3 are fully built. Table IV -1 below shows the estimated total home values by Phase once each Phase is fully built. Table V -I Estimated Build -out by Current and Future Phases Assuming the development is completed as planned, the proposed development is projected to generate an aggregate of $39.7 million in incremental taxes under a 1.89 estimated annual appreciation through build out over 30 years as shown in Table V -F. 50 percent of such annual TIRZ incremental revenues generated up to a maximum total amount of $21,048,883 are committed to be used for the payment of debt service on the PID Bonds used to finance the TIRZ Projects while the TIRZ is in existence As a result, the proposed plan of financing the project costs appears feasible. 21 Projected Taxable Estimated Build Values at Phase No of Units out year Build out 1 207 2019 $81,410,037 2 and 3 447 2026 $182,939,690 Total 654 $264,349,727 Assuming the development is completed as planned, the proposed development is projected to generate an aggregate of $39.7 million in incremental taxes under a 1.89 estimated annual appreciation through build out over 30 years as shown in Table V -F. 50 percent of such annual TIRZ incremental revenues generated up to a maximum total amount of $21,048,883 are committed to be used for the payment of debt service on the PID Bonds used to finance the TIRZ Projects while the TIRZ is in existence As a result, the proposed plan of financing the project costs appears feasible. 21 Draft VI. Assumptions & Limitations The valuation of property for real property tax purposes is determined by the CAD. This plan attempts to estimate how the CAD may estimate the value of the subject properties in the future. The values estimated by the CAD will almost certainly differ from the estimates included in this report. Values can change significantly over time, and these changes can be significantly higher or lower than values in previous years. Determining property values for tax purposes is not as straight forward or as simple as the analysis in this report. Many factors not considered in this report may impact actual future values. Furthermore, property values are not likely to be consistent from year to year. The CAD often relies on market data to estimate the value of property. Property values can be appealed, competition can be greater, national or local market conditions can change; in short, there are many factors that can affect the valuation of property. These factors make the projection of future values an imprecise exercise. The successful development of the subject properties is critical to the values estimated in the report. This report has assumed property taxes are paid as due. This study does not include an analysis to determine if the owners of property within the TIRZ will be able or willing to pay property taxes or if the tax collector will be able to collect unpaid taxes. The actual delinquencies in the payment of real property taxes in the TIRZ will likely be different than assumed in this report and a significant increase in the failure to pay property taxes would materially affect the tax increment revenues available for debt service on the bonds. This report estimates future tax increment revenues based on current real property tax rates. Scenarios do not assume real property tax rates in the future will be different than tax rates for fiscal year 2015. Real property tax rates have varied over the years and have declined over the years. Real property tax rates will likely vary significantly in future years and be different than assumed in this report and a significant decrease in real property tax rates could materially affect the tax increment revenues available for debt on the bonds. This report includes projections of tax increment revenues based on zero percent annual appreciation for real property. Changes in values will not be consistent from year to year. Future values are estimated based on values in 2015. Values in any future year may be less than values in 2015. This report assumes that the subject properties will be developed as projected in this report. A delay in the development of properties or changes to the program of development would reduce tax increment revenues during the years of the delay and could result in there being inadequate tax increment revenues to pay debt service on the bonds. No analysis has been conducted to determine if the subject properties are likely to be developed as projected. 22 Draft Numerous sources of information were relied on in the preparation of this report. These sources are believed to be reliable; however, no effort has been made to verify information obtained from other sources. In summary, this report necessarily incorporates numerous estimates and assumptions with respect to property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions will inevitably not materialize and unanticipated events and circumstance will occur. As a result, actual results will vary from the estimates in this report and the variations may be material. Other assumptions made in the preparation of this report and limiting conditions to this report are as follows: 1. There are no zoning, building, safety, environmental or other federal, state, or local laws, regulations, or codes that would prohibit or impair the development, marketing or operation of the subject properties in the manner contemplated in this report, and the subject properties will be developed, marketed and operated in compliance with all applicable laws, regulations, and codes. 2. No material changes will occur in (a) any federal, state or local law, regulation or code affecting the subject properties or (b) any federal, state or local grant, financing or other program to be utilized in connection with the subject properties. 3. The local, national and international economies will not deteriorate and there will be no significant changes in interest rates or in rates of inflation or deflation. 4. The subject properties will be served by adequate transportation, utilities and governmental facilities. 5. The subject properties will not be subjected to any war, energy crises, embargo, strike, earthquake, flood, fire or other casualty or act of God. 6. The subject properties will be developed, marketed, and operated in a highly professional manner. 7. There are no existing, impending or threatened litigation that could hinder the development, marketing, or operation of the subject properties. 8. MuniCap, Inc. does not have expertise in and has no responsibility for legal, environmental, architectural, geologic, engineering, and other matters related to the development and operation of the subject properties. 23 Draft Appendix A 24 4'27"W 387.J1' ,=L== PELOTON N 89°52'55"E LAND SOLUTIONS 10.975 JOHN W. FLLIOTT DR. STE 4001 FMSCO, TX 150551469-213-1600 465.63' N89°11'00"E 10'57"W 794.06' 2 32.18' 232. N89°15'32"E, 742.56' S90°00'00"E, 1755.97' N89°56'12" 71184.36' S01 °06'39" E R=700.00' 55.96' =205.39' —� D=16°48'41" M. 'D �? CD=204.65 S 15°42'02"W, 121.60' R=700.00' Ld =205.39' D=16°48'41" co CB=S7°17'41" W d CD=204.65 CD R=699.99' N23°08'27"W =116.43' 67.47' D=9°31'48" N88°26'26"W CB=S3°39'15"W 365.15' CD=116.30 R=700.03' =101.69' D=8'1 923" C) CB=S4°15'28"W 00 CD=101.60 co R=700.00' `- =530.61' Ld D=43°25'52" CB=S21 °48'40"W co CD=518.00 M M R=400.00' S43°31'37"W, 310.13' o =25.41' z D=00°02'48" CB=S43°40'02"W N89°58'14"W 849.21' CD=25.41 sc v S00°56'1IT 265.80' N89°44'50" 587.06' 4'27"W 387.J1' ,=L== PELOTON I I LAND SOLUTIONS 10.975 JOHN W. FLLIOTT DR. STE 4001 FMSCO, TX 150551469-213-1600 w MLoLo oo O �) CV U) o� �c� oN W OM M co 7 v� Lo Lo O M O O co EXHIBIT A - DEPICTION OF PROPERTY VILLAGES OF HURRICANE CREEK l) 75 24 Appendix B Estimated Improvement Costs Description Project Costs Non-TIRZ Major Improvement Costs Other Costs Total Costs Road Improvements $32,289 $0 $0 $32,289 FM 455 road improvements $907,882 $0 $0 $907,882 Collector A road improvements $286,387 $0 $0 $286,387 Collector B road improvements $1,403,833 $181,671 $0 $1,585,504 Collector C road improvements $2,654,816 $637,073 $0 $3,291,889 Collector D road improvements $314,586 $115,643 $0 $430,229 Other road improvements $0 $0 $9,985,907 $9,985,907 Subtotal $5,567,504 $934,387 $9,985,907 $16,487,798 Water Distribution System Improvements water improvements along FM 455 $20,897 $0 $0 $20,897 water improvements along Collector A $32,289 $0 $0 $32,289 water improvements along Collector B $15,375 $0 $0 $15,375 water improvements along Collector C $179,982 $0 $0 $179,982 Other water improvements $0 $0 $2,331,059 $2,331,059 Subtotal $248,543 $0 $2,331,059 $2,579,602 Sanitary Sewer Collection System Improvements Throckmorton LS to NTMWD sewer improvements $1,583,741 $0 $0 $1,583,741 Lift station trunk sewer FM sewer' $485,875 $0 $0 $485,875 Other sewer improvements $0 $2,373,497 $2,650,595 $5,024,092 Subtotal $2,069,616 $2,373,497 $2,650,595 $7,093,708 Storm Drainage Collection System Improvements $3,645,399 $28,407,244 $39,938,306 ($485,663) Drainage improvements $0 $0 $1,520,401 $1,520,401 Subtotal $0 $0 $1,520,401 $1,520,401 Other Costs Land costs $0 $0 $8,000,000 $8,000,000 Amenity center $0 $0 $2,000,000 $2,000,000 Trail system $0 $0 $600,000 $600,000 Retaining walls $0 $0 $784,800 $784,800 Miscellaneous costs $0 $0 $534,482 $534,482 Subtotal $0 $0 $11,919,282 $11,919,282 Soft Costs Flood study SWPPP and final platting fees Engineering review Geotechnical testing Subtotal Total Estimated Construction Costs Less: Estimated Developer funded portion Subtotal Estimated Bond issuance related costs Estimated capitalized interest Estimated debt service reserve Other estimated bond issuance related costs Subtotal $0 $25,000 $0 $25,000 $0 $12,595 $0 $12,595 $0 $5,000 $0 $5,000 $0 $294,920 $0 $294,920 $0 $337,515 $0 $337,515 $7,885,663 $3,645,399 $28,407,244 $39,938,306 ($485,663) $7,400,000 $1,527,353 $852,647 $0 $2,380,000 $872,773 $487,227 $0 $1,360,000 $1,109,537 $619,401 $0 $1,728,938 $3,509,663 $1,959,275 $0 $5,468,938 Total Estimated Costs $10,909,663 $5,604,674 $28,407,244 $45,407,244 Draft Draft Appendix C MuniCap 126 CITY OF ANNA TAX INCREMENT REINVESTMENT ZONE No. ANNA, TX Schedule C: Estimated Bond Debt Service - PID Bonds Total Draft Principal and Prepayment Delinquency Total Bond Year Principal Coupon Interest Interest Reserve Reserve Debt Service 1 $0 7.000% $1,190,000 $1,190,000 $34,000 $51,000 $1,275,000 2 $0 7.000% $1,190,000 $1,190,000 $34,000 $51,000 $1,275,000 3 $194,000 7.000% $1,190,000 $1,384,000 $34,000 $51,000 $1,469,000 4 $208,000 7.000% $1,176,420 $1,384,420 $33,612 $50,418 $1,468,450 5 $224,000 7.000% $1,161,860 $1,385,860 $33,196 $49,794 $1,468,850 6 $241,000 7.000% $1,146,180 $1,387,180 $32,748 $49,122 $1,469,050 7 $259,000 7.000% $1,129,310 $1,388,310 $32,266 $48,399 $1,468,975 8 $278,000 7.000% $1,111,180 $1,389,180 $31,748 $47,622 $1,468,550 9 $299,000 7.000% $1,091,720 $1,390,720 $31,192 $46,788 $1,468,700 10 $322,000 7.000% $1,070,790 $1,392,790 $30,594 $45,891 $1,469,275 11 $346,000 7.000% $1,048,250 $1,394,250 $29,950 $44,925 $1,469,125 12 $372,000 7.000% $1,024,030 $1,396,030 $0 $73,145 $1,469,175 13 $400,000 7.000% $997,990 $1,397,990 $0 $71,285 $1,469,275 14 $430,000 7.000% $969,990 $1,399,990 $0 $69,285 $1,469,275 15 $462,000 7.000% $939,890 $1,401,890 $0 $67,135 $1,469,025 16 $496,000 7.000% $907,550 $1,403,550 $0 $64,825 $1,468,375 17 $534,000 7.000% $872,830 $1,406,830 $0 $62,345 $1,469,175 18 $574,000 7.000% $835,450 $1,409,450 $0 $59,675 $1,469,125 19 $617,000 7.000% $795,270 $1,412,270 $0 $56,805 $1,469,075 20 $663,000 7.000% $752,080 $1,415,080 $0 $53,720 $1,468,800 21 $713,000 7.000% $705,670 $1,418,670 $0 $50,405 $1,469,075 22 $766,000 7.000% $655,760 $1,421,760 $0 $46,840 $1,468,600 23 $824,000 7.000% $602,140 $1,426,140 $0 $43,010 $1,469,150 24 $885,000 7.000% $544,460 $1,429,460 $0 $38,890 $1,468,350 25 $952,000 7.000% $482,510 $1,434,510 $0 $34,465 $1,468,975 26 $1,023,000 7.000% $415,870 $1,438,870 $0 $29,705 $1,468,575 27 $1,100,000 7.000% $344,260 $1,444,260 $0 $24,590 $1,468,850 28 $1,182,000 7.000% $267,260 $1,449,260 $0 $19,090 $1,468,350 29 $1,271,000 7.000% $184,520 $1,455,520 $0 $13,180 $1,468,700 30 $1,365,000 7.000% $95,550 $1,460,550 $0 $6,825 $1,467,375 Total $17,000,000 $24,898,790 $41,898,790 $357,306 $1,421,179 $43,677,275 Draft Breakdown of Estimated Bond Debt Service Payments City Major Improvements Portion 64.17% 35.83% Major Improvement Bonds 1- The estimated principal and interest shares of the TIRZ Major Improvements are calculated as 64.17% based on the total TIRZ Project Costs cap of $7.4mm and and the estimated total costs of $11.531mm for TIRZ and non-TIRZ major improvements. Bond interest is estimated at 7%. The estimated interest amounts also include 0.5% for prepayment and delinquency reserves. 1- The estimated principal and interest shares of the Non-TIRZ Major Improvements are calculated as 35.83% based on the total TIRZ Project Costs cap of $7.4mm and and the estimated total costs of $11.531mm for TIRZ and non-TIRZ major improvements. Bond interest is estimated at 7%. The estimated interest amounts also include 0.5% for prepayment and delinquency reserves. Draft TIRZ Major Improvements Other Major Improvements Estimated Total TIRZ Admin Combined Year Principal' Interest' Principah Interest Expenses Obligations 1 $0 $818,225 $0 $456,775 $0 $1,275,000 2 $0 $818,225 $0 $456,775 $20,000 $1,295,000 3 $124,499 $818,225 $69,501 $456,775 $20,000 $1,489,000 4 $133,483 $808,887 $74,517 $451,563 $20,000 $1,488,450 5 $143,751 $798,876 $80,249 $445,974 $20,000 $1,488,850 6 $154,661 $788,095 $86,339 $439,955 $20,000 $1,489,050 7 $166,212 $776,495 $92,788 $433,480 $20,000 $1,488,975 8 $178,405 $764,029 $99,595 $426,521 $20,000 $1,488,550 9 $191,882 $750,649 $107,118 $419,051 $20,000 $1,488,700 10 $206,642 $736,258 $115,358 $411,017 $20,000 $1,489,275 11 $222,044 $720,760 $123,956 $402,365 $20,000 $1,489,125 12 $238,729 $704,106 $133,271 $393,069 $20,000 $1,489,175 13 $256,698 $686,202 $143,302 $383,073 $20,000 $1,489,275 14 $275,950 $666,949 $154,050 $372,326 $20,000 $1,489,275 15 $296,486 $646,253 $165,514 $360,772 $20,000 $1,489,025 16 $318,305 $624,017 $177,695 $348,358 $20,000 $1,488,375 17 $342,692 $600,144 $191,308 $335,031 $20,000 $1,489,175 18 $368,362 $574,442 $205,638 $320,683 $20,000 $1,489,125 19 $395,957 $546,815 $221,043 $305,260 $20,000 $1,489,075 20 $425,477 $517,118 $237,523 $288,682 $20,000 $1,488,800 21 $457,564 $485,207 $255,436 $270,868 $20,000 $1,489,075 22 $491,577 $450,890 $274,423 $251,710 $20,000 $1,488,600 23 $528,798 $414,022 $295,202 $231,128 $20,000 $1,489,150 24 $567,944 $374,362 $317,056 $208,988 $20,000 $1,488,350 25 $610,941 $331,766 $341,059 $185,209 $20,000 $1,488,975 26 $656,505 $285,945 $366,495 $159,630 $20,000 $1,488,575 27 $705,919 $236,708 $394,081 $132,142 $20,000 $1,488,850 28 $758,542 $183,764 $423,458 $102,586 $20,000 $1,488,350 29 $815,658 $126,873 $455,342 $70,827 $20,000 $1,488,700 30 $875,982 $65,699 $489,018 $36,676 $20,000 $1,487,375 31 $0 $0 $0 $0 $0 $0 Total $10,909,663 $17,120,005 $6,090,337 $9,557,270 $580,000 $44,257,275 1- The estimated principal and interest shares of the TIRZ Major Improvements are calculated as 64.17% based on the total TIRZ Project Costs cap of $7.4mm and and the estimated total costs of $11.531mm for TIRZ and non-TIRZ major improvements. Bond interest is estimated at 7%. The estimated interest amounts also include 0.5% for prepayment and delinquency reserves. 1- The estimated principal and interest shares of the Non-TIRZ Major Improvements are calculated as 35.83% based on the total TIRZ Project Costs cap of $7.4mm and and the estimated total costs of $11.531mm for TIRZ and non-TIRZ major improvements. Bond interest is estimated at 7%. The estimated interest amounts also include 0.5% for prepayment and delinquency reserves. Draft Draft Appendix D MuniCap 127 CITY OF ANNA TAX INCREMENT REINVESTMENT ZONE No. ANNA, TX Schedule D: Projected Absorption - All Phases Assessment Year Debt Service Year Bond Year Ending Lot Type Annual 1 (100' Lot) Cumulative 1 -Jan -16 1 1 -Sep -16 0 0 1 -Jan -17 2 1 -Sep -17 0 0 1 -Jan -18 3 1 -Sep -18 0 0 1 -Jan -19 4 1 -Sep -19 0 0 1 -Jan -20 5 1 -Sep -20 0 0 1 -Jan -21 6 1 -Sep -21 0 0 1 -Jan -22 7 1 -Sep -22 0 0 1 -Jan -23 8 1 -Sep -23 0 0 1 -Jan -24 9 1 -Sep -24 0 0 1 -Jan -25 10 1 -Sep -25 25 25 1 -Jan -26 11 1 -Sep -26 24 49 1 -Jan -27 12 1 -Sep -27 55 49 1 -Jan -28 13 1 -Sep -28 49 1 -Jan -29 14 1 -Sep -29 49 1 -Jan -30 15 1 -Sep -30 49 1 -Jan -31 16 1 -Sep -31 49 1 -Jan -32 17 1 -Sep -32 49 1 -Jan -33 18 1 -Sep -33 49 1 -Jan -34 19 1 -Sep -34 49 1 -Jan -35 20 1 -Sep -35 49 1 -Jan -36 21 1 -Sep -36 49 1 -Jan -37 22 1 -Sep -37 49 1 -Jan -38 23 1 -Sep -38 49 1 -Jan -39 24 1 -Sep -39 49 1 -Jan -40 25 1 -Sep -40 49 1 -Jan -41 26 1 -Sep -41 49 1 -Jan -42 27 1 -Sep -42 49 1 -Jan -43 28 1 -Sep -43 49 1 -Jan -44 29 1 -Sep -44 49 1 -Jan -45 30 1 -Sep -45 49 1 -Jan -46 31 1 -Sep -46 49 1 -Jan -47 32 1 -Sep -47 49 1 -Jan -48 33 1 -Sep -48 49 Lot Type 2 (90' Lot) Annual Cumulative 0 0 0 0 1 1 4 5 4 9 4 13 4 17 2 19 11 30 25 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 Lot Type 3 (80' Lot) Annual Cumulative 0 0 0 0 22 22 44 66 37 103 24 127 13 140 24 164 21 185 64 185 29 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 Lot Type 4 (70' Lot) Annual Cumulative 0 0 0 0 24 24 48 72 13 85 64 149 64 213 59 272 64 336 29 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 Annual 0 0 47 96 54 92 81 85 96 79 24 0 0 0 0 Total Cumulative 0 0 47 143 197 289 370 455 551 630 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 Total 49 365 654 Note: The projected absorption schedule is provided by the developer. MuniCap, Inc. Draft Draft Draft Appendix E MuniCap 128 CITY OF ANNA TAX INCREMENT REINVESTMENT ZONE No. _ ANNA, TX Schedule E: Projected Assessed Value - All Phases MuniCap, Inc. I The estimated annual growth rate is calculated as the ten-year average annual growth rate of average home values in the city. 2 Estimated value per unit based on information provided by the developer. 3 The projections assume that the assessed value is approximately 94 percent of the estimated sales price as reported by the developer with 1.89% annual inflation factor. The 6% reduction is based on the ten-year average total exemption to taxable value ratios. Draft Draft Total Debt Bond 1.89% Lot Type 1 (100' Lot) Lot Type 2 (90' Lot) Lot Type 3 (80' Lot) Lot Type 4 (70' Lot) Estimated Estimated Estimated Assessment Service Year Inflation Value Per Market Value Per Market Value Per Market Value Per Market Market Assessment Assessed Year Year Ending Factor' Units Unit` Value Units Unit` Value Units Unit Value Units Unit Value Value Rate' Value 1 -Jan -16 I 1 -Sep -16 100.0% 0 $475,000 $0 0 $427,500 $0 0 $380,000 $0 0 $332,500 $0 $0 94% $0 I -Jan -17 2 1 -Sep -17 100.0% 0 $475,000 $0 0 $427,500 $0 0 $380,000 $0 0 $332,500 $0 $0 94% $0 1 -Jan -18 3 1 -Sep -18 100.0% 0 $483,994 $0 1 $435,595 $435,595 22 $387,196 $8,518,303 24 $338,796 $8,131,107 $17,085,005 94% $15,998,358 1 -Jan -19 4 1 -Sep -19 101.9% 0 $493,159 $0 5 $443,843 $2,219,217 66 $394,527 $26,038,810 72 $345,212 $24,855,228 $53,113,255 94% $49,735,126 1 -Jan -20 5 1 -Sep -20 103.8% 0 $502,498 $0 9 $452,248 $4,070,231 103 $401,998 $41,405,805 85 $351,748 $29,898,609 $75,374,645 94% $70,580,639 1 -Jan -21 6 1 -Sep -21 105.8% 0 $512,013 $0 13 $460;812 $5,990,550 127 $409,610 $52,020,502 149 $358,409 $53,402,936 $111,413,987 94% $104,327,793 1 -Jan -22 7 1 -Sep -22 107.8% 0 $521,708 $0 17 $469,537 $7,982,135 140 $417,367 $58,431,314 213 $365,196 $77,786,687 $144,200,136 94% $135,028,664 1 -Jan -23 8 1 -Sep -23 109.8% 0 $531,587 $0 19 $478,428 $9,090,139 164 $425,270 $69,744,228 272 $372,111 $101,214,184 $180,048,552 94% $168,597,035 1 -Jan -24 9 1 -Sep -24 111.9% 0 $541,653 $0 30 $487,488 $14,624,634 185 $433,322 $80,164,660 336 $379,157 $127,396,811 $222,186,105 94% $208,054,540 I -Jan -25 10 1 -Sep -25 114.0% 25 $551,910 $13,797,743 55 $496,719 $27,319,531 185 $441,528 $81,682,639 365 $386,337 $141,012,934 $263,812,847 94% $247,033,722 1 -Jan -26 11 1 -Sep -26 116.2% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -27 12 1 -Sep -27 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -28 13 1 -Sep -28 120.6% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -29 14 1 -Sep -29 122.9% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -30 15 1 -Sep -30 125.2% 49 $562,361 $27,555,667 55. $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -31 16 1 -Sep -31 127.6% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -32 17 1 -Sep -32 130.0% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -33 18 1 -Sep -33 132.5% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -34 19 1 -Sep -34 135.0% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 I -Jan -35 20 1 -Sep -35 137.6% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -36 21 1 -Sep -36 140.2% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -37 22 1 -Sep -37 142.8% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -38 23 1 -Sep -38 145.5% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -39 24 1 -Sep -39 148.3% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -40 25 1 -Sep -40 151.1% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -41 26 1 -Sep -41 153.9% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -42 27 1 -Sep -42 156.9% 49 $562,361 $27,555,667 55 $506,124 $27;836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -43 28 1 -Sep -43 159.8% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -44 29 1 -Sep -44 162.9% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -45 30 1 -Sep -45 165.9% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 MuniCap, Inc. I The estimated annual growth rate is calculated as the ten-year average annual growth rate of average home values in the city. 2 Estimated value per unit based on information provided by the developer. 3 The projections assume that the assessed value is approximately 94 percent of the estimated sales price as reported by the developer with 1.89% annual inflation factor. The 6% reduction is based on the ten-year average total exemption to taxable value ratios. Draft Draft Draft Appendix F MuniCap 129 CITY OF ANNA TAX INCREMENT REINVESTMENT ZONE No. _ ANNA, TX Schedule F: Projected Incremental Real Property Tax - All Phases $40,169,779 $39,730,436 $19,865,218 $26,973,218 $7,944,752 t The estimated annual growth rate is calculated as a 10 average annual growth rate of average home values in the city. 2 The projections assume that 50 percent of the incremental real property tax will be made availabel for the partial payment of debt service on the PID Bonds. ' The maximum amount of TIRZ related obligations is set not to exceed $21,048,883 per the Development Agreement. Mu,iCup, 1-. Draft Draft Estimated Debt Bond 1.89% Estimated Base Little Estimated Base Estimated Incremental Real Estimated Estimated Assessment Service Year Inflation Assessed Year Elm Tax Real Propert Year Incremental Real TIRZ Property Tax TIRZ related Developer Funded Year Year Ending Factor' Value Value Rate Tax Tax Property Tax Percentage2 Available Obligation93 Obligations Amount 1 -Jan -16 1 1 -Sep -16 100.0% $0 ($2,455,530) $0.6390 $0 ($15,691) $0 50% $0 $0 $0 1 -Jan -17 2 1 -Sep -17 100.0% $0 ($2,455,530) $0.6390 $0 ($15,691) $0 50% $0 $20,000 $20,000 1 -Jan -18 3 1 -Sep -18 101.9% $15,998,358 ($2,455,530) $0.6390 $102,230 ($15,691) $86,539 50% $43,269 $962,723 $962,723 1 -Jan -19 4 1 -Sep -19 103.8% $49,735,126 ($2,455,530) $0.6390 $317,807 ($15,691) $302,117 50% $151,058 $962,370 $919,101 1 -Jan -20 5 1 -Sep -20 105.8% $70,580,639 ($2,455,530) $0.6390 $451,010 ($15,691) $435,319 50% $217,660 $962,627 $811,569 1 -Jan -21 6 1 -Sep -21 107.8% $104,327,793 ($2,455,530) $0.6390 $666,655 ($15,691) $650,964 50% $325,482 $962,755 $745,096 1 -Jan -22 7 1 -Sep -22 109.8% $135,028,664 ($2,455,530) $0.6390 $862,833 ($15,691) $847,142 50% $423,571 $962,707 $637,225 1 -Jan -23 8 1 -Sep -23 111.9% $168,597,035 ($2,455,530) $0.6390 $1,077,335 ($15,691) $1,061,644 50% $530,822 $962,434 $538,863 1 -Jan -24 9 1 -Sep -24 114.0% $208,054,540 ($2,455,530) $0.6390 $1,329,469 ($15,691) $1,313,778 50% $656,889 $962,531 $431,709 1 -Jan -25 10 1 -Sep -25 116.2% $247,033,722 ($2,455,530) $0.6390 $1,578,545 ($15,691) $1,562,855 50% $781,427 $962,900 $306,011 1 -Jan -26 11 1 -Sep -26 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,803 $181,376 1 -Jan -27 12 1 -Sep -27 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,836 $126,084 1 -Jan -28 13 1 -Sep -28 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,900 $126,148 1 -Jan -29 14 1 -Sep -29 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,900 $126,148 1 -Jan -30 15 1 -Sep -30 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,739 $125,987 1 -Jan -31 16 1 -Sep -31 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,322 $125,570 1 -Jan -32 17 1 -Sep -32 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,836 $126,084 1 -Jan -33 18 1 -Sep -33 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,803 $126,051 1 -Jan -34 19 1 -Sep -34 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,771 $126,019 1 -Jan -35 20 1 -Sep -35 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,595 $125,843 1 -Jan -36 21 1 -Sep -36 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,771 $126,019 1 -Jan -37 22 1 -Sep -37 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,467 $125,715 1 -Jan -38 23 1 -Sep -38 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,819 $126,068 1 -Jan -39 24 1 -Sep -39 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,306 $125,554 1 -Jan -40 25 1 -Sep -40 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,707 $125,955 1 -Jan -41 26 1 -Sep -41 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,450 $125,699 1 -Jan -42 27 1 -Sep -42 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,627 $125,875 1 -Jan -43 28 1 -Sep -43 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,306 $125,554 1 -Jan -44 29 1 -Sep -44 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $962,531 $125,779 1 -Jan -45 30 1 -Sep -45 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $961,680 $124,928 $40,169,779 $39,730,436 $19,865,218 $26,973,218 $7,944,752 t The estimated annual growth rate is calculated as a 10 average annual growth rate of average home values in the city. 2 The projections assume that 50 percent of the incremental real property tax will be made availabel for the partial payment of debt service on the PID Bonds. ' The maximum amount of TIRZ related obligations is set not to exceed $21,048,883 per the Development Agreement. Mu,iCup, 1-. Draft Draft Draft Appendix G iMuniCap 1.30 CITY OF ANNA, TEXAS (Property rezoned under this ordinance is generally located on the north side of FM 455 and west of U.S. 75) ORDINANCE NO. AN ORDINANCE OF THE CITY OF ANNA, TEXAS AMENDING THE CITY'S COMPREHENSIVE PLAN, ZONING MAP, AND ZONING ORDINANCE AND CHANGING THE ZONING OF CERTAIN PROPERTY AS DESCRIBED HEREIN; PROVIDING FOR SAVINGS, REPEALING AND SEVERABILITY CLAUSES; PROVIDING FOR AN EFFECTIVE DATE; PROVIDING FOR A PENALTY CLAUSE NOT TO EXCEED $2,000 OR THE HIGHEST PENALTY AMOUNT ALLOWED BY LAW, WHICHEVER IS LESS; AND, PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF. WHEREAS, the City of Anna, Texas ("City") has previously adopted ordinances, rules and regulations governing the zoning in the City; and WHEREAS, the City has received a requested zoning change on Property described in Exhibit A and Exhibit B ("Property") attached hereto and incorporated herein for all purposes as if set forth in full; and WHEREAS, said Property generally located on the north side of FM 455 and west of U.S. 75 being rezoned from "PD - Single Family Residential" zoning district to "PD- Single Family Residential (PD) zoning; and WHEREAS, the Planning and Zoning Commission of the City and the City Council of the City of Anna ("City Council") have given the requisite notices by publication and otherwise and have held the public hearings as required by law and afforded a full and fair hearing to all property owners and generally to all persons interested in and situated in the affected area and in the vicinity thereof, the City Council has concluded that the Zoning Ordinance of the City should be amended as set forth below. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS THAT: Section 1. Recitals Incorporated The above recitals are incorporated herein by reference for all purposes. Section 2. Zoning Change The Comprehensive Plan of the City and City of Anna Ordinance No. 116-2003 as amended and codified as Part III -C of The Anna City Code of Ordinances are hereby amended by changing the zoning of the Property described in Exhibit A from PD - Single Family Residential to PD — Single Family Residential zoning. PURPOSE AND INTENT A. Purpose and Intent: This zoning submittal addresses the disposition of approximately 368 total acres of land within the City of Anna more fully described on the legal description attached as Exhibit A (the "Property") and depicted on Exhibit B. The uses proposed for the Property follow the intent of the City of Anna Comprehensive Plan dated March 2010. It is the intent of the Planned Development (PD) to offer greater flexibility for residential development. The purpose of the district is to create a master planned community featuring a mixture of housing types in a manner that will encourage sustainable neighborhoods and attract investment to the area. The purpose of this district is: a. To provide development and land use flexibility within the framework of a Planned Development zoning district. 2. The intent of this district is: a. To design streets and buildings which will contribute to creating safe neighborhoods. b. To provide an attractive environment for pedestrians which includes such things as buildings framing public space, street trees, lighting and canopies that will attract pedestrians. C. To contribute to the definition and use of public parks, ball fields and walking trails. d. Integrated parks and open space to preserve areas designated within the 100 -year floodplain. This will protect existing stream corridors and other physical assets as amenities. The Villages of Hurricane Creek PD is intended to provide the community with a mixture of housing types in a pattern and amount that will encourage sustainable neighborhoods and development. 4. The Villages of Hurricane Creek Concept Plan delineates the boundaries of the respective neighborhood areas (Exhibit B). The Development Standards shall apply to the entire Villages of Hurricane Creek District unless indicated otherwise. Housing mix, street types, building types and frontage standards for any particular area shall be controlled by the neighborhood areas delineated on the plan. B. Applicability: This Ordinance shall apply to all development within the PD boundaries. Unless otherwise stated herein, all ordinances of the City shall apply to The Villages of Hurricane Creek. II. DEFINITIONS Accessory Building or Use: (a) is subordinate to and serves a principal Building or principal Use; (b) is subordinate in area, extent, or purpose to the principal Building or principal Use served and is not physically connected to the principal Building; (c) contributes to the comfort, convenience and necessity of occupants of the principal Building or principal Use served; and (d) 2 is located on the same Building Lot as the principal Use served. If connected to the principal Building, a structure becomes part of the principal Building. Block: Property abutting on one side of the Street and lying between the nearest intersecting or intercepting Streets or nearest intercepting Street and railroad right-of-way, waterway, or other barrier to or gap in the continuity of development along such Street. Building: Any structure built for the support, shelter, or enclosure of persons, chattels, or movable property of any kind. When such structure is divided into separate parts by one or more unpierced walls extending from the ground up, each part is deemed a separate Building, except as regards minimum side yards. Building Line: A line parallel or approximately parallel to the Street line at a specific distance there from marking the minimum distance from the Street line that a Building may be erected. Court: An open, unoccupied space on the same Lot with a Building and bounded on two sides by such Building, or the Open Space provided for access to a dwelling group. District: A portion of the territory of the city within which certain uniform regulations and requirements or various combinations thereof apply under the provisions of this Part of the Code. The term "residential District" means any SF -E, SF -1, SF -84, SF -72, SF -60, SF -2, SF -Z, SF- TH, MH, or MF District; the term "commercial District" means any C-1, NC, C-2, C-3 or 0-1 District. Dwelling Unit: A room or a group of rooms including cooking accommodations, occupied by one Family, and in which not more than two persons, other than members of the Family, are lodged or boarded for compensation at any one time. Dwelling Unit, Single -Family: Detached means located on a Lot or separate Building tract and having no physical connection to a Building on any other Lot. Flood Plain: The land adjoining the channel of a river, stream, or watercourse that has been or may be covered by floodwater. Any land covered by the water of a 100 year frequency storm is considered in the Flood Plain and must comply with the engineering criteria found in the subdivision regulations and other relevant regulations of the City. Frontage: All the property abutting on one side of a Street between intersecting or intercepting Streets, or between a Street and a right-of-way, waterway, end of a dead-end Street, or village boundary measured along the Street line. An intercepting Street shall determine only the boundary of the Frontage on the side of the Street which it shall determine only the boundary of the Frontage on the side of the Street which it intercepts. Where a Lot abuts more than one Street, the planning and zoning commission shall determine the Frontage for purposes of the Part of the Code. Land Use Plan: The long-range plan for the desirable use of land in the City of Anna as officially adopted and as amended from time to time by the City Council, the purpose of such plan being, among other things, to serve as a guide in the zoning and progressive changes in the zoning of land to meet the changing needs, in the subdivision and Use of undeveloped land, and in the acquisition of rights-of-way or sites for public purposes such as Streets, parks, schools and public Buildings. Lot: The entire parcel of land occupied or to be occupied by a main Building and its Accessory Buildings, or by a group such as a dwelling group or automobile Court and their Accessory Buildings, including the yards and Open Spaces required therefore by this title and other applicable law. Lot, Corner: A Lot abutting on two intercepting or intersecting Streets where the interior angle of intersection or interception does not exceed 135°. Lot Coverage: The percentage of the total area of a Lot occupied by the base (first Story or floor) of Buildings located on the Lot. Lot, Interior: A Lot other than a corner Lot. Lot, Lines: The property lines bounding the Lot as defined herein. Lot, Through: A Lot having its front and rear on different Streets, or having its front or rear line on a Street and the other line on a river, lake, creek or other permanent body of water. Lot Depth: The average depth from the front line of the Lot to the rear line of the Lot. Lot Width: The width measured at a distance back from the front line equal to the minimum depth required for a Front Yard. Lot of Record: A Lot, which is part of a subdivision, the plat of which has been recorded in the office of the County Clerk of Collin County, or a parcel of land, the deed for which was recorded in the Office of the County Clerk, Collin County, prior to January 1, 1986. Main Building: A Building in which is conducted principal Use of the Lot on which it is situated. Open Space: That part of any Lot or tract that is used for recreational purposes, both passive and active, but not including areas used for parking or maneuvering of automobiles, or drives or approaches to and from parking areas, Floodplains, or 100% of any standing surface water, may be considered as Open Space, provided such Open Space is contiguous and part of the platted Lot and is maintained and utilized in the same manner and to the same degree as all other Open Space areas as is designated on the site plan as filed with the building permit application. Planned Development: Land under unified control, including developed as a whole; in a single development operation or a definitely programmed series of development operations, including all lands and Buildings; for principal and accessory structures and uses substantially related to the character of the District; according to comprehensive and detailed plans which include not only Streets, utilities, and Lots or Buildings sites, but also site plans, floor plans, and elevations of all Buildings as intended be located, constructed, used and related to each other, and detailed plans for other uses and improvements on the land as related to the Buildings; and with a program for provision, operation and maintenance of such areas, improvements, facilities, and 11 services as will be for common Use by some or all of the occupants of the District, but will not be provided, operated, or maintained at general public expense. Planned Development is both a concept and a zoning classification which may include, in addition to planned unit development, commercial, shopping center, and industrial uses or combination thereof, which may be intended to serve areas within the District and areas without the District. Rear Yard: The required Rear Yard is an Open Space unoccupied and unobstructed except for Accessory Uses extending across the rear of a Lot from one side Lot line to the other side Lot line, the depth of which is dependent upon the zoning District in which the Lot is located. Screening Element (Device): A barrier of permanent material of sufficient heights and density so that the objects being screened are not visible from any point on the Lot line when viewed from any height between ground level and seven feet above ground level and shall mean any of the following: (a) Any solid material constructed of brick, Masonry, or of a concrete or metal frame, or wood or base which supports a permanent type material, the vertical surface of which is not more than 30% open; (b) Any dense evergreen hedge or plant material suitable for providing a visual barrier, for which such material shall be maintained in a healthy growing condition; or (c) Landscaped earth berms may, when appropriate in scale, be considered and used as a Screening Element in lieu of a fence, wall, hedge, or other dense planting material. Street: A public or private thoroughfare which affords the principal means of access to abutting property. The Villages of Hurricane Creek Concept Plan (Exhibit B): The graphic plan for The Villages of Hurricane Creek that establishes and delineates the respective PD sub -districts such as the Village Center and other Neighborhoods. Thoroughfare: An officially designated federal or state numbered highway or county or other road or Street designated as a primary thoroughfare on the official Thoroughfare Plan of the City of Anna. Thoroughfare Plan: The official Thoroughfare Plan of the City of Anna adopted by the City Council establishing the location and official right-of-way width of principal highways and Streets in the city, together with all amendments thereto subsequently adopted. Use: The purpose for which land or a Building or structure thereon is designed, arranged intended or maintained or for which it is or may be used or occupied. This definition does not alter or affect the definition of Nonconforming Use as set forth in Section 39.01 of the Part. (Ord. No. 457-2009, adopted 08/25/09) Use, Accessory: A subordinate Use on the same Lot with the principal Use and incidental and accessory thereto. Yard: An Open Space, other than a Court, on the same Lot with a Building. W1 Yard, Front: A yard extending across the full width of a Lot and having a depth equal to the shortest distance between the front line of the Lot and the nearest portion of the main Buildings including an enclosed or covered porch, provided that the Front Yard depth shall be measured from the future Street line for a Street on which a Lot fronts, when such line is shown on the official map or is otherwise established. Yard, Rear: A yard extending across the full width of a Lot and having a depth equal to the shortest distance between the rear line of the Lot and the main Building. Yard, Side: A yard between the side line of the Lot and the main Building extending from the Front Yard to the Rear Yard and leaving a width equal to the shortest distance between said side line and the main Building. Zoning Map: The official Zoning Map of the City of Anna together with all amendments subsequently adopted. *Rules for Words and Phrases: For the purposes of the City of Anna Zoning Ordinance, words used in the present tense include the future tense; words in the singular number include the plural number, and words in the plural number include the singular number; the word "shall" is mandatory, not directory; the word "may" is permissive; the word "person" includes a firm, association, organization, partnership, trust, foundation, company, or corporation as well as an individual; the word "used" includes designed and intended or arranged to be used; the word "Building" includes the word "structure"; the word "Lot" includes "Building Lot" or parcel. Wherever the City of Anna Zoning Ordinance imposes a greater restriction than imposed by other ordinances, laws, or regulations, the provisions of the City of Anna Zoning Ordinance shall govern. III. LOT TYPE REGULATIONS The Villages of Hurricane Creek will include a specific lot type in order to achieve the goals established for the district. The lot type and requirement shall be as follows: A. Lot Type SF -84 (70' x 120'): 1. Purpose: The SF -84 Single Family Residential District is designed to accommodate Single Family Residential development on relatively ample Lots. The District can be appropriately located in proximity to agricultural and Single Family Residential Uses. 2. Permitted Uses: A Building or premise in a SF -84 District shall be used only for the purposes as listed in Appendix 2 of the City of Anna Zoning Ordinance. The Permitted Uses are as follows: a. Single family dwelling, detached; b. Community center (public and private); 0 c. Park, playground, or recreational center (public and private); d. School, public (primary and/or secondary); and e. Swimming pool (private) 3. Specific Use Permit: The following specific uses shall be permitted in a SF -84 District, when granted in accordance with Section 37 of the City of Anna Zoning Ordinance: a. Public, parochial, and private schools and colleges offering courses of general instruction and including convents, monasteries, dormitories, and other related living structures when located on the same site as the school or college. b. Churches, synagogues, chapels, and similar places of religions worship and instruction of a quiet nature when located in a substantial structure. c. Utility substations necessary to the functioning of the utility, but not including general business offices, maintenance facilities and other general system facilities, when located according to the yard space rules set forth in this part for dwellings and have a landscaped or masonry barrier on all sides. Building shall conform to all space limits of this zone and shall be of such exterior designs to harmonize with nearby properties. d. Public and quasi -public buildings for cultural use. e. Country clubs as defined herein. f. Uses as listed in Appendix 2 of the City of Anna Zoning Ordinance. 4. Plan Requirements: Except as otherwise specifically authorized in the City of Anna Subdivision Regulations, no building permit or Floodplain Development Permit shall be issued by the City for any parcel of land until a Final Plat — or Development Plat, as applicable —of the land has been recorded. 5. Height Regulations: No building shall exceed thirty-five feet (35'). 6. Area Regulations: The following minimum standards shall be required as measured from property lines: Lot Size: 8,400 square feet 7 B. Lot Coverage: The combined area covered by all main buildings and accessory structures shall not exceed fifty percent (50%) of the total lot area. Building Size: The minimum square footage of a dwelling unit, shall be two thousand (2,000) sf. Front Yard: 20 feet minimum Rear Yard: 15 feet minimum (the required Rear Yard shall be open and unobstructed to the sky from a point 30 inches above the average elevation of the Graded Rear Yard, except for Accessory Buildings as permitted herein. Eaves, covered porches, and roof extensions without structural support in the Rear Yard may extend into the rear yard a distance not to exceed four feet. Balconies shall not project into the required Rear Yard.) Side Yard, Interior: 5 feet minimum Side Yard, Corner Lot, Street Side: 15 feet minimum (45 feet where adjacent to single Family or duplex residential District) Lot Width: 70 feet minimum; (measured at the front building line) Lot Depth: 120 feet minimum Masonry (Brick or rock veneer): 80% 7. Parking Regulations: Two enclosed spaces behind the Front Yard line for single- family Dwelling Units and HUD Code manufactured homes. Other off -Street parking regulations are set forth in Section 38 of the City of Anna Zoning Ordinance. 8. Signs: Signs in this District shall comply with the requirements of the City of Anna Sign Ordinance (as amended). Lot Type SF -84 (80'x 120'): 1. Purpose: The SF -84 Single Family Residential District is designed to accommodate Single Family Residential development on relatively ample Lots. The District can be appropriately located in proximity to agricultural and Single Family Residential Uses. 2. Permitted Uses: A Building or premise in a SF -84 District shall be used only for the purposes as listed in Appendix 2 of the City of Anna Zoning Ordinance. The Permitted Uses are as follows: a. Single family dwelling, detached; b. Community center (public and private); c. Park, playground, or recreational center (public and private); d. School, public (primary and/or secondary); and e. Swimming pool (private) 3. Specific Use Permit: The following specific uses shall be permitted in a SF -84 District, when granted in accordance with Section 37 of the City of Anna Zoning Ordinance: a. Public, parochial, and private schools and colleges offering courses of general instruction and including convents, monasteries, dormitories, and other related living structures when located on the same site as the school or college. b. Churches, synagogues, chapels, and similar places of religions worship and instruction of a quiet nature when located in a substantial structure. c. Utility substations necessary to the functioning of the utility, but not including general business offices, maintenance facilities and other general system facilities, when located according to the yard space rules set forth in this part for dwellings and have a landscaped or masonry barrier on all sides. Building shall conform to all space limits of this zone and shall be of such exterior designs to harmonize with nearby properties. d. Public and quasi -public buildings for cultural use. e. Country clubs as defined herein. f. Uses as listed in Appendix 2 of the City of Anna Zoning Ordinance. 4. Plan Requirements: Except as otherwise specifically authorized in the City of Anna Subdivision Regulations, no building permit or Floodplain Development Permit shall be issued by the City for any parcel of land until a Final Plat — or Development Plat, as applicable —of the land has been recorded. 5. Height Regulations: No building shall exceed thirty-five feet (35'). E 6. Area Regulations: The following minimum standards shall be required as measured from property lines: Lot Size: 9,600 square feet Lot Coverage: The combined area covered by all main buildings and accessory structures shall not exceed fifty percent (50%) of the total lot area. Building Size: The minimum square footage of a dwelling unit, shall be two thousand (2,000) sf. Front Yard: 20 feet minimum Rear Yard: 15 feet minimum (the required Rear Yard shall be open and unobstructed to the sky from a point 30 inches above the average elevation of the Graded Rear Yard, except for Accessory Buildings as permitted herein. Eaves, covered porches, and roof extensions without structural support in the Rear Yard may extend into the rear yard a distance not to exceed four feet. Balconies shall not project into the required Rear Yard.) Side Yard, Interior: 5 feet minimum Side Yard, Corner Lot, Street Side: 15 feet minimum (45 feet where adjacent to single Family or duplex residential District) Lot Width: 80 feet minimum; (measured at the front building line) Lot Depth: 120 feet minimum Masonry (Brick or rock veneer): 80% 7. Parking Regulations: Two enclosed spaces behind the Front Yard line for single- family Dwelling Units and HUD Code manufactured homes. Other off -Street parking regulations are set forth in Section 38 of the City of Anna Zoning Ordinance. 8. Signs: Signs in this District shall comply with the requirements of the City of Anna Sign Ordinance (as amended). 10 C. Lot Type SF -84 (90' x 120'): 1. Purpose: The SF -84 Single Family Residential District is designed to accommodate Single Family Residential development on relatively ample Lots. The District can be appropriately located in proximity to agricultural and Single Family Residential Uses. 2. Permitted Uses: A Building or premise in a SF -84 District shall be used only for the purposes as listed in Appendix 2 of the City of Anna Zoning Ordinance. The Permitted Uses are as follows: a. Single family dwelling, detached; b. Community center (public and private); c. Park, playground, or recreational center (public and private); d. School, public (primary and/or secondary); and e. Swimming pool (private) 3. Specific Use Permit: The following specific uses shall be permitted in a SF -84 District, when granted in accordance with Section 37 of the City of Anna Zoning Ordinance: a. Public, parochial, and private schools and colleges offering courses of general instruction and including convents, monasteries, dormitories, and other related living structures when located on the same site as the school or college. b. Churches, synagogues, chapels, and similar places of religions worship and instruction of a quiet nature when located in a substantial structure. c. Utility substations necessary to the functioning of the utility, but not including general business offices, maintenance facilities and other general system facilities, when located according to the yard space rules set forth in this part for dwellings and have a landscaped or masonry barrier on all sides. Building shall conform to all space limits of this zone and shall be of such exterior designs to harmonize with nearby properties. d. Public and quasi -public buildings for cultural use. e. Country clubs as defined herein. f. Uses as listed in Appendix 2 of the City of Anna Zoning Ordinance. 11 4. Plan Requirements: Except as otherwise specifically authorized in the City of Anna Subdivision Regulations, no building permit or Floodplain Development Permit shall be issued by the City for any parcel of land until a Final Plat — or Development Plat, as applicable —of the land has been recorded. 5 7 Height Regulations: No building shall exceed thirty-five feet (35'). Area Regulations: The following minimum standards shall be required as measured from property lines: Lot Size: 10,800 square feet Lot Coverage: The combined area covered by all main buildings and accessory structures shall not exceed fifty percent (50%) of the total lot area. Building Size: The minimum square footage of a dwelling unit, shall be two thousand (2,000) sf. Front Yard: 20 feet minimum Rear Yard: 15 feet minimum (the required Rear Yard shall be open and unobstructed to the sky from a point 30 inches above the average elevation of the Graded Rear Yard, except for Accessory Buildings as permitted herein. Eaves, covered porches, and roof extensions without structural support in the Rear Yard may extend into the rear yard a distance not to exceed four feet. Balconies shall not project into the required Rear Yard.) Side Yard, Interior: 5 feet minimum Side Yard, Corner Lot, Street Side: 15 feet minimum (45 feet where adjacent to single Family or duplex residential District) Lot Width: 90 feet minimum; (measured at the front building line) Lot Depth: 120 feet minimum Masonry (Brick or rock veneer): 80% Parking Regulations: Two enclosed spaces behind the Front Yard line for single- family Dwelling Units and HUD Code manufactured homes. Other off -Street 12 parking regulations are set forth in Section 38 of the City of Anna Zoning Ordinance. 8. Signs: Signs in this District shall comply with the requirements of the City of Anna Sign Ordinance (as amended). D. Lot Type SF -84 (100' x 150'): 1. Purpose: The SF -84 Single Family Residential District is designed to accommodate Single Family Residential development on relatively ample Lots. The District can be appropriately located in proximity to agricultural and Single Family Residential Uses. 2. Permitted Uses: A Building or premise in a SF -84 District shall be used only for the purposes as listed in Appendix 2 of the City of Anna Zoning Ordinance. The Permitted Uses are as follows: a. Single family dwelling, detached; b. Community center (public and private); c. Park, playground, or recreational center (public and private); d. School, public (primary and/or secondary); and e. Swimming pool (private) 3. Specific Use Permit: The following specific uses shall be permitted in a SF -84 District, when granted in accordance with Section 37 of the City of Anna Zoning Ordinance: a. Public, parochial, and private schools and colleges offering courses of general instruction and including convents, monasteries, dormitories, and other related living structures when located on the same site as the school or college. b. Churches, synagogues, chapels, and similar places of religions worship and instruction of a quiet nature when located in a substantial structure. c. Utility substations necessary to the functioning of the utility, but not including general business offices, maintenance facilities and other general system facilities, when located according to the yard space rules set forth in this part for dwellings and have a landscaped or masonry barrier on all sides. Building shall conform to all space limits of this zone and shall be of such exterior designs to harmonize with nearby properties. 13 d. Public and quasi -public buildings for cultural use. e. Country clubs as defined herein. f. Uses as listed in Appendix 2 of the City of Anna Zoning Ordinance. 4. Plan Requirements: Except as otherwise specifically authorized in the City of Anna Subdivision Regulations, no building permit or Floodplain Development Permit shall be issued by the City for any parcel of land until a Final Plat — or Development Plat, as applicable — of the land has been recorded. 5. Height Regulations: No building shall exceed thirty-five feet (35'). 6. Area Regulations: The following minimum standards shall be required as measured from property lines: Lot Size: 15,000 square feet Lot Coverage: The combined area covered by all main buildings and accessory structures shall not exceed fifty percent (50%) of the total lot area. Building Size: The minimum square footage of a dwelling unit, shall be two thousand (2,000) sf. Front Yard: 20 feet minimum Rear Yard: 15 feet minimum (the required Rear Yard shall be open and unobstructed to the sky from a point 30 inches above the average elevation of the Graded Rear Yard, except for Accessory Buildings as permitted herein. Eaves, covered porches, and roof extensions without structural support in the Rear Yard may extend into the rear yard a distance not to exceed four feet. Balconies shall not project into the required Rear Yard.) Side Yard, Interior: 5 feet minimum Side Yard, Corner Lot, Street Side: 15 feet minimum (45 feet where adjacent to single Family or duplex residential District) Lot Width: 100 feet minimum; (measured at the front building line) 14 Lot Depth: 150 feet minimum Masonry (Brick or rock veneer): 80% 7. Parking Regulations: Two enclosed spaces behind the Front Yard line for single- family Dwelling Units and HUD Code manufactured homes. Other off -Street parking regulations are set forth in Section 38 of the City of Anna Zoning Ordinance. 8. Suns: Signs in this District shall comply with the requirements of the City of Anna Sign Ordinance (as amended). TABLE NO. 3-1 Land Use Summary LAND USE SUMMARY USE ACREAGE +/- SF LOTS SF DENSITY (UNITS/ACRE) PERCENTAGE SINGLE FAMILY RESIDENTIAL'PD-XX' - 50% MAXIMUM LOT COVERAGE 70'x 120' LOTS 84.07 365 4.34 51.4% 80'x 120' LOTS 45.32 185 4.08 27.7% 90' x 120' LOTS 14.61 55 3.76 8.9% 100' x 150' LOTS 19.70 49 2.49 12.0% TOTAL 163.7 654 4.00 44.5% OPEN SPACE 148.7 40.4% FIRE STATION 2.5 0.7% AMENITY CENTER 2.0 0.5% ROW DEDICATION 51.3 13.9% TOTAL 368.2 654 1.76 GROSS 100.0% IV. DEVELOPMENT AND DESIGN STANDARDS A. Accessory Buildings: All development within The Villages of Hurricane Creek Planned Development District shall comply with Section 35 of the City of Anna Zoning Ordinance in effect at the time of City Council approval of this ordinance. Nothing in this ordinance shall be construed as preventing any Architectural Control Committee with jurisdiction over any neighborhood from further restricting permission, location, and type of any accessory structure. 15 B. Screening and Fences: All development within The Villages of Hurricane Creek Planned Development District shall comply with Section 40 of the City of Anna Zoning Ordinance in effect at the time of City Council approval of this ordinance C. Landscape Standards: All development within The Villages of Hurricane Creek Planned Development District shall comply with the City of Anna Code of Ordinance Part I11 -E (Landscape Regulations) in effect at the time of City Council approval of this ordinance. 1. Tree Requirements: For all single-family and duplex parcels, builders shall be required to plant two large trees (minimum of three-inch caliper and seven feet high at time of planting) per lot prior to obtaining a certificate of occupancy. At least one of the trees shall be located in the front yard. Existing quality trees of at least three- inch caliper size located on the lot shall count to meet this standard if appropriate tree protection measures have been followed. (Ord. No. 56-2003, adopted 2/11/2003) Requirements for single family residential and duplex lots three-inch caliper trees selected from the Large Tree list in the City of Anna Landscape Regulations shall be planted on all single family residential, duplex, and town home lots. At least one of the trees must be placed in the front yard of the lot. Single Family Residential (SF -84) requires 3 trees. The following are approved large trees: Caddo Maple Pecan Shagbark Hickory DeodarCedar Texas Persimmon Black Walnut Eastern Black Walnut Red Cedar Eastern Red Cedar Sweetgum Southern Magnolia Chinese Pistachio Texas Pistache Bur Oak Chinquapin Oak Shumard Oak Texas Red Oak Live Oak Western Soapberry Bald Cypress Winged Elm American Elm Cedar Elm Chinese Elm Lace Bark Elm Siberian Elm 16 D. Off -Street Parking Requirements: All development within The Villages of Hurricane Creek Planned Development District shall comply with Section 38 of the City of Anna Zoning Ordinance. E. Residential Architectural Standards: 1) House repetition. a. Within residential developments, single family homes with substantially identical exterior elevations can only repeat every four (4) lots when fronting the same right-of-way including both sides of the street. b. Homes side by side or across the street within one house (directly across the street or "caddy corner" across the street) shall not have substantially identical exterior elevations. 2) Building Articulation. At least four facade articulation techniques are required on each single family home to add architectural variety and interest to a building. The following features shall be acceptable techniques of exterior articulation. a. A base course or plinth course; banding, moldings, or stringcourses; quoins; oriels; cornices; arches; balconies; brackets; shutters; keystones; dormers; louvers as part of the exterior wall construction. (Quoins and banding shall wrap around the corners of the structure for at least two feet. b. Horizontal banding continuing the length of the wall that faces a street, or other similar highly visible areas. c. The use of both stone and brick on the front elevations with a minimum of ten percent coverage of one of the elements. d. Front porch of at least 50 square feet. e. The installation of at least two (2) coach lights. f. Other techniques for Building Articulation can be substituted if administratively approved by the Administrative Official. 3) Roofs. a. Except for porch roofs and shed roofs, pitched roofs shall have a minimum slope of 6" x 12" (six inches vertical rise for every 12 inches horizontal run) and shall have an overhang at least 1' (one foot) beyond the building wall; however, the overhang shall not encroach into a setback more than one foot. Porch roofs and shed roofs must have a minimum pitch of 4" x 12". b. Roofing materials in all residential districts may only consist of architectural asphalt shingles (including laminated dimensional shingles), clay and concrete tile, metal shingles, mineral -surfaced row roofing, slate and slate -type shingles, wood shingles, wood shakes or an equivalent or better product as compared with said materials. Should architectural shingles be used as roofing material, said shingles shall be accompanied with a minimum 25 year warranty. Under no circumstances shall three -tab shingles be used as roofing material. 4) Garages. Garages maybe front facing orJ Swing type. 17 5) Fenestration. a. Windowless exterior walls, excluding garage doors that face a public right-of-way, or other similar highly visible areas are prohibited. On two story structures, windows are required on the first and second story facing a public right-of-way. b. Windows shall be in harmony with and proportionate to the rest of the structure. c. The use of reflective glass on residential structures is prohibited. Reflective glass will be defined as having a visible light reflectance rating of 15% or greater 6) Masonry Content. a. Except as noted below, the exterior walls (excluding windows and doors) on the First Floor Front Elevation of any single family home shall be 90 percent masonry and 80 percent on the second floor front elevation. The total cumulative surface area of the remaining exterior walls (excluding windows and doors) shall be 80% masonry. b. Except as noted below, the exterior walls (excluding windows and doors) on the Front Elevation of any multi -family structure shall be 100 percent masonry. The total surface area of the remaining exterior walls (excluding windows and doors) shall be 90% masonry. c. Second floor Dutch Gable Roof elements are not required to be masonry if setback at least 3 feet from the first floor front elevation vertical plane. 7) Exceptions to the Residential Architectural Standards in this section may be only occur after application and review by the Planning and Zoning Commission and approval by the City Council by Specific Use Permit. (Ord. No. 597-2012, adopted 10/23/2012) 18 V. DEVELOPMENT SCHEDULE Date Total Lots 2015 150 2016 250 2017 300 2018 375 2019 450 2020 550 2021 654 Home construction anticipated through the end of 2021. Section 3. Official Zoning Map The official Zoning Map of the City shall be corrected to reflect the change in zoning described herein. Section 4. Savings, Repealing and Severability Clauses It is hereby declared to be the intention of the City Council that the words, sentences, paragraphs, subdivisions, clauses, phrases, and provisions of this ordinance are severable and, if any phrase, sentence, paragraph, subdivision, clause, or provision of this ordinance shall be declared unconstitutional or otherwise invalid or inapplicable by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality, invalidity or inapplicability shall not affect any of the remaining words, sentences, paragraphs, subdivisions, clauses, phrases, or provisions of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional, invalid or inapplicable words, sentences, paragraphs, subdivisions, clauses, phrases, or provisions. Further, all ordinances or parts of ordinances in force when the provisions of this ordinance become effective that are consistent and do not conflict with the terms and provisions of this ordinance are hereby ratified to the extent of such consistency and lack of conflict, and all ordinances or parts of ordinances in force when the provisions of this ordinance become effective that are inconsistent or in conflict with the terms and provisions contained in this ordinance are hereby repealed only to the extent of any such conflict. 19 Section 5. Penalty Any violation of any of the terms of this ordinance, whether denominated in this ordinance as unlawful or not, shall be deemed a misdemeanor. Any person convicted of any such violation shall be fined in an amount not to exceed $2,000 for each incidence of violation. Each day a violation exists is considered a separate offense and will be punished separately. Section 6. Publication of the Caption and Effective Date This ordinance shall be effective upon its passage by the City Council, approval by the Mayor, and posting and/or publication, if required by law, of its caption. The City Secretary is hereby authorized and directed to implement such posting and/or publication. PASSED by the City Council of the City of Anna, Texas this day of 2014. ATTESTED: APPROVED: Natha Wilkison, City Secretary Mike Crist, Mayor 20 EXHIBIT "A" LEGAL DESCRIPTION BEING all that certain tract of land situated in then Joseph Boyle Survey, Abstract Number 105, the John Coffman Survey, Abstract Number 197 the J. M. Kincade Survey, Abstract Number 509 J. W. Mitchel Survey, Abstract Number 565 the W. Rattan Survey, Abstract Number 752 and the T. Rattan Survey, Abstract Number 785, Collin County, Texas and being all of a called 262.41 acre tract as described by deed to Villages of Hurricane Creek, LP recorded in Volume 5430, Page 9864 of County Records, Collin County, Texas and being part of a called 114.252 acre of land described by deed to Don Collins, et al recorded in Volume 5257, Page 4877 of said County Records and being more particularly described by metes and bounds as follows: BEGINNING at the southeast corner of said 262.41 acre tract, in the west line of said 114.252 acre tract: THENCE S 89°54'24"W, 2687.84 feet; THENCE N 00°04'27"W, 387.21 feet; THENCE N 89°58'14"W, 849.21 feet; THENCE N 03°33'44"E, 1188.00 feet; THENCE N 88°26'26"W, 365.15 feet; THENCE N 23°08'27"W, 67.47 feet; THENCE N 02°48'15"E, 1930.31 feet; THENCE N 89°5255"E, 465.63 feet; THENCE N 89°15'32"E, 742.56 feet; THENCE S 90°00'00"E, 1755.97 feet to the northeast corner of said 262.41 acre tract of land and being the northwest corner of said 114.252 acre tract; THENCE N 89°11'00"E, 794.06 feet; THENCE S 00°10'57"W, 232.18 feet; THENCE N 89°56'12"E, 1184.36 feet; THENCE S 01°06'39"E, 55.96 feet to the beginning of a curve to the right; THENCE with said curve to the right, an arc distance of 205.39 feet, through a central angle of 16°48'41", having a radius of 700.00 feet, the long chord which bears S 07°17'41"W, 204.65 feet; 21 THENCE S 15°42'02"W, 121.60 feet; THENCE with said curve to the left, an arc distance of 205.39 feet, through a central angle of 16°48'41", having a radius of 700.00 feet, the long chord which bears S 07°1741"W, 204.65 feet; THENCE S 01°06'39"E, 201.55 feet; THENCE with said curve to the right, an arc distance of 116.43 feet, through a central angle of 09°31'48", having a radius of 699.99 feet, the long chord which bears S 03°39'15"W, 116.30 feet; THENCE S 08°25'09"W, 393.86 feet; THENCE with said curve to the left, an arc distance of 101.69 feet, through a central angle of 08°19'23", having a radius of 700.03 feet, the long chord which bears S 04°15'28"W, 101.60 feet; THENCE S 00°0544"W, 1035.62 feet; THENCE with said curve to the right, an arc distance of 530.61 feet, through a central angle of 43°25'52", having a radius of 700.00 feet, the long chord which bears S 21°48'40"W, 518.00 feet; THENCE S 43°31'37"W, 241.38 feet; THENCE with said curve to the right, an arc distance of 25.41 feet, through a central angle of 00°02'48", having a radius of 400.00 feet, the long chord which bears S 43°40'02"W, 25.41 feet; THENCE N 89°44'50"W, 655.06 feet; THENCE S 00°56'11"E, 265.80 feet to the Point of Beginning and containing 16,037,378 square feet or 368.2 acres of land more or less. 22 EXHIBIT "B" CONCEPT PLAN 23 N Draft CITY OF ANNA TAX INCREMENT REINVESTMENT ZONE NO. _ PRELIMINARY PROJECT AND FINANCING PLAN December 3, 2015 MuniCap, Inc V1.3 Draft CITY OF ANNA TAX INCREMENT REINVESTMENT ZONE No. _ PRELIMINARY PROJECT AND FINANCING PLAN Table of Contents I Executive Summary 1 II Assessment and Tax Collection Procedures 3 III Historical Appreciation in Taxable Values 9 IV Project Plan 11 V Financing Plan 14 VI Assumptions and Limitations 22 List of Appendix Appendix A - Maps Appendix B — Estimated Project Costs Appendix C - Bond Debt Service Schedule Appendix D — Projected Absorption Appendix E — Projected Assessed Values Appendix F — Projected Incremental Real Estate Taxes Appendix G — Development Standards MuniCap, Inc V1.3 Draft I. Executive Summary PURPOSE OF TIRZ PROJECT AND FINANCING PLAN The purpose of this plan is to provide estimates of real property tax increment revenues resulting from the proposed Villages of Hurricane Creek development (the "Development") and available to offset assessments to be levied for repaying bonds to be issued by the City of Anna, Texas (the "City"). In particular, the study provides estimates of future real property tax increment revenues generated by the property within the City of Anna Tax Increment Reinvestment Zone No. _ (the "TIRZ"). As real property taxes are generated on an ad valorem basis from assessed values, it is first necessary to estimate the future assessed value resulting from the TIRZ. This plan provides assessed value information based on the following: • The development is completed as proposed by CADG Hurricane Creek, LLC (the "Developer"); • The units are sold according to the development pace estimated by the Developer, as summarized in subsequent sections of this report; • Property values are projected to increase at 1.89 percent annual rate of inflation through estimated build -out in calendar year 2025 as calculated based on the ten-year average growth rate of annual average single family home prices between 2006 and 2015; and • The real property tax rate remains static at the tax year 2015 level in future years. ORGANIZATION OF TIRZ PLAN This plan begins with a discussion of the assessment and tax collection procedures within the City. Following this discussion is an analysis of historic appreciation of taxable values within the City. The report continues with a project plan that includes a narrative description of the TIRZ. Next, an account of the proposed development within the TIRZ, including an estimate of the projected market and assessed values for the proposed properties, is provided. The report continues with a calculation of real property tax increment revenues based on the estimated assessed values in preceding sections of the report. Finally, the report provides comprehensive projections of all estimated available revenue created by the TIRZ and shows the estimated debt service coverage generated by this revenue. RESULTS In summary, the TIRZ financing analysis indicates that, assuming 1.89 percent annual inflation through estimated build -out in calendar year 2025, the TIRZ is estimated to have an incremental value of $264,349,727 million at the time of completion of all phases in calendar year 2025. Table I -A provides the projected total and incremental assessed value for the District after the projected build -out in calendar year 2025. Refer to Appendices E and F, attached hereto, for more information on the projected incremental value for each year. 1 Draft TABLE I -A Projected Assessed Values Year Projected Value Base Value' Incremental Value 2026 $264,349,727 ($2,455,530) $261,894,197 1 - The base value of $2,455,530 represents the 2015 market value shown in CAD records. The assessed values displayed in Table I -A are the basis for estimating incremental real property taxes. The projected incremental taxes are shown in Table I -B. The project is anticipated to be fully built out in calendar year 2025. Accordingly, the property in the TRIZ is anticipated to be assessed in full starting January 2026 and the related incremental taxes will become fully available starting 2027. TABLE I -B Projected Incremental Taxes Annual Incremental Taxes at Build -out Total Incremental Taxes through tax year 2045 $1,673,504 $39,730,436 Refer to Appendix F for projected tax increment revenues for each year. Estimates of annual debt service coverage are included in Appendix C of this report. The financing plan for the public improvements contemplates the issuance of special revenue bonds by the City secured by special assessments on property within the Villages of Hurricane Creek Public Improvement District ("PID Assessments"). The bonds secured by the PID Assessments are referred to as the "PID Bonds" and are estimated to total $30,000,000, $17,000,000 in bond par amounts of which is anticipated to be used to finance the major improvements including the Project Costs. The TIRZ Project Costs represent a portion of the total public improvements to be funded with the PID Bonds. As a result, real property tax increment revenues are intended to pay an equivalent portion the debt service on the PID Bonds and will be applied as discussed more fully in PID Service and Assessment Plan. 2 Draft IL Assessment and Tax Collection Procedures ASSESSMENT PROCEDURES Overview Pursuant to Texas Tax Code, all taxable property is appraised at its market value as of January 1 of each year. Each county in Texas is served by an appraisal district, which determines the value of all of the county's taxable property. Generally, local governments that collect property taxes, such as counties, cities and school districts, are members of the appraisal district. Methodology The appraisal districts use different valuation methods depending on property type and circumstances. A brief description of these methods follows. Cost Approach — As the name implies, the cost approach values property on the basis of the costs of development. The value of a structure is determined by estimating the cost to replace the building with a new structure and then subtracting depreciation. This method assumes the cost of replacing the existing building plus the value of the land equals market value. The steps in applying the cost approach include: • Estimating the site value (land and site improvements) through review of comparable sales; • Estimating the cost of replacing the existing building with one of similar usefulness (reflecting current building design and materials); and • Deducting all sources of depreciation, including physical deterioration ("wear and tear" on a building) and functional and economic obsolescence. Functional obsolescence is the reduced ability of the building to perform the function it was originally designed and built for. Economic obsolescence refers to external forces that affect the ability of the building to continue to perform, such as changes in transportation corridors and new types of building design demanded by the market. The cost approach is relied upon most often when the property being appraised is new or nearly new and income is not yet stabilized, where there are no comparable sales, or where the improvements are relatively unique or specialized. Market Data Comparison Approach — The market data comparison approach is based on the premise that the value of a specific property is set by the price an informed purchaser would pay for a comparable property, offering similar desirability and usefulness. For instance, if recent sales of condominium units within the same building indicate an increase in market values, all assessed values for condominiums in the building will be reassessed to reflect this increase in market value. This requires an understanding and comparison of market variables, such as location, property size, physical features and economic factors. The process of identifying and analyzing comparable property sales is repeated until a satisfactory range of value indicators for the subject property is established and a final estimate of value is possible. The limitations of the sales comparison approach are that it requires recent sales data for similar properties. The 3 Draft sales comparison approach is relied upon most often for appraising the sale of residential property and is most likely to be relevant for the proposed residential development in the TIRZ. According to the Collin Central Appraisal District ("CAD"), properties developed in new subdivisions are typically appraised based on the sales price of the new homes developed in the subdivisions using a market comparison approach to value. Income Approach — The income approach to value is based on the premise that the value of a property is directly related to the income it will generate. The appraisal districts analyze both the property's ability to produce future income and its expenses, and based on projected new income, estimates the property's value. The appraiser develops a capitalization rate by analyzing the sales of similar income properties and determining the relationship between the sale price and net income. The steps in applying the income capitalization approach are to determine the stabilized, net - operating income by: • Estimating potential gross income from all sources; • Deducting an allowance for vacancy and bad debts; and • Deducting all direct and indirect operating expenses. The resulting net operating income is capitalized by a market rate, which reflects the property type and effective date of valuation to produce an estimate of overall property value. To determine the effective gross income, the appraiser estimates market rents by analyzing rents, both within the property being assessed and in comparable properties in the neighborhood, and making an allowance for vacancy and collection loss. Net operating income is estimated by deducting operating expenses. The appraiser typically determines the capitalization rate by analyzing sales (comparing net operating income to sale price) in the same market for similar properties to determine the ratio of net operating income to sales price. The capitalization rate will vary depending on the attractiveness of a property as an investment, income risks and physical factors, among other factors. In the absence of sufficient sales data, the appraisal districts may use standard industry rates as generated by other sources to determine cap rates. The income approach is relied upon most often when appraising properties that produce a rental income from single or multiple tenants. The capitalized value of the income stream provides an estimate of the market value of the property (land and improvements). An appraisal district may use any of the three common methods to value property. The legislature also authorizes appraisal districts to use a method called mass appraisal to calculate the value of a large number of similar properties. According to Section 23.01(b) of the Texas Property Tax Code: if the appraisal district determines the appraised value of a property using mass appraisal standards, the mass appraisal standards must comply with the Uniform Standards of Professional Appraisal Practice. The same or similar appraisal methods and techniques shall 4 Draft be used in appraising the same or similar kinds of property. However, each property shall be appraised based upon the individual characteristics that affect the property's market value, and all available evidence that is specific to the value of the property shall be taken into account in determining the property's market value. Appeals According to the CAD, property owners may utilize the CAD appeal procedures if they have a concern about: • the market or appraised value of the property; • unequal appraisal of the property compared to other properties; • the inclusion of the property on the appraisal roll; • any exemptions that may apply to the property owner; • the qualification for an agricultural or timber appraisal; • the taxable status of the property; • the local governments which should be taxing the property; • the ownership of property; • a change of use of land receiving special appraisal; • any action taken by the chief appraiser, CAD or Appraisal Review Board ("ARB") that applies to and adversely affects the property. If property owners cannot resolve their concern informally with the CAD staff, they may have their cases heard by the ARB. The ARB is an independent board of citizens that review problems with appraisals or other concerns listed above. It has the power to order the CAD to make the necessary changes to solve problems. If a property owner files a written request for an ARB hearing (called a notice of protest) on or before May 31 (or 30 days after the notice of appraised value was mailed to the property owner, whichever is later), the ARB will set the case for a hearing. The property owner will receive written notice of the time, date, and place of the hearing. After it decides the case, the ARB must send them a copy of its order by certified mail. If the property owner is not satisfied with the decision, it has the right to appeal. If it chooses to go to court, the property owner must start the process by filing a petition within 60 days of the date it receives the ARB's order. In certain cases, as an alternative to filing an appeal in district court, the property owner may file not later than the 45th day after it receives notice of the ARB order a request for binding arbitration with the CAD. In certain cases originating in certain counties, as an alternative to filing an appeal in district court, the property owner may appeal to the State Office of Administrative Hearings (SOAH). An appeal to SOAH is initiated by not later than the 30th day after the property owner receives notice of the ARB's order by filing with the chief appraiser of the CAD a notice of appeal. CAD also takes a similar approach. TAXATION PROCEDURES Timeline The assessment and property tax process for each tax year includes the following steps: 5 Draft Dates Event January 1 CADS are required to appraise property on this date. A lien attaches to each taxable property to ensure property tax payment. January 1 - April 30 CAD completes appraisals and processes applications for exemptions. April - May Appraisal districts send notices of appraised value. May 1 Appraisal review board begins hearing protests from property owners. July 1 Local taxing units may impose additional penalties for legal costs related to collecting unpaid taxes. August - September Local taxing units adopt tax rates. October 1 Local taxing units (or county tax assessor -collector, acting on their behalf) begin sending tax bills to property owners. January 31 Taxes due to local taxing units (or county tax assessor -collector, if acting on their behalf). February 1 Local taxing units begin charging penalty and interest for unpaid tax bills. Penalties and Interest According to the Collin County Tax Collector's offices, If taxes are not paid by January 31St, penalties and interest will accrue are follows: If tax paid in: Penalty _ Interest _ Total February 6% + 1% = 7% March 7% + 2% = 9% April 8% + 3% = 11% May 9% + 4% = 13% June 10% + 5% = 15% July 12% + 6% = 18% Penalties reach a maximum of 12% and interest of 1% is added each month after the due date. All real property accounts not paid in full by June 30th of the year in which they become delinquent will be referred to the delinquent tax attorney for enforced collection and will incur an additional penalty equal to 15% - 20% of the total taxes, penalties, and interest due. Historical Levy and Collection Summary According to City records, on average 97 percent of real property taxes were paid within the fiscal year they were levied from 2006 to 2014, as shown below in Table II -A. 6 Draft TABLE II -A Summary of Levy and collections Year Total Tax Levy' Collected within the Fiscal Year of the Levy Amount2 Percentage Collections in subsequent Years3 2006 $1,186,370 $1,132,491 95.46% $53,879 2007 $1,541,817 $1,494,560 96.93% $47,257 2008 $2,038,288 $1,963,103 96.31% $75,185 2009 $2,247,895 $2,189,575 97.41% $58,320 2010 $2,407,914 $2,344,075 97.35% $63,839 2011 $2,418,445 $2,340,959 96.80% $77,486 2012 $2,346,442 $2,275,419 96.97% $71,023 2013 $2,483,857 $2,436,406 98.09% $47,451 2014 $2,807,140 $2,757,013 98.21%$50,127 Source: City of Anna audited financial statements 1— Amounts reported as property tax revenue in the city audited financial statements. 2 — Amounts calculated as the difference between property tax revenues and property taxes receivable as of the end of each fiscal year.. 3 — Amounts reported as property taxes receivable as of the end of each year. Tax Sale According to the Collin County Tax Collector's website, tax sales are held once orders of sale are issued from the district courts in reference to tax judgments for delinquent taxes. Real property being sold as a result of a foreclosure to satisfy delinquent taxes is required by Texas law to be sold on the first Tuesday of the month. All counties have sales on the same day. Tax Rates Tax rates are set on an annual basis by the City. For tax year 2015, the real property tax rate in the City is $0.639000 per $100 of assessed value. City tax rates have fluctuated in past years. It is likely that the tax rate will continue to change overtime; for purposes of this study, however, it is assumed that the tax rate will remain at its current level in future years. The City intends to apply approximately 50 percent of the incremental taxes generated from the development of the property in the PID, which property is also contained in the TIRZ, for the repayment of a portion of the PID Bonds issued to finance the improvements referenced in this Project and Finance Plan. Table II -B provides historical tax rates in the City from tax years 2006 to 2015. 7 Draft TABLE II -B City of Anna Historical Tax Rates 2006-2015 Tax Year City Tax Rate Per $100 Assessed Value 2006 $0.525000 2007 $0.575000 2008 $0.575000 2009 $0.622733 2010 $0.650332 2011 $0.650332 2012 $0.650332 2013 $0.650332 2014 $0.649000 2015 $0.639000 Source: CAD historical tax rates summary 8 Draft III. Historical Appreciation in Taxable Values Property values typically appreciate over time. The City total taxable assessed value (TAV) information from 2006 to 2015, as shown in the CAD certified totals for tax years 2006 through 2015, indicate that the aggregate TAV for single family homes has increased from year to year except in 2010 through 2012. Table III -A shows the average annual appreciation of assessed values in the City from 2006 to 2015. The percentage growth in any given year indicates the appreciation over the prior year and is not cumulative. TABLE I11 -A Historical Appreciation in Values Year Single Family (SF) Homes TAV New construction SF Homes TAV Net Existing SF Homes TAV Growth % Total SF Homes Average Home Value Growth % 2006 $199,527,259 $31,604,670 $167,922,589 1984 $100,568 2007 $263,024,626 $28,471,493 $234,553,133 18.19% 2287 $115,009 6.94% 2008 $296,002,445 $11,862,915 $284,139,530 10.06% 2488 $118,972 1.71% 2009 $295,837,682 $5,897,500 $289,940,182 1.02% 2584 $114,488 -1.90% 2010 $288,215,832 $979,167 $287,236,665 -0.47% 2615 $1109216 -1.88% 2011 $282,164,842 $899,486 $281,265,356 -1.04% 2653 $106,357 -1.77% 2012 $287,226,986 $6,014,449 $281,212,537 -0.01% 2859 $100,464 -2.81% 2013 $331,222,971 $21,688,228 $309,534,743 4.91% 3126 $105,957 2.70% 2014 $419,875,700 $30,278,959 $389,596,741 12.19% 3483 $120,550 6.66% 2015 $509,719,967 $36,441,651 $473,278,316 10.22% 3666 $139,040 7.40% 10 -Yr Averages 6.12% 1.89% CAGR - 10 Yr 9.83% 10.92% 3.29% CAGR -5Yr 12.56% 10.91% 5.51% CAGR - 3 Yr 15.45% 15.20% 9.48% Source — Collin CAD certified totals for tax years 2006 through 2015. Based on the annual appreciation rates shown in Table III -A, the 10 -yr average annual growth rate of average home values from 2006 to 2015 is approximately 1.89 percent, the compound annual growth rate of average home values from 2006 to 2015 is approximately 3.29 percent, the compound annual growth rate of average home values from 2011 to 2015 is approximately 5.51 percent and the compound growth rate of average home values from 2013 to 2015 is equal to 9.48 percent. A future annual appreciation rate of 1.89 percent for all property, representing the lowest average growth rate computed using the three different value estimation bases shown in Table III- A (total TAV of single family homes, total TAV of single family homes net of new construction value and average home values) has been used for this study to project future appreciated assessed values through estimated build out in calendar year 2025 and the estimated home values are held 9 Draft constant after build out. Based on the historic trends outlined in this section, this rate is believed to be conservative. (The remainder of this page is intentionally left blank) 10 Draft IV. Project Plan Pursuant to Ordinance No. (the "TIRZ Ordinance"), the City created Reinvestment Zone No. _, City of Anna, Texas as a TIRZ under the provisions of Chapter 311 of the Texas Tax Code, as amended. The land within the TIRZ is comprised of approximately 368 acres and is coterminous with the land within the PID. As more fully described in subsequent sections of this report, approximately 654 residential units are planned for the TIRZ. The City is planning to issue bonds for the purpose of financing public improvements necessary for the improvements in the PID. Tax increment financing is a redevelopment and financing tool by which governments can provide financial assistance to fund infrastructure for eligible public and private redevelopment efforts within an officially designated area of the development. Increases in property tax revenues, which are generated primarily from new investment in the TIRZ, are allocated to pay debt service on debt issued to pay for such infrastructure costs within the TIRZ. LOCATION The TIRZ is approximately 45 miles from Dallas, Texas, and approximately 70 miles from Fort Worth, Texas. A map and metes and bounds of the TIRZ, as well as the corresponding proposed development, are included as Appendix A to this Plan. ECONOMIC AND DEMOGRAPHIC INFORMATION According to the City website, the City is located on State Highway 5, Farm Road 455, and U.S. Highway 75 eleven miles northeast of McKinney in north central Collin County. According to City -Data, the population of the City has grown by approximately 27.6 percent between 2010 and 2014 (US Census Bureau quick facts). According to City -Data, the average unemployment rate of the City was 5 percent, compared to 5.5 percent for the State of Texas and 5.3 percent nationally (City-Data.com/city/Anna-Texas; Bureau of Labor Statistics) for June 2014. The 2013 median household income for the City was $66,243 and the median home price was $137,315, compared to the 2013 median household income of $51,704 and the median home price of $132,000 for the State of Texas (City-Data.com/city/Anna-Texas). EXISTING USES OF PROPERTY According to the Developer and CAD records, the property within the TIRZ boundary is classified as of January 1, 2015 under agricultural land use. A site map showing the current uses of the property is included as Appendix A to this plan. PROPOSED DEVELOPMENT The TIRZ is proposed to be developed as a residential development with 654 residential units and is proposed to include four types of single family residential lots. The property in the TIRZ is 11 Draft anticipated to be developed into 49 100 -ft lots, 55 90 -foot lots, 185 80 -foot lots and 365 70 -foot lots to be developed in approximately three phases. Table IV -A summarizes the projected development of the TIRZ. Detailed estimation of absorption for the development as provided by the Developer on an annual basis is shown in Appendix D attached hereto. Appendix A at the end of this section provides a concept plan for the proposed development within the TIRZ. TABLE IV -A Summary of Proposed Development Proposed Lot Type Quantity 100 Ft Lots 49 units 90 Ft Lots 55 units 80 Ft Lots 185 units 70 Ft Lots 365 units Total 654 units Table IV -B below shows the proposed residential development within Phase 1. Table IV -B Proposed Development —Phase 1 Proposed Lot Type Quantity 90 Ft Lots 19 units 80 Ft Lots 103 units 70 Ft Lots 85 units Total 207 units Table IV -C on the following page shows the proposed residential lot types within the remaining future phases. Table IV -C Proposed Development — Future Phases other than Phase 1 Proposed Lot Type Quantity 100 Ft Lots 49 units 90 Ft Lots 36 units 80 Ft Lots 82 units 70 Ft Lots 280 units Total 447 units 12 Draft PROPOSED CHANGES Details regarding the proposed zoning for the development, which are included in the Subdivision Improvement Agreement between the Developer and the City (the "Subdivision Improvement Agreement") dated as of March 11, 2015, are shown as Appendix G to this plan. ESTIMATED NONPROJECT COSTS According to the project engineer, the total estimated amount of improvements planned to be constructed for the development is $45,407,244. As shown in Table V-A of this Project and Finance Plan, the total estimated amount of Project Costs eligible for TIRZ incremental revenue financing is $11,395,326. As a result, the total amount of public improvement costs that are not eligible for TIRZ incremental revenue financing ("Nonproject Costs") is estimated to be $34,011,918. Table IV -D shows a detailed list of these Nonproject Costs for public improvements as provided by the project engineer. Table IV -D Estimated Nonproject Costs 1 — The Project Costs shown here include the estimated Developer funded portion of $485,663. See Table V-A for details. METHOD OF RELOCATION The proposed development is being developed on vacant land. Accordingly, there are no persons to be relocated as a result of implementing the plan. 13 Total Description Estimated Costs Improvements: Road Improvements $16,487,798 Water Distribution System Improvements $2,579,602 Sanitary Sewer Collection System Improvements $7,093,708 Storm Drainage Collection System Improvements $1,520,401 Other Costs $11,919,282 Subtotal: Estimated improvement costs $39,600,791 Soft costs including engineering and testing $337,515 estimated bond issuance costs details in Appendix B $5,468,938 Subtotal: Estimated soft costs $5,806,453 Grand Total Improvement + Soft Costs $45,407,244 Less: Project Costs, ($11,395,326) Total Nonproject Costs $34,011,918 1 — The Project Costs shown here include the estimated Developer funded portion of $485,663. See Table V-A for details. METHOD OF RELOCATION The proposed development is being developed on vacant land. Accordingly, there are no persons to be relocated as a result of implementing the plan. 13 Draft V. Financing Plan PROJECT COSTS Section 311.002 of the Tax Increment Financing Act defines project costs as "the expenditures made or estimated to be made and monetary obligations incurred or estimated to be incurred by the municipality or county designating a reinvestment zone that are listed in the project plan as costs of public works, public improvements, programs, or other projects benefiting the zone, plus other costs incidental to those expenditures and obligations." Project costs include: (A) capital costs, including the actual costs of the acquisition and construction of public works, public improvements, new buildings, structures, and fixtures; the actual costs of the acquisition, demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and fixtures; the actual costs of the remediation of conditions that contaminate public or private land or buildings; the actual costs of the preservation of the facade of a public or private building; the actual costs of the demolition of public or private buildings; and the actual costs of the acquisition of land and equipment and the clearing and grading of land; (B) financing costs, including all interest paid to holders of evidences of indebtedness or other obligations issued to pay for project costs and any premium paid over the principal amount of the obligations because of the redemption of the obligations before maturity; (C) real property assembly costs; (D) professional service costs, including those incurred for architectural, planning, engineering, and legal advice and services; (E) imputed administrative costs, including reasonable charges for the time spent by employees of the municipality or county in connection with the implementation of a project plan; (F) relocation costs; (G) organizational costs, including the costs of conducting environmental impact studies or other studies, the cost of publicizing the creation of the zone, and the cost of implementing the project plan for the zone; (H) interest before and during construction and for one year after completion of construction, whether or not capitalized; (1) the cost of operating the reinvestment zone and project facilities; (J) the amount of any contributions made by the municipality or county from general revenue for the implementation of the project plan; (K) the costs of school buildings, other educational buildings, other educational facilities, or other buildings owned by or on behalf of a school district, community college district, or other political subdivision of this state; and (L) payments made at the discretion of the governing body of the municipality or county that the 14 Draft governing body finds necessary or convenient to the creation of the zone or to the implementation of the project plans for the zone. The estimated project costs for the development are presented in Table V-A below. The detailed project costs are presented in Appendix C of this plan. Table V-A Estimated TIRZ Project Costs Project Costs Total Estimated Project Costs Road Improvements $5,567,504 Water Distribution System Improvements $248,543 Sanitary Sewer Collection System Improvements $2,069,616 Less: Developer funded portion ($485,663) Subtotal: $7,400,000 Other estimated bond issuance related costs (details in Appendix B) $3,509,663 Total Estimated Project Costs $10,909,663 According to the Subdivision Improvement Agreement between the Developer and the City, the total construction cost portion of the Project Costs to be funded with the TIRZ increments is limited to $7,400,000. As a result, the total Project Costs eligible for TIRZ financing is equal to $10,909,663 ($7,400,000 + $3,509,663). Appendix F shows the estimated net bond debt service obligation related to the Project Costs is estimated to be $27,263,218. According to the Subdivision Improvement Agreement, the maximum amount of City commitments as TIRZ contribution is set not to exceed $21,048,883. See Appendix F for detailed calculations of these amounts. DESCRIPTION OF TIRZ PROJECTS The public improvements to be financed as TIRZ Projects include roadway, water and sewer improvements along FM 455, roadway, water and sewer improvements related to four collector roads, gravity mains, lift stations and trunk improvements (the "TIRZ Projects") detailed in Appendix B. The estimated costs of the TIRZ Projects eligible for financing through TIRZ incremental revenues are shown in Table V-A. The costs shown are estimates and may be revised in the future, including the addition of such other improvements as deemed necessary to further improve the properties within the TIRZ. METHOD OF FINANCING On February 24, 2015, the City of Anna City Council passed and approved Resolution No. 2015- 02.13 approving and authorizing the creation of the PID to finance the costs of certain public improvements for the benefit of property in the PID, all of which is within the City. The PID and the TIRZ boundaries are coterminous. The property in the PID is proposed to be developed in approximately three phases, and the PID will finance improvements for each phase as each phase is developed. Assessments will be imposed on the all property in the PID for the improvements that benefit the entire PID and on the property in 15 Draft each phase for the public improvements to be provided for that phase. As described in the Service and Assessment Plan of the PID (the "SAP"), the City will issue bonds (the "PID Bonds") in order to finance the improvements. The PID Bonds will be issued to finance the project costs shown in Table V-A and other project improvement costs not covered by the TIRZ. The City intends to apply 50 percent of the incremental taxes generated and collected from the development of the property in the PID (the "TIRZ Revenues"), which property is also contained in the TIRZ, for the repayment of a portion of the PID Bonds issued to finance the improvements referenced in this Project and Finance Plan. The City has agreed to use TIRZ Revenues generated from each parcel within the TIRZ to offset a portion of the annual installments of the PID Assessment (the "Annual Installments") on the parcel for the Project Costs (the "TIRZ Credit"). The PID Annual Installment for each Parcel shall be calculated by taking into consideration any TIRZ Credit collected from each parcel in the immediately preceding year applicable to each respective parcel. ESTIMATED BONDED INDEBTEDNESS The project costs are anticipated to be financed with PID Bonds, which may be issued in multiple series. Table V -B below shows the estimated sources and uses of the PID Bonds anticipated to be issued to finance the major improvements including the Project Costs. The detailed estimated annual PID Bond debt service schedule and the prorated debt service schedule related to the Project Costs are shown in Appendix C to this plan. Table V -B Estimated Sources and Uses — PID Bonds 16 PID Bonds City Major Other Major Sources of Funds Improvements Improvements Total Estimated Bond par amount $10,909,663 $6,090,337 $17,000,000 Total Sources $10,909,663 $6,090,337 $17,000,000 Uses of Funds Major Improvements Road improvements $5,224,612 $1,982,947 $6,501,891 Water distribution system improvements $233,236 $158,806 $248,543 Sanitary sewer improvements $1,942,152 $246,399 $4,443,113 Storm drainage improvements $0 $0 $0 Other soft and miscellaneous costs $0 $395,933 $337,515 Subtotal $7,400,000 $2,784,085 $11,531,062 Estimated Bond issue costs $3,509,663 $1,959,275 $5,468,938 Total Uses $10,909,663 $4,743,360 $17,000,000 16 Draft ESTIMATED TIME OF EXPENDITURE Total public improvement costs in the estimated amount of $45,407,244 including the total Project Costs, are anticipated to be expended beginning 2016 through 2023. CURRENT TOTAL APPRAISED VALUES According to the Developer, there are five current parcels within the TIRZ boundary. According to the Collin CAD records, the 2015 total market value for the three parcels is $2,455,530. The total acreage of the three current parcels is 368 acres. Table V -C Current (2015) Appraised Values Parcel ID Acreage 2015 Assessed Value' Collin County 2719039 181.89 $0 1001356 32.90 $493,455 2719040 22.28 $0 1007412 58.00 $870,000 2518072 73.96 $1,092,075 Total 369.03 $2,455,530 1 —The 2015 assessed value represents the 2015 market value shown in the Collin CAD records for the parcels, although the parcels are classified as agricultural use. DURATION OF THE TIRZ The TIRZ will last for a total of 30 years or until the estimated maximum amount of $21,048,883 representing the prorated amount of total bond obligations related to the TIRZ Project Costs is expended, whichever occurs earlier. The TIRZ duration covers the tax years 2016 through tax year 2045. Pursuant to the Subdivision Improvement Agreement, the TIRZ Revenues may be used to offset PID Annual Installments through December 31, 2047. See Appendix C for the detailed calculation of the prorated amount of total bond obligations. PROJECTED MARKET AND ASSESSED VALUE As described in the discussion on assessment procedures in the appraisal district, assessed values are based on values as appraised by CAD, which, in turn, are meant to represent fair market value of the properties. Different property types may be appraised using different methods, as described in Section II of this report. This section of the report includes the estimated assessed value and an explanation of the methodology used for each of the proposed development types of the TIRZ. 17 Draft Assumptions The properties are first assumed to be on the tax roll as developed property based on estimates of when the property will be substantially completed. No interim construction values are estimated in this report. For each property type, this study estimates future absorption based on the projected absorption as provided in the Developer's pro forma. As stated in Section V, the development plan for the District includes approximately 654 residential units. Based on the projected absorption from the developer's pro forma provided to the City, this plan assumes that the residential development will be built -out beginning in calendar year 2017 and continuing through calendar year 2025. For purposes of this plan, it is assumed that the project is absorbed at the pace contemplated by the Developer. According to the Developer, the sale of residential units is expected to start in 2017 and continue until the units are fully absorbed by calendar year 2025. Accordingly, the residential units are assumed to appear in the tax roll starting January 2018. Refer to Appendix D for detailed annual absorption figures. PROJECTED BASE SALES PRICES The projected average base homes prices for the residential units in the development as estimated by the developer are shown in Table V -D. TABLE V -D Base Asking Price Per Unit Project/Building Units Price Per Unit 100 ft residential units 49 $475,000 90 ft residential units 85 $427,500 80 ft residential units 185 $380,000 70 ft residential units 365 $332,500 Total 654 Source: the lot type, estimated units and projected asking prices are provided by the Developer. While it is possible that home buyers might negotiate the asking price, it is also believed that any discount from the base price will be offset by charges for buyer options such as exterior and interior finish upgrades, premium lot locations, and other potential upgrades. Therefore, this study assumes that units at the subject site achieve the average base asking average prices per unit shown in Table V -E. PROJECTED MARKET AND ASSESSED VALUE Based on the projected development and estimated home base asking price per unit outlined in Table V -D, the total projected assessed value for the development is shown in Table V -E. The total values shown in these tables assume full build -out and stabilized values using 2015 dollars. Detailed calculations of values are shown in the attached Appendices G at completion in tax year 2026. This 18 Draft study assumes an inflation rate of 1.89 percent based on the 10 -year average annual growth rate of average home values calculated and shown in Table III -A in order to account for the effect of market appreciation. INCREMENTAL ASSESSED VALUES As described in Section II of this Plan, the State of Texas mandates that property must be assessed at its market value. Projected incremental assessed value at full build -out is shown in Table V -E. TABLE V -E Projected Incremental Values at Full Build -Out Estimated Build -out Tax Year Pro'ected Value Base Value Incremental Value 2026 $264,349,727 ($2,455,530) $261,894,197 Detailed calculations of incremental values are included in Appendices E and F to this plan. CALCULATION OF INCREMENTAL TAX REVENUE The increase in property value created within the TIRZ will produce additional real property taxes. In accordance with Texas statute, this incremental revenue is calculated by subtracting the base value from the new total assessed value to get the net incremental value, which is then multiplied by the applicable tax rate to determine the incremental tax revenue. Currently, the tax rate for the City is $0.639000 per $100 assessed value, as described in Section II of this report. The aggregate base value for properties located within the TIRZ is $2,455,530 based on the 2015 market values of the parcels in the TIRZ shown in the CAD records. At completion of the development, the property in the TIRZ is estimated to have an assessed value of $264,349,727 in tax year 2026 using an assumed inflation rate of 1.89 percent per year through tax year 2026. Incremental value is, therefore, estimated to be $261,894,197. Total projected incremental taxes are as shown in the following calculations. (Incremental Assessed Value) - 100 x (Tax Rate) = Incremental Real Property Tax $261,894,197 - 100 x $0.639000 = $1,673,504 Appendices E and F include detailed calculations of projected incremental taxes. Section II of this report describes various exemptions and credits that are available to certain properties within the City. For the purposes of this report, no credits are assumed to pertain to the property within the TIRZ. Therefore, total estimated tax increment revenues at full build -out of Phase 1 are as shown in Table V -F. 19 Draft TABLE V -F Projected Incremental Taxes Cumulative Total Through Estimated Build -out Annual Incremental Taxes at Calendar Year Tax Tax Year Build -Out I Year 2045 2026 $1,673,504 $39,730,436 'The analyses assume full build -out in calendar year 2025. Detailed calculations of these figures are included in the attached Appendices E and F. Pursuant to the TIRZ ordinance, the City has committed to use 50 percent of the incremental taxes collected for the payment of a portion of the debt service on the PID Bonds that have been issued to finance the projects described in this Project and Finance Plan. As a result, the total estimated tax increment revenues available for the payment of debt service at full build -out are as shown below in Table V -G. TABLE V -G Projected Incremental Taxes Available for TIRZ Proiects Annual Annual Incremental Taxes Incremental available for payment of Build -out Taxes at PID Bond Tax Year Build -Out debt service Daywent 2026 $1,673,504 $19,865,218 PLAN FEASIBILITY As explained in the previous sections of this plan, the development is proposed to be developed on a vacant land. As shown in Table V -D, the current aggregate assessed value of the property in the development is $2,455,530 (shown as market value in the CAD records). Projected Absorption and Projected Build -out Total Home Values The development is projected to be fully built -out by tax year 2026 based on the preliminary absorption estimated by the Developer. Phase 1 is anticipated to be fully built out by calendar year 2019. Phase 2 is anticipated to begin in the final previous Phase build -out year and is anticipated to be fully built by calendar year 2023. Phase 3 is anticipated to begin in calendar year 2022 while Phase 2 is still underway and anticipated to be fully built out by calendar year 2025 as shown in Table V -H. 20 Draft Table V -H Estimated Build -out by Current and Future Phases Phase Estimated Build out year No of Units Cumulative No. of Units 1 2019 207 207 2 and 3 2025 447 654 Note: Phase 2 and 3 are shown together as Phase 3 is anticipated to commence in 2022 before Phase 2 is fully built out. The detailed absorption is presented in Appendix D as estimated by the Developer for each Lot Type. The aggregate home value in the TIRZ is estimated to be $81.4 million based on the estimated absorption and projected home values provided by the Developer once Phase 1 is fully built. The aggregate home value in the District is estimated to be $264.3 million once Phase 2 and 3 are fully built. Table IV -I below shows the estimated total home values by Phase once each Phase is fully built. Table V -I Estimated Build -out by Current and Future Phases Assuming the development is completed as planned, the proposed development is projected to generate an aggregate of $39.7 million in incremental taxes under a 1.89 estimated annual appreciation through build out over 30 years as shown in Table V -F. 50 percent of such annual TIRZ incremental revenues generated up to a maximum total amount of $21,048,883 are committed to be used for the payment of debt service on the PID Bonds used to finance the TIRZ Projects while the TIRZ is in existence As a result, the proposed plan of financing the project costs appears feasible. 21 Projected Taxable Estimated Build Values at Phase No of Units out year Build out 1 207 2019 $81,410,037 2 and 3 447 2026 $182,939,690 Total 654 $264,349,727 Assuming the development is completed as planned, the proposed development is projected to generate an aggregate of $39.7 million in incremental taxes under a 1.89 estimated annual appreciation through build out over 30 years as shown in Table V -F. 50 percent of such annual TIRZ incremental revenues generated up to a maximum total amount of $21,048,883 are committed to be used for the payment of debt service on the PID Bonds used to finance the TIRZ Projects while the TIRZ is in existence As a result, the proposed plan of financing the project costs appears feasible. 21 Draft VI. Assumptions & Limitations The valuation of property for real property tax purposes is determined by the CAD. This plan attempts to estimate how the CAD may estimate the value of the subject properties in the future. The values estimated by the CAD will almost certainly differ from the estimates included in this report. Values can change significantly over time, and these changes can be significantly higher or lower than values in previous years. Determining property values for tax purposes is not as straight forward or as simple as the analysis in this report. Many factors not considered in this report may impact actual future values. Furthermore, property values are not likely to be consistent from year to year. The CAD often relies on market data to estimate the value of property. Property values can be appealed, competition can be greater, national or local market conditions can change; in short, there are many factors that can affect the valuation of property. These factors make the projection of future values an imprecise exercise. The successful development of the subject properties is critical to the values estimated in the report. This report has assumed property taxes are paid as due. This study does not include an analysis to determine if the owners of property within the TIRZ will be able or willing to pay property taxes or if the tax collector will be able to collect unpaid taxes. The actual delinquencies in the payment of real property taxes in the TIRZ will likely be different than assumed in this report and a significant increase in the failure to pay property taxes would materially affect the tax increment revenues available for debt service on the bonds. This report estimates future tax increment revenues based on current real property tax rates. Scenarios do not assume real property tax rates in the future will be different than tax rates for tax year 2015. Real property tax rates have varied over the years and have declined over the years. Real property tax rates will likely vary significantly in future years and be different than assumed in this report and a significant decrease in real property tax rates could materially affect the tax increment revenues available for debt on the bonds. This report includes projections of tax increment revenues based on 1.89 percent annual appreciation for real property. Changes in values may not be consistent from year to year. Future values are estimated based on estimated values in 2015. Values in any future year may be less than the estimated values in 2015. This report assumes that the subject properties will be developed as projected in this report. A delay in the development of properties or changes to the program of development would reduce tax increment revenues during the years of the delay and could result in there being inadequate tax increment revenues to pay debt service on the bonds. No analysis has been conducted to determine if the subject properties are likely to be developed as projected. 22 Draft Numerous sources of information were relied on in the preparation of this report. These sources are believed to be reliable; however, no effort has been made to verify information obtained from other sources. In summary, this report necessarily incorporates numerous estimates and assumptions with respect to property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions will inevitably not materialize and unanticipated events and circumstance will occur. As a result, actual results will vary from the estimates in this report and the variations may be material. Other assumptions made in the preparation of this report and limiting conditions to this report are as follows: 1. There are no zoning, building, safety, environmental or other federal, state, or local laws, regulations, or codes that would prohibit or impair the development, marketing or operation of the subject properties in the manner contemplated in this report, and the subject properties will be developed, marketed and operated in compliance with all applicable laws, regulations, and codes. 2. No material changes will occur in (a) any federal, state or local law, regulation or code affecting the subject properties or (b) any federal, state or local grant, financing or other program to be utilized in connection with the subject properties. 3. The local, national and international economies will not deteriorate and there will be no significant changes in interest rates or in rates of inflation or deflation. 4. The subject properties will be served by adequate transportation, utilities and governmental facilities. 5. The subject properties will not be subjected to any war, energy crises, embargo, strike, earthquake, flood, fire or other casualty or act of God. 6. The subject properties will be developed, marketed, and operated in a highly professional manner. 7. There are no existing, impending or threatened litigation that could hinder the development, marketing, or operation of the subject properties. 8. MuniCap, Inc. does not have expertise in and has no responsibility for legal, environmental, architectural, geologic, engineering, and other matters related to the development and operation of the subject properties. 23 Draft Appendix A 24 4'27"W 387.J1' ,=L== PELOTON N 89°52'55"E LAND SOLUTIONS 10.975 JOHN W. FLLIOTT DR. STE 4001 FMSCO, TX 150551469-213-1600 465.63' N89°11'00"E 10'57"W 794.06' 2 32.18' 232. N89°15'32"E, 742.56' S90°00'00"E, 1755.97' N89°56'12" 71184.36' S01 °06'39" E R=700.00' 55.96' =205.39' —� D=16°48'41" M. 'D �? CD=204.65 S 15°42'02"W, 121.60' R=700.00' Ld =205.39' D=16°48'41" co CB=S7°17'41" W d CD=204.65 CD R=699.99' N23°08'27"W =116.43' 67.47' D=9°31'48" N88°26'26"W CB=S3°39'15"W 365.15' CD=116.30 R=700.03' =101.69' D=8'1 923" C) CB=S4°15'28"W 00 CD=101.60 co R=700.00' `- =530.61' Ld D=43°25'52" CB=S21 °48'40"W co CD=518.00 M M R=400.00' S43°31'37"W, 310.13' o =25.41' z D=00°02'48" CB=S43°40'02"W N89°58'14"W 849.21' CD=25.41 sc v S00°56'1IT 265.80' N89°44'50" 587.06' 4'27"W 387.J1' ,=L== PELOTON I I LAND SOLUTIONS 10.975 JOHN W. FLLIOTT DR. STE 4001 FMSCO, TX 150551469-213-1600 w MLoLo oo O �) CV U) o� �c� oN W OM M co 7 v� Lo Lo O M O O co EXHIBIT A - DEPICTION OF PROPERTY VILLAGES OF HURRICANE CREEK l) 75 24 Appendix B Estimated Improvement Costs Description Project Costs Non-TIRZ Major Improvement Costs Other Costs Total Costs Road Improvements $32,289 $0 $0 $32,289 FM 455 road improvements $907,882 $0 $0 $907,882 Collector A road improvements $286,387 $0 $0 $286,387 Collector B road improvements $1,403,833 $181,671 $0 $1,585,504 Collector C road improvements $2,654,816 $637,073 $0 $3,291,889 Collector D road improvements $314,586 $115,643 $0 $430,229 Other road improvements $0 $0 $9,985,907 $9,985,907 Subtotal $5,567,504 $934,387 $9,985,907 $16,487,798 Water Distribution System Improvements water improvements along FM 455 $20,897 $0 $0 $20,897 water improvements along Collector A $32,289 $0 $0 $32,289 water improvements along Collector B $15,375 $0 $0 $15,375 water improvements along Collector C $179,982 $0 $0 $179,982 Other water improvements $0 $0 $2,331,059 $2,331,059 Subtotal $248,543 $0 $2,331,059 $2,579,602 Sanitary Sewer Collection System Improvements Throckmorton LS to NTMWD sewer improvements $1,583,741 $0 $0 $1,583,741 Lift station trunk sewer FM sewer' $485,875 $0 $0 $485,875 Other sewer improvements $0 $2,373,497 $2,650,595 $5,024,092 Subtotal $2,069,616 $2,373,497 $2,650,595 $7,093,708 Storm Drainage Collection System Improvements $3,645,399 $28,407,244 $39,938,306 ($485,663) Drainage improvements $0 $0 $1,520,401 $1,520,401 Subtotal $0 $0 $1,520,401 $1,520,401 Other Costs Land costs $0 $0 $8,000,000 $8,000,000 Amenity center $0 $0 $2,000,000 $2,000,000 Trail system $0 $0 $600,000 $600,000 Retaining walls $0 $0 $784,800 $784,800 Miscellaneous costs $0 $0 $534,482 $534,482 Subtotal $0 $0 $11,919,282 $11,919,282 Soft Costs Flood study SWPPP and final platting fees Engineering review Geotechnical testing Subtotal Total Estimated Construction Costs Less: Estimated Developer funded portion Subtotal Estimated Bond issuance related costs Estimated capitalized interest Estimated debt service reserve Other estimated bond issuance related costs Subtotal $0 $25,000 $0 $25,000 $0 $12,595 $0 $12,595 $0 $5,000 $0 $5,000 $0 $294,920 $0 $294,920 $0 $337,515 $0 $337,515 $7,885,663 $3,645,399 $28,407,244 $39,938,306 ($485,663) $7,400,000 $1,527,353 $852,647 $0 $2,380,000 $872,773 $487,227 $0 $1,360,000 $1,109,537 $619,401 $0 $1,728,938 $3,509,663 $1,959,275 $0 $5,468,938 Total Estimated Costs $10,909,663 $5,604,674 $28,407,244 $45,407,244 Draft Draft Appendix C MuniCap 126 CITY OF ANNA TAX INCREMENT REINVESTMENT ZONE No. ANNA, TX Schedule C: Estimated Bond Debt Service - PID Bonds Total Draft Principal and Prepayment Delinquency Total Bond Year Principal Coupon Interest Interest Reserve Reserve Debt Service 1 $0 7.000% $1,190,000 $1,190,000 $34,000 $51,000 $1,275,000 2 $0 7.000% $1,190,000 $1,190,000 $34,000 $51,000 $1,275,000 3 $194,000 7.000% $1,190,000 $1,384,000 $34,000 $51,000 $1,469,000 4 $208,000 7.000% $1,176,420 $1,384,420 $33,612 $50,418 $1,468,450 5 $224,000 7.000% $1,161,860 $1,385,860 $33,196 $49,794 $1,468,850 6 $241,000 7.000% $1,146,180 $1,387,180 $32,748 $49,122 $1,469,050 7 $259,000 7.000% $1,129,310 $1,388,310 $32,266 $48,399 $1,468,975 8 $278,000 7.000% $1,111,180 $1,389,180 $31,748 $47,622 $1,468,550 9 $299,000 7.000% $1,091,720 $1,390,720 $31,192 $46,788 $1,468,700 10 $322,000 7.000% $1,070,790 $1,392,790 $30,594 $45,891 $1,469,275 11 $346,000 7.000% $1,048,250 $1,394,250 $29,950 $44,925 $1,469,125 12 $372,000 7.000% $1,024,030 $1,396,030 $0 $73,145 $1,469,175 13 $400,000 7.000% $997,990 $1,397,990 $0 $71,285 $1,469,275 14 $430,000 7.000% $969,990 $1,399,990 $0 $69,285 $1,469,275 15 $462,000 7.000% $939,890 $1,401,890 $0 $67,135 $1,469,025 16 $496,000 7.000% $907,550 $1,403,550 $0 $64,825 $1,468,375 17 $534,000 7.000% $872,830 $1,406,830 $0 $62,345 $1,469,175 18 $574,000 7.000% $835,450 $1,409,450 $0 $59,675 $1,469,125 19 $617,000 7.000% $795,270 $1,412,270 $0 $56,805 $1,469,075 20 $663,000 7.000% $752,080 $1,415,080 $0 $53,720 $1,468,800 21 $713,000 7.000% $705,670 $1,418,670 $0 $50,405 $1,469,075 22 $766,000 7.000% $655,760 $1,421,760 $0 $46,840 $1,468,600 23 $824,000 7.000% $602,140 $1,426,140 $0 $43,010 $1,469,150 24 $885,000 7.000% $544,460 $1,429,460 $0 $38,890 $1,468,350 25 $952,000 7.000% $482,510 $1,434,510 $0 $34,465 $1,468,975 26 $1,023,000 7.000% $415,870 $1,438,870 $0 $29,705 $1,468,575 27 $1,100,000 7.000% $344,260 $1,444,260 $0 $24,590 $1,468,850 28 $1,182,000 7.000% $267,260 $1,449,260 $0 $19,090 $1,468,350 29 $1,271,000 7.000% $184,520 $1,455,520 $0 $13,180 $1,468,700 30 $1,365,000 7.000% $95,550 $1,460,550 $0 $6,825 $1,467,375 Total $17,000,000 $24,898,790 $41,898,790 $357,306 $1,421,179 $43,677,275 Draft Breakdown of Estimated Bond Debt Service Payments City Major Improvements Portion 64.17% 35.83% Major Improvement Bonds 1- The estimated principal and interest shares of the TIRZ Major Improvements are calculated as 64.17% based on the total TIRZ Project Costs cap of $7.4mm and and the estimated total costs of $11.531mm for TIRZ and non-TIRZ major improvements. Bond interest is estimated at 7%. The estimated interest amounts also include 0.5% for prepayment and delinquency reserves. 1 -The estimated principal and interest shares of the Non-TIRZ Major Improvements are calculated as 35.83% based on the total TIRZ Project Costs cap of $7.4mm and and the estimated total costs of $11.531mm for TIRZ and non-TIRZ major improvements. Bond interest is estimated at 7%. The estimated interest amounts also include 0.5% for prepayment and delinquency reserves. Draft TIRZ Major Improvements Other Major Improvements Estimated Total TIRZ Admin Combined Year Principal' Interest' Principah Interest Expenses Obligations 1 $0 $818,225 $0 $456,775 $0 $1,275,000 2 $0 $818,225 $0 $456,775 $30,000 $1,305,000 3 $124,499 $818,225 $69,501 $456,775 $30,000 $1,499,000 4 $133,483 $808,887 $74,517 $451,563 $30,000 $1,498,450 5 $143,751 $798,876 $80,249 $445,974 $30,000 $1,498,850 6 $154,661 $788,095 $86,339 $439,955 $30,000 $1,499,050 7 $166,212 $776,495 $92,788 $433,480 $30,000 $1,498,975 8 $178,405 $764,029 $99,595 $426,521 $30,000 $1,498,550 9 $191,882 $750,649 $107,118 $419,051 $30,000 $1,498,700 10 $206,642 $736,258 $115,358 $411,017 $30,000 $1,499,275 11 $222,044 $720,760 $123,956 $402,365 $30,000 $1,499,125 12 $238,729 $704,106 $133,271 $393,069 $30,000 $1,499,175 13 $256,698 $686,202 $143,302 $383,073 $30,000 $1,499,275 14 $275,950 $666,949 $154,050 $372,326 $30,000 $1,499,275 15 $296,486 $646,253 $165,514 $360,772 $30,000 $1,499,025 16 $318,305 $624,017 $177,695 $348,358 $30,000 $1,498,375 17 $342,692 $600,144 $191,308 $335,031 $30,000 $1,499,175 18 $368,362 $574,442 $205,638 $320,683 $30,000 $1,499,125 19 $395,957 $546,815 $221,043 $305,260 $30,000 $1,499,075 20 $425,477 $517,118 $237,523 $288,682 $30,000 $1,498,800 21 $457,564 $485,207 $255,436 $270,868 $30,000 $1,499,075 22 $491,577 $450,890 $274,423 $251,710 $30,000 $1,498,600 23 $528,798 $414,022 $295,202 $231,128 $30,000 $1,499,150 24 $567,944 $374,362 $317,056 $208,988 $30,000 $1,498,350 25 $610,941 $331,766 $341,059 $185,209 $30,000 $1,498,975 26 $656,505 $285,945 $366,495 $159,630 $30,000 $1,498,575 27 $705,919 $236,708 $394,081 $132,142 $30,000 $1,498,850 28 $758,542 $183,764 $423,458 $102,586 $30,000 $1,498,350 29 $815,658 $126,873 $455,342 $70,827 $30,000 $1,498,700 30 $875,982 $65,699 $489,018 $36,676 $30,000 $1,497,375 31 $0 $0 $0 $0 $0 $0 Total $10,909,663 $17,120,005 $6,090,337 $9,557,270 $870,000 $44,547,275 1- The estimated principal and interest shares of the TIRZ Major Improvements are calculated as 64.17% based on the total TIRZ Project Costs cap of $7.4mm and and the estimated total costs of $11.531mm for TIRZ and non-TIRZ major improvements. Bond interest is estimated at 7%. The estimated interest amounts also include 0.5% for prepayment and delinquency reserves. 1 -The estimated principal and interest shares of the Non-TIRZ Major Improvements are calculated as 35.83% based on the total TIRZ Project Costs cap of $7.4mm and and the estimated total costs of $11.531mm for TIRZ and non-TIRZ major improvements. Bond interest is estimated at 7%. The estimated interest amounts also include 0.5% for prepayment and delinquency reserves. Draft Draft Appendix D MuniCap 127 CITY OF ANNA TAX INCREMENT REINVESTMENT ZONE No. ANNA, TX Schedule D: Projected Absorption - All Phases Assessment Year Year TIRZ Fiscal Year Ending 1 -Jan -16 1 30 -Sep -17 1 -Jan -17 2 30 -Sep -18 1 -Jan -18 3 30 -Sep -19 1 -Jan -19 4 30 -Sep -20 1 -Jan -20 5 30 -Sep -21 1 -Jan -21 6 30 -Sep -22 1 -Jan -22 7 30 -Sep -23 1 -Jan -23 8 30 -Sep -24 1 -Jan -24 9 30 -Sep -25 1 -Jan -25 10 30 -Sep -26 1 -Jan -26 11 30 -Sep -27 1 -Jan -27 12 30 -Sep -28 1 -Jan -28 13 30 -Sep -29 1 -Jan -29 14 30 -Sep -30 1 -Jan -30 15 30 -Sep -31 1 -Jan -31 16 30 -Sep -32 1 -Jan -32 17 30 -Sep -33 1 -Jan -33 18 30 -Sep -34 1 -Jan -34 19 30 -Sep -35 1 -Jan -35 20 30 -Sep -36 1 -Jan -36 21 30 -Sep -37 1 -Jan -37 22 30 -Sep -38 1 -Jan -38 23 30 -Sep -39 1 -Jan -39 24 30 -Sep -40 1 -Jan -40 25 30 -Sep -41 1 -Jan -41 26 30 -Sep -42 1 -Jan -42 27 30 -Sep -43 1 -Jan -43 28 30 -Sep -44 1 -Jan -44 29 30 -Sep -45 1 -Jan -45 30 30 -Sep -46 1 -Jan -46 31 30 -Sep -47 1 -Jan -47 32 30 -Sep -48 1 -Jan -48 33 30 -Sep -49 Lot Type 1 (100' Lot) Annual Cumulative 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 25 25 24 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 49 Lot Type 2 (90' Lot) Annual Cumulative 0 0 0 0 1 1 4 5 4 9 4 13 4 17 2 19 11 30 25 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 Lot Type 3 (80' Lot) Annual Cumulative 0 0 0 0 22 22 44 66 37 103 24 127 13 140 24 164 21 185 64 185 29 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 185 Lot Type 4 (70' Lot) Annual Cumulative 0 0 0 0 24 24 48 72 13 85 64 149 64 213 59 272 64 336 29 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 365 Annual 0 0 47 96 54 92 81 85 96 79 24 0 0 0 0 Total Cumulative 0 0 47 143 197 289 370 455 551 630 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 654 Total 49 365 654 Note: The projected absorption schedule is provided by the developer. MuniCap, Inc. Draft Draft Draft Appendix E MuniCap 128 CITY OF ANNA TAX INCREMENT REINVESTMENT ZONE No. _ ANNA, TX Schedule E: Projected Assessed Value - All Phases MuniCap, Inc. I The estimated annual growth rate is calculated as the ten-year average annual growth rate of average home values in the city. 2 Estimated value per unit based on information provided by the developer. 3 The projections assume that the assessed value is approximately 94 percent of the estimated sales price as reported by the developer with 1.89% annual inflation factor. The 6% reduction is based on the ten-year average total exemption to taxable value ratios. Draft Draft Total TIRZ Fiscal 1.89% Lot Type 1 (100' Lot) Lot Type 2 (90' Lot) Lot Type 3 (80' Lot) Lot Type 4 (70' Lot) Estimated Estimated Estimated Assessment Year Inflation Value Per Market Value Per Market Value Per Market Value Per Market Market Assessment Assessed Year Year Ending Factor' Units Unit` Value Units Unit` Value Units Unit' Value Units Unit Value Value Rate' Value 1 -Jan -16 I 30 -Sep -17 100.0% 0 $475,000 $0 0 $427,500 $0 0 $380,000 $0 0 $332,500 $0 $0 94% $0 I -Jan -17 2 30 -Sep -18 100.0% 0 $475,000 $0 0 $427,500 $0 0 $380,000 $0 0 $332,500 $0 $0 94% $0 1 -Jan -18 3 30 -Sep -19 100.0% 0 $483,994 $0 1 $435,595 $435,595 22 $387,196 $8,518,303 24 $338,796 $8,131,107 $17,085,005 94% $15,998358 IJan- 19 4 30 -Sep -20 101.9% 0 $493,159 $0 5 $443,843 $2,219;217 66 $394,527 $26,038,810 72 $345,212 $24,855,228 $53,113,255 94% $49,735,126 1 -Ian -20 5 30 -Sep -21 103.8% 0 $502,498 $0 9 $452,248 $4,070,231 103 $401,998 $41,405,805 85 $351,748 $29,898,609 $75,374,645 94% $70,580,639 I -Jan -21 6 30 -Sep -22 105.8% 0 $512,013 $0 13 $460,812 $5,990,550 127 $409,610 $52,020,502 149 $358,409 $53,402,936 $111,413,987 94% $104,327,793 1 -Jan -22 7 30 -Sep -23 107.8% 0 $521,708 $0 17 $469,537 $7,982,135 140 $417,367 $58,431,314 213 $365,196 $77,786,687 $144,200,136 94% $135,028,664 1 -Jan -23 8 30 -Sep -24 109.8% 0 $531,587 $0 19 $478,428 $9,090,139 164 $425,270 $69,744,228 272 $372,111 $101,214,184 $180,048,552 94% $168,597,035 1 -Jan -24 9 30 -Sep -25 111.9% 0 $541,653 $0 30 $487,488 $14,624,634 185 $433,322 $80,164,660 336 $379,157 $127,396,811 $222,186,105 94% $208,054,540 I -Jan -25 10 30 -Sep -26 114.0% 25 $551,910 $13,797,743 55 $496,719 $27,319,531 185 $441,528 $81,682,639 365 $386,337 $141,012,934 $263,812,847 94% $247,033,722 1 -Jan -26 11 30 -Sep -27 116.2% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 I -Jan -27 12 30 -Sep -28 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -28 13 30 -Sep -29 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -29 14 30 -Sep -30 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -30 15 30 -Sep -31 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -31 16 30 -Sep -32 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -32 17 30 -Sep -33 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 I -Jan -33 18 30 -Sep -34 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -34 19 30 -Sep -35 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 I -Jan -35 20 30 -Sep -36 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -36 21 30 -Sep -37 118,4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 I -Jan -37 22 30 -Sep -38 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -38 23 30 -Sep -39 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -39 24 30 -Sep -40 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -40 25 30 -Sep -41 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -41 26 30 -Sep -42 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -42 27 30 -Sep -43 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 I -Jan -43 28 30 -Sep -44 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652. $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -44 29 30 -Sep -45 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 1 -Jan -45 30 30 -Sep -46 118.4% 49 $562,361 $27,555,667 55 $506,124 $27,836,847 185 $449,888 $83,229,362 365 $393,652 $143,683,121 $282,304,997 94% $264,349,727 MuniCap, Inc. I The estimated annual growth rate is calculated as the ten-year average annual growth rate of average home values in the city. 2 Estimated value per unit based on information provided by the developer. 3 The projections assume that the assessed value is approximately 94 percent of the estimated sales price as reported by the developer with 1.89% annual inflation factor. The 6% reduction is based on the ten-year average total exemption to taxable value ratios. Draft Draft Draft Appendix F MuniCap 129 CITY OF ANNA TAX INCREMENT REINVESTMENT ZONE No. _ ANNA, TX Schedule F: Projected Incremental Real Property Tax - All Phases $40,169,779 $39,730,436 $19,865,218 $27,263,218 $8,234,752 t The estimated annual growth rate is calculated as a 10 average annual growth rate of average home values in the city. 2 The projections assume that 50 percent of the incremental real property tax will be made availabel for the partial payment of debt service on the PID Bonds. ' The maximum amount of TIRZ related obligations is set not to exceed $21,048,883 per the Subdivision Improvement Agreement. M-iCap. /»c. Draft Draft Estimated TIRZ Fiscal 1.89% Estimated Base Anna Estimated Base Estimated Incremental Real Estimated Estimated Assessment Year Inflation Assessed Year Tax Real Propert Year Incremental Real TIRZ Property Tax TIRZ related Developer Funded Year Year Ending Factor' Value Value Rate Tax Tax Property Tax Percentage2 Available Obligation93 Obligations Amount 1 -Jan -16 1 30 -Sep -17 100.0% $0 ($2,455,530) $0.6390 $0 ($15,691) $0 50% $0 $0 $0 1 -Jan -17 2 30 -Sep -18 100.0% $0 ($2,455,530) $0.6390 $0 ($15,691) $0 50% $0 $30,000 $30,000 1 -Jan -18 3 30 -Sep -19 101.9% $15,998,358 ($2,455,530) $0.6390 $102,230 ($15,691) $86,539 50% $43,269 $972,723 $972,723 1 -Jan -19 4 30 -Sep -20 103.8% $49,735,126 ($2,455,530) $0.6390 $317,807 ($15,691) $302,117 50% $151,058 $972,370 $929,101 1 -Jan -20 5 30 -Sep -21 105.8% $70,580,639 ($2,455,530) $0.6390 $451,010 ($15,691) $435,319 50% $217,660 $972,627 $821,569 1 -Jan -21 6 30 -Sep -22 107.8% $104,327,793 ($2,455,530) $0.6390 $666,655 ($15,691) $650,964 50% $325,482 $972,755 $755,096 1 -Jan -22 7 30 -Sep -23 109.8% $135,028,664 ($2,455,530) $0.6390 $862,833 ($15,691) $847,142 50% $423,571 $972,707 $647,225 1 -Jan -23 8 30 -Sep -24 111.9% $168,597,035 ($2,455,530) $0.6390 $1,077,335 ($15,691) $1,061,644 50% $530,822 $972,434 $548,863 1 -Jan -24 9 30 -Sep -25 114.0% $208,054,540 ($2,455,530) $0.6390 $1,329,469 ($15,691) $1,313,778 50% $656,889 $972,531 $441,709 1 -Jan -25 10 30 -Sep -26 116.2% $247,033,722 ($2,455,530) $0.6390 $1,578,545 ($15,691) $1,562,855 50% $781,427 $972,900 $316,011 1 -Jan -26 11 30 -Sep -27 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,803 $191,376 1 -Jan -27 12 30 -Sep -28 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,836 $136,084 1 -Jan -28 13 30 -Sep -29 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,900 $136,148 1 -Jan -29 14 30 -Sep -30 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,900 $136,148 1 -Jan -30 15 30 -Sep -31 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,739 $135,987 1 -Jan -31 16 30 -Sep -32 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,322 $135,570 1 -Jan -32 17 30 -Sep -33 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,836 $136,084 1 -Jan -33 18 30 -Sep -34 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,803 $136,051 1 -Jan -34 19 30 -Sep -35 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,771 $136,019 1 -Jan -35 20 30 -Sep -36 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,595 $135,843 1 -Jan -36 21 30 -Sep -37 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,771 $136,019 1 -Jan -37 22 30 -Sep -38 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,467 $135,715 1 -Jan -38 23 30 -Sep -39 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,819 $136,068 1 -Jan -39 24 30 -Sep -40 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,306 $135,554 1 -Jan -40 25 30 -Sep -41 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,707 $135,955 1 -Jan -41 26 30 -Sep -42 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,450 $135,699 1 -Jan -42 27 30 -Sep -43 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,627 $135,875 1 -Jan -43 28 30 -Sep -44 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,306 $135,554 1 -Jan -44 29 30 -Sep -45 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $972,531 $135,779 1 -Jan -45 30 30 -Sep -46 118.4% $264,349,727 ($2,455,530) $0.6390 $1,689,195 ($15,691) $1,673,504 50% $836,752 $971,680 $134,928 $40,169,779 $39,730,436 $19,865,218 $27,263,218 $8,234,752 t The estimated annual growth rate is calculated as a 10 average annual growth rate of average home values in the city. 2 The projections assume that 50 percent of the incremental real property tax will be made availabel for the partial payment of debt service on the PID Bonds. ' The maximum amount of TIRZ related obligations is set not to exceed $21,048,883 per the Subdivision Improvement Agreement. M-iCap. /»c. Draft Draft Draft Appendix G iMuniCap 1.30 CITY OF ANNA, TEXAS (Property rezoned under this ordinance is generally located on the north side of FM 455 and west of U.S. 75) ORDINANCE NO. AN ORDINANCE OF THE CITY OF ANNA, TEXAS AMENDING THE CITY'S COMPREHENSIVE PLAN, ZONING MAP, AND ZONING ORDINANCE AND CHANGING THE ZONING OF CERTAIN PROPERTY AS DESCRIBED HEREIN; PROVIDING FOR SAVINGS, REPEALING AND SEVERABILITY CLAUSES; PROVIDING FOR AN EFFECTIVE DATE; PROVIDING FOR A PENALTY CLAUSE NOT TO EXCEED $2,000 OR THE HIGHEST PENALTY AMOUNT ALLOWED BY LAW, WHICHEVER IS LESS; AND, PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF. WHEREAS, the City of Anna, Texas ("City") has previously adopted ordinances, rules and regulations governing the zoning in the City; and WHEREAS, the City has received a requested zoning change on Property described in Exhibit A and Exhibit B ("Property") attached hereto and incorporated herein for all purposes as if set forth in full; and WHEREAS, said Property generally located on the north side of FM 455 and west of U.S. 75 being rezoned from "PD - Single Family Residential" zoning district to "PD- Single Family Residential (PD) zoning; and WHEREAS, the Planning and Zoning Commission of the City and the City Council of the City of Anna ("City Council") have given the requisite notices by publication and otherwise and have held the public hearings as required by law and afforded a full and fair hearing to all property owners and generally to all persons interested in and situated in the affected area and in the vicinity thereof, the City Council has concluded that the Zoning Ordinance of the City should be amended as set forth below. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS THAT: Section 1. Recitals Incorporated The above recitals are incorporated herein by reference for all purposes. Section 2. Zoning Change The Comprehensive Plan of the City and City of Anna Ordinance No. 116-2003 as amended and codified as Part III -C of The Anna City Code of Ordinances are hereby amended by changing the zoning of the Property described in Exhibit A from PD - Single Family Residential to PD — Single Family Residential zoning. PURPOSE AND INTENT A. Purpose and Intent: This zoning submittal addresses the disposition of approximately 368 total acres of land within the City of Anna more fully described on the legal description attached as Exhibit A (the "Property") and depicted on Exhibit B. The uses proposed for the Property follow the intent of the City of Anna Comprehensive Plan dated March 2010. It is the intent of the Planned Development (PD) to offer greater flexibility for residential development. The purpose of the district is to create a master planned community featuring a mixture of housing types in a manner that will encourage sustainable neighborhoods and attract investment to the area. The purpose of this district is: a. To provide development and land use flexibility within the framework of a Planned Development zoning district. 2. The intent of this district is: a. To design streets and buildings which will contribute to creating safe neighborhoods. b. To provide an attractive environment for pedestrians which includes such things as buildings framing public space, street trees, lighting and canopies that will attract pedestrians. C. To contribute to the definition and use of public parks, ball fields and walking trails. d. Integrated parks and open space to preserve areas designated within the 100 -year floodplain. This will protect existing stream corridors and other physical assets as amenities. The Villages of Hurricane Creek PD is intended to provide the community with a mixture of housing types in a pattern and amount that will encourage sustainable neighborhoods and development. 4. The Villages of Hurricane Creek Concept Plan delineates the boundaries of the respective neighborhood areas (Exhibit B). The Development Standards shall apply to the entire Villages of Hurricane Creek District unless indicated otherwise. Housing mix, street types, building types and frontage standards for any particular area shall be controlled by the neighborhood areas delineated on the plan. B. Applicability: This Ordinance shall apply to all development within the PD boundaries. Unless otherwise stated herein, all ordinances of the City shall apply to The Villages of Hurricane Creek. II. DEFINITIONS Accessory Building or Use: (a) is subordinate to and serves a principal Building or principal Use; (b) is subordinate in area, extent, or purpose to the principal Building or principal Use served and is not physically connected to the principal Building; (c) contributes to the comfort, convenience and necessity of occupants of the principal Building or principal Use served; and (d) 2 is located on the same Building Lot as the principal Use served. If connected to the principal Building, a structure becomes part of the principal Building. Block: Property abutting on one side of the Street and lying between the nearest intersecting or intercepting Streets or nearest intercepting Street and railroad right-of-way, waterway, or other barrier to or gap in the continuity of development along such Street. Building: Any structure built for the support, shelter, or enclosure of persons, chattels, or movable property of any kind. When such structure is divided into separate parts by one or more unpierced walls extending from the ground up, each part is deemed a separate Building, except as regards minimum side yards. Building Line: A line parallel or approximately parallel to the Street line at a specific distance there from marking the minimum distance from the Street line that a Building may be erected. Court: An open, unoccupied space on the same Lot with a Building and bounded on two sides by such Building, or the Open Space provided for access to a dwelling group. District: A portion of the territory of the city within which certain uniform regulations and requirements or various combinations thereof apply under the provisions of this Part of the Code. The term "residential District" means any SF -E, SF -1, SF -84, SF -72, SF -60, SF -2, SF -Z, SF- TH, MH, or MF District; the term "commercial District" means any C-1, NC, C-2, C-3 or 0-1 District. Dwelling Unit: A room or a group of rooms including cooking accommodations, occupied by one Family, and in which not more than two persons, other than members of the Family, are lodged or boarded for compensation at any one time. Dwelling Unit, Single -Family: Detached means located on a Lot or separate Building tract and having no physical connection to a Building on any other Lot. Flood Plain: The land adjoining the channel of a river, stream, or watercourse that has been or may be covered by floodwater. Any land covered by the water of a 100 year frequency storm is considered in the Flood Plain and must comply with the engineering criteria found in the subdivision regulations and other relevant regulations of the City. Frontage: All the property abutting on one side of a Street between intersecting or intercepting Streets, or between a Street and a right-of-way, waterway, end of a dead-end Street, or village boundary measured along the Street line. An intercepting Street shall determine only the boundary of the Frontage on the side of the Street which it shall determine only the boundary of the Frontage on the side of the Street which it intercepts. Where a Lot abuts more than one Street, the planning and zoning commission shall determine the Frontage for purposes of the Part of the Code. Land Use Plan: The long-range plan for the desirable use of land in the City of Anna as officially adopted and as amended from time to time by the City Council, the purpose of such plan being, among other things, to serve as a guide in the zoning and progressive changes in the zoning of land to meet the changing needs, in the subdivision and Use of undeveloped land, and in the acquisition of rights-of-way or sites for public purposes such as Streets, parks, schools and public Buildings. Lot: The entire parcel of land occupied or to be occupied by a main Building and its Accessory Buildings, or by a group such as a dwelling group or automobile Court and their Accessory Buildings, including the yards and Open Spaces required therefore by this title and other applicable law. Lot, Corner: A Lot abutting on two intercepting or intersecting Streets where the interior angle of intersection or interception does not exceed 135°. Lot Coverage: The percentage of the total area of a Lot occupied by the base (first Story or floor) of Buildings located on the Lot. Lot, Interior: A Lot other than a corner Lot. Lot, Lines: The property lines bounding the Lot as defined herein. Lot, Through: A Lot having its front and rear on different Streets, or having its front or rear line on a Street and the other line on a river, lake, creek or other permanent body of water. Lot Depth: The average depth from the front line of the Lot to the rear line of the Lot. Lot Width: The width measured at a distance back from the front line equal to the minimum depth required for a Front Yard. Lot of Record: A Lot, which is part of a subdivision, the plat of which has been recorded in the office of the County Clerk of Collin County, or a parcel of land, the deed for which was recorded in the Office of the County Clerk, Collin County, prior to January 1, 1986. Main Building: A Building in which is conducted principal Use of the Lot on which it is situated. Open Space: That part of any Lot or tract that is used for recreational purposes, both passive and active, but not including areas used for parking or maneuvering of automobiles, or drives or approaches to and from parking areas, Floodplains, or 100% of any standing surface water, may be considered as Open Space, provided such Open Space is contiguous and part of the platted Lot and is maintained and utilized in the same manner and to the same degree as all other Open Space areas as is designated on the site plan as filed with the building permit application. Planned Development: Land under unified control, including developed as a whole; in a single development operation or a definitely programmed series of development operations, including all lands and Buildings; for principal and accessory structures and uses substantially related to the character of the District; according to comprehensive and detailed plans which include not only Streets, utilities, and Lots or Buildings sites, but also site plans, floor plans, and elevations of all Buildings as intended be located, constructed, used and related to each other, and detailed plans for other uses and improvements on the land as related to the Buildings; and with a program for provision, operation and maintenance of such areas, improvements, facilities, and 11 services as will be for common Use by some or all of the occupants of the District, but will not be provided, operated, or maintained at general public expense. Planned Development is both a concept and a zoning classification which may include, in addition to planned unit development, commercial, shopping center, and industrial uses or combination thereof, which may be intended to serve areas within the District and areas without the District. Rear Yard: The required Rear Yard is an Open Space unoccupied and unobstructed except for Accessory Uses extending across the rear of a Lot from one side Lot line to the other side Lot line, the depth of which is dependent upon the zoning District in which the Lot is located. Screening Element (Device): A barrier of permanent material of sufficient heights and density so that the objects being screened are not visible from any point on the Lot line when viewed from any height between ground level and seven feet above ground level and shall mean any of the following: (a) Any solid material constructed of brick, Masonry, or of a concrete or metal frame, or wood or base which supports a permanent type material, the vertical surface of which is not more than 30% open; (b) Any dense evergreen hedge or plant material suitable for providing a visual barrier, for which such material shall be maintained in a healthy growing condition; or (c) Landscaped earth berms may, when appropriate in scale, be considered and used as a Screening Element in lieu of a fence, wall, hedge, or other dense planting material. Street: A public or private thoroughfare which affords the principal means of access to abutting property. The Villages of Hurricane Creek Concept Plan (Exhibit B): The graphic plan for The Villages of Hurricane Creek that establishes and delineates the respective PD sub -districts such as the Village Center and other Neighborhoods. Thoroughfare: An officially designated federal or state numbered highway or county or other road or Street designated as a primary thoroughfare on the official Thoroughfare Plan of the City of Anna. Thoroughfare Plan: The official Thoroughfare Plan of the City of Anna adopted by the City Council establishing the location and official right-of-way width of principal highways and Streets in the city, together with all amendments thereto subsequently adopted. Use: The purpose for which land or a Building or structure thereon is designed, arranged intended or maintained or for which it is or may be used or occupied. This definition does not alter or affect the definition of Nonconforming Use as set forth in Section 39.01 of the Part. (Ord. No. 457-2009, adopted 08/25/09) Use, Accessory: A subordinate Use on the same Lot with the principal Use and incidental and accessory thereto. Yard: An Open Space, other than a Court, on the same Lot with a Building. W1 Yard, Front: A yard extending across the full width of a Lot and having a depth equal to the shortest distance between the front line of the Lot and the nearest portion of the main Buildings including an enclosed or covered porch, provided that the Front Yard depth shall be measured from the future Street line for a Street on which a Lot fronts, when such line is shown on the official map or is otherwise established. Yard, Rear: A yard extending across the full width of a Lot and having a depth equal to the shortest distance between the rear line of the Lot and the main Building. Yard, Side: A yard between the side line of the Lot and the main Building extending from the Front Yard to the Rear Yard and leaving a width equal to the shortest distance between said side line and the main Building. Zoning Map: The official Zoning Map of the City of Anna together with all amendments subsequently adopted. *Rules for Words and Phrases: For the purposes of the City of Anna Zoning Ordinance, words used in the present tense include the future tense; words in the singular number include the plural number, and words in the plural number include the singular number; the word "shall" is mandatory, not directory; the word "may" is permissive; the word "person" includes a firm, association, organization, partnership, trust, foundation, company, or corporation as well as an individual; the word "used" includes designed and intended or arranged to be used; the word "Building" includes the word "structure"; the word "Lot" includes "Building Lot" or parcel. Wherever the City of Anna Zoning Ordinance imposes a greater restriction than imposed by other ordinances, laws, or regulations, the provisions of the City of Anna Zoning Ordinance shall govern. III. LOT TYPE REGULATIONS The Villages of Hurricane Creek will include a specific lot type in order to achieve the goals established for the district. The lot type and requirement shall be as follows: A. Lot Type SF -84 (70' x 120'): 1. Purpose: The SF -84 Single Family Residential District is designed to accommodate Single Family Residential development on relatively ample Lots. The District can be appropriately located in proximity to agricultural and Single Family Residential Uses. 2. Permitted Uses: A Building or premise in a SF -84 District shall be used only for the purposes as listed in Appendix 2 of the City of Anna Zoning Ordinance. The Permitted Uses are as follows: a. Single family dwelling, detached; b. Community center (public and private); 0 c. Park, playground, or recreational center (public and private); d. School, public (primary and/or secondary); and e. Swimming pool (private) 3. Specific Use Permit: The following specific uses shall be permitted in a SF -84 District, when granted in accordance with Section 37 of the City of Anna Zoning Ordinance: a. Public, parochial, and private schools and colleges offering courses of general instruction and including convents, monasteries, dormitories, and other related living structures when located on the same site as the school or college. b. Churches, synagogues, chapels, and similar places of religions worship and instruction of a quiet nature when located in a substantial structure. c. Utility substations necessary to the functioning of the utility, but not including general business offices, maintenance facilities and other general system facilities, when located according to the yard space rules set forth in this part for dwellings and have a landscaped or masonry barrier on all sides. Building shall conform to all space limits of this zone and shall be of such exterior designs to harmonize with nearby properties. d. Public and quasi -public buildings for cultural use. e. Country clubs as defined herein. f. Uses as listed in Appendix 2 of the City of Anna Zoning Ordinance. 4. Plan Requirements: Except as otherwise specifically authorized in the City of Anna Subdivision Regulations, no building permit or Floodplain Development Permit shall be issued by the City for any parcel of land until a Final Plat — or Development Plat, as applicable —of the land has been recorded. 5. Height Regulations: No building shall exceed thirty-five feet (35'). 6. Area Regulations: The following minimum standards shall be required as measured from property lines: Lot Size: 8,400 square feet 7 B. Lot Coverage: The combined area covered by all main buildings and accessory structures shall not exceed fifty percent (50%) of the total lot area. Building Size: The minimum square footage of a dwelling unit, shall be two thousand (2,000) sf. Front Yard: 20 feet minimum Rear Yard: 15 feet minimum (the required Rear Yard shall be open and unobstructed to the sky from a point 30 inches above the average elevation of the Graded Rear Yard, except for Accessory Buildings as permitted herein. Eaves, covered porches, and roof extensions without structural support in the Rear Yard may extend into the rear yard a distance not to exceed four feet. Balconies shall not project into the required Rear Yard.) Side Yard, Interior: 5 feet minimum Side Yard, Corner Lot, Street Side: 15 feet minimum (45 feet where adjacent to single Family or duplex residential District) Lot Width: 70 feet minimum; (measured at the front building line) Lot Depth: 120 feet minimum Masonry (Brick or rock veneer): 80% 7. Parking Regulations: Two enclosed spaces behind the Front Yard line for single- family Dwelling Units and HUD Code manufactured homes. Other off -Street parking regulations are set forth in Section 38 of the City of Anna Zoning Ordinance. 8. Signs: Signs in this District shall comply with the requirements of the City of Anna Sign Ordinance (as amended). Lot Type SF -84 (80'x 120'): 1. Purpose: The SF -84 Single Family Residential District is designed to accommodate Single Family Residential development on relatively ample Lots. The District can be appropriately located in proximity to agricultural and Single Family Residential Uses. 2. Permitted Uses: A Building or premise in a SF -84 District shall be used only for the purposes as listed in Appendix 2 of the City of Anna Zoning Ordinance. The Permitted Uses are as follows: a. Single family dwelling, detached; b. Community center (public and private); c. Park, playground, or recreational center (public and private); d. School, public (primary and/or secondary); and e. Swimming pool (private) 3. Specific Use Permit: The following specific uses shall be permitted in a SF -84 District, when granted in accordance with Section 37 of the City of Anna Zoning Ordinance: a. Public, parochial, and private schools and colleges offering courses of general instruction and including convents, monasteries, dormitories, and other related living structures when located on the same site as the school or college. b. Churches, synagogues, chapels, and similar places of religions worship and instruction of a quiet nature when located in a substantial structure. c. Utility substations necessary to the functioning of the utility, but not including general business offices, maintenance facilities and other general system facilities, when located according to the yard space rules set forth in this part for dwellings and have a landscaped or masonry barrier on all sides. Building shall conform to all space limits of this zone and shall be of such exterior designs to harmonize with nearby properties. d. Public and quasi -public buildings for cultural use. e. Country clubs as defined herein. f. Uses as listed in Appendix 2 of the City of Anna Zoning Ordinance. 4. Plan Requirements: Except as otherwise specifically authorized in the City of Anna Subdivision Regulations, no building permit or Floodplain Development Permit shall be issued by the City for any parcel of land until a Final Plat — or Development Plat, as applicable —of the land has been recorded. 5. Height Regulations: No building shall exceed thirty-five feet (35'). E 6. Area Regulations: The following minimum standards shall be required as measured from property lines: Lot Size: 9,600 square feet Lot Coverage: The combined area covered by all main buildings and accessory structures shall not exceed fifty percent (50%) of the total lot area. Building Size: The minimum square footage of a dwelling unit, shall be two thousand (2,000) sf. Front Yard: 20 feet minimum Rear Yard: 15 feet minimum (the required Rear Yard shall be open and unobstructed to the sky from a point 30 inches above the average elevation of the Graded Rear Yard, except for Accessory Buildings as permitted herein. Eaves, covered porches, and roof extensions without structural support in the Rear Yard may extend into the rear yard a distance not to exceed four feet. Balconies shall not project into the required Rear Yard.) Side Yard, Interior: 5 feet minimum Side Yard, Corner Lot, Street Side: 15 feet minimum (45 feet where adjacent to single Family or duplex residential District) Lot Width: 80 feet minimum; (measured at the front building line) Lot Depth: 120 feet minimum Masonry (Brick or rock veneer): 80% 7. Parking Regulations: Two enclosed spaces behind the Front Yard line for single- family Dwelling Units and HUD Code manufactured homes. Other off -Street parking regulations are set forth in Section 38 of the City of Anna Zoning Ordinance. 8. Signs: Signs in this District shall comply with the requirements of the City of Anna Sign Ordinance (as amended). 10 C. Lot Type SF -84 (90' x 120'): 1. Purpose: The SF -84 Single Family Residential District is designed to accommodate Single Family Residential development on relatively ample Lots. The District can be appropriately located in proximity to agricultural and Single Family Residential Uses. 2. Permitted Uses: A Building or premise in a SF -84 District shall be used only for the purposes as listed in Appendix 2 of the City of Anna Zoning Ordinance. The Permitted Uses are as follows: a. Single family dwelling, detached; b. Community center (public and private); c. Park, playground, or recreational center (public and private); d. School, public (primary and/or secondary); and e. Swimming pool (private) 3. Specific Use Permit: The following specific uses shall be permitted in a SF -84 District, when granted in accordance with Section 37 of the City of Anna Zoning Ordinance: a. Public, parochial, and private schools and colleges offering courses of general instruction and including convents, monasteries, dormitories, and other related living structures when located on the same site as the school or college. b. Churches, synagogues, chapels, and similar places of religions worship and instruction of a quiet nature when located in a substantial structure. c. Utility substations necessary to the functioning of the utility, but not including general business offices, maintenance facilities and other general system facilities, when located according to the yard space rules set forth in this part for dwellings and have a landscaped or masonry barrier on all sides. Building shall conform to all space limits of this zone and shall be of such exterior designs to harmonize with nearby properties. d. Public and quasi -public buildings for cultural use. e. Country clubs as defined herein. f. Uses as listed in Appendix 2 of the City of Anna Zoning Ordinance. 11 4. Plan Requirements: Except as otherwise specifically authorized in the City of Anna Subdivision Regulations, no building permit or Floodplain Development Permit shall be issued by the City for any parcel of land until a Final Plat — or Development Plat, as applicable —of the land has been recorded. 5 7 Height Regulations: No building shall exceed thirty-five feet (35'). Area Regulations: The following minimum standards shall be required as measured from property lines: Lot Size: 10,800 square feet Lot Coverage: The combined area covered by all main buildings and accessory structures shall not exceed fifty percent (50%) of the total lot area. Building Size: The minimum square footage of a dwelling unit, shall be two thousand (2,000) sf. Front Yard: 20 feet minimum Rear Yard: 15 feet minimum (the required Rear Yard shall be open and unobstructed to the sky from a point 30 inches above the average elevation of the Graded Rear Yard, except for Accessory Buildings as permitted herein. Eaves, covered porches, and roof extensions without structural support in the Rear Yard may extend into the rear yard a distance not to exceed four feet. Balconies shall not project into the required Rear Yard.) Side Yard, Interior: 5 feet minimum Side Yard, Corner Lot, Street Side: 15 feet minimum (45 feet where adjacent to single Family or duplex residential District) Lot Width: 90 feet minimum; (measured at the front building line) Lot Depth: 120 feet minimum Masonry (Brick or rock veneer): 80% Parking Regulations: Two enclosed spaces behind the Front Yard line for single- family Dwelling Units and HUD Code manufactured homes. Other off -Street 12 parking regulations are set forth in Section 38 of the City of Anna Zoning Ordinance. 8. Signs: Signs in this District shall comply with the requirements of the City of Anna Sign Ordinance (as amended). D. Lot Type SF -84 (100' x 150'): 1. Purpose: The SF -84 Single Family Residential District is designed to accommodate Single Family Residential development on relatively ample Lots. The District can be appropriately located in proximity to agricultural and Single Family Residential Uses. 2. Permitted Uses: A Building or premise in a SF -84 District shall be used only for the purposes as listed in Appendix 2 of the City of Anna Zoning Ordinance. The Permitted Uses are as follows: a. Single family dwelling, detached; b. Community center (public and private); c. Park, playground, or recreational center (public and private); d. School, public (primary and/or secondary); and e. Swimming pool (private) 3. Specific Use Permit: The following specific uses shall be permitted in a SF -84 District, when granted in accordance with Section 37 of the City of Anna Zoning Ordinance: a. Public, parochial, and private schools and colleges offering courses of general instruction and including convents, monasteries, dormitories, and other related living structures when located on the same site as the school or college. b. Churches, synagogues, chapels, and similar places of religions worship and instruction of a quiet nature when located in a substantial structure. c. Utility substations necessary to the functioning of the utility, but not including general business offices, maintenance facilities and other general system facilities, when located according to the yard space rules set forth in this part for dwellings and have a landscaped or masonry barrier on all sides. Building shall conform to all space limits of this zone and shall be of such exterior designs to harmonize with nearby properties. 13 d. Public and quasi -public buildings for cultural use. e. Country clubs as defined herein. f. Uses as listed in Appendix 2 of the City of Anna Zoning Ordinance. 4. Plan Requirements: Except as otherwise specifically authorized in the City of Anna Subdivision Regulations, no building permit or Floodplain Development Permit shall be issued by the City for any parcel of land until a Final Plat — or Development Plat, as applicable — of the land has been recorded. 5. Height Regulations: No building shall exceed thirty-five feet (35'). 6. Area Regulations: The following minimum standards shall be required as measured from property lines: Lot Size: 15,000 square feet Lot Coverage: The combined area covered by all main buildings and accessory structures shall not exceed fifty percent (50%) of the total lot area. Building Size: The minimum square footage of a dwelling unit, shall be two thousand (2,000) sf. Front Yard: 20 feet minimum Rear Yard: 15 feet minimum (the required Rear Yard shall be open and unobstructed to the sky from a point 30 inches above the average elevation of the Graded Rear Yard, except for Accessory Buildings as permitted herein. Eaves, covered porches, and roof extensions without structural support in the Rear Yard may extend into the rear yard a distance not to exceed four feet. Balconies shall not project into the required Rear Yard.) Side Yard, Interior: 5 feet minimum Side Yard, Corner Lot, Street Side: 15 feet minimum (45 feet where adjacent to single Family or duplex residential District) Lot Width: 100 feet minimum; (measured at the front building line) 14 Lot Depth: 150 feet minimum Masonry (Brick or rock veneer): 80% 7. Parking Regulations: Two enclosed spaces behind the Front Yard line for single- family Dwelling Units and HUD Code manufactured homes. Other off -Street parking regulations are set forth in Section 38 of the City of Anna Zoning Ordinance. 8. Suns: Signs in this District shall comply with the requirements of the City of Anna Sign Ordinance (as amended). TABLE NO. 3-1 Land Use Summary LAND USE SUMMARY USE ACREAGE +/- SF LOTS SF DENSITY (UNITS/ACRE) PERCENTAGE SINGLE FAMILY RESIDENTIAL'PD-XX' - 50% MAXIMUM LOT COVERAGE 70'x 120' LOTS 84.07 365 4.34 51.4% 80'x 120' LOTS 45.32 185 4.08 27.7% 90' x 120' LOTS 14.61 55 3.76 8.9% 100' x 150' LOTS 19.70 49 2.49 12.0% TOTAL 163.7 654 4.00 44.5% OPEN SPACE 148.7 40.4% FIRE STATION 2.5 0.7% AMENITY CENTER 2.0 0.5% ROW DEDICATION 51.3 13.9% TOTAL 368.2 654 1.76 GROSS 100.0% IV. DEVELOPMENT AND DESIGN STANDARDS A. Accessory Buildings: All development within The Villages of Hurricane Creek Planned Development District shall comply with Section 35 of the City of Anna Zoning Ordinance in effect at the time of City Council approval of this ordinance. Nothing in this ordinance shall be construed as preventing any Architectural Control Committee with jurisdiction over any neighborhood from further restricting permission, location, and type of any accessory structure. 15 B. Screening and Fences: All development within The Villages of Hurricane Creek Planned Development District shall comply with Section 40 of the City of Anna Zoning Ordinance in effect at the time of City Council approval of this ordinance C. Landscape Standards: All development within The Villages of Hurricane Creek Planned Development District shall comply with the City of Anna Code of Ordinance Part I11 -E (Landscape Regulations) in effect at the time of City Council approval of this ordinance. 1. Tree Requirements: For all single-family and duplex parcels, builders shall be required to plant two large trees (minimum of three-inch caliper and seven feet high at time of planting) per lot prior to obtaining a certificate of occupancy. At least one of the trees shall be located in the front yard. Existing quality trees of at least three- inch caliper size located on the lot shall count to meet this standard if appropriate tree protection measures have been followed. (Ord. No. 56-2003, adopted 2/11/2003) Requirements for single family residential and duplex lots three-inch caliper trees selected from the Large Tree list in the City of Anna Landscape Regulations shall be planted on all single family residential, duplex, and town home lots. At least one of the trees must be placed in the front yard of the lot. Single Family Residential (SF -84) requires 3 trees. The following are approved large trees: Caddo Maple Pecan Shagbark Hickory DeodarCedar Texas Persimmon Black Walnut Eastern Black Walnut Red Cedar Eastern Red Cedar Sweetgum Southern Magnolia Chinese Pistachio Texas Pistache Bur Oak Chinquapin Oak Shumard Oak Texas Red Oak Live Oak Western Soapberry Bald Cypress Winged Elm American Elm Cedar Elm Chinese Elm Lace Bark Elm Siberian Elm 16 D. Off -Street Parking Requirements: All development within The Villages of Hurricane Creek Planned Development District shall comply with Section 38 of the City of Anna Zoning Ordinance. E. Residential Architectural Standards: 1) House repetition. a. Within residential developments, single family homes with substantially identical exterior elevations can only repeat every four (4) lots when fronting the same right-of-way including both sides of the street. b. Homes side by side or across the street within one house (directly across the street or "caddy corner" across the street) shall not have substantially identical exterior elevations. 2) Building Articulation. At least four facade articulation techniques are required on each single family home to add architectural variety and interest to a building. The following features shall be acceptable techniques of exterior articulation. a. A base course or plinth course; banding, moldings, or stringcourses; quoins; oriels; cornices; arches; balconies; brackets; shutters; keystones; dormers; louvers as part of the exterior wall construction. (Quoins and banding shall wrap around the corners of the structure for at least two feet. b. Horizontal banding continuing the length of the wall that faces a street, or other similar highly visible areas. c. The use of both stone and brick on the front elevations with a minimum of ten percent coverage of one of the elements. d. Front porch of at least 50 square feet. e. The installation of at least two (2) coach lights. f. Other techniques for Building Articulation can be substituted if administratively approved by the Administrative Official. 3) Roofs. a. Except for porch roofs and shed roofs, pitched roofs shall have a minimum slope of 6" x 12" (six inches vertical rise for every 12 inches horizontal run) and shall have an overhang at least 1' (one foot) beyond the building wall; however, the overhang shall not encroach into a setback more than one foot. Porch roofs and shed roofs must have a minimum pitch of 4" x 12". b. Roofing materials in all residential districts may only consist of architectural asphalt shingles (including laminated dimensional shingles), clay and concrete tile, metal shingles, mineral -surfaced row roofing, slate and slate -type shingles, wood shingles, wood shakes or an equivalent or better product as compared with said materials. Should architectural shingles be used as roofing material, said shingles shall be accompanied with a minimum 25 year warranty. Under no circumstances shall three -tab shingles be used as roofing material. 4) Garages. Garages maybe front facing orJ Swing type. 17 5) Fenestration. a. Windowless exterior walls, excluding garage doors that face a public right-of-way, or other similar highly visible areas are prohibited. On two story structures, windows are required on the first and second story facing a public right-of-way. b. Windows shall be in harmony with and proportionate to the rest of the structure. c. The use of reflective glass on residential structures is prohibited. Reflective glass will be defined as having a visible light reflectance rating of 15% or greater 6) Masonry Content. a. Except as noted below, the exterior walls (excluding windows and doors) on the First Floor Front Elevation of any single family home shall be 90 percent masonry and 80 percent on the second floor front elevation. The total cumulative surface area of the remaining exterior walls (excluding windows and doors) shall be 80% masonry. b. Except as noted below, the exterior walls (excluding windows and doors) on the Front Elevation of any multi -family structure shall be 100 percent masonry. The total surface area of the remaining exterior walls (excluding windows and doors) shall be 90% masonry. c. Second floor Dutch Gable Roof elements are not required to be masonry if setback at least 3 feet from the first floor front elevation vertical plane. 7) Exceptions to the Residential Architectural Standards in this section may be only occur after application and review by the Planning and Zoning Commission and approval by the City Council by Specific Use Permit. (Ord. No. 597-2012, adopted 10/23/2012) 18 V. DEVELOPMENT SCHEDULE Date Total Lots 2015 150 2016 250 2017 300 2018 375 2019 450 2020 550 2021 654 Home construction anticipated through the end of 2021. Section 3. Official Zoning Map The official Zoning Map of the City shall be corrected to reflect the change in zoning described herein. Section 4. Savings, Repealing and Severability Clauses It is hereby declared to be the intention of the City Council that the words, sentences, paragraphs, subdivisions, clauses, phrases, and provisions of this ordinance are severable and, if any phrase, sentence, paragraph, subdivision, clause, or provision of this ordinance shall be declared unconstitutional or otherwise invalid or inapplicable by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality, invalidity or inapplicability shall not affect any of the remaining words, sentences, paragraphs, subdivisions, clauses, phrases, or provisions of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional, invalid or inapplicable words, sentences, paragraphs, subdivisions, clauses, phrases, or provisions. Further, all ordinances or parts of ordinances in force when the provisions of this ordinance become effective that are consistent and do not conflict with the terms and provisions of this ordinance are hereby ratified to the extent of such consistency and lack of conflict, and all ordinances or parts of ordinances in force when the provisions of this ordinance become effective that are inconsistent or in conflict with the terms and provisions contained in this ordinance are hereby repealed only to the extent of any such conflict. 19 Section 5. Penalty Any violation of any of the terms of this ordinance, whether denominated in this ordinance as unlawful or not, shall be deemed a misdemeanor. Any person convicted of any such violation shall be fined in an amount not to exceed $2,000 for each incidence of violation. Each day a violation exists is considered a separate offense and will be punished separately. Section 6. Publication of the Caption and Effective Date This ordinance shall be effective upon its passage by the City Council, approval by the Mayor, and posting and/or publication, if required by law, of its caption. The City Secretary is hereby authorized and directed to implement such posting and/or publication. PASSED by the City Council of the City of Anna, Texas this day of 2014. ATTESTED: APPROVED: Natha Wilkison, City Secretary Mike Crist, Mayor 20 EXHIBIT "A" LEGAL DESCRIPTION BEING all that certain tract of land situated in then Joseph Boyle Survey, Abstract Number 105, the John Coffman Survey, Abstract Number 197 the J. M. Kincade Survey, Abstract Number 509 J. W. Mitchel Survey, Abstract Number 565 the W. Rattan Survey, Abstract Number 752 and the T. Rattan Survey, Abstract Number 785, Collin County, Texas and being all of a called 262.41 acre tract as described by deed to Villages of Hurricane Creek, LP recorded in Volume 5430, Page 9864 of County Records, Collin County, Texas and being part of a called 114.252 acre of land described by deed to Don Collins, et al recorded in Volume 5257, Page 4877 of said County Records and being more particularly described by metes and bounds as follows: BEGINNING at the southeast corner of said 262.41 acre tract, in the west line of said 114.252 acre tract: THENCE S 89°54'24"W, 2687.84 feet; THENCE N 00°04'27"W, 387.21 feet; THENCE N 89°58'14"W, 849.21 feet; THENCE N 03°33'44"E, 1188.00 feet; THENCE N 88°26'26"W, 365.15 feet; THENCE N 23°08'27"W, 67.47 feet; THENCE N 02°48'15"E, 1930.31 feet; THENCE N 89°5255"E, 465.63 feet; THENCE N 89°15'32"E, 742.56 feet; THENCE S 90°00'00"E, 1755.97 feet to the northeast corner of said 262.41 acre tract of land and being the northwest corner of said 114.252 acre tract; THENCE N 89°11'00"E, 794.06 feet; THENCE S 00°10'57"W, 232.18 feet; THENCE N 89°56'12"E, 1184.36 feet; THENCE S 01°06'39"E, 55.96 feet to the beginning of a curve to the right; THENCE with said curve to the right, an arc distance of 205.39 feet, through a central angle of 16°48'41", having a radius of 700.00 feet, the long chord which bears S 07°17'41"W, 204.65 feet; 21 THENCE S 15°42'02"W, 121.60 feet; THENCE with said curve to the left, an arc distance of 205.39 feet, through a central angle of 16°48'41", having a radius of 700.00 feet, the long chord which bears S 07°1741"W, 204.65 feet; THENCE S 01°06'39"E, 201.55 feet; THENCE with said curve to the right, an arc distance of 116.43 feet, through a central angle of 09°31'48", having a radius of 699.99 feet, the long chord which bears S 03°39'15"W, 116.30 feet; THENCE S 08°25'09"W, 393.86 feet; THENCE with said curve to the left, an arc distance of 101.69 feet, through a central angle of 08°19'23", having a radius of 700.03 feet, the long chord which bears S 04°15'28"W, 101.60 feet; THENCE S 00°0544"W, 1035.62 feet; THENCE with said curve to the right, an arc distance of 530.61 feet, through a central angle of 43°25'52", having a radius of 700.00 feet, the long chord which bears S 21°48'40"W, 518.00 feet; THENCE S 43°31'37"W, 241.38 feet; THENCE with said curve to the right, an arc distance of 25.41 feet, through a central angle of 00°02'48", having a radius of 400.00 feet, the long chord which bears S 43°40'02"W, 25.41 feet; THENCE N 89°44'50"W, 655.06 feet; THENCE S 00°56'11"E, 265.80 feet to the Point of Beginning and containing 16,037,378 square feet or 368.2 acres of land more or less. 22 EXHIBIT "B" CONCEPT PLAN 23 N