MANOR EST. TEXAS 1872 CITY COUNCIL WORKSHOP SESSION MINUTES DECEMBER 18, 2024 PRESENT: Dr. Christopher Harvey, Mayor COUNCIL MEMBERS: Emily Hill, Mayor Pro Tem, Place 1 Anne Weir, Place 2 (Arrived at 6:42 p.m.) Maria Amezcua, Place 3 Sonia Wallace, Place 4 Aaron Moreno, Place 5 Deja Hill, Place 6 CITYSTAFF: Scott Moore, City Manager Lluvia T. Almaraz, City Secretary Scott Jones, Economic Development Director Yalondra M. Valderrama, Heritage & Tourism Manager Michael Burrell, Interim Development Services Director Tracey Vasquez, HR Director Gregory Miller, Bond Counsel Veronica Rivera, Assistant City Attorney WORKSHOP SESSION - 6:00 P.M. With a quorum of the Council Members present, the workshop session of the Manor City Council was called to order by Mayor Harvey at 6:11 p.m. on Wednesday, December 18, 2024, in the Manor City Hall, 105 E. Eggleston St., Manor, Texas. A. Discussion on Manor Tax Increment Reinvestment Zone (TIRZ No. 2), Project and Financing Plan. Chris Branham with Catalyst Commercial presented the attached PowerPoint presentation. City of Manor Page 1 City Council Workshop Minutes November 20, 2024 The topics of discussion were the following: What is a TIRZ? TIRZ Purpose History and Background How TIRZ Funding Works Authorized Public Improvements Authorized Public Improvements Benefits ofTIRZ Governance Proposed TIRZ Revenues Projected Costs There was no action taken. ADJOURNMENT The Manor City Council Workshop Session Adjourned at 6:43 p.m. on Wednesday, December 18, 2024. The Manor City Council approved these minutes on the 15th day ofJanuary 2025. APPROVED: Dr. Christopher Harvey Mayor ATTEST: amaars Lluvia T. Almaraz, TRMC City Secretary TEXAS City of Manor Page 2 TOOLS FOR ECONOMIC DEVELOPMENT MANOR TAX INCREMENT REINVESTMENT ZONE (TIRZ) #2 Prepared By Catalyst Commercial December 2024 catalyst TIRZ PURPOSE To help finance the cost of redevelopment and encourage development in an area that would otherwise not attract sufficient market development in a timely manner. Taxes attributable to new improvements (the increment) are set-aside in a fund to finance public improvements within the boundaries of the zone. HISTORY AND BACKGROUND TIRZ were created by the Texas Legislature to help finance the cost of improvements needed to promote development or redevelopment in specific geographic areas of a community. A TIRZ is regulated and monitored by the City in accordance with Chapter 311 of the Texas Tax Code A TIRZ... Is one of many Should have Focused on Usually Typically economic clearly capital performance- extends for development identified improvement based 20 years "tools" needs and programs public/private available focused partnerships solutions HOW TIRZ FUNDING WORKS ae Revenues revert value to taxing entity Incremental tax revenue PERAN going to TIF fund Tasale Tax revenue in the base year Zone Term Zone Designated Zone Terminated (Base Year) AUTHORIZED PUBLIC IMPROVEMENTS Public improvements scheduled for the Zones include, but are not limited to, the construction of: Sidewalks, cross walks and Storm sewers and drainage ponds Sanitary sewers pedestrian crossing systems TGMNNG 3 3 AE Landscaping, streetscape, public Plazas, squares,, trails, & public Parking lots and roadways AUTHORIZED PUBLIC MPROVEMENTS Public improvements scheduled for the Zones include, but are not limited to, the construction of. Parks and outdoor spaces Bicycle routes and facilities Public transportation projects Signage and wayfinding Utility relocation & installation Water system improvements Benefits of TIRZ: Ability to provide Pro-active plan that Wide experience TIRZ is incentives for creates path for and examples performance-driven developments over vision across Texas a long term GOVERNANCE 1. The TIRZ Board makes recommendations to the city council concerning the administration of the TIRZ Zones, prepares and adopts project plans, prepares reinvestment zone financing plans, and; prepares, implements, monitors, and submits all plans and an annual report to the city council for approval. 2. Meanwhile, the Manor City Council approves the final Project and Financing Plan, which contains the vision, appoints TIRZ Board of Directors, approves funding source for projects, approves Development Financing Agreements, and approves the Issuance of Debt if appropriate. PROPOSED TIRZ PROPOSED TIRZ catalyst) Manor TIRZ #2 TIRZE Boundary 500 1.000n To utilize tax increment financing ("TIF") in 3 Texas, a tax increment Eas 15 reinvestment zone ("TIRZ") must be created over the specific geographic area (TIRZ) where the public improvements will be reinvested (i.e., constructed). Zones are limited to the percentage of residential property allowed in the Zone. & REVENUES (example) City Participation 25% 50% 75% 100% 25 Years $23,065,180 $46,130,359 $69,195,539 $92,260,718 Yoar Base Year 0 Yoar 1 Year 10 Year 25 Total Base Real Prop Value $ 414,216,265 $ 414,216,265 $ 414,216,265 $ 414,216,265 Total Incremental Real Prop Value $ $ 22,035,347 $ 333,041,349 $ 823,625,030 Total Real Property Value $ 414,216,265 $ 436,251,612 $ 747,257,614 $ 1,237,841,295 Year Base Year 0 Year 1 Year 10 Year 25 Base Real Tax Revenue $ 1,768,082 $ 1,768,082 $ 1,768,082 $ 1,768,082 Incremental Real Tax Revenue $ $ 94,058 $ 1,421,587 $ 3,515,643 Total Real Tax Revenue $ 1,768,082 $ 1,862,140 $ 3,189,669 $ 5,283,726 Above is an example of potential property tax revenues within the proposed TIRZ. This does not factor in any property tax exemptions currently applied to the TIRZ parcels and their associated accounts. Projected Costs ITEM TOTAL COST Professional Fees $4,000,000 10% Demolition $1,600,000 4% Transportation Improvements $5,600,000 14% Structures $1,600,000 4% Utilities $3, 200,000 8% Landscape/rrgation $1,600,000 4% Aesthetic Enhancements $4,000,000 10% Monumentation $800,000 2% Pedestrian Pavement $1,600,000 4% Construction Contingency $8,000,000 20% Utility Relocations $8,000,000 20% TOTAL PROJECT COSTS $40,000,000 100%