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031818 ORD - 07/23/2019
Ordinance approving the amendment to the Tax Increment Reinvestment Zone #2 Amended Project& Financing Plans approved by the Board of Directors of Reinvestment Zone Number Two, Corpus Christi, Texas, on June 10, 2019. WHEREAS, in 2000, through Ordinance 024270, the City of Corpus Christi created a tax increment financing district, to be known as "Reinvestment Zone Number Two, City of Corpus Christi, Texas," over a portion of the City on Padre Island; WHEREAS, Ordinance 024270 included a preliminary reinvestment zone financing plan; WHEREAS, on September 29, 2009, the City Council passed Ordinance 028329, which approved the Revised Project and Financing Plans for the Reinvestment Zone Number Two, City of Corpus Christi, Texas (the "Plan"); WHEREAS, the Plan was last amended on April 16, 2019; WHEREAS, on June 10, 2019, the Board of Directors of Reinvestment Zone Number Two took action to approve amendments to the Plan; WHEREAS, Texas Tax Code Section 311.011(d) provides that the governing body of the municipality that designated the zone must approve a project plan or reinvestment zone financing plan after its adoption by the Board and the approval must be by ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL FOR THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council approves the amendment to the Revised Project and Financing Plans for the Reinvestment Zone Number Two, City of Corpus Christi, Texas ("the Plan") for the Reinvestment Zone Number Two, Corpus Christi, Texas, as approved by the Board of Directors of Reinvestment Zone Number Two on June 10, 2019. A copy of the Plan is attached hereto and incorporated. 031818 S( ANNFfl That the foregoing ordinance was read for the first time and passed to its second reading on this the_ILL`day of , 2019, by the following vote: Joe McComb Ca. Michael Hunter l%-/ Roland Barrera CA Ben Molina otije n Rudy Garza P' ie./ Everett Roy 0A-(. /642U OC J Paulette M. Guajardo Greg Smith i Gil Hernandez atne- That the foregoing ordinance was read for the second time and passed finally on this the1;310( day of.. 2019, by the following vote: Joe McComb 0.t,, i44 Michael Hunter nn Roland Barrera Ben Molina l �C.0 , Rudy Garza (4 Everett Roy Paulette M. Guajardo l // U Greg Smith 1_,�. Gil Hernandez PASSED AND APPROVED on this thee day of o,I , 2019. ATTEST: gtelle,[t— N Vvt. CA..4?-viAW/— Rebecca Huerta Joe Comb City Secretary Ma o 031918 Reinvestment Zone Number Two City of Corpus Christi, Texas Project Plan and Reinvestment Zone Financing Plan February 25, 2003 Reinvestment Zone Number Two, City of Corpus Christi, Texas February 25, 2003 Project Plan and Reinvestment Zone Financing Plan Introduction to The Project and Finance Plan General Background As required under the Tax Increment Financing Act,Chapter 311,Texas Tax Code(the"TIF Act"),the Board of Directors(the"Zone Board")of Reinvestment Zone Number Two,City of Corpus Christi,Texas(the"Zone"), has prepared this Project Plan and Reinvestment Zone Financing Plan(the"Plan"). The City Council ofthe City of Corpus Christi, Texas (the "City") and the Zone Board must both adopt this Plan. The Plan includes information concerning proposed land uses and development, estimated project and non-project costs and administrative expenses,engineering studies,proposed financing and economic feasibility data,and property appraisal data. The Plan includes financing of the Zone's portion of the North Padre Island Storm Damage Reduction and Environmental Restoration Project (the"Project"). This Plan sets out the details of the tax and economic benefits derived from development of the Project Site, the scope of the Project, and the financing strategy for funding of Project costs through the issuance of bonds. Complete copies of the Plan,including a report attached to this Plan,as Exhibit A,entitled"Forecast of Potential TIF Revenue Flows on North Padre Island",prepared by Economics Research Associates("ERA"),which constitutes the economic feasibility study required by the TIF Act, are available from the City of Corpus Christi,Texas, 1201 Leopard Street, Corpus Christi,Texas 78401,Attention:City Secretary. North Padre Island Storm Damage Reduction and Environmental Restoration Project The Project is a project of the U.S.Army Corps of Engineers(the"Corps")to dredge and channelize a reopened waterway("Packery Channel")between the Laguna Madre Intracoastal Waterway and the Gulf of Mexico. In addition to the Packay Channel, the Project includes construction by the Corps of two 1,400 foot jetties paralleling the Packery Channel. Of the total $30,000,000 projected cost of the Project, the City as Project sponsor has agreed to pay $10.5 million. The ranaining Project costs are to be paid by the United States Government. The City has created the Zone for the purpose of raising funds needed to provide the Zone Project costs through the issuance of bonds by the North Padre Island Development Corporation(the"Issuer''),a not-for- profit local government corporation.It was established by the City under the provisions of Chapter 431,Texas Transportation Code,and the general laws of the State of Texas to aid,assist,and act on behalf of the City in the performance of the City's governmental functions and to provide a means of financing certain Project costs in connection with the Zone. The Corps was directed by the Congress of the United States("Congress")to carry out a project for ecosystem restoration and storm damage reduction at North Padre Island.The Project will extend the existing approximately 2.6 miles portion of the Packery Channel an additional 0.9 mile. The Project is described in the Environmental Impact Statement(EIS), as are the benefits and impacts to be expected from the Project. Erosion of the beach in front of the seawall just south of the boundary between Mustang and North Padre Islands is causing a loss of recreational beach. Dredging Packery Channel would provide sand for nourishment of the beach,and an enlarged beach would reduce potential figure storm damage.A Project Study Plan,prepared by the Corps in 1999,examined three alternative sites,including Packery Channel. Three different channel widths under three different salinity regions were also examined to determine the environmental benefits of an opening between the Laguna Madre and the Gulf of Mexico.The environmental 1 benefits of all alternatives were essentially negligible. The final EIS will be available upon publication by the Corps from the City of Corpus Christi,Texas, 1201 Leopard Street,Corpus Christi,Texas 78401,Attention: City Secretary. The Project is a project for ecosystem restoration and storm damage reduction consisting of a jettied entrance channel,main channel dredged to a required depth of 14 feet and a bottom width of 116 feet up to the Texas Highway 361 bridge, scour protection for the existing bridge,concrete bulkheads on both sides of the main channel creating three placement areas to create shallow water habitat,continuing with a smaller channel along the existing alignment of Packery Channel from the highway bridge to the Gulf Intracoastal Waterway,dredged to a required depth of 7 feet and bottom width of 80 feet,installation of a 30 inch HDDPE pipe for a sand bypass system,beach nourishment on the beach south of the channel and miscellaneous utility removals and relocations. The Project consists of dredging a 134-foot wide channel to connect the existing Packery Channel to the Gulf of Mexico to a 12-foot deep authorized depth(requiring an initial dredge depth to-14 feet)and dredging the existing channel to a depth of-7 feet(mean sea level)and a width of 80-feet. The total length of the proposed channel from the Gulf end of the jetties to the Gulf Intracoastal Waterway is approximately 18,500 feet(3.5 miles). Approximately 801,200 cubic yards(cy)of material will be dredged during construction,most of which(646,000 cy)will be placed on the beach south of the proposed jetties placement area(PA-4S)for storm damage reduction in front of the existing concrete seawall.Sandy maintenance material from the channel cast of the SH 361 bridge will be used for beach nourishment,and a sand bypass system will be designed to move accumulated sand from longshore drift to the downdrift side of the jetties.Approximately 15,000 cy of estimated maintenance dredging every five years will be placed in an upland site. The Project is to be constructed by the Corps under a proposed Project Cooperation Agreement between The Department of the Army and the City (the"Project Contract"). The Project Contract has not been approved by either the Corps or the City,but the City expects execution of the Project Contract by both parties by Spring 2003. The Plan calls for the remainder of the approximately$19.5 million needed to complete the Project to be funded by the United States Government under the Project Contract. As of February 25,2003,Congress has appropriated$4.0 million for Project construction,but is under no obligation to appropriate the remainder of its share of Project costs. Once the initial Project is completed,the City will incur costs of maintenance dredging of Packery Channel,as described above. It is anticipated that upon completion of the initial Project,the estimated maintenance dredging will commence in 2008, and the estimated cost of such maintenance dredging in that year will approximate $350,000. The costs of the maintenance dredging are intended to be paid by the Zone,either from tax increment collections,proceeds from bonds,a combination of those two sources,or other moneys made available to the City or the Zone for such purpose. Secondary development within the Zone that includes public improvements is being proposed by the City as local sponsor. Secondary development includes proposed park amenities that encompass approximately 14.2 acres providing access to Packery Channel, the beach, and the jetties; passenger and recreational vehicle parking; walkways;restrooms;and vendor facilities.The location of two potential City park areas is proposed along the area nearest the Gulf of Mexico reach of Packery Channel. The Project,the maintenance dredging of the Packcry Channel,and the public improvements associated with the proposed secondary development are found to be"Project Costs"as such term is defined in the TIF Act. The Project Contract The Project is to be constructed by the Corps under the Project Contract. The Project Contract has not been approved by either the Corps or the City,but the City expects execution of the Contract by both parties by Spring 2003.Under the Project Contract,the Corps,subject to receiving funds appropriated by Congress and using the 2 finds expected to be provided by the City through the Issuer,would agree to expeditiously construct the Project The Project Contract recognizes that Congressional appropriations to date arc less than the amount of federal funds required for completion of the Project,and that in the event insufficient funds are appropriated for the federal government's share of Project costs,then Project construction will be suspended or the Project Contract terminated. The federal government expressly makes no commitment to seek additional federal funds for the Project. The City would agree to contribute 35% of the total Project costs, at least five percent of which must be contributed in cash with the remainder being the appraised value of cash or lands,easements,rights-of-way,and suitable burrow and dredged or excavated material disposal areas. The City must deposit its share of projected financial obligations for construction through the first fiscal year of construction within 45 days of notice from the Corps. For each subsequent year,the deposit must be made no later than 60 days prior to the beginning of the fiscal year. The Project Contract obligates the City to operate,maintain,repair,replace,and rehabilitate the entire Project at no cost to the federal government. The City is seeking transfer of a portion of the maintenance cost to the Corps, but at this time no provision has been made for payment of ongoing maintenance costs. Funding of a maintenance reserve from proceeds of an additional series of Tax Increment Contract Revenue Bonds is contemplated by this Plan,but that is no assurance that a maintenance reserve will be funded,nor is there any guarantee that if funded the maintenance reserve would be adequate to pay costs of ongoing maintenance Wig- Reinvestment Zone Number Two, City of Corpus Christi, Texas The Zone was created by the City pursuant to the TIF Act to facilitate development of the land within the boundaries of the Zone,a 1,947.01-acre parcel located entirely within the City and the County. The Zone became effective on November 14,2000,and will terminate on December 31,2022,or at an earlier time designated by subsequent ordinance of the City,or at such earlier time that all Zone Project Costs,tax increment bands,and the interest on all tax increment bonds,have been paid in full(the duration of the Zone).The Zone is located on Padre Island,and intersected by State Highway 361 and Park Road 22 leading from the John F.Kennedy Causeway.A map showing the existing uses and conditions of real property in the Zone is attached to this Plan as Exhibit B. A map showing the proposed improvements to and proposed uses of the real property in the Zone is attached to this Plan as Exhibit C. Pursuant to the TIF Act,the ordinance of the City establishing the Zone also established a Board for the Zone. The Zone Board consists of 12 persons,with one member from each Participant other than the City, and the remainder(but not less than 10)appointed by the City. Name Po 'tion Appointed By Samuel L.Neal President City of Corpus Christi Vice President Nueces County Javier D. Colmenero Member City of Corpus Christi Brent Chesney Member City of Corpus Christi Rex Kinnison Member City of Corpus Christi John Longoria Member City of Corpus Christi Jesse Noyola Member City of Corpus Christi Mark Scott Member City of Corpus Christi Gabriel Rivas Member Del Mar College Cal Jennings Member Nueces County Hospital District Richard Pittman Member Flour Bluff Independent School District John LaRue Member Port of Corpus Christi Authority 3 Existing Land Use Existing land-uses within the Zone consist of light commercial development,mixed residential development, vacant unimproved land,and non-developable land,including waterways,roadways and parks. The City has estimated the following current usage within the Zone: Use Acer Vacant 857.1718 Water Area 447.8253 Park 384.5719 Right-of-Way 158.2465 Commercial 33.6232 Medium Density Residential 34.4813 Public/Semi-Public 9.0187 High Density Residential 7.7001 Professional Office 6.0570 Light Industrial 6.5105 Low Density Residential 1.8075 Total 1.947,4j38 Infrastructure Requirements for Development It is the City's policy that infrastructure required for new development within the Zone will be the responsibility of each landowner or developer, similar to any other development that occurs in the City. The wastewater treatment plant and trunk main collection system is in place and is of sufficient capacity to accommodate new development,and sufficient freshwater supply is available to serve anticipated development within the Zone. There are generally roads and streets throughout the Zone,though individual tracts may require additional strati construction,sewer collection lines,or water supply lines for development The City pays for oversize and extra depth costs associated with water and wastewater extensions that are designed to service property outside or beyond the owner's development The City participates in street development to pay the additional costs for extra width associated with arterial streets or collectors that arc designed to be extended beyond the developer's property. The City also pays for the costs of bridges and culverts to extend streets beyond the developer's proPerty- Undeveloped Land Within the Zone Approximately 857 acres within the Zone are unimproved or underdeveloped land. The City anticipates that such unimproved land will be developed for residential and light commercial use consistent within existing uses,and additional development must occur before the Issuer can provide for the payment of additional Tax Increment Contract Revenue Bonds(hereinafter defined)required for completion of the Project without adversely affecting the Issuer's ability to pay debt service on the Series 2003 Bonds(hereinafter defined). No representation is made in this Plan with respect to the ultimate development of such property. Project Costs A detailed listing of the proposed public works and public improvements to be undertaken in the Zone,shown by kind,number and location,and the Project costs of the Zone,including,without limitation,the costs of the initial dredging of Packe y Channel,the maintenance dredging costs,secondary Project costs,administrative costs of the Zone, and other non-project costs (such as water supply improvements and roads that are not intended to be funded through the operation of the Zone), are set forth in Exhibit D. The estimated amount of bonded 4 indebtedness to be incurred to pay initial Project costs, and the timing of when related costs and monetary obligations for implementing this Plan are to be incurred,arc set forth in Exhibit D.The City currently estimates that the total amount of Issuer debt necessary to be issued for completion of initial Project costs will not exceed $12,000,000. Secondary development improvements are to be financed as funding becomes available from surplus tax increments or bonds. The City currently estimates the total amount of Issuer debt that may be issued for secondary developments will not exceed$3,000,000. The Plan of Finance The City has created the Zone for the purpose of raising funds needed to provide the City's share of the Project costs,and the Series 2003 Bonds(hereinafter defined)are the first installment of Issuer bonds to be issued for that purpose. The City,the County,Del Mar College,a junior college district and political subdivision of the State of Texas (the"College")and Nueces County Hospital District,a hospital district and political subdivision of the State of Texas(the"Hospital District")each have agreed to deposit to the Tax Increment Fund established for the Zone (the"Tax Incrust Fund")certain tax collections arising from their respective taxation of the increase,if any,in the appraised value of real property located in the Zone since November 14,2000(hereinafter defined as the (Dedicated Tax Increments"),through the earlier of December 31,2022,or the date on which any outstanding obligations payable from the Dedicated Tax Increments are finally paid. The City has entered into separate interlocal agreements(the"Interlocal Agreements")with the County,the College,and the Hospital District which sets forth,among other things,the agreement of the City and County,College,or Hospital District,as applicable, to pay to the Issuer the Dedicated Tax Increments(the"Contract Tax Intents"). The bonds to be issued to fund Project costs are to be payable solely from the Contract Tax Increments and certain other funds on deposit with JPMorgan Chase Bank,Houston,Texas (the"Trustee")or which may be deposited with the Trustee in the future together with earnings and investments thereon(the"Pledged Revenues"). The City,the County,the College,and the Hospital District(each referred to individually herein as a"Parte' and collectively referred to as the"Participants")have agreed to deposit to the Tax Increment Fund the Dedicated Tax Increments,as described herein. Pursuant to the TIF Act,a taxing unit's tax increment for a year(a"Tax Increment")is the amount of property taxes levied by the unit for that year on the"captured"appraised value of real property taxable by the unit and located in a reinvestment zone.Tax Increments do not result from any increase in the appraised value of personal property(such as equipment or inventory)taxable by the unit and located in a reinvestment zone. The TIF Act defines captured appraised value("Captured Appraised Value")as the total appraised value of all real property taxable by the unit and located in a reinvestment zone less the tax increment base of the unit. The tax increment base of a taxing unit(the"Tax Increment Base")is the total appraised value of all real property taxable by the unit and located in a reinvestment zone for the year in which the zone was designated. In the case of the Zone,the Tax Increment Base is the total appraised value of all real property in the Zone taxable by the relevant Participants as of January 1, 2000. Tax Increments result only from Captured Appraised Value in the Zone, which consists of 1,947.0138 acres,approximately 542.8184 of which is publicly owned and not taxable. Exhibit A shows(a)the Tax Increment Base of the Zone,(b)the current(as of the date of this Plan)total appraised value of taxable real property in the Zone and(c)the estimated captured appraised value of the Zone during each year of its scheduled existence. Pursuant to separate Interlocal Agreements between the City and each of the County, the College, and the Hospital District, respectively (the"Interlocal Agreements") the Participants have agreed to deposit all or a portion of their Tax Increments to the Tax Increment Fund. The City,the County,and the Hospital District have agreed to deposit to the Tax Increment Fund 100%of their tax collections on Captured Appraised Value in the 5 Zone for each tax year that the Zone remains in existence,commencing in tax year 2000. The College has agreed to deposit to the Tax Increment Fund 100%of the its Tax Increments for the first five years(2000-2004)of the Interlocal Agreement,80%for the sixth year(2005),60%for the seventh year(2006),40%for the eighth year (2007),20%for the ninth year(2008),and none thereafter.The amounts the Participants have agreed to deposit to the Tax Increment Fund are referred to herein as the"Dedicated Tax Increments." The obligations of the Participants to pay Dedicated Tax Increments into the Tax Increment Fund are subject to the rights of any of the holders of bonds,notes or other obligations that have been or are hereafter issued by a Participant that art payable from and secured by a general levy of ad valorem taxes throughout the taxing jurisdiction of that Participant North Padre bland Development Corporation The Issuer The Issuer is a not-for-profit local government corporation and was established by the City under the provisions of Chapter 431,Texas Transportation Code,and the general laws of the State of Texas to aid,assist,and act on behalf of the City in the performance of the City's governmental functions and to provide a means of financing certain Project costs in connection with the Zone. It is governed by a Board of Directors,whose members are appointed by the City Council. On December 17,2002,the City Council of the City appointed all of the members of the City Council to serve as members of the Corporation. The Bonds It is anticipated that three series of bonds will be issued by the Issuer to finance the initial costs of the Project. The first series of bonds is anticipated to be issued in the spring of 2003(the"Series 2003 Bonds"),in unction with the implementation of this Plan. Should bonds be issued to fund the costs of maintenance dredging,it is anticipated that funds for such use would be included in the third series of bonds to be issued. The Series 2003 Bonds are the first issue of bonds(the"Tax Increment Contract Revenue Bonds")to be issued by the Issuer. The Tax Increment Contract Revenue Bonds,including the Series 2003 Bonds,are secured by the Issuer's pledge of payments to be received pursuant to a Tri-Party Agreement among the City,the Zone,and the Issuer(the"Tri-Party Agreement"). Under that agreement,the Contract Tax Increments will be paid into the Tax Increment Fund at the City's depository. The Bonds will fund a portion of the City's share of the Project Costs. Completion of the Project will require additional funding,which currently is anticipated to be provided through the issuance of additional bonds by the Issuer secured from Dedicated Tax Increments on parity with the Bonds. Secondary development improvements may also be financed from additional bonds. For the Issuer to be able to repay such additional bands,substantial growth in the taxable values within the Zone must occur,and there is no guarantee that such growth will have been accomplished prior to the timing of funding the remaining phases of the development and completion of the Project. Growth in taxable values within the Zone is dependent on future development of additional taxable improvements. While the City expects that such additional improvements will be constructed if the Packery Channel is completed,there are approximately 1,838 tracts of land within the Zone owned by approximately 1,054 different owners,and neither the Issuer nor the City has any agreement with any landowner fix construction of improvements within the Zone,or knowledge that any landowners intend to c anttuct additional impiovunents. Without future development within the Zone,there can be no guarantee of additional Dedicated Tax Increments sufficient to pay debt service on bonds issued to finance the Project A projection of the Project costs to be funded with bond proceeds and the sizing of the bond issues to fund those Project costs is set forth in Exhibit D. The Tri-Party Agreement 6 The City,the Zone and the Issuer will enter into the Tri-Party Agreement Pursuant to the Tri-Party Agreement, the Issuer will provide certain management and administrative services es for the Zone. The Issuer is authorized to issue bonds or enter into other obligations to be repaid from Contract Tax Increments but only with the approval of the City Council. The Issuer agrees to use all Contract Tax Inas in a manner consistent with the Plan. The Tri-Party Agreement provides for duties and responsibilities of the City with respect to Dedicated Tax Increments and provides for duties and responsibilities of the Zone with respect to Dedicated Tax Increments. The Dedicated Tax Increments are to be deposited when received into the Tax Increment Fund. The City and the Zone will covenant and agree that they will continuously collect the Dedicated Tax Increments from the Participants in the manner and to the maximum extent permitted by applicable law. To the extent the City and Zone may legally do so,they also will covenant and agree that they will not pemnit a reduction in the Dedicated Tax Increments paid by the Participants. The City will covenant and agree to annually levy,assess and collect its ad valorem taxes in the Zone.The City and the Zone will agree to pay to the Issuer the Contract Tax Increments in consideration for the Issuer funding certain of the Project costs with the proceeds of the Tax Increment Contract Revenue Bonds. The obligations of the City and the Zone to pay Contract Tax Increments shall be subject to the Tri-Party Agreement and the rights of any of the holders of bonds,notes or other obligations that have been or are hereafter issued by the City,the County,the College,or the Hospital District that are payable from and secured by a general levy of ad valorem taxes throughout the taxing jurisdiction of the City,County,College,or Hospital District. It is anticipated that the interests of the Issuer in the Tri-Party Agreement will be assigned to the Trustee for the Tax Increment Contract Revenue Bonds under the terms of the Indenture pursuant to which such Tax Increment Contract Revalue Bonds are to be issued. The Tri-Party Agreement may be amended with the mutual consent of the parties;however,any amendment must be accompanied by an opinion of counsel to the Issuer to the effect that such amendment will not materially impair the rights of the owners of the Issuer's bonds or other outstanding obligations. 7 Reinvestment Zone Number Two City of Corpus Christi, Texas EXHIBIT A Forecast of Potenthd TIF Revenue Flows on North Padre bland (Final Report) Dated:August 2002 ERA Project Number: 14663 Final Report Forecast of Potential TIF Revenue Flows on North Padre Island Submitted to: The City of Corpus Christi August 2002 ERA Project Number. 14663 r 4 \ TABLE OF CONTENTS General Limiting Conditions iv Introduction 1 Approach 2 Participating Jurisdictions 3 Methodology 3 TIF REVENUE ANALYSIS 5 Summary 5 Real Estate Market Discussion 5 TIF Waterfront Properties 2002 6 Growth Rates 10 Padre Island 10 TIF Revenue Conclusions 11 TV Analysis for Nash Padre Lund—Find Page N !I abed -pud lasoN sis4wnr iu £I (5000$)Z Puy I souguaaS `ainpagaS anuanuji xgl pug=TEA atgExEi 31.L '£t *MU. Z t Z pu' i souEaaaS `alnPagas anuanas iLL I uq!I3 I I ZZOZ- IOOZ `anuana21 Pae an1EA alquxel 1au1s!Q AIL. Z u!nuaaS ZI atgel I l ZZOZ - i ooz `anuanaJi pue anlEA algExe1,1au15'u dLL.1 oueaaas -I I alggs, 0I ZOOZ-Z661 -uog30-1 4 liVticuD Purisi a1P d '01 algq.L 01 saivadoia 1dwm3 '6 alcIEl 6 satuadoid 1uoig lawAN 1dwaxg-uoN lamp 'g alga 6 sagiadoid Wed 'L aIgEl 8 Pu1s!Q ILL aql ul sarlad01d wn!unuopuo) '9 algEJ 8 aftuog ia1eM tq an1'A passassd wnpnwopuo3 many •S algal L uoneaa1 anisA pus-i passassd a$elany p algvi 9 lagtsKi aqi wpm anleA Pue uoprao'1 Aq sa!1sadold 1uagia1EM -E aiggl £ suorla!psunf Surlgdiagigd ioj said x`El 'Z aiqu, Z 000Z-131-1s1Q laaivanoidwi 72 purl Jo aNexei i algEl miuqxa puts saiq L jo bbd gig GENERAL LIMITING CONDITIONS Every reasonable effort has been made to ensure that the data contained in this study reflect the most accurate and timely information possible, and they are believed to be reliable. This study is based on estimates, assumptions and other information developed by Economics Research Associates from its independent research effort, general knowledge of the industry, and consultations with the client and the client's representatives. No responsibility is assumed for inaccuracies in reporting by the client, the clients agent, and representatives or any other data source used in preparing or presenting this study. No warranty or representation is made by Economics Research Associates that any of the project values or results contained in this study will actually be achieved. Possession of this study does not carry with it the right of publication thereof or to use the name of"Economics Research Associates" in any manner. No abstracting, excerpting, or summarization of this study may be made. This study may not be used for purposes other than that for which it is prepared. Exceptions to these restrictions may be permitted after obtaining prior written consent from Economics Research Associates. This study is qualified in its entirety by, and should be considered in light of, these limitations, conditions and considerations. TIF Areal/pia for North Pedro blond-Roof Psi iv r R � fl INTRODUCTION Economics Research Associates (ERA) was engaged to provide the City of Corpus Christi with estimates of tax increment revenues in the proposed North Padre Island Tax Increment Finance (TIF) district. ERA understands that estimated future tax revenues from the district will be targeted to fund a portion of the development cost of funding the North Padre Island Damage Reduction and Environmental Restoration Project. This forecast makes use of data provided by the City of Corpus Christi and the Nueces County Appraisal District covering property tax rates, assessed values, and actual historic taxes paid for the defined TIF district. Data from these sources have been assessed to generate a reasonable estimate of potential tax increment revenue. This report is independent from an earlier report prepared by ERA in the year 2000. This report does not assume any major development in North Padre Island and uses a different methodology to forecast tax revenue in the TIF District. Some numbers are rounded and might differ from the original database. Although every possible effort has been made to present correct information, some errors might be present due to handling of large data sets in a short time period. However, ERA believes that the results are reasonable and concur with the data available. ERA would like to thank all staff members at the City of Corpus Christi and the Nueces County Appraisal District for providing us with data in timely fashion that ensured preparing a comprehensive report. TIF Analysis for North Padre Island—Anal Pegs 1 APPROACH The approach followed by ERA first defines the current baseline assessed and taxable value of the proposed TIF district, using assessment information for land and improvements provided by officials with the City of Corpus Christi and the Nueces County Appraisal District. ERA understands that the base year for the district is calendar year 2000. From this base year value, ERA generates two sets of TIF revenue inputs. • Forecast growth in the taxable value of currently existing buildings and vacant land in the district over a 20-year period using constant growth rate for all types of properties. • Forecast growth in the taxable value of currently existing land and development in the district using variable growth rates based on location within the district. Growth in assessed values and taxes paid for current improvements and vacant land, as well as new development, beyond levels defined in the base year constitute the increment in property tax revenue that can be captured for potential use in the Packery Channel project. Working with officials at the Nueces County Appraisal District, City officials provided ERA with year 2000 assessed and taxable values for all land and improvements in the proposed TIF district. The following table indicates that the district currently contains vacant land and improvements amounting to $85,870,603 in taxable value. The table breaks down values between home site and non-home site land and improvements, as well as exemptions and adjustments, to arrive at a total taxable value. Exemptions and adjustments are made for homestead, disabled individuals and veterans, and people over 65 Preliminary assessments for 2001 are$98,153,611 and for 2002 $107,588,794. Table 1.Taxable Value of Land &Improvement, TIF Dis rict- 2000 Category Valoe Land—Home Site $5,491,354 Land—Non-Home Site $23,947,556 Improvements—Home Site $42,200,590 Improvements—Non-Home Site $17,684,297 Sub-Total $89,323,797 Exemptions&Adjustments $3,453,194 Total Taxable Value $S5,870,603 Source:Nueces County Appraisal District Looking further at the above table, ERA determined that home site improvements include single-family homes as well as higher-density condominium projects on the seawall. This distinction is important because home site land accounts for only 18% of total land assessed value, but home site improvements account for 70%of total improvements. TIF Analysis for North Padre Chad—Final Page 2 Participating Jurisdictions Four jurisdictions are contributing 100% into the tax increment fund for the whole period starting in 2001 through 2022. One jurisdiction, Del Mar Jr. College, is contributing 100% into the tax increment fund for the first 5 years, 80% for the sixth year, 60%for the seventh year, 40% for the eighth year, 20% for the ninth year and 0% thereafter. Three jurisdictions will not participate: Flour Bluff Independent School District (ISD), Port of Corpus Christi and Fire District #2. The following table shows tax rates schedule per $100 of taxable value. Table 2.Tax Rates for Participating Jurisdictions Jurisdictions Providing ALL 2001-2005 2006 2007 2008 2009 2010-2022 Increment Jurisdictions City of Corpus Christi 0.644175 0.644175 0.644175 0.644175 0.644175 0.644175 0.644175 Farm to Market Rd. 0.005238 0.005238 0.005238 0.005238 0.005238 0.005238 0.005238 County Hospital 0.228028 0.228028 0.228028 0.228028 0.228028 0.228028 0.228028 Del Mar k. Collage 0.21988 0.21988 0.175904 0.131928 0.087952 0.043976 0 Nueces County 0.350242 0.350242 0.350242 0.350242 0.350242 0.350242 0.350242 Port of Corpus Christi 0.002117 Flour Bluff ISD 1.526197 Fire District#2 0.022200 TOTAL 2.998077 1.447563 1.40359 1.359611 L31564 1.27166 1.227683 Note:Assuming tax rates do not change Bourne:Nueces County Appraisal District,City of Corpus Christi Regarding the above tax rates, local officials indicated that they did not expect to see unusual growth in the above tax rates in the near future. Following standard TIF modeling guidelines, ERA has taken the above tax rates and held them constant for the duration of the 20-year TIF model. With tax rates held constant, key drivers of the forecast become rates of appreciation for existing improvements and vacant land. Methodology In order to estimate a reasonable tax revenue flow, ERA made the following assumptions: • Base tax year is 2000 • 2002 tax rates for each participating jurisdiction are assumed fixed for the whole period(through 2022) • Tax increment fund starts in 2001 • End of TIF district is 2022 • Packery Channel will be completed in 2004 • The TIF district tax revenue flow is completely independent of any potential major development that could potentially have a great impact on other developments and land value. TIF Analysis for North Padre Island-Final Page 3 • First to Increase: Value of land and current developments with water frontage in the District excluding beach properties will be the first to increase in value due to the opening of Packery Channel, as it would provide direct access to the Gulf of Mexico. • Magnitude of Increase: Water front properties (vacant land) in the District excluding beach properties will have the Beater increase in value compared to properties without water frontage. It is assumed that the value will approach the value of vacant beach properties. Based on the above assumptions, ERA compiled data from the City of Corpus Christi and the Nueces County Appraisal District to estimate current land and improvement value by location in the District. Using Tax ID data, ERA aggregated properties based on their location by defining 4 distinct locations: • Beach • Lake Padre • Other water front properties • Non-water front properties After linking each property to a location, total assessed and taxable values were calculated for each location. Value comparison was established and was later used to estimate growth rates for properties within the District. ERA also aggregated all values of properties on North Padre Island for the past 10 years to estimate an average calculated average growth rate (CAGR) for the island. This CAGR was then applied in the forecast model. Tax rates from the participating jurisdictions were then applied to estimate tax revenue flows. TIF Anal*,for North Padre bland—Rnal Page 4 TIF REVENUE ANALYSIS Summary Two scenarios were developed and are presented in this report. The first scenario applies an annual growth rate of 9% from 2003 through 2012, and 3% annual growth rate from 2013 through 2022 for all properties within the TIF District. The 9.1% annual growth rate represents the CAGR of the assessed values of all properties on Padre Island from 1992 through 2002. The second scenario applies different annual growth rates for each property type in the TIF district. Waterfront properties on Lake Padre, the canal and on the proposed Packery Channel are estimated to grow at an annual rate of 24% between 2003 and 2007. During the same period, Beach properties and non-waterfront properties are assumed to grow at 9.1%. From 2008 through 2022, all properties are estimated to grow at the inflation rate of 3% per annum. The 24% annual growth rate represents the estimated CAGR of the total taxable value of TIF properties within the five participating jurisdictions from 1996 through 2001. The two scenarios are conservative and do not assume any new development From 2001 through 2022 and using 2000 as the base year, the first scenario generates a total tax revenue of $63.4 million of which $38.9 million is the TIF revenue. The second scenario generates a total tax revenue of$55.9 million of which $31.3 million is TIF revenue. A detailed analysis follows. Real Estate Market Discussion Economics Research Associates conducted a number of telephone interviews with accredited realtors in Corpus Christi and Padre Island. The general consensus has been that over the past three years demand for good properties, defined as those in good repair, modern appliances, visually appealing and have good access, has increased remarkably. This increase in demand, the limited supply, and a strong market let to an increase in prices. The demand for weekend and seasonal homes from residents of large Texan cities, such as Dallas, Houston and San Antonio is also pushing prices upward. Aging baby-boomers and a healthy economy had lead to strong demand of retirement and seasonal homes in Padre Island. This demand has exceeded the markets ability to supply more housing units. Another factor in the escalation of price and demand is speculation regarding the Packery Channel, which would connect Lake Padre and the Packery Channel to the Gulf of TIF Analysis for North Pedro Island—Final Page 5 111111 Mexico. The Channel is perceived as a convenient way to provide access to the Gulf of Mexico from Lake Padre and the intercoastal areas. Some realtors indicated that Lake Padre properties would be more attractive to sailing enthusiasts that would need to be east of the 22-foot bridge to benefit from the Channel. This is assuming a marina is developed on Lake Padre. Properties without water access, known among realtors as dry or interior properties, on Padre Island can demand a $10,000-$15,000 premium over comparable properties in the city. Some realtors indicated that the difference in price between water-accessible and dry properties on Padre Island is too great to characterize. When asked about Port Aransas and how the market compares to Padre Island. Most realtors indicated that properties in Port Aransas, 20 miles from Corpus Christi, are overpriced and are not comparable in quality. Realtors also indicated that Padre Island has strong attributes and character that would attract investors to develop resorts, something that Port Aransas lacks. TIF Waterfront Properties 2002 Using the micro level data (property tax records) obtained from the City of Corpus Christi and the Nueces County Appraisal District, ERA was able to compile waterfront properties in the TIF District by location and type. The TIF District has 1,930.08 acres with a total assessed value of $107.59 million in 2002. Approximately 51% of land have or will have (after the opening of the Packery Channel) water frontage or 977 acres. Approximately 203 acres or 21% of water front properties are exempt properties. The waterfront properties have a total assessed value of $65.1 million and a total taxable value of $60.6 million. The following tables show waterfront properties by location, land value, improvement value, total exemptions, taxable value, and acreage. Table 3. Waterfront Properties by Location and Value within the TIF District Type Acres Land Value Improvement Total Assessed Taxable Value Value Value Condos Beach 13.45 $2,450,499 $28,962,543 $31,413,042 $29,048,886 Across from the Beach 3.61 $281,352 $3,902,799 $4,184,151 $3,533,871 Other-Lake Padre,Canal 10.93 $1,459,001 $11,600,220 $13,059,221 $11,503,641 Lake Padre 470.66 $4,591,013 $938,742 $5,529,755 $5,517,325 Beach 53.20 $2,577,105 $4,355,083 $6,932,188 $6,932,188 Exempt 202.86 $0 $0 $0 $0 Other 222.24 $2,517,234 $1,669,836 $4,187,070 $4,054,928 TOTAL WATER PROPERTIES 976.95 $13,876,204 $51,429,223 $65,305,427 $60,590,839 Source:Notices County Appraisal District,Economics Research Associates TIF Analysis for North Padre Inland—Final Palle 6 11111111 Most of the condominium properties are older developments dating to mid 1980s especially the ones with a beach frontage. Most of the properties on Lake Padre are parcels of vacant land. The other non-classified properties are parcels located on the Canal and what would be on the Packery Channel. Land value, as expected, increase as it approaches the Beach. The most expensive land parcels are those of condominium with beach frontage with over $180,600 per acre. The second highest, on average, are condominium properties on Lake Padre with $133,500 per acre followed by condominium properties located across from the Beach. As expected developed land, although with indirect beach frontage has more value than undeveloped beach parcels. It is plausible to assume that the value of land parcels with beach frontage would more than quadruple in value after it is developed. The following Table shows average assessed value per acre by location. Table 4.Average Assessed Land Value by Location Type Acres Average Land Value (5/Acre) Waterfront Pronertles Condos Beach 13.45 $180,623 Across from the Beach 3.61 $77,844) Other-Lake Padre,Canal 10.93 $133,448 Lake Padre 470.66 $9,754 Beach 53.20 $48,442 Exempt 202.86 $0 Other 222.24 $11,327 TOTAL WATER PROPERTIES 976.95 $17,897 Note:Total average land value excludes exempt properties Source:Nueces County Appraisal District,Economics Research Associates There are 16 condominium developments in the TIF district, of which four are located on the beach, three are located across from the beach and the remainder is located on Lake Padre, the canal and Packery Channel. The most expensive condominiums are those with a direct beach frontage. The following table shows average assessed value per condominium by water frontage location TIF Analysis for North Padre ltsiand—Final Papa 7 CRA. Table 5. Average Condominium Assessed Value by Water frontage Type Total Condo Units Average Condo Assessed Value Condos Beach 324 $96,305 Across from the Beach 115 $36,384 Other-Lake Padre, Canal 399 $32,730 Source:Nueces County Appraisal District,Economics Research Associates The following table shows condominium properties by location, acreage, number of units, and average condominium assessed value. Table 6. Condominium Properties in the TIF District Property Name Water Acreage Total Total Total Total Number Avg. Frontage Land Improvements Assessed Taxable of Units Condo Location Value Value Value Value El Con sante Beachfront 3.05 $531,178 $5,317,124 $5,848,302 $5,581,554 69 584,758 Padre Island- Beachfront 4.78 $885,669 $13,272,754 $14,158,423 $13,239,239 130 $108,911 Gulfstream La Casa Del Sol Lake Padre 0.70 $94,134 $889,071 $983,205 5983,205 24 $40,967 Lakeshore Villas Lake Padre 1.26 $153,552 $1,586,544 $1,740,096 $1,459,835 24 572,504 Leeward Isles Lake Padre 2.58 $168,810 $2,761,688 $2,930,498 $2,897,168 87 $33,684 Leeward Cove Lake Padre 0.61 $75,632 $585,521 $661,153 $646,153 16 $41,322 Lorimar Place Canal-2 0.43 S71,650 $303,335 $374,985 5374,985 10 $37,499 blocks from beach Mystic Harbor Packery 0.94 $122,904 $1,185,002 $1,307,906 $1,175,954 32 $40,872 Channel Seahorse Across the 1.03 $78,814 $1,189,358 $1,268,172 $1,017,892 26 $48,776 street from Beach Nautilus Galleria Across the 1.03 $67,502 $1,219,289 $1,286,791 $1,051,791 45 528,595 street from Beach Pirates Crossing& Lake Padre 0.53 $184,591 51,233,405 51,417,996 $1,337,959 36 $39,389 Seascape Villa Portofino Beachfront 2.31 $483,538 $5,372,008 $5,855,546 $5,130,665 53 $110,482 Marines Cay Canal-2 3.51 5539,544 $2,497,196 $3,036,740 $2,261,740 136 522,329 blocks from beach Padre Island- Across the 1.55 $135,036 $1,494,152 $1,629,188 $1,464,188 44 $37,027 Surfside street from Beach Padre Isle-Island Beachfront 3.31 $528,142 54,812,272 55,.340,414 $5,097,429 72 574,172 House Sand Dollar Canal 0.37 548,184 $558,458 $606,642 $366,642 34 517,842 Total 27.99 54,168,880 $44,277,17'7 548,446,057 $44,086,398 838 557,812 Source:Nueces County Appraisal District.,Economics Research Associates TIF Analysis for North Padre Island-Final Page 8 (- RA Beach properties other than condominiums are made up of 31 vacant parcels and one developed parcel which is the Holiday Inn with an assessed value of$4.5 million. There are 12 vacant parcels that range in size from one to approximately seven acres with the largest being 6.98 acres. Most of the remainder parcels are approximately half an acre There are 10 (0.51 acres) parcels that are valued at $56,250 each or an average of $110,294 per acre. These are the most valued parcels on the beach. The next three tables summarize properties by Tax ID. The first table lists all properties on Lake Padre, the second table shows all other(Canal, Packery Channel, non-classified) water front properties that are non-exempt and the last table shows all exempt properties. Table 7. Lake Padre Properties by Tax ID TAX ID Total Land Total Total Total Acreage Value Improvemeats Assessed Taxable Value Value 6180- $1,636,741 $820,671 $2,457,412 $2,444,982 20.85 6185- $1,136,341 $0 $1,136,341 $1,136,341 23.75 6175- 5225,114 $65,880 $290,994 $290,994 5.01 6125- $1,309,302 $52,191 $1,361,493 $1,361,493 286.05 6195- $283,515 SO $283,515 $283,515 135 Total $4,591,013 $938,742 $5,529,755 $5,517,325 470.66 Source:Nueces County Appraisal District,Economics Research Associates Table 8. Other Non-Exempt Water Front Properties TAX ID Total Lad Total Total Total Acreage Legal Description Value Improvements Assessed Taxable Value Value 3730- $152,759 $111,409 $264,168 5264,168 8.05 Island Fairway Estates 4793- $791,199 $276,447 $1,067,646 $1,067,646 6.75 Mariners Cay Lots 6170- $584,752 SO $584,752 $584,752 7.58 PADRE ISLAND SEC B 6205- 5735,000 SO $735,000 $735,000 60 PADRE ISLAND SEC 18 1115- $174,019 $0 $174,019 $174,019 138.86 BRYAN WM SUR 606 LS 64, 129.964 ACS ICL 1717- $79,505 $1,281,980 $1,361,485 $1,229,343 1.00 Compass Townhomes - 13 units Total $2,517,234 $1,669,836 $4,187,070 $4,054,928 222.24 Source:Nueces County Appraisal District,Economics Research Associates TIF Analysis for North Padre Wand—Final Pape 9 Table 9. Exempt Properties TAX ID Name Acreage 111500000010 STATE OF TEXAS 138.87 111500000050 STATE OF TEXAS 4.03 373000030050 FLOUR BLUFF IND SCHOOL DI 6.5 616500451400 CITY OF CORPUS CHRISTI 3.46 619000000005 STATE OF TEXAS 0 625200000010 NUECES CO 20 625200000020 NUECES COUNTY TRUSTEE 30 Total 202.86 Source:Nueces County Appraisal District,Economics Research Associates Growth Rates Using available data, ERA conducted trend analysis for various areas to establish a trend in property growth rates on Padre Island and in the participating jurisdictions. These growth rates are later used in the forecast models to estimate TIF revenue. Padre Island Using micro level data, ERA compiled the assessed values for all properties in North Padre Island from 1992 to 2002. In 1992, total assessed value for properties on Lake Padre and on the beach were high and decreased in the following years. This is the main reason for the negative CAGR for beach properties and the small figure (less than one percent) for Lake Padre properties for the 10-year period. North Padre Island, in total, including waterfront and non-waterfront properties had a CAGR of 9.1%, i.e., properties grew on average 9.1% per year between 1992 and 2002. The following table summarizes growth rates for Padre Island by location of properties. Table 10. Padre Island Growth Rates by Location— 1992-2002 Year Padre Island Waterfront Lake Beach Other Non- (All Properties) Condos Padre Waterfront Waterfront CAGR 1992-2002 9.10% 5.99% 0.77% -3.96% 2.03% 10.19% CAGR 1993-2002 10.14% 7.27% 5.45% -2.30% 2.39% 11.06% Soarer:Nueces County Appraisal District,Economics Research Associates TNF Analysis for North Padre Island—Final Pays 10 111111 TIF Revenue Conclusions The following tables summarize the TIF District's estimated taxable value, grand total tax revenue and the incremental tax revenue from 2001 through 2022. Scenario 1 reflects an overall average annual gowth rate of 9.1% from 2003 through 2012 and an annual growth rate of 3% from 2013 onwards. Scenario 2 reflects annual increase in taxable value of 24% for properties on Lake Padre and other water front properties excluding beach properties. Beach properties, existing condominium properties and properties without water frontage increase 9% in taxable value from 2003 through 2007 and 3% from 2008 onwards. Table 11. Scenario 1. TIF District Taxable Value and Revenue, 2001 —2022 2001-2005 2006-2010 2011-2015 2016-2020 2021-2022 Taxable Value $590,873,474 $909,709,774 $1,300,406,021 $1,523,320,994 $675,226,929 Grand Total Tax Revenue $8,553,266 $11,899,730 $15,964,864 $18,701,553 $8,289,646 Incremental TIF Revenue $2,338,110 $6,251,011 $10,693,770 $13,430,459 $6,181,209 Accumulated TIF Revenue $2,338,110 $8,589,122 $19,282,891 $32,713,350 $38,894,559 Source:.City of Corpus Christi,Nueces County Appraisal District,and Economics Research Associates Table 12. Scenario 2.TIF District Taxable Value and Revenue, 2001 —2022 2001-2005 2006-2010 2011-2015 2016-2020 2021-2022 Taxable Value $601,808,948 $912,635,163 $1,072,871,721 $1,243,752,371 $551,305,402 Grand Total Tax Revenue $8,711,564 $11,971,610 $13,171,464 $15,269,336 $6,768,283 Incremetrtal TIF Revenue $2,496,408 $6,322,891 $7,900,370 $9,998,242 $4,659,845 Accumulated TIF Revenue $2,496,408 $8,819,299 $16,719,669 $26,717,912 $31,377,757 Source:City of Corpus Christi,Nueces County Appraisal District,and Economics Research Associates TIF Analysis for North Padre blond—Final Papa 11 A The following exhibit shows the growth in the TIF revenue from both scenarios. Exhibit 1.TIF Revenue Schedule, Scenarios 1 and 2 r,a.. -- - - - i kilts, - -",t2;*,::, z .t.M MN Iy, �.r 6i,M2 11.201 /Pr 11!66 2601 2662 2612 211164 2111115 Zai 2017 2666 20b 2218 2011 21112 7113 2114 2013 2616 2617 2111 2111 1020 2621 2022 TIE Analysis fur North Padre Island—Final Page 12 ECM The following table shows taxable values, grand tax revenue and incremental TIF revenue from the two scenarios in thousands of dollars. Table 13.TIF Taxable Value and Tax Revenue Schedule, Scenarios 1 and 2- 2001-2022 ($00Os) YEAR TAXABALE VALUE GRAND TAX TIF REVENUE REVENUE Scenario 1 Scenario 2 Scenario 1 Scenario 2 Scenario 1 Scenario 2 2001 $98,514 $98,514 $1,426 $1,426 $183 $183 2002 $107,589 $107,589 $1,557 $1,557 $314 $314 2003 $117,376 $118,803 $1,699 $1,720 $456 $477 2004 $127,940 $131,379 $1,852 $1,902 $609 $659 2005 $139,455 $145,524 $2,019 $2,107 $776 $864 2006 $152,006 $161,483 $2,134 $2,267 $928 $1,061 2007 $165,686 $179,546 $2,253 $2,441 $1,085 $1,274 2008 $180,598 $184,932 $2,376 $2,433 $1,246 $1,303 2009 $196,852 $190,480 $2,503 $2,422 $1,411 $1,330 2010 $214,568 $196,194 $2,634 $2,409 $1,580 $1,354 2011 $233,880 $202,080 $2,871 $2,481 $1,817 $1,427 2012 $254,929 $208,143 $3,130 $2,555 $2,075 $1,501 2013 $262,577 $214,387 $3,224 $2,632 $2,169 $1,578 2014 $270,454 $220,819 $3,320 $2,711 $2,266 $1,657 2015 $278,567 $227,443 $3,420 $2,792 $2,366 $1,738 2016 $286,924 $234,266 $3,523 $2,876 $2,468 $1,822 2017 $295,532 $241,294 $3,628 $2,962 $2,574 $1,908 2018 $304,398 $248,533 $3,737 $3,051 $2,683 $1,997 2019 $313,530 $255,989 $3,849 $3,143 $2,795 $2,089 2020 $322,936 $263,669 $3,965 $3,237 $2,910 $2,183 2021 $332,624 $271,579 $4,084 $3,334 $3,029 $2,280 2022 $342,603 $279,726 $4,206 $3,434 $3,152 $2,380 TOTAL $63,409 $55,892 $4,999,537 $4,382,374 538,895 $31,378 Source:City of Corpus Christi,Nueces County Appraisal District,and Economics Research Associates TIF Analysis for North Padre blend-Final Page 13 Reinvestment Zone Number Two City of Corpus Christi, Tears EXHIBIT B Map: Existing Uses and Conditions in the Zone i- s__7------------Si '-/ .c iii? ciii7 Nuece' aunty padre Island '_ -�'•�'�°•'�'' �°�°�� r/f '_ :• ,N1111 ,I,,,�I.,,•;•4,,,♦., Tax Incremen , .. .. . .�'-=� �; /11,1,1:::.:....:...,,:;,;14 '•:,;, .1•l. ......-:a .,111111. 1j1,,•., 14:I,, •.....� - ra Financing Di% rict (TI ' EAJ f•�I r1�11 �+ . r AIll kyt,,, 4,,11.. iI �•Q 41114''1/,I�f 1, ,V/ v. ,,, 44 ...IIj�:f c hiq,`y b ♦ ♦ 7 , ...,..,...„,.......,:patu.„.:,; .lIII1/lp I I .•• :•1/„4,4,4 :•:1 �'/ J• 11111111.111111111 1141 ,l ,a IJ„NI1f i i �► M1111111 �`lu' r„:7%.;,,,,,,,-(sail iiiiiin%:^ -q,: ,11111111111 4,,,4,1,,,,,,, ••IINin 1i::::fa ►r �_. fIN1111111= I 4 I/I 2•111111 T.: 44/144 •. ,11111111 11.1.13 „lll .�jhJl,1:'j 4 4♦4444,♦/Cl► INiitiiliu.'.n/ 4 ,j, /..{` ``4,,,,.. 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Belli .,%Ails Vtilet 'o•.:=:=,•o�=:'; ��''.�y Co. ty Park 2 I,,,1,.,::N ri..,:,, - LEGEND ���, ,4 ./ \,,,qpl All \:..:.1;,4:,:: ``' `"•.",'1r 7' TIF-�4rea (tosa► acreage 1430.08) ,1 /1/J'•7, �, 4�'•,N 1. 144,,ph ,4: 1. ''4'h/1 - - - - Corpus Christi City Limit Line 10� 2000 S8 Hi /�;® Scale In Feet 4,.'/•, ",' . .i — — — — TIF Area Boundary Line © Copyright 1989-2001 City of Corpus Christi \....,... NU 15MAR01 City Of Corpus Christi, Planning Department Reinvestment Zone Number Two City of Corpus Christi, Texas EXHIBIT C Map: Proposed Lnprovements and Proposed Uses of Real Property in the Zone Padre Island Tax Increment Finance District lir . .. .:..7.tlor..: t �< .rai \ I. it is IA 41#4.4frep No iti .•, .. , '\ 1) ' *r!J* ,f 17 j...:� r, ( I J " • )- �F`st". . -��1__--..! _.1 Legend ' k �l ):. I 5•, ::: 9 IF er..lrm .ry y I Orma. .avRwWri•1 AU••r'Gndor I Proforma., o ww.I w.. ,Pr. ,1 pM induaiul Lr►0•n•Ay Rand•M.&'Mowry nat.., N W 1*4E alj S • /Source: Department of Development Services MON 2/12/03 Reinvestment Zone Number Two City of Corpus Christi, Texas EXHIBIT D Project Costs and Estimated Cosh Flows 2 ! NW 01-qi , ilil S1 aiii *jqJ1fflUf '4IHqV 11 : 1 WHIP Ig - 01111 6 ilt1 a cr ita .L 1 §rf Q k a lilt 2 1 Rale 3 HI III Il _ LIII di E {J _. ACNP - N + N - t0 N -. N -. i 11 fC d� �/ N + OD '1 W t m .UiJMW - . + N N N -. W gQSSg12 pgg %2 QE2 � o Ng44 i p8ppppg § 8iipO § EvOOW ; OpiO1NO N N N J PDOD O � O -. + D m m Y. m n OI ElNN W WW W_ 11 N AN i i . . . . . . . . . . . . . . . . . . Reinvestment Zone Number Two City of Corpus Christi,Texas Rockery Channel Bond fund Assumptions: Bonds Issued: CoE-50.0 million maintenance S.r 2033•Mar 03 2,500,000 Tax Increment ease. 83018,076 Crty Mart Ras ham Bonds 1,400,000 Ser 2034-Jan 04 4,30Q030 200TrdMl Appraised Valu.. 107580,762 OLO Grant 1,275,030 Sec 2005-Jan 05 4,330,000 2002 Net Appraised Value. 102,440,534 Muntsnence annual Ina. 200% 11,130,000 Almost Income: 1.85% Required end Fund Balance 3,000,000 Bond I ersW rasa7.50% Fledged Revenues Debt Service Funds Beginning Captured Value Bond Fund TIF Bnding Available for FYI Tax Bond Fund Zone Real Projected TW Interest Fees& Annual Cosh Bond Fund Melntertance 7131 Year Balance Property(a) Revenue(b) Buntings Series 2003 Series 2004 Series 2005 Total Expenses(c) Flow Balance Dredging 2002 2001 10,936,710 61,188 2003 2002 61,188 19,422,458 181,974 1,13215,000 168,108 229,274 2004 2003 229,274 32,933,000 477,000 4,242 194,792 - 194,792 15,000 271,450 500,724 2005 2004 500,724 45,509,000 869,000 9,263 187,500 378,250 - 563,750 15,000 89,513 590,237 2006 2005 590,237 59,864,000 864,000 10,919 187,500 322500 378,875 888,875 15,000 (28,958) 561,281 - 2007 2006 581,281 75,613,000 1,061,000 10,384 187,500 322,500 324,750 834,760 15,000 221,834 782,915 - 2008 2007 782,915 93,676,000 1,274,000 14,484 187,500 322,500 324,750 834,750 15,000 438,734 1,221,840 - 2009 2008 1,221,649 99,062,000 1,303,000 22,601 187,500 322,500 324,750 834,750 15,000 475,861 1,697,499 - 2010 2009 1,897,499 104,610,000 1,330,000 31,404 187,500 322,500 324,750 834,750 15,000 511,664 2,209,153 - 2011 2010 2,209,153 110,324,000 1,354,000 40,888 187,500 322,500 324,750 834,750 15,000 545,119 2,754,272 - 2012 2011 2,754,272 116,210,000 1,427,000 50,954 187,500 322500 324,750 834,760 15,000 828,204 3,000,000 382,477 2013 2012 3,000,000 122273,000 1,501,000 55,500 283,750 418,750 449,875 1,152,375 15,000 389,125 3,000,000 389,125 2014 2013 3,000,000 128,517,000 1,578,000 56,500 276,250 507,500 411,250 1,196,000 15,000 423,500 3,000,000 423,500 2015 2014 3,000,000 134,949,000 1,867,000 56,500 268,750 492,500 500,000 1,281,250 15,000 436,250 3,000,000 436,250 2018 2015 3,000,000 141,673,000 1,738,000 55,500 357,500 573,750 486,000 1,418,250 15,000 362,250 3,000,000 362,260 2017 2018 3,000,000 148,398,000 1,822,000 56,500 342,500 561,250 586,250 1,460,000 15,000 402,500 3,000,000 402,500 2018 2017 3,000,000 155,424,000 1,908,000 55,500 327,500 625,000 640,000 1,592,500 15,000 356,000 3,000,000 358,000 2019 2018 3,000,000 182,863,000 1,997,000 55,500 312,500 595,000 810,000 1,517,500 15,000 520,000 3,000,000 520,000 2020 2019 3,000,000 170,119,000 2,069,000 55,500 393,750 881,250 876,250 1,731,250 15,000 398,250 3,000,000 398,250 2021 2020 3,000,000 177,799,000 2,183,000 56,500 371,250 720,000 736,000 1,826,250 15,000 397,260 3,000,000 397,250 2022 20221 3,000,000 185,709,010 2,280,000 55,500 445,000 875,000 788,250 1.908,250 15,000 414,250 3,000,000 414,250 2023 2022 3,000,000 193,858,000 2,380,000 56,500 416,000 726,250 830.000 1.971,250 15,000 449,250 3,000,000 449,250 31,083,974 806,751 5,488,542 9,180,000 9,017,250 23,885,792 315,000 4,931,102 (a)Ta years 2001&2002•Nat Appraised Value lees Baa.Value. NI other years-ERA August 2002 report•Scenario 2,lorscnted Tote Appraised Values Ili ERA Bees Valu.. (b)Source FY 2003•Adopted budget FY 2004 through FY 2023•ERA August 2002 report-Sooner°2. (c)Trustee/Paying Agent tees of 55,000 end T1R2 Administrative Btpsnee.d 510,000 annually. Reinveshnent Zone Number Two City of Corpus Christi,Texas Packery Channel Maintenance Dredging Costs Assumptions: Required Bnd Fund Balance 3,000,000 City Mint Res from Bonds 1,400,000 Starting Maintenance Expense 350,000 Maintenance annual incr 2.00% Interest income: 1.85% Resources Available for Maintenance Dredging Start-up and Total Maintenance Maintenance Maintenance Available Ending FYE Tax Beginning Transfer from Interest Reserve from Total Dredging Less Balance After 7f31 Year Balance Bond Fund laming, Bonds Available Expense Expenses City Advance City Advance 2002 2001 0 0 0 0 2003 2002 0 0 0 0 0 232,747 (232,747) 232,747 0 2004 2003 0 0 0 0 0 0 0 0 2005 2004 0 0 0 1,400,000 1,400,000 0 1,400,000 0 1,400,000 2006 2006 1,400,000 0 25,900 1,425,900 0 1,425,900 0 1,425,900 2007 2006 1,425,900 0 25,379 1,452,279 0 1,452,279 0 1,452,279 2006 2007 1,452,279 0 28,887 1,479,148 350,000 1,129,146 0 1,129,146 2009 2006 1,129,146 0 20,889 1,150,036 357,000 793,036 0 793,036 2010 2009 793,036 0 14,871 807,707 364,140 443,587 0 443,567 2011 2010 443,567 0 5,206 451,773 371,423 80,350 0 80,360 2012 2011 60,350 382,477 1,486 484,313 378,851 55,462 0 85,462 2013 2012 65,482 389,125 1,581 478,168 386,428 89,739 0 89,739 2014 2013 89,739 423,500 1,660 514,900 394,157 120,743 0 120,743 2015 2014 120,743 436,250 2,234 569,226 402,040 157,186 0 157,188 2016 2015 157,186 382,250 2,908 522,344 410,081 112,264 0 112,264 2017 2016 112,264 402,500 2,077 616,840 418,282 98,558 0 98,568 2018 2017 96,558 356,000 1,823 456.381 426,648 29,733 0 29,733 2019 2018 29,733 520,000 560 550,283 435,181 115,102 0 115,102 2020 2019 115,102 396,250 2,129 515,482 443,886 71,597 0 71,597 2021 2020 71,597 397,250 1,325 470,172 452,782 17,409 0 17,409 2022 2021 17,409 414,250 322 431,981 461,818 (29,836) 29,836 0 2023 2022 0 449,250 0 449,250 471,054 (21,804) 21,804 0 4,931,102 141,008 1,400,000 6,758,497 284,387 Padre Island Tax Increment Finance District Co. Park uby Park C. Whitecap Blvd to of Texas 0 Beach Access RD 4 To d Legend Parcels TIF Area Padre Balli County Park 0 0.1 025 as Miles MDN 2/20/03 Source: Department of Development Services CITY OF CORPUS CHRISTI, TEXAS TIRZ # 2 's .*' P. ; . --), AO -"'-' -- 1---- c-/4 ,/- ww /A* / - o' A r/i .,:,-, r + Af-irzfr ktrit IlA v.. 04 0,/ , A', • �re '�� �� .; 1---- 4 .1 ;" ligiliet#:. ', .•1 , fi/--"' -r- - 4 41,.v -r -7 / ..cif i ' -.*. _ . , , -5,,r, , ,' / /i4;,.., moi. %j y' I� 4 �,r�. ,• - . , E. /- Aim .Y4i s il , ,. „so. lo i .,/,-;z:, ,/ , .d , - . ,...., ,.. . v.. . .• , It:400p Al,,,, #42,47.•,., . • i,.,•i i T:4,' ;/14,rfr,.;, N te4111•101"Ili V -.-- i i �� bi �.�A11%/, W AO&&==7 P°WI.2 L.' . . .; ', A i Aff, E " " ' n„:;: I r r .1 / S 0,27- FA . . ;d,, / : \\ --''., ; 7107—Ifit r ; ' -:2-_____..) lii,, -,V I , .._ . 0 It — - .i.1,4..> .- 4' 1 • ,„‘„,, c'T ---- - . .:. * ,„.,,./ , u . „,,,,,,:::74/ kyr 7• ,./." .: l'``‘-p.s. o Legend 9 V/i/I TIRZ#2 0 1,500 3,000 6,000 Printing Date:8/26/2009 Feet File:H:\PLN-DIR\SHARED\GIS Projects\Legal\TIRZ2\tirz2.mxd Prepared By MikeN ©City of Corpus Christi,Texas CITY OF CORPUS CHRISTI, TEXAS TIRZ #2 Current Land Use 7 .....ie-- . „....441, „ „,. / co / 4.4., _ _ ..� �• cb I " 1 ,,, / f. 2 / / -, / / / I• , , _ /0" , `-- :4 : i ' "... .".7 '....L/ 41111041,- ' ,,(' tr.' ,,,,,71. r _ , WHIT: AP - "' oI VI. �{ !, PJ / / / 4 \ �,. f -_ -� / //A / /// / m - K I//I r ✓,/, / /' ' J _ /1\� „,---47,--.7 . • Fy”,.e 4 j/ t_ Legend / a Q TIRZ#2 Drainage Corridor Professional Office / Current Land Use Park l Commercial / Q / Vacant Low Density Residential Public-Semi Public.PSP CL,Water '///Medium Density Residential Light Industnal Natural Area High Density Residentlal MO Heavy Industrial / Wetland Mobile Home / / / / / / / / / / / / / / / / / 0 1,450 2,900 5,800 Printing Date:8/26/2009 Feet File:H:\PLN-DIR\SHARED\GIS Projects\Legal\TIRZ2\clu mxd Prepared By:MikeN ©City of Corpus Christi,Texas CITY OF CORPUS CHRISTI, TEXAS TIRZ #2 Zoning er, B-4 1 II, B-2A / R-113/10 , F-R �Co R-2 F-R/IO AT B-2A/I07SP/9r7-09 • 1-R f ,.. , --, , • R-1 B e B-2A/10/S/96-12 i A-2 AT/PUD-2 I ' - ; 4 . AT/10 4 J er'N .Nure Al R1-1B/PUD-2 UD2 / A /R-113/10 AT/10 A /I0 R-,18 Aill/10 B-2/10 ' / Bt2A/10 N R71'B/PUD-1/10 Be210 WHIT: AB 2A/IO A 4 W'14 E / A-1/10 B-2/I0 o B-2A S cA-2 =- B-2A/10/SP/98-08 ) 0 . R-2 F-R/IO k a, B-2A/IO/SP/96-06 �� Legend Q. �� TIRZ#2 R-1 B/SP/01-11 AT/IO Zoning AT/SP/01-11 AT 0 1,350 2,700 5.400 Printing Date 8/26/2009 Feet File.H:\PLN-DIR\SHARED\GIS Projects\Legal\TIRZ2\zoning mxd Prepared By MikeN ©City of Corpus Chnsti.Texas CITY OF CORPUS CHRISTI, TEXAS TIRZ #2 Future Land Use .//fi,/#7, Ele.... ;--,,,t_. / I I -/ / / -� �- -- --- / / / / / / .J — / .——( ' '-_::-.= --.i _/ 407". /, _ - .i., = G �WHIT: AP , - = s ' !� :, , / = -- / //// / , r - / / , -��� _ A _ 1.:*,!9.6.'\';,,..p..' '. , / /. . . Q l / -, - ` hi' / /1 Legend , TIRZ#2 Drainage Corridor 77' Commercial w. Future Land Use Park +Research/Business Park Conservation/Preservation Estate Residential =Tourism mnwr _ Water Low Density Residential Public-Semi Public AkrIMI Natural Area //'/Medium Density Residential Light Industrial ., Wetland ,High Density Residential -Heavy Industnal Vacant Mobile Home AR Professional Office 0 1,375 2,750 5.500 Printing Date:8/26/2009 Feet File:H:\PLN-DIR\SHARED\GIS Projects\Legal\TIRZ2\flu.mxd Prepared By:MikeN ©City of Corpus Christi.Texas NOT TO SCALE .. lt •:•7.., , .- AI,r,:.'• I *' ., . - •F --..-. •-.. :•-•• ' -•44., • ; i 1.1' %..,. , ... . '-..' • 4111011101.11 ..: , ,•, ..-r• // , A : , :: ..: f: ... N., . r .. . . _ . . • / J.' C -''" „,, !.4 ;;;-:. . . ... 4. . . , .•,.7::'' t.l' ' ' -. - , ..."' 1 (.' .. - ;.' • 'IL _ • . _, . . 4.• • , IF .. 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';1 •: d', --• i- ' , • PHASE 1 -SEAWALL PARKING LOT RESTROOMS MN PHASE 2 - PACKERY CHANNEL PARKING & OVERLOOKS (NORTH & SOUTH SIDES) - .46,p-Nori.i ;14,- _'----;':`,...: ' PHASE 3-PACKERY CHANNEL RESTROOMS --,,,,,, g_.4.7,i..1 - (NORTH &SOUTH SIDES) PHASE 4-ADA RAMPS TO JETTIES ../ 7: 4,. , . / 12 ..,r7d . . • .. , -..' I • .- / :, .MIIIIIii '' 4) , (NORTH &SOUTH SIDES) — PHASE 5-PACKERY CHANNEL PAVILION (NORTHSIDE) PHASE 6 -ADMINISTRATION & MAINTENANCE BUILDING - -: - '-., . ..'' '7 PHASE 7 -ADA PARKING LOT IMPROVEMENTS AT / lit, , , . . :::i yr,,-.44- JETTIE RAMPS EXHIBIT F - - -1. CITY COUNCIL EXHIBIT PACKERY CI-IANNEL CITY OF CORPUS CHRISTI, TEXAS SIX PACK DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 PROJECT LOCATION MAPIM=1, 1111M. DATE: 10/08/2013 — — .............. • y + ti i„. . LL Mobi-Mats r ` * x �� r • i ' t+ ' I 1 ".' — ,, • I • ,j 5 • iII f.F.. 44.411Lftni" ."4".ir. - " • E „ 1 . rz , .., . It., ur . , 111 u . i . . . 'a r S cc ss � 6'a . it , ' r,` ,u. : h. itT / .c t ti� St Au usln/ Dr 1 AtifiF 4.t ) -......I t.,$0( I, .... ,,,� Windward @ St. Augustine Crosswalk L. . { , ,ice ! 44 Roti/ /f f ifs # -� :. I '..40 ti : r -.4 i f # mss.. r- 1 / r o ieca BIN 7 ler'7 — t , Vit DJ may ., \ 2 , „,,,4.,,, \ ,....... , l_17......0%...\\\\\'w, \ Xv , , . _,-- , ” . ....___Jill_ �--�\\A \-0' ic\- \\J,\ �.(' / - ,\ - '/- GLO LEASE TRACT 1 Me Vk\ h("' -.-'''...;:.10' \ 7 S4 * , : ----+% X \ ._. , v-,c----#.4,:b- - Er...Ed .. \ / \` � i %IP- \ �\ �- t-__ m :P GLO LEASE TRACT 2 l / A ii n z, ..., A, w. -_..,.- ; fF N MJ �� , 1------L ' `�. .�11�I "� ' ` �` j , l resat , ;� v I I -7 \,...1,.„. ,4.....:, _ r 1 _. — stoli3€' me mn.o0 a WEAK o. TRACT 2 -,--,--,--,-,-,-.-,--.--r--.--,-,-1,-,-.-,--,-,--,-, .. ...1301 NOM wm ,�-,-1 r,- .T. �--•-1,-T -13-,-13-,T .1......"2,17 ar vvv \ .,. MI110.110( NOMA WKS onara) MT 000MIN I.IS ACT 10 A'LOW 1911 01011401.M•11.7.OR IOW RIMEL 1 _ � • ", � I GLO LEASE TRACT 5 11 NORTH PADRE ISLAND STORM DAMAGE GLO LEASE TRACT 4— - - - - ;' o REDUCTION AND ENVIRONMENTAL W at MNr RESTORATION PROJECT PACKERY CHANNEL IPUBLIC & ENVIRONMENTAL FACILITIES IPLAN : NORTH AND SOUTH ACCESS TO PACKERY SCALE : 1" = 400' LLL\J I, 2OOZ CITY OF CORPUS CHRISTI CITY PROJECT N0 JAN ENGINEERING SERVICES DEPARTMENT 5122 REV.1 ATTACHMENT No.2 shoot 1 of 6 I I IL 1 fI w�' �1 ,i , . ,-,....-,i, ,:, i i i —,: 1 � iI T ,hI I,_ 11 AFT/I f� ��, N% ' �r'31111 MO „ ;a I /// ' � pill ,`'\ t ' l�' -Aw \\7� la.__-•- • 4- L ,'• r * I ` , ,,,70,46;,-� � J OLD LEASE TRACT 2 L/I i. Pow / � /� '���'” t .--. .-,.J J'-•'(Fi��z -_ sF��` IP� SUBLEASE AREA XNMI.. _ -'..e... 1)�' . r 111 __. " _ - ,.,. / r LEASE TRACT 3 ,,-,,,,>:. ., „-,,-, . _ , , ' //I t?ii tiv n , r Ia Itiry /.1. j NNS:---‘...7''---'"...' -- . _ .1_ ' sill , II / 11__ „.,.,,r: r I ,L, !IV/ft/ K --- /;7',//,, -r �i }' AP, ,' ,, - NORTH PADRE ISLAND STORM DAMAGE T 1 1 , �J � REDUCTION AND ENVIRONMENTAL __ dI II +� SII' I RESTORATION PROJECT PACKERY CHANNEL TT7�/ /7r lI _I , _ , M.r 'm PUBLIC & ENVIRONMENTAL FACILITIES \ �I I I 1 1 TI I I T I " ! 1 , 'Ili' " III j 1 I D. I ,°°r OVERALL PLAN - REACH 1 AM 1.15116.10Ii.MIDORG.OR IOW IWO= SCALE : 1- = 300' CITY OF CORPUS CHRISTI CITY PROJECT NO. NOV. 7, 2001 ENGINEERING SERVICES DEPARTMENT 5122 ATTACHMENT No.2 Shoot 2 of 6 III PROPOSED I ERSECTION O II IMPROV ENTS IiI r PROPOSED ROAD AND m 0 2 Ih ill �20 \ INTERSECTS IMPROVEMENTS r — _— g Q \\ ZAHN ROAD .- o Z N ,,.:...- '�4.M!lAc.aF" el tl4Mi'. lakNa!Y.V*-•"nxn�'-1..� I — O —_ W I W. " PROPOSED WAY �'------ _ _ W I G- • _ ROAD TDID /./ CLO LEASE TRACT 2 1. b • 1 \ ``1D' \ 9 ��i• s5f9 \'/ W a dic p> Oq �tf,ayD69 4` o0 Zr � so It . O pyV p� A� oO'FW- P �1 CY 'o` 1 \ lam 9�A O l01 P B pP.T. O �� { OQ� Pl �‘ N. p�Y�•p � 0C'A6 1 < I O 4'' 5 X,I I QOa. C.1/ , 0-:090° \ i,c,..I.i...,0 J., 1.-. 1 ( t/,‘ \ 4/ '� s,l.I ji. / / "0. 1111".• - r7/y� Ar. ! PR 320 EO ES .+I'' -- , �'/ •' t"--1-.1 .4r<- ae, . SPIE- .d -v,- 90-"Y- / / aQ . Lt .A. , ,� ,/ / A 8 ;Ir„/ 0011011111111. , ��.. / N. ~ t\ NORTH PADRE ISLAND STORM DAMAGE i/e 4.7 �, 'o \_______- � REDUCTION AND ENVIRONMENTAL •o © A.,,--, RESTORATION PROJECT N AY Dr MVOS(a MOW Of PACKERY CHANNEL . •. �' • o -,�/.. w 0.nOMMOI'2130' PUBLIC & ENVIRONMENTAL FACILITIES to ./A 6r U m' 64 •a , '� "n» "Olt �MONT IMAM PLAN VIEW 8'. ins •----)- SCALE : 1” 100' CITY OF CORPUS CHRISTI CITY PROJECT - DEC. 13, 2001 ENGINEERING SERVICES DEPARTMENT NO.5122 REV.1 ATTACHMENT No.2 shoot 3 of I O o • ,1f7s8,1@t a - - C _ ,, , 5p'4s•20' 1 r- r E O� opo i. .111 4I_ S 7 N/ 11 ..a91B i 770 D0 - \- _ 1 L),„ ERODbVG - _ 11 �L AR '" ` I n Woo-476*WD "UNE"a RY 7 �• ' T L '1� -_.. oT 1111 L; C ___ o - IL--r..... �r� PROTE oN<NE�, 111 Ii tj m o o 70,y f0_", , Z 0Ariok 1 / N A O 1 1 , c, A N /'� _-t STA I7_+95-65� FT'rr16 R y7 r r. L S� 774 64 -_ - \":E.cETAnom VEGETATION UNf f 1 'I LINE/j -.. F 1700 1 N 4 L `� OWv. LEASE TRACT 2 I I I 1 l 1 1 1 -' I EOC AR / li I _� f00 �BOUN.RY �4CE7k7'iON UNE - _ MiN � r • ST I L / _ _ PARKING14p IaAnDN/ - _ PROP SED PACES LTNE# / r / N 0 180 00 1 4 o L / 1I 1 F- MIN, 4 7 / 1 1 _ ARK�N l P=ED PACES I O I — — 1 NORTH PADRE ISLAND STORM DAMAGE REDUCTION AND ENVIRONMENTAL I RESTORATION PROJECT 1ao PACKERY CHANNEL I MS 006118011 6 1,411 PUBLIC & ENVIRONMENTAL FACILITIES I r a BEACH PARKING NORTH 8c SOUTH OF JETTIES RiffI SCALE : 1- = 100' I CITY OF CORPUS CHRISTI cm PROJECT DEC. 13, 2001 ENGINEERING SERVICES DEPARTMENT NO.5122 REV.1 ATTACHMENT No.2 shoot 4 of 6 OVi� , oA a iz x � --- o I )!` oocoR � NTS • iw Ua pI \ ------------..- ,...., kij : W �z �a p PAVILLION el O \ 1 I rte ' « RAMP - -STNRS .__..81.4___.__..81.4_____I_ — 4J_ : - -__ L- roJ -�-..__LT _ I J LA_ L _L______—_ _L J L_I,6,___d_.�� � � � — —f� - - - g1_ 1 L -�___4 / P. '^i i+ n m 0m a I +I Ir `I ^ I 1 L, / GI --I- ---- _ - - - -- . / - I cow.mu( + AMP - _ 1--- - - ----t o • T o • I a. I e W / r y GI / . GLEASE TRACT] - - - - - - - - - w I Ud - O Cl)Q NORTH PADRE ISLAND STORM DAMAGE V- REDUCTION AND ENVIRONMENTAL Z O RESTORATION PROJECT Ya GLO EASE TNACT2 0 „s,�,,,,,, EISE,p, PACKERY CHANNEL .a »mn: PUBLIC & ENVIRONMENTAL FACILITIES a / 4 ,2001 �. / CD a '.,o., BEACH PARKING NORTH & SOUTH OF JETTIES P10.7 MAME. SCALE: 1" - 100' CITY OF CORPUS CHRISTI CITY PROJECT VENDOR KIOSK AREAS I NOV. 7, 2001 ENGINEERING SERVICES DEPARTMENT NO.5122 REV.1 ATTACHMENT No.2 Moot 5 of 6/ .11 go NORTH SIDE .MOUND SOUTH SIDE -I F T I I . j 1" ri-MOP.Ill r , 414.1,14.75 rI I i I [I LA_ 1 _I L. 11 1 _L_ _I li. L I J L _L I L 1_ I L _I 1Ltrz, 1 _...,...;,,,D. 1025. I : I I 4_ L : 4, i NOM 4442[4.4•04.:146,-,..,..i J. i 0,4155',.. 4,, ,,,,,EL.1425. .., _I ./exeize,vr, i 1 — h- + -I r + ---t r- i ---i 1 i- + --1 , ---H0 i i 1 I I I I I I I I I cam.cRouft:.-I 1 ..., 1 I I 1 h 1 PRoe evuos-4, I IF"2 i I 1 Ir I I I 1 I, 4 :TA. I. I 1 F , I k 1,-14.2r__ N._ __I-10 I I I I I i I ; I 1 I I ra i i i I t t t" i ,. J 2 ! 2„. 8 1 L -1°— ,-. 164+00 ; t t, : . SEE DETAIL BELOW 111 OVERLOOK 270' 1 130 140' EL=6.55' 1 L 33' 64' 25 8' cr i.4., PROP. FILL ..--. ,---, PARKING AREA 10 INLET SIDEWALK L'jd 10 1 --1 OUTFALL LA-11 EXISTING GROUND STRUCTURE 3 . -a--, -,— — EL=5.25' I 1 \\.\\-. r BULKHEAD c_.> .\\ 2 ,'., ,-.*\ .. \ N. 1 r-1 . _,... , cr -1 , - EL =–1,75 ' 1-1-21 , (....) MINOR BULKHEAD WATER EXCHANGE'PIPE 1 I_ PROP. CHANNEL 0 –10 EXIST. GROUND , , 3 —14.25— EL =-14.75' I T –20 HORZ. SCALE 1" 10' VERT. SCALE 1" 5' c, 1 64 ] C)u + + ± cc±)) ,Th , — c=, NORTH PADRE ISLAND STORM DAMAGE REDUCTION AND ENVIRONMENTAL RESTORATION PROJECT MO MUMS•MAW RA PACKERY CHANNEL NC ANN414 01M40/MO MYR NC Al4/014,Or /MPUBLIC & ENVIRONMENTAL FACILITIES g 4 OMSK OS 111111 ON IONIMR 7.1,01 nTYPICAL CROSS—SECTION o warm.ma'lo at to Rat 0111•1•1•91011,MIMI PI NORTH PARKING LOT NEXT TO BULKHEAD Mar MOM= CITY OF CORPUS CHRISTI CITY PROJECT NOV. 7, 2001 ENGINEERING SERVICES DEPARTMENT NO.5122 ATTACHMENT No.2 Shoot 6 of 6 PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE#2 CITY OF CORPUS CHRISTI RECOMMENDATIONS FOR APPROVAL JUNE 10, 2019 PROJECT EXPENSES PROJECT PROJECT BUDGET TO DATE STATUS 1 Packery Channel South Parking Lot Improvements This project consisted of the demolition of existing facilities, construction of approximately 11,500 square yards of new flexible pavement, parking lot, two concrete Completed driveways, minor water and wastewater improvements, landscaping improvements, $640,447 March 2006 lighting improvements,and concrete pedestrian ramp. Projects Include: Packery Channel Monitoring FY 2008-2009 Complete Packery Channel Monitoring FY 2009-2010 Complete Packery Channel Monitoring FY 2010-2011 Complete 2 Packery Channel South Parking Lot,Landscaping Phase 2 This project consisted landscaping and irrigation improvements to the newly constructed Completed 300-space parking area including the construction of new planting islands with mexican $145,461 March 2008 fan palms,sea grape trees,decorative rock and irrigation. 3 Packery Channel Boat Ramp Parking Lot/Access Road This project consisted of the construction of approximately 17,000 square yards of HMAC flexible pavement parking facility adjacent to the existing Packery Channel Boat $1,053,176 total Ramp; construction of an access road and related signage and pavement markings, project cost. Completed and the installation of 1,000 square yards concrete reinforced pavement adjacent to $549,216 from July 2009 boat ramp, concrete bollards; minor drainage improvements; 3,500 linear feet of TIRZ#2 electrical conduits;and minor landscaping. 4 Packery Channel Boat Ramp Dredging This project consisted of dredging approximately 17,800 cy of the Packery Channel Boat Ramp and adjacent area. The work included environmental control measures to Completed prevent erosion and allow for discharge of water from the dredging operations to $431,377 discharge into the surf of the Gulf of Mexico. Minor amount of stone were installed at April 2010 the boat ramp to enhance shoreline protection. 5 Packery Channel South Parking Lot Restroom(Phase 1) This project included the construction of restroom facilities at the South Parking Lot at the beach Completed seawall on Windward Drive. The project included separate men and women facilities to with $460,743 July 2010 showers.toilets,changing stations,outdoor seating area,and native landscaping. 6 Packery Channel Parking Lot and Overlooks(Phase 2) This project consisted of improvements along the north and south sides of Packery Channel including seven overlook structures, parking lot, access road, pedestrian walkways, storm water $2,869,224 Completed structures lighted bollards with electrical receptacles,lighting, landscaping,concrete benches andMarch 2012 repairs to shoreline structures. 7 Packery Channel Aids to Navigation/Signage This project consisted of lighting improvements to Packery Channel as required for safety and Completed security along with signage to mark no wake zones.Per ISAC,additional funds needed to replace $64,500 December 2012 signs following Hurricane Harvey. 7a Packery Channel Aids to Navigation/Signage-Hurricane Harvey Repairs Per!SAC,additional funds needed to replace signs completed in Project 7 following Hurricane Revised 2/20/18 Completed Harvey. $65,000 $7'166 April2019 page 1 of 3 6/3/2019 PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE#2 CITY OF CORPUS CHRISTI RECOMMENDATIONS FOR APPROVAL JUNE 10, 2019 PROJECT EXPENSES PROJECT PROJECT BUDGET TO DATE STATUS 8 Packery Channel Restroom Facilities(Phase 3) This project consists of the purchase and installation of a mobile restroom on the north side of the Packery Channel and adjacent parking lot. The project also includes turn-around and connector Solar Powered to Zahn Road. A mobile trailor restroom on the south side of Packery Channel with wastewater lift Units:Complete. station and wastewater 2-inch force main (approximately 2,500 linear feet long) is also being planned. Priority Item.P&R recommends self contained,solar powered mobile units to be placed Revised 2/13/2018 $402,000 Showers: Partial at Packery Channel Parking Lot,end of Zahn Road and on South side of PC(at a location yet to $412,000 Water line installed be determined) Build and Install portable restroom shelters to hold portable restroom units at various locations. Build and Install Portable Shower units on the North and South side of Packery Spring'18.Waiting Channel. Board approval of 4 portable restroom facilities at$65,000 each plus 20%contingency on BCC permit. and shower facilities at$100,000 total. 9 Packery Channel Ramps to Jetties(Phase 4) This project includes ADA beach access on the north side and the south side or the channel to provide access from the beach to the restroom,lookouts and parking lots. This project will include the ADA approved mobi-mats on the north side and the south side of Packery Channel to provide Revised 2/20/18 access from the beach to the restrooms,lookouts and parking lots. This project was designed as $35,000 $8,979 Complete part of the Phase 2 project for parking and overlooks. Priority !Tem P&R recommends a new design for structures since the GLO will not approve construction of parking lots on the beach. For Mobi-Mats per ISAC recommendation. 10 Packery Channel Dredging and Beach Nourishment-2012 The project consisted of dredging approximately 264,300 cubic yards of beach quality material from within Packery Channel and placement of the dredged material as beach nourishment along Last Completed the Gulf shoreline to the south of Packery Channel,and 15,000 cubic yards of sand from the north $1,820,843 March 2012 to south end of the N. Padre Island Seawall. Dredging schedule to be determined by results of annual study of channel. 10a Packery Channel Dredging and Beach Nourishment-2020 The project consisted of dredging beach quality material from within Packery Channel and In permitting placement of the dredged material as beach nourishment along the Gulf shoreline. Dredging $350,000 process.Waiting to schedule to be determined by results of annual study of channel. hear from USACE. page 2 of 3 6/3/2019 PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE#2 CITY OF CORPUS CHRISTI RECOMMENDATIONS FOR APPROVAL JUNE 10, 2019 PROJECT EXPENSES PROJECT PROJECT BUDGET TO DATE STATUS 11 Packery Channel Pavilion(Phase 5) This project includes the pavilion expansion adjacent to the north side restroom or north side boat Revised 2/20/18 launch. This will allow the deck area around the restroom and some sitting areas for visitors. $250000 Estimated Design will begin in FY 2016 and construction will follow in FY 2017 dependent upon available , completion:Fall funding. P&R recommends further discussion on this item to determine if another amenity would Requesting Addt'I 2019.At 90% better suit the area. ISAC recommends Pavillion staged at the boat ramp parking lot as well as Design pavillion like structure on north and south side of the jetty. $23,000 14 Periodic Survey of Channel Conditions and Shoreline Packery Channel monitoring began in 2003 by Texas A&M Division of Nearshore Research by the U.S. Army Corps of Engineers. They ceased monitoring efforts in 2007 and the City assumed $1,847,312 2018 monitoring monitoring in 2008. The program includes the collection of bathymetric data in Packery Channel Increase from (Lifetime complete.2019 and the surrounding nearshore, measurement of elevation along the adjacent beach and inland $205,000 to Expenses to Contract Executed channel segment(shoreline position),elevation measurements across the Mollie Beattie Coastal $286,000 Date) 3/29/19. Habitat Community,and measurement of current velocity in the inland channel segment. 15 Packery Channel Revetment Repair Storm surge,strong currents,and waves from Hurricane Harvey caused damage to the slope protection and adjacent appurtenances along the banks of Packery Channel between the SH 361 bridge and the Gulf of Mexico.Repair concepts will be developed for two alternatives;one to return the project to its approximate pre-storm conditions,and another to upgrade the project to an improved condition that is more resilient to future storm impacts.The City will procure a design consultant through the RFQ process,and the selected firm will prepare the construction plans. Added 2/13/18 60%submittal Post design,construction will be procured. $600,000 $417'027 under review. 16 Park Road 22 Bridge — On February 21,2017,the TIRZ#2 board met and approved the amendment of using funds from Added 2/20/2018 Waiting for TIRZ#2 to support the construction of two one-way bridges spanning Park Road 22.City Council $0.00 developer on approved this amendment on February 20,2018. $4,000,000 Canals. 17 Beach Crosswalk at St.Augustine&Windward Dr. Per request of the Island Strategic Action Committee:Traffic improvement on Windward Drive at Saint Augustine Drive,for pedestrian crossing on Windward Drive to facilitate access to and from Michael J.Ellis Beach.Scope of work includes:crosswalk,access ramps,traffic signs,and Completed pavement markings.Estimated costs are$23,000 for the crossing and associated traffic $32,000 $20,331.00 February 2019. improvements;$9,000 for solar powered flashing LED crossing signs. 18 Feasibility Study _ Per Texas Tax Code Sec. 311.011. Project and Financing Plans.(c)Reinvestment zone financing plans must include(3)a finding that the plan is economically feasible and an $50,000 $33,173 Draft Complete economic feasibility study. 19 Contingency for all Projects Project contingency fund for all projects. $100,000 page 3 of 3 6/3/2019 City of Corpus Christi - Budget Reinvestment Zone No. 2 Fund 1111 Revenue Detail by Account Actual Original Amended Estimated Proposed Account Revenues Budget Budget Revenues Budget Number Account Description 2016- 2017 2017- 2018 2017- 2018 2017- 2018 2018- 2019 Reserved for Encumbrances $ 910,000 $ 990,000 $ - Reserved for Commitments 6,082,624 8,260,716 11,957,165 Unreserved - - - Beginning Balance $ 6,992,624 $ 9,250,716 $ 11,957,165 Property Taxes 300020 RIVZ#2 current taxes-City $ 2,055,446 $ 2,307,516 $ 2,307,516 $ 2,307,516 $ 2,412,597 300050 RIVZ#2 current taxes-County 1,037,197 1,164,191 1,164,191 1,164,191 1,171,473 300060 RIVZ #2 current taxes-Hospital 428,228 480,716 480,716 474,497 488,618 300110 RIVZ#2 delinquent taxes-City 28,284 20,753 20,753 19,015 18,998 300130 RIVZ#2 delnquent taxes-Del Mar 20 - - 1 - 300140 RIVZ#2 delinquent taxes-County 15,268 12,040 12,040 10,384 10,500 300150 RIVZ#2 delinqnt taxes-Hospital 6,341 4,927 4,927 4,550 4,600 300210 RIVZ#2 P&I - City 33,489 26,662 26,662 24,958 25,000 300230 RIVZ#2 P&I - Del Mar 22 - - 2 - 300240 RIVZ#2 P&I - County 17,108 14,027 14,027 11,723 12,001 300250 RIVZ#2 P&I-Hospital District 7,108 7,923 7,923 7,180 7,201 Property Taxes Total $ 3,628,510 $ 4,038,755 $ 4,038,755 $ 4,024,017 $ 4,150,988 Interest and Investments 340900 Interest on Investments $ 24,212 $ - $ - $ 78,865 $ 130,000 340995 Net Inc/Dec in FV of Investments (806) - - 806 - Interest and Investments Total $ 23,406 $ - $ - $ 79,671 $ 130,000 Interfund Charges 352000 Transfer from Other Fund $ - $ 757 $ 757 $ 757 $ - Interfunds Charges Total $ - $ 757 $ 757 $ 757 $ - Revenue Total $ 3,651,917 $ 4,039,512 $ 4,039,512 $ 4,104,445 $ 4,280,988 Total Funds Available $ 10,644,541 $ 13,355,161 $ 16,238,153 Note: Reinvestment Zone #2, commonly referred to as Packery Channel was created pursuant to the Tax Increment Financing Act to facilitate development of the land within the boundaries of the tax increment zone. The Zone became effective on November 14, 2000. The funding source is post-2000 incremental property taxes from taxing units with property within the boundaries of the zone. City of Corpus Christi - Budget Reinvestment Zone No. 2 Fund 1111 Expenditure Detail by Organization Actual Original Amended Estimated Proposed Org. Expenses Budget Budget Expenses Budget Number Organization Name 2016- 2017 2017- 2018 2017- 2018 2017- 2018 2018-2019 11305 TIF02 Projects Infrastructure $ - $ - $ - $ - $ 650,000 12960 Packery Patrol Operations 32,781 - - - - 55000 Principal retired 990,000 1,070,000 1,070,000 1,070,000 1,240,000 55010 Interest 353,700 309,150 309,150 309,150 261,000 55040 Paying agent fees 5,694 6,000 6,000 6,000 6,000 60010 Transfer to General Fund 11,649 12,846 12,846 12,846 13,929 Expenditure Total $ 1,393,824 $ 1,397,996 $ 1,397,996 $ 1,397,996 $ 2,170,929 Reserved for Encumbrances $ 990,000 $ - $ - Reserved for Commitments 8,260,716 11,957,165 14,067,224 Unreserved - - - Closing Balance $ 9,250,716 $ 11,957,165 $ 14,067,224 MARKET AND ECONOMIC FEASIBILITY STUDY UPDATE Tax Increment Reinvestment Zone #2 Corpus Christi, Texas 3 _ • • MOO 0.01' � q Prepared for: Prepared by: The City of Corpus Christi Economic Development Office P.O. Box 9277 CDS Corpus Christi, Texas 78469-9277 SPILLETTE1# September, 2009 .)trate9ic urnar. Auiance Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas TABLE ��� �A���l[����� ��, CONTENTS ,_.° , ~, TABLE OF CONTENTS TABLE OF EXHIBITS ii INTRODUCTION 1 ECONOMIC AND DEMOGRAPHIC OVERVIEW 2 Regional Economic Trends 2 Employment trends 2 Corpus Christi Regional Economy 5 Demographic Trends .6 Regional Demographics 6 Regional Demographic Trends 7 City of Corpus Christi Demographics 7 TIRZ Demographics 9 MARKET OVERVIEW 13 TIRZ#2 Development Trends 13 Residential 14 Commercial 15 Multi-Tenant Commercial Uses 15 Tourism and Hospitality 16 PROPERTY ACCOUNT AND TIRZ VALUE ANALYSIS 17 Historical Value Trends 17 TIRZ Value Estimation and Projection 19 Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas TABLE OF EXHIBITS Corpus Christi MSA Employment Trends 3 Map of Corpus Christi MSA 2 Corpus Christi MSA Employment Growth 2 2007 Major Employers—Corpus Christi MSA 4 Corpus Christi MSA Job Growth 5 County Population and Employment Forecasts 5 Corpus Christi MSA Demographic Overview 6 Net Population Migration 7 Population and Age Trends—City of Corpus Christi Total 8 City Population and Employment Forecasts 8 TIRZ#2 Map 9 Population and Age Trends in TIRZ#2 10 Household Characteristics 11 Household Size 11 Household Income Distribution 12 TIRZ#2 Building Permit Trends 13 Median Home Sale Prices 14 Trends in Home Sale Prices 15 Historical TIRZ#2 Taxable Assessed Value Compound Annual Growth Trends 18 Estimation of Current TIRZ Value by Property Class 20 Projected Increases in TIRZ Values by Property Class 20 Tortuga Dunes Value Schedule 20 Participating Jurisdiction Base Year Values 20 Project TIRZ#2 Assessed Value by Participating Jurisdiction 20 CDS I Spillette ii Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas INTRODUCTION This report is an update to two previous reports prepared by Economics Research Associates for City of Corpus Christi Tax Increment Zone#2 (TIRZ#2) in 2000 and 2002. It discusses the current economic and market conditions affecting the TIRZ. These conditions provide the foundation to an updated set of TIRZ #2 assessed value projections provided at the end of this report. CDS I Spillette 1 Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas ECONOMIC AND DEMOGRAPHIC OVERVIEW Regional Economic Trends • The Corpus Christi Metropolitan Statistical Area (MSA) includes Map of Corpus Christi MSA Aransas, Nueces and San Patricio e F fffi Counties, illustrated in the map on the ......,. 4.1 R F F U 0 1 0 right. The city of Corpus Christi is the JE R r, economic center of the MSA and the � '^^~• ., 0 larger region served by the Coastal Bend Council of Governments. - c,, R. R.'.e Fan BM aF. The region currently has a population . SAM AT CIO of 417,000 and an employment of ''.. NAL< ' 180,000. '‘...)-"`°:...,..,,. Employment trends -- - - _ hams�+•,de"_ ., c�. A ! FB., The employment growth of the region B . I f ° < :ii,..... � • e r has been positive with a compound ""F`FB < annual growth rate of slightly over . 1.0% since 1997, roughly .• -. approximating the U.S. employment growth. However,the current national economic climate has brought a recent decline in employment in the region. Corpus Christi MSA Employment Growth The table on the following page illustrates the employment by selected .c 5.0% - - 185,000 economic sectors from 2000 to July ' 4.0% - i - 180,000 2009. From an economic base o standpoint, the strongest sectors are 3.0% 1 ,• 175,000 • - 170,000 mining and construction. Other ai 2.0% • • • .. significant growth is occurring in the >. � •• . �•. • - 165,000 y sectors, "educational and health c 1.0% 1 •• •• • •• services" and "leisure and hospitality" ,E 0.0% ••' ••• • 160,000 0 — fl. which accounted for 54%of the growth c • • 155,000 from 2000 to July 2009. °; -1.0% •• - 150,000 `u L • The sectors in the Corpus Christi MSA a -2.0% - 145,000 that have seen little job growth are o 0 0 en 0 N0 0 manufacturing (due partly to .�-1 °i N N 0 0 N technological advances) and information services. Source:Texas Workforce Commission,Texas A&M Real Estate Center CDS I Spillette 2 Economic Study Update-Tax Increment Reinvestment Zone#2 Corpus Christi,Texas Corpus Christi MSA Employment Trends Annual Average Employment Change NAICS Industry 2000 I 2005 2007 2009* 2000- 2005- 2005 2009 Total Nonfarm Employment 166,100 170,000 177,100 180,100 3,900 10,100 Total Private 134,500 137,600 144,200 146,857 3,100 9,257 Goods Producing 28,700 28,200 31,500 31,129 -500 2,929 Mining and Construction 15,700 17,600 20,500 20,700 1,900 3,100 Construction of Buildings 6,200 5,500 6,400 6,471 -700 971 Manufacturing 13,100 10,600 11,100 10,429 -2,500 -171 Service Providing 137,300 141,800 145,600 148,971 4,500 7,171 Private Service Providing 105,800 109,400 112,700 115,729 3,600 6,329 Trade,Transportation,and Utilities 29,900 30,500 31,800 32,371 600 1,871 Wholesale Trade 5,100 5,300 5,600 5,686 200 386 Retail Trade 19,300 20,100 20,800 21,043 800 943 General Merchandise Stores 4,100 4,300 4,100 4,400 200 100 Transportation,Warehousing,and Utilities 5,400 5,100 5,400 5,643 -300 543 Information 3,200 2,600 2,500 2,329 -600 -271 Financial Activities 7,700 7,700 8,200 8,129 0 429 Finance and Insurance 4,700 4,700 4,900 4,900 0 200 Professional and Business Services 16,300 16,200 16,300 16,429 -100 229 Admin/Support/Waste Mgmt&Svcs 10,600 9,900 9,500 9,657 -700 -243 Educational and Health Services 24,100 26,100 26,600 28,786 2,000 2,686 Hospitals 7,200 8,000 7,500 7,943 800 -57 Leisure and Hospitality 17,700 19,800 20,700 20,557 2,100 757 Other Services 6,900 6,400 6,600 7,129 -500 729 Government 31,600 32,400 32,900 33,243 800 843 Federal Government 5,800 6,200 6,500 6,629 400 429 State Government 4,400 4,500 4,600 4,943 100 443 Local Government 21,400 21,600 21,800 21,671 200 71 Source:Texas Workforce Commission, 2009 *2009 Data is averaged through July CDS I Spillette 3 Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas The table on the right lists the 2008 Major Employers—Corpus Christi MSA major employers in the Corpus Christi MSA. Government Type of Civilian Employer agencies (local and military) Product or Service Employment and health care institutions CHRISTUS Spohn Health System Hospital 5,400 disproportionately represent Corpus Christi ISD School District 5,178 the major employers in the H.E.B. Grocery Company 5,000 region. Corpus Christi Army Depot Helicopter Repair 4,876 The scheduled closing of the City of Corpus Christi City Government 3,171 Naval Station Ingleside will adversely impact the regional Bay,Ltd. Industrial Construction 2,100 economy but will not likely be Naval Air Station-Corpus Christi Flight Training 1,630 devastating. According to the Del Mar College Junior College 1,542 2005 Reports on the Driscoll Children's Hospital Hospital 1,500 announced closings, direct job Corpus Christi Medical Center Hospital 1,300 losses in the three facilities will total 3,154 and the First Data Corporation Teleservices 1,200 indirect job loss of 3,879 for a Susser Holdings Corporation Convenience Stores 1,100 total of 7,033 jobs lost (4% of Nueces County County Government 1,034 regional employment). Texas A&M Corpus Christi Four-year University 991 There is some concern over Flint Hills Resources Crude Oil Refining 920 the future of the Corpus Kiewit Offshore Services Offshore Rig Manu. 900 Christi Army Depot helicopter Corpus Christi State School Special-needs Facility 850 repair center when the US Valero Refining Crude Oil Refining 824 involvement in Iraq and Sherwin Alumina Alumina 800 Afghanistan is reduced. The impact is unknown at this Sam Kane Beef Processors Beef Processing 800 time. Flour Bluff ISD School District 750 Source:Corpus Christi Regional Economic Development Corporation,Regional Profile, June 2009 1 Report of the Impact of the 2005 Base Realignment and Closure Committee Recommendations for Naval Station Ingleside, Naval Station Corpus Christi, and Corpus Christi Army Depot, prepared by Impact Data Source, December 2005 CDS I Spillette 4 Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas Corpus Christi Regional Economy The Corpus Christi regional Corpus Christi MSA Job Growth economy has two strong underpinnings: 1) a strong Compared with Texas and the U.S. industrial base and 2) a Index.Jemmy I977=foo healthy tourism industry. 330— Rich of Woo Low of price HIgh-0ii boom According to a recent report 28D— from the San Antonio office of the Federal Reserve, the 230— Tow corpus ChristCorpus Christi economy has grown consistently, tracking 180— the U.S. economy since 1987 7�_ us. (See chart at the right). Oil _ —prices have been a key driver90 - , , , , , , , , of the regional economy in the f1 13 "/5 'I' /9 'f1 is lb 'n; 19 91 '93 9b '9/ '99 'U1 T3 'US 'UI past but the oil price spike of SOURCES.Bureau of Labo,sti,feica.Tema'NoddoiceCommksion. 2006 and 2007 was not felt significantly in Corpus Christi. Graphic From: VISTA, South Texas Economic Trends and Issues, Corpus Christi: An Economy in Transition, Federal Reserve Band of Dallas, San Antonio Branch, Future economic growth in Winter 2007/2008 the Corpus Christi region is expected to less dependent on the oil and gas sectors and be generated by: • the expansion of trade through the port, • becoming a center for alternative energy sources (stimulated by the wind energy research activities being proposed for the area), • tourism, and • a burgeoning retirement community. Population and Employment Forecasts County Population and Employment Forecasts The table on the right illustrates the 2006 2035 I Change CAGR* population and employment forecasts Population produced by the agency responsible for Nueces County 325,745 443,722 117,977 1.1% transportation planning in the region. Aransas County is not included because it San Patricio County 83,821 117,856 34,035 _ 1.2% is not in the MPO's planning area. The key Total 409,566 561,578 152,012 1.1% result is that local planners are expecting Total Employment long-term moderate growth in the region, Nueces County 159,863 231,844 71,981 1.3% consistent with recent trends in the 1.0% San Patricio County 18,204 25,617 7,413 1.2% to 1.2%range. Total 178,067 257,461 79,394 1.3% *CAGR=Compound Annual Growth Rate Source:Corpus Christi Metropolitan Planning Organization CDS Spillette 5 Economic Study Update-Tax Increment Reinvestment Zone#2 Corpus Christi,Texas Demographic Trends Regional Demographics The table below illustrates some recent demographic trends for the Corpus Christi MSA. Demographic data in this report is from PCensus for Mapinfo, which is a reseller of Claritas, Inc. demographic data. According to PCensus estimates, over the past 9 years since the 2000 census, the region has added 14,201 persons (3.5%) and 9,128 households. The PCensus 2009 population estimate is reasonably close to the U.S. Census estimate for July 2008 of 415,376. Corpus Christi MSA Demographic Overview Characteristic 2000 Census 2009 Es imate 2014 Projection Count I Share I Count I Share Count I Share Total Population 403,280 417,481 428,381 Population by Age Age 17 and under 115,341 28.6% 112,513 27.0% 113,887 26.6% Age 18 and over 287,939 71.4% 304,968 73.0% 314,494 73.4% Age 65 and over 46,481 11.5% 52,951 12.7% 59,711 13.9% Median Age 33.6 35.2 35.4 Population by Ethnicity and Race Hispanic or Latino 212,703 52.7% 234,299 56.1% 248,264 58.0% White(Non-Hispanic) 165,523 41.0% 157,458 37.7% 153,838 35.9% Black or African American(Non-Hispanic) 14,788 3.7% 13,665 3.3% 13,120 3.1% Native(Non-Hispanic) 1,270 0.3% 1,421 0.3% 1,519 0.4% Asian (Non-Hispanic) 4,461 1.1% 5,280 1.3% 5,778 1.3% Pacific Islander(Non-Hispanic) 201 0.0% 207 0.0% 210 0.0% Other Race(Non-Hispanic) 409 0.1% 390 0.1% 381 0.1% Two or More Races (Non-Hispanic) 3,925 1.0% 4,761 1.1% 5,271 1.2% Households by Household Income Less than$15,000 $15,000 to$24,999 29,193 20.6% 25,569 17.0% 24,390 15.6% $25,000 to$34,999 21,252 15.0% 19,607 13.0% 18,878 12.1% $35,000 to$49,999 19,508 13.8% 18,634 12.4% 18,130 11.6% $50,000 to$74,999 23,703 16.8% 23,952 15.9% 24,027 15.4% $75,000 to$99,999 24,997 17.7% 28,354 18.8% 29,280 18.8% $100,000 to$149,999 12,134 8.6% 15,427 10.2% 17,009 10.9% $150,000 to$249,999 6,970 4.9% 13,086 8.7% 16,242 10.4% $250,000 to$499,999 2,635 1.9% 3,997 2.7% 5,484 3.5% $500,000 or more 836 0.6% 1,507 1.0% 1,818 1.2% Median Household Income 302 0.2% 586 0.4% 831 0.5% Source:PCensus for Mapinfo,Tetrad Computer Applications,2009 CDS ) Spillette 6 Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas Regional Demographic Trends According to the previously cited report from the Federal Net Population Migration Reserve, the Corpus Christi Corpus Christi MSA region's recent population trends have been somewhat Net migration 4.000- weak. One such measure of population growth is the net 2.000- population migration. A region 0 MMIll can have positive population growth because of a net -2.000- number of births over deaths yet still still have a net out- -6000- migration of people from the community. This appears to be -8.000 . 1 1 1 1 1 1 1 1 1 1 [ 1 1 1 the case for the Corpus Christi 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 region in the last decade. NOTE Net migration was zero In2000and 53i 2005. SOURCE Census Bureau. Generally, if area businesses are prosperous and creating Graphic From: VISTA, South Texas Economic Trends and Issues, Corpus Christi:An new jobs, the region will have Economy in Transition, Federal Reserve Band of Dallas, San Antonio Branch, net immigration. According to Winter 2007/2008 the Fed report, "Corpus Christi experienced positive net domestic migration through 1997, but it fell to negative in 1998, where it remained through 2003. Net domestic migration became positive again in 2004 and 2005, but just slightly. International immigration increased somewhat in the 1990s, but it too has experienced a general downward trend in the 2000s. Net internal growth has also slowed since the 1980s, with births decreasing and deaths increasing. Overall population growth and, in particular, net migration show Corpus Christi has grown sluggishly over the past two decades." City of Corpus Christi Demographics The City of Corpus Christi has, within the municipal boundaries, over two-thirds of the residents of the region with a current estimated population of 287,168. Like the region, the City's growth over the past nine years has been modest (9,714 added, 3.5%). The table on the following page illustrates the historical and expected future population by age group. The population of the City is getting slightly older with most of the change occurring in the 35-44 year old group. CDS Spillette 7 Economic Study Update-Tax Increment Reinvestment Zone#2 Corpus Christi,Texas Population and Age Trends-City of Corpus Christi Total 2000 Census 2009 Estimate 2014 Estimate Change Age Group Count Share Count Share Count Share 2000- 2009- 2009 2014 Total Population 277,454 287,168 294,563 9,714 7,395 Age 0 to 4 21,544 7.8% 22,243 7.8% 23,105 7.8% 699 862 Age 5 to 9 21,592 7.8% 21,518 7.5% 21,973 7.5% -74 455 Age 10 to 14 21,487 7.7% 20,809 7.3% 21,236 7.2% -678 427 Age 15 to 17 13,439 4.8% 12,521 4.4% 12,070 4.1% -918 -451 Age 18 to 20 13,329 4.8% 12,791 4.5% 12,697 4.3% -538 -94 Age 21 to 24 16,058 5.8% 16,567 5.8% 16,327 5.5% 509 -240 Age 25 to 34 37,792 13.6% 37,792 13.1% 39,694 13.5% 0 1,902 Age 35 to 44 43,275 15.6% 36,898 12.9% 35,129 11.9% -6,377 -1,769 Age 45 to 49 19,928 7.2% 20,455 7.1% 18,549 6.3% 527 -1,906 Age 50 to 54 16,657 6.0% 20,261 7.1% 19,715 6.7% 3,604 -546 Age 55 to 59 12,024 4.3% 17,612 6.1% 19,236 6.5% 5,588 1,624 Age 60 to 64 9,527 3.4% 13,860 4.8% 16,568 5.6% 4,333 2,708 Age 65 to 74 16,944 6.1% 17,541 6.1% 21,490 7.3% 597 3,949 Age 75 to 84 10,533 3.8% 11,561 4.0% 11,372 3.9% 1,028 -189 Age 85 and over 3,325 1.2% 4,739 1.7% 5,402 1.8% 1414 663 Age 16 and over 208,504 75.2% 218,504 76.1% 224,315 76.2% 10,000 5,811 Age 18 and over 199,392 71.9% 210,077 73.2% 216,179 73.4% 10,685 6,102 Age 21 and over 186,063 67.1% 197,286 68.7% 203,482 69.1% 11,223 6,196 Age 65 and over 30,802 11.1% 33,841 11.8% 38,264 13.0% 3,039 4,423 Median Age 33.2 34.8 35.1 1.6 0.2 Average Age 34.7 36.2 36.8 1.5 0.6 Source:PCensus for Mapinfo,Tetrad Computer Applications,2009 Population and Employment Forecasts for City of Corpus Christi City Population and Employment Forecasts The table at the right shows the forecast of population and 2006 2035 Change CAGR* employment provided by the MPO. Posulation 294 075 399 328 105 253 1.1% The current estimates differ Total Em.lo ment 156 632 223 715 67 083 1.2% somewhat from other sources such as *CAGR=Compound Annual Growth Rate the Census. Nevertheless, the Source:Corpus Christi Metropolitan Planning Organization principal point of these forecasts is that they demonstrate long-term growth rates consistent with past trends-continued slow growth. CDS I Spillette 8 Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas TIRZ Demographics In the 2000 Census, only 908 persons resided in the designated for TIRZ #2 shown below. According to the PCensus estimates,that number increased by 288 persons to 1,196 in 2009. TIRZ#2 Map Ilk uby Park Matecap Blvd e of Texas O Beach Access RD 4 .1 Legend Parcels TIF Area Padre Balli County Park N All"A W �;II►� E S STs JS Md-S Source:The City of Corpus Christi CDS I Spillette 9 Economic Study Update-Tax Increment Reinvestment Zone#2 Corpus Christi,Texas The population in TIRZ#2, as illustrated in the table below, has a marked lack of children and overall lack population under the age of 20. This population makes up only 12.2% of the total population in TIRZ #2, while this group comprises 31.5% of the population of the City of Corpus Christi overall. The TIRZ also has a higher share of persons over age 65. Population and Age Trends in TIRZ#2 2000 Census 2009 Estimate 2014 Estimate Change Age Group Number Share Number Share Number Share 2000- 2009- 2009 2014 Total Population 908 1,196 1 1,343 288 147 Age 0 to 4 29 3.2% 34 2.9% 39 2.9% 5 5 Age 5 to 9 22 2.5% 40 3.4% 41 3.0% 18 1 Age 10 to 14 25 2.8% 37 3.1% 47 3.5% 12 10 Age 15 to 17 22 2.5% 17 1.4% 22 1.6% -5 5 Age 18 to 20 30 3.3% 16 1.4% 23 1.7% -14 7 Age 21 to 24 87 9.55% 43 3.6% 30 2.3% -44 -13 Age 25 to 34 168 18.5% 209 17.4% 180 13.4% 41 -29 Age 35 to 44 139 15.3% 201 16.9% 235 17.5% 62 34 Age 45 to 49 78 8.5% 96 8.0% 115 8.6% 18 19 Age 50 to 54 77 8.5% 118 9.9% 125 9.3% 41 7 Age 55 to 59 53 5.9% 106 8.8% 130 9.7% 53 24 Age 60 to 64 48 5.4% 82 6.9% 111 8.3% 34 29 Age 65 to 74 88 9.7% 107 8.9% 138 10.2% 19 31 Age 75 to 84 39 4.3% 72 6.0% 76 5.7% 33 4 Age 85 and over 1 0.2% 18 1.5% 30 2.2% 17 12 Age 16 and over 826 _ 91.0% 1,080 , 90.3% 1,213 90.3% 254 133 Age 18 and over 808 89.1% 1,068 89.3% 1,195 89.0% 260 127 Age 21 and over 779 85.8% 1,052 88.0% 1,172 87.2% 273 120 Age 65 and over 129 . 14.2% 196 16.4% 244 18.1% 67 48 Median Age 40.3 45.0 47.4 4.7 2.3 Average Age 41.1 44.7 46.4 3.7 1.7 Source:PCensus for Mapinfo,Tetrad Computer Applications,2009 CDS I Spillette 10 Economic Study Update-Tax Increment Reinvestment Zone#2 Corpus Christi,Texas The tables on this page Household Characteristics illustrate household TIRZ#2 characteristics for TIRZ #2 compared with the City of 2000 2009 2014 Household Type Corpus Christi. The Count Share I Count I Share 1 Count Share overwhelming majority of Non-family households 279 373 420 households in the TIRZ 1 person 227 81.3% 310 83.0% 351 83.7% being one-person non- 2 persons 46 16.6% 56 15.0% 60 14.2% family and two-person family households further 3 persons 5 1.9% 7 1.7% 8 1.8% illustrates of the lack of 4 or more persons 1 0.4% 1 0.3% 1 0.2% children in the TIRZ. In Family households 230 304 342 fact, the quantity of non- 2 persons 168 73.0% 222 73.1% 251 73.3% family households exceeds 3 persons 33 14.5% 45 14.7% 50 14.7% family households in the TIRZ; this is in stark 4 or more persons 28 12.2% 37 12.2% 41 12.0% contrast to the city overall, where there are more than City of Corpus Christi twice the number of family 2000 2009 2014 households versus non- Household Type family households in the Count I Share I Count I Share Count I Share city. Non-family households 28,326 29,817 30,740 The table at the bottom of 1person 22,956 25,094 84.2% 26,203 85.2% 85.4% the page shows that the 2persons 4,428 3,869 13.0% 3,688 12.0% 11.8% average household size 3persons 633 605 2.0% 600 2.0% 1.9% was also substantially 4ormorepersons 309 249 0.8% 249 0.8% 0.8% lower in the TIRZ (1.75) Family households 70,465 74,458 76,907 compared to 2.70 persons per household in the City. 2persons 25,058 27,490 36.9% 28,810 37.5% 37.6% 3persons 17,334 18,629 25.0% 19,341 25.2% 25.2% 4ormorepersons 28,073 28,339 38.1% 28,756 37.4% 37.3% Source: PCensus for Mapinfo,Tetrad Computer Applications,2009 Household Size TIRZ#2 vs. Corpus Christi Average Household Size I 2000 I 2009 I 2014 TIRZ#2 1.77 1.75 1.75 City of Corpus Christi 2.75 2.70 2.68 Source: PCensus for Mapinfo,Tetrad Computer Applications,2009 CDS I Spillette 11 Economic Study Update-Tax Increment Reinvestment Zone#2 Corpus Christi,Texas Household Income Distribution The tables on this page TIRZ#2 vs. Cor•us Christi-Nominal Dollars illustrate the household 2000 2009 2014 income characteristics TIRZ#2 Count l Share Count 1 Share Count Share of the area in the TIRZ and the City of Corpus Total Households 521 677 762 Christi. Less than$15,000 86 16.6% 109 16.1% 120 15.8% $15,000 to$24,999 51 9.7% 70 10.3% 79 10.4% Overall, the income distribution in the TIRZ $25,000 to$34,999 78 15.1% 91 13.5% 91 12.0% mirrors that of the City $35,000 to$49,999 97 18.7% 129 19.1% 150 19.7% of Corpus Christi closely, $50,000 to$74,999 102 19.5% 125 18.5% 130 17.1% except on a per capita $75,000 to$99,999 55 10.6% 75 11.1% 91 11.9% basis; this is likely due $100,000 to$149,999 24 4.7% 39 5.8% 52 6.9% the lack of children $150,000 to$244,999 21 4.1% 30 4.5% 37 4.9% residing in the TIRZ. $250,000 to$499,999 6 1.1% 7 1.0% 9 1.2% The table at the bottom $500,000 or more 1 0.2% 1 0.2% 2 0.3% of the page includes a CORPUS CHRISTI comparison of average, Total Households 98,779 104,275 107,647 median and per capita Less than$15,000 19,524 19.8% 17,241 16.5% 16,459 15.3% household income for $15,000 to$24,999 14,684 14.9% 13,290 12.8% 12,739 11.8% the two geographies in $25,000 to$34,999 13,319 13.5% 12,869 12.3% 12,502 11.6% constant 2009 dollars. $35,000 to$49,999 16,639 16.8% 16,429 15.8% 16,382 15.2% According to the $50,000 to$74,999 17,987 18.2% 19,825 19.0% 20,405 19.0% PCensus estimates, $75,000 to$99,999 8,734 8.8% 11,007 10.6% 12,008 11.2% household incomes in $100,000 to$149,999 5,159 5.2% 9,302 8.9% 11,460 10.7% the TIRZ are declining $150,000 to$244,999 1,873 1.9% 2,831 2.7% 3,852 3.6% more than double the $250,000 to$499,999 614 0.6% 1,039 1.0% 1,236 1.2% amount as the city as a whole. This may be due $500,000 or more 246 0.3% 442 0.4% 604 0.6% to the increasing number of retirees living in the TIRZ. Measure 2000 2009 Change Geography Adjusted Projection % Average household income TIRZ#2 $69,976 _ $57,359 -18.03%_ City of Corpus Christi $61,407 $57,050 -7.10% Median household income TIRZ#2 $53,460 $42,983 -19.60% City of Corpus Christi $46,734 $42,978 -8.04% Per capita household income TIRZ#2 $40,598 $32,468 -20.03% City of Corpus Christi $22,203 $21,009 -5.38% Source: PCensus for Mapinfo, Tetrad Computer Applications, 2009 2000 Income statistics where adjusted to 2009 dollars using the CPI-U CDS I Spillette 12 Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas MARKET OVERVIEW TIRZ #2 Development Trends The table below illustrates the 2003 - 2009 record of building permits within TIRZ #2. Up to now, condominium and commercial development has dominated within the TIRZ, as opposed to single family homes. Commercial permitting for new shells or buildings occurred throughout the period (see the Commercial summary below). The most significant category of permitting was new condominiums or townhouses, particularly from 2006 to 2008, during which the City issued 68 permits for new construction. The most significant new development project planned for the TIRZ at the present time is Tortuga Dunes, located immediately north of the Packery Channel. This will be an upscale residential development with a strict Caribbean-style architectural theme. Phase I of the development includes 92 single family lots plus townhome sites which are being marketed now. There is also land reserved for a Phase II with additional home lots and potentially condominiums. The developer projects the first homes to be built in 2010,with the pace of construction picking up rapidly in 2011. A Holiday Inn Express is reportedly planned for 14100 South Padre Island Drive. TIRZ#2 Building Permit Trends Number of Permits 2003 2004 2005 2006 2007 2008 2009 Commercial New commercial shell only 1 3 6 New commercial building 2 9 3 2 • Residential • New apartments 1 New condo/townhouse 2 4 35 11 22 New single family 1 1 1 2 3 Permit Valuations 2003 2004 2005 i 2006 2007 2008 2009 Commercial New commercial shell only $227,000 $696,000 $1,887,693 New commercial building $346,600 $818,399 $1,042,410 $123,200 • Residential New apartments $404,000 New condo/townhouse $0 $507,000 $4,388,632 $715,000 $5,418,400 New single family $4,000 $2,500 $82,000 $292,200 $383,600 Source:City of Corpus Christi CDS I Spillette 13 Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas Residential A mix of second home owners, retirees, and locally employed residents drives the North Padre Island housing market. A check of the TIRZ #2 property accounts indicates that relatively few homes are owner-occupied as a primary residence—only 204 accounts out of more than 1,500 total have claimed a homestead exemption. Nearly all residential properties in TIRZ #2 are classified as "condominium" by the Nueces County Appraisal district (1,499 condominium accounts vs. 13 single family, duplex, or triplex, plus one classified as"multifamily"). The residential market on North Padre Island is currently in turmoil due to the national economic and financial crisis, which has negatively affected residential mortgage borrowers. From 2005 to 2008 this area experienced a surge in housing prices. Much of the demand driving the price increases was reportedly from buyers outside Texas who were either purchasing for retirement, a second home, or an income-generating investment. Since 2008, this market has decreased markedly and foreclosed properties have come to dominate the market. One real estate agent reported that two foreclosed North Padre Island townhome units (not within TIRZ#2) that originally sold for $240,000 within the last two years sold within the last month for $133,500 and $160,000. Until the foreclosed properties are cleared from the market,they will continue to depress prices. The Corpus Christi Association of realtors provided Median Home Sale Prices CDS I Spillette with data from the Multiple Listing Service (MLS) for 2007 through year to date 2009 for North Padre Island North Padre Island (both TIRZ and non-TIRZ areas). Median The data, as presented in the chart on the next page, Year Closing Price Change show that the shares of overall sales activity 2007 $231,000 generated by homes priced above $250,000 has receded substantially from 2007 and 2008 levels. 2008 $232,500 $1,500 This reflects the anecdotal evidence that many 2009 YTD $192,500 -$40,000 formerly higher-priced residential units are now selling for much lower prices, often because of foreclosure. The median closing prices for the time Source: Corpus Christi Association of Realtors period also indicate a significant shift in pricing for 2009, as shown in the table to the right. In the long run, however,the future will bring an eventual return to strong demand and increased prices and property values. Although Corpus Christi's job base has experienced slow growth and household incomes are moderate, North Padre Island's residential market should not be as constrained as other areas of the city. This is because North Padre Island will attract out-of-town buyers and renters who are relatively detached from the local economy but who desire coastal property and find the area's home prices to be more affordable than other Gulf Coast beach locations. CDS I Spillette 14 Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas Trends in Home Sale Prices North Padre Island Share of Total Closings 25.0% 20.0% 15.0% I 10.0% ji S.Oo O of of of ofO ofof of of �i ofof C)°)°) � .mow 0.0/ °) � � � of of O °� of of of of of of of � N. ti� ti� tiA ti� do � )) 0)‘ c• tee' 000 00, 00- 00- 00, 00. 00. 00, 00, 00, 00 J ) 00 00 00 00 00 00 00 00 00 00, Li gyp ,�. t 1Nro tiq ti0 , X50 . � ■2007 IN 2008 a 2009 YTD Source: Corpus Christi Association of Realtors Commercial Multi-Tenant Commercial Uses Reliable data for commercial properties on North Padre Island is limited. A commercial broker who is active on the Island provided CDS I Spillette with some information however. A survey conducted in 2006 indicated approximately 86,000 square feet of leaseable (not owner/user) space in inventory at that time, with two properties totaling 24,732 square foot under construction. Of the built space, approximately 90 percent was occupied at that time. Rents ranged from $0.95 per month net of utilities to$1.65 per month,triple net. New multi-tenant properties since 2006 include: • Marina Plaza,4,732 square feet, currently 75%vacant • An addition to Padre Professional Plaza, though it is unclear whether the entire planned 20,000 square feet was actually completed; the addition is mostly occupied by a church, though some vacancy also remains • Loma Alta Plaza, 23,000 square feet,vacancy data not available • Padre Station, 7,901 square feet, 59%vacant • A small retail center at 15117—15121 South Padre Island Drive New single-tenant developments include a CVS drugstore and Ace Hardware. CDS Spillette 15 Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas Current occupancy rates and rents are uncertain but are reported lower than in 2006. The prime locations are near the intersection of South Padre Island Drive and SH 361, especially on the west side (the "going home" side). Traffic counts are reportedly approaching 28,000 — 30,000 vehicles per day. Traffic counts and local market area population are relatively higher on the mainland portion of the south side of Corpus Christi, putting North Padre Island at a locational disadvantage when competing for tenants. Typical commercial tenants on North Padre Island were professional offices for businesses related to real estate. The economic slowdown and damaged residential real estate market has resulted in those firms having to shrink both employees and their occupied space. When the ensuing vacancies are being filled, it is with other types of retail businesses such as restaurants that can draw from vacationers. Significant neighborhood retail uses such as grocery stores are not yet on the island due to insufficient full time resident population. Tourism and Hospitality Corpus Christi receives approximately 7 million visitors per year. According to research by the Office of the Governor, over three quarters of "person-days" (one visitor spending one day in the area) to the metropolitan area comes from within Texas. Together visitors from the San Antonio and Austin areas accounted for 42 percent of total person-days in the region. The Convention and Visitors Bureau (CVB) reports marketing of Corpus Christi in the Houston region began just last year. Leisure travelers are estimated to constitute 73 percent of person-days in the Corpus Christi region. Apart from visiting family and friends, major attractions for leisure travelers include the U.S.S. Lexington and Texas State Aquarium. Fishing, beaches, and nature tourism also have a major role in visitor activities. The CVB has is trying to expand its efforts regarding nature tourism, and touts that the San Diego Audubon Society has named Corpus Christi the "birdiest city in America" for the sixth year in a row. Business travel, including meetings and conventions, makes up the balance of travel demand. North Padre Island attracts tourists for its beaches and fishing. To accommodate these visitors, there is a large stock of vacation rental housing. North Padre Island offers five hotel properties: • Best Western on the Island • Hampton Inn • Comfort Suites • Hawthorn Suites • Holiday Inn SunSpree Resort Hotel All of these properties are located within TIRZ #2. The Holiday Inn Express, mentioned earlier, would also be in the TIRZ if it is built. Among the improvements currently proposed to be funded by TIRZ #2 are amenities for the public parklands along Packery Channel. Because these amenities will likely increase visitation to these parks, their implementation should have a beneficial impact on demand for certain types of commercial uses, especially convenience retail and casual dining. CDS I Spillette 16 Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas PROPERTY ACCOUNT AND TIRZ VALUE ANALYSIS CDS I Spillette extensively analyzed the TIRZ #2 property account data provided by the Nueces County Appraisal District (Nueces CAD). Accounts were classified based on use (largely determined by the State of Texas codes used by appraisers) and by location — beachfront, other waterfront, and inland sites. Residential properties on Lake Padre were noted separately as well, due to their access to Packery Channel. Historical Value Trends Nueces CAD also provided historical taxable values for the TIRZ #2 accounts, going back to 2001 if available. Analysis of these values provided data on taxable value growth trends presented in the table on the following page. The table gives the compound annual growth rates for three time intervals for all property use classes and locations for which data was available. These growth rates were often very high. Among the key observations are: • Condominium accounts experienced rapid value increases through 2008. Beachfront and Lake Padre condo accounts experienced greater increases, on a percentage basis,than inland condos. • Improved commercial properties showed wildly rapid value escalation from 2005 to 2008. • Various classes of vacant land lost value from 2008 to 2009, a significant change in trend. 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The first table breaks down the 2009 certified taxable assessed values by property class and location as of September 2009 for the City of Corpus Christi. It also breaks down the uncertified accounts in the same manner. Different levels of taxable value loss are assumed for different classes of properties; generally, those classes which experienced more rapid increases in value up through 2008 are anticipated to suffer greater value reductions as a result of owner protest. Applying these value loss assumptions leads to an estimated certified value of the TIRZ for 2009 of$ 380,825,433. CDS I Spillette used the same methodology for each participating jurisdiction; tables for these other jurisdictions were not included in this report. The second table provides CDS I Spillette's projections for value appreciation and average annual new development value by property class. These projections were based on the historical property accounts analysis and market research findings. CDS I Spillette projects that value losses will occur in the near term, 2010-2011, due to falling prices and rents. By 2012-2015, values will begin to increase slowly and more new development will occur. From 2016 on, it is projected that value increases of up to 15% annually will be achievable for several property classes and new development will average more than $25 million per year. In general, properties with beach frontage or interior waterfront (especially Lake Padre) are projected to appreciate the fastest. The same value increase and new development factors were used for each participating jurisdiction. It should be noted that Tortuga Dunes is not included in the new development amounts in the table. Tortuga Dunes has provided a schedule of new development value that is included in the actual TIRZ value projections. Also, these projections represent incremental development on a property by property basis; they do not assume a large scale self-contained resort is developed on one of the large tracts within the TIRZ. Such a resort could add several $100s of millions in assessed value above the increases projected by CDS I Spillette. CDS I Spillette 19 Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi, Texas Estimation of Current TIRZ Value by Property Class 2009 Values Under Protest 2009 Certified Projected Taxable 2009 Final Value Sept. Certified Property Class Property Location 2009 Preliminary Projected Value Value Protest Loss Improved condo Beachfront $ 73,783,554 $ 1,835,883 -30% $ 75,068,672 Lake Padre 29,822,200 1,824,218 -30% 31,099,153 Interior waterfront 20,090,193 - 20,090,193 Inland 58,713,493 17,053,593 -30% 70,651,008 Improved single family Interior waterfront $ 434,849 $ - $ 434,849 Inland 1,293,317 173,367 -30% 1,414,674 Improved multifamily Interior waterfront $ 7,912,520 $ - $ 7,912,520 Duplex and triplex Inland $ 351,685 $ - $ 351,685 Improved commercial Beachfront $ 5,989,259 $ - $ ,989,259 Other waterfront 3,229,447 - 3,229,447 Inland 50,495,181 1,068,677 -30% 51,243,255 Improved real property inventory Lake Padre $ 153,409 $ - $ 153,409 Unimproved real property inventory Interior waterfront $ 517,941 $ 640,275 -30% $ 966,134 Inland 386,218 568,231 -30% 783,980 Unimproved commercial land Inland $ 1,383,601 $ 273,000 -30% $ 1,574,701 Unimproved multifamily land Interior waterfront $ 1,021,500 $ - $ 1,021,500 Inland 2,577 $ - $ 2,577 Unimproved residential unplatted land Interior waterfront $ 164,504 $ - $ 164,504 Inland 24,642 - 24,642 Unimproved commercial lots Beachfront $ 24,597,726 $ - $ 24,597,726 Interior waterfront 6,320,828 - 6,320,828 Inland 45,775,050 240,626 -30% 45,943,488 Vacant residentially platted lots-tracts Interior waterfront $ 15,349,519 $ 1,144,411 -30% $ 16,150,607 Inland 9,020,370 9,451,791 -30% 15,636,624 TOTAL $356,833,583 $34,274,072 $ 380,825,433 CDS I Spillette 20 TZ a;lall!dS I Sa3 llall!ds I S00 :aDJnoS sauna eBn)Jol apnpu lou saoa 1 000'SLb'SZ $ 000'OSb'b $ 000'09S $ 1V1O1 %S %0 %0T- puelul %Oi %Z %0 luoJJJa1em spell-slot Joualul palleld AllelluaplsaJ aueDeA %0T °AZ %0T- puelul luoJ}Jalem %ST %S %0 Joualul %Si %0T %0 1uoJ;ypeag 5101 lepJawuJoJ panOJdwlull %S %0 %0 puelul pue! palleldun %0T %Z %0 1uoJ}Ja1em Ie!luapisaJ panoJdwiun Joualul %S %Z %0 PUelul luoJ}Ja1em %OT %S %0 pue!ALwe 11nw PanoJdwlun Joualul %S %Z %0 puelul puel lepJawwoa panoJdwlua %S %Z %0T- puelul AJoluanul luoJ}Ja1em ojd %0T %S %0 A1Jad leaJ panoJdwlua Joualul %0T %S %0 aJped alel AJoluanui AljadoWU leaf panoJdwl 000"000"T $ %0T 000'000"T $ %S %0T- pUelul 000"000"T $ %ZT %S %0 luoJJJalem Jay1p 000"000'ZT $ %ST %0T %0 luoJ;LJeag lepJawwoD panoadwl %S %0 %OE- puelul xaldul pue xaldna luoJ}Ja1em A iwe i nw anoJdw %0T °�Z °60T Joualul I. d.11 P I %S %0 000'09£ $ %O£- PUelul luoJJJalem A iwe a Huls anoJdw %0T 000'0SL $ %Z 000'00Z $ %0Z- Joualul I. 3 I P I 000"O0L'Z $ %S %Z %0£- pUelul 000"008'T $ %0T %Z %SZ- luoJpalem JoualuI 000"009"£ $ %ST 000'00L"Z $ %S %0Z- aJped a)lel 000"SL£"£ $ %ST %S %0Z- luoJ;yaeag opuoa panOJdwI Tluawdolanaa I ales Tluawdolanaa ales iluawdolanaa ales maN lenuuy ylmoJD maN lenuuy ylmoJ9 maN ienuuv ylmoJ9 uoilepol sse10 AlJadoJd lenuuy lenuuy lenuuy AliadoJd ZZOZ-9TOZ STOZ-ZTOZ TTOZ-OTOZ I 1 ssep Apadoid Aq sanlen ZHII u! saseanul papafoid sexal'!;s!.143 sndioj Z#auoz 4uaw;sanu!aa wawanul xel—a;epdn Apn;S 3!wouo33 Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas The TIRZ value increase projections are then applied to Tortuga Dunes Value Schedule the projected 2009 certified assessed value for TIRZ #2 for each property class. The Tortuga Dunes projected Projected value additions (see table at right) are then introduced; Assessed Incremental the negative increment in 2010 is due to dedication of Tax Year Value Value Added existing taxable property for public use, taking its 2009 $18,640,008 taxable value to zero. 2010 $17,720,205 $(919,803) The result of these calculations is a projected taxable 2011 $51,224,715 $33,504,510 value and value increment for the TIRZ, provided in the 2012 $66,946,125 $15,721,410 table on the next page. The assessed value increments for each jurisdiction are based on their respective base 2013 $77,890,140 $10,944,015 year taxable values as shown in the table below. 2014 $83,900,000 $6,009,860 Source: Forestar Participating Jurisdiction Base Year Values Base Year Jurisdiction Taxable Value City of Corpus Christi $81,732,341 Nueces County $81,581,144 Nueces County Hospital District $81,732,341 Del Mar Junior College $82,513,867 Farm to Market Road District $82,708,597 Sources: City of Corpus Christi and Nueces County Appraisal District CDS I Spillette 22 Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas Project TIRZ#2 Assessed Value by Participating Jurisdiction PROJECTED ASSESSED VALUE City of Corpus Nueces County Del Mar Jr. Farm to Market Tax Year Christi Nueces County Hospital District College Road 2009 380,825,433 377,027,804 377,027,804 382,757,294 376,776,909 2010 320,245,351 317,347,217 317,347,217 321,720,450 317,163,481 2011 307,194,087 304,974,332 304,974,332 308,324,444 304,840,076 2012 338,655,659 336,353,086 336,353,086 339,828,313 336,214,560 2013 366,192,055 363,803,032 363,803,032 367,408,871 363,660,078 2014 389,702,663 387,223,386 387,223,386 390,965,597 387,075,840 2015 411,435,230 408,861,715 408,861,715 412,746,329 408,709,405 2016 486,191,313 483,312,318 483,312,318 487,658,942 483,142,951 2017 570,745,210 567,519,915 567,519,915 572,390,395 567,331,227 2018 666,451,157 662,832,970 662,832,970 668,297,914 662,622,374 2019 774,856,231 770,791,945 770,791,945 776,931,996 770,556,480 2020 897,728,294 893,157,125 893,157,125 900,064,425 892,893,404 2021 1,037,088,042 1,031,940,526 1,031,940,526 1,039,720,393 1,031,644,672 2022 1,195,245,758 1,189,442,482 1,189,442,482 1,198,215,334 1,189,110,054 ASSESSED VALUE INCREMENT Tax Year City of Corpus Nueces County Del Mar Jr. Farm to Market Christi Nueces County Hospital District College Road 2009 298,311,566 295,295,463 295,295,463 300,048,697 295,195,765 2010 237,731,484 235,614,876 235,614,876 239,011,853 235,582,337 2011 224,680,220 223,241,991 223,241,991 225,615,847 223,258,932 2012 256,141,792 254,620,745 254,620,745 257,119,716 254,633,416 2013 283,678,188 282,070,691 282,070,691 284,700,274 282,078,934 2014 307,188,796 305,491,045 305,491,045 308,257,000 305,494,696 2015 328,921,363 327,129,374 327,129,374 330,037,732 327,128,261 2016 403,677,446 401,579,977 401,579,977 404,950,345 401,561,807 2017 488,231,343 485,787,574 485,787,574 489,681,798 485,750,083 2018 583,937,290 581,100,629 581,100,629 585,589,317 581,041,230 2019 692,342,364 689,059,604 689,059,604 694,223,399 688,975,336 2020 815,214,427 811,424,784 811,424,784 817,355,828 811,312,260 2021 954,574,175 950,208,185 950,208,185 957,011,796 950,063,528 2022 1,112,731,891 1,107,710,141 1,107,710,141 1,115,506,737 1,107,528,910 Source: CDS I Spillette CDS I Spillette 23 Economic Study Update—Tax Increment Reinvestment Zone#2 Corpus Christi,Texas CDS I Spillette 1250 Wood Branch Park Drive, Suite 100 Houston, TX 77079 281.582.0847 (Phone) 713.465.6975 (Fax) www.cdsmr.com CDS I Spillette 24