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HomeMy WebLinkAbout17771 ORD - 08/10/1983 (2)4 AN ORDINANCE APPROVING THE PROJECT PLAN OF THE REINVESTMENT ZONE NUMBER ONE, CITY OF CORPUS CHRISTI, TEXAS. WHEREAS, on December 29, 1982, the City Council of the City of Corpus Christi, Texas established by ordinance the "Reinvestment Zone Number One, City of Corpus Christi, Texas" (the "Zone") pursuant to the provisions of the Tax Increment Financing Act of 1981, V.A.T.C.S. Article 1066e (the "Act"); and WHEREAS, the Board of Directors of the Zone have duly prepared and adopted a project plan for the Zone pursuant to the Act which includes a description of the kind, number and location of all proposed public works or public improvements in the Zone, an economic feasibility study, a detailed list of estimated project costs, a description of the methods of financing all estimated project costs, and certain other information required by the Act; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Council of the City of Corpus Christi, Texas hereby approves the project plan for the Zone as adopted by the Board of Directors of the Zone, a copy of which project plan is attached hereto as Exhibit "A" and incorporated herein by reference. SECTION 2. That the City Council finds and determines that said project plan is feasible and conforms to the master plan for such development, to wit, the "Bayfront Plan" of the City of Corpus Christi, Texas. 17771 SEP 2 81!34 MICROFILMED IviitAuriuulEU PROJECT for :. PLAN CORPUS .CHR,ISTI REINVESTMENT ZONE NO.1 CORPUS CHRISTI, TEXAS PROJECT PLAN for CORPUS CHRISTI REINVESTMENT ZONE NO. 1 CORPUS CHRISTI, TEXAS Prepared by Trkla, Pettigrew, Alien & Payne with assistance from City Staff of the City of Corpus Christi May, 1983 yoril 0 TABLE OF CONTENTS Inside Title Page i Table of Contents iii List of Figures iv Introduction v 1. The Bayfront Plan: Framework for Reinvestment Zone No. 1 1 2. Existing Uses and Conditions 12 3. Proposed Public Works and Public Improvements 14 4. Economic Feasibility Study 20 • Applicable Tax Rate 20 • Proposed Private Improvements 22 • Estimated Levels of Tax Increment Production 24 • Estimated Project Costs 29 • Feasibility Analysis: Tax Increment Financing 34 • Estimated Nonproject Costs 35 • Methods of Financing Nonproject Costs 39 5. Proposed Changes: Plans and Ordinances 41 6. Method of Relocating Displaced Persons 42 7. Amendments to Project Plan 43 APPENDICES 1. Boundary Description 2. Summary of Existing Improved Properties in Subzone B 3. Maps ii LIST OF FIGURES AND TABLES Figure 1, Boundary Map Appendix 3 Figure 2, Bayfront Plan Appendix 3 Figure 3, Existing Land Use Appendix 3 Figure 4, Exterior Condition Survey Appendix 3 Figure 5, Existing Zoning Appendix 3 Figure 6, Proposed Private Improvements Appendix 3 Table 1, Proposed Public Works and Improvements 15 Table 2, Estimated Tax Increment Production (Level 1) 25 Table 3, Estimated Tax Increment Production (Level 2) 27 Table 4, Estimated Project Costs (Category 1) 32 Table 5, Estimated Project Costs (Category 2) 33 Table 6, Estimated Non -Project Costs 36 iii INTRODUCTION On December 29, 1982, the City Council of the City of Corpus Christi designated a portion of the city as a "rein- vestment zone,' pursuant to the Tax Increment Financing Act of 1981.2 This area, officially designated as Corpus Christi Reinvestment Zone No. 1, generally includes the bayfront area consisting of the Corpus Christi Beach Area and an area in and along the central business district south to approximately Ayers Street. A detailed boundary description is set forth in Appendix 1. See also Figure 1, Boundary Map, in Appendix 3. This area has recently been the subject of an intensive study by local staff, leading to the preparation of the "Bayfront Plan." After a staged review and adoption process by the Corpus Christi Planning Commission and City Council, the Bayfront Plan was officially adopted on December 29, 1982.3 The reinvestment zone was created by the City Council to alleviate excessive or disproportionate expenditures of public funds or maintenance of public services and facilities in an area where it is considered necessary to promote development or redevelopment. This was done after: • A public hearing was held on the adoption of the zone (held on December 15, 1982). • It was shown that the area is characterized by conditions which substantially impair or arrest the sound growth of the city, retard the provision of housing accommodations, or constitute an economic or social liability and be a menace to the public health, safety, morals or welfare. 1. Ordinance No. 17418. 2. Article 1066e, Revised Civil Statutes of Texas, 1925, as amended. 3. Ordinance No. 17419. iv Following the designation of the reinvestment zone, the members of the City Council along with one representative each from Nueces County, the Corpus Christi Junior College District, and the Corpus Christi Independent School District, were named as members of the board of directors for the rein- vestment zone. The principal power of the board of directors is to make recommendations to the City Council concerning admi- nistration of the Tax Increment Financing Act in the reinvestment zone. Additionally, the board of directors must prepare and adopt a project plan for the reinvestment zone and must submit the plan to the City Council. The plan must include:4 • A statement listing the kind, number and location of all proposed public works or public improvements in the zone. • An economic feasibility study. • A detailed list of estimated project costs. • A description of the methods of financing all estimated project costs and the time when related costs or monetary obligations are to be incurred. • A map showing existing uses and conditions of real property in the zone. • A map showing proposed improvements to and uses of real property in the zone. • Proposed changes of zoning ordinances, the master plan, building codes, and city ordinances. • A list of estimated nonproject costs. • A statement of a method of relocating persons to be displaced as a result of implementation of the plan. The City Council of the City of Corpus Christi must approve the project plan after its adoption by the board of directors of the reinvestment zone. The approval must be by ordinance that finds that the plan is feasible and that it conforms to the master plan of the city. Based on this requirement, the Area Development Committee, which has previously partially funded the completion of the Bayfront Plan, agreed to fund the continued service of the City's tax increment financing consultant, Trkla, Pettigrew, Allen & Payne, who, with the assistance of the staff of the City of Corpus Christi, prepared this project plan. 4. Article 1066e, 2E. cit., Section 8(a). v 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 THE BAYFRONT PLAN: FRAMEWORK FOR REINVESTMENT ZONE NO. 1 The framework for revitalization of the reinvestment zone is the Corpus Christi Bayfront Plan, as revised and adopted on December 29, 1982. This plan is presented below. See also Figure 2, Bayfront Plan, in Appendix 3. PURPOSE AND INTENT In recent years Americans have been discovering the delightful city environments of Europe and other world locations. In America itself, there is a growing roster of good examples of urban centers where places to live, work and play have been built in surroundings of beauty and delight. Cities like San Francisco and San Antonio have gained international recognition for the way they have capitalized on the amenities of their location to create places of great charm for visitors and residents alike. The worldwide image of these cities as beautiful places to live and work as well as visit has increased their attractiveness for all types of economic development. The City of Corpus Christi has an excellent opportunity to create a similar image for itself with proper treatment of its Bayfront. Unlike most waterfront cities, Corpus Christi is able to capitalize on its Bayfront without first tearing down long established development. The basic waterfront environment of the city is generally in excellent condition. Some of its sections, however, are underutilized and therefore open to the kind of new development able to accommodate many more people living, working, and visiting in the urban waterfront zone. All of the urban waterfront zone should be accessible to all individuals, with emphasis on accessibility for handicapped individuals. In response to this opportunity, the Bayfront Plan takes a direction beyond merely "fixing up" those portions of the waterfront which could be made to look prettier. It is aimed at suggesting strategies for major development which will fit with steps already undertaken to permit the City of Corpus Christi to beneficially utilize its most unique asset --its magnificent waterfront --while at the same time preserving and enhancing existing features and protecting Port -related operations. This document draws upon numerous planning and engineer- ing studies dealing with the Bayfront for information on opportunities, constraints and specific recommendations. In this regard, it is a summary document which carefully selects those proposals which work best together along with existing improvements, to most beneficially utilize the Bayfront. This plan is intended for use as a constant reference, allowing development of the Bayfront to be scheduled on a project -by -project basis involving a wide range of public and private organizations, while maintaining the continuity of compliance with the overall Bayfront Plan. It is meant as a clear statement that money spent on recom- mended projects is an investment in an ongoing effort to reach definable goals in the Bayfront area. The full implementation of this plan will require the use of a variety of financing techniques, which may include utiliz- ing private sector capital and expertise to achieve public goals, as well as the use of public sources of funding such as General Obligation Bonds, Tax Increment Financing, Industrial Revenue Bonds, and Multi -Family Tax Exempt Financing. No matter what means of financing are employed, the Bayfront Plan will help ensure that those involved in the design and implementation of projects will not lose sight of the overall public goals for the development of the Bayfront area. The plan should be reviewed on a continuing basis and modification to the plan should be made to reflect changing community interests and needs in the future. The organization of the document first gives an overview of the opportunities and constraints that are characteristic of the four major sub -units of the Bayfront area: 1) the Central Business District, 2) Shoreline Boulevard and Ocean Drive, 3) the marina area, and 4) Corpus Christi Beach. This section is followed by the goals which derive from the opportunities and constraints, and recommended policies and strategies to achieve these goals. Figure 2, contained in Appendix 3, is intended to illustrate in a conceptual manner the basic elements of the plan and how they relate to one another. CENTRAL BUSINESS DISTRICT The Central Business District is in a position to benefit greatly from Bayfront development, especially Marina developments, if it can be strongly connected with the new and existing activities. This connection will be strongest if it develops an interdependent relationship with the Marina area, supplying motivation for Marina users to frequent the downtown area. In order to establish this connection, two constraints must be resolved. First, the separating barrier effect of Shoreline Boulevard must be overcome, and, second, the -2- ,1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 downtown area itself must establish its own positive image and identity, different from but strongly related to the Bayfront area. This will mean continued renovation and rejuvenation of downtown businesses, parks, and streets in a manner which helps establish a strong relationship with Bayfront activity. THE PUBLIC SHORELINE The Bayfront area south of the ship channel showcases over three miles of virtually continuous public shoreline that is a symbol of the pride Corpus Christi has in its waterfront heritage. The public shoreline is appropriately anchored by the Bayfront Arts and Science Park which, with its museums, auditorium and convention complex, is the City's cultural center and the catalyst for future shoreline tourist development. Other components of the public shoreline include Magee Beach, Cole Park, the Bayfront open space parks and Shoreline Boulevard with its median parks and landscaping. Shoreline Boulevard, along with its adjoining pedestrian seawall, is the main route of access connecting many of the major Bayfront amenities and developments. All of this points to the potential that Shoreline Boulevard has as a unifying element in the development of Bayfront. In order to attain this potential, the barrier effect caused by the physical separation of the downtown and tourist areas from the waterfront by Shoreline Boulevard with its six lanes of traffic and 160 -foot plus right-of-way must be overcome. Movement of people from one side of the Boulevard to the other at key crossing points must be given unmistakable emphasis, tying the Central Business District and Bayfront together physically as well as visually. In order to attain its ultimate potential as a unifying element, the grand boulevard concept should be expanded throughout the Bayfront, including the major entrance point at I.H. 37 and the Corpus Christi Beach area. This, along with special treatment of the Boulevard's points of terminus, would go a long way toward clearly defining the Bayfront zone and its edges. MARINA The importance of the Marina is recognized in virtually all planning studies commissioned for the area since the construction of the land masses. Its continued growth, vitality, and appeal is a key element in the future of Corpus Christi as a city which openly celebrates its rela- tionship with the water. And yet, the immense potential the Marina offers in terms of recreational opportunity, image and economic vitality is only beginning to be realized. Until recently, little had changed in the Marina in the past quarter of a century except for a gradual decline in the quality of the bulkhead and dredge area. Not only must a program for -3- continuous maintenance be adopted, but the Marina must grow and intensify in use if it is to serve as a catalyst to other public and private investment in the Bayfront. Intensification of use and physical growth of the Marina can occur only if the problems which have historically blocked such development can be overcome. The major obstacle to intensified and varied use has been the fear of increased automobile congestion on the land masses. This fear is based on the long accepted assumption that the T and L heads and their respective uses must be self-sufficient in parking. The cost of this assumption is monumental. The land masses total approximately 18 acres of what has been described as the most expensive, in terms of land value, surface parking lots on the Gulf Coast. Higher still is the cost of the opportunity lost by maintaining these superb water sur- rounded environments for parking rather than for a multitude of attractive public and commercial uses for the enjoyment of visitors and residents of Corpus Christi. It is paramount to the successful accommodation of conventioneers and the linking and revitalization of the downtown that a general intensification of use, including a major public or semi-public facility occurs on the land masses in the short term. The utilization of future and existing downtown parking facilities with convenient transportation and pedestrian access across Shoreline Boulevard to the Marina would greatly relieve any congestion problems and would encourage a mutually beneficial interrelationship between downtown and the Marina area. The major obstacle to the physical expansion of the Marina is the means of financing construction and maintenance of new facilities. While at least part of the cost of a maintenance program can be offset by encouraging revenue generating activities, it is clear that some kind of joint public/private participation and funding will be necessary for any significant expansion projects. Recently, there have been encouraging signs that the private sector recog- nizes the feasibility and desirability of locating public and semi-publc facilities on existing and new land masses. If this interest can be extended to include private sector involvement in the construction of new land masses and Marina dredging, while maintaining the right of public access, then the Marina can begin to attain its full potential as the hub of Bayfront activity and the catalyst to further edconomic development in the Bayfront and the City as a whole. CORPUS CHRISTI BEACH With its one and one-half mile sandy beach just across the ship channel from the Convention Center and downtown, its complete service facilities, and its abundance of redeveloping land to add to the adjoining lodging and com- mercial development, Corpus Christi Beach has the potential -4- to become a truly unique and distinctive urban beach, unmatched along the Gulf Coast. The main obstacle standing in the way of this potential is the physical and visual isolation of Corpus Christi Beach caused ironically by the relatively narrrow ship channel. The Harbor Bridge itself is not enough to connect the Beach with the rest of the City. It is critical to the future development of Corpus Christi Beach that it be strongly related to the rest of the Bayfront. This can be accomplished by improving physical and visual access to the full length of the Beach, by pro- viding more convenient transportation links between the Beach and the other major Bayfront attractions, by promoting activities which encourage visitors to frequent both sides of the channel, and by expanding unifying elements of the Bayfront to Corpus Christi Beach. As with the other subunits of the Bayfront, continual maintenance must play a major role in the development of the Beach for it to attain its full potential. This must include measures to prevent the gradual erosion of the Beach itself. BAYFRONT POLICIES AND DEVELOPMENT STRATEGIES I. CENTRAL BUSINESS DISTRICT Goal A: To encourage and assist high-density development in the Central Business District consisting of a mixture of professional offices, motels, hotels, housing and specialty shops and restaurants. Specific policies and strategies include: 1) Encourage and assist rehabilitation efforts in appropriate locations, especially Lower Broadway and Water Streets. 2) Housing and business uses should be encouraged in a variety of types and higher density. 3) North of the business core, extending from I.H. 37 to the Bayfront Science Park, a small neighborhood of high-density residence and commerce is proposed. Goal B: Monitor and improve where necessary both pedestrian and vehicular movement in the Central Business District, including promotion of parking facilities. -5- Specific policies and strategies include: 1) Create a strong visual and pedestrian connection from the bay to the bluff along Peoples Street. 2) Improve existing streets, as warranted, and develop a solution to the complicated movements between uptown and downtown for pedestrians and motorists alike. 3) Utilize a shuttle system connecting downtown parking facilities to existing and proposed Bayfront attractions. 4) Give clear emphasis to pedestrian . crossings at key points of connection between downtown and the Bayfront. 5) Encouragement development of downtown uses which provide goods and services for Bayfront users. 6) Emphasize the Chaparral Street connection to the Bayfront Arts and Science Park with special landscape treatment, coordinated with overall landscaping plans in the Park itself. II. PUBLIC SHORELINE Goal A: Improve the overall appearance and access to Shoreline Boulevard and Ocean Drive as a major front door to the City. Specific policies and strategies include: 1) Pedestrian plaza/crossing at Peoples Street and other key crossing points along Shoreline• Boulevard. 2) Landscape planting and sculpture along Shoreline Boulevard. 3) Design and placement of a standardized system of lighting, benches, bollards, trash receptacles, signing, including the system into the Bayfront Arts and Science Park. 4) Symbolic gateway arrival points along I.H. 37 and Twigg Street between Mesquite and Shoreline Boulevard, and Agnes and -6- Laredo Streets corridor areas along Kinney Street and Cooper's Alley from North Lower Broadway to Shoreline. 5) Expansion of transportation systems along Shoreline Boulevard with a continuing review of the viability of vehicular and pedestrian movement along and across Shoreline Boulevard with emphasis given to pedestrian access to the Bayfront and the reduction of pedestrian and vehicular conflict. 6) Protect and enhance the scenic value of Ocean Drive to its fullest. 7) Provide exclusive jogging and bike paths in Cole Park. 8) Maintain and enhance the Bayfront open space parks along the full length of Ocean Drive including the area in the vicinity of Ward Island. 9) Continued maintenance and renourishment of Magee Beach as the major tourist beach south of the ship channel. 10) Develop and maintain seawall with intermediate resting platforms to allow people to walk out. Lighting on seawall is desirable to increase nighttime activity. 11) Maintain the one -mile minimum distance from the shoreline for any drilling operations. 12) Permit street vendors along the seawall subject to stringent guidelines for such activity. Goal S: To promote Shoreline Boulevard as the principal location of hotel/motel complexes, while attempting to maintain visual corridors for property located to the west of Shoreline. Specific policies and strategies include: 1) Encourage the development of the west side of Shoreline Boulevard as a hotel, motel, tourist complex, maintaining views to the bay through the use of visual corridors. -7- 2) Continued development of the Bayfront Arts and Science Park as the cultural center of the city and appropriate focal point for Shoreline Boulevard. 3) Full development of the designated historical district in the Bayfront Arts and Science Park incorporating the multi -cultural center and plaza. III. MARINA Goal A: To encourage and assist in the creation of additional land masses in the Marina, primarily for commercial and public activities. Specific policies and strategies include: 1) Induce a new land mass north of the Peoples Street T -Head. 2) Encourage a public use at the south end of the south basin. 3) Reserve the north basin area for ultimate use for additional land masses and public boat slips. Goal B: Expand activity in the Marina including addi- tional slips and commercial activity. Specific policies and strategies include: 1) Small boat sailing located in south basin. 2) Water taxi services should be implemented. 3) Development of a public/private activity center in the Marina, which includes tour boats, party boats, restaurants, waterfront shops, a maritime museum and aquarium. 4) City adoption of more efficient standards and arrangement of boat slip construction. Approximately 400 to 450 new slips could be accommodated on the two T -Heads and the L -Head without requiring new construction other than the finger piers and slips themselves. 5) Development of an aquarium on the Peoples Street T -Head. • -8- 6) There need to be intermediate events at several points aimed at providing a conti- nuity of life style and physical interaction between people and places (restaurants, shops over water, landscaping with a variety of plants, and lights, benches and shaded areas). 7) Extend lighting and walkway on the breakwater from McGee Beach to the marina fairway opening. 8) Establish a continual maintenance program for bulkheads and Marina dredging. IV. CORPUS CHRISTI BEACH Goal A: To encourage and assist in the development of Corpus Christi Beach primarily for hotel/motel development and high density housing along with attendant public facilities. Specific policies and strategies include: 1) Encourage development of tourist -oriented complex at south end of Corpus Christi Beach where the remnants of the old commerical - tourist development remain today. 2) Encourage medium- to high-density residen- tial uses for bulk of remaining property, utilizing small block pattern of streets. Enable properties which are not situated on the Bayfront visual access to the unique bayside/beach environment through the use of visual corridors. 3) Support development of marinas at Rincon Point and between the Ship Channel and the north breakwater. 4) Development of existing parks, and the development of tourist facilities to include sites for motel or hotel opera- tions, restaurants, cruise boats, fishing piers, etc. 5) Provide a sand retention facility with lighted fishing pier at north end of Corpus Christi Beach. Goal B: To improve public access, physically and visually, to the full length of the beach and to provide better circulation patterns in the beach area, including stronger transportation links across the ship channel. -9- Specific policies and strategies include: 1) Develop public -owned area along ship channel opening as public park. 2) Develop adequate public access to parking areas in a minimum of seven specific sites along Corpus Christi Beach adjacent to and on the sand beach. These access sites would be designed in general as follows: large parking areas together with full restrooms and/or facilities at the south end, middle, and north end of the beach. In the area between the south end and middle and the middle and north end, at least two additional access sites/parking areas be built up to and on the sand beach in a design configuration perpendicular to the water. 3) Provide mini -parks at some access points along the Beach with public shower facilities to emphasize the public ownership of the entire length of the Beach. 4) Develop a continuous pedestrian walk/jogging area with light landscaping along the full length of the beach to tie the various faci- lities together, provide ease of movement along the beach, and to clearly define the public beach from private property. 5) Establish a water taxi service and/or other pedestrian transportation across the channel to connect the Beach facilities with the rest of the Bayfront and downtown area. 6) Expand the grand boulevard concept to Corpus Christi Beach by developing the old railroad right-of-way as a green boulevard to provide strong visual unity and efficient circulation in the area. 7) Connection of Bayfront beach to Nueces Bay -- acquire Bayfront parcel across the northern end of the peninsula and under the viaduct to link the public zone from Corpus Christi Bay to Nueces Bay and the possible marina site west of Highway 181. 8) Development of Corpus Christi Beach Park on north end of terminus of Corpus Christi Beach recreation area. -10- 9) Provide a shallow draft boat launching facility on Corpus Christi Beach in con- junction with one of the parking/access points along the Beach. 10) In order to assist maintenance of the Beach, strictly enforce the ban on glass containers and place coordinated trash receptacles at all access points and along walkway/jogging path along the Beach. -11- 2 EXISTING USES AND CONDITIONS Figures 3, 4 and 5, contained in Appendix 3 of this project plan, describe in map form the existing uses and conditions of real property in the reinvestment zone. Figure 3, Existing Land Use, shows the existing land - use pattern for each block within the zone. Major land -use categories shown include residential, commercial, industrial, public, and undeveloped. Key land -use problems include: • There are large tracts of vacant, undeveloped, and underdeveloped lands in the reinvestment zone. This underutiliziation detracts from the economic and physical viability of the area and causes on a cost -revenue basis excessive and disproportionate expenditures of public funds for maintenance of public services and facilities. • There are areas evidencing substantial land -use incompatibility, such as the area north of Inter- state 37 and west of Water Street. Within this area, older single-family residences are situated adjacent to several heavy industrial uses such as chemical processing companies and numerous automotive and boat repair shops. The older residential area, once called 'Old Irish Town", which dates back to the later part of the 19th century, has been giving way over the years to small industrial and commerical uses. Also, there are many older buildings in the downtown portion of the zone which are in mixed usage. Figure 4, Exterior Condition Survey, shows the extent of deterioration of buildings by block within the reinvestment zone. Surveys conducted in November, 1982, resulted in rating each individual building within the zone in one of four building categories, based on the combination of defects found in various primary and secondary building components. These categories and the basis for each rating are: • Sound. No defects. • Deficient, minor defects. Evidence of one or more minor defects in any of the primary components or in the combined secondary components. -12- • Deficient, major defects. Evidence of a critical defect in any of the primary components or in the combined secondary components, but less than two critical defects. • Substandard. Evidence of two or more major ratings in either the primary components or two major ratings in one primary component and in the combined secondary components. Primary structural components include the basic elements of any building: foundation walls and girders, exterior walls, roof and roof structure. Secondary structural components are those added to the primary structural components and are neces- sary parts of a building, including porches and steps, windows and window units, doors and door units, and chimneys. The exterior surveys show that a substantial number of substandard, slum, deteriorated, or deteriorating structures exist in and are reasonably distributed throughout the reinvestment zone area. Of 615 total buildings in the zone, 17.5 percent of the buildings are considered substandard, 27.4 percent are considered major deficient, 29.5 percent are considered minor deficient, and the remaining 25.6 per- cent are considered sound. Figure 4 shows in percentage categories the extent of minor deficient, major deficient and substandard buildings in each block. Minor deficient and major deficient builldings are considered to be the same as deteriorating buildings as referenced in the Texas Tax Increment Financing Act; substandard buildings are the same as deteriorated buildings. The words "building" and "structure" are presumed to be interchangeable. Figure 5, Existing Zoning, shows the permitted zoning by district within the reinvestment zone. As the map indi- cates, there are fifteen discrete zoning district classifi- cations which are found withn the reinvestment zone. Other conditions of real property found within the reinvestment zone include deterioration of site or other improvements, faulty lot layout, predominance of a defective or inadequate sidewalk or street layout, defective or unusual conditions of title, unsanitary or unsafe condi- tions, and the existence of conditions which endanger life or property by fire or other causes. These factors and conditions are reasonably distributed throughout the reinvestment zone. -13- 3 PROPOSED PUBLIC WORKS AND PUBLIC IMPROVEMENTS Public investments to be made in the reinvestment zone will be primarily in the installation of public improvements and various supporting facilities. City staff have analyzed the public improvements needs of the reinvestment zone and have identified specific projects which are necessary to the strengthening and revitalization of the area. Additionally, preliminary cost estimates have been made for each project, providing a reasonable basis for determining the scope or magnitude of the total public investment which might be anticipated. The estimated total preliminary cost of public works and improvements is $87,419,000, broken down in general categories as follows: o roadway/intersection improvements o pedestrian improvements o landscaping o parking improvements o shorelines/marina improvements o signalization o park improvements o public buildings o lighting o demolition o utilities o public/private partnerships or privately - contributed improvements $ 7,169,000 1,654000 2,300,000 7,750,000 15,775,000 2,100,000 2,900,000 11,375,000 425,000 425,000 2,300,000 33,250,000 TOTAL $ 87,419,000 (1983 dollars) Table 1, Proposed Public Works and Improvements, lists the kind, number and location of all proposed public works and public improvements in the reinvestment zone, along with their estimated construction periods (projects are listed chronolo- gically and not in order of priority). As indicated in the table, there are 70 specific projects proposed for installation in the 20 -year period 1983 to 2002. -14- Table 1, Proposed Public Works and Improvements ROADWAY/INTERSECTION IMPROVEMENTS: Asphalt overlay on T- and L -Head roadways: restoration of curbing $ 250,000 1983-84 Lawrence Street realignment at T -Head 150,000 1984-85 Agnes/Kinney realignment, landscaped entryway 650,000 1984-87 Downtown streets asphalt overlay 650,000 1985-86 Mesquite and Water Streets intersection improvements 300,000 1986-87 Realignment of Ocean Drive and Water Street intersection 1,000,000 1986-87 Vehicular traffic improvements at bluff 1,600,000 1986-95 Timon/Surfside Street connection with landscaping 669,000 1990-93 Timon/Surfside Street°looped boulevard improvements (north of Breaker Street) 1,500,000 1990-95 Shoreline Boulevard overlay 400,000 2000-02 TOTAL $ 7,169,000 PEDESTRIAN IMPROVEMENTS: Peoples Street pedestrian crossing $ 200,000 1983-84 Cooper's Alley/L-Head pedestrian crossing 225,000 1984-85 Lawrence Street T -Head pedestrian crossing 225,000 1984-85 McGee Beach/Park Avenue pedestrian crossing 200,000 1985-86 Pedestrian walkway on Corpus Christi Beach 350,000 1985-86 Twigg Street/new mass pedestrian crossing 200,000 1986-87 Pedestrian connection at Bluff and Peoples/ Schatzel Streets 250,000 1990-91 TOTAL $ 1,650,000 -15- Table 1, Proposed Public Works and Improvements (cont'd.) LANDSCAPING: IH -37 Park landscaping and fountain $ 350,000 1983-85 Shoreline Boulevard landscaping 750,000 1983-88 Twigg Street landscaping 300,000 1987-88 Chaparral Street landscaping 300,000 1988-89 Restoration of bluff between Agnes and Park Streets 600,000 1994-96 TOTAL $ 2,300,000 PARKING IMPROVEMENTS: Downtown parking project Corpus Christi Beach middle parking area Corpus Christi Beach north to middle two parking areas Corpus Christi Beach south to middle two parking areas Convention Center parking garage $ 900,000 1983-84 300,000 1983-84 300,000 1984-85 250,000 1985-86 6,000,000 1987-89 TOTAL $ 7,750,000 SHORELINE/MARINA IMPROVEMENTS: Five seawall overlooks $ 250,000 1984-89 Corpus Christi Beach shallow draft boat launching facilities 50,000 1985 Construction of sand retention facility Corpus Christi Beach 1,000,000 1985-86 Maintenance dredging of Marina 250,000 1985-86 New land mass north of Peoples Street T -Head 3,500,000 1985-87 Barge dock improvements including renovation 200,000 1983-90 -16- Table 1, Proposed Public Works and Improvements (contd.) SHORELINE/MARINA IMPROVEMENTS (cont'd.) McGee Beach re -nourishment $ 200,000 1986-87 Restoration of T- and L -Head bulkheading 2,700,000 1988-90 Construction of 400 to 500 new slips 1,600,000 1986-88 Construction of ten water taxi terminals 500,000 1986-90 Two additional north small land masses 3,000,000 1986-95 Breakwater concrete cap extension with lighting 725,000 1987-88 Corpus Christi Beach landscaping with berms 100,000 1987-88 South basin small land mass with slips 1,700,000 1990-94 TOTAL $15,775,000 SIGNALIZATION PROJECT: Downtown signalization project $ 600,000 1983-87 Shoreline Boulevard signals, lighting, street furniture 1,500,000 1988-93 TOTAL $ 2,100,000 PARK IMPROVEMENTS: Renovation of South Channel Park Vest-pocket park at LaRetama Plaza Artesian Park Renovation North Channel Park development with parking Cole Park bike and jogging paths Corpus Christi Beach park improvements TOTAL -17- $ 150,000 1985-86 500,000 1986-87 500,000 1987-88 400,000 1987-88 350,000 1988-91 1,000,000 1989-91 $ 2,900,000 Table 1, Proposed Public Works and Improvements (cont'd.) PUBLIC BUILDINGS: Development of Multi -Cultural Center, plaza, landscaping $ 1,200,000 Remove architectural barriers in public buildings 75,000 Memorial Coliseum ticket office and landscaping 100,000 Construct 12,000 -seat arena, demolish Memorial Coliseum 1983-87 1983-88 1985-86 10,000,000 1995-2000 TOTAL $11,375,000 LIGHTING: Lighting on existing Corpus Christi Beach breakwater $ 150,000 1987-88 Lighting on Corpus Christi Beach, North Shoreline, Timon/Surfside 275,000 1988-92 TOTAL $ 425,000 DEMOLITION: Demolition of public buildings on Shoreline Demolition of old central library Demolition of Gibbons Building $ 200,000 1984-86 200,000 1985-86 25,000 1987 TOTAL $ 425,000 UTILITIES: Upgrading of utilities in public Shoreline area Upgrading of utilities in Central Business District area Upgrading of utilities on existing land masses $ 1,000,000 1983-90 1,000,000 1986-95 300,000 1987-88 TOTAL $ 2,300,000 • -18- Table 1, Proposed Public Works and Improvements (cont'd.) PUBLIC/PRIVATE PARTNERSHIPS OR PRIVATELY -CONTRIBUTED IMPROVEMENTS: Brown Pelican Sculpture Fountain $ 200,000 1983-84 Marina Office/Patio Bar and Grill 700,000 1983-84 Floating Barge Restaurant 750,000 1984-85 New Corpus Christi Museum Wing 1,500,000 1984-86 Barge Dock Development 300,000 1984-90 Bayfront Arts/Science Park Water Garden 800,000 1985-87 Aquarium 3,000,000 1986-87 New Land Mass Commercial Development 25,000,000 1987-90 Museum of Oriental Cultures Building 1,000,000 1987-91 TOTAL $33,250,000 GRAND TOTAL $87,419,000 -19- 4 ECONOMIC FEASIBILITY STUDY The principal use of tax increment financing as described in the Texas Tax Increment Financing Act is to "promote deve- lopment or redevelopment" within an eligible reinvestment zone. This is predicated on the premise that, within the zone, condi- tions exist which may impair or arrest the sound growth of the city, and that tax increment financing may be used to defray the costs of public improvements or other public investments made to overcome these conditions and thus promote sound development or redevelopment in the area. This section presents the analysis and findings showing the feasibility of using tax increment financing for such public investments. This feasibility study includes (a) an analysis of the applicable tax rate structure, (b) an identification of proposed private improvements which are to provide the base for the production of tax increments, (c) estimates of various levels of tax increment production based on alternative captured value scenarios, (d) estimated project costs supported by various levels of tax increment produc- tion, (e) feasibility analysis of tax increment financing, (f) estimates of nonproject costs, and (g) methods of financing nonproject costs. TAX RATE The 1982 tax rate applicable to the reinvestment zone is 1.79855 (or approximately $1.80) per $100 of assessed valuation, broken down as follows: City of Corpus Christi .568 Corpus Christi Independent School District .7412 Corpus CHristi Junior College District .08907 Nueces County (includes Hospital District) .40028 TOTAL 1.79855 Currently, the City of Corpus Christi collects the taxes for the City, for the Corpus Christi Independent School District, and for the Corpus Christi Junior College District. Nueces County collects its own taxes. -20- Applying the 1982 tax rate of $1.799 (rounded) per $100 assessed valuation to the 1982 total appraised value of properties within the reinvestment zone, property taxes of $2,979,924 5 are generated. This amount produced from the tax increment base (or the "frozen base") will continue to be allocated and paid over to the taxing units levying taxes in the zone area, based on their respective tax rate shares. It is important to note that the application of the tax rate in the reinvestment zone may be modified by agreement with the various taxing units. The Texas Tax Increment Financing Act provides that the City and each other taxing unit may share in the tax increment allocation so long as the sharing basis is established by contract prior to the designation of the area as a reinvestment zone.6 The City of Corpus Christi, acting on behalf of the reinvestment zone, entered into contracts with the City of Corpus Christi, the Corpus Christi Junior College District, the County of Nueces, and the Corpus Christi Independent School District prior to passage of the reinvestment zone ordinance on December 29, 1982. These contracts established the basis for the participation of each taxing unit in the tax increment allocation, as follows: 1. The reinvestment zone was divided into subzones A and B with a tax increment sharing plan established for each subzone. These subzones are shown on Figure 1, Boundary Map, in Appendix 3. 2. A tax increment sharing plan was established for each respective subzone, as follows: a. Subzone A (1) The CCISD, the Del Mar Junior College District, and the Nueces County Hospital District would be held harmless and would receive all appreciation on existing properties as well as new construction and appreciation thereon. (2) Both the City and the County would receive increases in appreciation of existing property and increases in appreciation of new construction after such new construction has been on the tax rolls for one full year. 5. Based on tax valuation data available in November, 1982. 6. Article 1066e, 2E. cit., Section 10(b)(2). -21- (3) The Reinvestment Zone would receive all new construction at a rate of .8104 per $100 valuation (the current City tax rate of .568 and the County tax rate of .40028 minus Nueces County Hospital District of .15788). b. Subzone B (1) All taxing bodies receive appreciation on unimproved properties and appreciation on new construction after such construction is on the tax rolls for one full year. (2) The Reinvestment Zone receives appreciation on improved properties (those properties for which improvements were in place as of January 1, 1982) and receives all new construction. These contractual arrangements materially affect the tax increment production for the reinvestment zone, as will be shown later in this section. PROPOSED PRIVATE IMPROVEMENTS There are over twenty discrete private development projects proposed or under consideration in the reinvestment zone showing an aggregate appraised value of over $440 million. All of these projects show estimated completion dates within the next four to seven years (by 1990). All of these projects have not yet reached a commitment stage, although virtually all of them appear to be well conceived and possible. Therefore, while it is reasonable to assume that most of this value eventually will be captured and will produce tax increments, only those proposed private developments which are already committed can be identified at this time in this project plan. Those private developments which are committed and under construction are: Construction Private Development Period Estimated Value The Bank of Corpus Christi 1983-84 $ 400,000 Hershey Corpus Christi Hotel 1984-86 35,000,000 Caller -Times Expansion 1983-84 2,262,000 Mann Office Building 1983-84 4,000,000 Marriott Hotel 1984-86 25,000,000 Sandy Shore Motel Expansion 1983-84 7,000,000 Pagenkopf/New Motel 1983-84 500,000 Sea Treasures Retail Bldg. 1983 127,000 Marina Office/Restaurant 1983-84 500,000 Casa Del Mar Motel 1983-84 225,000 TOTAL $75,014,000 -22- smormmemse C@CCCCCCC CCaCCCCCa IMMINEENEI E SMILIMMI e clat a CCCCeIl is .�'amus.1 �,�.. The Hershey Carpus Christi Hotel is a 19 -story bol protect located on the black df Shoreline, Mann, Wetter and Twigg Streets. Cakrstrnction of the 486 -room hotel began in Apnl 1983 and is scheduled for completion in September 1984. = - The Corpus Christi Marriott Hotel €- _ _ -,•- _ is a 350 -room, 18 -story budding 1 1 f-' i' _ _ ., located on Shoreline Boulevard 411 t _ -- '- _ between Taylor and Starr Streets. i¢ ;..� " }� -1 '4;i; Construction of the hotel began in March 1983 and is scheduled for completion in April 1984. The locations of these development project improvements are shown on Figure 6, Proposed Private Improvements, in Appendix 3. The estimated values are based on information available at the time of this writing. Because each of these projects is nearing the development stage, more reliable estimates of their respective values should be available within the next months. The values shown here are adequate for purposes of this feasibility analysis, however. ESTIMATED LEVELS OF TAX INCREMENT PRODUCTION The tax increments are the property taxes produced yearly during the life of the reinvestment zone on the "captured appraised value." The "captured appraised value" is, in turn, the appraised value of taxable real property within the rein- vestment zone which exceeds its tax increment base. The purpose of this section is to estimate the "captured appraised value" in the reinvestment zone and the attendant tax increments produced by this captured value. This is difficult to measure with any precision because of the impossibility of predicting what development will take place beyond what is already committed or considered firm. Therefore, for purposes of this analysis, three separate levels of tax increment production are shown. These are: • Level 1 -- Low Range • Level 2 -- Moderate Range • Level 3 -- High Range LEVEL 1 -- LOW RANGE This level represents the most conservative estimate because it is based only on the captured value of the pri- vate developments which are committed or under construction. These are the proposed private improvements referenced in the preceding subsection and exhibited in Figure 6. Also included in this low -range estimate is some reasonable appre- ciation in value on existing improved properties in Subzone B. As indicated in the earlier subsection, the total value of these private developments is estimated at $75,014,000. Table 2, Estimated Tax Increment Production (Level 1), shows the tax increment production from this captured value during the twenty-year period of 1983-2002. In order to take the most conservative position, these assumptions were made in making these projections: 1. No values are shown for the private improvements during the first year of the estimated development period for each. -24- N E- EN M 1 N 1 1 1 I EN I EN- M- N 1 Table 2 Estimated Tax Increment Production (Level 1) A B1 C Captured Captured Appraised Tax Appraised Value Increments Value Subzone A Subzone A Subzone B D2 Tax Increments Subzone B 1983 $ -0- $ -0- $ 50,000 1984 5,500,000 44,572 4,252,000 1985 24,662,000 199,861 8,352,000 1986 51,662,000 418,669 8,352,000 1987 66,662,000 540,229 8,352,000 1988 66,662,000 540,229 8,352,000 1989 66,662,000 540,229 8,352,000 1990 66,662,000 540,229 8,352,000 1991 66,662,000 540,229 8,352,000 1992 66,662,000 540,229 8,352,000 1993 66,662,000 540,229 8,352,000 1994 66,662,000 540,229 8,352,000 1995 66,662,000 540,229 8,352,000 1996 66,662,000 540,229 8,352,000 1997 66,662,000 540,229 8,352,000 1998 66,662,000 540,229 8,352,000 1999 66,662,000 540,229 8,352,000 2000 66,662,000 540,229 8,352,000 2001 66,662,000 540,229 8,352,000 2002 66,662,000 540,229 8,352,000 $ 900 76,494 150,252 150,252 150,252 150,252 150,252 150,252 150,252 150,252 150,252 150,252 150,252 150,252 150,252 150,252 150,252 150,252 150,252 150,252 E3 Tax Increments Through Appreciation $ 41,976 44,075 46,278 48,592 51,022 53,573 53,573 53,573 53,573 53,573 53,573 53,573 53,573 53,573 53,573 53,573 53,573 53,573 53,573 53,573 F4 Total Tax Increments Subzones A&B $ 42,876 165,141 396,391 617,513 741,503 744,054 744,054 744,054 744,054 744,054 744,054 744,054 744,054 744,054 744,054 744,054 744,054 744,054 744,054 744,054 TOTALS $9,306,766 $2,781,930 $1,035,538 $13,124,234 1. Values in Column A @ .8104/$100 AV in Subzone A. 2. Values in Column B @ 1.799/$100 AV in Subzone B. 3. Five percent per year appreciation on existing improved pro- perties in Subzone B, levelling off in sixth year and beyond. 4. Total of columns B, D, and E. 2. Gradually increasing portions of the estimated value for each improvement are shown during the respective estimated development periods. 3. The improvements are not shown at full value until the first year after the estimated development period for each. Additionally, the tax rates used in calculating the tax increments reflect the contractual agreements between the City of Corpus Christi, acting on behalf of the reinvestment zone, and all other taxing units involved. This analysis also includes the appreciation on existing improved properties in Subzone B which were on the tax rolls as of January 1, 1982, based upon the contractual agreements. As indicated in the table, appreciation in value of existing improved properties in Subzone B is shown at a conservative five percent per year, levelling off in the sixth year and beyond. An estimated $13,124,234 in tax increments would be accumulated over the 20 -year period. However, it should be noted that the maximum yield per year of $744,054 would not be available until 1987, based on the assumptions made in this analysis. Additionally, only $1,963,424 will have been accumulated through 1987. This reflects the usual "front end" lag affecting most tax increment projects, because the increments do not begin to show up until the tax -producing developments are on the ground and fully taxable. LEVEL 2 -- MODERATE RANGE This level shows additional tax increments which may be produced based upon proposed projects which, while not yet committed, are considered to be of high probability. There are several development projects which have been proposed which are considered to be of high probability. These are expected to produce a "captured appraised value" of $158,000,000 by 1988, $102,000,000 in Subzone A and $56,000,000 in Subzone B. Table 3, Estimated Tax Increment Production (Level 2), shows the tax increment production for the 1983-2002 time period, based on the anticipated increase in "captured appraised value." An additional $29,921,764 in tax incre- ments are produced at this level, which, when combined with the tax increments from Level 1, will total $43,045,998. As with Level 1, however, it should be pointed out that under this conservative approach, the higher yields do not start showing up until the sixth year and beyond. Only $2,178,171 in tax increments will be produced within the first four years, just slightly less than the fifth year total alone of $2,196,297. -26- NM MN I MN= ME MO NM= I MN M MI I N 1 I MN MN Table 3 Estimated Tax Increment Production (Level 2) A B1 C Captured Captured Appraised Tax Appraised Value Increments Value Subzone A Subzone A Subzone B D2 Tax Increments Subzone B E3 Level 2 Tax Increments F4 Total Tax Increments Levels 1 & 2 1983 $ -0- $ -0- 1984 -0- -0- 1985 10,000,000 81,040 1986 52,500,000 425,460 1987 88,500,000 717,204 1988 102,000,000 826,608 1989 102,000,000 826,608 1990 102,000,000 826,608 1991 102,000,000 826,608 1992 102,000,000 826,608 1993 102,000,000 826,608 1994 102,000,000 826,608 1995 102,000,000 826,608 1996 102,000,000 826,608 1997 102,000,000 826,608 1998 102,000,000 826,608 1999 102,000,000 826,608 2000 102,000,000 826,608 2001 102,000,000 826,608 2002 102,000,000 826,608 $ -0- $ -0- -0- -0- 5,000,000 89,950 20,000,000 359,800 41,000,000 737,590 56,000,000 1,007,440 56,000,000 1,007,440 56,000,000 1,007,440 56,000,000 1,007,440 56,000,000 1,007,440 56,000,000 1,007,440 56,000,000 1,007,440 56,000,000 1,007,440 56,000,000 1,007,440 56,000,000 1,007,440 56,000,000 1,007,440 56,000,000 1,007,440 56,000,000 1,007,440 56,000,000 1,007,440 56,000,000 1,007,440 $ -0- -0- 170,990 785,260 1,454,794 1,834,048 1,834,048 1,834,048 1,834,048 1,834,048 1,834,048 1,834,048 1,834,048 1,834,048 1,834,048 1,834,048 1,834,048 1,834,048 1,834,048 1,834,048 $ 42,876 165,141 567,381 1,402,773 2,196,297 2,578,102 2,578,102 2,578,102 2,578,102 2,578,102 2,578,102 2,578,102 2,578,102 2,578,102 2,578,102 2,578,102 2,578,102 2,578,102 2,578,102 2,578,102 TOTALS $13,622,824 $16,298,940 $29,921,764 $43,045,998 1. Values in Column A @ .8104/$100 AV in Subzone A. 2. Values in Column C @ 1.799/$100 AV in Subzone B. 3. Total of Columns B and D. 4. Increased by annual totals shown in Table 2. LEVEL 3 -- HIGH RANGE Because the City of Corpus Christi is in a comparatively good growth and development position, it may be possible to achieve even higher levels of development and tax increment yields in the reinvestment zone. As indicated in an earlier report7 prepared in conjunction with the designation of the reinvestment zone, this' growth potential has been documented in several recent reports and publications. Key growth indi- cators include: • The City of Corpus Christi is experiencing a steady growth in population. The 1980 population of Corpus Christi was 232,119 in a metropolitan area of approxi- mately 330,000. The estimated 1982 population is approximately 242,000, and the estimated 1990 popu- lation is projected to be approximately 273,000. Corpus Christi's population has increased almost 40 percent between 1960 and 1980 and is projected to increase almost another 18 percent by 1990. • The local economy is quite diverse, consisting of petrochemical processing, shipping, construction, tourism, defense employment, food processing, and cattle distribution. • The employment base is comparatively good. The 1981 average unemployment rate of 6.5 percent, while slightly higher than the state average, is lower than the national average for the same period. Unemployment in March, 1983, rose to 10.5 percent, which was higher than the state or national rate; however, this is con- sidered to be a temporary aberration. • The base assessed valuation of the city has more than doubled from a total of $2,346,814,142 in 1979 to $5,230,617,106 (including industrial districts under contract with the City) in 1982, reflecting both new development and property value apprecia- tion. Projected increases in the next five years are expected to average 10 to 16 percent per year. • Corpus Christi and the Coastal Bend are growing in importance as convention, tourism and recreation centers. The amenity provided by the sub -tropical 7. Trkla, Pettigrew, Allen & Payne, Inc., An Assessment of the Appropriateness and Feasibility of Using Tax Increment Financing to Aid in the Revitalization of the Bayfront Area in Corpus Christi, Texas, December, 1982. -28- climate, the natural amenities (including water and sandy beaches), and the proximity to Mexico (for side trips) make Corpus Christi an ideal location for new and expanded tourist -related development, including restaurants, hotels, and specialty shops. This potential is evidenced by the additional develop- ment now being considered in the reinvestment zone. Various hotel and condominium projects are being considered, which, in total value, range from $150 million to $200 million. There are other spin-off office and commercial developments which also may be possible as various threshold levels of new development are achieved. These potentials are not considered in this feasi- bility analysis, nor can they be because of their uncertainty. However, it is important to recognize that initial develop- ment success usually serves to enhance the overall development climate, thus producing a "spin-off" or multiplier effect. This has been experienced in many other cities utilizing the tax increment financing tool. For purposes of this project plan, however, no esti- mates are made with respect to the tax increment production possibilities under Level 3. The higher level of expection is discussed here only to indicate that the possibility exists. The feasibility findings are based only on the potentials shown for Levels 1 and 2. ESTIMATED PROJECT COSTS Project costs are defined in the Texas Tax Increment Financing Act as ". . expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by the city ... that are listed in a project plan as costs of public works or public improvements in a reinvestment zone, plus other costs incidental to the expenditures or obli- gations, diminished by any income, special assessments, or other revenues, other than tax increments, received or reasonably expected to be received by the city ... in connection with the implementation of the project plan, not pledged to secure payment of the tax increment bonds. Project costs include: "(A) capital costs, including the actual costs of the construction of public works or public improvements, new buildings, structures, and fixtures; the actual costs of the demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures and fixtures; and the actual costs of the acquisition of equipment and the clearing and grading of land; -29- "(B) financing costs, including all interest paid to holders of evidences of indebtedness or other obligations issued to pay for project costs and any premium paid over the principal amount of the obligations because of the redemption of the obligations prior to maturity; "(C) real property assembly costs; that is, the deficit incurred by the sale or lease as lessor by the city ... of property within a reinvestment zone for less than the cost of the property to the city .. "(D) professional service costs, including those costs incurred for architectural, planning, engineer- ing, and legal advice and services; "(E) imputed administrative costs, including reason- able charges for the time spent by employees of the city ... in conection with the implementation of a project plan; "(F) relocation costs; "(G) organizational costs, including the costs of conducting environmental impact studies or other studies, the costs of publicizing the creation of a reinvestment zone, and the cost of implementing the project plan for the reinvestment zone; "(H) interest prior to and during construction and for one year after completion of construction whether or not capitalized; "(I) the amount of any contributions made for the implementation of the project plan; and "(J) payments made at the discretion of the governing body of the city ... that the city ... finds necessary or convenient to the creation of a reinvestment zone or to the implementation of the project plans for the reinvestment zone."8 On the basis of this definition, it becomes necessary to distinguish between "project costs", i.e., those costs which will be defrayed by tax increment financing, and "nonproject costs", i.e., those costs which will be defrayed by sources other than tax increment financing. This distinc- tion is important because the finding of feasibility relates 8. Article 1066e, op. cit., Section 2(3). -30- only to the use of tax increment financing for project costs. While it is required that the sources of funding be shown for nonproject costs, the analysis of their relationship is not a function of the feasibility analysis or the use of tax increment financing. A primary objective of the City of Corpus Christi is to utilize the tax increment financing tool to install public improvements and supporting facilities necessary to the revitalization of the reinvestment zone area. As indicated in Chapter 3 of this report, 70 needed public improvement projects have been identified, with an estimated total cost of $ 87,419,000. Since this total significantly exceeds the tax incre- ment resources generated in Levels 1 and 2, respectively, the projects were ranked on the basis of priority. Priority projects to be listed as being financed through tax increments are thus shown in two categories: • Category I. Estimated project costs listed here are those which can be financed directly from the $13,124,234 in tax increments projected to be produced at Level 1. • Category II. Estimated project costs listed here are those which can be financed directly from the additional $29,921,764 in tax increments projected to be produced at Level 2. These are shown on Table 4, Estimated Project Costs, Category I, and Table 5, Estimated Project Costs, Category II, respectively. All projects listed in Chapter 3 which are not shown here as either Category I or Category II project costs will be considered for purposes of this project plan as "nonproject" costs, i.e., costs to be borne by funding sources other than tax increment financing. -31- Table 4, Estimated Project Costs in 1983 Dollars (Category 1) Project Downtown Signalization Project $ 600,000 2. Mesquite and Water Streets Intersection Improvements 300,000 3. Pedestrian Connection: Bluff and Peoples/ Schatzel Streets 250,000 4. Shoreline Boulevard Landscaping 750,000 5. Upgrading Utilities - Public Shoreline 1,000,000 6. Two Seawall Overlooks 100,000 7. Realign Agnes/Kinney and Landscaping 650,000 8. Coliseum Ticket Office, etc. 100,000 9. Shoreline Signals, Lights, Street Furniture 1,500,000 10. Restore T- and L -Head Bulkheading 2,700,000 11. Overlay on T -Head Stems, etc. 250,000 12. Extend Breakwater Cap and Lighting 725,000 13. Lighting on Beach, No. Shoreline, Timon 275,000 14. Lighting on Existing Breakwater - Corpus Christi Beach 150,000 15. Corpus Christi Beach Park Improvements 1,000,000 16. Pedestrian Walkway - Corpus Christi Beach 350,000 17. Vestpocket Park - La Retama Plaza 500,000 18. Water Taxi Terminals 500,000 19. Repairs to Existing Seawall * SUBTOTAL $ 11,700,000 Inflation @ 12 percent** 1,404,000 TOTAL $ 13,104,000 * No specific dollar amount has been attributed to this project to date; studies are underway. ** Includes Reinvestment Zone administration. -32- Table 5, Estimated Project Costs in 1983 Dollars (Category 2) Project —Downtown Street Asphalt Overlay 2. Chaparral Street Landscaping 3. Artesian Park Renovation 4. CBD Area Projects: Upgrading Utilities and Vehicular Improvements at Leopard and Lawrence, Laguna and Williams, Lipan and Williams 5. Three Seawall Overlooks 6. Barge Dock Improvements Including Ramp Renovation 7. Convention Center Garage 8. 12,000 Seat Arena; Demolish Memorial Coliseum 9. Realign Ocean Drive/Water Street Intersection 10. Construction 400-500 New Slips 11. Two New Additional Land Masses, North 12. Timon/Surfside Improvements (North of Breaker Street) 13. South Basin Small Land Mass $ 650,000 300,000 500,000 2,600,000 150,000 200,000 6,000,000 10,000,000 1,000,000 1,600,000 3,000,000 1,500,000 1,700,000 TOTAL $ 29,200,000* *Because of the uncertainty regarding the timing of these projects, it is not possible to determine the impact of inflation. However, this total is considered to be within the coverage potentials of the Level 2 tax increments. -33- FEASIBILITY ANALYSIS: TAX INCREMENT FINANCING As indicated earlier, it is impossible to predict what development will take place beyond what is already committed or under construction. From all indications, however, tax incre- ments are likely to be produced in amounts which could reach or even exceed $40 million in the next twenty years. This repre- sents a substantial base from which to implement needed public improvements projects in the reinvestment zone area. An important part of the Corpus Christi strategy is to finance such improvements primarily from the cash flow generated by the tax increments. Utilizing this approach, substantial savings would be realized by eliminating the high financing costs. In order to achieve this objective, however, it is essential that the public improvements to be made in the reinvestment zone be organized into a priority - ordered development program directly related to the projected tax increment proceeds. Additionally, such improvements should not be committed to construction until after the•required incre- ments will have been received by the reinvestment zone. This may mean a slower start in the capital improve- ments program to reflect the early lag in tax increment accumulation normally associated with tax increment pro- jects. This may require the City to defer many of these projects for three to five years. Once the annual increment yields are built up, however, the City is in a position to maintain a steady level of capital improvement investments within the reinvestment zone. There is the added flexibility at this point to utilize tax increment bond financing, should the need arise. Bonds issued at this time would be easily marketed and could be placed at comparatively favorable rates, because the increment base will already have been established. Additionally, with the increment base in place, there will be no need to incur high front-end capitalization costs. The City, however, must maintain the flexibility to issue revenue bonds based on future tax incremental payments, should future review of the plan and its priorities indicate the necessity of shortening time plans for installation of improvements. Should the City follow this route, it would be appropriate to issue bonds based on the increments produced from private improvements, where either in place or under construction, at the time of such possible bond issue. The feasibility of utilizing tax increment financing is thus guaranteed, because it is mandated as part of this project plan that the only project costs to be incurred within the reinvestment zone will be those which are financeable within the limits of the tax increments which become available. -34- ESTIMATED NONPROJECT COSTS Nonproject costs are those incurred to aid in the revitalization of the reinvesment zone which will be defrayed by sources other than tax increment financing. All projects previously identified in Chapter 3 which are not included as project costs in the previous subsection are considered to be nonproject costs. These are shown on Table 6, Estimated Nonproject Costs. As the table shows, these nonproject costs total $46,519,000 in 1983 dollars. Should the tax increment production exceed the total shown for Level 2, then this project plan may be amended at a later date to transfer nonproject cost items to the project cost category so long as the estimated project costs stay within the tax increment financing limitations. Additionally, many of the nonproject cost items may be defrayed privately. -35- Table 6, Estimated Nonproject Costs in 1983 Dollars ROADWAY/INTERSECTION IMPROVEMENTS: Lawrence Street realignment at T -Head Timon/Surfside Street looped boulevard with landscaping Shoreline Boulevard overlay TOTAL PEDESTRIAN IMPROVEMENTS: Peoples Street pedestrian crossing Cooper's Alley/L-Head pedestrian crossing Lawrence Street T -Head pedestrian crossing McGee Beach/Park Avenue pedestrian crossing Twigg Street/new mass pedestrian crossing TOTAL LANDSCAPING: IH -37 park landscaping and fountain Twigg Street landscaping Restoration of bluff between Agnes and Park Streets TOTAL PARKING IMPROVEMENTS: Downtown parking project Corpus Christi Beach middle parking area Corpus Christi Beach north to middle two parking areas Corpus Christi Beach south to middle two parking areas TOTAL -36- $ 150,000 1984-85 669,000 1990-93 400,000 2000-02 $ 1,219,000 $ 200,000 1983-84 225,000 1984-85 225,000 1984-85 200,000 1985-86 200,000 1986-87 $ 1,050,000 $ 350,000 1983-85 300,000 1987-88 600,000 1994-96 $ 1,250,000 $ 900,000 1983-84 300,000 1983-84 300,000 1984-85 250,000 1985-86 $ 1,750,000 Table 6, Estimated Nonproject Costs (cont'd.) SHORELINE/MARINA IMPROVEMENTS: Corpus Christi Beach shallow draft boat launching facilities $ 50,000 1985 Construction of sand retention facility Corpus Christi Beach 1,000,000 1985-86 Maintenance dredging of Marina 250,000 1985-86 New Land mass north of Peoples Street T -Head 3,500,000 1985-87 McGee Beach re -nourishment 200,000 1986-87 Corpus Christi Beach landscaping with berms 100,000 1987-88 TOTAL $ 5,100,000 PARK IMPROVEMENTS: Renovation of South Channel Park North Channel Park development with parking Cole Park bike and jogging paths $ 150,000 1985-86 400,000 1987-88 350,000 1988-91 TOTAL $ 900,000 PUBLIC BUILDINGS: Development of Multi -Cultural Center, plaza, landscaping Remove architectural barriers in public buildings TOTAL -37- $ 1,200,000 1983-87 75,000 1983-88 $ 1,275,000 Table 6, Estimated Nonproject Costs (cont'd.) DEMOLITION: Demolition of public buildings on Shoreline Demolition of old central library Demolition of Gibbons Building $ 200,000 1984-86 200,000 1985-86 25,000 1987 TOTAL $ 425,000 UTILITIES: Upgrading of utilities on existing land masses $ 300,000 1987-88 TOTAL $ 300,000 PUBLIC/PRIVATE PARTNERSHIPS OR PRIVATELY -CONTRIBUTED IMPROVEMENTS: Marina Office/Patio Bar and Grill $ 700,000 1983-84 Brown Pelican Sculpture Fountain 200,000 1983-84 Floating Barge Restaurant 750,000 1984-85 New Corpus Christi Museum Wing 1,500,000 1984-86 Barge Dock Development 300,000 1984-90 Bayfront Arts/Science Park Water Garden 800,000 1985-87 Aquarium 3,000,000 1986-87 New Land Mass Commercial Development 25,000,000 1987-90 Museum of Oriental Cultures Building 1,000,000 1987-91 TOTAL $33,250,000 GRAND TOTAL $46,519,000 -38- METHODS OF FINANCING NONPROJECT COSTS The purpose of this subsection is to identify the general sources and methods of funding which might be made available to defray the costs for projects not to be covered by tax increments. As indicated in the previous subsection and in Table 6, nonproject costs are estimated at $46,519,000. Principal sources of funding include: • Private Participation. There are several projects which might be constructed through private constribu- tions or public/private partnerships. These include: (a) Brown Pelican Sculpture/Fountain, (b) New Corpus Christi Museum Wing, (c) Bayfront Arts/Science Park Water Garden, (d) Museum of Oriental Cultures Building, (e) Aquarium, and (f) Barge Dock and Ramp renovation. These projects comprise a total development effort of approximately $6,800,000. Additionally, three projects may be developed privately on a for-profit basis, including: (a) New Land Mass Commercial Development (est. $25,000,000), (b) Floating Barge Restaurant (est. $750,000), and (c) Marina Office/Patio Bar and Grill (est. $700,000). These potential private investments total $33,250,000, or 71.5 percent of the nonproject cost total of $46,519,000. (It should be noted that the for-profit, privately funded projects will generate additional tax increments, Community Development Block Grant Funds. Over the next twenty years, some of the federal community development funds received by the City of Corpus Christi may be utilized for eligible public improver meats within the reinvestment zone. These funds nust be used in conformance with the objectives of the Housing and Community Development Act of 1974 and its subsequent amendments. The U. S. Department of Housing and Urban Development, which administers the C.D, grants, has, in the past eight years allocated to the City of Corpus Christi the following amounts: Fiscal Year Amount 1975-76 $100 1976-77 2,832,000 1977-78 4,694,000 1978-79 4,876,000 1979-80 5,228,000 1980-81 5,548,000 1981-82 5,341,000 1982-83 4,653,000 -39- For fiscal year 1983-84 (August 1 -July 31), the City of Corpus Christi expects to receive $4,186,000. While these annual funding amounts have begun to diminish, there is sufficient basis to anticipate reasonable funding levels in future years. Other Federal and State Funding. In addition to CDBG funds, the City is either now eligible or may become eligible for submitting grant applications for projects under numerous other Federal and State funding programs such as EDA public works grants, Land and Water Conservation Funds, Texas Parks and Wildlife Funds and various Corps of Engineers funding. The City should constantly monitor Federal and State programs and their attendant regulations for possible avenues for funding of projects within the project plan. Municipal Bonds. The City may issue general obligation or revenue bonds from time to time to finance needed public improvements within the reinvestment zone. However, since the mill rate levy for bond debt service is included within the total mill levy, which in turn is limited by city charter to a maximum of .680/100 AV per year, this resource is also limited in the near term. The current local mill rate is .568/100 AV, of which, .2213/100 AV is devoted to debt service. -40- 5 PROPOSED CHANGES: PLAN AND ORDINANCES There are no immediate changes required or proposed in the zoning ordinance, master plan, building code or other city ordinances to implement this project plan. However, if the project plan is modified in the future, changes may become necessary and could be accomplished by City Council action after appropriate statutory pro- cesses have been accomplished. -41- 6 METHOD OF RELOCATING DISPLACED PERSONS Not applicable. There is no contemplated displacement of families, individuals or businesses as a result of the implementation of this project plan. -42- 7 AMENDMENTS TO PROJECT PLAN The board of directors of the zone at any time may adopt an amendment to this project plan. The amendment takes effect on approval by the City Council. Approval by the City Council must be by ordinance. -43- APPENDICES 1. Boundary Description 2. Summary of Existing Improved Properties in Subzone B 3. Maps Appendix 1 BOUNDARY DESCRIPTION CORPUS CHRISTI REINVESTMENT ZONE NUMBER 1 BEGINNING AT A POINT in the waters of existing Nueces Bay, said point being in line with the East boundary line of the canal commonly referred to as "Canal A South" (the present City limit line) and 200 feet, more or less, North of the exist- ing shore of said Nueces Bay for the POINT OF BEGINNING; THENCE in a Southeasterly direction in line with the Northernmost tip of the land mass commonly referred to as Corpus Christi Beach, a distance of 3,600 feet, more or less, to a point in the waters of Corpus Christi Bay for a corner; THENCE in a Southwesterly direction to a point, the Southeasternmost corner of existing "Cole Park" for a corner; THENCE in a Southwesterly direction along the existing South boundary line of "Cole Park" and across Ocean Drive to the West right-of-way line of said Ocean Drive for a corner; THENCE in a Northerly direction along said West right- of-way line of Ocean Drive to its intersecton with the South right-of-way line of Buford Street; THENCE in a Westerly direction along said South right- of-way line of Buford Street to its intersection with the West right-of-way line of Ocean Drive (extended); THENCE in a Northerly direction along said West right-of- way line of Ocean Drive (extended), across Buford Street and continuing along the West right-of-way line of Ocean Drive to the intersection of the North right-of-way line of Furman Street and West right-of-way line of Water street for a corner; THENCE continuing in a Northerly direction along the West right-of-way line of Water Street to its intersection with the South boundary line of Lot 2, Shoreline Terrace as shown on Plat of Record in Volume 26, Page 83, Nueces County Map Records, Nueces County, Texas, for a corner; THENCE in a Westerly direction along said South boundary line of Lot 2, Shoreline Terrace and its Westerly extension, to its intersection with the West right-of-way line of South Upper Broadway (extended); THENCE in a Northerly direction with said West right-of-way line of South Upper Broadway (extended), past the North right-of- way line of Coleman Street and continuing along the West right- of-way line of South Upper Broadway to its intersection with the South right-of-way line of Park Avenue for a corner; THENCE in a Westerly direction along the South right- of-way line of Park Avenue to its intersection with the Southerly extension of the West right-of-way line of South Upper broadway for a corner; THENCE in a Northerly direction along the West right-of- way line of South Upper Broadway (extended), past the North right-of-way line of Park Avenue and continuing along the West right-of-way line of South Upper Broadway and its Northerly extension across the section of freeway commonly known as the "Downtown Exchange" to the intersection of the West right-of-way line of North Upper Broadway and the North right-of-way line of Kinney Street for a corner; THENCE continuing in a Northerly direction along the West right-of-way line of North Upper Broadway to its intersection with the Westerly extension of the North right-of-way line of Twigg Street for a corner; THENCE in an Easterly direction along the North right- of-way line of Twigg Street (extended), to its intersection with the centerline of State Highway 181 for a corner; THENCE in a Northerly direction with the centerline of State Highway 181 and crossing the Corpus Christi Ship Channel to the existing shoreline for a point; THENCE in a Westerly direction with the meanders of said existing shoreline to its intersection with the Southerly extension of the centerline of a street commonly known as Market Street for a corner; THENCE in a Northerly direction with the centerline of said Market Street (extended), to a point on the existing City limit line and continuing with said City limit line to a point on the South boundary line of existing Porto Bello Subdivision for a corner; THENCE continuing with the present City limit line, in a Westerly direction along said South boundary line of existing Porto Bello Subdivision, to a point on its West boundary line, the East line of aforementioned Canal A South for a corner; THENCE continuing with the present City limit line, the East line of said Canal A South, past the existing shoreline of Nueces Bay to the POINT OF BEGINNING. Addendum to Boundary Description All boundaries described as shoreline, breakwater, or seawall shall include in addition to the existing land and facilities any and all facilities to be built in the future extending into the waterway. Revised on December 16, 1982 Appendix 2 SUMMARY OF EXISTING IMPROVED PROPERTIES IN SUBZONE B Appendix 3: MAPS Figure 1, Boundary Map Figure 2, Bayfront Plan Figure 3, Existing Land Use Figure 4, Exterior Condition Survey Figure 5, Existing Zoning Figure 6, Proposed Private Improvements t v That the foregoing ordinance was,rpad for second reading on this the ,:77 day of following vote: Luther Jones Betty N. Turner Jack K. Dumphy Bob Gulley Herbert L. Hawkins, Jr. Dr. Charles W. Kennedy Cliff Zarsky That the foregoing ordinance ras ead for third reading on this the aday of following vote: Luther Jones Betty N. Turner Jack K. Dumphy Bob Gulley Herbert L. Hawkins, Jr. Dr. Charles W. Kennedy Cliff Zarsky r-. f'rst time nd passed to its , 19 o & , by the second ime a , 19 assed to its , by the That the foregoing rdinance w ead for the th' d time and passed finally on this the day of �, 19 33 , by the following vote: Luther Jones Betty N. Turner Jack K. Dumphy Bob Gulley Herbert L. Hawkins, Jr. Dr. Charles W. Kennedy Cliff Zarsky �( PASSED AND APPROVED, this the `O' day of ATTEST: I S, E Secretary APPR: 027 DAY OF 19t): J. BRUCE/AYCOCK, C Y ATTOR EY By Q: r ssisfant r�ri rney MAYOR THE CITY OF CORPUS CHRISTI, TEXAS