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HomeMy WebLinkAbout025215 ORD - 02/25/2003 ORDINANCE NO. AN ORDINANCE APPROVING A FINAL PROJECT AND FINANCING PLAN FOR THE "REIN-VESTMENT ZONE NUMBER TWO, CITY OF CORPUS CHRISTI, TEXAS"; APPROVING THE SALE OF BONDS BY NORTH PADRE ISLAND DEVELOPMENT CORPORATION IN FURTHERANCE OF THE FINAL PROJECT AND FINANCING PLAN; AND OTHER MATTERS RELATING THERETO. WHEREAS, on November 14, 2000, the City Council of the City adopted Ordinance No. 024270 (the "Creation Ordinance"), approving the creation of a tax increment reinvestment zone in the City known as "Reinveslment Zone Number Two, City of Corpus Christi, Texas" ("TIRZ Two"); and WHEREAS, in connection with the adoption of the Creation Ordinance and the establishment of TIRZ Two, the City prepared a preliminary reinvestment zone financing plan, and presented the preliminary reinvestment zone financing plan to the goveming body of each taxing unit that levies taxes on real property in the proposed reinves~ment zone; and WHEREAS, in compliance with the provisions of Chapter 311, Texas Tax Code (the "Act"), a project plan and reinvestment zone financing plan has been prepared and approved by the Board of Directors of TIP, Z Two, which project plan and reinvestment zone financing plan so approved is attached to this Ordinance as Exhibit "A" (the "Plan"); and WHEREAS, in compliance with the Act, the City Council finds it necessary and desirable to approve the Plan submitted with this Ordinance; and WHEREAS, by Resolution No. 025040, adopted on October 8, 2002, the City authorized the creation of the North Padre Island Development Corporation (the "Corporation") to aid, assist and act on behalf of the City in the performance of the City's governmental and proprietary functions with respect to the common good and general welfare of the City, as described in the Creation Ordinance; and WHEREAS, on February 25, 2003 theCorpomtion adopted a resolution authorizing the issuance and delivery of up to $3,000,000 in Tax Increment Contract Revenue Bonds, Series 2003 (the "Bonds"), for the purpose of funding a portion of the "project costs" as are set forth in the Plan; and WHEREAS, the Corporation and the Board of Directors of TIRZ Two have approved the execution and delivew of that certain Agreement by and among the City, TIRZ Two, and the Corporation dated as of February I, 2003 (the "Th-Party Agreement"), pursuant to which the Corporation was delegated certain power and authority in connection with thc implementation of the Plan on behalf of'I'IRZ Two, including, but not limited to, the power to issue, sell or deliver its bonds, notes or other obligations in accordance with the terms of the Tri-Party Agreement; and WHEREAS, the City Council finds it necessary and advisable to adopt this Ordinance to approve the Plan, as required by the Act, to approve the Tri-Pat~y Agreement, and the approve the resolution of the Corporation that authorized the issuance and delivery of the Bonds. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1: That the facts and recitahons contained in the preamble of this Ordinance are hereby found and declared to be hue and correct. SECTION 2: That the City Council hereby approves the project plan and the reinvestment zone financing plan attached to this Ordinance as Exhibit "A", as required by Section 311.011 of the Act. SECTION 3: That the City Council does hereby find and declare that the project and firmncing plan submitted to the City Council fur approval, and hereby approved by the adoption of this Ordinance, is feasible for the development of TIRZ Two and conform to the mas~ plan of the City. 2 SE(;TION 4: That the City hereby approves the Resolution adopted by the Corporation, in substantially the form and substance as attached hereto as Exhibit "B", and all documents attached to the Resolution including, without limitation, the Tri-Party Agreement The Mayor and the City Secretary are hereby authorized to execute, attest, seal and deliver the Tri-Parly Agreement on behalf of the City. The issuance of Bonds in an amount not to exceed $3,000,000 for the purposes described in the Resolution is hereby approved. SECTION 5: That if any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. SECTION 6: This Ordinance shall be effective immediately from and after its passage in accordance with the provisions of Section 1201.028, Texas Government Code. SIGNED AND SEALED THIS 25TH DAY OF FEBRUARY, 2003. City of Corpus Christi, Texas City Secretary APPROVED AS TO FORM: 3 (SEAL) THE STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI I, the undersigned, City Secretary of the City of Corpus Christi, Texas, do hereby ceffify that the above and foregoing is a tree, full and correct copy of an Ordinance passed by the City Council of the City of Corpus Christi, Texas (and of the minutes pertaining thereto) on the 25th day of February, 2003, approving the project and financing plan for Reinvestment Zone Number Two, City of Corpus Christi, Texas, and other matters related thereto, which ordinance is duly of record in the minutes of said City Council, and said meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Texas Government Code, Chapter 551. EXECUTED UNDER MY HAND AND SEAL of said City, this the 25th day o£Februa~, 2003. City Secretary, City of Corpus Christi, Texas (SEAL) 4 Corpus Christi, Texas TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings: I/we, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Samuel L.-lql'ea~, Jr., Mayor' / City of Corpus Christi Council Members The above ordinance was passed by the following vote: Samuel L. Neal, Jr. Brent Chesney Javier D. Colmenero Henry Garrett Bill Kelly Rex A. Kinnison John Longoria Jesse Noyola Mark Scott 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 thc Tax Increment Financing Act, Chapter 311, Texas Tax Code (the "TW 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 Finencmg Plan (the "Plan"). The City Council ofthe City of Corpus Christ~ Texas (the "City") and the Zone Board must both adopt this Plan. Thc Plan includes information concerning proposed land uses and development, estimated project and non-project costs and adminisWativc ~xpenses, engineering studies, proposed financing and economic feasibility data, and property appraisal data. The Plan includes financing Of thc Zone's portiofi of the North Padre Island Storm Damage Reduction and Environmental Restoration Project (the "Project"). This Plan sets out the details of thc tax and economic benefits derived fxom development of the Project Site, the scope of thc Project, and the financing strateg~ for funding of Project costs through thc issuance of bonds. Complete copies of thc Plan, including a r~ort attached to this Plan, as Exhibit A, entitled "Forecast of Potential TIF Revenue Flows on North Padre Island", prepared by Economics Resea~h Associates ("ERA '), which constitutes the economic feasibility study required by the TIF Act, are available fix~m the City of Corpus Christi, Texas, 1201 Leopard Street, Corpus Christi, Texas 78401, Attention: City Secretary. North Padre Island Storm Dumage Reduction and Environmentnl Restoration Project The Project is a project of the U.S. Army Corps of Engineers (the "Corps") to dredge and channelizo a reopened waterway ("Packe~y Channel") between the Laguna Madre Intracoastal Waterway and the Gulf of Mexico. In addition to the Packery Channel, the Project includes construction by the Corps of two 1,400 foot jetties paralleling the Packety 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 remaining 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 rite North Padre Island Development Corlxrafien (the "Issue'), a net-for- profit local government corporafion~ It was established by thc City under the provisions of Chapter 431, Texas Transportation Code, and tho general laws of the State of Texas to aid, assist, and act on behalf of tho City in the performance of thc City's govca~mental functions and to provide a means of financing ccFtain 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 danmge reduction at North Padre Island. The Project will extend the exisfin~ approximntdy 2.6 miles portion of thc Packv~y Channel an additional 0.9 mile. The Project is described in the Environmental Impnct Statement (ELS), as nrc the benefits and impncts 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 Packeay Channel would provide sand for nourishment of the beach, and an eniarged beach would reduec potential future storm danmge. A Project Study Plan, prepared by the Corps in 1999, examined three altenuitive sites, including Packel'y Channel. Three differ~t channel widths under three diffel'ent salinity regimes were also ~xllminod to detor~ tho environmental benSits of an opining between the Laguna Madre and the Gulf of Mexico. The environmental benefits of all alternatives were essentially negligible. The final ElS will be available upon publication by the Corps from the City of Corpus Chiisti, Texas, 1201 Leopard Street, Corpus Christi, Texgas 78401, Attention: city Seer ary. 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 beth sides of the main channel creating three placement areas to create shallow water habitat, continuing with a smaller channel along the existing ali~onment of Packety Channel from the highway bridge to the GulfInUacoa.qalWaterwsy, dredged to a required depth of 7 feet and bottom width of 80 feet, installation of a 30 tach 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 foot) and dr~oing th~ 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 matexial 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 m front of the existing concrete seawall. Sandy maintenance material from the channel east 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 Februmy 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, thc estimated maimenanee dred~ino_g will commence in 2008, and the estimated cost of such mamtenanee dredging in that year will approximate $350,000. Thc costs of the maintenance dredging are intended to be paid by the Zone, either from tax m~ ~u~t collections, proceeds from bonds, a combination of those two sources, or other moneys made available to thc City or the Zone for such purpose. Secondary development within the Zone that includes public miprovemants is being proposed by the City as local sponsor. Seeondary development includes proposed park amenities that oncompass approximately 14.2 acres providing access to Packmy Channel, tho bea~h, alia the jetties; passenger and recreational vehicle parking; walkways; ~strooms; 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 Packery 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 thc Corps undo' the Project Contract. The Project Contract has not been approved by either the Corps or the City, but thc City cxpeets execution of tho Contract by both parties by Spring 2003. Under the Project Contract, the Corps, subject to receiving funds appropriated by Congress and using the 2 funds expected to bo provided by thc City through the Issuer, would agree to expeditiously constru~ the Project. The Project Contract reco~nizes that Congressional appropriations to date are less than the amount of federai funds required for completion of the Project, ~nd that m the event insufficient funds are appropriated for thc federal government's share of Project costs, then Project construction will be suspended orthe 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 bc conlribut~l in cash with the remainder being thc appraised vaiuc of cash or lands, casements, rights-of-way, and suitable burrow and dredged or excavated material dispnsal areas. The City must deposit its share of projected financial obligations for construction through thc first fiscal year of constn~ion within 45 days ofnoti~ fromtt~ Corps. For each subsequent year, thc dsl~nsit must be made no later than 60 days prior to the beginning of thc fiscal year. The Project Contract obligates the City to operate, maintain, repair, replace, and rehabilitate the entire Project at no cost to the fodel'al gov~iiRlent. Tho City is seeking trallsfgr of a portion of the malntenallee cost to thB Corps, but at this time no provision has been mad~ for payment of ongoing maintenance costs. Funding of a maintenance ~serve from proc~ls of an additional series of Tax Increment Contract Revenue Bonds is contemplated by this Plan, but there is no assurance that a maintenance reserve will be tim&d, nor is there any guarantee that if fundad the maintenance reserve would be adequate to pay costs of ongoing maintenance Reinvestment Zone Number Two, City of Corpus Christi, Texas Thc Zone was c~eated by the City pursuant to thc TIF Act to facilitate dcvclopmant of tbe land within the boandaries of thc Zone, a 1,947.01 -acre parcel located entirely within the City and thc County. The Zone bacame cffeetive on November 14, 2000, and will t~a minate un December 31, 2022, or at an earlier time designated by subsequent ordinance of the City, or at such earlier time that aH Zone Project Costs, tax increment bonds, and the ~t on all tax incr~nent bonds, have been paid in full (the duration of thc Zone). Thc Zone is located on Padre Island, and intersected by State Highway 361 and Park Road 22 leading from th~ John F. Kennedy Causeavay. A map showing the existing uses and conditions of real prop~ty in the Zone is attachad to this Plan as Exhibit B. A map showing thc proposed improvements to and proposed uses of the real property in the Zone is atC_~hedto this Plan as Exhibit C. Pursuant to the T1F 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 remainde~ (but not less than 10) appointed by the City. Name Position Samnel L. Neal President Vice President Javiar D. Cohncucro Member Bnmt Chesney Member Rgx Kinniv, on Member John Longoria Member Jesse Noyola Member Mark Scott Member Gabriel Rivas Member Cai Jennin~ M~llbel' Rielmrd Pittman Member John LaRue Member Aooointed Bv City of Corpus Christi Nueces County City of Corpus Ch~sti City of Corpus Cl~is~ City of Corpu~ Christi City of Corpus Christi City of Corpus Christi City of Corpus Christi I~1 Mar College Nueees County Hospital District Flour Bluff Indq~a~lent School District Port of Corpus Christi Authority 3 Existing Land Use Existing land-uses within the Zone consist of fight 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 wilhin thc Use Acres 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 L.947.0138 Infrastructure Requirements for Development It is the City's policy that infrastructure required for new developn~mt within tho Zone will be the responsibility of each landowner or developer, similnr to any other development that occurs in the City. The wastewatar treatment plant and mink main collection system is in place and is of sufficient capacity to accommodate new development, and sufficient fxeshwater 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 street construction, sewer collection lines, or water supply lines for development. The City pays for oversize and ~ra depth costs associated with water and wastewatar extensions that are designed to service property outside or bcyund the ownar's development. Thc City participates in street development to pay the addilienal m for extra width associated with arterial streets or collectors that are designed to be exuded beyond the developer's property. The City also pays for thc costs of bridges and culverts to extend streets bcyond 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 comistent within existing uses, and additional development must occur before the Issu~ can provide for the payment of additional Tax Increment Contract Revenue Bonds (har~inafl. ar 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 dred~ng of Packe~y Channel, the maintenance dredgiilg costs, secondazy Project costs, admini~h ~ve {X~S ofth~ 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 estimaUxi amount of bonded 4 indebtectzss to be incum:d to pay initial Project costs, and the timing of when related costs and monetary obligations for im?lenl~nting this Plan are to be incurred, ~ set forth in Exhibit D. The City currently estim,~es that the total nmount of Issuer debt n~,~ssary to be issu~ for completion of initial Project costs will not exceed SI2,000,000. Secondary development improvcments arc to bc financed as funding becomes available from surplus tax increments or bonds. The City cunoenfly estimates the total amount of Issuer debt that may be issued for secondmy devclopments 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 thc Series 2003 Bonds (hereinafter defined) are thc 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 "T ax Ima ca~'nt Fund") certain tax collections arising from their respective taxation of the increase, if may, in the appraised value of real property located in the Zone since November 14, 2000 (bereinat~, 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 Distxict 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 Increments''). The bonds to be issued to fund Project costs are to be payable solely from the Contract Tax Increments and cexlain 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 Dis~ict (each referred to individually herein as a"Pa~icipanf' and collectively refeaxed to as the "Participants") have agreed to deposit to the Tax Ineremem Fund the Dedicated Pursuant to the TIF Act, a taxing unit's tax increment for a year (a "Tax Inc, ~ment") is the amount of propet~y taxes levied by the unit for that year on the "captured" appraised value of real property taxable by the unit and local_ _~_ in a reinvestment zone. Tax Inerernents 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 Valne") 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 reinvesmaent zone for thc 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 ?anicipaats as of January l, 2000. Tax Increments result only from Captured Appraised Value in the Zone, which consists of 1,947.0138 ac~s, approximately 542.8184 of which is publicly owned and not ~0~uble. 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 eneh of the County, the College, and the Hospital District, respectively (the "Interlneal Agreements") the Paxiieiponts have agreed to deposit all or a por'dun of their Tax Inereme~ to the Tax Inerement 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 cach tax year that tbe Zoue remains in axistence, ceflmaencmg in tax year 2000. The College has agreed to deposit to the T ax Increment Fund 100% of the its Tax Increments for the first five years (2000-2004) of the Interlueal Agreement, 80% for the sixth year (2005), 60o/o for the seventh year (2006), 40% for the eighth year (2007), 20% for the ninth year (2008), and none thereaf~r. The amounts the Participants have agreed to deposit to the Tax Iue~nent Fund are referred to herein as the "Dedicated Tax Increments." The obligations of the Participants to pay Dedicated T ax Increments into the Tax Inerement Fund are subject to the rights of any of the holders of bonds, notes or other obligations that have been or are bereaf~r issued by a Participant that are payable from and secured by a general levy of ad valorem taxes throughout the taxing jurisdiction of that Participant. North Padre Island Development Corporation The Issuer The Issuer is a not-for-profit local gove~maent corporation and was established by the City under the provisions of Chapter 431, Texas Transportation Code, and the general laws ofthe 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 cooneetion with the imple~nentafion 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 thc 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 Inca ~t Contract Revenne 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 Issue~ (the "Tri-Party Agreement''). Under that agrcement, the Contract Tax Ineremems will be paid into tha Tax Inerement 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 Inerements on parity with the Bonds. Seconda~ development i~?,ovements may also be finenced from additional bonds. For the Issuer to be able to repoy such additional bonds, substantial growth m 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 ran~aining 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. VChile the City expec~ that such additional improvelnents will be constructed if the Packary 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 agreem~t with ~ylandowner for eonstracfien of improvements within the Zone, or knowledge that any lendowners ~ to censtmet additional improven~ng Without future development within the Zone, there can be no guarantee of additional Dedicated Tax Incremants 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 The City, the Zone and the Issuer will enter into thc Tri-Party Agre~ment~ Pursuant to tbe Tri-Party Agreement, the Issuer will pmvid~ c~min management and adminislrative s~vices 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 us~ all Contract Tax Increments in a mmmer consistent with the Plan. The Tri-Party Agreement provides for duties and responsibilities of thc City with respect to Dedicated Tax Ine~nmts and provides for duties end responsibilities of thc Zone with respect to Dedicated Tax Increments. Thc Dedicated Tax Incrvmcnts arc to be deposited when received into the T ax Increment Fund. The City and thc Zone will covenant and agree that they will continuously collect the Dedicated Tax Increments from the Pmlicipants in the manner and to the maximum extent permitted by applicable law. To thc extent the City and Zone may legally do so, they also will covenant and agree that they will not permit a reduction in the Dedicated Tax Increments paid by the Participants. Thc City will covenant and agree to annually l~wy, assess and collect its ad valorem taxes in the Zone. The City and the Zone will agree to pay to tbe Issuer the Contract Tax Increments in consideration for the Issuer funding certain of the Project costs with the proeceds of the Tax Increment 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 hcreafl~r issued by the City, the County, the College, or the Hospital District that are payable from and s~Jred 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 mtcrests of the Issuer in the Tri-Party Agreement will be assigned to the Trustee for the Tax Increment Contract Revenue Bonds under the t~ms of the Indenture pursuant to which such Tax Increment Contract Revenue Bonds are to be issued. The TH-Party Agreenaent 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 thc Issuer's bonds or o~.cr outstax~ling obligations. 7 Re'mvestment Zone Number Two City of Corpus Christi, Texas EXHIBIT A Revenue Flows on North Padr~ bland (Fi~ 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 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 List of Tables and Exhibits Table 1. Taxable Value of Land & Improvement, ....................................................................... 2 TIF District - 2000 ...................................................................................................................... 2 Table 2. Tax Rates for Participating Jurisdictions ........................................................................ 3 Table 3. Waterfront Properties by Location and Value within the TIF District ............................. 6 Table 4. Average Assessed Land Value by Location ................................................................... 7 Table 5. Average Condominium Assessed Value by Water frontage ........................................... 8 Table 6. Condominium Properties m the TIF District .................................................................. 8 Table 7. Lake Padre Properties by Tax ID ................................................................................... 9 Table 8. Other Non-Exempt Water Front Properties .................................................................... 9 Table 9. Exempt Properties ........................................................................................................ 10 Table 10. Padre Island Growth Rates by Location - 1992-2002 ................................................. 10 Table 11. Scenario 1. TIF District Taxable Value and Revenue, 2001 - 2022 ............................. 11 Table 12. Scenario 2. TIF District Taxable Value and Revenue, 2001 - 2022 ............................. 11 Exhibit 1. TIF Revenue Schedule, Scenarios 1 and 2 .................................................................. 12 Table 13. TIF Taxable Value and Tax Revenue Schedule, Scenarios 1 and 2 ($000s) ................. 13 TXF Almltldl for North Padre ~larld - I:inal Page iii GENERAL LI'I ffi' NG COND11' ONS 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 fi.om 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. T'iF Anel~b for Nol~ Pldre ~lend - Final Page Iv t'NTRODUC'I ON 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 bom 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 fi.om these sources have been assessed to generate a reasonable estimate of potential tax increment revenue. This report is independent fi'om 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 fi.om 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. 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. TaMe 1. Taxable Value of Land & Improvement, TIF Disb'k~ - 2000 Cate~ry land - Home Site Land - Non-Home Sit~ Improvements - Home Site Imp~uvements - Non-Home Site Sub-Total Exemptions & Adjustments Total T~m~ble Val~e Vstae $5,491,354 $23,947,556 $42,200,590 $17,684,297 $89,323,797 $3,453,194 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. 'T'ZF Anmly~i~ far N(xth PBdre bland-Find psge 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°/0 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 3urisdicHons Jurisdictions Providin~ ALL 2001-200S 20~6 2007 2008 2009 2010-2022 Increment Jurisdictions City of Corpus Christi 0.644175 Farm to Maflcet Rd. 0.005238 County Hospital 0.228028 Del Mur Jr. Collage 0.21988 Nueces County 0.350242 0.644175 0.644175 0.644175 0.005238 0.005238 0.005238 0.228028 0.228028 0.228028 0.21988 0.175904 0.131928 0.350242 0.350242 0.350242 0.644175 0.644175 0.644175 0.005238 0.005238 0.005238 0.228028 0.228028 0.228028 0.087952 0.043976 0 0.350242 0.350242 0.350242 Port of Corpus Christi 0.002117 Flour Bluff 1SD 1.526197 Fire District g2 0.022200 TOTAL 2.998077 1.447563 1.403S9 1.359611 L31564 1.27166 1.227683 No~' Ass.m no lax rates do not chm~pe Sgurce: Nueccs County Appraisal Dist~ct, Cit~ of Corpus Chri~ 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 TH* 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. T~F Anallmla for North Padre ~land - FImM Pa~3 · Fir~ 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 greater 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 Analyib; for Nod:h Padre/sland - Final Page 4 T[F REVENUE ANALYS S 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 TW 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 TI~ revenue. The second scenario generates a total tax revenue of $55.9 million of which $31.3 million is TH~ revenue. A detailed analysis follows. Real Estate Market Discussion Economics Research Associates conducted a number of telephone imerviews 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 Packepy Channel to the Gulf of 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 TW 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 ~n and Value w;L;dn Ute T~F DistHcl: Type Acre~ Land Value Improvement Total Amessed Taxable Value Value Value Condos Beach 13.45 $2,450,499 $28,962,~43 $31,413,042 $29,048,886 Across from the Beach 3.61 $281,352 $3,902,799 $4,184,151 $3,533,871 Other - I..ake Padre~ C~o.nl 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 Be~ch 53.20 $2,577,105 $4,355,083 $6,932,188 $6,932,188 Rxempt 202.86 $0 $0 $0 $0 Otller 222.24 $2,517,234 $1,669,836 $4,187,070 $4,054,928 TOTAL WATER PROPERT~S 976.95 $13,876,204 $51,429,223 $65,305,427 $60,590,839 Sours: Nueces CouuU/Appr~al Distfi~ Economics Rese~ch Associates T~F Analy~ Fro' Nuel:h Padre ~1~1 - Final Page6 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 at, er it is developed. The following Table shows average assessed value per acre by location. Table 4. Average Assessed Land Value by Location Type Acre~ Average L~nd Value (~Acre) Condo~ Beach 13.45 $180,623 Aca~ from thc Beach 3.61 $77,840 Other - Lake Padre, Canal 10.93 $133,448 Lake Padre 470.66 $9,754 Be~ch 53.20 $48,442 Exempt 202.86 $0 Other 222.24 $11,327 TOTAL WATER PROPERTIES 976.95 $17,897 Note: Total average land v~lue excludes ex~,-pt properties So~r~e: 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 Table 5. Average Condominium Assessed Value by Water hontage 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 So#r~: Nueces County Appraisal District, Economics Re. arch A~ociates The following table shows condominium properties by location, acreage, number of units, and average condominium assessed value. Table 6. Condominium Properties in the 'rZF Di~L,;ct Property Name Water Acreage Total Total Frontage Land Improvements Location Value El Constante Beachfront P~lxe Island- Beachfront C, ulfstr~am La Casa Del 8ol Lake Padre Lakeshore Villas Lake Padre Leeward Isles Lake Padre Leeward Cove Lake Padre Lorim~ Place Caue1-2 bl~s fix~m beach Mystic ~ Pac~ Channel Seahorse Across the sU~et from Nautilus Galicia Across t~ Beach Pirates Crossing & Lake Padre Sesscape V~l~ Portofino Beachfront Mmrine~ Cay Cmlal - 2 blocks fxom beach Padre Island - Ac~ss the Surfside stre~ from Pac~ Isle - Island Beachfront 8smd Dollar Canal Total To~al Total Number Av~ Assessed Taxable of Units Condo Value Value Value 3.05 $531,178 $5,317,124 $5,848,302 $5,581,554 69 $84,758 4.78 $885,669 $13,272,754 $14,158,423 $13,239,239 130 $108,911 0.70 $94,134 $889,071 $983,205 $983,205 24 $40,967 1.26 $153,552 $1,586,544 $1,740,096 $1,459,835 24 $72,504 2.58 $168,810 $2,761,688 $2,930,498 $2,897,168 87 $33,684 0.61 $75,632 $585,521 $661,153 $646,153 16 $41,322 0.43 $71,650 $303,335 $374,985 $374,985 10 $37,499 0.94 $122,904 $1,185,002 $1,307,906 $1,175,954 32 $40,872 1.03 $78,814 $1,189,358 $1,268,172 $1,017,892 26 $48,776 1.03 $67,502 $1,219,289 $1,286,791 $1,051,791 45 $28,595 0.53 $184,591 $1,233,405 $1,417,996 $1,337,959 36 $39,389 2.31 $483,538 $5,372,008 $5,855,546 $5,130,665 53 $110,482 3.51 $539,544 $2,497,196 $3,036,740 $2,261,740 136 $22,329 1.55 $135,036 $1,494,152 $1,629,188 $1,464,188 44 $37,027 3.31 $528,142 $4,812,272 $5,340,414 $5,097,429 72 $74,172 0.37 $48,184 $558,458 $606,642 $366,642 34 $17,842 27.99 $4,168,880 $44,277,177 $48,446,057 $44,086,398 838 $57,812 Sours: Nueces County Aplwais~ District, Economics Resem'ch Associates I'~F AndyMI far North Pmlre blBnd - FklM P~ge8 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 Improvements A~sessed Taxable Value Vatue 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- $225,114 $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 $0 $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 Rehash Associates Table 8. Other Non-Exempt Water Front Properties TAX ID Total L~md Total Total Total Value Improvements Assessed Taxable Value Value 3730- $152,759 $111,409 $264,168 $264,168 4793- $791,199 $276,447 $1,067,646 $1,067,646 6170- $584,752 $0 $584,752 $584,752 6205- $735,000 $0 $735,000 $735,000 1115- $174,019 $0 $174,019 $174,019 1717- $79,505 $1,281,980 $1,361,485 $1,229,343 Total $2,517,234 $1,669,836 $4,187,070 $4,054,928 Source: Nueces Couaty Appraisal Di~aict, Economics Research Associates Acreage Legal Description 8.05 Island Fainvay Estates 6.75 Mariners Cay Lots 7.58 PADRE ISLAND SEC B 60 PADRE ISLAND SEC 18 138.86 BRYAN WM SUR 606 LS 64, 129.964 ACS ICL 1.00 Compass Townhomes - 13 222.24 T~F AnM,/Mi for North Pmfre ~land - FI,mi Page9 Table 9. Exempt Properties TAX !1} 111500000010 111500000050 373000030050 616500451400 619000000005 625200000010 625200000020 Total Name Aere~e STATE OF TEXAS 138.87 STATE OF TEXAS 4.03 FLOUR BLUFF IND SCHOOL DI 6.5 CITY OF CORPUS CHRISTI 3.46 STATE OF TEXAS 0 NUECES CO 20 NUECES COUNTY TRUSTEE 30 202.86 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 Local]on - 1992-2002 Year Padre Island Waterfront L~ke aeach (All PropertY) Condos Pmb'e CAGR 1992-2002 9.10°,.6 5.99°,.6 0.77% -3.96% CAGR 1993-2002 10.14% 7.27% 5.45% -2.30% ~ource: Nueces County Appraisal District, Economics Reseo~a Associates Other Non= Waterfront Waterfront 2.03% 10.19% 2.390/0 11.06% T/F Andysb for North PmJre Idmd - Firml Peql8 10 Revenue Conclusions The following tables summarize the TH; 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 growth 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 Taxable Value Grand Total Tax Revenue Incremental TIF Revenue Accumulated TIF Revenue 2001-2005 2006-2010 2011-2015 2016-2020 $590,873,474 $909,709,774 $1,300,406,021 $1,523,320,994 $8,553,266 $11,899,730 $15,964,864 $18,701,553 $2,338,110 $6,251,011 $10,693,770 $13,430,459 $2,338,110 $8,589,122 $19,282,891 $32,713,350 S0ur~e: City of Corpus Clu'isti~ Nueces County Appraisal District, and Economics Resem'ch Associates 2021-2022 $675,226,929 $8,289,646 $6,181,2o9 $38,894,559 Table 12. Scenario 2. TIF District Taxable Value and Revenue, 2001 - 2022 Taxable Value Grand Total Tax Revenue ~ TIF Revenue Accumulated TIF Revenue 2001-2005 2006-2010 2011-2015 2016-2020 $601,808,948 $912,635,163 $1,072,871,721 $1,243,752,371 $8,711,564 $11,971,610 $13,171,464 $15,269,336 $2,496,408 $6,322,891 $7,900,370 $9,998,242 $2,496,408 $8,819,299 $16,719,669 $26,717,912 Source: City of Corpus Christi, N~ County AppTaisal District, mxd Economics Rese~ch Associates 2021-2022 $551,305,402 $6,768,283 $4,659,845 $31,377,757 T/F AnalyM~ fro' Nm'Mt Padr~ ~ - IRmd ~ 11 The following exhibit shows the growth in the TIF revenue from both scenarios. Exhibit 1. T/F Revenue Schedule, Scenarios I and 2 Tr_F Andylb for North ~ bimld - Final Page 12 The following table shows taxable values, grand tax revenue and incremental revenue from the two scenarios in thousands of dollars. Table 13. TIF Taxable Value and Tax Revenue Schedule, Scenarios 1 and 2 - ;00Z-;02; ($000s) Y~AR TAXABAL~ VALLr~ GRAND TAX '[~' REVENU~ Scenario 1 Scenario 2 Scenario I 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 $~5,892 $4,999~37 $4,382,374 $38,895 $31,378 City of Corpus Christi, Ntmces County ~ District, and Economics Reinvestment Zone Number Two City of Corpus Christi, Texas EXHIBIT B Mai): Exbting Uses and Conditions in the Zone Padre Tax Incremen Financing exss ~c,~[e In Feet (~) Copyright 1989-2001 City of Corpus Christi LEGEND 'JIF-Area (total acreage I(~]O.O~) Corpus Christi City Limit Line TIF Area Boundary Line City Of Corpus Christi, Planning Department Reinvestment Zone Number Two City of Corpus Christi, Texas EXHIBIT C Map: Proposed Improvements and Proposed Uses of Real Property in the Zone Legend S rce: Department of Development Services Reinvestment Zone Number Two City of Corpus Christi, Texas EXIHBIT D Project Costs and Estimated Cash Flows Prol~ co~ Land, easements, ROW Demolition Utility relocation Site preparaflo~ Reach 2 Mob~ization & demobilization O~glr~ F~I Mobilization & demobilization Ore.rig Ove~iepth Placement in placement areas Concrete bulkheads Anchored concrete bulle~eads ~z~ete walkway Pbmfling, e~girmring & design Malfltenaoce dredgi~ meewe(a) Mo#le BeattJe monitoring Paddng bt(b} pa~v,s & reaea~n center(b) Financing, centJngency rese~es & rounding $236,200 $82,670 $153,530 :20,834 7,292 13,542 104,073 364.26 67,647 74,219 25,977 48,242 0 0 486,881 170,408 316,473 602,939 2t 1,029 391,910 0 0 1,348,383 471,934 876~449 2,912,120 1,019,242 1,892,878 425,236 148,833 276,403 483,774 169,321 314,453 1,382,386 483,835 898,551 2,3~9,894 829,463 1,540,431 0 0 0 0 0 0 321,421 112,497 208,924 743,041 260,064 482,977 9,738,800 3,408,580 6,330,220 0 0 0 1,502,309 525,808 976,501 2,737,680 958, t88 1,779,492 1,817,840 636,174 1,18t ,466 1,400,000 1,400,000 0 1,250,000 437,500 812,500 541,000 189,350 351,650 750,000 7S0,000 0 2,000,000 2,000,000 0 1~410,683 1~410r683 $34,659,513 $15,745,274 $18,914,240 Fuadlng 8~uree~ Coq)s of Engineers $18,914,240 Se~es 2003 Bonds 2,500,000 $2,500,000 Se~es 2005 Bonds 4,330,000 4,330,000 Suqflus Tax ;r~-ements or Bo~ds(b) 3,000,000 , 3,0001000 $34,659,513 $15,745,273 (a) Ma~lntenance dredging reserve eilher to be financed from the proceeds of Series 2005 Bonds or as finds become available from surl~us tax Increments, or a mmblnation thereof. (b) Parks & recreation center and parking lot to be llnan~ed as funding become~ avallahM $18,914,240 $18,914,240 !