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ORDINANCE
APPROVING AN AMENDMENT TO THE REVISED PROJECT AND
FINANCING PLANS FOR THE REINVESTMENT ZONE NUMBER TWO,
CITY OF CORPUS CHRISTI, DATED SEPTEMBER 29, 2009, THAT
WAS ADOPTED BY THE BOARD OF DIRECTORS OF
REINVESTMENT ZONE NUMBER TWO, CITY OF CORPUS CHRISTI,
UPON RECOMMENDATION OF THE BOARD OF DIRECTORS OF THE
NORTH PADRE ISLAND DEVELOPMENT CORPORATION;
PROVIDING FOR SEVERANCE; PROVIDING FOR PUBLICATION;
AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS, THAT:
SECTION 1. The amendment to the revised Project and Financing Hans for the
Reinvestment Zone Number Two, City of Corpus Christi, dated September 29, 2009,
that was adopted by the Board of Directors of Reinvestment Zone Number Two, City of
Corpus Christi, upon the recommendation of the Board of Directors of the North Padre
Island Development Corporation, are approved. The amendment to the revised Project
and Financing Plans for the Reinvestment Zone Number Two, City of Corpus Christi,
dated September 29, 2009, are attached to and incorporated into this ordinance as
Exhibit 1.
SECTION 2. If for any reason any section, paragraph, subdivision, clause, phrase,
word or provision of this ordinance shall be held invalid or unconstitutional by final
judgment of a court of competent jurisdiction, it shall not affect any other section,
paragraph, subdivision, clause, phrase, word, or provision of this ordinance, for it is the
definite intent of this City Council that every section, paragraph, subdivision, clause,
phrase, word or provision of this ordinance be given full force and effect for its purpose.
SECTION 3. Publication shall be made in the official publication of the City of Corpus
Christi as required by the City Charter of the City of Corpus Christi.
SECTION 4. That upon written request of the Mayor or five Council members, copy
attached, the City Council (1) finds and declares an emergency due to the need for
immediate action necessary for the efficient and effective administration of City affairs
and (2) suspends the Charter rule that requires consideration of and voting upon
ordinances at two regular meetings so that this ordinance is,pRgesed and takes effect
upon first reading as an emergency measure on this the --day of March, 2011.
ATTEST: CITY OF CORPUS CHRISTI
Armando Chapa
City Secretary
ORDINANCE -- TIRZ#2 PROJECT PLAN AMENDMENT 03102011
J
Joe A m"re
Mayor
02 007
INDEXED
Page 2 of 3
APPROVED: March 17, 2011
k7gy ining
First Assistant City Attorney
For City Attorney
ORDINANCE -- TIRZ#2 PROJECT PLAN AMENDMENT 03102011
Page 3 of 3
Corpus Christi, Texas
day of G 1 , 2011
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,
Joe A ame
Mayor
The above ordinance was passed by the following vote:
Joe Adame
Chris N. Adler
Larry R. Elizondo, Sr.
0
Kevin Kieschnick
Priscilla Leal
John E. Marez
Nelda Martinez
Mark Scott
Linda Strong
029007
ORDINANCE -- TIRZ#2 PROJECT PLAN AMENDMENT 03102011
EFFECTIVE DATE
Ahe M o20/l
TAX INCREMENT REINVESTMENT ZONE #2
CITY OF CORPUS CHRISTI
PROJECT AND FINANCING PLANS
(Revised 09/29/2009 and Amended 03/22/2011)
REINVESTMENT ZONE PROJECT PLAN
This Project Plan identifies the improvements and planned expenditures that may be
funded by tax increments generated within Tax Increment Reinvestment Zone #2, City
of Corpus Christi ("TIRZ #2). No tax increments for new expenditures authorized by this
Project Plan may be expended if the tax increments are required to fund any obligations
incurred by the North Padre Island Development Corporation prior to the date of the
adoption and approval of this Project Plan.
On March 21, 2000, the Corpus Christi City Council authorized the preparation of a
preliminary financing plan for a tax increment financing district covering portions of
North Padre Island and Mustang Island. This tax increment financing would be used
primarily to provide the local share of the North Padre Island Storm Damage Reduction
and Environmental Restoration Project ("Packery Channel project"). Then on June 27,
2000, the City Council approved the preliminary Project and Financing Plans, and
notified other taxing jurisdictions of its intention to create a tax increment reinvestment
zone. A notice of a public hearing on the creation of the zone was published on August
22, 2000, and the public hearing was held on August 29, 2000. On August 29, 2000 the
City Council passed the first reading of the ordinance that established TIRZ #2.
Ordinance 024270, which established TIRZ #2 was formally adopted after being passed
on the second reading on November 14, 2000.
Subsequently on October 8, 2002, the City Council approved Resolution 025040, which
established the North Padre Island Development Corporation ("NPIDC"). The NPIDC
was created to aid, assist, and act on behalf of the City and TIRZ #2 in performing
governmental functions to promote the common good and general welfare of the City,
including the area within the TIRZ #2 zone. Then on February 25, 2003, the NPIDC,
TIRZ #2, and City Council authorized an agreement by and among the City of Corpus
Christi, Texas; Reinvestment Zone Number Two, City of Corpus Christi; and the North
Padre Island Development Corporation, dated February 1, 2003. This agreement
commonly referred to as the "Tri -Party Agreement" spells out the responsibilities of
each of the parties in the administration and financing of TIRZ #2. The three entities
also recommended, authorized, and approved the Project and Financing Plans for
TIRZ #2 on February 25, 2003.
The initial Project Plan and Financing Plan basically addressed the funding of the City's
share of the North Padre Island Storm Damage Reduction and Environmental
Restoration Project. The Packery Channel project had been discussed and studied
over a number of years. The project involved the placement of sand in front of the
concrete Padre Island Seawall to restore the beach and protect the seawall. The sand
was to be taken from the dredging and channelization of a reopened Packery Channel.
The Packery Channel project also consisted of long jetties, walks, mitigation, public
Revised TIRZ#2 Project Plan Amendment 03222011 -- clean
Page 1 of 9
facilities, and reserve for long-term maintenance. The estimated cost of the Packery
Channel project was approximately $30 million.
The Packery Channel project was included in Section 556 of the Water Resources
Development Act of 1999. The Act also required the U. S. Army Corps of Engineers
(USACOE) to undertake two studies: (1) to determine if the project is environmentally
acceptable and (2) to determine if the project is technically sound. A relatively small
amount of money was made available by the Federal government for the studies.
The local share of the project, which was estimated at approximately $10.5 million,
could come from tax increment financing. This type of financing was authorized by a
State Constitutional Amendment. The basic theory of tax increment financing is that
"the construction of certain public improvements will generate higher tax revenues due
to additional private development." The concept of tax increment financing is "but for
the construction of the public improvements, the higher tax receipts would not occur." In
this particular case, the City believed that completion of the project would result in
significantly increased taxes through both new private investment and increases in the
existing tax values.
The preliminary financing plan that was adopted by the City Council, when it authorized
the creation of TIRZ #2, called for funding $10.5 million as the City's share of the
Packery Channel project, plus $750,000 for construction of the parking lot on the Padre
Island concrete seawall. The estimates in the preliminary financing plan were refined,
and the current Project and Financing Plans, dated February 1, 2003, estimated that
$12,000,000 in debt would be needed to complete the initial project costs. The plans
identified $3,000,000 in surplus tax increments or bonds for secondary development
improvements, which included the construction of seawall parking lot and $2,000,000
for a "parks & recreation center." A copy of the projected project costs from the 2003
plans is attached to and incorporated into this plan as Exhibit A.
Under §311.011(b)(1), Texas Tax Code, the Project Plan must have a map showing
existing uses and conditions of real property in the zone, and a map showing proposed
improvements to and proposed uses of that property. A map of TIRZ #2 is attached as
Exhibit B, and is incorporated into this plan. A map of the current land uses within TIRZ
#2 and the surrounding area is attached as Exhibit C, and is incorporated into this plan.
A map of the current zoning within TIRZ #2 and the surrounding area is attached as
Exhibit D, and is incorporated into this plan. A map of the future land uses within TIRZ
#2 and the surrounding area based on the City Comprehensive Plan's Future Land Use
Pian, adopted May 24, 2004 (Ordinance 026278), is attached as Exhibit E, and is
incorporated into this plan. The Island Action Group Capital Improvement Priorities
Report, dated 10/14/2005, which identifies needed capital improvements on Mustang
and Padre Islands, including the areas within TIRZ #2, has been reviewed to identify
improvements that could be funded through the tax increments developed within
TIRZ #2.
Revised TIRZ#2 Project Pian Amendment 03222011 -- clean
Page 2 of 9
Exhibit F is a map showing specific projects that are included in this Project Plan. That
exhibit is incorporated into this plan. All of the specific projects are situated on public
land and involve recreational use and activities.
Under §311.011(b)(2), Texas Tax Code, the Project Plan must address proposed
changes of zoning ordinances, the master plan of the municipality, building codes, other
municipal ordinances, and subdivision rules and regulations, if any, of the county, if
applicable.
While the City is in the process of adopting a unified development code that will replace
the current zoning and platting ordinances, there are no substantive changes being
recommended that would affect TIRZ #2. At the time of adoption of this Project Plan,
there are no pending cases to rezone properties within TIRZ #2. The City is considering
rezoning portions of the property that it leases from the Texas General Land Office
("GLO"). As a condition of the GLO lease, the City is required to prepare a
development plan for any commercial development on the leased property. While a
draft Packery Channel development plan has been prepared and presented to the City
Council, Planning Commission, GLO, Nueces County Parks Board, Nueces County
Dune Committee, and City Beach Advisory Committee, for incorporation into the
Mustang Padre Island Area Development Plan, the City Council has not officially
adopted the plan, and the City is discussing features of the proposed plan with the GLO.
The City will propose rezoning to match the needs identified in the Packery Channel
development plan.
The City is working with GLO on the voter approved proposed changes to Chapter 10,
Code of Ordinances, which contains the City's GLO approved beach and dune rules.
This proposed change addresses driving on the beach seaward of the concrete Padre
Island seawall, and the installation of bollards on the beach seaward of the concrete
seawall and between the seawall and southern Packery Channel jetty. There are no
other proposed changes to the City's beach or dune permitting rules.
However, the Nueces County Beach Management Committee has recommended
approval of the changes to their beach management regulations. The Nueces County
Commissioners' Court has not approved the changes, and they have not been sent to
the GLO for public comment in Texas Register.
Under §311.011(b)(3), Texas Tax Code, the Project Plan must contain a list of
estimated nonproject costs. The City has been trying to obtain additional Federal
funding to cover some of the costs of the recreational enhancements within the North
Padre Island Storm Damage Reduction and Environmental Restoration Project and
repairs to storm damage from Hurricane Ike. The City will also seek grants and other
funding opportunities from the State of Texas and others to offset some of the costs
identified in this Project Plan. The level of that funding, if any, that can come from
Federal, State, or other funding sources is not known. To the extent Federal, State, or
other funding is received, the amount of tax increments that need to be dedicated to
completing these improvements will be reduced.
Revised TIRZ#2 Pro{ect Plan Amendment 03222011 -- clean
Page 3 of 9
Under §311.011(b)(4), Texas Tax Code, the Project Plan must contain a statement of a
method of relocating persons to be displaced as a result of implementing the plan.
None of the proposed improvements should result in relocation of any person; therefore
this requirement is not applicable to the implementation of this plan.
REINVESTMENT ZONE FINANCING PLAN
Under §311.011(c)(1), the Reinvestment Zone Financing Plan must contain an
Estimated Project Cost Description, and under §311.011(c)(2), it must describe the
Kind, Number, and Location of TIRZ Improvements.
Under this Project Plan and Reinvestment Zone Financing Plan, the following
improvements and activities may be funded from current available revenues:
Packery Channel Project Area Improvements:
Subject to the availability of the estimated $4,700,000 in the TIRZ #2 tax
increment fund and funding from the Federal Government as authorized
by the Water Resources Development Act, construction of the
improvements in the TIRZ#2 referendum voter information sheet and
Phase 2 -7 Packery Channel public recreational improvements and
amenities shown on the engineering drawings referred to as the Packery
Channel "Six Pack," which is incorporated into this Project Plan as Exhibit
G. The engineering cost estimate for the Phases 2 - 7is shown in Exhibit
H. Construction of the Phase 4 ADA ramps is contingent upon approval of
the General Land Office of the installation of temporary hard parking
surfaces for parking for the disabled on the beach at the end of the ADA
ramps.
Installation of aids to navigation along Packery Channel, which are
estimated at approximately $100,000.
Relocation of approximately 15,000 cubic yards of sand located seaward
of the northern end of the Padre Island concrete seawall to renourish the
beach in located seaward of the central and southern portions of the
seawall, which is estimated to costs approximately $69,000.
Improvements in other areas within TIRZ #2:
A specific list of projects will be developed in consultation with various
organizations and interested residents of North Padre Island and
businesses located within TIRZ #2. These projects may include projects
to acquire, construct, reconstruct, or install public works, facilities, or sites
or other public improvements, including landscaping, utilities, streets,
street lights, water and sewer facilities, pedestrian malls and walkways,
parks, flood and drainage facilities, or parking facilities, but not including
educational facilities.
Revised TIRZ#2 Project Plan Amendment 03222011 -- clean
Page4of9
As required by §311.011(c)(3), an updated economic feasibility Study for TIRZ #2 was
completed by CDS Market Research Spillette Consulting in September 2009. It is
provided in a separate document.
Under §311.011(c)(4), the Project Plan and Reinvestment Zone Financing Plan must
include an estimate of bonded indebtedness. TIRZ #2 may be used to support bonded
debt issued to fund specific projects, or the project costs may be funded on a pay-as-
you-go basis, or utilize other financing methods.
Under §311.011(c)(5), the Project Plan and Reinvestment Zone Financing Plan must
describe the timing of incurring costs or monetary obligations. TIRZ #2 project costs will
be incurred over the life of the Zone based on its Board of Directors' identification of
priority activities and projects, opportunities for implementation, and available revenues
to sustain a pay-as-you-go project expenditure approach, a bonded debt issuance, or
other forms of project financing.
Under §311.011(c)(6), the Project Plan and Reinvestment Zone Financing Plan must
describe the methods of financing and sources of revenue. TIRZ #2 could use several
methods of financing, including but not limited to the following:
• Cash funds generated from existing property value increment,
• Bonded debt issuances backed by TIRZ #2 revenue to fund the associated debt
service,
• Short term anticipation notes or other debt issued by private financial institutions
based on projected property tax increment to be generated from taxable
development under construction at the time of debt issuance, and
• Developer cash reimbursement agreements where the revenues from TIRZ #2
property tax increment compensate a developer for fronting eligible expenditures in
a specific taxable project after the project is completed.
The term of any debt for which debt services payments are to be funded by TIRZ #2
revenue will not extend past the duration of TIRZ #2.
The primary source of revenue for TIRZ #2 will be funds from the contributed property
tax collections of the City of Corpus Christi, Nueces County, Nueces County Hospital
District, Del Mar College, and the Farm to Market Road on the taxable property value
increment within TIRZ #2. Based on existing interlocal agreements with each taxing
jurisdiction listed above, it is currently projected that each of these entities will agree to
participate in funding TIRZ #2 with 100% of the incremental property taxes collected
over the life of zone, except for Del Mar College, which will contribute 20% in 2009 and
0% thereafter. The assessed value base year for all participating taxing entities is 2000.
Based upon 2008 tax rates for each jurisdiction, the projection of incremental property
tax revenue contributed to TIRZ #2 is as follows:
Revised TIRZ#2 Project Plan Amendment 03222011 -- clean
Page 5 of 9
Sources of Revenuer
Tax Year
City of
Corpus
Christi
Nueces
County
Nueces
County
Hospital
District
Del Mar Jr.
College
Farm to
Market
Road
Total
2009
1,597,917
985,617
406,158
137,838
12,165
3,139,695
2010
1,273,417
786,419
324,072
-
9,709
2,393,616
2011
1,203,508
745,121
307,054
-
9,201
2,264,884
2012
1,372,033
849,855
350,213
-
10,494
2,582,595
2013
1,519,533
941,476
387,968
-
11,625
2,860,601
2014
1,645,468
1,019,647
420,181
-
.12,590
3,097,886
2015
1,761,879
1,091,870
449,943
-
13,481
3,317,173
2016
2,162,313
1,340,366
552,345
16,549
4,071,572
2017
2,615,229
1,621,428
668,166
-
20,018
4,924,842
2018
3,127,882
1,939,557
799,263
-
23,945
5,890,647
2019
3,708,557
2,299,895
947,753
-
28,393
6,984,598
2020
4,366,726
2,708,317
1,116,057
-
33,435
8,224,535
2021
5,113,212
3,171,538
1,306,944
-
39,153
9,630,847
2022
5,960,390
3,697,237
1,523,577
-
45,642
11,226,846
Total
37,428,065
23,198,342
9,559,692
137,838
286,400
70,610,338
1 Assumes 95% tax collection rate.
These revenue projections assume a 95% tax collection rate for all three taxing
jurisdictions. According to these projections, 53.0% of the tax increment revenues will
come from the City, 32.9% will come from the County, 13.5% will come from the County
Hospital District, 0.2%% will come from Del Mar College, and 0.4% will come from the
Farm to Market Road.
Zone property tax contributions from the participating tax jurisdictions could be
supplemented with other sources of revenue as available. These could include but are
not limited to:
• Grants from other local, state, and federal agencies;
• Grants from private entities such as foundations; and
• Joint implementation and funding agreements with other public agencies or private
entities such as civic associations for specific projects.
Under §311.011(c)(7), the Project Plan and Reinvestment Zone Financing Plan must
give the current appraised value of the zone. According to the Nueces County
Appraisal District, the 2009 certified taxable appraised value for the Zone is
$356,833,583 for the City of Corpus Christi, $ 353,059,772 for Nueces County and the
County Hospital District, $ 358,753,875 for Del Mar College, and $ 352,808,877 for
Farm to Market Road. Due to outstanding property accounts under value protest, these
certified values will increase over time.
Revised TIRZ#2 Project Plan Amendment 03222011 -- clean
Page 6 of 9
Under §311.011(c) (8), the Project Plan and Reinvestment Zone Financing Plan must
provide an estimate of the captured appraised value for TIRZ #2 during the years of its
existence. The table on the next page provides the projected schedule of taxable value
increment captured by the zone over remainder of its duration. Due to differences in
policies regarding exemptions and tax abatements, the captured increment differs
among the participating jurisdictions. Therefore, there is a table shown for each entity.
Under §311.011(c)(9), the Project Plan and Reinvestment Zone Financing Plan must
state the duration of TIRZ #2. The zone has thirteen tax years remaining and will expire
after 2022.
Revised TIRZ#2 Project Plan Amendment 03222011 -- clean
Page 7 of 9
Estimated Captured Appraised Value
PROJECTED ASSESSED VALUE
Tax
Year
City of Corpus
Christi
Nueces County
Nueces County
Hospital District
Del Mar Jr.
College
Farm to Market
Road
2009
380,825,433
377,027,804
377,027,804
382,757,294
376,776,909
2010
320,245,351
317,347,217
317,347,217
321,720,450
317,163,481
2011
307,194,087
304,974,332
304,974,332
308,324,444
304,840,076
2012
338,655,659
336,353,086
336,353,086
339,828,313
336,214,560
2013
366,192,055
363,803,032
363,803,032
367,408,871
363,660,078
2014
389,702,663
387,223,386
387,223,386
390,965,597
387,075,840
2015
411,435,230
408,861,715
408,861,715
412,746,329
408,709,405
2016
486,191,313
483,312,318
483,312,318
487,658,942
483,142,951
2017
570,745,210
567,519,915
567,519,915
572,390,395
567,331,227
2018
666,451,157
662,832,970
662,832,970
668,297,914
662,622,374
2019
774,856,231
770,791,945
770,791,945
776,931,996
770,556,480
2020
897,728,294
893,157,125
893,157,125
900,064,425
892,893,404
2021
1,037,088,042
1,031,940,526
1,031,940,526
1,039,720,393
1,031,644,672
2022
1,195,245,758
1,189,442,482
1,189,442,482
1,198,215,334
1,189,110,054
ASSESSED VALUE INCREMENT
Tax
City of Corpus
Nueces County
Del Mar Jr.
Farm to Market
Year
Christi
Nueces County_Hospital
District
College
Road
2009
298,311,566
295,295,463
295,295,463
300,048,697
295,195,765
2010
237,731,484
235,614,876
235,614,876
239,011,853
235,582,337
2011
224,680,220
223,241,991
223,241,991
225,615,847
223,258,932
2012
256,141,792
254,620,745
254,620,745
257,119,716
254,633,416
2013
283,678,188
282,070,691
282,070,691
284,700,274
282,078,934
2014
307,188,796
305,491,045
305,491,045
308,257,000
305,494,696
2015
328,921,363
327,129,374
327,129,374
330,037,732
327,128,261
2016
403,677,446
401,579,977
401,579,977
404,950,345
401,561,807
2017
488,231,343
485,787,574
485,787,574
489,681,798
485,750,083
2018
583,937,290
581,100,629
581,100,629
585,589,317
581,041,230
2019
692,342,364
689,059,604
689,059,604
694,223,399
688,975,336
2020
815,214,427
811,424,784
811,424,784
817,355,828
811,312,260
2021
954,574,175
950,208,185
950,208,185
957,011,796
950,063,528
2022
1,112,731,891
1,107,710,141
1,107,710,141
1,115,506,737
1,107,528,910
Revised TIRZ#2 Project Plan Amendment 03222011 -- clean
Page 8 of 9
LIST OF EXHIBITS
Exhibit A Packery Channel Project Costs and Funding from Project and
Financing Plans dated February 1, 2003
Exhibit B Map of TIRZ #2
Exhibit C Current land use map
Exhibit D Current zoning map
Exhibit E Future land use map
Exhibit F Project Plan Map (revised 03172011)
Exhibit G "Six Pack" engineering drawings
Exhibit H "Six Pack" engineering cost estimates (revised 03172011)
Exhibit I Seawall Sand Movement & Relocation Project drawing
Revised TIRZ#2 Project Plan Amendment 03222011 -- clean
Page9of9
State of Texas
County of Nueces
}
}
PUBLISHER'S AFFIDAVIT
CITY OF CORPUS CHRISTI
Ad # 5964326
PO #
Before me, the undersigned, a Notary Public, this day personally came
GEORGIA .LAWSON, who being first duly sworn, according to law, says that she
is LEGAL SALES REPRESENTITIVE AND EMPLOYEE OF THE PUBLISHER,
namely, the Corpus Christi Caller -Times, a daily newspaper published at
Corpus Christi in said City and State, generally circulated in Aransas, Bee,
Brooks, Duval, Jim Hogg, Jim Wells, Kleberg, Live Oak, Nueces, Refugio, and
San Patricio, Counties, and that the publication of, NOTICE OF PASSAGE OF
ORDINANCE NO. 02900 which the annexed is a true copy, was inserted in the
Corpus Christi Caller --Times on the 3/2812011., 3128,/2011.
$ 114.21
1Time(s)
LEGAL SALES REPRESENTIVE
�son
On this \ day of I U t,,, 1r r n
, 20 I certify that the attached document
is a true and an exact copy made by,publisher.
MICHELLE JOYCE CABRERA
MY COMMISSION EXPIRES
March 19,2012
Notary Public, State of fT:► as
C;N
CALLER -TIMES « March 28 2011r'cc•;3E
Leal Notices 1110
NOTICE :OF
PASSAGE OF
ORDINANCE
NO 029007
Ord. approving an
amendment to the re-
vised Project {8,
nancing Plans for the
Reinvestment 'Zone
Number Two City of
Corpus 'Christi, dated
September 29,'2009,
that was adopted by
the Board of Direc-
tors of Reinvestment
Zone <Number:Two,'
City of Corpus Chrls-
ti upon recommen-
dation of the Board of
Directors ofthe North`
Padre .lsratid Level
opment ; Corporation.
This ordinance was
passed an approved
by the'Corpus Christy.
City ;:Council on
Marchs22. 2011.
Is/ Armando: Chapa.
City Secretary
L