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HomeMy WebLinkAbout029993 ORD - 10/29/2013Ordinance approving and adopting an amendment to the Revised Project and Financing Plans for Reinvestment Zone Number Two, City of Corpus Christi, dated September 29, 2009, as recommended by the Island Strategic Action Committee, the Board of Directors North Padre Island Development Corporation, and the Reinvestment Zone #2 Board of Directors; approving and adopting the Reinvestment Zone Number Two, City of Corpus Christi FY 2013 -2014 Budget as recommended by the Island Strategic Action Committee, the Board of Directors North Padre Island Development Corporation, and the Reinvestment Zone #2 Board of Directors; appropriating and transferring $510,000 from the Unreserved Fund Balance in Fund 1111 Reinvestment Zone #2 to and appropriating in the No. 3278 Packery Channel Projects TIF #2 fund for the approved Fiscal Year 2014 projects; Changing the FY 2014 Operating Budget adopted by Ordinance No. 029915 to increase expenditures by $510,000; and authorizing the City Manager, or his designee, to execute Amendment No. 8 to the contract between the City and Texas A & M University - Corpus Christi in the amount of $349,755 for a restated fee not to exceed $1,897,783 for Packery Channel Monitoring Fiscal Year 2013 -2014. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The amendment to the Revised Project and Financing Plans for the Reinvestment Zone Number Two, City of Corpus Christi, dated September 29, 2009, which has been previously amended on March 22, 2011, as recommended by the Board of Directors, Reinvestment Zone #2, Board of Directors, North Padre Island Development Corporation and by the Island Strategic Action Committee (Amendment to TIRZ #2 Revised Project and Financing Plans 102213) is adopted. The Amendment to the TIRZ #2 Revised Project and Financing Plans 102213 is attached to and incorporated into this Ordinance as Exhibit 1. SECTION 2. The City Council adopts the Reinvestment Zone Number Two, City of Corpus Christi FY 2013 -2014 Budget as recommended by the Island Strategic Action Committee, the Board of Directors Reinvestment Zone #2, and the Board of Directors North Padre Island Development Corporation (TIRZ #2 FY 2013 -2014 Budget) which is attached to and incorporated into this resolution as Exhibit 2. SECTION 3, An amount of $510,000 from the Unreserved Fund Balance in No. 1111 Reinvestment Zone No, 2 Fund is appropriated and transferred and appropriating into the No. 3278 Packery Channel Projects No. 2 TIF Fund for the approved Packery Channel Miscellaneous Improvements Project. SECTION 4. The FY 2013 Operating Budget adopted by Ordinance No. 029915 is changed to increase expenditures by $510,000. SECTION 5. The City Manager or designee is authorized to execute Amendment No. 8 with Texas A & M University — Corpus Christi in the amount of $349 „755 for a restated fee not to exceed $1,897,783 for the Packery Channel Monitoring Fiscal Year 2013 -2014 project. Armando Chapa City Secretary CITY `e F CORP S CHRISTI Nelda Martinez Mayor ;?, 0 „ INDEXEI�uu,�e . That t e fo oing grdi a ce was read for the first time and passed to its second reading on this the -y of Aar iO(,Lby the following vote: Nelda Martinez Kelley Allen Rudy Garza Priscilla Leal David Loeb Chad Magill Colleen McIntyre Lillian Riojas Mark Scott ThVheprqgoing o i . nee was read for the second time and passed finally on this the ay of 1 .f PA 2_0 l 3 , by the following vote: Nelda Martinez Kelley Allen Rudy Garza Priscilla Leal David Loeb PASSED AND APPROVED, this the ATTEST: Chad Magill Colleen McIntyre Lillian Riojas Mark Scott th day of 04.) Armando Chapa City Secretary Nelda Martinez Mayor 0 2 9 9 '9 CITY OF CORPUS CHRISTI CERTIFICATION OF FUNDS (City Charter Article IV, Sections 7 & 8) 1, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly authorized representative), hereby certify to the City Council and other appropriate officers that the money required for the current fiscal year's portion of the contract, agreement, obligation or expenditure described below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has not been appropriated for any other purpose. Future payments are subject to annual appropriation by the City Council. City Council Action Date: October, 2013 Agenda Item: Ordinance approving and adopting an amendment to the Revised Project and Financing Plans for Reinvestment Zone Number Two, City of Corpus Christi, dated September 29, 2009, as recommended by the Island Strategic Action Committee, the Board of Directors North Padre Island Development Corporation, and Reinvestment Zone #2 Board of Directors; approving and adopting the Reinvestment Zone Number Two, City of Corpus Christi FY 2013 -2014 Budget as recommended by the Island Strategic Action Committee, the Board of Directors North Padre Island Development Corporation, and Reinvestment Zone #2 Board of Directors; appropriating and transferring $510,000 from the Unreserved Fund Balance in Fund 1111 Reinvestment Zone #2 to and appropriating in the No. 3278 Packery Channel Projects TIF #2 fund for the approved Fiscal Year 2014 projects; Changing the FY 2014 Operating Budget adopted by Ordinance No. 029915 to increase expenditures by $510,000; and authorizing the City. Manager, or his designee, to execute a Amendment No. 8 to the contract between the City of Corpus Christi and Texas A & M University - Corpus Christi in the amount of $349,755 for a restated fee not to exceed $1,897,783 for Packery Channel Monitoring Fiscal Year 2013 -2014. Amount Required: Fund Name Reinvestment Zone #2 Packery Channel Projects TIF #2 $ 510.000 Account No. 251850 352050 Fund No. 3278 Org. No. 60000 00000 Project No. E13083 Amount (510,000) 510,000 Total ['Certification Not Required 0 Director of Financial Services Date: OCT 1 8 2013 CITY OF CORPUS CHRISTI CERTIFICATION OF FUNDS (City Charter Article IV, Sections 7 & 8) I, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly authorized representative), hereby certify to the City Council and other appropriate officers that the money required for the current fiscal year's portion of the contract, agreement, obligation or expenditure described below is in the Treasury to the credit of the Fund specified below, from which it is to be drawn, and has not been appropriated for any other purpose. Future payments are subject to annual appropriation by the City Council. City Council Action Date: Agenda Item: October g 2013 Ordinance approving and adopting an amendment to the Revised Project and Financing Plans for Reinvestment Zone Number Two, City of Corpus Christi, dated September 29, 2009, as recommended by the Island Strategic Action Committee, the Board of Directors North Padre Island Development Corporation, and Reinvestment Zone #2 Board of Directors; approving and adopting the Reinvestment Zone Number Two, City of Corpus Christi FY 2013 -2014 Budget as recommended by the Island Strategic Action Committee, the Board of Directors North Padre Island Development Corporation, and Reinvestment Zone #2 Board of Directors; appropriating and transferring $510,000 from the Unreserved Fund Balance in Fund 1111 Reinvestment Zone #2 to and appropriating in the No. 3278 Packery Channel Projects TIF #2 fund for the approved Fiscal Year 2014 projects; Changing the FY 2014 Operating Budget adopted by Ordinance No. 029915 to increase expenditures by $510,000; and authorizing the City Manager, or his designee, to execute a Amendment No. 8 to the contract between the City of Corpus Christi and Texas A & M University- Corpus Christi in the amount of $349,755 for a restated fee not to exceed $1,897,783 for Packery Channel Monitoring Fiscal Year 2013 -2014. Amount Required: Fund Name $ 349.755.0Q Packery Channel Projects TIF #2 Account No. 550950 Fund No. Org. No. 3278 00000 Project No. E13083 Amount $349,755.00 Total 0 Certification Not Required $349,755.00 OCT 1 8 2013 Reinvestment Zone Number Two City of Corpus Christi, Texas Project Plan and Reinvestment Zone Financing Plan February 25, 2003 Exhibit A Page 6 of 39 Reinvestment Zone Number Two, City of Corpus Christi, Texas February 25, 2003 Project Plan and Reinvestment Zone Financing Plan Introduction to The Project and Finance Plan General Background As required under the Tax Increment Financing Act, Chapter 311, Texas Tax Code (the "TIF Act"), the Board of Directors ( the "Zone Board") of Reinvestment Zane Number Two, City of Corpus Christi, Texas (the "Zone "), has prepared this Project Plan and Reinvestment Zone Financing Plan (the "Plan"). The City Council ofthe City of Corpus Christi, Texas ( the "City") and the Zone Board must both adopt this Plan The Plan includes information concerning proposed land uses and development, estimated project and non - project costs and administrative expenses, en,gineering studies, proposed financing and economic feasibility data, and ply appraisal data. The Plan includes financing of the Zone's portion of the North Padre Island Storm Damage Reduction and Enviroai Restoration Project ( the "Project'). This Plan sets out the details of the tax and economic benefits derived from development of the Project Site, the scope of the Project, and the financing strategy for funding of Project costs through the issuance of bonds. Complete copies of the Plan, including a report attached to this Plan, as Exhibit A, entitled "Forecast of Potential TIF Revenue Flows on North Padre Wand", prepared by Economics Research Associates (" ERA "), which constitutes the economic feasibility study required by the TIF Act, are available foam the City of Corpus Christi, Texas, 1201 Leopard Street, Corpus Christi, Texas 78401, Attention: City Secretary. North Padre Island Storm Damage Reduction and Environmental Restoration Project The Project is a project of the U.S. Army Corps of Engineers ( the " Corps") to dredge and rhaenrli7^ a reopened waterway ("Packay Channel") between the Laguna Madre Intracoastal Waterway and the Gulf of Mexico. In addition to the Packay Charnel, the Project includes construction by the Corps of two 1,400 foot jetties paralleling the Packay Channel. Of the total 530,000,000 projected cost of the Project, the City as Project sponsor bas 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 Zane Project costs through the issuance of bonds by the North Padre Island Development Corporation (the "Issuen and -foe proft local govamnnent corporation. It was established by the City under the provisions of Chapter 431, Texas Transportation Code, and the general laws of the State of Torras to aid, assist, and act on behalf of the City lathe performance of the City's governmaitai f motions and to provide a nneans of &lancing certain Project costs in connection with the Zone. The Corps was directed by the Congress of the United States ("Congress") to carry out a project for ecosystem restoration and stoma dotage reduction at North Padre island. The Project will =taxi theadsting approximately 2.6 miles portion of the Packay Chanrrnel an additional 0.9 mile. The Project is described in the Envi anna tat Impact Statement (EIS), as are the benefits and impacts to be expected from the Project.. Erosion of the beach in front of the seawall just south of the boundary between Mustang and North Padre Islands is causing a loss of recreational beach. Dredging Palmy Channel would provide sand for nourishment ofthe beac, and an enlarged beach would reduce potential Mae atom damage. A Project Study Plan, prepared by the Carps in 1999, examined three alternative sites, including Pacaery Channel. Three different channel widths under three differan salinity regimes were also examined to detan i ne the enviroomerital benefits elan opening between the Laguna Madre and the Gulf of Marko. The enviromnental 1 Exhibit A Page 7 of 39 benefits of all alternatives were essentially negligible. The final EIS will be available upon publication by the Corps from the City of Corpus Christi, Texas, 1201 Leopard Street, Corpus Christi, Texas 78401, Attention: City Secretary. The Project is a project for ecosystem restoration and storm damage reduction consisting of a jetted entrance channel, main channel dredged to a required depth of 14 feet and a bottom width of 116 feet up to the Texas Highway 361 bridge, scour protection for the existing bridge, concrete bulkheads on both sides of the main channel creating three placement areas to create shallow water habitat, continuing with a smaller channel along the existing alignment of Packery Channel from the highway bridge to the Gulfhntraooastal Waterway, dredged to a required depth of 7 fat and bottom width of 80 feet, installation of a 30 inch HDDPE pipe for a sand bypass system, beach nourishment on the beach south of the ehaanel and miscellaneous utility removals and relocations. The Project consists of dredging a 134 -foot wide quarrel to connect the existing Packery Channel to the Gulf of Mexico to a 12 -foot deep authorized depth (requiring an initial dredge depth to -14 feet) and dredging the edsmg channel to a depth of -7 feet (mean sea level) and a width of 80-feet. The total largth of the proposed channel from the Gulf cad of the jetties to the Gulf Intracoastal Waterway is approximately 18,500 feet (3.5 miles). Approximately 801,200 cubic yards (cy) of material will be dredged during construction, most of which (646,000 cy) will be placed on the beach south of the proposed jetties placaneat area (PA -4S) for storm damage induction in front of the existing concrete seawall. Sandy maintenance material from the channel cast of the SH 361 bridge will be used for beach nourishment, and a sand bypass system will be designed to move accumulated sand from longahore drift to the downdrift side of the jetties. Approximately 15,000 cy of estimated mains 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 519.5 million needed to complete the Project to be funded by the United States Government under the Project Contract. As of February 25, 2003, Congress has appropriated 54 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 Packory Channel, as described above. It is anticipated that upon completion of the initial Project, the estimated maintmanoe dredging will comcnaeee in 2008, and the estimated cost of such maintenance dredging in that yea will approximate 5350, 000. The costs of the maintenance dredging are intended to be paid by the Zone, either from tax increment collections, proceeds from bonds, a combination of those two sources, or other moneys made available to the City or the Zone for such purpose. Secondary development within the Zone that includes public improvements is being proposed by the City as Iocal sponsor. Secondary duel; includes proposed park amenities that aicompass approximately 14.2 acres providing access to Packery Channel, the beach, and the jetties; passenger and recreational vehicle parking; walkways; restroorns; and vendor facilities. The locaiion of two potential City park am is proposed along the area nearest the Gulf of Mexico reach of Packery Channel. The Project, the maintenance dredging ofthe Packny Channel, and the public of p r associated wi hlhe proposed second,aay developmag are formd to be "Project Costs" as such term is defined in the TIF Act. The Project Contract The Project is to be constructed by the Carps under the Project Contract. The Project Contract has not been approved by either the Caps or the City, but the City arpects eoeeartiCn ofthe Contract by bothpartiea by Spring 2003. Under the Project Contract, the Corps, subject to receiving finds by Cangr+oss and using the 2 Exhibit A Page 8 of 39 funds expected to be provided by the City through the Issuer, would agree to expeditiously construct the Project. The Project Contract recognizes that Congressional appropriations to date are less than the amount of fakral funds required for completion of the Project, and that in the event insufficient funds are appropriated for the federal government's share of Project costs, then Project construction will be suspended or the Project Contract terminated. The federal government expressly makes no commitment to seek additional federal funds for the Project. The City would agree to contnbute 35% of the total Project costs, at least five percent of which must be contributed in cash with the remainder being the appraised value of cash or lands, easements, rights way, and suitable burrow and dredged or excavated material disposal areas. The City must deposit its share of projected financial obligations for construction through the first fiscal year of construction within 45 days ofnotioe fraunn the Corps. For each subsequent year, the deposit must be made no later than 60 days prior to the beginning of the fiscal year. The Project Contract obligates the City to operate, maintain, repair, replace, and rehabilitate the entire Project at no cost to the federal government. The City is seeking transfer of a portion of the maintenance cost to the Corps, but at this time no provision has been made for payment of ongoing maintenance costs. Fumdiag of a maintenance reserve from proceeds of an additional series of Tax Increment Contract Revenue Bonds is contemplated by this Plan, but these is no assurance that a maintenance reserve will be fimded, nor is there any guarantee that if funded the maintenance reserve would be adequate to pay costs of ongoing maintenance dredging. Reinvestment Zone Number Two, City of Corpus Christi, Texas The Zone was meted by the City pursuant to the TIF Act to facilitate development of the land within the boundaries of the Zone, a 1, 947. 01 -acre parcel located entirely within the City and die County. y. The Zenc became effective on November 14, 2000, and will terminate on December 31, 2022, or at an earlier time designated by subsequent ordinance of the City, or at such earlier tine that all Zane Project Costs, tarot bonds, and tine interest on all tax incrane nt bonds, have been paid in full (the duration of the Zone). The Zonc is leaded on Padre Isl and, and intersected by State Highway 361 and Park Road 22 leading from the John F. Kennedy Causeway. A map showing the existing uses and conditions of teril property in the Zone is attached to this Plan as Exhibit B. A map showing the proposed improvements to and proposed uses of the real property in the Zone is attadndto this Plan as Exhibit C. Pursuant to the TIF Act, the ardinarrce of the City establishing the Zone also established a Board for the Zane. The Zone Board consists of 12 persons, with one member from each Participant other than the City, and the remainder (but not less than 10) appointed by the City. Samuel L. Neal Javier D. Colinas= Bran Chesney Rear Kirmison him Longoria Jesse Ncyola Mark Scott Gabriel Rivas Cal Jennings Richard Pittman John LaRue President Vice President Member Member Member Member Member Member Member Member Member Member 3 &labial& City of Carpus Christi Nuxen County City of Capes Christi City of Capes Christi City of Caws Christi City of Corpus Citsisti City of Corpus anisd City of Carpus Christi Del Mar College Nueces Hospital Dim Flour Bluff Itwagxadult School District Part of Corpus Christi Authority Exhibit A Page 9 of 39 Existing Land Use Existing land -uses within the Zone consist of light commercial development, mixed residential development, vacant unimproved land, and non - developable land, including waterways, roadways and parks. The City has estimated the following current usage within the Zone: !La Ansa 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 1.8071 Total 1.247.0134 Infrastructure Ruts for Development It is the City's policy that infrastructure required for new development within the Zone will be the responsibility of each landowner or developer, similar to any other development that occurs in the City. The wastewater treatment plant and trunk main collects system is in place and is of sufficient capacity to accommodate new development, and sufficient freshwater supply is available to serve anticipated development within the Zone. There are gully roads and streets throughout the Zone, though individual tracts may require additional street construction, sewer collect ion lines, or water supply lines for developmenrt. The City pays for oversize and extra depth costs associated with water and wastewater extensions that are designed to savim property outside or Mond the owner's development. The City participates in street development topay the additional casts for extra width associated with arterial streets or collectors that are designed to be extended beyond the developer's property. The City also pays for the costs of brims and culverts to extend streets beyond the developer's may Undeveloped Land Within the Zone Approximately 857 acres within the Zone are unimproved or underdeveloped Lad. The Cityanticktates that such unimproved land will be developed for residential and light commercial use consistent within existing uses, and additional development must occur before the Issues can provide for the payment of additional Tax Ina-anent Contract Revenue Bonds (hantinathYdefined) required for completion ofthe Project without adversdy the Issuer's ability to pay debt service on the Series 2003 Bonds (hereinafter dchned), No radon 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 improvanents to be undertaken is the Zone, shown by g k, nm ber of Pa cka y and lc atin, Chann el, an d d ac the m aintma noe Feled ost s d rf gin g the Z ncos, t s, inch withat Projecteosts, the costs of ooststhe of ' t h e .; Zone, and other non - project costs (such as water supply improvements n; roads that are not intended to be f mdod throengh the operation of the Zone), are set forth in Exhrbit D. The animated amoimt of boarded 4 Exhibit A Page 10 of 39 indebtedness to be incurred to pay initial Project costs, and the timing of when related costs and mcnetary obligations for implementing this Plan are to be incurred, are set forth in Exhibit D. The City currently estimates that the total amount of Issuer debt necessary to be issued for completion of initial Project costs will not exceed 512,000,000. Secondary development improvements are to be financed as funding becomes available from surplus tax increments or bonds. The City currently estimates the total amount of Issuer debt that may be issued for secondary developments will not exceed 53,000,000. The Plan of Finance The City has created the Zone for the purpose of raising funds needed to provide the City's share of the Project costs, and the Series 2003 Bonds (hereinafter defined) are the first installment of Issuer bonds to be issued for that purpose. The City, the County, Del Mar College, a junior college district and political subdivision of the State of Texas (the "College") and Nueces County Hospital District, a hospital district and political subdivision of the State of Texas (the "Hospital District") each have agreed to deposit to the Tax Increment Fund established for the Zone (the "Tax Increment Fund") certain tax collections arising from their respective taxation ofthe inaease, if any, in the appraised value of real property located in the Zone since November 14, 2000 (hereinafter defined as the (Dedicated Tax Increments"), through the earlier of December 31, 2022, or the date on which any outstanding obligations payable from the Dedicated Tax Incranents are finally paid. The City has enteral into separate intalocal agreanents (the "Interlocal Agreements") with the County, the College,, and the Hospital District which sets forth, among other things, the agreement of the City and County, College, or Hospital District, as applicable, to pay to the Issuer the Dedicated Tax Increments (the "Contract Tax Incremental. The bonds to be issued to fund Project costs are to be payable solely from the Comma Tax Inarmarts and certain other funds on deposit with IPMorgan Chase Bank, Houston, Texas (the "Trustee") or which may be deposited with the Trustee in the future together with earnings and investments thereon (the "Pledged Revenues"). The City, the County, the College, and the Hospital District (each ref to iidividually herein as a "Participant" and collectively referred to as the "Participants") have agreed to deposit to the Tax Increment Fundthe Dedicated Fax Increments, as described havin. Pursuant to the TIF Act, a taxing imit's tax inaement for a year (a "Tax Incranent") is the mourn of property taxes levied by the unit for that year on the "captured" appraised value of real property taxable by the unit and located in a reinvestment zone. Tax Increments do not result from any increase in the appraised value of personal property (such as equipment or inventory) taxable by the unit and located in a reinvealment zone. The TIF Act dermas captured appraised value ("Captmed Appraised Value") as the total value of all real property taxable by the unit and located in a reinvestment zone less the tax inclement base ofthe unit The tax increment base of a taxing unit (the "Tax Increment Base") is the total appraised value elan real property taxable by the unit and located in a reinvestment zcoe for they= in which the zone was designatal. In the case ofthekoe, tile Tax Imamate Base is the total appraised vahie of all real property in the Zone taxable by the relevant Participants as of Jimuary 1, 2000. Tax Incranents result only from Captured Appraised Value in the Dam, which consists of 1,947.0 138 acres, approximately 542.8184 ofwhich is publicly owed and not taxable. Welt A shows (a) the Tax Increment Base ofthe Zone, (b) the aurent (as ofthe date ofthis Plan) total appraised value of taxable real property in the Zone and (c) the estimated captured appraised value oftheZcoe during each pm of its scheduled existence. Pursuant to separate bialocal Agreements between the City and each of the Canty, the College, and the Hospital District, respectively (the "Interlocal Agreements") the Participants have agreed to deposit all or a portion oftheir Tax Increments to the Tax Increment Fund. The City, the Cy, and the Hospital District have agreed to deposit to the Tax increment Fund 100% of their tax collectioes on Captured Appraised Value intim 5 Exhibit A Page 11 of 39 Zone for each tax year that the Zone remains in existence, commencing in tax year 2000. The College has agreed to deposit to the Tax Increment Fund 100% of the its Tax Increments for the first five years (2000 -2004) of the Interlocal Agreement, 80% for the sixth year (2005), 60% for the seventh year (2006), 40% for the eighth year (2007), 20% for the ninth year ( 2008), and none thereaiber. The amounts the Participants have agreed to deposit to the Tax Increment Fund are referred to herein as the "Dedicated Tax Increments." The obligations of the Participants to pay Dedicated Tax mats into the Tax Increment Fund are subject to the rights of any of the holders of bonds, notes or other obligations that have been or are hereafter issued by a Participant that =payable from and secured by a general levy of ad valorem taxes throughout the taxing jurisdiction of that Participant. North Padre bland Development Corporation The Issuer The Issuer is a not -for -profit local government corporation and was established by the City under the provisions of Chapter 431, Texas Transportation Code, and the general laws of the State of Texas to aid, assist, and act on behalf of the City in the performance of the City's governmental fimctions and to provide a means of financing certain Project costs in connection with the Zayre. 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 bowls is anticipated to be issued in the spring of 2003 (the "Sales 2003 Bonds "), in cemaection with the implementation of this Plan. Should bonds be issued to fund the costs of maintenance dredging, it is anticipated that fiords for such use would be included in the third series of bonds to be issued. The Series 2003 Bonds are the first issue of bonds (the "Tax Increment Contract Revenue Bonds ") to be issued by the Issuer. The Tax Increment Contract Revenue Bonds, including the Series 2003 Bonds, are secured by the Issuer's pledge of payments to be received pursuant to a Tri-Party Agreement among the City, the Zone, and the Issuer (the " Tri-Party Agreemtnt"). Under that agreement, the Contract Tax Increments will be paid into the Tax Inarem It Fund at the City's depository. The Bonds will find a portion of the City's share of the Project Costs. Completion of the Project will require additional funding, which currently is anticipated to be provided through the issuance of additional bonds by the Issuer secured from Dedicated Tax Increments on parity with the Bonds. Seccndary development improvoments may also be financed from additional bonds. For the Issuer to be able to repay such additional bonds, substantial growth in the taxable values within the Zone must oases, and there is no guarantee that such growth will have been accomplished to the timing of funding the ranaining phases of the development and oampletiaeof the Project. Growth in taxable vabxs within the Zone is dependent on Anise ckvclop ant of additional taxable improvements. While the City expects that such additional impcovanents will be constructed if the Packery Channel is completed, these are approximately 1,838 tracts of land within the Zone owned by approximately 1,034 diffi a ant owners, and neither the Issuer nor the City has any agreement with any for construction of impro vanents within the Zone, or knowledge that any landowners intend to =enact additional Without future development within the Zone, there can be no guaatee of additional Dedicated Incrernarts suit to pay debt service an issued to finance the Project. A projection of the Project costs to be funded with band proceeds and the sizing of the bond issues to find those Project costs is set forth in Exhibit D. The Tri-Party Agreement If 6 Exhibit A Page 12 of 39 The City, the Zone and the Issues will en to into the Tri Party Agreement. Pursuant to the Tri-Party Agreement, the Issuer will provide certain management and administrative services for the Zone. The Issuer is authorized to issue bonds or enter into other obligations to be repaid Contract Tax Incremaits but only with the approval of the City Council. The Issuer agrees to use all Contract Tax Increments in a manner consistent with the Plan. The Tri -Party Agreement provides for duties and responsibilities of the City with respect to Dedicated Tax Incrailents and provides for duties and responsibilities of the Zone with respect to Dedicated Tax %ts,. The Dedicated Tax Increments are to be deposited when received into the Tax Increment Fund. The City and the Zone will covenant and agree that they will continuously collect the Dedicated Tax Increments from the Participants in the manner and to the maximum extent permitted by applicable law. To the extent the City and Zone may legally do so, they also will covenant and agree that they will not permit a redaction in the Dedicated Tax Its paid by the Participants. The City will covenant and agree to annually levy, assess and Dolled its ad valorem taxes in the Zone. The City and the Zone will agree to pay to the Issuer the Contract Tax Increments in consideration for the Issuer finding certain of the Project costs with the proceeds of the Tax Increment Contract Revenue Bonds. The obligations of the City and the Zone to pay Contract Tax %ts shall be subject to the Tri-Party Agreement and the rights of any of the holders of bonds, notes or other obligations that have been or are hereafter issued by the City, the County, the College, or the Hospital District that are payable ham and seemed by a general levy of ad valorem taxes throughout the taxing jurisdiction of the City, County, College, or Hospital District. It is anticipated that the interests of the Issuer in the Tri-Party Agreement will be assigned to the Trustee for the Tax incxmment Contract Revenue Bonds under the terms of the Indenture pursuant to which such Tax Increment Contract Revenue Bonds are to be issued. The Tri -Party Agreeemcat may be amended with the mutual consent of the parties; however, any amaxlment must be accompanied by an opinion of counsel to the Issuer to the effect that such agent will not materially impair the rights of the owners of the Issuer's bonds or other outstanding obligations. 7 Exhibit A Page 13 of 39 Reinvestment Zone Number Two City of Corpus Christi, Texas xm rr A ForecastdPoten#W TIF Revenue Mars on North Padre bland (Final ) Dated August 2002 ERA Project Number. 14663 Exhibit A Page 14 of 39 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 Exhibit A Page 15 of 39 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 TIE Revenue Conclusions 11 TIF ANORAK far North hale bird — Rod ■.,.. a Exhibit A Page 16 of 39 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 in 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 TIF Analysis Par Noah Para Island — Exhibit A Page 17 of 39 GENERAL LIMITING CONDITIONS Every reasonable effort has been made to ensure that the data contained in this study reflect the most accurate and timely information possible, and they are believed to be reliable. This study is based on estimates, assumptions and other information developed by Economics Research Associates from its independent research effort, general knowledge of the industry, and consultations with the client and the client's representatives. No responsibility is assumed for inaccuracies in reporting by the client, the clients agent, and representatives or any other data source used in preparing or presenting this study. No warranty or representation is made by Economics Research Associates that any of the project values or results contained in this study will actually be achieved. Possession of this study does not carry with it the right of publication thereof or to use the name of "Economics Research Associates" in any manner. No abstracting, excerpting, or summarization of this study may be made. This study may not be used for purposes other than that for which it is prepared. Exceptions to these restrictions may be permitted after obtaining prior written consent from Economics Research Associates. This study is qualified in its entirety by, and should be considered in light of these limitations, conditions and considerations. Tff *nu is liar North Padre blind — flee! Mem Iv Exhibit A Page 18 of 39 INTRODUCTION Economics Research Associates (ERA) was engaged to provide the City of Corpus Christi with estimates of tax increment revenues in the proposed North Padre Island Tax Increment Finance (TIF) district. ERA understands that estimated future tax revenues from the district will be targeted to fund a portion of the development cost of funding the North Padre Island Damage Reduction and Environmental Restoration Project. This forecast makes use of data provided by the City of Corpus Christi and the Nueces County Appraisal District covering property tax rates, assessed values, and actual historic taxes paid for the defined TIF district. Data from these sources have been assessed to generate a reasonable estimate of potential tax increment revenue. This report is independent from an earlier report prepared by ERA in the year 2000. This report does not assume any major development in North Padre Island and uses a different methodology to forecast tax revenue in the TIF District. Some numbers are rounded and might differ from the original database. Although every possible effort has been made to present correct information, some errors might be present due to handling of large data sets in a short time period. However, ERA believes that the results are reasonable and concur with the data available. ERA would like to thank all staff members at the City of Corpus Christi and the Nueces County Appraisal District for providing us with data in timely fashion that ensured preparing a comprehensive report. TIF Aealr■is ilsr Nth Padre hiked — Thud arm" I Exhibit A Page 19 of 39 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 T1F district. The following table indicates that the district currently contains vacant land and improvements amounting to $85,870,603 in taxable value. The table breaks down values between home site and non -home site land and improvements, as well as exemptions and adjustments, to arrive at a total taxable value. Exemptions and adjustments are made for homestead, disabled individuals and veterans, and people over 65. Preliminary assessments for 2001 are $98,153,611 and for 2002 $107,588,794. Table 1. Taxable Value of Land & improvement, TIF District - 2000 Category V land—Home Site S5,491,354 Land — Non -Hoene Site 323,947,556 Improvements —Home Site S42,200,590 Improvements —Non-Home Site 317,684,297 Sub-Tatai 689,323,797 Exemptions &Adjustments $3,453,194 Tolal Taxable Vane SS5' 4 4 Names County Anneal Duct 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 vahie, but home site improvements account for 70% of total improvements. TIF Analysis for Haab Peeks blind — Fin■i Exhibit A Page 20 of 39 Participating Jurisdictions Four jurisdictions are contributing 100% into the tax increment fund for the whole period starting in 2001 through 2022. One jurisdiction, Del Mar Jr. College, is contributing 100% into the tax increment fund for the first 5 years, 80% for the sixth year, 60% for the seventh year, 40% for the eighth year, 20% for the ninth year and 0% thereafter. Three jurisdictions will not participate: Flour Bluff Independent School District (ISD), Port of Corpus Christi and Fire District #2. The following table shows tax rates schedule per $100 of taxable value. Table 2. Tax Rates for Participadng Jurisdictions Jurisdictions Providing ALL 20014005 2006 2007 2008 2009 2010-2022 Increment Jurisdictions City of Corpus Christi 0.644175 0.644175 0.644175 0.644175 0.644175 0.644175 0.644175 Farm to Market Rd. 0.005238 0.005238 0.005238 0.005238 0.005238 0.005238 0.005238 County Hospital 0.228028 0228028 0.228028 0228028 0.228028 0.228028 0.228028 Del Mar Jr. Collage 0.21988 0.21988 0.175904 0.131928 0.087952 0.043976 0 Nueoes County 0.350242 0.350242 0.350242 0.350242 0.350242 0.350242 0.350242 Port of Corpus Christi 0.002117 Flour Bluff 1SD 1.526197 Fire District #2 0.022200 TOTAL 2.998077 1.447563 1.40359 1.359611 1.31564 1.27166 1.227683 Assuming tax rates do not change fig: Nueces County Appraisal Diszict, City of Corpus Christi Regarding the above tax rates, local officials indicated that they did not expect to see unusual growth in the above tax rates in the near future. Following standard TIF modeling guidelines, ERA has taken the above tax rates and held them constant for the duration of the 20 -year TIF model With tax rates held constant, key drivers of the forecast become rates of appreciation for existing improvements and vacant land. Methodology In order to estimate a reasonable tax revenue flow, ERA made the following assumptions: • Base tax year is 2000 • 2002 tax rates for each participating jurisdiction are assumed fixed for the whole period (through 2022) • Tax increment fired starts in 2001 • End of TIF district is 2022 • Padcery Channel will be completed in 2004 • The TIF district tax revenue flow is completely .4 I P ( of any potential major development that could potentially have a great impact on other developments and land value. TIF Analysis for North Padre Mod -Elul Pam 3 Exhibit A Page 21 of 39 • First to Increase: Value of land and current developments with water frontage in the District excluding beach properties will be the first to increase in value due to the opening of Puckery 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. TIP &riO, for Noah Padre Mar 4 Exhibit A Page 22 of 39 TIF REVENUE ANALYSIS Summary Two scenarios were developed and are presented in this report. The first scenario applies an annual growth rate of 9% from 2003 through 2012, and 3% annual growth rate from 2013 through 2022 for all properties within the TIF District. The 9.1% annual growth rate represents the CAGR of the assessed values of all properties on Padre Island from 1992 through 2002. The second scenario applies different annual growth rates for each property type in the TIF district. Waterfront properties on Lake Padre, the canal and on the proposed Packery Channel are estimated to grow at an annual rate of 24% between 2003 and 2007. During the same period, Beach properties and non-waterfront properties are assumed to grow at 9.1 %. From 2008 through 2022, all properties are estimated to grow at the inflation rate of 3% per annum. The 24% annual growth rate represents the estimated CAGR of the total taxable value of TIF properties within the five participating jurisdictions from 1996 through 2001. The two scenarios are conservat 'e and do not assume any new development. From 2001 through 2022 and using 2000 as the base year, the first scenario generates a total tax revenue of $63.4 million of which $38.9 million is the TIF revenue. The second scenario generates a total tax revenue of $55.9 million of which $31.3 million is 111? revenue. A detailed analysis follows. Real Estate Market Discussion Economics Research Associates conducted a number of telephone interviews with accredited reahors 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 y- boomers and a healthy economy had lead to strong demand of refit and seasonal homes in Padre Island. This demand has exceeded the markets ability to supply more housing units. Another factor in the escalation of price and demand is speculation regarding the Packery Channel, which would connect Lake Padre and the Packery Channel to the Gulf of TIF Melva far Maati Padre Imbed — Rad Pees0, Exhibit A Page 23 of 39 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 310,000-315,000 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. TB' Waterfront Properties 2002 Using the micro level data (property tax records) obtained from the City of Corpus Christi and the Nueces County Appraisal District, ERA was able to compile waterfront properties in the TIF District by location and type. The TIF District has 1,930.08 acres with a total assessed value of 3107.59 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 360.6 million. The following tables show waterfront properties by location, land value, improvement value, total exemptions, taxable value, and acreage. Table 3. Waterfront Properties by Location and Value within the TIF District Type Acres Lad Vaiae Improvement Total Assessed Tumble Vase Vai■e Vase Coed= Beach 13.45 $2,450,499 328,962,543 531,413,042 329,048,886 Across from the Beach 3.61 $281,352 83,902,799 $4,184,151 53,531871 Other - Lake Padre, Canal 10.93 31,459,001 311,600,220 $13,059,221 311,503,641 Lame Padre 470.66 $4, 591,013 $938,742 85,529,755 55,517,325 Beach 53.20 82,577,105 84,355,083 *6,932,188 $6,932,188 Exempt 202.86 80 SO 80 SO Othv 222.24 $2,517,234 31,669,836 34,187,070 84,054,928 TOTAL WATERPROfERTlES 976.95 513,876,204 S51,429,223 565,305,427 560,590,839 Nueoes County Appraisal Distinct, Economics Rom e& Associates 'ii14F AnnInsb for North Peas lohnott — . • Pane 6 Exhibit A Page 24 of 39 Most of the condominium properties are older developments dating to mid 1980s especially the ones with a beach frontage. Most of the properties on Lake Padre are parcels of vacant land. The other non - classified properties are parcels located on the Canal and what would be on the Packery Channel. Land value, as expected, increase as it approaches the Beach. The most expensive land parcels are those of condominium with beach frontage with over $180,600 per acre. The second highest, on average, are condominium properties on Lake Padre with $133,500 per acre followed by condominium properties located across from the Beach. As expected developed land, although with indirect beach frontage has more value than undeveloped beach parcels. It is plausible to assume that the value of land parcels with beach frontage would more than quadruple in value after it is developed. The following Table shows average assessed value per acre by location. Table 4. Average Assessed Land Value by Location TyPe Acres Average Land Value (S/Acre) YillieBBLUBBEEfiti Condos Beach 13.45 $180,623 Across from the Beach 3.61 577,840 Other _ Lake Padre, 03na1 10.93 5133,448 Lake Padre 470.66 59,754 Beach 53.20 548,442 Exempt 202.86 50 Other 222.24 511,327 976.95 517,897 TOTAL WATEBPROPER'TIRS &,Told average nine excludes eaoemptpptpesties Sweet No a Camay App . Economics Rah Associates There are 16 condominium developments in the TIE' 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 Padua), 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 frontage Ty Pe Totil Condo Units Average Cando Assessed Value Condos Beach 324 Across from the Beach 115 Other - Lake Padre, Canal 399 bass s Naeaa qty Appraisal Dim, Economics Research Associates 396,305 536,384 $32,730 The following table shows condominium properties by location, acreage, number of units, and average condominium assessed value. Table 6. Condominium Properties in the TIP District Property Name Water Floatage Leaden Acreage Total Land Value Total Improvements Total Assessed Value Total Number Taxable of links Value Avg. Condo Valle El Constarde Beachliont 3.05 5531,178 55,317,124 Padre Island- Beachfroot 4.78 5885,669 513,272,754 Gtdfstrcam La Casa Del Sol Lake Padre 0.70 594,134 5889,071 Lakeshore Villas Lake Padre 1.26 5153,552 51,586,544 Leeward Wes Lake Padre 2.58 5168,810 52,761,688 Leeward Cove Lake Padre 0.61 575,632 5585,521 Lorimar Place Canal - 2 0.43 571,650 5303,335 blocks from beach Mystic Harbor Packery 0.94 5122,904 51,185,002 Channel Sark x e Across the 1.03 578,814 51,189,358 shed from Beach Nautili' Galleria Across the 1.03 567,502 51 ,219,289 shed Rom Beach Pirates Crossing A Lake Padre 0.53 5184,591 51,233,405 Seascape Vfila Portofino Beef 2.31 5483,538 55,372,008 Mariners Cay Canal -2 3.51 3539,544 52,497,196 blocks Sam beech Padre Island - Across the 1.55 5135,036 31,494,152 Snifide shed from Beach Palm h1e - Island Beach@mt 3.31 $528,142 54,812,272 Home Seed Debar Canal 0.37 $48,184 $558`458 $5,848,302 55,581,554 514,158,423 313 ,239,239 5983,205 $983,205 51,740,096 $1,459,835 52,930,498 52,897,168 5661,153 5646,153 3374,985 $374,985 51,307,906 51,175,954 51,268,172 51,017,892 $1791 51,051,791 51417,996 51,337,959 35,855,546 55,130,665 53,036,740 52,261,740 31,629,188 $1,464,188 $5,340,414 $5,097,429 5606,642 3366,642 Total 27.99 14,168,880 544,277,171 548,446,057 544,086,398 69 584,758 130 5108,911 24 540,967 24 $72,504 87 $33,684 16 $41,322 10 537,499 32 540,872 26 $48,776 45 528,595 36 539,389 53 5110,482 136 522,329 44 537,027 72 374,172 34 517,842 838 551,812 Nmaa Canny Apronal Distort; Economics Research Animates Eill 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 556,250 each or an average of 5110,294 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 Laud Total Total Toed Acreage Value Impravemcats Assessed Tasatbk Value vase 6180- $1, 636,741 $820,671 $2,457,412 $2,444,982 20.85 6185- 51,136,341 50 $1,136,341 $1,136,341 23.75 6175- 8225,114 $65,880 $290,994 $290,994 5.01 6125- 31,309,302 $52,191 51,361,493 81,361,493 286.05 6195 - $283,515 SO $283,515 5283,515 135 Total 84,591,013 8938,742 $5,529,755 85,517,325 470.66 Nueces County Appraisal Dizict, Economics Reeeetsh Associates Table 8. Other Non - Exempt Water Front Properties TAX ID Total Lad Total Total Value Improvements Assessed Value 3730- 6152,759 8111,409 5264,168 4793 - 8791,199 8276,447 81,067,646 6170 - 8584,752 30 5584,752 6205 - 5735,000 80 8735,000 1115- 8174,019 80 5174,019 1717 - 579,505 $1,281,980 51,361,485 Total Acreage Legal Description Taxable Value 8264,168 8.051sland Fairway Estates 51,067,646 6.75 Madam Cay Lets $584,752 7.58 PADRE ISLAND SEC B $735,000 60 PADRE ISLAND SEC 18 8174,019 138.86 BRYAN WM SUR 606 LS 64,129.964 ACS ICL 51,229,343 1.00 Compass Town - 13 units Total 82 ,517,234 81,669,836 $4,187,070 84,054,928 222.24 Source: Nueocs Canty Appraisal District, Boa nmmice Research Associates Table 9. Exempt Properties TAX ID Name Acreage 111500000010 STATE OF TEXAS 138.87 111500000050 STATE OF TEXAS 4.03 373000030050 FLOUR BLUFF IND SCHOOL D1 6.5 616500451400 CTrY OF CORPUS CHRISTI 3.46 619000000005 STATE OF TEXAS 0 625200000010 NUECES CO 20 625200000020 NUECES COUNTY TRUSTEE 30 Total 202.86 fieggs Nueors County Appraisal DieEzid, Economics Research Asssciates 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. Engrg/Ailing 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 u • . --1992 -2002 Year Padre bland Waterfront Lake Beach Other Non- (AM Properties) Condos Padre Waterfront Waterfront CAGR 1992-2002 9.10% 5.99% 0.77% -3.96% 2.03% 10.19% CAGR 1993 -2002 10.14% 7.27% 5.45% -2.30% 2.39% 11.0696 Ikegga Names County Appraisal District, Eoarromis Resew& Associates TIF Revenue Conclusions The following tables summarize the TIF District's estimated taxable value, grand total tax revenue and the incremental tax revenue from 2001 through 2022. Scenario 1 reflects an overall average annual 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 i. TIF District Taxable Value and Revenue, 2001 — 2022 2001 -2005 2006 -2010 2011-2015 2016 -2020 2021 -2022 Tastable Value Grand Total Tax Revenue Incremental T1F Revenue $590,873,474 $909,709,774 S1,300,406,021 $1,523,320,994 $675,226,929 $8,553,266 $11,899,730 $15,964,864 $16,701,553 58,289,646 $2,338,110 $6,251,011 $10,693,770 S13,430,459 $6,181,209 Accumulated TIP Revenue S2,338,110 S8,589,122 S19,282,891 $32,713,350 $38,894,559 Enitm City of Capes Claud, Nuecea County Appraised District, and Economics Research Associates Table 12. Scenario 2. TIF IDistritt Taxable Value and Revenue, 2001 -- 2022 2001- 2005 2006 -2010 2011-2015 2016- 2020 2021 -2022 Taxable Value Grand Total Tax Revenue Incremental Tiff Revenue Accumulated TIF Revenue $601,808,948 $912,635,163 51,072,871,721 $1,243,752,371 $551,305,402 $8,711,564 $11,971,610 $13,171,464 $15,269,336 $6,768,283 $2,496,408 $6, 322,891 $7,900,370 59,998,242 $4,659,845 52,496,408 58,819,299 516,719,669 526,717,912 531,377,757 City of Capes Christi, Names County Appraisal District, end Economics Ihressrch Asa:mates The following exhibit shows the growth in the TIF revenue from both scenarios. Exhibit 1. TIF Revenue Scheduler, Scenarios 1 and 2 2a132 21Ie1218121115 MN sit s NM Tae MU 2e12 MIS 2ei12e15 MI 217 sue 2e1J mom" sun The following table shows taxable values, grand tax revenue and incremental TEE' revenue from the two scenarios in thousands of dollars. Table 13. T1F Taxable Value and Tax Revenue Schedule, Scenarios 1 and 2 - 2001 -2022 ($000s) YEAR TAXABALE VAL JE GRAND TAX TIF REVENUE REVENUE Scenario 1 Scenario 2 Scenario 1 Scenario 2 Scenario 1 Scenario 2 2001 $98,514 *98,514 *1,426 *1,426 *183 *183 2002 5107,589 *107,589 51,557 *1,557 *314 *314 2003 *117,376 *118,803 $1,699 51,720 *456 *477 2004 *127,940 *131,379 51,852 $1,902 $609 *659 2005 $139,455 *145,524 *2,019 *2,107 *776 *864 2006 *152,006 5161,483 *2,134 *2,267 5928 51,061 2007 *165,686 5179,546 *2,2253 52,441 51,085 *1,274 2008 *180,598 *184,932 52,376 $2,433 *1,246 *1,303 2009 5196,852 *190,480 52,503 52,422 *1,411 *1,330 2010 *214,568 *196,194 *2,634 52,409 51,580 51,354 2011 $233,880 *202,080 52,871 *2,481 *1,817 51,427 2012 *254,929 *208,143 53,130 $2,555 $2,075 *1,501 2013 $262,577 5214,387 53,224 *2,632 52,169 *1,578 2014 $270,454 *220,819 53,320 52,711 $2,266 $1,657 2015 5278,567 $227,443 53,420 *2,792 $2,366 51,738 2016 *286,924 5234,266 *3,523 52,876 *2,468 51,822 2017 5295,532 $241,294 53,628 52,962 *2,574 51,908 2018 5304,398 *248,533 53,737 53,051 *2,683 51,997 2019 $ 313, 530 $255,989 53,849 *3,143 52,795 52,089 2020 5322, 936 5 263,669 53,965 $3,237 *2,910 52,183 2021 *332,624 5271,579 54,084 *3,334 *3,029 *2,280 2022 * 342, 603 5279,726 $4,206 53,434 $3,152 *2,380 TOTAL 563,189 555,892 $4,999,537 54,382,374 S38,195 531,378 Somme; City of Carpus Christi,14looses County Appraisal District, and Economics Research Associates Reinvestment Zone Number Two City of Corpus Christi, Tema EXHIBIT B Map: Feting Uses and Canadian In the Zone li Padre Island Tax Incremen Financing Dr Uuece;. 'ountg 111111111111 4f111111111t1.IIII■ ruom11[LItIlil1 Texas rap tart s� Scale in Feet Copyright 1989 -2001 City of Corpus Christi 1411 6MAROI City Of Corpus Chris*, Planning Department Reinvestment Zone Number Two City of Corpus Christi, Texas EXHIBIT C Map: Proposed Improvements and Proposed Uses of Beal Property is the Zone Padre Island Tax Increment Finance District Legend e_ - IHINP, Dimly wmWcnYd • *MAIM I Urals Hem Drape 1 Omni.. condor wd...rnr oe.. Ideftiel Awe ,OemnrcW 1 Harry troraiu Source: Department of Development Services Reinvestment Zone Number Two City of Corpus Christi, Texas EXHIBIT D limpet Cod. and Emanated Cash Flow. Reiman4naut4 Zone Number TWo City of Corpus MAK Tats Paelary Channel Praise Comb and Funding Pales! Costs Coaps of Total Zone Two Enshrines Land, eanemente. ROW $238,200 $82,670 $153,530 Demo66on 20,834 7,292 13,542 Utility ralocalfon 104,073 38,426 67,847 Site preparation 74,219 25.977 48,242 Reach 0 0 MobUtzM on & dernoblizadon 486,881 170,408 316,473 Dredging 602239 211,029 391,910 Reach 1 0 0 Mobtizedon & demobttimtlon 1,348,383 471,934 878,449 Dredging 2212,120 1.019,242 1,892,878 Overdeplh 4250736 148,833 278,403 483.774 189,321 314,453 Pleasant in placement arse 1,382,388 483,835 896,551 Comets bulkheads 2.369,894 829,463 1,540,431 Anchored coroners bulkheads 0 0 0 Containment eheelpisFcap 0 0 0 Sand bypass pipe 321,421 112,497 208,924 3ridpe =our protection 743.041 260,064 482,977 Jetty construction 9.738.800 3,408,580 8,330,220 Wallow curbing 0 0 0 Concrete wa:aray 1202,309 525208 976,501 Binning, engineering & design 2.737.660 958„188 1,779.492 Construction management 1,817,640 638,174 1,181466 Minimums dredging reeerve(a) 1,400,000 1,400,000 0 Inagenen orate 1,250,000 437,500 812,500 Malls Beattie monitoring 541,000 189,350 351,650 Paridn g lot(b) 750,000 750.000 0 Part & recreation oerder(b) 2,000,000 2,000,000 0 Financing, om8rgency reserves & rounding 1,410683 1419683 834,659,513 $15,745274 $18.914,240 Funding Sauces Cops d Engines 818.914,240 116,914,240 Series 2003 Bonds 2,509,000 $2,500000 Series 2004 Donds 4200.000 4.300.000 Series 2405 Bads 4230`000 031000 May and Land Green 340273 340,273 General Lard Ottlos Cearrt 1.275,000 1275200 Supba Tax increments or Borde(b) 3.000.000 3,000000 $34,859.513 115.745273 115.914.240 (a) NsMnle art s dredging g swerve either b be !maned tom the moods d Series 2006 Runde or as tads became sollabie item =plus tax ierncnrwnla. or s aonrbbrdlan IhenacE (b) Pastes 1 nomatbn center and paaldng Mb be 1Manced astiding becomes arraiabls from surplus bet Increments m bates, or • combings hoed 1"1 ROI gg ggOggggglkif ,q 8$ lima EAV §ANI §§ W MAIREMBRMAIP 10600000REEIRIMNRN IFIR000gE § § § § § § § §I_, 11§ § §1§ §01101 §11 §§ aggfignigfignigIgOg . -faLl fa oggsagatffmtg mggMliggOANFAR 11111111101511111M1 r Hers ai rr rs rl elrfelrf4 ff ilik 1"1" OOO1 1PkA fg lBIC l:p$ 00 g igiss $R - ^ �� r r r r ; O O O O O O O O O O 0.0.....4 R FIN A ii.00eoi'j immsimx brie $ 0 I. i rrrNhNw c4 gang le oo0ooeo0oo *;111111111$ ulpf88am itt1e -rt r r r r O Exhibit A Recap IBIlvd Padre Baih County IPa @*c ou e: De of D^ °w;�r.;alnPi Exhibit B Page 1 of 2 CITY OF CORPUS CHRISTI, TEXAS TIRZ #2 Printing Date, 8/28/2009 File' H:1PLN- DIR\SHAREDtGIS Pixiiects1LegaRTIFtZ2Vira.mxd Prepared By MikeN 0 City of Corpus Christi, Texas 0 1,500 3,000 6,000 Feet Exhibit B Page 2 of 2 CITY OF CORPUS CHRISTI, TEXAS TIRZ #2 Current Land Use Legend !WV 4 i:» Corridor Current Land Use vwrar W. Natural Ann j Her Dandy R*siden641 di t tand _w..:$Ikb' a Hama Park 77: !raw Denial Wad.=Danny Rasidmrtlal Prolottirootl 0111o* ' I `l aubilos°"® PubLz PM' ,/ Lipid E dushi l Maw kridlaulal Printing Date; 8/26/2009 File, H IPLN•DIRISHAREDIGIS Projects\LegaP \TIRZ21clu mxd Prepared By: MikeN 0 City of Corpus Christi, Texas 0 1,450 2,900 5,800 Feet Exhibit C Page 1 of 1 CITY OF CORPUS CHRISTI, TEXAS TIRZ #2 Zoning FOB B 10 ATIIO t�60 "7RI ;4(' B 2/1 R- 1BIPUID -41108 B- IlO �0 ✓ / Printing Date 9!2612009 File: H IPLN- DIRISHARED "+GIS Projectstegau4TIRZ2lzoning mxd Prepared By, MikeN 0 City of Corpus Christi„ Texas 0 1,350 2,700 5,400 Feet Exhibit D Page 1 of 1 CITY OF CORPUS CHRISTI, TEXAS TIRZ #2 Future Land Use } Printing Date. 8/28/2009 Flle: H IPLN- DIRISHAREDIGIS Projects LegaIITIRZ2Iflu mxd Prepared By MikeN 0 City of Corpus Chrisd, Texas A1 Drainage Corridor • Commercial Park r RessereNBusiness Park Estate Resi tial Tourism »rye Low Density Residentia, Publio-Semi Pubic 74% Medium Density Residential E4' Light Industrial High Density Residential MS Heavy Industrial 1: "'MosiieHome 0 1,375 2,750 5,500 Feet Exhibit E Page 1 of 1 NOT TO 'SCALE 0HIBI T .F f 6 PHASE 1 - SEAWALL PARKING LOT RESTROOMS PHASE 2 - PACKERY CHANNEL PARKING & OVERLOOKS (NORTH & SOUTH SIDES) PHASE 3 - PACKER? CHANNEL RESTROOMS. (NORTH & SOUTH S ES) IMW PHASE 4 - ADA RAMPS TO JETTIES (NORTH & SOUTH 3IDFS) EN PHASE 5 - PACKERY CHANNEL PAVILION PHASE 6 - ADMINIDTRAT ION & ANA DIALLING NG (NORTUSIID) PHASE 7 . ADA PARKING LOS' IMPROVEMENTS AT JETTIE RAMPS PACKERY CHANNEL SIX PACK PROJECT LOCATION MAP CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 9 of 1 DATE: 10/08, Exhibit F Page 1 of 1 .i'li'0.0210#4,4444404:100eittirt'414,'"i „ 111'1,( r 1. 1 Exhibit G Page 1 of 6 1 • luAloulolor '11,1',";11111111,1,11, / / cut" oF„ maoto Exhibit G Page 2 of 6 ANN. "k$ 7 / < 0 11' ., ,, ar ,, , /1 i 1 1 / 1 aki ak, 1 :010/ 4, wwwl ,1 "111,115'1 1IP' % Vw 1,9 „ 1 J,,, ccoci . 0 . c k ..„ / ..., 1, / 1,1 // / / 1 / 1 1 LA ,a1 7 "11'"ten IL t,1 911 *%11.17'1,9..) apo' at 111 ,101. .01 WAY NO ka, 1 OOP' DANE PROTECTION IJNE Exhibit G Page 3 of 6 ,nn, 11' nn, ,nn¢12' nnn, 13 2 555' r ?L.!? 0 s Ljj 0,1v, v•7 4 lel, 7 .11111115%#4,05-7-725-25 .7420 $ 12,1 4 ith,1411,1111,1,011414hr sr, WS / ..4.4 IL 2 , ,'" C. w ,E.X7,52540 OVERLOOK „int, Q7. frin 13 1 5 '3 • 15,7' 5,,,1A. 55 NrIv,v 1.751v I„‘ (vp 0 4-, CC1) 5,1 non; 144 5.2 5,5 153 env nnn 5,2 GLO LEASE TRACT 3 Exhibit G Page 4 of 6 1 eiritkoy,vr 1,4 4 / / / / / /sm,. F 96 4, 00 / / Exhibit G Page 5 of 6 1' V JtJ V CN L CO - MINOR BULKHEAD 0 00 + Exhibit G Page 6 of 6 PACKERY CHANNEL IMPROVEMENTS Remaining "Six Pack" Cost Estimates PROJECT PHASE: Phase 1: Restroom Facilities at South Parking Lot Project Complete Phase 2: Parking and Overlooks Project Complete Phase 3: Restroom Facilities at Packery Channel Current Budget FY 15 Budget Request FY 16 Budget Request 200,000 Design 815,000 Construction 1,051,000 Construction 2,066,000 Total Project Budget Phase 4: Ramps to Jetties Current Budget 274,000 Construction Design completed under Phase 2 Phase 5: Pavilion Current Budget FY '15 Budget Request FY '16 Budget Request 75,000 Prelminary Design 200,000 Design 1,006,200 Construction 1,281,200 Total Project Budget Phase 6: Administration and Maintenance Building FY '18 Budget Request 715,000 Design /Construction Phase 7: Parking Lot Improvements at Jetty Ramps FY '18 Budget Request 879,000 Design /Construction Exhibit H Page 1 of 1 111)%41. PACKER CHANNEL PROJECT 0 3400 GENERAL AREA OF SAND REMOVAL APPRW TWO CY. GENERAL AREA OF SAND PLACEMENT SITE PLAN NOT TO SC4LE SEAWALL SAND MOVEMENT & CITY COUNCIL EXHIBIT RELOCATION PROJECT � 0 EXHIBIT' 1147 03/22/2011 a 8 C C m � 4 q � LL a` m C 1.1 311 LL e c a 0 e LL q � F � F al � (00 N n 0 0 0 V V1.-0/000 V O 0 0 0 V 100(09U 400(n0.- 0 N 00(0 006900069 69 O O 0 407 407 u0'7 0000 000(0 00001 non,' 00040 O O O V *400 N 0 69 o 0 0 0 0 0 o O O 0 O 00000000000 o _O 00000000 O 0 0 0 0 0 0 0 0 0 0 0 o O o 0 0 0 0 0 0 O 'O 0 0 0 0 0 0 0 0 0 0 0 M C) C) (0(0 r r ..- 06906900m')000 a z z rc rc z z z z rc c U V U U U V U U U Q U U 0 0 0 0 0 0 0 v '(00) O NNNONn/0000) NI-01.-0V1.-00000 .- V V V V 0 0 0 0 (0 (0(0 0 00 00 0 00 r00l■00 40 rrO 0 (0000 (0000 V 0090 0 W .- .- o)4i(00d(0V R 0000069000000 V O) 0 N O O 0 N 0 0 0 V 0000 N V NN0000 0 /+) 0 0)0.0900 - 0 V_ MN NOR N 000)00 N N 0 0.. O N V 4) 69000000006900 00090 0) P) 0900 N N O 0 r 09 4') 009' 0 0069690069696904369 N V 090.0040(0(0004) W _ OP)04) 00000 V O 100 V NI:N 0700 �00a0 O) Nh(0V 4)0. V 00 000690069006900 V V 0 0 0 0 0 0 0 0. 4) N 0 V 10 0) V N N N N 010 r 00000.-00 N n (0 N ON 9'(V 000000000000 ('40 N004') 4) 4) O 1+) 0.0 O t+) V (0 0) 0) 0) G O O N V 000400(0)04) 4) 0.0 n 040 (0040 00. (7 000 4')(000 O 0 00 N V OOC)0 0 (70. M 0 .-.-NN 10MN NN 0696906969 69 69069 690 0 0909 0NO4) 0.0 V N On040090. 0000 V V 4) 0 O 0 V 04 0 0 V O O 0 N0�/+O0i NM 00 O(0•v ON (0rO 0 O 0 N O O N 0 7 0 4) V 0 0 00 0 4 " 4)0000 0 -('44') 00 �0 N O V (7 N N (7 N N N 000000000000 (0000 0 r 0 0 0 0 0 N 0 0000) 0 0 04 V O V O n 0'0 00 0 4) 4) 1:000') 00)0 t0On 000 NO N�a(pM (00 0004090 0 00) 0 V 000 aOOO,-V �N9' 7 0 0004 0 6969696969696969690696969 V09ONNNON0.00 �.-0 r0� r 0000 04(0 0 V V V V 0 010 0 00) OOr 0000 0 n 0 O 04 0- 0 4) 0 000 V O (700 � �074)m mma 69069969696900690 0 0 0 0 0 0 0 0 0 0 04 0') 0000000000000 0404040404(004040404040404 000) V 00000004 0000000000 0000000000000 04(004040404(0(0(0(0(004(0 N .0 0 Q 69 O r 0 CO CO CO CO N V N 69 0 N (00 N ((00(04 a(0 NN 0904007 N MON 0000-00 (0 (00004) �09N n 9'N N 0 69 0 69 69 0 69 69 00000000 00000000 00000000 O 0 0 0 0 0 0 0 00000000 0000100010 00000000 00000000 000.0000 00000000 00000000 0 0 0 0 0 0 0 0 00000000 V V V V V V V V r 69 69 69 69 0 69 69 00 0 0 0 o O o 00000000 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4) 0 4) 0 0 4) 4) 4) 00000000 (00 V r 0 V O 0 0000,001...N 0 N W 0 N 0 O N 0 .-Nv-* 00000910+) mmr0i0 ,600 N N 69696969 69 696949 0('4 O 07 N O) V 0 0 0 0 n O r O V OOrMO. -(N (00 400000. 0)00 V 0) O M 0 1000 (').004'- 4)00. 690069 430043 00000000 0100 04)0)(4 04 0w0m07 v) (h NNM(7000 696906969696969 00000000 100 00 0 001 NANO n N 0 N O 0 0 0 I00000O 00 O Nn 0400 (00) N 0 0 0 O N 0 007? V 4)00 of 69'10069690000 0 V N O I 0nOnV 03 O 0. 04 0 c90 V N r 0 V 7 N V O O 0 O 0 o N N 0m0.4-04000 0 • V 0 •. • 0 o) 1 ■0 0 0 M N 0 V O N 0 0 0 O 0 (00) V V 0 0 0 O 01069069069690 O tn 4 NMINNNNMIN 001-1-000V M N 040 4) - (0 00 00 0 (0 W V 0 0 N 0 0.9 rv_mn0 0 (do0 V nn 0 . 0 n 0 n 0 0 (7 V V 0 (0 0 00 O 0690069696969 00 0)(090 (0(4+)04009T 0,60-(60,51,:e 0 0 0 .V- N .m- 0 00 00.1 a 4) t0 0i r 0i 00 (0 0 6906969069069(0 V 0 0 n 00 0. 0- N 0000000 0 0 IAN N N N N N N N N 0V 000. 0001- NN N 000000000 N N N N N 1.0) N 69 v_ 0 N 0 4) co (0 69 0 0) O n 69 0) 0 0 N a O N a W W O 0) 0) C E 0) C • r O E N X H C 0 L ` X N F N o V O d a) U N 0 z O • O 2=0 E W ao) oz- N as p4 0 E >. a O 0m • O 2 W 0)4 m LL m a F N O+ ..gym E Ei 2 2 0 a mm- 11 00; C c OOm 00000 000.0 0.0000 000)0 WO.-0 ( N 696919069 0 0 V 0 0 000100 00 (0 o M 69 0 0 0 0 C co co 0000 0000 0000 10 0 4) (d 69 0 69 69 0 0 69 W O OW. N 69 0 69 0 0 69 This CIP Program includes Monitoring Contract. Transfer to Dredging Reserve 69 Transfer to Maintenance Reserve 00000 00000 004000 4100.00 -0 ON(O7 000690 0000 0 O N O ({000 0 u0 V N 0069 69 Div