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Home My WebLink About032835 ORD - 08/30/2022Ordinance approving an amendment to the Downtown Tax Increment Reinvestment Zone #3 Project & Financing Plans approved by the Board of Directors of Reinvestment Zone Number Three, City of Corpus Christi, Texas on June 28, 2022 to broaden the New Commercial Tenant Finish Out Program and to change the program name to Commercial Finish -Out Program. WHEREAS, in 2008, through Ordinance 027996, the City of Corpus Christi created a tax increment financing district, to be known as "Reinvestment Zone Number Three, Corpus Christi, Texas," over a portion of the city that includes the City's downtown area; WHEREAS, Ordinance 027996 included a preliminary reinvestment zone financing plan; WHEREAS, on August 25, 2015, the City Council passed Ordinance 030592, which approved the "Tax Increment Reinvestment Zone #3 Amended Project & Financing Plan"; WHEREAS, the "Tax Increment Reinvestment Zone #3 Amended Project & Financing Plan" was last amended by City Council on March 30, 2021; WHEREAS, on June 28, 2022, the Board of Directors of Reinvestment Zone Number Three passed a motion recommending an amendment to the "Tax Increment Reinvestment Zone #3 Amended Project & Financing Plan" that expands the Commercial Finish -Out Program to include owner occupied commercial space; WHEREAS, Texas Tax Code Section 311.011(d) provides that the governing body of the municipality that designated the zone must approve a project plan for a reinvestment zone by ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL FOR THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council approves the Project Plan and Reinvestment Zone Financing Plan for Tax Increment Reinvestment Zone #3, Corpus Christi, Texas for the Reinvestment Zone Number Three, City of Corpus Christi, Texas, as approved by the Board of Directors of Reinvestment Zone Number Three on June 28, 2022. A copy of the Plan is attached hereto and incorporated by reference. That the foregoing ordinance was read for the first time and passed to its second reading on this the ).pia` day of r , 2022, by the following vote: Paulette Guajardo John Martinez ,FFLR Roland Barrera V— Ben Molina I'tLf Gil Hernandez Mike Pusley Michael Hunter ,Q Greg Smith Billy Lerma 032 835 SCANNED That the foregoing ordinance was read for the second time and passed finally on this the day of F S 2022, by the following vote: Paulette Guajardo Roland Barrera Gil Hernandez Michael Hunter Billy Lerma PASSED AND APPROVED on this the 30\day of ATTEST: Rebecca Huerta City Secretary John Martinez Ben Molina Mike Pusley Greg Smith , 2022. aulette Guajardo Mayor 032835 City of Corpus Christi / Corpus Christi Downtown Management District Tax Increment Reinvestment Zone #3 Amended Project &Financing Plan Introduction Tax Increment Financing is an economic development tool authorized by Chapter 311 of the Texas Tax Code, through which governments can designate a portion of tax increment to finance improvements to promote development of a defined area, called a "Reinvestment Zone." The defined area must meet one of the five criteria outlined in Chapter 311. In 2008, through Ordinance 027996, the City of Corpus Christi created Tax Increment Reinvestment Zone #3 ("TIRZ #3" or "the Zone"), over a portion of the city that includes the city's Downtown area. There have been three amendments to the ordinance; expansion of boundaries (April 2009), correction of termination date (March 2012) and correction of board composition (August 2014). A change in the economic climate immediately after the creation of TIRZ #3 hindered the performance of the fund and prevented any investment from occurring. Throughout this time, there has not been an update to the Preliminary Project & Financing Plan in the 2008 Ordinance. This document, the 2015 Amended Project & Financing Plan, is intended to replace the previous Project & Financing Plan and any future amendments will modify this version. This 2015 Amended Project & Financing Plan is based on research conducted for the Downtown Area Development Plan (DADP), completed. Upon completion of the DADP, there will be an amendment to refine aspects of the 2015 Amended Project & Financing Plan. TIRZ #3 consists of a Board of Directors and is supported by the City Manager's designee, currently the City's Business Liaison, and the Executive Director of the Corpus Christi Downtown Management District (DMD). Second Amendment (FY 2017) — To continue and enhance the Zone's efforts, this Amendment provides for programming and services from the DMD; refines some of the Incentive Programs; and provides the ability for TIRZ funds to be expended for public, cultural and/or historic properties within the Zone. Updates also include the commitment from Del Mar College's extended participation to the end of the Zone. Note: Schedule of Project Expenditures (Page 7) updated as Exhibit C — FY 2017 Project Plan Budget. Third Amendment (FY 2018) — this Amendment renames the (5) Site Assembly & Development category to (5) Site Management & Development and discusses a pilot vacant building program in the Reinvestment Zone. Additionally, both (6) Parking Management and (7) Traffic Pattern and Streetscapes expand to authorize funding for implementation. (8) Other Programs and Initiatives expands to include Cultural District Plan, upon Board's approval of the DMD's FY 2018 Scope of Services. Note: Schedule of Project Expenditures updated as Exhibit C — FY 2018 Project Plan Budget. Fourth Amendment (FY 2019) — this Amendment extends the four Incentive Programs for an additional 3-year period and includes the new FY 2019 Budget as Exhibit C. It also provides an updated Sources of Revenue table showing the projected revenue of the TIRZ over time. City of Corpus Christi / Corpus Christi Downtown Management District Fifth Amendment (FY 2021) — this Amendment incorporates implementation that occurred in FY 2020 and refines parameters for more aggressive incentives for FY 21 based upon the remaining rehabilitation hurdles and economics. Sixth Amendment (FY 2021) — this Amendment modifies two incentive programs to expand their impact — New Commercial Tenant Finish Out and Chaparral Street Property Improvement Grant. Seventh Amendment (FY 2021) — this Amendment modifies the Streetscape and Safety Improvement Program to extend eligibility to patio cafes as an exterior improvement. Eighth Amendment (FY 2022) —this Amendment modifies the New Commercial Tenant Finish Out Program remove the "New" and "Tenant" from the qualifying requirements to become "Commercial Finish - Out Program" to expand the qualification of the program. This will allow established businesses to qualify for the program. Criteria for Zone Creation The 2008 Project Plan stated that the defined area of TIRZ #3 qualified for designation as a "Reinvestment Zone" because it suffered from "economic stagnation, inadequate infrastructure, and deteriorating properties. Without intervention by the public sector, private market forces will not be sufficient to generate significant development and redevelopment." Conditions listed that met the Criteria of Chapter 311, Section 005 included: • A substantial number of substandard, slum, deteriorated, or deteriorating structures; • The predominance of defective or inadequate sidewalk or street layout; • Unsanitary or unsafe conditions; • The deterioration of site or other improvements; and • Conditions that endanger life or property by fire or other cause. According to Chapter 311, these conditions must "substantially arrest or impair the sound growth of the municipality or county creating the zone, retard the provision of housing accommodations, or constitute an economic or social liability and be a menace to the public health, safety, morals, or welfare in its present condition and use." Conditions in 2008 met these requirements, as indicated by the Market and Economic Study undertaken at that time. While our community has benefitted from a boost in economic activity since 2008, the Downtown did not see the same level of development. This solidifies the 2008 position that conditions would not be overcome or corrected without significant intervention and assistance from the public sector. A Consistent Vision for Downtown For decades, efforts had been made to improve and revitalize Downtown Corpus Christi, with various levels of success. The 2006 Downtown Redevelopment Vision resulted in the creation of TIRZ #3, but a change in environment prevented immediate implementation. Other efforts have included: 2004 — Bayfront Master Plan 2006 — Downtown Redevelopment Report 2013 — Central Business Development Plan 2014 — RUDAT City of Corpus Christi / Corpus Christi Downtown Management District 2015 — Downtown Area Development Plan The 2006 Redevelopment Report vision statement is consistent with the vision illustrated in the 2015 Downtown Area Development Plan, which is currently in draft form. "Downtown Corpus Christi is a safe, clean, pedestrian friendly community comprised of a central business district, arts and culture, sports and entertainment areas. This unique vibrant waterfront community will provide local residents, tourists and families' opportunities to enjoy fine restaurants, shops and residential facilities." Anticipated Zone Role in Downtown Improvements The 2008 Market and Economic Study indicated the nature of the intervention and assistance needed to spur economic growth in different areas of the Zone. It stated that the "current structure of Corpus Christi's economy, the aging of existing development, and inadequate public infrastructure and facilities together depress the viability of new development and redevelopment in Downtown." The 2014 Analysis of Residential Market Potential repeated those themes, with extra emphasis on residential development and introduction of the concept of gap financing. Additionally, the 2015 environment has the new dynamic of regional investment valued at tens of billions of dollars. The primary functions of TIRZ #3 will be • To Support Private Sector Development & Investment • To Plan & Construct Public Improvements • To Provide Revitalization Focused Programs & Services The Zone is expected to be one of a variety of planned funding sources and programs that will be acting in concert to accomplish a changed public environment in Downtown. By improving and enhancing streets, sidewalks, and public spaces, plus upgrading utilities, the zone and the other programs will encourage the development of new land uses and the redevelopment or rehabilitation of existing uses. The intended result is that Downtown will become a vibrant and economically vital urban waterfront district with a variety of residential, retail, and lodging uses, a strong office base, and popular public facilities. 3IPage City of Corpus Christi / Corpus Christi Downtown Management District Project Plan Existing Uses and Conditions/Boundaries §311.01 (b) (1) The Zone includes approximately 856 acres wholly within the City of Corpus Christi. Its boundaries encompass nearly all of the Downtown area. A very wide variety of land uses are present within the TIRZ. The boundaries and land uses within the Zone are shown in Exhibit A. The existing conditions within the Zone are described generally below. A legal description of the Zone with a specific accounting for the proposed boundaries is given in Exhibit B. In the 2015 DADP, the identities of neighborhoods in the Downtown were emphasized as way to build unifying identities and create distinct experiences. Each of those regions is described generally below. SEA District - A large area of publicly owned cultural and entertainment facilities comprises the north end of the zone. These facilities include: • Port of Corpus Christi's Ortiz Center • Harbor • Corpus Christi Museum of Science & History Playhouse • Art Museum of South Texas • Brewster • Whataburger Field Street • American Bank Convention Center & Arena Icehouse • Heritage Park — Restored Historic Homes, now used as Non -Profit Offices or Cultural Museums. Moving south, the next few blocks vary between vacant, undeveloped land and low density residential, bordered to the west by Port facilities and storage space, southeast by the Port of Corpus Christi Offices and the Federal Courthouse. The southern portion of the SEA District also includes two restaurants, a vacant hotel, U-Haul, Fire Station #1 and the historic Nueces County Courthouse. IH 37 is the physical southern border of this area, with the transition from a highway to on and off ramps coming to surface grade. Uptown — South of IH 37, a natural bluff distinguishes the high-rise, office building core of the Uptown. Broadway marks a topo-graphical change as the edge of a bluff, and the higher elevation area to the west of the street north of Lipan Street is characterized mainly by professional office uses, some in high-rise towers. TIRZ #3 picks up two blocks of Uptown, with Tancahua as the west border. Of Downtown's office properties, only the Frost Bank building is one of two Class "A" properties. Overall occupancy for the Downtown office market is around 80 percent. Outside of the Zone, Uptown continues to include major government anchors, including Corpus Christi Independent School District Offices, Nueces County Courthouse, a Regional Transportation Authority Service Center and Corpus Christi City Hall. Marina Arts District (Downtown Management District) — The area east of Broadway is lower in elevation and features a walkable pedestrian grid with a mix of land uses, including hotels, office, residential and retail. The boundary of this neighborhood is based on the petition of property owners that created the Downtown Management District in 1993. This area is the historic center of Corpus Christi, but many of the original buildings have been demolished, due to neglect or natural disasters. The last large wave of construction occurred in the 1980's. The most recent large scale private investment is currently under construction, a $27 million residential property with ground floor retail, the Cosmopolitan. The area is interspersed with surface parking lots and vacant, blighted property. In several places, public spaces and sidewalks are in deteriorated condition. 4 City of Corpus Christi / Corpus Christi Downtown Management District Another unique feature of this neighborhood is the Corpus Christi Municipal Marina, spanning three man- made T-heads along the Bayfront. The Marina is comprised of over 600 slips, several restaurants and the Corpus Christi Yacht Club, the third oldest yacht club in the Gulf Coast. Bayshore Park Neighborhood — At Kinney Street, the Zone gets divided by a redundancy of roadways and a few vacant parcels. This portion of the Zone includes the YMCA, a Greek Orthodox Church, Episcopal Church, Methodist Church and several parks. Additionally, there is a mix of early 20th century single family homes and multi -family residential developments. The multi -family developments are truly a diverse mix, including high rise and mid -rise, market rate and affordable, ownership and rental, constructed at all different times with various architectural styles. Many of the original homes, especially at the south end of the neighborhood, have been converted to professional office use. This neighborhood would lend itself to the revitalization seen in older neighborhoods across the country, however an absence of neighborhood support services prevents the unification necessary to create this self identity. A potentially defining feature of this neighborhood is the 34 acres of park land for which the City is currently undergoing a Design -Build process to complete a Bond 2008 project that relocated traffic lanes to unite a patchwork of public space. The southeastern corner of the zone includes the Emerald Beach hotel and Marina del Sol condominiums. This neighborhood abuts the Christus Spohn Shoreline hospital complex. Christus Spohn Shoreline is just outside TIRZ #3 Boundaries, but the system is planning a $325 million investment in the community in the coming years. Municipal Ordinances §311.011 (b) (2) The City may modify existing ordinances in order to make the area in and around TIRZ #3 more friendly to the types of residential and recreational activity desired. Some other policies that will be updated include building design, setbacks and streetscape requirements, in order to establish a built environment that supports the downtown character. City Planned Improvements (Non Project Costs) §311.011 (b) (3) The City of Corpus Christi has over $ million in improvement projects currently funded and in some stage of planning or construction, independent from this TIRZ #3 Project Plan. The City will continue to use Bonds packages a major source of public improvement funding. Project Source Timeframe Cost Status as of 09/2020 Shoreline Realignment Bond 2008 Ongoing $13,000,000 Done SEA District Improvements Bond 2012 2015-2016 $500,000 Under Construction Chaparral St. Phase II Bond 2014 2015-2016 $9,000,000 Done Water Street Improvements Bond 2014 2015-2016 $5,000,000 Done Streetscape Improvements Bond 2014 2015-2015 $1,500,000 Done Wayfinding Program HOT Funds 2015 $200,000 On Hold Shoreline Crosswalks Bond 2018 2021 Pending Design Downtown Lighting Bond 2018 2021 Pending Design Total $29,200,000 City of Corpus Christi / Corpus Christi Downtown Management District Relocation §311.011 (b) (4) No relocation of existing residents is anticipated to be required as part of the Project Plan. Financing Plan Estimated Project Cost Description (§311.011 (c) (1) & Kind, Number and Location of TIRZ Improvements §311.001 (c) (2) TIRZ #3 is anticipated to participate in projects that support the development and economic activity projected in the DADP, especially when cost of development creates a gap due to utility or infrastructure conditions. The initial focus is on residential and mixed -use development. Exceptions may be made to the guidelines below for catalytic projects with Board approval. Such changes will be incorporated at the next Project Plan Amendment. 1. Targeted Vacant Property Improvement Grant Program — This three-year matching grant program will support and encourage private investment in the built environment along Chaparral Street and Mesquite Street for active businesses. Due to its "Main Street" characteristics and its function of connecting the Marina Arts District (Downtown Management District Boundary) and SEA District, Chaparral Street is a first phase priority for successful revitalization of the Zone. During FY 2016-2021, TIRZ #3 will make $200,000 available per year to match approved property improvements funded by the property owners. The Zone will consider from a 50/50, on renovation costs, depending on how the scope of the project meets the priorities of the Zone. A 20% incentive cap had been adopted for FY 16 — FY 20 but this will be waived for FY 21. A max of $100,000 is available for a single project in a single fiscal year. Applications will be accepted until the allocation is exhausted for each fiscal year. In FY 2021, the program will be extended to Mesquite Street in the Marina Arts District to facilitate development of targeted vacant buildings. 2. Commercial Finish -Out Grant Program— In order to support the demand for more dining, retail and entertainment venues in the Downtown, the Zone will reimburse approved new tenants and owner - occupied finish -outs at a maximum rate of $10 per square foot. For an owner -occupied business to qualify for the incentive, they must be established for at least 10-years. Evidence of operation must be provided upon application submission. It has become clear that existing inventory is not white box ready. 50% of Mechanical, Electrical or Plumbing Costs (Up to $20,000) will be available to the landlord with a new tenant if that landlord provides a 6-month rent waived lease. First -floor, active street use projects will be a priority consideration. $100,000 will be allocated annually. Qualified finish -out expenses include: floor and wall upgrades, HVAC, kitchen equipment, awnings and other permanent, semi -permanent fixtures. Grant is reimbursable to the Tenant, but written approval must come from Landlord in application. Applications will be accepted until the allocation is exhausted for each fiscal year. This program will also be available for expedited $10,000 micro -grants to be approved by the City Manager, or his designee, and administered by DMD and City Staff. Approved agreements will be reported to TIRZ #3 Board at the next Regular Meeting following award. 6l, City of Corpus Christi / Corpus Christi Downtown Management District 3. Downtown Living Initiative — The Residential Demand Study conducted for the DADP stated that over the next 5 years, 1,850 new units could be absorbed in the greater downtown if the threshold made investment attractive. Apartment occupancy was 94.2% in the first Quarter of 2015 (industry considers 96% to be full occupancy). In order to stimulate development, for FY 2016-2021, the Zone will provide a $10,000 per unit reimbursement grant for multi -family developments of over 3 units that meet the required design criteria. Applications will be accepted until the allocation is exhausted for each fiscal year, and allocations may be split between years and committed in advance. 4. Project Specific Development Agreement — In situations where higher development costs create a financing gap, TIRZ #3 can provide assistance to property owners or developers through a Development Agreement for reimbursement of net new tax increment. A pro -forma is required to qualify for up to 75% reimbursement of the new taxes for 10 years if a development is 5,000 sq. ft or creating 25 or more new residential units. If further gap exists, staff will undertake additional third party review to justify any additional reimbursement, based on the "but, for" principle. The qualifying cost elements for this Program include: • Environmental Remediation/Code Compliance • Historic Preservation • Structured Parking • Urban Design/Landscaping • Public Improvements/Utilities Further, Residential Developments over 10 Units may be considered as an individual cost element. For catalytic projects with per unit development cost above $100,000, a 10% threshold will be considered based on available funding, up to $20,000 per unit. 5. Site Management & Development — Beginning in FY 2017, TIRZ #3 will develop a program to facilitate activation of vacant properties within the Zone and propose to City Council adoption of a downtown vacant building ordinance. The program will establish minimum requirements for vacant properties and designate registered properties as eligible for incentives or emergency funding. Funding will be allocated to establish and administer the program. In order to activate strategically located properties, TIRZ #3 may place properties under option and work towards developing proposals for development, then assist in acquisition and development of the properties. Additionally, the Zone may purchase properties outright for redevelopment and dispose of properties, if approved by the Board. Under this initiative, funding may also be expended for stabilization or redevelopment of public, cultural and/or historic properties. 6. Parking Study & Development— In key locations where parking is undersupplied or inadequately distributed, the Zone can assist in providing public parking facilities such as on -street spaces or off- street lots and structures. TIRZ #3 will conduct a study in FY 2016 in order to develop a strategic approach for parking in the Downtown and fund implementation steps. Additionally, the Zone may support any efforts City may undertake for appropriate parking management infrastructure such as meters, lot improvements, structured garages and occupancy monitoring systems. City of Corpus Christi / Corpus Christi Downtown Management District 7. Traffic Pattern Study & Streetscapes — TIRZ #3 may contribute to studies for traffic movement and improvements in roadway infrastructure (repaving, repair, widening, redesign), traffic management infrastructure (signals, signs), and beautification (landscaping in medians, special lighting, etc.) The Zone will contribute up to $150,000 for a traffic pattern study as the first phase of this initiative. Additionally, pedestrian accommodations and streetscapes will be a priority. Funds may also be expended on implementation of infrastructure improvements, as budgeted and listed below: • Streetscape and Safety Improvement Program — Funding $200,000 for Right of Way, afvet Facade, exterior and patio improvements, including sidewalk and patio cafes, to increase lighting and security beginning FY 18, funded annually after. Micro -grants can be administered by DMD and City Staff. • Artesian Park - $150,000 Initial Funding in FY 20, then $50,000 Annual for La Retama & Artesian. • Two Way Conversion Shoreline to Water Street — Up to $400,000 (Funded FY 20, Rolled to FY 21) • General Right of Way Maintenance - $50,000 Annually. • Broadway Bluff Maintenance and Repair Assessment - $150,000 (Funded FY 20, Rolled to FY 21) 8. Other Programs & Initiatives — TIRZ #3 will develop other programs and initiatives that will be presented to the Board for approval, during the life of the Zone. Each year, the following initiatives are being added: • FY 2017 - Downtown Management District Bike Share Initiative • FY 2017 - Downtown Management District Expanded Scope of Services • FY 2018 — Downtown Management District — Cultural District Plan, TIRZ #3 Incentive Programs, registration process for downtown vacant building program, Streetscape Safety & Right of Way Improvement Program and Off -Street Parking Improvement Program. • FY 2019- Unified brand implementation and expanding organizational and operational capacity. • FY 2020- Implementation of approved projects from TIRZ #3 Traffic & Planning Analysis, specifically Artesian Park Upgrades. • FY 2021- Capital Maintenance for public spaces and right of ways throughout the zone and continued capital maintenance. 9. Management & Professional Services- Zone funds will compensate for the costs of ongoing administration of the Zone, including but not limited to accounting, legal services, consulting services, document production and maintenance, and other administrative costs. These costs were originally estimated at $50,000 per year for the 20-year life of the Zone, but to date the only dollars expended have been for state reporting requirements. Staff plans to strategically engage outside resources to evaluate revenue projections and continue to develop innovative, effective programs. Economic Feasibility Study §311.011 (c) (3) The 2008 Market and Economic Feasibility Study for TIRZ #3 was completed by CDS Market Research I Spillette. In 2014 and 2015, Goody Clancy completed additional studies that reflect the more recent 81 City of Corpus Christi / Corpus Christi Downtown Management District environment, and emphasize the importance of residential development in any revitalization. Those studies include: • Residential Market Potential (Zimmerman/Volk) — final • Retail Market Analysis & Strategy (Mike Berne) — draft • Hotel, Office, Retail (W-ZHA, Sarah Woodworth) — draft • Incentives & Development Economics (W-ZHA, Sarah Woodworth) — draft Estimate of Bonded Indebtedness §311.011 (c) (4) It was not anticipated that TIRZ would issue bonded debt, but would be funded on a pay-as-you-go basis. If the annual revenue and available non -bonded debt financing are insufficient to address the needs of TIRZ #3, we may issue bonded debt commensurate with the specific project costs under consideration and anticipated annual Zone revenues to support debt service payments. Timing of Incurring Costs or Monetary Obligation §311.011(c) (5) 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. The following table summarizes proposed planned expenditures for TIRZ #3 until FY 2019. Another set of programs will be proposed in FY 2018, based on an assessment of needs at that time. Schedule of Project Expenditures FY FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 Year 2015 2016 2017 2018 2019 Beg. Bal $1,563,751 $2,333,342 $1,730,387 $1,540,935 $1,631,307 + New Increment' 794,591 997,045 1,160,548 1,440,372 1,615,149 1 Chaparral Street Grant Program2 200,000 200,000 200,000 2 New Tenant Commercial Fin Grant sh nut 100 000 100 000 100,000 See Exhibit C for FY 2017 D 3 Downtown Living Initiative2 000,000 4 Project Specific Developmen Agreement3 Update of Project Budget TBD TBD 5 Site Assembly & Developmei 6 Parking Study & Developmer.. 7 Traffic Pattern Analysis & Streetscapes 150,000 8 Other Programs & Initiative 9 Management & Professional Services 25,000 50,000 50,000 50,000 50,000 Expenditure Totals 25,000 1,600,000 1,350,000 1,350,000 50,000 TIRZ Ending Balance 2,333,342 1,730,387 1,540,935 1,631,307 3,196,456 Notes: 1 Increment Projection developed by CCREDC, will be monitored closely to ensure program allocations 2 Program allocations will be authorized each Fiscal Year. 3 Incentive available will be based on the amount of investment and increment generated by private sector. City of Corpus Christi / Corpus Christi Downtown Management District Method of Financing and Sources of Revenue §311.011(c) (6) Methods of Financing. TIRZ#3 will initially take a primarily pay-as-you-go approach to financing projects that could utilize the following methods: • Cash funds generated from existing property value increment, • Developer cash reimbursement agreements where the revenues from the Zone's property tax increment compensate a developer for fronting eligible expenditures in a specific taxable project. • If future Zone revenues to support debt service payments are anticipated, the Zone may also issue bonded debt, the term of which will not extend past the expected life of the Zone. Sources of Revenue. The primary source of revenue for TIRZ #3 will be funds from the contributed property tax collections of the City of Corpus Christi, Nueces County, and Del Mar College on the taxable property value increment within TIRZ#3. The City, County, and Del Mar College have agreed to participate in funding TIRZ #3 with 100% of the incremental property taxes collected over the life of the Zone.. The assessed value base year for the City of Corpus Christi is 2009; the base year or Nueces County and Del Mar College is 2010. The 2018 adjusted projection of incremental property tax revenue contributed to the Zone is as follows: Sources of Revenue Year Increment Value Tax Revenue City County Del Mar City County Del Mar TOTAL FY 10 $ 8,655,793 $ 50,400 $ - $ - $ 50,400 FY 11 21,931,954 4,698,427 4,674,139 127,703 16,488 12,059 156,251 FY 12 22,782,697 15,449,665 15,290,811 129,988 54,227 39,451 223,666 FY 13 43,910,295 38,988,148 38,041,488 250,533 136,845 98,148 485,526 FY 14 57,920,528 52,767,539 51,604,697 338,988 179,932 129,355 648,275 FY 15 71, 728, 002 See Below for FY 2019 Update 794,591 FY16 90,003,549 997,045 FY 17 104, 763, 037 1,160, 548 of Sources of Revenue FY18 130,022,872 1,440,372 FY 19 145,800,015 1,615,149 FY 20 173,112,004 1,917,707 FY 21 189,976,968 173,075,373 169,261,300 1,111,867 572,776 419,892 2,104,534 FY 22 207, 413, 655 188, 960, 778 184, 796, 638 1,213, 917 625,347 458,431 2,297,695 FY 23 225,441,446 205,384,699 200 858,623 1,319,428 679,700 498,276 2,497,404 FY 24 244,080,379 222,365,390 217,465,110 1,428,515 735,896 539,472 2,703,883 FY 25 263,351,172 239,921,727 234,634,557 1,541,300 793,997 582,065 2,917,362 FY 26 283,275,244 258,073,223 252,386,047 1,657,908 854,068 626,102 3,138,077 FY 27 303,874,743 276,840,056 270,739,314 1,778,469 916,174 671,631 3,366,275 FY 28 325,172,564 296,243,083 289,714,756 1,903,118 980,387 718,704 3,602,209 FY 29 347,192,382 316,303,874 309,333,466 2,031,992 1,046,776 767,373 3,846,141 $ 35,953,109 10IPa_ _ City of Corpus Christi / Corpus Christi Downtown Management District These estimates will continue to be monitored and adjusted annually. Sources of Revenue Year Increment Value Tax Revenue Fiscal Year City County Del Mar Total City County Del Mar TOTAL FY 10 8,938,611 - - 8,938,611 50,400 - - 50,400 FY 11 21,931,959 4,698,427 4,674,139 31,304,526 127,703 16,488 12,059 156,251 FY 12 22,782,697 15,449,269 15,290,811 53,522,776 129,988 54,227 39,451 223,666 FY 13 43,910,295 38,987,148 38,041,488 120,938,931 250,533 136,845 98,148 485,526 FY 14 56,814,718 51,751,996 50,602,120 159,168,834 332,516 176,474 126,842 635,832 FY 15 61,641,842 57,170,457 55,257,674 174,069,974 359,150 189,203 137,079 685,432 FY 16 73,819,407 81,480,890 80,084,765 235,385,063 447,540 254,977 198,669 901,186 FY 17 82,672,144 96,768,777 95,440,711 274,881,633 501,211 294,266 234,936 1,030,413 FY 18 90, 723, 843 94, 622, 680 98,178, 819 283, 525, 342 550,026 287,740 241,676 1,079,442 FY 19 96, 280, 721 110, 962,179 117, 040, 051 324, 282, 951 583,715 337,427 288,105 1,209,247 FY 20 105,165,9511 111, 267, 007 123, 927, 631 340, 360, 589 637,583 338,354 305,059 1,280,996 FY 21 112, 055, 614 127,652, 230 144, 304,130 384, 011, 974 679,353 388,180 355,218 1,422,751 FY 22 121, 974, 293 130,414, 841 155, 674, 539 408, 063, 674 739,486 396,581 383,207 1,519,274 FY 23 130,351,758 147,214,456 178,552,529 456,118,743 790,276 447,667 439,523 1,677,466 FY 24 141, 527, 057 152, 497, 010 194, 956, 096 488, 980,162 858,028 463,731 479,902 1,801,661 FY 25 151, 580, 816 170, 089, 008 221,442, 870 543,112, 694 918,980 517,227 545,102 1,981,309 FY 26 164, 264,179 178, 010, 361 243, 673, 527 585, 948, 067 995,875 541,315 599,824 2,137, 014 FY 27 176, 220, 443 196, 790, 562 275, 051, 046 648, 062, 051 1,068,361 598,424 677,063 2,343,848 FY28 190,697,246 207,528,945 304,184,757 702,410,948 1,156,129 631,079 748,778 2,535,986 FY 29 204, 825, 030 227, 919, 904 341, 971, 692 774, 716, 626 1,241,780 693,086 841,794 2,776,661 Bold=Actuals $12,418,634 $ 6,763,292 $ 6,752,435 $25,934,361 Current Appraised Value & Estimated Captured Appraised Value §311.011(c)(7), (8) According to the Nueces County Appraisal District, the 2009 certified taxable appraised value for the Zone is $310,019,372. The table above projects taxable value increment captured by the Zone over the remainder of its duration, if all taxing entities continue participation. Due to differences in policies regarding exemptions and tax abatements, the captured increment differs among the three jurisdictions. Captured value projections assume a 2.5% annual value appreciation rate for existing development, based on actual property value growth and do not take into account future investments. Duration of the Zone §311.011(c)(91 TIRZ #3 will exist until 2028, however, the Board, City and other taxing entities may agree to extend the Zone. City of Corpus Christi / Corpus Christi Downtown Management District List of Exhibits Exhibit A TIRZ #3 Boundaries and Land Uses Exhibit B Legal Description Exhibit C FY 2017 Project Plan Budget FY 2018 Project Plan Budget FY 2019 Project Plan Budget FY 2021 Project Plan Budget 12IPage City of Corpus Christi / Corpus Christi Downtown Management District Exhibit A — Boundaries & Land Use • TIRZ Boundary EJ • SEA District • Uptown LJ • Marina Arts District (DMD) • Bayshore Park 0 I 1 ale 7h7 (bonne, Legend V 3r d q o,mnc L, arbor 8 tygt Lander tier �wno_p- j ?i u..•..c... fin. .,w aqe-rw.o Wroroorrone arrow c.....r. i.... ' ' ''''''''''" Big b. Mitatar MI a* Dower . II. r000ro ovum. raj m r mn > men* r,� .n,.• Gower... r. wo.'.o.orn ow. ctast pass Mae gam benasx. A., 07..1 Prepared Ely' M88 Pnnrng Date: Thursday, October 18. 20079:14:41 AM Prefects Source: City of Carpus Chnsa - Development Senn. Tax Increment Finance District #3 13IPage City of Corpus Christi / Corpus Christi Downtown Management District Exhibit B - Legal Description of the Zone BEGINNING AT A POINT on the center line of the Corpus Christi Ship Channel and commonly known as the Corpus Christi — Port Aransas Waterway at its intersection with the northerly extension of the West right-of-way line of Sam Rankin Street; Thence Easterly along the centerline of the Corpus Christi — Port Aransas Waterway to its intersection with the northerly extension of a line parallel with the breakwater 50' feet on the east side for a point in the Corpus Christi Bay and the Northeast corner; Thence Southerly along said line, being 50 feet on the East side and parallel with the breakwater, following the meanders of the breakwater in the Corpus Christi Bay to its intersection with an "A-2" zoning line approximately 1,000 feet from the shoreline and parallel with the East right-of-way line of Shoreline Boulevard for a point in the Corpus Christi Bay; Thence Southwesterly along said "A-2" zoning line extending parallel and approximately 1,040 feet from the East right-of-way line of South Shoreline Boulevard to its intersection with a second "A-2" zoning line extending parallel and approximately 1,000 feet from an existing 18 foot seawall easement, inside the Marina Del Sol Boat Harbor, for a point in the Corpus Christi Bay; Thence Southeasterly along said line 200 feet more or less past its intersection with the easterly extension of the south most boundary of Lot 3, Block 1 of Marina Del Sol Subdivision for a point in the Corpus Christi Bay and the Southeast corner; Thence Southwest along a line 200 feet more or less to the South and parallel with the extension of the south boundary of Lot 3, Block 1 of Marina Del Sol Subdivision to the Corpus Christi Bay Shoreline; Thence Northwest along the Corpus Christi Bay Shoreline to its intersection with the extension of the South most boundary of Lot 3, Block 1 of Marina Del Sol Subdivision; Thence Southwest along the South boundary of Lot 3, Block 1 of Marina Del Sol Subdivision, 540 feet more or less to the centerline of Ocean Drive for a point; Thence Northwest along the centerline of Ocean Drive to its intersection with the centerline of Morgan Avenue; Thence Southwest along the centerline of Morgan Avenue, to a point in the center line of Santa Fe Street for the Southwest corner; Thence Northwest along the centerline of Santa Fe Street to its intersection with the centerline of Hancock Street; Thence Southeast along the centerline of Hancock Street to its intersection with the centerline of South Tancahua Street:; Thence Northerly along the centerline of South Tancahua Street, passing Furman, Coleman, Park, Agnes, and Laredo Street, to a point in the centerline where South Tancahua becomes North Tancahua, and continuing along North Tancahua, passing Kinney, Blucher, Comanche, Lipan, Leopard, Antelope and Buffalo Street and continuing past IH 37 to its intersection with the centerline of the existing northwest frontage road of I.H. 37, for a point; Thence Northeast along the centerline of said existing northwest frontage road of I.H. 37 to its intersection with the South right-of-way line of West Broadway Street for a point; Thence along the South right-of-way line of West Broadway Street to its intersection with the westerly extension of the South right-of-way line of Concrete Street for a point; Thence Northeasterly along the South right-of-way line of Concrete Street extended, to its intersection with the north right-of- way line of West Broadway Street, for a point; Thence Northwesterly along the North right-of-way line of West Broadway Street to the Southeast property line of the City of Corpus Christi's Broadway Wastewater Treatment Plant; Thence Northeasterly along the City of Corpus Christi's Broadway Wastewater Treatment Plant Southeast property line to its intersection with the common South boundary line of Lots 1, Block 58 of the Beach Addition; Thence West along the South boundary line of Lot 1, Block 58 out of the Beach Addition, to its Southwest corner for a point; 14 i City of Corpus Christi / Corpus Christi Downtown Management District Thence Northwest along the common, West boundary line of Lots 1 thru 6, Block 58, of the Beach Addition, to its intersection with the South right-of-way line of Resaca Street; Thence Northeast along the South right-of-way line of Resaca Street to its intersection with the centerline of Tancahua Street, fora point; Thence Northwest along the centerline of Tancahua Street to its intersection with the centerline of Port Avenue, for a point; Thence Southwest along the centerline of Port Avenue, to its intersection with the West right-of-way line of Sam Rankin Street for an outside corner; Thence Northerly along the West right-of-way line of Sam Rankin Street and its extension to its intersection with the centerline of the Corpus Christi — Port Aransas Waterway center line in the Corpus Christi Ship Channel to the POINT OF BEGINNING. Excluded properties to meet state statute prohibiting Tax Increment Financing Districts from containing 10% or more of the area used for residential purposes: Beach Addition Block 55 Lots 10 thru 12 15IPage City of Corpus Christi / Corpus Christi Downtown Management District Exhibit C Tax Increment Reinvestment Zone #3 Proposed Budget FY 2017 rm Year FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Budget Actual Budget Estimated Proposed Future Future Beg. Bal $ 1,563,751 $ 1,563,751 $ 2,297,833 $ 2,253,569 $ 2,930,612 $ 2,253,464 $ 1,508,279 + Increment Revenue $ 734,082 $ 691,162 $ 994,117 $ 865,843 $ 1,127,852 $ 1,409,815 $ 1,762,269 1 Chaparral St. Grant Program - inishOutGrantPro 3DowtowntCommetiatival 3 DowntownLiving lnitiative See Below for FY 2018 Update - ; 4 Project Specific Development Agreement - 6 SiteAssembly & Development 6 Parking Study & Development of Project Budget - 7 Traffic Pattern Analysis & Streetscapes 1,000,000 8 Other Programs & Initiatives 420,000 9 Management & Professional Services ,.,- , , ,,,,,,,,,,, .,,,,,,,, „ �,,,,,,,, ,,,, ,.,,., 50,000 TOTAL EXPENDITURES $ $ 1,344 $ 1,60Q000 $ 188,800 $ 1,805,000 $ 2,155,000 $ 1,470,000 End Bal $ 2,297,833 $ 2,253,569 $ 1,691,950 $ 2,930,612 $ 2,253,464 $ 1,508.279 $ 1,800,548 Notes: 1 Ending FY 2016 Increment is not final. 2 Other Programs & Initiatives are DMD Requests for funding in FY 17. Project Plan will need to be updated to reflect changes. I I I I I I I I Proposed Budget FY 2018: FY 2016 FY 2016 FY 2017 FY 2018 Budg :Actual Budget _; ',Estimated Proposed Beg. Bal $ 2297,833 $ 2,253,569 $ 2,953,576 $ 2,992,483 $ 3,388,432 + Increment Revenue $ 994,117 $ 914,191 $ 1,127,852 $ 1,070,317 $ 1,291,273 1 Chaparral St. Grant Program S 700 non S 71 947 S 7nn nnn 4 tnn nnn 4 'on n00 New Tenant CommercialFinishOut E 00 2 3 Downtown LivingInitiative See Below for FY 2019 Update 00 4 Project Specific Development Agreerr 5 Site Ma nagement & Devel opment 00 6 Parking Study &Development of Project Budget 00 Traffic Pattern Analysis & Streetscap 00 7 8 Other Programs & Initiatives 00 9 Management & Professional Services 5 50,000 i $ 4,801 $ 50,000 $ 9,368 $ 50,000 TOTAL EXPENDITURES $ 1,600,000 1$ 175,277 $ 1,805,000 $ 674,368 $ 2,220,000 End Bal $ 1,691,950 $ 2,992,483 $ 2,276,428 r$ 3,388,432 $ 2,459,705 16IPage City of Corpus Christi / Corpus Christi Downtown Management District Proposed Budget FY 2019: Year FY 2016 I FY 2017 FY 2018 FY 2019 Actual Actual Budget Estimated Proposed Beg_ Bal $ 2,253,569 $ 2,992,483 $ 3,348,528 $ 3,626,061 $ 3,627,056 + Increment Revenue $ 914,191 $ 1,030,413 $ 1,320,973 $ 1,154,516 $ 1,409,013 1 Chaparral St. Grant Program $ 71,942 $ 100,000 $ 200,000 $ 200,000 $ 200,000 2 New Tenant Commercial Finish Out Grant Program $ - $ 15,000 $ 100,000 $ 68,220 $ 100,000 3 Downtown Living Initiative $ - $ - $ 725,000 $ 92,500 4 Project Specific Development Agreement $ - $ - $ - $ - 5 Site Management & Development $ - $ - $ 100,000 $ 40,000 $ 130,000 6 Parking Study & Development $ 98,534 $ 50,000 $ 150,000 $ 100,000 $ 200,000 7 Traffic Pattern Analysis & Streetscapes $ - $ 150,000 $ 500,000 $ 200,000 $ 350,000 76 Streetscape Safety & Right of Way Improvement Program $ 100,000 $ 200,000 8 Other Programs & Initiatives $ - $ 350,000 $ 395,000 $ 410,000 $ 450,000 9 Management & Professional Services $ 4,801 $ 9,368 $ 50,000 $ 35,301 $ 59,102 TOTAL EXPENDITURES $ 175,277 $ 674,368 $ 2,220,000 '$ 1,153,521 $ 1,231,602 End Bal $ 2,992,43.3 $ 3,343,522 $ 2,449,501 $ 3,627,056 $ 3,204,472 See Below for FY 2021 Update of Project Budget Account Description Actuals 2018 - 2019 Original Budget 2019 - 2020 Amended Budget 2019 - 2020 Estimated 2019 - 2020 Adopted 2020 -2021 $ $ $ TIRZ#3 Project Plan $ 18,964.00 - 68,145.00 - $ - $ $ $ Chaparral St Grant Program $ 101,469.00 200,000.00 400,000.00 279,585.00 $ 200,000.00 New Tenant Commercial Finish $ $ $ Out $ 61,700.00 100,000.00 106,490.00 14,378.00 $ 100,000.00 $ $ $ Downtown Living Initiative $ - - 1,665,000.00 1,665,000.00 $ - Development Tax $ $ $ Reimbursement $ - - 15,000.00 - $ 370,000.00 Site Management and $ $ $ Development $ 152,151.00 - - - $ - Downtown Vacant Bldg. Code $ $ $ Enforcement $ 1,989.50 50,000.00 50,000.00 5,884.00 $ 25,000.00 $ $ $ Parking Meter Replacement $ - 100,000.00 100,000.00 - $ 100,000.00 $ $ $ Off-street Parking Improvement $ - 100,000.00 100,000.00 - $ - $ $ $ Traffic Pattern Analysis $ - 400,000.00 550,000.00 550,000.00 $ 350,000.00 Streetscape & Safety $ $ $ Improvements $ 18,246.00 200,000.00 345,735.00 348,259.00 $ 200,000.00 17IPage City of Corpus Christi / Corpus Christi Downtown Management District DMD Agreement $ 376,317.00 $ 510,000.00 $ 532,016.00 $ 532,016.00 $ 510,000.00 Management & Professional $ $ $ Services $ 111.00 4,000.00 4,000.00 - $ 4,000.00 $ $ $ Transfer to General Fund $ 55,102.00 127,082.00 127,082.00 127,081.51 $ 126,924.00 $ $ $ TOTAL EXPENDITURES $ 786,049.50 1,791,082.00 4,063,468.00 3,522,203.51 $ 1,985,924.00 18'Page