HomeMy WebLinkAbout033032 ORD - 05/09/2023Ordinance approving the amended Tax Increment Reinvestment Zone
#3 Project & Financing Plans as approved by the Board of Directors of
Reinvestment Zone Number Three, City of Corpus Christi, Texas on
March 28, 2023, which amends the Downtown Living Initiative and
Streetscape and Safety Improvement programs, adds eligible projects
for public space, right-of-way, and streetscape development, and adds
an additional incentive program named the Targeted Office to
Residential Conversion 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 December 20, 2022;
WHEREAS, on March 28, 2023, 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 amends the Downtown
Living Initiative and Streetscape and Safety Improvement programs, adds eligible projects
for public space, right-of-way, and streetscape development, and adds an additional
incentive program named the Targeted Office to Residential Conversion Program;
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 March 28, 2023. A copy
of the Plan is attached hereto and incorporated by reference.
033032
SCANNED
That the foregoing ordinance was read for the first time and passed to its second
reading on this the )6 day of Apr; r
4
Paulette Guajardo
Roland Barrera
Sylvia Campos
Gil Hernandez
Michael Hunter
n
, 2023, by the following vote:
Jim Klein
Mike Pusley
Everett Roy
Dan Suckley
Thatfle foregoing ordinance was read for the second time and passed finally on this
the 1day of c-1 , 2023, by the following vote:
Paulette Guajardo
Roland Barrera
Sylvia Campos
Gil Hernandez
Michael Hunter
;NThwN-
Jim Klein 1 7
Mike Pusley A
d
Everett Roy Ay,
Dan Suckley
PASSED AND APPROVED on this the "t day of i ' , , 2023.
ATTEST:
e-04-W/N- 1661-6C12;l4pa441
Rebecca Huerta Paulette Guajardo
City Secretary Mayor
033032
City of Corpus Christi / Corpus Christi Downtown Management District
Downtown Corpus Christi
Tax Increment Reinvestment Zone #3
Project and Financing Plan
'1
City of Corpus Christi / Corpus Christi Downtown Management District
Contents
Introduction 3
Criteria for Zone Creation 3
A Consistent Vision for Downtown 3
Anticipated Zone Role in Downtown Improvements 4
Project Plan 4
Existing Uses and Conditions/Boundaries §311.01 (b) (1) 4
SEA District - 4
Uptown — 5
Marina Arts District (Downtown Management District) — 5
South Downtown — 5
Municipal Ordinances §311.011 (b) (2) 6
City Planned Improvements (Non Project Costs) §311.011 (b) (3) 6
Relocation §311.011 (b) (4) 6
Financing Plan 6
Estimated Project Cost Description (§311.011 (c) (1) & Kind, Number and Location of TIRZ
Improvements §311.001 (c) (2) 6
Economic Feasibility Study §311.011 (c) (3) 10
Estimate of Bonded Indebtedness §311.011 (c) (4) 11
Timing of Incurring Costs or Monetary Obligation §311.011(c) (5) 11
Method of Financing and Sources of Revenue §311.011(c) (6) 11
Methods of Financing. 11
Sources of Revenue 11
Current Appraised Value & Estimated Captured Appraised Value §311.011(c)(7), (8) 12
Duration of the Zone §311.011(c)(9) 12
Exhibit B. - Legal Description of the Zone 14
Exhibit C. - Tracking List of Project Plan Changes By Year 16
Exhibit D. Downtown Development Projects 17
21 Page
City of Corpus Christi / Corpus Christi Downtown Management District
Introduction
The Downtown Corpus Christi Tax Increment Reinvestment Zone #3 (TIRZ #3) will provide the programs,
projects and financing needed to develop public improvements and support economic development
activities associated with revitalization of the greater downtown Corpus Christi area.
TIRZ #3 consists of a twelve person Board of Directors, is supported by the City's Economic Development
staff and the Corpus Christi Downtown Management District (DMD). In 2008, through Ordinance 027996,
the City of Corpus Christi created TIRZ #3 over a portion of the city that includes the DMD, as well as all
blocks north east of Tancahua Street and Morgan Avenue. In 2015, Ordinance 03592 modified the scope
of TIRZ #3, based on findings of the City's Downtown Area Development Plan (DADP).
A timeline of subsequent amendments to this document can be found in Appendix.
Criteria for Zone Creation
The 2008 Project Plan stated that the defined area of TIRZ #3 qualifies for designation as a "Reinvestment
Zone" because it suffers 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 that meet the Criteria of Chapter 311,
Section 005 include:
• 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."
A Consistent Vision for Downtown
For decades, planning efforts have 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 further implementation was limited. Other planning efforts have included:
2004— Bayfront Master Plan — City of Corpus Christi Planning Department
2006 — Downtown Redevelopment Report
2013 — Central Business Development Plan — City of Corpus Christi Planning Department
2014 — Regional Urban Design Assistance Team - UDAT
2014 — Three Year Strategic Plan — Downtown Management District
2015 — Downtown Area Development Plan — City of Corpus Christi Planning Department
2017 — Three Year Strategic Plan — Downtown Management District
2022 — 2027 Five Year Strategic Plan
3IP=ge
City of Corpus Christi / Corpus Christi Downtown Management District
The 2006 Redevelopment Report vision statement is consistent with the vision illustrated in the 2015
Downtown Area Development Plan.
"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 TIRZ #3. 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.
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 a key catalyst and funding source to change the public environment in Downtown. By
establishing programmatic frameworks we are able to leverage private sector funding and serve the public
purpose of eliminating blight. By improving and enhancing streets, sidewalks, and public spaces, and
upgrading utilities, TIRZ #3 will facilitate vacant land development and the redevelopment or
rehabilitation of existing uses. The intended result is a vibrant Downtown and economically vital urban
waterfront district with a variety of residential, retail, and lodging uses, a strong office base, and popular
public facilities.
Project Plan
Existing Uses and Conditions/Boundaries §311.01 (b) (1)
TIRZ #3 includes approximately 856 acres wholly within the City of Corpus
Christi. 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
• Corpus Christi Museum of Science & History
• Art Museum of South Texas
41 Page
City of Corpus Christi / Corpus Christi Downtown Management District
• Whataburger Field • Street Icehouse
• American Bank Convention Center & Arena • Concrete Street Amphitheater
• Harbor Playhouse • Railroad Seafood
• Brewster
• Heritage Park
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 Street marks a topographical change with a historically designated balustrade, one of the City's
first infrastructure improvements. The higher elevation area to the west of the street north of Lipan Street
is characterized mainly by professional office uses and 11 high-rise towers. TIRZ #3 picks up two blocks of
Uptown, with Tancahua Street as the west border. Overall occupancy for the Downtown office market is
around 70 percent.
West of the TIRZ #3, 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 Street 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 DMD 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 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 non existent or in deteriorated
condition.
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.
South Downtown — 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.
51 Page
City of Corpus Christi / Corpus Christi Downtown Management District
A defining feature of this neighborhood is the 34 acres of park land called Water's Edge. 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 and recently completed a $325 million upgrade. This area has had multiple
district names....
Municipal Ordinances §311.011 (b) (2)
Changes to municipal ordinances in TIRZ #3 may include: requirements for vacant buildings, requirements
for vacant land, development codes to support residential and recreational activity, design requirements
to support the downtown character.
City Planned Improvements (Non -Project Costs) §311.011 (b) (3)
The City operates a robust public improvement program, utilizing voter approved bond funds, capital
improvement funds, and general fund improvements. Recently completed projects and planned projects
are listed below.
Project
Source
Timeframe
Cost
Status as of 1/2023
Shoreline Realignment
Bond 2008
Ongoing
$13,000,000
Done
SEA District Pedestrian
Bond 2012
2015-2016
$500,000
Done
Improvements
Chaparral Street Two Way
Bond 2014
2015-2016
$9,000,000
Done
Conversion
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
2022
$500,000
In Progress
Shoreline Crosswalks
Bond 2018
2022
$850,000
In Progress
Downtown Lighting
Bond 2018
2023
$650,000
Pending Design
Broadway Bluff Balustrade
Bond 2022
2023
$2,600,000
Pending Design
Stabilization
Water Street Reimagined
CIP &
Estimated to
Pending Design
Future Bond
Future
cost
$20,000,000
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 will participate in projects that support the development and economic activity projected in the
DADP. With vast vacancy and deferred maintenance, these public private partnership programs provide
frameworks that create a signal for private sector investment. The focus is on street level vibrancy,
residential and mixed-use development. Generally, TIRZ #3 will aim to provide under 20% of project cost,
but may provide up to 30% for catalytic projects and excessively blighted spaces. Exceptions may be made
61 Page
City of Corpus Christi / Corpus Christi Downtown Management District
to the guidelines below for catalytic projects with TIRZ #3 Board approval. The DMD is contracted through
interlocal service agreement to manage the programs and initiatives below. Estimated project cost is $25
million, equivalent to the anticipated revenues. TIRZ #3 will make funding available for five targeted
development programs and additional initiatives:
1. Targeted Vacant Property Improvement Grant Program (Created 2016) — This matching grant
program will support and encourage private investment in the built environment along Chaparral
Street and Mesquite Street. Due to its "Main Street" characteristics and its function of connecting the
Marina Arts District and SEA Districts, Chaparral Street is a first phase priority for successful
revitalization of TIRZ #3. Due to the vacancy rate and existing building stock along Mesquite, it is a
second phase priority. TIRZ #3 will consider a 50/50, on renovation construction costs.
2. Commercial Finish -Out Grant Program (Created 2016) — To create more dining, retail and
entertainment venues, TIRZ #3 will agree to 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
finish out or remodels, the incentive, they must be established for at least 10 -years. Evidence of
operation must be provided upon application submission. Qualified finish -out expenses include floor
and wall upgrades, HVAC, kitchen equipment, and other permanent, semi-permanent fixtures. Grant
is reimbursable to the Tenant, but written approval must come from Landlord in application.
Landlord Policy — Due to severe lack of building maintenance, many buildings require significant
mechanical, electrical, or plumbing repairs that cannot be funded by a small business tenant. Thus,
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 on first -floor, active street use
projects.
Micro Grant Policy - smaller scale, expedited $10,000 micro -grants can 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.
3. Downtown Living Initiative (Created 2016) — The DADP stated that over the next 5 years, 1,850 new
units could be absorbed in the greater downtown if the investor return made investment attractive.
This figure has been confirmed in subsequent residential demand studies. To stimulate development,
TIRZ #3 will provide a $30,000 per unit reimbursement grant for multi -family developments of over 3
units that meet the required design criteria. Additional per unit funds may be allocated, up to 30% of
the per unit development cost for vacant building rehabilitation, office conversion or new
construction. Depending on the scale of the project, this may be paid in a lump sum or over a period
of several years from increment generated by the project.
4. Project Specific Development Agreement (Created 2016) — 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
71 Page
City of Corpus Christi / Corpus Christi Downtown Management District
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
5. Streetscape and Safety Improvement Program (Created 2018) — Following the 2017 Traffic &
Planning Analysis, TIRZ #3 created a program to assist with improvements that increased quality of
streetscapes and safety in the zone. This includes reimbursement of 50% of costs for exterior facade,
patio improvements, parklets, sidewalk and patio cafes, lighting, security, and other items identified
as meeting the spirit of the program. Additionally, the roof of a vacant structure will qualify if the
scope of work includes activating the property. Smaller scale expedited $10,000 micro -grants can 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.
Projects supported through these programs will be updated in Exhibit E.
Through an interlocal agreement with the DMD, TIRZ #3 will pursue development initiatives in four
categories:
6. Site Management & Vacancy Development —TIRZ #3 developed a program to activate vacant
properties within TIRZ #3, resulting in the adoption of a downtown vacant building ordinance in 2018.
The program will establish minimum requirements for vacant properties and designate registered
properties as eligible for incentives or emergency stabilization 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, TIRZ #3 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. Target properties include:
• The Ritz Theater (1929)
• The Montgomery Ward Building (1936)
• Blacknall Auto Dealer (built 1912)
7. Parking Development— In 2016 TIRZ #3 conducted a study to develop a strategic approach for parking
in the Downtown and fund implementation steps. TIRZ #3 will continue to fund implementation of
this study, as well as further analysis to develop the parking system into a functional business model.
This includes improving public parking facilities such as on -street spaces or off-street lots and
structures. Additionally, TIRZ #3 may support any efforts for appropriate parking management
infrastructure such as meters, lot improvements, structured garages, and occupancy monitoring
systems.
Wage
City of Corpus Christi / Corpus Christi Downtown Management District
8. Public Space, Right of Way & Streetscape Development — In 2017, TIRZ #3 conducted a study to
strategically approach traffic patterns and movement throughout the zone. TIRZ #3 may contribute
to implementation of the study, infrastructure (repaving, repair, widening, redesign), traffic
management infrastructure (signals, signs), and beautification (landscaping in medians, special
lighting, etc.). Additionally, pedestrian accommodations and streetscapes will be a priority. Funds may
also be expended on implementation of infrastructure improvements, as listed below:
• Artesian Park & La Retama Park Rehabilitation - $150,000 in FY 20 and $50,000 Annually for
new improvement projects.
• Special Purpose or Pocket Parks, Including Norma Urban Park, Sherrill Park, and Spohn Park.
• Two Way Street Conversions - $400,000 in FY 21
• Right of Way Maintenance - $100,000 Annually
• Broadway Bluff Balustrade Maintenance and Repair Assessment
• Water Street Reimagined - $25,000 in FY 21, Additional Funding for Implementation
• Agnes Laredo Entrance Reimagined
• Lighting Improvements
• Pedestrian Improvements
9. Targeted Office to Residential Conversion Program (Created 2023) -
Requirements
Only the properties listed below will be eligible for this program. Properties not included on this list
may be considered on an individual basis. The project requires a minimum improvement investment
amount of $5,000,000 (not including the purchase of the building or demolition) and must create a
minimum of 25 residential units. The total allowable reimbursement is not to exceed 30% of the
construction cost associated with the conversion or in support of the conversion. Performance
milestones will be included in the agreement and these milestones may include:
• Securing financing
• Permit submittal
• Construction start
• Project completion
The project must include exterior design features such as architectural lighting and design -oriented
landscaping. This program may be layered with the Downtown Living Initiative & Streetscape
programs only. This program will expire on 12/31/25. Applications must be submitted prior to this
date to be considered.
Eligible Expenses for Reimbursement
• 50% Reimbursement for Eligible Improvements include:
o Mechanical, Electrical, & Plumbing
o Structural (Exterior walls, roof, foundation, building core, and stairwells)
o Fire Safety
o Elevator (Cabin structure, cable & hydraulic systems, and mechanical or electrical
systems)
o Not intended for cosmetic or programming improvements
o Environmental Remediation: i.e. asbestos, lead, and other recognized environmental
conditions (RECs)
o Parking Garage that includes a portion available for public parking
• While reimbursement is intended for the residential conversion costs only, improvements to
non-residential portions of the building may be deemed an eligible expense if they support
9IPa,_
City of Corpus Christi / Corpus Christi Downtown Management District
the converted residential units and are included on the list of expenses eligible for
reimbursement under this program.
• Developer reimbursement payout to be within 5 years after the completion of the project but
a shorter payout period may be considered. Reimbursement schedule dependent upon
available TIRZ fund balances.
Eligible Bui ding List
Building Name
Address
Building
Name
Address
Bayview Tower
400 Mann
Park Tower
710 Buffalo
Guaranty Title Bldg
921 N Chaparral
The
Chamberlain
807 N Upper Broadway
Caller Times Bldg.
820 N Lower Broadway
802 NC
802 N Carancahua
One Shoreline Plaza
801 N Shoreline
Petroleum
Tower
811 N Carancahua
Furman Plaza
418 Peoples
Former Wells
Fargo Bldg
615 N Upper Broadway
Peoples Street Bldg.
402 Peoples
American
Bank Plaza
711 N Carancahua
Plains Capital Bank Tower
500 N Shoreline
600 Building
600 Leopard
1st Community Bank Tower
500 N Water
Wilson Plaza
606 N Carancahua
Former Supreme Lending Bldg.
325 Mesquite
Tower II
555 N Carancahua
Bay Building
101 N Shoreline
Borden
Insurance
Bldg
210Carancahua
10. Technology, Innovation, and Startup Ecosystem Development — TIRZ #3 contains over 3,000,000
square feet of office space that has maintained a high level of vacancy since the late 1980's. TIRZ #3
will support the development of an ecosystem where technology, innovation, startups, and
entrepreneurs may launch new enterprises and contribute to the economic development of the
downtown area. Specific projects may include Wi-Fi expansion, a co -working space, business
incubator, and other platforms, in partnership with the DMD, CCREDC, Texas A&M University Corpus
Christi, Del Mar College, and other innovation -oriented institutions.
Finally, TIRZ #3 will compensate the City and the DMD (subject to an interlocal agreement between the
TIRZ #3 and the DMD) for the costs of ongoing administration of TIRZ #3, including but not limited to
accounting, legal services, consulting services, document production and maintenance, and other
administrative costs. 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 support of the DADP, Goody Clancy completed additional studies that reflect the more recent
environment, and emphasize the importance of residential development in any revitalization. Additional
analysis have been undertaken to keep data updated. Those studies include:
101Page
City of Corpus Christi / Corpus Christi Downtown Management District
• 2014 Residential Market Potential (Zimmerman/Volk)
• 2014 Retail Market Analysis & Strategy (Mike Berne)
• 2014 Hotel, Office, Retail (W-ZHA, Sarah Woodworth)
• 2014 Incentives & Development Economics (W-ZHA, Sarah Woodworth)
• 2017 Residential Analysis - (RCLCO)
• 2021 Residential Analysis - (RCLCO)
• 2021 Retail Leakage Report— (The Retail Coach)
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 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 TIRZ #3 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.
Annual Budgets are included in Exhibit C.
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 TIRZ #3 property tax
increment compensate a developer for fronting eligible expenditures in a specific taxable project.
• If future TIRZ #3 revenues to support debt service payments are anticipated, the TIRZ #3 may also
issue bonded debt, the term of which will not extend past the expected life of the TIRZ #3.
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:
111 Page
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
FY 28
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)(9)
TIRZ #3 will exist until 2028, however, City may extend the term of the TIRZ #3 by ordinance and other
taxing entities may choose to participate for the additional term.
121 Page
City of Corpus Christi / Corpus Christi Downtown Management District
Exhibit A — Boundaries & Land Use
• TIRZ Boundary O
• SEA District
• Uptown
• Marina Arts District (DMD)
• Bayshore Park 0
I 1
I I
Tax Increment
Finance District #3
1
a
Legend
omwa rl
aiming Land U.
• --"
a:3.3 �.-„......
HearI
r,rend
Me
P.
11111 Mogan Nat,*
t
City ul
Cor�w
Ch1'p u
•
r.�.cw.v r....n&at am msmaty ..,,ra"'”
IMplmtlea .,..wa tiw (N. .ta•anw«ro utom, _
r.A.,..,.. rp
Prepared By MBB
Ponbn9 Date; Thursday, October 19. 2007 9:14:41 AM
Project: Source: City of Corpus Christi- 0evelopment Semcas
131 Page
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;
141 Page
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,
for a 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
151 Page
City of Corpus Christi / Corpus Christi Downtown Management District
Exhibit C. - Tracking List of Project Plan Changes By Year
April 2009 — Expansion of Boundaries
March 2012 - Correction of Termination Date
August 2014 - Correction of Board Composition
First Amendment (FY 2015) — Overhaul and update of the project and financing plan based upon new
market information and the Downtown Area Development Plan findings.
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— FY2017 Project Plan Budget.
Third Amendment (FY 2017) — 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 2018) — 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.
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. This Amendment
modifies the Streetscape and Safety Improvement Program to extend eligibility to patio cafes as an
exterior improvement.
Seventh 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 qualifying categories.
Eighth Amendment (FY 2023) this Amendment adds Innovation and Tech Led Economic Development.
Ninth Amendment (FY 2023) this Amendment increased per unit incentive for the Downtown Living
Initiative to $30,000 or $30,000 of per unit development costs; added roofs as a qualifying category for
Streetscape & Safety Program and added special use and pocket parks to Public Space, Right of Way and
Streetscape Development.
16 !Page
City of Corpus Christi / Corpus Christi Downtown Management District
Exhibit D. Downtown Development Projects
Completed Projects
The Chamberlain
Address
807 N Upper Broadway
Incentive
Project Specific
TIRZ Meeting
9/17/19
Performance
Deadline
3/31/21
Project Cost
$ 11,000,000.00
Incentive Value
$ 520,000
Incentive
Paid Out
$ 520,000
Frost Bank
5015 Shoreline
Project Specific
10/24/17
3/31/21.
$ 35,000,000.00
$ 600,000
$ 600,000
Marriott
309 N Shoreline
Project Specific
11/15/16
11/30/19
$ 15,000,000.00
$ 940,000
$ 148,965
Stonewater (401 S Water)
401.5 Water
Project Specific
5/15/18
6/30/19
$ 755,000.00
$ 200,000
$ 209000
Centre Theatre LLC (301 Chap)
301 N Chaparral
Chap Street
7/24/18
4/30/19
$ 18,964.00
$ 9,482
$ 9,482
Centre Theatre LLC (305 Chap)
305 N Chaparral
Chap Street
7/24/18
4/30/19
$ 18,964.00
$ 9,482
$ 9,482
H2O Market Trust - Lucy's
312 N Chaparral, Ste. A
Chap Street
12/4/18
4/1/19
$ 72,465.00
$ 20,390
$ 20,390
Chels Marie
903 N Chaparral
Chap Street
11/20/18
$ 16,878.00
$ 8,439
$ 8,439
Urbana
424 Chaparral
Chap Street
1/26/16
$ 500,000.00
$ 72,000
$ 72,000
BUS
702 N Chaparral
Chap Street
2/1/17
2/1/18
$ 940,000.00
$ 100,000
$ 100,000
Limerick Apts (Ronjo V)
2015 Chaparral
DLI
9/17/19
8/31/20
$ 1,700,000.00
$ 220,000
$ 220,000
Studio44Apts
817 N Carancahua
DU
4/12/16
7/31/19
$ 2,900,000.00
$ 185,000
$ 185,000
Muse Bistro (Tenant)
414 Starr
New Tenant
1/28/20
10/31/20
$ 40,000.00
$ 7,888
$ 7,888
Fresco (Tenant)
619 N Chaparral
New Tenant
3/19/19
7/31/19
$ 92,000.00
$ 22,640
$ 22,640
K Space (Tenant)
623 N Chaparral
New Tenant
2/29/20
2/29/20
$ 32,450.00
$ 6,490
$ 6,490
Cre8ive Culture (Tenant)
423 William
New Tenant
2/27/18
$ 34,548.00
$ 6,910
$ 6,910
Nueces Brewing (Tenant)
401 5 Water
New Tenant
5/15/18
6/30/19
$ 1,070,000.00
$ 61,700
$ 61,700
Produce Art Gallery
419 Peoples
New Tenant
9/29/20
7/31/21
$ 63,500.00
$ 7,500
$ 7,500
Elizabeth's
Art Museum
New Tenant
3/30/21
7/31/21
$ 95,533.00
$ 23,280
$ 23,280
Commons
New Tenant (Admin)
4/30/21
$ 20,000.00
$ 5,475
$ 5,475
Americano Properties
415-419 Peoples
Streetscape
8/27/19
8/31/20
$ 425,000.00
$ 93,450
$ 93,450
Dtown Carwash Club (Tenant)
417 Mesquite
Streetscape
12/17/19
10/31/20
$ 500,000.00
$ 45,923
$ 45,923
Aka Sushi
415 N Water
Streetscape
11/19/19
4/30/20
$ 434,000.00
$ 117,300
$ 117,300
Dokyo
424 N Chaparral
Streetscape
9/17/19
1/31/20
$ 440,000.00
$ 36,527
$ 36,527
Shook
106 N Chaparral
Streetscape
2/19/19
9/30/19
$ 6,164.00
$ 3,082
$ 3,082
HOR
623 Mesquite
Streetscape
2/19/19
4/30/19
$ 15,572.00
$ 7,786
$ 7,786
The Goldfish Bar (Treiber)
724 Mesquite
Streetscape
2/7/20
4/7/20
$ 85,000.00
$ 9,230
$ 9,230
H2O Market Trust -Oyster Bar
309 N Water
Streetscape
9/23/19
1/31/20
$ 21,964.00
$ 10,000
$ 10,000
H2O Market Trust - Lucy's
312 N Chaparral, Ste. A
Streetscape
3/5/19
4/5/19
$ 7,138.00
$ 3,569
$ 3,569
Tim Clower - K Space
623 N Chaparral
Streetscape
8/27/19
3/31/20
$ 40,150.00
$ 20,075
$ 20,075
Visit CC
309 N Water, Ste. D
Streetscape (Admin)
11/13/20
1/31/21
$ 465.00
$ 233
$ 233
Rockit's
709 N Chaparral
Streetscape
$ 21,200.00
$ 10,000
$ 10,000
IBC
2215 Shoreline
Streetscape
9/30/18
$ 16,721.00
$ 8,360
$ 8,360
GoldFish (R. Cooper)
724 Mesquite
Streetscape
$ 2,534.00
$ 1,267
$ 1,267
Water Street Gardens
Streetscape (Admin)
2/5/21
4/1/21
$ 22,000.00
$ 10,000
$ 10,000
AAdi
1001 2nd St
Streetscape
4/27/21
9/30/21
$ 168,000.00
$ 24,036
$ 24,036
ESC K2
209 N Water
Streetscape
7/27/21
10/31/21
$ 37,226.00
$ 18,613
$ 18,613
Aadi Mural
1001 2nd St
Streetscape
1/24/22
5/30/22
$ 20,150.00
$ 9,825
$ 9,825
Vernon's
1030 3rd St
Streetscape
10/22/21
9/21/21
$ 23,870.00
$ 10,000
$ 10,000
Private Wealth Group
1102 Santa Fe
Streetscape
9/21/21
9/30/22
$ 133,500.00
$ 66,750
$ 66,750
Hypebyke
311 Peoples
Commercial Finish Out
1/22/22
12/31/22
$ 34,825.00
$ 12,000
$ 12,000
Hybrid Records
417 Peoples
Commercial Finish Out
1/22/22
4/30/22
$ 20,000.00
$7,040
$7,040
All Good Fitness
424 Schatzel
Commercial Finish Out
5/24/22
1/31/22
$ 100,000.00
$ 39,000
$ 23,010
r$ 71,988,456
'$ 1,247,452
$ 1,205,952
This will be updated when project plan is amended.
171Page