Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
033160 ORD - 09/05/2023
Ordinance approving amendments to the Tax Increment Reinvestment Zone #2 Amended Project & Financing Plans approved by the Board of Directors of Reinvestment Zone Number Two, Corpus Christi, Texas, recommending the allocation of $150,950,000 in future revenue to specified projects including water and wastewater infrastructure, parks, mobility projects, developer reimbursement, and administration costs. WHEREAS, in 2000, through Ordinance 024270, the City of Corpus Christi created a tax increment financing district, to be known as "Reinvestment Zone Number Two, City of Corpus Christi, Texas" (The "Zone" or "TIRZ #2"), over a portion of the City on Padre Island; WHEREAS, Ordinance 024270 included a preliminary reinvestment zone financing plan; WHEREAS, on September 29, 2009, the City Council passed Ordinance 028329, which approved the Revised Project and Financing Plans for the Reinvestment Zone Number Two, City of Corpus Christi, Texas (the "Plan"); WHEREAS, the Plan was last amended on December 6, 2023; WHEREAS, on April 18, 2023, the TIRZ #2 Board took action recommending the allocation of $150,950,000 in future revenue to specified projects including water and wastewater infrastructure, parks, mobility projects, developer reimbursement, and administration costs, as laid out in the attached Plan; WHEREAS, Texas Tax Code Section 311.007 provides that the governing body of the municipality that designated the zone may change the boundaries or the term of the Zone by ordinance; and WHEREAS, following notice in accordance with Chapter 311 of the Texas Tax Code, a public hearing for this ordinance was held during the City Council meeting, which began on September 5, 2023, at 11:30 a.m.; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL FOR THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council approves the amendments to the Revised Project and Financing Plans for the Reinvestment Zone Number Two, City of Corpus Christi, Texas ("the Plan") for the Reinvestment Zone Number Two, Corpus Christi, Texas, as approved by the Board of Directors of Reinvestment Zone Number Two on May 16, 2023, regarding the allocation of $150,950,000 in future revenue to specified projects including water and wastewater infrastructure, parks, mobility projects, developer reimbursement, and administration costs as laid out in the Plan. A copy of the Plan is attached hereto and incorporated. 033160 SCANNED That the foregoing ordinance was read for the first time and passed to its second reading on this the go day of Paulette Guajardo Roland Barrera Sylvia Campos Gil Hernandez Mi Duel Hunter A-cik A* - 1/41-t.A.,5A7 , 2023, by the following vote: Al//( Jim Klein Mike Pusley Everett Roy D n Suckley k That the foregoing ordinance was read for the second time and passed finally on this the 5-‘v\ day of jAQ. fpr , 2023, by the following vote: 1, Paulette Guajardo Roland Barrera Sylvia Campos Gil Hernandez Michael Hunter AL„,Q44-0' PASSED AND APPROVED on this the 6' day of ATTEST: -Ef--OteleldIAK Rebecca Huerta Paulette Guajardo City Secretary Mayor Jim Klein Mike Pusley Everett Roy Dan Suckley , 2023. TAX INCREMENT REINVESTMENT ZONE #2 CITY OF CORPUS CHRISTI PROJECT AND FINANCING PLANS (Revised 09/29/2009; Amended 03/22/2011; 09/13/2011; 10/29/2013, July 22, 2014, February 28, 2017, August 22, 2017, December 19, 2017, January 22, 2019, December 12, 2019, and December 6, 2022, and August 29, 2023) The Tax Increment Reinvestment Zone #2 Project Plan) (Plan) (last revised and/or amended on 12/6/19) is amended to update and revise the Plan this 29th Day of August of 2023 by adding the bold and underlined text as shown: REINVESTMENT ZONE PROJECT PLAN This Project Plan identifies the improvements and planned expenditures that may be funded by tax increments generated within Tax Increment Reinvestment Zone #2, City of Corpus Christi ("TIRZ #2). No tax increments for new expenditures authorized by this Project Plan may be expended if the tax increments are required to fund any obligations incurred by the North Padre Island Development Corporation prior to the date of the adoption and approval of this Project Plan. On March 21, 2000, the Corpus Christi City Council authorized the preparation of a preliminary financing plan for a tax increment financing district covering portions of North Padre Island and Mustang Island. This tax increment financing would be used primarily to provide the local share of the North Padre Island Storm Damage Reduction and Environmental Restoration Project ("Packery Channel project"). Then on June 27, 2000, the City Council approved the preliminary Project and Financing Plans, and notified other taxing jurisdictions of its intention to create a tax increment reinvestment zone. A notice of a public hearing on the creation of the zone was published on August 22, 2000, and the public hearing was held on August 29, 2000. On August 29, 2000 the City Council passed the first reading of the ordinance that established TIRZ #2. Ordinance 024270, which established TIRZ #2 was formally adopted after being passed on the second reading on November 14, 2000. Subsequently on October 8, 2002, the City Council approved Resolution 025040, which established the North Padre Island Development Corporation ("NPIDC"). The NPIDC was created to aid, assist, and act on behalf of the City and TIRZ #2 in performing governmental functions to promote the common good and general welfare of the City, including the area within the TIRZ #2 zone. Then on February 25, 2003, the NPIDC, TIRZ #2, and City Council authorized an agreement by and among the City of Corpus Christi, Texas; Reinvestment Zone Number Two, City of Corpus Christi; and the North Padre Island Development Corporation, dated February 1, 2003. This agreement commonly referred to as the "Tri -Party Agreement" spells out the responsibilities of each of the parties in the administration and financing of TIRZ #2. The three entities also recommended, authorized, and approved the Project and Financing Plans for TIRZ #2 on February 25, 2003. The initial Project Plan and Financing Plan basically addressed the funding of the City's share of the North Padre Island Storm Damage Reduction and Environmental Restoration Project. The Packery Channel project had been discussed and studied over a number of years. The project involved the placement of sand in front of the concrete Padre Island Seawall to restore the beach and protect the seawall. The sand was to be taken from the dredging and channelization of a reopened Packery Channel. The Packery Channel project also consisted of long jetties, walks, mitigation, public facilities, and reserve for Tong -term maintenance. The estimated cost of the Packery Channel project was approximately $30 million. Packery Channel Project Plan Amendment Page 1 of 10 The Packery Channel project was included in Section 556 of the Water Resources Development Act of 1999. The Act also required the U. S. Army Corps of Engineers (USACOE) to undertake two studies: (1) to determine if the project is environmentally acceptable and (2) to determine if the project is technically sound. A relatively small amount of money was made available by the Federal government for the studies. The local share of the project, which was estimated at approximately $10.5 million, could come from tax increment financing. This type of financing was authorized by a State Constitutional Amendment. The basic theory of tax increment financing is that "the construction of certain public improvements will generate higher tax revenues due to additional private development." The concept of tax increment financing is "but for the construction of the public improvements, the higher tax receipts would not occur." In this particular case, the City believed that completion of the project would result in significantly increased taxes through both new private investment and increases in the existing tax values. The preliminary financing plan that was adopted by the City Council, when it authorized the creation of TIRZ #2, called for funding $10.5 million as the City's share of the Packery Channel project, plus $750,000 for construction of the parking lot on the Padre Island concrete seawall. The estimates in the preliminary financing plan were refined, and the Project and Financing Plans, dated February 1, 2003, estimated that $12,000,000 in debt would be needed to complete the initial project costs. The plans identified $3,000,000 in surplus tax increments or bonds for secondary development improvements, which included the construction of seawall parking lot and $2,000,000 for a "parks & recreation center." A copy of the projected project costs from the 2003 plans is attached to and incorporated into this plan as Exhibit A. A project consisting of the construction of two bridges on Park Road 22 is added in the February 28, 2017 amendment. A project consisting of the traffic improvements on Windward Drive at Saint Augustine Drive is added in the August 21, 2018 amendment. Additionally, as part of this amendment a project is added for a market and feasibility study for the renewal of TIRZ #2 beyond 2022. With the extension of the TIRZ #2 beyond 2022, the following projects are added: 1. Continued maintenance of the Packery Channel from January 1, 2023 to December 31, 2042 will be included as an eligible project up to the amount of $36,400,000. 2. Improvements to R. Briscoe King Pavilion up to $2,000,000$4,000,000. 3. Public Infrastructure improvements related to the Whitecap PID development up to $11,500,000. 4. Development of a multi -mobility plan for the TIRZ #2 up to $150,000. Under §311.011(b)(1), Texas Tax Code, the Project Plan must have a map showing existing uses and conditions of real property in the zone, and a map showing proposed improvements to and proposed uses of that property. A map of TIRZ #2 is attached as Exhibit B, and is incorporated into this plan. A map of the current land uses within TIRZ #2 and the surrounding area is attached as Exhibit C, and is incorporated into this plan. A map of the current zoning within TIRZ #2 and the surrounding area is attached as Exhibit D, and is incorporated into this plan. A map of the future land uses within TIRZ #2 and the surrounding area based on the City Comprehensive Plan's Future Land Use Plan, adopted May 24, 2004 (Ordinance 026278), is attached as Exhibit E, and is incorporated into this plan. The Island Action Group Capital Improvement Priorities Report, dated 10/14/2005, which identifies needed capital improvements on Mustang and Padre Islands, Packery Channel Project Plan Amendment Page 2 of 10 including the areas within TIRZ #2, has been reviewed to identify improvements that could be funded through the tax increments developed within TIRZ #2. Exhibit F is a map showing specific projects that are included in this Project Plan. That exhibit is incorporated into this plan. This exhibit has been updated to include the location of the Mobi-Mats and traffic improvements on Windward at Saint Augustine Drive. All of the specific projects are situated on public land and involve recreational use and activities. Due to damage caused by Hurricane Harvey, a Packery Channel revetment repair project is needed. Under §311.011(b)(2), Texas Tax Code, the Project Plan must address proposed changes of zoning ordinances, the master plan of the municipality, building codes, other municipal ordinances, and subdivision rules and regulations, if any, of the county, if applicable. While the City is in the process of adopting a unified development code that will replace the current zoning and platting ordinances, there are no substantive changes being recommended that would affect TIRZ #2. At the time of adoption of this Project Plan, there are no pending cases to rezone properties within TIRZ #2. The City is considering rezoning portions of the property that it leases from the Texas General Land Office ("GLO"). As a condition of the GLO lease, the City is required to prepare a development plan for any commercial development on the leased property. While a draft Packery Channel development plan has been prepared and presented to the City Council, Planning Commission, GLO, Nueces County Parks Board, Nueces County Dune Committee, and City Beach Advisory Committee, for incorporation into the Mustang Padre Island Area Development Plan, the City Council has not officially adopted the plan, and the City is discussing features of the proposed plan with the GLO. The City will propose rezoning to match the needs identified in the Packery Channel development plan. The City is working with GLO on the voter approved proposed changes to Chapter 10, Code of Ordinances, which contains the City's GLO approved beach and dune rules. This proposed change addresses driving on the beach seaward of the concrete Padre Island seawall, and the installation of bollards on the beach seaward of the concrete seawall and between the seawall and southern Packery Channel jetty. There are no other proposed changes to the City's beach or dune permitting rules. However, the Nueces County Beach Management Committee has recommended approval of the changes to their beach management regulations. The Nueces County Commissioners' Court has not approved the changes, and they have not been sent to the GLO for public comment in Texas Register. Under §311.011(b)(3), Texas Tax Code, the Project Plan must contain a list of estimated nonproject costs. The City has been trying to obtain additional Federal funding to cover some of the costs of the recreational enhancements within the North Padre Island Storm Damage Reduction and Environmental Restoration Project and repairs to storm damage from Hurricane Ike. The City will also seek grants and other funding opportunities from the State of Texas and others to offset some of the costs identified in this Project Plan. The level of that funding, if any, that can come from Federal, State, or other funding sources is not known. To the extent Federal, State, or other funding is received, the amount of tax increments that need to be dedicated to completing these improvements will be reduced. Under §311.011(b)(4), Texas Tax Code, the Project Plan must contain a statement of a method of relocating persons to be displaced as a result of implementing the plan. None of the proposed improvements should result in relocation of any person; therefore this requirement is not applicable to the implementation of this plan. Packery Channel Project Plan Amendment Page 3 of 10 REINVESTMENT ZONE FINANCING PLAN Under §311.011(c)(1), the Reinvestment Zone Financing Plan must contain an Estimated Project Cost Description, and under §311.011(c)(2), it must describe the Kind, Number, and Location of TIRZ Improvements. Under this Revised Project Plan and Reinvestment Zone Financing Plan, the following improvements and activities may be funded from current available revenues: Packery Channel Project Area Improvements: Subject to the availability of the estimated funds in the TIRZ #2 tax increment fund and funding from the Federal Government as authorized by the Water Resources Development Act, construction of the improvements in the TIRZ#2 referendum voter information sheet and Phases 3 — 7 Packery Channel public recreational improvements and amenities shown on the engineering drawings referred to as the Packery Channel "Six Pack," which is incorporated into this Project Plan as Exhibit G. Exhibit H has been amended to reflect all TIRZ #2 Project_Updates and includes estimates and details regarding the Packery Channel revetment reimbursement project and the traffic improvements on Windward at Saint Augustine Drive. Additionally, an estimated $50,000 will be budgeted for the market and feasibility study for the renewal of the TIRZ #2 beyond 2022. Construction of the Phase 4 ADA ramps is contingent upon approval of the General Land Office of the installation of temporary hard parking surfaces for parking for the disabled on the beach at the end of the ADA ramps and will be constructed with Phase 3 if approved. Yearly Miscellaneous Improvements, including for the additional years until expiration on December 31, 2042, required for support of Packery Channel, exclusive of the previously identified capital projects Phases 3 though 7, could include periodic surveys of channel conditions, shoreline, and jetty revetments, access to beach and sand redistribution are proposed to be budgeted on an annual basis pending the availability of funds. These Yearly Miscellaneous Improvements specifically include routing, monitoring, and surveys of the Packery Channel and the Gulf beach. Operation of a marine patrol to reduce shoreline erosion along Packery Channel, specifically along the Mollie Beattie Preserve pending the availability of funds. 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. Costs for design, permitting and dredging of Packery Channel have been included in future years subject to need and pending the availability of funds. The Zone's annual budget will be adopted by the Zone's Board of Directors on an annual basis, based upon the City of Corpus Christi's fiscal year, and attached to this plan as Exhibit I. Improvements in other areas within TIRZ #2: Packery Channel Project Plan Amendment Page 4 of 10 A specific list of projects will be developed in consultation with various organizations and interested residents of North Padre Island and businesses located within TIRZ#2. These projects may include projects to acquire, construct, reconstruct, or install public works, facilities, or sites or other public improvements, including landscaping, utilities, streets, street lights, water and sewer facilities, pedestrian malls and walkways, parks, flood and drainage facilities, or parking facilities, but not including educational facilities. One improvement to the TIRZ #2 is the construction of two bridges on Park Road 22 between Commodores and Whitecap. The bridges will require up to $4,000,000 of TIRZ #2 funding and will allow for travel over canals that are to be built by a third party developer in the area. The funds for the Park Road 22 Bridge are to be held contingent on the completion of the canals and approval of the construction plans to proceed by the City and the City Council within 24 months after February 28, 2017. Other authorized improvements include up to X4,000,000 for improvements to R. Briscoe King Pavilion to upgrade its use as an area of public assembly that benefits the TIRZ #2 , up to $150,000 to create a multi -mobility plan for the TIRZ #2 that considers connectivity for golf carts and bicycles throughout the TIRZ #2 boundary, and up to $11,500,000 for public infrastructure related to the Whitecap PID project, specifically mobility bridges, a walking trail, and a water exchange, which will all be publicly accessible. The TIRZ #2 is allocating the funding received through the expansion and extension of the TIRZ in set amounts for future projects in each proposed category as provided below. Project Pro"ect Fundin • Allocations Water/Wastewater Infrastructure $38,950,000 Parks and Infrastructure Projects $54,800,000 Mobility Projects $17,300,000 Developer Reimbursement $37,900,000 Administration $2,000,000 Total Project Allocation $150,950,000 As required by §311.011(c)(3), an updated economic feasibility Study for TIRZ #2 was completed by CDS Market Research I Spillette Consulting in September 2009. It is provided in a separate document. Under §311.011(c)(4), the Project Plan and Reinvestment Zone Financing Plan must include an estimate of bonded indebtedness. TIRZ #2 may be used to support bonded debt issued to fund specific projects, or the project costs may be funded on a pay-as-you-go basis, or utilize other financing methods. Packery Channel Project Plan Amendment Page 5 of 10 Under §311.011(c)(5), the Project Plan and Reinvestment Zone Financing Plan must describe the timing of incurring costs or monetary obligations. TIRZ #2 project costs will be incurred over the life of the Zone based on its Board of Directors' identification of priority activities and projects, opportunities for implementation, and available revenues to sustain a pay-as-you-go project expenditure approach, a bonded debt issuance, or other forms of project financing. Under §311.011(c)(6), the Project Plan and Reinvestment Zone Financing Plan must describe the methods of financing and sources of revenue. TIRZ #2 could use several methods of financing, including but not limited to the following: • Cash funds generated from existing property value increment, • Bonded debt issuances backed by TIRZ #2 revenue to fund the associated debt service, • Short term anticipation notes or other debt issued by private financial institutions based on projected property tax increment to be generated from taxable development under construction at the time of debt issuance, and • Developer cash reimbursement agreements where the revenues from TIRZ #2 property tax increment compensate a developer for fronting eligible expenditures in a specific taxable project after the project is completed. The term of any debt for which debt services payments are to be funded by TIRZ #2 revenue will not extend past the duration of TIRZ #2. During the extension term, the primary source of revenue for TIRZ #2 will be funds from the contributed property tax collections of the City of Corpus Christi and Nueces County on the taxable property value increment within TIRZ #2. amount is as set out in the table below. The City's contribution Increment Tax Year(s) Percentage 100% 2022 through 2026 75% 2027 70% 2028 65% 2029 60% 2030 55% 2031 50% 2032 through 2041 The assessed value base year The assessed value base year for all participating taxing entities is 2000, except for the territory added in 2022 and 2023, for which the base year is 2022 or 2023 based upon the year it was added. Based upon 2042023 tax rates for each jurisdiction, the Packery Channel Project Plan Amendment Page 6 of 10 projection of incremental property tax revenue contributed to TIRZ #2 for the extension term is as follows: Sources of Revenue' Taxing Jurisdictions and Tax Rates City of Corpus Nueces Christi County Year 0.620261 .288228 Total 2023 2024 4,289,902 5,107,066 2025 2026 2027 2028 2029 2030 2031 2032 2033 6,137,871 8,149,043 1,490,235 1,775,030 2,134,282 10,395,819 12,528,995 14,732,792 16,217,804 2,835,208 5,780,138 6,882,096 8,272,154 10,984,251 3,618,246 14,014,065 4,070,913 16,599,908 4,445,785 19,178,577 4,517,842 20,735,646 17,010,576 17,592,792 17,981,325 2034 18,371,854 2035 18,594,536 4,343,970 4,084,338 4,174,612 4,265,349 4,317,088 21,354,546 21,677,130 22,155,937 22,637,203 22,911,624 2036 18,819,953 4,369,462 2037 19,048,140 4,442,480 2038 19,279,133 4,476,150 2039 19,512,968 2040 19,749,681 2041 19, 989, 309 2042 20,231,890 4,530,480 4,585,479 4,641,155 4,697,517 23,189,415 23,470,620 23,755,283 24,043,448 24,335,160 24,630,464 24,929,407 Total 303,741,450 77,795,624 381,537,074 ' Assumes 95% tax collection rate. These revenue projections assume a 95% tax collection rate for all taxing jurisdictions. According to these projections, during the extension term, 79.6% of the tax increment revenue will come from the City and 20.4% will come from the County. Packery Channel Project Plan Amendment Page 7 of 10 Zone property tax contributions from the participating tax jurisdictions could be supplemented with other sources of revenue as available. These could include but are not limited to: • Grants from other local, state, and federal agencies; • Grants from private entities such as foundations; and • Joint implementation and funding agreements with other public agencies or private entities such as civic associations for specific projects. Under §311.011(c)(7), the Project Plan and Reinvestment Zone Financing Plan must give the current appraised value of the zone. According to the Nueces County Appraisal District, the 2009 certified taxable appraised value for the Zone is $356,833,583 for the City of Corpus Christi, $ 353,059,772 for Nueces County and the County Hospital District, $ 358,753,875 for Del Mar College, and $ 352,808,877 for Farm to Market Road. Due to outstanding property accounts under value protest, these certified values will increase over time. Under §311.011(c)(8), the Project Plan and Reinvestment Zone Financing Plan must provide an estimate of the captured appraised value for TIRZ #2 during the years of its existence. The table on the next page provides the projected schedule of taxable value increment captured by the zone over remainder of its duration. Due to differences in policies regarding exemptions and tax abatements, the captured increment differs among the participating jurisdictions. Therefore, there is a table shown for each entity. Under §311.011(c)(9), the Project Plan and Reinvestment Zone Financing Plan must state the duration of TIRZ #2. The zone has four tax years remaining and will expire after 2022. Packery Channel Project Plan Amendment Page 8 of 10 Estimated Captured Appraised Value Project Assessed Value Taxing Jurisdictions and Tax Rates City of Corpus Nueces Christi County Year 0.620261 .288228 2023 813,900,689 2024 952,579,717 ------------------------------ ------ 2025 1,127,515,524 2026 I 1,468, 827,145 2027 1,850,122,676 2028 ` 2,212,139,318 811,531,683 950,210,710 1,125,146, 518 1,466,458,138 1,847,753,670 2,209,770,312 2029 2,586,141,039 2,583,772,033 2030 2,838,159,262 2,835,790,256 2031 1 2,972,698,756 2,970,329,750 2032 3,071,505,354 3,069,136,348 2033 3,137,442,542 3,135,073,534 2034 3,203,718,385 3,201,349,378 2035 3,241,509,211 3,239 140,204 2036 3,279,764,249 3,277,395,243 2037 3,318,489,438 3,316,120,432 2038 1 3,357,690,792 3,355,321,785 2039 3,397,374,406 j 3,395,005,399 2040 3,437,546,456 j 3,435,177,450 2021 3,478,213,202 3,475,844,196 2042 3,519,380,985 1 3,517,011,978 Packery Channel Project Plan Amendment Page 9 of 10 Assessed Value Increment Taxing Jurisdictions and Tax Rates Packery Channel Project Plan Amendment Page 10 of 10 City of Corpus Christi Nueces County Year 0.620261 .288228 2023 728,030,086 725,661,080 2024 866,709,114 864,340,107 2025 1,041,644,921 1,039,275,915 2026 1,382,956,542 1,380,587,535 2027 1,764,252,073 i 1,761,883,068 2028 2,126,268,715 2,123,899,709 2029 2,500,270,436 2,497,901,430 1 2030 _I 2,752,288,659 2,749,919,653 2031 2,886,828,153 2,884,459,147 i_ 2032 2,985,634,751 2,983,265,745 2033 3,051,571,939 3,049,202,933 2034 3,117,847,782 3,115,478,775 2035 3,155,638,608 3,153,269,601 2036 3,193,893,646 3,191,524,640 2037 3,232,618,835 3,230,249,829 2038 3,271,820,189 3,269,451,182 2039 3,311,503,803 3,309,134,796 2040 3,351,675,853 3,349,303,847 2021 3,392,342,599 3,389,973,593 2042 3,433,510,382 3,431,141,375 Packery Channel Project Plan Amendment Page 10 of 10 LIST OF EXHIBITS Exhibit A Packery Channel Project Costs and Funding from Project and Financing Plans dated February 1, 2003 Exhibit B Map of TIRZ #2 Exhibit C Current land use map Exhibit D Current zoning map Exhibit E Future land use map Exhibit F Project Plan Map (Rev'd 10/22/2013; last updated August 21, 2018) Exhibit G "Six Pack" engineering drawings Exhibit H Projects with Funds from Tax Increment Reinvestment Zone #2 City of Corpus Christi (Updated August 29, 2023) Exhibit I Fiscal Year 2019 Reinvestment Zone #2 Budget 2009 TIRZ #2 Economic Feasibility Study by CDS Market Research Spillete Consulting Packery Channel Project Plan Amendment Exhibit A 025215 ORDINANCE NO. AN ORDINANCE APPROVING AFINAL PROJECT AND FINANCING PLAN FOR TIIE "REINVESTMENT ZONE NUMBER TWO, CITY OF CORPUS CHRISTI, TEXAS"; APPROVING THE SALE OF BONDS BY NORTH PADRE ISLAND DEVELOPMENT CORPORATION IN FURTHERANCE OF THE FINAL PROJECT AND FINANCING PLAN; AND OTHER MATTERS RELATING THERETO. WHEREAS, on November 14, 2000, the City Council of the City adopted Ordinance No. 024270 (the "Creation Ordinance"), approving the creation of a tax increment reinvestment zone in the City known as "Reinvestment Zone Number Two, City of Corpus Christi, Texas" ('TIRZ Two"); and WHEREAS, in connection with the adoption of the Creation Ordinance and the establishment of TIRZ Two, the City prepared a preliminary reinvestment zone financing plan, and presented the preliminary reinvesluient zone financing plan to the governing body of each taxing unit that levies taxes on real property in the proposed reinvestment zone; and WHEREAS, in compliance with the provisions of Chapter 311, Texas Tax Code (the "Act"), a project plan and reinvestment zone financing plan has been prepared and approved by the Board of Directors of TIRZ Two, which project plan and reinvestment zone financing plan so approved is attached to this Ordinance as Exhibit "A" (the "Plan"); and WHEREAS, in compliance with the Act, the City Council finds it necessary and desirable to approve the Plan submitted with this Ordinance; and WHEREAS, by Resolution No. 025040, adopted on October 8, 2002, the City authorized the creation of the North Padre Island Development Corporation (the "Corporation") to aid, assist and act on behalf of the City in the performance of the City's governmental and proprietary functions with respect to the common good and general welfare of the City, as described in the Creation Ordinance; and Exhibit A WHEREAS, on February 25, 2003 theCorporation adopted a resolution authorizing the issuance and delivery of up to $3,000,000 in Tax Increment Contract Revenue Bonds, Series 2003 (the "Bonds"), for the purpose of funding a portion of the "project costs" as are set forth in the Plan; and WHEREAS, the Corporation and the Board of Directors of TIRZ Two have approved the execution and delivery of that certain Agreement by and among the City, TIRZ Two, and the Corporation dated as of February 1, 2003 (the "Tri -Party Agreement"), pursuant to which the Corporation was delegated certain power and authority in connection with the implementation of the Plan on behalf of TIRZ Two, including, but not limited to, the power to issue, sell or deliver its bonds, notes or other obligations in accordance with the terms of the Tri -Party Agreement; and WHEREAS, the City Council finds it necessary and advisable to adopt this Ordinance to approve the Plan, as required by the Act, to approve the Tri -Party Agreement, and the approve the resolution of the Corporation that authorized the issuance and delivery of the Bonds. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1; That the facts and recitations contained in the preamble of this Ordinance are hereby E found and declared to be true and correct. SECTION 2; That the City Council hereby approves the project plan and the reinvestment zone financing plan attached to this Ordinance as Exhibit "A", as required by Section 311.011 of the Act. SECTION 3; That the City Council does hereby find and declare that the project and financing plan submitted to the City Council for approval, and hereby approved by the adoption of this Ordinance, is feasible for the development of TIRZ Two and conform to the master plan of the City. 2 Exhibit A SECTION 4- That the City hereby approves the Resolution adopted by the Corporation, in substantially the form and substance as attached hereto as Exhibit "B", and all documents attached to the Resolution including, without limitation, the Tri -Party Agreement. The Mayor and the City Secretary are hereby authorized to execute, attest, seal and deliver the Tri -Party Agreement on behalf of the City. The issuance of Bonds in an amount not to exceed $3,000,000 for the purposes described in the Resolution is hereby approved. SECTION 5: That if any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance SECTION 6: This Ordinance shall be effective immediately from and after its passage in accordance with the provisions of Section 1201.028, Texas Government Code. SIGNED AND SEALED THIS 25TH DAY OF FEBRUARY, 2003. 7-,,,,,,fi-a,i),„ City Secretary APPROVED AS TO FORM: Actin Cit�Atto Mayor, City of Corpus Christi, Texas 3 (SEAL) Exhibit A THE STATE OF TEXAS COUNTY OF NUECES CITY OF CORPUS CHRISTI I, the undersigned, City Secretary of the City of Corpus Christi, Texas, do hereby certify that the above and foregoing is a true, full and correct copy of an Ordinance passed by the City Council of the City of Corpus Christi, Texas (and of the minutes pertaining thereto) on the 25th day of February, 2003, approving the project and financing plan for Reinvestment Zone Number Two, City of Corpus Christi, Texas, and other matters related thereto, which ordinance is duly of record in the minutes of said City Council, and said meeting was open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Texas Government Code, Chapter 551. EXECUTED UNDER MY HAND AND SEAL of said City, this the 25th day of February, 2003. (SEAL) City Secretary, City of Corpus Christi, Texas 4 Exhibit A CorpusChristi, Texas C7� ) Day of 2 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings: I/we, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Samuel L. Nea , Jr., Mayor City of Corpus Chris 1 Council Members The above ordinance was passed by the following vote: Samuel L. Neal, Jr. Brent Chesney Javier D. Colmenero Henry Garrett Bill Kelly Rex A. Kinnison John Longoria Jesse Noyola Mark Scott aii06x)(0- C6034-aLru, 110 2b215 Exhibit A Reinvestment Zone Number Two City of Corpus Christi,Texas Project Plan and Reinvestment Zone Financing Plan February 25, 2003 Exhibit A Exhibit A Reinvestment Zone Number Two, City of Corpus Christi, Texas February 25, 2003 Project Plan and Reinvestment Zone Financing Plan Introduction to The Project and Finance Plan General Background As required under the Tax Increment Financing Act, Chapter 311, Texas Tax Code (the "TIF Act"), the Board of Directors (the "Zone Board") of Reinvestment Zone Number Two, City of Corpus Christi, Texas (the "Zone"), has prepared this Project Plan and Reinvestment Zone Financing Plan (the "Plan"). The City Couna'l ofthe City of Corpus Christi, Texas (the "City") and the Zone Board must both adopt this Plan. The Plan includes information concerning proposed land uses and development, estimated project and non -project costs and administrative expenses, engineering studies, proposed financing and economic feasibility data, and property appraisal data. The Plan includes financing of the Zone's portion of the North Padre Island Storm Damage Reduction and Environmental Restoration Project (the "Project"). This Plan sets out the details of the tax and economic benefits derived from development of the Project Site, the scope of the Project, and the financing strategy for funding of Project costs through the issuance of bonds. Complete copies of the Plan, including a report attached to this Plan, as Exhibit A, entitled "Forecast of Potential TIF Revenue Flows on North Padre Island", prepared by Economics Research Associates ("ERA "), which constitutes the economic feasibility study required by the TIF Act, are available from the City of Corpus Christi, Texas, 1201 Leopard Street, Corpus Christi, Texas 78401, Attention: City Secretary. North Padre Island Storm Damage Reduction and Environmental Restoration Project The Project is a project of the U.S. Army Corps of Engineers (the "Corps") to dredge and channelize a reopened waterway ("Packery Channel") between the Laguna Madre Intracoastal Waterway and the Gulf of Mexico. In addition to the Packery Channel, the Project includes construction by the Corps of two 1,400 foot jetties paralleling the Packery Channel. Of the total 830,000,000 projected cost of the Project, the City as Project sponsor has agreed to pay $10.5 million. The remaining Project costs are to be paid by the United States Government. The City has created the Zone for the purpose of raising funds needed to provide the Zone Project costs through the issuance of bonds by the North Padre Island Development Corporation (the "Issuer"), a not-for- profit local government corporation. It was established by the City under the provisions of Chapter 431, Texas Transportation Code, and the general laws of the State of Texas to aid, assist, and act on behalf of the City in the performance of the City's governmental functions and to provide a means of financing certain Project costs in connection with the Zone. The Corps was directed by the Congress of the United States ("Congress") to carry out a project for ecosystem restoration and storm damage reduction at North Padre Island. The Project will extend the existing approximately 2.6 miles portion of the Packery Channel an additional 0.9 mile. The Project is described in the Environmental Impact Statement (EIS), as are the benefits and impacts to be expected from the Project. Erosion of the beach in front of the seawall just south of the boundary between Mustang and North Padre Islands is causing a loss of recreational beach. Dredging Packery Channel would provide sand for nourishment of the beach, and an enlarged beach would reduce potential future storm damage. A Project Study Plan, prepared by the Corps in 1999, examined three alternative sites, including Packery Channel. Three different channel widths under three different salinity regimes were also examined to determine the environmental benefits of an opening between the Laguna Madre and the Gulf of Mexico. The environmental 1 Exhibit A benefits of all alternatives were essentially negligible. The final EIS will be available upon publication by the Corps from the City of Corpus Christi, Texas, 1201 Leopard Street, Corpus Christi, Texas 78401, Attention: City Secretary. The Project is a project for ecosystem restoration and storm damage reduction consisting of a jettied entrance channel, main channel dredged to a required depth of 14 feet and a bottom width of 116 feet up to the Texas Highway 361 bridge, scour protection for the existing bridge, concrete bulkheads on both sides of the main channel creating three placement areas to create shallow water habitat, continuing with a smaller channel along the existing alignment of Packery Channel from the highway bridge to the Gulfs Waterway, dredged to a required depth of 7 feet and bottom width of 80 feet, installation of a 30 inch HDDPE pipe for a sand bypass system, beach nourishment on the beach south of the channel and miscellaneous utility removals and relocations. The Project consists of dredging a 134 -foot wide channel to connect the existing Packery Channel to the Gulf of Mexico to a 12 -foot deep authorized depth (requiring an initial dredge depth to -14 feet) and dredging the existing channel to a depth of -7 feet (mean sea level) and a width of 80 -feet. The total length of the proposed channel from the Gulf end of the jetties to the Gulf Intracoastal Waterway is approximately 18,500 feet (3.5 miles). Approximately 801,200 cubic yards (cy) of material will be dredged during construction, most of which (646,000 cy) will be placed on the beach south of the proposed jetties placement arca (PA -4S) for storm damage reduction in front of the existing concrete seawall. Sandy maintenance material from the channel east of the SH 361 bridge will be used for beach nourishment, and a sand bypass system will be designed to move accumulated sand from longshore drift to the downdrift side of the jetties. Approximately 15,000 cy of estimated maintenance dredging every five years will be placed in an upland site. The Project is to be constructed by the Corps under a proposed Project Cooperation Agreement between The Department of the Army and the City (the "Project Contract"). The Project Contract has not been approved by either the Corps or the City, but the City expects execution of the Project Contract by both parties by Spring 2003. The Plan calls for the remainder of the approximately $19.5 million needed to complete the Project to be funded by the United States Government under the Project Contract. As of February 25, 2003, Congress has appropriated $4.0 million for Project construction, but is under no obligation to appropriate the remainder of its share of Project costs. Once the initial Project is completed, the City will incur costs of maintenance dredging of Packery Channel, as described above. It is anticipated that upon completion of the initial Project, the estimated maintenance dredging will commence in 2008, and the estimated cost of such maintenance dredging in that year will approximate $3 50,000. The costs of the maintenance dredging are intended to be paid by the Zone, either from tax increment collections, proceeds from bonds, a combination of those two sources, or other moneys made available to the City or the Zone for such purpose. Secondary development within the Zone that includes public improvements is being proposed by the City as local sponsor. Secondary development includes proposed park amenities that encompass approximately 14.2 acres providing access to Packery Channel, the beach, and the jetties; passenger and recreational vehicle parking; walkways; restrooms; and vendor facilities. The location of two potential City park areas is proposed along the area nearest the Gulf of Mexico reach of Packery Channel. The Project, the maintenance dredging of the Packery Channel, and the public improvements associated withthe proposed secondary development are found to be "Project Costs" as such term is defined in the TIF Act. The Project Contract The Project is to be constructed by the Corps under the Project Contract. The Project Contract has not been approved by either the Corps or the City, but the City expects execution of the Contract by both parties by Spring 2003. Under the Project Contract, the Corps, subject to receiving funds appropriated by Congress and using the 2 Exhibit A funds expected to be provided by the City through the Issuer, would agree to expeditiously construct the Project. The Project Contract recognizes that Congressional appropriations to date are less than the amount of federal funds required for completion of the Project, and that in the event insufficient funds are appropriated for the federal government's share of Project costs, then Project construction will be suspended or the Project Contract terminated. The federal government expressly makes no commitment to seek additional federal funds for the Project. The City would agree to contribute 35% of the total Project costs, at least five percent of which must be contributed in cash with the remainder being the appraised value of cash or lands, easements, rights-of-way, and suitable burrow and dredged or excavated material disposal areas. The City must deposit its share of projected financial obligations for construction through the first fiscal year of construction within 45 days of notice from the Corps. For each subsequent year, the deposit must be made no later than 60 days prior to the beginning of the fiscal year. The Project Contract obligates the City to operate, maintain, repair, replace, and rehabilitate the entire Project at no cost to the federal government. The City is seeking transfer of a portion of the maintenance cost to the Corps, but at this time no provision has been made for payment of ongoing maintenance costs. Funding of a maintenance reserve from proceeds of an additional series of Tax Increment Contract Revenue Bonds is contemplated by this Plan, but there is no assurance that a maintenance reserve will be funded, nor is there any guarantee that if funded the maintenance reserve would be adequate to pay costs of ongoing maintenance dredging. Reinvestment Zone Number Two, City of Corpus Christi, Texas The Zone was created by the City pursuant to the TIF Act to facilitate development of the land within the boundaries of the Zone, a 1,947.01 -acre parcel located entirely within the City and the County. The Zone became effective on November 14, 2000, and will terminate on December 3 I, 2022, or at an earlier time designated by subsequent ordins ncP of the City, or at such earlier time that all Zone Project Costs, tax increment bonds, and the interest on all tax increment bonds, have been paid in full (the duration of the Zone). The Zone is located on Padre Island, and intersected by State Highway 361 and Park Road 22 leading from the John F. Kennedy Causeway. A map showing the existing uses and conditions areal property in the Zone is attached to this Plan as Exhibit B. A map showing the proposed improvements to and proposed uses of the real property in the Zone is attached to this Plan as Exhibit C. Pursuant to the TIF Act, the ordinance of the City establishing the Zone also established a Board for the Zone. The Zone Board consists of 12 persons, with one member from each Participant other than the City, and the remainder (but not less than 10) appointed by the City. Name Samuel L. Neal Javier D. Colmenero Brent Chesney Rex Kinnison John Longoria Jesse Noyola Mark Scott Gabriel Rivas Cal Jennings Richard Pittman John LaRue Position President Vice President Member Member Member Member Member Member Member Member Member Member 3 Appointed By City of Corpus Christi Nueces County City of Corpus Christi City of Corpus Christi City of Corpus Christi City of Corpus Christi City of Corpus Christi City of Corpus Christi Del Mar College Nueces County Hospital District Flour Bluff Independent School District Port of Corpus Christi Authority Exhibit A Existing Land Use Existing land -uses within the Zone consist of light commercial development, mixed residential development, vacant unimproved land, and non -developable land, including waterways, roadways and parks. The City has estimated the following current usage within the Zone: Use Acres Vacant 857.1718 Water Area 447.8253 Park 384.5719 Right -of -Way 158.2465 Commercial 33.6232 Medium Density Residential 34.4813 Public/Semi-Public 9.0187 High Density Residential 7.7001 Professional Office 6.0570 Light Industrial 6.5105 Low Density Residential 1.8075 Total 1.947.0138 Infrastructure Requirements for Development It is the City's policy that infrastructure required for new development within the Zone will be the responsibility of each Landowner or developer, similar to any other development that occurs in the City. The wastewater treatment plant and trunk main collection system is in place and is of sufficient capacity to accommodate new development, and sufficient freshwater supply is available to serve anticipated development within the Zone. There are generally roads and streets throughout the Zone, though individual tracts may require additional street construction, sewer collection lines, or water supply lines for development. The City pays for oversize and extra depth costs associated with water and wastewater extensions that are designed to service property outside or beyond the owner's development. The City participates in street development to pay the additional costs for extra width associated with arterial streets or collectors that are designed to be extended beyond the developer's property. The City also pays for the costs of bridges and culverts to extend streets beyond the developer's property. Undeveloped Land Within the Zone Approximately 857 acres within the Zone are unimproved or underdeveloped land. The City anticipates that such unimproved land will be developed for residential and light commercial use consistent within existing uses, and additional development must occur before the Issuer can provide for the payment of additional Tax Increment Contract Revenue Bonds (hereinafter defined) required for completion of the Project without adversely affecting the Issuer's ability to pay debt service on the Series 2003 Bonds (hereinafter defined). No represo Cation is made in this Plan with respect to the ultimate development of such property. Project Costs A detailed listing of the proposed public works and public improvements to be undertaken in the Zone, shown by kind, number and location, and the Project costs of the Zone, including, without limitation, the costs of the initial dredging of Packery Channel, the maintenance dredging costs, secondary Project costs, administrative costs of the Zone, and other non -project costs (such as water supply improvements and roads that are not intended to be funded through the operation of the Zone), are set forth in Exhibit D. The estimated amount of bonded 4 Exhibit A indebtedness to be incurred to pay initial Project costs, and the timing of when related costs and monetary obligations for implementing this Plan are to be incurred, are set forth in Exhibit D. The City currently esti that the total amount of Issuer debt necessary to be issued for completion of initial Project costs will not exceed $12,000,000. Secondary development improvements are to be financed as funding becomes available from surplus tax increments or bonds. The City currently estimates the total amount of Issuer debt that may be issued for secondary developments will not exceed $3,000,000. The Plan of Finance The City has created the Zone for the purpose of raising funds needed to provide the City's share of the Project costs, and the Series 2003 Bonds (hereinafter defined) are the first installment of Issuer bonds to be issued for that purpose. The City, the County, Del Mar College, a junior college district and political subdivision of the State of Texas (the "College") and Nueces County Hospital District, a hospital district and political subdivision of the State of Texas (the "Hospital District") each have agreed to deposit to the Tax Increment Fund established for the Zone (the "Tax Increment Fund") certain tax collections arising from their respective taxation of the increase, if any, in the appraised value of real property located in the Zone since November 14, 2000 (hereinafter defined as the (Dedicated Tax Increments"), through the earlier of December 31, 2022, or the date on which any outstanding obligations payable from the Dedicated Tax Increments are finally paid. The City has entered into separate interlocal agreements (the "Interlocal Agreements") with the County, the College, and the Hospital District which sets forth, among other things, the agreement of the City and County, College, or Hospital District, as applicable, to pay to the Issuer the Dedicated Tax Increments (the "Contract Tax Increments"). The bonds to be issued to fund Project costs are to be payable solely from the Contract Tax Increments and certain other funds on deposit with JPMorgan Chase Bank, Houston, Texas (the "Trustee") or which may be deposited with the Trustee in the future together with earnings and investments thereon (the "Pledged Revenues"). The City, the County, the College, and the Hospital District (each referred to individually herein as a "Participant" and collectively referred to as the "Participants") have agreed to deposit to the Tax Increment Fund the Dedicated Tax Increments, as described herein. Pursuant to the TIF Act, a taxing unit's tax increment for a year (a "Tax Increment") is the amount of property taxes levied by the unit for that year on the "captured" appraised value of real property taxable by the unit and located in a reinvestment zone. Tax Increments do not result from any increase in the appraised value of personal property (such as equipment or inventory) taxable by the unit and located in a reinvestment zone. The TIF Act defines captured appraised value ("Captured Appraised Value") as the total appraised value of all real property taxable by the unit and located in a reinvestment zone less the tax increment base of the unit. The tax increment base of a taxing unit (the "Tax Increment Base") is the total appraised value of all real property taxable by the unit and located in a reinvestment zone for the year in which the zone was designated. In the case of the Zone, the Tax Increment Base is the total appraised value of all real property in the Zone taxable by the relevant Participants as of January 1, 2000. Tax Increments result only from Captured Appraised Value in the Zone, which consists of 1,947.0138 acres, approximately 542.8184 of which is publicly owned and not taxable. Exhibit A shows (a) the Tax Increment Base of the Zone, (b) the current (as of the date of this Plan) total appraised value of taxable real property in the Zone and (c) the estimated captured appraised value of the Zone during each year of its scheduled existence. Pursuant to separate interlocal Agreements between the City and each of the County, the College, and the Hospital District, respectively (the "Interlocal Agreements") the Participants have agreed to deposit all or a portion of their Tax Increments to the Tax Increment Fund. The City, the County, and the Hospital District have agreed to deposit to the Tax Increment Fund 100% of their tax collections on Captured Appraised Value in the 5 Exhibit A Zone for each tax year that the Zone remains in existence, commencing in tax year 2000. The College has agreed to deposit to the Tax Increment Fund 100% of the its Tax Increments for the first five years (2000-2004) of the Interlocal Agreement, 80% for the sixth year (2005), 60% for the seventh year (2006), 40% for the eighth year (2007), 20% for the ninth year (2008), and none thereafter. The amounts the Participants have agreed to deposit to the Tax Increment Fund are referred to herein as the "Dedicated Tax Increments." The obligations of the Participants to pay Dedicated Tax Increments into the Tax Increment Fund are subject to the rights of any of the holders of bonds, notes or other obligations that have been or are hereafter issued by a Participant that are payable from and secured by a general levy of ad valorem taxes throughout the taxing jurisdiction of that Participant. North Padre Island Development Corporation The Issuer The Issuer is a not-for-profit local government corporation and was established by the City under the provisions of Chapter 431, Texas Transportation Code, and the general laws of the State of Texas to aid, assist, and act on behalf of the City in the performance of the City's governmental functions and to provide a means of financing certain Project costs in connection with the Zone. It is governed by a Board of Directors, whose members are appointed by the City Council. On December 17, 2002, the City Council of the City appointed all of the members of the City Council to serve as members of the Corporation. The Bonds It is anticipated that three series of bonds will be issued by the Issuer to finance the initial costs of the Project. The first series of bonds is anticipated to be issued in the spring of 2003 (the "Series 2003 Bonds"), in connection with the implementation of this Plan. Should bonds be issued to fund the costs of maintenance dredging, it is anticipated that funds for such use would be included in the third series of bonds to be issued. The Series 2003 Bonds are the first issue of bonds (the "Tax Increment Contract Revenue Bonds") to be issued by the Issuer, The Tax Increment Contract Revenue Bonds, including the Series 2003 Bonds, are secured by fle Issuer's pledge of payments to be received pursuant to a Tri -Party Agreement among the City, the Zone, and the Issuer (the "Tri -Party Agreement"). Under that agreement, the Contract Tax Increments will be paid into the Tax Increment Fund at the City's depository. The Bonds will fund a portion of the City's share of the Project Costs. Completion of the Project will require additional funding, which currently is anticipated to be provided through the issuance of additional bonds by the Issuer secured from Dedicated Tax Increments on parity with the Bonds. Secondary development improvements may also be financed from additional bonds. For the Issuer to be able to repay such additional bonds, substantial growth in the taxable values within the Zone must occur, and there is no guarantee that such growth will have been accomplished prior to the timing of funding the remaining phases of the development and cornpletion of the Project. Growth in taxable values within the Zone is dependent on future development of additional taxable improvements. While the City expects that such additional improvements will be constructed if the Packery Channel is completed, there are approximately 1,838 tracts of land within the Zone owned by approximately 1,054 different owners, and neither the Issuer nor the City has any agreement with any landowner for construction of improvements within the Zone, or knowledge that any landowners intend to construct additional improvements. Without future development within the Zone, there can be no guarantee of additional Dedicated Tax Increments sufficient to pay debt service on bonds issued to finance the Project. A projection of the Project costs to be funded with bond proceeds and the sizing of the bond issues to fund those Project costs is set forth in Exhibit D. The Tri -Party Agreement 6 Exhibit A The City, the Zone and the Issuer will enter into the Tri -Party Agreement Pursuant to the Tri -Party Agreement, the Issuer will provide certain management and administrative services for the Zone. The Issuer is authorized to issue bonds or enter into other obligations to be repaid from Contract Tax Increments but only with the approval of the City Council. The Issuer agrees to use all Contract Tax Increments in a manner consistent with the Plan. The Tri -Party Agreement provides for duties and responsibilities of the City with respect to Dedicated Tax Increments and provides for duties and responsibilities of the Zone with respect to Dedicated Tax Increments. The Dedicated Tax Increments are to be deposited when received into the Tax Increment Fund. The City and the Zone will covenant and agree that they will continuously collect the Dedicated Tax Increments from the Participants in the manner and to the maximum extent permitted by applicable law. To the extent the City and Zone may legally do so, they also will covenant and agree that they will not permit a reduction in the Dedicated Tax Increments paid by the Participants. The City will covenant and agree to annually levy, assess and collect its ad valorem taxes in the Zone. The City and the Zone will agree to pay to the Issuer the Contract Tax Increments in consideration for the Issuer funding certain of the Project costs with the proceeds of the Tax Increment Contract Revenue Bonds. The obligations of the City and the Zone to pay Contract Tax Increments shall be subject to the Tri -Party Agreement and the rights of any of the holders of bonds, notes or other obligations that have been or are hereafter issued by the City, the County, the College, or the Hospital District that are payable from and secured by a general levy of ad valorem taxes throughout the taxing jurisdiction of the City, County, College, or Hospital District. It is anticipated that the interests of the Issuer in the Tri -Party Agreement will be assigned to the Trustee for the Tax Increment Contract Revenue Bonds under the terms of the Indenture pursuant to which such Tax Increment Contract Revenue Bonds are to be issued. The Tri -Party Agreement may be amended with the mutual consent of the parties; however, any amendment must be accompanied by an opinion of counsel to the Issuer to the effect that such amendment will not materially impair the rights of the owners of the Issuer's bonds or other outstanding obligations. 7 Exhibit A Reinvestment Zone Number Two City of Corpus Christi, Texas ERHIIBIT A Forecast of Potential TIF Revenue Flows on North Padre bland (Final Report) Dated: August 2002 ERA Project Number. 14663 Exhibit A Final Report Forecast of Potential TIF Revenue Flows on North Padre Island Submitted to: The City of Corpus Christi August 2002 ERA Project Number: 14663 Exhibit A TABLE OF CONTENTS ECM General Limiting Conditions iv Introduction 1 Approach 2 Participating Jurisdictions 3 Methodology 3 TIF REVENUE ANALYSIS 5 Summary 5 Real Estate Market Discussion 5 TIF Waterfront Properties 2002 6 Growth Rates 10 Padre Island 10 TIF Revenue Conclusions 11 Exhibit A ERA List of Tables and Exhibits Table 1. Taxable Value of Land & Improvement, 2 TIF District - 2000 2 Table 2. Tax Rates for Participating Jurisdictions 3 Table 3. Waterfront Properties by Location and Value within the TIF District 6 Table 4. Average Assessed Land Value by Location 7 Table 5. Average Condominium Assessed Value by Water frontage 8 Table 6. Condominium Properties in the TIF District 8 Table 7. Lake Padre Properties by Tax ID 9 Table 8. Other Non -Exempt Water Front Properties 9 Table 9. Exempt Properties 10 Table 10. Padre Island Growth Rates by Location - 1992-2002 10 Table 11. Scenario 1. TIF District Taxable Value and Revenue, 2001- 2022 11 Table 12. Scenario 2. TIF District Taxable Value and Revenue, 2001- 2022 11 Exhibit 1. TIF Revenue Schedule, Scenarios 1 and 2 12 Table 13. TIF Taxable Value and Tax Revenue Schedule, Scenarios 1 and 2 ($000s) 13 TIF Analysis for North Padre Island - Real Page ili Exhibit A GENERAL LIMITING CONDITIONS Every reasonable effort has been made to ensure that the data contained in this study reflect the most accurate and timely information possible, and they are believed to be reliable. This study is based on estimates, assumptions and other information developed by Economics Research Associates from its independent research effort, general knowledge of the industry, and consultations with the client and the client's representatives. No responsibility is assumed for inaccuracies in reporting by the client, the clients agent, and representatives or any other data source used in preparing or presenting this study. No warranty or representation is made by Economics Research Associates that any of the project values or results contained in this study will actually be achieved. Possession of this study does not carry with it the right of publication thereof or to use the name of "Economics Research Associates" in any manner. No abstracting, excerpting, or summarization of this study may be made. This study may not be used for purposes other than that for which it is prepared. Exceptions to these restrictions may be permitted after obtaining prior written consent from Economics Research Associates. This study is qualified in its entirety by, and should be considered in light of, these limitations, conditions and considerations. Exhibit A INTRODUCTION Economics Research Associates (ERA) was engaged to provide the City of Corpus Christi with estimates of tax increment revenues in the proposed North Padre Island Tax Increment Finance (TIF) district. ERA understands that estimated future tax revenues from the district will be targeted to fund a portion of the development cost of funding the North Padre Island Damage Reduction and Environmental Restoration Project. This forecast makes use of data provided by the City of Corpus Christi and the Nueces County Appraisal District covering property tax rates, assessed values, and actual historic taxes paid for the defined TIF district. Data from these sources have been assessed to generate a reasonable estimate of potential tax increment revenue. This report is independent from an earlier report prepared by ERA in the year 2000. This report does not assume any major development in North Padre Island and uses a different methodology to forecast tax revenue in the TIF District. Some numbers are rounded and might differ from the original database. Although every possible effort has been made to present correct information, some errors might be present due to handling of large data sets in a short time period. However, ERA believes that the results are reasonable and concur with the data available. ERA would like to thank all staff members at the City of Corpus Christi and the Nueces County Appraisal District for providing us with data in timely fashion that ensured preparing a comprehensive report. Exhibit A [RA APPROACH The approach followed by ERA first defines the current baseline assessed and taxable value of the proposed TIF district, using assessment information for land and improvements provided by officials with the City of Corpus Christi and the Nueces County Appraisal District. ERA understands that the base year for the district is calendar year 2000. From this base year value, ERA generates two sets of T1F revenue inputs: • Forecast growth in the taxable value of currently existing buildings and vacant land in the district over a 20 -year period using constant growth rate for all types of properties. • Forecast growth in the taxable value of currently existing land and development in the district using variable growth rates based on location within the district. Growth in assessed values and taxes paid for current improvements and vacant land, as well as new development, beyond levels defined in the base year constitute the increment in property tax revenue that can be captured for potential use in the Packery Channel project. Working with officials at the Nueces County Appraisal District, City officials provided ERA with year 2000 assessed and taxable values for all land and improvements in the proposed TIF district. The following table indicates that the district currently contains vacant land and improvements amounting to $85,870,603 in taxable value. The table breaks down values between home site and non -home site land and improvements, as well as exemptions and adjustments, to arrive at a total taxable value. Exemptions and adjustments are made for homestead, disabled individuals and veterans, and people over 65. Preliminary assessments for 2001 are $98,153,611 and for 2002 $107,588,794. Table 1. Taxable Value of Land & Improvement, TIF District - 2000 Category Value Land — Home Site $5,491,354 Land—Non-Home Site S23,947,556 Improvements — Home Site $42,200,590 Improvements —Non -Home Site $17,684,297 Sub -Total $89,323,797 Exemptions & Adjustments $3,453,194 Total Taxable Value $85,870,603 Source: Nueces County Appraisal District Looking further at the above table, ERA determined that home site improvements include single-family homes as well as higher -density condominium projects on the seawall. This distinction is important because home site land accounts for only 18% of total land assessed value, but home site improvements account for 70% of total improvements. Exhibit A Participating Jurisdictions Four jurisdictions are contributing 100% into the tax increment fund for the whole period starting in 2001 through 2022. One jurisdiction, Del Mar Jr. College, is contributing 100% into the tax increment fund for the first 5 years, 80% for the sixth year, 60% for the seventh year, 40% for the eighth year, 20% for the ninth year and 0% thereafter. Three jurisdictions will not participate: Flour Bluff Independent School District (ISD), Port of Corpus Christi and Fire District #2. The following table shows tax rates schedule per $100 of taxable value. Table 2. Tax Rates for Participating Jurisdictions Jurisdictions Providing ALL 2001-2005 2006 2007 2008 2009 2010-2022 Increment Jurisdictions City of Corpus Ciuisti 0.644175 0.644175 0.644175 0.644175 0.644175 0.644175 0.644175 Farm to Market Rd. 0.005238 0.005238 0.005238 0.005238 0.005238 0.005238 0.005238 County Hospital 0.228028 0.228028 0.228028 0.228028 0.228028 0.228028 0.228028 Del Mar Jr. Collage 0.21988 0.21988 0.175904 0.131928 0.087952 0.043976 0 Nueces County 0.350242 0.350242 0.350242 0.350242 0.350242 0.350242 0.350242 Port of Corpus Christi 0.002117 Flour Bluff ISD 1.526197 Fire District #2 0.022200 TOTAL 2.998077 1.447563 L40359 1.359611 L31564 1.27166 1.227683 Note: Assuming tax rates' do not change Source: Nueces County Appraisal District, City of Corpus Christi Regarding the above tax rates, local officials indicated that they did not expect to see unusual growth in the above tax rates in the near future. Following standard TIF modeling guidelines, ERA has taken the above tax rates and held them constant for the duration of the 20 -year TIF model. With tax rates held constant, key drivers of the forecast become rates of appreciation for existing improvements and vacant land. Methodology In order to estimate a reasonable tax revenue flow, ERA made the following assumptions: • Base tax year is 2000 • 2002 tax rates for each participating jurisdiction are assumed fixed for the whole period (through 2022) • Tax increment fund starts in 2001 • End of TIF district is 2022 • Packery Channel will be completed in 2004 • The TIF district tax revenue flow is completely independent of any potential major development that could potentially have a great impact on other developments and land value. TIF Analysis for North Padre Island -- Final Page 3 Exhibit A lila • First to Increase: Value of land and current developments with water frontage in the District excluding beach properties will be the first to increase in value due to the opening of Packery Channel, as it would provide direct access to the Gulf of Mexico. • Magnitude of Increase: Water front properties (vacant land) in the District excluding beach properties will have the greater increase in value compared to properties without water frontage. It is assumed that the value will approach the value of vacant beach properties. Based on the above assumptions, ERA compiled data from the City of Corpus Christi and the Nueces County Appraisal District to estimate current land and improvement value by location in the District. Using Tax ID data, ERA aggregated properties based on their location by defining 4 distinct locations: • Beach • Lake Padre • Other water front properties • Non -water front properties After linking each property to a location, total assessed and taxable values were calculated for each location. Value comparison was established and was later used to estimate growth rates for properties within the District. ERA also aggregated all values of properties on North Padre Island for the past 10 years to estimate an average calculated average growth rate (CAGR) for the island. This CAGR was then applied in the forecast model. Tax rates from the participating jurisdictions were then applied to estimate tax revenue flows. Exhibit A FRA TIF REVENUE ANALYSIS Summary Two scenarios were developed and are presented in this report. The first scenario applies an annual growth rate of 9% from 2003 through 2012, and 3% annual growth rate from 2013 through 2022 for all properties within the TIF District. The 9.1% annual growth rate represents the CAGR of the assessed values of all properties on Padre Island from 1992 through 2002. The second scenario applies different annual growth rates for each property type in the TIF district. Waterfront properties on Lake Padre, the canal and on the proposed Packery Channel are estimated to grow at an annual rate of 24% between 2003 and 2007. During the same period, Beach properties and non -waterfront properties are assumed to grow at 9.1%. From 2008 through 2022, all properties are estimated to grow at the inflation rate of 3% per annum. The 24% annual growth rate represents the estimated CAGR of the total taxable value of TIF properties within the five participating jurisdictions from 1996 through 2001. The two scenarios are conservative and do not assume any new development. Froin 2001 through 2022 and using 2000 as the base year, the first scenario generates a total tax revenue of $63.4 million of which $38.9 million is the TIF revenue. The second scenario generates a total tax revenue of $55.9 million of which $31.3 million is TIF revenue. A detailed analysis follows. Real Estate Market Discussion Economics Research Associates conducted a number of telephone interviews with accredited realtors in Corpus Christi and Padre Island. The general consensus has been that over the past three years demand for good properties, defined as those in good repair, modern appliances, visually appealing and have good access, has increased remarkably. This increase in demand, the limited supply, and a strong market let to an increase in prices. The demand for weekend and seasonal homes from residents of large Texan cities, such as Dallas, Houston and San Antonio is also pushing prices upward. Aging baby -boomers and a healthy economy had lead to strong demand of retirement and seasonal homes in Padre Island. This demand has exceeded the markets ability to supply more housing units. Another factor in the escalation of price and demand is speculation regarding the Packery Channel, which would connect Lake Padre and the Packery Channel to the Gulf of TIF Analysis for North Pad. Island — Final Palle 5 Exhibit A CRA Mexico. The Channel is perceived as a convenient way to provide access to the Gulf of Mexico from Lake Padre and the intercoastal areas. Some realtors indicated that Lake Padre properties would be more attractive to sailing enthusiasts that would need to be east of the 22 -foot bridge to benefit from the Channel. This is assuming a marina is developed on Lake Padre. Properties without water access, known among realtors as dry or interior properties, on Padre Island can demand a $10,000-$15,000 premium over comparable properties in the city. Some realtors indicated that the difference in price between water -accessible and dry properties on Padre Island is too great to characterize. When asked about Port Aransas and how the market compares to Padre Island. Most realtors indicated that properties in Port Aransas, 20 miles from Corpus Christi, are overpriced and are not comparable in quality. Realtors also indicated that Padre Island has strong attributes and character that would attract investors to develop resorts, something that Port Aransas lacks. TIF Waterfront Properties 2002 Using the micro level data (property tax records) obtained from the City of Corpus Christi and the Nueces County Appraisal District, ERA was able to compile waterfront properties in the TIF District by location and type. The TIF District has 1,930.08 acres with a total assessed value of $107.59 million in 2002. Approximately 51% of land have or will have (after the opening of the Packery Channel) water frontage or 977 acres. Approximately 203 acres or 21% of water front properties are exempt properties. The waterfront properties have a total assessed value of $651 million and a total taxable value of $60.6 million. The following tables show waterfront properties by location, land value, improvement value, total exemptions, taxable value, and acreage. Table 3. Waterfront Properties by Location and Value within the TIF District Type Acres Land Value Improvement Total Assessed Taxable Value Value Value Condos Beach 13.45 $2,450,499 $28,962,543 $31,413,042 $29,048,886 Across from the Beach 3.61 $281,352 $3,902,799 $4,184,151 $3,533,871 Other -Lake Padre, Canal 10.93 $1,459,001 811,600,220 $13,059,221 $11,503,641 Lake Padre 470.66 $4,591,013 $938,742 $5,529,755 $5,517,325 Beach 53.20 82,577,105 $4,355,083 $6,932,188 $6,932,188 Exempt 202.86 $0 $0 $0 $0 Other 222.24 82,517,234 $1,669,836 $4,187,070 $4,054,928 TOTAL WATER PROPERTIES 976.95 813,876,204 851,429,223 $65,305,427 $60,590,839 oS, urce:. Nueces County Appraisal District, Economics Research Associates TIF Analysis for North Padre Island — Flnal Page 6 Exhibit A 1 Most of the condominium properties are older developments dating to mid 1980s especially the ones with a beach frontage. Most of the properties on Lake Padre are parcels of vacant land. The other non -classified properties are parcels located on the Canal and what would be on the Packery Channel. Land value, as expected, increase as it approaches the Beach. The most expensive land parcels are those of condominium with beach frontage with over $180,600 per acre. The second highest, on average, are condominium properties on Lake Padre with $133,500 per acre followed by condominium properties located across from the Beach. As expected developed land, although with indirect beach frontage has more value than undeveloped beach parcels. It is plausible to assume that the value of land parcels with beach frontage would more than quadruple in value after it is developed. The following Table shows average assessed value per acre by location. Table 4. Average Assessed Land Value by Location Type Acres Average Land Value ($/Acre) Waterfront Prooetties Condos Beach 13.45 $180,623 Across from the Beach 3.61 $77,840 Other - Lake Padre, Canal 10.93 $133,448 Lake Padre 470.66 S9,754 Beach 53.20 $48,442 Exempt 202.86 $0 Other 222.24 $11,327 TOTAL WATER PROPERTIES 976.95 $17,897 Note: Total average land value excludes exempt properties Source: Nueces County Appraisal District, Economics Research Associates There are 16 condominium developments in the TIF district, of which four are located on the beach, three are located across from the beach and the remainder is located on Lake Padre, the canal and Packery Channel. The most expensive condominiums are those with a direct beach frontage. The following table shows average assessed value per condominium by water frontage location Exhibit A CRA Table 5. Average Condominium Assessed Value by Water frontage Type Total Condo Units Average Condo Assessed Value Condos Beach 324 $96,305 Across from the Beach 115 $36,384 Other - Lake Padre, Canal 399 $32,730 Source: Nueces County Appraisal District, Economics Research Associates The following table shows condominium properties by location, acreage, number of units, and average condominium assessed value. Table 6. Condominium Properties in the TIF District Property Name Water Acreage Total Total Total Total Number Avg. Frontage Land Improvements Assessed Taxable of Units Condo Location Value Value Value Value El Constante Beachfront 3.05 $531,178 $5,317,124 *5,848,302 *5,581,554 69 *84,758 Padre Island- Beachfront 4.78 *885,669 $13,272,754 $14,158,423 $13,239,239 130 $108,911 Gulfstream La Casa Del Sol Lake Padre 0.70 594,134 $889,071 *983,205 $983,205 24 $40,967 Lakeshore Villas Lake Padre 1.26 3153,552 $1,586,544 31,740,096 31,459,835 24 $72,504 Leeward Isles Lake Padre 2.58 *168,810 *2,761,688 *2,930,498 $2,897,168 87 $33,684 Leeward Cove Lake Padre 0.61 $75,632 *585,521 $661,153 $646,153 16 $41,322 Lorimar Place Canal - 2 0.43 $71,650 $303,335 *374,985 *374,985 10 $37,499 blocks from beach Mystic Harbor Packer)/ 0.94 3122,904 *1,185,002 $1,307,906 $1,175,954 32 $40,872 Channel Seahorse Across the 1.03 *78,814 *1,189,358 $1,268,172 $1,017,892 26 $48,776 street. from Beach Nautilus Galleria Across the 1.03 $67,502 $1,219,289 *1,286,791 $1,051,791 45 $28,595 street from Beach Pirates Crossing & Lake Padre 0.53 $184,591 *1,233,405 31,417,996 $1,337,959 36 $39,389 Seascape Villa Portofino Beachfront 2.31 $483,538 $5,372,008 *5,855,546 *5,130,665 53 $110,482 Mariners Cay Canal - 2 3.51 *539,544 *2,497,196 33,036,740 $2,261,740 136 $22,329 blocks from beach Padre Island - Across the 1.55 $135,036 $1,494,152 *1,629,188 31,464,188 44 *37,027 Surfside street from Beach Padre Isle - Island Beachfront 3.31 3528,142 54,812,272 *5,340,414 35,097,429 72 *74,172 House Sand Dollar Canal 0.37 *48,184 *558,458 $606,642 3366,642 34 $17,842 Total 27.99 $4,168,880 $44,277,177 *48,446,057 *44,086,398 838 $57,812 Source: Nueces County Appraisal District, Economics Research Associates Exhibit A [RA Beach properties other than condominiums are made up of 31 vacant parcels and one developed parcel which is the Holiday Inn with an assessed value of $4,5 million. There are 12 vacant parcels that range in size from one to approximately seven acres with the largest being 6.98 acres. Most of the remainder parcels are approximately half an acre. There are 10 (0.51 acres) parcels that are valued at $56,250 each or an average of $110,294 per acre. These are the most valued parcels on the beach. The next three tables summarize properties by Tax ID. The first table lists all properties on Lake Padre, the second table shows all other (Canal, Packery Channel, non -classified) water front properties that are non-exempt and the last table shows all exempt properties. Table 7. Lake Padre Properties by Tax ID TAX ID Total Land Total Total Total Acreage Assessed Taxable Value value Value Improvements 6180- $1,636,741 $820,671 $2,457,412 82,444,982 20.85 6185- $1,136,341 $0 $1,136,341 $1,136,341 23.75 6175- $225,114 $65,880 $290,994 $290,994 5.01 6125- $1,309,302 552,191 $1,361,493 $1,361,493 286.05 6195- $283,515 SO $283,515 $283,515 135 Total 84,591,013 $938,742 $5,529,755 $5,517,325 470.66 Source: Nueces County Appraisal District, Economics Research Associates Table 8. Other Non -Exempt Water Front Properties TAX ID Total Land Total Total Value improvements Assessed Value Total Acreage Legal Description Taxable Value 3730- $152,759 $111,409 5264,168 $264,168 8.05 Island Fairway Estates 4793- $791,199 8276,447 81,067,646 $1,067,646 6.75 Mariners Cay Lots 6170- $584,752 80 $584,752 $584,752 7.58 PADRE ISLAND SEC B 6205- $735,000 $0 $735,000 5735,000 60 PADRE ISLAND SEC 18 1115- $174,019 $0 $174,019 $174,019 138.86 BRYAN WM SUR 606 LS 64, 129.964 ACS ICL 1717- 879,505 $1,281,980 81,361,485 $1,229,343 1.00 Compass Townhomes - 13 units Total $2,517,234 $1,669,836 $4,187,070 84,054,928 222.24 Source: Nueces County Appraisal District, Economics Research Associates Exhibit A G�1 Table 9. Exempt Properties TAX ID Name Acreage 111500000010 STATE OF TEXAS 138.87 111500000050 STATE OF TEXAS 4.03 373000030050 FLOUR BLUFF IND SCHOOL DI 6.5 616500451400 CITY OF CORPUS CHRISTI 3.46 619000000005 STATE OF TEXAS 0 625200000010 NUECES CO 20 625200000020 NUECES COUNTY TRUSTEE 30 Total 202.86 Source: Nueces County Appraisal District, Economics Research Associates Growth Rates Using available data, ERA conducted trend analysis for various areas to establish a trend in property growth rates on Padre Island and in the participating jurisdictions. These growth rates are later used in the forecast models to estimate TIF revenue. Padre Island Using micro level data, ERA compiled the assessed values for all properties in North Padre Island from 1992 to 2002. In 1992, total assessed value for properties on Lake Padre and on the beach were high and decreased in the following years. This is the main reason for the negative CAGR for beach properties and the small figure (less than one percent) for Lake Padre properties for the 10 -year period. North Padre Island, in total, including waterfront and non -waterfront properties had a CAGR of 9.1%, i.e., properties grew on average 9.1% per year between 1992 and 2002. The following table summarizes growth rates for Padre Island by location of properties. Table 10. Padre Island Growth Rates by Location —1992-2002 Year Padre Island Waterfront Lake Beach Other Non - (All Properties) Condos Padre Waterfront Waterfront CAGR 1992-2002 9.10% 5.99% 0.77% -3.96% 2.03% 10.19% CAGE. 1993-2002 10.14% 7.27% 5.45% -2.30% 2.39% 11.06% Source: Names County Appraisal District, Economics Research Associates Exhibit A R A TIF Revenue Conclusions The following tables summarize the TIF District's estimated taxable value, grand total tax revenue and the incremental tax revenue from 2001 through 2022. Scenario 1 reflects an overall average annual growth rate of 9.1% from 2003 through 2012 and an annual growth rate of 3% from 2013 onwards. Scenario 2 reflects annual increase in taxable value of 24% for properties on Lake Padre and other water front properties excluding beach properties. Beach properties, existing condominium properties and properties without water frontage increase 9% in taxable value from 2003 through 2007 and 3% from 2008 onwards. Table 11. Scenario 1. TIF District Taxable Value and Revenue, 2001— 2022 2001-2005 2006-2010 2011-2015 2016-2020 2021-2022 Taxable Value $590,873,474 $909,709,774 51,300,406,021 $1,523,320,994 $675,226,929 Grand Total Tax Revenue $8,553,266 511,899,730 515,964,864 518,701,553 58,289,646 Incremental TIF Revenue 52,338,110 56,251,011 $10,693,770 513,430,459 56,181,209 Accumulated TIF Revenue 82,338,110 88,589,122 819,282,891 $32,713,350 538,894,559 Source: City of Corpus Christi, Nueces County Appraisal District, and Economics Research Associates Table 12. Scenario 2. TIF District Taxable Value and Revenue, 2001— 2022 2001-2005 2006-2010 2011-2015 2016-2020 2021-2022 Taxable Value 5601,808,948 5912,635,163 51,072,871,721 51,243,752,371 5551,305,402 Grand Total Tax Revenue 58,711,564 511,971,610 513,171,464 515,269,336 56,768,283 Incremental TIF Revenue 52,496,408 56,322,891 57,900,370 59,998,242 $4,659,845 Accumulated TIF Revenue 82,496,408 $8,819,299 816,719,669 $26,717,912 $31,377,757 Source: City of Corpus Christi, Nueces County Appraisal District, and Economics Research Associates Exhibit A CRA The following exhibit shows the growth in the TIF revenue from both scenarios. Exhibit 1. TIF Revenue Schedule, Scenarios 1 and 2 63000 83601 $2300 82661 1 01300 81300 8300 so y;zr 2001 2012 2003 200/2003 20061007 2000 2009 2010 2011 2012 2013 2014 2013 2016 2017 2010 2119 2120 2121 2022 TIF Maris for Nath Padre Island — Fina! Page 12 Exhibit A CRA The following table shows taxable values, grand tax revenue and incremental TIF revenue from the two scenarios in thousands of dollars. Table 13. TIF Taxable Value and Tax Revenue Schedule, Scenarios 1 and 2 - 2001-2022($000s) YEAR TAXABALE VALUE GRAND TAX TIF REVENUE REVENUE Scenario 1 Scenario 2 Scenario 1 Scenario 2 Scenario 1 Scenario 2 2001 $98,514 $98,514 $1,426 81,426 $183 $183 2002 $107,589 8107,589 $1,557 $1,557 $314 $314 2003 $117,376 8118,803 $1,699 $1,720 $456 $477 2004 $127,940 $131,379 $1,852 $1,902 $609 $659 2005 8139,455 $145,524 $2,019 $2,107 $776 $864 2006 8152,006 $161,483 $2,134 $2,267 $928 $1,061 2007 $165,686 $179,546 $2,253 $2,441 $1,085 $1,274 2008 $180,598 $184,932 $2,376 $2,433 $1,246 $1,303 2009 8196,852 $190,480 $2,503 $2,422 $1,411 $1,330 2010 8214,568 $196,194 $2,634 $2,409 81,580 $1,354 2011 $233,880 $202,080 $2,871 $2,481 $1,817 $1,427 2012 8254,929 $208,143 $3,130 $2,555 $2,075 $1,501 2013 $262,577 $214,387 83,224 $2,632 $2,169 $1,578 2014 8270,454 $220,819 $3,320 $2,711 $2,266 $1,657 2015 8278,567 8227,443 83,420 $2,792 82,366 $1,738 2016 $286,924 $234,266 $3,523 $2,876 82,468 $1,822 2017 8295,532 $241,294 $3,628 82,962 $2,574 81,908 2018 8304,398 $248,533 $3,737 83,051 $2,683 $1,997 2019 $313,530 $255,989 $3,849 $3,143 $2,795 $2,089 2020 8322,936 $263,669 $3,965 $3,237 $2,910 $2,183 2021 8332,624 8271,579 $4,084 $3,334 $3,029 $2,280 2022 8342,603 $279,726 $4,206 $3,434 $3,152 $2,380 TOTAL $63,409 855,892 54,999,537 $4,382,374 $38,895 831,378 Source: City of Corpus Christi, Nceces County Appraisal District, and Economics Research Associates Exhibit A Reinvestment Zone Number Two City of Corpus Christi, Texas EXHIBIT B Map: Existing Uses and Conditions in the Zone Padre Island Tax Incremen Financing Di IVuece County Atl1111111111 11111111./111!1111 R\r11111111 r IOQ� 200 LUH11111I IIIIII11IFll�� �� 1 3 3 — ga4!iitIIIIIIIIJoll!II _- 3 i� �Illlllll !!l ^— C 3 � i ! ► — C ` gm IIH/111/1\� �_ C � � � � QIIIINI1111BII E 1 1111111111 - 1 - _ �i�'�ii++� • ►•(\\1111111 111111► ` /w alu>,1a �: . � i n�� ,P`,QWiii ,,� 1p11' t\, Nl � � It Illllllflq/, �� Cpj �C J\aa\pO,,piiiriii iuiliiiiieii' a' :a 7: 7� Cpl ,I.1aa\a\ap11{IIIIII 111111111711/I,i„�. "4 ��� �1 Irl Wil, ,�����;�.Q`•� `SI ♦♦♦i 11111111117] it # ♦`ate/j4 ��O �J �,��,� ,C ♦♦♦�♦♦♦♦ L i IN I/ 811 r�'��iii' •i 0 5001 ,gppgn,V ,i 1 Scale In Feet Copyright 1989-2001 City of Corpus Christi Texas HV I5MAPOI Citg Of Corpus Christi, Planning Department Exhibit A Reinvestment Zone Number Two City of Corpus Christi, Texas EXHIBIT C Map: Proposed Improvements and Proposed Uses of Real Property In the Zone Exhibit A Padre Island Tax Increment Finance District DTIF Boundary , MediumNo.1y Reegeretel Vater I HO Denny Ralldentin! Wlural 41.. Cominemil PerN Lipht Induplwl Low.Denedy RasidenLi I I Heavy rrdueenet Source: Department of Development Services Exhibit A Reinvestment Zone Number Two City of Corpus Christi, Texas EXHIBIT D Project Casts and Estimated Cash Flows Exhibit A Reinvestment Zone Humber Two City of Corpus Christi, Texas Packery Channel Project Costs and Funding Project Costs Corps of Total Zone Two Engineers Land, easements, ROW 8236,200 882,670 8153,530 Demolition 20,834 7,292 13,542 Utility relocation 104,073 36,426 67,647 Site preparation 74,219 25,977 48,242 Reach 2 0 0 Mobilization & demobilization 486,881 170,408 316,473 Dredging 602,939 211,029 391,910 Reach 1 0 0 Mobilization & demobilization 1,348,383 471,934 876,449 Dredging 2,912,120 1,019,242 1,892,878 Overdepth 425,236 148,833 276,403 483,774 169,321 314,453 Placement in placement areas 1,382,386 483,835 898,551 Concrete bulkheads 2,389,894 829,463 1,540,431 Anchored oorxrete bulkheads 0 0 0 Containment sheetple/cap 0 0 0 Sand bypass pipe 321,421 112,497 208,924 13rkdge scour protection 743,041 260,064 482,977 Jetty construction 9,738,800 3,408,580 6,330,220 Wailovay curbing 0 0 0 Concrete waHcway 1,502,309 525,808 976,501 Planning, engineering & design 2,737,680 958,188 1,779,492 Construction management 1,817,640 636,174 1,181,466 Meintertance dredging reserve(a) 1,400,000 1,400,000 0 Mitigation costs 1,250,000 437,500 812,500 Mollie Beattie monitoring 541,000 189,350 351,650 Parking lot(b) 750,000 750,000 0 Parks & recreation center(b) 2,000,000 2,000,000 0 Finandng, contingency reserves & rounding 1,410,683 1,410,683 $34,659,513 815,745,274 818,914,240 Funding Souroes Carps of Engineers 818,914,240 818,914,240 Series 2003 Bonds 2,500,000 82,500,000 Series 2004 Bonds 4,300.000 4,300,000 Series 2005 Bonds 4,330,000 4,330,000 Utility and Land Credit 340,273 340,273 General Land Office Grant 1,275,000 1,275,000 Surplus Tax increments or Bonds(b) 3,000,000 3,000,000 834,659,513 815,745,273 818,914,240 (a) Manintenance dredging reserve either to be financed from the proceeds of Series 2005 Bonds or as funds become available from surplus tar Increments, or a combination thereof. (b) Parks & recreation center and parking lotto be tlnanced as funding becomes available from surplus tax increments or bonds, or a combination thereof. •LIUnuus 000'03 p vowodx3 oN1 lUNuPV DILL Pus 000'ss lo saga wgeY CUF(8dl u1. (o) Z q141006 • lbodei row Prenv Yli3 • ate Ad 0=118 Woe Ad 7aaPn9 puidUIW • 600Z J' I ; gores (4) 'a•I'A Q Y113 UI a' 1'A PrzlexIdV IQIOL PQ1U Q 'Z ODUumS • 801481 ZDOZ is^enV Vl13 -wog AAP W 111eA 0618 owl a»A PaM Y laN • Z02 91002 wisA xml (0) 004'128'4 000'912 Z6L'989'EZ 09Z'L40'6 000'081'6 Z49'894'9 19L'909 PL6'E80'le 09Z09Z oft 000'000'£ 091'664 000'94 09Z'LL8`1 000'089 09Z9LL 000'91.6 009.99 00008£1 000'898'261 000'000'£ ZZOZ ELOL 0511644 000'000'8 091'614 000'91 00906'1 09Z'99L 000'919 000'947 009'99 000'081'1 000'801`984 000'000'8 IZ(Z LZOZ 09Z'L8£ 000'000'£ 091'16£ 000'91 09Z'9L9'I. 000'9£1 000'011 098'45 009'99 000'£94'1 000'86L'LL4 000'000'8 0Z0Z LLOL 05146 000.000.E 092'96£ 000'91. 09Z'1£L'4 091'919 00'199 091'£62 009'65 000'690'1 000'811'011 000'000'8 8401 OLOZ 000'019 000'000'8 000'019 000'91 009'149'4 000'049 000'269 009.14E 009'99 000'168'4 0001:99'191 000.000.E 9102 8402 000'999 000.000.E 000999 000'91 009'269'1 000'049 000'919 009.11E 009'99 000'806'1. 000'4LP'S91. 000'000'6 LIOZ 9102 009'204 000'000'8 009'206 000'94 000'097'1 091'999 09Z'499 009'26£ 009'99 000'218'1 000'98£'941. 000.000.E 91.01 LIOL 09L'L9E 000'000'£ 092'19£ 000'94 092'944'4 000.994 091'£19 009'L9E 005'99 000'9EL'1 000'£19'1.41 000'000'£ 9101 9401 091'984 000.000€ 00984 000'94 092'191'1 000'009 009.264 09L'826 009'99 000'199'4 000'80617E4 000'000'£ 4401 9402 cog 'en, 000'000'£ 009'£27 000'91 000.9611. 091'414 009'L09 09L9LL 009'99 000'849'I. 000'L1.9'8L1. 000'o00'£ £ice P101 911'89£ 000'000'£ 914'698 000'91 9LE•L94'4 918.644 0911314 09L'£26 009'99 000'109'4 000'ca'a1 000'000'8 Z10L £10Z L14'L9£ 000'000'£ 401'869 000'91 09L'PE9 09L17ZE 009.11£ 009.181 498`09 000'LZY'1 000'011'911 ZLZ'49L'L 1102 z 10 LLL'P91'1 61.1'949 000'91 09L1788 09L'VZ6 009.21E 009'L84 898'04 0001798'4 000'72£•041 £91'602'1 010Z 11OZ £91'60Z'Z 499'119 000'91 091'4£9 09L'PL£ 009'11£ 009'L94 404'18 000'0E8'4 000'0491704 6817'L69'4 600Z 0L01 887'169'I. 199'9L7 000'91 091'489 09L17L£ 009•ZZE 009'L21 1.09'12 000'EOE'4 000'190'68 649.122'4 90(Z 8002 849'121'4 4811184 000'91 05L1789 09L17ZE 009'LZ£ 009'L94 494171 000'411'4 000919'£8 91.6'L8L LOOZ 9001 91•e19L 4E9'1.ZZ 000'91 09L'469 09L1•ZE 009.11E 009'L81 48£'01 000'190'4 000'E19'9L 18Z'199 9002 LOOL 49Z'499 (9269Z) 000'94 9L9'999 9L9'9LE 009'122 009'L94 818'04 0001799 0001,99'69 5L'069 9002 9001 L£L'089 219'68 000'21. 091'1399 - 092'912 009'1.81. £91'8 000'699 000'609'94 711'009 P001 9002 411'009 094'1LZ 000'91 1811781 - Z6L1784 14217 000'116 000'208`Z6 PLZ1672 800Z POOL 41Z'6Z1 904'994 000'91 - 1£4'4 616'181 9917'Zl4164 89 4' 49 ZOOZ £002 991'19 011'9£6'01 LOOL ZOOL 6ulEPua swum mold (*) sususdx !Rol song swop Keg sem 800m wise seulws (4) unusual (v$ d mince mat IML sou uI1ui8Y11 Pund puo9 4su0 lunuuv Q soy PAPAW dLL pe93s041 PML woe pun Puoti xul eim JqI ul4s9W Eu(Pu3 all Puma Pu081 MI*A PSUnide0 ouluWdu9 spend anima {4•O SenUSAAI Ps6Psld %09 L Am Puium Pu09 0001100.6 oourle9 PUnj PUB Pwlnb•tl 9169.4 :summit wow 000'0£4'41 %002 23ulI1fl1 Uo9UNW P2S'OWZOI MMBA PoW.JddV iaN ZOOZ 000 9O U! - SOX As Oeste 4 1=0 0.10 Z9L'089'51 =PA Peole1ddy 11401ZOOL 000'008'4 PO us(' - v00Z As 000'00e I. I9 uicaSRI NNW 'M 91.0'910'69 :ease 3ua++w+0U1 xrl 000'006'2 60 i0V1 • ECM As aanwwlew U01111W 09S -300 :penal spuog :suondwn$$y punct puog pump, ;Japed semi ViiJ43 sndloo to 40 arNl mcpunN euoZ wau uenUlsad Reinvestment Zone Number Two City of Corpus Christi, Texas Packery Channel Maintenance Dredging Costs Assumpeons: Required Bad Fund Balance 3,000,000 City MaInt Res from Bonds 1,400,000 Stetting Maintenance Expense: 350,000 Maintenance annual !nor 2.00% InterestIncome: 1.85% Resources Available for Maintenance Dredging Start -up and Total Maintenance Maintenance Maintenance Available Ending FYE Tax Beginning Transfer from Interest Reserve from Total Dredging Less Balance After 7131 Year Balance Bond Fund Earnings Bonds Available Expense Expenses CltyAdvance City Advance 2002 2001 0 0 0 0 2003 2002 0 0 0 0 0 232,747 (232,747) 232,747 0 2004 2003 0 0 0 0 0 0 0 0 2005 2004 0 0 0 1,400,000 1,400,000 0 1,400,000 0 1,400,000 2006 2005 1,400,000 0 25,900 1,425,900 0 1,425,900 0 1,425,900 2007 2006 1,425,900 0 28,379 1,452,279 0 1,452,279 0 1,452,279 2008 2007 1,452,279 0 20,887 1,479,148 350,000 1,129,148 0 1,129,148 2009 2008 1,129,148 0 20,889 1,150,038 357,000 793,038 0 793,036 2010 2009 793,036 0 14,871 807,707 364,140 443,587 0 443,567 2011 2010 443,567 0 8,206 451,773 371,423 80,350 0 80,350 2012 2011 80,350 382,477 1,486 484,313 378,851 85,482 0 85,482 2013 2012 85,482 389,125 1,581 470,108 386,426 89,739 0 89,739 2014 2013 89,739 423,500 1,880 514,900 394,157 120,743 0 120,743 2015 2014 120,743 436,250 2,234 559,226 402,040 157,186 0 157,188 2018 2015 157,188 382,250 2,908 522,344 410,081 112,264 0 112,284 2017 2016 112,284 402,600 2,077 518,840 418,282 98,558 0 98,558 2018 2017 96,658 356,000 1,823 458,381 428,848 29,733 0 29,733 2019 2018 29,733 520,000 550 550,283 435,181 115,102 0 115,102 2020 2019 115,102 398,250 2,129 515,482 443,885 71,597 0 71,597 2021 2020 71,597 397,250 1,325 470,172 452,762 17,409 0 17,409 2022 2021 17,409 414,260 322 431,981 461,818 (29,838) 29,838 0 2023 2022 0 449,250 0 449,250 471,054 (21,804) 21,804 0 4,931,102 141,008 1,400,000 8,756,497 284,387 4 1 EN:i=EMBEAVI:Ma DIAMOND BEACH HOLDINGS LLC - 986VE0 T.I.R.Z. No. 2 BOUNDARY REVISION EXHIBIT B - Additional Bo ndar EXISTING T.I.R.Z. No. 2 AREA ' /_,',&67 PROPOSED ADDITIONAL T. I.R.Z. No. 2 AREA %019/ // V �\. RFCORD1NG INFf1RMATIfNJ• 41' 1. TRACTS 1-4 AS RECORDED N 4 4 DOC. 2018045542 0.R.N.C.T. 2. AQUARIUS STREET RIGHT—OF—WAY x EASEMENT AS RECORDED N DOC. 7 2011039226 O.R.N.C.T. 3. 39.6 ACRE TRACT AS RECORDED ti— Meer N DOC. 2017050832 O.R.N.C.T. Ise II dm 11111111111a.:01►SII■ I. illllllllllllllllllllllll• - 111111" I ' "'"11111.111 [I 111 Ill _I ill 4 LJA ENGINEERING TEXAS ENGINEERING FIRM F-1386 III 4/11111111111111111 411 i 011111111111 LAA ENGINEERING, Inc. GRAPHIC SCALE 500 'r000 ' �! 1 500 I I I _ 2000' 5350 S. Staples Street, Suite 425, Corpus Christi, Texas 78411 '.14',050 � ri: ail/ N//r`r�_: ilii% /''`' ,iii j�iiii:�• ••% ,ii ,,,,f.,•/ /cele ' ///�i �i�i /i e j/��� : iii ri ��/�/.ii�'z . j� i �.% rii/ri / /,/%% / i �.ii .J// /%' /. . 1. � %%.,//e MU ee� �i / iiii i .,,e eeeee eee ••Er, ..eeee► I. i"iiiiii wt.= %% °' ZIMAVAI Arnie phone: 361.991.8550 fox: 361.887.8855 www.LJA.com CITY OF CORPUS CHRISTI, TEXAS TIRZ #2 Current Land Use co 4 Legend / OTIRZ #2 Drainage Corridor Professional Office Current Land Use Park'': Commercial / Vacant Low Density Residential Public -Semi Public; PSP / L 4 Water 7x/�� Medium Density Residential Light Industrial Natural Area C�1 High Density Residential - Heavy Industrial / N.etland -- • 1 Mobile Horne / / / / / / / / / / / / / / / / / Printing Date: 8/26/2009 File: H:\PLN-DIR\SHARED\GIS Projects\Legal\TIRZ2\clu.mxd Prepared By: MikeN ® City of Corpus Christi, Texas 0 1,450 2,900 5x800 EXHIBIT C Feet CITY OF CORPUS CHRISTI, TEXAS TIRZ #2 Zoning 'ATT/I0 A -1/I0 ATdIO B -2/,I0 / B{2A/10 R-1'B%PUD-1410 B2LI0 dill 1111% I 1dID.1dIiI miL AA1 0 Printing Date: 8/26/2009 File: H:\PLN-DIR\SHARED\GIS Projects\Legal\TIRZ2\zoning.mxd Prepared By: MikeN C City of Corpus Christi, Texas 1,350 2,700 5,400 Feet EXHIBIT D CITY OF CORPUS CHRISTI, TEXAS TIRZ #2 Future Land Use v(4_sr / 411117A4*IIINIF.-Thi• Legend QTIRZ #2 Drainage Corridor ,'� Commercial Future Land Use Park Research/Business Park Conservation/Preservation --- Estate Residential Tourism 4 Water Low Density Residential Public -Semi Public Natural Area / Medium Density Residential Light Industrial Wetland High Density Residential - Heavy Industrial Vacant r Mobile Home AR Professional Office Printing Date: 8/26/2009 File: H:\PLN-DIR\SHARED\GIS Projects\Legal\TIRZ2\flu.mxd Prepared By: MikeN © City of Corpus Christi, Texas 0 1,375 2,750 5,500 EXHIBIT E Feet v • RA CKE-Ifiry"5-- 1• EXHIBIT F • PHASE 1 - SEAWALL PARKING LOT RESTROOMS • PHASE 2 - PACKERY CHANNEL PARKING & OVERLOOKS (NORTH & SOUTH SIDES) PHASE 3 - PACKERY CHANNEL RESTROOMS (NORTH & SOUTH SIDES) PHASE 4 - ADA RAMPS TO JETTIES (NORTH & SOUTH SIDES) PHASE 5- PACKERY CHANNEL PAVILION (NORTHSIDE) PHASE 6 - ADMINISTRATION & MAINTENANCE BUILDING PHASE 7 - ADA PARKING LOT IMPROVEMENTS AT JETTIE RAMPS PACKERY CHANNEL SIX PACK PROJECT LOCATION MAP CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 DATE: 10/08/2013 =IMP =NM C14 „r0 °IV/PP *C‘! 00 A $%�\ 40, \4'‘% 1;0* 00 e �De ►� 0 1EE(� GLO LEASE MKTi EXHIBIT G „ � 0 I IMO I iia ,Asrlacr��'— SCALE : 1” - 400' JAN. 7, 2002 GLO LEASE TRACT 5 NORTH PADRE ISLAND STORM DAMAGE REDUCTION AND ENVIRONMENTAL RESTORATION PROJECT PACKERY CHANNEL PUBLIC & ENVIRONMENTAL FACILITIES PLAN NORTH AND SOUTH ACCESS TO PACKERY an a LSERVICES S Gwnsn ENGAMING SEs R ICES OEPAmvwr Sru REV. 1 AlTACHINENT No.i Shoat 1 of 6 EXHIBIT G SUBLEASE AREA SCALE : 1" = 300' NOV. 7, 2001 NORTH PADRE ISLAND STORM DAMAGE REDUCTION AND ENVIRONMENTAL RESTORATION PROJECT PACKERY CHANNEL PUBLIC & ENVIRONMENTAL FACILITIES OVERALL PLAN - REACH 1 al? OF CORPUS CREST INGINOMINc SENILIS Uaturne?SIM CRY PROJECT NO ATTACNIMPfr Na.2 Slew! 2 of • EXHIBIT r MIOPOSED NOM MO NOVNIECIICOO 110.110104P. ZAHN _..ROAD /• 1 ♦♦7i 4 B< oQd SCALE : 1" = 100 0•1•MOt DOM 01. DEC. 13, 2001 NORTH PADRE ISLAND STORM DAMAGE REDUCTION AND ENVIRONMENTAL RESTORATION PROJECT PACKERY CHANNEL PUBLIC & ENVIRONMENTAL FACILITIES PLAN VIEW COY OF CORPUS oYbSR Y PROJECT ENPhR'PoNO SEANCES OFDMIW? NO 5722 REV. 1 ATTACHOBIT Mat 6hwt 3 of 6 2 2 0��: o �� ITI II: I , $ 1,0%-i*. i; r1 E NC qnBpU� C�NW �" - - a� a ,_ I •,o„ I• I� _ _ / ! J lgp0• / s ��^I P�TE�VNNFE JO' 1 T?.----: ti1406 `` -�.5."" GETATION REg,IgZE '� '"- •.J L ry V\ ON •N l OUT LOSE MGT 2 F 00%14 GPARKING PS --- _ _ PROPpSEpACE. _ _ o / — II rr I r 18 16 I- I � E4 sou,-6P'�\\ �Cf7Anpy' *F.. noN NeEt I, \ , MIN47I PARKING _ -- p`, PACES EXHIBIT G 11 L NORTH PADRE ISLAND STORM DAMAGE REDUCTION AND ENVIRONMENTAL RESTORATION PROJECT lu,a fia Ir b4� Wim=: w PACKERY CHANNEL PUBLIC & ENVIRONMENTAL FACILITIES BEACH PARKING NORTH & SOUTH OF JETTIES SCALE : I" - 100' 1 _ CORPUS OM= an PRCVECT DEC. 13. 2001 erAmexO SORT= OSTAVIIrtM NO. RUT f✓!V. 1 ATTAC62ifT 11..2 6Y.d 4 of 6 I <` IP 7. _ L __ tE t�?� __�_F _L—J—L� 1,4 g = R EXHIBIT G - AMOR 11709t .MEAS OD LEASE TACT SCALE : 1" = 100 Nov mops. 8i wt G NORTH PADRE ISLAND STORM DAMAGE REDUCTION AND ENVIRONMENTAL RESTORATION PROJECT PACKERY CHANNEL PUBLIC & ENVIRONMENTAL FACILITIES BEACH PARKING NORTH & SOUTH OF JETTIES on or MOMS 02517 NOV. 7, 2001 MIND ANG SEWLES mmWennv CIN POWER N0. 5122 REV. 1 ATTAClEEENT 11.2 lbw! E of i/ NORTH SIDE SOUTH SIDE " r 1 r T 1 1.r -----I p- 1 --r r 1 r LIQ 1 J L 1J I 1 JIR. L e_� � L 1 1 I I 1 1 1 1 a 1 1 I 1 1 1 I 1 1 I 1 1®Ap I_� ir i 1 1 --- 1 1 I 1 1 1 r r r � r r � r r i r i 7 jU ii ------i-------------- � - --t i! ! i i 10 OUTFALL 3 STRUCTURE OVERLOOK EL=6.55' PROP. FILL SEE DETAIL BELOW 130' 164+00 270' J 140' 33' 64' 25 8 PARKING AREA INLET T MINOR BULKHEAD WATER EXCHANGE -20 8 EXHIBIT G 1 PIPE SIDEWALK 1 EL=5.25' BULKHEAD ipopplr EL =-1.75' 1 � 3 l EXISTING GROUND PROP. CHANNEL 1-10 -14.25— 8 HORZ. SCALE : 1" - 10' VERT. SCALE : 1" - 5' 0 EL =-14.75' 120 NOV. 7, 2001 8 0 NORTH PADRE ISLAND STORM DAMAGE REDUCTION AND ENVIRONMENTAL RESTORATION PROJECT PACKERY CHANNEL PUBLIC & ENVIRONMENTAL FACILITIES TYPICAL CROSS-SECTION NORTH PARKING LOT NEXT TO BULKHEAD CRY or CORPUS CIMSR CITY PRI . , ENGINEERING SMILES DPM'IVEM NO. SI., ATTACHMENT No.2 shoot 6 of 6 EXHIBIT H PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE #2 CITY OF CORPUS CHRISTI RECOMMENDATIONS FOR APPROVAL AUGUST 29, 2023 PROJECT PROJECT BUDGET EXPENSES PROJECT TO DATE STATUS 1 Packery Channel South Parking Lot Improvements This project consisted of the demolition of existing facilities, construction of approximately 11,500 square yards of new flexible pavement, parking lot, two concrete driveways, minor water and wastewater improvements, landscaping improvements, lighting improvements, and concrete pedestrian ramp. $640,447 Completed March 2006 Projects Include: Packery Channel Monitoring FY 2008-2009 Complete Packery Channel Monitoring FY 2009-2010 Complete Packery Channel Monitoring FY 2010-2011 Complete 2 Packery Channel South Parking Lot, Landscaping Phase 2 This project consisted landscaping and irrigation improvements to the newly constructed 300 -space parking area including the construction of new planting islands with mexican fan palms, sea grape trees, decorative rock and irrigation. $145,461 Completed March 2008 3 Packery Channel Boat Ramp Parking Lot / Access Road This project consisted of the construction of approximately 17,000 square yards of HMAC flexible pavement parking facility adjacent to the existing Packery Channel Boat Ramp; construction of an access road and related signage and pavement markings, and the installation of 1,000 square yards concrete reinforced pavement adjacent to boat ramp. concrete bollards; minor drainage improvements; 3,500 linear feet of electrical conduits; and minor landscaping. $1,053,176 total project cost. $549,216 from TIRZ #2 Completed July 2009 4 Packery Channel Boat Ramp Dredging This project consisted of dredging approximately 17,800 cy of the Packery Channel Boat Ramp and adjacent area. The work included environmental control measures to prevent erosion and allow for discharge of water from the dredging operations to discharge into the surf of the Gulf of Mexico. Minor amount of stone were installed at the boat ramp to enhance shoreline protection. $431,377 Completed April 2010 5 Packery Channel South Parking Lot Restroom (Phase 1) This project included the construction of restroom facilities at the South Parking Lot at the beach seawall on Windward Drive. The project included separate men and women facilities to with showers, toilets, changing stations, outdoor seating area, and native landscaping. $460,743 Completed July 2010 6 Packery Channel Parking Lot and Overlooks (Phase 2) This project consisted of improvements along the north and south sides of Packery Channel including seven overlook structures, parking lot, access road, pedestrian walkways, storm water structures lighted bollards with electrical receptacles, lighting, landscaping, concrete benches and repairs to shoreline structures. $2.869 224 Completed March 2012 7 Packery Channel Aids to Navigation / Signage This project consisted of lighting improvements to Packery Channel as required for safety and security along with signage to mark no wake zones. Per ISAC, additional funds needed to replace signs following Hurricane Harvey. $64,500 Completed December 2012 7a Packery Channel Aids to Navigation / Signage - Hurricane Harvey Repairs Per ISAC, additional funds needed to replace signs completed in Project 7 following Hurricane Harvey. Revised 2/20/18 $65,000 $7,166 Completed April 2019 page 1 of 3 8/11/2023 EXHIBIT H PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE #2 CITY OF CORPUS CHRISTI RECOMMENDATIONS FOR APPROVAL AUGUST 29, 2023 PROJECT PROJECT BUDGET EXPENSES PROJECT TO DATE STATUS 8 Packery Channel Restroom Facilities (Phase 3) This project consists of the purchase and installation of a mobile restroom on the north side of the Packery Channel and adjacent parking lot. The project also includes turn -around and connector t( Zahn Road. A mobile trailor restroom on the south side of Packery Channel with wastewater lift station and wastewater 2 -inch force main (approximately 2,500 linear feet long) is also being planned. Priority Item. P&R recommends self contained, solar powered mobile units to be placed at Packery Channel Parking Lot, end of Zahn Road and on South side of PC (at a location yet to be determined) Build and Install portable restroom shelters to hold portable restroom units at various locations. Build and Install Portable Shower units on the North and South side of Packery Channel. Board approval of 4 portable restroom facilities at $65,000 each plus 20% contingency and shower facilities at $100,000 total. Revised 2/13/2018 $412,000 $402,000 Solar Powered Units: Complete. Showers: Partial Water line installed Spring '18. In process of coordinating with GLO. 9 Packery Channel Ramps to Jetties (Phase 4) This project includes ADA beach access on the north side and the south side or the channel to provide access from the beach to the restroom, lookouts and parking lots. This project will include the ADA approved mobi-mats on the north side and the south side of Packery Channel to provide access from the beach to the restrooms, lookouts and parking lots. This project was designed as part of the Phase 2 project for parking and overlooks. Priority ITem: P&R recommends a new design for structures since the GLO will not approve construction of parking lots on the beach. For Mobi-Mats per ISAC recommendation. Revised 2/20/18 $35,000 $8,979 Complete 10 Packery Channel Dredging and Beach Nourishment - 2012 The project consisted of dredging approximately 264,300 cubic yards of beach quality material from within Packery Channel and placement of the dredged material as beach nourishment along the Gulf shoreline to the south of Packery Channel, and 15,000 cubic yards of sand from the north to south end of the N. Padre Island Seawall. Dredging schedule to be determined by results of annual study of channel. $1,820,843 Last Completed March 2012 10a Packery Channel Dredging and Beach Nourishment - 2020 The project consisted of dredging beach quality material from within Packery Channel and placement of the dredged material as beach nourishment along the Gulf shoreline. Dredging schedule to be determined by results of annual study of channel. $350,000 In permitting process. Waiting to hear from USACE. 10b Ongoing Packery Channel Maintenance through 2042 This project consists of ongoing maintenance of the Packery Channel, including a regular dredging schedule to continue through December 31, 2042 $36,400,000 11 Packery Channel Pavilion (Phase 5) This project includes the pavilion expansion adjacent to the north side restroom or north side boat launch. This will allow the deck area around the restroom and some sitting areas for visitors. Design will begin in FY 2016 and construction will follow in FY 2017 dependent upon available funding. P&R recommends further discussion on this item to determine if another amenity would better suit the area. ISAC recommends Pavillion staged at the boat ramp parking lot as well as pavillion like structure on north and south side of the jetty. Revised 2/20/18 $250,000 Estimated completion: Fall 2019. At 90% Design 14 Periodic Survey of Channel Conditions and Shoreline Packery Channel monitoring began in 2003 by Texas A&M Division of Nearshore Research by the U.S. Army Corps of Engineers. They ceased monitoring efforts in 2007 and the City assumed monitoring in 2008. The program includes the collection of bathymetric data in Packery Channel and the surrounding nearshore, measurement of elevation along the adjacent beach and inland channel segment (shoreline position), elevation measurements across the Mollie Beattie Coastal Habitat Community, and measurement of current velocity in the inland channel segment. $205,000 $1,847,312 (Lifetime Expenses to Date) 2018 monitoring complete. 2019 Contrat executed. page 2 of 3 8/11/2023 EXHIBIT H PROJECTS WITH FUNDS FROM TAX INVESTMENT REINVESTMENT ZONE #2 CITY OF CORPUS CHRISTI RECOMMENDATIONS FOR APPROVAL AUGUST 29, 2023 PROJECT PROJECT BUDGET EXPENSES TO DATE PROJECT STATUS 15 Packery Channel Revetment Repair Storm surge, strong currents, and waves from Hurricane Harvey caused damage to the slope protection and adjacent appurtenances along the banks of Packery Channel between the SH 361 bridge and the Gulf of Mexico. Repair concepts will be developed for two alternatives; one to return the project to its approximate pre -storm conditions, and another to upgrade the project to ar improved condition that is more resilient to future storm impacts. The City will procure a design consultant through the RFQ process, and the selected firm will prepare the construction plans. Post design, construction will be procured. Added 2/13/18 $600,000 $4,000,000 for construction as stated in FY 2020 Budget $417,027 Preliminary Engineering Report Complete. In permitting and design phase. 16 Park Road 22 Bridge On February 21, 2017, the TIRZ #2 board met and approved the amendment of using funds from TIRZ #2 to support the construction of two one-way bridges spanning Park Road 22. City Council approved this amendment on February 20, 2018. In April 2017, the City Council approved the appropriation of $4M in TIRZ #2 funding for the contruction of PR 22 Bridge. A Developer Agreement for PR22 Bridge was approved by City Council on April 23, 2019. After re -bidding the construction contract in October 2019, the lowest bid was $13,943,536 and the budget shortfall totals $2,884,815.66. $4,000,000 11/12/2019 Add'I $2,884,815.66 $0.00 In progress. 17 Beach Crosswalk at St. Augustine & Windward Dr. Per request of the Island Strategic Action Committee: Traffic improvement on Windward Drive at Saint Augustine Drive, for pedestrian crossing on Windward Drive to facilitate access to and from Michael J. Ellis Beach. Scope of work includes: crosswalk, access ramps, traffic signs, and pavement markings. Estimated costs are $23,000 for the crossing and associated traffic improvements; $9,000 for solar powered flashing LED crossing signs. $32,000 $0.00 Completed February 19. 18 Feasibility Study Per Texas Tax Code Sec. 311.011. Project and Financing Plans. (c) Reinvestment zone financing plans must include (3) a finding that the plan is economically feasible and an economic feasibility study. $50.000 $3,045 Complete 19 Contingency For All Projects Project contingency fund for all projects. $100,000 20 Improvements to R. Briscoe Kind Pavilion This project consists of infrastructure improvements to the R. Briscoe King Pavilion, which will be proposed by Nueces County and approved by the City Council prior to transfer of funds. $4,000,000 21 Whitecap PID Public Infrastructure This project consists of reimbursement to a developer for qualified public infrastructure included in the Whitecap PID project. Qualified infrastructure includes bridges, a walking trail, and a water exchange, which will all be publicly accessible. $11,500,000 22 Multi-Moblity Study This project consists of the creation of a a multi -mobility plan for the TIRZ #2 that considers connectivity for golf carts and bicycles throughout the TIRZ #2 boundary. $150,000 page 3 of 3 8/11/2023 Exhibit I City of Corpus Christi - Budget Reinvestment Zone No. 2 Fund 1111 Account Number Account Description Actuals 2020 - 2021 Original Budget 2021 - 2022 Amended Budget 2021-2022 Estimated 2021 2022 Proposed 2022-2023 300020 300050 300060 300110 300140 300150 300210 300240 300250 340900 11305 55000 55010 55040 60010 Beginning Balance Revenues: RIVZ#2 current taxes -City RIVZ#2 current taxes -County RIVZ #2 current taxes -Hospital RIVZ#2 delinquent taxes -City RIVZ#2 delinquent taxes -County RIVZ#2 delinqnt taxes -Hospital RIVZ#2 P & I - City RIVZ#2 P & I - County RIVZ#2 P & I -Hospital District Interest on Investments TOTAL REVENUES Total Funds Available Expenditures: TIF02 Activities Principal retired Interest Paying agent fees Transfer to General Fund TOTAL EXPENDITURES $ 1,763,794 $ 4,515,879 $ 2,703,483 1,293,788 465,860 6,090 296 (360) 27,444 13,270 4,797 4,772 $ 3,055,011 1,454,622 528,613 22,000 8,000 3,000 26,000 12,500 7,000 5,000 $ 4,463,933 $ 3,055,011 1,454,622 528,613 22,000 8,000 3,000 26,000 12,500 7,000 5,000 $ 4,463,933 $ 3,114,436 1,478,461 533,023 25,152 9,346 3,782 27,836 13,353 5,630 22,095 $ 7,945,795 $ 4,519,438 $ 5,121,746 $ 5,121,746 $ 5,233,114 $ 6,283,232 $ 9,637,625 $ 9,585,679 $ 9,697,047 $ 7,945,795 $ 1,500 $ 1,555,000 142,200 5,544 115,056 1,605,000 72,225 6,000 71,051 1,605,000 72,225 6,000 71,051 1,605,000 72,225 2,976 71,051 $ 1,819,300 $ 1,754,276 $ 1,754,276 $ 1,751,252 $ Gross Ending Balance $ 4,463,933 $ 7,883,349 $ 7,831,403 $ 7,945,795 $ 7,945,795 Bond Reserve $ 1,500,000 $ 1,500,000 $ 1,500,000 $ 1,500,000 Maintenance Reserve 500,000 500,000 500,000 500,000 500,000 Net Ending Balance $ 2,463,933 $ 5,883,349 $ 5,831,403 $ 5,945,795 $ 7,445,795 Notes: Reinvestment Zone #2, commonly referred to as Packery Channel was created pursuant to the Tax Increment Financing Act to facilitate development of the land within the boundaries of the tax increment zone. The Zone became effective on November 14, 2000. The funding source is post -2000 incremental property taxes from taxing units with property within the boundaries of the zone. Total project cost was $30 million of which the City was responsible for 35% or $10.5 million. This was financed through tax increment contract revenue bonds. An additional $1.4 million was needed to repair the damages to Packery Channel caused by Hurricane Rita and Hurricane Emily. This brought the total amount financed by the City to $12 million in four debt issuances. 195 A MARKET AND ECONOMIC FEASIBILITY STUDY UPDATE Tax Increment Reinvestment Zone #2 Corpus Christi, Texas 00.19.3 0.6 0.9 1.2 Miles Prepared for: The City of Corpus Christi Economic Development Office P.O. Box 9277 Corpus Christi, Texas 78469-9277 July 2019 Prepared by: COMMUNITY DEVELOPMENT STRATEGIES Economic Study Update — TIRZ 2 Corpus Christi, Texas TABLE OF CONTENTS Table of Contents Table of Exhibits iii Economic and Demographic Overview 1 Regional Economic Trends 1 Employment trends 1 Regional Economy 5 Corpus Christi Economy 6 Hurricane Harvey 10 Demographic Trends 12 Corpus Christi MSA 12 Regional Demographics 13 City of Corpus Christi 14 Employment 16 Housing Trends Comparisons 18 TIRZ #2 Demographics 21 TIRZ Employment 23 Household Income 24 Real Estate Market Overview 26 Corpus Christi MSA 26 Single Family Residential 26 Multifamily 26 Retail 27 Office 28 Corpus Christi Overall 30 Single Family Residential 30 Multifamily 32 Retail 35 Office 41 Island Markets 44 Island Residential 44 Multifamily 45 Retail 47 Office 54 Tourism and Hospitality 54 Island Development Trends 56 New Development In Process 58 Impacts on Island Development 60 Plan CC Comprehensive Plan (September, 2016) 60 CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Regional Parkway PEL, March 2017 62 Metropolitan Transportation Plan 2015 - 2040 64 Schlitterbahn New Ownership 64 Potential Demand 68 Single Family Residential Demand 68 TIRZ Demand for Single Family 68 Multifamily Demand 69 TIRZ Demand for Multifamily 69 Retail Development Demand 70 TIRZ Demand for Retail 70 Office Development Demand 70 TIRZ Office Demand 71 Hotel and Tourism 71 Property Account and TIRZ Value Analysis 72 New Development Projections — Quantities and Values 72 Projected TIRZ 2 Increment and Revenue 76 TIRZ 2 Recommendations 78 CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas TABLE OF EXHIBITS Figure 1: Map of Corpus Christi MSA 1 Figure 3: Corpus MSA Employment Wages by Industry 2 Figure 5: 2018 Top Industries in the Coastal Bend Region 4 Figure 6: Corpus Christi MSA Job Growth 5 Figure 7: Corpus Christi Employment By Industry (in thousands) 6 Figure 8: Corpus Job Growth 7 Figure 9: Corpus Area 2017 Investment in Economy 8 Figure 10: Projected Additional Tax Revenues 9 Figure 11: MSA Map 12 Table 1: Corpus Christi MSA Demographic Overview 13 Table 2: City of Corpus Christi Population and Household Trends 14 Table 3: Population and Age Trends — City of Corpus Christi Total 15 Table 4: Educational Attainment 15 Table 5: Corpus Christi Household Income 16 Table 6: City Employment 16 Table 7: City Population and Employment Forecasts 17 Table 8: Housing Trends 18 Figure 12: TIRZ #2 21 Figure 13: TIRZ Street Map View 21 Table 10: Population and Age Trends in TIRZ #2 22 Table 11: TIRZ #2 Household Characteristics 23 Table 12: TIRZ Employment 23 Table 13: Household Income Distribution 24 Table 14: TIRZ #2 vs. Corpus Christi Incomes 25 Figure 14: MSA Home Sales and Average Price 26 Figure 15: MSA Multifamily Trends 27 Figure 16: MSA Retail Trends 28 Figure 17: MSA Office Trends 29 Figure 18: Median Home Price Trends 30 Figure 19: Corpus Inventory by Price Range 30 Figure 20: Corpus Days to Sell 31 Figure 21: Multifamily Trends 32 Figure 22: Multifamily Rent Trends 33 Figure 23: Units Under Construction 34 Figure 24: Corpus Christi Retail 35 Figure 25: Retail Forecasts 36 Figure 27: Corpus Retail Trends 37 Figure 29: Retail Under Construction 37 CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Table 15: Household Effective Buying Income 39 Figure 30: Corpus Christi Office Overview 41 Figure 31: Corpus Christi Office Trends and Forecasts 42 Figure 32: Corpus Christi Office Trends 42 Figure 33: Office Under Construction 43 Table 18: Median Home Sale Prices 44 Table 19: Island Residential Sales 44 Figure 34: Island Multifamily Trends 2014-2018 45 Table 20: Island Multifamily Supply 46 Table 21: Island Retail Supply 48 Table 22: Household Effective Buying Income 50 Table 26: Island Office Supply 54 Table 27: MSA Historical Hotel Trends 78418 55 Table 29: Island Building Permit Trends 56 Table 30: TIRZ Commercial Development Permits 57 Figure 37: Regional Parkway PEL 63 Figure 38: New Schlitterbahn Ownership 66 Table 31: City Projections 68 Table 32: City 68 Table 33: TIRZ Single Family Demand 69 Table 34: City Multifamily Demand 69 Table 35: TIRZ Multifamily Demand 69 Table 36: City Retail Demand 70 Table 37: TIRZ Retail Demand 70 Table 38: City Office Demand 71 Table 39: TIRZ Office Demand 71 Table 40: Projected TIRZ 2 New Development Quantities 73 Table 41: Projected TIRZ 2 New Development Assessed Values 74 Table 42: Projected TIRZ 2 Taxable Value ($) 76 Table 43: Projected TIRZ 2 Assessed Value Increment ($) 77 Table 44: Projected TIRZ 2 Revenue ($) 78 cos Economic Study Update — TIRZ 2 Corpus Christi, Texas INTRODUCTION Community Development Strategies (CDS) was asked by the City of Corpus Christi to examine the market conditions and assessed value trends in the existing TIRZ #2 (North Padre Island TIRZ), which is currently set to expire in 2022, and project new development and value increases that would likely occur if the zone's life is extended on a long-term basis (perhaps 20 years). Based on the findings herein, CDS will provide a documented assessment concerning the revenue projections for TIRZ #2, including the potential for future development and re -development of various properties and commercial land uses that exist or could be planned for the proposed Zone in its existing and potentially expanded boundaries. Such land uses will likely include: • Multifamily residential (for sale or rent) • Single family residential (for sale or rent) • Retail / Commercial • Lodging / hospitality / hotel CDS will make special consideration for the role of second home and investor ownership patterns in the residential market and the impacts of Hurricane Harvey damage on market potential and assessed values. ECONOMIC AND DEMOGRAPHIC OVERVIEW Regional Economic Trends The Corpus Christi Metropolitan Statistical Area (MSA) includes Aransas, Nueces and San Patricio Counties, illustrated in the map on the right. The city of Corpus Christi is the economic center of the MSA and the larger region served by the Coast Bend Council of Governments. The region currently has a population of 460,669 and an employment of 211,341. Employment trends The employment growth of the region has been positive. The table below illustrates the historical unemployment rates. As shown in Figure 2, Corpus Christi MSA is currently at 4.4% which is slightly above Texas (3.5%) and the U.S. (3.9%). Figure 1: Map of Corpus Christi MSA CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Figure 2: Corpus Christi MSA Unemployment Rates March 2009-2019 aassao 0124 el el el el CI _4 7-1 11 1°011 g 111 Texas II US Corpus Christi i s A Figure 3 below illustrates wages by industry. Government had the highest wages by industry at 379.28 million at 3Q2018. Figure 3: Corpus MSA Employment Wages by Industry Wages by Industry (in millions) (3rd Quarter 2018) 'cta55'ie= 51.41 Government $31928 Omer Services $42.96 N Leisure and Hospitality $124.33 Education and Health Services 5325.80 Professional and Business Services 5249.03 Nd'_31 NPscur'_es an® Mining 510181 { Constructlo%$319.91 r Source: Texas Real Estate Center/Texas Workforce Commission, April 2019 Manufacturing $169.02 Trade, Transportation am Unties $339.02 J(' inforrnabon 921.15 Financial Activthes $108.65 Figure 4 illustrates the employment by selected economic sectors. The largest sectors are Trade/Transportation, Government, and Education/Health Services. Followed by "Mining" and "Leisure and hospitality". Sectors that saw growth from 2017 to 2018 were Manufacturing, Professional Services, Education and Health, and Financial Activities. The sectors in the Corpus Christi MSA that have seen negative job growth were Mining and Trade/transportation. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Figure 4: Employment By Industry Employment by Industry (March 2019) Government 18.1% Ogler Servleas 3.2% Wass and Hospitality 13.3% td,neg, I.ogg r'g and Conseuclon 12 5' Education and Health Services 16 6% hlar.ulactur,ng 4 4', Trade, Transportation. and Utrletes 16 9% Information 0 8% Fn anal Activities 4.3% Professional and Business Services 9.8% Employment by Industry (March 2019) Industry Total Nonfarm Current Month Employment 194.300 % Monthly Change 0.0`, % Yearly Change 0.5% Mining, Logging and Construction 24,300 -1.6% -6.5% Manufacturing 8.500 -2.3% 4.9% Trade, Transportation, and Utilities 32,900 0.0% -0.6% Information 1.600 0.0% 0.0% Financial Activities 8,300 0.0% 2.5% Professional and Business Services 19.000 -3.1% 3.3% Education and Health Services 32,300 0.0% 2.9% Leisure and Hospitality 25,900 3.6% 1.6% Other Services 6,300 1.6% 1.6% Government 35,200 0.6% 0.6% i Source: Texas Real Estate Center/Texas Workforce Commission, April 2019 CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas The table below lists the major employers in the Corpus Christi MSA. Government agencies (local and military) and health care institutions dis-proportionately represent the major employers in the region. Figure 5: 2018 Top Industries in the Coastal Bend Region Corpus Christi Independent School District 5,944 Naval Air Station Corpus Christi 4,500 H.E.B. Stores & Bakery 3,840 CHRISTUS Spohn Hospital 3,400 Corpus Christi Army Depot 3,400 City of Corpus Christi 3,202 Driscoll Children's Hospital 2,136 Corpus Christi Medical Center 1,885 Kiewit Offshore Servivces 1,750 Bay Ltd. 1,700 Del Mar College 1,500 Nueces County 1,440 Flint Hills Resources 1,200 Texas A&M University - Corpus Christi 1,180 Turner Industries 1,100 Valero Bill Greehey Oil Refinery 800 Kane Beef Processors LLC 750 CITGO 550 Source: Corpus Christi Regional Economic Development Corporation, Regional Profile, August, 2018 CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Regional Economy The Corpus Christi regional economy has two strong underpinnings: 1) a strong industrial base and 2) a healthy tourism industry. According to a recent report from the Corpus Christi Housing Overview/Fed Reserve Bank of St Louis, the regional employment has grown consistently since 2016. Regional Unemployment rate is returning to its oil boom levels around 5%. Local growth factors to the region include $50 billion in industrial construction projects underway and the new Harbor bridge construction, adding 5,171 jobs in 2018 alone. Future economic growth in the Corpus Christi region is expected to be less dependent on the oil and gas sectors and be generated by: • the expansion of trade through the Port, • becoming a center for alternative energy sources (stimulated by the wind energy research activities being proposed for the area), • tourism, and • a burgeoning retirement community CDS s 4 3 0 -1 -2 .4 Figure 6: Corpus Christi MSA Job Growth Regional Employment Y -o -Y % Change Aransas —Corpus Christi MSA (Seasonally Adjusted) 2011 2012 201.3 2014 2015 2016 2017 Graphics From: Corpus Christi Housing Overview; Real Estate Center at Texas A&M University and Federal Reserve Bank of St Louis Regional Unemployment (%) 11 10 9 7 6 5 4 3 —Corpus Christi MSA (Seasonally Adjusted) 2010 2011 2012 2013 2014 2015 2016 2017 Capital Development Pro.ects' Impacts 2018 2019 2020 2021 20 Construction Employment Change (Job Years) Harbor Bridge Industrial Projects Permanent Employment Change Manufacturing Sector Total Jobs 598 578 352 3,914 7,284 3,306 751 43 659 363 25 80 520 5,171 8,225 3,683 831 563 Economic Study Update - TIRZ 2 Corpus Christi, Texas Corpus Christi Economy Depressed energy prices did not completely weaken the job market in Corpus Christi. Large employers and consistent growth in major industries such as government and education and health services stabilized the metro's economy and made it less susceptible to economic hardships caused by the oil industry. The Naval Air Station, CHRISTUS Spohn Health System, and the Corpus Christi Independent School District are the three largest employers here. All in all, after job growth ended in 2015, it has since rebounded slightly, though total employment in Corpus Christi has remained relatively flat since then, even with the rebound in energy prices. Much of this can be attributed to the fact that Corpus was one of the hardest hit during Hurricane Harvey last year. The Port of Corpus Christi is going through a period of transformation. Since the downturn of the oil industry, the metro's tenant base has diversified to include an Austrian steel company Voestalpine and an $11 billion export terminal for Cheniere LNG is currently under construction. Port officials are also planning a project to make the port's channel 52 feet deep and 530 feet wide, making it able to accommodate almost any size ship. This is all part of an effort to keep the Port of Corpus Christi among the leading ports in the country. Additionally, there has been a subtle return of energy related companies, as Flint Hills Resources and a subsidiary of Occidental Petroleum Group have recently moved to the Port of Corpus Christi. Figure 7: Corpus Christi Employment By Industry (in thousands) Current Jobs Current Growth 10 Yr Historical 3 Yr Forecast VACS Industry Jobs LQ Market US Market US Market US Manufacturing 8 0.5 -2.50% 2.08% -3.01% -0.26% -021% -1.41% Trade, Transportation and Utilities 33 0.9 -0.39% 1.19% 0.05% 0.74% 0.89% 0.16% Retail Trade 21 1.0 -1.45% 0.43% 0.06% 0.57% 0.79% 0.20% Financial Activities 8 0.7 1.91% 1.41% -0.34% 0.58% 1-14% 0.60% Government 34 1.2 -0.16% 0.30% -0.11% -0.07% 0.40% 0.53% Natural Resources, Mining and Construction 28 2.7 6.41% 4.32% 1.81% 0.43% 2.39% 1.29% Education and Health Services 32 1.0 2.04% 2.10% 1.22% 2.08% 1.94% 1.02% Professional and Business Services 18 0.6 1.12% 2.56% 0.46% 1.94% 2.09% 1.24% Information 2 0.5 -4.83% -0-45% -3.66% -0.59% 0.85% 0.07% Leisure and Hospitality 25 1.2 -0-92% 1-67% 1.66% 2.11% 2.08% 1.04% Other Services 7 0.9 -0.53% 1.25% -0.03% 0.70% 1-00% 0.22% Total Employment 193 1.0 0.99% 1.69% 0.46% 0.97% 1.43% 0.58% Source: Moody's Analytics LQ = Location Quotient Source: CoStar Corpus Christi Economy As shown in Figure 7 above, job growth is forecasted to continue in Corpus Christi but at a lower rate over the next five years as compared to historical trends. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Figure 8: Corpus Job Growth YEAR OVER YEAR JOB GROWTH -2 % -3% ,. 1 1 1' l i l I l l I I 1, I,., 1, 1. 1..,+ 1 4 1,. 4, 1 1 4 1 1 1 4 2012 2013 2014 2015 2016 2017 2018 i 2019 2020 2021 2022 ■ Corpus Christ • Untied States CCREDC 2017 Annual Report reported over $30 billion in capital investments with a net of 2,172 jobs created. The largest investment was GCGV (ExxonMobil/SABIC) at $9.65 billion with 640 full-time jobs. The most recent successes from the report are outlined on the following page. cos Economic Study Update — TIRZ 2 Corpus Christi, Texas Figure 9: Corpus Area 2017 Investment in Economy MOST RECENT SUCCESSES: $30,221,900,000 I* TOTAL CAPITAL INVESTMENT 2,172 JOBS • SWC Group*$1 million*75 full time jobs GCGV (ExxonMobil/ SABIC) $9.65 BILLION Total Capital Investment *640+ Full Time Jobs Over $60 million in annual payroll • Envirotech Carriers*$500,000*10 full time jobs • Radiology Associates*$6 million*112 full time jobs • BASF*$55 million*20 full time jobs • Chemours*$230 million445 full time jobs • Rangeland Energy*$100 million*50 full time jobs • Results*$100,000*200 full time jobs • Adler Scaffolding*$2 million*150 full time jobs • Tex-Isle*$50 million0100 full time jobs • Oxy Petroleum*$100 million*30 full time jobs • Gravity Midstream*$200 million*25 full time jobs • QSR Online♦$400,000 *27 full time jobs • Govind Development*$2.1 million4206 full time jobs • Cheniere*$19 billion*500 full time jobs • CC Cold Storage♦$2.4 million*10 full time jobs • Occidental Petroleum*$58.5 million*61 full time jobs • LyondellBasse110$500 million418 full time jobs • Epic Y Grade*$200 million*10 full time jobs Source: CCREDC 2017 Annual Report cos Economic Study Update — TIRZ 2 Corpus Christi, Texas Figure 10: Projected Additional Tax Revenues Generated from New Regional Projects * School Districts Municipalities Community Colleges Counties Other Districts Taxing Entity Nueces County Hospital District 2017 - 2024 2027 - 2034 $998,247,217 $3,702,205,157 $95,126,411 $176,621,237 $24,860,349 $47,840,219 $471,533,167 $2,136,842,132 $27,634,171 $50,766,063 10 Yea r $61,290,751 20 Year $117,081,426 $27,634,171 $50,766,063 City of Corpus Christi Nueces School Districts Del Mar College Type A Effect San Patricio County San Patricio School Districts $95,126,411 $176,621, 237 $270,782,559 $502,393,510 $24,860,349 547,840,219 $26,385,763 $47,944,853 $410,242,416 52,019,760,706 $727,464,658 $3,199,811,647 These tax revenues are net of any incentives offered. Assumed the time to complete schedule doesn't move appreciatively. City of Corpus Christi includes the industrial district payments Source: CCREDC 2017 Annual Report; no explanations are provided in the report. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Hurricane Harvey The National Weather Service reported on Thursday August 24th, 2017 Harvey's impact on the Middle and Upper Texas Coast seemed almost certain and potentially devastating. Not only was Harvey forecast to become a hurricane by Thursday evening, but it was expected to strengthen and make landfall as a major hurricane (Category 3 or higher) on Friday. Although the eye of Harvey made landfall around 30 miles northeast of the city of Corpus Christi, strong and damaging wind gusts were experienced away from the center of circulation at the Corpus Christi International Airport and in the city as well as other locations. The Corpus Christi International Airport had a 63 mph gust before it went offline. The Victoria RAWS station had a peak gust of 83 mph. Much higher wind gusts did occur in the city of Corpus Christi, as the Doppler radar showed velocities of 70 mph or more, just a few hundred feet off the surface. Rockport and Fulton were hardest hit by the storm as they took a direct hit from Harvey's eyewall. Many structures, residences, and business in and near the Rockport and Fulton area were damaged or destroyed, as roofs were blown off and walls collapsed. Electricity and water services were lost. The city's infrastructure was crippled. Significant structural damage also occurred in numerous other coastal town including Port Lavaca, Copano Village, Aransas Pass, Port Aransas and Ingleside. Tens of thousands of South Texas residents and businesses lost power for days, with the hardest hit areas likely losing power for several weeks. Although there was a significant number of trees, fences and power poles down or damaged in the Corpus Christi Metropolitan area, structural damage was much more isolated. The storm surge from Harvey brought dramatically increased water and tide levels over the Texas Coast. The highest maximum storm tides were observed at the Aransas Wildlife Refuge, where the storm surge levels were more than 12 feet above ground level. Storm surge in Port Lavaca was also more than 10 feet and at least 6 feet in Port Aransas. Elsewhere across South Texas, storm tide levels were from near 3 to 6 feet above ground level at Seadrift, Port O'Connor, Holiday Beach, Copano Bay, Port Aransas, and Bob Hall Pier. After causing deadly and damaging winds and floods to South Texas, and catastrophic, historical, devastating, and life-threatening flooding over Southeast Texas, Harvey finally made its final landfall near Cameron, Louisiana during the overnight hours on Wednesday August 30tH According to the Economic Pulse (Texas A&M University CC/South Texas Economic Development Center) In the Corpus Christi metro area, the cities of Port Aransas, Aransas Pass, Rockport, Ingleside, Sinton, Taft, Portland and Gregory issued mandatory evacuation orders beginning the morning of one day before Harvey's landfall. The City of Corpus Christi issued voluntary evacuation. Other than the public and personal expenditures involved in evacuation, most businesses were closed and industrial facilities like oil refineries were shut down for an average of one week. In this case, the economic impact includes the temporary disruption to the area's economic activity, which can be measured by lost output and wage earnings. This transitory impact is due to a loss of customer base, personnel disruptions, and disruptions to the transportation network and supply chain. As opposed to flood waters in other parts of Texas, wind gusts and storm surge were the primary sources of damage. Strong winds tore off roofs, exterior walls and fences, demolished mobile homes, snapped or uprooted trees, and damaged power lines, business facilities and public infrastructure. In addition to houses and buildings, storm surge caused damage to boats, piers and vehicles. Within two weeks of Harvey's landfall in the Coastal Bend, scientists at Texas A&M University -Corpus Christi began flying Unmanned Aircraft Systems (UAS), commonly known as drones, over the hardest hit areas. The application of UAS technologies, particularly Digital Surface Models, generated more detailed and CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas accurate information about damage to individual properties than conventional satellite or aerial images. The surveillance data suggest that the equivalent of 43% of structures were destroyed or uninhabitable in Rockport and other parts of Aransas County. The corresponding share was 26% for Port Aransas. Property damages in other parts of the metro area were relatively modest and scattered. The recovery period will last for years or even decades, depending on how soon capital stock is restored and how fast businesses bounce back to their pre -disaster conditions and take advantage of post -disaster market opportunities. The local economy will reach a new equilibrium in the long run, which could even be above the pre -disaster level. Corpus Christi Damage Assessment (CC Caller Times, Aug. 2017): • Annaville/Calallen: Widespread power outages and tree limbs downed but little property damage • Downtown: Some businesses damaged, letters ripped off Wells Fargo building, downed trees, signs down. • Padre Island: Tree debris in roadways, some sign damage on businesses, fences down, some roof damage. • Northside: little serious property damage, downed trees and power lines. • Ocean Drive/Texas A&M University -CC: Several downed trees blocked lanes on parts of Ocean and in neighborhoods off Ocean and near the university; at least two metal light poles in medians downed; Oso Pier and at least one private pier behind a house washed out; early assessment is minimal damage at the university. • North Beach: Several downed trees in the road. Able to navigate roadways easily. No flooding. Some street signs knocked down. • Flour Bluff: Fences downed, some signs down, some structural damage. • Westside: minimal damage, debris in roadways, downed trees and limbs, damaged fences and business signs. • Southside: minimal property damage, widespread power outages early on, debris in roads, downed trees. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas DEMOGRAPHIC TRENDS Corpus Christi MSA The MSA includes Aransas County, Nueces County and San Patricio County. Figure 11: MSA Map Corpus Port Aransas Christi CornuBay s Chrro CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Regional Demographics The table below illustrates some recent demographic trends for the Corpus Christi MSA. Demographic data in this report is from PCensus for Mapinfo, which is a reseller of Claritas, Inc. demographic data. According to PCensus estimates, over the past 8 years since the 2010 census, the region has added 32,484 persons (7.5%) and 14,985 households. The region is 60.8% Hispanic. Table 1: Corpus Christi MSA Demographic Overview MSA Population 2023 Projection 486,108 2018 Estimate 460,669 2010 Census 428,185 Growth 2018-2023 5.52% Growth 2010-2018 7.59% Growth 2000-2010 6.18% 2018 Est. Population by Single -Classification Race 460,669 White Alone 81.16% Black or African American Alone 3.65% American Indian and Alaska Native Alone 0.67% Asian Alone 1.94% Native Hawaiian and Other Pacific Islander Alone 0.10% Some Other Race Alone 9.80% Two or More Races 2.68% 2018 Est. Population Hispanic or Latino by Origin 460,669 Not Hispanic or Latino 39.12% Hispanic or Latino 60.88% Households 2023 Projection 182,821 2018 Estimate 172,004 2010 Census 157,019 Growth 2018-2023 6.29% Growth 2010-2018 9.54% Growth 2000-2010 10.90% Source: PCensus for Mapinfo, Tetrad Computer Applications, 2018 CDS Economic Study Update —TIRZ 2 Corpus Christi, Texas City of Corpus Christi The City of Corpus Christi has, within the municipal boundaries, almost three fourths of the residents of the region with a current estimated population of 330,925. Population has grown by 8.42% since 2010, compared to 7.59% in the Region. Table 2: City of Corpus Christi Population and Household Trends Source: PCensus for Mapinfo, Tetrad Computer Applications, 2018 The table on the following page illustrates the historical and expected future population by age group. The City's growth from 2010 to 2018 has been substantial (25,710 added). The population of the City is getting slightly older with most of the change occurring in the 25 to 34 age group, followed by 65 to 74. CDS Corpus Christi Population 2023 Projection 350,127 2018 Estimate 330,925 2010 Census 305,215 2000 Census 277,552 Growth 2018-2023 5.80% Growth 2010-2018 8.42% Growth 2000-2010 9.97% Households 2023 Projection 132,238 2018 Estimate 124,221 2010 Census 112,843 2000 Census 98,922 Growth 2018-2023 6.45% Growth 2010-2018 10.08% Growth 2000-2010 14.07% Source: PCensus for Mapinfo, Tetrad Computer Applications, 2018 The table on the following page illustrates the historical and expected future population by age group. The City's growth from 2010 to 2018 has been substantial (25,710 added). The population of the City is getting slightly older with most of the change occurring in the 25 to 34 age group, followed by 65 to 74. CDS Economic Study Update - TIRZ 2 Corpus Christi, Texas Table 3: Population and Age Trends - City of Corpus Christi Total Age Group 2000 Census 2009 Estimate Some High School, no diploma 2018 Estimate Change Count 277,454 Share Count 287,168 Share Count 330,925 Share 2000- 2009 9,714 2009- 2018 43,757 Total Population Age 0 to 4 21,544 7.8% 22,243 7.8% 22,509 6.80% 699 266 Age 5 to 9 21,592 7.8% 21,518 7.5% 22,439 6.78% -74 921 Age 10 to 14 21,487 7.7% 20,809 7.3% 22,814 6.89% -678 2,005 Age 15 to 17 13,439 4.8% 12,521 4.4% 14,204 4.29% -918 1,683 Age 18 to 20 13,329 4.8% 12,791 4.5% 14,078 4.25% -538 1,287 Age 21 to 24 16,058 5.8% 16,567 5.8% 19,030 5.75% 509 2,463 Age 25 to 34 37,792 13.6% 37,792 13.1% 48,243 14.58% 0 10,451 Age 35 to 44 43,275 15.6% 36,898 12.9% 42,844 12.95% -6,377 5,946 Age 45 to 54 36585 13.2% 40,716 14.2% 38,679 11.69% 4,131 -2,037 Age 55 to 64 21,551 7.7% 31,472 10.9% 39,692 11.99% 9,921 8,220 Age 65 to 74 16,944 6.1% 17,541 6.1% 27,500 8.31% 597 9,959 Age 75 to 84 10,533 3.8% 11,561 4.0% 13,153 3.97% 1,028 1,592 Age 85 and over 3,325 1.2% 4,739 1.7% 5,740 1.73% 1414 1,001 Age 16 and over 208,504 75.2% 218,504 76.1% 258,508 78.12% 10,000 40,004 Age 18 and over 199,392 71.9% 210,077 73.2% 248,959 75.23% 10,685 38,882 Age 21 and over 186,063 67.1% 197,286 68.7% 234,881 70.98% 11,223 37,595 Age 65 and over 30,802 11.1% 33,841 11.8% 46,393 14.02% 3,039 12,552 Median Age 33.2 34.8 35.5 1.6 0.7 Average Age 34.7 36.2 37.5 1.5 1.3 Source: PCensus for Mapinfo Tetrad Computer Applications, 2018 Approximately 20.9% of the Corpus Population holds a bachelor's degree or higher; 1% have a Doctorate degree. Table 4: Educational Attainment 2018 Est. Pop Age 25+ by Edu. Attainment 215,851 16,597 Less than 9th grade Some High School, no diploma 23,619 High School Graduate (or GED) 61,670 Some College, no degree 50,761 Associate Degree 17,981 Bachelor's Degree 29,693 Master's Degree 10,888 Professional School Degree 2,352 Doctorate Degree 2,290 Source: PCensus for Mapinfo, Tetrad Computer Applications, 2018 The median household income in the City is $55,063. Approximately 23% of the households earn over $100k per year. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Table 5: Corpus Christi Household Income 2018 Est. Households by HH Income 124,221 15,720 12.65% Income < $15,000 Income $15,000 to $24,999 13,796 11.11% Income $25,000 to $34,999 11,754 9.46% Income $35,000 to $49,999 16,335 13.15% Income $50,000 to $74,999 22,245 17.91% Income $75,000 to $99,999 16,376 13.18% Income $100,000 to $124,999 10,303 8.29% Income $125,000 to $149,999 6,191 4.98% Income $150,000 to $199,999 6,034 4.86% Income $200,000 to $249,999 2,474 1.99% Income $250,000 to $499,999 2,278 1.83% Income $500,000+ 715 0.58% 2018 Est. Average Household Income $73,029 7,293 2018 Est. Median Household Income $55,063 1,373 Source: PCensus for Mapinfo, Tetrad Computer Applications, 2018 Employment Approximately 53% of the Corpus Christi population is employed in white collar jobs. Table 6: City Employment 2018 Est. Civ. Employed Pop 16+ by Occupation Architect/Engineer 156,199 2,299 1.47% Arts/Entertainment/Sports 1,584 1.01% Building Grounds Maintenance 8,224 5.27% Business/Financial Operations 4,875 3.12% Community/Social Services 2,296 1.47% Computer/Mathematical 1,377 0.88% Construction/Extraction 12,396 7.94% Education/Training/Library 8,393 5.37% Farming/Fishing/Forestry 279 0.18% Food Prep/Serving 12,241 7.84% Healthcare Practitioner/Technician 9,084 5.82% Healthcare Support 4,387 2.81% Maintenance Repair 7,293 4.67% Legal 1,373 0.88% Life/Physical/Social Science 789 0.51% Management 12,519 8.01% Office/Admin. Support 19,357 12.39% Production 9,522 6.10% Protective Service 4,383 2.81% Sales/Related 18,294 11.71% Personal Care/Service 5,567 3.56% Transportation/Moving 9,667 6.19% cos Economic Study Update — TIRZ 2 Corpus Christi, Texas 2018 Est. Pop 16+ by Occupation Classification 156,199 Blue Collar 38,878 24.89% White Collar 82,240 52.65% Service & Farm 35,081 22.46% Source: PCensus for Mapinfo, Tetrad Computer Applications, 2018 Population and Employment Forecasts for City of Corpus Christi According to the MPO the next update will be the later part of 2019. The principal point of these forecasts is that they demonstrate long-term growth rates consistent with past trends — continued slow to moderate growth. The MPO did extract the population/employment forecast numbers for 2040 for the traffic analysis zones (TAZ) that make up the city of Corpus Christi. This is an estimate as TAZs and do not precisely align with the city boundary. The MPO study area is the full two counties, Nueces and San Patricio, and a small sliver of Aransas county. CDS Table 7: City Population and Employment Forecasts 2040 Corpus Christi MPO Study Area Population 361,570 576,182 Employment 185,223 258,558 Source: Corpus Christi Metropolitan Planning Organization, May 2019 Economic Study Update — TIRZ 2 Corpus Christi, Texas Housing Trends Comparisons The TIRZ includes the largest percentage of renter -occupied units (47.1%) and the shortest average length of residency compared to the City and the MSA. The TIRZ median value is significantly higher at $285,575 and the units are comparatively newer. As shown, the TIRZ as well as the other areas are owner -occupied dominated market. The TIRZ has significantly more multifamily (condos, townhomes) than the City or MSA which is dominated by single family residential. Table 8: Housing Trends Owner -Occupied Renter -Occupied sing Units by Tenure 2018 Occupied Housing Units: A' Residence (by years) Owner -Occupied Renter -Occupied 201 ' cupied Housing Units by Value Less than $20,000 Value $20,000 to $39,999 Value $40,000 to $59,999 Value $60,000 to $79,999 Value $80,000 to $99,999 Value $100,000 to $149,999 Value $150,000 to $199,999 Value $200,000 to $299,999 Value $300,000 to $399,999 Value $400,000 to $499,999 Value $500,000 to $749,999 Value $750,000 to $999,999 Value $1,000,000 to $1,499,999 Value $1,500,000 to $1,999,999 Value $2,000,000 or more TIRZ #2 634 335 299 5 3 335 10 2 2 19 13 19 29 73 45 29 45 26 17 4 1 $285,575 52.83% 47.17% 3.07% 0.60% 0.46% 5.68% 3.94% 5.62% 8.69% 21.88% 13.39% 8.77% 13.55% 7.91% 5.00% 1.23% 0.22% City of Corpus Christi 124,221 74,098 50,123 12 3 74,098 1,594 2,556 4,373 6,944 9,239 17,637 13,007 11,013 3,459 1,773 1,435 538 241 79 210 $134,241 59.65% 40.35% 2.15% 3.45% 5.90% 9.37% 12.47% 23.80% 17.55% 14.86% 4.67% 2.39% 1.94% 0.73% 0.33% 0.11% 0.28% 172,004 108,402 63,602 12 3 108,402 3,304 5,454 7,838 10,251 12,178 22,541 18,182 15,765 5,864 2,913 2,286 944 442 176 264 $132,685 63.02% 36.98% 3.05% 5.03% 7.23% 9.46% 11.23% 20.79% 16.77% 14.54% 5.41% 2.69% 2.11% 0.87% 0.41% 0.16% 0.24% 1,529 137,078 198,404 1 Unit Attached 20 1.30% 2,692 1.96% 3,302 1.66% 1 Unit Detached 266 17.39% 90,181 65.79% 133,767 67.42% 2 Units 54 3.51% 4,220 3.08% 5,940 2.99% 3 or 4 Units 58 3.77% 10,404 7.59% 12,385 6.24% 5 to 19 Units 415 27.15% 16,732 12.21% 20,148 10.16% 20 to 49 Units 183 11.98% 3,368 2.46% 4,070 2.05% CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas 50 or More Units Mobile Home or Trailer Boat, RV, Van, etc. Housing Units Built 2014 or Later Housing Units Built 2010 to 2013 Housing Units Built 2000 to 2009 Housing Units Built 1990 to 1999 Housing Units Built 1980 to 1989 Housing Units Built 1970 to 1979 Housing Units Built 1960 to 1969 Housing Units Built 1950 to 1959 Housing Units Built 1940 to 1949 Housing Units Built 1939 or Earlier Source: PCensus for Mapinfo TIRZ #2 City of Corpus Christi 475 38 21 50 or More Units 1,529 162 57 244 220 595 201 38 9 3 0 1989 31.08% 2.48% 1.34% 10.59% 3.71% 15.93% 14.40% 38.91% 13.12% 2.49% 0.62% 0.20% 0.01% 5,888 3,224 369 1 Unit Detached 137,078 9,668 2,103 16,807 14,969 22,481 21,879 16,510 21,252 8,035 3,374 1979 4.30% 2.35% 0.27% 7.05% 1.53% 12.26% 10.92% 16.40% 15.96% 12.04% 15.50% 5.86% 2.46% MSA 6,726 11,346 720 1 Unit Detached 198,404 13,518 3,114 27,781 22,752 32,461 33,784 23,522 26,260 10,422 4,790 1980 3.39% 5.72% 0.36% 6.81% 1.57% 14.00% 11.47% 16.36% 17.03% 11.86% 13.24% 5.25% 2.41% The above is an estimate, while the table below is the last confirmed data set in 2010. As shown the estimated 2018 includes 1,529 housing units compared to 1,195 in 2010, a 27.9% increase. The 2018 estimate also shows an increased in owner -occupied units, now at 52.8% over the 44% in 2010. Table 9: 2010 TIRZ#2 Housing Trends 2010 Estimated Tenure of Occupied Housing Units Owner -Occupied Renter -Occupied 2010 Occupied Housing Units, Average Length of Residence - years Owner -Occupied Renter -Occupied 2010 Estimated All Owner -Occupied Housing Units by Value 739 j 105,022 151,812 327 44.19% :. 62,910 412 55.81% 42,112 59.90% 95,541 62.93% 40.10% 8 16 5 327 Less than $20,000 0 $20,000 to $39,999 6 56,271 37.07% 16 6 62,910 95,541 0.00% 1,380 2.19% 4,058 7 2.07% 3,825 6.08% 8,192 0.97% 7,436 11.82% 12,231 12.80% 16 5.00% 9,407 14.95% 13,073 13.68% $40,000 to $59,999 3 $60,000 to $79,999 CDS 4.25% 8.57% Economic Study Update — TIRZ 2 Corpus Christi, Texas $80,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 to $299,999 $300,000 to $399,999 $400,000 to $499,999 $500,000 to $749,999 $750,000 to $999,999 $1,000,000 or more 2010 Estimated Median Owner -Occupied Housing Unit Value 2010 Estimated Housing Units by Units in Structure 1 Unit Attached 1 Unit Detached 2 Units 3 or 4 Units 5 to 19 Units 20 to 49 Units 50 or More Units Mobile Home or Trailer Boat, RV, Van, etc. Dominant structure type 2010 Estimated Housing Units by Year Structure Built 2000 or Later 1990 to 1999 1980 to 1989 1970 to 1979 1960 to 1969 1950 to 1959 1940 to 1949 1939 or Earlier 2010 Estimated Median Year Structure Built** CDS 23 6.95% 9,021 14.34% 12,081 ? 12.64% 74 22.67% 18,177 28.89% 25,438 59 17.97% 6,050 9.62% 8,824 9.24% 89 27.15% 4,728 7.52% 7,023 30 9.16% 1,570 2.50% 2,339 2.45% 13 3.91% 558 0.89% 915 5 1.47% 493 0.78% 842 0.88% 0 0.03% 140 0.22% 284 9 2.63% 125 0.20% 241 0.25% 26.63% 7.35% 0.96% 0.30% $184,320 $101,062 $96,913 1,195 8 0.65% 117,077 4,440 3.79% 331 27.68% 76,724 65.53% 5 0.41% 2,606 2.23% 29 2.39% 6,708 5.73% 564 47.20% 16,076 13.73% 172 14.36% 2,551 2.18% 83 6.93% 4,440 3.79% 0 0.00% 3,282 2.80% 5 0.40% 250 0.21% 5 to 19 units 1,195 1 Unit Detached 176,779 5,385 117,904 4,425 8,789 20,044 3,065 5,721 10,849 597 1 Unit Detached 3.05% 66.70% 2.50% 4.97% 11.34% 1.73% 3.24% 6.14% 0.34% 117,077 354 29.66% 12,735 10.88% 292 24.41% 12,470 10.65% 275 23.02% 21,230 18.13% 211 17.67% 19,893 16.99% 32 2.71% 16,475 14.07% 23 1.88% 20,060 17.13% 0 0.00% 9,903 8.46% 8 0.64% 4,311 3.68% 1992 1974 176,779 21,437 21,463 31,742 31,918 24,646 25,862 13,023 6,688 1976 12.13% 12.14% 17.96% 18.06% 13.94% 14.63% 7.37% 3.78% Economic Study Update — TIRZ 2 Corpus Christi, Texas TIRZ #2 Demographics In the previous 2009 report, only 908 persons resided in the area designated for TIRZ #2 shown below. According to the PCensus estimates, that number has increased to 1,218 as of 2018. Figure 13: TIRZ Street Map View CDS Economic Study Update - TIRZ 2 Corpus Christi, Texas The population in TIRZ #2, as illustrated in the table below, has a marked lack of children and overall lack of population under the age of 18. This population makes up only 13.65% of the total population in TIRZ #2, while this group comprises 24.76% of the population of the City of Corpus Christi overall. The TIRZ also has a higher share of persons over age 65. Table 10: Population and Age Trends in TIRZ #2 Age Group 2000 Census 2009 Estimate 2018 Estimate Change Number 908 Share Number 1,196 Share Number 1,218 Share 2000 2009 288 2009- 2018 22 Total Population Age 0 to 4 29 3.2% 34 2.9% 43 3.54% 5 9 Age 5 to 9 22 2.5% 40 3.4% 46 3.75% 18 6 Age 10 to 14 25 2.8% 37 3.1% 44 3.65% 12 7 Age 15 to 17 22 2.5% 17 1.4% 33 2.71% -5 16 Age 18 to 20 30 3.3% 16 1.4% 31 2.53% -14 17 Age 21 to 24 87 9.55% 43 3.6% 51 4.18% -44 8 Age 25 to 34 168 18.5% 209 17.4% 213 17.47% 41 4 Age 35 to 44 139 15.3% 201 16.9% 170 13.99% 62 -31 Age 45 to 54 155 17.0% 214 17.9% 145 11.91% 18 -69 Age 55 to 64 101 11.3% 188 15.7% 195 16.01% 87 7 Age 65 to 74 88 9.7% 107 8.9% 162 13.29% 19 55 Age 75 to 84 39 4.3% 72 6.0% 67 5.53% 33 -5 Age 85 and over 1 0.2% 18 1.5% 18 1.44% 17 0 Age 16 and over 826 91.0% 1,080 90.3% 1,074 88.20% 254 -6 Age 18 and over 808 89.1% 1,068 89.3% 1,052 86.36% 260 -16 Age 21 and over 779 85.8% 1,052 88.0% 1,021 83.83% 273 -31 Age 65 and over 129 14.2% 196 16.4% 247 20.27% 67 51 Median Age 40.3 45.0 43.7 4.7 -1.3 Average Age 41.1 44.7 44.1 3.7 -.06 Source: PCensus for Mapinfo, Tetrad Computer Applications, 2009; 2018 The table on the following page illustrates household characteristics for TIRZ #2 compared with the City of Corpus Christi. The overwhelming majority of households in the TIRZ district being one-person and two -person households further illustrates of the lack of children in the TIRZ. In fact, the share of 3 and 4 -person households in the City of Corpus Christi greatly exceeds households in the TIRZ. CDS Economic Study Update - TIRZ 2 Corpus Christi, Texas Table 11: TIRZ #2 Household Characteristics Households by mikaimChristi Household Size Count Share Count Share Households 634 6 124,221 4 1 person 255 40.27% 32,997 26.56% 2 persons 260 40.95% 38,377 30.89% 3 persons 61 9.66% 21,553 17.35% 4 or more persons 57 9.13% 31,294 25.20% Average HH Size 1.92 Food Prep/Serving 2.61 2.29% Source: PCensus for Mapinfo, Tetrad Computer Applications, 2018 TIRZ Employment There are 624 employees in the TIRZ, 68.7% are white collar workers. The largest cohort of workers are employed in Management followed by Sales/Related. Table 12: TIRZ Employment 2018 Est. Civ. Employed Pop 16+ by Occupation Architect/Engineer 624 % 0.94% 6 Arts/Entertainment/Sports 4 0.58% Building Grounds Maintenance 54 8.73% Business/Financial Operations 19 3.12% Community/Social Services 3 0.51% Computer/Mathematical 24 3.87% Construction/Extraction 39 6.29% Education/Training/Library 66 10.54% Farming/Fishing/Forestry 1 0.13% Food Prep/Serving 14 2.29% Healthcare Practitioner/Technician 51 8.17% Healthcare Support 27 4.28% Maintenance Repair 12 1.90% Legal 21 3.42% Life/Physical/Social Science 12 1.88% Management 90 14.37% Office/Admin. Support 55 8.85% Production 5 0.80% Protective Service 5 0.85% Sales/Related 78 12.56% Personal Care/Service 4 0.70% Transportation/Moving 33 5.24% Blue Collar 89 14.24% White Collar 429 68.78% Service & Farm 106 16.98% CDS Economic Study Update - TIRZ 2 Corpus Christi, Texas Household Income These tables illustrate the household income characteristics of the area in the TIRZ district and the City of Corpus Christi. According to the PCensus estimates, household incomes in the TIRZ area are significantly greater than the amount as the city as a whole. This may be due to the increasing number of affluent retirees living in the TIRZ. Table 13: Household Income Distribution TIRZ #2 vs. Corpus Christi TIRZ #2 2000 Count 521 Share 2009 2018 Count 677 Share Count I 634 Share Total Households Less than $15,000 86 16.6% 109 16.1% 17 2.67% $15,000 to $24,999 51 9.7% 70 10.3% 26 4.18% $25,000 to $34,999 78 15.1% 91 13.5% 49 7.68% $35,000 to $49,999 97 18.7% 129 19.1% 64 10.17% $50,000 to $74,999 102 19.5% 125 18.5% 176 27.79% $75,000 to $99,999 55 10.6% 75 11.1% 88 13.83% $100,000 to $149,999 24 4.7% 39 5.8% 68 10.6% $150,000 to $244,999 21 4.1% 30 4.5% 99 15.5% $250,000 to $499,999 6 1.1% 7 1.0% 35 5.54% $500,000 or more CORPUS CHRISTI Total Households 1 0.2% 1 104,275 0.2% 12 124,221 1.95% 98,779 Less than $15,000 19,524 19.8% 17,241 16.5% 15,720 12.65% $15,000 to $24,999 14,684 14.9% 13,290 12.8% 13,796 11.11% $25,000 to $34,999 13,319 13.5% 12,869 12.3% 11,754 9.46% $35,000 to $49,999 16,639 16.8% 16,429 15.8% 16,335 13.15% $50,000 to $74,999 17,987 18.2% 19,825 19.0% 22,245 17.91% $75,000 to $99,999 8,734 8.8% 11,007 10.6% 16,376 13.18% $100,000 to $149,999 5,159 5.2% 9,302 8.9% 16,494 2.41% $150,000 to $244,999 1,873 1.9% 2,831 2.7% 8,508 6.85% $250,000 to $499,999 614 0.6% 1,039 1.0% 2,278 1.83% $500,000 or more 246 0.3% 442 0.4% 715 0.58% Source: PCensus for Mapinfo, Tetrad Computer Applications, 2018 CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas This table includes a comparison of average and median household income for the two geographies. The TIRZ average household income has increased 57% over the last 18 years while the City of Corpus Christi income increased only 18.9% over the same time period. Table 14: TIRZ #2 vs. Corpus Christi Incomes Measure Geography 2000 2009 2018 Average household income --- TIRZ #2 $69,976 $57,359 $109,927 City of Corpus Christi $61,407 $57,050 $73,029 Median household income --- TIRZ #2 $53,460 $42,983 $72,760 City of Corpus Christi $46,734 $42,978 $55,063 Source: PCensus for Mapinfo, Tetrad Computer Applications CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas REAL ESTATE MARKET OVERVIEW Corpus Christi MSA Single Family Residential Home sales and prices in the MSA have increased significantly since 2009 (the last TIRZ update). At 2017, there were 5,197 home sales with an average price of $219,516 compared to 3,763 sales in 2009 with an average price of $161,655. The prices have increased 35.7% over the past eighteen years. Figure 14: MSA Home Sales and Average Price 5k 320k 4_5k 3k 1 5 0 �O A� gti °li oiD. �c, oir° °l'l a9 nn 00 O� 01 O^, OA 05 00O'1 O$ Ooi �O "s\ �y �S � `c' N� �1 � `� `g 1. ,ti0 ,LO ,LO 1O „O 1. 1 1. 1. 19 19 19 19 19 19 19 19 Sales - Average Price Source: Texas A&M Real Estate Center 240k 160k 2 80k 0 • At 3Q2018, the MSA sales volume increased 21.2% to 1,537 transactions. • Median price increased 6.5% year -over -year to $199,700. • 2018 Q3 months inventory for all residential properties fell 7.3% year -over -year to 5.7 months. • Metro area residential property listings decreased 2.6% year -over year to 2,581 active listings. Multi -family According to CoStar, December 2018, the MSA multifamily market includes 34,972 apartment units. The vacancy rate is 9.6%. There are 543 units under construction. Rents are fairly strong with positive absorption (on average over the past 5 years, 523 units absorbed annually). Figure 15 on the following page illustrates the trends. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Figure 15: MSA Multifamily Trends Leasing Units Survey 5 -Year Avg Inventory in Units Survey 5 -Year Avg Vacant Units 3,287 2,682 Existing Units 34.972 32.170 Vacancy Rate 9.6% 8.4% 12 Mo. Const. Starts 332 841 12 Mo. Absorption Units 705 523 Under Construction 543 1,399 12 Mo. Deliveries 631 859 Rents Survey 5 -Year Avg Sales Past Year 5 -Year Avg Studio Asking Rent $882 $856 Sale Price Per Unit $124264 $86,919 1 Bed Asking Rent $839 $804 Asking Price Per Unit 584,972 $43.507 2 Bed Asking Rent $996 $954 Sales Volume (Mil.) 5155 $94 3+ Bed Asking Rent $1,105 $1,051 Cap Rate 7.1% 7.6% Concessions 2.5% 1.9% Vacancy Rate 12 % 10% 51.10 Asking Rent Per SF 51.15 8% S1 05 6% 4 % 51.00 2% • • • • • • 5095 '• • • 14 15 16 17 18 14 15 16 17 18 Absorption Units 1.500 1.000 500 0 Retail 500 • • • • • • • 13 14 15 16 17 18 Source: CoStar, December 2018 The MSA includes 27,164,684 square feet of retail space. The vacancy rate is low at 2.9% with rents at $13.25psf. There is 68,566 square feet under construction. Absorption has been positive with 265,349sf on average over the past five years as shown in Figure 16. CDS Economic Study Update— TIRZ 2 Corpus Christi, Texas Figure 16: MSA Retail Trends Vacancy Rate NNN Asking Rent Per SF 6 % $14 $13 $12 1% 4 . 4 • 4 • $11 14 15 16 17 18 14 15 16 17 18 5% 4% 3% 2% Net Absorption 400 Thousands SF 200 13 11 15 1E 17 18 Source: CoStar, December 2018 Office The MSA office market includes 11,115,241 square feet in 861 buildings. The vacancy rate is 7.7% with rents at $13.50psf. There is 50,000sf under construction. Absorption has been negative over the past 12 months (-134,099) but positive over the past five years (66,060). CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Vacancy Rate 10 % 8% 6% 4% Figure 17: MSA Office Trends Gross Asking Rent Per SF $17 $16 $15 $14 e + + 313 + ♦ + + 14 15 16 17 18 14 15 16 17 18 Net Absorption 400 Thousands SF 200 0 -200 + + + + + 13 14 15 16 17 18 CDS Source: CoStar, December 2018 Economic Study Update — TIRZ 2 Corpus Christi, Texas Corpus Christi Overall Corpus Christi enjoyed strong economic growth from 2010-2014, thanks to the energy industry. Oil prices have fallen since then, bruising the economy. With the addition of about 5,300 jobs from 1604-1704, the unemployment rate has improved to 5.2%, from 6.2% at year-end 2016. Plus, median household income and population gains, while still growing, slowed down significantly, according to the latest report from the Texas A&M Real Estate Center. Single Family Residential At 302018, median price in the Corpus Christi metro increased by approximately 6.5% year -over - year, from $188,000 to $199,700 (Figure 18). Metro area price lagged the statewide median price of $235,000 by $35,300. Metro area months inventory (number of homes available) decreased year -over -year from 6.12 to 5.68 months (Figure 19). Homes between $150k and $200k fell year -over -year, from 4.79 to 4.1 months, while homes between $200k and $250k fell year -over -year, from 6.61 to 5.14 months and homes between $100k and $150k fell year -over - year, from 4.03 to 3.44 months. Figure 18: Median Home Price Trends 5240.000 5220.000 S200.000 S180.000 Comparative Metro Area Median Price 2018 2017 2018 Metro Name - Corpus Christi - Texas Source: Texas A&M Real State Center Figure 19: Corpus Inventory by Price Range Metro Area Months Inventory in Three Most Active Price Ranges S100k < 5150k $150k < $200k 5200k < 5250k 8 6- 2016 2018 Source: Texas A&M Real State Center cos 2016 2018 2016 2018 30 Economic Study Update — TIRZ 2 Corpus Christi, Texas Average days to sell throughout the metro area fell from 122 to 111 days, a decrease of 9% year -over - year. Average days to sell for homes between $150k and $2O0k decreased by approximately 9.2% year - over -year, from 109 to 99 days as shown on Figure 20. 100 0 CDS Figure 20: Corpus Days to Sell Metro Area Days to Sell 122 123 130 119 111 201703 201704 2010Q1 2010Q2 ■ Days on Market a Days to Close Source: Texas A&M Real Estate Center, 2018 201803 31 Economic Study Update — TIRZ 2 Corpus Christi, Texas M ultifamily Multifamily vacancies reached their cyclical high earlier in 2017, about 400 basis points above the historical average due to the overall economic climate. More recently, Hurricane Harvey and the subsequent increase in demand for rental housing have improved fundamentals. Residents displaced by flooding and damage to both single-family and multifamily housing units have turned to apartments. In turn, rent growth one month after the storm was significant and nearly erased all of 2016's losses, and vacancies have fallen four percentage points since reaching a peak last year (Figure 21). Figure 21: Multifamily Trends ABSORPTION, NET DELIVERIES 8 VACANCY Absorption & Net Delivered Unita 700 600 500 400 300 200 100 0 -100 -200' 4*1+C11 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Source: CoStar Forecast irte,,,. •�""�' 896 1 5 % 4„ 11,1,1, „y11,41114,114C1i4,4% • Absorption • Net Oetivenes • Vacancy Unrted States Vacancy Currently the Corpus Christi Multifamily market includes 29,757 units. Vacancy is at 8.7%. The past 12 months have shown a positive absorption of 662 units (427 per yr on average over the past 5 years). At around $960/month, rents in Corpus Christi are relatively affordable. Median household incomes here are about $50,000, meaning that average rents will absorb about 20% of income (more than 30% is considered hardship). While rent growth continuously outpaced the national average earlier this cycle, gains have slowed recently, and even fell during 2017. With hurricane rebuilding efforts well on their way, occupancies have increased, giving landlords more pricing power as of late. Rents are up nearly 2.5% as of mid-September (2018). CDS Economic Study Update - TIRZ 2 Corpus Christi, Texas Figure 22: Multifamily Rent Trends DAILY ASKING RENT PER SF S1.13 51.12 $1.11 $1.10 51.09 $1.08 $1.07 $1.06 $1.05 S1.04 1 1, 1 1 1 2015 MARKET RENT PER UNIT & RENT GROWTH 11111 2016 X11 MI Corpus Ch sb 111111111111 2017 2018 Rent Per Unit $1,600 $1,500 $1,400 $1,300 $1,200 $1.100 1IIIbiiiiiIi 11111 I_ $1,000 5900 $800 2013 2014 2015 2016 Forecast 111111 IIiJii 6% 5% 4% 3% 2% 1% 0% -1 % -2 % 1 , , I . , , y , 1 , , , I ' I , „ t ' 3 % 2017 2018 2019 2020 2021 2022 • Market Rent Growth Y V • Market Rent Per Unrt ■ Effective Rent Per Unit United States Market Rent Per Unrt Source: CoStar giomue )uOJ tenuuy As in most markets in Texas, developers have been active - inventory has expanded by nearly 10% since 2015. Construction has slowed dramatically, with fewer than 300 units underway as of mid-September. Lease up has been strong of late, with projects like the 4 -Star 288 -unit Vantage at Corpus Christi. Featuring amenities such as a clubhouse, pool, and full-sized fitness center, the Vantage has been leasing about 30 units per month, though that's certainly helped by people moving to temporary housing thanks to Hurricane Harvey. Another project not included with the CoStar data will be the just -announced (as of March 2019) 286 -unit Ariza Corpus Christi, on Cimarron Boulevard just northeast of Yorktown Boulevard. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Figure 23: Units Under Construction Under Construction Properties Properties Units Corpus Christi Multi Family Percent of Inventory Avg. No. Units 5 483 1.7% 97 UNDER CONSTRUCTION PROPERTIES lOP•Incaos Properly NasdAAdress 1 2 3 4 5 Rating Marquis at CalaNen 3805 FM 1889 * * * * * Manhattan Apartments -... 7001 Lipes Blvd * * * * * Northshore Place Apart.. 117 Northshore Blvd * * * * Shoeo 44 Apartments 817 N Carancahua St The Fountains 3201 Eleventh St * * * * * * * * * * Unita Stories 228 3 108 96 3 44 4 7 Start Complete Developerl0wner Realtex Development Corporation Realtex Development Corporation George Mostaghasi George Mostaghasi Silverfin Land Development LLC Silverfin Land Development LLC Stonewater Properties Inc Stonewater Properties Inc Nov -2017 Jan -2016 May -2017 Mar -2018 Jan -2019 Jan -2019 Jan -2019 Jan -2019 Nov -2016 Jan -2019 Note: Above list does not include Ariza Corpus Christi, Cimarron Blvd., 286 units. CDS Erol R Hanmore 34 Economic Study Update — TIRZ 2 Corpus Christi, Texas Retail Similar to those in other smaller Texas metros, Corpus Christi's retail market is on firm footing. Even through the oil -driven downturn of the last few years, vacancies continued to compress and hit cyclical lows in 2017. But despite occupancies near 97%, rent growth has remained tepid at best, and rents have only recently recovered from the downturn. While very little has come to market here in recent years, the 325,000 SF Outlets at Corpus Christi Bay opened in 17Q1, marking the first major delivery since 2011. Figure 24: Corpus Christi Retail Overview 12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate Corpus Christi Retail 12 Mo Rent Growth 158 K 176 K 2.9% 0.5% KEY INDICATORS Currant Quarter Under RBA Vacancy Rate Asking Rent AvaBabiity Rao Net Absorption Deliveries SFSF Construction Malls 2.391,596 0% 51825 0% 0 0 0 Power Center 354,751 0% S15-16 0% 0 0 0 Neighborhood Center 4,563,237 52% 514.82 6.3% 18,971 0 0 Strip Center 2214,894 4.0% 514.81 3.8% (7.593) 0 0 General Reiai 17.335,255 2.7% 51262 3.6% (41 904) 0 68,566 Other 293,978 0.5% 515.40 1.2% (.1 400) 0 0 Market 27,153,711 2.9% $13.73 17% (31,926) 0 68,566 st Annual Trends 12 Month A skorica� F C Peak When Trough When e ge Vacancy Change (YOY) -0.5% 5.5% 2.2% 8.0% 2007 04 2.8% 2018 CO Net Absaphon SF 176 K 293,059 172,815 777,632 2011 Q4 (264,194) 2009 Q3 Deliveries SF 158 K 216,120 124,840 661,349 2011 04 66,720 2013 01 Rent Growth 0.5% 0.6% 1.0% 2.6% 2016 03 -3.1% 2010 Q1 Sales Volume 5101 M 534.011 N/A 5126.3M 2008 04 $1.7M 2011 Q4 Source: CoStar Vacancies in Corpus Christi are tight, and net absorption has outpaced new deliveries every year this cycle despite 2017's tight race. This is especially true for malls and power centers, where vacant space is virtually nonexistent. Vacancies in neighborhood centers are higher, at about 5%. As for submarkets, Portland/Ingleside has maintained the highest vacancies, at above 6% as of December, while vacancies in the CBD were around 2%. The Island is not segregated in CoStar but combined with Corpus overall. Figure 25 illustrates the net absorption, deliveries, and vacancies over the past five years and forecasts going forward. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Figure 25: Retail Forecasts NET ABSORPTION, NET DELIVERIES & VACANCY 500 u. 400 300 200 • 100 0 n -100 Forecast 7% 6% 5% 4% c :.J 3% 2% 1% -200, , 1 , , , 1 , , , + , , , I , , .1 , „ , „ j , , .4 , „f 1 , , , 4 , , , 1 10 % 2013 2014 2015 2016 2017 2018 l 2019 2020 1 2021 2022 ■ Net Absorption • Net Delrvenes • Vacancy United States Vacancy Retail rents in Corpus Christi are among the lowest in Texas. At roughly $13/SF, rents here are lower than those in El Paso, McAllen, and Lubbock, and roughly in line with Beaumont's. Even though occupancies in Corpus are close to record highs, rent growth has lagged and rents are still only slightly above prerecession levels at about 400 basis points. The highest rents in the metro are in the South Side Submarket, which boasts average rents of more than $17/SF. 6% 4% 2% 0% -2 % -4 % Figure 26: Market Rent Growth 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ■ Mails • Neighborhood Center • General Retail • Other • Corpus Christ • United States ■ Power Center Strip Center CDS 36 Economic Study Update — TIRZ 2 Corpus Christi, Texas Corpus Christi has about 25 million SF of retail space, of which only about 2.5 million SF is part of a mall and roughly three million SF part of a neighborhood center. The metro has about 55 SF of retail per person, which is above the national average of 47 SF. Corpus' retail includes 21,187,093 square feet in 1,876 existing buildings. The vacancy rate is low at 2.4% with overall rents at $12.28 psf (NNN, not gross) — Figure 27. Over the past 5 years absorption has been positive at 161,946sf on average (Figure 28). Vacancy Rate 6% % 4% 3% 2% Figure 27: Corpus Retail Trends NNN Asking Rent Per SF $14 S13 1% . e • • $12 14 15 16 17 18 Source: CoStar 14 15 16 17 18 Figure 28: Absorption and Leasing Demand Survey 5 -Year Avg 12 Mo. Absorption SF 267,417 161,946 12 Mo. Leasing SF 385,435 275,796 From 2012-16, less than 500,000 SF of retail space came to market, representing less than 2% of the metro's total RBA. However, construction has picked up as of late, mostly due to this year's delivery of the first phase of the Outlets at Corpus Christi Bay (450,000 SF). That $70 million development, roughly 20 miles west of the city's center in Robstown, will add more than 150,000 SF in future phases scheduled to complete in 2019. Figure 29: Retail Under Construction Under Construction Properties Properties CDS Square Feet Percent of Inventory Corpus Christi Retail Preleased 5 68,566 0.3% 84.0% Economic Study Update — TIRZ 2 Corpus Christi, Texas UNDER CONSTRUCTION PROPERTIES UNDER CONSTRUCTION Property Name/Address 1 CarMax 7242 S Padre Island Dr Rakng Bldg 3F Sterids Start * * * * * 25,000 1 Jun -2018 2 Access Lincoln of Corpu... * * * * 3680 N Highway 77 3 4 5 2051 Rodd Field Rd. 2051 Rodd Field Rd 15402 S Padre Island Dr 5409 Ayers St Source: CoStar CDS Complete Developer/Owner Jan -2019 C a rM ax 15,000 1 Feb -2018 Jan -2019 * * * * * 11,000 1 Sep -2018 Aug -2019 Lithia Motors Inc 10,566 1 Jan -2018 Jan -2019 7 000 1 Jan -2018 Jan -2019 Dunridge LLC 38 Economic Study Update - TIRZ 2 Corpus Christi, Texas Corpus Christi and TIRZ Consumer Buying Power A critical factor in consideration for commercial retail development is the buying power of the market area that a potential development site is located in. Buying income can be measured by the level of disposable or expendable income from consumers in a market area. The City's effective buying income of $60,804, Table 15, on average per household is considered low compared to the TIRZ Effective Buying Income (EBI) at $91,194. CDS Table 15: Household Effective Buying Income Corpus Christi Category Number 124,221 % of Total Total Households EBI Less than $15,000 16,348 13.16% EBI $15,000 to $24,999 14,866 11.97% EBI $25,000 to $34,999 14,216 11.44% EBI $35,000 to $49,999 20,084 16.17% EBI $50,000 to $74,999 25,118 20.22% EBI $75,000 to $99,999 17,426 14.03% EBI $100,000 to $124,999 6,750 5.43% EBI $125,000 to $149,999 3,856 3.10% EBI $150,000 to $199,999 2,724 2.19% EBI $200,000 to $249,999 628 0.51% EBI $250,000 to $499,999 1,740 1.40% EBI $500,000 or more 465 0.37% 2017 Average Effective Buying Income $60,804 Source: US Census, American Community Survey, PCensus TIRZ 2 Category Number 634 % of Total Total Households EBI Less than $15,000 18 2.77% EBI $15,000 to $24,999 32 4.99% EBI $25,000 to $34,999 53 8.42% EBI $35,000 to $49,999 137 21.66% EBI $50,000 to $74,999 151 23.78% EBI $75,000 to $99,999 75 11.89% EBI $100,000 to $124,999 43 6.78% EBI $125,000 to $149,999 38 6.06% EBI $150,000 to $199,999 41 6.41% EBI $200,000 to $249,999 10 1.60% EBI $250,000 to $499,999 27 4.34% EBI $500,000 or more 8 1.30% 2017 Average Effective Buying Income $91,194 Source: US Census, American Community Survey, PCensus Economic Study Update — TIRZ 2 Corpus Christi, Texas Corpus Christi Retail Sales Trends 2017 appears to be the most profitable for the city, reaching levels above 2015. Some of this can be attributed to Hurricane Harvey repairs/rebuild. Quarter 1 and 2 of 2018 are all the data available currently. Table 16: Actual Retail Sales in Corpus Christi, 2015 to Q2 2018 NAICS NAICS Category 2015 2016 2017 Code 41/2 2018 441 Motor Vehicle & Parts Dealers $1,250,340,179 $1,252,776,262 $1,179,506,932 $604,053,655 442 Furniture & Home Furnishings 163,562,245 140,574,104 147,341,137 78,627,548 443 Electronics and Appliance Stores 102,975,649 92,869,019 100,284,462 50,154,177 444 Building Material & Garden Equipment 515,278,648 480,360,135 523,803,507 293,157,202 445 Food & Beverage Stores 904,154,233 907,876,591 951,087,357 505,623,498 446 Health & Personal Care Stores 255,964,112 269,462,043 248,485,263 114,243,904 447 Gasoline Stations 274,423,492 277,772,476 295,519,393 102,715,827 448 Clothing & Clothing Accessories 242,449,324 229,211,833 220,950,344 107,878,776 451 Sporting Goods, Hobby, Book, & Music 164,207,896 152,419,969 142,014,047 67,364,092 452 General Merchandise 841,873,499 823,604,645 835,623,522 409,387,887 453 Miscellaneous Store Retailers 213,816,171 181,073,542 190,065,188 99,630,233 454 Non Store Retailers 112,575,122 41,915,815 254,726,942 124,975,410 721 Accommodations 26,726,741 23,976,444 30,079,999 16,410,255 722 Drinking and Eating Places 815,821,353 767,547,816 786,884,938 415,623,894 Grand Total $5,884,168,664 $5,641,440,694 $5,906,373,031 $2,989,846,358 Source: Texas Compt oiler of Public Accounts for 2015-2018 Retail Surplus/Leakage Comparing 2017 actual sales (2018 not a complete year) to projected expenditures there is a surplus in all categories. The aggregate expenditure estimates for the City are lower in every category. This indicates that residents outside the City are shopping inside the City for these items. The category representing the highest surplus is Food and Beverage Stores which includes grocery stores. There are several large grocers in the City. There appears to be no leakage (consumers are not going out of Corpus to shop) in this market. Table 17: Comparison of Actual Sales with Expected Household Expenditures for Corpus Christi BUSINESS CATEGORY DESCRIPTION Motor Vehicle & Parts (441) Actual Sales 2017 Total Expenditures Demand Surplus or (Leakage) $601,441,150 $1,179,506,932 $578,065,782 Furniture and Home Furnishings Stores (442) $147,341,137 $33,263,259 $114,077,878 Food and Beverage Stores (445) $951,087,357 $343,745,931 $607,341,426 Health and Personal Care Stores (446) $248,485,263 $162,139,891 $86,345,372 Clothing and Clothing Accessories Stores (448) $220,950,344 $40,056,498 $180,893,846 Sporting Goods, Hobby, Book, and Music Stores (451) $142,014,047 $29,436,896 $112,577,151 General Merchandise Stores (452) $835,623,522 $364,662,817 $470,960,705 Accommodations (721) $30,079,999 $11,209,595 $18,870,404 Food Services and Drinking Places (722) $786,884,938 $590,499,051 $196,385,887 Source: Texas Comptroller of Public Accounts 2018, PCensus CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Office Unlike fellow Gulf Coast energy market's Houston and Beaumont, Corpus Christi's office market has held up relatively well through the oil bust. While Corpus Christi's economy and job market took a big hit in 2015-16, office occupancies remained resilient and rent growth was robust. In terms of fundamentals, the immediate outlook is strong, since job growth is back positive, and the rebuilding efforts post -Harvey are on track, with little in the immediate construction pipeline. While rent growth has slowed, there's room for optimism, as occupancies are approaching cycle -highs. Figure 30: Corpus Christi Office Overview Overview 12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate Corpus Christi Office 12 Mo Rent Growth 12K 21.9K 7.6% 2.8% KEY INDICATORS Current Quarter RBA Vacancy Rate Gross Asking Availability Rate Net Absorption Deliveries SF Under Rent SF Construction 4 & 5 Star 2,115,086 9.4% 521.12 9.4% 8,372 0 0 3 Star 4.394,030 9.7% 517.19 13.0% (115.130) 0 50,000 1 & 2 Star 4,650,653 4.9% 515.33 6.3% 93.788 0 0 Market 11,159,769 7.6% $17.16 9.5% (12,970) 0 50,000 Annual Trends 12 Month Historical Forecast peak When Trough When Average Average Vacancy Change (YOY) -0.3% 8.9% 6.9% 10.7% 2007 Q2 6.7% 201702 Net Absorption SF 21.9 K 57,886 82,019 360,774 2017 Q2 (156,028) 2011 02 Deliveries SF 12 K 50,576 52,538 228,340 201702 4,400 201504 Rent Growth 2.8% 1.5% 1.4% 7.2% 201502 5.2% 2010 01 Source: CoStar Large blocks of space are virtually nonexistent in Corpus Christi. As of December, 2018 there are only two contiguous spaces 25,000 SF or larger, and fewer than 10 spaces larger than 10,000 SF. Therefore, most office tenants seeking large blocks of space tend to opt for build -to -suits. CDS 1 -+ 1 Economic Study Update — TIRZ 2 Corpus Christi, Texas Figure 31: Corpus Christi Office Trends and Forecasts NET ABSORPTION, NET DELIVERIES & VACANCY 500 400 300 200 100 a 0 t. -100 -200 Forecast -300"I<<,I, 111„1, 1I„111„1111I, II1.1,I11lIt5% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ■ Net Absorption r Net Oewvenes ■ Vacancy United States Vacancy Corpus Christi is a small office market, with only about 11 million SF of office RBA. About 18% of the metro's inventory is considered 4 & 5 Star space, while the remainder is evenly divided between 3 Star and 1 & 2 Star assets. More than 40% of the metro's inventory is located in the CBD and almost all of Corpus's 4 & 5 Star stock is in the CBD as well. With 696 buildings and 10,381,287 square feet of office space Corpus has a vacancy rate of 7.6%. Gross rent on average is $13.62psf. The 12 -month absorption was negative at (121,419sf) however, the 5 -year average was a positive 58,548 annually. Vacancy Rate 10 % 9% 8% 7% % Figure 32: Corpus Christi Office Trends Gross Asking Rent Per SF $17 516 515 $14 5% • • c • • $13 ► • s • 14 15 16 17 18 14 15 16 17 18 CDS Demand Survey 5 -Year Avg 12 Mo. Absorption SF -121,419 58,548 12 Mo. Leasing SF 282,112 306,086 42 Economic Study Update — TIRZ 2 Corpus Christi, Texas There is 50,000sf under construction in two buildings. The buildings are 100% pre -leased. Figure 33: Office Under Construction UNDER CONSTRUCTION PROPERTIES IP tear ca time.. UNDER CONSTRUCTION Property Name/Address 501 S Shoreline Blvd Rating Bldg SF Stories Start Complete Developer/Owner * * 40,000 Mar -2018 Apr -2019 2 S Staples St * * * * * 10,000 1 Mar -2018 Jan -2019 L Golden Real Estate & Constructio. . CDS 43 Economic Study Update - TIRZ 2 Corpus Christi, Texas Island Markets Island Residential In 2009, The Corpus Christi Association of realtors provided CDS 1 Spillette with data from the Multiple Listing Service (MLS) for 2007 through year to date 2009 for North Padre Island (both TIRZ and non-TIRZ areas). Table 18: Median Home Sale Prices North Padre Island Year 2007 2008 2009 YTD Median Closing Price $231,000 $232,500 $192,500 Change $1,500 -$40,000 Source: Corpus Christi Association of Realtors The data, as presented in the table to the left show that the median closing prices for the time period indicated a significant shift in pricing for 2009. At 2018, local realtors from Coastline Properties, Coldwell Banker, and Padre Escapes along with local appraiser Rick Sowash provided data on the North Padre real estate market to CDS. Interior SFR have shown the most appreciation over the past ten years at 32.9%, followed by Water SFR at 28.4%. Table 19: Island Residential Sales Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Interior SFR Av: Price # Sold DOM $197,000 $185,196 $186,260 $186,286 $215,451 $220,374 $252,305 $246,177 $258,633 $261,802 77 91 86 118 128 126 104 144 147 180 31 84 96 91 147 120 119 99 128 110 Water SFR Avg Price # Sold DOM $344,923 $347,461 $352,965 $370,500 $397,758 $440,169 $425,113 $446,713 $440,527 $442,789 73 109 113 115 136 130 104 138 134 121 138 164 144 143 152 129 129 162 137 119 Interior Condo/Townhome Av: Price # Sold DOM $146,328 $116,227 $120,026 $156,551 $152,700 $165,294 $146,389 $191,713 $170,707 $174,845 46 35 27 88 26 27 22 71 39 50 93 154 81 100 127 248 176 154 153 180 Water Condo/Townhome Avg Price # Sold DOM $162,265 $159,006 $135,745 $159,333 $169,951 $179,918 $187,222 $196,469 $198,246 $203,171 51 58 56 77 95 85 64 36 81 89 184 140 169 188 143 152 139 165 199 219 Sources: Coastline Properties, Coldwell Banker, and Padre Escapes CDS Economic Study Update —TIRZ 2 Corpus Christi, Texas Multifamily Figure 34: Island Multifamily Trends 2014-2018 There are 272 multifamily rental units on the island. Vacancy is at 7.1%. There are no Class A units in this market. The newest property was constructed in 2008, over ten years ago according to CoStar. Vacancy has been steadily increasing from 2015 to 2017. Recently, vacancy has decreased somewhat. Absorption has been fairly negative on the island over the past four years. Source: CoStar CDS Vacancy Rate 10 % 8% 6% 4 ° 2% 14 15 16 17 18 Absorption Units 10 5 0 -5 -10 13 14 15 16 17 18 43 Economic Study Update — TIRZ 2 Corpus Christi, Texas Table 20: Island Multifamily Supply Building Address 15301 -A -15301-C Bonasse Ct Building Name Building Class Number Of Units Vacancy % Year Built 2002 C 3 0 15302-101-15302-106 Bonasse Ct C 6 0 1985 15305 Bonasse Ct B 4 0 2003 15305 -A -15305-B Bonasse Ct C 2 2002 15306-201-15306-204 Bonasse Ct C 4 0 15309 -A -15309-C Bonasse Ct C 3 0 2001 15310 -A -15310-D Bonasse Ct C 4 0 2005 15313 -A -15313-D Bonasse Ct B 4 0 2001 15314 -A -15314-C Bonasse Ct B 3 0 2005 15317-1601-15317-1606 Bonasse Ct B 2 0 1999 15318 -A -15318-D Bonasse Ct B 8 12.5 1992 15322-601-15322-604 Bonasse Ct B 4 0 15325 -A -15325-D Bonasse Ct B 4 0 15325 -E -15325-H Bonasse Ct B 4 0 2001 15326-701-15236-704 Bonasse Ct B 4 0 15330-801-15330-804 Bonasse Ct B 4 0 15334-900-15330-1005 Bonasse Ct B 10 10 15337-1101-15337-1203 Bonasse Ct B 6 16.67 14418-101-14418-203 Cabana Shuffleboard Condominiums C 6 0 1985 14142E Cabana C 13 15.38 1983 14414E Cabana St C 2 0 14130-101-14130-106 Cabana East St B 6 16.67 14137-1-14137-4 Cabana East St B 4 0 14142-1-14142-4 Cabana East St B 13 7.69 1983 14402 -A -14402-F Cabana East St B 6 16.67 1992 14406-1-14406-6 Cabana East St B 6 16.67 1979 14409-1-14409-4 Cabana East St B 4 0 1998 14502-101-14502-203 Cabana East St B 6 16.67 14401 Commodores Dr Fairway Villas B 8 12.5 14427 -A -1-14427-B-18 Compass St C 18 11.11 14435 -A -14435-F Compass St B 6 14439-1-14439-13 Compass St B 14 7.14 15409 Fortuna Bay Dr B 18 11.11 1998 15125 Leeward Dr Lake Shore Villas B 16 6.25 15300 Leeward Dr B 16 6.25 14300 S Padre Island Dr B 20 10 14213 Sand Dollar Ave C 1 1966 15422 Seamount Cay Ct La Joya de la Costa B 13 0 cos 46 Economic Study Update — TIRZ 2 Corpus Christi, Texas Building Address Building Name Building Class Number Of Units Vacancy Year Built 15217 Windward Dr 2008 TOTAL/AVERAGES 275 5.52 1994 Although not reported by CoStar, Island realtors have indicated that 200 units are planned on the island by an undisclosed developer. Retail There are 56 retail/commercial buildings on the island with a total of 341,481 square feet. The vacancy rate is 2.5% with rents at $21NNN on average. Currently there is one 10,566 square feet of space under construction (Dollar General). Absorption has been mildly positive at 5740sf on average per year over the past five years. Vacancy Rate 6% 4 a% 2 Figure 35: Island Retail Trends NNN Asking Rent Per SF 526 524 522 520 518 0% • • 516 1 1 14 15 16 17 18 14 15 16 17 18 Net Absorption 10 20 CDS , 1 1 14 15 16 17 16 Source: CoStar 47 Economic Study Update - TIRZ 2 Corpus Christi, Texas Table 21: Island Retail Supply Building Address 14802 Compass St Building Name if Applicable Building Park if Applicable Building Status Rentable Building Area Percent Leased Year`' Built Existing 3,520 100 1998 14812 Compass St Existing 1,355 100 14814 Compass St Existing 1,530 100 1999 15241 Leeward Dr Existing 6,536 100 1986 14330-C Padre Island Dr Existing 2,750 100 1980 15541 Padre Island Dr Existing 1,290 100 1970 15817 Padre Island Dr S Existing 928 100 1970 13309 S Padre Island Dr Existing 301 100 13313 S Padre Island Dr Existing 1,004 100 2005 13313-B S Padre Island Dr Existing 237 100 13915-13947 S Padre Island Dr Day & Night Boardwalk Existing 10,000 100 1978 14005 S Padre Island Dr Existing 3,277 100 1994 14049 S Padre Island Dr Existing 8,111 100 1985 14201 S Padre Island Dr Existing 8,618 100 2005 14225 S Padre Island Dr Big Shell Plaza Existing 10,000 70 1984 14237 S Padre Island Dr Existing 4,065 100 1997 14245 S Padre Island Dr Loma Alta Plaza Existing 24,754 100 2007 14330 S Padre Island Dr Existing 21,155 75.63 2001 14401 S Padre Island Dr Existing 1,483 100 2002 14426 S Padre Island Dr Existing 7,190 100 2003 14457 S Padre Island Dr Padre Station Existing 7,901 100 2007 14493 -A -14493-I S Padre Island Dr Mail & More Plaza Existing 12,097 100 1996 14501 S Padre Island Dr Existing 7,772 100 2004 14514 S Padre Island Dr Existing 19,719 100 14517 S Padre Island Dr Existing 1,521 100 1983 14525 S Padre Island Dr Existing 11,578 100 2007 14601 S Padre Island Dr Existing 3,945 100 2000 14602 S Padre Island Dr Existing 5,078 100 1984 14613 S Padre Island Dr Existing 6,392 100 1995 14630 S Padre Island Dr Existing 2,727 100 1986 14633 S Padre Island Dr Existing 4,989 100 1983 14701 S Padre Island Dr Marina Plaza Marina Plaza Existing 4,667 100 2006 14805 S Padre Island Dr Existing 323 100 1993 14813 S Padre Island Dr Existing 2,233 100 1994 15101 S Padre Island Dr Existing 2,224 100 2000 15121 S Padre Island Dr Existing 2,475 100 2005 15125 S Padre Island Dr Existing 2,212 100 2006 15137 S Padre Island Dr 15217 S Padre Island Dr Existing 4,563 100 1988 Padre Professional Plaza Existing 16,203 100 2004 15233 S Padre Island Dr Stripes - Citgo Existing 3,180 100 1995 15302 S Padre Island Dr j Existing 16,773 100 2004 cup 48 Economic Study Update — TIRZ 2 Corpus Christi, Texas Building Address 15313 S Padre Island Dr Building Name if Applicable Building Park if Applicable Building Status Existing Rentable Building Area 4,531 Percent Leased 100 Year Built 15326 S Padre Island Dr North Padre Retail Center Existing 15,946 100 2008 15370 S Padre Island Dr Existing 7,514 100 15402 S Padre Island Dr Under Construc tion 10,566 100 2018 15605 S Padre Island Dr Existing 4,000 100 1990 15605-a S Padre Island Dr Existing 2,213 100 1990 15605-B S Padre Island Dr Existing 3,321 100 2001 15605-C 5 Padre Island Dr Existing 4,242 100 15715 S Padre Island Dr Tradewinds Business Center Existing 7,200 100 2004 15962 Palmira Ave Existing 6,328 100 14301 S Padre Island Dr Existing 2,296 100 1986 15137 SPID Dr Existing 3,366 100 1988 14414 Tx -361 Existing 3,357 100 1986 14430 Tx -361 Existing 5,000 100 1987 14414 Whitecap Blvd Existing 3,954 100 1992 15202-B Windward Dr Holiday Inn Existing 971 100 TOTAL/AVERAGES 341,481 99.05 1995 Source: CoStar CDS Economic Study Update - TIRZ 2 Corpus Christi, Texas TIRZ Consumer Buying Power As shown earlier in this report, the City's effective buying income of $60,804 on average per household is considered low compared to the TIRZ EBI at $91,194. CDS Table 22: Household Effective Buying Income City of Corpus Christi Category Number 124,221 % of Total Total Households EBI Less than $15,000 16,348 13.16% EBI $15,000 to $24,999 14,866 11.97% EBI $25,000 to $34,999 14,216 11.44% EBI $35,000 to $49,999 20,084 16.17% EBI $50,000 to $74,999 25,118 20.22% EBI $75,000 to $99,999 17,426 14.03% EBI $100,000 to $124,999 6,750 5.43% EBI $125,000 to $149,999 3,856 3.10% EBI $150,000 to $199,999 2,724 2.19% EBI $200,000 to $249,999 628 0.51% EBI $250,000 to $499,999 1,740 1.40% EBI $500,000 or more 465 0.37% 2017 Average Effective Buying Income $60,804 Survey, PCensus Source: US Census, American Community TIRZ 2 Category Number 634 % of Total Total Households EBI Less than $15,000 18 2.77% EBI $15,000 to $24,999 32 4.99% EBI $25,000 to $34,999 53 8.42% EBI $35,000 to $49,999 137 21.66% EBI $50,000 to $74,999 151 23.78% EBI $75,000 to $99,999 75 11.89% EBI $100,000 to $124,999 43 6.78% EBI $125,000 to $149,999 38 6.06% EBI $150,000 to $199,999 41 6.41% EBI $200,000 to $249,999 10 1.60% EBI $250,000 to $499,999 27 4.34% EBI $500,000 or more 8 1.30% 2017 Average Effective Buying Income $91,194 Source: US Census, American Community Survey, PCensus Economic Study Update — TIRZ 2 Corpus Christi, Texas Retail Sales Trends Zip Code 78418 includes the Island as well as the mainland area near the bridge. Sales for the zip indicates that 2016 had higher overall sales compared to 2014 and 2017. Motor Vehicles and Parts showed a significant increase in sales in 2016. Food and Beverage stores show the highest retail sales. This category includes grocery stores which are located on the mainland in the zip code. Table 23: Actual Retail Sales in 78418, 2015 to 2Q 2018 NAICS Code NAICS Category 2015 2016 2017 Q1/2 2018 441 Motor Vehicle & Parts Dealers 22,456,588 62,722,935 38,263,075 12,117,784 442 Furniture & Home Furnishings 1,285,595 1,060,777 1,023,515 354,838 443 Electronics and Appliance Stores 2,127,992 2,113,229 2,280,399 1,033,070 444 Building Material & Garden Equipment N/A 445 Food & Beverage Stores 107,783,682 109,877,975 119,606,377 66,926,032 446 Health & Personal Care Stores 10,530,417 10,669,152 10,649,472 447 Gasoline Stations 37,661,222 38,472,476 37,705,472 10,770,863 448 Clothing & Clothing Accessories 3,721,323 3,678,557 3,956,405 2,137,977 451 Sporting Goods, Hobby, Book, & Music 6,696,769 6,578,340 7,368,645 3,469,950 452 General Merchandise 64,481,599 65,793,124 68,093,933 34,124,660 453 Miscellaneous Store Retailers 6,701,435 5,890,635 5,379,046 2,493,606 721 Accommodations 1,803,774 883,539 1,285,067 1,150,162 722 Drinking and Eating Places 50,220,192 51,656,544 53,305,124 28,260,462 Grand Total 315,470,588 359,397,283 348,916,530 162,839,404 Source: Texas Comptroller of Public Accounts for 2015-2018 Retail Surplus/Leakage Comparing 2017 actual sales to projected expenditures there is a surplus in several categories. The aggregate expenditure estimates for the zip are lower in Food and Beverage Stores, Sporting Goods/Hobby/Book, and General Merchandise. This indicates that residents outside the zip are shopping inside the zip for these items (tourists). The category representing the highest surplus is Food and Beverage Stores which includes grocery stores. Leakage is occurring in this zip in Motor vehicles/Parts, Furniture/Furnishings, Clothing/Accessories, and Food Services. Where Leakage occurs, an opportunity is indicated in the market. The TIRZ could definitely benefit from these retailers. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Table 24: Comparison of Actual Sales with Expected Household Expenditures for ZIP 78418 BUSINESS CATEGORY DESCRIPTION Actual Sales 2017 Total Expenditures Demand 73,831,776 Surplus or (Leakage) (35,568,701) Motor Vehicle & Parts (441) 38,263,075 Furniture and Home Furnishings Stores (442) 1,023,515 6,787,756 (5,764,241) Food and Beverage Stores (445) 119,606,377 40,590,664 79,015,713 Health and Personal Care Stores (446) 10,649,472 19,700,266 (9,050,794) Clothing and Clothing Accessories Stores (448) 3,956,405 16,637,994 (12,681,589) Sporting Goods, Hobby, Book, and Music Stores (451) 7,368,645 3,831,046 3,537,599 General Merchandise Stores (452) 68,093,933 43,503,888 24,590,045 Food Services and Drinking Places (722) 53,305,124 72,059,023 (18,753,899) Source: Texas Comptroller of Public Accounts 2018, PCensus 78418 PRIZM Segments (Potential Rating Index for Zip Marketers) Psychographic analysis is used to identify consumer segments and match retail demand categories in the trade area. CDS has broken down the market area resident populations utilizing a consumer segmentation methodology. This system is used to understand and profile the population in the market area for the purpose of targeting the largest consumer lifestyle segments. Every household is defined in terms of 66 demographically and behaviorally distinct groups. Specific lifestyle segments will be quantified and ranked for the trade area. The top segments, described in this section, are correlated to likes, dislikes and purchase behavior relative to retail goods and services. The largest household segment in the Zip is White Picket Fences (13.9%) followed by Country Squires (10%). Table 25: Top 10 PRIZM Segments of the Population in the Competitive Market Area Households by PRIZM Segment Households % of Total Households 29 White Picket Fences 1,944 13.93% Residents in White Picket Fences look a lot like the stereotypical American household of a generation ago: upper -middle-class and married with children. But the current version reflects changing patterns, with some parents just beginning to start families while others approach the empty -nest stage as their children age. They enjoy reading, following sports, and DIY projects and crafts. 05 Country Squires 1,396 10.01% The wealthiest residents in exurban America live in Country Squires, an oasis for affluent Baby Boomers who've fled the city for the charms of small-town living. In their bucolic communities noted for their recently built homes on sprawling properties, the families of executives live in six -figure comfort. 36 Toolbelt Traditionalists 1,305 9.35% Like many other older segments, Toolbelt Traditionalists have empty nests. If something needs to be fixed, they are likely to do the work themselves with their own power tools or paint. They enjoy the benefits of AARP and are frequent QVC and HSN shoppers. 09 Big Fish, Small Pond 1,237 8.87% Older, upper-class, college-educated professionals, the members of Big Fish, Small Pond are often among the leading citizens of their small-town communities. These upscale, empty -nesting couples enjoy the trappings of success, including belonging to country clubs, maintaining large investment portfolios, and spending freely on computer technology. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Households by PRIZM Segment Households i % of Total Households 59 New Melting Pot 1,081 7.75% New Melting Pot neighborhoods are populated by a blend of ethnically diverse, young families and singles in the nation's second cities. They are mainly high school graduates that rent and work in a mix of service jobs. They are big fans of gospel music, wrestling, and monster trucks. 53 Lo -Tech Singles 905 6.49% Lo -Tech Singles are older households centered mainly in the nation's second cities. Residents are below average in their technology use, choosing instead a night out at a restaurant as their evening entertainment. 30 Pools & Patios 449 3.22% Pools & Patios is a segment of middle-aged suburban families. In these stable neighborhoods graced with backyard pools and patios, residents work as white-collar managers and professionals, and are now at the top of their careers. They are above average technology users, often researching products and shopping online. 38 Hometown Retired 435 3.12% Hometown Retired consists of older, midscale couples with no kids at home. Somewhat set in their ways, they are slow to adopt and below average in their use of technology. They watch the news on television and enjoy reading and eat out occasionally at places that they deem to offer a good value. 37 Bright Lights, Li'l City 425 3.05% Not all of America's chic sophisticates live in major metros. Bright Lights, Li'l City is a group of well-off, college educated, middle-aged couples settled in the nation's satellite cities and suburbs. Despite living further out from the urban downtowns, they still like to go out on the town with frequent meals out and karaoke evenings. 67 Park Bench Seniors 367 2.63% Park Bench Seniors are typically retired singles living in the racially diverse neighborhoods of the nation's satellite cities. With modest educations and incomes, these residents maintain low-key, sedentary lifestyles. They spend a lot of time watching TV, especially talk shows and game shows. Source: US Census, American Community Survey, PCensus CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Office The Island office market includes 25 buildings with 157,042 square feet of space. The majority of the space is Class B as opposed to Class A which uses the latest finishes, upgrades, and amenities. The office market has a 100% occupancy rate. Unfortunately, rents were not reported in this market. There is no construction currently in this market. There has been no new construction since 2008 at which time approximately 25,800 sf was built. Table 26: Island Office Supply Building Address Building Name if Applicable Building Class Rentable Building Area 3,153 Percent Leased Year Built 14602 Compass St B 100 2000 14650 Compass St Compass Plaza B 13,139 100 14015 Fortuna Bay Dr B 2,471 100 14302 Nemo Ct B 2,183 100 2004 14200 5 Padre Island Dr B 2,486 100 1979 14252 S Padre Island Dr Visitor Information Center B 2,470 100 14433 S Padre Island Dr The Medical Center B 18,393 100 2004 14537 S Padre Island Dr B 20,000 100 14641 S Padre Island Dr B 1,985 100 2006 14717 S Padre Island Dr B 7,335 100 1999 14725 S Padre Island Dr B 22,410 100 2004 14937 S Padre Island Dr B 1,886 100 2002 14941 S Padre Island Dr B 1,626 100 1994 14945 S Padre Island Dr B 4,868 100 1998 15033 S Padre Island Dr B 2,499 100 2004 15037 S Padre Island Dr B 3,600 100 1995 15105 S Padre Island Dr B 2,486 100 1997 15201 S Padre Island Dr B 8,862 100 2005 15201-15209 S Padre Island Dr Bldg. B B 10,739 100 2008 15209-200--230 S Padre Island Dr Executive Suites B 919 100 2004 15481 S Padre Island Dr B 3,432 100. 1984 15962 Palmira B 1,848 100 1997 13702 Sea Horse Ave C 1,612 100 1999 15217 South Padre Island Dr Phase II B 15,000 100 2008 14617 South Padre Island Dr Lot #3 C 1,640 100 1986 TOTALS/AVERAGES 157,042 100 1998 Source: CoStar; CDS Tourism and Hospitality The Gulf Coast tourism region contains 20 counties and includes five prominent MSAs: Houston -The Woodlands -Sugar Land (which includes Galveston), Beaumont -Port Arthur, Corpus Christi, Victoria, and Brownsville. The Gulf Coast region's share of domestic travel to and within Texas ranked no. 2 out of the seven Texas tourism regions in 2017. This region saw an increase of total tourism spending in 2017 by +9.3%. Top tourism activities within the region include Beach/Waterfront Activities, Shopping, Dining Experiences, Nightlife, and Historic Sites. CDS Economic Study Update - TIRZ 2 Corpus Christi, Texas Corpus Christi received approximately 9.9 million visitors in 2017 according to research by the Corpus Christi Convention and Visitors Bureau (CVB), about 74% of area visitors are from Texas. Tourism generates an annual economic impact of $1 billion for the Corpus Christi Region. North Padre Island attracts tourists for its beaches and fishing. To accommodate these visitors, there is a large stock of vacation rental housing. North Padre Island (78418) offers hotel/Condo properties in sixteen hotels containing 736 rooms. Historical data for hotels in the 78418 zip code show a flucuation in number of rooms over the past five years. Hurricane Harvey which hit in August of 2017 has influenced the market with higher occupancies and REVPAR due to construction workers in the nearby areas. A detailed list of hotels within zip code 78418 are in the table at right. The hotels that are differing in type, quality, and size. The most recent occupancy figures show a range from 45.8% to 72.9% for an average of 64.7%. REVPAR on average is $82.22. All of the highlighted properties (orange) are located within TIRZ #2. As seen TIRZ#2 has a Table 27: MSA Historical Hotel Trends 78418 Year # Rooms $ Room Revenue Occupancy RevPAR 2013 715 $16,318,643 50.9% $63.54 2014 735 $16,551,080 51.9% $65.30 2015 709 $15,897,110 53.1% $67.95 2016 715 $15,455,190 51.8% $66.08 2017 736 $19,259,113 64.7% $82.22 Source: Source Strategies, CDS Table 28: 78418 Hotel Performance, 2017 Hotel Name # Rooms 32 $ Room Revenue $1,966,369 Occupancy 68.6% RevPAR $168.35 Schlitterbahn Island House 44 $2,098,446 72.9% $131.32 Fortuna Bay 8 $94,525 69.2% $128.43 Bluff's Landing 24 $743,247 65.8% $84.85 Best Western 40 $1,227,663 68.8% $84.09 Holiday Inn Gulf Beach 149 $3,378,023 56.8% $83.05 Holiday Inn Express 79 $2,394,483 70.4% $83.04 Vacation Resorts Int'I 9 $133,827 45.8% $81.35 La Quinta 60 $1,706,347 70.7% $77.92 Regina Wilbanks 7 $48,951 47.2% $76.01 Padre Escapes 48 $1,250,476 56.3% $71.64 El Constantine Condo 24 $450,668 51.4% $70.03 Hawthorn Suites 54 $1,373,525 55.5% $69.69 Passport Inn 22 $234,485 66.8% $38.76 Monterrey Motel 24 $56,125 71.4% $25.42 Padre Motel 44 $237,714 66.6% $19.65 TOTAL78418 736 $19,259,113 64.7% $82.22 TOTAL Corpus Christi TIRZ #2 7,875 552 $182,380,838 $16,080,485 62.5% 63.82% $65.58 $87.78 Source: Source Strategies 2017 Annual, 2018 data not available at time of report. Orange highlighted properties are in the TIRZ higher RevPAR than the City overall. Holiday Inn Gulf Beach with 149 rooms is closed and under remodel due to Hurricane Harvey. The hotel is expected to re -open for Summer 2019. cos Economic Study Update — TIRZ 2 Corpus Christi, Texas Island Development Trends The table below illustrates the 2010 - 2018 record of building permits. Commercial permitting occurred throughout the period (see the Commercial summary below). The most significant category of permitting was single family residences, the City issued 888 permits for new construction during the last nine years. The new Commercial construction consisted of the projects listed in the table on the next page. Table 29: Island Building Permit Trends Number of Permits Commercial 2010 1 2011 1 2012 2013 2 2014 4 2015 2 2016 3 2017 2 2018* 6 Residential New apartments New condo / townhouse 15 2 17 63 45 13 10 New single family Permit Valuations Commercial 30 --------- 1,539,671 39 211,000 101 151 1,623,408 111 1,015,153 94 450,344 130 3,875,000 113 747,690 119 3,217,002 Residential New apartments New condo / townhouse 922,400 181,200 1,786,419 6,596,510 7,812,048 2,338,347 3,013,402 New single family 7,802,356 15,008,455 18,179,455 34,967,752 32,619,793 38,879,947 54,709,017 38,305,723 50,024,219 Source: City of Corpus Christi *thru 12/17/18 CDS Economic Study Update - TIRZ 2 Corpus Christi, Texas The commercial permits over the past eight years have totaled $13,097,668. The square footage added to the market was 157,272 as shown in Table 30. Table 30: TIRZ Commercial Development Permits 2010-2018 Tenant Name SEASHORE MID. ACAD.-NEW Application Description SEASHORE MIDDLE ACADEMY BLD 2 -NEW Permit Valuation $136,200 Permit Square Footage 10,120 SEASHORE LEARNING -NEW SEASHORE LEARNING CENTER BLD 5 -NEW $112,000 6,336 PACKERY PARKING RR -NEW PACKERY CHANNEL S. PARKING LOT RESTROOMS BLD 1 -NEW $61,600 440 PACKERY PARKING RR -NEW PACKERY CHANNEL S. PARKING LOT RESTROOMS BLD2-NEW $61,600 440 STORAGE BUILDING COMMERCIAL NEW BUILDING $47,000 4,000 PELICAN PLAZA PELICAN PLAZA -NEW $1,539,671 17,135 THE ISLAND CARWASH New Commercial Construction $211,000 1,666 NEW COMMERCIAL BUILDING $1,412,908 18,586 NORTH PADRE BOAT CENTER 3600 S.F. METAL BLDG. 1000 SF OFF., & 2600SF SHOP $210,500 3,600 PEZZI CONSTRUCTION NEW CONSTRUCTION OF BUILDING 5133,153 1,342 GRACE COMMUNITY CHURCH NEW CONSTRUCTION $543,000 5,595 SMA SCHOOL CAFETERIA SMA SCHOOL CAFETERIA $292,000 2,640 JOHN PEZZI STORAGE BUILDING $47,000 4,000 PADRE ESCAPES LAUNDRY NEW LAUNDRY FACILITY $250,000 2,919 VERIZON TOWER New concrete equipment pad w/canopy $30,000 312 BEACHWALK PLACE NEW CONSTRUCTION OF CLUBHOUSE $170,344 2,457 RUNNING LIGHT PUD new pool house for Running Light PUD $7,000 140 COMPASS MEDICAL OFFICE New Dr Office $368,000 3,296 MICROTEL MOTEL $3,500,000 30,998 WALDRON LAUNDRY $497,000 4,770 ISLAND JOES COFFEE $250,690 2,255 SEASHORE MIDDLE ACADEMY BUS BARN $71,940 1,500 SEASHORE LEARNING NEW CLASSROOM BLDG 4 $462,000 4,587 SEASHORE LEARNING NEW CLASSROOM BLDG 5 $1,050,000 10,030 SEASHORE LEARNING NEW CLASSROOM BLDG 3 $588,000 5,622 PADRE BALLI RV PARK PHASE 1 $339,950 1,846 DOLLAR GENERAL STORE $705,112 10,640 Source: City of Corpus Christi CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas New Development In Process Lively Beach The most significant development project planned for the TIRZ in the 2009 update was Tortuga Dunes, located immediately north of the Packery Channel. This was to be an upscale residential development with 92 single family Tots plus townhome sites. There was also land reserved for a Phase II with additional home Tots and potentially condominiums. The developer projected the first homes to be built in 2010, with the pace of construction picking up rapidly in 2011. UPDATE: Tortuga Dunes was never completed past the infrastructure. Currently the development under construction is now "Lively Beach", a 160 unit rental condo facility. Phase 1 will consist of 28 Efficiency units, 14 one -bedroom units, and 4 two-bedroom units. This phase is scheduled to open February 2020. The new developer/owner is Jeff Lambkin. Packery Pointe At December 2018, land was being cleared on the Packery Channel Park site. The Packery Pointe development project is a 9.12 acre site owned by Turner Holdings. At January 2019 the preliminary plans include a Hampton Inn, Full Service restaurant, Bar, three Quick Serve restaurants, and a multi -tenant shopping center per Wandita Ford Turner, COO. A site plan follows including 20,842 square feet retail/commercial and a 47,554 square foot hotel with 80 to 104 rooms depending on final pro forma. CDS Economic Study Update —TIRZ 2 Corpus Christi, Texas Figure 36: Packery Pointe Site Plan *4 rat i 4,7 - _moi _ .................. _ / 0 e 4 0N. v SOUTH PADRE ISLAND D R . PROPOSED SITE DEVELOPMENT PLAN 0 rA1k 1 : r NORM SITE TABULATIONS IOU IOL3 IOI] IOt! WU UNA IOLZ sitf A Wi ArA an AC an AAC MT AMA a70 AC an WI M ANA AC 1 AMA W 07! AC M! AMA IN AC VW ANA WAC YAM AMA YAC ANA YAG AMA 011707107* MOM AMA YAM AMA YOM AMA QM WO QM 1p1 i Qp We O ran1wAN7 7.19 • W VO O M9MW7M7 Mrs 11A1/MN M1 O.M0 • PALM 11A110 A !1 YM MOO NATO 0 191 1191 WOO RAin OA 119 WV MOO RAID d R9 1/911 MOO NATO R !I MS MOO NATO A fl 1110 MOO *ATM ra "IMO NOM IMO .10141. ,0011.MIL �a. ww..w YSUA I OP.0KNO.r > .g w.s..+......ac w .0•••••• ®. we AL 6.0•414 .40 04.a...4 r w1¢. w .1.0•1101r.m.1r w. n . em. M..AT COM* ... 9P2-11104 CDS 59 Economic Study Update — TIRZ 2 Corpus Christi, Texas Impacts on Island Development Plan CC Comprehensive Plan (September, 2016) The predominant residential land use in the City of Corpus Christi is the single-family dwelling at a range of densities. Plan CC designates density levels for single-family housing, duplexes, townhouses, multifamily development, and mixed-use development, which can include housing. The purpose of this approach is to show multifamily housing locations. All residential categories also include schools, churches, and neighborhood -serving public uses. Where small enclaves of residential uses are surrounded by existing or planned light -industrial or intensive commercial uses, rezoning should not perpetuate or enlarge these enclaves. Single -Family • Low-density residential: up to 3 units per acre • Medium -density residential: 4 to 13 units per acre (including two-family dwellings) • High-density residential: more than 13 units per acre Multifamily • Multifamily development can range from small apartment buildings with three or four units and townhouse developments to large apartment buildings. • Smaller buildings of no more than three stories can coexist with neighborhoods of predominantly single-family housing, preferably located at intersections or on collector streets. Preferred locations for larger buildings include downtown and downtown -adjacent areas, locations within a walkable distance of urban village cores, and transportation and transit corridors. Commercial land uses include retail and office uses that are typically open to the public at Targe. Other commercial uses, such as wholesale and distribution businesses, are included in the light industry category because they have similar impacts, such as high volumes of trucking. In Corpus Christi, 60 percent of retail development is located in the SH 358/South Padre Island Drive corridor. The concentration of retail and other commercial businesses in this corridor is unlikely to change, particularly because so much of it is located on frontage roads to the highway. The desired change is for redevelopment and transformation of this commercial area into higher -value and more attractive development with higher design standards. Schools, churches, and neighborhood -serving public uses can be included in commercial land use areas. Planned development areas are lands that are currently undeveloped or underutilized but may be suitable in the future for a variety of uses, taking into account environmental and other constraints. Designated on Padre and Mustang islands and in the potential annexation areas, planned development areas are expected to require a rezoning tied to a master planning process or an Area Development Plan. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Padre/Mustang Planning District Future Land Use PJ'UR E LAND USE Padre Island I Mustang Island Planning Distract CDS LJ Med Use - Heavy Induselel T,anSee telOn CCN Lim, nenctiureatural Enterprise Utrt Irdu s:ra: _.-....- Panee4 CMMOpfM C Fuel/mtaNi Junsacton - Co'nmMW Len-0ensty Res,dMMRi Permanent Open Space O Panr nt DISVK; eoaernmere udur. Dandy Reslmtite Rose Plein Cer. rumen - Instfutmal - Ryr Dmsey RoSWrtMI %%lie 61 Economic Study Update – TIRZ 2 Corpus Christi, Texas Regional Parkway PEL, March 2017 In 2017 the Corpus Christi Metropolitan Planning Organization (MPO) and the City of Corpus Christi — a regional transportation planning unit led by a Transportation Policy Committee comprised of area officials completed a study for the proposed federal/state funded Regional Parkway, which in its initial stages will connect Padre Island to State Highway 286, the Crosstown extension. The purpose of the proposed Parkway is to alleviate congestion on South Padre Island Drive and provide an evacuation route for the growing Southside and Padre Island. The Parkway would run parallel to SPID about seven miles south of it. At its eastern end on the Island it would terminate three miles south of Bob Hall Pier and two miles north of the National Seashore at its closest point. The east -west distance would be 15 miles. An extension of Rodd Field Road connecting with the Parkway would run 3.5 miles. All sections would be within the City's Extraterritorial Jurisdiction giving the city a measure of authority. While the road would lead increasedtrafficquickly and conveniently onto the Island — creating more opportunity for business and residential development along its path with the added benefit of expansion of the tax base — the National Seashore's long pristine stretches would remain well to the south. The study area for the Regional Parkway PEL Study is composed of Segment A and Segment B of the RPMC. These segments are located within the area for which CCMPO is required to perform transportation planning activities. The study area is south of the Corpus Christi city limits, specifically the Southside Planning District and the Flour Bluff Planning District, but within the City's extraterritorial jurisdiction (ETJ). The study area also crosses the northern limits of the Laureles Division of the King Ranch. The Regional Parkway PEL study area generally comprises of a one -mile buffer bounded on the east by PR 22 and on the west by SH 286. The PEL Study Area defines Segments A and B and is inclusive of the proposed extension of Rodd Field Road, which is bounded on the north by its intersection with Yorktown Boulevard. The Study Area limits are graphically depicted below. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas 7C..tadmist . Held Nat Figure 37: Regional Parkway PEL City of Corpus Christi Ca'pu Ctorii Nevi As SWIM Lepled Q PEI. study k.. Rodd Fmk! Rd „— ow co.,. 1� t.�..i CmmrtY B�u+da v m fcEscourtr amts COUNTY a,w• %Man 1.rrw rumor.. Cn M.M..J .b U% .lalYsru calawa fres il.w4 lS' 1..[rpm camNeap. .�.. .-. -r a 0..'1.0/0ti. Figure 2. Regional Parkway PE. Study Area Segment A begins on North Padre Island and extends west approximately 10 miles inland. This segment ranges in width from approximately 1.3 miles in the east to about 1.7 miles wide in the west and includes about 9,000 acres. The majority of this segment occurs within Nueces County; only a small portion of the southeastern edge of this segment lies within Kleberg County. The modeling results suggest up to 7.6 percent of local traffic from South Padre Island Drive (SH 358) and PR 22 will divert to the proposed Regional Parkway alignment. The greatest diversion is projected for vehicles traveling to Padre/Mustang Islands. The traffic analysis indicates that network traffic operations will improve with the construction of a Regional Parkway alignment alternative from within Segments A, B, and/or the Rodd Field Road Extension. shift in traffic from away SH 358/PR 22, suggesting Regional Parkway will serve as an alternate access to and from Padre and Mustang Islands. Next steps in the project planning process may include incorporation of the results of this PEL into the City of Corpus Christi's Urban Transportation Plan. Future planning efforts should include: further evaluation of strategies to avoid, minimize, and mitigate environmental impacts; consideration of additional connecting facilities; and assessment of potential funding strategies. Additionally, amendments to the City's Unified Development Code may be necessary to accommodate implementation of Regional Parkway. CDS Economic Study Update - TIRZ 2 Corpus Christi, Texas Metropolitan Transportation Plan 2015 - 2040 The study area consists of Nueces and San Patricio counties. The Office of the State Demographer for the State of Texas distributes the most widely used population projections for Texas. Projection estimates in these tables and the methodology for migration scenarios have been revised as of November 2012 by the Texas State Data Center and Office of the State Demographer - now housed at University of Texas San Antonio. The following Table 3.3 represents population projections for the study area: TABLE 3.3: POPULATION PROJECTIONS AND PERCENT CHANGE SINCE 2010 YR TOTAL PCT• ANGLO PCT• BLACK PCT• HISPANIC PCT• OTHER PCT' 2010 2015 2020 2025 2030 2035 2040 2045 2050 405,027 422,438 4.3 440,297 8.7 458,163 13.1 473,307 16.9 484,291 19.6 491,526 21.4 496,301 22.5 499,429 23.3 139,200 133,281 - 4.3 126,763 - 8.9 119,872 -13.9 112,096 -19.5 103,568 - 25.6 94,742 - 31.9 13,080 13,256 1.3 13,375 2.3 13,359 2.1 13,147 0.5 12,777 - 2.3 12,221 - 6.6 86,157 - 38.1 78,251 - 43.8 11,535 - 11.8 10,798 -17.4 241,541 262,603 8.7 11,206 13,298 18.7 284,517 17.8 306,550 26.9 326,561 35.2 342,987 42.0 355,899 47.3 365,980 51.5 373,488 54.6 'PCT - Denotes Percent Change 15,642 39.6 18,382 6.4 21,503 91.9 24,959 122.7 28,664 155.8 32,629 191.2 36,892 229.2 Schlitterbahn New Ownership As reported on December 5, 2017, Corpus Christi Business News An agreement reached in U.S. Bankruptcy Court in San Antonio Monday, Dec. 4., gives the owners of Schlitterbahn Corpus Christi Riverpark and Resort_until Jan. 31 to reach an agreement that could keep the property from being sold at auction in February. The ruling came from U.S. Bankruptcy Judge Craig Gargotta, who had earlier ordered the appointment of a Chapter 11 trustee to oversee Upper Padre Island Partners, the company that controls development of 540 acres on Padre Island. That development includes the water park and hotel. Also included are 270 -acres of land surrounding the park which was slated for auction in Nueces County on Tuesday, Dec. 5. Axys Capital Credit Fund sought to foreclose on that acreage in late November. The land is collateral for a $16 million loan made to Upper Padre Island Partners. The water park and resort were to be the centerpiece of the bigger development that included a river walk, residential and commercial properties and a marina. The city has been asked to build a bridge over a canal on Park Road 22 as part of the river walk. That may now be put on hold. CDS Economic Study Update —TIRZ 2 Corpus Christi, Texas Estimated to be worth about $552 million when completed, the project has been fraught with trouble since the beginning. Partners Gary Henry, president of Schlitterbahn in New Braunfels, his brother Jeff Henry, who designed all the Schlitterbahn parks, and Paul Schexnailder, who owns the land where the development is to be located, have not agreed on how to proceed. According to court records, Gary Henry moved to put Upper Padre Island Partners into involuntary bankruptcy earlier in the year to stop Axys from foreclosing on the 270 -acre parcel. The company could not file for bankruptcy on its own because all the partners did not agree to it. The Dec. 4 decision concerns IBC Bank's attempts to foreclose on the actual waterpark and hotel, which was also used as collateral for a loan. The ruling gives the bankruptcy trustee more time to either find a buyer or work out another plan, which could include auctioning off the property. If no agreement is reached by Jan. 31, IBC will move to foreclose on the property in February. Schlitterbahn opened in Corpus Christi in 2016 after about two years of delayed openings because of changes in the scope of the project. Liens and work stoppages by contractors who were not being paid plagued the entire construction process. The attraction has yet to make a profit according to bankruptcy filings. May 1, 2018 Caller Times Schlitterbahn Corpus Christi has a new owner and management company. On May 1, International Bank of Commerce was the purchaser at the water park's foreclosure sale at the Nueces County Courthouse. The San Antonio -based company bid $20 million. There were no counter bids, said Jon Lowe, attorney with Martin & Drought, PC, a law firm in San Antonio. "It's gone from a bank lender to a real estate -owned situation," Lowe told the Caller -Times. "The bank owns the property, so it has to do everything the owner would have to do: pay the bills, deal with insurance, etc." The park will continue to operate as a licensed Schlitterbahn Riverpark & Resort, according to a news release. Previously, IBC was the lien holder on the Schlitterbahn property and took over when Upper Padre Partners, LP, the original developers of the project on North Padre Island, failed to make payments of $16 million on a 2015 loan, according to Nueces County court documents. Lowe filed two deeds in the Nueces County district clerk's office. One deed is for the foreclosure sale to IBC. A second deed transferred ownership and management of the property to Diamond Beach Holdings, an affiliate company of IBC. Figure 38 is a map from Corpus Christi Assistant City Attorney which displays the new ownership of Schlitterbahn park, golf course, and surrounding land. "Blue" area is now held by AXYS Capital and the "beige" is held by IBC. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Figure 38: New Schlitterbahn Ownership CDS 00 Economic Study Update —TIRZ 2 Corpus Christi, Texas An interview with Stephanie Pickett, General Manager of Schlitterbahn revealed the following Schlitterbahn Improvements: • Drive-in/dive-in movie theater — November 2018 • Future plans include virtual reality attractions, escape rooms and eSports arenas to the facility (build out 3rd floor). • The world's first lazy river eSports tournament is set for March. • Ropes course, beach volleyball • New restaurant/chef/menu • Build out the 4' floor — Ballroom/meeting space for 800 capacity • Complete $3million Harvey repairs (mostly structural/insurance $) CDS made numerous attempts to contact IBC and AXYS directly. Unfortunately, they were unavailable via phone, email, and other contacts. CDS Economic Study Update - TIRZ 2 Corpus Christi, Texas POTENTIAL DEMAND Single Family Residential Demand - City of Corpus Christi Demand for new construction of single- family homes is primarily rooted in the need to house additional population in an area. Therefore, we will quantify demand for new homes within the City based on the previously mentioned Corpus Christi Metropolitan Planning Organization (MPO) forecasts that have been prepared. Table 31: City Projections *italics denotes projections Source: PCensus, MPO CDS CDS will use the projected growth for 2035 and apply it annually to the current population, households, and employment. Population is projected to grow at a rate of 4,023 per year, while households remain at 1,603 annually (CDS Estimated based on PCensus) and employment at 1,806 annually thru 2035 (Table 32). To plan and project new housing units, the number of projected housing units is multiplied by the percentage of owners for single family homes. As shown using the 67.75% of households owning in the CMA (2018 estimate) there is a potential demand to support 9,852 new homes through 2030. Table 32: City Single Family Demand 2018 124,221 2020 127,427 2025 135,444 Increase 2035 151,478 Total current and projected City households Incremental household unit demand 2018 - City 2018 2020 2025 2030 2035 2035 Population 330,925 338,971 359,086 379,201 399,328 68,403 Households 124,221 127,427 135,444 143,461 151,478 27,257 Employment 193,000 196,613 205,643 214,673 223,715 30,715 *italics denotes projections Source: PCensus, MPO CDS CDS will use the projected growth for 2035 and apply it annually to the current population, households, and employment. Population is projected to grow at a rate of 4,023 per year, while households remain at 1,603 annually (CDS Estimated based on PCensus) and employment at 1,806 annually thru 2035 (Table 32). To plan and project new housing units, the number of projected housing units is multiplied by the percentage of owners for single family homes. As shown using the 67.75% of households owning in the CMA (2018 estimate) there is a potential demand to support 9,852 new homes through 2030. Table 32: City Single Family Demand Sources: PCensus for Map Info, Copyright 2018 Tetrad Corporation, CDS TIRZ Demand for Single Family Currently, the TIRZ encompasses 0.005% of the City's Households (634 out of 124,221). Single Family development in the TIRZ accounts for 18.69% of the overall household units. Currently the TIRZ includes 37 improved residential lots (inventory) and 173 platted lots. At this current rate of 18.69% applied to the expected growth, the TIRZ could absorb 24 new homes by 2035 (Table 33). CDS 2018 124,221 2020 127,427 2025 135,444 I 2030 143,461 2035 151,478 Total current and projected City households Incremental household unit demand 3,206 8,017 8,017 8,017 City Single family demand (67.75%) 2,172 5,431 5,431 5,431 City Single Family Demand Annually 1,086 1,086 1,086 1,086 Sources: PCensus for Map Info, Copyright 2018 Tetrad Corporation, CDS TIRZ Demand for Single Family Currently, the TIRZ encompasses 0.005% of the City's Households (634 out of 124,221). Single Family development in the TIRZ accounts for 18.69% of the overall household units. Currently the TIRZ includes 37 improved residential lots (inventory) and 173 platted lots. At this current rate of 18.69% applied to the expected growth, the TIRZ could absorb 24 new homes by 2035 (Table 33). CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Table 33: TIRZ Single Family Demand 2018 2020 I 2025 2030 2035 Total current and projected City households 124,221 127,427 135,444 143,461 151,478 Incremental household unit demand 143,461 3,206 8,017 8,017 8,017 TIRZ % of City HH growth (.005) 8,017 16 40 40 40 TIRZ Single Family (18.69%) 2,376 3 7 7 7 Corpus Christi Multifamily Demand Multifamily development in the City accounts for 29.64% of the overall household units. Based on projections of households in the City, there is demand for 1,658 multifamily units by 2035 (Table 34). Table 34: City Multifamily Demand Absorption in the market has on average been 427 units per year. Using this trend, the estimate of 475 units per year appears to be reasonable. TIRZ Demand for Multifamily Currently, the TIRZ encompasses 0.005% of the households. Multifamily accounts for 77.49% of the overall housing units. At this current rate applied to the expected growth, the TIRZ could absorb 105 multifamily units by 2035 (Table 35). Table 35: TIRZ Multifamily Demand 2018 2020 2025 2030 2035 Total current and projected City households 124,221 127,427 135,444 143,461 151,478 Incremental housing unit demand 3,206 3,206 8,017 8,017 8,017 City Multifamily demand (29.64%) 16 950 2,376 2,376 2,376 Less Pipeline Units 12 -483 31 31 City Ann. Multifamily Demand Based on HH Projections 233 475 475 475 Absorption in the market has on average been 427 units per year. Using this trend, the estimate of 475 units per year appears to be reasonable. TIRZ Demand for Multifamily Currently, the TIRZ encompasses 0.005% of the households. Multifamily accounts for 77.49% of the overall housing units. At this current rate applied to the expected growth, the TIRZ could absorb 105 multifamily units by 2035 (Table 35). Table 35: TIRZ Multifamily Demand CDS 2018 I 2020 2025 2030 2035 Total current and projected City households 124,221 127,427 13,5444 143,461 151,478 Incremental household unit demand 3,206 8,017 8,017 8,017 TIRZ % of City HH growth (.005) 16 40 40 40 TIRZ Multifamily (77.49%) 12 31 31 31 CDS Economic Study Update - TIRZ 2 Corpus Christi, Texas Retail Development Demand- Corpus Christi Currently the City of Corpus includes 55 square feet of retail per person. Historically, 162,000 square feet has been absorbed annually over the past five years. Table 36: City Retail Demand Based on historical absorption, CDS estimates that 162,000 square feet can be absorbed annually or 2.75 million square feet by 2035. TIRZ Demand for Retail Currently, the TIRZ encompasses 0.003% of the City's population. Retail on the Island accounts for 271 square feet per TIRZ resident. At this current rate applied to the expected growth, the TIRZ could absorb 49,050sf by 2035 (Table 37). Table 37: TIRZ Retail Demand 2018 330,925 2020 338,971 2025 359,086 2030 379,201 2035 399,328 Total current and projected City Population Incremental Population growth 338,971 8,046 20,115 20,115 20,115 55 5F Retail Per Person 8,046 442,530 1,106,325 1,106,325 1,106,325 Less Retail Pipeline 24 (68,566) 60 60 Island Retail 271 SF Per TIRZ Person Retail Demand Annually Based on Projections 6,504 373,964 221,265 221,265 221,265 Annual Retail Demand Based on Historical Absorption -10,460 162,000 162,000 162,000 162,000 Based on historical absorption, CDS estimates that 162,000 square feet can be absorbed annually or 2.75 million square feet by 2035. TIRZ Demand for Retail Currently, the TIRZ encompasses 0.003% of the City's population. Retail on the Island accounts for 271 square feet per TIRZ resident. At this current rate applied to the expected growth, the TIRZ could absorb 49,050sf by 2035 (Table 37). Table 37: TIRZ Retail Demand Historically the TIRZ has absorbed 5,740 square feet of retail per year. Based on historical trends, the annual demand estimate of 3,200sf appears to be reasonable. The Packery Pointe development is proposing 20,842 square feet of retail currently. This may be all the retail that the Island can absorb over the next 5 to 10 years. Due to the lack of retail being built or built over the past 10 years, absorption is hard to predict based on population growth alone. The tourism market will contribute seasonally to the success of the retail market. Office Development Demand - Corpus Christi An office space per office employee factor for the past five years ranged from a high of 365 square feet in 2010 to a low of 150sf in 2017. In our analysis (Table 38), we will use 250 square feet. CDS 2018 2020 2025 2030 2035 Total current and projected City Population 330,925 338,971 35,9086 379,201 399,328 Incremental Population growth 8,046 20,115 20,115 20,115 TIRZ Population .003 of City 24 60 60 60 Island Retail 271 SF Per TIRZ Person 6,504 16,353 16,353 16,353 Less Island Pipeline -10,460 Retail Demand Annually 0 3,270 3,270 3,270 Historically the TIRZ has absorbed 5,740 square feet of retail per year. Based on historical trends, the annual demand estimate of 3,200sf appears to be reasonable. The Packery Pointe development is proposing 20,842 square feet of retail currently. This may be all the retail that the Island can absorb over the next 5 to 10 years. Due to the lack of retail being built or built over the past 10 years, absorption is hard to predict based on population growth alone. The tourism market will contribute seasonally to the success of the retail market. Office Development Demand - Corpus Christi An office space per office employee factor for the past five years ranged from a high of 365 square feet in 2010 to a low of 150sf in 2017. In our analysis (Table 38), we will use 250 square feet. CDS Economic Study Update - TIRZ 2 Corpus Christi, Texas Table 38: City Office Demand City 2018 2020 2025 2030 2035 Current and Projected Employment 193,000 196,613 205,643 214,673 223,715 Incremental Employment Growth 223,715 3,612 9,030 9,030 9,030 52.65% Labor Force/Prof/White Collar 9,030 1,901 4,754 4,754 4,754 250 SF Per Job 27 475,250 1,188,500 1,188,500 1,188,500 Less Pipeline Office 19 (50,000) 2,407 4,750 Incremental Demand 4,750 425,250 1,188,500 1,188,500 1,188,500 City Office Annual Demand 950 212,625 237,700 237,700 237,700 TIRZ Office Demand The Island includes 25 buildings with 157,042 square feet of space or 1.5% of the overall City office supply. There are 624 employed in the TIRZ, 68.7% are white collar workers or .003 percent of the City's employment. Table 39: TIRZ Office Demand City 2018 2020 2025 2030 2035 Current and Projected Employment 193,000 196,613 205,643 214,673 223,715 Incremental Employment Growth 3,612 9,030 9,030 9,030 TIRZ .003 overall Office 14 27 27 27 68.78%TIRZ Labor Force/Prof/White Collar 9 19 19 19 250 SF Per Job 2,407 4,750 4,750 4,750 Incremental Annual Demand 1,203 950 950 950 Over a seven year period, the TIRZ can absorb approximately 7,157 square feet of office space. Hotel and Tourism The TIRZ includes 552 rooms with 149 rooms offline due to Harvey. Occupancy is currently 63.8% with RevPAR at $87.78. With the reintroduction of 149 rooms and the proposed Hampton Inn at Packery Pointe (80 - 104 rooms), plus the Targe number of rentals (condos, townhomes homes) on the Island, CDS estimates no immediate new hotel development over the next five to ten years in the TIRZ. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas PROPERTY ACCOUNT AND TIRZ VALUE ANALYSIS The results of the market study update have been translated into projections of new development and TIRZ assessed values for the remaining existing zone term and a potential twenty-year extension. New Development Projections - Quantities and Values The projections of new development in the near term are based on the findings of supportable new development in the Market Analysis and an assessment of known projects underway, most notably Lively Beach and Packery Pointe, plus the reopening of the rehabbed Holiday Inn. CDS projected assessed values of these new projects based on existing comparable properties on North Padre Island and southern Corpus Christi. Key assumptions in the projections include: • In the absence of a new market dynamic for the Island, supportable new development will adhere to the limits suggested by the Market Analysis. • Based on anecdotal research obtained during the Market Analysis, the projections assume that Lively Beach will be 100% rental units. • The major future assumption included in these projections is that a new bridge and associated channel are constructed on Park Road 22 north of the Nemo Court intersection. This improvement will be designed in such a way so as to become an attractive public amenity and destination that supports new commercial development along its adjacent frontages in a walkable outdoor configuration. The completion of this project occurs soon enough to spur initial adjacent retail under construction starting in 2025 and open in 2026. This significant new element of the Island's attractiveness is enough to spur other new developments that happen earlier and in larger quantities than without the bridge and channel project. • The projections do not incorporate any new development value specific to the current waterpark and hospitality venue at 14353 Commodore Drive. • All new development is allocated 30% of total new assessed market value during the interim construction year with the remainder added the following year. • For all new single family and condominium units, 10% of new market value is assumed to be reduced to exemptions at year of completion to calculate new taxable value. The projections of new development quantities and assessed values are provided in the following tables. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Table 40: Projected TIRZ 2 New Development Quantities Development Land Use 2019 2020 2021 2022 2023 Calendar Year Of Completion 2024 2025 2026 2027 2028 2029 2030 2031 2032 Residential (units) Lively Beach Future condos Future single family Future multifamily apartments Commercial Packery Pointe Hotel (rooms) Retail (sq.ft.) Reopened hotel (rooms) Future hotel (rooms) Future retail (sq.ft.) 149 46 100 14,142 6,698 40 10 40 10 34 15,000 10 130 30 100 10 30 10 Development Land Use 2033 2034 2035 Calendar Year Of Completion 2036 2037 2038 2039 2040 2041 2042 Total Residential (units) Lively Beach Future condos Future single family Future multifamily apartments Commercial Packery Pointe Hotel (rooms) Retail (sq.ft.) Reopened hotel (rooms) Future hotel (rooms) Future retail (sq.ft.) 10 100 15,000 30 10 30 10 130 10 30 15,000 10 100 160 150 100 300 100 20,840 149 260 45,000 CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Table 41: Projected TIRZ 2 New Development Assessed Values Value / Tax Year (Jan. 1 Valuation) Additional Assessed Value ($) Development Land Use Unit 2020 2021 2022 2023 2024 2025 2026 202.7 2028 2029 2030 2031 2032 Residential (units) Lively Beach Future condos Future single family Future multifamily apartments Commercial Packers Pointe Hotel (rooms) Retail (sq.ft.) Reopened hotel (rooms)' Future hotel (rooms) Future retail (sq.ft.) $200,000 $275,000 5700,000 $150,000 $47,500 5180 $20,000 547,500 5180 2,760,000 1,425,000 763,668 2,980,000 6,440,000 3,325,000 2,1.43,584 2,400,000 5,600,000 2,100,000 4,900,000 2,400,000 5,600,000 2,040,000 4,760,000 2,475,000 5,775,000 2,475,000 5,775,000 2,100,000 4,900,000 2,1.00,000 4,900,000 2,100,000 4,900,000 2,100,000 4,900,000 4,500,000 10,500,000 1,852,500 4,322,500 810,000 1,890,000 TOTAL ADDITIONAL MARKET VALUE Exemptions on new units 7,928,668 11,908,584 4,500,000 10,500,000 (630,000) 2,400,000 7,700,000 7,750,000 (630,000) 10,602,500 16,197,500 (630,000) 18,375,000 (742,500) 4,900,000 4,575,000 10,675,000 (630,000) TOTAL ADDITIONAL TAXABLE VALUE 7,928,668 11,908,584 4,500,000 9,870,000 2,400,000 7,700,000 7,120,000 10,602,500 15,567,500 17,632,500 4,900,000 4,575,000 10,045,000 . Incremental increase over 2018 value CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Value / Development Land Use Unit 2033 2034 Tax Year (Jan. 1 Valuation) Additional Assessed Value ($) 2035 2036 2037 2038 2039 2040 2041 2042 Residential (units) Lively Beach Future condos Future single family Future multifamily apartments Commercial Packery Pointe Hotel (rooms) Retail (sq.ft.) Reopened hotel (rooms)' Future hotel (rooms) Future retail (sq.ft.) $200,000 $275,000 $700,000 $150,000 $47,500 $180 $20,000 $47,500 $180 2,100,000 4,500,000 2,475,000 4,900,000 10,500,000 810,000 1,890,000 5,775,000 2,100,000 4,900,000 2,475,000 2,100,000 5,775,000 4,900,000 1,852,500 4,322,500 2,100,000 2,475,000 4,900,000 5,775,000 2,100,000 4,900,000 4,500,000 10,500,000 810,000 1,890,000 TOTAL ADDITIONAL MARKET VALUE Exemptions on new units 7,410,000 19,765,000 (630,000) 7,875,000 (742,500) 4,900,000 (630,000) 6,427,500 14,997,500 (1,372,500) 2,100,000 8,185,000 (630,000) 14,265,000 (742,500) 15,400,000 (630,000) TOTAL ADDITIONAL TAXABLE VALUE 7,410,000 19,135,000 7,132,500 4,270,000 6,427,500 13,625,000 2,100,000 7,555,000 13,522,500 14,770,000 Incremental increase over 2018 value CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas Projected TIRZ 2 Increment and Revenue The following three tables provide a summary of projected new taxable assessed value in TIRZ 2, based upon the new development projections. Each participating taxing jurisdiction is shown with a separate taxable value, owing to differences in offered exemptions. The projected TIRZ values and revenue include the following assumptions: • No additional property is annexed into the TIRZ. • Existing properties appreciate at an average rate of 3.0% per year. Individual property types will increase or decrease in value at considerably different rates from year to year depending upon overall economic conditions and impactful events such as coastal storms, but a 3.0% rate is a reasonable and conservative rate to apply across all property types over the long term. • The property tax collection rate is 95%. Table 42: Projected TIRZ 2 Taxable Value ($) Year City of Corpus Christi $0.626264 Taxing Jurisdictions and Tax Rates Nueces County $0.351340 Hospital 50.117672 Del Mar College $0.281885 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 CDS 478,974,650 501,272,557 528,219,318 548,565,898 574,892,875 594,539,661 620,075,851 645,798,126 675,774,570 711,615,307 750,596,266 778,014,154 805,929,579 839,409,966 872,002,265 917,297,333 951,948,753 984,777,216 1,020,748,032 476,821,008 499,054,306 525,934,519 546, 212, 554 572,468,931 592,042,999 617,504,289 643,149,418 673,046,400 708,805,292 747,701,951 775,033,010 802,859,000 836,247,270 868,744,688 913,942,029 948,492,789 981,217,573 1,017,081,600 483,595,715 506,032,255 533,121, 806 553,615,460 480,516,055 502,860,205 529,854,595 550,250,233 576,627,740 596,326,572 621,916,369 647,693,860 677,727,176 713,626,491 752,667,786 780,147,820 808,127, 254 841,673,572 874,333,779 919,698,793 954,422,256 987,324,924 1,023,372,172 Economic Study Update — TIRZ 2 Corpus Christi, Texas CDS 2038 2039 2040 2041 2042 1,064,995,473 1,099,045,338 1,139, 571,698 1,187,281,349 1,237,669,789 1,061,219,048 1,095,155,620 1,135,565,288 1,183,154, 747 1,233,419,389 1,067,698,337 1,101,829,287 1,142,439,166 1,190,234,841 1,240,711,886 Table 43: Projected TIRZ 2 Assessed Value Increment ($) Year City of Corpus Christi $0.626264 Taxing Jurisdictions and Tax Rates Nueces County $0.351340 Hospital $0.117672 Del Mar College $0.281885 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 396,460,783 418,758,690 445,705,451 466,052,031 492,379,008 512,025,794 537,561,984 563,284,259 593,260,703 629,101,440 668,082,399 695,500,287 723,415,712 756,896,099 789,488,398 834,783,466 869,434,886 902,263,349 938,234,165 982,481, 606 1,016,531,471 1,057,057,831 1,104,767,482 1,155,155,922 395,088,667 417,321,965 444,202,178 464,480,213 490,736,590 510,310,658 535,771,948 561,417,077 591,314,059 627,072,951 665,969,610 693,300,669 721,126,659 754,514,929 787,012,347 832,209,688 866,760,448 899,485,232 935,349,259 979,486,707 1,013,423,279 1,053,832,947 1,101,422,406 1,151,687,048 401,863,374 424,299,914 451,389,465 471,883,119 397,807,458 420,151,608 447,145,998 467,541,636 493,919,143 513,617,975 539,207,772 564,985,263 595,018,579 630,917,894 669, 959,189 697,439,223 725,418,657 758,964,975 791,625,182 836,990,196 871,713,659 904,616,327 940,663,575 984,989,740 1,019,120,690 1,059,730,569 1,107,526, 244 1,158,003, 289 Economic Study Update — TIRZ 2 Corpus Christi, Texas Table 44: Projected TIRZ 2 Revenue ($) Year City of Corpus Christi $0.626264 Taxing Jurisdictions and Tax Rates Nueces County $0.309189 Hospital $0.117672 Del Mar College $0.281885 TOTAL 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2,358,747 2,491,408 2,651,728 2,772,780 2,929,413 3,046,302 3,198,229 3,351,264 3,529,609 3,742,844 3,974,762 4,137,885 4,303,968 4,503,159 4,697,068 4,966,551 5,172,710 5,368,023 5,582,032 5,845,282 6,047,862 6,288,974 6,572,823 6,872,609 1,160,492 1,225,798 1,304,753 1,364,316 1,441,438 1,498,933 1,573,721 1,649,048 1,736,864 1,841,899 1,956,150 2,036,429 2,118,162 2,216,233 2,311,688 2,444,446 2,545,932 2,642,054 2,747,397 2,877,042 2,976,724 3,095,419 3,235,203 3,382,845 449,237 474,318 504,601 527,511 1,065,292 1,125,127 1,197,416 1,252,033 1,322,670 1,375,421 1,443,949 1,512,978 1,593,405 1,689,540 1,794,089 1,867,678 1,942, 604 2,032,438 2,119,899 2,241,382 2,334,369 2,422,479 2,519,010 2,637,711 2,729,111 2,837,860 2,965,853 3,101,026 5,033,767 5,316,651 5,658,498 5,916,640 5,693,521 5,920,656 6,215,898 6,513,290 6,859,878 7,274,282 7,725,000 8,041,991 8,364,734 8,751,831 9,128,654 9,652,379 10,053,010 10,432,556 10,848,439 11,360,035 11,753,697 12,222,253 12,773,879 13,356,480 Total 104,406,031 51,382,984 1,955,666 47,123,339 204,868,020 TIRZ 2 Recommendations Based on the review of recent market conditions and performance of the various land uses and an assessment of the most significant development and public improvement opportunities, CDS has the following recommendations for the future activities of TIRZ 2. • CDS finds that the key market -supportable development opportunities on North Padre Island lie primarily within the existing boundaries of the zone, especially the properties adjacent to and east CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas of the existing water park and hospitality venue at 14353 Commodore Drive. CDS was not able to discern a clear direction for the waterpark apart from the recent improvements that the current owner has undertaken, but it would appear logical that it will continue to be a regional leisure activity draw to Coastal Bend residents and an amenity (though not primary driver of tourism demand) for out -of -area visitors already destined for North Padre Island. The remaining vacant properties around 14353 Commodore Drive and on the east side of Park Road 22 should be able to accommodate projected supportable demand. Also, zone properties on the west side of Park Road 22 at the south end of the zone will be able to accommodate and be desirable for small- scale commercial development. Therefore, CDS does not recommend adding new properties to the zone for now. • There does not appear to be any major transformative external force that would change the growth trajectory within the zone. However, the City, private property owners and other applicable entities have an opportunity to internally impact the market within the zone with the Park Road 22 bridge project and associated channel connection. Not only would a bridge allow more direct navigation to and from Packery Channel, it could facilitate unique public space improvements that could be part of a "placemaking" effort. CDS recommends that the involved entities work together to create a walkable destination area around the new channel that supports new retail / restaurant / entertainment development by inviting visitors to linger and cross -visit businesses on foot, bicycle etc., as opposed to the car -based strip development in place on the Island today. This will also make these properties attractive for residential and hotel development. CDS' projections above have assumed such a project and private development to occur in the mid -2020s. TIRZ funds can be used for the improvements that will be public infrastructure and amenities, such as pedestrian and roadway infrastructure and public parking. Public space landscape and streetscape elements such as lighting, benches, trees, etc. would also be eligible. CDS recommends that the City undertake a master plan effort in cooperation with the bridge -adjacent private property owners to identify the supportive placemaking improvements that will work in synergy with the future mixed-use developments around the channel. This concept planning effort can also be TIRZ-funded, at least to the extent that it is focusing on the public improvement components. • Furthermore, in order to extend the benefits of the bridge / channel project to the remainder of the zone, CDS recommends that a connective network of landscaped pathways and necessary safe crosswalks for pedestrians, bicycles, etc. be planned and constructed that reach from the new mixed-use destination to other residential and hospitality areas and additional destinations such as 14353 Commodore Drive. • To accomplish this planning and improvement effort, CDS recommends extending the life of the TIRZ. The projections assume a 20 -year extension to 2042. However, depending on the financing approach for future improvements, a longer term may be necessary, particularly if bond financing backed by TIRZ revenue is used. CDS Economic Study Update — TIRZ 2 Corpus Christi, Texas CDS Community Development Strategies 1001 S. Dairy Ashford, Suite 450 Houston, TX 77077 281.582.0847 (Phone) 713.465.6975 (Fax) www.cdsmr.com CDS 80 Times PART OF THE USA TODAY NETWORK Certificate of Publication NOTICE OF PUBLIC HEARING AND SECOND CITY OF CORPUS CHRIS TI -SECRETARY READING OF AN ORDINANCE AMENDING PO BOX 9277 ORDINANCE NO.024270 CORPUS CHRISTI, TX 78401 NOTICE IS HEREBY GIV- EN that The Corpus Christi City Council will conduct a public hearing on Tuesday, September 5, 2023, during a STATE OF WISCONSIN) regular Council meeting, )) which begins at 11:30 AM in the Council Chambers, COUNTY OF BROWN) City Hall, 1201 Leopard Street to consider an Ordi- nance approving amend- I, being first duly sworn, upon oath depose and say that I ments to the Tax Incre- am a legal clerk and employee of the publisher, namely,the meet Reinvestment Zone #2 Amended Project & Fi- Corpus Christi Caller-Times, a daily newspaper published nancing Plans approved by at Corpus Christi in said City and State, generally circulated the Board of Directors of Reinvestment Zone Num- in Aransas, Bee, Brooks, Duval, Jim Hogg,Jim Wells, ber Two, Corpus Christi, Kleberg, Live Oak, Nueces, Refugio, and San Patricio, Texas, recommending the allocation of $150,950,000 in Counties, and that the publication of which the annexed is a future revenue to specified true copy,was inserted in the Corpus Christi Caller-Times projects including water and wastewater infrastruc- in the following issue(s)dated: ture, parks, mobility Proj- ects, developer reimburse- ment, and administration costs. /s/ Rebecca Huerta City Secretary 08/27/2023,09/03/2023 On this September 3, 2023, I certify that the attached document is a true and exact copy made by the publisher: 001 Legal Notice Clerk Notary Public, State of Wisconsin,County of Brown Notary Expi es KAITLYN FELTY Notary Public Publication Cost: $354.20 State of Wisconsin Ad No: 0005807750 Customer No: 1490432 PO#: Amending Ord#024270 #of Affidavits 1 This is not an invoice