May 15, 2023 TIF #2

THIS IS A FIVE MEMBER BOARD AND WE HAVE THREE HERE.

[1. CALL TO ORDER]

[00:00:05]

AND AS CHAIRMAN, I WILL CALL THE MEETING OF THE TAX INCREMENT FINANCE REINVESTMENT ZONE NUMBER TWO TO ORDER AT 5:01.

FIRST ITEM ON OUR AGENDA FOR THE EVENING IS CITIZEN APPEARANCES.

DO WE HAVE ANYONE HERE WHO WOULD LIKE TO ADDRESS THE TIF TWO BOARD ON AN ITEM THAT'S NOT POSTED ON OUR AGENDA? AND I SEE NO SUCH REQUEST.

NEXT IS ITEM THREE A, TO CONSIDER APPROVAL OF THE MINUTES FROM THE AUGUST 15TH, 2022 TIF REINVESTMENT ZONE NUMBER TWO BOARD MEETING.

[3A. Consider approval of the minutes from the August 15, 2022 Tax Increment Finance Reinvestment Zone #2 (TIF #2) Board meeting.]

I'LL MAKE A MOTION TO APPROVE.

I'LL SECOND. MOTION BY FLETCHER.

SECOND BY HOWELL TO APPROVE ALL THOSE IN FAVOR.

MOTION PASSES BY UNANIMOUS VOTE.

ALL RIGHT. NEXT UP IS ITEM THREE B, TO CONSIDER APPROVAL OF A RESOLUTION AMENDING THE REINVESTMENT ZONE NUMBER TWO OF THE CITY OF BURLESON,

[Items 3B & 3C]

AND THIS WILL BE PRESENTED BY MARTIN AVILA, OUR FINANCE DIRECTOR.

ARE YOU GOING TO PRESENT ALL THESE ITEMS AT ONCE? I'M GOING TO PRESENT ITEM THREE B AND THREE C AS ONE PRESENTATION.

OKAY. SO DO WE NEED TO, I THINK MAYOR PRO TEM, WE NEED TO ALSO READ INTO THE RECORD ITEM C AS WELL.

OKAY. THEN THIS PRESENTATION THEN WILL COVER ALSO ITEM THREE C TO CONSIDER APPROVING A RESOLUTION AMENDING THE TIF TWO BUDGET FOR FISCAL YEAR 2022 AND 23 BY INCREASING THE APPROPRIATIONS IN THE TIF TWO FUND IN THE AMOUNT OF $874,393 FOR THE RENFRO AND JOHNSON AVENUE PEDESTRIAN IMPROVEMENT PURCHASE OF A REAL ESTATE TRACT FOR A FUTURE PARKING LOT AND THE FISCAL YEAR 23 DEBT SERVICE PAYMENT FOR THE 2022 CO BONDS, WHICH WILL ALSO BE PRESENTED BY MARTIN AVILA. THANK YOU, PRESIDENT MCCLENDON AND BOARD MEMBERS.

TODAY, WE'RE GOING TO TALK ABOUT TWO FOCAL POINTS, ONE, ADJUSTING THE TIF TWO PLAN AS IT RELATES TO THE PROJECTS THAT ARE GOING TO BE INVOLVED UNDER THE TIF TWO.

AND IN ADDITION TO THAT, WE'RE GOING TO TALK ABOUT THE BUDGET AMENDMENT AS WELL IN RELATIONSHIP TO THESE TWO ADDITIONAL PROJECTS, PLUS AN ADDITIONAL BUDGET AMENDMENT ON THE DEBT SERVICE PAYMENT.

IN THE FISCAL YEAR 2023 FIVE YEAR CIP PLAN.

A PROJECT WAS INTRODUCED AS PART OF THAT AND IT WAS THE RENFRO STREET AND JOHNSON AVENUE PEDESTRIAN IMPROVEMENTS FOR $192,000.

AND SO IT WAS INCLUDED IN THE CIP PLAN, IT WAS APPROVED IN THE CIP PLAN AND IT WAS THE FUNDING SOURCE WAS IDENTIFIED AS TIF TWO CASH FUNDING, BUT IT WAS NEVER REALLY ADDED AS PART OF THE TIF TWO PLAN.

AND SO THAT IS ONE OF THE THINGS THAT WE'RE TALKING ABOUT, IS TO ADD THAT PROJECT.

NOTHING HAS BEEN SPENT ON THE PROJECT.

IT WAS JUST ALLOCATED AND IDENTIFIED.

AND BEFORE WE SPEND THE DOLLARS WE WANTED TO MAKE SURE THAT WE ADDED IT TO THE PLAN ALONG WITH THE FINANCING OF THAT PARTICULAR PROJECT.

SO THAT IS ONE.

AND AGAIN, IT IS A PROJECT THAT THE PUBLIC WORKS IS PART OF THEIR THEIR CIP PLAN AND IT SHOWS A LITTLE IMAGE OF WHERE THAT PEDESTRIAN IMPROVEMENT IS GOING TO BE MADE.

IF YOU HAVE ANY PARTICULAR QUESTIONS ABOUT THAT, WE DO HAVE ERIC OSCARSSON AND PUBLIC WORKS THAT COULD TALK ABOUT THAT.

THE OTHER ITEM IS IN REGARDS TO THE PURCHASING OF A LOT FROM INDEPENDENT BANK.

AND AGAIN IT IS BROKEN OUT IN REGARDS TO THE THE LOT IS PART OF HAS A SMALL PORTION OF SOME KIND OF PARKING THAT'S THERE AND THEN IT HAS THE LAND RIGHT NEXT TO IT. AND SO THIS IS IN ESSENCE THE ADDING THAT PARTICULAR PROJECT TO THE PLAN.

AND CURRENTLY I THINK THE PURCHASE PRICE IS LISTED.

ALEX WILL HAVE A AN ITEM IN REGARDS TO THE ACTUAL CONTRACT OF THAT ITEM, BUT I WANTED TO INCLUDE THAT AS PART OF THE THE TIF TWO PLAN IN REGARDS TO THE AMENDMENT OF THE PROJECT AND THE FINANCING AS WELL.

SO IN THIS PARTICULAR ITEM, IT'S GOING TO BE THE PURCHASE OF THE LAND.

IN ADDITION TO THAT WILL BE THE CONSTRUCTION OF THE PARKING LOT.

AGAIN ITS ADDITIONAL INFORMATION REGARDING THAT, ALEX WILL GO INTO MORE DETAIL IN REGARDS TO WHAT EXACTLY IS THAT PARKING LOT GOING TO LOOK LIKE.

[00:05:07]

SO IN THE BUDGET AMENDMENT WE'RE ASKING FOR IS, IS THE 200,000 ANOTHER IN ESSENCE, 192,000 OF THAT FOR THE RENFRO AND JOHNSON PEDESTRIAN IMPROVEMENT, 450,000 FOR THE PURCHASE OF THE LOT.

AND THEN IT WILL ALSO BE PART OF THE CONSTRUCTION OF THE PARKING LOT.

THAT PART OF IT WILL COME IN NEXT FISCAL YEAR WHEN WHEN THE ACTUAL CONSTRUCTION IS DETERMINED AND HOW THAT'S GOING TO BE FUNDED.

SO THE MAIN BUDGET AMENDMENT, FOCAL POINT IS REALLY TO PURCHASE THE LOT OF $450,000.

AND THEN IN ADDITION TO THAT, WE ISSUED BONDS FOR THE TIFF AS SELF-SUPPORTING DEBT AND THE 2023 DEBT SERVICE PAYMENT IS $224,000. THE FUNDING IS AVAILABLE.

IT WAS PART OF THE BOND SALE.

IT WAS JUST NOT INCLUDED AS PART OF THE ADOPTED BUDGET.

SO I WANTED TO MAKE SURE WE ADDED THAT AS AND KIND OF CLEAN UP AND TRUE UP OF THAT BUDGET PROCESS IS THERE.

AND SO AGAIN, IT IS THREE ITEMS FOR 200,000 FOR THE RENFRO JOHNSON PEDESTRIAN, WHICH WAS PART OF THE PLAN, THE 450,000 TO PURCHASE THE BANK LOT FOR PARKING CONSTRUCTION AND THEN THE 224,000 FOR THE BOND DEBT SERVICE PAYMENT AND.

THE ACTION IS TO ONE TO APPROVE OR DENY THE RESOLUTION AMENDING THE PROJECT AND FINANCING PLAN OR AND ALSO THE OTHER ITEM IS TO APPROVE OR DENY THE RESOLUTION AMENDING THE BUDGET AMENDMENT ORDINANCE.

THOSE ARE THE TWO ITEMS THAT I BRING FORWARD TO YOU ALL TODAY.

AND YOU HAVE ANY QUESTIONS OR COMMENTS.

THE 192,000 THAT WAS APPROPRIATED BEFORE.

IS THAT REALLY JUST A BUDGET AMENDMENT JUST TO MOVE ANY THAT MONEY [INAUDIBLE] WE'RE JUST GOING TO MOVE IT INTO THIS LINE ITEM NOW TO THIS.

THAT IS CORRECT. FOR THOSE THAT MAY NOT BE INTIMATELY FAMILIAR WITH THE WORKINGS OF A TAX INVESTMENT REINVESTMENT OR TAX REINVESTMENT INCREMENT REINVESTMENT ZONE, I CAN'T EVEN SAY IT.

I DON'T HAVE TO EXPLAIN IT.

BUT THE PURPOSE OF A TIF IN THIS CASE IS TO TAKE A CERTAIN AREA AND TURN IT INTO A GENERATOR OF AD VALOREM TAXES.

IT STARTS BY ESTABLISHING A BASE TAX VALUE FOR THAT AREA AND THEN CAPTURING THE INCREASED TAX REVENUES FROM DEVELOPMENT THAT TAKES PLACE WITHIN THAT AREA AND CONFINING THE EXPENDITURE OF THOSE FUNDS TO THE AREA ITSELF IN ORDER TO CONTINUALLY IMPROVE IT.

IT'S A VERY RESPONSIBLE WAY TO CREATE A BUILDING EFFECT WHERE DEVELOPMENT LEADS TO MORE DEVELOPMENT AND BETTER FACILITIES TO SUPPORT THE DEVELOPMENT.

AND LOOKING AT OLD TOWN AS A DEVELOPMENT, I CAN'T THINK OF ANY MORE APPROPRIATE WAY TO SPEND MONEY THAN TO CREATE MORE WALKABILITY AND TO CREATE MORE PARKING.

SO I'M GLAD TO SEE THIS COME FORTH AND I THINK THE EXPENDITURES ARE PERFECTLY APPROPRIATE FOR THE TIF.

SO I HAVE NO OBJECTION TO DOING THIS WHATSOEVER.

SO COUNCIL MEMBERS, ANY OTHER COMMENTS? SO I'LL NEED A MOTION ON ITEM FIRST ON ITEM THREE B.

GOOD THING. ALL RIGHT. I HAVE A FIRST BY HOWELL, THE SECOND BY FLETCHER.

ALL THOSE IN FAVOR.

THAT MOTION PASSES BY UNANIMOUS VOTE.

I'LL ALSO NEED A MOTION ON ITEM THREE C TO CONSIDER THE BUDGET AMENDMENT.

MOTION BY HOWELL, SECOND BY FLETCHER ALL THOSE IN FAVOR.

AND THAT ITEM PASSES BY UNANIMOUS VOTE.

WHICH BRINGS US TO ITEM THREE D, WHICH IS TO CONSIDER APPROVAL OF A RESOLUTION SUPPORTING THE CITY OF BURLESON'S APPROVAL OF A REAL

[3D. Consider approval of a resolution supporting the City of Burleson’s approval of a real estate purchase contract. (Staff Presenter: Alex Philips, Economic Development Director)]

GOOD EVENING PRESIDENT MEMBERS, ALEX PHILLIPS, ECONOMIC DEVELOPMENT DIRECTOR FOR THE CITY OF BURLESON.

SO THE LOT IN QUESTION IS 0.264 OF AN ACRE.

IT'S RIGHT ACROSS THE STREET FROM THE PLAZA ON WARREN STREET.

IT'S CURRENTLY BEING USED AS A PARTIAL PARKING AREA AS WELL AS A GRASS LOT THAT'S BEEN THERE FOR YEARS.

WE DID DO A THIRD PARTY APPRAISAL.

THE APPRAISAL DID COME BACK AT $450,000.

THE CONTRACT PRICE ON THE PROPERTY, THE PURCHASE PRICE IS 450,000.

[00:10:01]

THERE IS ONE DEED RESTRICTION THAT INDEPENDENT BANK WANTED, AND THAT WAS NO FINANCIAL INSTITUTION ON THE PROPERTY.

SO WE CAN AGREE TO THAT.

IT DOES LEAVE FLEXIBILITY IN THE FUTURE TO BE DEVELOPED IF DESIRED.

IT DOESN'T HAVE TO ALWAYS BE A PARKING LOT.

THE COMPS ON THE APPRAISAL RANGE FROM $27 A FOOT TO $40 A FOOT.

THAT'S ALL OVER THE PLACE DOWN HERE AND IN TOWN.

SO HERE'S JUST A HIGH LEVEL KIND OF DRAWING THAT OUR ENGINEERING DEPARTMENT KIND OF DID IN-HOUSE.

IT WOULD PROVIDE 30 NEW PARKING SPACES, WOULD MATCH EXISTING PARKING LOTS IN THE OLD TOWN DISTRICT.

ESTIMATED COST OF CONSTRUCTION IS AROUND 500,000.

THE DESIGN WOULD HAPPEN IN-HOUSE WITH EXISTING ENGINEERING CAPITAL STAFF.

THE WEST PARKING LOT WAS CONSTRUCTED IN A WAY THAT IF WE DID SECURE THIS SITE, WE COULD EXTEND AND CONNECT THE TWO LOTS.

CONSTRUCTION WOULD MORE LIKELY BE IN FISCAL YEAR 24.

SO THE OPTIONS TONIGHT, IN FRONT OF YOU APPROVE THE RESOLUTION AUTHORIZING THE CONTRACT WITH INDEPENDENT BANK AND AUTHORIZING THE EXPENDITURE OF THE FUNDS OR DENY THE RESOLUTION.

ANY QUESTIONS? YEAH.

ALL RIGHT. WELL, I'M GLAD THAT INDEPENDENT BANK IS WILLING TO MAKE THIS TRANSACTION.

I THINK IT'S HIGH TIME SOMETHING HAPPENED WITH THIS PIECE OF LAND.

AND IT'S GOOD TO KNOW THAT AS THE PLAZA AREA AND ITS IMMEDIATE SURROUNDINGS GROW, THAT THIS CAN BE A VERY GOOD SERVICE AS A PARKING LOT AND THEN CAN ALSO LATER BE ANYTHING BUT A BANK, WHICH IS PERFECTLY FINE WITH ME BECAUSE I DON'T THINK WE NEED ANOTHER BANK IN DOWNTOWN.

SO. ALL RIGHT.

SO CAN I HAVE A MOTION FOR THAT? I'LL MAKE A MOTION TO APPROVE 3D.

SECOND. ALL RIGHT.

MOTION BY FLETCHER. SECOND BY HOWELL.

ALL THOSE IN FAVOR.

ALL RIGHT. MOTION PASSES BY UNANIMOUS VOTE.

HAVE WE A NEED FOR EXECUTIVE SESSION THIS EVENING? NO, SIR, WE DO NOT.

ALL RIGHT, THEN WE WILL ADJOURN THE MEETING OF THE TIF TWO BOARD AT 5:13.

* This transcript was compiled from uncorrected Closed Captioning.