File #: TIF17-004    Version: 1 Name:
Type: Tax Increment Reinvestment Zone Number One Board
File created: 7/12/2017 In control: Tax Increment Reinvestment Zone Number One Board
On agenda: 7/21/2017 Final action:
Title: Receive a report and hold a discussion regarding the 2016 Tax Increment Reinvestment Zone Number One (Downtown TIF) Annual Report.
Attachments: 1. Exhibit 1- AIS 2016 Annual Report TIF, 2. Exhibit 2- 2016 Annual Report, 3. 2016 TIF Annual Report
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Agenda Information Sheet

Tax Increment Reinvestment Zone Number One (Downtown TIF) Board

 

DEPARTMENT:                     Economic Development

 

CM/ DCM/ ACM:                     Bryan Langley

 

Date:                                                               July 21, 2017

 

SUBJECT

Title

Receive a report and hold a discussion regarding the 2016 Tax Increment Reinvestment Zone Number One (Downtown TIF) Annual Report.

Body

 

BACKGROUND

On December 7, 2010, the City Council adopted an Ordinance No. 2010-316 designating and describing the boundaries of Tax Increment Reinvestment Zone Number One (Downtown TIF) to provide the public infrastructure necessary to encourage development in downtown.  An annual report, detailing the previous year’s TIRZ activities, is required to be submitted to each taxing jurisdiction and the State Comptroller of Public Accounts. 

 

The Downtown TIF took effect on January 1, 2011, and will terminate on December 31, 2041, or when the budget of $24.8 million has been collected.  The City of Denton is the sole participating jurisdiction.

 

At the January 16, 2015, meeting, the Board voted in favor of using Downtown TIF Number One funds for a Chapter 380 incentive for a catalyst project located within the TIF District.

The Rail Yard downtown project is located in TIF Number One, the Downtown Implementation Plan (DTIP) area and Transit Oriented Development (TOD) area.Rail Yard Partners, LTD, has renovated an existing 28,000 square foot building as a part of a larger transit-oriented catalyst project that includes office, retail and restaurant space along with multi-family housing. The Agreement involves an annual grant in the amount of $76,000 for five years, for a total incentive of $380,000.

During calendar year 2016, $458,739 was collected after the end of the supplemental period determined by the City of Denton.  An additional $1,676 in interest brings the total contribution in 2016 to $460,415. 

 

According to Denton Central Appraisal District (DCAD) supplemental figures, the 2016 total appraised valuation of taxable real property in TIRZ Number One was $150.0 million.  This represents a $22.8 million increase from the 2015 supplemental value of $127.2 million.  The annual TIRZ fund contribution of property taxes and interest income for 2016 is $460,415.  Since its inception, the value of the TIRZ has increased an estimated $70.7 million, which represents an 89.0% increase in valuation.

 

 

 

 

 

Certified and Supplemental TIRZ No. 1 Contribution Summary

Year

TIRZ Certified Value

Supplement TIRZ Value

Annual Captured Supplement Value

Supplement Contribution to TIRZ Fund

Interest

Total TIRZ Fund

2010

79,356,854

79,356,854

N/A

N/A

N/A

N/A

2011

81,657,808

80,331,050

$974,196

6,720

17

6,737

2012

89,605,635

93,040,263

$13,683,409

94,381

297

94,678

2013

96,287,950

100,452,300

$21,095,446

145,506

1,084

146,590

2014

114,885,073

116,769,435

$37,412,581

258,053

2,821

260,874

2015

118,440,576

127,204,599

$47,847,745

330,030

5,855

335,885

2016**

136,021,478

150,021,979

$70,665,125

458,739

1,676

460,415

Totals

 

 

$121,013,377

1,293,429

11,750

1,305,179

*95% contribution from decreasing ratio begins  Interest is earned through 12/31/16

 

 

 

 

STRATEGIC PLAN RELATIONSHIP

The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision.  The foundation for the plan is the five long-term Key Focus Areas (KFA):  Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship.  While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal:

 

Related Key Focus Area:                      Economic Development

Related Goal:                                                               3.4 Encourage development, redevelopment, recruitment, and retention

 

EXHIBITS

Exhibit 1 - AIS

Exhibit 2 - 2016 Downtown TIF Annual Report

                                                                                                                                                   

Respectfully submitted:

Caroline Booth

Director of Economic Development

 

Prepared by:

Julie Glover

Economic Development Program Administrator