HomeMy WebLinkAbout2019-R-23 - TIRZ No. 1 Reimbursement to City RESOLUTION NO. 2019-R-23
A RESOLUTION APPROVING USE OF TIRZ NUMBER ONE REVENUE FOR FUNDING OF POTENTIAL ELIGIBLE
PROJECT COSTS OF TIRZ NUMBER ONE.
WHEREAS, as authorized by Chapter 311 of the Texas Tax Code (the "Act") and pursuant to
Ordinance No. 2019-0-14, adopted by the City Council of the City of Stephenville, Texas (the "City") on
April 25,2019,the City created Tax Increment Reinvestment Zone Number One,City of Stephenville,Texas
(the "Zone"); and
WHEREAS, pursuant to Ordinance No. 2019-0-14 the City created the Board of Directors
(hereinafter referred to as"Board")for the Zone; and
WHEREAS,in accordance with the Act,the Board shall make recommendations to the City Council
concerning the administration, management and operation of the Zone; and
WHEREAS,on May 7,2019 the Board approved the project and financing plan(the"TIRZ Numberl
Financing Plan") for the Zone; and
WHEREAS, the Financing Plan includes both public infrastructure improvements and
improvements intended to stimulate economic and tax base growth in the Zone and provides for the
establishment of a tax increment fund (the "TIRZ Fund") to which the TIRZ Revenues (as defined below)
shall be deposited; and
ABMS
WHEREAS, the Financing Plan as approved and amended to the date of adoption hereof is
attached hereto as Exhibit A; and
WHEREAS, pursuant to Ordinance No.2019-0-15 adopted by the City Council on May 7, 2019,the
City Council has approved the TIRZ Number One Financing Plan; and
WHEREAS,the project and financing plan details the infrastructure costs eligible for payment with
incremental tax revenues generated in the Zone (the "TIRZ Revenues"); and
WHEREAS,on June 25,2019,the Board approved the use of TIRZ Revenues to fund eligible project
costs included in the TIRZ Number One Financing Plan, whether as a reimbursement to the City of costs it
may pay for such projects, for direct payment of TIRZ project costs or to pay City Debt Obligations (as
defined below); and
WHEREAS, in addition to the direct payment for costs of Zone Projects (as defined below), or for
reimbursement of such costs paid by the City, TIRZ Revenues may be used to secure and/or pay debt
service on obligations issued by the City pursuant to the Act or other applicable State laws for the purpose
of financing costs of Zone Projects ("City Debt Obligations"); and
WHEREAS,the initial projects intended to be undertaken for the benefit of the City and the Zone
and to be funded in whole or in part with TIRZ Revenues include a project consisting of approximately
30.98 acres of commercial development for expansion of retail shopping in the City, which is located
generally bound by Washington Street to the south and Reta Avenue to the east in the City, to be
developed as further described in the attached TIRZ Number One Financing Plan,and other eligible public
infrastructure improvements permitted by the Act to be constructed with TIRZ Revenues that are located
within the Zone (the "Public Infrastructure Projects"); and
WHEREAS, the City Council finds that the use of Zone Revenues for the projects described above
and/or included in the TIRZ Number One Financing Plan, as such plan may be amended from time to time
in accordance with the Act, including the CS Project and the Public Infrastructure Projects (collectively,
the "Zone Projects") will benefit the City and further the purposes of the Zone in accordance with the Act
and may provide a payment source for City Debt Obligations issued to finance Zone Projects; and
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STEPHENVILLE,TEXAS:
SECTION 1. The recitals set forth above and the attachment hereto are hereby incorporated into
this Resolution and made a part hereof for all purposes;
SECTION 2. The City hereby agrees to accept Zone Revenues that may be generated within the
Zone and deposited in accordance with the TIRZ Number One Financing Plan into the
TIRZ Fund.
SECTION 3. The City hereby agrees to apply Zone Revenues for payment of costs of eligible Zone
Projects that the Council has or will approve as part of its oversight of the Zone in
accordance with the Act;that incremental tax revenues collected in the Zone may be
applied directly by the City for payment of Zone Projects or to reimburse the City for
TIRZ Projects costs that may be paid with lawfully available City moneys; and that
Zone Revenues may be applied in the discretion of the City Council for the payment
of City Debt Obligations issued to fund costs of the TIRZ Projects.
SECTION 4. This resolution shall take effect from and after its final date of passage, and is
accordingly so resolved and ordered.
PASSED and APPROVED this 25th day June, 2019.
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kl '•,2��: Doug Svien, ayor
Attest:
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,may. s *
Staci L. ing, City Secret 0 R
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Reviewed by Allen L. Barnes,
City Manager
Approved as to form and legality by
Randy Thomas, City Attorney