HomeMy WebLinkAboutOrdinance No. 2025-2632CITY OF THE COLONY, TEXAS
ORDINANCE NO. 2025 - 2-(032-
AN
1032
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE
COLONY, TEXAS, AMENDING ORDINANCE NO. 2011-1929, BY
APPROVING A FIRST SUPPLEMENT TO FINAL PROJECT AND
REINVESTMENT ZONE FINANCING PLAN, BY APPROVING
ADDITIONAL TIF PROJECT COSTS FOR TAX INCREMENT
REINVESTMENT ZONE NUMBER ONE, CITY OF THE COLONY,
TEXAS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A
REPEALER CLAUSE; AND PROVIDING FOR AN IMMEDIATE
EFFECTIVE DATE.
WHEREAS, on November 8, 2011, the City Council of the City of The Colony, Texas,
pursuant to Chapter 311 of the Texas Tax Code, approved Ordinance No. 2011-1926, designating
a contiguous geographic area within the City as a Reinvestment Zone Number One, City of The
Colony, Texas; and
WHEREAS, on November 15, 2011, the City Council of the City of The Colony, Texas,
pursuant to Chapter 311 of the Texas Tax Code, approved Ordinance No. 2011-1929, approving a
Final Project and Financing Plan for Reinvestment Zone Number One, City of The Colony, Texas;
and
WHEREAS, Section 311.011(e) of the Texas Tax Code provides the authority for the
Board of Directors for Reinvestment Zone Number One, City of The Colony, Texas, to approve
amendments to projects plans; and
WHEREAS, on November 18, 2025, the Board of Directors for Reinvestment Zone
Number One, City of The Colony, Texas, approved a First Supplement to Final Project and
Reinvestment Zone Financing Plan for Tax Increment Reinvestment Zone Number One, City of
The Colony, Texas, a copy of which is attached hereto as Exhibit A; and
WHEREAS, Section 311.011(e) of the Texas Tax Code also provides that City Council's
approval of amendments to the project plan must be by ordinance adopted after published notice
and a public hearing consistent with Sections 311.003(c) and (d) of the Texas Tax Code; and
WHEREAS, the City Council of the City of The Colony, Texas, now desires to approve
the First Supplement to Final Project and Reinvestment Zone Financing Plan for Tax Increment
Reinvestment Zone Number One, City of The Colony, Texas, a copy of which is attached hereto
as Exhibit A.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF THE COLONY, TEXAS:
SECTION 1. FINDINGS.
That the facts and recitations contained in the preamble of this Ordinance are hereby found
and declared to be true and correct legislative findings and are adopted as part of this Ordinance
for all purposes.
SECTION 2. AMENDMENT.
That the City Council of the City of The Colony, Texas, does hereby approve the First
Supplement to Final Project and Reinvestment Zone Financing Plan for Tax Increment
Reinvestment Zone Number One, City of The Colony, Texas, a copy of which is attached hereto
as Exhibit A, and is incorporated herein for all purposes.
SECTION 3. SEVERABILITY CLAUSE.
If any provision, section, subsection, sentence, clause or phrase of this Ordinance, or the
application of same to any person to set circumstances, is for any reason held to be
unconstitutional, void or invalid, the validity of the remaining provisions of this Ordinance or their
application to other persons or set of circumstances shall not be affected thereby, it being the intent
of the City Council in adopting this Ordinance that no portion hereof or regulations connected
herein shall become inoperative or fail by reason of any unconstitutionality, voidness or invalidity
of any portion hereof, and all provisions of this Ordinance are declared severable for that purpose.
SECTION 4. REPEALER CLAUSE.
Any provision of any prior ordinance of the City whether codified or uncodified, which are
in conflict with any provision of this Ordinance, are hereby repealed to the extent of the conflict,
but all other provisions of the ordinances of the City whether codified or uncodified, which are not
in conflict with the provisions of this Ordinance, shall remain in full force and effect.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect immediately upon its passage and it is accordingly so
ordained.
PASSED AND APPROVED BY THE CITY OF THE COUNCIL OF THE CITY OF
THE COLONY, TEXAS, THIS THE 2ND DAY OF DECEMBER 2025.
Richard Boyer, Mayor
City of The Colony, T
ATT 5 l
Tina Stewart, TRMC, CMC, City Secretary
APPROVED AS TO FORM:
ExhibitA
First Supplement to Final Project and Reinvestment Zone
Financing Plan for Tax Increment Reinvestment Zone
Number One, City of The Colony, Texas
FIRST SUPPLEMENT
TO
FINAL PROJECT AND
REINVESTMENT ZONE FINANCING PLAN
FOR
TAX INCREMENT REINVESTMENT ZONE NUMBER
ONE, CITY OF THE COLONY, TEXAS
November 18, 2025
Page 1
1775.015\1058870.5
1. INTRMUCTIay.
1.1 Defined Terms. Words and phrases with their initial letters capitalized that are
used in, but not defined in, this Section 1 are defined in Section 2. Unless otherwise specified, all
references to "Section" mean a section of this 2025 First Supplement.
1.2 TIF Projects and TIF Project Costs. The statute that governs tax increment
financing is the Tax Increment Financing Act, Chapter 311, Texas Tax Code, as amended (the
"Act"). Tax increment financing is an economic development tool available for an area
designated by the City as a reinvestment zone to pay for: (i) public works within and outside
such zone; (ii) public improvements within and outside such zone; (iii) programs for the public
purpose of economic development within such zone to facilitate and/or pay for projects that
benefit such zone, develop and diversify the economy of such zone, and stimulate business and
commercial activity within such zone; including, but not limited to, programs under Chapter 380,
Texas Local Government Code, as amended; (iv) other projects that benefit such zone; and (v)
costs and expenses incidental to the foregoing works, improvements, programs, and projects (all
of the foregoing are collectively referred to as the "TIF Projects" and the costs thereof as "TIF
Project Costs") from all or a portion of: (A) increased ad valorem taxes collected by the City and
other participating taxing units from within such zone and attributable to new development
within such zone; (B) increased sales and use taxes collected by the City within such zone and
attributable to new development within such zone and (C) all revenue described in
Section 311.014(a) of the Act. The 2011 Final Project and Finance Plan describes the original
Public Works Projects, Economic Development Projects, and Economic Development Programs
that comprise the TIF Projects in detail.
1.3 The Zone the Facilily and Related Development; Colin Participation. As
required by the Act, the City prepared a preliminary reinvestment zone financing plan titled
"Preliminary Reinvestment Zone Financing Plan for Tax Increment Reinvestment Zone Number
One, City of The Colony, Texas," which was made available for public inspection on
November 1, 2011, and was approved by the City Council on November 8, 2011. On November
8, 2011, the City Council also adopted Ordinance No. 2011-1926 (the "Zone Creation
Ordinance) designating an area as Tax Increment Reinvestment Zone Number, One, City of The
Colony, Texas (the "Zone"), in accordance with the Act. At the time of creation, the Zone
consisted of approximately 433 open and undeveloped acres located within the corporate limits
of the City. The City created the Zone to promote economic development that but for the
creation of the Zone would not otherwise occur. As described by the 2011 Final Project and
Finance Plan, the Zone contains: (i) a mixed-use facility on approximately 90 acres, which
facility includes approximately 1,280,000 square feet for warehouse and distribution uses,
approximately 25,000 square feet for a regional corporate headquarters, and approximately
546,000 square feet for retail sales to the general public (the "Facili "); and (ii) the remainder of
the land within the Zone that has been or will be developed as a mixed-use project (the "Related
Development") and includes or will include the following: (A) entertainment, tourism,
recreation, and convention facilities that attract tourists, visitors, and shoppers from a wide
geographic region; (B) hotels, retail stores, concessions, restaurants, and other facilities related to
the entertainment, tourism, recreation, and convention uses; (C) public facilities for municipal
use; (D) other retail and commercial facilities; and (E) public parking to serve the foregoing. In
the Zone Creation Ordinance, the City Council and the Board determined that development of
Page 2
1775.015\1058870.5
the Facility and Related Development would not occur solely through private investment in the
foreseeable future. Moreover, the City Council and the Board determined that, at the time of
creation, the property within the Zone substantially impaired and arrested the sound growth of
the City because the Zone was predominately open and undeveloped due to factors such as the
need for essential public infrastructure and the need for economic development programs that
establish financial incentives (including, but not limited to, payments and/or grants that are
intended to be contributions to capital) to attract new business and commercial activity to the
Zone for the purpose of providing long-term economic benefits including, but not limited to,
increases in the real property tax base for all taxing units within the Zone, increases in sales and
use tax for the City and the State of Texas, and increased job opportunities for residents of the
City, the County, and the region.
On November 15, 2011, and following the recommendation of the Board, the City
Council adopted Ordinance No. 2011-1929 (the "2011 Final TIRZ Plan Approval Ordinance")
approving the Final Project and Reinvestment Zone Financing Plan for Tax Increment
Reinvestment Zone Number One, City of The Colony, Texas, dated November 15, 2011 (the
"2011 Final Project and Finance Plan"). Also on November 15, 2011, the City Council adopted
Ordinance No. 2011-1931 (the "2011 Cognty TIRZ Agreement A rovai Ordinance") approving
the Agreement to Participate in Tax Increment Reinvestment Zone Number One, City of The
Colony, effective as of November 15, 2011 (the "County Tax Increment Participation
Agreement"), by and between the City and the County, under which the County participates in
the Zone by depositing the County Tax Increment into the Tax Increment Fund pursuant to the
County Tax Increment Participation Agreement. Unless otherwise approved by the governing
body of the County, the County Tax Increment shall only be used to pay Public Works Project
Costs (excluding, however, any costs related to land for or the construction of any municipal
buildings).
1.4 The Bond Validation Suit. In order to provide certainty for the proposed structure
to finance the TIF Projects, including the Economic Development Programs, Economic
Development Projects, and Public Works Projects, the City filed Cause No. D -1 -GV -11-001995
styled Ex Parte City of The Colony, in Travis County, Texas, on December 11, 2011, seeking an
expedited declaratory judgment under Chapter 1205 of the Texas Government Code, as
amended, confirming, among other things, the validity of the creation of the Zone, the pledge of
certain revenues to the issuance of revenue bonds and contractual obligations, including revenues
deposited in the Tax Increment Fund, and the authority to finance the TIF Projects. On
January 18, 2012, the 53rd District Court of Travis County entered a final judgment (the "Final
Ju�ment") validating, among other things, the designation of the Zone, the Zone Creation
Ordinance, the 2011 Final TIRZ Plan Approval Ordinance (including the 2011 Final Project and
Finance Plan), and the 2011 County TIRZ Agreement Approval Ordinance (including the
County Tax Increment Participation Agreement). To the extent of a conflict between this 2025
First Supplement and any documents and proceedings validated by the Final Judgment,
including, but not limited to, the Zone Creation Ordinance, the 2011 Final TIRZ Plan Approval
Ordinance, the 2011 Final Project and Finance Plan, the 2011 County TIRZ Agreement
Approval Ordinance, and the County Tax Increment Participation Agreement, the documents and
proceedings validated by the Final Judgment shall control.
Page 3
1775.015\1058870.5
1.5 Qualified State Rebate Project and Qualified State Rebate Project Master
Development Agreement. On 52025, the City Council adopted Ordinance No.
approving execution of The Colony Hotel and Convention Center Chapter 380
Agreement, by and between the City and LMG Ventures, LLC (the "Qualified State Rebate
Project Master Development Agreement") for the construction of a "qualified project" consisting
of a "qualified hotel", "qualified convention center facility", and related improvements
(collectively, the "Qualified State Rebate_ Project") under Subchapter C of Chapter 351 of the
Texas Tax Code, as amended. The Qualified State Rebate Project will be located within the
Zone.
1.6 Implementation. To facilitate development of the Facility and Related
Development the Board and the City Council: (i) approved the 2011 Final Project and Finance
Plan for the Zone and the County Tax Increment Participation Agreement; (ii) the Board and the
City entered into multiple agreements related to the construction and financing of the TIF
Projects; (iii) the 431 Corporation issued TIF Obligations to finance a portion of the TIF Project
Costs; (iv) the City, pursuant to the Act and in accordance with the 2011 Final Project and
Finance Plan, sold certain Economic Development Projects; and (v) the Board and the City
approved the programs created under the 2011 Final Project and Finance Plan and the
380 Incentive Program. To facilitate continued development of the Related Development and the
Qualified State Rebate Project, the Board and the City find it necessary to supplement the 2011
Final Project and Finance Plan through approval of this First Supplement to the Final Project
and Reinvestment Zone Financing Plan for Tax Increment Reinvestment Zone Number One, City
of The Colony, Texas, dated November 18, 2025 (this "2025 First Supplement," and together
with the 2011 Final Project and Finance Plan referred to collectively as the "Final Project and
Finance Plan"). The Board reviewed and approved a preliminary draft of this 2025 First
Supplement on November 18, 2025. The City Council held a public hearing on the approval of
this 2025 First Supplement on November 5, 2025, and the public hearing was continued to
November 18, 2025. On November 18, 2025, the Board approved the 2025 First Supplement and
recommended approval of this 2025 First Supplement to the City Council. After publishing
notice of the November 5, 2025 public hearing and holding such public hearing, and continuing
said public hearing and action to November 18, 2025, in accordance with the Act at which time
all interested persons were given the opportunity to speak for or against approval of this 2025
First Supplement, the City Council closed the public hearing and, on recommendation of the
Board, adopted Ordinance No. 2025-2631 approving this 2025 First Supplement (the "2025 First
Supplement Approval Ordinance").
2. DEFINITIONS. Words or phrases used in this 2025 First Supplement that have their
initial letters capitalized shall have the meanings given to them in this Section 2 unless the
context in which the words or phrases are used clearly requires a different meaning.
"2011 County TIRZ Agreement Approval Ordinance" means Ordinance No. 2011-1931 adopted
by the City Council on November 15, 2011, approving the County Tax Increment Participation
Agreement.
"2011 Final Project and Finance Plan" means the Final Project and Reinvestment Zone
Financing Plan for Tax Increment Reinvestment Zone Number One, City of The Colony, Texas,
Page 4
1775.015\1058870.5
dated November 15, 2011, approved by the Board on November 14, 2011 and the City Council
on November 15, 2011 by adoption of the 2011 Final TIRZ Plan Approval Ordinance.
"21311 Final TIRZ Plan Approval Ordinance" means Ordinance No. 2011-1929 adopted by the
City Council on November 15, 2011 approving the 2011 Final Project and Finance Plan.
"2021 Amended and Restated Management Agreement" means the Amended and Restated
Management Agreement, effective February 23, 2021, by and between the City, the Board, and
the 431 Corporation.
"2021 Tax Increment Refunding Bands" means The Colony Local Development Corporation Tax
Increment Contract Revenue Refunding Bonds (Nebraska Furniture Mart Texas Project) Taxable
Series 2021, issued by the 431 Corporation and secured by the City Tax Increment and the
County Tax Increment.
"2025 First Supplement" means this First Supplement to the Final Project and Reinvestment
Zone Financing Plan for Tax Increment Reinvestment Zone Number One, City of The Colony,
Texas, dated November 18, 2025.
"2025 First Supplement Approval Ordinance" means Ordinance No. 2025-2631 adopted by the
City Council on November 18, 2025, that approved the 2025 First Supplement.
"380 Incentive Program" means that 380 incentive program approved by Ordinance No. 2011-
1935 adopted as part of the City's Comprehensive Economic Development Policy.
"431 Co oration" means the local government corporation created and controlled by the City as
an instrumentality of the City pursuant to Subchapter D, Chapter 431, Texas Transportation
Code, as amended.
"Act" is defined in Section 1.2.
"Board" means the Board of Directors of the Zone.
"Ciff" means the city of The Colony, Texas, a home -rule municipal corporation.
"City Council" means the governing body of the City.
"City Sales Tax Increment" means the amount or portion of the Sales Tax Increment that the City
determines is required: (i) to (1) pay TIF Obligations secured by the City Sales Tax Increment
for that year; (2) establish or maintain debt service or similar reserves required for such
obligations; and (3) pay prior year shortfalls attributable to such obligations (i.e., amounts by
which the TIF Obligations secured by the City Sales Tax Increment for any prior year exceeded
the available City Sales Tax Increment for such year); and (ii) to pay any other obligations
incurred for the Zone including, but not limited to, any agreements made under Section
311.010(b) of the Act dedicating revenue from the Tax Increment Fund; provided, however, that
the amount or portion described in (i) and (ii) above shall never exceed ninety percent (90%) of
the Sales Tax Increment. The amount, if any, by which the City Sales Tax Increment for a year
Page 5
1775.015\1058870.5
exceeds the amount required to pay (i) and (ii) above is not part of the City Sales Tax Increment
and therefore shall not be deposited into the Tax Increment Fund.
"Cily Tax Increment" means one hundred percent (100%) of the Tax Increment for the City.
"Ci Tax Increment Subaccount" means the subaccount within the Tax Increment Subaccount of
the Tax Increment Fund into which the City must deposit the City Tax Increment minus the
amounts required to be deposited in accordance with the trust indenture securing the 2021 Tax
Increment Refunding Bonds and the amounts required to be deposited into the City Tax
Increment (50 -acre) Subaccount in accordance with the 2021 Amended and Restated
Management Agreement.
"City Tax Increment ,50 -acre) Subaccount" means the subaccount within the Tax Increment
Subaccount of the Tax Increment Fund into which the City must deposit the City Tax Increment
collected from the property taxes of certain designated real property within the Zone in
accordance with the 2021 Amended and Restated Management Agreement.
"Cily Tax Increment Subaccount - Debt Service Reserve Fund" — means the segregated fund
within the City Tax Increment Subaccount within the Tax Increment Subaccount of the Tax
Increment Fund in which the City, on behalf of the Board, shall retain $190,000 in City Tax
Increment and which may be used solely to pay debt service on the 2021 Tax Increment
Refunding Bonds.
"City Tax Increment Subaccount — Capital Project Annual Reserve Fund" means the segregated
fund within the City Tax Increment Subaccount within the Tax Increment Subaccount of the Tax
Increment Fund into which the City, on behalf of the Board, shall make the transfers described in
Section 3.4 below and which may be used solely to pay the Qualified Costs of the Public Works
Projects described in Section 3.2 below.
"Conn " means Denton County, Texas.
"Coup Tax Increment Partici ation A eement" means an agreement between the City and the
County (to which agreement the Developer is a third -party beneficiary) pursuant to which the
County agrees to pay the County Tax Increment into the Tax Increment Fund as provided in this
Final Project and Finance Plan.
"County Tax Increment" means ninety percent (90%) of the Tax Increment for the County.
"Developer" means LMG Ventures, LLC and TXFM, Inc. or an affiliate, assignee, or transferee
thereof.
"Economic Development Grants" are defined in Section 10 of the 2011 Final Project and Finance
Plan and supplemented by Section 3.5 below.
"Economic Development Programs" are described in Section 10 of the 2011 Final Project and
Finance Plan and supplemented by Section 3.5 below.
Page 6
1775 015\1058870.5
"Economic Development Project Costs" are defined in Section 9 of the 2011 Final Project and
Finance Plan.
"Economic Development Projects" are defined in Section 1.6 and described in Section 9 of the
2011 Final Project and Finance Plan.
"Economic Feasibility Study" is defined in Section 8 of the 2011 Final Project and Finance Plan.
"Facili " is defined in Section 1.3.
"Final dud ent" is defined in Section 1.5.
"Final Project and Finance Plan" means, collectively, the 2011 Final Project and Finance Plan
and the 2025 First Supplement, as the same may be updated and supplemented by the Board and
the City in the future.
"Preliminary Finance Plan" means the Preliminary Reinvestment Zone Financing Plan for Tax
Increment Reinvestment Zone Number One, City of The Colony, Texas, dated November 8, 2011.
"Public Works Project Costs" are defined in Section 6.5 of the 2011 Final Project and Finance
Plan as supplemented by Section 3.2 below.
"Public Works Projects" are defined in Section 1.5 and described in Section 6 of the 2011 Final
Project and Finance Plan as supplemented by Section 3.1 below.
"Qualified Costs" are included in TIF Project Costs as defined in Section 311.002 of the Act, as
amended, and include, but are not limited to: (i) costs of design and construction including, but
not limited to, costs of preparing the site for construction and costs of work performed because
of environmental considerations; (ii) costs of services of architects, engineers, construction
managers, third -party developers, and contractors; (iii) reasonable costs of legal counsel of the
City, the County, the 431 Corporation, and the Developer with respect to negotiating and
consummating all documents contemplated by the Final Project and Finance Plan;
(iv) reasonable fees and expenses of agencies having jurisdiction over the financing of the
Facility, financial advisors, financial printers, bond counsel, legal counsel, underwriters, escrow
agents, trustees, and other persons incurred in connection with the implementation of the Final
Project and Finance Plan; (v) capitalized interest and reserve funds required in connection with
any TIF Obligations; (vi) costs of acquiring the site including title work, surveys, inspections,
engineering reports, real estate commissions, and legal fees and expenses; (vi) costs of furnishing
and equipping the Facility; and (vii) any reasonable costs incurred by the Developer, the City,
the County, or the 431 Corporation in connection with the implementation of the Final Project
and Finance Plan.
"Qualified State Rebate Project" means the "Qualified Project" defined and described in the
Qualified State Rebate Project Master Development Agreement which is a qualified project
under Section 351.151 of the Texas Tax Code, as amended.
"Qualified State Rebate Project Master Develo ment A reement" means The Colony Hotel and
Convention Center Chapter 380 Agreement, by and between the City and LMG Ventures, LLC,
Page 7
1775.015\1058870.5
effective November 18, 2025, and approved by the City Council by Ordinance No. on
November 18, 2025, which is an agreement made pursuant to Texas Tax Code Section
311.010(b).
"Qualified State Rebate Pro'ect Subaccount" means the subaccount of the Tax Increment Fund
created by the City by Ordinance No. 2025-2631, adopted on November 18, 2025 into which the
City shall deposit State Tax Revenues (as defined in and required by the Qualified State Rebate
Project Master Development Agreement) and any other revenues to be used for the Qualified
State Rebate Project in accordance with the Qualified State Rebate Project Master Development
Agreement.
"Related Development" is defined in Section 1.3.
"Sales Tax Increment" means the amount generated from the City's sales and use taxes
attributable to the Zone above the sales tax base. "Sales tax base" means the amount generated
from the City's municipal sales and use taxes at the rate of one percent (1.0%) attributable to the
Zone for the year in which the Zone was designated.
"Tax Increment" means, for the City and the County, respectively, for each year, the amount of
property taxes levied and collected by the City and the County for that year on the captured
appraised value of real property taxable by the City and the County and located in the Zone.
"Captured appraised value" means the total taxable value of all real property taxable by the City
and the County and located in the Zone for that year less the tax increment base for the City and
County. "Tax increment base" for the City and County is the total taxable value of all real
property taxable by the City and the County and located in the Zone for the year in which the
Zone was designated.
"Tax Increment Fund" means the tax increment fund required by the Act, and any accounts held
therein (including those described on Exhibit A of this 2025 First Supplement), for the Zone
established by the City into which: (i) the City is required by the Act to deposit the City Tax
Increment and the City Sales Tax Increment, (ii) the County is required by the Act to deposit the
County Tax Increment; (iii) the City or the 431 Corporation deposits any proceeds from the
issuance of TIF Obligations; (iv) the City is required by the Qualified State Rebate Project
Master Development Agreement to deposit State Tax Revenues; and (v) the City, the County, or
the 431 Corporation is otherwise authorized by the Act to deposit any funds.
"TIF Obligations" are defined in Section 15 of the 2011 Final Project and Finance Plan.
"TIF Projects" are defined in Section 1.2.
"TIF Proiect Costs" are defined in Section 1.2.
"Zone" is defined in Section 1.3.
"Zone Creation Ordinance" is defined in Section 1.3.
Page 8
1775.015\1058870.5
3. SUPPLEMENTAL PROVISIONS
3.1 Additional Public Works Projects. In addition to the Public Works Projects
described in the 2011 Final Project and Finance Plan, including the exhibits thereto, the
Developer, Board and the City have determined that development of the Facility and Related
Development will require the construction of the additional Public Works Projects generally
described in Section 3.2 below.
3.2 Additional Public Works Project Costs. 'Public Works Project Costs" include the
Public Works Project Costs described in the 2011 Final Project and Finance Plan, including the
exhibits thereto, and the following costs related to the Additional Public Works Projects
described below:
Bridges -Estimated Construction Costs (both bridges) $2,200000
The Public Works Project Costs shown above are estimates in 2025 dollars and may be
adjusted, accelerated, delayed or abandoned without requiring an amendment to the Final Project
and Finance Plan. The estimated bridge construction costs (both bridges) will be confirmed by a
study expected to be completed in the Spring of 2026. After the study is completed, funds will
be allocated for such costs.
3.3 Estimated Time When TIF Project Costs Will Be Incurred. It is estimated that TIF
Project Costs will be incurred as shown in the 2011 Final Project and Finance Plan, including the
exhibits thereto, and as described below for the additional Public Works Projects described in
Section 3.2 above; however, the timing may vary significantly from the estimates. Expenditures
Page 9
1775.015\1058870.5
Estimated
Description:
Annual Costs:
Pedestrian Tunnel Repair
$50,000
Divergent Diamond Interchange (DDI) Repair
$110,000
Directional Signs
$90,000
Traffic Signal Repair
$30,000
Traffic Signal Equipment Replacement
$40,000
Concrete Pavement Lifting Repairs
$50,000
Concrete Curb Repair
$15,000
Concrete Panel Repair
$80,000
Roadway Sealing
$10,000
Roadway Re -Striping
$15,000
Wood and Metal Guardrail Repair
$3,000
Pump Repair North of Pedestrian Tunnel
$1,00
Estimated Annual Costs
$494,000
Bridges -Estimated Construction Costs (both bridges) $2,200000
The Public Works Project Costs shown above are estimates in 2025 dollars and may be
adjusted, accelerated, delayed or abandoned without requiring an amendment to the Final Project
and Finance Plan. The estimated bridge construction costs (both bridges) will be confirmed by a
study expected to be completed in the Spring of 2026. After the study is completed, funds will
be allocated for such costs.
3.3 Estimated Time When TIF Project Costs Will Be Incurred. It is estimated that TIF
Project Costs will be incurred as shown in the 2011 Final Project and Finance Plan, including the
exhibits thereto, and as described below for the additional Public Works Projects described in
Section 3.2 above; however, the timing may vary significantly from the estimates. Expenditures
Page 9
1775.015\1058870.5
may be accelerated or delayed without amending this Final Project and Finance Plan. The
expenditures are in current -year dollars; therefore, they shall be adjusted each year by a cost -of -
living index approved by the City and the Developer, which approvals shall not be unreasonably
withheld; and such adjustments shall not require an amendment to the Final Project and Finance
Plan.
2026
$500,000
2027
$500,000
2028
$500,000
2029
$500,000
2030
$500,000
3.4. Method of Financing. The TIF Projects, including the Additional Public Works
Projects described in Section 3.1 above, shall be financed as described in Section 15 of the 2011
Final Project and Finance Plan. Under the Zone Creation Ordinance, the City created and
established the Tax Increment Fund and several subaccounts within the Tax Increment Fund,
including specifically the Tax Increment Subaccount into which the City is required to deposit
the City Tax Increment and the County is required to deposit the County Tax Increment. The
City subsequently created the "City Tax Increment Subaccount", the "City Tax Increment (50 -
acre) Subaccount" and the "County Tax Increment Subaccount" within the Tax Increment
Subaccount of the Tax Increment Fund into which the funds on deposit in the Tax Increment
Subaccount are segregated in accordance with the 2021 Amended and Restated Management
Agreement. To finance the Additional Public Works Project Costs described in Section 3.2
above and to pay outstanding TIF Project Costs, the City, on behalf of the Board, shall make the
following transfers and payments in the following order of priority: (1) first the City shall
transfer up to $90,000 of City Tax Increment on deposit in the City Tax Increment Subaccount of
the Tax Increment Subaccount of the Tax Increment Fund to the City Tax Increment Subaccount
— Debt Service Reserve Fund so that such fund has no less than $90,000 on deposit at all times;
(2) second, the City shall transfer $500,000 of City Tax Increment on deposit in the City Tax
increment Subaccount of the Tax Increment Subaccount of the Tax Increment Fund to the City
Tax Increment Subaccount — Capital Project Annual Reserve Fund on October 1, 2025 and shall
transfer up to $500,000 on each October 1 thereafter, so that such fund contains $500,000 on
October 1 of each year; and (3) third, the City shall use any remaining City Tax Increment on
deposit in the City Tax Increment Subaccount of the Tax Increment Subaccount of the Tax
Increment Fund to pay outstanding TIF Project Costs. Funds on deposit in the City Tax
Increment Subaccount — Capital Project Annual Reserve Fund may only be used to pay the
Qualified Costs of the Public Works Projects described in Section 3.2. Any funds on deposit as
of September 30th each year shall be credited against the amount required to be transferred on
October 1 such that the total amount on deposit in the City Tax Increment Subaccount — Capital
Project Annual Reserve Fund on October 1 of each year shall equal no more than $500,000. The
City Tax Increment Subaccount — Capital Project Annual Reserve Fund shall be used for the sole
purpose of paying the Public Works Project Costs described in Section 3.2 above and for no
other purpose. Any amount on deposit in the City Tax Increment Subaccount — Capital Project
Annual Reserve Fund after all Public Works Project Costs described in Section 3.2 have been
paid shall be transferred back to the City Tax Increment Subaccount and used in accordance with
Page 10
1775.015\1058870.5
the Final Project and Finance Plan and related agreements.
3.5 Qualified State Rebate Project. As described above in Section 1.5, the City has
entered into the Qualified State Rebate Project Master Development Agreement for the purpose
of constructing the Qualified State Rebate Project under Subchapter C of Chapter 351 of the
Texas Tax Code, as amended. In the 2025 First Supplement Approval Ordinance, the City, on
behalf of the Board, established the Qualified State Rebate Project Subaccount of the Tax
Increment Fund into which the City shall deposit all State Tax Revenues (as defined in the
Qualified State Rebate Project Master Development Agreement) and any other revenues to be
used for the Qualified State Rebate Project in accordance with the Qualified State Rebate Project
Master Development Agreement as authorized by Section 311.014(a) of the Act and the
2025 First Supplement Approval Ordinance. Funds deposited in the Qualified State Rebate
Project Subaccount of the Tax Increment Fund shall be used to pay TIF Project Costs consisting
of Economic Development Programs described in the Qualified State Rebate Project Master
Development Agreement.
4. CHAPTER 252 and CHAPTER 272 EXEMPTIONS. The City acknowledges that
Texas Tax Code Section 311.010(g) provides that Chapter 252 of the Texas Local Government
Code does not apply to a dedication, pledge, or other use of revenue legally deposited in the TIF
Fund for a reinvestment zone under an agreement made pursuant to Texas Tax Code Section
311.010(b), and pursuant to Texas Local Government Code Section 272.001(b)(6), the public
notice and bidding requirements of Texas Local Government Code Section 272.001(a) do not
apply to the sale of the City's land that is located in a reinvestment zone designated as provided
by law and that the municipality desires to have developed under a project plan adopted by the
City for the zone. It is contemplated that the City will own improved and unimproved land
within the Zone which the City desires to have developed as part of the Facility, Related
Development, and Qualified State Rebate Project in accordance with this Final Project and
Finance Plan and the Qualified State Rebate Project Master Development Agreement. It is
further contemplated that development of City -owned land as part of the Facility, Related
Development, and Qualified State Rebate Project may include sales, grants, or other transfers as
part of an economic development program for the Zone authorized by Section 311.010(h) of the
Act. To the extent that any transfers of City -owned land are involved in such a program, such
transfers shall be exempt from the notice and bidding requirements of Chapter 272, Local
Government Code, based on the exemption contained in Section 272.001(b)(6), Local
Government Code.
5. 2011 FINAL PROJECT AND FINANCE PLAN RATIFIED AND CONFIRMED, In
Resolution No. T2025-003 approved by the Board on November 18, 2025, the Board approved
this 2025 First Supplement and expressly approved, ratified and confirmed the 2011 Final
Project and Finance Plan in its entirety. Similarly, the City Council adopted Ordinance No. 2025-
2631 on November 18, 2025, approving this 2025 First Supplement and expressly approved,
ratified and confirmed the 2011 Final Project and Finance Plan in its entirety. Nothing in this
First Supplement is intended to supersede the provisions of the 2011 Final Project and Finance
Plan. In the event of a conflict between this 2025 First Supplement and the 2011 Final Project
and Finance Plan, the 2011 Final Project and Finance Plan shall control.
Page 11
1775.015\1058870.5
0
Z
Z
5W
2
W
V
Z
w
X
a
H
41
0
yJ
E V
U O
x _
C
J
V
u l/7
11 IA C
0 C u
CJ
Ln
O
N
7 OR
v -
- lA
a
O
41
0
E V
�_
^'
u l/7
v T C O v
d IG M ` yy O
> 1A L m
X
N a
r �
T �
u
K N cd> Q
V R% M L 3 v,u G
x o V n Y y N
W
u >
v
R cu 7 V
r E ° _a z c
L ro R W
V C 'E C
V ¢