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HomeMy WebLinkAboutResolution No. 2025-149CITY OF THE COLONY, TEXAS RESOLUTION NO. 2025- A A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AMENDING RESOLUTION 2025-139 AUTHORIZING AND APPROVING CERTAIN PAYMENTS BY THE COLONY LOCAL DEVELOPMENT CORPORATION, THE COLONY ECONOMIC DEVELOPMENT CORPORATION, AND THE COLONY COMMUNITY DEVELOPMENT CORPORATION FOR COSTS RELATED TO THE CONSTRUCTION OF PROJECTS WITHIN TAX INCREMENT REINVESTMENT ZONE NO. 1, CITY OF THE COLONY, TEXAS FOR GRANDSCAPE; PROVIDING FOR AN EFFECTIVE DATE; AND RESOLVING OTHER MATTERS RELATED THERETO. WHEREAS, on December 2, 2025, the City Council approved Resolution No 2025-139 approving and authorizing: (1) certain payments relating to the Grandscape project from the Tax Increment Fund for Tax Increment Reinvestment Zone No. 1, City of the Colony, Texas (the "Zone"), as authorized by the board of directors of the Zone (the "Zone Board") and The Colony Local Development Corporation (the "LDC"), and (2) certain payments relating to the Grandscape project by The Colony Economic Development Corporation (the "TypeA Corporation") and The Colony Community Development Corporation (the "Type B Corporation"); and, WHEREAS, the payments authorized by the Type A Corporation and the Type B Corporation, as approved by the City Council in Resolution 2025-139, have been processed and completed as described in Resolution 2025-139; and WHEREAS, the Zone Board and the LDC have found and determined, and the City Council found and determined in Resolution 2025-139, that NFM Advances and payments to LMG and TXFM for Private Funding Obligations (as defined in the LDC Funding Agreement) authorized to be paid hereunder are "project costs" as that term is defined in Section 311.002 of the Texas Tax Code and are TIF Project Costs provided for in the Final Project and Finance Plan; and WHEREAS, the Zone Board and the LDC have found and determined, and the City Council found and determined in Resolution 2025-139, that it is necessary for the implementation of the Final Project and Finance Plan to direct the LDC to: (1) maintain a debt service reserve fund (the "City Tax Increment Subaccount - Debt Service Reserve Fund") within the City Tax Increment Subaccount of the Tax Increment Fund that shall contain $90,000 at all times as described in Section 3.4 of the First Supplement; (2) fund an annual capital project reserve fund within the City Tax Increment Subaccount of the Tax Increment Fund (the "City Tax Increment Subaccount — Capital Project Annual Reserve Fund") to provide for the maintenance and repair of TIF Projects within the Zone as described in Section 3.4 of the First Supplement; (3) make payments from the City Tax Increment Subaccount and County Tax Increment Subaccount of the Tax Increment Fund related to TIF Project Costs, including but not limited to certain reimbursable NFM Advances and payments to LMG and TXFM for a portion of outstanding Private Funding Obligations; and (4) authorize the City Manager of the City, or the City Manager's designee, to approve payments of such TIF Project Costs as described below; and 1775.015\1072663.1 WHEREAS, following the City Council's approval of Resolution 2025-139 on December 2, 2025, the City discovered an error related to the payment to be made from the City Tax Increment Subaccount and County Tax Increment Subaccount of the Tax Increment Fund related to TIF Project Costs, including but not limited to certain reimbursable NFM Advances and payments to LMG and TXFM for a portion of outstanding Private Funding Obligations; and WHEREAS, the Zone Board and the LDC have submitted corrected authorizations reflecting the correct amount to be paid from the City Tax Increment Subaccount and County Tax Increment Subaccount of the Tax Increment Fund related to TIF Project Costs, including but not limited to certain reimbursable NFM Advances and payments to LMG and TXFM for a portion of outstanding Private Funding Obligations; and WHEREAS, the City Council wishes to amend Resolution No. 2025-139 by replacing Exhibit B-1 and Exhibit B-2 in their entirety to reflect the corrected amounts to be paid from the City Tax Increment Subaccount and County Tax Increment Subaccount of the Tax Increment Fund as authorized by the Zone Board and the LDC. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: SECTION 1. The findings set forth above and the exhibits attached hereto are incorporated into the body of this Resolution as if fully set forth herein. SECTION 2. Capitalized terms not otherwise defined in this Resolution shall the meanings assigned to them in Resolution 2025-139 approved by the City Council on December 2, 2025. SECTION 3. The Zone Board and the LDC have approved the respective forms attached as Exhibit B-1 and Exhibit B-2 (such exhibits are referred to collectively as the "Annual Authorization Forms") and have approved, subject to the approval of the City Council, the payments shown on such forms from the Tax Increment Fund. SECTION 4. The City Council hereby authorizes and approves the amendment of Resolution 2025-139 to replace Exhibit B-1 and Exhibit B-2 in their entirety and authorizes the payments from the Tax Increment Fund as shown on the Annual Authorization Forms. SECTION 5. The City Council hereby authorizes, approves, and ratifies all prior actions taken under Resolution 2025-139 and each and every section of Resolution 2025-139, including the Exhibits thereto other than Exhibit B-1 and Exhibit B-2 which are hereby replaced in their entirety. SECTION 6. For so long as obligations remain unpaid and outstanding, the Zone Board, the LDC, the EDC and the CDC shall submit forms similar to the Annual Authorization Forms that have been approved by the Zone Board, the LDC, the EDC, and the CDC to the City Council. Following the receipt of such forms, the City Council shall review and consider approval of the payments set forth in such forms without further action required from the Zone Board, the LDC, the EDC or the CDC. SECTION 7. This Resolution shall become effective immediately upon passage. 2 1775.015\1072663.1 PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS THE 16TH DAY OF DECEMBER 2025. ATTEST: G Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: THE CITY OF THE COLONY, TEXAS Richard Boyer, Mayor'- City ayorCity of The Colony, Texas 1775.015\1072663 1 Exhibit B-1 Zone Board Authorization Form 1775.015\1072663.1 AUTHORIZATION OF ANNUAL PAYMENT FROM THE CITY TAX INCREMENT SUBACCOUNT AND COUNTY TAX INCREMENT SUBACCOUNT OF THE TAX INCREMENT FUND FOR TAX INCREMENT REINVESTMENT ZONE NO. 1 CITY OF THE COLONY, TEXAS 1. As of September 30, 2025, the amount on deposit in the City Tax Increment Subaccount of the Tax Increment Fund was $2,280,838.31 and the amount on deposit in the County Tax Increment Subaccount of the Tax Increment Fund was $470,217.07. 2. Subject to the approval of the City Council of the City, the Board of Directors of Tax Increment Reinvestment Zone No. I hereby approves the following payments from the City Tax Increment Subaccount and County Tax Increment Subaccount of the Tax Increment Fund in the following order of priority: (a) FIRST, the amount of NINETY THOUSAD AND 00/100 DOLLARS ($90,000.00) to the "City Tax Increment Subaccount - Debt Service Reserve Fund" such that no less than $90,000.00 shall be retained in such City Tax Increment - Subaccount Debt Service Reserve Fund of the City Tax Increment Subaccount of the Tax Increment Fund at all times in accordance with Section 3.4 of that certain First Supplement to Final Project and Reinvestment Zone Financing Plan for Tax Increment Reinvestment Zone Number One, City of Th Colony, Texas, dated November 5, 2025 (the "First Supplement"); and (b) SECOND, the amount of FIVE HUNDRED THOUSAND AND 00/100 DOLLARS ($500,000.00) to the "City Tax Increment Subaccount - Capital Project Annual Reserve Fund" in accordance with Section 3.4 of the First Supplement; and (c) THIRD, the amount of TWO MILLION ONE HUNDRED SIXTY-ONE THOUSAND FIFTY-FIVE AND 38/100 DOLLARS ($2,161,055.38) to NFM Services, LLC, a Texas limited liability company ("NFM Services") for reimbursement of TIF Project Costs consisting of outstanding "NFMAdvances" as defined in, and in accordance with, that certain Amended and Restated Construction Management Agreement, effective as of November 20, 2012, between the City of The Colony, Texas, The Colony Local Development Corporation, and NFM Services. EXECUTED THIS 8TH DAY OF DECEMBER, 2025. TAX INCREMENT REINVESTMENT ZONE NO. 1, CITY OF T COLONY, TEXAS Tim Miller, Assistant City Manager as the City Manager's Designee 1775.015\1068013,2 Exhibit B-2 LDC Authorization Form 1775.015\1072663.1 AUTHORIZATION OF ANNUAL PAYMENT FROM THE CITY TAX INCREMENT SUBACCOUNT AND COUNTY TAX INCREMENT SUBACCOUNT OF THE TAX INCREMENT FUND FOR TAX INCREMENT REINVESTMENT ZONE NO.1 CITY OF THE COLONY, TEXAS 1. As of September 30, 2025, the amount on deposit in the City Tax Increment Subaccount of the Tax Increment Fund was $2,280,838.31 and the amount on deposit in the County Tax Increment Subaccount of the Tax Increment Fund was $470,217.07. 2. Subject to the approval of the City Council of the City, The Colony Local Development Corporation ("LDC') hereby approves the following payments from the City Tax Increment Subaccount and County Tax Increment Subaccount of the Tax Increment Fund in the following order of priority: (a) FIRST, the amount of NINETY THOUSAD AND 00/100 DOLLARS ($90,000.00) to the "City Tax Increment Subaccount - Debt Service Reserve Fund' such that no less than $90,000.00 shall be retained in such City Tax Increment - Subaccount Debt Service Reserve Fund of the City Tax Increment Subaccount of the Tax Increment Fund at all times in accordance with Section 3.4 of that certain First Supplement to Final Project and Reinvestment Zone Financing Plan for Tax Increment Reinvestment Zone Number One, City of Th Colony, Texas, dated November 5, 2025 (the "First Supplement"); and (b) SECOND, the amount of FIVE HUNDRED THOUSAND AND 00/100 DOLLARS ($500,000.00) to the "City Tax Increment Subaccount - Capital Project Annual Reserve Fund" in accordance with Section 3.4 of the First Supplement; and (c) THIRD, the amount of TWO MILLION ONE HUNDRED SIXTY-ONE THOUSAND FIFTY-FIVE AND 38/100 DOLLARS ($2,161,055.38) to NFM Services, LLC, a Texas limited liability company ("NFM Services") for reimbursement of TIF Project Costs consisting of outstanding "NFMAdvances" as defined in, and in accordance with, that certain Amended and Restated Construction Management Agreement, effective as of November 20, 2012, between the City of The Colony, Texas, The Colony Local Development Corporation, and NFM Services. EXECUTED THIS 8TH DAY OF DECEMBER, 2025. THE COLONY LOCAL DEVELOPMENT CORPORATION Tim Miller, Assistant City Manager as the City Manager's Designee 1775.015\1068081.2