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HomeMy WebLinkAboutResolution No. 2011-090 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2011 - 090 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, MAKING CERTAIN LEGISLATIVE FINDINGS REGARDING REINVESTMENT ZONE NUMBER ONE, CITY OF THE COLONY, TEXAS; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, after a public hearing held on November 8, 2011, the City Council (the "City Council") of the City of The Colony, Texas (the "City"), approved Ordinance No. 2011- 1926, designating Reinvestment Zone Number One, City of The Colony, Texas (the "Zone") in accordance with and pursuant to Chapter 311 of the Texas Tax Code, as amended (the "TIF Act"); and WHEREAS, on November 15, 2011, the City Council and the board of directors for the Zone (the "Zone Board") approved the Final Project and Reinvestment Zone Financing Plan for the Zone (the "Final Project and Finance Plan"); and WHEREAS, the Final Project and Finance Plan provides that tax increment financing under the TIF Act is an economic development tool that may be used to pay for: (i) public works within and outside the Zone; (ii) public improvements within and outside the Zone; (iii) programs for the public purpose of economic development within the Zone to facilitate and/or pay for projects that benefit the Zone, develop and diversify the economy of the Zone, and stimulate business and commercial activity within the Zone; including, but not limited to, programs under Chapter 380, Texas Local Government Code, as amended; (iv) other projects that benefit the 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"); and WHEREAS, Section 311.015 of the TIF Act authorizes the issuance of bonds, payable as to both principal and interest from the tax increment fund in accordance with the TIF Act, and authorizes the use of the proceeds from such bonds for the payment of "project costs" which are defined by Section 311.002 of the TIF Act; and WHEREAS, Section 311.002(1)(L) of the TIF Act, defines "project costs" to mean "expenditures made or estimated to be made and monetary obligations incurred or estimated to be incurred" by the City that are listed in the Final Project and Finance Plan as "costs of public works, public improvements, programs, or other projects benefitting the [Z]one, plus other costs incidental to those expenditures and obligations" including, but not limited to, payments made at the discretion of the City Council that the City Council finds "necessary or convenient to the implementation of the project plans for the [Z]one"; and WHEREAS, on November 15, 2011, the City Council adopted Ordinance No. 2011- 1933 authorizing and approving the establishment and administration of any or all of the Economic Development Programs defined and described in the Final Project and Finance Plan for the public purposes of developing and diversifying the economy of the Zone and developing business and commercial activity within the Zone; and, the City Council found and deterinined that such Economic Development Programs are necessary and convenient to implement and achieve the purposes of the Final Project and Finance Plan; and WHEREAS, such Economic Development Programs include programs to make grants, to the extent permitted by law, of certain TIF Projects and grants of any lawfully available money from the Tax Increment Fund, as defined in the Final Project and Finance Plan; and WHEREAS, the City intends to transfer certain TIF Projects to either the Developer, as defined in the Final Project and Finance Plan, or to one or more end users of such projects (the "End Users"), either through one of the Economic Development Programs or by sale, which sale may be for less than fair market value; and the City and the Zone Board intend to enter into certain transfer agreements (the "Private Trani fer Agreements") to accomplish such transfers; and WHEREAS, Section 311.008(b) of the TIF Act authorizes the City to exercise any power necessary or convenient to carry out the TIF Act, including specifically the power to "acquire real property by purchase, condemnation, or other means to implement project plans and sell that property on the terms and conditions and in the manner it considers advisable" and to "enter into agreements that [the City Council] determines to be necessary or convenient to implement project plans and achieve their purposes"; and WHEREAS, the City Council hereby finds and determines that the adoption of this Resolution is in the best interests of the citizens of the City. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: SECTION 1. The findings set forth above are incorporated into the body of this Resolution as if fully set forth herein. SECTION 2. All capitalized terms used in this Resolution, including those used in the preamble above, that are not otherwise defined shall have the meanings given to them in Section 2 of the Final Project and Finance Plan. SECTION 3. The City Council hereby finds and determines that the TIF Projects and the TIF Project Costs in the Final Project and Finance Plan, which specifically include: • Public Works Projects consisting of. (1) site improvements including, but not limited to, grading related to Public Works Projects; (ii) public infrastructure inside and outside the Zone (e.g., water, sewer, roads, and utilities); (iii) storm water retention, detention and related drainage improvements within the Zone; (iv) municipal buildings within the Zone; (v) public parking facilities within the Zone, and (vi) the acquisition of land for the foregoing; and • Economic Development Projects consisting of (i) Public Works Projects not otherwise financed by the Tax Increment Bonds; (ii) site improvements including, but not limited to, grading within the Zone, (iii) the acquisition of all land within the Zone that is not otherwise acquired in connection with the Public Works 95334793.2/11108553 -2- Projects, the Type A Projects, or the Type B Projects; (iv) projects that will be used as the retail portion of the Facility; (v) projects that will bring to the Zone entertainment, tourism, recreation, and convention facilities that will attract tourists, visitors, and shoppers from a wide geographic region; (vi) projects that will bring to the Zone additional retail and commercial facilities; (vii) projects that will bring to the Zone a second "super retail store"; and, (viii) public parking facilities within the Zone; and/or • Economic Development Programs consisting of (i) programs to make grants of land, buildings, parking and Economic Development Projects in the Zone, and (ii) programs to make grants of any lawfully available money from the Tax Increment Fund to pay TIF Project Costs, all of which programs are for activities that benefit the Zone and stimulate business and commercial activity in the Zone, are necessary and convenient for the successful implementation of the Final Project and Finance Plan. SECTION 4. The City Council hereby finds and determines that the Public Works Projects, the Economic Development Projects, and/or the Economic Development Programs described above in Section 3 of this Resolution are each integral components of the comprehensive plan for the development of the Zone and the success of the City's efforts in developing the Zone depends on the ability to develop, construct, finance and convey such Public Works Projects and Economic Development Projects, and to administer and finance such Economic Development Programs, all as described in the Final Project and Finance Plan. The City Council further finds and determines that financing such Public Works Projects, Economic Development Projects, and Economic Development Programs are "project costs" under Section 311.002 the TIF Act, and such "project costs" may be financed with bond proceeds under the TIF Act. The City Council further finds that the financing of such Public Works Projects, Economic Development Projects, and Economic Development Programs in the mariner described in the Final Project and Finance Plan constitute payments that are both necessary and convenient to the implementation of the Final Project and Finance Plan. SECTION 5. The City Council hereby finds and determines that it will be necessary in the future to enter into certain Private Transfer Agreements with the Developer and/or End Users to accomplish transfers of certain TIF Projects as contemplated by the Final Project and Finance Plan and that such Private Transfer Agreements are necessary to implement and achieve the purposes of the Final Project and Finance Plan. SECTION 6. If any section, article paragraph, sentence, clause, phrase or word in this Resolution, or application thereto to any persons or circumstances, is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Resolution; and the City Council hereby declare it would have passed such remaining portions of this Resolution despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 7. This Resolution shall become effective immediately upon passage. 95334793.3/11108583 - 3 - I I PASSED AND APPROVED BY CITY COUNCIL OF THE COLONY, TEXAS, THIS THE 6th DAY OF DECEMBER, 2011. J e McCo ry, Mayor ATTES Fluristie Wilson, City Secretary (SEAL) APPROVED AS TO FORM: J { Jeff Moore; City Attorney 95334793.2/11108583 S- 1 -