BACKGROUND

The Station is Sachse's signature mixed-use development located between Miles Road and Merritt Road and the President George Bush Turnpike. It includes 100+ acres of residential, retail, restaurants, and two parks: the new Commons Park and the City's largest open space, Heritage Park. Currently, Heritage Park is in the process of being reconstructed and is receiving a multi-million dollar enhancement as a part of the development.

The Station was created with a Public Improvement District (PID)and Tax Increment Reinvestment Zone (TIRZ #2) overlay as a way to capture the value that was anticipated to be created with the development. PIDs are an important economic development catalyst tools for cities to use to activate raw land and TIRZs are an important reinvestment tool for cities to send value back to a designated area. At its inception, the Station was originally valued at $250 million, however, that value has since doubled to $500 million in recent years. In doing so, the value of TIRZ #2 has also increased considerably.

The purpose of the TIF Reimbursement Agreement is to reimburse the developer for certain items that were constructed to enhance the Station using monies generated by the additional value created from the zone. The reimbursements are for specific improvements that are outlined within the exhibits of the agreement, that were previously negotiated between the City and the developer and are authorized improvements under Chapter 311 of the Tax Code.

This action was originally contemplated in the original Development Agreement between the City of Sachse and PMB Station Developer, LLC that was approved and executed in 2018. Now that certain items have been constructed, it is necessary to finalize the TIF Reimbursement Agreement.

This item was presented to the TIRZ #2 Board at its meeting on December 4, 2023. The TIRZ #2 Board is a recommending body, and the City Council is the approval body.

Kirk McDaniel with P3 Works, the City's Public Improvement District and Tax Increment Reinvestment Zone administrators, will be in attendance to answer any questions that the TIRZ #2 Board may have.

POLICY CONSIDERATIONS

The TIRZ #2 Board is the recommending body, while the City Council is the approval body. Please note, the terms Tax Increment Financing (TIF) and Tax Increment Reinvestment Zone (TIRZ) are the same and the terms are often used interchangeably.

RECOMMENDATION

Recommend approval of and authorize the City Manager to execute a TIF Zone Number Two Economic Development Incentive and Infrastructure Reimbursement Agreement among the City of Sachse, the TIRZ #2 Board, and the PMB Station Developer, LLC.; and any amendments or instruments related thereto.