Sep 30, 2024 Tax Increment Financing Reinvestment Zone #1 Board

RIGHT ON THE MONEY. RIGHT ON THE MONEY.

[00:00:02]

[1. Call to Order: The Tax Increment Financing Reinvestment Zone #1 Board of the City of Sachse will hold a regular meeting on Monday, September 30, 2024, at 6:30 PM to consider the following items of business:]

ONE BOARD FOR THE CITY OF SACHSE WILL HOLD A REGULAR MEETING ON MONDAY, SEPTEMBER THE 30TH, 2024 AT 6:30 P.M.

TO CONSIDER THE FOLLOWING ITEMS OF INTEREST.

SO I'D LIKE TO CALL THE MEETING TO ORDER.

AND I HAVE ASKED OUR FORMER MAYOR AND THE GUY THAT'S IN THIS POSITION FOR, I THINK, 62 YEARS TO LEAD US IN THE PRAYER AND THEN MISTER ED WILL LEAD US INTO TWO PLEDGES, IF YOU DON'T MIND STANDING.

LORD, THANK YOU FOR THIS DAY, LORD, AND ALL THE BLESSINGS THAT WE SHARE.

LORD, THANK YOU FOR THE TIME THAT WE CAN GET TOGETHER AND MAKE DECISIONS FOR THE CITY OF SACHSE.

AND LORD, PLEASE BE WITH US IN OUR TRAVELS OR WITH OUR FAMILIES ANY TIME THAT WE'RE WITH OUR FAMILIES.

LORD, PLEASE BE PUT YOUR HEDGE AND YOUR ARMS COMPLETELY AROUND US.

AND LORD, THANK YOU AGAIN FOR EVERYTHING THAT YOU DO FOR US.

AMEN. AMEN.

AMEN.

THANK YOU VERY MUCH. MAY BE SEATED.

THE PUBLIC IS INVITED TO ADDRESS THE BOARD WITH ANY PUBLIC.

I THINK WE'LL MOVE ON TO ITEM NUMBER FOUR.

[4. Consider approving the September 28, 2023, meeting minutes.]

WOULD YOU PLEASE READ THROUGH THE WHOLE THING? OH. I'M SORRY. OKAY.

I'M SORRY. THE PUBLIC IS INVITED TO ADDRESS THE BOARD REGARDING ANY TOPIC NOT ALREADY ON THE AGENDA.

THE TIME LIMIT IS THREE MINUTES PER SPEAKER.

A PUBLIC COMMENT CARD SHOULD BE PRESENTED TO THE ACTING SECRETARY PRIOR TO THE MEETING.

ACCORDING TO THE TEXAS OPEN MEETINGS ACT, THE BOARD IS PROHIBITED FROM DISCUSSING ANY ITEM NOT POSTED ON THE AGENDA, BUT WILL TAKE COMMENTS UNDER ADVISEMENT.

OKAY, WE DON'T NEED TO VOTE ON THAT.

OKAY. ALL RIGHT.

MOVING TO ITEM NUMBER FOUR.

CONSIDER APPROVING THE SEPTEMBER 28, 23 MEETING MINUTES AND THE MINUTES ARE INCLUDED.

MR. CHAIRMAN, I MAKE A MOTION THAT WE APPROVE THE SEPTEMBER 28TH, 2023 MEETING MINUTES.

OKAY. I HAVE A MOTION BY MR. BROWN THAT WE ACCEPT THE MINUTES AS PRESENTED.

DO I HEAR A SECOND? A SECOND? OKAY, I HAVE A SECOND.

AS I TOLD YOU, I'M TERRIBLE WITH NAMES.

KENDRA. KENDRA. ALL RIGHT.

THANK YOU VERY MUCH.

OKAY. THE MOTION PASSES.

LET'S SEE. ALL IN AGREEMENT.

RAISE YOUR HAND, PLEASE.

ANY OPPOSED? NONE OPPOSED.

THE MOTION PASSES UNANIMOUSLY.

MOVING TO NUMBER FIVE, CONSIDER ACCEPTING.

I'M SORRY, MA'AM. GIVE ME A SECOND, PLEASE.

OKAY. GOT IT.

OKAY. OH, NO.

THANKS. ITEM NUMBER FIVE ON THE AGENDA, CONSIDER ACCEPTING THE CITY OF SACHSE INVESTMENT POLICY FOR FISCAL

[5. Consider accepting the City of Sachse Investment Policy for FY 2023-2024, as adopted by the City Council on December 4, 2023.]

AND I WOULD ASSUME YOU HAVE THAT.

YES. OKAY.

CHAIR TILLMAN, DAVID BALDWIN, FINANCE DIRECTOR, CITY OF SACHSE AND STAFF LIAISON TO THE TIP ONE BOARD.

THE PUBLIC FUNDS AND INVESTMENT ACT NO, THE PUBLIC FUNDS INVESTMENT ACT, OR PIA, REQUIRES THAT INVESTMENT POLICY BE REVIEWED ANNUALLY BY THE CITY COUNCIL AND THE BOARD OF ALL OF THE COMPONENT UNITS.

THE CITY'S CURRENT INVESTMENT POLICY WAS REVIEWED BY CITY COUNCIL ON DECEMBER 4TH, 2023, AND PASSED.

THE INVESTMENT POLICY THAT WAS APPROVED BY COUNCIL INCLUDED TWO CHANGES.

THE FIRST OF THOSE TWO CHANGES WAS ADDING A REFERENCE TO THE PUBLIC FUNDS COLLATERAL ACT IN THE OPENING SECTION, REFERENCING CHAPTER 2257 OF THE TEXAS GOVERNING GOVERNMENT CODE.

THE SECOND WAS JUST A TECHNICAL ADJUSTMENT IN THE SECTION TWO OF THE SCOPE.

IT REFERENCED THE WATER AND SEWER ENTERPRISE FUND, AND THAT WAS UPDATED TO THE UTILITY FUND.

THOSE ARE THE TWO CHANGES.

OTHERWISE, THE INVESTMENT POLICY IS THE SAME AS IT WAS THE YEAR PRIOR.

AND SO STAFF RECOMMENDS THAT THAT THE BOARD ACCEPT THE CITY OF SACHSE INVESTMENT POLICY FOR FISCAL YEAR 22-23, AS ADOPTED BY THE CITY COUNCIL ON

[00:05:07]

OKAY. DO WE HAVE ANY QUESTIONS OR COMMENTS ABOUT THIS REPORT? OKAY. IF NOT, I ENTERTAIN A MOTION.

MR. CHAIRMAN, I'LL MAKE A MOTION THAT WE ACCEPT THE CITY OF SACHSE INVESTMENT POLICY FOR FISCAL YEAR 2023-2024, AS ADOPTED BY THE CITY COUNCIL ON DECEMBER 4TH, 2023.

ALL RIGHT. WE HAVE A MOTION ON MR. BROWN TO ACCEPT THIS.

DO I? DO I HEAR A SECOND? SECOND. OKAY.

I ALL IN FAVOR OF ACCEPTING THIS MOTION AS READ, WOULD YOU RAISE YOUR HAND? ANY OPPOSED? OKAY.

THE MOTION PASSES UNANIMOUSLY.

AND. YES.

THAT WAS MR. WOODCOCK.

WAS IT GREG, THAT YOU SAID THAT? FRANKS. OH, OKAY.

I DIDN'T SEE YOU. OKAY.

WE'RE GOOD. ALL RIGHT.

MOVING TO ITEM NUMBER SEVEN.

SIX. I'M SIX. I'M SORRY.

[6. Consider accepting the Quarterly Investment Reports for the quarter ending September 30, 2023, of the 2022-2023 fiscal year and quarters ending December 31, 2023, March 31, 2024, and June 30, 2024, of the 2023-2024 fiscal year.]

YEAH. AS A MATTER OF POLICY, TEXAS GOVERNMENT CODE, CHAPTER 2256.023 OF THE PUBLIC FUNDS INVESTMENT ACT, REQUIRES AN INVESTMENT OFFICER PREPARE AND SUBMIT A WRITTEN REPORT OF THE INVESTMENT TRANSACTIONS.

THE FINANCE DEPARTMENT PROVIDES A QUARTERLY REPORT TO PROVIDE AN OVERVIEW OF INVESTMENT ACTIVITY.

ALL OF THESE FOUR QUARTERLY REPORTS ARE ATTACHED TO THIS AGENDA ITEM WERE APPROVED BY COUNCIL.

OF NOTE FOR THIS SPECIFIC BOARD IN THE FOURTH QUARTER OF 2023, THE BALANCE FOR THE TIF ONE FUND WAS $11,015 THE FOLLOWING QUARTER.

IN FIRST QUARTER 2024, THE BALANCE WAS $10,015.

THE FOLLOWING QUARTER, IN SECOND QUARTER 2024, THE BALANCE WAS $10,284.

AND THEN IN THE FOURTH QUARTER, OR I'M SORRY, THE THIRD QUARTER OF 2024, THE FUND MADE ITS FINAL PAYMENT TO THE ECONOMIC DEVELOPMENT CORPORATION FOR FUNDS LENT TO THE TIF BOARD FOR A SEWER PROJECT, AND SO AFTER THAT PAYMENT WAS MADE, FUNDS DID REMAIN AS OF THE END OF THAT QUARTER.

AND SO THE BALANCE INCREASED TO $190,396.

NOW THAT THE DEBTS WERE PAID OFF BY THIS FUND, THE COSTS INCLUDE INVOICES PAID TO OUR P3, OUR ADMINISTRATOR OF THE TIF ONE OF THE TIRZ BOARD AND IT WILL NOW BE COLLECTING PROPERTY TAX REVENUES AND THAT FUND BALANCE WILL BE INCREASING BARRING ANY OTHER ANY OTHER PLANS OR EXPENSES.

SO THERE'S NOTHING ELSE COMING OUT OF THE FUND RIGHT NOW BESIDES WHAT YOU MENTIONED.

WITH THE ADMINISTRATIVE FEES, IT'S GOING TO EARN PROPERTY TAX, IT'S GOING TO EARN INTEREST.

AND RIGHT NOW IT'S GOING TO PAY INVOICES AT THIS TIME.

THAT'S IT. THOSE ARE THE THINGS.

EVERYTHING'S PAID OFF.

I REMEMBER WHEN WE HAD THAT.

THAT WAS FOR, LIKE SEWER AND WATER OR SOMETHING OUT THERE.

THE INFRASTRUCTURE FOR THE STATION IN THAT AREA.

CORRECT. THE INFRASTRUCTURE FRONT LOADED OR PAID BY THE UTILITY FUND AND THE ECONOMIC DEVELOPMENT CORPORATION TO FRONT LOAD THAT ACTIVITY THAT THOSE WERE PAID OFF.

SO, ONE OF THE DEBTS WAS PAID OFF IN FISCAL YEAR 22-23.

AND THE OTHER ONE WAS JUST PAID OFF IN APRIL OF THIS YEAR, FISCAL YEAR 23-24.

SO IN ONE QUARTER, THE REMAINING ALMOST $100,000 WAS ACCUMULATED.

IS THAT ABOUT RIGHT? CORRECT.

$180,000 INCREASE OVER THE LAST QUARTER.

SO HOW MUCH LONGER WILL THAT BE ACCUMULATING FUNDS? BECAUSE DOESN'T THIS TIF BOARD RUN OUT IN 25? IN 2028? 2028. WOW.

SO WHEN THOSE FUNDS ARE CONTINUOUSLY INCREASING, AREN'T THEY? WITH THE FUND, BALANCE WILL CONTINUE TO INCREASE, INCREASE BY INTEREST.

AND THEN THE ANNUAL PAYMENT OF OR EARNINGS OF PROPERTY TAX REVENUES.

OKAY. I KNOW IT'S TIME TO ASK YOU ABOUT WHAT ELSE IS PLAN FOR FUNDS TO BE USED FOR ON THE TIF?

[00:10:03]

OKAY. ALL RIGHT.

WELL, WE'VE HEARD THE REPORT.

LET'S SEE IF THERE'S ANY COMMENTS OR QUESTIONS ABOUT THAT.

I REMEMBER WHEN WE STARTED, HOW MUCH WAS THE FIRST THING WE HEARD AT $1,000? $100 WASN'T MUCH FOR THE FIRST YEAR.

THERE WAS 21 YEARS TO PAY OFF ALL THAT MONEY, BUT IT'S PAID OFF.

ALL RIGHT, ANY COMMENTS OR QUESTIONS ABOUT THIS? I ENTERTAIN A MOTION TO ACCEPT THIS REPORT.

DO I HEAR A MOTION.

MAKE A MOTION TO APPROVE ITEM A-6 AS PRESENTED.

OKAY, WE'LL HEAR A MOTION TO ACCEPT IT AS READ AND READ.

SECOND. SECOND THE MOTION, ALL RIGHT.

ALL IN FAVOR RAISE YOUR HAND, PLEASE.

ANY OPPOSED? MOTION PASSES UNANIMOUSLY.

I'LL GIVE YOU TIME TO GET IT ALL CALCULATED THERE.

DO WE NEED PAPER BALLOTS OR SOMETHING? NUMBER SEVEN.

[7. Consider acceptance of the Tax Increment Reinvestment Zone #1 (TIRZ #1) "PGBT Reinvestment Zone" Incremental Values and Annual Report for Tax Year 2023 (Fiscal Year 2023-2024)]

FISCAL YEAR 2023 2024.

DAVID. OKAY.

THE TAX INCREMENT REINVESTMENT ZONE, OR TIRZ ONE PGBT REINVESTMENT ZONE, WAS CREATED IN 2003.

THE ZONE WAS CREATED FOR A PERIOD OF 25 YEARS PER TAX CODE.

CHAPTER 311.

LOCAL GOVERNMENTS ARE REQUIRED TO SUBMIT ANNUAL REPORTS TO THE COMPTROLLER ON THE STATUS OF THE ZONE FOR THE DURATION OF THE TIRZ EXISTENCE.

THIS YEAR, THE FORM LOOKS A LITTLE DIFFERENT.

EFFECTIVE JANUARY 1ST OF 2024, THE COMPTROLLER REQUIRES TIRZ REPORTING DIRECTLY TO THE COMPTROLLER'S WEBSITE.

CHANGING THE FORMAT OF THE DISPLAYED REPORTS SO THE REPORT LOOKS A LITTLE DIFFERENT FROM BEFORE.

AS WAS MENTIONED BEFORE.

SO THE CURRENT STATUS OF THE OF THE THIS ZONE IS THAT WATER INFRASTRUCTURE FUNDS FOR WATER INFRASTRUCTURE WAS LENT BY THE UTILITY FUND.

IT WAS IN THE AMOUNT OF $1,150,934.

THAT WAS PAID OFF IN FISCAL YEAR 2223 AND THEN SEWER INFRASTRUCTURE WAS.

FUNDS FOR THAT WAS LENT BY THE ECONOMIC DEVELOPMENT CORPORATION IN THE AMOUNT OF $1,074,272, AND THAT WAS PAID OFF IN APRIL 2020 FOR FISCAL YEAR 2324.

SO THE FUND IS HEALTHY.

THE FUND HAS FULFILLED ITS REQUIREMENTS AND ITS DEBTS FROM THE EARLIER PLANNINGS OF THE OF THE FUNDS CREATION, AND IT'S GENERATING ECONOMIC ACTIVITY.

AND THAT'S THE SUBJECT OF ITEM NUMBER EIGHT.

OKAY. ANY COMMENTS OR QUESTIONS ON THIS REPORT? IT SAYS TIF FUND BALANCE -413,000.

IN THE MIDDLE OF WELL, AT THE BEGINNING OF THE ANNUAL REPORT, THE FIRST NUMBER, WHICH DOESN'T SEEM TO LINE UP WITH WHAT WE ALREADY TALKED ABOUT.

BRYAN CAN YOU HELP ME WITH THAT? ON MY FIRST PAGE, I WANT TO SAY THAT YES, CERTAINLY.

AS LONG AS THE BOARD HAD DEBTS, IT DID HAVE A NEGATIVE FUND BALANCE.

AND I THINK THE INFORMATION WE'RE SEEING HERE IS, IS CORRECT ME IF I'M WRONG, DAVID, IS THIS FISCAL YEAR 2022 OR 2023, EITHER OF WHICH THE BOARD DID HAVE DEBTS OUTSTANDING.

YEAH. IT'S MARK THIS.

I'M JUST LOOKING AT IT ON FACE VALUE.

IT'S MARKED AS REPORTING YEAR 2023.

SO YOU'RE SAYING THAT'S FISCAL YEAR 2022 REPORTED IN 2023.

IT WOULD SEEM A BIT OLD.

THIS DATA IS OLD BECAUSE WHEN WE REPORT TO THE COMPTROLLER, WE REPORT AS OF THE LAST COMPLETED FISCAL YEAR AND THE LAST COMPLETED FISCAL YEAR IS FISCAL YEAR 2023, EVEN THOUGH TODAY IS THE LAST DAY OF FISCAL YEAR 2024, THAT YEAR IS NOT YET COMPLETED, NOT YET AUDITED, AND THEREFORE WE HAVEN'T SUBMITTED THAT INFORMATION TO THE COMPTROLLER YET. SO WE ARE LOOKING AT DATA THAT'S OVER A YEAR OLD.

OKAY, THAT MAKES SENSE THEN.

YEAH, I SEE WHAT YOU'RE TALKING ABOUT.

THE -413 660.

SO BASED ON THE LAST PAGE, SUBDIVISION NAME, ALL THAT GOOD STUFF, IT SAYS VALUE ZERO, APPRAISED VALUE ZERO.

APPRAISED VALUE ZERO.

THE TIF PROPERTIES ARE NOT IN THIS PROPERTY.

[00:15:03]

CORRECT? ANYONE.

THEY DON'T, THE ZONES DON'T OWN THE PROPERTY, RIGHT? THEY OWN THE INCOME.

RIGHT. SO THEY DON'T OWN ANY PROPERTY UNLESS THEY BOUGHT IT, WHICH WOULD BE SILLY.

I DON'T REMEMBER THAT EVER HAPPENING.

SO I THINK THAT'S WHAT IT'S SAYING IS THIS IS ABOUT PROPERTY VALUES.

WE DON'T OWN ANY PROPERTY.

THE PROPERTY TAX REVENUE, OF COURSE, IS GENERATED FROM THE ASSESSED VALUE OF THE LAND IN THAT ZONE.

AND THE LAND VALUE HAS INCREASED YEAR OVER YEAR, WHICH IS WHY THE PROPERTY TAX REVENUE TO THE TIRZ HAS INCREASED YEAR OVER YEAR.

SO EVEN THIS, IF THIS REPORT IS ESSENTIALLY A YEAR OLD, ALMOST A YEAR OLD, UNFORTUNATELY, YES, THE APPRAISAL VALUE SHOULD NOT BE ZERO BECAUSE THERE'S BEEN STUFF BUILT ON THAT FOR MORE THAN ONE YEAR.

YES, AND I BELIEVE THERE IS A PORTION ON THIS REPORT THAT SHOWS THE AT LEAST THE ASSESSED VALUE IS SHOWN AS. SO, THE 93,295.000 WHERE ARE YOU SEEING THAT? YEAH I DON'T SEE THAT. I DON'T SEE THAT ON THIS REPORT.

UNDER THE BACKGROUND OF THE AGENDA ITEM, LET ME GO DOWN TO THE REPORT.

LEGISLATIVE DATA PAGE, MAYBE.

YEAH. THAT'S IT.

UNDER BACKGROUND.

RIGHT. THAT'S 3 MILLION.

OKAY. YEAH. THAT IS AN ACCURATE AMOUNT OF THE ASSESSED VALUE THAT GENERATED THE PROPERTY TAX REVENUE IN THAT YEAR.

SO MY QUESTION WOULD BE WHY ISN'T ANY OF THAT PORTION SHOWN ON THIS REPORT PROPERTY VALUES.

MAYBE I'M MISSING SOMETHING.

OR AM I MISSING SOMETHING? I'D HAVE TO REVISIT THE SUBMISSION TO THE COMPTROLLER'S OFFICE TO DETERMINE WHY IT IS ADDRESSED BY OUR ADMINISTRATOR.

SO. YEAH.

BECAUSE, LIKE BECAUSE, LIKE YOU SAID, WE HAVE TO BE GETTING THAT TAX REVENUE FROM SOME SOURCE, RIGHT? ABSOLUTELY. SO THAT SOME SOURCE HAS A VALUE.

RIGHT. BUT ON THIS REPORT, THERE IS NO VALUE.

I MEAN, I'D LOVE TO GET WHATEVER PERCENTAGE WE'RE GETTING, BUT NOT A PERCENTAGE OF ZERO, RIGHT? THE 93 MILLION IS CORRECT.

WHY? IT'S NOT ON THIS PARTICULAR REPORT SUBMITTED TO COMPTROLLER? I'M NOT SURE. AND I'D HAVE TO RESEARCH THAT.

OKAY. THANK YOU. SO THE 93,000,002 95 894, THAT'S HOW THAT'S WHAT THE TAX TAXABLE VALUE AS OF THAT OCTOBER 1ST, 23RD BECAUSE OF THE TIFF BOARD.

THE TIFF AREA IS THAT PROPERTY IN THAT TIFF AREA.

THAT'S CORRECT.

OKAY. AND ALL OF THAT THAT GENERATED 2,070,002 67 IN INCOME.

IS THAT KIND OF WHAT I'M SAYING? THE TOTAL ACCUMULATED TAX COLLECTIONS FOR ALL FOR ALL YEARS.

FOR ALL YEARS. NO. YEAH.

TECHNICALLY THAT AMOUNT GENERATED 601,000 IN THAT YEAR.

OKAY. LET'S SEE.

ANY OTHER COMMENTS OR QUESTIONS? OKAY. I'LL ENTERTAIN A MOTION THAT WE ACCEPT THIS REPORT.

ANYONE MAKE A MOTION TO APPROVE ITEM A7 AS PRESENTED.

OKAY. WE HAVE A MOTION TO ACCEPT THE REPORT.

SECONDED. AND SECOND, TO REPORT.

ALL IN FAVOR? RAISE YOUR HAND, PLEASE.

ANY OPPOSED? TWO OPPOSED.

OKAY. SECOND OPPOSED.

SO I GUESS THE MOTION STILL PASSES WITH THE TWO.

I DIDN'T VOTE, I DIDN'T, AND IF I HAVE TO VOTE, I'LL VOTE NO.

BUT THAT'S OKAY. YEAH, IT'S HARD TO KEEP UP WITH ALL THE HANDS.

NO, I UNDERSTAND. I UNDERSTAND.

YOU KNOW, I HAVE CONCERNS THAT THE NUMBERS DON'T APPEAR TO BE RIGHT, SO.

MAYBE THAT'S THE WAY THINGS GO, BUT I CAN'T SAY.

LET'S DO IT.

DO WE NEED TO DO ANYTHING ABOUT THAT SITUATION? NO. NO VOTE TO NO, I MEAN, A NO VOTING AT ALL IS REALLY A NO.

[00:20:01]

OKAY. WE'VE ALREADY VOTED, SO IT'S PASSED.

YEAH. IT PASSED EITHER WAY. IT DID PASS, BUT I'M JUST WONDERING IF THERE'S ANYTHING THAT AS A BOARD WE NEED THAT YOU'RE GOING TO FOLLOW UP.

OKAY. OKAY.

A LOT OF FIGURE NUMBER EIGHT.

[8. Receive an update on the 2024 activity in the Tax Increment Financing Investment Zone Number One.]

DAVID. OKAY.

SO NOW AS THE PRESENTATION ON ACTIVITY IN THE INCREMENT REINVESTMENT ZONE, NUMBER ONE, I'LL WALK THROUGH A HISTORY OF THE ZONE.

SOME OF THIS WILL BE REPETITIVE AS THE HISTORY HASN'T CHANGED AND THE EARLY DEVELOPMENT.

YES IT SHOULD BE UP THERE NOW.

ON THE EARLY DEVELOPMENT OF THE OF THE ZONE, WE'LL LOOK AT THE MAP AGAIN.

THE EXISTING DEVELOPMENT.

I'LL THEN WALK THROUGH CURRENT MAJOR DEVELOPMENT ACTIVITY.

JUST BECAUSE THAT AREA, YOU KNOW, WE TEND TO FOCUS ON THE DEVELOPMENT THAT WE DO HERE.

IT GETS A LITTLE UNCLEAR AS TO WHAT IS PART OF THE ZONE AND WHAT'S NOT.

SO I'LL ALSO IDENTIFY DEVELOPMENT ACTIVITY THAT'S NEARBY BUT NOT A PART OF THE ZONE.

AND THEN WE'LL SPEAK TO NEXT STEPS.

SO REGARDING THE HISTORY OF THE ZONE, AS WAS MENTIONED IN PREVIOUS AGENDA ITEMS, IT WAS ESTABLISHED IN 2003 FOR A 25 YEAR TERM, DUE TO END IN 2028.

THERE WAS AN AMENDMENT IN 2018 TO ALLOW FOR THE CREATION OF A TIRZ TWO, ANOTHER AMENDMENT IN 2020 TO REMOVE 14.933 ACRES TO BE ADDED INTO TIRZ TWO AND INTO THE PUBLIC IMPROVEMENT DISTRICT.

THE SACHSE ECONOMIC DEVELOPMENT CORPORATION, OR EDC, AND THE UTILITY FUND ADVANCE FUNDED WATER AND SEWER INFRASTRUCTURE.

TIRZ ONE THEN FULLY REIMBURSED THE UTILITY FUND IN 2223 AND THE SACHSE EDC IN FISCAL YEAR 2324.

SO HERE'S AN OVERVIEW LOOK OF TURN ONE EXISTING DEVELOPMENT ACTIVITY.

AND THEN I'LL GO THROUGH EACH OF THESE ITEMS INDIVIDUALLY.

EXISTING DEVELOPMENT IN TERM ONE IS 7-ELEVEN, LOCATED AT 2900 MILES ROAD.

IN ADDITION IS MEDICAL CITY, FORMERLY TRINITY REGIONAL HOSPITAL.

THERE WAS AN ICU BED UPGRADE COMPLETED IN MAY 2023.

AND THAT'S AT 4750 PRESIDENT GEORGE BUSH HIGHWAY.

MORE EXISTING DEVELOPMENT IS APPLIED ENERGY COMPANY LIGHT INDUSTRIAL OFFICE USE USED FOR FILTRATION, LUBRICATION AND FIRE SUPPRESSION DISTRIBUTION. IT'S THE COMPANY HEADQUARTERS LOCATED HERE AT 2650 MERRITT ROAD.

AND THEN THE LAST EXISTING OR NOT? THE LAST. THE SECOND TO LAST EXISTING DEVELOPMENT IS PUBLIC STORAGE.

PUBLIC STORAGE. BUILT 6300 SQUARE FOOT BUILDING WITH GROUND FLOOR RETAIL OPPORTUNITIES.

IT HAS 1300FT² OF OFFICE SPACE, 9000FT² OF RETAIL AND 116,000FT² OF STORAGE.

THE BUSINESS IS OPEN.

THE PROPERTY IS BEING ACTIVELY MARKETED FOR TENANTS, BUT NOTHING HAS COME FORWARD YET ON THAT.

AND THEN. MILES 190 APARTMENTS.

MILES 190 APARTMENTS HAS OPENED ALL FOUR PHASES OF THE 389 UNIT COMPLEX.

THE PROJECT IS LOCATED SOUTHWEST OF THE INTERSECTION OF MILES ROAD AND BUNKER HILL ROAD.

SO NOW MOVING ON TO MAJOR DEVELOPMENT ACTIVITIES OR DEVELOPMENT ACTIVITIES GOING ON NOW.

THEY INCLUDE SPECS, BUNKER HILL RETAIL AND ARIA.

FOR BUNKER HILL RETAIL.

IT'S THE FIRST PHASE OF BUNKER HILL RETAIL, LOCATED IMMEDIATELY NORTH OF MILES 190 APARTMENTS.

IT'S UNDER CONSTRUCTION AND WILL INCLUDE RETAIL, RESTAURANT AND OFFICE USES.

THE OVERALL PROJECT INCLUDES TWO BUILDINGS CONSISTING OF JUST UNDER 28,000FT².

THE FIRST PHASE IS CURRENTLY UNDER CONSTRUCTION, WITH AN ANTICIPATED RESTAURANT AND RETAIL USERS.

PHASE ONE BUILDING IS APPROXIMATELY 17,000FT².

PHASE TWO BUILDING IS ALMOST 11,000FT².

THE PHASE TWO BUILDING IS INTENDED TO START AFTER CONSTRUCTION IS COMPLETED FOR PHASE ONE, AND THIS PROJECT WILL HAVE CROSS ACCESS DRIVE TO

[00:25:04]

THEN THERE'S SPECS.

IT'S LOCATED AT THE SOUTHEAST CORNER OF MILES ROAD AND PGBT.

THE PROJECT CONSISTS OF ONE 15,000 SQUARE FOOT BUILDING.

CONSTRUCTION IS SET TO GET UNDERWAY WITHIN THE NEXT SEVERAL WEEKS.

PERMITS HAVE BEEN PULLED, FEES HAVE BEEN PAID AND THEN THE HIGHWAY 17 LOCATION OF SPECS IS APPROXIMATELY 15,000FT². AGAIN, THIS ONE IS PLANNED FOR, I'M SORRY, 11,000FT².

THIS ONE IS PLANNED FOR 4000 MORE SQUARE FEET.

SO JUST TO GIVE YOU AN IDEA OF SIZE.

AND THE ARIA IS ALSO EXISTING DEVELOPMENT.

THEY'RE IN THEIR FIRST PHASE OF THE ARIA.

IT INCLUDED 99 TOWNHOME UNITS.

THE SECOND PHASE, CONSISTING OF 101 TOWNHOME UNITS, IS UNDER CONSTRUCTION WITH 38 HOMES REMAINING.

FUTURE PHASES OF THE PROJECT WILL BE WILL INCLUDE A COMMERCIAL COMPONENT ALONG MERRITT ROAD AND PLEASANT VALLEY ROAD.

BRIGHTLAND HOMES AND ASHTON WOODS ARE THE BUILDERS OF THE TOWNHOMES.

SO ALSO IT HAS A 15,000 SQUARE FOOT OF RETAIL BUILDINGS THAT HAVE BEEN APPROVED BUT NO PERMITS PULLED.

CURRENTLY, THEY'RE TRYING TO LINE UP TENANTS.

THERE'S A GAS STATION.

SUP AMENDMENT THAT WAS APPROVED AT THE SEPTEMBER 16TH CITY COUNCIL MEETING AND WILL INCREASE BUILDING SQUARE FOOTAGE AND INCREASE THE PUMPS, NOTED. IT WAS NOTED THAT SONIC IS A POTENTIAL TENANT, BUT THAT IS STILL TO BE DETERMINED.

THERE'S ADDITIONAL SPACE FOR A PAD RESTAURANT AND TWO ADDITIONAL STRIP CENTERS, AND THE TOWNHOMES ARE NEARING COMPLETION.

THEY HAVE 38 OPEN PERMITS REMAINING.

TOWNHOMES ARE IN VARIOUS STAGES OF CONSTRUCTION.

ALL OF THIS INFORMATION PREPARED BY MATT ROBINSON AND GIVEN TO ME FOR THIS PRESENTATION.

AND SO THERE'S OTHER ACTIVITY ALSO GOING ON.

I DON'T HAVE INDIVIDUAL SLIDES FOR THOSE, BUT SINCE WE KIND OF SEE OR HEAR THINGS GOING ON, I'LL JUST POINT OUT THAT THESE ARE OUTSIDE OF THE TIRZ.

ONE AREA AND THAT'S CHIPOTLE AND STARBUCKS ON THE MAP HERE, THERE'S AN ARROW POINTING TO THAT LOCATION.

DILLA'S TRINITY, MLB THE OFFICE BUILDINGS THERE ARE OUTSIDE OF THIS TIRZ ONE AREA, THE SECOND 7-ELEVEN LOCATION ALONG PGT IS OUTSIDE OF THIS AREA, AS WELL AS STATION RETAIL PHASE TWO, WHICH IS CANE ROSSO AND NATIONS BURGERS.

IN ADDITION, EVOLVE BIOLOGICS AND SL SIX STONE LAKE.

WHAT'S HAPPENING WITH EVOLVE? WHAT'S HAPPENING WITH EVOLVE? KIND OF. SO CURRENTLY IT'S ON HOLD.

THEY HOPE TO GET MOVING AGAIN IN THE NEXT SEVERAL MONTHS.

I'LL KIND OF WALK THROUGH THOSE.

SO CHIPOTLE AND STARBUCKS ARE CURRENTLY UNDER CONSTRUCTION.

THE REMAINING VACANT TRACT NORTH OF THEIR PROPERTY RIGHT NOW.

THERE'S NO PLANS FOR DEVELOPMENT AT THIS TIME.

ANTICIPATED COMPLETION IS IN THE SPRING OR SUMMER OF 2025.

FOR DELAYS, IT'S WAITING ON OTHER DEVELOPMENT TO START AND FILL IN, AND CURRENTLY NO PLANS HAVE BEEN SUBMITTED FOR REVIEW. 711 IS NEARING COMPLETION.

SL6 STONELAKE IS LIGHT INDUSTRIAL SPEC BUILDING.

IT'S APPROXIMATELY 102,000FT².

THE PERMIT IS APPROVED AND THE PROJECT IS READY TO GO.

WE NEED TO HOLD A PRE-CONSTRUCTION MEETING AND PAY FEES THAT'S ANTICIPATED TO START SOMETIME, SOMETIME IN THE NEXT FISCAL YEAR.

I MENTIONED EVOLVE THAT IT'S CURRENTLY ON HOLD AND HOPING TO GET MOVING AGAIN IN THE NEXT SEVERAL MONTHS.

TRINITY MEDICAL OFFICE BUILDING IS STILL OPEN.

IT HAS OPEN OFFICE SPACE AVAILABLE AND MEDICAL CITY THOUGH NOT OWNING THAT.

TRINITY MOBILE MEDICAL OFFICE BUILDING IS CURRENTLY FINISHING OUT A SUITE OF JUST UNDER 4600FT².

THEN THE STATION RETAIL PHASE TWO NATIONS BURGER BURGERS AND CANE ROSSO HAVE BEEN ISSUED PERMITS FOR TENANT FINISH OUTS, AND IT'S ANTICIPATED TO COMPLETE IN EARLY 2025.

REGARDING NEXT STEPS, I CAN STATE THAT TIRZ ONE IS FULLY REIMBURSED THE UTILITY FUND AND THE SACHSE EDC THAT WE'VE BEEN MEETING WITH OUR FINANCIAL CONSULTANT.

WE'VE BEEN LOOKING AT DO WE COLLAPSE TIRZ ONE PRIOR TO THE 2025 TERM END, WHICH WOULD BE IN 2028?

[00:30:03]

THE TIRZ ONE HAS MET ITS INTENDED PURPOSE OF PAYING OFF THE LOANS FOR THE INFRASTRUCTURE FOR WATER AND SEWER AND THOUGHTS ARE, YOU KNOW, MAYBE SET ASIDE SOME REMAINING FUNDS FOR PLEASANT VALLEY ROAD.

ON THIS SLIDE AND AN OFFERING FOR ANY QUESTIONS.

IT SHOWS THE EXISTING DEVELOPMENT AND THE MAJOR DEVELOPMENT ACTIVITIES GONE THROUGH IN THIS PRESENTATION.

ON THE ARIA DEVELOPMENT.

THE LAND TO THE SOUTH.

THAT'S NON DEVELOPABLE.

THAT'S ALL FLOODPLAIN CORRECT.

I THAT'S THE LAST I HEARD.

SO JUST THE VACANT PROPERTY ON THE WEST SIDE IS DEVELOPABLE.

DEVELOPABLE. SAY THAT THREE TIMES FAST.

OKAY. JUST VERIFICATION.

SLOW, BUT KNOW THAT IT'S NOT ALL GOING ABLE TO BE DEVELOPED.

OKAY. I KNOW YOU ASKED FOR POSSIBLE QUESTIONS OR WHATNOT, BUT WHEN WE ARE THINKING ABOUT WHAT TO DO WITH THIS TIRZ FUND, I KNOW WE MEET ONCE A YEAR OR WHATEVER, YOU KNOW, A VERY LIMITED TIME FRAME HERE.

SO WHEN WOULD SUGGESTIONS NEED TO BE PRESENTED? WHEN WOULD WE FOLLOW UP ON IT? THINGS ALONG THOSE LINES. YEAH.

PER THE APPRAISAL DISTRICTS, THEY NEED TO KNOW GOOD TIMING WOULD BE IF ANYTHING WAS GOING TO BE BROUGHT TO COUNCIL OR BROUGHT FURTHER.

WE'RE TALKING AROUND, YOU KNOW, FEBRUARY, MARCH, PROBABLY BY THE END OF APRIL.

WE'D NEED TO HAVE FINAL DECISIONS BECAUSE ULTIMATELY THE APPRAISAL DISTRICTS NEED TO KNOW IN BY JULY.

OKAY. IS THE ONLY IT LOOKS LIKE IT MAY BE A POSSIBLE SUGGESTION, THE PLEASANT VALLEY ROAD.

I KNOW THERE'S OTHER THINGS IN TALKS ABOUT HOW WE CAN GET THAT TAKEN CARE OF RIGHT NOW.

BUT ARE THERE OTHER SUGGESTIONS THAT WHAT WE COULD USE, OR WHAT EXPECTED FUNDS WE WOULD HAVE IN THE TIRZ BUCKET BY APRIL TIME FRAME BY THE LOOKING AT THE BUDGET FOR FISCAL YEAR 24-25 AND THE CURRENT FUND BALANCE, WE SHOULD HAVE APPROXIMATELY, I BELIEVE IT WAS $1.4 MILLION BY THE END OF THIS FISCAL, 24-25.

RYAN, I BELIEVE WE'RE TALKING ABOUT 600,000 PLUS PER YEAR BEYOND THAT.

SO FOR 26 THROUGH 28 THERE COULD BE A SIGNIFICANT CHUNK OF MONEY IF WE LET IT CONTINUE TO RUN.

WE COULD, YOU KNOW, PATHS COULD BE IDENTIFYING OTHER PROJECTS TO WORK THROUGH.

IT COULD ENTAIL P3 COMING TO PERHAPS THIS BOARD TO COUNCIL TO IDENTIFY A, YOU KNOW, A NEW PLAN.

ARE THERE LIMITATIONS ON WHAT IT CAN BE SPENT ON? IT HAS TO BE IN THIS IN THE SAME ZONE AREA OKAY AREA.

SO MAKE SURE. OKAY. YEAH I WAS GOING TO COMMENT THE PLEASANT VALLEY PORTION THAT'S ONLY ELIGIBLE WOULD BE THE PIECE ESSENTIALLY BETWEEN EVOLVE AND NORTH PLACE IN THAT ZONE OF PLEASANT VALLEY.

AND TO KIND OF COMMENT ON YOUR INITIAL QUESTION THE COUNCIL GOT WITH OUR BOND COMMITTEE.

FINANCIERS, IF YOU WILL, AND SAID, BASICALLY, WHAT WOULD IT BE COST EFFECTIVE TO ESSENTIALLY, YOU KNOW, GET RID OF THE TIF ONE WITH ALL THE PENALTIES WE'D HAVE TO PAY TO CLOSE IT EARLY.

AND I DON'T KNOW WHAT THE RESULT OF THAT WAS IF IT WAS COST EFFECTIVE OR NOT.

SO A LOT OF COST WOULD BE WOULD THERE BE TO CLOSE IT DOWN? THERE IS A CONSIDERABLE AMOUNT OF FEES REALLY TO DO IT WITH THE STATE.

AND I DON'T KNOW WHAT THAT ANSWER WAS, BUT WE GOT WITH OUR FOLKS AND JUST SAID, HEY, YOU KNOW, WHAT WOULD THE COST BE? IT DOESN'T MAKE SENSE IF WE'RE GOING TO MAKE $SACHSE0,000 OVER THE NEXT THREE YEARS AND IT COST US $500,000.

DO WE DO THAT OR I DON'T KNOW WHAT THE NUMBERS ARE.

I'M JUST THROWING GENERALIZED NUMBERS OUT THERE.

DOES IT MAKE SENSE IF WE'RE GOING TO MAKE $2 MILLION AND WE ONLY HAVE TO SPEND $10,000 TO CLOSE IT, DOES IT MAKE SENSE? DOES THAT MAKE SENSE? SO I DON'T KNOW WHAT THE WHAT THE RESULT OF THAT THOSE QUESTIONS WERE.

WHO MAKES THE DECISION ON CLOSING IT DOWN OR NOT? DOES THE CITY COUNCIL MAKE THE DECISION OR DO WE MAKE THE DECISION OR WHO DOES? THAT'S A GREAT QUESTION.

I THINK ULTIMATELY THE CITY MANAGER WOULD MAKE A RECOMMENDATION TO COUNCIL, AND THE COUNCIL IS THE ONE THAT MAKES THE FINAL CALL.

I MEAN, THEY'RE THE ONE THAT SET IT UP, CORRECT? YEAH. I DON'T THINK THIS BOARD COULD CLOSE THAT FUND FOR THE RECOMMENDATION.

YEAH. YEAH. I MEAN, IT'S ESSENTIALLY ADVISORY ROLE, RIGHT? I MEAN, BUT WITH THE FUNDS THAT WERE LEFT OVER WHENEVER, IF AND WHEN IT CLOSES OR IF IT RUNS TO IT'S TERMINATION IN 2028, THE MONEY THAT'S LEFT THERE, CAN

[00:35:05]

IT HAS BEEN IT'S EXPLAINED TO ME THAT IT'S BEST USED WITHIN THIS ONE AREA.

AND I ALL I'VE HEARD ARE THOUGHT PROCESSES AROUND IT'S SPENDING WITHIN THIS ONE ZONE.

TIRZ IS CREATED BY THE STATE, SO I'M ASSUMING WHATEVER'S LEFT IN THERE WHEN IT EXPIRES WOULD GO TO THE STATE.

I THOUGHT IT WAS ESTABLISHED BY THE CITY COUNCIL.

AM I MISTAKEN? CITY ORDINANCE.

IT NEEDS TO BE FILED WITH THE COMPTROLLER.

THESE ARE FUNDS THAT THE CITY HAS SET ASIDE THAT WOULD OTHERWISE HAVE GONE TO THE CITY THAT'S OTHERWISE GONE TO THE CITY? CORRECT? YES. NOT THE STATE.

CORRECT. YEAH. OKAY, THEN THAT WOULD MAKE SENSE.

SORRY. BASICALLY THE PURPOSE OF THE TOURS IS WHATEVER A PERCENT OF THE TAXES GAINED FROM THAT PROPERTY HAVE TO BE SPENT AND STAY IN THAT PROPERTY.

WE CAN'T USE IT ON, LET'S SAY, HIGHWAY 78.

IF IF THAT PERCENTAGE OF MONEY CAME FROM THIS, WE HAVE TO USE IT PARTICULARLY FOR THIS.

YEAH. BUT ONCE LIKE YOU WERE ASKING ONCE THE TIRZS EXPIRES AND THERE'S $600,000 IN THERE, DOES IT IF THE TIRZ IS EXPIRED, DO WE HAVE TO USE THAT MONEY IN THERE? WELL, THE MONEY WOULD HAVE GONE IF IT WASN'T FOR THE TIF OR TIRZ OR WHATEVER.

IT WOULD HAVE GONE TO THE CITY, WOULDN'T IT? BUT WE'RE ALSO SPECULATING A LOT THAT WE'RE GETTING RID OF THIS.

SO WE'RE KIND OF GETTING AHEAD OF OURSELVES A LONG WAY.

AT SOME POINT, UNLESS IT'S 2028, IT'S GONE IN 2028, UNLESS IT'S EXTENDED SOMEHOW.

WELL, THE CITY COUNCIL WILL BE THE ONE THAT MAKES THAT DECISION TO EXTEND IT, WHICH I SEE NO REASON TO DO, BUT I DON'T KNOW THAT IT CAN BE EXTENDED.

HOWEVER, ANOTHER PLAN COULD BE CREATED THAT I KNOW FOR SURE, AND I DON'T THINK THERE'S ANY PURPOSE TO EXTEND IT, BECAUSE NOW WE HAVE THE TIF IN THE SAME AREA.

AS IT STATED IN YOUR THING.

IT'S PRETTY, IT'S ALREADY ACCOMPLISHED ITS GOAL.

YEAH. SO IF IT'S DISCONTINUED, I JUST GOT HERE.

I DON'T UNDERSTAND IT. WHATEVER.

IT EVEN PREDATED YOUR MAYORSHIP.

SO THE $600,000 MIGHT GO TOWARDS PLEASANT VALLEY.

THE PROJECT FOR PLEASANT VALLEY.

WHAT IS THE COST FOR PLEASANT VALLEY'S PROJECT? BUT COULDN'T IT ONLY GO TOWARD THE PLEASANT VALLEY SECTION? THAT'S. YES. NO. WHAT IS THAT COST FOR THAT SECTION? OH, YEAH. DO WE KNOW $40 MILLION? YEAH, IT'S GOING TO BE.

YEAH, THAT'S 600,000 IS NOT.

THAT'S TODAY. BUT TOMORROW IT'LL BE 50.

THAT'S A GUESSTIMATE.

BUT I'M BETTER I THINK I'M CLOSER TO THAT THAN SOMETHING WITHIN THE WITHIN THIS SET.

WE COULD USE IT ON. THAT MIGHT BE A LITTLE BIT MORE FRUITFUL.

SOUNDS LIKE HE IS.

BY THE END IT WOULD BE 3 MILLION ISH.

YEAH. HOW MUCH OF PLEASANT VALLEY IS ACTUALLY IN THIS TIME ZONE? IT'S ALMOST 10%.

THE PIECE ALL THE WAY FROM ESSENTIALLY MILES THAT BYPASSES NORTH PLACE CHURCH AND IT GOES AROUND, EVOLVE AND CONNECTS BACK TO 190.

THAT WOULD BE THE ONLY PORTION.

YEAH. THAT WOULD BE THE ONLY PORTION.

SO WHATEVER THAT COST IS, IF WE COULD FIND OUT WHAT THAT IS, I'D APPRECIATE IT.

OKAY. BECAUSE ALL OF THE NEW ROADS, THE STATION BOULEVARD AND THE COMMONS AND ALL THOSE, THOSE ARE NEW.

SO WE WOULDN'T BE REPLACING THOSE.

THERE'S NO NEED TO.

SO REALLY, THE ONLY TRUE ROAD THAT WE COULD DO ANYTHING IN MAYBE MERIT.

BUT I DON'T THINK MERIT IS IN THE TIRZ.

JUST BY COST.

RIGHT. RIGHT.

YEAH. YEAH.

THE ONLY PART OF PLEASANT VALLEY THAT COULD BE INCLUDED IS THE SOUTH OF 30.

THE SOUTH OF GEORGE BUSH.

RIGHT. WELL, BY THE MAP, THE SOUTHERN PORTION OF MERRITT IS IN, BUT THAT'S BEEN ESSENTIALLY REDONE BY.

YEAH. YEAH.

YEAH. SO THAT'S THE ONLY PROJECT UNLESS THERE'S ANY OTHER WATER SEWER NEEDS ON THE SOUTH SIDE WOULD BE MORE FRUITFUL FOR THAT, I DON'T KNOW.

WELL, MY UNDERSTANDING TOO WAS THAT THE MEDICAL, NOT THE MEDICAL, THE BIOTECH COMPANY EVOLVED THAT THEIR PROBLEM WAS ACCESS TO ENOUGH GAS, THAT ATMOS COULD NOT PUSH ENOUGH GAS TO POWER THE BUILDING.

I'VE NEVER HEARD THAT. THAT'S WHAT I HEARD FROM ONE OF THE POLICE OFFICERS.

SO IF THAT WAS THE SITUATION, MAYBE THAT COULD BE HELP OUT THERE.

BUT I DON'T REALLY KNOW.

THAT'S JUST WHAT I HEARD. YEAH, I'VE NEVER HEARD THAT THEY EXCEEDED THEIR CURRENT FUNDING OF CONSTRUCTION.

AND THEIR NEXT TRANCHE OF FUNDING IS COMING DECEMBER.

JANUARY. SO IT'S ALL ON THEM.

OKAY. WELL, THERE IS NOTHING ON OUR END.

THAT'S NOT TRUE.

THERE'S STILL SOMETHING WE COULD HELP OUT IF THAT WAS THE SITUATION.

I WON'T DISAGREE WITH YOU.

I'LL JUST SAY I HAVEN'T HEARD THAT BEFORE.

IT WAS A RUMOR OR SOMETHING, MIKE.

YOU DON'T HEAR EVERYTHING, DO YOU?

[00:40:02]

THERE'S PLENTY OF GAS OUT THERE.

I'M SURE. WELL, I'M SURE THERE'S GAS OUT THERE.

PART OF WHAT? THE INFRASTRUCTURE IS ALREADY THERE FOR THE GAS.

I THINK SO.

IT'S ALREADY IN THE GAS.

YEAH, RIGHT. YEAH.

WE SHOULD TAKE CARE OF THAT.

ALL OF THE FRANCHISE UTILITIES WERE DONE BY THE COMPANY.

BUT HOW MUCH DO THEY NEED? I DON'T KNOW.

IT'S A GOOD QUESTION.

I CAN FIND AN ANSWER OUT REAL QUICK.

I KNOW WHO TO ASK. OKAY, GOOD.

ANY OTHER COMMENTS OR QUESTIONS? ONE QUESTION. JUST SO THE TIRZ'S MONEY IS CREATED BASED ON THE VALUE OF THE LAND OR THE PROPERTIES THAT ARE THERE, RIGHT WHEN TERM EXPIRES OR WE DO AWAY WITH IT.

WHATEVER IT HAPPENS, THAT MONEY IS GOING TO GO BACK TO THE CITY.

THERE'S NO DISCOUNT ON THE LIKE.

THE TAX PORTION OF THAT IS NOT GOING TO BE REDUCED FOR THOSE PROPERTIES OR WHATNOT.

RIGHT. THE FUNDS GENERATED WOULD GO BACK TO THE CITY AS FAR AS THAT PROPERTY GOING ONTO THE TAX ROLLS.

IT COMES AS AN EXISTING BASE BECAUSE OUR BASE INCREASES THE NO NEW REVENUE.

NO NEW REVENUE RATE WOULD BE LOWERED.

THE VOTER APPROVAL RATE WOULD BE LOWERED.

OKAY. I WAS JUST MAKING SURE THAT THERE'S NO THERE'S NO DISCOUNT OR THERE'S NO.

IF WE DECIDED TO WAIT THREE YEARS FOR IT TO EXPIRE, ARE WE FOREGOING ANY SORT OF BENEFIT FOR THESE LOCATIONS TO HAVE A LOWER TAX RATE OR SOMETHING LIKE THAT, BUT COULD BE BENEFICIAL TO CLOSE TO ONE.

THEREFORE, ANY OF THIS NEW ACTIVITY WOULD BE CONSIDERED NEW CONSTRUCTION TO THE GENERAL FUND.

AND SO THERE'S NOT A LIMITER PUT ON THE GENERAL ON THE NEW CONSTRUCTION THAT THE CITY RECEIVES.

SO IT COULD BE MORE BENEFICIAL TO HAVE THAT WITHIN THE GENERAL COLLECTIONS OF THE CITY.

I WOULD BE CURIOUS, AS MAYOR PRO TEM FRANK SAID WHAT IT WOULD COST TO CLOSE EARLY.

YOU KNOW, THE TIRZ FUND.

SO IF THERE'S ANY PENALTIES, LIKE CLOSING IS EXPENSIVE AND IT REVERTS TO THE CITY ANYWAY, IT SEEMED TO MAKE SENSE JUST TO WAIT IT OUT. I AGREE, BUT IF IT'S THROW AWAY HALF $1 MILLION OR IF IT'S 5000 THOUGH.

YEAH. IF IT CLOSES, IF IT IS CLOSED, THEN THE FEES ARE CHARGED FOR CLOSING.

WHO GETS THOSE FEES.

STATE PROBABLY.

IS THAT A STATE DEAL? I'M SURE THAT'S WHO WE HAVE TO PAY THE FEES TO CLOSE THE FUND.

I'M SURE THAT'S WHO WE'D HAVE TO PAY THE FEES TO CLOSE THE FUND.

YEAH. THAT'D I'D BE NO POINT IN DOING THAT.

BUT IS IT AGAIN? IS IT 5000 OR IS IT 500,000? I DON'T I NEVER GOT A I DON'T REMEMBER GETTING AN ANSWER ON THAT BUT I WILL.

ALL RIGHT. DO YOU HAVE ANY MORE INFORMATION.

DO ANY OTHER COMMENTS.

I ENTERTAIN A MOTION.

WE DO NEED TO HAVE A MOTION ON THIS.

SO IT'S JUST A OKAY.

IT'S JUST AN UPDATE. ALL RIGHT, WELL, THAT'S IT.

YOU JUST BANG THE GAVEL.

I ENTERTAIN A MOTION TO ADJOURN.

DO WE HAVE TO ADJOURN? SECOND, IF WE HAVE TO.

I DIDN'T THINK WE HAD TO. I DON'T KNOW, WE HAVE TO HAVE A I'VE HEARD NO MOTION OF ORDER.

I'VE HEARD IT BOTH WAYS.

NO MOTION NECESSARY. YOU CAN JUST END IT IF YOU'D LIKE.

IT'S UP TO YOU. ALL RIGHT.

I CONSIDER THAT THE TIF BOARD MEETING IS ADJOURNED.

I ALWAYS WANT TO DO THAT.

GOOD JOB. SO, YEAH, I OUGHT TO GET A PICTURE OF OUR GROUP.

* This transcript was compiled from uncorrected Closed Captioning.