DEPARTMENT: Planning and Community Development
DEPARTMENT HEAD: Bridgett White
COUNCIL DISTRICTS IMPACTED: 4
SUBJECT:
Termination of Tax Increment Reinvestment Zone #22 - Ridgestone and approval of the Close-Out Finance Plan.
SUMMARY:
City Council is being asked to consider an Ordinance authorizing the termination of Tax Increment Reinvestment Zone #22 - Ridgestone and approval of the Close-Out Finance Plan due to Developer Default.
BACKGROUND INFORMATION:
On December 16, 2004, the Ridgestone Tax Increment Reinvestment Zone was created.
On March 1, 2007, the Final Project and Financing Plans for the Ridgestone Tax Increment Reinvestment Zone were approved.
On August 30, 2007, the Development Agreement and County Interlocal Agreement for the Ridgestone Tax Increment Reinvestment Zone were approved.
By December 31, 2009, the Developer, Big Fish on Five, had completed all infrastructure improvements to for 234 single family homes, of which 185 had been built by various home builders. The Developer fell upon difficult financial times soon after.
On July 14, 2011, a Notice of Default was sent to the Developer citing several breaches of the Development Agreement, including a Notice of Default and Failure on the part of the Developer to submit required progress reports to the City. This created the grounds for the termination of the Development Agreement and the Tax Increment Reinvestment Zone.
On August 17, 2011, the City received a letter from the Developer stating that City Bank Texas was the owner of the Development Agreement and should be recognized by the City as the Developer. This began a legal determination as to whether City Bank Texas has the legal right to the assignment. It was determined in February, 2016 by the City Attorney's Office that City Bank Texas did not intend to pursue any assignment or other rights to the Development Agreement.
On March 1, 2016, a letter was sent by the City Attorney'...
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