DEPARTMENT: Planning & Community Development
DEPARTMENT HEAD: Bridgett White, Director
COUNCIL DISTRICTS IMPACTED: 2 & 10
SUBJECT:
Public Hearing and Consideration of an Ordinance amending the boundary of the Northeast Corridor Tax Increment Reinvestment Zone (TIRZ) #33, by adding approximately 595 parcel acres to further economic development opportunities within the zone.
SUMMARY:
Consideration of an Ordinance amending the Northeast Corridor TIRZ boundary. The boundary amendment will increase the size of the Northeast Corridor TIRZ by approximately 595 parcel acres.
BACKGROUND INFORMATION:
The City Council designated the Northeast Corridor TIRZ #33 on December 4, 2014 to further economic development opportunities along the Perrin Beitel and Nacogdoches corridors. Since then, the City staff has received inquiries regarding increasing the Northeast Corridor TIRZ boundary in anticipation of economic development opportunities within the zone. On October 27, 2016, the Northeast Corridor TIRZ Board met and approved the boundary amendment.
The Northeast Corridor TIRZ is located in City Council Districts 2 and 10. The boundary is generally along both sides of Perrin Beitel Road north of Loop 410 to Thousand Oaks road then continues to the northeast along both sides of Nacogdoches to O’Conner road. The western portion of the boundary extends southwest from the intersection of Perrin Beitel and Naco-Perrin Boulevard along both sides of Naco-Perrin to approximately Wurzbach Parkway then heads to the northwest along the northern edge of Wurzbach Parkway to Wetmore Road. At the intersection of Wurzbach and Wetmore, the boundary heads northeast along the southern edge of Wetmore to Thousand Oaks then follows the southern edge of Thousand Oaks back to Nacogdoches road. (see attached maps)
ISSUE:
In accordance with Chapter 311 of the Tax Code, the “TIF Act”, the boundaries of an existing reinvestment zone may be reduced or enlarged by ordinance or resolution of the governing body of the municipality that created the zone. This action will amend the boundary of the Northeast Corridor TIRZ #33 and authorize staff to make amendments to the TIRZ Project and Finance Plans to incorporate the changes to the boundary, to further economic development opportunities within the zone.
In accordance with Chapter 311.006 “Restrictions of Reinvestment Zones”, a municipality may not designate a zone (or change the boundary of an existing zone) if more than 30% of the property in the proposed zone, excluding property that is publicly owned, is used for residential purposes. The proposed boundary amendment does not cause the zone to contain more than 30% residential purposed property.
The boundary amendment is consistent with Northeast Corridor Revitalization Plan and the Project Plan. The proposed boundary amendment adds approximately 595 parcel acres to the existing 1,233 parcel acres, for a total of approximately 1,828 parcel acres to the current Northeast Corridor TIRZ boundary. This addition incorporates the amended boundary which begins at the intersection of Wetmore and Thousand Oaks, then generally along both sides of Thousand Oaks south easterly to the Union Pacific Rail Road as the south east boundary. The eastern portion extends from Perrin Beitel and Wurzbach Parkway east on Wurzbach Parkway, bound by the Union Pacific Rail Road at the east, Morrison Kallison Park to the south, and Schertz Road to the north generally south of Casa Oro. (see attached maps) The proposed boundary amendment adds assessed value of approximately $103,759,317.00, based on the Dec. 4, 2014 Bexar Appraisal and will capture potential projects in the areas adjacent to Toyota Field.
ALTERNATIVES:
City Council could decide not to approve the requested increase to the Northeast Corridor TIRZ #33 Boundary amendment; however this would prevent further economic development opportunities within the zone.
FISCAL IMPACT:
With the approval of these proposed boundary amendments, the Northeast Corridor TIRZ fund will begin to capture tax value on improvements and growth occurring above the base value established on December 4, 2014 for those parcels added to the zone.
Tax increment generated from any captured value will be used to fund public improvements within the zone as described in the Final Project and Finance Plans. At the expiration of the TIRZ, any additional tax value realized through the life of the TIRZ will be added to the tax rolls through the new investment stimulated through the public improvements in the zone.
RECOMMENDATION:
Staff recommends Approval of an Ordinance amending the Northeast Corridor TIRZ #33 boundary, adding approximately 595 parcel acres and authorizing staff to make necessary changes to the Northeast Corridor TIRZ #33 Project and Finance Plans to further economic development opportunities within the zone.