TIRZ No. 1 and No. 2 Board Meeting

Tax Increment Reinvestment Zone (TIRZ) No. 1 & No. 2 Board Special Meeting Minutes March 19, 2018 at 4:00 p.m. A Special Meeting of the TIRZ No. 1 & No. 2 Board was held Monday, March 19, 2018 beginning at 4:00 p.m. in the City Hall Council Chambers located at 511 Mercer Street, Dripping Springs, Texas. I. CALL TO ORDER AND ROLL CALL Board Members present were: Dave Edwards - Chair Mim James - Vice Chair Missy Atwood (arrived at 4:06 p.m.) Mike Figer Dr. Bruce Gearing John McIntosh Ray Whisenant (arrived at 4:46 p.m.) City Staff/Officials present were: Michelle Fischer, City Administrator Keenan Smith, TIRZ Project Manager Laura Mueller, Assistant City Attorney With a quorum of the Board present, Chair Edwards called the meeting to order at 4:05 p.m. II. BUSINESS (TIRZ #1 and TIRZ #2) Consideration and possible action on: A. Discuss and consider an Interlocal Agreement related to real property and market studies between the City of Dripping Springs, Dripping Springs Independent School District, Dripping Springs Community Library District, and Tax Increment Reinvestment Zone #1 and Tax Increment Reinvestment Zone #2, Dripping Springs, Texas, in connection with the development and construction of the Town Center Project. A motion was made by Board Member Figer to approve the Interlocal Agreement. Board Member Atwood seconded the motion. Vice Chair James asked why the market study and the P3 study. Keenan Smith gave reasons why these studies are important for valuing the property. The Market Study will help determine the quantities and type of buildings, and the absorption rate. It is also a financial proof of our plan and Market Viability. The P3 study is conducted to review market viability with a private stakeholder. Identifying financing structures and funding (other than TIRZ TIRZ No. 1 & No. 2 Board March 19, 2018 Special Meeting Minutes Page 1 of 3  funding): Private funding; Formulate master developer prospectus (RFQ/pre- offering); Forum with private developers. Vice Chair James asked about timing. Keenan Smith expressed the need for facilities, and that doing these two together will help with the planning and engineering. Vice Chair James understands the Library’s timing but wants to make sure we are not paying for things too quickly. Michelle Fischer reviewed the timing. The City will likely be doing the agreements. Keenan Smith explained the need is for these two studies in staggered parallel. The ad hoc committee spoke with the Market Study consultants. It might be tight to get both done by April 18th. Laura Mueller stated the next council meeting after that is May 8. Board Member Dr. Gearing asked about whether other dates before the October date was needed; and about the two appraisals? Board Member Atwood stated that it may improve the value of the deal to know that the land with the improvements is actually worth less. Asbestos remediation and remove of the buildings. The dates will change for the P3 study to be entered into by May 16. Board Member Dr. Gearing discussed the December dates for the final interlocal. Expenses issues was raised, and Vice Chair James noted that we need to get a Cost Sharing and Reimbursement and to base all reimbursements on that Agreement. They are still working on a Cost Sharing committee which would start meeting first without Taussig & Associates, and later they would meet Taussig (TIRZ Administrator). Board Member Atwood will get a name for Vice Chair James by the end of the week. Vice Chair James wants to have a draft agreement by the first part of May. Board Member Figer and Elaine Cogburn (DSISD) also to be on committee. The City still hasn’t gotten the check from Hays County. Discussion regarding where the funding comes from. City funds can come from those already allocated or new funds. Laura Mueller will make the changes to the Interlocal. Chair Edwards called the question. TIRZ No. 1 & No. 2 Board March 19, 2018 Special Meeting Minutes Page 2 of 3  Board Member Figer withdrew his motion to approve the Interlocal Agreement. Board Member Atwood withdrew her second, and there is no motion on the table. A motion was made by Vice Chair James to approve the Interlocal Agreement with the following changes: 1) Change the Appraisal due date to XX/XX/XX; 2) Change the P3 date to May 16, 2018; 3) All reimbursements related to Cost Sharing Agreement that will be prepared; 4) Change “personal property” to “existing improvements”; 5) City’s funding of consultant costs can be from already allocated funds or new funds; and 6) With the understanding that a Cost Sharing and Reimbursement Agreement will be negotiated timely. Board Member Atwood seconded the motion which carried 6 to 0 to 1, with Board Member Whisenant abstaining as he was not present for the motion. III. EXECUTIVE SESSION The TIRZ No. 1 & No. 2 Board for the City of Dripping Springs has the right to adjourn into executive session at any time during the course of this meeting to discuss any matter as authorized by Texas Government Code Sections 551.071 (Consultation with Attorney), 551.072 (Deliberations about Real Property), 551.073 (Deliberations about Gifts and Donations), 551.074 (Personnel Matters), 551.076 (Deliberations about Security Devices), and 551.086 (Economic Development). The Planning and Zoning Commission for the City of Dripping Springs may act on any item listed in Executive Session in Open Session or move any item from Executive Session to Open Session for action. The Board did not meet in Executive Session. V. ADJOURN A motion was made by Vice Chair James to adjourn the meeting. Board Member Dr. Gearing seconded the motion which carried unanimously 7 to 0. This special meeting adjourned at 4:57 p.m. TIRZ No. 1 & No. 2 Board March 19, 2018 Special Meeting Minutes Page 3 of 3