TIRZ Number 5 Board - (Downtown)

City of San Marcos MEETING AGENDA TIRZ # 5 Board March 24, 2022, 10:00 a.m. Virtual Zoom Meeting 1. Call to Order 2. Roll Call 3. Citizen Comment Period Persons wishing to participate (speak) during the Citizen Comment portion of the meeting must email FinanceInfo@sanmarcostx.gov prior to 10:00AM the day of the meeting. A call in number to join by phone or link will be provided for participation on a mobile device, laptop or desktop computer. 4. Consider approval, by motion, of the December 13 & 20, 2021 meeting minutes: (pg. 2) 5. Update regarding Activities and Projects approved in Project & Financing Plan: Laurie Moyer (pg. 6) 6. Update regarding financials: Anna Miranda (pg. 7) 7. Review and approval of amended Project and Financing Plans: Anna Miranda (pg. 8) 8. Review and consider approval of Application Form: Anna Miranda (pg.23 ) 9. Future agenda items 10. Adjourn The zoom information is below: Please click the link below to join the webinar: https://us02web.zoom.us/j/88126216126 Or One tap mobile : US: +13462487799,,88126216126# or +12532158782,,88126216126# Or Telephone: Dial(for higher quality, dial a number based on your current location): US: +1 346 248 7799 or +1 253 215 8782 or +1 669 900 6833 or +1 929 205 6099 or +1 301 715 8592 or +1 312 626 6799 or 877 853 5247 (Toll Free) or 888 788 0099 (Toll Free) Webinar ID: 881 2621 6126 International numbers available: https://us02web.zoom.us/u/kBDe7SC6r 1  City of San Marcos MEETING MINUTES TIRZ # 5 Board Monday, December 13, 2021, 2:00 p.m. 1. Call to Order The meeting was called to order at 2:06 p.m. 2. Roll Call Present: Mayor Hughson, Council Member Baker, Commissioner Debbie Ingalsbe, Commissioner Lon Shell, and Mr. Kyle Mylius. Absent: None City staff present: Bert Lumbreras, Stephanie Reyes, Michael Cosentino, Marie Kalka, Anna Miranda, Stephanie Eller, Shannon Mattingly, Laurie Moyer, Rebecca Ybarra, Peter Binion, Josie Falletta, and outside counsel Bart Fowler. 3. Citizen Comment Lisa Marie Coppoletta: Joined late due to meeting link not working properly. Did not receive confirmation regarding sign up for the citizen comment period. Brought up concern regarding gas leak, thanked Laurie specifically for returning phone call about the gas leak. She wanted to point out that not everyone is on Facebook, recommends that the city should also send a text notification. Would like to see everyone in attendance to the meeting, not just the speaker. Commented on Agenda packets not being available, there have not been Citizen Comment Periods previously and there no questions from the Press & Public on the agenda. With the secrecy of the agenda and minutes, have the residents in the area been notified of the issues with TCEQ, will they be notified of the demo, and why was the public not told about this before the $2.4 million investment. Do not understand how it was able to get this far and why the information from the TCEQ was not in the packet when the City of San Marcos purchased this property. There is a robust article at the SM Corridor News calling this the $2 million bail out. Concerned that the Citizens and the elected officials did not know about the TCEQ issues. Did not receive reports until after decision/purchase was made. Finally, what is this purchase for, we haven’t been told, it wasn’t discussed when the city council made the investment, it hasn’t been discussed at the HBC. Feel that residents deserve this information. 4. Consider approval, by motion of the December 13, 2021 meeting minutes Commissioner Shell made a motion to approve, seconded by Commissioner Ingalsbe, approved unanimously. 2 5. Update regarding Activities and Projects approved in Project & Financing Plan Josie Falletta provided downtown update. Working on funding, noted LBJ as one of the top priority items. Laurie Moyer provided downtown construction update. Second townhall just completed. Pete Binion updated on Shuttle/E-Cab project. End of December – beginning of January is the timeline for RFP post. Laurie on Property Acquisition – multiple concerns regarding contamination, closing up on TCEQ Clearance. 6. Update regarding financials Marie Kalka went over financial reports through September 30, 2021. Mr. Mylius asked about the 5% growth being a conservative figure. Ms. Kalka briefly went over previous years. 7. Visioning session for discussion, direction and action as appropriate for the Project & Financing Plan Project & Financing plan:  Ms. Kalka provided brief introduction.  Mr. Lumbreras shared the prospective of the work leading up to this agenda setting.  Mayor Hughson shared some ideas, main goal to increase commerce downtown, to help ensure local businesses are successful, and to create a climate for more diverse businesses.  Various options were discussed in support of increasing downtown commerce and enjoyment by the public including beautification projects.  Consensus on the use of TIRZ cash funds for projects versus issuing debt.  Discussion on outreach/timeline for receiving ideas regarding beautification and improvements using TIRZ funding. Josie is working on kick off of Downtown Master Plan process. Which could be a great opportunity to include this in the master plan and prioritize projects that would positively impact downtown business the most.  Mr. Lumbreras asked for clarification regarding main goals. Vote unanimous for beautification. Mr. Lumbreras also suggested a parking management/parking partnership possibility. Contribution Rates:  Discussion regarding contribution rate. Consensus reached on increasing the contribution rate back up to 70% from past two years of 25%. Commissioner Shell – yes, Commissioner Ingalsbe – yes, Mr. Baker – yes, Mr. Mylius – yes, Mayor – yes. Mr. Mylius posed question regarding a way to prorate or increase above 70% to recoup any shortfall from FY21 & FY22? Ms. Kalka responded that it was decreased due to the financial challenges faced during the pandemic. Concern is that there are still potential challenges. 3  Process:  What is the expectation of the process for requesting to bring items to the board and process for requesting funding? Mayor’s thoughts are to do something similar to the BIG grant program & Arts Funding.  All members in agreeance that there should be a simple application, some review by staff but the board would like to see all applications submitted. Submissions accepted twice per year with possible submissions in between periods depending on nature and urgency of request.  Ms. Kalka inquired on the requests already received, Chief Standridge presented on the Gun Shot Detection Cameras for the downtown area. Motion to approve by Ingalsbe made and then withdrawn per Mr. Cosentino recommendation to hold special meeting to discuss and vote as this specific item was not listed on the agenda to approve funds.  Board agreed to Special Short Meeting, to present PD request and business owner request. Agreed to bypass application process for the current requests. 8. Set Dates & Times for 2022 Board Meetings March 3rd, 2022 at 2:00 P.M June 3rd, 2022 at 2:00 P.M. September 8th, 2022 at 2:00 P.M. December 1st, 2022 at 2:00 P.M. 9. Future Agenda Items Add any future agenda items at the Special Meeting. 10. Adjourn The meeting adjourned at 3:45 p.m. 4  City of San Marcos MEETING MINUTES TIRZ # 5 Board December 20, 2021, 10:30 a.m. Virtual Zoom Meeting 1. Call to Order The meeting was called to order at 10:36 AM 2. Roll Call Present: Mayor Hughson, Commissioner Debbie Ingalsbe, Commissioner Lon Shell, and Mr. Mylius, Michael Cosentino Absent: Council Member Baker 3. Citizen Comment Period No citizen comments, Board also determined it is not necessary to add Q&A with Press and Public to agendas going forward, per City Attorney, it is not required. 4. Review funding request in the amount of $58,774.00, and consider approval of cameras for downtown area Chief Standridge presented on the details of this request, 2-3 month implementation. Amend Project and Financing Plan. Motion to approve by Commissioner Ingalsbe, Second by Commissioner Shell, Board approved 4-0. 5. Review funding request in the amount of $80,000.00, and consider approval of pedestrian safety and comfort improvements including lighting improvements, signage and crosswalk striping Josie Falletta presented the details of these improvements. Motion to approve by Mr. Mylius, Second by Commissioner Shell. Board approved 4-0. 6. Review funding request in the amount of $38,700.00, and consider approval of business upgrade of wastewater utilities Ms. Kalka noted Mr. Andy Howard presented on the details of this request. Question posed, if anyone else or other businesses would benefit from this request other than the business that is submitting the request. It was determined that the Wastewater line only serves the requesting business and possibly a residence. Upon board discussion, this request could not be approved at this time and should be submitted once the funding procedure and application is in place. 7. Future agenda items  Add to future agendas the review and amendment of the Project & Financing Plan.  Determine if the funding request be a TIRZ Funding match or full amount of improvement request submitted. 8. Adjourn Meeting adjourned at 11:23 AM 5  Approved TIRZ #5 Project Status Update 2/28/22 Update from previous report Approved amount = $330,000 In Construction. Work Completed: Electric UG conversion is complete. Justice Center Streetscape Improvement Future work: Remaining Silva Cells installation, irrigation, landscaping and sidewalk construction. Project Expected completion date is April 2022. Approved amount = $600,000 In Design. Work Completed: Preliminary Engineering Report complete. Jan 12, 2022 held open house on aesthtic concepts for Kissing Alley . Future work: Design scope has Alley Redevelopment (Phase 1) been revised to add Jack Alley electric UG conversion and Hutchison St drainage. Design is expected to start in March 2022 Cheatham Street Flats Alley Paving Approved amount = $49,612. Construction Completed. Approved amount = $200,000 Work completed: Board approved $80K for projects; staff are working to Pedestrian Safety and Comfort implement lighting, signage and crosswalk improvements. Future work: Develop estimates for next round of improvements, to be presented to TIRZ board as request. Approved amount = $500,000 Not Started: Pending completion of CAMPO study and TxDOT Downtown Reconstruction negotiations on City take over of state streets. Approved amount = $500,000 Work Completed: Staff and Parking Advisory Board (PAB) met to revise the RFP scope of services October 5, 2021. PAB voted and approved the revised scope of services on Downtown Shuttle October 18 and November 8, 2021. The Microtransit RFP was posted January 23, 2022. Future Work: (1 Year Pilot) Microtransit RFP proposals are due March 3, 2022. Staff will begin evaluation of the proposals March 10, 2022. Approved amount = $2,000,000 Acquisition Complete. Work Completed: 2nd round of comments received 1/7/22 from TCEQ on Affected Property Report. Future work: Response to TCEQ Property Acquisition and M & O on APR due 3/4/22. Take Municipal Settings Designation Ordinance to City Council for adoption. Fire Dept. to use Comet Cleaners structure for training pending demolition. Downtown Security Cameras Approved amount = $50,000. Procurement Underway. Identified TIRZ #5 Project Status Update 2/28/22 Update from previous report Main Street would like to present preliminary funding request for high priority downtown maintenance Beautification & Maintenance needs, including temporary full-time staff. 6 TIRZ #5-Downtown as of 3/18/2021 Annual Cumulative Cumulative Budget Total Value Increase Increase Total Revenue Revenue Expended/ Expended/ Year Tax Year Valuation From Base Year Percentage City Tax County Tax Available Available Budgeted Budgeted Balance FY13 2012 Actual 70% $105,083,437 $ 899,281 0.86% $ 5,795 $ 4,642 $ 10,437 $ 10,437 $ - $ - $ 10,437 FY14 2013 Actual 70% $116,524,339 $ 12,356,933 10.9% $ 43,472 $ 34,962 $ 78,434 $ 88,871 $ - $ - $ 88,871 FY15 2014 Actual 70% $143,130,508 $ 41,268,182 22.8% $ 140,785 $ 116,509 $ 257,294 $ 346,165 $ - $ - $ 346,165 FY16 2015 Actual 70% $145,033,604 $ 42,341,838 1.3% $ 149,771 $ 119,571 $ 269,342 $ 615,507 $ - $ - $ 615,507 FY17 2016 Actual 70% $151,017,107 $ 48,375,011 4.1% $ 173,695 $ 121,378 $ 295,073 $ 910,580 $ - $ - $ 910,580 FY18 2017 Actual 70% $190,650,978 $ 86,366,376 26.2% $ 368,718 $ 240,973 $ 609,691 $ 1,520,271 $ - $ - $ 1,520,271 FY19 2018 Actual 70% $226,246,103 $ 119,056,967 18.7% $ 509,532 $ 310,695 $ 820,227 $ 2,340,498 $ - $ - $ 2,340,498 FY20 2019 Actual 70% $247,526,912 $ 140,337,776 9.4% $ 616,057 $ 377,120 $ 993,177 $ 3,333,675 $ (1,638) $ (1,638) $ 3,332,037 FY21 2020 Actual 25% $341,673,734 $ 232,367,318 38.0% $ 344,464 $ 227,625 $ 572,088 $ 3,905,763 $ (2,001,380) $ (2,003,018) $ 1,902,745 FY22 2021 Budget 25% $365,178,908 $ 255,872,492 6.9% $ 385,728 $ 250,687 $ 636,415 $ 4,542,178 $ (2,130,000) $ (4,133,018) $ 409,160 FY23 2022 Estimated $383,437,853 $ 274,131,437 5.0% $ 1,157,109 $ 752,078 $ 1,909,187 $ 6,451,365 $ (4,133,018) $ 2,318,347 FY24 2023 Estimated $402,609,746 $ 293,303,330 5.0% $ 1,238,033 $ 804,739 $ 2,042,773 $ 8,494,138 $ (4,133,018) $ 4,361,120 FY25 2024 Estimated $422,740,233 $ 313,433,817 5.0% $ 1,323,004 $ 860,034 $ 2,183,038 $ 10,677,176 $ (4,133,018) $ 6,544,158 FY26 2025 Estimated $443,877,245 $ 334,570,829 5.0% $ 1,412,223 $ 918,093 $ 2,330,316 $ 13,007,492 $ (4,133,018) $ 8,874,474 FY27 2026 Estimated $466,071,107 $ 356,764,691 5.0% $ 1,505,904 $ 979,055 $ 2,484,959 $ 15,492,451 $ (4,133,018) $ 11,359,433 City .6030 County .3924 7 REV DRAFT March 20221 PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN FOR CITY OF SAN MARCOS, TEXAS TAX INCREMENT REINVESTMENT ZONE NO. 5 8 REV DRAFT March 20221 Table of Contents The TIRZ Concept Generally Executive Summary Location Project Overview and Project Costs - Table 1 Project and Finance Plan Existing Uses - Map Showing Existing Uses and Conditions of Real Property in Zone No. 5 Proposed Projects - Map Showing Proposed Improvements to and Proposed Uses of that Property - Table 2 Changes to Municipal Ordinances Method of Relocation Zone No. 5 Finance Plan 1. List of Estimated Zone No. 5 Project Costs 2. Statement of Proposed Public Works 3. Economic Feasibility Study 4. Estimated Bonded Indebtedness 5. Time when Costs/Obligations Incurred 6. Financing, Expected Sources of Revenue - Table 3 7. Current Appraised Value of Property 8. Estimated Captured Value 9. Duration of Zone Appendix Schedule A Economic Feasibility Study/Information Schedule B Projected Assessed Taxable Valuations City of San Marcos Zone No. 5 Project Plan and Financing Plan 2 9 REV DRAFT March 20221 The TIRZ Concept Generally A tax increment reinvestment zone (“TIRZ”) is a financing tool created by the State Legislature to assist cities and counties in developing or redeveloping unproductive, underdeveloped or blighted areas. Cities may create a TIRZ where conditions exist that substantially impair an area’s sound growth and where development or enhancements financed by the TIRZ significantly enhance the value of all the taxable real property in a TIRZ and of general benefit to the city or county. Prior to creation, the statute requires preparation of a preliminary project plan and reinvestment zone financing plan outlining specific projects to address the existing conditions and the method and means to finance those projects. Upon creation, the total appraised value of real property located in a TIRZ is established for the year in which it was created. This is known as the base value. As new development occurs in a TIRZ, the value of real property increases. This additional value above the base value is known as the tax increment. Such tax increment is typically set aside to finance improvements within a TIRZ including public infrastructure. Once all projects are complete or after a defined period of time, a TIRZ is dissolved. During the life of a TIRZ, a city and other participating taxing jurisdictions collect tax revenue on the base value of a TIRZ as well as sales and use tax revenue generated by new development (unless a city or county agrees that sales tax and use revenue are also part of the increment). When a TIRZ is dissolved, a city and other participating taxing jurisdictions collect tax revenue on the tax increment value created by new development as well. Assessed Value (AV) ent New lo pm e ve Post-Project AV mD V f ro Incremental AV Total AV now se dA Incremental real belongs to all re a In c property tax taxing belongs to TIRZ to pay project costs districts in project area Base AV AV belongs to all taxing districts in project area 5-Year TIRZ Created Terminated City of San Marcos Zone No. 5 Project Plan and Financing Plan 3 10 REV DRAFT March 20221 Executive Summary The proposed City of San Marcos, Texas (the "City") Tax Increment Reinvestment Zone No. 5 ("Zone No. 5") consists of approximately 244 acres in the downtown core. The City has addressed one challenge, zoning standards that are inconsistent and contrary to creating a downtown environment, with the adoption of the San Marcos SmartCode (the "SmartCode") in 2011, putting in place a zoning that is predictable and focused on preserving downtown character while enabling pedestrian-oriented mixed-use development. In 2018, the City updated the Development Code and relabeled the downtown core as Character District 5 Downtown (CD-5D). Some of the other downtown challenges remain: a shortage of Class A office space, parking and pedestrian mobility, lack of sufficient lighting and downtown amenities and aesthetic features, and the condition of the streetscape and sidewalks in parts of downtown. One of the financial tools identified in the plan to help address these challenges is the creation of a tax increment reinvestment zone. Under this proposed plan, the City and Hays County (the "County") would participate equally in a tax increment reinvestment zone projected to generate approximately $15,831,450 over the current life of Zone No. 5. It is currently proposed that Zone No. 5 increment revenues will be allocated for parking, including acquisition of land, multi-modal transportation/mobility, sidewalks, safety considerations, improved lighting, beautification and streetscaping, annual downtown operations plan and overall enhancement of downtown that draws individuals downtown as allowed by Section 311.010(h) of the Texas Tax Code. In order to be eligible for Zone No. 5 tax increment revenues, projects must (a) support multi- modal transportation and mobility including sidewalks and downtown shuttle services (b) provide overall enhancement of the downtown area including but not limited to lighting, safety and other aesthetic features and/or (c) include acquisition of property for parking and other public priorities with the amounts allocated to include the required operation and maintenance costs within Zone. No. 5. In addition, funds will be allocated annually for a downtown operations plan. The true value of this approach is that it powerfully leverages tax increment revenues for economic development beyond streetscape or maintenance improvements on a given block. The potential increase in tax base can help in supporting possible future job creation through business relocation to the downtown area along with growth of existing businesses which create jobs. This approach also will encourage the engagement of higher education and other potential research partners through the focus on technology and research, ultimately ensuring that the site will be developed to its highest and best use. City of San Marcos Zone No. 5 Project Plan and Financing Plan 4 11 REV DRAFT March 20221 Location As proposed, Zone No. 5 extends from Texas State University to the North, to IH-35 to the South, CM Allen and McKie on the East and several blocks to the West. All of the land within proposed Zone No. 5 is part of the Charter District-5 Downtown (CD-5D) and currently includes a number of different types of uses including commercial, retail, restaurants, residential and offices within the boundaries. As provided in the April 1, 2010 economic analysis prepared for the City by Urban Advisors for the current Downtown Master Plan, the City's goal is to encourage a mix of new uses to accommodate additional housing, office space, retail, transportation, safety and parking facilities. Designation of Zone No. 5 assists the City in implementing the Downtown Master Plan and projects brought forth through future master plans. Project Overview and Project Costs 1. Infrastructure supporting cohesive redevelopment Zone No. 5 tax increment revenues shall be made available to facilitate investment in infrastructure or other improvements allowed by law that facilitate the following potential projects. This Project and Finance Plan will be amended as may be required by law to accommodate additional uses of the tax increment revenues within Zone No. 5: a. Projects that support multi-modal transportation and mobility including sidewalks and downtown shuttle services. b. Overall enhancement of the downtown area including but not limited to lighting, safety and other aesthetic features. c. Acquisition of property for parking and other public priorities with the amounts allocated to include the required operation and maintenance costs. Table 1 – Proposed Project Costs ITEM Proposed Activity ESTIMATED ZONE NO. 5 PROJECT COSTS 1 Multi-modal transportation/mobility $1,350,000 including sidewalks and shuttle services 2 Overall enhancement of downtown including $829,612 lighting, safety, and other aesthetic features 3 Acquisition of property for parking and other $2,000,000 public priorities and related operations and maintenance costs TOTAL ESTIMATED PROJECT COSTS: $4,179,612 Table 1 summarizes the currently anticipated Project Costs to be financed within Zone No. 5. City of San Marcos Zone No. 5 Project Plan and Financing Plan 5 12 REV DRAFT March 20221 2. Annual Allocation Breakdown Table 2 – Proposed Annual Costs ITEM Proposed Activity ESTIMATED ZONE NO. 5 PROJECT COSTS 1 3 Full-time staff to support downtown $170,000 operations plan 2 Regular cutback of vegetation $100,000 3 Sidewalk Cleaning contract $10,000 4 Supplies and equipment $5,000 5 Board approved specific projects Based on project cost City of San Marcos Zone No. 5 Project Plan and Financing Plan 6 13 REV DRAFT March 20221 Project and Finance Plan The purpose of Zone No. 5 is to (a) support multi-modal transportation and mobility including sidewalks and downtown shuttle services (b) provide overall enhancement of the downtown area including but not limited to lighting, safety and other aesthetic features and/or (c) include acquisition of property for parking and other public priorities with the amounts allocated to include the required operation and maintenance costs within Zone. No. 5. In addition, funds will be allocated annually for a downtown operations plan. Expenditures associated with the design and construction of Zone No. 5 Projects, as well as other specific project-related costs, will be funded by tax increment revenues derived from increases in property values resulting from the new development in Zone No. 5. The City may amend this Project and Finance Plan as may be necessary in accordance with law to accommodate the other redevelopment goals and projects outlined under "Project Overview and Project Costs." TEXAS TAX CODE SUBTITLE B. SPECIAL PROPERTY TAX PROVISIONS CHAPTER 311. TAX INCREMENT FINANCING ACT Sec. 311.011. PROJECT AND FINANCING PLANS (a) The board of directors of a reinvestment zone shall prepare and adopt a project plan and a reinvestment zone financing plan for the zone and submit the plans to the governing body of the municipality or county that designated the zone. (b) The project plan must include: (1) a description and map showing existing uses and conditions of real property in the zone and a map showing proposed uses of that property; (2) proposed changes of zoning ordinances, the master plan of the municipality, building codes, other municipal ordinances, and subdivision rules and regulations, if any, of the county, if applicable; (3) a list of estimated non-project costs; and (4) a statement of a method of relocating persons to be displaced, if any, as a result of implementing the plan. (c) The reinvestment zone financing plan must include: (1) a detailed list describing the estimated project costs of the zone, including administrative expenses; (2) a statement listing the proposed kind, number, and location of all proposed public works or public improvements to be financed by the zone; (3) a finding that the plan is economically feasible and an economic feasibility study; (4) the estimated amount of bonded indebtedness to be incurred; (5) the estimated time when related costs or monetary obligations are to be incurred; (6) a description of the methods of financing all estimated project costs and the expected sources of revenue to finance or pay project costs, including the percentage of tax increment to be derived from the property taxes of each taxing unit anticipated to contribute tax increment to the zone that levies taxes on real property in the zone; (7) the current total appraised value of taxable real property in the zone; (8) the estimated captured appraised value of the zone during each year of its existence; and (9) the duration of the zone. City of San Marcos Zone No. 5 Project Plan and Financing Plan 7 14 REV DRAFT March 20221 Existing Uses 1. Map showing existing uses and conditions of real property in Zone No. 5 Zone No. 5 consists of approximately 244 acres of commercial, retail, restaurants, residential and office uses within the City's designated Charter District 5 Downtown (CD-5D). Development and redevelopment of the property within Zone No. 5's boundaries is necessary because the area is undeveloped or underdeveloped and because of obsolete platting, deterioration of structures or site improvements, or other factors, arrests the sound growth of the City's downtown. The map on this page illustrates the current condition of the land. MAP SHOWING EXISTING USES AND CONDITIONS OF REAL PROPERTY IN BOUNDARIES OF ZONE NO. 5 City of San Marcos Zone No. 5 Project Plan and Financing Plan 8 15 REV DRAFT March 20221 City of San Marcos Zone No. 5 Project Plan and Financing Plan 9 16 REV DRAFT March 20221 PROPOSED PROJECTS 1. Table showing initial proposed improvements for the TIRZ area. Improvements proposed for Zone No. 5 are primarily related to: (a) support multi-modal transportation and mobility including sidewalks and downtown shuttle services (b) provide overall enhancement of the downtown area including but not limited to lighting, safety and other aesthetic features and/or (c) include acquisition of property for parking and other public priorities with the amounts allocated to include the required operation and maintenance costs within Zone. No. 5. Table 32 – PROPOSED PROJECTS Proposed Projects Justice Center Streetscape Improvement Project 100 Block E. Martin Luther King Drive, San Marcos, TX Alley Redevelopment Phase 1 Cheatham Street Flats Alley Paving Pedestrian Safety and Comfort Downtown Reconstruction/Capital Area Metropolitan Planning Organization Downtown Shuttle (One Year Pilot) Property Acquisition and Maintenance and Operations 2. Annual estimated allocation breakdown to support annual downtown operations plan as well as approved project plans submitted via application process. Changes to Municipal Ordinances 1. Proposed changes of zoning ordinances, the master plan of the municipality, building codes, other municipal ordinances, and subdivision rules and regulations, if any, of the county, if applicable; The City does not expect any changes to zoning ordinances, the master plan, building codes or other ordinances as a result of the designation of Zone No. 5. Estimated Non-Zone No. 5 Projects 2. A list of estimated Non-Zone No. 5 Projects The City expects to continue developing projects included in its capital improvement plan ("CIP") that benefit areas within Zone No. 5 from CIP funds. Method of Relocation 3. A statement of a method of relocating persons to be displaced as a result of implementing the plan. Designation of Zone No. 5 is not anticipated to cause relocation of any residents. City of San Marcos Zone No. 5 Project Plan and Financing Plan 10 17 REV DRAFT March 20221 Finance Plan List of Estimated Zone No. 5 Project Costs 1. A detailed list describing the estimated Project Costs of Zone No. 5, including administrative expenses Tables 1 and 2 itemizes the estimated Zone No. 5 Project Costs. Currently tThere are now administrative expenses estimated to be incurred over the life of Zone No. 5for this TIRZ. Statement of Proposed Public Works 2. A statement listing the kind, number, and location of all proposed public works or public improvements in Zone No. 5 The improvements that Zone No. 5 is designed to facilitate will be located throughout Zone No. 5. These improvements will assist with the development and redevelopment of Zone No. 5. The Map of Project Boundaries shown on the cover page hereof illustrates the location of the proposed improvements. Economic Feasibility Study/Information 3. An Economic Feasibility Study/Information In connection with the proposed development of the property within Zone No. 5 the City has previously commissioned studies outlining the goals and feasibility of the redevelopment of Zone No. 5 CD-5D as set forth in Schedule A. This Finance Plan is economically feasible since all Project Costs are paid only from tax increment revenues as they become available. Estimated Bonded Indebtedness 4. The estimated bonded indebtedness to be incurred The City currently anticipates paying Project Costs or reimbursing a developer for qualified Project Costs solely from tax increment revenues on an annual basis. No bond indebtedness will be incurred for Zone No. 5. Time when Costs/Obligations Incurred 5. The time when costs or monetary obligations are to be incurred When payment of costs or reimbursements of costs are to be made is a function of the availability of Zone No. 5 tax increment revenues. Schedule B is a projection of tax increment revenues which are available and expected to be available in the future to pay or reimburse Zone No. 5 Project Costs. City of San Marcos Zone No. 5 Project Plan and Financing Plan 11 18 REV DRAFT March 20221 Financing, Expected Sources of Revenue 6. A description of the methods of financing all estimated project costs and the expected sources of revenue to finance or pay Project Costs, including the percentage of tax increment to be derived from the property taxes of each taxing unit that levies taxes on real property in Zone No. 5. Methods of Financing. The Project Costs will be paid directly for site improvements for certain Zone No. 5 Project Costs. Project Costs will be paid solely from tax increment revenues of Zone No. 5 as they are realized by Zone No. 5. Sources of Tax Increment Revenue. The tax increment revenue necessary to pay the Zone No. 5 Project Costs is expected to come from increased property values in Zone No. 5. Schedule B displays the projected assessed valuations resulting from increases in value. These new tax increment revenues will be used to pay for Zone No. 5 Project Costs. This Plan is based on a contribution rate (and current tax rates which are subject to change) shown from the City and County. Table 3 Participating Jurisdictions Taxing Jurisdiction FY20221 (1) % Dedicated City of San Marcos $0.59306030/$100 25% Hays County $0.3924/$100 25% (1) 2020 2022 Tax Rate for purposes of illustration only. Tax Rate will be levied from year to year by the City and County, respectively, and will vary. (2) The total tax rate does not include the Road and Bridge rate. Current Appraised Value of Property 7. Current Total Appraised Value of Property in Zone No. 5 The total current appraised value within Zone No. 5 as of November, 2020 is $348,627,389. Estimated Captured Value 8. Estimated Captured Value of Zone No. 5 in Each Year of Existence The estimated captured appraised value of Zone No. 5 during each year of its existence is shown on Schedule B - Projected Assessed Valuation. Duration of Zone 9. Duration of Zone The duration of Zone No. 5 was is currently through December 31, 2027. Zone No. 5 took effect on the date it was created, being December 14, 2011. The City Council established January 1, 2011 as the base year of Zone No. 5. The term of Zone No. 5 has been extended and is currently scheduled to terminate on December 31, 2027. City of San Marcos Zone No. 5 Project Plan and Financing Plan 12 19 REV DRAFT March 20221 Schedule A Economic Feasibility Study/Information Schedule B Projected Assessed Valuations City of San Marcos Zone No. 5 Project Plan and Financing Plan 13 20 REV DRAFT March 20221 Annual Cumulative Total Value Increase Increase Total Revenue Revenue Tax Year Valuation From Base Year Percentage City Tax County Tax Available Available 2012 Actual 70% $ 105,083,437 $ 899,281 0.86% $ 5,795 $ 4,642 $ 10,437 $ 10,437 2013 Actual 70% $ 116,524,339 $ 12,356,933 10.9% $ 43,472 $ 34,962 $ 78,434 $ 88,871 2014 Actual 70% $ 143,130,508 $ 41,268,182 22.8% $ 140,785 $ 116,509 $ 257,294 $ 346,165 2015 Actual 70% $ 145,033,604 $ 42,341,838 1.3% $ 149,771 $ 119,571 $ 269,342 $ 615,507 2016 Actual 70% $ 151,017,107 $ 48,375,011 4.1% $ 173,695 $ 121,378 $ 295,073 $ 910,580 2017 Actual 70% $ 190,650,978 $ 86,366,376 26.2% $ 368,718 $ 240,973 $ 609,691 $ 1,520,271 2018 Actual 70% $ 226,246,103 $ 119,056,967 18.7% $ 509,532 $ 310,695 $ 820,227 $ 2,340,498 2019 Actual 70% $ 247,526,912 $ 140,337,776 9.4% $ 616,057 $ 377,120 $ 993,177 $ 3,333,675 2020 Actual 25% $ 341,869,987 $ 237,794,961 38.1% $ 352,531 $ 228,145 $ 580,676 $ 3,914,351 2021 Budget 25% $ 365,178,908 $ 261,103,882 6.8% $ 393,614 $ 251,011 $ 644,625 $ 4,558,976 2022 Estimated $ 383,437,853 $ 279,362,827 5.0% $ 1,179,190 $ 752,984 $ 1,932,175 $ 6,491,151 2023 Estimated $ 402,609,746 $ 298,534,720 5.0% $ 1,260,115 $ 805,646 $ 2,065,761 $ 8,556,911 2024 Estimated $ 422,740,233 $ 318,665,207 5.0% $ 1,345,086 $ 860,940 $ 2,206,026 $ 10,762,937 2025 Estimated $ 443,877,245 $ 339,802,219 5.0% $ 1,434,305 $ 918,999 $ 2,353,304 $ 13,116,241 2026 Estimated $ 466,071,107 $ 361,996,081 5.0% $ 1,527,985 $ 979,961 $ 2,507,947 $ 15,624,188 Assumptions: Estimated Years City Tax Rate $0.59306030 City of San Marcos Zone No. 5 Project Plan and Financing Plan 14 21 REV DRAFT March 20221 County Tax Rate $0.3924 City of San Marcos Zone No. 5 Project Plan and Financing Plan 15 22  INSTRUCTIONS City of San Marcos, Texas TIRZ#5 Application SUBMISSION: One electronic copy of the TIRZ#5 Application, and all attachments must be emailed to XXXX@sanmarcostx.gov. All questions on the Application must be answered. A separate Application, and specific attachments MUST be submitted for each project for which funding is requested. Submitting a complete application does not guarantee that your request will be funded. Funding allocations are decided by the TIRZ#5 Board, and, if necessary based on amount, by City Council. FUNDING REQUIREMENTS: 1. Funding must be spent on the project that was approved. Proof of expenditures will be required. 2. The project for which funding is requested must support those areas in downtown San Marcos as outlined in the City’s TIRZ#5 Project and Financing Plan. a. Support multi-modal transportation and mobility including sidewalks, downtown shuttle services b. Enhancement of downtown area including lighting, safety and other aesthetic features c. Acquisition of property for parking and other public priorities and related operations and maintenance costs 3. Project must not have been started more than three months prior to applying. 4. Applications will be brought to TIRZ#5 Board for consideration two times per year with consideration of special meeting for time sensitive projects. QUESTIONS Please contact Anna Miranda, Interim Finance Director, 512-393-8126 or asmiranda@sanmarcostx.gov. Email is preferred. Page 1 of 3 23  deadline. City of San Marcos TIRZ#5 DOWNTOWN FUNDING APPLICATION Date: ____________ Applicant Name/Department : Address: City, State & Zip: Contact Person: Title: E-Mail Address: Website: Phone: Fax: Has applicant ever received TIRZ#5 funds previously _______ Has project been started? ______ Completed ______ Project Title: ____________ Amount of Funds Requested: ___Actual _____Estimate Property Support multi- acquisition for TIRZ#5 Criteria: (check modal Enhancement of parking and other one) transportation downtown area public priorities Briefly describe the proposed project. Be sure and include how it qualifies for funding, timeline, project location, project budget or actual costs, how it would benefit downtown, for departments, why this funding and not funded with other sources, for agencies, include how full project being financed, and any additional information to support funding the project. Attach as backup documents to support the plan (i.e. cost estimates, pictures). Page 2 of 3 24 CERTIFICATION: I hereby certify that the information contained in the application is true and correct to the best of my knowledge. Submitted By: Signature of Applicant Date Printed Name of Applicant Approval ________ or Denial _______ at TIRZ#5 Board meeting on ___________ : Page 3 of 3 25