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HomeMy WebLinkAboutORD 2009-54 - Terminating Wolf Ranch TIRZOrdinance No. a 0001 �Sj • t y �; , !k FA1M%LJ'@K§@ 9 MN IVA W 2 y 4FA LkJJZ# I a LJ#]k I qw, hL i i *J ikk MAE pill 0 ki 1] 10 A'%21 I= &I ah VA LJ'[§JJ2L= OJ�01 PV.OVIDING� . WHEREAS, On December 19, 2003, after all required notices and hearings, and after review and consideration of the preliminary reinvestment zone project and financing plan, the City Council of the City of Georgetown passed and approved Ordinance No. 2003-90, which created a reinvestment zone, as authorized by the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code, as amended (the "Act") within the area of the City as described in Exhibit "A" attached hereto (the "Zone") and WHEREAS, Section 4 of Ordinance No. 2003-90 provides as follows: Section 4. Duration of the Zone. That the Zone shall take effect immediately upon the passage and approval of this Ordinance, and termination of the operation of the Zone shall occur on December 31, 2033, or at an earlier time designated by subsequent ordinance of the City Council in the event the City determines in its sole discretion that the Zone should be terminated due to insufficient private investment or other good cause, or at such time, subsequent to the time that all project costs, tax increment bonds, notes and other obligations of the Zone, and the interest thereon, have been paid in full. WHEREAS, the Zone was created to facilitate the possible purchase by the City of certain public improvements in accordance with Section 3.4.7 of that certain "Development Agreement with Forestville Associates, a Maryland General Partnership, regarding development of Wolf Ranch" dated September 11, 2003 (the "Agreement"), which provides as follows: 3.4.7 Option to Purchase or Refinance. The City agrees to consider purchasing the Public On - Site Improvements or refinancing its obligations under this Section when 53% of the 1% sales tax revenues from businesses on the Property plus any tax increments from the TIRZ (if any) equal or exceed 175% of the projected debt service on the proposed Public On -Site Improvements Obligations for three (3) consecutive City fiscal years after the Effective Date of this Agreement as determined by the City's financial advisors. Notwithstanding the foregoing, the City may consider purchasing any Public On -Site Improvements or refinancing the City's obligations under this Section as such other time as the City, in its sole discretion, deems reasonable. If the City exercises its option as allowed by this Section, interest accrual shall cease as of the date of payment to Simon of the outstanding balance due (i.e., the unpaid principal and any accrued but unpaid interest) of the Public On -Site Improvement costs, Terminating rlf Ranch TIRZ' Pagel • WHEREAS, Forestville Associates, a Maryland General Partnership, which is a wholly owned subsidiary of Simon Property Group ("Simon") has not reached the thresholds provided in the Agreement and is not likely to reach such thresholds in the near future; and WHEREAS, the City Council has determined that it is not in the City's best interest to purchase the Public On -Site Improvements from Simon, and that the purpose for which the Zone was created will not be fulfilled and the continuation of the Zone may have a negative impact on the City's tax rate; and WHEREAS, the Zone does not have any outstanding project costs, tax increment bonds or interest on any bonds and other obligations and the City Council desires to terminate the Zone and hereby set an effective date for termination of the Zone. CITY OF GEORGETOWN, Section 1. Findings. (a) That the facts and recitations contained in the preamble of this Ordinance are hereby found and declared to be true and correct and are adopted as part of this Ordinance for all purposes and (b) that this Ordinance is not inconsistent with the City's 2030 Comprehensive Plan, Section 2. Termination of the Zone. That the City, acting under the provisions of Chapter 311, Texas Tax Code, including Section 311.017(a)(1) does hereby terminate the designation of the reinvestment zone named the "Wolf Ranch Tax Increment Reinvestment Zone" over the area described in Exhibit "A" and depicted in the map attached hereto as Exhibit "B". The effective date for termination of the Zone is the date of this Ordinance and such termination is effective immediately. Section 3. 'Tax Increment Fund. That the City hereby terminates the Tax Increment Fund created for payment of any obligations or project costs of the Zone since no tax increment bonds or other obligations have been issued and any and all project costs have been paid in full. Section 4. Further Actions. That the City Council hereby authorizes the Board of Directors of the Zone to take such actions as may be necessary or desirable in order to carry out the terms and provisions of this Ordinance in connection with the termination of the Zone. Section 5. Severability. If any provision, section, subsection, sentence, clause or phrase of this Ordinance, or the application of same to any person to set circumstances, is for any reason held to be unconstitutional, void or invalid, the validity of the remaining provisions of this Ordinance or their application to other persons or set of circumstances shall not be affected thereby, it being the intent of the City Council in adopting this Ordinance that no portion hereof or regulations connected herein shall become inoperative or fail by reason of any unconstitutionality, voidness or invalidity of any portion hereof, and all provisions of this Ordinance are declared severable for that purpose. Ordinance No. - Terminating Wolf Ranch T Page 2 of 3 Section 6. Open Meetins. It is hereby found, determined and declared that a sufficient written notice of the date, hour, place and subject of the meeting of the City Council at which this Ordinance was adopted was posted at a place convenient and readily accessible at all times to the general public at the City Hall of the City for the time required by law preceding its meeting, as required by the Open Meetings Law, Texas Government Code, Ch. 551, and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter hereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. CONSIDERED, PASSEL) AND APPROVED ON FIRST READING by the City Council of Georgetown at a regular meeting on the_ day of S` c� �� � ; 2009, at which a quorum was present and for which due notice was given pursuant to Section 551.001, et. seq. of the Government Code, CONSIDERED, PASSEL) AND APPROVED ON SECOND AND FINAL, READING by the City Council of Georgetown at a regular meeting on the ¢ "~~ day of 2009 at which a quorum was present and for which due notice was given pursuant to ection 551.001, et. seq. of the Government Code, 0 ATTEST: APPROVED AS TO FORM: By: f /�ZT City Attorney Terminating •, Page of Ueorge U. Uarver, Mayor