Jul 27, 2026 Tax Increment Reinvestment Zone (TIRZ) No. 1

[1. Open Meeting.]

[ CONSENT AGENDA: ACTION]

[00:01:05]

AUDIENCE PASSES YOU, PASSES UNANIMOUSLY. YEAH, I MEAN THAT. I TAKE THAT ITEM FOR REGULAR

[4. Receive Update on Current Projects, Agreements, Developments in Tax Increment Reinvestment Zone (TIRZ) No. 1 and Project and Financing Plan for TIRZ.]

THAT COVERS A GOOD PORTION OF REALLY THE CENTRAL PORTION OF LEANDER. THE ORIGINAL PERFORMANCE FOR THAT SECTION REALLY HAD CONTEMPLATED BY THE MATURITY OF THE TOURS, ABOUT A $1.78 BILLION WORTH OF VALUATION, AND HAD LOOKED AT THROUGH VARIOUS ACTIONS THAT HAD HAPPENED, REALLY FROM 2006 THROUGH RIGHT AROUND 2020 OR SO, ROUGHLY ABOUT 66.7 BILLION OR MILLION DOLLARS WORTH OF PROJECT ALLOCATED FUNDS. SO THE WAY THE TOURS WORKS, WE CREATE THE ZONE. WE HAVE A TAX INCREMENT COMPONENT OF 50% OF THE PROPERTY TAX, WHICH IS THEN ELIGIBLE TO BE ALLOCATED TO QUALIFYING PROJECTS PURSUANT TO THE THE STATUTE, THE PROJECTS THAT WE FUNDED THROUGH THE TOURIST PROJECT ALLOCATIONS WERE ROADWAY DRAINAGE, WATER, WASTEWATER. AND THEN THERE'S SOME ADDITIONAL UTILITY REIMBURSEMENTS FOR PROJECTS SPECIFICALLY FOR, I BELIEVE, THE PROJECT THAT'S THERE THROUGH THE FORMATION OR AFTER THE FORMATION WE HAVE ENTERED INTO, LET'S SEE, ONE, TWO, THREE, FOUR, FIVE, SIX, SEVEN, EIGHT, NINE, TEN. THERE'S TEN PROJECTS. I GUESS, ALLOCATIONS THAT HAVE BEEN PROVIDED FOR THROUGH THE TOURS. THE RB 270, WHICH REALLY WAS, I THINK ONE OF THE FIRST ONES, WHICH WAS REALLY ESTABLISHED IN 2011. THAT PROJECT HAS BEEN PAID. TBI HAS HAD FINAL PAYMENTS. THERE'S NOTHING LEFT AND OUTSTANDING ON THAT ONE. WILLIAMSON COUNTY THERE WAS 4.7 MILLION OF REIMBURSEMENT FOR IMPROVEMENTS TO SAN GABRIEL ROAD. WE RESOLVED AND FINISHED UP PAYMENTS ON THAT, I THINK LAST FISCAL YEAR. CITY OF LANDER HAS TWO PROJECTS. THERE'S A WATER PROJECT, AND THEN THERE'S SOME ADDITIONAL DRAINAGE AND ROADWAY FUNDS AND TWO CITY OF LEANDER PROJECTS. SO WE JUST ARE RECEIVING PAYMENTS ON THOSE. THIS LAST FISCAL YEAR, THE CRESCENT PROJECT IS NEARING COMPLETION. THERE'S $680,000 LEFT PROJECTS ON THAT ONE. OAK CREEK HAS BEEN PAID. SAINT DAVID'S HOSPITAL HAS OUTSTANDING BALANCE, BUT NOTHING HAS BEEN BROUGHT FORWARD ON THAT PROJECT. SO WE'LL BE CLOSING THAT PROJECT OUT AS WELL. SO AND THEN MR. NAKAMURA HAS A PROJECT BALANCE OF ABOUT $680,000, I THINK, ON THAT ONE AS WELL. AND WE'RE ANTICIPATING THAT THAT PROJECT WILL BE PAID AND CLOSED OUT IN 2032. SO THAT'S A LITTLE BIT OF THE HISTORY THAT'S THERE. I'D LIKE TO TURN IT OVER TO RANDALL TO KIND OF WALK THROUGH PROJECT ACTIVITY AND GIVE US A SUMMARY. ALL RIGHT. GOOD MORNING EVERYONE. RANDALL MALEK, ECONOMIC DEVELOPMENT DIRECTOR. IN YOUR PACKET, THERE SHOULD BE

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LC LEANDER IS IS HERE. AND THEN THE HERO PLAZA 71,000FT■!S HERE. WE DID HAVE A HERO A CROSSING RETAIL STRIP DEVELOPMENT HERE AND THEN JUST COMPLETED A 400 ZERO SQUARE FOOT MEDICAL OFFICE BUILDING HERE JUST INSIDE THE THE TERRACE OFF OF BROAD STREET. A FEW OTHER UPDATES ENDEAVOR YOU CAN'T SEE ON THIS MAP, BUT ENDEAVOR HAS KICKED OFF ITS FIRST PHASE OF DEVELOPMENT IN IN NORTH LINE, AND THAT'S A LITTLE OVER 600 ZERO SQUARE FEET FOR THE FIRST FOUR BUILDINGS, WITH SOME MORE ON THE. ON THE WAY HERE ON SAN GABRIEL AND. 183 A AND WE DID HAVE .183 HAS DEVELOPED THEIR MEDICAL OFFICE AS WELL AS RETAIL. THAT'S UNDER CONSTRUCTION ALONG 183 A MESSINA IS ACTIVELY UNDER CONSTRUCTION HERE OFF OF 183 A AND TALPA, AS WELL AS SOME DEVELOPMENT JUST NORTH OF OF BRYSON. SO A GOOD AMOUNT OF ACTIVITY OCCURRING IN THE IN THE TOURS. ANY ANY QUESTIONS ON ANY OF THOSE THOSE DEVELOPMENTS.

SO THERE WAS AND I CAN'T REMEMBER WHEN IT WAS, BUT THERE WAS A POINT IN TIME THAT THE CITY, THE CITY COUNCIL SHRUNK THE APPLICABILITY OF THE SMART CODE OR WHATEVER WE CALLED IT BACK THEN. WHAT ROBIN, DO YOU REMEMBER WHEN THAT WAS AND. I BELIEVE IT WAS 2014, AND ARE ANY OF THE THE PROJECTS THAT RANDALL JUST MENTIONED? BECAUSE THIS DOESN'T SHOW THE BOUNDARIES OF THE SHRUNKEN CODE, DO ANY OF THOSE COMPLY WITH THAT? SO THE WHAT WE DID IS WE CHANGED THE CONVENTIONAL DEVELOPMENT SECTOR. SO THAT EXPANDED. SO IT WAS ALL STILL WITHIN THE AREA OF THE TOD. I KNOW LC HERO WAS NOT CHANGED. WHAT WERE THE OTHER ONES? HOME DEPOT WAS STILL IN THE CORE. WHAT OTHER PROJECTS DID YOU SAY? I THINK MESSINA COMMERCIAL IS NOT WITHIN THE CORE. THAT ONE WOULD HAVE BEEN APPLYING OUR CURRENT STANDARDS. ALSO. HERE, WAVE PLAZA WOULD FOLLOW THE TOD STANDARDS, SO ABOUT HALF OF THEM DO. HALF OF THEM DON'T.

PROBABLY. YEAH. THANK YOU. I GUESS THE QUESTION IS, I GUESS GOING BACK TO THE AMOUNT OF RETAIL DEVELOPMENT AND COMMERCIAL DEVELOPMENT WE'VE SEEN IN THE AREA, WE'VE SEEN

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DEVELOPMENT HAPPENING NEXT DOOR TO OTHER DEVELOPMENT, DOES THAT HELP DEVELOPMENT HAPPEN? SO WHEN ENDEAVOR BUILDS THEIR STUFF, IS THAT GOING TO ACTIVATE THE AREA NEXT TO IT? I THINK EACH EACH TIME DEVELOPMENT OCCURS, THEY'RE BRINGING ALONG INFRASTRUCTURE AS AS WELL. SO THAT THAT CERTAINLY ENHANCES THE, THE TRACKS NEARBY. I ANTICIPATE COMMERCIAL DEVELOPMENT TO CONTINUE INSIDE THE TOWERS BOUNDARY BOUNDARY MAP. I THINK ON ENDEAVOR, THEIR FIRST PHASE IS 60,000FT■!S. WE EXPECT THEM O CONTINUE SOUTH WITH SOME ADDITIONAL DEVELOPMENT BEFORE THEY REACH THE SITE. SO WITHIN THE WITHIN THE THE AREA IS OUR INFRASTRUCTURE. ARE THERE STILL INFRASTRUCTURE NEEDS THAT NEED TO BE COMPLETED IN ORDER OUTSIDE OF THE MAIN, LET'S SAY THE NORTH AREA THAT NEED TO BE COMPLETED IN ORDER TO TO ACTUALLY GET HIGHER VALUES, TO CREATE MORE, PROMOTE MORE VALUE IN THIS AREA FOR FUTURE TAX BENEFIT. YES, YES, THERE'S ABSOLUTELY SOME MORE INFRASTRUCTURE NEEDED INSIDE THE TO KIND OF TIE THE AREA TOGETHER A LITTLE TIGHTER AND GET BETTER FLOW AND EVERYTHING.

OKAY. THANK YOU. IN THE PURPOSE OF THIS, THIS MAP WAS TO KIND OF CLOSE THE GAP ON OUR LAST DISCUSSION. AND WE TALKED THROUGH THE VALUATION INCREASES THAT ARE OCCURRING. AND JUST WANTED TO GIVE A LITTLE BIT OF AN OVERSIGHT INTO WHAT'S WHAT'S DRIVING THAT. HISTORICALLY, WE'VE SEEN QUITE A BIT OF RESIDENTIAL DEVELOPMENT THAT YOU CAN SEE ON THE ON THE MAP, AND NOW IT'S FILLING IN WITH SOME COMMERCIAL DEVELOPMENT. AND. MR. IF I COULD KIND OF KIND OF AMPLIFY A LITTLE BIT ON YOUR OTHER QUESTION IN TERMS OF ADDITIONAL PROJECT NEEDS OR FACILITY NEEDS, ONE OF THE THINGS THAT THAT CAPMETRO IS WORKING ON IS THE TOD CONCEPT.

SO THEY'RE ANALYZING, I THINK, FIVE OF THEIR TRANSIT STATIONS AROUND THEIR THEIR SERVICE.

LEANDER WAS ONE OF THE TOP TWO TOD CONCEPTS THAT THEY IDENTIFIED. SO THEY'VE GOT A CONCEPT PLAN ON THAT. AND SO THAT WOULD BE LIKE GOING TO A TOD STYLE KIND OF VERTICALLY INTEGRATED TOD CONCEPT AT THE RAIL STATION. IN ADDITION TO THAT, THERE'S SOME ADDITIONAL ROADWAY LINKAGES WE NEED TO LOOK AT. FOR EXAMPLE, EAST STREET NEEDS TO CONNECT FROM 2043 ALL THE WAY UP THROUGH TO MUNICIPAL TO PROVIDE FOR FULL TRAFFIC CIRCULATION THAT WOULD GO OPEN UP THE EAST TOWN AREA, AS WELL AS KIND OF CONNECT BACK UP TO NORTHLINE. SO THOSE ARE SOME OF THE KEY THINGS THAT WE KIND OF, I THINK ARE EVOLVING OPPORTUNITIES AND EVOLVING NEEDS TO REALLY KIND OF LINK THE INFRASTRUCTURE TOGETHER THROUGH THE AREA. I DID HAVE A QUESTION. SO I KNOW WE'VE GOT TWO MAPS IN HERE. MAYBE YOU'RE GOING TO TALK ABOUT THIS FURTHER IN YOUR PRESENTATION. I THINK IF WE GO A FEW MORE PAGES FORWARD, THERE'S LIKE A SUBSET OF THE WHOLE AREA. AND CAN YOU EXPLAIN A LITTLE BIT ABOUT WHAT THAT IS AND HOW THAT'S USED IN THE DETERMINATIONS OF EVERYTHING? SO ON PAGE 19. I BELIEVE THAT'S A SUBSET. I BELIEVE THIS THIS MAP SIMPLY HIGHLIGHTS THE BOUNDARIES OF THE OF THE TOURISTS. AND HISTORICALLY, WHAT THOSE BLOCKS LOOKED, LOOKED LIKE. NOW THAT I'VE GOT IT, NOW THAT I THINK WE'RE CLOSE, IT'S EXACTLY THE SAME. JUST IT IS INTERESTING SEEING THE THE HISTORICAL IMAGERY AND SEEING WHAT'S DEVELOPED. YES. AND I WAS GOING TO SAY ON PAGE 43 OF YOUR PACKET, YOU'LL SEE A SCHEDULE THAT WAS REALLY, I THINK, PART OF THE PRELIMINARY PLAN FOR THE

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AND OUT OF THAT, ABOUT 61 MILLION OR SO HAD BEEN PROGRAMED. SO THERE'S FROM THIS PROFORMA, THERE'S ABOUT 5 MILLION OF PROJECT FUNDS THAT WERE THE ORIGINAL PROFORMA THAT HAD THAT REVENUE THAT THAT WERE NOT PROGRAMED INTO ANY OF THESE PROJECTS BECAUSE THE PROJECT FUNDING ALLOCATION REALLY HAD BEEN DONE ON A PROJECT BY PROJECT BASIS. SO PROJECTS CAME IN, THEY HAD ELIGIBLE EXPENDITURES, HERE'S WHAT THEY COST ESTIMATED WERE. AND THEN STEPS AND AGREEMENTS WERE ENTERED INTO ON A STEP BY STEP BASIS, PROJECT BY PROJECT BASIS, MOVING FORWARD. SO CAN YOU SPEAK A LITTLE BIT TO SO THE VALUATION, THE EXPECTATIONS AND KIND OF THE TIMING? BECAUSE ONE OF THE THINGS THAT WE DID IN JANUARY 17TH, 2019, WE APPROVED AN INCREASE OF THE PROJECT PLAN BUDGET BY 20% TO 11 MILLION, WHICH GOES BACK TO PROJECTIONS OF THE VALUATION OF THE AREA. RIGHT. SO SO IN ORDER TO DO THAT, THAT ACTUALLY WAS BY THE AGREEMENT BETWEEN THE COUNTY AND THE CITY ALLOWED FOR THAT. THAT WASN'T BASED ON PROJECTIONS OR ANYTHING. THAT WAS JUST IT ALLOWED CONTRACTUALLY TO INCREASE THAT BY 20% JUST BY VOTE OF THE BOARD. SO IT WASN'T BASED ON FUTURE VALUE OR ANYTHING LIKE THAT. IT WAS JUST AN AGREED UPON THING. BACK IN 2006. OKAY. SO SO I GUESS MY QUESTION IS, IS THAT SO THAT WAS AGREED ON. IS THIS SOMETHING THAT WE COME BACK TO LIKE EVERY SO MANY YEARS, OR IS IT SOMETHING THE AGREEMENT, AS FAR AS I AND I HAD OUR GENERAL COUNCIL REVIEW IT IN PAGES, HE OR SHE CAN CORRECT IT. IT WAS A ONE TIME ADJUSTMENT BASED UPON THE AGREEMENT, NOT, YOU KNOW, THERE'S AN INFLATION CLAUSE, BUT THE 20% WAS A ONE TIME.

OKAY. BUT GO AHEAD. AND WAS THAT A MAXIMUM ONE TIME? OKAY. SO THAT'S THE MAXIMUM LEVEL THEN PLUS SOME SORT OF INFLATIONARY I CAN'T REMEMBER WHAT THAT IS IT PLUS INFLATIONARY OR IS THAT A HARD MAX. I DON'T THAT I HAVE TO DEFER TO LEGAL TO READ THAT PART. YEAH. I WAS UNSURE WHEN READING THAT. COULD YOU REPEAT THE QUESTION PLEASE. THE ORIGINAL DOCUMENT, AS I UNDERSTOOD IT, ALLOWED FOR A 20% INCREASE JUST IN THE AGREEMENT. BUT THERE'S ALSO SOME SORT OF COST OF LIVING OR INFLATIONARY CONSTRUCTION. IS THAT ON TOP OF THAT 20% OR IS THE 20% OVER THE ORIGINAL THE MAXIMUM AMOUNT OR EXPENDITURES? SO THE 20% IS NOT IT DOES NOT SEEM TO BE TIED TO A SPECIFIC REQUIREMENT. IF THE BOARD AND THE CITY DESIRED TO INCREASE THE COST, THE PROJECT COSTS BASED ON A CPI INFLATIONARY.

THEN IT'S IN HERE. THE AGREEMENT SETS THE TOTAL COST OF CONSTRUCTING ALL THE PROJECTS EXCEED THE 2005 ESTIMATED COSTS. AND BY MORE THAN 20%. AND THAT'S BASED ON THE COST INDEX. SO IF YOU DO A REVIEW AND YOU DETERMINE THAT THE ESTIMATED COSTS ARE GOING TO BE INCREASED BY ACTUAL CONSTRUCTION AND PROJECTED COSTS BY MORE THAN BY THE CPI INFLATIONARY INDEX BY MORE THAN 20%, THEN THAT'S GOING TO REQUIRE A COMMISSIONER COURT VOTE TO APPROVE THAT. IT SEEMS TO IMPLY THAT THE INITIAL 20% COULD HAVE BEEN INCREASED ON THAT BASIS AS WELL. BUT THERE'S THE ABILITY TO IF IT'S GOING TO GO BEYOND 20%, YOU'VE GOT TO GET COMMISSIONER COURT TO APPROVE IT AS WELL. I MEAN, THERE WAS, YOU KNOW, AND THE ORIGINAL AGREEMENT JUST FOR BECAUSE I LITERALLY THINK I'M THE ONLY PERSON THAT WAS. I WASN'T EVEN ON THE COMMISSIONERS COURT WHEN THIS WAS VOTED ON. THERE WAS NO WRITTEN DOCUMENT WHEN THIS WAS VOTED ON BY THE CITY OR BY THE COUNTY, NOTHING. AND SO I TOOK OFFICE AND WE SPENT A NUMBER OF MONTHS TRYING TO PUT TOGETHER SOME SORT OF AGREEMENT. I, YOU KNOW, I THINK BARNEY WAS WORKING ON IT AT THE TIME, BUT SO IT WAS GOING BACK AND LOOKING AT NOTES AND TRYING TO COBBLE TOGETHER THINGS OF WHAT PEOPLE WHO WEREN'T IN THAT CHARITY MORE AGREED TO. AND I THINK, YOU KNOW, MY RECOLLECTION ON TRYING TO PIECE ALL THAT TOGETHER WAS KNOWING THAT COSTS WOULD ESCALATE. AND, AND OVER TIME, THE 20% WAS ON

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IT WAS JUST THE TOTAL NUMBER COULD INCREASE BY 20%. AND THEN BUT IF YOU I CAN'T REMEMBER WHICH PAGE IT'S ON, BUT THE ACTUAL, YOU KNOW, PROJECT PLAN LIST THAT WE'VE ALL LOOKED AT OVER THE YEARS HAD ESTIMATES IN CATEGORIES. AND THAT'S, I THINK WHERE PAGE IS TALKING ABOUT THE CPI COULD BE APPLIED TO THOSE THINGS. AND WE'VE SHIFTED THAT AROUND. BUT ANY OUR COUNCIL'S UNDER MY GENERAL COUNSEL'S UNDERSTANDING IS THAT THE ORIGINAL PROJECT PLAN PLUS 20% IS WITHIN THIS BOARD'S AND THE COUNCIL'S PURVIEW TO ACT UPON ANYTHING BEYOND THAT WOULD REQUIRE COMMISSIONERS COURT APPROVAL. I SUMMARIZE THAT. OKAY. SO I THINK ONE OF THE THINGS WE WANT TO DO, AND THE REASON IN CITY COUNCIL APPROVAL, NOT JUST COMMISSIONERS. YES, YES. SO I THINK ONE OF THE THINGS WE WANT TO DO, AND THE REASON WE'RE HAVING THIS DISCUSSION TODAY IS WE WANT TO ACTUALLY FORMALIZE HOW WE OPERATE IN THE TOURS AND WHAT ARE OUR RESPONSES TO DIFFERENT THINGS. SO IT'S NOT, YOU KNOW, AND WE ALL WANT TO BE GOOD PARTNERS IN EVERYTHING ON EVERYTHING, BUT WE HAVE TO COME TO SOME KIND OF UNDERSTANDING ABOUT WHAT CONTRACTUALLY WE'VE ALL AGREED TO AND HOW WE MOVE FORWARD IN THIS. AND MAYBE THAT HASN'T BEEN DONE BEFORE, OR IT'S BEEN LOOSEY GOOSEY. AND, YOU KNOW, THIS AREA WAS LIKE THE WILD WEST PROBABLY WHEN THIS I WASN'T HERE. IT WAS I WOULD LIKE TO SAY I WAS A YOUNG MAN, BUT I WASN'T. BUT BUT I THINK THAT'S ONE OF THE THINGS KIND OF TALKING THROUGH THIS, THE VALUATION, TALKING ABOUT HOW WE ADD STUFF TO THE PROJECT PLAN, HOW THEY GOT ADDED IN THE PAST, HOW WE ACTUALLY DEAL WITH EXCESS FUNDS, DIFFERENT THINGS LIKE THAT, PRIORITIZATION OF PROJECTS AND, AND THINGS. I THINK THAT'S ONE OF THE REASONS WE WANTED THIS HERE, BECAUSE IT DOES SEEM TO BE THERE'S A LOT OF KIND OF LIKE NOT CLEAR, EVEN THOUGH IT IS IN HERE BECAUSE WE HAVEN'T DONE ANYTHING REALLY IN RECENT YEARS, I WOULD SAY BESIDES UPDATE THE NORTH LINE AGREEMENT. IS THAT ACCURATE, COUNCIL COMMISSIONER? I'M NOT. YOU KIND OF LOST ME. I THE THE THE LAST CONTRACT THAT THIS AGREEMENT THAT THIS BOARD ENTERED INTO WAS IN I DON'T KNOW WHEN WAS NORTH LINE 2020, 2019? BUT 2018 AT THAT POINT IN TIME, THE EVERYBODY ON THE BOARD KIND OF UNDERSTOOD AND IT WAS SAID MULTIPLE, MULTIPLE TIMES. AND I KNOW YOU HEARD IT, THAT THIS WAS PROBABLY THAT THE LAST BIG DEAL, BECAUSE THAT WAS ALL THE PROJECT PLAN ACCOUNTED FOR AND THAT. YOU KNOW, SO I THINK THAT'S, OF COURSE, YOU KNOW, COVID HIT AND EVERYTHING KIND OF SLOWED DOWN, BUT IT'S IT'S NEVER BEEN A MISUNDERSTANDING ON THE COUNTY'S PART THAT THERE WAS A FINITE NUMBER ON THE PROJECT PLAN. UNLESS BOTH THE COUNTY AND THE CITY AGREED TO, TO CHANGE THAT. SO COULD YOU CAN YOU SPELL IT OUT A LITTLE MORE, A LITTLE MORE DIRECT FOR ME? SO THE THE WHATEVER PAGE IT'S ON THERE, NOT GO BACK TO THE ORIGINAL. IT'S ON THE TINY PRINT PAGE 36. RIGHT. THE PROJECT PLAN THAT WAS, WAS PUT FORWARD IN 2006. RIGHT? SO THAT NUMBER AND THEN THE EXPANDED VALUE OF 20% IS WHAT IT'S BEEN THE COUNTY'S UNDERSTANDING THAT WE HAD MONEY TO WORK WITH. SO WHEN THEY CREATED THE TOURS, THEY PUT TOGETHER A PROJECT PLAN. AND HERE WE ARE 20 YEARS LATER, THE TOURS IS GOING TO GO 25 YEARS. RIGHT. AND, AND YOU'RE SAYING THAT WHAT WE AGREED TO THEN IS WHAT IT IS.

I'M SAYING THAT'S MY OUR COUNCILS. AND, YOU KNOW, I MEAN, ANY KIND OF ECONOMIC DEVELOPMENT INCENTIVE HAS TO HAVE A, A LIST AND A FINITE, A FINITE NESS TO IT. AND THIS IS NO DIFFERENT THAN OTHER TOURS THAT THE COUNTY'S ENTERED INTO. THERE'S A LIST OF PROJECTS THAT YOU CAN DO. AND THEN. RIGHT. SO I DON'T UNDERSTAND WHY CERTAIN AREAS OF THE BOUNDARY, I DON'T, I, I'D HAVE TO GO BACK AND LOOK, BUT I DON'T THINK EVERYTHING IN THE BOUNDARY IS IN THE PROJECT PLAN. LIKE EVERY CORNER. NO, NO, NO, THERE'S ALL KINDS OF DEVELOPMENT THAT'S GOING TO HAPPEN. I'M JUST TALKING ABOUT THINGS THAT GET TOURS, FUNDS. THERE'S THERE'S CERTAINLY, YOU KNOW, IT WAS NEVER CONTEMPLATED THAT THAT THE HOPE WAS, IS THAT LOTS OF STUFF WOULD HAPPEN OUTSIDE OF GETTING REIMBURSEMENT FROM THE TOURS THAT NOT EVERY PROJECT WOULD.

BECAUSE, YOU KNOW, RANDALL KNOWS THIS BETTER THAN ANYBODY. BUT IN ECONOMIC DEVELOPMENT,

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AND THAT THAT WAS ORIGINALLY, I THINK, THE WHOLE CONCEPT BEHIND THE SMART CODE AND THE ADDITIONAL DEVELOPMENT RESTRICTIONS WAS IT WAS GOING TO BRING IN THOSE SPECIAL THINGS, AND THEN OTHER THINGS WOULD COME THAT WOULDN'T REQUIRE TOURS, REIMBURSEMENTS.

SO I'M GOING TO LET YOU GO AHEAD. ASK YOUR QUESTION, I GOTCHA. OKAY. YEAH. SO SO I THINK THAT BUT THIS IS KIND OF THE UNDERSTANDING. I THINK WE NEED THAT BECAUSE WHAT WE'RE I BELIEVE WE'RE GOING TO HAVE EXCESS FUNDS. AND THE QUESTION WOULD BE IS, CAN THOSE BE USED FOR INCREASING THE THE THE PROJECT PLAN AND CAN THEY BE USED IN THE TOURISM OR EXPAND WHAT WE'RE DOING AND TO GET MORE DEVELOPMENT IN THAT AREA WITH THE AGREEMENT BY THE COUNCIL AND THE COUNTY, BECAUSE THAT WOULD BE ABOVE AND BEYOND WHAT THE CURRENT AGREEMENT CONTEMPLATES. IF I COULD DRAW THOSE ATTENTION. PAGE 47. I THINK COMMISSIONER LONG'S POINT, I THINK, IS ADDRESSED THERE. IT'S WE HAVE A PROJECT SUMMARY PLAN AND ACTIONS THAT WERE TAKEN AND THAT TALKS ABOUT THE 20% ADJUSTMENT. SO THE ORIGINAL 66.7, THERE WAS A 20% ADJUSTMENT, WHICH TOOK IT TO 71.8 MILLION. AND THEN THAT'S WHERE WE HAVE PART OF THAT ADDITIONAL 5 MILLION OF NON PROGRAM PROJECT FUNDS, WHICH ARE A BALANCE FROM THAT ADJUSTMENT THAT WAS MADE BACK AT THAT TIME IN 2019. AND SO ANYTHING ABOVE AND BEYOND THAT, IF THERE'S ADDITIONAL, WOULD HAVE TO COME TO COUNCIL AND THE COMMISSIONERS COURT FOR RATIFICATION, FOR APPROVAL FOR ANY NEW PROJECT PLAN, AMENDMENTS BEYOND THIS. YEAH.

AND SO THERE'S THERE'S 5.1 MILLION AVAILABLE WITHIN THE CURRENT AGREEMENT. THAT'S PLUS OR MINUS. AND THEN THERE'S THAT ONE OTHER THAT ONE PARAGRAPH THAT FOLLOWS, THE ONE THAT TALKS ABOUT THE 20% INCREASE. AND IT TALKS ABOUT IF THERE'S AN ENHANCED LEVEL OF INVESTMENT, A PORTION OF A PORTION OF NEW PROJECT THAT WILL RESULT IN INCREASED LAND VALUES THAT ARE EQUAL OR GREATER THAN THOSE THAT WERE PROJECTED IN THE THE ZONE BASE PLAN THAT WERE WERE INITIALLY ADOPTED. THEN THAT PART OF THE NEW PROJECT COULD BE CONSIDERED FOR REIMBURSEMENT AS ADDITIONAL TAX INCREMENT, AS AN ADDITIONAL TAX INCREMENT PROJECT. IF EVEN IF IT'S NOT INCLUDED IN THE PROJECT PLAN. BUT THAT PROJECTION OF INCREASED VALUE HAS TO BE SUPPORTED BY A REPORT FROM AN INDEPENDENT THIRD PARTY PROFESSIONAL. SO THERE HAS TO BE A THIRD PARTY THAT LOOKS AT IT, GIVES A REPORT AND AND PROJECTS THAT THERE'S GOING TO BE AN INCREASED LAND VALUE THAT COULD BE FUNDED THROUGH THE TER. SO THERE'S THAT ADDITIONAL PROVISION IN THE AGREEMENT AS WELL. JUST TO. YEAH. I'D LIKE YOU TO GET WITH OUR COUNSEL ON THAT BECAUSE THEIR INTERPRETATION IS A LITTLE DIFFERENT THAN YOURS. AND I THINK WE NEED TO GET A FUNDAMENTAL UNDERSTANDING OF THAT, IS THAT THE ORIGINAL PLAN PLUS 20% WAS THE CAP. SO. OKAY. AND THAT'S THE THING I'M TALKING ABOUT. I THINK WE NEED TO FORMALIZE BECAUSE PART OF IT IS IF IT'S IN THE PLAN, IT DOESN'T GO TO THE COUNTY COMMISSIONERS, RIGHT? RIGHT. ONLY IF IT'S GOING TO BE ADDED TO THE PLAN. IT'S WHAT YOU'RE SAYING. IF IT'S GOING TO GO ABOVE, IF YOU'RE GOING TO IF YOU'RE GOING TO COMMIT OR USE THE FUNDS TO PAY FOR OR REIMBURSE A ONE OF THE PROJECT CATEGORIES THAT EXCEEDS THE PROJECT PLAN CAP AS IT CURRENTLY STANDS, WHICH IS BEING INCREASED BY 20%, THEN THAT WOULD REQUIRE COMMISSIONERS COURT APPROVAL. BUT IF IT'S WITHIN THAT AND IT'S IN THE PROJECT PLAN, IT JUST GOES THROUGH CITY COUNCIL, IT GOES TO THE BOARD AND THEN TO CITY COUNCIL, RIGHT? SO AS LONG AS WE'RE STAYING WITHIN THOSE PARAMETERS, IT'S BASICALLY THIS BOARD AND THE CITY COUNCIL. AND IF WE WANT TO INCREASE IT ABOVE THE AMOUNT, THAT'S YOUR THAT'S OUR UNDERSTANDING. YES. THAT IF IT GOES ABOVE THE 20%, THEN THE COMMISSIONERS COURT HAS TO APPROVE AS WELL. YEAH. AND THAT'S HOW ALL THE PROJECTS THAT WE'VE DONE SO FAR, NONE OF THEM HAVE GONE TO THE COMMISSIONERS COURT BECAUSE THEY'VE ALL BEEN WITHIN THE PLAN AND WITHIN THAT CAP. SO JUST FOR CLARIFICATION, I'M LOOKING AT PAGE 33 IN THE DOCUMENTS HERE. I DON'T KNOW IF THAT'S WHAT YOU'RE LOOKING AT.

I'M LOOKING I'M LOOKING AT THE JUST MY OWN. OKAY. I PULLED UP IT IT OKAY, I'M LOOKING AT SECTION TWO OF THE. WHAT IS IT? THE AMENDED TAX INCREMENT FINANCING AGREEMENT. SO I'M LOOKING AT SECTION TWO, THAT SUBPARAGRAPH C YOU'RE TALKING ABOUT FOUR C. IS THAT THE ONE YOU'RE TALKING ABOUT? YES, SIR. SO AS I READ IT IT SAYS NO COMMISSIONERS COURT APPROVAL IS

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IN THE LAST TWO YEARS, BETWEEN NOW AND 2031, THAT WE COULD ACTUALLY SEE THE THING REALLY JUMP A LOT AND, AND THINGS. AND SO IT'S IMPORTANT TO US TO MAKE SURE THAT, THAT, THAT THOSE FUNDS ARE AVAILABLE. AND ALSO, I THINK IT'S ALSO IMPORTANT THAT WE CAN SHOW VALUE TO THE COUNTY TO SHOW THEM THAT, HEY, IF YOU, IF YOU KIND OF AND I KNOW IT'S NOT NECESSARILY POPULAR WITH THE COUNTY, BUT WE WOULD LOVE FOR YOU TO STAY IN THE TOURS GOING PAST 2031 AND EXTEND IT SO THAT WE CAN CREATE SOME TREMENDOUS VALUE. WE FEEL THAT WE'VE EXCEEDED THE VALUE THAT WAS PROMISED, WHICH IS VERY. I FIND THAT VERY INTRIGUING BECAUSE THEY MUST THE NUMBERS MUST HAVE BEEN PRETTY LOW AT THAT TIME, CONSIDERING THE AMOUNT OF DEVELOPMENT THAT HAS HAPPENED IN THE AREA OR WHAT WAS REALLY EXPECTED. I THINK NOBODY EXPECTED THE LAND VALUES TO GO WHERE THEY WERE. I MEAN, IF YOU TAKE THE THE LAND VALUES OUT, THAT HAPPENED. CRAZY POST 2020 HERE. SO THAT'S, THAT'S REALLY WHAT'S DRIVING THE VALUE BECAUSE WE HAVEN'T ADDED ENOUGH TO THE PROPERTIES. BUT AT THE SAME TIME, WHEN YOU MAKE AGREEMENTS FOR 25, 20, 25 YEARS, THINGS CHANGE A LOT IN THOSE TIMES. AND WE REALLY CAN'T ANTICIPATE AND NOR COULD THE PEOPLE AT THE TIME WHAT WAS ACTUALLY GOING TO HAPPEN, JUST LIKE IN 2018 OR 2019, WHEN WE DID THE NORTHLINE PROJECT, WE HAD NO IDEA WHAT WAS GOING TO HAPPEN AND HOW IT WAS GOING TO FALL OUT. BUT WHEN WE LOOK AT IT TODAY, WE LOOK AT IT WITH A DIFFERENT LENS, AND GOING FORWARD, WE HAVE A DIFFERENT LENS ABOUT WHAT IS THE POTENTIAL AND WHAT WILL ACTUALLY COME OUT OF THAT. BUT WE ALSO HAVE OTHER AREAS THAT HAVE BEEN ACTIVATED THAT THAT COULD DRIVE SIGNIFICANT VALUE BECAUSE OF WHAT'S GOING ON IN THAT AREA. AND, AND I THINK THAT'S EXCITING. AND I THINK THAT'S WHY WE WANT CLARITY ON THIS, SO THAT WE CAN MAKE SURE THAT WE UNDERSTAND HOW WE AS A CITY CAN OPERATE WITH THAT GOING FORWARD. SO ANYBODY ELSE WANT TO TALK TO THE SERGEANT? SERGEANT? SO I'D LIKE TO REQUEST LIKE EVERY DEVELOPMENT, AS YOU MENTIONED, THE RETAIL COMMERCIAL OR THE OFFICE DEVELOPMENT OR MEDICAL OFFICES, IS THERE ANY WAY THEY ARE OUTLINED IN DETAIL TO GO OVER THEM? LIKE, WHAT ARE WHAT ARE THE DETAILS OF THE EACH PROJECT WE DO HERE? CAN I GET THAT QUESTION? JUST SO LIKE THE THE DEVELOPMENTS WHICH ARE GOING AROUND IN THE BOUNDARY AREA. SO ANY LIKE A MEDICAL OR ANY OTHER AREAS WHICH WE ARE DOING THE DEVELOPMENT. SO WE HAVE ANY DETAIL IN IN LINE DOCUMENTS OR ANYTHING TO GO OVER THEM. SO, SO KIND OF WHAT DO WE HAVE CONTRACTS OR EVERYTHING. I THINK THAT IN THE, IN THE LIST THAT DORIS SENT US, YEAH, THERE ARE ALL THESE DIFFERENT AGREEMENTS BECAUSE I THINK THERE'S FOR EACH ONE OF THESE, I WANT TO IF I UNDERSTAND YOUR QUESTION, I THINK WHAT RANDALL PRESENTED WAS NOT. THAT WAS JUST KIND OF WHAT'S GOING ON. IT'S NOT STUFF THAT WE'VE MADE CONTRACTS WITH OR IT'S CONTEMPLATED. I THINK IT WAS JUST AN UPDATE AS TO WHAT'S GOING ON. RIGHT. AND WHAT I CAN DO AT THE BY THE NEXT MEETING IS THE VERBAL UPDATE I PROVIDED. I CAN PUT THAT IN A WORD OR DOCUMENT THAT WE, WE GIVE. SO YOU CAN SEE EXACTLY WHAT THAT LOOKS LIKE. AND ACTUALLY, AND ACTUALLY DARA IS PUTTING A SCHEDULE TOGETHER IN CONJUNCTION WITH RANDALL. SHE'S ACTUALLY WORKING THROUGH DETAILS OF ALL THESE PROJECTS. SO WHETHER THEY'RE ELIGIBLE REIMBURSABLE PROJECTS OR OTHER PROJECTS WITHIN THE ZONE. OKAY, WE'RE GETTING Y'ALL A LIST, A COMPREHENSIVE LIST. MY QUESTION WAS ACTUALLY ACREAGE ZONINGS USES ALL THOSE DIFFERENT THINGS.

SO WE'RE WORKING ON THAT. SO YOU'LL GET A SCHEDULE FOR THAT. SO THAT'S WHAT I WANTED. THANK YOU. ANY OTHER QUESTIONS BEFORE WE MOVE ANY OTHER ANY OTHER PRESENTATION. OKAY. THIS IS A

[5. Review Budget for Fiscal Year 2026.]

[00:35:03]

SO THERE'S CERTAIN ELIGIBLE REIMBURSABLE COSTS. SO THEY SUBMIT VERIFICATION THAT THOSE WERE DONE AND THOSE VALUES. AND THEN WE TRY TO REIMBURSE THAT BACK FOR THOSE. OKAY. AND SO THAT WOULD COME OUT OF THE PROCEEDS THAT HAPPENED WITHIN THE 2031 DEADLINE. IS THAT HOW THAT WOULD WORK? CORRECT? YES. SO IT'D BE IT'D BE A OKAY. SO YEAH, THERE'S A QUESTION. AND SO. THE. OKAY, NO MORE QUESTIONS, SIR. AND I SHOULD, I SHOULD TAKE IT BACK WHEN YOU LOOK AT. SO THE TOURS AS CONSTRUCTED HAS A 2031 TERMINATION DATE. AND SO THAT MEANS FUNDS ARE COMING IN THROUGH THE 2031 TAX YEAR. SO THERE'S A FINAL PAYMENT AS A STRUCTURE WHICH WOULD BE 32. SO YOU'VE GOT FINAL FUNDS COMING IN ACTUALLY IN 2032. EVEN THOUGH 2031 IS THE TERMINATION DATE OF THE TOURS. SO THAT KIND OF GOES THROUGH. SO, SO WHEN WE PROJECT, BECAUSE I KNOW YOU'RE NOT JUST LOOKING AT THIS YEAR, YOU'RE KIND OF PROJECTING IF,

[00:40:02]

AS WE PAY OFF THINGS, WE WON'T HAVE TO PAY ANYTHING BECAUSE WE DON'T HAVE ANY THINGS IN THE PROJECT PLAN. CORRECT. OR ELIGIBLE REIMBURSEMENTS, I SHOULD SAY, WOULD BE THE BETTER TERM, RIGHT? YES. SO THE SO, YOU KNOW, AS IF YOU GO BACK TO THAT ORIGINAL SCHEDULE, THE MAX, I THINK A V THAT WAS CONTEMPLATED WAS THAT 1.78 BILLION. IF WE'RE SITTING RIGHT AROUND 2.2, 2.3 BILLION, THERE'S ROUGHLY A 400, $400 MILLION DIFFERENTIAL RIGHT NOW BASED ON JUST THE CITY'S TAX RATE OF OF RIGHT AROUND $0.42. THAT'S ROUGHLY ABOUT 1.7 $1.65 MILLION OF TAX REVENUE. HALF OF THAT WOULD BE RIGHT AROUND 825 TO 850. SO, FOR EXAMPLE, THAT 850 IS GOING TO COMPOUND YEAR OVER YEAR, ABOVE AND BEYOND WHAT WAS CONTEMPLATED IN THE ORIGINAL REVENUE STREAMS FOR THE TOURS. SO WE GO FROM 133 MILLION, FOR EXAMPLE, TO A SIGNIFICANTLY DIFFERENT NUMBER BASED ON WHAT'S ACTUALLY HAPPENING ON THE GROUND TODAY.

AND I GUESS THIS GOES BACK PREVIOUS DISCUSSIONS. I DON'T KNOW IF IT CAN BE BROUGHT UP BECAUSE THIS IS ABOUT A BUDGET, RIGHT? SO BUT TYPICALLY IN THESE KIND OF AGREEMENTS, WHEN YOU'RE SEEING SOMETHING LIKE THAT, YOU COULD GO BACK AND, AND WORK THROUGH A CONTRACT, MAKE AMENDMENTS AND THINGS LIKE THAT. IS THAT YOU HAVE THAT OPPORTUNITY TO DO THAT. AND SO THE QUESTION WOULD BE TO WHAT POINT CAN THIS BODY DO IT AS THIS BODY ACTING UNDER ITS OWN AUTHORITIES OR WHAT NEEDS TO COME BACK? SO I, I THINK THAT THERE'S THE POTENTIAL NEED TO DEFINITELY COME BACK, REEVALUATE IF YOU'VE GOT THESE REVENUES, WHAT DO THOSE LOOK LIKE? WHAT ARE OPPORTUNITIES FOR USE? AND THEN THAT'S DEFINITELY, I THINK IS A GOOD CONVERSATION FOR COUNCIL AND FOR THE COMMISSIONERS COURT TO DISCUSS WHAT THAT LOOKS LIKE.

AND IF THERE'S A DESIRE TO TRY TO REPROGRAM THOSE FOR ADDITIONAL PROJECT FUNDS. FOR SURE. I KNOW WE'VE TALKED ABOUT MAKING THIS A MONTHLY MEETING, SO WE'LL BE HAVING A MEETING HERE AT THE END OF AUGUST. RIGHT. AND SO ONE OF THE THINGS, IF YOU COULD COME BACK WITH A PROJECTION OF WHAT THE REVENUES LOOK LIKE BASED ON WHAT WE SEE AS THE PAYMENT SCHEDULE THAT WE HAVE, AND I THINK I THINK THAT'D BE VALUABLE TO ALL PARTIES TO KIND OF SIT DOWN AND UNDERSTAND WHAT WE'RE TALKING ABOUT AND SEE IF THE COUNTY, THE CITY ARE WILLING TO DISCUSS, YOU KNOW, KIND OF LOOKING AT THIS BASED ON WHAT OUR FINANCIAL OBJECTIVES LOOK LIKE ON THIS. YES, SIR. OKAY. WE CAN CERTAINLY DO THAT, MR. CHAIRMAN. THANK YOU. ANY OTHER QUESTIONS? THANK YOU. DISCUSSION ITEM ONLY. NO ACTION WILL BE TAKEN. WE ARE NOW GOING TO CONVENE INTO

[6. Convene into Executive Session pursuant to: Convene into executive session pursuant to Section 551.087, Texas Government Code to deliberate a financial or other incentive for The Northline PUD development.

Reconvene into open session to take any action as determined appropriate in the Board’s discretion regarding a financial or other incentive for The Northline PUD development.]

WE'LL ADJOURN AT. 951.

* This transcript was compiled from uncorrected Closed Captioning.