§ 16-3.7. Reinvestment zone number two created.

(a)

Findings.

(1)

The facts and recitations contained in the preamble of the ordinance from which this section derives are hereby found and declared to be true and correct and are adopted as part of this section for all purposes.

(2)

The city council finds and declares that the proposed improvements in the zone will significantly enhance the value of all the taxable real property in the proposed zone and will be of general benefit to the city.

(3)

The city council finds the area within the zone meets the criteria for designation of a reinvestment zone and satisfies the requirement of Section 311.005 of the Act, in that the area in its present condition substantially impairs and arrests the sound growth of the city, retards the provision of housing accommodations and constitutes an economic liability and a detriment to the public health and safety because of (i) a substantial number of substandard, deteriorated, and deteriorating structures; (ii) the predominance of inadequate sidewalk and street layouts; (iii) faulty lot layout in relation to size, adequacy, accessibility, and usefulness; (iv) unsanitary and unsafe conditions; (v) the deterioration of site and other improvements; and (vi) conditions that endanger life and property by fire or other cause.

(4)

The city council finds and declares:

a.

The proposed zone is a contiguous geographic area located wholly within the corporate limits of the City of Irving;

b.

The total appraised value of taxable real property in the proposed zone and in existing reinvestment zones does not exceed fifteen (15) percent of the total appraised value of taxable real property in the city;

c.

Ten (10) percent or less of the property in the zone, excluding property that is publicly owned, is used for residential purposes (defined as any property occupied by a house with fewer than five (5) living units); and

d.

The development or redevelopment of the property in the proposed zone will not occur solely through private investment in the reasonably foreseeable future.

(b)

Designation of zone. The city council hereby designates the zone described in the boundary description and depicted in the map, both attached hereto as Exhibit "A" and made a part of the ordinance from which this section derives for all purposes, as a reinvestment zone pursuant to and in accordance with Texas Tax Code Chapter 311. This reinvestment zone shall be known as "Tax Increment Reinvestment Zone Number Two, City of Irving, Texas—Irving Boulevard."

(c)

Zone board of directors. A board of directors for the zone ("board") is hereby created. The board shall consist of thirteen (13) members who shall serve for terms of two (2) years each. Of these thirteen (13) members, each taxing unit other than the city that levies taxes on real property in the zone may, but is not required to, appoint one (1) member to the board. After each taxing unit other than the city designates either the name of the member that the taxing unit wishes to appoint or the fact that the taxing unit wishes to waive its right to appoint a member, the city council shall appoint whatever number of members are necessary to fill the remaining positions on the board. The mayor shall annually nominate and appoint, subject to city council approval, a member to serve as chair for a term of one (1) year beginning on the anniversary of the effective date of this section. The city council authorizes the board to elect from its members a vice chairman and such other officers as the board sees fit.

The board shall make recommendations to the city council concerning the administration, management, and operation of the zone. The board shall prepare and adopt a project plan and a reinvestment zone financing plan for the zone and submit such plans to the city council for its approval. Subject to approval of the city council, the board shall perform all duties imposed upon it by Texas Tax Code Chapter 311 and other applicable law as necessary and convenient to implement the project plan and reinvestment zone financing plan. Notwithstanding anything to the contrary herein, the board shall not be authorized to (i) issues bonds; (ii) impose taxes or fees; (iii) exercise the power of eminent domain, or (iv) give final approval to the zone's project plan and financing plan.

(d)

Term of zone. The zone shall take effect upon the adoption of this section and terminate on the earlier of (i) December 31, 2040, or an earlier termination date designated by an ordinance adopted after the effective date of this section or (ii) the date on which all project costs, tax increment bonds, and interest on those bonds have been paid in full.

(e)

Determination of tax increment base. The tax increment base for the zone, as defined by Section 311.012(c) of the Act, shall be the total appraised value of all real property in the zone taxable by a taxing unit for the year 2010, the year in which the zone was designated as a reinvestment zone.

(f)

Tax increment fund. A tax increment fund for the zone (the "TIF Fund") is hereby established. The TIF Fund may be divided into additional accounts and sub-accounts authorized by resolution of the city council. The TIF Fund shall consist of (i) the percentage of the tax increment, as defined by Section 311.012(a) of the Act, that each taxing unit which levies real property taxes in the zone, other than the city, has elected to dedicate to the TIF Fund under an agreement with the city authorized by Section 311.013(f) of the Act, plus (ii) sixty-five (65) percent of the city's maintenance and operating portion of the tax increment, as defined by Section 311.012(a) of the Act, subject to any binding agreement executed at any time by the city that pledges a portion of such tax increment or an amount of other legally available funds whose calculation is based on receipt of any portion of such tax increment. The TIF Fund shall be maintained in an account at the depository bank of the city and shall be secured in the manner prescribed by law for Texas cities. In addition, all revenues from (i) the sale of any obligations hereafter issued by the city and secured in whole or in part from the tax increments; (ii) revenues from the sale of any property acquired as part of a tax increment financing plan adopted by the board; and (iii) other revenues dedicated to and used in the zone shall be deposited into the TIF Fund. Prior to the termination of the zone, money shall be disbursed from the tax increment fund only to pay project costs, to satisfy the claims of holders of tax increments bonds or notes issued for the zone, or to pay obligations incurred pursuant to agreements entered into to implement the project plan and reinvestment zone financing plan and achieve their purpose.

(g)

Tax increment agreements. Subject to approval of the city council, the city manager and city attorney are hereby authorized to prepare tax increment agreements with taxing units that levy real property taxes in the zone.

(Ord. No. 2010-9229, §§ 1—7, 12-9-10)

Editor's note

Exhibits A and B of Ord. No. 2010-9229, adopted Dec. 9, 2010, are on file and available for inspection in office of the city secretary.