TIF agreement gets First Amendment
During its Aug. 29, 2019 meeting, the Forney TIF/TIRZ Board met to approve amendments and annual reports:
- Approved the First Amendment to Owner Reimbursement Agreement between Meadow Ridge Farms, the City of Forney and Reinvestment Zone Number One.
TIF Administrator Mr. Hawes addressed the board, stating this agreement reduces interest rate from 12% to 6%, will be extended 3 years to Dec. 2041, adding 200 acres, Reeder Rd added as project cost, TxDOT bridge: city was to get repaid first, now agree to get paid in parallel, keeping the 85% rate. Mr. Holler asked about existing structures on the new property; Mr. Hawes said it is included in the base value. Mr. Thatcher said once annexed, the value over what exists now will be taxed as part of the TIRZ. Mr. Hawes speculated the land is no longer AG, based on its value. When it's taken out of AG, the 5-year rollback will become the base value, the city will collect tax on that part. The county is not changing their agreement. Mr. Allen asked if the rate wasn't still high; Mr. Thatcher said was a lot of negotiation on the rate, this was palatable. Mr. Hawes said at 6%, the developer could get paid back, and the 85% participation rate helps the city.
- Approved the First Amended and Restated Project Plan and Reinvestment Zone Financing Plan which enlarges the TIRZ boundaries, extends the time-frame of the Zone and updates projects and project costs.
Mr. Hawes said this includes all the changes just approved. Mr. Hawes said the developer saw the need to negotiate; Mr. Thatcher said they also worked on Whaley Rd. and a sewer project, and maintenance along Gateway Blvd.
- Heard an update regarding projects in the TIRZ.
Mr. Ketteman said 57 residential permits for this year; finishing up on Gateway Pines; Goodyear should go vertical soon, slab been poured, Akron Way will be the road, which will eventually continue and turn to connect with 1641; a residential development could go in on E. side; EDC has had conversations about spec. commercial buildings, CBRE has sent them some leads; Reeder will be redone to align with the bridge.
- Adjourned at 1854.
Thursday, 2019, August 29