2006T61-Reinvestment
ORDINANCE NO.
06- T -61
ORDINANCE DESIGNATING THE SEDONA DEVELOPMENT AS A TAX INCREMENT
REINVESTMENT ZONE; DESCRIBING THE BOUNDARIES OF THE ZONE; CREATING
A BOARD OF DIRECTORS FOR THE ZONE; PROVIDING FOR AN EFFECTIVE DATE
AND A TERMINATION DATE FOR THE ZONE; NAMING THE ZONE
"REINVESTMENT ZONE NUMBER TWO, CITY OF SCHERTZ, TEXAS";
ESTABLISHING A TAX INCREMENT FUND; AND CONTAINING OTHER PROVISIONS
RELATED THERETO.
WHEREAS, the City Council (the "Council") of the City of Schertz, Texas (the "City")
desires to support improvement activities for the Sedona Development project (the "Project"), to be
funded in whole or in part through the creation of a Tax Increment Reinvestment Zone (the "Zone"),
as hereinafter more specifically defined and named, and with boundaries as hereinafter provided,
pursuant to the provisions of the Tax Increment Financing Act, Chapter 311, Texas Tax Code, as
amended (the "Act"); and
WHEREAS, the City received a petition for Zone designation by owners representing over
fifty percent (50%) of the appraised value of the land in the Zone, and the City agrees to designate
the Zone as a result of that petition; and
WHEREAS, the City desires to encourage community revitalization and infrastructure
improvements within the Project area; and
WHEREAS, the proposed public improvements for the area may include construction of a
wastewater plant, lift station, fire station/EMS facility, water storage, streets, sidewalks, drainage,
utilities, street lights, and other public improvements which may be provided for in a development
agreement to be considered by the Council at a later date; and
WHEREAS, pursuant to the Act, the City may designate a contiguous geographical area
within the City as a Zone if the area satisfies the requirements of certain sections of the Act; and
WHEREAS, on December 6, 2005, the Council adopted Resolution No. 05-R-20, expressing
its intent to create the Zone, and authorizing the City to (i) deliver notice of said intention to the
governing bodies of each taxing unit that levies real property taxes in the Zone (the "Taxing Units"),
including in the notice a description of the Zone, the tentative plans for development of the Zone,
and the estimated impact of the Zone on property values and tax revenues; (ii) set a date for a public
hearing and publish notice thereof; (iii) make presentations to certain Taxing Units; and (iv) request
each of the Taxing Units to appoint a representative to meet with City officials, and to call meetings
regarding the Zone; and
WHEREAS, pursuant to Section 3l1.003( e) of the Act and the direction of the Council, on
August 2, 2006, the City sent said written notice to the governing body of each Taxing Unit of the
City's intent to consider establishing a Tax Increment Reinvestment Zone, providing sixty (60) days
notice prior to the public hearing, as required by the Act; and
WHEREAS, pursuant to Section 3l1.003(b) of the Act, the City staff has (i) prepared a
Preliminary Reinvestment Zone Financing Plan (the "Preliminary Plan") for the Zone and (ii)
distributed a copy of the Preliminary Plan to the governing body of each Taxing Unit; and
45853638.2
- 1 -
WHEREAS, pursuant to Section 3l1.003(f) of the Act, the City made a formal presentation
to the governing body of Bexar County (the "County") on October 24,2006 and the governing body
of the Schertz-Cibolo-Universal City Independent School District (the "School District") on August
29,2006; and
WHEREAS, notice of the public hearing to be held on December 12, 2006, was duly
published in The Commercial Recorder in its issue dated November 30, 2006, in compliance with
Section 311.003( c) of the Act; and
WHEREAS, pursuant to Sections 311.003( c) and (d) of the Act, a public hearing was held on
December 12, 2006 in the City Council Chambers, Schertz City Hall to consider the creation of a
Zone for the Project and its benefits to the City and to property in the Zone; and
WHEREAS, the City intends to contribute all of the City's tax increment during the term of
the Zone to the fund to be established for the Zone, and the County and the San Antonio River
Authority ("SARA") have each expressed an interest in contributing some portion of their tax
increment to the Zone; and
WHEREAS, the Council hereby recognizes that there is no guarantee that the value of
property in the Zone will increase, that any increases in value are dependent upon many factors
which are not within the City's control, and that there is no guarantee of any tax increment, as that
term is defined in the Act; and
WHEREAS, it is hereby officially found and determined that the meeting at which this
Ordinance was passed was open to the public, and public notice of the time, place and purpose of
said meeting was given, all as required by Chapter 551, Texas Government Code, as amended;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS:
Section 1. Desilmatin~ the Area as a Reinvestment Zone. The area generally located north of
Ware Seguin Road, west of FM 1518, and south of Lower Seguin Road, commonly referred to as the
Sedona Development, with the boundaries as more specifically described in Section 2 below, and
officially assigned the name as designated in Section 5 below (which reinvestment zone so
described, named and designated is herein referred to as the "Zone"), is hereby designated as a Tax
Increment Reinvestment Zone under the Act.
Section 2. Descrintion of the Boundaries of the Reinvestment Zone. Pursuant to Section
311.004(a)(I) of the Act, attached hereto as Exhihit A. which is incorporated herein by reference for
all purposes as if copied herein verbatim, is a description of the boundaries of the Zone created
hereby, which consists of approximately 825 acres.
Section 3.
Creation and Comnosition of a Board of Directors for the Zone.
(a) In accordance with Section 311.004(a)(2) of the Act, there is hereby created a Board
of Directors for the Zone (the "Board"), with all the rights, powers and duties as provided by
the Act to such boards or by action of the Council. Pursuant to Section 311.0091(c) of the
Act, the Zone Board shall consist of eleven (11) members.
45853638.2
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(b) The City, the County, SARA, and any other Taxing Unit(s) contributing all or any
portion of their tax increment to the Zone shall collectively appoint a total of nine (9)
members to the Board, in proportion to their pro rata share of the total anticipated tax
increment. Persons appointed must meet the eligibility requirements of Section 311.0091(f)
of the Act to serve as members of the Boatd.
( c) In addition, the member of the State Senate in whose district the Zone is located is a
member of the Board, and the member of the State House of Representatives in whose
district the Zone is located is a member of the Board, except that either may designate
another individual to serve in the member's place at the pleasure of the member. If the Zone
is located in more than one Senate or House district, the Senator or Representative whose
district is the larger portion of the Zone shall be appointed to the Board.
(d) Members of the Board are appointed for terms of two (2) years. Upon expiration of
their respective terms of office, replacements to the Board shall be appointed for a two (2)
year term, in the same manner as originally appointed. Vacancies on the Board shall be filled
by the authority that made the original appointment, making such appointment for the
remainder of the unexpired term.
~ection 4. Effective Date and Termioation Date of the Zone. Pursuant to Section
311.004(a)(3) of the Act, the Zone shall take effect immediately upon the passage of this Ordinance
and, in accordance with Section 311.004(a)(4) of the Act, continue until its termination date of
December 31, 2027 (the "Termination Date"), unless otherwise terminated earlier as a result of
payment in full of all project costs, and the interest accrued on those costs, or as authorized or
permitted by law.
~ection S., Assi...1in.. a Name to the Zone. In accordance with Section 311.004(a)(5) of the
Act, the Zone created hereby is assigned the name of "REINVESTMENT ZONE NUMBER TWO,
CITY OF SCHERTZ, TEXAS."
.section 6., Tax Increment Base. The tax increment base for the Zone is the total appraised
value of all real property taxable by the City and located in the Zone, determined as of January I,
2006, the year in which the Zone was designated as a Tax Increment Reinvestment Zone (the "Tax
Increment Base").
Section 7., Establishment of a Tax Increment Fund. Pursuant to Section 311.004(a)(6) of the
Act, there is hereby created and established in the depository bank of the City, a fund to be called the
"REINVESTMENT ZONE NUMBER TWO, CITY OF SCHERTZ, TEXAS TAX INCREMENT
FUND" (the "Tax Increment Fund"). Money in the Tax Increment Fund, from increment collected
above the Tax Increment Base from whatever source, may be disbursed from the Tax Increment
Fund, invested, and paid as permitted by the Act or by any agreements entered into pursuant to the
Act, or as otherwise authorized by law.
Section 8.
Find.in~. The City hereby finds and declares that:
(a) improvements in the Zone will significantly enhance the value of all the taxable real
property in the Zone and will be of general benefit to the City; and
(b) the area within the Zone meets the requirements of Section 311.003(a) of the Act,
being that:
45853638.2 _ 3 _
(1) the Zone is a contiguous geographical area located wholly within the
,"v'pv,,,,e limits of the City; and
(2) redevelopment within the Zone would not occur solely through private
investment in the reasonably foreseeable future; and
( c) the area within the Zone meets the requirements of Section 311.005 of the Act, being
that the Zone area:
(1) substantially arrests or impairs the sound growth of the City, retards the
provision of housing accommodations, constitutes an economic or social liability and
is a menace to the public health, safety, morals, or welfare in its present condition and
use; or
(2) is predominantly open, and because of obsolete platting, deterioration of
structures or site improvements, or other factors, substantially impairs or arrests the
sound growth of the City; and
(d) the area within the Zone meets the requirements of Section 311.006 of the Act, being
that:
(1) the total appraised value of the taxable real property in the Zone and in
existing reinvestment zones does not exceed fifteen percent (15%) of the total
appraised value of taxable real property in the City and industrial districts created by
the City; and
(2) the Zone does not contain more than fifteen percent (15%) of the total
appraised value of real property taxable by the County or by the School District; and
(e) the area within the Zone is "unproductive, underdeveloped, or blighted" within the
meaning of article VIII, section l-g(b) of the Texas Constitution.
Section 9. Desil>Dation of a Section 311.00S(a)(S) Zon~. The Zone is designated pursuant to
Section 311.005(a)(5) of the Act.
I'ection 10. IncornorBtion of Recitals. The Council hereby finds that the statements set forth in
the recitals of this Ordinance are true and correct, and the Council hereby incv,pv''';es such recitals
as a part of this Ordinance.
Section 11. Severability. If any provision of this Ordinance or the application thereof to any
circumstance shall be held to be invalid, the remainder of this Ordinance and the application thereof
to other circumstances shall nevertheless be valid, as if such invalid provision had never appeared
herein, and this governing body hereby declares that this Ordinance would have been enacted
without such invalid provision.
Section 12. Effective Date. This Ordinance shall take effect upon the date of second and final
reading and any publication required by law.
4585363S,2
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2006
ATTEST:
PASSED AND APPROVED on first reading this the 12th day of December, 2006
PASS, APPROVED, AND ADOPTED on second reading this the (q'IfJ day of December,
45853638,2
CITY~ZTZ
. ~ ~-?-'
Mayor
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45853638,2
EXHmIT A
Descriotion of Zone
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II8IG _ ACR!8 OF lAND MORE OR LEllS. COMPRI8ED OF _700 ACRES OF lAND
SI'lUI.1B) tllHI! _ DIAZ 8IIRVIh' NO. ee. AII8'IRAC'r 187. COUNIY BLOCK -. CITY OF
,,__... 8I!XAR COUNIY. 1I!XAS AND IlEIIlG our OFlH08E 1'RAC11I CIlUED 1-46.427 ACRES
~ UlJ'_',:;. JNVOLUMEU4l2.PAGeURI!AL".,.,.. " 01'" ,~....'M.o...OFBEXARCOUNTY.lEXA8
_100.0II8 ACRE lRACI' DI!I8CRIIIED IN WWIE 1Ul1l1, _ 341 REW: ,...... ...,. RllCORIlll
OF IIElCMCOUHTY;TI!lCA8, CClNVEYED 10 ~~....,.~ 1518L1d., ANDiIlI! REMAINIlEROF 1HOSE
lRACI8 CAl.LED 14l1.'/7aACRESOEII!lRIIlEO tllICI.I/M& 83GO, PAIlE GlIRIW. .'.,.,"'" ,:
ASlORD8 OFIlEXAR COUNIY. TelIA8,ANDIUllIIACRIl8 _"",~,. :i'" IIJVCI.IlM5 f!4tl.-
07.. RfAL.' .'10..1' ..;1,... ,',',.:.... .'... ,." OF BEXAR COUNTY, lDA8.ANDALL OF TtfE. nIOSITRMml
CN.L&D1O.OOACRE8 ~..va..UIE &11.... PAGE 1721 RIAL .".......,..:1...... ,,', .'.:,;.....1...,; OF
IIElCMCOl.WTY. TI!lCA8, AND 1l1.lJC) ACRES ~""...........IN WUJME 3CI82, PAGE 1721 RI1AL
" .,... ~.'.. .-........ OF IIElWl COUNTY, TI!lCA8, lILL OFWMClI COIN6'tED lOfIICIWU)_
JNIICeKENP. ANIlALSO IlElNQ COl" '. ".,. OF 111Jl1l3AC11l!8 OF lAND Bm.II\lED IN THl!E.R.
EVANS 8IJRVEY NO. 80, AIl8TRACT 21'- COUNIY IllOCKS08O, CITY OF. SOHERT2._
COUNIY. lIXM,_llIlINGourOF_CERfAll41_ ACRE 1'RAC11IDElIC 'IN
VllUIE 1887. PAGE 94.ANIlVDLUIli!4331. PAIlE lIO$llEEO RECORD8 OF 1IElWl. COUNTY,
TEXABALl OFWHlQl CONIIE'IED 10 IIEI.IlERr ANDBOBBE HlLLERT. ANDN.SO _ .
COlI'f ',OF 77.143 ACIIl!8OF lAND lII1UAlED IIlHE Gl!IIONfMO LEAL 8lJRVEY NO. 7J,
AIIIf1'RACT424. COUNTY BLOCK ~~.::- ""'... 8I!XAR COUNTY, TEXAII AND BEING ALL
OF AtlJ38ACRElRACI'OF lAND AS IIO.UIIE -. PAGE '*REAL, "'",..... "
RECCRltOF IlEXAR COUNTY. TEXAIIAND '/8.AaliAClll!8 01' lANIlOUT OF" CIlUED7T.1tACflE
TMCrOF lANIlllUCRllEDlNWlLIJII!.f721. PNlI! 1088 RIW....,^.,..... , "i"."..., OF BEllAR
COUNtY, 1I!IWlllLL OFWHlCHCONVEVl!DlO IIEI.IlERl'HlI1.ERr. AND IIElNG MaRl!
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45853638.2
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45853638.2
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45853638.2
DMtM7JDS
JabNo.04OIl7
81.1111_
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STATE OF TEXAS
'1;:.. ,;_ ..,....~.... jJ.
AJ,..or..,;,-.i1FIf1nt
the Sedona Oe\'e1cpmerf._ a
rex Inc~ment,R8 ',,'I' !l"
Zona; deocrll>inlt th.~
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Before me, the undersigned authority, on this day personally appeared Helen 1. l~~
by me duly sworn, says on oath that she is Publisher of the Commercial Recorder, ~,ll!J,'~ti~_;l!Ij
general circulation in the City of San Antonio, in the State and County aforesaid, an '''" .~"~__
Ordinance No. 06-T-61 here to attached has been published in every issue of sa 4;'f;'.,} ';M d.,,,,.;i'~
the following days, to wit:~l1l1'll:._t.n1 , "'" ,"f,.
-,,~R '.l. ..C' ,"
1W:~ ~"> - ... ';,.:t,A..;,
Affidavit of Publisher
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COUNTY OF BEXAR
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City of Schertz
12/27/2006.
~) fl ~---vn'
~d
Sworn to and subscribed before me this 27th day of of December, 2006.
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