05-31-2019 TIRZ MINUTESMINUTES
REINVESTMENT ZONE NUMBER TWO, CITYOF SCHERTZ, TEXAS
REGULAR MEETING
May 31, 2019
A regular meeting was held by the Reinvestment Zone Number Two, City of Schertz Texas (TIRZ) on
Friday, May 31, 2019 at 12:30 p.m., in the Bob Andrews Conference Room, 1400 Schertz Parkway,
Building #1, Schertz Texas. The following members, staff and the public were present:
Mark Davis, Board Member
John Bierschwale, Vice Chair
Steve White, Board Member
Chris Price, Board Member
Michael Dahle, Board Member
Bob Cantu, Board Member
Rick Trefzer, Board Member
Brian James, Staff
Bradley Bechtol, with The Crossvine
Brad Pittinger, with The Crossvine
CALL TO ORDER:
The meeting was called to order at 12:30 p.m.
Hearing of residents — no one was here to speak
1. Election of Chair and Vice Chair
With there having been new appointments to the Board since the last meeting, it is necessary to
hold election for Chair and Vice- Chair.
A motion was made by John Bierschwale and seconded by Chris Price to elect Michael Dahle as
Chair. The motion passed unanimously.
A motion was made by Steve White and seconded by John Bierschwale to elect Mark Davis as
Vice - Chair. The motion passed unanimously.
2. Approval of the Minutes from February 13, 2018
A motion was made by Steve White and seconded by John Bierschwale to approve the minutes.
The motion passed unanimously.
3. Update on the Stats of Development —Chris Price provided an update on the development.
He noted they have had some challenges this phase, some groundwater issues and contractor
issues that have led them to split the plat into two phases. They hope to have the first plat, for
Phase A filed next week.
The builders are doing very well. They had Pulte, David Weekly and Cal Atlantic. Cal Atlantic was
bought out by Lennar. Lennar has a different business model that doesn't fit with The Crossvine
so they have brought in Scott Felder who has bought up the remaining Cal Atlantic /Lennar lots.
Price points are creeping up. Starting prices are around $330,000 up to about $500,000. They
have recently had two sales of just over $500,000.
He noted they have been dealing with TOOT on the right -of -way take for FM 1518. TOOT has
asked for between 8 feet and 28 feet. This has caused them to have to look to modify some of
the entrances off of FM 1518.
Chris Priced talked about working with the City on the Fire /EMS station. He noted that it looks
like good progress is occurring. He indicated that they appreciate being at the table during the.
design phase as the fire station really will set the standard for the town center.
Chris Price indicated they have room for 900 apartments, but is not sure if they will get that
many. He noted they do have an LOl for about 17 acres off of Lower Seguin road. The perception
is that The Crossvine is still in the middle of nowhere. As such, apartment developers look at the
numbers and are very excited because it is so hard to find available apartments to rent, but then
get out there and feel it is in the middle of nowhere. He feels like they have finally found an
apartment developer who understands the unique attributes of that area.
Chris Price brought up tax exemptions as an area concern. He explained that financial models
were developed to project revenue and up until this past year they had hit the projections, but
this year they were off by about one third. He noted that the City has been looking at this issue
as well and has found that exemptions, particularly the disabled veterans' exemptions, were
having an impact. He explained that this is being seen not just in the area of the TIRZ but
citywide as well. In talking to salespeople, they told him that 50% to 60% of the buyers have
some sort of government connection — civil service, retired military or active duty military. He
noted the materials provide in the packet on this issue. Maps showing these exemptions from
2017 and 2018 were distributed. Chris Price indicated they are talking with the City about the
issue and thinking about how they can still get their full reimbursement, noting that these
exemptions were never baked into the projections.
Brian James noted there was only a small increase in exemptions from 2017 to 2018 and that he
was not sure if exemptions were levelling out. He was also not sure if it may have to do with
changes in program, increased awareness regarding the program or changes to the
administration of program. It also may be that there was a backlog of applications that caused a
big jump the first few years. In addition to the maps, staff provided a spreadsheet showing
exemptions. Brian James also mentioned the change in state law, that no longer allows cities to
ask the valuation of new residential construction, and the impact that may have on appraised
values in the future. Michael Dahle noted that some lots that had an exemption in 2017, no
longer have that in 2018, indicating they had likely been sold. Brian James noted that the State
has a program to compensate cities next to military bases, this helps the City, but does not help
the developer in the TIRZ.
Finally, Chris Price noted that Unit 3, set to begin next year, would be across Woman Hollering
Creek. Also, the garden home project was in the permitting process, 77 units, and is expected to
be very popular
Brian James noted that the Development Agreement would need to be amended and that the
process of doing that would start soon.
4. Report on Tax increment collections and payments received
Brian James provided a status update on collections to date, providing a written summary, and
indicating a balance of almost $1,040,000. Expenses by the developer of just over $15,500,000
have been approved. As such staff recommends payment of $1,000,000. Rick Trefzer asked for
clarification that the previously approved expenses of over $15,000,000 had been approved and
the TIRZ has already paid $1,000,000. This new payment would bring the total to $2,000,000
paid. Brian James indicated that was correct and noted that the Board approves the expenses.
5. Authorize Payments and reimbursements
Rick Trefzer made the motion, seconded by Mark Davis to approve a payment of $1,000,000.
The approval was unanimous.
6. Annual State TIRZ Report
Brian James noted that the Finance Department has sent in the annual State report.
The Board asked about the status of Board appointments. Brian James noted that Bexar County needed
to appoint their two members as Steve White is wanting to step down and Melvin Golla has passed
away.
Rick Trefzer asked about the process for approving expenses. Brian James indicated the City's
Engineering Department looks at the documentation to make sure the work has all been completed and
the costs are reasonable. He indicate perhaps Engineering could provide an overview at the next
meeting. The Board also talked about the time to hold the next meeting.
1:00 adjourned.
Michael Dahle, Chair