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04-12-2022 Agenda with backup SCHERTZ TAX INCREMENT REINVESTMENT ZONE NUMBER TWO HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 AGENDA TUESDAY, APRIL 12, 2022 at 4:00 p.m. CALL TO ORDER Hearing of Residents This time is set aside for any person who wishes to address the Schertz Tax Increment Reinvestment Zone Number Two. Each person should fill out the speaker’s register prior to the meeting. Presentations should be limited to no more than 5 minutes. Discussion by the Board of any item not on the agenda shall be limited to statements of specific factual information given in response to any inquiry, a recitation of existing policy in response to an inquiry, and/or a proposal to place the item on a future agenda. The presiding officer, during the Hearing of Residents portion of the agenda, will call on those persons who have signed up to speak in the order they have registered. REGULAR AGENDA Discussion and/or Action Items 1.Minutes – Consideration and/or action regarding the approval of the minutes of the meeting of the January 11, 2022, and April 13, 2021, TIRZ Meetings. (B. James) 2.Crossvine Development - Overview of the Crossvine Development. 3.Board Membership Regulations - Discuss and Review regarding the Board Membership Regulations. 4.Veteran Exemptions - Discussion of Veteran Exemptions in the TIRZ. Adjournment CERTIFICATION I, BRENDA DENNIS, CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS, DO HEREBY CERTIFY THAT THE ABOVE AGENDA WAS PREPARED AND POSTED ON THE OFFICIAL BULLETIN BOARDS ON THIS THE 8th DAY OF April 2022 AT 3:00 P.M., WHICH IS A PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT SAID NOTICE WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS GOVERNMENT CODE. Brenda Dennis  I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE OFFICIAL BULLETIN BOARD ON _____DAY OF _______________, 2022. TITLE: ______________ This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking spaces are available. If you require special assistance or have a request for sign interpretative services or other services, please call 210-619-1023 at least 24 hours in advance of meeting. special assistance or have a request for sign interpretative services or other services, please call 210-619-1023 at least 24 hours in advance of meeting.   April 12, 2022 TIRZ NUMBER TWO BOARD                  Page 2     BACKGROUND This item is to approve the Minutes of the last TIRZ Board meeting of January 11, 2022, as well as the Minutes from April 13, 2021. RECOMMENDATION Recommend Approval. Attachments April 13, 2021 Draft Minutes January 11, 2022 Draft Minutes Page 1 of 2 MINUTES TAX INCREMENT REINVESTMENT ZONE (TIRZ) NUMBER TWO, CITY OF SCHERTZ, TEXAS REGULAR MEETING TUESDAY, APRIL 13, 2021 A regular meeting was held by the Tax Increment Reinvestment Zone (TIRZ) Number Two, City of Schertz, Texas on Tuesday, April 13, 2021 at 4:00 PM, in the Council Chambers at the Hal Baldwin Municipal Complex, 1400 Schertz Parkway, Building #4, Schertz Texas. The following board members, staff and the public were present: Board Members Present Michael Dahle, Chairperson Mark Davis, Board Member Chris Price, Board Member Rick Trefzer, Board Member Gary Inmon, Board Member Clark McChesney, Board Member Jill Whittaker, Board Member Staff Members Present Brian James, Staff Member Public Present None CALL TO ORDER The meeting was called to order at 4:03 PM. HEARING OF RESIDENTS None present. DISCUSSION AND/OR ACTION ITEMS 1. Approval of the Minutes from January 12, 2021 A motion was made by Clark McChesney and seconded by Rick Trefzer to approve the minutes. The motion passed unanimously. 2. Update on the Status of Development Chris Price indicated that repairs were being made to Module 1 Unit 3 and that the infrastructure would be transferring to the city in a few weeks. The garden home section started construction a few weeks ago and it is ahead of schedule and that they want to deliver the lots in August. The current builders are David Weekly and Scott Felder. Pulte is exiting the project as they have changed their business model and want to be in a different price point. Additionally, they are using a construction technology, a sort of prefab system, so it is hard for them to meet the guidelines. Chris Price noted that Perry homes is coming in. The next phase, Module 3 Unit 1 - preliminary plat is in with city. They are negotiating with builders but it is likely going to be a continuation of Scott Felder and Weekly. Page 2 of 2 Chris Price noted that they are working on a PDD amendment for the newly acquired area further south. He added that sales are doing very well, with prices in the low $300,000s and some near $600,000. The multi-family parcel is under contract and working through the usual issues. Brian James indicated that there are a number of items pending with staff such as a zoning case and a plat down in the southern part of the development. Also, with southern area that council recently rezoned, staff is working with the developer to get access to Ware Seguin Road proper, so there may be an agreement coming to council on that in the future. Chris Price mentioned they reached agreement to buy the outparcel wrapped by the 58 acres. 3. Update on the Amended TIRZ Agreements Both the City and SARA have approved the agreements, so we are just waiting on Bexar County to get it on the agenda. Chris price mentioned it had been reviewed by all county depts except the county attorney. Brian mentioned a few things are being held up pending approval – the developer asked the City to not pay the last approved payment. He noted the developer was wanting to assign revenues in order to adjust their lending. 4. Report on Tax Increment Collections Amount and Expenses (See attached document) The city got some initial data from the appraisal district. It looked like it had fewer homes than we believed to have been built. The Developer and City are reviewing it and doing some research to determine the number of lots with structures on them to correct that, if there is a problem. The discrepancy is almost 100 homes. Jill Whitaker asked whether the developer was in conversations to acquire the sliver of land at Lower Seguin Road and FM 1518. The owner had indicated to her that his land was going to be acquired but it was unclear by whom or how. Chris Price indicated they have been talking for years but there is a difference in expectations and so he wasn’t sure if they would ever acquire it. More discussion occurred on the appraisal district report. Clark McChesney asked what tripped it to show up on the tax role. Brian James indicated he was under the impression that it had to do with the Certificate of Occupancy. ADJOURNMENT Meeting adjourned at 4:20 PM. _____________________________ Michael Dahle, Chair Page 1 of 3 MINUTES TAX INCREMENT REINVESTMENT ZONE (TIRZ) NUMBER TWO, CITY OF SCHERTZ, TEXAS REGULAR MEETING TUESDAY, JANUARY 11, 2022 A regular meeting was held by the Tax Increment Reinvestment Zone (TIRZ) Number Two, City of Schertz, Texas on Tuesday, January 11, 2022 at 4:00 PM, in the Council Chambers at the Hal Baldwin Municipal Complex, 1400 Schertz Parkway, Building #4, Schertz Texas. The following board members, staff and the public were present: Board Members Present Mark Davis, Vice Chair Chris Price, Board Member Clark McChesney, Board Member Jill Whittaker, Board Member Tommy Calvert, Jr., Board Member Manuel Leal, Board Member City Staff Members Present Brian James County Staff Members Present Amy Putney Public Present Bradley Bechtol Jesse Malone CALL TO ORDER The meeting was called to order at 4:15 PM. HEARING OF RESIDENTS None present. DISCUSSION AND/OR ACTION ITEMS 1. Introduction of New Board Members The Board members who were present introduced themselves. It was noted that Bexar County had earlier that day appointed two new members. Manuel Leal, who is the Manager of Bexar County’s Government Relations Office introduced himself. Tommy Calvert, Jr., who is Bexar County Commissioner Precinct 4 introduced himself. Brian James noted that the two legislative appointments were vacant and are often hard to get refilled. Tommy Calvert, Jr. asked whether the board makeup could be amended by the City and County. It was thought that these positions are a required by State Law. Brian James indicated he would research this question for the next meeting. 2. Approval of the Minutes from September 21, 2021, TIRZ Meeting Page 2 of 3 A motion was made by Chris Price and seconded by Jill Whitaker to approve the minutes. The motion passed unanimously. 3. Overview of the Development - Chris Price provided an overview and status update of the development, The Crossvine. He began by introducing Jesse Malone the engineer and Bradley Bechtol. • The project initially had price points starting in the mid $200,000s up to around $450,000. Now the price points start in the low $450,000s and approach $700,000. Chris Price showed the most recent conceptual master plan, noting the first section completed which was completed 5 or 6 years ago and the second section that was completed 3 years ago and the most recent section. He noted they had moved over to the south side of Woman Hollering Creek having broken ground in early November on 139 lots. Scott Felder Homes and David Weekly will remain the builders. The next phase is under construction and the amenity center will be built with unit 2. The first lots should be delivered around August or September. Price points should remain about where they currently are. He noted they are wrapping up construction of the 77 garden home lots which will have the same builders. This is a new product type that has not been seen in the market – rear entry and the front of the house faces a greenbelt. There seems to be a lot of interest in it. • He noted that they are in negotiations with a multifamily developer and hopefully an agreement will be reached in the next 60 days, with construction to be finished late 2023. Chris Price pointed out the 4 or 5 plex rental area to the west of multifamily tract, near Hollering Vine. These would likely be a 2-story product. He pointed out the 1 acre parcel at Hollering Vine and Lower Seguin Road where there are plans for a daycare – probably to be delivered in 2023. He noted the Pulte section to the west only has 20 lots left and should be done by end of year. He explained that Pulte has a different business model and cannot meet the design requirements so they will no longer be in The Crossvine. • Chris Price explained that they will be starting to look at the town center area this year but that will not happen right away as FM 1518 is about to go under construction. Tommy Calvert, Jr. asked about the size of the overall development. Chris price explained it was originally about 850 acres but that 250 acres which were in AICUZ were pulled out of it to not jeopardize Randolph. So now it is about 600 acres with about 2,000 units depending on how many units of multifamily end up in the town center. He estimates there will be 1,400 or 1,500 single family units. In the Town Center, commercial will shrink to about 35 acres out of the 100 acres, with the rest being dense residential. The commercial will be dominated by local businesses and office uses, in particular medical. They also plan to have assisted living. Idea is to have different housing types for the different stages of life. • Bradley Bechtol explained on efforts in the city park – the construction of sport court and a pedestrian bridge from the Pulte Section to the west, over the drainage culvert. Eventually there will be about 14 miles of trails and they will be providing connectivity over Woman Hollering Creek • Brian James noted that the developer is working on platting 1 acre next to the fire station for a future indoor shooting range. He also mentioned the status of the Woman Hollering Creek trunk line which has an estimated substation completion date of January 12, 2023. 4. Authorize Reimbursement of Previously Approved Expenses Brian James explained how the reimbursement process works. The developer submits construction cost documents to the City’s engineering department who reviews the information before a recommendation is taken to the TIRZ Board to approve them as eligible expenses. To date, the Board has approved approximately Page 3 of 3 $35 million out of the up to $66 million allowed per the agreements. Only about $2.6 million has been paid to date. The agreement stipulates payments will be approved and made in January every year. Staff recommends the Board authorize $700,000 be paid. This will leave just $800 in the fund, but additional deposits are expected in March. Tommy Calvert, Jr. asked how many homes had been built. Chris Price indicated that 500 houses have been built to date. Brian James mentioned the substantial number of Veterans Homestead exemptions and said that at the next meeting he would provide an overview of the number of exemptions. Motion to approve the payment of $700,000 made by Tommy Calvert, Jr. and seconded by Jill Whitaker. Motion approved unanimously. ADJOURNMENT Vice Chair Davis called for a motion to adjourn. Motion made by Clark McChesney and seconded by Tommy Calvert, Jr. Motion approved unanimously. Meeting adjourned at 4:35 PM. _____________________________ Michael Dahle, Chair BACKGROUND The Developer of The Crossvine will provide an overview of the status of their development. BACKGROUND At the last TIRZ Board meeting it was requested that staff review the Board Membership regulations. Of particular interest are the two board positions for the State Senator and House of Representatives member. The Senator and House of Representatives members may designate another individual to serve in their place, but these positions cannot be eliminated or reassigned to be appointed by any of the taxing districts. BACKGROUND At the January 11, 2022, TIRZ Board meeting the topic of Veterans Exemptions in the TIRZ came up. Staff indicated they would provide an overview of the Veteran Homestead Exemptions in the TIRZ District.