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10-11-22 TIRZ MinutesSchertz Tax Increment Reinvestment Zone Number Two Minutes Tuesday, October 11, 2022 4:00 PM The Schertz Tax Increment Reinvestment Zone Number Two convened for a meeting on Tuesday, October 11, 2022 at 4:00 PM in the Council Chambers, Building #4, 1400 Schertz Parkway, Schertz, Texas 78154 TIRZ Board of Directors Present: Mark Davis, Vice Chair Clark McChesney, Jr. Brad Pittenger Jill Whittaker Tommy Calvert, Jr., Bexar County Member Manuel Leal, Bexar County Member TIRZ Board Members Absent: Michael Dahle, Chair Gary Inmon Staff Present: Brian James, Assistant City Manager Cyndi Simmons, Administrative Assistant Guest Present: Bradley Bechtel CALL TO ORDER at 4:25 PM by Vice Chair Davis. HEARING OF RESIDENTS None present. DISCUSSION AND /OR ACTION ITEMS 1. Minutes: Consideration and/or action regarding the approval of the minutes of the April 12, 2022 TIRZ Meeting. A motion was made by Tommy Calvert to approve the minutes of the April 12, 2022 TIRZ Meeting. Seconded by Jill Whitaker. Motion passed. Vote was unanimous. 2. Crossvine Development: Bradley Bechtel reports that for the past 12 years she was the second in command to Chris Price and has stepped into his shoes. They are continuing with everything that Chris had planned. They have recently finished the civil construction on the garden homes, which is the first new building type outside of single- family homes that they are bringing into the Crossvine. The builders have taken down 16 lots and are currently in the building permit process with the city. They are pre - selling at this time. All of the houses are on alleyways where the driveway access is through the alley and all front onto a greenbelt that runs along the front. The greenbelts all feed into the trail system that feeds into the rest of the community for walkability and accessibility. 4 -12 -2022 Minutes Tax Increment Reinvestment Zone Board They will have the first city walk - through next Thursday on the next 139 lots that currently being built south of Woman Hollering Creek. They are anticipating that in approximately 5 weeks we will have our plot recorded and start selling lots there. Tommy Calvert asked what the average price range and square footage range of the garden homes. Bradley Bechtel responded that the square footage of the 77 garden homes will be 1,300 to 2,440 square feet. The starting price for the David Weekley Homes is $373,000 and the starting price for the Scott Felder Homes is $400,000. The largest 2 -story homes are currently priced at $430,000 for the David Weekley Homes and $483,000 for the Scott Felder Homes. On the phase that is currently being built on the 139 lots, they did a PDD amendment that allowed us to have 45, 55, and 65 -foot lots. Previously we had 50, 60, and 70 -foot lots. The reason they asked for slightly smaller lots was to try to address affordability since the cost of building homes has increased. They have integrated pocket parks and trail networks into the plan. There will be a trail and a bridge that will go over Woman Hollering Creek to connect the two phases. They are currently working on an amenity center for the area south of Woman Hollering Creek. There will be another pool and a community room and offices and will be gated and just for Crossvine residents. There's approximately 3 Yz acres that will be outside of the fences that will be landscaped and have amenities to serve the greater community part of the greenbelt and park system. It's an old quarry that has been excavated, but there are giant 100 - year -old oak trees that stand up on hills and the quarry itself is so large that it can almost accommodate a soccer field and there is a natural amphitheater that exists. They are working with a multi - family developer on another section and have been reviewing their elevations and site plan. They recently put a half -court basketball court into Heritage Oaks Park that is also sized to be a pickleball court. There isn't a net available, but Bradley has been informed that it's quite normal for people to have their own net when they go and play on a tennis court because you only use half of a tennis court. They can look into getting one. They are also going to get some community bocce ball sets. One idea is to have a locker that's accessible by a key fob. Jill Whittaker doesn't believe they are being used — the kids do hang out there. Jill Whittaker asked if they've communicated with the residents to see how often people use the pocket parks and designed games. She commented she doesn't typically see people utilizing the pocket parks, just the walking trails. Possibly focus more on the open spaces and putting resources. Bradley responded that every year they send out a resident survey where residents are asked how often they use the parks, what they use the most, what they would like to see in the future and they get both ends of the spectrum in the responses and then post the results on the Crossvine POA site. Tommy Calvert asked what the overall plan is for the preservation of trees and planting of future trees. Bradley Bechtel responded that from a developer perspective, the trees are an irreplaceable asset. In the planning process, they use a survey that has all the trees on it. In the new section, they had to remove three trees. Tommy Calvert also asked if they've seen a slow -down in the market with the interest rates going up and the price level being higher. Bradley Bechtel responded that The Crossvine does not have many lots that are available, so this trend has hit at an interesting time. She advised that the garden home response has been good and they have houses under contract. The Crossvine is not as susceptible to the market up and downs as other communities that don't have as much to offer — green spaces, common spaces, landscaping, amenities — that creates a community that inherently has more value than just a strip subdivision. By design they are somewhat protected. 10 -11 -2022 Minutes 2 Tax Increment Reinvestment Zone Board Brian James reports that there are a few items on Council's agenda for this evening. One of them is a subdivision improvement agreement for Module 3A -Unit 1. The City typically requires all infrastructure associated with a plat to be accepted before filing the plat. Occasionally, we will do agreements to allow the filing of the plat when there are a few outstanding items. In this case, we have been hung up with the improvements associated with FM 1518 in the utility relocation, so the subdivision functions on its own and it is on the agenda. There is also a reimbursement agreement on the agenda for the infrastructure to be put and the city will reimburse. The last one is for improvements to Lower Seguin Road. There is a cost sharing and reimbursement agreement to get Lower Seguin Road built to essentially the edge of the northern property. There are some properties that weren't improved, some land the city owns, and the developers moving forward with some out parcels. The agreement is for by the middle of 2024 the developer has to put in the full section of Lower Seguin Road from the intersection down to the edge of their property. The benefit for the city is we get a complete section built at one time. There is a little lag, but otherwise we'd have it piecemealed. We think it is a win -win for everyone to get the road in, beneficial, reimburses the developer for the sections where they are going above and beyond, and the city will pay for our portion. We've been working with their engineer, city staff, and TxDOT to try to incorporate the design of Lower Seguin Road at the future 1518 intersection to get it built to full build -out condition by widening the intersection both ways so it functions more efficiently as opposed to partially, and then having to go back and correct. Bradley Bechtel reports that there is another new section of The Crossvine with 133 lots that has just gone out to construction bids and should begin in three months with a completion in 12 months. Tommy Calvert asked if there were a lot of disabled veteran exemptions with the new homeowners. Brian James reports, yes. The numbers continue to rise with the fully disabled homestead exemption. In 2022, the total number was 146; in 2021, the total number was 102. Some of the other lower -level exemptions stayed about the same. The numbers are continuing to rise across the community. The city applied for and received a reimbursement from the state for approximately $1.5 -2 million to the impact to the city. You have to be adjacent to the base in order to be eligible. The total went up to just over $60 million from $37 million previously. Clark McChesney asked if there is a way to figure the average increase in home valuation from 2021 to 2022. Brian James advised he will bring a report to the next meeting. Clark McChesney commented that when he did the valuation in 2021, he found that even though disabled veteran waivers and exemptions went up, the price of homes increased enough that it offset what the projection was so we stayed relatively even with regard to tax revenue. 3. Report of TIRZ Financials: Discussion of Finances of the TIRZ. Brian James reported that the cash value balance as of September 30, 2022 was $792,804.84. The remaining outstanding disbursement requests by the developer is $13,691,825.00. At the January meeting we will seek approval for the next payment. The exemptions have substantially impacted the revenue for the TIRZ. This is one benefit of adding the multi - family and eventually the commercial there won't be those exemptions associated with those properties. Brad Pettinger commented that as they went through their analysis and the Board and taxing jurisdictions approved the increase in the term, we use up almost the full term before we get reimbursement because it takes the receipt of revenue before the expenses go down. They continuing to spend money with all the new lots. Master plan communities don't suffer in downturns quite the way a smaller subdivision does. They have critical mass and if somebody's going to move, they're generally picking a master planned community before picking a subdivision with 100 homes in it. They're still positive and optimistic, but they are concerned. This a market where house price is frequently less important than mortgage payment. The benefit of being able to go to 45, 55, and 65 -foot lots reduces lot costs which reduces prices to the consumer. 10 -11 -2022 Minutes 3 Tax Increment Reinvestment Zone Board The next meeting is scheduled for January 10, 2023 and the next payment will be approved at that meeting. Adjournment: Motion made by Tommy Calvert to adjourn the meeting. Seconded by Jill Whittaker. Motion passed. Vote was unanimous. Meeting adjourned at 4:54 PM. Attest: Michael Dahle, Chairperson O,UA� SsLMAM—)1t� - Cyndi S ons, Recording Secretary 10 -11 -2022 Minutes 4 Tax Increment Reinvestment Zone Board