Agenda 1-9-24
SCHERTZ TAX INCREMENT REINVESTMENT ZONE NUMBER TWO
HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS
1400 SCHERTZ PARKWAY, BUILDING #4
SCHERTZ, TEXAS 78154
AGENDA
TUESDAY, JANUARY 9, 2024 AT 4:00 PM
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.
DISCUSSION AND/OR ACTION ITEMS
1.APPROVAL OF BYLAWS - Approval of Amendments to the Bylaws of Schertz Reinvestment Zone Number Two, City of
Schertz, Texas
2.ELECTION OF OFFICERS
3.MINUTES - Approval of the minutes of the regular TIRZ #2 meeting of September 19, 2023.
4.OVERVIEW OF THE DEVELOPMENT
ADJOURNMENT
CERTIFICATION
I, CYNDI SIMMONS, ADMINISTRATIVE ASSISTANT - CITY MANAGEMENT, 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 4TH DAY OF JANUARY, 2024, AT 12:00 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.
Cyndi Simmons
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 _______________, 2023.
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.
January 9, 2024 TIRZ NUMBER TWO BOARD Page 1
-1- 60131797.3
BYLAWS
OF REINVESTMENT ZONE NUMBER TWO, CITY OF SCHERTZ, TEXAS
ARTICLE I
NAME AND PURPOSE
1.1 Name. The name of this reinvestment zone is Reinvestment Zone Number Two,
City of Schertz, Texas (the "Zone"). The City of Schertz, Texas (the "City"), by means of
Ordinance No. 06-T-61 approved by its City Council, created the Zone on December 19, 2006,
pursuant to Texas Tax Code, Chapter 311, as amended (the "Code").
1.2 Purpose. The Zone was created to support development and public infrastructure
improvements for the Sedona mixed-use project. Such development and improvements within
the Zone shall include, but are in no way limited to, streets, sidewalks, utilities, drainage, parks,
and up to 2,200 residential units. The Board of Directors of the Zone shall perform its purpose
within the limitations of Ordinance No. 06-T-61, and the Code.
1.3 Powers. The Board of Directors of the Zone (the "Board") shall have such
powers and duties as are granted by Section 311.0 IO of the Code.
ARTICLE II
BOARD OF DIRECTORS
2.1 Numbers, Tenure, Appointments, and Vacancies.
(a) Number. Direction and management of the Zone, including control and
disposition of its properties and funds, shall be vested in its Board of Directors (the "Board").
The Board shall be made up of eleven (11) members.
(b) Appointments. The City Council of the City may appoint six (6) directors.
The Commissioners Court of Bexar County (the "County") may appoint two (2) directors so long
as the County is approving payment of its agreed-upon percentage tax increment to the tax
increment fund for the Zone. The San Antonio River Authority ("SARA") may appoint one (1)
director so long as SARA is approving payment of its agreed-upon percentage tax increment to
the tax increment fund for the Zone. The Texas State Senator in whose district the Zone is
located is a director or may designate an individual to serve in that State Senator's place on the
Board, at the pleasure of that State Senator. The member of the Texas State House in whose
district the Zone is located is a director or may designate an individual to serve in that State
House member's place on the Board, at the pleasure of that State House member. Each director
must meet the eligibility requirements of Section 311.0091(f) of the Code. Each director may be
removed at any time, with or without cause, by the entity or individual appointing such director
as described above. The preceding sentence may not be amended without the written consent of
the appointing entities and individuals named above.
-2- 60131797.3
( c) Tenure. Each director may serve a term of two (2) years and until he/she
is re-appointed or his/her successor has been appointed. Terms of directors may be staggered.
There shall be no limits on the number of terms an individual may serve as a director.
(d) Vacancies. The City Council of the City may declare a vacancy in any
seat on the Board upon the death, resignation, or removal (with or without cause) of a director by
the appointing authority thereof, or upon a disability that renders a director incapable of
participating in the management and affairs of the Zone. In the event of a vacancy in a Board
position, the original appointing authority may appoint a successor in the same manner as set
forth herein. The appointing authority may appoint the successor to only serve the time
remaining in the former director's two-year term. Any director may resign at any time by giving
written notice thereof to any officer of the Board and to the entity that appointed said director to
the Board. Such resignation shall not become effective until a successor has been elected or
appointed as provided herein.
2.2 Regular Meetings. The regular meetings of the Board shall be held at such time
and on such date as set by the Board. At such meetings, the Board may transact any business as
may lawfully come before it. The Board shall comply with the Texas Open Meetings Act for all
regular meetings.
2.3 Special Meetings. Special meetings of the Board shall be held upon the written
request of City of Schertz Staff, the Board Chairperson or of at least one-third (1/3) of the
currently-serving directors. The Board shall comply with the Texas Open Meetings Act for all
special meetings.
2.4 Attendance. Attendance of a-director at a Board meeting shall constitute a waiver
of notice of such meeting, except when a director attends the meetings for the sole purpose of
objecting to the transaction of Zone business on the ground that the meeting is not lawfully
convened.
2.5 Quorum and Voting. A simple majority of the currently-serving directors shall
constitute a quorum for transacting business at all Board meetings. A simple majority of the
quorum, voting in the affirmative, at any Board meeting shall be sufficient to conduct Zone
business.
2.6 Telephone Meetings. When permitted by applicable law, one or more (but not
all) physically absent director(s) may participate in a Board meeting by using telephone
conference or other communications equipment that permits all persons participating in the
meeting to hear each other. Participation in a Board meeting pursuant to this Section shall
constitute presence in person at such meeting, except when a person participates in the meeting
for the sole purpose of objecting to the transaction of Zone business on the ground that the
meeting was not lawfully convened. Such meetings must comply with the Texas Open Meetings
Act.
2.7 No Action Without a Meeting. Directors shall not consider or approve any Zone
business without properly convening a Board meeting.
-3- 60131797.3
ARTICLE III
OFFICERS
3.1 Election, Appointment, and Term.
(a) The officers of the Board shall be elected by the Board from the members
of the Board. The officers of the Board shall consist of a Chairperson, a Vice-Chairperson, a
Secretary/Treasurer, and such other officers as may be determined by the Board. Each officer
shall be elected from the existing Board as provided herein. The Board, at its organizational
meeting and annually thereafter, shall elect officers. There is no limit on the number of terms a
director may hold an office.
(b) An elected officer of the Board shall hold office until the earlier of the
date a successor is elected as provided herein, the date such elected officer dies, or the effective
date such elected officer is removed (with or without cause) from office by the Board.
(c) Any officer may resign at any time by giving written notice thereof to any
officer of the Board and to the entity that appointed such officer to the Board. Such resignation
shall not become effective until a successor has been elected or appointed as provided herein.
3.2 Duties. Principal duties of Board officers are as follows:
(a) Board Chairperson. The Chairperson shall preside at all Board meetings.
The Chairperson shall conduct such meetings according to rules established from time to time by
the Chairperson or, in the absence of such rules, in accordance with the then current edition of
ROBERT'S RULES OF ORDER.
(b) Vice-Chairperson. The Vice-Chairperson, if any, shall, in the absence of
the Chairperson, perform the duties of the Chairperson. The Vice-Chairperson shall also assist
the Chairperson as requested by the Chairperson.
(c) Secretary/Treasurer. The Secretary/Treasurer shall, with the assistance of
the staff of the City assigned by the City Manager, perform the following duties: make a record
of all Board meeting proceedings; give, or cause to be given, proper notice of all Board
meetings; safeguard the seal of the Zone, if there is a seal, and when authorized by the Board,
affix such seal to documents; and perform such other duties as requested by the Board or
Chairperson. In relation to Zone funds, the Secretary/Treasurer shall perform the following
duties: review all requests for payment and/or requests for reimbursements from Zone funds;
authorize disbursement of Zone funds as authorized by the Board; promptly forward all eligible
and properly documented requests for payments and/or requests for reimbursements to the City
for satisfaction through the use of Zone funds as authorized by the Board; monitor all
disbursements of Zone funds; keep full and accurate records of all financial transactions
involving Zone funds; and perform other duties as assigned by the Board.
-4- 60131797.3
ARTICLE IV
COMMITTEES
4.1 No Executive Committee. The Board shall not establish an Executive Committee
at any time or for any purpose.
4.2 Standing Committees. The Board may establish standing committees to assist the
Board in executing its purpose. The Board shall describe the duties of each standing committee
at the time the Board establishes the standing committee. The Board shall appoint directors
and/or non-directors to a standing committee for terms prescribed by the Board upon making
appointments to a standing committee. No such committee may bind the Board or the Zone with
respect to any matter.
4.3 Special Committees. The Board may establish special committees to assist the
Board in executing its purpose. The Board shall describe the duties of each special committee at
the time the Board establishes the special committee. The Board shall appoint directors and/or
non-directors to a special committee for terms prescribed by the Board upon making
appointments to a special committee. A special committee shall limit its activities to the
accomplishment of the task(s) for which it was established. No such committee may bind the
Board or the Zone with respect to any matter.
ARTICLEV
AMENDMENTS
Subject to the last sentence of Section 2.1(b), these Bylaws may only be amended by the
Board upon a two-thirds (2/3) majority vote by the Board at any duly called Board meeting,
provided that the notice of such meeting includes notice of such proposed amendment.
ARTICLE VI
NOTICES
6.1 Form of Notice. In addition to the general notice requirements of the Texas Open
Meetings Act, whenever notice is required to be given to any director and no specific provision
is made as to how such notice shall be given, such notice shall be given in writing at least two (2)
calendar days before the meeting. Such written notice shall be sent in the following manner:
(a) by mail, with postage prepaid and addressed to such director at such
address as appears in the Zone's records for that director; or
(b) by messenger, with the fee prepaid and addressed to such director at such
address as appears in the Zone's records for that director; or
(c) by an electronic transmission, addressed to such director at such address as
appears in the Zone's records for that director.
6.2 Waiver. Whenever any notice is required to be given to any director, that director
may waive the notice requirement. Such waiver must be in writing and signed by the director
who is entitled to such notice. Such waiver may be given before or after the events specified in
-5- 60131797.3
the notice. A waiver shall be the equivalent of receiving the required notice prior to the deadline
for receiving such notice.
ARTICLE VII
GENERAL PROVISIONS
7.1 Fiscal Year. The fiscal year of the Zone shall end on September 30 of each
calendar year.
7.2 Books and Records. The Board shall keep correct and complete books and
records of its transactions. The books and records shall be audited annually as part of the City
audit. Such books and records shall be open to public inspection.
7.3 Seal. The Board may, but is not required to, adopt a Zone seal to be in such form
and to be used in such manner as the Board shall direct.
7.4 Public Information Act. The Zone shall comply with the Texas Public
Information Act.
Adopted: October 27, 2008
Revised: February 10, 2009 (Section 2.l(c))
Revised: January 9, 2024 (Sections 2.3, 3.2 (c), 6.1 (a))
Schertz Tax Increment Reinvestment Zone Number Two
Minutes
Tuesday, September 19, 2023
4:00 PM
9-19-2023 Minutes Tax Increment Reinvestment Zone Board
The Schertz Tax Increment Reinvestment Zone Number Two convened for a meeting on
Tuesday, September 19, 2023 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
Manuel Leal, Bexar County Member
Gary Inmon
TIRZ Board Members Absent:
Michael Dahle, Chair
Tommy Calvert, Jr., Bexar County Member
Rick Trefzer, SARA
Staff Present:
Brian James, Assistant City Manager
Guest Present:
Bradley Bechtol
CALL TO ORDER at 4:03 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 January 10,
2023 TIRZ Meeting. A motion was made by Jill Whitaker to approve the minutes of the January
10, 2023 TIRZ Meeting. Seconded by Gary Inmon. Motion passed. Vote was unanimous.
2. Overview of the Development: Bradley Bechtol explained the most important thing going on
now is Module 3A Unit 1 which is the new section south of Woman Hollering Creek and that two
builders have closed on their first sets of lots – the lots have been ready for 9 months, but due to
the situation with interest rates, they had been on pause. The builders are David Weekly and Scott
Felder Homes who are the current builders. They have taken down a total 26 lots and will start on
two models and eight spec homes right away and will try to keep a total of eight spec homes on
the ground at all times, which she thinks speaks to faith they have in The Crossvine. Another
takedown of 12 lots will occur in December. There are a total of 139 lots in this section. It has the
same level of amenities as elsewhere in the Crossvine. The lot widths are 45’, 55’, and 65’ versus
the 50’, 60’, - and 70’ lot widths in prior phases. These are slightly smaller and give the builders
the opportunity to have a slightly lower price point. Builders are offering mortgage rate buydowns
9-19-2023 Minutes Tax Increment Reinvestment Zone Board 2
and other incentives to spur sales. She believes all the things they have done to provide a top-tier
community will allow sales here to outpace the market. They have had six closing the past months,
three Scott Felder and three from Pulte, with the Scott Felder houses selling for roughly $489,000,
$482,000 and $386,000.
David Weekly and Scott Felder have cancelled their garden home contracts. While The Crossvine
sees the garden homes as a lifestyle product the cost per foot is greater - in this case the 40’ garden
home lots would be coming in at prices close to single family homes on 45’ wide lots. It is just
that the builders are extremely conservative right now, so they are looking to other builders to step
in. They are also focused on working on plans for the next phase now. Brightland Homes is putting
in infrastructure on Module 3B Unit 1 which is another 133 lots and they hope to have plat filed
in February 2024. They are still looking for the right multifamily builder. There has been a
constriction of financing for multifamily projects, which does not help. They are in talks with a
daycare provider on the one-acre site on the southside of Lower Seguin Road near Sedona. Finally,
they are working with the City on upgrading and moving utilities along FM 1518. Likely activity
at the town center will not occur until the FM 1518 expansion project is further along. The
pedestrian bridge at the park is now in.
3. Authorize Reimbursement of Previously Approved Expenses: Brian James reminded the Board
that they approve expenditures to be reimbursed that are allowed per the agreements after staff
reviews the documents supporting the expenses. Brad Pittenger described the monetization
agreement the Developer has with First Foundation Bank. He noted that First Foundation Bank
will not take payment until April 1. So as the representative of the Developer he requested that the
City hold the payment until April (assuming the TIRZ Board authorizes it tonight).
Brad Pittenger described his annual efforts to analyze the increment growth and payments. He
analyses how much revenue comes in from The Crossvine, Sedona, vacant lots and miscellaneous
property. He compares the assessed valuation to the market valuation to get a feel for the impact
of veteran’s homestead exemptions, full and partial. He noted that in Sedona the market value per
unit on average went from approximately $233,000 to $295,000 so a sizable increase in Sedona,
but the waivers increased significantly with the assessed value relative to market value going from
about 86 % in 2021 to 75% for Schertz. In Bexar County it went from about 85% to 62%, and
from SARA from about 85% to 75%. The advantage in the Crossvine is that they had the new
Pulte section developed, so the number of homes went from 276 to 458 to offset the increase in
exemptions, with the assessed valuation relative to the appraised valuation for Schertz dropping to
67% , 56% in Bexar County and 65% in SARA. He noted that it is interesting to see the percentage
of homes with veteran’s exemptions in The Crossvine is higher than in Sedona, so this allows these
folks to buy a nicer home. So there is good and bad to this, but it does impact the amount of revenue
paid to the TIRZ. He also noted the increase in market value is significant – in some cases 10% to
15% each year, but that is capped at 10% by the State. So this increase of up to 10% will go on a
while to catch up with the market. So while it is a snapshot, and of only 2 years, it does provide
some insight into what is going on. Brian James noted that the City’s Finance Director indicated
about 19% of homesteads in the City had the full waiver and almost 50% had some level of waiver.
Brian James explained the amount currently in the TIRZ Fund is $1,240,862.59 staff recommends
keeping the number round, so recommends a payment of $1,225,000.00 and staff will coordinate
on when to make the payment. Motion made by Gary Inmon and seconded by Jill Whittaker, to
authorize the payment of $1,225,000.00 from previously approved expenses, the vote was
unanimous.
A brief overview of the agreements and efforts to improve Lower Seguin was provided.
9-19-2023 Minutes Tax Increment Reinvestment Zone Board 3
Adjournment: Motion made by Jill Whittaker to adjourn the meeting. Seconded by Gary Inmon.
Motion passed. Vote was unanimous. Meeting adjourned at 4:27 PM.
Attest:
________________________________ ________________________________
Michael Dahle, Chairperson Brian James, Recording Secretary