08-21-20 TIRZ MINUTESMINUTES
REINVESTMENT ZONE NUMBER TWO, CITYOF SCHERTZ, TEXAS
REGULAR MEETING
August 21, 2020
A meeting was held by the Tax Increment Reinvestment Zone Number Two, City of Schertz Texas (TIRZ)
on Friday, August 21, 2020 at 12:00 p.m., 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:
Mark Davis, Board Member
Chris Price, Board Member
Michael Dahle, Board Member
Bob Cantu, Board Member
Rick Trefzer, Board Member
Gary Inmon, Board Member
Brian James, Staff
Brad Pittenger, with The Crossvine
CALL TO ORDER:
The meeting was called to order at 12:00 p.m.
Hearing of residents — no one was here to speak
1. Approval of the Minutes from July 24, 2019
A motion was made by Rick Trefzer and seconded by Bob Cantu to approve the minutes. The
motion passed unanimously.
Update on the Status of Development — Chris Price provided an update on the development. He
noted the properties that are currently part of the TIRZ and the properties to be added as part of
the proposed amendments. He discussed the changes between the original development plan
and the current master plan, highlighting some of the different land uses /phases. He reviewed
some aerial photos of development activity and photos of amenities. He noted average new home
prices in some of,the more recently developed phases. He discussed the future garden home
section, that they hope to break ground on shortly, apartment and town center phases, which is
near the new Fire Station #3. He also discussed their vision for the area to be added to the TIRZ,
generally at the southern end of The Crossvine. A question was asked about the value of property
being added to the TIRZ that is already developed. Brian James noted that property comes in at
the value at the time it is brought in - not as if it were not yet developed.
3. Report on Tax increment collections and payments received
Brian James indicated that no additional payments had been made since the last meeting, but
that the TIRZ had continued to collect funds, around $640,000. It is anticipated a payment will be
authorized at the next meeting and perhaps additional expenditures will be approved.
4. Consider Amending the TIRZ Project and Finance plans including boundaries of the TIRZ
Brian James mentioned that Staff had covered the topic in depth at the last meeting. The big items
proposed to be amended are adding area to the TIRZ, extending the length of the TIRZ and
increasing the maximum amount of reimbursement. These are all being proposed as a result of
the slowdown of the economy and the unanticipated Veteran's Homestead Exemptions, which
have significantly reduced anticipated revenue to the TIRZ and the developer.
Also, the change in the development plan brought in a higher quality development in terms of
built form and amenities — in particular the drainage areas. Making these amendments helps
ensure the project continues along this path. Other changes to the documents include requiring
the developer to enforce the current architectural standards /building materials requirements
that the City can no longer enforce as a result of change in State Law. The process for approving
changes to the Modules has been adjusted to follow current practice. It also allows the developer
to apply for approval of eligible expenses in smaller sections —which is helpful to staff— not having
to review such a large area at one time.
The changes also alter the developer's requirement for the fire station. Initially, the developer
was to build it for $1,100,000. The City ended up spending over $8,000,000 on the fire station.
The change allows the City to use the dedicated property on Ware Seguin Road for anything it
wants. The developer will have to provide $500,000, that the City can use for any purpose (part
of it will be to close out the Fire Station #3 project). A question was posed about how the
developer would pay that. Brian James indicated he would write the City a check — likely doing so
after the TIRZ makes its next payment to the developer. Finally he will provide an additional acre
of land next to Fire Station #3.
Brian James indicated that some language on deeding signs over to the City has been removed as
not one quite remembered why it was in the agreement and no longer seemed applicable. A more
significant change is increasing Bexar County's participate level to 80 %. Brian James outlined the
approval process, going to the different entities. Rick Trefzer asked if SARA had to approve the
amendments given the nature of the impact of the changes. Brian James indicated it would
depend on the initial approval of the change. Rick Trefzer indicated it was not believed it had to
go the SARA Board. Another change is to allow the payments to be made to a trustee. This is really
a financing tool for the developer, and the City Attorney was familiar with and indicated this was
common. The changes outlines that payments will be made by January 31 each year. Minor
changes are being made to the default provisions. In closing, Brian James reiterated the more
significant changes — expanding the boundaries, extending the TIRZ and increasing the maximum
payment. There being no questions, a motion was made to accept the changes by Rick Trefzer
and seconded by Chris Price. The motion passed unanimously.
The next meeting date was mentioned. Brian James gave an update on the Woman Hollering Creek sewer
trunk line and FM 1518 construction.
12:40 adjourned.
Michael Dahle, Chair