9-19-23 TIRZSchertz Tax Increment Reinvestment Zone Number Two
Minutes
Tuesday, September 19, 2023
4:00 PM
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
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.
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r
l 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: —1 "
Michael Dahle, Chairperson
Brian James, Recording Secretary
9 -19 -2023 Minutes Tax31ncrement Reinvestment Zone Board