Title
An Ordinance approving the 2nd and Douglas Tax Increment Financing Plan and establishing a Redevelopment Area for the plan.
(NOTE: First reading by City Council on April 16, 2019.)
Body
Issue/Request:
An Ordinance approving the 2nd and Douglas Tax Increment Financing Plan and establishing a Redevelopment Area for the plan.
Key Issues:
Approval of this ordinance will approve the 2nd and Douglas Tax Increment Financing Plan. The approval of the ordinance can only be approved by a two-thirds majority vote of the full City Council (six affirmative votes) as the Tax Increment Financing Commission passed a motion in opposition to the Tax Increment Financing Plan.
There are two legislative actions to implement the requested TIF - an ordinance to approve the Plan and an ordinance to approve the Redevelopment Project. Approval of the Redevelopment Project ordinance is the event that starts the 23-year TIF clock, and also locks in the base value of the property for the purpose of determining the captured TIF revenues over the life of TIF. The timing of the redevelopment project approval is very important for this incentive package, as the desire is to activate the TIF project (1) after the Developer has purchased the property (making the property taxable) and (2) after January 1, 2020 . This sequence is how the taxing districts will receive a property tax benefit during the life of the TIF - the base taxes of about $87,000/year will then flow to the taxing districts each year while the TIF is in effect. If the project ordinance is approved before January 1, 2020, then the base value is locked in at $0 (because of the property’s tax-exempt status as of January 12, 2019) and the taxing districts would receive $0 in tax revenues for the life of the TIF.
Each of the two proposed TIF ordinances will require a two-thirds affirmative vote based on the statutory language below. This only applies to the TIF ordinances and not the LCRA Plan ordinance or the PDP ord...
Click here for full text