2014_06.03 CC Packet - Public
KENNEDALE CITY COUNCIL
AGENDA
SPECIAL MEETING
June 3, 2014
CITY HALL COUNCIL CHAMBERS, 405 MUNICIPAL DRIVE
SPECIAL SESSION - 5:30 PM
I. CALL TO ORDER
II. ROLL CALL
III. REGULAR ITEMS
*NOTE: Pursuant to Section 551.071, Texas Go vernment Code, the City Council reserves the
right to adjourn into Executive Session at any time during the work session or the regular
session to discuss posted executive session items or to seek legal advice from the City
Attorney on any item posted on t he agenda.
A. Discuss and consider approval of Ordinance 548, approving a Project Plan and Finance Plan for the
City of Kennedale Tax Increment Reinvestment Zone #1.
IV. EXECUTIVE SESSION
A. The City Council will meet in closed session pursuant to Section 551.071 of the Texas Government
Code for consultation with the City Attorney pertaining to any matter in which the duty of the City
Attorney under the Texas Disciplinary Rules of Professional Conduct may conflict with the Open
Meetings Act, including discussion of any item posted on the agenda, legal issues regarding
nonconforming uses, discussion of zoning issues in the city, and legal issues regarding the preparation
of development agreements.
B. The City Council will meet in closed session pursuant to Section 551.087 of the Texas Government
Code to deliberate the offer of a financial or other incentive to a business prospect that the
governmental body seeks to have locate, stay, or expand in the City of Kennedale.
V. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO
EXECUTIVE SESSION, IF NEEDED
A. Discuss and consider approval of a Developme nt Agreement with HM Real Estate Management,
Ltd. for the development and use of property along New Hope Road within the boundaries of Tax
Increment Reinvestment Zone #1.
B. Discuss and consider approval of Resolution No. 426, approving a TIRZ Develop ment Agreement
with HM Real Estate Management, Ltd. for reimbursement of project costs for the construction of
public improvements in the Project and Finance Plan for the City of Kennedale Tax Increment
Reinvestment Zone #1.
Page 2 of 2
VI. ADJOURNMENT
In compliance with the Americans with Disabilities Act, the City of Kennedale will provide for reasonable
accommodations for persons attending City Council meetings. This building is wheelchair accessible, and
parking spaces for disabled citizens a re available. Requests for sign interpreter services must be made
forty -eight (48) hours prior to the meetings. Please contact Amethyst Cirmo, City Secretary, at
817.985.2104 or (TDD) 1.800.735.2989
CERTIFICATION
I certify that a copy of the June 3, 2014, agenda was posted on the City Hall bulletin board next to the main entrance of the City Hall
building, 405 Municipal Drive, of the City of Kennedale, Texas, in a place convenient and readily accessible to the general p ublic at
all times and said agenda wa s posted at least 72 hours preceding the schedule time of said meeting, in accordance with Chapter
551 of the Texas Government Code.
___________________
Amethyst G. Sloane , City Secretary
______________________Staff Report to the Honorable Mayor and City Council
Date: June 3, 2014
Agenda Item No: REGULAR ITEMS - A.
I. Subject:
Discuss and consider approval of Ordinance 548, approving a Project Plan and Finance Plan for the City
of Kennedale Tax Increment Reinvestment Zone #1.
II. Originated by:
Bob Hart
III. Summary:
As per Section 311.011(d) of the Texas Tax Code, the City Council must officially approve a project plan
and reinvestment zone financing plan after its adoption by the zone's board.
Council adopted Ordinance 506 on 07/12/2012, which designated the physical areas to be covered by the
TIRZ, but did not address/approve plans or financing, as that point in the process had not yet been
reached.
The attached plan (Exhibit A to the Ordinance) was adopted by the TIRZ board on 10/26/2012, but was
not officially adopted by City Council, which will be remedied by the approval of the attached ordinance.
Please see the attached ordinance and plan for full details.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
Approve
VII. Alternative Actions:
VIII. Attachments:
1.O548 Project & Finance Plan.docx
2.Exhibit A Kennedale TIRZ #1 - Full Approved Plan.pdf
W:\Kennedale\ORDINANC\Project & Finance Plan.docx (05/23/14)Page 1
ORDINANCE NO. 548
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
KENNEDALE , TEXAS, APPROVING A PROJECT AND FINANCE
PLAN FOR TAX INCREMENT REINVESTMENT ZONE NUMBER
ONE ; MAKING CERTAIN FINDINGS; PROVIDING A
SEVERABILITY CLAUSE; AND PROVIDING FOR AN IMMEDIATE
EFFECTIVE DATE.
WHEREAS , pursuant to Chapter 311 of the Texas Tax Code, on July 12, 2012, the City
Council of the City of Kennedale, by the adoption of Ordinance No. 506, created Reinvestment
Zone Number One – Noncontiguous Geographic Areas, New Hope Road and Bloxom Road,
City of Kennedale (the “Zone”); and
WHEREAS , Section 311.011(d), Texas Tax Code, provides that the City Council must
approve a project plan and reinvestment zone financing plan after its adoption by the board of
the reinvestment zone; and
WHEREAS , on October 26, 2012, the Board of Directors of the Zone approved a
project and finance plan for the Zone entitled Tax Increment Reinvestment Zone Number One –
Noncontiguous Geographic Area New Hope Road Project Plan (the “Project and Finance
Plan”), a copy of which is attached hereto as Exhibit A ; and
WHEREAS , pursuant to Section 311.011(d), Texas Tax Code, the City Council finds
that the Project and Finance Plan is feasible.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF KENNEDALE, TEXAS:
SECTION 1.
RECITALS.
That the recitals, findings, and determinations contained in the preamble to this
Ordinance are incorporated into the body of this Ordinance as if fully set forth in this Section
and are hereby found and declared to be true and correct legislative findings and are adopted as
part of this Ordinance for all purposes.
SECTION 2.
PROJECT AND FINANCE PLAN APPROVAL.
That the City Council does hereby approve the Project and Finance Plan , a copy of
which is attached hereto as Exhibit A and incorporated herein for all purposes.
W:\Kennedale\ORDINANC\Project & Finance Plan.docx (05/23/14)Page 2
SECTION 3.
SEVERABILITY .
That if any provision, section, subsection, sentence, clause or phrase of this Ordinance,
or the application of same to any person or set of circumstances, is for any reason held to be
invalid, the validity of the remaining provisions of this Ordinance or their application to other
persons or sets of circumstances shall not be affected thereby, it being the intent of the City
Council in adopting this Ordinance that no provision of this Ordinance shall become
inoperative because of the invalidity of another provision; and, therefore, all provisions of this
Ordinance are declared severable for that purpose.
SECTION 4.
EFFECTIVE DATE.
This Ordinance shall take effect immediately upon its passage as provided by law.
PASSED AND APPROVED on this 3 rd day of June, 2014.
APPROVED:
_______________________________
Mayor
ATTEST:
_______________________________
City Secretary
APPROVED AS TO FORM:
_______________________________
City Attorney
The City of Kennedale, Texas
Tax Increment Reinvestment Zone
Number One - Noncontiguous
Geographic Area
New Hope Road
PROJECT PLAN
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
1
Tax Increment Reinvestment Zone
Number One – Noncontiguous Geographic Area
City of Kennedale, Texas
New Hope Road
TABLE OF CONTENTS
OVERVIEW ....................................................................................................................................................... 2-3
THE PROJECT PLAN ....................................................................................................................................... 4-8
H ISTORY ............................................................................................................................................................................ 4-5
D ESCRIPTION OF THE P ROPOSED CHANGES .................................................................................................................... 5-8
TAX INCREMENT ANALYS IS .......................................................................................................................9-14
CRITERIA AND REQUIREMENTS ............................................................................................................ 12 -14
DESCRIPTION OF NEW HOPE TIRZ DISTRICT ................................................................................... 15 -26
E XHIBIT A- C URRENT ZONING ................................................................................................................................... 15 -16
E XHIBIT B- P ROPOSED ZONING .................................................................................................................................. 17 -18
E XHIBIT C- L EGAL DESCRIPTION OF BOUNDARY OF Z ONE ........................................................................................ 19 -20
E XHIBIT D- O RDINANCE A DOPTED BY THE C ITY COUNCIL ....................................................................................... 21-26
FINANCE PLAN ........................................................................................................................................... 27-28
T AX I NCREMENT A NALYSIS ................................................................................................................................................27
E CONOMIC PROFORMA .......................................................................................................................................................28
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
2
OVERVIEW
The City of Kennedale adopted a strategic plan- Imagine Kennedale-2015 in 2009. This plan has
guided recent development such as:
The adoption of a Comprehensive Land Use Plan in February 2012.
Closure of four sexually oriented businesses located at IH-20 and Kennedale
Parkway.
Construction of Bowman Springs Road and bridge at Little School Road and
Sublett Road. These roads were completed as a part of the Tarrant County
Transportation Board Program.
Development of Kennedale TownCenter. The retail center is a long-term project
funded in part by the Kennedale Economic Development Corporation and a
legislatively created Municipal Management District-Kennedale Development
District. The TownCenter serves as the community gathering point.
Constructed a replica of the Kennedale Section House within the TownCenter to
serve as the Chamber of Commerce offices. The construction was funded by the
KEDI, donations, and the Union Pacific Railroad Foundation.
Development of TownCenter Park, Rodgers Farm Park, and expansion and
redevelopment of Sonora Park. All three parks have enabled the community to
host community-wide family events.
Secured a street beam from the World Trade Center to construct a 9-11 memorial.
The memorial is located in the TownCenter Park and was dedicated in October
2011. The memorial will be featured in the forthcoming book by the Port
Authority of New York on 9-11 memorials nationwide.
Opening of Red’s Roadhouse, an entertainment based restaurant, with assistance
from Kennedale Economic Development Corporation.
Recently awarded $900,000 TxDOT Green Ribbon grant to landscape a portion of
Kennedale Parkway. Bids have been awarded with construction scheduled for the
fall.
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
3
Recently award RTR grant through NCTCOG to construct a sidewalk along one
side of Kennedale Parkway. Construction will occur in 2012-2013 fiscal year.
Beyond these projects the strategic plan also calls for the restoration of Village Creek,
development of a commuter rail stop, closure of the salvage yards, and development of
residential housing. Consistent with t he strategic plan, the City of Kennedale desires to open the
South West portion of the town to residential development. The primary impediment to the
development of this area is the presence of three race tracks. Establishment of the Tax Increment
Reinvestment Zone will permit the orderly transfer of the land use to residential use. To do so,
the City will need to develop New Hope Road, expand a sewer trunk line, install a commuter rail
stop, and extend hike and bike trails. The critical component to this effort is the establishment
and utilization of a Tax Increment Reinvestment Zone for New Hope Road. The City of
Kennedale extended a 16” water line to the New Hope Road area in 2011.
A second component of the TIRZ is for the extension of water and sewer service to Bloxom
Industrial Park and street construction within the Park. The City of Kennedale has received
offers for industrial development and plans on developing Bloxom Industrial Park for this
purpose. This component is important because it will open property to industrial expansion prior
to the village creek improvements.
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
4
THE PROJECT PLAN
History
Kennedale is a city of approximately 6,763 people located immediately southeast of Fort Worth
in the south-central portion of the Dallas-Fort Worth Metroplex. Though it was not incorporated
until 1947, Kennedale was founded in 1882. Kennedale was known in the late 19 th and early 20 th
century for its agricultural areas, brickyards, and mineral wells. This, along with the city’s
location along the Fort Worth and New Orleans Railway (today the Union Pacific Railroad) and
the Mansfield Cardinal Road, led to the city’s early prosperity. The city’s downtown was
destroyed by a fire in 1908, which resulted in few historic structures remaining in Kennedale.
One of the largest selling points for the City of
Kennedale is its location. Kennedale’s location
between the vibrant area of Fort Worth’s
Downtown and the booming development of
Arlington make it attractive to businesses and
residents alike. It gives both the ability to be
somewhat removed from the hustle and bustle of the
larger cities, while remaining within a “stone’s
throw” of many major regional attractions.
In the past, one of Kennedale’s greatest challenges
has been the presence of sexually oriented businesses (primarily video stores, but also so-called
“gentleman’s clubs”) within the city. These businesses were primarily located near the
intersection of Kennedale Parkway and IH-20 – the city’s front door. Over the last year, these
businesses have closed or relocated outside of Kennedale. In light of the relocation of these
businesses, the City of Kennedale has positioned itself for rebranding and redevelopment.
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
5
Kennedale has also been historically known for its three race tracks (two oval tracks and one
quarter-mile drag strip). All three of these facilities
are located along Kennedale New Hope Road
between downtown and Hudson Village Creek
Road. These race tracks have long been a barrier
for development within the City of Kennedale.
Many developers shy away from this area due to
the noise associated with the racetracks. In
addition, they are a “nuisance” to many of the
residents (including residents of Arlington and
Mansfield), who have long complained about the elevated noise levels. With the establishment of
the New Hope Road TIRZ, it would aide in the removal of the race tracks.
Several planning studies have been completed for the City of Kennedale over the last several
years. Of particular interest for this report, are the recently adopted 2012 Comprehensive Plan
an d the Imagine Kennedale-2015 strategic plan. The Imagine Kennedale-2015 strategic plan
s erved as a framework that ultimately shaped the Comprehensive Plan. It outlines many of the
goals and public projects within the New Hope Road TIRZ. Having clear, distinct and precise
de velopment goals are key to the success of any TIRZ. The City of Kennedale’s Comprehensive
Plan provides that framework and guide.
Description of the Proposed Changes
The purpose of the New Hope Road TIRZ is to encourage residential development in the
targeted area. In order to attract development, certain elements of infrastructure must be in place.
Residential development requires three major components. Those components are water, sewer,
and roadways. The City of Kennedale spent $2.1 million between 2009 and 2011 to establish an
adequate water supply for New Hope Road. The New Hope TIRZ will help continue that
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
6
commitment to development by funding the other needed public projects. These projects include
road construction, the extension of the sewer trunk tributary from Village Creek, hike and bike
trails, and land banking for a commuter rail stop. All of the aforementioned are necessary for
encouraging the desired development.
In the city’s 2012 Comprehensive Plan , New Hope Road will be constructed as a boulevard. A
boulevard is described as being most closely associated with the traditional minor arterial
roadway. Based on this role, boulevards are expected to carry a fairly high capacity of both local
and regional traffic, but in a more urban or local setting than the Parkway. Bicycle and pedestrian
use is also expected to be higher on these boulevards.
In addition, boulevards should be designed for medium-
speed travel of vehicles (35 to 40 mph) in a walkable, urban
environment. Boulevards may be long corridors and typically
consist of 2 or 4 lanes. Because they carry a significant mix
of local and through traffic, access management is important
along boulevards, such as synchronized signal timing, shared
access for businesses, or even restricting access to side
streets.
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
7
New Hope Road will be designed to meet the following:
Number of Through Lanes
Lane Width
Desired Operating Speed (mph)
Median
Driveway Access
Curb Parking
Pedestrian Facilities
Bicycle Facilities
Street S ide Width
Required ROW Width
2 lanes with 4 lane right of way
14’
35 - 40
12’ - 18’
Limited
No
5’ - 10’
Bike lane or buffered bike lane
18’ - 22’
100’ - 130’
Once the newly renovated boulevard is constructed, all
necessary conditions would be in place for new development. A
further examination of the city’s 2012 Comprehensive Plan
reveals the intent for biking trails, housing, and a retail node.
One of the major developments anticipated in the 2012
Comprehensive Plan is a Neighborhood Village at the intersection of the planned extension of
Little Sublett Road and New Hope Road. The plan details what can be expected from the
“neighborhood village”. These villages serve the surrounding neighborhood and community.
They are smaller and less intense than Urban Villages. Uses should include a dense mix of
residences and businesses. Neighborhood Villages should be very easily accessible by foot from
the surrounding neighborhoods.
The plan indicates a vast expansion in the number of single family
housing units over the life of the TIRZ. This increase translates into a
significant increase to the tax base. However, it is important to note
that with this increase in residents, there will also be a need for
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
8
improved emergency response. The city has identified the most cost effective way to address this
concern is to extend Little School Road from Kennedale Parkway to Dick Price Road. It is
important to note that this extension will include an elevated railroad crossing, which will
eliminate any delays in response from emergency personnel due to train crossings. The city
anticipates submitting the Little School Road extension and bridge in a future county
transportation bond program.
Th e 2012 Comprehensive Plan outlines the framework for the direction of the City of
Kennedale. The New Hope Road TIRZ is the
catalyst for economic development that will
support the Kennedale TownCenter and other
anticipated business development along
Kennedale Parkway.
The map from the 2012 Comprehensive Plan
shows how essential New Hope Road is to the
future development of the city; it provides
direct access to the Kennedale TownCenter ,
is adjacent to planned commuter rail station ,
a nd connects neighborhood villages.
New Hope Road must be built for any of these developments, including the neighborhood
village, to be possible.
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
9
TAX INCREMENT ANALYSIS
A. Development within the New Hope Road TIRZ will consist of public improvements and
private investment projects over time. These improvements will create a “boulevard” and
“residential village” that will be welcoming and inviting to not only individuals, but
businesses as well.
B. The initial improvements contemplated in the New Hope Road TIRZ include public
infrastructure (curb, drainage, sidewalks, etc.) all associated with the boulevard style
development envisioned. The improvements planned for the New Hope Road TIRZ will
include, but are not limited to the following:
Construction of New Hope Road*
Extension of 12 inch sewer trunk line
(3,800 ft.)*
Acquisition of 3.5 acres of land for
commuter rail station
Beautification landscaping in the medians
Water line along New Hope Road
Landscaping along sidewalks to create shade
and beautification to further enhance a
pedestrian friendly atmosphere
Hiking trails
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
10
New Hope Component
New Hope Road
Construction Costs
Surveying, Engineering and Right of Way Acquisition
$7,000,000
$3,000,000
Sewer Extension
Construction Costs
Easement
Engineering and Surveying Costs
$600,000
$120,000
$80,000
Parks and Trails
Construction Costs
Engineering and Design
$670,000
$80,000
Commuter Rail Stop
$500,000 Land Acquisition
Bloxom Park Component
Bloxom Park Road $150,000
Sewer Extension
Water Extension
$400,000
$175,000
C. Bonded indebtedness is contemplated to be incurred during various phases of the project.
Debt will be based on size, scope, and timing of the projects.
D. The expected sources of revenue to finance or pay project costs, including the percentage
of tax increment participation is reflected as follows:
Taxing Unit Contributing Percent 2011 Tax Rate
City of Kennedale 100% 0.7225
Tarrant County 75% 0.264
Tarrant County Health District 50% 0.227897
Tarrant County College 50% 0.14897
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
11
E. The current appraised value of the taxable real property in the New Hope Road TIRZ is
estimated to be $18,906,681 based upon 2011 values. This is approximately 3.5% of the
total appraised value of all taxable property in the City of Kennedale, or well within the
50% limit (Based upon a 2011 total appraised value of $541,688,203 for the City of
Kennedale).
F. The total acreage amount of the privately owned property used for residential purposes
within the New Hope Road TIRZ is 123.73 acres or approximately 23% of the 544.67
acres of the TIRZ. This is well within the 30% maximum allowed.
G. The taxable real property in the Zone is projected to increase to $112 million by 2035 and
to generate a total increment of $9 million over the life of the TIRZ.
H. T he projected total contribution by each Taxing Unit over the life of the TIRZ are:
The City of Kennedale $9.06 million
Tarrant County $2.4 8 million
Tarrant County Health District $1.43 million
Tarrant County College $ 938 thousand
*Property tax rates are conservatively assumed to remain unchanged from 2011 rates.
I. The duration of the Zone will be lesser of the 25 years or when the project costs are paid.
Assuming the Zone exists for its full term, the expiration date of the Zone will be
December 31, 2038. The Zone will begin with the increment generated by the 2013 tax
a ppraisal and end with th e increment generated by the 2038 tax appraisal.
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
12
CRITERIA AND REQUIREMENTS FOR THE REINVESTMENT ZONE
The City of Kennedale is proposing to create this Zone to transform New Hope Road from its
currently zoned commercial use to a largely residential area. The land use change is consistent
with the newly adopted 2012 Comprehensive Plan , and is important to the long-term success of
Kennedale TownCenter and future commuter rail stop because of the increased population. New
Hope Road is envisioned as a neighborhood corridor with a neighborhood village at the
intersection of New Hope Road and the future Little School Road extension.
The project plan and financing plan m eet s the following criteria for a reinvestment zone as stated
in Texas Tax Code Section 311.005:
(1) substantially arrest or impair the sound growth of the municipality or county designating
the zone, retard the provision of housing accommodations, or constitute an economic or social
liability and be a menace to the public health, safety, morals or welfare in its present condition
and use because of the presence of faulty layout in relation to usefulness, and the
predominance of defective or inadequate sidewalks and street layout, and unsafe noise and
dra inage erosion control issues.
The Zone, located along New Hope Road includes land from commercial race tracks. As
Kennedale and the general area have grown, the noise generated from racing is increasingly a
nuisance. The tracks have inadequate erosion control resulting in silt/sediment run off into bar
ditches thereby reducing drainage capacity. The noise impedes the sale of homes, and the
orderly development of property. Prior efforts to abate noise levels have been marginal. In order
to induce residential development, New Hope Road must be rebuilt as a boulevard and
wastewater service extended along the Village Creek tributary.
“(a-1) Notwithstanding subsection (a), if the proposed project plan for a
potential zone includes the use of land in the zone in connection with the
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
13
operation of an existing or proposed regional commuter or mass transit rail
system, or for a structure for facility that is necessary, useful or beneficial to
such a regional rail system, the governing body of a municipality may designate
an area as a reinvestment zone.”
The area of the Zone located along the railroad tracks at New Hope Road, includes the use of
land in connection with the operation of a proposed regional commuter rail stop.
The project plan also meets the requirements to create a TIRZ as required by Section 311.011 of
the Texas Tax Code.
1. A map showing existing uses and conditions of real property in the zone and a map
showing proposed improvements to and proposed uses of that property.
The TIRZ will cover two noncontiguous geographic areas in the City of Kennedale as
shown in the map below. The existing uses are described in Exhibit “A,” and Exhibit
“B” map shows proposed improvements and proposed uses of that same property with
the TIRZ in place.
The boundary of the proposed zone is also shown in the map Exhibit “B ” and more fully
described in Exhibit “C ” - Description of the Zone
2. Proposed changes of zoning ordinances, the master plan of the municipality, building
codes, other municipal ordinances, and subdivision rules and regulations if any.
Current zoning is for the proposed project is primarily commercial; however, a recent
adoption of the comprehensive land use plan changes the zoning to residential, creat es a
neighborhood village, boulevard with sidewalks and trails for creation of multi
transportation use.
These changes in zoning, master plan, codes and ordinances have been made through the
established policies and procedures of the city.
3. A list of estimated non-project costs.
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
14
Non-project costs are development costs not paid for by the zone. These costs include
the residential development contemplated in the residential area along New Hope Road
and commercial development on New Hope Road.
4. A statement of a method of relocating persons to be displaced as a result of the
implementation of this plan.
No persons are currently contemplated to be displaced as a result of implementing this
project plan.
In the event that any relocation arises as a result of implementing the project plan, they
will be made through the established policies and procedures of the city.
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
15
Exhibit A – Current Zoning
New Hope TIRZ District
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
16
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
17
Exhibit B – Proposed Zoning
New Hope TIRZ District
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
18
Proposed Zoning, New Hope TIRZ District
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
19
Exhibit C – Legal Description of Boundary of Zone
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
20
CA Boaz Subd Of J B Renfro Survey Blk Lots 29, 30, 31, 32B, 32C, 32D2A, 32Dr, 32E,
32R, 33, 34A, 34B, 35A, 35B, 36A, 36A1, 36A2 & NE Pt 37, 36A3, 36A4 & 36D, 36A5 &
36E, 36B, 36C, 37A, 37B, 37B1, 38, 39.
E C Cannon Survey A378 Trs 1J01 & 1Ee.
Wade H Hudson Survey A716 Tr 2, 2C, 2C01, 2C02, 2C03, 2C04, 2C04A, 2C05, 2C06, 2C07,
2C08, 2C09, 2C10, 2C10A, 2C11, 2C12; 2C13; 2C14, 2C15, 2C16, & 2C17 (AKA Bloxom
Business Park Lts 26, 27, 28, 29); 2C18, 2C18, 2C19, 2C20, 2C21, 2C22, 2C23, 2C24, 2C25,
2C25A, 2C25B, 2D, 2E.
Kennedale Speedway Park Addn Blk 1 Lot 1.
Kennedale Sub-Station Addn Blk 1 Lot 1 and Blk 2 Lot 1.
City of Kennedale Addn Blk 23 Lot 1A; Blk 44 N100'7 & 8; Blk 44 Lts 1 2 S20'7 & 8; Blk 44
Lots 3& 4; Blk 44 Lts 5, 6 & Vacated Alley; Blk 45 Lots 5-8 & Pt Closed Alley, Lots 1R & 3R;
Blk 45 Lts 9-12 & Pt Closed Alley; Blk 45 Lts 13- 16 & Pt Closed Alley; Blk 66 Lts 1, 2, 15, 16
& Pt Of Closed Alley; Blk 66 Lts 3, 4B, 5B, 6B, 7B, 8B & Pt Of Closed Alley; Blk 66 Lts 4A,
5A, 6A, 7A, 8A & Pt Of Closed Alley; Blk 66 Lts 9, 10, 11, 12, 13A & Pt Of Closed Alley; Blk
66 Lts 13B, 14 & & Pt Of Closed Alley; Blk 67 Lts 1-12 & Closed Alley; Blk 88 Lots 1R, 2R,
3R, 4R, 5R, 6R, 7R; Blk 89 Lots 1, 2; Blk 90.
Kim Addn Blk 1 Lot 1.
Living Water Baptist Church Blk 1 Lot 1.
Pine Meadow Addn Blk 1, Lots 1-11, 12R, 13R, 14-32; Blk 2 Lots 1-3.
Raceway Estates Addn Blk Lots 1A1, 1A2, 1B, 2, 3, 4, 5A, 5B, 6A, 6B1, 6B2, 6B3, 7A, 7B.
Jesse B Renfro Survey A1260 Trs 1A, 1A01, 1A01A, 1A02, A03B, 1B, 1B01, 1B01A, 1C01,
1C01A, 1C02, 1D, 1E, 1F, 1F01, 1F01A, 1F01A1, 1G, 1G01, 1G01A, 1G02, 1G02A, 1H, 3E,
5E, 5E01, 5E02, 5E03, 5E04, 5E05, 5H, 1A3A & 1A3E, 1A3C & 1A3D, 5F, 5F1, & 5J.
R C Richey Survey A1358 , Trs 1, 1A, 1B, 1C, 2, 2A, 2A01, 2A02, 2B1, 2B2, 2B4, 2B5.
R C Richey Survey A1359 Trs 1, 1A, 1B, 1C, 1D, 1E.
Robert C Richey Survey A1327 Trs 1A01, 1B, 1B01, 1C, 2, 2B, 2B01, 2B2, 2B3, 2B04, 2C,
2D, 2E, 2F, 2G, 2H, 2J, 2K, 2L, 2M.
Peter Rouche Survey A1338 Trs 1, 1B, 1C, 2, 2B, 2C.
Joel Snider Survey A1448 Trs 1A, 1B, 1C, 1D, 1D01, 2, 2A, 2B, 2C, 3, 3A, 3A01, 3B, 3B01.
C B Teague Survey A1506 , Trs 2, 3, 4, 4A, 4A01, 4A01A, 4A01A1, 4A01B, 4A01C, 4A02,
4B, 4B01, 4B02, 4E, 4F, 5, 5A, 5A01, 5B.
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
21
Exhibit D – Ordinance Adopted by the City Council
of the City of Kennedale creating the TIRZ
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
22
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
23
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
24
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
25
The City of Kennedale
Reinvestment Zone Number One – Noncontiguous Geographic Area
Project Plan
26
NEW HOPE ROAD TIRZ TAX INCREMENT
ANALYSIS 2014 Increment 2015 Increment 2016 Increment 2017 Increment 2018 Increment 2019 Increment 2020 Increment 2021 Increment 2022 Increment 2023 Increment 2024 Increment 2025 Increment 2026 Increment 2027 Increment 2028 Increment 2029 Increment 2030 Increment 2031 Increment 2032 Increment 2033 Increment 2034 Increment 2035 Increment 2036 Increment 2037 Increment 2038 Increment
Base Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038
Base Year Taxable Value 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00 18,906,681.00
Addition In Value From New Development
Housing
Housing Units added 5 10 15 15 15 20 20 20 25 25 25 20 20 20 20 20 20 20 20 20 20 20 20
Cumulative Housing Units Added 5 15 30 45 60 80 100 120 145 170 195 215 235 255 275 295 315 335 355 375 395 415 435
Cumulative Housing Value Addition @$250K
Per Home $250,000.00 $1,250,000.00 $3,750,000.00 $7,500,000.00 $11,250,000.00 $15,000,000.00 $20,000,000.00 $25,000,000.00 $30,000,000.00 $36,250,000.00 $42,500,000.00 $48,750,000.00 $53,750,000.00 $58,750,000.00 $63,750,000.00 $68,750,000.00 $73,750,000.00 $78,750,000.00 $83,750,000.00 $88,750,000.00 $93,750,000.00 $98,750,000.00 $103,750,000.00 $108,750,000.00
Commercial $1,000,000.00 $1,000,000.00 $1,000,000.00
Industrial $500,000.00 $500,000.00 $500,000.00
Total Additions from New Development $20,156,681.00 $22,656,681.00 $26,406,681.00 $30,156,681.00 $33,906,681.00 $39,406,681.00 $43,906,681.00 $48,906,681.00 $55,156,681.00 $61,406,681.00 $68,156,681.00 $73,656,681.00 $77,656,681.00 $82,656,681.00 $87,656,681.00 $92,656,681.00 $98,156,681.00 $103,656,681.00 $107,656,681.00 $112,656,681.00 $117,656,681.00 $123,656,681.00 $127,656,681.00
2% Value Growth $0.00 $453,133.62 $528,133.62 $603,133.62 $678,133.62 $788,133.62 $878,133.62 $978,133.62 $1,103,133.62 $1,228,133.62 $1,363,133.62 $1,473,133.62 $1,553,133.62 $1,653,133.62 $1,753,133.62 $1,853,133.62 $1,963,133.62 $2,073,133.62 $2,153,133.62 $2,253,133.62 $2,353,133.62 $2,473,133.62 $2,553,133.62
Cummulative Increment Value Over Base
$1,250,000.00 $4,203,133.62 $8,028,133.62 $11,853,133.62 $15,678,133.62 $21,288,133.62 $25,878,133.62 $30,978,133.62 $37,353,133.62 $43,728,133.62 $50,613,133.62 $56,223,133.62 $60,303,133.62 $65,403,133.62 $70,503,133.62 $75,603,133.62 $81,213,133.62 $86,823,133.62 $90,903,133.62 $96,003,133.62 $101,103,133.62 $107,223,133.62 $111,303,133.62
Effective Tax Rate on Taxing Units Rate and % of Total
Participation in TIF contribution Contribution
City of Kennedale (0.7225 @ 100%)$0.01 $0.00 $0.00 $9,031.25 $30,367.64 $58,003.27 $85,638.89 $113,274.52 $153,806.77 $186,969.52 $223,817.02 $269,876.39 $315,935.77 $365,679.89 $406,212.14 $435,690.14 $472,537.64 $509,385.14 $546,232.64 $586,764.89 $627,297.14 $656,775.14 $693,622.64 $730,470.14 $774,687.14 $804,165.14 $9,056,240.84
Tarrant County (0.264 @ 75%)$0.00 $0.00 $0.00 $2,475.00 $8,322.20 $15,895.70 $23,469.20 $31,042.70 $42,150.50 $51,238.70 $61,336.70 $73,959.20 $86,581.70 $100,214.00 $111,321.80 $119,400.20 $129,498.20 $139,596.20 $149,694.20 $160,802.00 $171,909.80 $179,988.20 $190,086.20 $200,184.20 $212,301.80 $220,380.20 $2,481,848.70
Tarrant County Health District (0.227807 @ 50%)$0.00 $0.00 $0.00 $1,423.75 $4,787.37 $9,144.04 $13,500.72 $17,857.39 $24,247.18 $29,475.19 $35,284.09 $42,545.22 $49,806.34 $57,648.36 $64,038.15 $68,685.27 $74,494.17 $80,303.07 $86,111.97 $92,501.76 $98,891.55 $103,538.67 $109,347.57 $115,156.47 $122,127.15 $126,774.27 $1,427,689.73
Tarrant County College (0.14897 @ 50%)$0.00 $0.00 $0.00 $936.25 $3,148.15 $6,013.07 $8,878.00 $11,742.92 $15,944.81 $19,382.72 $23,202.62 $27,977.50 $32,752.37 $37,909.24 $42,111.13 $45,167.05 $48,986.95 $52,806.85 $56,626.75 $60,828.64 $65,030.53 $68,086.45 $71,906.35 $75,726.25 $80,310.13 $83,366.05 $938,840.75
Total Annual Increment Created $0.00 $0.00 $13,866.25 $46,625.36 $89,056.09 $131,486.81 $173,917.54 $236,149.27 $287,066.14 $343,640.44 $414,358.31 $485,076.19 $561,451.49 $623,683.22 $668,942.66 $725,516.96 $782,091.26 $838,665.56 $900,897.29 $963,129.02 $1,008,388.46 $1,064,962.76 $1,121,537.06 $1,189,426.22 $1,234,685.66
Cumulative Increment Created $0.00 $0.00 $13,866.25 $60,491.61 $149,547.70 $281,034.51 $454,952.04 $691,101.31 $978,167.45 $1,321,807.88 $1,736,166.19 $2,221,242.38 $2,782,693.87 $3,406,377.09 $4,075,319.75 $4,800,836.72 $5,582,927.98 $6,421,593.54 $7,322,490.83 $8,285,619.85 $9,294,008.31 $10,358,971.07 $11,480,508.13 $12,669,934.36 $13,904,620.02 $13,904,620.02
NEW HOPE ROAD TIRZ
ECONOMIC PROFORMA 2014
Increment
2015
Increment
2016
Increment
2017
Increment
2018
Increment
2019
Increment
2020
Increment 2021 Increment 2022 Increment 2023 Increment 2024 Increment 2025 Increment
2026
Increment 2027 Increment 2028 Increment
2029
Increment 2030 Increment
2031
Increment
2032
Increment
2033
Increment
2034
Increment
2035
Increment
2036
Increment 2037 Increment
2038
Increment
Base
Year
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038
PROCEEDS
TIRZ Increment Created $0.00 $0.00 $0.00 $13,866.25 $46,625.36 $89,056.09 $131,486.81 $173,917.54 $236,149.27 $287,066.14 $343,640.44 $414,358.31 $485,076.19 $561,451.49 $623,683.22 $668,942.66 $725,516.96 $782,091.26 $838,665.56 $900,897.29 $963,129.02 $1,008,388.46 $1,064,962.76 $1,121,537.06 $1,189,426.22 $1,234,685.66
Proceeds on Debt Issued:
New Hope Road Debt 0 0 0 0 0 0 $3,000,000.00 $4,670,000.00 $3,000,000.00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Proceeds on EDC Loan 0 0 0 0 $ 500,000.00 200,000.00 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TWDB Loan 0 0 0 0 0 $ 800,000.00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total Annual Proceeds $0.00 $0.00 $0.00 $13,866.25 $546,625.36 $1,089,056.09 $3,131,486.81 $4,843,917.54 $3,236,149.27 $287,066.14 $433,131.39 $414,358.31 $485,076.19 $561,451.49 $623,683.22 $668,942.66 $725,516.96 $782,091.26 $838,665.56 $900,897.29 $963,129.02 $1,008,388.46 $1,064,962.76 $1,121,537.06 $1,189,426.22 $1,234,685.66
Debt Service:$0.00 $51,000.00 $51,000.00 $51,000.00 $91,000.00 $223,000.00 $427,000.00 $631,000.00 $763,000.00 $763,000.00 $763,000.00 $763,000.00 $763,000.00 $763,000.00 $763,000.00 $763,000.00 $763,000.00 $763,000.00 $763,000.00 $763,000.00 $763,000.00 $763,000.00 $763,000.00 $763,000.00
Carry Forward of Unspent Funds In PY $0.00 $0.00 $0.00 ($37,133.75)$458,491.61 $1,496,547.70 $4,537,034.51 $9,157,952.05 $11,967,101.32 $11,623,167.46 $11,293,298.85 $10,944,657.16 $10,666,733.35 $10,465,184.84 $10,325,868.06 $10,231,810.72 $10,194,327.68 $10,213,418.94 $10,289,084.50 $10,426,981.79 $10,627,110.81 $10,872,499.27 $11,174,462.03 $11,532,999.09 $11,959,425.31 $12,431,110.97
PROJECT COST BUDGET PROJECTION
Construction of New Hope Road
Surveying, Engineering, Right of Way Acquisition $2,000,000.00 $2,000,000.00 $2,000,000.00 $3,000,000.00
Construction $8,000,000.00 $8,000,000.00 $3,000,000.00 $2,000,000.00
Acquisition of Land For Commuter Rail Stop $500,000.00 $500,000.00 $100,000.00 $150,000.00 $150,000.00 $100,000.00
Sewer Extension
Surveying, Engineering $80,000.00 $80,000.00 $80,000.00
Easement $120,000.00 $120,000.00 $120,000.00
Construction $600,000.00 $600,000.00 $600,000.00
Parks and Trails
Engineering and Design $80,000.00 $80,000.00
Construction $670,000.00 $670,000.00 $670,000.00
Bloxom Park Component
Bloxom Park Road(county interlocal)$150,000.00 $150,000.00 $150,000.00
Sewer Extension $400,000.00 $400,000.00 $400,000.00
Water Extension $175,000.00 $175,000.00 $175,000.00
Total Cost $12,775,000.00 $12,775,000.00 $0.00 $200,000.00 $600,000.00 $0.00 $575,000.00 $2,150,000.00 $3,000,000.00 $3,000,000.00 $2,670,000.00 $100,000.00 $0.00 $0.00 $150,000.00 $0.00 $0.00 $150,000.00 $0.00 $0.00 $0.00 $100,000.00 $0.00 $0.00 $0.00 $0.00 $0.00
______________________Staff Report to the Honorable Mayor and City Council
Date: June 3, 2014
Agenda Item No: EXECUTIVE SESSION - A.
I. Subject:
The City Council will meet in closed session pursuant to Section 551.071 of the Texas Government Code
for consultation with the City Attorney pertaining to any matter in which the duty of the City Attorney under
the Texas Disciplinary Rules of Professional Conduct may conflict with the Open Meetings Act, including
discussion of any item posted on the agenda, legal issues regarding nonconforming uses, discussion of
zoning issues in the city, and legal issues regarding the preparation of development agreements.
II. Originated by:
Bob Hart
III. Summary:
At this time the city council will meet in executive session.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
None
VII. Alternative Actions:
VIII. Attachments:
______________________Staff Report to the Honorable Mayor and City Council
Date: June 3, 2014
Agenda Item No: EXECUTIVE SESSION - B.
I. Subject:
The City Council will meet in closed session pursuant to Section 551.087 of the Texas Government Code
to deliberate the offer of a financial or other incentive to a business prospect that the governmental body
seeks to have locate, stay, or expand in the City of Kennedale.
II. Originated by:
Bob Hart
III. Summary:
This topic will be discussed during executive session.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
None
VII. Alternative Actions:
VIII. Attachments:
______________________Staff Report to the Honorable Mayor and City Council
Date: June 3, 2014
Agenda Item No: RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY
PURSUANT TO EXECUTIVE SESSION, IF NEEDED - A.
I. Subject:
Discuss and consider approval of a Development Agreement with HM Real Estate Management, Ltd. for
the development and use of property along New Hope Road within the boundaries of Tax Increment
Reinvestment Zone #1.
II. Originated by:
City Council, City Council
III. Summary:
Bob Hart will provide information on this topic during the meeting.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
Approve
VII. Alternative Actions:
VIII. Attachments:
1.Development Agreement Development Agreement - Legal lindelow final version.wattachments.pdf
______________________Staff Report to the Honorable Mayor and City Council
Date: June 3, 2014
Agenda Item No: RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY
PURSUANT TO EXECUTIVE SESSION, IF NEEDED - B.
I. Subject:
Discuss and consider approval of Resolution No. 426, approving a TIRZ Development Agreement with
HM Real Estate Management, Ltd. for reimbursement of project costs for the construction of public
improvements in the Project and Finance Plan for the City of Kennedale Tax Increment Reinvestment
Zone #1.
II. Originated by:
Bob Hart
III. Summary:
Bob Hart will provide information on this item during the meeting.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
Approve
VII. Alternative Actions:
VIII. Attachments:
1.R426 - TIRZ Development Agreement R426 - TIRZ Development Agreement.pdf