PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
Body
SUBJECT: Title
Public hearing and first reading of an ordinance amending the Project Plan and Reinvestment Zone Financing Plan for the New Braunfels Downtown Tax Increment Reinvestment Zone #3; and other matters in connection therewith.
Header
DEPARTMENT: Economic and Community Development
Body
COUNCIL DISTRICTS IMPACTED: 1, 5
BACKGROUND INFORMATION:
In December 2021, the New Braunfels Downtown Tax Increment Reinvestment Zone Project & Finance Plan was finalized. The document identifies the establishment of the TIRZ 3, the project plan, eligible improvements, and a financing plan. Per Texas Tax Code Chapter 311.011(e), the TIRZ Zone Board at any time may adopt an amendment to the Project and Financing Plan consistent with the requirements and limitations of the Tax Code. The amendment takes effect on approval by the governing body of the municipality that created the zone.
This amendment includes changes to update the existing land uses, project plan improvements, and eligible project costs within the Zone - all as set forth and further described in the amended Project and Financing Plan attached to this agenda item. These additional changes are made to accommodate potential incentives and the transfer of property as allowed by state law for the NBU downtown site redevelopment, more commonly known as the Mainzer project.
The Mainzer project is the name given to the proposed redevelopment of the downtown NBU site. In 2020-2021, NBU underwent an extensive RFQ and RFP process for potential acquisition and redevelopment of the site. NBU terminated the negotiations in 2022 and since that time, the city now owns the property and staff is recommending the restart of negotiations with the same development team selected through the NBU process without issuing a new RFP. NBU’s process was in depth and comprehensive and yielded a final selection that received the support of the selection team and other stakeholders.
The City intends to restart negotiations with the development team that could include the possible conveyance of the newly acquired property through a sale, lease or grant. Under Texas Local Government Code, Chapter 272, the law provides for public land conveyances without notice and bidding requirements in certain instances. Specifically, Section 272.001(b)(6) provides the ability to enter exclusive negotiations with the previously selected developer if the property is within a Tax Increment Finance Zone and is developed consistent with the TIRZ project plan as adopted by the city for the zone.
This action amends the project plan to include the reference specifically to a hospitality project within the project and finance plan to provide for the exception to exclusively negotiate as allowed by state law.
The TIRZ 3 Board approved a resolution approving these changes at its September 11, 2024 regular meeting.
ISSUE:
The existing TIRZ 3 Project and Finance Plan requires updates, and this ordinance adopts these amendments.
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
There is no fiscal impact for this item.
Recommendation
RECOMMENDATION:
The New Braunfels City Council approve the first reading of this ordinance to approve the amended changes to the Project and Financing Plan.