PRESENTER: Presenter
Jared Werner, Assistant City Manager
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SUBJECT: Title
Discussion and consider approval of a resolution to adopt an amendment to project plan and reinvestment zone financing plan for reinvestment zone number one, City of New Braunfels, Texas; recommending that the City of New Braunfels approve the amendment to the project plan and reinvestment zone financing plan; approving and executing a reimbursement agreement and an incentive agreement; recommending that the City of New Braunfels, Texas approve a reimbursement agreement and an incentive agreement; and other matters in connection therewith.
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DEPARTMENT: City Manager’s Office
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COUNCIL DISTRICTS IMPACTED: 4
BACKGROUND INFORMATION:
The resolution supplements the existing Tax Increment Reinvestment Zone Number One (TIRZ #1) to accommodate public improvement costs and proposed grants associated with the Top Golf project. The scope of the project includes the relocation and/or construction of public infrastructure needed to accommodate the Top Golf development such as water, drainage, sewer and electrical work. The TIRZ board will enter a reimbursement agreement with the developer/owner of the project for the public improvement costs in an amount not to exceed $1,500,000. and as further detailed in Exhibit B of the attached resolution. All funding sources available to the TIRZ can be leveraged to support these costs.
Additionally, the TIRZ board intends to enter an incentive agreement with Topgolf USA NBR, LLC, to provide a grant in an amount not to exceed $1,500,000 from funds held in the Tax Increment Fund, consistent with the terms set forth in the incentive agreement. The incentive payments will be supported entirely by the City of New Braunfels property tax contributions to the TIRZ, given that the sales taxes and county contributions are limited to public improvements. The incentive agreement is attached as Exhibit C.
ISSUE:
The action would approve a resolution to increase the total estimated project costs related to public improvements and incentives financed by the TIRZ.
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
[Enter Objectives/Performance Measures Supported]
FISCAL IMPACT:
The total estimated funding contribution from the TIRZ is $3,000,000.
Recommendation
RECOMMENDATION:
Staff recommends adoption of the resolution.