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OKAY.[1. Call Meeting to Order and Announce that a Quorum is Present]
GOOD EVENING EVERYBODY.IT IS 6:00 PM ON JULY 28TH, 2026, AND WE'LL CALL TO ORDER THIS MEETING OF THE TOWN OF ADDISON TAX INCREMENT REINVESTMENT ZONE, UH, BOARD OF DIRECTORS MEETING.
WE DO HAVE A QUORUM OF THE COUNCIL PRESENT WITH ALL MEMBERS IN ATTENDANCE THIS EVENING,
[2.a. Present, discuss, and consider action on the recommendation of the Projects and Financing Plan for Tax Increment Reinvestment Zone #1.]
AND WE'LL GO RIGHT INTO ITEM NUMBER TWO, DISCUSSION AND ACTION TWO A PRESENT, DISCUSS, AND CONSIDER ACTION ON THE RECOMMENDATION OF THE PROJECT AND FINANCING PLAN FOR TAX INCREMENT REINVESTMENT.UH, GOOD EVENING, UH, MAYOR, COUNCIL AND TURS, NUMBER ONE, BOARD THE INAUGURAL MEETING OF THIS TOURS BOARD, UM, WAYNE EMERSON, DIRECTOR OF ECONOMIC DEVELOPMENT.
AND, OH, I NEED THIS RIGHT HERE.
SO THIS EVENING, UM, THIS IS A CONSIDERATION OF THE ORDINANCE THAT IS GOING TO APPROVE THE FINAL PROJECT AND FINANCING PLAN FOR UHT BOARD NUMBER ONE.
UM, SO THE LAST COUNCIL MEETING, UH, COUNCIL APPROVED THE CREATION ORDINANCE, WHICH, UH, CREATED THESE ITEMS. IT ESTABLISHED THE BOUNDARY OF THE ZONE.
IT ESTABLISHED THE TERM, WHICH IS 30 YEARS.
IT ESTABLISHED THE PARTICIPATION RATE, WHICH, UH, IS A STAIR STEP METHOD.
YEARS ONE THROUGH 10 WOULD BE 65% YEARS, 11 THROUGH 20.
IT'S 50, OR I'M SORRY, UM, YEARS ONE THROUGH 10 AT 80% IN YEARS, 11 THROUGH 20 AT 65%, AND THEN THE FINAL 10 YEARS AT 50%.
AND THEN IT ESTABLISHED THE MAKEUP OF THE BOARD, WHICH IS HERE, THE CITY COUNCIL.
SO THOSE TWO BODIES WOULD, WILL BE THE SAME.
AND THEN LASTLY, YOU APPROVED THE PRELIMINARY FINANCING PLAN, WHICH IS HOW WE'RE HERE THIS EVENING TO APPROVE THE FINAL PROJECT AND FINANCING PLAN.
IS THERE A QUE I'M SORRY, DID YOU HAVE A QUESTION? OH, NO.
SO, UH, HOW DID WE GET HERE? UM, REWIND BACK TO NOVEMBER 4TH, 2025 AT THE UHT NUMBER ONE WORK SESSION.
COUNCIL GAVE DIRECTION TO PREPARE, UH, THAT INITIAL PROJECT AND FINANCING PLAN, UH, THAT WAS TEMPORARILY DEFERRED.
AS WE MOVED THROUGH, UH, SOME FUNDING ITEMS RELATED TO DART, UH, ON JULY 7TH, COUNCIL PROVIDED DIRECTION AGAIN TO MOVE FORWARD THAT PRELIMINARY PROJECT AND FINANCING PLAN, THE ANALYSIS, UM, PARTICULARLY, UH, REGARDING THE STAIR STEPPED, UM, PARTICIPATION RATE.
UM, AND THEN LAST COUNCIL MEETING AT JULY 14TH, WE HAD THE CREATION ORDINANCE, UH, WITH ALL THE ITEMS THAT WE JUST SPOKE ABOUT.
SO WHY DO WE CREATE A TOURS? UH, THIS STIMULATES PRIVATE DEVELOPMENT.
IT BENEFITS AN AREA AT A LARGE INSTEAD OF A SINGLE PROJECT, UH, WHICH IN TURNS ALLOWS YOU TO LEVERAGE FUNDS THAT CAN BE USED, UM, ON A SINGLE PROJECT.
AND IT ACTS AS A GREAT MARKETING TOOL FOR POTENTIAL DEVELOPERS.
UM, AND IT DEMONSTRATES THE CITY'S LONG-TERM COMMITMENT TO A SPECIFIC AREA FOR ITS CONTINUED, UH, ADVANCEMENT AND GROWTH.
REAL, REAL QUICK, YOU'VE ALL SEEN THIS SEVERAL TIMES NOW, BUT, UM, THE TAX INCREMENT FINANCING IS NOT A NEW TAX ON THE ZONE.
WHAT IT DOES IS IT FREEZES, UH, THE BASE YEAR.
IN THIS CASE IT WILL BE JANUARY OF 2027.
SO ALL OF THAT, A VALOREM VALUE IS FROZEN AND WILL REMAIN IN THE GENERAL FUND.
UH, THE INCREMENT WILL THEN FLOW BASED ON THAT PARTICIPATION RATE AT, UH, THESE FIRST 10 YEARS, 80% INTO THE TURS, AND THE REMAINING 20% WOULD STAY WITHIN THE GENERAL FUND.
AND THAT AT THE END OF THAT ESTABLISHED 30 YEARS, ALL OF THOSE FUNDS, UH, WILL RETURN BACK TO THE GENERAL FUND.
AND, UH, THERE'S TWO WAYS THAT THAT GROWS.
THERE IS NEW CONSTRUCTION, THAT'S ALL NEW INCREMENT OR WHAT WE CALL ORGANIC GROWTH, OR WHICH IS APPRECIATION ON THE BASE.
SO THAT CREATION PROCESS IS REALLY THE TWO STEP, THE FIRST BEING THAT CREATION ORDINANCE.
AND HERE WE'RE AT THAT, UH, SECOND STEP, THE TS PROJECT AND FINANCING PLAN.
UM, SO THIS, THIS PARTICULAR MEETING, THIS IS A MEETING OF THE TURS BOARD.
UH, SO WHAT WE ARE LOOKING FOR WOULD BE A RECOMMENDATION, AND THEN LATER IN COUNCIL YOU'LL ACTUALLY APPROVE, UH, THE ORDINANCE OF THAT FINAL PROJECT PLAN.
SO ADDISON JUNCTION, THE TOD, IS THE CATALYST PROJECT THAT WE'VE IDENTIFIED FOR, UH, ADDISON TOURS.
UH, NUMBER ONE, UH, HOW WERE THE BOUNDARIES SELECTED? UH, WE LOOKED AT THREE CRITERIA INCREMENT PRODUCING AREAS, SO AREAS THAT WE ANTICIPATED EITHER NEW DEVELOPMENT, UM, OR REDEVELOPMENT THAT WOULD CREATE THAT NEW INCREMENT, UH, AREAS THAT WOULD BE IN NEED OF REINVESTMENT FOR
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THE, THE REINVESTMENT, UH, IN THE TURS NAME.AND THEN THIRD, UM, A SALES TAX GENERATING PROPERTIES.
THE TOWN ITSELF IS NOT PLEDGING ANY OF ITS SALES TAX WITHIN THE ZONE, BUT THERE IS A PENDING ILA WITH DART IN WHICH THEY WOULD PLEDGE THEIR SALES TAX.
SO WE DID LOOK AT STRATEGICALLY AREAS THAT WOULD PRODUCE SALES TAX THERE.
SO, UH, THAT, UH, PENDING ILA THERE IS ON JUNE 29TH, THERE IS A APPROVED ILA THAT DART HAS, HAS A BLANKET APPROVAL ON, UM, THOSE REQUIREMENTS THAT YOU MUST HAVE A TRANSIT ANCHOR, WHICH WE DO HAS TO BE USED FOR ELIGIBLE USES IN CHAPTER 4 5 2.
ESSENTIALLY, UH, THINGS THAT ARE NEEDED TO RUN A TRANSIT AGENCY.
SO THAT CAN BE INFRASTRUCTURE AND CAN EVEN BE, UH, SOME SERVICES RELATED TO THAT.
UH, THAT DARK CONTRIBUTION IS AT 60%.
UM, FOR OUR TRANSIT ACRE, WE GOTTA HAVE A CITY MATCH, WHICH WE DO NOT ANTICIPATE, UM, ANY ISSUES.
BUT THOSE WOULD BE AN AUDIT EVERY FIVE AND 10 YEAR TO MAKE SURE THAT, UH, THE CITY HAS CONTRIBUTED EQUAL OR MORE FUNDS INTO, INTO THET.
AND IF FOR SOME REASON THERE WOULD NOT, THERE WOULD BE A TRUE UP, UH, TO, TO THOSE MATCHING FUNDS.
AND THE IMPROVED TERM IS 10 YEARS.
BUT AS WE MENTIONED BEFORE, UH, STAFF'S HAVING ONGOING DISCUSSIONS WITH DART, UH, FOR, UM, SPECIFIC AGREEMENT TO ADDISON AND ADDISON TOURS.
NUMBER ONE, I, SO THESE ARE THE PROPOSED BOUNDARIES WITH AN ESTIMATED BASE FILL, UH, BASE YEAR VALUE OF ABOUT $1.5 BILLION.
THESE ARE THE PROJECTED TAX REVENUES HERE.
UM, YOU CAN SEE ULTIMATELY WHEN THAT STAIR STEP, UH, METHOD PLAYS OUT OVER 30 YEARS, IT'S ABOUT 184 MIL, UH, MILLION DOLLARS INTO THE TURS AND ABOUT 175 MILLION THAT WOULD BE GENERATED BACK TO, UM, THE, THE GENERAL FUND.
AND THEN ALSO THE, THE NOTE HERE, THERE WAS A QUESTION ON THE LAST, UH, COUNCIL MEETING, UH, PENDING THAT DART ILA AT 60%.
UH, BASED ON THESE PROJECTIONS, IT WOULD BE 2.6 MILLION OF THE DART PARTICIPATION OVER OVER 30 YEARS.
'CAUSE THOSE, UH, NUMBERS ARE A 30 YEAR PROJECTION NUMBER.
SO THIS CITY COUNCIL IS HERE, IS SERVING AS THE BOARD OF DIRECTORS.
UM, AND THIS BOARD IS RESPONSIBLE FOR OVERSEEING THE IMPLEMENTATION OF THE TOURS, PROJECT PLAN AND FINANCING PLAN, AND MAKING A RECOMMENDATION TO COUNCIL.
AND PART OF THAT FINANCING PLAN, UH, IS THESE ARE ALL THE ELIGIBLE PROJECT COST.
AND SO THESE WERE DONE BASED OFF ESTIMATIONS ON WHAT WE KNOW THAT ADDISON JUNCTION NEEDS.
AND THEN JUST, UM, SORT OF BACKING INTO OTHER INFRASTRUCTURE NEEDS WITHIN THE AREA AND SIMILAR PROJECT COSTS, UH, ACROSS DIFFERENT TOURS.
DISTRICTS, THE IMPORTANT THING TO REMEMBER ABOUT THESE PROJECT COSTS AS THEY ARE ESTIMATES, UH, THEY WILL BE DIFFERENT OVER 30 YEARS, BUT THE TURS BOARD AND CITY COUNCIL CAN REALLOCATE BETWEEN ANY OF THESE BUCKETS AT ANY TIME.
SO THEY'RE, THESE, THESE, UH, THESE ARE REALLY JUST ESTIMATES AND, AND NOT LOCKED INTO THOSE NUMBERS.
SO, UM, IN THE PROPOSED ORDINANCE, UM, THE TURS BOARD HERE WOULD RECOMMEND THE PA UH, THE APPROVAL OF THIS FINAL PROJECT, UM, AND FINANCING PLAN.
UH, CITY COUNCIL WOULD LATER, UH, PASS THE ORDINANCE.
WE'LL CONTINUE DISCUSSIONS WITH DART, AND THEN ULTIMATELY WE WILL DELIVER ALL THE NECESSARY DOCUMENTS TO THE TEXAS COMPTROLLER'S OFFICE.
SO WITH THAT, WE WOULD, UH, RECOMMEND APPROVAL OF THE FINAL PROJECT AND FINANCING PLAN, UH, OR ADDISON TAX INCREMENT REINVESTMENT ZONE NUMBER ONE, AND PROVIDING EFFECTIVE DATE OF JULY 28TH.
AND ANY QUESTIONS? THANK YOU, WAYNE.
QUESTIONS FROM ANYBODY?
AUGUST, RIGHT? I'M SORRY, THE MEETING IS IN AUGUST.
THERE'S A COMMITTEE MEETING IN, IN AUGUST, AND THEN THERE WOULD BE, UM, IN AUGUST.
AT THE END OF AUGUST, I BELIEVE IT'S THE 28TH, THEY WOULD HAVE THEIR FINAL BOARD MEETING FOR THAT APPROVAL.
AND WE WOULD KNOW SOMETHING THEN, OR WOULD WE NOT KNOW SOMETHING UNTIL THE SEPTEMBER DATE THAT WE WERE TOLD LAST WEEK OR WEEK BEFORE LAST? WELL, I THINK WE WOULD, I MEAN, IT DEPENDS ON WHEN WE ACTUALLY GET ON THE AGENDA, BUT PENDING RIGHT NOW, IF WE CAN GET EVERYTHING GOING, THERE WOULD BE THE COMMITTEE MEETING IN EARLY AUGUST, AND THEN THE FINAL, UH, APPROVAL AT THE END OF AUGUST, WHICH I THINK IS THE 28TH, IF I RECALL CORRECTLY.
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OUR DATE.I THINK IT'S, IS IT THE SAME DATE? OKAY.
WHY, WHY ARE WE RUSHING TO DO THIS NOW? INSTEAD OF WAITING TO SEE IF DART WHAT DART DOES, WHAT, WHAT, WHAT IS THE BENEFIT OF DOING IT NOW RATHER THAN AFTER THEY APPROVE AN ILA AND WE KNOW WHAT THE FIGURES WILL BE? UM, I DON'T KNOW IF IT'S A RUSH, BUT I THINK THERE IS A RECOMMENDATION TO GO AHEAD AND CREATE THE TURS FOR THE FUNDING OF AS INJUNCTION EITHER WAY, UM, TO ALL OF THESE REASONS WE LISTED ABOVE THAT IT'S AN, A CONTINUED INVESTMENT FOR THE TOWN WITHIN THE ZONE.
RIGHT? WELL, AND CERTAINLY WE WOULD HOPE THAT DART WOULD COME ALONG WITH US.
WELL, IT HOPE, HOPE IN ONE HAND.
AND THE, UM, TOURS, AS I'VE SAID BEFORE, ANY ECONOMIST WILL TELL YOU IT'S USELESS WITHOUT A PARTNER.
I'M ALL FOR A PARTNER IN THIS TOURS.
IF WE CAN GET SOME OF DART'S MONEY ALL FOR IT, 30 YEARS IS WAY TOO LONG.
IF THEY'RE ONLY GONNA PARTNER FOR 10, WHY AREN'T WE GOING AHEAD WITH A 30 INSTEAD OF A 10 AND THEN REDOING ONE IN 10? IT JUST SEEMS LIKE WE'RE GETTING OUT AHEAD OF OUR SKIS ON THIS.
AND IT'S, IT'S TOO LONG AND IT'S TOO EARLY TO TELL IF DART'S GONNA DO ANYTHING.
SO WAS THERE A REQUIREMENT FROM DART TO HAVE THE TOURS IN PLACE AT SOME DEADLINE FOR THEM TO PARTICIPATE? THERE WAS PRIOR, SO WE HAD A MEETING PRIOR AND IT WAS JANUARY, BUT I DON'T KNOW EXACTLY WHAT HAPPENED.
BUT BASICALLY THEY, I'M, I'M SURE IT HAD TO DO WITH ALL OF THE ISSUES THAT CAUSED US TO LAY THIS AS WELL.
THAT ESSENTIALLY NOW IT'S, YOU CAN GET IN AND THEN WITHIN THAT 10 YEAR TERM WINDOW AS LONG ASS WITHIN THAT 10 YEAR TERM WINDOW, THEN, THEN YOU GET ADDITIONAL 10 YEARS UNDER THE APPROVED AGREEMENT.
SO IF, IF WE, UH, WE CAN CHANGE ANYTHING ABOUT, ABOUT THE, THE WAY THE TERMS IS STRUCTURED BY COUNCIL VOTE, CORRECT.
SO IF, IF COUNSEL DECIDES THAT, UH, IT'S IN BETTER FAVOR TO CHANGE IT TO 10 YEARS IN THE FUTURE, UM, THAT'S, THAT GIVES ME PLENTY OF COMFORT TO BE ABLE TO, TO RE REDO THIS.
ANY OTHER QUESTIONS, COMMENTS, OR MOTION? ALL MOTION TO APPROVE WHAT'S APPROVE THE, THE TERRA, UH, RE UH, TAX INCREMENT REINVESTMENT ZONE ONE ITEM TWO A.
DO WE HAVE MOTION AND SECOND TO ANY OTHER DISCUSSION? ALL IN FAVOR? AYE.
AND, UM, WITH THAT, UH, DO, IS THERE ANY OTHER BUSINESS, UH, WITH THE, UH, WITH THE BOARD? I ALL, WAS IT, UH, SIX TO ONE? SIX TO ONE, YES.
AND WITH THAT, THAT'S THE, UH, LAST ITEM ON OUR BOARD, BOARD OF DIRECTORS MEETING.
AND SO WE'LL ADJOURN THIS MEETING AND WE'LL GO INTO OUR WORK SESSION AT SIX 30.