|During a City Council retreat on Friday, December 15, 2017, Council unanimously reaffirmed their support to create a Tax Increment Financing (TIF) zone in the area surrounding the Baylor Medical Center at Garland facility, despite the fact that the hospital announced that it would close on February 28, 2018. Staff then began working with a consultant to establish a preliminary financing plan for the proposed zone, as well as drafted an ordinance for Council consideration.
On April 3, 2020, Council approved the ordinance creating TIF Zone #3 and subsequently established a Board of Directors for the TIF Zone. The initial boundaries of the TIF Zone encompassed the Wilbow / Wyrick Farms and surrounding businesses located generally at Buckingham and Shiloh Road. However, Council had attentions to expand the boundaries once the fate of the Baylor Medical Center at Garland Facility was determined and the area hit a probable low taxable value. This strategy would ensure that the incremental increases in taxable values associated with the Wilbow / Wyrick Farms development would be captured for future use in the Zone while not burdening the TIF fund with reduced values and revenue associated with the Baylor Garland closure.
On April 3, 2020, the U.S. Department of Veterans Affairs (VA) acquired the former Baylor Hospital facility to increase its capacity to care for Veterans. This acquisition will make this property exempt from property taxes in 2021 and staff believes that Council could now expand the boundaries of the TIF Zone without hampering revenue growth within the TIF Zone.
On November 18, 2020, the Board of Directors for TIF Zone #3 meet to discuss expanding the boundaries and to create a Project and Financing Plan. A Project and Financing Plan is required by law in order to allow the City to utilize TIF funds on projects within the zone and is the primary responsibility of the Board of Directors for the TIF Zone.
The Board unanimously approved recommending to Council the expansion of the boundaries of the Zone to include the VA hospital and surrounding properties. In addition, a listing of projects was approved by the Board to be included in the Project and Financing Plan and staff was instructed to complete the required schedules outlined in Chapter 311 of the Tax Code for Council to formally consider.
A Catalyst Area Study is currently being conducted in the area that will provide the City with additional information to develop an overall strategy in the area and will more than likely yield additional opportunities to utilize the revenue generated within the TIF Zone on new projects. This study is scheduled to be completed in the spring of 2021. Therefore, the Board wanted to ensure tha the Project and Financing Plan was not too specific on projects to be completed in the area but still meet the requirements outlined in the tax code. This strategy would allow for the framework for the formal document to be in place while allowing the Board / Council to make timely adjustments to the Plan at a future date.
Therefore, the below categories were ultimately decided on and were generated from the Preliminary Project and Financing Plan approved by Council on April 3, 2018.
|Wilbow Development Agreement Reimbursement
|Trail Design and Construction
|Screening Wall Replacement
|Public Infrastructure Improvements
The draft Project and Financing Plan is attached to this agenda item for Council review.