[00:00:04] GOOD EVENING. I'D LIKE TO CALL THE MEETING FOR THE CITY OF PRINCETON FOR THE TAX INCREMENT REINVESTMENT ZONE BOARD. [A. CALL TO ORDER-MAYOR PRO TEMPORE] FIRST ORDER OF BUSINESS IS AT 5:02 P.M. ON MONDAY, MAY 12TH, 2025. FIRST ORDER OF BUSINESS. ROLL CALL. AND I'M PRESIDENT, OF COURSE. AND THE NEXT ITEM IS CONSENT AGENDA. [C. CONSENT AGENDA] ALL CONSENT AGENDA ITEMS LISTED ARE CONSIDERED TO BE ROUTINE BY THE CITY COUNCIL WILL BE ENACTED BY ONE MOTION. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS UNLESS A COUNCIL MEMBER SO REQUESTS, IN WHICH EVENT THE ITEM WILL BE REMOVED FROM THE CONSENT AGENDA AND CONSIDERED IN ITS NORMAL SEQUENCE ON THE AGENDA. FIRST ITEM IS C1 TIRZ 2025-003. CONSIDER APPROVING THE FOLLOWING TIRZ BOARD MEETINGS AND MINUTES TAKEN. AND TAKE APPROPRIATE ACTION OF THE APRIL 28TH, 2025 MEETING. MOTION TO APPROVE. I'LL SECOND. OKAY. MOTION MADE AND SECONDED. MOTION CARRIED SIX ZERO. NEXT ITEM IS THE REGULAR AGENDA ITEM D1 [D. REGULAR AGENDA] 2025-0512TR TO CONSIDER RESOLUTION ADOPTING AMENDMENTS TO THE SECOND AMENDED AND RESTATED PROJECT PLAN AND FINANCING PLAN FOR TAX INCREMENT. THANKS, AMBER. I WAS READING FROM THAT. I'M READING FROM THAT AND RESTATED PROJECT PLAN AND FINANCING PLAN FOR THE TAX INCREMENT REINVESTMENT ZONE. NUMBER SIX, CITY OF PRINCETON, TEXAS AND TAKE APPROPRIATE ACTION. GOOD AFTERNOON BOARD. JEFF GALBUS WITH MCCALL PARKHURST HORTON WITH THE CITY'S BOND COUNCIL. THE ITEM BEFORE YOU THIS AFTERNOON, EARLY EVENING, IS FINAL APPROVAL OF THE TIRZ PLAN FOR REINVESTMENT ZONE NUMBER SIX. THIS RELATES TO THE SOUTHRIDGE PUBLIC IMPROVEMENT DISTRICT. AS A REMINDER, SOUTHRIDGE WAS CREATED IN 2022. IT'S A 245 ACRE RESIDENTIAL DEVELOPMENT. WE HAVE COMPLETED ASSESSMENT LEVIES AND BOND TRANSACTIONS FOR PHASES ONE AND TWO. A BOND SALE WAS ORIGINALLY SCHEDULED FOR TODAY THAT HAS NOW BEEN PUSHED TO MAY 27TH. AS YOU ALL UNDERSTAND AS IT RELATES TO IMPROVEMENT AREA NUMBER THREE, IT'S ALWAYS IMPORTANT TO REMEMBER WHILE THE PIDS AND TIRZ DEFINITELY RELATE, THEY ARE THEY ARE SEPARATE ITEMS. WE DO HAVE PIDS WITHOUT TIRZ. SOME CITIES HAVE TIRZ WITHOUT PIDS. AND SO IN THIS CASE THEY DO RELATE, BUT THEY ARE SEPARATE ITEMS. JUST AS A REMINDER FOR EVERYONE, THE TIRZ OVERLAYS THE DISTRICTS IN THE CITY OF PRINCETON. THE GOAL THERE IS THE INCREMENTAL VALUE RISES WITHIN THESE DISTRICTS. THE CAPTURED APPRAISED VALUE WITHIN THE TIRZ IS USED TO BUY DOWN THE ASSESSMENTS. AGAIN, AS YOU ALL ARE AWARE, THE IDEA HERE IS TO KEEP THESE ASSESSMENTS AS UNIFORM AS POSSIBLE WITH SIMILAR DEVELOPMENTS WITHIN THE CITY. THE TIRZ HAVE BEEN CREATED IN SOUTHRIDGE. SINCE THAT PID WAS ORIGINALLY CREATED. EVERY TIME WE DO A NEW IMPROVEMENT AREA WITHIN SOUTHRIDGE A NEW SUB ZONE IS ESTABLISHED OVER THAT IMPROVEMENT AREA. SO WE'RE DEALING WITH IMPROVEMENT AREA THREE. SO THIS DEALS WITH SUBZONE NUMBER THREE TO OVERLAY THAT. SO AGAIN, YOU HAVE BEFORE YOU AND THE CITIZENS HAVE AVAILABLE ON ONLINE THE SECOND AMENDED AND RESTATED PROJECT IN FINANCE PLAN AS RELATES TO THE TIRZ. THESE ARE UPDATED ANNUALLY. AS WELL AS ANY TIME A BOND FINANCING OR ANY CHANGES ARE MADE TO THE TIRZ PLANS. THIS IS REALLY THE LIVING GOVERNING DOCUMENT FOR THE TIRZ. LIKE I SAID, THEY DO CHANGE. AS THE DEVELOPMENT PROGRESSES, TAX VALUES BECOME MORE CLEARLY KNOWN AND BOND SALES ARE DONE. SO IN THIS CASE, WITH THE FINAL PLAN STATES THE PROJECT COSTS FOR IMPROVEMENT. AREA NUMBER THREE. LIKE SOME OTHERS, 45% OF THE TIRZ INCREMENT IS WHAT'S GOING TO BE COMMITTED TO BUY DOWN THE ASSESSMENTS. AND SO AGAIN THAT'S DEPENDENT ON THE LOT SIZE WHICH JUST LIKE THE OTHER. SO $606 TO $737 ON AN ANNUAL BASIS AGAIN DEPENDING ON THE LOT SIZE WITH THAT INCREMENT BEING USED TO REDUCE THE ASSESSMENTS. ALSO, PLANS ARE PREPARED LIKE THE SAPS BY YOUR TIRZ ADMINISTRATOR, BUT IF YOU HAVE ANY QUESTIONS ON THIS OR THE LEGALS BY ALL MEANS PLEASE LET ME KNOW. [00:05:09] THIS ALSO IS SCHEDULED FOR COUNCIL ACTION TONIGHT AS WELL. BUT OTHERWISE HAPPY TO ANSWER ANY QUESTIONS YOU ALL HAVE. THANK YOU. ANY QUESTIONS? IF NOT, I'LL ENTERTAIN A MOTION. I DO HAVE SOME QUESTIONS. YES, MA'AM. WHEN IT COMES TO THESE SORTS OF AGREEMENTS. THE BUILDERS ARE. OR THE DEVELOPERS ARE RESPONSIBLE FOR THEIR OWN SUBCONTRACTORS AND THE PEOPLE THEY BRING IN TO DO THE WORK. WHAT HAPPENS IF THOSE SUBCONTRACTORS ARE NOT MEETING OUR STANDARDS AND WE GO TO VOTE. SO I CAN GIVE YOU MY SPECULATION. BEAR IN MIND, HOWEVER, I AM THE CITY'S BOND COUNCIL, SO THAT IS SOMEWHAT OUTSIDE MY WHEELHOUSE, AND I WOULD HAVE TO DEFER TO CITY ATTORNEY ON THAT. BUT THAT WOULD BE SOMETHING THAT COUNCIL, THE CITY ATTORNEY, WOULD HAVE TO MAKE SURE AS IT RELATES TO THE TOURS ITSELF, IT DOES NOT GET INTO SUBCONTRACTING OR REALLY EVEN THE DEVELOPMENT. IT'S MORE OF A FINANCIAL TOOL, REGARDLESS OF WHO THE DEVELOPER IS AND WHERE THE DEVELOPMENT GOES. SOME CITIES HAVE TOURS THAT HAVE DONE OUTPERFORMED EXPECTATIONS, AND SOME CITIES HAVE TOURS THAT ARE BASICALLY DEFUNCT. AND SO THOSE PLANS THEY WILL CHANGE. AND THE PRIMARY DRIVER THERE IS GOING TO BE THE TAX VALUE WITHIN THE TOURS SINCE IT WAS CREATED. SO I MEAN, IF YOU GET JERRY JONES AND FAMILY VERSUS ME TO DEVELOP IT. IT'S THE PLANS AREN'T DEPENDENT ON SUBCONTRACTING ITSELF. OBVIOUSLY, A SUCCESSFUL DEVELOPMENT IS GOING TO MAKE YOUR VALUES GO UP VERSUS AN UNSUCCESSFUL DEVELOPMENT. AND IN YOUR EXPERIENCE, HOW COMMON IS IT FOR CITIES TO HAVE AS MANY TIRZ AS WE HAVE? Y'ALL DEFINITELY DO HAVE MORE THAN THE NORM. YOU DO? YOU KNOW, DALLAS, FOR EXAMPLE. BUT DALLAS COVERS A MASSIVE GEOGRAPHICAL AREA COMPARED TO Y'ALL. Y'ALL'S ARE VERY LIMITED IN THEIR PURPOSES. I CAN TELL YOU THAT SOME OF YOUR NEIGHBORS. I'M TRYING TO THINK 5 TO 7 THAT SO I GUESS Y'ALL ARE ON SIX. SO AGAIN, NOT UNHEARD OF. BUT WHILE YOU MAY HAVE A LOT NUMBER, IT REALLY DEPENDS WHAT THE PURPOSE OF THE TIRZ WAS CREATED FOR. DOES THAT ANSWER YOUR QUESTION? I DON'T HAVE A FULL SURVEY OF THEM. BUT YEAH, I WAS JUST CURIOUS BECAUSE MCKINNEY ONLY HAS TWO. AND SO I WAS JUST TRYING TO UNDERSTAND THE DIFFERENCE IN THE AMOUNT. SURE, SURE. THANK YOU. UNDERSTOOD. YEAH. AND I DO HAVE A QUESTION. I SEE THAT WE'RE AMENDING THE AGREEMENTS, AND THIS IS AMENDING THE SECOND AMENDMENT. HOW COME WE KEEP ON AMENDING THE AGREEMENT? IS THE AGREEMENTS CHANGING COMPARED TO WHEN THEY WAS FIRST ADOPTED IN 22 AND WERE BASICALLY APPROVING THE AMENDMENT AND NOT THE ACTUAL AGREEMENT, AND WE'RE JUST ADDING TO THE ORIGINAL AGREEMENT AT THIS POINT? SURE. SO GOOD QUESTION. SO IT ISN'T PER SE AN AGREEMENT BECAUSE THERE'S NO COUNTERPARTIES TO THIS. SO IT IS A IT'S A PLAN WE AMEND AND RESTATE THE PLAN RATHER THAN AMEND IT BECAUSE IT MAKES IT EASIER FOR THE READERS. ANYONE WHO CAN JUST PICK UP THIS COPY AND KNOW THAT THIS IS THE LATEST AND GREATEST IF WE AMEND IT, YOU HAVE TO PUT THOSE AMENDMENTS WITH THE ORIGINAL AND IT CAN GET VERY DIFFICULT TO READ. SO ALL THIS DOES LIKE I SAID, THESE ARE REQUIRED TO BE UPDATED ANNUALLY REGARDLESS IF WE DO ANY BONDS FOR ANY CITY WITH THE TIRZ HAS TO BE UPDATED ANNUALLY OR AMENDED. BUT WHENEVER WE DO, WE'RE NOT AMENDING ANY AGREEMENTS WITH ANY COUNTERPARTY. THERE'S NO LIABILITIES THAT THE CITY OR ANY DEVELOPER HAS UNDERTAKEN BASED ON THIS DOCUMENT. BUT WHAT IT DOES IS UPDATE AND REFLECT THE ACTUAL PLANS SINCE THE LAST TIME WE CHANGED IT. SO WE ORIGINALLY DID THIS WHEN WE DID THE SOUTHRIDGE PHASE ONE. THEN WE AMENDED IT WHEN WE DID SOUTHRIDGE PHASE TWO. SO NOW WE'RE ON SOUTHRIDGE PHASE THREE. SO THIS IS THE SECOND AMENDED AND RESTATED. AND WHAT IT DOES IS IT UPDATES THE PHASE ONE INFORMATION ON WHAT THE TAX BASE IS NOW SINCE TWO YEARS AGO, SINCE WE HAVE MORE RECENT TAX VALUES AND THEN THROWS IN THE DEVELOPMENT THAT'S SCHEDULED FOR PHASE THREE. AND THEN IF AND WHEN PHASE FOUR, FIVE AND SIX COME, IT WILL BE AMENDED AND RESTATED A THIRD, FOURTH, FIFTH TIME. AND ALL THESE PHASES ARE IN THE ORIGINAL AGREEMENT. SO WE ALREADY KNOW THAT HOW MANY PHASES WE'RE HAVING, WE'RE NOT ADDING PHASES INTO ONE AGREEMENT. [00:10:03] CORRECT. THAT'S RIGHT, THAT'S RIGHT. AND SO LIKE I SAID, THESE AS THEY AS THEY CHANGE THE IDEA IS TO MAKE IT CURRENT AND REFLECT IT. BUT I THINK WHAT YOU'RE ASKING IS, HAVE WE DONE ANYTHING IN HERE THAT CHANGES OBLIGATIONS ON ANYONE. AND THAT ISN'T THE CASE. THIS PUTS NO FINANCIAL OBLIGATIONS ON ANYBODY, NO DUTIES ON THE CITY, NOR ANY COUNTERPARTY. BUT WHAT IT DOES IS OKAY. IF WE CREATED A SUB ZONE 1 IN 2022, WE HAVE THREE YEARS OF TAX VALUES, HOME SALES AND ALL THAT THAT CAN UPDATE THE FINANCIALS OF IT. BUT THERE'S NO FINANCIAL OBLIGATIONS INCURRED WHATEVER ON THESE PLANS. IT'S JUST THE IDEA IS TIRZ IS, AS THEY GROW, PRODUCES A POT OF REVENUE THAT IS USED TO BE REINVESTED BACK IN. SO THIS IS MORE OF AN UPDATE TO THE AGREEMENT ON ACTUAL NUMBERS COMPARED TO GUESSTIMATES FROM WHEN IT WAS FIRST CREATED IN 22. IT IS AS IT RELATES TO THE SUBZONE PHASE THREE. YES, MAYOR. AND THEN AGAIN UPDATING PHASES ONE AND TWO. SO AT EACH PHASE IT WILL BE A NEW TIRZ. SO IF YOU'RE IF THEY DO THREE MORE PHASES THERE WILL BE THREE MORE TOURS. NO MA'AM. SO WE KEEP THE SAME TIRZ SIX. BUT WE JUST ADD IN A NEW SUBZONE. AND AGAIN THAT IS FOR SIMPLICITY. BECAUSE THEN IT KEEPING THESE DOCUMENTS STRAIGHT IN WHICH DEVELOPMENT THEY RELATE TO WOULD BE A NIGHTMARE. AND THIS IS ALREADY A LITTLE CHALLENGING AS IT IS. AND SO THE TOURS ENCOMPASSES THE ENTIRE PID AS IT'S CREATED. AND IS EACH POCKET OR PHASE DEVELOPS OPS. THAT SUBZONE THEN GETS ADDED AND FLESHED OUT IN THE CHURCH PLANS. IS THIS THE PREFERRED METHOD OF APPROVING THESE IS HAVING THEM SUBZONE THROUGH AMENDMENTS THIS WAY IT IS. IT REALLY IS. ESPECIALLY WITH OTHERS THAT HAVE THESE SUBZONES, BECAUSE IT JUST GETS EASIER TO TRACK RATHER THAN FOR EXAMPLE, WITH ALL THE DEVELOPMENTS YOU HAVE AND BY LAW, THE SUBZONE OR THE TIRZ ARE NUMBERED INCREMENTALLY. SO WE COULD END UP WITH SOUTHRIDGE HAVING CHURCHES THREE, SEVEN, NINE, TEN, 13 AND ANOTHER DEVELOPMENT. AND SO THIS REALLY ACTUALLY IS JUST IT'S AN EASIER WAY TO TRACK THEM AND KEEP IT STRAIGHT. IT DOES THE EXACT SAME THING IS THE OTHER WAY. THIS IS JUST MORE OF AN ORGANIZATIONAL IMPROVEMENT. ALL RIGHT. AND JUST FOR MY OWN CLARIFICATION, WHEN YOU SAY EASIER TO TRACK, IS THAT EASIER TO TRACK BY YOUR OFFICE, THE CITY, THE DEVELOPER OR ALL THREE? ALL THREE REALLY? THE CITY AND THE APPRAISAL DISTRICTS AS WELL, KNOWING THAT IF WE'RE DEALING WITH TIRZ SIX, REGARDLESS OF WHAT SUB ZONE WE KNOW WE'RE IN SOUTHRIDGE. AWESOME. THANK YOU. RATHER THAN EVERYONE HAVING A LIST AND YOU KNOW. YES, SIR. AND YOU SAID THAT TIRZ IS CREATED TO CREATE A BALANCE OR TO CREATE I GUESS THE PURCHASE PRICE TO MAKE THAT EQUAL TO WHAT THE NORM IS IN THE CITY. IT'S NORMAL TO HAVE TIRZ FOR RESIDENTIAL. YEAH. I MEAN, PRINCETON ISN'T THE ONLY CITY THAT THAT HAS THIS STRUCTURE BY ANY STRETCH. THERE'S A NUMBER OF OTHER NORTH TEXAS AND CENTRAL TEXAS CITIES THAT DO IT. IT'S AN OPTION OF LOCAL GOVERNANCE, RIGHT? I MEAN, THERE'S CITIES THAT WILL SAY NO TO ANY BIDS. AND THERE'S OTHER CITIES THAT, THAT, THAT WELCOME THEM. THE IDEA WITH THE TIRZ PLAN IS ONCE CITIES, CELINA WOULD BE A GREAT EXAMPLE BECAUSE THEY WERE THE ONES THAT STARTED AND THEN QUICKLY HAD SO MANY PIDS GET ESTABLISHED WHEN YOU START HAVING THEM, AND YOU HAVE COMPETITIVE HOME BUILDERS THAT ARE ALL TRYING TO HIT A TARGET MARKET. PLUS YOU HAVE FLUCTUATING INTEREST RATES OVER A PERIOD OF YEARS WITH RISING AND FALLING RATES. HOW DO YOU TRY TO MAKE THEM AS FAIR AND EQUITABLE AS POSSIBLE SO THAT YOU DON'T HAVE ONE SUBDIVISION PAYING ASSESSMENTS FOR, YOU KNOW, IT LOOKS VERY SIMILAR TO ANOTHER ONE. AND SO THE TIRZ BUYDOWN IS WHAT IT DOES IS IT TRIES TO KEEP THOSE ASSESSMENTS AS MUCH AS POSSIBLE. SO AS COSTS GO UP, IT KIND OF MAKES IT SO PRICE DOESN'T GO UP. BASICALLY WHAT YOU'RE SAYING, IT KIND OF EQUALIZE THEIR PRICES OVER THE YEARS BECAUSE. SO FOR EXAMPLE, YOU KNOW, PID BONDS THAT WERE SOLD THREE YEARS AGO, I MEAN, THOSE ASSESSMENTS ON INTEREST RATES ALONE ARE LOWER THAN WHERE THEY ARE TODAY. YEAH. AND SO YOU TRY TO IT'S NOT A PERFECT SYSTEM IS A FACTOR OF THE ECONOMY AND TIMING AND BOND MARKET RATES. BUT THAT THAT'S THE PURPOSE OF THE TIRZ PLAN, IS TO JUST TRY TO BITE ON THOSE ASSESSMENTS. SO THIS WAS ALREADY APPROVED IN 22. BASICALLY WE'RE JUST DOING THE AMENDMENTS RIGHT NOW TO REFLECT IMPROVEMENT AREA THREE. YES, SIR. OKAY. I THINK I'M GOOD. THERE'S NO OTHER QUESTIONS. I'LL ENTERTAIN A MOTION. I'LL MAKE A MOTION TO APPROVE REGULAR AGENDA ITEM D1, [00:15:03] 2025-05 12TR I SECOND. MOTION MADE AND SECOND. IF YOU WOULD CAST YOUR VOTES. MOTION PASSED FOUR TWO. IF THERE'S NOTHING ELSE ON THIS AGENDA, I'LL ENTERTAIN A MOTION TO ADJOURN. MAKE A MOTION TO ADJOURN. I'LL SECOND. ALL IN FAVOR, SAY AYE. AYE. WE ARE ADJOURNED. * This transcript was compiled from uncorrected Closed Captioning.