Title
A resolution approving an agreement with Kaufman County, Texas, to participate in Reinvestment Zone Number Thirteen, City of Mesquite, Texas (Spradley Farms) ("Agreement") and authorizing the Mayor to execute the Agreement.
Body
On July 6, 2020, the City Council adopted Ordinance No. 4790 approving an amended project plan and reinvestment zone financing plan for the Spradley Farms Tax Increment Reinvestment Zone (TIRZ), which incorporated settlement terms agreed by the City and Developer through an Amended and Restated Master Development Agreement.
The amended project and financing plan decreased the City's contribution of tax increment to the TIRZ Tax Increment Fund from 70 percent to 60 percent and extended the term of the Zone for an additional 10 years, from 35 years to 45 years. The amended financing plan also reduced the anticipated contribution of Kaufman County's tax increment from 65 percent to 55 percent for a period of 35 years, and further limited the total amount of combined City and County contributions not to exceed $159,000,000.
Under Section 311.013(f) of the Texas Tax Code, the County is not required to pay any tax increment into the TIRZ unless it enters into an agreement with the City, and Section 5(b) of the Amended and Restated Master Development Agreement states that the City shall use reasonable efforts to enter into a separate Tax Participation Agreement with the County to obligate the County to deposit its tax increment into the TIRZ Tax Increment Fund in accordance with standard administrative procedures adopted by the City.
The proposed Agreement to Participate in Tax Increment Reinvestment Zone Number Thirteen, City of Mesquite, Texas (Spradley Farms) (Agreement) would fulfill the statutory requirements for the County to participate in the TIRZ. In addition to the participation requirements described above, the Agreement clarifies that the County's tax increment shall come from its Maintenance and Operations tax rate and no...
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