North Richland Hills Tax Increment Reinvestment Zone No. 3 Board Meeting - November 11, 2024

The North Richland Hills Tax Increment Reinvestment Zone No. 3 (TIRZ No. 3) Board met on Monday, November 11, 2024, at 5:00 PM in the Council Workroom at 4301 City Point Drive. A quorum was present and the meeting was posted in accordance with the Texas Open Meetings Act. The board unanimously approved the previous meeting minutes and accepted the 2024 annual report.

Consent Calendar

• The board approved the minutes of the November 13, 2023 TIRZ No. 3 Board meeting. A motion by Ms. Compton was seconded by Mr. Mitchell, and the vote was unanimous.

Public Comments & Testimony

• No citizens signed up to speak; public comments were closed.

Discussion Items

• Jay Patel presented the required 2024 annual report, noting that TIRZ No. 3 must file an annual financial report with the board and the state. Staff recommended the board accept the report.
• Project history: The former regional mall site, about 90 acres, was demolished in 2007; City Hall relocated to the area in 2016; a master developer was sought in 2018; Centurion American signed on in 2019. In 2020, a $187 million redevelopment plan was created, including 367 single-family homes, 300 multifamily units, 60,000 square feet of commercial space, and a 110-room hotel. A board member later referred to 364 single-family homes.
• Current status: 50% of single-family homes have been developed, 100% of multifamily is complete, commercial is under construction, and the hotel is scheduled to start in 2025.
• FY24 finances: TIRZ revenue collected was $44,811.48; total contributions to date were $100,993.67; contributions remaining under the 20-year maximum were $5,779,188.33; FY24 expenditures were $19,856.
• Taxable value: The FY24 taxable value was $29,872,943, based on tax year 2023 values. The taxable value increment was stated as $23,524,647. Staff said upcoming FY25 values in City Point are just over $100 million, an increase of about $71 million over the prior fiscal year.
• Craig provided a project update. The original plan anticipated single-family homes appraising at $299,000, but current appraisals are $399,000 or above; townhomes are about $375,000 and single-family homes about $450,000. The project is now expected to total $225-$250 million instead of $187 million.
• COVID-19 delayed the schedule from about six years to about seven and a half years. The 2021 goal of 50 homes permitted and on the tax rolls was not met; the project was described as 100% behind pace in 2021 but expected to catch up by 2027. TIRZ revenue is projected to exceed original projections beginning in tax year 2025 or 2026.
• Board discussion clarified that the developer issued debt repaid over time with TIRZ and PID revenues, rather than receiving a lump sum. Debt payments are currently on time.
• If TIRZ revenues exceed the amount needed for the adopted project plan, the TIRZ board and City Council could decide later whether to amend the plan, fund other eligible infrastructure projects, or close the TIRZ early. Homeowners within the PID would vote on PID-related changes, not TIRZ plan changes.
• The TIRZ helps buy down single-family PID assessments to no more than about $125 per month; without it, costs could be about $200 per month. It does not benefit multifamily and is designed to fully buy down commercial PID assessments.
• In response to a question about stalled commercial construction, staff said funding remains in place but the lender wants letters of intent from end users; staff mentioned a recent promising prospect that was not yet ready to announce.

Key Outcomes

• Approved the November 13, 2023 TIRZ No. 3 Board minutes unanimously.
• Accepted the TIRZ No. 3 Annual Report for 2024 unanimously; the report will be filed with the state.
• The meeting adjourned at 5:23 PM.