TIF ZONE 1 BOARD MEETING PACKET September 14, 2017

TIF ZONE 1 BOARD MEETING

PACKET September 14, 2017

TABLE OF CONTENTS

TIF Zone 1 Board Meeting September 14, 2017

I. Agenda 1

II. Summary Notes of August 17, 2017 2 - 3

III. TIF Zone 1 Financial Status Report 4 - 10

IV. Magnolia Parking Lot Development 11 - 27

V. Stratton Building Restoration and Renovation 28 - 63

VI. Brazos Commons Mixed Use Development 64 - 82

VII. Brazos Promenade 83 – 84

VIII. Downtown Market Study 85 - 86

TIF ZONE 1 BOARD MEETING

AGENDA September 14, 2017

TIF BOARD AGENDA September 14, 2017, 12:00 p.m.

3rd Floor Conference Room, City Hall

The City of Waco Board of Directors for Reinvestment Zone Number One for Tax Increment Financing (TIF) will have a Board Meeting at 12:00 p.m. in the 3rd Floor Conference Room of City Hall on September 14, 2017. Upcoming TIF Board Meetings are tentatively scheduled to be held on the 2nd Thursdays of each month (October 12, November 9, December 14) at 12:00 p.m., in the 3rd Floor Conference Room of City Hall. The Board meeting will be preceded by atour of potential projects.

I. Call to Order

II. Approval of August 17, 2017, TIF Summary Notes

III. Financial Report

IV. Board Chair Report – Task Force Update

Action ItemsV. Magnolia Parking Lot Development – requesting $153,910 to assist with

public improvements associated with a 194 space parking lot at 400 S. 8th St.that Magnolia will offer free to the public.

VI. Stratton Building Restoration and Renovation – requesting $1,019,400 toassist with the exterior restoration and preservation of this historic building at800 Austin Ave

VII. Brazos Commons Mixed Use Development – requesting $7,858,124 to assistwith public improvements associated with the development of a hotel, multi-family residences, and retail space that will include some public parking onabout 6 acres of land near I-H 35, and between University Parks Dr. and theBrazos River.

VIII. Brazos Promenade –requesting to change entire project development from 3phases to 4 phases.

IX. Downtown Market Study – consider TIF Task Force recommendation toselect Economic Planning Systems, Inc. as the vendor of choice to conduct theDowntown Market Study.

X. Board Discussion Items • TIF Goals and Objectives and Guidelines – possible revisions• Timing Request for TIF Funds and Project Announcements• Interest Payment Option - providing interest for TIF awards that are paid out over time• Determining Eligible Improvements to fund & listing them• Contract Requirements• Determining Amount of Funding Through Scoring Tool, Gap Analysis or other

Method• Location Priority for TIF Funds• Other considerations (High Priority Project, Historic Restoration and Significance,

Extent of Public Improvements, Public Demand and /or Necessity, etc.)• Creation of Policy and Procedures for requesting TIF Funds

XI. Request for Future Agenda Items

XII. Adjourn

1

TIF Zone 1 Summary Notes August 17, 2017

City of Waco Reinvestment Zone Number One for Tax Increment Financing (TIF) Board Meeting

SUMMARY NOTES August 17, 2017 // 12:01 – 1:46 p.m.

City Hall, 3rd Floor Conference Room

Board members present: Will Jones, Susan Cowley, Wes Filer, Ricky Turman, J.R. Marquez

Board members absent: James Nelson, Malcolm Duncan, Jr., Marcus Nelson

City Council Liaison/s present: Mayor Kyle Deaver

City Staff present: Dale Fisseler, Deidra Emerson, Melett Harrison, Clint Peters, Rusty Hill, April Hull, Kristi DeCluitt

Guests present: Megan Henderson, J.B. Smith

I. Welcome Will Jones officially convened the meeting at 12:01 p.m. when a quorum was established.

II. Approve Summary Notes of June 8, 2017The Board approved the Summary Notes of June 8, 2017 with a correction to an error inSection VIII. which stated that Robert Sheehy, Jr. had resigned from the MCC Board ofTrustees, when in fact, he had not resigned.

Action: Wes Filer made a motion to approve the Summary Notes with the noted correction.

Second: Susan Cowley 5 ayes / 0 opposed, motion carried.

III. TIF Zone 1 Financial Status ReportThe TIF Zone 1 Financial Status Report was presented by Rusty Hill who noted that there isa total budget of $67.7 million for all current projects that have been approved by the TIFBoard and $21.7 million of that has been expended, leaving approximately $46 millionremaining to pay on approved projects.

Mr. Hill reviewed the Project Financing Summary and stated that, including expectedrevenues through the end of Fiscal Year 2017, financing is available to support all currentcommitments, and $1,891,477 will be available for future projects (before subtracting anyprojects that may be approved today). Concerning the Financing Plan projections, he statedthe captured value growth for Fiscal Year 2017-18 needed to be reduced from 20% to about14% based on information received from MCAD. This change would reduce the Zone’sestimated FY 2017-18 revenue from $12.6 million to $12.0 million.

The Board had no questions about the Financial Status Report.

2

IV. Board Chair Report

In James Nelson’s absence, Melett Harrison updated the Board about the Task Force’s progress and stated that the group would be discussing which vendor to select to perform the Downtown Market Study so that a recommendation can be made to the City Council in the near future. She also noted that the TIF application had been revised and a fillable form had been created to simplify completing the application.

V. Façade Grant Program Funding Request Megan Henderson gave a PowerPoint Presentation on the history and current status of the Façade Improvement Grant Program. She explained how City Center Waco considers the various proposed projects and sometimes offers suggestions on how a project may be improved. Waco is designated as a Main Street City, which allows City Center Waco to easily access staff at the Texas Historical Commission to research these buildings and review renovation or restoration plans to make recommendations on how to best maintain the historic character of a building. She provided some renderings the Main Street staff prepared for a downtown property whose owner had applied for a Façade Improvement Grant. City Center Waco offered a grant to the property owner contingent upon adhering to the Main Street recommendation on restoring the building façade to best maintain its historic qualities. After Megan completed the presentation on the Façade Improvement program and explained why the additional funding was needed, she stated that City Center Waco welcomes feedback from the TIF Board. She specifically requested guidance concerning whether the program may need some revisions to ensure it is sustainable and effective.

Action: Susan Cowley made a motion to recommend an additional $150,000 of TIF funds for the Façade Grant Program to assist future façade improvement projects.

Second: Will Jones 5 ayes / 0 opposed, motion carried.

VI. Requests for Future Agenda Items – Will Jones asked Megan Henderson, with City

Center Waco if she would update the Board concerning a discussion in a PID Board meeting where it was suggested that TIF funds could help maintain sidewalks downtown. There was also a request for an update on the Brazos Promenade project, and Dale Fisseler shared a few details about the current status. He stated that the project will be coming back to TIF Board for consideration of revising the development timeline to be done in four phases rather than three as originally approved by the Board and City Council. He also noted that there was another project that will is likely to be presented at the same meeting that will be adjacent to the Brazos Promenade project.

VII. Adjourn The meeting adjourned at 1:45 p.m.

Approved Date Will Jones, Acting Chair

3

TIF Zone 1 Financial Report

September 14, 2017

City of Waco, Texas

Tax Increment Financing

Reinvestment Zone Number 1

Financial Report

Prepared for TIF Meeting September 14, 2017

Description

Project List and Status Schedule

Project Financing Summary

Schedule of Revenue, Expenditures and Funds Available

Schedules of TIF-1 Operating Projections

4

City of Waco, TexasTax Increment Financing

Reinvestment Zone Number OneProject List and Status Report


TIF Council Tax Increment Funding Other FundingMunis

Project #Approval

DateOrdinanceAdopted Project Description

ProjectBudget Expended Remainin

g Estimate Expended

Remaining

EDTIF100623-14-08,10-8-14,11-4-16

Last Incr.12/6/2016 275,00

0$ 109,56

7$ 165,43

3$ -$ -$ -$

EDTIF10087 9-9-11 6-15-10Ext. 2-2-16

437,280

393,552

43,728 -

-

-EDTIF10092 7-10-12 8-7-12

35,060,340

20,030,170

15,030,170

- -

-EDTIF10104 10-8-14 12-2-14 Doris Miller Memorial - 300 MLK, Jr. Blvd.

180,132 -

180,132

- -

-

EDTIF10106 10-8-14 12-2-14Incr 5-3-16

858,376

208,376

650,000 -

-

-EDTF10107 12/12/2014

Ext 5-11-17Orig 2-3-15Ext. 6-20-17

750,000 -

750,000

- -

-EDTIF10109 3-18-16 5-3-16

570,358

380,239

190,119 -

-

-EDTIF10111 9-14-16 10-18-16 465,000

-

465,000

- -

-EDTIF10112 11-4-16 12-6-16

8,000,000

663,016

7,336,984 -

-

-EDTIF10113 11-4-16 12-6-16 8,664,000

-

8,664,000

- -

-EDTIF10114 11-4-16 12-6-16

3,580,750 -

3,580,750

- -

-EDTIF10115 1-19-17 3-7-17

761,667 -

761,667

- -

-EDTIF10116 1-19-17 3-7-17

925,690 -

925,690

- -

-EDTIF10117 2-9-17 3-7-17

60,000 -

60,000

- -

-EDTIF10118 3-6-17 4-18-17

3,520,567 -

3,520,567

- -

-EDTIF10119 3-6-17 4-18-17

301,345 -

301,345

- -

-EDTIF10120 3-6-17 4-18-17

216,863 -

216,863

- -

-EDTIF10121 4-13-17 5-23-17

477,464 -

477,464

- -

-EDTIF10123 5-11-17 6-20-17

956,200 -

956,200

TXDOT Grant applicationEDTIF10125 6-8-17 8-1-17

450,000 -

450,000

- -

-EDTIF10126 6-8-17 8-1-17

670,322 -

670,322

- -

-

$ 67,181,354 $ 21,784,920 $ 45,396,434 -$ -$ -$ Projects Pending City Council Approval:

EDTIF10122 4-13-17 488,078

-

488,078

- -

-EDTIF10062 8-17-17

150,000 -

150,000

- -

-

-

$ 638,078 $ $ 638,078 -$ -$ -$

-$ 67,819,432 $ 21,784,920 $ 46,034,512 $ -$ -$

Riverfront Development Site Remediation - City

Financing Plan if Proposed Projects Approved

Subtotal - Projects Pending City Council

The Containery, - 319 S 4th St.

West Village Multi-use Development - 9th-11th, Cleveland-IH35TFNB - Your Bank for Life Project - 810 ClevelandBrotherwell Brewing Renovation Project - 400 Bridge StreetBig Green Garage - 11th & Franklin

Downtown Quiet Zone StudyColumbus Executive Center, 6th & Columbus

Façade Impr. Matching Grant Program (Funding Phase 4)

Façade Improvement Matching Grant Program ($75K+$100k+100K)

Cottages at Cameron Heights - Housing Dev. (revised payment timing)

Revised Current Project and Financing Plan Totals

Baylor University - Community Events Center ($8,006,034 FY2013 + $3,006,034 FY14-FY22)

Magnolia Market Building Renovation - 601 Webster Ave @ the Silos (Original $208,376 + Amendment 5-3-16 $650,000)Franklin Place Residential Development, Ph2 (on Mary between 6th&7th)(Extension of completion and funding to FY 2019)Altura Lofts - Gradel Building - 216 S 6th St.

Brazos Promenade Riverfront Development - Catalyst Contract #1:Brazos Promenade Riverfront Development - Catalyst Contract #2:

Downtown Market Study

Elm Ave. Sidewalk, Streetscape & Safety Project - MLK to Garrison

Franklin Square Redevelopment (south side 7th & 8th)Mary Ave. & University Parks Redevelopment

West Campus Lofts, Phase II

5

City of Waco, TexasTax Increment Financing

Reinvestment Zone Number OneProject Financing Summary


TIF #1Operating Other

TotalTIF+Other

Funding Funding Funding

TIF 1 Operating Funds on hand $ 20,577,167 $ - $ 20,577,167 - - -

Estimated additional investment income 9,124 - 9,124 Estimated additional debt service - - - Contingent Hilton tax incentive (70,579) - (70,579)

Total Funds Available through End of Current Fiscal Year Note 1 $ 20,515,712 $ - $ 20,515,712 XOperating Funds Committed:

Total Funds Committed Note 2 $ 46,034,512 $ - $ 46,034,512

Baylor University - Community Events Center (15,030,170) - (15,030,170)Franklin Place Residential Development, Ph2 (750,000) - (750,000)

(190,119) - (190,119)West Campus Lofts (310,000) - (310,000)Brazos Promenade Riverfront Development - Catalyst Contract #2: (3,580,750) - (3,580,750)Franklin Square Redevelopment (south side 7th & 8th) (761,667) - (761,667)Mary Ave. & University Parks Redevelopment (925,690) - (925,690)West Village Multi-use Development - 9th-11th, Cleveland-IH35 (3,520,567) - (3,520,567)

(301,345) - (301,345)Big Green Garage - 11th & Franklin (318,309) - (318,309)The Containery, - 319 S 4th St. (325,385) - (325,385)Elm Ave. Sidewalk, Streetscape & Safety Project (956,200) - (956,200)Columbus Executive Center, 6th & Columbus (297,828) - (297,828)

Subtotal of Project Commitments from Revenues After Current Fiscal Year $ (27,268,030) $ - $ (27,268,030)

Total Current Funds Committed $ 18,766,482 $ - $ 18,766,482 YTotal Uncommitted TIF 1 Operating Funds As of September 30 (Note 4)

$ 1,749,230 $ - $ 1,749,230 X-Y

CONTINGENT CONTRACT COMMITMENT: During 1985, a development agreement was entered into which provided that TIF#1 would repay $830,000 for public improvements made in Reinvestment Zone # One. Repayment of principal and accrual of interest will not begin until revenue is received from the area designated in the development agreement.

Operating Funds Available:

Note 4: This line represents the amount of operating funds expected to be available through the end of the current fiscal year to commit to new projects.

Less Project Commitments from Revenues After Current Fiscal Year:Note3

Estimated additional tax increment

Note 1: This line represents the total of all funding sources secured through the end of the current fiscal year available to meeting existing and future commitments.Note 2: This line represents total budgets for existing projects less amounts expended. Includes proposed project(s) under consideration.Note 3: These lines represent project payments to be made from future years' tax increment because of priority of payment.

Altura Lofts - Gradel Building - 216 S 6th St.

TFNB - Your Bank for Life Project - 810 Cleveland

6

Base Year: 1982 Base Value: $81,043,045

2016 Tax Year Captured Value: $356,183,443

Description 2017 2016

Fiscal Year Operations-to-date

Funds Available October 1 14,824,117$ 11,709,947$

Revenue: Total property tax collections 10,147,033$ 8,078,680$ WISD HB1 contributions (billed) 558,461 -

Investment earnings 105,876 40,405 Total Revenue 10,811,370$ 8,119,085$

Expenditures:TIF Administration Fee 500,000$ 500,000$ Debt Service Paid 74,170 40,613

Completed Projects:Dr Pepper Museum Courtyard Improvements - 38,049 Rapoport - Gomez Building - 450,000 Tinsley Place - Phase 3 - 703,968 222 Clay Avenue - 53,955

Ongoing Projects:Façade Improvement Matching Grant Program 40,038 3,920 The Heights at Cameron Park 65,475 - Cottages @ Cameron Heights - SGH Real Estate - - The Praetorian Restoration/Renovation (Ellis Isle Equities) 34,968 - Baylor University - Community Events Center 3,006,034 3,006,034 Doris Miller Memorial - - Magnolia Market Building Renovation - 208,376 Franklin Place Residential Development - - Altura Lofts - Gradel Building - 216 S 6th St. 380,239 - Mary Avenue Market - 6th & Mary 294,380 - West Campus Lofts, Phase II - - Riverfront Development Site Remediation - City (includes POs) 663,016 - Brazos Promenade Riverfront Development - Catalyst Contract #1: - - Brazos Promenade Riverfront Development - Catalyst Contract #2: - - Franklin Square Project - - Mary Ave. & University Parks Redevelopment - - Downtown Market Study - - West Village Multi-use Develop. - 9th-11th, Cleveland-IH35 - - TFNB - Your Bank for Life Project - 810 Cleveland - - Brotherwell Brewing Renovation Project - 400 Bridge St. - - Big Green Garage - 11th & Franklin - - The Containery, - 319 S 4th St. - - Elm Ave. Sidewalk, Streetscape & Safety Project - MLK to Garrison - - Downtown Quiet Zone Study - - Columbus Executive Center, 6th & Columbus - -

Total Expenditures 5,058,320$ 5,004,915$

Total Funds Available (see Note) 20,577,167$ 14,824,117$

Note: Total Funds Available represents existing funds available to meet existing and future project commitments. See Project List and Status Report for estimated uncommitted reserve funds.


City of Waco, Texas Tax Increment Financing

Reinvestment Zone Number OneSchedule of Revenue, Expenditures and Funds Available

7

CITY OF WACO TIF ZONE #1 FINANCING PLAN PROJECTIONS

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21TIF 1 Captured value 262,843,551$ 356,183,443$ 405,686,000$ 417,856,580$ 430,392,277$ 443,304,045$ Percentage Growth from Prior Year 20.81% 35.51% 13.90% 3.00% 3.00% 3.00%RevenuesTax increment revenue:

City of Waco 2,093,237$ 2,775,032$ 3,086,083$ 3,178,666$ 3,274,026$ 3,372,246$ Waco ISD - ad valorem tax 3,700,604 4,965,362 5,566,012 5,732,992 5,904,982 6,082,131 Waco ISD - HB1 supplement 429,745 558,461 652,376 671,948 692,106 712,869 McLennan County 1,432,057 1,874,679 2,008,905 2,069,172 2,131,247 2,195,185 McLennan Community College 423,037 531,960 610,114 628,418 647,270 666,688

Total ad valorem tax revenue 8,078,680$ 10,705,494$ 11,923,490$ 12,281,196$ 12,649,631$ 13,029,119$ Investment revenue 40,405 115,000 80,000 20,000 20,000 20,000

Total revenue 8,119,085$ 10,820,494$ 12,003,490$ 12,301,196$ 12,669,631$ 13,049,119$ Expenditures

Administration costs 500,000 500,000 500,000 500,000 500,000 500,000 Debt service 40,613 74,170 76,650 74,050 80,875 82,000 Convention Facility Tax Incentive - 70,579 58,743 66,468 - - Completed Projects:

Dr Pepper Museum Courtyard Improvements 38,049 - - - - - Rapoport - Gomez Building 450,000 - - - - - Tinsley Place - Phase 3 703,968 - - - - - 222 Clay Avenue 53,955 - - - - - The Heights at Cameron Park - 65,475 - - - - The Praetorian Restoration/Renovation - 34,968 - - - - Mary Avenue Market - 6th & Mary - 294,380 - - - -

Ongoing Projects:Façade Improvement Matching Grant Program 3,920 355,471 - - - - Cottages @ Cameron Heights - SGH Real Estate - 43,728 - - - - Baylor Stadium/Events Center 3,006,034 3,006,034 3,006,034 3,006,034 3,006,034 3,006,034 Doris Miller Memorial - 180,132 - - - - Magnolia Market Building Renovation 208,376 650,000 - - - - Franklin Place Residential Development - - - 750,000 - - Altura Lofts - Gradel Building - 216 S 6th St. - 380,239 190,119 - - - West Campus Lofts, Phase II - 155,000 155,000 155,000 - - Riverfront Development Site Remediation - City - 8,000,000 - - - - Brazos Promenade Riverfront - Catalyst Contract #1: - 8,664,000 - - - - Brazos Promenade Riverfront - Catalyst Contract #2: - - 3,580,750 - - - Franklin Square Redevelopment - - 253,889 253,889 253,889 - Mary Avenue & University Parks Redevelopment - - 308,563 308,563 308,564 - Downtown Market Study - 60,000 - - - - West Village Multi-use Develop. - 9th-11th, Cleveland-I35 - - - - 400,000 870,000 TFNB - Your Bank for Life Project - 810 Cleveland - - 150,673 150,672 - - Brotherwell Brewing Renovation Project - 400 Bridge St. - 216,863 - - - - Big Green Garage - 11th & Franklin - 159,155 159,155 159,154 - - The Containery, - 319 S 4th St. - 162,693 162,693 162,692 - - Elm Ave. Sidewalk, Streetscape & Safety Project - - 520,000 436,200 - - Downtown Quiet Zone Study - 450,000 - - - - Columbus Executive Center, 6th & Columbus - 372,494 148,914 148,914 - -

Total expenditures 5,004,915$ 23,895,381$ 9,271,183$ 6,171,636$ 4,549,362$ 4,458,034$ Revenue minus Expenditures 3,114,170 (13,074,887) 2,732,307 6,129,560 8,120,269 8,591,085 Funds available - beginning of year 11,709,947 14,824,117 1,749,230 4,481,537 10,611,097 18,731,366 Projected Funds available - EOY 14,824,117$ 1,749,230$ 4,481,537$ 10,611,097$ 18,731,366$ 27,322,451$

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

8


TIF 1 Captured valuePercentage Growth from Prior YearRevenuesTax increment revenue:

City of WacoWaco ISD - ad valorem taxWaco ISD - HB1 supplementMcLennan CountyMcLennan Community College

Total ad valorem tax revenueInvestment revenue

Total revenueExpenditures

Administration costsDebt serviceConvention Facility Tax IncentiveCompleted Projects:

Dr Pepper Museum Courtyard ImprovementsRapoport - Gomez BuildingTinsley Place - Phase 3222 Clay AvenueThe Heights at Cameron ParkThe Praetorian Restoration/RenovationMary Avenue Market - 6th & Mary

Ongoing Projects:Façade Improvement Matching Grant ProgramCottages @ Cameron Heights - SGH Real EstateBaylor Stadium/Events CenterDoris Miller MemorialMagnolia Market Building RenovationFranklin Place Residential DevelopmentAltura Lofts - Gradel Building - 216 S 6th St.West Campus Lofts, Phase IIRiverfront Development Site Remediation - City Brazos Promenade Riverfront - Catalyst Contract #1:Brazos Promenade Riverfront - Catalyst Contract #2:Franklin Square RedevelopmentMary Avenue & University Parks RedevelopmentDowntown Market StudyWest Village Multi-use Develop. - 9th-11th, Cleveland-I35TFNB - Your Bank for Life Project - 810 ClevelandBrotherwell Brewing Renovation Project - 400 Bridge St.Big Green Garage - 11th & FranklinThe Containery, - 319 S 4th St.Elm Ave. Sidewalk, Streetscape & Safety ProjectDowntown Quiet Zone StudyColumbus Executive Center, 6th & Columbus

Total expendituresRevenue minus ExpendituresFunds available - beginning of yearProjected Funds available - EOY

2021-22 2022-23 2023-24 2024-25 2025-26 2026-27456,603,166$ 470,301,261$ 484,410,299$ 498,942,608$ 513,910,886$ 529,328,213$

3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

3,473,414$ 3,577,616$ 3,684,945$ 3,795,493$ 3,909,358$ 4,026,639$ 6,264,595 1,750,000

734,255 200,000 2,261,040 2,328,871 2,398,738 2,470,700 2,544,821 2,621,165

686,689 707,290 728,509 750,364 772,875 796,061 13,419,993$ 8,563,777$ 6,812,192$ 7,016,557$ 7,227,054$ 7,443,865$

20,000 20,000 20,000 20,000 20,000 20,000 13,439,993$ 8,583,777$ 6,832,192$ 7,036,557$ 7,247,054$ 7,463,865$

500,000 500,000 500,000 500,000 500,000 500,000 - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - -

3,006,034 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

890,000 550,000 450,000 360,567 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

4,396,034$ 1,050,000$ 950,000$ 860,567$ 500,000$ 500,000$ 9,043,959 7,533,777 5,882,192 6,175,990 6,747,054 6,963,865

27,322,451 36,366,410 43,900,187 49,782,379 55,958,369 62,705,423 36,366,410$ 43,900,187$ 49,782,379$ 55,958,369$ 62,705,423$ 69,669,288$ 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27

9


TIF 1 Captured valuePercentage Growth from Prior YearRevenuesTax increment revenue:

City of WacoWaco ISD - ad valorem taxWaco ISD - HB1 supplementMcLennan CountyMcLennan Community College

Total ad valorem tax revenueInvestment revenue

Total revenueExpenditures

Administration costsDebt serviceConvention Facility Tax IncentiveCompleted Projects:

Dr Pepper Museum Courtyard ImprovementsRapoport - Gomez BuildingTinsley Place - Phase 3222 Clay AvenueThe Heights at Cameron ParkThe Praetorian Restoration/RenovationMary Avenue Market - 6th & Mary

Ongoing Projects:Façade Improvement Matching Grant ProgramCottages @ Cameron Heights - SGH Real EstateBaylor Stadium/Events CenterDoris Miller MemorialMagnolia Market Building RenovationFranklin Place Residential DevelopmentAltura Lofts - Gradel Building - 216 S 6th St.West Campus Lofts, Phase IIRiverfront Development Site Remediation - City Brazos Promenade Riverfront - Catalyst Contract #1:Brazos Promenade Riverfront - Catalyst Contract #2:Franklin Square RedevelopmentMary Avenue & University Parks RedevelopmentDowntown Market StudyWest Village Multi-use Develop. - 9th-11th, Cleveland-I35TFNB - Your Bank for Life Project - 810 ClevelandBrotherwell Brewing Renovation Project - 400 Bridge St.Big Green Garage - 11th & FranklinThe Containery, - 319 S 4th St.Elm Ave. Sidewalk, Streetscape & Safety ProjectDowntown Quiet Zone StudyColumbus Executive Center, 6th & Columbus

Total expendituresRevenue minus ExpendituresFunds available - beginning of yearProjected Funds available - EOY

2027-28 2028-29 2029-30 2030-31 2031-32 2032-33545,208,059$ 561,564,301$ 578,411,230$ 595,763,567$ 613,636,474$ 632,045,568$

3.00% 3.00% 3.00% 3.00% 3.00% 3.00%

4,147,438$ 4,271,861$ 4,400,017$ 4,532,017$ 4,667,978$ 4,808,017$

2,699,800 2,780,794 2,864,218 2,950,145 3,038,649 3,129,808 819,943 844,541 869,877 895,974 922,853 950,538

7,667,181$ 7,897,196$ 8,134,112$ 8,378,136$ 8,629,480$ 8,888,363$ 20,000 20,000 20,000 20,000 20,000 20,000

7,687,181$ 7,917,196$ 8,154,112$ 8,398,136$ 8,649,480$ 8,908,363$

500,000 500,000 500,000 500,000 500,000 500,000 - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

500,000$ 500,000$ 500,000$ 500,000$ 500,000$ 500,000$ 7,187,181 7,417,196 7,654,112 7,898,136 8,149,480 8,408,363

69,669,288 76,856,469 84,273,665 91,927,777 99,825,913 107,975,393 76,856,469$ 84,273,665$ 91,927,777$ 99,825,913$ 107,975,393$ 116,383,756$ 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33

10

Magnolia Parking Lot

September 8, 2017

IMAGINE WACO POINTS RECOMMENDATION

Magnolia Market has requested TIF funds for public improvements associated with a project planned between Jackson and Webster, and between 8th Street and their Market property. The project would pave and open to the public a large surface parking lot currently used by Magnolia.

The proposed project would create a sizeable shared parking facility in one of the two most parking-stressed areas of downtown. It would offer parking relief for several area businesses, as Magnolia’s hours are more limited than those of some of its neighbors; and its proximity to the shuttle route makes it a possible parking spot for folks visiting other areas of downtown as well.

The Board noted the minimal amount budgeted by the project for landscaping, but expressed confidence that the project will meet the high design standards Magnolia is known for. (Substantial additions to the landscaping detail have been added since the Board vote.)

City Center Waco recommends approval of the project. The terms of the project have changed somewhat since the approval and point values assigned, but City Center Waco is unreservedly supportive of the investments in public infrastructure and connectivity.

Submitted, Megan Henderson, Executive Director

12

DESCRIPTIONPUBLIC

IMPROVEMENT COST

PRIVATE IMPROVEMENT

COSTTOTAL COST

PUBLIC SITE IMPROVEMENTS.MISC DEMOLITION (Demo of existing chain link fences, existing curb and

gutter, sidewalk and apron on 8th Street) 25,000.00$ 25,000.00$ ROUGH & FINE GRADING 110,460.00$ 110,460.00$ LIMESTONE SUB-BASE 126,240.00$ 126,240.00$

CONCRETE PAVING REINFORCED 5" (Materials & labor; 975 cy concrete) 225,000.00$ 225,000.00$

CONCRETE CURBING 1,875.00$ 17,295.00$ 19,170.00$ SAW-CUT & SEALANT JOINTS 3,000.00$ 3,000.00$

CONCRETE APPROACH APRONS 20,000.00$ 20,000.00$ CONCRETE SIDEWALK 8TH STREET (6 ft wide x 125 ft long) 7,500.00$ 7,500.00$

ORNAMENTAL FENCE 6,250.00$ 44,800.00$ 51,050.00$ ORNAMENTAL GATE (6) 12' Gates 4,000.00$ 2,000.00$ 6,000.00$

Dumpster Enclosure 5,000.00$ 5,000.00$ RELOCATE EXISTING ORNAMENTAL FENCE 6,720.00$ 6,720.00$

LANDSCAPING -$ -$ 3" LIVE OAK TREES 1,500.00$ 1,500.00$

3" MAGNOLIA TREES 7,150.00$ 7,150.00$ 5 GALLON KNOCK-OUT ROSES 2,160.00$ 2,160.00$

IRRIGATION 375.00$ 3,375.00$ 3,750.00$

STORMWATER MANAGEMENT 8TH STREET 63,120.00$ 63,120.00$ PARKING LOT LIGHTING -$

LIGHTS ALONG 8TH STREET 6,400.00$ 6,400.00$ PARKING LOT LIGHTS 6,900.00$ 6,900.00$

208V SERVICE, WIRE & CONDUIT 4,320.00$ 6,480.00$ 10,800.00$ LIGHT FOUNDATIONS 4,000.00$ 6,000.00$ 10,000.00$

PAINT, STRIPING, & SIGNAGE 5,000.00$ 5,000.00$ MOBILIZATION & LAYOUT 6,906.15$ 62,155.35$ 69,061.50$

PROFESSIONAL FEES FOR PUBLIC IMPROVEMENTSSURVEY & PLATTING OF PROPERTY 349.00$ 3,136.65$ 3,485.65$

ENGINEERING SERVICES FOR PARKING LOT 1,675.00$ 15,075.00$ 16,750.00$ GEOTECHNICAL ENGINEER 640.00$ 5,760.00$ 6,400.00$

-$ BUILDING & SITE IMPROVEMENTS 110,550.00$ 110,555.00$

NEW RESTROOM BUILDING 149,000.00$ 149,000.00$

Total TIF Request 153,910.15$ 153,910.15$ Total Private Improvement Cost 923,257.00$ 923,257.00$ TOTAL PROJECT BUDGET 1,077,167.15$

MAGNOLIA PARKING LOT BUDGET

19

Crossfit

Location Map

20

Current Photo

21

Current Photo

22

Current Photo

23

Concept Plan

24

Concept Plan

25

OVERALL SITE LAYOUT – CURRENT & PROPOSED

26

Parking Lot Site Layout Proposed

27

Stratton Building Restoration and

Renovation

September 7, 2017


Peter Ellis is seeking TIF funds for public improvements as part of his proposed development of the historic Stratton Building located at 800 Austin Avenue.

The proposed project would stabilize, preserve and protect the structure to the Secretary of the Interior’s Standards of Historic Preservation; create new commercial space at three street-visible levels and new residential space on an additional three storeys; and add a rooftop deck.

Key considerations in the Board’s recommendation were

• Historic preservation• Active, open first- and mezzanine space• Conversion of basement space to active, street-visible restaurant space• Addition of rooftop common area for residents• Location impact and variety of uses

Following a recommendation by the Real Estate Development and Urban Design Committee and a Board vote on July 27, City Center Waco recommends approval of the project and 14/15 Imagine Waco points.


29

City of Waco – TIF Project Application 5

TIF APPLICATION

Section 1: General Project Information Project Name:

Stratton Square, LLC Application Date:

6/28/17

General location of project: 8th and Austin Ave TIF Number:

Street address of project: 800 Austin Ave City: Waco State: TX ZIP: 76701

Section 2: General Ownership Information

Name of applicant: (as registered on legal documents)

Stratton Square, LLC

Name of parent company/affiliates:(if applicable)

Website:

Preparer: (Person who can answer questions about this document)

Peter Ellis E-mail:

[email protected]

Phone: 512-963-2128

Street, City, State, ZIP 601 Franklin Ave 4C, Waco, TX, 76701 Fax: N/A

Section 3: Project Summary Type of project: Mixed use, retail, hotel, residential, office, etc

Mixed-Use/Residential

Property acquisition: (estimated or actual date)

July 2015 Projected Start:(Building permit issued)

Winter 2017 Projected Finish: (Final CO issued)

Summer 2018

Number of phases: 1 Total current MCAD value: $169,660 Project site acreage: 0.189 acres Total acquisition cost: $250,000 Number of parcels: 1 Total private improvement cost: $4,000,000 Number of proposed buildings: 1 Total public improvement cost: $1,000,000 Total building square footage: 40,610 Estimated market value at completion: $2,500,000

Total TIF Assistance Requested: $1,000,000

Section 4: Planned Demolition Will any buildings on the property be demolished? (If yes, fill out chart below. Add rows and/or additional pages as necessary.) Yes X No

Address Type of Use Square Footage Year Built

Number of Employees

Number of Residents

Section 5: Planned Building Area by Use (Fill out for each building or phase; add additional sheets as necessary)

Sq Feet * Units Parking (list only new spaces, not existing) # of spaces Hotel rooms Structured: For sale residential On site surface: For rent residential 24,750 27 On street: Retail 7,610 2 Other Office Total: Live/work Building Heights Showroom 8,250 1 Number of stories (above ground): 5 Warehouse Number of basement/sub surface levels: 1 Common area Building height (feet) for tallest building: 60 ft Other:

Total space 40,610

31

City of Waco – TIF Project Application 6

Attach the following project-related documents: P1. Project summary sheet:

This is a one- or two-page description of your project. Include type of project, number of units, square footage, private investment, public investment, requested TIF funding, images, elevations, other relevant descriptive information and a brief narrative of why your project should be approved. This summary will be used as a hand out to briefly describe your project to relevant staff members, TIF Board members and/or City Council.

P2. Site plan. Show location of both public and private improvements. Preliminary or conceptual site plan is acceptable.

P3. Elevations for all street frontages. Should show your project in some detail.

P4. Landscaping plan Show location and types of plantings, trees, walkways, street furniture, etc. Can be submitted as part of Site Plan.

P5. Building materials Show images of the types of materials used in both public and private improvements, such as façade materials, roofing materials, types of bricks (if used), etc.

P6. Residential projects only: Unit mix Show number, size, type, and price of each unit type.

P7. Location map The map should general indicate the subject property boundaries and include readily recognized reference points. Can be submitted as part of Site Plan (inset)

Section 6: Planned Total Costs and Values (Fill out for each phase. Attach additional sheets as necessary.)

Year 1 Year 2 (if applicable)

Year 3 (if applicable)


Total

Current MCAD value of site $169,660

Acquisition cost $250,000 $250,000

Construction costs that may be eligible for TIF funding assistance (i.e. public improvement/infrastructure items)

$1,000,000 $1,000,000

Total construction cost $5,000,000 $5,000,000

Estimated total market value after completion

$2,500,000 $2,500,000

Total amount of TIF funding requested: $1,000,000

Attach the following project-related documents: P8. Total Project Budget showing private and public investment expense schedule

(This schedule should show all planned private and public investment expenses.) Itemized TOTAL project budget with cost estimates -- clearly identify components for which TIF funding is being requested. Budget must be based on an engineer estimate, architect estimate, &/or contractor’s written quotes. NOTE: If the applicant is the contractor, or in partnership with the contractor, two additional contractor quotes will be required.

P9a. Three to Five year pro forma showing funding gap without TIF funding P9b. Three to Five year pro forma showing viability with TIF funding

P9c. Letter from Lending Institution(s) regarding project funding committed

32

DESCRIPTIONPUBLIC

IMPROVEMENT COST

PRIVATE IMPROVEMENT

COSTTOTAL COST

PUBLIC SITE IMPROVEMENTS

Added Public Entrance w/ Façade 40,000$ 40,000$ 80,000$ Added Rooftop Terrace & Observatory 100,000$ 150,000$ 250,000$ Asbestos and Lead Paint Remediation 150,000$ 150,000$

Engineering & Potential Plumbing within City easement 30,000$ 30,000$ Sidewalk Improvements 19,400$ 19,400$

FAÇADE IMPROVEMENTS

Store Front WINDOWS 10,000$ 10,000$

ALL Exterior WINDOW GLAZING 25,000$ 25,000$

EXTERIOR BUILDING LIGHTS 7,000$ 7,000$

CLEANING, REPOINTING BRICK & MORTAR, STONEWORK REPAIR 233,000$ 233,000$

RESTORE FIRE ESCAPE 135,000$ 135,000$

ENTRY DOOR REPAIR & SURROUND UPDATES 15,000$ 15,000$ MURALS REPAINTED 50,000$ 50,000$

BUILDING & SITE IMPROVEMENTS 3,100,000$ 3,100,000$

-$

GENERAL COSTS: -$

CONTRACTOR FEES 250,000$ 250,000$

CITY PERMITS & FEES 10,000$ 10,000$

Contingency Allowance / Job Difficulty 200,000$ 200,000$

TAXES,INSURANCE, CONSTRUCTION FEES 250,000$ 250,000$

DESIGN PROFESSIONAL COSTS 205,000$ 205,000$

TOTAL TIF REQUEST 1,019,400$

Total Private Improvement Cost 4,000,000$

TOTAL PROJECT BUDGET 5,019,400$

STRATTON SQUARE TOTAL BUDGET

38

Location Map

Franklin Square

39

Location Map

Franklin Square

Stratton

Stratton Parking Lot

40

Building Description

Stratton Furniture Building, Built in 1923 Historically Contributing Structure Neoclassical Revival Style Architecture 5 Stories, 60 Ft. Tall (plus basement) 40,610 Sq. Ft. Vacant for at least 35 years Extensive Interior Damage Exterior needs Restoration

41

Historic Stratton Building Photo

42

Recent Photo

North Façade Austin Ave. & East Façade 8th St.

43

Recent Photo

South Façade Facing Franklin Ave.

44

Recent Photo

West Façade Facing 9th St. & Franklin Ave.

45

Current Condition

46

Current Condition

47

Rooftop View looking North

48

Front Entrances – Austin Ave. & 8th St.

49

First Floor

50

4th Floor, Original Wood Floors & Ceiling Tiles

3rd Floor, Original Wood Floors & Ceiling Tiles

51

Peeling Plaster

52

Damaged Walls

53

Damaged Ceiling Tiles

54

Exposed Electrical & Ceiling

55

Project Details

Stratton Square, LLC – Owner Exterior Restoration Extensive Interior Restoration & Renovation Adaptive Re-use, Mixed Use Development 15,355 Sq. Ft. of Commercial Space 1st floor, mezzanine & basement levels

24,750 Sq. Ft. of Residential Space 27 Units on three upper floors

Rooftop Observation Deck56

S t r a t t o n S q u a r e D e v e l o p m e n tr e s t o r a t i o n & r e n o v a t i o n

E L L I S I S L E E Q U I T I E S , L L C6 0 1 F r a n k l i n A v e , W a c o , T X 7 6 7 0 1

r e a c h a r c h i t e c t s1 1 0 7 s . 8 t h a t x , 7 8 7 0 4

residential loft units maintain character of ceilings

sidewalk dining basement restaurant The Art Center exibition hall

tenant storage

mezzanine level café restored exibition hall stair

restored façade

57

S t r a t t o n S q u a r e D e v e l o p m e n tr e s t o r a t i o n & r e n o v a t i o n

E L L I S I S L E E Q U I T I E S , L L C6 0 1 F r a n k l i n A v e , W a c o , T X 7 6 7 0 1

r e a c h a r c h i t e c t s1 1 0 7 s . 8 t h a t x , 7 8 7 0 4

sidewalk diningAs a public anchor for Austin Avenue, The Art Center inhabits the main hall of The Stratton. An opening to the basement creates a visual dialogue with the main floors and the street, expanding the range of public programs and access into the evening.

opening in floor creates connection to street basement restaurant or pub

mezzanine café

The Art Center exibition hall

residential lofts

58

Stratton Basement Layout

59

UP

DN

DN

UP

UP

DN

ELEV

LOBBY

THE ART CENTER

WC

WC

3' - 0"

historic passenger elevator to remain

a r c h i t e c t sr e a c h 3/32" = 1'-0"

ground floor planThe Stratton

north

Stratton Ground Floor Layout

60

Stratton Second Floor Layout

61

Stratton 3rd, 4th, 5th Floors Layout

62

ELEV

PUBLICOBSERVATORY

PRIVATERESIDENTS ROOF

DECK

a r c h i t e c t sr e a c h 3/32" = 1'-0"

roof top deck planThe Stratton

north

Stratton Rooftop Deck Layout

63

Brazos Commons Mixed Use

Development

downtown. It will also provide additional conference space that is needed to accommodate smaller events when the Convention Center is fully booked. If the recommended funding of $7,858,124 is awarded, it is anticipated that $2,000,000 of that amount will be set aside for the City of Waco to enter into a contract for the relocation of the large Oncor electrical transmission lines. The developer will be reimbursed up to $5,858,124 for the remaining public improvements after project completion. Brazos Condos 1, LP, has requested a long-term payment of the grant over eight years with interest. The inclusion of interest is not recommended by staff. Previously, the TIF Board has discussed an interest payment structure for projects that are paid out over several years. However, this structure is not defined.

65

September 7, 2017


Rick Sheldon and Joe Board are seeking TIF funds for public improvements as part of their proposed development of land located between the Brazos Commons (riverfront) and University Parks Drive.

The proposed project would include 400 apartment units, 30,000 square feet of restaurant/retail, 120 extra public parking spaces (surface and garage,) and an 11-storey, 160-room hotel with sizeable conference center and a rooftop reception area.

Key considerations in the Board’s recommendation were

• Location impact and variety of uses• Density• Quality of design and construction• Placemaking• Relative modesty of ask

Following a recommendation by the Real Estate Development and Urban Design Committee and a Board vote on July 27, City Center Waco recommends approval of the project and 15/15 Imagine Waco points.


66

City of Waco

Tax Increment Financing Assistance Application

Waco Riverfront

City of Waco City Manager's Office Economic Development 300 Austin Avenue Waco, Texas 76701 (254) 750 - 5640 www.wac o - texas.co m

For Office Use Only

TI F Zone Projec t Number : Projec t Name : Applicant: Submitta l Date :

TI F 1 Board Actio n Date

Cit y Counci l Publi c Hearin g Cit y Council Develope r Agreement

67

http://www.waco-texas.com/





TIF APPLICATIONSection 1: General Project Information

Project Name:

Brazod Riverfront Application Date:

August 23,2017

General location of project: University Parks Drive & Clay Street TIF Number: Street address of project: 522 South University Parks Drive City: Waco State: TX ZIP: 76701

Section 2: General Ownership Information

Name of applicant: (as registered on legal documents)

Brazos Condos I LP

Name of parent company/affiliates:(if applicable) Website: Preparer: (Person who can answer questions about this document)

Mike Anderson E-mail:

[email protected] et

Phone: 972.977.3500

Street, City, State, ZIP 3819 Towne Crossings, Mesquite, Texas 75149 Fax:

Section 3: Project Summary

Type of project: Mixed use, retail, hotel, residential, office, etc

Mixed Use

Property acquisition: (estimated or actual date)

complete Projected Start: (Building permit issued)

4th Qtr 2018 Projected Finish: (Final CO issued)

1st Qtr 2019

Number of phases: 3 Total current MCAD value: $6,395,729 Project site acreage: 6.5540 acres Total acquisition cost: N/A Number of parcels: 1 Total private improvement cost: $117,037,263 Number of proposed buildings: 3 Total public improvement cost: $7,895,457 Total building square footage: 630,000 Estimated market value at completion: $129,328,449

Total TIF Assistance Requested: $7,895,457

Section 4: Planned Demolition

Will any buildings on the property be demolished? (If yes, fill out chart below. Add rows and/or additional pages as

necessary.) yes Yes No

Address Type of Use Square Footage Year Built

Number of Employees

Number of Residents

522 University Parks Drive, Waco, Texas

Condos

COMPLETED

68

Section 5: Planned Building Area by Use (Fill out for each building or phase; add additional sheets as necessary)

Sq Feet * Units Parking (list only new spaces, not existing) # of spaces Hotel rooms 150,000 160 Structured: 807 For sale residential On site surface: 50 For rent residential 450,000 400 On street: 30 Retail 30,000 Other Office Total : 887 Live/work Building Heights Showroom Number of stories (above ground): 11 Warehouse Number of basement/sub surface

levels: Common area Building height (feet) for tallest building: 115 Other:

Total space 630,000

Attach the following project-related documents:

P1. Project summary sheet: This is a one- or two-page description of your project. Include type of project, number of units, square footage, private investment, public investment, requested TIF funding, images, elevations, other relevant descriptive information and a brief narrative of why your project should be approved. This summary will be used as a hand out to briefly describe your project to relevant staff members, TIF Board members and/or City Council.

P2. Site plan. Show location of both public and private improvements. Preliminary or conceptual site plan is acceptable.

P3. Elevations for all street frontages. Should show your project in some detail.

P4. Landscaping plan Show location and types of plantings, trees, walkways, street furniture, etc. Can be submitted as part of Site Plan.

P5. Building materials Show images of the types of materials used in both public and private improvements, such as façade materials, roofing materials, types of bricks (if used), etc.

P6. Residential projects only: Unit mix Show number, size, type, and price of each unit type.

P7. Location map The map should general indicate the subject property boundaries and include readily recognized reference points. Can be submitted as part of Site Plan (inset)

69

Section 6: Planned Total Costs and Values (Fill out for each phase. Attach additional sheets as necessary.)

Year 1 Year 2 (if applicable)



Total

Current MCAD value of site $6,395,729

Acquisition cost N/A

Construction costs that may be eligible for TIF funding assistance (i.e. public improvement/infrastructure items)

$5,780,078 – MF & Retail $2,115,379 – Hotel

Total construction cost $82,841,645 – MF & Retail $40,091,075 – Hotel

$122,932,720

Estimated total market value after completion

$129,328,449

Total amount of TIF funding requested: $7,895,457

Attach the following project-related documents: P8. Total Project Budget showing private and public investment expense schedule

(This schedule should show all planned private and public investment expenses.) Itemized TOTAL project budget with cost estimates -- clearly identify components for which TIF funding is being requested. Budget must be based on an engineer estimate, architect estimate, &/or contractor’s written quotes. NOTE: If the applicant is the contractor, or in partnership with the contractor, two additional contractor quotes will be required.

P9a. Three to Five year pro forma showing funding gap without TIF funding P9b. Three to Five year pro forma showing viability with TIF funding

P9c. Letter from Lending Institution(s) regarding project funding committed

Section 7: Site Information (Fill out for each parcel or block of parcels. Attach additional sheets as necessary.)

Is this the main parcel or an additional parcel? X Main parcel Additional parcel

MCAD account number: Property ID: 194021 Geographic ID: 480423090005000

Street address: 522 University Parks Drive, Waco, Texas

Current use: Vacant Land

Size of current building(s): N/A

Acreage: 6.526

Estimated purchase price: N/A

Does applicant own project site, have an option to purchase, have a contract to purchase, or plan to lease project site?

OWNS

70

Employment Data: (provide employment data as full time only if those jobs consistently provide 40 hours/week or more with benefits. Otherwise state those positions as part-time jobs. If benefits are provided to full or part-time employees, please describe amount and conditions). The Business Occupancy must be known & secured by a lease, or a signed letter of intent to lease upon project completion. If the applicant cannot ensure the new jobs will be created, do not include the job numbers here for review (because job numbers shown here can be required as a performance function of the contract).

Employment (FTEs):

New full time jobs created in Waco: 160 Existing full time jobs retained in Waco:

New part time jobs created in Waco: 50 Existing part time jobs retained in Waco:

Number of employees in demolished buildings:

Business and Sales Impact: Estimated annual hotel occupancy receipts: (if applicable)

P10: Will there be new business Personal Property? YES NO

New business personal property: (include furniture, fixtures, machinery, equipment, etc.)

Business personal property depreciation rate:

Value of taxable inventory: (if applicable)

Estimated annual retail sales: (if applicable)

Estimated gross annual revenue (from retail sales): (if applicable)

Percent of budget to be spent locally: (if applicable)

Section 8: Employment and Economic Impact Data

71

Section 9: Applicant Contact Information

Applicant Secondary Contact: Legal name of Applicant: Brazos Condos I LP Company name: APCS Signatory name: Joseph G. Beard Contact Name: Mike Anderson Title: General partner Title: President Street address: 3100 Monticello Avenue, Ste.

600 Street address

City, state, ZIP Dallas, Texas 75205 City, state, ZIP

Office phone: 214.515.7000 Office phone: 972.977.3500 Cell phone: Cell phone: 972.977.3500 Fax: Fax: E-mail address: Joe. [email protected] E-mail address: [email protected]

Principals of Applicant Company (if applicable)

Name Title Full address Phone

Attach the following applicant-related documents: A1a. Company resume (One page history of other, similar developments the applicant or its close affiliates)

A1b. Qualifications (One paragraph describing the qualifications of each principal involved with the project.)

72

Section 10: Company Information (Applicant only)

Is applicant a (check one): Sole Proprietorship X Partnership Corporation

(Please fill out the relevant section, below):

If applicant is a Sole Proprietorship, complete the following: Name of sole proprietorship: Date sole proprietorship was established: If applicant is a Partnership, complete the following: Applicant is a (check one): General partnership X Limited partnership Date of partnership agreement:

6/28/11

Has applicant done business in the State of Texas: X Yes No If yes, please state date, location, and type of business conducted (add additional pages if necessary): Date: Location: Type of business:

6/28/11 522 S. University Parks Drive Real Estate Investment

List the following for each general or limited partner: Name Street Address City, State, ZIP Phone

JGB Ventures I, Ltd (GP)

3100 Monticello Ave, Ste 600 Dallas, TX 75205 214-515-7000

Westdale Properties 3100 Monticello Ave, Ste 600 Dallas, TX 75205 214-515-7000 America I, Ltd (LP) RKS Brazos, LLC (LP) 601 Sonterra Blvd San Antonio, TX 78258 210-490-2500

If applicant is a Corporation, complete the following: State of incorporation: Date of incorporation: Is applicant authorized to do business in the State of Texas?

Yes No

Applicant is a (check one): Publicly held corporation Privately held corporation

If publicly held, how and where is stock traded: List the following for each officer and director of the applicant: Name Title Street Address City, State, ZIP Phone

Attach the following applicant-related documents based on the form of the applicant company: If applicant is a corporation or is affiliated with a corporation:

A2a. Articles of Incorporation A2b. Certificate to do business in the State of Texas (Issued by the Office of the Secretary of State)

If applicant is a Partnership: A2d. Partnership Agreement

If applicant is a Sole Proprietorship: A2e. DBA Certificate

73

Section 11: Financial Information

Has any surety or bonding company ever been required to perform upon applicant’s default? (If yes, attach a statement naming the surety or bonding company, date, amount of bond, and the circumstances surrounding said default and performance.)

Yes No

Has applicant, (including any partner, member or agent) ever been declared bankrupt? (If yes, state date, court jurisdiction, under which bankruptcy chapter, amount of liabilities, and amount of assets.)

Yes No

Has applicant (including any partner, member or agent) been involved in prior or pending litigation, liens, or claims against the applicant, as they pertain to applicant’s experience with the development of real estate? Provide on attached sheets detailed information regarding ALL prior or pending litigation, liens, or claims against the Applicant, as they pertain to Applicant’s experience with the development of real

Yes No

estate.Is the applicant current on all payment of taxes and assessments (i.e., City, County,School, payroll, sales, PID assessments, etc.?) (If not, please explain on attached sheets.) Yes No

Applicant Federal Tax ID Number/EIN

Location of IRS Center where Federal Income Tax Returns filed:

Attach the following applicant-related documents:

A3. Letter of commitment for financing from a financial institution

See supplemental info for Hotel

financing

A4. Surety or bonding information (if applicable)

A5. Bankruptcy information

A6. Prior/pending litigation information

A7. Tax payment information

A8. PID assessment payment information (if applicable)

A9. W-9 (please fill out and attach a W-9 form)

A10. Report on status of any prior TIF funded projects –

74

Section 12: Applicant Certification

I hereby assure that no City of Waco City Council member, no member of a City board orcommission, or any City employee would have any financial interest, direct or indirect, in anyassistance that may be provided to the Applicant or affiliates for the project described hereinexcept as disclosed in writing by the applicant.

I understand that the information contained in this application and any supportingdocumentation is subject to the Texas Public Information Act once the City Council makes afinal decision.

I agree that Tax Increment Financing is a discretionary program. I have no right to receivetax increment financing, and the TIF Policy does not create legal rights. The City mayterminate my application for TIF at any time, for any reason.

I understand that the execution of this Acknowledgement does not constitute a contract oragreement with the City, or a promise of the City to enter into a contract or agreement.

I understand that any changes in the project (total scope, aesthetics, building materials,parking, occupancy/use, project budget, financial partners or institutions, or other substantivechanges) from what is presented in this application, and what is approved by the Waco CityCouncil, must be approved by the City Manager (or designee) prior to construction. If not,the TIF funding may be decreased, recaptured, or cancelled.

I certify that all the information requested by this application has been provided.

I certify that all the information provided herein is true and correct.

APPLICANT

____________________________________________

Signature

____________________________________________

Printed Name

_____________________________________Title

_______________________Date

75

Source of Incentive Dollars Description Term and

Payment1 $1,854,832 Paving Improvements 2 $884,917 Water Improvements3 $1,002,996 Sanitary Sewer Improvements

4 $2,000,000Oncor Relocation - NOTE:these funds will go directly to City of Waco to organize and contract the work in

conjunction with Brazos Promenade.$5,742,745

5 $1,014,000 g g

(Note 1)6 $579,498 Additional Improvements 5'Out7 $521,881 Demolition of Condos

$2,115,379TOTAL TIF ASK $ 7,858,124 Notes:

Multifamily Estimate $78,641,645Apartment Units 400 Proposed Drury Hotel Plaza project vs. Conventional Structured Parking 600 AdditionalSurface Parking 50 Line Items CostsRetail Estimate $4,389,000 1. Structured Parking - Urban Style Development 4,709,250$ Retail 30,000 SF 2. High Rise Construction - 11 Story Building $ 3,965,000 Total MF and Retail Incentive Ask $5,742,745 3. Conference Center $ 2,150,000

4. In Hotel Restaurant/Bar $ 815,000

5. Sixth Floor Pool Deck Ammenity $ 550,000

Hotel Project Estimate $ 40,091,075 6. Materials of Construction - Façade $ 1,025,750 Rooms 160 7. Materials of Construction - Interiors $ 763,500 Hotel Parking Spaces (Garage) 168 TOTAL ADDITIONAL COST $ 13,978,500 Public Parking Spaces (Garage) 39Total Parking 242Stories 11In Hotel Bar and Restaurant yesRoof Top Amenity yesPool and Fitness yesConference Center yes

Ask $2,115,379

Brazos Commons Mixed Use Incentive Package - Detail of RequestMultifamily: 400 units; Retail: 30,000 square feet; 650 total parking spaces

TIF 8 years - see terms in Note 2

Drury Hotel: 160 rooms, 237 total parking spaces (69 public parking spaces)MF & Retail Incentive

Multifamily and Retail - Waco River Front Project Data

2. Requested Terms of the TIF agreement Payout:

Drury Plaza Hotel -Brazos Riverfront - Project Data

TIF 8 years - see terms in Note 2

1. Funding for public parking infrastructure in the hotel garage to be paid out of TIF fund. Hotel will own and operate. City will receive any sales tax funds from public parking fees (if any). Drury will receive after tax revenue( if any).

(1) Term of the agreement is 8 years(2) Payments to occur bi-annually (total of 14 payments including carried interest over the term of the (3) Payments to begin one year after a Certificate of Occupancy is received on either the hotel or the multi-(4) Carried interest to be paid over the term of the agreement will be tied to LIBOR plus 2.

Hotel Incentive

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Location Map

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Clay Avenue|Extension to Riverfront78

BRAZOS RIVER

S . UNIVERSITY PARKS DR.

Parcels at University Parks Drive & Clay Ave.

BLOCK A S LEVEL MULTI-FAMILY BLOCK 170,000 SF RESIDENTIAL (170

UNITS) 2 LEVEL PARKING GARAGE (218 PARKING SPACES · 15,000

SF RETAIL) 34 SURFACE PARKING SPACES

BLOCK B S LEVEL MULTl·FAMILY BLOCK 220,000 SF RESIDENTIAL (219 UNITS) 6 LEVEL PARKING GARAGE (486 PARKING SPACES ·15,000 SF RETAIL)91SURFACE PARKING SPACES

• HOTELPARKING

• RESIDENTIAL• RETA IL BELOW

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Clay Avenue Extension/Fire Lanes

80

Description: Water Improvements

81

Description: Sanitary Sewer Infrastructure Improvements

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Brazos Promenade Request

Brazos Promenade Background Information On November 4th, 2016, the TIF Board recommended funding of up to $12,244,750.00 to Catalyst Urban Development, LLC, (Catalyst) for the Brazos Promenade (Riverfront Development) project. The investors intend to invest $86,000,000 to $97,000,000 in the project to bring it to complete fruition. The City Council approved the project and funding on December 6th, 2016. The allocated funds will pay for a multitude of public improvements in Phases I, II and III of the Brazos Promenade project. The funded improvements include extensive new infrastructure on-site and off-site, the redevelopment and beautification of University Parks Drive from IH-35 to Franklin Avenue, construction of the public portion of the parking garage, improvements to the Farmers Market area and the waterfront, subject to the City and Catalyst entering into a Master Development Agreement. City management has been working with Catalyst for the last several months to negotiate the Master Agreement and the 380 Grant Agreement. Based upon these negotiations Catalyst is returning to the TIF Board to request approval to amend the project’s development from three phases to four phases. They believe that splitting Phase 2, which includes the development of the hotel with the development of a name brand restaurant, into 2 distinct phases will facilitate their negotiation process for the hotel component and the restaurant component if they are independent of one another.

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Downtown Market Study – Vendor

Recommendation

Downtown Market Study Vendor Background Information At the direction of the TIF Board and TIF Task Force, a Request for Qualifications (RFQ) was developed by city staff, consultant Sarah Roberts of KSR Capital, LLC, and the TIF Task Force in order to select the most qualified vendor to conduct a Downtown Market Study. The RFQ was issued by the City Purchasing Department on June 6th, 2017, and eight responses were received on July 12th, 2017. City staff and the Consultant (Sarah Roberts) functioned as the initial “review team” – reviewing and scoring the eight potential vendors against the scope of work requested in the RFQ. The eight vendors were narrowed down to four based on the scoring process. The review team then presented the results to the TIF Task Force with a recommendation to hold interviews with the top four candidates. The interviews were held on August 28th and August 30th. James Nelson, Mayor Kyle Deaver and Malcolm Duncan attended the interviews and shared their thoughts on the candidates, as well. The candidates were scored again by the review team based upon the oral interviews. The vendor with the highest final score based on the interview process was Economic Planning Systems, Inc. out of Denver, Colorado. These results were provided to the TIF Task Force. The Task Force and staff recommendation is to pursue a contract with Economic Planning Systems as the vendor of choice to conduct the Downtown Market Study. Pending TIF Board approval, a contract will be negotiated with the cost of the services within the $60,000 allocated by City Council. The contract will then go to City Council for final approval by City Council Resolution (per city policy, contracts for services of more than $50,000 require City Council approval). Staff anticipates this agenda item to be presented for consideration of the City Council on November 7, 2017.

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TIF ZONE 1 BOARD MEETING PACKET September 14, 2017

Documents

Transcript of TIF ZONE 1 BOARD MEETING PACKET September 14, 2017