HomeMy WebLinkAboutRES 99-126 RESOLUTION NO. _21-/
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Council hereby approves the Projects Plan and Financing Plan for
Reinvestment Zone Number One. The Plan is substantially in the form attached hereto
as Exhibit "A".
PASSED BY THE CITY COUNCIL of the City of Beaumont this the D day of
1999.
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- Mayor -
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DRAFT
PROJECTS PLAN AND FINANCING PLAN
FOR
REINVESTMENT ZONE NUMBER ONE
BEAUMONT'S CENTRAL BUSINESS DISTRICT
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- THE CITY OF BEAUMONT
CITY MANAGER'S OFFICE
AND PLANNING DIVISION
MARCH, 1999
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EXHIBIT "A"
INTRODUCTION
The Texas Tax Increment Financing Act of 1981 authorized Texas cities to use Tax Increment
Financing (TIF) as an urban revitalization tool. Tax increment financing is most commonly
associated with programs to correct urban blight and revitalize central business districts.
Beaumont's City Council designated a portion of the city's downtown area as a Reinvestment
Zone for the purposes of Tax Increment Financing in November 1982, and appointed a Board of
Directors to oversee the TIF program.
Among the requirements of the Tax Increment Financing Act are the preparation and adoption of
plans for the Reinvestment Zone describing existing conditions and specifying proposed
u;;rro�e ,er.ts a-nd sources of financinv. This document is in:cnded to meet the leJal
requirement for Projects and Financing Plans and to prop ide a unified strategy for rep italiz,:,� ti
Reinvestment Zone. Once a Reinvestment Zone has been established under Texas law and is
placed in service, tax increment financing operates as follows:
First, a tax increment base -- the total appraised value of all real property within the zone at the
time of its establishment -- is determined. As long as the zone is legally in effect, taxing entities
(city, county, school districts, and other special districts) receive tax payments for property
within the zone calculated only on the tax increment base amount. In other words, the appraised
value of real property in the zone is effectively "frozen" for the purposes of general taxation. At
this point, tax exempt Tax Increment Bonds may be sold to finance public improvements such as
streets, utilities, parking or sidewalks needed to support and attract privately funded
redevelopment projects.
As the value of property in the zone increases in subsequent years, special taxes based on the
captured appraised value -- the amount in any given year by which the current assessed value of
real estate in the zone exceeds the tax increment base -- are deposited in the City's Tax Increment
Fund. The Tax Increment Fund may be used to retire Tax Increment Bonds. Alternatively,the
accumulated deposits in the Tax Increment Fund may be used to finance public improvements on
a"pay as you go"or cost reimbursement basis.
The Downtown Reinvestment Zone Projects Plan and Financing Plan are required by the Texas
Tax Increment Financing Act. A Project Plan provides a summary of existing conditions and
proposed future development in the zone. A Financing Plan presents estimated costs, timing and
proposed methods of financing proposed projects.
Projects completed to date with tax increment revenue are land acquisition and landscaping for
the Southeast Texas Art Museum ($265,000) and Tyrrell Historical Library renovations
f . ($430,000), and land acquisition and demolition of the former LaSalle Hotel ($510,000).
1
DEVELOPMENT GOALS AND OBJECTIVES
Goals and objectives are needed to provide direction to planning studies; to identify specific
areas of concern to be researched and evaluated in the planning process; to provide a mechanism
for reflecting public input; and to provide for monitoring and evaluating the success of
implementation actions.
The following development goals are the basis for the Downtovm Reinvestment Zone Projects
Plan:
* Establish the Central Business District as the banking, government, professional office,
convention and entertainment center of Beaumont and the Southeast Texas region.
Ercou.ase nest' investment of private capital funds ir. !-I, Tax Increment Zone.
* Use public investment in the Tax Increment Zone to "leverage" the investment of private
funds.
* Provide a diversified mixture of entertainment, medium and high density housing,
recreational, and dining opportunities in the Tax Increment Zone to stimulate tourist
and convention business as well as a local population basis that resides in the downtown
area as permanent residents.
* Encourage the renovation and"adaptive re-use"of architecturally or historically
significant structures in the Reinvestment Zone.
* Improve the public image of the downtown area.
* Improve transportation access to the Reinvestment Zone.
* Maintain an adequate supply of parking to support economic growth in the Reinvestment
Zone.
* Expand local employment opportunities by stimulating physical and economic growth
in the Reinvestment Zone.
* Encourage the development of new housing opportunities and retail and service
establishments in the Reinvestment Zone to serve the growing"daytime population"
1 of office workers. New housing opportunities downtown may convert a portion of the
"daytime population"to permanent downtown residents.
* Increase the tax base within the Reinvestment Zone through promoting new construction
and renovation projects.
2
PROJECTS AND FINANCING PLANS
The Projects Plan consists of a proposed plan of action for the physical development of the
Downtown Beaumont Reinvestment Zone. Implementation of the plan will involve financing
mechanisms dependent upon tax increment financing to reimburse the project expenditures. The
most specific proposals relate to short-range, public sector improvements. The plan deals with
long-range public improvements and private development projects in a more generalized manner.
The current Downtown Reinvestment Zone consists of a 34-block area in the Central Business
District (CBD). The boundaries of the Reinvestment Zone were expanded by four blocks in
1994. Figure I shows the current boundaries of the zone within the City of Beaumont.
A land us: sun'ev condUcted b% the Beaumont Planni„_ D:%;si,,n % ithin the Rcimestment
Zone and along it boundaries in `larch 1999. Land uses recorded using a s%stcm of eight
categories. Vacant buildings were noted and classified according to the last apparent use. The
results of the land use survey are shown in generalized form in Figure 2. Tablet shows the
tabulated results of the survey within the Reinvestment Zone.
Not surprisingly, the predominant land uses in and around the zone were found to be offices,
banks and retail or service outlets. Large office buildings housing two major utility companies --
Entergy/Gulf States Utilities and Southwestern Bell -- and the Beaumont Enterprise are located
just outside the northeastern edge of the zone. The southeastern portion of the Reinvestment
Zone is dominated by city government facilities, including the Convention Center, the Julie
Rogers Center for the Performing Arts and the Tyrrell Library. These facilities combine with the
City Hall, the downtown Public Library, the Municipal Court/Police Station, and the Jefferson
County Courthouse to form an eight-block City/County complex. Riverfront Park is located
adjacent to the Reinvestment Zone on a five-acre tract between the City government complex
and the Neches River.
The central portion of the Reinvestment Zone is dominated by banks, retail and service
establishments and major office buildings. Residential properties in the Reinvestment Zone
include the Beaumont Retirement Hotel at Orleans and Fannin, two residents living in the Nathan
Building on the northwest corner of Crockett and Orleans, and a few small frame single-family
residences located near the intersection of Trinity and Forsythe. The building located at the
northeast corner of Pearl at Bowie is currently being renovated for residential housing.
Figure 3 shows the building outline of the permanent structures within the Reinvestment Zone.
5';• As shown by the Land Use Survey, 28%percent of the land area within the Reinvestment Zone
is buildings; the remainder is accounted for by street rights-of-way, public parks or open space,
surface parking and vacant land.
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In a survey conducted in March 1999, 20 buildings surveyed in the Reinvestment Zone appeared
to be vacant. This compares to 17 buildings being vacant in 1994. Additionally, many of the
older buildings were occupied at the ground level but appeared vacant or used for storage on
upper stories. Figure 4 shows the structures identified as vacant in the survey.
Structures were also visually surveyed and classified using a three-tiered structural condition
scale. Structures were rated according to the following system:
CATEGORY 1: Buildings in good condition; newly renovated or well-maintained structures
with no apparent structural or cosmetic deterioration.
CATEGORY 2: Buildings in need of moderate exterior repairs, renovation or cosmetic
improvements.
CATEGORY 3: Buildings in need of substantial renovation.
The findings of the structural condition survey are shown in Figure 5.
The general concept plan for physical development of the Reinvestment Zone is shown in Eigur
6. The major features of the concept plan are to develop "mixed use" areas featuring offices,
retailing, services, housing and entertainment; to develop an improved system of major
thoroughfares, parking facilities and pedestrian ways; and more efficiently use downtown
property through "infill" development on vacant sites, clearance and demolition activity and
renovation and adaptive reuse of historic structures when it is economically feasible to do so.
There are a number of projects located in the Reinvestment Zone that are either in the planning
stage or under construction that will greatly enhance the downtown area. All of the projects are
consistent with the development goals and objectives. The projects are as follows:
1)Crockett Street -The Beaumont City Council approved a Section 108 loan for the Crockett
Street Project in the amount of$3,000,000 in August of 1998. The total project cost is estimated
at $5,700,000. The project is the redevelopment of the "Dixie Street" commercial block in
downtown Beaumont. The developers plan to redevelop the two story historic storefront
buildings into a combination of entertainment, eating, and drinking establishments.
Approximately 300 permanent jobs would be created upon completion of the project.
Construction should begin in the Summer of 1999.
2)Hotel Beaumont - The Council approved a request from the National Development Council
for Section 108 funding in the amount of$3.175 million in December of 1998. The National
Development Council has plans for the complete renovation of the Hotel Beaumont, located at
625 Orleans Street. Currently, there are 75 occupied units at the Hotel Beaumont with plans to
increase that number to 135 after the renovation is complete. The rehabilitation will be
completed over a 12 month period and construction is anticipated to commence in the Summer of
1999. The total anticipated project cost is $7,495,000.
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3) Jefferson Theater- Council approved Section 108 funding in the amount of$2,000,000
in September of 1998. Built in 1927 by the Jefferson Amusement Company as an American
Movie Palace, this 1500 seat theater hosted stage and cinema events drawing audiences from
southeast Texas and southwest Louisiana. The Theater will be restored as close as possible to its
original design. In 1996, a concentrated effort was initiated to mobilize over 150 civic leaders
and area citizens to undertake a comprehensive planning process and capital campaign with a
goal of raising $3,000,000 (this is in addition to the $2,000,000 loan from the City).
4) Municipal Court Building - The City acquired the former` "hite House building located at 700
Orleans for$126,000, and the first floor is being renovated for the relocation of the Municipal
Court. The estimated construction cost is $1,550,000 and the renovation should be complete by
May of 1999.
5) Jefferson County Community Supervision Department - Jefferson County is renovating the
former Beaumont Independent School District Administration Building located at the corner of
Neches and Wall. The estimated construction cost is $500,000 and the renovation should be
completed by September of 1999.
As part of the downtown revitalization effort, the City is planning street, sidewalk, landscaping
and lighting improvements downtown at a total cost estimated at $1,200,000. Phase I includes
brick paving the sidewalks and street, and making landscaping and lighting improvements on
Crockett Street between Main and Pearl. The estimated cost of the improvements is$540,000.
Also, the Developer has requested the construction of gateway arches with the inscription
"Crockett Street"which would cost an estimated $100,000. The estimated total cost of these
improvements in Phase I totals $640,000. Phase II includes sidewalk, landscaping, and lighting
improvements on Orleans Street from Wall to Crockett and on Fannin between Pearl and
Orleans. The estimated cost for improvements in Phase II is S560,000. The improvements in
Phase II would complement the Jefferson Theatre, new Municipal Court, and Hotel Beaumont.
The improvements proposed in the development concept plan will result in a more positive
image for Beaumont and the downtown area and will advance the City Council's officially
adopted policy of making the Central Business District a regional center of business and culture.
The City of Beaumont's Land Use Plan is an official statement of goals, objectives,policies and
proposals for guiding Beaumont's long-range growth and development. The Land Use Plan
proposes making the downtown area a regional center of banking, professional service,
government, conventions, tourism and entertainment.
The proposed land use plan for the Reinvestment Zone is sho,%ti-n in Figure 7. The land use plan
is based upon a land use plan originally proposed in the Central Business District Development
Plan in 1973 with modifications as required by changed conditions, new development and
programmed new projects. The proposed Projects Plan is consistent with Beaumont's
Comprehensive Plan.
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Proposed street, sidewalk, landscaping and lighting improvements, and their estimated costs are
shown in Table 2• Figure 8 shows the locations of the proposed improvements. The
jimprovements and development concept proposed in this plan are in accordance with existing
official city plans and ordinances.
s The Texas Tax Increment Financing Act requires a Financing Plan to be prepared for each
Reinvestment Zone. The Financing Plan must include descriptions of project costs, financing
techniques, revenue sources and financial feasibility information.
S
The proposed financing plan for the City-sponsored projects within the Zone is to arrange a loan
in the amount of$1,200,000 from local banks for the proposed improvements. The banks would
! be repaid over a ten to twelve-year period with annual tax increment revenue from the Tax
' Increment Fund.
Accomplishing the projects outlined in the Projects Plan ultimately from tax increment revenue
` is economically feasible. The captured appraised value of the Zone produced $850,000 from
1988 through fiscal year 1998.
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Table 1
EXISTING LAND USE
DOWNTOWN BEAUMONT REINVESTMENT ZONE
MARCH 1999
LAND USE ACRES NTOTAL
SURFACE PARKI\'G &_ VACANT 34.?6 3 7.0
PARKS AND OPEN SPACE 1.43 1.6
GOVERNMENT 4.43 4.8
QUASI-PUBLIC 4.71 5.1
RESIDENTIAL .39 .42
- OFFICESBANKS 6.17 6.7
RETAIL & SERVICES 6.06 6.5
WHOLESALEMISTRIBUTION/ 2.66 2.9
- INDUSTRIAL
PARKING GARAGES 1.5 1.6
SUB TOTAL 61.61 66.6
i STREETS 30.94 33.4
TOTAL 92.55 100
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BUSINESS BUILDING COVERAGE
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Table 2
PROPOSED PROJECTS AND FINANCING PLANS
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P or iect Funding Source j,tart/FinisW
Estimated Cost Estimated
Phase I $540,000 Local Banks September 1999/March 2000
Crockett Street
between Main
and Pearl
Gateway Arches $100,000 Local Banks In Planning Stage
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Phase II $560,000 Local Banks April 2000/December 2000
Orleans and
Fannin Street
improvements
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Phase I includes brick paving the sidewalks and street, and making landscaping and lighting
1 improvements on Crockett Street between Main and Pearl. The improvements would
complement the Crockett Street Project.
Gateway arches with the inscription "Crockett Street'would be constructed at Main and
Crockett and Pearl and Crockett.
.' Phase II includes sidewalk, landscaping, and lighting improvements on Orleans Street from Wall
to Crockett and on Fannin between Pearl and Orleans. The improvements would complement
y the Jefferson Theatre, new Municipal Court, and Hotel Beaumont.
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CENTRAL STREET, SIDEWALK &
BUSINESS LANDSCAPE IMPROVEMENTS
DISTRICT. Phase 1 Crockett. between
Main and Pearl.
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Phase 2 -•. Orleans. between
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Figure 8 MARCH'99
COST ESTIMATE
CROCKETT STREET
1 Remove old sidewalks 16,000 square feet x 51.25/square foot = S20,000.00
2 Brick paver sidewalks 31,250 square feet x 58.50/square foot = $265,625.00
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3 Brick paver street 11,700 square feet x S8.50/square foot = S99,450.00
4 C, ...:e c::rb a;-.d _u::er �Crock-e.. b2- ._.ea_- foe, x S3,C.CC .._.__ foot = SIS. 0.X)
5 Milling (min.) 1 each x 54,500/each = S4,500.00
6 Street lighting 42 each x $1,500/each = $63,000.00
7 Tree wells with tree 13 each x S750/each = $9,750.00
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8 Raise planters 4 each x $1,500/each = $6,000.00
9 Raise manhole/catch basin 3 each x S800/each = $2,400.00
10 Irrigation allowance l is x$10,000/ls = $10,000.00
11 Electrical conduit 750 feet x$12/foot = S9,000.00
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12 Storm sewer allowance 625 feet x $50/foot = $31,250.00
�s TOTAL $539,725.00
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COST ESTIMATE
CROCKETT STREET
1 Gateway Arch 2 each z $50,000/each = $100,000.00
TOTAL $100,000.00
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BEGINNING TIF RECEIVABLES FOR TAXYEARS 1996-1998
a FOR BEAUMONT TAX INCREMENT ZONE
TAXYEAR COUNTY BISD CITY BMT BMT PORT DDS NAV LAT RD TOTAL
1986 12,106.90 0.00 34,807.36 2,522.39 9,856.55 353.13 0.48 $59,646.81
v
1987 11,536.85 0.00 33,168.48 2,403.61 9,392.45 336.51 0.00 $56,837.90
1988 10,188.77 0.00 26,199.73 2,426.00 9,479.94 339.64 0.00 $48,634.08
1989 10,106.04 0.00 23,222.34 2,150.31 8,402.62 301.05 0.00 $44,182.36
1990 10,515.71 0.00 20,648.91 1,912.04 7,471.47 267.71 0.00 $40,815.84
1991 17,785.54 21,757.10 33,406.63 2.861.78 10.873.95 402.94 0.00 $87,087.94
1992 19.903.27 28,098.77 29,911.88 4,044.75 10,408.87 739.42 0.00 $93,106.96
1993 16,284.81 68.752.53 23,023.80 3,742.97 8,360.58 610.10 0.00 $120,794.79
1994 15,081.93 61,436.79 19,008.98 3,325.18 7,619.90 552.25 0.00 $107,023.03
1995 11,143.36 42,694.02 15,225.20 2,227.78 5,929.99 572.24 0.00 $77.792.59
1996 10,656.07 41,47214 14,415.25 2,130.35 5,761.14 560.70 0.00 $74,995.65
1997 8,755.16 35,500.46 11,455.08 2,120.01 4,798.29 466.99 0.00 $63,095.99
1998 12,621.82 51,870.60 18,554.54 2,850.65 6,917.42 622.46 0.00 $93.437.49
TOTAL $967,451.43
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