Ord 2014-027/Dedicating fifty percent of its tax increment from the FM 110 transportation reinvestment zone and approving an interlocal agreement with Hays County

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WHEREAS, in order to pay for the Project costs pursuant to the AFA the County intends to assign, pledge and transfer its right to receive the portion of the taxes collected on property located in the San Marcos Zone and remitted by the City to the County pursuant to the TRZ Dedication Ordinance and this Agreement; and WHEREAS, the City's obligation to contribute a portion of the taxes collected on property within the San Marcos Zone shall be a limited obligation of the City, payable solely from the revenue derived from the tax increment of the San Marcos Zone, and the County's obligation under the AFA shall not be an obligation of the City and shall not be payable from taxes or any other revenues of the City other than revenues derived from the tax increment of the San Marcos Zone unless otherwise specifically authorized by the City through separate action; and WHEREAS, the City Council adopted the TRZ Dedication Ordinance to acknowledge, consent to, and confirm that the City will assign, pledge and transfer a portion of the taxes from the San Marcos Zone to the County to contribute to the payment of the "State Participation" portion of the amount owed under Attachment C to the AFA (the "AFA Obligation ") for so long as the AFA Obligation is outstanding, and to authorize entering into this Agreement for such purpose. NOW, THEREFORE, City and County, in consideration of the terms, conditions and covenants contained herein and other good and valuable consideration, and intending to be legally bound, hereby agree as follows: I. DEFINITIONS Terms not particularly defined herein shall be construed as defined in Section 222.106 of the Code. The following terms shall have the following meanings when used in this Agreement: "Tax Increment" means the amount of property taxes levied and collected by the City for that year on the captured appraised value of real property taxable by the City and located in the San Marcos Zone, which shall be deposited in the Tax Increment Account. "Captured Appraised Value" of real property taxable by the City for a year is the total appraised value of all real property taxable by the City and located in the San Marcos Zone for that year less the tax increment base of the City. "Pledged Tax Increment" means one -half of the Tax Increment collected by the City and deposited to the Tax Increment Account and which shall be periodically remitted to the County pursuant to the terms of this Agreement. "Tax Increment Base" means the total appraised value of all real property taxable by the City and located in the San Marcos Zone on January 1, 2013. "Tax Increment Account" means an account established by the City pursuant to the Adoption Ordinance, into which all the Tax Increments are to be deposited upon receipt by the City, as further described under Section 222.106 of the Code. II. AGREEMENTS BY THE CITY The City hereby acknowledges, consents to, and agrees as follows: A. The recitals of the Adoption Ordinance and the TRZ Dedication Ordinance are incorporated into this Agreement as if fully set forth herein. B. The City shall deposit the entirety of the Tax Increment, upon receipt, into the Tax Increment Account. C. The City hereby assigns, pledges, transfers and remits the Pledged Tax Increment for the San Marcos Zone to the County to fund costs of the financing, acquisition, and construction of the Project, which the City has determined will benefit the City and its residents. -2-