ORD 2021-037/ Amending Project Plan and Reinvestment Zone Financing Plan for Tax Increment Reinvestment Zone No 5 Downtown TIRZ

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AMENDMENT TO INTERLOCAL AGREEMENT BETWEEN HAYS COUNTY AND THE CITY OF SAN MARCOS RELATING TO CITY OF SAN MARCOS, TEXAS TAX INCREMENT REINVESTMENT ZONE NO.5 This amendment (the "Amendment") is made to be effective as of the 18th day of May, 2021 by and between the City of San Marcos, Texas (the "City"), a home -rule municipality of the State of Texas principally situated in the County of Hays, acting by and through its governing body, the City Council of the City (the "City Council"), pursuant to Ordinance No. 2021-37, passed and approved by the City Council on May 18, 2021 and Hays County (the "County"), a political subdivision of the State of Texas, acting by and through its governing body, the Commissioners Court, pursuant to authority granted by the Hays County Commissioners Court on May 11, 2021. This Amendment is made pursuant to Chapter 791 of the Texas Government Code, as amended, and Chapter 311 of the Texas Tax Code, as amended. The City and the County may be referred to herein singularly as a "Party" or collectively as the "Parties." RECITALS WHEREAS, the City Council adopted Ordinance No. 2011-74, which designated the San Marcos, Texas Reinvestment Zone No. 5 (the "Reinvestment Zone") pursuant to Section 311.005(a) of the Tax Increment Finance Act, Texas Tax Code, Chapter 311, as amended (the "Act"); and WHEREAS, the Board of Directors of the Zone (the "Zone Board") prepared and adopted a Project Plan and Reinvestment Zone Financing Plan (the "Project and Financing Plan") for the Zone pursuant to Section 311.011 of the Act, and WHEREAS, the City Council adopted Resolution No. 2011-145R on November 14, 2011, which gave effect to the Project and Financing Plan pursuant to Section 311.011(d) of the Act, and WHEREAS, the City Council adopted Ordinance No. 2020-46 on June 18, 2020, which amended the Project and Financing Plan to add eligible projects and associated eligible project costs, including the acquisition of property for parking and other public priorities, and approved amending the tax increment participation interlocal agreement with Hays County to reduce the City's and County's contribution rate of the tax increment deposited into the tax increment fund from 70 percent to 25 percent for one year; and WHEREAS, pursuant to Section 311.011 and Ordinance No. 2021-37, the City approved an amended Project and Financing Plan to include continuing the reduced contribution rate of the tax increment attributed to the captured appraised value of the City and the County for one additional year, all as set forth and further described in the amended Project and Financing Plan (the "Amended Project and Financing Plan") attached as Exhibit A; and WHEREAS, on December 7, 2011, the Parties entered into an Interlocal Agreement (the "Agreement") related to the Reinvestment Zone providing for payments from the County to the City of Tax Increments produced from property located in the Reinvestment Zone and deposited into the Tax Increment Fund pursuant to Chapter 311 of the Texas Tax Code; and