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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ORDINANCE NO. 2014 -27 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS DEDICATING FIFTY PERCENT OF ITS TAX INCREMENT FROM THE FM 110 TRANSPORTATION REINVESTMENT ZONE AND APPROVING AN INTERLOCAL AGREEMENT WITH HAYS COUNTY WHEREAS, Section 222.106 of the Texas Transportation Code (the "Code ") allows for the creation of a municipal transportation reinvestment zone ( "TRZ ") for the purpose of promoting a transportation project which will promote public safety; facilitate the improvement, development, or redevelopment of property; and facilitate the movement of traffic; and WHEREAS, the City of San Marcos, in conjunction with Hays County (the "County ") and the Texas Department of Transportation ( "TxDOT "), is currently pursuing improvements to, and the extension and expansion of, FM 110 (the "Project "); and WHEREAS, on December 17, 2013, the City Council of the City of San Marcos (the "City Council ") passed, approved, and adopted on second reading Ordinance No. 2013 -69 (the "TRZ Ordinance ") establishing "Transportation Reinvestment Zone Number One, City of San Marcos" (the "Zone "); and WHEREAS, on May 20, 2014, the City Council passed, approved and adopted Ordinance No. 2014 -26, which corrects a clerical error in the attachments included within the TRZ Ordinance; and WHEREAS, on December 10, 2013, the Hays County Commissioners Court (the "Commissioners Court"), pursuant to Section 222.107 of the Code, adopted an order (the "Adoption Order "), a true and correct copy of which is attached hereto as Exhibit "A ", authorizing the creation of "Transportation Reinvestment Zone Number One, County of Hays ", and committing one -half of the incremental taxes collected by the County on property located in such transportation reinvestment zone to fund development of the Project; and WHEREAS, the TRZ Ordinance acknowledged the City's intention to take further action to dedicate a specified portion of the tax increment generated from the Zone for use in the reimbursement of TxDOT for costs related to the Project pursuant to the terms of an advance funding agreement ( "AFA ") between TxDOT and the County; and WHEREAS, the TRZ Ordinance also reflected the City's intent to enter into an interlocal agreement with the County whereby the City would agree to remit the specified portion of the tax increment to dedicated to the Project to the County for use in funding costs under the AFA; and in which the County would commit to using its tax increment as identified in the Adoption Order to fund costs under the AFA; and WHEREAS, a true and correct copy of that interlocal agreement is attached hereto as Exhibit `B ".