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EGMSY_ekqAutoList40A.1.A.A.A.A.A.A. !%  87  .  _ԀTex.TaxCodeAnn.Section311.011(d)(VernonSupp.2001) !%  88  .  _ԀTex.TaxCodeAnn.Section311.011(e)(VernonSupp.2001) !%  89  .  _ԀSee,Tex.TaxCodeAnn.Section311.011(b)(VernonSupp.2001) !%  90  .  _ԀSee,Tex.TaxCodeAnn.Section311.011(f)(VernonSupp.2001) !%  91  .  _ԀSee,Tex.TaxCodeAnn.Section311.015(Vernon1992)  (-(-   !%  92  .  _ԀTex.TaxCodeAnn.Section311.013(f)(VernonSupp.2001) N !%  93  .  _ԀId. !%  94  .  _ԀSee,Tex.TaxCodeAnn.Section311.012(VernonSupp.2001) !%  95  .  _ԀSee,Tex.TaxCodeAnn.Section311.013(VernonSupp.2001) !%  96  .  _ԀTex.TaxCodeAnn.Section311.002(l)(Vernon1992) !%  97  .  _ԀSee,Tex.TaxCodeAnn.Section311.002(Vernon1992) !%  98  .  _ԀTex.TaxCodeAnn.Section311.010(VernonSupp.2001) N !%  99  .  _ԀId. !%  100  .  _ԀTex.TaxCodeAnn.Section311.010(b)(VernonSupp.2001) O !%  101  .  _ԀId. !%  102  .  _ԀSee,Tex.TaxCodeAnn.Section311.010(d)(VernonSupp.2001) !%  103  .  _ԀTex.TaxCodeAnn.Section311.013(d)(VernonSupp.2001) !%  104  .  _ԀTex.TaxCodeAnn.Section311.017(Vernon1992) EGMSY_ekqAutoList41A.1.A.A.A.A.A.A. 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XXXX  8XXdd8  @OVERVIEWOFTHREEECONOMICDEVELOPMENTTOOLS:  @COUNTYDEVELOPMENTDISTRICTS,TAXABATEMENTAND@yyTAXINCREMENTFINANCINGCOUNTYDEVELOPMENTDISTRICTS  Countydevelopmentdistrictsprovideameansforcountiesof400,000orlesstogeneratesalestaxrevenuesandhoteloccupancytaxrevenuesforlocaleconomicdevelopmentandtourismrelatedprojects.ThestatutoryprovisionsrelatingtocountydevelopmentdistrictsaresetforthatChapter383oftheTexasLocalGovernmentCode. %         $  1       P  b (#::bb (8:b 3   3a2  A  .3  0    PowersandDuties3a݌0 (#(# Ќ  b (Eh88b 3     32Eh  1  .3  0 `   ExpendituresofTaxproceeds3݌` (#` (# Ќ  0  0` (#(#Expendituresorprojectsofadistrictarenotrequiredtobeapprovedbythecounty. (       $  2      ` (#` (#  3     32Eh  2  .3  0 `   SalesTax3݌p` (#` (# Ќ    Thedistrictcanimposeandcollectasalestaxofonefourth,threeeighths,oronehalfofonepercentifapprovedbythevotersinthedistrict. +  $  3      ׀Salestaxrevenues @ collectedcanbeusedforpurposesforwhichthedistrictwascreatedortopaybonds. -  $  4       0 Adistrictmayimposeasalestaxonlyifthecombinedsalestaxrateinanypartofthedistrictwouldnotexceedthetwopercentstatutorycapforlocalsalestaxes. 0  $  5      ׀Adistricts ` taxrateisautomaticallyadjustedtostaybelowthetwopercentcap,ifacityannexesadistrictandthisresultsinthecombinedlocalsalestaxincreasingtoovertwopercent,orifacityinwhichadistrictislocatedincreasesitssalestaxrateandthiscausesthecombinedlocalsalestaxratetoexceedtwopercent. 1  $  6      ׀Insuchcases,thecitymust,for   aslongasthedistricthasoutstandingbondstopay,reimbursethedistrictthedifferenceintheamountoftaxesthedistrictwouldhavecollectedbeforethedistrictstaxratewasreducedandtheamountthedistrictisabletochargeafterthereduction. 3  $  7       #!   Adistrictmayonitsownmotionvotetodecreaseorabolishthetax,ormaycallforanelectiontoincrease,decrease,orabolishthetax. ,  $  8       p&!$  ;   ;0  2Eh  3  .3  0` (#(#  HotelOccupancyTax;݌P(#&` (#` (# Ќ    Thecountycommissionerscourtcanimposeahoteloccupancytaxofuptosevenpercentintheareawithinthedistrictsboundariesandoutsideanycitylimits.Thetaxisremittedtothecountybyhoteloperatorsintheaffectedareaandthecounty mustremittheproceedstothedistrictwithin10daysafterthecountyreceivessuch -P(+ funds.Thedistrictcanusehoteloccupancytaxforthesamepurposesassalestaxproceeds. 6  $  9         _ ;   ;30  2Eh  4  .3  0` (#(#  DistrictProjects;3^݌` (#` (# Ќ    ThedistrictcanacquireanddisposeofthesametypeofprojectsavailabletoaSection4BeconomicdevelopmentcorporationundertheDevelopmentCorporationActof1979. .  $  10      ׀UnderSection4B,suchprojectscanincludetheland,buildings,equipment, @  facilitiesandimprovements,andrelatedfacilitiesthataresuitableforanyofthefollowing:b (08b    j0  0` (#(#2  a  .3  0 ` (#` (#  Promotionofmanufacturingandindustrialfacilities;j݌P  (# (# Ќ      0  0` (#(#2  b  .3  0 ` (#` (#  Jobcreationandretentionandjobtrainingfacilities;݌@  (# (# Ќ      0  0` (#(#2  c  .3  0 ` (#` (#  Educationalfacilitiesandfacilitiesforusebyinstitutionsofhigher 0  education;݌  (# (# Ќ      0  0` (#(#2  d  .3  0 ` (#` (#  Smallwarehouseandstoragefacilities;,݌ (# (# Ќ      0  0` (#(#2  e  .3  0 ` (#` (#  Airorwaterpollutioncontrolfacilities;B݌ (# (# Ќ      00  0` (#(#2  f  .3  0 ` (#` (#  Developmentorredevelopmentofclosedmilitarybases;0[݌ (# (# Ќ      U0  0` (#(#2  g  .3  0 ` (#` (#  Facilitiestopromotenewandexpandedbusinessdevelopment;U݌ (# (# Ќ      0  0` (#(#2  h  .3  0 ` (#` (#  Recyclingfacilities;݌ (# (# Ќ      0  0` (#(#2  i  .3  0 ` (#` (#  Distributioncenters;݌p (# (# Ќ       0  0` (#(#2  j  .3  0 ` (#` (#  Athletic_and_Ԁconvention_____facilities;_ ݌` (# (# Ќ      "0  0` (#(#2  k  .3  0 ` (#` (#  Parksandrelatedpublicspaceimprovements;"E"݌P (# (# Ќ      5#0  0` (#(#2  l  .3  0 ` (#` (#  Tourismandentertainmentfacilities;5#`#݌@ (# (# Ќ      I$0  0` (#(#2  m  .3  0 ` (#` (#  Certainpublicfacilityimprovementsthatwillpromotenewor 0 expandedbusinesses;I$t$݌  (# (# Ќ      %0  0` (#(#2  n  .3  0 ` (#` (#  Transportationfacilities;%%݌` (# (# Ќ      &0  0` (#(#2  o  .3  0 ` (#` (#  Infrastructureimprovementssuchaswater,sewage,solidwaste P disposalanddrainagetopromoteordevelopneworexpandedbusinessenterprises;&&݌  (# (# Ќ      *(0  0` (#(#2  p  .3  0 ` (#` (#  Otherimprovementsorfacilitiestopromoteneworexpanded   businessenterprises;and*(U(݌  (# (# Ќ      z)0  0` (#(#2  q  .3  0 ` (#` (#  Affordablehousing. /  $  11      z))݌"  (# (# Ќ  b (00b  5. ` PaymentofCosts $"   Adistrictmaypayallnecessarycostsandexpensesincurredinthecreationandorganizationofthedistrict.Inaddition,adistrictcanusethesamedefinitionofwhatisapermissiblecostasappliestoaSection4Bdevelopmentcorporation. 2  $  12      ׀Suchproject P(#& costsencompassthecostofacquisition,construction,reconstruction,improvement,andexpansion,andincludesuchcostsas:   +p&)     -0  0` (#(#2  a  .3  0 ` (#` (#  Landandfacilityimprovementssuchascostofacquisition,   construction,improvement,expansionandacquisitionofrightofway;--݌  (# (# Ќ      #/0  0` (#(#2  b  .3  0 ` (#` (#  Machinery,equipmentandsupplies;#/N/݌ (# (# Ќ      400  0` (#(#2  c  .3  0 ` (#` (#  Financialtransactioncosts;and40_0݌p (# (# Ќ      C10  0` (#(#2  d  .3  0 ` (#` (#  Planningcostssuchasresearchanddevelopment,engineering `  andlegalservices,developmentofplansandspecifications,surveys,costestimates,andotherexpensesnecessaryorincidenttodeterminingthefeasibilityandpracticabilityofundertakingtheproject. 4  $  13      C1n1݌ p  (# (# Ќ    6.0 ` AbilitytoBorrowFundsP ` (#` (#   Adistrictcanborrowmoneyforpurposesrelatedtothedistrictsfunctionsandcanissuebondstopayforallorpartofthecostsofitsprojects. 5  $  14      ׀Principalandinterest   onthebondsmaybepaidwiththedistrictssalestaxrevenues,projectrevenues,oranygrants,donationsorotherfunds. 7  $  15      ׀Bondproceedscanbeusedtopayintereston  thebondsduringacquisitionorconstructionofaproject,administrativeandoperatingexpensesofaproject,tocreateareserveforbondrepayment,andtopayallexpensesthatwereincurredduringtheissuance,saleanddeliveryofthebonds. 9  $  16        b (80b 3     372  7  .3  0 `   MunicipalManagementDistrictPowers37/8݌`` (#` (# Ќ    AdistricthastheauthoritytoexerciseallpowersandrightsofamunicipalmanagementdistrictunderChapter375oftheLocalGovernmentCodeunlessinconsistentwiththeprovisionsapplicabletocountydevelopmentdistrictsunderChapter383oftheLocalGovernmentCode. :  $  17       ` b (%88b 3     3:2%  8  .3  0 `   Eminent_Domain*_3: ;݌@` (#` (# Ќ    Adistricthaslimitedpowersofeminentdomain.Adistrictlocatedoutsideofamunicipalitymayacquirethrougheminentdomainlandorinterestsinlandforwaterorsewerpurposes. ;  $  18       "  b (դ88b 3     3n=2դ  9  .3  0 `   AbilitytoSueorbeSued3n==݌$"` (#` (# Ќ    Adistrictmaysueorbesuedinthenameofthedistrictinanycourtinthestate. =  $  19       `'"% b (8 8b 3     3?2  10  .3  0 `   CompetitiveBidding3??݌@)$'` (#` (# Ќ    AdistrictmustcomplywithcompetitivebiddingprovisionsapplicableunderSection375.221oftheTexasLocalGovernmentCodetomunicipalmanagement ,`'* districtsforcontractsforgoodsorpropertyinexcessof$15,000unlessthecontractiswithagovernmentalentityoranonprofitcorporationcreatedundertheDevelopmentCorporationActof1979. <  $  20         b (j88b 3   3B2j  B  .3  0    CreationofaCountyDevelopmentDistrict3BB݌p(#(# Ќ  b (Eh08b___ ;   ;PD0  2Eh  1  .3  0` (#(#  Eligibility_;PD{D݌P ` (#` (# Ќ    Thecountyinwhichacountydevelopmentdistrictissoughttobecreatedmusthaveapopulationof400,000orless. >  $  21      ׀Adistrictsalestaxcannotbeimposedifthe  p  combinedlocalsalestaxrateinanypartoftheproposeddistrictwouldexceedthetwopercentstatutorycapforlocalsalestax. @  $  22       P    _ ;   ;]G0  2Eh  2  .3  0` (#(#  __Initiation_ԀofProcessbyPetition;]GG݌0 ` (#` (# Ќ    Theprocessforcreationofadistrictmustbeinitiatedbyapetitionfiledwiththecountycommissionerscourtofthecountyinwhichalloftheterritoryintheproposeddistrictislocatedandcreationofthedistrictmustbeconsentedtoallofthelandownersthroughswornstatementswhichmustaccompanythepetition. U  $  23      ׀Thepetitionmust  meetcertainspecificrequirementssetforthinChapter383includingadescriptionoftheboundariesoftheproposeddistrict,thenameofthedistrict,thenamesoffivepersonstoservesatemporaryboardofdirectors,adescriptionofthegeneralnatureofworktobedoneandacurrentestimateofthecostoftheproject,andastatementofthenecessityandfeasibilityoftheproposeddistrictandindicatingwhetherthedistrictwillservethepurposeofattractingvisitorsandtouriststothecounty. Y  $  24       0 _ ;   ;L0  2Eh  3  .3  0` (#(#  __Hearing_ԀonPetition;LL݌`` (#` (# Ќ    Withinsixtydaysofthecountysreceiptofapetitionrequestingcreationofadistrict,thecommissionerscourtmustsetadate,timeandplaceforahearing. Z  $  25      ׀The 0 countymustpublishnoticenolaterthanthirtydaysbeforethehearing,andmustmailnoticetothedeveloperwhosignedthepetitionandallofthelandownersintheproposeddistrict. [  $  26      ׀Atthepublichearing,thecommissionerscourtmustexaminethe "  sufficiencyofthepetition,andmustallowtestimonyfromanyinterestedpersonwhowishestospeakaboutthesufficiencyofthepetitionoraboutwhetherthedistrictshouldbecreated.Inordertograntthepetition,thecommissionerscourtisrequiredtomaketwofindingsaftercompletionofthepublichearing:(1)thatthepetitionmeetsthestatutoryrequirements,and(2)thatthedistrictanditsproposedprojectswouldbefeasible,necessary,andlikelytopromotetourismoreconomicdevelopmentinthecounty. \  $  27      ׀Ifthecommissionerscourtcannotmakethesetwofindings,itmustdenythe @)$' petition. ]  $  28       0*%(    +p&) _ ;   ;S0  2Eh  4  .3  0` (#(#  __Election_ԀtoAdoptaCountyDevelopmentDistrict;SS݌` (#` (# Ќ    Ifthecommissionerscourtmakestherequiredfindings,itmustapprovethepetitionandappointfivetemporarydirectorstotheboardoftheproposeddistrict. 8  $  29      ׀The  temporaryboardmustthemcallanelectiononthecreationofthedistrictandtheadoptionofasalestaxtofunddistrictprojects. ?  $  30      ׀Chapter383containsspecific `  requirementsregardingitemsthatmustbeincludedinanordercallinganelection(includingthepropositiontobevoted,dateofelection,polehoursandlocations,andtheproposedrateofsalestaxforthedistrict)andtherequirementsforpublicationoftheorderinanewspaperofgeneralcirculationinthecountyfortwoconsecutiveweeks,withthefirstnoticebeingpublishedpriortothe14thdaybeforetheelection. A  $  31       `  _ ;   ;Y0  2Eh  5  .3  0` (#(#  __Conducting_ԀanElection;Y-Y݌@ ` (#` (# Ќ    Inconductinganelection,theboardofadistrictmustfollowallapplicablerequirementsforspecialelectionsintheTexasElectioncodeandanyotherstatutesregardingelections. B  $  32      ׀Forexample,theelectionmustbeheldonauniformelection  dateasprovidedbytheElectionCodeandtheboardmaynotexpendpublicfundsorresourcestoinfluencetheresultsoftheelection.  Thetemporaryboardofdirectorsofthedistrictcanvassthevotesandifamajorityofthevoteswerecastinfavorofthedistrict,theboardmustenteranorderapprovingthedistrictandtheadoptionoftheapplicablesalestax,andmustsendacertifiedcopyoftheordertothecommissionerscourt,totheTexasStatecomptroller,andtoanyothertaxingentitywithjurisdictionoverthepropertywithinthedistrict.Ifamajorityofthevotersvoteagainstcreationofthedistrict,theboardmustenteranorderdeclaringthepropositiondefeatedandmustsendacertifiedcopyoftheordertothesameentities. C  $  33      ׀Ifthesalestaxelectionfails,theboardofthedistrictmaycallfor P anotherelectionatanytimeandisnotrequiredtowaitanyspecifiedtimebeforecallinganotherelection._ ;   ;_0  2Eh  6  .3  0` (#(#  __Effective_ԀDateoftheTax;__݌!` (#` (# Ќ    TheadoptedsalestaxbecomeeffectiveontheOctober1staftertheexpirationof #! onefullquarterafternoticeoftheelectionhasbeenprovidedtotheStateComptroller,andthenewtaxappliestopurchasesmadeonoraftertheeffectivedateofthetax._ D  $  34      _ % # _ ;   ;b0  2Eh  7  .3  0` (#(#  __Administration_ԀoftheTax;bb݌`'"%` (#` (# Ќ    TheCountySalesandUseTaxAct(Chapter323oftheTaxCode)governstheimposition,computationandadministrationofthedistrictstax,exceptwhereinconsistentwiththeCountyDevelopmentDistrictAct.TheStateComptrollerremitstheproceedsofthedistrictstaxtothecountytogetherwiththecountysotherlocal ,`'* salestaxproceeds,andthecountymustinturnremitdistrictsalestaxtothedistrictsboard. K  $  35        _ ;   ;f0  2Eh  8  .3  0` (#(#  __Board_ԀofDirectors;f3f݌` (#` (# Ќ    Ifadistrictisapprovedbythevoters,thetemporaryboardofdirectorsautomaticallybecomethedistrictspermanentboardofdirectors. N  $  36      ׀Thedirectorsserve P  staggeredtermsoffouryearsandreplacementstotheboardaremadebyappointmentofthecommissionerscourt. O  $  37      ׀Aboardmembermayberemovedafternoticeand 0  hearingbythecommissionerscourtformisconductorfailuretocarryouthisdutiesuponapetitionofamajorityoftheotherboardofdirectorsforremovaloftheboardmember. E  $  38      ׀Directorsmustbeatleast21yearsofageandresidentsofTexasand P  registeredtovoteinthecountyinwhichthedistrictislocated. F  $  39      ׀Anydirectorwithan @  interestinadistrictcontractmustdisclosetheinteresttotheboard,andmaynotdiscussnorvoteonacceptanceofsuchcontract.Acontractenteredintowithoutsuchdisclosureisinvalid. P  $  40        b (80b 3   3l2  C  .3  0    ModificationorDissolutionofaDistrict3l)m݌(#(# Ќ  b (Eh08b_ ;   ;n0  2Eh  1  .3  0` (#(#  __Expansion_ԀorDecreaseinArea;nn݌` (#` (# Ќ    Priortotheissuanceofanybonds,thecommissionerscourtuponrequestofthedistrictsboardofdirectorsorofaninterestedlandowner,mayapproveaproposedexpansionordecreaseintheareaofadistrict.Thereisnorequirementforanelectionforvoterapprovalofanincreaseordecreaseinthesizeofadistrict,butthecommissionerscourtsapprovalofsuchanincreaseordecreasemustbebyaunanimousvote. Q  $  41       ` _ ;   ;q0  2Eh  2  .3  0` (#(#  __Dissolution_ԀofaDistrict;qr݌@` (#` (# Ќ    Priortotheissuanceofanybonds,ifamajorityofthedistrictsboarddeterminesthattheproposeddistrictprojectcannotbeaccomplished,theboardmayaskthecommissionerscourttodissolvethedistrict.Thedistrictcanbedissolvedbyaunanimousvoteofthecommissionerscourtafternoticeandapublichearingandaunanimousfindingbythecommissionerscourtthatdissolutionofthedistrictisinthebestinterestsofthecountyandthedistrictlandowners.Upondissolution,allfundsandpropertyofthedistrictaretransferredtothecommissionerscourt. R  $  42       p&!$   Afterallissuedbondsanddebtshavebeenpaid,ifamajorityofthedistrictsboarddeterminesthatallissuedbondsanddebtshavebeenpaidandpurposesofthedistrictcompleted,theboardcanmayaskthecommissionerscourttodissolvethedistrict.Thedistrictcanbedissolvedbyaunanimousvoteofthecommissionerscourtafternoticeandapublichearingandaunanimousfindingbythecommissionerscourt ,`'* thatdissolutionisinthebestinterestsofthecounty.Upondissolution,allfundsandpropertyofthedistrictaretransferredtothecommissionerscourt. S  $  43          Adistrictcanalsobedissolvedbyagreementwithamunicipalityifthedistrictislocatedwhollywithinoriswhollyannexedbythecity.Uponsuchdissolution,thetaxesleviedbythedistrictendandallmoney,property,andotherassetsofthedistrictaretransferredtothecityandthecityassumesallcontracts,debts,bonds,andotherobligationsofthedistrict. T  $  44       @  PROPERTYTAXABATEMENT  Incorporatedcities,counties,schooldistrictsandspecialdistrictsmayenterintotaxabatementagreementstoattractnewbusinessesandtoencouragetheretentionanddevelopmentofexistingbusinesses.ThestatutoryprovisionsregardingtaxabatementaresetforthinChapter312oftheTexasTaxCode.Ataxabatementallowsapropertyownertobeexemptfrompropertytaxonanagreedamountofnewvalueofrealpropertyand/orpersonalproperty,whichcouldotherwisebesubjecttotax.  Acityorcountymusttaketheleadoninitiatingthetaxabatementprocessdependingonthelocationofthepropertyinquestion.Ifthepropertyisinthecitylimits,thecitytakestheleadanddesignatesareinvestmentzonefortaxabatementpurposeswhichisusuallythepropertyoftheapplicant. V  $  45      ׀Iftheareaisinthecitysextraterritorial ` jurisdiction(_ETJ_),thecityorthecountymaytakethelead,butifthepropertyisoutsideofanincorporatedareaand_ETJ_,thecountymusttakethelead. ^  $  46      ׀Ataxingunitdesiring @ toprovidetaxabatementmusttakecertainactionsdescribedinChapter312oftheTexasTaxCode:b (80b 3   32  A  .3  0    AdoptionofTaxAbatementResolution3݌P(#(# Ќ  b (Eh08b  Inordertobeabletoconsidertaxabatementproposals,ataxingunitmustadoptaresolutionindicatingitsintenttoparticipateintaxabatement. _  $  47         b (80b 3   32  B  .3  0    _Adoption_ԀofTaxAbatementGuidelines3݌" (#(# Ќ    Thetaxingunitmustadoptguidelinesandcriteriathattaxabatementproposalsmustmeetinordertobeeligiblefortaxabatement. b  $  48      ׀Theguidelinesandcriteriaare % # effectivefortwoyears,andmustmaketaxabatementavailabletobothnewfacilitiesandexpansionsofexistingfacilities. c  $  49      ׀Onceadopted,theguidelinesandcriteriamay `'"% beamendedorrepealedonlybyathreefourthsvoteofthetaxingunitsgoverningbody. e  $  50      ׀Theguidelinesdonotlimitataxingunitsdiscretionwhethertoenterintoany @)$' particulartaxabatementagreementanddonotcreateanyrighttoreceivetaxabatementforaspecificapplication. f  $  51        +p&)  ,`'* b (88b__ 3   332  C  .3  0    DesignationofaReinvestmentZone33^݌(#(# Ќ    Theleadpartyinthetaxabatementprocess(thecityorthecounty)afternoticeandapublichearingmustdesignateanareaasareinvestmentzone.Onlyonetaxingunitneedstodesignateareinvestmentzone.Incorporatedcitiesmaydesignatereinvestmentzonesonlywithinthecitylimitsorwithinthecitys_ETJ_. X  $  52      ׀Acountymay `  designateareinvestmentzoneonlywithinanareaoutsidethetaxingjurisdictionofanincorporatedcity. g  $  53       @    Atthepublichearing,thetaxingunitthatisdesignatingthereinvestmentzonemustfindthattheimprovementssoughtarefeasibleandwouldbeofbenefittothezoneaftertheexpirationofthetaxabatementagreementandthatthezonemeetsoneoftheapplicablecriteriaforreinvestmentzones. `  $  54      ׀Anyinterestedpersonmayspeakand @  presentevidencefororagainstthedesignationofareinvestmentzoneatthepublichearing. a  $  55      ׀Ifazoneisapproved,thedesignationlastsforfiveyearsandmaybe   renewedforsuccessiveperiodsofuptofiveyears. n  $  56          Areinvestmentzoneisnotrequiredtotakeanyparticularshapeorsize,butoncedesignated,maynotbemodified. o  $  57      ׀Ifazoneincludesseveralproperties,the  taxingunitisnotobligatedtograntataxabatementtoeachpropertyowner,however,ifanabatementisprovided,itmustbeforthesamenumberofyearsandpercentageofabatementastheotheragreementswithinthatzone. q  $  58      ׀Manytaxingunitsmakethe ` boundariesofthezonecontiguouswiththepropertyforwhichtaxabatementissoughtsothatthetaxingunitisnotobligatedtousethesametermsfortaxabatementsonpropertylocatedoutsideofthezone.b (j88b__ 3   32j  D  .3  0    TaxAbatementAgreements3݌`(#(# Ќ    Ataxabatementagreementmaybeforaperiodnottoexceed10yearsandmayexemptfromtaxationallorpartoftheincreaseinvalueoftherealpropertyforeachyearoftheagreement. r  $  59      ׀Theagreementmustbeconditionedonthepropertyowner   makingcertainimprovementstothepropertyandonlytheincreaseinthevalueofthepropertyfromitstaxablevalueonJanuary1oftheyearthetaxabatementisexecutedmaybeexempted. u  $  60      ׀Thetaxabatementagreementmayalsoexemptfromtaxationall #! orpartofthevalueoftangiblepersonalpropertyotherthaninventoryandsuppliesthatisbroughtontotherealpropertyaftertheexecutionofthetaxabatementagreement. v  $  61       % #   Propertyownedorleasedbyamemberofacitysgoverningbodyorofacityzoningorplanningboardorcommissionisnoteligiblefortaxabatementbyacity,andpropertyownedorleasedbyamemberofthecommissionerscourtisnoteligiblefortaxabatementbyacounty. p  $  62       0*%(    +p&)   TheTaxCodesetsoutcertainmandatoryprovisionsthatmustbeincludedintax abatementagreements: w  $  63        b ( 98b 3     32   1  .3  0 `   Alistofthekind,numberandlocationofproposedimprovementstothe  property;3݌ ` (#` (# Ќ     3     32   2  .3  0 `   Theagreementmustprovideforaccessandauthorizeinspectionofthe P  propertybythetaxingunitforpurposesofverifyingcompliancewiththeagreement;3%݌ ` (#` (# Ќ   3     3h2   3  .3  0 `   Provideforlimitationsontheuseofthepropertyconsistentwiththetaxing `  unitsdevelopmentgoals;3h݌ ` (#` (# Ќ     3     32   4  .3  0 `   Provideforrecaptureofabatedpropertytaxrevenuesiftheownerfailsto 0  maketheimprovementsrequiredundertheagreement;3݌ ` (#` (# Ќ     3     3)2   5  .3  0 `   Theagreementmustincludeeachtermagreeduponwiththeproperty  ownerandmustrequiretheownertoannuallycertifytoeachtaxingunitcompliancewiththetermsoftheagreement;and3)`݌ ` (#` (# Ќ     3     3Т2   6  .3  0 `   Mustallowthetaxingunittocancelormodifytheagreementatanytimeif p thepropertyownerfailstocomplywiththetermsoftheagreement.3Т݌ ` (#` (# Ќ    TheTaxCodealsosetsforthalistofoptionalprovisionsthatmaybeincludedinataxabatementagreement. s  $  64       0 b (z89b 3   32z  E  .3  0    AdoptionofaTaxAbatementAgreement3ɥ݌`(#(# Ќ    Atleastsevendaysbeforegrantingataxabatement,theleadtaxingunitmustdeliverwrittennoticeofitsintenttoenterintoataxabatementagreementtothepresidingofficerofeachofthetaxingunitsinwhichthesubjectpropertyforwhichtaxabatementissoughtislocated,togetherwithacopyoftheproposedtaxabatementagreement. x  $  65       "    Approvalofataxabatementagreementmustbemadebymajorityvoteataregularlyscheduledmeetingofthetaxingunit. y  $  66      ׀Toapprovethetaxabatement % # agreement,thetaxingunitmustmakeafindingthatthetermsoftheagreementandthepropertyinvolvedmeetthetaxingunitstaxabatementguidelinesandcriteria. z  $  67       `'"%  3   3j2z  F  .3  0    TaxAbatementbyotherTaxingUnits3j݌@)$'(#(# Ќ    Ifacityoracountyastheleadtaxingunitentersintoataxabatementagreement,theothertaxingunitshave90dayswithinwhichtoeithergrantatax ,`'* abatementorchoosenottoparticipateinthetaxabatement. {  $  68      ׀Inthepast,oncethe  leadentityenteredintoataxabatementagreement,theothertaxingunitswhodecidedtoparticipatewererequiredtoadoptanagreementwithprovisionsidenticaltothoseoftheleadentitywithrespecttothetermofyearsoftheabatementandthepercentageoftheabatement.AsofSeptember1,1999,this lockstepapproachislongerrequiredandtheothertaxingunitsareallowedtoadopttaxabatementagreementswithtermsthatdifferfromthoseoftheleadentity. |  $  69       P    Ifpropertyislocatedwithinthe_ETJ_Ԁofacity,anytaxingunitmayinitiateataxabatementagreementoncethecityorthecountyhasdesignatedareinvestmentzone. }  $  70      ׀Ifthecitydesignatesthereinvestmentzonebutdoesnotenterintoatax `  abatementagreement,theothertaxingunitsmayinitiateataxabatementagreementandthetermsofsuchagreementneednotbethesameasamunicipalagreement. ~  $  71       @  However,ifthereisanexistingtaxabatementagreementofanothertaxingunit(otherthanthecity),thetermsofthesubsequentagreementmustbethesamewithrespecttothepercentageofpropertytobeexemptineachyearthattheexistingagreementremainsineffect.   $  72         3   3 2z  G  .3  0    DisincentivesforSchoolDistrictTaxAbatement3 8݌(#(# Ќ    In1993thelegislatureadoptedchangesinschoolfinancelawthatprohibitedthevalueofabatedpropertytobesubtractedfromaschooldistrictstotalpropertyvalue.Becausestatefundingforschooldistrictsisbasedinpartonthevalueoftaxablepropertywiththedistrict,usingahighertotalpropertyvaluefortheschooldistrictmayreducetheamountofschoolfundingthatthedistrictmayreceivefromthestate.Thesechangeshavereducedtheparticipationofschooldistrictsintaxabatement. 3   32z  H  .3  0    SpecialTaxAbatementsforVoluntaryCleanup3B݌P(#(# Ќ    Anewtypeoftaxabatementwasaddedtothestatutein1997whichaddressesrealpropertyinareinvestmentzonewhichissubjecttoacleanupagreementundertheTexasHealthandSafetyCode,andwhosevaluehasbeenreducedfortwoappraisalperiodsbythereleaseofhazardoussubstance.   $  73      ׀Thisprovisionallowsabatementin "  excessoftheincreaseinvalueafteranabatementagreementisexecutedandislimitedtofouryears.Thestatuteprovidesforthepercentageofvaluethatmaybeexemptedeachyearofanagreement.Apropertyownermustreceiveacertificateofcompletionofthecleanupinordertoqualifyforthistypeofabatement.Alltaxingentitiesmayenterintothistypeofabatementwiththeexceptionofschooldistricts.TAXINCREMENTFINANCING  Acitymaycreateareinvestmentzonewithinitscitylimitstousetaxincrementfinancingtoredeveloporbringnewdevelopmentintothezone.Taxincrement ,`'* financingisbasedonnewvaluebeingaddedtopropertywithinthezone.Thecostofimprovementsinthezoneisrepaidbythecontributionoffuturetaxrevenuesbytaxingunitsthatchoosetocontributepartorallofthetaxrevenuethatisattributabletotheincreaseinpropertyvaluesresultingfromtheimprovementswithinthereinvestmentzone.ThestatutoryprovisionsrelatingtotaxincrementfinancingcanbefoundatChapter311oftheTexasTaxCode.b (88b 3   32  A  .3  0    CreatingaTaxIncrementFinancingReinvestmentZone3ý݌@ (#(# Ќ      Taxincrementfinancingmaybeinitiatedbypetitionoftheownersofpropertythatconstitutesatleast50percentofthepropertyvaluewithintheproposedzoneorbythecitycouncilbyordinancewithouttheneedforapetition.   $  74      ׀Numerousspecialrules P  setforthinChapter311oftheTaxCodeapplytoreinvestmentzonesthatarecreatedbypetition.  Ifnotinitiatedbypetition,anareamaybeeligiblefortaxincrementfinancingonlyifitmeetsatleastoneofthreecriteria:   $  75        b (h88b 3     32h  1  .3  0 `   Theareasconditionmustsubstantiallyimpairthecitysgrowth,retardthe  provisionofhousing,orconstituteaneconomicorsocialliabilitytothepublichealth,safety,morals,orwelfareduetosubstandardordeterioratingstructures,inadequatesidewalkorstreetlayout,faultylotlayouts,unsanitaryorunsafeconditions,ataxorspecialassessmentdelinquencythatexceedsthefairmarketvalueoftheland,defectiveorunusualtitleconditions,orconditionsthatendangerlifeorpropertybyfireorothercauses;3 ݌ ` (#` (# Ќ   3     32h  2  .3  0 `   Theareaispredominantlyopen,andsubstantiallyimpairsthegrowthof P thecitybecauseofobsoleteplatting,deterioratingstructures,orotherfactors;or3݌ ` (#` (# Ќ   3     3]2h  3  .3  0 `   Theareaisinoradjacenttoafederallyassistednewcommunityas ! definedinTaxCodeSection311.005(b).3]݌ ` (#` (# Ќ    Additionalrestrictionsonthecreationofataxincrementfinancingreinvestmentzoneinclude:   $  76       % # b (h88b 3     32h  1  .3  0 `   Propertyusedforresidentialpurposesmaynotcomprisemorethan10 `'"% percentoftheproperty,exclusiveofpublicproperty,withinthereinvestmentzone[thisrequirementdoesnotapplytoazonecreatedpursuanttoapetitionoflandowners];30݌ ` (#` (#     +p&)  3     32h  2  .3  0 `   Thepropertyinareinvestmentzonemaynotcomprisemorethan15   percentofthetotalappraisedpropertyvaluewithinthecityandindustrialdistrictscreatedbythecity;and3!݌ ` (#` (# Ќ   3     32h  3  .3  0 `   Azonemaynotcontainmorethan15percentofthetotalappraisedvalue p ofrealpropertytaxablebyacountyorschooldistrict.3݌ ` (#` (# Ќ  b (88b 3   3g2  B  .3  0    ProceduresforAdoptingTaxIncrementFinancing3g݌@ (#(# Ќ  b (#:8b 3     32#  1  .3  0 `   Ifanareaqualifiesfortaxincrementfinancing,thecitymustpreparea  p  preliminaryfinancingplanandsendacopyoftheplantoeachtaxingunitthatleviesataxonrealpropertywithinthezone.   $  77      3݌P ` (#` (# Ќ   3     32#  2  .3  0 `   Thecitymustprovide60dayswrittennoticetoeachsuchtaxingunitofits 0  intentiontodesignateareinvestmentzoneandofahearingontheproposedzone.   $  78      ׀Thenoticemustincludeadescriptionoftheboundaries  oftheproposedzone,thetentativeplanforthezonesdevelopment,andanestimateofthezonesimpactonpropertyvaluesandtaxrevenues.   $  79      ׀  Ataxingunitreceivingthenoticemayrequestthatthecityprovideadditionalinformation.   $  80      3݌` (#` (# Ќ   3     32#  3  .3  0 `   Theaffectedtaxingunitsmustwithin15daysofthecitysnotice, ` designatearepresentativeforthepurposeofmeetingwiththecitytodiscusstheprojectplans.   $  81      ׀Thecitymaycallameetingormeetingsofthe @ taxingunitrepresentativesaftertheexpirationof15daysafterthecitysnoticeforthepurposeofdiscussingtheboundariesofthezone,developmentinthezone,thetaxincrementthateachtaxingunitwillcontributetothetaxincrementfund,theretentionbyataxingunitofaportionofitstaxincrement,theexclusionofparticularparcelsofpropertyfromthezone,theboardofdirectorsforthezone,taxcollectionwithinthezone,andonthecitysmotion,anyothermatterrelevanttotheproposedreinvestmentzone.3݌ ` (#` (# Ќ   3     32#  4  .3  0 `   Inadditiontoits60daynoticeandmeetingswiththeothertaxingunit #! representatives,acitymustalsoprovideaformalpresentationtothegoverningbodyofeachcountyandschooldistrictthatleviesrealpropertytaxeswithintheproposedzone.   $  82      ׀Thepresentationmustincludea p&!$ descriptionoftheproposedboundariesofthezone,thetentativeplansfordevelopmentofthezone,andanestimateofthegeneralimpactofthezoneonpropertyvaluesandtaxrevenues.Noticeofeachpresentationmustbegiventoeachtaxingunitthattaxespropertywithinthezone.Ajointpresentationmaybemadetomultipletaxingunitsifthetaxingunitsinvolvedconsenttoajointpresentation.3݌,`'*` (#` (# Ќ  __ 3     32#  5  .3  0 `   Aftermakingitsformalpresentationstothetaxingunitsaffected,thecity  mustholdapublichearingonthecreationofareinvestmentzoneanditsbenefitstothecityandthepropertyintheproposedzone.   $  83      ׀Any  interestedpersonmayspeakatthehearingfororagainstthecreationofthezone,theboundariesortheconceptoftaxincrementfinancing.Thehearingmustbeprecededbyatleastsevendayspublishednoticeinanewspaperofgeneralcirculationinthecity.37݌ ` (#` (# Ќ   3     3$2#  6  .3  0 `   Afterthepublichearing,thecitymaybyordinancedesignateacontiguous 0  areawithinthecityasareinvestmentzonefortaxincrementfinancingifitdeterminesthatdevelopmentorredevelopmentwouldnotoccursolelythroughprivateinvestmentinthereasonablyforeseeablefuture.   $  84      ׀In P  addition,theordinancemustincludetheitemsrequiredtobeincludedpursuanttoSection311.004:3$[݌ ` (#` (# Ќ  b (d0:b_    }0  0` (#(#2d  a  .3  0 ` (#` (#  __A_Ԁdescriptionoftheboundariesofthezonewithsufficientdetailto  identifytheterritorywithinthezone;}݌  (# (# Ќ   3      ` 32d  b  .3  0   Adesignationoftheboardofdirectorsandthenumberofdirectors  oftheboard;3Y݌  (# (# Ќ   3      ` 3R2d  c  .3  0   Aprovisionthatthezonewilltakeeffectimmediatelyonpassageof  theordinance;3R݌  (# (# Ќ   3      ` 32d  d  .3  0   Provideadateforterminationofthezone;3݌` (# (# Ќ   3      ` 32d  e  .3  0   AssignanametothezoneasprovidedunderSection311.004(5);3݌P (# (# Ќ   3      ` 32d  f  .3  0   Establishataxincrementfundforthezone;3݌@ (# (# Ќ   3      ` 32d  g  .3  0   Findingsthattheimprovementswithinthezonewillsignificantly 0 enhancethevalueofthetaxablepropertywithinthezoneandwillbeofgeneralbenefittothecity,andthattheareaofthezonemeetsthecriteriafordesignationofareinvestmentzoneunderSection311.305;and3݌  (# (# Ќ   3      ` 32d  h  .3  0   Ifthezoneisbeingdesignatedpursuanttoapetitionofproperty 0 ownersunderSection311.005(a)(5),specifythatthedesignationismadeunderthatsection.   $  85      3 ݌! (# (# Ќ   ;   ;0  2d  7  .3  0` (#(#  Afteradoptionofanordinancecreatingazone,theboardofdirectorsof #! thezonemustprepareaprojectplanandareinvestmentzonefinancingplanwhichmustbeasconsistentaspossiblewiththepreliminaryplansdevelopedbythecitybeforetheboardwascreated.   $  86      ׀Afterboththe p&!$ projectplanandthereinvestmentzonefinancingplanareapprovedbythezonesboard,theplansmustalsobeapprovedbythecitybyanordinancethatfindsthattheplansarefeasibleandconformtothecitysmasterplan.   $  87      ׀Theprojectplanmaybeamendedbythezonesboard 0*%( subjecttoapprovalbythecitycouncilbyordinance.   $  88      ;݌ +p&)` (#` (# Ќ    ______ ` Theprojectplanmustinclude:   $  89       ,`'* Ї   ` (a)0 amapshowingexistingusesandconditionsofrealpropertyinthe  zoneandproposedimprovementsanduses;  (# (# 0  0` (#(#0 ` (#` (# ` (b) anyproposedchangestozoningordinances,citymasterplan,  buildingcodes,orothercityordinances;  (# (#    ` (c)0 alistofestimatednonprojectcosts;and0  (# (#p (# (#    ` (d)0 astatementofthemethodforrelocatingpersonswhowillbe `  displacedasaresultofimplementationoftheplan.  (# (# 0  0` (#(#Specialprovisionsapplytoordinancesforzonescreatedpursuanttopetitioninacountywithapopulationofmorethan2.1million.   $  90       p ` (#` (#    ` Thereinvestmentzonefinancingplanmustinclude:   ` (a)0 adetailedlistoftheestimatedprojectcostsofthezone,including 0  administrativeexpenses;  (# (#    ` (b)0 alistofthekind,number,andlocationofallproposedpublicworks  orpublicimprovementswithinthezone;  (# (#    ` (c)0 aneconomicfeasibilitystudy; (# (#    ` (d)0 theestimatedamountofbondedindebtednesstobeincurred; (# (#    ` (e)0 thetimingforincurringcostsormonetaryobligations; (# (#    ` (f)0 themethodsoffinancingallestimatedprojectcostsandthe p expectedsourcesofrevenuetofinanceorpayprojectcosts,includingthepercentageoftaxincrementtobederivedfromthepropertytaxesofeachaffectedtaxingunit;  (# (#    ` (g)0 thecurrenttotalappraisedvalueoftaxablerealpropertyinthe 0 zone;  (# (#    ` (h)0 theestimatedcapturedappraisedvalueofthezoneduringeach ` yearofitsexistence;and  (# (#    ` (_i_)0 thedurationofthezone.@ (# (# 0  0` (#(#Thefinancingplanmayprovideforthecitytoissuetaxincrementbondsornotestopayprojectcostsforthereinvestmentzone.Taxincrementbondsmaybeissuedbyordinanceofthecityandarepayablesolelyfromthetaxincrementfundsandmustmaturewithin20yearsofthedateofissue.   $  91      $"` (#` (#  ;   ;0  2d  8  .3  0` (#(#  Afterareinvestmentzonehasbeenapprovedbytheboardofdirectors p&!$ andbythecity,thetaxingunitswithpropertywithinthezonemaycontractwiththecityregardingwhatpercentageoftheirincreasedtaxrevenueswillbepaidintothetaxincrementfund.Thedecisionregardingwhatpercentageofincreasedtaxrevenues,ifany,willbecontributedtothetaxincrementfundisentirelydiscretionarywiththeaffectedtaxingunits.   $  92      ׀A  +p&) taxingunitmayenterintoanagreementtodedicateincreasedtax ,`'* revenuesatanytimebeforeorafterthezoneiscreatedorenlarged.Anyagreementtocontributemustindicatetheportionofthetaxincrementtobepaidintothefundandtheyearsforwhichthetaxincrementwillbecontributed.   $  93      ׀Onlytaxesattributabletorealpropertyareeligiblefor  contributiontothetaxincrementfund.   $  94      ׀Ataxingunitotherthanacity p mayelecttoofferpropertyownersinthezoneanexemptionfromtaxforanyincreaseinpropertyvalueinlieuofdedicatingaportionofthetaxincrementtothetaxincrementfund.Anysuchtaxabatementagreementmustbeapprovedbytheboardofdirectorsofthezoneandthegoverningbodiesofthetaxingunitsthathaveagreedtodedicateanyoftheirtaxincrementstothetaxincrementfund.   $  95      ;0݌` ` (#` (# Ќ  b (80b 3   32  C  .3  0    ProjectCosts3) ݌@ (#(# Ќ    Projectcostsaretheexpendituresandmonetaryobligationsincurredorestimatedtobeincurredbyacityestablishingareinvestmentzoneforpublicworksorpublicimprovementsinthezonethatarelistedintheprojectplan,pluscostsincidentaltosuchexpendituresandobligations.   $  96      ׀Projectcostsinclude:   $  97        b ( 98b 3     3L 2   1  .3  0 `   capitalandfinancingcosts,3L  ݌` (#` (# Ќ   3     3< 2   2  .3  0 `   realpropertyassemblecosts,3< s ݌p` (#` (# Ќ   3     3-2   3  .3  0 `   professionalservicescosts,3-d݌`` (#` (# Ќ   3     32   4  .3  0 `   imputedadministrativecosts(includingreasonablechargesfortimeofcity P employeesspentinimplementationoftheprojectplan),3T݌ ` (#` (# Ќ   3     32   5  .3  0 `   relocationcosts,3݌0` (#` (# Ќ   3     3d2   6  .3  0 `   organizationalcosts(includingenvironmentalimpactstudies,costsof  p publicizingthecreationofthezone,andcostofimplementingtheprojectplan),3d݌ ` (#` (# Ќ   3     32   7  .3  0 `   interestbeforeandduringconstructionandforoneyearaftercompletion @ ofconstruction,3݌ ` (#` (# Ќ   3     32   8  .3  0 `   contributionsmadebythecityfromgeneralrevenueforimplementationof   theprojectplan,and3M݌ ` (#` (# Ќ   3     3U2   9  .3  0 `   paymentsbythecitythatthecityfindsnecessaryorconvenienttothe "  creationofthezoneorimplementationoftheprojectplan.3U݌ ` (#` (# Ќ  b (89b  3   392  D  .3  0    PowersofBoardofDirectors39d݌% #(#(# Ќ    L u(8L___ 3     32u  1  .3  0 `   The_Ԁboardofdirectorsofthereinvestmentzonemustmake `'"% recommendationstothecityregardingtheadministrationoftaxincrementfinancing.   $  98      ׀Thecity,byordinanceorresolution,mayauthorizetheboard @)$' toexerciseanyofthecityspowerswithrespecttotheadministration,management,oroperationofthezoneortheimplementationoftheprojectplan,exceptthatitmaynotauthorizetheboardtoissuebonds, ,`'* imposetaxesorfees,exercisethepowerofeminentdomain,orgivefinalapprovaltotheprojectplan.   $  99      3݌` (#` (# Ќ   3     32u  2  .3  0 `   Theboardandthecitymayeachenterintoagreementsnecessaryor  convenienttoimplementtheprojectplanandreinvestmentzonefinancingplan.Anagreementmayprovidefortheregulationorrestrictionoftheuseoflandbyimposingconditions,restrictions,orcovenantsthatrunwiththeland.   $  100      3݌@ ` (#` (# Ќ   3     32u  3  .3  0 `   Anagreementbetweentheboardandthecitymaydedicateorprovidefor  p  theuseofrevenueinthetaxincrementfundtopayanyprojectcoststhatbenefitthereinvestmentzone,includingprojectscostsrelatingto:3(݌ ` (#` (# Ќ  0   (#(# b (0(b_    =!0  0` (#(#2  a  .3  0 ` (#` (#  __buildings,_Ԁschools,orothereducationalfacilitiesownedbyoron 0  behalfofaschooldistrict,communitycollegedistrict,orotherpoliticalsubdivisionofthe_state=!h!݌  (# (# Ќ      #0  0` (#(#2  b  .3  0 ` (#` (#  ______________railroad_Ԁortransit_facilities#J#݌ (# (# Ќ      ,%0  0` (#(#2  c  .3  0 ` (#` (#  ______affordable_Ԁ_housing,%W%݌ (# (# Ќ      &0  0` (#(#2  d  .3  0 ` (#` (#  ______the_Ԁ_remediation_Ԁofconditionsthatcontaminatepublicorprivate  landor_buildings&&݌  (# (# Ќ      (0  0` (#(#2  e  .3  0 ` (#` (#  ______the_Ԁpreservationofprivateorpublicbuildingfacades,_((݌p (# (# Ќ      A*0  0` (#(#2  f  .3  0 ` (#` (#  ______the_Ԁdemolitionofpublicorprivatebuildings,_orA*l*݌` (# (# Ќ      +0  0` (#(#2  g  .3  0 ` (#` (#  ______certain_Ԁservicesprovidedbyaneighborhoodenterprise P association.   $  101      + ,݌@ (# (# Ќ   ;   ;.0  2  4  .3  0` (#(#  Theboardmayalsoexerciseanyofthepowersgrantedtoacityunder  p TaxCodeSection311.008,exceptthatthecitymustapprovetheacquisitionofanyrealpropertyandmaychosetorestrictanypowergrantedtotheboardunderChapter311oftheTaxCode.   $  102      ;.2.݌@` (#` (# Ќ  b (80b 3   302  E  .3  0    CompliancewithFinancingPlan300݌ (#(# Ќ    Thecitymustprovideanannualreporttothechiefexecutiveofficerofeachtaxingunitthatleviestaxesonrealpropertywithinthezone.ThereportmustincludetheinformationrequiredbySection311.016todemonstratecompliancewiththetaxincrementfinancingplanadoptedbythecity.  Ataxingunitthathasenteredintoanagreementtodedicatetaxrevenueincrementstoataxincrementfundisnotrequiredtomaketaxincrementpaymentsafterthreeyearsfromthecreationofareinvestmentzoneifnoneofthefollowinghasoccurred:bondshavebeenissuedforthezone,thecityhasacquiredpropertyinthezonepursuanttotheplan,orconstructionofimprovementshasbeguninthezone.   $  103        +p&)  ,`'*  3   352  F  .3  0    DedicationofTaxIncrementRevenuesbySchoolDistricts3505݌(#(# Ќ    PriortoSeptember1,1999,schooldistrictswereabletoreducethevalueoftheirtaxablepropertythattheyreportedtothestateforschoolfundingpurposestoreflectanyvaluethatwaslostduetotaxincrementfinancingparticipationbythedistrict.EffectiveSeptember1,1999,however,schooldistrictsarerequiredtocountthenewvaluesinataxincrementzoneinthedistrictstotalpropertyvalueforpurposesofstateschoolfundingcalculations.Thepracticaleffectofthishasbeentomakeitverydifficultforschooldistrictstoparticipateintaxincrementfinancingzonescreatedafterthatdate. 3   382  G  .3  0    TerminationofReinvestmentZone388݌P (#(# Ќ  b ( 98b 3     392   1  .3  0 `   Areinvestmentzoneterminatesontheearlierof:39%:݌0 ` (#` (# Ќ  _______L (9L 3      ` 3;2  a  .3  0   the_Ԁterminationdatedesignatedintheordinancecreatingthezone  orinalaterordinance,or3;<݌  (# (# Ќ   3      ` 3(=2  b  .3  0   whenallprojectcosts,taxincrementbonds,andinterestonthe  bondshavebeenpaidinfull.   $  104      3(=k=݌ (# (# Ќ  _L ((L 3     3E?2  2  .3  0 `   The_Ԁtaxincrementpledgedtothepaymentofbondsandinterestonthe p bondsmaybedischargedantthezoneterminatedifthecitydepositswithatrusteeorescrowagentanamountwhichwilltogetherwiththeinterestontheinvestmentofsuchfundswillbesufficienttopayatmaturityorthedatefixedforredemption,theprinciple,premiumandinterestonallbondsissuedonbehalfofthereinvestmentzoneandanycompensationduethetrusteeorescrowagent.   $  105      _3E?|?݌ `` (#` (# Ќ   3     3B2  3  .3  0 `    3     3B2  3  .3  0 `   __  P  XX6IXX#6I6I#_