SUBJECT: Ordinance approving a Fourth Amended Project Plan and Reinvestment Zone Financing Plan for Reinvestment Zone Number Eight, City of Houston, Texas (Gulfgate Zone)
RECOMMENDATION: (Summary)
That City Council adopt an ordinance approving the Fourth Amended Project Plan and Reinvestment Zone Financing Plan for Reinvestment Zone Number Eight, City of Houston, Texas (Gulfgate Zone).
SPECIFIC EXPLANATION:
Reinvestment Zone Number Eight, City of Houston, Texas (“Zone”) was created by City Council (“City”) by Ordinance No 1997-1524 on December 10, 1997. The City approved a Project Plan and Reinvestment Zone Financing Plan (“Plan”) for the Zone by Ordinance No. 1997-1572 on December 17, 1997. To assist in the implementation of the Plan, on December 10, 1997, the City Council created the Gulfgate Redevelopment Authority (“Authority”) by Resolution No. 1997-0066. Subsequently, the City approved the First Amendment to the Plan by Ordinance No. 1997-0707 on July 7, 1999; the Second Amendment to the Plan by Ordinance No. 1999-0824 on August 11, 1999; and the Third Amendment to the Plan by Ordinance No. 2014-1193 on December 17, 2014. On December 5, 2018, the Board of Directors of the Zone is expected to approve a proposed Fourth Amendment to the Plan (“Amended Plan”) and transmit it for City Council consideration and approval.
The Amended Plan would increase the geographic area of the Zone by adding approximately 13 acres of land to the Zone boundaries, and will be coordinated with a proposed annexation into the Zone. The 13 acres proposed to be added to the Zone includes a 3.6-acre affordable housing development owned by Houston Housing Authority located at 6000 Telephone Road, in order to assist in obtaining funds from the 9% Low-Income Housing Tax Credit Program administered by the Texas Department of Housing and Community Affairs, as sites located within a reinvestment zone are favored in obtaining funds from such tax credit program. In addition, the proposed annexation would add approximately 4.4 acres of right-of-way along Telephone Road, from 6000 Telephone Road to the intersection of Reveille Street and Telephone Road, and 5.55 acres of right-of-way along Park Place, from Hartford Street to Galveston Road (Hwy 3).
Pursuant to Ordinance No. 2014-1193, passed and adopted on December 17, 2014, City Council approved the Third Amendment to the Plan for the Zone (the “Third Amended Plan”). The Third Amended Plan contemplated extending the life of the Zone to December 31, 2044 to allow the Zone to reconstruct deteriorating infrastructure, encourage redevelopment in blighted neighborhoods, and improve green space and recreational amenities for area residents. Notice of the public hearing was published on November 26, 2014 and the public hearing was held on December 3, 2014, as required by Sections 311.007(c) and 311.011(e) of the Texas Tax Code. However, due to a transcription error, Ordinance No. 2014-1193 did not include language formally extending the life of the Zone. The Fourth Amended Plan simply restates the termination date of the Zone as December 31, 2044, as originally contemplated in the Third Amended Plan, and does not contemplate an additional life extension.
The Administration recommends that City Council approve the Fourth Amended Plan for the Zone.
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Andrew F. Icken, Chief Development Officer