Sec. 31-176. - Eligible project costs.

Eligible project costs are defined under V.T.C.A., Tax Code § 311.002 and 311.008, and include:

(1)

Capital costs:

a.

Actual costs of acquisitions and construction of:

1.

Public works and public improvements (e.g., utilities, streets, street lights, water and sewer facilities, pedestrian malls and walkways, parks, flood and drainage facilities, educational facilities, and parking facilities).

2.

New public buildings, structures and fixtures.

b.

Actual costs of acquisition of existing buildings, structures, and fixtures.

c.

Actual costs of acquisition of land and equipment.

d.

Actual costs of clearing and grading of land.

(2)

Financing costs:

a.

Interest paid to "holders of evidences of indebtedness and other obligations used to pay for project costs."

b.

Premiums paid over the principal amount of the obligation because of the redemption of the obligations before maturity.

(3)

Real property assembly costs.

(4)

Professional service costs for public improvements:

a.

Architectural.

b.

Planning.

c.

Engineering.

d.

Legal advice and services.

(5)

Imputed administrative costs, including reasonable charges of the time spent by municipal employees in connection with the implementation of a project plan.

(6)

Relocation costs.

(7)

Organizational costs:

a.

Environmental impact studies or other studies.

b.

Publication and notification costs.

c.

Costs of project plan implementation.

(8)

Interest before and during construction and for one (1) year after completion, whether or not capitalized.

(9)

Cost of operating the reinvestment zone and project facilities.

(Ord. No. 88196, § 1, 7-30-98)

Sec. 31-177. - Financing of project costs.

Although the City of San Antonio is granted authority to issue tax increment bonds or notes to finance eligible project costs under V.T.C.A., Tax Code § 311.015, only those projects or group of projects that satisfy the city, its advisors, and/or underwriters regarding financial feasibility will be considered for bond financing. For all others, the City of San Antonio will generally require applicants or petitioners to arrange and provide other forms of financing for the eligible project costs. Tax increments deposited into the TIF fund may be used to reimburse a developer over time for contributions made to the city for the construction of eligible project costs, as well as interest and other financing costs associated with the contributions, as approved by the reinvestment zone board and city council. In no case shall reimbursements of contributions for public costs extend beyond twenty (20) years.

(Ord. No. 88196, § 1, 7-30-98)

Sec. 31-178. - Risks to developer.

Any contributions made by applicant or other developer in anticipation of reimbursement from tax increments shall not be, nor construed to be, financial obligations of the City of San Antonio, other taxing entities, or applicable reinvestment zone board. Developer shall bear all risks associated with reimbursement, including: incorrect estimates of tax increment, changes in tax rates or tax collections, changes in state law or interpretations thereof, changes in market or economic conditions impacting the project, changes in interest rates or capital markets, default by tenants, unanticipated effects covered under legal doctrine of force majuere, and/or other unanticipated factors.

(Ord. No. 88196, § 1, 7-30-98)

Sec. 31-179. - TIF bonds.

In certain instances and commensurate with the value of the project will the City of San Antonio consider the issuance of tax increment bonds. In such cases, risk of default and length of term should be reduced to the greatest extent feasible. Safety factors could be included to minimize risk exposure, possibly including a reserve fund, special covenants, and/or special structuring of the debt repayment schedule. Chapter 311 of the Tax Code limits the term of any TIF bonds to twenty (20) years.

(Ord. No. 88196, § 1, 7-30-98)

Sec. 31-180. - Construction of public improvements.

Eligible project costs financed through TIF proceeds shall be publicly bid and caused to be constructed by the City of San Antonio, unless: (1) tax increments go toward financing thirty (30) percent or less of the cost for a specific public improvement; and (2) such public improvement is not a building of any sort. Under such a scenario, the private developer could request to construct the public improvement. This provision is intended to reflect V.T.C.A., Local Government Code §§ 212.071 and 212.072 and similar provisions.

(Ord. No. 88196, § 1, 7-30-98)

Sec. 31-181. - Term of reinvestment zone.

It is the intent of the City of San Antonio to minimize the terms of any reinvestment zone in order to capture the incremental increase in taxable property value for the general benefit of the citizenry as soon as feasible. As prescribed under V.T.C.A., Tax Code § 311.017, reinvestment zones shall terminate on the earlier of:

(1)

Termination date designated in the ordinance(s) creating and/or amending the zone; or

(2)

The date on which all project costs, tax increment bonds, and interest on bonds have been paid in full.

(Ord. No. 88196, § 1, 7-30-98)

Sec. 31-182. - Calculation of tax increment.

The amount of a taxing unit's tax increment for a year is the amount of property taxes levied by the unit for that year on the "captured" appraised value of real property taxable by the unit and located in the reinvestment zone. Captured appraised value is the total appraised value of taxable real property for that year less the total appraised value of taxable real property in the base year (year in which zone was designated by ordinance).

(Ord. No. 88196, § 1, 7-30-98)

Sec. 31-183. - Option to negotiate tax increment.

The City of San Antonio and other local taxing entities reserve the option to jointly or independently negotiate the percent of tax increment deposited in the TIF Fund for any reinvestment zone.

(Ord. No. 88196, § 1, 7-30-98)

Sec. 31-184. - Administration and operations costs.

Following the designation of a reinvestment zone, a reinvestment zone financing plan must be developed and approved by the reinvestment zone board and the city council. As part of that financing plan, reasonable annual administration and operation expenses incurred or anticipated to be incurred by the City of San Antonio or its consultants may be included as project costs for reimbursement from tax increments.

(Ord. No. 88196, § 1, 7-30-98)

Secs. 31-185—31-199. - Reserved.