Del Valle ISD No. 1496, Colorado River Project, LLC

 

On Thursday, June 25 at 6:30 p.m., the Del Valle ISD Board of Trustees held a public hearing for an Application of Colorado River Project, LLC for Appraised Value Limitation on Qualified Property, pursuant to Chapter 313 of the Texas Tax Code and the potential creation of a Reinvestment Zone for such purposes. The application can be accessed here.

At the July 9th Board Meeting, the following three items were considered and approved by the School Board.

Reinvestment Zone authorized by Texas Tax Code Section 312.0025 for purposes related to the Application of Colorado River Project, LLC for Appraised Value Limitation on Qualified Property

The Board of Trustees approved adopting a Resolution creating a Reinvestment Zone authorized by Texas Tax Code Section 312.0025 for purposes related to the Application of Colorado River Project, LLC for Appraised Value Limitation on Qualified Property.

The Texas Economic Development Act, contained in Chapter 313 of the Texas Tax Code, allows Texas school districts to grant certain property tax incentives designed to attract large scale capital investment projects within the school district’s taxing jurisdiction. Under this law, a school district may consider an application, and if specific various legal requirements are met, enter into an agreement for a limitation on the appraised value of the applicant’s property. The limitation applies to the appraised value for only the M&O portion of the District’s property tax rate, for a period of 10 years.

Colorado River Project, LLC has submitted an application for a limitation, and the application has been reviewed by both the Texas Comptroller’s office and TEA. The Comptroller has determined that that the project proposed by the applicant is reasonably likely to generate tax revenue in an amount sufficient to  offset  the  District’s  M&O  tax  revenue  lost  as  a  result  of  the  agreement. The  agreement  with  the applicant will require the applicant to protect the District from any loss of state aid resulting from the limitation  (called  “revenue  protection  payments”),  and  will  also  require  the  applicant  to  make “supplemental payments” to the District. TEA  has  determined  that  the  proposed  project  will  not significantly impact existing District facilities.

Texas law and Del Valle ISD policy require the Board of Trustees to take certain actions before approving the application and entering into a limitation agreement with Colorado River Project, LLC. First,  the Board must conduct a public hearing on the application. Additionally, since an eligible project must be located within a designated reinvestment zone, Texas law permits the Board to designate a reinvestment zone within its boundaries in order to accommodate a project proposed for a Chapter 313 agreement. On June 25, 2020, the Board of Trustees conducted a public hearing in connection  with both the pending application and the creation of a reinvestment zone.

As final steps, the Board must make action to create the reinvestment zone, adopt certain findings of fact in  support  of  the  proposed  project  and  agreement,  and take  formal  action  to  approve  the  Chapter  313 Agreement. This agenda item is in furtherance of these final steps required in the Chapter 313 process.

Board Resolution – Reinvestment Zone-3.pdf

Findings of Fact on the Application of Colorado River Project, LLC for Appraised Value of Limitation on Qualified Property, pursuant to Chapter 313 of the Texas Property Tax Code

The Board of Trustees approved adopting Findings of Fact on the Application of Colorado River Project, LLC for Appraised Value Limitation on Qualified Property, pursuant to Chapter 313 of the Texas Property Tax Code, as presented.

The Texas Economic Development Act, contained in Chapter 313 of the Texas Tax Code, allows Texas school districts to grant certain property tax incentives designed to attract large scale capital investment projects within the school district’s taxing jurisdiction. Under this law, a school district may consider an application, and if specific various legal requirements are met, enter into an agreement for a limitation on the appraised value of the applicant’s property. The limitation applies to the appraised value for only the M&O portion of the District’s property tax rate, for a period of 10 years.

Colorado River Project, LLC has submitted an application for a limitation, and the application has been reviewed by both the Texas Comptroller’s office and TEA. The Comptroller has determined that that the project proposed by the applicant is reasonably likely to generate tax revenue in an amount sufficient to offset the  District’s  M&O  tax revenue lost as a  result of the agreement. The agreement with the applicant will require the applicant to protect the District from any loss of state aid resulting from the limitation  (called  “revenue protection payments”),  and will also require the applicant to make “supplemental payments” to the District. TEA  has determined that the proposed project will not significantly impact existing District facilities.

Texas law and Del Valle ISD policy require the Board of Trustees to take certain actions before approving the application and entering into a limitation agreement with Colorado River Project, LLC. First, the Board must conduct a public hearing on the application. Additionally, since an eligible project must be located within a designated reinvestment zone, Texas law permits the Board to designate a reinvestment zone within its boundaries in order to accommodate a project proposed for a Chapter 313 agreement. On June 25, 2020, the Board of Trustees conducted a public hearing in connection with both the pending application and the creation of a reinvestment zone.

As final steps, the Board must take action to create the reinvestment zone, adopt certain findings of fact in support of the proposed project and agreement,  and take formal action to approve the  Chapter  313 agreement. This agenda item is in furtherance of these final steps required in the Chapter 313 process.

 Chapter 313 Board Findings Final.docx

DEL VALLE ISD #1496 Colorado River Project LLC Finance Report 6-27-2020 Final[1].pdf

Agreement for Limitation on Appraised Value of Property for School District Maintenance and Operation Texas, pursuant to Chapter 313 of the Texas Tax Code, with Colorado River Project, LLC

The Board of Trustees approved the Agreement for Limitation on Appraised Value of Property for School District Maintenance and Operations Taxes, pursuant to Chapter 313 of the Texas Tax Code, with Colorado River Project, LLC.

The Texas Economic Development Act, contained in Chapter 313 of the Texas Tax Code, allows Texas school districts to grant certain property tax incentives designed to attract large scale capital investment projects within the school district’s taxing jurisdiction. Under this law, a school district may consider an application, and if specific various legal requirements are met, enter into an agreement for a limitation on the appraised value of the applicant’s property. The limitation applies to the appraised value for only the M&O portion of the District’s property tax rate, for a period of 10 years.

Colorado River Project, LLC has submitted an application for a limitation, and the application has been reviewed by both the Texas Comptroller’s office and TEA. The Comptroller has determined the project proposed by the applicant is reasonably likely to generate tax revenue in an amount sufficient to offset the District’s M&O tax revenue lost as a result of the agreement. The agreement with the applicant will require the applicant to protect the District from any loss of state aid resulting from the limitation (called “revenue protection payments”), and will also require the applicant to make “supplemental payments” to the District. TEA has determined that the proposed project will not significantly impact existing District facilities.

Texas law and Del Valle ISD policy require the Board of Trustees to take certain actions before approving the application and entering into a limitation agreement with Colorado River Project, LLC. First, the Board must conduct a public hearing on the application. Additionally, since an eligible project must be located within a designated reinvestment zone, Texas law permits the Board to designate a reinvestment zone within its boundaries in order to accommodate a project proposed for a Chapter 313 agreement. On June 25, 2020, the Board of Trustees conducted a public hearing in connection with both the pending application and the creation of a reinvestment zone.

As final steps, the Board must make action to create the reinvestment zone, adopt certain findings of fact in support of the proposed project and agreement, and take formal action to approve the Chapter 313 agreement. This agenda item is in furtherance of these final steps required in the Chapter 313 process.

Chapter 313 Agreement Final 7-6-20.docx

Frequently Asked Questions about Limitation of Appraised Value Agreements Under Texas Tax Code Chapter 313

Board Meeting notices, agendas and agenda packets may be viewed at https://v3.boardbook.org/Public/PublicHome.aspx?ak=227910