Market area pursuant to Ordinance No. 23521, authorized by

COUNCIL CHAMBERA

February 23, 201 1

WHEREAS, the City recognizes the importance of its role in local economicdevelopment initiatives and programs; and

WHEREAS, the City has established Tax Increment Financing Reinvestment ZoneNumber Six, (“Farmers Market TIE District” or “District”) and established a Board ofDirectors for the District to promote development or redevelopment in the FarmersMarket area pursuant to Ordinance No. 23521, authorized by the City Council on May27, 1998, as authorized by the Tax Increment Financing Act, Chapter 311 of the TexasTax Code as amended; and

WHEREAS, on August 25, 1999, the City Council authorized the Project Plan andReinvestment Zone Financing Plan for the Farmers Market TIE District by OrdinanceNo. 24001, as amended; and

WHEREAS, the Tax Increment Financing Act specifies that the governing body of a cityshall submit an annual report on the financial status of the district to the Chief ExecutiveOfficer of each taxing unit that levies taxes on real property in a reinvestment zone, anda copy of the report shall be forwarded to the Attorney General and the StateComptroller; and

WHEREAS, on November 15, 2010, the Farmers Market TIF District Board of Directorspassed a motion accepting the FY 2010 Annual Report for Tax Increment FinancingReinvestment Zone Number Four and recommending approval of same by the CityCouncil.

NOW, THEREFORE,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS:

Section 1. That the FY 2010 Annual Report for Tax Increment Financing ReinvestmentZone Number Six, (Farmers Market TIE District), City of Dallas, Texas, as ofSeptember 30, 2010, a copy of which is attached hereto (Exhibit A), and is herebyaccepted.

Section 2. That the City Manager is hereby authorized to submit the FY 2010 AnnualReport for Tax Increment Financing Reinvestment Zone Number Six to the ChiefExecutive Officer of each taxing jurisdiction that levies taxes on real property in theDistrict; and to the Attorney General of Texas, and to the State Comptroller, as requiredby state law.

COUNCIL CHAMBER4

February 23, 2011

Section 3. That this resolution shall take effect immediately from and after its passagein accordance with the provisions of the Charter of the City of Dallas. and it isaccordingly so resolved.

Distribution: Office of Economic Development — Tenna Kirk, 5CSOffice of Economic Development — Sajid Safdar, 2CNOffice of Economic Development — Vasavi Pilla, 2CNCity Attorney’s Office — Barbara MartinezCity Attorney’s Office — Sarah Hasib

Farmers Market TIF DistrictFY2OIO

Annual Report

City of Dallas

Office of Economic Development1500 ManIla Street, 20N

Dallas, Texas 75201(214) 670-9821

Iti; Iwww daiasecocevoig.October 1, 2009 to September 30, 2010

Exhibit AFarmers Market TIF District

14 \I 1(ib

FY 2010 Annual Report

FarmersReinvestment Zone Number SixMarket Tax Increment Financing District

ExhibitAFarmers Market TIF District FY 2010 NflLi1 Reb?’

Table of Contents

Mission Statement ...,,,...,.,,.,,...,.. .. ..,,.............,..,,......,.... ..“,.,,.,.,,,.,“.“,. 4District Accomplishments 4Farmers Market TIF District Projects 11Farmers Market TIF Current Development Status Map 13Farmers Market TIF Developable Land Map 14Value and Increment Revenue Summary 15Development Goals and Objectives 15Year-End Summary of Meetings 16Pending TIF Items 16Farmers Market TIF District Budget and Spending Status 17Farmers Market TIF M/WBE Participation 18FY2O1I Work Program 19Appendix: Financials 20

Exhibit AFarmers Market TIF District FY 2010 Annual Report

Mission Statement

The mission of the Farmers Market Tax Increment Financing District is to provide asource of funding for public infrastructure improvements to promote the redevelopment,stabilization and growth of the Farmers Market TIF District area. An accompanying goalis the stabilization and growth of the value of the area’s tax base and support of theDallas Farmers Market.

The Dallas City Council established the Farmers Market TIF District by OrdinanceNumber 23521 on May 27, 1998. The Farmers Market TIF District took effect onOctober 1, 1998, and is scheduled to terminate on September 30, 2013 (includingcollection of the 2013 increment on calendar year 2014 and any related matters to beconcluded in 2014). The City of Dallas is the only participating jurisdiction; the City’sparticipation rate is 100%.

Farmers Market TIF District Accomplishments

The Farmers Market TIF District was created to facilitate the redevelopment ofpreviously vacant and underutilized land adjacent to the Dallas Farmers Market. Withmore new residential development planned, the area is maturing as a major contributorto the revitalization and growth of the downtown area.

Phase 1A of The Park at Farmers Market features 620 apartment units and aclubhouse. Public improvements in Phase 1A include the extension of ManIla Street intothe project, construction of Farmers Market Way, streetscape improvements and streetlighting. Construction of Phase 1B, with 284 apartment units, is completed on the siteimmediately south of Phase 1A.

Phase II, a 17-unit townhouse development at the northeast corner of Canton Streetand South Cesar Chavez Boulevard, were completed during the summer of 2000.Public improvements for Phase II include streetscape improvements, street lighting,wastewater and water improvements.

Camden Phase 1A apartments

4


Farmers Market/Deep Ellum Connector Walkway provides connectivity from the Districtto the Deep Ellum entertainment District, it was completed in 2002. Improvements suchas lighting and benches in conjunction with the Bark Park Central project werecompleted and banners were installed in 2004. Recently, Deep Ellum Foundation withthe support of the Farmers Market TIF funds added lighting to the Art Park andcommissioned new art work.

The Harlan Building was completed in 2005. The renovation of the structure provides10,000 square feet of retail/commercial space and 5 residential units. The publicimprovements associated with the project included water and wastewaterimprovements, paving, streetscape, demolition, environmental remediation and façadeimprovements.

The Harlan Building

Perry Homes has constructed forty four, three story townhomes - the Farmers MarketWay Townhomes (Cityview at Farmers Market Townhomes) at the corner of Farmers

Camden Phase II - 17 Town Homes


Market Way and Cesar Chavez Boulevard. The public improvements associated withthe project included streetscape, paving and pedestrian lighting and utility burial onFarmers Market Way Street

2100 Downtown Townhomes by Urban Innovations completed seven townhomes at thecorner of Canton Street and Cesar Chavez Boulevard. Canton Townhomes by InTownHomes LLC., is currently constructing six townhomes; they are scheduled to becompleted by December 2010. Additional townhomes are planned subjected tocontinued market demand.

Total private development in the Farmers Market TIF District is approximately $92.9million.

Camden Phase I B, 585 units completed, 2005

Exhibit AFarmers Market TIE District

Farmers Market/Deep Ellum Connector Walkway

II I Li oc


Camden Phase I A, 620 Units, Completed 2001


IFY 2010 Annual Report

Banners/Streetscape

Lighting and open space improvements

8


Perry Homes — Cityview at Farmers Market

4.5 acre vacant land across Dallas Farmers Market

0

Exhibit AFarmers Market TIE District

2100 Downtown Townhomes by Urban InnovationsPctures taken from Urban nrrovaton website http. wwwurbaninnovat ons b z 2lOQdowntown pfp

• a


Canton Townhomes by Intown Homes

10

Year Status Unitsl SF2 Approx. Value3 TiP Investment4Project Location Complete

Phase 1A, The2210 & 2410

Park at Farmers 2001 Completed 620 apartments $43,551,000 $3456274Canton St

Market Apts

Townhomes2200 Canton 17 Townhomes $5,601,230Project. Phase 2001 Completed $162,225St.IIA

FarmersMarket/DeepEllum Connector 2002 Completed N/A N/A $672,970Walkway

Bark ParkCentralimprovements inFarmers 2004 Completed N/A N/AMarket/DeepEllum Connector

Harlan Building2018 Cadiz

5 unitsRedevelopment 2005 Completed 10,00 SF $1,089,000 $649,900St.Project commercial

Farmers Market 625 S Good2005 Completed 284 apartments

Project Phase iB- Latimer $19,949,000 $742.031Apartments Expy.

1000 5Farmers Market

CesarWay 2007 Completed 44 Townhomes $13977310 $90000ChavezTownh o mes7

B’vd.

Total of projects within TIF using TIF funding

909 Apartments completed61 Townhomes completed

10,000 square feet -commercial use completed$84,167,540 $5,773,400

Projects Within TIF District Utilizing TIF Funding


2l00Downtown2lO4Young 7Townhomes 2008 $4,095,000 $0

Phase 16 St. Townhomes

6InTown Homes . 2140 Young Townhomes 15 Townhomes2011 $4725000 $0LLC St. Under planned

ConstrucUon

Total of projects within TIF NOT using TIF funding

7 Townhomes completed $8,820,000 $5,773,4006 Townhomes under construction

15 Townhomes planned

Total

909 Apartments completed68 Townhomes completed

$92,987,540 $5,773,40010,000 square feet -commercial use completed6 Townhomes under construction

15 Townhomes planned

Projects Within TF District Not Utilizing TIF Funding5

‘All information updated as of September 30. 2010.upon either the TIF application or required minimum stated in the development agreement. May be

updated for completed projects based on actual unit mix and square footageupon 1) market value of comparable projects for anticipated projects, 2.) private investment stated in

the development agreement for projects that are approved or under construction, or 3) City GIS & DCADmarket value for completed projects (unless project has not yet been assessed). Values may not be fullycaptured by the TIF District for redevelopment projects once pre-existing value and/or the demolition ofstructures is netted out

amounts not to be exceeded per the development agreement.TIF Investment for Farmers Market/Deep Elium connector includes the TIF investment for the Bark Park Central

improvements & Lighting near Art Park and Open space improvements ($25, 000).6 Development Agreement with 2100 Downtown Condominium LLC was rescinded.

The reimbursement for the Farmers Market Way Townhomes project is still pendinq ($90,000).

12

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ib25Exhibit AFarmers Market TIF District FY 2010 Annual Report

Value and Increment Revenue Summary

The Farmers Market TIF District’s assessed 2010 tax value was $103,812,469, anincrease of $80,033,463 over the base year value (1998). This property value changerepresents 274.7% increase from the 1998 base value. The 2010 tax value decreased$3,422,212 (-3.2%) over the 2009 tax value. From the inception of the district,approximately 95% of the increment is from new construction and 5% is from thegeneral appreciation. The total 2010 increment revenue collected in 2011 is expected tobe $606,562. The actual construction that occurred in 2010 will be reflected on the 2011tax roll.

Development Goals and Objectives

On August 25, 1999, the City Council passed Ordinance Number 24001, whichapproved the Farmers Market Tax Increment Financing District Project Plan andReinvestment Zone Financing Plan. Among the goals of the Plan are:

Complete a program of infrastructure replacement and enhancement to provide afoundation for development.

Infrastructure improvement is a high priority for the Farmers Market TIFDistrict. Extension of Manila Street, construction of Farmers Market Way,construction of Farmers Market/Deep Ellum Connector Walkway, streetscapeimprovements, light and water/wastewater, lighting the Art Park and OpenSpace Improvements near Deep Ellum Connector, are funded to meet theinfrastructure improvement goal for the District.

• Encourage residential development, including apartments and townhouses.Since the creation of the Farmers Market TIF District, 977 residential units(909 apartments, 68 townhomes) have been completed and 6 townhomes areunder construction and 15 townhomes are planned.

• Provide opportunities for retail uses supporting neighborhood needs.Approximately 1OO00 square feet of commercial space has been developedto date.

• Encourage high standards of environmental excellence throughout the area.Funding for environmental remediation for the Harlan Building and assistancein the development of infrastructure and streetscape for the Bark ParkCentral.

• Encourage the development of design standards for public improvements anddesign guidelines for private development.

Staff monitors every project which receives TIF funding to guarantee highdesign standards with wide sidewalks, landscaping. open spaces andensures consistency throughout the district.

15

I ic’I I ti


Year-End Summary of Meetings

During the period of October 1, 2009, through September 30. 2010, the Farmers MarketTIE Board met once, on December 2, 2009.

The current Board members are Orlando Alameda, DISD appointee (0 of 1 meeting),Hector Elores, DISD appointee (1 of 1 meeting), Barry Annino - City Representative (1of 1 meeting — no longer a TIE Board Member), Alexia Griffin — City Representative (1 of1 meeting), Lily Mak — City Representative (1 of 1 meeting), Ross Sherwood Martin —

City Representative (1 of 1 meeting), Neal Sleeper - City Representative (1 of 1meeting), John Miller - City Representative (1 of 1 meeting), Stewart Clancy (0 of 0meeting — new TIE Board Member), Zane Aveton (0 of 0 meeting — new TIE BoardMember).

During the fiscal year, the City Council approved one item associated with the FarmersMarket TIE District and one item related to the TIE Board Members:

On February 10, 2010, the City Council approved Resolution Number 10-0460 authorizing acceptance of the Fiscal Year 2009 Annual Report of theTax Increment Reinvestment Zone Number Six (Farmers Market TIEDistrict), and authorizing the City Manager to submit the annual report tothe other taxing jurisdictions that participate in the district, as well as theTexas Attorney General.

Pending TIF Items

EY 2010 Annual Report, Farmers Market TIE District

11’) ?iExhibit AFarmers Market TIF District FY 2010 Annual Report

Budget and Spending Status

Each TIF District establishes a budget for the public improvement expendituresnecessary to support private investment in the district in the Project Plan andReinvestment Zone Financing Plan. The Farmers Market TIF District budget andspending to date is shown in the following table:

Farmers Market TIF DistrictProjected Increment Revenues to Retire TIF Fund_Obligations

Phase IA3 $8125411 $8,125,411 $0

Deep Ellum connector4 $1,539,320 $672970 $866,350

Phase lB $2,626,976 $742031 $1884945

Phase ii5 $8,060,679 $3,210,830 $4,849,849

Harlan Building $1,268,655 $701,142 $567,513

TIF Administration0 $1,112,684 $352,426 $760,258

Total $22,733,725 $13,804,810 $8,928,915

1. Budget shown above in current dollars; TIF Project Plan shows the budget in net present value.2. Allocated includes money expended and committed for existing and future projects.3. Phase 1A and Phase II includes $7, 654, 743, funds advanced by the City.4. Deep Ellum Connector includes — Lighting near Art Park and Open Space Improvements (AA)- $250005. Phase II includes Perry Homes-$90, 0006. TIF administration fee include funds expended of committed through FY 2010

Category TIF Buc Allocate Balance

Farmers Market TIF DistrictProject Plan Bu4get

Category TIF Budget*

Phase IA $4,162,445

Deep Ellum Connector $788,555

Phase lB $1,345,734

Phase II $4,129,284

Harlan Building Redevelopment $649,900

Administrative $570,000

Total $11,645,918* As approved in the Project Plan and Reinvestment Zone Financing --

Plan.

17


% MinorityProject Contractor Contract AwardedPaicipation

Manila St. & FarmersTiseo Paving

$1,791,031 1158%Market WayCompanyInfrastructure

Manila St. & FarmersMarket Way Gibson & Assoc.,lnc $1,863,606 942%tscainManIla St. & FarmersMarket Way

Gibson & Assoc., Inc. $120,872 950%Streetscaping — contractincreaseGood Latimer Expwy

Gibson & Assoc., Inc $425,536 23.20%tscainCanton St. &

New Star Grading &$197,045 66.59%S. Cesar Chavez Bive

PavingInfrastructureFarmersMarket Townhomes Saber Development

$138,795 3.10%Phase hA CorporationWater & Waste WaterCamden Farmers MarketPh. 1B, parcel 1

— Gibson & Assoc, Inc $617,702 25,9%Streetscaping,Water & Waste WaterHarlan Building

Nedderman & Assoc. $650,000 17.6%Redevelopment

Total $5,804,587 15.6% ($903,060)

IExhibit AFarmers Market TIF District FY 2010 Annual Report

FY 2011 Work Program

• Developing a Strategic Implementation Plan for the district to prioritize use ofpublic investment within the district.

• Assist with issues related to the Perry Homes’ Farmers Market TownhomesProject, Deep Ellum Foundation for the lighting and open space improvementprojects.

• Assist with issues related to the beautification of the Farmers Market TIF Districtentry way, identifying missing banners,

• Continue facilitating partnership with Farmers Market and other organizations instrengthening the Farmers Market TIF District.

19

T


Appendix: Financials

Farmers Market Tax Increment Financing District

Reinvestment Zone Number Six, City of Dallas, Texas

As of September 30, 2010

Chapter 311 016 of VT CA requires the following information

as part of the annual report on the status of the TIF District

Information is contained in detail on the attached

financial statements

Amount and source of revenue in the tax increment fund established for the zone:

$28652 Interest Income

$0 Other revenue-developer reimbursement savings

$557323 Ad Valorem Taxes (Collected in FY 2009-10 based on 2009 Final Tax Roll)

$585 976 Total Revenue

2. Amount and purpose of expenditures from the fun&

$22047 Administrative ExpenseNon-Capital

$12415 outlay*

$0 Capital outlay

$0 Interest and fiscal charges

$34462

* Expenditure is for street light repairs near Art Park.

3. Amount of Principal and Interest due-on outstanding indebtedness is as follows:

Advance

Source of Funds Proiect Princigal

______ __________

City of Dallas

Camden Realty

Camden RealtyCadiz StreetProperties

_________________________________________________

Less, payments

___________ ________________ ___________

Net Balance Outstanding

Total Expenditures

Accrued

Interest

Total (P & I)

Outstanding

Park at Farmers Market $4,491,169 $3,136,573 $7,627,743

Townhomes Phase hA $335,840 $154,768 $490,608

Townhomes Phase IS $742,031 $244,610 $986 641

Harlan building redevelopment 5649.900 S51.242 5701.142

Total 56.218.940 $3 587.193 S9.806 134

51.727.771 $450620 52.178.391

54.491.169 53.136.573 S7.627.743

20

4. Tax increment base and current captured appraised value retained by the zone:

25

Cty of Dallas

Dallas Independent School District

Dallas County

Dallas County Hospital DistrictDallas County Community CollegeDistrict

Taxable Base Year Est. Captured

Value 2010 1996 Value Value 2010*

S103812469 S27706.851 S76105618

so soso soso so

$0 50 $0

sosoSo

* Based on preliminary Taxable Values Final values will be determined on February 01 2011

5, Captured appraised value by the municipality and other taxing units, the total amount of the tax

increment received, and any additional information necessary to demonstrate compliance with the

tax increment financing plan adopted by the governing body of the municipality:

A Estimated tax increment shared by the municipality and other participating taxing jurisdictions;

City of Dallas

Dallas Independent School District

Dallas County

Dallas County Hospital DistrictDallas County Community CollegeDistrict

Taxing Jurisdiction

Total for allJurisdictions

Assessment 2010 Tax Year

Per $100 Increment

0.79700 $606562

0.00000 $0

0.00000 $0

0.00000 $0

0 00000 $0

50.79700 5606.562

B. The total amount of projected tax increment to be billed for the 2010 tax year is shown above. For the 2009 tax year

TIF received $557 323 in tax increment


TaxingJurisdiction


21


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Farrers Market Tax fcormrent Fetapeng .OFstnct Fund

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Farmera Market Tax n ement Fmanc no CS stool Fund

$tatemnt of Oevenuee ExpendItures and Changes n Fund Balance CSelicO)

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With Conipa See Tote a for September 30 7009. 20011 2007 end 2006

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-9360671 051’C 5143,34 p52 05 032osl

31301511 310445130 46.44o1T 54u6340 11344 7 24 1111

22


City of Dallas, TexasFarmers Market Tax ncrement Financing District

Notes to Financial Statements for the Year Ended September 30 2010(Unaudited)

1 The measurement focus used for the TIF Zone fund is a flow of financial resources The financial statements areprepared using the modified accrual basis of accounting. Under the modified accrual basis of accounting, taxincrement revenues and interest are recognized as revenue when they become both measurable and available tofinance expenditures of the current period Expenditures are recognized when the liability is incurred

2 State statute requires that each taxing jurisdiction remit its ad valorem taxes to the Zone by May 1 of each year(remittance to occur no more than 90 days after taxes for the jurisdiction become delinquent)

3 The Zones cash balances are invested in the City’s investment pool and earn pro rata interest The City invests inU.S Treasury and Agency securities with maturities which are less than five years and money market mutual fundsrated Aaa or AAAm The weighted average maturity of the portfolio is less than 365 days.

4 The Zones Financial Plan permits expenditures not to exceed $1 112 684 (in current $) of the TIF to reimburse theCity for administrative costs. The Zone incurred $22,047 in administrative costs for fiscal year 2009-10 The Citybegan billing the Zone for administrative costs in FY1998-99, Any future remittance for administrative expenseswould come from excess cash as tax increment revenue increases as a result of increased assessed values.

5 The Zone has received advances from City of Dallas to fund improvements that have been made by the Departmentof Public Works and Transportation. The City used the funds from the 1985 bond program that were allocated to fundthese public improvements in the TIF district Funds advanced by the City, which bear interest from the date ofadvance, include the following:

$1791030 advance as of March 11, 1999 bears interest at 5 20% compounded annually’

$1,995,017 advance as of September 25, 2000 bears interest at 5.20% compounded annually:

$478,886 advance as of October 01, 2001 bears interest at 5.20% compounded annually: and

$226,236 advance as of September 25, 2002 bears interest at 5.20% compounded annually; and

7. All expenditures for capital improvements, including accounts payable of $87,720 as of 9/30/05 has been expensed asproject costs as incurred. All project costs resulting in capital improvements which are owned by the City arecapitalized on the City’s books

Documents

Market area pursuant to Ordinance No. 23521, authorized by