Item 16: Amendment to Reimbursement Agreement for Tax Increment Reinvestment Zone No. 4

[COSM_Admin]

Consider approval of Resolution 2021-139R, concerning an Amendment to Reimbursement Agreement with Carma Paso Robles, LLC for San Marcos, Texas Tax Increment Reinvestment Zone No. 4 in connection with the Paso Robles Development at Hunter and Centerpoint Roads; authorizing the City Manager to execute the amendment to Reimbursement Agreement on behalf of the City and other related matters, and declaring an effective date.

 

[MDerrick]

". At that time the reimbursement agreement with Carma Paso Robles, a subsidiary of Brookfield Residential, should have also came before Council for approval but was not. In order to complete the direction given to staff back in 2014 it is necessary for the reimbursement agreement to be approve by Council at this time. "

1. I remember this -is the $10K the cost of water analysis by Texas State?
2. Was the increase realized in the contract from 2014 to present, even though CC somehow didn't actually approve it? Were there any economic impacts due to this oversight?


Thanks!

 

[JHughson]

What did we approve in December 2020? I find this:
"Consider approval of Ordinance 2020-86, on the second of two readings, amending the project plan and reinvestment zone financing plan for Tax Increment Reinvestment Zone No. 4 - Kissing Tree, to increase reimbursement to developer by $10,000,000 and add eligible projects costs for water testing over a 5 year period in the amount not to exceed $265,000; authorizing the City Manager, or his designee, to execute such amendments on behalf of the City; including procedural provisions; and declaring an effective date."
So there is ANOTHER document, the Reimbursement Agreement that we need to amend?

 

[COSM_Admin]

Response to CM Derrick:
1. I remember this -is the $10K the cost of water analysis by Texas State? It is $10 Million, not $10k to my recollection-increased from $20 Million to $30 Million and it is for water quality testing. (Assistant City Manager, Stephanie Reyes)

2. Was the increase realized in the contract from 2014 to present, even though CC somehow didn't actually approve it? No, the project plan with the increase was approved in December 2020 and no increase has been realized since then. Were there any economic impacts due to this oversight? No. Developer has been made aware that this final step is needed to move forward. (Marie Kalka, Director of Finance)

Response to Mayor Hughson:
So there is ANOTHER document, the Reimbursement Agreement that we need to amend? Yes, Mayor Hughson is correct. In December 2020 Council approved the project and financing plan. At that time the Reimbursement Agreement should have also been amended but was not. It was an oversight on Finance with all the transition that was taking place. (Marie Kalka, Director of Finance)