The area described in section 48-102 and more commonly referred to as the "Pearsall Development Project" and officially assigned the name as designated in section 48-105 (which reinvestment zone so described, named and designated is hereinafter referred to as the "zone"), is hereby designated as a tax increment reinvestment zone.

(Ord. No. 2011-12-140, § 1, 12-22-2011)

Attached to the ordinance from which this article is derived as Exhibit "A," which is incorporated herein by reference for all purposes, is a county appraisal district map with the parcels, area and boundaries of the zone shaded in yellow.

(Ord. No. 2011-12-140, § 2, 12-22-2011)

(a)

There is hereby created a board of directors (the "board") for the zone, with all the rights, powers and duties as provided by the Act to such boards or by action of the City Council. Pursuant to V.T.C.A., Tax Code § 311.009(a), the board shall consist of not less than five and not more than 15 members. The tax increment reinvestment zone board shall consist of five members; three appointees from the City and two appointees from the County. Each taxing unit other than the City that levies taxes on real property in the zone may appoint one member to the board. A unit may waive its right to appoint a member. Upon expiration of their respective terms of office, replacements to the board shall be appointed. Vacancies on the board shall be filled by the respective taxing unit making such appointments for the remainder of the unexpired term.

(b)

The following members are hereby appointed to the board of directors for Tax Increment Reinvestment Zone Number 1 for a two-year term:

(c)

The City Council reserves any powers of a municipality under V.T.C.A Tax Code, § 311.008 not expressly granted to the Board by ordinance, included but not limited to cause project plans and Reinvestment zone financing to be prepared, approved and implemented to achieve the purposes of the plans; exercising the final approval of any project plan, financing plan and maintaining custody and control of the City of Pearsall Tax Increment Reinvestment Zone funds.

(d)

The City of Pearsall Tax Increment Reinvestment Zone Board of Directors shall operate as provided in V.T.C.A. Tax Code, § 311.010. Powers and Duties of Board of Directors.

(1)

The board of directors of a reinvestment zone shall make recommendations to the governing body of the municipality or county that created the zone concerning the administration of this chapter in the zone. The governing body of the municipality by ordinance or resolution or the county by order or resolution may authorize the board to exercise any of the municipality's or county's powers with respect to the administration, management, or operation of the zone or the implementation of the project plan for the zone, except that the governing body may not authorize the board to:

a.

Issue bonds;

b.

Impose taxes or fees;

c.

Exercise the power of eminent domain; or

d.

Give final approval to the project plan.

(Ord. No. 2011-12-140, § 3, 12-22-2011; Ord. No. 2015-12-02, 12-15-2015; Ord. No. 2023-02-05, § 1, 2-14-2021)

The zone shall take effect on December 13, 2011, and continue until its termination date of December 31, 2036, unless otherwise terminated earlier as a result of payment in full of all project costs, tax increment bonds, if any, including interest on said bonds as authorized or permitted by law.

(Ord. No. 2011-12-140, § 4, 12-22-2011)

The tax increment reinvestment zone created hereby is assigned the name of "Reinvestment Zone Number 1, City of Pearsall, Texas."

(Ord. No. 2011-12-140, § 5, 12-22-2011)

The tax increment base for the zone is the total assessed value of all real property taxable by the City and located in the zone, determined as of January 1, 2011, the year in which the zone was designated as a reinvestment zone (the "tax increment base").

(Ord. No. 2011-12-140, § 6, 12-22-2011)

There is hereby created and established in the depository bank of the City, a fund to be called the "Reinvestment Zone Number 1, City of Pearsall, Texas, Tax Increment Fund" (herein called the "Tax Increment Fund"). Money in the Tax Increment Fund, from whatever source, may be disbursed from the Tax Increment Fund, invested, and paid as permitted by the Act or by any agreements entered into pursuant to the Act, or as otherwise authorized by law.

(Ord. No. 2011-12-140, § 7, 12-22-2011)

(a)

The City hereby finds and declares that:

(1)

Improvements in the zone will significantly enhance the value of all the taxable real property in the zone and will be of general benefit to the City; and

(2)

The zone meets the requirements of section 311.005 of the Act, being that the zone area:

"be predominantly open or undeveloped, and because of obsolete platting, deterioration of structures or site improvements, or other factors, substantially impairs or arrests the sound growth of the municipality…"

(b)

The City, pursuant to the Act, further finds and declares that:

(1)

The proposed zone is a contiguous geographical area located wholly within the City limits or extraterritorial jurisdiction of the City;

(2)

Less than 30 percent of the property in the proposed zone is used for residential purposes, as the term "residential" is defined in section 311.006(d) of the Act;

(3)

The total appraised value of the taxable real property in the proposed zone or in existing reinvestment zones, if any, does not exceed 50 percent of the total appraised value of taxable real property in the City and in industrial districts, if any, created by the City;

(4)

The proposed zone does not contain more than 50 percent of the total appraised value of real property taxable by the County and the Pearsall Independent School District; and

(5)

Development or redevelopment within the boundaries of the proposed zone will not occur solely through private investment in the reasonably foreseeable future.

(Ord. No. 2011-12-140, § 8, 12-22-2011)

The Zone is designated pursuant to section 311.005(a) of the Act.

(Ord. No. 2011-12-140, § 9, 12-22-2011)