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2024 TIRZ No. 2 Annual Report Prosper TIRZ #2 Annual Report 2024 -1- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 (TIRZ #2) ANNUAL REPORT 2024 Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -2- INDEX 1) Cover 2) Index 3) Year End Summary of Meetings/Town Council/Board Actions 4) Public Infrastructure/Building Projects 5) Capital Improvement Plan Budget 6) Annual Financial Report 7) TIRZ Fund Financial Statement 8) Revenue & Expenditures a) TIRZ Rollback Tax Map b) Payment Summaries Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -3- YEAR END SUMMARY OF MEETINGS/TOWN COUNCIL/BOARD ACTIONS In December 2015, the Town of Prosper Town Council appointed members for the Tax Increment Reinvestment Zone #2 (TIRZ #2) Board of Directors. In the latter part of 2015 Matthews Southwest commenced construction on its Prosper West development at the northwest corner of US 380 and Dallas North Tollway with the installation of a large sanitary sewer line from the west, thus marking the first improvements made to the TIRZ #2 site. The first annual TIRZ Board of Directors meeting was held on January 26, 2016. The second annual TIRZ Board of Directors meeting was held on April 11, 2017. The third annual board meeting was held on January 23, 2018. The fourth annual TIRZ Board of Directors meeting was held on January 22, 2019. The fifth annual Board of Directors meeting was held on January 28, 2020. The sixth annual Board of Directors meeting was held on January 26, 2021. The seventh annual TIRZ Board of Directors meeting was held on January 25, 2022. The eighth annual TIRZ Board of Directors meeting was held on January 24, 2023. The ninth annual TIRZ Board of Directors meeting was held on January 23, 2024. This is the tenth year that the board has reviewed the annual report. The original Development and Financing Agreement with Matthews Southwest expired on September 22, 2021. On April 12, 2022, the Town Council approved a Roadway Construction Reimbursement Agreement with MSW Prosper 380 II, LP, for the construction of the following roadways within the boundaries of TIRZ #2: • 4 lanes concrete pavement: Mahard Parkway from Toyota and Texas Health Resources, extending north to the intersection of Prairie Drive. • 4 lanes concrete pavement: Prairie Drive from the intersection of Mahard Parkway, extending east to the intersection of Shawnee Trail. • 4 lanes concrete pavement: Shawnee Trail from the intersection of Prairie Drive, extending north to the future intersection of Lovers Lane. • 4 lanes concrete pavement: Prairie Drive East from the intersection of Shawnee Trail, extending east to the Dallas North Tollway. Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -4- The Town’s Thoroughfare Plan was amended on May 11, 2021, to realign segments of Mahard Parkway, Lovers Lane, Prairie Drive, and Shawnee Trail to square-up the intersections, as depicted on the Amended Thoroughfare Plan exhibit included in this Annual Report. The construction of the roadways also includes installation of underground utilities (water, sanitary sewer and storm drainage), median landscaping and street lighting. The estimated cost for the design and construction of the proposed roadways is approximately $14,399,970. On April 30, 2024, the Town Council approved the First Amendment to the Roadway Construction Reimbursement Agreement with MSW Prosper 380 II, LP, which extended the expiration of the Roadway Construction Reimbursement Agreement from April 12, 2024, to the following: • Beginning April 13, 2024, there are late penalties of $1,000 per day until the project is deemed Substantially Complete. Substantially Complete is the stage of the project where the public has beneficial use of the improvements, which occurred on May 30, 2024, and included 8 days of weather-related delays (47 days – 8 weather days = 39 days). Total of $39,000 late penalty. • Beginning August 31, 2024, there will be late penalties of $1,000 per day until the project receives Final Acceptance. Final Acceptance is the completion of the project, which is anticipated in February 2025. At the time of Final Acceptance, the late penalty for this phase will be calculated and added to the $39,000 late penalty for the Substantially Complete deadline. Per the First Amendment, all late penalties assessed will be deducted from the eligible actual construction costs of the project to be submitted to the next board meeting for reimbursement approval. Board members appointed and currently serving are: Town—Mayor David F. Bristol, Mayor Pro-Tem Marcus E. Ray, Deputy Mayor Pro-Tem Amy Bartley, and Councilmembers Craig Andres, Chris Kern, Jeff Hodges, and Cameron Reeves. Collin County – County Commissioner Susan Fletcher. Prosper Economic Development Corporation – Ray Smith. During this reporting period, the following building received Certificate of Occupancy: Business Name Address Area CO Issued Date Texas Health Resources 1970 W University Drive 2,902 6/8/2024 Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -5- PUBLIC INFRASTRUCTURE / BUILDING PROJECTS Non-project Costs Total TIRZ for Public Improvements Public Improvements STREETS AND DRAINAGE SYSTEMS $11, 146,567 $2,001,748 $13,148,315 STREET ENHANCEMENTS $0 $1,775,577 $1,775,577 WATER SYSTEM $1,367,721 $1,116,778 $2,484,499 SANITARY SEWER SYSTEM $641,669 $358,204 $999,873 OFFSITE SANITARY SEWER SYSTEM $1,479,282 $0 $1,479,282 DETENTION/RETENTION PONDS & MASS EXCAVATION $0 $2,882,560 $2,882,560 SITEWORK FOR DEVELOPMENT PARCELS $0 $15,750,000 $15,750,000 PARKING DECKS $0 $73,497,600 $73,497,600 STREET LIGHTS $174,000 $210,000 $384,000 TRAFFIC SIGNALS (4 budgeted) $1,200,000 $0 $1,200,000 LOVERS LANE LOOP OFFSITE - STREET K6 $1, 174,992 $0 $1,174,992 PRIMARY ELECTRIC SERVICE LOOP $0 $3,600,000 $3,600,000 ELECTRIC $0 $640,150 $640,150 GAS $0 $448, 105 $448,105 STREET N2 - WESTSIDE ONT SERVICE ROAD, LOVERS LN. TO FIRST ST. $1,687,005 $0 $1,687,005 BRAIDED RAMP AT U.S. 380 $4,000,000 $0 $4,000,000 CIVIL ENGINEERING & SURVEYING (10%) $1,887, 124 $10,228,072 $12,115,196 CONSTRUCTION STAKING (2%) $377,425 $2,045,614 $2,423,039 CONSTRUCTION MANAGEMENT (TOTAL = 3%) $477,093 $3,157,466 $3,634,559 GEOTECHNICAL STUDY (1%) $188,712 $1,022,807 $1,211,520 LEGAL (1%) $188,712 $1,022,807 $1,211,520 CONTINGENCY (8%) $1,509,699 $8, 182,458 $9,692,157 Longo Toyota Roadway Impact Fee Credit ($280,779) $0 ($280,779) Subtotal $27,219,221 $127,939,947 $155,159,168 TOWN EXPENSE FOR TIRZ ADMINISTRATION $1,346,836 $0 $1,346,836 Subtotal TIRZ Project Costs Before Finance Expenses $28,566,057 $127,939,947 $156,506,004 Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -6- THOROUGHFARE PLAN Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -7- AMENDED THOROUGHFARE PLAN – 05/11/2021 Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -8- WATER PLAN Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -9- WASTEWATER PLAN Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -10- PUBLIC INFRASTRUCTURE/BUILDING PROJECTS (Per Original TIRZ Agreement) Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -11- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -12- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -13- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -14- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -15- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -16- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -17- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -18- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -19- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -20- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -21- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -22- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -23- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -24- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -25- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -26- CAPITAL IMPROVEMENT PLAN BUDGET REIMBURSEMENTS REIMBURSEMENT NO. 1 FY 2015 $200,749.95 REIMBURSEMENT NO. 2 FY 2016 $1,147,498.19 REIMBURSEMENT NO. 3 FY 2017 $589,347.42 REIMBURSEMENT NO. 4 FY 2018 $44,938.85 * REIMBURSEMENT NO. 4A FY 2018 $252,478.79 ** REIMBURSEMENT NO. 5 FY 2019 $46,511.71 *** REIMBURSEMENT NO. 6 FY 2020 $47,441.06 *** REIMBURSEMENT NO. 7 FINAL $14,889.51 **** REIMBURSEMENT NO. 8 FY 2022 - ***** REIMBURSEMENT NO. 9 FY 2023 - REIMBURSEMENT NO. 10 FY 2024 - TOTAL BILLED TO DATE $2,343,855.48 * Reimbursement No. 4 request submitted to Engineering was denied due to ineligible costs. This is accrued interest. ** Reimbursement No. 4A is payable to Longo Toyota for remaining balance for Mahard Parkway. ***Accrued interest only. ****Accrued interest for final period of 6/1/20 - 09/22/20. *****All interest on original terminated agreement paid in full. Longo and new MSW Prosper 380, LP agreement does not require interest payments on outstanding balances. Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2023 Prosper TIRZ #2 Annual Report 2024 -27- ANNUAL FINANCIAL REPORT Chapter 311.016 of V.C.T.A. requires the following information as part of the annual report on the status of the TIRZ District. Information is contained in detail on the financial statement. 1. Amount and source of revenue in the tax increment fund established for the zone: $ 110,373 Total Revenue 2. Amount and purpose of expenditures from the fund: $ 110,272 Total Expenditures 3. Amount of Principal and Interest due on outstanding indebtedness is as follows: A. Contributions /Advances from developers— $1,222,119.65. B. Bonds issued and payment schedule to retire bonds— none. 4. Tax Increment base and current captured appraised value retained by the zone: A. Tax Increment base and current captured appraised value retained for Tax Year 2023: Taxing Jurisdiction Net Taxable Value Tax Year 2023 Base Year* Value (with AG) Jan. 1, 2014 Captured App. Value Fiscal Year 2023- 2024 Town of Prosper $11,104,312 $29,413 $11,074,899 Collin County $11,104,312 $29,413 $11,074,899 B. Tax Increment base and expected captured appraised value for Tax Year 2024: Taxing Jurisdiction Net Taxable Value Tax Year 2024 Base Year* Value (with AG) Jan. 1, 2014 Captured App. Value Fiscal Year 2024-2025 Town of Prosper $31,004,918 $29,413 $30,975,505 Collin County $31,004,918 $29,413 $30,975,505 * Base Year Value as of January 1, 2014, is for Fiscal Year 2013-2014. 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. Captured appraised value shared by the municipality and other participating taxing jurisdictions received in Fiscal Year 2023-2024: Taxing Jurisdiction Participation Per $100/Value Amount of Fiscal Year 2023-2024 Increment Town of Prosper (70%) $ 0.510000 $ 39,537 Collin County (50%) $ 0.149343 $ 8,270 Total $ 0.659343 $ 47,807 Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -28- ANNUAL FINANCIAL REPORT B. Amount of tax increment received in 2024 from the municipality and the other taxing jurisdictions based on 2023 valuations: $ 47,807 C. Amount of Rollback taxes for tax year 2023: $ 44,560 D. Expected appraised value shared by the municipality and other participating taxing jurisdictions to be received in Fiscal Year 2024-2025: Taxing Jurisdiction Participation Per $100/Value Amount of Fiscal Year 2024-2025 Increment Town of Prosper (70%) $ 0.505000 $ 78,988 Collin County (50%) $ 0.149343 $ 23,130 Total $ 0.654343 $ 102,118 E. Other information: None Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -29- TIRZ FUND FINANCIAL STATEMENT CAPITAL DEBT PROJECTS SERVICE TOTAL Beginning Balance: 10/1/23 $ 25,650 $ - $ 25,650 Revenues: Property Tax: Town $ 39,537 - $ 39,537 Delinquent - - - County 8,270 - 8,270 Property Rollback Taxes 44,560 - 44,560 Sales Tax 14,782 - 14,782 Impact Fees: Water Impact Fees - - - Wastewater Impact Fees - - - Thoroughfare Impact Fees - - - 380 Construction Sales Office - - - Interest 3,224 - 3,224 TOTAL REVENUES $ 110,373 $ - $ 110,373 Expenditures: Land Purchases $ - $ - $ - Professional Services - - - Construction/Improvements: Lower DB Sewer 110,272 - 110,272 Mahard Parkway - - - Interest Expense - - - TOTAL EXPENDITURES $ 110,272 $ - $ 110,272 Ending Balance: 9/30/24 $ 25,751 $ - $ 25,751 Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -30- Town of Prosper, Texas Tax Increment Reinvestment Zone #2 As of September 30, 2024 Prosper TIRZ #2 Annual Report 2024 -31- REVENUES & EXPENDITURES PAYMENT SUMMARIES By Project: By Payment Request: By Payments Made: TIRZ 2 Totals Lower DB Sewer Mahard Parkway Interest Construction Total Totals Amount 1,344,730.05 815,655.62 - - - - - 183,469.81 2,160,385.67 2,343,855.48 Paid 832,861.17 105,404.85 - - - - - 183,469.81 938,266.02 1,121,735.83 Remaining 511,868.88 710,250.77 - - - - - - 1,222,119.65 1,222,119.65 Lower DB Sewer Mahard Parkway Interest Amount 95,345.10 105,404.85 - - - - - - 200,749.95 Reimbursement #1 Totals Paid 95,345.10 105,404.85 - - - - - - 200,749.95 Remaining - - - - - - - - - Amount 1,082,892.73 64,605.46 - - - - - - 1,147,498.19 Reimbursement #2 Totals Paid 737,516.07 - - - - - - - 737,516.07 Remaining 345,376.66 64,605.46 - - - - - - 409,982.12 Amount 166,492.22 393,166.52 - - - - - 29,688.68 589,347.42 Reimbursement #3 Totals Paid - - - - - - - 29,688.68 29,688.68 Remaining 166,492.22 393,166.52 - - - - - - 559,658.74 Amount - - - - - - - 44,938.85 44,938.85 Reimbursement #4 Totals Paid - - - - - - - 44,938.85 44,938.85 Remaining - - - - - - - - - Amount - 252,478.79 - - - - - - 252,478.79 Reimbursement #4A Totals Paid - - - - - - - - - Remaining - 252,478.79 - - - - - - 252,478.79 Amount - - - - - - - 46,511.71 46,511.71 Reimbursement #5 Totals Paid - - - - - - - 46,511.71 46,511.71 Remaining - - - - - - - - - Amount - - - - - - - 47,441.06 47,441.06 Reimbursement #6 Totals Paid - - - - - - - 47,441.06 47,441.06 Remaining - - - - - - - - - Amount - - - - - - - 14,889.51 14,889.51 Reimbursement #7 Totals Paid - - - - - - - 14,889.51 14,889.51 Remaining - - - - - - - - - Total Charges PEDC Grant 2-May-2017 21-May-2019 30-Jun-2020 09/20 Int Recalc 30-Jun-21 30-Jun-22 01-Jul-23 31-Jul-24 Total Payments Remaining Balance Total Payment 500,000.00 153,628.50 19,958.86 16,503.80 82,047.32 13,771.06 184,548.61 41,005.70 110,271.98 1,121,735.83 1,222,119.65 Interest 183,469.81 - 7,026.25 19,958.86 16,503.80 82,047.32 13,771.06 44,162.52 - - 183,469.81 - Construction Costs 2,160,385.67 500,000.00 146,602.25 - - - - 140,386.09 41,005.70 110,271.98 938,266.02 1,222,119.65