Harlingen DevelopmentHarlingen DevelopmentCorporationCorporation

City of Harlingen, TexasCity of Harlingen, Texas

Presented by:Presented by:

Humberto Zamora Humberto Zamora • President• President Jim SpringfieldJim Springfield • Vice-President• Vice-President Armando Elizarde Armando Elizarde • Treasurer / Secretary• Treasurer / SecretaryJim DenisonJim Denison • Board Member• Board Member

Eddie MedranoEddie Medrano • Board Member• Board Member

2007 EDC PROJECTS2007 EDC PROJECTSEstimated Participation ValuesEstimated Participation Values

Project Fisher$1,000.000.00

Project Falcon Bank$0.00

Project Harlingen Venture Two$3,000,000.00

Project Cardone$500,000.00

NNN Harrison Crossing (Walgreen’s - Starbuck’s - T-Sprint) $286,537.00.

Project Mongolian Grill$12,000.00

Project Sony’s Fish Fry$26,000.00

Project ACT Call CenterPending

Project South Texas Shrimp Processing$350,000.00 +

PenskeRestructured Contract

VBMC/RAHC Nutritional Research Project$500,000.00

Lowes - Gas Line Extension$18,000.00

Harlingen Sports Foundation$300,000.00

Mid Valley Door & Truss$200,000 Refinanced

Via Novo Consultants$60,000.00

ITD Precision Metal Stamping$76,300.00

Airport - Project Valley Hangars$10,000.00

Webb Saw & Tool$119,750.00

Penn Aluminum$300,000.00

Project VIDA$250,000.00

Downtown Improvement District$40,000.00

Millsap/Shipley Consultants$120,000.00

TIF Consultant - Kline & Associates$30,000.00 +

United Launch AlliancePending Negotiations

Washington Consultant$120,000.00

Harlingen Chamber of Commerce$90,000.00

Hispanic Chamber of Commerce$60,000.00

Organizational StructuralOrganizational StructuralEntities Required for GrowthEntities Required for Growth

Chapter 373. COMMUNITY DEVELOPMENT IN MUNICIPALITIES (1987)Chapter 373. COMMUNITY DEVELOPMENT IN MUNICIPALITIES (1987)

Chapter 373A. HOMESTEAD PRESERVATION DISTRICTS ANDChapter 373A. HOMESTEAD PRESERVATION DISTRICTS AND REINVESTMENT ZONES (2005)REINVESTMENT ZONES (2005)

Subchapter C: HOMESTEAD LAND TRUST (2005)Subchapter C: HOMESTEAD LAND TRUST (2005)

Chapter 379. NORTH AMERICAN FREE TRADE AGREEMENTChapter 379. NORTH AMERICAN FREE TRADE AGREEMENT IMPACT ZONE (2001)IMPACT ZONE (2001)

Chapter 379A. MUNICIPAL DEVELOPMENT CORPORATIONS (2001)Chapter 379A. MUNICIPAL DEVELOPMENT CORPORATIONS (2001) Subchapter D. POWERS OF CORPORATIONSubchapter D. POWERS OF CORPORATION Sec. 379A. 051. ProgramsSec. 379A. 051. Programs

Organizational StructuralOrganizational StructuralEntities Required for Growth (Cont.)Entities Required for Growth (Cont.)

Chapter 380. Chapter 380. MISCELLANEOUS PROVISION RELATING TOMISCELLANEOUS PROVISION RELATING TOMUNICIPAL PLANNING AND DEVELOPMENTMUNICIPAL PLANNING AND DEVELOPMENT(1989/2005)(1989/2005)

Chapter 386. Chapter 386. COMMERCIAL AND INDUSTRIAL DEVELOPMENTCOMMERCIAL AND INDUSTRIAL DEVELOPMENTZONES (2001)ZONES (2001)

Chapter 431. Chapter 431. MUNICIPAL AUTHORITY RELATING TO PARKING (1987)MUNICIPAL AUTHORITY RELATING TO PARKING (1987)

State Program.State Program. STATE OF TEXAS AFFORDABLE HOUSINGSTATE OF TEXAS AFFORDABLE HOUSINGCORPORATION (2005)CORPORATION (2005)

Chapter 373. COMMUNITYChapter 373. COMMUNITYDEVELOPMENTDEVELOPMENT

IN MUNICIPALITIESIN MUNICIPALITIES

Chapter 373A. HOMESTEADChapter 373A. HOMESTEADPRESERVATIONPRESERVATION

DISTRICTS AND REINVESTMENTDISTRICTS AND REINVESTMENTZONESZONES

Chapter 373A. HOMESTEADChapter 373A. HOMESTEADPRESERVATIONPRESERVATION

DISTRICTS AND REINVESTMENTDISTRICTS AND REINVESTMENTZONESZONES

Subchapter CSubchapter CHOMESTEAD LANDHOMESTEAD LAND

TRUSTTRUST

Chapter 373A. HOMESTEAD PRESERVATIONChapter 373A. HOMESTEAD PRESERVATIONDISTRICTS AND REINVESTMENT ZONESDISTRICTS AND REINVESTMENT ZONES

Subchapter C HOMESTEAD LAND TRUSTSubchapter C HOMESTEAD LAND TRUST

Possible Uses Possible Uses

1.1. Development of Community Buildings economicDevelopment of Community Buildings economic development .development .

2. 2. Reinvesting the City foreclosed lots and homes by givingReinvesting the City foreclosed lots and homes by giving the properties to eligible applicants.the properties to eligible applicants.

3. Negotiate with the Harlingen Irrigation District for the3. Negotiate with the Harlingen Irrigation District for the abandoned canal properties which can be developedabandoned canal properties which can be developed into walkways, bike zones, residential, commercial,into walkways, bike zones, residential, commercial, industrial and manufacturing projects.industrial and manufacturing projects.

Chapter 379. NORTHChapter 379. NORTHAMERICAN FREE TRADEAMERICAN FREE TRADE

AGREEMENT IMPACTAGREEMENT IMPACTZONEZONE

Chapter 379. NORTH AMERICAN FREE TRADEChapter 379. NORTH AMERICAN FREE TRADEAGREEMENT IMPACT ZONEAGREEMENT IMPACT ZONE

Possible Uses Possible Uses

1.1. “ “F” Street CorridorF” Street Corridor

2.2. Downtown Improvement District CorridorDowntown Improvement District Corridor

3.3. Stuart Place Road CorridorStuart Place Road Corridor

4.4. North Loop 499 CorridorNorth Loop 499 Corridor

5.5. South 77 Sunshine Corridor – Behind Su ClinicaSouth 77 Sunshine Corridor – Behind Su Clinica and the I.R.S.and the I.R.S.

Chapter 379. NORTH AMERICAN FREE TRADEChapter 379. NORTH AMERICAN FREE TRADEAGREEMENT IMPACT ZONEAGREEMENT IMPACT ZONE

Chapter 379A. MUNICIPALChapter 379A. MUNICIPALDEVELOPMENTDEVELOPMENT

CORPORATIONS (2001)CORPORATIONS (2001)

Subchapter D. POWERSSubchapter D. POWERSOF CORPORATIONOF CORPORATION

Sec. 379A. 051. ProgramsSec. 379A. 051. Programs(1) Job training(1) Job training

(2) Early childhood development(2) Early childhood development

(3) After-school programs(3) After-school programs

(4) Funding to accredited postsecondary educational institutions(4) Funding to accredited postsecondary educational institutions

(5) Promotion of literacy(5) Promotion of literacy

(6.A) Development of a skilled workforce(6.A) Development of a skilled workforce(6.B) May develop or use land(6.B) May develop or use land

Chapter 379A. MUNICIPAL DEVELOPMENTChapter 379A. MUNICIPAL DEVELOPMENTCORPORATIONS (2001)CORPORATIONS (2001)

Subchapter D. POWERS OF CORPORATIONSubchapter D. POWERS OF CORPORATIONSec. 379A. 051. ProgramsSec. 379A. 051. Programs

Possible Uses Possible Uses

1. University Development to create a four year local1. University Development to create a four year local affiliate campus with an existing major university,affiliate campus with an existing major university, preferably Texas A&M (Engineering, Pharmacy and Education)preferably Texas A&M (Engineering, Pharmacy and Education)

2. Development of early childhood institutions 2. Development of early childhood institutions

Chapter 380 MISCELLANEOUSChapter 380 MISCELLANEOUSPROVISION RELATING TOPROVISION RELATING TO

MUNICIPAL PLANNINGMUNICIPAL PLANNINGAND DEVELOPMENT (1989/2005)AND DEVELOPMENT (1989/2005)

Chapter 380 MISCELLANEOUS PROVISION RELATING TOChapter 380 MISCELLANEOUS PROVISION RELATING TOMUNICIPAL PLANNING AND DEVELOPMENT (1989/2005)MUNICIPAL PLANNING AND DEVELOPMENT (1989/2005)

Possible UsesPossible Uses

1. Waters Edge Dining (Land Lease and encroachment.)1. Waters Edge Dining (Land Lease and encroachment.)A. City Lake CafeA. City Lake CafeB. Dixieland Lake RestaurantB. Dixieland Lake Restaurant

2. Innovative Sales Tax Credit Project2. Innovative Sales Tax Credit ProjectA. New Construction materialsA. New Construction materialsB. Remodeling Construction materialsB. Remodeling Construction materials

3. Commerce Center Park3. Commerce Center Park

Chapter 386. COMMERCIALChapter 386. COMMERCIALAND INDUSTRIALAND INDUSTRIAL

DEVELOPMENT ZONESDEVELOPMENT ZONES

Chapter 386. COMMERCIAL AND INDUSTRIALChapter 386. COMMERCIAL AND INDUSTRIALDEVELOPMENT ZONESDEVELOPMENT ZONES

Possible Uses Possible Uses

Establishing of a Biomedical Commerce ParkEstablishing of a Biomedical Commerce Parkon land available east of VBMCon land available east of VBMC

TITLE 14. PARKING ANDTITLE 14. PARKING ANDTRANSPORTATIONTRANSPORTATION

Chapter 431. MUNICIPALChapter 431. MUNICIPALAUTHORITY RELATING TOAUTHORITY RELATING TO

PARKINGPARKING

TITLE 14. PARKING AND TRANSPORTATIONTITLE 14. PARKING AND TRANSPORTATIONChapter 431. MUNICIPAL AUTHORITY RELATING TOChapter 431. MUNICIPAL AUTHORITY RELATING TO

PARKINGPARKING

Possible Uses Possible Uses

1. Parking facility for 250 new employees1. Parking facility for 250 new employees working for the ACT Call Centerworking for the ACT Call Center

2. Parking facilities for all new business2. Parking facilities for all new business developments requiring assistancedevelopments requiring assistance

STATE OF TEXAS PROGRAMSTATE OF TEXAS PROGRAM

Texas State Affordable Housing Corporations (2005)Texas State Affordable Housing Corporations (2005)

Single Family HousingSingle Family Housing1005 Congress Avenue, Suite 5001005 Congress Avenue, Suite 500Austin, Texas 78711-2637Austin, Texas 78711-2637

2006 B. Home for Texas Heroes Program2006 B. Home for Texas Heroes Program6.15%6.15% Interest RateInterest Rate797,756 797,756 Money AvailableMoney Available

2007 B. Homes for Professional Educators Program2007 B. Homes for Professional Educators Program6.60%6.60% Interest RateInterest Rate19,266,25419,266,254 Money AvailableMoney Available

Both programs offer 30 year fixed rate mortgageBoth programs offer 30 year fixed rate mortgage

Both programs offer down payment and closing costBoth programs offer down payment and closing cost assistance, up to 5% of the mortgage amount.assistance, up to 5% of the mortgage amount.

STATE OF TEXAS PROGRAMSTATE OF TEXAS PROGRAM

Program Eligibility for Heroes and EducatorsProgram Eligibility for Heroes and Educators

Heroes:Heroes: Educators:Educators:

• • Fire FighterFire Fighter • Classroom Teacher• Classroom Teacher

• • EMS PersonnelEMS Personnel • Teacher’s Aid• Teacher’s Aid

• • Peace OfficerPeace Officer • School Librarian• School Librarian

• • Corrections OfficerCorrections Officer • School Nurse• School Nurse

• • Juvenile Corrections OfficerJuvenile Corrections Officer • School Counselor • School Counselor

• • County JailerCounty Jailer • Allied Health Professional• Allied Health Professional

• • Public Security OfficerPublic Security Officer • Nursing Professional• Nursing Professional

• • Working in State of TexasWorking in State of Texas • Working in State of Texas• Working in State of Texas

Buyers / Future TaxpayersBuyers / Future TaxpayersAffordable Housing Incentives ProgramAffordable Housing Incentives Program

Buyers Incentives Plan Per HomeEconomic Impact

1 New Home - Appraised Value for- Harlingen’s Median Home Value

Property Taxes:

City Sales Taxes:

Revenue from building 1-New Home

Cameron CoCity HarlingenHarlingen ISD

South Texas ISDCOMBINED RATE

COMBINED TAXES

Construction Materials

Construction WagesWages Spent in Town

City Sales Texas

Values

$ 110,000

Tax RateTax RateTax RateTax Rate

PER HOME$ 55,000

$ 30,00060%

$ 487/Home

Taxes$100/Value

0.3481910.59

1.4240.0392

2.401391

8.25%2.00%

$18,0002.00%

Taxes

$ 383$ 649$ 1,566$ 43______$ 2,642

$ 4,537$ 1,100

$ 360$ 487$ 1,947

Year1

$0$0$0$0

Year 2

$649

Year 3

$1,298

Year 4

$1,947

Year 5

$2,596

City will not be losing its property taxbase, only 2% sales and use tax

associated with the actual constructionproject.

EDC 5 YEARS HOUSING PLAN AND MODEL

100 New Homes Gross Sales atEDC Investment / 100-HomesCity-Construction 2% Sales TaxesCity-Labor 2% Sales TaxesTotal Public Investment%City Investment on 100 Homesand $11,000,000 New Tax Base

Return on Public Investment

Homes / Year100

$ 48,700$ 110,000$ 6,000$ 194,7000

1.77%

$110,000100 Year 1

$11,000,000

$194,700

100 Year 2$11,000,000

$194,700

100 Year 3$11,000,000

$194,700

100 Year 4$11,000,000

$194,700

100 Year 5$11,000,000

$194,700

Total 5 Years500 Homes$55,000,000$ 243,500$ 550,000$ 180,000$ 973,500

1.77%

EDC MATCHING FUNDSSTotal Taxes Abatement

Harlingen Invested $ 973,500 and Received $ 55,000,000 in Housing ValueHarlingen Invested $ 973,500 and Received $ 55,000,000 in Housing ValueHarlingen’s Tax Base Increase is Now $ 1,321,000 per year / perceptualHarlingen’s Tax Base Increase is Now $ 1,321,000 per year / perceptual

Harlingen Development Corporationmonthly meetings are on the last Tuesday

of the month at 4 p.m. at the HarlingenCity Hall. The general public is invited to

attend.

Thank You