TIF/TIRZ board debates auditors

During its Aug. 31, 2017 meeting, the Forney TIF/TIRZ Board met and (this is the preliminary report, subject to change):

• Tabled approval of the minutes, as they weren't included in the board packet.
  
• Mr. Thatcher gives an overview of the TIF/TIRZ and all related matters.
  He said a TIRZ is a development tool to spur development. When established, a base value is set, as development goes in taxes are collected on the increased value and put into a fund, for which the board decides on reimbursable costs. The Gateway development is sizable TIRZ, commercial & residential. Initially the focus was on retail which did not come to fruition. Cedars & Oaks apts are in this TIRZ, so money is coming in to use for reimbursements. The bridge was the major piece to be reimbursed. Haven't had any reimbursements yet, but have been a lot of costs. The zone is in place for 30 years, at least 20 years left on it.
      Mr. Fisher says activity occuring now, received a couple binders with invoices. The board will need to meet monthly. Mr. Holler asks if the 380 expired - yes, developer has asked about renewing it, city is considering it, pondering if is anything viable out there.
  
• Approved the fiscal year 2016 Annual TIF report.
      Mr. Fisher said he emailed the report, budget of about 54 mil dollars, 24+ million expended so far, revenue of $189k in 2016, total of $336k. Developer has submitted for reimbursement.
  
• Moved to produce an RFQ for the hiring of an auditor to review documents in relation to the TIRZ and the Owner Reimbursement Agreement.
      Mr. Fisher says owner has submitted 2 binders going back to beginning of project, suggests an auditor/accountant to make sure these public funds are expended correctly. He reached out to a group who will do an audit for $5-7k, most others are $15k. Mr. Holler asked how this group was found - by researching other TIRZs. Mr. Smith asks if isn't normal to RFP - Mr. Fisher & Mr. Phillips say not usually for finance services. Mr. Thatcher said no statutory requirement to bid.
      Mr. Holler said he knows not required, but would like to see what other firms could offer. Mr. Fisher says they have looked, these were only ones that work with TIRZ. Mr. Holler asks if Mr. Fisher has dealt with them before - no, but recognizes their name from other documents.
      The board expressed concern that the proposal is an estimated price. Mr. Smith asked how much interaction with each company - Mr. Fisher said Ms. Woodham interviewed both. They were provided the same information.
      Mr. Fisher said doing an RFP will add 60 days at least. Mr. Fisher was expecting it to be 15k. Mr. Smith would like to have a 3rd bid.
      Mr. Holler would prefer more than 3 bids. Mr. Fisher was surprised at this lower price, but the firm saw the documents, audit season is coming up and many firms are already committed. Chmn. Phillips said can't be many firms doing these audits. Mr. Smith asks if its more difficult bc expired - Mr. Fisher says 380 has nothing to do with this. Chmn. Phillips asks about ending date; Mr. Fisher says they are floating idea reducing rate and removing end date.
      Board moved to to send out for RFQ for the audit.
  
• Future agenda items
     Mr. Fisher says developer met with them regarding issues & concerns, one is 12% return rate, they are willing to drop to 8% if remove end date. Developer is building road from fire station to Gateway, city agreed to pay 1/2, needs to come before the board. Staff has submitted request to txdot for signal at Gateway. Maintenance agreement for landscaping will be turned over to city.
      The board had a lengthy chat with Mr. John Blackburn, of the Gateway Development, about the future of retail.
      Board sets next meeting for Mon. Oct. 2nd.
  
• Adjourned 1928.