One Denton school board member signaled support while others raised concerns Tuesday about the district’s possible participation in a tax-increment reinvestment zone to fund the city’s proposed convention center.
City officials made a presentation during the school board’s Tuesday meeting, offering updates about the project’s reduction in size.
Aimee Bissett, the city’s economic development director, said Denton is asking the county and school district to participate at levels they would each be comfortable with, up to 75 percent over 30 years. The city projects that if the school district participated at 75 percent, it would generate $3.9 million over the life of the TIRZ.
If the district opted to proceed, the city and Denton ISD would enter into a participation agreement in which the district would give up a portion of its interest and sinking property tax revenue generated from the proposed hotel and restaurant to help fund the debt service on the convention center.
Bissett said there are provisions within the participation agreement stating that if the state’s school funding allocation changes for any reason, in any way that would negatively impact the school district, then the district would have the option to pull out of its participation in the TIRZ. If the project is not approved, the City Council would take separate action to dissolve the TIRZ, she said.
Trustee Dorothy Martinez said she was concerned that the city was attempting to get local residents to approve a bond package while at the same time undertaking the convention center project. She questioned whether the city could get residents’ support for both.
“This bothers me,” she said. “You have a lot going on in the city right now, and that’s a problem."
Fellow board member Mia Price expressed concern about a state law that keeps school districts from contributing to the funding of private hotels.
“I don’t want any possibility, in the event that we do do this, of that coming back to backfire on us,” she said.
According to Jon Fortune, assistant city manager, that shouldn’t be an issue since the money from the district’s participation would go toward the convention center.
Board President Glenna Harris expressed concern about the number of properties over the last two decades that have fallen off the tax rolls. She noted property such as the Sack & Save location that the University of North Texas is attempting to buy. It’s something, she said, that gives her “pause for thought.”
She also expressed concern about the city’s comparison and feasibility studies for the project.
“There’s been property after property over the last 20 years that I’ve been here that have fallen off the tax rolls, and it just sort of makes my teeth a little bit on edge when finally perhaps ... we’ve come back on the tax rolls [but] we’re being asked to do what sounds like a kickback,” she said.
“We have an increasing student population and we need to build buildings,” she said, “and if we weren’t bound by our 50-cent [interest and sinking tax rate] limit, we would be building more than just a high school and elementary school.”
School board member Jim Alexander appeared to be in favor of the proposed convention center project. He said he sees the economic, social and community value the project could bring, including tax base growth and job generation.
“In a sense if the school does agree and the county does agree to provide a portion of its tax revenue as part of this TIRZ program, then what we are actually doing is forgoing a portion of the revenue stream that we were never going to get unless this project comes into fruition,” he said. “I think it’s really important that our public understand that.”
Alexander said the school district would not be turning over any of its current revenue to the city for the convention center project.
“We’re not forgoing revenue, we’re actually going to have a larger revenue flow than we would have unless this project comes into being,” he said. “I really think there is much misinformation out there among our community.
“I see all kinds of values that come from this and I would very much like to see a convention center in Denton. It’s good for Denton ISD, it’s good for the city, it’s good for the chamber, it’s good for the county and it’s good for all the existing businesses.”
Fortune said Denton will need a response from the school district soon. He said the city is trying to avoid an escalation in construction costs.
The school board could consider participating in the TIRZ as soon as its next board meeting.
“We’re kind of at a critical stage,” Fortune said. “We’re nearing a point and time very soon where we’re going to need that information.”
In other action
Also at Tuesday’s school board meeting:
* The school board unanimously approved land in the Paloma Creek South subdivision on Navo Road, just south of site of comprehensive High School No. 4 as the site for the district’s 23rd elementary school Tuesday. The site is approximately 15 acres and was donated by Denton 380 Associates LP, developers of Paloma Creek South. District officials anticipate opening the new elementary school the fall of 2016 in conjunction with the high school. The two schools are part of a $312 million bond package approved by voters last November.
* The board voted 7-0 to amend the guaranteed maximum price for the district’s next high school from about $116.1 million to $113.9 million. Superintendent Jamie Wilson has previously said the price adjustment includes only building construction costs.
* The board discussed three calendar options for 2015-16 academic year. The proposed calendar options will be discussed among the district improvement council, district administrators and PTA members over the next several weeks. The board is expected to consider action on next year’s academic calendar on Oct. 28.
BRITNEY TABOR can be reached at 940-566-6876 and via Twitter at @BritneyTabor.
