COUNCIL CHAMBER

170365February 22, 2017

WHEREAS, the City recognizes the importance of its role in local economicdevelopment initiatives and programs; and

WHEREAS, the City has established Tax Increment Financing Reinvestment ZoneNumber Ten, (“Southwestern Medical TIE District” or “District”) and established a Boardof Directors for the District to promote development or redevelopment in theSouthwestern Medical area pursuant to Ordinance No. 25965, authorized by the CityCouncil on April 27, 2005, as authorized by the Tax Increment Financing Act, Chapter311 of the Texas Tax Code, as amended; and

WHEREAS, on January 11, 2006, City Council authorized the Project Plan andReinvestment Zone Financing Plan for the Southwestern Medical TIE District byOrdinance No. 26204, as amended; and

WHEREAS, the Tax Increment Financing Act specifies that the governing body of a cityshall submit an annual report on the financial status of the district to the Chief ExecutiveOfficer of each taxing unit that levies taxes on real property in a reinvestment zone, anda copy of the report shall be forwarded to the State Comptroller; and

WHEREAS, on December 5, 2016, the Southwestern Medical TIE District Board ofDirectors passed a motion accepting the FY 2016 Annual Report for Tax IncrementFinancing Reinvestment Zone Number Ten and recommending approval of same bythe City Council.

NOW, THEREFORE,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DALLAS:

Section 1. That the FY 2016 Annual Report for Tax Increment Financing ReinvestmentZone Number Ten, (Southwestern Medical TIE District), City of Dallas, Texas, as ofSeptember 30, 2016, a copy of which is attached hereto (Exhibit A), is herebyaccepted.

Section 2. That the City Manager is hereby authorized to submit the FY 2016 AnnualReport for Tax Increment Financing Reinvestment Zone Number Ten, to the ChiefExecutive Officer of each taxing jurisdiction that levies taxes on real property in theDistrict; and to the State Comptroller, as required by state law.

Section 3. That this resolution shall take effect immediately from and after its passagein accordance with the provisions of the Charter of the City of Dallas, and it isaccordingly so resolved.

APPROVED BYCITY COUNCIL

FEB 222017

—,— (-&City Secretary

Southwestern Medical TIF DistrictFY2016

Annual Report

City of Dallas

Office of Economic Development1500 ManIla Street, 2CN

Dallas, Texas 75201(214) 671-9821

http://www.dallas-ecodev.org.

170365

October 1, 2015 to September 30, 2016

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170365Southwestern Medical TIF District FY 2016 Annual Report

Table of Contents

Mission Statement 4Southwestern Medical TIF District Accomplishments 4Current Development Status in the District 9Southwestern Medical TIE District Projects 9Value and Increment Revenue Summary 10Objectives, Programs, and Success Indicators 10Year-End Summary of Meetings 12Pending TIE Items 13Budget and Spending Status 13MIWBE Participation 14FY 2017 Work Program 15Appendix— Financials 16

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170365Southwestern Medical TIF District FY 2016 Annual Report

Mission Statement

The mission of the Southwestern Medical Tax Increment Financing District is to providea source of funding for public infrastructure improvements anticipated to enhance the realestate market for the Southwestern Medical TIE District area. The Southwestern MedicalTIE District represents the outgrowth of the City of Dallas’ effort to provide a model forredeveloping a former industrial and warehouse district to take full advantage of theexpanding DART light rail system, to promote transit oriented development, especially inareas that are major employment centers like the Medical District, and to implementappropriate urban design standards.

The Dallas City Council established the Southwestern Medical TIE District by OrdinanceNumber 25965 on April 27, 2005 and amended. The Southwestern Medical District tookeffect on January 1, 2006 and is scheduled to terminate on December 31, 2027 (includingcollection of the 2027 increment on calendar year 2028 and any related matters to beconcluded in 2028) or when the budget of $27.5 million (2006 dollars) has been collected.The City of Dallas and Dallas County are the two participating jurisdictions; The City’sparticipation is 80%, and the County’s participation is 55% of incremental revenuecollected.

Southwestern Med ica TW District Accomphshments

The initial project for the Southwestern Medical TIE District is the Colonial Reserve atMedical District (formerly Cityville Southwestern Medical District). In 2007, EirstWorthingcompleted the first phase of this transit oriented development, including approximately45,000 square feet of retail/office space and 278 apartment units near the SouthwesternMedical DistrictiParkland light rail station. Current taxable value as per the Dallas CentralAppraisal District (DCAD) is $37.8 million.

EirstWorthing, after completing the first phase (now called the Colonial Reserve atMedical District), sold their remaining land holdings to Trammel Crow ResidentialDevelopment (TCR) and Ronald McDonald House. Vibe Medical District Apartments(formerly The Alexan Southwestern) is a residential, transit oriented development, andincludes 396 luxury apartments, completed in 2009. The project is comprised ofapproximately 377,816 square feet of residential space, located at 2140 Medical DistrictDrive. Current taxable value as per the DCAD is $56.3 million.

Adjacent to the Vibe Medical District Apartments, Ronald McDonald House constructed60 units of low-cost, temporary lodging/dorm facilities for families with children receivingmedical care, totaling approximately 64,000 square feet of space, located at 4707 BengalStreet.

The Link on Maple (formerly Maple Garden LP.), a 120 apartment complex at 5219 MapleAvenue, adjacent to Parkland East Parking Lot (EPL) started leasing their units in summerof 2012. Current taxable value as per the DCAD is $15.1 million.

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170365Southwestern Medical TIF District FY 2016 Annual Report

Parkland Memorial Hospital owns 21.5% of the land within the District. Parklandundertook a major construction project, replacing the outdated main hospital facility witha new one. The $1.2 billion Parkland expansion plan include a 17-story hospitalsurrounded by new clinics and parking garage located around the planned SouthwesternMedical District/Parkland DART light rail station. The construction work started withdemolition at the corner of Harry Hines Boulevard and Medical District Drive to make wayfor new buildings and construction of East Parking Lot at the corner of Maple Avenue andMedical District Drive is in progress. Construction was completed on the new facility inlate 2014, with its official grand opening occurring in August 2015.

UT Southwestern Medical Center and Children’s Medical Center, located just outside ofthe district, are planning significant expansion within the next decade. In addition to therecent expansion of the main hospital and completion a new surgery center, Children’sexpects to complete a third tower at the main hospital, and a new Ambulatory CarePavilion over the next five to ten years.

UT Southwestern Medical Center’s new William P. Clements Jr. University Hospitalopened December 2014. The new $800 million, 460-bed hospital facility located at 6201Harry Hines Boulevard, was designed to carry out UT Southwestern’s patient-caremission, while also incorporating space for physician training and for clinical researchaimed at developing ever more effective, high-quality treatments for patients.

DART Green Line expansion (NW corridor) is completed and the Southwestern MedicalDistrict/Parkland light rail station was opened in December 2010. The Orange Line runsparallel with the Green Line through Downtown Dallas to Bachman Station in NorthwestDallas, which opened in 2014. During FY 2016, on an average, the Southwestern MedicalDistrict/Parkland light rail station serviced 2,486 passengers per week day, a 4.0%increase in ridership compared to last year.

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170365Southwestern Medical TIF District FY 2016 Annual Report

Total taxable private development in the Southwestern Medical TIE District is valued atapproximately $194.5 million. Listed below are the projects in the Southwestern MedicalTIE District at various stages of development.

New Parkiand Hospital The New Parkland Hospital

Colonial Reserve The Link on Maple

Parkland Ambulatory Center Ronald McDonald House

6

170365Southwestern Medical TIE District

aEY 2016 Annual Report

Vibe Medical District Aots. Maple District Lofts

7

I 70365Southwestern Medical TIE District FY 2016 Annual Report

—

8

170365Southwestern Medical TIE District EY 2016 Annual Report

Current Development Status in the DistrictSouthwestern Medical TIF District Projects

0 - - 0 oe_

Projects Within TIF District Utilizing TIF FundingCalendar

TIFProject Location Year Status Units! SF2 Approx. Value3

Investment4

_____________ __________

Complete

_________ ___________________________ ___________

4623Cedar Branch

Hawthorne 2017 Planned112

$41,398,336 $7,898,366Townhomes Townhomes

Avenue

Adj toCedar Branch

Cedar 2019 Planned Bridge TBD $826,500Bridge

BranchTH

Total $41,398,336 $8,724,866

Projects Within TIF District Not Utilizing TIF Funding5Calendar

TIFProject Location Year Status Units! SF Approx. Value

InvestmentComplete

2222 278 res.Colonial Medical

2007 Completeunits; 45,000

$37,815,000 $0Reserve District SF

Drive commercial

2140Vibe Medical

Medical 2009 Complete 396 units $56,316,000 $0District Apts

District Dr.

Parkland 4900 Harry 62,267 SF$20,487,430

$0Ambulatory Hines 2006 Complete medical(non-taxable).

Center6 Boulevard office

Ronald 4707 64,000 SF$15,091,920

McDonald Bengal 2009 Complete lodging for $0(non-taxable)

House6 Street 60 families

5219Maple Garden 120

Maple 2011 Complete $15,128,000 $0Apartments apartments

Avenue

5201 Harry 2,000,000 SF$1,009,892,210Parkland

. Hines 2014 Complete medical $0(non-taxable)Hospital6

Boulevard space

Maple Avenue5415 342

Lofts ByMaple 2015 Complete residential $43,805,540 $0

Glen brookAvenue units

Residential Inc

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170365Southwestern Medical TIF District FY 2016 Annual Report

Total -

$194,462,876Taxable

Total - (NonTaxable) $1,045,471,560 $0

Completed: 1136 res. units; 45,000 $153,064,540SF retail; 2,062,267 SF medical office Completed

and 64,000 SF lodging.$41,398,336

112 Res. Units $8,724,866Planned

‘All information updated as of September30, 2016.2 upon either the TIF application or required minimum stated in the development agreement. May be

updated for completed projects based on actual unit mix and square footage.upon 1) market value of comparable projects for anticipated projects, 2) private investment stated in the

development agreement for projects that are approved or under construction, or 3) DCAD market value forcompleted projects (unless project has not yet been assessed). Values may not be fully captured by the TIF

district for redevelopment projects once pre-existing value and/or the demolition of structures is netted out.amount not to be exceeded per the development agreement. TBD indicates that development

agreement has not yet been adopted. Asterisk indicates investment also includes interest not shown.5 significant projects included.5Tax-exempt properties.

Value and Increment Revenue Summary

The Southwestern Medical TIF District encompasses approximately 245.7 acres. Thebase value is the total appraised value of all taxable real properties in the SouthwesternMedical TIF District as determined by the Dallas Central Appraisal District in the certifiedroll. The Southwestern Medical District’s assessed 2016 tax value was $217,960,787, anincrease of $150,549,733 over the base year value 223.3% (increased from base value).The 2016 tax value increased $27,848,229 (14.6%) from the 2015 tax value. The totalincrement revenue collected in 2016 is expected to be $1,143,727. The actualconstruction that occurred in FY 2016 will be reflected on the FY 2017 tax roll.

Objectives, Programs, and Success Indicators

The final Southwestern Medical Project Plan and Reinvestment Zone Financing Plan inJanuary 2006 and amended in December 2008. Among the goals of the Plan are:

Additional taxable value attributed to new private investment in projects in theSouthwestern Medical TIE District shall total approximately $280 million.

Completed projects within the district have contributed approximately$194.46 million (69.5% of goal) in additional taxable value from theinception of the District. Planned projects will contribute approximately$41.3 million (14.8% of goal). Total complete and planned projects of theterm of the district will reach 84.2% of goal.

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170365Southwestern Medical TIE District FY 2016 Annual Report

New private development in the Southwestern Medical TIE District shall add a totalof approximately 300,000 square feet of retail/office space and at least 3,000 newapartment units.

Projects completed within the district contribute a minimum of 2,171,267square feet of retail and medical space (723.8% of goal) and 1,136residential units completed (37.9% of goal). In addition, the ParklandHospital expansion plan alone features 2,000,000 sf medical space(included in retail/office goal), 17-story hospital surrounded by new clinicsand parking garages, valued approximately $1.2 billion (non-taxable).

• Ridership at the Southwestern Medical District/Parkland light rail station shallaverage 4,000-5,000 riders per weekday by 2015.

During FY2016, on an average, the Southwestern Medical District/Parklandlight rail station serviced 2,486 passengers per week day, a 4.0% increasein ridership compared to last year.

• Improve the access and connections to the DART light rail system within theSouthwestern Medical TIE District.

The Southwestern Medical District/Parkiand light rail stations opened in2010 and currently seive the district. Staff and the Board will continue tofoster working relationships with Parkland, DART, and potential developersto encourage access and connections to this rail station. The ColonialReserve at Southwestern Medical District development includesstreetscape improvements along Medical District Drive and Bengal Streets.

• Support the conversion of the Southwestern Medical area from industrial andwarehousing land uses to a mixed-use, transit oriented neighborhood thatcomplements the Medical District.

Staff and the Board will continue to foster a working relationship withParkland, DART, and potential developers to encourage transit orienteddevelopment that complements the district. The Colonial Reserve atSouthwestern Medical, Vibe Medical District Apartments projects haveresulted in the conversion of former industrial and warehousing uses toresidential and retail uses. The Stemmons Corridor - Southwestern MedicalDistrict Area Plan (Vision and Policy Plan) was adopted by the City Councilin June, 2010.

• Increase recreational opportunities and improved connections to the City of Dallastrails and open space system in the Southwestern Medical Area.

Staff and the Board will seek ways to increase recreational opportunitiesand trail connections (Trinity Strand Trail) within the District and inconstruction with the Parkland construction. Previous discussions have

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170365Southwestern Medical TIF District FY 2016 Annual Report

discussed the creation of a trail along Cedar Branch. The trail would be onCity-owned land and easements plus DISD property that would connectKings Road to Lucas Drive by running parallel to Cedar Branch. Theproposed trail would be adjacent to the proposed Cedar Branch townhomesdevelopment along Hawthorne Avenue and run through the lower quarterof DISD property (Esperanza Medrano Elementary School). The aim of theneighborhood trail would link neighborhoods adjacent to the Trinity StrandTrail along DART’s overhead rail line. Staff is currently designing TrinityStrand Trail Phase I, with consideration of a Phase II south of Phase I thatwould be connected to the DART line under development.

The Southwestern Medical TIF District will generate approximately $27.5 million inincrement over 20 years.

The growth is significant in initial Zone A and new area Zone B that hasbeen added will develop over the next couple of years. The district startedcollecting increment and it is estimated that the district will generate $27.5million (in 2006 dollars) before the TIF expires in 2027. Between, the Cityand Dallas County, the district as of 2015 has collected $4,340,884 (15.8%of the goal).

Develop a grant program to promote private medical industry and economicdevelopment in the District.

Staff and the Board will continue to foster a working relationship with UTSouthwestern Medical Center, Children’s Hospital and Parkland Hospital tocreate investment opportunities in the District.

Year-End Summary of Meetings

During the fiscal year, the Southwestern Medical TIF District Board of Directors met fortwo meetings. During FY 2015-16 the Board members were: Robert Prejean — CityRepresentative, Chair (2 of 2 meetings), John Wilson (2 of 2 meetings) — CityRepresentative, Derek Watson — City Representative (1 of 2 meetings), Michael Serber— City Representative (2 of 2 meetings), Rob Elmore — City Representative (2 of 2meetings), and Rick Loessberg — Dallas County Representative (1 of 2 meetings).

During the fiscal year, the City Council approved three (3) items associated with theSouthwestern Medical TI F District:

• On February 24, 2016 the City Council approved Resolution 16-0338 acceptingthe FY 2015 Annual Report on the status of Tax Increment Financing Reinvestment ZoneNumber Ten, (Southwestern Medical TIE District), submitted by the SouthwesternMedical TIE District’s Board of Directors, and authorizing the City Manager to submit theannual report to the Chief Executive Officer of each taxing jurisdiction that levies taxes onreal property in the District, and to the State Comptroller, as required by state law.

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170365Southwestern Medical TIF District FY 2016 Annual Report

• On June 22, 2016 the City Council authorize an amendment to Resolution No. 14-1271, previously approved on August 13, 2014, which authorized a TIE developmentagreement with Texas InTownHomes, LLC, to extend deadlines to start construction,obtain building permits, meet the minimum investment requirements, obtain a certificateof occupancy, complete construction of the infrastructure improvements, completeconstruction of each phase of the project, and to execute an operating and maintenanceagreement for the Cedar Branch Town homes Project.

• On June 22, 2016 the City Council authorized an amendment to Resolution No.14-1 273, previously approved on August 13, 2014, which authorized a TIE developmentagreement with Texas lnTownHomes, LLC, to extend the complete construction deadlineand the associated public improvements from June 30, 2020 to June 30, 2021 for theCedar Branch Bridge Project.

Pending TIF Items

• FY 2016 Annual Report, Southwestern Medical TIF District.

Budget and Spending Status

Each TIE district establishes a budget for the public improvement expenditures necessaryto support private investment in the district in the Project Plan and Reinvestment ZoneEinancing Plan. The Southwestern Medical TIE District was established in April 2005,amended in December 2008 and October 2009. The Project Plan estimates for TIE publicimprovements total approximately $44.5 million ($27.6 million in 2006 dollars). The finalbudget for the district is below:

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170365Southwestern Medical TIF District FY 2016 Annual Report

Southwestern Medical TIF District

Projected Increment Revenues to Retire TIF Fund Obligations

Category TIF Budget* Allocated** Baiance

Paving, streetscape, utilities, public-use$16,404, 1 14 $1,583,366 $14,820,748

improvements, design & engineering

Environmental remediation and demolition $4,633,384 $610,000 $4,023,384

Utility burial $8,547,203 $695,000 $7,852,203Economic Development Grant $13,370,877 $5,010,000 $8,360,877

Administration and implementation*** $1,617,883 $300,873 $1,317,010

Total Project Costs $44,573,461 $8,199,239 $36,374,222*Budget shown above in current dollars; TIF Project Plan shows the budget in net present value

**lncludes money expended and committed for existing and future projects including interest accrued on advanced funds as ofthe end of FY2016.***TIF administration fees include funds exoended or committed throuah FY 2016. FY 2016 Costs have not been included

Southwestern Medical TIF District

Project Plan Budget

Revised TIF BudgetCategory(in 2006 $)

Paving, streetscape, utilities, public-use improvements, design &$10,139,246engineering

Environmental remediation and demolition $2,863,856Utility burial $5,282,955Economic Development Grant $8,264,428Administration and implementation $1,000,000Total Project Costs $27,550,485

* As approved in the Project Plan and Reinvestment Zone Financing Plan.

. MIWBE Participation

MIWBE Participation

I Totai Contract Award I Percentage MinorityProject Contractor Amount Participation

Colonial Reserve at I ISouthwestern Medical 1 Davis Excavation $1,376,916.70 27.71% ($381,544)

1 voluntarily participated in the M/WBE program

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170365Southwestern Medical TIF District FY 2016 Annual Report

FY 2017 Work Program

The work items for FY 2017 for the Southwestern Medical TIE District include:

• Increase recreational opportunities and improved connections to the City ofDallas trails and open space system in the Southwestern Medical Area.

• Assist with facility improvements included in Medical District Master Plancoordinated/adopted by Parkland Health and Hospital System, Children’sMedical Center, and UT Southwestern Medical Center.

• Review Project Plan amendment to support redevelopment near the InwoodDART Station.

Cedar Branch Townhomes site - corner ofHawthorne Avenue and Production Drive

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170365Southwestern Medical TIF District FY 2016 Annual Report

Appendix — Financials

City of Dallas, TexasSouthwestern Medical Tax Increment Financing District

Notes to Financial Statements for the Year Ended September 30, 2016

1. The measurement focus used for the TIF Zone fund is a flow of financial resources. Thefinancial statements are prepared using the modified accrual basis of accounting. Under themodified accrual basis of accounting, tax increment revenues and interest are recognized asrevenue when they become both “measurable” and “available” to finance expenditures of thecurrent period. Expenditures are recognized when the liability is incurred.

2. State statute requires that each taxing jurisdiction remit its ad valorem taxes to the Zone byMay 1 of each year (remittance to occur no more than 90 days after taxes for the jurisdictionbecome delinquent).

3. The TIF’s cash balances are invested in the City’s investment pool and include amounts indemand deposits as well as short-term investments. Pooled investments and short-term non-pooled investments are treated as cash equivalents. Investment income on the pooledinvestments is prorated monthly based upon the average daily cash balance in each fund.

4. The Zone’s Financial Plan permits expenditures not to exceed $1,671 830 over the life of theTIF to reimburse the City for administrative costs. Any future remittance for administrativeexpenses would come from excess cash as tax increment revenue increases as a result ofincreased assessed values.

5. All project costs resulting in public improvements which are owned by the City are capitalized.

6. “Due to general fund” amount of $5,764 at September 30, 2016 represents the TIFadministration costs that have been earned but will be reimbursed to the General Fund in futureyears based on the availability of TIF funds.

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170365Southwestern Medical TIF District

City of Dallas, Texas

Southwestern Medical Tax Increment Financing District Fund

Balance Sheet as of Septem ber 30, 2016 (Unaudited)

With Comparative Totals for September 30, 2015, 2014, 2013, and 2012 (Audited)

FY 2016 Annual Report

2014

$4,042,358 $3,066,767 $2,398,625 $1,805,320 $1,354,632

$5,435 $3,679 $2,548 $1,957 $1,748

Total assets

Liabilities and Fund Balance (Deficit):

Liabilities:

Accounts and contracts payable

Advances from developers

Due to general fund

Accrued liability

Total liabilities

$4,047,793 $3,070,445 $2,401,173 $1,807,277 $1,356,380

$0 $0 $0 $0 $0

$0 $0 $0 $0 $0

$5,764 $5,764 $5,764 $5,764 $0

$0 $0 $0 $0 $0

$5,764 $5,764 $5,764 $5,764 $0

Fund Balance (Deficit):

Fund Balance (Deficit) $4,042,030 $3,064,682 $2,395,409 $1,801,514 $1,356,380

Total Liabilities and Fund Equity $4,047,793 $3,070,445 $2,401,173 $1,807,277 $1,356,380

($0) $0 $0 $0 $0

Southwestern Medical Tax Increment Financing District Fund

Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit)

For the Period September 30, 2016 (Unaudited)

With Comparative Totals for September 30, 2015, 2014, 2013, and 2012 (Audited)

Revenues:

2014

Tax increment-Governmental

Tax increment-htergovernmental

hterest income

$3,494,978 $785,111 $567,873 $531,991 $385,098 $266,860

$710,308 $165,321 $115,993 $111,382 $73,801 $47,062

$127,264 $27,619 $15,030 $9,309 $7,419 $6,410

$0 $0 $0 $0 $0

($703) $6,588 ($1,677) ($1,313) ($109)

Expenditures:

Total revenues

Administrative expenses

Non-Capital Outlay

Capital outlay

hterest and fiscal charges

Total expenditures

$5,825,001 $977,348 $705,484 $651,005 $465,005 $320,224

$301,209 $0 $36,211 $57,109 $19,871 $27,470l”

‘ o $0 $0 $0 $0 - $0

$1,481,762 $0 $0 $0 $0 $0r

$0 $0 $0 $0 $0 $0

$1,782,971 $0 $36,211 $57,109 $19,871 $27,470

Excess (Deficiency) of Revenues over Expenditures $4,042,030 $977,348 $669,273 $593,895 $445,134 $292,754

Fund balance (Deficit) at beginning of year

as previously reported

Fund balance (Deficit) at beginning of year,

as restated

Fund balance (deficit) at end of year

$0 $3,064,682 $2,395,409 $1,801,514 $1,356,380 $1,063,626

$0 $3,064,682 $2,395,409 $1,801,514 $1,356,380 $1,063,626

$4,042,030 $4,042,030 $3,064,682 $2,395,409 $1,801,514 $1,356,380

Note: Fiscal year 2015-16 unaudtted financial statements are based on preliminary close numbers and are subject to

review by the City Controllers Office prior to approval by the City Council. In case of any material changes, TIE board

will be provided with the updated financial statements.

Assets:

Pooled cash and cash equivalents

hterest receivable

2016 2015 2013 2012

lTD 2016 2015

Developer Participation & other revenue $1,481,970

Net increase (decrease) in fair value of investments $10,480

2013 2012

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170365Southwestern Medical TIF District FY 2016 Annual Report

City of Dallas, Texas

Southwestern Medical Tax Increment Financing strict Fund

Reinvestment Zone Number Ten

As of September 30, 2016

Chapter 311.016 of V.C.T.A. requires the following infornwtion

as part of the annual report on the status of the hF t3slrict.

tnfornwtion is contained in detail on the attached

financial staterrents.

1. Amount and source of revenue in the tax increment fund established for the zone:

$26,916 Interest Income

$950,432 Ad ValoremTaxes (Collected in FY’2013-14 based on 2013 Final Tao Roll)

$0 Developer Contribution

$977,349 Total Revenue

2. Amount and purpose of expenditures from the fund:

$0 Adninislralive Eopense (FY 2016 Costs to be updated)

$0 Non-Capital Outlay

$0 Capital outlay

$0 Additional Subsidy in Form of Grant (in lieu of interest eopense)

$0 Total Expenditures

3. The Zone began reirrhursing the general fund for adninistrative costs in fiscal year 2008-09.

4. a. Amount of Principal and Interest due-on outstanding bonded indebtedness is as follows:

Soutweslern tudicaI T1F Oslrict has incurred no bonded indebtedness as of Septenter 30, 2016.

b. The Zone entered into a development agreement with Texas InTow nHomes, LLC for the development of Cedars

Branch Tow nhorres project ivan amount not to eoceed $7,999,366 with anticipated completion in 2017 and

reintursenwnt to begin thereafter subject to availability of hF funds.

c. The Zone entered into a development agreement with Teoas loTow nHomes, LLC for the development of Cedars

Branch Bridge project in an amount not to exceed $826,500 with anticipated corrptetion in 2019 and

reirnntrsenent to begin thereafter subject to availability of TIF funds.

5. Tax increment base and current captured appraised value retained by the zone:

Taxable Base Year Ext. Captured

Taxing Jurisdiction Value 2016* 2005 Value Value 2016*

City of Dallas $217,960,787 $67,411,054 $150,549,733

Dallas County $217,955,797 $67.41 1,354 $150,544,433

Dallas krdependent School Cstrict - $0 $0 $0

Dallas County Hospital Ostricl $0 $0 $0

Dallas County Corrrwnity College Dat. $0 SO $0

2016 tunable value shown for parhcipating taoing jurisdictions. County values are approoimale and

will vary slightly from the City value due to diffcrest exemption levels.

*Based on lAO Certified Taoabte Value. The final values will be determined on February 01, 2017.

6. 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. Extinwted tax increment shared by the municipality and other participating taoing jurisdictions:

Amount of

Assessment Extimated 2016

Taxing Jurisdiction Per S100 Increment

City of Dallas 0.62600 $942,441

Deltas County 0.13371 $201,295

Total for all Jurisdictions 50.75971 $1,143,727

***Participation rates for City of Dallas and Dallas County are 80% and 55% respnchvety for lax years 2008- 2026.

B. The total amount of eslimeted tao increment to be billed for the 2016 lax year is $1,143,727. For the 2015 tao

year, increment in Ihe amount of $950,432 was received.

18