Harlingen Development Corporation City of Harlingen, Texas

Presented by: Humberto Zamora President Jim Springfield Vice-President Armando Elizarde Treasurer / Secretary Jim Denison Board Member Eddie Medrano Board Member

2007 EDC PROJECTS Estimated Participation Values Project Fisher $1, Project Falcon Bank $0.00 Project Harlingen Venture Two $3,000, Project Cardone $500, NNN Harrison Crossing (Walgreen’s - Starbuck’s - T-Sprint) $286, Project Mongolian Grill $12, Project Sony’s Fish Fry $26, Project ACT Call Center Pending Project South Texas Shrimp Processing $350, Penske Restructured Contract VBMC/RAHC Nutritional Research Project $500, Lowes - Gas Line Extension $18, Harlingen Sports Foundation $300, Mid Valley Door & Truss $200,000 Refinanced Via Novo Consultants $60, ITD Precision Metal Stamping $76, Airport - Project Valley Hangars $10, Webb Saw & Tool $119, Penn Aluminum $300, Project VIDA $250, Downtown Improvement District $40, Millsap/Shipley Consultants $120, TIF Consultant - Kline & Associates $30, United Launch Alliance Pending Negotiations Washington Consultant $120, Harlingen Chamber of Commerce $90, Hispanic Chamber of Commerce $60,000.00

Organizational Structural Entities Required for Growth Chapter 373. COMMUNITY DEVELOPMENT IN MUNICIPALITIES (1987) Chapter 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 AGREEMENT IMPACT ZONE (2001) IMPACT ZONE (2001) Chapter 379A. MUNICIPAL DEVELOPMENT CORPORATIONS (2001) Subchapter D. POWERS OF CORPORATION Subchapter D. POWERS OF CORPORATION Sec. 379A Programs Sec. 379A Programs

Organizational Structural Entities Required for Growth (Cont.) Chapter 380. MISCELLANEOUS PROVISION RELATING TO MUNICIPAL PLANNING AND DEVELOPMENT (1989/2005) Chapter 386. COMMERCIAL AND INDUSTRIAL DEVELOPMENT ZONES (2001) Chapter 431. MUNICIPAL AUTHORITY RELATING TO PARKING (1987) State Program.STATE OF TEXAS AFFORDABLE HOUSING CORPORATION (2005)

Chapter 373. COMMUNITY DEVELOPMENT IN MUNICIPALITIES

Chapter 373A. HOMESTEAD PRESERVATION DISTRICTS AND REINVESTMENT ZONES

Chapter 373A. HOMESTEAD PRESERVATION DISTRICTS AND REINVESTMENT ZONES Subchapter C HOMESTEAD LAND TRUST

Chapter 373A. HOMESTEAD PRESERVATION DISTRICTS AND REINVESTMENT ZONES Subchapter C HOMESTEAD LAND TRUST Possible Uses 1.Development of Community Buildings economic development. development. 2. Reinvesting 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 the abandoned canal properties which can be developed abandoned 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. NORTH AMERICAN FREE TRADE AGREEMENT IMPACT ZONE

Chapter 379. NORTH AMERICAN FREE TRADE AGREEMENT IMPACT ZONE Possible Uses 1. “F” Street Corridor 2. Downtown Improvement District Corridor 3. Stuart Place Road Corridor 4. North Loop 499 Corridor 5.South 77 Sunshine Corridor – Behind Su Clinica and the I.R.S. and the I.R.S.

Chapter 379. NORTH AMERICAN FREE TRADE AGREEMENT IMPACT ZONE

Chapter 379A. MUNICIPAL DEVELOPMENT CORPORATIONS (2001) Subchapter D. POWERS OF CORPORATION Sec. 379A Programs (1) Job training (2) Early childhood development (3) After-school programs (4) Funding to accredited postsecondary educational institutions (5) Promotion of literacy (6.A) Development of a skilled workforce (6.B) May develop or use land

Chapter 379A. MUNICIPAL DEVELOPMENT CORPORATIONS (2001) Subchapter D. POWERS OF CORPORATION Sec. 379A Programs Possible Uses 1. 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

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

Chapter 380 MISCELLANEOUS PROVISION RELATING TO MUNICIPAL PLANNING AND DEVELOPMENT (1989/2005) Possible Uses 1. Waters Edge Dining (Land Lease and encroachment.) A. City Lake Cafe B. Dixieland Lake Restaurant 2. Innovative Sales Tax Credit Project A. New Construction materials B. Remodeling Construction materials 3. Commerce Center Park

Chapter 386. COMMERCIAL AND INDUSTRIAL DEVELOPMENT ZONES

Chapter 386. COMMERCIAL AND INDUSTRIAL DEVELOPMENT ZONES Possible Uses Establishing of a Biomedical Commerce Park on land available east of VBMC

TITLE 14. PARKING AND TRANSPORTATION Chapter 431. MUNICIPAL AUTHORITY RELATING TO PARKING

TITLE 14. PARKING AND TRANSPORTATION Chapter 431. MUNICIPAL AUTHORITY RELATING TO PARKING Possible Uses 1. Parking facility for 250 new employees working for the ACT Call Center working for the ACT Call Center 2. Parking facilities for all new business developments requiring assistance developments requiring assistance

STATE OF TEXAS PROGRAM Texas State Affordable Housing Corporations (2005) Single Family Housing 1005 Congress Avenue, Suite 500 Austin, Texas B. Home for Texas Heroes Program 6.15%Interest Rate 797,756 Money Available 2007 B. Homes for Professional Educators Program 6.60%Interest Rate 19,266,254Money Available Both programs offer 30 year fixed rate mortgage Both 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 PROGRAM Program Eligibility for Heroes and Educators Program Eligibility for Heroes and Educators Heroes:Educators: Fire Fighter Classroom Teacher Fire Fighter Classroom Teacher EMS Personnel Teacher’s Aid EMS Personnel Teacher’s Aid Peace Officer School Librarian Peace Officer School Librarian Corrections Officer School Nurse Corrections Officer School Nurse Juvenile Corrections Officer School Counselor Juvenile Corrections Officer School Counselor County Jailer Allied Health Professional County Jailer Allied Health Professional Public Security Officer Nursing Professional Public Security Officer Nursing Professional Working in State of Texas Working in State of Texas Working in State of Texas Working in State of Texas

Buyers / Future Taxpayers Affordable Housing Incentives Program Buyers Incentives Plan Per Home Economic Impact 1 New Home - Appraised Value for - Harlingen’s Median Home Value Property Taxes: City Sales Taxes: Revenue from building 1-New Home Cameron Co City Harlingen Harlingen ISD South Texas ISD COMBINED RATE COMBINED TAXES Construction Materials Construction Wages Wages Spent in Town City Sales Texas Values $ 110,000 Tax Rate PER HOME $ 55,000 $ 30,000 60% $ 487/Home Taxes $100/Value % 2.00% $18, % Taxes $ 383 $ 649 $ 1,566 $ 43 ______ $ 2,642 $ 4,537 $ 1,100 $ 360 $ 487 $ 1,947 Year1 $0 Year 2 $649 Year 3 $1,298 Year 4 $1,947 Year 5 $2,596 City will not be losing its property tax base, only 2% sales and use tax associated with the actual construction project. EDC 5 YEARS HOUSING PLAN AND MODEL 100 New Homes Gross Sales at EDC Investment / 100-Homes City-Construction 2% Sales Taxes City-Labor 2% Sales Taxes Total Public Investment %City Investment on 100 Homes and $11,000,000 New Tax Base Return on Public Investment Homes / Year 100 $ 48,700 $ 110,000 $ 6,000 $ 194, % $110, Year 1 $11,000,000 $194, Year 2 $11,000,000 $194, Year 3 $11,000,000 $194, Year 4 $11,000,000 $194, Year 5 $11,000,000 $194,700 Total 5 Years 500 Homes $55,000,000 $ 243,500 $ 550,000 $ 180,000 $ 973, % EDC MATCHING FUNDSS Total Taxes Abatement Harlingen Invested $ 973,500 and Received $ 55,000,000 in Housing Value Harlingen’s Tax Base Increase is Now $ 1,321,000 per year / perceptual

Harlingen Development Corporation monthly meetings are on the last Tuesday of the month at 4 p.m. at the Harlingen City Hall. The general public is invited to attend. Thank You