HomeMy WebLinkAboutContract 33334 CITY SECRETARY ot
CONTRACT NO.
AGREEMENT TO PARTICIPATE IN
TAX INCREMENT REINVESTMENT ZONE NUMBER SIX,
CITY OF FORT WORTH, TEXAS
(RIVERFRONT TIF)
This AGREEMENT TO PARTICIPATE IN TAX INCREMENT
REINVESTMENT ZONE NUMBER SIX, CITY OF FORT WORTH, TEXAS
("Agreement") is entered into by and between the CITY OF FORT WORTH, TEXAS
(the "City") and TARRANT COUNTY HOSPITAL DISTRICT, TEXAS (the
"TCHD").
The City and the TCHD hereby agree that the following statements are true and
correct and constitute the basis upon which the City and the TCHD have entered into this
Agreement:
A. On November 12, 2002 the City Council of the City ("City Council")
adopted City Ordinance No. 15325 designating certain real property in the north
downtown area of the City as Tax Increment Reinvestment Zone Number Six, City of
Fort Worth, Texas, (the "TIF District"). The TIF District is informally known as the
"Riverfront TIF". Ordinance No. 15325 is hereby incorporated by reference for all
purposes.
B. Designation of the TIF District will cause development of property in and
around the TIF District to occur that would not occur otherwise in the foreseeable future.
Until RadioShack Corporation ("RadioShack") located its new corporate campus in
downtown Fort Worth, a parking lot within a floodplain and an abandoned public housing
complex of approximately twenty-four (24) acres substantially impaired and arrested the
sound growth of the City. Under the City's Economic Development Program Agreement
with RadioShack, which served as the catalyst in RadioShack's decision to locate its
corporate campus in downtown Fort Worth, the City agreed to use reasonable efforts to
create a TIF District in this area in order to pay for public projects necessary for and
complimentary to construction of RadioShack's corporate campus. It is anticipated that
other private development in the TIF District will follow. This overall development will
result in increased tax revenues and other public benefits for both the City and the TCHD.
C. Pursuant to Section 311.013(f) of the Texas Tax Code, the TCHD is not
required to pay any tax increment into the tax increment fund of the TIF District unless it
enters into an agreement to do so with the City. The TCHD wishes to enter into such an
agreement with the City
NOW, THEREFORE, for and in consideration of the conditions set forth herein,
the sufficiency of which is hereby acknowledged, the City and the TCHD do hereby
contract, covenant and agree as follows:
TCHD Participation Agreement Vr3�+�G�l� Jv �V 1NJ
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1. INCORPORATION OF RECITALS.
The parties hereby agree that the recitals set forth above are true and correct and
form the basis upon which they have entered into this Agreement.
2. DEFINITIONS.
In addition to any terms defined in the body of this Agreement, the following
terms shall have the definitions ascribed to them as follows:
Act means the Tax Increment Financing Act, as amended and as codified as
Chapter 311 of the Texas Tax Code.
Captured Appraised Value in a given year means the total appraised value of all
real property taxable by the TCHD and located in the TIF District for that year less the
Tax Increment Base.
Project Plan means the project plan for the development and/or redevelopment of
the TIF District, as adopted by the TIF Board and approved by the City Council of the
City.
Tax Increment in a given year means the amount of property taxes levied and
collected by the TCHD for that year on the Captured Appraised Value of real property
taxable by the TCHD and located in the TIF District.
Tax Increment Base means the total appraised value as of January 1, 2002 of all
real property taxable by the TCHD and located in the TIF District.
Tax Increment Fund means that fund created by the City pursuant to Section
311.014 of the Act and Section 6 of City Ordinance No. 15325, which will be maintained
by the City, into which all revenues of the TIF District will be deposited, including
deposits of Tax Increment by the City and by other taxing units with jurisdiction over real
property in the TIF District, including the TCHD.
TIF Board means the governing board of directors of the TIF District appointed
in accordance with Section 311.009 of the Act and Section 3 of City Ordinance No.
15325.
3. DEPOSIT OF TAX INCREMENT.
TCHD hereby e to deposit each year during the term of the TIF District,
beginning with the tax year, one hundred percent (100%) of the TCHD's Tax
Increment into the Tax Increment Fund. Such deposits shall be made in accordance with
TCHD Participation Agreement "
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the City's standard administrative procedures relative to all tax increment reinvestment
zones administered by the City, but only following receipt of a bill from the City that
outlines the City's calculation of the amount of the deposit that is required for that year.
The TCHD understands and agrees that the TIF Board may use revenue in the Tax
Increment Fund for any lawful purpose, as restricted by the Act and the Project Plan.
4. LIMITATIONS ON TAX INCREMENT DEPOSITS AND USE OF FUNDS.
This Agreement is based on the following conditions, and the City agrees and
acknowledges the TCHD's right to enforce the conditions contained herein by injunction
or any other lawful means in the event one or more of such conditions are not satisfied.
4.1. Certain TIF District Proiect Costs Excluded.
The Tax Increment deposited into the Tax Increment Fund by the TCHD
shall be used to pay project costs for infrastructure improvements or other public
improvements as set forth and identified in the Project Plan attached hereto as
Exhibit "A", and shall not include any costs for administration, overhead, or
management of the TIF District, or costs for municipal or educational facilities
owned by a school district. If the Project Plan is amended, the Tax Increment
deposited into the Tax Increment Fund by the TCHD may not be used for any
infrastructure improvements or other public improvements not addressed by the
original Project Plan unless the amended Project Plan is approved by the
governing body of the TCHD as an amendment to this Agreement.
4.2. TIF District Expansion or Reduction.
As defined, the TIF District shall include real properties located within the
boundaries as described in Ordinance No. 16002. If the TIF District is expanded,
the TCHD is not required to deposit into the Tax Increment Fund any Tax
Increment generated from properties in the expanded area unless participation in
the expanded boundary area is approved by the governing body of the TCHD as
an amendment to this Agreement. Additionally, the Tax Increment deposited into
the Tax Increment Fund by the TCHD may not be used for any permissible
project costs in any portion of the expanded area of the TIF District unless
approved by the governing body of the TCHD as an amendment to this
Agreement.
Furthermore, if the TIF District is expanded or reduced without the prior
consent of the TCHD, then the TCHD may choose to cease its participation in the
TIF District as described in Section 3 by providing thirty (30) days written notice
to the City.
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TCHD Participation Agreement u
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5. TERM.
This Agreement shall take effect on the date as of which both parties have executed
it and shall expire upon expiration or termination of the TIF District, which currently is the
earlier of(i) the date as of which the TCHD has deposited the TCHD Tax Increment Cap
Amount into the Tax Increment Fund; (ii) November 11, 2036 or an earlier termination
date designated by ordinance subsequently adopted by the City Council of the City or (iii)
the date on which all project costs of the TIF District, including, but not limited to, tax
increment bonds and interest on those bonds, have been paid or otherwise satisfied in full.
6. FINAL ACCOUNTING.
After all project costs of the TIF District have been paid or at the time of the
expiration of this Agreement, the City shall prepare and provide the TCHD with a final
accounting of the funds deposited to and disbursed from the Tax Increment Fund. Any
funds remaining in the Tax Increment Fund following the final accounting by the City
shall be paid to those taxing units participating in the TIF District in proportion to each
taxing unit's share of the total amount of Tax Increment deposited into the Tax Increment
Fund.
7. RESPONSIBILITY FOR ACTS.
The City and the TCHD shall each be responsible for the sole negligent acts of their
officers, agents, employees or separate contractors. In the event of joint and concurrent
negligence of both the City and the TCHD, responsibility, if any, shall be apportioned
comparatively with the laws of the State of Texas,with the understanding that neither party
waives any governmental powers or immunities or any other defenses available to each
individually.
8. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the
following, or such other party or address as either party may subsequently designate in
writing,by certified mail,postage prepaid, or by hand delivery:
City: Tarrant County Hospital District:
City of Fort Worth Tarrant County Hospital District
Attn: City Manager Attn: Hospital Administrator
1000 Throckmorton 1500 S. Main Street
Fort Worth,TX 76102 Fort Worth, Texas 76110
TCHD Participation Agreement � ���s
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with copies to:
the City Attorney and
Economic/Community Development
Director at the same address
9. NO WAIVER.
The failure of either party to insist upon the performance of any term or provision
of this Agreement or to exercise any right granted hereunder shall not constitute a waiver
of that party's right to insist upon appropriate performance or to assert any such right on
any future occasion.
10. VENUE AND JURISDICTION.
If any action, whether real or asserted, at law or in equity, arises on the basis of
any provision of this Agreement, venue for such action shall lie in state courts located in
Tarrant County, Texas or the United States District Court for the Northern District of
Texas—Fort Worth Division. This Agreement shall be construed in accordance with the
laws of the State of Texas.
11. NO THIRD PARTY RIGHTS.
The provisions and conditions of this Agreement are solely for the benefit of the
City and the TCHD and are not intended to create any rights, contractual or otherwise, to
any other person or entity.
12. FORCE MAJEURE.
The parties shall exercise every reasonable effort to meet their respective
obligations as set forth in this Agreement, but shall not be held liable for any delay in or
omission of performance due to force majeure or other causes beyond their reasonable
control, including, but not limited to, compliance with any government law, ordinance or
regulation, acts of God, acts of omission, fires, strikes, lockouts, national disasters, wars,
riots, material or labor restrictions, transportation problems and/or any other cause
beyond the reasonable control of either party.
TCHD Participation Agreement
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13. INTERPRETATION.
In the event of any dispute over the meaning or application of any provision of
this Agreement, this Agreement shall be interpreted fairly and reasonably, and neither
more strongly for or against any party, regardless of the actual drafter of this Agreement.
14. CAPTIONS.
Captions and headings used in this Agreement are for reference purposes only and
shall not be deemed a part of this Agreement.
15. ENTIRETY OF AGREEMENT.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement
between the City and the TCHD as to the matters contained herein. Any prior or
contemporaneous oral or written agreement is hereby declared null and void to the extent
in conflict with any provision of this Agreement. Notwithstanding anything to the
contrary herein, this Agreement shall not be amended unless executed in writing by both
parties and approved by the City Council of the City in an open meeting held in
accordance with Chapter 551 of the Texas Government Code.
16. COUNTERPARTS.
This Agreement may be executed in multiple counterparts, each of which shall be
considered an original, but all of which shall constitute one instrument.
EXECUTED as of the later date below:
CITY OF FORT WORTH,TEXAS: TARRANT COUNTY HOSPITAL
DISTRICT:
By: '�'-' By:
Dale Fisseler Erma Johnson-Hadley
Assistant City Manager Chair
Date: 3- Date:
TCHD Participation Agreement
re:Riverfront TIF
Page
ATTEST: ATTEST:
By: By: Cp-e,— !�:L
Marty Hendrix Name: DEC- -I cs-t
City Secretary Title: 15 A L i a s T-,
APPROVED AS TO FORM/LEGALITY: APPROVED AS TO FORM*:
1'
By: B :
L.eav,K Cu�Zv ,,
,� ,� 41h6�pson
Assistant City Attorney Assistant District Attorney
M&C: C ala
*By law, the District Attorney's Office may only advise or approve contracts or legal documents on behalf of its clients.
It may not advise or approve a contract or legal document on behalf of other parties. Our view of this document was
conducted solei-v from the legal perspective of our client. Our approval of this document was offered solely for the
benefit of our client. Other parties should not rely on this approval and should seek review and approval by their own
respective attorney(s).
TCHD Participation Agreement FIIM! Phil Coli
re: Riverfront TIF
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 212812006
DATE: Tuesday, February 28, 2006
LOG NAME: 17RIVERFRONT#6A REFERENCE NO.: C-21324
SUBJECT:
Authorize Execution of an Agreement with Tarrant County Hospital District for Participation in Tax
Increment Reinvestment Zone Number Six, City of Fort Worth, Texas (Riverfront TIF)
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute an agreement with Tarrant
County Hospital District for participation in Tax Increment Reinvestment Zone Number Six, City of Fort
Worth, Texas (Riverfront TIF).
DISCUSSION:
On November 12, 2002, (M&C G-13800) the City Council adopted Ordinance No. 15325 designating the
Riverfront TIF, which will expire on December 31, 2036. Until RadioShack Corporation located its new
corporate campus in downtown Fort Worth, a parking lot within a flood plan and an abandoned public
housing complex of approximately 24 acres substantially impaired and arrested the sound growth of the
City. It is anticipated that other private development in the TIF District will follow resulting in increased tax
revenues and other public benefits.
Under state law, a taxing unit is not required to contribute tax increment to a TIF unless that taxing unit
enters into an agreement to do so with the municipality that has designated the TIF. Under the proposed
agreement, the Tarrant County Hospital District taxing unit will contribute tax increment generated by
property located within the Riverfront TIF to the tax increment fund at 100% beginning with the 2005 tax
year.
Council approved participation agreements for other taxing units below on December 20, 2005, (M&C
C-21221):
• Tarrant County will contribute 100% annually through the term of the TIF,
• Tarrant County College District will contribute 80% annually through the term of the TIF; and
• Tarrant Regional Water District will contribute 100% annually through the term of the TIF.
Pursuant to Ordinance No. 15325, the City of Fort Worth will not contribute to the TIF. Revenue in the tax
increment fund may be used for any lawful project cost of the Riverfront TIF, as restricted by state law and
the project plan adopted by the TIF's board of directors and approved by the City Council.
The Riverfront TIF is located in COUNCIL DISTRICTS 2 and 9.
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 4/19/2006
Page 2 of 2
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this transaction will have no effect on City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by� Dale Fisseler (6140)
Originating Department Head: Tom Higgins (6103)
Additional Information Contact: Keisha Ward (6376)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 4/19/2006