HomeMy WebLinkAboutContract 37116 (2)AGREEMENT TO PARTICIPATE IN
TAX INCREMENT REINVESTMENT ZONE NUMBER NINE,
CITY OF FORT WORTH, TEXAS
(TRINITY RIVER VISION TIF)
This AGREEMENT TO PARTICIPATE IN TAX INCREMENT
REINVESTMENT ZONE NUMBER NINE, 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 (the "Hospital
District").
The City and the Hospital District hereby agree that the following statements are
true and correct and constitute the basis upon which the City and the Hospital District
have entered into this Agreement:
A. On December 9, 2003, the City Council of the City ("City Council")
adopted City Ordinance No. 15797 designating certain real property located north and
west of the downtown Central Business District and in the vicinity of the Trinity River as
Tax Increment Reinvestment Zone Number Nine, City of Fort Worth, Texas, (the "TIF
District"). The TIF District is informally known as the "Trinity River Vision TIF."
Ordinance No. 15797 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.
As a result of designation of the_ TIF District, it is intended that a bypass channel shall be
created for the Trinity River to reduce central city flooding threats. It is anticipated that
other complementary 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 Hospital District.
C. Pursuant to Section 311.013(f) of the Texas Tax Code, the Hospital
District 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 Hospital District
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 Hospital District do
hereby contract, covenant and agree as follows:
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. � , ,,�l ,�; � ,,,�-,, J �'�
Hospital District Participation Agreement
re: Trinity River Vision TIF
Page 1
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 Hospital District 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 Hospital District for that year on the Captured Appraised Value of real
property taxable by the Hospital District and located in the TIF District.
Tax Increment Base means the total appraised value as of January 1, 2003 of all
real property taxable by the Hospital District 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 o of City Ordinance No. 15797, 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 Hospital District.
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.
15797.
3. DEPOSIT AND USE OF TAX INCREMENT.
The Hospital District hereby agrees to deposit each year during the term of the TIF
District, beginning with the 2007 tax year, eighty percent (80%) of the Hospital District's
Tax Increment into the Tax Increment Fund. Such deposits shall be made in accordance
with 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.
Hospital District Participation Agreement
re: Trinity River Vision TIF
Page 2
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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 Hospital District'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 Amendment to TIF Ordinance.
The TIF Ordinance designates the boundaries, the eligible real properties
for the calculation of Tax Increment for the TIF District and the specific
participation level of the City. All amendments to the TIF Ordinance shall be
approved by the TIF Board prior to approval by the City Council. If the City
Council approves an amendment to the TIF Ordinance different from the
amendment approved by the TIF Board, the Hospital District shall suspend
payment into the TIF Fund as described in Section 3 until the amendment is
approved by the governing body of the Hospital District.
4.2. Certain TIF District Project Costs Excluded.
The Tax Increment deposited into the Tax Increment Fund by the Hospital
District shall be used to pay project costs for infrastructure improvements or other
public improvements as set forth and identified in the Project Plan, 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 by approval of the TIF Board and such amendment
serves only to (i) redirect funds from one project cost category to another project
cost category already provided in the Project Plan and does not increase the
overall total project costs of the Project Plan, or (ii) provide for the addition of the
financing costs for those projects already provided in the Project Plan, than such
amendment will not require the approval of the governing body of the Hospital
District. If the Project Plan is amended by the TIF Board to (i) add any projects
not outlined in the current Project Plan or (ii) increase the overall total projects
costs except as provided above, and such amendment is approved by the City
Council, the Hospital District shall suspend payment into the TIF Fund as
described in Section 3 until the amendment is approved by the governing body of
the Hospital District as an amendment to this Agreement. Subject to the
foregoing, if the City Council approves a Project Plan, and any amendments
thereto, different from the Project Plan and any amendments approved by the TIF
Board or makes changes to the Project Plan approved by the TIF Board, the
Hospital District shall suspend payment into the TIF Fund as described in Section
3 until the amendment or changes are approved by the governing body of the
Hospital District.
Hospital District Participation Agreement
re: Trinity River Vision TIF
Page 3
4.3. TIF District Expansion.
As defined, the TIF District shall include real properties located within the
boundaries as described in Ordinance No. 15797. If the TIF District is expanded,
the Tax Increment deposited into the Tax Increment Fund by the Hospital District
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 Hospital
District as an amendment to this Agreement. Additionally, the Tax Increment
deposited into the Tax Increment Fund by the Hospital District 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 Hospital District as an
amendment to this Agreement.
4.4. TIF Board Membership
During the term of the TIF District, the TIF Board shall consist of at least
three (3) Tarrant County representatives, (3) Tarrant Regional Water District
representatives, one (1) Hospital District representative, one (1) Tarrant County
College District representative and one (1) Fort Worth Independent School
District representative. The governing body of Tarrant County, Tarrant Regional
Water District, Tarrant County College and Fort Worth Independent School
District shall provide the names and addresses of their designated
representatives) to the City Council of the City for appointment to the TIF Board.
The City Council of the City shall appoint the designated representative(s) to the
IF Board. If the designated representatives are not appointed to the TIF Board
or the TIF Board does not consists of the number of representatives stated above,
the Hospital District shall suspend payment into the TIF Fund as described in
Section 3 until such time that the requirements above are satisfied.
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) December 31, 2024 or an earlier termination date designated by ordinance
subsequently adopted by the City Council of the City or (ii) 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. TIF FUND ACCOUNTING.
No later than July 1 of each year following execution of this Agreement, the City
shall provide the Hospital District with an annual accounting of the funds deposited to
and disbursed from the Tax Increment Fund, including accrued interest. After all project
costs of the TIF District have been paid or at the time of the expiration of this Agreement,
Hospital District Participation Agreement
re: Trinity River Vision TIF
Page 4
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any funds remaining in the Tax Increment Fund following the final annual 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 Hospital District 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 Hospital District, 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:
City of Fort Worth
Attn: City Manager
1000 Throckmorton
Fort Worth, TX 76102
with copies to:
the City Attorney and
Economic/Community Development
Director at the same address
9. NO WAIVER.
Hospital District:
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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.
Hospital District Participation Agreement
re: Trinity River Vision TIF
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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 Hospital District 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.
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 Hospital District 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
Hospital District Participation Agreement
re: Trinity River Vision TIF �;•�
Page 6
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 maybe 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:
By:
LUlli
Assistant City Manager
Date: S�Z2 �D �
ATTEST:
By:
Marty Hendrix
City Secretary
APPROVED AS TO FORM/LEGALITY:
By:
Assistant City Attorney
M&C:
Hospital District Participation Agreement
re: Trinity River Vision TIF
Page 7
TARRANT COUNTY HOSPITAL
DISTRICT:
By:
Name: sr�✓F Mov� Go�"lE,ey
Chairman
Tarrant County Hospital District
Board of Managers
Date: )1 30 L 0 \,
ATTEST:
Title: �� o a �-� �.� � ►S `���