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HomeMy WebLinkAboutContract 36028-A1 (2) CITY SECRETARY CONTRACT NO, ,$ Oa S- AMENDMENT NO. 1 TO AGREEMENT TO PARTICIPATE IN TAX INCREMENT REINVESTMENT ZONE NUMBER EIGHT, CITY OF FORT WORTH,TEXAS (LANCASTER CORRIDOR TIF) This AMENDMENT NO. 1 TO AGREEMENT TO PARTICIPATE IN TAX INCREMENT REINVESTMENT ZONE NUMBER EIGHT, CITY OF FORT WORTH, TEXAS ("Amendment") is entered into by and between the CITY OF FORT WORTH, TEXAS (the "City") and TARRANT COUNTY, TEXAS (the "County"). The City and the County hereby agree that the following statements are true and correct and constitute the basis upon which the City and the County have entered into this Amendment: A. On December 9, 2003 the City Council of the City ("City Council") adopted City Ordinance No. 15775 designating certain real property in the southern downtown area of the City as Tax Increment Reinvestment Zone Number Eight, City of Fort Worth, Texas, (the "TIF District"). The TIF District is informally known as the "Lancaster Corridor TIF". B. On or about October 23, 2007, the City and the County entered into an agreement under which the County agreed to deposit eighty percent (80%) of the County's Tax Increment into the TIF District's Tax Increment Fund ("Participation Agreement"), as specifically provided in that Participation Agreement. The Participation Agreement is a public document on file in the City Secretary's Office as City Secretary Contract No. 36028. C. The Participation Agreement incorporates the TIF District's project plan for the development and/or redevelopment, as adopted by the TIF's Board of Directors (the "Board") on January 22, 2004 and approved by the City Council on January 27, 2004 pursuant to Ordinance No. 15844, as subsequently amended by the Board on February 24, 2005 pursuant to Board Resolution No. 2005-02 and on June 29, 2006 pursuant to Board Resolution No. 2006-04, as approved by the City Council on March 29, 2005 pursuant to Ordinance No. 16343-03-2005 and on August 15, 2006 pursuant to Ordinance No. 17100-08-2006, respectively (the "Project Plan"). D. Section 4.2 of the Participation Agreement specifies that if the Project Plan is further amended, the County shall have the right to suspend deposits of tax increment into the TIF District's Tax Increment Fund until the amendment is approved by the governing body of the County as an amendment to the Participation Agreement. E. On December 5, 2007, the Plan was further amended by the Board pursuant to Board Resolution No. 2007-01, as approved b e City Council on January Page 1 Amendment No. 1 to Lancaster Corridor TIF Participation Agreement OFFICIAL � Between the City of Foil Worth.Texas and Tarrant County.Texas CtTY SECRETARY "FT.{fltORTFt,TX 29, 2008 pursuant to Ordinance No. 17964-01-008. On June 23, 2011, the Plan was further amended by the Board pursuant to Board Resolution No. 2011-01, as approved by the City Council on August 9, 2011 pursuant to Ordinance No. 19835-08-2011. The Project Plan, as so amended, is referred to hereinafter as the "Amended Project Plan". F. The governing body of the County has approved the Amended Project Plan. Accordingly, the City and the governing body of the County wish to amend the Participation Agreement to incorporate the Amended Project Plan. NOW, THEREFORE, for and in consideration of the and conditions set forth herein, the sufficiency of which is hereby acknowledged, the City and the County do hereby contract, covenant and agree as follows: 1. In order for the Participation Agreement to incorporate the Amended Project Plan, Section 2 (Definitions) of the Participation Agreement is hereby amended to provide a new definition for the term "Project Plan", as follows: Proiect Plan means the project plan for the development and/or redevelopment of the TIF District, which has been adopted by the TIF Board and approved by the City Council of the City, which is attached hereto as Exhibit"B-1". Exhibit "13-1" is hereby made a part of this Amendment and the Agreement for all purposes. 2. All other provisions and conditions of the Participation Agreement shall remain in full force and effect. 3. Capitalized teens used but not identified in this Amendment shall have the same meanings assigned to them in the Participation Agreement. 4. This Amendment contains the final written expression of the City and the County with respect to the subject matter hereof. This Amendment 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: Page 2 Amendment No. I to Lancaster Corridor TIF Participation Agreement Between the City,of Fort Worth,Texas and Tarrant County,Texas CITY OF FORT WORTH,TEXAS: TARRANT COUNTY, TEXAS: By: UN ' By: U)ZL usa Alanis B. Glen Whitley j Assistant City Manager �.apWut'�Ln County Judge n Xy ©100 °°�C°� Date: �ti t l ,��� �+ te: kz ) v d ` 0 l� !� ATTEST: �f°o * TEST: Ay �000000°°° gy By: By: Lbbu (21 Marty Hendrix Name:OCGbe 0tdOY1 City Secretary Deputy County Clerk APPROVED AS TO FORM/LEGALITY: APPROVED T FO By: fiA�" By: Peter Vaky Ray Rik Deputy City Attorney AssistanLDistrict Attorney M&C: none required "Bv law.the District.4nornev'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 solely 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). OFFICIAL RECORD CITY SECRETARY FT. (NORTH, TX Page 3 Amendment No. 1 to Lancaster Corridor TIF Participation Agreement Between the City of Fort Worth,Texas and Tarrant Couno,.Texas Exhibit"B-1" Financing Plan and Project Plan for Tax Increment Reinvestment Zone Number Eight, City of Fort Worth, Texas (Lancaster Corridor TIF) June 23, 2011 1 Table of Contents I. Description of the Proposed Zone (Pages 3-5) A. Map B. Legal Description II. Economic Impact (Pages 6-10) A. Necessary Public/Private Partnerships B. Catalyst Redevelopment Projects C. Targeted Redevelopment Zones D. Anticipated Economic Activity III. Tax Increment Projections (Page 11) IV. Project Costs and Financing (Pages 12-14) V. Term and Governance (Pages 15-17) 2 I. Description of the Proposed Zone 3 A. TIF Map South ROW West ROW line of 3d St. line of Burnett North ROW -- line of 7'h St. West ROW line of / Henderson - North ROW line of 7h St. > .r r � '''`55 `�"-.-" ' S -gam' `•5 �5 ` R» i t. East OW �" � �'',, �� `. '`� . � line 1 � \ aLT rTn F� 6J LI LANCASTER North ROW North ROW line line of I-30 of I-30 exit at Henderson St. 4 B. Legal Description of the TIF District Beginning at a point of the intersection of a projection of the west ROW line of Henderson St and the south ROW line of 3`d St., thence Northeasterly along the south ROW line of 3`d St. to a point where said line intersects with the west ROW line of Burnett St., thence Southeasterly along the west ROW of Burnett St. to a point where said line intersects the north ROW line of 71h St., thence Easterly along the north ROW line of 7th St. to a point where said line intersects the north ROW line of 71h St., thence Northeasterly along the north ROW line of 7th St. to a point where said line intersects the east ROW line of Calhoun St., thence Southeasterly along the east ROW line of Calhoun St. to a point where said line intersects the north ROW line of Interstate 30, thence Westerly along the north ROW line to a point where said line intersects the north ROW line of the Interstate 30 exit at Henderson St., thence Westerly along the north ROW line of the Interstate 30 exit at Henderson St. to a point where said line intersects the west ROW line of Henderson, thence Northward along the west ROW line of Henderson St. to a point where said line intersects with the south ROW line of 3rd St., which is the point of beginning. Map and Boundary Description prepared by Gideon Toal, Inc. 5 II. Economic Impact 6 A. Necessary Public/Private Partnerships • Lancaster Corridor Will Require Public/Private Partnerships to Develop in a Timely Manner The demolition of the former I-30 overhead has repositioned the Lancaster Ave as one of the major urban parkways in Fort Worth and Tarrant County and as one of the primary gateways to Downtown Fort Worth and the Medical District. A repositioned Lancaster Avenue opens the potential of significant redevelopment in the Lancaster Corridor,however the redevelopment of the Lancaster Corridor has many challenges and can be significantly accelerated with the prudent use of public/private partnerships. Several of the contemplated redevelopment projects in the area will serve as a catalyst for further development in the area. The funded Lancaster Avenue roadway and streetscape will be an additional catalyst for further development. LANCASTER STREETSCAPE } 4 M . . to . v , I - r B. Catalyst Redevelopment Projects Other projects in the redevelopment corridor will have spin-off economic benefits that will facilitate further private investment. FORT WORTH CONVENTION CENTER RAMADA HOTEL KIRK&AL54IATESW7 r i �:-1' 11! i d ���' y. *}� `4',•� ,.. {;rl iil,1�i! i=t#"}� _ ' =sAI G_ � r )I Several significant projects, including local and national historic landmarks are poised to redevelop generating new taxes for the local taxing entities and will create economic activity where it has been dormant for many years. T&P TERMINAL T&P WAREHOUSE US POST -- OFFICE z - 8 i 1 C. Targeted Redevelopment Zones It is anticipated that redevelopment will occur throughout the Lancaster Corridor with the use of appropriate public/private partnership incentives. a w sn�sr �� ,• 4 a 'b n Ji 1 Pona — 1b a la opm SPNO — 9 D. Anticipated Economic Activity Attachment A details construction that is projected to occur over the next twenty years. By the end of 2005, it is estimated that 108,123 square feet of new property developments will become available within the TIF boundary. Likewise, by 2023, it is estimated that 4,079,999 square feet of new property development will occur within the TIF boundary. 10 III. Tax Increment Projections Attachment B projects the revenue for the TIF over its 21 year life, assuming a 1.5% annual appreciation of the property within the boundary of the TIF. Additionally, the projects assume new property value resulting from development occurring over the next 21 years. In total, the TIF is projected to have revenue of around $54 million during its lifetime, as shown in Attachment C. ll IV. Project Costs and Financing The TIF District anticipates the capture of increment from the new development outlined in Attachment A and utilizing those additional funds to leverage selective catalyst projects in the Lancaster Corridor. This Project Plan includes the following projects. These project costs are eligible for TIF funding: 1. T&P Terminal Building: initial costs of$2.8 million in net present value terms (2003 dollars) for the redevelopment of the T&P Terminal Building (the "T&P Terminal Redevelopment Project"). Project costs for the T&P Terminal Redevelopment Project would include: ■ Historic Facade Easement Lease ■ Facade and Site Work ■ Professional Service Costs ■ Improvements to the public right-of-way for landscaping and pedestrian connections ■ Environmental Remediation ■ City Fee Support 2. Public Infrastructure Associated with Convention Center Hotel Project: construction and installation of public infrastructure, including street improvements, utility relocations, parking improvements and landscaping of public areas on and adjacent to the two (2) City blocks located on the west side of Houston Street known as Blocks 7 and 8, Tarrant County Convention Center Addition, on which construction by Omni Hotels, Inc. of a hotel to support the Fort Worth Convention Center and various other related improvements, including a parking garage, is desired (the "Convention Center Hotel Development Project"). Such public infrastructure would be paid for or reimbursed from tax increment remaining after satisfaction of any previously-approved contractual commitments in any given year made by the TIF District's board of directors, subject to any restrictions specifically imposed by the participating taxing jurisdictions. 3. Management and Administration Costs: The TIF District's board of directors is authorized to expend up to 5% of annual TIF revenues for management and administrative purposes, which allocation shall have priority over any other TIF project. 12 4. T&P Warehouse: up to $9 million for assistance with public infrastructure costs associated with the redevelopment of the T&P Warehouse (the "T&P Warehouse Redevelopment Project"), payable as a reimbursement following completion. Project costs for the T&P Warehouse Redevelopment Project would include: ■ Environmental remediation and demolition ■ Facade improvements ■ Public streetscape/construction and relocation of utilities ■ Site work on or adjacent to the T&P Warehouse Property ■ Clearing and grading of the T&P Warehouse Property ■ Hnrdscape and landscape improvements ■ Roof repairs and stabilization of the structure on the roof as necessary to preserve the historic facade of the T&P Warehouse ■ Professional fees directly related to approved project costs ■ Costs of constructing a public plaza ■ Administrative expenses (third party studies, reports, historical review and legal fees directly related to the project costs) ■ Reimbursement of City tap and impact fees ■ Interest on any unpaid balance of the reimbursement. 5. Public Infrastructure Associated with Lancaster Avenue Redevelopment: construction and installation of public infrastructure, including street improvements, utility relocations, parking improvements and landscaping of public areas on and adjacent to all portions of Lancaster Avenue that are within the TIF District. Such public infrastructure would be paid for or reimbursed from tax increment remaining after satisfaction of any previously approved contractual commitments in any given year made by the TIF District's board of directors, subject to any restrictions specifically imposed by the participating taxing jurisdictions. 6. Public Art Associated with T&P Terminal Building: design, fabrication and installation of T&P Terminal Waiting Room Commemoration Project. Such public infrastructure would be paid for as subsequently determined by the TIF District's board of directors, subject to any restrictions specifically imposed by the participating taxing jurisdictions. 13 7. Support of Mixed-Use Residential Development in Designated Zones: Allows the TIF to support development of mixed-use developments at specific sites requiring streetscape improvements and/or parking structures within the following zones, as referenced and depicted in Attachment D: ■ Area blocks bounded to the north by 7'h Street, to the south by 8tn Street, to the east by Main Street, and to the west by Houston Street (D 1); ■ Area blocks bounded to the north by 7'h Street, to the south by 8th Street, to the east by Calhoun Street, and to the west by Commerce Street (D2); ■ Area blocks bounded to the north by 9th Street, to the south by 10" Street, to the east by Calhoun Street, and to the west by Commerce Street (D3); ■ Area blocks bounded to the north by 14'h Street, to the south by Lancaster Avenue, to the east by Commerce Street, and to the west by Houston Street (D4); and ■ Area blocks bounded to the north by 13th Street, to the south by Lancaster Avenue, to the east by Throckmorton Street, and to the west by Burnett Street (D5). Any rental residential development, including the residential portion of a mixed-use development, must have a minimum of 15 percent of all units that are quality, accessible, and set aside for low-to-moderate income tenants in order to be eligible to receive TIF support. Any additional TIF Project costs would be subject to review and approval by the participating taxing jurisdictions. Projects that could be subject to additional TIF funding, but subject to review and approval by the participating taxing entities would be the redevelopment of the U.S. Post Office, including street, utility, and landscaping improvements, parking, and facade preservation. 14 V. Boundaries, Term and Governance Boundaries • The boundaries of the TIF District have been proposed to allow taxable properties to contribute to the surrounding Lancaster Corridor catalyst redevelopment projects and allow the taxing jurisdictions to receive additional funds that otherwise would not be collected. • The size and scope of the boundaries includes multiple tax-exempt properties that will benefit from the Lancaster Corridor redevelopment. • Below is a current land ownership map depicting the taxable and tax- exempt properties. Lancas p Non-Exempt xempt Church Exemption Charitable Or . Exemption Government Exemption _ TTHTIF ! I 1 I t :kh. KAI 7. Yj" LANCASTER 15 Boundaries (continued) • The size of the TIF District is 225 acres or 9,801,000 square feet of area. . , 225 acres G G G G C $ 3 8 T Ci � o CU'• e b ° h t# ■ 16 s �.. Pam 0 ' Term • The TIF District expires on the earlier of(i) December 31, 2024 or an earlier termination date designated by an ordinance subsequently adopted by the City Council of the City of Fort Worth or (ii) the date on which all project costs, tax increment bonds (if any) and interest on those bonds have been paid in full. • A cap on total expenditures is imposed, at 2003 dollars, of$16,000,000. Governance • The Project and Financing Plans only grant the TIF Board the use of$2.8 million in net present value terms for the T&P Terminal Redevelopment Project and any additional available tax increment for public infrastructure and improvements associated with the Convention Center Hotel Development Project. 16 • Any additional expenditure would require participating taxing jurisdiction review and approval and subsequent TIF Board approval. 17 ''�3333333333�3333333333333333��� �' �� � �'�' zzz zzz n`�sr. 3"i{ iSR► «gFnt �ssn��"ngiGo ....................................N w w w w w N w w w w w N N w N w N N w II' M6 rigs 114 HER qpo rg 1r g wNwwNwwwNwN$NAwNwNwNwwpNQNpNQNw�+wNww^NwRwNwxwwwNNANwRwQwwwwNQNNgwwQNQNNpwN J .O ^ , Q . 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DATE: 8/23/2011 SUBJECT: APPROVAL OF AMENDMENT NO. 1 TO FORT WORTH TAX INCREMENT FINANCING ZONE NO. 8 -LANCASTER CORRIDOR PARTICIPATION AGREEMENT FOR MODIFICATION TO THE PROJECT AND FINANCING PLANS FOR THE ZONE COMMISSIONERS COURT ACTION REQUESTED: It is requested that Commissioners Court consider the approval of the Amendment No. 1 to the Participation Agreement between the City of Fort Worth and Tarrant County for Fort Worth Tax Increment Financing Zone #8 (Lancaster Corridor TIF) and the amended to the Project and Financing Plan. BACKGROUND: On September 25,2007,through Court Order#101544,the Commissioners Court approved County participation in the City of Fort Worth Tax Increment Financing Reinvestment Zone #8 - Lancaster Corridor TIF, contributing 80% of its tax increment from the Zone for a period of twenty (20) years for the purpose of participating in funding of approximately $16,000,000.00 of public improvements within the Zone. Under the Participation Agreement,the County's total contribution to the TIF Fund is capped at$7 million. Since that time, changes in development within the Zone have indicated a need for possible TIF funding assistance in other project areas not addressed in the original Project and Financing Plan. On June 23, 2011, the TIF Board approved amendments to the Project and Financing Plan that allow the TIF to support development of mixed-use and residential developments at noted areas within the Zone that require streetscape improvements, parking or other infrastructure improvements. The City Council has also approved this updated Plan. Under the County's Participation Agreement, changes in the Project and Financing Plan require approval of the Commissioners Court for continued participation in funding. The Commissioners Court is now requested to consider approval of the amended Project and Financing Plan and approval of the Amendment No. 1 to the Participation Agreement for the Fort Worth TIF #8-Lancaster Corridor TIF. The Hospital District never took action regarding participation in this TIF and, because TIF project costs are expected to be funded without their participation, staff does not recommend County action in regards to Hospital District participation in TIF#8 or this amendment. FISCAL IMPACT: There is no additional fiscal impact with approval of the amendments. The modification to the TIF #8 Project and Financing Plan does not increase the dollar amount of projects to be funded, the term of the Zone, or the County's maximum contribution to the TIF Fund as set forth in the original Participation Agreement. SUBMITTED BY: Administrator's Office PREPARED BY: Lisa McMillan APPROVED BY: