HomeMy WebLinkAboutContract 58007 TAX INCREMENT FINANCING
FUNDING AGREEMENT
Phase 1 - Trinity Boulevard CSC No. 58007
This TAX INCREMENT FINANCING FUNDING AGREEMENT ("Agreement") is
entered into by and between the BOARD OF DIRECTORS OF TAX INCREMENT
REINVESTMENT ZONE NUMBER FOURTEEN, CITY OF FORT WORTH, TEXAS
(`Board"), an administrative body appointed in accordance with Chapter 311 of the Texas Tax
Code ("TIF Act") to oversee the administration of Tax Increment Reinvestment Zone Number
Fourteen, City of Fort Worth, Texas, a reinvestment zone designated by ordinance of the City of
Fort Worth in accordance with the TIF Act, and the CITY OF FORT WORTH("City"),a Texas
home-rule municipality.
The Board and City hereby agree that the following statements are true and correct and
constitute the basis upon which the Board and City have entered into this Agreement:
A. On November 12, 2012,the City Council adopted Ordinance No. 20505-11-2012,
establishing Tax Increment Reinvestment Zone Number Fourteen, City of Fort Worth, Texas
("TIF District"), and establishing the tax increment fund of the TIF District("TIF Fund").
B. On January 31, 2013, the Board adopted a project and financing plan for the TIF
District, pursuant to Board Resolution No. 2013-1 ("TIF Project Plan"). The TIF Project Plan
was approved by the City Council on February 05, 2013 pursuant to Ordinance No. 20606-02-
2013.
C. The City has proposed to construct certain public improvements to Trinity
Boulevard between Loop 820 and Salado Trail estimated to cost about $18,500,000.00
("Project"),which are set forth in more detail in Exhibit A attached hereto and incorporated herein
for all purposes.
D. The City intends to issue debt to finance the Public Improvements and has requested
any currently undedicated annual revenue or cash balance from the TIF District to reimburse the
City for all costs, including financing costs,necessary for the Public Improvements.
E. The TIF Project Plan specifically authorizes the Board to enter into agreements
dedicating revenue from the TIF fund for public improvements that benefit the general public and
facilitate development of the TIF district as an eligible expense.
F. The costs of the Project qualify as lawful "project costs,"as that term is defined in
Section 311.002(1) of the TIF Act("Project Cost").
NOW, THEREFORE, the Board and City, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
OFFICIAL RECORD
CITY SECRETARY
Agreement for TIF Funding
between TIF 14 and City of Fort Worth FT. WORTH, TX
Page 1 of 7
1. CITY'S OBLIGATIONS.
City will oversee and be responsible for all aspects of the Project in accordance with this
Agreement,the Plans, and all Legal Requirements.
2. FUNDING BY THE BOARD
2.1 Amount of Funding.
Provided that the City pursues the Project, and the City has complied with all terms and
conditions of this Agreement, the Board will provide funding for the Project in an amount up to
the full amount of the City's debt obligations for the Project (inclusive of principal and interest),
which is expected to be approximately Twenty-One Million Dollars and Zero Cents
($21,000,000.00) ("Funds") in accordance with this Agreement; provided, however, that if there
are not sufficient revenues in the TIF Fund at such time, the financial obligations of the Board to
City under this Agreement will be carried forward without interest to the next fiscal year of the
TIF District in which there are sufficient revenues in the TIF Fund to satisfy such obligations. In
no event will the Board pay City any portion of the Funding in excess of Funds.
2.2 Reimbursement.
All costs incurred pursuant to the Project will be advanced and paid for by City and will
not, in any event, be paid by the Board except as a reimbursement to City in accordance with this
Agreement.
2.3 TIF Fund Contributions.
The Board acknowledges and consents to the transfer from the TIF Fund of up to the total
amount of the Funds, in whole or in part,to the funds or accounts of the City that will be used to
pay for the costs of the Project.
2.4 Limited to Available TIF Funds.
Notwithstanding anything to the contrary herein, City understands and agrees that the
Board will be required to pay the Funds only from available revenues in the TIF Fund that are
attributable solely to tax increment (as defined in Section 311.012 of the Texas Tax Code)
generated annually from property located in the TIF District and deposited into the TIF Fund in
accordance with the TIF Act.
2.5 Priority of Payment.
Notwithstanding anything to the contrary herein, City understands and agrees that any
obligation of the Board to pay all or any portion of the Reimbursement Amount shall be subject
and subordinate to the Board's right to retain reserves in the TIF Fund in any fiscal year to meet
all existing contractual obligations of the Board. Specifically and without limiting the generality
Agreement for TIF Funding
between TIF 14 and City of Fort Worth
Page 2 of 7
of the foregoing, the following payments, as obligated by the following existing contractual
obligations, will have priority over payment by the Board of all or any portion of the
Reimbursement:
(a) That certain Tax Increment Financing Development Agreement between
the Board and Trinity Lakes Partners, LLC, for public improvements
associated with commercial and mixed-use developments,including a water
line and the THE Access Road.
3. TERM.
The term of this Agreement is effective as of December 9, 2020 ("Effective Date") and
expires upon the earlier of(i)the complete performance of all obligations and conditions precedent
by the Board and City; or (ii) termination by either the Board or City as permitted by this
Agreement.
4. SUCCESSORS AND ASSIGNS.
City may not assign its rights or obligations under this Agreement to any other party
without the advance written approval of the Board, which may be withheld at the Board's
discretion. This Agreement shall be binding on and inure to the benefit of the parties, their
respective successors and assigns.
5. 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 designates in writing, by certified mail,
postage prepaid, or by hand delivery:
Board: City:
Board of Directors City of Fort Worth
Trinity Lakes TIF Attn: Assistant City Manager
Attn: Robert Sturns,Director 200 Texas Street
1105 South Freeway Fort Worth, TX 76102
Fort Worth, TX 76104
6. VENUE AND CHOICE OF LAW.
This Agreement shall be construed in accordance with the laws of the State of Texas and
applicable ordinances, rules, regulations or policies of the City. Venue for any action under this
Agreement shall lie in the State District Court of Tarrant County, Texas or the United States
District Court for the Northern District of Texas, Fort Worth Division. This Agreement is
performable in Tarrant County, Texas.
Agreement for TIF Funding
between TIF 14 and City of Fort Worth
Page 3 of 7
7. COMPLIANCE WITH LEGAL REQUIREMENTS.
This Agreement is subject to all applicable federal, state and local laws, ordinances, rules
and regulations, including, but not limited to, all provisions of the City's Charter and ordinances,
as amended, and violation of the same shall constitute a default under this Agreement. In
undertaking any work in accordance with this Agreement, City, its officers, agents, servants,
employees, contractors and subcontractors shall comply with all federal, state and local laws and
all ordinances, rules and regulations of the City, as such laws, ordinances, rules and regulations
exist or may hereafter be amended or adopted(collectively, "Legal Requirements").
8. SEVERABILITY.
If any provision of this Agreement is held to be invalid, illegal or unenforceable, the
validity,legality and enforceability of the remaining provisions shall not in any way be affected or
impaired.
9. COUNTERPARTS.
This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original and constitute one and the same instrument.
10. CAPTIONS.
The captions to the various clauses of this Agreement are for informational purposes only
and shall not alter the substance of the terms and conditions of this Agreement.
11. 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.
12. GOVERNMENTAL POWERS.
It is understood that by execution of this Agreement,neither the Board nor the City waives
or surrenders any of their governmental powers or immunities.
13. FORCE MAJEURE.
It is expressly understood and agreed by the parties to this Agreement that if the
performance of any obligations hereunder is delayed by reason of war, civil commotion, acts of
God, inclement weather, governmental restrictions, regulations, or interferences, unreasonable
delays by the City in issuing any permits or certificates of occupancy or conducting any inspections
of or with respect to the Project(based on the amount of time that the City customarily requires in
undertaking such activities and based on the then-current workload of the City department(s)
responsible for undertaking such activities), or delays caused by unforeseen construction or site
Agreement for TIF Funding
behveen TIF 14 and City of Fort Worth
Page 4 of 7
issues, fire or other casualty, court injunction, necessary condemnation proceedings, acts of the
other party,its affiliates/related entities and/or their contractors,or any actions or inactions of third
parties or other circumstances which are reasonably beyond the control of the party obligated or
permitted under the terms of this Agreement to do or perform the same,regardless of whether any
such circumstance is similar to any of those enumerated or not,the party so obligated or permitted
shall be excused from doing or performing the same during such period of delay, so that the time
period applicable to such design or construction requirement shall be extended for a period of time
equal to the period such party was delayed.
14. BOARD REPRESENTATIVE.
City understands and agrees that the Board, in its sole discretion, may also appoint certain
City staff members, a City department or another entity to serve as its representative in carrying
out any or all of the responsibilities of the Board hereunder, and that references to "the Board" in
this Agreement mean the Board in its entirety or any such designated representative.
15. NO THIRD PARTY RIGHTS.
This Agreement is solely for the benefit of the parties hereto and is not intended to create
or grant any rights, contractual or otherwise,to any other person or entity.
16. 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 Board and the
City, their assigns and successors in interest, 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. This Agreement shall not be amended unless
executed in writing by both parties and approved by the Board in an open meeting held in
accordance with Chapter 551 of the Texas Government Code.
IN WITNESS WHEREOF,the undersigned have caused this Agreement to be executed effective
as of the Effective Date:
BOARD,OF DIRECTORS OF TAX CITY OF FORT WORTH
INCREMENT REINVESTMENT
ZONE NUMBER TIF FOURTEEN,
CITY OF FORT WORTH, TEXAS:
14, . >
By: By: Reginald Zeno(Aug 2,202218:53 CDT)
Gyna Bivens Reginald Zeno
Chairperson Acting Assistant City Manager
Resolution No. 14-2020-2 (December 9, 2020) OFFICIAL RECORD
Agreement for TIF Funding CITY SECRETARY
between TIF 14 and City of Fort Worth FT. WORTH, TX
Page 5 of 7
Contract Compliance Manager:
By signing, I acknowledge that I am the person responsible
for the monitoring and administration of this contract, including
ensuring all performance and reporting requirements.
Michael Hennig(Aug 2,202210:13 CDT)
Name of Employee
Economic Development Manager
Title
APPROVED AS TO FORM AND LEGALITY:
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Tyler Wallach
Senior Assistant City Attorney
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By:Jannette S.Goodall(Aug 18,2022 15:11 CDT) Y,
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M&C: 20-0939 (December 15, 2020)
II
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Agreement for TIF Funding
between TIF 14 and City of Fort Worth
Page 6 of 7
Exhibit A
Project
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Agreement for TIF Funding
between TIF 14 and City of Fort Worth
Page 7 of 7
Resolution: 14-2020-2
Date: December 9, 2020
RESOLUTION
Board of Directors
Tax Increment Reinvestment Zone Number Fourteen, City of Fort Worth, Texas
(Trinity Lakes TIF)
AUTHORIZING EXECUTION OF A TAX INCREMENT FINANCING
DEVELOPMENT AGREEMENT BETWEEN THE BOARD OF DIRECTORS OF TAX
INCREMENT REINVESTMENT ZONE NUMBER FOURTEEN AND THE CITY OF
FORT WORTH, FOR IMPROVEMENTS TO TRINITY BOULEVARD AND FOR
OTHER PUBLIC INFRASTRUCTURE
WHEREAS, the Board of Directors ("Board") of Tax Increment Reinvestment Zone Number
Fourteen, City of Fort Worth, Texas ("TIF District") desires to promote the development and
redevelopment of the Trinity Lakes area as authorized by the Fort Worth City Council and state
law;
WHEREAS, on January 31, 2013, the Board adopted a Project and Financing Plan ("Plan") for
the TIF District, which was approved by the City Council by ordinance and in accordance with
Section 311.011 of the Texas Tax Code;
WHEREAS, in accordance with Section 311.011 of the Texas Tax Code,the Board may use TIF
revenue only for the types and kinds of projects set forth in the Plan;
WHEREAS,the plan identifies public improvements that benefit the general public and facilitate
development of the TIF District as an eligible expense; and
WHEREAS, the City of Fort Worth (the "City") has proposed to construct certain public
improvements to Trinity Boulevard between Loop 820 and Salado Trail estimated to total
$18,500,000.00 ("Public Improvements");
WHEREAS, the City intends to issue a debt obligation to finance the Public Improvements and
has requested any currently undedicated annual revenue or cash balance from the TIF District
reimburse the City for all costs, including financing costs,necessary for the Public Improvements;
WHEREAS, consistent with the Plan, the Board now wishes to approve a Tax Increment
Financing Development Agreement with the City to fund or reimburse the City for the Public
Improvements.
NOW, THEREFORE, BE IT RESOLVED:
Section 1. That the Board hereby authorizes a Tax Increment Financing Development Agreement
with the City to fund or reimburse the costs of the Public Improvements.
1of2
Resolution: 14-2020-2
Date: December 9, 2020
Section 2. That the Chairperson of the Board is authorized to sign this Resolution on the Board's
behalf.
Section 3. That this Resolution takes effect immediately from and after its passage.
Approved:
Gyna Bivens, Chair
2 of 2
8/24/22, 11:06 AM M&C Review
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA Foy Wow
Create New From This M&C
DATE: 12/15/2020 REFERENCE M&C 20- LOG NAME: 17TRINITYLAKESTIFAGREEMENT
NO.: 0939
CODE: C TYPE: NOW PUBLIC NO
CONSENT HEARING:
SUBJECT: (CD 5) Authorize Execution of a Tax Increment Financing Development Agreement with
the Tax Increment Reinvestment Zone Number Fourteen (Trinity Lakes) to
Fund Construction of Infrastructure Improvements Along Trinity Boulevard in an Amount
Up to $18,500,000.00, Plus Interest
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Tax Increment Financing
Development Agreement with Tax Increment Reinvestment Zone Number Fourteen (Trinity Lakes) to
fund construction of infrastructure improvements along Trinity Boulevard in an amount up to
$18,500,000.00, plus interest.
DISCUSSION:
On January 31, 2013, the Board of Tax Increment Reinvestment Zone Number Fourteen (Trinity
Lakes TIF) adopted a project and financing plan for the Trinity Lakes TIF, which was approved by the
City Council by ordinance and in accordance with Section 311.011 of the Texas Tax Code. Included in
the Project and Financing Plan were certain proposed infrastructure improvements to Trinity
Boulevard intended to mitigate flooding, enhance walkability, and support the development of
surrounding properties.
The City is currently planning to construct improvements to Trinity Boulevard between Interstate
Highway (IH) 820 and Precinct Line Road (Project). The City intends to fund the Project through
bond financing or another similar means, with funding from the Trinity Lakes TIF to help offset the
costs of the Project, including any construction and financing costs.
The Board of the Trinity Lakes TIF will consider funding the Project in an amount up to
$18,500,000.00 in current and future TIF funds.
It is recommended that the City execute a TIF Development Agreement with the Trinity Lakes TIF,
providing for such funding and outlining the responsibilities of both the Trinity Lakes TIF and the City
with respect to the Project. Once the associated Project has been completed, the balance of any
remaining funds obligated by the Trinity Lakes TIF for the Project will be returned to the Trinity Lakes
TIF for use in support of other projects and activities outlined in its Project and Financing Plan.
This project is located in COUNCIL DISTRICT 5.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendation and execution of
the contract, funds will be deposited into the TIRZ#14 - Trinity Lakes Fund. The Economic
Development Department (and Financial Management Services) is responsible for the collection and
deposit of funds due to the City.
TO
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID I YearChartfield 2)7
FROM
apps.cfwnet.org/council_packet/mc_review.asp?ID=28508&councildate=l 2/15/2020 1/2
8/24/22, 11:06 AM M&C Review
F Cftd Department Account Project Program Activity Budget Reference # Amount
rtfiel
ren
Submitted for City Manager's Office by_ Jay Chapa (5804)
Originating Department Head: Robert Sturns (2663)
Additional Information Contact: Michael Hennig (6024)
ATTACHMENTS
17TRINITYLAKESTIFAGREEMENT funds avail.docx (CFW Internal)
FID Table.xlsx (CFW Internal)
Trinity. Lakes TIF Improvements Map.pdf (Public)
apps.cfwnet.org/council_packet/mc_review.asp?ID=28508&councildate=l 2/15/2020 2/2