Loading...
HomeMy WebLinkAboutContract 24539 CITY SECRETARY CONTRACT NO. /fj"-3 L INTERLOCAL AGREEMENT STATE OF TEXAS ' COUNTIES OF DALLAS AND TARRANT ' WHEREAS, the Dallas/Fort Worth International Airport Board, a joint board of the Cities of Dallas, Texas and Fort Worth, Texas (hereinafter "Board"), the City of Dallas, Texas (hereinafter "Dallas"), the City of Fort Worth, Texas (hereinafter "Fort Worth") and the City of Irving, Texas (hereinafter "Irving") desire to enter into this interlocal agreement for the sharing of Increased Revenues as defined herein; and WHEREAS, Irving desires to increase economic development and job creation opportunities for that portion of Irving located within the geographical boundaries of the D/FW International Airport as it exists to date and/or as it may be expanded as permitted by law (the Property); and WHEREAS, in exchange for the Board, Dallas and Fort Worth encouraging and giving consideration to the development of future economic development projects to be located on the Property, Irving is willing to share revenues with Dallas and Fort Worth equivalent to a portion of the Increased Revenues generated on the Property; and WHEREAS, the Board, Dallas, Fort Worth, and Irving mutually desire to enter into an arrangement to share an amount equal to the Increased Revenues received and/or collected by Irving within the Property; NOW, THEREFORE, for and in consideration of the mutual consideration, terms, and provisions contained herein, Dallas, Fort Worth, Irving and the Board hereby enter into this Interlocal Agreement (hereinafter"Agreement"). I. For purposes of this Agreement, the following shall have the meanings set forth below: A. "Property" shall mean that portion of Irving located within the geographical boundaries of the D/FW International Airport (which is owned in fee simple by the Board, Dallas, and/or Fort Worth) as it exists to date and/or as it may be changed as permitted by law. B. "Base Year" shall mean the 1998 calendar year ending on December 31, 1998. C. "Base Year Revenues" shall be $618.855. which is the sum of the following amounts r 1 (1) $600,000, which amount has been determined by the parties hereto as representing the amount of all (i) ad valorem tax revenues for real and personal property, (ii) sales and use tax, (iii) mixed beverage tax and (iv) other revenues received, credited to and/or collected by Irving in the Base Year from the Property, excluding municipal court revenues,plus (2) $18,855, which amount has been determined by the parties hereto as the amount of all municipal court revenues including fines, fees and court costs resulting from citations written on the Property, excluding fees and costs collected as required by state law, as determined by an independent audit funded by the Board, for the 1997 calendar year for citations written on the Property. D. "Increased Revenues" shall be an amount equal to the sum of the following amounts collected, credited to and/or received by Irving in any calendar year and which are generated on the Property, and which are in excess of Base Year Revenues: (i) the annual maintenance and operation portion of the ad valorem tax levy on real property and personal property, i.e. excluding the portion necessary for general obligation debt service, (ii) sales and use taxes (excluding those special sales tax levies dedicated for specific purposes, such as crime districts, ad valorem tax reduction, 4B Development Corporations, Transit Authorities and other taxes and/or assessments collected and dedicated for specific purposes authorized by law), (iii) that portion of any utility franchise tax collected on the Property, (iv) municipal court revenues including fines, fees and court costs resulting from citations written on the Property, excluding fees and costs which are required by state law to be dedicated to a specific fund and/or purpose or which are mandated by state law to be assessed as an administrative cost or collection fee, (v) mixed beverages taxes, (vi) all taxes authorized in Chapters 334 and 335 of the Local Government Code, and (vii) all other general revenue tax levies, save and except such levies which are dedicated and utilized for specific purposes or are replacing taxes dedicated and utilized for specific purposes under requirements of state law. II. For each year of this Agreement, Irving agrees to share Increased Revenues with Dallas and Fort Worth in the following percentages: one-third (1/3)to Irving and the remaining two-thirds (2/3) shall be shared by Dallas and Fort Worth in proportion to their respective ownership interest in the D/FW Airport. This Agreement does not, in any manner, create a guarantee to Irving that an amount equal to the Base Year Revenues will be received, credited to or collected by Irving. Only those funds actually collected shall be counted for the purpose of determining the amount of payment Irving owes under this Agreement, and bad debts and/or insufficient fund instruments shall not be counted unless good funds are actually collected. Irving agrees to diligently pursue, at its own expense, collection of any said bad debts or insufficient fund instruments to the full extent permitted by law. 2 III. Irving agrees that no tax abatement agreements, Tax Increment Finance (TIF) districts, Enterprise Zones, Public Improvement Zones or any similar type special incentive plan will be created with respect to all or any portion of the Property which would impact any revenues due Dallas and/or Fort Worth hereunder, unless all Parties agree in writing in advance to such a plan. Irving also agrees to levy and take all necessary action to collect all taxes, fees, etc. which would be applicable against all properties, persons, individuals and corporations affected by this agreement. IV. This revenue sharing arrangement shall not be construed as affecting any Increased Revenues of Irving other than those Increased Revenues generated on the Property. Revenues generated outside of the Property (including Revenues of Dallas and Fort Worth) shall not be considered when calculating Increased Revenues under this Agreement. V. Nothing in this Agreement should be construed as altering, changing or amending, in any way, the tax status or exemptions for publicly owned property. Nothing in this Agreement shall be deemed to be a pledge of any specific tax or other revenues by Irving, it being understood that any payments to be made by Irving, hereunder will be made from current revenues available for any municipal purpose. VI. This Agreement is designed to benefit all Parties including Irving, Dallas, Fort Worth, and the Board. More specifically, the Agreement is designed to more equitably distribute a portion of Revenues amongst the three Cities, while encouraging the further development and growth of DFW International Airport. The Cities of Dallas and Fort Worth and the Board agree that as a result of this Agreement, development opportunities within the Property which are consistent with the development policies of the Board, shall be encouraged. In an effort to encourage the growth and development of DFW International Airport and because of the close proximity of Irving's utilities to DFW Airport property, Irving shall permit tie-in and use of utilities by Airport tenants for those developments that fall within the Property under similar terms and conditions as permitted for other properties within the City of Irving. VII. The Board and the City of Irving agree to consult with each other, on a regularly scheduled basis, as it relates to the types of development and the development criteria which will be permitted on the property. The consultation shall be for the express purpose of complementing developments adjacent to the Property and coordinating uniformity in development criteria; however, all final development decisions shall be at the Board's sole discretion and nothing herein shall be construed as submitting the Property to the zoning authority of the City of Irving. 3 VIII. At the next scheduled Legislative Session of the Texas Legislature, and as may be required thereafter, Irving, Dallas, Fort Worth and the Board shall diligently seek a legislative validation of this Agreement from the Texas Legislature, the enactment of legislation amending the Texas Municipal Airports Act, Article 46d-14 (now Texas Transportation Code, §22.151 et seq.) to fully implement this Agreement by statute, if necessary, and/or any other legislative modifications which might be required to ensure that all Increased Revenues received or collected by Irving within the boundaries of DFW International Airport, whether existing or new, shall be shared as described in the Agreement. IX. All Parties agree to provide a vigorous defense of this Agreement in the event of litigation. The cost of such defense shall be apportioned based on the percentages specified in Section II hereof with respect to litigation concerning Increased Revenues. In the event of any adverse judicial decision or any other reason the anticipated sharing of Increased Revenues is not allowed, the Parties agree to use their best efforts and cooperate with each other to enter into alternative arrangements to share revenues as contemplated herein. X. The amount of Increased Revenues generated in subsequent years shall be verified by the independent auditor of the City of Irving with the cost of such verification being apportioned based on the percentages specified in Section II hereof with respect to Increased Revenues. Dallas and Fort Worth, or their designated representatives, shall be entitled, no more frequently than annually, to audit Irving's records of Increased Revenues. In an effort to aid in the audit and subsequent payment of Increased Revenues defined herein, the Board agrees to place in all new leases of its Property as described in Section I(A) herein entered into after the date of this Agreement, a provision which requires airport tenants to divulge taxes paid on the Property and utility fees paid on the Property from which franchise taxes covered hereunder are calculated, and/or to permit access to such information as will identify those taxes and fees paid on the Property. Irving agrees to pay Dallas and Fort Worth their respective shares of Increased Revenues attributable to each calendar year by March 31St of the following calendar year, unless otherwise agreed in writing signed by all Parties hereto. XI. This Agreement shall be governed by the laws of the State of Texas and the applicable laws of the United States of America, and venue on any suit brought hereunder shall lie exclusively in Dallas or Tarrant County, Texas. 4 XII. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision thereof, and in lieu of each provision of this Agreement that is illegal, invalid, or unenforceable, there shall be added a new provision to this Agreement as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and yet be legal, valid and enforceable, by means of good faith negotiation by the Parties to this Agreement. XIII. This Agreement shall be perpetual and may only be terminated by the mutual written agreement of all the Parties hereto. XIV. This Agreement shall become effective between the Parties hereto on the day of its approval by all of the City Councils of Dallas, Fort Worth and Irving and by the Board and shall continue in effect until it has been terminated according to this Agreement. XV. This Agreement may be amended or modified by the mutual agreement of all the Parties hereto, in writing,to be attached to and incorporated into this Agreement. XVI. This Agreement contains all commitments and agreements of all the Parties, and oral or written commitments not contained herein shall have no force or effect to alter any term or condition of this Agreement. XVII. This Agreement shall be executed by the duly authorized official(s) of the Party as expressed in the approving resolution or order of the governing body of such Party, a copy of each which is attached hereto. XVIII. In the event that the Board, Dallas and Fort Worth enter into a future agreement with another jurisdiction located within the geographical boundaries of the DFW International Airport as it now exists and/or it may be changed for the sharing of Increased Revenues, and that agreement provides that such jurisdiction shall retain a larger percentage of Increased Revenues than that retained by Irving pursuant to this Agreement, then in such event this Agreement shall be amended effective as of date of such future agreement to provide for Irving's retention of the same percentage of future Increased Revenues hereunder. 5 XIX. This Agreement shall become null and void and of no further effect or consequence, if and only if the currently proposed pilot training/simulator facility to be owned and operated by FlightSafety International Inc. or its successor is located within the geographical boundaries of DFW International Airport and is not located inside the boundaries of Irving as defined in Section I(A)herein. EXECUTED on this, the ,Pst day of [)�'C t ,., 1, , 1998. 6 THE CITY OF I G, EXAS By: Morris ml Title: Mayor Date: ct APPRO - S TO F City A omey DALLAS/FORT WORTH INTERNATIONAL AIRPORT/ BOARD e rey . Fegan Title: Executive Director Date: Ll '� � � � APPRO D AS TO FORM: DFW Ai rt Legal Counsel H D LLAS,TEXAS By: Date: i 49 APPROVED AS TO FORM: ity Attorney THE CITY OF FORT WORTH,TEXAS C By:G� ,�"�'�� -�� Title: Date: APP VED AS TO FORM: >>�- City Attorney ATTESTED BY A�.*h")r " Zation .%ate 1. DALLAS FORT WORTH INTERNATIONAL AIRPORT BOARD OFFICIAL BOARD ACTION/RESOLUTION Date: Subject: Interlocal Agreement with the City of Irving, the City of Resolution No.: 10-23-98 Dallas, and the Citv of Fort Worth 98-10-327 Recommended Action: That the Executive Director be authorized to enter into an Interlocal Agreement with the City of Irving, the City of Dallas, and the City of Fort Worth regarding a tax-sharing arrangement. Description: • City of Irving would agree to share an amount equal to the increased tax revenues over the base year revenues with Dallas and Fort Worth in exchange for the encouragement of further development and growth of the airport property that falls within the geographical boundaries of the City of Irving. Justification: • This agreement is designed to benefit all parties including Irving, Dallas, Fort Worth, and the Airport Board. This agreement is designed to more equitably distribute revenues amongst the three cities, while encouraging the further development and growth of Dallas/Fort Worth International Airport. M/WBE Information: • Not applicable Schedule/Term: • The agreement shall be perpetual in nature and may only be terminated by the mutual written agreement of all the parties. The agreement shall become effective between the parties on the day of its approval by all of the City Councils of Dallas, Fort Worth, and Irving and by the Board and shall remain in effect until it has been terminated consistent with the terms of the agreement. Additional Information: • See attached Funding Source(s): • Not applicable Committee: Contract No(s).: Action Amount: Finance/Audit Revised Amount: Purchase Order No(s).: For information contact: Kevin E. Cox - 574-8058 Agreement No(s).: 16 RESOLUTION NO.: 98-10-327 BE IT RESOLVED BY THE DALLAS-FORT WORTH INTERNATIONAL AIRPORT BOARD: That the Executive Director is hereby authorized to execute an Interlocal Agreement on behalf of the Airport Board with the City of Dallas, Texas, the City of Fort Worth, Texas, and the City of Irving, Texas, for the sharing of an amount equal to the Increased Tax Revenues (over the Base Year Tax Revenues) generated on airport property within the City of Irving. This Resolution shall take effect immediately upon its passage. Approved as to Form: Approved as to Funding (as Approved as to M/WBE; required): General Counsel R c-�ir g Director of Finance Director of Minority and Budget rand Economic Affairs L0 -a' �g �`� � z2 Date Signed Date Signed Date Signed SIGNATURES REQUIRED FOR APPROVAL: Depa e�-Director e ve hector Date Sinned Date Signed CITY OF IRVING COUNCIL RESOLUTION NO. 10-22-98- 535 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IRVING, TEXAS: SECTION I. THAT the City Council hereby approves the attached agreement between the City of Irving and the Dallas/Fort Worth International Airport Board (Airport), the City of Dallas (Dallas) and the City of Fort Worth (Fort Worth) whereby the City of Irving will share tax revenues with the Airport, Dallas and Fort Worth and the Mayor is authorized to execute said agreement. SECTION II. THAT this resolution shall take effect upon its date of passage, and it is accordingly so ordered. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF IRVING, TEXAS, this 22nd day of October, A.D., 1998. C7X7`� . -;�"' - K" MORTWS H. ARRISH MAYOR ATTEST: � OF IR�� Janice Carroll, CMC City Secretary tS�, SEP} i `q?'E OF AP O D AS O Rtil: P on . Ror a City Atto y i2 1 - A VP) A Resolution �,�io;ted ReSOltlt;:lli i_YO�,:�.� RESOLUTION AUTHORIZING AN INTERLOCAL AGREEMENT WITH THE CITIES OF IRVING AND DALLAS FOR THE SHARING OF REVENUES GENERATED WITHIN THE BOUNDARIES OF D/FW INTERNATIONAL AIRPORT WHEREAS, a portion of the City of Irving (Irving) is located within the geographical boundaries of the Dallas/Fort Worth International Airport(the Airport); and WHEREAS, Irving desires to increase economic development and •job creation opportunities for that portion of Irving located within Airport boundaries as those boundaries currently exist or as they may be changed in the future (the Property); and WHEREAS, in exchange for the City of Fort Worth (Fort Worth), the City of Dallas (Dallas), and the Airport's Board (the Board) encouraging and giving consideration to the development of future economic development projects on the Property, Irving is willing to share revenues with Fort Worth and Dallas equivalent to certain tax and other revenues generated from the Property; and WHEREAS, a proposed Interlocal Agreement (attached hereto) between Fort Worth, Dallas, the Board and Irving has been negotiated which provides for the sharing of amounts equal to Increased Revenues, as defined therein, generated from the Property; and WHEREAS, the Board has approved the Interlocal Agreement by its adoption of Resolution 98-10-327 on October 23, 1998; and WHEREAS, Irving has approved the Interlocal Agreement by the adoption of Resolution No. 10-22-98-535 by the Irving City Council on October 22, 1998; and WHEREAS, Dallas has approved the Interlocal Agreement by the adoption of Resolution No. 98-19-327 by the Dallas City Council on December 3, 1998. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,TEXAS: 1. That the City Manager is authorized to execute the attached Interlocal Agreement. 2. That the City Manager and City Attorney shall be authorized to make any nonsubstantive revisions to the Interlocal Agreement which may be necessary prior to its execution CITY OF FORT WORTH 3. That the City Manager is authorized to execute such other documents and instruments as may be necessary to effectuate this transaction. 4. That the City Attorney shall approve as to form and legality any legal instruments or documents prior to their execution by the City Manager. 5. That this resolution shall take effect from and after its adoption by the City Council. ADOPTED this day of 1998. ( ('� "" 0:�= Mayor, City of Fort Worth ATT G oria Pearson, City Secretary APPROVED AS TO FORM AND LEGALITY: Assistant City Attorney p Date: 1T� i t t CITY OF FORT WORTH