HomeMy WebLinkAboutOrdinance 22163-04-2016 ORDINANCE NO. 22163-04-2016
AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE
CITY OF FORT WORTH AS "TAX ABATEMENT
REINVESTMENT ZONE NUMBER NINETY-TWO, CITY OF
FORT WORTH, TEXAS"; PROVIDING THE EFFECTIVE AND
EXPIRATION DATES FOR THE ZONE AND A MECHANISM
FOR RENEWAL OF THE ZONE; AND CONTAINING OTHER
MATTERS RELATED TO THE ZONE.
WHEREAS, pursuant to the City Council's adoption on May 20, 2014 of
Resolution No. 4322-05-2014 (the "Tax Abatement Policy"), the City of Fort Worth,
Texas (the "City") has elected to be eligible to participate in tax abatement and has
established guidelines and criteria governing tax abatement agreements entered into
between the City and various third parties, as authorized by and in accordance with the
Property Redevelopment and Tax Abatement Act, codified in Chapter 312 of the Texas
Tax Code (the "Code"); and
WHEREAS, the City Council desires to promote the development of the area in
the City more specifically described in Exhibit "A" of this Ordinance (the "Zone")
through the creation of a reinvestment zone for purposes of granting a business expansion
tax abatement, as authorized by and in accordance with Chapter 312 of the Code; and
WHEREAS, Andrews Distributing Company of North Texas, LLC
("Company") wishes to expend or cause to be expended at least $35 million in real
property improvements for the construction of a new distribution center, with new office
space and a sign shop to be located in the Zone, and Company intends to install new
taxable tangible business personal property in the facility that ultimately will result in a
Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety-two, Ordinance No.22162-04-2016
City of Fort Worth,Texas Page 1 of 8
combined real and personal property investment of at least $37 million (collectively, the
"Improvements"); and
WHEREAS, Company has applied for real and business personal property tax
abatements from the City in return for the installation of the Improvements in the Zone
and compliance with certain other employment and spending commitments that will
foster economic development in the Zone and the City in general; and
WHEREAS, on April 12, 2016 the City Council held a public hearing regarding
the creation of the Zone, received information concerning the Improvements proposed for
the Zone and afforded a reasonable opportunity for all interested persons to speak and
present evidence for or against the creation of the Zone ("Public Hearing"), as required
by Section 312.201(d) of the Code; and
WHEREAS, notice of the Public Hearing was published in a newspaper of
general circulation in the City on April 5, 2016, which satisfies the requirement of
Section 312.201(d)(1) of the Code that publication of the notice occur not later than the
seventh day before the date of the public hearing; and
WHEREAS, in accordance with Sections 312.201(d)(2) and (e), of the Code
notice of the Public Hearing was delivered in writing not later than the seventh day
before the date of the public hearing to the presiding officer of the governing body of
each taxing unit that includes in its boundaries real property that is to be included in the
proposed Zone;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS:
Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety-two, Ordinance No.22162-04-2016
City of Fort Worth,Texas Page 2 of 8
Section 1.
FINDINGS.
That after reviewing all information before it regarding the establishment of the
Zone and after conducting the Public Hearing and affording a reasonable opportunity for
all interested persons to speak and present evidence for or against the creation of the
Zone, the City Council hereby makes the following findings of fact:
I.I. The statements and facts set forth in the recitals of this Ordinance are true and
correct. Therefore, the City has met the notice and procedural requirements
established by the Code for creation of a reinvestment zone under Chapter 312 of
the Code.
1.2. The Improvements proposed for the Zone, as more specifically outlined in the
Public Hearing, are feasible and practical and, once completed will benefit the
land included in the Zone as well as the City for a period of five (5) years, with an
option to extend for not more than an additional five years, but not to exceed ten
(10) years, which is the statutory maximum tern of any tax abatement agreement
entered into under the Chapter 312 of the Code.
1.3. As a result of designation as a reinvestment zone, the area within the Zone is
reasonably likely to contribute to the expansion of primary employment and to
attract major investment in the Zone that will be a benefit to property in the Zone
and will contribute to the economic development of the City.
Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety-two, Ordinance No.22162-04-2016
City of Fort Worth,Texas Page 3 of 8
Section 2.
DESIGNATION OF ZONE.
That the City Council hereby designates the Zone described in the boundary
description attached hereto as Exhibit "A" and made a part of this Ordinance for all
purposes as a reinvestment zone for purposes of granting business expansion tax
abatement, as authorized by and in accordance with Chapter 312 of the Code. This Zone
shall be known as "Tax Abatement Reinvestment Zone Number Ninety-two, City of Fort
Worth, Texas." This project is eligible for commercial/industrial tax abatement pursuant
to Section 4.3 of the Tax Abatement Policy.
Section 3.
TERM OF ZONE.
That the Zone shall take effect upon the effective date of this Ordinance and
expire five (5) years thereafter. The Zone may be renewed by the City Council for one or
more subsequent terms not to exceed five years.
Section 4.
SEVERABILITY.
That if any portion, section or part of a section of this Ordinance is subsequently
declared invalid, inoperative or void for any reason by a court of competent jurisdiction,
the remaining portions, sections or parts of sections of this Ordinance shall be and remain
in full force and effect and shall not in any way be impaired or affected by such decision,
opinion or judgment.
Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety-two, Ordinance No.22162-04-2016
City of Fort Worth,Texas Page 4 of 8
Section 5.
IMMEDIATE EFFECT.
That this Ordinance shall take effect upon its adoption.
APPROVED AS TO FORM AND LEGALITY:
J
Peter Vaky, Mary J. er
Deputy City Attorn City Seer ary
ADOPTED AND EFFECTIVE: April 12, 2016
M&C: G-18716
Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety-two, Ordinance No.22162-04-2016
City of Fort Worth,Texas Page 5 of 8
EXHIBIT "A"
BOUNDARY DESCRIPTION OF ZONE
TRACT 1:
DESCRIPTION, of a 30.446 acre tract of land situated in the John Hibbins Survey,Abstract
No. 638 Tarrant County, Texas; said tract being all of Tract 1 described in Special Warranty
Deed to Zephyr Rail Industrial, L.P. recorded in Instrument No. D204360997 of the Deed
Records of Tarrant County, Texas; said 30.446 acre tract being more particularly described
as follows (bearing system is based on a bearing of South 63 degrees, 10 minutes, 36
seconds West for the south line of Tract 1 of Zephyr Rail Industrial, L.P., recorded in
Instrument No. D204360997, Deed Records of Tarrant County, Texas):
BEGINNING, at a 1/2-inch iron rod with "PACHECO KOCH" cap set in the south line of
Oncor Electric Delivery Company, LLC. tract recorded in Volume 2039, Page 163; said point
being the northwest corner of Tract 2 described in said Special Warranty Deed to Zephyr
Rail Industrial, L.P. and the east corner of a tract of land described in General Warranty
Deed to Texas Electric Service Company recorded in Volume 4915, Page 630 of the
said Deed Records;
THENCE, South 26 degrees, 49 minutes, 24 seconds East, along the west line of said Tract 2,
passing at a distance of 354.87 feet a 5/8-inch iron rod with "PATE" cap found for the
southwest corner of said tract 2, continuing in all a total distance of 571.92 feet to a 5/8-
inch iron rod with "PATE" cap found for corner; said point being an ell corner
of a tract of land described in Special Warranty Deed to A& G Investment Group, Inc.,
recorded in Instrument No. D20 12827 66 of said Deed Records;
THENCE, South 63 degrees, 10 minutes, 36 seconds West, along the north line of said A& G
Investment, Inc. tract, a distance of 1,958.45 feet to a 1/2-inch iron rod with cap found for
an angle corner;
THENCE, South 83 degrees, 46 minutes, 36 seconds West, continuing along the said north
line of the A&G Investment, Inc. tract, a distance of 195.67 feet to a 1/2-inch iron rod with
"PACHECO KOCH" cap found for corner in the east line of Railhead Road (a 68 foot wide
right-of-way);
THENCE, departing the said north line of the A& G Investment, Inc. tract and along the said
east line of Railhead Road the following (3) three calls:
North 06 degrees, 13 minutes, 24 seconds West, a distance of275.84 feet to a 5/8-inch iron
rod with "C AND B" cap found for corner; said point being the beginning of a tangent curve
to the left; along said curve to the left, having a central angle of 26 degrees, 00 minutes, 47
seconds, a radius of 434.00 feet, a chord bearing and distance of North 19 degrees, 13
minutes, 48 seconds West, 195.35 feet, an arc distance of 197.04 feet to a 5/8-inch iron rod
with "C AND B" cap found for at the end of said curve to the left;
North 32 degrees, 14 minutes, 11 seconds West, a distance of 119.20 feet to a 1/2-inch iron
rod with "PACHECO KOCH" cap set for corner in the south line of State Highway No. 820;
THENCE, departing the said east line of Railhead Road and along the said south line of State
Highway No. 820,the following (3) three calls:
North 57 degrees, 45 minutes, 35 seconds East, a distance of 485.98 feet to a 5/8-inch iron
rod with "PATE" cap found for an angle corner;
North 61 degrees, 40 minutes, 35 seconds East, a distance of391.15 feet to a 5/8-inch iron
rod with "PATE" cap found for an angle corner;
North 65 degrees, 39 minutes, 04 seconds East a distance of399.95 feet to a 1-inch iron rod
found for an angle corner; said point being the west corner of said Texas Electric Service
Company Tract;
THENCE, South 56 degrees, 20 minutes, 48 seconds East, departing the said south line of
State Highway No. 820 and along the west line of said Texas Electric Service Company tract,
a distance of 88.46 feet to a 5/8-inch iron rod with "PATE" cap found for comer;
THENCE, North 65 degrees, 32 minutes, 03 seconds East, departing the west line of said
Texas Electric Service Company tract and along the south line of the said Texas Electric
Service Company Tract, a distance of712.60 feet to the POINT OF BEGINNING;
CONTAINING: 1,326,208 square feet or 30.446 acres of land, more or less.
TRACT2:
DESCRIPTION, of a 3.322 acre tract of land situated in the John Hibbins Survey,Abstract
No. 638; said tract being part of Lot 2A, Block B-R, Fort Worth Phase I Addition, an addition
to the City of Fort Worth, Texas according to the plat recorded in Cabinet A, Slide 6896 of
the Plat Records of Tarrant County Texas; said tract also being all of Tract 2 described in
Special Warranty Deed to Zephyr Rail Industrial, L.P. recorded in Instrument No.
D204360997 of the Deed Records of Tarrant County Texas; said 3.322 acre tract being
more particularly described as follows (bearing system is based on a bearing of South 63
degrees, 10 minutes, 36 seconds West for the south line of Tract 1of Zephyr Rail Industrial,
L.P., recorded in Instrument No. D204360997, Deed Records of Tarrant County, Texas):
BEGINNING, at a 1/2-inch iron rod with "PACHECO KOCH" cap set in the south line of a
tract of land described in General Warranty Deed to Texas Electric Service Company
recorded in Volume 2039, Page 163 of the said Deed Records; said point being the
northeast comer of Tract 1 described in said Special Warranty Deed to Zephyr Rail
Industrial, L.P. and the east comer of a tract of land described in General Warranty Deed to
Texas Electric Service Company recorded in Volume 4915, Page 630 of the said Deed
Records;
THENCE, South 89 degrees, 44 minutes, 40 seconds East, along the said south line of the
Texas Electric Service Company tract recorded in Volume 2039, Page 163 of said Deed
Records, a distance of 1284.74 to a 1/2-inch iron rod with "PACHECO KOCH" cap found for
comer;
THENCE, South 36 degrees, 20 minutes, 36 seconds East, departing the said south line of
the Texas Electric Service Company tract, a distance of37.37 feet to a 5/8-inch iron rod
with "PATE" cap found for comer;
THENCE, North 89 degrees, 44 minutes, 40 seconds West, a distance of 550.07 feet to a
1/2-inch iron rod with "PACHECO KOCH" cap found for comer;
THENCE, South 64 degrees, 36 minutes, 05 seconds West, a distance of 660.52 feet to a
5/8-inch iron rod with "PATE" cap found for comer in the east line of said Tract 1;
THENCE, North 26 degrees, 49 minutes, 24 seconds West, along the said east line of Tract 1,
a distance of354.87feet to the POINT OF BEGINNING;
CONTAINING: 144,686 square feet or 3.322 acres of land, more or less.
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 4/12/2016 - Ordinance No. 22163-04-2616
DATE: Tuesday, April 12, 2016 REFERENCE NO.: G-18716
LOG NAME: 17ED TARIZ92
SUBJECT:
Conduct Public Hearing and Adopt Ordinance Designating Property Located at 100 NE Loop 820 Within
the City of Fort Worth as Tax Abatement Reinvestment Zone No. 92, City of Fort Worth, Texas for
Construction of a Distribution Center for Andrews Distributing of North Texas (COUNCIL DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council:
1. Conduct a public hearing concerning the designation of property at 100 NE Loop 820 that is located
within the City of Fort Worth as Tax Abatement Reinvestment Zone No. 92, City of Fort Worth, Texas for
construction of a 400,000 square foot distribution facility for Andrews Distributing of North Texas; and
2. Adopt the attached ordinance designating Tax Abatement Reinvestment Zone No. 92, City of Fort
Worth, Texas pursuant to and in accordance with Chapter 312 of the Texas Tax Code.
DISCUSSION:
The proposed Tax Abatement Reinvestment Zone No. 92, City of Fort Worth, Texas (Zone) encompasses
certain property at and adjacent to 100 NE Loop 820 that is located entirely within the City of Fort
Worth. Andrews Distributing of North Texas (Andrews) is seeking to expand business operations and
intends to construct and operate a new distribution center. The proposed project will result in at least $37
million dollars in real and business personal property investment at the site, with a minimum of$35 million
dollars in real property improvements.
As required by Chapter 312 of the Texas Tax Code, a public hearing must be conducted regarding the
creation of the Zone. The exact boundaries of the proposed Zone are described in Exhibit A of the
attached ordinance. Notice of this hearing was delivered to the governing body of each affected taxing
unit and published in a newspaper of general circulation at least seven days prior to this hearing.
The area encompassing the proposed Zone meets the statutory criteria for designation as a Tax
Abatement Reinvestment Zone, pursuant to Chapter 312 of the Texas Tax Code, in that the area is
reasonably likely, as a result of the designation, to contribute to the retention or expansion of primary
employment or to attract major investment in the Zone that would be a benefit to the property and that
would contribute to the economic development of the City. Further, the improvements sought in the Zone
are feasible, practical and would be a benefit to the land to be included in the Zone and to the City after
any Tax Abatement Agreements, which may be entered into, have expired.
The term of the proposed Zone will be five years from the date of adoption of the attached ordinance.
The proposed Zone is located in COUNCIL DISTRICT 2.
Logname: 17ED TARIZ92 Page 1 of 2
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that approval of the above recommendation will have no material effect
on the Fiscal Year 2016 Budget. Upon approval of this designation, the long term financial impacts will be
included in the financial forecast.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by_ Jay Chapa (5804)
Originating Department Head: Robert Sturns (212-2663)
Additional Information Contact: Ossana O. Hermosillo (212-2665)
Logname: 17ED TARIZ92 Page 2 of 2
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