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HomeMy WebLinkAboutContract 48094 - bl! I;ECEfVED CITY SECRETARY CONTRACT NO. AUG 62016 TAX INCREMENT FINANCING CNOF FORT WORN FUNDING AGREEMENT Cin'SECRI:7ARY Purchase of City Park Land 1616 Hemphill, Bellevue Hill Addition, Lot 1 R, Block S This TAX INCREMENT FINANCING FUNDING AGREEMENT ("Agreement") is entered into by and between the BOARD OF DIRECTORS OF TAX INCREMENT REINVESTMENT ZONE NUMBER FOUR, CITY OF FORT WORTH, TEXAS (the "Board"), an administrative body appointed in accordance with Chapter 311 of the Texas Tax Code (the "TIF Act") to oversee the administration of Tax Increment Reinvestment Zone Number Four, City of Fort Worth, Texas, a reinvestment zone designated by ordinance of the City of Fort Worth ("City") in accordance with the TIF Act, and THE CITY OF FORT WORTH TEXAS ("City"),a Texas 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 25, 1997 the City Council adopted Ordinance No. 13259, establishing Tax Increment Reinvestment Zone Number Four, City of Fort Worth, Texas (the "TIF District"), and establishing the tax increment fund of the TIF District(the"TIF Fund"). B. On August 30, 1999 the Board adopted a project and financing plan for the TIF District, as amended by the Board on November 1, 2012 pursuant to Board Resolution No. 2012-2 (collectively the "TIF Project Plan"). The TIF Project Plan was approved by the City Council on August 31, 1999, as amended by the City Council on December 11, 2012, pursuant to Ordinance No. 20536-12-2012. C. Land has become available for purchase at 1616 Hemphill, Bellevue Hill Addition, Lot 1 R, Block S, adjacent to the current Fire Station Park(the"Project"). D. 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. Accordingly, the costs of the Project qualify as lawful "project costs," as that term is defined in Section 31 1.002(1) of the TIF Act ("Project Cost"). Accordingly, the Board is willing to provide funding for the purchase of the land solely in accordance with and pursuant to this Agreement. 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: 1. CITY'S OBLIGATIONS. City will ensure that the land purchased at 1616 Hemphill, Bellevue Hill Addition, Lot 1 R, Block S, is dedicated by the City as park land to be used for a public park. 2. FUNDING BY THE BOARD 2.1 Amount of Funding Provided that the property described in Recital C above does not require any environmental clean-up or removal of hazardous materials, and the City has complied with all terms and conditions of Agreement for 1616 Hemphill TIF Funding Agreement OFFICi between TIF District Southside TIF and The City of Fort Worth,TexasRev.06/2015 �� RECORD Page 1 of 4 CITY SECRETARY v20150617 FT. WORTH, TX this Agreement, the Board will provide funding for the property purchase as more specifically provided in this Section 2; 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 shall 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 One Million Four Hundred Twelve Thousand Three Hundred Ninety Dollars and No Cents ($1,412,390.00.)("Maximum Funding Amount") 2.2. Limited to Available TIF Funds. Notwithstanding anything to the contrary herein, City understands and agrees that the Board will be required to pay the Funding 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. 3. TERM. The term of this Agreement shall be effective as of August 3, 2016 and expire upon the earlier of (i) the complete performance of all obligations and conditions precedent by the Board and City; (ii) termination by either the Board or City as permitted by this Agreement; or (iii) termination of the TIF District in accordance with Section 311.017 of the TIF Act. 4. DEFAULT. If either party defaults under any provision of this Agreement, the non-defaulting party shall provide the defaulting party with a written notice that specifies the nature of the default. The defaulting party shall have thirty (30) calendar days following receipt of such written notice to cure the default. After such time, if the default remains uncured,the non-defaulting party may, at its option, terminate this Agreement and/or pursue any and all other available remedies without the necessity of further notice to or demand upon the defaulting party; provided that(i) if the defaulting party proceeds in good faith and with due diligence to cure the default within thirty (30) calendar days, but reasonably needs additional time to cure the default fully,then the non-defaulting party shall not be entitled to pursue the above remedies, and (ii) if the non-defaulting party elects to terminate this Agreement as a remedy for default, it shall notify the defaulting party in writing. 5. 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. 6. 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: Agreement for 1616 Hemphill TIF Funding Agreement between TIF District Southside TIF and The City of Fort Worth,TexasRev.06/2015 Page 2 of 4 v20150617 Board: City: Board of Directors Jesus "Jay" Chapa Southside TIF Assistant City Manager Attn: Paul F. Paine,Administrator 1000 Throckmorton 1606 Mistletoe Boulevard Fort Worth, TX 76102 Fort Worth, TX 76104 with a copy to: City of Fort Worth Attn: Robert Sturns, Director of Economic Development 1150 South Freeway Fort Worth, TX 76104 7. VENUE AND JURISDICTION. 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. 8. 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"). 9. 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. 10. 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. 11. 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. Agreement for 1616 Hemphill TIF Funding Agreement between TIF District Southside TIF and The City of Fort Worth,TexasRev.06/2015 Page 3 of 4 v201506I7 12. 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,TEXAS INCREMENT REINVESTMENT a Texas municipality ZONE NUMBER TIF FOUR, CITY OF FORT WORTH,TEXAS: By: By. Ann Zadeh Jesus"Jay"Chapa Chairman Assistant City Manager APPROVED 4flarri FO LEGALITY: QRr , B - ® ® Ma es mer A by. Senior Assistant City Attorney Resolution No. 2015-09-A 1 Date of Board Approval: August 3, 2016 Mary ' K city NO M&C, REQUIRED OFFICIAL RECORD CITY SECRETARY FT.WORTH,TX Agreement for 1616 Hemphill TIF Funding Agreement between TIF District Southside TIF and The City of Fort Worth,TexasRev.06/2015 Page 4 of 4 v20150617 Resolution: 2015-09-Al Date: August 3,2016 RESOLUTION Board of Directors Tax Increment Reinvestment Zone Number Four,City of Fort Worth,Texas (Southside TIF) AMENDING RESOLUTION2015-9 AUTHORIZING EXECUTION OFA TAX INCREMENT FINANCING (TIF) FUNDING AGREEMENT BETWEEN THE BOARD OF DIRECTORS OF TAX INCREMENT REINVESTMENT ZONE NUMBER FOUR, CITY OF FORT WORTH, TEXAS,AND THE CITY OF FORT WORTH FOR THE PURCHASE OF PROPERTY TO BE USED AS PARK LAND LOCATED AT 1616 HEMPHILL STREET. WHEREAS, the Board of Directors (the "Board") of Tax Increment Reinvestment Zone Number Four, City of Fort Worth, Texas (the "TIF District") desires to promote the development and redevelopment of the Southside Development District area as authorized by the Fort Worth City Council and state law;and WHEREAS, on August 30, 1999 the Board adopted a Project and Financing Plan (the "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, and which was subsequently updated by the Board November 1, 2012, and approved by City Council December 11, 2012; and WHEREAS, in accordance with Section 311.010 of the Texas Tax Code, the Board may use TIF revenue only for the types and kinds of projects set forth in the Plan; and WHEREAS,the Plan identifies public improvements that benefit the general public and facilitate development of the TIF district as an eligible expense;and WHEREAS,consistent with the Plan,the Board may approve a Tax Increment Financing Funding Agreement for the purchase of park land; and WHEREAS, on May 27, 2015, the Board approved a resolution authorizing a Tax Increment Financing Funding Agreement with the City of Fort Worth in an amount not to exceed $1.2 million to use tax increment to fund or reimburse the cost of purchase of land to be used as park land at 1616 Hemphill Street, Fort Worth, Texas (the "Property"); and WHEREAS, the Board now wishes to approve an increase in the amount of tax increment to be used for the purchase of the Property;NOW THEREFORE,BE IT RESOLVED: Section 1.That the Board hereby authorizes execution of a Tax Increment Financing Funding Agreement with the City of Fort Worth for purchase of property to be used as park land located at 1616 Hemphill Street. Section 2. That Resolution 2015-9 is hereby amended to authorize the use of tax increment to fund or reimburse the cost of such purchase in an amount not to exceed$1,412,390.00. Section 3. That the Agreement shall specify that the property be dedicated by the City of Fort Worth to be used as park land. Resolution: 2015-09-Al Date: August 3,2016 Section 4. That the Board's obligation to authorize TIF funding to be used to purchase the Property is subject to the Property not requiring any environmental clean-up or removal of hazardous material, as determined by the City. Section 5. That no part of the TIF funds used to the purchase Property shall be from the County's increment. Section 6. That the Chairperson of the Board is authorized to sign this Resolution on the Board's behalf and execute all necessary agreements and related documents in accordance with this Resolution. Section 7.That this-Resolution shall take effect immediately from and after its passage. Approved: (N► UAL' Ann Zade ,Chair