HomeMy WebLinkAboutOrdinance 22473-10-2016 ORDINANCE NO. 22473-10-2016
AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE
CITY OF FORT WORTH AS "TAX ABATEMENT
REINVESTMENT ZONE NUMBER 90A, 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 June 28, 2016 of
Resolution No. 4647-06-2016 (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 real
property located at 14101 and 14217 Independence Parkway in the City, as more
specifically depicted in Exhibit "A" of this Ordinance (the "Zone"), through the creation
of a reinvestment zone for purposes of granting a tax abatement, as authorized by and in
accordance with Chapter 312 of the Code; and
WHEREAS, Winner, LLC ("Company") wishes to construct a new Facebook
data center or centers on property in the Zone, with a minimum expenditure of at least
$250 million in real and business property improvements (collectively, the
"Improvements"); and
Ordinance Designating Tax Abatement Reinvestment Zone Number 90A, Ordinance No.22473-10-2016
City of Fort Worth,Texas Page 1 of 6
WHEREAS, the Zone is adjacent to that real property designated as Tax
Abatement Reinvestment Zone No. 90, City of Fort Worth, Texas (the "Initial Zone");
and
WHEREAS, the City previously granted Company a tax abatement on property
and improvements located in the Initial Zone in return for Company's construction of a
data center on such property, with a minimum expenditure of at least $250 million in real
and business property improvements, as set forth in that certain Tax Abatement
Agreement on file in the City Secretary's Office as City Secretary Contract No. 46727;
and
WHEREAS, Company expects that the overall project in the Zone and the Initial
Zone will create at least 40 new jobs; and
WHEREAS, the Improvements planned for the Zone will complement that
portion of the project constructed in the Initial Zone; and
WHEREAS, on October 18, 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 October 9, 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
Ordinance Designating Tax Abatement Reinvestment Zone Number 90A, Ordinance No.22473-10-2016
City of Fort Worth,Texas Page 2 of 6
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:
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:
1.1. 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 in excess of ten (10)
Ordinance Designating Tax Abatement Reinvestment Zone Number 90A, Ordinance No.22473-10-2016
City of Fort Worth,Texas Page 3 of 6
years, which is the statutory maximum term 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.
Section 2.
DESIGNATION OF ZONE.
That the City Council hereby designates the Zone described herein and depicted
in the map attached hereto as Exhibit "A" and made a part of this Ordinance for all
purposes as a reinvestment zone for purposes of granting a commercial-industrial 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 90A, City of Fort Worth,
Texas." This project is eligible for commercial/industrial tax abatement pursuant to
Section 4.1 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 of five (5) years or less.
Ordinance Designating Tax Abatement Reinvestment Zone Number 90A, Ordinance No.22473-10-2016
City of Fort Worth,Texas Page 4 of 6
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.
Section 5.
IMMEDIATE EFFECT.
That this Ordinance shall take effect upon its adoption.
APPROVED AS TO FORM AND LEGALITY:
i
r
Peter Vaky, Mary J. Ka ,
Deputy City Attorney City Secretary
M&C: G-18858
ADOPTED AND EFFECTIVE: October 18, 2016
Ordinance Designating Tax Abatement Reinvestment Zone Number 90A, Ordinance No.22473-10-2016
City of Fort Worth,Texas Page 5 of 6
EXHIBIT "A"
MAP DEPICTING ZONE
Tax Abatement Reinvestment Zone No. 90A
14217 Independence Parkway & 14101 Independence Parkway
Fort Worth, TX, 76177
"Exhibit A-1"
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Copyright 2016 City of Fort Worth.Unauthorized reproduction is a violation of applicable laws.This product is for informational purposes and may not have been
prepared for or be suitable for legal,engineering,or surveying purposes.It does not represent an on-the-ground survey and represents only the approximate relative
location of property boundaries.The City of Fort Worth assumes no responsibility for the accuracy of said data.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 10/18/2016 - Ordinance No. 22473-10-2016
DATE: Tuesday, October 18, 2016 REFERENCE NO.: G-18858
LOG NAME: 17ED TARIZ90-A
SUBJECT:
Conduct a Public Hearing and Adopt Ordinance Designating Tax Abatement Reinvestment Zone No. 90A,
City of Fort Worth, Texas, for Property Located at 14217 and 14101 Independence Parkway and Amend
Tax Abatement Agreement, City Secretary Contract No. 46727, to Include Such Additional Property
(COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council:
1. Conduct a public hearing concerning the designation of Tax Abatement Reinvestment Zone No. 90A,
City of Fort Worth, Texas, for property located at 14217 and 14101 Independence Parkway;
2. Adopt the attached ordinance for the designation of Tax Abatement Reinvestment Zone No. 90A, City
of Fort Worth, Texas, pursuant to and in accordance with Chapter 312 of the Texas Tax Code; and
3. Amend Tax Abatement Agreement with Winner, LLC, City Secretary Contract No. 46727, to reflect
that the property subject to abatement under the Agreement includes the property located in Tax
Abatement Reinvestment Zone No. 90A, City of Fort Worth, Texas.
DISCUSSION:
On May 19, 2015 the City Council adopted Ordinance No. 21757-05-2015, designating Tax Abatement
Reinvestment Zone No. 90, City of Fort Worth, Texas, and approved execution of a Tax Abatement
Agreement with Winner LLC (City Secretary Contract No. 46727). Under the Tax Abatement Agreement,
the City has agreed to abate 10 percent of the incremental ad valorem taxes on real and business
personal property owned by Winner LLC (Company) provided that Company expended at least
$250,000,000.00 on construction and equipment of a Facebook data center located on property in the
reinvestment zone.
The Tax Abatement Agreement also provides a mechanism for Company to acquire additional land
adjacent to the site in order to expand the project footprint. Company has announced that it wishes to
construct additional data center improvements on property it has since acquired at 14101 and 14217
Independence Parkway. This land is adjacent to the current reinvestment zone. In order for this property
to be covered under the Tax Abatement Agreement, as allowed under the Agreement, the City Council
must also designate this property as a reinvestment zone.
As required by Chapter 312 of the Texas Tax Code, a public hearing must be conducted regarding the
creation or expansion of a Reinvestment 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.
Logname: 17ED TARIZ90-A Page 1 of 2
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 likely,
as a result of the designation, to contribute to the expansion of the Company's 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 the existing Tax Abatement Agreement to be
amended, has expired.
The term of the proposed Zone will be five years from the date of adoption of the attached ordinance and
may be renewed for periods not to exceed five years each.
The property included in the City of Fort Worth Reinvestment Zone No. 90 consists of a 110 acre tract,
with an established base year of 2015. The 40-acre tract of land to be included in the expanded City of
Fort Worth Reinvestment Zone No. 90A, will establish base year of 2016 for improvements that occur
within this zone. Staff recommends the expansion of Reinvestment Zone No. 90A and amending City
Secretary Contract No. 46727 to establish dual base years in the Tax Abatement Agreement.
The proposed Zone is located in COUNCIL DISTRICT 7, Mapsco 9J.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that approval of this Agreement will have no material effect on the Fiscal
Year 2017 budget. While no current year impact is anticipated from this action, any effect on expenditures
and revenues will be budgeted in future fiscal years and will be included in the long-term 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 Hermosillo (212-2665)
Logname: 17ED TARIZ90-A Page 2 of 2