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Home My WebLink AboutCP 231 1 b CIT FO WO , TEXAS 0 ❑ COUNCIL PROPOSAL Date: File Number: Subject:Adoption of Ordinance Increasing the Amount of Tax Increment that the City will Deposit into 7/29/03 231 the Tax Increment Fund of Tax Increment Reinvestment Zone Number Two,City of Fort Worth,Texas (Speedway TIF) Proposed By:Chuck Silcox City Manager's Review: Page: City Attorney's Review: PAGE 1 OF 3 PROPOSAL It is proposed that the Fort Worth City Council adopt the attached Ordinance authorizing the City to increase its level of participation in Tax Increment Reinvestment Zone Number Two, City of Fort Worth,Texas("Speedway ,ice TIF")solely on the following terms and conditions: 1. In addition to the City's current level of participation in the Speedway TIF, each year beginning with the first full tax year following completion of the Bridge construction project described in paragraph 2 below, the City will contribute the lesser of(i) 100%of the TIF 2B property tax increment or (ii) an amount of that increment equal to the increase in real property tax revenue levied and collected from Tracts C-la,C- lb, W-2, W-5a, W-5b, C-lc, C-ld, C-2, W-1, W-3, and W-4, which are located outside the TIF and are shown on Exhibit "A" of the attached Ordinance (collectively, the "Source Property"), over their collective value for the 2003 tax year. 2. The City will contribute increment as provided in paragraph 1 hereof only on the condition (i) that the TIF's Board of Directors enters into an agreement with Beechwood Business Park Joint Venture (Beechwood) under which the TIF will reimburse Beechwood for the cost of construction of a bridge in the location depicted in Exhibit "A" of the attached Ordinance (the `Bridge"), in annual installments equal to the amount of the City's contribution to the TIF in the same year attributable to TIF 2B, up to a maximum aggregate of$1,718,949 (whether or not Beechwood is entitled to receive interest under such agreement), with the first annual installment payable in the first full tax year following completion and opmk acceptance of the Bridge by the City, and (ii)that the Bridge be completed and accepted by the City by not later than December 31,2006. 3. The City's contribution of increment to the TIF as provided in paragraph 1 hereof shall expire upon the earlier of(i) 10 years from the date of completion of the Bridge and its acceptance by the City,provided that the Bridge is completed and accepted by the City on or before December 31,2006, or(ii)the date as of which Beechwood has received its full reimbursement of$1,718,949 or (iii) expiration or termination of the TIF's agreement with Beechwood for any reason or(iv)the date as of which all or any portion of the Source Property is developed in a manner that is inconsistent with the zoning on such property in effect on July 29, 2003. The City will not contribute increment to the TIF as provided in paragraph 1 hereof if the Bridge has not been completed and accepted by the City by December 31,2006. DISCUSSION: Beechwood has requested public funding for the construction of a Bridge over Harriet Creek in the western portion of the Beechwood Business Park,as depicted in Exhibit"A"of the attached Ordinance. LEGALITY Li FISCAL NOTE ❑ CITY MANAGER'S COMMENTS ❑ CITY POLICIES MANUAL CIT FO WO , TEXAS ON COUNCIL PROPOSAL Date:7129103 File Number: Subject: Adoption of Ordinance Increasing the Amount of Tax Increment that the City will Deposit into the Tax Increment Fund of Tax Increment Reinvestment Zone Number Two,City of Fort Worth,Texas (Speedway TIF) Proposed By:Chuck Silcox City Manager's Review: Page: PAGE 2 OF 3 TIF 2, the Speedway TIF, was designated pursuant to Ordinance No. 12323, adopted by the City Council on December 19, 1995. The City Council expanded the Speedway TIF pursuant to Ordinance No. 13889,adopted by the City Council on August 10, 1999. The property included in the original boundary of the TIF.is referred to TIF 2A and the property in the expanded area is referred to as TIF 2B. Portions of the Beechwood Business Park were included in TIF 2B, including the area in which the subject bridge is proposed to be built. The City currently contributes tax increment to the TIF generated by property in TIF 2A, but does not contribute any tax increment generated by property in TIF 2B. By adopting the attached Ordinance, the City of Fort Worth will contribute increment into TIF 2B solely on the conditions outlined herein. The base value of the property in TIF 2B is $3,413,543., compared to current taxable value, $25,443,355. Therefore, it is estimated that the annual increment contributed by the City of Fort Worth will be approximately$190,558. Taxable Value—2003 $25,443,355 Less:Base Value (3,413,543) Captured Taxable Increment $22,029,812 $22,029,812 x .865 (per$100)_$190,588 The actual contribution may vary and is subject to the terms provided for in the attached Ordinance and changes in the taxable value of the property in TIF 2B..The City's total contribution of increment into TIF 2B shall be limited to ten years or the lesser of$1,718,949 or the actual cost of constructing the Bridge. The City's annual increment will be the lesser of the increment generated by 2B or the actual real property taxes levied and collected on the Source Property. In addition,as a condition of the City's participation in TIF 2B,the Source Property must be developed in accordance with the zoning that is currently in place. LEGALITY: The City Attorney finds that this proposal is legal and within the authority of the City Council. FISCAL NOTE: The effect of this Council Proposal will adversely impact the general fund in an amount equal to the amount of the City's contribution to TIF 2B. I LEGALITY ❑ FISCAL NOTE ❑ CITY MANAGER'S COMMENTS 0 CITY POLICIES MANUAL CIT FO WO , TEXAS COUNCIL PROPOSAL Date:7/29103 File Number: Subject: Adoption of Ordinance Increasing the Amount of Tax Increment that the City will Deposit into the Tax Increment Fund of Tax Increment Reinvestment Zone Number Two,City of Fort Worth,Texas (Speedway TIF) Proposed By:Chuck Silcox City Manager's Review: Page: PAGE 3 OF 3 CITY MANAGER'S COMMENT: This Council Proposal is proposing using TIF revenue in support of single family development and as such sets a nepr cedent for the use of TIF revenue. Staff is unaware of the use of TIF financ' g to support an ther sin le- mily developments. Councilmember District 2 ouncilmember Distfict 3 j-rhdra W CITY COUNCL JUL 29 2003 City Cit: Fort s LEGALITY J FISCAL NOTE ❑ CITY MANAGER'S COMMENTS ❑ CITY POLICIES MANUAL ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE NO. 13889 BY INCREASING THE AMOUNT OF TAX INCREMENT THAT THE CITY OF FORT WORTH WILL DEPOSIT INTO THE TAX INCREMENT FUND OF TAX INCREMENT REINVESTMENT ZONE NUMBER TWO, CITY OF FORT WORTH, TEXAS (SPEEDWAY TIF); PROVIDING THAT THIS ORDINANCE IS CUMULATIVE; REPEALING ALL ORDINANCES AND SECTIONS OF ORDINANCES IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, pursuant to Ordinance No. 12323, adopted by the City Council on December 19, 1995, the City Council designated certain property specified in such Ordinance (the "TIF 2A Property") as Tax Increment Financing Reinvestment Zone Number Two, City of Fort Worth,Texas(Speedway TIF)(the"Zone"); and OOW WHEREAS, pursuant to Ordinance No. 13889, adopted by the City Council on August 10, 1999, the City Council expanded the boundary of the Zone by adding certain property specified in such Ordinance(the"TIF 2B Property"); and WHEREAS, in accordance with Ordinance No. 13889, the City of Fort Worth (the "City") has been depositing into the Zone's tax increment fund (the "TIF Fund") the City's tax increment generated by the TIF 2A Property, but has not deposited into the TIF Fund any tax increment generated by the TIF 2B Property; and WHEREAS, the City Council now wishes to facilitate additional development within the Zone by increasing revenues in the TIF Fund through deposits by the City of certain tax increment generated by the TIF 2B Property solely in accordance with the terms and conditions of this Ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,TEXAS: Section 1. DEPOSITS OF TAX INCREMENT TO THE TIF FUND. That Section 7 of Ordinance No. 13889 is hereby amended to provide that the City will deposit into the TIF Fund one hundred percent (100%) of the tax increment generated by the TIF 2A Property for the term of the Zone, and beginning with the first full tax year following completion of a bridge constructed by Beechwood Business Park Joint Venture ("Beechwood") or a contractor of Beechwood in accordance with an agreement with the Zone's board of directors(the"TIF Agreement") and at the location shown in Exhibit"A" (the "Bridge"), which is attached hereto and hereby made a part of this Ordinance for all purposes, and conditioned on completion of the Bridge and its acceptance by the City on or before December 31, 2006, the City will deposit into the TIF Fund the lesser of(i) one hundred percent (100%) of the tax increment generated by the TIF 2B Property or (ii) an amount of the tax increment generated by the TIF 2B Property equal to the increase in real property tax revenue levied and collected by the City from Tracts C-la, C-lb, W-2, W-5a, W-5b, C-lc, C-ld, C-2, W-1, W-3 and W-4, as shown on Exhibit "A" (the "Source Property"),over their collective value for the 2003 tax year,until the earlier of(a) 10 years following the year in which the Bridge was completed and accepted by the City, or(b) the date as of which Beechwood has been reimbursed$1,718,949(whether or not Beechwood is entitled to receive interest under the TIF Agreement), or(c) the effective date of expiration or termination of the TIF Agreement for any reason, or (d) the date as of which all or any portion of the Source Property is developed in a manner that is inconsistent with the zoning on such property in effect on July 29, 2003. Notwithstanding anything that may be interpreted to the contrary in this Ordinance,the City will not deposit into the TIF Fund any tax increment generated by the TIF 2B Property if the Bridge has not been completed by Beechwood or a contractor of Beechwood and accepted by the City by December 31,2006. Section 2. CUMULATIVE EFFECT AND REPEAL OF CONFLICTING ORDINANCE PROVISIONS. That this Ordinance shall be cumulative of all ordinances of the City, except where the provisions of this Ordinance are in direct conflict with the provisions of such other ordinances, in which case the conflicting provisions of such other ordinances are hereby repealed. Section 3. 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. r► Section 4. EFFECTIVENESS. That this Ordinance shall take effect and be in full force and effect from and after its adoption. AND IT IS SO ORDAINED. ADOPTED AND EFFECTIVE: r APPROVED AS TO FORM AND LEGALITY: By:_ . Peter Vaky Assistant City Attorney C.P. No. 7. Ilk . � d ..� . - _ ij �t [ �■ �/ , � �/ . � , - � I � . i - � . Q \ � - • \ . ° \ \ � � • a % - . :