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Home My WebLink AboutCP 232 CIT FO WO , TEXAS o o 0� o COUNCIL PROPOSAL Date: File Number: Subject:Authorize Execution of a Community Facilities Agreement with Beechwood Business Park 7/23/03 232 Joint Venture for Reimbursement of Advance Funding for Construction of Harriet Creek Bridge on a Connector Road between FM 156 and SH114 Proposed By:Jim Lane City Manager's Review: Paye: City Attorney's Review: PAGE 1 OF 4 PROPOSAL It is proposed that the City Council direct the City Manager to execute a Community Facilities Agreement with Beechwood Business Park Joint Venture for reimbursement of advance funding by Beechwood for the OW construction of the Harriet Creek Bridge on a connector road between FM 156 and SH 114. DISCUSSION: Beechwood Business Park Joint Venture (`Beechwood") is a Texas entity. Beechwood owns approximately 600 acres in north Fort Worth that it desires to develop for residential, commercial and retail uses. Alliance Airport is located on Beechwood's southern border, while the Texas Motor Speedway is located on Beechwood's northern boundary. The property is bounded by SH-114 on the north and FM-156 on the west. The phase of the development in question (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 in Exhibit "A", attached hereto) (the "Source Property") consists of approximately 306 acres zoned for single- family development and approximately 45 acres zoned for commercial/retail development. Development of the property in question necessitates the construction of the Harriet Creek Bridge in the location depicted in Exhibit "A". Standard City of Fort Worth development policy provides that the City will pay approximately 95% of the cost of such a bridge, provided "funds are available." Because the City does not currently have all of the funds necessary to proceed with the construction of the Harriet Creek Bridge under the City's Community Facilities Policy, Beechwood has volunteered to advance those funds so that the construction project may proceed as planned. The anticipated cost distribution for this construction project is noted below: Developer Funds = $ 111,375.00 City Funds = $2,116,125.00 Total Funds = $2,275,000.00 On July 15, 2003 (M&C G-14031) the City Manager requested direction as to the extent that the City Council wished to fund such infrastructure and as to a funding recommendation. After consultation with the City Council, it is believed that an appropriate funding mechanism tracks previous City Council action, except that Beechwood will be reimbursed only 95%of the costs of construction of this infrastructure and that no interest will be paid to Beechwood as part of such reimbursement. LEGALITY i.J FISCAL NOTE ❑ CITY MANAGER'S COMMENTS ❑ CITY POLICIES MANUAL CIT FO WO TEXAS �. COUNCIL PROPOSAL Date:7129103 File Number: Subject: Authorize Execution of a Community Facilities Agreement with Beechwood Business Park Joint Venture for Reimbursement of Advance Funding for Construction of Harriet Creek Bridge on a Connector Road between FM 156 and SH114 Proposed By:Jim Lane City Manager's Review: Page: PAGE 2 OF 4 FUNDING MECHANISM: In order for the City to reimburse Beechwood for 95%of any funds advanced by Beechwood for the construction of the Harriet Creek Bridge, the City must create a sinking fund and, once the obligation to repay the debt arises, deposit into that sinking fund each year an amount equal to at least 2% of the amount owed to Beechwood (approximately $40,000). Each year during the term of the proposed agreement, the City will take from its General Fund a sum equal to the property tax increment revenue received in that year from the Source Property and deposit that sum into the sinking fund. The increment will be based on the increase in value of the Source Property since the 2003 tax year. The City's obligation to reimburse Beechwood will begin in the year in which the Source Property generates tax increment (including any rollback taxes) equal to at least 2% of the 95% of funds advanced by Beechwood for construction of the Harriet Creek Bridge. In that and each subsequent year,the City will reimburse Beechwood in installments that are equal to the amount of revenue deposited into the sinking fund. If in any year the amount of revenue deposited into the sinking fund is less than 2% of the City's debt to Beechwood at the time,the City will transfer additional funds from other legally available sources into the sinking fund in order to pay Beechwood an installment that is equal to 2%of the debt. However, the City will be entitled to reimburse itself in subsequent years when the Source Property tax increment exceeds 2% of the City's debt to Beechwood. Beechwood is to be the sole beneficiary of any reimbursement due under this agreement. No other owner or developer of the Source Property will have any entitlement at any time. Beechwood must perform according to this agreement to be reimbursed for its expenditures. This agreement will terminate on the earlier of(i)the date as of which Beechwood has been fully reimbursed by the City or(ii)December 31,2012. The debt created hereunder will bear no interest. DEVELOPMENT SCHEDULE: The following is the anticipated construction schedule: LEGALITY -J FISCAL NOTE ❑ CITY MANAGER'S COMMENTS 13 CITY POLICIES MANUAL CIT FO WO , TEXAS 0 0 �� a COUNCIL PROPOSAL Date:7129103 File Number: Subject: Authorize Execution of a Community Facilities Agreement with Beechwood Business Park Joint Venture for Reimbursement of Advance Funding for Construction of Harriet Creek Bridge on a Connector Road between FM 156 and SH114 Proposed By:Jim Lane City Manager's Review: Page: PAGE 3 OF 4 PROJECT ANTICIPATED LETTING DATE Construct Harriet Creek Bridge October 2003 This project is located in COUNCIL DISTRICT 2. LEGALITY: The City Attorney finds that this proposal is legal and within the authority of the City Council, but asks that the City Council note the concerns expressed in M&C G-14031. FISCAL NOTE: The effect of this Council Proposal will have no material effect on City funds at this time. CITY MANAGER'S COMMENT: The City Manager's comments to this proposal are the same as those set forth in M&C G-14031. LEGALITY 61 FISCAL NOTE 0 CITY MANAGER'S COMMENTS 0 CITY POLICIES MANUAL CIT FO WO , TEXAS G COUNCIL PROPOSAL Date:7(29103 File Number: Subject: Proposed By:Jim Lane City Manager's Review: Page4 of 4 a... Councilmember District 2 ouncilmember District LEGALITY J FISCAL NOTE ❑ CITY MANAGER'S COMMENTS ❑ CITY POLICIES MANUAL 1, _ 6 r � r v F a M - 'r