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HomeMy WebLinkAboutResolution 4706-12-2016 A Resolution NO. 4706-12-2016 DIRECTING THE CITY MANAGER TO PREPARE AND PRESENT FOR CITY COUNCIL CONSIDERATION ON OR BEFORE MARCH 31, 2017 DOCUMENTS TO ALLOW FOR ISSUANCE OF DEBT OBLIGATIONS TO PROVIDE THE BALANCE OF THE CITY'S MAXIMUM CONTRIBUTION OF $225,000,000 TOWARD COSTS OF A NEW MULTI-PURPOSE ARENA AND ADJACENT SUPPORT FACILITIES; DIRECTING PREPARATION AND PRESENTATION OF ORDINANCES TO LEVY VOTER-APPROVED VENUE TAXES IN SUPPORT OF SUCH OBLIGATIONS; EXPRESSING INTENT TO AUTHORIZE ISSUANCE AND SALE OF BONDS BEFORE JULY 1, 2017; AND ORDAINING MATTERS RELATED THERETO WHEREAS, following multiple studies evaluating the event-and-entertainment venue needs of the citizens of and visitors to the City of Fort Worth, the City determined that it would be in the best interests of the City to build a new multi-purpose arena facility at a location in the cultural district; and WHEREAS, completion of such a facility is a key element in a larger overall project that will allow for demolition of the nearly half-century old arena facility at the Fort Worth Convention Center and the development of replacement facilities that better serve the desires of those who live in and visit the City; and WHEREAS, Event Facilities Fort Worth, Inc. ("Event Facilities"), is a non-profit corporation that supports the Southwestern Exposition and Livestock Show, d/b/a Fort Worth Stock Show & Rodeo, and has a proud history of making valuable contributions that enhance and benefit the lives of the City and its people; and WHEREAS, Event Facilities has, as a charitable contribution to the City, committed to raising fifty percent of the budget for the new arena complex as well as overruns, with the City's total contribution toward the costs of developing and constructing the new arena complex set at an amount not to exceed $225,000,000; and WHEREAS, the City Council has previously taken action to facilitate financing of the new arena, to-wit, the designation and creation of a project financing zone that allows incremental growth in certain state hotel-related tax revenues in a portion of the City to be directed for use in developing the arena and redevelopment of the Convention Center (M&C G-18048); the designation of the multi-purpose arena, adjacent support facilities and related infrastructure (collectively the "Arena Project") as a venue project, and the conducting of an election (the "Election") at which voters overwhelmingly approved the Arena Project and the establishment of venue taxes on parking, tickets, and FoRTWoRTH livestock stalls/pens as methods of financing the project (Resolution 4327-07-2014; Ordinance 21374-08-2014; Resolution 4378-11-2014); the establishment of a funding plan for the City's portion of the costs for the Arena Project (Resolution 4498-08-2015); and the designation of a portion of incremental growth in City hotel-related tax revenues for use on special projects such as the Arena Project (M&C G-18614); and WHEREAS, City's expenditures to-date for and in support of the Arena Project total approximately $25,000,000, meaning that approximately $200,000,000 in additional funds are needed for the City to meet its total funding commitment for the Arena Project; and WHEREAS, the City Council anticipates issuing obligations secured by designated sources, other than ad valorem taxes, to provide the balance of the City's contribution (the "Bonds"); and WHEREAS, financial projections and modeling indicate that available resources, including a pledge of and/or payment from the City's hotel occupancy tax, D/FW Airport revenue sharing proceeds, projected revenues from the project financing zone, estimated available revenues in the Culture and Tourism Fund, and future venue-tax receipts, will be sufficient to support the issuance of the Bonds, anticipated to occur during the first half of 2017; and WHEREAS, in light of the complexities involved in preparing and marketing Bonds secured by and payable from such a wide variety of revenue sources, the sale of the Bonds through a negotiated sale with one or more bond underwriters is desirable; and WHEREAS, the Fort Worth City Council by the adoption of this Resolution expresses its intent to issue Bonds and provide timely funding of the balance of the City's portion of the Arena Project cost so that Event Facilities and its contractors and subcontractors have assurance of the City's commitment. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: 1. That the City Manager and his staff are directed to proceed with engaging and authorized to execute agreements with one or more investment banking firms to assist with and facilitate successful issuance, marketing, and sale of the Bonds that will produce proceeds, net of underwriter fees and other costs of issuance, that, when combined with the City's prior expenditures on and in support of the Arena Project, result in satisfying the City's commitment to contribute $225,000,000.00 for the Arena Project, with compensation of the underwriters being payable from the gross proceeds of the Bonds. 2. That the City Manager and his staff are directed to proceed in preparing any and all documents necessary to issue, market, and sell the Bonds. 3. That the City Manager is directed to prepare and to present for the City ORT WO Council's consideration, on a date that is no later than March 31, 2017, one or more instruments to authorize issuance and sale of the Bonds. 4. That staff is instructed to prepare and present for City Council consideration, on a date that is no later than March 31, 2017, one or more ordinances to levy venue taxes in support of the Bonds consistent with the results of the Election. 5. That the City Council hereby expresses its firm commitment to authorizing the issuance of the Bonds in 2017, with the sale to be consummated, subject to then-prevailing conditions in the municipal debt markets, on or before July 1, 2017, and the proceeds therefrom to be made available for funding the City's contribution toward the construction of the Arena Project. Adopted this 6th day of December 2016. 000asap IFORr 4 °i0gyp 0 Od ATTEST: Ov =v Ma J. ayser, City Secretary ORT WO