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HomeMy WebLinkAboutOrdinance 22555-12-2016 ORDINANCE NO. 22555-12-2016 AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE CITY OF FORT WORTH AS "TAX ABATEMENT REINVESTMENT ZONE NUMBER NINETY-FOUR, 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 area in the City more specifically described in Exhibit "A" of this Ordinance (the "Zone") through the creation of a reinvestment zone for purposes of granting a business expansion tax abatement, as authorized by and in accordance with Chapter 312 of the Code; and WHEREAS, Pure Renewables USA, LLC ("Company") wishes to expend or cause to be expended at least $9.5 million in real property improvements for the occupancy of a new office and manufacturing space to be located in the Zone, and Company intends to install new taxable tangible business personal property in the facility having a value of at least $250 million (collectively,the "Improvements"); and WHEREAS, Company has applied for business personal property tax abatements from the City in return for the installation of the Improvements in the Zone and compliance with Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety-four, City of Fort Worth,Texas Ordinance No.22555-12-2016 Page 1 of 6 certain other employment and spending commitments that will foster economic development in the Zone and the City in general; and WHEREAS, on December 13, 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 December 4, 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 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: Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety-four. City of Fort Worth,Texas Ordinance No. 22555-12-2016 Page 2 of 6 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 of five (5) years, with an option to extend for not more than an additional five, but not to exceed ten (10) 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 in the boundary description attached hereto as Exhibit "A" and made a part of this Ordinance for all purposes as a reinvestment zone for purposes of granting business expansion 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 Ninety-four, City of Fort Worth, Texas." This project is eligible for commercial/industrial tax abatement pursuant to Section 4 of the Tax Abatement Policy. Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety-four, City of Fort Worth,Texas Ordinance No.22555-12-2016 Page 3 of 6 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 not to exceed five years. 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: By: Peter Vaky, Mary J. se Deputy City Atto y City Sec M&C: G-18918 ADOPTED AND EFFECTIVE: December 13, 2016 Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety-four, City of Fort Worth,Texas Ordinance No.22555-12-2016 Page 4 of 6 EXHIBIT "A" BOUNDARY DESCRIPTION OF ZONE DESCRIPTION BEING A TRACT OF LAND SITUATED IN THE GREENBERRY OVERTON SURVEY, ABSTRACT NUMBER 1185, TARRANT COUNTY, TEXAS, AND BEING ALL OF THAT TRACT OF LAND DESCRIBED BY DEED TO WESTPORT PARK NO. 18, LTD RECORDED IN INSTRUMENT NUMBER D215241296, COUNTY RECORDS, TARRANT COUNTY, TEXAS AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT A 5/8 INCH IRON ROD STAMPED "CARTER & BURGESS" FOUND AT THE SOUTHEAST CORNER OF THAT TRACT OF LAND DESCRIBED BY DEED TO ALLIANCE CENTER-WEST ASSOCIATION RECORDED IN INSTRUMENT NUMBER D202070490, AND BEING THE NORTHEAST CORNER OF THE REMINDER OF THAT TRACT OF LAND DESCRIBED BY DEED TO AIL INVESTMENT L.P. RECORDED IN INSTRUMENT NUMBER D198304926, BOTH OF SAID COUNTY RECORDS, AND BEING IN THE WEST LINE OF THAT TRACT OF LAND DESCRIBED IN TRANSFER OF RIGHT-OF-WAY (OLD STATE HIGHWAY 156) TO THE CITY OF FORT WORTH, RECORDED IN INSTRUMENT NUMBER 2010-125544 OF REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS; THENCE S 89015'41"W, WITH SAID NORTH LINE, AT 125.02 FEET A 5/8 INCH IRON ROD WITH PLASTIC CAP STAMPED "PELOTON", FOUND AT THE SOUTHWEST CORNER OF SAID ALLIANCE CENTER-WEST TRACT, IN ALL 515.98 FEET, CONTINUING WITH SAID NORTH LINE, TO A 5/8 INCH IRON ROD WITH PLASTIC CAP STAMPED "PELOTON" SET FOR THE POINT OF BEGINNING AT THE SOUTHEAST CORNER OF AFOREMENTIONED WESTPORT PARK NO.18 TRACT; THENCE S 89 015'41"W, 1417.51 FEET, CONTINUING WITH THE NORTH LINE OF SAID REMAINDER AND THE SOUTH LINE OF SAID WESTPORT NO. 18 TRACT TO A 5/8 INCH IRON ROD WITH PLASTIC CAP STAMPED "PELOTON" SET IN THE EAST RIGHT-OF-WAY LINE OF STATE HIGHWAY 156 (A VARIABLE WIDTH RIGHT-OF- WAY) RECORDED IN INSTRUMENT NUMBER D210076725, SAID COUNTY RECORDS, FROM WHICH A TEXAS DEPARTMENT OF TRANSPORTATION (TXDOT) MONUMENT FOUND BEARS S 04°03'40"E, 69.98 FEET; THENCE N 04 003'31"W, 1692.75 FEET WITH SAID EAST RIGHT-OF-WAY LINE TO A TXDOT MONUMENT FOUND; THENCE N 42 041'35"E, 102.81 FEET, CONTINUING WITH SAID EAST RIGHT-OF-WAY, LINE, TO A 5/8 INCH IRON ROD WITH PLASTIC CAP STAMPED "PELOTON" SET IN THE SOUTH RIGHT-OF-WAY LINE OF INTERMODAL PARKWAY) A 120 FOOT RIGHT- OF-WAY, (DEDICATED AS WESTPORT PARKWAY) RECORDED IN INSTRUMENT NUMBER D 194089674, SAID COUNTY RECORDS; THENCE N 89 026'43"E, 954.34 FEET, WITH SAID SOUTH RIGHT-OF-WAY LINE, TO A 5/8 INCH IRON ROD WITH PLASTIC CAP STAMPED "PELOTON" SET AT THE NORTHEAST CORNER OF SAID WESTPORT PARK NO. 18 TRACT; THENCE WITH THE EAST LINE OF SAID WESTPORT PARK NO. 18 TRACT THE FOLLOWING BEARINGS AND DISTANCES; S 00 029'22"E, 180.14 FEET, DEPARTING SAID SOUTH RIGHT-OF-WAY LINE, TO A 5/8 INCH IRON ROD WITH PLASTIC CAP STAMPED "PELOTON" SET; S 18°31'27"E, 162.19 FEET TO A 5/8 INCH IRON ROD WITH PLASTIC CAP STAMPED "PELOTON" SET; S 00 032'43"E, 941.59 FEET TO A 5/8 INCH IRON ROD WITH PLASTIC CAP STAMPED "PELOTON" SET; N 89 027'17"E, 446.43 FEET TO A 5/8 INCH IRON ROD WITH PLASTIC CAP STAMPED "PELOTON" SET; THENCE S 00 033'45"E, 483.84 FEET TO THE POINT OF BEGINNING AND CONTAINING 2,007,929 SQUARE FEET OR 46.096 ACRES OF LAND MORE OR LESS. FORT WORTH,, Tax Abatement Reinvestment Zone No.94- Pure Renewables USA LLC 1400 Intermodal Parkway Fort Worth,TX, 76177 FY -r s vrr f 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. City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 12/13/2016 - Ordinance No. 22555-12-2016 DATE: Tuesday, December 13, 2016 REFERENCE NO.: G-18918 LOG NAME: 17ED TARIZ94 SUBJECT: Conduct Public Hearing and Adopt Ordinance Designating Property Located at 1400 Intermodal Parkway Within the City of Fort Worth as Tax Abatement Reinvestment Zone No. 94, City of Fort Worth, Texas for Occupancy of a Facility by Pure Renewables USA LLC (COUNCIL DISTRICT 7) RECOMMENDATION: It is recommended that the City Council: 1. Conduct a public hearing concerning the designation of property at 1400 Intermodal Parkway that is located within the City of Fort Worth as Tax Abatement Reinvestment Zone No. 94, City of Fort Worth, Texas for occupancy of an 807,380 square foot facility for Pure Renewables USA LLC; and 2. Adopt the attached ordinance designating Tax Abatement Reinvestment Zone No. 94, City of Fort Worth, Texas pursuant to and in accordance with Chapter 312 of the Texas Tax Code. DISCUSSION: The proposed Tax Abatement Reinvestment Zone No. 94, City of Fort Worth, Texas (Zone) encompasses certain property at and adjacent to 1400 Intermodal Parkway that is located entirely within the City of Fort Worth. Pure Renewables USA LLC (Pure) is seeking to establish its business operations and intends to locate in a new facility. The proposed project will result in at least $266,800,000.00 in real and business personal property investment at the site. As required by Chapter 312 of the Texas Tax Code, a public hearing must be conducted regarding the creation of the 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. 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 reasonably likely, as a result of the designation, to contribute to the retention or expansion of primary employment or to attract 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 any Tax Abatement Agreements, which may be entered into, have expired. The term of the proposed Zone will be five years from the date of adoption of the attached ordinance. The proposed Zone is located in COUNCIL DISTRICT 7, Mapsco 6M. This M&C does not request approval of a contract with a business entity. Logname: 17ED TARIZ94 Pagc 1 of 2 FISCAL INFORMATION /CERTIFICATION: The Director of Finance certifies that approval of the above recommendation will have no material effect on the Fiscal Year 2017 Budget. Upon approval of this designation, any long term financial impacts will be included in the 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: Brenda Hicks-Sorensen (870-0154) Logname: 17ED TARIZ94 Page 2 of 2