HomeMy WebLinkAboutOrdinance 22557-12-2016 ORDINANCE NO. 22557-12-2016
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE 2007 CRITICAL CAPITAL PROJECTS FUND IN
THE AMOUNT OF $1,000,000.00, FROM AVAILABLE FUNDS, FOR THE
PURPOSE OF REIMBURSING THE DEVELOPER FOR CONTRIBUTING TO
CAPITAL IMPROVEMENTS OF N. SYLVANIA AVENUE; PROVIDING FOR A
SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF
PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT
HEREWITH; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2016-2017 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the 2007
Critical Capital Projects fund in the amount of $1,000,000.00, from available funds, for the purpose of
reimbursing the Developer for contributing to capital improvements of N. Sylvania Avenue.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or
void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 22393-09-2016 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions
of said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
eter Vaky,Deputy C' ttorney ary f. K T, SUretary
ADOPTED AND EFFECTIVE: December 13, 2016
Ordinance No.22557-12-2016
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655 , 000 SF Distribution Center
Northeast corner of N. Sylvania Ave. and Quorum Dr.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/13/2016 - Ordinance No. 22557-12-2016
DATE: Tuesday, December 13, 2016 REFERENCE NO.: C-28051
LOG NAME: 17HUNTSW-ECFA
SUBJECT:
Authorize Execution of an Enhanced Community Facilities Agreement with Hunt Southwest - Mercantile,
LLC for the Widening and Construction of Associated Public Improvements to N. Sylvania Avenue at a
Cost Not to Exceed $1,000,000.00 and Adopt Appropriation Ordinance (COUNCIL DISTRICT 4)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute an Enhanced Community Facilities Agreement with Hunt
Southwest - Mercantile, LLC for the widening and construction of associated public improvements to N.
Sylvania Ave. at a cost to the City not to exceed $1,000,000.00; and
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
2007 Critical Capital Projects Fund in the amount of$1,000,000.00.
DISCUSSION:
Hunt Southwest (Developer) intends to construct a new distribution center at the northeast corner of N.
Sylvania Ave. and Quorum Drive. The proposed site is currently served by an asphalt road that would be
insufficient for commercial traffic if the development moves forward. Transportation & Public Works has
indicated that widening N. Sylvania Ave. into a two lane arterial with a center turn lane would better
accommodate business park traffic and is in alignment with the City's Master Thoroughfare Plan. In order
to facilitate the desired road improvements, Staff is recommending that the City enter into an Enhanced
Community Facilities Agreement (ECFA) with the Developer for construction of the road improvements
along N. Sylvania Ave. and to enhance construction of the distribution center.
Under the proposed ECFA, the Developer will improve approximately 1,900 lineal feet of N. Sylvania Ave.,
including, but not limited to, the demolition of existing asphalt road, grading, paving of new road and
sidewalks, re-paving of driveway entrances, utility relocations and installations, street lighting, fire hydrants
and landscaping that must be completed to City specifications, all by January 31, 2018. The Developer will
publicly bid this infrastructure project, and the estimated total cost for the work is $2 million. The
Developer must obtain payment and performance bonds in the full amount of the overall infrastructure
project.
In order to receive City financial participation in this infrastructure project, as described below, the
Developer must also expend at least $20.5 million in construction costs for completion of a 655,000
square foot shell space distribution center located at the northeast corner of N. Sylvania Ave. and Quorum
Drive by January 31, 2018. In addition to construction of the facility and road improvements, the
Developer has committed to securing a tenant(s) to occupy a minimum of 50 percent of the building. The
Developer will use commercially reasonable efforts to meet a goal of providing at least 50 jobs via tenant
(s) within the facility by December 31, 2019. The Developer will also use commercially reasonable efforts
Logname: 17HUNTSW-ECFA Page 1 of 2
to meet a goal of expending or causing to be expended with Fort Worth Certified M/WBE companies at
least 25 percent of the public improvement costs. Failure to meet these two goals will not result in any
penalty to the Developer, although the Developer will be required to provide explanation and
documentation to the City if it is unable to achieve either or both goals.
In exchange for completing these improvements and having the building at least 50 percent occupied by
December 31, 2019, City staff has proposed an ECFA with the Developer for reimbursement up to a
maximum total of 50 percent of the public infrastructure costs or$1 million, whichever is less. If the
Developer does not have the building at least 50 percent occupied by December 31, 2019, the City's
maximum fixed reimbursement obligation will be reduced from $1 million to $500,000. If the Developer
does not meet all of the other improvement commitments above, the Developer will be ineligible for any
reimbursement. The source of funds for this reimbursement will come from the 2007 Critical Capital
Projects Fund and the City expects to receive $1.7 million in incremental new taxes from this development
over the next ten years. The Developer may assign its interest in the agreement only with the consent of
the City's Economic Development Department, which shall not be unreasonably withheld. Notwithstanding
the immediately preceding sentence, Developer will at any time be able to freely assign to an affiliate of
Developer.
This project is located in COUNCIL DISTRICT 4.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the
appropriations ordinance, funds will be available in the ECFA N. Sylvania Improvements Project within the
Critical Capital Projects Fund (39001) associated with the Fiscal Year 2007 Debt Program.
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)
Ori-ginating Department Head: Robert Sturns (212-2663)
Additional Information Contact: Ossana Hermosillo (212-2665)
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