HomeMy WebLinkAboutOrdinance 22706-05-2017 ORDINANCE NO. 22706-05-2017
AN ORDINANCE INCREASING RECEIPTS AND APPROPRIATIONS IN
THE FORT WORTH PUBLIC IMPROVEMENT DISTRICT NO. 16 (WALSH
RANCH/QUAIL VALLEY) FUND BY $350,000.00 TO PAY THE COSTS OF
SERVICES ASSOCIATED WITH THE SET-UP AND ONGOING
ADMINISTRATION OF THIS PUBLIC IMPROVEMENT DISTRICT;
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 receipts and appropriations in the Fort
Worth Public Improvement District No. 16 (Walsh Ranch/Quail Valley) Fund by $350,000 to pay the
costs of services associated with the set-up and ongoing administration of this Public Improvement
District.
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provisions of said prior ordinances and appropriations are hereby expressly repealed.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:
Tyler F. Wall*4i,Assistant City Attorney Mary J. tWer—,10ty V cretary
ATP D AND EFFECTIVE: May 2.2017
Ordinance No.22706-05-2017
Page 1 of 1
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/2/2017 - Ordinance No. 22706-05-2017, 22707-05-2017 &
Resolution No. 4777-05-2017
DATE: Tuesday, May 2, 2017 REFERENCE NO.: C-28221
LOG NAME: 13QUAIL VALLEY WALSH RANCH PID FY2017
SUBJECT:
Conduct a Public Hearing to Consider the Levying of Special Assessments in Improvement Area No. 1 of
Fort Worth Public Improvement District No. 16 (Walsh Ranch/Quail Valley) (Quail Valley PID); Adopt
Ordinance (1) Levying Special Assessments on the Property Located in Improvement Area No. 1 of the
Quail Valley PID, (2) Approving Service and Assessment Plan for the Quail Valley PID (Service and
Assessment Plan), (3) Approving Assessment Roll for Improvement Area No. 1 of the Quail Valley PID
(Assessment Roll), and (4) Ordaining Other Matters Related Thereto; Adopt Resolution Approving the
Improvement Area No. 1 Reimbursement Agreement (Reimbursement Agreement) with Quail Valley
DEVCO I, LLC, and Walsh Ranches Limited Partnership (Collectively, Developers) to Address
Construction, Acquisition and Financing of the Improvements in Improvement Area No. 1 of the Quail
Valley PID; Authorize Execution of a Majority Landowner Agreement; and Adopt Appropriation Ordinance
(COUNCIL DISTRICT 3)
RECOMMENDATION:
It is recommended that the City Council:
1. Conduct a public hearing concerning the proposed special assessments to be levied on the property
located in Improvement Area No. 1 of the Quail Valley PID with collection to begin in the 2018 Tax Year;
2. Adopt the attached ordinance (a) levying special assessments on the property located in Improvement
Area No. 1 of the Quail Valley PID, (b) approving the Service and Assessment Plan, (c) approving the
Assessment Roll for Improvement Area No. 1 of the Quail Valley PID, and (d) ordaining other matters
related thereto;
3. Adopt the attached resolution approving the Reimbursement Agreement with the Developers setting
forth the terms governing the construction, acquisition and financing of the improvements in Improvement
Area No. 1 of the Quail Valley PID, including the use of the special assessment revenues;
4. Approve execution of a Majority Landowner Agreement with the Developers, outlining responsibilities
associated with coordination of notices and payment of assessments for land in Improvement Area No. 1
that is not owned by Developers; and
5. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Fort Worth Public Improvement District No. 16 (Walsh Ranch/Quail Valley) Fund in the amount of
$350,000.00 from available funds.
DISCUSSION:
In September 2016, the City Council approved the creation of the Quail Valley PID, encompassing
Logname: 13QUAIL VALLEY_WALSH_RANCH_PID_FY2017 Page I of 3
approximately one-fourth of the entire Walsh Ranch property, as a vehicle to reimburse the Developers for
certain infrastructure costs. Full development of the Quail Valley PID will encompass multiple phases that
occur over several years as phases of the Quail Valley PID are developed. This Mayor and Council
Communication (M&C) is intended to address Improvement Area No. 1 of the Quail Valley PID, which is
the first phase of development.
On April 11, 2017, the City Council adopted Resolution No. 4768-04-2017 concerning certain matters
related to the Quail Valley PID, including the following: (1) determining the costs of certain public
improvements; (2) accepting a preliminary service and assessment plan, including a proposed
assessment roll; (3) directing the filing of the proposed assessment roll with the City Secretary; (4) calling
for a public hearing to consider the ordinance levying special assessments on property located within the
area defined as Improvement Area No. 1 of the Quail Valley PID and (5) directing Staff to publish and mail
notice of this public hearing to the property owners liable for payment of the special assessment.
The purpose of the public hearing is to receive comments from the public regarding the proposed special
assessments to be levied on each property in Improvement Area No. 1 of the Quail Valley PID. As
outlined in the Service and Assessment Plan, improvements in the amount of$6,350,000 are to be funded
by the special assessments on Improvement Area No. 1, including $5,712,973.00 for paving expenses
and $637,027.00 for landscaping expenses. The special assessments will be levied across 587 residential
units (representing 251.01 acres) and collected over a 30 year period. The 587 lots are divided into five
categories, with each category represented by lot width. Widths including categories as follows: 35 feet,
50 feet, 60 feet, 70 feet and custom lot sizes.
Assessments will be allocated as follows:
Lot Size F# of Lots Annual Installment
35 feet v� 28 $ 517.00
50 feet 239 �! $ 642.00
�60 feet �— -1.82 $ 791.00
70 feet 98 1 $1,008.00
Custom [ 40 1 $1,670.00
In addition to the $6,350,000.00 of improvements funded by the special assessments, the Developers are
constructing, without reimbursement from the Quail Valley PID, additional improvements in the amount of
$23,168,594.00, bringing the total costs of improvements in Improvement Area No. 1 of the PID to
$29,518,594.00.
The Developers will be responsible for managing all construction and the associated Agreements for the
development of the lots and residential units within the Quail Valley PID. Beginning in 2019, the City will
begin to make quarterly payments to the Developers in satisfaction of the Reimbursement Amount from
the special assessments revenues, less any administrative fees. The Reimbursement Amount for
Improvement Area No. 1 will be paid over a maximum period of 30 years. Until bonds, if any, are issued,
the Developer will be entitled to interest on the unpaid Reimbursement Amount at the rate of 6 percent in
years 1 and 2, and 5 percent in years 3 through 30. If any portion of the Reimbursement Amount remains
unpaid after the City has elected to issue bonds, the interest rate on the unpaid Reimbursement Amount
shall be the same as the interest rate on the bonds. It is anticipated that within five years, provided that the
Developers have satisfied certain obligations designed to ensure the rapid development of the entire Quail
Valley PID, the City will explore options to accelerate the reimbursement of the Developers by issuing debt
secured by a portion of the special assessments.
In order to maintain Developers construction schedule, portions of the property in Improvement Area No. 1
Logname: 13QUAIL_VALLEY_WALSH_RANCH_PID_FY2017 Page 2 of 3
have been sold to home developers since the PID was created. The Majority Landowner Agreement
addresses the responsibilities of Developers and City with respect to notices, assurances, and payment of
assessments for property in Improvement Area No. 1 that is not owned by the Developers.
Finally, the adoption of the attached appropriation ordinance provides the necessary funding for the City to
pay the costs of services associated with the set-up and ongoing administration of the Quail Valley PID.
Expenses will cover costs for financial advisors, PID administrators, and legal services up to $350,000.00.
Revenues will also be adjusted by the same amount but are not anticipated to be received until Fiscal
Year 2018.
It is recommended that the City Council adopt the attached ordinance levying such special assessments
and approving the Service and Assessment Plan and Assessment Roll, adopt the resolution approving the
Reimbursement Agreement for Improvement Area No. 1, and adopt the appropriation ordinance
increasing estimated receipts and appropriations in the Fort Worth Public Improvement District No. 16
(Walsh Ranch/Quail Valley) Fund in the amount of$350,000.00.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of this M&C, the Quail Valley Service and Assessment
Plan will be approved, the City will levy assessments for a 30 year period on property within Area No. 1
and that the City will reimburse the developer$6,350,000.00 of development costs through the income
generated from the assessments.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year (Chartfield 2)
FROM
FUndl Department Accoun Project JProgram ctivity Budget Reference # mount
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: John Samford (2318)
Logname: 13QUAIL VALLEY WALSH RANCH PID_FY2017 Page 3 of 3