Loading...
HomeMy WebLinkAboutResolution 3023~. "~,~, ~ :~ ~r A Resolution NO `~/~ AUTHORIZING THE CITY MANAGER TO EXECUTE A SECOND ECONOMIC DEVELOPMENT PROGRAM AGREEMENT WITH TLC GREEN PROPERTY ASSOCIATES I, L P WHEREAS, on January 30 2001 the City Council adopted Resolution No 2704 establishing an Economic Development Program authorized by Chapter 380 of the Texas Local Government Code (the Chapter 380 Economic Development Program') and WHEREAS, the Chapter 380 Economic Development Program provides that the City may establish individual economic development programs on a case by-case basis with businesses or entities that the City Council determines will promote state or local economic development and stimulate business and commercial activity in the City and WHEREAS, under an individual economic development program established as part of the overall Chapter 380 Economic Development Program a qualifying business or entity must enter into a binding contract with the City under which such business or entity agrees to make verifiable infrastructure employment and other commitments that serve public purposes as determined by the City Council and WHEREAS, TLC Green Property Associates I L P (`TLC ') owns property in the downtown area of the City (the `TLC Site') that includes the former Bank One high rise office building that was severely damaged in a tornado on March 28 2000 (the `Tower") and an adjacent structure utilized as a parking garage and office building TLC desires to redevelop the TLC Site in order for the Tower to be used for residential/mixed use purposes (the `Project") and WHEREAS, on February 18 2003 the City Council M&C C 19480 establishing an individual economic development program for TLC under the Chapter 380 Economic Development Program (the `TLC Program ') and WHEREAS, as part of the TLC Program, as of March 2.8 2003 the City and TLC entered into City Secretary Contract No 28551 an Economic Development Program Agreement under which the City agreed to make certain economic development grant payments authorized by Chapter 380 of the Texas Local Government Code in return for TLC s commitment to make real property investments on the TLC Site of at least $50 million in construction costs with the Tower containing at least 200 residential units occupying at least 300 000 square feet of space and at least 20 000 square feet of space for t;, ~~; street level retail business (the `Required Improvements ') as well as various construction spending supply/service spending and employment commitments related to the TLC Site ~nd WHEREAS, TLC also entered into a Tax Increment Financing Development Agreement (the `TIF Development Agreement ') dated on or about March 28 2003 and a Parking Garage Lease Agreement (the `TIF Parking Garage Lease ') dated as of February 25 2003 with the Board of Directors of Tax Increment Reinvestment Zone Number Three City of Fort Worth Texas (the `Downtown TIF ') and WHEREAS, under the TIF Development Agreement the Downtown TIF has agreed to reimburse TLC of up to $3 million for asbestos abatement within the Tower and under the TIF Parking Garage Lease the Downtown TIF has agreed to lease certain parking spaces solely for free and reduced fee public parking in the vehicular parking garage adjacent to the Tower and/or the Sanguinet Building Garage as defined in and in accordance with the TIF Parking Garage Lease at an annual rental of up to $800 000 and WHEREAS, both the TIF Development Agreement and the TIF Parking Garage Lease are subordinate to certain other project costs to which the Downtown TIF has previously committed and WHEREAS, in order for TLC to obtain financing to construct the Required Improvements to the Tower TLC and TLC s lenders are requesting the City to in effect guarantee payment to TLC of the Downtown TIF s financial obligations to TLC under the TIF Development Agreement and the TIF Parking Garage Lease if in any given year the Downtown TIF does not have sufficient revenue to fulfill all or any portion of those ,obligations and WHEREAS, the City Council has found that (i) the Tower has been vacant for over three (3) years (ii) several attempts by the private sector alone have failed (iii) the increase in quality urban development that the downtown area has enjoyed for over a decade will likely stall or decline if the Tower is not redeveloped in a timely manner and (iv) redevelopment of the Tower is not likely to occur without public assistance NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS THAT 1 The TLC Project and associated redevelopment of the Tower is critical and necessary to the future of the City s downtown area 2 The request of TLC and its lender(s) that the City in effect, guarantee the financial obligations of the Downtown TIF to TLC under the TIF Development Agreement A? ~4 and the TIF Parking Garage Lease are justified only because of the extraordinary nature of the Tower s condition location profile and potential for redevelopment as outlined m the ~Prolect 3 The City Manager is hereby authorized to execute a second Economic Development Program Agreement with TLC under which the City will in addition to any economic development grants authorized by City Secretary Contract No 28551 make further economic development grants to TLC beginning in calendar year 2005 and in each subsequent calendar year until expiration and/or termination of both the TIF Development Agreement and the TIF Parking Garage Lease The amount of any such grants will be the difference between the actual amount owed to TLC by the Downtown TIF in a given calendar year pursuant to such the TIF Development Agreement and the TIF Parking Garage Lease and the actual amount paid to TLC by the Downtown TIF thereunder in that same calendar year 4 The City Manager is hereby directed to negotiate an agreement with the Downtown TIF under which the Downtown TIF will reimburse the City for any sums paid to TLC by the City under the second Economic Development Program Agreement as authorized by this Resolution 5 This Resolution and the second Economic Development Program Agreement authorized hereunder is necessitated by the unique set of circumstances associated with the Tower and its redevelopment and is not intended to set a precedent of the City for future economic development projects or to be construed as any kind of policy initiative of the City to guarantee payments to other parties by any tax increment reinvestment zone m the City ADOPTED this 16th da of December 2003 `~'~'`'~' w~``~ T ~ ~ r ATTES _'_ r!;i~s; p.6 2~ '""' r ~ '' B u (~ r5~.3'F..' a~sw` 1~ ~ City Secre ~ ! ,, ~,.~ ~ ^ --~ .Y..- ,~ 1:: ~~~~~'r.._'~'Yµ^.~w'i.'~ ~~ ~ ~~ ~~