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HomeMy WebLinkAboutOrdinance 22745-06-2017 ORDINANCE NO. 22745-06-2017 AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE CITY OF FORT WORTH AS "TAX ABATEMENT REINVESTMENT ZONE NUMBER 91A, 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, as more specifically depicted as "91A" in the map attached hereto as Exhibit "A" (the "Zone"), through the creation of a reinvestment zone for purposes of granting a tax abatement, as authorized by and in accordance with Chapter 312 of the Code; and WHEREAS, the Zone is adjacent to that real property designated under Ordinance No. 21698-11-2015 as Tax Abatement Reinvestment Zone No. 91, City of Fort Worth, Texas (the "Initial Zone"); and WHEREAS, the City previously granted American Airlines, Inc. ("Company") a tax abatement on property and improvements located in the Initial Zone in return for Company's construction of a new corporate headquarters to be located in the Initial Zone, Ordinance No.22745-06-2017 Ordinance Designating Tax Abatement Reinvestment Zone Number 91 A, Page 1 of 10 City of Fort Worth,Texas with a minimum expenditure of at least $200 million in real property improvements (the "Project"), as governed by that certain Tax Abatement Agreement on file in the City Secretary's Office as City Secretary Contract No. 47341; and WHEREAS, Company now wishes to construct the Project with multiple buildings, which would require a portion of the Project to be constructed not only on land within the Existing Zone, but also on land within the Zone proposed; and WHEREAS, on June 6, 2017 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 May 26, 2017, 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: Ordinance No.22745-06-2017 Ordinance Designating Tax Abatement Reinvestment Zone Number 91 A, Page 2 of 10 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: 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 in excess of 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. Ordinance No.22745-06-2017 Ordinance Designating Tax Abatement Reinvestment Zone Number 91A, Page 3 of 10 City of Fort Worth,Texas Section 2. DESIGNATION OF ZONE. That the City Council hereby designates the property depicted as "91A" in the map attached hereto as Exhibit "A" as a reinvestment zone for purposes of granting a commercial-industrial 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 91A, City of Fort Worth, Texas." The specific metes and bounds of the property comprising the Zone consists of the property described in Exhibit"B", which is all of the property on which the Project will be constructed, less the property described in Exhibit "C", which is all of the Property comprising the Existing Zone. The Project is eligible for commercial/industrial tax abatement pursuant to Section 4.1 of the Tax Abatement Policy. 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 of five (5)years or less. 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, Ordinance No.22745-06-2017 Ordinance Designating Tax Abatement Reinvestment Zone Number 91 A, Page 4 of 10 City of Fort Worth,Texas 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: Peter Vaky, Mary J. KayW, Deputy City Attorney City Secretary M&C:G-19018 ADOPTED AND EFFECTIVE: June 6, 2017 Ordinance No.22745-06-2017 Ordinance Designating Tax Abatement Reinvestment Zone Number 91A, Page 5 of 10 City of Fort Worth,Texas EXHIBIT"A" MAP DEPICTING ZONE FORTWORTH Tax Abatement Reinvestment Zone No. 91A - American Airlines 13951 Trinity Boulevard, Fort Worth, Texas 76155 "Exhibit A" dy . PP N1, ow •�,�,'.` �, III• � t k *«4 s ` a +aft �� 1 yl R AGN- / �, h + �C r ff � S l OF C_ ,3. 77 ON IV + a (n91 -47 ra' w,TRINITY ' yy 'E R t 5# Lf) kVa baiMra..rir+a CD T �I _ •' Hlo w �.: t q 3 p Copyright 2017 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws. This product is for informational purposes and may not have prepared for or be suitable for legal,engineering,or surveying purposes.It does not represent an on-the-ground survey and represents only the appron im.iw re' location of property boundaries. The City of Fort Worth assumes no responsibility for the accuracy of said data Of EXHIBIT "B" METES AND BOUNDS OF ENTIRE PROPERTY ON WHICH THE PROJECT WILL BE CONSTRUCTED (COVERS BOTH TAX ABATEMENT REINVESTMENT ZONES NO. 91 AND 91A) This metes and bounds description includes both the property comprising the Zone (Tax Abatement Reinvestment Zone No. 91A) as well as the property comprising the Existing Zone (Tax Abatement Reinvestment Zone No. 91). The Zone itself comprises the property set forth in this metes and bounds description less the property described in Exhibit "C", which property consists of the Existing Zone. METES AND BOUNDS DESCRIPTION SABRE TRACT BEING A 124.04 ACRE TRACT OF LAND SITUATED IN THE WILLIAM G. MATTHEWS SURVEY, ABSTRACT NUMBER 1052 AND THE V.J. HUTTON SURVEY, ABSAJRLRLINES ADDITTIOONN BEIaG581 TANRANT ADDI�ONNTO THExCIITYNOF FORRTT WORCITY OFTH AACCORT A WORTH TO THE PLAT REWIDT I BE DIN VOLUMEL13B8�.1330PAGE AMERICAN RECORDS OF TARdANT COUNTY TEXAS ALSO BEING A PORTION OF THE TRACT OF LAND DESCRIBED AS THE NORTH TRACT IN 1HE DEED t6 DFW REGIONAL AIRPORT BOARD RECIMDED IN VOLUME 8853, PAGE 858. DEED RECORDS OF TARRANT COUNTY, TEXAS AND BEING A PORTION OF THE TRACT OF EAIDESCRIBED IN TRA® TO LAND REGIONAL EING MOAIRPORT E PRTIC BOARD RECORDED DESCRIBED VOLUME 6710.PAGE 520, DEED RECORDS OF TARRANT COUNTY, BEGINNING AT THE POINT OF INTERSECTION OF THE NORTHERLY RIGHT-OF-WAY LINE OF TRINITY BOULEVARD(A VARIABLE WIDTH RIGHT-OF-WAY)NTH LOT WE1. STST�Y RIGHT-OF-WAY LINE OF STATE HIGHWAY 36D(A VARIABLE WIDTH RIGHT-OF-WAIL)ALSO BONG THE SOUTHEASTERLY CORNER OF SAID THENCE WITH THE NORTHERLY RICHT-OF-WAY LINE OF TRINITY BOULEVARD THE FOLLOWING: SOUTH 86' 48'38"WEST A DISTANCE OF 119.82 FEET TO A PONT; NORTH 81' 25'15"WEST A DISTANCE OF 372.43 FEET TO A PONT; SOUTH 88.10'20"WEST A DISTANCE OF 1D2.31 FEET TO A POINT. NORTH 0.3' 35'59"WEST A DISTANCE OF 243.40 FEET TO THE BEGINNING OF A NON-TANGENT CURVE TO THE RIGHT HAVING A RADIUS OF 1,372.00 FEET; NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 04' 21'19"AN ARC DISTANCE OF 104.27 FEET WITH A CHORD BEARING OF NORTH 70'06'DO"WEST AND A CHORD DISTANCE OF 104.27 FEET TO THE PONT OF TANGENCY OF SAID CURVE NORTH OT 57 20"WEST A DISTANCE OF 148.40 FEET TO THE POINT OF CURVATURE OF A CURVE TO THE LEFT HAVING A RADIUS OF 1,425.00 FEET; SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 54' 27'23"AN NRC DISTANCE OF 1.357.20 FEET TO THE POINT OF TANGENCY OF SAID CURVE; 0, SOUTH 57'35'18"WEST A DISTANCE OF 81.02 FEET TO A POINT; y SOUTH 09' 17' 00"WEST A DISTANCE OF 153.69 FEET N A PONT IN THE EASTERLY RIGHT-OF-WAY LINE OF AMERICAN BOULEVARD(A VARIABLE o WIDTH RIGHTD LOT OFBWA 13N A NON-TANGENT CURVE TO THE RIGHT HAVING A RADIUS OF 700.00 FEET, ALSO BEING THE SOUTHWESTERLY CORNER THENCE DEPARTING THE NORTHERLY RIGHT-OF-WAY LINE OF TRINITY BOULEVARD WITH THE EASTERLY RIGHT-OF-WAY LINE OF AMERICAN BOULEVARD E THE FOLLOWING; r uS NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF Zr 24'1D"AN NRC DISTANCE OF 273.20 FEET TO THE POINT OF TANGENCY Z. OF SAID CURVE; CNORTH 01' 41'36"EAST A DISTANCE OF 28.19 FEET TO A POINT; NORTH DOM-'30"EAST A DISTANCE OF 533.43 FEET TO THE POINT OF CURVATURE OF A CURVE TO THE RIGHT HAVING A RADIUS OF 1,270.00 FEET; NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 24. 11'49"WITH AN ARC DISTANCE OF 554.D7 FEET TO THE POINT OF `St TANGENCY OF SAID CURVE; NORTH 24' 29'19"EAST A DISTANCE OF 429.79 FEET TO THE POINT OF CURVATURE OF A CURVE TO THE LEFT HAVING A RADIUS OF 1,344.00 FEET; �^ NORTHEASTERLY ALONG SAID CURVE TROUGH A CENTRAL ANGLE OF 25. 49'19"AN NRC DISTANCE OF 605.70 FEET TO THE POINT OF TANGENCY c OF SAID CURVE; o NORTH 00' 3Y 00"WEST A DISTANCE OF 27548 FEET TO THE NORTHWESTERLY CORNER OF SAID LOT 1. BLOCK 3; THENCE DEPARTING THE EASTERLY RICHT-OI"-WAY LINE OF AMERICAN BOULEVARD WITH THE NORTHERLY LINE OF SAID LOT 1. BLOC( 3 THE FOU.OWIW.. Q NORTH 89. OY EAST A DISTANCE OF 59500 FEET TO A POINT; D �. NORTH 59. 00'EAST A DISTANCE OF 850.00 FEET TO THE NORTHEASTERLY CORNER OF SAID LOT 1,BLOCK 3; Z THENCE WITH THE EASTERLY LINE OF SAID LOT 1.BLOCK 3 SOUTH 00'31'WEST A DISTANCE OF 929.00 FEET TO THE NORTHWESTERLY CORNER OF 7S►A{IDDLLOT 1,BLOCK 2; DISTANCE F 1 0�9&I�THE EASTERLY POINTIN THE LOWE§700Y RIGHT-OF-WAYBLOCK IS LIN E TMSTATE LINE 360 TFOIR THE NORTHEEASTERLLY CORNER EAST SAID . BLOCK 1E THENCE WITH THE WESTERLY RICHT-OF-WAY LINE OF STATE HIGHWAY 36D THE FOLLOWING; 5g SOUTH 00' 23'36"WEST A DISTANCE OF 07.75 FEET TO A POINT; Si SOUTH 34' 45'15"WEST A DISTANCE OF 60.96 FEET TO A POINT; o SOUTH 00' 14'57"EAST A DISTANCE OF 149.55 FEET TO A POINT; u g' SOUTH 14. IS 33"EAST A DISTANCE OF 103.15 FEET TO A POINT; SOUTH DO' 12'02"EAST A DISTANCE OF 99.93 FEET TO A POINT; SOUTH 18' 23'55"WEST A DISTANCE OF 104.32 FEET TO A POINT, Q SOUTH 03'04'44"WEST A DISTANCE OF 801.18 FEET TO A POINT; w SOUTH D1. 35'43"WEST A DISTANCE OF 300.25 FEET TO A POINT; f SOUTH 03'30'44"WEST A DISTANCE OF 182.88 FEET TO A POINT; SOUTH 43'S8'23"WEST A DISTANCE OF 73.34 FEET To THE POINT OF BEGINNING; (q CONTAINING A COMPUTED AREA OF 124.04 ACRES OF LAND. Q NOTE: THIS METES AND BOUNDS DESCRIPTION WAS COMPILE)USING INFORMATION CONTAINED IN THE RECORDED DOCUMENTS CITED HEREIN AND DOES NOT REFLECT THE RESULTS OF AN ON THE GROUND SURVEY. 8001666.004 PAGE 1 OF 2 >n a An exhibit of even date accompanies o this metes and bounds description. IE z AUGUST 17,2015 0 SABRE TRACT Aw DUNAWAy 550 Balley Avenue•Suite 400•Fort Worth,Texas 76107 m Tel:817.335.1121 o FIRM REGISTRATION 10098100 (2 a DFM REGIONAL U.S, AIRPORT BOARD Val 3416 SOUTH TRACT VOLUME PAGE 596 WW PAGE B70 VOLUME 5531 PAGE BB o M0072'00•W 275.4W-\ N89'07'E N59mal FEW 595.00' 650.00' COFw PLOT B VOLUME 5072,PACE 417 The wMbh.don9 slth the attedi d mot"a1M b AJ 3 bounds daecptlan ere oampllW tmm Marmaflon SU Sry �( cantelned M the reordsd dooumento ehom hereon. 25'4919• �e5 R_134400'•L_605.70' 't,1.•d D_ LOT 1, r BLOC(3 N2479'19'E 429.79' NBW3W26•E 1096.82' WIN REGIONAL o 500'2s'SB'E 67.76• d AIRPORT BOARD g 5]4'45'1S•IY 60.96' VOLUME 6710.PAGE 520 S'0014'S7•E 1/9.66• j Sts•ISWE 103.15' a 5 124.04 ACgES 51625'J" 104,& SDO12.O2'E 99.95 AMERICMN ARRLBE9*M'ffCN ; wMUME.568-1=a.PAGE 60 e, I w -2411'49' DFW REGIONAL !4 R-1270.00'Lr554.07' AIRPORT BOARD s F ORTH TRACT m H VOLUME 6853.PAGE 655 Q Q€ I o (} N S16'" 102.31' BLOOCK Bet2 1. I '.� W 8� N83W5rW 24&48r- < 43.46• =g a < POINT OF Nma'36'E 2e.10 v ssr3s16w N673�� BEGINNING '3'4W X25• SABRE TRACT 8102' x.54"2 "2224'10• R�1420.0D L__7- SOV L_273.711' SO330'44•W 16268' TRINITY BOULEVARD w NB128.15•w 5891rw '� 372.43• S43.5623•W 73.x• 5do kftyAwus•Aft 4m•wtwerl4f o747W 153.69' (VARIABLE 91DTH RW11T-OF-WAY) ae.2r Tet 4173311171 SB6'4W36•w 119-OZ qW I85i6fRAI10N 1m161m SHEET 2 OF 2 DATE AUGUST 17,2015 JOB NUMBER: 8001666.004 E If EXHIBIT "C" METES AND BOUNDS OF EXISTING ZONE (TAX ABATEMENT REINVESTMENT ZONE NO. 91) BEING a 97.701 acre tract of land situated in the William G. Matthews Survey, Abstract Number 1052 and the V. J. Hutton Survey, Abstract Number 681, Tarrant County, Texas, in the City of Fort Worth, being a portion of the tract of land described in the deed to Dallas-Fort Worth Regional Airport Board recorded in Volume 6710, Page 520, Deed Records of Tarrant County, Texas and being all of the tract of land described as the North Tract in the deed to Dallas-Fort Worth Regional Airport Board recorded in Volume 6653, Page 856, Deed Records of Tarrant County, Texas, also being a portion of Lot 1, Block 3 and all of Lot 1, Block 2,American Airlines Addition according to the plat recorded in Volume 388-133, Page 60, Plat Records of Tarrant County, Texas, and being a portion of the tract of land described as Plot B in the deed to the City of Fort Worth recorded in Volume 5072, Page 417, Deed Records of Tarrant County, Texas, said 97.701 acre tract of land being more particularly described as follows: BEGINNING at a 5/8 inch iron rod found in the westerly right-of-way line of State Highway 360 a variable width right-of-way) for the northeasterly corner of said North Tract and of said Lot 1, Block 2, American Airlines Addition; THENCE with the westerly right-of-way line of State Highway 360 the following: South 000 55' 57"East (Volume 6653, Page 856 & Volume 388-133, Page 60 = South 00023' 38"East) a distance of 87.75 feet to a 5/8 inch iron rod found for corner; South 340 12' 56" West (Volume 6653, Page 856 & Volume 388-133, Page 60 = South 34°45' 15" West) a distance of 60. 96 feet to a point; South 00047 ' 18"East (Volume 6653, Page 856 &Volume 388-133, Page 60 = South 00° 14 ' 57"East) a distance of 149.86 feet to a 5/8 inch iron rod found for corner; South 14 '45' 52"East (Volume 6653, Page 856 & Volume 388-133, Page 60 = South 140 13' 33"East) a distance of 103.15 feet to a 5/8 inch iron rod found for corner; South 00' 44 ' 21"East (Volume 6653, Page 856 &Volume 388-133, Page 60 = South 00° 12 ' 02"East) a distance of 99. 93 feet to a 5/8 inch iron rod found for corner; South 15° 53' 36" West (Volume 6653, Page 856 &Volume 388-133, Page 60 = South 160 25' 55" West) a distance of 104 .32 feet to a 5/8 inch iron rod found for corner; South 020 32 ' 25" West (Volume 6653, Page 856 &Volume 388-133, Page 60 = South 030 04 ' 44" West) a distance of 601.18 feet to a 3/4 inch iron rod found for corner; South 01' 06' 26" West (Volume 6653, Page 856 & Volume 388-133, Page 60 = South 01'38 ' 45" West) a distance of 300.25 feet to a 3.5 inch aluminum monument found for corner; South 020 58 ' 25" West (Volume 6653, Page 856 &Volume 388-133, Page 60 = South 03030' 44" West) a distance of 182.88 feet to a 3.5 inch aluminum monument found for corner; South 43'26' 04" West (Volume 6653, Page 856 &Volume 388-133, Page 60 = South 430 58 ' 23" West) a distance of 73.34 feet to a point in the northerly right-of-way line of Trinity Boulevard (a variable width right-of-way) ; THENCE departing the westerly right-of-way line of State Highway 360 with the northerly right-of-way line of Trinity Boulevard the following: South 860 16' 17" West (Volume 6653, Page 856 &Volume 388-133, Page 60 = South 86'48 ' 36" West) a distance of 119.82 feet to an aluminum disk stamped "DFW Int Airport" found for corner; North 82'00' 32" West (Volume 6653, Page 856 &Volume 388-133, Page 60 = North 8 V 28' 13" West) a distance of 372. 43 feet to a point; South 8744 ' 01" West (Volume 6653, Page 856 &Volume 388-133, Page 60 = South 880 16' 20" West) a distance of 102.31 feet to a 5/8 inch iron rod found for corner; North 840 05' 43" West (Volume 6654, Page 856 &Volume 388-133, Page 60 = North 830 35' 57" West) a distance of 243.89 feet to an aluminum disk stamped "DFW Int Airport" found for the beginning of a non- tangent curve to the right having a radius of 1, 372.00 feet; Northwesterly along said curve through a central angle of 4°21' 00" an arc distance of 104 .17 feet with a chord bearing of North 700 35' 54" West and a chord distance of 104 .14 feet to the end of said curve; North 68029' 39" West a distance of 146.40 feet to an aluminum disk stamped "DFW Int Airport" found for the point of curvature of a curve to the left having a radius of 1, 428.00 feet; Southwesterly along said curve through a central angle of 54027' 23" an arc distance of 1, 357.23 feet with a chord bearing of South 840 16' 40" West and a chord distance of 1, 306.72 feet to a 5/8 inch iron rod with a cap stamped "KHA" found at the end of said curve; South 57032 ' 19" West a distance of 61.02 feet to a 5/8 inch iron rod with a cap stamped "KHA" found for corner; South 88044 ' 41" West a distance of 153. 69 feet to a 5/8 inch iron rod with an orange cap found in the easterly right-of-way line of American Boulevard (a variable width right-of-way) for the beginning of a non- tangent curve to the right having a radius of 700.00 feet; THENCE departing the northerly right-of-way line of Trinity Boulevard with the easterly right-of-way line of American Boulevard the following: Northwesterly along said curve through a central angle of 22°24 ' 10" an arc distance of 273.70 feet with a chord bearing of North 11°26' O1" West and a chord distance of 271. 96 feet to an aluminum disk stamped "DFW Int Airport" found at the end of said curve; North 00° 13' 26" West a distance of 559.39 feet to an aluminum disk stamped "DFW Int Airport" found for the beginning of a non-tangent curve to the right having a radius of 1,270. 00 feet; Northeasterly along said curve through a central angle of 24° 59' 55" an are distance of 554 . 11 feet with a chord bearing of North 12° 16' 12"East and a chord distance of 549.73 feet to an aluminum disk stamped "DFW Int Airport" found at the end of said curve; North 230 59' 25" East a distance of 367.44 feet to a point; THENCE departing the easterly right-of-way line of American Boulevard North 890 06' 09" East at a distance of 1, 388. 49 feet passing the northwesterly corner of said Lot 1, Block 2, American Airlines Addition, continuing with the northerly line of said Lot 1, Block 2 in all a total distance of 1, 788 .49 feet to a point; THENCE departing the northerly line of said Lot 1, Block 2 North 000 53' 51"West a distance of 100.00 feet to a point; THENCE North 890 06' 09"East a distance of 300. 00 feet to a point; THENCE South 000 53' 31"East a distance of 100. 00 feet to a point in the northerly line of said Lot 1, Block 2; THENCE with the northerly line of said Lot 1, Block 2 North 890 06' 09" East a distance of 398.82 feet to the POINT OF BEGINNING; CONTAINING a computed area of 97. 701 acres (4, 255, 856 square feet) of land. City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 61612017 - Ordinance No. 22745-06-2017 ................. ...................... DATE: Tuesday, June 6, 2017 REFERENCE NO.: G-19018 LOG NAME: 17ED TARIZ91-A SUBJECT: Conduct Public Hearing and Adopt Ordinance Designating Property at Dallas-Fort Worth International Airport Located Within the City of Fort Worth as Tax Abatement Reinvestment Zone No. 91A, City of Fort Worth, Texas, for Construction of a Corporate Headquarters Facility for American Airlines, Inc., and Amend City Secretary Contract No. 47341 to Include Such Additional Property (COUNCIL DISTRICT 5) RECOMMENDATION: It is recommended that the City Council: 1. Conduct a public hearing concerning the designation of property at Dallas-Fort Worth International Airport that is located within the City of Fort Worth as Tax Abatement Reinvestment Zone No. 91 A, City of Fort Worth, Texas, for construction of a corporate headquarters facility for American Airlines, Inc.; 2. Adopt the attached ordinance designating Tax Abatement Reinvestment Zone No. 91A, City of Fort Worth, Texas, pursuant to and in accordance with Chapter 312 of the Texas Tax Code; and 3. Amend City Secretary Contract No. 47341, to reflect that the property subject to abatement under the Agreement includes the property located in Tax Abatement Reinvestment Zone No. 91A, City of Fort Worth, Texas. DISCUSSION: On November 10, 2015, the City Council adopted M&C G-18605 designating Tax Abatement Reinvestment Zone No. 91, City of Fort Worth, Texas, and approved execution of a Tax Abatement Agreement with American Airlines, Inc. (Company), and the Dallas/Fort Worth International Airport Board for development of a corporate headquarters facility (Project) on property at Dallas-Fort Worth International Airport located within the City of Fort Worth (City Secretary Contract No. 47341). Under the Tax Abatement Agreement, the City has agreed to abate a maximum of between 75 percent and 90 percent of the incremental real and personal property taxes from the site for a period of one year provided that Company expended at least $200 million in real property improvements by December 31, 2019 on property in the reinvestment zone. Company now wishes to construct the Project with multiple buildings, which would require a portion of the Project to be constructed not only on land within the Existing Zone, but also on land within the Zone proposed. In order for this property to be covered under the Tax Abatement Agreement, the City Council must also designate this property as a reinvestment zone. As required by Chapter 312 of the Texas Tax Code, a public hearing must be conducted regarding the creation or expansion of a Reinvestment 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 Lognaime: 17ED TARIZ91-A Page 1 of 2 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 likely, as a result of the designation, to contribute to the expansion of the Company's 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 the existing Tax Abatement Agreement to be amended, has expired. The term of the proposed Zone will be five years from the date of adoption of the attached ordinance and may be renewed for periods not to exceed five years each. The property included in the City of Fort Worth Reinvestment Zone No. 91 consists of a 97 acre tract, with an established base year of 2015. The 27-acre tract of land to be included in the expanded City of Fort Worth Reinvestment Zone No. 91A, will establish a base year of 2017 for improvements that occur within this zone. Staff recommends the expansion of Reinvestment Zone No. 91 and amending City Secretary Contract No. 47341 to include the new property in the Tax Abatement Agreement. The proposed Zone is located in COUNCIL DISTRICT 5. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION /CERTIFICATION: The Director of Finance certifies that approval of this Agreement will have no material effect on the Fiscal Year 2017 budget. While no current year impact is anticipated from this action, any effect on expenditures and revenues will be budgeted in future fiscal years and will be included in the long-term financial forecast. FUND IDENTIFIERS (FIDs): TO _ Fundi Department ccoun Project Program ctivity Budget # moun ID IDYearLReference 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: Robert Sturns (212-2663) Logname: 17ED TARIZ91-A Page 2 of 2