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HomeMy WebLinkAboutOrdinance 22765-06-2017 ORDINANCE NO. 22765-06-2017 AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE CITY OF FORT WORTH AS "TAX ABATEMENT REINVESTMENT ZONE NUMBER NINETY-FIVE, 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 tax abatement, as authorized by and in accordance with Chapter 312 of the Code; and WHEREAS, all property in the Zone is located in that area of the City depicted in Exhibit "A" of the Tax Abatement Policy as "Other Central City", which is one of the areas defined in the Tax Abatement Policy as a "Target Area"; and WHEREAS, Smith & Nephew, Inc. or an associated affiliate ("Company") intends to expand its existing facility for increased manufacturing capacity and intends to expend or cause to be expended at least $4,700,000.00 in real property improvements and Ordinance No.22765-06-2017 Page 1 of 5 Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety-Five, City of Fort Worth,Texas $21,000,000.00 in business personal property which will be installed at the site (collectively, "Improvements"); and WHEREAS, Company has applied for a real and personal property tax abatement from the City in return for the construction and installation of the Improvements in the Zone and compliance with certain other employment and spending commitments that will foster economic development in the Zone and the City in general; and WHEREAS, on June 13, 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 June 4, 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.22765-06-2017 Page 2 of 5 Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety-Five, 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.22765-06-2017 Page 3 of 5 Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety-Five, City of Fort Worth,Texas 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 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-Five, City of Fort Worth, Texas." Because all property in the Zone is located in a Target Area (Other Central City), this project is eligible for tax abatement pursuant to and in accordance with Section 3 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, the remaining portions, sections or parts of sections of this Ordinance shall be and remain Ordinance No.22765-06-2017 Page 4 of 5 Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety-Five, City of Fort Worth,Texas 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. ADOPTED AND EFFECTIVE: June 13, 2017 APPROVED AS TO FORM AND LEGALITY: By: Peter Vaky, Deputy C' ttorney ary J. KAW, eityigecretary M&C: G-19025 Ordinance No.22765-06-2017 Page 5 of 5 Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety-Five, City of Fort Worth,Texas EXHIBIT "A" BOUNDARY DESCRIPTION OF ZONE Tract 1-A of the S.C. Inman Survey, Abstract No. 824, being more particularly described by metes and bounds as follows: BEGINNING at a post at a fence comer at the intersection of the west line of said Inman Survey with the north line of West Vickery Boulevard; THENCE North 00° 34' West along the west line of said Inman Survey and along the east line of Chamberlin Arlington Heights, Second Filing, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the plat recorded in Volume 63, Page 40, PRTCT, and along a fence 1196.85 feet(Deed Call 1192.8 feet)to a post for corner; THENCE North 89° 36'East, 190.8 feet to a point fur comer in a creek; THENCE South 89°36' East along said creek 311.9 feet to a point for corner; THENCE South 80° 35' East 47.52 feet (Deed Call, South 51° 52' East; 50.0 feet) continuing along said creek to a point for corner, said point being the northwest corner of a tract conveyed by Robert W. Driskell and wife, Pattie Driskell to the City of Fort Worth by Deed recorded in Volume 3440, Page 136, DRTCT; THENCE South 00° 42' East (Deed Call, South 00° 34' East) along the west line of said City of Fort Worth Tract, 739.9 feet to a post for corner in the north line of West Vickery Boulevard; THENCE South 66° 57' West(Deed Call, South 67° 30' West) along the north line of said West Vickery Boulevard, 432.6 feet to the POINT OF BEGINNING and containing 411,858 square feet of land or 9.455 acres and being the same tract conveyed by Joe S. Driskell to Driskell Investments, Inc., by Deed recorded in Volume 6587, Page 744, DRTCT. FORTWORTS Tax Abatement Reinvestment Zone No. 95 4900 West Vickery Blvd, Fort Worth, Texas 76107 "Exhibit A" 3XwrwM7 ;mom RGOV LU - �" UVE T iHl 0 WB HU EN - 776 '7 '���� ' I .,� f e. 'jw 95 Maw 1 ►J ' lumpt " ARM nNow. w-Z _ AP i -1 �� ,. Copyright 2017 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 6/13/2017 - Ordinance No. 22765-06-2017 DATE: Tuesday, June 13, 2017 REFERENCE NO.: G-19025 LOG NAME: 17ED TARIZ95 SUBJECT: Conduct Public Hearing and Adopt Ordinance Designating Property at 4900 W. Vickery Boulevard as Tax Abatement Reinvestment Zone No. 95, City of Fort Worth, Texas, for Expansion of an Existing Medical Manufacturing Facility for Smith & Nephew, Inc. (COUNCIL DISTRICT 3) RECOMMENDATION: It is recommended that the City Council: 1. Conduct a public hearing concerning the designation of property at 4900 W. Vickery Boulevard as Tax Abatement Reinvestment Zone No. 95, City of Fort Worth, Texas, for expansion of an existing medical manufacturing facility for Smith & Nephew, Inc.; and 2. Adopt the attached ordinance designating Tax Abatement Reinvestment Zone No. 95, 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. 95, City of Fort Worth, Texas, is for the property located at 4900 W. Vickery Boulevard Smith & Nephew, Inc. (Company), is considering the expansion of an existing manufacturing facility at this site. The proposed project will result in at least $25.7 million in real and business personal property investment ($4.7 million for improvements at the facility and $21 million in business personal property that will be installed in the facility). This site is located in an area of the City identified in the City's General Tax Abatement Policy (Resolution No. 4647-06-2016) as a Target Area (Other Central City). As required by Chapter 312 of the Texas Tax Code, a public hearing must be conducted regarding the creation 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 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 and may be renewed for periods not to exceed five years each. Logname: 17ED TARIZ95 Page 1 of 2 The proposed Zone is located in COUNCIL DISTRICT 3. 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 Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID Year (Chartfield 2) FROM _ r7t� artment 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 TARIZ95 Page 2 of 2