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HomeMy WebLinkAboutOrdinance 22853-08-2017ORDINANCE NO. 22853-08-2017 APPROVING AND ADOPTING THE FINAL SERVICE PLAN FOR PUBLIC IMPROVEMENT DISTRICT NO. 18 (THE TOURISM PID) FOR FISCAL YEAR 2018; LEVYING SPECIAL ASSESSMENTS ON PROPERTIES IN THE TOURISM PID TO PAY THE COSTS OF SERVICES PROVIDED IN ACCORDNACE WITH THE FINAL SERVICE PLAN; SETTING CHARGES AND LIENS AGAINST PROPERTY IN THE DISTRICT AND AGAINST THE OWNERS THEREOF; PROVIDING FOR THE COLLECTION OF THE SPECIAL ASSESSMENTS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on August 29, 2017 the City Council adopted Resolution No. 4837-08-2017, establishing Public Improvement District No. 18 (Tourism PID) (the "PID") in accor•dance with Section 372.0035 and other applicable sections of Chapter 372, Texas Local Government Code and approving a seivice plan outlining proposed supplemental services to be provided for the special benefit of the properties located in the PID and the estimated costs of such services; and WHEREAS, under Section 372.013, Texas Local Government Code, the City Council annually must review and approve the annual budget for special, supplemental services to be provided in the PID (the `�Services") and to determine the amount of assessment that is to be levied against property in the PID in order to pay for the costs of such services; and WHEREAS, the Services to be provided in Fiscal Year 2018 and their estimated costs are as follows: Incentives & Sales Efforts Marketing (Promotion/Advertising) Site Visits & Familiarization Tours Event Funding Application Pool Operations/Research/Administration One Time City Administrative Fee Total Budget Expenses Estimated Operating Reserve Total Expenses $1,474,744 $1,214,495 $ 346,998 $ 260,249 $ 156,499 $ 17,000 $3,469,985 $0 $3,469,985 The total budgeted cost of the Services is $3,469,985.00, the entirety of which will be funded from assessments levied on and collected fiom properties located in the PID that contain hotels with one hundred (100) or more guest rooms and that are subject to payment of City hotel occupancy taxes pursuant to Chapter 32, Article II of the City Code, as set forth in Exhibit "A". attached hereto and hereby made a pai-t of this Ordinance for all purposes (such properties hereinafter being referred to as "Hotel Parcels" and the hotels located thereon being referred to as "Qualifying Hotels"); and Ordinance No. 22853-08-2017 Page 1 of 7 WHEREAS, it is proposed that Hotel Parcels located in the PID be assessed at a rate of two percent (2%) of the consideration paid for occupancy of any sleeping room furnished by the Qualifying Hotels located thereon, which assessments shall be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code; and WHEREAS, in accordance with Section 372.016, Texas Local Gover�nment Code, the Services and proposed assessment roll for Fiscal Year 2018 were presented in a public hearing conducted by the City Council on August 29, 2017 (the "Public Hearing") and have been on file in the office of the City Secretary for public inspection; and WHEREAS, notice of the Public Hearing was published on August 13, 2017 in the Fort Worth Star-Teleg��am, a newspaper of general circulation in the City, and was also mailed on August 11, 2017 to all record owners of property in the PID, and all persons desiring to be heard were given a full and fair oppot-tunity to be heard at the Public Hearing; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION l. The Public Hearing is hereby closed and any and all protests and objections, whether herein enumerated oi• not, are hereby overruled. SECTION 2. The City Council, from all evidence before it, including all information provided to it and considered in the Public Hearing, finds that the assessments described herein on Hotel Parcels should be made and levied in a manner which results in imposing the costs of the Services on Qualifying Hotels that are similarly benefitted from the provision of those Ser�ices. The apportionment of those costs will be based on the special benefits accruing to the Qualifying Hotels on account of the Services provided. As a result, those Qualifying Hotels that sell more guest rooms will pay a greater poi-tion of the costs of the Services because those properties will have received a greater benefit from the promotions and marketing comprising the Services. The City Council further finds that this method of assessment is fair and equitable, and results in an apportionment of the costs of the Services that complies with applicable law. SECTION 3. In accordance with Section 372.017, Texas Local Government Code, in order to pay the costs of the Services provided during Fiscal Year 2018, effective January 1, 2018 the City hereby levies a special assessinent against Hotel Parcels in the amount of two percent (2%) of the consideration paid for occupancy of any sleeping room furnished by Qualifying Hotels located thereon, which assessments shall be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code. Ordinance No. 22853-08-2017 Page 2 of 7 The first collection of assessments hereunder shall be made at the same time hotel occupancy taxes are collected on and after• January 1, 2018. SECTION 4. The assessments levied hereunder, together with reasonable attorney's fees and cost of collection, if incurred, are hereby declared to be and are made a lien upon the Hotel Parcels and Qualifying Hotels, and are a personal liability and charge against the real and true owners of such properties, whether such owners ar•e correctly named herein or not. Such liens shall be and constitute the first enforceable lien and claim against the Hotel Parcels and Qualifying Hotels, superior to all other liens and claims, except state, county, school district and city ad valorem taxes. A copy of this Ordinance may be filed with the County Clerk of the county in which the Hotel Parcel and Qualifying Hotel are located, and when so filed shall constitute complete and adequate legal notice to the public concerning the liens hereby assessed against the respective parcels of propel-ty and the owners thereof. The sums assessed against the Hotel Parcels shall, be and become due at the same time that hotel occupancy taxes on the Qualifying Hotels located thereon become due, and shall become delinquent if not paid by the applicable deadlines established by Chapter 32, Ai�ticle II of the City Code. The entire amount assessed against each Hotel Parcel shall bear penalty and interest, from and after the respective due date at the same rate as prescribed Chapter 32, Article II of the City Code. SECTION 5. If default shall be made in the payment of any assessments, collection thereof shall be enforced by suit in any court of competent jurisdiction, and said City shall exercise all of its lawful powers to aid in the enforcement and collection of said assessments. SECTION 6. The total amount assessed against the respective parcels of property and the owners thereof, is in accordance with the proceedings of the City hereto and is permitted by applicable law. SECTION 7. Full power to make and levy reassessments and to cor�ect mistalces, errors, invalidities or irregularities in the assessments are, in accordance with the law in force in this City, vested in the City. SECTION 8. In any suit upon any assessment or reassessment, it shall be sufficient to allege the substance of the provision recited in this Ordinance and that the Recitals hereto are in fact true, and further allegations with reference to the proceedings relating to such assessment and reassessment shall not be necessary. Ordinance No. 22853-08-2017 Page 3 of 7 SECTION 9. 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 shall remain in full force and effect. SECTION 10. This Ordinance shall be cumulative of 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 11. This Ordinance shall talce effect and be in full force and effect contemporaneously upon the effectiveness of Resolution No. 4837-08-2017. AND IT IS SO ORDAINED. APPROVED AS TO FORM AND LEGALITY: � Peter Valcy, Deputy City o ey M&C: BH-367 Adopted: 08-29-17 ATTEST: Mary J. Kayser Ordinance No. 22853-08-2017 Page 4 of 7 EXHIBIT "A" QUALIFYING HOTELS IN THE TOURISM PID Account Name Address City, State, Zip RMS Aloft Downtown Fort Worth 300 W. 3rd St. Fort Worth, TX 180 76102 American Airlines Training and 4200 American Blvd Fort Worth, TX 299 Conference Center 76155 76155 Autograph Collection Downtown Fort 512 Main St. Fort Worth, TX 165 Worth 76102 Budget Suites of America - Fossil Creelc 3500 NE Loop 820 Fort Woi�th, TX 366 76137 Candlewood Suites - DFW South 4200 Reggis Drive Fort Woi-th, TX 174 76155 Courtyard by Marriott - Alliance 3001 Amador Dr. Fort Worth, TX 127 76177 Courtyard by Maniott - Blackstone 601 Main Street Fort Worth, TX 203 76102 Courtyard by Mai�riott - Fossil Creek 3751 NE Loop 820 Fort Worth, TX 154 76137 Courtyard by Mar�iott - Stocicyards 2537 Main St. Fort Worth, TX 124 76164 Courtyard by Marriott - University Drive 3150 Riverfront Fort Worth, TX 130 76107 Courtyard by Mai�iott - West at Cityview 6400 Overton Ridge Foi�t Worth, TX 104 Boulevard 76132 Crossland Economy Studios - Fossil 3804 Tanacross Fort Worth, TX 124 Creek 76137 Dalworth Inn 812 E. Felix Street Fort Worth, TX 120 76115 DFW Aizport Marriott South 4151 Centrepoi�t Fort Worth, TX 295 Boulevard 76155 DFW Mar�•iott Hotel and Golf Club at 3300 Championship Foi�t Worth, TX 286 Champions Circle Plcwy 76177 Embassy Suites Hotel - Downtown Fort 600 Commerce Street Fort Worth, TX 156 Worth 76102 Extended Stay America - City View 5831 Overton Ridge Fort Worth, TX 104 Blvd 76132 Fairfield Inn & Suites Downtown 1010 Houston Fort Worth, TX 110 76102 Ordinance No. 22853-08-201'7 Page 5 of 7 Fairfield Inn & Suites Fossil Creek 3701 NE Loop 820 Fort Worth, TX 106 76137 Hampton Inn and Suites - West/I-30 2700 Green Oalcs Fort Worth, TX 105 76177 Hampton Inn and Suites - DFW South 4201 Reggis Court Fort Worth, TX 116 76155 Hampton Inn and Suites Downtown Fort 210 E. 9th Street Foz�t Worth, TX 245 Worth 76102 Hawthot-n Suites - University 1701 South University Fort Worth, TX 120 Drive 76107 Hilton Fort Worth 815 Main Street Fort Worth, TX 294 76102 Hilton Garden Inn - Fort Worth Alliance 2600 Westport Parkway Fort Worth, TX 127 Airport 76177 Hilton Garden Inn - Medical Center 912 Northton Street Fort Worth, TX 157 76104 Holiday Inn - DFW Airport South 14320 Centre Station Fort Worth, TX 143 Road 76155 Holiday Inn Express - Downtown 1111 W Lancaster Fort Worth, TX 132 76102 Holiday Inn Noi�th - Fossil Creek 4635 Gemini Place Fort Worth, TX 126 76106 Homewood Suites - Fossil Creek 3701 Tanacross Fort Worth, TX 137 76137 Homewood Suites - Medical Center 2200 Charlie Lane Fort Worth, TX 157 76104 Hyatt Place - Cityview 5900 Cityview Street Fort Worth, TX 127 76132 Hyatt Place - Stocicyards 132 E Exchange Fort Worth, TX 100 76164 La Quinta Inn and Suites - Foi�t Worth 4700 North Street Fort Worth, TX 133 North 76137 La Quinta Inn and Suites - Southwest 4900 Bryant Irvin Foi�t Worth, TX 128 76132 Omni Foi-t Worth Hotel 1300 Houston Fort Worth, TX 614 76102 Quality Inn and Suites - Cattle Baron 2700 S Cherry Lane Fort Worth, TX 109 76116 Radisson - Fort Worth South Hotel 100 Alta Mesa East Fort Worth, TX 247 76134 Radisson Hotel - Foi�t Worth Fossil Ci•eelc 2540 Meacham Street Fort Woi-th, TX 247 76106 Ordinance No. 22853-08-2017 Page 6 of 7 Residence Inn - Alliance Aiiport 13400 North Freeway Fort Worth, TX 111 76177 Residence Inn - Cultural District 2500 Museum Way Fort Worth, TX 150 76107 Residence Inn - Fossil Creelc 5801 Sandshell Drive Fort Worth, TX 114 76137 Sheraton Fort Worth Hotel and Spa 1701 Commerce Street Fort Worth, TX 429 76102 SpringHill Suites by Marriott - 3250 Lovell Street Fort Worth, TX 145 University 76107 Stay Express Hotel Fort Worth 2000 Beach Street Fort Worth, TX 168 76111 TownePlace Suites Downtown 805 E Belknap Fort Worth, TX 140 76102 TownePlace Suites Univeisity W. Vickery & Trinity Foi-t Worth, TX 128 Street 76107 WoodSpring Suites Fort Worth 3501 NE Loop 820 Fort Worth, TX 121 76137 Woi�thington Renaissance Hotel 200 Main Street Fort Worth, TX 504 76102 Ordinance No. 22853-08-2017 Page 7 of 7 u N � C � > a � u 3 � N .� 0 � � O � `o LL o a � � � � o 0 � � � � � � o m �� o N m � a � � v o � n`�i m� N o"�o `-' o } t� O V rn u1 d� N i� 0 tn F- N ci lll ei L} t/T VT VT t/T t/T LT N V�' � O V O n V a v.�t�moo � d; a a N a^-I m O tn f� �mtl �m c^-I N I� � M N i� .� W V? t/T VT t/� VT N t/? N t�0 'a � V tll tnD � ' l0 N tO m m o rn o`�o .`�-+ a m p oo E m m�n �n m o0 N t0 y N N t0 .N W N t? tA tA t/T V} V} VT h h lf1 l0 N 00 h .N-1 'D 00 Vl O N � ' �-1 N �� 16 l�D � tll 0�0 N � Q V1 � 1� N lD V M tfl N lD N N lD W L} L? 1R t/T N VT VT Lf O� O O O O O' O N d' o m m�� �� o � N � lD .-1 l0 V M N N l0 y� N N �O .N W tA N N tA V} N i? 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O p`aj � U `ti N � � N p N +-' � � a � w � k � °i a O y� � O � U 6 V� � 3 � C i" O y U y W �, C O p O O a�.� � U N O C O � � N � � U � � � O `a w v N ' o e o v v a w o � � z° z° City of Fort Worth, Texas Mayor and Council Communication DATE: Tuesday, August 29, 2017 REFERENCE NO.: BH-367 LOG NAME: 2518PIDFWTOURISMPID SUBJECT: Conduct Public Benefit Hearing for Fort Worth Public Improvement District No. 18 (Tourism PID), Concerning the Proposed Budget and Ten-Year Service Plan and Proposed Assessment Roll, Adopt Ordinance Levying Special Assessments for Fiscal Year 2018, Adopt Appropriation Ordinances to Increase Estimated Receipts in the Fort Worth Public Improvement District No. 18 Fund for Fiscal Year 2018 and Authorize Execution of an Agreement with Fort Worth Tourism Public Improvement District Corporation or a Related Entity to Manage the Tourism PID (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Conduct a public benefit hearing concerning the proposed special assessments on property located in Public Improvement District 18 (Tourism PID) for Fiscal Year 2018; 2. Approve the attached Fiscal Year 2018 budget and ten-year service plan for the Tourism PID; 3. Adopt the attached ordinance levying special assessments on property located in the Tourism PID, beginning January 1, 2018; 4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Tourism PID Fund for Fiscal Year 2018 in the amount of $3,469,985.00 available funds; 5. Authorize the transfer in the amount of $17,000.00 for administrative fees from the Tourism PID Fund in Fiscal Year 2018 to the General Fund contingent upon the adoption of the proposed ordinance levying assessments; 6. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the General Fund PID Revenue Account in the amount of $17,000.00 from available funds; and 7. Authorize the execution of an Agreement with Fort Worth Tourism Public Improvement District Corporation or another entity approved by the City Manager and the Fort Worth Convention and Visitors Bureau to provide management and improvement services for the Tourism Public Improvement District during Fiscal Year 2018. DISCUSSION: The purpose of this benefit hearing is to receive comments from the public regarding the Fiscal Year 2018 Budget and ten-year service plan for the Tourism PID and the proposed assessments to be levied on each property in the PID for the 2018 Tax Year. Following the public hearing, it is recommended that the City Council approve the attached budget and ten-year service plan of the PID, adopt the attached ordinance Logname: 2518PIDFWTOURISMPID Page 1 of 3 levying the proposed assessments and adopt the attached appropriation ordinance allocating estimated receipts to and estimating expenditures from the Tourism PID's fund. Notice of this benefit hearing was published in the newspaper and mailed to all record owners of property in the Tourism PID in accordance with state law. The improvements and services to be provided in the PID during Fiscal Year 2018 and the associated costs thereof are as follows: Improvements Incentives & Sales Efforts Total Budgeted Costs $ 1,474,744.00 Marketing (Promotion/Advertising) � $1,214,495.00 Site Visits & Familiarization Tours Event Funding Application Pool �Operations/Research/Administration One Time City Administrative Fee BudgetExpenses Estimated Operating Reserve Total Expenses $ 346, 998.00 $ 260,249.00 $ 156,499.00 $ 17, 000.00 $3,469,985.00 $ 0.00 $3,469,985.00 The total budgeted costs of the improvements are in the amount of $3,469,985.00. Of this amount, $3,469,985.00 will be funded by assessments collected on hotel night revenues generated in district hotels with 100 or more rooms by levying special assessments at a rate of two percent. The petition submitted by property owners liable for assessments in the Tourism PID proposed that the City enter into a contract with Fort Worth Tourism Public Improvement District Corporation, a to-be-formed non-profit entity, to manage the operations of the PID in conjunction with the Fort Worth Convention and Visitors Bureau. Because this particular corporation technically has not been created yet, it is recommended that the City Council authorize execution of a contract with the corporation or another entity subsequently approved by the City Manager and the Fort Worth Convention and Visitors Bureau to perform management services necessary for operation of the Tourism PID. The cost for such management shall not exceed the authorized amount budgeted for "Administration" in the PID's service and assessment plan. The Tourism PID is located on properties in ALL COUNCIL DISTRICTS. A Form 1295 disclosure form for the Management Corporation will be submitted prior to execution of the Management Agreement. Logname: 2518PIDFWTOURISMPID Page 2 of 3 FISCAL INFORMATION / CERTIFICATION: The Finance Director certifies that upon approval of the above recommendations, funds will be available in the Fiscal Year 2018 operating budget, as appropriated, of the Tourism PID Fund and the General Fund. 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 bv: Oriqinatinq Department Head: Additional Information Contact: Susan Alanis (8180) Kirk Slaughter (2501) Kirk Slaughter (2501) Logname: 2518PIDFWTOURISMPID Page 3 of 3