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HomeMy WebLinkAboutResolution 2376f. A Resolution RESOLUTION NO.~Z 3'? G RESOLUTION AUTHORIZING AN INTERLOCAL AGREEMENT WITH THE CITIES OF EULESS AND DALLAS FOR THE SHARING OF REVENUES GENERATED WITHIN THE BOUNDARIES OF DiFW INTERNATIONAL AIRPORT WHEREAS, a portion of the City of Euless (Euless) is located within the geographical boundanes of the Dallas/Fort Worth International Airport (the Airport); and WHEREAS, Euless desires to increase economic development and fob creation opportunities for that portion of Euless located within Airport boundaries as those boundaries currently exist or as they maybe changed in the future (the Property); and WHEREAS, in exchange for the City of Fort Worth (Fort Worth), the City of Dallas (Dallas), and the Airport's Board (the Boazd) encouraging and giving consideration to the development of future economic development projects on the Property Euless is willing to shaze revenues with Fort Worth and Dallas equivalent to certain tax and other revenues generated from the property• and WHEREAS, a proposed Interlocai Agreement (attached hereto) between Fort Worth, Dallas, the Board and Euless has been negotiated which provides for the sharing of amounts equal to Increased Revenues and Additional Revenues, as defined therein, generated from the Property• NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS 1 That the City Manager is authorized to execute the attached interlocal Agreement. 2. That the City Manager and City Attorney shall be authorized to make any nonsubstantive revisions to the Interlocal Agreement that may be necessary pnor to rts execution. 3 That the City Manager is authorized to execute such other documents and instruments as may be necessary to effectuate this transaction. 4 That the City Attorney shall approve as to form and legality any legal instruments or documents pnor to their execution by the City Manager 5 That this resolution shall take effect from and after its adoption by the City Council and the approval of the Interlocal Agreement by Dallas, Euless and the Boazd. CITY OF FORT WORTH CITY OF FORT WORTH • INTERLOCAL AG ~ <`NT STATE OF TF•7i;A5 COUNTIES OF DALLAS AND 7'ARRANT § ~ S, the DallaslFort Worth International Airport Board, a joint bard of the Cities of Dallas, Texas and Fort Worth, Texas (hereinafter `Board"), the City of Dallas, 1 axes (hereinafter `Dallas"), the City of Fort Worth, Texas (hereinafter `Fort Worth") and the City of Euless, Texas (hereinafter "Euless") desire to enter into this interlocal agteernent for the sharing of Increased Revenues and Additional Revenues as defined herein, and 'UVJEZFREAS, Euless desires to increase economic development and job creation opportunities for that portion of Euless located within the geographical boundaries of the U!I{ W International Airport as it exists to date and/or as it inay be expanded as pemtitted by law (the Property}; and WY~RFAS, in exchange for the Boazd, Dallas and Fort Worth encourasing and giving consideration to the development of future economic development projects to be located on the Property Euless is willing to share revenues with Dallas and Fort Worth equivalent to a port,on of the Increased Revenues aad Additional Revenues generated from the Property and W~RFSS, the Board, Dallas, Fort Worth, aad Euless mutually desire to enter into an arrangement to share an amount equal to the Increased Revonites and Additional Revenues received and/or collected by Euless within the Property NOW, T ~'REEFORE, for and in consideration of the mutual consideration, teens, acid provisions contained herein, Dallas, Fort Worth, Euless and rho Board hereby enter Hilo this Iuterlocal Agreement (hereinafter "A,grcement"). L For purposes of this Agreement, the following shall have the tneaivngs set forth below A, "Property" shall mean that portion of Euless located within the geographical boundaries of the b/FW International Airport as it exists to date and/or as it may be changed as permitted by law B "Base Year" shall mean the 1996 calendar year enditag on December 31 1996 • C. "Base Year Revenues" shall be $778,133, which is the sum of the following amocints. (1) $53X,000, which amount has been determined by the parties hereto as representing the amount of all (i) ad valorem tax revenues for real and personal property (ii) sales and use tax, (iii) mixed beverage tax and (iv) other revenues received, credited to and/or collected by Euless in the Base Year from the Property excluding mmticipal count revenues, plus (2) $24?,Y33, which amount has been determined by the parties hereto as the arnou,ut of all municipal court revenues vicluding flnES, fees and court costs resulting from citations written on the Property excluding fees and casts collected as required by state law as determined by an independent audit funded by the Board, for the 1996 calendar year for citations written oa the Property D `Increased Revenues" shall be an amount equal to the sum of the following amounts collected, credited to and/or received by Euless in any calendar year and which are generated from the Property, and which are in excess of Base Year Revenues, (i) the annual maintenance and operation portion of the ad valorem tax levy on real property and personal properly, i,e, excluding the portion necessary for general obligation debt service, (ii) sales and use taxes (excluding those special sales tax levies dedicated for specific purposes, such as crime districts, ad valorem tax reduction, 4B Development Corporations, Transit Authorities and other taxes sadlor assessments collected and dedicated for specific purposes authorized by law), (iii) that portion of any utility franchise tax received from the Property (iv) municipal court revenues including flues, fees and rotor costs resulting from citations written oiz the Property excluding fees grid costs whuh are required by state law to be dedicated to a specific fund and/or purpose or which are mandated by state law to be assessed as an administrative cost or collectiota fee, (v) mixed beverages taxes, and (vi) and all other general revenue tax levies, save and except ".Additional Revenues" as defined below and such levies which are dedicated and utilized for specific purposes or are replacing taxes dedicated and utilized for specific proposes under requirements of state law E. "Additional Revenues" shall be an amount equal to the taxes authoriuid in Chapters 334 and 335 of the Local Government Code received, credited to, and/or collected by Euless in any calendar year and generated from the Property For each year of this Agreement, Euless agrees to share increased Revenues with Dallas and Fort Worth in the following percentages. one-third (113) to Euless and the remaining two- thirds (2/3) shall be shared by Dallas and Fort Worth in proportion to their respective ownership interest in the D/F W Airport. This Agreement does not, in az~y manner, create a guara~ttce to Euless that ai) amount equal to the Base Year Revenues will be received, credited to or collected by Euless. • 2 • ~ Except as provided in Section 'VIII (B) hereof, Euless further ag~~eos chat, if Additional Revenues are received, credited to andlor collected by Euless, such Additional Revenues shall be distributed in the following percentages. one-third (1/3) to Euless and the remaiuingtvo-thirds (2/3) shall be shared equally by Dallas and Fort Worth. IV Except as to Euless Reinvestment Zone Nw»ber One as same now exists, and as establishod by Ordinances No. 1163 and No l 198, and as to any 1~reeport 'l'ax Exemptions, Euless asreos that no other tax abatement agreements, Tax Increment rinattce (TlF) districts, Enterpzise Zones, Public Improvement Zones or any similar type special iuceutive plan will be cheated with respect to all or gay portion of the Property which would unpact Hny revenues due Dallas andlor Fort Worth hereunder, unless all parties agree in writing in advance to such a plan. Euless also agrees to levy and take ell necessary action to collect all taxes, fees, etc, which would be applicable against all properties, persons, individuals and corporations affected by this agreement. This paragraph shall not be construed as limiting the rights of the parties hereto, t® share in Increased Revenues and Additional Revenues that are not pledged to Euless Reinvestment Zone Number Oae. V This revenue shari~~g arrangement shall not be construed as affecting any Reve~tttes or Additional Revenues of Euless other than those Revenues or Additional Revenues gcucrated from the Property Revenues generated outside of the Property (including Revenues of Dallas and Fort Worth) shall not be considered when calculating Increased Revenues or Additional Revenges under this Agreement. Nothing in this Agreement should be construed as altering, changing or amending, in any way the tax status or exemptions for publicly owned property Nothing in this Agreement shall be deemed to be a pledge of wty specific tax or other revenues by Euless, it being tmderstood that any payments to be made by Euless. hereunder will be made from ctuYent revenues available for any municipal purpose. C. 3 VlL • This Agrcemer-t is designed to benefit all Parties including Euless, Dallas, Fort Werth, and the Board. More specifically, the Agreement is designed to more equitably distribute a portion of Revenues amongst the three Cities, while encouraging the further development and growth of DFW International Airport, The Cities of Dallas and Fort Worth and the Board agree that as a result of this Agreement, development opportunities within the Property which are consistent with the development policies of the Board, shall be encouraged. In an effort to encourage the growth and development of DFW International Airport and because of the close proxinuty of Euless' utilities to DFW Airport property, Euless shall permit tie-in and use of utilities by Airport tenants for Wose developments that fall within the Property under similar terms and conditions as permitted for other properties within the City of Culess. VIIL A. At the next scheduled Legislative Session of the Texas Legislature, and as Wray be required thereafter, Euless, Dallas, Fort Worth and the Board shall diligently seek a legislative validation of this Agreerxtent from the Texas Legislature, the e~tactment of legislation a~ntcnding the Texas Municipal Airports Act, Article 46d,14 (now Texas Transportation Code, §22,151 et seq) to Tully implement this Agreement by statute, if necessary and/or any other legislative modifications which might be required to ensure that all Increased Revenues and Additional Revenues received or collected by Euless within the boundaries of pFW International Airport, whether existing or new, shall 6e shared as described in the Agreement. • B In the event that legislative lotion necessary to fully implement the sharing of Additional Revenues pursuant to this Agreement is not secured by the eud of the second Legislative Session after the execution of this Agreement, Euless may thereafter take action to collect such Additional Revenues. In the event that legislative action is secured subseynent to the collective of Additional Revenues by Euless, such Additional Revenues shall thereafter be shared in accordance with this Agreement, except for that portion of such Additional Revenues as was pledged prior to the enactment of such legislative action to the holders of bonds or ether contractual debt issues to make debt service payments thereon. ]IX. All parties agree to provide a vigorous defense of this Agreement in the Event of litigation. The cost of such defense shall be apportioned based on the percentages specified in Section II hereof with respect to litigation concerning Increased Revenues, and Section 111 hereof, with respect to litigation concerning Additional Revonues. In the event of any adverse judicial decision or any other reason the anticipated sharing of Increased Revenues and/or Additional Revenues is not allowed, the parties agree to use their best efforts and cooperate with each other to enter into alternative arrangements to share revenues as contemplated herein • 4 X. The amount of Increased Revenues and Additional Kevenues generated in subsequent years shall be verified by the independent auditor of the City of Euless with the cost of such verification being apportioned based on the percentages specified in Section 11 hereof with respect to Increased Revenues, and Seotion III hereof, with respect to Additional Revenues. Dallas and Fort Worth, or their designated representatives, shall be entitled, no more frequently than atttxuslly to audit Euless' records of Increased Revenues and Additional Revenues. XL This Agreement shall be governed by the laws of the State of Texas acid tl~e applicable laws of the United States of America, and venue on any suit bmught hereunder shat! lie exclusively in Dallas or Tarrant County, Texas. xn case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respeot, such it2validity illegality or unenforceability shall not affect any other provision thereof, and in lieu of each provision of this Agreement that is illegal, invalid, or unenforceable, there shall be added a new provision to this Agreement as similar in terms to such illegal, invalid, or unenforceable provision as inay be possible and yet be legal, valid and enforceable, by means of good faith negotiation by the Parties to this Agreertient. XIIL This Agreement shall be perpetual and may only be terminated by the aiulual written agreement of all the Parties hereto. XN This Agreement shall become effective between the Parties hereto on the day of its approval by all of the City Councils of Dallas, Fort Worth and Euless and by the Board and shall continue in effect until it has been terminated according to this Agreement. Xv This Agreement tray be amended or modited by the mutual agreement of aU the Pat•tics hereto, in writing, to be attached to and incorporated Into this Agreement. XVL This Agreement contains all commitments and agreements of all the Parties, attd oral or written cotnmitmetits not contained herein shall have no force or effect to alter any terttt or condition of this Agreement. • 5 XV~ This Agreement shall be executed by the duly authorized official(s) of the Party as expressed in the approving resolution or order of the governing body of such Party a copy of each which is attached hereto. XVIII Jn the event that the Board, Dallas and Fort Worth eater into a future agreement with another jurisdiction located within the geographical boundaries of the Dl' W International Airport as it now exists and/or it may be changed for the sharing of Increased Revenucs and/or Additional Revenues, and that agreement provides that such jurisdiction shall retain a larger percentage of Increased Revenues and/or Additional Revenues than that retanied by Eulcss pursuant to tins Agreement, then in such event this Agreement shall be amended effective as of date of such future agreement to provide for Euless retention of tlae same percentage of future Increased Revenues and/or Additional Revenues hereunder XIX. This Agreement shall become null and void and of no further effect or eonsequenees, if the currently proposed Consolidated Rent-a-Car racility, the "Facility" (designed and to 6e operated such as to provide transfer of possession of the rent-a~car within the Property as provided by Chapters 334 and 335 of the Local Government Code) is not constructed and operating by March Ist, 2001 Provided, however, that in the event that construction and operation of the Facility is prevented or delayed by "force majeure" as defined hereiq, this Agreement shall not terminate and shall remain in full force and effect. 'rorce ntajeure" shall mean any contingency or cause beyond the reasonable control of the parties to this Agreement including, without limitation, acts of God or the public enemy war, riot, civil commotion, insurrection, governmental or de facto governmental action (unless directly caused by acts or omissions of the parties), fires, explosions or floods and strikes, EXECC!'TED on this, the day of 1998, THE CITY OF EULESS, TBXAS By' Tom Hart Title: City Manager Date: APPROVED AS TO FORM City Attorney, Bob McFarland 6 i DALLAS/FORT 'WORTH INTERNATIONAL AIRPORT BOARD $y. Jeffrey P Fegan Executive Director Date• APPROVED AS TO FORM DFW Airport Legal Counsel THE CITY OF DALLAS, TEXAS ~y. ~,`,. Title: Date: APPROVED AS TO FORM. Assistant City Attorney THE CITY OF FORT WORTH, TEAS By Title; Date: APPROVED AS TO FORM. Assistant City Attorney ~~ 7