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HomeMy WebLinkAboutOrdinance 19728-06-2011ORDINANCE NO. 19728-06-2011 AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE CITY OF FORT WORTH AS "TAX ABATEMENT REINVESTMENT ZONE NUMBER SEVENTY-TWO, 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 22, 2010 of Resolution No. 3895-06-2010 (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 commercial/industrial tax abatement, as authorized by and in accordance with Chapter 312 of the Code; and WHEREAS, GE Transportation ("Company") intends to modify the existing distribution center to a locomotive manufacturing facility. GE Transportation intends to expend or cause to be expended at least $20,000,000 in real property improvements and $40,000,000 in non-inventory taxable personal to modify the existing 670,000 square foot Page i Ordinance Designating Tax Abatement Reinveshnent Zone Number Seventy-Two, City of Fort Worth, Texas distribution center located at 12850 Three Wide Drive, to a 900,000 square foot manufacturing facility. ("Improvements"); and WHEREAS, Company has applied for a real and personal property tax abatement from the City in return for the construction 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 7, 2011 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 27, 2011, 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: Page Ordinance Designating Tax Abatement Reinvestment Lune Number Seventy-Two, 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. Page 3 Ordinance Designating Tax Abatement Reinvestment Zone Number Seventy-Two, 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 acommercial/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 Seventy-Two, City of Fort Worth, Texas." This project is eligible for commercial/industrial tax abatement pursuant to Section 4.2 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 maybe 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 in full force and effect and shall not in any way be impaired or affected by such decision, opinion or judgment. Page a Ordinance Designating Tax Abatement Reinvestment Zone Number Seventy-Two, City of Fort Worth, Texas Section 5. IMMEDIATE EFFECT. That this Ordinance shall take effect upon its adoption. ADOPTED AND EFFECTIVE: June 7, 2011 APPROVED AS TO FORM AND LEGALITY: By: a Peter Vaky A~ City Attorney De~u ~y M&C: G-17297 Page s Ordinance Designating Tax Abatement Rein~~estment Zone Number Seventy-Two, City of Fort Worth, Tcxas EXHIBIT "A" BOUNDARY DESCRIPTION OF ZONE BEING a tract of land situated in the Jeremiah Ivy Survey, Abstract No. 649, Denton County, Texas, being all of LOT 2, BLOCK 1 of the final plat of Lots 1 & 2, Block A & Lot 2, Block 1, Speedway Distribution Center, an addition to Denton County, Texas as recorded in 2009-31, Plat Records, Denton County, Texas (PRDCT), all of that tract of land as described in deed to Industrial Property Fund X, L. P. (hereafter referred to as IPFX tract), recorded in 2008-48300, Deed Records, Denton County, Texas (DRDCT), being a portion of that tract of land as described in deed to Industrial Developments International (Texas), L.P. (hereafter referred to as IDI tract), recorded in 2007-44535, DRDCT, being a portion of the SECOND TRACT as described in deed to Mitchell, Mitchell & Mitchell Partners, Ltd. (hereafter referred to as Mitchell SECOND TRACT), recorded in 4498, Page 2108, DRDCT, and being more particularly described as follows: BEGINNING at a 1/2" rebar with a yellow plastic cap stamped Goodwin & Marshall set (hereafter referred to as 1/2" rebar capped set) at the intersection of the north line of Short Track Court (Lot 1, Block A, a 60' wide private road, emergency access, fire lane, utility and drainage easement per 2009-31, PRDCT), with the west line of Three Wide Drive (Lot 1, Block A, a 68' wide private road, emergency access, fire lane, utility and drainage easement per 2009-31, PRDCT), being the most easterly southeast corner of said LOT 2, BLOCK 1 and said IPFX tract; THENCE along the north line of said Short Track Court and the south line of said LOT 2, BLOCK 1 and said IPFX tract, as follows: S 36°09'07" W, a distance of 14.46 feet to a 1/2" rebar capped set at the point of a curvature of a non tangent curve to the right, having a radius point that bears N 09°33'28" W, 470.00 feet; Northwesterly, along said curve, having a central angle of 22°33'28", an arc distance of 185.04 feet, and a chord that bears N 88°16'44" W, 183.85 feet to a 1/2" rebar capped set at the point of tangency; N 77°00'00" W, a distance of 1222.76 feet to a 1/2" rebar capped set at the point of curvature of a non tangent curve to the left, having a radius point that bears S 77°37'23" W, 70.00 feet; Northwesterly, along said curve, having a central angle of 154°37'23", an arc distance of 188.91 feet, and a chord that bears N 89°41'18" W, 136.58 feet to a 1/2" rebar capped set; THENCE N 77°00'00" W, departing said Short Track Court, radial to said curve, along the south line of said LOT 2, BLOCK 1, and said IPFX tract, a distance of 49.95 feet to a 1/2" rebar capped set in the east line of the B.N. & S.F. Railroad Company right of way (apparent 100' R.O.W., no record found) at the southwest corner of said LOT 2, BLOCK 1 and said IPFX tract; THENCE N 13°00'00" E, along the east line of said B.N. & S.F. Railroad Company right of way, the west line of said LOT 2, BLOCK 1 and said IPFX tract, at a distance of 975.00 feet passing a 1/2" rebar capped set at the northwest corner of said LOT 2, BLOCK 1 and said IPFX tract, at a distance of 1007.48 feet passing a 1/2" rebar capped set at the northwest corner of said IDI tract and the southwest corner of a remainder portion of said Mitchell SECOND TRACT, continuing a total distance of 1394.86 feet to the northwest corner of the herein described tract of land, from which a 1/2" rebar capped set at a point of curvature in the east line of said B.N. & S.F. Railroad Company right of way bears N 13°00'00" E, 544.13 feet; THENCE departing the east line of the said B.N. & S.F. Railroad Company right of way, traversing said Mitchell SECOND TRACT, as follows: S 77°00'00" E, a distance of 1330.72 feet; S 00°24'49" E, a distance of 4.25 feet; S 03°52'44" W, a distance of 264.63 feet; S 00°23'04" E, at a distance of 125.37 feet passing the south line of said remainder portion of said Mitchell SECOND TRACT and the north line of said IDI tract, at a distance of 148.47 feet passing a 1/2" rebar capped set at the northwest corner of the existing platted terminus of said Three Wide Drive and the northeast corner of said Lot 2, Block 1 and said IPFX tract, continuing along the west line of said Three Wide Drive and the east line of said LOT 2, BLOCK 1 and said IPFX tract, a total distance of 283.56 feet to a 1/2" rebar capped set at the point of a curvature of a curve to the right, having a radius of 462.00 feet; THENCE along the west line of said Three Wide Drive, the east line of said LOT 2, BLOCK 1, and said IPFX tract, as follows: Southwesterly, along said curve, having a central angle of 05°51'56", an arc distance of 47.30 feet, and a chord that bears S 02°32'54" W, 47.28 feet to a 1/2" rebar capped set at the point of tangency; S 05°28'52" W, a distance of 265.00 feet to a 1/2" rebar capped set at the point of curvature of a curve to the left, having a radius of 538.00 feet; Southwesterly, along said curve, having a central angle of 05°32'47", an arc distance of 52.08 feet, and a chord that bears S 02°42'28" W, 52.06 feet to a 1/2" rebar capped set at the point of tangency; S 00°03'55" E, a distance of 360.88 feet to a 1/2" rebar capped set at the point of curvature of a curve to the left, having a radius of 538.00 feet; Southeasterly, along said curve, having a central angle of 06°55'52", an arc distance of 65.08 feet, and a chord that bears S 03°31'51" E, 65.04 feet to the POINT OF BEGINNING and containing 1,986,558 square feet or 45.605 acres of land. Tax Abatement Reinvestment Zone No. 72 12850 Three Wide Drive Fort Worth, Texas 76177 "Exhibit A" City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 6/7/2011 -Ordinance No. 19728-06-2011 DATE: Tuesday, June 07, 2011 REFERENCE NO.: G-17297 LOG NAME: 17RIZGE SUBJECT: Adopt Ordinance Designating Tax Abatement Reinvestment Zone No. 72, City of Fort Worth, Texas, for Expansion of the Existing Distribution Center at 12850 Three Wide Drive to a Manufacturing Facility (COUNCIL DISTRICT 2) RECOMMENDATION: It is recommended that the City Council: 1. Hold a public hearing concerning the designation of Tax Abatement Reinvestment Zone No. 72, City of Fort Worth, Texas; and 2. Adopt the attached ordinance that designates Tax Abatement Reinvestment Zone No. 72, 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. 72, City of Fort Worth, Texas, (Zone) is for property that is located at 12850 Three Wide Drive. The exact boundaries of the proposed zone are described in Exhibit A of the attached Ordinance. GE Transportation is considering the occupancy and expansion of the site for use as a locomotive manufacturing facility. As required by Chapter 312 of the Texas Tax Code, a public hearing must be conducted regarding the creation of the Zone. 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. Tax Reinvestment Zone No. 72 is located in COUNCIL DISTRICT 2. FISCAL INFORMATION /CERTIFICATION: Logname: 17RIZGE Page 1 ~f 2 The Financial Management Services Director certifies that this action will have no material effect on City funds. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers CERTIFICATIONS: Submitted for City Manager's Office bv• Originating Department Head• Susan Alanis (8180) Jay Chapa (5804) Additional Information Contact: Logname: 17RIZGE Robert Sturns (8003) Page 2 of 2