HomeMy WebLinkAboutOrdinance 19860-08-2011ORDINANCE NO. 19860 -08 -2011
AN ORDINANCE TERMINATING TAX INCREMENT
REINVESTMENT ZONE NUMBER ELEVEN, CITY OF FORT
WORTH, TEXAS (SOUTHWEST PARKWAY TIF);
AUTHORIZING THE DISTRIBUTION OF TAX INCREMENT
FUNDS OF THE ZONE TO TAXING UNITS PARTICIPATING IN
THE ZONE IN ACCORDANCE WITH THE TEXAS TAX CODE;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, on December 7, 2004 the City Council of the City of Fort Worth,
Texas (the "City Council ") adopted Ordinance No. 16220 designating Tax Increment
Reinvestment Zone Number Eleven, City of Fort Worth, Texas, generally referred to as
the Southwest Parkway TIF (the "Zone "); and
WHEREAS, the Zone was created to help finance the construction of public
improvements associated with the planned State Highway 121 project (the "Southwest
Parkway /Chisholm Trail Project "), as more specifically set forth in the preliminary
project and financing plans developed for the Zone by the City Council in 2004 in
accordance with Section 311.003(b) of the Texas Tax Code; and
WHEREAS, Ordinance No. 16220 provides that the Zone will expire on the
earlier of December 31, 2025 (the "Stated Termination Date ") or an earlier termination
date designated by subsequent ordinance, or the date on which all project costs, tax
increment bonds and interest on those bonds have been paid or otherwise satisfied in full;
and
WHEREAS, since the Zone was created, other funding mechanisms for financing
the Southwest Parkway /Chisholm Trail Project have been deemed more feasible and
convenient; and
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Ordinance Terminating Tax Increment Reinvestment Zone Number Eleven,
City of Fort Worth, Texas
WHEREAS, accordingly the City Council finds that the need for the Zone, as
stated in Ordinance No. 16220, no longer exists; and
WHEREAS, in accordance with Section 311.017(a)(1) of the Texas Tax Code,
the City Council wishes to terminate the Zone;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS:
Section 1.
FINDINGS.
That after reviewing all information before it regarding 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.
1.2. The purpose of the Zone, as more specifically set forth in the preliminary project
and financing plans developed for the Zone by the City Council in 2004 in
accordance with Section 311.003(b) of the Texas Tax Code can be achieved
through other, more feasible and convenient funding mechanisms. As a result, the
need for the Zone no longer exists.
1.3. In accordance with Section 311.017(a)(1) of the Texas Tax Code and Section 4 of
Ordinance No. 16220, the City Council has authority to terminate the Zone on an
earlier date than the Stated Termination Date. The procedural requirements of
Section 311.007(c) of the Texas Tax Code apply only to instances in which there
is a desire to extend the termination date of a tax increment reinvestment zone.
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Ordinance Terminating Tax Increment Reim- estment Zone Number Eleeen,
City of Fort Worth, Texas
Section 2.
DISSOLUTION OF THE ZONE.
That the City Council hereby terminates Tax Increment Reinvestment Zone
Number Eleven, City of Fort Worth, Texas.
Section 3.
DISTRIBUTION OF FUNDS.
That the City Council hereby directs the City Manager or his authorized designee
promptly to distribute all monies in the Tax Increment Fund of the Zone to the taxing
units participating in the Zone, including the City, in proportion to the respective amounts
of deposits made by such taxing units during the term of the Zone.
Section 4.
IMMEDIATE EFFECT.
That this Ordinance shall take effect and be in full force and effect from and after
its adoption.
AND IT IS SO ORDAINED.
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Ordinance Terminating Tax Increment Reinvestment Zone Numher Eleven,
City of Fort Worth, Texas
ADOPTED AND EFFECTIVE: August 23, 2011
APPROVED AS TO FORM AND LEGALITY:
By:
Peter Vaky
Deputy City Attorney
M &C: G -17367
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Ordinance Terminating Tax Increment Reineestment Zone Number Eleven,
City ofFort Worth, Texas
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/2312011 - Ordinance No= 19860 -08 -2011
DATE: Tuesday, August 23, 2011
LOG NAME: 17TIF11 DISSOLVE
REFERENCE NO.: G -17367
SUBJECT:
Adopt Ordinance Terminating Tax Increment Reinvestment Zone No. 11, City of Fort Worth, Texas,
Southwest Parkway TIF and Authorize the Return of Any Tax Increment Deposits to Participating Taxing
Entities (COUNCIL DISTRICT 3)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance terminating Tax Increment Reinvestment Zone No. 11, City of Fort
Worth, Texas, Southwest Parkway TIF; and
2. Authorize the return of contributions to the taxing entities that have been deposited into the Southwest
Parkway TIF Fund by participating taxing units.
DISCUSSION:
Tax Increment Reinvestment Zone No. 11 (Southwest Parkway TIF) was established by City Council on
December 7, 2004, pursuant to Ordinance No. 16220 to help fund arterial connections, right -of -way
acquisition and other public improvements associated with the construction of Southwest Parkway (State
Highway 121).
Because the overall Southwest Parkway construction project was delayed as funding Agreements and
negotiations with Union Pacific Railroad took several years to complete, the Southwest Parkway TIF
increment did not materialize as originally projected. The delay in construction caused a corresponding
delay in new development along the corridor. The Southwest Parkway TIF does not have any
commitments as the final Project and Financing Plan was never approved by City Council. No TIF funds
have been expended.
In order to move the project forward, the City Council approved including all right -of -way acquisition costs
associated with the project in the City's regular debt funding schedule. Consequently, the TIF increment is
no longer necessary to provide the funding needed to pay the City's debt service associated with the
project. In April 2011, the Texas Transportation Commission approved a Federal Transportation
Infrastructure Loan Agreement for over $400 million to help fund State Highway 161 in Irving and Grand
Prairie and the Southwest Parkway /Chisholm Trail project in Fort Worth and Johnson County. The
Agreement will use the state's gas tax revenues as collateral for up to 20 years on the two projects. Initial
improvements have already begun on the project.
Since improvements have already begun without the use of TIF funding and the future use of TIF funds is
not anticipated at this time, and since the large majority of any increment to be collected in the TIF will be
City of Fort Worth tax revenue, City staff recommends that City Council terminate the Southwest Parkway
TIF in order to allow future tax increment to flow into the general fund accounts of the participating taxing
Logname: 17TIF 11 DISSOLVE Page 1 of 2
entities.
Under Ordinance No. 16220, the Southwest Parkway TIF will expire on December 31, 2025. However,
Section 311.017(a) of the Texas Tax Code allows the City Council to adopt an ordinance establishing an
earlier termination date for a TIF. Upon termination of the Southwest Parkway TIF, approximately
$338,356 will be distributed between the City of Fort Worth, Tarrant Regional Water District, and Tarrant
County. City staff anticipates that such distributions will occur within 30 days.
The projects contained within the Plan are located in COUNCIL DISTRICT 3.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on City
funds.
FUND CENTERS:
TO Fund /Account/Centers
CERTIFICATIONS:
Submitted for City Manager's Office by
Originating Department Head:
Additional Information Contact:
FROM Fund /Account/Centers
Susan Alanis (8180)
Jay Chapa (5804)
Marguerite Allen (2235)
Robert Sturns (8003)
Logname: 17TIFI IDISSOLVE Page 2 of