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HomeMy WebLinkAboutOrdinance 19896-09-2011ORDINANCE NO. 19896 -09 -2011 AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE CITY OF FORT WORTH AS "TAX ABATEMENT REINVESTMENT ZONE NUMBER SEVENTY -FOUR, 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, Frac Tech Services, LLC ( "Company ") wishes to relocate its industrial pump manufacturing operations to the Zone, specifically 4601 Gold Spike Drive, which is located in the Railhead Industrial Park. Company intends to expend or cause to be expended at least $10,875,000 in real property improvements and $50,500,000 in non - inventory taxable personal property ( "Improvements ") on that site as part of this relocation to the Zone; 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 Page I 19896-09-2011 Ordinance Designating Tax Ahatetnent Rcinvcstmcnt Zone Number Seventy -Four, City of Fort Worth, Texas 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 September 13, 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 September 2, 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 2 1 9896- 09 -20I Ordinance Designating Tax Abatement Reinvestment Zone Number $e�enty -Four, 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. Section 2. DESIGNATION OF ZONE. Page3 19x96 -09 -2011 Ordinance Designating Tax Abatement Reinvestment Zone Number Seventy -Four, City of Fort Worth, Fcxas 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 a commercial /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 -Four, City of Fort Worth, Texas." This project is eligible for commercial /industrial tax abatement pursuant to Section 4.1 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 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. Page 4 19896 -09 -2011 Ordinance Designating Tax Abatement Reinvestment Zone Number Seventy -Four, City of Fort Worth, Texas ADOPTED AND EFFECTIVE: September 13, 2011 APPROVED AS TO FORM AND LEGALITY: B Y Peter Vaky Deputy City Attorney M &C: G -17374 Page 5 19896 -09 -2011 Ordinance Designating Tax Abatement Reinvestment Zonc Number Scv,enty -Four, City of Fort Worth, Texas EXHIBIT "A" BOUNDARY DESCRIPTION OF ZONE BEING a tract of land in the S.A. & M. G. Railroad Company Survey, Abstract No. 1464, City of Fort Worth, Tarrant County, Texas, and being all of Lot 2R, Block 2 of Railhead Fort Worth Phase IV, an addition to the City of Fort Worth, Tarrant County, Texas, according to the plat thereof recorded in Cabinet A, Slide 11612, of the Plat Records, Tarrant County, Texas (P.R.T.C.T.), and being more particularly described as follows: BEGINNING at a 1/2 -inch iron rod with a cap stamped "Wier & Assoc., Inc." found at the southeasterly corner of said Lot 2R, Block 2, said point being at the intersection of the westerly line of Gold Spike Drive right -of -way (68 feet wide) and the northerly line of Meacham Boulevard right -of -way, (96 feet wide), said point being the beginning of a curve to the left South 45 degrees 00 minutes 16 seconds 14.23 feet continuing left with a radius of 1583.91 feet and whose chord bears South 87 degrees 48 minutes 04 seconds West, a distance of 92.91 feet continuing Westerly crossing a 1/2 inch iron rod with a cap stamped "Wier & Assoc., Inc" bear South 34 degrees 43 minutes 52 seconds East 0.21 feet and continuing Westerly South 88 degrees 31 minutes 22 seconds West 51.30 feet and continuing curving left with a radius of 1586.91 feet and whose chords bears South 73 degrees 38 minutes 51 seconds West 584.47 feet crossing a 1/2 rod stamped "Wier Assoc., Inc" and continuing South 63 degrees 02 minutes 07 seconds West 113.53 feet to the Southwest corner of said Lot 2R marked with a %2 inch iron rod stamped "Wier & Assoc., Inc. "; THENCE North 27 degrees 10 minutes 09 seconds West 39.80 feet to iron rod stamped "Wier & Assoc., Inc." and curving left a radius of 5680.15 feet whose chord bears North 20 degrees 41 minutes 12 seconds West a distance of 1282.70 feet along the easterly right of way of Chicago Rock Island & Pacific R.R. and ending on at the northwest corner of Lot 2R marked by a 1/2 inch iron rod stamped "Wier & Assoc., Inc." with a cap stamped "Trans System "' THENCE, North 62 degrees 02 minutes 33 seconds West 0.45 feet bearing South 89 degrees 29 minutes 48 seconds East 1293.84 feet to a 1/2 inch iron rod stamped "Wier & Assoc., Inc." with a cap stamped "Field Bush 5213 "marking the southeast corner of Lot 2R; THENCE South 59 degrees 16 minutes 07 seconds West 0.75 feet bearing South 00 degrees 20 minutes 46 seconds West a distance of 993.07 feet to the POINT OF BEGINNING AND CONTAINING 1,207,432 square feet or 27.719 acres of land, more or less. 19896 -09 -2011 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 9/13/2011 - Ordinance No, 19896 -09 -2011 DATE: Tuesday, September 13, 2011 LOG NAME: 17RIZFRACTECH REFERENCE NO.: G -17374 SUBJECT: Adopt Ordinance Designating Tax Abatement Reinvestment Zone No. 74, City of Fort Worth, Texas, for Property Located 4601 Gold Spike Drive in the Railhead Industrial Park (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. 74, City of Fort Worth, Texas for the property located at 4601 Gold Spike Drive in the Railhead Industrial Park; and 2. Adopt the attached ordinance that designates Tax Abatement Reinvestment Zone No. 74, 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. 74, City of Fort Worth, Texas (the Zone) is for property located at 4601 Gold Spike Drive in Railhead Industrial Park. Frac Tech Services, LLC, is considering the relocation of its industrial pump manufacturing operations to the Zone in order to allow the company to expand its marketing capabilities. As required by Chapter 312 of the Texas Tax Code, a public hearing must be conducted regarding the creation of a Tax Abatement 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. Tax Abatement Reinvestment Zone No. 74 is located in COUNCIL DISTRICT 2. FISCAL INFORMATION / CERTIFICATION: Logname: 17RIZFRACTECH Page I of 2 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) Robert Sturns (8003) Logname: 17RIZFRACTECH Page 2 of 2