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HomeMy WebLinkAboutOrdinance 23551-01-2019ORDINANCE NO. 23551-01-2019 AN ORDINANCE REPEALING AND TERMINATING ALL DESIGNATED NEIGHBORHOOD EMPOWERMENT REINVESTMENT ZONES IN THE CITY OF FORT WORTH; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, pursuant to the City Council's adoption on May 16, 2017, by Resolution No. 4782-05-2017 (M&C G-19010), as it may be amended from time to time, 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, on April 17, 2001, Resolution No. 2721, the City Council elected to participate in tax abatements in the Stop Six Neighborhood Empowerment Reinvestment Zone and on April 22, 2003, Resolution No. 2938, the City Council elected to be eligible to participate in tax abatement authorized by Chapter 312 of the Texas Tax Code in all designated Neighborhood Reinvestment Zones and established a Neighborhood Empowerment Zone Tax Abatement Policy governing tax abatement agreements for properties located in Neighborhood Empowerment Zones; and WHEREAS, on April 17, 2001, the City Council designated the Stop Six Area as a Neighborhood Empowerment Zone by Resolution No. 2721 (re -designated April 15, 2014 by Resolution No. 4315-04-2014) and as Neighborhood Empowerment Reinvestment Zone No. 1 by Ordinance Number 14767 (re -designated April 15, 2014 by Ordinance No. 21206-04-2014) to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on November 19, 2002, the City Council designated the Evans & Rosedale Area as a Neighborhood Empowerment Zone by Resolution No. 2889 (re -designated November 6, 2012 by Resolution No. 4143) and as Neighborhood Empowerment Reinvestment Zone No. 4 by Ordinance No. 15377 (re -designated December 12, 2017 by Ordinance No. 23049-12-2017) to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on November 26, 2002, the City Council designated the Magnolia Village Area as a Neighborhood Empowerment Zone by Resolution No. 2893 (re -designated December 7, 2010 by Resolution No. 3947-12-2010) and as Neighborhood Empowerment Reinvestment Zone No. 5R by Ordinance No. 15343 (re -designated January 26, 2016 by Ordinance No. 22066-01- 2016) to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on January 6, 2004, the City Council designated the Berry/University Area as a Neighborhood Empowerment Zone by Resolution No. 3030 (re -designated April 15, 2014 by Resolution No.4313-04-2014) and as Neighborhood Empowerment Reinvestment Zone No. 13 by Ordinance No. 15815 (re -designated April 15, 2014 by Ordinance No. 21204-04-2014) to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on November 26, 2002, the City Council designated the Polytechnic/Wesleyan Area as a Neighborhood Empowerment Zone by Resolution No. 2894 (re- designated November 6, 2012 by Resolution No. 4144) and as Neighborhood Empowerment Reinvestment Zone No. 6 by Ordinance No. 15344 (re -designated December 12, 2017 by Ordinance No. 23050-12-2017) to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on November 26, 2002, the City Council designated the Hemphill/Berry Area as a Neighborhood Empowerment Zone by Resolution No. 2892 (re -designated December 7, 2010 by Resolution No. 3946-12-2010) and as Neighborhood Empowerment Reinvestment Zone No. 7R by Ordinance No. 19462-12-2010 (re -designated January 26, 2016 by Ordinance No. 22067-01-2016)to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and Page 2 of 8 Ordinance 23551-01-2019 Ordinance Terminating all designated NERZ City of Fort Worth, Texas WHEREAS, on January 21, 2003, the City Council designated the Rolling Hills Area as a Neighborhood Empowerment Zone by Resolution No. 2908 (re -designated December 7, 2010 by Resolution No. 3949-12-2010) and as Neighborhood Empowerment Reinvestment Zone No. 8R by Ordinance No. (re -designated March 1, 2016 by Ordinance No. 22113-03-2016) to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on May 27, 2003, the City Council designated the Historic Handley Area as a Neighborhood Empowerment Zone by Resolution No. 2950 (re -designated December 7, 2010 by Resolution No. 3945-12-2010) and as Neighborhood Empowerment Reinvestment Zone No. 9R by Ordinance No. 19461-12-2010 (re -designated January 26, 2016 by Ordinance No. 22069- 01-2016) to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on May 27, 2003, the City Council designated the Woodhaven Area as a Neighborhood Empowerment Zone by Resolution No. 2951 (re -designated May 21, 2013 by Resolution No. 4210-05-2013) and as Neighborhood Empowerment Reinvestment Zone No. 10 by Ordinance No. 20760-05-2013 (re -designated May 15, 2018 by Ordinance No. 23223-05-2018) to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on August 19, 2003, the City Council designated the Riverside Area as a Neighborhood Empowerment Zone by Resolution No. 2984 (re -designated August 20, 2013 by Resolution No. 4233-08-2013) and as Neighborhood Empowerment Reinvestment Zone No. 11 by Ordinance No. 15645 (re -designated August 21, 2018 by Ordinance No. 23345-08-2018) to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on January 27, 2004, the City Council designated the Trinity Park Area as a Neighborhood Empowerment Zone by Resolution No. 3039 (re -designated December 7, 2010 by Page 3 of 8 Ordinance 23551-01-2019 Ordinance Terminating all designated NERZ City of Fort Worth, Texas Resolution No. 3950-12-2010) and as Neighborhood Empowerment Reinvestment Zone No. 15R by Ordinance No. 15841 (re -designated January 26, 2016 by Ordinance No. 22070-01-2016) to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on February 3, 2004, the City Council designated the Lake Arlington Area as a Neighborhood Empowerment Zone by Resolution No. 3041 (re -designated April 15, 2014 by Resolution No. 4314-04-2014) and as Neighborhood Empowerment Reinvestment Zone No. 16 by Ordinance No. 15854 (re -designated April 15, 2014 by Ordinance No. 21205-04-2014) to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on March 27, 2007, the City Council designated the Berryhill/Mason Heights Area as a Neighborhood Empowerment Zone by Resolution No. 3468 (re -designated August 15, 2017 by Resolution No. 4832-08-2017) and as Neighborhood Empowerment Reinvestment Zone No. 34 by Ordinance No. 17460 (re -designated August 15, 2017 by Ordinance No. 22840-08- 2017) to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on January 6, 2009, the City Council designated the Oakland Corners Area as a Neighborhood Empowerment Zone by Resolution No. 3704 (re -designated April 22, 2014 by Resolution No. 4317-04-2014) and as Neighborhood Empowerment Reinvestment Zone No. 36 by Ordinance No. 18425 (re -designated April 22, 2014 by Ordinance No. 21218-04-2014) to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on December 7, 2010, the City Council designated the Northside Area as a Neighborhood Empowerment Zone by Resolution No. 3948 and as Neighborhood Empowerment Reinvestment Zone No. 39 by Ordinance No. 19464 (re -designated January 26, 2016 by Ordinance No. 22072-01-2016) to promote (1) the creation or rehabilitation of affordable housing in the zone, Page 4 of 8 Ordinance 23551-01-2019 Ordinance Terminating all designated NERZ City of Fort Worth, Texas or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on December 7, 2010, the City Council designated the 28th Street/Meacham Area as a Neighborhood Empowerment Zone by Resolution No. 3944 (re -designated November 12, 2013 by Resolution No. 4260-11-2013) and as Neighborhood Empowerment Reinvestment Zone No. 37 by Ordinance No. 19460 (re -designated March 1, 2016 by Ordinance No. 22112-03- 2016) to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on April 5, 2011, the City Council designated the Six Points Area as a Neighborhood Empowerment Zone by Resolution No. 3981 and as Neighborhood Empowerment Reinvestment Zone No. 38 by Ordinance Number (re -designated June 21, 2016 by Ordinance No. 22285-06-2016) to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on September 24, 2013, the City Council designated the Northeast 820/I-30 Area as a Neighborhood Empowerment Zone by Resolution No. 4248 and as Neighborhood Empowerment Reinvestment Zone No. 40 by Ordinance Number 20974-09-2013 to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on December 15, 2015, the City Council designated the Highland Hills Area as a Neighborhood Empowerment Zone by Resolution No. 4553 and as Neighborhood Empowerment Reinvestment Zone No. 92 by Ordinance Number 22005-12-2015 to promote (1) the creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on April 11, 2017, the City Council designated the Como/Sunset Heights Area as a Neighborhood Empowerment Zone by Resolution No. 4769 and as Neighborhood Empowerment Reinvestment Zone No. 2 by Ordinance No. 22671-04-2017 to promote (1) the Page 5 of 8 Ordinance 23551-01-2019 Ordinance Terminating all designated NERZ City of Fort Worth, Texas creation or rehabilitation of affordable housing in the zone, or (2) an increase in economic development in the zone, or (3) an increase in the quality of social services, education or public safety provided to the residents of the zone; and WHEREAS, on January 29, 2019, the City Council approved an amendment to the Basic Incentives and Tax Abatement Policy applicable to Neighborhood Empowerment Reinvestment Zones (NERZ) to amend project eligibility requirements for commercial, industrial, multi -family, mixed-use and community facility projects, clarification of design requirements for eligible projects, clarification of ineligible projects and clarification of fees not waived; and WHEREAS, the City Council finds that the Trinity Park and Northeast 820/I-30 NERZ areas have achieved the public purpose of increasing public health, safety and welfare and neighborhood empowerment zones are no longer necessary to achieve these public purposes and the aforementioned NERZs should be dissolved and terminated; and WHEREAS, the City Council finds that it is in the best interests of the citizens of Fort Worth to dissolve and terminate the remaining aforementioned NERZ areas to allow those areas to be reconfigured into six NERZ areas to provide for greater efficiency in the administration of the NERZ Basic Incentives and Tax Abatement Policy program. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: Section 1. FINDINGS. The facts and recitations contained in the preamble of this Ordinance are hereby found and declared to be true and correct. Section 2. TERMINATION. The following NERZs, listed below and as shown in Attachment A, are dissolved and terminated as of the date of this Ordinance: • Stop Six/Sunset Heights • Trinity Park • Evans & Rosedale • Lake Arlington Page 6 of 8 Ordinance 23551-01-2019 Ordinance Terminating all designated NERZ City of Fort Worth, Texas • Magnolia Village • Polytechnic/Wesleyan • Hemphill/Berry • Rolling Hills • Historic Handley • Woodhaven • Riverside • Berry/University • Berryhill/Mason Heights • Oakland Corners • Northside • 28th Street/Meacham • Six Points • Northeast 820/I-30 • Highland Hills • Como/Sunset Heights Section 5. 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. ADOPTED AND EFFECTIVE: January 29, 2019 APPROVED AS TO FORM AND LEGALITY: By: Melinda Ramos Sr. Assistant City Attorney M&C: G-19468 ATTEST: /A Mary J. Page 7 of 8 Ordinance 23551-01-2019 Ordinance Terminating all designated NERZ City of Fort Worth, Texas EXHIBIT A Page 8 of 8 Ordinance 23551-01-2019 Ordinance Terminating all designated NERZ City of Fort Worth, Texas EXISTING NEIGHBORHOOD EMPOWERMENT ZONES ATTACHMENT A Neighborhood a IPi Empowerment Zones \ ?iamplrli� f atie�oy:c'�, fCri ry R�mhi.-rl Hula E i �.roa ApA2167017 N ~ CCIhFL.N'. HRJ I'a!V' 14Fr 0,G N�F.YI�j.e'AtiLPN.'4bm J A Vf.M JOF AIHJCA/li rarrwe4 ur. y,.�� .xK htlA ara Atl .seu.w. ye,,xxK...iwrccu-,Jsnn, wu arl �V[C5M+4't.s r�r +c Fi W!F-10.JIW +S IJMLA•JM JG WFYM'.YS�INMY �+Jls'+$FL4 GF K#Va6MIBAR PJS+A�4 � ��1...,�_y/!A HRaf�9P T+f [If* W YIY�'MRI� lNIF0. NGNEPOASWWV SIT �xI J{lIWaC1 D('WrJm19.� 1<L City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 1/29/2019 Ordinance No. 23551-01-201.9 Si R�spluon No. 5041-01=20.19. DATE: Tuesday, January 29, 2019 LOG NAME: 19NEZTERMINATIONALL REFERENCE NO.: G-19468 SUBJECT: Adopt Resolution to Dissolve and Terminate all Existing Neighborhood Empowerment Zones and Adopt Ordinance to Terminate and Repeal all Existing Neighborhood Empowerment Reinvestment Zones (COUNCIL DISTRICTS 2, 3, 4, 5, 8 and 9) RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached Resolution to dissolve and terminate the twenty Neighborhood Empowerment Zones listed in the Resolution; and 2. Adopt the attached Ordinance to terminate and repeal the twenty Neighborhood Empowerment Reinvestment Zones listed in the Ordinance. DISCUSSION: In November 2017, Mayor and Council Communication (M&C G-19157) was brought forward to terminate the Berry/University, Magnolia Village and Trinity Park Neighborhood Empowerment Zones (NEZ). After discussions with community stakeholders, the terminations of the three NEZs were withdrawn from City Council action on April 17, 2018. The City Council then directed staff to conduct a comprehensive study of the Neighborhood Empowerment Zone Program. The City of Fort Worth entered into a professional services agreement City Secretary Contract (CSC No. 50753) with Ricker/Cunningham LLC to evaluate the NEZ Program and determine the feasibility of maintaining, modifying or eliminating certain Neighborhood Empowerment Zone areas with the City. Ricker/Cunningham and the Neighborhood Services staff held several meetings throughout 2018 with various community stakeholders to receive input on the NEZ program. Reports on the study and stakeholder input were presented to the City Council in May and again in September 2018. After final input from City Council and community stakeholders, staff is proposing changes to the NEZ Program Policy and administration processes and changes to the boundaries of neighborhood empowerment zones. A separate Mayor and Council Communication will be presented to the City Council for consideration of changes to the NEZ Program, Policy and administrative procedures. The changes recommended to the boundaries for neighborhood empowerment zone boundaries include the termination of twenty existing NEZ areas and the corresponding NEZ Reinvestment Zones and the designation of six neighborhood empowerment zones and adoption of six neighborhood empowerment reinvestment zones. The attached resolution and ordinance will dissolve the existing twenty NEZs in the City and repeal and terminate the existing NEZ Reinvestment Zones as shown in attachment A. Those NEZs and NEZ Reinvestment Zones are as follows: Logname: 19NEZTERMINATIONALL Page 1 of 2 (1) 28th Street -Meacham (2) Berryhill — Mason Heights (3) Berry/University (4) Como/Sunset Heights (5) Evans/Rosedale (6) Six Points (7) Stop Six (8) Handley (9) Hemphill/Berry (10) Highland Hills (11) Lake Arlington (12) Magnolia Village (13) Northeast 820 and 1-30 (14) Northside (15) Oakland Corners (16) Polytechnic/Wesleyan (17) Riverside (18) Rolling Hills (19) Trinity Park (20) Woodhaven A separate Mayor and Council Communication will be presented to the City Council to designate six new Neighborhood Empowerment Zones and NEZ Reinvestment Zones. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that approval of the above recommendations will have no material effect on the Fiscal Year 2019 budget. Any tax abatement approved under the future policy shall be incorporated into the City's long-term financial forecast. FUND IDENTIFIERS (FIDs): TO Fund Department ccoun Project Program ctivity Budget Reference # mount ID ID Year (Chartfield 2) Fund Department ccoun Project JProgram ctivity Budget I Reference # moun ID ID I Year I (Chartfield 2) CERTIFICATIONS: Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: Fernando Costa (6122) Aubrey Thagard (8187) Sarah Odle (7316) Logname: 19NEZTERMINATIONALL Page 2 of 2