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HomeMy WebLinkAboutOrdinance 23620-03-2019ORDINANCE NO.23620-03-2019 AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE CITY OF FORT WORTH AS "TAX ABATEMENT REINVESTMENT ZONE NUMBER NINETY-NINE, 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 January 29, 2019 of Resolution No. 5040-01-2019 (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 business expansion tax abatement, as authorized by and in accordance with Chapter 312 of the Code; and WHEREAS, Winner, LLC ("Company") wishes to expend or cause to be expended at least $50 million in real property improvements for the redevelopment of an existing data center located in the Zone, and Company intends to install new taxable tangible business personal property having a value of approximately $100 million in such facility (collectively, the "Improvements"); and Page l Ordinance No. 23620-03-2019 Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety -Nine, City of Fort Worth, Texas WHEREAS, Company expects that this project will create at least 4 new jobs once the Improvements are completed; and WHEREAS, Company has applied for real and business personal property tax abatements from the City in return for the installation 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 March 26, 2019 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 March 17, 2019, 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 Ordinance No. 23620-03-2019 Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety -Nine, 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 R 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 No. 23620-03-2019 9r&h wtac 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 business expansion 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 Ninety -Nine, City of Fort Worth, Texas." This project is eligible for commercial/industrial tax abatement pursuant to Section 6 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. Page 4 Ordinance No. 23620-03-2019 Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety -Nine, City of Fort Worth, Texas Section 5. IMMEDIATE EFFECT. That this Ordinance shall take effect upon its adoption. ADOPTED AND EFFECTIVE: March 26, 2019 APPROVED AS TO FORM AND LEGALITY: By:.'Ff Peter Vaky,m° Deputy City Attorney M&C: G-19518 N'tary J. Kay r , ' r City Secretary Page 5 Ordinance No. 23620-03-2019 Ordinance Designating Tax Abatement Reinvestment Zone Number Ninety -Nine, City of Fort Worth, Texas EXHIBIT "A" BOUNDARY DESCRIPTION OF ZONE DESCRIPTION OF 51.6570 ACRES BEGINNING at a 5/8" capped iron rod found for the most northerly northeast corner of said Lot 4R, the northwest corner of Lot 1, Block 3 of ALLIANCE GATEWAY NORTH ADDITION, an addition to the City of Fort Worth, Tarrant and Denton County, Texas according to the plat: thereof recorded in Instrument No. D207181295 of said Official Public Records and Volume X, Page 753 of said Plat Records and being in the south right-of-way line of Henrietta Creek Road, having an ostensible 110 foot right-of-way, as dedicated in Volume Y, Page 221 of said Plat Records; THENCE southerly and easterly along the common line of said Lot 4R and said Lot 1 the following: South 0°16'44" West, a distance of 810.00 feet to a capped 5/8" iron rod set marked "KHA" for a re- entrant corner of said Lot 4R and the southwest corner of said Lot F South 89'43' 16" East, a distance of 449.90 feet to a 5/8" capped iron rod found marked "PELOTON" for a northeast corner of said Lot 4R and the northwest corner of Lot 5R in Block 3 of ALLIANCE GATEWAY NORTH, an addition to the City of Fort Worth, Tarrant and Denton County, Texas according to the plat thereof recorded in Instrument No. D2151750766 of said Official Public Records; THENCE South 0° 16'44" West, along an east line of said Lot 4R and the west line of said Lot 5R, to and along the west line of 6R in said Instrument No. D2151750766, a distance of 1483.52 feet to a 5/8" capped iron rod set marked "KHA" for the southeast corner of said Lot 4R, the southwest corner of said Lot 6R and being in a north line of Lot 7 in Block 3 of ALLIANCE GATEWAY NORTH, an addition to the City of Fort Worth, Tarrant County, Texas according to the plat thereof recorded in Instrument No. D215150766 of said Official Public Records; THENCE generally westerly, northerly and westerly along the common line of said Lot 4R and said Lot 7 the following: South 72°25'59" West, a distance of 445.20 feet to a capped 5/8" iron rod set marked "KHA"; North 89°20'37" West, a distance of 602.74 feet to a capped 5/8" iron rod set marked "KHA"; North 0°39'23" East, a distance of 540.00 feet to a capped 5/8" iron rod set marked "KHA"; North 89"20'37" West, to and along the north line of Lot 10 in Block 3 of ALLIANCE GATEWAY NORTH, an addition to the City of Fort Worth, Tarrant County, Texas according to the plat thereof recorded Instrument No. D208290670 of said Official Public Records, a distance of 600.00 feet to an aluminum disk found marked "JPH SURVEYING" for a southwest corner of said Lot 4R, the northwest corner of said Lot 10 and being in the east right-of-way line of Park Vista Boulevard, having a 60 foot right-of-way as dedicated in Cabinet B, Slide 3361 of the Plat Records of Tarrant County, Texas; THENCE along a west line of said Lot 4R and said east right-of-way line of Park Vista Boulevard the following: North 0°39'23" East, a distance of 383.79 feet to an aluminum disk found marked "JPH SURVEYING" at the beginning of a tangent curve to the left; northwesterly direction, with said curve to the left, having a central angle of 35°41'03", a radius of 490.00 feet, an arc length of 305.17 feet and a long chord bearing and distance of North 1711 "09" West, 300.27 feet to a an aluminum disk found marked "JPH SURVEYING" for an angle point in said west line of Lot 4R and an east line of Tract 12 as described in the deed to AIL Investment, LP as recorded in Volume 9527, Page 1011 of the Deed Records of Tarrant County, Texas; THENCE northerly, easterly and northerly along the common line of said Lot 4R and said "Tract 12 the following: North 0°32'33" East, a distance of 18.43 feet to a an aluminum disk found marked "JPH SURVEYING" for the northwest corner of said Lot 4R and a re-entrant corner of said Tract 12; South 89°20'17" East, a distance of 312.04 feet to a 5/8" capped iron rod found for a re-entrant corner of said Lot 4R and a southeast corner of said Tract 12; North 0°39'23" East, a distance of 450.00 feet to a 5/8" iron rod found for a northwest corner of said Lot 4R and a northeast corner of said Tract 12 and being in the south line of a called 18.9 acre tract of land described in the deed to Texas Power and Light Company as recorded in Volume 338, Page 551 of said Deed Records; THENCE South 89"20'17" East, along a north line of said Lot 4R and the south line of said 18.9 acre tract, a distance of 617.05 feet to a capped 5/8" iron rod set marked "KHA" for a northeast corner of said Lot 4R and the southeast corner of said 18.9 acre tract; THENCE generally easterly and northerly along said Lot 4R the following: South 0°38'33" West, a distance of 29.86 feet to a 5/8" capped iron rod found at a southwest corner of said Lot 4R; South 89"20'52" East, a distance of 218.71 feet to a capped 5/8" iron rod set marked "KHA" for a re- entrant corner of said Lot4R; North 0°38'33" East, a distance of 780.93 feet to a capped 5/8" iron rod set marked "KHA" a northwest corner of said Lot 4R and being in said south right-of-way line of Henrietta Creek Road; THENCE South 89'43'17" East, along the north line of said Lot 4R and said south right-of-way line of Henrietta Creek Road, a distance of 105.03 feet to the POINT OF BEGINNING and containing 53.4036 acres or 2,326,260 square feet of land. Basis for bearings are based on the Texas Coordinate System of the North American Datum of 1983 (2011) EPOCH 2O10, North Central Zone 4202 (US Survey feet) from GPS observations using the RTK Cooperative Network. 4817-8832-523 8v.1 57634-3 00 Tax Abatement Reinvestment Zone No. 99 — Winner, LLC 14100 Park Vista Boulevard Fort Worth, TX, 76177 Copyright 2016CIty of Fort Worth. Unauthorized refiroductior, is a violation of applicable laws. This product is for informatmn a I purposes and may not have been prepared for or be suitable For ieg;41, enp nee ring, or sunraylnqr purposes. It does not represent an on -the ground Survey and represents only the approximate relative location of property boundaries -The City of Fort Worth assumes no responsibility fort the accuracy of said data. City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 3/26/2019 - Ordinance No. 23620-03-2019 DATE: Tuesday, March 26, 2019 LOG NAME: 17EDTARIZ99 REFERENCE NO.: G-19518 SUBJECT: Conduct Public Hearing and Adopt Ordinance Designating Tax Abatement Reinvestment Zone No. 99, City of Fort Worth, Texas, for Property Located at 14100 Park Vista Boulevard for Expansion of an Existing Data Center Facility (COUNCIL DISTRICT 7) RECOMMENDATION: It is recommended that the City Council: 1. Conduct Public Hearing concerning the designation of Tax Abatement Reinvestment Zone No. 99, City of Fort Worth, Texas, for property located at 14100 Park Vista Boulevard; and 2. Adopt the attached ordinance for the designation of Tax Abatement Reinvestment Zone No. 99, City of Fort Worth, Texas, pursuant to and in accordance with Chapter 312 of the Texas Tax Code. DISCUSSION: On May 19, 2015, the City Council adopted Ordinance No. 21757-05-2015, designating Tax Abatement Reinvestment Zone No. 90, City of Fort Worth, Texas, and approved execution of a Tax Abatement Agreement with Winner LLC, (City Secretary Contract No. 46727). Under the Tax Abatement Agreement, the City agreed to abate 10 percent of the incremental ad valorem taxes on real and business personal property owned by Winner LLC, (Company) provided that Company expended at least $250,000,000.00 on construction and equipment of a Facebook data center located on property in the reinvestment zone. The Tax Abatement Agreement also provides a mechanism for Company to acquire additional land adjacent to the site in order to expand the project footprint. On October 16, 2016, the City Council adopted Ordinance No. 22473-10-2016, designating Tax Abatement Reinvestment Zone No. 90-A, City of Fort Worth, Texas, and approved amendment of the Tax Abatement Agreement with Winner LLC, (City Secretary Contract No. 46727) to include additional improvements on property it acquired at 14101 and 14217 Independence Parkway. Winner LLC, now wishes to add additional improvements on property located at 14100 Park Vista Boulevard for the expansion of an existing Data Center facility. This land is adjacent to the current site and is eligible for Tax Abatement, as allowed under the Agreement, but the City Council must also designate this property as a reinvestment zone. As required by Chapter 312 of the Texas Tax Code, a Public Hearing must be conducted regarding the creation or expansion of a 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. o e: 17EDTARIZ99 Page 1 of 2 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 likely, as a result of the designation, to contribute to the expansion of the Company's 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 the existing Tax Abatement Agreement to be amended, has 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. The proposed Zone is located in COUNCIL DISTRICT 7. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that that approval of this Agreement will have no material effect on the Fiscal Year 2019 budget. While no current year impact is anticipated from this action, any effect on expenditures and revenues will be budgeted in future fiscal years and will be included in the long-term financial forecast. FUND IDENTIFIERS (FIDs): TO Fund Department ccouni Project Programctivity( Budget ( Reference #1mounj ( ID ID II Year ( Chartfield 2) FROM Department ccoun Project Program ctivity Budget Reference` moun 7u�l ID ID r 1 i CERTIFICATIONS: Submitted for Citv Manager's Office bv: Oriainatina Department Head: Additional Information Contact: Susan Alanis (8180) Robert Sturns (2663) Robert Sturns (2663) Logname: 17EDTARIZ99 Page 2 of 2