HomeMy WebLinkAboutResolution 5090-05-2019NO. 5090-05-2019
ESTABLISHING ALLOCATION PRIORITIES FOR AVAILABLE
REVENUE GENERATED FROM
PROJECT FINANCING ZONE NUMBER ONE
WHEREAS, on October 225 20135 the Fort Worth City Council adopted Ordinance No. 2101 1-10-2013,
designating Project Financing Zone Number One, City of Fort Worth, Texas (the "Zone"), and requesting the Texas
Comptroller of Public Accounts (the "Comptroller") to deposit incremental hotel -associated revenue from the Zone
(the "State PFZ Funds") into a suspense account for use by the City to acquire, lease, construct, improve, enlarge,
and equip "qualified projects,". all as more specifically authorized and set forth in Section 351.1015, Texas Tax
Code; and
WHEREAS, under Section 351.1015, Texas Tax Code, the term "qualified project" includes both a
convention center facility and a multipurpose arena or venue that meets certain criteria, and the term "convention
center facility" encompasses (1) the Fort Worth Convention Center, (2) the Will Rogers Memorial Center, and (3) a
hotel that is located within 1,000 feet of either facility and that is either owned by or located on land that is owned by
the City or by a nonprofit corporation acting on behalf of the City as an eligible central municipality; and
WHEREAS, on July 15, 2014, the City Council adopted Resohrtion No. 4327-07-2014, authorizing a
multipurpose arena at the intersection of Harley Avenue and Gendy Street and adjacent support facilities, and any
related infrastructure, as a venue project (the "Venue Project") and designating an admissions tax, a parking tax, and
as a stall tax (collectively, the "venue taxes") as methods of financing for the Venue Project in accordance with
Chapter 334, Texas Local Government Code, as amended (the "Act"); and
WHEREAS, on August 12, 2014, the City Council adopted Ordinance No. 21374-08-2014, calling for and
ordering a special election at which the qualified voters of the City would have the opportunity to vote on
authorizing the Venue Project as a venue project under the Act and designating methods of financing for the Venue
Project in accordance with the Act, specifically seeking authorization to levy and collect the venue taxes; and
WHEREAS, on November 4, 2014, a special election was held, and the qualified voters of the City
authorized the Venue Project and approved the designated methods of financing for the Venue Project in accordance
with the Act; and
WHEREAS, the Venue Project is also considered a "qualified project" under Section 351.1015, Texas Tax
Code; and
WHEREAS, the City Council subsequently took action to express commitment for financially participating
in the Venue Project in an amount equal to fifty percent of the costs but not to exceed $225,000,000.00, to adopt a
funding plan, and to authorize agreements with non-profit private sector entities for the development, funding,
construction, lease, operation, and maintenance of the Venue Project (Resolutions 4387-12-2004 and 449&08-2015,
M&C C-27527 and C-28021); and
WHEREAS, on June 6, 2017, the City Council adopted ordinances to enact the voter -approved venue taxes
(Ordinances 22742-06-2017, 22743-06-2017, and 22744-06-2017); and
WHEREAS, on June 6, 2017, the City Council also authorized the issuance and sale of bonds (the "Arena
Bonds") to provide the balance of the City's $225,000,000.00 commitment to the initial development of the Venue
Project, with such bonds secured by and payable from the proceeds of the City's municipal hotel occupancy tax, the
venue taxes, the State PFZ Funds, and revenues received from development on property located within the Dallas -
Fort Worth International Airport (Ordinances 22747-06-2017 and 2274&06-2017, referred to herein collectively as
the "Bond Ordinances"); and
Page 1 of 2
�, i
114
WHEREAS, Section 11 of the Bond Ordinances permits the City to use State PFZ Funds from the Zone for
other lawful purposes to the extent such revenues are not needed to service the debt on the Arena Bonds; and
WHEREAS, financial modelling indicates that sufficient capacity will exist in the State PFZ Funds
generated in the Zone to contribute toward other qualified projects, including the Fort Worth Convention Center and
an eligible hotel that qualifies as a convention center facility under the Tax Code; and
WHEREAS, it is the City's intent to fund economic development program grants and other incentives for
hotel -development projects that are begun in or after Fiscal Year 2019 solely out of legally available revenues
associated with the Culture and Tourism Fund and without subsidy from the General Fund, regardless of any prior
indications to the contrary (see, for example, M&C C-29076); and
WHEREAS, available State PFZ Funds are an eligible source of fiords for ahotel-development project
where the hotel meets the definitions of convention center facility and qualified project; and
WHEREAS, the City Council wishes to officially express its priorities with respect to use of State PFZ
funds, as they become available, in order to facilitate the long-term planning necessary to execute improvements in
and around the Fort Worth Convention Center.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF TH1J CITY OF FORT
WORTH THAT:
SECTION 1. The statements and declarations contained in the preamble of this Resolution are hereby
Found to be true and correct and shall be made a part hereof
SECTION 2. Consistent with the laws of the State of Texas, the City Council is committed to the following
priorities for the use of State PFZ Funds, as and to the extent such State PFZ Funds are available, and other available
capital fiends in the order noted:
a. Redevelopment and expansion of the Fort Worth Convention Center;
b. An eligible Convention Center Hotel adjacent thereto;
c. Other new hotels adjacent to the Will Rogers Memorial Center or otherwise serving the qualified
projects that do not impede the development of the Convention Center Hotel and provide a net positive
financial benefit to the Project Financing Zone Number One; with the understanding that funding for any
hotel that does not meet the criteria of a convention center facility under the Tax Code shall not receive
firnding from State PFZ Funds; and
d. Maintenance and Renovation of Existing Facilities at the Will Rogers Memorial Center campus.
SECTION 3. To the extent any conflict arises between the terms of this Resolution and the terms of the
Bond Ordinances, the Bond Ordinances shall control.
SECTION 4. It is hereby officially found and determined that the meeting of the Fort Worth City Council
at which this Resolution was adopted was open to the public, and that public notice of the time, place and purpose of
said meeting was given, as required by Chapter 551 of the Texas Government Code.
Adopted this 14"' day of May 2019,
J. Kayser, City
Page 2 of 2