HomeMy WebLinkAboutOrdinance 23700-06-2019 Ordinance No.23700-06-2019
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
ECONOMIC INCENTIVES FUND, IN THE AMOUNT OF $400,000.00, FROM AVAILABLE
FUNDS, FOR CERTAIN ECONOMIC DEVELOPMENT ACTIVITIES; PROVIDING FOR A
SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR
ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND
PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2018-2019 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
Economic Incentives Fund in the amount of $400,000.00, from available funds, for certain economic
development activities.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void
for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair
the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall
be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance 23392-09-2018 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of
said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY: CITY SECRETAR
A � A
sistant City Attorney ry J. e
SORT
ADOPTED AND EFFECTIVE: June 25, 2019 ��:.• "' "" •.,Q'�
U �
TE)(
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/25/2019 - Ordinance Nos. 23700-06-2019 & 23701-06-
2019
DATE: Tuesday, June 25, 2019 REFERENCE NO.: **G-19565
LOG NAME: 17250WLANCASTERFUNDTRANSFER
SUBJECT:
Accept Donation from the Lancaster Corridor Redevelopment, LLC of Additional Net Proceeds from Sale of
250 West Lancaster, Fort Worth, Texas to Further Fund the Economic Development Incentive Fund for
Certain Economic Development Activities and Adopt Appropriation Ordinances (ALL COUNCIL
DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1)Accept a donation in the amount of$400,000.00 of additional net proceeds from the sale of 250 West
Lancaster, Fort Worth, Texas for Certain Economic Development Activities from the Lancaster Corridor
Redevelopment, LLC for deposit into the Economic Development Fund;
2)Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the
amount of$4,575,896.00 in the Economic Incentives Fund from previously accepted donations and
repayment (MSC G-19419); and
3)Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the
amount of$400,000.00 in the Economic Incentives Fund from additional net proceeds.
DISCUSSION:
The Fort Worth Local Development Corporation (LDC) was an active party to the development of the
mixed use development located at 250 West Lancaster Avenue, Fort Worth, Texas (250 Lancaster)with
the purpose of promoting revitalization of the area and benefiting the citizens of Fort Worth by creating
affordable housing, retail,jobs and commercial opportunities in an area in need of revitalization.
On January 23, 2018, the Board of Trustees of the LDC approved a resolution to authorize the sale of 250
Lancaster by its owner, Lancaster Corridor Redevelopment, LLC, (LLC) of which LDC is the sole member,
to Beachwold Partners, LP, and on August 9, 2018, the sale of 250 Lancaster to Beachwold Partners,
LP's sole asset entity, BW Lancaster LLC, was closed and the property conveyed.
On August 21, 2018, the LDC adopted a resolution authorizing the transfer of the net proceeds from the
sale, less the amount for payment of capital gains tax, from the Lancaster Corridor Redevelopment, LLC
to the City of Fort Worth to fund (i) a new Economic Development Specialist position focused on research,
request for proposals and incentive analysis, and urban redevelopment; (ii) marketing and research
resources for efforts such as, but not limited to, message development, target industry recruitment, trade
Logname: 17250WLANCASTERFLINDTRANSFER Page 1 of 2
shows, and international opportunities; and (iii) incentives to compete with other communities to attract
new business and economic development to the City or to retain existing business via a new Economic
Development Incentive Fund ((i)-(iii) collectively, "Certain Economic Development Activities").
The financial breakdown for each activity is as follows:
Economic Development Specialist - $425,000.00 (5 Years)
Marketing and Research Initiatives - $500,000.00 (5 Years)
Economic Development Incentive Fund $2,975,896.00
The LDC chose to transfer the funds to the City of Fort Worth so that the City Council will have oversight
of the Economic Development Incentive Fund, including consideration of any potential grants or loans.
The additional funds provide operational support for the Economic Development Department as it
implements the Economic Development Strategic Plan; however, costs associated with these additional
activities may be available from the LDC on an on-going basis and included in the City's annual budget
process as a reimbursement.
On November 13, 2018 (M&C G-19419), the Fort Worth City Council accepted a total of$4,575,896.00
from the LLC, with $2,000,000 as a repayment for the Lancaster Avenue project from the LLC on behalf of
the LDC and $2,575,896.00 as an initial donation, which donation reflected a reduction of$400,000.00 in
the original estimate due to revised capital gains tax estimates. The capital gains tax has since been paid
and it was $563,378.00 less than the prior estimate. The additional $400,000.00 transfer completes the
original planned funding of the Economic Development Incentive Fund, which was approved by City
Council on January 29, 2019 (Resolution No. 5039-01-2019).
A Form 1295 is not required for this contract because: This M&C does not request approval of a contract
with a business entity.
------------
FISCAL INFORMATION / CERTIFICATION:
The Director of Financial certifies that upon approval of the above recommendations, the $400,000.00 will
be deposited into the Economic Development Fund. As projects and needs are identified in alignment with
the policy, appropriations will be brought forward to the Mayor and Council for approval.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Robert Sturns (2663)
Additional Information Contact: Brenda Hicks-Sorensen (2606)
Logname: 17250WLANCASTERFUNDTRANSFER Page 2 of 2