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HomeMy WebLinkAboutOrdinance 23705-06-2019 ORDINANCE NO. 23705-06-2019 AN ORDINANCE AMENDING ORDINANCE 21011-10-2013 TO CLARIFY THE CENTERPOINTS AND BOUNDARIES OF "PROJECT FINANCING ZONE NUMBER ONE, CITY OF FORT WORTH, TEXAS" AND DIRECTING NOTICE TO THE TEXAS COMPTROLLER OF PUBLIC ACCOUNTS WHEREAS, Section 351.1015 of the Texas Tax Code authorizes a municipality with a population of at least 650,000 but less than 750,000 persons, according to the most recent federal decennial census, to designate a project financing zone in which incremental hotel-associated revenues from certain state taxes is to be set aside by the Texas Comptroller of Public Accounts (the "Comptroller") and paid to the designating municipality for use to acquire, lease, construct, improve, enlarge, and equip "qualified projects" and/or as security for and payment of bonds or other obligations issued or incurred for such purposes; and WHEREAS, according to the 2010 Census, the City of Fort Worth (the "City") had a population of 741,206 persons; and WHEREAS, on October 22, 2013, the City Council adopted an ordinance to identify the Fort Worth Convention Center and a planned multipurpose arena as "qualified projects" and to designate and establish "Project Financing Zone Number One, City of Fort Worth, Texas" (the "Zone") in accordance with the terms and conditions of Section 351.1015 of the Texas Tax Code (M&C G-19048; Ordinance 21011-10-2013); and WHEREAS, as required by Section 351.1015(a)(4) of the Texas Tax Code, the ordinance designating the Zone specified the longitude and latitude for the centers of the Ordinance Amending Ordinance 2101 1-10-2013 Page 1 of 5 two qualified projects, set boundaries for the Zone, and established an expiration date for the Zone; and WHEREAS, in accordance with the terms of Section 3 of Ordinance 21011-10- 2013, the City Manager's Office notified the Comptroller of the designation of the Zone and requested that the Comptroller (i) deposit incremental hotel-associated revenue collected by the Comptroller into a suspense account (the "Suspense Account") pursuant to the terms and conditions of Section 351.1015 of the Texas Tax Code and (ii) notify the City in writing of the date of the first deposit into the Suspense Account; and WHEREAS, on December 21, 2015, the City notified the Comptroller of the commencement of a qualified project and requested that the Comptroller begin making payments to the City from the Suspense Account in accordance with Section 351.1015(g) of the Texas Tax Code; and WHEREAS, City staff recently became aware that (i), although accurate coordinates were used to identify the longitude and latitude of the centers of the qualified projects, the labelling of the two projects was transposed and (ii) the boundaries identified in Ordinance 21011-10-2013 appear to have been plotted using street addresses instead of the coordinates, resulting in the identified boundaries for the Zone being slightly askew; and WHEREAS, realigning and correcting the Zone's boundaries using the identified coordinates will not result in any hotels being added to the Zone, because no hotels exist in the area that would be encompassed in the corrected boundaries but that was excluded from the originally defined boundaries, and will not result in any hotels being removed Ordinance Amending Ordinance 21011-10-2013 Page 2 of 5 from the Zone, because all of the hotels located within the originally defined boundaries are also substantially located within the corrected boundaries; and WHEREAS, staff recommends correcting these items to provide for a more accurate public record and to facilitate administration of the Zone throughout the remainder of its thirty-year duration. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: Section 1. That Exhibit "A" of Ordinance 21011-10-2013 is hereby repealed and deleted in its entirety and replaced with a new "Exhibit A," which is attached hereto and hereby made a part of this Ordinance and of Ordinance 21011-10-2013 for all purposes and which accurately depicts the designated boundaries of"Project Financing Zone Number One, City of Fort Worth, Texas" based on the center coordinates of the "Qualified Projects" contained in Ordinance 21011-10-2013. The City Council finds that the boundaries of the Zone reflected in the attached Exhibit A encompass an area that is within a three-mile radius of the center of each Qualified Project and that the revision of the boundary lines does not result in the addition or deletion of any hotel to or from the Zone. Ordinance Amending Ordinance 21011-10-2013 Page 3 of 5 Section 2. That Section 2.3 of Ordinance 21011-10-2013 is hereby repealed and deleted in its entirety and replaced with the following, which retains the originally identified coordinates but accurately labels each of the "Qualified Projects": 2.3. The latitude and longitude of each Qualified Project are as follows: (1) Fort Worth Convention Center, 1201 Houston Street: Latitude: 32.7497'N; Longitude -97.3279' W (2) Multipurpose arena and/or venue anticipated by the 2002 Will Rogers District Conceptual Plan, southeast corner of the Harley Avenue and Montgomery Street intersection: Latitude: 32.7410'N; Longitude -97.3684' W Section 3. That the City Council hereby directs the City Manager to notify the Texas Comptroller of Public Accounts (the "Comptroller") of the corrections made by this Ordinance to Ordinance 21011-10-2013 and to "Project Financing Zone Number One, City of Fort Worth, Texas" as designated thereby. Section 4. That this Ordinance shall be cumulative of all provisions of ordinances of the Code of the City of Fort Worth, Texas (2015), as amended, except where the provisions of this Ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event the conflicting provisions of such ordinances and such Code are hereby repealed. Ordinance Amending Ordinance 21011-10-2013 Page 4 of 5 Section 5. 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 6. 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: June 25, 2019 APPROVED AS TO FORM AND LEGALITY: B � '�� y•a Denis C. McElroy Assistant City Attorney Date: —1 P-9 C:G-19569 .r Ordinance Amending Ordinance 21011-10-2013 Page 5 of 5 :t —UA -' T174I _ Y1 fill ,, ,�•,-` �+ ;,,� �c �t ..A4�. INKr �. t 6•nie.aw .r, S. 9,...t'. `s. I Me{ �K�O- i9':. t i�yp ,, kky ,!! i� �- ��lc*"�....� t + ! \� � ' t.,? ,,R •�,4 M �JEl f LE FF e e.; F s t � p'�,.�����+"�•� ��;�"� A'I.���.y'�f � a. _�3, � i r l -,�'�>k.t C�� ` .b+'i°�^: � �' rat � � � +�i 4 , ,-:'�- � ..ii��: y 1.�, �� �� :�1+>3,.,.+�-�• ..� �yr. o 4 Gr s. _ �tq 4 III A Y It. V*Ow IFT llu fw• ,t+, ,, t p e ai: d I �, f L e C C• '. •t t.It ` ► + " �c ,.' a s r j r •;� t� �o � c. All wo 1 yr �ie'' 'J " ,a.• _ 't � � r �' fix^ � ,� � `V 1'\.a� � � i r • �� ei i�"� ,e, �,„'ti i� � r�'e. . .. � � it .�p..n,..��.�•,`r.-.. �'+t„�.. ti.� a i�. �' .ice '4.+,.+•:� I � p�. 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'6;r O H i`ij!,It��$,ail�;�� ` '* � r � *e� V�''t 1t J.}�•Y7rV r� � , Nm -" ..t � '- ,sit 1�"`i�'tF _ ^{� `.,� r� -lfsty��y A`� r i'{• �f°y � City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 6/25/2019 - Ordinance No. 23705-06-2019 DATE: Tuesday, June 25, 2019 REFERENCE NO.: **G-19569 LOG NAME: 25PFZ CORRECTION ORDINANCE SUBJECT: Adopt Ordinance to Amend 21011-10-2013 to Clarify the Centerpoints and Boundaries of Project Financing Zone Number One, City of Fort Worth, Texas (COUNCIL DISTRICTS 7 and 9) RECOMMENDATION: It is recommended that the City Council adopt the attached ordinance, which amends Ordinance 21011- 10-2013 to clarify the centerpoints and boundaries of Project Financing Zone Number One, City of Fort Worth, Texas. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to adopt an ordinance to make minor corrections to the ordinance that created the Project Financing Zone (PFZ) in October 2013 (M&C G- 18048; Ordinance 21011-10-2013). Section 351.1015 of the Texas Tax Code allows a city that meets certain requirements to designate a project financing zone around a "Qualified Project"that complies with specified criteria. Once such a zone is designated and the Texas Comptroller of Public Accounts (Comptroller) is notified, the Comptroller begins to set aside incremental growth in hotel-associated revenue (primarily state tax revenue) from all hotels within the zone for use on a qualified project by the designating city. A zone expires no later than the 30th anniversary of the date of designation. When the Comptroller is notified that a qualfied project has been commenced, that incremental hotel- associated revenue is paid out to the designating city for use to acquire, lease, construct, improve, enlarge, and equip qualified projects and/or as security for and payment of bonds or other obligations issued or incurred for those purposes. Fort Worth meets the requirements of Section 351.1015, and both the Fort Worth Convention Center and the multipurpose Dickies Arena that is being built adjacent to the Will Rogers Memorial Center meet the definition of qualified project. In October of 2013, the Fort Worth City Council adopted an ordinance designating the PFZ around those two qualified projects, with that ordinance containing longitude and latitude coordinates for the centers of the projects and setting boundary lines. In checking recently to determine whether a planned hotel would fall within the PFZ, staff discovered that the boundary lines shown in the ordinance were not centered around the coordinates but instead appeared to use the qualified projects' street addresses as centerpoints. As a result, the boundary lines shown in the attachment to the ordinance were slightly askew-generally slightly to the north and west of where they should have been. The attached "Comparison" pdf shows the differences in the two sets of boundaries. While the boundary issue was being reviewed, it was also discovered that, although the coordinates for the qualified project contained in the ordinance are correct, the labels for the two sites were reversed. Logname: 25PFZ CORRECTION ORDINANCE Page I of 2 The PFZ will not expire until the 30th anniversary of its designation. Given the zone's long duration it is especially important to have a complete and accurate public record about it. Therefore, staff is recommending that the City Council adopt the attached ordinance, which corrects the mislabelling and replaces the prior exhibit with one that shows the correct boundaries of the PFZ. Adoption of this correction ordinance will not have any immediate impact because no hotels currently exist in the areas that are being added to the east and the south and all of the hotels located within the prior boundary lines are also substantially located within the corrected boundaries. 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 Finance certifies that adoption of the attached ordinance will have no material effect on City funds. 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: ALL ACMs (6222) Originating Department Head: Sarah Fullenwider (7623) Additional Information Contact: Sarah Fullenwider (7623) Logname: 25PFZ CORRECTION ORDINANCE Page 2 of 2