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HomeMy WebLinkAboutContract 50816 CITY SECRETARY CONTRACT 140. TAX INCREMENT FINANCING DEVELOPMENT AGREEMENT Project Name: East Exchange Avenue and Mule Alley Utilities (Stockyards TIF) This TAX INCREMENT FINANCING DEVELOPMENT AGREEMENT ("Agreement") is entered into by and between the BOARD OF DIRECTORS OF TAX INCREMENT REINVESTMENT ZONE NUMBER FIFTEEN,CITY OF FORT WORTH, TEXAS (the "Board"), an administrative body appointed in accordance with Chapter 311 of the Texas Tax Code (the "TIF Act") to oversee the administration of Tax Increment Reinvestment Zone Number Fifteen, City of Fort Worth,Texas,a reinvestment zone designated by ordinance of the City of Fort Worth ("City") in accordance with the TIF Act, and the CITY OF FORT WORTH ("City"), a home rule municipality organized under the laws of the State of Texas. The Board and City hereby agree that the following statements are true and correct and constitute the basis upon which the Board and City have entered into this Agreement: A. On December 2, 2014, the City Council adopted Ordinance No. 21550-12-2014, establishing Tax Increment Financing Reinvestment Zone Number Fifteen, City of Fort Worth, Texas (the "TIF District"), and establishing the tax increment fund of the TIF District (the "TIF Fund"). B. On July 22,2015,the Board adopted a project and financing plan for the TIF District (collectively the "TIF Project Plan"). The TIF Project Plan was approved by the City Council on August 4, 2015,pursuant to Ordinance No. 21812-08-2015. C. Fort Worth Heritage Development, LLC ("Developer") and the City have entered into an Enhanced Community Facilities Agreement on file in the City Secretary's Office as City Secretary Contract No. 50814(the"Sewer ECFA")for the upsizing and rerouting of a wastewater line generally located along Mule Alley and continuing southeast to Northeast 23rd Street (the "Sewer Improvements"). The City and Developer intend to enter into a second Enhanced Community Facilities Agreement(the "Streetscape ECFA") in connection with the construction of streetscape improvements along East Exchange Avenue from North Main Street to Packers Avenue (the "Streetscape Improvements") (the Sewer ECFA and Streetscape ECFA being referred to, collectively, as the "ECFAs"). The improvements covered by the ECFAs are described in Exhibit"A." Development Description, which is attached hereto and hereby made a part of this Agreement for all purposes. The Sewer Improvements and Streetscape Improvements are located entirely within the TIF District or otherwise directly benefit the TIF District. D. The City and Commerce Construction Co., L.P. ("Commerce") have entered into a Construction Manager-Agent Agreement on file in the City Secretary's Office as City Secretary Contract No. 50815 (the "CMA") for Commerce to provide the City with consultation, Agreement for Construction of Improvements to East Exchange Avenue and Mule Alley TIF Development Agreement between TIF District Fifteen Stockyards and City of Fort Worth Rev.06/2015 y' Pa e 1 of 8 ?SEC 1 aR 212 OFFICIAL RECORD M C�0 N CITY SECRETARY FT. WORTH,TX administrative and management services during the design and construction of the Sewer Improvements and the Streetscape Improvements. E. The City shall reimburse Developer for the costs of the Sewer Improvements and the Streetscape Improvements in accordance with the ECFAs and shall compensate Commerce pursuant to the CMA, in an amount up to $7,900,000 (the "City Participation Amount") solely because such work will help leverage development within the Historic Stockyards that the City considers beneficial for the overall economic development goals of the City. Specifically,the City has agreed to pay such expenses in order to incentivize the relocation by Rural Media Group, Inc., its successors, assigns, affiliates or subsidiaries (11RMG") of its corporate headquarters to an approximately 5,250 square foot lease space in the Stockyard Visitors' Center located at 130 E. Exchange Avenue and the relocation of RMG's primary broadcasting studio to the renovated historic Auction Barn located at 409 E. Exchange Avenue (collectively,the "RMG Sites"). F. The City has requested that the Board reimburse the City for the City's expenditures pursuant to the ECFAs and the CMA, as more specifically described in such agreements (the "Project Costs"). For purposes of this Agreement, the Project Costs shall include all funds expended for public improvements and other related expenditures described in the ECFAs and the CMA that are eligible for TIF reimbursement. G. The TIF Project Plan specifically authorizes the Board to enter into agreements dedicating revenue from the TIF Fund for public improvements within the TIF District. The Project Costs qualify as lawful"project costs,"as that term is defined in Section 311.002(1)of the TIF Act. Accordingly, the Board is willing to reimburse City for the Project Costs, up to a maximum of$7,900,000, in accordance with this Agreement. H. The City and Developer have entered into that certain Economic Development Program Agreement on file in the City Secretary's Office as City Secretary Contract No. 46495 (the "380 Agreement"), as previously amended by City Secretary Contract No. 46495-A1 and City Secretary Contract No. 46595-A2 (the "380 Amendment No. 2"). I. If RMG fails to open its corporate headquarters and its primary broadcasting studio on the RMG Sites and to remain in operation for a specified time period, and Developer fails to obtain a successor tenant, all in accordance with the ECFAs, the City shall be entitled to reimbursement from Developer for the City's cost participation in the ECFAs and payments to Commerce pursuant to the CMA. Such reimbursement by Developer shall be an amount equal to the City Participation Amount, less any amounts received by the City under this TIF Agreement and any payments to the City by other developers and landowners for certain charges, including sewer per acre charges and other payments required as a condition of connecting to the Sewer Improvements, if any, as more specifically provided in the ECFAs, not to exceed $5,000,000.00 (the "Reimbursement Payment"). Agreement for Construction of Improvements to East Exchange Avenue and Mule Alley TIF Development Agreement between TIF District Fifteen Stockyards and City of Fort Worth Rev.06/2015 Page 2 of 8 J. Upon receipt by the TIF of a copy of a Reimbursement Notice from the City to Developer making demand for the Reimbursement Payment in accordance with the ECFAs, this Agreement shall terminate and the TIF shall have no further obligations to make payments to the City pursuant to this Agreement. The City's sole source of funding to collect the Reimbursement Payment will be through deductions from Program Grants otherwise payable pursuant to the 380 Agreement, as amended. NOW, THEREFORE, the Board and City, for and in consideration of the terms and conditions set forth herein, do hereby contract, covenant and agree as follows: 1. REIMBURSEMENT BY BOARD. The Board shall reimburse the City for(a)costs incurred by the City pursuant to the CMA; (b) the amount reimbursed by the City to the Developer pursuant to the Streetscape ECFA; and (c)the amount reimbursed by the City to the Developer pursuant to the Sewer ECFA, reduced by all payments to the City by other developers and landowners of sewer per acre charges or other payments required as a condition of connecting to the Sewer Improvements pursuant to Section 35-81, et seq. of the Code of the City of Fort Worth or other generally applicable City ordinances, if any, (collectively, the "TIF Reimbursement Amount"), provided, however, the TIF Reimbursement Amount shall not exceed Seven Million Nine Hundred Thousand ($7,900,000). The TIF Reimbursement Amount shall include all public improvements and other related expenditures described in the ECFAs and the CMA that are eligible for TIF reimbursement,not to exceed $7,900,000. 2. TIF FUND CONTRIBUTIONS; PRIORITY OF PAYMENT The Board hereby acknowledges and consents to the transfer from the TIF Fund, in the amount of Seven Million Nine Hundred Thousand Dollars($7,900,000),from time to time as funds are available, to the funds or accounts of the City that will be used to reimburse the City for the TIF Reimbursement Amount. All payments by the TIF to the City shall be applied first to reimburse the City for payments pursuant to the CMA. The Board acknowledges that this Agreement is the first development agreement entered into by the TIF and that the Board has no existing contractual obligations. Payments to the City pursuant to this Agreement shall have priority over all other obligations of the TIF; provided, however, the City understands and agrees that any obligation of the Board to pay all or any portion of the TIF Reimbursement Amount shall be subject and subordinate to the Board's right to retain reserves in the TIF Fund to pay reasonable administrative costs of the TIF. Agreement for Construction of Improvements to East Exchange Avenue and Mule Alley TIF Development Agreement between TIF District Fifteen Stockyards and City of Fort Worth Rev.06/2015 Page 3 of 8 3. TERMINATION OF PAYMENTS BY TIF. Upon receipt by the TIF from the City of a copy of a Reimbursement Notice directed to Developer in accordance with the ECFAs, the TIF shall cease payments to the City pursuant to this Agreement. 4. TERM. This Agreement shall be effective as of November 2, 2016, ("Effective Date") and expire upon the earlier of (i) payment by the TIF to the City of the TIF Reimbursement Amount; (ii) receipt by the TIF of a copy of a Reimbursement Notice from the City to Developer in accordance with the ECFAs; or(iii)termination of the TIF District in accordance with Section 311.017 of the TIF Act. 5. NOTICES. All written notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid, or by hand delivery: Board: City: Board of Directors Stockyards/Northside TIF Attn: Susan Alanis, Attn: Michael Henning, TIF Administrator Assistant City Manager 1150 South Freeway 200 Texas Street Fort Worth, Texas 76104 Fort Worth, Texas 76102 with a copy to: Robert Sturns, Director Economic Development Department 1150 South Freeway Fort Worth, TX 76104 Agreement for Construction of Improvements to East Exchange Avenue and Mule Alley TIF Development Agreement between TIF District Fifteen Stockyards and City of Fort Worth Rev.06/2015 Page 4 of 8 Developer(for purposes of Section 15 only) Fort Worth Heritage Development, LLC Attn: Craig Cavileer 13191 Crossroads Parkway North 6th Floor City of Industry, CA 91746 with a copy to: Majestic Realty Co. Mike Durham, Chief Financial Officer mdurhwn@maj esticrealty.com 6. COMPLIANCE WITH LEGAL REQUIREMENTS. This Agreement is subject to all applicable federal, state and local laws, ordinances, rules and regulations, including, but not limited to, all provisions of the City's Charter and ordinances, as amended, and violation of the same shall constitute a default under this Agreement. In undertaking any work on the Project, City, its officers, agents, servants, employees, contractors and subcontractors shall comply with all federal, state and local laws and all ordinances,rules and regulations of the City, as such laws, ordinances, rules and regulations exist or may hereafter be amended or adopted(collectively, "Legal Requirements"). 7. NO WAIVER. The failure of either party to insist upon the performance of any term or provision of this Agreement or to exercise any right granted hereunder shall not constitute a waiver of that party's right to insist upon appropriate performance or to assert any such right on any future occasion. 8. GOVERNMENTAL POWERS. It is understood that by execution of this Agreement,neither the Board nor the City waives or surrenders any of its governmental powers or immunities. 9. FORCE MAJEURE. It is expressly understood and agreed by the parties to this Agreement that if the performance of any obligations hereunder is delayed by reason of war, civil commotion, acts of God, inclement weather, governmental restrictions, regulations, or interferences, unreasonable delays by the City in issuing any permits or certificates of occupancy or conducting any inspections Agreement for Construction of Improvements to East Exchange Avenue and Mule Alley TIF Development Agreement between TIF District Fifteen Stockyards and City of Fort Worth Rev.06/2015 Page 5 of 8 of or with respect to the Project(based on the amount of time that the City customarily requires in undertaking such activities and based on the then-current workload of the City department(s) responsible for undertaking such activities), or delays caused by unforeseen construction or site issues, fire or other casualty, court injunction, necessary condemnation proceedings, acts of the other party,its affiliates/related entities and/or their contractors,or any actions or inactions of third parties or other circumstances which are reasonably beyond the control of the party obligated or permitted under the terms of this Agreement to do or perform the same, regardless of whether any such circumstance is similar to any of those enumerated or not,the party so obligated or permitted shall be excused from doing or performing the same during such period of delay, so that the time period applicable to such design or construction requirement shall be extended for a period of time equal to the period such party was delayed. 10. BOARD REPRESENTATIVE. City understands and agrees that, in addition to the Administrator, the Board, in its sole discretion,may appoint certain City staff members,a City department or another entity to serve as its representative in carrying out any or all of the responsibilities of the Board hereunder, and that references to "the Board" in this Agreement mean the Board in its entirety or any such designated representative. 11. NO THIRD PARTY RIGHTS. This Agreement is solely for the benefit of the parties hereto and the City and is not intended to create or grant any rights, contractual or otherwise, to any other person or entity. 12. SEVERABILITY. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity,legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 13. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. 14. CAPTIONS. The captions to the various clauses of this Agreement are for informational purposes only and shall not alter the substance of the terms and conditions of this Agreement. Agreement for Construction of Improvements to East Exchange Avenue and Mule Alley TIF Development Agreement between TIF District Fifteen Stockyards and City of Fort Worth Rev.06/2015 Page 6 of 8 15. ENTIRETY OF AGREEMENT. This Agreement, including any exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the Board and City, their assigns and successors in interest, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. This Agreement shall not be amended without giving advance notice of at least sixty days to the Developer to allow Developer to provide comments on any such amendment which will be provided to the Board. All such amendments shall be approved by the Board in an open meeting held in accordance with Chapter 551 of the Texas Government Code and shall be executed in writing by both parties and City. IN WITNESS WHEREOF,the undersigned have caused this Agreement to be executed effective as of the Effective Date: BOARD OF DIRECTORS OF TAX CITY OF FORT WORTH,TEXAS INCREMENT REINVESTMENT ZONE NU BER FIFTEEN, ITY OF FORT W TH TE S By: By: Carlos Flores, Su an Alanis Chairman Assistant City Manager FORT::, AI'r v ED AS TO FORM AND LEGALITY: QF. Atte by: By:'U�& t r Melinda Ramos Ma J. Ka , ty gecm Senior Assistant City Attorney Resolution No. 2017-02 Date of Board Approval: November 2, 2016 M& C No. C-27995 Agreement for Construction of Improvements to East Exchange Avenue and Mule Alley TIF Development Agreement between TIF District Fifteen Stockyards and City of Fort Worth Rev.06/2015 Page 7 of S OFFICIAL RECORD CITY SECRETARY FT WORTH TX EXHIBIT "A" DEVELOPMENT DESCRIPTION The Development will consist of improvements to the streetscape of E.Exchange Avenue between N. Main St. and Packers Ave. as well as certain improvements necessary for the enlargement and relocation of wastewater utilities generally located along Mule Alley. All improvements that are to be made as part of the Development are those described in that certain Enhanced Community Facilities Agreement Sewer Improvements between the City of Fort Worth and Fort Worth Heritage Development, LLC (City Secretary Contract No. 50814 and that certain Enhanced Community Facilities Agreement Streetscape Improvements to be entered into between the City of Fort Worth and Fort Worth Heritage Development, LLC. Agreement for Construction of Improvements to East Exchange Avenue and Mule Alley TIF Development Agreement between TIF District Fifteen stockyards and City of Fort Worth Rev.0612015 Page 8 of 8 M&C Review Page 1 of 4 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FoRTTlI COUNCIL ACTION: Approved As Amended on 11/15/2016 -Ordinance No. 22505-11-2016 DATE: 11/15/2016 REFERENCE C-27995 LOG NAME: 17RMGEDPAEXCHANGECFA NO.. CODE: C TYPE: NON- PUBLIC NO CONSENT HEARING: SUBJECT: Authorize Execution of an Economic Development Program Agreement with Rural Media Group, LLC, for the Relocation of Its Corporate Headquarters and Broadcasting Operations to the Fort Worth Stockyards, Authorize Execution of a Community Facilities Agreement with Fort Worth Heritage Development, LLC, for Public Improvements to E. Exchange Avenue and Mule Alley, Authorize Amendment to Economic Development Program Agreement with Fort Worth Heritage Development, LLC, City Secretary Contract No. 46495, to Secure Performance Obligations Under the Economic Development Program Agreement and the Community Facilities Agreement, Authorize Execution of a Tax Increment Financing Development Agreement with the Board of Directors of Tax Increment Reinvestment Zone No. 15 for Reimbursement to the City for Costs of Those Public Improvements, Authorize Advance Funding by the City for Those Public Improvements from TIF Revenues Collected Through the Remaining Life of the Zone as the Receivable Estimated at $7,900,000.00 and Adopt Related Appropriation Ordinance (COUNCIL DISTRICT 2) RECOMMENDATION: It is recommended that the City Council: 1. Authorize the City Manager to execute an Economic Development Program Agreement with Rural Media Group, LLC, for the relocation of its corporate headquarters and broadcasting operations to the Fort Worth Stockyards; 2. Find that the terms and conditions of the proposed Economic Development Program Agreement, as outlined below, constitute a custom-designed Economic Development Program, as recommended by the 2016 Comprehensive Plan and authorized by Chapter 380 of the Texas Local Government Code; 3. Authorize the City Manager to execute a Community Facilities Agreement with Fort Worth Heritage Development, LLC, for construction of public improvements to E. Exchange Avenue and Mule Alley; 4. Authorize the execution of amendment to Economic Development Program Agreement with Fort Worth Heritage Development, LLC, City Secretary Contract No. 46495, in order to secure performance obligations under the above-referenced Economic Development Program Agreement with Rural Media Group, LLC, and the Community Facilities Agreement; 5. Authorize the execution of a Tax Increment Financing Development Agreement with the Board of Directors of Tax Increment Reinvestment Zone No. 15 (Stockyards/Northside TIF) for funding of the public improvements under the Community Facilities Agreement; 6. Authorize the advance funding by the City for costs of the public improvements under the Community Facilities Agreement, with TIF funding collected through the remaining life of the Zone as a receivable, estimated at $7,900,000.00; and 7. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Developer Contribution Fund in the amount of$7,900,000.00. http://apps.cfwnet.org/council_packet/mc_review.asp?ID=24046&councildate=11/15/2016 7/15/2019 M&C Review Page 2 of 4 DISCUSSION: On November 8, 2016, the City Council received a briefing on Staffs recommendation to enter into an Economic Development Program Agreement (EDPA) with Rural Media Group (RMG) to secure the relocation of its corporate headquarters and primary broadcasting studio to a location in the Stockyards. In connection with this, Staff also proposes entering into a Community Facilities Agreement (CFA) with Fort Worth Heritage Development, LLC (Heritage) in order to construct public improvements to streetscaping along E. Exchange Avenue and waste water utilities extending through and beyond Mule Alley on an accelerated schedule. Accelerating investment in these public improvements will help to minimize future disruption to activity and development in the Stockyards, and will help to offset near-term costs to RMG in its relocation to Fort Worth. The City will be reimbursed for the costs of the public improvements for which it is responsible under the CFA from future tax increment revenues received from properties in Tax Increment Reinvestment Zone No. 15 (Stockyards/Northside TIF), as provided in a Tax Increment Financing (TIF) Development Agreement between the City and the TIF's board of directors. In order to secure performance under the EDPA and the CFA, the City and Heritage will execute an amendment to the City's existing Economic Development Program Agreement with Heritage (City Secretary Contract No. 46495). In the event that RMG does not fulfill its primary obligations under the EDPA by relocating its corporate headquarters and primary broadcasting studio to the Stockyards for at least a 10-year period, the City will have the right to be reimbursed for certain public infrastructure costs under the CFA by deducting those sums from Program Grants payable to Heritage under the EDPA. Economic Development Program Agreement (EDPA) with Rural Media Group, LLC (RMG): RMG is a leading provider of multimedia content dedicated to the rural and western lifestyle. RMG is the parent company of RFD-TV, RURAL RADIO, FamilyNet, RFD-TV The Magazine, and RFD-TV The Theatre. RMG produces, distributes, and broadcasts original content as well as licensed content to markets throughout the United States and internationally. Staff recommends entering into an EDPA with RMG under which RMG will relocate its corporate headquarters to the Stockyards by no later than January 1, 2020. The proposed location of RMG's corporate headquarters facility will be on property owned by Heritage and leased to RMG. RMG will occupy at least 30,000 square feet of office space, of which a minimum 6,000 square feet must be used as the primary broadcasting studio for RFD-TV. Specifically, RMG must comply with the following minimum requirements: - Invest a minimum $5 million in new taxable business personal property in the site as of January 1, 2020; - Employ a minimum 90 full-time employees (FTEs) on the site by not later than January 1, 2021 and a minimum 135 FTEs not later than January 1, 2023, of which at all times at least 15 percent must be Fort Worth residents and 15 percent must be Fort Worth Central City residents; - Pay wages of no less than $15.00 per hour to all FTEs; - Spend a minimum 15 percent annual discretionary service and supply expenditures for Fort Worth-based operations with contractors that are Fort Worth contractors; - Spend a minimum 15 percent annual discretionary service and supply expenditures with contractors that are Fort Worth Certified M/WBE companies; - Maintain minimum average national half hour viewership of 100,000 viewers on the weekend and 12,000 viewers on weekdays, with jointly agreed upon methods for viewership verification; - Produce and broadcast a minimum 100 hours annually of live or original television content, unrepeated, filmed in the City of Fort Worth, of which a minimum of 25 percent and a maximum of 90 percent will be http://apps.cfwnet.org/council_packet/mc_review.asp?ID=24046&councildate=11/15/2016 7/15/2019 M&C Review Page 3 of 4 filmed in the Fort Worth Stockyards (substantiation and verification of this commitment will incorporated in the Company's annual reporting requirements to the City, with penalty for not meeting this and other broadcast-related minimums resulting in a reduction in the potential grant received). Under the EDPA, RMG will be eligible to receive annual Economic Development Program grants equal to a maximum of 50 percent of the City's incremental property tax revenue attributable to the business personal property taxes paid by RMG in the previous tax year. Failure by RMG to locate its corporate headquarters and primary broadcasting studio in the Stockyards by January 1, 2020, as described above, will constitute a breach and will allow the City to terminate the EDPA. Failure by RMG to meet the broadcasting and promotional commitments in any year will result in a reduction of the maximum potential grant from 50 percent to 45 percent. Except for cases of default, the failure of RMG to meet any other particular commitment will result in a reduction to the grant amount that RMG is entitled to receive in a given year based on the value assigned to the commitment in accordance with the following table: Property Owner or Company Commitment Potential Grant Real and Personal Property Investment(Base Commitment) 15 Percent Minimum$15.00 Hourly Wage for Employees(Wage Commitment) 10 Percent Overall Employment Commitment 5 Percent 15 Percent Employment of Fort Worth Residents 5 Percent 15 Percent Employment of Fort Worth Central City Residents 5 Percent 15 Percent Utilization of Fort Worth Companies for Services and Supplies 5 Percent 15 Percent Utilization of Fort Worth M/WBE Companies for Services and 5 Percent Supplies TOTAL 50 Percent Community Facilities Agreement (CFA)with Fort Worth Heritage Development, LLC (Heritage): Heritage will execute a CFA for construction of streetscape improvements along East Exchange Avenue beginning at North Main Street and continuing to approximately Packers Avenue as well as the upsizing and rerouting of a wastewater line generally located along Mule Alley and continuing southeast to Northeast 23rd Street. The cost of these public improvements are expected to total approximately$7,900,000.00. The City will be responsible for paying the costs of these improvements. Heritage will also have the right to construct additional public improvements that Heritage wishes to pay for. The entire project under the CFA will be bid in accordance with competitive bidding statutes applicable to the City. Advance Funding of Public Improvements and TIF Development Agreement: As previously referenced, in order to accelerate construction of the public improvements along East Exchange Avenue and Mule Alley, Staff recommends that the City provide advance funding for these improvements. However, the Board of Directors of Tax Increment Reinvestment Zone No. 15 (Stockyards/Northside TIF) has approved execution of a Tax Increment Financing Development Agreement with the City for the reimbursement of those costs, which will be booked as a receivable by the City. Amendment to Economic Development Program Agreement with Fort Worth Heritage Development, LLC (Heritage): RMG will be receiving a $5,000,000.00 rent credit from Heritage under its lease. This rent credit comprises part of the overall Economic Development incentive that the City has concluded is necessary for RMG to relocate its corporate headquarters and broadcasting studio to the Stockyards. Rather than providing either Heritage or RMG a direct$5,000,000.00 Economic Development grant to cover the rent credit, the City has elected to cover this portion of its Economic Development incentive for the RMG project by advance funding the East Exchange Avenue and Mule Alley public infrastructure under the CFA. In the event that RMG ceases using the Stockyards site as its consolidated corporate headquarters and primary broadcasting site at any time during the 10-year EDPA term, Heritage will be required to reimburse or pay the City the difference between $5,000,000.00 of CFA infrastructure costs and any sums received by the City at that time from the TIF under the TIF Development Agreement. http://apps.cfwnet.org/council_packet/mc_review.asp?ID=24046&councildate=11/15/2016 7/15/2019 M&C Review Page 4 of 4 In order to secure Heritage's obligations, and thus preserve the public purposes behind the funding of the infrastructure covered by the CFA, the existing Economic Development Program Agreement between the City and Heritage (City Secretary Contract No. 46495) will be amended to allow the City to deduct any sums that Heritage may be obligated to reimburse to the City under the CFA from the annual Program Grants that the City would otherwise make to Heritage under its Economic Development Program Agreement. This project is located in COUNCIL DISTRICT 2, Mapsco 62G. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations, funds will be available in the current capital budget, as appropriated, of the Developer Contributions Fund. Repayment of the cash advance will begin when the improvements are completed, which is expected to be late Fiscal Year 2017 or early Fiscal Year 2018. The TIF will make annual payments to the City equal to 100 percent of the TIF revenues, less administration expenses. Repayment to the City for the cash advance will be the first priority for all revenues generated by the TIF and the City shall be first in line to receive reimbursement before the TIF utilizes any revenues outside of this Agreement. The TIF will not be charged interest on the cash being forwarded by the City and repayment in full is anticipated to occur in Fiscal Year 2027 based upon the current forecast. TO Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year Chartfield 2 FROM Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year (Chartfield 2) Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: Robert Sturns (212-2663) Additional Information Contact: Michael Hennig (871-6024) ATTACHMENTS AppropriationOrd.docx Form 1295.Pdf Ft Worth Form 1295.pdf http://apps.cfwnet.org/council_packet/mc_review.asp?ID=24046&councildate=11/15/2016 7/15/2019