HomeMy WebLinkAboutIR 9407To the Mayor and Members of the City Council
No. 9407
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July 19,2011
SUBJECT: Dissolution of Tax Increment Reinvestment Zone Number Eleven
(Southwest Parkway)
Tax Increment Reinvestment Zone Number Eleven (Southwest Parkway T|F)was established by City
Council OO December 7, 2004 to help fund 8rt8hG| cOOneCdOOS, right-of-way acquisition, and other public
improvements associated with the construction of Southwest Parkway (SH-121). The Southwest Parkway
T|FiS set to expire OO December 31,2025.
Because the overall Southwest Parkway construction project was de|Rved as funding agreements and
negotiations with UP RGi|[O8d took several y83[S to COrnpketG. the Southwest PRrkvvavT|F increment did
not materialize 3S originally projected. The delay iO construction C8WSHd 3 corresponding delay in new
development along the corridor. The Southwest Parkway TIF does not have any commitments as the final
Project and Financing Plan was never approved by City Council. NOT|F funds have been utilized.
In order to nx}v8 the project h3nW3rd, the City COUOoi| approved including GU i acquisition CoSiS
associated with the project iOthGCitvSrSgu|8rd8ttfUDdiDgSoh8dV|8. Consequently, the T|F increment is
no longer necessary to provide the funding needed to pay the City's debt service associated with the
project. In April 2011` the Texas Transportation COnO[O}SsiOO approved G federal transportation
infrastructure loan agreement for over $400 million to help fund Texas 181 iD Irving and Grand Prairie and
the Southwest Parkway/Chisholm Trail project iOF0rtVVorthGndJOhDSODCUunty. The agreement will use
the state's gas tax revenues GG collateral for UptQ2O years on the two projects. |ndi8| improvements have
already begun 00 the project.
Since improvements have already begun without the use of TIF funding and the future use of TIF funds is
not anticipated at this time and since the large majority of any increment to be collected in the TIF will be
City of Fort Worth tax revenue, City staff recommends City Council terminate the Southwest Parkway TIF
in order to allow future tax increment to flow into the general fund accounts of the participating taxing
Section 311.017(a) of the Texas Tax Code states, "4reinvestment zone terminates OOthe earlier of: (1)
the termination date designated in the ordinance or order, as applicable, creating the zone or an earlier or
later termination d8i8 designated by ordinance or order adopted subsequent to the ordinance Ororder
Cngedng the zone; or (2) the date OD which all project CostS, tax inCF8DleDt bonds and interest on those
bonds, and other obligations have been paid infV||."
Approximately $338.358 will be distributed between the (}ib/ Of Fort VVOrth, Tarrant Regional Water
District, and Tarrant County within 30 days of dissolution.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
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July 19, 2011
Page 2 of 2
SUBJECT: Dissolution of Tax Increment Reinvestment Zone Number Eleven
(Southwest Parkway)
Next Steps:
City staff will make a formal recommendation to dissolve the Southwest Parkway TIF to City Council on
Tuesday, July 26, 2011 at the regularly scheduled City Council meeting.
If you have any questions, please contact Jay Chapa, Director of Housing and Economic Development, at
817.392.5804.
Tom Higgins
Interim City Manager
ISSUED BY THE CITY MANAGER