HomeMy WebLinkAboutIR 9327INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
No. 9327
November 16, 2010
Page 1 of 1
SUBJECT: AN INTERLOCAL AGREEMENT FOR THE SHARING OF MUNICIPAL
HOTEL OCCUPANCY TAXES GENERATED BY THE CITY OF EULESS ON
LAND LOCATED WITHIN THE GEOGRAPHICAL BOUNDARIES OF THE
DALLAS /FORT WORTH INTERNATIONAL AIRPORT
The purpose of this Informal Report is to inform City Council of a request from the Dallas/Fort Worth
International Airport Board and the City of Euless to enter into an interlocal agreement for the sharing of
municipal hotel occupancy taxes generated on land located within the geographical boundaries of the
Dallas /Fort Worth International Airport.
On February 12, 1998, the City of Fort Worth entered into an interlocal agreement with the City of Euless
and the Dallas/Fort Worth International Airport Board to provide for the sharing of incremental tax
revenues generated by future economic development projects within the geographical boundaries of the
Airport. For each year of the agreement, the City of Euless would share increased revenues from the
MAO portion of the ad valorem tax on real and personal property, sales and use tax, utility franchise tax,
municipal court revenues, mixed beverage taxes and other general revenue tax with one -third going to
Euless and two- thirds shared equally between the Cities of Dallas and Fort Worth.
The City of Euless would now like to encourage hotel development on property located within the
boundaries of DFW Airport and is willing to share a portion of its incremental municipal hotel occupancy
taxes with Dallas and Fort Worth in exchange for consideration of such development. Under the
agreement, the City of Euless will provide for two- thirds of the Municipal Hotel Occupancy Taxes received
by Euless to be shared with Dallas and Fort Worth in proportion to their respective ownership interest in
the Dallas /Fort Worth International Airport. In addition, Euless agrees that no tax abatement agreement or
incentive plan will be created regarding Hotel Occupancy Tax which would impact any revenues due
Dallas and /or Fort Worth unless all parties agree in writing in advance of such a plan.
The interlocal agreement will become effective when it has been approved by the City Councils of Dallas,
Fort Worth, Euless and by the Airport Board. On October 26, 2010, the City Council of Euless authorized
the City Manager to execute the interlocal agreement. The City of Dallas is expected to take action on the
agreement at its December 8h City Council meeting.
Staff will bring forward an M&C on the December Ph Council to authorize the execution of an Interlocal
Agreement for the sharing of municipal hotel occupancy taxes generated by hotel development in the City
of Euless on land orated with the boundaries of the Dallas/Fort Worth International Airport.
6)6
Dale A. Flsse r, .E.
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS