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HomeMy WebLinkAboutOrdinance 1995 ORDINANCE NO. AN ORDMANC1 AUTHORIZING THE ACCEPTANCE OF CERTAIN PAYMENTS IN LIEU OF TAXES FROM THE HOUSING AUTHORITY OF THE CITY OF FORT WORTH; APPR0VING A FORM OF CONTRACT WITR THE SAID HOUSING AUTHORITY WITH RESPECT THERETO; AND AUTHORIZING THE EXECUTION OF SAID CONTRACT. WHEREAS, the Housing Authority of the City of Fort Worth (herein called the "Authority") proposes to develop and administer a low rent hour= ing project (herein called the "Project") within the territorial limits of the City of Fort Worth, Texas (herein called the "City*), and said project will include approximately 500 dwelling units, will cost approximately Two M ion Two Hundred Twenty Th@uawdDollars ($2,220,000.00) to develop, and provides for the elimination of a substantially equal number of unsafe or insanitary dwelling units; and, VEEREAS, the development of the Project will be financed (in part) by the issuance of bonds of the Authority, maturing over a period of 60 years, and said bonds will be secured in part by the net revenues derived from the operation of the Project but will not be so secured as to confer the power of foreclosure or forfeiture on the holders of said bonds; and, WHEREAS, it is necessary to the public health, safety and welfare of the City that the present low income occupants of unsafe or insanitary dwell- ings in the City be provided with safe and sanitary dwellings at rentals they can afford to pay; and, WHEREAS, the City will directly benefit from the construction of new, safe and sanitary dwellings for families with low income and from the elimina- tion of unsafe or insanitary dwellings within the City; NOWt THEREFORE, BE IT ORDAINED BY THE CM COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION to That the City hereby determines that for the purpose of aiding said Au- thority in its efforts to develop a low rent housing project and to eliminate unsafe and insanitary dwellings in the City, the City shall cooperate with the Authority by furnishing munioipal services and facilities for the project in consideration of the navment 9L_COTA sums the Authority to the City in lieu of taxes, all as more fully provided in the form of agreement set forth in Section 2 hereof. SECTION 2• x That the City shall enter into a contract with the Authority substan- tially in the following forma AGHMENT BETWEEN THE CITY OF FORT WORTH AND THE HOUSING AUTHORITY OF THE CITY OF FORT WORTH YVHEREAS, the Housing Authorities Law of the State of Texas provides: Article 1269k, Title 28 "Section 22. The property of an authority is de- olared to be public property used for essential public and governmental purposes and such property and an authority shall be exempt from all taxes and special assessments of the city, the county, the State or any political subdivision thereof; provided, however, that in lieu of such taxes or special as- sessmenta, an authority ajreQ,,t&�ke �nts to the city tq h�a eoouaTy`or any Koh political subdivision for improys- ments, serv�'ioee�ann d facilities IVHn 4hed W sub oily, County, or political subdiYi&iCn or the benefit of a hqusIm prgjeot, in-toevent shall such payments exceed the estimated coat t such city, county or -olitical subdivision of the imprOve- men" a, servioes, or facil ties to be so ?bSnIsih6t.", and by virtue of said provision all property of the Housing Authority of the City of Fort Worth (herein called the "Authority") is therefore exempt from tax- ation by the City of Fort Worth (herein called the "City*) and by all other political subdivisions of the State of Texas; and, '&UMF.aAS, the Authority proposes to develop and administer a low rent housing project (herein called the "Project*) within the territorial limits of the City; and, WHEREAS, the Housing Cooperation Law of the State of Texas authorizes the Authority to contract with respect to the sum or sums (if any) which the Authority may agree to pay to the City and to other political subdivisions in which the Project is situated for the improvements, services and facilities to be furnished for the benefit of a low rent housing project in the City; and, S7EtERMG, the Authority is willing to make certain payments in lieu of taxes to the City and to other political subdivisions in which the Project is situated: NOW, THM3MRS, THIS ACRE=v=M WIC, that in consideration of the mutual promises of the City and the Authority hereinafter set forth, the City and the Authority agree as follows; 1• The following terms whenever used in this agreement shall have the fol- lowing meaning: (a) The term "taxing bodies" shall mean the State of Texas and every political subdivision or taxing unit thereof (includ- ing the City) which shall have authority to levy taxes (or to certify taxes to a taxing body or public officer to be levied for its use and benefit), and in which the Project is situated. x (b) The term *local annual contribution for any year" shall mean an amount equal to: (1) the amount which the taxing bodies would levy for that year (by means of taxes and special assessments on or with respect to the Project) if the Project were operated by private enterprise and subject to normal r taxation and assessment, less (2) the payment in lieu of taxes which the Au- x thority agrees herein to make for that year. (a) The term "federal annual contribution" shall mean the fixed amount of annual contribution payable to the Authority by the United States Housing Authority for the purpose of aid- ing the Authority in achieving and maintaining the low rent character of the Project. (d) The term "useful life of the Project" shall mean the period of physical usefulness of the Project for the purpose of providing dwelling accommodations, but in no event less than the number of years during which any of the bonds is- sued to aid in financing the development of the Project shall remain outstanding. 2. Subject to the terms and conditions of this agreement, the Authority agrees to pay to the City annually One Dollar (41.00) as payments in lieu of taxes and assessments on or with respect to the Project, such payments to com- mence upon the physical completion of the Project and to continue annually dur- ing the useful life of the Project. 3. For the purposes of fixing a time for making such payments and assur- ing prompt payments, the Authority and the City agree that the amounts to be paid annually by the Authority pursuant to paragraph 2 hereof shall be paid at the same time and subject to the same conditions and penalties as ad valorem taxes imposed or levied by the City,; provided, however, that upon failure of the Authority to make payments in lieu of taxes as herein provided, no lien against the Project or the.preperty or assets of the Authority shall attach. Y/ 4• V� The City, agrees that during the period commencing with the date of. the acquisition of any part of the site for the Project and continuing through- out the useful life of the Project, it will'not levy, impose or charge any taxes, special assessments, service fees, charges or tolls against the Proj- ect or against the Authority for or with respect to the Project, with the ex- oeption of the following: (a) The payments in lieu of taxes specified in paragraph 2 of this agreement, and (b) water, sewer and all other services where charges are made in the way of fees to all citizens, it being expressly understood that such charges and fees will be imposed without exoeptiona 5* In the event a local, annual contribution for any year shall equal an amount which is less than twenty per centum of the federal annual contribu- tion for that year and such deficiency is not supplied by cash furnished for the Project by the State of Texas or any political subdivision thereof in which the Project is situated, then and in that event the City waives the right to such portion of the amount payable in lieu of taxes for that year as is necessary to assure that the local, annual contribution for that year will be equal, as near as may be, to not less than twenty per centum of the federal, annual contribution for that yeeri 6. The City agrees that during the period commencing with the date of the acquisition of any part of the site for the Project and continuing through- out the useful life of the Project, it will furnish munilipal services and fa- V N cilities for the Project and the tenants thereof of the same character as those furnished for other dwellings and inhabitants in the City, including but not limited to fire, police and health protection and services, water supply and distribution facilities, fire hydrant service, sewer service, the collection and disposal of garbage, trash and ashes for the project and the tenants there- of; that it will maintain in good repair and working order any and all munici- pal utilities and facilities provided by it for the use and benefit of the Project and the tenants thereof; and that it will maintain in good repair streets, roads and alleys which are adjacent or leading to or which are with- in the boundaries of the Project• 7. The City agrees that each such annual payment in lieu of taxes re- ceived by it will be distributed by the pity to the taxing bodies in such pro- portion that each taxing body will receive from the total payment by the Au- thority hereunder the same proportion as said taxing body's ad valorem tax rate bears to the total ad valorem tax rate which would be levied against the Project if it were operated by a private enterprise pnd subject to normal taxa- tion: l\ 81, The City consents to the assignment of this agreement for the pro- tection of the holders of any bonds issued to aid in financing the development of the Projects 9. This agreement shall continue in full force and effect so long as the title to the Project is held by the Authority or some other public body or agency of the States y IN WITNESS WHEREOF, the City of Fort Worth, Texas and the Housing Authority of the City of Fort Worth have respectively caused this agreement 30 to be duly executed as of the day of Mqy, 1938. CITY OF FORT VVOM BY ATTEST: 1 �l O City Secretary a >v HOUSING AUTHORITY OF THE CITY OF FORT WORTH BY �• Chairman e,M ST: s �` yP 1y - O • DINANCE Fir 1. Date �� r