Loading...
HomeMy WebLinkAboutOrdinance 2071 Alt • Al ' ORDINANCE NO. A0 7l AN ORDINANCE REAFFIRMING THE AUTHORIZATION FOR THE ACCEPTANCE OF CERTAIN PAYir=S IN LIEU OF TAXES FROM THE HOUSING AUTHORITY OF THE CITY OF FORT WORTH, TEXAS; APPROVING A FORM OF CONTRACT WITH SAID AUTHORITY WITH RESPECT THERETO, AND AUTHORIZING THE EXECUTION OF SAID CONTRACT. WHEREAS, the Housing Authority of the City of Fort Worth, Texas (herein called the "Authority") proposes to develop and administer a low-rent housing project (herein called the "Project") within the ter- titorial limits of the City of Fort Worth, Texas (herein called the "City"), and which Project was originally intended to include approxi- mately five hundred (500) dwelling units costing approximately $2,220,000.00; and WHEREAS, the property of the Authority is declared to be exempt from all taxes and special assessments by the Housing Authorities Law of the State of Texas; and WHEREAS, in lieu e-f takes and sgeoial assessments, the Authority may make payments to the City for municipal services and facilities to be furnished by the City, and did agree to make certain payments in lieu of taxes during the life of the Project; and WHEREAS, the City, on May 18, 1936, adopted Ordinance No. 1995,. which included a form of agreement providing for the exemption of the property of the Authority from taxes and special assessments, and pro- viding certain payments in lieu thereof; and WHEREAS, the Authority did on May 30, 1936, adopt a resolution authorizing the execution of the identical form of agreement approved by the City; and WHEREAS, the duly authorized officers of the City and the Authority signed and executed the form of agreement contained in the aforesaid Ordinance No. 1995, which constitutes the contract now existing between the City and the Authority, there being no separate instrument evidenc- ing such agreement; and WHEREAS, it now appears that the Project will include as many as five hundred sevent7-f6ur(574) dwelling units costing approximately $2,478,000.00, and that the City will directly benefit from the con- struction of such new dwelling units for families of low income; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: Section 1. That the City hereby reaffirms the determination that for the pur- pose o-f aiding said Authority in its efforts to develop a low rent housing project in the City, the City shall cooperate with the Authority by furnishing municipal services and facilities for the Project in con- sideration of the payment of certain sums by the Authority to the City in lieu of taxes, all as more full provided in the form of agreement set forth in Section 2 hereof. Section 2. That the City shall enter into a new contract with the Authority substantially in the form of the contract approved and authorized by the ordinance adopted on May 18, 1938, which shall read as follows: AGREEMENT BETWEEN THE CITY OF FORT WORTH, TEXAS AND THE HOUSING AUTHORITY OF THE CITY OF FORT WORTH, TEXAS WHEREAS, The Housing Authorities Law of the State of Texas provides: Article 1269k, Title 28 "Section 22. The property of an authority is declared to be public property used for esaential public and governmental pur- poses 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 assessments, an authority may agree to make payments to the city or the county or any such political subdivision for improvements, services, and facilities furnished by such city, county, or political subdivision for the benefit of a housing project, but in no event shall such payments exceed the estimated cost to such city, county or political sub- division of the improvements, services or facilities to be so furnished. and by virtue of said provision all property of the Housing Authority of the City of Fort Worth, Texas (herein called the "Authority") is therefore exempt from taxation by the City of Fort Worth, Texas (here- in called the "City") and by all other political subdivisions of the State of Texas; and WHEREAS, The Authority proposes to develop and administer a low rent housing project (herein called the "Project") within the terri- torial limits of the City; and WHEREAS, The Housing Autho.rltles Law of the State of Texas auth- orizes the Authority to contract with respect to the sum or sums which the Authority may agree to pay to the City and to other political sub- divisions in which the Project is situated for the improvements, ser- vices and facilities to be furnished for the benefit of a low rent housing project in the City; and WHEREAS, 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, THEREFORE, THIS AGREEMENT WITNESSETH, 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 following meaning: (a) The term "taxing bodies" shall mean the State of Texas and every political subdivision or taxing unit thereof (including the City) which shall have auth- ority 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. (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 taxation and assessment, less (2) the payment in lieu of taxes which the Au- thority agrees herein to make for that year. (c) 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 aiding the Authority in achieving and main- taining 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 pur- pose of providing dwelling accommodations, but in no event less than the number of years during which any of the bonds issued 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 ($1.00) as payment in lieu of taxes and assessments on or with respect to the Project, such payments to commence upon the physical completion of the Project and to continue annually during the useful life of the Project. 3• For the purposes of fixing a time for making such payments and assuring 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 advalorem taxes imposed or levied by the City; pro- vided, however, that upon failure of the Authority to make payments in lieu of taxes as herein provided, no lien against the Project or the property or assets of the Authority shall attach. 4. 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 throughout the useful life of the Project, it will not levy, impose or charge any taxes, special assessments, service fees, charges or tolls against the Project or against the Authority for or with respect to the Project, with the exception of the followings (a) The payments in lieu of taxes specified in para- graph 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 exception. 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 contribution 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 contri- bution for that year. 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 con- tinuing throughout the useful life of the Project, it will furnish mmicipal services and facilities for the Project and the tenants there- of 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 facili- ties, fire hydrant service, sewer service, the collection and disposal of garbage, trash and ashes for the Project and the tenants thereof; that it will maintain in good repair and working order any and all municipal utilities and facilities provided by it for the use and bene- fit 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 within 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 City to the taxing bodies in such proportion that each taxing body will receive from the total pay- ment by the Authority 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 and subject to normal taxation. 8. 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 Project. 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 State. 100 Upon the execution of this contract by the City and the Authority, the contract included in the ordinance adopted by the City on May 18, 1938, shall be terminated; provided, however, that the termination of said contract shall not impair or vitiate any act performed or pro- ceedings taken thereunder prior to such termination, but all such acts or proceedings shall be continued under the provisions of this contract, it being expressly understood and agreed that this contract is executed in lieu of and in continuation of such prior contract. IN WITNESS WHEREOF, The City of Fort Worth, Texas and the Hous- ing Authority of the City of Fort Worth, Texas have respectively caused this agreement to be duly executed as of the day of , 194o. CITY OF FORT WORTH, TEXAS al . y1 Mayor s� ATTEST: City Secretary HOUSING AUTHORITY OF THE CITY OF FORT WORTH, TEXAS By ha rman (SEAT) FATTEST; Ole Secretary . T section 3. That the Mayor and the City Secretary be and they hereby are authorized and directed to execute said contract, in the form set forth in section 2 hereof, in the name and on behalf of the City of Fort Worth, Texas, Section 4. That this Ordinance shall be in full force and effect from and after its passage. / Q* ORDINANCE No T ",4eAl" 1�t Date— Filed _ day of City Secretary a