HomeMy WebLinkAboutIR 9497 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9497
To the Mayor and Members of the City Council July 10, 2012
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SUBJECT: EXECUTION OF INTERFUND LOAN AGREEMENT BETWEEN
rF TRANSPORTATION & PUBLIC WORKS AND AVIATION DEPARTMENTS FOR
IMPROVEMENTS TO NORTH RIVERSIDE DRIVE BETWEEN HERITAGE TRACE
PARKWAY AND NORTH TARRANT PARKWAY
Background
Due to increased development along North Riverside Drive and North Tarrant Parkway, traffic
congestion has increased and safety has become a concern. To help alleviate this problem, the
Tax Increment Reinvestment Zone Number Seven (TIF 7) Board of Directors approved funding
for improvements to North Riverside Drive between Heritage Trace Parkway and Dalton Street on
April 30, 2010.
On September 14, 2010, the City's Housing & Economic Development Committee recommended
supporting additional improvements to North Riverside Drive in-line with the community's
priorities. In response to the Committee's recommendations, on September 30, 2010, the TIF 7
Board of Directors approved the execution of a Development Agreement with the City of Fort
Worth for the widening of North Riverside Drive between Heritage Trace Parkway and Golden
Triangle Boulevard (City Contract No. 41452 -Phase II), with the project to be financed through an
Interfund Loan Agreement of mineral interest revenues from the Aviation Department to the
Transportation & Public Works Department.
Interfund Loan Agreement Terms
Once approved by City Council, the Interfund Loan Agreement between the Transportation &
Public Works and Aviation Departments will authorize the Aviation Department to loan
$10,400,000.00 needed for road improvements to North Riverside Drive in accordance with the
Revenue and Expenditure Policies for Gas Lease Revenues as outlined in the City's Financial
Management Policy Statements (FMPS).
Pursuant to the FMPS, loan repayment must be from an independent revenue source and not
from the City's General Fund. In this case, the loan between the Transportation & Public Works
and Aviation Departments will be reimbursed by increment collected in the TIF 7 district. It is
estimated that the TIF 7 district would re-pay the loan in annual payments, including interest
within seven years. As this seven-year period is longer than the five-year payback policy outlined
in the City's FMPS, approval of the Interfund Loan Agreement will require suspension of the
FMPS policy to re-pay the loan within five years. There is no penalty for repaying the loan within
a shorter timeframe.
Lower Design and Construction Cost Estimates
As design progressed, it became clear that the road improvement project would come in under
budget. Therefore, the TIF 7 Board of Directors approved Amendment No. 1 to the Development
Agreement on June 25, 2012 to expand the definition of "Project" to include design and
construction costs to improve North Riverside Drive from Golden Triangle Boulevard to Shiver
Road (Phase III). Additionally, if it is determined the full $10,400,000.00 is sufficient to
accomplish the goals of Phase III, the Amendment would also allow for design and
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9497
To the Mayor and Members of the City Council July 10, 2012
`�` Page 2 of 2
r
SUBJECT: EXECUTION OF INTERFUND LOAN AGREEMENT BETWEEN
rF TRANSPORTATION & PUBLIC WORKS AND AVIATION DEPARTMENTS FOR
IMPROVEMENTS TO NORTH RIVERSIDE DRIVE BETWEEN HERITAGE TRACE
PARKWAY AND NORTH TARRANT PARKWAY
construction costs for road improvements to North Riverside Drive from Shiver Road to North
Tarrant Parkway (Phase IV).
Next Steps
On July 17, 2012, City staff will present an M&C to City Council authorizing the proposed
Interfund Loan Agreement between the Transportation & Public Works and Aviation Departments.
Should any questions arise, please contact Jay Chapa, Director of Housing and Economic
Development at 817-392-5804.
Tom Higgins
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS