HomeMy WebLinkAboutOrdinance 24199-05-2020 ORDINANCE NO. 24199-05-2020
AN ORDINANCE RENEWING TAX ABATEMENT
REINVESTMENT ZONE NUMBER NINETY, CITY OF FORT
WORTH, TEXAS; PROVIDING THE EFFECTIVE AND
EXPIRATION DATES FOR THE ZONE, AS RENEWED, AND A
MECHANISM FOR ADDITIONAL RENEWALS OF THE ZONE;
AND CONTAINING OTHER MATTERS RELATED TO THE
ZONE.
WHEREAS,on May 19,2015 the City Council adopted Ordinance No. 21757-05-
2015 designating Tax Abatement Reinvestment Zone Number Ninety, City of Fort Worth,
Texas, a reinvestment zone created pursuant to and in accordance with the Property
Redevelopment and Tax Abatement Act, codified in Chapter 312 of the Texas Tax Code
(the "Zone"); and
WHEREAS, the Zone encompasses the area in the City more specifically
described in Exhibit"A" of this Ordinance; and
WHEREAS, the Zone has been utilized as a valuable and successful economic
development tool for the City, enabling an investment by Winner, LLC of over $300
million in the Zone to date for operation of multiple data centers on behalf of Facebook,
Inc., as reflected in two Tax Abatement Agreements between the City and Winner, LLC
(City Secretary Contract No.46727, as amended, and City Secretary Contract No. 52160),
as supported by an Economic Development Program Agreement(City Secretary Contract
No 46728); and
WHEREAS, pursuant to Section 3 of Ordinance No. 21757-05-2015, the term of
the Zone commenced May 19, 2015 and will expire May 18, 2020, unless renewed by the
Page 1
Ordinance Renewing Tax Abatement Reinvestment Zone Number Ninety,
City of Fort Worth,Texas
City Council for one or more subsequent terms of five (5) years or less, as authorized by
Section 312.203 of the Texas Tax Code; and
WHEREAS, in order to encourage additional significant investment and job
creation in the Zone, the City Council wishes to renew the Zone for an additional term of
five(5)years beyond its original expiration date; and
WHEREAS, on May 5, 2020 the City Council held a public hearing regarding
renewal of the Zone, received information concerning development in the Zone during the
initial term of the Zone, and afforded a reasonable opportunity for all interested persons to
speak and present evidence for or against the creation of the Zone ("Public Hearing");
and
WHEREAS,notice of the Public Hearing was published in a newspaper of general
circulation in the City on April 27 h, 2020, and delivered in writing not later than the
seventh day before the date of the Public Hearing to the presiding officer of the governing
body of each taxing unit that includes in its boundaries real property that is located in the
Zone; and
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH,TEXAS:
Section 1.
FINDINGS.
That after reviewing all information before it regarding renewal of the Zone and
after conducting the Public Hearing and affording a reasonable opportunity for all
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Ordinance Renewing Tax Abatement Reinvestment Zone Number Ninety,
City of Fort Worth,Texas
interested persons to speak and present evidence for or against renewal of the Zone, the
City Council hereby makes the following findings of fact:
I.I. The statements and facts set forth in the recitals of this Ordinance are true and
correct.
1.2. The improvements constructed to date in the Zone, as more specifically outlined in
the Public Hearing, have provided significant benefit to the Zone as well as the
City, and will continue to do so for a period in excess of ten (10) years from the
initial effective date of the Zone, and additional similar investment in the future
will likewise benefit the Zone and the City.
1.3. As a result of renewal of the Zone, the area within the Zone is reasonably likely to
contribute to the continued expansion of primary employment and to attract major
investment in the Zone that will be a benefit to property in the Zone and will
contribute to the economic development of the City.
Section 2.
RENEWAL OF ZONE.
That the Zone is hereby renewed effective May 19, 2020 and shall expire five (5)
years thereafter. The Zone may additionally be renewed by the City Council for one or
more subsequent terms of five (5)years or less.
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Ordinance Renewing Tax Abatement Reinvestment Zone Number Ninety,
City of Fort Worth,Texas
Section 3.
SEVERABILITY.
That if any portion, section or part of a section of this Ordinance is subsequently
declared invalid, inoperative or void for any reason by a court of competent jurisdiction,
the remaining portions, sections or parts of sections of this Ordinance shall be and remain
in full force and effect and shall not in any way be impaired or affected by such decision,
opinion or judgment.
Section 4.
IMMEDIATE EFFECT.
That this Ordinance shall take effect upon its adoption.
ADOPTED AND EFFECTIVE: May 5, 2020
APPROVED AS TO FORM AND LEGALITY:
PPf,r WY
By:Peter Vaky(May 27,202017:21 CDT)
Peter Vaky
Deputy City Attorney IF OR
Mary J. Kayser CU _
City Secretary
TEXAS
M&C:20-0284
Page 4
Ordinance Renewing Tax Abatement Reinvestment Zone Number Ninety,
City of Fort Worth,Texas
EXHIBIT "A"
BOUNDARY DESCRIPTION OF ZONE
EXHIBIT"A"
BOUNDARY DESCRIPTION OF ZONE
DESCRIPTION OF 110.71 ACRES
BEING a tract of land situated in the F. Cuella Survey; Abstract Number 267, Tarrant County,
Texas and being a portion of two tracts of land describe by deed to AIL Investment, L.P.,recorded
in Volume 13588, Page 195 ('Tracts 12 and 13), County Records, Tarrant County, Texas, being
more particularly described by metes and bounds as follows:
BEGINNING at the northeast comer of Lot 10, Block 3, Alliance Gateway North, an addition to
the City of Fort Worth recorded in Instrument Number D208290670, in the south line of Lot 4R,
Block 3 Alliance Gateway North, and addition to the City of Fort Worth recorded in Instrument
Number D209069793,both of said County Records;
THENCE S 89"56'01"E, 368.25 feet; THENCE S 00°04'42"W, 540.00 feet; THENCE S
89055'36"E, 602.74 feet; THENCE N 71°51'00"E, 445.20 feet; THENCE N 62°28'25"E, 296.66
feet;
THENCE N 90000'00"E, 1055.55 feet to the beginning of a curve to the right;
THENCE with said curve to the right, an arc distance of 68.39 feet, through a central angle of
41014'47", having a radius of 95.00 feet, the long chord which bears S 69°22'37"E, 66.92 feet to
the beginning of a curve to the left;
THENCE with said curve to the left, .an are distance of 94.33 feet, through a central angle of
38119'47",having a radius of 10.00 feet,the long chord which bears S 67°55'07"E,92.58 feet;
THENCE S 87005'00"E, 103.97 feet to the beginning of a curve to the right;
THENCE with said curve to the right, an arc distance of 200.88 feet, through a central angle of
05055'58",having a radius of 1940.00 feet, the long chord which bears S 08°09'47"E,200.79 feet;
THENCE S 05015'42"E,237.77 feet;
THENCE S 33052'08"W, 95.68 feet to the beginning of a curve to the left;
THENCE with said curve to the left,an arc distance of 143.68 feet,through a central angle of
02029'57",having a radius of 3294.04 feet,the long chord which bears S 61°40'59"W, 143.67 feet
to the beginning of a curve to the left;
THENCE with said curve to the left,, an arc distance of 955.90 feet, through a central angle of
04°46'16", having.a radius of 11479.16 feet, the long chord which bears S 58908'59"W, 955.62
feet;
THENCE S.55045'15"W,459.78 feet to the beginning of a curve to the right;
THENCE with said curve to the right,an arc distance of 1237.97 feet,through a central angle of
09°18'33", having a radius of 7619.44 feet, the long chord which bears S 60024'08"W, 1236.61
feet;
THENCE S 65°04'38"W, 195.64 feet to the beginning of a curve to the left;
THENCE with said curve to the left,an are distance of 392.71 feet,through a central angle of
05°51'36",having a radius of 3859.72 feet,the long chord which bears S 62107'36"W,392.54
feet;
THENCE S 59011'47"W, 152.11 feet; THENCE S 89*11'47"W, 80.00 feet; THENCE N
36010'14"W, 86.37 feet;
THENCE N 00004'1 TV,20.00 feet to the beginning of a curve to the left;
THENCE with said curve to the left,an arc distance of 167.72 feet,through a central angle of
.12038'40",having a radius of 760.00 feet, the long chord which bears N 06°10'12"W, 167.38
feet to the beginning of a curve to the right;
THENCE with said curve to the right, an arc distance of 162.11 feet, through a central angle of
12°33'05", having a radius of 740.00 feet, the long chord which bears N 06°12'59"W, 161.78
feet;
THENCE N 00003'31"E, 1482,86 feet to the beginning of a curve to the right;
THENCE with said curve to the right, an arc distance of 89.82 feet, through a central angle of
11*58'07",having a radius of 430.00 feet,the long chord which bears N 06°02'35"E, 89.66 feet
to the beginning of a curve to the left;
THENCE with said curve to the left, an are distance of 102.36 feet, through a central angle of
11058'07", having a radius of 490.00 feet, the long chord which bears N 06°02'35"E, 102.17
feet;
THENCE N 00°O1'34"E,425.60 feet;
TFIENCE S 89°56'45"E, 232.00 feet;
THENCE N 00°01'18"E, 115.00 feet to the Point of Beginning and containing 4,822,528 square
feet or 110.71 acres of land more or less.
Tax Abatement Reinvestment Zone No. 90
Intersection of Park Vista Parkway and Alliance Gateway Freeway
Fort Worth, TX
"Exhibit A"
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Copyright 2015 City of Fort Worth. Unauthoriu°d reproduction is a violation of applicable laws. This product is for informational purposes and may not have been prepared
for or be suitable for legal,engineering,or surveying purposes.It does not represent an on-the-ground survey and represents only the approximate relative location of propcn3
boundaries. The City of Fort Worth assumes no responsibility for the accuracy of said data.
City of Fort Worth,Texas
Mayor and Council Communication
DATE: 05/05/20 M&C FILE NUMBER: M&C 20-0284
LOG NAME: 17TIRZ90 RENEWAL
SUBJECT
Conduct Public Hearing and Adopt Ordinance Renewing Tax Abatement Reinvestment Zone No.90,City of Fort Worth,Texas,for Property
Located at the Northeast Corner of Alliance Gateway and Park Vista Boulevard owned by Winner, LLC for an Additional Five-Year
Term(COUNCIL DISTRICT 7)
(PUBLIC HEARING-a. Report of City Staff: Robert Sturns; b.Citizen Presentations;c.Council Action: Close Public Hearing and Act on M&C)
RECOMMENDATION:
It is recommended that the City Council:
1.Conduct a public hearing concerning the renewal of Tax Abatement Reinvestment Zone No.90,City of Fort Worth,Texas,for property located at
the northeast corner of Alliance Gateway and Park Vista Boulevard for an additional five-year term;and
2.Adopt the attached ordinance for the renewal of Tax Abatement Reinvestment Zone No.90,City of Fort Worth,Texas,pursuant to and in
accordance with Chapter 312 of the Texas Tax Code.
DISCUSSION:
On May 19,2015,the City Council adopted Ordinance No.21757-05-2015,designating Tax Abatement Reinvestment Zone No.90,City of Fort
Worth,Texas(the Zone),and approved execution of a Tax Abatement Agreement with Winner LLC, (City Secretary Contract No.46727).Under the
Tax Abatement Agreement,the City agreed to abate 10 percent of the incremental ad valorem taxes on real and business personal property
owned by Winner LLC, (Company)provided that Company expended at least$250,000,000.00 on construction of and equipment for a Facebook
data center located on property in the reinvestment zone.
The Tax Abatement Agreement also provides a mechanism for the Company to acquire additional land adjacent to land in the Zone in order to
expand the project footprint.On October 16,2016,the City Council adopted Ordinance No.22473-10-2016,designating Tax Abatement
Reinvestment Zone No.90-A,City of Fort Worth,Texas,and approved amendment of the Tax Abatement Agreement with the Company(City
Secretary Contract No.46727)to include additional improvements on property it acquired for additional development at 14101 and 14217
Independence Parkway.
On March 26,2019,the City Council adopted Ordinance No.23620-03-2019,designating Tax Abatement Reinvestment Zone No.99,City of Fort
Worth,Texas,and authorized execution of another Tax Abatement Agreement wth the Company(City Secretary Contract No.52160)for the
redevelopment of an existing data center located at 14100 Park Vista Boulevard.
Company now wishes to extend the term of Zone for an additional five-year term for future development opportunities.City staff supports such
action by the City Council.
Under Chapter 312 of the Texas Tax Code(the Code),the maximum term of a reinvestment zone is five years,but the Code allows the City Council
to renew the term of a zone for one or more additional terms of five years. A public hearing must be conducted regarding the creation or
expansion of a reinvestment zone.The exact boundaries of the proposed zone are described in Exhibit A of the attached ordinance.Notice of this
hearing was delivered to the governing body of each affected taxing unit and published in a newspaper of general circulation at least seven days
prior to this hearing.
The area encompassing the Zone continues to meet the statutory criteria for designation as a reinvestment zone under Chapter 312 of the Texas
Tax Code,in that the area is likely,as a result of the continued designation,to contribute to the expansion of the Company's major investment in the
Zone that would be a benefit to the property and that would contribute to the economic development of the City.Further,current and potential future
improvements in the Zone are feasible,practical and will continue to benefit to the land to be included in the Zone and to the City after the existing
Tax Abatement Agreement to be amended, has expired.
Upon adotpion of the attached ordinance,the term of the Zone will automatically be continued for five years beyond the current expiration date of
May 18,2020,and the Zone may be renewed for additonal periods not to exceed five years each.
The Zone is located in COUNCIL DISTRICT 7.
A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that approval of these recommendations and execution of the agreement will have no material effect on the Fiscal
Year 2020 budget.Future effects on revenues and expenditures will be included in the long-term financial forecast.
Submitted for City Manager's Office by: Jay Chapa 5804
Originating Business Unit Head: Robert Sturns 2663
Additional Information Contact: Robert Sturns 2663