HomeMy WebLinkAboutResolution 3999-06-2011A Resolution
NO. 3999 -06 -2011
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT
WHEREAS, the City of Fort Worth, Texas (the "City ") is a home -rule
municipality and political subdivision of the State of Texas;
WHEREAS, the City expects to pay from available funds expenditures in
connection with the acquisition of 75 acres of real property located at 501
West Felix, Fort Worth, Texas (the "Property ") prior to the issuance of
obligations by the City in connection with the financing of the Property;
WHEREAS, the City finds, considers, and declares that the
reimbursement of the City for the payment of such expenditures will be
appropriate and consistent with the lawful objectives of the City and, as such,
chooses to declare its intention, in accordance with the provisions of Section
1.150 -2 of the Treasury Regulations, to reimburse itself for such payments at
such time as it may choose to issue obligations to finance the Project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
Section 1. The City reasonably expects it will incur debt, as one or more
series of obligations, with an aggregate maximum principal amount not to
exceed $75,000,000, for the purpose of paying the aggregate costs of the
Property. Such declaration of intent, however, does not bind the City to incur
debt for such purpose.
Section 2. All costs to be reimbursed pursuant hereto will be capital
expenditures. No tax - exempt obligations will be issued by the City in
furtherance of this Statement after a date which is later than 18 months after
the later of (1) the date the expenditures are paid or (2) the date on which the
property, with respect to which such expenditures were made, is placed in
service.
Section 3. The foregoing notwithstanding, no tax - exempt obligation will
be issued pursuant to this Statement more than three years after the date any
expenditure which is to be reimbursed is paid.
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Resolution 3999 -06 -2011
Date: June 14, 2011
Adopted this 141h day of June 2011.
ATTEST:
Marty Hendrix, City Secretary
ORT RT
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APPROVED
CITY COUNCIL
,SUN 14 2011
City Secretary of the
City of Fort Worth, Texas
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/14/2011 - 19734 -06 -2011 / 3999 -06 -2011
DATE: Tuesday, June 14, 2011 REFERENCE NO.: G -17301
LOG NAME: 06FINAL ACQUISITION OF GSA PROPERTY
SUBJECT:
Adopt Supplemental Appropriation Ordinance Increasing Appropriations in the General Fund in the Amount
of $5,782,500.00 and Decreasing the Unaudited, Unreserved, Undesignated General Fund Balance by
the Same Amount, Authorize Final Payment of $5,782,500.00 for Acquisition of Property at 501 West Felix
Street for Proposed New Public Safety Training Facility, and Adopt Resolution Expressing Official Intent to
Reimburse Funds (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached supplemental appropriation ordinance in the General Fund in the amount of
$5,782,500.00 and decreasing the unaudited, unreserved, undesignated General Fund Balance by the
same amount;
2. Authorize final payment in the amount of $5,782,500.00 for the acquisition of 75 acres of property at
501 West Felix Street for development of and use as a new public safety training facility; and
3. Adopt a Resolution expressing official intent to reimburse the aggregate costs of the property through
one or more series of obligations, though such intent does not bind the City to incur debt for such purpose.
DISCUSSION:
The current public safety training center located at 1000 Calvert Street was developed over the past 50
years to train the City's police and fire personnel. Due to its age, limited capacity and functionality, and the
impacts of the bypass channel associated with the Trinity River Vision project, it has become necessary to
replace the current facility. After an in -depth analysis of potential locations, staff has determined that the
most appropriate location is the Federal Depot property located at 501 West Felix Street, just south of
Felix and east of Hemphill in south central Fort Worth. This location has numerous benefits including good
freeway access, central location, proximity to current City facilities and existing zoning and infrastructure.
The Federal Government, through the General Services Administration (GSA), recently placed 75 acres of
property up for auction within the portion of the Federal Depot area that was previously identified by staff
as being most appropriate for development of the public safety training facility. The auction began on
March 10, 2011 via the Internet and closed on May 17, 2011.
On May 3, 2011, the City Council (M &C G- 17266) authorized staff to participate in the auction by
authorizing payment of $150,000.00 for Required Bid Deposit. On May 10, 2011, the City Council (M &C L-
15179) authorized payment of up to $1,000,000.00 for the required down payment on the purchase of the
property. The City was the high bidder on the property at $6,425,000.00. As the high bidder, the
$150,000.00 deposit was applied towards the purchase price of the property and the City was required to
Logname: 06FINAL ACQUISITION OF GSA PROPERTY Page 1 of 2
submit an additional $492,500.00 by May 24, 2011, in order to complete GSA's 10% down payment
requirement. The closing date on the property transaction with GSA is 60 days following bid acceptance,
which means the remaining balance of the purchase price, $5,782,500.00, is due no later than July 18,
2011.
Because the closing date for the property is approaching quickly, staff recommends proceeding with the
land acquisition process using general fund dollars, with reimbursement to be made to the general fund at
a later date. The reimbursement will be accomplished in part by the proceeds from the sale of the existing
public safety training center facility to the Tarrant Regional Water District in the amount of
$4,196,925.00. The remainder of the reimbursement will come from additional funding sources currently
being explored by staff, which may include the issuance of one or more series of obligations, and
therefore staff recommends the adoption of the attached Resolution to preserve the option to issue
debt. The Resolution specifically states, however, that the declaration of the intent to incur debt does not
bind the City to do so.
This property is located in COUNCIL DISTRICT 9, MAPSCO 91 N.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that upon the approval of the above
recommendations and adoption of the attached supplemental appropriation ordinance, funds will be
available in the current operating budget, as appropriated, of the General Fund. Upon approval, the
unaudited, unreserved, undesignated fund balances of the General Fund will be $5,309,211.09 below the
minimum reserve as outlined in the Financial Management Policy Statements. In addition to the proceeds
from the sale of the existing public safety training center, Staff is seeking other funding sources to restore
the General Fund fund balance within the current fiscal year.
FUND CENTERS:
TO Fund /Account/Centers FROM Fund /Account/Centers
GG01 541100 0901100 $5.782,500.00 GG01 541100 0901100 $5,782,500.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating-Department Head: Randle Harwood (6101)
Additional Information Contact: Mark Rauscher (2446)
Logname: 06FINAL ACQUISITION OF GSA PROPERTY Page 2 of 2