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Home My WebLink About(0115) PID 18 Assessment Ordinance (FY2020-2021).PDFORDINANCE NO. AN ORDINANCE LEVYING SPECIAL ASSESSMENTS FOR THE COSTS OF CERTAIN IMPROVEMENTS AND SERVICES BENEFITTING PROPERTIES IN PUBLIC IMPROVEMENT DISTRICT 18 — TOURISM DURING FISCAL YEAR 2020-2021; SETTING CHARGES AND LIENS AGAINST PROPERTY IN THE DISTRICT AND AGAINST THE OWNERS THEREOF; PROVIDING FOR THE COLLECTION OF THE SPECIAL ASSESSMENTS; PROVIDING FOR DUE DATES, PENALTIES, AND INTEREST; PROVIDING FOR RELIANCE ON ORDINANCE AND RECITALS IN EVENT OF A SUIT; PROVIDING A SEVERABILITY CLAUSE; PROVIDING THAT ORDINANCE IS CUMULATIVE OF ALL NON -CONFLICTING PRIOR ORDINANCES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Chapter 372 of the Texas Local Government Code ("Code") authorizes the creation of a public improvement district consisting of non-contiguous territory in which is located hotels meeting certain criteria, with owners/operators of such hotel properties being subject to assessment to pay for the services and benefits provided by the district; and WHEREAS, on August 29, 2017, the City Council adopted Resolution No. 4837-08-2017, establishing Public Improvement District No. 18 - Tourism ("PID") in accordance with Section 372.0035 and other applicable sections of the Code; and WHEREAS, on August 18, 2020, the City Council adopted a Resolution to Expand the PID to include five additional hotels (M&C 20-0551) pursuant to Section 372.0121 of the Code and other applicable section of the Code; WHEREAS, under Section 372.013 of the Code, the City Council must review and approve the annual budget for special, supplemental services to be provided in the PID ("Services") and to determine the amount of assessment that is to be levied against property in the PID to pay for the costs of such services; and WHEREAS, the Services to be provided in Fiscal Year 2020-2021 and their estimated costs are as follows: Incentives and Sales Efforts $1,855,554.00 Marketing and Research $1,443,208.00 Site Visits and Familiarization Tours $309,259.00 Cultural Enhancements through Marketing and Promotion of the Arts $309,259.00 Operations and Administration $206,173.00 City Administrative Fee $55,000.00 Total Expenses $4,178,453.00 The total budgeted cost of the Services is $4,178,453.00, the entirety of which will be funded by special assessments on the owners/operators of PID hotels with 100 or more rooms, with such Ordinance No. Page 1 of 6 assessments being in an amount equal to two percent of revenues that the hotels receive from taxable hotel room night charges and with the names of such hotels being listed in Exhibit "A," which is attached hereto and hereby made a part of this Ordinance for all purposes (such properties hereinafter being referred to as "Hotel Parcels" and the hotels located thereon being referred to as "Qualifying Hotels"); and WHEREAS, the Texas Comptroller of Public Accounts has indicated that owners/operators may seek reimbursement in an amount equal to the special assessment from hotel guests, with such reimbursement being a mandatory charge that is subject to state and local hotel tax (Texas Comptroller Opinion Letter 201111277L, November 8, 2011); and WHEREAS, it is proposed that the owners/operators of the Hotel Parcels located in the PID be assessed at a rate of two percent (2%) of the consideration received from occupancy of any sleeping room furnished by Qualifying Hotels, which assessments shall be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code; and WHEREAS, the Services and proposed assessments were previously presented in public hearings conducted by the City Council beginning at 10:00 a.m. on August 18, 2020 (M&C 13FMS PID 18FY21 BENEFIT) and at 7:00 p.m. on August 25, 2020 in the City Council Chambers in City Hall in the City of Fort Worth, Texas ("Public Hearings"); and WHEREAS, notice of the Public Hearings was published and mailed in accordance with state law, and all persons desiring to be heard were given a full and fair opportunity to be heard at the Public Hearing. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. The Public Hearings are hereby closed, and any and all protests and objections, whether herein enumerated or not, are hereby overruled. SECTION 2. The City Council, from all evidence before it, including all information provided to it and considered in the Public Hearings, finds that the assessments described herein on Hotel Parcels should be made and levied in a manner that results in imposing the costs of the Services on Qualifying Hotels that are similarly benefitted from the provision of those Services. The apportionment of those costs will be based on the special benefits accruing to the Qualifying Hotels on account of the Services provided. As a result, those Qualifying Hotels that sell more guest rooms will pay a greater portion of the costs of the Services because those properties will have received a greater benefit from the promotions and marketing comprising the Services. The City Council further finds that this method of assessment is fair and equitable and results in an apportionment of the costs of the Services that Ordinance No. Page 2 of 6 complies with applicable law. SECTION 3. In accordance with Section 372.017, Texas Local Government Code, in order to pay the costs of the Services provided during Fiscal Year 2020-2021, effective October 1, 2020 the City hereby levies a special assessment against owners/operators of the Hotel Parcels in an amount equal to two percent (2%) of the consideration received from the occupancy of any sleeping room furnished by Qualifying Hotels, which assessments shall be collected in the same manner and in accordance with the same procedures as those established for collection of the City's hotel occupancy tax, as set forth in Chapter 32, Article II of the City Code. SECTION 4. The assessments levied hereunder, together with reasonable attorney's fees and cost of collection, if incurred, are hereby declared to be and are made a lien upon the Hotel Parcels and Qualifying Hotels, and are a personal liability and charge against the real and true owners of such properties, whether such owners are correctly named herein or not. Such liens shall be and constitute the first enforceable lien and claim against the Hotel Parcels and Qualifying Hotels, superior to all other liens and claims, except state, county, school district and city ad valorem taxes. A copy of this Ordinance may be filed with the County Clerk of each county in which a Hotel Parcel and Qualifying Hotel are located, and when so filed shall constitute complete and adequate legal notice to the public concerning the liens hereby assessed against the respective parcels of property and the owners thereof. The sums assessed against the Hotel Parcels shall be and become due at the same time that hotel occupancy taxes on the Qualifying Hotels located thereon become due, and shall become delinquent if not paid by the applicable deadlines for hotel taxes remittance established by Chapter 32, Article II of the City Code. The entire amount assessed against each Hotel Parcel shall bear penalty and interest, from and after the respective due date at the same rate as prescribed Chapter 32, Article II of the City Code, for hotel tax. SECTION 5. If default shall be made in the payment of any assessments, collection thereof shall be enforced by suit in any court of competent jurisdiction, and said City shall exercise all of its lawful powers to aid in the enforcement and collection of said assessments. SECTION 6. The total amount assessed against the respective parcels of property and the owners thereof is in accordance with the proceedings of the City hereto and is permitted by applicable law. Ordinance No. Page 3 of 6 SECTION 7. Full power to make and levy reassessments and to correct mistakes, errors, invalidities, or irregularities in the assessments are, in accordance with the law in force in this City, vested in the City. SECTION 8. In any suit upon any assessment or reassessment, it shall be sufficient to allege the substance of the provision recited in this Ordinance and that the Recitals hereto are in fact true, and further allegations with reference to the proceedings relating to such assessment and reassessment shall not be necessary. SECTION 9. Should any portion, section, or part of a section of this Ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion, or judgment shall in no way impair the remaining portions, sections, or parts of sections of this Ordinance, which shall remain in full force and effect. SECTION 10. This Ordinance shall be cumulative of all other ordinances and appropriations amending the same except in those instances where the provisions of this Ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 11. This Ordinance shall take effect and be in full force and effect from and after the date of its passage. AND IT IS SO ORDAINED. APPROVED AS TO FORM AND LEGALITY: ATTEST: Tyler F. Wallach, Assistant City Attorney Mary J. Kayser, City Secretary M&C: Adopted: August 25, 2020 Ordinance No. Page 4 of 6 EXHIBIT "A" QUALIFYING HOTELS IN THE TOURISM PID Tourism PID Hotels Account Name Address City, State, Zip RMS AC Hotel Fort Worth - Downtown 610 Main St Fort Worth, TX 76102 252 Aloft Downtown Fort Worth 300 Throckmorton Fort Worth, TX 76102 180 American Airlines Training and Conference Center 4601 State Hwy 360 Fort Worth, TX 76155 299 Autograph Collection Downtown Fort Worth 512 Main St. Fort Worth, TX 76102 165 Budget Suites of America - Fossil Creek 3500 NE Loop 820 Fort Worth, TX 76137 366 Candlewood Suites- DFW South 4200 Reggis Drive Fort Worth, TX 76155 174 Courtyard by Marriott- Alliance 3001 Amador Dr. Fort Worth, TX 76177 127 Courtyard by Marriott- Blackstone 609 Main Street Fort Worth, TX 76102 203 Courtyard by Marriott - Fossil Creek 3751 NE Loop 820 Fort Worth, TX 76137 154 Courtyard by Marriott - Stockyards 2537 Main St. Fort Worth, TX 76164 124 Courtyard by Marriott - University Drive 3150 Riverfront Fort Worth, TX 76107 130 Courtyard by Marriott - West at Cityview 6400 Overton Ridge Boulevard Fort Worth, TX 76132 104 Crossland Economy Studios - Fossil Creek 3860 Tanacross Fort Worth, TX 76137 124 Dalworth Inn 812 E. Felix Street Fort Worth, TX 76115 120 DFW Airport Marriott South 4151 Centreport Boulevard Fort Worth, TX 76155 295 DFW Mamott Hotel and Golf Club at Champions Circle 3300 Championship Pkwy Fort Worth, TX 76177 286 Embassy Suites Hotel - Downtown Fort Worth 600 Commerce Street Fort Worth, TX 76102 156 Extended Stay America - City View 5065 Bryant Irvin Rd Fort Worth, TX 76132 104 Fairfield Inn & Suites Downtown 1010 Houston Fort Worth, TX 76102 110 Fairfield Inn & Suites Fossil Creek 3701 NE Loop 820 Fort Worth, TX 76137 106 Hampton Inn and Suites - West/1-30 2700 Green Oaks Fort Worth, TX 76177 105 Hampton Inn and Suites - DFW South 4201 Reggis Court Fort Worth, TX 76155 116 Hampton Inn and Suites Downtown Fat Worth 1001 Commerce St. Fort Worth, TX 76102 245 Hawthorn Suites- University 1701 South University Drive Fort Worth, TX 76107 120 Hilton Fort Worth 815 Main Street Fort Worth, TX 76102 294 Hilton Garden Inn - Fort Worth Alliance Airport 2600 Westport Parkway Fort Worth, TX 76177 127 Hilton Garden Inn - Medical Center 912 Northton Street Fort Worth, TX 76104 157 Ordinance No. Page 5 of 6 Holiday Inn - DFW Airport South 14320 Centre Station Road Fort Worth, TX 76155 143 Holiday Inn Express - Downtown 1111 W Lancaster Fort Worth, TX 76102 132 Holiday Inn North - Fossil Creek 4635 Gemini Place Fort Worth, TX 76106 126 Homewood Suites - Fossil Creek 3701 Tanacross Fort Worth, TX 76137 137 Homewood Suites - Medical Center 2200 Charlie Lane Fort Worth, TX 76104 157 Hyatt Place - Alliance Town Center 3201 Alliance Town Center Fort Worth, TX 76177 130 Hyatt Place - Cityview 5900 Cityview Street Fort Worth, TX 76132 127 Hyatt Place - Stockyards 132 E Exchange FortWorth, TX 76164 100 Hyatt Place - TCU 2500 West Berry Street Fort Worth, TX 76109 127 Kimpton Hotel 714 Main St Fort Worth, TX 76102 232 La Quinta Inn and Suites - Fort Worth North 2501 Polaris Dr Fort Worth, TX 76137 133 La Quinta Inn and Suites - Southwest 6100 Overton Ridge Fort Worth, TX 76132 128 Omni Fort Worth Hotel 1300 Houston Fort Worth, TX 76102 614 Quality Inn and Suites- Cattle Baron 2700 S Cherry Lane Fort Worth, TX 76116 109 Radisson - Fort Worth South Hotel 100 Alta Mesa East Fort Worth, TX 76134 247 Radisson Hotel - Fort Worth Fossil Creek 2540 Meacham Street Fort Worth, TX 76106 247 Residence Inn - Alliance Airport 13400 North Freeway Fort Worth, TX 76177 111 Residence Inn - Cultural District 2500 Museum Way Fort Worth, TX 76177 150 Residence Inn - Fossil Creek 5801 Sandshell Drive Fort Worth, TX 76137 114 Sheraton Fort Worth Hotel and Spa 1601 Commerce Street Fort Worth, TX 76102 429 Spring Hill Suites by Marriott - Stockyards 2315 N Main St Fort Worth, TX 76164 170 Spring Hill Suites by Marriott- University 3250 Lovell Street Fort Worth, TX 76107 145 Stay Express Hotel Fort Worth 2000 Beach Street Fort Worth, TX 76111 168 TownePlace Suites Downtown 801 E Belknap Fort Worth, TX 76102 140 TownePlace Suites University 3450 W Vickery Fort Worth, TX 76107 128 WoodSpring Suites Fort Worth 3501 NE Loop 820 Fort Worth, TX 76137 121 Worthington Renaissance Hotel 200 Main Street Fort Worth, TX 76102 504 Ordinance No. Page 6 of 6