HomeMy WebLinkAbout2021/01/12-Attachments-IR 21-10535 - Termination of AllianceAirport AuthorityINFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 21-10535
r,j;TE4,t,To the Mayor and Members of the City Council January 12, 2021
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fgk6rA SUBJECT: TERMINATION OF ALLIANCEAIRPORT AUTHORITY, INC.
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On or about June 13, 1989, the City Council authorized and approved the creation of the
AllianceAirport Authority, Inc. ("AAA"), which is an industrial development corporation organized under
the Development Corporation Act. The AAA is authorized to act on behalf of the City for the specific
public purpose of the promotion and development of new and expanded business enterprises
intended to promote and encourage employment and public welfare.
The Board of Directors for the AAA ("Board") is currently comprised of nine members (Mayor and all
Council Members) who are each appointed for a two-year term that expires on July 1, 2021.
As part of the purpose for which it was organized, the AAA issued Special Facilities Revenue
Refunding Bonds for the old American Airlines maintenance facility and a FedEx facility, as further
detailed below:
• American Airlines (Series 2007)- $350,000,000
• FedEX (Series 2006) - $249,540,000
The bonds issued for the American Airlines maintenance facility were deemed fully satisfied, released,
and discharged upon American Airlines' emergence from bankruptcy on December 9, 2013. The
bonds issued for the FedEx facility were redeemed in 2016.
In addition, the AAA is currently a party to an Oil and Gas Lease ("Lease"). The funds collected by the
AAA from the Lease are used to pay any annual existing obligations of the AAA. The Board typically
transfers any remaining funds to the City per Article 11 of the AAA Articles of Incorporation.
Section 501.402 of the Texas Local Government Code allows the Board, with approval by written
resolution of the City Council, to terminate the AAA's existence if the AAA by resolution determines
that: (1) the purpose for which the AAA was formed has been substantially filled; and (2) all bonds
issued by the AAA have been fully paid. Upon termination, title to all funds and property owned by
the AAA are transferred to the City, which will include the Lease.
Staff is recommending that the Board terminate the AAA because it has substantially fulfilled the
purposes for which it was formed (i.e., issuing bonds for the American Airlines maintenance facility
and the FedEx facility) and all bonds have been fully satisfied.
Schedule for Termination:
• On January 12, 2021, the Board will consider a resolution recommending the termination of the
AAA.
• On January 26, 2021, the City Council will consider a resolution approving the termination of
the AAA.
• On February 16, 2021, the Board will consider a resolution terminating the AAA.
If you have any questions concerning this information, please contact Robert Sturns, Economic
Development Director at 817-392-2663 or robert.sturns@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS