HomeMy WebLinkAbout(0063) PID 18 Assessment Ordinance (FY2020-2021) Expanded (updated).PDFORDINANCE NO.
AN ORDINANCE LEVYING SPECIAL ASSESSMENTS FOR THE COSTS OF
CERTAIN IMPROVEMENTS AND SERVICES BENEFITTING CERTAIN
ADDITIONAL HOTEL PROPERTIES IN PUBLIC IMPROVEMENT
DISTRICT 18 — TOURISM DURING THE REMAINDER OF 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;
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;
WHEREAS, on August 18, 2020, the City Council adopted Resolution No. 5246-08-2020 to
Expand the PID to include five additional hotel properties pursuant to Section 372.0121 of the Code
and other applicable sections of the Code;
WHEREAS, on August 25, 2020, the City Council approved the following: (i) fiscal year
2020-2021 budget in the amount of $4,178,453.00, (ii) Seven -Year Service Plan, and (iii) assessment
roll (M&C No. 20-0577);
WHEREAS, on August 25, 2020, the City Council also adopted Ordinance No. 24370-08-
2020, levying special assessments on property located in the PID for fiscal year 2020-2021 ("Original
Qualifying Hotels"), which assessments were based on the approved budget;
WHEREAS, on April 6, 2021, the City Council conducted a public hearing on the following
matters related to the PID: (i) expansion of the PID to include three additional hotel properties and the
advisability of the improvement and services to be provided ("Services"), (ii) an updated and revised
fiscal year 2020-2021 budget and Seven -Year Service Plan, and (iii) the 2020-2021 assessment for the
three additional hotel properties (M&C No. 21-0228);
WHEREAS, the total revised budgeted cost of the Services for fiscal year 2020-2021 is
$2,800,000.00 for all hotel properties within the PID, including the three additional hotel properties,
which is set forth below in more detail:
Ordinance No.
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Services
Previously
Amended Budget for
Approved Budget
Fiscal Year 2020-2021
for Fiscal Year
2020-2021
Incentives and Sales
$1,855,554.00
$1,262,000.00
Efforts
Marketing and Research
$1,443,208.00
$972,000.00
Site Visits and
$309,259.00
$81,000.00
Familiarization Tours
Cultural Enhancements
$309,259.00
$257,000.00
through Marketing and
Promotion of the Arts
Operations and
$206,173.00
$173,000.00
Administration
City Administrative Fee
$55,000.00
$55,000.00
Totals
$4,178,453.00
$2,800,000.00
WHEREAS, on April 13, 2021, the City Council conducted a second public hearing on the
above -stated PID matters and took the following actions (M&C Log Name: 17PID 18
MIDYEARFY21):
• Adopted a Resolution to further Expand the PID ("Expansion Resolution") to include
the three additional hotel properties listed in Exhibit A, which is attached hereto and
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"), pursuant to Section 372.0121 and other applicable sections of
the Code;
• Adopted a resolution updating and revising the fiscal year 2020-2021 budget, as set
forth above, and Seven -Year Service Plan; and
• Adopted this Ordinance levying special assessments on the Hotel Parcels for the
remaining Fiscal Year 2020-2021.
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);
WHEREAS, it is proposed that the owners/operators of the Hotel Parcels be assessed at a rate
of two percent (2%) of the consideration received from occupancy of any sleeping room furnished by
the Qualifying Hotels, which assessments will 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
Ordinance No.
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WHEREAS, notice of the above -stated public hearings on April 6, 2021 and April 13, 2021,
("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 Hearings.
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
and Original 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
and the Original Qualifying Hotels on account of the Services provided. As a result, those Qualifying
Hotels and Original 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 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 the remaining Fiscal Year 2020-2021, 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 will 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. This is effective on the date that the Expansion Resolution is published one time
in a newspaper of general circulation in the City, which date will be memorialized and on file with the
City Secretary of the City of Fort Worth.
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
Ordinance No.
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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 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 are 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.
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 will 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 will in no way impair the remaining portions, sections, or parts of sections of this Ordinance,
which remain in full force and effect.
SECTION 10.
This Ordinance is 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
Ordinance No.
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ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances
and appropriations are hereby expressly repealed.
SECTION 11.
This Ordinance takes effect and is 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: April 13, 2021
Ordinance No.
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EXHIBIT "A"
QUALIFYING HOTELS AND HOTEL PARCELS
Account Name
Address
City, State, Zip
RMS
Home2 Suites — Cultural District
3000 and 3012 W
Fort Worth, TX
114
Lancaster Avenue
76107
Hotel Drover
200 Mule Alley Drive
Fort Worth, TX
200
76164
Residence Inn Waterside — Fort Worth
5825 Arborlawn Drive
Fort Worth, TX
119
Southwest
76109
Ordinance No.
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