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HomeMy WebLinkAbout(0114) PID 18 - Tourism SAP and Assessment Ordinance (FY2021-2022) (rev).PDFORDINANCE NO. AN ORDINANCE APPROVING AND ADOPTING THE FISCAL YEAR 2021- 2022 BUDGET, SIX -YEAR SERVICE PLAN, ASSESSMENT PLAN, AND ASSESSMENT ROLL (TO BE KEPT ON FILE WITH THE CITY SECRETARY) FOR PUBLIC IMPROVEMENT DISTRICT 18 - TOURISM; LEVYING SPECIAL ASSESSMENTS FOR THE COSTS OF CERTAIN IMPROVEMENTS AND SERVICES BENEFITTING PROPERTIES IN PUBLIC IMPROVEMENT DISTRICT 18 — TOURISM DURING FISCAL YEAR 2021-2022; 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 of the City of Fort Worth ("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. 5264-08-2020 to expand the PID to include five additional hotels; WHEREAS, on April 13, 2021, the City Council adopted Resolution No. 5382-04-2021 to further expand the PID to include three additional hotels; WHEREAS, on September 14, 2021, the City Council adopted a Resolution to further expand the PID to include one additional hotel (M&C 21-0636); WHEREAS, Section 372.013 of the Act, as recently amended by the 87t' Texas Legislature through House Bill No. 1543 (effective September 1, 2021), requires the City Council to annually review and adopt an ordinance approving the Service Plan ("Service Plan") for the District; WHEREAS, Sections 372.013 and 372.014 of the Act require the annual Service Plan to (i) cover a period of at least five years; (ii) define the annual indebtedness and the projected costs for improvements; (iii) include an Assessment Plan ("Assessment Plan"); and (iv) include a copy of the notice form required by Section 5.014 of the Texas Property Code (the Service Plan and Assessment Plan are collectively referred to herein as the "Service and Assessment Plan"); WHEREAS, City Council must review the proposed fiscal year 2021-2022 Service Plan and hold a public hearing to receive comments and pass on any objections to the Assessment Plan raised by any owner of Ordinance No. Page 1 of 11 property located within the District and, at the conclusion of the hearing, levy an assessment for the purpose of providing supplemental services and improvements for the PID; WHEREAS, the Service and Assessment Plan is attached hereto as Exhibit A and incorporated herein for all purposes; WHEREAS, City Council desires to approve and adopt the fiscal year 2021-2022 Assessment Roll that was filed with the City Secretary and subject to public inspection in the City's official records prior to the public hearings set forth below ("Assessment Roll"); WHEREAS, the total budgeted cost of the improvements and services in the Service Plan for fiscal year 2021-2022 will be funded by special assessments on the owners/operators of PID hotels with 100 or more rooms, with such 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 B, 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"); 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 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; WHEREAS, the Service and Assessment Plan were previously presented in public hearings conducted by the City Council beginning at 7:00 p.m. on September 14, 2021 (M&C 21-0637) and at 7:00 p.m. on September 21, 2021 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. The Recitals and findings listed above are true and correct and form the basis upon which this Ordinance is being adopted and are incorporated herein by reference. Ordinance No. Page 2 of 11 SECTION 2. The City Council hereby approves and adopts the Service and Assessment Plan and Assessment Roll. In doing so, the City Council finds that the supplemental services and improvements set forth in the Service Plan are feasible and advisable and will serve the needs and desires of the property owners in the PID. SECTION 3. 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 complies with applicable law. SECTION 4. In accordance with Section 372.017, Texas Local Government Code, in order to pay the costs of the improvements and services in the Service Plan provided during Fiscal Year 2021-2022, effective October 1, 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 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 5. 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 are due at the same time that hotel occupancy taxes on the Qualifying Hotels located thereon become due, and 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 Ordinance No. Page 3 of 11 respective due date at the same rate as prescribed Chapter 32, Article II of the City Code, for hotel tax. SECTION 6. If default is made in the payment of any assessments, collection thereof may be enforced by suit in any court of competent jurisdiction, and said City may exercise all of its lawful powers to aid in the enforcement and collection of said assessments. SECTION 7. 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 8. 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 9. 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 10. 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 11. 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 12. The City Secretary is directed to cause a copy of this Ordinance to be recorded in the real property records of each county in which a Hotel Parcel and Qualifying Hotel are located, no later than the seventh (7th) day after the adopted date of this Ordinance. Ordinance No. Page 4 of 11 SECTION 13. This Ordinance takes effect and will 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: Tyler F. Wallach Assistant City Attorney ffKI-M Adopted: September 21, 2021 ATTEST: Ronald P. Gonzales Acting City Secretary Ordinance No. Page 5 of 11 EXHIBIT "A" SERVICE AND ASSESSMENT PLAN City of Fort Worth Six Year Service Plan Public Improvement District No. 18 -Tourism FY21122 FY22123 FY23124 FY24125 FY25126 FY26127 REVENUES PID Assessments $ 3,950,000 $ 4,345,000 $ 4,562,250 $ 4,790,363 $ 4,958,026 $ 5,131,557 Total Funds Available for Use $ 3,950,000 S 4,345,000 $ 4,562,250 $ 4,790,363 $ 4,958,026 $ 5,131,557 EXPENSES Incentives&Sales Efforts $ 1,850,125 $ 2,037,750 $ 2,140,944 $ 2,249,297 $ 2,328,937 $ 2,411,365 Marketing and Research (Promotion/ Advertising) 1,363,25C 1,501,500 1,577,538 1,657,377 1,716,059 1,776,795 Site Visits & Familiarization Tours 194,750 214,600 225,363 236,768 246,151 253,828 Cultural Enhancementsthrouoh Marketlrgand promotion ofthe Arts 292,125 321,750 338,044 355,152 367,727 380,742 Operations & Administration 194,750 214,500 225,361 236,769 245,152 253,827 City Administrative Fee 55,000 55,000 55,000 55,000 55,000 55,000 Total Budgeted Expenses $ 3,950,000 $ 4,346,000 $ 4,562,250 $ 4,790,363 $ 4,958,026 $ 5,131,557 Contribution to Fund Balance - - - - - - Total Expenses $ 3,950,000 $ 4,345,000 $ 4,562,250 $ 4,790,363 $ 4,958,026 $ 5,131,557 Net Change in Fund Balance $ - $ - $ - $ - $ - $ - FundBalance,Beginning ofVearEstimaled 2,834,045 2,834,045 2,834,045 2,834,045 2,834,045 2,834,045 Estimated Fund Balance, End ofYear 2,834,045 2,834,045 2,834,045 2,834,045 2,834,045 2,834,045 Reserve Requirement 724,312 760,527 798,554 826,503 855,431 855,431 Over (Under) Reserve $ 2,109,733 $ 2,073,518 $ 2,035,491 $ 2,007,542 $ 1,978,614 $ 1,978,614 Ordinance No. Assessment Plan The total budgeted costs of the Services will be funded by special assessments on the owners/operators of Tourism PID hotels with 100 or more rooms, with such assessments being in an amount equal to two percent of the consideration received from occupancy of any sleeping room furnished by qualifying hotels. The 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. The current names and addresses of the qualifying hotels that are subject to assessment, along with the ordinance levying such assessments, are on file with the City Secretary of the City of Fort Worth. Ordinance No. Page 7 of 11 Notice Form for Hotel Properties NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO THE CITY OF FORT WORTH, TEXAS CONCERNING THE FOLLOWING HOTEL PROPERTY (insert property address) As the purchaser of the real property described above, you are obligated to pay assessments to the City of Fort Worth, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Services") undertaken for the benefit of the property within Fort Worth Public Improvement District No. 18 - Tourism (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED SERVICES, WHICH MUST BE PAID IN FULL WITH EVERY PAYMENT BY THE HOTEL OF LOCAL HOTEL OCCUPANCY TAX REMITTANCES TO THE MUNICIPALITY. YOUR FAILURE TO PAY THE ASSESSMENT MAY RESULT IN PENALTIES AND INTEREST BEING ADDED TO WHAT YOU OWE, AND MAY INCLUDE THE PURSUIT OF ANY OTHER REMEDY THAT IS AUTHORIZED UNDER SECTION 372.0035(d), LOCAL GOVERNMENT CODE. Information about the calculation of the assessment may be obtained from the City of Fort Worth, Texas. The exact assessment rate will be approved each year by the Fort Worth City Council in the annual service plan update for the District. More information about the assessments, including the assessment rate and due dates, may be obtained from the City Secretary. The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. Date: Signature of Purchaser Ordinance No. Page 8 of 11 EXHIBIT B 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 3600 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 76244 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 Dalworth Inn 812 E. Felix Street Fort Worth, TX 76115 120 DFW Airport Marriott South 4151 Centreport Boulevard Fort Worth, TX 76165 295 DFW Marriott 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 76116 105 Hampton Inn and Suites - DFW South 4201 Reggis Court Fort Worth, TX 76155 116 Hampton Inn and Suites Downtown Fort Worth 1001 Commerce St. Fort Worth, TX 76102 245 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 Holiday Inn - DFW Airport South 14320 Centre Station Road Fort Worth, TX 76155 143 Ordinance No. Page 9 of 11 Holiday Inn Express - Downtown 1111 VV Lancaster Fort Worth, TX 76102 132 Holiday Inn North - Fossil Creek 4635 Gemini Place Fort Worth, TX 76106 126 Home2 Suites by Hilton - Cultural District 3000 & 3012 W Lancaster Ave Fort Worth, TX 76107 114 Homewood Suites - Fossil Creek 3701 Tanacross Fort Worth, TX 76137 137 Homewood Suites - Medical Center 2200 Charlie Lane Fort Worth, TX 76104 157 Hotel Drover, Autograph Collection 200 Mule Alley Drive Fort Worth, TX 76164 200 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 76107 150 Residence Inn - Fossil Creek 5801 Sandshell Drive Fort Worth, TX 76137 114 Residence Inn - Waterside 5825 Arborlawn Drive Fort Worth, TX 76109 119 Sandman Signature Hotel 810 Houston Street Fort Worth, TX 76102 240 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 76103 168 TownePlace Suites Downtown 801 E Belknap Fort Worth, TX 76102 140 TownePlace Suites University 3450 VV Vickery Fort Worth, TX 76107 128 Wood Spring Suites Fort Worth 3501 NE Loop 820 Fort Worth, TX 76137 121 Ordinance No. Page 10 of 11 Worthington Renaissance Hotel 200 Main Street Fort Worth, TX 76102 504 Ordinance No. Page 11 of 11