HomeMy WebLinkAboutOrdinance 25232-12-2021 ORDINANCE NO.25232-12-2021
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS
IN THE FORT WORTH PUBLIC IMPROVEMENT DISTRICT NO. 16 - QUAIL
VALLEY FUND IN THE AMOUNT OF $812,542.00, FROM REDUCING FUND
BALANCE, FOR THE PURPOSE OF REIMBURSING ELIGIBLE COSTS TO
THE DEVELOPER UNDER THE FORT WORTH PUBLIC IMPROVEMENT
DISTRICT NO. 16 - QUAIL VALLEY IMPROVEMENT AREA NO. 1 AND
IMPROVEMENT AREA NO. 2 REIMBURSEMENT AGREEMENTS;
PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE
CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH;AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2021-2022 in the
Budget of the City Manager,there shall also be increased estimated receipts and appropriations in the Fort
Worth Public Improvement District No. 16 - Quail Valley Fund in the Amount of $812,542.00, from
reducingfund balance, for the purpose of reimbursing eligible costs to the developer under the Fort Worth
Public Improvement District No. 16 - Quail Valley Improvement Area No. 1 and Improvement
Area No.2 Reimbursement Agreements.
SECTION 2.
That 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 j urisdiction,such decision, opinion or judgment shall in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shallbe and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance 25073-09-2021 and 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
ofsaid prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY: CITY SECRETARY
Jannette S.Goodall(Jan 21,202213:07 CST
Assistant City Attorney Jannette S. Goodall O�FQR'r
ADOPTED AND EFFECTIVE: December 14, 2021
U
XPS
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 12/14/21 M&C FILE NUMBER: M&C 21-1003
LOG NAME: 13QUAIL VALLEYANALSH RANCH PID NO.16 DEVELOPER REIMBURSEMENTS
SUBJECT
(CD 3)Adopt Attached Ordinance Increasing Appropriations in Fort Worth Public Improvement District No. 16-Quail Valley Fund(Walsh
Ranch)by$812,542.00,and Reducing Fund Balance,for the Purpose of Reimbursing the Developer for Eligible Costs Under Reimbursement
Agreements
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance, increasing estimated receipts and appropriations in the Fort Worth Public
Improvement District No. 16-Quail Valley Fund by$812,542.00,for the purpose of reimbursing eligible costs for Walsh Ranch/Quail Valley Public
Improvement District, and reducing fund balance by the same amount,with reimbursements in the amount of$180,350.54 under the Improvement
Area No. 1 Reimbursement Agreement and$632,191.07 under the Improvement Area No.2 Reimbursement Agreement.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to appropriate funds for installment payments under the reimbursement
agreements for the first two phases of Fort Worth Public Improvement District No.16.(Walsh Ranch/Quail Valley)(FWPID#16).
In September 2016,the City Council approved the creation of FWPID#16, encompassing approximately one-fourth of the entire Walsh Ranch
property,as a vehicle to reimburse the developer for certain infrastructure costs. Full development of FWPID#16 will encompass multiple phases
that occur over several years as phases of FWPID#16 are developed.
As outlined in the recently updated Service and Assessment Plan (M&C 21-0602),special assessments on property within Improvement Area No.
1 (IA1)will pay for$6,350,000.00 in improvements,including$5,712,973.00 for paving expenses and$637,027.00 for landscaping expenses; and
special assessments on property within Improvement Area No.2(IA2)will fund$5,850,000.00 in improvements, including$5,013,225.60 for
paving expenses and$836,774.40 for landscaping expenses.
In addition to the PID-funded improvements,the developers are constructing,without reimbursement from FWPID#16,additional improvements in
IA1 in the amount of$23,168,594.00,bringing the total costs of improvements in Improvement Area No. 1 of FWPID#16 to$29,518,594.00. For
IA2,developers are constructing,without reimbursement from FWPID#16,additional improvements in the amount of$21,483,341.00, bringing the
total costs of improvements in Improvement Area No.2 of FWPID#16 to$27,333,341.00. For both IA1 and IA2,the PID is reimbursing less than
25%of the total cost of improvements that would be eligible for PID funding under state law.
The developers are responsible for managing all construction and the associated agreements for the development of infrastructure improvements
within the PID.The City will make quarterly payments to the developers in satisfaction of the reimbursement amount from the special assessments
revenues, less any administrative fees,with assessments and reimbursement paid over a maximum period of thirty years for each improvement
area. Unless and until bonds are issued,the developer is entitled to interest on the unpaid reimbursement amount at the rate of six percent in
years one and two,and five percent in years three through thirty.
Reimbursement for Fiscal Year 2022 is the fourth of thirty collection periods for IA1 and the first of thirty collection periods for IA2. Therefore,the
interest rate for Fiscal Year 2022 for IA1 collections is 5.00%and for IA2 the interest rate on collections is 6.00%.
Quarterly payments made through September,2021 for the Improvement Area#1 Reimbursement Agreement total$1,248,663.46,of which
$257,488.00 has been applied to reduce the original principal balance and$991,175.46 was applied towards interest earned. The original
Improvement Area#1 balance was$6,350,000.00,of which$$5,977,259.53 will remain outstanding following the application of the December
reimbursement.
This payment of$632,191.07 represents the first one for the Improvement Area#2 Reimbursement Agreement and will be allocated$374,239.75
to principal and$257,951.32 to interest.The original Improvement Area#2 balance is$5,850,000.00,of which$5,475,760.25 will remain
outstanding following the application of the December reimbursement.
Per the terms of the Master Reimbursement Agreement for the Walsh Ranch/Quail Valley PID(CSC 49300),the City agreed that-if certain
conditions reflecting expeditious development of the entire PID were met-it would consider issuing revenue bonds secured by and funded out of
PID assessment revenues to accelerate reimbursement to the developers. It is anticipated revenue bonds for Improvement Area#1 would be
presented for Council consideration during Fiscal Year 2022. To the extent bond proceeds are not sufficient to pay the entire balance of the
reimbursement amount for Improvement Area#1, incremental repayments from PID assessments will resume following full repayment of the bonds
and continue through year thirty,with interest on such installments tied to the interest rate of the bonds
FWPID#16 is located in COUNCIL DISTRICT 3.
A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are currently available in the fund balance within the FWPID#16-Quail Valley Fund and upon approval
of the above recommendation and adoption of the attached appropriation ordinance,funds will be available in the operating budget of the FWPID
#16-Quail Valley Fund. Prior to an expenditure being incurred,the Financial Management Services Department has the responsibility of verifying
the availability of funds.
Submitted for City Manager's Office by: Jay Chapa 5804
Originating Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Alex Laufer 2268
John Samford 2318
Expedited