HomeMy WebLinkAboutOrdinance 25301-01-2022 ORDINANCE NO. 25301-01-2022
AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE
CITY OF FORT WORTH AS "TAX ABATEMENT
REINVESTMENT ZONE NUMBER ONE HUNDRED AND THREE,
CITY OF FORT WORTH, TEXAS"; PROVIDING THE
EFFECTIVE AND EXPIRATION DATES FOR THE ZONE AND A
MECHANISM FOR RENEWAL OF THE ZONE; AND
CONTAINING OTHER MATTERS RELATED TO THE ZONE.
WHEREAS,pursuant to the City of Fort Worth's ("City") Tax Abatement Policy,
which was adopted by the City Council to be effective on January 29, 2021 by way of
Resolution No. 5342-02-2021 ("Tax Abatement Policy"), the City has elected to be
eligible to participate in tax abatement and has established guidelines and criteria
governing tax abatement agreements entered into between the City and various third
parties, as authorized by and in accordance with the Property Redevelopment and Tax
Abatement Act, codified in Chapter 312 of the Texas Tax Code ("Code");
WHEREAS, the City Council desires to promote the development of the area in
the City more specifically described in Exhibit "A" of this Ordinance ("Zone") through
the creation of a reinvestment zone for the purpose of supporting new business investment
or expansion, as authorized by and in accordance with Chapter 312 of the Code;
WHEREAS, MP Magnetics LLC., or an Affiliate, ("Company") wishes to
expend or cause to be expended at least$40 million in real property improvements for the
development of Company's manufacturing operations and corporate office to be located in
the Zone, and Company intends to install new taxable tangible business personal property
at the facility worth at least $60 million that will ultimately result in a combined real and
personal property investment of at least$100 million (collectively,the"Improvements");
WHEREAS, Company has applied for real and business personal property tax
abatements from the City in return for the installation of the Improvements in the Zone and
compliance with certain other employment and spending requirements;
WHEREAS,to foster economic development in the Zone, and the City, in general,
it is anticipated that the City will enter a tax abatement agreement(s) for one or more
Improvements within the Zone;
WHEREAS,on January 11,2022,the City Council held a public hearing regarding
the creation of the Zone, received information concerning the Improvements proposed for
the Zone, and afforded a reasonable opportunity for all interested persons to speak and
present evidence for, or against, the creation of the Zone ("Public Hearing"), as required
by Section 312.201(d)of the Code;
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Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Three,
City of Fort Worth,Texas
WHEREAS,notice of the Public Hearing was published in a newspaper of general
circulation in the City at least seven (7) days prior to the Public Hearing, which satisfies
the requirement of Section 312.201(d)(1)of the Code; and
WHEREAS,in accordance with Sections 312.201(d)(2)and(e)of the Code,notice
of the Public Hearing was also delivered, in writing, to the presiding officer of the
governing body of each taxing unit that includes in its boundaries real property that is to
be included in the proposed Zone not later than the seventh day before the date of the public
hearing.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH,TEXAS:
SECTION 1.
FINDINGS.
That, after reviewing all information before it regarding the establishment of the
Zone and after conducting the Public Hearing and affording a reasonable opportunity for
all interested persons to speak and present evidence for,or against,the creation of the Zone,
the City Council hereby makes the following findings of fact:
1.1. The statements and facts set forth in the recitals of this Ordinance are true and
correct. Therefore, the City has met the notice and procedural requirements
established by the Code for creation of the Zone under Chapter 312 of the Code.
1.2. The Improvements proposed for the Zone, as more specifically outlined in the
Public Hearing, are feasible and practical and,once completed will benefit the land
included in the Zone as well as the City for a period of more than ten (10) years,
which is the statutory maximum term of any tax abatement agreement entered into
under the Chapter 312 of the Code.
1.3. As a result of designation as a reinvestment zone, the area within the Zone is
reasonably likely to contribute to the expansion of primary employment and to
attract major investment in the Zone that will be a benefit to property in the Zone
and will contribute to the economic development of the City.
SECTION 2.
DESIGNATION OF ZONE
That the City Council designates the Zone described in the boundary description
attached hereto as Exhibit "A" and made a part of this Ordinance for all purposes as a
reinvestment zone for purposes permitting tax abatement as may be found desirable by the
City or any other eligible taxing units for purposes authorized by and in accordance with
Chapter 312 of the Code. This Zone will be known as "Tax Abatement Reinvestment
Zone Number One Hundred and Three,City of Fort Worth,Texas." This project is eligible
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Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Three,
City of Fort Worth,Texas
for commercial/industrial tax abatements per Section 4 of the Tax Abatement Policy
because it concerns a Target Industry(Corporate and Regional Headquarters).
SECTION 3.
TERM OF ZONE
The Zone takes effect upon the effective date of this Ordinance and expires seven
(7) years thereafter. The Zone may be renewed by the City Council for one or more
subsequent terms not to exceed five years, unless otherwise allowed by law.
SECTION 4.
SEVERABILITY
If any portion, section, or part of a section of this Ordinance is subsequently
declared invalid, inoperative, or void for any reason by a court of competent jurisdiction,
the remaining portions, sections or parts of sections of this Ordinance will remain in full
force and effect and shall not in any way be impaired or affected by such decision,opinion,
or j udgment.
SECTION 5.
IMMEDIATE EFFECT.
That this Ordinance takes effect upon its adoption.
APPROVED AS TO FORM ATTESTED BY:
AND LEGALITY:
J ette S.Goodall(Jan 26,202213• CST)
Tyler F Wallach Jannette Goodall
Senior Assistant City Attorney City Secretary
ADOPTED AND EFFECTIVE: January 25, 2022
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Page 3
Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Three,
City of Fort Worth,Texas
EXHIBIT "A"
BOUNDARY DESCRIPTION OF ZONE
Being a tract of land situated in the F. Cuella Survey, Abstract Number 267, Tarrant County,
Texas, and being a portion of that 48.707 acre tract of land as described by deed to ADL
Development, L.P., and recorded in Volume 13588, Page 173, county records, Tarrant County,
Texas, said tract of land being more particularly described by metes and bounds as follows:
Beginning at a 5/8 inch iron rod with plastic cap stamped "Carter& Burgess"found at the
northwest corner of Lot 2, Block 2, Alliance Gateway Addition, an addition to the City of Fort
Worth as recorded in Cabinet A, Slide 5971, Plat Records, Tarrant County, Texas and being in
the southerly right-of-way line of State Highway No. 170 (a variable width right-of-way);
Thence S 00' 21' 12" W, 1057.76 feet along the westerly line of said Lot 2, Block 2, to a 5/8 inch
iron rod with plastic cap stamped "Carter& Burgess" set in the northerly line of Alliance
Gateway-Phase I Association Tract as recorded in County Clerk's Filing No. D206240552, said
county records;
Thence along the northerly line of said Alliance Gateway-Phase I Association Tract, the
following bearings and distances:
N 890 38' 49" W, 450.17 feet to a 5/8 inch iron rod with plastic cap stamped "Carter& Burgess"
set at the beginning of a curve to the right;
150.30 feet along the arc of said curve to the right, through a central angle of 440 09' 43", a
radius of 195.00 feet and a long chord of N 670 33' 57"W, 146.61 feet to a 5/8 inch iron rod with
plastic cap stamped "Carter& Burgess" set, the beginning of a reverse curve to the left;
204.25 feet along the arc of said curve to the left, through a central angle of 44' 09' 43", a radius
of 265.00 feet and a long chord of N 670 33' 57" W, 199.24 feet to a 5/8 inch iron rod with plastic
cap stamped "Carter& Burgess" set;
N 890 38' 49"W, 69.01 feet to a 5/8 inch iron rod with plastic cap stamped "Carter& Burgess"
set in the easterly right-of-way line of independence parkway at the beginning of a non-tangent
curve to the right;
Thence 79.00 feet along the arc of said curve to the right and along said easterly right-of-way
line, through a central angle of 000 54' 59", a radius of 4940.00 feet and a long chord of N 050
07' 17"W, 79.00 feet to a 5/8 inch iron rod with plastic cap stamped "Carter& Burgess"found;
Thence N 040 39' 48"W, 482.39 feet continuing along said easterly right-of-way line of said
Independence Parkway and then along the southerly right-of-way line of State Highway No. 170
to a Texas Highway Department monument found;
Thence N 340 31' 06" E, 96.02 feet along said southerly right-of-way line to a Texas Highway
Department monument, the beginning of a non-tangent curve to the right;
Thence 886.55 feet along the arc of said curve to the right and along said southerly right-of-way
line, through a central angle of 140 51' 44", a radius of 3417.75 feet and a long chord of N 710
15' 51" E, 884.07 feet to the point of beginning and containing 767.969 square feet or 17.630
acres of land, more or less.
DEPICTION OF TARZ 103
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 01/25/22 M&C FILE NUMBER: M&C 22-0067
LOG NAME: 17EDTARIZ103
SUBJECT
(CD 7)Conduct Public Hearing and Adopt the Attached Ordinance Designating Tax Abatement Reinvestment Zone No. 103,City of Fort Worth,
Texas,for Property Located at 13840 Independence Parkway for the Development of a Manufacturing Facility for MP Magnetics LLC or an Affiliate
(PUBLIC HEARING-a.Report of City Staff: Kelly Baggett; b.Public Comment;c. Council Action:Close Public Hearing and Act on M&C)
RECOMMENDATION:
It is recommended that the City Council:
1. Conduct Public Hearing concerning the designation of Tax Abatement Reinvestment Zone No. 103,City of Fort Worth,Texas,for property
located at 13840 Independence Parkway for the development of a manufacturing facility for MP Magnetics LLC.,or an Affiliate;
2. Find that the intended improvements,which are set forth in more detail below,are feasible and practical and would be a benefit to the land to
be included in Tax Abatement Reinvestment Zone No. 103 and to the City after the expiration of any tax abatement agreements;and
3. Adopt the attached ordinance designating Tax Abatement Reinvestment Zone No. 103,City of Fort Worth,Texas, pursuant to and in
accordance with Chapter 312 of the Texas Tax Code.
DISCUSSION:
The proposed Tax Abatement Reinvestment Zone No. 103,City of Fort Worth,Texas(TARZ 103)is for the property located at 13840
Independence Parkway in Fort Worth,Texas(Property). A more detailed description of the Property is included as Exhibit A to the attached
ordinance. MP Magnetics LLC.,or an affiliate, (Company)is considering construction of approximately 200,000 square feet of new manufacturing
space on the Property to develop a manufacturing facility.The proposed project is anticipated to result in at least$100 million in real and business
personal property investment($40 million in construction costs and$60 million in business personal property that will be installed at the facilities),
along with the creation of at least 30 full-time jobs with a minimum salary of$80,390.00.
Designating this area as a reinvestment zone allows the City the option to enter into a tax abatement agreement with the Company to help facilitate
development within this area.
As required by Chapter 312 of the Texas Tax Code,a public hearing must be conducted regarding the creation or expansion of a Reinvestment
Zone. Notice of this hearing was delivered to the governing body of each affected taxing unit and published in a newspaper of general circulation
at least seven days prior to this hearing.
Pursuant to Chapter 312 of the Texas Tax Code,the area encompassing the proposed TARZ 103 meets the statutory criteria for designation as a
Tax Abatement Reinvestment Zone because the area is likely,as a result of the designation,to contribute to the retention or expansion of primary
employment or to attract major investment in TARZ 103 that would be a benefit to the Property and that would contribute to the economic
development of the City. Further,the proposed improvements and investments are feasible and practical and would be a benefit to the land to be
included in the TARZ 103 and to the City after the expiration of any tax abatement agreement.
The term of TARZ 103 will be five years from the date of adoption of the attached Ordinance and may be renewed for periods not to exceed five
years each unless otherwise allowed by law.
The proposed zone is located in COUNCIL DISTRICT 7.
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 approval of these recommendations will have no material effect on City funds.
Submitted for City Manager's Office by. Jay Chapa 5804
Originating Business Unit Head: Robert Sturns 2663
Additional Information Contact: Robert Sturns 2663 Kelly Baggett 2617