HomeMy WebLinkAboutOrdinance 25349-03-2022 ORDINANCE NO. 25349-03-2022
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE FORT WORTH PUBLIC IMPROVEMENT
DISTRICT NO. 16 - QUAIL VALLEY FUND IN THE AMOUNT OF $216,623.00,
AND REDUCING FUND BALANCE, FOR THE PURPOSE OF REIMBURSING
ELIGIBLE COSTS FOR WALSH RANCH/QUAIL VALLEY PUBLIC
IMPROVEMENT DISTRICT 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$216,623.00,and reduced
fund balance, for the purpose of reimbursing eligible costs for Walsh Ranch/Quail Valley Public
Improvement District, with reimbursements in the amount of$101,737.00 under the Improvement Area
No. 1 Reimbursement Agreement and $114,886.00 under the Improvement Area No. 2 Reimbursement
Agreement.
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 jurisdiction,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 shall
be 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 of
said prior ordinances and appropriations are hereby expressly repealed.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
;#fiette S.Gaodall(Mar 10,2022 1WC5T)
Denis McElroy Jannette S.Goodall
Sr.Assistant City Attorney City Secretary FORTx.
ADOPTED AND EFFECTIVE:March 8,2022
s
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 03/08/22 M&C FILE NUMBER: M&C 22-0145
LOG NAME: 13QUAIL VALLEY/WALSH RANCH PID NO.16 DEV REIMBURSEMENT 3.15.22
SUBJECT
(CD 3)Adopt Attached Ordinance Increasing Appropriations in Fort Worth Public Improvement District No. 16-Quail Valley Fund(Walsh
Ranch)by$216,623.00,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 in the amount of$216,623.00,and reducing fund balance,for the purpose of reimbursing eligible
costs for Walsh Ranch/Quail Valley Public Improvement District,with reimbursements in the amount of$101,737.00 under the Improvement Area
No. 1 Reimbursement Agreement and$114,886.00 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-Quail Valley Fund(Walsh Ranch)(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 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 FWPID#16.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 reimbursements 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 second 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 December 15,2021 for the Improvement Area No.1 Reimbursement Agreement total$1,429,014.00,of which
$372,740.46 has been applied to reduce the original principal balance and$1,056,273.53 was applied towards interest earned. The original
Improvement Area No.1 balance was$6,350,000.00,of which$5,961,312.34 will remain outstanding following the application of the March
reimbursement.
Quarterly payments made through December 15,2021 for the Improvement Area No.2 Reimbursement Agreement total$632,191.07,of which
$374,239.75 has been applied to reduce the original principal balance and$257,951.32 was applied towards interest earned. The original
Improvement Area No.2 balance was$5,850,000.00,of which$5,433,426.72 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 FWPID#16 were met-it would consider issuing revenue bonds secured by and funded
out of FWPID#16 assessment revenues to accelerate reimbursement to the developers. It is anticipated revenue bonds for Improvement Area
No.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 No. 1,incremental repayments from FWPID#16 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.
Funding is available for appropriation in the fund balance of the FWPID#16-Quail Valley Fund.Currently,the fund balance is$1,023,857.87,and
after the appropriation the balance will be$807,234.87.
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. Reginald Zeno 8517
Originating Business Unit Head: Reginald Zeno 8517
Additional Information Contact: Anthony Rousseau 8338