HomeMy WebLinkAboutResolution 5561-04-2022 A Resolution
NO. 5561-04-2022
AUTHORIZING AND EXPANDING FORT WORTH PUBLIC
IMPROVEMENT DISTRICT NO. 18 (TOURISM PID) TO INCLUDE AN
ADDITIONAL HOTEL AND TAKING CERTAIN OTHER ACTIONS
CONCERNING THE DISTRICT
WHEREAS, the Public Improvement District Assessment Act, Chapter 372 of
the Texas Local Government Code ("Act") allows for the establishment of public
improvement districts;
WHEREAS, on August 29, 2017, the City Council adopted Resolution No.
4837-08-2017, establishing Fort Worth Public Improvement District 18 — Tourism
("Tourism PID") ("Establishing Resolution");
WHEREAS, on August 18, 2020, April 13, 2021, and September 14, 2021, the
City Council adopted Resolution Nos. 5264-08-2020, 5382-04-2021, 5467-09-2021,
respectively, expanding the boundaries of the Tourism PID ("Tourism PID")
(Resolution Nos. 5264-08-2020, 5382-08-2021, and 5467-09-2021 are collectively
referred to as the "Expansion Resolutions");
WHEREAS, Section 372.0121 of the Act, as amended by the 87'h Texas
Legislature (2021) through Senate Bill 804, allows the City Council to include
additional properties in the Tourism PID if (i) the property is a hotel and (ii) a
sufficient number of the record owners of the real property currently included and
proposed to be included in the Tourism PID have consented to be included in the
Tourism PID by signing the original petition to establish the Tourism PID or by
signing a petition or written consent to include property in the Tourism PID;
WHEREAS, the number of consenting record owners is sufficient if (1) the
record owners own more than 60% of appraised value of taxable real property liable
for assessment in the Tourism PID; and either (i) constitute more than 60% of all
record owners of taxable real property liable for assessment in the Tourism PID, or
(ii) own, in aggregate, more than 60% of the area of all taxable real property liable
for assessment in the Tourism PID;
WHEREAS, another expansion petition ("Petition") was submitted to the City
of Fort Worth, Texas ("City"), pursuant to the Act, requesting to expand the Tourism
PID boundaries to include an additional hotel property within the Tourism PID and
has been on file in the office of the City Secretary for public inspection;
WHEREAS, pursuant to Section 372.009 of the Act, the City provided notice
and publication of two public hearings to be conducted on April 12, 2022 and April
26, 2022 to consider the expansion of the Tourism PID ("Public Hearings"), which
notice and publication included the following: (i) time and place of the Public
Hearings; (ii) general nature of the proposed improvements and services; (iii)
estimated costs of the improvements and services; (iv) expanded boundaries of the
Tourism PID; (v) proposed method of assessment; and (vi) proposed apportionment
of cost between the additional hotel property in Tourism PID and the City;
WHEREAS, notice of the Public Hearings was published on March 25, 2022
in the Fort Worth Star-Telegram, a newspaper of general circulation in the City, and
was also mailed on March 25, 2022 to all record owners of property in the Tourism
PID liable for assessment, and all persons desiring to be heard were given a full and
fair opportunity to be heard at the Public Hearing;
WHEREAS, the City Council conducted and adjourned the Public Hearing to
consider the expansion of the Tourism PID; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS:
1. Recitals.
The findings set forth in the recitals of this Resolution are found to be
true and correct.
2. Findings.
The City Council, after duty considering the evidence and testimony
presented at the Public Hearings and based on all information known by the
City Council, hereby makes the following findings:
2.1 Petition and Boundaries.
(a) The current boundaries of the Tourism PID consist of
noncontiguous areas authorized under Section 372.0035 of the Act
consisting solely of hotel properties with 100 or more rooms
ordinarily used for sleeping within the City of Fort Worth. The lists
of the original and additional hotels that are included within the
boundaries of the Tourism PID are included in the Establishing
Resolution and Expansion Resolutions, respectively.
(b) As set forth in the Recitals above, the Act allows the City Council
to include additional properties in the Tourism PID if the required
elements are satisfied. As evidenced below, the hotel property set
forth in Exhibit "A", which is attached hereto and incorporated
herein for all purposes ("Additional Hotel Property"), meets the
necessary elements for inclusion into the Tourism PID.
(i) The Additional Hotel Property to be included in the Tourism
PID as part of this Resolution is a hotel property.
(ii) A sufficient number of record owners of the real property
currently included and proposed to be included in the
Tourism PID have consented to be included in the Tourism
PID by signing the original petition to establish the Tourism
PID or by signing a petition or written consent to include
property in the Tourism PID. Specifically, the number of
consenting record owners exceeds the thresholds required by
the Act, which is evidenced by the following: (1) 79.93% of
appraised value of taxable real property liable for
assessment, (2) 64.91% of record owners of taxable real
property liable for assessment, and (3) 67.60% for the area
of all taxable real property liable for assessment.
2.2 Advisability and Feasibility of the Improvements and Services
Proposed for the Tourism PID. It is advisable to expand the Tourism
PID to include the Additional Hotel Property to provide the proposed
improvements and services described in the Petition and this Resolution.
The improvements and services will promote the interests of the City
and confer a special benefit on the assessed properties within the
Tourism PID. The Fort Worth Convention and Visitor's Bureau staff
performed an analysis of the Tourism PID, its service plan and
strategies, and concluded that it provides a very effective means for
significantly enhancing the ability of Fort Worth to promote its hotel,
convention, and tourism activity, which has been borne out since the
Tourism PID's establishment. Based on this analysis and the successful
history of the Tourism PID, the City finds the proposed tourism public
improvement district to be both advisable and feasible.
2.3 Nature of the Improvements and Services. The general nature
of the proposed improvements and services to be provided within the
expanded boundaries of Tourism PID include, without limitation,
marketing, business recruitment, and promotional activities authorized
by the Act for improvements and promotion of the Tourism PID,
including, but not limited to, the provision of incentives by the Fort
Worth Convention and Visitors Bureau to organizations to encourage
them to bring large and city-wide events (including, without limitation,
meetings, sporting, recreation, and cultural events) to Fort Worth and to
fund additional marketing by the Fort Worth Convention and Visitors
Bureau to increase hotel stays within the City.
2.4 Estimated Cost of the Improvements and Services. Over the
six (6) year period beginning on October 1, 2021 and ending on the
expiration of the Tourism PID as provided in Section 3, the estimated
total cost of the improvements and services to be provided by the
Tourism PID will be $27,737,196.00, which includes an estimated cost
of $3,950,000.00 for the 2021-2022 fiscal year.
For the 2021-2022 fiscal year, the estimated costs of the above-referenced
improvements and services, and estimated costs to implement such improvements
and services are:
Incentives and Sales Efforts $1,850,125
Marketing and Research
(Promotion/Advertising) $1,363,250
Site Visits &Familiarization Tours $ 194,750
Cultural Enhancements through
Marketing and Promotion of the Arts $292,125
Operations and Administration $194,750
City Administrative Fee $55,000
Total $3,950,000
On September,21,2022,the City Council adopted the fiscal 2021-2022 budget and
six-year service plan,the same being Ordinance No.25089-09-2021. The inclusion
of the Additional Hotel Property will not affect the adopted budget. Such costs will
be paid from assessments levied in accordance with the Act. The six-year service
plan proposed for the Tourism PID is attached hereto as "Exhibit B" ("Service
Plan") and incorporated herein for all purposes. The Service Plan, budget, and
assessment amount are subject to annual review and approval by the City Council.
2.5. Method of Assessment. The costs of the improvements and services will
be funded from assessments levied on and collected from properties located in the
Tourism PID that contain hotels of one hundred(100)or more guest rooms and that
are subject to payment of City hotel occupancy taxes pursuant to Chapter 32,
Article II of the City Code, as amended. The City will levy a special assessment
against the new hotel property located within the expanded boundaries of the
Tourism PID ("Hotel Parcel") in an amount equal to two percent (2%) of the
consideration received for occupancy of any sleeping rooms furnished by the new
hotel on the Hotel Parcel (subject to any lawful exemption of the hotel occupancy
tax under applicable state law and City ordinances), with such assessments to 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, as amended. The collection of assessments will
begin on the earliest date allowed by the Act and continue to be collected at the
same time hotel occupancy taxes are collected. The City Council hereby finds that
the proposed method of assessment is reasonable and necessary.
3.6. Apportionment of Costs Between the Tourism PID and the City, as a
Whole. The apportionment of costs between the Tourism PID, inclusive of the
Additional Hotel Property, and the City, as a whole, is as follows:
(a) The entire cost of each improvement and service will be paid from
assessments levied in accordance with the Act.
(b) No City funds will be used to pay any portion of the cost of any
improvement or service, unless such funding is approved from the City
Council or other appropriate municipal authority on a case-by-case basis.
3. Inclusion of Additional Hotel Property within the Tourism PID; Term.
Based on the findings set forth above,the City Council authorizes the expansion of
the boundaries of the Tourism PID to include the Additional Hotel Property. The inclusion
of the Additional Hotel Property within the Tourism PID takes effect on the date on which
this Resolution is adopted by the City Council and will expire concurrently with the
expiration date set forth in Section 3 of the Establishing Resolution. The expansion of the
Tourism PID is subject to all conditions, limitations, and reservations set forth in the
findings in Sections 1 and 2. All other provisions of this Resolution will be effective from
and after adoption of this Resolution.
4. Advisory Body.
The City Council hereby declines to appoint an advisory body for the expanded
Tourism PID boundaries pursuant to Section 372.008 of the Act. The City Council hereby
reserves the right to assign responsibility for preparation of the ongoing service plan for
the PID to another entity in the absence of such an advisory body, as authorized by Section
372.013(a) of the Act.
ADOPTED this 26th day of April 2022.
y}}.
ATTEST:
)Jnette S. Goodall
y Secretary .....•
s
EXHIBIT A
Expanded Boundaries of the Tourism PID
(Additional Hotel Property)
Account Name Address City, State, Zip RMS
Four Points by Sheraton Hotel 6828 North Freeway Fort Worth, TX 113
76137
EXHIBIT B
Service Plan
City o7 Fart Worth
Six Year Smvke Plan
Public Improvement Dlgrict No.18-Tounam
FY21/22 FY22a3 FY2124 FY2425 FY2526 FY26727
REVENUES
PID Aeae6SMOM $ 31950,000 $ 4,345,000 $ 4,562 250 $ 4,790,363 $4,958.026 $ 5,131,557
TOW Funds Avatkd*for Use S 3AW,006 S 4,345,000 S 4,M2250 S 4,790,763 S 4,956,026 S 5,13%557
EXPENSES
Incentives tit Saks Efforts $ 1,850,125 $ 2,037,750 $ 2,140,944 $ 2249,297 $ 2,328,937 $ 2,411,355
Marketing and Research(Promotion/
Advertising) 1,W3,250 1,501,SW 1,577$M 1,657,3T7 1,716.059 1,776,725
Site Visit tit Fanuianzation Tours 194,750 214,5W 225,363 238,768 245,151 253,828
Cultural EMrrtements through
Marketing and promotion of the Arts 292,125 321,750 338,044 355,152 367,777 380,742
Ceperatiorts&Adm mskation 194,750 214,5W 225.361 236,769 245,152 253,827
City Admix istrative Fee 55,000 55,000 55,000 55,000 55,000 55,000
Total Budgeted Expenses f 3,950,000 f 4,]45,000 f 4-42250 f 4,790,763 f 4,956,026 f 5,131,557
CarObAm to Fund Balance _ _ _ _
Total Expenses 3 31950,000 f 4,345,000 f 41562250 f 4,790,363 f 4,666,626 f -1,131,567
Not Clwtge in Fund Balance f - f - f - $ -
RM Bab",BOOTMV of Year Ea6mand 2,834,045 $831,045 2,834,045 2,834,W1 Z&W,045 2,834,041
Esfxna%d Fund Bahrres,End of Year 2,834,045 2,834,045 2,834,045 2,834,045 2,834,045 2,834,045
Reserve Regjrsment 724,312 760,527 798,554 826,W3 M,431 8%.431
0-(Under(Res w S 2,109,733 f 2,073,518 f 2,035A91 f 2,007,542 f 1,978,614 f 1,978,614
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 04/26/22 M&C FILE NUMBER: M&C 22-0306
LOG NAME: 17PID18 MIDYEARAMENDFY22
SUBJECT
(ALL)Conduct Public Benefit Hearing Concerning the Following Matters Related to Fort Worth Public Improvement District No. 18—Tourism
(Tourism PID): (1)Expansion of the Tourism Public Improvment District to Include One Additional Hotel, and (2)the 2021-2022 Assessment for the
Additional Hotel Property;Adopt the Attached Resolution Authorizing and Expanding the Tourism PID to Include One Additional Hotel Property;
Approve Attached Revised 2021-2022 Assessment Roll; and Adopt Attached Ordinance Levying Special Assessments on the Additional Hotel
Property for Fiscal Year 2021-2022
(PUBLIC HEARING-a. Report of City Staff: Crystal Hinojosa; b. Citizen Presentations;c. Council Action:Close Public Hearing and Act on M&C)
RECOMMENDATION:
It is recommended that the City Council:
1. Conduct Public Benefit Hearing Concerning the following matters related to Fort Worth Public Improvement District No. 18—Tourism
(Tourism PID): (1)Expansion of the Tourism Public Improvement District to include one additional hotel property,and(2)the 2021-2022
Assessment for the additional hotel;
2. Adopt the attached Resolution(i)making certain findings concerning the nature and advisability of the special improvements and services to
be provided for the benefit of the additional hotel to be included in the Tourism PID,the estimated costs of such improvements and services,
the method of assessment,the boundaries of the Tourism PID,and the apportionment of costs between the Tourism PID and the City, as a
whole;and(ii)authorizing and expanding the Tourism PID to include one additional hotel;
3. Approve the attached, revised 2021-2022 assessment roll.
4. Adopt the attached ordinance levying special assessments on the additional hotel property for Fiscal Year 2021-2022;
5. Direct the City Secretary to record a copy of the Assessment Ordinance in the real property records of the appropriate county no later than
the seventh(7th)day after adoption by the City Council.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C)is to conduct a second public hearing concerning the expansion of Fort Worth
Public Improvement District 18-Tourism(Tourism PID)to include one additional hotel property and the 2021-2022 assessment for the additional
hotel property,along with certain actions related thereto. The City Council conducted the first public hearing on April 12,2022,finding that the
Petition to Expand the Tourism PID met the requirements set forth in Chapter 372 of the Texas Local Government Code("Code"),approving the
filling of the revised 2021-2022 assessment roll,and setting this public hearing.
On August 29,2017,the City Council adopted Resolution No.4837-08-2017,establishing the Tourism PID(Establishing Resolution).The City
Council subsequently adopted Resolution Nos.5264-08-2020(August 18,2020), 5382-04-2021 (April 13,2021), and 5467-09-2021 (September
14,2021),and April 12,2022(M&C 17ED PID18EXPANDTPID).
EXPANSION OF THE TOURISM PID
Boundaries:
The current boundaries of the Tourism PID consist of noncontiguous areas authorized under Section 372.0035 of the Texas Local Government
Code(Code)consisting solely of hotel properties with 100 or more rooms ordinarily used for sleeping within the City of Fort Worth.A list of
the hotels that are included within the boundaries of the Tourism PID is included in the Original and Expansion Resolutions,copies of which are
attached to this M&C within the Petition.
Senate Bill 804,87th Texas Legislature(2021),which went into effect on June 14,2021,revised Section 372.0121 of the Code to clarify the ability
of cities to add new hotels into an existing Tourism PID. One of the new provisions affects the way in which the City calculates(or recalculates)the
percentage threshold for adding new hotels into the Tourism PID. SB 804 requires the City to update and recalculate each of the percentage
thresholds set forth below every time a new hotel property is added to the Tourism PID. Conversely,the prior version of Section 372.0121 only
required the City to calculate the impact that the new hotel property had on the pre-existing thresholds. For example, under SB 804,the City has to
update and recalculate the appraised value of each and every existing property in the Tourism PID each time that a new hotel is added;whereas,
under the prior legislation,the City simply carried forward the values of the existing hotel properties from the year the hotel properties entered into
the Tourism PID.
Section 372.0121 of the Code allows the City Council to include additional properties in the Tourism PID if(i)the property is a hotel and(ii)a
sufficient number of the record owners of the real property currently included and proposed to be included in the Tourism PID have consented to be
included in the Tourism PID by signing the original petition to establish the district or by signing a petition or written consent to include property in
the Tourism PD. The number of consenting record owners is sufficient if(1)the record owners own more than 60%of appraised value of taxable
real property liable for assessment in the Tourism PID;and either(i)constitute more than 60%of all record owners of taxable real property liable
for assessment in the Tourism PID,or(ii)own,in aggregates,more than 60%of the are of all taxable real property liable for assessment in the
Tourism PID.If the addition of the new property results in these numbers dropping at or below the 60%threshold,then the property may not be
added.
Inclusion of the Four Points by Sheraton Hotel,located at 6828 North Freeway, Fort Worth,Texas 76137(Four Points)meets the above-stated
elements and,therefore,may be considered by the City Council for inclusion into the Tourism PID.
First,the Four Points is a hotel property.
With regard to the second element,the property owner,or its duly authorized representative,for the new hotel property,has signed a petition
requesting inclusion within the Tourism PID.This results in an increase to 79.93%of the appraised value of taxable real property liable for
assessment,67.60%for the area of all taxable real property liable for assessment,and 64.91%of record owners liable for assessment. Because
the percentages are still above the 60.00\%threshold, inclusion of the Four Points the property meet the second element.
Nature of the Improvements:
The goals of the Tourism PID focus on increasing the economic impact and enhancing competitiveness in conventions,meetings,leisure and
sports tourism and increasing tourism-related economic activity at all times,including during economic downturns and as inventory grows.The
Tourism PID projects include incentives and sales efforts,convention and sports marketing and promotion,site visits and familiarization tours,
community arts grants,convention services,event funding application,operations,research,and administration,all of which benefit the hotels
within the Tourism PID.
Method of Assessment and Apportionment of Costs:
The assessment rate will be an amount equal to 2.00%of the consideration received from the occupancy of any sleeping room furnished by a hotel
located within the Tourism PID,with such assessment to be collected in the same manner and in accordance with the same procedures as those
established for the collection of the City's Hotel Occupancy Tax,as set forth in Chapter 32,Article II of the City Code,as amended.The entire costs
of each improvement and service will be paid from the above-stated assessments and no City funds will be used to pay any portion of such costs
unless such funding is approved by the City Council on a case-by-case basis.
Costs of the Improvements and Services:
The total costs for the adopted services and improvements for the life of the Tourism PID(approximately six years)will be$27,737,196.00,which
includes an estimated cost of$3,950,000.00 for the Fiscal Year 2021-2022 budget. Assessments for this fiscal year began on October 1,2021.
Advisability:
Staff recommends that the City Council find that these improvements and services are advisable because they will promote the interests of the City
and confer a special benefit on the assessed properties within the expanded boundary of the Tourism PID.
Staff recommendation:
Staff recommends that City Council adopt the attached resolution authorizing and expanding the Tourism PID to include the above-state
one additional hotel property,along with the corresponding assessment ordinance.
A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION I 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: Reginald Zeno 8517
Originating Business Unit Head: Robert Sturns 2663
Additional Information Contact: Crystal Hinojosa 7808
Expedited