HomeMy WebLinkAboutOrdinance 25536-06-2022 ORDINANCE NO. 25536-06-2022
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE FORT WORTH PUBLIC IMPROVEMENT
DISTRICT NO. 16-QUAIL VALLEY FUND, IN THE AMOUNT OF $135,421.00,
AUTHORIZING USE OF FUND BALANCE, FOR THE PURPOSE OF
REIMBURSING ELIGIBLE COSTS FOR WALSH RANCH/QUAIL VALLEY
PUBLIC IMPROVEMENT DISTRICT; 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$135,421.00,authorizing sue
of fund balance, for the purpose of reimbursing eligible costs for Walsh Ranch/Quail Valley Public
Improvement District.
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said prior ordinances and appropriations are hereby expressly repealed.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
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Jannette&Goodall(Ju 6,2022 09:47 CD
Tyler Wallach Jannette S.Goodall
Assistant City Attorney City Secretary
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ADOPTED AND EFFECTIVE:June 14,2022 ;
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 06/14/22 M&C FILE NUMBER: M&C 22-0459
LOG NAME: 17QUAIL VALLEYM/ALSH RANCH PID NO.16 DEV REIMBURSEMENT 6.21.22
SUBJECT
(CD 3)Adopt Attached Ordinance Increasing Appropriations in Fort Worth Public Improvement District No. 16-Quail Valley Fund(Walsh
Ranch)by$135,421.00,for the Purpose of Reimbursing the Developer for Eligible Costs Under Reimbursement Agreements
RECOMMENDATION:
It is recommended that the City Council adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Fort
Worth Public Improvement District No. 16-Quail Valley Fund in the amount of$135,421.00,authorizing use of fund balance,for the purpose of
reimbursing eligible costs for Walsh Ranch/Quail Valley Public Improvement District,with reimbursements in the amount of$73,495.63.00 under
the Improvement Area No. 1 Reimbursement Agreement and$61,924.50.00 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 Public Improvement District(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 March 15,2022 for the Improvement Area No.1 Reimbursement Agreement total$1,530,696.58,of which
$388,687.66 has been applied to reduce the original principal balance and$1,142,008.92 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
June reimbursement.
Quarterly payments made through March 15,2022 for the Improvement Area No.2 Reimbursement Agreement total$747,076.90,of which
$416,573.28 has been applied to reduce the original principal balance and$330,503.62 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
March reimbursement.
Per the terms of the Master Reimbursement Agreement for the Walsh Ranch/Quail Valley PID(City Secretary Contract No.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.To the extent bonds are issued and the
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.
Fort Worth Public Improvement District No.16(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 Economic Development Department has the responsibility of verifying the
availability of funds.
Submitted for City Manager's Office W. Reginald Zeno 8517
Originating Business Unit Head: Robert Sturns 2663
Additional Information Contact: Crystal Hinojosa 7808
Expedited