HomeMy WebLinkAboutContract 24539-A1 CITY SECRETARY
CONTRACT NO, ;YS 3c
FIRST AMENDMENT TO INTERLOCAL AGREEMENT
STATE OF TEXAS
COUNTIES OF DALLAS AND TARRANT
WHEREAS, the Dallas / Fort Worth International Airport Board, a joint board of the
Cities of Dallas, Texas, and Fort Worth, Texas (hereinafter "the Board"), the City of Dallas,
Texas (hereinafter "Dallas"), the City of Fort Worth, Texas (hereinafter"Fort Worth"), and the
City of Irving, Texas (hereinafter "Irving"), entered into an interlocal agreement in 1998
(hereinafter "the Agreement") for the sharing of "Increased Revenues" (as defined in the
Agreement) generated from that portion of Irving located within the geographical boundaries of
the Dallas/Fort Worth International Airport(hereinafter"the Property"); and
WHEREAS, Section III of the Agreement requires the consent of all the parties to the
Agreement for the creation of tax abatement agreements, Tax Increment Finance (TIF) districts,
Enterprise Zones, Public Improvement Zones or any similar type special incentive plans which
would impact any revenues due Dallas or Fort Worth under the Agreement, but the Agreement
does not specifically address the treatment of economic development grants authorized by Texas
Local Government Code, Chapter 380("380 Grants"); and
WHEREAS, Dallas, Fort Worth, Irving, and the Board(collectively, the"Parties") wish
to amend the Agreement to clarify that certain 380 Grants are included as special incentive plans
that will be exempted from Irving's revenue sharing obligation under the Agreement if approved
by all Parties and to address certain other administrative matters, all as more specifically set forth
in this First Amendment to Interlocal Agreement("Amendment");
NOW, THEREFORE, for and in consideration of the mutual consideration, terms, and
provisions contained herein, Dallas, Fort Worth, Irving, and the Board hereby further agree as
follows:
1. Section III of the Agreement is hereby amended to read as follows:
Irving agrees that, with respect to all or any portion of the Property or any
person, corporation, or entity using or occupying all or any portion of the
Property, it will not grant, enter into, or authorize any tax abatement agreements,
tax increment reinvestment zones (also known as "TIFs" or "TIRZs"), enterprise
zones, public improvement districts, or any other special incentive plan pursuant
to which (1) taxes that would be collected by Irving but, in accordance with state
law, are not required to be collected or (ii) taxes collected by Irving are, in
accordance with state law, required to be used for a specific purpose stipulated by
such law, unless all Parties agree in writing in advance to such plan, as evidenced
by duly adopted resolutions of the governing bodies of the parties hereto. If
Irving grants, enters into, or authorizes any economic development program grant
pursuant to Chapter 380 of the Texas Local Government Code with respect to all
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or any portion of the Property or any person, corporation, or entity using or
occupying all or any portion of the Property and the amount of any such grant is
based, in whole or in part, on the receipt of certain taxes that are included within
the definition of "Increased Revenues" under this Agreement, such taxes shall
nevertheless be payable to Dallas and Fort Worth in accordance with this
Agreement unless all Parties agree in writing in advance of Irving's authorization
of the grant to exempt such taxes from that obligation, as evidenced by duly
adopted resolutions of the governing bodies hereto. Irving also agrees to levy and
take all necessary action to collect all taxes, fees, etc., which would be applicable
against all properties, persons, individuals, and corporations affected by this
Agreement.
It is understood and agreed that the parties hereto have approved the following four (4)
economic development grant agreements to which Irving is a party. Accordingly, the amounts of
grants paid by Irving pursuant to those agreements shall continue to be exempt from the tax
sharing obligations of Section H of the Agreement to the extent that those grants are based on the
receipt of taxes that are included in the definition of"Increased Revenues" under the Agreement:
Company Date No. Date No. Date No.
Avian Services, 010825
Inc. Mar. 8,2001 3-8-01-119 Feb.28,2001 (concurrent Feb.27,2001 2710
resolution)
Network Jun.5,2003 6-5-03-196 Jun.25,2003 031929 Jul.8,2003 2972
Logistics,Inc.
Dallas
Cowboys May 6,2004 5-6-04-145 Jun.23,2004 042067 Jun.29,2004 3099
Merchandising,
Ltd.
DPF Trade
Center 1,L.P. May 26,2005 5-26-05-170 Jun.22,2005 051975 Jul. 19,2005 3237
(Amazon)
2. Because the pilot training/simulator facility owned and operated by FlightSafety
International Inc., is located on the Property, Section XIX of the Agreement is hereby deleted in
its entirety.
3. All terms and provisions of the Agreement that are not specifically amended herein shall
remain unchanged and in full force and effect.
4. All capitalized terms that are used but not defined herein shall have the definitions
ascribed to them in the Agreement.
5. This Amendment shall become effective on the last date as of which this Amendment has
been executed by Dallas, Fort Worth, Irving, and Board.
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EXECUTED on the dates set forth below:
THE CITY OF IRVING, TEXAS
B Y PP(� A roved as to form:
H bert A. Gears, Mayor
Date:
4 A.
Irving City o ey
THE CITY OF DALL EXAS
By: Approved as to form:
Mary S y Manager
Date:
Dallas Assistant City Atto y
/&4.mod. 09-0778
AIIIAIta 3-Zs-04
THE CITY OF FORT WORTH,TEXAS
By: ; -r-L' `-'-' Approved as to form:
Dale A. Fisseler, City Manager
Date: 31z4C�9
Fort Worth Assistaatity Attorney
C-/65UL�
DALLAS/FORT WORTH INTERNATIONAL AIRPORT BOARD
By: �� '��` Approved as to form:
1*r y P. fegan, Chief Executive Officer
Date: j (. a o ooPr i�-
,d,�o° °00�� DFW Airport General Counsel
0 0�
z�
Attested by °
*�
!y
Marty Hendri City Secretary/' 3 ___-_TI
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/24/2009 - Resolution No. 3720-03-2049
DATE: Tuesday, March 24, 2009 REFERENCE NO.: G-16504
LOG NAME: 171RVDFWILAAMEND
SUBJECT:
Authorize Execution of Amendment to Interlocal Agreement with D/FW Airport Board, the City of Dallas and
the City of Irving Regarding City of Irving Tax Revenue Sharing Obligations at D/FW Airport and Adopt
Related Resolution Approving Execution of Economic Incentive Agreement between City of Irving and
FlightSafety International, Inc.
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute an Amendment to the Interlocal Agreement between the Cities
of Fort Worth, Dallas and Irving and the D/FW Airport Board of Directors dated as of December 21, 1998,
to clarify that the parties may, by agreement of the parties, exempt certain economic development grants
made by Irving from Irving`s tax revenue sharing obligations under the Interlocal Agreement; and
2. Adopt the attached resolution approving execution of an Economic Incentive Agreement between the
City of Irving and FlightSafety International, Inc., related to an economic development project within
Irving`s corporate limits on D/FW International Airport property.
DISCUSSION:
On December 21, 1998, the City executed an Interlocal Agreement(Agreement) with the D/FW Airport
Board (the Board), the City of Dallas and the City of Irving. This Agreement provides that specified tax
revenues attributable to property located within Irving's corporate limits within the fence at D/FW Airport
(the Irving Airport Property) will be shared between the City of Irving (1/3) and the Cities of Fort Worth and
Dallas (2/3 collectively, with that amount divided between the City of Fort Worth [4111] and the City of
Dallas [7/11]). The Agreement prohibits the City of Irving from granting tax abatements or authorizing tax
increment reinvestments zones (TIFs), enterprise zones or other "similar incentives" that would exempt or
abate tax revenue that would otherwise be subject to the tax sharing obligations of the Agreement.
All parties to the Agreement wish to clarify through an amendment to the Agreement that economic
r!e Rol pr-,lent grants .;�'liht)n <{; by Chi�jptc- ?RJ ^,f thF.' Texas �n a Gnverr,r Fri! C,.,.;e ! Gr, ntsi riiay
-.3 �(, hc- �XF?r• ,.F?', r.,�.,1 't}rte •-fix c!, 3 a,q
31tles `r,, 3 Case r)y .ase. nas!S Tyi % ally RrJ Grants it:;.er,t.v Ze p'^e t r`IeCiS .1 hErF'
taxes are actually paid to the mun,cipality retaking the Grants but are paid from the rrunicipalrty's general
fund in an amount equal to certain actual tax receipts The proposed amendment provides that 80 Grants
will be treated in the same manner as incentives such as tax abatements or TIFs. where tax revenues
either are not collected or are lawfully diverted for a specific purpose per State law.
n c,a.,r �irti 'h,15 Ar'71P r•d rt�prlf Y c= ��a rt;cc Yl x.,P i-;p�n Lek c,;. •r,. .� r`�Pnt I.. � r�xc> ,tee
t-t�L Ilallll : l �llz�'l)t �� ll AAVEND 1'age I of ,
facility with at least 120 new jobs on the Irving Airport Property and, in return, Irving will pay FlightSafety
annual 380 Grants equal to a maximum of 45 percent of the new business personal property taxes
collected from the FlightSafety facility (the Irving Incentive Agreement). Any personal property tax
revenues used as the basis of any 380 Grant under the Irving Incentive Agreement would be exempted
from the tax sharing obligations of the interlocai Agreement.
The current Agreement also contains a provision that allows Irving to declare the Agreement null and void
if the original FlightSafety facility proposed in 1998 was not constructed. Because that facility was
constructed, the proposed amendment deletes that provision.
City staff recommends that the City Council authorize the City Manager to execute the proposed
Amendment to the Agreement, which is Exhibit "A" to the attached resolution and that the City Council
adopt the attached resolution approving the Irving Incentive Agreement, which is Exhibit "B" to the
resolution, subject to execution by all parties of the amendment to the Interlocal Agreement and approval
by all parties of the Irving Incentive Agreement.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on City
funds.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
CERTIFICATIONS:
Submitted for City Manager's Office by: Tom Higgins (6140)
Originating Department Head: Jay Chapa (6192)
Additional Information Contact: Mark Folden (8634)
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