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HomeMy WebLinkAboutContract 25190 CITY SECRET OY GQNTRACT N o�5 � STATE OF TEXAS § COUNTY OF TARRANT § TAX INCREMENT REINVESTMENT ZONE PARTICIPATION AGREEMENT For CITY OF FORT WORTH TAX INCREMENT REINVESTMENT ZONE NUMBER FOUR Between CITY OF FORT WORTH AND FORT WORTH I.S.D. THIS TAX INCREMENT REINVESTMENT ZONE PARTICIPATION AGREEMENT (this "Agreement") is made by and between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation located in Tarrant and Denton Counties, Texas, acting by and through its governing body, the City Council, and its duly authorized City Manager, and the FORT WORTH INDEPENDENT SCHOOL DISTRICT (the "District"), acting by and through its governing body, the Board of Trustees. WITNESSETH: WHEREAS, on November 25, 1997, the City of Fort Worth City Council approved Ordinance No.,13259, establishing Tax Increment Reinvestment Zone Number Four, City of Fort Worth, Texas (the "TIF Zone"), in accordance with the Tax Increment Financing Act, Texas Tax Code, Chapter 311 (the "Act"), to promote development and redevelopment in the south side medical district area of the City of Fort Worth through the use of tax increment financing; and WHEREAS, the City and the District wish to enter into this Agreement defining the terms and conditions under which the District will contribute a portion of its tax increment to the TIF Zone Tax Increment Fund, as hereinafter defined; NOW THEREFORE, the City and the District, in consideration of the terms and conditions and covenants contained herein, hereby agree as follows: ARTICLE I. DEFINITIONS; GENERAL PROVISIONS Section 1.1. Definitions. (a) As used in this Agreement, the following terms shall have the meanings set out below: "Act" means Chapter 311, Texas Tax Code, as amended. 9-KC AL RECOQD "Agreement" means this Tax Increment Reinvestment Zone Participation Agreement between the City and the District. "Agreement Term" shall have the meaning given to such term in Article V of this Agreement. "Applicable District Law" means, collectively, (i) the Act as applicable to the District as a "taxing unit" under the Act, (ii) the Constitution and general laws of the State applicable to the independent school districts of the State, including specifically, but not limited to, Section 403.302, Texas Government Code, and (iii) the applicable rules and regulations of the agencies of the State having jurisdiction over any matters relating the public school systems and school districts of the State. "Board" or "Zone Board" means the duly appointed board of directors of City of Fort Worth Tax Increment Reinvestment Zone Number Four. "Captured Appraised Value" means the total appraised value of real property in the TIF District that is located in the District, as of January 1 of any year, less the Tax Increment Base of the TIF District allocable to the District, as defined herein and contemplated in the Act. "C4" means the City of Fort Worth, Texas,together with its successors and assigns. "District" means the Fort Worth Independent School District, together with its successors and assigns: "District Bonds" means the bonds issued by the District for the purpose of paying the Project Costs incurred by the District in constructing and equipping the Educational Facilities Projects. "Educational Facilities Projects" means the Fort Worth Independent School District educational facilities identified in the Plans, which may include elementary school, middle school and high school facilities, to be provided by the District as public free schools and to be constructed, equipped, and located within the TIF Zone in accordance with plans and specifications developed and implemented solely by the District. "Educational Facilities Project Costs" . means the Project Costs of or attributable to the Educational Facilities Projects, including any direct costs of the Educational Facilities, the principal of and interest on District Bonds and maintenance and operation costs of the Educational Facilities (excluding teacher's salaries, administrative costs and other salary costs not related to the maintenance, repair and upkeep of the Educational Facilities), or reimbursement thereof, in the amount described in Section 3.2. "Financing Plan" meads the financing plan prepared by the Board, as defined herein, and approved by the City Council in confonnity with the requirements of Section 311.011 of the Act, and as the same may be amended from time in accordance with the Act and this Agreement. "Other Project Costs" shall mean those Project Costs as set forth in the Plans other than Educational Facilities Project Costs. 2 "Plans" means, collectively,the Project Plan and the Financing Plan. "Project Costs" means any and all of the items of "project costs" set forth and described in Section 311.002(1) and other provisions of the Act. "Project Plan" means the project plan prepared by the Board, as defined herein, and approved by the City Council in conformity with the requirements of Section 311.011 of the Zone Act, as the same may be amended from time to time in accordance with the Act. "State" means the State of Texas. "Tax Increment" means the total amount of property taxes levied and collected by a Taxing Unit for the year on the Captured Appraised Value of taxable property located in the TIF Zone. "Tax Increment Base" means the total appraised value of all real property located in the TIF Zone that is located in and taxable by the District as of January 1, 1997, the year in which the TIF Zone was designated as a reinvestment zone, plus the total appraised value of all real property taxable by the District and annexed to the TIF Zone determined as of January 1 of the year in which the area was annexed to the TIF Zone. "Tax Increment Fund" shall mean a fund consisting of all the Tax Increment deposits, all revenues from the sale of tax increment bonds or notes, revenues from the sale of any property acquired as part of the Plans, and other revenues to be used in the development or redevelopment of the TIF Zone. "Tax Increment Payments" means, unless the context indicates otherwise, the payments to be made hereunder by the District into the Tax Increment Fund for the TIF Zone. "TIF Creation Ordinance" shall mean City Council Ordinance 13259, adopted by the Fort Worth City Council on November 25, 1997. "TIF Zone" shall mean Tax Increment Reinvestment Zone Number Four, City of Fort Worth, Texas, established by the City Council Ordinance 13259, on November 25, 1997, a copy of which ordinance is attached hereto and marked Exhibit "A". (b) Terms used herein and not otherwise defined shall have the meanings ascribed to them in the Act. Section 1.2. General Provisions. (a) The City and the Zone Board, by the City's execution of this Agreement, do not assume, agree to pay, or guarantee the payment of any bond, note, or other financial obligation or undertalcing of the District, whether in the form of securities or in other contractual forms, including District Bonds. 3 (b) The City hereby dedicates a portion of the Tax Increment Payments, in an amount not exceeding that set forth in Section 3.2 of this Agreement, for the purpose of reimbursing and paying to the District all or a portion of the Educational Facilities Project Costs. The remainder of the Tax Increment Payments are hereby dedicated to payment of other Project Costs under the Plans and the provisions of the Act. The parties hereto agree that such amounts are dedicated for such purposes in compliance with and in satisfaction of the requirements of Section 311.014(b) of the Act. (c) The boundaries of the TIF Zone are those boundaries described in the Zone Creation Ordinance. (d) The parties agree that any funds which are paid to the District pursuant to Section 3.2 of this Agreement which have not, in the year of receipt, been expended for Educational Facilities Project Costs may be retained by the District in a separate reserve account maintained by the District for such purposes. Such firnds may be budgeted and expended in any subsequent year following receipt for such purposes as are set forth in Section 3.1 of this Agreement. ARTICLE II. PARTICIPATION IN THE ZONE; PAYMENTS; ADJUSTMENTS; AND RETENTIONS -- - Section 2.1. Participation in the Zone. (a) The District agrees to participate in the TIF Zone and to make Tax Increment Payments to the Tax Increment Fund in annual amounts calculated in accordance with this Section for the purpose of paying a portion of the Project Costs under the Plans. (b) Subject to the adjustments and retentions that may be required pursuant to the succeeding subsections of this Section, the District agrees to pay into the Tax Increment Fund an amount equal to 100% of the District's total tax rate levied, assessed and collected annually by the District on the Captured Appraised Value. (c) If as a result of the application of or a change in Applicable District Law, or for any other reason, whereby because of its participation in the TIF Zone under this Agreement the District will either (i) receive less State funding, or (ii) be required to increase its payments of funds to the State, the District shall have the right at its option to retain, from the amount of the payments agreed to be made under subsection (b) of this Section, the amount that is necessary to offset any negative financial impact on the District resulting from its participation in the TIF Zone. (d) Each fiscal year, the District shall calculate the amount necessary to offset such negative impact, if any, and shall deduct such amount from the amount of the Tax Increment Payments required to be made under subsection (b) of this Section. Each such calculation shall take into account any adjustments to the amount calculated for the previous fiscal year that should be made in order to reflect the actual impact on the District for such previous fiscal year. The resulting amount each year shall constitute the "Tax Increment Payment" for such year in 4 accordance with Section 311.012 of the Act and shall be made to the Tax Increment Fund. For each year the District invokes subsection (c) of this Section to reduce the amounts otherwise to be deposited to the Tax Increment Fund, the District shall serve written notice on the City and the Zone Board of such invocation and the calculations of the adjusted amount on or before the date of the Tax Increment Payment. (e) The payment of the Tax Increment Payments, in the amounts calculated and adjusted in accordance with this Section, shall commence during the calendar year 2000 in accordance with the Plans and the Act and shall continue until the termination of this Agreement in accordance with the provisions of Section 5.1 of this Agreement. Section 2.2. Expansion of Reinvestment Zone Number Four. The District's participation shall not extend to the Tax Increment on any additional property added to the TIF Zone by the City after the date of this Agreement unless the District approves the participation. Section 2.3. Zone Board of Directors. The District shall have the right to appoint one (1) member to and maintain such member on the Zone Board, in accordance with the Act. ARTICLE III PROVIDING THE EDUCATIONAL FACILITIES PROJECTS AND PAYMENT OF EDUCATIONAL FACILITIES PROJECT COSTS AND OTHER PROJECT COSTS Section 3.1. Constructing,, Equipping and Financing of Educational Facilities Projects. (a) The City agrees, as a precondition to any obligations of the District hereunder, to include the Educational Facilities Projects as projects in the Project Plan and the Financing Plan in form and substance approved by the Superintendent of Schools of the District. The final description, size, scope, and design of the Educational Facilities Projects shall be solely as determined by the District. (b) The District agrees to commence and complete the construction and equipment of the Educational Facilities Projects in accordance with the timing contemplated in the Plans. (c) The District agrees to use the proceeds of the payments defined tinder Section 3.2 of this Agreement solely for the purpose of paying Project Costs, as defined by the Act, related to Educational Facilities Projects, including, without limitation, consultant's fees and other costs and expenses of the District incurred in connection with the execution and delivery of this Agreement. (d) At the written request of the Zone Board, the District shall make information available to the Zone Board on the use of funds received hereunder for the Educational Facilities Project Costs. The District shall make an annual report or presentation to the Zone Board at a meeting of the Zone Board on the use and prospective use of the funds received hereunder for Educational Facilities Projects Costs. 5 Section 3.2. Payment and Use of Educational Facilities Project Costs. (a) The City agrees that it will pay, or cause the Zone Board to pay, to the District, from the Tax Increment Fund, an annual amount equal to 50% of the Tax Increment Payments deposited into the Tax Increment Fund for that year by the District, for the purpose of paying all or a portion of the Educational Facilities Project Costs. If the District contributes no payments to the Tax Increment Fund, it shall be entitled to no payment from the Tax Increment Fund. (b) The amounts dedicated and required to be paid pursuant to subsection (a) of this Section shall be paid to the District within 60 days of deposit of Tax Increment Payments by participating taxing units into the Tax Increment Fund by wire transfers for the District's account to the banking institution holding the District's debt service fund created for the payment and security of the District Bonds or general fund, as applicable, accompanied by instructions with respect to the deposit of such amounts into such funds, with notice of any such transfer to be given to the District. (c) The payment of the amounts required to be paid to the District under subsection (a) of this Section shall continue until the termination of this Agreement in accordance with Section 5.1 of this Agreement. (d) To the extent necessary under applicable law, the City and the District shall enter into a mutually acceptable interlocal agreement for the joint use of educational facilities ftmded hereunder in accordance with the Act. (e) The amounts deposited by the District into the Tax Increment Fund hereunder which are not paid to the District for Educational Facilities Project Costs shall be used for Other Project Costs of the TIF Zone in accordance with the Plans or as otherwise authorized by the Act. ARTICLE IV OBLIGATIONS OF CITY AND REINVESTMENT ZONE NUMBER FOUR ZONE Section 4.1. Financing of Project Costs. The District shall participate in the payment of Project Costs only to the extent described in this Agreement. The City and the Board shall be entitled to enter into any other agreements to pay Project Costs, principal and interest on bonds, and other obligations from the tax increments paid into the Tax Increment Fund without the consent of the District. The City and the TIF Zone reserve the right to impose yield restrictions and enter into covenants with the holders of bonds and notes of the City and/or the TIF Zone with respect to the investment and reinvestment of funds received from the District's participation if, in the opinion of nationally recognized bond counsel, such action is necessary to avoid the classification of such bonds and notes as "arbitrage bonds" under the provisions of the Internal Revenue Code of 1986 as amended to the date of this Agreement. 6 ARTICLE V TERM AND TERMINATION Section 5.1. Agreement Term. This Agreement shall become effective as of the date of the final signature hereto, and shall remain in effect until the earlier to occur of the following: (a) the date on which the Plans have been fully implemented and all Project Costs, tax increment bonds, interest on such tax increment bonds and all other obligations, contractual or otherwise, of the City or TIF Zone payable from tax increment collected on the Captured Appraised Value of the property within the TIF Zone have been paid in full; or (b) the termination date for the TIF Zone as set forth in the Zone Creation Ordinance, without respect to any amendments to the Zone Creation Ordinance; or (c) an earlier termination date designated by an ordinance subsequent to the Zone Creation Ordinance; (d) on the date on which the aggregate amount of funds deposited to the Tax Increment Fund by all taxing units participating in the TIF Zone equals $60,000,000. Section 5.2. Notwithstanding anything herein to the contrary, this Agreement shall be null and void if not approved and executed by both the District and the City by August 31, 1999. ARTICLE VI. MISCELLANEOUS Section 6.1. Severability. Except as provided in this subsection, in the event any tern, covenant or condition herein contained shall be held to be invalid by any court of competent jurisdiction, such invalidity shall not affect any other term, covenant or condition herein contained, provided that such invalidity does not materially prejudice either the District or the City with regard to the rights and obligations of each contained in the valid terns, covenants or conditions hereof. In the event that any term, covenant or condition shall be held invalid and affects in any manner the limitations on the District's contributions or participation as described in Section 2.1(c), then this Agreement shall be voidable by the District and the District shall have no further liability for any incremental or other payments as may otherwise be provided in this Agreement, nor shall the District have any right to receive further payments from the Tax Increment Fund. Section 6.2. Entire Agreement. This Agreement embodies the entire agreement and lmderstanding between the parties and supersedes all other agreements and understandings between the parties relating to the subject matter hereof. This Agreement represents the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties. 7 Section 6.3. Written Amendment. This Agreement may be amended only by written instrument duly executed on behalf of each party. Section 6.4. Notices. All notices required or permitted hereunder shall be in writing and shall be deemed delivered when actually received or, if earlier, on the third (3rd) day following deposit in a United States Postal Service post office or receptacle with proper postage affixed (certified mail, return receipt requested) addressed to the respective other part at the address set forth below or at such other address as the receiving party may have theretofore prescribed by notice to the sending party. cfty Fort Worth Independent School District City Manager Superintendent of Schools City of Fort Worth Fort Worth Independent School District 1000 Throckmorton Street 100 North University Drive Fort Worth, Texas 76102 Fort Worth, Texas 76107 Section 6.5. Nonwaiver. Failure of any party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies accruing hereunder upon default or failure of performance shall not be considered a waiver of the right to insist on, and to enforce by any appropriate remedy, strict compliance with any other obligation hereunder or to exercise any right or remedy occurring as a result of any future default or failure of performance. Section 6.6. Assignment. Except for the City's right to assign and delegate this Agreement and the performance of obligations to the Board, no party shall assign this Agreement at law or otherwise without the prior written consent of the other party and no party shall delegate any portion of its performance under this Agreement without the written consent of the other party. Section 6.7. Successors. This Agreement shall bind and benefit the parties and their legal successors. This Agreement does not create any personal liability on the part of any director, officer, agent, or employee of the City, or the TIF Zone or the Zone Board, or any trustee, officer, agent, or employee of the District. Section 6.8. No Waiver of Immunity. No party hereto waives or relinquishes any immunity or defense on behalf of itself, its trustees, officers, employees, and agents as a result of its execution of this Agreement and performance of the covenants contained herein. Section 6.9. Governing Law. This Agreement shall be governed by and shall be construed in accordance with the laws of the State of Texas. Section 6.10. Amendment to Plans. No amendments to the Plans shall be effective until the same are approved and accepted by the District. 8 EXECUTED on this 31 s� day of &I 'V54- ' 1999 APPROVED AS TO CITY 07F FORT ORT EXAS, FORM AND LEGALITY: By:—Aaa_��/4zr By:------I I ---A David Yett Mike Groomer Assistant City Attorney/ Assistant City Manager ATTES T G- - / ,-)- (v 41 Contract Authorization p By: Ao sa"'Z - � — 0 Gloria Pearson DatO City Secretary FORT WORTH INDEPENDENT SCHOOL DISTRICT y: Gary J. Manny President,Board of Education 9 City of Fort Worth, Texas 41�jqqor and Councit Col"' munication DATE REFERENCE NUMBER LOG NAME PAGE 8/31/99 G-12649 02PROJECT 1 of 1 SUBJECT ADOPTION OF ORDINANCE APPROVING THE PROJECT PLAN AND THE FINANCING PLAN FOR TAX INCREMENT REINVESTMENT ZONE NO. 4 (SOUTHSIDE/MEDICAL DISTRICT TIF) AND AUTHORIZING A PARTICIPATION AGREEMENT WITH THE FORT' WORTH INDEPENDENT SCHOOL DISTRICT FOR THE ZONE RECOMMENDATION: It is recommended that the City Council adopt the attached ordinance approving the Project Plan and Reinvestment Zone Financing Plan for Tax Increment Reinvestment Zone No. 4 (South side/M ed ical District TIF) and authorizing a Participation Agreement with the Fort Worth Independent School District for the Zone. DISCUSSION: The Southside/Medical District TIF was created by the City Council by ordinance on November 25, 1997. State law (Tax Code 311.011) requires that the Board of Directors of the TIF (Board) prepare and adopt a project plan and a reinvestment zone financing plan and submit the plans to the City Council. It is anticipated that the Board will adopt the Project and Financing Plans at its August 30, 1999 meeting and recommend their approval by the City Council. Copies of the adopted Project and Financing Plans will be provided to the City Council. In addition to approving the Project and Financing Plans, adoption of the attached ordinance would authorize the City Manager to execute a Participation Agreement with the Fort Worth Independent School District (FWISD) containing the terms and conditions for FWISD's participation in the Southside/Medical District TIF. A copy of the proposed agreement will be provided to the City Council. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies this action will have no material effect on City funds. MG:k Submitted for City Manager's FUND I ACCOURfT CENTER AMOUNT CITY SECRETARY Office by: (to) r� `�} } eJil,� Mike Groomer 6140 `.` ' Originating Department Head: nr,r� 1999 Tom Higgins 6192 (from) Additional Information Contact: Jay Chapa 8003 Adopted Ordinance No. f 3R 1 q