HomeMy WebLinkAboutOrdinance 26417-09-2023ORDINANCE NO. 26417-09-2023
AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE
CITY OF FORT WORTH AS "TAX ABATEMENT
REINVESTMENT ZONE NUMBER ONE HUNDRED AND SIX,
CITY OF FORT WORTH, TEXAS"; PROVIDING THE
EFFECTIVE AND EXPIRATION DATES FOR THE ZONE AND A
MECHANISM FOR RENEWAL OF THE ZONE; AND
CONTAINING OTHER MATTERS RELATED TO THE ZONE.
WHEREAS, pursuant to the City of Fort Worth's ("City") Tax Abatement Policy,
which was adopted by the City Council to be effective on February 28, 2023 by way of
Resolution No. 5709-02-2023 ("Tax Abatement Policy"), the City has elected to be
eligible to participate in tax abatement and has established guidelines and criteria
governing tax abatement agreements entered into between the City and various third
parties, as authorized by and in accordance with the Property Redevelopment and Tax
Abatement Act, codified in Chapter 312 of the Texas Tax Code ("Code");
WHEREAS, the City Council desires to promote the development of the area in
the City more specifically described in Exhibit "A" of this Ordinance ("Zone") through
the creation of a reinvestment zone for the purpose of supporting new business investment
or expansion, as authorized by and in accordance with Chapter 312 of the Code;
WHEREAS, Siemens Industry Inc., or an Affiliate, ("Company") wishes to
expend or cause to be expended at least $70 million in real property improvements for the
development of Company's manufacturing facility to be located in the Zone, and Company
intends to install new taxable tangible business personal property at the facility worth at
least $55 million that will ultimately result in a combined real and personal property
investment of at least $125 million (collectively, the "Improvements");
WHEREAS, Company has applied for real property and business personal
property tax abatements from the City in return for the installation of the Improvements in
the Zone and compliance with certain other employment and spending requirements;
WHEREAS, to foster economic development in the Zone, and the City, in general,
it is anticipated that the City will enter a tax abatement agreement(s) for one or more
Improvements within the Zone;
WHEREAS, on September 12, 2023, the City Council held a public hearing
regarding the creation of the Zone, received information concerning the Improvements
proposed for the Zone, and afforded a reasonable opportunity for all interested persons to
speak and present evidence for, or against, the creation of the Zone ("Public Hearing"),
as required by Section 312.201(d) of the Code;
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Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Six,
City of Fort Worth, Texas
WHEREAS, notice of the Public Hearing was published in a newspaper of general
circulation in the City at least seven (7) days prior to the Public Hearing, which satisfies
the requirement of Section 312.201(d)(1) of the Code; and
WHEREAS, in accordance with Sections 312.201(d)(2) and (e) of the Code, notice
of the Public Hearing was also delivered, in writing, to the presiding officer of the
governing body of each taxing unit that includes in its boundaries real property that is to
be included in the proposed Zone not later than the seventh day before the date of the public
hearing.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS:
SECTION 1.
FINDINGS.
That, after reviewing all information before it regarding the establishment of the
Zone and after conducting the Public Hearing and affording a reasonable opportunity for
all interested persons to speak and present evidence for, or against, the creation of the Zone,
the City Council hereby makes the following findings of fact:
1.1. The statements and facts set forth in the recitals of this Ordinance are true and
correct. Therefore, the City has met the notice and procedural requirements
established by the Code for creation of the Zone under Chapter 312 of the Code.
1.2. The Improvements proposed for the Zone, as more specifically outlined in the
Public Hearing, are feasible and practical and, once completed, will benefit the land
included in the Zone as well as the City for a period of more than ten (10) years,
which is the statutory maximum term of any tax abatement agreement entered into
under the Chapter 312 of the Code.
1.3. As a result of designation as a reinvestment zone, the area within the Zone is
reasonably likely to contribute to the expansion of primary employment and to
attract major investment in the Zone that will be a benefit to property in the Zone
and will contribute to the economic development of the City.
SECTION 2.
DESIGNATION OF ZONE
That the City Council designates the Zone described in the boundary description
attached hereto as Exhibit "A" and made a part of this Ordinance for all purposes as a
reinvestment zone for purposes permitting tax abatement as may be found desirable by the
City or any other eligible taxing units for purposes authorized by and in accordance with
Chapter 312 of the Code. This Zone will be known as "Tax Abatement Reinvestment
Zone Number One Hundred and Six, City of Fort Worth, Texas." This project is eligible
for commercial/industrial tax abatements per Section 4 of the Tax Abatement Policy
because it concerns a Target Industry.
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Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Six,
City of Fort Worth, Texas
SECTION 3.
TERM OF ZONE
The Zone takes effect upon the effective date of this Ordinance and expires five (5)
years thereafter. The Zone may be renewed by the City Council for one or more subsequent
terms not to exceed five years, unless otherwise allowed by law.
SECTION 4.
SEVERABILITY
If any portion, section, or part of a section of this Ordinance is subsequently
declared invalid, inoperative, or void for any reason by a court of competent jurisdiction,
the remaining portions, sections or parts of sections of this Ordinance will remain in full
force and effect and shall not in any way be impaired or affected by such decision, opinion,
or judgment.
SECTION 5.
IMMEDIATE EFFECT.
That this Ordinance takes effect upon its adoption.
APPROVED AS TO AND LEGALITY:
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Tyler F Wallach
Senior Assistant City Attorney
ADOPTED AND EFFECTIVE: September 12, 2023
M&C: 23-0707
ATTESTED BY:
Janette Goodall
City Secretary
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Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Six,
City of Fort Worth, Texas
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EXHIBIT "A"
BOUNDARY DESCRIPTION OF ZONE
Being a 43.0895-acre (1,876,977 square feet) tract of land situated in the Shelby County School
Land Survey, Tracts 3 and 4, Abstract No 1375, City of Fort Worth, Tarrant County, Texas being
all of Lot 11, Block A, Carter Park East, an addition to the City of Fort Worth, Texas according
to the plat recorded in Instrument No. D221089352 of the Official Public Records of Tarrant
County, Texas.
FORT WORTH:
Tax Abatement Reinvestment Zone No. 106
7200 Harris Legacy Dr Fort Worth TX 76140
"Exhibit A"
Copyright 2023 City of Fort Worth. Unauthorized reproduction is a violation of applicable laws. This product is for informational purposes and may not have been
prepared for or be suitable for legal engineering or surveying purposes. It does not represent an on -the -ground survey and represents only the appropriate relative
location of property boundaries. The City of Fort Worth assumes no responsibility for the accuracy of said data.
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 09/12/23 M&C FILE NUMBER: M&C 23-0707
LOG NAME: 17EDTARIZ106
SUBJECT
(CD 8) Conduct Public Hearing and Adopt the Attached Ordinance Designating Tax Abatement Reinvestment Zone No. 106, City of Fort Worth,
Texas, for Property Located at 7200 Harris Legacy Drive for Development of a Manufacturing Facility for Siemens Industry Inc., or an Affiliate
(PUBLIC HEARING - a. Report of City Staff: Cherie Gordon; b. Public Presentations; c. Council Action: Close Public Hearing and Act on M&C)
RECOMMENDATION:
It is recommended that the City Council:
1. Conduct a public hearing concerning the designation of Tax Abatement Reinvestment Zone No. 106, City of Fort Worth, Texas, for property
located at 7200 Harris Legacy Drive for the development of a manufacturing facility for Siemens Industry Inc., or an Affiliate;
2. Find that the intended improvements, which are set forth in more detail below, are feasible and practical and would be a benefit to the land to
be included in Tax Abatement Reinvestment Zone No. 106 and to the City after the expiration of any tax abatement agreements; and
3. Adopt the attached ordinance designating Tax Abatement Reinvestment Zone No. 106, City of Fort Worth, Texas, pursuant to and in
accordance with Chapter 312 of the Texas Tax Code.
DISCUSSION:
The proposed Tax Abatement Reinvestment Zone No. 106, City of Fort Worth, Texas (TARZ 106) is for the property located at 7200 Harris Legacy
Drive in Fort Worth, Texas (Property). A more detailed description of the Property is included as Exhibit A to the attached Ordinance. Siemens
Industry Inc., or an Affliate, (Company) is considering leasing the Property to develop a manufacturing facility. The proposed project is anticipated
to result in at least $125 million in real and business personal property investment, along with the creation of at least 715 full-time jobs with a
minimum salary of $63,000.00.
Designating this area as a reinvestment zone allows the City the option to enter into a tax abatement agreement with the Company to help faciliate
development within this area.
As required by Chapter 312 of the Texas Tax Code, a public hearing must be conducted regarding the creation or expansion of a Reinvestment
Zone. Notice of this hearing was delivered to the governing body of each affected taxing unit and published in a newspaper of general circulation
at least seven days prior to this hearing.
Pursuant to Chapter 312 of the Texas Tax Code, the area encompassing the proposed TARZ 106 meets the statutory criteria for designation as a
Tax Abatement Reinvestment Zone beacuse the area is likely, as a result of the designation, to contribute to the retention or expansion of primary
employment or to attract major investment in TARZ 106 that would be a benefit to the Property and that would contribute to the economic
development of the City. Further, the proposed improvements and investments are feasible and practical and would be a benefit to the land to be
included in the TARZ 106 and to the City after the expiration of any tax abatement agreement.
The term of TARZ 106 will be five years from the date of adoption of the attached Ordinance and may be renewed for periods not to exceed five
years each unless otherwise allowed by law.
The proposed zone is located in COUNCIL DISTRICT 8.
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 approval of these recommendations will have no material effect on City funds.
Submitted for City Manager's Office by. William Johnson 5806
Originating Business Unit Head: Robert Sturns 2663
Additional Information Contact: Cherie Gordon 6053