HomeMy WebLinkAboutResolution 5866-01-2024 A Resolution
NO. 5866-01-2024
AUTHORIZING THE FORT WORTH CONVENTION CENTER AS AVENUE
PROJECT IN ACCORDANCE WITH
CHAPTER 334,TEXAS LOCAL GOVERNMENT CODE,
AND DESIGNATING METHOD OF FINANCING FOR THE PROJECT, SUBJECT
TO VOTER APPROVAL AT
AN ELECTION CALLED FOR SUCH PURPOSE
WHEREAS, Chapter 334 of the Texas Local Government Code (the "Act")authorizes
the City Council to designate various sports - and community-related capital improvements —
including convention centers, convention center facilities,and related improvements in the vicinity
of convention centers — as a "venue" and to designate methods of financing to help fund
the planning, acquisition, establishment, development, and construction of the venue and
related infrastructure, subject to approval of the voters in an election called for that purpose;
and
WHEREAS, the Act defines "related infrastructure" to include "any store, restaurant,
on-site hotel, concession, automobile parking facility, area transportation facility, road,
street, water or sewer facility, park, or other on-site or off-site improvement that relates
to and enhances the use, value, or appeal of a venue, including areas adjacent to the venue,
and any other expenditure reasonably necessary to construct, improve, renovate, or expand a
venue, including an expenditure for environmental remediation"; and
WHEREAS, since opening over fifty-five years ago, the Fort Worth Convention Center
has hosted thousands of conventions and other events, drawn visitors to the City, and
generated stays in local hotels; and
WHEREAS, studies dating back more than two decades prepared by or for the benefit
of the owners of the Fort Worth Convention Center have recommended replacing the
outmoded arena space and adding more variably programmable meeting space in order to
improve facility usage and meet the needs of the modern convention and meeting space
customer; and
WHEREAS, upon acquiring ownership of the Fort Worth Convention Center in 1987,
the City embarked on a multi-project process to modernize the facility; and
WHEREAS, the first two phases of this modernization occurred in the early 2000s with
the demolition of the John F. Kennedy Theater and construction of a modern ballroom
and meeting space; and
WHEREAS, with the opening of Dickies Arena in late 2019, the City's arena needs
have been addressed; and
WHEREAS, the next phase of renovating and expanding the Fort Worth Convention
Center — including demolishing and replacing the existing half-century old arena — will
benefit the City by increasing visitors and tourism and enhancing the offerings available
to visitors and residents relating to conventions, public events, trade
Resolution 5 8 6 6 -01-2024
shows, consumer shows, and amateur sports events and is anticipated to greatly enhance
the appeal of the City as a destination for convent ions and other events drawing visitors
to the City; and
WHEREAS, if the voters approve in an election called for purposes of whether
the Fort Worth Convention Center and any related infrastructure should be designated as
a venue project under the Act and whether the method of financing outlined in this Resolution
should be authorized, much of the funding will come from certain taxes paid by persons
who stay at hotels within the City, including persons who are using or visiting the Fort
Worth Convention Center and other improvements in its immediate vicinity; and
WHEREAS, before calling such an election, the Act requires that the City Council
first adopt a Resolution providing for the planning, acquisition, establishment, development,
construction or renovation of a venue project and the method of financing authorized by the Act
that the City Council wishes to use to finance the project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS, THAT:
1. The City Council hereby designates the Fort Worth Convention Center and any
related infrastructure as a venue project under the Act (collectively, the"Venue
Project"), subject to approval of the voters at an election called for such purpose.
2. The City Council finds that the Venue Project:
does not constitute a venue or related infrastructure planned, acquired,
established, developed, constructed, or renovated under other law, including
Chapter 505 of the Texas Local Government Code or Subchapter E,
Chapter 451 of the Texas Transportation Code;
is not and will not be primarily used for community, civic, and charitable
events that are attended only by residents of the community; and
does not constitute a venue project described by Section 334.2515 or 334.2517
of the Texas Local Government Code.
3. The City Council hereby designates the following method of financing as those
that the City wishes to use to finance the Venue Project:
The imposition of a new venue hotel occupancy tax on the price paid
for a room in a hotel, at a rate not to exceed two percent (2%) of the
price of the hotel room, as and to the extent permitted by Subchapter
H of the Act, with such tax to be in addition to the tax imposed under Chapter
351 of the Texas Tax Code and with the combined hotel occupancy tax
rate imposed from all sources not to exceed 17 percent of the price paid
for a room in a hotel.
4. The City Manager or his designee is authorized and directed to send a copy
of this Resolution to the Texas Comptroller of Public
Accounts (the
Resolution 5 8 6 6 -01-2024
"Comptroller°'), together with any other information that may be requested by the
Comptroller, for a determination in accordance with the Act as to whether the
implementation of this Resolution will have a significant negative fiscal impact on
State revenue.
5. The City Manager or his designee shall place an ordinance calling an election
under Section 334.024 of the Act as to whether the Venue Project should be
designated and whether the method of financing the Venue Project should be
authorized in accordance with this Resolution, which ordinance will be considered
at a meeting of the City Council to be held as soon as practicable following the
earliest of (i) the date that the City receives written notice from the Comptroller
that the implementation of this Resolution will not have a significant fiscal impact
on State revenue, or (ii) the expiration of thirty
(30) days from the date that the Comptroller receives a copy of this Resolution,
if the Comptroller does not provide the City with the notice outlined in
subsection (i) above, but no later than February 16, 2024.
6. If the method of financing the Venue Project described in Section 2 of this Resolution
is approved at the election ordered by the City Council, as contemplated in Section
4 of this Resolution, the City Council subsequently shall establish by resolution
a venue project fund to be known as the "Fort Worth Convention Center Venue
Project Fund." The City shall deposit all tax proceeds from such approved method of
financing that are imposed by the City under the Act and any other sums required
by Section 334.042(b) of the Act into the Fort Worth Convention Center Venue
Project Fund. The City may deposit any revenues received by the City for the
Venue Project that are described in Section 334.042(c) of the Act into the Fort
Worth Convention Center Venue Project Fund. All funds deposited into the Fort
Worth Convention Center Venue Project Fund must be used exclusively for the
purposes permitted in Section 334.042 of the Act.
7. The City Council officially finds and determines that the meeting at which
this Resolution has been adopted was open to the public and that public notice
of the time, place and purpose of that meeting was given, all as required by Chapter
551, Texas Government Code.
8. Adoption of this Resolution satisfies the requirements of Section 334.021(b)
of the Act.
Adopted this 9th day of January 2024.
ATTEST:
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°o° oOOBy. g 00 °Jannette S. Goodall, City Secretary U
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