HomeMy WebLinkAboutContract 41452TAX INCREMENT FINANCING
DEVELOPMENT AGREEMENT
ClTY SECRETARY lt I LtS d
CONTRACT NO . -
This TAX INCREMENT FINANCING DEVELOPMENT AGREEMENT
("Agreement") is entered into by and between the BOARD OF DIRECTORS OF TAX
INCREMENT REINVESTMENT ZONE NUMBER SEVEN, CITY OF FORT WORTH,
TEXAS (the "Board"), an administrative body appointed in accordance with Chapter 311 of the
Texas Tax Code (the "TIF Act") to oversee the administration of Tax Increment Reinvestment
Zone Number Seven, City of Fort Worth, Texas, a reinvestment zone designated by ordinance of
the City of Fort Worth in accordance with the TIF Act, and the CITY OF FORT WORTH
("City"), a home rule municipality organized under the laws of the State of Texas.
The Board and City hereby agree that the following statements are true and correct and
constitute the basis upon which the Board and City have entered into this Agreement:
A. On December 9, 2003 the City Council adopted Ordinance No. 15774,
establishing Tax Increment Financing Reinvestment Zone Number Seven, City of Fort Worth,
Texas (the "TIF District"), and establishing the tax increment fund of the TIF District (the "TIF
Fund").
B. On February 3, 2005 the Board adopted a project and financing plan for the TIF
District, as amended on September 29, 2005 (the "TIF Project Plan"). The TIF Project Plan was
approved by the City Council on October 25 , 2005 pursuant to Ordinance No. 16667-10-2005 .
C. The TIF Project Plan includes the widening of North Riverside Drive (Old Denton
Road) into a four (4)-lane divided roadway. The Board previously executed that certain Tax
Increment Financing Development Agreement with the City dated on or about May 10, 2010
pursuant to which the Board authorized the transfer of up to $2.2 million in TIF revenues for the
widening of North Riverside between Heritage Trace Parkway and North Tarrant Parkway (the
"North Riverside I Project"). The City now wishes to initiate the widening of North Riverside
Drive between Heritage Trace Parkway and Golden Triangle Road in accordance with the general
plan attached hereto as Exhibit "A", which is hereby made a part of this Agreement for all
purposes (the "Project"). In accordance with the City's powers set forth in Section 311.008 of
the TIF Act, and with the Board's consent, as authorized by the Board during its meeting on
September 30, 2010, the City wishes to use up to Ten Million Four Hundred Thousand Dollars
($10,400,000.00) of revenues in the TIF Fund to pay for or reimburse the City for the costs of the
Project, plus interest. The Board and the City wish to enter into this Agreement to memorialize the
manner in which such funds will be transferred from the TIF Fund to other appropriate funds or
accounts of the City.
D. The costs of the Project qualify as lawful "project costs", as that term is defined in
Section 311.002(1) of the TIF Act ("Project Cost").
OFFICIAL RECORD
CITY SECRETARY
Page I " wnRJH TX
Development Agreement for North Riverside Drive Improvements (Heritage T ace fo "(';d"\l'l~"Triang le)
between N. Tarrant Parkway TIF and City of Port Worth - I
NOW, THEREFORE, the Board and the City , for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. CITY'S OBLIGATIONS.
The City will oversee and be responsible for all aspects of the Project in accordance with
all Legal Requirements. The City will finance construction of the Project pursuant to a City
interfund loan of mineral interest revenues from the Aviation Department (the "Aviation Minerals
Fund") to the Transportation/Public Works Department or the City's Project Management Office
(the "lnterfund Loan"). The Interfund Loan must be approved by the Federal Aviation
Administration ("FAA"). FAA rules and regulations require that any unpaid balance on the
Interfund Loan carry interest. As of the Effective Date of this Agreement , it is anticipated that the
Interfund Loan will carry interest at a rate of Four and Twenty-six/One Hundredths Percent
(4.26%), compounded annually, but the Board agrees that the interest rate and other related
conditions and provisions shall be governed by the Interfund Loan documents or terms approved
by the FAA (the "Interest"). Upon request, the City hereby agrees to provide the Board with a
copy of all public documents concerning or related to the Interfund Loan. During the Term of this
Agreement, the City will annually calculate the amount of Interest that is owed under the Interfund
Loan and provide written notice of such amount to the Board.
2. TIF FUND CONTRIBUTIONS; PRIORITY OF PAYMENT.
The Board hereb y acknowledges and consents to the transfer from the TIF Fund of up to
Ten Million Four Hundred Thousand Dollars ($10 ,400 ,000.00), in whole or in part , to the
Aviation Minerals Fund ( or other funds or accounts of the City that will be used to reimburse the
Aviation Minerals Fund) solely to reimburse the Aviation Minerals Fund for construction costs
(but not design costs) of the Project. In addition , the Board hereby acknowledges and consents
to the transfer from the TIF Fund of such additional amounts as are necessary solely to pay
Interest in accordance with the Interfund Loan.
Notwithstanding anything to the contrary herein, such transfers shall be subject and
subordinate to the following existing contractual obligations of the Board:
(i) The retention by the Board of up to five percent (5%) of the tax increment
annually deposited into the TIF Fund in order to pay actual administrative and
operating expenses of the TIF District;
(ii) The obligation of the Board to pay any Reimbursement Amount required pursuant
to and in accordance with that certain Tax Increment Financing Development
Agreement by and between the Board, the City, and AIL Investment, L.P. dated
on or about December 20 , 2005 (City Secretary Contract No. 33002);
OFFICIAL RECORD
Page 2 ~ITY SECRETARY
Development Agreement for North Rivers id e Dri ve Impro vem ent (fl"entage TraSf,JQ. {;3 T ian g le)
between N. Tarrant Parkway TI F and C ity of Fort Worth FT. WOKTn,
(iii) The obligation of the Board to pay any Reimbursement Amount or to retain any
tax increment pursuant to and in accordance with that certain Tax Increment
Financing Development Agreement by and between the Board, the City, and
Presidio Vista I, Ltd. dated on or about March 21 , 2006 (City Secretary Contract
No . 33343);
(iv) Any transfers from the TIF Fund to other funds or accounts of the City that have
been identified as the funding source for the North Riverside I Project (as defined
in Recital C hereof) in accordance with that certain Tax Increment Financing
Development Agreement by and between the Board and the City dated on or
about May 10 , 2010 (City Secretary Contract No . 40214); and
(v) The obligation of the Board to pay any Reimbursement Amount required pursuant
to and in accordance with that certain Tax Increment Financing Development
Agreement by and between the Board and Columbia North Hills Hospital
Subsidiary, L.P. d/b /a Emergency Medical Center at Alliance dated on or about
December 23 , 2010 (Public Improvements at IH 35 W/North Tarrant Parkway
Interchange).
3. TERM.
The term of this Agreement shall commence on the later date of execution by both the
Board and City ("Effective Date") and expire upon the earlier of (i) the complete performance
of all obligations and conditions precedent by the Board and City; (ii) termination by either the
Board or City as permitted by this Agreement; or (iii) termination of the TIF District in
accordance with Section 311.017 of the TIF Act.
4. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the
following, or such other party or address as either party designates in writing, by certified mail,
postage prepaid, or by hand delivery:
Board:
Attn: Director
Housing & Economic Development Dept.
1000 Throckmorton
Fort Worth, TX 7 6102
Page 3
City:
Attn: City Manager
City Manager's Office
1000 Throckmorton
Fort Worth, TX 76102
OFFICIAL RECORD
Development Agreement for North Ri verside Drive Improvements
between N. Tarrant Parkway TIF and City of Fort Worth
t i~I J!!~t g le )
FT, WORTH, TX
5. COMPLIANCE WITH LEGAL REQUIREMENTS.
This Agreement and the Project are subject to all applicable federal, state and local laws ,
ordinances , rules and regulations , including , but not limited to , all provisions of the City 's
Charter and ordinances , as amended , and violation of same shall constitute a default under this
Agreement. In undertaking any work on the Project, City , its officers , agents , servants,
employees , contractors and subcontractors shall comply with all federal , state and local laws and
all ordinances, rules and regulations of the City, as such laws , ordinances , rules and regulations
exist or may hereafter be amended or adopted (collectively, "Legal Requirements").
6. SEVERABILITY.
If any provision of this Agreement is held to be invalid , illegal or unenforceable , the
validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired.
7. COUNTERPARTS.
This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original and constitute one and the same instrument.
8. CAPTIONS.
The captions to the various clauses of this Agreement are for informational purposes only
and shall not alter the substance of the terms and conditions of this Agreement.
9. ENTIRETY OF AGREEMENT.
This Agreement , including any exhibits attached hereto and any documents incorporated
herein by reference , contains the entire understanding and agreement between the Board and
City, their assigns and successors in interest, as to the matters contained herein. Any prior or
contemporaneous oral or written agreement is hereby declared null and void to the extent in
conflict with any provision of this Agreement. This Agreement shall not be amended unless
executed in writing by both parties and approved by the Board in an open meeting held in
accordance with Chapter 551 of the Texas Government Code.
IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed
as of the later date below:
Page 4 CCI~ S:~ftRD
Development Agreement for No rth Ri versi de Drive Impro ve ments (Herita e Patt!'ffl "'fl'i'lffigrej
betwee n N. Tarrant Parkway TIF and City ofFort Worth CITY SECRETARY
FT. WORTH, TX
CITY OF FORT WORTH:
APPROVED AS TO FORM AND LEGALITY:
Assistant City Attorney
M&C: ___ n~o~n~e_r~e __ qu~i_re_d _____ _
Page 5
BOARD OF DIRECTORS OF TAX
REINVEST~EN-J\ZON . BER
SEVEN, C(TY OF 0
TEXAS:
Date: ---------------
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Development Agreement for North Riverside Drive Improvements (Heritage Trace to Golden Triangle)
between N. Tarrant Parkway TIF and City of Fort Worth
EXHIBIT "A"
THE PROJECT
The Project will improve North Riverside Drive from Golden Triangle Boulevard to Heritage
Trace Parkway.
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Development Agreement for North Riverside Drive Impro vements (Heritage Trace to Golden Triangle)
between N. Tarrant Parkway TIF and City of Fort Worth