HomeMy WebLinkAboutContract 41452-ILINTERFUND LOAN AGREEMENT
FORT WORTH A VIA TI ON DEPARTMENT
and
FORT WORTH TRANSPORTATION
AND PUBLIC WORKS DEPARTMENT
THIS INTERFUND LOAN AGREEMENT (herein fter referred to as the
"Agreement") is made and entered into as of this j_J_ day of , 2012 , by and
between the FORT WORTH AVIATION DEPARTMENT ("Le er") and the FORT
WORTH TRANSPORTATION AND PUBLIC WORKS DEPARTMENT ("Borrower"), in
respect of a non-negotiable loan in the principal amount of T EN MILLION FOUR HUNDRED
THOUSAND AND N0/100 DOLLARS ($10 ,400 ,000 .00), plus interest (the "Loan").
WHEREAS , pursuant to the Federal Aviation Administration's ("FAA") Policy and
Procedures regarding use of Airport Revenues , and in accordance with the Revenue and
Expenditure policies for Gas Lease Revenues as outlined in the Financial Management Policy
Statements ("FMPS") of the City of Fort Worth , the Borrower has requested an interfund loan
from Lender for the purpose of making road improvements, including design and construction, to
North Riyerside Drive, specifically for the widening of North Riverside Drive/Old Denton Road
between Golden Triangle Boulevard and North Tarrant Parkway (the "Project"), which is more
specifically depicted in "Exhibit A," which is attached hereto and made a part of this Agreeme nt
for all purposes; and
WHEREAS , the Loan will be repaid using dedicated funds from TAX INCREMENT
REINVESTMENT ZONE NUMBER SEVEN, CITY OF FORT WORTH, TEXAS , (the
"TIF"), and in accordance with City Secretary Contract No . 41452 , as amended , a Tax
Increment Financing Development Agreement between the TIF BOARD OF DIRECTORS
("TIF Board") and the CITY OF FORT WORTH (the "City"), which is attached hereto as
"Exhibit B," and made a part of this Agreement for all purposes ; and
WHEREAS, the use of TIF funds is an acceptable use under Chapter 311 of the Texas
Tax Code to repay the Loan for the Project.
NOW, THEREFORE , the Lender and Borrower, for and in consideration of the terms
and conditions set forth herein , do hereby agree as follows:
ARTICLE 1
DEFINITIONS
For purposes of this Agreement, the following terms shall have the meanings indicated:
1.1 The term "Event of Default" shall mean the failure , refusal or neglect of Borrower to
make , or cause to be made , punctual payment of the outstanding balance as the same
shall become due and payable .
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
1.2 The term "Loan" shall mean the Loan by Lender to Borrower, in the amount set forth in
the first paragraph of this Agreement.
2.1
2.2
ARTICLE 2
LENDER'S COMMITMENT
Loan Proceeds. Subject to the terms , provisions and conditions of this Agreement,
Lender will make , and Borrower will accept, a non-negotiable Loan in the aggregate
amount of the principal sum of $10,400 ,000.00 , plus interest as set forth in Section 3.4
herein. Interest shall be calculated on all sums advanced from the dates of such advances.
Fund Account. Loan Proceeds shall be deposited into the designated fund account for the
Borrower in one installment in the sum of the principal amount.
ARTICLE 3
BORROWER'S COMMITMENT
3.1 Term. All unpaid principal and accrued and unpaid interest is due and payable on or before
September 30, 2018 ("Due Date").
3.2 Repayment. This Loan shall be re-paid by funds from the TIF as authorized in Exhibit B ,
and payments shall be made in annual installments of principal plus interest, in accordance
with , Exhibit "C," Payment Schedule, which is attached hereto and incorporated herein
for all purposes. TIF payments shall be administered by the City of Fort Worth Housing
and Economic Development Department. The unpaid principal balance of this Loan at any
time will be the total amounts advanced by Lender. At any time, Borrower may make
payments greater than , or in addition to ("Additional Payments"), the payment due for the
corresponding fiscal year. In the event of such payment, the balance and interest due on the
loan shall be re-calculated by the Lender to reflect the additional payment and the total
amount due shall be reduced accordingly. The re-calculated balance shall be reflected in
"Revised Exhibit C," which shall replace Exhibit C , and shall be made a part of this
Agreement for all purposes. Borrower may at any time pay all or any part of this Loan
without the payment of any premium or fee.
3 .3 Expenditures. Borrower agrees to make all expenditures from Loan Proceeds in accordance
with the Project and the Project Plan as set forth in Exhibit B.
3.4 Interest. Borrower shall pay interest on the unpaid principal balance outstanding at a rate
per annum equal to the interest rate on l 0-year United States Treasury Notes in effect on
the date of approval of the Loan by the Fort Worth City Council in accordance with Exhibit
C , plus one percent (1 %) (the "Stated Rate"). Interest on this Loan shall be computed on a
365/366 day year. All past-due principal and interest on this Loan will bear interest at a
rate per annum equal to 4.39%.
3.5 Right of Inspection . During the term of this Agreement, and for a period up to three
years after full repayment is made by Borrower and all obligations are satisfied under this
lnterfund Loan Agree ment
Road Improve ment s to N . Ri ve rsi de Dri ve (Heri tage Trace to No rth Tarra nt Parkway) 2
:;
Agreement, Borrower shall permit Lender, or Lender's designated agent, to examine,
audit and make copies or reproductions of Borrower's records related to transactions
under this Loan Agreement, at all reasonable times , and at no additional cost.
3.5 Annual Report of Ex penditures . Borrower, along with the Housing and Economic
Development Department, shall make an annual report to the TIF Board indicating and
verifying all expenditure of funds for the Project. This report shall be submitted to the
TIF Board no later than December 31 st of each year. Further, an explanation of the Loan,
including rate, balance , and amount repaid , shall be included in the City of Fort Worth 's
Comprehensive Annual Financial Report, a copy of which shall be sent to the FAA at the
end of each fiscal year.
ARTICLE 4
REMEDIES
4.1 Rights, Remedies and Recourses: Upon the happening of any Event of Default, Lender
shall have the specific right to declare the advanced principal and accrued interest on the
Loan immediately due and payab le .
4.2 Termination of Lender's Obligations: Upon the happening of any Event of Default, all
obligations (if any) of Lender hereunder, including specifically, any obligation to
advance funds hereunder, shall immediately cease and terminate.
4.3 Acceleration: Notwithstanding anything herein to the contrary , or anything contained in
or inferable from any provision hereof, upon the happening of an Event of Default, the
Loan shall immediately become due and payable in full without the necessity of any
further action on the part of Lender, and Borrower expressly waives any requirement of
notice of intention to accelerate or notice of such acceleration of the maturity of the Loan.
4.4 Federal Aviation Administration: The Federal Aviation Administration's Policy and
Procedures Concerning the Use of Airport Re venue, 64 Federal Register 7696 (February
16 , 1999), establish that failure to repay this loan , with interest, will constitute a violation
of Federal Aviation Administration grant requirements . Violations of the grant
requirements may result in loss of future grant funding or require repayment of
previously awarded grant funds.
ARTICLE 5
GENERAL TERMS AND CONDITIONS
5.1 No Waiver: Any failure by Lender to insist, or any election by Lender not to insist, upon
Borrower 's strict performance of any of the terms , provisions or conditions of the Loan
shall not be deemed to be a waiver of same or of any other term , provision or condition
thereof, and Lender shall have the right at any time thereafter to insist upon strict
performance by Borrower of any and all of same.
lnterfund Loan Agre ement
Road Improvements to N . Riverside Drive (Heritage Trace to North Tarrant Parkway) 3
5.2 Modification: This Agreement may not be amended , waived , discharged or terminated
except upon written agreement between the parties and approval by the Fort Worth City
Council.
This Agreement shall be effective ("Effective Date") upon approval of the Fort Worth City
Council and the last date executed by Lender and Borrower.
[Signature Page and Exhibits follow]
lnte rfun d Lo an Agree ment
Road Im prove ments to N . R ivers ide Dr ive (H eritage Trace to No rth Tarrant Park way) 4
ACCEPTED AND AGREED:
Datedthis }1/L dayof ~ ,2012 .
CITY OF FORT WORTH:
By: s...: .. 114 t;;'-
Fernando Costa
Assistant City Manager
Date: -~B_._0~11,_/-_,_z. ___ _
BORROWER:
DEPARTMENT OF TRANSPORTATION
AND P JC WORKS
By: tJ.W
Date:
M&C: C-25761
Date Approved: 7/24/2012
APPROVED TO FORM AND LEGALITY:
i(~ MaleshiaFarmer
Senior Assistant City Attorney
Interfund Loan Agreement
LENDER:
DEPARTMENT OF AVIATION
By: L/~;f?Z:
Bill Welstead
Director
APPROVAL RECOMMENDED:
HOUSING AND ECON OMIC
DEVELOPMENT D EPARTMENT
By -<" _) -r4_-
Jay Ch::?
Director
Date: ef>/;~/1;;).. -----'--------
Road Improvements to N. Riv e rside Dri ve (Heritage Trace to North Tarrant Pa rk way)
OFFICIAL RECORD
CITY SECRETARY
FT, WORTH, TX
5
lnterfund Loan Agreem ent
EXHIBIT A
Project Description
Improvements to N. Riverside Drive
from Heritage Trace to N. Tarrant Parkway
Road Improve ments to N. Ri versid e Dri ve (Heritage Trace to Nort h Tarrant Pa rkway) 6
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North Riverside Drive
GOLDEN TRIANGLE BLVD .
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HERITAGE TRACE PKWY.:.
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DALTON ROAD
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lnter fund Loan Agreement
EXHIBIT B
City Secretary Contract No. 41452, as amended
Tax Increment Development Agreement
between City of Fort Worth and TIF #7 Board
Road Improvements to N . Riverside Drive (Her itage Trace to North Tarrant Parkway)
7
AMENDMENT NO. 1 TO
TAX INCREMENT FINANCING
DEVELOPMENT AGREEMENT
Widening of North Riverside Drive
This AMENDMENT NO. 1 TO TAX INCREMENT FINANCING
DEVELOPMENT AGREEMENT ("Amendment") 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 o f 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 Amendment :
A. The Board and City previously entered into that certain Tax Increment Financing
Development Agreement, as approved by the Board on September 30, 2010 (the "Agreement"),
pursuant to which the Board agreed to reimburse City up to $10,400 ,000.00 of revenues plus
interest in the TIF Fund to pay for or reimburse the City for the costs o f widening North
Riverside Drive between Heritage Trace Parkway and Golden Triangle Road (the "Project"). as
more specificall y set forth in the Agreement.
B. The Board and City wish to expand the scope of the Project to include design and
construction costs of widening North Riverside Drive between Dalton Road and North Tarrant
Parkway, with the understanding that the $ I 0,400,000.00 maximum reimbursement by the Board
will not be increased .
NOW, THEREFORE, the Board and the City, for and in consideration of the public
purposes achieved by the Project, as described in the Agreement, do hereby contract, covenant,
and agree as follows:
1. Exhibit "A" (Description and General Rendering of Project) is hereby amended to add
the following to the scope of the Project :
The Project will also improve North Riverside Drive between Dalton Road and North
Tarrant Parkway .
2. All terms and conditions set forth in the Agreement that are not expressly amended herein
shall remain in full force and effect.
3. Capitalized terms used but not defined herein shall have the same meanings ascribed to
them in the Agreement.
Page I
Am endm ent No . I to
De ve lopm ent Agreement for North Ri vers id e Drive Improvements
betwee n North Tarrant Parkway Tl F and Ci ty of Fort Worth
06 -20 -1 2 P03 :2 2 I ,
4. This Amendment shall be effective as of June 25 , 2012.
IN WITNESS WHEREOF, the undersigned have caused this Agreement to be
executed:
CITY OF FORT WORTH:
-Fernando Costa
Assistant City Manager
APPROVED AS TO FORM AND LEGALITY:
Maleshia Farmer
Senior Assistant City Attorney
Date of Board Approval:
June 25, 2012
Page 2
Amendment No. I to
Developme nt Agreement for North Riversi de Drive Improve ments
between North Tarrant Parkway T l F and Ci ty of Fort Worth
BOARD OF DIRECTORS OF TAX
INCREMENT REINVESTMENT ZONE
NUMBER EVEN, CITY F FORT
W f A:
TAX IN CRKMENT FINANCING
DEVELOPMENT AGREEMENT
CITY SECRETARY 1/ 1 Is 1 CONTRACT NO. _ ____:.'t...;;...:::;d--~
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-£005.
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"). 1n 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").
Page I
Development Agreement for North Riverside Drive Improvements (Heritage Trace to Golden Triangle)
between N . Tarrant Parkway TIF and City of Fort Worth
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 hereby 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:
Page2
(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);
Development Agreement for North Riverside Drive Improvements (Heritage Trace to Golden Triangle)
between N. Tarrant Parkway TIF and City ofFort Worth
(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 TIP 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 TIP 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 76102
Page 3
City:
Attn : City Manager
City Manager's Office
1000 Throckmorton
Fort Worth, TX 76102
Devel o pment Agreement fo r North Ri verside Drive Improvements (H eritag e Trace to G olden Triang le)
between N . Tarran t Parkway TIF and Ci ty of Fort Wo rth
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 widertaking 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 inval id, 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 cowiterparts, 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 :
Page4
De ve lopment Agreement fo r No rth Ri versi de Drive Improvemen ts (Heritage Trace to Gol d en T riangl e)
between N . Tarrant Parkway TIF an d C ity of Fort Worth
CITY OF FORT WORTH:
Date:_:J-_/-'--=l S--+-) ____ \ l __ _ Date: ----------------
APPROVED AS TO FORM AND LEGALITY:
By:~
PeterVaky
Assistant City Attorney
M&C: ___ =n=on=e"'-='re'""q"'"'u=ir'"""ed-"'------
Page 5
Development Agreement for North Riverside Drive Improvements (Heritage Trace to Golden Triangle)
between N . Tarrant Parkway TlF and City of Fort Worth
EXHIBIT "A"
THE PROJECT
The Project will improve North Riverside Drive from Golden Triangle Boulevard to Heritage
Trace Parkway.
Development Agreement for North Riverside Drive Imp rovemen ts (Heritage Trace to Go ld en Triangle)
between N. Tarrant Parkway TIF and City ofFort Worth
EXHIBIT C
Payment Schedule
Interfund Loan for Improvements to North Riverside Drive
• Payment term : 7 year payment term; all unpaid principal and accrued interest mu st be
repaid on or before September 30 , 2018
• Interest rate: 10 Year United States Treasury rate , plus 1% (2.39 %)
• Payments shall be made annually on or before September 30th of the corresponding year
• No penalty for early payments
• Assumptions: HCA development, 5% annual growth , TIF admin $75K cap
FY2012 FY2013 FY 2014 FY 2015 FY 2016 FY 201 7 FY201 8
Balance 10 ,400 ,000 9 ,451 ,755 8 ,177,652 6 ,373 ,098 5 ,025 ,415 3 ,145 ,522 1,220 ,700
Interest 51 ,755 225 ,897 195,446 152 ,317 120 ,107 75 ,178 29 ,175
Payment 1,000 ,000 1,500,000 2 ,000 ,000 1,500 ,000 2 ,000 ,000 2 ,000 ,000 1,249,875
TOTAL $9,451,755 $8,177,652 $6,373,098 $5,025,415 $3,145,522 $1,220,700 $0
Total to A viation : $11 ,249,875
lnterfund Loan Agree ment
Road Impro ve ments to N . Ri ve rs id e Dr ive (Her it age T race to North Tarra nt Pa rkway) 8
M&C.Rev iew Pag e 1 of 2
Official site of the City of Fort Worth, Texas
CITY COUNCIL AGENDA fORTWORTII
COUNCIL ACTION: Approved on 7/24/2012 -Ordinance No. 20305-07-2012
DATE: 712412012 REFERENCE
NO.: C-25761 LOG NAME: 17NRDINTERFUNDLOAN
CODE: C TYPE: NON-PUBLIC
CONSENT HEARING: NO
SUBJECT: Authorize In t erest-Bearing lnterfund Loan from the Aviation Endowment Gas Lease Fund
to the Specially Funded Capital Projects Fund in the Amount of $10,400 ,000 .00 for the
Interim Fund i ng of Improvements to North Riverside Drive/Old Denton Road Between
Golden Triangle Boulevard and North Tarrant Parkway , Authorize Execution of Necessary
and Related Documents to Effect the Loan and Adopt Appropriation Ordinance (COUNCIL
DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council :
1. Suspend the Financial Management Policy Statements that require an interfund loan to be repaid
within five years ; ·
2 . Authorize an interest-bearing lnterfund Loan Agreement from the Aviation Endowment Gas Lease
Fund to the Specially Funded Capital Projects Fund in the amount of $10 ,400 ,000 .00 for interim
financing of i mprovements to North Riverside Drive/Old Denton Road between Golden Triangle
Boulevard and North Tarrant Parkway , pending contract execution ; and
3 . Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in
the Specially Funded Capital Projects Fund in the amount of $10 ,400 ,000.00 .
DISCUSSION:
Due to increased development along North Riverside Drive/Old Denton Road and North Tarrant
Parkway, traffic congestion has increased and safety has become a concern . To help alleviate this
problem , the Tax Increment Reinvestment Zone Number Seven (TIF 7) Board of D irectors approved
funding for improvements to North Riverside Drive/Old Denton Road between Heritage Trace
Parkway and Dalton Street on April 30 , 2010 .
On September 14 , 2010 , the City's Housing and Econom ic Development Committee recommended
supporting additional improvements to North Riverside Drive in-li ne with the community's priorities. In
response to the Committee's recommendations , on September 30 , 2010 , the TIF 7 Board of D irectors
approved the execution of a Development Agreement with the C ity of Fort Worth for the widening of
North Riverside Drive/Old Denton Road between Heritage Trace Parkway and Golden Triangle
Boulevard (City Contract No . 41452 -Phase II), with the project to be financed through an lnterfund
Loan Agreement between the Aviation and Transportation and Public Works Departments .
As design progressed , it became clear that the road improvement project wou ld come in under
budget. Therefore , the TIF 7 Board of D irectors approved Amendment No . 1 to the Development
Agreement on June 25 , 2012 to expand the defin ition of "Project" to include design and construction
costs to improve North Riverside Drive/Old Denton Road between Golden Triang le Boulevard to
North Tarrant Parkway .
http ://ap p s .cfwnet.org/council_packet/mc _review.asp?ID= 17 123&councildate=7/24 /2012
~
8/14 /20 12
M&C ·Re view . .
•
lnterlund Loan Agreement Terms
Once approved by City Council , the lnterfund Loan Agreement between the Transportation and
Public Works and Aviation Departments will authorize the Aviation Department to loan
$10,400 ,000.00 needed for road improvements to North Riverside Drive/Old Denton Road in
accordance with the Revenue and Expenditure Policies for Gas Lease Revenues as outlined in the
City's Financial Management Policy Statements (FMPS) and in accordance w ith the Federal Aviation
Administration's Policy and Procedures Concerning the Use of Airport Revenue.
Pursuant to the FMPS , loan repayment must be from an independent revenue source and not from
the City's General Fund . In this case , the loan will be reimbursed by increment collected in the TIF 7
district. It is estimated that the TIF 7 district would re-pay the loan in annual payments , includ ing
interest , within seven years. Interest rate per annum will be equal to the interest rate on 10-year
United States Treasury Notes in effect on the date of approval by City Council , currently estimated at
1.66 percent plus one percent. As this seven-year period is longer than the five-year payback policy
outlined in the City's FMPS , approval of the lnterfund Loan Agreement will require suspension of the
FMPS policy to re-pay the loan within five years .
There is no penalty for repaying the loan within a shorter timeframe .
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Di rector certifies that upon approval of the above
recommendations and adoption of the attached appropriation ordinance , funds will be available in the
current capital budget, as appropriated , of the Specially Funded Capital Projects Fund .
TO Fund/Account/Centers
2) C291 222125 0000000 $10,400 .000 .00
~ C291 446200 202230172483 $10,400 .000 .00
~ C291 541200 202230172483 $10,400.000.00
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
ATTACHMENTS
120724 17NRD1NTERFUNDLOAN ExhibitA .pdf
17NRD1NTERFUNDLOAN A012.doc
MC Map North Riverside Drive .pdf
FROM Fund/Account/Centers
~
T125 137291 000125099901 $10,400 ,000 .00
Fernando Costa (6122)
Jay Chapa (5804)
Robert Sturns (8003)
Marguerite Allen (2235)
http ://app s .cfwnet.org/co uncil_packet/mc_review.asp ?I D=l 71 23&counci ldate=7/24/2012
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