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INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 6985
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�ofFORl�o To the Mayor and Members of the City Council November 6 , 1984
Subject: HISTORY AND STATUS OF PAST CERTIFICATE OF OBLIGATION ISSUES
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Several questions have been raised regarding the City's previous involvements
with certificates of obligation. These questions are focused upon the four
certificate of obligation issues: the improvement and expansion of the runway
and taxiway at Meacham Field, the purchase of the Downtown Transportation
Terminal, the construction of the public garage and plaza adjacent to the
Hyatt Regency, and the purchase of the Rock Island Railroad right-of-way.
On December 11, 1974 (M&C G-2401), the City Council authorized the award of
a construction contract for improvements at Meacham Field and adopted Ordinance
No. 6766 to authorize the issuance of City of Fort Worth Certificates of
Obligation, Series 1973, in the amount of $2,310,000 to provide funds for the
City's portion of the contract cost. These improvements consisted of the,
construction of a new 150-foot by 7,500-foot North-South Runway, the re-
construction of the East-West Runway, a new parallel 50-foot by 2,800-foot
North-South Runway, all with related taxiway and other miscellaneous improvements.
On April 29, 1974 (M&C G-2407), the City Council adopted an ordinance authorizing
the issuance of certificates of obligation in the amount of $1,200,000 for the
purpose of paying contractual obligations to be incurred in the purchase of land
(Blocks 53 and 86, City Addition) which was subsequently traded for the Downtown
r, Transportation Terminal (SURTRAN) property. This property was sold in 1981 and
a portion of the proceeds was reserved for future principal and interest payments
on the certificates.
On June 24, 1980 (M&C G-4601), the City Council adopted an ordinance authorizing
the issuance of certificates of obligation for the purpose of providing funds
to construct a public parking garage and plaza in the amount of $2,000,000.
Prior to this issuance, on May 1, 1979, the City submitted an application to
the U.S. Department of Housing and Urban Development (HUD) under the Urban
Development Action Grant (UDAG) Program requesting funds for development of
a public plaza and a two-level sub-surface parking garage. As part of the
application, Woodbine Development Corporation committed to purchase, restore,
and convert the historic Hotel Texas into a modern Hyatt Regency Hotel, ,contingent
upon the proposed funding and construction of the adjacent public plaza and
parking garage. On April 15, 1980 (M&C G-5057), the City and Woodbine Development
Corporation executed a fifty-year parking garage lease whereby the City receives
a minimum annual rent of at least $60,000 to be escalated every five years by
the greater amount of (1) an amount based on the consumer price index increases
or (2) an amount based on eighty percent of net profits from the operation of
the facility. Receipt of the annual rent of $60,000 has been confirmed by the
Housing and Human Services Department.
L65"i�`gUED BY THE CITY MANAGER FORT WORTH, TEXAS s �r
INFORMAL REPORT TO CITY LINCIL MEMBERS No. 6985 - p.2
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�ofcoer,�� To the Mayor and Members of the City Council November 6 , 1984
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xrExPy, Subject: HISTORY AND STATUS OR PAST CERTIFICATE OF OBLIGATION ISSUES
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On August 16, 1983, the City Council authorized the issuance of $1,000,000 in
certificates of obligation to purchase the Rock Island Railroad right-of-way.
The ordinances which authorize the issuance of each of the four certificate of
obligation issues provide for the establishment of a reserve fund to be increased
annually by two percent of the outstanding principal. Additionally, other
funds (such as the proceeds from the sale of the Downtown Transportation Terminal)
have been placed in this reserve account.
The current status of the four certificate of obligation issues is as follows:
Outstanding Reserve 1984-85
Principal Account Debt Service
Meacham Field Runway $ 630,000 $1,160,000 $238,350
Downtown Transportation
Terminal 1,200,000 1,300,000 60,000
Hyatt Parking Garage 2,000,000 250,000 130,000
Railroad Right-of-Way 1,000,000 - 79,375
Additional information will be provided upon request.
Sincerely,
Robert L. Herchert
City Manager
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ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS