HomeMy WebLinkAboutOrdinance 26973-06-2024Ordinance No. 26973-06-2024
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE FORT WORTH PUBLIC IMPROVEMENT
DISTRICT 11 — STOCKYARDS FUND IN THE AMOUNT OF $100,000.00, FROM
AVAILABLE UNRESERVED FUND BALANCE AND APPROVE THE
OPERATING CASH FLOW ADVANCE IN THE AMOUNT NOT TO EXCEED
S100,000.00 FOR FORT WORTH STOCKYARDS, INC IN ACCORDANCE WITH
CHAPTER 372.023 OF THE TEXAS LOCAL GOVERNMENT CODE AND
SECTION V1.11 (A) I OF THE OPERATING PID POLICY; PROVIDING FOR A
SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF
PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT
HEREWITH; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
That the budget of the City of Fort Worth for Fiscal Year 2023-2024, as enacted by Ordinance 26453-09-
2023, as amended, is hereby further amended to make the following reallocations to amounts allocated to
various City departments for Fiscal Year 2023-2024 in the Budget of the City Manager, there shall also be
increasing estimated receipts and appropriations in the Fort Worth Public Improvement District I —
Stockyards Fund in the amount of $100,000.00, from available unreserved fund balance and approve the
operating cash flow advance in the amount not to exceed $100,000.00 for Fort Worth Stockyards, Inc in
accordance with Chapter 372.023 of the Texas Local Government Code and section vi.I 1 (a)i of the Operating
PID Policy,
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void
for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair
the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall
be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance 26453-09-2023 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of
said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
ALL
Mco Anas (Jul 9, 202410:07 COT)
Assistant City Attorney
ADOPTED AND EFFECTIVE: June 25, 2024
CITY SECRETARY
Jannette S. Goodall
City Secretary
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FORT WORTH
STOCKYARDS
* INC *
222 W EXCHANGE AVE
FORT WORTH, TX 76164
Date: May 23, 2024
From: Paul Paine, Fort Worth Stockyards, Inc.
To: Reginald Zeno, Chief Financial Officer
Via: Robert Sturns, Economic Development Director
Re: Operating Cash Flow (Seed Money) Advance for PID 11-Stockyards
Section VI. 11(a) of the O-PID policy authorizes and defines operating cash flow (seed money)
advance as:
a. Operating Cash Flow (Seed Money) Advance:
i. The Director of Economic Development may consider a written request for an advance of
operating cash flow (i.e., seed money) from a Management Company if (1) the advance is
requested as part of the establishment/creation of the O-PID or (2) when a new Management
Company begins managing an existing O-PID. An operating cash flow advance is subject to
approval by the Director of Finance and City Council.
Pursuant to Section 2.1(1) of City Secretary Contract Number 61465, between the City of Fort
Worth ("City") and Fort Worth Stockyards, Inc ("FWSI"), this memo serves as confirmation of
the agreed upon resolution regarding the disposition and repayment of seed money for three
months (May, June, and July 2024) in the amount not to exceed fund balance for PID 11-
Stockyards (PID).
On May 1, 2024, Fort Worth Stockyards, Inc. (FWSI) assumed management of PID 11—
Stockyards, taking over as the new management entity for the existing O-PID.
In accordance with Chapter 372.023 of the Texas Local Government Code and the O-PID Policy,
the City typically issues disbursements to the PID Management Company as reimbursements for
the prior month's expenses. The estimated average monthly reimbursement ranges between
$25,000.00 and $30,000.00, provided the entity maintains sufficient operating cash flow to
cover these expenses upfront.
The amount dispersed to FWSI will not exceed $100,000.
Fort Worth Stockyards, Inc. (FWSI) lacks sufficient operating cash flow to cover initial expenses
and is therefore requesting that Fort Worth PID 11- Stockyards provide 100% seed money
reimbursements for May, June, and July 2024. This advance will enable FWSI to establish its
Fort Worth Stockyards, Inc -,A- 222 W Exchange Ave., Fort Worth, TX 76164
finances to a point where it can independently sustain the funding of PID 11 expenses. FWSI
commits to reimbursing PID 11 for 100% of all expenses incurred during this period, with the
payment to be issued by check in August 2024.
Paul Paine, President
Fort Worth Stockyards, Inc.
City of Fort Worth:
By• Flea/� j,,'! r. C)41i�C_T;
Name: Reginald Zeno
Title: Chief Financial Officer
Date: Jun 7, 2024
Approval Recommended:
By: eo�stwns (J�„ 7, 20?4 , i 1F cel'j— r, 20?4 � i-le CVT,
Name: Robert Stu rns
Title: Economic Development Director
FORT WORTH STOCKYARDS, INC.,
a Texas nonprofit corporation:
By:
Paul Paine
President
Date: Jun 6, 2024
Fort Worth Stockyards, Inc -)er 222 W Exchange Ave., Fort Worth, TX 76164
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 06Q5/24 M&C FILE NUMBER: M&C 24-0551
LOG NAME;: 170PERATING CASH FLOW ADVANCE - PID 11
SUi BJEC�
(CD 2) Adopt Appropriation Ordinance Increasing Estimated Receipts and Appropriations in the Fort Worth Public Improvement District No.11 -
Stockyards Fund by $100,000.00, from Available Unreserved Fund Balance, and Approve a Request for Operating Cash Flow Advance in an
Amount Not to Exceed $100,000.00 for Fort Worth Stockyards, Inc. in Accordance with Chapter 372.023 of the Texas Local Government Code
and Section VIA 1 (a) of the Operating Public Improvement District Policy
RECOMMENDATION:
It is recommended that the City Council adopt attached ordinance increasing estimated receipts and appropriations in the Fort Worth Public
Improvement District 11 - Stockyards Fund in the amount of $100,000.00, from available unreserved fund balance, and approve the operating cash
flow advance in an amount not to exceed $100,000.00 for Fort Worth Stockyards, Inc in accordance with Chapter 372.023 of the Texas Local
Government Code and section VI.11 (a) i of the Operating Public Improvement District Policy.
DlscusSSION
The purpose of this Mayor & Council Communication (M&C) is to appropriate funds in the amount of $100,000.00, from available unreserved fund
balance and approve the written request for operating cash Row (seed money) advance for Fort Worth Stockyards, Inc. (FWSI).
In accordance with the City's Policy for Operating Public Improvement Districts (O-PID Policy), as a general rule, the City will not provide monetary
advances to a Management Company to carry out its management obligations. However, the Director of Economic Development may consider
written requests for such advances from a Management Company in certain circumstances. Section VI. 11 (a) of the O-PID Policy authorizes the
advance payment of operating cash flow, or seed money, as follows:
a. Operating Cash Flow (Seed Money) Advance:
i. The Director of Economic Development may consider a written request for an advance of operating cash flow (i.e., seed money) from
Management Company if (1) the advance is requested as part of the establishment/creation of the O-PID or (2) when a new Management
Company begins managing an existing O-PID, an operating cash flow advance is subject to approval by the Director of Finance and City Council.
On May 1, 2024, FWSI assumed management of Fort Worth Public Improvement District (PID) 11 — Stockyards, taking over as the new
Management Company for PID 11.
In accordance with Chapter 372.023 of the Texas Local Government Code and the O-PID Policy, the City typically issues disbursements to the PID
Management Company as reimbursements for the prior month's expenses. The estimated average monthly reimbursement ranges between
$25,000.00 and $30,000.00, provided the entity maintains sufficient operating cash flow to cover these expenses upfront.
FWSI lacks sufficient operating cash flow to cover initial expenses and is therefore requesting that PID 11 provide 100% seed money advance for
May, June, and July 2024 in an amount not to exceed $100,000.00. This advance will enable FWSI to establish its finances to a point where it can
Independently sustain the funding of PID 11 expenses. FWSI commits to reimbursing PID 11 for 100% of all expenses incurred during this period,
with the payment to be issued by check in August 2024.
The Director of Economic Development and the Director of Finance have given their approvals via the signed memo attached to this Mayor and
Council Communication.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL JNEORMATION / CERTIFICATION:
The Director of Finance certifies that funds are currently available in fund balance within the FWPID #11 - Stockyards Fund and upon approval of
the above recommendation and adoption of the attached appropriation ordinance, funds will be available in the FWPID #11 - Stockyards Fund.
Prior to an expenditure being incurred, the Economic Developement Department has the responsibility of verifying the availability of funds.
Submitted for Cily ManagerIs Office bv: William Johnson 5806
Originating Business Unit Head: Robert Stums 2663