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HomeMy WebLinkAboutOrdinance 27063-08-2024 (2)ORDINANCE NO.27063-08-2024 AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE CITY OF FORT WORTH AS "TAX ABATEMENT REINVESTMENT ZONE NUMBER ONE HUNDRED AND TEN, CITY OF FORT WORTH, TEXAS"; PROVIDING THE EFFECTIVE AND EXPIRATION DATES FOR THE ZONE AND A MECHANISM FOR RENEWAL OF THE ZONE; AND CONTAINING OTHER MATTERS RELATED TO THE ZONE. WHEREAS, pursuant to the City of Fort Worth's ("City") Tax Abatement Policy, which was adopted by the City Council to be effective on February 28, 2023 by way of Resolution No. 5709-02-2023 ("Tax Abatement Policy"), the City has elected to be eligible to participate in tax abatement and has established guidelines and criteria governing tax abatement agreements entered into between the City and various third parties, as authorized by and in accordance with the Property Redevelopment and Tax Abatement Act, codified in Chapter 312 of the Texas Tax Code ("Code"); WHEREAS, the City Council desires to promote the development of the area in the City more specifically described in Exhibit "A" of this Ordinance ("Zone") through the creation of a reinvestment zone for the purpose of supporting new business investment or expansion, as authorized by, and in accordance with Chapter 312 of the Code; WHEREAS, GE On Wing, Inc., or an Affiliate, ("Company") wishes to expend or cause to be expended at least $37.5 million in real property improvements for the development of Company's manufacturing facility to be located in the Zone, and Company intends to install new taxable tangible business personal property at the facility worth at least $12.5 million that will ultimately result in a combined real and personal property investment of at least $50 miIlion (collectively, the "Improvements"); WHEREAS, Company has applied for real property and business personal property tax abatements from the City in return for the installation of the Improvements in the Zone and compliance with certain other employment and spending requirements; WHEREAS, to foster economic development in the Zone, and the City, in general, it is anticipated that the City will enter a tax abatement agreement(s) for one or more Improvements within the Zone; WHEREAS, on September 12, 2023, the City Council held a public hearing regarding the creation of the Zone, received information concerning the Improvements proposed for the Zone, and afforded a reasonable opportunity for all interested persons to speak and present evidence for, or against, the creation of the Zone ("Public Hearing"), as required by Section 312.201(d) of the Code; WHEREAS, notice of the Public Hearing was published in a newspaper of general circulation in the City at least seven (7) days prior to the Public Hearing, which satisfies the requirement of Section 312.201(d)(1) of the Code; and Page I of 5 Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Ten WHEREAS, in accordance with Sections 312.201(d)(2) and (e) of the Code, notice of the Public Hearing was also delivered, in writing, to the presiding officer of the governing body of each taxing unit that includes in its boundaries real property that is to be included in the proposed Zone not later than the seventh day before the date of the public hearing. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. FINDINGS. That, after reviewing all information before it regarding the establishment of the Zone and after conducting the Public Hearing and affording a reasonable opportunity for all interested persons to speak and present evidence for, or against, the creation of the Zone, the City Council hereby makes the following findings of fact: I.I. The statements and facts set forth in the recitals of this Ordinance are true and correct. Therefore, the City has met the notice and procedural requirements established by the Code for creation of the Zone under Chapter 312 of the Code. 1.2. The Improvements proposed for the Zone, as more specifically outlined in the Public Hearing, are feasible and practical and, once completed, will benefit the land included in the Zone as well as the City for a period of more than ten (10) years, which is the statutory maximum term of any tax abatement agreement entered into under the Chapter 312 of the Code. 1.3. As a result of designation as a reinvestment zone, the area within the Zone is reasonably likely to contribute to the expansion of primary employment and to attract major investment in the Zone that will be a benefit to property in the Zone and will contribute to the economic development of the City. SECTION 2. DESIGNATION OF ZONE That the City Council designates the Zone described in the boundary description attached hereto as Exhibit "A" and made a part of this Ordinance for all purposes as a reinvestment zone for purposes permitting tax abatement as may be found desirable by the City or any other eligible taxing units for purposes authorized by and in accordance with Chapter 312 of the Code. This Zone will be known as "Tax Abatement Reinvestment Zone Number One Hundred and Ten, City of Fort Worth, Texas." This project is eligible for commercial/industrial tax abatements per Section 4 of the Tax Abatement Policy because it concerns a Target Industry. SECTION 3. TERM OF ZONE The Zone takes effect upon the effective date of this Ordinance and expires five (5) years thereafter. The Zone may be renewed by the City Council for one or more subsequent terms not to exceed five years, unless otherwise allowed by law. Page 2 of 5 Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Ten SECTION 4. SEVERABILITY If any portion, section, or part of a section of this Ordinance is subsequently declared invalid, inoperative, or void for any reason by a court of competent jurisdiction, the remaining portions, sections or parts of sections of this Ordinance will remain in full force and effect and shall not in any way be impaired or affected by such decision, opinion, or judgment. SECTION 5. IMMEDIATE EFFECT. That this Ordinance takes effect upon its adoption. ADOPTED AND EFFECTIVE: August 13 2024 APPROVED AS TO FORM AND LEGALITY: John B. Strong Senior Assistant City Attorney M&C: —�4497 ATTESTED BY: Janette Goodall City Secretary Page 3 of 5 Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Ten EXHIBIT "A" BOUNDARY DESCRIPTION OF ZONE 15101 FAA BLVD Being a 3.795 acre tract of land situated in the James J. Goodman Survey, Abstract 583, Tarrant County, Texas and being all of Lot 3R2, Block 313C, Area 3, Section 6, Centreport, an addition to the City of Fort Worth, Texas as recorded in Cabinet A, Slide 5930, Plat Records, Tarrant County, Texas and being a portion of F.A.A. Boulevard (a 92 foot R.O.W) and being more particularly described as follows: Beginning at found "x" in concrete at the Southwest corner of Lot 1 R, Block 313C, Area 3, Section 4, Centreport, an addition to the City of Fort Worth, Texas as recorded in Cabinet A, Slide 3684, Plat Records, Tarrant County, Texas and the Southeast corner of said Lot 3R2, Block 313C, and the North right-of-way line of said F.A.A. Boulevard; Thence South 00 degrees 10 minutes 23 seconds West, leaving said North right-of-way line, a distance of 46.00 feet to a point for corner, said point being in the centerline of said F.A.A Boulevard; Thence North 89 degrees 42 minutes 46 seconds West, along the said centerline, a distance of 159.48 feet to a point for corner, for the beginning of a tangent curve to the right having a radius of 1004.00 feet, a central angle of 20 degrees 41 minutes 13 seconds, and a long chord which bears North 79 degrees 20 minutes 15 seconds West, 360.53 feet; Thence continuing along said centerline and along said curve to the right, and arc distance of 362.50 feet to a point for corner; Thence North 20 degrees 59 minutes, 43 seconds East, leaving the said centerline, a distance of 46.00 feet to a found'/ inch iron rod for corner, said point being the Southwest corner of said Lot 3R2, Block 313C, and being the Southeast corner of Lot 3R1, Block 313C as recorded in Cabinet A, Slide 5930, Plat Records, Tarrant County, Texas, also being in the North right-of-way line of said F.A.A. Boulevard; Thence North 34 degrees 00 minutes 19 seconds East, leaving the said North right-of- way line, a distance of 356.01 feet to found 5/8 inch iron rod, for common corner of said Lot 3R1, Block 313C, and the Southwest corner of the Southwest Airmotive Subdivision, as recorded in Volume 388-90, Page 24, Plat Records, Tarrant County, Texas; Thence South 89 degrees 23 minutes 23 seconds East, along the South line of said Southwest Airmotive Subdivision, a distance of 299.44 feet to a found Y inch iron rod; Thence South 00 degrees 10 minutes 23 seconds West, a distance of 356.39 feet for the POINT OF BEGINNING and CONTAINING 165,320 square feet, 3.795 acres of land, more or less. 15225 FAA BLVD Being all that certain lot, tract or parcel of land situated in the James J Goodman Survey, Abstract No. 583, Tarrant County, Texas and being a part of that certain 88.783 acre tract of land conveyed to Harlan Ray and Winston Castleberry by Herbert W. Jester and wife according to the deed recorded in Volume 3115 at Page 573 of the Deed Records of Tarrant County, Texas and being all that same property being conveyed to Aviall of Texas, Inc., from Cooper Industries, Inc. as recorded in Volume 7224 at Page 1188 of the Deed Records of Tarrant County, Texas, also being known as Lot 1 in Block 1 of the SOUTHWEST AIRMOTIVE SUBDIVISION, an addition to the City of Fort Worth, Texas according to the plat thereof as recorded in Volume 388-90 at Page 24 of the Map Records of Tarrant County, Texas and being more particularly described by metes and bounds as follows: Beginning at a 518 inch iron rod with yellow plastic cap stamped RPS 1674 found for the Southeast corner of said Lot 1 of the SOUTHWEST AIRMOTIVE SUBDIVISION; Thence North 89 degrees 49 minutes 37 seconds West along the South line of said Lot 1 a distance of 732.50 feet to a 1 inch iron pipe found for corner; Thence North 0 degrees 05 minutes 05 seconds West along the West line of said Lot 1 a distance of 900.75 feet to an angle iron in concrete found for the Northwest corner of said Lot 1; Thence South 89 degrees 49 minutes 37 seconds East along the North line of said Lot 1 a distance of 732.50 feet a Y2 inch iron rod found for the Northeast center of Lot 1; Thence South 0 degrees 05 minutes 05 seconds East along the East line of said Lot 1 a distance of 900.75 feet to the PLACE OF BEGINNING AND CONTAINING 15.1468 ACRES OF LAND, more or less. City of Fort Worth, Texas Mayor and Council Communication DATE: 08/13/24 M&C FILE NUMBER: M&C 24-0687 LOG NAME: 17EDTARIZ110 SUBJECT (CD 5) Conduct Public Hearing and Adopt the Attached Ordinance Designating Tax Abatement Reinvestment Zone No. 110, City of Fort Worth, Texas, for Property Located at 15225 FAA Blvd and at 15101 FAA Blvd for Expansion of a Manufacturing Facility for GE On Wing Inc., or an Affiliate (PUBLIC HEARING - a. Report of City Staff: Cherie Gordon; b. Public Presentations; c. Council Action: Close Public Hearing and Act on M&C) RECOMMENDATION: It is recommended that the City Council: 1. Conduct a public hearing concerning the designation of Tax Abatement Reinvestment Zone No. 110, City of Fort Worth, Texas, for property located at 15225 FAA Blvd and at 15101 FAA Blvd for the expansion of a manufacturing facility for GE On Wing Inc., or an Affiliate; 2. Find that the intended improvements, which are set forth in more detail below, are feasible and practical and would be a benefit to the land to be included in Tax Abatement Reinvestment Zone No. 110 and to the City after the expiration of any tax abatement agreements; and 3. Adopt the attached ordinance designating Tax Abatement Reinvestment Zone No. 110, City of Fort Worth, Texas, pursuant to and in accordance with Chapter 312 of the Texas Tax Code. DISCUSSION: The proposed Tax Abatement Reinvestment Zone No. 110, City of Fort Worth, Texas (TARZ 110) is for the property located at 15225 FAA Blvd and at 15101 FAA Blvd in Fort Worth, Texas (Property). A more detailed description of the Property is included as Exhibit A to the attached Ordinance. GE On Wing Inc., or an Affliate, (Company) is considering leasing the Property to develop a manufacturing facility. The proposed project is anticipated to result in at least $50,000,000.00 in real and business persona[ property investment, along with the creation of at least 100 full-time jobs with a minimum salary of $70,000.00. Designating this area as a reinvestment zone allows the City the option to enter into a tax abatement agreement with the Company to help fcliate development within this area. As required by Chapter 312 of the Texas Tax Code, a public hearing must be conducted regarding the creation or expansion of a Reinvestment Zone. Notice of this hearing was delivered to the governing body of each affected taxing unit and published in a newspaper of general circulation at least seven days prior to this hearing. Pursuant to Chapter 312 of the Texas Tax Code, the area encompassing the proposed TARZ 110 meets the statutory criteria for designation as a Tax Abatement Reinvestment Zone beacuse the area is likely, as a result of the designation, to contribute to the retention or expansion of primary employment or to attract major investment in TARZ 110 that would be a benefit to the Property and that would contribute to the economic development of the City. Further, the proposed improvements and investments are feasible and practical and would be a benefit to the land to be included in the TARZ 110 and to the City after the expiration of any tax abatement agreement. The term of TARZ 110 will be five years from the date of adoption of the attached Ordinance and may be renewed for periods not to exceed five years each unless otherwise allowed by law. The proposed zone is located in COUNCIL DISTRICT 5. A Form 1295 is not required because: This MSC does not request approval of a contract with a business entity. FISCAL INFORMATION I CERTIFICATION: The Director of Finance certifies that approval of these recommendations will have no material effect on City funds. Submitted for City Manager's Office by William Johnson 5806 Originating Business Unit Head: Robert Stums 2663 Additional Information Contact: Cherie Gordon 6053