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HomeMy WebLinkAboutContract 21825v3p,�_�_J STATE OF TEXAS COUNTY OF TARRANT CITY OF FORT WORTH AND TARRANT COUNTY, TEXAS AGREEMENT TO PARTICIPATE IN THE TAX INCREMENT REINVESTMENT ZONE NUMBER THREE, CITY OF FORT WORTH, TEXAS _. 10 THIS AGREEMENT is made and entered into by and between the City of Fort Worth, Texas ("City"), a Texas home -rule municipality, and Tarrant County, Texas ("Taxing Unit"). W I T N E S S E T H: WHEREAS, on December 19, 1995, the Fort Worth City Council approved Ordinance No. 12324, establishing Tax Increment Reinvestment Zone Number Three, City of Fort Worth, Texas ("TIF District"), in accordance with the Tax Increment Financing Act, as amended (V.T.C.A., Tax Code, Chapter 311) (the "Act"), to promote development and redevelopment in the downtown area of the City of Fort Worth through the use of tax increment financing; and WHEREAS, City and Taxing Unit wish to enter into an agreement defining the terms and conditions under which Taxing Unit will contribute a portion of its tax increment to the TIF District Tax Increment Fund; NOW THEREFORE, City and Taxing Unit, in consideration of the terms, conditions and covenants contained herein, hereby agree as follows: I. DEFINITIONS Terms not defined herein shall be construed as defined in the Act (hereinafter defined), or through normal usage if not defined in the Act. The following terms shall have the following meanings when used in this Agreement: "Act" shall mean V.T.C.A. , Tax Code, Chapter 311, the Tax Increment Financing Act, as amended. "Captured Appraised Value" shall mean the total appraised value of the property located within the TIF District for the year less the Tax Increment Base of the TIF Taxing Units. "Project Plan and Reinvestment Zone Financing Plan" shall mean the project and financing plan for the development or redevelopment of the TIF District. "TIF District" shall mean Tax Increment Reinvestment Zone Number Three, City of Fort Worth, Texas, established by the Fort Worth City Council Ordinance No. 12324, on December 19, 1995, a copy of which ordinance is attached hereto and marked Exhibit "A".L RECORD SECRETARY FT. WORTH, TEX. "TIF Taxing Units" shall mean those political subdivisions of the State of Texas authorized to impose ad valorem taxes on property located within the TIF District. "Tax Increment" shall mean the amount of property taxes levied and collected by a TIF Taxing Unit for the year on the Captured Appraised Value of taxable property located in the TIF District. "Tax Increment Base" shall mean the total appraised value of all property taxable by the TIF Taxing Units and located in the TIF District on January 1, 1995. "Tax Increment Fund" shall mean a fund consisting of all the Tax Increment deposits, all revenues from the sale of tax increment bonds or notes, revenues from the sale of any property acquired as part of the Project Plan and Reinvestment Zone Financing Plan, and other revenues to be used in the development or redevelopment of the TIF District. II. AGREEMENT TO DEPOSIT TAX INCREMENT Pursuant to a Resolution, duly adopted by its governing body, a copy of which is attached hereto as Exhibit "B", the Taxing Unit annually shall deposit into the Tax Increment Fund the amount as calculated by the method set forth in Exhibit "C". hereto. III. RESPONSIBILITY FOR ACTS City and Taxing Unit shall each be responsible for the sole negligent acts of their officers, agents, employees or separate contractors. In the event of joint and concurrent negligence of both City and Taxing Unit, responsibility, if any, shall be apportioned comparatively in accordance with the laws of the State of Texas, without however, waiving any governmental immunity available to City and Taxing Unit under Texas law and without waiving any defenses of the parties under Texas law. IV. ADMINISTRATION OF AGREEMENT This Agreement shall be administered on behalf of the City by the City Manager's Office of the City, or the designee thereof. V. DELIVERY ADDRESS Whenever this Agreement requires or permits any consent, approval, notice, request, proposal, or demand from one party to the other, the consent, approval, notice, request, proposal, or demand must be in writing to be effective and shall be delivered to the party intended to receive it at that party's address shown below: 2 If intended for City, to: Economic Development Director City of Fort Worth 1000 Throckmorton Street Fort Worth, Texas 76102 If intended for Taxing Unit, to: Tarrant County Commissioners Court 100 East Weatherford Fort Worth, Texas 76196-0609 or to such other address as either party may request, in writing, from time to time. VI. GOVERNING LAW AND VENUE This Agreement is made subject to the provisions of the Charter and ordinances of City, as amended; the Texas Constitution, codes, and statutes; and all other applicable state and federal laws, regulations and requirements, as amended. Venue for any cause of action arising hereunder shall lie exclusively in Tarrant County, Texas. VII. TERM This agreement is effective from January 1, 1996, through December 31, 2025. VIII. ENTIRE AGREEMENT/AMENDMENTS This Agreement embodies the complete understanding of City and Taxing Unit, and shall supersede all oral or written previous and contemporary agreements between the parties relating to matters herein. This Agreement may be amended, modified, or supplemented only by an instrument in writing executed by City and Taxing Unit, a copy of which will be provided to all TIF Taxing Units. Any amendment, modification or supplement which adversely affects any other TIF Taxing Unit must be consented to in writing by such TIF Taxing Unit. Any alterations, additions or deletions to the terms of this Agreement required by changes in federal, state or local law or regulations will be automatically incorporated into this Agreement without written amendment, and shall become effective on the date designated by such law or regulation. EXECUTED this the�.:Lh day of �/.�' _, 1996, by City, signing by and through its City Manager, and by Taxing Unit, signing by and through its duly authorized officials. 3 APPROVED AS TO FORM AND LEGALITY: CITY OF FORT WORTH, TEXAS LVL'U By: By: Wi iam W. Wo Bob errell Deputy City Attorney City Manager ATTEST: By: % A ice Church City Secretary Date 4 TAR T OUNTY, TEXAS By = ATom tgrif County Judge ORDINANCE NO. AN ORDINANCE DESIGNATING A CERTAIN AREA AS TAX INCREMENT REINVESTMENT ZONE NUMBER THREE, CITY OF FORT WORTH, TEXAS, ESTABLISHING A BOARD OF DIRECTORS FOR SUCH REINVESTMENT ZONE, AND OTHER MATTERS RELATED THERETO. WHEREAS, the City Council of the City of Fort Worth, Texas (the "City") was presented a petition submitted by the owners constituting at least fifty percent (50%) of the appraised value of the property hereinafter described requesting that said property be designated as a "reinvestment zone," as authorized by the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code, Vernon's Texas Codes Annotated (the "Act"); and WHEREAS, the City Council of the City desires to promote the development and/or redevelopment of the property described in such petition and within the City's jurisdiction, by the creation of a reinvestment zone as authorized by the Act; and WHEREAS, in compliance with the Act, the City called a public hearing to hear public comments on the creation of the proposed reinvestment zone and its benefits to the City and to the property in the proposed reinvestment zone; and WHEREAS, in compliance with the Act, notice of such public hearing was published in the Fort Worth Star -Telegram, a daily paper of general circulation in the City, such publication date being December 11, 1995, a date not later than seven (7) days prior to the date of the public hearing; and WHEREAS, notice of such public hearing, in required form and substance, was provided in writing to the governing body of each taxing unit that levies real property taxes in the proposed reinvestment zone, and each such taxing unit has adopted a E:<.r ib it "A' resolution wherein they have agreed, pursuant to Section 311.003(e) of the Act, to waive the requirement for sixty days notice prior to such public hearing; and WHEREAS, in compliance with the Act, the City made a formal presentation, in required substance and form, to the governing body of each county or school district that levies real property taxes in the proposed reinvestment zone; and WHEREAS, in compliance with the Act, the City prepared a preliminary reinvestment zone financing plan and sent a copy of the plan to the governing body of each taxing unit that levies taxes . on real property in the proposed reinvestment zone; and WHEREAS, the public hearing was convened at the time and place mentioned in the published notice, to wit, on the 19th day of December, 1995, at 10:00 a.m., at the Council Chambers in the City Hall of the City of Fort Worth, Texas, which hearing was then closed; and WHEREAS, the City, at such hearing, invited all owners of property located within the proposed reinvestment zone, representatives of all other taxing units, and any other interested persons and/or their attorneys to appear and contend for or against (1) the creation of the reinvestment zone, (2) the boundaries of the proposed reinvestment zone as described in the boundary description and depicted in the map, both of which together are attached hereto as Exhibit "A", (3) the concept of tax increment financing, and (4) the appointment of a board of directors for the proposed reinvestment zone; and WHEREAS, the proponents of the reinvestment zone offered evidence, both oral and documentary, in favor of all of the 2 foregoing matters relating to the creation. of the reinvestment zone, and opponents, if any, of the reinvestment zone appeared to contest matters relating to the creation of the reinvestment zone; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1: That the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. SECTION 2: That the City Council, after conducting such hearing and having heard such evidence and testimony, has made the following findings and determinations based on the evidence and testimony presented to it: (a) That the public hearing on adoption of the reinvestment zone has been properly called, held, and conducted and that notice of such hearing has been published as required by law. (b) That all taxing units levying real property taxes within the reinvestment zone received notice of the City's intention to create the reinvestment zone and of the public hearing and that all such taxing units, pursuant to Section 311.003(e) of the Act, have agreed by resolution to waive the requirement for sixty days notice prior to such public,hearing. (c) That all taxing units levying real property taxes within the reinvestment zone received a preliminary reinvestment zone financing plan from the City. (d) That the City timely made formal presentations to all counties and school districts that levy real property 3 taxes within the reinvestment zone as required by the Act, and that each taxing unit which levies real property taxes within the reinvestment zone was notified of each such presentation. (e) That creation of the proposed reinvestment zone and improvements made therein will significantly enhance the• value of all the taxable real property in the reinvestment zone and will be of general benefit for the City. (f) That the reinvestment zone, as described in Exhibit "A", hereof, meets the criteria for the creation of a reinvestment zone as set forth in the Act, including Section 311.005 thereof, in that: (1) It is a contiguous geographic area located wholly within the corporate limits of the.City; and (2) The boundaries of the reinvestment zone contain the same area as the area described in a petition submitted to the City Council by the owners of property constituting at least fifty percent (500) of the appraised value of the property in the area according to the most recent certified appraisal roll for Tarrant County, Texas. (g) That the total appraised value of all taxable real property in the reinvestment zone according to the most recent appraisal roll of the City, together with the total appraised value of taxable real property in all other existing reinvestment zones within the City, according to the most recent appraisal roll of the City, 4 does not exceed fifteen percent (15%) of the current total appraised value of taxable real property in the City and in the industrial districts created by the City, if any. (h) That the reinvestment zone does not contain more than fifteen percent (15%) of the total appraised value of real property taxable by Tarrant County or any school district. (i) That the development or redevelopment of the property in the reinvestment zone will not occur solely through private investment in the reasonably foreseeable future. SECTION 3: That the City hereby creates a reinvestment zone containing the area described in the boundary description and as depicted in the map, both of which are together attached hereto as Exhibit "A", and such reinvestment zone shall hereafter be identified as Tax Increment Reinvestment Zone Number Three, City of Fort Worth, Texas (the "Zone" or "Reinvestment Zone"). SECTION 4: That there is hereby established a board of directors for the Zone which shall consist of nine ( 9 ) members. The board of directors of the Reinvestment Zone shall be appointed and shall serve as follows: (a) Each of the Fort Worth Independent School District, Tarrant County Junior College District and Tarrant County may appoint one member of the board if such school district or county has approved the payment of all or part of the tax increment produced by the unit. The - member of the state senate in whose district the Zone is located (currently Mike Moncrief) is a,member of the 5 board (the "State Senate Member"), and the member of the state house of representatives in whose district the Zone is located (currently Doyle Willis) is a member of the board, except that either may designate another individual to serve in the member's place at the pleasure of the member. If the Zone is or shall become located in more than one senate or house district then the foregoing shall apply only to the senator or representative in whose district a larger portion of the Zone is located. The remaining members of the board shall be appointed by the City Council. A vacancy on the board shall be filled as set forth in the Act. If a taxing unit waives its right to appoint a member of the board, the City may then appoint such board member. The initial board of directors shall be appointed by resolution of the governing bodies of the City and the taxing units as provided herein within sixty (60) days of the passage of this ordinance or within a reasonable time thereafter. All members appointed to the board shall meet eligibility requirements as set forth in the Act. (b) The board members shall serve two year terms; provided, however, such terms shall be staggered as provided herein. The initial directors appointed by the City and the State Senate Member or the designee thereof shall serve initial terms commencing on the date of appointment and expiring on December 31, 1997, and all other directors shall serve initial terms commencing on the date of appointment and expiring on December 31, 1996. 0 Each year on or before December 31 the City Council shall designate a member of the board to serve as chairman of the board of directors for the next succeeding calendar year, and the board shall elect from its members a vice chairman and other.officers as it deems appropriate. The term of the chairman shall begin on January 1 of the year immediately following the year the City Council so designates the Chairman. (c) The board of directors shall make recommendations to the City Council concerning the administration of the Zone. It shall prepare and adopt a project plan and reinvestment zone financing plan for the Zone and must submit such plans to the City Council for its approval. The board of directors shall possess all powers necessary to prepare, implement and monitor such project plan for the Zone as the City Council considers advisable. The board of directors shall prepare an annual report on the status of the Zone and shall submit such report to the City as required in the Act. (d) The board of directors shall adopt goals for the participation of disadvantaged business enterprises with respect to the purchase of supplies, materials, services and equipment in accordance with and subject to the provisions of the Act. SECTION 5: That the Zone shall take effect on January 1, 1996, and that the termination of the Zone shall occur on December - 31, 2025, or at an earlier time designated by subsequent ordinance of the City Council in the event the City determines that the Zone 7 should be terminated due to insufficient private investment, accelerated private investment or other good cause, or at such time as all project costs and tax increment obligations, if any, and the interest thereon, have been paid in full. SECTION 6: That the Tax Increment Base for the Zone, which is the total appraised value of all taxable real property located in the Zone, is to be determined as of January 1, 1995, the year in which the Zone was designated a reinvestment zone. SECTION 7: That there is hereby created and established.a Tax Increment Fund for the Zone which may be divided into such accounts and subaccounts as may be authorized by subsequent resolution or ordinance, into which all Tax Increments, less any of the amounts not required to be paid into the Tax Increment Fund pursuant to the Act, are to be deposited. The Tax Increment Fund.and any accounts and subaccounts are to be maintained in an account at the depository bank of the City and shall be secured in the manner prescribed by law for Texas cities. In addition, all revenues from the sale of any obligations hereafter issued by the City secured in whole or in part from the Tax Increments, revenues from the sale of any property acquired as part of the tax increment financing plan, and other revenues to be dedicated to and used in the Zone shall be deposited into such fund, account or subaccount from which money will be disbursed to pay project costs for the Zone or to satisfy the claims of holders of such obligations issued for the Zone. SECTION 8: That the Zone is designated under Section 311.005(a)(5) of the Act. SECTION 9: That the City Manager and City Attorney are hereby authorized to execute and deliver for and on behalf of the City tax increment agreements with the Fort Worth Independent School District, Tarrant County, Tarrant County Hospital District, Tarrant County Junior College District and Tarrant County Water Control and Improvement District Number One pursuant to the provisions of Sections 311.008 and 311.013(g) of the Act. SECTION 10: That if any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Ordinance. SECTION 11: That this Ordinance shall take effect immediately from and after its passage in accordance with the provisions of the Charter of the City of Fort Worth and it is, accordingly so ordained. 'ay G n er Mayor 9 ATTEST: &�-") Alice Church City Secretary [SEAL] APPROVED AS TO By: FORM LEGALITY: m Wade Adkins City Attorney Adopted: Effective: 10 EXHIBIT "A" TAX INCREMENT REINVESTMENT ZONE NUMBER THREE (DOWNTOWN TIF) Beginning at a point of the intersection of a projection of the south ROW line of 3rd St. and the west ROW line of Henderson St., thence Northwesterly along the west ROW line of Henderson St. to a point where said line intersects with the south ROW line of Weatherford St., thence - Southwesterly along the south ROW line of Weatherford St. and what would be a projection of the said south line to a point where the projection of said line intersects with the west ROW line of Penn St., thence Northerly along the west ROW line of Penn St. which transitions to the south ROW line of Forest Park Blvd. (where Forest Park Blvd. curves into Weatherford St. and Belknap St.), thence Following the same Forest Park Blvd. ROW line as it curves to westerly, then to southwesterly to a point where said line intersects with the north ROW line of 5th St., thence Due west along a due west projection of the north ROW line of 5th St. to a point where this due west line intersects with the centerline of the Clear Fork of the Trinity River, thence Following the centerline of the Clear Fork of the Trinity River northeasterly to a point of intersection with the centerline of the West Fork of the Trinity River, thence Southeasterly, then easterly, and then northeasterly along the centerline of the West Fork of the Trinity River to a point of intersection with the projection of the north ROW line of Cummings St. (Cummings St. turns westward as depicted on the TAD tax maps), thence Easterly along the said projection and north ROW line of Cummings St. to a point where said line turns southeasterly along the east ROW line of Cummings St., thence Southeasterly along the east ROW line of Cummings St. to a point where said line intersects with what would be the projection of the north ROW line of Peach St., thence Northeasterly along the north ROW line of Peach St. to a point where said line intersects with the east ROW line of the Santa Fe Railroad, thence South -southeasterly along the east ROW line of the Santa Fe Railroad to a point of intersection with what would be a straight projection of the south ROW line of 6th St., thence Beginning at a point of the intersection of a projection of the south ROW line of 3rd St. and the west ROW line of Henderson St., thence Northwesterly along the west ROW line of Henderson St. to a point where said line intersects with the south ROW line of Weatherford St., thence - Southwesterly along the south ROW line of Weatherford St. and what would be a projection of the said south line to a point where the projection of said line intersects with the west ROW line of Penn St., thence Northerly along the west ROW line of Penn St. which transitions to the south ROW line of Forest Park Blvd. (where Forest Park Blvd. curves info Weatherford St. and Belknap St.), thence Following the same Forest Park Blvd. ROW line as it curves to westerly, then to southwesterly to a point where said line intersects with the north ROW line of 5th St., thence Due west along a due west projection of the north ROW line of 5th St to a point where this due west line intersects with the centerline of the Clear Fork of the Trinity River, thence Following the centerline of the Clear Fork of the Trinity River, northeasterly to a point of intersection with the centerline of the West Fork of the Trinity River, thence Southeasterly, then easterly, and then northeasterly along the centerline of the West Fork of the Trinity River to a point of intersection with the projection of the north ROW line of Cummings St. (Cummings St. turns westward as depicted on the TAD tax maps), thence Easterly along the said projection and north ROW line of Cummings St. to a point where said line turns southeasterly along the east ROW line of Cummings St., thence Southeasterly along the east ROW line of Cummings St. to a point where said line intersects with what would be the projection of the north ROW line of Peach St., thence Northeasterly along the north ROW line of Peach St. to a point where said line intersects with the east ROW line of the Santa Fe Railroad, thence South -southeasterly along the east ROW line of the Santa Fe Railroad to a point of intersection with what would be a straight projection of the south ROW line of 6th St., thence Southwesterly along the south ROW line of 6th St. to a point where said line intersects with the west ROW line of Commerce St., thence Northwesterly along the west ROW line of Commerce St. to a point where said line intersects with the south ROW line of 5th St., thence Southwesterly along the south ROW line of 5th St. to a point where said line intersects with the east ROW line of Main St., thence Southeasterly along the east ROW line of Main St. to a point where said line intersects with the south ROW line of 6th St, thence Southwesterly along the south ROW line of 6th St. to a point where said line intersects with what would be a straight projection of the east ROW line of Burnett St., thence Northwesterly along what would be a straight projection of the east ROW line of Burnett St. (west line of Block 101) to a point where said line intersects with the south ROW line of 5th St., thence Southwesterly along the south ROW line of 5th St. to a point where said line intersects with what would be a straight projection of the west ROW line of Burnett St., thence Northwesterly along the west ROW line of Burnett St. to a point where said line intersects with the south ROW line of 3rd St., thence Southwesterly along the south ROW line of 3rd St. to a point where said line intersects with the west ROW line of Henderson St., which is the point of beginning. Save and except that the following blocks within said perimeter boundary are omitted and excluded from the Reinvestment Zone: Blocks 45R, Courthouse A, Block 27, Block 24, Block 58, Block 57, Block 8R, Block 64, Block 86, Block 87 (Lots 1, 2A, and 2B), in the Fort Worth Original Town Addition, and Save and except that following area is omitted and excluded from the Reinvestment Zone: Beginning at a point where the north ROW line of Belknap St. intersects the east ROW line of Henderson St., thence northwesterly along the east ROW line of Henderson St. to a point where said line intersects the south ROW line of Peach St., thence northeasterly along said south ROW line to a point where said line intersects the south ROW line of Franklin St., thence easterly along the south ROW line of Franklin St. to a point where said line intersects the west ROW line of Taylor St., thence southeasterly along the west ROW line of Taylor Street to a point where said line intersects the north ROW line of Belknap St. thence southwesterly along the north ROW line of Belknap St. to point where said line intersects the east ROW line of Henderson St., which is the point of beginning, and Save and except that the following area is omitted and excluded from the Reinvestment Zone: Beginning at a point where the north ROW line of Belknap St. intersects the east ROW line of Taylor St., thence northwesterly along the east ROW line of Taylor St. to a point where said line intersects the south ROW line of Franklin St., thence easterly along the south ROW line of Franklin St. to a point where said line intersects the west ROW line of Houston St., thence southeasterly along the west ROW line of Houston St. to a point where said line intersects the north ROW line of Belknap St., thence southwesterly along the north ROW line of Belknap St. to a point where said line S\- Qi it r d. J1 Zone Boundary Major Government or Tax Exempt Omitted From Proposed Reinvestment Zone Exhibit The Proposed Reinvestment _Zone TAX INCREMENT REINVESTMENT ZONE NUMBER THREE (DOWNTOWN TIF) f% J a �jC/f I�BI T 13 .a >: :¢ s a: TARRANT COUNTY RESOLUTION SUPPORT FOR TERMINATION AND REESTABLISHMENT OF NORTH DOWNTOWN TIF WHEREAS, the general laws of the State of Texas authorize governmental taxing entities to join other taxing jurisdictions in the establishment of a reinvestment zone under the Tax Increment Financing Act, Chapter 311 of the Texas Tax Code (the "Act"), to provide incentive for the development and redevelopment of properties that might not be undertaken without such incentive; and WHEREAS, the Fort Worth City Council, pursuant to the Act, established City of Fort Worth Tax Increment Financing Reinvestment Zone Number One for an area of Downtown Fort Worth by adoption of Ordinance No. 11767 on December 13, 1994, and WHEREAS, owners of property with a majority of the appraiser) value of real property within the Tax Increment Financing Reinvestment Zone area have petitioned the City of Fort Worth to terminate Tax Increment Financing Reinvestment Zone Number One in 1995 and to establish, before the'end oi'` 1995, a new tax increment financing reinvestment zone in approximately the same area; and WHEREAS, the Tarrant County Commissioners Court recognizes that the termination of City of Fort Worth Tax Increment Financing Reinvestment Zone Number One, the establishment of a new tax increment financing reinvestment zone in approximately the same area, and the participation of Tarrant County in the newly established reinvestment zone will have the desired effect of redeveloping a portion of the downtown area to the benefit of all taxing units which levy taxes in the proposed reinvestment zone; and WHEREAS, the Texas Tax Code, Section 311.003 provides that notice of the date of a public hearing on the creation of a reinvestment zone "may be given later than the 60th day before the date of the public hearing if the governing body of each county and school district that levies real property taxes in the proposed zone agrees to waive the requirement." NOW, THEREFORE, BE IT RESOLVED: That the Tarrant County Commissioners Court hereby agues to waive the 60 day requirement of Texas Tax Code §311.003 for notice of a public hearing on the establishment of a new tax increment financing reinvestment zone for the downtown area. 2. That the Tarrant County Commissioners Court hereby declares its support for the termination of City of Fort Worth Tax Increment Financing Reinvestment Zone Number One and the establishment by the end of 1995 of a new tax increment financing reinvestment zone in approximately the same area. 3. That the Tarrant County Commissioners Court hereby declares its intent to contribute a portion of its tax increment, up to 100%, produced from property located in the newly established Downtown tax increment financing reinvestment zone. 4. That Tarrant County hereby declares its intent to appoint a member to the Board of Directors of the reinvestment zone and participate in the preparation of a project plan and reinvestment zone financing plan for the newly established Downtown tax increment reinvestment financing zone. Adopted this 5th day of December , 1995. TA(RRt�T COUNTY COMMISSIONERS COURT 1K ATTEST: I'om Vandergrifi County Judge County Clerk's Office EXHIBIT "C" I. TAXING UNITS' TAX INCREMENT PERCENTAGES A. Fort Worth Independent School District ("FWISD") 1. Commencing for the tax year 1996 and ending on the earlier of the tax year (a) 2003 or (b) in which bounds or other obligations secured by the Tax Increments are issued, FWISD will deposit into the Tax Increment Fund an amount equal to 1000 of its Tax Increment. 2. For the remaining term of this Agreement FWISD will deposit into the Tax Increment Fund an amount equal to 1000-- of the product of (x) the Captured Appraised Value within FWISD times (y) the lower of the tax rate per $100 valuation levied for the then current tax year by either the City of Fort Worth or FWISD (the "Alternate Rate".) B. City of Fort Worth, Tarrant County, Tarrant County Hospital District, Tarrant County Junior College District and Tarrant County Water Control and Improvement District Number One (collectively, the "Other Taxing Units".) 1. For each year during the term of this Agreement, the Other Training Units will deposit into the tax Increment Fund an amount equal to 1000 of their respective Tax Increments as defined in Section I. II. LIMITATIONS ON TAX INCREMENT DEPOSITS A. Deposit Limitation. The total amount of Tax Increments deposited annually into the Tax Increment Fund by all TIF Taxing Units shall not exceed $5,000,000 (the "Deposit Ceiling"), and the amount of each TIF Taxing Unit's Tax Increment deposit shall not exceed its pro rata share of the Deposit Ceiling. Each TIF Taxing Unit's-pro rata share is the product of $5,000,000 times a fraction, the numerator of which is each TIF Taxing Unit' s tax rate and the denominator of which is the sum of the tax rates of all TIF Taxing Units; provided, however, FWISD's tax rate for purposes of its numerator and for purposes of the denominator shall be the Alternate Rate if such rate is then in effect. By way of illustration, set forth on Schedule 1 hereto are examples of each TIF Taxing unit's pro rata share of the Tax Increment deposits which will be required in the event the Deposit Ceiling is reached. In accordance with Section 311.013 of the Act, the TIF Taxing Units shall not be required to pay tax increment into the tax increment fund of the Reinvestment Zone after three (3) years from the date the Reinvestment Zone has been created unless: 1 1. bonds have been issued for the Reinvestment Zone under Section 311.015 of the Act to finance the Project. 2. the City has acquired property in the Reinvestment Zone pursuant to the project plan, or 3. construction of Phase I of the Project pursuant to the project plan has begun in the Reinvestment Zone. B. Project Cost Limitation. The maximum amount of "project costs" (as defined in Section 311.002 of the Act) that may be paid through Tax Increment deposits directly and/or financed through the issuance of bonds or other obligations of the City secured by Tax Increment deposits is $50,000.00. C. Use of Funds 1. All amounts paid into the tax increment fund shall be used to pay direct project costs and/or the principal of and interest on bonds or other obligations, secured in whole or in part by tax increment deposits, issued to finance said project costs under the Act, and to pay direct costs properly chargeable under, generally accepted accounting principles to the administration of the TIF District; however, in no event shall any of the amounts paid into the tax increment fund be used to pay any overhead or administrative costs of City of other agency employees or officials for time spent or services rendered on behalf of the TIF District or with respect to the Project. 2. No funds will be expended or no bonds or other obligations, secured in whole or in part by tax increment deposits, of the TIF District will be issued to finance project costs of the Project until a final project plan and financing -plan has been prepared and adopted by the Board of -Directors of the TIF District and approved by the City Council of the City and (b) the. City has been furnished documentation and evidence satisfactory to the Board of Directors of the TIF District and the City to the effect that all final agreements and arrangements for the financing and construction of the Project have been completed and executed. OA SCHEDULE1 TIF CONTRIBUTION FOR 2000 CAPTURED APPRAISED VALUE (CAV)- 2000* _ TAXING ENTITY Tarrant County Tarrant Co. Hospital District Tarrant Co. Junior College Fort Worth Independent School District (FWISD) City of Fort Worth TOTAL TIF CONTRIBUTION FOR 2003 CAPTURED APPRAISED VALUE (CAV)- 2003* _ TAXING ENTITY Tarrant County Tarrant Co. Hospital District Tarrant Co. Junior College FWISD City of Fort Worth TOTAL TIF CONTRIBUTION FOR 2004 CAPTURED APPRAISED VALUE (CAV)- 2004* _ TAXING ENTITY Tarrant County Tarrant Co. Hospital District Tarrant Co. Junior College FWISD** City of Fort Worth TOTAL $151,139,422 TAX INCREMENT PRO RATA SHARE TAX INCREMENT TAX RATE PERCENT OF GENERATED OF TAX INCREMENT RETAINED BY PER $100 TOTAL RATE (RATE x CAV) DEPOSITS REQUIRED TAXING ENTITY $ 0.266603 8.95% $ 402,942 $ 447,260 $ - $ 0.239840 8.05% $ 362,493 $ 402,362 $ - $ 0.055460 1.86% $ 83,822 $ 93,041 $ - $ 1.455000 48.82% - $ 2,199,079 $ 2,440,945 $ - $ 0.963500 32.33% $ 1,456,228 $ 1,616,392 $ - $ 2.980403 100.00% $ 4,504,564 $ 5,000,000 $ - $231,566,301 TAX INCREMENT PRO RATA SHARE TAX INCREMENT TAX RATE PERCENT OF GENERATED OF TAX INCREMENT RETAINED BY PER $100 TOTAL RATE (RATE x CAV) DEPOSITS REQUIRED TAXING ENTITY $ 0.266603 8.95% $ 617,363 $ 447,260 $ 170,103 $ 0.239840 8.05% $ 555,389 $ 402,362 $ 153,027 $ 0.055460 1.86% $ 128,427 $ 93,041 $ 35,386 $ 1.455000 48.82% $ 3,369,290 $ 2,440,945 $ 928,345 $ 0.963500 32.33% $ 2,231,141 $ 1,616,392 $ 614,749 $ 2.980403 100.00% $ 6,901,609 $ 5,000,000 $ 1,901,609 $261,267,027 TAX INCREMENT PRO RATA SHARE TAX INCREMENT TAX RATE PERCENT OF GENERATED OF TAX INCREMENT RETAINED BY PER $100 TOTAL RATE (RATE x CAV) DEPOSITS REQUIRED TAXING ENTITY $ 0.266603 10.71 % $ 696,546 $ 535,583 $ 160,962 $ 0.239840 9.64% $ 626,623 $ 481,819 $ 144,804 $ 0.055460 2.23% $ 144,899 $ 111,415 $ 33,484 $ 0.963500 38.71% $ 2,517,308 $ 1,935,592 $ 581,716 $ 0.963500 38.71% $ 2,517,308 $ 1,935,592 $ 581,716 $ 2.488903 100.00% $ 6,502,683 $ 5,000,000 $ 1,502,683 NOTES: (1) Assumes 1995-1996 Tax Rates for all entities. (2)*=Taken from "Downtown TIF: Preliminary Reinvestment Zone Financing Studies", pg. 10; prepared by James Toal of KVG Gideon Toal; November, 1995. (3)**= FWISD Tax Rate in Year 2004 (and beyond) set at City rate. City of Fort Worth Texas Mayor and Council Communication DATE REFERENCE NUMB EFZ LOG NAME PAGE 04/23/96 I C-15419 02TIF 1 of 2 SUBJECT APPROVAL OF INCREMENT CONTRIBUTION AGREEMENTS AND APPOINTMENTS TO TIF BOARD OF DIRECTORS FOR TIF ZONE NUMBER THREE IN DOWNTOWN FORT WORTH RECOMMENDATION: It is recommended that the City Council: 1 . Authorize the City Manager to execute interlocal tax increment contribution agreements between the City of Fort Worth and Tarrant County, Tarrant County Hospital District, Fort Worth Independent School District, Tarrant County Junior College, and Tarrant County Water Control and Improvement District Number One, respectively; and 2. Contribute 100% of the increment generated by the City within Tax Increment Reinvestment Zone Number Three to the TIF Fund; and 3. Appoint five (5) individuals to represent the City on the TIF Board of Directors; and 4. Appoint Councilmember Kenneth Barr to serve as Chairman of the TIF Board of Directors. DISCUSSION: _ On December 19, 1995, the City Council approved M&C G-11350 (Ordinance #12324) which created Tax Increment Reinvestment Zone Number Three. This zone includes much of the downtown north of 6th Street. Each of the respective Tarrant County taxing entities have agreed to contribute 100% of their respective tax increments to the TIF Fund to support public improvements in the downtown TIF zone. The Fort Worth Independent School District (FWISD) has agreed to contribute 100% of its increment until the year 2003, after which FWISD's contribution will be equal to the contribution made by the City. Following execution of these agreements, all taxes levied on the increase in appraised value, beginning with the January 1, 1996 appraisal, will be contributed to the TIF Fund. Contributions will be made throughout the life of the zone, which is for 30 years. However, the zone may be dissolved before the thirtieth (30th) year if all bonds and other obligations of the zone have been satisfied. In no event shall tax contributions total more than $50 million during the life of the TIF. Regarding composition of the nine (9) member TIF Board of Directors, the Tax Increment Financing Act provides that the State Senator and State Representative whose districts include the zone area shall be members of the Board, except that they may, at their pleasure, designate another person to serve in their place. In addition, Tarrant County, the Fort Worth Independent School District (FWISD), and Tarrant County Junior College (TCJC) are each entitled to appoint one member of the Board. TCJC has agreed to waive its appointment. Therefore, the City of Fort Worth will appoint five persons to the Board. According to the TIF Act, each of the City's appointees must be at least 18 years of age and the owner (or be an employee or agent of the owner) of real property in the zone. It is recommended that the City Council appoint the following persons to the TIF Board for a two year term beginning -with the date of approval of this M&C. 0 Printed on Recycied Paper