HomeMy WebLinkAboutIR 24-1906INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 24-1906
To the Mayor and Members of the City Council October 8, 2024
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SUBJECT: AMENDMENT TO TAX INCREMENT REINVESTMENT ZONE
eIVIA NUMBER THREE (DOWNTOWN TIF) AND TAX INCREMENT
REINVESTMENT ZONE NUMBER EIGHT (LANCASTER TIF)
TERM AND PROJECTAND FINANCING PLANS
The purpose of this Informal Report is to provide the City Council with an overview of an upcoming
proposal to amend the respective term (the "Terms") and Project and Financing Plans (the "Plans")
of Tax Increment Reinvestment Zone Number Three (the "Downtown TIF") and Tax Increment
Reinvestment Zone Number Eight (the "Lancaster TIF") (collectively, the "TIFs") that have/will be
considered for approval by the board of directors (the "Boards") of the TIFs on October 9, 2024 and
October 2, 2024 respectively.
On December 19, 1995, the City Council adopted Ordinance No. 12324 designating the Downtown
TIF for a term of thirty years. On September 17, 1998 the Board of Directors (Board) of the
Downtown TIF adopted Project and Financing Plans for the Downtown TIF (Plans), which were
subsequently amended on four occasions to reflect boundary changes, certain changes to project
eligibility and priorities, and to reflect changes to certain caps on TIF revenue and expenses. The
term of the Downtown TI F is set to expire on December 31, 2025.
On December 9, 2003, the City Council adopted Ordinance No. 15775 designating the Lancaster
TIF for a term of twenty years. On January 22, 2004 the Board of Directors (Board) of the Lancaster
TIF adopted Project and Financing Plans for the Lancaster TIF (Plans), which were subsequently
amended on six occasions to reflect certain changes to project eligibility and priorities and to reflect
a reduction participation rates for the taxing units that participate in the Lancaster TIF. The term of
the Lancaster TIF is set to expire on December 31, 2024.
On October 2, 2024, the Board of the Lancaster TIF adopted a resolution approving updates and
amendments to the Plan based on a desire to extend the term of the TIFs to support additional
projects that are necessary to the continued success of each district. In order for these projects to
be implemented, the Board recommended that the terms of the TIFs be extended so as to terminate
on December 31, 2044. On October 9, 2024, the Board of the Downtown TIF will consider taking
the same action.
These measures were taken in recognition of the need for increased capacity by the TIFs to support
further development and several key projects that are generally located along boundaries shared
by the two districts. In particular, the recent activity and long-term impact of the Texas A&M Fort
Worth campus and innovation hub present a need for additional TIF capacity to support public
improvements in that area. Other potential projects located in the TIFs, include certain public
improvements near the Fort Worth Convention Center and Texas A&M Campus, public
infrastructure needs including but not limited to increased public parking, pedestrian safety, and
various transportation, streetscape, and utility improvements that may be required throughout both
TIFs. The total estimated costs of proposed TIF projects is equal to approximately $361 million.
As part of the proposed term extensions and amended Plans, it is recommended that participation
rates be generally lowered across the two TIFs among those taxing units proposed for continued
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 24-1906
To the Mayor and Members of the City Council October 8, 2024
aT� Page 2 of 2
x�
SUBJECT: AMENDMENT TO TAX INCREMENT REINVESTMENT ZONE
eIVIA NUMBER THREE (DOWNTOWN TIF) AND TAX INCREMENT
REINVESTMENT ZONE NUMBER EIGHT (LANCASTER TIF)
TERM AND PROJECTAND FINANCING PLANS
participation. In the case of the City, this results in a proposed reduction in the City's participation
rate for the Downtown TIF from 60% to 50% (the City's participation rate would remain at 50% for
the Lancaster TIF). All other participants are proposed to participate at a rate of 35% for the
remaining term of the TIFs as amended. In addition to the City, it is proposed that Tarrant County,
the Tarrant County College District, and the Tarrant Regional Water District continue their
participation in the TIFs for the extended term at the recommended participation rates. The total
projected revenue for the two TIFs (combined) is estimated to be equal to approximately $361
million.
Before the extension of the term or the amended Plan can take effect and be considered by the
other taxing districts, state law requires the City Council approve the amended term and the
amended Plans by Ordinance after holding a public hearing at which interested persons may speak
for or against the proposed amendments.
A public hearing and an M&C to adopt an ordinance to extend the term and to amend the Plans for
each TIF will be placed on the agenda for the October 151" City Council meeting. If you have any
questions concerning this information, please contact Robert Sturns, Economic Development
Director at 817-392-2663 or robert.sturns@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS