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HomeMy WebLinkAboutIR 7442 Page I of 8 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7442 To the Mayor and Members of the City Council February 27 , 1990 r E)fo`, Subject: DOCUMENTS AND INFORMATION CONCERNING PROPOSED -673 FORT WORTH IMPROVEMENT DISTRICT NO. 3 The following information is provided to assist the City Council in their consideration of a petition to establish a third public improve- ment district . What follows is the background action by City Council and an analysis of certain sections of the petition. Issues identi- fied by city staff have been highlighted. BACKGROUND: At the January 2 , 1990 City Council meeting, the City Council adopted M&C G-8390 , which officially accepted a petition requesting establish- ment of Public Improvement District No. 3 . This action followed a briefing on the proposed district conducted during that afternoon's City Council workshop. The City Council directed the City Manager and the City Attorney to review the petition to determine whether the petition included the necessary signatures and met the other require- ments of Chapter 372 , Subchapter A, Section 372 .005 of the Local Government Code (the Public Improvement District Assessment Act) . On January 9, 1990 the City Council adopted M&C G-8405 , which declared the petition sufficient under Chapter 372 , Subchapter A, Section 372 .005 of the Local Government Code. This should be seen as step one in the process of reviewing the petition. Recommendation 2 of M&C G-8405 directed the City Manager to further analyze the petition and prepare certain documents and information and to file the same with the City Secretary as required by Chapter 372 , Subchapter A. What follows is in response to that action. STAFF ANALYSIS AND SUBMISSION OF DOCUMENTS AND INFORMATION: 1 General Nature of the P_r9posqd_jMp_K­ove�ments and/or special Supplemental Services State law permits an improvement district to provide improvements and/or services which are supplemental to those provided by the City. District 3 proposes only services . The general nature of the proposed special supplemental services are as follows : A. A technical improvements flan to provide technical assis- tance and consulting services for the engineering , design, and development of neighborhood improvements including landscaping, streetscaping , fountains , lighting , s,ignage , streets and access, sidewalks , pedestrian malls , off-street parking facilities , drainage improvements , parks and other similar projects permitted by State Law . B. A land-u's-e- p-lan to determine the future highest and best use of land along Lancaster and Vickery adjacent to the relocated 1-30 freeway. -ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS Page 2 of 8 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7442 To the Mayor and Members of the City Council February 27 , 1990 I-�u%ltx 07� Subject: DOCUMENTS AND INFORMATION CONCERNING PROPOSED f!7! FORT WORTH IMPROVEMENT DISTRICT NO. 3 C. An infrastructure plan to determine the infrastructure improvements necessary to support the land use plan. D. A cost estimate and financial plan to implement the land use plan and infrastructure plan, including a feasibility and economic benefit analysis and report concerning the creation of a tax reinvestment zone and the use of tax increment financing . E. A coordination plan setting forth the manner in which the District will coordinate with property owners , the City, and with the State Department of Highways and Public Transpor- tation. F. A marketing and advertising program to: 1. develop a marketing and advertising brochure describing plans for development of the District and promoting business relocation and investment ; 2 . distribute the marketing and advertising brochure to, among others , firms specializing in business relocation services , businesses considering relocation, the economic development staff of the City, the Fort Worth Chamber of Commerce, Downtown Fort Worth, Inc. , and to real estate brokers , developers and investors ; 3. make initial and follow-up contacts in pursuit of business relocations and other development of , and investment in, the District ; and, 4. generate positive publicity for the District . G. A manaqement__pro_qram to provide for the establishment , administration, management, and operation of the District . The proposed special supplemental services would be a supplement to the standard existing level of city improvements and/or services and would constitute an added increment to the improve- ments and/or services normally provided to the taxpayers generally. If the District is created, the City will continue to furnish or pay for the standard improvements and/or services in 00"L the District at the same level as they would be provided to the taxpayer generally . -ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS Page 3 of 8 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7442 '0,RTC P,0 To the Mayor and Members of the City Council February 27 , 1990 Sub ect: DOCUMENTS AND INFORMATION CONCERNING PROPOSED FORT WORTH IMPROVEMENT DISTRICT NO. 3 2 . Estimated Costs of the Special Supplemental Services The estimated costs of the supplemental services for the proposed District during the first year of operation, as provide within Section 4 of the petition, are as follows : A. Expense of establishing the district $120 ,000 E. Professional Services 71 , 600 C. Contract Services 15 ,000 D. Personnel 166,400 E. Management 11 ,000 F. Travel 6,000 G. Office Supplies 1,000 H. overhead 0 TOTAL ESTIMATED COST 1,000 001. A. Section 2 of the petition notes that "The City will be authorized to utilize the District to reimburse costs of previously completed special supplemental services and to undertake new improvement projects and/or special supple- mental services that confer a special benefit on a definable part of the City" . The petitioners are requesting that the District ' s budget be permitted to include previously com- pleted services . Those services must be directly related to the establishment of the district to be permitted under State law. B. Staff analysis of the petition determined that , based upon the 1989 certified tax roll ' s value of land liable for assessment as itemized in the petition and a proposed assessment rate of $0 . 43 per $100 of assessed valuation, the total private property assessments for the first year would equal _$,96 _9�8,,_70 or approximately 25% of the estimated C. Any additional improvements and/or special supplemental services in subsequent years and their estimated costs will be determined in the five-year service plan which must be adopted by the City Council and can be amended from time to D. The budget needs to include a City administration fee to help offset the City' s costs of administration , notice of public hearings and assessments , and collection of assess- merits . The discussion section of M&C G-8390 noted that this fee would be 1% of the district ' s annual budget . ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7442 Olt, To the Mayor and Members of the City Council February 27 , 1990 �,ubtxo Subject: DOCUMENTS AND INFORMATION CONCERNING PROPOSED FORT WORTH IMPROVEMENT DISTRICT NO. 3 3. Boundaries the boundary of the proposed improvement district is generally Lancaster, 1-35, Vickery and Henderson. More specifically, it is as follows: Beginning at the southeast corner of West 13th and Monroe St . , then eastwardly along the south right-of-way line of 13th to the alleyway 80 feet west of Throckmorton St . , then southeastwardly along the west right-of-way line of the alleyway west of Throck- morton to Lancaster Ave. , then eastwardly along the south right-of-way line of Lancaster to the east point of lot 4 of the Frank Kent Subdivision (approximately 1230 feet east of Main St . ) , then southwardly to Vickery Blvd. along the west line of the railroad right-of-way, then westwardly along the north right-of-way line of Vickery to Jennings Ave. , then southwardly along the west right-of-way line of Jennings to Broadway St . , then westwardly along the north right-of-way of Broadway to 00,11 Hemphill St . , then northwardly along the east right-of-way 'line of Hemphill to Jarvis St . , then- westwardly along the north right-of-way line of Jarvis to Lipscomb St . , then northwardly along the east right-of-way of Lipscomb to Vickery Blvd. , then westwardly along the north right-of-way line of Vickery to the railroad tracks, then northwardly along the east right-of-way line of Henderson St. , to the south line of Block 11 of the Texas and Pacific Railway Addition, then northeastwardly along the south line of Block 11 to the south line of block 15 of the Texas and Pacific Railway Addition, then northeastwardly to Lancaster Ave. through block 15 along the southeasterly line of the State of Texas right-of-way for 1-30, then eastwardly along the south right-of-way line of Lancaster to Monroe St . and then northerly along the east right-of-way line of Monroe to the point of A map of the area is shown on Attachment A. A. The boundaries as proposed include a city-owned parking lot at the northwest corner of Jennings and Lancaster. Because the City would be assessed for this land, it is staff ' s recommendation that the City' s parking lot be excluded from the District . When the district is established, the boundaries should not include the parking lot . -ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS Page 5 of 8 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7442 Aj V�pokry,�N To the Mayor and Members of the City Council February 27 , 1990 Subject: DOCUMENTS AND INFORMATION CONCERNING PROPOSED FORT WORTH IMPROVEMENT DISTRICT NO. 3 4. Method of Assessment Section 6 of the petition outlines the proposed method of assessment as follows : A. A Service Plan will be approved and adopted by the City Council for a period of not less than five years . The plan will be reviewed and updated annually by the City Council to determine the annual budget for improvements and/or special supplemental services within the District . B. The cost of improvements and/or special supplemental services will be assessed against the real property within the District according to the value of the property, including improvements, as determined annually by the City Council . The City Council resolution authorizing estab- lishment of the District shall contain a provision which states that : 1. During the initial four-year term of the District, annual assessments against property in the District , including improvements, shall not exceed an amount equal to $0 . 43 per $100 of the value of such property and improvements as determined by the City Council . 2 . Property, including improvements , within existing or proposed transportation rights-of-way (e.g. for public streets, highways, and railroads) are deemed to receive no special benefit from, and will not be assessed for, the improvements and/or special supplemental services. 3. Property, including improvements, that will be taken or condemned because of their proximity to proposed trans- portation rights-of-way are deemed to receive no special benefit from, and will not be assessed for, the improvements and/or special supplemental services . 4 . Ground lease interests, including improvements, where the unexpired term of the lease is less than 15 years are deemed to receive no special benefit from, and will not be assessed for, the improvements and/or special supplemental services . op� D. The amount of assessment for each property owner may be adjusted following the annual review of the Service Plan. -ISSUED BY THE CITY MANAGER — FORT WORTH, TEXAS Page b of 8 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7442 Opp To the Mayor and Members of the City Council February 27 , 1990 11 0 DOCUMENTS AND INFORMATION CONCERNING PROPOSED ®rDrxol�'�- Subject: FORT WORTH IMPROVEMENT DISTRICT NO. 3 ISSUES: A. Items 4.B.2 and 4.B.3 above were included to exempt from assessment those properties or parts of properties which will be purchased by the State as part of the 1-30 reloca- tion project and related City street improvements . There is some question as to when those purchases will be made. Currently there is a restraining order on the 1-30 project . An environmental analysis of the proposed new alignment is under way . Until the Environmental Impact Statement is approved, the 1-30 project remains an issue of the courts. Once the court allows the State to proceed, then surveys, appraisals and acquisitions can begin. Currently, only estimates of what properties or parts of properties will be affected by the 1-30 project are available. Once the State and the court agree on a final alignment for 1-30, adjust- ments to the assessment roll will be made based upon the actual rightof-way acquisitions and deed conveyance. B. For purposes of evaluating the sufficiency of the petition and the estimated total annual assessments, the values of those properties or parts of properties which, based upon the current estimates, will be purchased by the State for the 1-30 project were not included in the land values liable for assessment itemized within the petition. C. Because assessments for public improvement districts have been collected in the same manner as taxes, the City has used the values reported on the TAD certified tax rolls for assessment rolls . Land acquired by the State will appear on the TAD rolls after title has been conveyed. If staff use the TAD rolls for assessment rolls, the City Council would be asked to reduce the assessments on individual parcels identified to be purchased for the proposed 1-30 . D. The State acquisition of property for the 1-30 project will include property acquired on the City' s behalf for two future street projects. These projects are the Hemphill Street tunnel and the widening of Daggett Street . E. District Engineer J . R. Stone has submitted a letter to the Mayor dated 2/15/90 requesting the City to consider deferring approval of this District until the required right-of-way for the 1-30 project has been appraised (Attachment B) . ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS Page 7 of 8 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7442 ,PT111, VORP To the Mayor and Members of the City Council February 27 , 1990 4 tl Subject: 1613 DOCUMENTS AND INFORMATION CONCERNING PROPOSED FORT WORTH IMPROVEMENT DISTRICT NO. 3 5. The Proposed Apportionment of Costs Between the District and the City as a Whole. It is as follows: A. The cost of the improvements and/or special supplemental services will be paid from special assessments levied against property within the District in accordance with the assessment methodology described above. B. Section 7(b) (10) of the petition states that the City of Fort Worth would be responsible for the payment of assess- ments on City-owned property. C. The City Council will be authorized to establish, by ordinance, reasonable classifications and formulas for the apportionment of costs between the City and the property to be assessed and to establish the methods for assessing special benefits for various classes of improvements and/or special supplemental services . ISSUES: A. With respect to 5.13 above, the Tarrant County Appraisal District's records show the City owning four parcels of property within the proposed Improvement District . Two of those parcels are rights-of-way and would be exempt from assessment under the conditions set forth in 4.B, 2 above. The other two parcels constitute the City's parking lot on the north side of Lancaster between Monroe and Jennings Streets (the "zipper lot") . TAD does not list a value for these two accounts, but when a value is established, the City would be liable for assessment under the terms of the petition. It is staff 's recommendation that the "zipper lot" be excluded from the district . B. It is unclear what the assessment status would be of the land acquired by the City in conjunction with the State' s acquisition of land for the 1-30 project . It is possible that this land would be included under 4.B. 2 above as land within proposed transportation rights-ofway , and thus would be exempt from assessment . - ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7442 To the Mayor and Members of the City Council February 27 , 1990 0,-y Do�'� Subject: DOCUMENTS AND INFORMATION CONCERNING PROPOSED 1973 FORT WORTH IMPROVEMENT DISTRICT NO. 3 6. Enhancement Reports An enhancement report has been done to determine that the probable maximum benefits to be conferred on each tract in the proposed district because of the improvements and/or services shall be greater than the amount of the assessment against such tract and the owners thereof . This is shown in more detail in Attachment C. 7. Term of District The petition calls for the City Council Resolution authorizing establishment of the District to provide that the District will exist for four years immediately following adoption of such resolution unless property owners in the District petition the City Council for continuation of the District or unless the District is sooner terminated as provided by law. RECOMMENDATION: It is recommended that the City Council defer further action on the proposed District until the required right-of-way for the 1-30 realignment project has been appraised. The original of the above report was filed with the City Secretary of the City of Fort Worth on February 22, 1990 . /V) David A. Ivory 610VCity Manager DAI : ry Attachments ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS �J.l _ '` .; �-'•^�`'__- - _1`r n \ �_ �N�� o � l� � _ to ice., __- _ � - �-- :%� t'> rii .!.` 1 4:' j £ "R" f "yy! rh.. _f.• R L _} .wZ JJJ N .� h` 1f1r�•t�± i.. r;r '�I ..� 37 lY�c ti-t ul G �-'2-6i, l+d.tpry r';• rre. n Loll ,:- t',tF rEr".• r {('�r.I' ,r ,t y # sin ( W o� r r w n Y r< r F as } r ! t t t z E. Fr. ' o IjJ•E — + r' r i T ,,1'it R., rl�^._.`fy}: c �'. 1 7� I` '�. Ya +___-_- �-rr y .-•'1 rlt�t -�'•�- I F 'Si � T R R i '�_ #� �f 4'1 V- (. I n.a . M � � M �: •T. <h ��.3 '1 r M( ' .v I.r '� yiri' # t r It K r+jhY r E . r Tn _c T E r ,:r n - HrzM- s rt r ,'h r,�y{t('! h of t♦ „ r UJ.1� t tIY 3YtIR Fi t _ �t t = X«{. R f. 2 1 V t DTAAUIf� t •� `� Or r CD s 7x I ltIUI3� � Ft. rF SALVEBTOM was"m TN tt► t r •Sr t'- �i a r#�;r�T r :r c• - � ��Y �'y?`�\l O p t R4• a. ..• .. TR R Y } x A r w41, ( ST. r Tt1 i Dom gat,R t'4 * �• M or F� �' _ e ` F -r ^ . _ 'tt1. I __ � •a. � � p i 't'tf�4 i a\ i,' .ti '�. M rxrcw p. —7 IS 4 tsI»R u t C� f i laws R. �r �` 5 f ry `'l' �'\ ,.ld ` 1.� /I' t/• --IR.°,' Rw.t. �•.� ,,,. _ - -_; 11 ± nr w . ..., r i r�r � � ' .. r t�° — wl.; ta.t �,,,` � . ..I c' Y' ,• r i u i`i y ' `• f \ '` 1�.•' ir ,�� �Li' - 1(J r n +s=art MY DO Is I a 7, INTERSTATE 35H Attachment B COMMISSION STATE DEPARTMENT OF HIGHWAYS ENGINEER-DIRECTOR ROBERT H.DEDMAN,CHAIRMAN AND PUBLIC TRANSPORTATION ARNOLD W.OLIVER,P.E. BAY STOKER,JR. P.O.BOX 6868 WAYNE B.DUDDLESTEN FORT WORTH,TEXAS 761IS-OW (917}292-650 February 15, 1990 CONTACT: Honorable Bob Bolen, Mayor City of Fort Worth 1000 Throckmorton Street Fort Worth, Texas 76102 Dear Mayor Bolen: Thank you for sending us a copy of the request for establishing Fort Worth Public Improvement District No. 3. The project has potential to substan- tially improve the aesthetics of the Vickery area and to enhance the gateway to the near South Side. OP1111 I do not want to appear to be meddling in the City's business, but I have a concern that property values could escalate if the plan is implemented before we appraise the property for 1 30 near Vickery. I observed that one objective of the plan is to maximize area property values. As you are aware, the Department will lose the Interstate funding originally pro- grammed for 1 30 expansion since the project is being moved from the original alignment and the estimated construction cost has increased over $36,000,000 due to new location. If now we are faced with spending more money for necessary right of way for property in an improvement district, I fear that the construction of 1 30 will face a long, drawn out construction sequence of smaller projects due to funding constraints. Would it be appropriate to defer approval of Fort Worth Public Improvement District No. 3 until the required right of way is appraised? We feel that the Environmental Impact Statement will be approved in six to nine months and then we will start the appraisals. Again, we do not wish to intrude into your sphere of authority nor appear to be obstructionists, but we do have a concern of increasing the cost and stretching out the construction time of 130 in downtown Fort Worth. Sincerely, J. R. Stone, P.E. FEB 16 19% District Engineer JRS:bmc Attachment C Page 1 of 5 z z z z 0 0 0 Ili! US Ln In In W M wx W (r W I% u at i,- C I- ¢ r- C I- ¢ to rl CL 0 0. 00. or_ 0 CL IzOzr zr zr zr L 0 0 *0 Z) i 1t 1 (L z Q u AU tau 0u 4f- z z z '. (0 It -V C w-.1 w-j w -i w -.1 C-> it 0 0 •C w 17 0 0 -.1 -.1 -j 0 aj CL 4- 111 w LU:) w=) Itl:) 00 00 00 00 0 M E rL C '1! 0 6 W LL Lu U. H LL LL In ra 0 It N nj -v M 0 (n C till 0 r, M— — Ir Cr Cr Cr 'T (1 - * 0 * 0 * 0 * 0 U. I.I. LL U. 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