HomeMy WebLinkAboutOrdinance 27266-11-2024ORDINANCE NO.27266-10-2024
AN ORDINANCE EXTENDING THE TERM OF, AND APPROVING AN
AMENDED PROJECT AND FINANCING PLAN FOR, TAX INCREMENT
REINVESTMENT ZONE NUMBER EIGHT, CITY OF FORT WORTH,
TEXAS (LANCASTER TIF); MAKING VARIOUS FINDINGS RELATED
TO SUCH AMENDED PLAN; PROVIDING FOR SEVERABILITY; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, as authorized by Chapter 311 of the Texas Tax Code (the "Act") and
pursuant to Ordinance No. 15775, adopted by the City of Fort Worth, Texas (the "City") by and
through the Fort Worth City Council (the "City Council") on December 9, 2003, the City created
Tax Increment Reinvestment Zone Number Eight, City of Fort Worth, Texas (the "TIF") for a
term of twenty years expiring on December 31, 2024 (the "Term") and establishing a Board of
Directors (the "Board");
WHEREAS, on January 22, 2004 the Board adopted a Project and Financing Plan for the
TIF (the "Plan"), as required by Section 311.011(a) of the Act; and
WHEREAS, in accordance with Section 311.011(d) of the Act, on October 6, 1998 the
City Council approved the Plan pursuant to Ordinance No. 13603;
WHEREAS, as authorized by Section 311.011(e) of the Act, on January 27, 2004, and
pursuant to Board Resolution 2005-02, the Board amended the Plan, which amendment was
approved by the City Council on March 29, 2005, pursuant to Ordinance No. 16343-03-2005;
WHEREAS, as authorized by Section 311.011(e) of the Act, on June 29, 2006, and
pursuant to Board Resolution 2006-04, the Board amended the Plan, which amendment was
approved by the City Council on August 15, 2006, pursuant to Ordinance No. 17100-08-2006;
Ordinance Extending the Term of, and Approving Amendment to Project and Financing Plan for, Page 1
Tax Increment Reinvestment Zone Number Eight, City of Fort Worth, Texas
WHEREAS, as authorized by Section 311.011(e) of the Act, on December 5, 2007, and
pursuant to Board Resolution 2007-01, the Board amended the Plan, which amendment was
approved by the City Council January 29, 2008, pursuant to Ordinance No. 17964-01-008;
WHEREAS, as authorized by Section 311.011(e) of the Act, on June 23, 2011, and
pursuant to Board Resolution 2011-01, the Board amended the Plan, which amendment was
approved by the City Council on August 8, 2011, pursuant to Ordinance No. 19835;
WHEREAS, as authorized by Section 311.011(e) of the Act, on December 3, 2014, and
pursuant to Board Resolution 2014-04, the Board amended the Plan, which amendment was
approved by the City Council on January 6, 2015, pursuant to Ordinance No. 21611-01-2015;
WHEREAS, as authorized by Section 311.011(e) of the Act, on October 2, 2024, the
Board amended the Plan and approved updates to the PIan to extend the term of the TIF to support
additional projects that are necessary to the continued success of the TIF;
WHEREAS, the Plan, as amended by the Board on October 2, 2024 is attached hereto as
Exhibit "A," and it is recommended by the Board that the Plan, as amended, be approved by the
City Council; and
WHEREAS, the membership and composition of the Board may be changed by ordinance
of the municipality creating the TIF according to Section 311.007 and Section 311.009 of the Texas
Tax Code.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
Section ].
FINDINGS.
That the City Council hereby makes the following findings of fact:
Ordinance Extending the Term of, and Approving Amendment to Proj cot and Financing Plan for, Page 2
Tax Increment Reinvestment Zone Number Eight, City of Port Worth, Texas
1.1 The statements and facts set forth in the recitals of this Ordinance are true and correct.
1.2 That the Plan, as amended, includes all information required by Sections 311.011(b) and
(c) of the Act.
1.3 That the PIan, as amended, is feasible and the Plan conforms to the City's master plan.
1.4 That on October 29, 2024, but prior to the adoption of this Ordinance, the City Council
held a public hearing on the Plan, as amended, and afforded a reasonable opportunity for
interested persons to speak for or against designation of the TIF and approval of the Plan,
as amended, as well as for owners of property located in the TIF to protest inclusion of
their property in the TIF (the "Public Hearing"), as required by Section 311.011(e) of the
Act.
1.5 That notice of the Public Hearing was'published in a newspaper having general circulation
in the City on October 11, 2024, which satisfies the procedural requirement of
Section 311.003(c) of the Act that notice of the Public Hearing be so published at least
seven (7) days prior to the date of the Public Hearing.
Section 2.
EXTENSION OF TERM.
That based on the findings set forth in Section 1 of this Ordinance, the Term of the TIF is
hereby amended to terminate on the earlier of December 31, 2044, or the date on which all project
costs, tax increment bonds and interest on those bonds, and other obligations have been paid in
full.
Section 3.
APPROVAL OF AMENDED PLAN.
Ordinance Extending the Term of, and Approving Amendment to Project and Financing Plan for, Page 3
Tax Increment Reinvestment Zone Number Eight, City of Fort Worth, Texas
That based on the findings set forth in Section I of this Ordinance, the Plan, as amended,
is hereby approved.
Section 4.
REDUCTION OF PARTICIPATION RATE.
That beginning with tax year 2024, the City of Fort Worth will contribute fifty percent
(50%) of the City's tax increment to the TIF Fund, as defined by Section 311.012(a) of the Code.
Section 5.
DELIVERY OF AMENDED PLAN TO TAXING ENTITIES.
That a copy of the Plan, as amended, has been delivered to the governing body of each
i
taxing unit that taxes real property Iocated in the TIF.
Section 6.
BOARD COMPOSITION.
That based on the findings set forth in Section I of this Ordinance, the Board will as of
adoption of this Ordinance and for the remaining duration of the Term consist of nine (9) members,
including one member each for a taxing unit authorized under agreement to participate in the TIF
for the remaining duration of the term of the TIF, as amended and as appointed by resolution. 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 or if a taxing unit is no longer participating in the TIF for reasons relating to the specific
terms or duration of their respective participation agreement (including any limitations on lifetime
contributions of incremental tax revenue to the TIF), the City may then appoint such board
member.
Section 7.
Ordinance Extending the Term of, and Approving Amendment to Project and Financing PIan for, Page 4
Tax Increment Reinvestment Zone Number Eight, City of Fort Worth, Texas
SEVERABILITY.
That 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 shall be and remain in full force and effect
and shall not in any way be impaired or affected by such decision, opinion or judgment.
Section S.
EFFECTWENESS.
That this Ordinance shall take effect and be in full force and effect from and after its adoption.
AND IT IS SO ORDAINED.
[signatures on following pagel
Ordinance Extending the Term of, and Approving Amendment to Project and Financing Plan for, page 5
Tax Increment Reinvestment Zone Number Eight, City of Fort Worth, 'Texas
APPROVED AS TO FORM AND LEGALITY:
Denis McElroy
Assistant City Attorney
M&C: 24-0939
ADOPTED AND EFFECTIVE: October 29 2024
ATTEST:
Jannette S. Goodall
City Secretary
Ordinance Extending the Tenn of, and Approving Amendment to Project and Financing Plan for, Page 6
Tax Increment Reinvestment .Zone Number Eight, City of Fort Worth, Texas
Exhibit A
Tax Increment Reinvestment Zone Number Eight, City of Fort Worth, Texas
(Lancaster TIF)
Amended Project and Financing Plan
Ordinance Extending the Term of, and Approving Amendment to Project and Financing Plan for, Page 7
Tax Increment Reinvestment Zone Number Eight, City of Fort Worth, Texas
Tax Increment Reinvestment Zone Number Eight,
City of Fort Worth, Texas
(Lancaster TIF)
Project Plan and Financing Plan
Prepared for
The City of Fort Worth
October 15, 2024
Tax Increment Reinvestment Zone Number Eight,
City of Fort Worth, Texas
(Lancaster TIF)
Project Plan and Financing Plan
Table of Contents
I. Tax Increment Financing Overview.......................................................................................3
II. Amended Project and Financing Plan.....................................................................................4
III. The Project Plan......................................................................................................................4
A. Description of the Zone..............................................................................................4
B. Proposed Changes to Current Ordinances and Codes ................7
C. Estimated Private Investment (Non -Project Costs)...................................................7
D. Method of Relocating Displaced Persons...................................................................7
E. Relationship to Downtown TIF..................................................................................7
IV. The Financing Plan.................................................................................................................9
A. Proposed Projects and Improvements.........................................................................9
B. Revenue Projections.................................................................................................11
V. Summary of Project Costs and Financing............................................................................13
VI. Tables........................................................................................................... ......................14
VII. Exhibits.................................................................................................................................15
A. Map of Boundary.....................................................................................................15
B. Legal Description.....................................................................................................16
C. Map of Potentially Underutilized Properties in Downtown.....................................17
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I. TAX INCREMENT FINANCING OVERVIEW
Tax increment financing ("TIF") is a tool Texas local governments use to finance public
improvements within a defined area. These improvements are intended to promote
development or redevelopment in the defined area and surrounding areas. The statute
governing tax increment financing is codified in Chapter 311 of the Texas Tax Code (the "Tax
Code"). Chapter 311 is often referred to as the Tax Increment Financing Act and it allows
municipalities to create "reinvestment zones" within which various public improvements can
be undertaken.
A municipality makes an area eligible for tax increment financing by designating a
reinvestment zone. Essentially, for the City to initiate the designation of an area as a
reinvestment zone, the area must 1) substantially arrest or impair the sound growth of the
municipality creating the zone, retard the provision of housing accommodations, or constitute
an economic or social liability and be a menace to the public health, safety, morals, or welfare
in its present condition; or 2) be predominately open and, because of obsolete platting,
deterioration of structure or site improvements, or other factors, substantially impair or arrest
the sound growth of the municipality; or 3) be in a federally assisted new community located
in the municipality or adjacent to such property.
At the time an area is designated a reinvestment zone for tax increment financing, the existing
total taxable value of real property in the zone is identified and designated as the "base value."
All taxing units that levy taxes in the zone during the life of the TIF will continue to receive
the tax revenues derived from the "base value."
As new development is added to the tax rolls within the TIF area, total assessed valuations
rise. This rise in new value is measured annually and is called the "captured appraised value".
The taxes that are collected by the participating taxing jurisdictions on the incremental increase
between the original "base value" and the current year's "captured appraised value" is the "tax
increment". Each taxing unit choosing to participate in the TIF will agree to deposit a portion
or all of the taxes generated from the "tax increment" into a TIF fund administered by a TIF
Board that is appointed by the local taxing units.
The TIF Board uses the tax increment to make public improvements in the area to attract
private development that would not otherwise occur or that may not occur until a much Iater
date. Additionally, the TIF Board may enter into development agreements to participate in
new development or redevelopment or to facilitate the financing of eligible public
improvements that support the objectives of the TIF District as described within the Project
Plan and Financing Plan (the "Plan") as adopted by the TIF Board and participating local
taxing units.
The TIF District ends on the earlier of 1) the termination date contained in the ordinance
establishing the zone or 2) the date on which all project cost have been paid in full. Any
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2024 Amended Project and Financing Plan Page 3 of 17
revenues remaining in the TIF fund after the dissolution of the TIF are returned pro rata to
each participating taxing unit.
II. AMENDED PROJECT AND FINANCING PLAN
This amended Proj ect and Financing Plan for the City of Fort Worth Tax Increment
Reinvestment Zone Number Eight ("Lancaster TIF") replaces the previous Plan for the
Lancaster TIF as adopted in 2015 (the "2015 Plan"). Except as otherwise prescribed, allowed
for, or prohibited by state law, the powers and restrictions of the Lancaster TIF will be as
provided for in this Plan.
The adoption of this Plan is done in recognition of the continued set of conditions that apply
to Downtown Fort Worth which require or might otherwise benefit from the form of support
contemplated by Chapter 311 of the Tax Code and that may be further improved by the
continued existence and resources of the Lancaster TIF. Moreover, the adoption of this Plan
and the amendment or replacement of associated agreements, ordinances, etc. is done in
response to new elements, considerations, and opportunities not originally anticipated in 20I5
Plan that may require additional support for a term extending beyond that presented in the
2015 Plan.
III. THE PROJECT PLAN
A. DESCRIPTION OF THE ZONE
Anchored by several historic and monumental buildings marking the southern edge of
downtown Fort Worth and prompted by the relocation and removal of the I-30 overpass, Tax
Increment Reinvestment Zone Number Eight ("Lancaster TIF") has played a pivotal role in
the transformation of Lancaster Avenue. Since its creation in 2003, the taxable value of
property in the Lancaster Corridor TIF has increased to nearly four times its base year value,
adding over $700 million in new taxable value to the district. In addition to the numerous
improvements made to Lancaster Avenue itself, including improvements to utilities,
sidewalks, and medians and the installation of public art, the Lancaster Corridor TIF has
supported development projects on the blocks surrounding and extending north from Lancaster
Avenue. With the support of the TIF, the T&P Terminal building is now a restored residential
tower, the Omni Fort Worth Convention Hotel now stands where surface parking once stood,
the Oncor Building now features upgraded utilities and better engages pedestrians along
Houston Street and Main Street, Pinnacle Bank Place has added a new mixed -use anchor to
the northern edge of Lancaster Avenue, and Fort Worth's first high-rise residential tower in
approximately thirty years, Deco 959, now stands in the Lancaster TIF, reshaping the Fort
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Worth skyline. Many of these projects were facilitated through an amended Project and
Financing Plan for the Lancaster TIF that was adopted in 2015 (the "2015 Plan"). The 2015
Plan responded to changing conditions along the Lancaster Avenue corridor and elsewhere
within the southern portion of Downtown Fort Worth. Although several of the goals,
objectives, and projects identified in the 2015 Plan have been advanced by the Lancaster TIF,
much remains to be accomplished the fully realize the vision for the area that was first
described upon the formation of the TIF district.
More recently and following the difficult conditions affecting the Downtown area, real estate
markets, and general economy as a result of the COVID-19 pandemic and responding, more
simply, to the ongoing growth and evolving characteristics of Downtown, a new Downtown
Strategic Action PIan, Plan 2033, was prepared by Downtown Fort Worth, Inc. ("DFWI") and
adopted by the City Council. Plan 2033 incorporated community input from a year -long
stakeholder engagement effort and that identifies various new and ongoing issues that are a
focus for the Downtown area in the decade ahead — a period that reaches beyond the term of
the Lancaster TIF as reflected in the 2015 Plan. Priorities that include more housing and small
businesses, better public spaces and improved public transportation were highlighted in Plan
2033 and serve as important guideposts for advancing public and private investment in the
area. Plan 2033 also recognizes the continued need and opportunity for development within
the Downtown Area, given the large number of underdeveloped properties that continue to
hinder the district. A map of properties that are potentially underdeveloped is included in
Exhibit C.
In addition to the goals, findings, and objectives of the Downtown Strategic Action Plan,
several recent major projects located within or adjacent to the Lancaster TIF form a new set
of needs, challenges, and opportunities that require both an extension of the term of the
Lancaster TIF and a revised set of TIF projects to meet them. In particular, plans for the
redevelopment of the Texas A&M University Law School and the creation of a multi -block
campus and innovation hub surrounding it (the "Texas A&M Campus") hold the potential to
significantly reshape the southern portion of Downtown and to support activity that could have
tremendous implications for the local and regional economy. Plans for the Texas A&M
Campus rely on investment, infrastructure, programming, and mutual support from the
university system and the public and private sectors through a university -public -private
partnership. The Lancaster TIF is an ideal tool for addressing some of the many requirements,
both near- and long-term, for the Texas A&M Campus and properties that surround it.
Additionally, the City of Fort Worth has committed to a multi -phase redevelopment of the
Fort Worth Convention Center which lies adjacent to the Lancaster TIF near the Texas A&M
Campus. Improvements to and a broadened capacity for the Fort Worth Convention Center to
support larger meetings and conventions supports the related aim of the City to facilitate the
development of a new convention hotel on property located within or near to the Lancaster
TIF. These and other important projects not only serve as catalysts for future improvements to
the Lancaster TIF, but add to the requirements of support from it.
The Project Plan of the Lancaster TIF is intended to address those challenges that are common
to the area encompassed by the TIF boundaries through public improvements that may include,
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2024 Amended Project and Financing Plan Page 5 of17
in general, road improvements, public water and sewer line improvements, demolition and
environmental remediation, streetscaping and pedestrian improvements, public parking
infrastructure, certain public amenities, and inter -district connectivity, and public -private
partnership for the development of the district and its economy.
In general, the TIF Plan contemplates that local governmental entities, prospective developers
or business tenants of properties located within the TIF, or certain quasi -governmental or non-
profit entities may fund portions of public infrastructure or other public improvements
utilizing financial support from the TIF Board through development agreements that provide
for conditional funding or for the reimbursement of eligible expenses for these projects. It is
also anticipated that the TIF Board may undertake certain public improvement projects
dependent upon sufficient funding availability from tax increment in an effort to further
enhance the area, thereby making it more attractive to new development and redevelopment,
and, more generally, supporting a fuller realization of the goals, objectives, and vision
established for the Lancaster TIF district upon its initial establishment and as more recently
articulated in Plan 2033.
Projects will qualify for assistance by the use of TIF funds if those projects meet at least one
of the criteria outlined below. Qualifying for assistance does not mean that the project will
automatically receive TIF assistance. Only projects in which the TIF Board has approved
participation by the use of TIF funds through a development agreement will receive assistance.
Although more specifically prioritized projects are individually identified in the Financing
Plan, projects will, in a more general sense, be eligible for consideration for support by the by
the Lancaster TIF upon and subject of conditions approved by the TIF Board, including:
• Higher -education and research facilities
• Public parking facilities, easements, or lease instruments
• Mixed -use and high-rise development
• Adaptive reuse of an existing building
• Transit -oriented development
• Projects that lead to substantial direct job creation, corporate relocation, or otherwise
contribute significantly to the strengthening of a target industry as identified in the City
of Fort Worth Economic Development Strategic Plan then in effect
• Historic preservation or restoration
• Board -approved streetscape improvements
• Transportation improvements that substantially enhance accessibility and mobility
within the area
• Mixed -income and affordable housing
• Board -approved public amenities and parks improvements
• Infrastructure improvements that create or improve pedestrian and vehicular linkages
to nearby districts.
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2024Amended Project and Financing Plan Page 6 of 17
B. PROPOSED CHANGES TO CURRENT ORDINANCES AND CODES
No changes are anticipated to current zoning and design districts applicable to the Lancaster
TIF.
C. ESTIMATED PRIVATE INVESTMENT (NON -PROJECT COSTS)
Although private investment relating to specific near -term projects has not been separately
evaluated, the estimated incremental value of property more generally (inclusive of the value
of future new investment) has been incorporated into the financial projections presented in the
Financing Plan. It is nevertheless anticipated that with the successful delivery of the Texas
A&M campus and its associated innovation hub as well as other planned improvements to the
Fort Worth Convention Center and currently planned or in -progress private development
located in downtown that highly significant and valuable private investment will occur within
and by the continued existence and operation of the Lancaster TIF.
D. METHOD OF RELOCATING DISPLACED PERSONS
No person shall be displaced as a result of implementing the Plan.
E. RELATIONSHIP TO DOWNTOWN TIF
Located adjacent to the Lancaster TIF and containing much of the southern half the
Downtown area of Fort Worth is Tax Increment Reinvestment Zone Number Three (the
"Downtown TIF"). The specific location of the Downtown TIF and the boundaries shared
with the Lancaster TIF can be seen in Exhibit A.
Together, these two TIF districts play an immense role in supporting the growth and
redevelopment of Downtown more generally and, more particularly, for projects that are
located in close proximity to the boundary that separates them, each gain in the benefits and
activities of the other. As much of the recent activity in both TIF districts has been located in
the southern portion of Downtown and more specifically in an area that is located with both
districts' boundaries, there is a need for close coordination between the two districts.
In an effort to further the goals and objectives that are shared between the Lancaster TIF and
the Downtown TIF and to jointly finance projects that are Iocated along or near to their
common boundaries, both TIF districts will be coordinated jointly with regard to strategy,
policy, and administration. Likewise, it is anticipated that both TIF districts will share a
common Board structure and Board representation so as to ensure efficiencies and
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2024Amended Project and Financing Plan Page 7 of 17
uniformity of action, especially as relates to those primary projects that are described in this
Plan.
Financially, while TIF Boards are authorized under Ch. 311 of the Tax Code to use funds in
support of certain projects that are located outside of the boundaries of the TIF district
(provided that a material benefit to the TIF district can be demonstrated by doing so), it
should be recognized that there are limitations in the use of Lancaster TIF funds in support
of projects located in the Downtown TIF and vice versa. Therefore, the TIF Board and the
administrator will need to effectively manage, communicate, and financially account for any
such situations. Nevertheless, the magnitude of several projects located along a shared
boundary between the two districts makes it likely that joint participation in individual
projects will be necessary.
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2024 Amended Project and Financing Plan Page 8 of17
IV. THE FINANCING PLAN
A. PROPOSED PROJECTS AND IMPROVEMENTS
The continued support and development of the Lancaster TIF will consist of a combination of
public improvements and private investment projects. Given the broad -based opportunities
and potential project needs found throughout the southern Downtown area, both now and
anticipated for the coming twenty-year period, the Financing Plan is organized in such a
manner as to recognize and prioritize those improvements in the district that of highest near -
term importance and which played a central role in decisions to extend the term of the
Lancaster TIF.
i. Primary Improvements
The Lancaster TIF will, by its administration and by the long-term strategic, financing, and
budgetary decisions of the TIF Board, prioritize the following projects and their associated
improvements (the "Primary Projects") as listed below:
• TAMU Innovation Campus Infrastructure and Bond Debt Service;
• TAMU/Convention Center/Hotel Parking Infrastructure and Land Acquisition;
• Enhanced Pedestrian Safety, Accessibility, Connectivity, Pedestrian Plaza;
• Transportation Improvements (Intersections, Freight/Loading Access, Traffic);
• Streetscape (Calhoun, Commerce, Jones, Lancaster, 12th, 13th, 15th, others);
• Utility Relocations, Public Information, Technology/Innovation Applications;
• Public Safety Improvements (Pedestrian Lighting, Cameras, Signage, other); and
ii. Other / General Improvements
In addition, but of secondary priority, to those improvements described above for Primary
Projects, other eligible improvements relating to Board -approved projects listed in the Project
Plan will include the types of improvements described below:
Road and Access Improvements - Street, traffic, utility, drainage and other public
infrastructure projects within the TIF boundaries, including projects that improve
access to and from the TIF area, such as rail crossings or rail overpasses.
Public Infrastructure Improvements - Public water and sewer line improvements,
electric utility improvements, demolition and environmental remediation projects
within TIF boundaries.
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2024Amended Project and Financing Plan Page 9 of 17
• Streetscaping and Pedestrian Improvements — Landscaping and sidewalk
improvements, installation of pedestrian lighting, benches and wayfinding signage as
well as other improvements within the public right-of-way that enhance the pedestrian
experience.
• Public Parking Infrastructure (structured) — Construction of new parking facilities or
improvements to existing parking facilities that dedicate spaces for use by the general
public either through fee -simple conveyance to a public entity participating in the TIF,
through the conveyance of a parking easement, or by a lease instrument.
• Civic Space and Public Amenities — Improvements to parks, public plazas or similar
public improvements that support development and redevelopment within TIF
boundaries
• Demolition and Environmental Remediation — Demolition of existing structures or
improvements at, above or below grade in association with Board -approved projects as
listed in the Project Plan and site improvements that address existing conditions that
pose concerns to the environment or public health.
• Historic Facade Preservation and Restoration — Improvements to the exterior fagade of
buildings that are designated (i) Historic Significant Endangered ("HSE") or (ii) as
Historic and Cultural Landmark ("HC") by the City or, as a condition precedent to
receipt of funding, will be designated as such upon completion of the designation
process.
Administrative Expenses — Up to four percent (4%) of annual revenues collected by the
Lancaster TIF may be used for eligible administrative expenses as permitted by Chapter
311 of the Tax Code, provided that the total annual amount of projected administrative
expenses for the TIF be presented to the TIF Board as part of an annual budget of
overall annual TIF revenues, expenditures, and fund balance.
iii. Economic Development Program Grants (Chapter 380 Agreements)
As may be necessary or convenient to the support of eligible projects described in the
Plan, the TIF Board is authorized to enter into economic development program
agreements providing for the conditional grant of TIF funds pursuant to Chapter 3 80 of
the Texas Local Government Code ("Chapter 380 Agreements") as authorized by and
in accordance with Section 9 of the City of Fort Worth Policy, Guidelines and
Procedures for Tax Increment Reinvestment Zones as adopted in March 2023 and
Section 311.010(h) of the Texas Tax Code.
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B. TAX INCREMENT REVENUE PROJECTIONS
i. Economic Feasibility
City staff has determined that the Project and Financing Plan is economically feasible
per the tax increment financing projections included in Table "l". It is anticipated the
City of Fort Worth, Tarrant County, Tarrant County College District, and the Tarrant
Regional Water District will continue to participate in the TIT district in order to have
TIF funds available for TIF Project funding. These financial projections also show
the TIF Project Costs may be supported over the course of the term by the total
increment generated exceeds the total TLF Project Costs.
ii. Bonded Indebtedness
The potential direct or indirect bonded indebtedness of the Lancaster TIF may be necessary
in relation to eligible projects. In particular, it is anticipated that several Primary Projects
may require bond financing with full or partial participation by the Lancaster TIF. Any such
indebtedness will require specific TIF Board approval and should reflect best practices
concern public bond finance review and underwriting.
iii. Projection of Revenues
This section outlines the estimated zone tax increment. The zone tax increment will depend
on many factors, including (a) the base value of real property in the zone subject to property
tax; (b) captured appraised value; (c) annual growth of the zone's taxable real property (which
largely depends on private growth within the zone); (d) participation by tax units; (e) tax rates;
(f) collection rates; and (g) the term of the zone. Each of these factors is discussed in turn.
(a) Taxable Appraised Value for 2004 (the Base Value). The base value of the
Lancaster TIF will continue to be that which was established upon its initial formation and as
had, more recently, been reflected in the 2015 PIan, that value being $178,938,722.
(b) Captured Appraised Value. Table 1 sets forth the estimated total appraised value
of property in the zone over the life of the TIF (estimated to be approximately $2,813,694,076
in fiscal year 2045).
(c) Expected Annual_ Growth of the Zone's Taxable Real Property. The estimated
captured appraised value (thus reflecting estimated growth of real property taxable values) of
the zone for each year of its existence and the estimated tax increment to be generated annually
in total and from each taxing entity is outlined in Table 1.
(d) Participation by Tax Units. Although each taxing entity has not agreed to a
specific level of participation, the financial projections set forth in the Plan anticipates that the
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2024 Amended Project and Financing Plan Page 11 of 17
City of Fort Worth, Tarrant County, Tarrant County College, and Tarrant Regional Water
District will participate in the zone, by contributing a percentage of each entity's tax increment
with respect to the zone as indicated below:
Lancaster TIF Participation Rates
Participating Enti
City of Fort Worth
Tarrant County
Tarrant County College District
Tarrant Regional Water District
Participation Rate
50%
35%
35%
35%
No cap shall apply to the collective revenues or expenses of the Lancaster TIF (including
annually in any remaining years of the term or over the full lifetime of the term) except as may
be applicable to the contributions of individual entities participating in the Lancaster TIF per
the terms of their participation agreement.
(e) Projected Tax Rates. Property tax rates are assumed to remain constant.
(f) Projected Collection Rates. The Plan assumes a one hundred percent (100%)
collection rate.
(g) Term of the Zone. The term of the zone will be 41 years, expiring on December
31, 2045, beginning with that zone tax increment generated by the 2004 tax appraisal and
ending with that zone tax increment generated by the 2045 tax appraisal.
iv. Estimated Payment of Project Costs
Based on the assumptions and estimates set forth in the information above, it is expected that
the zone tax increment will be sufficient to pay in full all project costs (including interest).
V. Tax Exemptions Issued by Participating Taxing Entities
All taxing entities that participate in the zone shall retain the right to grant tax exemptions as
permitted by applicable law to properties located in the zone for purposes including but not
limited to 1) historic preservation and restoration, 2) homestead exemptions, and other limited
or non -material deductions that might amount to a withholding of otherwise agreed upon
contributions to the TIF Fund. This shall not include any form of tax abatement or grant of tax
funds collected by either of the participating taxing entities without prior approval by the TIF
Board pursuant to Section 311.013(f) of the Texas Tax Code.
vi. Administration
The Lancaster TIF will continue to be administered by the City of Fort Worth Economic
Development Department.
LancasterTlF
2024 Amended Project and Financing Plan Page 12 of 17
IV. SUMMARY OF PROJECT COSTS AND FINANCING
A. Anticipated TIF Projects*
Estimated Costs
Texas A&M Campus and Innovation Hub (and Bond Debt Service)
$32,000,000
Texas A&M Campus / Convention Center / Hotel Parking Infrastructure
$45,000,000
Enhanced Pedestrian Safety, Accessibility, Connectivity, Pedestrian Plaza
$10,000,000
Transportation Improvements (Intersections, Freight/Loading Access, etc.)
$19,500,000
Streetscape (Calhoun, Commerce, Jones, Lancaster, 12th, 13th, 15th, others)
$17,000,000
Utility Relocations, Public Information, Technology/Innovation Applications
$9,500,000
Public Safety Improvements (Pedestrian Lighting, Cameras, Signage, other)
$ 8,500,000
TOTAL ESTIMATED PROJECT COSTS
$141,500,000
* Project costs assume interest associated with reimbursement for public improvements.
Note; The amounts outlined above are strictly estimates and do not serve as caps on any specific item. Eligible
project costs not outlined above may be funded on a specific project as approved by the TT Board.
B. Anticipated TIF Revenues
• City of Fort Worth $ 105,030,661
• Tarrant County $ 21,424,656
• Tarrant County College District $ 12,459,248
• Tarrant Regional Water District $ 2,970,074
TOTAL REVENUE S 141,884,639
LancasterTIF=
2024 Amended Project and Financing Plan Page 13 of 17
V.
Table l: TIF Revenue Projections
TABLES
TIF 8 (Lancaster) Projections FY2024 FY2025 FY2026 FY2027 FY2028 FY2029
TAXABLE VALUE r r
YOY&Growth 14.1% 6.0% 6.0% 6.0% 6.0% 6.0%
TAX INCREMENT (CFWJ $646,537,071 $696,060,319 $748,560,261 $804,2I0,200 $863,199,135 $925,727,407
Ctty of fort Worth: 50%
2,173,964
2,340,503
2,517,034
2,704,157
2,902,507
3,112,759
Tarrant County Hospital District: 0%
-
-
-
Tarrant County College Dlnrietr 35%
294,206
277,213
298,182
320,410
343,971
368,946
Tarrant Regional Water District: 35%
70,148
66,095
71,093
76,391
82,005
97,959
Tarrant County: 35%
505,308
476,193
512,284
550,541
591,093
634,078
School District: 0%
TOTAL REVENUES
$3,043,G27
s r,$4,203,742
-
TIF $ (LanCaStEr) Projections FY2030 FY2031 FY2032 FY2033 FY2034 FY2035
YOY & Growth 6.0% 6.0% 6.0% 6.0% 6.0% &0%
TAX INCREMENT (CFW) $992,007,374 $1,062,264,140 $1,136,736,312 $1,215,676,814 $1,299,353,746 $1,388,051,294
City of Fort Worth: 50%
3,335,625
3,571,863
3,822,276
4,087,713
4,369,077
4,667,322
Tarrant County Hospital District: 0%
-
-
Tarrant County College District: 35%
395,420
423,481
453,227
484,757
518,179
553,607
Tarrant Regional Water District: 35%
94,269
10Q957
109,047
115,562
123,528
131,972
Tarrant County: 35%
679,643
721,941
779,137
833,405
890,929
95I,904
School Dlstrlct:0%
0 :1
TIF 8 (Lancaster) Projections FY2036 FY2037 FY2038 FY2039 FY2040 FY2041
TAXABLE VALUE rr• .r669M2_ 1,8663 10. 181 SI.978,788,792 $�A9619861170$2,222,805,287
YOY& Growth 6.0% 6-0% 6.0% 6.0% 6-0% 60%
TAX INCREMENT (CFWJ $1,482,070,695 $S,SeI,731,260 $1,687,371,459 $1,799,350,070 $I,918,047,398 $2,043,866,565
REVENUE
City of Fort Worth: 50%
4,983,463
5,318,573
5,673,787
6,050,315
6449434
6,872,501
Tarrant County Hospital District: 0%
Tarrant County CoPe a District: 35%
591,160
630,966
673,161
717,887
765,297
815,551
Tarrant Regional Water District: 35%
140,923
150,410
160,467
171,127
182,427
I94,405
Tarrant County: 35%
1,016,598
1 085,050
1,151,672
1,234 652
1,316,251
1,402,746
School District: 0%
TOTAL
TIF 8 (Lancaster) Projections FY2042 FYZ043 rY2044 FY2045
TAXABLE VALUE r• $2,497,544AZO s
.461
YoY&Growth 6.0% 6.0% 6,0% 6.0%
TAX INCREMW JaWJ $2,177,234,882 $2,31e,605,298 $2,468,457,940 $2,627,301,739
REVENUE
City of Fort Worth: 50%
7,320,952
7,796,310
8,300,190
8,334,302
Tarrant County Hospital District: 0%
-
Tarrant County College District: 35%
868,921
925,287
'385,141
1,049 586
Tarrant Region l Water District 35%
207,102
220,560
234,826
249,948
Tarrant County: 35%
1,494,430
1,591,616
1,694,632
1,993,830
School District, 0%
TOTAL REVENUES
$9,891,305
$10,s33.113
Lancaster TIF
2024 Amended Project and Financing Plan Page 14 of 17
VI. EXHIBITS
EXHIBIT A
MAP OF THE BOUNDARY
LancasterTIF
2024 Amended Project and Financing Plan Page 15 of 17
EXHIBIT B
LEGAL DESCRIPTION OF THE TIF
Beginning at a point of the intersection of a projection of the west ROW line of Henderson
St and the south ROW line of 3rd St., thence
Northeasterly along the south ROW line of 3rd St. to a point where said line intersects with
the west ROW line of Burnett St., thence
Southeasterly along the west ROW of Burnett St. to a point where said line intersects the
north ROW Iine of 7th St., thence
Easterly along the north ROW line of 7th St. to a point where said line intersects the north
ROW line of 7th St., thence
Northeasterly along the north ROW line of 7th St. to a point where said line intersects the
east ROW line of Calhoun St., thence
Southeasterly along the cast ROW line of Calhoun St. to a point where said line intersects
the north ROW line of Interstate 30, thence
Westerly along the north ROW line to a point where said line intersects the north ROW line
of the Interstate 30 exit at Henderson St., thence
Westerly along the north ROW line of the Interstate 30 exit at Henderson St. to a point
where said line intersects the west ROW line of Henderson, thence
Northward along the west ROW line of Henderson St. to a point where said line intersects
with the south ROW line of 3rd St., which is the point of beginning.
LancasterTIF
2024Amended Project and Financing Plan Page 16 of 17
EXHIBIT C
MAP OF POTENTIALLY UNDERDEVELOPED PROPERTIES
LancasterTIF
2024 Amended Project and Financing Plan Page 17 of 17
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/29/24 M&C FILE NUMBER: M&C 24-0939
LOG NAME: 17TIF8AMENDPLAN2024
SUBJECT
(CD 9) Conduct a Public Hearing and Adopt an Ordinance Extending the Term of, and Approving Amended Project and Financing Plans for, Tax
Increment Reinvestment Zone No. Eight, Also Known as LancasterTIF, City of Fort Worth, Texas
(PUBLIC HEARING - a. Report of City Staff: Michael Hennig; b. Public Comment; 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 extension of the term of Tax Increment Reinvestment Zone No. Eight, also known as Lancaster TIF,
City of Fort Worth, Texas and the approval of updated and amended Project and Financing Plans for the Lancaster TIF as set forth in Exhibit
B of the attached Ordinance, to afford an opportunity for interested persons to speak for or against the proposed amendment, the
boundaries of the Tax Increment Reinvestment Zone No. Eight, and the concept of tax increment financing; and
2. Adopt the attached Ordinance (i) extending the term of the Lancaster TIF to the earlier of December 31, 2044, or the date on which all project
costs, tax increment bonds and interest on those bonds (if applicable), and other obligations have been paid in full; (ii) approving updated
and amended Project and Financing Plans, as previously approved by the Board of the Lancaster TIF; and (iii) containing specific findings of
fact in support of the foregoing.
DISCUSSION:
On December 9, 2003, the City Council adopted Ordinance No. 15775 designating Tax Increment Reinvestment Zone Number Eight (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
(Plans) for the Lancaster TIF, which were approved by the City Council pursuant to Ordinance No. 15844 on January 27, 2004. The Plans were
subsequently amended on six occasions as more specifically detailed in the attached ordinance. The term of the Lancaster TIF is set to expire on
December 31, 2024.
On October 2, 2024, the Board adopted a resolution approving updates and amendments to the Plans based on a desire to extend the term of the
Lancaster TIF to support additional projects that are necessary to the continued success of the district. In order for these projects to be
implemented, the Board recommended that the term of the Lancaster TIF be extended for an additional twenty years. Additionally, as part of the
amended Plans and as more specifically detailed in the attached ordinance, certain changes are recommended to the structure and composition
of the Board of the Lancaster TIF to account for vacancies that may be created by changes in participation among other local taxing entities and to
support other priorities outlined in the Plans.
Accordingly, pursuant to authority granted by Section 311.017(a)(1) of the Texas Tax Code, it is recommended that the term of the Lancaster TIF be
extended to expire on the earlier of December 31, 2044, or the date on which all project costs, tax increment bonds and interest on those bonds,
and other obligations have been paid in full.
The amended Project and Financing Plans for the Lancaster TIF are attached as Exhibit "A" to the proposed Ordinance. After conducting the
public hearing regarding the proposed extension of the term of the Lancaster TIF, the amended Project and Financing Plans, and the concept of
tax increment financing in general and after affording a reasonable opportunity for all interested persons to speak for or against the same, it is
recommended that the City Council adopt the attached Ordinance extending the term of the Lancaster TIF and approving the amended Project and
Financing Plans.
Notice of this hearing was published in the Fort Worth Star -Telegram at least seven days prior to this public hearing.
The Lancaster TIF is located in COUNCIL DISTRICT 9.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION 1 CERTIFICATION:
The Director of Finance certifies that approval of this agreement will have no material effect on the Fiscal Year 2025 Budget. While no current year
impact is anticipated from this action, any effect on expenditures and revenues will be budgeted in future Fiscal Years and will be included in the
long-term financial forecast.
Submitted for City Mangaer's Office byC William Johnson 5806
Originating Business Unit Head: Robert Stums 2663
Additional Information Contact: Michael Hennig 6024