HomeMy WebLinkAboutOrdinance 27224-10-2024ORDINANCE NO.27224-10-2024
AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE
CITY OF FORT WORTH AS "TAX ABATEMENT
REINVESTMENT ZONE NUMBER ONE HUNDRED AND
ELEVEN, CITY OF FORT WORTH, TEXAS"; PROVIDING THE
EFFECTIVE AND EXPIRATION DATES FOR THE ZONE AND A
MECHANISM FOR RENEWAL OF THE ZONE; AND
CONTAINING OTHER MATTERS RELATED TO THE ZONE.
WHEREAS, pursuant to the City of Fort Worth's ("City") Tax Abatement Policy,
which was adopted by the City Council to be effective on February 28, 2023 by way of
Resolution No. 5709-02-2023 ("Tax Abatement Policy"), the City has elected to be
eligible to participate in tax abatement and has established guidelines and criteria
governing tax abatement agreements entered into between the City and various third
parties, as authorized by and in accordance with the Property Redevelopment and Tax
Abatement Act, codified in Chapter 312 of the Texas Tax Code ("Code");
WHEREAS, the City Council desires to promote the development of the area in
the City more specifically described in Exhibit "A" of this Ordinance ("Zone") through
the creation of a reinvestment zone for the purpose of supporting new business investment
or expansion, as authorized by and in accordance with Chapter 312 of the Code;
WHEREAS, Embraer Aircraft Maintenance Services, LLC, or an Affiliate,
("Company") wishes to expend or cause to be expended at least $42 million in real
property improvements for the development of Company's manufacturing facility to be
located in the Zone, and Company intends to install new taxable tangible business personal
property at the facility worth at least $15 million that will ultimately result in a combined
real and personal property investment of at least $57 miIlion (collectively, the
"Improvements");
WHEREAS, Company has applied for real property and business personal
property tax abatements from the City in return for the installation of the Improvements in
the Zone and compliance with certain other employment and spending requirements;
WHEREAS, to foster economic development in the Zone, and the City, in general,
it is anticipated that the City will enter a tax abatement agreement(s) for one or more
Improvements within the Zone;
WHEREAS, on October 15, 2024, the City Council held a public hearing regarding
the creation of the Zone, received information concerning the Improvements proposed for
the Zone, and afforded a reasonable opportunity for all interested persons to speak and
present evidence for, or against, the creation of the Zone ("Public Hearing"), as required
by Section 312.201(d) of the Code;
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Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Eleven,
City of Port Worth, Texas
WHEREAS, notice of the Public Hearing was published in a newspaper of general
circulation in the City at least seven (7) days prior to the Public Hearing, which satisfies
the requirement of Section 312.201(d)(1) of the Code; and
WHEREAS, in accordance with Sections 312.201(d)(2) and (e) of the Code, notice
of the Public Hearing was also delivered, in writing, to the presiding officer of the
governing body of each taxing unit that includes in its boundaries real property that is to
be included in the proposed Zone not later than the seventh day before the date of the public
hearing..
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FORT WORTH, TEXAS:
SECTION 1.
FINDINGS.
That, after reviewing all information before it regarding the establishment of the
Zone and after conducting the Public Hearing and affording a reasonable opportunity for
ail interested persons to speak and present evidence for, or against, the creation of the Zone,
the City Council hereby makes the following findings of fact:
1.1. The statements and facts set forth in the recitals of this Ordinance are true and
correct. Therefore, the City has met the notice and procedural requirements
established by the Code for creation of the Zone under Chapter 312 of the Code.
1.2. The Improvements proposed for the Zone, as more specifically outlined in the
Public Hearing, are feasible and practical and, once completed, will benefit the land
included in the Zone as well as the City for a period of more than ten (10) years,
which is the statutory maximum term of any tax abatement agreement entered into
under the Chapter 312 of the Code.
1.3. As a result of designation as a reinvestment zone, the area within the Zone is
reasonably likely to contribute to the expansion of primary employment and to
attract major investment in the Zone that will be a benefit to property in the Zone
and will contribute to the economic development of the City.
SECTION 2.
DESIGNATION OF ZONE
That the City Council designates the Zone described in the boundary description
attached hereto as Exhibit "A" and made a part of this Ordinance for all purposes as a
reinvestment zone for purposes permitting tax abatement as may be found desirable by the
City or any other eligible taxing units for purposes authorized by and in accordance with
Chapter 312 of the Code. This Zone will be known as "Tax Abatement Reinvestment
Zone Number One Hundred and Eleven, City of Fort Worth, Texas." This project is
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Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Eleven,
City of Fort Worth, Texas
eligible for commercial/industrial tax abatements per Section 4 of the Tax Abatement
Policy because it concerns a Target Industry.
SECTION 3.
TERM OF ZONE
That the Zone takes effect upon the effective date of this Ordinance and expires
five (5) years thereafter. The Zone may be renewed by the City Council for one or more
subsequent terms not to exceed five years, unless otherwise allowed by Iaw.
SECTION 4.
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 will remain in full
force and effect and shall not in any way be impaired or affected by such decision, opinion,
or judgment.
SECTION 5.
IMMEDIATE EFFECT.
That this Ordinance takes effect upon its adoption.
ADOPTED AND EFFECTIVE: October 15, 2024
APPROVED AS TO FORM
AND LEGALITY:
By.
Denis McElroy
Assistant City Attorney
M&C: 24-0881
ATTESTED BY:
(Z p + A . z3
Janette Goodall
City Secretary
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Ordinance Designating Tax Abatement Reinvestment Zone Number One Hundred and Eleven,
City of Fort Worth, Texas
EXHIBIT "A"
BOUNDARY DESCRIPTION OF ZONE
BEING a tract of land situated in the A. McDonald Survey, Abstract Number 786, Denton
County, Texas, being a portion of that tract of land described by deed to AIL Investment, L.P.;
recorded in Instrument Number 1998-117441, and being all of that tract of land described by
deed to AIL Investment, L.P., recorded in Instrument Number 1998-117438, both of said Real
Property Records, Denton County, Texas, and being more particularly described by metes and
bounds as follows:
COMMENCING at the northeast corner of said AIL Investment tract, in the south right-of-way
line of Eagle Parkway (a 120 foot right-of-way), recorded in Volume 2769, Page 580, and being
the northwest corner of that tract of land described by deed to the City of Fort Worth, recorded in
Volume 2931, Page 213, both of said Real Property Records;
THENCE S 29024'51" W, 1,181.35 feet, with the east Iine of said AIL Investment tract, and the
west line of said City of Fort Worth, to the POINT OF BEGINNING;
THENCE S 29024'51" W, 585.72 feet, with said common line, to the beginning of a curve to
the right;
THENCE with said common line and said curve to the right, an are distance of 124.49 feet,
through a central angle of 06°47'34", having a radius of 1050.00 feet, the long chord which bears
S 32048'38" W, 124.41 feet, to the south corner of said AIL Investment tract, being the southeast
corner of Lot 1, Block 1, American Airlines AFW Maintenance Base, Recorded in Cabinet H,
Page 309, said Real Property Records, and the northwest line of said City of Fort Worth;
THENCE N 60035'09" W, 862.63 feet, departing said northwest line, with the southwest line of
said AIL Investment tract, and the southeast line of said Lot 1;
I
THENCE departing the southeast line of said Lot 1, over and across said AIL Investment tract,
the following bearings and distances:
N 29024'51" E, 580.00 feet;
N 60035'09" W, 393.55 feet;
S 79034'04" W, 287.50 feet, to the west line of said AIL Investment tract, being the east
line of said Lot 1;
THENCE N 10025'56" W, 70.00 feet, with said common line;
THENCE N 79034'04" E, 406.69 feet, departing said common line;
THENCE S 60034'35" E, 1,216.89 feet, to the Point of Beginning and containing 689,816
square feet or 15.836 acres of land more or less.
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 10/15/24 M&C FILE NUMBER: M&C 24-0881
LOG NAME: 17EDTARIZ111
SUBJECT
(CD 10) Conduct Public Hearing and Adopt the Attached Ordinance Designating Tax Abatement Reinvestment Zone No. 111, City of Fart Worth,
Texas, for a 15.836 Acre Greenfield Site in Proximity to the Perot Field Fort Worth Alliance Airport to Locate a Maintenance, Repair and Overhaul
Facility for Embraer Aircraft Maintenance Services, LLC or an Affiliate
(PUBLIC HEARING - a. Report of City Staff. Cherie Gordon; b. Public Presentations; c. Council Action: Close Public Hearing and Act on M&C)
RECOMMENDATION:
It is recommended that the City Council:
1. Conduct a public hearing concerning the designation of Tax Abatement Reinvestment Zone No. 111, City of Fort Worth, Texas, for a 15.836
acre property near Perot Field Fort Worth Alliance Airport for the development of a maintenance, repair and overhaul facility for Embraer
Aircraft Maintenance Services, LLC (EmbraerAMS) or an Affiliate;
2. Find that the intended improvements, which are set forth in more detail below, are feasible and practical and would be a benefit to the land to
be included in Tax Abatement Reinvestment Zone No. f 11 and to the City after the expiration of any tax abatement agreements; and
3. Adopt the attached ordinance designating Tax Abatement Reinvestment Zone No. 111, City of Fort Worth, Texas, pursuant to and in
accordance with Chapter 312 of the Texas Tax Cade.
DISCUSSION:�
The proposed Tax Abatement Reinvestment Zone No. 111, City of Fort Worth, Texas (TARZ 110) is for a 15.836 acre property near Perot Field
Fort Worth Alliance Airport (Property). A more detailed description of the Property is included as Exhibit A to the attached Ordinance. Embraer
AMS, or an Af late, (Company) is considering leasing the Property to develop a maintenance, repair and overhaul operation facility. The proposed
project is anticipated to result in at least $57,000,000.00 in real and business personal property investment, along with the creation of at least
250 full-time jobs with a minimum salary of $67,000.00.
Designating this area as a reinvestment zone allows the City the option to enter into a tax abatement agreement with the Company to help faciliate
development within this area.
As required by Chapter 312 of the Texas Tax Code, a public hearing must be conducted regarding the creation or expansion of a Reinvestment
Zone. Notice of this hearing was delivered to the governing body of each affected taxing unit and published in a newspaper of general circulation
at least seven days prior to this hearing.
Pursuant to Chapter 312 of the Texas Tax Code, the area encompassing the proposed TARZ 111 meets the statutory criteria for designation as a
Tax Abatement Reinvestment Zone beacuse the area is likely, as a result of the designation, to contribute to the retention or expansion of primary
employment or to attract major investment in TARZ 111 that would be a benefit to the Property and that would contribute to the economic
development of the City. Further, the proposed improvements and investments are feasible and practical and would be a benefit to the land to be
included in the TARZ 111 and to the City after the expiration of any tax abatement agreement.
The term of TARZ 111 will be five years from the date of adoption of the attached Ordinance and may be renewed for periods not to exceed five
years each unless otherwise allowed by law.
The proposed zone is located in COUNCIL DISTRICT 10.
A Form 1295 is not required because: Thfs M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION ! CERTIFICATION:
The Director of Finance certifies that approval of these recommendations will have no material effect on City funds.
Submitted for City Managees Office W William Johnson 5806
Originating Business Unit Head: Robert Sturns 2663
Additional information Contact: Cherie Gordon 6053