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HomeMy WebLinkAboutOrdinance 15436ORDINANCE NO. I ~ ~ 3 AN ORDINANCE DESIGNATING A CERTAIN AREA IN THE CITY OF FORT WORTH AS "TAX ABATEMENT REINVESTMENT ZONE Tf[JMBER FORTY-TWO, CITY OF FORT WORTH, TEXAS"; PROVIDING THE EFFECTIVE ANI) 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 Council's adoption on February 26, 2002 of Resolution No. 2811 (M&C G-13540), the City of Fort Worth, Texas (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 at Chapter 312 of the Texas Tax Code (the "Code"); and WHEREAS, the City Council desires to promote the development of the area in the City more specifically described in Exhibit "A" of this Ordinance (the "Zone") through the creation of a reinvestment zone for purposes of granting tax abatement on residential development in the Zone, as authorized by and in accordance with Chapter 312 of the Code; and WHEREAS, Tony Landrum Company, Inc. d/b/a TLC Realty Advisors ("Company"), owns property or is under contract to purchase real property in the Zone and has applied for tax abatement from the City in return for the reconstruction of certain improvements on that property, including, but not limited to, the renovation and restoration of an empty, damaged 35-story high-rise office building into residential Page 1 Ordinance Designating Tax Abatement Reinvestment Zone Number Foriy-Two, City of Fort Worth, Texas apartments and condominiums ("Improvements") and certain other commitments that will foster economic development in the Zone and the City in general; and WHEREAS, on February 11, 2003 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; and WHEREAS, notice of the Public Hearing was published in a newspaper of general circulation in the City on February 4, 2003, which satisfies the requirement of Section 312.201(d)(1) of the Code that publication of the notice occur not later than the seventh day before the date of the public hearing; and WHEREAS, in accordance with Sections 312.201(d)(2) and (e) of the Code, notice of the Public Hearing was delivered in writing not later than the seventh day before the date of the public hearing 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; 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 Page 2 Ordinance Designating Tax Abatement Reinvestment Zone Number Forty-Two, City of Fort Worth, Texas all 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 a reinvestment zone under Chapter 312 of the Code. 1.2. As a result of designation as a reinvestment zone pursuant to Chapter 312 of the Code, 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. 1.3. The Improvements proposed for the Zone, as outlined in the Public Hearing and which will be made pursuant to a tax abatement agreement with Company that must subsequently be approved by the City Council, are feasible and practical and, once completed, will benefit the land included in the Zone as well as the City for a period in excess of ten (10) years, which is the statutory maximum term of any tax abatement agreement entered into under the Chapter 312 of the Code. 1.4. The Zone is an overlay within Tax Increment Reinvestment Zone Number Three, City of Fort Worth, Texas (the "Downtown 'I'IF") and, accordingly, that the Downtown TIF's board of directors and the governing bodies of all taxing units contributing tax increment to the Downtown T1F must approve any tax abatement agreement between the City and Company in order for such tax abatement agreement to take effect. Page 3 Qrdinance Designating Tax Abatement Reinvestment Zone Number Forty-Two, City of Fort Worth, Texas Section 2. DESIGNATION OF ZONE. That the City Council hereby 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 of granting tax abatement for residential development in the Zone, as authorized by and in accordance with Chapter 312 of the Code. This Zone shall be known as "Tax Abatement Reinvestment Zone Number Forty- two, City of Fort Worth, Texas." The area within the Zone is eligible for residential tax abatement pursuant to Resolution No. 2811. Section 3. TEI2IVI OF ZONE. That the Zone shall take effect upon the effective date of this Ordinance and expire five (5) years thereafter. The Zone may be renewed by the City Council for one or more subsequent terms of five (5) years or less. 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 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. Page 4 Ordinance Designating Tax Abatement Reinvestment Zone Number Forty-Two, City of Fort Worth, Texas Section 5. EFFECTIVENESS. That this Ordinance shall take effect upon its adoption. AND IT IS SO ORDAINED. ADOPTED AND EFFECTIVE: ~. 1 i) ~3 APPROVED AS TO FORM AND LEGALITY: By: ~ Peter Vaky Assistant City Attorney Date: 2 -/l-D3 M&c: ~ -13:~~9 Page 5 Ordinance Designating Tax Abatement Reinvestment Zone Number Forty-Two, City of Fort Worth, Texas Exhibit "A" BOUNDARx DESCRIPTION OF ZONE Beginning at a point of the intersection of the north ROW line of 5th St. and the east ROW line of Lamar St., thence Northeasterly along the north ROW line of 5th St. to a point where said line intersects with the west ROW line of Throckmorton St., thence Northwesterly along the west ROW line of Throclanorton St. to a point where said line intersects with the south ROW line of 4th St., thence Southwesterly along the south ROW line of 4th St. to a point where said line intersects with the west ROW line of Taylor St., thence Northwesterly along the west ROW line of Taylor St. to the midpoint of Block 76, Fort Worth Original Town Addition, thence Southwesterly to the midpoint of Block 76, Fort Worth Original Town Addition, to a point where said line intersects with the east ROW line of Lamar St., thence Southeasterly along the east ROW line of Lamar St. to a point where said line intersects with the north ROW line of 5th St., which is the point of beginning. tl'\: y~~CT~., F City of ~'o~°t T~o~th, ~'exas Mayor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 2/11/03 (~_~ 3879 17ZONE-42 1 of 2 SUBJECT PUBLIC HEARING AND ORDINANCE DESIGNATING TAX ABATEMENT REINVESTMENT ZONE NO. 42, CITY OF FORT WORTH, TEXAS RECOMMENDATION: It is recommended that the City Council: 1. Hald a public hearing concerning the designation of Tax Abatement Reinvestment Zone No. 42, City of Fort Worth, Texas; and 2. Adopt the attached ordinance that designates Tax Abatement Reinvestment Zone No. 42, City of Fort Worth, Texas pursuant to and in accordance with Chapter 312 of the Texas Tax,Code. DISCUSSION: The proposed Reinvestment Zone No. 42, City of Fort Worth, Texas (Zone) is located in downtown Fort Worth and comprises the. old Bank One tower and an adjacent one and one-half blocks. The exact boundaries of the property are described in Exhibit A of the attached ordinance. TLC Realty Advisors intends to redevelop the tower as a high-rise condominium and/or apartment building. A tax abatement application has been submitted for its proposed development. Chapter 312 of the. Texas Tax Code requires that property subject to tax abatement must be located in a reinvestment or enterprise zone. Although the proposed Zone is already located within the Downtown TIF (tax increment financing district), which is a reinvestment zone that was .designated for tax increment financing purposes pursuant to Chapter 311 of the Texas Tax Code, City staff recommends designation of this Zone as a tax abatement reinvestment zone. overlay within .the Downtown TIF. In order to designate the property as a tax abatement reinvestment zone, the City Council must first conduct a public hearing. Notice of this hearing was (1) delivered to the governing .body of each affected taxing unit and (2) published iri the City's official newspaper not later than the seventh day before the date of this hearing. The area encompassing the proposed Zone meets the statutory criteria for designation as a tax abatement reinvestment zone set forth in Chapter 312 of the Texas Tax Code in that the area is reasonably likely, as ~a result of the designation, to contribute to the retention or expansion of primary employment or to attract major investment in the Zone that would be a benefit to the property and that would contribute to the economic development of the City. Further, the improvements sought in the Zone are feasible, practical and would be a benefit to the land to be included in the Zone and to the City after any tax abatement agreements which may be entered into have expired. The term of the proposed Zone will be five (5) years from the date of adoption of the attached ordinance and may be renewed for periods not to exceed five (5) years each. City of Fort Woa~th, ~'exas Mayor and Council Communication DATE 2/11/03 REFERENCE NUMBER G-13879 LOG NAME 17ZONE-42 PAGE 2 of 2 SUBJECT PUBLIC HEARING AND ORDINANCE DESIGNATING TAX ABATEMENT REINVESTMENT ZONE N0.42, CITY OF FORT WORTH, TEXAS FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action does not require the expenditure of City funds. RR:k Submitted for City Manager's FUND ACCOUNT .CENTER AMOUNT CITY SECRETARY Office by: (to) Reid Rector 6140 Originating Department Head: Tom Higgins 6192 (from) APPROVED 2/11/03 ORD. #15436 Additional Information Contact: Peter Vaky 7601 Ardina Washington 8003