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Home My WebLink AboutOrdinance 15470ORDINANCE NO. I ~ ~ ~ ~ AN ORDINANCE APPROVING THE PROJECT AND FINANCING PLAN FOR TAX INCREMENT REINVESTMENT ZONE NUMBER SIX, CITY OF FORT WORTH, TEXAS (]tIVERFRONT TIF); 1VIAI~IVG VARIOUS FINDINGS RELATED TO SUCH PLAN; CLARIFYING THE POWERS OF THE BOARD OF DIRECTORS OF THE ZONE; PROVIDING FOR SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on November 12, 2002 the City Council of the City of Fort Worth (the "City") designated Tax Increment Reinvestment Zone Number Six,, City of Fort Worth, Texas (Riverfront TIF) (the "Zone") pursuant to Ordinance No. 15325 and as authorized by Chapter 311 of the Texas Tax Code (the "Act"); and WIIEREAS, as authorized by Section 311.011(e) of the Act, on February 24, 2003 the board of directors of the Zone (the "Board") adopted a project and financing plan for the Zone, which is attached hereto as Exhibit "A" (the "Plan"), and recommended that the Plan be approved by the City Council; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: Section 1. FINDINGS. That the City Council hereby makes the following findings of fact: l.l. The statements and facts set forth in the recitals of this Ordinance are true and correct. Page 1 Ordinance Approving the Project and Financing Plan For Tax Increment Reinvestment Zone Number Six, City of Fort Worth, Texas 1.2. That the Plan includes all information required by Sections 311.011(b) and (c) of the Act. 1.3. That the Plan is feasible and conforms to the City's master plan. Section 2. APPROVAL OF PLAN. That based on the findings set forth in Section 1 of this Ordinance, the Plan is hereby approved. Section 3. P®WEI2S ®F B®ARD ®F DII2ECTCIRS. That the Board will have all powers granted to it under Section 311.010 of the Act and all powers granted to the City under Section 311.008 of the Act, except that the Board shall not have the power (i) of eminent domain; (ii) to issue bonds or notes; (iii) to impose taxes or fees; or (iv) to restrict the use or uses of property in the Zone. The Board's chairperson shall have the authority to execute agreements that the Board is lawfully allowed to enter into and that the Board considers necessary or convenient to implement the Plan. Section 4. DELIVERY ®F AMENDED PLANS TO TAXING ENTITIES. That the City Manager is hereby directed to provide a copy of the Plan to the governing body of each taxing unit that taxes real property located in the Zone. Page 2 Ordinance Approving the Project and Financing Plan For Tax Increment Reinvestment Zone Number Six, City of Fort Worth, Texas Section S. 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 6. EFFECTIVENESS. That this Ordinance shall take effect and be in full force and effect from and after its adoption. ANID IT IS S® ®RDAINED. ADOPTED AND EFFECTIVE: ..~ I `~ ~ ~/~ Page 3 Ordinance Approving the Project and Financing Plan For Tax Increment Reinvestment Zone Number Six, City of Fort Worth, Texas APPROVED AS TO FORM AND LEGALITY: By: Peter Vaky Assistant City Attorney M&c: C -1 3 ~ O `~ Page 4 Ordinance Approving the Project and Financing Plan For Tax Increment Reinvestment Zone Number Six, City of Fort Worth, Texas EXHIBIT "A" The Financing Plan and Project flan For Tax Increanent ~.2einvestinent Zone Number Six, City of Fort Worth, Texas (The l~iverfront TIF) February 24, 2003 -1- Table of Contents I. Description of the Proposed Zone (Pages 3-5) A. Map B. Legal Description II. Economic Impact (Pages 6-11) A. Direct Increased Tax Base- B. Employment, Visitors, and Hotel Occupancy, Productivity, and Impact on Surrounding Area C. Impact on Surrounding Properties Including Kick-off for the Trinity Vision III. Tax Increment Projections (Page 12-.13) N. Public Infrastructure Costs and Financing (Page 14-15) -2- I. I)~escription of the Proposed Zone -3- A. TIF 1VIap _.' c.cvtRisT_, t 'z,;y\~ `~,` \` ~ \~\~ ~ ~'['\~Cii~r-~,a,l~i:~s~ ~r`f t r ~ ~~„s ' East ROW •~' ~'~ West ROW yy~ ~,\ ». Centerline of _ ~.~ ~'""~,~.-. Line of Ta for St. \ ,' Y Line of Houston St. a _~ 2 Trinity River i''~ .-~ '°"" ''': '~ ~,,, `' `'"~•~, South ROW /`~-1---_ ~ North ROW ,_ ,_. ; ~/ '`-~. Line of Franklin St. ~~ ' /' % ' ~ .~. _~_ ~ Line of Belknap St. J ~` ~• s `` ` \ '` >~ ~ . /. /f,. ~` - ,,,z6' ~ ~':~ ~. _---r »~ ~ " y~ ,~ C • West ROW Line '--' `~,, ~ ~ /" QO~r •~ 5^3 ~, ) ~•` ' '" Of Commerce St. ~ ' \~.~ pC.s.°' , (~, '~ i 408 ~~ ~t • 'y~ $. ~ _ ,~'` t~i7 ~, ca^ . _.... ~, + a~... .L ' c ~o ~ `?~ .~ i PKG~R ~ 2 ~?i~ "\/'~ ~- `fl ~l~jt~ly~2e~ \, ,.~ '' `\ ~ ~ , t ~` ~ ' y'~ ~\ ` , ,,'L~ South ROW Line f~ 1 r~z ~ ,~ \ ~ 1.3~ H ~ ~ ~ ;}'~k . '~e~ • "'y `~ Of Weatherford St. ~ s ~ ~~ ! e \ - westRow ~ s ' ,3~~ 1~'~ ~' ,,. ~` •~ `~i t„ ~" r h Of Henderson ,~,'+ `'~~ F '~ ~,~ ` West ROW Line Street Of Houston St. ~ ]` ~~) Y t y ~ '~• 3 ~ ` 1. 4~ /-~ s~` , . ' ~~`• S ~ ~ ,. ~ \ ~ > East ROW Line ~ ~ . , ~... „i ^ P ~ ~~~ C~, _ ~,, ,. .< ~, ,`. ;~,. ,~ \ _ ,~ ~ - ~~\ sn ~~ Of Taylor St. a ,a ~•~. \` ~ South ROW Line e +„ ~.~ ~.~. ;.~.~~'~' ~ ~ • r`~, : _/\~~.. `.. .. ! _ y ~ ' , ' ~ Of Belknap St. ~ti ~ ~~,,`i- -'% South ROW Line. `~- ~% _ ~ \_~., ~ East ROW Line ~ South ROW Line ~ ~TM Of Belknap St. •`° .'~s~~,, ` Of Cherry St. Of Weatherford St, r~'~u ,~, ,,~ ,^ J ,,,~ - Tom. ~ i ` ~. •/' ~ ...\~, , k: ~/ . -4- B. Legal Description of the TIF District Beginning at a point which is the intersection of the south. ROW line of Belknap Street and the West ROW line of Henderson Street in Downtown Fort Worth, Tarrant County Texas, thence North and northwesterly along the west ROW line of Henderson Street to a point where said line intersects the current centerline of the Clear Fork of the Trinity River, thence Easterly along said centerline of the Clear Fork to a point where said centerline intersects a projection of the east ROW line of Taylor Street, thence South along the east ROW line of Taylor Street to a point where said line intersects with the south ROW line of Franklin Street, thence . East along the south ROW line of Franklin Street to a point where said line intersects the west ROW line of Houston Street, thence South along the west ROW line of Houston Street to a point where said line intersects the north ROW line of Belknap .Street, thence East along the north ROW line of Belknap Street to a point where said line intersects the west ROW line of a Commerce Street to a point where said line intersects the south line of Weatherford St., thence West along the south ROW line of Weatherford St. to a point where said line intersects the west ROW line of Houston St., thence North along the west ROW line of Houston St. to a point where said line intersects the south ROW line of Belknap St., thence West along the south ROW line of Belknap St. to a point where said line intersects the east ROW line of Taylor Street, thence South along the east ROW line bf Taylor Street to point where said line intersects the south ROW line of Weatherford St., thence West along the south ROW line of Weatherford St. to a point where said line intersects the east ROW line of Cherry St., thence North along the east ROW line of Cherry St. to point where said line intersects the south ROW line of Belknap St., thence West along the'south ROW of Belknap St. to a point where said line intersects the west ROW line of Henderson St., which is the point of beginning, said area containing approximately 2,770,332 square feet, or 63.6 acres. ~tilap and Boctnda~y Description prepared by Gideon Toal, Inc. -5- II. Ec®n®mic Impact -6- II. Economic Impact RadioShack Will Build a Major Urban Campus RadioShack plans to spend over $200,000,000 on land and corporate campus construction in the subject TIF Zone area over the next three years. This urban corporate campus will have over 900,000 SF of buildings and over 2,400 cars parked in structured parking lots. Other improvements will include a major public plaza located in the southeast portion of the property, a "signature RadioShack Store" located at the intersection or Taylor Street and Belknap Street, and major landscaping on the Trinity River frontage. -7- ._. _. A. Direct Increased Tax Base The development will result in an increased tax base within the TIF zone estimated to be at least $154,000,000 beginning in 2006, the first full taxable year after construction. Assuming historical rates of appreciation, the increase in tax base would be' approximately $263,000,000 after thirty years. All of this value will add to the tax rolls because the developable portions of property (above the flood plain) have been tax- exemptproperties for over 50 years. Tax Base Increase Based on $154,000,000 Initial Appraised Value Note: The term of the TIF is proposed to be 34 years to begin in 2002, but the first 4 years will generate little or no increment, because the RadioShack Campus will be under construction. Year 1 in the tables corresponds to 2006, which is the ftrst year of expected large tax increment. Increments Directly Added to New Corportate Campus TIF Assumptions: Taxable Appraised Value Annual Appreciation Property Value; First 3 Yea Annual Appreciation Property Value; Each Ye Thereafter Year Year Year Year Tax Rate 10 20 0 Total ~u A?ti t+. w ....y.~M1 •v,. ~~; , .K~.~'~xable. is ~1~aCde~~ ~. ~ v ....~..~... $~A'S4 ~ • ~S'' iF ~ ~' J, ~ F 7G X97 3• y tvl i l k5 +:;~ ~ ~~15' T ~`l ~ = ! p~ :~ . ~1i2 e'605hT 1~ F ~ Y.'1: x e.. 9 ~~ ~, .,, ~al~ ~„ p :.. FWISD 0.01 00 2 525 600 2 901 121 3 536 450 $ 4 310 912 - ` 98'62rF 737>: Ci 0.008 50 $ 1 332 100 $ 1 530 164 1 865 262 2 273 743 `` 52`tl2 i1T Count 1 JP5 0.005 80 782 320 898 640 1 095 437 $ 1 335 331 - - 30.550 543`! ' TCC / TRWD 0.001264 $ 194 656 $ 223 599 $ 272 565 $ 332 256 T'80i 552 Annual Totals: r~ "" `: _ "`` ' ` '$ ` 4834' 676 : $ ~ `5'553 523' 6169 714 ~" $ ' $ 252 243. $ -' 1.88;799 949`. Cumulative Totals: ._:___~._,: .._ _::,. 3 ':4~834676~ `$ - X51165226•.' $ 1'13190945' ` _188799-949 ~~,~'N .w-~,w :_ a. RadioShack Corporate Headquarters $205,000,000 capital investment Assume TAD appraisal at 75% of hard cost = $154,000,000 -g- B. Employment, Visitors, and ~Iotei Occupancy, Productivity, and Impact on Surrounding Area Employment, Visitors, and Hotel Occupancy With an initial employment of approximately 2,400 jobs, the urban campus is expected to have growth potential to accommodate over 4,000 jobs. RadioShack is the largest single corporate user of hotel, space in the Downtown Area. RadioShack attracts hundreds. of business associates and venders every week. It is not uncommon for RadioShack to have as many as 400 to 500 business associates and family in during a 3 to 5' day training and briefing period. Productivity and Company Growth This move to a RadioShaclc corporate campus from its current 30+ year-old Tandy Center will accommodate growth and enable RadioShack to continue to be a "Technology Leader" in the 21St Century. Development of this 48-acre urban campus gives RadioShaclc the land requirements to attain these growth and productivity goals, while remaining in Downtown. Impact on Surrounding Area and Kick-off of the Trinity River Vision Development of this major campus will have a major impact on improving development and absorption of surrounding lands. The map on the following page indicates the immediate impact areas that will see major developments over the next 30 years in great part because of the RadioShack urban campus. The RadioShack campus will anchor this new wave of reinvestment centered on the Trinity Waterfront and north downtown. The eight development areas depicted on page 11 have a development potential of $800,000,000 to $1.,200,000,000 over the next 40 years. Of these amounts, 85 to 90% will be private investments. The source of this economic development information is the Trinity River Vision Study -Central City Section, now being prepared by Gideon Toal, Inc. and CDM Engineers for the Tarrant Regional Water District and the Fort Worth Streams and Valleys Committee. -9- Estimated Build Out in the Direct Impact ~4rea of the RadioShack Campus Estimated: .9,600,000 SF Total New Build Out %Built . Year SF Value/SF Total Value 10% 5 960,000 $120.00 $115,200,000 15% 10 1,,440,000 $120.00 $172,800,000 40% 15 3,840,000 $120.00 $460,80.0,000 50% 20 4,800,000 $120.00 $576,000,000 60% 25 5,760,000 $120.00 $69.1,200,000 75% 30 7,200,000 $120.00 $864,000,000 85% 35 8,160,000 $120.00 $979,200,000 100% 40 9,600,000 $120.00 $1,152,000,000 Direct Impact Area around the proposed RadioShack Campus and Riverfront TIF (See map below). Source: The Trinity River Vision Report prepared for the Tarrant Regional Water District by Gideon Toal, Inc. and CDM Engineers. -10- C. Impact on Surrounding Properties Including Kick-Off for the Trinity Vision Civic Point ~'~.~,, ~ --Major Civic Attracfi ~n L t ~ _,~ ~~ Lry~~. ~ r ~ ~ r x~ t ~~., .~ ~ ~.rrt ~ s E r ; r r xt~ ~~~~ ~ Northiake Development ~~,~., y --Mixed Use adjacent to Lake --Office /Support retail fist two levels -- Residential above ~ ~'~ ~ ,', North of '7th Street r a h . --Mixed Use z ~'; ~~~~~ x~ ,a --Residential Emphasis ,~ above 't: ~ ~ ~: --Retail Emphasis at first e +' ;~ or two levels ~ ~~ x f ~~~ '~ y LGxi} ~~ ' ~ ~ - ~ `~ ~ LaGrave Field Development .,.L ~~ 21.5 ='~ `-~~ --Professional Baseball r ~~ f ~' , ~ -Retail / Restaurant/Office ~4.~ ,x ~ ~ '''3 -~ ~ ~ Bluff View Development { ~,~°~~, '~~,*, ~ ~` ~ --Residential Emphasis adjacent to River ~t ,~ ,~ - _ , ~~. `~ _ --Retail /Office adjacent to Main St. :~ ~ ~ i'' ~ `~ "~ ~, ~ Samuels Ave. South ~~ Y 4 / ~ -e~ ~h~ "~ _ '~ r; ~ ,~~~ --Residential Emphasis r1 ~ ~' ~ ~,~ ~• . x~ ~ --Possible Office /Corp. Office / ,~~~ x~ ' ~ ~„ t ~ ,~ Education Center south of ~~ ~ ~ ~ ~~-~" ~~'~~ Weatherford ~' ~~~ Y" r c`~z r ' ~ ~? ~~' '~ ~ ~ ~';~ T~z ~ ~ tail at street level where possible f ,, '•, ,~, Tarrant County Campus Improvements .~ ,~ ~,. ~ ~ ~ : -~ ~ + ~ ,, ~~ Redevelopment of Tandy Center and k~'` ~ ~ roved Access to City Library (PNL) Henderson Corridor Pierl Corp Campus --Mixed Use Developments d~.oS~c ' ect pack Area -11- III. Tax Increment Projections -12- III. Tax Increment Projections The tables below indicate that a 34 year TIF could generate an increment of approximately $38,000,000. This assumes participation from Tarrant County, the Tarrant County Hospital District, Tarrant Regional Water District, and Tarrant County College. With participation .from Tarrant County and the Tarrant County Hospital District the increment would be approximately $31,000,000. Table ITI a -Potential TIF Revenue Projections -Based on $154,000,000 Year One Value Assumes Participation by Tarrant County, Tarrant County Hospital District, Tarrant Regional Water District, and the Tarrant County College District Taxable Appraised Value - 154,000000 Annual Appreciation in Property Value; First 3 Years = 0"/0 Annual Appreciation in Properly Value; F~ch Yea Thereafter = 2% Year Year Year Year Tax Rate 1 2006 10 20 30 Total ':~Taxdtitar _, i~eHillalue~t. ..:~;:~_. ~'. ~:~ , ....:,a ; ... ,,.-,1 ,5'~"~R~k~'i~ d~t;154'OOOd00 ~'r.~,,,.Fr.~~9 89t~683` ,$;~~'~1'~;r,^~15:83T179 262. '517 ~:&.+~i,"r',... "i~~w'~~~C ~ ~ . ~~, ~ 0.000000 $ $ $ $ $ TRWD 0.000200 $ 30,800 $ 35,380 $ 43,127 $ 52,572 $ 1,202;777: Court 0.005080 $ 782,320 $ 898,640 $ ' 1,095,437 $ 1,335,331 ''$ `- : is i 30;550;543?. TCC 0.001064 $ 163,871 $ 188,237 $ ?29,460 $ 279,710 :$' :''''''::''::6;399377: Annual Totals: ` . ' ` `„;~:: l<~~";;. +~;~ $ ' ._976:991. -$ :; . . > :1,122.256 $ 1368,0?A .$ :':. 1.667;8131 $ ... :;:38,152;G97 Cumulative Totals :. ;, <'~ $ 991 ,$ 10339`470 $ '22;873 62B' ~$ 1 `697- `~:~..: ~~~r; Note: The term of the TIF is proposed to be 34 years to begin in 2002, but the first 4 years will generate little or no increment, because the RadioShack Campus will be under construction. Year 1 in the tables corresponds to 2006, which is the first year of expected large tax increment. -13- IV. Public Infrastructure Costs and Financing -14- IV. Public Infrastructure Costs and Financing The areas within the proposed TIF and the adjoining public corridors have been analyzed far how they can contribute to the overall quality of environment for the north Downtown area: The summary below outlines a list of projects and budgets that are needed to carry out the project plan. It is anticipated that development agreements between the TIF 6 Board of Directors and RadioShack will be initiated for certain utility and roadway projects that commence before sufficient TIF increment is available, in order to insure that RadioShack will be reimbursed for expenses related to the projects at the time that increment is available. Government bond financing is not anticipated in the first five years of the 30-year TIF. The County Commissioners Court may determine to finance certain future improvements using some form of County bond financing. Current assessed value of the proposed TIF zone is $28, 609,856 for taxable properties. -15- Estimated Public Infrastructure and Costs Years Years Description of anticipated Improvements 2002 to 2005 2006 to 2032 Tarrant County Acquisition of Tandy Technology Center $8,400,000 Utility Relocations and Upgrades: Water, Sanitary Sewer, Gas, Electric, Telecommunications Lines $5,100,000 $3,000,000 Pedestrian and Street Landscape Improvements: Taylor Street between Weatherford and the Trinity River, Henderson Street between Weatherford St. and the Trinity River, Belknap St between Calhoun Street and Henderson Street, Weatherford St between Henderson and Calhoun Street Roadway and Storm Drain Improvements: Taylor Street between Belknap and the Trinity River, Belknap Street between Houston Street and west of Henderson Street, Henderson Street between the Trinity River Bridge and Weatherford Street, Access Road from Henderson to Public Parking area on Trinity River (east of Henderson),Signal light upgrades on Belknap, Weatherford, and Henderson Public Plaza at Taylor Street and Belknap Street - Amenities to be added for general public, such as seating, landscaping, public art and water display Trinity Waterfront Development: Between Henderson Street and Main Street Historic Courthouse Block -Demolition of the inappropriate appendage to the Historic Tarrant County Courthouse, restoration and beautification of the surrounding site and infrastructure. Note: Above numbers include provision for administration and design $750,000 $2,400,000 $950,000 $800,000 $1,300,000 $500,000 $1,100,000 $3,000,000 $21,450,000 $3,000,000 $8,850,000 Totals: $8,400,000 $8,700,000 $1,700,000 $3,200,000 $1,300,000 $1,600,000 $6,000,000 $30,300,000 -16- City of ~'OYt ~Yorth, Texas Ma~ or ~n~ Council Cornmunic~tion y DATE REFERENCE NUMBER LOG NAME PAGE 3/4/03 **G~-13904 ~ 17RIVERFRONT 1 of 1 suB~ECT ADOPTION OF ORDINANCE APPROVING A PROJECT PLAN AND FINANCING PLAN FOR TAX INCREMENT REINVESTMENT ZONE NUMBER SIX, CITY OF FORT • WORTH, TEXAS RIVERFRONT TIF RECOMMENDATION: It is recommended that the City Council adopt the attached ordinance approving a Project Plan and Financing Plan for Tax Increment Reinvestment Zone Number Six, City of Fort Worth, Texas (Riverfront TIF). DISCUSSION: The Riverfront TIF was .created on November 12, 2002 (M&C G-13800 and Ordinance No. 15325). It includes property in downtown Fort Worth near the Trinity River, including the. site of RadioShack Corporation's new headquarters and the Tarrant County Courthouse. State law (Tax -Code 311.011) requires that the Board of Directors of a TI F prepare and adopt a project plan and a reinvestment zone financing plan (Plan).. In .order to be effective, the City Council must approve the Plan. At its meeting on February ~4, 2003, the Riverfront TIF's Board of Directors adopted the attached Plan and recommended the approval of the Plan by the City Council. In addition to making the requisite statutory findings and approving the Plan, adoption of the attached ordinance expressly grants authority to the Riverfront TIF's Board of Directors to enter into agreements that are. necessary or convenient for the implementation of the Plan pursuant to Tax Code Section 311.010(a). The Riverfront TIF's Board of Directors would not, however, have the power of eminent .domain,. the power to issue bonds or notes, the power to impose taxes or fees; or the power to restrict property uses in the Zone pursuant to Tax Code Section 311.010(c). ' FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action has no material effect on City funds. . RR:r Submitted for City Manager's FUND • ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (fo) Reid Rector 6140 Originating Department Head: Tom Higgins 6192 (from) APPROVED 3/4/03 .ORD. #15470 Additional Information Contact: Peter Vaky 7601 Ardina Washington 8003