HomeMy WebLinkAboutIR 8439 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8439
PAM% Date: October 15, 2002
rr a TO: Mayor Barr and Members of the City Council
SUBJECT: Status Report on the Creation of TIF #6 (Riverfront TIF)
The purpose of this Informal Report is to present a synopsis of events that have occurred and that
will occur which will lead to the creation of TIF #6 (Riverfront TIF).
On July 9, 2002, the City Council approved an Economic Development Agreement with
RadioShack (M&C C-13668). One of the terms of the Agreement is the establishment of a tax
increment financing district (TIF). Staff, in collaboration with consultants from RadioShack, has
begun the necessary steps to create the TIF. As required by Chapter 311 of the Texas Tax Code,
a letter was sent from the mayor to each taxing entity notifying them of the City's intent to create a
TIF and which included a Preliminary Financing Plan and Project Plan for the area. A copy of the
plans is attached for your review. Additionally, the Economic & Community Development
Committee received a briefing on the TIF creation time line, and staff has met with representatives
from each taxing entity to discuss the purpose of the TIF and creation time line.
As required by Chapter 311, the City's governing body will need to meet make a "formal
,gesentation" to the governing bodies of Tarrant County and Fort Worth Independent School
strict. One member of the Council, with assistance from staff, can conduct this meeting. Both
arrant County and Fort Worth Independent School District have agreed to place the "formal
presentation on their October 22nd agendas.
Pursuant to Chapter 311, the boundaries of a TIF cannot overlap the boundaries of another TIF.
Because the boundaries of the proposed TIF #6 overlap property that is currently in TIF #3
(Downtown TIF), the property that is in TIF #3 will need to be removed from TIF #3 so that it can be
placed into TIF #6. Therefore, staff is planning to place an M&C on the October 29th Council
agenda to remove property from TIF #3.
Before a TIF can be established, a public hearing must be conducted. Therefore, staff is planning
to place an M&C on the November 5th Council agenda to conduct a public hearing on the creation
of TIF #6 and to create TIF #6.
After TIF #6 is created, the Council will need to appoint a Board of Directors for the TIF. As
required by Chapter 311, the Board will prepare and adopt a project plan and a financing plan for
the TIF and submit the plans to Council for final approval. At this time, there are not any estimated
dates related to the approval of project plan and financing plan.
dry W. Jackson z
,qty Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
Preliminary Financing Plan and Project Plan
for the
Proposed Tax Increment Reinvestment Zone Number Six,
City of Fort Worth, Texas
(Riverfront TIF)
Prepared for
The City of Fort Worth
Tarrant County
r Tarrant County College
Fort Worth ISD
Tarrant Regional Water District
September 13, 2002
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Table of Contents
I. Description of the Proposed Zone (Pages 3-5)
A. Map
B. Legal Description
11. 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
111. Tax Increment Projections (Page 12-13)
N. Public Infrastructure Costs and Financing (Page 14-16)
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1. Description of the Proposed Zone
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A. TIF Map
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Centerline of
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East ROW
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Of Belknap St. Of Cherry St.
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TIF Map
Proposed Tax Increment Reinvestment Zone Number Six,
City of Fort Worth, Texas
(Riverfront TIF)
Map and Boundary Description prepared by Gideon Toal, Inc.
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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
East 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 Weatherford Street, thence
West along the South ROW line of Weatherford Street to a point where said line intersects the
East ROW line of Cherry Street, thence
Northwesterly along the east ROW line of Cherry Street to a point where said line intersects the
South ROW line of Belknap Street, thence
Westerly along the south ROW line of Belknap Street to a point where said line intersects the
West ROW line of Henderson Street, which is the point of beginning, said area containing
approximately 2,439,360 SF, or 56 acres.
Map and Boundary Description prepared by Gideon Toal, Inc.
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II. Economic Impact
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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-
exempt properties 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 I in the tables
corresponds to 2006,which is the first year of expected large tax increment.
Increments Directly Added to New Corportate Campus TIF
Assumptions:
Taxable Appraised Value
Annual Appreciation in
Property Value;First 3 Years
Annual Appreciation in
Property Value;Each Ye,
Thereafter
Year Year Year Year
Ta Rate 39 30
FWISQ 52 600 $ 2,901,121 $ 3,5364 S0 $ 43110,912
city I 1 1 M5M2 1 2.2Z3.7
County I JPS S 782.320 $ 898MQ 1-2 1,095,437. 1,335 331
TCCITIRWID 194,656 $ 223499 272,565 332256
Annual Totals:
Cumulative Totals:
a.RadioShack Corporate Headquarters$205,000,000 capital Investment
Assume TAD appraisal at 75%of hard cost=$154,000,000
B. Employment, Visitors, and Hotel 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 RadioShack 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 21" Century. Development of this 48-acre urban campus gives
RadioShack 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.
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Estimated Build Out in the Direct Impact Area of the RadioShack Campus f
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 $460,800,000
50% 20 4,800,000 $120.00 $576,000,000
60% 25 5,760,000 $120.00 $691,200,000
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.
ti
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III. Tax Increment Projections
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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 M 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-
Annual Appreciation it
Property Value;First 3 Year
Annual Appredation'
Pq)erty Value;Each Yea
Thereafter
NN
Year Year Year Year
Tax Rate 12008 10 20 30 1 Total
TRWD $ 30,800 $ 35,380 $ 43,127 $ 52.572
cou $ 782320 $ 898,640 $ 1,095,437 $ 1,335,331
TGC $ 163,871 188,237,$ 229,460 279,710
An vat Totals:
f kkf/10201111;—#MM
b,r:urriulative Totals: V9,7XV;W
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 I in the tables
corresponds to 2006,which is the first year of expected large tax increment.
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J.
IV. Public Infrastructure Casts and Financing
A,
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A
IV. Public Infrastructure Costs and Financing
The areas within the proposed TIF and the adjoining public corridors have been analyzed
for 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 the projects (listed below) that
commence before sufficient TIF increment is available, in order to insure that
RadioShack will be reimbursed for expenses related to the projects.
r Or
of
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Years Years AMN
Description of anticipated
Improvements 2002 to 2005 2006 to 2010 Totals:
Tarrant County Acquisition of Tandy
Technology Center $8,400,000 $8,400,000
Utility Relocations and Upgrades:
Water, Sanitary Sewer, Gas, Electric,
Telecommunications Lines $4,500,000 $4,500,000
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 $750,000 $950,000 $1,700,000
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 $1,600,000 $800,000 $2,400,000
Public Plaza at Taylor Street and
Belknap Street -Amenities to be added
for general public, such as seating,
landscaping, public art and water display $900,000 $900,000
Trinity Waterfront Development:
Between Henderson Street and Main
Street $300,000 $1,100,000 $1,400,000
$16,450,000 $2,850,000 $19,300,000
Note:Above numbers include provision
for design and administration
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