HomeMy WebLinkAboutIR 8548 INFORMAL REPORT TO CITY COUNCIL MEMBERS NO. 8548
Date: December 2, 2003
Page 1 of 2
TO: Mayor Moncrief and Members of the City Council
X a
la,73 SUBJECT: Designation of Tax Increment Reinvestment Zone Number Seven
(North Tarrant Parkway TIF) for Infrastructure Improvements
Background: 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 #7 (North Tarrant Parkway TIF).
Since 1996, the City Council and the Texas Department of Transportation have entered into several contracts
for the construction of public roads; in particular, the North Tarrant Park-way/IH-35W interchange, ramps, and
frontage roads, and the connecting road(North Tarrant Park-way) from IH-35W east to Rainey Lake Road.
A Community Development Agreement between the City and AIL Investment, L.P. was approved May 27, 2003,
(City Secretary Contract No. 28858, M&C C-19603), which allows AIL Investment, L.P. to pay a portion of the
City's share of the costs related to the construction of the North Tarrant Parkway/IH-35W interchange and North
Tarrant Parkway from IH-35W to Rainey Lake Road and to be reimbursed for such costs plus 4% interest from the
tax increment of a tax increment reinvestment zone. The total cost share for the construction of the
improvements is as follows:
01IF1117, City of Fort Worth $ 5,809,394
Texas Department of Transportation $ 2,445,357
Federal $11,074,217
Total Cost of Improvements $19,328,968
Proposed TIF Boundary: The proposed zone contains approximately 2008 acres with the western most
boundary being Harmon Road, the northern most boundary being Golden Triangle Boulevard, the eastern
most boundary being Old Denton Highway, and the southern most boundary being just below the State
Highway 287 and IH-35W split. (Please see Attachment A: Proposed TIF District 47 Boundary).
Proposed TIF Project and Finance Plan: TIF participation would be used as the source of funds to repay the
estimated $4.6 million "loan" plus interest from the developer on behalf of the City. The TIF revenue would pay
for the costs associated with the construction of the North Tan-ant Parkway interchange, ramps, and frontage
roads, and the connecting road (North Tarrant Parkway) from IH-35W east to Rainey Lake Road. These are the
only projects included in the project plan. However, additional projects may be added in the future which would
require the approval of the City Council.
The assumptions underlying the proposed preliminary financing plan for the TIF are as follows:
Estimated Base Year Appraised Value: $1,282,515
Term of the TIF: 15 years
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS