HomeMy WebLinkAboutIR 8549 INFORMAL REPORT TO CITY COUNCIL MEMBERS NO. 8549
saso Date: December 2, 2003
To: Mayor Moncrief and Members of the City Council
Page 1 of 2
Designation of Tax Increment Reinvestment Zone Number Eight (Lancaster
Corridor TIF) for the Redevelopment of the Downtown Portion of the Lancaster
Corridor
Background In September 1999, the Lancaster Corridor Steering Committee developed a framework to redevelop
the Downtown portion of the Lancaster Corridor.With further refinement and detail from consultant expertise, the
Lancaster Corridor Redevelopment Plan outlined the community's vision for a revitalized Lancaster Street—bounded
on the east by Calhoun Street and on the west by Henderson Street.In November 2000,City Council endorsed the
plan and directed staff to commence preliminary engineering. The stated goal of the Lancaster Corridor Steering
Committee and City Council that the $15 million of local, State and Federal appropriations for the public
infrastructure improvements will leverage significant private sector development along the corridor.
The Plan called for the implementation of a tax increment reinvestment zone(TIF)to facilitate the private
development.The purpose of the TIF would be to fund public participation in significant development projects.
Development Opportunity: Since January 2003, Staff has analyzed the appropriateness and feasibility of establishing
the TIF for the Lancaster Corridor. Staff has taken into consideration potential redevelopment scenarios and input
from a range of private sector developers.Most importantly,however,a development team consisting of Wood
Partners and Renaissance Development has submitted a request for City participation in the historic restoration of the
T&P Terminal into-apartments,the development of a new four story apartment complex, and structured parking to
support the 232 total residential units. This immediate opportunity, having a need for public participation,makes
consideration of establishing a TIF for the Lancaster Corridor timely.Debt and equity sources for this$26 million
investment to reuse the historic 1931 structure fall short, with a financing gap of$2.8 million.
T&P Terminal Project Financing Structure
Project cost $26.0 million
-Equity $ 3.3 million
-Federal Tax Credits $ 1.5 million
-Construction Loan $18.4 million
Total Gap $2.8 million
Proposed TIF Purpose and Boundaries: The establishment of a TIF in the 2003 calendar year would enable the City
to capitalize on this development opportunity that has the potential of encouraging future significant investment
activity along the corridor. The proposed boundaries of the TIF reflect its future purpose of facilitating development
along the Downtown portion of the Lancaster Corridor and promoting complementary development linking Lancaster
Street with the northern activity centers of Downtown(Please see Attachment A:Proposed TIF District#8 Boundary).
As projects come forward that meet these objectives City Council may choose to add projects by amending the TIF
Project Plan and Participation Agreements. Given the timing of this potential catalyst project, the proposed TIF
Financing and Project Plans currently centers on the redevelopment of the T&P Terminal.
Proposed TIF Project and Finance Plan: TIF participation would be used as the source of funds to cover the
estimated $2.8 million gap of the total $26 million investment. The TIF revenue would pay for the following costs
associated with developing the site:
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS